Oceaneering Reports Third Quarter 2021 Results

HOUSTON, Oct. 27, 2021 /PRNewswire/ -- Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today reported a net loss of $7.4 million, or $(0.07) per share, on revenue of $467 million for the three months ended September 30, 2021. Adjusted net loss was $1.4 million, or $(0.01) per share, reflecting the impact of $0.3 million of pre-tax adjustments associated with foreign exchange losses recognized during the quarter and $5.8 million of discrete tax adjustments, primarily due to changes in valuation allowances.

During the prior quarter ended June 30, 2021, Oceaneering reported net income of $6.2 million, or $0.06 per share, on revenue of $498 million. Adjusted net income was $10.4 million, or $0.10 per share, reflecting the impact of $3.2 million of pre-tax adjustments associated with a loss on the sale of an asset and foreign exchange losses recognized during the quarter and $1.6 million of discrete tax adjustments.

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, 2021 Adjusted EBITDA 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)














Three Months Ended


Nine Months Ended



Sep 30,


Jun 30,


Sep 30,










2021


2020


2021


2021


2020












Revenue


$

466,814



$

439,743



$

498,199



$

1,402,566



$

1,403,627


Gross Margin


59,848



29,651



68,397



184,902



118,940


Income (Loss) from Operations


15,769



(60,620)



22,819



52,371



(446,559)


Net Income (Loss)


(7,370)



(79,365)



6,241



(10,494)



(471,751)













Diluted Earnings (Loss) Per Share


$

(0.07)



$

(0.80)



$

0.06



$

(0.11)



$

(4.76)







For the third quarter of 2021:

  • Consolidated EBITDA was $50.3 million
  • Consolidated Operating Income was $15.8 million
  • Cash flow generated from operations was $36.5 million
  • Free cash flow was $24.0 million
  • Cash position decreased by $8.4 million, from $456 million to $448 million
  • An additional $32.5 million of our 2024 senior notes were repurchased through open-market transactions

Initial guidance for 2022:

  • Consolidated EBITDA of $225 million to $275 million
  • Free cash flow generation similar to 2021
  • Increased growth capital expenditures as compared to 2021

Roderick A. Larson, President and Chief Executive Officer of Oceaneering, stated, "Our planning and preparation were instrumental in our team's ability to navigate through the challenges presented during the third quarter, which included hurricanes, inflation, a tightening labor market, and a constrained global supply chain. Despite these challenges, we delivered third quarter 2021 EBITDA results consistent with our original guidance and continued to generate cash and pay down debt. For the full year of 2021, we expect to generate adjusted EBITDA within the narrowed range of $210 million to $220 million. I am encouraged by the positive market fundamentals supporting our traditional businesses as well as our increasing participation in emerging markets.

"During the third quarter of 2021, we produced consolidated EBITDA of $50.3 million, a decrease from the second quarter of 2021 but within the guidance range provided at the beginning of the quarter. Offshore work in our energy-focused businesses remained seasonally active during the third quarter. However, our operations in the Gulf of Mexico were muted by Hurricane Ida and high loop currents. In general, each of our five segments performed as forecast at the beginning of the third quarter.

Segment Results:

"Sequentially, Subsea Robotics (SSR) revenue increased slightly, with good offshore activity levels as compared to the second quarter. However, operating income declined, primarily due to lower margins for remotely operated vehicle (ROV) services attributed to changes in geographic mix and a special bonus that recognized technicians for enduring extended work rotations throughout 2021 due to COVID-19 challenges. As a result, SSR adjusted EBITDA margin of 29% was slightly lower, as compared to the second quarter.

"Third quarter 2021 ROV days on hire were sequentially higher for both drill support and vessel-based services, as compared to the second quarter of 2021. Fleet utilization rose slightly, averaging 63% for the quarter, as compared to 62% in the second quarter. Our fleet use during the quarter was 57% in drill support and 43% in vessel-based activity, compared to 58% and 42%, respectively, during the second quarter. Third quarter 2021 average ROV revenue per day on hire of $7,858 was 2% lower than in the second quarter of 2021.

