Oil States Announces Second Quarter 2024 Results
Oil States International (NYSE: OIS) reported net income of $1.3 million, or $0.02 per share, for Q2 2024. Adjusted net income was $4.4 million, or $0.07 per share, excluding charges. Consolidated revenues increased 11% sequentially to $186.4 million, driven by timing of order conversions and U.S. oil market share gains. Adjusted EBITDA rose 38% to $21.3 million. The Offshore Manufactured Products segment saw 17% revenue growth to $101.6 million. Well Site Services revenue declined 2% to $46.4 million, while Downhole Technologies revenue grew 16% to $38.4 million. The company received $10.3 million from selling an idle facility and repurchased $11.5 million of convertible notes and $2.4 million of common stock.
Oil States International (NYSE: OIS) ha riportato un utile netto di 1,3 milioni di dollari, ovvero 0,02 dollari per azione, per il secondo trimestre del 2024. L'utile netto rettificato è stato di 4,4 milioni di dollari, o 0,07 dollari per azione, escludendo le spese. I ricavi consolidati sono aumentati dell'11% rispetto al trimestre precedente, raggiungendo i 186,4 milioni di dollari, grazie alla tempistica delle conversioni degli ordini e ai guadagni di quota di mercato nel settore petrolifero degli Stati Uniti. L'EBITDA rettificato è aumentato del 38% a 21,3 milioni di dollari. Il segmento dei Prodotti Fabbricati Offshore ha registrato una crescita dei ricavi del 17%, raggiungendo i 101,6 milioni di dollari. I ricavi dei Servizi in Sito di Pozzo sono diminuiti del 2% a 46,4 milioni di dollari, mentre i ricavi delle Tecnologie Downhole sono aumentati del 16% a 38,4 milioni di dollari. L'azienda ha ricevuto 10,3 milioni di dollari dalla vendita di un impianto inattivo e ha riacquistato 11,5 milioni di dollari di obbligazioni convertibili e 2,4 milioni di dollari di azioni ordinarie.
Oil States International (NYSE: OIS) reportó ingresos netos de 1,3 millones de dólares, o 0,02 dólares por acción, para el segundo trimestre de 2024. Los ingresos netos ajustados fueron de 4,4 millones de dólares, o 0,07 dólares por acción, excluyendo cargos. Los ingresos consolidados aumentaron un 11% secuencialmente, alcanzando los 186,4 millones de dólares, impulsados por la conversión de pedidos y el aumento de la participación en el mercado petrolero de EE. UU. El EBITDA ajustado creció un 38% a 21,3 millones de dólares. El segmento de Productos Manufacturados en Alta Mar vio un crecimiento del 17% en ingresos, alcanzando los 101,6 millones de dólares. Los ingresos de Servicios en el Sitio de Pozos disminuyeron un 2% a 46,4 millones de dólares, mientras que los ingresos de Tecnologías Downhole crecieron un 16% a 38,4 millones de dólares. La compañía recibió 10,3 millones de dólares por la venta de una instalación inactiva y recompró 11,5 millones de dólares en notas convertibles y 2,4 millones de dólares en acciones ordinarias.
Oil States International (NYSE: OIS)는 2024년 2분기에 130만 달러의 순이익, 즉 주당 0.02달러를 보고했습니다. 조정된 순이익은 비용을 제외하고 440만 달러, 즉 주당 0.07달러였습니다. 통합 수익은 순환적으로 11% 증가하여 1억 8640만 달러에 달했습니다, 이는 주문 전환 시점과 미국 석유 시장 점유율 증가에 기인합니다. 조정 EBITDA는 38% 증가하여 2130만 달러에 도달했습니다. 해양 제조 제품 부문은 수익이 17% 성장하여 1억 160만 달러에 도달했습니다. 우물 현장 서비스의 수익은 2% 감소하여 4640만 달러에 도달했으며, 하부 기술의 수익은 16% 성장하여 3840만 달러에 도달했습니다. 이 회사는 휴업 시설 판매로 1030만 달러를 수령했으며, 1150만 달러의 전환사채와 240만 달러의 보통주를 재매입했습니다.
Oil States International (NYSE: OIS) a annoncé un bénéfice net de 1,3 million de dollars, soit 0,02 dollar par action, pour le deuxième trimestre 2024. Le bénéfice net ajusté a atteint 4,4 millions de dollars, soit 0,07 dollar par action, hors charges. Les revenus consolidés ont augmenté de 11% par rapport au trimestre précédent, atteignant 186,4 millions de dollars, grâce au moment des conversions de commandes et aux gains de parts de marché sur le marché pétrolier américain. L'EBITDA ajusté a augmenté de 38% pour atteindre 21,3 millions de dollars. Le segment des Produits manufacturés offshore a connu une croissance des revenus de 17%, atteignant 101,6 millions de dollars. Les revenus des Services sur site des puits ont diminué de 2% pour atteindre 46,4 millions de dollars, tandis que les revenus des Technologies en profondeur ont augmenté de 16% pour atteindre 38,4 millions de dollars. L'entreprise a perçu 10,3 millions de dollars de la vente d'une installation inutilisée et a racheté pour 11,5 millions de dollars d'obligations convertibles et pour 2,4 millions de dollars d'actions ordinaires.
