Third Quarter Highlights include:
- Reported revenues of $176.3 million, net loss of $5.1 million
and operating cash flow of $35.7 million;
- Delivered Adjusted EBITDA of $18.8 million and free cash flow
of $28.3 million;
- Returned $17.8 million of capital to shareholders in the
quarter through the quarterly dividend and share repurchases;
- Australian segment continues to deliver strong growth, with
revenues up 33% on a year-over-year basis, driven by both increased
occupancy at Civeo-owned villages and continued growth in our
integrated services offering; and
- Today announced a 33-month contract renewal with a major
Canadian oil sands producer to continue providing accommodations
and hospitality services through June 2027 with expected revenues
totaling approximately C$150 million.
Civeo Corporation (NYSE:CVEO) today reported financial and
operating results for the third quarter ended September 30,
2024.
“Our Australian segment continues to perform well generating
solid growth driven by increased billed rooms at our Civeo-owned
villages and new business with an existing integrated services
customer. As expected, the Canadian segment declined year-over-year
with the ongoing wind-down of Canadian LNG-related activity. This
decline was exacerbated by wildfire-related evacuations and delays
as well as the effect of the previously discussed pull-forward of
customer turnaround and operational activities. We are encouraged
by the multi-year contract renewal with a major Canadian oil sands
producer and believe this is a testament to our solid operational
execution and our strong customer relationships,” said Bradley J.
Dodson, Civeo's President and Chief Executive Officer.
Mr. Dodson added, “In the third quarter, we continued to take
advantage of the attractive valuation of our shares, and we
elevated our repurchases to approximately 515,000 common shares for
$14.2 million. We remain well positioned to invest in our growth
initiatives while maintaining attractive cash flow generation to
facilitate the continued return of capital to shareholders via
steady dividends and opportunistic share repurchases.”
Third Quarter 2024 Results
In the third quarter of 2024, Civeo generated revenues of $176.3
million and reported a net loss of $5.1 million, or $0.36 per
diluted share. During the third quarter of 2024, Civeo produced
operating cash flow of $35.7 million, Adjusted EBITDA of $18.8
million and free cash flow of $28.3 million.
By comparison, in the third quarter of 2023, Civeo generated
revenues of $183.6 million and reported net income of $9.0 million,
or $0.61 per diluted share. During the third quarter of 2023, Civeo
produced operating cash flow of $36.8 million, Adjusted EBITDA of
$34.2 million and free cash flow of $31.7 million.
The year-over-year decrease in Adjusted EBITDA in the third
quarter of 2024 was primarily driven by the expected wind-down of
Canadian LNG-related activity, lower Canadian oil sands turnaround
activity due to customers starting their maintenance projects
earlier in the year and lower Canadian occupancy related to the
recent wildfires. This decrease was partially offset by increased
billed rooms at the Australian owned-villages and increased
Australian integrated services revenues related to new business
with existing clients.
Business Segment Results
(Unless otherwise noted, the following discussion compares the
quarterly results for the third quarter of 2024 to the results for
the third quarter of 2023.)
Canada
During the third quarter of 2024, the Canadian segment generated
revenues of $57.7 million, operating loss of $8.3 million and
Adjusted EBITDA of $3.4 million, compared to revenues of $95.1
million, operating income of $10.8 million and Adjusted EBITDA of
$23.2 million in the third quarter of 2023.
The Canadian segment experienced a 39% period-over-period
decrease in revenues and an 85% decrease in Adjusted EBITDA driven
by the anticipated wind-down of LNG-related activity, including
$0.4 million of mobile camp demobilization costs, lower oil sands
turnaround activity due to customers starting their projects
earlier in the year and lower billed rooms as a result of the
Canadian wildfires. The company does not anticipate a material
impact from the wildfires in the fourth quarter.
Today, the Company announced the execution of an expected
contract renewal with a major oil sands producer to continue
providing accommodations and hospitality services through June 2027
with expected revenues totaling approximately C$150 million over 33
months.
Australia
During the third quarter of 2024, the Australian segment
generated revenues of $116.6 million, operating income of $12.3
million and Adjusted EBITDA of $22.5 million, compared to revenues
of $87.9 million, operating income of $9.1 million and Adjusted
EBITDA of $18.9 million in the third quarter of 2023.
