OII
$7.30
Oceaneering International
($.33)
(4.33%)
Earnings Details
2nd Quarter June 2022
Wednesday, July 27, 2022 5:01:00 PM
Tweet Share Watch
Summary

Oceaneering Lowers Guidance

Oceaneering International (OII) reported 2nd Quarter June 2022 earnings of $0.07 per share on revenue of $524.0 million. The consensus earnings estimate was $0.14 per share on revenue of $518.8 million. Revenue grew 5.2% on a year-over-year basis.

The company said it now expects 2022 Adjusted EBITDA of $210.0 million to $240.0 million. The company's previous guidance was Adjusted EBITDA of $225.0 million to $275.0 million for the year ending December 31, 2022.

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
$0.07
Earnings Whisper
-
Consensus Estimate
$0.14
Reported Revenue
$524.0 Mil
Revenue Estimate
$518.8 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Oceaneering Reports Second Quarter 2022 Results

HOUSTON--(BUSINESS WIRE)--Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today reported net income of $3.7 million, or $0.04 per share, on revenue of $524 million for the three months ended June 30, 2022. Adjusted net income was $7.4 million, or $0.07 per share, reflecting the impact of $0.9 million of pre-tax adjustments associated with foreign exchange gains recognized during the quarter and $4.5 million of discrete tax adjustments, primarily due to changes in valuation allowances.

During the prior quarter ended March 31, 2022, Oceaneering reported net loss of $19.2 million, or $(0.19) per share, on revenue of $446 million. Adjusted net loss was $6.4 million, or $(0.06) per share, reflecting the impact of $0.4 million of pre-tax adjustments associated with foreign exchange gains recognized during the quarter and $13.1 million of discrete tax adjustments, primarily due to changes in valuation allowances.

Adjusted operating income (loss), operating margins, net income (loss) and earnings (loss) per share, EBITDA and adjusted EBITDA (as well as EBITDA and adjusted EBITDA margins), 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 (EPS), EBITDA and Adjusted EBITDA and Margins, Free Cash Flow, 2022 Adjusted EBITDA and Free Cash Flow Estimates, 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

 

Jun 30,

 

Mar 31,

 

Jun 30,

 

 

 

 

 

 

 

 

 

 

 

2022

 

2021

 

2022

 

2022

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$ 524,031

 

$ 498,199

 

$ 446,159

 

$ 970,190

 

$ 935,752

 

Gross Margin

 

76,041

 

68,397

 

45,480

 

121,521

 

125,054

 

Income (Loss) from Operations

 

22,850

 

22,819

 

(1,039)

 

21,811

 

36,602

 

Net Income (Loss)

 

3,720

 

6,241

 

(19,210)

 

(15,490)

 

(3,124)

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings (Loss) Per Share

 

$ 0.04

 

$ 0.06

 

$ (0.19)

 

$ (0.15)

 

$ (0.03)

 

 

 

 

 

 

 

For the second quarter of 2022:

  • Offshore activity is recovering with our Subsea Robotics and Offshore Projects Group operating segments recording their highest levels of operating income since the beginning of 2018 (the earliest period restated to reflect our 2020 segment realignment);
  • Consolidated Adjusted EBITDA was $53.5 million;
  • Consolidated Operating Income was $22.9 million; and
  • Cash position decreased by $69.6 million, from $438 million to $368 million.

As of June 30, 2022:

  • Remotely Operated Vehicles (ROV) fleet count was 250, Q2 utilization was 64%, and Q2 average revenue per day on hire was $8,278; and
  • Manufactured Products backlog was $335 million.

Revised guidance for 2022:

  • Consolidated Adjusted EBITDA is forecast in the range of $210 million to $240 million; and
  • Free cash flow generation is forecast in the range of $25 million to $75 million.

Roderick A. Larson, President and Chief Executive Officer of Oceaneering, stated, "I am pleased to confirm that the resurgence of offshore activity we anticipated to start in the second quarter of 2022 is materializing and beginning to be reflected in our results. Specifically, our Subsea Robotics (SSR) and Offshore Project Group (OPG) segments generated some of the highest levels of revenue and the highest operating incomes seen since the beginning of 2018, the earliest period restated to reflect our 2020 segment realignment. Our first half 2022 financial performance unfolded slightly below our expectations due to challenges in hiring offshore personnel, primarily in the Gulf of Mexico (GoM), resulting in some delayed projects and missed opportunities. In addition, the Continuing Resolution earlier in the year continues to negatively impact revenue mix and timing in our Aerospace and Defense Technologies (ADTech) segment. We see strong market dynamics supporting robust activity in our offshore markets during the second half of 2022 to be partially muted by timing uncertainties within our ADTech segment. Given our first half results and latest expectations for the second half of 2022, we are updating our adjusted EBITDA guidance range to $210 million to $240 million for the full year.

“Our second quarter 2022 results increased significantly compared to the first quarter of 2022, as we produced adjusted EBITDA of $53.5 million, which was within the guidance range provided at the beginning of the quarter. The resurgence in seasonal offshore demand led to significantly increased results from our SSR and OPG segments, which was only partially offset by the lower results from our Manufactured Products and ADTech segments. During the quarter, our cash balance declined by $69.6 million, largely due to an increase in receivables. We are concerned to see our customers extending payment terms and are actively working with them to improve this situation. We continue to expect positive free cash flow generation for 2022 but are revising our guidance range to $25 million to $75 million for the full year.

Segment Results

“Sequentially, SSR revenue and operating income both increased significantly as expected, with healthy levels of seasonal activity for ROV, survey, and tooling services. SSR EBITDA margin of 28% improved as compared to the first quarter of 2022, with the increased activity aligning with the additional costs incurred during the first quarter. We also started to realize recent pricing improvements.

