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Oil States Announces Fourth Quarter 2021 Results of Operations
ソース: Nasdaq GlobeNewswire / 16 2 2022 20:00:00 America/New_York
HOUSTON, Feb. 16, 2022 (GLOBE NEWSWIRE) -- Oil States International, Inc. (NYSE: OIS) reported a net loss of $19.9 million, or $0.33 per share, for the fourth quarter of 2021. The reported results included: non-cash impairment charges of $2.2 million ($1.7 million after tax, or $0.03 per share) related to write-downs of inventories and fixed assets; severance and restructuring charges of $0.8 million ($0.6 million after-tax, or $0.01 per share); and a non-cash foreign currency translation loss of $9.3 million ($9.3 million after-tax, or $0.15 per share) reclassified from other comprehensive income upon exit of the Company's Argentinian operation. After excluding these charges, the Company's adjusted net loss was $8.2 million, or $0.14 per share.
During the fourth quarter of 2021, the Company generated revenues of $161.3 million and Adjusted Consolidated EBITDA (Note A) of $13.4 million. These results compare to revenues of $140.5 million and Adjusted Consolidated EBITDA of $8.5 million reported in the third quarter of 2021.
Fourth quarter 2021 highlights included:
- Offshore/Manufactured Products segment revenue and Adjusted Segment EBITDA (Note B) increased sequentially 34% and 59%, respectively, driven by a 72% increase in project-related revenue
- Offshore/Manufactured Products backlog increased $11 million to $260 million, with a book-to-bill ratio of 1.1x, augmented by one notable project award exceeding $10 million
- Well Site Services Adjusted Segment EBITDA increased sequentially to $6.2 million despite a modest seasonal reduction in revenue
Oil States' President and Chief Executive Officer, Cindy B. Taylor, stated,
"Our consolidated revenues and Adjusted Consolidated EBITDA increased sequentially by 15% and 57%, respectively, despite global challenges associated with the COVID-19 pandemic, supply chain disruptions and a modest seasonal decline in U.S. customer completion activity in the Northeast.
"Revenues in our Offshore/Manufactured Products segment led the growth, with a 34% sequential increase driven primarily by higher sales of project-driven production, testing and connector products. Adjusted Segment EBITDA for Offshore/Manufactured Products increased $5.1 million, or 59%, sequentially totaling $13.7 million, reflective of the revenue growth. Backlog grew to $260 million at December 31, 2021 with quarterly bookings of $105 million, yielding book-to-bill ratios of 1.1x for the fourth quarter and 1.2x for the full-year 2021.
"Our Well Site Services segment revenues decreased 6% from the prior quarter due to a seasonal decline in customer activity in our U.S. Rocky Mountain and Northeast regions coupled with slower activity stemming from ongoing infrastructure repairs by operators in the Gulf of Mexico following Hurricane Ida. However, Adjusted Segment EBITDA increased sequentially for the fifth consecutive quarter, given a more favorable revenue mix and the benefit of cost control measures.
"Fourth quarter revenues in our Downhole Technologies segment were up modestly from the third quarter, driven by higher sales of our domestic perforating products.
"We continue to focus on delivering superior products and services to our customers, which are expected to provide sustainable returns to the Company and its stakeholders as industry activity continues to recover from the harsh effects of the COVID-19 pandemic. We are focused on profitable product and service lines and will allocate capital accordingly. With this focus, stockholders' returns should continue to improve."
For the year ended December 31, 2021, the Company reported a net loss of $64.0 million, or $1.06 per share, revenues of $573.2 million and Adjusted Consolidated EBITDA of $38.1 million. The full-year 2021 results included: non-cash impairment charges of $7.7 million ($6.1 million after-tax, or $0.10 per share) related to write-downs of inventories and fixed and lease assets; severance and restructuring charges of $7.5 million ($5.9 million after-tax, or $0.10 per share); a non-cash foreign currency translation loss of $9.3 million ($9.3 million after-tax, or $0.15 per share) reclassified from other comprehensive income upon exit of the Company's Argentinian operation; and non-cash gains of $4.0 million ($3.2 million after-tax, or $0.05 per share) associated with debt extinguishments. After excluding these charges and credits, the Company’s adjusted net loss was $45.8 million, or $0.76 per share.
