Civeo Corporation (NYSE:CVEO) today reported financial and
operating results for the second quarter ended June 30, 2017.
Highlights include:
- Delivered second quarter revenues of $92.0 million primarily
due to higher than expected occupancy in Canada
- Reduced net loss sequentially to $14.8 million from $21.0
million, and generated $18.6 million in Adjusted EBITDA,
sequentially higher in all three segments
- Awarded four accommodation contracts for pipeline projects in
Canada with expected revenue totaling approximately C$20
million
“Despite the continuing macroeconomic headwinds impacting our
industry, we delivered strong operational results during the second
quarter. Although we are still seeing pricing volatility
across our end-markets, we continue to secure new work. During the
quarter, we were awarded four accommodation contracts for pipeline
projects in Canada with expected revenue totaling approximately
C$20 million. We also experienced increased occupancy in the US
Permian and Bakken regions, stronger than anticipated performance
in our Canadian lodges, and continued improvement in our Australian
operations occupancy driven by shorter-term work in the mining
sector.” said Bradley J. Dodson, President and Chief Executive
Officer.
Mr. Dodson concluded, “We remain focused on our strategic
priorities which include delevering our balance sheet, improving
operational efficiencies across all segments, and generating free
cash flow to pursue opportunistic growth opportunities and reduce
debt. To that end, we continue to vigilantly adhere to our
operational standards of providing best-in-class service to our
customers, including implementing technology to enhance the guest
experience such as our a la carte food ordering system.”
Second Quarter 2017 Results
In the second quarter of 2017, Civeo generated revenues of $92.0
million and reported a net loss of $14.8 million, or $0.11 per
share. During the second quarter of 2017, Civeo generated operating
cash flow of $4.6 million, Adjusted EBITDA of $18.6 million, and
free cash flow of $3.0 million.
(EBITDA is a non-GAAP financial measure that is defined as net
income plus interest, taxes, depreciation and amortization, and
Adjusted EBITDA is defined as EBITDA adjusted to exclude impairment
charges and the costs directly associated with Civeo’s
redomiciliation to Canada. Free cash flow is a non-GAAP financial
measure that is defined as net cash flows provided by operating
activities less capital expenditures plus proceeds from asset
sales. Please see the reconciliations to GAAP measures at the end
of this news release.)
By comparison, in the second quarter of 2016, Civeo generated
revenues of $107.0 million and reported a net loss of $11.5
million, or $0.11 per share. That net loss included the
impact of $0.2 million of pre-tax expense related to Civeo’s
redomiciliation to Canada. During the second quarter of 2016, Civeo
generated operating cash flow of $23.9 million, Adjusted EBITDA of
$26.9 million and free cash flow of $19.2 million.
Revenues, operating cash flow and Adjusted EBITDA declined, and
net loss increased, in the second quarter of 2017 as compared to
the second quarter of 2016, primarily due to higher Canadian lodge
occupancy in the 2016 quarter during and after the Ft. McMurray
wild fires.
Business Segment Results
(Unless otherwise noted, the following discussion compares the
quarterly results for the second quarter of 2017 to the results for
the second quarter of 2016. The Adjusted EBITDA amounts discussed
below exclude the fixed asset impairment and
redomiciliation-related expenses noted above.)
Canada
During the second quarter of 2017, the Canadian segment
generated revenues of $57.7 million, operating loss of $9.6 million
and Adjusted EBITDA of $14.7 million, compared to revenues of $77.1
million, operating income of $0.7 million and Adjusted EBITDA of
$23.9 million in the second quarter of 2016. Results reflect the
impact of a weaker Canadian dollar relative to the U.S. dollar,
which reduced revenues by $2.5 million and Adjusted EBITDA by $0.6
million. On a constant currency basis, revenues decreased
primarily due to the Canadian outperformance in the 2016 quarter
related to the Ft. McMurray fires. These items were partially
offset by higher lodge occupancy related to customer construction
and maintenance projects.
Australia
The financial results of the Australian segment for the second
quarter of 2017 were comparable to the second quarter in 2016.
Revenue was $28.6 million, operating loss was $3.4 million and
Adjusted EBITDA was $10.8 million in the second quarter of 2017,
compared to revenues of $27.5 million, operating loss of $0.9
million and Adjusted EBITDA of $11.0 million in the second quarter
of 2016.
