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Oil States Announces Third Quarter 2022 Results of Operations

Oil States International, Inc.
Oil States International, Inc.

HOUSTON, Oct. 27, 2022 (GLOBE NEWSWIRE) -- Oil States International, Inc. (NYSE: OIS) reported net income of $2.1 million, or $0.03 per share, for the third quarter of 2022. Reported results included a gain of $6.1 million ($4.6 million after-tax, or $0.07 per share) recognized in connection with the settlement of a litigation matter. During the third quarter of 2022, the Company generated revenues of $189.4 million and Adjusted Consolidated EBITDA (Note A) of $22.0 million. These results compare to revenues of $181.8 million, a net loss of $5.1 million ($0.08 per share) and Adjusted Consolidated EBITDA of $17.0 million reported in the second quarter of 2022.

Third quarter 2022 highlights included:

  • Generated cash flows from operations of $29.0 million

  • Consolidated revenues, net income and Adjusted Consolidated EBITDA improved $7.6 million, $7.3 million and $5.0 million sequentially, with all segments contributing sequentially improved results

  • Offshore/Manufactured Products backlog increased 7% sequentially to $258 million, with a book-to-bill ratio of 1.2x, augmented by one notable project award exceeding $10 million

  • Received $6.9 million in cash in connection with the settlement of litigation within our Offshore/Manufactured Products segment, which resulted in a gain of $6.1 million

  • Well Site Services segment revenues, operating income and Adjusted Segment EBITDA (Note B) increased 10%, 293% and 10%, respectively from the second quarter

  • Downhole Technologies segment revenues, operating loss and Adjusted Segment EBITDA improved 8%, 77% and 44%, respectively, with incremental Adjusted Segment EBITDA margins of 54%

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

"Our third quarter 2022 results continued to show improvement as the industry expands activity to support growing demand following the harsh economic impacts of the COVID-19 pandemic. We were net income positive for the quarter, with sequentially improved results from each of our business segments. We also generated cash flow from operations totaling $29.0 million in the quarter.

"Our Offshore/Manufactured Products segment revenues totaled $96.0 million in the third quarter, while operating income and Adjusted Segment EBITDA totaled $13.4 million and $18.3 million, respectively. Backlog totaled $258 million as of September 30, with quarterly bookings of $115 million, yielding a quarterly book-to-bill ratio of 1.2x.

"Revenues reported by our Well Site Services segment increased 10% from the second quarter of 2022 – driven by higher land-based drilling, completion and production activity – while revenues in our Downhole Technologies segment increased 8% from the second quarter, largely due to an increase in customer demand for perforating products.

"The outlook for our business continues to be strong, despite macroeconomic challenges due to low global inventories of crude oil and related products. We are very focused on proactively managing supply chain and inflationary impacts to our business in order to support the growing needs of our customer base.

"We remain focused on further deleveraging and improving stockholder returns through prudent capital allocation as well as enhancing our operational execution and furthering our shared services integration."

BUSINESS SEGMENT RESULTS

(See Segment Data tables)

Offshore/Manufactured Products

Offshore/Manufactured Products reported revenues of $96.0 million, operating income of $13.4 million and Adjusted Segment EBITDA of $18.3 million in the third quarter of 2022, compared to revenues of $96.5 million, operating income of $9.4 million and Adjusted Segment EBITDA of $14.7 million reported in the second quarter of 2022. During the third quarter of 2022, the segment settled litigation against certain service providers for $6.9 million in cash, which resulted in a recorded gain of $6.1 million. The impact of this benefit was partially offset by $6.9 million in low-margin product sales during the quarter. Adjusted Segment EBITDA margin in the third quarter of 2022 was 19%, compared to 15% in the second quarter of 2022.

Backlog totaled $258 million as of September 30, 2022, a sequential increase of $17 million, or 7%, from June 30, 2022. Third quarter 2022 bookings totaled $115 million, yielding a quarterly book-to-bill ratio of 1.2x and a year-to-date ratio of 1.0x.

