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)) |
OCEANEERING INTERNATIONAL, INC. | |||
Date: | July 25, 2018 | By: | /S/ W. CARDON GERNER |
W. Cardon Gerner | |||
Senior Vice President and Chief Accounting Officer |
Three Months Ended | Six Months Ended | |||||||||||||||||||
Jun 30, | Mar 31, | Jun 30, | ||||||||||||||||||
2018 | 2017 | 2018 | 2018 | 2017 | ||||||||||||||||
Revenue | $ | 478,674 | $ | 515,036 | $ | 416,413 | $ | 895,087 | $ | 961,212 | ||||||||||
Gross Margin | 29,728 | 53,571 | 18,828 | 48,556 | 98,426 | |||||||||||||||
Income (Loss) from Operations | (19,637 | ) | 9,390 | (27,149 | ) | (46,786 | ) | 9,240 | ||||||||||||
Net Income (Loss) | (33,076 | ) | 2,132 | (49,133 | ) | (82,209 | ) | (5,402 | ) | |||||||||||
Diluted Earnings (Loss) Per Share | $ | (0.34 | ) | $ | 0.02 | $ | (0.50 | ) | $ | (0.83 | ) | $ | (0.06 | ) | ||||||
OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||||||||||
Jun 30, 2018 | Dec 31, 2017 | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||
Current Assets (including cash and cash equivalents of $339,541 and $430,316) | $ | 1,114,245 | $ | 1,187,402 | |||||||||||||||||||||||
Net Property and Equipment | 1,014,004 | 1,064,204 | |||||||||||||||||||||||||
Other Assets | 774,499 | 772,344 | |||||||||||||||||||||||||
TOTAL ASSETS | $ | 2,902,748 | $ | 3,023,950 | |||||||||||||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||||||
Current Liabilities | $ | 427,376 | $ | 435,797 | |||||||||||||||||||||||
Long-term Debt | 782,228 | 792,312 | |||||||||||||||||||||||||
Other Long-term Liabilities | 122,610 | 131,323 | |||||||||||||||||||||||||
Equity | 1,570,534 | 1,664,518 | |||||||||||||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 2,902,748 | $ | 3,023,950 | |||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||||||||||||
Jun 30, 2018 | Jun 30, 2017 | Mar 31, 2018 | Jun 30, 2018 | Jun 30, 2017 | |||||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||||||||
Revenue | $ | 478,674 | $ | 515,036 | $ | 416,413 | $ | 895,087 | $ | 961,212 | |||||||||||||||||
Cost of services and products | 448,946 | 461,465 | 397,585 | 846,531 | 862,786 | ||||||||||||||||||||||
Gross Margin | 29,728 | 53,571 | 18,828 | 48,556 | 98,426 | ||||||||||||||||||||||
Selling, general and administrative expense | 49,365 | 44,181 | 45,977 | 95,342 | 89,186 | ||||||||||||||||||||||
Income (loss) from Operations | (19,637 | ) | 9,390 | (27,149 | ) | (46,786 | ) | 9,240 | |||||||||||||||||||
Interest income | 2,950 | 2,045 | 2,592 | 5,542 | 3,382 | ||||||||||||||||||||||
Interest expense | (8,802 | ) | (7,599 | ) | (9,371 | ) | (18,173 | ) | (13,867 | ) | |||||||||||||||||
Equity losses of unconsolidated affiliates | (737 | ) | (394 | ) | (843 | ) | (1,580 | ) | (1,374 | ) | |||||||||||||||||
Other income (expense), net | (3,556 | ) | (58 | ) | (8,474 | ) | (12,030 | ) | (2,614 | ) | |||||||||||||||||
Income (loss) before Income Taxes | (29,782 | ) | 3,384 | (43,245 | ) | (73,027 | ) | (5,233 | ) | ||||||||||||||||||
Provision (benefit) for income taxes | 3,294 | 1,252 | 5,888 | 9,182 | 169 | ||||||||||||||||||||||
Net Income (loss) | $ | (33,076 | ) | $ | 2,132 | $ | (49,133 | ) | $ | (82,209 | ) | $ | (5,402 | ) | |||||||||||||
Weighted average diluted shares outstanding | 98,531 | 98,751 | 98,383 | 98,457 | 98,201 | ||||||||||||||||||||||
