- Net income of $0.6 million, or $0.01 per diluted share,
reported for the quarter
- Revenue of $183.5 million, while down 6% sequentially,
increased 1% year-over-year
- Adjusted EBITDA (a non-GAAP measure(1)) of $19.0 million
decreased $2.4 million sequentially but increased $2.0 million
year-over-year
- Generated operating cash flow of $44.7 million in the
quarter
- Offshore/Manufactured Products segment's backlog increased
sequentially for a fourth consecutive quarter totaling $338 million
as of June 30, with a quarterly book-to-bill ratio of 1.1x
- Invested $3.0 million in share repurchases
Oil States International, Inc. (NYSE: OIS):
Three Months Ended
% Change
(Unaudited, In Thousands, Except Per Share
Amounts)
June 30, 2023
March 31, 2023
June 30, 2022
Sequential
Year-over-Year
Consolidated results:
Revenues
$
183,529
$
196,199
$
181,834
(6
)%
1%
Operating income (loss)
$
3,269
$
5,875
$
(1,090
)
(44
)%
nm
Net income (loss)
$
558
$
2,158
$
(5,144
)
(74
)%
nm
Diluted earning per share
$
0.01
$
0.03
$
(0.08
)
(67
)%
nm
Adjusted EBITDA(1)
$
19,016
$
21,407
$
16,988
(11
)%
12%
Revenues by segment:
Offshore/Manufactured Products
$
94,086
$
98,199
$
96,467
(4
)%
(2)%
Well Site Services
64,536
67,058
54,819
(4
)%
18%
Downhole Technologies
24,907
30,942
30,548
(20
)%
(18)%
Operating income (loss) by segment:
Offshore/Manufactured Products
$
11,253
$
11,090
$
9,441
1
%
19 %
Well Site Services
4,732
6,966
601
(32
)%
nm
Downhole Technologies
(2,536
)
(1,519
)
(1,485
)
(67
)%
(71)%
Adjusted Segment EBITDA (a non-GAAP
measure(1)):
Offshore/Manufactured Products
$
15,981
$
15,923
$
14,735
—
%
8 %
Well Site Services
11,425
13,223
8,874
(14
)%
29 %
Downhole Technologies
1,639
2,756
2,854
(41
)%
(43)%
___________________
(1)
Adjusted EBITDA and Adjusted Segment
EBITDA 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.
Oil States International, Inc. reported net income of $0.6
million, or $0.01 per share, for the second quarter of 2023 on
revenues of $183.5 million and Adjusted EBITDA of $19.0 million.
These results compare to revenues of $196.2 million, net income of
$2.2 million, or $0.03 per share, and Adjusted EBITDA of $21.4
million reported in the first quarter of 2023.
Oil States' President and Chief Executive Officer, Cindy B.
Taylor, stated,
"Our reported second quarter results reflect the dueling trends
of activity declines in U.S. shale basins with offsetting growth in
offshore and international regions. Despite sequentially weaker
second quarter revenues and Adjusted EBITDA, we confirm our
full-year guidance of $92 to $100 million of Adjusted EBITDA based
upon expected contributions from the ongoing recovery in offshore
activity. Our forecast is supported by the backlog growth that we
have witnessed at our Offshore/Manufactured Products segment, which
increased to $338 million in the second quarter of 2023 – a
quarter-end level last observed at the end of 2015.
"We generated very strong cash flow from operations of $45
million in the second quarter, invested $11 million in capital
equipment, repurchased $3 million of our common stock and repaid
all amounts outstanding under the revolving credit facility. With
cash on-hand of $42 million and no significant debt maturities
until 2026, we are in a strong position to create stockholder
value.
"We remain encouraged by the continued recovery in offshore
activity coupled with future benefits to be gained from new product
introductions."
Business Segment Results
(See Segment Data and Adjusted Segment EBITDA tables below)
Offshore/Manufactured Products
Offshore/Manufactured Products reported revenues of $94.1
million, operating income of $11.3 million and Adjusted Segment
EBITDA of $16.0 million in the second quarter of 2023, compared to
revenues of $98.2 million, operating income of $11.1 million and
Adjusted Segment EBITDA of $15.9 million reported in the first
quarter of 2023. Adjusted Segment EBITDA margin in the second
quarter of 2023 was 17%, compared to 16% in the prior quarter.
Backlog totaled $338 million as of June 30, 2023, an increase of
$12 million, or 4%, from March 31, 2023 and $97 million, or 40%,
from June 30, 2022. The current quarter-end backlog is at its
highest level since December 31, 2015. Second quarter 2023 bookings
totaled $106 million, yielding a quarterly book-to-bill ratio of
1.1x (1.2x year-to-date).
