Oceaneering Announces Realigned Reporting Segments
- Reorganized business units leverage common attributes to drive increased value
HOUSTON, Sept. 24, 2020 /PRNewswire/ -- Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today announced that, beginning with results for the quarter ending September 30, 2020, it will be reporting financial results consistent with its newly realigned operating segments. This realignment reflects how Oceaneering now manages its businesses and supports its ongoing efforts to achieve greater cost efficiencies.
Rod Larson, President and Chief Executive Officer of Oceaneering, stated, "An integral part of our cost-savings effort has focused on exploiting synergies within our businesses. As a result of this effort, we have reorganized our business units into segments that better leverage common attributes, which we believe will drive increased value for our customers and our shareholders. The new structure organizes the company's business units around five operating segments, as follows:
- Subsea Robotics - Our Subsea Robotics ("SSR") segment consists of our prior Remotely Operated Vehicles ("ROV") segment, and ROV tooling (previously in our Subsea Products segment) and survey services (previously in our Subsea Projects segment). Senior Vice President, Martin J. McDonald is leading this segment.
- Manufactured Products - Our Manufactured Products ("MP") segment consists of our manufactured products business (previously in our Subsea Products segment), and theme park entertainment systems and automated guided vehicles ("AGV") (previously in our Advanced Technologies segment). The alignment of entertainment systems and AGV with our manufactured products business allows us to leverage our manufacturing and project management expertise in these commercial businesses. Senior Vice President, Shaun R. Roedel is leading this segment.
- Offshore Projects Group - Our Offshore Projects Group ("OPG") segment consists of our prior Subsea Projects segment, less survey services and global data solutions, and our service and rental business, less ROV tooling (previously in our Subsea Products segment). This combination brings together business units that frequently work together and promotes increased efficiency in bidding, project management, and the use of offshore technicians. Senior Vice President, Benjamin M. Laura is leading this segment.
- Integrity Management & Digital Solutions - Our Integrity Management & Digital Solutions ("IMDS") segment consists of our prior Asset Integrity segment and our global data solutions business ("GDS") (previously in our Subsea Projects segment). The inclusion of GDS in this segment facilitates optimized digital and software solutions to our integrity management services. Senior Vice President, Kishore Sundararajan is leading this segment.
- Aerospace and Defense Technologies - Our Aerospace and Defense Technologies ("ADTech") segment consists of our government business (previously in our Advanced Technologies segment), focused on defense subsea technologies, marine services, and space systems. Senior Vice President, Philip G. Beierl is leading this segment.
"We are confident that this realignment will promote increased efficiencies and contribute meaningfully to our previously announced cost-reduction objectives."
A table depicting Oceaneering's realigned reporting segments follows. The impact on Oceaneering's 2020 first half reported financial results is detailed in the attached tables as well.
Statements in this press release that express a belief, expectation or intention, as well as those that are not historical fact, are forward-looking. The forward-looking statements in this press release include the statements concerning Oceaneering's beliefs that its realigned business segments will: drive increased value; leverage expertise; and promote increased efficiencies and cost-reduction objectives. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are based on current information and expectations of Oceaneering that involve a number of risks, uncertainties, and assumptions affecting Oceaneering's business, including risks typically attendant to changes in management and reporting structures. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the forward-looking statements prove incorrect, actual outcomes could vary materially from those indicated. These and other risks are more fully described in Oceaneering's latest annual report on Form 10-K and its other periodic filings with the Securities and Exchange Commission.
Oceaneering is a global provider of engineered services and products, primarily to the offshore energy industry. Through the use of its applied technology expertise, Oceaneering also serves the defense, entertainment, and aerospace industries.
For more information on Oceaneering, please visit www.oceaneering.com.
Contact:
Mark Peterson
Vice President, Corporate Development and Investor Relations
Oceaneering International, Inc.
