OII
$27.01
Oceaneering International
($.28)
(1.03%)
Earnings Details
3rd Quarter September 2016
Thursday, October 27, 2016 6:06:00 PM
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Summary

Oceaneering International (OII) Recent Earnings

Oceaneering International (OII) reported 3rd Quarter September 2016 earnings of $0.17 per share on revenue of $549.3 million. The consensus earnings estimate was $0.16 per share on revenue of $602.6 million. Revenue fell 26.1% compared to the same quarter a year ago.

Oceaneering International Inc is an oilfield provider of engineered services and products to the offshore oil and gas industry, with a focus on deepwater applications.

Results
Reported Earnings
$0.17
Earnings Whisper
-
Consensus Estimate
$0.16
Reported Revenue
$549.3 Mil
Revenue Estimate
$602.6 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Oceaneering Reports Third Quarter 2016 Results

Oceaneering International, Inc. ("Oceaneering") (OII) today reported a net loss of $11.8 million, or $(0.12) per share, on revenue of $549 million for the three months ended September 30, 2016. Adjusted net income was $16.6 million, or $0.17 per share, excluding $43.6 million of pre-tax charges recognized during the quarter and the related tax effects of those charges. These charges included $36.0 million related to the Remotely Operated Vehicles ("ROV") segment and $8.2 million related to the Subsea Products segment.

During the prior quarter ended June 30, 2016, Oceaneering reported net income of $22.3 million, or $0.23 per share, on revenue of $626 million; adjusted net income was $26.8 million, or $0.27 per share.

Adjusted operating income, net income and earnings per share are non-GAAP measures which exclude the impacts of certain identified items. Reconciliations to the corresponding GAAP measures are shown in the tables Adjusted Net Income and Diluted Earnings per Share (EPS) and Adjusted Operating Income and Margins by Segment. These tables are included below under the caption Reconciliation of Non-GAAP to GAAP Financial Information.

Summary of Results
(in thousands, except per share amounts)
Three Months Ended
Nine Months Ended
Sep 30,
Jun 30,
Sep 30,
2016
2015
2016
2016
2015
Revenue
$
549,275
$
743,613
$
625,539
$
1,783,158
$
2,340,688
Gross Margin
35,443
168,313
95,233
228,156
499,307
Income (Loss) from Operations
(11,856)
113,464
38,380
74,623
328,054
Net Income (Loss)
$
(11,798)
$
68,539
$
22,309
$
35,614
$
203,506
Diluted Earnings Per Share (EPS)
$
(0.12)
$
0.70
$
0.23
$
0.36
$
2.06

Sequentially, adjusted operating income declined 27% due to reduced profit contributions from Subsea Products and ROV, partially offset by improved results from Subsea Projects and Asset Integrity.

M. Kevin McEvoy, Chief Executive Officer of Oceaneering, stated, "On an adjusted basis, our third quarter operating results were in line with our expectations and the consensus estimate. However, the leading indicator for deepwater activity, contracted floating rigs, continued to decline, as the rate of rigs being idled, either by contract termination or expiration, continued unabated. This prevailing market condition required us to reassess the number of ROVs we have in our fleet, as well as the associated inventory. As a result of our reassessment, we recorded a $36.0 million charge related to our retirement of 39 ROVs this quarter (for a net book value of $10.8 million) and established a $25.2 million reserve for excess inventory. We also scrutinized assets in our Subsea Products segment and recorded an $8.2 million charge, related predominantly to tools and inventory in our portfolio used to support deepwater drilling and operations.

"Compared to the second quarter, ROV adjusted operating income was down substantially, due to a 4% reduction in revenue per day-on-hire and 6% fewer days utilized. For the third quarter, ROV adjusted operating income and EBITDA margins were 10% and 36%, respectively, compared to (19)% and 16% on an unadjusted basis.

"At the end of September, we had 279 vehicles in our fleet and utilization for the quarter was 52%. The 39 ROVs retired worked a total of 349 days in the third quarter; pro forma quarterly utilization, reflecting these vehicles as if they had been retired effective as of the beginning of the quarter was 58%.

"We held our share of the contracted floating drill support market with 56% of the 162 contracted rigs. In light of the current shrinking available drill support market, we remain focused on maintaining our ROV market share on contracted rigs and the rigs most likely to return to work. We are also actively working with vessel owners to increase the number of ROVs onboard third-party vessels.

