OII
$21.35
Oceaneering International
$.61
2.94%
Earnings Details
3rd Quarter September 2022
Wednesday, October 26, 2022 5:01:00 PM
Tweet Share Watch
Summary

Oceaneering International Beats

Oceaneering International (OII) reported 3rd Quarter September 2022 earnings of $0.23 per share on revenue of $559.7 million. The consensus earnings estimate was $0.13 per share on revenue of $544.7 million. The Earnings Whisper number was $0.14 per share. Revenue grew 19.9% on a year-over-year basis.

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
$0.23
Earnings Whisper
$0.14
Consensus Estimate
$0.13
Reported Revenue
$559.7 Mil
Revenue Estimate
$544.7 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Oceaneering Reports Third Quarter 2022 Results

HOUSTON--(BUSINESS WIRE)--Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today reported net income of $18.3 million, or $0.18 per share, on revenue of $560 million for the three months ended September 30, 2022. Adjusted net income was $23.7 million, or $0.23 per share, reflecting the impact of $1.1 million of pre-tax adjustments associated with foreign exchange losses recognized during the quarter and $4.4 million of discrete tax adjustments, primarily due to changes in valuation allowances and uncertain tax positions.

During the prior quarter ended June 30, 2022, Oceaneering reported net income of $3.7 million, or $0.04 per share, on revenue of $524 million. 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.

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 and 2023 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 Nine Months Ended

 

 

 

Sep 30,

 

Jun 30,

 

Sep 30,

 

 

 

2022

 

2021

 

2022

 

2022

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

559,671

 

$

466,814

 

 

$

524,031

 

$

1,529,861

 

$

1,402,566

 

 

Gross Margin

 

 

95,754

 

 

59,848

 

 

 

76,041

 

 

217,275

 

 

184,902

 

 

Income (Loss) from Operations

 

 

46,875

 

 

15,769

 

 

 

22,850

 

 

68,686

 

 

52,371

 

 

Net Income (Loss)

 

 

18,303

 

 

(7,370

)

 

 

3,720

 

 

2,813

 

 

(10,494

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings (Loss) Per Share

 

$

0.18

 

$

(0.07

)

 

$

0.04

 

$

0.03

 

$

(0.11

)

 

 

 

 

 

 

 

For the third quarter of 2022:

  • Consolidated Adjusted EBITDA was $77.6 million;
  • Consolidated Operating Income was $46.9 million;
  • Cash flow provided by operating activities was $85.9 million and free cash flow was $66.6 million, with an ending cash position of $428 million; and
  • Consolidated order intake was $700 million.

As of September 30, 2022:

  • Remotely Operated Vehicles (ROV) fleet count was 250, Q3 utilization was 67%, and Q3 average revenue per day on hire was $8,468; and
  • Manufactured Products backlog was $365 million.

Initial guidance for 2023:

  • Consolidated EBITDA is expected in the range of $260 million to $310 million; and
  • Free cash flow generation is expected to exceed $100 million.

Roderick A. Larson, President and Chief Executive Officer of Oceaneering, stated, "Our third quarter results were driven by improved offshore activity and pricing, particularly in the Gulf of Mexico (GoM), which ticked up further during the quarter. We produced adjusted consolidated EBITDA of $77.6 million, which exceeded our guidance and consensus estimates. Offshore activity drove significant operating improvements in our energy businesses, which were led by our Subsea Robotics (SSR) and Offshore Projects Group (OPG) segments. In addition, increased manufacturing throughput led to improved operating margins in our Manufactured Products segment. We also saw a meaningful recovery in our government-focused businesses after experiencing the effects of negative timing during the second quarter of 2022. For the full year of 2022, we expect our adjusted EBITDA within the narrowed range of $215 million to $240 million and continue to expect positive free cash flow in the range of $25 million to $75 million.

“The offshore recovery is clearly underway, and with increasing emphasis on both energy security and development of the cleanest, safest and most reliable energy sources, I expect positive market fundamentals to support our energy-focused businesses for years to come. In addition, with increasing competition for, and scarcity of, available labor, our mobile and subsea robotics businesses are experiencing heightened levels of interest as automation lowers on-site personnel requirements and enables remote supervisory control.

Segment Results:

“Sequentially, SSR revenue and operating income both increased as expected, with higher activity levels for ROV, survey and tooling services. SSR EBITDA margin of 31% improved over the second quarter of 2022 as new contract pricing and utilization efficiencies are increasingly being reflected in our results. As disclosed in our recent press release, we received strong SSR order intake of $300 million during the third quarter of 2022.