BUSINESS SEGMENT RESULTS
(See Segment Data tables)
Offshore/Manufactured Products
Offshore/Manufactured Products reported revenues of $92.2 million and Adjusted Segment EBITDA of $13.7 million in the fourth quarter of 2021, compared to revenues of $69.0 million and Adjusted Segment EBITDA of $8.6 million reported in the third quarter of 2021. Revenues increased 34% sequentially, driven primarily by increases in project-driven and service revenues of 72% and 17%, respectively. Adjusted Segment EBITDA margin in the fourth quarter of 2021 was 15%, compared to 12% in the third quarter of 2021.
Backlog totaled $260 million as of December 31, 2021, a 4% sequential increase from September 30, 2021. During the fourth quarter of 2021, the segment received one notable project award exceeding $10 million. Fourth quarter 2021 bookings totaled $105 million, yielding a quarterly book-to-bill ratio of 1.1x and a full-year ratio of 1.2x.
Well Site Services
Well Site Services reported revenues of $43.3 million and Adjusted Segment EBITDA of $6.2 million in the fourth quarter of 2021, compared to revenues of $46.0 million and Adjusted Segment EBITDA of $5.9 million reported in the third quarter of 2021. Adjusted Segment EBITDA margin the fourth quarter of 2021 was 14%, compared to 13% in the third quarter of 2021.
In the fourth quarter of 2021, the segment recorded non-cash inventory and fixed asset impairment charges of $2.2 million due to the decision to exit certain non-performing service lines.
Downhole Technologies
Downhole Technologies reported revenues of $25.8 million and Adjusted Segment EBITDA of $0.1 million in the fourth quarter of 2021, compared to revenues of $25.5 million and Adjusted Segment EBITDA of $1.4 million reported in the third quarter of 2021. During the fourth quarter 2021, the segment recorded bad debt expense of $0.7 million on a receivable from a customer which announced liquidation in January 2022. Adjusted Segment EBITDA margin in the fourth quarter of 2021 was 1%, compared to 6% in the third quarter of 2021.
Corporate
Corporate operating expenses in the fourth quarter of 2021 totaled $6.7 million.
Interest Expense, Net
Net interest expense totaled $2.6 million in the fourth quarter of 2021, which included $0.5 million of non-cash amortization of deferred debt issuance costs.
Other Income (Expense), Net
In the fourth quarter of 2021, the Company recognized a $9.3 million non-cash loss associated with the reclassification of unrealized foreign currency translation adjustments to net income (loss), which were released upon the liquidation of the Company's Argentinian operation. An offsetting non-cash benefit was recognized as other comprehensive income in the fourth quarter.
Income Taxes
The Company recognized an effective tax rate benefit of 1% in the fourth quarter of 2021, which compared to an effective tax rate benefit of 21% in the third quarter of 2021. The effective tax rate benefit for the fourth quarter of 2021 was below the U.S. statutory rate primarily due to certain non-deductible expenses, including the non-cash currency translation loss.
Financial Condition
No borrowings were outstanding under the Company's asset-based revolving credit facility (the "ABL Facility") at December 31, 2021. Cash totaled $52.9 million, compared to $67.6 million at September 30, 2021. Liquidity (cash plus borrowing availability) totaled $101.7 million at December 31, 2021 with amounts available to be drawn under the ABL Facility totaling $48.9 million.
The Company's total debt represented 20% of combined total debt and stockholders' equity as of December 31, 2021 and 2020.