Well Site Services

Well Site Services reported revenues of $60.5 million, operating income of $2.4 million and Adjusted Segment EBITDA of $9.7 million in the third quarter of 2022, compared to revenues of $54.8 million, operating income of $0.6 million and Adjusted Segment EBITDA of $8.9 million reported in the second quarter of 2022. Adjusted Segment EBITDA margin was 16% in both the third and second quarter of 2022.

Downhole Technologies

Downhole Technologies reported revenues of $32.8 million, an operating loss of $0.3 million and Adjusted Segment EBITDA of $4.1 million in the third quarter of 2022, compared to revenues of $30.5 million, an operating loss of $1.5 million and Adjusted Segment EBITDA of $2.9 million reported in the second quarter of 2022. Adjusted Segment EBITDA margin in the third quarter of 2022 was 12%, compared to 9% in the second quarter of 2022.

Corporate

Corporate operating expenses in the third quarter of 2022 totaled $10.3 million.

Interest Expense, Net

Net interest expense totaled $2.6 million in the third 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 $0.8 million on pre-tax income of $2.9 million during the third quarter of 2022. In the second quarter of 2022, the Company recognized tax expense of $1.8 million on a pre-tax loss of $3.4 million.

Financial Condition

On July 1, 2022, the Company paid $10.0 million in cash and issued approximately 1.9 million shares of its common stock (having a market value of $10.3 million) to fully settle the $17.5 million promissory note payable (together with related accrued interest of $2.2 million) and resolve outstanding legal disputes with the seller of GEODynamics, Inc.

No borrowings were outstanding under the Company's asset-based revolving credit facility (the "ABL Facility") at September 30, 2022. Cash on-hand increased from $22.2 million at June 30, 2022 to $33.1 million at September 30, 2022. Liquidity (cash plus borrowing availability) totaled $113.0 million at September 30, 2022, with amounts available to be drawn under the ABL Facility totaling $79.9 million.

The Company's total debt represented 19% and 20% of combined total debt and stockholders' equity as of September 30, 2022 and June 30, 2022, respectively.

Conference Call Information

The call is scheduled for October 28, 2022 at 9:00 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 75627345#. 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 Reports 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

 

Nine Months Ended

 

September 30,
2022

 

June 30,
2022

 

September 30,
2021

 

September 30,
2022

 

September 30,
2021

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

 

Revenues:

 

 

 

 

 

 

 

 

 

Products

$

99,743

 

 

$

99,033

 

 

$

70,409

 

 

$

284,537

 

 

$

209,892

 

Services

 

89,651

 

 

 

82,801

 

 

 

70,119

 

 

 

250,735

 

 

 

201,949

 

 

 

189,394

 

 

 

181,834

 

 

 

140,528

 

 

 

535,272

 

 

 

411,841

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

Product costs

 

81,576

 

 

 

79,388

 

 

 

60,310

 

 

 

225,765

 

 

 

173,699

 

Service costs

 

69,723

 

 

 

62,768

 

 

 

56,897

 

 

 

194,294

 

 

 

163,450

 

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

 

151,299

 

 

 

142,156

 

 

 

117,207

 

 

 

420,059

 

 

 

337,149

 

Selling, general and administrative expense

 

23,374

 

 

 

23,757

 

 

 

20,078

 

 

 

70,964

 

 

 

63,395

 

Depreciation and amortization expense

 

16,413

 

 

 

17,239

 

 

 

19,657

 

 

 

51,469

 

 

 

62,086

 

Impairments of fixed and lease assets

 

 

 

 

 

 

 

 

 

 

 

 

 

3,444

 

Other operating income, net(1)

 

(6,750

)

 

 

(228

)

 

 

(275

)

 

 

(6,852

)

 

 

(714

)

 

 

184,336

 

 

 

182,924

 

 

 

156,667

 

 

 

535,640

 

 

 

465,360

 

Operating income (loss)

 

5,058

 

 

 

(1,090

)

 

 

(16,139

)

 

 

(368

)

 

 

(53,519

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(2,637

)

 

 

(2,638

)

 

 

(2,569

)

 

 

(7,947

)

 

 

(7,593

)

Other income, net(2)

 

491

 

 

 

376

 