U.S.
The U.S. segment generated revenues of $5.7 million, operating
loss of $3.6 million and an Adjusted EBITDA loss of $1.1 million in
the second quarter of 2017, compared to revenues of $2.4 million,
operating loss of $3.8 million and an Adjusted EBITDA loss of $2.4
million in the second quarter of 2016. The Adjusted EBITDA increase
was primarily due to the year-over-year improvement in occupancy at
our West Permian and Killdeer lodges, continued improvement in our
wellsite business resulting from increased U.S. drilling and
completion activity in the Bakken, Rockies and Texas markets and
cost containment measures put in place in 2016.
Income Taxes
Civeo recognized an income tax benefit of $2.9 million, which
resulted in an effective tax rate of 16.5% in the second quarter of
2017. During the second quarter of 2016, Civeo recognized an income
tax benefit of $0.9 million, which resulted in an effective tax
rate of 7.7%.
Financial Condition
As of June 30, 2017, Civeo had total liquidity of approximately
$144.8 million, consisting of $117.5 million available under its
revolving credit facilities and $27.3 million of cash on hand.
Civeo’s total debt outstanding at June 30, 2017 was $320.2
million, a $3.7 million increase over the first quarter of
2017. The increase in debt from March 31, 2017 was due to the
Canadian dollar strengthening versus the U.S. dollar toward the end
of the second quarter, partially offset by $4.0 million in debt
reduction payments.
During the second quarter of 2017, Civeo invested $2.2 million
in capital expenditures, down from $5.1 million during the second
quarter of 2016. For both periods, such capital expenditures
were primarily for routine maintenance.
Third Quarter and Full Year 2017 Guidance
For the third quarter of 2017, Civeo expects revenues of $89
million to $95 million and EBITDA of $16.0 million to $18.5
million. For the full year of 2017, Civeo expects revenues of $354
million to $363 million and EBITDA of $61 million to $66 million.
Civeo expects capital expenditures of approximately $12 to $15
million for the full year 2017.
Conference Call
Civeo will host a conference call to discuss its second quarter
2017 financial results today at 11:00 a.m. Eastern time. This call
is being webcast and can be accessed at Civeo's website at
www.civeo.com. Participants may also join the conference call by
dialing (888) 708-5689 in the United States or (913) 312-0381
internationally and using the conference ID 5801271. A replay will
be available after the call by dialing (844) 512-2921 in the United
States or (412) 317-6671 internationally and using the conference
ID 5801271.
About Civeo
Civeo Corporation is a leading provider of workforce
accommodations with prominent market positions in the Canadian oil
sands and the Australian natural resource regions. Civeo offers
comprehensive solutions for housing hundreds or thousands of
workers with its long-term and temporary accommodations and
provides catering, facility management, water systems and logistics
services. Civeo currently owns a total of 19 lodges and villages in
operation in Canada and Australia, with an aggregate of more than
23,000 rooms. Civeo is publicly traded under the symbol CVEO on the
New York Stock Exchange. For more information, please visit Civeo's
website at www.civeo.com.
Forward Looking Statements
This news release contains forward-looking statements within the
meaning 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 in this news release include the statements regarding
Civeo’s: views regarding broadening stabilization in its core
end markets; improving performance in its Australian and U.S.
segments and continued signs of improvement in fundamental
macro-economic drivers; optimism about market demand in 2017; and
third quarter and full year 2017 guidance. The forward-looking
statements included herein are based on then current expectations
and entail various risks and uncertainties that could cause actual
results to differ materially from those expressed or implied by
these forward-looking statements. Such risks and uncertainties
include, among other things, risks associated with the general
nature of the accommodations industry, risks associated with the
level of supply and demand for oil, coal, natural gas, iron ore and
other minerals, including the level of activity and developments in
the Canadian oil sands, the level of demand for coal and other
natural resources from Australia, and fluctuations in the current
and future prices of oil, coal, natural gas, iron ore and other
minerals, risks associated with currency exchange rates, risks
associated with Civeo’s redomiciliation to Canada, including, among
other things, risks associated with changes in tax laws or their
interpretations, risks associated with the development of new
projects, including whether such projects will continue in the
future, and other factors discussed in the " Management’s
Discussion and Analysis of Financial Condition and Results of
Operations " and "Risk Factors" sections of Civeo’s annual report
on Form 10-K for the year ended December 31, 2016, and other
reports the Company may file from time to time with the U.S.
