U.S. markets close in 5 hours 33 minutes
  • S&P 500

    4,286.25
    -10.89 (-0.25%)
     
  • Dow 30

    33,988.47
    +76.03 (+0.22%)
     
  • Nasdaq

    13,016.88
    -111.18 (-0.85%)
     
  • Russell 2000

    2,009.06
    -12.28 (-0.61%)
     
  • Crude Oil

    89.61
    +0.20 (+0.22%)
     
  • Gold

    1,790.90
    -7.20 (-0.40%)
     
  • Silver

    20.12
    -0.15 (-0.75%)
     
  • EUR/USD

    1.0180
    +0.0016 (+0.15%)
     
  • 10-Yr Bond

    2.8530
    +0.0620 (+2.22%)
     
  • GBP/USD

    1.2097
    +0.0039 (+0.32%)
     
  • USD/JPY

    134.3680
    +1.0960 (+0.82%)
     
  • BTC-USD

    23,878.36
    -250.50 (-1.04%)
     
  • CMC Crypto 200

    567.68
    -4.24 (-0.74%)
     
  • FTSE 100

    7,537.64
    +28.49 (+0.38%)
     
  • Nikkei 225

    28,868.91
    -2.87 (-0.01%)
     

Oil States Announces Second Quarter 2022 Results of Operations

  • Oops!
    Something went wrong.
    Please try again later.
·21 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
Oil States International, Inc.
Oil States International, Inc.

HOUSTON, July 27, 2022 (GLOBE NEWSWIRE) -- Oil States International, Inc. (NYSE: OIS) reported a net loss of $5.1 million, or $0.08 per share, for the second quarter of 2022. During the second quarter of 2022, the Company generated revenues of $181.8 million and Consolidated EBITDA (Note A) of $17.0 million. These results compare to revenues of $164.0 million and Consolidated EBITDA of $14.5 million reported in the first quarter of 2022.

Second quarter 2022 highlights included:

  • Consolidated revenues and EBITDA increased 11% and 17% sequentially

  • Well Site Services revenues and EBITDA increased 14% and 61%, respectively from the first quarter

  • Offshore/Manufactured Products revenues increased 15% sequentially

  • Offshore/Manufactured Products acquired E-Flow Holdings Limited – a U.K.-based global provider of complimentary integrated handling, control, monitoring and instrumentation solutions – for cash consideration totaling $8 million

  • Received two 2022 Spotlight on New Technology® Awards from the Offshore Technology Conference for our Managed Pressure Drilling and Riser Gas Handling System and our Merlin™ 15K High-Pressure, High-Temperature Riser System

  • Purchased $6.5 million in principal amount of our 1.50% convertible senior notes

  • Agreed to settle the promissory note payable and related outstanding legal disputes with the seller of GEODynamics, Inc. in exchange for the payment of $10.0 million and issuance of approximately 1.9 million shares of the Company's common stock on July 1, 2022. The final settlement will be recorded in the third quarter of 2022

Oil States' President and Chief Executive Officer, Cindy B. Taylor, stated,

"With improving industry fundamentals and our continuous focus on capital and cost discipline, consolidated revenues and EBITDA grew sequentially for a third consecutive quarter totaling $181.8 million and $17.0 million, respectively, in the second quarter.

"Revenues reported by our Offshore/Manufactured Products segment increased 15% from the first quarter of 2022 – driven by a 21% increase in project-driven revenues coupled with higher demand for short-cycle products. Segment EBITDA for our Offshore/Manufactured Products segment totaled $14.7 million. Backlog totaled $241 million as of June 30, with quarterly bookings of $77 million, yielding a quarterly book-to-bill ratio of 0.8x for the second quarter and 0.9x year-to-date.

"Our Well Site Services segment revenues increased 14% sequentially driven by higher land-based completion and production activity. Segment EBITDA increased $3.4 million, or 61%, from the prior quarter to $8.9 million, reflecting revenue growth and improved fixed cost coverage.

"Second quarter revenues in our Downhole Technologies segment decreased 4% from the first quarter, due to a transitory reduction in customer demand for perforating products internationally. Our Downhole Technologies segment reported Segment EBITDA of $2.9 million.