713-329-4507
[email protected]
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OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES | |||||
NEW SEGMENTS | |||||
Subsea | Manufactured | Offshore | Integrity | Aerospace and | |
ROV | Distribution Systems AGV Solutions | Vessels Service & Rental (well intervention, Installation Workover Control Systems (IWOCS), large work packages) | Non-destructive Testing (NDT) Integrity Management Digital Solutions: Maritime Shipping and GDS | Defense Subsea Technologies Marine Services Space Systems | |
Business remains in renamed segment | |||||
SEGMENT INFORMATION (RECAST) | ||||||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||
Jun 30, 2020 | Jun 30, 2019 | Mar 31, 2020 | Jun 30, 2020 | Jun 30, 2019 | ||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||
Subsea Robotics | ||||||||||||||||||||||||
Revenue | $ | 119,234 | $ | 152,450 | $ | 139,770 | $ | 259,004 | $ | 281,056 | ||||||||||||||
Gross margin | $ | 21,324 | $ | 25,458 | $ | 19,473 | $ | 40,797 | $ | 39,046 | ||||||||||||||
Operating income (loss) | $ | 11,662 | $ | 14,714 | $ | (94,083) | $ | (82,421) | $ | 17,820 | ||||||||||||||
Operating income (loss) % | 10 | % | 10 | % | (67) | % | (32) | % | 6 | % | ||||||||||||||
ROV Days available | 22,750 | 25,006 | 22,750 | 45,500 | 49,512 | |||||||||||||||||||
ROV Days utilized | 13,501 | 15,423 | 14,853 | 28,354 | 28,365 | |||||||||||||||||||
ROV Utilization | 59 | % | 62 | % | 65 | % | 62 | % | 57 | % | ||||||||||||||
Manufactured Products | ||||||||||||||||||||||||
Revenue | $ | 100,570 | $ | 116,964 | $ | 166,534 | $ | 267,104 | $ | 220,001 | ||||||||||||||
Gross margin | $ | 13,679 | $ | 13,693 | $ | 17,949 | $ | 31,628 | $ | 22,931 | ||||||||||||||
Operating income (loss) | $ | 3,865 | $ | 3,542 | $ | (66,138) | $ | (62,273) | $ | 3,228 | ||||||||||||||
Operating income (loss) % | 4 | % | 3 | % | (40) | % | (23) | % | 1 | % | ||||||||||||||
Backlog at end of period | $ | 380,000 | $ | 570,000 | $ | 427,000 | $ | 380,000 | $ | 570,000 | ||||||||||||||
Offshore Projects Group | ||||||||||||||||||||||||
Revenue | $ | 73,840 | $ | 84,585 | $ | 74,254 | $ | 148,094 | $ | 200,078 | ||||||||||||||
Gross margin | $ | 3,170 | $ | 2,853 | $ | 2,095 | $ | 5,265 | $ | 11,826 | ||||||||||||||
Operating income (loss) | $ | (4,135) | $ | (5,027) | $ | (79,323) | $ | (83,458) | $ | (2,758) | ||||||||||||||
Operating income (loss) % | (6) | % | (6) | % | (107) | % | (56) | % | (1) | % | ||||||||||||||
Integrity Management & Digital Solutions | ||||||||||||||||||||||||
Revenue | $ | 53,969 | $ | 66,857 | $ | 64,729 | $ | 118,698 | $ | 132,725 | ||||||||||||||
Gross margin | $ | 5,455 | $ | 7,773 | $ | 9,792 | $ | 15,247 | $ | 14,882 | ||||||||||||||
Operating income (loss) | $ | (1,825) | $ | (464) | $ | (121,535) | $ | (123,360) | $ | (1,948) | ||||||||||||||
Operating income (loss) % | (3) | % | (1) | % | (188) | % | (104) | % | (1) | % | ||||||||||||||
Aerospace and Defense Technologies | ||||||||||||||||||||||||
Revenue | $ | 79,603 | $ | 74,925 | $ | 91,381 | $ | 170,984 | $ | 155,807 | ||||||||||||||
Gross margin | $ | 17,313 | $ | 13,893 | $ | 17,485 | $ | 34,798 | $ | 27,274 | ||||||||||||||
Operating income (loss) | $ | 13,430 | $ | 9,362 | $ | 12,971 | $ | 26,401 | $ | 18,505 | ||||||||||||||
Operating income (loss) % | 17 | % | 12 | % | 14 | % | 15 | % | 12 | % | ||||||||||||||
Unallocated Expenses | ||||||||||||||||||||||||
Gross margin | $ | (18,404) | $ | (21,687) | $ | (20,042) | $ | (38,446) | $ | (46,389) | ||||||||||||||
Operating income (loss) | $ | (28,179) | $ | (31,762) | $ | (32,649) | $ | (60,828) | $ | (66,196) | ||||||||||||||
Total | ||||||||||||||||||||||||
Revenue | $ | 427,216 | $ | 495,781 | $ | 536,668 | $ | 963,884 | $ | 989,667 | ||||||||||||||
Gross margin | $ | 42,537 | $ | 41,983 | $ | 46,752 | $ | 89,289 | $ | 69,570 | ||||||||||||||
Operating income (loss) | $ | (5,182) | $ | (9,635) | $ | (380,757) | $ | (385,939) | $ | (31,349) | ||||||||||||||
