8-K
OCEANEERING INTERNATIONAL INC (OII)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 28, 2020
OCEANEERING INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 1-10945 | 95-2628227 | |||||
|---|---|---|---|---|---|---|---|
| (State or other jurisdiction<br>of incorporation) | (Commission<br>File Number) | (IRS Employer<br>Identification No.) | 11911 FM 529 | ||||
| --- | --- | --- | --- | ||||
| Houston, | TX | 77041 | |||||
| (Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: (713) 329-4500
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common stock, par value $0.25 per share | OII | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2):
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On October 28, 2020, Oceaneering International, Inc. ("Oceaneering" or "we") issued a press release announcing Oceaneering's earnings for the third quarter ended September 30, 2020. A copy of that press release is furnished as Exhibit 99.1 to this report and is incorporated by reference into this item 2.02.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any registration statement or other filing under the Securities Act of 1933, as amended, or the Exchange Act, unless specifically identified in such filing as being incorporated by reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| 99.1 | Press Release of Oceaneering International, Inc., dated October 28, 2020. |
|---|---|
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document.) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| OCEANEERING INTERNATIONAL, INC. | |||
|---|---|---|---|
| Date: | October 28, 2020 | By: | /S/ WITLAND J. LEBLANC, JR. |
| Witland J. LeBlanc, Jr. | |||
| Vice President and Chief Accounting Officer |
Document
Exhibit 99.1
Oceaneering Reports Third Quarter 2020 Results
HOUSTON, October 28, 2020 – Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today reported a net loss of $79.4 million, or $(0.80) per share, on revenue of $440 million for the three months ended September 30, 2020. Adjusted net loss was $17.6 million, or $(0.18) per share, reflecting the impact of $68.7 of pre-tax adjustments associated with goodwill impairment, write-offs of fixed assets, inventory write-downs, restructuring expenses, and foreign exchange losses recognized during the quarter and $6.3 million of discrete tax adjustments.
During the prior quarter ended June 30, 2020, Oceaneering reported a net loss of $24.8 million, or $(0.25) per share, on revenue of $427 million. Adjusted net loss was $14.2 million, or $(0.14) per share, reflecting the impact of $9.6 million of pre-tax adjustments associated with restructuring expenses and foreign exchange losses recognized during the quarter and $3.3 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 EBITDA Margins, 2020 Adjusted EBITDA Estimates, Free Cash Flow, Adjusted Operating Income (Loss) and Margins by Segment, and EBITDA and Adjusted EBITDA and Margins by Segment. These tables are included below under the caption Reconciliations of Non-GAAP to GAAP Financial Information.
| Summary of Results | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (in thousands, except per share amounts) | ||||||||||
| Three Months Ended | Nine Months Ended | |||||||||
| Sep 30, | Jun 30, | Sep 30, | ||||||||
| 2020 | 2019 | 2020 | 2020 | 2019 | ||||||
| Revenue | $ | 439,743 | $ | 497,647 | $ | 427,216 | $ | 1,403,627 | $ | 1,487,314 |
| Gross Margin | 29,651 | 49,061 | 42,537 | 118,940 | 118,631 | |||||
| Income (Loss) from Operations | (60,620) | (5,194) | (5,182) | (446,559) | (36,543) | |||||
| Net Income (Loss) | (79,365) | (25,523) | (24,788) | (471,751) | (85,532) | |||||
| Diluted Earnings (Loss) Per Share | $ | (0.80) | $ | (0.26) | $ | (0.25) | $ | (4.76) | $ | (0.87) |
Roderick A. Larson, President and Chief Executive Officer of Oceaneering, stated, "In September, we announced a realignment of our operating segments, and this is our first quarter to announce earnings under this new structure. The primary reason for adopting the new operating segments was to better leverage common synergies, thereby enabling productivity in how work is performed. We are seeing the results of these changes in our consolidated third quarter 2020 results. Despite continuing energy and entertainment market headwinds, we generated positive free cash flow, and both adjusted EBITDA and adjusted operating income improved as compared to the second quarter 2020. Overall, we were encouraged by the performance of our energy businesses and the stable contribution from our Aerospace and Defense Technologies (ADTech) segment.
"On a consolidated basis, we generated adjusted EBITDA of $45.1 million, exceeding the consensus estimate. Our consolidated adjusted operating income for the third quarter 2020 improved as efficiency gains from our cost-out efforts are meaningfully enhancing our bottom-line results. Sequentially, the adjusted operating results for each of our segments, except Subsea Robotics (SSR), improved as compared to the second quarter 2020. Each operating segment reported positive adjusted operating income and adjusted EBITDA. Our cash position of $359 million at September 30, 2020 increased by $25.3 million from June 30, 2020, as we generated $19.0 million of free cash flow, largely driven by positive contributions from operations and working capital, and ongoing capital conservation.
"Operationally, for the third quarter 2020, our SSR adjusted operating income decreased on flat revenue, primarily due to lower contributions from our tooling and survey businesses. Due to this lower contribution, SSR adjusted EBITDA margins declined slightly to 31% in the third quarter 2020 as compared to 32% in the second quarter 2020.