"In the second quarter, our investments in technology and innovation were again recognized by the Offshore Technology Conference, with two 2022 Spotlight on New Technology® Awards for our Managed Pressure Drilling and Riser Gas Handling System and our Merlin™ 15K High-Pressure, High-Temperature Riser System. Additionally, during the quarter OSI Renewables™ introduced the most recent addition to our growing portfolio of new technologies for the offshore wind energy market – a Fixed Tension Leg Platform floating wind solution that leverages our deepwater expertise.

"Finally, we are pleased to announce that we settled the promissory note and resolved outstanding legal disputes with the seller of GEODynamics."

BUSINESS SEGMENT RESULTS

(See Segment Data tables)

Offshore/Manufactured Products

Offshore/Manufactured Products reported revenues of $96.5 million and Segment EBITDA of $14.7 million in the second quarter of 2022, compared to revenues of $84.1 million and Segment EBITDA of $15.6 million reported in the first quarter of 2022. Revenues increased 15% sequentially, driven primarily by a 21% increase in project-driven revenues and higher customer demand for short-cycle products, while margins declined due to a shift in product mix from the first quarter of 2022. Segment EBITDA margin in the second quarter of 2022 was 15%, compared to 19% in the first quarter of 2022.

On April 14, 2022, the segment acquired E-Flow Control Holdings Limited ("E-Flow"), a U.K.-based global provider of complimentary integrated handling, control, monitoring and instrumentation solutions. The purchase price of $8.1 million was funded with cash on-hand.

Backlog totaled $241 million as of June 30, 2022, a 9% sequential decrease from March 31, 2022. Second quarter 2022 bookings totaled $77 million, yielding a quarterly book-to-bill ratio of 0.8x and a year-to-date ratio of 0.9x.

Well Site Services

Well Site Services reported revenues of $54.8 million and Segment EBITDA of $8.9 million in the second quarter of 2022, compared to revenues of $48.2 million and Segment EBITDA of $5.5 million reported in the first quarter of 2022. Segment EBITDA margin in the second quarter of 2022 was 16%, compared to 11% in the first quarter of 2022.

Downhole Technologies

Downhole Technologies reported revenues of $30.5 million and Segment EBITDA of $2.9 million in the second quarter of 2022, compared to revenues of $31.8 million and Segment EBITDA of $2.9 million reported in the first quarter of 2022. Segment EBITDA margin was 9% in both the second and first quarters of 2022.

Corporate

Corporate expenses in the second quarter of 2022 totaled $9.6 million, which included $0.6 million of non-cash costs associated with the settlement of legal disputes with the seller of GEODynamics, Inc.

Interest Expense, Net

Net interest expense totaled $2.6 million in the second quarter of 2022, which included $0.5 million of non-cash amortization of deferred debt issuance costs.

Income Taxes

The Company recognized tax expense of $1.8 million on a pre-tax loss of $3.4 million during the second quarter of 2022. In the first quarter of 2022, the Company recognized a tax expense of $3.4 million on a pre-tax loss of $6.0 million. Income tax expense in the first and second quarters of 2022 included the impact of valuation allowances recorded against the Company's deferred tax assets as well as certain non-deductible expenses and discrete tax items.

Financial Condition

No borrowings were outstanding under the Company's asset-based revolving credit facility (the "ABL Facility") at June 30, 2022. Cash on-hand declined from $39.2 million at March 31, 2022 to $22.2 million at June 30, 2022 reflecting the Company's second quarter acquisition of E-Flow and purchases of $6.5 million in principal amount of its 1.5% convertible senior notes due February 2023. Liquidity (cash plus borrowing availability) totaled $84.1 million at June 30, 2022, with amounts available to be drawn under the ABL Facility totaling $61.8 million.

Additionally, on June 28, 2022, the Company agreed to pay $10.0 million and issue approximately 1.9 million shares of its common stock (having a market value of $10.3 million on July 1, 2022) to settle the promissory note payable (together with related accrued interest) and resolve outstanding legal disputes with the seller of GEODynamics, Inc. The cash payment and issuance of shares of common stock of the Company were made on July 1, 2022 and will be recorded in the third quarter of 2022.

The Company's total debt represented 20% and 21% of combined total debt and stockholders' equity as of June 30, 2022 and March 31, 2022, respectively.

Conference Call Information

The call is scheduled for July 28, 2022 at 10:00 a.m. central daylight time, is being webcast and can be accessed from the Company's website at www.ir.oilstatesintl.com. Participants may also join the conference call by dialing 1 (866) 374-5140 in the United States or by dialing +1 (404) 400-0571 internationally and using the passcode 40967423#. A replay of the conference call will be available one and a half hours after the completion of the call and can be accessed from the Company's website at www.ir.oilstatesintl.com.