Oil States International (NYSE: OIS) meldete einen Nettogewinn von 1,3 Millionen Dollar, bzw. 0,02 Dollar pro Aktie, für das zweite Quartal 2024. Der bereinigte Nettogewinn betrug 4,4 Millionen Dollar, oder 0,07 Dollar pro Aktie, ohne Berücksichtigung von Belastungen. Die konsolidierten Einnahmen stiegen sequenziell um 11% auf 186,4 Millionen Dollar, bedingt durch die Umstellung der Aufträge und die Gewinnung von Marktanteilen im US-Ölmarkt. Das bereinigte EBITDA stieg um 38% auf 21,3 Millionen Dollar. Das Segment Offshore-Produkte verzeichnete ein Umsatzwachstum von 17% auf 101,6 Millionen Dollar. Die Einnahmen der Well Site Services sanken um 2% auf 46,4 Millionen Dollar, während die Einnahmen der Downhole-Technologien um 16% auf 38,4 Millionen Dollar stiegen. Das Unternehmen erhielt 10,3 Millionen Dollar aus dem Verkauf einer stillgelegten Einrichtung und kaufte 11,5 Millionen Dollar an wandelbaren Anleihen und 2,4 Millionen Dollar an Stammaktien zurück.
- Net income of $1.3 million, improving from a $13.4 million loss in Q1 2024
- Consolidated revenues increased 11% sequentially to $186.4 million
- Adjusted EBITDA rose 38% sequentially to $21.3 million
- Offshore Manufactured Products segment revenue grew 17% to $101.6 million
- Downhole Technologies segment revenue increased 16% to $38.4 million
- Received $10.3 million from sale of idle facility
- Strong cash flow from operations of $10.2 million
- Well Site Services segment revenue declined 2% to $46.4 million
- Exited underperforming operations in Well Site Services segment
- U.S. land revenues impacted by 3% sequential decline in average rig count
Oil States International's Q2 2024 results show a mixed performance with some positive trends emerging. The company reported
Key highlights include:
- Consolidated revenues increased
11% sequentially to$186.4 million , driven by higher project-related activity in the Offshore Manufactured Products segment. - The Offshore Manufactured Products segment saw a
17% revenue increase and a27% rise in Adjusted Segment EBITDA. - Bookings improved to
$101 million , resulting in a book-to-bill ratio of 1.0x for the quarter. - The company continues to focus on debt reduction and shareholder returns, repurchasing
$11.5 million of convertible notes and$2.4 million of common stock.
However, challenges persist in the U.S. land market, with the Well Site Services segment experiencing a
Overall, Oil States appears to be navigating a challenging market environment by focusing on operational efficiency and strategic capital allocation. The improved performance in offshore and international markets is helping to offset weakness in U.S. land operations.
Oil States International's Q2 results reflect the broader trends in the energy sector. The company's performance highlights the ongoing shift in the oil and gas industry, with stronger growth in offshore and international markets contrasting with challenges in U.S. land operations.
Key market insights:
- The
32% year-over-year increase in offshore and international revenues suggests growing investment in these sectors, likely driven by higher oil prices and the need for energy security. - The
28% year-over-year decline in U.S. land revenues indicates continued caution among operators, possibly due to cost inflation and capital discipline. - The book-to-bill ratio of 1.0x for the Offshore Manufactured Products segment suggests stable near-term demand for offshore equipment.
The company's strategic moves, such as exiting underperforming U.S. locations and focusing on debt reduction, align with industry-wide efforts to improve profitability and strengthen balance sheets. The increased bookings and backlog in the Offshore Manufactured Products segment (
However, investors should note the ongoing volatility in the sector, as evidenced by the segment-specific performance variations. The energy market remains sensitive to global economic conditions, geopolitical events and the pace of energy transition, which could impact Oil States' performance in the coming quarters.