Diluted Earnings (Loss) per Share | $ | (0.34 | ) | $ | 0.02 | $ | (0.50 | ) | $ | (0.83 | ) | $ | (0.06 | ) | |||||||||||||
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 Six Months Ended | |||||||||||||||||||||||
Jun 30, 2018 | Jun 30, 2017 | Mar 31, 2018 | Jun 30, 2018 | Jun 30, 2017 | ||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||
Remotely Operated Vehicles | Revenue | $ | 107,426 | $ | 103,432 | $ | 85,594 | $ | 193,020 | $ | 197,454 | |||||||||||||
Gross Margin | $ | 12,176 | $ | 16,659 | $ | 4,955 | $ | 17,131 | $ | 29,681 | ||||||||||||||
Operating Income (Loss) | $ | 4,542 | $ | 10,376 | $ | (2,398 | ) | $ | 2,144 | $ | 16,301 | |||||||||||||
Operating Income (Loss)% | 4 | % | 10 | % | (3 | )% | 1 | % | 8 | % | ||||||||||||||
Days available | 25,386 | 25,300 | 25,138 | 50,524 | 50,519 | |||||||||||||||||||
Days utilized | 13,654 | 12,267 | 11,034 | 24,688 | 23,755 | |||||||||||||||||||
Utilization | 54 | % | 48 | % | 44 | % | 49 | % | 47 | % | ||||||||||||||
Subsea Products | Revenue | $ | 121,704 | $ | 174,893 | $ | 126,688 | $ | 248,392 | $ | 325,532 | |||||||||||||
Gross Margin | $ | 16,075 | $ | 22,762 | $ | 15,005 | $ | 31,080 | $ | 47,753 | ||||||||||||||
Operating Income | $ | 2,295 | $ | 10,552 | $ | 1,755 | $ | 4,050 | $ | 22,035 | ||||||||||||||
Operating Income % | 2 | % | 6 | % | 1 | % | 2 | % | 7 | % | ||||||||||||||
Backlog at end of period | $ | 245,000 | $ | 328,000 | $ | 240,000 | $ | 245,000 | $ | 328,000 | ||||||||||||||
Subsea Projects | Revenue | $ | 78,036 | $ | 75,545 | $ | 56,860 | $ | 134,896 | $ | 138,501 | |||||||||||||
Gross Margin | $ | (5,145 | ) | $ | 6,462 | $ | 1,117 | $ | (4,028 | ) | $ | 10,486 | ||||||||||||
Operating Income (Loss) | $ | (10,358 | ) | $ | 3,000 | $ | (2,359 | ) | $ | (12,717 | ) | $ | 3,187 | |||||||||||
Operating Income (Loss) % | (13 | )% | 4 | % | (4 | )% | (9 | )% | 2 | % | ||||||||||||||
Asset Integrity | Revenue | $ | 67,422 | $ | 58,192 | $ | 61,288 | $ | 128,710 | $ | 110,850 | |||||||||||||
Gross Margin | $ | 9,461 | $ | 10,004 | $ | 8,018 | $ | 17,479 | $ | 18,385 | ||||||||||||||
Operating Income | $ | 3,357 | $ | 3,755 | $ | 1,679 | $ | 5,036 | $ | 6,022 | ||||||||||||||
Operating Income % | 5 | % | 6 | % | 3 | % | 4 | % | 5 | % | ||||||||||||||
Advanced Technologies | Revenue | $ | 104,086 | $ | 102,974 | $ | 85,983 | $ | 190,069 | $ | 188,875 | |||||||||||||
Gross Margin | $ | 13,999 | $ | 14,133 | $ | 7,822 | $ | 21,821 | $ | 24,205 | ||||||||||||||
Operating Income | $ | 7,886 | $ | 7,632 | $ | 1,668 | $ | 9,554 | $ | 12,658 | ||||||||||||||
Operating Income % | 8 | % | 7 | % | 2 | % | 5 | % | 7 | % | ||||||||||||||
Unallocated Expenses | ||||||||||||||||||||||||
Gross Margin | $ | (16,838 | ) | $ | (16,449 | ) | $ | (18,089 | ) | $ | (34,927 | ) | $ | (32,084 | ) | |||||||||
Operating Expense | $ | (27,359 | ) | $ | (25,925 | ) | $ | (27,494 | ) | $ | (54,853 | ) | $ | (50,963 | ) | |||||||||
TOTAL | Revenue | $ | 478,674 | $ | 515,036 | $ | 416,413 | $ | 895,087 | $ | 961,212 | |||||||||||||
Gross Margin | $ | 29,728 | $ | 53,571 | $ | 18,828 | $ | 48,556 | $ | 98,426 | ||||||||||||||
Operating Income (Loss) | $ | (19,637 | ) | $ | 9,390 | $ | (27,149 | ) | $ | (46,786 | ) | $ | 9,240 | |||||||||||
Operating Income (Loss) % | (4 | )% | 2 | % | (7 | )% | (5 | )% | 1 | % | ||||||||||||||
SELECTED CASH FLOW INFORMATION | ||||||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||