Revenue from the Australian segment increased 33%
period-over-period and Adjusted EBITDA was up 19% primarily driven
by a significant increase in integrated services activity from
existing clients and a 4% year-over-year increase to billed rooms,
building on a history of substantial multi-year growth.
Financial Condition and Capital
Allocation
As of September 30, 2024, Civeo had total liquidity of
approximately $211.8 million. Civeo's net debt on September 30,
2024 was $32.2 million, a $7.9 million decrease since June 30,
2024. Civeo reported a net leverage ratio of 0.3x as of September
30, 2024.
During the third quarter of 2024, Civeo invested $7.5 million in
capital expenditures compared to $9.5 million invested during the
third quarter of 2023. Capital expenditures in both periods were
primarily related to maintenance spending on the Company’s lodges
and villages. Capital expenditures in the third quarter of 2023
also included $3.6 million related to customer-funded
infrastructure upgrades at three Australian villages which were
reimbursed by our client.
The Company announced today that its board of directors has
declared a quarterly cash dividend of $0.25 per common share,
payable on December 16, 2024 to shareholders of record as of close
of business on November 25, 2024. For purposes of the Income Tax
Act (Canada), the Company has designated this dividend to be an
"eligible dividend."
In the third quarter of 2024, Civeo repurchased approximately
515,000 shares for approximately $14.2 million. On September 11,
the Board announced it renewed its share repurchase authorization
for the Company to repurchase up to 5% of its total common shares
outstanding over the next twelve months. The Company will continue
to be opportunistic about pursuing repurchases. The Board may
increase the number of common shares that may be repurchased under
the repurchase plan at any time. The repurchase plan does not
obligate Civeo to repurchase any particular number of shares, and
it may be suspended or terminated at any time.
Full Year 2024 Guidance
For the full year of 2024, Civeo is tightening its previously
provided revenue and Adjusted EBITDA guidance ranges to $675
million to $700 million and $83 million to $88 million,
respectively. The Company is maintaining its full year 2024 capital
expenditure guidance range of $30 million to $35 million.
Conference Call
Civeo will host a conference call to discuss its third quarter
2024 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 (877) 423-9813 in the United States or (201) 689-8573
internationally and asking for the Civeo call or using the
conference ID 13749748#. 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 13749748#.
About Civeo
Civeo Corporation is a leading provider of hospitality services
with prominent market positions in the Canadian oil sands and the
Australian natural resource regions. Civeo offers comprehensive
solutions for lodging hundreds or thousands of workers with its
long-term and temporary accommodations and provides food services,
housekeeping, facility management, laundry, water and wastewater
treatment, power generation, communications systems, security and
logistics services. Civeo currently owns and operates a total of 24
lodges and villages in North America and Australia with an
aggregate of approximately 26,000 rooms. In addition, Civeo
operates and provides hospitality services at 22 customer-owned
locations with more than 18,000 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 herein, including the statements regarding Civeo’s
future plans and outlook, strategic priorities, guidance, current
trends, expectations with respect to future revenues, share
repurchases and dividends, and liquidity needs, 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,
iron ore and other minerals, including the level of activity,
spending and developments in the Canadian oil sands, the level of
demand for coal and other natural resources from, and investments
and opportunities in, Australia, and fluctuations or sharp declines
in the current and future prices of oil, natural gas, coal, iron
ore and other minerals, risks associated with failure by our
customers to reach positive final investment decisions on, or
otherwise not complete, projects with respect to which we have been
awarded contracts, which may cause those customers to terminate or
postpone contracts, risks associated with currency exchange rates,
risks associated with inflation and volatility in the banking
sector, risks associated with the company’s ability to integrate
any future acquisitions, risks associated with labor shortages,
risks associated with the development of new projects, including
whether such projects will continue in the future, risks associated
with the trading price of the company’s common shares, availability
and cost of capital, risks associated with general global economic
conditions, geopolitical events, inflation, global weather
conditions, natural disasters, including wildfires, global health
concerns, and security threats and changes to government and
environmental regulations, including climate change, 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 most recent annual report on Form 10-K and
other reports the company may file from time to time with the U.S.
