Attached files
| file | filename |
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| 8-K - 8-K EARNINGS RELEASE DEC 2016 AND DIVIDEND - OCEANEERING INTERNATIONAL INC | a8-k_earningsxreleasex4q20.htm |
| EX-99.2 - EXHIBIT 99.2 DIVIDEND PRESS RELEASE 4Q 2016 - OCEANEERING INTERNATIONAL INC | exhibit9928k4q2016.htm |
Exhibit 99.1
Oceaneering Reports Fourth Quarter and Full Year 2016 Results
HOUSTON, February 8, 2017 – Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today reported a net loss of $11.0 million, or $(0.11) per share, on revenue of $488 million for the three months ended December 31, 2016. Adjusted net income was $2.6 million, or $0.03 per share, excluding $12.9 million of pre-tax charges and an increase in the annual effective income tax rate recognized during the quarter. During the prior quarter ended September 30, 2016, Oceaneering reported a net loss of $11.8 million, or $(0.12) per share, on revenue of $549 million, and adjusted net income of $16.6 million, or $0.17 per share.
For the full year 2016, Oceaneering reported net income of $24.6 million, or $0.25 per share, on revenue of $2.3 billion. Adjusted net income was $74.8 million, or $0.76 per share, excluding the $50.2 million after-tax impact of asset write-downs, restructuring expenses, allowances for bad debts and foreign currency losses, and higher-than-expected effective tax rate recognized during the year. This compared to 2015 net income of $231 million, or $2.34 per share, on revenue of $3.1 billion, and adjusted net income of $284 million, or $2.87 per share.
Adjusted operating income, net income, earnings per share, and EBITDA and margins are non-GAAP measures which exclude the impacts of certain identified items. Reconciliations to the corresponding GAAP measures are shown in the tables Adjusted Net Income and Diluted Earnings per Share (EPS), Adjusted Operating Income 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 | Years Ended | |||||||||||||||||||
Dec 31, | Sep 30, | Dec 31, | ||||||||||||||||||
2016 | 2015 | 2016 | 2016 | 2015 | ||||||||||||||||
Revenue | $ | 488,445 | $ | 722,066 | $ | 549,275 | $ | 2,271,603 | $ | 3,062,754 | ||||||||||
Gross Margin | 51,071 | 106,122 | 35,443 | 279,227 | 605,429 | |||||||||||||||
Income (Loss) from Operations | (3,859 | ) | 45,756 | (11,856 | ) | 70,764 | 373,810 | |||||||||||||
Net Income (Loss) | $ | (11,028 | ) | $ | 27,505 | $ | (11,798 | ) | $ | 24,586 | $ | 231,011 | ||||||||
Diluted Earnings Per Share (EPS) | $ | (0.11 | ) | $ | 0.28 | $ | (0.12 | ) | $ | 0.25 | $ | 2.34 | ||||||||
For the fourth quarter, adjusted operating income was $21.6 million lower than that of the immediately preceding quarter due to reduced profit contributions from most of Oceaneering's segments, with the exception of Asset Integrity. Almost one-half of the decline was driven by lower activity levels and profitability in Subsea Projects. The increase in the 2016 effective tax rate was primarily due to a change in the mix of income or losses between the U.S. and certain foreign jurisdictions. This resulted in a recapture of prior year U.S. manufacturing deductions and a limitation of the current benefit from certain foreign tax payments.
M. Kevin McEvoy, Chief Executive Officer of Oceaneering, stated, "Our fourth quarter operating results on an adjusted basis approximated our expectations and the consensus estimate. As industry conditions
remained challenging, and our outlook for 2017 does not assume a pronounced recovery in demand for our services and products, our focus has been on organizing more effectively and managing our cost structure. Accordingly, these restructuring steps included a sizable reduction in our workforce. We made these difficult decisions to enable our organization to be leaner and appropriately sized for the expected level of business.
"We believe our demonstrated cash flow generating capabilities and liquidity (including $450 million in cash at year end and a $500 million revolving credit facility) provide us ample resources not only to manage our business through the prolonged downturn in offshore activity, but also to position ourselves for the eventual upcycle. We intend to continue investing in our current and adjacent market niches, with more focus on our customers' operating expenditures and the production phase of the offshore oilfield life cycle.
"Compared to the third quarter, on an adjusted basis, ROV operating income was down, resulting from a 14% reduction of revenue and 16% fewer days utilized. For the fourth quarter, ROV adjusted EBITDA margins remained respectable at 35%, compared to 36% in the third quarter.
"During the fourth quarter we added one new ROV to our fleet, ending the year with a total of 280 vehicles. Our fleet utilization for the fourth quarter was 50%. Our drill support market share during this period was 53% of the 151 floating rigs under contract. As in recent quarters, the decline in the utilization percentage of our ROV fleet is attributable to the reduced number of working floating drilling rigs, and an overall low level of deepwater vessel activity. While we endeavor to place more of our ROVs on vessels, we need a sizable increase in our customers' offshore spending levels for there to be a discernible increase in ROV fleet utilization and profitability.
"Sequentially, Subsea Products operating income, on an adjusted basis, declined as expected, due to lower margins on Manufactured Products as we processed backlog and new orders with lower pricing. Our Subsea Products backlog at December 31, 2016 was $431 million, compared to our September 30, 2016 backlog of $457 million. The backlog decline was primarily related to umbilicals. Our book-to-bill ratio was 0.82 and 0.68 for the fourth quarter and full year of 2016, respectively.
"Compared to the third quarter, Subsea Projects adjusted operating income was down substantially due to a lower contribution from our diving operations, lower vessel pricing, the previously scheduled drydock of the Ocean Patriot, and a seasonal decrease in survey work in the Gulf of Mexico. Asset Integrity adjusted operating income was up, due to better execution in the completion of several jobs. Advanced Technologies operating income declined, primarily due to a seasonal slowdown in work for the U.S. Navy. Unallocated Expenses were essentially flat.