"Sequentially, Manufactured Products (MP) third quarter 2021 operating income and operating income margin were essentially flat with the second quarter, despite marginally lower revenue. Third quarter 2021 revenue of $75.4 million remained sub-optimal, which continued to challenge our ability to leverage the cost base of this business. Order intake during the quarter was solid, with backlog on September 30, 2021 increasing to $334 million, compared to our June 30, 2021 backlog of $315 million. Our book-to-bill ratio was 1.3 for the nine months ended September 30, 2021 and 1.0 for the trailing 12 months.

"As expected, the third quarter 2021 Offshore Projects Group (OPG) operating income was relatively flat, as compared to the second quarter of 2021, on an 11% decline in revenue. Revenue benefited from good ongoing seasonal activity in inspection, maintenance and repair (IMR) work in the Gulf of Mexico, despite some work delays caused by Hurricane Ida and high loop currents. The conclusion of field activities on several projects in Angola was the primary driver for the sequentially lower third quarter revenue. Operating income margin improved from 7% in the second quarter of 2021 to 8% in the third quarter of 2021, primarily due to improved performance on the Angola riserless light well intervention project.

"Integrity Management and Digital Solutions (IMDS) sequential operating income was higher on relatively flat revenue. Operating income margin improved to 9% in the third quarter of 2021, as efficiency improvements continue to show incremental benefits.

"Aerospace and Defense Technologies (ADTech) third quarter 2021 operating income declined from the second quarter of 2021 on a 15% decrease in revenue. Operating income margin declined to 16%, as expected, due to a higher component of lower-margin manpower activities. At the corporate level for the third quarter of 2021, Unallocated Expenses of $31.8 million were slightly higher as compared to the second quarter of 2021, but less than expected, primarily due to delayed spending on information technology infrastructure.

Fourth Quarter and Full Year Outlook:

"Looking forward on a consolidated basis, we believe that our fourth quarter 2021 EBITDA will be similar to our third quarter 2021 results on slightly higher revenue. Sequentially, we forecast significantly higher revenue and operating profitability in our Manufactured Products segment, relatively flat activity and operating profitability in our SSR and IMDS segments, relatively flat revenue with lower operating profitability in our ADTech segment, and substantially lower seasonal activity and operating profitability in our OPG segment. Unallocated Expenses are forecast to be in the mid-$30 million range, due primarily to increased spending on information technology infrastructure.

"For the full year of 2021, we expect to generate adjusted EBITDA within the narrowed range of $210 million to $220 million. We are also narrowing our guidance for capital expenditures to be in the range of $45 million to $55 million. Our guidance for cash tax payments remains in the range of $40 million to $45 million. We continue to expect $28 million of CARES Act tax refunds, with $4.7 million of this amount received during the third quarter of 2021. The timing of receipt of the remaining $23 million of these payments, whether in 2021 or 2022, remains uncertain. Regardless of the timing of the CARES Act tax refunds, we continue to expect positive free cash flow generation for 2021 to be in excess of that generated in 2020.

Initial 2022 Guidance:

"Commodity prices appear supportive to continued gradual growth in offshore oil and gas markets over the short to medium term and we anticipate accelerating interest and growth in the offshore renewables market, including offshore wind, over the longer term. We believe that our energy segments are positioned to benefit from the growth in both of these markets. We also believe that our government-focused segment, ADTech, remains well positioned for continued steady growth in the aerospace and defense markets.

"Accordingly, looking into 2022, 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 $225 million to $275 million in 2022, serving as the catalyst for generating healthy levels of cash flow from operations. In 2022, we expect capital expenditures to be higher than 2021, as we refocus our efforts on growth. We also expect to generate positive free cash flow at levels similar to 2021. We will provide more specific guidance on our expectations for 2022 during the year-end reporting process.