About Oil States

Oil States International, Inc. is a global provider of manufactured products and services to customers in the energy, industrial and military sectors. The Company's manufactured products include highly engineered capital equipment and consumable products. Oil States is headquartered in Houston, Texas with manufacturing and service facilities strategically located across the globe. Oil States is publicly traded on the New York Stock Exchange under the symbol "OIS".

For more information on the Company, please visit Oil States International's website at www.oilstatesintl.com.

Forward Looking Statements

The foregoing contains forward-looking statements within the meaning of Section 27A 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 included herein are based on current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Such risks and uncertainties include, among others, the level of supply of and demand for oil and natural gas, fluctuations in the prices thereof, the cyclical nature of the oil and natural gas industry, geopolitical tensions, regulatory pressures related to environmental, social and governance considerations the impact of the COVID-19 pandemic on the Company and its customers, the other risks associated with the general nature of the energy service industry and other factors discussed in the "Business" and "Risk Factors" sections of the Company's Annual Report on Form 10-K for the year ended December 31, 2021 and the subsequently filed Quarterly Report on Form 10-Q and Periodic Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof, and, except as required by law, the Company undertakes no obligation to update those statements or to publicly announce the results of any revisions to any of those statements to reflect future events or developments.

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)

 

Three Months Ended

 

Six Months Ended

 

June 30, 
2022

 

March 31, 
2022

 

June 30, 
2021

 

June 30, 
2022

 

June 30, 
2021

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Products

$

99,033

 

 

$

85,761

 

 

$

78,038

 

 

$

184,794

 

 

$

139,483

 

Services

 

82,801

 

 

 

78,283

 

 

 

67,686

 

 

 

161,084

 

 

 

131,830

 

 

 

181,834

 

 

 

164,044

 

 

 

145,724

 

 

 

345,878

 

 

 

271,313

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

Product costs

 

79,388

 

 

 

64,801

 

 

 

63,926

 

 

 

144,189

 

 

 

113,389

 

Service costs

 

62,768

 

 

 

61,803

 

 

 

53,706

 

 

 

124,571

 

 

 

106,553

 

Cost of revenues (exclusive of depreciation and amortization expense presented below)

 

142,156

 

 

 

126,604

 

 

 

117,632

 

 

 

268,760

 

 

 

219,942

 

Selling, general and administrative expense

 

23,757

 

 

 

23,833

 

 

 

22,092

 

 

 

47,590

 

 

 

43,317

 

Depreciation and amortization expense

 

17,239

 

 

 

17,817

 

 

 

20,909

 

 

 

35,056

 

 

 

42,429

 

Impairments of fixed and lease assets

 

 

 

 

 

 

 

2,794

 

 

 

 

 

 

3,444

 

Other operating (income) expense, net

 

(228

)

 

 

126

 

 

 

(85

)

 

 

(102

)

 

 

(439

)

 

 

182,924

 

 

 

168,380

 

 

 

163,342

 

 

 

351,304

 

 

 

308,693

 

Operating loss

 

(1,090

)

 

 

(4,336

)

 

 

(17,618

)

 

 

(5,426

)

 

 

(37,380

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(2,638

)

 

 

(2,672

)

 

 

(2,699

)

 

 

(5,310

)

 

 

(5,024

)

Other income, net(1)

 

376

 

 

 

1,025

 

 

 

1,820

 

 

 

1,401

 

 

 

5,780

 

Loss before income taxes

 

(3,352

)

 

 

(5,983

)

 

 

(18,497

)

 

 

(9,335

)

 

 

(36,624

)

Income tax (provision) benefit

 

(1,792

)

 

 

(3,441

)

 

 

3,226

 

 

 

(5,233

)

 

 

5,543

 

Net loss

$

(5,144

)

 

$

(9,424

)

 

$

(15,271

)

 

$

(14,568

)

 

$

(31,081

)

 

 

 

 

 

 

 

 

 

 

Net loss per share:

 

 

 

 

 

 

 

 

 

Basic

$

(0.08

)

 

$

(0.16

)

 

$

(0.25

)

 

$

(0.24

)

 

$

(0.52

)

Diluted

 

(0.08

)

 

 

(0.16

)

 

 

(0.25

)

 

 

(0.24

)

 

 

(0.52

)

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

60,704

 

 

 

60,498

 

 

 

60,317

 

 

 

60,601

 

 

 

60,207

 

Diluted

 

60,704

 

 

 

60,498

 

 

 

60,317

 

 

 

60,601

 

 

 

60,207

 

________________

(1)  Other income (expense), net included non-cash gains of $0.4 million and $4.0 million, respectively, in the three and six months ended June 30, 2021 recognized in connection with purchases of $6.4 million and $131.4 million, respectively, principal amount of the 2023 Notes.