Securities and Exchange Commission. Each forward-looking statement
contained in this news release speaks only as of the date of this
release. Except as required by law, Civeo expressly disclaims any
intention or obligation to revise or update any forward-looking
statements, whether as a result of new information, future events
or otherwise.
- Financial Schedules Follow -
CIVEO CORPORATION UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS (in
thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED JUNE
30, |
|
SIX MONTHS ENDED JUNE
30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
92,010 |
|
|
$ |
107,035 |
|
|
$ |
183,439 |
|
|
$ |
202,071 |
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
Cost of
sales and services |
|
|
59,484 |
|
|
|
64,586 |
|
|
|
121,156 |
|
|
|
130,529 |
|
|
Selling,
general and administrative expenses |
|
|
14,060 |
|
|
|
15,295 |
|
|
|
28,270 |
|
|
|
28,412 |
|
|
Depreciation and amortization expense |
|
|
31,554 |
|
|
|
33,168 |
|
|
|
64,383 |
|
|
|
66,723 |
|
|
Impairment expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8,400 |
|
|
Other
operating expense |
|
|
279 |
|
|
|
- |
|
|
|
729 |
|
|
|
218 |
|
|
|
|
|
105,377 |
|
|
|
113,049 |
|
|
|
214,538 |
|
|
|
234,282 |
|
|
Operating loss |
|
|
(13,367 |
) |
|
|
(6,014 |
) |
|
|
(31,099 |
) |
|
|
(32,211 |
) |
|
|
|
|
|
|
|
|
|
|
|
Interest expense to
third parties, net of capitalized interest |
|
|
(4,752 |
) |
|
|
(5,925 |
) |
|
|
(10,256 |
) |
|
|
(10,869 |
) |
|
Loss on extinguishment
of debt |
|
|
- |
|
|
|
- |
|
|
|
(842 |
) |
|
|
(302 |
) |
|
Interest income |
|
|
10 |
|
|
|
28 |
|
|
|
20 |
|
|
|
114 |
|
|
Other income
(expense) |
|
|
476 |
|
|
|
(392 |
) |
|
|
730 |
|
|
|
(280 |
) |
|
Loss
before income taxes |
|
|
(17,633 |
) |
|
|
(12,303 |
) |
|
|
(41,447 |
) |
|
|
(43,548 |
) |
|
Income tax benefit |
|
|
2,916 |
|
|
|
949 |
|
|
|
5,864 |
|
|
|
5,520 |
|
|
Net loss |
|
|
(14,717 |
) |
|
|
(11,354 |
) |
|
|
(35,583 |
) |
|
|
(38,028 |
) |
|
Less: Net income attributable to noncontrolling interest |
|
|
99 |
|
|
|
132 |
|
|
|
220 |
|
|
|
280 |
|
|
Net loss attributable
to Civeo Corporation |
|
$ |
(14,816 |
) |
|
$ |
(11,486 |
) |
|
$ |
(35,803 |
) |
|
$ |
(38,308 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net loss
per share attributable to Civeo Corporation common
shareholders: |
|
|
|
|
|
|
|
Basic |
|
$ |
(0.11 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.36 |
) |
|
Diluted |
|
$ |
(0.11 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.36 |
) |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
|
130,692 |
|
|
|
107,033 |
|
|
|
125,796 |
|
|
|
106,923 |
|
|
Diluted |
|
|
130,692 |
|
|
|
107,033 |
|
|
|
125,796 |
|
|
|
106,923 |
|
|
|
|
|
|
|
|
|
|
|
|
CIVEO CORPORATION CONSOLIDATED
BALANCE SHEETS |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
JUNE 30,
2017 |
|
DECEMBER 31,
2016 |
|
|
|
(UNAUDITED) |
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
27,326 |
|
|
$ |
1,785 |
|
|
Accounts receivable, net |
|
|
60,122 |
|
|
|
56,302 |
|
|
Inventories |
|
|
3,900 |
|
|
|
3,112 |
|
|
Prepaid expenses and other current assets |
|
|
23,891 |
|
|
|
21,369 |
|
|
Total current assets |
|
|
115,239 |