"Looking forward, we are projecting a further decline in our profitability and to be marginally profitable at the operating income level on a consolidated basis for 2017. Below the operating income line, we are projecting a loss from our equity investment in the Medusa Spar as production has declined, and our interest expense is expected to be slightly higher in 2017 than 2016 due to higher rates and less interest being capitalized.
"Operationally, we anticipate declines in profitability to occur in ROVs and Subsea Products, due primarily to the relatively strong adjusted operating results generated by these segments during the first half of 2016. We expect our Subsea Products operating margins to be in the mid- to high-single digit range considering the cost restructuring measures taken during the fourth quarter. Our Subsea Projects segment is expected to have another challenging year with reduced vessel activity offshore Angola, and continued competitive pressures on vessel dayrates in the spot "call out" market in the Gulf of Mexico. Asset Integrity results are projected to be down slightly year-over-year. For Advanced Technologies, operating income should improve due to a meaningful increase in activity and profit contribution levels within the commercial theme park arena, if the expected projects come to fruition. We expect higher
Unallocated Expenses in 2017, as 2016 results included the impact of reversing earlier accruals associated with our long-term incentive compensation plans, as it became evident during the year our performance targets would not be achieved.
"We believe our first quarter 2017 results will be considerably lower than our adjusted fourth quarter results due to a continuation of weak demand for our services and products, exacerbated by seasonality. We expect sequentially lower operating income primarily from our Asset Integrity business segment, and higher Unallocated Expenses. We also expect a discrete additional income tax provision in accordance with a new accounting standard associated with our share based incentive plan.
"For 2017, we expect our organic capital expenditures to total between $90 million and $120 million, including approximately $55 million to $65 million of maintenance capital expenditure and some amounts required to complete the Jones Act vessel Ocean Evolution and the well intervention equipment recently purchased as part of our Blue Ocean Technologies acquisition. At an operating income break-even level, and with this level of organic growth, we should still generate a substantial amount of free cash flow in 2017.
"Beyond 2017, with stable and improving oil prices, we foresee an increase in deepwater expenditures and improving demand for our services and products. Meanwhile, we continue to adjust our organization to be commensurate with the existing level of our business, and look for opportunities to resume growth organically and via acquisitions, while providing a dividend to shareholders."
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 and future expected business, financial performance and prospects of the Company. More specifically, the forward-looking statements in this press release include the statements concerning Oceaneering’s: belief that its restructuring steps will enable it to be leaner and appropriately sized for the expected level of business; belief that its demonstrated cash flow generating capabilities, liquidity, and credit facility provide it with ample resources to manage its business through the prolonged downturn in offshore activity and to position itself for the eventual upcycle; characterization of an upcycle as eventual; intention to invest in current and adjacent market niches, focusing more on its customers' operating expenditures and the production phase of the offshore oilfield life cycle; endeavors to place more ROVs on vessels; belief that it needs a sizable increase in its customers' offshore spending levels for there to be a discernible increase in its ROV fleet utilization and profitability; statements about backlog, to the extent it may be an indicator of future revenue or profitability; outlook for the full year and first quarter of 2017, and expected contributions of its segments to the operating results and the associated explanations; expectation about Subsea Products margins; our expectation that Advanced Technologies operating income should improve due to a meaningful increase in activity and profit contribution levels within the commercial theme park arena, if the expected projects come to fruition; expectations about higher interest rates and less interest being capitalized; expectation for a discrete additional income tax provision in accordance with a new accounting standard associated with its share base incentive plan; expectations about capital expenditures; expectations about free cash flow generation; expectations about deepwater expenditures and improving demand for its services and products; expectation to continue to adjust its organization to be commensurate with the existing level of its business; and intention to look for opportunities to resume growth organically and via acquisitions, while providing a dividend to shareholders. 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 backlog, costs, capital expenditures, future earnings, capital allocation strategies, dividend levels, sustainability of dividend levels, liquidity, competitive position, financial flexibility, debt levels, forecasts or expectations regarding business outlook; growth for Oceaneering as a whole and for each of its segments (and for specific products or geographic areas within each segment); factors affecting the level of activity in the oil and gas industry; supply and demand of drilling rigs; oil and natural
gas demand and production growth; oil and natural gas prices; fluctuations in currency markets worldwide; the loss of major contracts or alliances; future global economic conditions; and future results of operations. For a more complete discussion of these risk factors, please see Oceaneering’s latest annual report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.
Oceaneering is a global provider of engineered services and products, primarily to the offshore oil and gas industry, with a focus on deepwater applications. 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:
Suzanne Spera
Director, Investor Relations
Oceaneering International, Inc.
