Oceaneering Reports Second Quarter 2020 Results

|Jul 29|magazine74 min read

HOUSTON, July 29, 2020 /PRNewswire/ -- Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today reported a net loss of $24.8 million, or $(0.25) per share, on revenue of $427 million for the three months ended June 30, 2020.  Adjusted net loss was $14.2 million, or $(0.14) per share, reflecting the impact of $9.6 million of pre-tax adjustments associated with restructuring expenses and foreign exchange losses recognized during the quarter and $3.3 million of other discrete tax adjustments.

During the prior quarter ended March 31, 2020, Oceaneering reported a net loss of $368 million, or $(3.71) per share, on revenue of $537 million.  Adjusted net income was $3.5 million, or $0.04 per share, reflecting the impact of $393 million of pre-tax adjustments, primarily $379 million associated with goodwill impairments, asset impairments and write-offs recognized during the quarter.

Adjusted operating income (loss), operating margins, net income (loss) and earnings (loss) per share, EBITDA and adjusted EBITDA (as well as EBITDA and adjusted EBITDA margins) and free cash flow are non-GAAP measures that exclude the impacts of certain identified items.  Reconciliations to the corresponding GAAP measures are shown in the tables Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS), EBITDA and EBITDA Margins, Free Cash Flow, Adjusted Operating Income (Loss) and Margins by Segment, and EBITDA and Adjusted EBITDA and Margins by Segment. These tables are included below under the caption Reconciliations of Non-GAAP to GAAP Financial Information.

Summary of Results

(in thousands, except per share amounts)




Three Months Ended


Six Months Ended



Jun 30,


Mar 31,


Jun 30,










2020


2019


2020


2020


2019












Revenue


$

427,216



$

495,781



$

536,668



$

963,884



$

989,667


Gross Margin


42,537



41,983



46,752



89,289



69,570


Income (Loss) from Operations


(5,182)



(9,635)



(380,757)



(385,939)



(31,349)


Net Income (Loss)


(24,788)



(35,182)



(367,598)



(392,386)



(60,009)













Diluted Earnings (Loss) Per Share


$

(0.25)



$

(0.36)



$

(3.71)



$

(3.96)



$

(0.61)







Roderick A. Larson, President and Chief Executive Officer of Oceaneering, stated, "Considering all of the uncertainties surrounding the crude oil markets and the COVID-19 pandemic, we were satisfied with our second quarter 2020 results.  For the second quarter, we generated adjusted EBITDA of $40.5 million, exceeding consensus estimates, and we generated $26.9 million of free cash flow.  These positive results were partially attributable to our actions to substantially reduce structural costs in light of an expected continuation of lower demand for our services and products.  The positive effect of these cost reductions is reflected in our 9% consolidated adjusted EBITDA margin for the second quarter of 2020, which declined by only 14 basis points as compared to the first quarter of 2020, despite a 20% decrease in revenue.

"As expected, compared to the first quarter of 2020, the aggregate result of our energy segments declined during the second quarter of 2020.  However, this decline was partially offset by improved performance in our non-energy segment, Advanced Technologies, and lower Unallocated Expenses.  We did experience some operational disruptions and delays due to COVID-19 during the second quarter but the safety protocols we, and the industry, put into place in response to the pandemic limited impacts to our employees and customers.

"Sequentially, ROV adjusted operating performance declined as anticipated, primarily due to the lower number of working drilling rigs.  This led to fewer days on hire for drill support services that were slightly offset by a marginal increase in days on hire for vessel-based services.  Our fleet use during the quarter was 64% in drill support and 36% in vessel-based activity, compared to 68% and 32%, respectively, during the first quarter.  Revenue declined 12%, primarily due to a 9% decrease in ROV days on hire.  ROV adjusted EBITDA margin remained relatively unchanged at 31% during the second quarter of 2020 as compared to the adjusted EBITDA margin of 32% achieved during the first quarter of 2020.

"At the end of June 2020 our ROV fleet size was 250, unchanged from the first quarter.  For the second quarter, utilization was 59%, down from 65% achieved for the quarter ended March 31, 2020.  As of June 30, 2020, we had ROV contracts on 86 of the 139 floating rigs under contract, resulting in a drill support market share of 62%.

"Subsea Products adjusted operating results declined during the second quarter of 2020, as compared to the first quarter of 2020, on significantly lower revenue.  Revenue in our manufactured products business was impacted by the delayed receipt of materials, customer-driven project delays, and reduced working hours due to COVID-19.  Revenue in our service and rental business declined due to decreased activity, including the uncertainty of timing of our riserless light well intervention project in Angola.  Persistent cost-reduction efforts helped us to achieve an adjusted operating margin consistent with the margin generated in the first quarter of 2020.