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(In Thousands)

 

June 30, 2022

 

December 31, 2021

 

(Unaudited)

 

 

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

22,246

 

 

$

52,852

 

Accounts receivable, net

 

204,387

 

 

 

186,080

 

Inventories, net

 

179,819

 

 

 

168,573

 

Prepaid expenses and other current assets

 

19,682

 

 

 

19,222

 

Total current assets

 

426,134

 

 

 

426,727

 

 

 

 

 

Property, plant, and equipment, net

 

314,898

 

 

 

338,583

 

Operating lease assets, net

 

24,843

 

 

 

25,388

 

Goodwill, net

 

79,485

 

 

 

76,412

 

Other intangible assets, net

 

179,591

 

 

 

185,749

 

Other noncurrent assets

 

27,352

 

 

 

32,889

 

Total assets

$

1,052,303

 

 

$

1,085,748

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

Current liabilities:

 

 

 

Current portion of long-term debt

$

37,595

 

 

$

18,262

 

Accounts payable

 

54,738

 

 

 

63,343

 

Accrued liabilities

 

46,344

 

 

 

43,401

 

Current operating lease liabilities

 

6,046

 

 

 

6,481

 

Income taxes payable

 

3,163

 

 

 

2,564

 

Deferred revenue

 

47,883

 

 

 

43,236

 

Total current liabilities

 

195,769

 

 

 

177,287

 

 

 

 

 

Long-term debt

 

134,871

 

 

 

160,488

 

Long-term operating lease liabilities

 

22,703

 

 

 

23,452

 

Deferred income taxes

 

6,510

 

 

 

3,637

 

Other noncurrent liabilities

 

20,509

 

 

 

25,058

 

Total liabilities

 

380,362

 

 

 

389,922

 

 

 

 

 

Stockholders' equity:

 

 

 

Common stock

 

747

 

 

 

739

 

Additional paid-in capital

 

1,108,631

 

 

 

1,105,135

 

Retained earnings

 

266,999

 

 

 

281,567

 

Accumulated other comprehensive loss

 

(77,850

)

 

 

(66,031

)

Treasury stock

 

(626,586

)

 

 

(625,584

)

Total stockholders' equity

 

671,941

 

 

 

695,826

 

Total liabilities and stockholders' equity

$

1,052,303

 

 

$

1,085,748

 

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)

 

Six Months Ended June 30,

 

2022

 

2021

 

(Unaudited)

 

 

Cash flows from operating activities:

 

 

 

Net loss

$

(14,568

)

 

$

(31,081

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

Depreciation and amortization expense

 

35,056

 

 

 

42,429

 

Settlement of disputes with seller of GEODynamics, Inc.

 

620

 

 

 

 

Impairments of fixed and lease assets

 

 

 

 

3,444

 

Stock-based compensation expense

 

3,504

 

 

 

4,703

 

Amortization of debt discount and deferred financing costs

 

944

 

 

 

1,366

 

Deferred income tax provision (benefit)

 

2,584

 

 

 

(6,834

)

Gains on extinguishment of 1.50% convertible senior notes

 

(157

)

 

 

(4,022

)

Gains on disposals of assets

 

(1,185

)

 

 

(1,632

)

Other, net

 

517

 

 

 

375

 

Changes in operating assets and liabilities, net of effect from acquired business:

 

 

 

Accounts receivable

 

(20,469

)

 

 

(6,962

)

Inventories

 

(14,664

)

 

 

(4,458

)

Accounts payable and accrued liabilities

 

(5,994

)

 

 

11,896

 

Deferred revenue

 

4,647

 

 

 

1,780

 

Other operating assets and liabilities, net

 

(870

)

 

 

2,929

 

Net cash flows provided by (used in) operating activities

 

(10,035

)

 

 

13,933

 

 

 

 

 

Cash flows from investing activities:

 

 

 

Capital expenditures

 

(6,453

)

