8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________

FORM 8-K

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): July 30, 2024

____________________

Civeo Corporation

(Exact name of registrant as specified in its charter)

British Columbia, Canada	1-36246		98-1253716
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)
	Three Allen Center

333 Clay Street, Suite 4980

Houston,	Texas	77002
(Address and zip code of principal executive offices)

Registrant’s telephone number, including area code: (713) 510-2400

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Shares, no par value	CVEO	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). 

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

    On July 30, 2024, Civeo Corporation (“Civeo”) issued a press release announcing its financial condition and results of operations as of and for the quarter ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this report on Form 8-K, and is incorporated herein by reference. 

The information contained in this report and the exhibit hereto shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference into any filings made by Civeo under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

    (d)    Exhibits.

Exhibit Number	Description of Document
99.1	Press Release dated July 30, 2024
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: July 30, 2024

            CIVEO CORPORATION

                    By: /s/ Barclay Brewer ,

                    Name:    Barclay Brewer

Title:    Interim Chief Financial Officer

EX-99.1

Civeo Reports Second Quarter 2024 Results

Second Quarter Highlights include:

•Reported revenues of $188.7 million, net income of $8.2 million and operating cash flow of $32.4 million;

•Delivered Adjusted EBITDA of $31.3 million and free cash flow of $30.9 million;

•Australian segment continues to deliver strong growth, with revenues up 32% on a year-over-year basis, driven by both increased occupancy at Civeo-owned villages and continued growth in our integrated services offering; and

•Returned $10.3 million of capital to shareholders in the quarter through the quarterly dividend and share repurchases.

HOUSTON and CALGARY, July 30, 2024 (BUSINESS WIRE) -- Civeo Corporation (NYSE:CVEO) today reported financial and operating results for the second quarter ended June 30, 2024.

“In the second quarter of 2024, we delivered increased billed rooms year-over-year in our Canadian lodges and Australian owned-villages as well as increased Australian integrated services business with existing clients. These year-over-year improvements were offset by the expected decline in LNG-related Canadian mobile camp activity and the sale of McClelland Lake Lodge,” said Bradley J. Dodson, Civeo's President and Chief Executive Officer.

Mr. Dodson concluded, “We generated significant free cash flow in the quarter and returned $10.3 million of capital to shareholders. Australia continues to produce strong results in 2024, for both Civeo-owned villages and integrated services. At the same time, as expected, our Canadian segment is facing headwinds with the wind down of LNG-related construction activity. Our near-term focus has been and will continue to be managing through the wildfire activity in northern Alberta, Canada. Our employees are working around-the-clock to ensure the safety of our guests, first responders and assets, and while this is a fluid situation, we are not currently expecting a material financial impact to Civeo, negative or positive.”

Second Quarter 2024 Results

In the second quarter of 2024, Civeo generated revenues of $188.7 million and reported net income of $8.2 million, or $0.56 per diluted share. During the second quarter of 2024, Civeo produced operating cash flow of $32.4 million, Adjusted EBITDA of $31.3 million and free cash flow of $30.9 million.

By comparison, in the second quarter of 2023, Civeo generated revenues of $178.8 million and reported net income of $4.5 million, or $0.30 per diluted share. During the same quarter, Civeo produced operating cash flow of $19.4 million, Adjusted EBITDA of $31.6 million and free cash flow of $12.9 million.

The year-over-year modest decrease in Adjusted EBITDA in the second quarter of 2024 was primarily driven by the expected wind-down of LNG-related Canadian mobile camp activity, including $1.4 million in mobile camp demobilization costs. This decrease was largely offset by increased billed rooms at the Canadian lodges and Australian owned-villages coupled with increased Australian integrated services revenues related to new business with existing clients.

Business Segment Results

(Unless otherwise noted, the following discussion compares the quarterly results for the second quarter of 2024 to the results for the second quarter of 2023.)