"Our Subsea Products backlog at June 30, 2020 was $486 million, compared to our March 31, 2020 backlog of $528 million.  As expected, there were low levels of bookings during the second quarter, as many of our customers delayed investment decisions due to the uncertainties regarding oil prices and potential COVID-19-related operating risks.  Revenue replacement during the quarter was 67% and our book-to-bill ratio for the trailing 12 months was 0.83.

"The second quarter 2020 Subsea Projects adjusted operating performance improved, as compared to the first quarter of 2020, on lower revenue.  Revenue declined due to decreased customer activity, but we were pleased that adjusted operating results improved due to better project execution and ongoing cost-reduction activity.  Asset Integrity's adjusted operating results declined sequentially on lower revenue and as a result of non-recurring costs on certain completed projects.

"For our non-energy segment, Advanced Technologies, second quarter 2020 adjusted operating results improved sequentially due to good performance from our government businesses.  COVID-19 continues to adversely affect our commercial businesses.  However cost reduction measures implemented during the first quarter of 2020 limited the financial impact on our second quarter 2020 results.  Unallocated Expenses for the quarter were sequentially lower as the return on market-based assets held in a trust for the benefit of certain post-retirement obligations improved, as compared to a first quarter loss.  Additionally, we had reduced information technology costs during the quarter.

"For the second quarter of 2020, our cash balance increased to $334 million, as we generated $26.9 million of free cash flow, largely driven by positive contributions from operations and working capital, and continued scrutiny of our capital expenditures.

"Although we are encouraged by our second quarter 2020 results, uncertainty remains for the rest of 2020.  Many of the markets we serve will likely continue to be impacted by the effects of and associated responses to COVID-19, as well as potential reductions in customer spending as a consequence of the volatility in the macro drivers surrounding commodity prices.  As a result, we are not providing segment financial guidance for the third quarter or second half of 2020.  We affirm that Unallocated Expenses are forecast to be in the high-$20 million range per quarter.  For the year, we affirm guidance for capital expenditures in the range of $45 million to $65 million, our cash tax payments in the range of $30 million to $35 million, and our expectation of CARES Act tax refunds in the range of $16 million to $34 million.

"In our first quarter 2020 earnings release, we outlined our plan for a targeted reduction of annualized expenses in the range of $125 million to $160 million by the end of 2020, inclusive of $35 million to $40 million of reduced depreciation expense.  These cost reduction efforts are progressing well, and we estimate that, since launching those efforts, approximately $85 million of annualized cost reductions have been initiated, with additional savings expected to be achieved throughout the remainder of the year. We continue to expect the cash costs associated with these actions to approximate $15 million in 2020.

"Preserving our liquidity and balance sheet remains a high priority in the current environment.  We expect to generate positive free cash flow for the full year of 2020 based on actions we are taking to achieve cost reductions, reduced capital spending, lower cash taxes, our expectation for CARES Act tax refunds, and cash expected to be generated from working capital for the remainder of the year."

This release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as to the expectations, beliefs, future expected business and financial performance and prospects of Oceaneering.  More specifically, the forward-looking statements in this press release include the statements concerning Oceaneering's: forecasted Unallocated Expenses per quarter, and annual capital expenditures and cash tax payments; targeted reduction range of annualized expenses, including depreciation expense; timing and anticipation of additional savings from cost reduction actions already initiated; cash costs associated with cost reduction actions; belief in generating positive free cash flow during 2020, and the bases for that belief, including expectations regarding: actions to achieve cost reductions, capital spending, cash taxes, CARES Act tax refunds, and cash from working capital for the remainder of the year.

The forward-looking statements included in this release are based on our current expectations and are subject to certain risks, assumptions, trends and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements.  Among the factors that could cause actual results to differ materially include: factors affecting the level of activity in the oil and gas industry, including worldwide demand for and prices of oil and natural gas, oil and natural gas production growth and the supply and demand of offshore drilling rigs; actions by members of OPEC and other oil exporting countries; decisions about offshore developments to be made by oil and gas exploration, development and production companies; the use of subsea completions and our ability to capture associated market share; general economic and business conditions and industry trends; the strength of the industry segments in which we are involved; the continuing effects of the COVID-19 pandemic and the governmental, customer, supplier, and other responses thereto; cancellations of contracts, change orders and other contractual modifications and the resulting adjustments to our backlog; collections from our customers; our future financial performance, including as a result of the availability, terms and deployment of capital; the consequences of significant changes in currency exchange rates; the volatility and uncertainties of credit markets; changes in tax laws, regulations and interpretation by taxing authorities; changes in, or our ability to comply with, other laws and governmental regulations, including those relating to the environment; the continued availability of qualified personnel; our ability to obtain raw materials and parts on a timely basis and, in some cases, from limited sources; operating risks normally incident to offshore exploration, development and production operations; hurricanes and other adverse weather and sea conditions; cost and time associated with drydocking of our vessels; the highly competitive nature of our businesses; adverse outcomes from legal or regulatory proceedings; the risks associated with integrating businesses we acquire; rapid technological changes; and social, political, military and economic situations in foreign countries where we do business and the possibilities of civil disturbances, war, other armed conflicts or terrorist attacks.  For a more complete discussion of these and other risk factors, please see Oceaneering's latest annual report on Form 10-K and subsequent quarterly reports on Form 10Q filed with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements.  Except to the extent required by applicable law, Oceaneering undertakes no obligation to update or revise any forward-looking statement.