Securities and Exchange Commission. Each forward-looking statement
contained herein 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.
Non-GAAP Financial Information
EBITDA, Adjusted EBITDA, free cash flow, net debt, bank-adjusted
EBITDA and net leverage ratio are non-GAAP financial measures. See
“Non-GAAP Reconciliation” below for definitions and additional
information concerning non-GAAP financial measures, including a
reconciliation of the non-GAAP financial information presented in
this press release to the most directly comparable financial
information presented in accordance with GAAP. Non-GAAP financial
information supplements and should be read together with, and is
not an alternative or substitute for, the Company’s financial
results reported in accordance with GAAP. Because non-GAAP
financial information is not standardized, it may not be possible
to compare these financial measures with other companies’ non-GAAP
financial measures.
- Financial Schedules Follow -
CIVEO CORPORATION
UNAUDITED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per
share amounts)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Revenues
$
176,338
$
183,572
$
531,171
$
530,006
Costs and expenses:
Cost of sales and services
138,542
130,296
409,821
395,235
Selling, general and administrative
expenses
19,635
20,236
55,708
52,885
Depreciation and amortization expense
17,440
16,914
51,269
59,277
Impairment expense
—
—
7,823
—
(Gain) loss on sale of McClelland Lake
Lodge assets, net
171
—
(5,817
)
—
Other operating expense
506
87
992
302
176,294
167,533
519,796
507,699
Operating income
44
16,039
11,375
22,307
Interest expense
(1,725
)
(3,365
)
(6,288
)
(10,625
)
Interest income
50
44
147
126
Other income (expense)
204
(4,709
)
967
(1,832
)
Income (loss) before income taxes
(1,427
)
8,009
6,201
9,976
Income tax (expense) benefit
(3,862
)
1,214
(9,199
)
(2,897
)
Net income (loss)
(5,289
)
9,223
(2,998
)
7,079
Less: Net income (loss) attributable to
noncontrolling interest
(198
)
201
(1,001
)
(53
)
Net income (loss) attributable to Civeo
Corporation
$
(5,091
)
$
9,022
$
(1,997
)
$
7,132
Net income (loss) per share attributable
to Civeo Corporation common shareholders:
Basic
$
(0.36
)
$
0.61
$
(0.14
)
$
0.48
Diluted
$
(0.36
)
$
0.61
$
(0.14
)
$
0.47
Weighted average number of common shares
outstanding:
Basic
14,293
14,814
14,488
14,980
Diluted
14,293
14,891
14,488
15,051
CIVEO CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands)
September 30, 2024
December 31, 2023
(UNAUDITED)
Current assets:
Cash and cash equivalents
$
17,910
$
3,323
Accounts receivable, net
106,707
143,222
Inventories
8,769
6,982
Assets held for sale
—
5,873
Prepaid expenses and other current
assets
12,120
15,846
Total current assets
145,506
175,246
Property, plant and equipment, net
233,864
270,563
Goodwill, net
7,812
7,690
Other intangible assets, net
72,426
77,999
Operating lease right-of-use assets
10,985
12,286
Other noncurrent assets
7,043
4,278
Total assets
$
477,636
$
548,062
Current liabilities:
Accounts payable
$
48,497
$
58,699
Accrued liabilities
36,485
40,523
Income taxes payable
14,026
3,831
Deferred revenue
2,792
4,849
Other current liabilities
5,039
6,334
Total current liabilities
106,839
114,236
Long-term debt
50,078
65,554
Deferred income taxes
5,241
11,803
Operating lease liabilities
7,915
9,264
Other noncurrent liabilities
23,619
24,167
Total liabilities
193,692
225,024
Shareholders' equity:
Common shares
—
—
Additional paid-in capital
1,630,851
1,628,972
Accumulated deficit
(956,545