Canada

During the second quarter of 2024, the Canadian segment generated revenues of $79.5 million, operating income of $4.9 million and Adjusted EBITDA of $17.2 million, compared to revenues of $95.5 million, operating income of $3.2 million and Adjusted EBITDA of $19.8 million in the second quarter of 2023.

The Canadian segment experienced a 17% period-over-period decrease in revenues and a 13% decrease in Adjusted EBITDA driven by the anticipated wind-down of LNG-related mobile camp activity, including $1.4 million of mobile camp demobilization costs.

Australia

During the second quarter of 2024, the Australian segment generated revenues of $108.6 million, operating income of $11.7 million and Adjusted EBITDA of $21.6 million, compared to revenues of $82.5 million, operating income of $9.2 million and Adjusted EBITDA of $19.6 million in the second quarter of 2023.

Revenue from the Australian segment increased 32% period-over-period and Adjusted EBITDA was up 10% driven by a 6% year-over-year increase in billed rooms and increased integrated services activity from existing clients, building on a history of substantial multi-year growth.

Financial Condition and Capital Allocation

As of June 30, 2024, Civeo had total liquidity of approximately $159.0 million, consisting of $151.5 million available under its revolving credit facilities and $7.4 million of cash on hand.

Civeo’s total debt outstanding on June 30, 2024 was $47.5 million, a $31.1 million decrease since March 31, 2024. Civeo's net debt on June 30, 2024 was $40.1 million, a $21.8 million decrease since March 31, 2024.

Civeo reported a net leverage ratio of 0.3x as of June 30, 2024.

During the second quarter of 2024, Civeo invested $5.3 million in capital expenditures compared to $6.9 million invested during the second quarter of 2023. Capital expenditures in both periods were primarily related to maintenance spending on the Company’s lodges and villages. Capital expenditures in the second quarter of 2024 also included $0.5 million related to customer-funded infrastructure upgrades at three Australian villages compared to $0.8 million in the second quarter of 2023.

The Company announced today that its board of directors has declared a quarterly cash dividend of $0.25 per common share, payable on September 16, 2024 to shareholders of record as of close of business on August 26, 2024. For purposes of the Income Tax Act (Canada), the Company has designated this dividend to be an "eligible dividend".

In the second quarter of 2024, Civeo repurchased approximately 274,000 shares through its share repurchase program for approximately $6.6 million.

Full Year 2024 Guidance

For the full year of 2024, Civeo is maintaining its previously provided revenue and Adjusted EBITDA guidance ranges of $625 million to $700 million and $80 million to $90 million, respectively. The Company is also maintaining its full year 2024 capital expenditure guidance of $30 million to $35 million.

Conference Call

Civeo will host a conference call to discuss its second quarter 2024 financial results today at 11:00 a.m. Eastern time. This call is being webcast and can be accessed at Civeo's website at www.civeo.com. Participants may also join the conference call by dialing (877) 423-9813 in the United States or (201) 689-8573 internationally and asking for the Civeo call or using the conference ID 13747979#. A replay will be available after the call by dialing (844) 512-2921 in the United States or (412) 317-6671 internationally and using the conference ID 13747979#.

About Civeo

Civeo Corporation is a leading provider of hospitality services with prominent market positions in the Canadian oil

sands and the Australian natural resource regions. Civeo offers comprehensive solutions for lodging hundreds or

thousands of workers with its long-term and temporary accommodations and provides food services, housekeeping,

facility management, laundry, water and wastewater treatment, power generation, communications systems,

security and logistics services. Civeo currently operates a total of 24 lodges and villages in Canada, Australia and

the U.S., with an aggregate of approximately 26,000 rooms. Civeo is publicly traded under the symbol CVEO on the

New York Stock Exchange. For more information, please visit Civeo's website at www.civeo.com.