-
Net income of
$1.3 million $0.02 $3.9 million $3.1 million $0.05 -
Adjusted net income of
$4.4 million $0.07 -
Consolidated revenues of
$186.4 million 11% sequentially, driven primarily by the timing of conversion of orders from backlog along with modestU.S. oil-focused completion market share gains -
Adjusted EBITDA (a non-GAAP measure(1)) of
$21.3 million 38% sequentially -
Received cash proceeds of
$10.3 million -
Purchased
$11.5 million 4.75% convertible senior notes at a discount and$2.4 million
|
Three Months Ended |
|
% Change |
||||||||||||||
(Unaudited, In Thousands, Except Per Share Amounts) |
June 30,
|
|
March 31,
|
|
June 30,
|
|
Sequential |
|
Year-over-Year |
||||||||
Consolidated results: |
|
|
|
|
|
|
|
|
|
||||||||
Revenues |
$ |
186,383 |
|
|
$ |
167,262 |
|
|
$ |
183,529 |
|
|
|
|
|
||
Operating income (loss)(3) |
$ |
2,045 |
|
|
$ |
(11,177 |
) |
|
$ |
3,269 |
|
|
n.m. |
|
(37)% |
||
Net income (loss) |
$ |
1,301 |
|
|
$ |
(13,374 |
) |
|
$ |
558 |
|
|
n.m. |
|
|
||
Adjusted net income (loss), excluding charges and credits(1) |
$ |
4,391 |
|
|
$ |
(1,873 |
) |
|
$ |
558 |
|
|
n.m. |
|
n.m. |
||
Adjusted EBITDA(1) |
$ |
21,306 |
|
|
$ |
15,455 |
|
|
$ |
19,016 |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues by segment(2): |
|
|
|
|
|
|
|
|
|
||||||||
Offshore Manufactured Products |
$ |
101,556 |
|
|
$ |
86,857 |
|
|
$ |
78,647 |
|
|
|
|
|
||
Well Site Services |
|
46,421 |
|
|
|
47,292 |
|
|
|
64,536 |
|
|
(2)% |
|
(28)% |
||
Downhole Technologies |
|
38,406 |
|
|
|
33,113 |
|
|
|
40,346 |
|
|
|
|
(5 )% |
||
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues by destination: |
|
|
|
|
|
|
|
|
|
||||||||
Offshore and international |
$ |
118,625 |
|
|
$ |
100,180 |
|
|
$ |
89,817 |
|
|
|
|
|
||
|
|
67,758 |
|
|
|
67,082 |
|
|
|
93,712 |
|
|
|
|
(28 )% |
||
|
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) by segment(2)(3): |
|
|
|
|
|
|
|
|
|
||||||||
Offshore Manufactured Products |
$ |
14,357 |
|
|
$ |
10,603 |
|
|
$ |
8,838 |
|
|
|
|
62 % |
||
Well Site Services |
|
(535 |
) |
|
|
(419 |
) |
|
|
4,732 |
|
|
(28)% |
|
n.m. |
||
Downhole Technologies |
|
(1,141 |
) |
|
|
(12,079 |
) |
|
|
(121 |
) |
|
|
|
n.m. |
||
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted Segment EBITDA(1)(2): |
|
|
|
|
|
|
|
|
|
||||||||
Offshore Manufactured Products |
$ |
20,131 |
|
|
$ |
15,800 |
|
|
$ |
12,994 |
|
|
|
|
|
||
Well Site Services |
|
8,548 |
|
|
|
6,593 |
|
|
|
11,425 |
|
|
|
|
(25)% |
||
Downhole Technologies |
|
3,114 |
|
|
|
2,191 |
|
|
|
4,626 |
|
|
|
|
(33)% |
||
___________________
(1) |
These are non-GAAP measures. See “Reconciliations of GAAP to Non-GAAP Financial Information” tables below for reconciliations to their most comparable GAAP measures as well as further clarification and explanation. |
|
(2) |
In first quarter 2024, certain short-cycle, consumable product operations historically reported within the Offshore Manufactured Products segment were integrated into the Downhole Technologies segment. Historical segment financial data, backlog and other information were conformed with the revised segment presentation. |
|
(3) |
Operating income (loss) for the three months ended June 30, 2024 included facility consolidation and other charges totaling |
Oil States International, Inc. reported net income of
Oil States’ President and Chief Executive Officer, Cindy B. Taylor, stated:
“Our second quarter consolidated revenues and Adjusted EBITDA increased
In the second quarter, our Offshore Manufactured Products segment revenues increased
“Revenues reported by our Well Site Services segment decreased
“Our Downhole Technologies segment revenues and Adjusted Segment EBITDA increased
“We continue to focus on improving operations and allocating capital to efficiently and safely provide our customers with advanced technologies and services, while enhancing returns, reducing debt and returning cash to our stockholders. Strong cash flows from operations totaling
Business Segment Results
In first quarter 2024, certain short-cycle, consumable product operations historically reported within the Offshore Manufactured Products segment (legacy frac plugs and elastomer products) were integrated into our Downhole Technologies segment to better align with the underlying activity demand drivers and current segment management structure, as well as provide for additional operational synergies. Historical segment financial data (GAAP and non-GAAP), backlog and other information were conformed with the revised segment presentation.