713-329-4707
investorrelations@oceaneering.com
- Tables follow on next page -
OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||||||||||||
Dec 31, 2016 | Dec 31, 2015 | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||
Current Assets (including cash and cash equivalents of $450,193 and $385,235) | $ | 1,262,595 | $ | 1,517,493 | |||||||||||||||||||||||||
Net Property and Equipment | 1,153,258 | 1,266,731 | |||||||||||||||||||||||||||
Other Assets | 714,462 | 645,312 | |||||||||||||||||||||||||||
TOTAL ASSETS | $ | 3,130,315 | $ | 3,429,536 | |||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||
Current Liabilities | $ | 508,364 | $ | 615,956 | |||||||||||||||||||||||||
Long-term Debt | 793,058 | 795,836 | |||||||||||||||||||||||||||
Other Long-term Liabilities | 312,250 | 439,010 | |||||||||||||||||||||||||||
Shareholders' Equity | 1,516,643 | 1,578,734 | |||||||||||||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 3,130,315 | $ | 3,429,536 | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||||||||
For the Three Months Ended | For the Year Ended | ||||||||||||||||||||||||||||
Dec 31, 2016 | Dec 31, 2015 | Sep 30, 2016 | Dec 31, 2016 | Dec 31, 2015 | |||||||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||||||||||
Revenue | $ | 488,445 | $ | 722,066 | $ | 549,275 | $ | 2,271,603 | $ | 3,062,754 | |||||||||||||||||||
Cost of services and products | 437,374 | 615,944 | 513,832 | 1,992,376 | 2,457,325 | ||||||||||||||||||||||||
Gross Margin | 51,071 | 106,122 | 35,443 | 279,227 | 605,429 | ||||||||||||||||||||||||
Selling, general and administrative expense | 54,930 | 60,366 | 47,299 | 208,463 | 231,619 | ||||||||||||||||||||||||
Income (loss) from Operations | (3,859 | ) | 45,756 | (11,856 | ) | 70,764 | 373,810 | ||||||||||||||||||||||
Interest income | 1,479 | 171 | 684 | 3,900 | 607 | ||||||||||||||||||||||||
Interest expense | (6,394 | ) | (6,354 | ) | (6,325 | ) | (25,318 | ) | (25,050 | ) | |||||||||||||||||||
Equity earnings (losses) of unconsolidated affiliates | (299 | ) | 917 | (246 | ) | 244 | 2,230 | ||||||||||||||||||||||
Other income (expense), net | 579 | (453 | ) | 570 | (6,244 | ) | (15,336 | ) | |||||||||||||||||||||
Income before Income Taxes | (8,494 | ) | 40,037 | (17,173 | ) | 43,346 | 336,261 | ||||||||||||||||||||||
Provision for income taxes (benefit) | 2,534 | 12,532 | (5,375 | ) | 18,760 | 105,250 | |||||||||||||||||||||||
Net Income (loss) | $ | (11,028 | ) | $ | 27,505 | $ | (11,798 | ) | $ | 24,586 | $ | 231,011 | |||||||||||||||||
Weighted average diluted shares outstanding | 98,064 | 98,268 | 98,061 | 98,424 | 98,808 | ||||||||||||||||||||||||
Diluted Earnings (Loss) per Share | $ | (0.11 | ) | $ | 0.28 | $ | (0.12 | ) | $ | 0.25 | $ | 2.34 | |||||||||||||||||
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 Year Ended | |||||||||||||||||||||||
Dec 31, 2016 | Dec 31, 2015 | Sep 30, 2016 | Dec 31, 2016 | Dec 31, 2015 | ||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||
Remotely Operated Vehicles | Revenue | $ | 108,352 | $ | 173,424 | $ | 126,507 | $ | 522,121 | $ | 807,723 | |||||||||||||
Gross Margin | $ | 13,079 | $ | 25,206 | $ | (16,288 | ) | $ | 59,038 | $ | 227,330 | |||||||||||||
Operating Income (Loss) | $ | 4,031 | $ | 16,621 | $ | (23,845 | ) | $ | 25,193 | $ | 192,514 | |||||||||||||
Operating Income (Loss) % | 4 | % | 10 | % | (19 | )% | 5 | % | 24 | % | ||||||||||||||
Days available | 25,684 | 30,323 | 29,126 | 112,588 | 121,944 | |||||||||||||||||||
Days utilized | 12,745 | 18,760 | 15,156 | 59,963 | 83,838 | |||||||||||||||||||
Utilization % | 50 | % | 62 | % | 52 | % | 53 | % | 69 | % | ||||||||||||||
Subsea Products | Revenue | $ | 149,052 | $ | 258,889 | $ | 157,269 | $ | 692,030 | $ | 959,714 | |||||||||||||
Gross Margin | $ | 20,988 | $ | 61,445 | $ | 20,423 | $ | 140,275 | $ | 257,755 | ||||||||||||||
Operating Income | $ | 4,068 | $ | 37,206 | $ | 6,109 | $ | 75,938 | $ | 175,585 | ||||||||||||||
Operating Income % | 3 | % | 14 | % | 4 | % | 11 | % | 18 | % | ||||||||||||||
Backlog at end of period | $ | 431,000 | $ | 652,000 | $ | 457,000 | $ | 431,000 | $ | 652,000 | ||||||||||||||
Subsea Projects | Revenue | $ | 94,096 | $ | 131,397 | $ | 110,799 | $ | 472,979 | $ | 604,484 | |||||||||||||
Gross Margin | $ | 6,245 | $ | 15,953 | $ | 19,321 | $ | 51,392 | $ | 114,672 | ||||||||||||||
Operating Income | $ | 2,421 | $ | 10,310 | $ | 15,029 | $ | 34,476 | $ | 92,034 | ||||||||||||||
Operating Income % | 3 | % | 8 | % | 14 | % | 7 | % | 15 | % | ||||||||||||||
Asset Integrity | Revenue | $ | 59,938 | $ | 83,346 | $ | 71,995 | $ | 275,397 | $ | 372,957 | |||||||||||||
Gross Margin | $ | 12,428 | $ | 7,784 | $ | 11,591 | $ | 41,458 | $ | 47,342 | ||||||||||||||
Operating Income | $ | 3,197 | $ | 85 | $ | 4,725 | $ | 7,551 | $ | 18,235 | ||||||||||||||
Operating Income % | 5 | % | — | % | 7 | % | 3 | % | 5 | % | ||||||||||||||
Advanced Technologies | Revenue | $ | 77,007 | $ | 75,010 | $ | 82,705 | $ | 309,076 | $ | 317,876 | |||||||||||||