Forward Looking Statements

This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and Section

21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts

and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements herein, including

the statements regarding Civeo’s future plans and outlook, strategic priorities, guidance, current trends,

expectations with respect to share repurchases and dividends, and liquidity needs, are based on then current

expectations and entail various risks and uncertainties that could cause actual results to differ materially from those

expressed or implied by these forward-looking statements. Such risks and uncertainties include, among other

things, risks associated with the general nature of the accommodations industry, risks associated with the level of

supply and demand for oil, coal, iron ore and other minerals, including the level of activity, spending and

developments in the Canadian oil sands, the level of demand for coal and other natural resources from, and

investments and opportunities in, Australia, and fluctuations or sharp declines in the current and future prices of oil,

natural gas, coal, iron ore and other minerals, risks associated with failure by our customers to reach positive final

investment decisions on, or otherwise not complete, projects with respect to which we have been awarded

contracts, which may cause those customers to terminate or postpone contracts, risks associated with currency

exchange rates, risks associated with inflation and volatility in the banking sector, risks associated with the

company’s ability to integrate any future acquisitions, risks associated with labor shortages, risks associated with the development of new projects, including whether such projects will continue in the future, risks associated with the trading price of the company’s common shares, availability and cost of capital, risks associated with general global economic conditions, geopolitical events, inflation, global weather conditions, natural disasters, including wildfires, global health concerns, and security threats and changes to government and environmental regulations, including climate change, and other factors discussed in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Civeo’s most recent annual report on Form 10-K and other reports the company may file from time to time with the U.S. Securities and Exchange Commission. Each forward-looking statement contained herein speaks only as of the date of this release. Except as required by law, Civeo expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Information

EBITDA, Adjusted EBITDA, free cash flow, net debt, bank-adjusted EBITDA and net leverage ratio are non-GAAP

financial measures. See “Non-GAAP Reconciliation” below for definitions and additional information concerning

non-GAAP financial measures, including a reconciliation of the non-GAAP financial information presented in this

press release to the most directly comparable financial information presented in accordance with GAAP. Non-GAAP

financial information supplements and should be read together with, and is not an alternative or substitute for, the

Company’s financial results reported in accordance with GAAP. Because non-GAAP financial information is not

standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP

financial measures.

- Financial Schedules Follow -

CIVEO CORPORATION

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenues	$	188,713	$	178,843	$	354,833	$	346,434
Costs and expenses:
Cost of sales and services	140,834		131,425		271,279		264,939
Selling, general and administrative expenses	17,433		16,459		36,073		32,649
Depreciation and amortization expense	17,059		20,701		33,829		42,363
Impairment expense	—		—		7,823		—
(Gain) loss on sale of McClelland Lake Lodge assets, net	87		—		(5,988)		—
Other operating expense	188		86		486		215
	175,601		168,671		343,502		340,166
Operating income	13,112		10,172		11,331		6,268
Interest expense	(2,203)		(3,604)		(4,563)		(7,260)
Interest income	54		50		97		82
Other income	310		427		763		2,877
Income before income taxes	11,273		7,045		7,628		1,967
Income tax expense	(3,786)		(2,878)		(5,337)		(4,111)
Net income (loss)	7,487		4,167		2,291		(2,144)
Less: Net loss attributable to noncontrolling interest	(740)		(296)		(803)		(254)
Net income (loss) attributable to Civeo Corporation	$	8,227	$	4,463	$	3,094	$	(1,890)
Net income (loss) per share attributable to Civeo Corporation common shareholders:
Basic	$	0.57	$	0.30	$	0.21	$	(0.13)
Diluted	$	0.56	$	0.30	$	0.21	$	(0.13)
Weighted average number of common shares outstanding:
Basic	14,518		14,970		14,586		15,064
Diluted	14,600		15,000		14,678		15,064

