OII
$16.93
Oceaneering International
($.50)
(2.87%)
Earnings Details
3rd Quarter September 2018
Wednesday, October 24, 2018 5:01:00 PM
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Summary

Oceaneering Guides to Low-end of EBITDA Range

Oceaneering International (OII) reported a 3rd Quarter September 2018 loss of $0.14 per share on revenue of $519.3 million. The consensus estimate was a loss of $0.16 per share on revenue of $493.5 million. Revenue grew 9.1% on a year-over-year basis.

The company said it now expects Adjusted EBITDA to be in the lower-half of its previous guidance range of $140.0 million to $160.0 million for the year ending December 31, 2018.

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
($0.14)
Earnings Whisper
-
Consensus Estimate
($0.16)
Reported Revenue
$519.3 Mil
Revenue Estimate
$493.5 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Oceaneering Reports Third Quarter 2018 Results

HOUSTON, Oct. 24, 2018 /PRNewswire/ -- Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today reported a net loss of $66.0 million, or $(0.67) per share, on revenue of $519 million for the three months ended September 30, 2018.  Adjusted net loss was $13.9 million, or $(0.14) per share, excluding the impact of $56.5 million of certain tax adjustments, the after-tax effects of a $9.3 million gain realized on the sale of a minority interest investment, and $3.7 million of foreign currency exchange losses.

During the prior quarter ended June 30, 2018, Oceaneering reported a net loss of $33.1 million, or $(0.34) per share, on revenue of $479 million, and an adjusted net loss of $23.0 million, or $(0.23) per share.

Adjusted operating income (loss) and margins, adjusted net income (loss) and diluted earnings (loss) per share, EBITDA and adjusted EBITDA (as well as EBITDA and adjusted EBITDA margins and forecasted 2018 EBITDA) and free cash flow are non-GAAP measures that exclude the impacts of certain identified items.  Reconciliations to the corresponding GAAP measures are shown in the tables Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share, EBITDA and EBITDA Margins, 2018 EBITDA Estimates, Free Cash Flow, Adjusted Operating Income (Loss) 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


Nine Months Ended



Sep 30,


Jun 30,


Sep 30,










2018


2017


2018


2018


2017












Revenue


$

519,300



$

476,120



$

478,674



$

1,414,387



$

1,437,332


Gross Margin


47,635



54,885



29,728



96,191



153,311


Income (Loss) from Operations


(1,552)



10,531



(19,637)



(48,338)



19,771


Net Income (Loss)


(65,979)



(1,768)



(33,076)



(148,188)



(7,170)













Diluted Earnings (Loss) Per Share


$

(0.67)



$

(0.02)



$

(0.34)



$

(1.50)



$

(0.07)







Roderick A. Larson, President and Chief Executive Officer of Oceaneering, stated, "Our consolidated third quarter 2018 operating results met our expectations.  However, from a segment perspective, these results were not achieved in the manner we initially anticipated.

"Compared to our adjusted second quarter 2018 results, operating results for the third quarter 2018 improved by $10.4 million, mainly due to favorable profit contributions from Subsea Projects and Subsea Products, and lower Unallocated expenses, partially offset by lower profitability in our Remotely Operated Vehicle (ROV) segment.

"We are pleased that each of our operating segments was profitable and on a consolidated basis we generated adjusted EBITDA of $47.2 million.  Our cash position increased to $367 million as of September 30, 2018.

"Operationally, for the third quarter 2018, ROV days on hire increased 4% as our fleet utilization improved to 56% from 54% in the second quarter.  Average ROV revenue per day on hire was lower, as expected, and declined 6% sequentially, as we experienced a geographic shift in activity to lower day rate operating areas, notably Europe and Brazil.  Operating income declined more than expected due to operational inefficiencies associated with the reactivation of equipment and crews.  Consequently, ROV EBITDA margin declined to 27%, from the approximately 30% that was expected.