(See Segment Data and Adjusted Segment EBITDA tables below)
Offshore Manufactured Products
Offshore Manufactured Products reported revenues of
Backlog totaled
Well Site Services
Well Site Services reported revenues of
Downhole Technologies
Downhole Technologies reported revenues of
Corporate
Corporate operating expenses in the second quarter of 2024 totaled
Interest Expense, Net
Net interest expense totaled
Income Taxes
During the second quarter of 2024, the Company recognized tax benefit of
Cash Flows
During the second quarter of 2024, cash flows provided by operations totaled
The Company purchased
Financial Condition
Cash on-hand totaled
Conference Call Information
The call is scheduled for July 29, 2024 at 9:00 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) 210-3346 in
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
For more information on the Company, please visit Oil States International’s website at www.oilstatesintl.com.
Cautionary Language Concerning 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 and demand for oil and natural gas, fluctuations in the current and future prices of oil and natural gas, the level of exploration, drilling and completion activity, general global economic conditions, the cyclical nature of the oil and natural gas industry, geopolitical conflicts and tensions, the financial health of our customers, the actions of the Organization of Petroleum Exporting Countries (“OPEC”) and other producing nations with respect to crude oil production levels and pricing, the impact of environmental matters, including executive actions and regulatory efforts to adopt environmental or climate change regulations that may result in increased operating costs or reduced oil and natural gas production or demand globally, consolidation of our customers, our ability to access and the cost of capital in the bank and capital markets, our ability to develop new competitive technologies and products, 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, 2023, and the subsequently filed Quarterly Report on Form 10-Q and 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) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
||||||||||
Products |
$ |
108,579 |
|
|
$ |
94,329 |
|
|
$ |
92,630 |
|
|
$ |
202,908 |
|
|
$ |
192,470 |
|
Services |
|
77,804 |
|
|
|
72,933 |
|
|
|
90,899 |
|
|
|
150,737 |
|
|
|
187,258 |
|
|
|
186,383 |
|
|
|
167,262 |
|
|
|
183,529 |
|
|
|
353,645 |
|
|
|
379,728 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Costs and expenses: |
|
|
|
|
|
|
|
|
|
||||||||||
Product costs |
|
82,503 |
|
|
|
75,137 |
|
|
|
72,659 |
|
|
|
157,640 |
|
|
|
151,336 |
|
Service costs |
|
59,530 |
|
|
|
56,814 |
|
|
|
69,371 |
|
|
|
116,344 |
|
|
|
141,429 |
|
Cost of revenues (exclusive of depreciation and amortization expense presented below) |
|
142,033 |
|
|
|
131,951 |
|
|
|
142,030 |
|
|
|
273,984 |
|
|
|
292,765 |
|
Selling, general and administrative expense |
|
26,373 |
|
|
|
22,496 |
|
|
|
23,528 |
|
|
|
48,869 |
|
|
|
47,544 |
|
Depreciation and amortization expense |
|
14,698 |
|
|
|
14,195 |
|
|
|
15,537 |
|
|
|
28,893 |
|
|
|
30,793 |
|
Impairment of goodwill |
|
— |
|
|
|
10,000 |
|
|
|
— |
|
|
|
10,000 |
|
|
|
— |
|
Other operating (income) expense, net |
|
1,234 |
|
|
|
(203 |
) |
|
|
(835 |
) |
|
|
1,031 |
|
|
|
(518 |
) |
|
|
184,338 |
|
|
|
178,439 |
|
|
|
180,260 |
|
|
|
362,777 |
|
|
|
370,584 |
|
Operating income (loss) |
|
2,045 |
|
|
|
(11,177 |
) |
|
|
3,269 |
|
|
|
(9,132 |
) |
|
|
9,144 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net |
|
(2,061 |
) |
|
|
(2,101 |
) |
|
|
(2,059 |
) |
|
|
(4,162 |
) |
|
|
(4,450 |
) |
Other income (expense), net |
|
652 |
|
|
|
(72 |
) |
|
|
210 |
|
|
|
580 |
|
|
|
486 |
|
Income (loss) before income taxes |
|
636 |
|
|
|
(13,350 |
) |
|
|
1,420 |
|
|
|
(12,714 |
) |
|
|
5,180 |
|
Income tax benefit (provision) |
|
665 |
|
|
|
(24 |
) |
|
|
(862 |
) |
|
|
641 |
|
|
|
(2,464 |
) |
Net income (loss) |
$ |
1,301 |
|
|
$ |
(13,374 |
) |
|
$ |
558 |
|
|
$ |
(12,073 |
) |
|
$ |