CIVEO CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

	June 30, 2024		December 31, 2023
	(UNAUDITED)
Current assets:
Cash and cash equivalents	$	7,435	$	3,323
Accounts receivable, net	124,337		143,222
Inventories	8,353		6,982
Assets held for sale	—		5,873
Prepaid expenses and other current assets	11,468		15,846
Total current assets	151,593		175,246
Property, plant and equipment, net	236,842		270,563
Goodwill, net	7,538		7,690
Other intangible assets, net	72,707		77,999
Operating lease right-of-use assets	11,709		12,286
Other noncurrent assets	2,845		4,278
Total assets	$	483,234	$	548,062
Current liabilities:
Accounts payable	$	47,151	$	58,699
Accrued liabilities	32,207		40,523
Income taxes payable	9,685		3,831
Deferred revenue	4,187		4,849
Other current liabilities	4,855		6,334
Total current liabilities	98,085		114,236
Long-term debt	47,489		65,554
Deferred income taxes	7,176		11,803
Operating lease liabilities	8,571		9,264
Other noncurrent liabilities	22,525		24,167
Total liabilities	183,846		225,024
Shareholders' equity:
Common shares	—		—
Additional paid-in capital	1,630,130		1,628,972
Accumulated deficit	(933,346)		(919,023)
Treasury stock	(10,130)		(9,063)
Accumulated other comprehensive loss	(389,229)		(380,715)
Total Civeo Corporation shareholders' equity	297,425		320,171
Noncontrolling interest	1,963		2,867
Total shareholders' equity	299,388		323,038
Total liabilities and shareholders' equity	$	483,234	$	548,062

CIVEO CORPORATION

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Six Months Ended June 30,
	2024		2023
Cash flows from operating activities:
Net income (loss)	$	2,291	$	(2,144)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	33,829		42,363
Impairment charges	7,823		—
Deferred income tax expense (benefit)	(4,344)		3,985
Non-cash compensation charge	1,158		2,044
Gain on disposals of assets	(6,104)		(2,445)
Provision (benefit) for credit losses, net of recoveries	34		(65)
Other, net	1,257		1,242
Changes in operating assets and liabilities:
Accounts receivable	15,229		(19,669)
Inventories	(1,525)		(297)
Accounts payable and accrued liabilities	(17,166)		(14,713)
Taxes payable	5,836		(78)
Other current and noncurrent assets and liabilities, net	25		9,538
Net cash flows provided by operating activities	38,343		19,761
Cash flows from investing activities:
Capital expenditures	(10,929)		(11,717)
Proceeds from dispositions of property, plant and equipment	10,617		2,719
Other, net	183		—
Net cash flows used in investing activities	(129)		(8,998)
Cash flows from financing activities:
Term loan repayments	—		(14,942)
Revolving credit borrowings (repayments), net	(15,825)		15,993
Dividends paid	(7,368)		—
Repurchases of common shares	(9,852)		(7,970)
Taxes paid on vested shares	(1,067)		—
Net cash flows used in financing activities	(34,112)		(6,919)
Effect of exchange rate changes on cash	10		(377)
Net change in cash and cash equivalents	4,112		3,467
Cash and cash equivalents, beginning of period	3,323		7,954
Cash and cash equivalents, end of period	$	7,435	$	11,421

CIVEO CORPORATION

SEGMENT DATA

(in thousands)

(unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenues
Canada	$	79,527	$	95,470	$	146,687	$	184,923
Australia	108,608		82,544		200,345		159,533
Other	578		829		7,801		1,978
Total revenues	$	188,713	$	178,843	$	354,833	$	346,434
EBITDA (1)
Canada	$	17,154	$	19,818	$	28,773	$	31,829
Australia	21,551		19,606		36,073		33,815
Corporate, other and eliminations	(7,484)		(7,828)		(18,120)		(13,882)
Total EBITDA	$	31,221	$	31,596	$	46,726	$	51,762
Adjusted EBITDA (1)
Canada	$	17,241	$	19,818	$	22,785	$	31,829
Australia	21,551		19,606		41,823		33,815
Corporate, other and eliminations	(7,484)		(7,828)		(16,047)		(13,882)
Total adjusted EBITDA	$	31,308	$	31,596	$	48,561	$	51,762
Operating income (loss)
Canada	$	4,927	$	3,177	$	5,481	$	(1,325)
Australia	11,717		9,176		17,684		14,073
Corporate, other and eliminations	(3,532)		(2,181)		(11,834)		(6,480)
Total operating income (loss)	$	13,112	$	10,172	$	11,331	$	6,268
(1) Please see Non-GAAP Reconciliation Schedule.