"Second quarter 2022 ROV days on hire were sequentially higher for both drill support and vessel-based services. Fleet utilization rose significantly, averaging 64% for the quarter as compared to 53% during the first quarter. Our fleet use was 57% for the quarter in drill support and 43% in vessel-based activity as compared to 63% and 37%, respectively, during the first quarter. Average ROV revenue per day on hire of $8,278 for the quarter was 1% higher than the first quarter of 2022.

"Manufactured Products had a second quarter 2022 operating loss of $1.4 million on higher revenue compared to the first quarter of 2022. Revenue increased primarily due to the receipt of certain umbilical materials that did not contribute to current quarter manufacturing activity. Operating results sequentially declined due primarily to less profitable work being executed in our mobility solutions businesses. Our Manufactured Products backlog on June 30, 2022 remained flat at $335 million, compared to our March 31, 2022 backlog of $334 million. Our book-to-bill ratio was 1.1 for the six months ended June 30, 2022 and 1.25 for the trailing 12 months.

"Second quarter 2022 OPG revenue and operating income increased significantly compared to the first quarter of 2022, primarily as a result of increased inspection, maintenance and repair (IMR) and installation work in the GoM. The sequential operating income margin increase, from 1% in the first quarter of 2022 to 15% in the second quarter of 2022, reflected increased demand and significantly improved pricing for vessel-based services in the GoM.

"Integrity Management and Digital Solutions (IMDS) sequential operating income was essentially flat on a 5% increase in revenue. Higher seasonal activity contributed to the revenue increase. Operating income margin of 6% was the same as recorded for the first quarter of 2022.

"ADTech second quarter 2022 operating income declined from the first quarter of 2022 on a 5% increase in revenue. Operating income margin of 10% declined more than expected from the 15% margin achieved in the first quarter of 2022, due to changes in revenue mix and delays in certain projects where we incurred pre-contract costs. At the corporate level for the second quarter of 2022, Unallocated Expenses of $31.7 million were relatively flat as compared to the first quarter of 2022.

Third Quarter Outlook

"For the third quarter, compared to the second quarter, we anticipate increased revenue and operating results in our SSR and OPG segments on continuing high levels of offshore activity. Operating income margin for Manufactured Products is projected to recover to the low-single digit range on a modest decrease in revenue. IMDS revenue is forecast to increase modestly with a slight improvement in operating income margin. We expect relatively flat operating income for ADTech on a slight improvement in revenue. Unallocated Expenses are forecast to be in the low- to mid- $30 million range. On a consolidated basis, we expect a sequential increase in third quarter 2022 results, with Adjusted EBITDA in the range of $60 million to $70 million on increased revenue.

Full Year 2022 Guidance

"For the full year of 2022, at the segment level compared to 2021, we forecast SSR operating results to improve on higher revenue, and EBITDA margin to average in the high 20% range. ROV fleet utilization is expected to be in the mid-60% range for the year. For Manufactured Products, we forecast higher operating results on a significant increase in revenue compared to 2021, with backlog additions from 2021 resulting in significantly higher revenue in the second half of this year. We expect operating margin to be in the low- to mid-single-digit range and our book-to-bill ratio to be in the range of 1.0 to 1.2 for the full year. Quotation activity is robust within our energy businesses and interest is increasing in our mobility solutions businesses. For OPG, we expect higher activity to continue for the remainder of the year, especially for installation and IMR activity in the GoM. We expect continued higher vessel utilization and pricing to sustain operating margins in the mid-teens range for the remainder of the year. For IMDS, we forecast lower operating results on higher revenue, with operating margin to decline slightly as compared to 2021. And for ADTech, we expect lower operating results on relatively flat revenue, with operating income margin improving in the fourth quarter of 2022. Unallocated Expenses are expected to average in the low- to mid-$30 million range per quarter for the remainder of 2022.

Cash and Liquidity

"As previously announced, we entered into a new revolving credit facility in April 2022, which provides access to substantial liquidity through April of 2026. This new facility, when combined with our cash balance, gives us good flexibility both to grow our businesses and to address the maturity of our 2024 notes. We expect a meaningful reversal from cash consumption during the first half of 2022 to significant cash generation during the second half of the year and now expect to generate between $25 million and $75 million of free cash flow for the full year."

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, future expected business and financial performance and prospects of Oceaneering. More specifically, the forward-looking statements in this press release include the statements concerning Oceaneering’s: full year 2022 guidance ranges for consolidated EBITDA and expected positive free cash flow generation; characterization of market dynamics and their impact and timing on the activity in our offshore markets during the second half of 2022; backlog, to the extent backlog may be an indicator of future revenue or profitability; characterization of third quarter activity levels and operating profitability for all segments; forecasted third quarter Unallocated Expenses; expected third quarter 2022 consolidated results and EBITDA range; expectations regarding full year 2022 segment results, including anticipated ROV fleet utilization, Manufactured Products book-to-bill range, OPG IMR activity, pricing, and vessel utilization, expected segment activity and timing and its basis, forecasted segment revenue, operating income, and EBITDA and operating income margins, and the associated comparisons and explanations; expected average range of Unallocated Expenses for the remainder of 2022; expectation of a meaningful reversal from cash consumption during the first half of 2022 to significant cash generation during the second half of the year; and characterization of demand, activity levels, market fundamentals, outlook, and financials as seasonal, strong, supportive, robust, significant, substantial, or flexible.