2,716 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) per share: |
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
$ |
0.02 |
|
|
$ |
(0.21 |
) |
|
$ |
0.01 |
|
|
$ |
(0.19 |
) |
|
$ |
0.04 |
|
Diluted |
|
0.02 |
|
|
|
(0.21 |
) |
|
|
0.01 |
|
|
|
(0.19 |
) |
|
|
0.04 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|||||||||||
Basic |
|
62,483 |
|
|
|
62,503 |
|
|
|
62,803 |
|
|
|
62,493 |
|
|
|
62,814 |
|
Diluted |
|
62,704 |
|
|
|
62,503 |
|
|
|
63,174 |
|
|
|
62,493 |
|
|
|
63,161 |
|
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(In Thousands) |
|||||||
|
June 30, 2024 |
|
December 31, 2023 |
||||
|
(Unaudited) |
|
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
25,188 |
|
|
$ |
47,111 |
|
Accounts receivable, net |
|
203,694 |
|
|
|
203,211 |
|
Inventories, net |
|
217,347 |
|
|
|
202,027 |
|
Prepaid expenses and other current assets |
|
22,587 |
|
|
|
35,648 |
|
Total current assets |
|
468,816 |
|
|
|
487,997 |
|
|
|
|
|
||||
Property, plant, and equipment, net |
|
270,878 |
|
|
|
280,389 |
|
Operating lease assets, net |
|
22,825 |
|
|
|
21,970 |
|
Goodwill, net |
|
69,789 |
|
|
|
79,867 |
|
Other intangible assets, net |
|
144,505 |
|
|
|
153,010 |
|
Other noncurrent assets |
|
24,365 |
|
|
|
23,253 |
|
Total assets |
$ |
1,001,178 |
|
|
$ |
1,046,486 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Current portion of long-term debt |
$ |
616 |
|
|
$ |
627 |
|
Accounts payable |
|
62,322 |
|
|
|
67,546 |
|
Accrued liabilities |
|
38,493 |
|
|
|
44,227 |
|
Current operating lease liabilities |
|
6,711 |
|
|
|
6,880 |
|
Income taxes payable |
|
1,184 |
|
|
|
1,233 |
|
Deferred revenue |
|
34,404 |
|
|
|
36,757 |
|
Total current liabilities |
|
143,730 |
|
|
|
157,270 |
|
|
|
|
|
||||
Long-term debt |
|
124,339 |
|
|
|
135,502 |
|
Long-term operating lease liabilities |
|
18,864 |
|
|
|
18,346 |
|
Deferred income taxes |
|
5,657 |
|
|
|
7,717 |
|
Other noncurrent liabilities |
|
18,199 |
|
|
|
18,106 |
|
Total liabilities |
|
310,789 |
|
|
|
336,941 |
|
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Common stock |
|
786 |
|
|
|
772 |
|
Additional paid-in capital |
|
1,133,282 |
|
|
|
1,129,240 |
|
Retained earnings |
|
272,845 |
|
|
|
284,918 |
|
Accumulated other comprehensive loss |
|
(76,162 |
) |
|
|
(69,984 |
) |
Treasury stock |
|
(640,362 |
) |
|
|
(635,401 |
) |
Total stockholders’ equity |
|
690,389 |
|
|
|
709,545 |
|
Total liabilities and stockholders’ equity |
$ |
1,001,178 |
|
|
$ |
1,046,486 |
|
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES |
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(In Thousands) |
|||||||
(Unaudited) |
|||||||
|
Six Months Ended June 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net income (loss) |
$ |
(12,073 |
) |
|
$ |
2,716 |
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization expense |
|
28,893 |
|
|
|
30,793 |
|
Impairment of goodwill |
|
10,000 |
|
|
|
— |
|
Stock-based compensation expense |
|
4,056 |
|
|
|
3,361 |
|
Amortization of deferred financing costs |
|
841 |
|
|
|
892 |
|
Deferred income tax provision (benefit) |
|
(2,299 |
) |
|
|
997 |
|
Gains on disposals of assets |
|
(1,355 |
) |
|
|
(561 |
) |
Gains on extinguishment of |
|
(515 |
) |
|
|
— |
|
Other, net |
|
(379 |
) |
|
|
(267 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(2,335 |
) |
|
|
39,042 |
|
Inventories |
|
(16,436 |
) |
|
|
(21,197 |
) |
Accounts payable and accrued liabilities |
|
(9,504 |
) |
|
|
(25,924 |
) |
Deferred revenue |
|
(2,353 |
) |
|
|
8,237 |
|
Other operating assets and liabilities, net |
|
2,341 |
|
|
|
653 |
|
Net cash flows provided by (used in) operating activities |
|
(1,118 |
) |
|
|
38,742 |
|
|
|
|
|
||||
Cash flows from investing activities: |
|
|
|
||||
Capital expenditures |
|
(15,881 |
) |
|
|
(17,338 |
) |
Proceeds from disposition of property and equipment |
|
12,751 |
|
|
|
690 |
|
Other, net |
|
(68 |
) |
|
|
(66 |
) |
Net cash flows used in investing activities |
|
(3,198 |
) |
|
|
(16,714 |
) |
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Revolving credit facility borrowings |