CIVEO CORPORATION

NON-GAAP RECONCILIATIONS

(in thousands)

(unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,				Twelve Months Ended June 30,
	2024		2023		2024		2023		2024
EBITDA (1)	$	31,221	$	31,596	$	46,726	$	51,762	$	123,901
Adjusted EBITDA (1)	$	31,308	$	31,596	$	48,561	$	51,762	$	98,833
Free Cash Flow (2)	$	30,881	$	12,912	$	38,031	$	10,763
Net Leverage Ratio (3)									0.3x

(1)The term EBITDA is a non-GAAP financial measure that is defined as net income (loss) attributable to Civeo Corporation

plus interest, taxes, depreciation and amortization. The term Adjusted EBITDA is a non-GAAP financial measure that is

defined as EBITDA adjusted to exclude certain other unusual or non-operating items. EBITDA and Adjusted EBITDA are not

measures of financial performance under generally accepted accounting principles and should not be considered in isolation

from or as a substitute for net income or cash flow measures prepared in accordance with generally accepted accounting

principles or as a measure of profitability or liquidity. Additionally, EBITDA and Adjusted EBITDA may not be comparable to

other similarly titled measures of other companies. Civeo has included EBITDA and Adjusted EBITDA as supplemental

disclosures because its management believes that EBITDA and Adjusted EBITDA provide useful information regarding its

ability to service debt and to fund capital expenditures and provide investors a helpful measure for comparing Civeo's

operating performance with the performance of other companies that have different financing and capital structures or tax

rates. Civeo uses EBITDA and Adjusted EBITDA to compare and to monitor the performance of its business segments to

other comparable public companies and as a benchmark for the award of incentive compensation under its annual incentive

compensation plan.

The following table sets forth a reconciliation of EBITDA and Adjusted EBITDA to net income (loss) attributable to Civeo Corporation, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles (in thousands) (unaudited):

	Three Months Ended June 30,				Six Months Ended June 30,				Twelve Months Ended June 30,
	2024		2023		2024		2023		2024
Net income (loss) attributable to Civeo Corporation	$	8,227	$	4,463	$	3,094	$	(1,890)	$	35,141
Income tax expense	3,786		2,878		5,337		4,111		11,859
Depreciation and amortization	17,059		20,701		33,829		42,363		66,608
Interest income	(54)		(50)		(97)		(82)		(187)
Interest expense	2,203		3,604		4,563		7,260		10,480
EBITDA	$	31,221	$	31,596	$	46,726	$	51,762	$	123,901
Adjustments to EBITDA
Impairment of long-lived assets (a)	—		—		7,823		—		9,218
Net (gain) loss on disposition of McClelland Lake Lodge assets (b)	87		—		(5,988)		—		(34,286)
Adjusted EBITDA	$	31,308	$	31,596	$	48,561	$	51,762	$	98,833

(a)Relates to asset impairments in the first quarter of 2024 and the fourth quarter of 2023. In the first quarter of 2024, we recorded a pre-tax loss related to the impairment of long-lived assets in our Australian segment of $5.7 million and a pre-tax loss related to the impairment of long-lived assets in the U.S. of $2.1 million. In the fourth quarter of 2023, we recorded a pre-tax loss related to the impairment of long-lived assets in the U.S. of $1.4 million.

