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Oct 29, 2020

Oil States Announces Third Quarter 2020 Results of Operations

HOUSTON, Oct. 29, 2020 (GLOBE NEWSWIRE) -- Oil States International, Inc. (NYSE: OIS) reported a net loss of $20.0 million, or $0.33 per share, for the third quarter of 2020, on revenues of $134.8 million. Consolidated EBITDA (Note A) was $0.1 million. The reported third quarter 2020 net loss included the following more significant charges and gains:

  • Non-cash write-down of inventory totaling $5.9 million ($4.7 million after-tax, or $0.08 per share)
  • Non-cash gains on extinguishment of convertible senior notes of $5.9 million ($4.7 million after-tax, or $0.08 per share)

Third quarter 2020 highlights and corporate actions included:

  • Generated $87.0 million in cash flow from operations
  • Reduced net debt (defined as total debt less cash) by $91.9 million, including the repayment of $52.0 million of revolver borrowings and the purchase of $17.2 million principal amount of the convertible senior notes at an average discount to par value of 45%

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

"Our third quarter results were generally in line with our internal forecasts and the limited guidance that we were able to provide but the mix was different. Our Offshore/Manufactured Products segment results were below our previous guidance due to delays in customer activity and timing of orders. Our third quarter bookings improved sequentially to $70 million, including two notable project awards exceeding $10 million each, yielding a book-to-bill ratio for the third quarter of 0.9x. Backlog totaled $227 million as of September 30, 2020, a sequential decline of 3%. Reflecting some improvement in U.S. land activity in the latter part of the quarter, revenues in our Well Site Services and Downhole Technologies segments increased 3% and 25% sequentially, despite numerous storm disruptions in the U.S. Gulf of Mexico, which hampered our offshore Completion Services activity.

"We generated $87 million in cash flow from operations during the third quarter and reduced our net debt by $92 million, demonstrating our continued emphasis on reducing costs and implementing strict capital discipline in this challenging operating environment while continuing to support our customers with strong technology offerings and safe operations. Since December 31, 2019, we have generated $131 million in cash flow from operations and have reduced our net debt by $130 million."

BUSINESS SEGMENT RESULTS

(See Segment Data tables)

Offshore/Manufactured Products

Offshore/Manufactured Products reported revenues of $78.7 million and Segment EBITDA (Note B) of $9.4 million in the third quarter of 2020, compared to revenues of $94.9 million and Segment EBITDA of $15.0 million reported in the second quarter of 2020. Revenues decreased 17% sequentially, due primarily to a reduction in the segment's connector product sales. Segment EBITDA margin in the third quarter of 2020 was 12% compared to 16% in the second quarter of 2020.

Backlog totaled $227 million at September 30, 2020, a decrease of 3% sequentially and 23% year-over-year. During the third quarter, the segment received two notable project awards exceeding $10 million each. Third quarter 2020 bookings of $70 million were up sequentially, yielding a book-to-bill ratio of 0.9x in the period.

Well Site Services

Well Site Services reported revenues of $37.4 million and a Segment EBITDA loss of $0.3 million in the third quarter of 2020, compared to revenues of $36.3 million and a Segment EBITDA loss of $5.4 million reported in the second quarter of 2020. Included in the third quarter 2020 results for the Completion Services business were $1.2 million of expenses associated with prior-year insurance claims and a bad debt provision on a receivable from a customer claiming bankruptcy protection. During the second quarter of 2020, the Completion Services business recorded a non-cash fixed asset impairment charge of $3.0 million, severance and downsizing charges of $3.5 million and a $0.7 million bad debt provision on a receivable from a customer claiming bankruptcy protection.

Downhole Technologies

Downhole Technologies reported revenues of $18.7 million and a Segment EBITDA loss of $1.0 million in the third quarter of 2020, compared to revenues of $15.0 million and a Segment EBITDA loss of $5.5 million reported in the second quarter of 2020. During the third quarter of 2020, the Downhole Technologies segment recorded a non-cash inventory impairment charge of $5.9 million. In the second quarter of 2020, the segment recorded a $1.5 million bad debt provision on a receivable from a customer claiming bankruptcy protection and $1.3 million of expenses associated with workforce reductions and facility closures.

Interest Expense, Net

The Company reported net interest expense of $3.5 million in the third quarter of 2020, including $1.9 million of non-cash amortization of debt discount and deferred financing costs.