|
|
|
82,568 |
|
|
|
|
|
|
|
|
Property, plant and
equipment, net |
|
|
766,258 |
|
|
|
789,710 |
|
|
Other
intangible assets, net |
|
|
26,056 |
|
|
|
28,039 |
|
|
Other
noncurrent assets |
|
|
9,035 |
|
|
|
10,129 |
|
|
Total assets |
|
$ |
916,588 |
|
|
$ |
910,446 |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts payable |
|
$ |
20,393 |
|
|
$ |
20,675 |
|
|
Accrued liabilities |
|
|
11,713 |
|
|
|
14,822 |
|
|
Income taxes |
|
|
35 |
|
|
|
111 |
|
|
Current portion of long-term debt |
|
|
16,006 |
|
|
|
15,471 |
|
|
Deferred revenue |
|
|
2,702 |
|
|
|
6,792 |
|
|
Other current liabilities |
|
|
1,900 |
|
|
|
2,572 |
|
|
Total current liabilities |
|
|
52,749 |
|
|
|
60,443 |
|
|
|
|
|
|
|
|
Long-term debt to
third-parties |
|
|
300,180 |
|
|
|
337,800 |
|
|
Deferred income
taxes |
|
|
2,404 |
|
|
|
9,194 |
|
|
Other noncurrent
liabilities |
|
|
29,188 |
|
|
|
27,019 |
|
|
Total liabilities |
|
|
384,521 |
|
|
|
434,456 |
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
Common shares |
|
|
- |
|
|
|
- |
|
|
Additional paid-in capital |
|
|
1,380,429 |
|
|
|
1,311,226 |
|
|
Accumulated deficit |
|
|
(509,203 |
) |
|
|
(472,764 |
) |
|
Treasury stock |
|
|
(358 |
) |
|
|
(65 |
) |
|
Accumulated other comprehensive loss |
|
|
(338,903 |
) |
|
|
(362,930 |
) |
|
Total Civeo Corporation shareholders' equity |
|
|
531,965 |
|
|
|
475,467 |
|
|
Noncontrolling interest |
|
|
102 |
|
|
|
523 |
|
|
Total shareholders' equity |
|
|
532,067 |
|
|
|
475,990 |
|
|
Total liabilities and shareholders' equity |
|
$ |
916,588 |
|
|
$ |
910,446 |
|
|
|
|
|
|
|
|
CIVEO CORPORATION UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
(in thousands) |
|
|
|
|
|
|
|
|
|
SIX MONTHS ENDED JUNE
30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
Cash flows from
operating activities: |
|
|
|
|
|
Net loss |
|
$ |
(35,583 |
) |
|
$ |
(38,028 |
) |
|
Adjustments to
reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
|
Depreciation and
amortization |
|
|
64,383 |
|
|
|
66,723 |
|
|
Impairment
charges |
|
|
- |
|
|
|
8,400 |
|
|
Loss on
extinguishment of debt |
|
|
842 |
|
|
|
302 |
|
|
Deferred income
tax benefit |
|
|
(6,732 |
) |
|
|
(8,026 |
) |
|
Non-cash
compensation charge |
|
|
3,750 |
|
|
|
3,077 |
|
|
Losses (gains)
on disposals of assets |
|
|
(854 |
) |
|
|
377 |
|
|
Provision
(benefit) for loss on receivables, net of recoveries |
|
|
(57 |
) |
|
|
(112 |
) |
|
Other,
net |
|
|
2,147 |
|
|
|
2,282 |
|
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
Accounts receivable |
|
|
(1,639 |
) |
|
|
(6,140 |
) |
|
Inventories |
|
|
(664 |
) |
|
|
979 |
|
|
Accounts payable and accrued liabilities |
|
|
(4,499 |
) |
|
|
4,735 |
|
|
Taxes payable |
|
|
639 |
|
|
|
(565 |
) |
|
Other current assets and liabilities, net |
|
|
(7,332 |
) |
|
|
1,189 |
|
|
Net cash
flows provided by operating activities |
|
|
14,401 |
|
|
|
35,193 |
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
Capital
expenditures, including capitalized interest |
|
|
(6,037 |
) |
|
|
(9,893 |
) |
|
Proceeds from
disposition of property, plant and equipment |
|
|
1,160 |
|
|
|
2,105 |
|
|
Other,
net |
|
|
375 |
|
|
|
(1,542 |
) |
|
Net cash
flows used in investing activities |
