OII
$25.02
Oceaneering International
($.32)
(1.26%)
Earnings Details
4th Quarter December 2016
Wednesday, February 08, 2017 5:02:00 PM
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Summary

Oceaneering International (OII) Recent Earnings

Oceaneering International (OII) reported 4th Quarter December 2016 earnings of $0.03 per share on revenue of $488.4 million. The consensus estimate was a loss of $0.01 per share on revenue of $502.5 million. Revenue fell 32.4% 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
$0.03
Earnings Whisper
-
Consensus Estimate
($0.01)
Reported Revenue
$488.4 Mil
Revenue Estimate
$502.5 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Oceaneering Reports Fourth Quarter and Full Year 2016 Results

Oceaneering International, Inc. ("Oceaneering") (OII) today reported a net loss of $11.0 million, or $(0.11) per share, on revenue of $488 million for the three months ended December 31, 2016. Adjusted net income was $2.6 million, or $0.03 per share, excluding $12.9 million of pre-tax charges and an increase in the annual effective income tax rate recognized during the quarter. During the prior quarter ended September 30, 2016, Oceaneering reported a net loss of $11.8 million, or $(0.12) per share, on revenue of $549 million, and adjusted net income of $16.6 million, or $0.17 per share.

For the full year 2016, Oceaneering reported net income of $24.6 million, or $0.25 per share, on revenue of $2.3 billion. Adjusted net income was $74.8 million, or $0.76 per share, excluding the $50.2 million after-tax impact of asset write-downs, restructuring expenses, allowances for bad debts and foreign currency losses, and higher-than-expected effective tax rate recognized during the year. This compared to 2015 net income of $231 million, or $2.34 per share, on revenue of $3.1 billion, and adjusted net income of $284 million, or $2.87 per share.

Adjusted operating income, net income, earnings per share, and EBITDA and margins 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), Adjusted Operating Income and Margins by Segment, and EBITDA and Adjusted EBITDA and Margins by Segment. These tables are included below under the caption Reconciliations of Non-GAAP to GAAP Financial Information.

Summary of Results
(in thousands, except per share amounts)
Three Months Ended
Years Ended
Dec 31,
Sep 30,
Dec 31,
2016
2015
2016
2016
2015
Revenue
$
488,445
$
722,066
$
549,275
$
2,271,603
$
3,062,754
Gross Margin
51,071
106,122
35,443
279,227
605,429
Income (Loss) from Operations
(3,859)
45,756
(11,856)
70,764
373,810
Net Income (Loss)
$
(11,028)
$
27,505
$
(11,798)
$
24,586
$
231,011
Diluted Earnings Per Share (EPS)
$
(0.11)
$
0.28
$
(0.12)
$
0.25
$
2.34

For the fourth quarter, adjusted operating income was $21.6 million lower than that of the immediately preceding quarter due to reduced profit contributions from most of Oceaneering’s segments, with the exception of Asset Integrity. Almost one-half of the decline was driven by lower activity levels and profitability in Subsea Projects. The increase in the 2016 effective tax rate was primarily due to a change in the mix of income or losses between the U.S. and certain foreign jurisdictions. This resulted in a recapture of prior year U.S. manufacturing deductions and a limitation of the current benefit from certain foreign tax payments.

M. Kevin McEvoy, Chief Executive Officer of Oceaneering, stated, "Our fourth quarter operating results on an adjusted basis approximated our expectations and the consensus estimate. As industry conditions remained challenging, and our outlook for 2017 does not assume a pronounced recovery in demand for our services and products, our focus has been on organizing more effectively and managing our cost structure. Accordingly, these restructuring steps included a sizable reduction in our workforce. We made these difficult decisions to enable our organization to be leaner and appropriately sized for the expected level of business.

"We believe our demonstrated cash flow generating capabilities and liquidity (including $450 million in cash at year end and a $500 million revolving credit facility) provide us ample resources not only to manage our business through the prolonged downturn in offshore activity, but also to position ourselves for the eventual upcycle. We intend to continue investing in our current and adjacent market niches, with more focus on our customers’ operating expenditures and the production phase of the offshore oilfield life cycle.