"Our fleet use mix during the quarter was 59% in drill support and 41% in vessel-based activity, compared to 62% and 38% for the prior quarter.  At the end of September, we had ROVs on 91, or 61%, of the 150 floating rigs under contract.  At the end of June 30, 2018, we had ROVs on 92, or 60%, of the 154 floating rigs.  At the end of September 2018, our fleet size remained at 279 vehicles.

"Subsea Product's operating income during the third quarter 2018 was better than expected, on a 13% increase in quarterly revenues.  The improved operating results were due to increased throughput in our manufactured products businesses.  Our Subsea Products backlog at September 30, 2018 was $333 million, compared to our June 30, 2018 backlog of $245 million.  The backlog improvement was largely attributable to an increase in order intake for our service and rental business offerings.  Our book-to-bill ratio year-to-date was 1.2 and the past twelve months has been 1.1.

"Sequentially, Subsea Projects achieved a return to profitability, as expected, and generated $6.1 million of operating income during the third quarter 2018, on a 35% increase in quarterly revenues.  These results were mainly driven by higher levels of seasonal utilization and pricing in the U.S. Gulf of Mexico deepwater vessel and diving services, and an increase in survey services.  Ecosse results were lower than projected due to equipment modifications and field trials that delayed execution.  Asset Integrity operating income was down, due to delays in anticipated project awards by customers.

"For our non-energy segment, Advanced Technologies, third quarter 2018 operating income was slightly better than expected, due to increased project throughput in our commercial theme park unit.  Unallocated Expenses for the third quarter 2018 were lower than the second quarter 2018 as performance-based compensation expenses were reduced based on our expected level of results relative to the respective plan targets.

"Our third quarter 2018 tax provision of $61.1 million included $56.5 million of discrete tax items.  The largest discrete item of $39.1 million related to valuation allowances recorded for certain tax benefits recognized in prior years that may not be realizable in certain foreign jurisdictions.  Other discrete items included: $7.9 million to reflect recently issued proposed regulations relating to the U.S. tax reform legislation adopted in December 2017; $3.6 million related to uncertain tax positions; and $5.9 million associated with various other issues.  We expect the above tax provision for discrete items will have minimal cash tax implications for the foreseeable future.  During the nine months ended September 30, 2018, our cash taxes paid totaled $25.8 million as compared to the $30.0 million paid during the same period of 2017.

"Looking forward, we believe our fourth quarter 2018 results will be lower than our adjusted third quarter results due to the onset of seasonality leading to reduced levels of offshore energy activity.  Sequentially, we expect lower operating income from each of our energy segments, with most of the decline expected to be in Subsea Products and Subsea Projects segments.  Additionally, in our Subsea Products segment we are expecting an unfavorable impact at our manufacturing facility in Panama City, Florida due to damage caused by Hurricane Michael in mid-October 2018.  For our non-energy segment, Advanced Technologies, we are projecting a quarterly improvement in operating income.  Unallocated Expenses are expected to be in the upper-$20 million range.

"For the full year of 2018, we currently expect our adjusted EBITDA to be in the lower half of the guidance range of $140 million to $160 million.  And, we continue to expect each of our operating segments will contribute positive EBITDA.

"We are encouraged that the long-term fundamentals for the offshore energy industry have stabilized and we believe we are now in the early stages of a recovery in activity in general, and in our businesses.  We expect a recovery will take time, and only after a sustained higher level of activity can prices for our services and products be increased enough to generate satisfactory returns.

"Accordingly, looking into 2019, we are projecting increased activity levels in each of our segments, likely led by revenue gains in our Subsea Products manufacturing business unit.  However, the pace of recovery is still difficult to determine, and at this time we are not prepared to offer more detailed guidance on 2019."