"Our third quarter 2020 remotely operated vehicle (ROV) performance was comparable with the second quarter 2020. As of September 30, 2020, our ROV fleet count was 250 systems, the same as June 30, 2020. Our fleet utilization during the third quarter 2020 was 59%, the same as the prior quarter. Sequentially, ROV days on hire were flat as well. Average ROV revenue per day on hire was marginally lower, declining 1% sequentially, primarily due to changes in geographic mix.
"Our ROV fleet use during the quarter was 56% in drill support and 44% in vessel-based activity. The decline in the number of working floating drilling rigs from the second quarter 2020 to third quarter 2020 led to fewer days on hire for our drill support services, which were offset by an increase in days on hire for vessel-based services. As of September 30, 2020, we had ROV contracts on 76 of the 133 floating rigs under contract, or 57%. As of June 30, 2020, we had ROV contracts on 86 of the 139 floating rigs under contract, or 62%. Subject to quarterly variances, we continue to expect our drill support market share to generally remain in the 60% range.
"Manufactured Products (MP) adjusted operating income during the third quarter 2020 was up slightly as compared to the second quarter 2020, on a 10% increase in revenue. Much of the revenue increase was attributable to percentage-of-completion revenue recognition on certain lower margin project components in our umbilical manufacturing business. During the third quarter, COVID-19 had limited impact on our energy manufacturing business, but continued to adversely affect manufacturing timing in our non-energy entertainment business.
“Overall, for year-to-date 2020, reduced order intake in our energy-related manufacturing business is primarily attributable to the significant decrease in final investment decisions undertaken by our oil and gas customers, due to low oil demand and pricing. Our MP backlog as of September 30, 2020 was $318 million, compared to our recast June 30, 2020 backlog of $380 million. Our book-to-bill ratio, year to date, was 0.4 and for the past twelve months was 0.5.
"Sequentially, Offshore Projects Group (OPG) third quarter adjusted operating results improved on flat revenue. Call-out work during the third quarter was relatively consistent with the second quarter 2020, with the improved operating results benefiting from the cost-outs and operating synergies implemented in connection with our new operating model. The impacts of COVID-19 continue to delay the Angola light well intervention project, but we are optimistic that this work will begin to move forward either late in the fourth quarter 2020 or early in the first quarter 2021. Integrity Management and Digital Solutions (IMDS) adjusted operating results were higher sequentially on flat revenue and improved execution.
"Our government-focused business, ADTech, reported slightly higher sequential adjusted operating income for the third quarter 2020 on slightly higher revenues. ADTech represented approximately 19% of our consolidated revenues during the third quarter of 2020 and we appreciate the relative stability of this business, considering the challenges we currently face in our energy businesses. Unallocated
Expenses for the third quarter 2020 declined sequentially, due primarily to lower accruals for incentive-based compensation.
"Looking forward, we believe our fourth quarter 2020 results will decline sequentially with the onset of lower seasonal offshore activity and customer budget exhaustion negatively affecting our energy businesses. Sequentially, we are projecting lower operating results in each of our segments, except Manufactured Products, which is expected to recognize higher revenue and operating income as a result of percentage-of-completion revenue and operating income recognition on certain projects. Unallocated Expenses are expected to approximate $30 million.
"For the full year of 2020, we expect to generate adjusted EBITDA in the range of $165 million to $175 million. We are narrowing our guidance range for capital expenditures to $50 million to $60 million. We affirm guidance for cash tax payments in the range of $30 million to $35 million, and our expectation of CARES Act and other tax refunds in the range of $16 million to $34 million. We continue to expect to generate positive free cash flow for the full year of 2020 and expect the fourth quarter of 2020 to benefit from positive working capital changes and the tax refunds mentioned above.
"We announced a plan at the end of the first quarter 2020 to reduce annualized expenses in the range of $125 million to $160 million by the end of 2020, inclusive of $35 million to $40 million of reduced depreciation expense. We estimate that, since launching this plan, approximately $100 million of annualized cost reductions have been initiated, exclusive of depreciation, with additional savings expected to be achieved through the fourth quarter of 2020. We continue to estimate the cash costs associated with these actions to approximate $15 million in 2020.
"We anticipate the oil sector will face continuing headwinds in 2021, due to uncertainties around demand recovery and the resulting softness in energy commodity prices. Despite this backdrop, we currently expect our consolidated activity levels and EBITDA performance in 2021 will closely resemble 2020. We also expect to generate significant free cash flow in 2021, which will also benefit from working capital release associated with final project milestone payments in our Manufactured Products segment. We will continue to review our forecast as we develop a definitive operating plan for 2021 and will update our expectations during the year-end reporting process.
"Preserving and improving our liquidity and balance sheet remain high priorities. The firm capital discipline policy we adopted in 2020 is showing tangible results, which we expect will provide meaningful free cash flow in the future."
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: estimated timing of commencement of the Angola light well intervention project; estimated future drill support market share; fourth quarter 2020 and full year 2020 segment operating results; forecasted fourth quarter Unallocated Expenses and annual guidance ranges for adjusted EBITDA, capital expenditures, cash tax payments, and CARES Act tax refunds; belief in generating positive free cash flow during 2020 with the fourth quarter benefiting from CARES Act tax refunds and positive working capital changes; estimate of annualized cost reductions initiated, expected additional savings to be achieved through the fourth quarter of 2020, and estimated cash costs associated with its 2020 plan to reduce annualized expenses; anticipated oil sector outlook; expected 2021 consolidated activity levels, EBITDA, and free cash flow; continued review and update of its forecast; and expectation of future free cash flow.
