Oil States Announces Second Quarter 2021 Results of Operations

Rhea-AI Summary

Oil States International (NYSE: OIS) reported a net loss of $15.3 million for Q2 2021, equating to $0.25 per share. Despite this loss, revenue rose to $145.7 million, a 16% increase from Q1 2021. Adjusted EBITDA totaled $10.1 million, up 64% from the prior quarter. The Offshore/Manufactured Products segment saw a significant revenue increase of 27%, while cash flow from operations was $22.4 million. The company successfully reduced net debt by $17.5 million. The backlog stood at $214 million with bookings of $65 million, reflecting a book-to-bill ratio of 0.9.

Positive

• Revenues increased sequentially by 16% to $145.7 million.
• Adjusted Consolidated EBITDA rose by 64% to $10.1 million.
• Cash flow from operations reached $22.4 million.
• Net debt decreased by $17.5 million.
• Offshore/Manufactured Products segment revenue increased 27%.

Negative

• Reported a net loss of $15.3 million.
• Book-to-bill ratio of 0.9x indicates more bookings than revenues recognized, suggesting future revenue pressure.

HOUSTON, July 28, 2021 (GLOBE NEWSWIRE) -- Oil States International, Inc. (NYSE: OIS) reported a net loss of $15.3 million, or $0.25 per share, for the second quarter of 2021. Results included non-cash operating lease asset impairment charges of $2.8 million ($2.2 million after-tax, or $0.04 per share), restructuring charges of $2.6 million ($2.0 million after-tax, or $0.03 per share) and non-cash gains on extinguishment of convertible senior notes of $0.4 million ($0.3 million after-tax, or $0.01 per share).

During the second quarter of 2021, the Company generated revenues of $145.7 million and Adjusted Consolidated EBITDA (Note A) of $10.1 million (excluding $2.6 million of restructuring charges). These results compare to revenues of $125.6 million and Adjusted Consolidated EBITDA of $6.1 million reported in the first quarter of 2021 (excluding $3.4 million of severance and restructuring charges).

Second quarter 2021 highlights and corporate actions included:

• Sequentially, consolidated revenues and Adjusted Consolidated EBITDA increased 16% and 64%, respectively
• Offshore/Manufactured Products generated a 27% quarterly revenue increase and a book-to-bill ratio of 0.9x
• Generated cash flow from operations of $22.4 million
• Reduced net debt (defined as total debt less cash) by $17.5 million, including the repayment of $7.0 million of revolver borrowings and the purchase of $6.4 million principal amount of 1.50% convertible senior notes at a discount to par value of 7%
• Received a 2021 Spotlight on New Technology^® Award from the Offshore Technology Conference for our Merlin™ Deepsea Mineral Riser System
• Ms. Denise Castillo-Rhodes joined our Board of Directors and Audit Committee

Oil States' President and Chief Executive Officer, Cindy B. Taylor, stated,

"Oil States continues to focus its operations in growth areas where adequate returns can be generated. Non-performing product lines continue to be rationalized leading to a more profitable revenue mix. Sequentially, our consolidated revenues increased 16% and Adjusted Consolidated EBITDA grew 64%, supported by stronger commodity prices and demand for offshore production-related equipment, and greater U.S. well completion activity.

"Revenues in our Offshore/Manufactured Products segment increased 27% from the first quarter of 2021 – driven by a 49% increase in project-driven revenues and higher activity across all other product and service offerings. Adjusted Segment EBITDA for Offshore/Manufactured Products improved $3.5 million sequentially to $10.3 million. Backlog totaled $214 million as of June 30, 2021 with quarterly bookings totaling $65 million, yielding book-to-bill ratios of 0.9x for the second quarter and 1.0x year-to-date.

"Second quarter revenues in our Downhole Technologies segment increased 5% sequentially, driven by higher demand for our proprietary completion and perforating products. Our Downhole Technologies segment reported Adjusted Segment EBITDA of $2.4 million in the second quarter.

"Our Well Site Services segment revenues increased 6% from the prior quarter with Adjusted Segment EBITDA of $5.7 million, reflecting revenue growth and our continued cost reduction initiatives.

"We continue to invest in the development and expansion of technologies to serve new markets and industries. In this regard, we were recently recognized by the Offshore Technology Conference with a 2021 Spotlight on New Technology^® Award for our Merlin™ Deepsea Mineral Riser System, highlighting the potential to significantly advance the offshore energy sector's participation in a longer-range energy transition. We look forward to supporting growing demand for future deepsea minerals gathering, which is integral to the development of clean energy technologies.