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, including worldwide demand for and prices of oil and natural gas, oil and natural gas production growth and the supply and demand of offshore drilling rigs; actions by members of OPEC and other oil exporting countries; decisions about offshore developments to be made by oil and gas exploration, development and production companies; the use of subsea completions and our ability to capture associated market share; general economic and business conditions and industry trends; the strength of the industry segments in which we are involved; the continuing effects of the COVID-19 pandemic and the governmental, customer, supplier, and other responses thereto; cancellations of contracts, change orders and other contractual modifications, force majeure declarations and the exercise of contractual suspension rights and the resulting adjustments to our backlog; collections from our customers; our future financial performance, including as a result of the availability, terms and deployment of capital; the consequences of significant changes in currency exchange rates; the volatility and uncertainties of credit markets; changes in tax laws, regulations and interpretation by taxing authorities; changes in, or our ability to comply with, other laws and governmental regulations, including those relating to the environment; the continued availability of qualified personnel; our ability to obtain raw materials and parts on a timely basis and, in some cases, from limited sources; operating risks normally incident to offshore exploration, development and production operations; hurricanes and other adverse weather and sea conditions; cost and time associated with drydocking of our vessels; the highly competitive nature of our businesses; adverse outcomes from legal or regulatory proceedings; the risks associated with integrating businesses we acquire; rapid technological changes; and social, political, military and economic situations in foreign countries where we do business and the possibilities of civil disturbances, war, other armed conflicts or terrorist attacks. 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. You should not place undue reliance on forward-looking statements. Except to the extent required by applicable law, Oceaneering undertakes no obligation to update or revise any forward-looking statement.

Oceaneering is a global technology company delivering engineered services and products and robotic solutions to the offshore energy, defense, aerospace, manufacturing, and entertainment industries.

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

- Tables follow on next page -

 

 

 

 

 

 

OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES

 

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

Jun 30, 2022

Dec 31, 2021

 

 

 

 

(in thousands)

ASSETS

 

 

 

 

 

Current assets (including cash and cash equivalents of $368,412 and $538,114)

 

 

$

1,147,764

 

$

1,188,003

 

Net property and equipment

 

 

 

 

455,304

 

 

489,596

 

Other assets

 

 

 

 

269,355

 

 

285,260

 

Total Assets

 

 

$

1,872,423

 

$

1,962,859

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

Current liabilities

 

 

 

$

472,739

 

$

501,161

 

Long-term debt

 

 

 

 

701,539

 

 

702,067

 

Other long-term liabilities

 

 

 

221,417

 

 

248,607

 

Equity

 

 

 

 

476,728

 

 

511,024

 

Total Liabilities and Equity

 

 

$

1,872,423

 

$

1,962,859

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

For the Three Months Ended

For the Six Months Ended

 

Jun 30, 2022

Jun 30, 2021

Mar 31, 2022

Jun 30, 2022

Jun 30, 2021

 

(in thousands, except per share amounts)

 

 

 

 

 

 

Revenue

$

524,031

 

$

498,199

 

$

446,159

 

$

970,190

 

$

935,752

 

Cost of services and products

 

447,990

 

 

429,802

 

 

400,679

 

 

848,669

 

 

810,698

 

Gross margin

 

76,041

 

 

68,397

 

 

45,480

 

 

121,521

 

 

125,054

 

Selling, general and administrative expense

 

53,191

 

 

45,578

 

 

46,519

 

 

99,710

 

 

88,452

 

Income (loss) from operations

 

22,850

 

 

22,819

 

 

(1,039

)

 

21,811

 

 

36,602

 

Interest income

 

767

 

 

683

 

 

796

 

 

1,563

 

 

1,202

 

Interest expense, net of amounts capitalized

 

(9,619

)

 

(9,729

)

 

(9,443

)

 

(19,062

)

 

(20,136

)

Equity in income (losses) of unconsolidated affiliates

 

318

 

 

378

 

 

294

 

 

612

 

 

912

 

Other income (expense), net

 

583

 

 

(1,955

)

 

444

 

 

1,027

 

 

(3,408

)

Income (loss) before income taxes

 

14,899

 

 

12,196

 

 

(8,948

)

 

5,951

 

 

15,172

 

Provision (benefit) for income taxes

 

11,179

 

 

5,955

 

 

10,262

 

 

21,441

 

 

18,296

 

Net Income (Loss)

$

3,720

 

$

6,241

 

$

(19,210

)

$

(15,490

)

$

(3,124

)

 

 

 

 

 

 

Weighted average diluted shares outstanding

 

101,430

 

 

100,847

 

 

99,963

 

 

100,110

 

 

99,613

 

Diluted earnings (loss) per share

$

0.04

 

$

0.06

 

$

(0.19

)

$

(0.15

)

$

(0.03

)

 

 

 

 

 

 

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 Six Months Ended

 

 

Jun 30, 2022

Jun 30, 2021

Mar 31, 2022

Jun 30, 2022

Jun 30, 2021

 

 

($ in thousands)

Subsea Robotics

 

 

 

 

 

 

 

Revenue

$

157,123

 

$

141,371

 

$

127,989

 

$

285,112

 

$

260,490

 

 

Gross margin

$

37,004

 

$

31,767

 

$

21,958

 

$

58,962

 

$

55,845

 

Operating income (loss)

$

25,938

 

$

21,710

 

$

11,552

 

$

37,490

 

$

36,329

 

Operating income (loss) %

 

17

%

 

15

%

 

9

%

 

13

%

 

14

%

 

ROV days available

 

22,750

 

 

22,750

 

 

22,500

 

 

45,250

 

 

45,219

 

 

ROV days utilized

 

14,631

 

 

14,005

 

 

11,842

 

 

26,473

 

 

25,892

 

 

ROV utilization

 

64

%

 

62

%

 

53

%

 

59

%

 

57

%

 

 

 

 

 

 

 

Manufactured Products

 

 

 

 

 

 

