Delaware (State or other jurisdiction of incorporation) | 1-10945 (Commission File Number) | 95-2628227 (IRS Employer Identification No.) |
11911 FM 529 Houston, TX (Address of principal executive offices) | 77041 (Zip Code) |
¨ | 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)) |
Exhibit 99.1 | Press Release of Oceaneering International, Inc., dated October 27, 2016 regarding Item 2.02 | |
Exhibit 99.2 | Press Release of Oceaneering International, Inc., dated October 27, 2016 regarding Item 8.01 |
OCEANEERING INTERNATIONAL, INC. | |||
Date: | October 27, 2016 | By: | /S/ ROBERT P. MINGOIA |
Robert P. Mingoia | |||
Vice President and Treasurer |
Exhibit No. | Description | |
Exhibit 99.1 | Press Release of Oceaneering International, Inc., dated October 27, 2016 regarding Item 2.02 | |
Exhibit 99.2 | Press Release of Oceaneering International, Inc., dated October 27, 2016 regarding Item 8.01 |
• | Reported EPS of $(0.12) and Adjusted EPS of $0.17 |
• | Recorded $43.6 million in charges |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
Sep 30, | Jun 30, | Sep 30, | ||||||||||||||||||
2016 | 2015 | 2016 | 2016 | 2015 | ||||||||||||||||
Revenue | $ | 549,275 | $ | 743,613 | $ | 625,539 | $ | 1,783,158 | $ | 2,340,688 | ||||||||||
Gross Margin | 35,443 | 168,313 | 95,233 | 228,156 | 499,307 | |||||||||||||||
Income (Loss) from Operations | (11,856 | ) | 113,464 | 38,380 | 74,623 | 328,054 | ||||||||||||||
Net Income (Loss) | $ | (11,798 | ) | $ | 68,539 | $ | 22,309 | $ | 35,614 | $ | 203,506 | |||||||||
Diluted Earnings Per Share (EPS) | $ | (0.12 | ) | $ | 0.70 | $ | 0.23 | $ | 0.36 | $ | 2.06 | |||||||||
OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||||||||||||
Sep 30, 2016 | Dec 31, 2015 | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||
Current Assets (including cash and cash equivalents of $441,625 and $385,235) | $ | 1,359,268 | $ | 1,517,493 | |||||||||||||||||||||||||
Net Property and Equipment | 1,166,971 | 1,266,731 | |||||||||||||||||||||||||||
Other Assets | 711,331 | 645,312 | |||||||||||||||||||||||||||
TOTAL ASSETS | $ | 3,237,570 | $ | 3,429,536 | |||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||
Current Liabilities | $ | 501,073 | $ | 615,956 | |||||||||||||||||||||||||
Long-term Debt | 802,256 | 795,836 | |||||||||||||||||||||||||||
Other Long-term Liabilities | 362,461 | 439,010 | |||||||||||||||||||||||||||
Shareholders' Equity | 1,571,780 | 1,578,734 | |||||||||||||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 3,237,570 | $ | 3,429,536 | |||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||
Sep 30, 2016 | Sep 30, 2015 | Jun 30, 2016 | Sep 30, 2016 | Sep 30, 2015 | |||||||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||||||||||
Revenue | $ | 549,275 | $ | 743,613 | $ | 625,539 | $ | 1,783,158 | $ | 2,340,688 | |||||||||||||||||||
Cost of services and products | 513,832 | 575,300 | 530,306 | 1,555,002 | 1,841,381 | ||||||||||||||||||||||||
Gross Margin | 35,443 | 168,313 | 95,233 | 228,156 | 499,307 | ||||||||||||||||||||||||
Selling, general and administrative expense | 47,299 | 54,849 | 56,853 | 153,533 | 171,253 | ||||||||||||||||||||||||