|
|
(4,502 |
) |
|
|
(9,330 |
) |
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
Proceeds from
issuance of common stock |
|
|
64,817 |
|
|
|
- |
|
|
Term loan
repayments |
|
|
(8,000 |
) |
|
|
(33,097 |
) |
|
Revolving credit
borrowings (repayments), net |
|
|
(39,937 |
) |
|
|
4,755 |
|
|
Debt issuance
costs |
|
|
(1,795 |
) |
|
|
(2,022 |
) |
|
Other |
|
|
(293 |
) |
|
|
(65 |
) |
|
Net cash
flows provided by (used in) financing activities |
|
|
14,792 |
|
|
|
(30,429 |
) |
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash |
|
|
850 |
|
|
|
(1,016 |
) |
|
Net change in cash and
cash equivalents |
|
|
25,541 |
|
|
|
(5,582 |
) |
|
|
|
|
|
|
|
Cash and cash
equivalents, beginning of period |
|
|
1,785 |
|
|
|
7,837 |
|
|
|
|
|
|
|
|
Cash and cash
equivalents, end of period |
|
$ |
27,326 |
|
|
$ |
2,255 |
|
|
|
|
|
|
|
|
CIVEO CORPORATION SEGMENT
DATA (in thousands)
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED JUNE
30, |
|
SIX MONTHS ENDED JUNE
30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
Revenues |
|
|
|
|
|
|
|
|
|
Canada |
|
$ |
57,668 |
|
|
$ |
77,107 |
|
|
$ |
118,174 |
|
|
$ |
142,629 |
|
|
Australia |
|
|
28,607 |
|
|
|
27,505 |
|
|
|
55,623 |
|
|
|
53,015 |
|
|
United
States |
|
|
5,735 |
|
|
|
2,423 |
|
|
|
9,642 |
|
|
|
6,427 |
|
|
Total revenues |
|
$ |
92,010 |
|
|
$ |
107,035 |
|
|
$ |
183,439 |
|
|
$ |
202,071 |
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (1) |
|
|
|
|
|
|
|
|
|
Canada |
|
$ |
14,709 |
|
|
$ |
23,743 |
|
|
$ |
27,898 |
|
|
$ |
37,791 |
|
|
Australia |
|
|
10,810 |
|
|
|
11,046 |
|
|
|
21,431 |
|
|
|
21,789 |
|
|
United
States |
|
|
(1,083 |
) |
|
|
(2,431 |
) |
|
|
(2,345 |
) |
|
|
(13,901 |
) |
|
Corporate and
eliminations |
|
|
(5,872 |
) |
|
|
(5,728 |
) |
|
|
(13,190 |
) |
|
|
(11,727 |
) |
|
Total EBITDA |
|
$ |
18,564 |
|
|
$ |
26,630 |
|
|
$ |
33,794 |
|
|
$ |
33,952 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1) |
|
|
|
|
|
|
|
|
|
Canada |
|
$ |
14,709 |
|
|
$ |
23,861 |
|
|
$ |
27,898 |
|
|
$ |
38,032 |
|
|
Australia |
|
|
10,810 |
|
|
|
11,046 |
|
|
|
21,431 |
|
|
|
21,809 |
|
|
United
States |
|
|
(1,083 |
) |
|
|
(2,431 |
) |
|
|
(2,345 |
) |
|
|
(5,501 |
) |
|
Corporate and
eliminations |
|
|
(5,872 |
) |
|
|
(5,610 |
) |
|
|
(13,190 |
) |
|
|
(10,717 |
) |
|
Total adjusted EBITDA |
|
$ |
18,564 |
|
|
$ |
26,866 |
|
|
$ |
33,794 |
|
|
$ |
43,623 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) |
|
|
|
|
|
|
|
|
|
Canada |
|
$ |
(9,586 |
) |
|
$ |
683 |
|
|
$ |
(14,592 |
) |
|
$ |
(9,016 |
) |
|
Australia |
|
|
(3,416 |
) |
|
|
(914 |
) |
|
|
(4,617 |
) |
|
|
(2,536 |
) |
|
United
States |
|
|
(3,604 |
) |
|
|
(3,792 |
) |
|
|
(6,406 |
) |
|
|
(17,391 |
) |
|
Corporate and
eliminations |
|
|
3,239 |
|
|
|
(1,991 |
) |
|
|
(5,484 |
) |
|
|
(3,268 |
) |
|
Total operating loss |
|
$ |
(13,367 |
) |
|
$ |
(6,014 |
) |
|
$ |
(31,099 |
) |
|
$ |
(32,211 |
) |
|
|
|
|
|
|
|
|
|
|
|
(1) Please
see Non-GAAP Reconciliation Schedule. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CIVEO CORPORATION NON-GAAP
RECONCILIATIONS (in thousands)
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED JUNE
30, |
|
SIX MONTHS ENDED JUNE