"Sequentially, third quarter 2022 ROV days on hire were 5% higher, with drill support days higher and vessel-based services days essentially flat. Our fleet use during the quarter was 60% in drill support and 40% in vessel-based activity, compared to 57% and 43%, respectively, during the second quarter. Fleet utilization rose to 67% for the quarter as compared to 64% during the second quarter. Third quarter 2022 average ROV revenue per day on hire of $8,468 was 2% higher than in the second quarter.

"Manufactured Products third quarter 2022 operating results improved despite an 11% decrease in revenue. Operating income and related margin percentage of $4.3 million and 5%, respectively, improved measurably from the second quarter of 2022 due primarily to increased manufacturing throughput in our subsea hardware businesses. Order intake during the quarter was solid, with backlog on September 30, 2022 increasing to $365 million from our June 30, 2022 backlog of $335 million. Our book-to-bill ratio was 1.17 for the nine months ended September 30, 2022, and 1.08 for the trailing 12 months.

"As expected, OPG saw strong seasonal activity during the third quarter of 2022, which resulted in higher operating income on a 31% increase in revenue as compared to the second quarter. Results were driven by increased intervention and installation work, primarily in the GoM. OPG’s operating income margin of 13% reflected slight changes in service mix and continued high levels of demand and pricing for vessel-based services in the GoM.

"Sequentially, Integrity Management and Digital Solutions (IMDS) operating income declined slightly on 2% less revenue. Revenue declined as customers, particularly in Europe, delayed inspection programs and kept facilities running to support energy security priorities. Operating income margin of 5% declined from the 6% recorded for the second quarter of 2022, due primarily to the continuing impacts of employee wage inflation.

"Aerospace and Defense Technologies (ADTech) third quarter 2022 operating income increased significantly from the second quarter on essentially flat revenue. Operating income margin of 15% improved significantly from the second quarter of 2022, reflecting recovery of prior quarter pre-contract costs and favorable project mix. At the corporate level, Unallocated Expenses of $30.9 million for the third quarter were less than expected, and slightly lower than the second quarter of 2022.

Fourth Quarter and Full Year Outlook:

"Looking forward, on a consolidated basis, we believe that our fourth quarter 2022 EBITDA will decline on relatively flat revenue as compared to our third quarter results. Sequentially, we forecast: higher revenue and operating profitability in our Manufactured Products segment; slightly lower revenue and operating results in our SSR segment; significantly lower revenue and operating profitability in our OPG segment due to lower seasonal activity; slightly lower revenue and operating results in our IMDS segment; and modestly higher revenue and lower operating results in our ADTech segment. Unallocated Expenses are forecast to be in the mid-$30 million range.

"For the full year of 2022, we expect to generate adjusted EBITDA within the narrowed range of $215 million to $240 million. Our guidance for organic capital expenditures remains in the range of $70 million to $80 million and our guidance for cash income tax payments remains in the range of $40 million to $45 million. We continue to expect positive free cash flow of between $25 million and $75 million for the full year of 2022.

Initial 2023 Guidance:

"Looking into 2023, year over year, we are anticipating increased activity and improved operating performance across each of our operating segments, led by gains from SSR and OPG. At this time, we forecast EBITDA in the range of $260 million to $310 million in 2023, driving healthy levels of cash flow from operations. In 2023, we expect capital expenditures to be higher than in 2022 as we continue to focus on growth. We also expect to generate positive free cash flow in excess of $100 million. We will provide more specific guidance on our expectations for 2023 during the year-end reporting process.

Key Priorities:

"Our key priorities remain unchanged. Focusing on safety, maintaining our financial and capital discipline, generating significant free cash flow, managing our 2024 debt maturity, and growing the Company by leveraging core competencies remain our top priorities for the foreseeable future. Increasing our pricing and margins to generate a fair return for our world-class services and products is also a priority. Optimizing each of these priorities positions us for success in the energy transition while presenting increasing opportunities to provide returns to our 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, 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: forecasted FY 2023 guidance ranges for consolidated EBITDA, free cash flow and growth capital expenditures; beliefs regarding offshore recovery and market fundamentals; backlog, to the extent backlog may be an indicator of future revenue or profitability; forecasted direction of fourth quarter 2022 consolidated EBITDA and revenue, and segments revenue and operating results; forecasted range of fourth quarter 2022 Unallocated Expenses; forecasted FY 2022 guidance ranges for adjusted EBITDA, organic capital expenditures, cash income tax payments, and free cash flow ; anticipated sequentially comparative FY 2023 activity and operating performance across each operating segment, led by gains from SSR and OPG; anticipated outcomes from optimizing stated priorities; and, characterization of offshore demand, offshore recovery, offshore activity levels, market fundamentals, outlook, performance, results, opportunities, and financials as meaningful, increasing, seasonal, strong, supportive, robust, significant, substantial, good, or healthy.

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.