"Compared to the third quarter, on an adjusted basis, ROV operating income was down, resulting from a 14% reduction of revenue and 16% fewer days utilized. For the fourth quarter, ROV adjusted EBITDA margins remained respectable at 35%, compared to 36% in the third quarter.

"During the fourth quarter we added one new ROV to our fleet, ending the year with a total of 280 vehicles. Our fleet utilization for the fourth quarter was 50%. Our drill support market share during this period was 53% of the 151 floating rigs under contract. As in recent quarters, the decline in the utilization percentage of our ROV fleet is attributable to the reduced number of working floating drilling rigs, and an overall low level of deepwater vessel activity. While we endeavor to place more of our ROVs on vessels, we need a sizable increase in our customers’ offshore spending levels for there to be a discernible increase in ROV fleet utilization and profitability.

"Sequentially, Subsea Products operating income, on an adjusted basis, declined as expected, due to lower margins on Manufactured Products as we processed backlog and new orders with lower pricing. Our Subsea Products backlog at December 31, 2016 was $431 million, compared to our September 30, 2016 backlog of $457 million. The backlog decline was primarily related to umbilicals. Our book-to-bill ratio was 0.82 and 0.68 for the fourth quarter and full year of 2016, respectively.

"Compared to the third quarter, Subsea Projects adjusted operating income was down substantially due to a lower contribution from our diving operations, lower vessel pricing, the previously scheduled drydock of the Ocean Patriot, and a seasonal decrease in survey work in the Gulf of Mexico. Asset Integrity adjusted operating income was up, due to better execution in the completion of several jobs. Advanced Technologies operating income declined, primarily due to a seasonal slowdown in work for the U.S. Navy. Unallocated Expenses were essentially flat.

"Looking forward, we are projecting a further decline in our profitability and to be marginally profitable at the operating income level on a consolidated basis for 2017. Below the operating income line, we are projecting a loss from our equity investment in the Medusa Spar as production has declined, and our interest expense is expected to be slightly higher in 2017 than 2016 due to higher rates and less interest being capitalized.

"Operationally, we anticipate declines in profitability to occur in ROVs and Subsea Products, due primarily to the relatively strong adjusted operating results generated by these segments during the first half of 2016. We expect our Subsea Products operating margins to be in the mid- to high-single digit range considering the cost restructuring measures taken during the fourth quarter. Our Subsea Projects segment is expected to have another challenging year with reduced vessel activity offshore Angola, and continued competitive pressures on vessel dayrates in the spot "call out" market in the Gulf of Mexico. Asset Integrity results are projected to be down slightly year-over-year. For Advanced Technologies, operating income should improve due to a meaningful increase in activity and profit contribution levels within the commercial theme park arena, if the expected projects come to fruition. We expect higher Unallocated Expenses in 2017, as 2016 results included the impact of reversing earlier accruals associated with our long-term incentive compensation plans, as it became evident during the year our performance targets would not be achieved.

"We believe our first quarter 2017 results will be considerably lower than our adjusted fourth quarter results due to a continuation of weak demand for our services and products, exacerbated by seasonality. We expect sequentially lower operating income primarily from our Asset Integrity business segment, and higher Unallocated Expenses. We also expect a discrete additional income tax provision in accordance with a new accounting standard associated with our share based incentive plan.

"For 2017, we expect our organic capital expenditures to total between $90 million and $120 million, including approximately $55 million to $65 million of maintenance capital expenditure and some amounts required to complete the Jones Act vessel Ocean Evolution and the well intervention equipment recently purchased as part of our Blue Ocean Technologies acquisition. At an operating income break-even level, and with this level of organic growth, we should still generate a substantial amount of free cash flow in 2017.

"Beyond 2017, with stable and improving oil prices, we foresee an increase in deepwater expenditures and improving demand for our services and products. Meanwhile, we continue to adjust our organization to be commensurate with the existing level of our business, and look for opportunities to resume growth organically and via acquisitions, while providing a dividend to shareholders."