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 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 10Q 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
- Tables follow on next page -
| OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||
| Sep 30, 2020 | Dec 31, 2019 | |||||||||||
| (in thousands) | ||||||||||||
| ASSETS | ||||||||||||
| Current assets (including cash and cash equivalents of 358,777 and 373,655) | $ | 1,125,820 | $ | 1,244,436 | ||||||||
| Net property and equipment | 609,426 | 776,532 | ||||||||||
| Other assets | 302,454 | 719,695 | ||||||||||
| Total Assets | $ | 2,037,700 | $ | 2,740,663 | ||||||||
| LIABILITIES AND EQUITY | ||||||||||||
| Current liabilities | $ | 431,175 | $ | 600,956 | ||||||||
| Long-term debt | 805,631 | 796,516 | ||||||||||
| Other long-term liabilities | 241,475 | 267,782 | ||||||||||
| Equity | 559,419 | 1,075,409 | ||||||||||
| Total Liabilities and Equity | $ | 2,037,700 | $ | 2,740,663 | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| For the Three Months Ended | For the Nine Months Ended | |||||||||||
| Sep 30, 2020 | Sep 30, 2019 | Jun 30, 2020 | Sep 30, 2020 | Sep 30, 2019 | ||||||||
| (in thousands, except per share amounts) | ||||||||||||
| Revenue | $ | 439,743 | $ | 497,647 | $ | 427,216 | $ | 1,403,627 | $ | 1,487,314 | ||
| Cost of services and products | 410,092 | 448,586 | 384,679 | 1,284,687 | 1,368,683 | |||||||
| 29,651 | 49,061 | 42,537 | 118,940 | 118,631 | ||||||||
| Selling, general and administrative expense | 49,396 | 54,255 | 47,719 | 152,856 | 155,174 | |||||||
| Long-lived assets impairments | — | — | — | 68,763 | — | |||||||
| Goodwill impairment | 40,875 | — | — | 343,880 | — | |||||||
| (60,620) | (5,194) | (5,182) | (446,559) | (36,543) | ||||||||
| Interest income | 414 | 2,089 | 511 | 2,202 | 6,541 | |||||||
| Interest expense, net of amounts capitalized | (9,250) | (11,382) | (11,611) | (33,323) | (31,005) | |||||||
| Equity in income (losses) of unconsolidated affiliates | 131 | 554 | 674 | 2,002 | 390 | |||||||
| Other income (expense), net | (2,836) | (3,660) | (3,660) | (13,624) | (2,934) | |||||||
| (72,161) | (17,593) | (19,268) | (489,302) | (63,551) | ||||||||
| Provision (benefit) for income taxes | 7,204 | 7,930 | 5,520 | (17,551) | 21,981 | |||||||
| $ | (79,365) | $ | (25,523) | $ | (24,788) | $ | (471,751) | $ | (85,532) | |||
| Weighted average diluted shares outstanding | 99,297 | 98,930 | 99,273 | 99,209 | 98,858 | |||||||
| Diluted earnings (loss) per share | $ | (0.80) | $ | (0.26) | $ | (0.25) | $ | (4.76) | $ | (0.87) | ||
| 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. |
All values are in US Dollars.
| SEGMENT INFORMATION | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Nine Months Ended | |||||||||||||||||
| Sep 30, 2019 * | Jun 30, 2020 * | Sep 30, 2020 | Sep 30, 2019 * | ||||||||||||||
| ( in thousands) | |||||||||||||||||
| Subsea Robotics | |||||||||||||||||
| Revenue | 119,617 | $ | 151,492 | $ | 119,234 | $ | 378,621 | $ | 432,548 | ||||||||
| Gross margin | 13,378 | $ | 26,783 | $ | 21,324 | $ | 54,175 | $ | 65,829 | ||||||||
| Operating income (loss) | 2,127 | $ | 15,457 | $ | 11,662 | $ | (80,294) | $ | 33,277 | ||||||||
| Operating income (loss) % | % | 10 | % | 10 | % | (21) | % | 8 | % | ||||||||
| ROV Days available | 25,392 | 22,750 | 68,500 | 74,904 | |||||||||||||
| ROV Days utilized | 15,146 | 13,501 | 41,955 | 43,511 | |||||||||||||
| ROV Utilization | % | 60 | % | 59 | % | 61 | % | 58 | % | ||||||||
| Manufactured Products | |||||||||||||||||
| Revenue | 110,416 | $ | 114,487 | $ | 100,570 | $ | 377,520 | $ | 334,488 | ||||||||
| Gross margin | 11,242 | $ | 9,145 | $ | 13,679 | $ | 42,870 | $ | 32,076 | ||||||||
| Operating income (loss) | (38,198) | $ | (2,158) | $ | 3,865 | $ | (100,471) | $ | 1,070 | ||||||||