 

 

 

 

 

 

 

 

 

 

 

OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sep 30, 2022

 

Dec 31, 2021

 

 

 

 

 

 

 

 

(in thousands)

 

ASSETS

 

 

 

 

 

 

 

 

 

 

Current assets (including cash and cash equivalents of $427,507 and $538,114)

 

 

 

 

 

$

1,219,742

 

 

$

1,188,003

 

 

Net property and equipment

 

 

 

 

 

 

 

434,586

 

 

 

489,596

 

 

Other assets

 

 

 

 

 

 

 

268,504

 

 

 

285,260

 

 

Total Assets

 

 

 

 

 

$

1,922,832

 

 

$

1,962,859

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

$

515,725

 

 

$

501,161

 

 

Long-term debt

 

 

 

 

 

 

 

701,258

 

 

 

702,067

 

 

Other long-term liabilities

 

 

 

 

 

 

228,551

 

 

 

248,607

 

 

Equity

 

 

 

 

 

 

 

477,298

 

 

 

511,024

 

 

Total Liabilities and Equity

 

 

 

 

 

$

1,922,832

 

 

$

1,962,859

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

Sep 30, 2022

 

Sep 30, 2021

 

Jun 30, 2022

 

Sep 30, 2022

 

Sep 30, 2021

 

 

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

$

559,671

 

 

$

466,814

 

 

$

524,031

 

 

$

1,529,861

 

 

$

1,402,566

 

 

Cost of services and products

 

463,917

 

 

 

406,966

 

 

 

447,990

 

 

 

1,312,586

 

 

 

1,217,664

 

 

Gross margin

 

95,754

 

 

 

59,848

 

 

 

76,041

 

 

 

217,275

 

 

 

184,902

 

 

Selling, general and administrative expense

 

48,879

 

 

 

44,079

 

 

 

53,191

 

 

 

148,589

 

 

 

132,531

 

 

Income (loss) from operations

 

46,875

 

 

 

15,769

 

 

 

22,850

 

 

 

68,686

 

 

 

52,371

 

 

Interest income

 

1,396

 

 

 

662

 

 

 

767

 

 

 

2,959

 

 

 

1,864

 

 

Interest expense

 

(9,552

)

 

 

(9,616

)

 

 

(9,619

)

 

 

(28,614

)

 

 

(29,752

)

 

Equity in income (losses) of unconsolidated affiliates

 

496

 

 

 

189

 

 

 

318

 

 

 

1,108

 

 

 

1,101

 

 

Other income (expense), net

 

(1,222

)

 

 

(814

)

 

 

583

 

 

 

(195

)

 

 

(4,222

)

 

Income (loss) before income taxes

 

37,993

 

 

 

6,190

 

 

 

14,899

 

 

 

43,944

 

 

 

21,362

 

 

Provision (benefit) for income taxes

 

19,690

 

 

 

13,560

 

 

 

11,179

 

 

 

41,131

 

 

 

31,856

 

 

Net Income (Loss)

$

18,303

 

 

$

(7,370

)

 

$

3,720

 

 

$

2,813

 

 

$

(10,494

)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

 

101,310

 

 

 

99,797

 

 

 

101,430

 

 

 

101,372

 

 

 

99,675

 

 

Diluted earnings (loss) per share

$

0.18

 

 

$

(0.07

)

 

$

0.04

 

 

$

0.03

 

 

$

(0.11

)

 

 

 

 

 

 

 

 

 

 

 

 

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, 2022

 

Sep 30, 2021

 

Jun 30, 2022

 

Sep 30, 2022

 

Sep 30, 2021

 

 

($ in thousands)

 

Subsea Robotics

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

169,422

 

 

$

143,710

 

 

$

157,123

 

 

$

454,534

 

 

$

404,200

 

 

Gross margin

 

$

47,552

 

 

$

28,918

 

 

$

37,004

 

 

$

106,514

 

 

$

84,763

 

 

Operating income (loss)

 

$

37,069

 

 

$

19,533

 

 

$

25,938

 

 

$

74,559

 

 

$

55,862

 

 

Operating income (loss) %

 

 

22

%

 

 

14

%

 

 

17

%

 

 

16

%

 

 

14

%

 

ROV days available

 

 

23,000

 

 

 

23,002

 

 

 

22,750

 

 

 

68,250

 

 

 

68,221

 

 

ROV days utilized

 

 

15,408

 

 

 

14,474

 

 

 

14,631

 

 

 

41,881

 

 

 

40,366

 

 

ROV utilization

 

 

67

%

 

 

63

%

 

 

64

%

 

 

61

%

 

 

59

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Manufactured Products

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

94,039

 

 

$

75,359

 

 

$

105,456

 

 

$

282,187

 

 

$

241,311

 

 

Gross margin

 

$

12,170

 

 