Jun 30, 2018 | Jun 30, 2017 | Mar 31, 2018 | Jun 30, 2018 | Jun 30, 2017 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Capital expenditures, including acquisitions | $ | 27,798 | $ | 23,493 | $ | 94,130 | $ | 121,928 | $ | 41,300 | ||||||||||||||
Depreciation and Amortization: | ||||||||||||||||||||||||
Energy Services and Products | ||||||||||||||||||||||||
Remotely Operated Vehicles | $ | 28,269 | $ | 29,036 | $ | 27,642 | $ | 55,911 | $ | 58,265 | ||||||||||||||
Subsea Products | 14,914 | 12,785 | 14,025 | 28,939 | 25,784 | |||||||||||||||||||
Subsea Projects | 13,053 | 7,781 | 8,313 | 21,366 | 15,861 | |||||||||||||||||||
Asset Integrity | 1,836 | 1,780 | 1,848 | 3,684 | 3,240 | |||||||||||||||||||
Total Energy Services and Products | 58,072 | 51,382 | 51,828 | 109,900 | 103,150 | |||||||||||||||||||
Advanced Technologies | 737 | 784 | 766 | 1,503 | 1,581 | |||||||||||||||||||
Unallocated Expenses | 1,034 | 1,138 | 1,534 | 2,568 | 2,236 | |||||||||||||||||||
Total depreciation and amortization | $ | 59,843 | $ | 53,304 | $ | 54,128 | $ | 113,971 | $ | 106,967 | ||||||||||||||
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | |||||||||||||||||||||||||||
(continued) | |||||||||||||||||||||||||||
Adjusted Net Income (Loss) and Diluted Earnings per Share | |||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||
Jun 30, 2018 | Jun 30, 2017 | Mar 31, 2018 | |||||||||||||||||||||||||
Net Income | Diluted EPS | Net Income | Diluted EPS | Net Income | Diluted EPS | ||||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||||||||
Net Income (Loss) and Diluted EPS as reported in accordance with GAAP | $ | (33,076 | ) | $ | (0.34 | ) | $ | 2,132 | $ | 0.02 | $ | (49,133 | ) | $ | (0.50 | ) | |||||||||||
Pre tax adjustments for the effects of: | |||||||||||||||||||||||||||
Property & equipment write-offs | 4,233 | — | — | ||||||||||||||||||||||||
Intangible asset write-offs | 3,458 | — | — | ||||||||||||||||||||||||
Foreign currency (gains) losses | 3,418 | (20 | ) | 8,315 | |||||||||||||||||||||||
Total pre-tax adjustments | 11,109 | (20 | ) | 8,315 | |||||||||||||||||||||||
Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods | (2,173 | ) | 7 | (1,746 | ) | ||||||||||||||||||||||
Discrete tax items (1) | 1,180 | — | 2,400 | ||||||||||||||||||||||||
Difference in tax provision on income before taxes in accordance with GAAP (2) | — | 68 | — | ||||||||||||||||||||||||
Total of adjustments | 10,116 | 55 | 8,969 | ||||||||||||||||||||||||
Adjusted Net Income (Loss) | $ | (22,960 | ) | $ | (0.23 | ) | $ | 2,187 | $ | 0.02 | $ | (40,164 | ) | $ | (0.41 | ) | |||||||||||
Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss) | 98,531 | 98,751 | 98,383 | ||||||||||||||||||||||||
For the Six Months Ended | |||||||||||||||||||||||||||
Jun 30, 2018 | Jun 30, 2017 | ||||||||||||||||||||||||||
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 | $ | (82,209 | ) | $ | (0.83 | ) | $ | (5,402 | ) | $ | (0.06 | ) | |||||||||||||||
Pre tax adjustments for the effects of: | |||||||||||||||||||||||||||
Property & equipment write-offs | 4,233 | — | |||||||||||||||||||||||||
Intangible asset write-offs | 3,458 | — | |||||||||||||||||||||||||
Foreign currency losses | 11,733 | 2,133 | |||||||||||||||||||||||||
Total pre tax adjustments | 19,424 | 2,133 | |||||||||||||||||||||||||
Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods | (3,919 | ) | (747 | ) | |||||||||||||||||||||||