30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (1) |
|
$ |
18,564 |
|
|
$ |
26,630 |
|
|
$ |
33,794 |
|
|
$ |
33,952 |
|
|
Adjusted EBITDA
(1) |
|
$ |
18,564 |
|
|
$ |
26,866 |
|
|
$ |
33,794 |
|
|
$ |
43,623 |
|
|
Free Cash Flow (2) |
|
$ |
2,981 |
|
|
$ |
19,237 |
|
|
$ |
9,524 |
|
|
$ |
27,405 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) The term EBITDA is defined as net income (loss) plus
interest, taxes, depreciation and amortization. The term Adjusted
EBITDA is defined as EBITDA adjusted to exclude impairment charges
and certain costs associated with Civeo's redomiciliation.
EBITDA and Adjusted 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 income or cash flow measures prepared in accordance with
generally accepted accounting principles or as a measure of
profitability or liquidity. Additionally, EBITDA and Adjusted
EBITDA may not be comparable to other similarly titled measures of
other companies. Civeo has included EBITDA and Adjusted EBITDA as
supplemental disclosures because its management believes that
EBITDA and Adjusted EBITDA provide useful information regarding its
ability to service debt and to fund capital expenditures and
provide investors a helpful measure for comparing the Civeo's
operating performance with the performance of other companies that
have different financing and capital structures or tax rates. Civeo
uses EBITDA and Adjusted 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 following table sets forth a reconciliation of EBITDA and
Adjusted EBITDA to net loss, which is the most directly comparable
measure of financial performance calculated under generally
accepted accounting principles (in thousands) (unaudited): |
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED JUNE
30, |
|
SIX MONTHS ENDED JUNE
30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
$ |
(14,816 |
) |
|
$ |
(11,486 |
) |
|
$ |
(35,803 |
) |
|
$ |
(38,308 |
) |
|
Income
tax benefit |
|
|
(2,916 |
) |
|
|
(949 |
) |
|
|
(5,864 |
) |
|
|
(5,520 |
) |
|
Depreciation and amortization |
|
|
31,554 |
|
|
|
33,168 |
|
|
|
64,383 |
|
|
|
66,723 |
|
|
Interest
income |
|
|
(10 |
) |
|
|
(28 |
) |
|
|
(20 |
) |
|
|
(114 |
) |
|
Loss on
extinguishment of debt |
|
|
- |
|
|
|
- |
|
|
|
842 |
|
|
|
302 |
|
|
Interest
expense |
|
|
4,752 |
|
|
|
5,925 |
|
|
|
10,256 |
|
|
|
10,869 |
|
|
EBITDA |
|
$ |
18,564 |
|
|
$ |
26,630 |
|
|
$ |
33,794 |
|
|
$ |
33,952 |
|
|
Adjustments to EBITDA |
|
|
|
|
|
|
|
|
|
Impairment expense (a) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8,400 |
|
|
Redomiciliation costs (b) |
|
|
- |
|
|
|
236 |
|
|
|
- |
|
|
|
1,271 |
|
|
Adjusted EBITDA |
|
$ |
18,564 |
|
|
$ |
26,866 |
|
|
$ |
33,794 |
|
|
$ |
43,623 |
|
|
|
|
|
|
|
|
|
|
|
|
(a) Relates to the first quarter 2016 impairment of assets in
the United States. We recorded a pre-tax loss of $8.4 million
($5.5 million after-tax, or $0.05 per diluted share), which is
included in Impairment expense on the unaudited statements of
operations. |
|
|
|
|
|
|
|
|
|
|
|
(b) Relates to costs incurred associated with Civeo's
redomiciliation to Canada. The $0.2 million and $1.3 million
of costs in 2016 ($0.2 million and $1.2 million after-tax, or $0.00