Income (loss) from Operations | (11,856 | ) | 113,464 | 38,380 | 74,623 | 328,054 | |||||||||||||||||||||||
Interest income | 684 | 229 | 1,442 | 2,421 | 436 | ||||||||||||||||||||||||
Interest expense | (6,325 | ) | (6,396 | ) | (6,207 | ) | (18,924 | ) | (18,696 | ) | |||||||||||||||||||
Equity earnings (losses) of unconsolidated affiliates | (246 | ) | 1,567 | 263 | 543 | 1,313 | |||||||||||||||||||||||
Other income (expense), net | 570 | (9,099 | ) | (1,405 | ) | (6,823 | ) | (14,883 | ) | ||||||||||||||||||||
Income before Income Taxes | (17,173 | ) | 99,765 | 32,473 | 51,840 | 296,224 | |||||||||||||||||||||||
Provision for income taxes (benefit) | (5,375 | ) | 31,226 | 10,164 | 16,226 | 92,718 | |||||||||||||||||||||||
Net Income (loss) | $ | (11,798 | ) | $ | 68,539 | $ | 22,309 | $ | 35,614 | $ | 203,506 | ||||||||||||||||||
Weighted average diluted shares outstanding | 98,061 | 98,185 | 98,424 | 98,384 | 98,991 | ||||||||||||||||||||||||
Diluted Earnings (Loss) per Share | $ | (0.12 | ) | $ | 0.70 | $ | 0.23 | $ | 0.36 | $ | 2.06 | ||||||||||||||||||
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 Nine Months Ended | |||||||||||||||||||||||
Sep 30, 2016 | Sep 30, 2015 | Jun 30, 2016 | Sep 30, 2016 | Sep 30, 2015 | ||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||
Remotely Operated Vehicles | Revenue | $ | 126,507 | $ | 198,426 | $ | 139,641 | $ | 413,769 | $ | 634,299 | |||||||||||||
Gross Margin | $ | (16,288 | ) | $ | 60,681 | $ | 26,925 | $ | 45,959 | $ | 202,124 | |||||||||||||
Operating Income (Loss) | $ | (23,845 | ) | $ | 52,417 | $ | 18,020 | $ | 21,162 | $ | 175,893 | |||||||||||||
Operating Income (Loss) % | (19 | )% | 26 | % | 13 | % | 5 | % | 28 | % | ||||||||||||||
Days available | 29,126 | 31,025 | 28,959 | 86,904 | 91,621 | |||||||||||||||||||
Days utilized | 15,156 | 21,229 | 16,057 | 47,218 | 65,078 | |||||||||||||||||||
Utilization % | 52 | % | 68 | % | 55 | % | 54 | % | 71 | % | ||||||||||||||
Subsea Products | Revenue | $ | 157,269 | $ | 220,039 | $ | 190,897 | $ | 542,978 | $ | 700,825 | |||||||||||||
Gross Margin | $ | 20,423 | $ | 64,078 | $ | 42,728 | $ | 119,287 | $ | 196,310 | ||||||||||||||
Operating Income | $ | 6,109 | $ | 46,079 | $ | 25,121 | $ | 71,870 | $ | 138,379 | ||||||||||||||
Operating Income % | 4 | % | 21 | % | 13 | % | 13 | % | 20 | % | ||||||||||||||
Backlog at end of period | $ | 457,000 | $ | 736,000 | $ | 503,000 | $ | 457,000 | $ | 736,000 | ||||||||||||||
Subsea Projects | Revenue | $ | 110,799 | $ | 147,191 | $ | 138,662 | $ | 378,883 | $ | 473,087 | |||||||||||||
Gross Margin | $ | 19,321 | $ | 34,830 | $ | 14,317 | $ | 45,147 | $ | 98,719 | ||||||||||||||
Operating Income | $ | 15,029 | $ | 28,841 | $ | 10,237 | $ | 32,055 | $ | 81,724 | ||||||||||||||
Operating Income % | 14 | % | 20 | % | 7 | % | 8 | % | 17 | % | ||||||||||||||
Asset Integrity | Revenue | $ | 71,995 | $ | 95,609 | $ | 73,864 | $ | 215,459 | $ | 289,611 | |||||||||||||
Gross Margin | $ | 11,591 | $ | 15,009 | $ | 10,096 | $ | 29,030 | $ | 39,558 | ||||||||||||||