Discrete tax items (1) | 3,580 | 2,106 | |||||||||||||||||||||||||
Difference in tax provision on income before taxes in accordance with GAAP (2) | — | (105 | ) | ||||||||||||||||||||||||
Total of adjustments | 19,085 | 3,387 | |||||||||||||||||||||||||
Adjusted net income | $ | (63,124 | ) | $ | (0.64 | ) | $ | (2,015 | ) | $ | (0.02 | ) | |||||||||||||||
Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss) | 98,457 | 98,201 | |||||||||||||||||||||||||
Notes: | |||||||||||||||||||||||||||
(1) | Discrete items consist of share-based compensation, uncertain tax positions and adjustments to previous estimates upon filing various international tax returns for the three and six months ended June 30, 2018 and share-based compensation for the three and six months ended June 30, 2017. | ||||||||||||||||||||||||||
(2) | For consistency in presentation, the difference in tax provision on income before taxes is computed using the U.S. statutory rate of 35% for 2017, in determining Adjusted Net Income (Loss) for the respective periods. This is not calculated for the three months and six months ended June 30, 2018 due to changes in U.S. tax law. | ||||||||||||||||||||||||||
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | |||||||||||||||||||||||||
(continued) | |||||||||||||||||||||||||
EBITDA and EBITDA Margins | |||||||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||||||||||
Jun 30, 2018 | Jun 30, 2017 | Mar 31, 2018 | Jun 30, 2018 | Jun 30, 2017 | |||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Net Income (Loss) | $ | (33,076 | ) | $ | 2,132 | $ | (49,133 | ) | $ | (82,209 | ) | $ | (5,402 | ) | |||||||||||
Depreciation and Amortization | 59,843 | 53,304 | 54,128 | 113,971 | 106,967 | ||||||||||||||||||||
Subtotal | 26,767 | 55,436 | 4,995 | 31,762 | 101,565 | ||||||||||||||||||||
Interest Expense, net of Interest Income | 5,852 | 5,554 | 6,779 | 12,631 | 10,485 | ||||||||||||||||||||
Amortization included in Interest Expense | (333 | ) | (283 | ) | (774 | ) | (1,107 | ) | (566 | ) | |||||||||||||||
Provision (Benefit) for Income Taxes | 3,294 | 1,252 | 5,888 | 9,182 | 169 | ||||||||||||||||||||
EBITDA | $ | 35,580 | $ | 61,959 | $ | 16,888 | $ | 52,468 | $ | 111,653 | |||||||||||||||
Revenue | $ | 478,674 | $ | 515,036 | $ | 416,413 | $ | 895,087 | $ | 961,212 | |||||||||||||||
EBITDA margin % | 7 | % | 12 | % | 4 | % | 6 | % | 12 | % | |||||||||||||||
2018 EBITDA Estimates | ||||||||||||||||
Low | High | |||||||||||||||
(in thousands) | ||||||||||||||||
Loss before income taxes | $ | (105,000 | ) | (85,000 | ) | |||||||||||
Depreciation and amortization | 215,000 | 215,000 | ||||||||||||||
Subtotal | 110,000 | 130,000 | ||||||||||||||
Interest expense, net of interest income | 30,000 | 30,000 | ||||||||||||||
EBITDA | $ | 140,000 | $ | 160,000 | ||||||||||||
Free Cash Flow | ||||||||||||||||
For the Six Months Ended | ||||||||||||||||
Jun 30, 2018 | Jun 30, 2017 | |||||||||||||||
(in thousands) | ||||||||||||||||
Net Loss | $ | (82,209 | ) | $ | (5,402 | ) | ||||||||||
Depreciation and amortization | 113,971 | 106,967 | ||||||||||||||
Other increases (decreases) in cash from operating activities | (16,077 | ) | 1,039 | |||||||||||||
Cash flow provided by operating activities | 15,685 | 102,604 | ||||||||||||||
Purchases of property and equipment | (53,530 | ) | (41,300 | ) | ||||||||||||