$

8,544

 

 

$

7,918

 

 

$

31,090

 

 

$

26,939

 

 

Operating income (loss)

 

$

4,282

 

 

$

809

 

 

$

(1,365

)

 

$

5,560

 

 

$

4,352

 

 

Operating income (loss) %

 

 

5

%

 

 

1

%

 

 

(1

)%

 

 

2

%

 

 

2

%

 

Backlog at end of period

 

$

365,000

 

 

$

334,000

 

 

$

335,000

 

 

$

365,000

 

 

$

334,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Offshore Projects Group

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

152,987

 

 

$

95,580

 

 

$

116,457

 

 

$

366,841

 

 

$

292,765

 

 

Gross margin

 

$

27,647

 

 

$

13,815

 

 

$

25,441

 

 

$

60,825

 

 

$

43,492

 

 

Operating income (loss)

 

$

20,310

 

 

$

7,634

 

 

$

17,535

 

 

$

38,511

 

 

$

24,443

 

 

Operating income (loss) %

 

 

13

%

 

 

8

%

 

 

15

%

 

 

10

%

 

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Integrity Management & Digital Solutions

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

58,465

 

 

$

62,806

 

 

$

59,438

 

 

$

174,473

 

 

$

180,924

 

 

Gross margin

 

$

8,371

 

 

$

11,330

 

 

$

9,222

 

 

$

26,792

 

 

$

30,001

 

 

Operating income (loss)

 

$

3,091

 

 

$

5,362

 

 

$

3,436

 

 

$

10,035

 

 

$

12,557

 

 

Operating income (loss) %

 

 

5

%

 

 

9

%

 

 

6

%

 

 

6

%

 

 

7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace and Defense Technologies

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

84,758

 

 

$

89,359

 

 

$

85,557

 

 

$

251,826

 

 

$

283,366

 

 

Gross margin

 

$

19,431

 

 

$

20,019

 

 

$

15,744

 

 

$

52,045

 

 

$

66,732

 

 

Operating income (loss)

 

$

13,043

 

 

$

14,251

 

 

$

8,961

 

 

$

33,848

 

 

$

50,430

 

 

Operating income (loss) %

 

 

15

%

 

 

16

%

 

 

10

%

 

 

13

%

 

 

18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated Expenses

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

$

(19,417

)

 

$

(22,778

)

 

$

(19,288

)

 

$

(59,991

)

 

$

(67,025

)

 

Operating income (loss)

 

$

(30,920

)

 

$

(31,820

)

 

$

(31,655

)

 

$

(93,827

)

 

$

(95,273

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

559,671

 

 

$

466,814

 

 

$

524,031

 

 

$

1,529,861

 

 

$

1,402,566

 

 

Gross margin

 

$

95,754

 

 

$

59,848

 

 

$

76,041

 

 

$

217,275

 

 

$

184,902

 

 

Operating income (loss)

 

$

46,875

 

 

$

15,769

 

 

$

22,850

 

 

$

68,686

 

 

$

52,371

 

 

Operating income (loss) %

 

 

8

%

 

 

3

%

 

 

4

%

 

 

4

%

 

 

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 Nine Months Ended

 

 

 

 

Sep 30, 2022

 

Sep 30, 2021

 

Jun 30, 2022

 

Sep 30, 2022

 

Sep 30, 2021

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures, including Acquisitions

 

 

$

19,280

 

$

12,488

 

$

16,495

 

$

55,094

 

$

35,816

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization:

 

 

 

 

 

 

 

 

 

 

 

 

Energy Services and Products

 

 

 

 

 

 

 

 

 

 

 

 

Subsea Robotics

 

 

$

16,013

 

$

21,483

 

$

17,531

 

$

52,545

 

$

66,871

 

Manufactured Products

 

 

 

2,939

 

 

3,202

 

 

3,020

 

 

9,031

 

 

9,677

 

Offshore Projects Group

 

 

 

7,132

 

 

6,781

 

 

7,107

 

 

21,536

 

 

20,768

 

Integrity Management & Digital Solutions

 

 

 

1,695

 

 

1,114

 

 

1,034

 

 

3,759

 

 

3,329

 

Total Energy Services and Products

 

 

 

27,779

 

 

32,580

 

 

28,692

 

 

86,871

 

 

100,645

 

Aerospace and Defense Technologies

 

 

 

671

 

 

1,427

 

 

821

 

 

2,148

 

 

4,107

 

Unallocated Expenses

 

 

 

1,799

 

 

234

 

 

1,347

 

 

4,109

 

 

1,185

 

Total Depreciation and Amortization

 

 

$

30,249

 

$

34,241

 

$

30,860

 

$

93,128

 

$

105,937

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

Sep 30, 2022

Sep 30, 2021

Jun 30, 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

 