Operating Income (Loss) | $ | 4,725 | $ | 8,549 | $ | (805 | ) | $ | 4,354 | $ | 18,150 | |||||||||||||
Operating Income (Loss) % | 7 | % | 9 | % | (1 | )% | 2 | % | 6 | % | ||||||||||||||
Advanced Technologies | Revenue | $ | 82,705 | $ | 82,348 | $ | 82,475 | $ | 232,069 | $ | 242,866 | |||||||||||||
Gross Margin | $ | 9,665 | $ | 6,974 | $ | 10,600 | $ | 26,092 | $ | 27,319 | ||||||||||||||
Operating Income | $ | 4,357 | $ | 1,635 | $ | 5,528 | $ | 10,478 | $ | 12,922 | ||||||||||||||
Operating Income % | 5 | % | 2 | % | 7 | % | 5 | % | 5 | % | ||||||||||||||
Unallocated Expenses | ||||||||||||||||||||||||
Gross Margin | $ | (9,269 | ) | $ | (13,259 | ) | $ | (9,433 | ) | $ | (37,359 | ) | $ | (64,723 | ) | |||||||||
Operating Income | $ | (18,231 | ) | $ | (24,057 | ) | $ | (19,721 | ) | $ | (65,296 | ) | $ | (99,014 | ) | |||||||||
TOTAL | Revenue | $ | 549,275 | $ | 743,613 | $ | 625,539 | $ | 1,783,158 | $ | 2,340,688 | |||||||||||||
Gross Margin | $ | 35,443 | $ | 168,313 | $ | 95,233 | $ | 228,156 | $ | 499,307 | ||||||||||||||
Operating Income (Loss) | $ | (11,856 | ) | $ | 113,464 | $ | 38,380 | $ | 74,623 | $ | 328,054 | |||||||||||||
Operating Income (Loss) % | (2 | )% | 15 | % | 6 | % | 4 | % | 14 | % | ||||||||||||||
SELECTED CASH FLOW INFORMATION | ||||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||
Sep 30, 2016 | Sep 30, 2015 | Jun 30, 2016 | Sep 30, 2016 | Sep 30, 2015 | ||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||
Capital expenditures, including acquisitions | $ | 32,945 | $ | 44,428 | $ | 31,738 | $ | 85,889 | $ | 369,187 | ||||||||||||||
Depreciation and Amortization: | ||||||||||||||||||||||||
Oilfield | ||||||||||||||||||||||||
Remotely Operated Vehicles | $ | 43,705 | $ | 35,094 | $ | 34,026 | $ | 111,415 | $ | 107,236 | ||||||||||||||
Subsea Products | 14,205 | 12,681 | 12,952 | 39,964 | 38,247 | |||||||||||||||||||
Subsea Projects | 8,575 | 9,782 | 8,353 | 25,447 | 24,140 | |||||||||||||||||||
Asset Integrity | 5,980 | 2,663 | 2,843 | 11,736 | 8,222 | |||||||||||||||||||
Total Oilfield | 72,465 | 60,220 | 58,174 | 188,562 | 177,845 | |||||||||||||||||||
Advanced Technologies | 789 | 618 | 806 | 2,329 | 1,879 | |||||||||||||||||||
Unallocated Expenses | 946 | 1,184 | 999 | 3,069 | 3,784 | |||||||||||||||||||
$ | 74,200 | $ | 62,022 | $ | 59,979 | $ | 193,960 | $ | 183,508 | |||||||||||||||
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||
(continued) | ||||||||||||||||||||||||||
Adjusted Net Income and Diluted Earnings per Share (EPS) | ||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||||
Sep 30, 2016 | Sep 30, 2015 | |||||||||||||||||||||||||
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 | $ | (11,798 | ) | $ | (0.12 | ) | $ | 68,539 | $ | 0.70 | ||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||
Inventory write-downs | 30,490 | — | ||||||||||||||||||||||||
Restructuring expenses | — | 11,712 | ||||||||||||||||||||||||
Fixed asset write-offs | 13,790 | — | ||||||||||||||||||||||||
Foreign currency (gains) losses | (643 | ) | 9,155 | |||||||||||||||||||||||