Operating income (loss) % | (1) | % | (2) | % | (71) | % | (40) | % | (3) | % | ||||||||||||||
The above Segment Information does not include adjustments for non-recurring transactions. See the tables in our Reconciliations of Non-GAAP to GAAP Financial Information section for financial measures that management considers representative of our ongoing operations. | ||||||||||||||||||||||||
SELECTED CASH FLOW INFORMATION (RECAST) | ||||||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||
Jun 30, 2020 | Jun 30, 2019 | Mar 31, 2020 | Jun 30, 2020 | Jun 30, 2019 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Capital Expenditures, including Acquisitions | $ | 10,631 | $ | 40,898 | $ | 27,229 | $ | 37,860 | $ | 70,862 | ||||||||||||||
Depreciation and amortization: | ||||||||||||||||||||||||
Energy Services and Products | ||||||||||||||||||||||||
Subsea Robotics | $ | 25,080 | $ | 31,640 | $ | 139,187 | $ | 164,267 | $ | 64,827 | ||||||||||||||
Manufactured Products | 3,587 | 4,987 | 15,964 | 19,551 | 10,033 | |||||||||||||||||||
Offshore Projects Group | 8,255 | 9,826 | 74,907 | 83,162 | 20,148 | |||||||||||||||||||
Integrity Management & Digital Solutions | 757 | 2,025 | 124,343 | 125,100 | 4,083 | |||||||||||||||||||
Total Energy Services and Products | 37,679 | 48,478 | 354,401 | 392,080 | 99,091 | |||||||||||||||||||
Aerospace and Defense Technologies | 658 | 644 | 687 | 1,345 | 1,358 | |||||||||||||||||||
Unallocated Expenses | 361 | 1,182 | 1,108 | 1,469 | 2,341 | |||||||||||||||||||
Total Depreciation and Amortization | $ | 38,698 | $ | 50,304 | $ | 356,196 | $ | 394,894 | $ | 102,790 | ||||||||||||||
Goodwill and long-lived asset impairment expense, reflected in the depreciation and amortization expense above, was $310 million in the three months ended March 31, 2020 and the six months ended June 30, 2020. | ||||||||||||||||||||||||
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
In addition to financial results determined in accordance with U.S. generally accepted accounting principles ("GAAP"), this Press Release also includes non-GAAP financial measures (as defined under SEC Regulation G). We believe these are useful measures for investors to review because they provide consistent measures of the underlying results of our ongoing business. Furthermore, our management uses these measures as measures of the performance of our operations. We have included disclosures by segment of Adjusted Operating Income and Margins, Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), EBITDA Margins, Adjusted EBITDA and Adjusted EBITDA Margins. We define EBITDA Margin as EBITDA divided by revenue. Adjusted EBITDA and Adjusted EBITDA Margins as well as Adjusted Operating Income and Margin and related information by segment exclude the effects of certain specified items, as set forth in the tables that follow. EBITDA and EBITDA Margins, Adjusted EBITDA and Adjusted EBITDA Margins, and Adjusted Operating Income and Margin and related information by segment are each non-GAAP financial measures. We have included these disclosures in this press release because EBITDA and EBITDA Margins are widely used by investors for valuation and comparing our financial performance with the performance of other companies in our industry, and the adjusted amounts thereof (as well as Adjusted Operating Income and Margin by Segment) provide more consistent measures than the unadjusted amounts. Furthermore, our management uses these measures for purposes of evaluating our financial performance. Our presentation of EBITDA and EBITDA Margins (and the Adjusted amounts thereof) may not be comparable to similarly titled measures other companies report. Non-GAAP financial measures should be viewed in addition to and not as substitutes for our reported operating results, cash flows or any other measure prepared and reported in accordance with GAAP. The tables that follow provide reconciliations of the non-GAAP measures used in this press release to the most directly comparable GAAP measures.