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: belief that its restructuring steps will enable it to be leaner and appropriately sized for the expected level of business; belief that its demonstrated cash flow generating capabilities, liquidity, and credit facility provide it with ample resources to manage its business through the prolonged downturn in offshore activity and to position itself for the eventual upcycle; characterization of an upcycle as eventual; intention to invest in current and adjacent market niches, focusing more on its customers’ operating expenditures and the production phase of the offshore oilfield life cycle; endeavors to place more ROVs on vessels; belief that it needs a sizable increase in its customers’ offshore spending levels for there to be a discernible increase in its ROV fleet utilization and profitability; statements about backlog, to the extent it may be an indicator of future revenue or profitability; outlook for the full year and first quarter of 2017, and expected contributions of its segments to the operating results and the associated explanations; expectation about Subsea Products margins; our expectation that Advanced Technologies operating income should improve due to a meaningful increase in activity and profit contribution levels within the commercial theme park arena, if the expected projects come to fruition; expectations about higher interest rates and less interest being capitalized; expectation for a discrete additional income tax provision in accordance with a new accounting standard associated with its share base incentive plan; expectations about capital expenditures; expectations about free cash flow generation; expectations about deepwater expenditures and improving demand for its services and products; expectation to continue to adjust its organization to be commensurate with the existing level of its business; and intention to look for opportunities to resume growth organically and via acquisitions, while providing a dividend to shareholders. 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