"Sequentially, Subsea Products operating income, on an adjusted basis, declined as expected, due to a combination of lower pricing in our Service and Rental business unit, and lower margins on Manufactured Products as we processed backlog and new orders with lower pricing. Our Subsea Products backlog at September 30, 2016 was $457 million, compared to our June 30, 2016 backlog of $503 million. The backlog decline was primarily related to our Service and Rental business unit. We expect our Subsea Products operating margin to further weaken into the low single-digit territory on considerable backlog pricing degradation, lower throughput, and softer demand for short-cycle services and rentals. Our book-to-bill ratio for the third quarter was 0.71, and year-to-date it was 0.64.

"Compared to the second quarter, Subsea Projects operating income was higher despite a decline in revenue, as a result of some seasonal increase for diving services and survey work in the Gulf of Mexico and a reduction of our vessel fixed costs when the Olympic Intervention IV charter obligation expired in July. Asset Integrity operating income improved, primarily as a result of a smaller workforce, and due to the fact that the second quarter results included a significant bad debt expense. Advanced Technologies operating income was down slightly on flat revenues. Unallocated Expenses were slightly lower.

"Looking forward, we believe our fourth quarter results will be considerably lower than our adjusted third quarter results due to a continuation of weak demand for our services and products, exacerbated by seasonality. We expect sequentially lower operating income from each of our oilfield business segments, and slightly improved results from our non-oilfield segment Advanced Technologies.

"With limited visibility, our outlook for 2017 can be characterized as marginally profitable at the operating income level on a consolidated basis. We expect the largest decline in profitability, year over year, to occur in Subsea Products and ROVs. Of course, we intend to continue managing our operations to optimize returns by tailoring costs and resources to match our current demand profile as we prepare for the industry recovery we expect.

"Today we also announced that we have reduced our quarterly dividend to $0.15 per share. While our ability to generate substantial free cash flow remains strong, our balance sheet is very sound, and we have ample liquidity, we believe it was prudent to lower our cash distribution to shareholders to a sustainable level, in light of the projected low level of offshore activity through 2017.

"We remain committed to growing the company organically and through bolt-on acquisitions. Our recent purchase of the assets of Blue Ocean Technologies, LLC underscores our strategy of increasing our services and products offerings focused on the production phase of the offshore oilfield life cycle. We believe this strategy will position Oceaneering well for the eventual offshore and subsea market upcycle we expect."

This release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as to the expectations, beliefs and future expected business, financial performance and prospects of the Company. More specifically, the forward-looking statements in this press release include the statements concerning Oceaneering’s: expectation to continue to focus on maintaining ROV market share on contracted rigs and rigs most likely to return to work; expectation to actively work with vessel owners to increase the number of ROVs onboard third-party vessels; statements about backlog, to the extent it may be an indicator of future revenue or profitability; expectation about Subsea Products’ margins; outlook for the fourth quarter of 2016 and for 2017 and expected contributions of its segments to the operating results; operating strategy; expectation for an industry recovery; and belief that its strategy to grown the company organically and through bolt-on acquisitions positions it well for the eventual offshore and subsea market cycle recovery. The forward-looking statements included in this release are based on our current expectations and are subject to certain risks, assumptions, trends and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements. Among the factors that could cause actual results to differ materially include backlog, costs, capital expenditures, future earnings, capital allocation strategies, dividend levels, sustainability of dividend levels, liquidity, competitive position, financial flexibility, debt levels, forecasts or expectations regarding business outlook; growth for Oceaneering as a whole and for each of its segments (and for specific products or geographic areas within each segment); factors affecting the level of activity in the oil and gas industry; supply and demand of drilling rigs; oil and natural gas demand and production growth; oil and natural gas prices; fluctuations in currency markets worldwide; the loss of major contracts or alliances; future global economic conditions; and future results of operations. For a more complete discussion of these risk factors, please see Oceaneering’s latest annual report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.

Oceaneering is a global provider of engineered services and products, primarily to the offshore oil and gas industry, with a focus on deepwater applications. Through the use of its applied technology expertise, Oceaneering also serves the defense, entertainment, and aerospace industries.

For more information on Oceaneering, please visit www.oceaneering.com.