Gross Margin | $ | 7,692 | $ | 2,715 | $ | 9,665 | $ | 33,784 | $ | 30,034 | ||||||||||||||
Operating Income (Loss) | $ | 1,331 | $ | (3,233 | ) | $ | 4,357 | $ | 11,809 | $ | 9,689 | |||||||||||||
Operating Income (Loss) % | 2 | % | (4 | )% | 5 | % | 4 | % | 3 | % | ||||||||||||||
Unallocated Expenses | ||||||||||||||||||||||||
Gross Margin | $ | (9,361 | ) | $ | (6,981 | ) | $ | (9,269 | ) | $ | (46,720 | ) | $ | (71,704 | ) | |||||||||
Operating Income | $ | (18,907 | ) | $ | (15,233 | ) | $ | (18,231 | ) | $ | (84,203 | ) | $ | (114,247 | ) | |||||||||
TOTAL | Revenue | $ | 488,445 | $ | 722,066 | $ | 549,275 | $ | 2,271,603 | $ | 3,062,754 | |||||||||||||
Gross Margin | $ | 51,071 | $ | 106,122 | $ | 35,443 | $ | 279,227 | $ | 605,429 | ||||||||||||||
Operating Income (Loss) | $ | (3,859 | ) | $ | 45,756 | $ | (11,856 | ) | $ | 70,764 | $ | 373,810 | ||||||||||||
Operating Income (Loss) % | (1 | )% | 6 | % | (2 | )% | 3 | % | 12 | % | ||||||||||||||
SELECTED CASH FLOW INFORMATION | ||||||||||||||||||||||||
For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||
Dec 31, 2016 | Dec 31, 2015 | Sep 30, 2016 | Dec 31, 2016 | Dec 31, 2015 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Capital expenditures, including acquisitions | $ | 56,624 | $ | 54,801 | $ | 32,945 | $ | 142,513 | $ | 423,988 | ||||||||||||||
Depreciation and Amortization: | ||||||||||||||||||||||||
Oilfield | ||||||||||||||||||||||||
Remotely Operated Vehicles | $ | 29,552 | $ | 36,128 | $ | 43,705 | $ | 140,967 | $ | 143,364 | ||||||||||||||
Subsea Products | 13,795 | 11,545 | 14,205 | 53,759 | 49,792 | |||||||||||||||||||
Subsea Projects | 8,595 | 5,723 | 8,575 | 34,042 | 29,863 | |||||||||||||||||||
Asset Integrity | 2,600 | 2,491 | 5,980 | 14,336 | 10,713 | |||||||||||||||||||
Total Oilfield | 54,542 | 55,887 | 72,465 | 243,104 | 233,732 | |||||||||||||||||||
Advanced Technologies | 791 | 670 | 789 | 3,120 | 2,549 | |||||||||||||||||||
Unallocated Expenses | 954 | 1,170 | 946 | 4,023 | 4,954 | |||||||||||||||||||
Total depreciation and amortization | $ | 56,287 | $ | 57,727 | $ | 74,200 | $ | 250,247 | $ | 241,235 | ||||||||||||||
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 and Diluted Earnings 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, 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.
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | |||||||||||||||||||||||||||
(continued) | |||||||||||||||||||||||||||
Adjusted Net Income and Diluted Earnings per Share (EPS) | |||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||
Dec 31, 2016 | Dec 31, 2015 | Sep 30, 2016 | |||||||||||||||||||||||||
Net Income | Diluted EPS | Net Income | Diluted EPS | Net Income | Diluted EPS | ||||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||||||||
Net Income (Loss) and Diluted EPS as reported in accordance with GAAP | $ | (11,028 | ) | $ | (0.11 | ) | $ | 27,505 | $ | 0.28 | $ | (11,798 | ) | $ | (0.12 | ) | |||||||||||
Pre tax adjustments for the effects of: | |||||||||||||||||||||||||||
Inventory write-downs | — | 16,965 | 30,490 | ||||||||||||||||||||||||
Restructuring expenses | 11,809 | 13,692 | — | ||||||||||||||||||||||||
Fixed asset write-offs | — | 2,911 | 13,790 | ||||||||||||||||||||||||
Non-current asset reserve | — | 6,583 | — | ||||||||||||||||||||||||
Allowance for bad debts | 2,827 | 4,851 | — | ||||||||||||||||||||||||
Foreign currency (gains) losses | (1,689 | ) | 938 | (643 | ) | ||||||||||||||||||||||
Total pre tax adjustments | 12,947 | 45,940 | 43,637 | ||||||||||||||||||||||||
Tax effect on pre tax adjustments at the 35% statutory rate | (4,531 | ) | (16,079 | ) | (15,273 | ) | |||||||||||||||||||||
Difference in tax provision on income before taxes in accordance with GAAP | 5,193 | — | — | ||||||||||||||||||||||||
Total of adjustments | 13,609 | 29,861 | 28,364 | ||||||||||||||||||||||||
Adjusted amounts | $ | 2,581 | $ | 0.03 | $ | 57,366 | $ | 0.58 | $ | 16,566 | $ | 0.17 | |||||||||||||||
For the Years Ended | |||||||||||||||||||||||||||
Dec 31, 2016 | Dec 31, 2015 | ||||||||||||||||||||||||||
Net Income | Diluted EPS | Net Income | Diluted EPS | ||||||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||||||||
Net Income and Diluted EPS as reported in accordance with GAAP | $ | 24,586 | $ | 0.25 | $ | 231,011 | $ | 2.34 | |||||||||||||||||||
Pre tax adjustments for the effects of: | |||||||||||||||||||||||||||
Inventory write-downs | 30,490 | 25,990 | |||||||||||||||||||||||||
Restructuring expenses | 11,809 | 25,404 | |||||||||||||||||||||||||
Allowance for bad debts | 8,396 | 4,851 | |||||||||||||||||||||||||
Non-current asset reserve | — | 6,583 | |||||||||||||||||||||||||
Fixed asset write-offs | 13,790 | 2,911 | |||||||||||||||||||||||||
Foreign currency losses | 4,770 | 15,360 | |||||||||||||||||||||||||
Total pre tax adjustments | 69,255 | 81,099 | |||||||||||||||||||||||||
Tax effect on pre tax adjustments at the 35% statutory rate | (24,239 | ) | (28,385 | ) | |||||||||||||||||||||||