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
Adjusted Operating Income (Loss) and Margins by Segment (Recast) | ||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||
Subsea | Manufactured Products | Offshore | Integrity Management | Aerospace | Unallocated Expenses | Total | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||
Operating Income (Loss) as reported in accordance with GAAP | $ | 11,662 | $ | 3,865 | $ | (4,135) | $ | (1,825) | $ | 13,430 | $ | (28,179) | $ | (5,182) | ||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Restructuring expenses and other | 1,380 | 1,212 | 1,405 | 1,536 | — | 175 | 5,708 | |||||||||||||||||||||||
Total of adjustments | 1,380 | 1,212 | 1,405 | 1,536 | — | 175 | 5,708 | |||||||||||||||||||||||
Adjusted Operating Income (Loss) | $ | 13,042 | $ | 5,077 | $ | (2,730) | $ | (289) | $ | 13,430 | $ | (28,004) | $ | 526 | ||||||||||||||||
Revenue | $ | 119,234 | $ | 100,570 | $ | 73,840 | $ | 53,969 | $ | 79,603 | $ | 427,216 | ||||||||||||||||||
Operating income (loss) % as reported in accordance with GAAP | 10 | % | 4 | % | (6) | % | (3) | % | 17 | % | (1) | % | ||||||||||||||||||
Operating income (loss)% using adjusted amounts | 11 | % | 5 | % | (4) | % | (1) | % | 17 | % | — | % | ||||||||||||||||||
For the Three Months Ended June 30, 2019 | ||||||||||||||||||||||||||||||
Subsea | Manufactured Products | Offshore | Integrity Management | Aerospace | Unallocated Expenses | Total | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||
Operating Income (Loss) as reported in accordance with GAAP | $ | 14,714 | $ | 3,542 | $ | (5,027) | $ | (464) | $ | 9,362 | $ | (31,762) | $ | (9,635) | ||||||||||||||||
Adjusted Operating Income (Loss) | $ | 14,714 | $ | 3,542 | $ | (5,027) | $ | (464) | $ | 9,362 | $ | (31,762) | $ | (9,635) | ||||||||||||||||
Revenue | $ | 152,450 | $ | 116,964 | $ | 84,585 | $ | 66,857 | $ | 74,925 | $ | 495,781 | ||||||||||||||||||
Operating income (loss) % as reported in accordance with GAAP | 10 | % | 3 | % | (6) | % | (1) | % | 12 | % | (2) | % | ||||||||||||||||||
Operating income (loss)% using adjusted amounts | 10 | % | 3 | % | (6) | % | (1) | % | 12 | % | (2) | % | ||||||||||||||||||
For the Three Months Ended March 31, 2020 | ||||||||||||||||||||||||||||||
Subsea | Manufactured Products | Offshore | Integrity Management | Aerospace | Unallocated Expenses | Total | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||
Operating Income (Loss) as reported in accordance with GAAP | $ | (94,083) | $ | (66,138) | $ | (79,323) | $ | (121,535) | $ | 12,971 | $ | (32,649) | $ | (380,757) | ||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Long-lived assets impairments | — | 61,074 | 7,522 | 167 | — | — | 68,763 | |||||||||||||||||||||||
Long-lived assets write-offs | 7,328 | — | — | — | — | — | 7,328 | |||||||||||||||||||||||
Goodwill impairment | 102,118 | 11,388 | 66,285 | 123,214 | — | — | 303,005 | |||||||||||||||||||||||
Restructuring expenses and other | 919 | 1,984 | 1,216 | 2,231 | — | 280 | 6,630 | |||||||||||||||||||||||
Total of adjustments | 110,365 | 74,446 | 75,023 | 125,612 | — | 280 | 385,726 | |||||||||||||||||||||||
Adjusted Operating Income (Loss) | $ | 16,282 | $ | 8,308 | $ | (4,300) | $ | 4,077 | $ | 12,971 | $ | (32,369) | $ | 4,969 | ||||||||||||||||
Revenue | $ | 139,770 | $ | 166,534 | $ | 74,254 | $ | 64,729 | $ | 91,381 | $ | 536,668 | ||||||||||||||||||
Operating income (loss) % as reported in accordance with GAAP | (67) | % | (40) | % | (107) | % | (188) | % | 14 | % | (71) | % | ||||||||||||||||||
Operating income (loss) % using adjusted amounts | 12 | % | 5 | % | (6) | % | 6 | % | 14 | % | 1 | % | ||||||||||||||||||
