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Jul 27, 2023

Oil States Announces Second Quarter 2023 Results

  • Net income of $0.6 million, or $0.01 per diluted share, reported for the quarter
  • Revenue of $183.5 million, while down 6% sequentially, increased 1% year-over-year
  • Adjusted EBITDA (a non-GAAP measure(1)) of $19.0 million decreased $2.4 million sequentially but increased $2.0 million year-over-year
  • Generated operating cash flow of $44.7 million in the quarter
  • Offshore/Manufactured Products segment's backlog increased sequentially for a fourth consecutive quarter totaling $338 million as of June 30, with a quarterly book-to-bill ratio of 1.1x
  • Invested $3.0 million in share repurchases

HOUSTON--(BUSINESS WIRE)--Jul. 27, 2023-- Oil States International, Inc. (NYSE: OIS):

 

Three Months Ended

 

% Change

(Unaudited, In Thousands, Except Per Share Amounts)

June 30,
2023

 

March 31,
2023

 

June 30,
2022

 

Sequential

 

Year-over-Year

Consolidated results:

 

 

 

 

 

 

 

 

 

Revenues

$

183,529

 

 

$

196,199

 

 

$

181,834

 

 

(6

)%

 

1%

Operating income (loss)

$

3,269

 

 

$

5,875

 

 

$

(1,090

)

 

(44

)%

 

nm

Net income (loss)

$

558

 

 

$

2,158

 

 

$

(5,144

)

 

(74

)%

 

nm

Diluted earning per share

$

0.01

 

 

$

0.03

 

 

$

(0.08

)

 

(67

)%

 

nm

Adjusted EBITDA(1)

$

19,016

 

 

$

21,407

 

 

$

16,988

 

 

(11

)%

 

12%

 

 

 

 

 

 

 

 

 

 

Revenues by segment:

 

 

 

 

 

 

 

 

 

Offshore/Manufactured Products

$

94,086

 

 

$

98,199

 

 

$

96,467

 

 

(4

)%

 

(2)%

Well Site Services

 

64,536

 

 

 

67,058

 

 

 

54,819

 

 

(4

)%

 

18%

Downhole Technologies

 

24,907

 

 

 

30,942

 

 

 

30,548

 

 

(20

)%

 

(18)%

 

 

 

 

 

 

 

 

 

 

Operating income (loss) by segment:

 

 

 

 

 

 

 

 

 

Offshore/Manufactured Products

$

11,253

 

 

$

11,090

 

 

$

9,441

 

 

1

%

 

19 %

Well Site Services

 

4,732

 

 

 

6,966

 

 

 

601

 

 

(32

)%

 

nm

Downhole Technologies

 

(2,536

)

 

 

(1,519

)

 

 

(1,485

)

 

(67

)%

 

(71)%

 

 

 

 

 

 

 

 

 

 

Adjusted Segment EBITDA (a non-GAAP measure(1)):

Offshore/Manufactured Products

$

15,981

 

 

$

15,923

 

 

$

14,735

 

 

%

 

8 %

Well Site Services

 

11,425

 

 

 

13,223

 

 

 

8,874

 

 

(14

)%

 

29 %

Downhole Technologies

 

1,639

 

 

 

2,756

 

 

 

2,854

 

 

(41

)%

 

(43)%

___________________

(1)

Adjusted EBITDA and Adjusted Segment EBITDA are non-GAAP measures, see "Reconciliations of GAAP to Non-GAAP Financial Information" tables below for reconciliations to their most comparable GAAP measures as well as further clarification and explanation.

Oil States International, Inc. reported net income of $0.6 million, or $0.01 per share, for the second quarter of 2023 on revenues of $183.5 million and Adjusted EBITDA of $19.0 million. These results compare to revenues of $196.2 million, net income of $2.2 million, or $0.03 per share, and Adjusted EBITDA of $21.4 million reported in the first quarter of 2023.

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

"Our reported second quarter results reflect the dueling trends of activity declines in U.S. shale basins with offsetting growth in offshore and international regions. Despite sequentially weaker second quarter revenues and Adjusted EBITDA, we confirm our full-year guidance of $92 to $100 million of Adjusted EBITDA based upon expected contributions from the ongoing recovery in offshore activity. Our forecast is supported by the backlog growth that we have witnessed at our Offshore/Manufactured Products segment, which increased to $338 million in the second quarter of 2023 – a quarter-end level last observed at the end of 2015.