 

 

(7,311

)

Proceeds from disposition of property and equipment

 

1,652

 

 

 

3,422

 

Acquisition of business, net of cash acquired

 

(8,125

)

 

 

 

Other, net

 

(85

)

 

 

(326

)

Net cash flows used in investing activities

 

(13,011

)

 

 

(4,215

)

 

 

 

 

Cash flows from financing activities:

 

 

 

Revolving credit facility borrowings

 

9,725

 

 

 

12,571

 

Revolving credit facility repayments

 

(9,725

)

 

 

(31,571

)

Issuance of 4.75% convertible senior notes

 

 

 

 

135,000

 

Purchases of 1.50% convertible senior notes

 

(6,272

)

 

 

(125,952

)

Other debt and finance lease activity, net

 

(359

)

 

 

119

 

Payment of financing costs

 

(74

)

 

 

(7,779

)

Shares added to treasury stock as a result of net share settlements due to vesting of stock awards

 

(1,002

)

 

 

(1,500

)

Net cash flows used in financing activities

 

(7,707

)

 

 

(19,112

)

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

147

 

 

 

33

 

Net change in cash and cash equivalents

 

(30,606

)

 

 

(9,361

)

Cash and cash equivalents, beginning of period

 

52,852

 

 

 

72,011

 

Cash and cash equivalents, end of period

$

22,246

 

 

$

62,650

 

 

 

 

 

Cash paid for:

 

 

 

Interest

$

4,105

 

 

$

2,256

 

Income taxes, net

 

291

 

 

 

920

 

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

SEGMENT DATA
(In Thousands)
(unaudited)

 

Three Months Ended

 

Six Months Ended

 

June 30, 
2022

 

March 31, 
2022(2)

 

June 30, 
2021(3)

 

June 30, 
2022(4)

 

June 30, 
2021(5)

Revenues:

 

 

 

 

 

 

 

 

 

Offshore/Manufactured Products(1):

 

 

 

 

 

 

 

 

 

Project-driven products

$

41,098

 

 

$

33,844

 

 

$

31,826

 

 

$

74,942

 

 

$

53,200

 

Short-cycle products

 

23,611

 

 

 

20,624

 

 

 

16,030

 

 

 

44,235

 

 

 

28,280

 

Other products and services

 

31,758

 

 

 

29,644

 

 

 

29,052

 

 

 

61,402

 

 

 

56,037

 

Total Offshore/Manufactured Products

 

96,467

 

 

 

84,112

 

 

 

76,908

 

 

 

180,579

 

 

 

137,517

 

Well Site Services

 

54,819

 

 

 

48,172

 

 

 

42,056

 

 

 

102,991

 

 

 

81,606

 

Downhole Technologies

 

30,548

 

 

 

31,760

 

 

 

26,760

 

 

 

62,308

 

 

 

52,190

 

Total revenues

$

181,834

 

 

$

164,044

 

 

$

145,724

 

 

$

345,878

 

 

$

271,313

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss):

 

 

 

 

 

 

 

 

 

Offshore/Manufactured Products

$

9,441

 

 

$

10,196

 

 

$

4,810

 

 

$

19,637

 

 

$

5,881

 

Well Site Services

 

601

 

 

 

(3,395

)

 

 

(11,590

)

 

 

(2,794

)

 

 

(21,443

)

Downhole Technologies

 

(1,485

)

 

 

(1,505

)

 

 

(2,295

)

 

 

(2,990

)

 

 

(3,910

)

Corporate

 

(9,647

)

 

 

(9,632

)

 

 

(8,543

)

 

 

(19,279

)

 

 

(17,908

)

Total operating loss

$

(1,090

)

 

$

(4,336

)

 

$

(17,618

)

 

$

(5,426

)

 

$

(37,380

)

________________

(1)  Disaggregated revenue data is provided to supplement the Segment Data.

(2)  Operating income (loss) for the three months ended March 31, 2022 included $0.8 million of bad debt expense on receivables from Russia-based customers within the Offshore/Manufactured Products segment.

(3)  Operating income (loss) for the three months ended June 30, 2021 included non-cash operating lease asset impairment charges of $2.8 million and restructuring charges of $2.4 million related to the Well Site Services segment. In the Downhole Technologies segment, operating income (loss) included $0.2 million of restructuring charges.

(4)  Operating income (loss) for the six months ended June 30, 2022 included $0.8 million of bad debt expense on receivables from Russia-based customers within the Offshore/Manufactured Products segment.