Cash, Liquidity and Growth:

"Over the past several years, we have put significant emphasis on maximizing our free cash flow to give us flexibility to address our 2024 debt maturity. As of September 30, 2021, with a cash balance of $448 million and an outstanding balance of $437 million on our 2024 senior notes, we are well positioned to deal with this pending debt maturity. While we will continue to be prudent with our capital spending, we are focused on developing and delivering technologies to grow our businesses in the key areas of energy transition, digital asset management, aerospace and defense, and mobile robotics, while also continuing to deploy technologies that help our customers produce hydrocarbons in the cleanest and safest manner. We believe that the technologies we deliver today, and are focused on developing for the future, will provide us with ample opportunities to grow and transform our business over the coming years."

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: projected 2022 consolidated EBITDA, capital expenditures, and free cash flow generation; expected full year 2021 adjusted EBITDA range; characterization of demand or activity levels as seasonal; references to backlog, to the extent backlog may be an indicator of future revenue, profitability or cash flows; fourth quarter consolidated EBITDA and revenue; expected fourth quarter segment activity levels and operating profitability as compared to third quarter 2021; expected fourth quarter Unallocated Expenses; estimated full year 2021 capital expenditures range, cash tax payments, and CARES Act tax refunds; full year 2021 positive free cash flow; 2022 growth and impact of energy and government markets, and our capabilities in those markets; preparedness for pending debt maturity and capital spending; and technologies providing ample opportunities to grow and transform its business over the coming years.

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 provider of engineered services and products, primarily to the offshore energy industry. Through the use of its applied technology expertise, Oceaneering also serves the defense, aerospace, and entertainment industries.

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

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




















OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES




















CONDENSED CONSOLIDATED BALANCE SHEETS



































Sep 30, 2021


Dec 31, 2020

















(in thousands)


ASSETS


















Current assets (including cash and cash equivalents of $447,725 and
$452,016)






$

1,185,135



$

1,170,263




Net property and equipment







510,728



591,107




Other assets










286,109



284,472






Total Assets






$

1,981,972



$

2,045,842






















LIABILITIES AND EQUITY











Current liabilities










$

451,246



$

437,116




Long-term debt










739,980



805,251




Other long-term liabilities






241,649



245,318




Equity










549,097



558,157






Total Liabilities and Equity






$

1,981,972



$

2,045,842






















CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS





























For the Three Months Ended


For the Nine Months Ended










Sep 30, 2021


Sep 30, 2020


Jun 30, 2021


Sep 30, 2021


Sep 30, 2020











(in thousands, except per share amounts)






















Revenue






$

466,814



$

439,743



$

498,199



$

1,402,566



$

1,403,627




Cost of services and products


406,966



410,092



429,802



1,217,664



1,284,687





Gross margin


59,848



29,651



68,397



184,902



118,940




Selling, general and administrative expense


44,079



49,396



45,578



132,531



152,856




Long-lived assets impairments


-



-



-



-



68,763




Goodwill impairment


-



40,875



-



-



343,880





Income (loss) from operations




15,769



(60,620)



22,819



52,371



(446,559)




Interest income






662



414



683



1,864



2,202




Interest expense, net of amounts capitalized


(9,616)



(9,250)



(9,729)



(29,752)



(33,323)




Equity in income (losses) of unconsolidated affiliates


189



131



378



1,101



2,002




Other income (expense), net


(814)



(2,836)



(1,955)



(4,222)



(13,624)





Income (loss) before income taxes


6,190



(72,161)



12,196



21,362



(489,302)




Provision (benefit) for income taxes


13,560



7,204



5,955



31,856



(17,551)





Net Income (Loss)


$

(7,370)



$

(79,365)



$

6,241



$

(10,494)



$

(471,751)






















Weighted average diluted shares outstanding


99,797



99,297



100,847



99,675



99,209



Diluted earnings (loss) per share


$

(0.07)



$

(0.80)



$

0.06



$

(0.11)



$

(4.76)






















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, 2021


Sep 30, 2020


Jun 30, 2021


Sep 30, 2021


Sep 30, 2020






($ in thousands)