Other Income, Net

During the third quarter of 2020, the Company recognized non-cash gains of $5.9 million in connection with the purchases of $17.2 million principal amount of its 1.50% convertible senior notes (due February 2023) at a significant discount to the carrying value of the recorded liability. In the second quarter of 2020, the Company recognized non-cash gains of $4.8 million in connection with the purchases of $12.0 million principal amount of the convertible senior notes.

Income Taxes

The Company recognized an effective tax rate benefit of 27.8% in the third quarter of 2020, which compared to an effective tax rate benefit of 21.9% in the second quarter of 2020. The Company received $41.3 million in the third quarter of 2020 related to its 2018 and 2019 net operating loss carryback claims afforded under the CARES Act.

Financial Condition

As of September 30, 2020, $19.0 million was outstanding under the Company's revolving credit facility, compared to $71.0 million outstanding as of June 30, 2020. Cash on-hand totaled $79.7 million as of September 30, 2020, compared to $53.8 million as of June 30, 2020. The total amount available to be drawn under the revolving credit facility was $83.8 million as of October 1, 2020.

During the third quarter of 2020, the Company purchased $17.2 million principal amount of its outstanding 1.50% convertible senior notes for $9.5 million in cash. Since September 2019, the Company has purchased $42.6 million principal amount of its convertible senior notes for $26.8 million in cash.

The Company's total debt represented 20% of combined total debt and stockholders' equity as of September 30, 2020, compared to 25% as of June 30, 2020.

Conference Call Information

The call is scheduled for October 30, 2020 at 10:00 a.m. Central 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) 771-4371 in the United States or by dialing +1 (847) 585-4405 internationally and using the passcode 49966262. 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 products and services company predominantly serving the drilling, completion, subsea, production and infrastructure sectors of the oil and gas industry. The Company’s manufactured products include highly engineered capital equipment as well as products consumed in the drilling, well construction and production of oil and natural gas. 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, the impact of the COVID-19 pandemic on our Company and our customers and the other risks associated with the general nature of the energy service industry discussed in the "Business" and "Risk Factors" sections of the Company's Annual Report on Form 10-K for the year ended December 31, 2019, Periodic Reports on Form 8-K and Quarterly Reports on Form 10-Q. 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

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

  Three Months Ended   Nine Months Ended
  September 30,
2020
  June 30,
2020
  September 30,
2019
  September 30,
2020
  September 30,
2019
Revenues:                  
Products $ 72,598     $ 82,643     $ 122,067     $ 258,221     $ 363,360  
Services 62,161     63,602     141,630     242,477     415,633  
  134,759     146,245     263,697     500,698     778,993  
                   
Costs and expenses:                  
Product costs 66,789     68,088     90,796     224,623     275,353  
Service costs 53,822     59,995     110,294     221,673     333,727  
Cost of revenues (exclusive of depreciation and amortization expense presented below)(1) 120,611     128,083     201,090     446,296     609,080  
Selling, general and administrative expense 21,389     23,992     31,935     71,505     93,527  
Depreciation and amortization expense 24,251     24,646     31,366     75,306     94,800  
Impairments of goodwill             406,056      
Impairments of fixed assets     2,992     33,697     8,190     33,697  
Other operating expense (income), net (652 )   (134 )   519     (679 )   34  
  165,599     179,579     298,607     1,006,674     831,138  
Operating loss (30,840 )   (33,334 )   (34,910 )   (505,976 )   (52,145 )
                   
Interest expense, net (3,549 )   (4,179 )   (4,352 )   (11,232 )   (13,721 )
Other income, net(2) 6,744     5,994     1,190     13,512     2,866  
Loss before income taxes (27,645 )   (31,519 )   (38,072 )   (503,696 )   (63,000 )
Income tax benefit 7,676     6,893     6,204     54,060     6,744  
Net loss $ (19,969 )   $ (24,626 )   $ (31,868 )   $ (449,636 )   $ (56,256 )
                   
Net loss per share:                  
Basic $ (0.33 )   $ (0.41 )   $ (0.54 )   $ (7.52 )   $ (0.95 )
Diluted $ (0.33 )   $ (0.41 )   $ (0.54 )   $ (7.52 )   $ (0.95 )
                   
Weighted average number of common shares outstanding:                
Basic 59,871     59,839     59,423     59,788     59,362  
Diluted 59,871     59,839     59,423     59,788     59,362  


       
(1)   Cost of revenues (exclusive of depreciation and amortization expense) included a non-cash inventory impairment charge of $5.9 million (in product costs) recognized in the third quarter of 2020. For the first nine months of 2020, cost of revenues (exclusive of depreciation and amortization expense) included non-cash inventory impairment charges of $31.2 million ($17.9 million in product costs and $13.3 million in service costs).
     