 

 

2,137

 

 

 

1,892

 

 

 

7,917

 

Income (loss) before income taxes

 

2,912

 

 

 

(3,352

)

 

 

(16,571

)

 

 

(6,423

)

 

 

(53,195

)

Income tax (provision) benefit

 

(769

)

 

 

(1,792

)

 

 

3,529

 

 

 

(6,002

)

 

 

9,072

 

Net income (loss)

$

2,143

 

 

$

(5,144

)

 

$

(13,042

)

 

$

(12,425

)

 

$

(44,123

)

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

Basic

$

0.03

 

 

$

(0.08

)

 

$

(0.22

)

 

$

(0.20

)

 

$

(0.73

)

Diluted

 

0.03

 

 

 

(0.08

)

 

 

(0.22

)

 

 

(0.20

)

 

 

(0.73

)

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

62,674

 

 

 

60,704

 

 

 

60,377

 

 

 

61,292

 

 

 

60,264

 

Diluted

 

62,676

 

 

 

60,704

 

 

 

60,377

 

 

 

61,292

 

 

 

60,264

 


 

 

 

(1)

Other operating income, net included a gain of $6.1 million in the three and nine months ended September 30, 2022 recognized in connection with the settlement of outstanding litigation against certain service providers.

(2)

Other income, net included non-cash gains of $4.0 million in the nine months ended September 30, 2021 recognized in connection with purchases of $131.4 million principal amount of the 2023 Notes.


OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(In Thousands)

 

 

September 30, 2022

 

December 31, 2021

 

 

(Unaudited)

 

 

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

33,103

 

 

$

52,852

 

Accounts receivable, net

 

 

209,278

 

 

 

186,080

 

Inventories, net

 

 

181,628

 

 

 

168,573

 

Prepaid expenses and other current assets

 

 

18,164

 

 

 

19,222

 

Total current assets

 

 

442,173

 

 

 

426,727

 

 

 

 

 

 

Property, plant, and equipment, net

 

 

305,067

 

 

 

338,583

 

Operating lease assets, net

 

 

24,072

 

 

 

25,388

 

Goodwill, net

 

 

78,579

 

 

 

76,412

 

Other intangible assets, net

 

 

174,182

 

 

 

185,749

 

Other noncurrent assets

 

 

26,297

 

 

 

32,889

 

Total assets

 

$

1,050,370

 

 

$

1,085,748

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Current portion of long-term debt

 

$

20,026

 

 

$

18,262

 

Accounts payable

 

 

60,684

 

 

 

63,343

 

Accrued liabilities

 

 

51,691

 

 

 

43,401

 

Current operating lease liabilities

 

 

6,276

 

 

 

6,481

 

Income taxes payable

 

 

4,795

 

 

 

2,564

 

Deferred revenue

 

 

50,732

 

 

 

43,236

 

Total current liabilities

 

 

194,204

 

 

 

177,287

 

 

 

 

 

 

Long-term debt

 

 

134,972

 

 

 

160,488

 

Long-term operating lease liabilities

 

 

21,584

 

 

 

23,452

 

Deferred income taxes

 

 

5,923

 

 

 

3,637

 

Other noncurrent liabilities

 

 

19,547

 

 

 

25,058

 

Total liabilities

 

 

376,230

 

 

 

389,922

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

Common stock

 

 

766

 

 

 

739

 

Additional paid-in capital

 

 

1,120,607

 

 

 

1,105,135

 

Retained earnings

 

 

269,142

 

 

 

281,567

 

Accumulated other comprehensive loss

 

 

(89,789

)

 

 

(66,031

)

Treasury stock

 

 

(626,586

)

 

 

(625,584

)

Total stockholders' equity

 

 

674,140

 

 

 

695,826

 

Total liabilities and stockholders' equity

 

$

1,050,370

 

 

$

1,085,748

 


OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)

 

Nine Months Ended September 30,

 

2022

 

2021

 

(Unaudited)

 

 

Cash flows from operating activities:

 

 

 

Net loss

$

(12,425

)

 

$

(44,123

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

Depreciation and amortization expense

 

51,469

 

 

 

62,086

 

Settlement of disputes with seller of GEODynamics, Inc.