(b)Relates to proceeds received and expenses incurred associated with the dismantlement and sale of the McClelland Lake Lodge. In the second quarter of 2024, we recorded expenses associated with the sale of our McClelland Lake Lodge of $0.1 million, which are included in (Gain) loss on sale of McClelland Lake Lodge assets, net on the unaudited statements of operations. In the first quarter of 2024, we recorded gains associated with the sale of the McClelland Lake Lodge of $6.1 million, which are included in (Gain) loss on sale of McClelland Lake Lodge assets, net on the unaudited statements of operations. In the fourth quarter of 2023, we recorded gains associated with the sale of the McClelland Lake Lodge of $33.2 million, which are included in (Gain) loss on sale of McClelland Lake Lodge assets, net ($23.5 million) and Other income ($9.7 million) on the unaudited statements of operations. In the third quarter of 2023, we recorded expenses associated with the sale of our McClelland Lake Lodge of $4.9 million, which are included in (Gain) loss on sale of McClelland Lake Lodge assets, net on the unaudited statements of operations.

(2)The term Free Cash Flow is a non-GAAP financial measure that is defined as net cash flows provided by operating activities

less capital expenditures plus proceeds from asset sales. Free Cash Flow is not a measure of financial performance under

generally accepted accounting principles and should not be considered in isolation from or as a substitute for cash flow

measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity.

Additionally, Free Cash Flow may not be comparable to other similarly titled measures of other companies. Civeo has

included Free Cash Flow as a supplemental disclosure because its management believes that Free Cash Flow provides

useful information regarding the cash flow generating ability of its business relative to its capital expenditure and debt

service obligations. Civeo uses Free Cash Flow to compare and to understand, manage, make operating decisions and

evaluate Civeo's business. It is also used as a benchmark for the award of incentive compensation under its annual

incentive compensation plan.

The following table sets forth a reconciliation of Free Cash Flow to Net Cash Flows Provided by Operating Activities, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles (in thousands) (unaudited):

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net Cash Flows Provided by Operating Activities	$	32,358	$	19,403	$	38,343	$	19,761
Capital expenditures	(5,316)		(6,945)		(10,929)		(11,717)
Proceeds from dispositions of property, plant and equipment	3,839		454		10,617		2,719
Free Cash Flow	$	30,881	$	12,912	$	38,031	$	10,763

(3)The term net leverage ratio is a non-GAAP financial measure that is defined as net debt divided by bank-adjusted EBITDA.

Net debt, bank-adjusted EBITDA and net leverage ratio are not financial measures under GAAP and should not be

considered in isolation from or as a substitute for total debt, net income (loss) or cash flow measures prepared in

accordance with GAAP or as a measure of profitability or liquidity. Additionally, net debt, bank-adjusted EBITDA and net

leverage ratio may not be comparable to other similarly titled measures of other companies. Civeo has included net debt,

bank-adjusted EBITDA and net leverage ratio as a supplemental disclosure because its management believes that this data

provides useful information regarding the level of the Company’s indebtedness and its ability to service debt. Additionally,

per Civeo’s credit agreement, the Company is required to maintain a net leverage ratio below 3.0x every quarter to remain in

compliance with the credit agreement.

The following table sets forth a reconciliation of net debt, bank-adjusted EBITDA and net leverage ratio to the most directly comparable measures of financial performance calculated under GAAP (in thousands) (unaudited):

	As of June 30,
	2024
Total debt	$	47,489
Less: Cash and cash equivalents	7,435
Net debt	$	40,054
Adjusted EBITDA for the twelve months ended June 30, 2024 (a)	$	98,833
Adjustments to Adjusted EBITDA
Stock-based compensation	3,573
Interest income	187
Incremental adjustments for McClelland Lake Lodge disposition (b)	13,041
Bank-adjusted EBITDA	$	115,634
Net leverage ratio (c)	0.3x
(a)See footnote 1 above for reconciliation of Adjusted EBITDA to net income (loss) attributable to Civeo Corporation
(b) Related to incremental adjustments associated with the sale of the McClelland Lake Lodge assets as required by our credit facility
(c) Calculated as net debt divided by bank-adjusted EBITDA

CIVEO CORPORATION

NON-GAAP RECONCILIATIONS - GUIDANCE

(in millions)

(unaudited)

	Year Ending December 31, 2024
EBITDA Range (1)	$	78.2	$	88.2
Adjusted EBITDA Range (1)	$	80.0	$	90.0