"Finally, I want to thank Jim Nelson and Bill Van Kleef, who both retired from our Board of Directors in May, for their dedicated service, having provided a combined thirty-two years of leadership and strategic guidance to the Company."

BUSINESS SEGMENT RESULTS

(See Segment Data tables)

Offshore/Manufactured Products

Offshore/Manufactured Products reported revenues of $76.9 million and Adjusted Segment EBITDA (Note B) of $10.3 million in the second quarter of 2021, compared to revenues of $60.6 million and Adjusted Segment EBITDA of $6.8 million reported in the first quarter of 2021. Revenues increased 27% sequentially, driven by the recovery in onshore and offshore customer activity, which benefited each of the segment's product and service offerings. Adjusted Segment EBITDA margin in the second quarter of 2021 was 13% compared to 11% in the first quarter of 2021.

Backlog totaled $214 million as of June 30, 2021, a 5% sequential decrease. Second quarter 2021 bookings totaled $65 million, yielding a book-to-bill ratio of 0.9x.

Downhole Technologies

Downhole Technologies reported revenues of $26.8 million and Adjusted Segment EBITDA of $2.4 million in the second quarter of 2021, compared to revenues of $25.4 million and Adjusted Segment EBITDA of $3.0 million reported in the first quarter of 2021. Adjusted Segment EBITDA margin in the second quarter of 2021 was 9% compared to 12% in the first quarter of 2020.

Well Site Services

Well Site Services reported revenues of $42.1 million and Adjusted Segment EBITDA of $5.7 million in the second quarter of 2021, compared to revenues of $39.6 million and Adjusted Segment EBITDA of $4.0 million reported in the first quarter of 2021. Adjusted Segment EBITDA margin the second quarter of 2021 was 14% compared to 10% in the first quarter of 2021.

Corporate

Corporate expenses in the second quarter of 2021 totaled $8.5 million.

Interest Expense, Net

The Company reported net interest expense of $2.7 million in the second quarter of 2021, which included $0.5 million of non-cash amortization of deferred debt issuance costs.

Income Taxes

The Company recognized an effective tax rate benefit of 17% in the second quarter of 2021, which compared to an effective tax rate benefit of 13% in the first quarter of 2021. The effective tax rate benefit in the first quarter of 2021 included the impact of certain discrete tax items.

Financial Condition

As of June 30, 2021, no borrowings were outstanding under the Company's asset-based revolving credit facility (the "ABL Facility"), compared to $7.0 million outstanding as of March 31, 2021. Cash on-hand totaled $62.7 million as of June 30, 2021, compared to $54.5 million as of March 31, 2021. Liquidity (cash plus borrowing availability) totaled $113.0 million as of June 30, 2021 with amounts available to be drawn under the ABL Facility totaling $50.3 million.

During the second quarter of 2021, the Company purchased $6.4 million principal amount of its outstanding 1.50% convertible senior notes due February 2023 ("2023 Notes") for $6.0 million in cash. Since September 2019, the Company has purchased $174.0 million principal amount of its 2023 Notes for $152.8 million in cash.

The Company's total debt represented 20% of combined total debt and stockholders' equity as of June 30, 2021 and December 31, 2020.

Conference Call Information

The call is scheduled for July 29, 2021 at 10:00 a.m. central daylight 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 50199327. 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

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)