Oceaneering is a global provider of engineered services and products, primarily to the offshore energy industry.  Through the use of its applied technology expertise, Oceaneering also serves the defense, entertainment, and aerospace industries.

For more information on Oceaneering, please visit www.oceaneering.com.

Contact:
Mark Peterson
Vice President, Corporate Development and Investor Relations
Oceaneering International, Inc.
713-329-4507
[email protected] 

OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES



















CONDENSED CONSOLIDATED BALANCE SHEETS


































Jun 30,
2020


Dec 31,
2019














(in thousands)

ASSETS

















Current assets (including cash and cash equivalents of $333,509 and $373,655)






$

1,131,908



$

1,244,436



Net property and equipment







647,864



776,532



Other assets










349,012



719,695





Total Assets






$

2,128,784



$

2,740,663




















LIABILITIES AND EQUITY










Current liabilities










$

452,444



$

600,956



Long-term debt










806,006



796,516



Other long-term liabilities






244,925



267,782



Equity










625,409



1,075,409





Total Liabilities and Equity






$

2,128,784



$

2,740,663




















CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS




























For the Three Months Ended


For the Six Months Ended










Jun 30,
2020


Jun 30,
2019


Mar 31,
2020


Jun 30,

2020


Jun 30,
2019










(in thousands, except per share amounts)




















Revenue






$

427,216



$

495,781



$

536,668



$

963,884



$

989,667



Cost of services and products


384,679



453,798



489,916



874,595



920,097




Gross margin


42,537



41,983



46,752



89,289



69,570



Selling, general and administrative expense


47,719



51,618



55,741



103,460



100,919



Long-lived assets impairments






68,763



68,763





Goodwill impairment






303,005



303,005






Income (loss) from operations




(5,182)



(9,635)



(380,757)



(385,939)



(31,349)



Interest income






511



1,848



1,277



1,788



4,452



Interest expense, net of amounts capitalized


(11,611)



(10,199)



(12,462)



(24,073)



(19,623)



Equity in income (losses) of unconsolidated affiliates


674





1,197



1,871



(164)



Other income (expense), net


(3,660)



7



(7,128)



(10,788)



726




Income (loss) before income taxes


(19,268)



(17,979)



(397,873)



(417,141)



(45,958)



Provision (benefit) for income taxes


5,520



17,203



(30,275)



(24,755)



14,051




Net Income (Loss)


$

(24,788)



$

(35,182)



$

(367,598)



$

(392,386)



$

(60,009)




















Weighted average diluted shares outstanding


99,273



98,929



99,055



99,164



98,822


Diluted earnings (loss) per share


$

(0.25)



$

(0.36)



$

(3.71)



$

(3.96)



$

(0.61)




















The above Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations should be read in conjunction with the Company's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q.

 

SEGMENT INFORMATION
















For the Three Months Ended


For the Six Months Ended







Jun 30, 2020


Jun 30, 2019


Mar 31, 2020


Jun 30, 2020


Jun 30, 2019







($ in thousands)












Remotely Operated Vehicles














Revenue



$

98,778



$

120,363



$

111,780



$

210,558



$

220,709



Gross margin



$

13,788



$

17,360



$

18,112



$

31,900



$

26,781


Operating income (loss)



$

5,975



$

8,688



$

9,066



$

15,041



$

10,106


Operating income (loss) %



6

%


7

%


8

%


7

%


5

%


Days available



22,750



25,006



22,750



45,500



49,512



Days utilized



13,501



15,423



14,853



28,354



28,365



Utilization



59

%


62

%


65

%


62

%


57

%
















Subsea Products














Revenue



$

130,655



$

138,910



$

194,838



$

325,493



$

267,754



Gross margin



$

21,578



$

21,029



$

28,639



$

50,217



$

33,344


Operating income (loss)



$

9,068



$

7,413



$

(91,858)