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 Oceaneering. More specifically, the forward-looking statements in this press release include the statements concerning Oceaneering's: overall view of the markets; backlog; expectation that the tax provision for discrete items will have minimal cash tax implications for the foreseeable future; outlook and EBITDA guidance for the fourth quarter and full year of 2018; expected fourth quarter Unallocated Expenses; expected contributions of its segments to fourth quarter and 2018 operating results; outlook for the full year of 2018; anticipated adjusted EBITDA and EBITDA contributions from each of its segments; statements about long-term industry fundamentals and recovery; statement about a sustained higher level of activity being required before prices for our services and products can be increased enough to generate satisfactory returns; and outlook for 2019 and expectations for increased activity levels in each of its segments.  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: 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; future global economic conditions; the loss of major contracts or alliances; future performance under our customer contracts; and the effects of competition. For a more complete discussion of these and other risk factors, please see Oceaneering's latest annual report on Form 10-K and subsequent 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 energy industry.  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, 2018


Dec 31, 2017














(in thousands)

ASSETS

















Current Assets (including cash and cash equivalents of $367,150 and $430,316)

$

1,189,836



$

1,187,402



Net Property and Equipment







993,514



1,064,204



Other Assets










740,349



772,344





TOTAL ASSETS






$

2,923,699



$

3,023,950




















LIABILITIES AND EQUITY






Current Liabilities










$

476,314



$

435,797



Long-term Debt










782,190



792,312



Other Long-term Liabilities






163,722



131,323



Equity










1,501,473



1,664,518





TOTAL LIABILITIES AND EQUITY




$

2,923,699



$

3,023,950




















CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS




























For the Three Months Ended


For the Nine Months Ended










Sep 30, 2018


Sep 30, 2017


Jun 30, 2018


Sep 30, 2018


Sep 30, 2017










(in thousands, except per share amounts)




















Revenue






$

519,300



$

476,120



$

478,674



$

1,414,387



$

1,437,332



Cost of services and products


471,665



421,235



448,946



1,318,196



1,284,021




Gross Margin


47,635



54,885



29,728



96,191



153,311



Selling, general and administrative expense


49,187



44,354



49,365



144,529



133,540




Income (loss) from Operations




(1,552)



10,531



(19,637)



(48,338)



19,771



Interest income






2,645



1,997



2,950



8,187



5,379



Interest expense






(9,885)



(8,650)



(8,802)



(28,058)



(22,517)



Equity losses of unconsolidated affiliates


(1,684)



(424)



(737)



(3,264)



(1,798)



Other income (expense), net


5,632



(1,287)



(3,556)



(6,398)



(3,901)




Income (loss) before Income Taxes


(4,844)



2,167



(29,782)



(77,871)



(3,066)



Provision (benefit) for income taxes


61,135



3,935



3,294



70,317



4,104




Net Income (Loss)


$

(65,979)



$

(1,768)



$

(33,076)



$

(148,188)



$

(7,170)




















Weighted average diluted shares outstanding


98,533



98,270



98,531



98,483



98,224


Diluted Earnings (Loss) per Share


$

(0.67)



$

(0.02)



$

(0.34)



$

(1.50)



$

(0.07)




















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, 2018


Sep 30, 2017


Jun 30, 2018


Sep 30, 2018


Sep 30, 2017







($ in thousands)












Remotely Operated Vehicles


Revenue



$

105,045



$

104,617



$

107,426



$

298,065



$

302,071



Gross Margin



$

8,757



$

12,102



$

12,176



$

25,888



$

41,783


Operating Income



$

772



$

5,009



$

4,542



$

2,916



$

21,310


Operating Income %



1

%


5

%


4

%


1

%


7

%


Days available



25,668



25,695



25,386



76,192



76,214



Days utilized



14,249



12,742



13,654



38,937



36,497



Utilization



56

%


50

%


54

%


51

%


48

%
















Subsea Products


Revenue



$

137,099



$

143,583



$

121,704



$

385,491



$

469,115



Gross Margin



$

18,748



$

24,949



$

16,075



$

49,828



$

72,702


Operating Income



$

5,367



$

12,383



$

2,295



$

9,417



$

34,418


Operating Income %



4

%


9

%


2

%


2

%


7

%

Backlog at end of period



$

333,000



$

284,000



$

245,000



$

333,000



$

284,000

















Subsea Projects


Revenue



$

104,972



$

80,116



$

78,036



$

239,868



$

218,617



Gross Margin



$

10,829



$

10,187



$

(5,145)