 

Revenue

$

105,456

 

$

79,127

 

$

82,692

 

$

188,148

 

$

165,952

 

 

Gross margin

$

7,918

 

$

8,391

 

$

11,002

 

$

18,920

 

$

18,395

 

Operating income (loss)

$

(1,365

)

$

790

 

$

2,643

 

$

1,278

 

$

3,543

 

Operating income (loss) %

 

(1

) %

 

1

%

 

3

%

 

1

%

 

2

%

Backlog at end of period

$

335,000

 

$

315,000

 

$

334,000

 

$

335,000

 

$

315,000

 

 

 

 

 

 

 

 

Offshore Projects Group

 

 

 

 

 

 

 

Revenue

$

116,457

 

$

107,951

 

$

97,397

 

$

213,854

 

$

197,185

 

 

Gross margin

$

25,441

 

$

14,566

 

$

7,737

 

$

33,178

 

$

29,677

 

Operating income (loss)

$

17,535

 

$

7,996

 

$

666

 

$

18,201

 

$

16,809

 

Operating income (loss) %

 

15

%

 

7

%

 

1

%

 

9

%

 

9

%

 

 

 

 

 

 

 

Integrity Management & Digital Solutions

 

 

 

 

 

 

Revenue

$

59,438

 

$

64,070

 

$

56,570

 

$

116,008

 

$

118,118

 

 

Gross margin

$

9,222

 

$

10,462

 

$

9,199

 

$

18,421

 

$

18,671

 

Operating income (loss)

$

3,436

 

$

4,721

 

$

3,508

 

$

6,944

 

$

7,195

 

Operating income (loss) %

 

6

%

 

7

%

 

6

%

 

6

%

 

6

%

 

 

 

 

 

 

 

Aerospace and Defense Technologies

 

 

 

 

 

 

Revenue

$

85,557

 

$

105,680

 

$

81,511

 

$

167,068

 

$

194,007

 

 

Gross margin

$

15,744

 

$

24,603

 

$

16,870

 

$

32,614

 

$

46,713

 

Operating income (loss)

$

8,961

 

$

19,340

 

$

11,844

 

$

20,805

 

$

36,179

 

Operating income (loss) %

 

10

%

 

18

%

 

15

%

 

12

%

 

19

%

 

 

 

 

 

 

 

Unallocated Expenses

 

 

 

 

 

 

 

Gross margin

$

(19,288

)

$

(21,392

)

$

(21,286

)

$

(40,574

)

$

(44,247

)

Operating income (loss)

$

(31,655

)

$

(31,738

)

$

(31,252

)

$

(62,907

)

$

(63,453

)

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

Revenue

$

524,031

 

$

498,199

 

$

446,159

 

$

970,190

 

$

935,752

 

 

Gross margin

$

76,041

 

$

68,397

 

$

45,480

 

$

121,521

 

$

125,054

 

Operating income (loss)

$

22,850

 

$

22,819

 

$

(1,039

)

$

21,811

 

$

36,602

 

Operating income (loss) %

 

4

%

 

5

%

 

%

 

2

%

 

4

%

 

The above Segment Information does not include adjustments for non-recurring transactions. See the tables below under the caption "Reconciliations of Non-GAAP to GAAP Financial Information" for financial measures that our management considers in evaluating our ongoing operations.

 

 

 

 

 

 

 

SELECTED CASH FLOW INFORMATION

 

 

 

 

 

For the Three Months Ended

For the Six Months Ended

 

Jun 30, 2022

Jun 30, 2021

Mar 31, 2022

Jun 30, 2022

Jun 30, 2021

 

(in thousands)

 

 

 

 

 

 

Capital Expenditures, including Acquisitions

$

16,495

$

12,629

$

19,319

$

35,814

$

23,328

 

 

 

 

 

 

Depreciation and Amortization:

 

 

 

 

 

Energy Services and Products

 

 

 

 

 

Subsea Robotics

$

17,531

$

22,436

$

19,001

$

36,532

$

45,388

Manufactured Products

 

3,020

 

3,248

 

3,072

 

6,092

 

6,475

Offshore Projects Group

 

7,107

 

6,862

 

7,297

 

14,404

 

13,987

Integrity Management & Digital Solutions

 

1,034

 

1,091

 

1,030

 

2,064

 

2,215

Total Energy Services and Products

 

28,692

 

33,637

 

30,400

 

59,092

 

68,065

Aerospace and Defense Technologies

 

821

 

1,404

 

656

 

1,477

 

2,680

Unallocated Expenses

 

1,347

 

184

 

963

 

2,310

 

951

Total Depreciation and Amortization

$

30,860

$

35,225

$

32,019

$

62,879

$

71,696

 

 

 

 

 

 

 

 

 

 

 

 

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 (Loss) and Diluted Earnings (Loss) 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, 2022 Adjusted EBITDA Estimates, and Free Cash Flow, as well as the following by segment: Adjusted Operating Income and Margins, EBITDA, EBITDA Margins, 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

Jun 30, 2022

Jun 30, 2021

Mar 31, 2022

 

 

 

Net Income (Loss)

 

Diluted EPS

 

Net Income (Loss)

 

Diluted EPS

 

Net Income (Loss)

 

Diluted EPS

 

 

 

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

Net income (loss) and diluted EPS as reported in accordance with GAAP

 

$

3,720

 

 

$

0.04

 

$

6,241

 

 

$

0.06

 

$

(19,210

)

 

$

(0.19

)

 

Pre-tax adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on sale of asset

 

 

 

 

 

 

 

1,415

 

 

 

 

 

 

 

 

 

Foreign currency (gains) losses

 

 

(928

)

 

 

 

 

1,800

 

 

 

 