Subsea Robotics
















Revenue



$

143,710



$

119,617



$

141,371



$

404,200



$

378,621



Gross margin



$

28,918



$

13,378



$

31,767



$

84,763



$

54,175


Operating income (loss)



$

19,533



$

2,127



$

21,710



$

55,862



$

(80,294)


Operating income (loss) %



14

%


2

%


15

%


14

%


(21)

%


ROV days available



23,002



23,000



22,750



68,221



68,500



ROV days utilized



14,474



13,601



14,005



40,366



41,955



ROV utilization



63

%


59

%


62

%


59

%


61

%
















Manufactured Products
















Revenue



$

75,359



$

110,416



$

79,127



$

241,311



$

377,520



Gross margin



$

8,544



$

11,242



$

8,391



$

26,939



$

42,870


Operating income (loss)



$

809



$

(38,198)



$

790



$

4,352



$

(100,471)


Operating income (loss) %



1

%


(35)

%


1

%


2

%


(27)

%

Backlog at end of period



$

334,000



$

318,000



$

315,000



$

334,000



$

318,000

















Offshore Projects Group
















Revenue



$

95,580



$

73,212



$

107,951



$

292,765



$

221,306



Gross margin



$

13,815



$

(1,633)



$

14,566



$

43,492



$

3,632


Operating income (loss)



$

7,634



$

(12,282)



$

7,996



$

24,443



$

(95,740)


Operating income (loss) %



8

%


(17)

%


7

%


8

%


(43)

%
















Integrity Management & Digital Solutions














Revenue



$

62,806



$

53,933



$

64,070



$

180,924



$

172,631



Gross margin



$

11,330



$

7,129



$

10,462



$

30,001



$

22,376


Operating income (loss)



$

5,362



$

793



$

4,721



$

12,557



$

(122,567)


Operating income (loss) %



9

%


1

%


7

%


7

%


(71)

%
















Aerospace and Defense Technologies














Revenue



$

89,359



$

82,565



$

105,680



$

283,366



$

253,549



Gross margin



$

20,019



$

16,668



$

24,603



$

66,732



$

51,466


Operating income (loss)



$

14,251



$

13,097



$

19,340



$

50,430



$

39,498


Operating income (loss) %



16

%


16

%


18

%


18

%


16

%















Unallocated Expenses















Gross margin



$

(22,778)



$

(17,133)



$

(21,392)



$

(67,025)



$

(55,579)


Operating income (loss)



$

(31,820)



$

(26,157)



$

(31,738)



$

(95,273)



$

(86,985)















Total


















Revenue



$

466,814



$

439,743



$

498,199



$

1,402,566



$

1,403,627



Gross margin



$

59,848



$

29,651



$

68,397



$

184,902



$

118,940


Operating income (loss)



$

15,769



$

(60,620)



$

22,819



$

52,371



$

(446,559)


Operating income (loss) %



3

%


(14)

%


5

%


4

%


(32)

%


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, 2021


Sep 30, 2020


Jun 30, 2021


Sep 30, 2021


Sep 30, 2020







(in thousands)













Capital Expenditures, including Acquisitions



$

12,488



$

7,980



$

12,629



$

35,816



$

45,840














Depreciation and amortization:












Energy Services and Products













Subsea Robotics



$

21,483



$

25,144



$

22,436



$

66,871



$

189,411



Manufactured Products



3,202



44,028



3,248



9,677



63,579



Offshore Projects Group



6,781



15,147



6,862



20,768



98,309



Integrity Management & Digital Solutions



1,114



866



1,091



3,329



125,966


Total Energy Services and Products



32,580



85,185



33,637



100,645



477,265


Aerospace and Defense Technologies



1,427



654



1,404



4,107



1,999


Unallocated Expenses



234



1,712



184



1,185



3,181



Total Depreciation and Amortization



$

34,241



$

87,551



$

35,225



$

105,937



$

482,445

















In the three and nine months ended September 30, 2020, goodwill and long-lived asset impairment expense, reflected in the depreciation and amortization expense above, was $48 million and $358 million, respectively.
