Contact: Suzanne Spera Director, Investor Relations Oceaneering International, Inc. 713-329-4707 investorrelations@oceaneering.com

OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Sep 30, 2016
Dec 31, 2015
(in thousands)
ASSETS
Current Assets (including cash and cash equivalents of $441,625 and $385,235)
$
1,359,268
$
1,517,493
Net Property and Equipment
1,166,971
1,266,731
Other Assets
711,331
645,312
TOTAL ASSETS
$
3,237,570
$
3,429,536
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
$
501,073
$
615,956
Long-term Debt
802,256
795,836
Other Long-term Liabilities
362,461
439,010
Shareholders’ Equity
1,571,780
1,578,734
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
3,237,570
$
3,429,536
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended
For the Nine Months Ended
Sep 30, 2016
Sep 30, 2015
Jun 30, 2016
Sep 30, 2016
Sep 30, 2015
(in thousands, except per share amounts)
Revenue
$
549,275
$
743,613
$
625,539
$
1,783,158
$
2,340,688
Cost of services and products
513,832
575,300
530,306
1,555,002
1,841,381
Gross Margin
35,443
168,313
95,233
228,156
499,307
Selling, general and administrative expense
47,299
54,849
56,853
153,533
171,253
Income (loss) from Operations
(11,856)
113,464
38,380
74,623
328,054
Interest income
684
229
1,442
2,421
436
Interest expense
(6,325)
(6,396)
(6,207)
(18,924)
(18,696)
Equity earnings (losses) of unconsolidated affiliates (246)
1,567
263
543
1,313
Other income (expense), net
570
(9,099)
(1,405)
(6,823)
(14,883)
Income before Income Taxes
(17,173)
99,765
32,473
51,840
296,224
Provision for income taxes (benefit)
(5,375)
31,226
10,164
16,226
92,718
Net Income (loss)
$
(11,798)
$
68,539
$
22,309
$
35,614
$
203,506
Weighted average diluted shares outstanding
98,061
98,185
98,424
98,384
98,991
Diluted Earnings (Loss) per Share
$
(0.12)
$
0.70
$
0.23
$
0.36
$
2.06
The above Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations should be read in conjunction with the Company’s latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q.
SEGMENT INFORMATION
For the Three Months Ended
For the Nine Months Ended
Sep 30, 2016
Sep 30, 2015
Jun 30, 2016
Sep 30, 2016
Sep 30, 2015
($ in thousands)
Remotely Operated Vehicles
Revenue
$
126,507
$
198,426
$
139,641
$
413,769
$
634,299
Gross Margin
$
(16,288)
$
60,681
$
26,925
$
45,959
$
202,124
Operating Income (Loss)
$
(23,845)
$
52,417
$
18,020
$
21,162
$
175,893
Operating Income (Loss) %
(19)
%
26
%
13
%
5
%
28
%
Days available
29,126
31,025
28,959
86,904
91,621
Days utilized
15,156
21,229
16,057
47,218
65,078
Utilization %
52
%
68
%
55
%
54
%
71
%
Subsea Products
Revenue
$
157,269
$
220,039
$
190,897
$
542,978
$
700,825
Gross Margin
$
20,423
$
64,078
$
42,728
$
119,287
$
196,310
Operating Income
$
6,109
$
46,079
$
25,121
$
71,870
$
138,379
Operating Income %
4
%
21
%
13
%
13
%
20
%
Backlog at end of period
$
457,000
$
736,000
$
503,000
$
457,000
$
736,000
Subsea Projects
Revenue
$
110,799
$
147,191
$
138,662
$
378,883
$
473,087
Gross Margin
$
19,321
$
34,830
$
14,317
$
45,147
$
98,719
Operating Income
$
15,029
$
28,841
$
10,237
$
32,055
$
81,724
Operating Income %
14
%
20
%
7
%
8
%
17
%
Asset Integrity
Revenue
$
71,995
$
95,609
$
73,864
$
215,459
$
289,611
Gross Margin
$
11,591
$
15,009
$
10,096
$
29,030
$
39,558
Operating Income (Loss)
$
4,725
$
8,549
$
(805)
$
4,354
$
18,150
Operating Income (Loss) %
7
%
9
%
(1)
%
2
%
6
%
Advanced Technologies
Revenue
$
82,705
$
82,348
$
82,475
$
232,069
$
242,866
Gross Margin
$
9,665
$
6,974
$
10,600
$
26,092
$
27,319
Operating Income
$
4,357
$
1,635
$
5,528
$
10,478
$
12,922
Operating Income %
5
%
2
%
7
%
5
%
5
%
Unallocated Expenses
Gross Margin
$
(9,269)
$
(13,259)
$
(9,433)
$
(37,359)
$
(64,723)
Operating Income
$
(18,231)
$
(24,057)
$
(19,721)
$
(65,296)
$
(99,014)
TOTAL
Revenue
$
549,275
$
743,613
$
625,539
$
1,783,158
$
2,340,688
Gross Margin
$
35,443
$
168,313
$
95,233
$
228,156
$
499,307
Operating Income (Loss)
$
(11,856)
$
113,464
$
38,380
$
74,623
$
328,054
Operating Income (Loss) %
(2)
%
15
%
6
%
4
%
14
%
SELECTED CASH FLOW INFORMATION
For the Three Months Ended
For the Nine Months Ended
Sep 30, 2016
Sep 30, 2015
Jun 30, 2016
Sep 30, 2016
Sep 30, 2015
($ in thousands)
Capital expenditures, including acquisitions
$
32,945
$
44,428
$
31,738
$
85,889
$
369,187
Depreciation and Amortization:
Oilfield
Remotely Operated Vehicles
$
43,705
$
35,094
$
34,026
$
111,415
$
107,236
Subsea Products
14,205
12,681
12,952
39,964
38,247
Subsea Projects
8,575
9,782
8,353
25,447
24,140
Asset Integrity
5,980
2,663
2,843
11,736
8,222
Total Oilfield
72,465
60,220
58,174
188,562
177,845
Advanced Technologies
789
618
806
2,329
1,879
Unallocated Expenses
946
1,184
999
3,069
3,784
$
74,200
$
62,022
$
59,979
$
193,960
$
183,508

RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL INFORMATION

In addition to financial results determined in accordance with U.S. generally accepted accounting principles ("GAAP"), this Press Release also includes non-GAAP financial measures (as defined under SEC Regulation G). We have included Adjusted Net Income and Diluted Earnings per Share, each of which excludes the effects of certain specified items, as set forth in the tables that follow. As a result, these amounts are non-GAAP financial measures. We believe these are useful measures for investors to review because they provide consistent measures of the underlying results of our ongoing business. Furthermore, our management uses these measures as measures of the performance of our operations. We have also included disclosures of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), EBITDA Margins and Free Cash Flow, as well as the following by segment: Adjusted Operating Income and Margins, EBITDA, Adjusted EBITDA and Adjusted EBITDA Margins. We define EBITDA margin as EBITDA divided by revenue. Adjusted EBITDA and Adjusted EBITDA Margins as well as Adjusted Operating Income and Margin and related information by segment exclude the effects of certain specified items, as set forth in the tables that follow. EBITDA and EBITDA margins, Adjusted EBITDA and Adjusted EBITDA margins, and Adjusted Operating Income and Margin and related information by segment are each non-GAAP financial measures. We define Free Cash Flow as cash flow provided by operating activities less organic capital expenditures (i.e., purchases of property and equipment other than those in business acquisitions). We have included these disclosures in this press release because EBITDA, EBITDA margins and Free Cash Flow are widely used by investors for valuation and comparing our financial performance with the performance of other companies in our industry, and the adjusted amounts thereof (as well as Adjusted Operating Income and Margin by Segment) provide more consistent measures than the unadjusted amounts. Furthermore, our management uses these measures for purposes of evaluating our financial performance. Our presentation of EBITDA, EBITDA margins and Free Cash Flow (and the Adjusted amounts thereof) may not be comparable to similarly titled measures other companies report. Non-GAAP financial measures should be viewed in addition to and not as substitutes for our reported operating results, cash flows or any other measure prepared and reported in accordance with GAAP. The tables that follow provide reconciliations of the non-GAAP measures used in this press release to the most directly comparable GAAP measures.

RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL INFORMATION
(continued)
Adjusted Net Income and Diluted Earnings per Share (EPS)
For the Three Months Ended
Sep 30, 2016
Sep 30, 2015
Net Income
Diluted EPS
Net Income
Diluted EPS
(in thousands, except per share amounts)
Net Income (Loss) and Diluted EPS as reported in accordance with GAAP
$
(11,798)
$
(0.12)
$
68,539
$
0.70
Adjustments for the effects of:
Inventory write-downs
30,490
--
Restructuring expenses
--
11,712
Fixed asset write-offs
13,790
--
Foreign currency (gains) losses
(643)
9,155
Total pre tax adjustments
43,637
20,867
Tax effect
15,273
7,303
Total adjustments after tax
28,364
13,564
Adjusted amounts
$
16,566
$
0.17
$
82,103
$
0.84
For the Nine Months Ended
Sep 30, 2016
Sep 30, 2015
Net Income
Diluted EPS
Net Income
Diluted EPS
(in thousands, except per share amounts)
Net Income and Diluted EPS as reported in accordance with GAAP
$
35,614
$
0.36
$
203,506
$
2.06
Adjustments for the effects of:
Inventory write-downs
30,490
9,025
Restructuring expenses
--
11,712
Allowance for bad debts
5,569
--
Fixed asset write-offs
13,790
--
Foreign currency losses
6,459
14,422
Total pre tax adjustments
56,308
35,159
Tax effect
19,708
12,306
Total adjustments after tax
36,600
22,853
Adjusted amounts
$
72,214
$
0.73
$
226,359
$
2.29
Notes:
The incremental applicable income tax rate used for each period presented is 35%.
Weighted average number of diluted shares in each period presented is the same for each adjusting item as used in accordance with GAAP for that period, except for the three-month period ended September 30, 2016, where we used 98,444,000 instead of the GAAP shares of 98,061,000, as our share equivalents became dilutive based on the amount of adjusted net income.
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
(continued)
EBITDA and EBITDA Margins
For the Three Months Ended
For the Nine Months Ended
For the Year Ended
Sep 30, 2016
Sep 30, 2015
Jun 30, 2016
Sep 30, 2016
Sep 30, 2015
Dec 31, 2015
($ in thousands)
Net Income (Loss)
$
(11,798)
$
68,539
$
22,309
$
35,614
$
203,506
$
231,011
Depreciation and Amortization
74,200
62,022
59,979
193,960
183,508
241,235
Subtotal
62,402
130,561
82,288
229,574
387,014
472,246
Interest Expense, net of Interest Income 5,641
6,167
4,765
16,503
18,260
24,443
Amortization included in Interest Expense(287)
(266)
(286)
(860)
(797)
(1,077)
Provision for Income Taxes (Benefit)
(5,375)
31,226
10,164
16,226
92,718
105,250
EBITDA
$
62,381
$
167,688
$
96,931
$
261,443
$
497,195
$
600,862
Revenue
$
549,275
$
743,613
$
625,539
$
1,783,158
$
2,340,688
$
3,062,754
EBITDA margin %
11
%
23
%
15
%
15
%
21
%
20
%
Free Cash Flow
For the Nine Months Ended
Sep 30, 2016
Sep 30, 2015
(in thousands)
Net income
$
35,614
$
203,506
Depreciation and amortization
193,960
183,508
Other increases in cash from operating activities 33,176
(13,954)
Cash flow provided by operating activities
262,750
373,060
Purchases of
property and equipment
(83,389)
(139,208)
Free Cash Flow
$
179,361
$
233,852
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
(continued)
Adjusted Operating Income and Margins by Segment
For the Three Months Ended September 30, 2016
Remotely Operated Vehicles
Subsea Products
Subsea Projects
Asset
Advanced Tech.
Unalloc. Expenses
Total
Integrity
(in thousands)
Operating income (loss) as reported in accordance with GAAP
$
(23,845)
$
6,109
$
15,029
$
4,725
$
4,357
$
(18,231)
$
(11,856)
Adjustments for the effects of:
Inventory write-downs
25,200
5,290
--
--
--
--
30,490
Fixed asset write-offs
10,840
2,950
--
--
--
--
13,790
Total of adjustments
36,040
8,240
--
--
--
--
44,280
Adjusted amounts
$
