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| 8-K - 8-K EARNINGS RELEASE JUN 2020 - OCEANEERING INTERNATIONAL INC | a8-kearningsrelease2q2.htm |
Exhibit 99.1
Oceaneering Reports Second Quarter 2020 Results
HOUSTON, July 29, 2020 – 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
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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
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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.
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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
investorrelations@oceaneering.com
- Tables follow on next page -
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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. | |||||||||||||||||||||||||||
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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. | ||||||||||||||||||||||||
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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. | ||||||||||||||||||||||||
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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.
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RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | |||||||||||||||||||||||||||
(continued) | |||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
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RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | |||||||||||||||||||||||
(continued) | |||||||||||||||||||||||
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 | |||||||||||||||||||||
10
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | |||||||||||||||||||||||
(continued) | |||||||||||||||||||||||
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 | |||||||||
11
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
(continued) | ||||||||||||||||||||||||||||||
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 | )% | ||||||||||||||||||
12
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
(continued) | ||||||||||||||||||||||||||||||
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 | % | ||||||||||||||||||
13
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
(continued) | ||||||||||||||||||||||||||||||
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 | )% | ||||||||||||||||||
14
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
(continued) | ||||||||||||||||||||||||||||||
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 | % | ||||||||||||||||||
15
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
(continued) | ||||||||||||||||||||||||||||||
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 | % | ||||||||||||||||||
16
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
(continued) | ||||||||||||||||||||||||||||||
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 | % | ||||||||||||||||||
17