and $0.01, per diluted share, respectively), which are primarily
corporate in nature, are included in Selling, general and
administrative costs on the unaudited statements of
operations. |
|
|
|
|
|
|
|
|
|
|
|
(2) The term Free Cash Flow is defined as net cash flows
provided by operating activities less capital expenditures plus
proceeds from asset sales. Free Cash Flow is not a measure of
financial performance under generally accepted accounting
principles and should not be considered in isolation from or as a
substitute for cash flow measures prepared in accordance with
generally accepted accounting principles or as a measure of
profitability or liquidity. Additionally, Free Cash Flow may not be
comparable to other similarly titled measures of other companies.
Civeo has included Free Cash Flow as a supplemental disclosure
because its management believes that Free Cash Flow provides useful
information regarding the cash flow generating ability of its
business relative to its capital expenditure and debt service
obligations. Civeo uses Free Cash Flow to compare and to
understand, manage, make operating decisions and evaluate Civeo's
business. It is also used as a benchmark for the award of
incentive compensation under its Free Cash Flow plan. |
|
The following table sets forth a reconciliation of Free Cash
Flow to Net Cash Flows Provided by Operating Activities, which is
the most directly comparable measure of financial performance
calculated under generally accepted accounting principles (in
thousands) (unaudited): |
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED JUNE
30, |
|
SIX MONTHS ENDED JUNE
30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash
Flows Provided by Operating Activities |
|
$ |
4,553 |
|
|
$ |
23,863 |
|
|
$ |
14,401 |
|
|
$ |
35,193 |
|
|
Capital expenditures, including capitalized interest |
|
|
(2,154 |
) |
|
|
(5,132 |
) |
|
|
(6,037 |
) |
|
|
(9,893 |
) |
|
Proceeds from disposition of property, plant and
equipment |
|
582 |
|
|
|
506 |
|
|
|
1,160 |
|
|
|
2,105 |
|
|
Free Cash Flow |
|
$ |
2,981 |
|
|
$ |
19,237 |
|
|
$ |
9,524 |
|
|
$ |
27,405 |
|
|
|
|
CIVEO CORPORATION NON-GAAP
RECONCILIATIONS - GUIDANCE (in millions)
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDING SEPTEMBER 30,
2017 |
|
YEAR ENDING DECEMBER 31,
2017 |
|
EBITDA Range (1) |
|
$ |
16.0 |
|
|
$ |
18.5 |
|
|
$ |
61.0 |
|
|
$ |
66.0 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) The following table sets forth a reconciliation of
estimated EBITDA to estimated net loss, which is the most directly
comparable measure of financial performance calculated under
generally accepted accounting principles (in millions)
(unaudited): |
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDINGSEPTEMBER 30,
2017 |
|
YEAR ENDING DECEMBER 31,
2017 |
|
|
|
(estimated) |
|
(estimated) |
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
$ |
(18.0 |
) |
|
$ |
(16.0 |
) |
|
$ |
(76.0 |
) |
|
$ |
(73.0 |
) |
|
Income
tax benefit |
|
|
(2.0 |
) |
|
|
(1.5 |
) |
|
|
(11.0 |
) |
|
|
(9.0 |
) |
|
Depreciation and amortization |
|
|
32.0 |
|
|
|
32.0 |
|
|
|
128.0 |
|
|
|
128.0 |
|
|
Interest
expense |
|
|
4.0 |
|
|
|
4.0 |