$

6,801



$

20,673


Operating Income (Loss)



$

6,088



$

6,512



$

(10,358)



$

(6,629)



$

9,699


Operating Income (Loss) %



6

%


8

%


(13)

%


(3)

%


4

%
















Asset Integrity


Revenue



$

62,346



$

61,098



$

67,422



$

191,056



$

171,948



Gross Margin



$

9,430



$

9,754



$

9,461



$

26,909



$

28,139


Operating Income



$

2,275



$

3,050



$

3,357



$

7,311



$

9,072


Operating Income %



4

%


5

%


5

%


4

%


5

%
















Advanced Technologies


Revenue



$

109,838



$

86,706



$

104,086



$

299,907



$

275,581



Gross Margin



$

14,824



$

11,833



$

13,999



$

36,645



$

36,038


Operating Income



$

8,960



$

6,602



$

7,886



$

18,514



$

19,260


Operating Income %



8

%


8

%


8

%


6

%


7

%















Unallocated Expenses














Gross Margin



$

(14,953)



$

(13,940)



$

(16,838)



$

(49,880)



$

(46,024)


Operating Expense



$

(25,014)



$

(23,025)



$

(27,359)



$

(79,867)



$

(73,988)















TOTAL



Revenue



$

519,300



$

476,120



$

478,674



$

1,414,387



$

1,437,332



Gross Margin



$

47,635



$

54,885



$

29,728



$

96,191



$

153,311


Operating Income (Loss)



$

(1,552)



$

10,531



$

(19,637)



$

(48,338)



$

19,771


Operating Income (Loss) %



%


2

%


(4)

%


(3)

%


1

%
















 

SELECTED CASH FLOW INFORMATION


















For the Three Months Ended


For the Nine Months Ended







Sep 30, 2018


Sep 30, 2017


Jun 30, 2018


Sep 30, 2018


Sep 30, 2017







(in thousands)













Capital expenditures, including acquisitions



$

30,389



$

29,878



$

27,798



$

152,317



$

71,178














Depreciation and Amortization:












Energy Services and Products













Remotely Operated Vehicles



$

27,428



$

28,269



$

28,269



$

83,339



$

86,534



Subsea Products



12,349



13,340



14,914



41,288



39,124



Subsea Projects



7,464



7,881



13,053



28,830



23,742



Asset Integrity



1,635



2,139



1,836



5,319



5,379


Total Energy Services and Products



48,876



51,629



58,072



158,776



154,779


Advanced Technologies



792



796



737



2,295



2,377


Unallocated Expenses



1,035



1,088



1,034



3,603



3,324


Total Depreciation and Amortization



$

50,703



$

53,513



$

59,843



$

164,674



$

160,480

















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 Margin, 2018 Adjusted EBITDA Estimates and Free Cash Flow, as well as the following by segment:  Adjusted Operating Income and Margin, EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin.  We define EBITDA Margin as EBITDA divided by revenue.  Adjusted EBITDA and Adjusted EBITDA Margin 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 Margin, Adjusted EBITDA and Adjusted EBITDA Margin, 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 Margin 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 Margin 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

















Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share






















For the Three Months Ended






Sep 30, 2018

Sep 30, 2017

Jun 30, 2018






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


$

(65,979)



$

(0.67)



$

(1,768)



$

(0.02)



$

(33,076)



$

(0.34)


Pre-tax adjustments for the effects of:














Charge related to prior year non-income related taxes






1,500









Property & equipment write-offs










4,233





Intangible asset write-offs










3,458





Gain on sale of investment


(9,293)