Free Cash Flow | $ | (37,845 | ) | $ | 61,304 |
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
(continued) | ||||||||||||||||||||||||||||||
Adjusted Operating Income (Loss) and Margins by Segment | ||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2018 | ||||||||||||||||||||||||||||||
Remotely Operated Vehicles | Subsea Products | Subsea Projects | Asset Integrity | Advanced Tech. | Unalloc. Expenses | Total | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||
Operating income (loss) as reported in accordance with GAAP | $ | 4,542 | $ | 2,295 | $ | (10,358 | ) | $ | 3,357 | $ | 7,886 | $ | (27,359 | ) | $ | (19,637 | ) | |||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Property & equipment write-offs | 617 | 1,531 | 2,085 | — | — | — | 4,233 | |||||||||||||||||||||||
Intangible asset write-offs | — | — | 3,458 | 3,458 | ||||||||||||||||||||||||||
Total of adjustments | 617 | 1,531 | 5,543 | — | — | — | 7,691 | |||||||||||||||||||||||
Adjusted operating income (loss) | $ | 5,159 | $ | 3,826 | $ | (4,815 | ) | $ | 3,357 | $ | 7,886 | $ | (27,359 | ) | $ | (11,946 | ) | |||||||||||||
Revenue | $ | 107,426 | $ | 121,704 | $ | 78,036 | $ | 67,422 | $ | 104,086 | $ | 478,674 | ||||||||||||||||||
Operating income (loss) % as reported in accordance with GAAP | 4 | % | 2 | % | (13 | )% | 5 | % | 8 | % | (4 | )% | ||||||||||||||||||
Operating income (loss)% using adjusted amounts | 5 | % | 3 | % | (6 | )% | 5 | % | 8 | % | (2 | )% | ||||||||||||||||||
For the Three Months Ended June 30, 2017 | ||||||||||||||||||||||||||||||
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 | $ | 10,376 | $ | 10,552 | $ | 3,000 | $ | 3,755 | $ | 7,632 | $ | (25,925 | ) | $ | 9,390 | |||||||||||||||
Adjusted operating income (loss) | $ | 10,376 | $ | 10,552 | $ | 3,000 | $ | 3,755 | $ | 7,632 | $ | (25,925 | ) | $ | 9,390 | |||||||||||||||
Revenue | $ | 103,432 | $ | 174,893 | $ | 75,545 | $ | 58,192 | $ | 102,974 | $ | 515,036 | ||||||||||||||||||
Operating income % as reported in accordance with GAAP | 10 | % | 6 | % | 4 | % | 6 | % | 7 | % | 2 | % | ||||||||||||||||||
Operating income % using adjusted amounts | 10 | % | 6 | % | 4 | % | 6 | % | 7 | % | 2 | % | ||||||||||||||||||
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
(continued) | ||||||||||||||||||||||||||||||
Adjusted Operating Income (Loss) and Margins by Segment | ||||||||||||||||||||||||||||||
For the Three Months Ended March 31, 2018 | ||||||||||||||||||||||||||||||
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 | $ | (2,398 | ) | $ | 1,755 | $ | (2,359 | ) | $ | 1,679 | $ | 1,668 | $ | (27,494 | ) | $ | (27,149 | ) | ||||||||||||
Adjusted operating income (loss) | $ | (2,398 | ) | $ | 1,755 | $ | (2,359 | ) | $ | 1,679 | $ | 1,668 | $ | (27,494 | ) | $ | (27,149 | ) | ||||||||||||
Revenue | $ | 85,594 | $ | 126,688 | $ | 56,860 | $ | 61,288 | $ | 85,983 | $ | 416,413 | ||||||||||||||||||
Operating income (loss) % as reported in accordance with GAAP | (3 | )% | 1 | % | (4 | )% | 3 | % | 2 | % | (7 | )% | ||||||||||||||||||
Operating income (loss) % using adjusted amounts | (3 | )% | 1 | % | (4 | )% | 3 | % | 2 | % | (7 | )% | ||||||||||||||||||
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
(continued) | ||||||||||||||||||||||||||||||
Adjusted Operating Income (Loss) and Margins by Segment | ||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2018 | ||||||||||||||||||||||||||||||