|
22,619 |
|
|
|
35,592 |
|
Revolving credit facility repayments |
|
(22,619 |
) |
|
|
(35,592 |
) |
Purchases of |
|
(10,846 |
) |
|
|
— |
|
Repayment of |
|
— |
|
|
|
(17,315 |
) |
Other debt and finance lease repayments |
|
(318 |
) |
|
|
(226 |
) |
Payment of financing costs |
|
(1,111 |
) |
|
|
(95 |
) |
Purchases of treasury stock |
|
(2,374 |
) |
|
|
(3,001 |
) |
Shares added to treasury stock as a result of net share settlements due to vesting of stock awards |
|
(2,587 |
) |
|
|
(1,948 |
) |
Net cash flows used in financing activities |
|
(17,236 |
) |
|
|
(22,585 |
) |
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents |
|
(371 |
) |
|
|
959 |
|
Net change in cash and cash equivalents |
|
(21,923 |
) |
|
|
402 |
|
Cash and cash equivalents, beginning of period |
|
47,111 |
|
|
|
42,018 |
|
Cash and cash equivalents, end of period |
$ |
25,188 |
|
|
$ |
42,420 |
|
|
|
|
|
||||
Cash paid (received) for: |
|
|
|
||||
Interest |
$ |
3,899 |
|
|
$ |
4,060 |
|
Income taxes, net |
|
1,346 |
|
|
|
(1,475 |
) |
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES |
|||||||||||||||||||
SEGMENT DATA |
|||||||||||||||||||
(In Thousands) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
June 30, 2024 |
|
March 31,
|
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
||||||||||
Revenues(1): |
|
|
|
|
|
|
|
|
|
||||||||||
Offshore Manufactured Products |
|
|
|
|
|
|
|
|
|
||||||||||
Project-driven: |
|
|
|
|
|
|
|
|
|
||||||||||
Products |
$ |
59,752 |
|
|
$ |
53,137 |
|
|
$ |
45,455 |
|
|
$ |
112,889 |
|
|
$ |
94,072 |
|
Services |
|
31,024 |
|
|
|
25,233 |
|
|
|
24,846 |
|
|
|
56,257 |
|
|
|
49,476 |
|
|
|
90,776 |
|
|
|
78,370 |
|
|
|
70,301 |
|
|
|
169,146 |
|
|
|
143,548 |
|
Military and other products |
|
10,780 |
|
|
|
8,487 |
|
|
|
8,346 |
|
|
|
19,267 |
|
|
|
15,604 |
|
Total Offshore Manufactured Products |
|
101,556 |
|
|
|
86,857 |
|
|
|
78,647 |
|
|
|
188,413 |
|
|
|
159,152 |
|
Well Site Services |
|
46,421 |
|
|
|
47,292 |
|
|
|
64,536 |
|
|
|
93,713 |
|
|
|
131,594 |
|
Downhole Technologies |
|
38,406 |
|
|
|
33,113 |
|
|
|
40,346 |
|
|
|
71,519 |
|
|
|
88,982 |
|
Total revenues |
$ |
186,383 |
|
|
$ |
167,262 |
|
|
$ |
183,529 |
|
|
$ |
353,645 |
|
|
$ |
379,728 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating income (loss)(1): |
|
|
|
|
|
|
|
|
|
||||||||||
Offshore Manufactured Products(2) |
$ |
14,357 |
|
|
$ |
10,603 |
|
|
$ |
8,838 |
|
|
$ |
24,960 |
|
|
$ |
16,536 |
|
Well Site Services(3) |
|
(535 |
) |
|
|
(419 |
) |
|
|
4,732 |
|
|
|
(954 |
) |
|
|
11,698 |
|
Downhole Technologies(4) |
|
(1,141 |
) |
|
|
(12,079 |
) |
|
|
(121 |
) |
|
|
(13,220 |
) |
|
|
1,752 |
|
Corporate |
|
(10,636 |
) |
|
|
(9,282 |
) |
|
|
(10,180 |
) |
|
|
(19,918 |
) |
|
|
(20,842 |
) |
Total operating income |
$ |
2,045 |
|
|
$ |
(11,177 |
) |
|
$ |
3,269 |
|
|
$ |
(9,132 |
) |
|
$ |
9,144 |
|
________________
(1) |
In the first quarter 2024, certain short-cycle, consumable product operations historically reported within the Offshore Manufactured Products segment were integrated into the Downhole Technologies segment. Historical segment financial results were conformed with the revised segment presentation. |
|
(2) |
Operating income for both the three months ended June 30, 2024 and March 31, 2024 included facility consolidation charges of |
|
(3) |
Operating loss for the three months ended June 30, 2024 and March 31, 2024 included |
|
(4) |
Operating loss for the three months ended March 31, 2024 included a non-cash goodwill impairment charge of |
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES |
|||||||||||||||||
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL INFORMATION |
|||||||||||||||||
ADJUSTED EBITDA (A) |
|||||||||||||||||
(In Thousands) |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
1,301 |
|
|
$ |
(13,374 |
) |
|
$ |
558 |
|
$ |
(12,073 |
) |
|
$ |
2,716 |
Interest expense, net |
|
2,061 |
|
|
|
2,101 |
|
|
|
2,059 |
|
|
4,162 |
|
|
|
4,450 |
Income tax provision (benefit) |
|
(665 |