"We generated very strong cash flow from operations of $45 million in the second quarter, invested $11 million in capital equipment, repurchased $3 million of our common stock and repaid all amounts outstanding under the revolving credit facility. With cash on-hand of $42 million and no significant debt maturities until 2026, we are in a strong position to create stockholder value.

"We remain encouraged by the continued recovery in offshore activity coupled with future benefits to be gained from new product introductions."

Business Segment Results

(See Segment Data and Adjusted Segment EBITDA tables below)

Offshore/Manufactured Products

Offshore/Manufactured Products reported revenues of $94.1 million, operating income of $11.3 million and Adjusted Segment EBITDA of $16.0 million in the second quarter of 2023, compared to revenues of $98.2 million, operating income of $11.1 million and Adjusted Segment EBITDA of $15.9 million reported in the first quarter of 2023. Adjusted Segment EBITDA margin in the second quarter of 2023 was 17%, compared to 16% in the prior quarter.

Backlog totaled $338 million as of June 30, 2023, an increase of $12 million, or 4%, from March 31, 2023 and $97 million, or 40%, from June 30, 2022. The current quarter-end backlog is at its highest level since December 31, 2015. Second quarter 2023 bookings totaled $106 million, yielding a quarterly book-to-bill ratio of 1.1x (1.2x year-to-date).

Well Site Services

Well Site Services reported revenues of $64.5 million, operating income of $4.7 million and Adjusted Segment EBITDA of $11.4 million in the second quarter of 2023, compared to revenues of $67.1 million, operating income of $7.0 million and Adjusted Segment EBITDA of $13.2 million reported in the first quarter of 2023. Adjusted Segment EBITDA margin was 18% in the second quarter of 2023, compared to 20% in the first quarter of 2023.

Downhole Technologies

Downhole Technologies reported revenues of $24.9 million, an operating loss of $2.5 million and Adjusted Segment EBITDA of $1.6 million in the second quarter of 2023, compared to revenues of $30.9 million, an operating loss of $1.5 million and Adjusted Segment EBITDA of $2.8 million reported in the first quarter of 2023. The segment's second quarter operating results included a $1.0 million non-cash provision for excess and obsolete inventory. Adjusted Segment EBITDA margin in the second quarter of 2023 was 7%, compared to 9% in the first quarter of 2023.

Corporate

Corporate operating expenses in the second quarter of 2023 totaled $10.2 million.

Interest Expense, Net

Net interest expense totaled $2.1 million in the second quarter of 2023, which included $0.4 million of non-cash amortization of deferred debt issuance costs.

Income Taxes

The Company recognized tax expense of $0.9 million on pre-tax income of $1.4 million during the second quarter of 2023. In the first quarter of 2023, the Company recognized a tax expense of $1.6 million on pre-tax income of $3.8 million.

Cash Flows

During the second quarter of 2023, the Company generated cash flows from operations of $44.7 million and invested $10.8 million in new equipment to support future growth.

The Company also repurchased 439 thousand shares of its common stock for $3.0 million in the second quarter of 2023. A total of $22.0 million remains available under the share repurchase authorization, which extends through February 2025.

Financial Condition

No borrowings were outstanding under the Company's asset-based revolving credit facility (the "ABL Facility") at June 30, 2023. Cash on-hand increased from $15.8 million at March 31, 2023 to $42.4 million at June 30, 2023. Liquidity (cash plus borrowing availability) totaled $133.4 million at June 30, 2023, with amounts available to be drawn under the ABL Facility totaling $90.9 million.

Conference Call Information

The call is scheduled for July 27, 2023 at 10 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 (888) 210-3346 in the United States or by dialing +1 (646) 960-0253 internationally and using the passcode 7534957. A replay of the conference call will be available approximately two 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.