Total pre tax adjustments | 43,637 | 20,867 | ||||||||||||||||||||||||
Tax effect | 15,273 | 7,303 | ||||||||||||||||||||||||
Total adjustments after tax | 28,364 | 13,564 | ||||||||||||||||||||||||
Adjusted amounts | $ | 16,566 | $ | 0.17 | $ | 82,103 | $ | 0.84 | ||||||||||||||||||
For the Nine Months Ended | ||||||||||||||||||||||||||
Sep 30, 2016 | Sep 30, 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 | $ | 35,614 | $ | 0.36 | $ | 203,506 | $ | 2.06 | ||||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||
Inventory write-downs | 30,490 | 9,025 | ||||||||||||||||||||||||
Restructuring expenses | — | 11,712 | ||||||||||||||||||||||||
Allowance for bad debts | 5,569 | — | ||||||||||||||||||||||||
Fixed asset write-offs | 13,790 | — | ||||||||||||||||||||||||
Foreign currency losses | 6,459 | 14,422 | ||||||||||||||||||||||||
Total pre tax adjustments | 56,308 | 35,159 | ||||||||||||||||||||||||
Tax effect | 19,708 | 12,306 | ||||||||||||||||||||||||
Total adjustments after tax | 36,600 | 22,853 | ||||||||||||||||||||||||
Adjusted amounts | $ | 72,214 | $ | 0.73 | $ | 226,359 | $ | 2.29 | ||||||||||||||||||
Notes: | ||||||||||||||||||||||||||
The incremental applicable income tax rate used for each period presented is 35%. | ||||||||||||||||||||||||||
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 period ended September 30, 2016, where we used 98,444,000 instead of the GAAP shares of 98,061,000, as our share equivalents became dilutive based on the amount of adjusted net income. | ||||||||||||||||||||||||||
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||
(continued) | ||||||||||||||||||||||||||
EBITDA and EBITDA Margins | ||||||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | For the Year Ended | ||||||||||||||||||||||||
Sep 30, 2016 | Sep 30, 2015 | Jun 30, 2016 | Sep 30, 2016 | Sep 30, 2015 | Dec 31, 2015 | |||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||
Net Income (Loss) | $ | (11,798 | ) | $ | 68,539 | $ | 22,309 | $ | 35,614 | $ | 203,506 | $ | 231,011 | |||||||||||||
Depreciation and Amortization | 74,200 | 62,022 | 59,979 | 193,960 | 183,508 | 241,235 | ||||||||||||||||||||
Subtotal | 62,402 | 130,561 | 82,288 | 229,574 | 387,014 | 472,246 | ||||||||||||||||||||
Interest Expense, net of Interest Income | 5,641 | 6,167 | 4,765 | 16,503 | 18,260 | 24,443 | ||||||||||||||||||||
Amortization included in Interest Expense | (287 | ) | (266 | ) | (286 | ) | (860 | ) | (797 | ) | (1,077 | ) | ||||||||||||||
Provision for Income Taxes (Benefit) | (5,375 | ) | 31,226 | 10,164 | 16,226 | 92,718 | 105,250 | |||||||||||||||||||
EBITDA | $ | 62,381 | $ | 167,688 | $ | 96,931 | $ | 261,443 | $ | 497,195 | $ | 600,862 | ||||||||||||||
Revenue | $ | 549,275 | $ | 743,613 | $ | 625,539 | $ | 1,783,158 | $ | 2,340,688 | $ | 3,062,754 | ||||||||||||||
EBITDA margin % | 11 | % | 23 | % | 15 | % | 15 | % | 21 | % | 20 | % | ||||||||||||||
Free Cash Flow | |||||||||||||||
For the Nine Months Ended | |||||||||||||||
Sep 30, 2016 | Sep 30, 2015 | ||||||||||||||
(in thousands) | |||||||||||||||
Net income | $ | 35,614 | $ | 203,506 | |||||||||||