Tables follow -

OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Dec 31, 2016
Dec 31, 2015
(in thousands)
ASSETS
Current Assets (including cash and cash equivalents of $450,193 and $385,235)
$
1,262,595
$
1,517,493
Net Property and Equipment
1,153,258
1,266,731
Other Assets
714,462
645,312
TOTAL ASSETS
$
3,130,315
$
3,429,536
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
$
508,364
$
615,956
Long-term Debt
793,058
795,836
Other Long-term Liabilities
312,250
439,010
Shareholders’ Equity
1,516,643
1,578,734
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
3,130,315
$
3,429,536
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended
For the Year Ended
Dec 31, 2016
Dec 31, 2015
Sep 30, 2016
Dec 31, 2016
Dec 31, 2015
(in thousands, except per share amounts)
Revenue
$
488,445
$
722,066
$
549,275
$
2,271,603
$
3,062,754
Cost of services and products
437,374
615,944
513,832
1,992,376
2,457,325
Gross Margin
51,071
106,122
35,443
279,227
605,429
Selling, general and administrative expense
54,930
60,366
47,299
208,463
231,619
Income (loss) from Operations
(3,859)
45,756
(11,856)
70,764
373,810
Interest income
1,479
171
684
3,900
607
Interest expense
(6,394)
(6,354)
(6,325)
(25,318)
(25,050)
Equity earnings (losses) of unconsolidated affiliates
(299)
917
(246)
244
2,230
Other income (expense), net
579
(453)
570
(6,244)
(15,336)
Income before Income Taxes
(8,494)
40,037
(17,173)
43,346
336,261
Provision for income taxes (benefit)
2,534
12,532
(5,375)
18,760
105,250
Net Income (loss)
$
(11,028)
$
27,505
$
(11,798)
$
24,586
$
231,011
Weighted average diluted shares outstanding
98,064
98,268
98,061
98,424
98,808
Diluted Earnings (Loss) per Share
$
(0.11)
$
0.28
$
(0.12)
$
0.25
$
2.34
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 Year Ended
Dec 31, 2016
Dec 31, 2015
Sep 30, 2016
Dec 31, 2016
Dec 31, 2015
($ in thousands)
Remotely Operated Vehicles
Revenue
$
108,352
$
173,424
$
126,507
$
522,121
$
807,723
Gross Margin
$
13,079
$
25,206
$
(16,288)
$
59,038
$
227,330
Operating Income (Loss)
$
4,031
$
16,621
$
(23,845)
$
25,193
$
192,514
Operating Income (Loss) %
4
%
10
%
(19)%
5
%
24
%
Days available
25,684
30,323
29,126
112,588
121,944
Days utilized
12,745
18,760
15,156
59,963
83,838
Utilization %
50
%
62
%
52
%
53
%
69
%
Subsea Products
Revenue
$
149,052
$
258,889
$
157,269
$
692,030
$
959,714
Gross Margin
$
20,988
$
61,445
$
20,423
$
140,275
$
257,755
Operating Income
$
4,068
$
37,206
$
6,109
$
75,938
$
175,585
Operating Income %
3
%
14
%
4
%
11
%
18
%
Backlog at end of period
$
431,000
$
652,000
$
457,000
$
431,000
$
652,000
Subsea Projects
Revenue
$
94,096
$
131,397
$
110,799
$
472,979
$
604,484
Gross Margin
$
6,245
$
15,953
$
19,321
$
51,392
$
114,672
Operating Income
$
2,421
$
10,310
$
15,029
$
34,476
$
92,034
Operating Income %
3
%
8
%
14
%
7
%
15
%
Asset Integrity
Revenue
$
59,938
$
83,346
$
71,995
$
275,397
$
372,957
Gross Margin
$
12,428
$
7,784
$
11,591
$
41,458
$
47,342
Operating Income
$
3,197
$
85
$
4,725
$
7,551
$
18,235
Operating Income %
5
%
--
%
7
%
3
%
5
%
Advanced Technologies
Revenue
$
77,007
$
75,010
$
82,705
$
309,076
$
317,876
Gross Margin
$
7,692
$
2,715
$
9,665
$
33,784
$
30,034
Operating Income (Loss)
$
1,331
$
(3,233)
$
4,357
$
11,809
$
9,689
Operating Income (Loss) %
2
%
(4)%
5
%
4
%
3
%
Unallocated Expenses
Gross Margin
$
(9,361)
$
(6,981)
$
(9,269)
$
(46,720)
$
(71,704)
Operating Income
$
(18,907)
$
(15,233)
$
(18,231)
$
(84,203)
$
(114,247)
TOTAL
Revenue
$
488,445
$
722,066
$
549,275
$
2,271,603
$
3,062,754
Gross Margin
$
51,071
$
106,122
$
35,443
$
279,227
$
605,429
Operating Income (Loss)
$
(3,859)
$
45,756
$
(11,856)
$
70,764
$
373,810
Operating Income (Loss) %
(1)%
6
%
(2)%
3
%
12
%
SELECTED CASH FLOW INFORMATION
For the Three Months Ended
For the Year Ended
Dec 31, 2016
Dec 31, 2015
Sep 30, 2016
Dec 31, 2016
Dec 31, 2015
(in thousands)
Capital expenditures, including acquisitions
$
56,624
$
54,801
$
32,945
$
142,513
$
423,988
Depreciation and Amortization:
Oilfield
Remotely Operated Vehicles
$
29,552
$
36,128
$
43,705
$
140,967
$
143,364
Subsea Products
13,795
11,545
14,205
53,759
49,792
Subsea Projects
8,595
5,723
8,575
34,042
29,863
Asset Integrity
2,600
2,491
5,980
14,336
10,713
Total Oilfield
54,542
55,887
72,465
243,104
233,732
Advanced Technologies
791
670
789
3,120
2,549
Unallocated Expenses
954
1,170
946
4,023
4,954
Total depreciation and amortization
$
56,287
$
57,727
$
74,200
$
250,247
$
241,235

RECONCILIATIONS 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.

RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
(continued)
Adjusted Net Income and Diluted Earnings per Share (EPS)
For the Three Months Ended
Dec 31, 2016
Dec 31, 2015
Sep 30, 2016
Net Income
Diluted EPS
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
$
(11,028)
$
(0.11)
$
27,505
$
0.28
$
(11,798)
$
(0.12)
Pre tax adjustments for the effects of:
Inventory write-downs
--
16,965
30,490
Restructuring expenses
11,809
13,692
--
Fixed asset write-offs
--
2,911
13,790
Non-current asset reserve
--
6,583
--
Allowance for bad debts
2,827
4,851
--
Foreign currency (gains) losses
(1,689)
938
(643)
Total pre tax adjustments
12,947
45,940
43,637
Tax effect on pre tax adjustments at the 35% statutory rate
(4,531)
(16,079)
(15,273)
Difference in tax provision on income before taxes in accordance with GAAP
5,193
--
--
Total of adjustments
13,609
29,861
28,364
Adjusted amounts
$
2,581
$
0.03
$
57,366
$
0.58
$
16,566
$
0.17
For the Years Ended
Dec 31, 2016
Dec 31, 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
$
24,586
$
0.25
$
231,011
$
2.34
Pre tax adjustments for the effects of:
Inventory write-downs
30,490
25,990
Restructuring expenses
11,809
25,404
Allowance for bad debts
8,396
4,851
Non-current asset reserve
--
6,583
Fixed asset write-offs
13,790
2,911
Foreign currency losses
4,770
15,360
Total pre tax adjustments
69,255
81,099
Tax effect on pre tax adjustments at the 35% statutory rate
(24,239)
(28,385)
Difference in tax provision on income before taxes in accordance with GAAP
5,193
--
Total of adjustments
50,209
52,714
Adjusted amounts
$
74,795
$
0.76
$
283,725
$
2.87
Notes:
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 periods ended December 31, 2016 and September 30, 2016, where we used 98,542,000 and 98,444,000, respectively, instead of the GAAP shares of 98,064,000 and 98,061,000, respectively, as our share equivalents became dilutive based on the amount of adjusted net income.
For consistency in presentation, the difference in tax provision on income before taxes in accordance with GAAP is computed using our historical effective rate of 31.3% and the rate in effect for GAAP for the respective periods.
EBITDA and EBITDA Margins
For the Three Months Ended
For the Year Ended
Dec 31, 2016
Dec 31, 2015
Sep 30, 2016
Dec 31, 2016
Dec 31, 2015
($ in thousands)
Net Income (Loss)
$
(11,028)
$
27,505
$
(11,798)
$
24,586
$
231,011
Depreciation and Amortization
56,287
57,727
74,200
250,247
241,235
Subtotal
45,259
85,232
62,402
274,833
472,246
Interest Expense, net of Interest Income
4,915
6,183
5,641
21,418
24,443
Amortization included in Interest Expense
(285)
(280)
(287)
(1,145)
(1,077)
Provision for Income Taxes (Benefit)
2,534
12,532
(5,375)
18,760
105,250
EBITDA
$
52,423
$
103,667
$
62,381
$
313,866
$
600,862
Revenue
$
488,445
$
722,066
$
549,275
$
2,271,603
$
3,062,754
EBITDA margin %
11
%
14
%
11
%
14
%
20
%
Free Cash Flow
For the Year Ended
Dec 31, 2016
Dec 31, 2015
(in thousands)
Net Income
$
24,586
$
231,011
Depreciation and amortization
250,247
241,235
Other increases in cash from operating activities
65,689
88,162
Cash flow provided by operating activities
340,522
560,408
Purchases of property and equipment
(112,392)