Cautionary Language Concerning 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 and demand for oil and natural gas, fluctuations in the current and future prices of oil and natural gas, the level of exploration, drilling and completion activity, general global economic conditions, the cyclical nature of the oil and natural gas industry, geopolitical tensions, the financial health of our customers, the actions of the Organization of Petroleum Exporting Countries ("OPEC") and other producing nations with respect to crude oil production levels and pricing, the impact of environmental matters, including executive actions and regulatory efforts to adopt environmental or climate change regulations that may result in increased operating costs or reduced oil and natural gas production or demand globally, our ability to access and the cost of capital in the bank and capital markets, our ability to develop new competitive technologies and products, 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, 2022 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)

(Unaudited)

 

Three Months Ended

 

Six Months Ended

 

June 30,
2023

 

March 31, 2023

 

June 30,
2022

 

June 30,
2023

 

June 30,
2022

Revenues:

 

 

 

 

 

 

 

 

 

Products

$

92,630

 

 

$

99,840

 

 

$

99,033

 

 

$

192,470

 

 

$

184,794

 

Services

 

90,899

 

 

 

96,359

 

 

 

82,801

 

 

 

187,258

 

 

 

161,084

 

 

 

183,529

 

 

 

196,199

 

 

 

181,834

 

 

 

379,728

 

 

 

345,878

 

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

Product costs

 

72,659

 

 

 

78,677

 

 

 

79,388

 

 

 

151,336

 

 

 

144,189

 

Service costs

 

69,371

 

 

 

72,058

 

 

 

62,768

 

 

 

141,429

 

 

 

124,571

 

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

 

142,030

 

 

 

150,735

 

 

 

142,156

 

 

 

292,765

 

 

 

268,760

 

Selling, general and administrative expense

 

23,528

 

 

 

24,016

 

 

 

23,757

 

 

 

47,544

 

 

 

47,590

 

Depreciation and amortization expense

 

15,537

 

 

 

15,256

 

 

 

17,239

 

 

 

30,793

 

 

 

35,056

 

Other operating (income) expense, net

 

(835

)

 

 

317

 

 

 

(228

)

 

 

(518

)

 

 

(102

)

 

 

180,260

 

 

 

190,324

 

 

 

182,924

 

 

 

370,584

 

 

 

351,304

 

Operating income (loss)

 

3,269

 

 

 

5,875

 

 

 

(1,090

)

 

 

9,144

 

 

 

(5,426

)

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(2,059

)

 

 

(2,391

)

 

 

(2,638

)

 

 

(4,450

)

 

 

(5,310

)

Other income, net

 

210

 

 

 

276

 

 

 

376

 

 

 

486

 

 

 

1,401

 

Income (loss) before income taxes

 

1,420

 

 

 

3,760

 

 

 

(3,352

)

 

 

5,180

 

 

 

(9,335

)

Income tax provision

 

(862

)

 

 

(1,602

)

 

 

(1,792

)

 

 

(2,464

)

 

 

(5,233

)

Net income (loss)

$

558

 

 

$

2,158

 

 

$

(5,144

)

 

$

2,716

 

 

$

(14,568

)

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

Basic

$

0.01

 

 

$

0.03

 

 

$

(0.08

)

 

$

0.04

 

 

$

(0.24

)

Diluted

 

0.01

 

 

 

0.03

 

 

 

(0.08

)

 

 

0.04

 

 

 

(0.24

)

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

62,803

 

 

 

62,825

 

 

 

60,704

 

 

 

62,814

 

 

 

60,601

 

Diluted

 

63,174

 

 

 

63,072

 

 

 

60,704

 

 

 

63,161

 

 

 

60,601

 

 

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands)

 

June 30, 2023

 

December 31, 2022

 

(Unaudited)

 

 

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

42,420

 

 

$

42,018

 

Accounts receivable, net

 

180,917

 

 

 

218,769

 

Inventories, net

 

205,132

 

 

 

182,658

 

Prepaid expenses and other current assets

 

28,217

 

 

 

19,317

 

Total current assets

 

456,686

 

 

 

462,762

 

 

 

 

 

Property, plant, and equipment, net

 

296,015

 

 

 

303,835

 

Operating lease assets, net

 

23,266

 

 

 

23,028

 

Goodwill, net

 

79,778

 

 

 

79,282

 