 

(406

)

 

 

 

Total pre-tax adjustments

 

 

(928

)

 

 

 

 

3,215

 

 

 

 

 

(406

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

142

 

 

 

 

 

(674

)

 

 

 

 

90

 

 

 

 

Discrete tax items:

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

(3

)

 

 

 

 

(4

)

 

 

 

 

140

 

 

 

 

Uncertain tax positions

 

 

(593

)

 

 

 

 

186

 

 

 

 

 

(632

)

 

 

 

Valuation allowances

 

 

3,419

 

 

 

 

 

3,525

 

 

 

 

 

14,927

 

 

 

 

Other

 

 

1,689

 

 

 

 

 

(2,136

)

 

 

 

 

(1,322

)

 

 

 

Total discrete tax adjustments

 

 

4,512

 

 

 

 

 

1,571

 

 

 

 

 

13,113

 

 

 

 

Total of adjustments

 

 

3,726

 

 

 

 

 

4,112

 

 

 

 

 

12,797

 

 

 

 

Adjusted Net Income (Loss)

 

$

7,446

 

 

$

0.07

 

$

10,353

 

 

$

0.10

 

$

(6,413

)

 

$

(0.06

)

 

Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss)

 

 

 

 

101,430

 

 

 

 

100,847

 

 

 

 

99,963

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended

 

 

 

Jun 30, 2022

Jun 30, 2021

 

 

 

 

 

 

Net Income (Loss)

 

Diluted EPS

 

Net Income (Loss)

 

Diluted EPS

 

 

 

 

 

 

(in thousands, except per share amounts)

 

 

 

 

 

 

 

Net income (loss) and diluted EPS as reported in accordance with GAAP

 

 

 

 

 

$

(15,490

)

 

$

(0.15

)

 

$

(3,124

)

 

$

(0.03

)

Pre-tax adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

Loss on sale of asset

 

 

 

 

 

 

 

 

 

 

 

1,415

 

 

 

Restructuring expenses and other

 

 

 

 

 

 

 

 

 

 

 

1,308

 

 

 

Foreign currency (gains) losses

 

 

 

 

 

 

(1,334

)

 

 

 

 

3,661

 

 

 

Total pre-tax adjustments

 

 

 

 

 

 

(1,334

)

 

 

 

 

6,384

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

232

 

 

 

 

 

(1,279

)

 

 

Discrete tax items:

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

 

 

 

 

137

 

 

 

 

 

573

 

 

 

Uncertain tax positions

 

 

 

 

 

 

(1,225

)

 

 

 

 

170

 

 

 

Valuation allowances

 

 

 

 

 

 

18,346

 

 

 

 

 

10,283

 

 

 

Other

 

 

 

 

 

 

367

 

 

 

 

 

139

 

 

 

Total discrete tax adjustments

 

 

 

 

 

 

17,625

 

 

 

 

 

11,165

 

 

 

Total of adjustments

 

 

 

 

 

 

16,523

 

 

 

 

 

16,270

 

 

 

Adjusted Net Income (Loss)

 

 

 

 

 

$

1,033

 

 

$

0.01

 

 

$

13,146

 

 

$

0.13

 

Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss)

 

 

 

 

 

 

 

 

101,409

 

 

 

 

 

100,672

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA and Adjusted EBITDA and Margins

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

Jun 30, 2022

 

Jun 30, 2021

 

Mar 31, 2022

 

Jun 30, 2022

 

Jun 30, 2021

 

 

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

3,720

 

 

$

6,241

 

 

$

(19,210

)

 

$

(15,490

)

 

$

(3,124

)

Depreciation and amortization

 

 

30,860

 

 

 

35,225

 

 

 

32,019

 

 

 

62,879

 

 

 

71,696

 

Subtotal

 

 

34,580

 

 

 

41,466

 

 

 

12,809

 

 

 

47,389

 

 

 

68,572

 

Interest expense, net of interest income

 

 

8,852

 

 

 

9,046

 

 

 

8,647

 

 

 

17,499

 

 

 

18,934

 

Amortization included in interest expense

 

 

(166

)

 

 

907

 

 

 

200

 

 

 

34

 

 

 

1,210

 

Provision (benefit) for income taxes

 

 

11,179

 

 

 

5,955

 

 

 

10,262

 

 

 

21,441

 

 

 

18,296

 

EBITDA

 

 

54,445

 

 

 

57,374

 

 

 

31,918

 

 

 

86,363

 

 

 

107,012

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

Loss on sale of asset

 

 

 

 

 

1,415

 

 

 

 

 

 

 

 

 

1,415

 

Restructuring expenses and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,308

 

Foreign currency (gains) losses

 

 

(928

)

 

 

1,800

 

 

 

(406

)

 

 

(1,334

)

 

 

3,661

 

Total of adjustments

 

 

(928

)

 

 

3,215

 

 

 

(406

)

 

 

(1,334

)

 

 

6,384

 

Adjusted EBITDA

 

$

53,517

 

 

$

60,589

 

 

$

31,512

 

 

$

85,029

 

 

$

113,396

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

524,031

 

 

$

498,199

 

 

$

446,159

 

 

$

970,190

 

 

$

935,752

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA margin %

 

 

10

%

 

 

12

%

 

 

7

%

 

 

9

%

 

 

11

%

Adjusted EBITDA margin %

 

 

10

%

 

 

12

%

 

 

7

%

 

 

9

%

 

 

12

%

 

 

 

 

 

 

 

 

 

 

 

Free Cash Flow

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

Jun 30, 2022

 

Jun 30, 2021

 

Mar 31, 2022

 

Jun 30, 2022

 

Jun 30, 2021

 

 

(in thousands)

Net Income (loss)