Difference in tax provision on income before taxes in accordance with GAAP | 5,193 | — | |||||||||||||||||||||||||
Total of adjustments | 50,209 | 52,714 | |||||||||||||||||||||||||
Adjusted amounts | $ | 74,795 | $ | 0.76 | $ | 283,725 | $ | 2.87 | |||||||||||||||||||
Notes: | |||||||||||||||||||||||||||
Weighted average number of diluted shares in each period presented is the same for each adjusting item as used in accordance with GAAP for that period, except for the three-month periods ended December 31, 2016 and September 30, 2016, where we used 98,542,000 and 98,444,000, respectively, instead of the GAAP shares of 98,064,000 and 98,061,000, respectively, as our share equivalents became dilutive based on the amount of adjusted net income. | |||||||||||||||||||||||||||
For consistency in presentation, the difference in tax provision on income before taxes in accordance with GAAP is computed using our historical effective rate of 31.3% and the rate in effect for GAAP for the respective periods. | |||||||||||||||||||||||||||
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | |||||||||||||||||||||||||||
(continued) | |||||||||||||||||||||||||||
EBITDA and EBITDA Margins | |||||||||||||||||||||||||||
For the Three Months Ended | For the Year Ended | ||||||||||||||||||||||||||
Dec 31, 2016 | Dec 31, 2015 | Sep 30, 2016 | Dec 31, 2016 | Dec 31, 2015 | |||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||||
Net Income (Loss) | $ | (11,028 | ) | $ | 27,505 | $ | (11,798 | ) | $ | 24,586 | $ | 231,011 | |||||||||||||||
Depreciation and Amortization | 56,287 | 57,727 | 74,200 | 250,247 | 241,235 | ||||||||||||||||||||||
Subtotal | 45,259 | 85,232 | 62,402 | 274,833 | 472,246 | ||||||||||||||||||||||
Interest Expense, net of Interest Income | 4,915 | 6,183 | 5,641 | 21,418 | 24,443 | ||||||||||||||||||||||
Amortization included in Interest Expense | (285 | ) | (280 | ) | (287 | ) | (1,145 | ) | (1,077 | ) | |||||||||||||||||
Provision for Income Taxes (Benefit) | 2,534 | 12,532 | (5,375 | ) | 18,760 | 105,250 | |||||||||||||||||||||
EBITDA | $ | 52,423 | $ | 103,667 | $ | 62,381 | $ | 313,866 | $ | 600,862 | |||||||||||||||||
Revenue | $ | 488,445 | $ | 722,066 | $ | 549,275 | $ | 2,271,603 | $ | 3,062,754 | |||||||||||||||||
EBITDA margin % | 11 | % | 14 | % | 11 | % | 14 | % | 20 | % | |||||||||||||||||
Free Cash Flow | |||||||||||||||
For the Year Ended | |||||||||||||||
Dec 31, 2016 | Dec 31, 2015 | ||||||||||||||
(in thousands) | |||||||||||||||
Net Income | $ | 24,586 | $ | 231,011 | |||||||||||
Depreciation and amortization | 250,247 | 241,235 | |||||||||||||
Other increases in cash from operating activities | 65,689 | 88,162 | |||||||||||||
Cash flow provided by operating activities | 340,522 | 560,408 | |||||||||||||
Purchases of property and equipment | (112,392 | ) | (199,970 | ) | |||||||||||
Free Cash Flow | $ | 228,130 | $ | 360,438 | |||||||||||
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
(continued) | ||||||||||||||||||||||||||||||
Adjusted Operating Income and Margins by Segment | ||||||||||||||||||||||||||||||
For the Three Months Ended December 31, 2016 | ||||||||||||||||||||||||||||||
Remotely Operated Vehicles | Subsea Products | Subsea Projects | Asset Integrity | Advanced Tech. | Unalloc. Expenses | Total | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||
Operating income (loss) as reported in accordance with GAAP | $ | 4,031 | $ | 4,068 | $ | 2,421 | $ | 3,197 | $ | 1,331 | $ | (18,907 | ) | $ | (3,859 | ) | ||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Restructuring expenses | 3,786 | 3,730 | 2,054 | 1,388 | 532 | 319 | 11,809 | |||||||||||||||||||||||
Allowance for bad debts | 855 | 97 | 194 | 1,681 | — | — | 2,827 | |||||||||||||||||||||||
Total of adjustments | 4,641 | 3,827 | 2,248 | 3,069 | 532 | 319 | 14,636 | |||||||||||||||||||||||
Adjusted amounts | $ | 8,672 | $ | 7,895 | $ | 4,669 | $ | 6,266 | $ | 1,863 | $ | (18,588 | ) | $ | 10,777 | |||||||||||||||
Revenue | $ | 108,352 | $ | 149,052 | $ | 94,096 | $ | 59,938 | $ | 77,007 | $ | 488,445 | ||||||||||||||||||
Operating income (loss) % as reported in accordance with GAAP | 4 | % | 3 | % | 3 | % | 5 | % | 2 | % | (1 | )% | ||||||||||||||||||
Operating income % using adjusted amounts | 8 | % | 5 | % | 5 | % | 10 | % | 2 | % | 2 | % | ||||||||||||||||||
For the Three Months Ended December 31, 2015 | ||||||||||||||||||||||||||||||
Remotely Operated Vehicles | Subsea Products | Subsea Projects | Asset Integrity | Advanced Tech. | Unalloc. Expenses | Total | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||
Operating income as reported in accordance with GAAP | $ | 16,621 | $ | 37,206 | $ | 10,310 | $ | 85 | $ | (3,233 | ) | $ | (15,233 | ) | $ | 45,756 | ||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Inventory write-downs | 15,705 | 1,260 | — | — | — | — | 16,965 | |||||||||||||||||||||||
Restructuring expenses | 3,130 | 4,966 | 1,846 | 3,670 | 47 | 33 | 13,692 | |||||||||||||||||||||||