$

(82,790)



$

6,937


Operating income (loss) %



7

%


5

%


(47)

%


(25)

%


3

%

Backlog at end of period



$

486,000



$

596,000



$

528,000



$

486,000



$

596,000

















Subsea Projects














Revenue



$

56,326



$

75,104



$

61,455



$

117,781



$

164,832



Gross margin



$

6,331



$

5,472



$

(2,114)



$

4,217



$

14,505


Operating income (loss)



$

845



$

87



$

(145,290)



$

(144,445)



$

2,979


Operating income (loss) %



2

%


%


(236)

%


(123)

%


2

%
















Asset Integrity














Revenue



$

48,077



$

61,156



$

59,132



$

107,209



$

121,845



Gross margin



$

4,155



$

6,423



$

8,729



$

12,884



$

12,695


Operating income (loss)



$

(2,598)



$

(1,302)



$

(109,441)



$

(112,039)



$

(2,015)


Operating income (loss) %



(5)

%


(2)

%


(185)

%


(105)

%


(2)

%
















Advanced Technologies














Revenue



$

93,380



$

100,248



$

109,463



$

202,843



$

214,527



Gross margin



$

15,089



$

13,386



$

13,428



$

28,517



$

28,634


Operating income (loss)



$

9,707



$

7,241



$

(10,585)



$

(878)



$

16,840


Operating income (loss) %



10

%


7

%


(10)

%


%


8

%















Unallocated Expenses













Gross margin



$

(18,404)



$

(21,687)



$

(20,042)



$

(38,446)



$

(46,389)


Operating income (loss)



$

(28,179)



$

(31,762)



$

(32,649)



$

(60,828)



$

(66,196)















Total


















Revenue



$

427,216



$

495,781



$

536,668



$

963,884



$

989,667



Gross margin



$

42,537



$

41,983



$

46,752



$

89,289



$

69,570


Operating income (loss)



$

(5,182)



$

(9,635)



$

(380,757)



$

(385,939)



$

(31,349)


Operating income (loss) %



(1)

%


(2)

%


(71)

%


(40)

%


(3)

%


The above Segment Information does not include adjustments for non-recurring transactions.   See the tables in our Reconciliations of Non-GAAP to GAAP Financial Information section for financial measures that management considers representative of our ongoing operations.
















 

SELECTED CASH FLOW INFORMATION


















For the Three Months Ended


For the Six Months Ended







Jun 30, 2020


Jun 30, 2019


Mar 31, 2020


Jun 30, 2020


Jun 30, 2019







(in thousands)













Capital Expenditures, including Acquisitions



$

10,631



$

40,898



$

27,229



$

37,860



70,862














Depreciation and amortization:












Energy Services and Products













Remotely Operated Vehicles



$

22,892



$

26,871



$

25,725



$

48,617



$

54,861



Subsea Products



10,024



12,366



62,454



72,478



25,357



Subsea Projects



4,597



7,550



143,346



147,943



15,432



Asset Integrity



190



1,570



111,385



111,575



3,204


Total Energy Services and Products



37,703



48,357



342,910



380,613



98,854


Advanced Technologies



634



765



12,178



12,812



1,595


Unallocated Expenses



361



1,182



1,108



1,469



2,341



Total Depreciation and Amortization



$

38,698



$

50,304



$

356,196



$

394,894



$

102,790

















Goodwill and long-lived asset impairment expense, reflected in the depreciation and amortization expense above, was $310 million in the three months ended March 31, 2020 and the six months ended June 30, 2020.
















RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION

In addition to financial results determined in accordance with U.S. generally accepted accounting principles ("GAAP"), this Press Release also includes non-GAAP financial measures (as defined under SEC Regulation G).  We have included Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share, each of which excludes the effects of certain specified items, as set forth in the tables that follow.  As a result, these amounts are non-GAAP financial measures.  We believe these are useful measures for investors to review because they provide consistent measures of the underlying results of our ongoing business.  Furthermore, our management uses these measures as measures of the performance of our operations.  We have also included disclosures of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), EBITDA Margins and Free Cash Flow, as well as the following by segment:  Adjusted Operating Income and Margins, EBITDA, EBITDA Margins, Adjusted EBITDA and Adjusted EBITDA Margins.  We define EBITDA Margin as EBITDA divided by revenue.  Adjusted EBITDA and Adjusted EBITDA Margins as well as Adjusted Operating Income and Margin and related information by segment exclude the effects of certain specified items, as set forth in the tables that follow.  EBITDA and EBITDA Margins, Adjusted EBITDA and Adjusted EBITDA Margins, and Adjusted Operating Income and Margin and related information by segment are each non-GAAP financial measures.  We define Free Cash Flow as cash flow provided by operating activities less organic capital expenditures (i.e., purchases of property and equipment other than those in business acquisitions).  We have included these disclosures in this press release because EBITDA, EBITDA Margins and Free Cash Flow are widely used by investors for valuation and comparing our financial performance with the performance of other companies in our industry, and the adjusted amounts thereof (as well as Adjusted Operating Income and Margin by Segment) provide more consistent measures than the unadjusted amounts.  Furthermore, our management uses these measures for purposes of evaluating our financial performance.  Our presentation of EBITDA, EBITDA Margins and Free Cash Flow (and the Adjusted amounts thereof) may not be comparable to similarly titled measures other companies report.  Non-GAAP financial measures should be viewed in addition to and not as substitutes for our reported operating results, cash flows or any other measure prepared and reported in accordance with GAAP.   The tables that follow provide reconciliations of the non-GAAP measures used in this press release to the most directly comparable GAAP measures.


Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS)






















For the Three Months Ended






Jun 30, 2020

Jun 30, 2019

Mar 31, 2020






Net Income
(Loss)


Diluted EPS


Net Income
(Loss)


Diluted EPS


Net Income
(Loss)


Diluted EPS






(in thousands, except per share amounts)








Net income (loss) and diluted EPS as reported in accordance with GAAP


$

(24,788)



$

(0.25)



$

(35,182)



$

(0.36)



$

(367,598)



$

(3.71)


Pre-tax adjustments for the effects of:














Long-lived assets impairments










68,763





Long-lived assets write-offs










7,328





Goodwill impairment










303,005





Restructuring expenses and other


5,708









6,630





Foreign currency (gains) losses


3,908





(59)





7,050




Total pre-tax adjustments


9,616





(59)





392,776




















Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods


(2,331)





12





(45,355)




Discrete tax items:













    Share-based compensation


16





1





987




    Uncertain tax positions


735





1,268





(9,652)




    U.S. CARES Act


1,159









(33,784)




    Valuation allowances


3,245









65,208




    Other


(1,887)





2,436





950





Total discrete tax adjustments


3,268





3,705





23,709





Total of adjustments


10,553





3,658





371,130




Adjusted Net Income (Loss)


$

(14,235)



$

(0.14)



$

(31,524)



$

(0.32)



$

3,532



$

0.04


Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss)




99,273





98,929





99,649


















 

















Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS)


























For the Six Months Ended







Jun 30, 2020

Jun 30, 2019










Net Income
(Loss)


Diluted EPS


Net Income

(Loss)


Diluted EPS










(in thousands, except per share amounts)








Net income (loss) and diluted EPS as reported in accordance with GAAP






$

(392,386)



$

(3.96)



$

(60,009)



$

(0.61)


Pre-tax adjustments for the effects of:














Long-lived assets impairments






68,763









Long-lived assets write-offs






7,328









Goodwill impairment






303,005









Restructuring expenses and other






12,338









Foreign currency (gains) losses






10,958





(673)




Total pre-tax adjustments






402,392





(673)




















Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods






(47,686)





141




Discrete tax items:













    Share-based compensation






1,003





987




    Uncertain tax positions






(8,917)





2,290




    U.S. CARES Act






(32,625)








    Valuation allowances






68,453





1,539




    Other






(937)





295





Total discrete tax adjustments






26,977





5,111





Total of adjustments






381,683





4,579




Adjusted Net Income (Loss)






$

(10,703)



$

(0.11)



$

(55,430)



$

(0.56)


Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss)








99,164





98,822


















 















EBITDA and Adjusted EBITDA and Margins




















For the Three Months Ended


For the Six Months Ended






Jun 30, 2020


Jun 30, 2019


Mar 31, 2020


Jun 30, 2020


Jun 30, 2019






($ in thousands)















Net income (loss)



$

(24,788)



$

(35,182)



$

(367,598)



$

(392,386)



$

(60,009)


Depreciation and amortization



38,698



50,304



356,196



394,894



102,790



Subtotal



13,910



15,122



(11,402)



2,508



42,781


Interest expense, net of interest income


11,100



8,351



11,185



22,285



15,171


Amortization included in interest expense


333



(335)



(333)





(675)


Provision (benefit) for income taxes



5,520



17,203



(30,275)



(24,755)



14,051



EBITDA



30,863



40,341



(30,825)



38



71,328


Adjustments for the effects of:













Long-lived assets impairments







68,763



68,763





Restructuring expenses and other



5,708





6,630



12,338





Foreign currency (gains) losses



3,908



(59)



7,050



10,958



(673)




Total of adjustments



9,616



(59)



82,443



92,059



(673)