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 | $ | 2,144 | $ | 4,050 | $ | (12,717 | ) | $ | 5,036 | $ | 9,554 | $ | (54,853 | ) | $ | (46,786 | ) | |||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Property & equipment write-offs | 617 | 1,531 | 2,085 | — | — | — | 4,233 | |||||||||||||||||||||||
Intangible asset write-offs | — | — | 3,458 | — | — | — | 3,458 | |||||||||||||||||||||||
Total of adjustments | 617 | 1,531 | 5,543 | — | — | — | 7,691 | |||||||||||||||||||||||
Adjusted operating income (loss) | $ | 2,761 | $ | 5,581 | $ | (7,174 | ) | $ | 5,036 | $ | 9,554 | $ | (54,853 | ) | $ | (39,095 | ) | |||||||||||||
Revenue | $ | 193,020 | $ | 248,392 | $ | 134,896 | $ | 128,710 | $ | 190,069 | $ | 895,087 | ||||||||||||||||||
Operating income (loss)% as reported in accordance with GAAP | 1 | % | 2 | % | (9 | )% | 4 | % | 5 | % | (5 | )% | ||||||||||||||||||
Operating income (loss)% using adjusted amounts | 1 | % | 2 | % | (5 | )% | 4 | % | 5 | % | (4 | )% | ||||||||||||||||||
For the Six Months Ended June 30, 2017 | ||||||||||||||||||||||||||||||
Remotely Operated Vehicles | Subsea Products | Subsea Projects | Asset Integrity | Advanced Tech. | Unalloc. Expenses | Total | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||
Operating income as reported in accordance with GAAP | $ | 16,301 | $ | 22,035 | $ | 3,187 | $ | 6,022 | $ | 12,658 | $ | (50,963 | ) | $ | 9,240 | |||||||||||||||
Adjusted operating income | $ | 16,301 | $ | 22,035 | $ | 3,187 | $ | 6,022 | $ | 12,658 | $ | (50,963 | ) | $ | 9,240 | |||||||||||||||
Revenue | $ | 197,454 | $ | 325,532 | $ | 138,501 | $ | 110,850 | $ | 188,875 | $ | 961,212 | ||||||||||||||||||
Operating income % as reported in accordance with GAAP | 8 | % | 7 | % | 2 | % | 5 | % | 7 | % | 1 | % | ||||||||||||||||||
Operating income % using adjusted amounts | 8 | % | 7 | % | 2 | % | 5 | % | 7 | % | 1 | % | ||||||||||||||||||
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
(continued) | ||||||||||||||||||||||||||||||
EBITDA and Adjusted EBITDA and Margins by Segment | ||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2018 | ||||||||||||||||||||||||||||||
Remotely Operated Vehicles | Subsea Products | Subsea Projects | Asset Integrity | Advanced Tech. | Unalloc. Expenses and other | Total | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||
Operating income (loss) as reported in accordance with GAAP | $ | 4,542 | $ | 2,295 | $ | (10,358 | ) | $ | 3,357 | $ | 7,886 | $ | (27,359 | ) | $ | (19,637 | ) | |||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Depreciation and amortization | 28,269 | 14,914 | 13,053 | 1,836 | 737 | 1,034 | 59,843 | |||||||||||||||||||||||
Other pre-tax | — | — | — | — | — | (4,626 | ) | (4,626 | ) | |||||||||||||||||||||
EBITDA | 32,811 | 17,209 | 2,695 | 5,193 | 8,623 | (30,951 | ) | 35,580 | ||||||||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Foreign currency (gains) losses | — | — | — | — | — | 3,418 | 3,418 | |||||||||||||||||||||||
Total of adjustments | — | — | — | — | — | 3,418 | 3,418 | |||||||||||||||||||||||
Adjusted EBITDA | $ | 32,811 | $ | 17,209 | $ | 2,695 | $ | 5,193 | $ | 8,623 | $ | (27,533 | ) | $ | 38,998 | |||||||||||||||
Revenue | $ | 107,426 | $ | 121,704 | $ | 78,036 | $ | 67,422 | $ | 104,086 | $ | 478,674 | ||||||||||||||||||