Non-current asset reserve | — | 6,583 | — | — | — | — | 6,583 | |||||||||||||||||||||||
Allowance for bad debts | — | 4,851 | — | — | — | — | 4,851 | |||||||||||||||||||||||
Fixed asset write-offs | 2,911 | — | — | — | — | — | 2,911 | |||||||||||||||||||||||
Total of adjustments | 21,746 | 17,660 | 1,846 | 3,670 | 47 | 33 | 45,002 | |||||||||||||||||||||||
Adjusted amounts | $ | 38,367 | $ | 54,866 | $ | 12,156 | $ | 3,755 | $ | (3,186 | ) | $ | (15,200 | ) | $ | 90,758 | ||||||||||||||
Revenue | $ | 173,424 | $ | 258,889 | $ | 131,397 | $ | 83,346 | $ | 75,010 | $ | 722,066 | ||||||||||||||||||
Operating income (loss) % as reported in accordance with GAAP | 10 | % | 14 | % | 8 | % | 0 | % | (4 | )% | 6 | % | ||||||||||||||||||
Operating income (loss) % using adjusted amounts | 22 | % | 21 | % | 9 | % | 5 | % | (4 | )% | 13 | % | ||||||||||||||||||
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
(continued) | ||||||||||||||||||||||||||||||
Adjusted Operating Income and Margins by Segment | ||||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2016 | ||||||||||||||||||||||||||||||
Remotely Operated Vehicles | Subsea Products | Subsea Projects | Asset Integrity | Advanced Tech. | Unalloc. Expenses | Total | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||
Operating income (loss) as reported in accordance with GAAP | $ | (23,845 | ) | $ | 6,109 | $ | 15,029 | $ | 4,725 | $ | 4,357 | $ | (18,231 | ) | $ | (11,856 | ) | |||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Inventory write-downs | 25,200 | 5,290 | — | — | — | — | 30,490 | |||||||||||||||||||||||
Fixed asset write-offs | 10,840 | 2,950 | — | — | — | — | 13,790 | |||||||||||||||||||||||
Total of adjustments | 36,040 | 8,240 | — | — | — | — | 44,280 | |||||||||||||||||||||||
Adjusted amounts | $ | 12,195 | $ | 14,349 | $ | 15,029 | $ | 4,725 | $ | 4,357 | $ | (18,231 | ) | $ | 32,424 | |||||||||||||||
Revenue | $ | 126,507 | $ | 157,269 | $ | 110,799 | $ | 71,995 | $ | 82,705 | $ | 549,275 | ||||||||||||||||||
Operating income (loss) % as reported in accordance with GAAP | (19 | )% | 4 | % | 14 | % | 7 | % | 5 | % | (2 | )% | ||||||||||||||||||
Operating income % using adjusted amounts | 10 | % | 9 | % | 14 | % | 7 | % | 5 | % | 6 | % | ||||||||||||||||||
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
(continued) | ||||||||||||||||||||||||||||||
Adjusted Operating Income and Margins by Segment | ||||||||||||||||||||||||||||||
For the Year Ended December 31, 2016 | ||||||||||||||||||||||||||||||
Remotely Operated Vehicles | Subsea Products | Subsea Projects | Asset Integrity | Advanced Tech. | Unalloc. Expenses | Total | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||
Operating income as reported in accordance with GAAP | $ | 25,193 | $ | 75,938 | $ | 34,476 | $ | 7,551 | $ | 11,809 | $ | (84,203 | ) | $ | 70,764 | |||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Inventory write-downs | 25,200 | 5,290 | — | — | — | — | 30,490 | |||||||||||||||||||||||
Restructuring expenses | 3,786 | 3,730 | 2,054 | 1,388 | 532 | 319 | 11,809 | |||||||||||||||||||||||
Allowance for bad debts | 1,195 | 1,867 | 321 | 5,013 | — | — | 8,396 | |||||||||||||||||||||||
Fixed asset write-offs | 10,840 | 2,950 | — | — | — | — | 13,790 | |||||||||||||||||||||||
Total of adjustments | 41,021 | 13,837 | 2,375 | 6,401 | 532 | 319 | 64,485 | |||||||||||||||||||||||
Adjusted amounts | $ | 66,214 | $ | 89,775 | $ | 36,851 | $ | 13,952 | $ | 12,341 | $ | (83,884 | ) | $ | 135,249 | |||||||||||||||
Revenue | $ | 522,121 | $ | 692,030 | $ | 472,979 | $ | 275,397 | $ | 309,076 | $ | 2,271,603 | ||||||||||||||||||
Operating income % as reported in accordance with GAAP | 5 | % | 11 | % | 7 | % | 3 | % | 4 | % | 3 | % | ||||||||||||||||||
Operating income % using adjusted amounts | 13 | % | 13 | % | 8 | % | 5 | % | 4 | % | 6 | % | ||||||||||||||||||
For the Year Ended December 31, 2015 | ||||||||||||||||||||||||||||||
Remotely Operated Vehicles | Subsea Products | Subsea Projects | Asset Integrity | Advanced Tech. | Unalloc. Expenses | Total | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||
Operating income as reported in accordance with GAAP | $ | 192,514 | $ | 175,585 | $ | 92,034 | $ | 18,235 | $ | 9,689 | $ | (114,247 | ) | $ | 373,810 | |||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Inventory write-downs | 15,705 | 10,285 | — | — | — | — | 25,990 | |||||||||||||||||||||||
Restructuring expenses | 7,177 | 8,672 | 2,480 | 6,436 | 220 | 419 | 25,404 | |||||||||||||||||||||||
Non-current asset reserve | — | 6,583 | — | — | — | — | 6,583 | |||||||||||||||||||||||
Allowance for bad debts | — | 4,851 | — | — | — | — | 4,851 | |||||||||||||||||||||||
Fixed asset write-offs | 2,911 | — | — | — | — | — | 2,911 | |||||||||||||||||||||||
Total of adjustments | 25,793 | 30,391 | 2,480 | 6,436 | 220 | 419 | 65,739 | |||||||||||||||||||||||
Adjusted amounts | $ | 218,307 | $ | 205,976 | $ | 94,514 | $ | 24,671 | $ | 9,909 | $ | (113,828 | ) | $ | 439,549 | |||||||||||||||