Adjusted EBITDA



$

40,479



$

40,282



$

51,618



$

92,097



$

70,655
















Revenue



$

427,216



$

495,781



$

536,668



$

963,884



$

989,667
















EBITDA margin %



7

%


8

%


(6)

%


%


7

%

Adjusted EBITDA margin %



9

%


8

%


10

%


10

%


7

%















 

Free Cash Flow
















For the Three Months Ended


For the Six Months Ended




Jun 30, 2020


Jun 30, 2019


Mar 31, 2020


Jun 30, 2020


Jun 30, 2019




(in thousands)

Net Income (loss)


$

(24,788)



$

(35,182)



$

(367,598)



$

(392,386)



$

(60,009)


Non-cash adjustments:












Depreciation and amortization, including goodwill impairment


38,698



50,304



356,196



394,894



102,790



Other non-cash


41



495



64,137



64,178



557


Other increases (decreases) in cash from operating activities


23,567



37,968



(84,885)



(61,318)



29,371


Cash flow provided by (used in) operating activities


37,518



53,585



(32,150)



5,368



72,709


Purchases of property and equipment


(10,631)



(40,898)



(27,229)



(37,860)



(70,862)


Free Cash Flow


$

26,887



$

12,687



$

(59,379)



$

(32,492)



$

1,847


























 




Adjusted Operating Income (Loss) and Margins by Segment






For the Three Months Ended June 30, 2020





Remotely
Operated
Vehicles


Subsea
Products


Subsea
Projects


Asset
Integrity


Advanced
Tech.


Unallocated
Expenses


Total





($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP


$

5,975



$

9,068



$

845



$

(2,598)



$

9,707



$

(28,179)



$

(5,182)


Adjustments for the effects of:















Restructuring expenses and other


1,336



1,646



1,250



1,536



(235)



175



5,708




Total of adjustments


1,336



1,646



1,250



1,536



(235)



175



5,708



















Adjusted Operating Income (Loss)


$

7,311



$

10,714



$

2,095



$

(1,062)



$

9,472



$

(28,004)



$

526



















Revenue


$

98,778



$

130,655



$

56,326



$

48,077



$

93,380





$

427,216


Operating income (loss) % as reported in accordance with GAAP


6

%


7

%


2

%


(5)

%


10

%




(1)

%

Operating income (loss)% using adjusted amounts


7

%


8

%


4

%


(2)

%


10

%




%






















For the Three Months Ended June 30, 2019





Remotely
Operated
Vehicles


Subsea
Products


Subsea
Projects


Asset
Integrity


Advanced
Tech.


Unallocated
Expenses


Total





($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP


$

8,688



$

7,413



$

87



$

(1,302)



$

7,241



$

(31,762)



$

(9,635)



















Adjusted Operating Income (Loss)


$

8,688



$

7,413



$

87



$

(1,302)



$

7,241



$

(31,762)



$

(9,635)



















Revenue


$

120,363



$

138,910



$

75,104



$

61,156



$

100,248





$

495,781


Operating income (loss) % as reported in accordance with GAAP


7

%


5

%


%


(2)

%


7

%




(2)

%

Operating income (loss)% using adjusted amounts


7

%


5

%


%


(2)

%


7

%




(2)

%


 




Adjusted Operating Income (Loss) and Margins by Segment























For the Three Months Ended March 31, 2020





Remotely
Operated
Vehicles


Subsea
Products


Subsea
Projects


Asset
Integrity


Advanced
Tech.


Unallocated
Expenses


Total





($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP


$

9,066



$

(91,858)



$

(145,290)



$

(109,441)



$

(10,585)



$

(32,649)



$

(380,757)


Adjustments for the effects of:
















Long-lived assets impairments




54,859



7,689





6,215





68,763



Long-lived assets write-offs






7,328









7,328



Goodwill impairment




51,302



129,562



110,753



11,388





303,005



Restructuring expenses and other


713



1,668



1,480



1,694



795



280



6,630




Total of adjustments


713



107,829



146,059



112,447



18,398



280



385,726


Adjusted Operating Income (Loss)


$

9,779



$

15,971



$

769



$

3,006



$

7,813



$

(32,369)



$

4,969



















Revenue


$

111,780



$

194,838



$

61,455



$

59,132



$

109,463





$

536,668


Operating income (loss) % as reported in accordance with GAAP


8

%


(47)

%


(236)

%


(185)

%


(10)

%




(71)

%

Operating income (loss) % using adjusted amounts


9

%


8

%


1

%


5

%


7

%




1

%


 




Adjusted Operating Income (Loss) and Margins by Segment






For the Six Months Ended June 30, 2020





Remotely
Operated
Vehicles


Subsea
Products


Subsea
Projects


Asset
Integrity


Advanced
Tech.