 

620

 

 

 

 

Impairments of inventories

 

 

 

 

2,113

 

Impairments of fixed and lease assets

 

 

 

 

3,444

 

Stock-based compensation expense

 

5,167

 

 

 

6,251

 

Amortization of debt discount and deferred financing costs

 

1,416

 

 

 

1,839

 

Deferred income tax provision (benefit)

 

1,295

 

 

 

(10,340

)

Gains on extinguishment of 1.50% convertible senior notes

 

(157

)

 

 

(4,022

)

Gains on disposals of assets

 

(1,538

)

 

 

(3,558

)

Other, net

 

616

 

 

 

325

 

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

 

 

 

Accounts receivable

 

(27,745

)

 

 

1,112

 

Inventories

 

(18,680

)

 

 

(10,767

)

Accounts payable and accrued liabilities

 

8,873

 

 

 

13,708

 

Deferred revenue

 

7,496

 

 

 

(872

)

Other operating assets and liabilities, net

 

2,586

 

 

 

3,376

 

Net cash flows provided by operating activities

 

18,993

 

 

 

20,572

 

 

 

 

 

Cash flows from investing activities:

 

 

 

Capital expenditures

 

(13,263

)

 

 

(10,977

)

Proceeds from disposition of property and equipment

 

2,211

 

 

 

6,160

 

Acquisition of business, net of cash acquired

 

(8,125

)

 

 

 

Other, net

 

(168

)

 

 

(511

)

Net cash flows used in investing activities

 

(19,345

)

 

 

(5,328

)

 

 

 

 

Cash flows from financing activities:

 

 

 

Revolving credit facility borrowings

 

9,830

 

 

 

12,782

 

Revolving credit facility repayments

 

(9,830

)

 

 

(31,782

)

Payment of promissory note to seller of GEODynamics, Inc.

 

(10,000

)

 

 

 

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 repayments, net

 

(541

)

 

 

(55

)

Payment of financing costs

 

(81

)

 

 

(7,785

)

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

 

(1,002

)

 

 

(1,595

)

Net cash flows used in financing activities

 

(17,896

)

 

 

(19,387

)

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

(1,501

)

 

 

(307

)

Net change in cash and cash equivalents

 

(19,749

)

 

 

(4,450

)

Cash and cash equivalents, beginning of period

 

52,852

 

 

 

72,011

 

Cash and cash equivalents, end of period

$

33,103

 

 

$

67,561

 

 

 

 

 

Cash paid (received) for:

 

 

 

Interest

$

4,605

 

 

$

2,785

 

Income taxes, net

 

(67

)

 

 

1,272

 


OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

SEGMENT DATA
(In Thousands)
(unaudited)

 

Three Months Ended

 

Nine Months Ended

 

September 30,
2022(2)

 

June 30,
2022

 

September 30,
2021(3)

 

September 30,
2022(4)

 

September 30,
2021(5)

Revenues:

 

 

 

 

 

 

 

 

 

Offshore/Manufactured Products(1):

 

 

 

 

 

 

 

 

 

Project-driven products

$

38,911

 

 

$

41,098

 

 

$

25,294

 

 

$

113,853

 

 

$

78,494

 

Short-cycle products

 

23,710

 

 

 

23,611

 

 

 

18,682

 

 

 

67,945

 

 

 

46,962

 

Other products and services

 

33,416

 

 

 

31,758

 

 

 

25,027

 

 

 

94,818

 

 

 

81,064

 

Total Offshore/Manufactured Products

 

96,037

 

 

 

96,467

 

 

 

69,003

 

 

 

276,616

 

 

 

206,520

 

Well Site Services

 

60,509

 

 

 

54,819

 

 

 

45,998

 

 

 

163,500

 

 

 

127,604

 

Downhole Technologies

 

32,848

 

 

 

30,548

 

 

 

25,527

 

 

 

95,156

 

 

 

77,717

 

Total revenues

$

189,394

 

 

$

181,834

 

 

$

140,528

 

 

$

535,272

 