) |
|
|
24 |
|
|
|
862 |
|
|
(641 |
) |
|
|
2,464 |
Depreciation and amortization expense |
|
14,698 |
|
|
|
14,195 |
|
|
|
15,537 |
|
|
28,893 |
|
|
|
30,793 |
Impairment of goodwill |
|
— |
|
|
|
10,000 |
|
|
|
— |
|
|
10,000 |
|
|
|
— |
Facility consolidation and other charges |
|
4,426 |
|
|
|
2,509 |
|
|
|
— |
|
|
6,935 |
|
|
|
— |
Gains on extinguishment of |
|
(515 |
) |
|
|
— |
|
|
|
— |
|
|
(515 |
) |
|
|
— |
Adjusted EBITDA |
$ |
21,306 |
|
|
$ |
15,455 |
|
|
$ |
19,016 |
|
$ |
36,761 |
|
|
$ |
40,423 |
________________
(A) |
The term Adjusted EBITDA consists of net income (loss) plus net interest expense, taxes, depreciation and amortization expense, impairment of goodwill, and facility consolidation and other charges, less gains on extinguishment of |
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES |
|||||||||||||||||||
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL INFORMATION |
|||||||||||||||||||
ADJUSTED SEGMENT EBITDA (B) |
|||||||||||||||||||
(In Thousands) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
||||||||||
Offshore Manufactured Products: |
|
|
|
|
|
|
|
|
|
||||||||||
Operating income |
$ |
14,357 |
|
|
$ |
10,603 |
|
|
$ |
8,838 |
|
|
$ |
24,960 |
|
|
$ |
16,536 |
|
Other income (expense), net |
|
(20 |
) |
|
|
41 |
|
|
|
81 |
|
|
|
21 |
|
|
|
246 |
|
Depreciation and amortization expense |
|
4,247 |
|
|
|
3,693 |
|
|
|
4,075 |
|
|
|
7,940 |
|
|
|
8,150 |
|
Facility consolidation and other charges |
|
1,547 |
|
|
|
1,463 |
|
|
|
— |
|
|
|
3,010 |
|
|
|
— |
|
Adjusted Segment EBITDA |
$ |
20,131 |
|
|
$ |
15,800 |
|
|
$ |
12,994 |
|
|
$ |
35,931 |
|
|
$ |
24,932 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Well Site Services: |
|
|
|
|
|
|
|
|
|
||||||||||
Operating income (loss) |
$ |
(535 |
) |
|
$ |
(419 |
) |
|
$ |
4,732 |
|
|
$ |
(954 |
) |
|
$ |
11,698 |
|
Other income (expense), net |
|
157 |
|
|
|
(113 |
) |
|
|
129 |
|
|
|
44 |
|
|
|
240 |
|
Depreciation and amortization expense |
|
6,047 |
|
|
|
6,079 |
|
|
|
6,564 |
|
|
|
12,126 |
|
|
|
12,710 |
|
Facility consolidation and other charges |
|
2,879 |
|
|
|
1,046 |
|
|
|
— |
|
|
|
3,925 |
|
|
|
— |
|
Adjusted Segment EBITDA |
$ |
8,548 |
|
|
$ |
6,593 |
|
|
$ |
11,425 |
|
|
$ |
15,141 |
|
|
$ |
24,648 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Downhole Technologies: |
|
|
|
|
|
|
|
|
|
||||||||||
Operating income (loss) |
$ |
(1,141 |
) |
|
$ |
(12,079 |
) |
|
$ |
(121 |
) |
|
$ |
(13,220 |
) |
|
$ |
1,752 |
|
Depreciation and amortization expense |
|
4,255 |
|
|
|
4,270 |
|
|
|
4,747 |
|
|
|
8,525 |
|
|
|
9,615 |
|
Impairment of goodwill |
|
— |
|
|
|
10,000 |
|
|
|
— |
|
|
|
10,000 |
|
|
|
— |
|
Adjusted Segment EBITDA |
$ |
3,114 |
|
|
$ |
2,191 |
|
|
$ |
4,626 |
|
|
$ |
5,305 |
|
|
$ |
11,367 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Corporate: |
|
|
|
|
|
|
|
|
|
||||||||||
Operating loss |
$ |
(10,636 |
) |
|
$ |
(9,282 |
) |
|
$ |
(10,180 |
) |
|
$ |
(19,918 |
) |
|
$ |
(20,842 |
) |
Other income, net |
|
515 |
|
|
|
— |
|
|
|
— |
|
|
|
515 |
|
|
|
— |
|
Depreciation and amortization expense |
|
149 |
|
|
|
153 |
|
|
|
151 |
|
|
|
302 |
|
|
|
318 |
|
Gains on extinguishment of |
|
(515 |
) |
|
|
— |
|
|
|
— |
|
|
|
(515 |
) |
|
|
— |
|
Adjusted Segment EBITDA |
$ |
(10,487 |
) |
|
$ |
(9,129 |
) |
|
$ |
(10,029 |
) |
|
$ |
(19,616 |
) |
|
$ |
(20,524 |
) |
________________
(B) |
The term Adjusted Segment EBITDA consists of operating income (loss) plus other income (expense), depreciation and amortization expense, impairment of goodwill, and facility consolidation and other charges, less gains on extinguishment of 2026 Notes. Adjusted Segment EBITDA is not a measure of financial performance under GAAP and should not be considered in isolation from or as a substitute for operating income (loss) or cash flow measures prepared in accordance with GAAP or as a measure of profitability or liquidity. Additionally, Adjusted Segment EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included Adjusted Segment EBITDA as supplemental disclosure because its management believes that Adjusted Segment EBITDA provides 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 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 table above sets forth reconciliations of Adjusted Segment EBITDA to operating income (loss), which is the most directly comparable measure of financial performance calculated under GAAP. |