Unallocated
Expenses


Total





($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP


$

15,041



$

(82,790)



$

(144,445)



$

(112,039)



$

(878)



$

(60,828)



$

(385,939)


Adjustments for the effects of:















Long-lived assets impairments




54,859



7,689





6,215





68,763



Long-lived assets write-offs






7,328









7,328



Goodwill impairment




51,302



129,562



110,753



11,388





303,005



Restructuring expenses and other


2,049



3,314



2,730



3,230



560



455



12,338




Total of adjustments


2,049



109,475



147,309



113,983



18,163



455



391,434



















Adjusted Operating Income (Loss)


$

17,090



$

26,685



$

2,864



$

1,944



$

17,285



$

(60,373)



$

5,495



















Revenue


$

210,558



$

325,493



$

117,781



$

107,209



$

202,843





$

963,884


Operating income (loss) % as reported in accordance with GAAP


7

%


(25)

%


(123)

%


(105)

%


%




(40)

%

Operating income (loss)% using adjusted amounts


8

%


8

%


2

%


2

%


9

%




1

%






















For the Six Months Ended June 30, 2019





Remotely
Operated
Vehicles


Subsea
Products


Subsea
Projects


Asset
Integrity


Advanced
Tech.


Unallocated
Expenses


Total





($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP


$

10,106



$

6,937



$

2,979



$

(2,015)



$

16,840



$

(66,196)



$

(31,349)



















Adjusted Operating Income (Loss)


$

10,106



$

6,937



$

2,979



$

(2,015)



$

16,840



$

(66,196)



$

(31,349)



















Revenue


$

220,709



$

267,754



$

164,832



$

121,845



$

214,527





$

989,667


Operating income (loss) % as reported in accordance with GAAP


5

%


3

%


2

%


(2)

%


8

%




(3)

%

Operating income (loss)% using adjusted amounts


5

%


3

%


2

%


(2)

%


8

%




(3)

%


 




EBITDA and Adjusted EBITDA and Margins by Segment






For the Three Months Ended June 30, 2020





Remotely
Operated
Vehicles


Subsea
Products


Subsea
Projects


Asset
Integrity


Advanced
Tech.


Unallocated
Expenses
and other


Total





($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP


$

5,975



$

9,068



$

845



$

(2,598)



$

9,707



$

(28,179)



$

(5,182)


Adjustments for the effects of:















Depreciation and amortization


22,892



10,024



4,597



190



634



361



38,698



Other pre-tax












(2,653)



(2,653)



EBITDA


28,867



19,092



5,442



(2,408)



10,341



(30,471)



30,863


Adjustments for the effects of:















Restructuring expenses and other


1,336



1,646



1,250



1,536



(235)



175



5,708



Foreign currency (gains) losses












3,908



3,908




Total of adjustments


1,336



1,646



1,250



1,536



(235)



4,083



9,616


Adjusted EBITDA


$

30,203



$

20,738



$

6,692



$

(872)



$

10,106



$

(26,388)



$

40,479



















Revenue


$

98,778



$

130,655



$

56,326



$

48,077



$

93,380





$

427,216


Operating income (loss) % as reported in accordance with GAAP


6

%


7

%


2

%


(5)

%


10

%




(1)

%

EBITDA Margin


29

%


15

%


10

%


(5)

%


11

%




7

%

Adjusted EBITDA Margin


31

%


16

%


12

%


(2)

%


11

%




9

%






















For the Three Months Ended June 30, 2019





Remotely
Operated
Vehicles


Subsea
Products


Subsea
Projects


Asset
Integrity


Advanced
Tech.


Unallocated
Expenses
and other


Total





($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP


$

8,688



$

7,413



$

87



$

(1,302)



$

7,241



$

(31,762)



$

(9,635)


Adjustments for the effects of:















Depreciation and amortization


26,871



12,366



7,550



1,570



765



1,182



50,304



Other pre-tax












(328)



(328)



EBITDA


35,559



19,779



7,637



268



8,006



(30,908)



40,341


Adjustments for the effects of:















Foreign currency (gains) losses












(59)



(59)




Total of adjustments












(59)



(59)


Adjusted EBITDA


$

35,559



$

19,779



$

7,637



$

268



$

8,006



$

(30,967)



$

40,282



















Revenue


$

120,363



$

138,910



$

75,104



$

61,156



$

100,248





$

495,781


Operating income (loss) % as reported in accordance with GAAP


7

%


5

%


%


(2)

%


7

%




(2)

%

EBITDA Margin


30

%


14

%


10

%


%


8

%




8

%

Adjusted EBITDA Margin


30

%


14

%


10

%


%


8

%




8

%

 




EBITDA and Adjusted EBITDA and Margins by Segment






For the Three Months Ended March 31, 2020





Remotely
Operated
Vehicles


Subsea
Products


Subsea
Projects


Asset
Integrity


Advanced
Tech.