$

18,303

 

 

$

0.18

 

$

(7,370

)

 

$

(0.07

)

 

$

3,720

 

 

$

0.04

 

Pre-tax adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency (gains) losses

 

 

1,145

 

 

 

 

 

289

 

 

 

 

 

(928

)

 

 

 

Total pre-tax adjustments

 

 

1,145

 

 

 

 

 

289

 

 

 

 

 

(928

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

(174

)

 

 

 

 

(152

)

 

 

 

 

142

 

 

 

 

Discrete tax items:

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

 

 

 

 

 

(29

)

 

 

 

 

(3

)

 

 

 

Uncertain tax positions

 

 

1,813

 

 

 

 

 

(123

)

 

 

 

 

(593

)

 

 

 

Valuation allowances

 

 

452

 

 

 

 

 

5,898

 

 

 

 

 

3,419

 

 

 

 

Other

 

 

2,162

 

 

 

 

 

77

 

 

 

 

 

1,689

 

 

 

 

Total discrete tax adjustments

 

 

4,427

 

 

 

 

 

5,823

 

 

 

 

 

4,512

 

 

 

 

Total of adjustments

 

 

5,398

 

 

 

 

 

5,960

 

 

 

 

 

3,726

 

 

 

 

Adjusted Net Income (Loss)

 

$

23,701

 

 

$

0.23

 

$

(1,410

)

 

$

(0.01

)

 

$

7,446

 

 

$

0.07

 

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

 

 

 

 

101,310

 

 

 

 

99,797

 

 

 

 

 

101,430

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended

 

Sep 30, 2022

Sep 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

$

2,813

 

 

$

0.03

 

$

(10,494

)

 

$

(0.11

)

Pre-tax adjustments for the effects of:

 

 

 

 

 

 

 

Loss on sale of asset

 

 

 

 

 

 

1,415

 

 

 

Restructuring expenses and other

 

 

 

 

 

 

1,308

 

 

 

Foreign currency (gains) losses

 

(189

)

 

 

 

 

3,950

 

 

 

Total pre-tax adjustments

 

(189

)

 

 

 

 

6,673

 

 

 

 

 

 

 

 

 

 

 

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

 

58

 

 

 

 

 

(1,431

)

 

 

Discrete tax items:

 

 

 

 

 

 

 

Share-based compensation

 

137

 

 

 

 

 

544

 

 

 

Uncertain tax positions

 

588

 

 

 

 

 

47

 

 

 

Valuation allowances

 

18,798

 

 

 

 

 

16,181

 

 

 

Other

 

2,529

 

 

 

 

 

216

 

 

 

Total discrete tax adjustments

 

22,052

 

 

 

 

 

16,988

 

 

 

Total of adjustments

 

21,921

 

 

 

 

 

22,230

 

 

 

Adjusted Net Income (Loss)

$

24,734

 

 

$

0.24

 

$

11,736

 

 

$

0.12

 

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

 

 

 

101,372

 

 

 

 

100,790

 

EBITDA and Adjusted EBITDA and Margins

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

 

 

Sep 30, 2022

 

Sep 30, 2021

 

Jun 30, 2022

 

Sep 30, 2022

 

Sep 30, 2021

 

 

 

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

18,303

 

 

$

(7,370

)

 

$

3,720

 

 

$

2,813

 

 

$

(10,494

)

 

Depreciation and amortization

 

 

30,249

 

 

 

34,241

 

 

 

30,860

 

 

 

93,128

 

 

 

105,937

 

 

Subtotal

 

 

48,552

 

 

 

26,871

 

 

 

34,580

 

 

 

95,941

 

 

 

95,443

 

 

Interest expense, net of interest income

 

 

8,156

 

 

 

8,954

 

 

 

8,852

 

 

 

25,655

 

 

 

27,888

 

 

Amortization included in interest expense

 

 

39

 

 

 

875

 

 

 

(166

)

 

 

73

 

 

 

2,085

 

 

Provision (benefit) for income taxes

 

 

19,690

 

 

 

13,560

 

 

 

11,179

 

 

 

41,131

 

 

 

31,856

 

 

EBITDA

 

 

76,437

 

 

 

50,260

 

 

 

54,445

 

 

 

162,800

 

 

 

157,272

 

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

Loss on sale of asset

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,415

 

 

Restructuring expenses and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,308

 

 

Foreign currency (gains) losses

 

 

1,145

 

 

 

289

 

 

 

(928

)

 

 

(189

)

 

 

3,950

 

 

Total of adjustments

 

 

1,145

 

 

 

289

 

 

 

(928

)

 

 

(189

)

 

 

6,673

 

 

Adjusted EBITDA

 

$

77,582

 

 

$

50,549

 