 

$

3,720

 

 

$

6,241

 

 

$

(19,210

)

 

$

(15,490

)

 

$

(3,124

)

Non-cash adjustments:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

30,860

 

 

 

35,225

 

 

 

32,019

 

 

 

62,879

 

 

 

71,696

 

Other non-cash

 

 

788

 

 

 

(1,294

)

 

 

592

 

 

 

1,380

 

 

 

(1,659

)

Other increases (decreases) in cash from operating activities

 

 

(79,349

)

 

 

10,374

 

 

 

(93,902

)

 

 

(173,251

)

 

 

(18,090

)

Cash flow provided by (used in) operating activities

 

 

(43,981

)

 

 

50,546

 

 

 

(80,501

)

 

 

(124,482

)

 

 

48,823

 

Purchases of property and equipment

 

 

(16,495

)

 

 

(12,629

)

 

 

(19,319

)

 

 

(35,814

)

 

 

(23,328

)

Free Cash Flow

 

$

(60,476

)

 

$

37,917

 

 

$

(99,820

)

 

$

(160,296

)

 

$

25,495

 

 

 

 

 

 

 

 

 

 

 

 

2022 Adjusted EBITDA Estimates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ending

 

 

 

 

 

 

 

 

September 30, 2022

 

 

 

 

 

 

 

 

Low

 

High

 

 

 

 

 

 

 

 

(in thousands)

Income (loss) before income taxes

 

 

 

 

 

 

 

$

18,000

 

 

$

26,000

 

Depreciation and amortization

 

 

 

 

 

 

 

 

32,000

 

 

 

34,000

 

Subtotal

 

 

 

 

 

 

 

 

50,000

 

 

 

60,000

 

Interest expense, net of interest income

 

 

 

 

 

 

 

 

10,000

 

 

 

10,000

 

Adjusted EBITDA

 

 

 

 

 

 

 

$

60,000

 

 

$

70,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ending

 

 

 

 

 

 

 

 

December 31, 2022

 

 

 

 

 

 

 

 

Low

 

High

 

 

 

 

 

 

 

 

(in thousands)

Income (loss) before income taxes

 

 

 

 

 

 

 

$

47,000

 

 

$

67,000

 

Depreciation and amortization

 

 

 

 

 

 

 

 

125,000

 

 

 

135,000

 

Subtotal

 

 

 

 

 

 

 

 

172,000

 

 

 

202,000

 

Interest expense, net of interest income

 

 

 

 

 

 

 

 

38,000

 

 

 

38,000

 

Adjusted EBITDA

 

 

 

 

 

 

 

$

210,000

 

 

$

240,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022 Free Cash Flow Estimate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ending

 

 

 

 

 

 

 

 

December 31, 2022

 

 

 

 

 

 

 

 

Low

 

High

 

 

 

 

 

 

 

 

(in thousands)

Net income (loss)

 

 

 

 

 

 

 

$

17,000

 

 

$

26,000

 

Depreciation and amortization

 

 

 

 

 

 

 

 

125,000

 

 

 

135,000

 

Other increases (decreases) in cash from operating activities

 

 

 

 

 

 

(47,000

)

 

 

(6,000

)

Cash flow provided by (used in) operating activities

 

 

 

 

 

 

95,000

 

 

 

155,000

 

Purchases of property and equipment

 

 

 

 

 

 

 

 

(70,000

)

 

 

(80,000

)

Free Cash Flow

 

 

 

 

 

 

 

$

25,000

 

 

$

75,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Income (Loss) and Margins by Segment

 

 

 

For the Three Months Ended June 30, 2022

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated Expenses

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

25,938

 

 

$

(1,365

)

 

$

17,535

 

 

$

3,436

 

 

$

8,961

 

 

$

(31,655

)

 

$

22,850

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Income (Loss)

 

$

25,938

 

 

$

(1,365

)

 

$

17,535

 

 

$

3,436

 

 

$

8,961

 

 

$

(31,655

)

 

$

22,850

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

157,123

 

 

$

105,456

 

 

$

116,457

 

 

$

59,438

 

 

$

85,557

 

 

 

 

$

524,031

 

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

 

17

%

(1

)%

 

 

15

%

 

 

6

%

 

 

10

%

 

 

 

 

4

%

Operating income (loss) % using adjusted amounts

 

 

17

%

 

 

(1

)%

 

 

15

%

 

 

6

%

 

 

10

%

 

 

 

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended June 30, 2021

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated Expenses

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

21,710

 

 

$

790

 

 

$

7,996

 

 

$

4,721

 

 

$

19,340

 

 

$

(31,738

)

 

$

22,819

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on sale of asset

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,415

 

 

 

1,415

 

Total of adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,415

 

 

 

1,415

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Income (Loss)

 

$

21,710

 

 

$

790

 

 

$

7,996

 

 

$

4,721

 

 

$

19,340

 

 

$

(30,323

)

 

$

24,234

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

141,371

 

 

$

79,127

 

 

$

107,951

 

 

$

64,070

 

 

$

105,680

 

 

 

 

$

498,199

 

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

 

 

15

%

 

 

1

%

 

 

7

%

 

 

7

%

 

 

18

%

 

 

 

 

5

%

Operating income (loss) % using adjusted amounts

 

 

15

%

 

 

1

%

 

 

7

%

 

 

7

%

 

 

18

%

 

 

 

 

5

%

 

 

 

For the Three Months Ended March 31, 2022

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated Expenses

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

11,552

 

 

$

2,643

 

 

$

666

 

 

$

3,508

 

 

$

11,844

 

 

$

(31,252

)

 

$

(1,039

)

Adjusted Operating Income (Loss)

 

$

11,552

 