)
(919,023
)
Treasury stock
(10,130
)
(9,063
)
Accumulated other comprehensive loss
(382,017
)
(380,715
)
Total Civeo Corporation shareholders'
equity
282,159
320,171
Noncontrolling interest
1,785
2,867
Total shareholders' equity
283,944
323,038
Total liabilities and shareholders'
equity
$
477,636
$
548,062
CIVEO CORPORATION
UNAUDITED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
Nine Months Ended
September 30,
2024
2023
Cash flows from operating activities:
Net income (loss)
$
(2,998
)
$
7,079
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization
51,269
59,277
Impairment charges
7,823
—
Deferred income tax expense (benefit)
(6,487
)
2,688
Non-cash compensation charge
1,879
3,297
(Gains) losses on disposals of assets
(6,134
)
2,264
Provision for credit losses, net of
recoveries
15
120
Other, net
1,886
1,900
Changes in operating assets and
liabilities:
Accounts receivable
35,771
(37,411
)
Inventories
(1,690
)
420
Accounts payable and accrued
liabilities
(13,586
)
4,767
Taxes payable
9,681
(5
)
Other current and noncurrent assets and
liabilities, net
(3,415
)
12,197
Net cash flows provided by operating
activities
74,014
56,593
Cash flows from investing activities:
Capital expenditures
(18,405
)
(21,179
)
Proceeds from dispositions of property,
plant and equipment
10,700
7,070
Other, net
183
—
Net cash flows used in investing
activities
(7,522
)
(14,109
)
Cash flows from financing activities:
Term loan repayments
—
(22,338
)
Revolving credit borrowings (repayments),
net
(9,246
)
(6,732
)
Debt issuance costs
(2,976
)
—
Dividends paid
(10,984
)
(3,731
)
Repurchases of common shares
(24,060
)
(9,222
)
Taxes paid on vested shares
(1,067
)
—
Net cash flows used in financing
activities
(48,333
)
(42,023
)
Effect of exchange rate changes on
cash
(3,572
)
(598
)
Net change in cash and cash
equivalents
14,587
(137
)
Cash and cash equivalents, beginning of
period
3,323
7,954
Cash and cash equivalents, end of
period
$
17,910
$
7,817
CIVEO CORPORATION
SEGMENT DATA
(in thousands)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Revenues
Canada
$
57,736
$
95,144
$
204,423
$
280,067
Australia
116,622
87,885
316,967
247,418
Other
1,980
543
9,781
2,521
Total revenues
$
176,338
$
183,572
$
531,171
$
530,006
EBITDA (1)
Canada
$
3,171
$
18,154
$
31,944
$
49,983
Australia
22,421
18,785
58,494
52,600
Corporate, other and eliminations
(7,706
)
(8,896
)
(25,826
)
(22,778
)
Total EBITDA
$
17,886
$
28,043
$
64,612
$
79,805
Adjusted EBITDA (1)
Canada
$
3,434
$
23,201
$
26,454
$
55,320
Australia
22,474
18,869
64,417
52,817
Corporate, other and eliminations
(7,130
)
(7,906
)
(22,374
)
(20,167
)
Total adjusted EBITDA
$
18,778
$
34,164
$
68,497
$
87,970
Operating income (loss)
Canada
$
(8,282
)
$
10,811
$
(2,801
)
$
9,486
Australia
12,349
9,067
30,033
23,140
Corporate, other and eliminations
(4,023
)
(3,839
)
(15,857
)
(10,319
)
Total operating income (loss)
$
44
$
16,039
$
11,375
$
22,307
(1) Please see Non-GAAP Reconciliation
Schedule.
CIVEO CORPORATION
NON-GAAP
RECONCILIATIONS
(in thousands)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
Twelve Months Ended September
30,
2024
2023
2024
2023
2024
EBITDA (1)
$
17,886
$
28,043
$
64,612
$
79,805
$
113,744
Adjusted EBITDA (1)
$
18,778
$
34,164
$
68,497
$
87,970
$
87,021
Free Cash Flow (2)
$
28,278
$
31,721
$
66,309
$
42,484
Net Leverage Ratio (3)
0.3x
(1)
The term EBITDA is a non-GAAP financial
measure that is defined as net income (loss) attributable to Civeo
Corporation plus interest, taxes, depreciation and amortization.