Conference Call Information
The call is scheduled for February 17, 2022 at 9:00 a.m. central standard time, is being webcast and can be accessed from the Company's website at www.ir.oilstatesintl.com. Participants may also join the conference call by dialing 1 (888) 771-4371 in the United States or by dialing +1 (847) 585-4405 internationally and using the passcode 50277012. A replay of the conference call will be available one and a half hours after the completion of the call and can be accessed from the Company's website at www.ir.oilstatesintl.com.
About Oil States
Oil States International, Inc. is a global provider of manufactured products and services to customers in the energy, industrial and military sectors. The Company's manufactured products include highly engineered capital equipment and consumable products. Oil States is headquartered in Houston, Texas with manufacturing and service facilities strategically located across the globe. Oil States is publicly traded on the New York Stock Exchange under the symbol "OIS".
For more information on the Company, please visit Oil States International's website at www.oilstatesintl.com.
Forward Looking Statements
The foregoing contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements included herein are based on current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Such risks and uncertainties include, among others, the level of supply of and demand for oil and natural gas, fluctuations in the prices thereof, the cyclical nature of the oil and natural gas industry, the impact of the COVID-19 pandemic on the Company and its customers, the other risks associated with the general nature of the energy service industry and other factors discussed in the "Business" and "Risk Factors" sections of the Company's Annual Report on Form 10-K for the year ended December 31, 2020 and the subsequently filed Periodic Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof, and, except as required by law, the Company undertakes no obligation to update those statements or to publicly announce the results of any revisions to any of those statements to reflect future events or developments.
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)Three Months Ended Year Ended December 31,
2021September 30,
2021December 31,
2020December 31,
2021December 31,
2020(Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues: Products $ 89,401 $ 70,409 $ 73,051 $ 299,293 $ 331,272 Services 71,919 70,119 64,326 273,868 306,803 161,320 140,528 137,377 573,161 638,075 Costs and expenses: Product costs 72,890 60,310 62,992 246,589 287,615 Service costs 60,357 56,897 52,517 223,807 274,190 Cost of revenues (exclusive of depreciation and
amortization expense presented below)(1)133,247 117,207 115,509 470,396 561,805 Selling, general and administrative expense 20,297 20,078 22,597 83,692 94,102 Depreciation and amortization expense 18,655 19,657 23,237 80,741 98,543 Impairments of goodwill — — — — 406,056 Impairments of fixed and lease assets 722 — 4,257 4,166 12,447 Other operating income, net (328 ) (275 ) 141 (1,042 ) (538 ) 172,593 156,667 165,741 637,953 1,172,415 Operating loss (11,273 ) (16,139 ) (28,364 ) (64,792 ) (534,340 ) Interest expense, net (2,577 ) (2,569 ) (2,637 ) (10,170 ) (13,869 ) Other income (expense), net(2) (6,289 ) 2,137 368 1,628 13,880 Loss before income taxes (20,139 ) (16,571 ) (30,633 ) (73,334 ) (534,329 ) Income tax benefit 269 3,529 11,886 9,341 65,946 Net loss $ (19,870 ) $ (13,042 ) $ (18,747 ) $ (63,993 ) $ (468,383 ) Net loss per share: Basic $ (0.33 ) $ (0.22 ) $ (0.31 ) $ (1.06 ) $ (7.83 ) Diluted $ (0.33 ) $ (0.22 ) $ (0.31 ) $ (1.06 ) $ (7.83 ) Weighted average number of common shares outstanding: Basic 60,380 60,377 59,885 60,293 59,812 Diluted 60,380 60,377 59,885 60,293 59,812 ________________
(1) In the three months and year ended December 31, 2021, cost of revenues (exclusive of depreciation and amortization expense) included non-cash inventory impairment charges of $1.5 million (in service costs) and $3.6 million ($2.1 million in product costs and $1.5 million in service costs), respectively. For the three months and year ended December 31, 2020, cost of revenues (exclusive of depreciation and amortization expense) included non-cash inventory impairment charges of $5.9 million (in product costs) and $31.2 million ($17.9 million in product costs and $13.3 million in service costs), respectively.