(199,970)
Free Cash Flow
$
228,130
$
360,438
Adjusted Operating Income and Margins by Segment
For the Three Months Ended December 31, 2016
Remotely Operated Vehicles
Subsea Products
Subsea Projects
Asset Integrity Advanced Tech.
Unalloc. Expenses
Total
($ in thousands)
Operating income (loss) as reported in accordance with GAAP
$
4,031
$
4,068
$
2,421
$
3,197
$
1,331
$
(18,907)
$
(3,859)
Adjustments for the effects of:
Restructuring expenses
3,786
3,730
2,054
1,388
532
319
11,809
Allowance for bad debts
855
97
194
1,681
--
--
2,827
Total of adjustments
4,641
3,827
2,248
3,069
532
319
14,636
Adjusted amounts
$
8,672
$
7,895
$
4,669
$
6,266
$
1,863
$
(18,588)
$
10,777
Revenue
$
108,352
$
149,052
$
94,096
$
59,938
$
77,007
$
488,445
Operating income (loss) % as reported in accordance with GAAP
4
%
3
%
3
%
5
%
2
%
(1)
%
Operating income % using adjusted amounts
8
%
5
%
5
%
10
%
2
%
2
%
For the Three Months Ended December 31, 2015
Remotely Operated Vehicles
Subsea Products
Subsea Projects
Asset Integrity Advanced Tech.
Unalloc. Expenses
Total
($ in thousands)
Operating income as reported in accordance with GAAP
$
16,621
$
37,206
$
10,310
$
85
$
(3,233)
$
(15,233)
$
45,756
Adjustments for the effects of:
Inventory write-downs
15,705
1,260
--
--
--
--
16,965
Restructuring expenses
3,130
4,966
1,846
3,670
47
33
13,692
Non-current asset reserve
--
6,583
--
--
--
--
6,583
Allowance for bad debts
--
4,851
--
--
--
--
4,851
Fixed asset write-offs
2,911
--
--
--
--
--
2,911
Total of adjustments
21,746
17,660
1,846
3,670
47
33
45,002
Adjusted amounts
$
38,367
$
54,866
$
12,156
$
3,755
$
(3,186)
$
(15,200)
$
90,758
Revenue
$
173,424
$
258,889
$
131,397
$
83,346
$
75,010
$
722,066
Operating income (loss) % as reported in accordance with GAAP
10
%
14
%
8
%
0
%
(4)
%
6
%
Operating income (loss) % using adjusted amounts
22
%
21
%
9
%
5
%
(4)
%
13
%
Adjusted Operating Income and Margins by Segment
For the Three Months Ended September 30, 2016
Remotely Operated Vehicles
Subsea Products
Subsea Projects
Asset Integrity Advanced Tech.
Unalloc.
Total
Expenses
($ 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
%
Adjusted Operating Income and Margins by Segment
For the Year Ended December 31, 2016
Remotely Operated Vehicles
Subsea Products
Subsea Projects
Asset Integrity
Advanced Tech.
Unalloc. Expenses Total
($ in thousands)
Operating income as reported in accordance with GAAP
$
25,193
$
75,938
$
34,476
$
7,551
$
11,809
$
(84,203)
$
70,764
Adjustments for the effects of:
Inventory write-downs
25,200
5,290
--
--
--
--
30,490
Restructuring expenses
3,786
3,730
2,054
1,388
532
319
11,809
Allowance for bad debts
1,195
1,867
321
5,013
--
--
8,396
Fixed asset write-offs
10,840
2,950
--
--
--
--
13,790
Total of adjustments
41,021
13,837
2,375
6,401
532
319
64,485
Adjusted amounts
$
66,214
$
89,775
$
36,851
$
13,952
$
12,341
$
(83,884)
$
135,249
Revenue
$
522,121
$
692,030
$
472,979
$
275,397
$
309,076
$
2,271,603
Operating income % as reported in accordance with GAAP
5
%
11
%
7
%
3
%
4
%
3
%
Operating income % using adjusted amounts
13
%
13
%
8
%
5
%
4
%
6
%
For the Year Ended December 31, 2015
Remotely Operated Vehicles
Subsea Products
Subsea Projects
Asset Integrity