12,195
$
14,349
$
15,029
$
4,725
$
4,357
$
(18,231)
$
32,424
Revenue
$
126,507
$
157,269
$
110,799
$
71,995
$
82,705
$
549,275
Operating income (loss) % as reported in accordance with GAAP (19)
%
4
%
14
%
7
%
5
%
(2)
%
Operating income % using adjusted amounts
10
%
9
%
14
%
7
%
5
%
6
%
For the Three Months Ended September 30, 2015
Remotely Operated Vehicles
Subsea Products
Subsea Projects
Asset
Advanced Tech.
Unalloc. Expenses
Total
Integrity
(in thousands)
Operating income as reported in accordance with GAAP
$
52,417
$
46,079
$
28,841
$
8,549
$
1,635
$
(24,057)
$
113,464
Adjustments for the effects of:
Restructuring expenses
4,047
3,706
634
2,766
173
386
11,712
Total of adjustments
4,047
3,706
634
2,766
173
386
11,712
Adjusted amounts
$
56,464
$
49,785
$
29,475
$
11,315
$
1,808
$
(23,671)
$
125,176
Revenue
$
198,426
$
220,039
$
147,191
$
95,609
$
82,348
$
743,613
Operating income % as reported in accordance with GAAP
26
%
21
%
20
%
9
%
2
%
15
%
Operating income % using adjusted amounts
28
%
23
%
20
%
12
%
2
%
17
%
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
(continued)
Adjusted Operating Income and Margins by Segment
For the Nine Months Ended September 30, 2016
Remotely Operated Vehicles
Subsea Products
Subsea Projects
Asset
Advanced Tech.
Unalloc. Expenses
Total
Integrity
(in thousands)
Operating income as reported in accordance with GAAP
$
21,162
$
71,870
$
32,055
$
4,354
$
10,478
$
(65,296)
$
74,623
Adjustments for the effects of:
Inventory write-downs
25,200
5,290
--
--
--
--
30,490
Allowance for bad debts
340
1,770
127
3,332
--
--
5,569
Fixed asset write-offs
10,840
2,950
--
--
--
--
13,790
Total of adjustments
36,380
10,010
127
3,332
--
--
49,849
Adjusted amounts
$
57,542
$
81,880
$
32,182
$
7,686
$
10,478
$
(65,296)
$
124,472
Revenue
$
413,769
$
542,978
$
378,883
$
215,459
$
232,069
$
1,783,158
Operating income % as reported in accordance with GAAP 5
%
13
%
8
%
2
%
5
%
4
%
Operating income % using adjusted amounts
14
%
15
%
8
%
4
%
5
%
7
%
For the Nine Months Ended September 30, 2015
Remotely Operated Vehicles
Subsea Products
Subsea Projects
Asset
Advanced Tech.
Unalloc. Expenses
Total
Integrity
(in thousands)
Operating income as reported in accordance with GAAP
$
175,893
$
138,379
$
81,724
$
18,150
$
12,922
$
(99,014)
$
328,054
Adjustments for the effects of:
Inventory write-downs
--
9,025
--
--
--
--
9,025
Restructuring expenses
4,047
3,706
634
2,766
173
386
11,712
Total of adjustments
4,047
12,731
634
2,766
173
386
20,737
Adjusted amounts
$
179,940
$
151,110
$
82,358
$
20,916
$
13,095
$
(98,628)
$
348,791
Revenue
$
634,299
$
700,825
$
473,087
$
289,611
$
242,866
$
2,340,688
Operating income % as reported in accordance with GAAP 28
%
20
%
17
%
6
%
5
%
14
%
Operating income % using adjusted amounts
28
%
22
%
17
%
7
%
5
%
15
%
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
(continued)
EDITDA and Adjusted EBITDA and Margins by Segment
For the Three Months Ended September 30, 2016
Remotely Operated Vehicles
Subsea Products
Subsea Projects
Asset
Advanced Tech.
Unallocated Expenses and other
Total
Integrity
(in thousands)
Operating income as reported in accordance with GAAP
$
(23,845)
$
6,109
$
15,029
$
4,725
$
4,357
$
(18,231)
$
(11,856)
Adjustments for the effects of:
Depreciation and amortization
43,705
14,205
8,575
5,980
789
946
74,200
Other pre-tax
--
--
--
--
--
37
37
EBITDA
19,860
20,314
23,604
10,705
5,146
(17,248)
62,381
Adjustments for the effects of:
Inventory write-downs
25,200
5,290
--
--
--
--
30,490
Total of adjustments
25,200
5,290
--
--
--
--
30,490
Adjusted EBITDA
$
45,060
$
25,604
$
23,604
$
10,705
$
5,146
$
(17,248)
$
92,871
Revenue
$
126,507
$