Unallocated
Expenses
and other


Total





($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP


$

9,066



$

(91,858)



$

(145,290)



$

(109,441)



$

(10,585)



$

(32,649)



$

(380,757)


Adjustments for the effects of:















Depreciation and amortization


25,725



62,454



143,346



111,385



12,178



1,108



356,196



Other pre-tax












(6,264)



(6,264)



EBITDA


34,791



(29,404)



(1,944)



1,944



1,593



(37,805)



(30,825)


Adjustments for the effects of:















Long-lived assets impairments




54,859



7,689





6,215





68,763



Restructuring expenses and other


713



1,668



1,480



1,694



795



280



6,630



Foreign currency (gains) losses












7,050



7,050




Total of adjustments


713



56,527



9,169



1,694



7,010



7,330



82,443


Adjusted EBITDA


$

35,504



$

27,123



$

7,225



$

3,638



$

8,603



$

(30,475)



$

51,618



















Revenue


$

111,780



$

194,838



$

61,455



$

59,132



$

109,463





$

536,668


Operating income (loss) % as reported in accordance with GAAP


8

%


(47)

%


(236)

%


(185)

%


(10)

%




(71)

%

EBITDA Margin


31

%


(15)

%


(3)

%


3

%


1

%




(6)

%

Adjusted EBITDA Margin


32

%


14

%


12

%


6

%


8

%




10

%

 




EBITDA and Adjusted EBITDA and Margins by Segment






For the Six Months Ended June 30, 2020





Remotely
Operated
Vehicles


Subsea
Products


Subsea
Projects


Asset
Integrity


Advanced
Tech.


Unallocated
Expenses
and other


Total





($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP


$

15,041



$

(82,790)



$

(144,445)



$

(112,039)



$

(878)



$

(60,828)



$

(385,939)


Adjustments for the effects of:















Depreciation and amortization


48,617



72,478



147,943



111,575



12,812



1,469



394,894



Other pre-tax












(8,917)



(8,917)



EBITDA


63,658



(10,312)



3,498



(464)



11,934



(68,276)



38


Adjustments for the effects of:















Long-lived assets impairments




54,859



7,689





6,215





68,763



Restructuring expenses and other


2,049



3,314



2,730



3,230



560



455



12,338



Foreign currency (gains) losses












10,958



10,958




Total of adjustments


2,049



58,173



10,419



3,230



6,775



11,413



92,059


Adjusted EBITDA


$

65,707



$

47,861



$

13,917



$

2,766



$

18,709



$

(56,863)



$

92,097



















Revenue


$

210,558



$

325,493



$

117,781



$

107,209



$

202,843





$

963,884


Operating income (loss) % as reported in accordance with GAAP


7

%


(25)

%


(123)

%


(105)

%


%




(40)

%

EBITDA Margin


30

%


(3)

%


3

%


%


6

%




%

Adjusted EBITDA Margin


31

%


15

%


12

%


3

%


9

%




10

%






















For the Six Months Ended June 30, 2019





Remotely
Operated
Vehicles


Subsea
Products


Subsea
Projects


Asset
Integrity


Advanced
Tech.


Unallocated
Expenses
and other


Total





($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP


$

10,106



$

6,937



$

2,979



$

(2,015)



$

16,840



$

(66,196)



$

(31,349)


Adjustments for the effects of:















Depreciation and amortization


54,861



25,357



15,432



3,204



1,595



2,341



102,790



Other pre-tax












(113)



(113)



EBITDA


64,967



32,294



18,411



1,189



18,435



(63,968)



71,328


Adjustments for the effects of:















Foreign currency (gains) losses












(673)



(673)




Total of adjustments












(673)



(673)


Adjusted EBITDA


$

64,967



$

32,294



$

18,411



$

1,189



$

18,435



$

(64,641)



$

70,655



















Revenue


$

220,709



$

267,754



$

164,832



$

121,845



$

214,527





$

989,667


Operating income (loss) % as reported in accordance with GAAP


5

%


3

%


2

%


(2)

%


8

%




(3)

%

EBITDA Margin


29

%


12

%


11

%


1

%


9

%




7

%

Adjusted EBITDA Margin


29

%


12

%


11

%


1

%


9

%




7

%

 

Cision View original content:http://www.prnewswire.com/news-releases/oceaneering-reports-second-quarter-2020-results-301102562.html

SOURCE Oceaneering International, Inc.