Foreign currency losses


3,745





1,273





3,418




Total pre-tax adjustments


(5,548)





2,773





11,109




















Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods


1,165





(971)





(2,173)




Discrete tax adjustments:














Uncertain tax positions


3,571





1,419





1,358





Tax reform


7,932













Valuation allowances


39,136













Other


5,853





994





(178)




Total discrete tax adjustments


56,492





2,413





1,180




Difference in tax provision on income before taxes in accordance with GAAP (1)






763






















Total of adjustments


52,109





4,978





10,116




Adjusted Net Income (Loss) and Adjusted Diluted EPS


$

(13,870)



$

(0.14)



$

3,210



$

0.03



$

(22,960)



$

(0.23)


















Weighted average diluted shares outstanding utilized for Adjusted Diluted EPS




98,533





98,797





98,531




















For the Nine Months Ended



Sep 30, 2018

Sep 30, 2017



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


$

(148,188)



$

(1.50)



$

(7,170)



$

(0.07)


Pre-tax adjustments for the effects of:










Charge related to prior year non-income related taxes






1,500





Property & equipment write-offs


4,233









Intangible asset write-offs


3,458









Gain on sale of investment


(9,293)









Foreign currency losses


15,478





3,406




Total pre-tax adjustments






13,876





4,906




















Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods


(2,754)





(1,718)




















Discrete tax adjustments:










Share-based compensation


1,820





2,900





Uncertain tax positions


4,833





195





Tax reform


7,932









Valuation allowances


39,136









Other


6,351





1,424




Total discrete tax adjustments


60,072





4,519




Difference in tax provision on income before taxes in accordance with GAAP (1)






658





Total of adjustments






71,194





8,365




Adjusted Net Income (Loss) and Adjusted Diluted EPS


$

(76,994)



$

(0.78)



$

1,195



$

0.01















Weighted average diluted shares outstanding utilized for Adjusted Diluted EPS




98,483





98,735


















Notes:

(1)

For consistency in presentation, the difference in tax provision on income before taxes is computed using the U.S. statutory rate of 35% for 2017, in determining Adjusted Net Income (Loss) for the respective periods.  This is not calculated for the three months and nine months ended September 30, 2018, and three months ended June 30, 2018 due to changes in U.S. tax law.

 

EBITDA and EBITDA Margins
























For the Three Months Ended


For the Nine Months Ended








Sep 30, 2018


Sep 30, 2017


Jun 30, 2018


Sep 30, 2018


Sep 30, 2017








($ in thousands)

















Net Income (Loss)




$

(65,979)



$

(1,768)



$

(33,076)



$

(148,188)



$

(7,170)


Depreciation and Amortization




50,703



53,513



59,843



164,674



160,480



Subtotal




(15,276)



51,745



26,767



16,486



153,310


Interest Expense, net of Interest Income


7,240



6,653



5,852



19,871



17,138


Amortization included in Interest Expense


(332)



(283)



(333)



(1,439)



(849)


Provision (Benefit) for Income Taxes




61,135



3,935



3,294



70,317



4,104



EBITDA




$

52,767



$

62,050



$

35,580



$

105,235



$

173,703


















Revenue




$

519,300



$

476,120



$

478,674



$

1,414,387



$

1,437,332


















EBITDA Margin




10

%


13

%


7

%


7

%


12

%

















 

2018 Adjusted EBITDA Estimates























Low


High











(in thousands)


Loss before income taxes, as adjusted







$

(95,000)



(75,000)



Depreciation and amortization, as adjusted







208,000



208,000





Subtotal







113,000



133,000



Interest expense, net of interest income







27,000



27,000





Adjusted EBITDA







$

140,000



$

160,000





























Free Cash Flow






















For the Nine Months Ended











Sep 30, 2018


Sep 30, 2017









(in thousands)


Net Loss







$

(148,188)



$

(7,170)



Depreciation and amortization







164,674



160,480



Other increases (decreases) in cash from operating activities







19,170



(9,296)