 

$

53,517

 

 

$

162,611

 

 

$

163,945

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

559,671

 

 

$

466,814

 

 

$

524,031

 

 

$

1,529,861

 

 

$

1,402,566

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA margin %

 

 

14

%

 

 

11

%

 

 

10

%

 

 

11

%

 

 

11

%

 

Adjusted EBITDA margin %

 

 

14

%

 

 

11

%

 

 

10

%

 

 

11

%

 

 

12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free Cash Flow

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

 

 

Sep 30, 2022

 

Sep 30, 2021

 

Jun 30, 2022

 

Sep 30, 2022

 

Sep 30, 2021

 

 

 

(in thousands)

 

Net Income (loss)

 

$

18,303

 

 

$

(7,370

)

 

$

3,720

 

 

$

2,813

 

 

$

(10,494

)

 

Non-cash adjustments:

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

30,249

 

 

 

34,241

 

 

 

30,860

 

 

 

93,128

 

 

 

105,937

 

 

Other non-cash

 

 

4,171

 

 

 

5,641

 

 

 

788

 

 

 

5,551

 

 

 

3,982

 

 

Other increases (decreases) in cash from operating activities

 

 

33,176

 

 

 

3,984

 

 

 

(79,349

)

 

 

(140,075

)

 

 

(14,106

)

 

Cash flow provided by (used in) operating activities

 

 

85,899

 

 

 

36,496

 

 

 

(43,981

)

 

 

(38,583

)

 

 

85,319

 

 

Purchases of property and equipment

 

 

(19,280

)

 

 

(12,488

)

 

 

(16,495

)

 

 

(55,094

)

 

 

(35,816

)

 

Free Cash Flow

 

$

66,619

 

 

$

24,008

 

 

$

(60,476

)

 

$

(93,677

)

 

$

49,503

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022 Adjusted EBITDA Estimate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ending

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

 

 

 

 

 

 

 

Low

 

High

 

 

 

 

 

 

 

 

 

(in thousands)

 

Income (loss) before income taxes

 

 

 

 

 

 

 

$

61,000

 

 

$

81,000

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

120,000

 

 

 

125,000

 

 

Subtotal

 

 

 

 

 

 

 

 

181,000

 

 

 

206,000

 

 

Interest expense, net of interest income

 

 

 

 

 

 

 

 

34,000

 

 

 

34,000

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

$

215,000

 

 

$

240,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022 Free Cash Flow Estimate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ending

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

 

 

 

 

 

 

 

Low

 

High

 

 

 

 

 

 

 

 

 

(in thousands)

 

Net income (loss)

 

 

 

 

 

 

 

$

20,000

 

 

$

30,000

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

120,000

 

 

 

125,000

 

 

Other increases (decreases) in cash from operating activities

 

 

 

 

 

 

(45,000

)

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023 Adjusted EBITDA Estimate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ending

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

 

 

 

 

 

 

 

Low

 

High

 

 

 

 

 

 

 

 

 

(in thousands)

 

Income (loss) before income taxes

 

 

 

 

 

 

 

$

105,000

 

 

$

155,000

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

120,000

 

 

 

120,000

 

 

Subtotal

 

 

 

 

 

 

 

 

225,000

 

 

 

275,000

 

 

Interest expense, net of interest income

 

 

 

 

 

 

 

 

35,000

 

 

 

35,000

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

$

260,000

 

 

$

310,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023 Free Cash Flow Estimate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year
Ending

 

 

 

 

 

 

 

 

 

 

 

December 31,
2023

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

Net income (loss)

 

 

 

 

 

 

 

 

 

$

45,000

 

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

120,000

 

 

Other increases (decreases) in cash from operating activities

 

 

 

 

 

 

 

 

35,000

 

 

Cash flow provided by (used in) operating activities

 

 

 

 

 

 

 

 

200,000

 

 

Purchases of property and equipment

 

 

 

 

 

 

 

 

 

 

(100,000

)

 

Free Cash Flow

 

 

 

 

 

 

 

 

 

$

100,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Income (Loss) and Margins by Segment

 

 

 

For the Three Months Ended September 30, 2022

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated
Expenses

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

37,069

 

 

$

4,282

 

 

$

20,310

 

 

$

3,091

 

 

$

13,043

 

 

$

(30,920

)

 

$

46,875

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Income (Loss)

 

$

37,069

 

 

$

4,282

 

 

$

20,310

 

 

$

3,091

 

 

$

13,043

 

 

$

(30,920

)

 

$

46,875

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

169,422

 

 

$

94,039

 

 

$

152,987

 

 

$

58,465

 

 

$

84,758

 

 

 

 

$

559,671

 

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

 

 

22

%

 

 

5

%

 

 

13

%

 

 