Other intangible assets, net

 

161,476

 

 

 

169,798

 

Other noncurrent assets

 

27,799

 

 

 

25,687

 

Total assets

$

1,045,020

 

 

$

1,064,392

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

Current liabilities:

 

 

 

Current portion of long-term debt

$

513

 

 

$

17,831

 

Accounts payable

 

56,726

 

 

 

73,251

 

Accrued liabilities

 

42,987

 

 

 

49,057

 

Current operating lease liabilities

 

6,750

 

 

 

6,142

 

Income taxes payable

 

2,740

 

 

 

2,605

 

Deferred revenue

 

53,027

 

 

 

44,790

 

Total current liabilities

 

162,743

 

 

 

193,676

 

 

 

 

 

Long-term debt

 

135,273

 

 

 

135,066

 

Long-term operating lease liabilities

 

20,027

 

 

 

20,658

 

Deferred income taxes

 

8,601

 

 

 

6,652

 

Other noncurrent liabilities

 

20,271

 

 

 

18,782

 

Total liabilities

 

346,915

 

 

 

374,834

 

 

 

 

 

Stockholders' equity:

 

 

 

Common stock

 

772

 

 

 

766

 

Additional paid-in capital

 

1,125,647

 

 

 

1,122,292

 

Retained earnings

 

274,743

 

 

 

272,027

 

Accumulated other comprehensive loss

 

(71,522

)

 

 

(78,941

)

Treasury stock

 

(631,535

)

 

 

(626,586

)

Total stockholders' equity

 

698,105

 

 

 

689,558

 

Total liabilities and stockholders' equity

$

1,045,020

 

 

$

1,064,392

 

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

(Unaudited)

 

Six Months Ended June 30,

 

2023

 

2022

Cash flows from operating activities:

 

 

 

Net income (loss)

$

2,716

 

 

$

(14,568

)

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

 

 

 

Depreciation and amortization expense

 

30,793

 

 

 

35,056

 

Stock-based compensation expense

 

3,361

 

 

 

3,504

 

Amortization of deferred financing costs

 

892

 

 

 

944

 

Deferred income tax provision

 

997

 

 

 

2,584

 

Gains on disposals of assets

 

(561

)

 

 

(1,185

)

Settlement of disputes with seller of GEODynamics, Inc.

 

 

 

 

620

 

Other, net

 

(267

)

 

 

360

 

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

 

 

 

Accounts receivable

 

39,042

 

 

 

(20,469

)

Inventories

 

(21,197

)

 

 

(14,664

)

Accounts payable and accrued liabilities

 

(25,924

)

 

 

(5,994

)

Deferred revenue

 

8,237

 

 

 

4,647

 

Other operating assets and liabilities, net

 

653

 

 

 

(870

)

Net cash flows provided by (used in) operating activities

 

38,742

 

 

 

(10,035

)

 

 

 

 

Cash flows from investing activities:

 

 

 

Capital expenditures

 

(17,338

)

 

 

(6,453

)

Proceeds from disposition of property and equipment

 

690

 

 

 

1,652

 

Acquisition of business, net of cash acquired

 

 

 

 

(8,125

)

Other, net

 

(66

)

 

 

(85

)

Net cash flows used in investing activities

 

(16,714

)

 

 

(13,011

)

 

 

 

 

Cash flows from financing activities:

 

 

 

Revolving credit facility borrowings

 

35,592

 

 

 

9,725

 

Revolving credit facility repayments

 

(35,592

)

 

 

(9,725

)

Repayment of 1.50% convertible senior notes

 

(17,315

)

 

 

(6,272

)

Other debt and finance lease repayments

 

(226

)

 

 

(359

)

Payment of financing costs

 

(95

)

 

 

(74

)

Purchases of treasury stock

 

(3,001

)

 

 

 

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

due to vesting of stock awards

 

(1,948

)

 

 

(1,002

)

Net cash flows used in financing activities

 

(22,585

)

 

 

(7,707

)

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

959

 

 

 

147

 

Net change in cash and cash equivalents

 

402

 

 

 

(30,606

)

Cash and cash equivalents, beginning of period

 

42,018

 

 

 

52,852

 