Advanced Tech.
Unalloc. Expenses Total
($ in thousands)
Operating income as reported in accordance with GAAP
$
192,514
$
175,585
$
92,034
$
18,235
$
9,689
$
(114,247)
$
373,810
Adjustments for the effects of:
Inventory write-downs
15,705
10,285
--
--
--
--
25,990
Restructuring expenses
7,177
8,672
2,480
6,436
220
419
25,404
Non-current asset reserve
--
6,583
--
--
--
--
6,583
Allowance for bad debts
--
4,851
--
--
--
--
4,851
Fixed asset write-offs
2,911
--
--
--
--
--
2,911
Total of adjustments
25,793
30,391
2,480
6,436
220
419
65,739
Adjusted amounts
$
218,307
$
205,976
$
94,514
$
24,671
$
9,909
$
(113,828)
$
439,549
Revenue
$
807,723
$
959,714
$
604,484
$
372,957
$
317,876
$
3,062,754
Operating income % as reported in accordance with GAAP
24
%
18
%
15
%
5
%
3
%
12
%
Operating income % using adjusted amounts
27
%
21
%
16
%
7
%
3
%
14
%
EBITDA and Adjusted EBITDA and Margins by Segment
For the Three Months Ended December 31, 2016
Remotely Operated Vehicles
Subsea Products
Subsea Projects
Asset Integrity Advanced Tech.
Unalloc. Expenses and other
Total
($ in thousands)
Operating income as reported in accordance with GAAP
$
4,031
$
4,068
$
2,421
$
3,197
$
1,331
$
(18,907)
$
(3,859)
Adjustments for the effects of:
Depreciation and amortization
29,552
13,795
8,595
2,600
791
954
56,287
Other pre-tax
--
--
--
--
--
(5)
(5)
EBITDA
33,583
17,863
11,016
5,797
2,122
(17,958)
52,423
Adjustments for the effects of:
Restructuring expenses
3,786
3,730
2,054
1,388
532
319
11,809
Allowance for bad debts
855
97
194
1,681
--
--
2,827
Foreign currency (gains) losses
--
--
--
--
--
(1,689)
(1,689)
Total of adjustments
4,641
3,827
2,248
3,069
532
(1,370)
12,947
Adjusted EBITDA
$
38,224
$
21,690
$
13,264
$
8,866
$
2,654
$
(19,328)
$
65,370
Revenue
$
108,352
$
149,052
$
94,096
$
59,938
$
77,007
$
488,445
Operating income (loss) % as reported in accordance with GAAP
4
%
3
%
3
%
5
%
2
%
(1)
%
EBITDA Margin
31
%
12
%
12
%
10
%
3
%
11
%
Adjusted EBITDA Margin
35
%
15
%
14
%
15
%
3
%
13
%
For the Three Months Ended December 31, 2015
Remotely Operated Vehicles
Subsea Products
Subsea Projects
Asset Integrity Advanced Tech.
Unalloc. Expenses and other
Total
($ in thousands)
Operating income as reported in accordance with GAAP
$
16,621
$
37,206
$
10,310
$
85
$
(3,233)
$
(15,233)
$
45,756
Adjustments for the effects of:
Depreciation and amortization
36,128
11,545
5,723
2,491
670
1,170
57,727
Other pre-tax
--
--
--
--
--
184
184
EBITDA
52,749
48,751
16,033
2,576
(2,563)
(13,879)
103,667
Adjustments for the effects of:
Inventory write-downs
15,705
1,260
--
--
--
--
16,965
Restructuring expenses
3,130
4,966
1,846
3,670
47
33
13,692
Non-current asset reserve
--
6,583
--
--
--
--
6,583
Allowance for bad debts
--
4,851
--
--
--
--
4,851
Foreign currency (gains) losses
--
--
--
--
--
938
938
Total of adjustments
18,835
17,660
1,846
3,670
47
971
43,029
Adjusted EBITDA
$
71,584
$
66,411
$
17,879
$
6,246
$
(2,516)
$
(12,908)
$
146,696
Revenue
$
173,424
$
258,889
$
131,397
$
83,346
$
75,010
$
722,066
Operating income (loss) % as reported in accordance with GAAP
10
%
14
%
8
%
0
%
(4)
%
6
%
EBITDA Margin
30
%
19
%
12
%
3
%
(3)
%
14
%
Adjusted EBITDA Margin
41
%
26
%
14
%
7
%
(3)
%
20
%