Well Site Services
Well Site Services reported revenues of $64.5 million, operating
income of $4.7 million and Adjusted Segment EBITDA of $11.4 million
in the second quarter of 2023, compared to revenues of $67.1
million, operating income of $7.0 million and Adjusted Segment
EBITDA of $13.2 million reported in the first quarter of 2023.
Adjusted Segment EBITDA margin was 18% in the second quarter of
2023, compared to 20% in the first quarter of 2023.
Downhole Technologies
Downhole Technologies reported revenues of $24.9 million, an
operating loss of $2.5 million and Adjusted Segment EBITDA of $1.6
million in the second quarter of 2023, compared to revenues of
$30.9 million, an operating loss of $1.5 million and Adjusted
Segment EBITDA of $2.8 million reported in the first quarter of
2023. The segment's second quarter operating results included a
$1.0 million non-cash provision for excess and obsolete inventory.
Adjusted Segment EBITDA margin in the second quarter of 2023 was
7%, compared to 9% in the first quarter of 2023.
Corporate
Corporate operating expenses in the second quarter of 2023
totaled $10.2 million.
Interest Expense, Net
Net interest expense totaled $2.1 million in the second quarter
of 2023, which included $0.4 million of non-cash amortization of
deferred debt issuance costs.
Income Taxes
The Company recognized tax expense of $0.9 million on pre-tax
income of $1.4 million during the second quarter of 2023. In the
first quarter of 2023, the Company recognized a tax expense of $1.6
million on pre-tax income of $3.8 million.
Cash Flows
During the second quarter of 2023, the Company generated cash
flows from operations of $44.7 million and invested $10.8 million
in new equipment to support future growth.
The Company also repurchased 439 thousand shares of its common
stock for $3.0 million in the second quarter of 2023. A total of
$22.0 million remains available under the share repurchase
authorization, which extends through February 2025.
Financial Condition
No borrowings were outstanding under the Company's asset-based
revolving credit facility (the "ABL Facility") at June 30, 2023.
Cash on-hand increased from $15.8 million at March 31, 2023 to
$42.4 million at June 30, 2023. Liquidity (cash plus borrowing
availability) totaled $133.4 million at June 30, 2023, with amounts
available to be drawn under the ABL Facility totaling $90.9
million.
Conference Call
Information
The call is scheduled for July 27, 2023 at 10 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 the
United States or by dialing +1 (646) 960-0253 internationally and
using the passcode 7534957. A replay of the conference call will be
available approximately two 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.
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 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, 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, 2022 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, 2023
March 31, 2023
June 30, 2022
June 30, 2023
June 30, 2022
Revenues:
Products
$
92,630
$
99,840
$
99,033
$
192,470
$
184,794
Services
90,899
96,359
82,801
187,258
161,084
183,529
196,199
181,834
379,728
345,878
Costs and expenses:
Product costs
72,659
78,677
79,388
151,336
144,189
Service costs
69,371
72,058
62,768
141,429
124,571
Cost of revenues (exclusive of
depreciation and amortization expense presented below)
142,030
150,735
142,156
292,765
268,760
Selling, general and administrative
expense
23,528
24,016
23,757
47,544
47,590
Depreciation and amortization expense
15,537
15,256
17,239
30,793
35,056
Other operating (income) expense, net
(835
)
317
(228
)
(518
)
(102
)
180,260
190,324
182,924
370,584
351,304
Operating income (loss)
3,269
5,875
(1,090
)
9,144
(5,426
)
Interest expense, net
(2,059
)
(2,391
)
(2,638
)
(4,450
)
(5,310
)
Other income, net
210
276
376
486
1,401
Income (loss) before income taxes
1,420
3,760
(3,352
)
5,180
(9,335
)
Income tax provision
(862
)
(1,602
)
(1,792
)
(2,464
)
(5,233
)
Net income (loss)
$
558
$
2,158
$
(5,144
)
$
2,716
$
(14,568
)
Net income (loss) per share:
Basic
$
0.01
$
0.03
$
(0.08
)
$
0.04
$
(0.24
)
Diluted
0.01
0.03
(0.08
)
0.04
(0.24
)
Weighted average number of common shares
outstanding:
Basic
62,803
62,825
60,704
62,814
60,601
Diluted
63,174
63,072
60,704
63,161
60,601
OIL STATES INTERNATIONAL, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(In Thousands)
June 30, 2023
December 31, 2022
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
42,420
$
42,018
Accounts receivable, net
180,917
218,769
Inventories, net
205,132
182,658