	Three Months Ended												Six Months Ended
	June 30, 2021				March 31, 2021				June 30, 2020				June 30, 2021				June 30, 2020
Revenues:
Products	$	78,038			$	61,445			$	82,643			$	139,483			$	185,623
Services	67,686				64,144				63,602				131,830				180,316
	145,724				125,589				146,245				271,313				365,939
Costs and expenses:
Product costs	63,926				49,463				68,088				113,389				157,834
Service costs	53,706				52,847				59,995				106,553				167,851
Cost of revenues (exclusive of depreciation and amortization expense presented below)(1)	117,632				102,310				128,083				219,942				325,685
Selling, general and administrative expense	22,092				21,225				23,992				43,317				50,116
Depreciation and amortization expense	20,909				21,520				24,646				42,429				51,055
Impairments of goodwill	—				—				—				—				406,056
Impairments of fixed and lease assets	2,794				650				2,992				3,444				8,190
Other operating income, net	(85		)		(354		)		(134		)		(439		)		(27		)
	163,342				145,351				179,579				308,693				841,075
Operating loss	(17,618		)		(19,762		)		(33,334		)		(37,380		)		(475,136		)
Interest expense, net	(2,699		)		(2,325		)		(4,179		)		(5,024		)		(7,683		)
Other income, net(2)	1,820				3,960				5,994				5,780				6,768
Loss before income taxes	(18,497		)		(18,127		)		(31,519		)		(36,624		)		(476,051		)
Income tax benefit	3,226				2,317				6,893				5,543				46,384
Net loss	$	(15,271	)		$	(15,810	)		$	(24,626	)		$	(31,081	)		$	(429,667	)
Net loss per share:
Basic	$	(0.25	)		$	(0.26	)		$	(0.41	)		$	(0.52	)		$	(7.19	)
Diluted	$	(0.25	)		$	(0.26	)		$	(0.41	)		$	(0.52	)		$	(7.19	)
Weighted average number of common shares outstanding:
Basic	60,317				60,098				59,839				60,207				59,747
Diluted	60,317				60,098				59,839				60,207				59,747

________________

(1) Cost of revenues (exclusive of depreciation and amortization expense) included non-cash inventory impairment charges of $25.2 million ($12.0 million in product costs and $13.3 million in service costs) recognized in the first quarter of 2020.

(2) Other income, net included non-cash gains of $0.4 million and $4.0 million, respectively, in the three and six months ended June 30, 2021 recognized in connection with purchases of $6.4 million and $131.4 million, respectively, principal amount of the 2023 Notes. In the second quarter of 2020, the Company recognized non-cash gains of $4.8 million in connection with the purchases of $12.0 million principal amount of the 2023 Notes.

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(In Thousands)

	June 30, 2021				December 31, 2020
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	62,650			$	72,011
Accounts receivable, net	170,424				163,135
Inventories, net	175,049				170,376
Prepaid expenses and other current assets	17,164				18,071
Total current assets	425,287				423,593
Property, plant, and equipment, net	355,405				383,562
Operating lease assets, net	29,093				33,140
Goodwill, net	76,579				76,489
Other intangible assets, net	195,612				205,749
Other noncurrent assets	33,748				29,727
Total assets	$	1,115,724			$	1,152,260
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt	$	18,231			$	17,778
Accounts payable	55,574				46,433
Accrued liabilities	45,388				44,504
Current operating lease liabilities	7,169				7,620
Income taxes payable	2,769				2,413
Deferred revenue	45,210				43,384
Total current liabilities	174,341				162,132
Long-term debt	160,354				165,759
Long-term operating lease liabilities	28,186				29,166
Deferred income taxes	4,860				14,263
Other noncurrent liabilities	26,049				23,309
Total liabilities	393,790				394,629
Stockholders' equity:
Common stock	739				733
Additional paid-in capital	1,101,959				1,122,945
Retained earnings	314,479				329,327
Accumulated other comprehensive loss	(69,754		)		(71,385		)
Treasury stock	(625,489		)		(623,989		)
Total stockholders' equity	721,934				757,631
Total liabilities and stockholders' equity	$	1,115,724			$	1,152,260

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)

	Six Months Ended June 30,
	2021				2020
Cash flows from operating activities:
Net loss	$	(31,081	)		$	(429,667	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization expense	42,429				51,055
Impairments of goodwill	—				406,056
Impairments of inventories	—				25,230
Impairments of fixed and lease assets	3,444				8,190
Stock-based compensation expense	4,703				3,257
Amortization of debt discount and deferred financing costs	1,366				4,067
Deferred income tax benefit	(6,834		)		(48,738		)
Gains on extinguishment of 1.50% convertible senior notes	(4,022		)		(4,779		)
Gains on disposals of assets	(1,632		)		(1,489		)
Other, net	375				3,177
Changes in operating assets and liabilities:
Accounts receivable	(6,962		)		56,062
Inventories	(4,458		)		(4,320		)
Accounts payable and accrued liabilities	11,896				(34,227		)
Deferred revenue	1,780				5,991
Other operating assets and liabilities, net	2,929				4,266
Net cash flows provided by operating activities	13,933				44,131
Cash flows from investing activities:
Capital expenditures	(7,311		)		(8,915		)
Proceeds from disposition of property and equipment	3,422				5,418
Other, net	(326		)		(301		)
Net cash flows used in investing activities	(4,215		)		(3,798		)
Cash flows from financing activities:
Revolving credit facility borrowings	12,571				72,173
Revolving credit facility repayments	(31,571		)		(53,104		)
Issuance of 4.75% convertible senior notes	135,000				—
Purchases of 1.50% convertible senior notes	(125,952		)		(10,595		)
Other debt and finance lease activity, net	119				(165		)
Payment of financing costs	(7,779		)		(651		)
Shares added to treasury stock as a result of net share settlements due to vesting of stock awards	(1,500		)		(2,667		)
Net cash flows provided by (used in) financing activities	(19,112		)		4,991
Effect of exchange rate changes on cash and cash equivalents	33				2
Net change in cash and cash equivalents	(9,361		)		45,326
Cash and cash equivalents, beginning of period	72,011				8,493
Cash and cash equivalents, end of period	$	62,650			$	53,819
Cash paid for:
Interest	$	2,256			$	3,486
Income taxes, net	920				2,888

OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

SEGMENT DATA
(In Thousands)
(unaudited)

	Three Months Ended												Six Months Ended
	June 30, 2021(2)				March 31, 2021(3)				June 30, 2020(4)				June 30, 2021(5)				June 30, 2020(6)
Revenues:
Offshore/Manufactured Products(1):
Project-driven products	$	31,826			$	21,374			$	51,365			$	53,200			$	88,153
Short-cycle products	16,030				12,250				11,373				28,280				33,470
Other products and services	29,052				26,985				32,198				56,037				64,485
Total Offshore/Manufactured Products	76,908				60,609				94,936				137,517				186,108
Downhole Technologies	26,760				25,430				14,965				52,190				56,030
Well Site Services	42,056				39,550				36,344				81,606				123,801
Total revenues	$	145,724			$	125,589			$	146,245			$	271,313			$	365,939
Operating income (loss):
Offshore/Manufactured Products	$	4,810			$	1,071			$	9,419			$	5,881			$	(86,077	)
Downhole Technologies	(2,295		)		(1,615		)		(11,110		)		(3,910		)		(203,801		)
Well Site Services	(11,590		)		(9,853		)		(22,920		)		(21,443		)		(167,874		)
Corporate	(8,543		)		(9,365		)		(8,723		)		(17,908		)		(17,384		)
Total operating loss	$	(17,618	)		$	(19,762	)		$	(33,334	)		$	(37,380	)		$	(475,136	)

________________

(1) Disaggregated revenue data is provided to supplement the Segment Data.

(2) Operating income (loss) for the three months ended June 30, 2021 included $0.2 million of restructuring charges related to the Downhole Technologies segment. In the Well Site Services segment, operating income (loss) included non-cash operating lease asset impairment charges of $2.8 million and restructuring charges of $2.4 million.

(3) Operating income (loss) for the three months ended March 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 $0.3 million. In the Well Site Services segment, operating income (loss) included non-cash fixed asset impairment charges of $0.7 million and severance and restructuring charges of $1.3 million. In Corporate, operating income (loss) included $1.6 million of severance charges.

(4) Operating income (loss) for the three months ended June 30, 2020 included $0.3 million of severance charges in the Offshore/Manufactured Products segment. In the Downhole Technologies segment, operating income (loss) included $1.3 million of severance and restructuring charges. In the Well Site Services segment, operating income (loss) included a non-cash fixed asset impairment charge of $3.0 million and severance and restructuring charges of $3.5 million. In Corporate, operating income (loss) included $0.2 million of severance charges.

(5) Operating income (loss) for the six months ended June 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 severance and restructuring charges of $0.5 million. In the Well Site Services segment, operating income (loss) included non-cash fixed asset and operating lease impairment charges of $3.4 million and severance and restructuring charges of $3.7 million. In Corporate, operating income (loss) included $1.6 million of severance charges.