| Operating income (loss) % | % | (2) | % | 4 | % | (27) | % | — | % | ||||||||
| Backlog at end of period | 318,000 | $ | 582,000 | $ | 380,000 | $ | 318,000 | $ | 582,000 | ||||||||
| Offshore Projects Group | |||||||||||||||||
| Revenue | 73,212 | $ | 89,115 | $ | 73,840 | $ | 221,306 | $ | 289,193 | ||||||||
| Gross margin | (1,633) | $ | 8,337 | $ | 3,170 | $ | 3,632 | $ | 20,163 | ||||||||
| Operating income (loss) | (12,282) | $ | (34) | $ | (4,135) | $ | (95,740) | $ | (2,792) | ||||||||
| Operating income (loss) % | % | — | % | (6) | % | (43) | % | (1) | % | ||||||||
| Integrity Management & Digital Solutions | |||||||||||||||||
| Revenue | 53,933 | $ | 65,332 | $ | 53,969 | $ | 172,631 | $ | 198,057 | ||||||||
| Gross margin | 7,129 | $ | 6,612 | $ | 5,455 | $ | 22,376 | $ | 21,494 | ||||||||
| Operating income (loss) | 793 | $ | (1,721) | $ | (1,825) | $ | (122,567) | $ | (3,669) | ||||||||
| Operating income (loss) % | % | (3) | % | (3) | % | (71) | % | (2) | % | ||||||||
| Aerospace and Defense Technologies | |||||||||||||||||
| Revenue | 82,565 | $ | 77,221 | $ | 79,603 | $ | 253,549 | $ | 233,028 | ||||||||
| Gross margin | 16,668 | $ | 15,960 | $ | 17,313 | $ | 51,466 | $ | 43,234 | ||||||||
| Operating income (loss) | 13,097 | $ | 11,709 | $ | 13,430 | $ | 39,498 | $ | 30,214 | ||||||||
| Operating income (loss) % | % | 15 | % | 17 | % | 16 | % | 13 | % | ||||||||
| Unallocated Expenses | |||||||||||||||||
| Gross margin | (17,133) | $ | (17,776) | $ | (18,404) | $ | (55,579) | $ | (64,165) | ||||||||
| Operating income (loss) | (26,157) | $ | (28,447) | $ | (28,179) | $ | (86,985) | $ | (94,643) | ||||||||
| Total | |||||||||||||||||
| Revenue | 439,743 | $ | 497,647 | $ | 427,216 | $ | 1,403,627 | $ | 1,487,314 | ||||||||
| Gross margin | 29,651 | $ | 49,061 | $ | 42,537 | $ | 118,940 | $ | 118,631 | ||||||||
| Operating income (loss) | (60,620) | $ | (5,194) | $ | (5,182) | $ | (446,559) | $ | (36,543) | ||||||||
| Operating income (loss) % | % | (1) | % | (1) | % | (32) | % | (2) | % | ||||||||
| The above Segment Information does not include adjustments for non-recurring transactions. See the tables in our Reconciliations of Non-GAAP to GAAP Financial Information section for financial measures that management considers representative of our ongoing operations. | |||||||||||||||||
| * Recast to reflect segment changes. |
All values are in US Dollars.
| SELECTED CASH FLOW INFORMATION | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | For the Nine Months Ended | |||||||||
| Sep 30, 2020 | Sep 30, 2019 | Jun 30, 2020 | Sep 30, 2020 | Sep 30, 2019 | ||||||
| (in thousands) | ||||||||||
| Capital Expenditures, including Acquisitions | $ | 7,980 | $ | 57,985 | $ | 10,631 | $ | 45,840 | 128,847 | |
| For the Three Months Ended | For the Nine Months Ended | |||||||||
| Sep 30, 2020 | Sep 30, 2019 * | Jun 30, 2020 * | Sep 30, 2020 | Sep 30, 2019 * | ||||||
| (in thousands) | ||||||||||
| Depreciation and amortization: | ||||||||||
| Energy Services and Products | ||||||||||
| $ | 25,144 | $ | 31,090 | $ | 25,080 | $ | 189,411 | $ | 95,917 | |
| 44,028 | 4,920 | 3,587 | 63,579 | 14,953 | ||||||
| 15,147 | 10,610 | 8,255 | 98,309 | 30,758 | ||||||
| 866 | 2,087 | 757 | 125,966 | 6,170 | ||||||
| Total Energy Services and Products | 85,185 | 48,707 | 37,679 | 477,265 | 147,798 | |||||
| Aerospace and Defense Technologies | 654 | 640 | 658 | 1,999 | 1,998 | |||||
| Unallocated Expenses | 1,712 | 1,220 | 361 | 3,181 | 3,561 | |||||
| Total Depreciation and Amortization | $ | 87,551 | $ | 50,567 | $ | 38,698 | $ | 482,445 | $ | 153,357 |
| 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. | ||||||||||
| * Recast to reflect segment changes. |
All values are in US Dollars.