Prepaid expenses and other current
assets
28,217
19,317
Total current assets
456,686
462,762
Property, plant, and equipment, net
296,015
303,835
Operating lease assets, net
23,266
23,028
Goodwill, net
79,778
79,282
Other intangible assets, net
161,476
169,798
Other noncurrent assets
27,799
25,687
Total assets
$
1,045,020
$
1,064,392
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Current portion of long-term debt
$
513
$
17,831
Accounts payable
56,726
73,251
Accrued liabilities
42,987
49,057
Current operating lease liabilities
6,750
6,142
Income taxes payable
2,740
2,605
Deferred revenue
53,027
44,790
Total current liabilities
162,743
193,676
Long-term debt
135,273
135,066
Long-term operating lease liabilities
20,027
20,658
Deferred income taxes
8,601
6,652
Other noncurrent liabilities
20,271
18,782
Total liabilities
346,915
374,834
Stockholders' equity:
Common stock
772
766
Additional paid-in capital
1,125,647
1,122,292
Retained earnings
274,743
272,027
Accumulated other comprehensive loss
(71,522
)
(78,941
)
Treasury stock
(631,535
)
(626,586
)
Total stockholders' equity
698,105
689,558
Total liabilities and stockholders'
equity
$
1,045,020
$
1,064,392
OIL STATES INTERNATIONAL, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In Thousands)
(Unaudited)
Six Months Ended June
30,
2023
2022
Cash flows from operating activities:
Net income (loss)
$
2,716
$
(14,568
)
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization expense
30,793
35,056
Stock-based compensation expense
3,361
3,504
Amortization of deferred financing
costs
892
944
Deferred income tax provision
997
2,584
Gains on disposals of assets
(561
)
(1,185
)
Settlement of disputes with seller of
GEODynamics, Inc.
—
620
Other, net
(267
)
360
Changes in operating assets and
liabilities, net of effect from acquired business:
Accounts receivable
39,042
(20,469
)
Inventories
(21,197
)
(14,664
)
Accounts payable and accrued
liabilities
(25,924
)
(5,994
)
Deferred revenue
8,237
4,647
Other operating assets and liabilities,
net
653
(870
)
Net cash flows provided by (used in)
operating activities
38,742
(10,035
)
Cash flows from investing activities:
Capital expenditures
(17,338
)
(6,453
)
Proceeds from disposition of property and
equipment
690
1,652
Acquisition of business, net of cash
acquired
—
(8,125
)
Other, net
(66
)
(85
)
Net cash flows used in investing
activities
(16,714
)
(13,011
)
Cash flows from financing activities:
Revolving credit facility borrowings
35,592
9,725
Revolving credit facility repayments
(35,592
)
(9,725
)
Repayment of 1.50% convertible senior
notes
(17,315
)
(6,272
)
Other debt and finance lease
repayments
(226
)
(359
)
Payment of financing costs
(95
)
(74
)
Purchases of treasury stock
(3,001
)
—
Shares added to treasury stock as a result
of net share settlements
due to vesting of stock awards
(1,948
)
(1,002
)
Net cash flows used in financing
activities
(22,585
)
(7,707
)
Effect of exchange rate changes on cash
and cash equivalents
959
147
Net change in cash and cash
equivalents
402
(30,606
)
Cash and cash equivalents, beginning of
period
42,018
52,852
Cash and cash equivalents, end of
period
$
42,420
$
22,246
Cash paid (received) for:
Interest
$
4,060
$
4,105
Income taxes, net
(1,475
)
291
OIL STATES INTERNATIONAL, INC.
AND SUBSIDIARIES
SEGMENT DATA
(In Thousands)
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
2023
March 31, 2023
June 30,
2022
June 30,
2023
June 30,
2022
Revenues(1):
Offshore/Manufactured Products
Project-driven:
Products
$
32,210
$
39,132
$
41,098
$
71,342
$
74,942
Services
24,846
24,630
23,995
49,476
48,293
57,056
63,762
65,093
120,818
123,235
Military and other products
7,965
6,997
7,763
14,962
13,109
Short-cycle products
29,065
27,440
23,611
56,505
44,235
Total Offshore/Manufactured Products
94,086
98,199
96,467
192,285
180,579
Well Site Services
64,536
67,058
54,819
131,594
102,991
Downhole Technologies
24,907
30,942
30,548
55,849
62,308
Total revenues
$
183,529
$
196,199
$
181,834
$
379,728
$
345,878
Operating income (loss):
Offshore/Manufactured Products
$
11,253
$
11,090
$
9,441
$
22,343
$
19,637
Well Site Services
4,732
6,966
601
11,698
(2,794
)
Downhole Technologies
(2,536
)
(1,519
)
(1,485
)
(4,055
)
(2,990
)
Corporate
(10,180
)
(10,662
)
(9,647
)
(20,842
)
(19,279
)
Total operating income (loss)
$
3,269
$
5,875
$
(1,090
)
$
9,144
$
(5,426
)
________________
(1)
The Company revised its supplemental
disclosure of disaggregated revenue information in the second
quarter of 2023. Prior-period disclosures of disaggregated revenue
information were conformed with the current-period
presentation.