Revenue | $ | 807,723 | $ | 959,714 | $ | 604,484 | $ | 372,957 | $ | 317,876 | $ | 3,062,754 | ||||||||||||||||||
Operating income % as reported in accordance with GAAP | 24 | % | 18 | % | 15 | % | 5 | % | 3 | % | 12 | % | ||||||||||||||||||
Operating income % using adjusted amounts | 27 | % | 21 | % | 16 | % | 7 | % | 3 | % | 14 | % | ||||||||||||||||||
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
(continued) | ||||||||||||||||||||||||||||||
EBITDA and Adjusted EBITDA and Margins by Segment | ||||||||||||||||||||||||||||||
For the Three Months Ended December 31, 2016 | ||||||||||||||||||||||||||||||
Remotely Operated Vehicles | Subsea Products | Subsea Projects | Asset Integrity | Advanced Tech. | Unalloc. Expenses and other | Total | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||
Operating income as reported in accordance with GAAP | $ | 4,031 | $ | 4,068 | $ | 2,421 | $ | 3,197 | $ | 1,331 | $ | (18,907 | ) | $ | (3,859 | ) | ||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Depreciation and amortization | 29,552 | 13,795 | 8,595 | 2,600 | 791 | 954 | 56,287 | |||||||||||||||||||||||
Other pre-tax | — | — | — | — | — | (5 | ) | (5 | ) | |||||||||||||||||||||
EBITDA | 33,583 | 17,863 | 11,016 | 5,797 | 2,122 | (17,958 | ) | 52,423 | ||||||||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Restructuring expenses | 3,786 | 3,730 | 2,054 | 1,388 | 532 | 319 | 11,809 | |||||||||||||||||||||||
Allowance for bad debts | 855 | 97 | 194 | 1,681 | — | — | 2,827 | |||||||||||||||||||||||
Foreign currency (gains) losses | — | — | — | — | — | (1,689 | ) | (1,689 | ) | |||||||||||||||||||||
Total of adjustments | 4,641 | 3,827 | 2,248 | 3,069 | 532 | (1,370 | ) | 12,947 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 38,224 | $ | 21,690 | $ | 13,264 | $ | 8,866 | $ | 2,654 | $ | (19,328 | ) | $ | 65,370 | |||||||||||||||
Revenue | $ | 108,352 | $ | 149,052 | $ | 94,096 | $ | 59,938 | $ | 77,007 | $ | 488,445 | ||||||||||||||||||
Operating income (loss) % as reported in accordance with GAAP | 4 | % | 3 | % | 3 | % | 5 | % | 2 | % | (1 | )% | ||||||||||||||||||
EBITDA Margin | 31 | % | 12 | % | 12 | % | 10 | % | 3 | % | 11 | % | ||||||||||||||||||
Adjusted EBITDA Margin | 35 | % | 15 | % | 14 | % | 15 | % | 3 | % | 13 | % | ||||||||||||||||||
For the Three Months Ended December 31, 2015 | ||||||||||||||||||||||||||||||
Remotely Operated Vehicles | Subsea Products | Subsea Projects | Asset Integrity | Advanced Tech. | Unalloc. Expenses and other | Total | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||
Operating income as reported in accordance with GAAP | $ | 16,621 | $ | 37,206 | $ | 10,310 | $ | 85 | $ | (3,233 | ) | $ | (15,233 | ) | $ | 45,756 | ||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Depreciation and amortization | 36,128 | 11,545 | 5,723 | 2,491 | 670 | 1,170 | 57,727 | |||||||||||||||||||||||
Other pre-tax | — | — | — | — | — | 184 | 184 | |||||||||||||||||||||||
EBITDA | 52,749 | 48,751 | 16,033 | 2,576 | (2,563 | ) | (13,879 | ) | 103,667 | |||||||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Inventory write-downs | 15,705 | 1,260 | — | — | — | — | 16,965 | |||||||||||||||||||||||
Restructuring expenses | 3,130 | 4,966 | 1,846 | 3,670 | 47 | 33 | 13,692 | |||||||||||||||||||||||
Non-current asset reserve | — | 6,583 | — | — | — | — | 6,583 | |||||||||||||||||||||||
Allowance for bad debts | — | 4,851 | — | — | — | — | 4,851 | |||||||||||||||||||||||
Foreign currency (gains) losses | — | — | — | — | — | 938 | 938 | |||||||||||||||||||||||
Total of adjustments | 18,835 | 17,660 | 1,846 | 3,670 | 47 | 971 | 43,029 | |||||||||||||||||||||||
Adjusted EBITDA | $ | 71,584 | $ | 66,411 | $ | 17,879 | $ | 6,246 | $ | (2,516 | ) | $ | (12,908 | ) | $ | 146,696 | ||||||||||||||
Revenue | $ | 173,424 | $ | 258,889 | $ | 131,397 | $ | 83,346 | $ | 75,010 | $ | 722,066 | ||||||||||||||||||
Operating income (loss) % as reported in accordance with GAAP | 10 | % | 14 | % | 8 | % | 0 | % | (4 | )% | 6 | % | ||||||||||||||||||
EBITDA Margin | 30 | % | 19 | % | 12 | % | 3 | % | (3 | )% | 14 | % | ||||||||||||||||||
Adjusted EBITDA Margin | 41 | % | 26 | % | 14 | % | 7 | % | (3 | )% | 20 | % | ||||||||||||||||||
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
(continued) | ||||||||||||||||||||||||||||||
EBITDA and Adjusted EBITDA and Margins by Segment | ||||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2016 | ||||||||||||||||||||||||||||||
Remotely Operated Vehicles | Subsea Products | Subsea Projects | Asset Integrity | Advanced Tech. | Unalloc. Expenses and other | Total | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||
Operating income as reported in accordance with GAAP | $ | (23,845 | ) | $ | 6,109 | $ | 15,029 | $ | 4,725 | $ | 4,357 | $ | (18,231 | ) | $ | (11,856 | ) | |||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Depreciation and amortization | 43,705 | 14,205 | 8,575 | 5,980 | 789 | 946 | 74,200 | |||||||||||||||||||||||