EBITDA and Adjusted EBITDA and Margins by Segment
For the Three Months Ended September 30, 2016
Remotely Operated Vehicles
Subsea Products
Subsea Projects
Asset Integrity Advanced Tech.
Unalloc. Expenses and other
Total
($ 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
Foreign currency (gains) losses
--
--
--
--
--
(643)
(643)
Total of adjustments
25,200
5,290
--
--
--
(643)
29,847
Adjusted EBITDA
$
45,060
$
25,604
$
23,604
$
10,705
$
5,146
$
(17,891)
$
92,228
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
%
EBITDA and Adjusted EBITDA and Margins by Segment
For the Year Ended December 31, 2016
Remotely Operated Vehicles
Subsea Products
Subsea Projects
Asset Integrity
Advanced Tech.
Unalloc. Expenses and other
Total
($ in thousands)
Operating income as reported in accordance with GAAP
$
25,193
$
75,938
$
34,476
$
7,551
$
11,809
$
(84,203)
$
70,764
Adjustments for the effects of:
Depreciation and amortization
140,967
53,759
34,042
14,336
3,120
4,023
250,247
Other pre-tax
--
--
--
--
--
(7,145)
(7,145)
EBITDA
166,160
129,697
68,518
21,887
14,929
(87,325)
313,866
Adjustments for the effects of:
Inventory write-downs
25,200
5,290
--
--
--
--
30,490
Restructuring expenses
3,786
3,730
2,054
1,388
532
319
11,809
Allowance for bad debts
1,195
1,867
321
5,013
--
--
8,396
Foreign currency (gains) losses
--
--
--
--
--
4,770
4,770
Total of adjustments
30,181
10,887
2,375
6,401
532
5,089
55,465
Adjusted EBITDA
$
196,341
$
140,584
$
70,893
$
28,288
$
15,461
$
(82,236)
$
369,331
Revenue
$
522,121
$
692,030
$
472,979
$
275,397
$
309,076
$
2,271,603
Operating income % as reported in accordance with GAAP
5
%
11
%
7
%
3
%
4
%
3
%
EBITDA Margin
32
%
19
%
14
%
8
%
5
%
14
%
Adjusted EBITDA Margin
38
%
20
%
15
%
10
%
5
%
16
%
For the Year Ended December 31, 2015
Remotely Operated Vehicles
Subsea Products
Subsea Projects
Asset Integrity
Advanced Tech.
Unalloc. Expenses and other
Total
($ in thousands)
Operating income as reported in accordance with GAAP
$
192,514
$
175,585
$
92,034
$
18,235
$
9,689
$
(114,247)
$
373,810
Adjustments for the effects of:
Depreciation and amortization
143,364
49,792
29,863
10,713
2,549
4,954
241,235
Other pre-tax
--
--
--
--
--
(14,183)
(14,183)
EBITDA
335,878
225,377
121,897
28,948
12,238
(123,476)
600,862
Adjustments for the effects of:
Inventory write-downs
15,705
10,285
--
--
--
--
25,990
Restructuring expenses
7,177
8,672
2,480
6,436
220
419
25,404
Non-current asset reserve
--
6,583
--
--
--
--
6,583
Allowance for bad debts
--
4,851
--
--
--
--
4,851
Foreign currency (gains) losses
--
--
--
--
--
15,360
15,360
Total of adjustments
22,882
30,391
2,480
6,436
220
15,779
78,188
Adjusted EBITDA
$
358,760
$
255,768
$
124,377
$
35,384
$
12,458
$
(107,697)
$
679,050
Revenue
$
807,723
$
959,714
$
604,484
$
372,957
$
317,876
$
3,062,754
Operating income % as reported in accordance with GAAP
24
%
18
%
15
%
5
%
3
%
12
%
EBITDA Margin
42
%
23
%
20
%
8
%
4
%
20
%
Adjusted EBITDA Margin
44
%
27
%
21
%
9
%
4
%
22
%

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/oceaneering-reports-fourth-quarter-and-full-year-2016-results-300404591.html

SOURCE Oceaneering International, Inc.

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