Cash and cash equivalents, end of period

$

42,420

 

 

$

22,246

 

 

 

 

 

Cash paid (received) for:

 

 

 

Interest

$

4,060

 

 

$

4,105

 

Income taxes, net

 

(1,475

)

 

 

291

 

 

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

SEGMENT DATA

(In Thousands)

(Unaudited)

 

Three Months Ended

 

Six Months Ended

 

June 30,

2023

 

March 31,
2023

 

June 30,

2022

 

June 30,

2023

 

June 30,

2022

Revenues(1):

 

 

 

 

 

 

 

 

 

Offshore/Manufactured Products

 

 

 

 

 

 

 

 

 

Project-driven:

 

 

 

 

 

 

 

 

 

Products

$

32,210

 

 

$

39,132

 

 

$

41,098

 

 

$

71,342

 

 

$

74,942

 

Services

 

24,846

 

 

 

24,630

 

 

 

23,995

 

 

 

49,476

 

 

 

48,293

 

 

 

57,056

 

 

 

63,762

 

 

 

65,093

 

 

 

120,818

 

 

 

123,235

 

Military and other products

 

7,965

 

 

 

6,997

 

 

 

7,763

 

 

 

14,962

 

 

 

13,109

 

Short-cycle products

 

29,065

 

 

 

27,440

 

 

 

23,611

 

 

 

56,505

 

 

 

44,235

 

Total Offshore/Manufactured Products

 

94,086

 

 

 

98,199

 

 

 

96,467

 

 

 

192,285

 

 

 

180,579

 

Well Site Services

 

64,536

 

 

 

67,058

 

 

 

54,819

 

 

 

131,594

 

 

 

102,991

 

Downhole Technologies

 

24,907

 

 

 

30,942

 

 

 

30,548

 

 

 

55,849

 

 

 

62,308

 

Total revenues

$

183,529

 

 

$

196,199

 

 

$

181,834

 

 

$

379,728

 

 

$

345,878

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss):

 

 

 

 

 

 

 

 

 

Offshore/Manufactured Products

$

11,253

 

 

$

11,090

 

 

$

9,441

 

 

$

22,343

 

 

$

19,637

 

Well Site Services

 

4,732

 

 

 

6,966

 

 

 

601

 

 

 

11,698

 

 

 

(2,794

)

Downhole Technologies

 

(2,536

)

 

 

(1,519

)

 

 

(1,485

)

 

 

(4,055

)

 

 

(2,990

)

Corporate

 

(10,180

)

 

 

(10,662

)

 

 

(9,647

)

 

 

(20,842

)

 

 

(19,279

)

Total operating income (loss)

$

3,269

 

 

$

5,875

 

 

$

(1,090

)

 

$

9,144

 

 

$

(5,426

)

________________

(1)

The Company revised its supplemental disclosure of disaggregated revenue information in the second quarter of 2023. Prior-period disclosures of disaggregated revenue information were conformed with the current-period presentation.

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL INFORMATION

ADJUSTED EBITDA (A)

(In Thousands)

(Unaudited)

 

Three Months Ended

 

Six Months Ended

 

June 30,
2023

 

March 31,
2023

 

June 30,
2022

 

June 30,
2023

 

June 30,
2022

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

558

 

$

2,158

 

$

(5,144

)

 

$

2,716

 

$

(14,568

)

Interest expense, net

 

2,059

 

 

2,391

 

 

2,638

 

 

 

4,450

 

 

5,310

 

Income tax provision

 

862

 

 

1,602

 

 

1,792

 

 

 

2,464

 

 

5,233

 

Depreciation and amortization expense

 

15,537

 

 

15,256

 

 

17,239

 

 

 

30,793

 

 

35,056

 

Settlement of disputes with seller of GEODynamics, Inc.