 

$

2,643

 

 

$

666

 

 

$

3,508

 

 

$

11,844

 

 

$

(31,252

)

 

$

(1,039

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

127,989

 

 

$

82,692

 

 

$

97,397

 

 

$

56,570

 

 

$

81,511

 

 

 

 

$

446,159

 

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

 

 

9

%

 

 

3

%

 

 

1

%

 

 

6

%

 

 

15

%

 

 

 

 

%

Operating income (loss) % using adjusted amounts

 

 

9

%

 

 

3

%

 

 

1

%

 

 

6

%

 

 

15

%

 

 

 

 

%

 

 

Adjusted Operating Income (Loss) and Margins by Segment

 

 

 

For the Six Months Ended June 30, 2022

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated Expenses

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

37,490

 

 

$

1,278

 

 

$

18,201

 

 

$

6,944

 

 

$

20,805

 

 

$

(62,907

)

 

$

21,811

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Income (Loss)

 

$

37,490

 

 

$

1,278

 

 

$

18,201

 

 

$

6,944

 

 

$

20,805

 

 

$

(62,907

)

 

$

21,811

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

285,112

 

 

$

188,148

 

 

$

213,854

 

 

$

116,008

 

 

$

167,068

 

 

 

 

$

970,190

 

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

 

 

13

%

 

 

1

%

 

 

9

%

 

 

6

%

 

 

12

%

 

 

 

 

2

%

Operating income (loss) % using adjusted amounts

 

 

13

%

 

 

1

%

 

 

9

%

 

 

6

%

 

 

12

%

 

 

 

 

2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2021

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated Expenses

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

36,329

 

 

$

3,543

 

 

$

16,809

 

 

$

7,195

 

 

$

36,179

 

 

$

(63,453

)

 

$

36,602

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on sale of asset

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,415

 

 

 

1,415

 

Restructuring expenses and other

 

 

395

 

 

 

537

 

 

 

149

 

 

 

217

 

 

 

10

 

 

 

 

 

 

1,308

 

Total of adjustments

 

 

395

 

 

 

537

 

 

 

149

 

 

 

217

 

 

 

10

 

 

 

1,415

 

 

 

2,723

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Income (Loss)

 

$

36,724

 

 

$

4,080

 

 

$

16,958

 

 

$

7,412

 

 

$

36,189

 

 

$

(62,038

)

 

$

39,325

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

260,490

 

 

$

165,952

 

 

$

197,185

 

 

$

118,118

 

 

$

194,007

 

 

 

 

$

935,752

 

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

 

 

14

%

 

 

2

%

 

 

9

%

 

 

6

%

 

 

19

%

 

 

 

 

4

%

Operating income (loss) % using adjusted amounts

 

 

14

%

 

 

2

%

 

 

9

%

 

 

6

%

 

 

19

%

 

 

 

 

4

%

 

 

 

EBITDA and Adjusted EBITDA and Margins by Segment

 

 

 

For the Three Months Ended June 30, 2022

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated Expenses and other

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

25,938

 

 

$

(1,365

)

 

$

17,535

 

 

$

3,436

 

 

$

8,961

 

 

$

(31,655

)

 

$

22,850

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

17,531

 

 

 

3,020

 

 

 

7,107

 

 

 

1,034

 

 

 

821

 

 

 

1,347

 

 

 

30,860

 

Other pre-tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

735

 

 

 

735

 

EBITDA

 

 

43,469

 

 

 

1,655

 

 

 

24,642

 

 

 

4,470

 

 

 

9,782

 

 

 

(29,573

)

 

 

54,445

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency (gains) losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(928

)

 

 

(928

)

Total of adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(928

)

 

 

(928

)

Adjusted EBITDA

 

$

43,469

 

 

$

1,655

 

 

$

24,642

 

 

$

4,470

 

 

$

9,782

 

 

$

(30,501

)

 

$

53,517

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

157,123

 

 

$

105,456

 

 

$

116,457

 

 

$

59,438

 

 

$

85,557

 

 

 

 

$

524,031

 

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

 

 

17

%

 

 

(1

) %

 

 

15

%

 

 

6

%

 

 

10

%

 

 

 

 

4

%

EBITDA Margin

 

 

28

%

 

 

2

%

 

 

21

%

 

 

8

%

 

 

11

%

 

 

 

 

10

%

Adjusted EBITDA Margin

 

 

28

%

 

 

2

%

 

 

21

%

 

 

8

%

 

 

11

%

 

 

 

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended June 30, 2021

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated Expenses and other

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

21,710

 

 

$

790

 

 

$

7,996

 

 

$

4,721

 

 

$

19,340

 

 

$

(31,738

)

 

$

22,819

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

22,436

 

 

 

3,248

 

 

 

6,862

 

 

 

1,091

 

 

 

1,404

 

 

 

184

 

 

 

35,225

 

Other pre-tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(670

)

 

 

(670

)

EBITDA

 

 

44,146

 

 

 

4,038

 

 

 

14,858

 

 

 

5,812

 

 

 

20,744

 

 

 

(32,224

)

 

 

57,374

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on sale of asset

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,415

 

 

 

1,415

 

Foreign currency (gains) losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,800

 

 

 

1,800

 

Total of adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,215

 

 

 

3,215

 

Adjusted EBITDA

 

$

44,146

 

 

$

4,038

 

 

$

14,858

 

 

$

5,812

 

 

$

20,744

 

 

$

(29,009

)

 

$

60,589

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

141,371

 

 

$

79,127

 

 

$

107,951

 

 

$

64,070

 

 

$

105,680

 

 

 

 

$

498,199

 

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

 

 

15

%

 

 

1

%

 

 

7

%

 