(1)The following table sets forth a reconciliation of estimated EBITDA and Adjusted EBITDA to estimated net loss, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles (in millions) (unaudited):

	Year Ending December 31, 2024
	(estimated)
Net loss	$	(11.8)	$	(3.8)
Income tax expense	12.0		14.0
Depreciation and amortization	70.0		70.0
Interest expense	8.0		8.0
EBITDA	$	78.2	$	88.2
Adjustments to EBITDA
Impairment expense	7.8		7.8
Net gain on disposition of McClelland Lake Lodge assets	(6.0)		(6.0)
Adjusted EBITDA	$	80.0	$	90.0

CIVEO CORPORATION

SUPPLEMENTAL QUARTERLY SEGMENT AND OPERATING DATA

(U.S. dollars in thousands, except for room counts and average daily rates)

(unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Supplemental Operating Data - Canadian Segment
Revenues
Accommodation revenue (1)	$	72,259	$	72,355	$	132,046	$	136,583
Mobile facility rental revenue (2)	356		17,407		1,350		37,438
Food and other services revenue (3)	6,912		5,708		13,291		10,902
Total Canadian revenues	$	79,527	$	95,470	$	146,687	$	184,923
Costs
Accommodation cost	$	48,197	$	52,431	$	93,917	$	104,529
Mobile facility rental cost	1,401		11,598		4,052		26,100
Food and other services cost	6,314		5,060		12,454		9,834
Indirect other cost	2,937		2,756		5,683		5,287
Total Canadian cost of sales and services	$	58,849	$	71,845	$	116,106	$	145,750
Average daily rates (4)	$	96	$	100	$	97	$	98
Billed rooms (5)	752,364		724,299		1,362,396		1,367,095
Canadian dollar to U.S. dollar	$	0.731	$	0.745	$	0.736	$	0.742
Supplemental Operating Data - Australian Segment
Revenues
Accommodation revenue (1)	$	48,914	$	44,342	$	96,021	$	84,941
Food and other services revenue (3)	59,694		38,202		104,324		74,592
Total Australian revenues	$	108,608	$	82,544	$	200,345	$	159,533
Costs
Accommodation cost	$	23,613	$	20,948	$	46,207	$	41,266
Food and other services cost	54,527		35,372		95,431		71,234
Indirect other cost	2,897		2,225		5,512		4,353
Total Australian cost of sales and services	$	81,037	$	58,545	$	147,150	$	116,853
Average daily rates (4)	$	78	$	75	$	77	$	76
Billed rooms (5)	625,353		587,855		1,239,289		1,110,568
Australian dollar to U.S. dollar	$	0.659	$	0.668	$	0.658	$	0.676

(1)Includes revenues related to lodge and village rooms and hospitality services for owned rooms for the periods presented.

(2)Includes revenues related to mobile assets for the periods presented.

(3)Includes revenues related to food services, laundry and water and wastewater treatment services, and facilities management for the periods presented.

(4)Average daily rate is based on billed rooms and accommodation revenue.

(5)Billed rooms represents total billed days for owned assets for the periods presented.

CONTACTS:

Regan Nielsen

Civeo Corporation

Vice President, Corporate Development & Investor Relations

713-510-2400

XML

Cover	Jul. 30, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Jul. 30, 2024
Entity Registrant Name	Civeo Corp
Entity Incorporation, State or Country Code	A1
Entity File Number	1-36246
Entity Central Index Key	0001590584
Amendment Flag	false
Entity Tax Identification Number	98-1253716
Entity Address, Address Line One	Three Allen Center
Entity Address, Address Line Two	333 Clay Street,
Entity Address, Address Line Three	Suite 4980
Entity Address, City or Town	Houston,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77002
City Area Code	713
Local Phone Number	510-2400
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Shares, no par value
Trading Symbol	CVEO
Security Exchange Name	NYSE
Entity Emerging Growth Company	false