Operating income (loss) % as reported in accordance with GAAP | 4 | % | 2 | % | (13 | )% | 5 | % | 8 | % | (4 | )% | ||||||||||||||||||
EBITDA Margin | 31 | % | 14 | % | 3 | % | 8 | % | 8 | % | 7 | % | ||||||||||||||||||
Adjusted EBITDA Margin | 31 | % | 14 | % | 3 | % | 8 | % | 8 | % | 8 | % | ||||||||||||||||||
For the Three Months Ended June 30, 2017 | ||||||||||||||||||||||||||||||
Remotely Operated Vehicles | Subsea Products | Subsea Projects | Asset Integrity | Advanced Tech. | Unalloc. Expenses and other | Total | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||
Operating income (loss) as reported in accordance with GAAP | $ | 10,376 | $ | 10,552 | $ | 3,000 | $ | 3,755 | $ | 7,632 | $ | (25,925 | ) | $ | 9,390 | |||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Depreciation and amortization | 29,036 | 12,785 | 7,781 | 1,780 | 784 | 1,138 | 53,304 | |||||||||||||||||||||||
Other pre-tax | — | — | — | — | — | (735 | ) | (735 | ) | |||||||||||||||||||||
EBITDA | 39,412 | 23,337 | 10,781 | 5,535 | 8,416 | (25,522 | ) | 61,959 | ||||||||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Foreign currency (gains) losses | — | — | — | — | — | (20 | ) | (20 | ) | |||||||||||||||||||||
Total of adjustments | — | — | — | — | — | (20 | ) | (20 | ) | |||||||||||||||||||||
Adjusted EBITDA | $ | 39,412 | $ | 23,337 | $ | 10,781 | $ | 5,535 | $ | 8,416 | $ | (25,542 | ) | $ | 61,939 | |||||||||||||||
Revenue | $ | 103,432 | $ | 174,893 | $ | 75,545 | $ | 58,192 | $ | 102,974 | $ | 515,036 | ||||||||||||||||||
Operating income % as reported in accordance with GAAP | 10 | % | 6 | % | 4 | % | 6 | % | 7 | % | 2 | % | ||||||||||||||||||
EBITDA Margin | 38 | % | 13 | % | 14 | % | 10 | % | 8 | % | 12 | % | ||||||||||||||||||
Adjusted EBITDA Margin | 38 | % | 13 | % | 14 | % | 10 | % | 8 | % | 12 | % |
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
(continued) | ||||||||||||||||||||||||||||||
EBITDA and Adjusted EBITDA and Margins by Segment | ||||||||||||||||||||||||||||||
For the Three Months Ended March 31, 2018 | ||||||||||||||||||||||||||||||
Remotely Operated Vehicles | Subsea Products | Subsea Projects | Asset Integrity | Advanced Tech. | Unalloc. Expenses and other | Total | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||
Operating income (loss) as reported in accordance with GAAP | $ | (2,398 | ) | $ | 1,755 | $ | (2,359 | ) | $ | 1,679 | $ | 1,668 | $ | (27,494 | ) | $ | (27,149 | ) | ||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Depreciation and amortization | 27,642 | 14,025 | 8,313 | 1,848 | 766 | 1,534 | 54,128 | |||||||||||||||||||||||
Other pre-tax | — | — | — | — | — | (10,091 | ) | (10,091 | ) | |||||||||||||||||||||
EBITDA | 25,244 | 15,780 | 5,954 | 3,527 | 2,434 | (36,051 | ) | 16,888 | ||||||||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Foreign currency (gains) losses | — | — | — | — | — | 8,315 | 8,315 | |||||||||||||||||||||||
— | — | — | — | — | 8,315 | 8,315 | ||||||||||||||||||||||||
Adjusted EBITDA | $ | 25,244 | $ | 15,780 | $ | 5,954 | $ | 3,527 | $ | 2,434 | $ | (27,736 | ) | $ | 25,203 | |||||||||||||||
Revenue | $ | 85,594 | $ | 126,688 | $ | 56,860 | $ | 61,288 | $ | 85,983 | $ | 416,413 | ||||||||||||||||||
Operating income (loss) % as reported in accordance with GAAP | (3 | )% | 1 | % | (4 | )% | 3 | % | 2 | % | (7 | )% | ||||||||||||||||||
EBITDA Margin | 29 | % | 12 | % | 10 | % | 6 | % | 3 | % | 4 | % | ||||||||||||||||||