Depreciation and amortization | 193,960 | 183,508 | |||||||||||||
Other increases in cash from operating activities | 33,176 | (13,954 | ) | ||||||||||||
Cash flow provided by operating activities | 262,750 | 373,060 | |||||||||||||
Purchases of property and equipment | (83,389 | ) | (139,208 | ) | |||||||||||
Free Cash Flow | $ | 179,361 | $ | 233,852 | |||||||||||
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 | % | ||||||||||||||||||
For the Three Months Ended September 30, 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 | $ | 52,417 | $ | 46,079 | $ | 28,841 | $ | 8,549 | $ | 1,635 | $ | (24,057 | ) | $ | 113,464 | |||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Restructuring expenses | 4,047 | 3,706 | 634 | 2,766 | 173 | 386 | 11,712 | |||||||||||||||||||||||
Total of adjustments | 4,047 | 3,706 | 634 | 2,766 | 173 | 386 | 11,712 | |||||||||||||||||||||||
Adjusted amounts | $ | 56,464 | $ | 49,785 | $ | 29,475 | $ | 11,315 | $ | 1,808 | $ | (23,671 | ) | $ | 125,176 | |||||||||||||||
Revenue | $ | 198,426 | $ | 220,039 | $ | 147,191 | $ | 95,609 | $ | 82,348 | $ | 743,613 | ||||||||||||||||||
Operating income % as reported in accordance with GAAP | 26 | % | 21 | % | 20 | % | 9 | % | 2 | % | 15 | % | ||||||||||||||||||
Operating income % using adjusted amounts | 28 | % | 23 | % | 20 | % | 12 | % | 2 | % | 17 | % | ||||||||||||||||||
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
(continued) | ||||||||||||||||||||||||||||||
Adjusted Operating Income and Margins by Segment | ||||||||||||||||||||||||||||||
For the Nine Months Ended September 30, 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 | $ | 21,162 | $ | 71,870 | $ | 32,055 | $ | 4,354 | $ | 10,478 | $ | (65,296 | ) | $ | 74,623 | |||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Inventory write-downs | 25,200 | 5,290 | — | — | — | — | 30,490 | |||||||||||||||||||||||
Allowance for bad debts | 340 | 1,770 | 127 | 3,332 | — | — | 5,569 | |||||||||||||||||||||||
Fixed asset write-offs | 10,840 | 2,950 | — | — | — | — | 13,790 | |||||||||||||||||||||||
Total of adjustments | 36,380 | 10,010 | 127 | 3,332 | — | — | 49,849 | |||||||||||||||||||||||
Adjusted amounts | $ | 57,542 | $ | 81,880 | $ | 32,182 | $ | 7,686 | $ | 10,478 | $ | (65,296 | ) | $ | 124,472 | |||||||||||||||
Revenue | $ | 413,769 | $ | 542,978 | $ | 378,883 | $ | 215,459 | $ | 232,069 | $ | 1,783,158 | ||||||||||||||||||
Operating income % as reported in accordance with GAAP | 5 | % | 13 | % | 8 | % | 2 | % | 5 | % | 4 | % | ||||||||||||||||||
Operating income % using adjusted amounts | 14 | % | 15 | % | 8 | % | 4 | % | 5 | % | 7 | % | ||||||||||||||||||
For the Nine Months Ended September 30, 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 | $ | 175,893 | $ | 138,379 | $ | 81,724 | $ | 18,150 | $ | 12,922 | $ | (99,014 | ) | $ | 328,054 | |||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Inventory write-downs | — | 9,025 | — | — | — | — | 9,025 | |||||||||||||||||||||||
Restructuring expenses | 4,047 | 3,706 | 634 | 2,766 | 173 | 386 | 11,712 | |||||||||||||||||||||||