5

%

 

 

15

%

 

 

 

 

8

%

Operating income (loss) % using adjusted amounts

 

 

22

%

 

 

5

%

 

 

13

%

 

 

5

%

 

 

15

%

 

 

 

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30, 2021

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated
Expenses

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

19,533

 

 

$

809

 

 

$

7,634

 

 

$

5,362

 

 

$

14,251

 

 

$

(31,820

)

 

$

15,769

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Income (Loss)

 

$

19,533

 

 

$

809

 

 

$

7,634

 

 

$

5,362

 

 

$

14,251

 

 

$

(31,820

)

 

$

15,769

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

143,710

 

 

$

75,359

 

 

$

95,580

 

 

$

62,806

 

 

$

89,359

 

 

 

 

$

466,814

 

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

 

 

14

%

 

 

1

%

 

 

8

%

 

 

9

%

 

 

16

%

 

 

 

 

3

%

Operating income (loss) % using adjusted amounts

 

 

14

%

 

 

1

%

 

 

8

%

 

 

9

%

 

 

16

%

 

 

 

 

3

%

 

 

 

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

%

 

Adjusted Operating Income (Loss) and Margins by Segment

 

 

 

For the Nine Months Ended September 30, 2022

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated
Expenses

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

74,559

 

 

$

5,560

 

 

$

38,511

 

 

$

10,035

 

 

$

33,848

 

 

$

(93,827

)

 

$

68,686

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Income (Loss)

 

$

74,559

 

 

$

5,560

 

 

$

38,511

 

 

$

10,035

 

 

$

33,848

 

 

$

(93,827

)

 

$

68,686

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

454,534

 

 

$

282,187

 

 

$

366,841

 

 

$

174,473

 

 

$

251,826

 

 

 

 

$

1,529,861

 

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

 

 

16

%

 

 

2

%

 

 

10

%

 

 

6

%

 

 

13

%

 

 

 

 

4

%

Operating income (loss) % using adjusted amounts

 

 

16

%

 

 

2

%

 

 

10

%

 

 

6

%

 

 

13

%

 

 

 

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30, 2021

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated
Expenses

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

55,862

 

 

$

4,352

 

 

$

24,443

 

 

$

12,557

 

 

$

50,430

 

 

$

(95,273

)

 

$

52,371

 

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)

 

$

56,257

 

 

$

4,889

 

 

$

24,592

 

 

$

12,774

 

 

$

50,440

 

 

$

(93,858

)

 

$

55,094

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

404,200

 

 

$

241,311

 

 

$

292,765

 

 

$

180,924

 

 

$

283,366

 

 

 

 

$

1,402,566

 

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

 

 

14

%

 

 

2

%

 

 

8

%

 

 

7

%

 

 

18

%

 

 

 

 

4

%

Operating income (loss) % using adjusted amounts

 

 

14

%

 

 

2

%

 

 

8

%

 

 

7

%

 

 

18

%

 

 

 

 

4

%

 

EBITDA and Adjusted EBITDA and Margins by Segment

 

 

 

For the Three Months Ended September 30, 2022

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated
Expenses
and other

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

37,069

 

 

$

4,282

 

 

$

20,310

 

 

$

3,091

 

 

$

13,043

 

 

$

(30,920

)

 

$

46,875

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

16,013

 

 

 

2,939

 

 

 

7,132

 

 

 

1,695

 

 

 

671

 

 

 

1,799

 

 

 

30,249

 

Other pre-tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(687

)

 

 

(687

)

EBITDA

 

 

53,082

 

 

 

7,221

 

 

 

27,442

 

 

 

4,786

 

 

 

13,714

 

 

 

(29,808

)

 

 

76,437

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency (gains) losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,145

 

 

 

1,145

 

Total of adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,145

 

 

 

1,145

 

Adjusted EBITDA

 

$

53,082

 

 

$

7,221

 

 

$

27,442

 

 

$

4,786

 

 

$

13,714

 

 

$

(28,663

)

 

$

77,582

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

169,422

 

 

$

94,039

 

 

$

152,987

 

 

$

58,465

 

 

$

84,758

 

 

 

 

$

559,671

 

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

 

 

22

%

 

 

5

%

 

 

13

%

 

 

5

%

 

 

15

%

 

 

 

 

8

%

EBITDA Margin

 

 

31

%

 

 

8

%

 

 

18

%

 

 

8

%

 

 

16

%

 

 

 

 

14

%

Adjusted EBITDA Margin

 

 

31

%

 

 

8

%

 

 

18

%

 

 

8

%

 

 

16

%

 

 

 

 

14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30, 2021

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated
Expenses
and other

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

19,533

 

 

$

809

 

 

$

7,634

 

 

$

5,362

 

 