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, 2020 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.
| RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (continued) | ||||||||||||||||
| Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS) | ||||||||||||||||
| For the Three Months Ended | ||||||||||||||||
| Sep 30, 2020 | Sep 30, 2019 | Jun 30, 2020 | ||||||||||||||
| 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 | $ | (79,365) | $ | (0.80) | $ | (25,523) | $ | (0.26) | $ | (24,788) | $ | (0.25) | ||||
| Pre-tax adjustments for the effects of: | ||||||||||||||||
| Long-lived assets write-offs | 7,243 | — | — | |||||||||||||
| Inventory write-downs | 7,038 | — | — | |||||||||||||
| Goodwill impairment | 40,875 | — | — | |||||||||||||
| Restructuring expenses and other | 11,048 | — | 5,708 | |||||||||||||
| Foreign currency (gains) losses | 2,462 | 3,516 | 3,908 | |||||||||||||
| Total pre-tax adjustments | 68,666 | 3,516 | 9,616 | |||||||||||||
| Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods | (13,211) | (738) | (2,331) | |||||||||||||
| Discrete tax items: | ||||||||||||||||
| Share-based compensation | 16 | — | 16 | |||||||||||||
| Uncertain tax positions | (55) | (520) | 735 | |||||||||||||
| U.S. CARES Act | — | — | 1,159 | |||||||||||||
| Tax reform | — | (8,492) | — | |||||||||||||
| Valuation allowances | 6,599 | (32) | 3,245 | |||||||||||||
| Other | (278) | 2,079 | (1,887) | |||||||||||||
| Total discrete tax adjustments | 6,282 | (6,965) | 3,268 | |||||||||||||
| Total of adjustments | 61,737 | (4,187) | 10,553 | |||||||||||||
| Adjusted Net Income (Loss) | $ | (17,628) | $ | (0.18) | $ | (29,710) | $ | (0.30) | $ | (14,235) | $ | (0.14) | ||||
| Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss) | 99,297 | 98,930 | 99,273 | |||||||||||||
| RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||
| (continued) | ||||||||||||||||
| Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS) | ||||||||||||||||
| For the Nine Months Ended | ||||||||||||||||
| Sep 30, 2020 | Sep 30, 2019 | |||||||||||||||
| 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 | $ | (471,751) | $ | (4.76) | $ | (85,532) | $ | (0.87) | ||||||||
| 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 | — | ||||||||||||||
| Restructuring expenses and other | 23,386 | — | ||||||||||||||
| Foreign currency (gains) losses | 13,420 | 2,843 | ||||||||||||||
| Total pre-tax adjustments | 471,058 | 2,843 | ||||||||||||||
| Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods | (60,897) | (597) | ||||||||||||||
| Discrete tax items: | ||||||||||||||||
| Share-based compensation | 1,019 | 987 | ||||||||||||||
| Uncertain tax positions | (8,972) | 1,770 | ||||||||||||||
| U.S. CARES Act | (32,625) | — | ||||||||||||||
| Tax reform | — | (8,492) | ||||||||||||||
| Valuation allowances | 75,052 | 1,507 | ||||||||||||||
| Other | (1,215) | 2,374 | ||||||||||||||
| Total discrete tax adjustments | 33,259 | (1,854) | ||||||||||||||
| Total of adjustments | 443,420 | 392 | ||||||||||||||
| Adjusted Net Income (Loss) | $ | (28,331) | $ | (0.29) | $ | (85,140) | $ | (0.86) | ||||||||
| Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss) | 99,209 | 98,858 | ||||||||||||||
| RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (continued) | ||||||||||||||||
| EBITDA and Adjusted EBITDA and Margins | ||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| Sep 30, 2020 | Sep 30, 2019 | Jun 30, 2020 | Sep 30, 2020 | Sep 30, 2019 | ||||||||||||
| ( in thousands) | ||||||||||||||||
| Net income (loss) | $ | (25,523) | $ | (24,788) | $ | (471,751) | $ | (85,532) | ||||||||
| Depreciation and amortization | 87,551 | 50,567 | 38,698 | 482,445 | 153,357 | |||||||||||
| Subtotal | 8,186 | 25,044 | 13,910 | 10,694 | 67,825 | |||||||||||
| Interest expense, net of interest income | 8,836 | 9,293 | 11,100 | 31,121 | 24,464 | |||||||||||
| Amortization included in interest expense | 317 | (335) | 333 | 317 | (1,010) | |||||||||||
| Provision (benefit) for income taxes | 7,204 | 7,930 | 5,520 | (17,551) | 21,981 | |||||||||||
| EBITDA | 24,543 | 41,932 | 30,863 | 24,581 | 113,260 | |||||||||||
| Adjustments for the effects of: | ||||||||||||||||
| Long-lived assets impairments | — | — | — | 68,763 | — | |||||||||||
| Inventory write-downs | 7,038 | — | — | 7,038 | — | |||||||||||
| Restructuring expenses and other | 11,048 | — | 5,708 | 23,386 | — | |||||||||||
| Foreign currency (gains) losses | 2,462 | 3,516 | 3,908 | 13,420 | 2,843 | |||||||||||
| Total of adjustments | 20,548 | 3,516 | 9,616 | 112,607 | 2,843 | |||||||||||
| Adjusted EBITDA | $ | 45,448 | $ | 40,479 | $ | 137,188 | $ | 116,103 | ||||||||
| Revenue | $ | 497,647 | $ | 427,216 | $ | 1,403,627 | $ | 1,487,314 | ||||||||
| EBITDA margin % | 6 | % | 8 | % | 7 | % | 2 | % | 8 | % | ||||||
| Adjusted EBITDA margin % | 10 | % | 9 | % | 9 | % | 10 | % | 8 | % |
All values are in US Dollars.
| RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (continued) | |||||||||||||||||||||
| Free Cash Flow | |||||||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||
| Sep 30, 2020 | Sep 30, 2019 | Jun 30, 2020 | Sep 30, 2020 | Sep 30, 2019 | |||||||||||||||||
| (in thousands) | |||||||||||||||||||||
| Net Income (loss) | $ | (79,365) | $ | (25,523) | $ | (24,788) | $ | (471,751) | $ | (85,532) | |||||||||||
| Non-cash adjustments: | |||||||||||||||||||||
| Depreciation and amortization, including goodwill impairment | 87,551 | 50,567 | 38,698 | 482,445 | 153,357 | ||||||||||||||||
| Other non-cash | 9,423 | (5,461) | 41 | 73,601 | (4,904) | ||||||||||||||||
| Other increases (decreases) in cash from operating activities | 9,386 | 19,875 | 23,567 | (51,932) | 49,246 | ||||||||||||||||
| Cash flow provided by (used in) operating activities | 26,995 | 39,458 | 37,518 | 32,363 | 112,167 | ||||||||||||||||
| Purchases of property and equipment | (7,980) | (57,985) | (10,631) | (45,840) | (128,847) | ||||||||||||||||
| Free Cash Flow | $ | 19,015 | $ | (18,527) | $ | 26,887 | $ | (13,477) | $ | (16,680) | |||||||||||
| 2020 Adjusted EBITDA Estimate | |||||||||||||||||||||
| For the Year Ended | |||||||||||||||||||||
| December 31, 2020 | |||||||||||||||||||||
| Low | High | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||
| Adjusted income (loss) before income taxes | $ | (38,000) | $ | (28,000) | |||||||||||||||||
| Depreciation and amortization | 160,000 | 160,000 | |||||||||||||||||||
| Subtotal | 122,000 | 132,000 | |||||||||||||||||||
| Interest expense, net of interest income | 43,000 | 43,000 | |||||||||||||||||||
| Adjusted EBITDA | $ | 165,000 | $ | 175,000 | |||||||||||||||||
| RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (continued) | |||||||||||||||||||||
| Adjusted Operating Income (Loss) and Margins by Segment | |||||||||||||||||||||
| For the Three Months Ended September 30, 2020 | |||||||||||||||||||||
| Subsea Robotics | Manufactured Products | Offshore Projects Group | Integrity Management & Digital Solutions | Aerospace and Defense Technologies | Unallocated Expenses | Total | |||||||||||||||
| ( in thousands) | |||||||||||||||||||||
| Operating Income (Loss) as reported in accordance with GAAP | $ | (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) | $ | 5,236 | $ | 287 | $ | 876 | $ | 13,642 | $ | (26,157) | $ | 5,584 | |||||||||
| Revenue | $ | 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 September 30, 2019 * | |||||||||||||||||||||
| Subsea Robotics | Manufactured Products | Offshore Projects Group | Integrity Management & Digital Solutions | Aerospace and Defense Technologies | Unallocated Expenses | Total | |||||||||||||||
| ( in thousands) | |||||||||||||||||||||
| Operating Income (Loss) as reported in accordance with GAAP | $ | (2,158) | $ | (34) | $ | (1,721) | $ | 11,709 | $ | (28,447) | $ | (5,194) | |||||||||
| Adjusted Operating Income (Loss) | $ | (2,158) | $ | (34) | $ | (1,721) | $ | 11,709 | $ | (28,447) | $ | (5,194) | |||||||||
| Revenue | $ | 114,487 | $ | 89,115 | $ | 65,332 | $ | 77,221 | $ | 497,647 | |||||||||||
| Operating income (loss) % as reported in accordance with GAAP | 10 | % | (2) | % | — | % | (3) | % | 15 | % | (1) | % | |||||||||
| Operating income (loss)% using adjusted amounts | 10 | % | (2) | % | — | % | (3) | % | 15 | % | (1) | % | |||||||||
| * Recast to reflect segment changes. |
All values are in US Dollars.
| RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (continued) | |||||||||||||||||||||
| Adjusted Operating Income (Loss) and Margins by Segment | |||||||||||||||||||||
| For the Three Months Ended June 30, 2020 * | |||||||||||||||||||||
| Subsea Robotics | Manufactured Products | Offshore Projects Group | Integrity Management & Digital Solutions | Aerospace and Defense Technologies | Unallocated Expenses | Total | |||||||||||||||
| ( in thousands) | |||||||||||||||||||||
| Operating Income (Loss) as reported in accordance with GAAP | $ | 3,865 | $ | (4,135) | $ | (1,825) | $ | 13,430 | $ | (28,179) | $ | (5,182) | |||||||||
| Adjustments for the effects of: | |||||||||||||||||||||
| Restructuring expenses and other | 1,380 | 1,212 | 1,405 | 1,536 | — | 175 | 5,708 | ||||||||||||||
| Total of adjustments | 1,380 | 1,212 | 1,405 | 1,536 | — | 175 | 5,708 | ||||||||||||||
| Adjusted Operating Income (Loss) | $ | 5,077 | $ | (2,730) | $ | (289) | $ | 13,430 | $ | (28,004) | $ | 526 | |||||||||
| Revenue | $ | 100,570 | $ | 73,840 | $ | 53,969 | $ | 79,603 | $ | 427,216 | |||||||||||
| Operating income (loss) % as reported in accordance with GAAP | 10 | % | 4 | % | (6) | % | (3) | % | 17 | % | (1) | % | |||||||||
| Operating income (loss) % using adjusted amounts | 11 | % | 5 | % | (4) | % | (1) | % | 17 | % | — | % | |||||||||
| * Recast to reflect segment changes. |
All values are in US Dollars.
| RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (continued) | |||||||||||||||||||||
| Adjusted Operating Income (Loss) and Margins by Segment | |||||||||||||||||||||
| For the Nine Months Ended September 30, 2020 | |||||||||||||||||||||
| Subsea Robotics | Manufactured Products | Offshore Projects Group | Integrity Management & Digital Solutions | Aerospace and Defense Technologies | Unallocated Expenses | Total | |||||||||||||||
| ( in thousands) | |||||||||||||||||||||
| Operating Income (Loss) as reported in accordance with GAAP | $ | (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) | $ | 18,621 | $ | (6,743) | $ | 4,664 | $ | 40,043 | $ | (86,530) | $ | 11,079 | |||||||||
| Revenue | $ | 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 | % | |||||||||
| For the Nine Months Ended September 30, 2019 * | |||||||||||||||||||||
| Subsea Robotics | Manufactured Products | Offshore Projects Group | Integrity Management & Digital Solutions | Aerospace and Defense Technologies | Unallocated Expenses | Total | |||||||||||||||
| ( in thousands) | |||||||||||||||||||||
| Operating Income (Loss) as reported in accordance with GAAP | $ | 1,070 | $ | (2,792) | $ | (3,669) | $ | 30,214 | $ | (94,643) | $ | (36,543) | |||||||||
| Adjusted Operating Income (Loss) | $ | 1,070 | $ | (2,792) | $ | (3,669) | $ | 30,214 | $ | (94,643) | $ | (36,543) | |||||||||
| Revenue | $ | 334,488 | $ | 289,193 | $ | 198,057 | $ | 233,028 | $ | 1,487,314 | |||||||||||
| Operating income (loss) % as reported in accordance with GAAP | 8 | % | — | % | (1) | % | (2) | % | 13 | % | (2) | % | |||||||||
| Operating income (loss)% using adjusted amounts | 8 | % | — | % | (1) | % | (2) | % | 13 | % | (2) | % | |||||||||
| * Recast to reflect segment changes. |
All values are in US Dollars.
| RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (continued) | |||||||||||||||||||||
| EBITDA and Adjusted EBITDA and Margins by Segment | |||||||||||||||||||||
| For the Three Months Ended September 30, 2020 | |||||||||||||||||||||
| Subsea Robotics | Manufactured Products | Offshore Projects Group | Integrity Management & Digital Solutions | Aerospace and Defense Technologies | Unallocated Expenses and other | Total | |||||||||||||||
| ( in thousands) | |||||||||||||||||||||
| Operating Income (Loss) as reported in accordance with GAAP | $ | (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 | $ | 8,389 | $ | 8,191 | $ | 1,742 | $ | 14,296 | $ | (24,371) | $ | 45,091 | |||||||||
| Revenue | $ | 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 September 30, 2019 * | |||||||||||||||||||||
| Subsea Robotics | Manufactured Products | Offshore Projects Group | Integrity Management & Digital Solutions | Aerospace and Defense Technologies | Unallocated Expenses and other | Total | |||||||||||||||
| ( in thousands) | |||||||||||||||||||||
| Operating Income (Loss) as reported in accordance with GAAP | $ | (2,158) | $ | (34) | $ | (1,721) | $ | 11,709 | $ | (28,447) | $ | (5,194) | |||||||||
| Adjustments for the effects of: | |||||||||||||||||||||
| Depreciation and amortization | 31,090 | 4,920 | 10,610 | 2,087 | 640 | 1,220 | 50,567 | ||||||||||||||
| Other pre-tax | — | — | — | — | — | (3,441) | (3,441) | ||||||||||||||
| EBITDA | 46,547 | 2,762 | 10,576 | 366 | 12,349 | (30,668) | 41,932 | ||||||||||||||
| Adjustments for the effects of: | |||||||||||||||||||||
| Foreign currency (gains) losses | — | — | — | — | — | 3,516 | 3,516 | ||||||||||||||
| Total of adjustments | — | — | — | — | — | 3,516 | 3,516 | ||||||||||||||
| Adjusted EBITDA | $ | 2,762 | $ | 10,576 | $ | 366 | $ | 12,349 | $ | (27,152) | $ | 45,448 | |||||||||
| Revenue | $ | 114,487 | $ | 89,115 | $ | 65,332 | $ | 77,221 | $ | 497,647 | |||||||||||
| Operating income (loss) % as reported in accordance with GAAP | 10 | % | (2) | % | — | % | (3) | % | 15 | % | (1) | % | |||||||||
| EBITDA Margin | 31 | % | 2 | % | 12 | % | 1 | % | 16 | % | 8 | % | |||||||||
| Adjusted EBITDA Margin | 31 | % | 2 | % | 12 | % | 1 | % | 16 | % | 9 | % | |||||||||
| * Recast to reflect segment changes. |
All values are in US Dollars.