 

 

 

 

 

620

 

 

 

 

 

620

 

Gains on extinguishment of 1.50% convertible senior notes

 

 

 

 

 

(157

)

 

 

 

 

(157

)

Adjusted EBITDA

$

19,016

 

$

21,407

 

$

16,988

 

 

$

40,423

 

$

31,494

 

________________

(A)

The term Adjusted EBITDA consists of net income (loss) plus net interest expense, taxes, depreciation and amortization expense, and loss on settlement of disputes with the seller of GEODynamics, Inc., less gains on extinguishment of 1.50% convertible senior notes (the "2023 Notes"). Adjusted 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 EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included Adjusted EBITDA as a supplemental disclosure because its management believes that Adjusted 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 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 EBITDA to net income (loss), which is the most directly comparable measure of financial performance calculated under GAAP.

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL INFORMATION

ADJUSTED SEGMENT EBITDA (B)

(In Thousands)

(Unaudited)

 

Three Months Ended

 

Six Months Ended

 

June 30,
2023

 

March 31,
2023

 

June 30,
2022

 

June 30,
2023

 

June 30,
2022

Offshore/Manufactured Products:

 

 

 

 

 

 

 

 

 

Operating income

$

11,253

 

 

$

11,090

 

 

$

9,441

 

 

$

22,343

 

 

$

19,637

 

Other income, net

 

81

 

 

 

165

 

 

 

45

 

 

 

246

 

 

 

86

 

Depreciation and amortization expense

 

4,647

 

 

 

4,668

 

 

 

5,249

 

 

 

9,315

 

 

 

10,579

 

Adjusted Segment EBITDA

$

15,981

 

 

$

15,923

 

 

$

14,735

 

 

$

31,904

 

 

$

30,302

 

 

 

 

 

 

 

 

 

 

 

Well Site Services:

 

 

 

 

 

 

 

 

 

Operating income (loss)

$

4,732

 

 

$

6,966

 

 

$

601

 

 

$

11,698

 

 

$

(2,794

)

Other income, net

 

129

 

 

 

111

 

 

 

878

 

 

 

240

 

 

 

1,864

 

Depreciation and amortization expense

 

6,564

 

 

 

6,146

 

 

 

7,395

 

 

 

12,710

 

 

 

15,327

 

Adjusted Segment EBITDA

$

11,425

 

 

$

13,223

 

 

$

8,874

 

 

$

24,648

 

 

$

14,397

 

 

 

 

 

 

 

 

 

 

 

Downhole Technologies:

 

 

 

 

 

 

 

 

 

Operating loss

$

(2,536

)

 

$

(1,519

)

 

$

(1,485

)

 

$

(4,055

)

 

$

(2,990

)

Other expense, net

 

 

 

 

 

 

 

(84

)

 

 

 

 

 

(86

)

Depreciation and amortization expense

 

4,175

 

 

 

4,275

 

 

 

4,423

 

 

 

8,450

 

 

 

8,807

 

Adjusted Segment EBITDA

$

1,639

 

 

$

2,756

 

 

$

2,854

 

 

$

4,395

 

 

$

5,731

 

 

 

 

 

 

 

 

 

 

 

Corporate:

 

 

 

 

 

 

 

 

 

Operating loss

$

(10,180

)

 

$

(10,662

)

 

$

(9,647

)

 

$

(20,842

)

 

$

(19,279

)

Other expense, net

 

 

 

 

 

 

 

(463

)

 

 

 

 

 

(463

)

Depreciation and amortization expense

 

151

 

 

 

167

 

 

 

172

 

 

 

318

 

 

 

343

 

Settlement of disputes with seller of GEODynamics, Inc.

 

 

 

 

 

 

 

620

 

 

 

 

 

 

620

 

Gains on extinguishment of 1.50% convertible senior notes

 

 

 

 

 

 

 

(157

)

 

 

 

 

 

(157

)

Adjusted Segment EBITDA

$

(10,029

)

 

$

(10,495

)

 

$

(9,475

)

 

$

(20,524

)

 

$

(18,936

)

________________

(B)

The term Adjusted Segment EBITDA consists of operating income (loss) plus other income (expense), depreciation and amortization expense, and loss on settlement of disputes with the seller of GEODynamics, Inc., less gains on extinguishment of the 2023 Notes. Adjusted Segment EBITDA is not a measure 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 Segment EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included Adjusted Segment EBITDA as supplemental disclosure because its management believes that Adjusted Segment 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 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 table above sets forth reconciliations of 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.

© 2024 Oil States International, Inc. All rights reserved.