(2) Other income (expense), net in the three months and year ended December 31, 2021 included a non-cash loss of $9.3 million associated with the reclassification of unrealized foreign currency translation adjustments which were released upon the liquidation of an international operation. Additionally, for the year ended December 31, 2021, non-cash gains of $4.0 million were recognized in connection with purchases of $131.4 million principal amount of the 2023 Notes. For the year ended December 31, 2020, non-cash gains of $10.7 million were recognized in connection with the purchases of $34.9 million in principal amount of the 2023 Notes.
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands)December 31, 2021 December 31, 2020 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 52,852 $ 72,011 Accounts receivable, net 186,080 163,135 Inventories, net 168,573 170,376 Prepaid expenses and other current assets 19,222 18,071 Total current assets 426,727 423,593 Property, plant, and equipment, net 338,583 383,562 Operating lease assets, net 25,388 33,140 Goodwill, net 76,412 76,489 Other intangible assets, net 185,749 205,749 Other noncurrent assets 32,889 29,727 Total assets $ 1,085,748 $ 1,152,260 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 18,262 $ 17,778 Accounts payable 63,343 46,433 Accrued liabilities 43,401 44,504 Current operating lease liabilities 6,481 7,620 Income taxes payable 2,564 2,413 Deferred revenue 43,236 43,384 Total current liabilities 177,287 162,132 Long-term debt 160,488 165,759 Long-term operating lease liabilities 23,452 29,166 Deferred income taxes 3,637 14,263 Other noncurrent liabilities 25,058 23,309 Total liabilities 389,922 394,629 Stockholders' equity: Common stock 739 733 Additional paid-in capital 1,105,135 1,122,945 Retained earnings 281,567 329,327 Accumulated other comprehensive loss (66,031 ) (71,385 ) Treasury stock (625,584 ) (623,989 ) Total stockholders' equity 695,826 757,631 Total liabilities and stockholders' equity $ 1,085,748 $ 1,152,260 OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)Year Ended December 31, 2021 2020 (Unaudited) Cash flows from operating activities: Net loss $ (63,993 ) $ (468,383 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization expense 80,741 98,543 Impairments of goodwill — 406,056 Impairments of inventories 3,581 31,151 Impairments of fixed and lease assets 4,166 12,447 Stock-based compensation expense 7,879 8,431 Amortization of debt discount and deferred financing costs 2,314 7,736 Deferred income tax benefit (8,639 ) (24,404 ) Release of foreign currency translation adjustments on liquidation of an international operation 9,320 — Gains on extinguishment of 1.50% convertible senior notes (4,022 ) (10,721 ) Gains on disposals of assets (6,472 ) (2,444 ) Other, net (511 ) 4,668 Changes in operating assets and liabilities: Accounts receivable (24,407 ) 63,876 Inventories (10,334 ) 17,578 Accounts payable and accrued liabilities 17,727 (37,315 ) Deferred revenue (148 ) 25,549 Other operating assets and liabilities, net (8 ) (13 ) Net cash flows provided by operating activities 7,194 132,755 Cash flows from investing activities: Capital expenditures (17,517 ) (12,749 ) Proceeds from disposition of property and equipment 11,527 9,601 Other, net (636 ) (581 ) Net cash flows used in investing activities (6,626 ) (3,729 ) Cash flows from financing activities: Revolving credit facility borrowings 12,873 72,173 Revolving credit facility repayments (31,873 ) (105,104 ) Issuance of 4.75% convertible senior notes 135,000 — Purchases of 1.50% convertible senior notes (125,952 ) (20,078 ) Other debt and finance lease repayments, net (230 ) (8,222 ) Payment of financing costs (7,791 ) (1,041 ) Shares added to treasury stock as a result of net share settlements