Adjusted EBITDA Margin | 29 | % | 12 | % | 10 | % | 6 | % | 3 | % | 6 | % | ||||||||||||||||||
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
(continued) | ||||||||||||||||||||||||||||||
EBITDA and Adjusted EBITDA and Margins by Segment | ||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2018 | ||||||||||||||||||||||||||||||
Remotely Operated Vehicles | Subsea Products | Subsea Projects | Asset Integrity | Advanced Tech. | Unalloc. Expenses and other | Total | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||
Operating income (loss) as reported in accordance with GAAP | $ | 2,144 | $ | 4,050 | $ | (12,717 | ) | $ | 5,036 | $ | 9,554 | $ | (54,853 | ) | $ | (46,786 | ) | |||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Depreciation and amortization | 55,911 | 28,939 | 21,366 | 3,684 | 1,503 | 2,568 | 113,971 | |||||||||||||||||||||||
Other pre-tax | — | — | — | — | — | (14,717 | ) | (14,717 | ) | |||||||||||||||||||||
EBITDA | 58,055 | 32,989 | 8,649 | 8,720 | 11,057 | (67,002 | ) | 52,468 | ||||||||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Foreign currency (gains) losses | — | — | — | — | — | 11,733 | 11,733 | |||||||||||||||||||||||
Total of adjustments | — | — | — | — | — | 11,733 | 11,733 | |||||||||||||||||||||||
Adjusted EBITDA | $ | 58,055 | $ | 32,989 | $ | 8,649 | $ | 8,720 | $ | 11,057 | $ | (55,269 | ) | $ | 64,201 | |||||||||||||||
Revenue | $ | 193,020 | $ | 248,392 | $ | 134,896 | $ | 128,710 | $ | 190,069 | $ | 895,087 | ||||||||||||||||||
Operating income (loss)% as reported in accordance with GAAP | 1 | % | 2 | % | (9 | )% | 4 | % | 5 | % | (5 | )% | ||||||||||||||||||
EBITDA Margin | 30 | % | 13 | % | 6 | % | 7 | % | 6 | % | 6 | % | ||||||||||||||||||
Adjusted EBITDA Margin | 30 | % | 13 | % | 6 | % | 7 | % | 6 | % | 7 | % | ||||||||||||||||||
For the Six Months Ended June 30, 2017 | ||||||||||||||||||||||||||||||
Remotely Operated Vehicles | Subsea Products | Subsea Projects | Asset Integrity | Advanced Tech. | Unalloc. Expenses and other | Total | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||
Operating income (loss) as reported in accordance with GAAP | $ | 16,301 | $ | 22,035 | $ | 3,187 | $ | 6,022 | $ | 12,658 | $ | (50,963 | ) | $ | 9,240 | |||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Depreciation and amortization | 58,265 | 25,784 | 15,861 | 3,240 | 1,581 | 2,236 | 106,967 | |||||||||||||||||||||||
Other pre-tax | — | — | — | — | — | (4,554 | ) | (4,554 | ) | |||||||||||||||||||||
EBITDA | 74,566 | 47,819 | 19,048 | 9,262 | 14,239 | (53,281 | ) | 111,653 | ||||||||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Foreign currency (gains) losses | — | — | — | — | — | 2,133 | 2,133 | |||||||||||||||||||||||
Total of adjustments | — | — | — | — | — | 2,133 | 2,133 | |||||||||||||||||||||||
Adjusted EBITDA | $ | 74,566 | $ | 47,819 | $ | 19,048 | $ | 9,262 | $ | 14,239 | $ | (51,148 | ) | $ | 113,786 | |||||||||||||||
Revenue | $ | 197,454 | $ | 325,532 | $ | 138,501 | $ | 110,850 | $ | 188,875 | $ | 961,212 | ||||||||||||||||||
Operating income % as reported in accordance with GAAP | 8 | % | 7 | % | 2 | % | 5 | % | 7 | % | 1 | % | ||||||||||||||||||
EBITDA Margin | 38 | % | 15 | % | 14 | % | 8 | % | 8 | % | 12 | % | ||||||||||||||||||
Adjusted EBITDA Margin | 38 | % | 15 | % | 14 | % | 8 | % | 8 | % | 12 | % |
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