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, 2021 and 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, 2021

Sep 30, 2020

Jun 30, 2021







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


$

(7,370)



$

(0.07)



$

(79,365)



$

(0.80)



$

6,241



$

0.06



Pre-tax adjustments for the effects of:















Long-lived assets write-offs


-





7,243





-






Inventory write-downs


-





7,038





-






Goodwill impairment


-





40,875





-






Loss on sale of asset




-





-





1,415






Restructuring expenses and other


-





11,048





-






Foreign currency (gains) losses


289





2,462





1,800





Total pre-tax adjustments


289





68,666





3,215






















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


(152)





(13,211)





(674)





Discrete tax items:














Share-based compensation


(29)





16





(4)





Uncertain tax positions


(123)





(55)





186





Valuation allowances


5,898





6,599





3,525





Other


77





(278)





(2,136)






Total discrete tax adjustments


5,823





6,282





1,571






Total of adjustments


5,960





61,737





4,112





Adjusted Net Income (Loss)


$

(1,410)



$

(0.01)



$

(17,628)



$

(0.18)



$

10,353



$

0.10



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




99,797





99,297





100,847





































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


























For the Nine Months Ended







Sep 30, 2021

Sep 30, 2020










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






$

(10,494)



$

(0.11)



$

(471,751)



$

(4.76)


Pre-tax adjustments for the effects of:














Long-lived assets impairments






-





68,763





Long-lived assets write-offs






-





14,571





Inventory write-downs






-





7,038





Goodwill impairment






-





343,880





Loss on sale of asset








1,415





-





Restructuring expenses and other






1,308





23,386





Foreign currency (gains) losses






3,950





13,420




Total pre-tax adjustments






6,673





471,058




















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






(1,431)





(60,897)




Discrete tax items:













Share-based compensation






544





1,019




Uncertain tax positions






47





(8,972)




U.S. CARES Act






-





(32,625)




Valuation allowances






16,181





75,052




Other






216





(1,215)





Total discrete tax adjustments






16,988





33,259





Total of adjustments






22,230





443,420




Adjusted Net Income (Loss)






$

11,736



$

0.12



$

(28,331)



$

(0.29)


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








100,790





99,209


EBITDA and Adjusted EBITDA and Margins




















For the Three Months Ended


For the Nine Months Ended






Sep 30, 2021


Sep 30, 2020


Jun 30, 2021


Sep 30, 2021


Sep 30, 2020






($ in thousands)















Net income (loss)



$

(7,370)



$

(79,365)



$

6,241



$

(10,494)



$

(471,751)


Depreciation and amortization



34,241



87,551



35,225



105,937



482,445



Subtotal



26,871



8,186



41,466



95,443



10,694


Interest expense, net of interest income


8,954



8,836



9,046



27,888



31,121


Amortization included in interest expense


875



317



907



2,085



317


Provision (benefit) for income taxes



13,560



7,204



5,955



31,856



(17,551)



EBITDA



50,260



24,543



57,374



157,272



24,581


Adjustments for the effects of:













Long-lived assets impairments



-



-



-



-



68,763



Inventory write-downs



-



7,038



-



-



7,038



Loss on sale of asset



-



-



1,415



1,415



-



Restructuring expenses and other



-



11,048



-



1,308



23,386



Foreign currency (gains) losses



289



2,462



1,800



3,950



13,420




Total of adjustments



289



20,548



3,215



6,673



112,607



Adjusted EBITDA



$

50,549



$

45,091



$

60,589



$

163,945



$

137,188
















Revenue



$

466,814



$

439,743



$

498,199



$

1,402,566



$

1,403,627
















EBITDA margin %



11

%


6

%


12

%


11

%


2

%

Adjusted EBITDA margin %



11

%


10

%


12

%


12

%


10

%















Free Cash Flow
















For the Three Months Ended


For the Nine Months Ended




Sep 30, 2021


Sep 30, 2020


Jun 30, 2021


Sep 30, 2021


Sep 30, 2020




(in thousands)