due to vesting of stock awards(1,595 ) (2,745 ) Net cash flows used in financing activities (19,568 ) (65,017 ) Effect of exchange rate changes on cash and cash equivalents (159 ) (491 ) Net change in cash and cash equivalents (19,159 ) 63,518 Cash and cash equivalents, beginning of period 72,011 8,493 Cash and cash equivalents, end of period $ 52,852 $ 72,011 Cash paid (received) for: Interest $ 6,532 $ 6,402 Income taxes, net 152 (36,766 ) OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
SEGMENT DATA
(In Thousands)
(unaudited)Three Months Ended Year Ended December 31,
2021(2)September 30,
2021(3)December 31,
2020(4)December 31,
2021(5)December 31,
2020(6)Revenues: Offshore/Manufactured Products(1): Project-driven products $ 43,603 $ 25,294 $ 36,340 $ 122,097 $ 165,497 Short-cycle products 18,212 18,682 6,808 65,174 48,142 Other products and services 30,394 25,027 32,370 111,458 126,661 Total Offshore/Manufactured Products 92,209 69,003 75,518 298,729 340,300 Downhole Technologies 25,775 25,527 23,193 103,492 97,936 Well Site Services 43,336 45,998 38,666 170,940 199,839 Total revenues $ 161,320 $ 140,528 $ 137,377 $ 573,161 $ 638,075 Operating income (loss): Offshore/Manufactured Products $ 7,802 $ 1,764 $ 1,408 $ 15,447 $ (80,794 ) Downhole Technologies (4,525 ) (5,035 ) (8,019 ) (13,470 ) (224,414 ) Well Site Services (7,818 ) (5,250 ) (11,642 ) (34,511 ) (193,388 ) Corporate (6,732 ) (7,618 ) (10,111 ) (32,258 ) (35,744 ) Total operating loss $ (11,273 ) $ (16,139 ) $ (28,364 ) $ (64,792 ) $ (534,340 ) ________________
(1) Disaggregated revenue data is provided to supplement the Segment Data.
(2) Operating income (loss) for the three months ended December 31, 2021 included $0.3 million of severance and restructuring charges related to the Offshore/Manufactured Products segment. In the Downhole Technologies segment, operating income (loss) included severance and restructuring charges of $0.2 million. In the Well Site Services segment, operating income (loss) included non-cash inventory and fixed asset impairment charges of $1.5 million and $0.7 million, respectively, and severance and restructuring charges of $0.3 million.
(3) Operating income (loss) for the three months ended September 30, 2021 included $0.3 million of severance and restructuring charges related to the Offshore/Manufactured Products segment. In the Downhole Technologies segment, operating income (loss) included a non-cash inventory impairment charge of $2.1 million and severance and restructuring charges of $0.1 million. In the Well Site Services segment, operating income (loss) included severance and restructuring charges of $0.4 million.
(4) Operating income (loss) for the three months ended December 31, 2020 included $0.6 million of severance and restructuring charges in the Offshore/Manufactured Products segment. In the Downhole Technologies segment, operating income (loss) included non-cash fixed and lease asset impairment charges of $3.6 million and severance and restructuring charges of $0.7 million. In the Well Site Services segment, operating income (loss) included a non-cash fixed asset impairment charge of $0.7 million and severance and restructuring charges of $0.2 million. In Corporate, operating income (loss) included $1.2 million of severance charges.
(5) Operating income (loss) for the year ended December 31, 2021 included $0.9 million of severance and restructuring charges related to the Offshore/Manufactured Products segment. In the Downhole Technologies segment, operating income (loss) included a non-cash inventory impairment charge of $2.1 million and severance and restructuring charges of $0.8 million. In the Well Site Services segment, operating income (loss) included non-cash fixed asset and operating lease impairment charges of $4.2 million, a non-cash inventory impairment charge of $1.5 million and severance and restructuring charges of $4.3 million. In Corporate, operating income (loss) included $1.6 million of severance charges.