`
| RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (continued) | |||||||||||||||||||||
| EBITDA and Adjusted EBITDA and Margins by Segment | |||||||||||||||||||||
| For the Three Months Ended June 30, 2020 * | |||||||||||||||||||||
| Subsea Robotics | Manufactured Products | Offshore Projects Group | Integrity Management & Digital Solutions | Aerospace and Defense Technologies | Unallocated Expenses and other | Total | |||||||||||||||
| ( in thousands) | |||||||||||||||||||||
| Operating Income (Loss) as reported in accordance with GAAP | $ | 3,865 | $ | (4,135) | $ | (1,825) | $ | 13,430 | $ | (28,179) | $ | (5,182) | |||||||||
| Adjustments for the effects of: | |||||||||||||||||||||
| Depreciation and amortization | 25,080 | 3,587 | 8,255 | 757 | 658 | 361 | 38,698 | ||||||||||||||
| Other pre-tax | — | — | — | — | — | (2,653) | (2,653) | ||||||||||||||
| EBITDA | 36,742 | 7,452 | 4,120 | (1,068) | 14,088 | (30,471) | 30,863 | ||||||||||||||
| Adjustments for the effects of: | |||||||||||||||||||||
| Restructuring expenses and other | 1,380 | 1,212 | 1,405 | 1,536 | — | 175 | 5,708 | ||||||||||||||
| Foreign currency (gains) losses | — | — | — | — | — | 3,908 | 3,908 | ||||||||||||||
| Total of adjustments | 1,380 | 1,212 | 1,405 | 1,536 | — | 4,083 | 9,616 | ||||||||||||||
| Adjusted EBITDA | $ | 8,664 | $ | 5,525 | $ | 468 | $ | 14,088 | $ | (26,388) | $ | 40,479 | |||||||||
| Revenue | $ | 100,570 | $ | 73,840 | $ | 53,969 | $ | 79,603 | $ | 427,216 | |||||||||||
| Operating income (loss) % as reported in accordance with GAAP | 10 | % | 4 | % | (6) | % | (3) | % | 17 | % | (1) | % | |||||||||
| EBITDA Margin | 31 | % | 7 | % | 6 | % | (2) | % | 18 | % | 7 | % | |||||||||
| Adjusted EBITDA Margin | 32 | % | 9 | % | 7 | % | 1 | % | 18 | % | 9 | % | |||||||||
| * Recast to reflect segment changes. |
All values are in US Dollars.
| RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (continued) | |||||||||||||||||||||
| EBITDA and Adjusted EBITDA and Margins by Segment | |||||||||||||||||||||
| For the Nine Months Ended September 30, 2020 | |||||||||||||||||||||
| Subsea Robotics | Manufactured Products | Offshore Projects Group | Integrity Management & Digital Solutions | Aerospace and Defense Technologies | Unallocated Expenses and other | Total | |||||||||||||||
| ( in thousands) | |||||||||||||||||||||
| Operating Income (Loss) as reported in accordance with GAAP | $ | (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 | $ | 29,937 | $ | 18,038 | $ | 7,416 | $ | 42,042 | $ | (81,234) | $ | 137,188 | |||||||||
| Revenue | $ | 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 | % | |||||||||
| For the Nine Months Ended September 30, 2019 * | |||||||||||||||||||||
| Subsea Robotics | Manufactured Products | Offshore Projects Group | Integrity Management & Digital Solutions | Aerospace and Defense Technologies | Unallocated Expenses and other | Total | |||||||||||||||
| ( in thousands) | |||||||||||||||||||||
| Operating Income (Loss) as reported in accordance with GAAP | $ | 1,070 | $ | (2,792) | $ | (3,669) | $ | 30,214 | $ | (94,643) | $ | (36,543) | |||||||||
| Adjustments for the effects of: | |||||||||||||||||||||
| Depreciation and amortization | 95,917 | 14,953 | 30,758 | 6,170 | 1,998 | 3,561 | 153,357 | ||||||||||||||
| Other pre-tax | — | — | — | — | — | (3,554) | (3,554) | ||||||||||||||
| EBITDA | 129,194 | 16,023 | 27,966 | 2,501 | 32,212 | (94,636) | 113,260 | ||||||||||||||
| Adjustments for the effects of: | |||||||||||||||||||||
| Foreign currency (gains) losses | — | — | — | — | — | 2,843 | 2,843 | ||||||||||||||
| Total of adjustments | — | — | — | — | — | 2,843 | 2,843 | ||||||||||||||
| Adjusted EBITDA | $ | 16,023 | $ | 27,966 | $ | 2,501 | $ | 32,212 | $ | (91,793) | $ | 116,103 | |||||||||
| Revenue | $ | 334,488 | $ | 289,193 | $ | 198,057 | $ | 233,028 | $ | 1,487,314 | |||||||||||
| Operating income (loss) % as reported in accordance with GAAP | 8 | % | — | % | (1) | % | (2) | % | 13 | % | (2) | % | |||||||||
| EBITDA Margin | 30 | % | 5 | % | 10 | % | 1 | % | 14 | % | 8 | % | |||||||||
| Adjusted EBITDA Margin | 30 | % | 5 | % | 10 | % | 1 | % | 14 | % | 8 | % | |||||||||
| * Recast to reflect segment changes. |
All values are in US Dollars.
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