|
|
|
20.0 |
|
|
|
20.0 |
|
|
EBITDA |
|
$ |
16.0 |
|
|
$ |
18.5 |
|
|
$ |
61.0 |
|
|
$ |
66.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CIVEO CORPORATION
SUPPLEMENTAL QUARTERLY SEGMENT AND OPERATING DATA
(U.S. dollars in thousands, except for room counts and
average daily rates) (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED JUNE
30, |
|
SIX MONTHS ENDED JUNE
30, |
|
|
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Operating Data - Canadian Segment |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
Lodge revenues (1) |
|
$ |
53,250 |
|
|
$ |
66,301 |
|
|
$ |
109,170 |
|
|
$ |
121,187 |
|
|
Mobile, open camp and product revenues |
|
|
4,418 |
|
|
|
10,806 |
|
|
|
9,004 |
|
|
|
21,442 |
|
|
Total Canadian revenues |
|
$ |
57,668 |
|
|
$ |
77,107 |
|
|
$ |
118,174 |
|
|
$ |
142,629 |
|
|
|
|
|
|
|
|
|
|
|
|
Average
available lodge rooms (2) |
|
|
14,720 |
|
|
|
14,670 |
|
|
|
14,720 |
|
|
|
14,636 |
|
|
|
|
|
|
|
|
|
|
|
|
Rentable rooms
(3) |
|
|
8,138 |
|
|
|
10,902 |
|
|
|
8,496 |
|
|
|
10,003 |
|
|
|
|
|
|
|
|
|
|
|
|
Average daily
rates (4) |
|
$ |
89 |
|
|
$ |
108 |
|
|
$ |
93 |
|
|
$ |
110 |
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy in
lodges (5) |
|
|
81 |
% |
|
|
62 |
% |
|
|
76 |
% |
|
|
61 |
% |
|
|
|
|
|
|
|
|
|
|
|
Canadian dollar
to U.S. dollar |
|
$ |
0.744 |
|
|
$ |
0.776 |
|
|
$ |
0.750 |
|
|
$ |
0.752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Operating Data - Australian Segment |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
Village revenues (1) |
|
$ |
28,607 |
|
|
$ |
27,505 |
|
|
$ |
55,623 |
|
|
$ |
53,015 |
|
|
|
|
|
|
|
|
|
|
|
|
Average
available village rooms (2) |
|
|
9,386 |
|
|
|
9,312 |
|
|
|
9,386 |
|
|
|
9,304 |
|
|
|
|
|
|
|
|
|
|
|
|
Rentable rooms
(3) |
|
|
8,760 |
|
|
|
8,730 |
|
|
|
8,767 |
|
|
|
8,713 |
|
|
|
|
|
|
|
|
|
|
|
|
Average daily
rates (4) |
|
$ |
80 |
|
|
$ |
76 |
|
|
$ |
81 |
|
|
$ |
72 |
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy in
villages (5) |
|
|
45 |
% |
|
|
45 |
% |
|
|
43 |
% |
|
|
46 |
% |
|
|
|
|
|
|
|
|
|
|
|
Australian
dollar to U.S. dollar |
|
$ |
0.751 |
|
|
$ |
0.746 |
|
|
$ |
0.755 |
|
|
$ |
0.734 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes revenue related to rooms as well as the
fees associated with catering, laundry and other services including
facilities management. |
|
|
|
|
|
|
|
|
|
|
|
(2) Average available rooms relate to Canadian lodges
and Australian villages and includes rooms that are utilized for
our personnel. |
|
|
|
|
|
|
|
|
|
|
|
(3) Rentable rooms relate to Canadian lodges and
Australian villages and excludes rooms that are utilized for our
personnel and out-of-service rooms. |
|
|
|
|
|
|
|
|
|
|
|
(4) Average daily rate is based on rentable rooms and
lodge/village revenue. |
|
|
|
|
|
|
|
|
|
|
|
(5) Occupancy represents total billed days divided by
rentable days. Rentable days excludes staff rooms and
out-of-service rooms. |
|
|
|
|
|
|
|
|
|
|
|
Contacts:
Frank C. Steininger
Civeo Corporation
Senior Vice President and Chief Financial Officer
713-510-2400
Marc Cunningham
Jeffrey Spittel
FTI Consulting
713-353-5407
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