Adjusted Operating Income (Loss) and Margins by Segment (Recast) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsea | Manufactured Products | Offshore | Integrity | Aerospace | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Income (Loss) as reported in accordance with GAAP | $ | (82,421) | $ | (62,273) | $ | (83,458) | $ | (123,360) | $ | 26,401 | $ | (60,828) | $ | (385,939) | ||||||||||||||||||||||||||||||||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-lived assets impairments | — | 61,074 | 7,522 | 167 | — | — | 68,763 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-lived assets write-offs | 7,328 | — | — | — | — | — | 7,328 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill impairment | 102,118 | 11,388 | 66,285 | 123,214 | — | — | 303,005 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring expenses and other | 2,299 | 3,196 | 2,621 | 3,767 | — | 455 | 12,338 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total of adjustments | 111,745 | 75,658 | 76,428 | 127,148 | — | 455 | 391,434 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted Operating Income (Loss) | $ | 29,324 | $ | 13,385 | $ | (7,030) | $ | 3,788 | $ | 26,401 | $ | (60,373) | $ | 5,495 | ||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 259,004 | $ | 267,104 | $ | 148,094 | $ | 118,698 | $ | 170,984 | $ | 963,884 | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) % as reported in accordance with GAAP | (32) | % | (23) | % | (56) | % | (104) | % | 15 | % | (40) | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss)% using adjusted amounts | 11 | % | 5 | % | (5) | % | 3 | % | 15 | % | 1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsea | Manufactured Products | Offshore | Integrity | Aerospace | Unallocated | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Income (Loss) as reported in accordance with GAAP | $ | 17,820 | $ | 3,228 | $ | (2,758) | $ | (1,948) | $ | 18,505 | $ | (66,196) | $ | (31,349) | ||||||||||||||||||||||||||||||||||||||||||||||
Adjusted Operating Income (Loss) | $ | 17,820 | $ | 3,228 | $ | (2,758) | $ | (1,948) | $ | 18,505 | $ | (66,196) | $ | (31,349) | ||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 281,056 | $ | 220,001 | $ | 200,078 | $ | 132,725 | $ | 155,807 | $ | 989,667 | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) % as reported in accordance with GAAP | 6 | % | 1 | % | (1) | % | (1) | % | 12 | % | (3) | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating income (loss)% using adjusted amounts | 6 | % | 1 | % | (1) | % | (1) | % | 12 | % | (3) | % | ||||||||||||||||||||||||||||||||||||||||||||||||
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION | ||||||||||||||||||||||||||||||
EBITDA and Adjusted EBITDA and Margins by Segment (Recast) | ||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||
Subsea | Manufactured Products | Offshore | Integrity Management | Aerospace | Unallocated Expenses | Total | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||
Operating Income (Loss) as reported in accordance with GAAP | $ | 11,662 | $ | 3,865 | $ | (4,135) | $ | (1,825) | $ | 13,430 | $ | (28,179) | $ | (5,182) | ||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Depreciation and amortization | 25,080 | 3,587 | 8,255 | 757 | 658 | 361 | 38,698 | |||||||||||||||||||||||
Other pre-tax | — | — | — | — | — | (2,653) | (2,653) | |||||||||||||||||||||||
EBITDA | 36,742 | 7,452 | 4,120 | (1,068) | 14,088 | (30,471) | 30,863 | |||||||||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Restructuring expenses and other | 1,380 | 1,212 | 1,405 | 1,536 | — | 175 | 5,708 | |||||||||||||||||||||||
Foreign currency (gains) losses | — | — | — | — | — | 3,908 | 3,908 | |||||||||||||||||||||||
Total of adjustments | 1,380 | 1,212 | 1,405 | 1,536 | — | 4,083 | 9,616 | |||||||||||||||||||||||