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, 2023
March 31, 2023
June 30, 2022
June 30, 2023
June 30, 2022
Net income (loss)
$
558
$
2,158
$
(5,144
)
$
2,716
$
(14,568
)
Interest expense, net
2,059
2,391
2,638
4,450
5,310
Income tax provision
862
1,602
1,792
2,464
5,233
Depreciation and amortization expense
15,537
15,256
17,239
30,793
35,056
Settlement of disputes with seller of
GEODynamics, Inc.
—
—
620
—
620
Gains on extinguishment of 1.50%
convertible senior notes
—
—
(157
)
—
(157
)
Adjusted EBITDA
$
19,016
$
21,407
$
16,988
$
40,423
$
31,494
________________
(A)
The term Adjusted EBITDA consists of net
income (loss) plus net interest expense, taxes, depreciation and
amortization expense, and loss on settlement of disputes with the
seller of GEODynamics, Inc., less gains on extinguishment of 1.50%
convertible senior notes (the "2023 Notes"). Adjusted EBITDA is not
a measure of financial performance under generally accepted
accounting principles ("GAAP") and should not be considered in
isolation from or as a substitute for net income (loss) or cash
flow measures prepared in accordance with GAAP or as a measure of
profitability or liquidity. Additionally, Adjusted EBITDA may not
be comparable to other similarly titled measures of other
companies. The Company has included Adjusted EBITDA as a
supplemental disclosure because its management believes that
Adjusted 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 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 Adjusted EBITDA to net
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 SEGMENT EBITDA
(B)
(In Thousands)
(Unaudited)
Three Months Ended
Six Months Ended
June 30, 2023
March 31, 2023
June 30, 2022
June 30, 2023
June 30, 2022
Offshore/Manufactured Products:
Operating income
$
11,253
$
11,090
$
9,441
$
22,343
$
19,637
Other income, net
81
165
45
246
86
Depreciation and amortization expense
4,647
4,668
5,249
9,315
10,579
Adjusted Segment EBITDA
$
15,981
$
15,923
$
14,735
$
31,904
$
30,302
Well Site Services:
Operating income (loss)
$
4,732
$
6,966
$
601
$
11,698
$
(2,794
)
Other income, net
129
111
878
240
1,864
Depreciation and amortization expense
6,564
6,146
7,395
12,710
15,327
Adjusted Segment EBITDA
$
11,425
$
13,223
$
8,874
$
24,648
$
14,397
Downhole Technologies:
Operating loss
$
(2,536
)
$
(1,519
)
$
(1,485
)
$
(4,055
)
$
(2,990
)
Other expense, net
—
—
(84
)
—
(86
)
Depreciation and amortization expense
4,175
4,275
4,423
8,450
8,807
Adjusted Segment EBITDA
$
1,639
$
2,756
$
2,854
$
4,395
$
5,731
Corporate:
Operating loss
$
(10,180
)
$
(10,662
)
$
(9,647
)
$
(20,842
)
$
(19,279
)
Other expense, net
—
—
(463
)
—
(463
)
Depreciation and amortization expense
151
167
172
318
343
Settlement of disputes with seller of
GEODynamics, Inc.
—
—
620
—
620
Gains on extinguishment of 1.50%
convertible senior notes
—
—
(157
)
—
(157
)
Adjusted Segment EBITDA
$
(10,029
)
$
(10,495
)
$
(9,475
)
$
(20,524
)
$
(18,936
)
________________
(B)
The term Adjusted Segment EBITDA consists
of operating income (loss) plus other income (expense),
depreciation and amortization expense, and loss on settlement of
disputes with the seller of GEODynamics, Inc., less gains on
extinguishment of the 2023 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20230727426999/en/
Company Contact: Lloyd A. Hajdik Oil States International, Inc.
Executive Vice President, Chief Financial Officer and Treasurer
(713) 652-0582
Oil States (NYSE:OIS)
過去 株価チャート
から 4 2024 まで 5 2024
Oil States (NYSE:OIS)
過去 株価チャート
から 5 2023 まで 5 2024