 

$

411,841

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss):

 

 

 

 

 

 

 

 

 

Offshore/Manufactured Products

$

13,373

 

 

$

9,441

 

 

$

1,764

 

 

$

33,010

 

 

$

7,645

 

Well Site Services

 

2,359

 

 

 

601

 

 

 

(5,250

)

 

 

(435

)

 

 

(26,693

)

Downhole Technologies

 

(342

)

 

 

(1,485

)

 

 

(5,035

)

 

 

(3,332

)

 

 

(8,945

)

Corporate

 

(10,332

)

 

 

(9,647

)

 

 

(7,618

)

 

 

(29,611

)

 

 

(25,526

)

Total operating income (loss)

$

5,058

 

 

$

(1,090

)

 

$

(16,139

)

 

$

(368

)

 

$

(53,519

)


 

 

 

(1)

Disaggregated revenue data is provided to supplement the Segment Data.

(2)

Operating income (loss) for the three months ended September 30, 2022 included a gain of $6.1 million related to the Offshore/Manufactured Products segment's settlement of outstanding litigation against certain service provides.

(3)

Operating income (loss) for the three months ended September 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 severance and restructuring charges of $0.4 million. In the Downhole Technologies segment, operating income (loss) included a non-cash inventory impairment charge of $2.1 million and severance and restructuring charges of $0.1 million.

(4)

Operating income (loss) for the nine months ended September 30, 2022 included a $6.1 million gain on settlement of litigation and $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 nine months ended September 30, 2021 included $0.5 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 $4.0 million. In the Downhole Technologies segment, operating income (loss) included a non-cash inventory impairment charge of $2.1 million and severance and restructuring charges of $1.3 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
ADJUSTED SEGMENT EBITDA (B)
(In Thousands)
(unaudited)

 

Three Months Ended

 

Nine Months Ended

 

September 30,
2022

 

June 30,
2022

 

September 30,
2021

 

September 30,
2022

 

September 30,
2021

Offshore/Manufactured Products:

 

 

 

 

 

 

 

 

 

Operating income

$

13,373

 

 

$

9,441

 

 

$

1,764

 

 

$

33,010

 

 

$

7,645

 

Other income (expense), net

 

(141

)

 

 

45

 

 

 

881

 

 

 

(55

)

 

 

749

 

Depreciation and amortization expense

 

5,072

 

 

 

5,249

 

 

 

5,662

 

 

 

15,651

 

 

 

16,688

 

Severance and restructuring charges

 

 

 

 

 

 

 

256

 

 

 

 

 

 

538

 

Adjusted Segment EBITDA

$

18,304

 

 

$

14,735

 

 

$

8,563

 

 

$

48,606

 

 

$

25,620

 

 

 

 

 

 

 

 

 

 

 

Well Site Services:

 

 

 

 

 

 

 

 

 

Operating income (loss)

$

2,359

 

 

$

601

 

 

$

(5,250

)

 

$

(435

)

 

$

(26,693

)

Other income, net

 

632

 

 

 

878

 

 

 

1,260

 

 

 

2,496

 

 

 

3,152

 

Depreciation and amortization expense

 

6,732

 

 

 

7,395

 

 

 

9,531

 

 

 

22,059

 

 

 

31,641

 

Impairment of fixed and lease assets

 

 

 

 

 

 

 

 

 

 

 

 

 

3,444

 

Severance and restructuring charges

 

 

 

 

 

 

 

352

 

 

 

 

 

 

4,009

 

Adjusted Segment EBITDA

$

9,723

 

 

$

8,874

 

 

$

5,893

 

 

$

24,120

 

 

$

15,553

 

 

 

 

 

 

 

 

 

 

 

Downhole Technologies:

 

 

 

 

 

 

 

 

 

Operating loss

$

(342

)

 

$

(1,485

)

 

$

(5,035

)

 

$

(3,332

)

 

$

(8,945

)

Other expense, net

 

 

 

 

(84

)

 

 

(4

)

 

 

(86

)

 

 

(6

)

Depreciation and amortization expense

 

4,442

 

 

 

4,423

 