(5)  Operating income (loss) for the six months ended June 30, 2021 included $0.3 million of severance and restructuring charges related to the Offshore/Manufactured Products segment. In the Well Site Services segment, operating income (loss) included non-cash fixed asset and operating lease impairment charges of $3.4 million and severance and restructuring charges of $3.7 million. In the Downhole Technologies segment, operating income (loss) included severance and restructuring charges of $0.5 million. In Corporate, operating income (loss) included $1.6 million of severance charges.

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
SEGMENT EBITDA AND ADJUSTED SEGMENT EBITDA (B)
(In Thousands)
(unaudited)

 

Three Months Ended

 

Six Months Ended

 

June 30,
2022

 

March 31,
2022

 

June 30,
2021

 

June 30,
2022

 

June 30,
2021

Offshore/Manufactured Products:

 

 

 

 

 

 

 

 

 

Operating income

$

9,441

 

 

$

10,196

 

 

$

4,810

 

 

$

19,637

 

 

$

5,881

 

Other income (expense), net

 

45

 

 

 

41

 

 

 

(70

)

 

 

86

 

 

 

(132

)

Depreciation and amortization expense

 

5,249

 

 

 

5,330

 

 

 

5,557

 

 

 

10,579

 

 

 

11,026

 

Segment EBITDA

 

14,735

 

 

 

15,567

 

 

 

10,297

 

 

 

30,302

 

 

 

16,775

 

Severance and restructuring charges

 

 

 

 

 

 

 

 

 

 

 

 

 

282

 

Adjusted Segment EBITDA

$

14,735

 

 

$

15,567

 

 

$

10,297

 

 

$

30,302

 

 

$

17,057

 

 

 

 

 

 

 

 

 

 

 

Well Site Services:

 

 

 

 

 

 

 

 

 

Operating income (loss)

$

601

 

 

$

(3,395

)

 

$

(11,590

)

 

$

(2,794

)

 

$

(21,443

)

Other income

 

878

 

 

 

986

 

 

 

1,505

 

 

 

1,864

 

 

 

1,892

 

Depreciation and amortization expense

 

7,395

 

 

 

7,932

 

 

 

10,642

 

 

 

15,327

 

 

 

22,110

 

Impairment of fixed and lease assets

 

 

 

 

 

 

 

2,794

 

 

 

 

 

 

3,444

 

Segment EBITDA

 

8,874

 

 

 

5,523

 

 

 

3,351

 

 

 

14,397

 

 

 

6,003

 

Severance and restructuring charges

 

 

 

 

 

 

 

2,351

 

 

 

 

 

 

3,657

 

Adjusted Segment EBITDA

$

8,874

 

 

$

5,523

 

 

$

5,702

 

 

$

14,397

 

 

$

9,660

 

 

 

 

 

 

 

 

 

 

 

Downhole Technologies:

 

 

 

 

 

 

 

 

 

Operating loss

$

(1,485

)

 

$

(1,505

)

 

$

(2,295

)

 

$

(2,990

)

 

$

(3,910

)

Other expense, net

 

(84

)

 

 

(2

)

 

 

 

 

 

(86

)

 

 

(2

)

Depreciation and amortization expense

 

4,423

 

 

 

4,384

 

 

 

4,521

 

 

 

8,807

 

 

 

8,910

 

Segment EBITDA

 

2,854

 

 

 

2,877

 

 

 

2,226

 

 

 

5,731

 

 

 

4,998

 

Severance and restructuring charges

 

 

 

 

 

 

 

203

 

 

 

 

 

 

478

 

Adjusted Segment EBITDA

$

2,854

 

 

$

2,877

 

 

$

2,429

 

 

$

5,731

 

 

$

5,476

 

 

 

 

 

 

 

 

 

 

 

Corporate:

 

 

 

 

 

 

 

 

 

Operating loss

$

(9,647

)

 

$

(9,632

)

 

$

(8,543

)

 

$

(19,279

)

 

$

(17,908

)

Other income (expense), net

 

(463

)

 

 

 

 

 

385

 

 

 

(463

)

 

 

4,022

 

Depreciation and amortization expense

 

172

 

 

 

171

 

 

 

189

 

 

 

343

 

 

 

383

 

Settlement of disputes with seller of GEODynamics, Inc.