(2)   Other income, net included non-cash gains of $5.9 million recognized in connection with the purchases of $17.2 million principal amount of the 1.50% convertible senior notes in the third quarter of 2020. For the nine months ended September 30, 2020, other income, net included non-cash gains totaling $10.7 million recognized in connection with the purchases of $34.9 million principal amount of the 1.50% convertible senior notes.


OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(In Thousands)

  September 30, 2020   December 31, 2019
  (Unaudited)    
ASSETS      
Current assets:      
Cash and cash equivalents $ 79,701       $ 8,493    
Accounts receivable, net 158,184       233,487    
Inventories, net 180,497       221,342    
Prepaid expenses and other current assets 14,921       20,107    
Total current assets 433,303       483,429    
       
Property, plant, and equipment, net 390,962       459,724    
Operating lease assets, net 36,902       43,616    
Goodwill, net 76,051       482,306    
Other intangible assets, net 211,804       230,091    
Other noncurrent assets 31,764       28,701    
Total assets $ 1,180,786       $ 1,727,867    
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
Current liabilities:      
Current portion of long-term debt $ 25,620       $ 25,617    
Accounts payable 36,666       78,368    
Accrued liabilities 49,755       48,840    
Current operating lease liabilities 7,942       8,311    
Income taxes payable 3,501       4,174    
Deferred revenue 48,851       17,761    
Total current liabilities 172,335       183,071    
       
Long-term debt 163,526       222,552    
Long-term operating lease liabilities 30,459       35,777    
Deferred income taxes 26,643       38,079    
Other noncurrent liabilities 23,485       24,421    
Total liabilities 416,448       503,900    
       
Stockholders' equity:      
Common stock 733       726    
Additional paid-in capital 1,119,860       1,114,521    
Retained earnings 348,074       797,710    
Accumulated other comprehensive loss (80,410 )     (67,746 )  
Treasury stock (623,919 )     (621,244 )  
Total stockholders' equity 764,338       1,223,967    
Total liabilities and stockholders' equity $ 1,180,786       $ 1,727,867    


OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)

  Nine Months Ended September 30,
  2020   2019
Cash flows from operating activities:      
Net loss $ (449,636 )     $ (56,256 )  
Adjustments to reconcile net loss to net cash provided by operating activities:      
Depreciation and amortization expense 75,306       94,800    
Impairments of goodwill 406,056          
Impairments of inventories 31,151          
Impairments of fixed assets 8,190       33,697    
Stock-based compensation expense 5,346       12,822    
Amortization of debt discount and deferred financing costs 5,937       5,903    
Deferred income tax benefit (16,915 )     (11,935 )  
Gains on extinguishment of 1.50% convertible senior notes (10,721 )        
Gains on disposals of assets (2,088 )     (2,310 )  
Other, net 3,732       1,216    
Changes in operating assets and liabilities:      
Accounts receivable 67,371       24,993    
Inventories 9,174       (6,867 )  
Accounts payable and accrued liabilities (39,594 )     3,143    
Income taxes payable 248       1,948    
Deferred revenue 31,114       11,793    
Other operating assets and liabilities, net 6,471       2,947    
Net cash flows provided by operating activities 131,142       115,894    
       
Cash flows from investing activities:      
Capital expenditures (11,277 )     (45,832 )  
Proceeds from disposition of property, plant and equipment 8,984       3,619    
Other, net (444 )     (1,534 )  
Net cash flows used in investing activities (2,737 )     (43,747 )  
       
Cash flows from financing activities:      
Revolving credit facility borrowings 72,173       175,306    
Revolving credit facility repayments (105,104 )     (246,450 )  
Purchases of 1.50% convertible senior notes (20,078 )     (858 )  
Other debt and finance lease repayments, net (337 )     (434 )  
Payment of financing costs (962 )     (18 )  
Shares added to treasury stock as a result of net share settlements
due to vesting of stock awards
(2,675 )     (3,698 )  
Purchases of treasury stock       (757 )  
Net cash flows used in financing activities (56,983 )     (76,909 )  
       
Effect of exchange rate changes on cash and cash equivalents (214 )     101    
Net change in cash and cash equivalents 71,208       (4,661 )  
Cash and cash equivalents, beginning of period 8,493       19,316    
Cash and cash equivalents, end of period $ 79,701       $ 14,655    
       