Cash flow provided by operating activities







35,656



144,014



Purchases of property and equipment







(83,919)



(59,900)



Free Cash Flow







$

(48,263)



$

84,114



 

Adjusted Operating Income (Loss) and Margins by Segment






For the Three Months Ended September 30, 2018





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


$

772



$

5,367



$

6,088



$

2,275



$

8,960



$

(25,014)



$

(1,552)



















Adjusted operating income (loss)


$

772



$

5,367



$

6,088



$

2,275



$

8,960



$

(25,014)



$

(1,552)



















Revenue


$

105,045



$

137,099



$

104,972



$

62,346



$

109,838





$

519,300


Operating income (loss) % as reported in accordance with GAAP


1

%


4

%


6

%


4

%


8

%




%

Operating income (loss) % using adjusted amounts


1

%


4

%


6

%


4

%


8

%




%







































For the Three Months Ended September 30, 2017





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


$

5,009



$

12,383



$

6,512



$

3,050



$

6,602



$

(23,025)



$

10,531


Adjustments for the effects of:















Charge related to prior year non-income related taxes


1,275



225











1,500




Total of adjustments


1,275



225











1,500


Adjusted operating income (loss)


$

6,284



$

12,608



$

6,512



$

3,050



$

6,602



$

(23,025)



$

12,031



















Revenue


$

104,617



$

143,583



$

80,116



$

61,098



$

86,706





$

476,120


Operating income % as reported in accordance with GAAP


5

%


9

%


8

%


5

%


8

%




2

%

Operating income % using adjusted amounts


6

%


9

%


8

%


5

%


8

%




3

%


 

Adjusted Operating Income (Loss) and Margins by Segment























For the Three Months Ended June 30, 2018





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


$

4,542



$

2,295



$

(10,358)



$

3,357



$

7,886



$

(27,359)



$

(19,637)


Adjustments for the effects of:
















Property & equipment write-offs


617



1,531



2,085









4,233



Intangible asset write-offs






3,458









3,458




Total of adjustments


617



1,531



5,543









7,691


Adjusted operating income (loss)


$

5,159



$

3,826



$

(4,815)



$

3,357



$

7,886



$

(27,359)



$

(11,946)



















Revenue


$

107,426



$

121,704



$

78,036



$

67,422



$

104,086





$

478,674


Operating income (loss) % as reported in accordance with GAAP


4

%


2

%


(13)

%


5

%


8

%




(4)

%

Operating income (loss) % using adjusted amounts


5

%


3

%


(6)

%


5

%


8

%




(2)

%


 

Adjusted Operating Income (Loss) and Margins by Segment






For the Nine Months Ended September 30, 2018





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


$

2,916



$

9,417



$

(6,629)



$

7,311



$

18,514



$

(79,867)



$

(48,338)


Adjustments for the effects of:















Property & equipment write-offs


617



1,531



2,085









4,233



Intangible asset write-offs






3,458









3,458




Total of adjustments


617



1,531



5,543









7,691


Adjusted operating income (loss)


$

3,533



$

10,948



$

(1,086)



$

7,311



$

18,514



$

(79,867)



$

(40,647)



















Revenue


$

298,065



$

385,491



$

239,868



$

191,056



$

299,907





$

1,414,387


Operating income (loss) % as reported in accordance with GAAP


1

%


2

%


(3)

%


4

%


6

%




(3)

%

Operating income (loss) % using adjusted amounts


1

%


3

%


%


4

%


6

%




(3)

%






















For the Nine Months Ended September 30, 2017





Remotely
Operated
Vehicles


Subsea
Products


Subsea
Projects


Asset
Integrity


Advanced
Tech.


Unalloc.

