NYSE: OIS 28.70 0.00

Investors

Shareholder Tools

Search

Oil States is focused
on sustained shareholder
value creation.

Home | Investor Relations | Reconciliation of Non-GAAP Financial Measures

Reconciliation of Non-GAAP Financial Measures

The terms EBITDA and Adjusted EBITDA consist of net income from continuing operations plus net interest expense, taxes, depreciation and amortization, and certain other non-recurring items. EBITDA and Adjusted EBITDA is not a measure of financial performance under generally accepted accounting principles and should not be considered in isolation from or as a substitute for net income or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. Additionally, EBITDA and Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included EBITDA and Adjusted EBITDA as a supplemental disclosure because its management believes that EBITDA and Adjusted EBITDA provide useful information regarding its ability to service debt and to fund capital expenditures and provide 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 and Adjusted 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 table above sets forth a reconciliation of EBITDA and Adjusted EBITDA to net income, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles.

Oil States International, Inc.
Non-GAAP Reconciliation
(USD in millions)
For The Year Ending December 31,
2011 2012 2013 2014 2015
Net income attributable to Oil States International, Inc. - continuing operations $ 104 $ 141 $ 129 $ 127 $ 29
Depreciation and amortization expense 76 89 109 125 131
Interest expense, net 37 40 38 17 6
Loss on extinguishment of debt (1) - - 6 100 -
Income tax provision 57 72 75 69 22
EBITDA, as defined (2) $ 274 $ 342 $ 358 $ 438 $ 188
Severance and downsizing related charges - - - - 6
Insurance proceeds - (3) - - -
Transaction costs - - - 11 -
Adjusted EBITDA $ 274 $ 339 $ 358 $ 449 $ 194

(1) During 2014, we recognized losses on the extinguishment of debt totaling $100.4 million primarily due to the repurchase of our remaining 6 1/2% Notes and 5 1/8% Notes, resulting in a loss of $96.7 million consisting of the premium paid over book value for such notes and the write-off of unamortized deferred financing costs associated with the Notes. We paid a premium to repurchase the 6 1/2% Notes and 5 1/8% Notes due to their fair market value exceeding their book value at the date tendered. In addition, as a result of the refinancing of our bank credit facility in the second quarter of 2014, we recognized a loss of $3.7 million (net of $1.8 million allocated to discontinued operations for the Canadian portion of the revolving credit facility) from the write-off of unamortized deferred financing costs on our revolving credit facility. During 2013, we recognized a loss on the extinguishment of debt totaling $6.2 million from the repurchase of a portion of our 5 1/8% Notes in the fourth quarter of 2013, resulting in a loss of $4.1 million, including the write-off of $0.4 million of unamortized deferred financing costs. Additionally, we wrote off $2.1 million of unamortized deferred financing costs associated with the full repayment of our U.S. term loan.

© 2013 Oil States International, Inc. All rights reserved. Website and Design by Savage Brands.