Net Income (loss)


$

(7,370)



$

(79,365)



$

6,241



$

(10,494)



$

(471,751)


Non-cash adjustments:












Depreciation and amortization, including
goodwill impairment


34,241



87,551



35,225



105,937



482,445



Long-lived asset impairments


-



-



-



-



68,763



Other non-cash


5,641



9,423



(1,294)



3,982



4,838


Other increases (decreases) in cash from
operating activities


3,984



9,386



10,374



(14,106)



(51,932)


Cash flow provided by (used in) operating
activities


36,496



26,995



50,546



85,319



32,363


Purchases of property and equipment


(12,488)



(7,980)



(12,629)



(35,816)



(45,840)


Free Cash Flow


$

24,008



$

19,015



$

37,917



$

49,503



$

(13,477)






































2021 and 2022 Adjusted EBITDA Estimates






















For the Three Months Ended










December 31, 2021










Low


High










(in thousands)

Income (loss) before income taxes








$

4,000



$

7,000


Depreciation and amortization








36,000



38,000



Subtotal








40,000



45,000


Interest expense, net of interest income








10,000



10,000



Adjusted EBITDA








$

50,000



$

55,000























For the Year Ended










December 31, 2021










Low


High










(in thousands)

Income (loss) before income taxes








$

25,000



$

30,000


Depreciation and amortization








145,000



150,000



Subtotal








170,000



180,000


Interest expense, net of interest income








40,000



40,000



Adjusted EBITDA








$

210,000



$

220,000























For the Year Ended










December 31, 2022










Low


High










(in thousands)

Income (loss) before income taxes








$

60,000



$

110,000


Depreciation and amortization








125,000



125,000



Subtotal








185,000



235,000


Interest expense, net of interest income








40,000



40,000



Adjusted EBITDA








$

225,000



$

275,000














Adjusted Operating Income (Loss) and Margins by Segment






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 September 30, 2020





SSR


MP


OPG


IMDS


ADTech


Unallocated
Expenses


Total





($ in thousands)

Operating Income (Loss) as
reported in accordance with
GAAP


$

2,127



$

(38,198)



$

(12,282)



$

793



$

13,097



$

(26,157)



$

(60,620)


Adjustments for the effects of:















Long-lived assets write-offs


-



-



7,243



-



-



-



7,243



Inventory write-downs


7,038



-



-



-



-



-



7,038



Goodwill impairment


-



40,875



-



-



-



-



40,875



Restructuring expenses and
other


2,535



2,559



5,326



83



545



-



11,048




Total of adjustments


9,573



43,434



12,569



83



545



-



66,204



















Adjusted Operating Income
(Loss)


$

11,700



$

5,236



$

287



$

876



$

13,642



$

(26,157)



$

5,584



















Revenue


$

119,617



$

110,416



$

73,212



$

53,933



$

82,565





$

439,743


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


2

%


(35)

%


(17)

%


1

%


16

%




(14)

%

Operating income (loss) %
using adjusted amounts


10

%


5

%


-

%


2

%


17

%




1

%







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

%





Adjusted Operating Income (Loss) and Margins by Segment






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

%






















For the Nine Months Ended September 30, 2020





SSR


MP


OPG


IMDS


ADTech


Unallocated Expenses


Total





($ in thousands)

Operating Income (Loss) as
reported in accordance with
GAAP


$

(80,294)



$

(100,471)



$

(95,740)



$

(122,567)



$

39,498



$

(86,985)



$

(446,559)


Adjustments for the effects of:















Long-lived assets impairments


-



61,074



7,522



167



-



-



68,763



Long-lived assets write-offs


7,328



-



7,243



-



-



-



14,571



Inventory write-downs


7,038



-



-



-



-



-



7,038



Goodwill impairment


102,118



52,263



66,285



123,214



-



-



343,880



Restructuring expenses
and other


4,834



5,755



7,947



3,850



545



455



23,386




Total of adjustments


121,318



119,092



88,997



127,231



545



455



457,638



















Adjusted Operating Income (Loss)