Adjusted EBITDA | $ | 38,122 | $ | 8,664 | $ | 5,525 | $ | 468 | $ | 14,088 | $ | (26,388) | $ | 40,479 | ||||||||||||||||
Revenue | $ | 119,234 | $ | 100,570 | $ | 73,840 | $ | 53,969 | $ | 79,603 | $ | 427,216 | ||||||||||||||||||
Operating income (loss) % as reported in accordance with GAAP | 10 | % | 4 | % | (6) | % | (3) | % | 17 | % | (1) | % | ||||||||||||||||||
EBITDA Margin | 31 | % | 7 | % | 6 | % | (2) | % | 18 | % | 7 | % | ||||||||||||||||||
Adjusted EBITDA Margin | 32 | % | 9 | % | 7 | % | 1 | % | 18 | % | 9 | % | ||||||||||||||||||
For the Three Months Ended June 30, 2019 | ||||||||||||||||||||||||||||||
Subsea | Manufactured Products | Offshore | Integrity Management | Aerospace | Unallocated Expenses | Total | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||
Operating Income (Loss) as reported in accordance with GAAP | $ | 14,714 | $ | 3,542 | $ | (5,027) | $ | (464) | $ | 9,362 | $ | (31,762) | $ | (9,635) | ||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Depreciation and amortization | 31,640 | 4,987 | 9,826 | 2,025 | 644 | 1,182 | 50,304 | |||||||||||||||||||||||
Other pre-tax | — | — | — | — | — | (328) | (328) | |||||||||||||||||||||||
EBITDA | 46,354 | 8,529 | 4,799 | 1,561 | 10,006 | (30,908) | 40,341 | |||||||||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Foreign currency (gains) losses | — | — | — | — | — | (59) | (59) | |||||||||||||||||||||||
Total of adjustments | — | — | — | — | — | (59) | (59) | |||||||||||||||||||||||
Adjusted EBITDA | $ | 46,354 | $ | 8,529 | $ | 4,799 | $ | 1,561 | $ | 10,006 | $ | (30,967) | $ | 40,282 | ||||||||||||||||
Revenue | $ | 152,450 | $ | 116,964 | $ | 84,585 | $ | 66,857 | $ | 74,925 | $ | 495,781 | ||||||||||||||||||
Operating income (loss) % as reported in accordance with GAAP | 10 | % | 3 | % | (6) | % | (1) | % | 12 | % | (2) | % | ||||||||||||||||||
EBITDA Margin | 30 | % | 7 | % | 6 | % | 2 | % | 13 | % | 8 | % | ||||||||||||||||||
Adjusted EBITDA Margin | 30 | % | 7 | % | 6 | % | 2 | % | 13 | % | 8 | % | ||||||||||||||||||
For the Three Months Ended March 31, 2020 | ||||||||||||||||||||||||||||||
Subsea | Manufactured Products | Offshore | Integrity Management | Aerospace | Unallocated Expenses | Total | ||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||
Operating Income (Loss) as reported in accordance with GAAP | $ | (94,083) | $ | (66,138) | $ | (79,323) | $ | (121,535) | $ | 12,971 | $ | (32,649) | $ | (380,757) | ||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Depreciation and amortization | 139,187 | 15,964 | 74,907 | 124,343 | 687 | 1,108 | 356,196 | |||||||||||||||||||||||
Other pre-tax | — | — | — | — | — | (6,264) | (6,264) | |||||||||||||||||||||||
EBITDA | 45,104 | (50,174) | (4,416) | 2,808 | 13,658 | (37,805) | (30,825) | |||||||||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||
Long-lived assets impairments | — | 61,074 | 7,522 | 167 | — | — | 68,763 | |||||||||||||||||||||||
Restructuring expenses and other | 919 | 1,984 | 1,216 | 2,231 | — | 280 | 6,630 | |||||||||||||||||||||||
Foreign currency (gains) losses | — | — | — | — | — | 7,050 | 7,050 | |||||||||||||||||||||||
Total of adjustments | 919 | 63,058 | 8,738 | 2,398 | — | 7,330 | 82,443 | |||||||||||||||||||||||
Adjusted EBITDA | $ | 46,023 | $ | 12,884 | $ | 4,322 | $ | 5,206 | $ | 13,658 | $ | (30,475) | $ | 51,618 | ||||||||||||||||
Revenue | $ | 139,770 | $ | 166,534 | $ | 74,254 | $ | 64,729 | $ | 91,381 | $ | 536,668 | ||||||||||||||||||
Operating income (loss) % as reported in accordance with GAAP | (67) | % | (40) | % | (107) | % | (188) | % | 14 | % | (71) | % | ||||||||||||||||||
EBITDA Margin | 32 | % | (30) | % | (6) | % | 4 | % | 15 | % | (6) | % | ||||||||||||||||||