Expenses


Total





($ in thousands)

Operating income as reported in accordance with GAAP


$

21,310



$

34,418



$

9,699



$

9,072



$

19,260



$

(73,988)



$

19,771


Adjustments for the effects of:















Charge related to prior year non-income related taxes


1,275



225











1,500




Total of adjustments


1,275



225











1,500


Adjusted operating income (loss)


$

22,585



$

34,643



$

9,699



$

9,072



$

19,260



$

(73,988)



$

21,271



















Revenue


$

302,071



$

469,115



$

218,617



$

171,948



$

275,581





$

1,437,332


Operating income % as reported in accordance with GAAP


7

%


7

%


4

%


5

%


7

%




1

%

Operating income % using adjusted amounts


7

%


7

%


4

%


5

%


7

%




1

%


 

EBITDA and Adjusted EBITDA and Margins by Segment






For the Three Months Ended September 30, 2018





Remotely
Operated
Vehicles


Subsea
Products


Subsea
Projects


Asset
Integrity


Advanced
Tech.


Unalloc. Expenses
and other


Total





($ in thousands)

Operating income (loss) as reported in accordance with GAAP


$

772



$

5,367



$

6,088



$

2,275



$

8,960



$

(25,014)



$

(1,552)


Adjustments for the effects of:















Depreciation and amortization


27,428



12,349



7,464



1,635



792



1,035



50,703



Other pre-tax












3,616



3,616



EBITDA


28,200



17,716



13,552



3,910



9,752



(20,363)



52,767


Adjustments for the effects of:















Gain on sale of investment












(9,293)



(9,293)



Foreign currency losses












3,745



3,745




Total of adjustments












(5,548)



(5,548)


Adjusted EBITDA


$

28,200



$

17,716



$

13,552



$

3,910



$

9,752



$

(25,911)



$

47,219



















Revenue


$

105,045



$

137,099



$

104,972



$

62,346



$

109,838





$

519,300


Operating income % as reported in accordance with GAAP


1

%


4

%


6

%


4

%


8

%




%

EBITDA Margin


27

%


13

%


13

%


6

%


9

%




10

%

Adjusted EBITDA Margin


27

%


13

%


13

%


6

%


9

%




9

%






















For the Three Months Ended September 30, 2017





Remotely
Operated
Vehicles


Subsea
Products


Subsea
Projects


Asset
Integrity


Advanced
Tech.


Unalloc. Expenses
and other


Total





($ in thousands)

Operating income (loss) as reported in accordance with GAAP


$

5,009



$

12,383



$

6,512



$

3,050



$

6,602



$

(23,025)



$

10,531


Adjustments for the effects of:















Depreciation and amortization


28,269



13,340



7,881



2,139



796



1,088



53,513



Other pre-tax












(1,994)



(1,994)



EBITDA


33,278



25,723



14,393



5,189



7,398



(23,931)



62,050


Adjustments for the effects of:















Charge related to prior year non-income related taxes


1,275



225











1,500



Foreign currency losses












1,273



1,273




Total of adjustments


1,275



225









1,273



2,773


Adjusted EBITDA


$

34,553



$

25,948



$

14,393



$

5,189



$

7,398



$

(22,658)



$

64,823



















Revenue


$

104,617



$

143,583



$

80,116



$

61,098



$

86,706





$

476,120


Operating income % as reported in accordance with GAAP


5

%


9

%


8

%


5

%


8

%




2

%

EBITDA Margin


32

%


18

%


18

%


8

%


9

%




13

%

Adjusted EBITDA Margin


33

%


18

%


18

%


8

%


9

%




14

%

 

EBITDA and Adjusted EBITDA and Margins by Segment






For the Three Months Ended June 30, 2018





Remotely
Operated
Vehicles


Subsea
Products


Subsea
Projects


Asset
Integrity


Advanced
Tech.