(6) Operating income (loss) for the year ended December 31, 2020 included a non-cash goodwill impairment charge of $86.5 million, a non-cash inventory impairment charge of $16.2 million and $1.4 million of severance and restructuring charges related to the Offshore/Manufactured Products segment. In the Downhole Technologies segment, operating income (loss) included a non-cash goodwill impairment charge of $192.5 million, a non-cash inventory impairment charge of $5.9 million, non-cash fixed asset and lease impairment charges of $3.6 million and $2.0 million of severance and restructuring charges. In the Well Site Services segment, operating income (loss) included a non-cash goodwill impairment charge of $127.1 million, a non-cash inventory impairment charge of $9.0 million, non-cash fixed asset impairment charges of $8.8 million and $4.3 million of severance and restructuring charges. In Corporate, operating income (loss) included $1.4 million of severance charges.
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
SEGMENT EBITDA AND ADJUSTED SEGMENT EBITDA (B)
(In Thousands)
(unaudited)Three Months Ended Year Ended December 31,
2021September 30,
2021December 31,
2020December 31
2021December 31,
2020Offshore/Manufactured Products: Operating income (loss) $ 7,802 $ 1,764 $ 1,408 $ 15,447 $ (80,794 ) Other income, net 21 881 82 770 542 Depreciation and amortization expense 5,502 5,662 5,376 22,190 21,881 Impairment of goodwill — — — — 86,500 Impairment of inventories — — — — 16,249 Segment EBITDA 13,325 8,307 6,866 38,407 44,378 Severance and restructuring charges 330 256 633 868 1,355 Adjusted Segment EBITDA $ 13,655 $ 8,563 $ 7,499 $ 39,275 $ 45,733 Downhole Technologies: Operating loss $ (4,525 ) $ (5,035 ) $ (8,019 ) $ (13,470 ) $ (224,414 ) Other income (expense), net — (4 ) 16 (6 ) (81 ) Depreciation and amortization expense 4,455 4,226 5,745 17,591 22,649 Impairment of goodwill — — — — 192,502 Impairment of inventories — 2,113 — 2,113 5,921 Impairment of fixed and lease assets — — 3,602 — 3,602 Segment EBITDA (70 ) 1,300 1,344 6,228 179 Severance and restructuring charges 202 129 703 809 2,018 Adjusted Segment EBITDA $ 132 $ 1,429 $ 2,047 $ 7,037 $ 2,197 Well Site Services: Operating loss $ (7,818 ) $ (5,250 ) $ (11,642 ) $ (34,511 ) $ (193,388 ) Other income 3,010 1,260 270 6,162 2,698 Depreciation and amortization expense 8,511 9,531 11,906 40,152 53,240 Impairment of goodwill — — — — 127,054 Impairments of inventories 1,468 — — 1,468 8,981 Impairments of fixed and lease assets 722 — 655 4,166 8,845 Segment EBITDA 5,893 5,541 1,189 17,437 7,430 Severance and restructuring charges 257 352 219 4,266 4,311 Adjusted Segment EBITDA $ 6,150 $ 5,893 $ 1,408 $ 21,703 $ 11,741 Corporate: Operating loss $ (6,732 ) $ (7,618 ) $ (10,111 ) $ (32,258 ) $ (35,744 ) Other income (expense) (9,320 ) — — (5,298 ) 10,721 Depreciation and amortization expense 187 238 210 808 773 Release of foreign currency translation adjustments on
liquidation of an international operation9,320 — — 9,320 — Gains on extinguishment of debt — — — (4,022 ) (10,721 ) EBITDA (6,545 ) (7,380 ) (9,901 ) (31,450 ) (34,971 ) Severance charges — — 1,169 1,555 1,385 Adjusted EBITDA $ (6,545 ) $ (7,380 ) $ (8,732 ) $ (29,895 ) $ (33,586 ) OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
CONSOLIDATED EBITDA AND ADJUSTED CONSOLIDATED EBITDA (A)
(In Thousands)
(unaudited)Three Months Ended Year Ended December 31,
2021September 30,
2021December 31,
2020December 31,
2021December 31,
2020Net loss $ (19,870 ) $ (13,042 ) $ (18,747 ) $ (63,993 ) $ (468,383 ) Interest expense, net 2,577 2,569 2,637 10,170 13,869 Income tax benefit (269 ) (3,529 ) (11,886 ) (9,341 ) (65,946 ) Depreciation and amortization expense 18,655 19,657 23,237 80,741 98,543 Impairments of goodwill — — — — 406,056 Impairments of inventories 1,468 2,113 — 3,581 31,151 Impairments of fixed and lease assets 722 — 4,257 4,166 12,447 Release of foreign currency translation adjustments on