Adjusted EBITDA Margin | 33 | % | 8 | % | 6 | % | 8 | % | 15 | % | 10 | % | ||||||||||||||||||
EBITDA and Adjusted EBITDA and Margins by Segment (Recast) | ||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||||||||||
Subsea | Manufactured | Offshore | Integrity Management | Aerospace | Unallocated Expenses | Total | ||||||||||||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||||||||||||
Operating Income (Loss) as reported in accordance with GAAP | $ | (82,421) | $ | (62,273) | $ | (83,458) | $ | (123,360) | $ | 26,401 | $ | (60,828) | $ | (385,939) | ||||||||||||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 164,267 | 19,551 | 83,162 | 125,100 | 1,345 | 1,469 | 394,894 | |||||||||||||||||||||||||||||||||
Other pre-tax | — | — | — | — | — | (8,917) | (8,917) | |||||||||||||||||||||||||||||||||
EBITDA | 81,846 | (42,722) | (296) | 1,740 | 27,746 | (68,276) | 38 | |||||||||||||||||||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||||||||||||
Long-lived assets impairments | — | 61,074 | 7,522 | 167 | — | — | 68,763 | |||||||||||||||||||||||||||||||||
Restructuring expenses and other | 2,299 | 3,196 | 2,621 | 3,767 | — | 455 | 12,338 | |||||||||||||||||||||||||||||||||
Foreign currency (gains) losses | — | — | — | — | — | 10,958 | 10,958 | |||||||||||||||||||||||||||||||||
Total of adjustments | 2,299 | 64,270 | 10,143 | 3,934 | — | 11,413 | 92,059 | |||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 84,145 | $ | 21,548 | $ | 9,847 | $ | 5,674 | $ | 27,746 | $ | (56,863) | $ | 92,097 | ||||||||||||||||||||||||||
Revenue | $ | 259,004 | $ | 267,104 | $ | 148,094 | $ | 118,698 | $ | 170,984 | $ | 963,884 | ||||||||||||||||||||||||||||
Operating income (loss) % as reported in accordance with GAAP | (32) | % | (23) | % | (56) | % | (104) | % | 15 | % | (40) | % | ||||||||||||||||||||||||||||
EBITDA Margin | 32 | % | (16) | % | — | % | 1 | % | 16 | % | — | % | ||||||||||||||||||||||||||||
Adjusted EBITDA Margin | 32 | % | 8 | % | 7 | % | 5 | % | 16 | % | 10 | % | ||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||
Subsea | Manufactured | Offshore | Integrity Management | Aerospace | Unallocated Expenses | Total | ||||||||||||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||||||||||||
Operating Income (Loss) as reported in accordance with GAAP | $ | 17,820 | $ | 3,228 | $ | (2,758) | $ | (1,948) | $ | 18,505 | $ | (66,196) | $ | (31,349) | ||||||||||||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 64,827 | 10,033 | 20,148 | 4,083 | 1,358 | 2,341 | 102,790 | |||||||||||||||||||||||||||||||||
Other pre-tax | — | — | — | — | — | (113) | (113) | |||||||||||||||||||||||||||||||||
EBITDA | 82,647 | 13,261 | 17,390 | 2,135 | 19,863 | (63,968) | 71,328 | |||||||||||||||||||||||||||||||||
Adjustments for the effects of: | ||||||||||||||||||||||||||||||||||||||||
Foreign currency (gains) losses | — | — | — | — | — | (673) | (673) | |||||||||||||||||||||||||||||||||
Total of adjustments | — | — | — | — | — | (673) | (673) | |||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 82,647 | $ | 13,261 | $ | 17,390 | $ | 2,135 | $ | 19,863 | $ | (64,641) | $ | 70,655 | ||||||||||||||||||||||||||
Revenue | $ | 281,056 | $ | 220,001 | $ | 200,078 | $ | 132,725 | $ | 155,807 | $ | 989,667 | ||||||||||||||||||||||||||||
Operating income (loss) % as reported in accordance with GAAP | 6 | % | 1 | % | (1) | % | (1) | % | 12 | % | (3) | % | ||||||||||||||||||||||||||||
EBITDA Margin | 29 | % | 6 | % | 9 | % | 2 | % | 13 | % | 7 | % | ||||||||||||||||||||||||||||
Adjusted EBITDA Margin | 29 | % | 6 | % | 9 | % | 2 | % | 13 | % | 7 | % | ||||||||||||||||||||||||||||
SOURCE Oceaneering International, Inc.
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