The term Adjusted EBITDA is a non-GAAP financial measure that is
defined as EBITDA adjusted to exclude certain other unusual or
non-operating items. For the three months ended September 30, 2024,
Civeo revised its definition of Adjusted EBITDA to exclude non-cash
share-based compensation. Comparative periods presented were also
updated to reflect this revision. 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 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 income (loss)
attributable to Civeo Corporation, which is the most directly
comparable measure of financial performance calculated under
generally accepted accounting principles (in thousands)
(unaudited):
Three Months Ended
September 30,
Nine Months Ended
September 30,
Twelve Months Ended September
30,
2024
2023
2024
2023
2024
Net income (loss) attributable to Civeo
Corporation
$
(5,091
)
$
9,022
$
(1,997
)
$
7,132
$
21,028
Income tax expense (benefit)
3,862
(1,214
)
9,199
2,897
16,935
Depreciation and amortization
17,440
16,914
51,269
59,277
67,134
Interest income
(50
)
(44
)
(147
)
(126
)
(193
)
Interest expense
1,725
3,365
6,288
10,625
8,840
EBITDA
$
17,886
$
28,043
$
64,612
$
79,805
$
113,744
Adjustments to EBITDA
Impairment of long-lived assets (a)
—
—
7,823
—
9,218
Net (gain) loss on disposition of
McClelland Lake Lodge assets (b)
171
4,868
(5,817
)
4,868
(38,983
)
Share-based compensation (c)
721
1,253
1,879
3,297
3,042
Adjusted EBITDA
$
18,778
$
34,164
$
68,497
$
87,970
$
87,021
(a)
Relates to asset impairments in the first quarter of 2024 and
the fourth quarter of 2023. In the first quarter of 2024, we
recorded a pre-tax loss related to the impairment of long-lived
assets in our Australian segment of $5.7 million and a pre-tax loss
related to the impairment of long-lived assets in the U.S. of $2.1
million. In the fourth quarter of 2023, we recorded a pre-tax loss
related to the impairment of long-lived assets in the U.S. of $1.4
million.
(b)
Relates to proceeds received and expenses
incurred associated with the dismantlement and sale of the
McClelland Lake Lodge. In the third quarter of 2024, we recorded
expenses associated with the sale of our McClelland Lake Lodge of
$0.2 million, which are included in (Gain) loss on sale of
McClelland Lake Lodge assets, net on the unaudited statements of
operations. In the second quarter of 2024, we recorded expenses
associated with the sale of our McClelland Lake Lodge of $0.1
million, which are included in (Gain) loss on sale of McClelland
Lake Lodge assets, net on the unaudited statements of operations.
In the first quarter of 2024, we recorded gains associated with the
sale of the McClelland Lake Lodge of $6.1 million, which are
included in (Gain) loss on sale of McClelland Lake Lodge assets,
net on the unaudited statements of operations. In the fourth
quarter of 2023, we recorded gains associated with the sale of the
McClelland Lake Lodge of $33.2 million, which are included in
(Gain) loss on sale of McClelland Lake Lodge assets, net ($23.5
million) and Other income ($9.7 million) on the unaudited
statements of operations. In the third quarter of 2023, we recorded
expenses associated with the sale of our McClelland Lake Lodge of
$4.9 million, which are included in Other income (expense) on the
unaudited statements of operations.
(c)
Represents share-based compensation
expense associated with performance share awards, restricted share
awards, restricted share units and deferred share awards.
(2)
The term 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. 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.
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
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Net Cash Flows Provided by Operating
Activities
$
35,671
$
36,832
$
74,014
$
56,593
Capital expenditures
(7,476
)
(9,462
)
(18,405
)
(21,179
)
Proceeds from dispositions of property,
plant and equipment
83
4,351
10,700
7,070
Free Cash Flow
$
28,278
$
31,721
$
66,309
$
42,484
(3)
The term net leverage ratio is a non-GAAP
financial measure that is defined as net debt divided by
bank-adjusted EBITDA. Net debt, bank-adjusted EBITDA and net
leverage ratio are not financial measures under GAAP and should not
be considered in isolation from or as a substitute for total debt,
net income (loss) or cash flow measures prepared in accordance with
GAAP or as a measure of profitability or liquidity. Additionally,
net debt, bank-adjusted EBITDA and net leverage ratio may not be
comparable to other similarly titled measures of other companies.