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES |
|||||||||||||||||
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL INFORMATION |
|||||||||||||||||
ADJUSTED NET INCOME (LOSS), EXCLUDING CHARGES AND CREDITS (C) AND |
|||||||||||||||||
ADJUSTED NET INCOME (LOSS) PER SHARE, EXCLUDING CHARGES AND CREDITS (D) |
|||||||||||||||||
(In Thousands, Except Per Share Amounts) |
|||||||||||||||||
(Unaudited) |
|||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
1,301 |
|
|
$ |
(13,374 |
) |
|
$ |
558 |
|
$ |
(12,073 |
) |
|
$ |
2,716 |
Impairment of goodwill |
|
— |
|
|
|
10,000 |
|
|
|
— |
|
|
10,000 |
|
|
|
— |
Facility consolidation and other charges |
|
4,426 |
|
|
|
2,509 |
|
|
|
— |
|
|
6,935 |
|
|
|
— |
Gains on extinguishment of |
|
(515 |
) |
|
|
— |
|
|
|
— |
|
|
(515 |
) |
|
|
— |
Total adjustments, before taxes |
|
3,911 |
|
|
|
12,509 |
|
|
|
— |
|
|
16,420 |
|
|
|
— |
Tax benefit |
|
(821 |
) |
|
|
(1,008 |
) |
|
|
— |
|
|
(1,829 |
) |
|
|
— |
Total adjustments, net of taxes |
|
3,090 |
|
|
|
11,501 |
|
|
|
— |
|
|
14,591 |
|
|
|
— |
Adjusted net income (loss), excluding charges and credits |
$ |
4,391 |
|
|
$ |
(1,873 |
) |
|
$ |
558 |
|
$ |
2,518 |
|
|
$ |
2,716 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted weighted average number of diluted common shares outstanding (E) |
|
62,704 |
|
|
|
62,503 |
|
|
|
63,174 |
|
|
62,708 |
|
|
|
63,161 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted diluted net income (loss) per share, excluding charges and credits (E) |
$ |
0.07 |
|
|
$ |
(0.03 |
) |
|
$ |
0.01 |
|
$ |
0.04 |
|
|
$ |
0.04 |
________________
(C) |
Adjusted net income (loss), excluding charges and credits consists of net income (loss) plus impairment of goodwill and facility consolidation and other charges, less gains on extinguishment of the 2026 Notes. Adjusted net income (loss), excluding charges and credits is not a measure of financial performance under GAAP and should not be considered in isolation from or as a substitute for net income (loss) as prepared in accordance with GAAP. The Company has included adjusted net income (loss), excluding charges and credits as a supplemental disclosure because its management believes that adjusted net income (loss), excluding charges and credits provides investors a helpful measure for comparing its operating performance with previous and subsequent periods. |
|
(D) |
Adjusted net income (loss) per share, excluding charges and credits is calculated as adjusted net income (loss), excluding charges and credits divided by the weighted average number of common shares outstanding. Adjusted net income (loss) per share, excluding charges and credits is not a measure of financial performance under GAAP and should not be considered in isolation from or as a substitute for net income (loss) per share as prepared in accordance with GAAP. The Company has included adjusted net income (loss) per share, excluding charges and credits as a supplemental disclosure because its management believes that adjusted net income (loss) per share, excluding charges and credits provides investors a helpful measure for comparing its operating performance with previous and subsequent periods. |
|
(E) |
The calculation of diluted adjusted earnings per share for the six months ended June 30, 2024 included 215 thousand shares issuable pursuant to outstanding performance share units. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240729495423/en/
Lloyd A. Hajdik
Oil States International, Inc.
Executive Vice President, Chief Financial Officer and Treasurer
(713) 652-0582
Source: Oil States International, Inc.
FAQ
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