$

41,024



$

18,621



$

(6,743)



$

4,664



$

40,043



$

(86,530)



$

11,079



















Revenue


$

378,621



$

377,520



$

221,306



$

172,631



$

253,549





$

1,403,627


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


(21)

%


(27)

%


(43)

%


(71)

%


16

%




(32)

%

Operating income (loss) %
using adjusted amounts


11

%


5

%


(3)

%


3

%


16

%




1

%





EBITDA and Adjusted EBITDA and Margins by Segment






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 September 30, 2020





SSR


MP


OPG


IMDS


ADTech


Unallocated
Expenses
and other


Total





($ in thousands)

Operating Income (Loss) as
reported in accordance with
GAAP


$

2,127



$

(38,198)



$

(12,282)



$

793



$

13,097



$

(26,157)



$

(60,620)


Adjustments for the effects of:















Depreciation and amortization


25,144



44,028



15,147



866



654



1,712



87,551



Other pre-tax


-



-



-



-



-



(2,388)



(2,388)



EBITDA


27,271



5,830



2,865



1,659



13,751



(26,833)



24,543


Adjustments for the effects of:















Inventory write-downs


7,038



-



-



-



-



-



7,038



Restructuring expenses and
other


2,535



2,559



5,326



83



545



-



11,048



Foreign currency (gains)
losses


-



-



-



-



-



2,462



2,462




Total of adjustments


9,573



2,559



5,326



83



545



2,462



20,548


Adjusted EBITDA


$

36,844



$

8,389



$

8,191



$

1,742



$

14,296



$

(24,371)



$

45,091



















Revenue


$

119,617



$

110,416



$

73,212



$

53,933



$

82,565





$

439,743


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


2

%


(35)

%


(17)

%


1

%


16

%




(14)

%

EBITDA Margin


23

%


5

%


4

%


3

%


17

%




6

%

Adjusted EBITDA Margin


31

%


8

%


11

%


3

%


17

%




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 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

%






















For the Nine Months Ended September 30, 2020





SSR


MP


OPG


IMDS


ADTech


Unallocated
Expenses
and other


Total





($ in thousands)

Operating Income (Loss) as
reported in accordance with
GAAP


$

(80,294)



$

(100,471)



$

(95,740)



$

(122,567)



$

39,498



$

(86,985)



$

(446,559)


Adjustments for the effects of:















Depreciation and
amortization


189,411



63,579



98,309



125,966



1,999



3,181



482,445



Other pre-tax


-



-



-



-



-



(11,305)



(11,305)



EBITDA


109,117



(36,892)



2,569



3,399



41,497



(95,109)



24,581


Adjustments for the effects of:















Long-lived assets
impairments


-



61,074



7,522



167



-



-



68,763



Inventory write-downs


7,038



-



-



-



-



-



7,038



Restructuring expenses
and other


4,834



5,755



7,947



3,850



545



455



23,386



Foreign currency (gains)
losses


-



-



-



-



-



13,420



13,420




Total of adjustments


11,872



66,829



15,469



4,017



545



13,875



112,607


Adjusted EBITDA


$

120,989



$

29,937



$

18,038



$

7,416



$

42,042



$

(81,234)



$

137,188



















Revenue


$

378,621



$

377,520



$

221,306



$

172,631



$

253,549





$

1,403,627


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


(21)

%


(27)

%


(43)

%


(71)

%


16

%




(32)

%

EBITDA Margin


29

%


(10)

%


1

%


2

%


16

%




2

%

Adjusted EBITDA Margin


32

%


8

%


8

%


4

%


17

%




10

%

































Cision View original content:https://www.prnewswire.com/news-releases/oceaneering-reports-third-quarter-2021-results-301410251.html

SOURCE Oceaneering International, Inc.