 

620

 

 

 

 

 

 

 

 

 

620

 

 

 

 

Gains on extinguishment of 1.50% convertible senior notes

 

(157

)

 

 

 

 

 

(385

)

 

 

(157

)

 

 

(4,022

)

EBITDA

 

(9,475

)

 

 

(9,461

)

 

 

(8,354

)

 

 

(18,936

)

 

 

(17,525

)

Severance charges

 

 

 

 

 

 

 

 

 

 

 

 

 

1,555

 

Adjusted EBITDA

$

(9,475

)

 

$

(9,461

)

 

$

(8,354

)

 

$

(18,936

)

 

$

(15,970

)

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
CONSOLIDATED EBITDA AND ADJUSTED CONSOLIDATED EBITDA (A)
(In Thousands)
(unaudited)

 

Three Months Ended

 

Six Months Ended

 

June 30,
2022

 

March 31,
2022

 

June 30,
2021

 

June 30,
2022

 

June 30,
2021

 

 

 

 

 

 

 

 

 

 

Net loss

$

(5,144

)

 

$

(9,424

)

 

$

(15,271

)

 

$

(14,568

)

 

$

(31,081

)

Interest expense, net

 

2,638

 

 

 

2,672

 

 

 

2,699

 

 

 

5,310

 

 

 

5,024

 

Income tax provision (benefit)

 

1,792

 

 

 

3,441

 

 

 

(3,226

)

 

 

5,233

 

 

 

(5,543

)

Depreciation and amortization expense

 

17,239

 

 

 

17,817

 

 

 

20,909

 

 

 

35,056

 

 

 

42,429

 

Impairments of fixed and lease assets

 

 

 

 

 

 

 

2,794

 

 

 

 

 

 

3,444

 

Settlement of disputes with seller of GEODynamics, Inc.

 

620

 

 

 

 

 

 

 

 

 

620

 

 

 

 

Gains on extinguishment of 1.50% convertible senior notes

 

(157

)

 

 

 

 

 

(385

)

 

 

(157

)

 

 

(4,022

)

Consolidated EBITDA

 

16,988

 

 

 

14,506

 

 

 

7,520

 

 

 

31,494

 

 

 

10,251

 

Severance and restructuring charges

 

 

 

 

 

 

 

2,554

 

 

 

 

 

 

5,972

 

Adjusted Consolidated EBITDA

$

16,988

 

 

$

14,506

 

 

$

10,074

 

 

$

31,494

 

 

$

16,223

 

________________

(A)   The terms Consolidated EBITDA and Adjusted Consolidated EBITDA consist of net loss plus net interest expense, taxes, depreciation and amortization expense, and certain non-cash charges, less gains on extinguishment of 1.50% convertible senior notes (the "2023 Notes") and adjustments for certain other items. Consolidated EBITDA and Adjusted Consolidated 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 loss or cash flow measures prepared in accordance with generally accepted accounting principles or as measures of profitability or liquidity. Additionally, Consolidated EBITDA and Adjusted Consolidated EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included Consolidated EBITDA and Adjusted Consolidated EBITDA as supplemental disclosures because its management believes that Consolidated EBITDA and Adjusted Consolidated EBITDA provide useful information regarding its ability to service debt and to fund capital expenditures and provides investors a helpful measure for comparing its operating performance with the performance of other companies that have different financing and capital structures or tax rates. The Company uses Consolidated EBITDA and Adjusted Consolidated EBITDA to compare and to monitor the performance of the Company and 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 table above sets forth reconciliations of Consolidated EBITDA and Adjusted Consolidated EBITDA to net loss, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles.

(B)   The terms EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment EBITDA consist of operating income (loss) plus other income (expense), depreciation and amortization expense, and certain non-cash charges, less gains on extinguishment of the 2023 Notes and adjustments for certain other items. EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment 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 operating income (loss) or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. Additionally, EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment EBITDA as supplemental disclosures because its management believes that EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment EBITDA provide useful information regarding its ability to service debt and to fund capital expenditures and provides investors a helpful measure for comparing its operating performance with the performance of other companies that have different financing and capital structures or tax rates. The Company uses EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment 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 tables above set forth reconciliations of EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment EBITDA to operating income (loss), which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles.

Company Contact:

Lloyd A. Hajdik
Oil States International, Inc.
Executive Vice President, Chief Financial Officer and Treasurer
(713) 652-0582
SOURCE: Oil States International, Inc.