:

Oil States is focused
on sustained shareholder
value creation.

Reconciliation of Non-GAAP Financial Measures

The terms Consolidated EBITDA and Adjusted Consolidated EBITDA consist of net income (loss) from continuing operations plus net interest expense, taxes, depreciation and amortization expense, and 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 income (loss) from continuing operations or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure 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 a supplemental disclosure 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 a reconciliation of Consolidated EBITDA and Adjusted Consolidated EBITDA to net income (loss) from continuing operations, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles.

  Year Ending Dec 2016 (Update) Year Ending Dec 2015 (Update) Year Ending Dec 2014 (Update) Year Ending Dec 2013 (Restated) Year Ending Dec 2012 (Restated)
Net Sales 694.44 1.10M 1.82M 1.63M 1.52M
Revenue 694.44 1.10M 1.82M 1.63M 1.52M
Total Revenue 694.44 1.10M 1.82M 1.63M 1.52M
Cost of Revenue 526.77 785.70 1.21M 1.11M 1.05M
Cost of Revenue, Total 526.77 785.70 1.21M 1.11M 1.05M
Gross Profit 167.67 314.28 613.73 515.97 464.07
Selling/General/Administrative Expense 124.03 132.66 169.43 150.97 125.29
Selling/General/Administrative Expenses, Total 124.03 132.66 169.43 150.97 125.29
Depreciation 118.72 131.26 124.78 109.23 88.75
Depreciation/Amortization 118.72 131.26 124.78 109.23 88.75
Investment Income - Operating 0.30 0.40 1.60 2.20
Interest/Investment Income - Operating 0.30 0.40 1.60 2.20
Interest Expense (Income), Net-Operating, Total 0.30 0.40 1.60 2.20
Impairment-Assets Held for Use
Other Unusual Expense (Income) -- -- 100.38 6.17 --
Unusual Expense (Income) -- -- 100.38 6.17 --
Other, Net -5.80 -4.95 8.86 6.89 0.19
Other Operating Expenses, Total -5.80 -4.95 8.86 6.89 0.19
Total Operating Expense 763.73 1.04M 1.61M 1.39M 1.27M
Operating Income -69.28 55.01 209.88 241.11 247.65
Interest Expense - Non-Operating -5.34 -6.43 -17.17 -38.83 -40.37
Interest Expense, Net Non-Operating -5.34 -6.43 -17.17 -38.83 -40.37
Interest Income, Non-Operating 0.40 0.54 0.56 0.63 0.41
Investment Income, Non-Operating 0.38 -0.36 -0.42
Interest/Investment Income, Non-Operating 0.40 0.54 0.94 0.27 -0.01
Interest Income (Expense), Net-Non-Operating, Total -4.94 -5.88 -16.24 -38.56 -40.39
Other Non-Operating Income (Expense) 0.90 1.45 2.70 1.58 5.83
Other, Net 0.90 1.45 2.70 1.58 5.83
Net Income Before Taxes -73.33 50.57 196.34 204.13 213.09
Income Tax – Total -26.94 22.20 69.12 75.07 71.95
Income After Tax -46.39 28.37 127.23 129.06 141.15
Minority Interest -- -- -0.02 -0.02
Net Income Before Extraordinary Items -46.39 28.37 127.23 129.04 141.13
Discontinued Operations -0.00 0.23 51.78 292.22 307.48
Total Extraordinary Items -0.00 0.23 51.78 292.22 307.48
Net Income -46.39 28.60 179.00 421.26 448.61
Miscellaneous Earnings Adjustment -- -0.59 -2.10 -1.40 --
Total Adjustments to Net Income -- -0.59 -2.10 -1.40 --
Income Available to Common Excluding Extraordinary Items -46.39 27.78 125.13 127.64 141.13
Income Available to Common Stocks Including Extraordinary Items -46.39 28.01 176.91 419.86 448.61
Basic Weighted Average Shares 50.17 50.27 52.86 54.97 52.96
Basic EPS Excluding Extraordinary Items -0.92 0.55 2.37 2.32 2.66
Basic EPS Including Extraordinary Items -0.92 0.56 3.35 7.64 8.47
Dilution Adjustment 0.00 0.02 0.03
Diluted Net Income -46.39 28.01 176.92 419.89 448.61
Diluted Weighted Average Shares 50.17 50.34 53.15 55.33 55.38
Diluted EPS Excluding Extraordinary Items -0.92 0.55 2.35 2.31 2.55
Diluted EPS Including Extraordinary Items -0.92 0.56 3.33 7.59 8.10
DPS - Common Stock Primary Issue -- -- -- -- --
Gross Dividends - Common Stock -- -- -- -- --
Stock-Based Compensation, Supplemental 21.32 21.78 25.58 24.10 16.77
Interest Expense, Supplemental 5.34 6.43 17.17 38.83 40.37
Interest Capitalized, Supplemental
Depreciation, Supplemental 110.52 123.50 117.78 104.20 86.05
Total Special Items -- -- 100.38 6.17 --
Normalized Income Before Taxes -73.33 50.57 296.72 210.30 213.09
Effect of Special Items on Income Taxes -- -- 35.34 2.27 --
Income Taxes Excluding Impact of Special Items -26.94 22.20 104.45 77.34 71.95
Normalized Income After Taxes -46.39 28.37 192.27 132.96 141.15
Normalized Income Available to Common -46.39 27.78 190.18 131.54 141.13
Basic Normalized EPS -0.92 0.55 3.60 2.39 2.66
Diluted Normalized EPS -0.92 0.55 3.58 2.38 2.55
Amortization of Intangibles, Supplemental 8.20 7.80 7.00 5.10 2.70
Rental Expense, Supplemental 10.20 11.30 11.50 12.30 11.20
Equity in Affiliates, Supplemental 0.38 -0.36 -0.42
Minority Interest, Supplemental -- -- -0.02 -0.02
Audit-Related Fees, Supplemental 1.81 1.81 2.32
Audit-Related Fees 0.03 -- --
Tax Fees, Supplemental 0.69 0.05 0.39
All Other Fees Paid to Auditor, Supplemental -- -- 0.01
Gross Margin 24.15 28.57 33.73 31.67 30.58
Operating Margin -9.98 5.00 11.53 14.80 16.32
Pretax Margin -10.56 4.60 10.79 12.53 14.04
Effective Tax Rate 43.90 35.20 36.78 33.76
Net Profit Margin -6.68 2.53 6.88 7.83 9.30
Normalized EBIT -69.28 55.31 310.66 248.88 249.85
Normalized EBITDA 49.44 186.61 435.43 358.18 338.59
Current Tax - Domestic -0.53 7.22 56.32 65.25 47.42
Current Tax - Foreign 10.15 16.28 19.34 16.70 12.37
Current Tax - Local 1.05 1.87 5.43 2.88 3.26
Current Tax - Total 10.67 25.37 81.09 84.83 63.05
Deferred Tax - Domestic -34.82 -5.66 -8.62 -11.47 9.61
Deferred Tax - Foreign 0.02 2.98 -3.38 1.45 0.18
Deferred Tax - Local -2.81 -0.50 0.03 0.26 -0.89
Deferred Tax - Total -37.61 -3.17 -11.97 -9.76 8.90
Income Tax - Total -26.94 22.20 69.12 75.07 71.95
Defined Contribution Expense - Domestic 0.01 8.00 13.00 9.70 9.60
Total Pension Expense 0.01 8.00 13.00 9.70 9.60
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