Cash paid (received) for:      
Interest $ 5,716       $ 8,378    
Income taxes, net (37,393 )     (2,522 )  


OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

SEGMENT DATA
(In Thousands)
(unaudited)

  Three Months Ended   Nine Months Ended
  September 30,

2020(2)
  June 30,

2020(3)
  September 30,

2019(4)
  September 30,

2020(5)
  September 30,

2019(6)
Revenues:                  
Well Site Services:                  
Completion Services $ 34,893     $ 36,175     $ 103,966     $ 153,994     $ 307,928  
Drilling Services 2,479     169     12,034     7,179     32,430  
Total Well Site Services 37,372     36,344     116,000     161,173     340,358  
Downhole Technologies 18,713     14,965     42,882     74,743     143,912  
Offshore/Manufactured Products(1):                  
Project-driven products 41,004     51,365     39,474     129,157     105,236  
Short-cycle products 7,864     11,452     34,698     41,334     101,722  
Other products and services 29,806     32,119     30,643     94,291     87,765  
Total Offshore/Manufactured Products 78,674     94,936     104,815     264,782     294,723  
Total revenues $ 134,759     $ 146,245     $ 263,697     $ 500,698     $ 778,993  
                   
Operating income (loss):                  
Well Site Services:                  
Completion Services $ (14,330)     $ (22,475)     $ 1,719     $ (176,408)     $ (2,282)  
Drilling Services 458     (445)     (36,495)     (5,338)     (43,655)  
Total Well Site Services (13,872)     (22,920)     (34,776)     (181,746)     (45,937)  
Downhole Technologies (12,594)     (11,110)     659     (216,395)     3,251  
Offshore/Manufactured Products 3,875     9,419     11,139     (82,202)     26,207  
Corporate (8,249)     (8,723)     (11,932)     (25,633)     (35,666)  
Total operating loss $ (30,840)     $ (33,334)     $ (34,910)     $ (505,976)     $ (52,145)  


       
(1)   Disaggregated revenue data is provided to supplement the Segment Data.
       
(2)   Operating income (loss) for three months ended September 30, 2020 included a non-cash inventory impairment charge of $5.9 million related to the Downhole Technologies segment. In the Offshore/Manufactured Products segment, operating income (loss) included $0.3 million of severance charges.
       
(3)   Operating income (loss) for the three months ended June 30, 2020 included a non-cash fixed asset impairment charge of $3.0 million and severance and downsizing charges of $3.5 million related to the Completion Services business. In the Downhole Technologies segment, operating income (loss) included $1.3 million of severance and downsizing charges. In the Offshore/Manufactured Products segment, operating income (loss) included $0.3 million of severance charges.
       
(4)   Operating income (loss) for the three months ended September 30, 2019 included severance and downsizing charges of $0.3 million related to the Completion Services business and $0.4 million related to the Offshore/Manufactured Products segment and a non-cash fixed asset impairment charge of $33.7 million related to the Drilling Services business.
       
(5)   Operating income (loss) for the nine months ended September 30, 2020 included a non-cash goodwill impairment charge of $127.1 million, a non-cash inventory impairment charge of $9.0 million and severance and downsizing charges of $3.9 million related to the Completion Services business. In the Drilling Services business, operating income (loss) included a non-cash fixed asset impairment charge of $5.2 million and $0.2 million of severance and downsizing charges. In the Downhole Technologies segment, operating income (loss) included a non-cash goodwill impairment charge of $192.5 million, a non-cash inventory impairment charge of $5.9 million and $1.3 million of severance and downsizing charges. In the Offshore/Manufactured Products segment, operating income (loss) included a non-cash goodwill impairment charge of $86.5 million, non-cash inventory charges of $16.2 million and $0.7 million of severance charges.
       
(6)   Operating income (loss) for the nine months ended September 30, 2019 included severance and downsizing charges of $1.3 million related to the Completions Services business and $1.7 million related to the Offshore/Manufactured Products segment and a non-cash fixed asset impairment charge of $33.7 million related to the Drilling Services business.


OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

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

  Three Months Ended   Nine Months Ended
  September 30,
2020
  June 30,
2020
  September 30,
2019
  September 30,
2020
  September 30,
2019
Well Site Services:                  
Completion Services:                  
Operating income (loss) $ (14,330 )   $ (22,475 )   $ 1,719     $ (176,408 )   $ (2,282 )
Depreciation and amortization expense 12,914     13,352     17,024     41,032     51,558  
Impairment of goodwill             127,054      
Impairment of inventories             8,981      
Impairment of fixed assets     2,992         2,992      
Other income 638     1,115     1,082     2,428     2,472  
EBITDA $ (778 )   $ (5,016 )   $ 19,825     $ 6,079     $ 51,748  
                   
Drilling Services:                  
Operating income (loss) $ 458     $ (445 )   $ (36,495 )   $ (5,338 )   $ (43,655 )
Depreciation and amortization expense 16     16     3,164     302     9,729  
Impairment of fixed assets         33,697     5,198     33,697  
Other income         50         197  
EBITDA $ 474     $ (429 )   $ 416     $ 162     $ (32 )
                   
Total Well Site Services:                  
Operating loss $ (13,872 )   $ (22,920 )   $ (34,776 )   $ (181,746 )   $ (45,937 )
Depreciation and amortization expense 12,930     13,368     20,188     41,334     61,287  
Impairment of goodwill             127,054      
Impairment of inventories             8,981      
Impairments of fixed assets     2,992     33,697     8,190     33,697  
Other income 638     1,115     1,132     2,428     2,669  
Segment EBITDA $ (304 )   $ (5,445 )   $ 20,241     $ 6,241     $ 51,716  
                   
Downhole Technologies:                  
Operating income (loss) $ (12,594 )   $ (11,110 )   $ 659     $ (216,395 )   $ 3,251  
Depreciation and amortization expense 5,701     5,619     5,309     16,904     15,631  
Impairment of goodwill             192,502      
Impairment of inventories 5,921             5,921      
Other income (expense) (7 )   (13 )   (2 )   (97 )   12  
Segment EBITDA $ (979 )   $ (5,504 )   $ 5,966     $ (1,165 )   $ 18,894  
                   
Offshore/Manufactured Products:                  
Operating income (loss) $ 3,875     $ 9,419     $ 11,139     $ (82,202 )   $ 26,207  
Depreciation and amortization expense 5,401     5,476     5,680     16,505     17,240  
Impairment of goodwill             86,500      
Impairment of inventories             16,249      
Other income 171     113     60     460     185  
Segment EBITDA $ 9,447     $ 15,008     $ 16,879     $ 37,512     $ 43,632  
                   
Corporate:                  
Operating loss $ (8,249 )   $ (8,723 )   $ (11,932 )   $ (25,633 )   $ (35,666 )
Depreciation and amortization expense 219     183     189     563     642  
EBITDA $ (8,030 )   $ (8,540 )   $ (11,743 )   $ (25,070 )   $ (35,024 )


OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(In Thousands)
(unaudited)

  Three Months Ended   Nine Months Ended
  September 30,
2020
  June 30,
2020
  September 30,
2019
  September 30,
2020
  September 30,
2019
                   
Net loss $ (19,969 )   $ (24,626 )   $ (31,868 )   $ (449,636 )   $ (56,256 )
Income tax benefit (7,676 )   (6,893 )   (6,204 )   (54,060 )   (6,744 )
Depreciation and amortization expense 24,251     24,646     31,366     75,306     94,800  
Impairments of goodwill             406,056      
Impairments of inventories 5,921             31,151      
Impairments of fixed assets     2,992     33,697     8,190     33,697  
Interest expense, net 3,549     4,179     4,352     11,232     13,721  
Gains on extinguishment of 1.50% convertible senior notes (5,942 )   (4,779 )       (10,721 )    
Consolidated EBITDA (A) $ 134     $ (4,481 )   $ 31,343     $ 17,518     $ 79,218  


       
(A)   The term Consolidated EBITDA consists of net loss plus net interest expense, taxes, depreciation and amortization expense, and adjustments for certain other items such as non-cash asset impairment charges and gains on extinguishment of 1.50% convertible senior notes. Consolidated 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 loss or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. Additionally, Consolidated EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included Consolidated EBITDA as a supplemental disclosure because its management believes that 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 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 to net loss, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles.
     
(B)   The terms EBITDA and Segment EBITDA consist of operating income (loss) plus depreciation and amortization expense, and adjustments for certain other items such as non-cash asset impairment charges. EBITDA and 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 and Segment EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included EBITDA and Segment EBITDA as a supplemental disclosure because its management believes that EBITDA and 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 and 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 and 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.


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Source: Oil States International, Inc.

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