157,269
$
110,799
$
71,995
$
82,705
$
549,275
Operating income (loss) % as reported in accordance with GAAP (19)
%
4
%
14
%
7
%
5
%
(2)
%
EBITDA Margin
16
%
13
%
21
%
15
%
6
%
11
%
Adjusted EBITDA Margin
36
%
16
%
21
%
15
%
6
%
17
%
For the Three Months Ended September 30, 2015
Remotely Operated Vehicles
Subsea Products
Subsea Projects
Asset
Advanced Tech.
Unallocated Expenses and other
Total
Integrity
(in thousands)
Operating income as reported in accordance with GAAP
$
52,417
$
46,079
$
28,841
$
8,549
$
1,635
$
(24,057)
$
113,464
Adjustments for the effects of:
Depreciation and amortization
35,094
12,681
9,782
2,663
618
1,184
62,022
Other pre-tax
--
--
--
--
--
(7,798)
(7,798)
EBITDA
87,511
58,760
38,623
11,212
2,253
(30,671)
167,688
Adjustments for the effects of:
Restructuring expenses
4,047
3,706
634
2,766
173
386
11,712
Total of adjustments
4,047
3,706
634
2,766
173
386
11,712
Adjusted EBITDA
$
91,558
$
62,466
$
39,257
$
13,978
$
2,426
$
(30,285)
$
179,400
Revenue
$
198,426
$
220,039
$
147,191
$
95,609
$
82,348
$
743,613
Operating income % as reported in accordance with GAAP
26
%
21
%
20
%
9
%
2
%
15
%
EBITDA Margin
44
%
27
%
26
%
12
%
3
%
23
%
Adjusted EBITDA Margin
46
%
28
%
27
%
15
%
3
%
24
%
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
(continued)
EDITDA and Adjusted EBITDA and Margins by Segment
For the Nine Months Ended September 30, 2016
Remotely Operated Vehicles
Subsea Products
Subsea Projects
Asset
Advanced Tech.
Unallocated Expenses and other
Total
Integrity
(in thousands)
Operating income as reported in accordance with GAAP
$
21,162
$
71,870
$
32,055
$
4,354
$
10,478
$
(65,296)
$
74,623
Adjustments for the effects of:
Depreciation and amortization
111,415
39,964
25,447
11,736
2,329
3,069
193,960
Other pre-tax
--
--
--
--
--
(7,140)
(7,140)
EBITDA
132,577
111,834
57,502
16,090
12,807
(69,367)
261,443
Adjustments for the effects of:
Inventory write-downs
25,200
5,290
--
--
--
--
30,490
Allowance for bad debts
340
1,770
127
3,332
--
--
5,569
Total of adjustments
25,540
7,060
127
3,332
--
--
36,059
Adjusted EBITDA
$
158,117
$
118,894
$
57,629
$
19,422
$
12,807
$
(69,367)
$
297,502
Revenue
$
413,769
$
542,978
$
378,883
$
215,459
$
232,069
$
1,783,158
Operating income % as reported in accordance with GAAP 5
%
13
%
8
%
2
%
5
%
4
%
EBITDA Margin
32
%
21
%
15
%
7
%
6
%
15
%
Adjusted EBITDA Margin
38
%
22
%
15
%
9
%
6
%
17
%
For the Nine Months Ended September 30, 2015
Remotely Operated Vehicles
Subsea Products
Subsea Projects
Asset
Advanced Tech.
Unallocated Expenses and other
Total
Integrity
(in thousands)
Operating income as reported in accordance with GAAP
$
175,893
$
138,379
$
81,724
$
18,150
$
12,922
$
(99,014)
$
328,054
Adjustments for the effects of:
Depreciation and amortization
107,236
38,247
24,140
8,222
1,879
3,784
183,508
Other pre-tax
--
--
--
--
--
(14,367)
(14,367)
EBITDA
283,129
176,626
105,864
26,372
14,801
(109,597)
497,195
Adjustments for the effects of:
Inventory write-downs
--
9,025
--
--
--
--
9,025
Restructuring expenses
4,047
3,706
634
2,766
173
386
11,712
Total of adjustments
4,047
12,731
634
2,766
173
386
20,737
Adjusted EBITDA
$
287,176
$
189,357
$
106,498
$
29,138
$
14,974
$
(109,211)
$
517,932
Revenue
$
634,299
$
700,825
$
473,087
$
289,611
$
242,866
$
2,340,688
Operating income % as reported in accordance with GAAP 28
%
20
%
17
%
6
%
5
%
14
%
EBITDA Margin
45
%
25
%
22
%
9
%
6
%
21
%
Adjusted EBITDA Margin
45
%
27
%
23
%
10
%
6
%
22
%

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/oceaneering-reports-third-quarter-2016-results-300353117.html

SOURCE Oceaneering International, Inc.

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