 

7

%

 

 

18

%

 

 

 

 

5

%

EBITDA Margin

 

 

31

%

 

 

5

%

 

 

14

%

 

 

9

%

 

 

20

%

 

 

 

 

12

%

Adjusted EBITDA Margin

 

 

31

%

 

 

5

%

 

 

14

%

 

 

9

%

 

 

20

%

 

 

 

 

12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA and Adjusted EBITDA and Margins by Segment

 

 

 

For the Three Months Ended March 31, 2022

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated Expenses and other

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

11,552

 

 

$

2,643

 

 

$

666

 

 

$

3,508

 

 

$

11,844

 

 

$

(31,252

)

 

$

(1,039

)

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

19,001

 

 

 

3,072

 

 

 

7,297

 

 

 

1,030

 

 

 

656

 

 

 

963

 

 

 

32,019

 

Other pre-tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

938

 

 

 

938

 

EBITDA

 

 

30,553

 

 

 

5,715

 

 

 

7,963

 

 

 

4,538

 

 

 

12,500

 

 

 

(29,351

)

 

 

31,918

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency (gains) losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(406

)

 

 

(406

)

Total of adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(406

)

 

 

(406

)

Adjusted EBITDA

 

$

30,553

 

 

$

5,715

 

 

$

7,963

 

 

$

4,538

 

 

$

12,500

 

 

$

(29,757

)

 

$

31,512

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

127,989

 

 

$

82,692

 

 

$

97,397

 

 

$

56,570

 

 

$

81,511

 

 

 

 

$

446,159

 

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

 

 

9

%

 

 

3

%

 

 

1

%

 

 

6

%

 

 

15

%

 

 

 

 

%

EBITDA Margin

 

 

24

%

 

 

7

%

 

 

8

%

 

 

8

%

 

 

15

%

 

 

 

 

7

%

Adjusted EBITDA Margin

 

 

24

%

 

 

7

%

 

 

8

%

 

 

8

%

 

 

15

%

 

 

 

 

7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA and Adjusted EBITDA and Margins by Segment

 

 

 

For the Six Months Ended June 30, 2022

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated Expenses and other

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

37,490

 

 

$

1,278

 

 

$

18,201

 

 

$

6,944

 

 

$

20,805

 

 

$

(62,907

)

 

$

21,811

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

36,532

 

 

 

6,092

 

 

 

14,404

 

 

 

2,064

 

 

 

1,477

 

 

 

2,310

 

 

 

62,879

 

Other pre-tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,673

 

 

 

1,673

 

EBITDA

 

 

74,022

 

 

 

7,370

 

 

 

32,605

 

 

 

9,008

 

 

 

22,282

 

 

 

(58,924

)

 

 

86,363

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency (gains) losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,334

)

 

 

(1,334

)

Total of adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,334

)

 

 

(1,334

)

Adjusted EBITDA

 

$

74,022

 

 

$

7,370

 

 

$

32,605

 

 

$

9,008

 

 

$

22,282

 

 

$

(60,258

)

 

$

85,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

285,112

 

 

$

188,148

 

 

$

213,854

 

 

$

116,008

 

 

$

167,068

 

 

 

 

$

970,190

 

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

 

 

13

%

 

 

1

%

 

 

9

%

 

 

6

%

 

 

12

%

 

 

 

 

2

%

EBITDA Margin

 

 

26

%

 

 

4

%

 

 

15

%

 

 

8

%

 

 

13

%

 

 

 

 

9

%

Adjusted EBITDA Margin

 

 

26

%

 

 

4

%

 

 

15

%

 

 

8

%

 

 

13

%

 

 

 

 

9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2021

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated Expenses and other

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

36,329

 

 

$

3,543

 

 

$

16,809

 

 

$

7,195

 

 

$

36,179

 

 

$

(63,453

)

 

$

36,602

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

45,388

 

 

 

6,475

 

 

 

13,987

 

 

 

2,215

 

 

 

2,680

 

 

 

951

 

 

 

71,696

 

Other pre-tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,286

)

 

 

(1,286

)

EBITDA

 

 

81,717

 

 

 

10,018

 

 

 

30,796

 

 

 

9,410

 

 

 

38,859

 

 

 

(63,788

)

 

 

107,012

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on sale of asset

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,415

 

 

 

1,415

 

Restructuring expenses and other

 

 

395

 

 

 

537

 

 

 

149

 

 

 

217

 

 

 

10

 

 

 

 

 

 

1,308

 

Foreign currency (gains) losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,661

 

 

 

3,661

 

Total of adjustments

 

 

395

 

 

 

537

 

 

 

149

 

 

 

217

 

 

 

10

 

 

 

5,076

 

 

 

6,384

 

Adjusted EBITDA

 

$

82,112

 

 

$

10,555

 

 

$

30,945

 

 

$

9,627

 

 

$

38,869

 

 

$

(58,712

)

 

$

113,396

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

260,490

 

 

$

165,952

 

 

$

197,185

 

 

$

118,118

 

 

$

194,007

 

 

 

 

$

935,752

 

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

 

 

14

%

 

 

2

%

 

 

9

%

 

 

6

%

 

 

19

%

 

 

 

 

4

%

EBITDA Margin

 

 

31

%

 

 

6

%

 

 

16

%

 

 

8

%

 

 

20

%

 

 

 

 

11

%

Adjusted EBITDA Margin

 

 

32

%

 

 

6

%

 

 

16

%

 

 

8

%

 

 

20

%

 

 

 

 

12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mark Peterson
Vice President, Corporate Development and Investor Relations
Oceaneering International, Inc.
713-329-4507
investorrelations@oceaneering.com

Source: Oceaneering International, Inc.