Other pre-tax | — | — | — | — | — | 37 | 37 | |||||||||||||||||||||||
EBITDA | 19,860 | 20,314 | 23,604 | 10,705 | 5,146 | (17,248 | ) | 62,381 | ||||||||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Inventory write-downs | 25,200 | 5,290 | — | — | — | — | 30,490 | |||||||||||||||||||||||
Foreign currency (gains) losses | — | — | — | — | — | (643 | ) | (643 | ) | |||||||||||||||||||||
Total of adjustments | 25,200 | 5,290 | — | — | — | (643 | ) | 29,847 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 45,060 | $ | 25,604 | $ | 23,604 | $ | 10,705 | $ | 5,146 | $ | (17,891 | ) | $ | 92,228 | |||||||||||||||
Revenue | $ | 126,507 | $ | 157,269 | $ | 110,799 | $ | 71,995 | $ | 82,705 | $ | 549,275 | ||||||||||||||||||
Operating income (loss) % as reported in accordance with GAAP | (19 | )% | 4 | % | 14 | % | 7 | % | 5 | % | (2 | )% | ||||||||||||||||||
EBITDA Margin | 16 | % | 13 | % | 21 | % | 15 | % | 6 | % | 11 | % | ||||||||||||||||||
Adjusted EBITDA Margin | 36 | % | 16 | % | 21 | % | 15 | % | 6 | % | 17 | % | ||||||||||||||||||
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
(continued) | ||||||||||||||||||||||||||||||
EBITDA and Adjusted EBITDA and Margins by Segment | ||||||||||||||||||||||||||||||
For the Year Ended December 31, 2016 | ||||||||||||||||||||||||||||||
Remotely Operated Vehicles | Subsea Products | Subsea Projects | Asset Integrity | Advanced Tech. | Unalloc. Expenses and other | Total | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||
Operating income as reported in accordance with GAAP | $ | 25,193 | $ | 75,938 | $ | 34,476 | $ | 7,551 | $ | 11,809 | $ | (84,203 | ) | $ | 70,764 | |||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Depreciation and amortization | 140,967 | 53,759 | 34,042 | 14,336 | 3,120 | 4,023 | 250,247 | |||||||||||||||||||||||
Other pre-tax | — | — | — | — | — | (7,145 | ) | (7,145 | ) | |||||||||||||||||||||
EBITDA | 166,160 | 129,697 | 68,518 | 21,887 | 14,929 | (87,325 | ) | 313,866 | ||||||||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Inventory write-downs | 25,200 | 5,290 | — | — | — | — | 30,490 | |||||||||||||||||||||||
Restructuring expenses | 3,786 | 3,730 | 2,054 | 1,388 | 532 | 319 | 11,809 | |||||||||||||||||||||||
Allowance for bad debts | 1,195 | 1,867 | 321 | 5,013 | — | — | 8,396 | |||||||||||||||||||||||
Foreign currency (gains) losses | — | — | — | — | — | 4,770 | 4,770 | |||||||||||||||||||||||
Total of adjustments | 30,181 | 10,887 | 2,375 | 6,401 | 532 | 5,089 | 55,465 | |||||||||||||||||||||||
Adjusted EBITDA | $ | 196,341 | $ | 140,584 | $ | 70,893 | $ | 28,288 | $ | 15,461 | $ | (82,236 | ) | $ | 369,331 | |||||||||||||||
Revenue | $ | 522,121 | $ | 692,030 | $ | 472,979 | $ | 275,397 | $ | 309,076 | $ | 2,271,603 | ||||||||||||||||||
Operating income % as reported in accordance with GAAP | 5 | % | 11 | % | 7 | % | 3 | % | 4 | % | 3 | % | ||||||||||||||||||
EBITDA Margin | 32 | % | 19 | % | 14 | % | 8 | % | 5 | % | 14 | % | ||||||||||||||||||
Adjusted EBITDA Margin | 38 | % | 20 | % | 15 | % | 10 | % | 5 | % | 16 | % | ||||||||||||||||||
For the Year Ended December 31, 2015 | ||||||||||||||||||||||||||||||
Remotely Operated Vehicles | Subsea Products | Subsea Projects | Asset Integrity | Advanced Tech. | Unalloc. Expenses and other | Total | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||
Operating income as reported in accordance with GAAP | $ | 192,514 | $ | 175,585 | $ | 92,034 | $ | 18,235 | $ | 9,689 | $ | (114,247 | ) | $ | 373,810 | |||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Depreciation and amortization | 143,364 | 49,792 | 29,863 | 10,713 | 2,549 | 4,954 | 241,235 | |||||||||||||||||||||||
Other pre-tax | — | — | — | — | — | (14,183 | ) | (14,183 | ) | |||||||||||||||||||||
EBITDA | 335,878 | 225,377 | 121,897 | 28,948 | 12,238 | (123,476 | ) | 600,862 | ||||||||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Inventory write-downs | 15,705 | 10,285 | — | — | — | — | 25,990 | |||||||||||||||||||||||
Restructuring expenses | 7,177 | 8,672 | 2,480 | 6,436 | 220 | 419 | 25,404 | |||||||||||||||||||||||
Non-current asset reserve | — | 6,583 | — | — | — | — | 6,583 | |||||||||||||||||||||||
Allowance for bad debts | — | 4,851 | — | — | — | — | 4,851 | |||||||||||||||||||||||
Foreign currency (gains) losses | — | — | — | — | — | 15,360 | 15,360 | |||||||||||||||||||||||
Total of adjustments | 22,882 | 30,391 | 2,480 | 6,436 | 220 | 15,779 | 78,188 | |||||||||||||||||||||||
Adjusted EBITDA | $ | 358,760 | $ | 255,768 | $ | 124,377 | $ | 35,384 | $ | 12,458 | $ | (107,697 | ) | $ | 679,050 | |||||||||||||||
Revenue | $ | 807,723 | $ | 959,714 | $ | 604,484 | $ | 372,957 | $ | 317,876 | $ | 3,062,754 | ||||||||||||||||||
Operating income % as reported in accordance with GAAP | 24 | % | 18 | % | 15 | % | 5 | % | 3 | % | 12 | % | ||||||||||||||||||
EBITDA Margin | 42 | % | 23 | % | 20 | % | 8 | % | 4 | % | 20 | % | ||||||||||||||||||
Adjusted EBITDA Margin | 44 | % | 27 | % | 21 | % | 9 | % | 4 | % | 22 | % | ||||||||||||||||||