 

 

4,226

 

 

 

13,249

 

 

 

13,136

 

Severance and restructuring charges

 

 

 

 

 

 

 

129

 

 

 

 

 

 

607

 

Adjusted Segment EBITDA

$

4,100

 

 

$

2,854

 

 

$

1,429

 

 

$

9,831

 

 

$

6,905

 

 

 

 

 

 

 

 

 

 

 

Corporate:

 

 

 

 

 

 

 

 

 

Operating loss

$

(10,332

)

 

$

(9,647

)

 

$

(7,618

)

 

$

(29,611

)

 

$

(25,526

)

Other income (expense), net

 

 

 

 

(463

)

 

 

 

 

 

(463

)

 

 

4,022

 

Depreciation and amortization expense

 

167

 

 

 

172

 

 

 

238

 

 

 

510

 

 

 

621

 

Settlement of disputes with seller of GEODynamics, Inc.

 

 

 

 

620

 

 

 

 

 

 

620

 

 

 

 

Gains on extinguishment of 1.50% convertible senior notes

 

 

 

 

(157

)

 

 

 

 

 

(157

)

 

 

(4,022

)

Severance charges

 

 

 

 

 

 

 

 

 

 

 

 

 

1,555

 

Adjusted EBITDA

$

(10,165

)

 

$

(9,475

)

 

$

(7,380

)

 

$

(29,101

)

 

$

(23,350

)


OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

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

 

Three Months Ended

 

Nine Months Ended

 

September 30,
2022

 

June 30,
2022

 

September 30,
2021

 

September 30,
2022

 

September 30,
2021

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

2,143

 

$

(5,144

)

 

$

(13,042

)

 

$

(12,425

)

 

$

(44,123

)

Interest expense, net

 

2,637

 

 

2,638

 

 

 

2,569

 

 

 

7,947

 

 

 

7,593

 

Income tax provision (benefit)

 

769

 

 

1,792

 

 

 

(3,529

)

 

 

6,002

 

 

 

(9,072

)

Depreciation and amortization expense

 

16,413

 

 

17,239

 

 

 

19,657

 

 

 

51,469

 

 

 

62,086

 

Impairments of fixed and lease assets

 

 

 

 

 

 

 

 

 

 

 

 

3,444

 

Settlement of disputes with seller of GEODynamics, Inc.

 

 

 

620

 

 

 

 

 

 

620

 

 

 

 

Gains on extinguishment of 1.50% convertible senior notes

 

 

 

(157

)

 

 

 

 

 

(157

)

 

 

(4,022

)

Severance and restructuring charges

 

 

 

 

 

 

737

 

 

 

 

 

 

6,709

 

Adjusted Consolidated EBITDA

$

21,962

 

$

16,988

 

 

$

8,505

 

 

$

53,456

 

 

$

24,728

 


 

 

 

(A)

The term Adjusted Consolidated EBITDA consists of net income (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. Adjusted Consolidated EBITDA is not a measure of financial performance under generally accepted accounting principles ("GAAP") and should not be considered in isolation from or as a substitute for net income (loss) or cash flow measures prepared in accordance with GAAP or as a measure of profitability or liquidity. Additionally, Adjusted Consolidated EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included Adjusted Consolidated EBITDA as a supplemental disclosure because its management believes that Adjusted Consolidated EBITDA provides 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 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 Adjusted Consolidated EBITDA to net income (loss), which is the most directly comparable measure of financial performance calculated under GAAP.

(B)

The terms Adjusted 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. Adjusted EBITDA and Adjusted Segment EBITDA are not measures of financial performance under GAAP and should not be considered in isolation from or as a substitute for operating income (loss) or cash flow measures prepared in accordance with GAAP or as a measure of profitability or liquidity. Additionally, Adjusted EBITDA and Adjusted Segment EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included Adjusted EBITDA and Adjusted Segment EBITDA as supplemental disclosures because its management believes that Adjusted 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 Adjusted 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 Adjusted EBITDA and Adjusted Segment EBITDA to operating income (loss), which is the most directly comparable measure of financial performance calculated under GAAP.


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.