Unalloc.
Expenses
and other


Total





($ in thousands)

Operating income (loss) as reported in accordance with GAAP


$

4,542



$

2,295



$

(10,358)



$

3,357



$

7,886



$

(27,359)



$

(19,637)


Adjustments for the effects of:















Depreciation and amortization


28,269



14,914



13,053



1,836



737



1,034



59,843



Other pre-tax












(4,626)



(4,626)



EBITDA


32,811



17,209



2,695



5,193



8,623



(30,951)



35,580


Adjustments for the effects of:















Foreign currency losses












3,418



3,418
















3,418



3,418


Adjusted EBITDA


$

32,811



$

17,209



$

2,695



$

5,193



$

8,623



$

(27,533)



$

38,998



















Revenue


$

107,426



$

121,704



$

78,036



$

67,422



$

104,086





$

478,674


Operating income (loss) % as reported in accordance with GAAP


4

%


2

%


(13)

%


5

%


8

%




(4)

%

EBITDA Margin


31

%


14

%


3

%


8

%


8

%




7

%

Adjusted EBITDA Margin


31

%


14

%


3

%


8

%


8

%




8

%


















 

EBITDA and Adjusted EBITDA and Margins by Segment






For the Nine Months Ended September 30, 2018





Remotely
Operated
Vehicles


Subsea
Products


Subsea
Projects


Asset
Integrity


Advanced
Tech.


Unalloc.
Expenses
and other


Total





($ in thousands)

Operating income (loss) as reported in accordance with GAAP


$

2,916



$

9,417



$

(6,629)



$

7,311



$

18,514



$

(79,867)



$

(48,338)


Adjustments for the effects of:















Depreciation and amortization


83,339



41,288



28,830



5,319



2,295



3,603



164,674



Other pre-tax












(11,101)



(11,101)



EBITDA


86,255



50,705



22,201



12,630



20,809



(87,365)



105,235


Adjustments for the effects of:















Gain on sale of investment












(9,293)



(9,293)



Foreign currency losses












15,478



15,478




Total of adjustments












6,185



6,185


Adjusted EBITDA


$

86,255



$

50,705



$

22,201



$

12,630



$

20,809



$

(81,180)



$

111,420



















Revenue


$

298,065



$

385,491



$

239,868



$

191,056



$

299,907





$

1,414,387


Operating income (loss) % as reported in accordance with GAAP


1

%


2

%


(3)

%


4

%


6

%




(3)

%

EBITDA Margin


29

%


13

%


9

%


7

%


7

%




7

%

Adjusted EBITDA Margin


29

%


13

%


9

%


7

%


7

%




8

%






















For the Nine Months Ended September 30, 2017





Remotely
Operated
Vehicles


Subsea
Products


Subsea
Projects


Asset
Integrity


Advanced
Tech.


Unalloc.
Expenses
and other


Total





($ in thousands)

Operating income (loss) as reported in accordance with GAAP


$

21,310



$

34,418



$

9,699



$

9,072



$

19,260



$

(73,988)



$

19,771


Adjustments for the effects of:















Depreciation and amortization


86,534



39,124



23,742



5,379



2,377



3,324



160,480



Other pre-tax












(6,548)



(6,548)



EBITDA


107,844



73,542



33,441



14,451



21,637



(77,212)



173,703


Adjustments for the effects of:















Charge related to prior year non-income related taxes


1,275



225











1,500



Foreign currency losses












3,406



3,406




Total of adjustments


1,275



225









3,406



4,906


Adjusted EBITDA


$

109,119



$

73,767



$

33,441



$

14,451



$

21,637



$

(73,806)



$

178,609



















Revenue


$

302,071



$

469,115



$

218,617



$

171,948



$

275,581





$

1,437,332


Operating income % as reported in accordance with GAAP


7

%


7

%


4

%


5

%


7

%




1

%

EBITDA Margin


36

%


16

%


15

%


8

%


8

%




12

%

Adjusted EBITDA Margin


36

%


16

%


15

%


8

%


8

%




12

%

 

Cision View original content:http://www.prnewswire.com/news-releases/oceaneering-reports-third-quarter-2018-results-300737389.html

SOURCE Oceaneering International, Inc.