(6) Operating income (loss) for the six months ended June 30, 2020 included a non-cash goodwill impairment charge of $86.5 million, non-cash inventory charges of $16.2 million and $0.4 million of severance 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 and severance and restructuring charges of $1.3 million. 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 $8.2 million and severance and restructuring charges of $4.1 million. In Corporate, operating income (loss) included $0.2 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												Six Months Ended
	June 30, 2021				March 31, 2021				June 30, 2020				June 30, 2021				June 30, 2020
Offshore/Manufactured Products:
Operating income (loss)	$	4,810			$	1,071			$	9,419			$	5,881			$	(86,077	)
Depreciation and amortization expense	5,557				5,469				5,476				11,026				11,104
Impairment of goodwill	—				—				—				—				86,500
Impairment of inventories	—				—				—				—				16,249
Other income (expense)	(70		)		(62		)		113				(132		)		289
Segment EBITDA	10,297				6,478				15,008				16,775				28,065
Severance and restructuring charges	—				282				322				282				434
Adjusted Segment EBITDA	$	10,297			$	6,760			$	15,330			$	17,057			$	28,499
Downhole Technologies:
Operating loss	$	(2,295	)		$	(1,615	)		$	(11,110	)		$	(3,910	)		$	(203,801	)
Depreciation and amortization expense	4,521				4,389				5,619				8,910				11,203
Impairment of goodwill	—				—				—				—				192,502
Other expense	—				(2		)		(13		)		(2		)		(90		)
Segment EBITDA	2,226				2,772				(5,504		)		4,998				(186		)
Severance and restructuring charges	203				275				1,315				478				1,315
Adjusted Segment EBITDA	$	2,429			$	3,047			$	(4,189	)		$	5,476			$	1,129
Well Site Services:
Operating loss	$	(11,590	)		$	(9,853	)		$	(22,920	)		$	(21,443	)		$	(167,874	)
Depreciation and amortization expense	10,642				11,468				13,368				22,110				28,404
Impairment of goodwill	—				—				—				—				127,054
Impairment of inventories	—				—				—				—				8,981
Impairments of fixed and lease assets	2,794				650				2,992				3,444				8,190
Other income	1,505				387				1,115				1,892				1,790
Segment EBITDA	3,351				2,652				(5,445		)		6,003				6,545
Severance and restructuring charges	2,351				1,306				3,544				3,657				4,092
Adjusted Segment EBITDA	$	5,702			$	3,958			$	(1,901	)		$	9,660			$	10,637
Corporate:
Operating loss	$	(8,543	)		$	(9,365	)		$	(8,723	)		$	(17,908	)		$	(17,384	)
Depreciation and amortization expense	189				194				183				383				344
EBITDA	(8,354		)		(9,171		)		(8,540		)		(17,525		)		(17,040		)
Severance charges	—				1,555				216				1,555				216
Adjusted EBITDA	$	(8,354	)		$	(7,616	)		$	(8,324	)		$	(15,970	)		$	(16,824	)

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												Six Months Ended
	June 30, 2021				March 31, 2021				June 30, 2020				June 30, 2021				June 30, 2020
Net loss	$	(15,271	)		$	(15,810	)		$	(24,626	)		$	(31,081	)		$	(429,667	)
Income tax benefit	(3,226		)		(2,317		)		(6,893		)		(5,543		)		(46,384		)
Depreciation and amortization expense	20,909				21,520				24,646				42,429				51,055
Impairments of goodwill	—				—				—				—				406,056
Impairments of inventories	—				—				—				—				25,230
Impairments of fixed and lease assets	2,794				650				2,992				3,444				8,190
Interest expense, net	2,699				2,325				4,179				5,024				7,683
Gains on extinguishment of 1.50% convertible senior notes	(385		)		(3,637		)		(4,779		)		(4,022		)		(4,779		)
Consolidated EBITDA	7,520				2,731				(4,481		)		10,251				17,384
Severance and restructuring charges	2,554				3,418				5,397				5,972				6,057
Adjusted Consolidated EBITDA	$	10,074			$	6,149			$	916			$	16,223			$	23,441

________________

(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, gains on extinguishment of 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 depreciation and amortization expense, non-cash asset impairment charges, 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 a supplemental disclosure 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.

FAQ

What were Oil States International's Q2 2021 financial results?

Oil States International reported a net loss of $15.3 million and revenues of $145.7 million for Q2 2021.

How much did Oil States International's revenue increase in Q2 2021?

Revenue for Q2 2021 increased by 16% compared to Q1 2021.

What is the book-to-bill ratio for Oil States International in Q2 2021?

The company reported a book-to-bill ratio of 0.9x for Q2 2021.

How much net debt did Oil States International reduce in Q2 2021?

Oil States International reduced its net debt by $17.5 million in Q2 2021.

What was the Adjusted EBITDA for Oil States International in Q2 2021?

The Adjusted Consolidated EBITDA for Q2 2021 was $10.1 million.