liquidation of an international operation9,320 — — 9,320 — Gains on extinguishment of 1.50% convertible senior notes — — — (4,022 ) (10,721 ) Consolidated EBITDA 12,603 7,768 (502 ) 30,622 17,016 Severance and restructuring charges 789 737 2,724 7,498 9,069 Adjusted Consolidated EBITDA $ 13,392 $ 8,505 $ 2,222 $ 38,120 $ 26,085 ________________
(A) The terms Consolidated EBITDA and Adjusted Consolidated EBITDA consist of net loss plus net interest expense, taxes, depreciation and amortization expense, non-cash asset impairment charges and a non-cash loss associated with the reclassification of unrealized foreign currency translation adjustments which were released upon the liquidation of an international operation, less gains on extinguishment of 1.50% convertible senior notes (the "2023 Notes") and adjustments for certain other items. Consolidated EBITDA and Adjusted Consolidated EBITDA are not measures of financial performance under generally accepted accounting principles and should not be considered in isolation from or as a substitute for net loss or cash flow measures prepared in accordance with generally accepted accounting principles or as measures of profitability or liquidity. Additionally, Consolidated EBITDA and Adjusted Consolidated EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included Consolidated EBITDA and Adjusted Consolidated EBITDA as supplemental disclosures because its management believes that Consolidated EBITDA and Adjusted Consolidated EBITDA provide useful information regarding its ability to service debt and to fund capital expenditures and provides investors a helpful measure for comparing its operating performance with the performance of other companies that have different financing and capital structures or tax rates. The Company uses Consolidated EBITDA and Adjusted Consolidated EBITDA to compare and to monitor the performance of the Company and its business segments to other comparable public companies and as a benchmark for the award of incentive compensation under its annual incentive compensation plan. The table above sets forth reconciliations of Consolidated EBITDA and Adjusted Consolidated EBITDA to net loss, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles.
(B) The terms EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment EBITDA consist of operating income (loss) plus other income (expense), depreciation and amortization expense, non-cash asset impairment charges and a non-cash loss associated with the reclassification of unrealized foreign currency translation adjustments which were released upon the liquidation of an international operation, less gains on extinguishment of the 2023 Notes and adjustments for certain other items. EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment EBITDA are not measures of financial performance under generally accepted accounting principles and should not be considered in isolation from or as a substitute for operating income (loss) or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. Additionally, EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment EBITDA as supplemental disclosures because its management believes that EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment EBITDA provide useful information regarding its ability to service debt and to fund capital expenditures and provides investors a helpful measure for comparing its operating performance with the performance of other companies that have different financing and capital structures or tax rates. The Company uses EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment EBITDA to compare and to monitor the performance of its business segments to other comparable public companies and as a benchmark for the award of incentive compensation under its annual incentive compensation plan. The tables above set forth reconciliations of EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment EBITDA to operating income (loss), which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles.
Company Contact:
Lloyd A. Hajdik
Oil States International, Inc.
Executive Vice President, Chief Financial Officer and Treasurer
713-652-0582
SOURCE: Oil States International, Inc.