$

14,251

 

 

$

(31,820

)

 

$

15,769

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

21,483

 

 

 

3,202

 

 

 

6,781

 

 

 

1,114

 

 

 

1,427

 

 

 

234

 

 

 

34,241

 

Other pre-tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

250

 

 

 

250

 

EBITDA

 

 

41,016

 

 

 

4,011

 

 

 

14,415

 

 

 

6,476

 

 

 

15,678

 

 

 

(31,336

)

 

 

50,260

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency (gains) losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

289

 

 

 

289

 

Total of adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

289

 

 

 

289

 

Adjusted EBITDA

 

$

41,016

 

 

$

4,011

 

 

$

14,415

 

 

$

6,476

 

 

$

15,678

 

 

$

(31,047

)

 

$

50,549

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

143,710

 

 

$

75,359

 

 

$

95,580

 

 

$

62,806

 

 

$

89,359

 

 

 

 

$

466,814

 

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

 

 

14

%

 

 

1

%

 

 

8

%

 

 

9

%

 

 

16

%

 

 

 

 

3

%

EBITDA Margin

 

 

29

%

 

 

5

%

 

 

15

%

 

 

10

%

 

 

18

%

 

 

 

 

11

%

Adjusted EBITDA Margin

 

 

29

%

 

 

5

%

 

 

15

%

 

 

10

%

 

 

18

%

 

 

 

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

%

 

EBITDA and Adjusted EBITDA and Margins by Segment

 

 

 

For the Nine Months Ended September 30, 2022

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated
Expenses
and other

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

74,559

 

 

$

5,560

 

 

$

38,511

 

 

$

10,035

 

 

$

33,848

 

 

$

(93,827

)

 

$

68,686

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

52,545

 

 

 

9,031

 

 

 

21,536

 

 

 

3,759

 

 

 

2,148

 

 

 

4,109

 

 

 

93,128

 

Other pre-tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

986

 

 

 

986

 

EBITDA

 

 

127,104

 

 

 

14,591

 

 

 

60,047

 

 

 

13,794

 

 

 

35,996

 

 

 

(88,732

)

 

 

162,800

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency (gains) losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(189

)

 

 

(189

)

Total of adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(189

)

 

 

(189

)

Adjusted EBITDA

 

$

127,104

 

 

$

14,591

 

 

$

60,047

 

 

$

13,794

 

 

$

35,996

 

 

$

(88,921

)

 

$

162,611

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

454,534

 

 

$

282,187

 

 

$

366,841

 

 

$

174,473

 

 

$

251,826

 

 

 

 

$

1,529,861

 

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

 

 

16

%

 

 

2

%

 

 

10

%

 

 

6

%

 

 

13

%

 

 

 

 

4

%

EBITDA Margin

 

 

28

%

 

 

5

%

 

 

16

%

 

 

8

%

 

 

14

%

 

 

 

 

11

%

Adjusted EBITDA Margin

 

 

28

%

 

 

5

%

 

 

16

%

 

 

8

%

 

 

14

%

 

 

 

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30, 2021

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated
Expenses
and other

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

55,862

 

 

$

4,352

 

 

$

24,443

 

 

$

12,557

 

 

$

50,430

 

 

$

(95,273

)

 

$

52,371

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

66,871

 

 

 

9,677

 

 

 

20,768

 

 

 

3,329

 

 

 

4,107

 

 

 

1,185

 

 

 

105,937

 

Other pre-tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,036

)

 

 

(1,036

)

EBITDA

 

 

122,733

 

 

 

14,029

 

 

 

45,211

 

 

 

15,886

 

 

 

54,537

 

 

 

(95,124

)

 

 

157,272

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,950

 

 

 

3,950

 

Total of adjustments

 

 

395

 

 

 

537

 

 

 

149

 

 

 

217

 

 

 

10

 

 

 

5,365

 

 

 

6,673

 

Adjusted EBITDA

 

$

123,128

 

 

$

14,566

 

 

$

45,360

 

 

$

16,103

 

 

$

54,547

 

 

$

(89,759

)

 

$

163,945

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

404,200

 

 

$

241,311

 

 

$

292,765

 

 

$

180,924

 

 

$

283,366

 

 

 

 

$

1,402,566

 

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

 

 

14

%

 

 

2

%

 

 

8

%

 

 

7

%

 

 

18

%

 

 

 

 

4

%

EBITDA Margin

 

 

30

%

 

 

6

%

 

 

15

%

 

 

9

%

 

 

19

%

 

 

 

 

11

%

Adjusted EBITDA Margin

 

 

30

%

 

 

6

%

 

 

15

%

 

 

9

%

 

 

19

%

 

 

 

 

12

%

 

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

Source: Oceaneering International, Inc.