Total of adjustments | 4,047 | 12,731 | 634 | 2,766 | 173 | 386 | 20,737 | |||||||||||||||||||||||
Adjusted amounts | $ | 179,940 | $ | 151,110 | $ | 82,358 | $ | 20,916 | $ | 13,095 | $ | (98,628 | ) | $ | 348,791 | |||||||||||||||
Revenue | $ | 634,299 | $ | 700,825 | $ | 473,087 | $ | 289,611 | $ | 242,866 | $ | 2,340,688 | ||||||||||||||||||
Operating income % as reported in accordance with GAAP | 28 | % | 20 | % | 17 | % | 6 | % | 5 | % | 14 | % | ||||||||||||||||||
Operating income % using adjusted amounts | 28 | % | 22 | % | 17 | % | 7 | % | 5 | % | 15 | % | ||||||||||||||||||
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
(continued) | ||||||||||||||||||||||||||||||
EDITDA 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. | Unallocated 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 | |||||||||||||||||||||||
Total of adjustments | 25,200 | 5,290 | — | — | — | — | 30,490 | |||||||||||||||||||||||
Adjusted EBITDA | $ | 45,060 | $ | 25,604 | $ | 23,604 | $ | 10,705 | $ | 5,146 | $ | (17,248 | ) | $ | 92,871 | |||||||||||||||
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 | % | ||||||||||||||||||
For the Three Months Ended September 30, 2015 | ||||||||||||||||||||||||||||||
Remotely Operated Vehicles | Subsea Products | Subsea Projects | Asset Integrity | Advanced Tech. | Unallocated Expenses and other | Total | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||
Operating income as reported in accordance with GAAP | $ | 52,417 | $ | 46,079 | $ | 28,841 | $ | 8,549 | $ | 1,635 | $ | (24,057 | ) | $ | 113,464 | |||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Depreciation and amortization | 35,094 | 12,681 | 9,782 | 2,663 | 618 | 1,184 | 62,022 | |||||||||||||||||||||||
Other pre-tax | — | — | — | — | — | (7,798 | ) | (7,798 | ) | |||||||||||||||||||||
EBITDA | 87,511 | 58,760 | 38,623 | 11,212 | 2,253 | (30,671 | ) | 167,688 | ||||||||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Restructuring expenses | 4,047 | 3,706 | 634 | 2,766 | 173 | 386 | 11,712 | |||||||||||||||||||||||
Total of adjustments | 4,047 | 3,706 | 634 | 2,766 | 173 | 386 | 11,712 | |||||||||||||||||||||||
Adjusted EBITDA | $ | 91,558 | $ | 62,466 | $ | 39,257 | $ | 13,978 | $ | 2,426 | $ | (30,285 | ) | $ | 179,400 | |||||||||||||||
Revenue | $ | 198,426 | $ | 220,039 | $ | 147,191 | $ | 95,609 | $ | 82,348 | $ | 743,613 | ||||||||||||||||||
Operating income % as reported in accordance with GAAP | 26 | % | 21 | % | 20 | % | 9 | % | 2 | % | 15 | % | ||||||||||||||||||
EBITDA Margin | 44 | % | 27 | % | 26 | % | 12 | % | 3 | % | 23 | % | ||||||||||||||||||
Adjusted EBITDA Margin | 46 | % | 28 | % | 27 | % | 15 | % | 3 | % | 24 | % |
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
(continued) | ||||||||||||||||||||||||||||||
EDITDA and Adjusted EBITDA and Margins by Segment | ||||||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2016 | ||||||||||||||||||||||||||||||
Remotely Operated Vehicles | Subsea Products | Subsea Projects | Asset Integrity | Advanced Tech. | Unallocated Expenses and other | Total | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||
Operating income as reported in accordance with GAAP | $ | 21,162 | $ | 71,870 | $ | 32,055 | $ | 4,354 | $ | 10,478 | $ | (65,296 | ) | $ | 74,623 | |||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Depreciation and amortization | 111,415 | 39,964 | 25,447 | 11,736 | 2,329 | 3,069 | 193,960 | |||||||||||||||||||||||
Other pre-tax | — | — | — | — | — | (7,140 | ) | (7,140 | ) | |||||||||||||||||||||
EBITDA | 132,577 | 111,834 | 57,502 | 16,090 | 12,807 | (69,367 | ) | 261,443 | ||||||||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Inventory write-downs | 25,200 | 5,290 | — | — | — | — | 30,490 | |||||||||||||||||||||||
Allowance for bad debts | 340 | 1,770 | 127 | 3,332 | — | — | 5,569 | |||||||||||||||||||||||
Total of adjustments | 25,540 | 7,060 | 127 | 3,332 | — | — | 36,059 | |||||||||||||||||||||||
Adjusted EBITDA | $ | 158,117 | $ | 118,894 | $ | 57,629 | $ | 19,422 | $ | 12,807 | $ | (69,367 | ) | $ | 297,502 | |||||||||||||||
Revenue | $ | 413,769 | $ | 542,978 | $ | 378,883 | $ | 215,459 | $ | 232,069 | $ | 1,783,158 | ||||||||||||||||||
Operating income % as reported in accordance with GAAP | 5 | % | 13 | % | 8 | % | 2 | % | 5 | % | 4 | % | ||||||||||||||||||
EBITDA Margin | 32 | % | 21 | % | 15 | % | 7 | % | 6 | % | 15 | % | ||||||||||||||||||
Adjusted EBITDA Margin | 38 | % | 22 | % | 15 | % | 9 | % | 6 | % | 17 | % | ||||||||||||||||||
For the Nine Months Ended September 30, 2015 | ||||||||||||||||||||||||||||||
Remotely Operated Vehicles | Subsea Products | Subsea Projects | Asset Integrity | Advanced Tech. | Unallocated Expenses and other | Total | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||
Operating income as reported in accordance with GAAP | $ | 175,893 | $ | 138,379 | $ | 81,724 | $ | 18,150 | $ | 12,922 | $ | (99,014 | ) | $ | 328,054 | |||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Depreciation and amortization | 107,236 | 38,247 | 24,140 | 8,222 | 1,879 | 3,784 | 183,508 | |||||||||||||||||||||||
Other pre-tax | — | — | — | — | — | (14,367 | ) | (14,367 | ) | |||||||||||||||||||||
EBITDA | 283,129 | 176,626 | 105,864 | 26,372 | 14,801 | (109,597 | ) | 497,195 | ||||||||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Inventory write-downs | — | 9,025 | — | — | — | — | 9,025 | |||||||||||||||||||||||
Restructuring expenses | 4,047 | 3,706 | 634 | 2,766 | 173 | 386 | 11,712 | |||||||||||||||||||||||
Total of adjustments | 4,047 | 12,731 | 634 | 2,766 | 173 | 386 | 20,737 | |||||||||||||||||||||||
Adjusted EBITDA | $ | 287,176 | $ | 189,357 | $ | 106,498 | $ | 29,138 | $ | 14,974 | $ | (109,211 | ) | $ | 517,932 | |||||||||||||||
Revenue | $ | 634,299 | $ | 700,825 | $ | 473,087 | $ | 289,611 | $ | 242,866 | $ | 2,340,688 | ||||||||||||||||||
Operating income % as reported in accordance with GAAP | 28 | % | 20 | % | 17 | % | 6 | % | 5 | % | 14 | % | ||||||||||||||||||
EBITDA Margin | 45 | % | 25 | % | 22 | % | 9 | % | 6 | % | 21 | % | ||||||||||||||||||
Adjusted EBITDA Margin | 45 | % | 27 | % | 23 | % | 10 | % | 6 | % | 22 | % |
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