Civeo has included net debt, bank-adjusted EBITDA and net leverage
ratio as a supplemental disclosure because its management believes
that this data provides useful information regarding the level of
the Company’s indebtedness and its ability to service debt.
Additionally,
per Civeo’s credit agreement, the Company
is required to maintain a net leverage ratio below 3.0x every
quarter to remain in compliance with the credit agreement.
The following table sets forth a
reconciliation of net debt, bank-adjusted EBITDA and net leverage
ratio to the most directly comparable measures of financial
performance calculated under GAAP (in thousands) (unaudited):
As of September 30,
2024
Total debt
$
50,078
Less: Cash and cash equivalents
17,910
Net debt
$
32,168
Adjusted EBITDA for the twelve months
ended September 30, 2024 (a)
$
87,021
Adjustments to Adjusted EBITDA
Interest income
193
Incremental adjustments for McClelland
Lake Lodge disposition (b)
13,781
Bank-adjusted EBITDA
$
100,995
Net leverage ratio (c)
0.3x
(a) See footnote 1 above for
reconciliation of Adjusted EBITDA to net income (loss) attributable
to Civeo Corporation
(b) Related to incremental adjustments
associated with the sale of the McClelland Lake Lodge assets as
required by our credit facility
(c) Calculated as net debt divided by
bank-adjusted EBITDA
CIVEO CORPORATION
NON-GAAP RECONCILIATIONS -
GUIDANCE
(in millions)
(unaudited)
Year Ending December 31,
2024
EBITDA Range (1)
$
78.2
$
83.2
Adjusted EBITDA Range (1)
$
83.0
$
88.0
(1)
The following table sets forth a reconciliation of estimated
EBITDA and Adjusted EBITDA to estimated net loss, which is the most
directly comparable measure of financial performance calculated
under generally accepted accounting principles (in millions)
(unaudited):
Year Ending December 31,
2024
(estimated)
Net loss
$
(11.8
)
$
(8.8
)
Income tax expense
12.0
14.0
Depreciation and amortization
70.0
70.0
Interest expense
8.0
8.0
EBITDA
$
78.2
$
83.2
Adjustments to EBITDA
Impairment expense
7.8
7.8
Net gain on disposition of McClelland Lake
Lodge assets
(6.0
)
(6.0
)
Share-based compensation
3.0
3.0
Adjusted EBITDA
$
83.0
$
88.0
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
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Supplemental Operating Data - Canadian
Segment
Revenues
Accommodation revenue (1)
$
48,747
$
71,417
$
180,793
$
208,000
Mobile facility rental revenue (2)
123
17,314
1,473
54,752
Food and other services revenue (3)
8,866
6,413
22,157
17,315
Total Canadian revenues
$
57,736
$
95,144
$
204,423
$
280,067
Costs
Accommodation cost
$
38,762
$
46,063
$
132,679
$
150,592
Mobile facility rental cost
361
11,636
4,413
37,736
Food and other services cost
8,385
5,867
20,839
15,701
Indirect other cost
2,544
2,406
8,227
7,693
Total Canadian cost of sales and
services
$
50,052
$
65,972
$
166,158
$
211,722
Average daily rates (4)
$
100
$
98
$
97
$
98
Billed rooms (5)
483,767
726,364
1,846,163
2,093,459
Canadian dollar to U.S. dollar
$
0.733
$
0.746
$
0.735
$
0.743
Supplemental Operating Data -
Australian Segment
Revenues
Accommodation revenue (1)
$
51,370
$
46,012
$
147,391
$
130,953
Food and other services revenue (3)
65,252
41,873
169,576
116,465
Total Australian revenues
$
116,622
$
87,885
$
316,967
$
247,418
Costs
Accommodation cost
$
24,783
$
22,404
$
70,990
$
63,670
Food and other services cost
58,787
38,898
154,218
110,132
Indirect other cost
3,497
2,293
9,009
6,646
Total Australian cost of sales and
services
$
87,067
$
63,595
$
234,217
$
180,448
Average daily rates (4)
$
79
$
74
$
78
$
76
Billed rooms (5)
647,358
623,436
1,886,647
1,734,004
Australian dollar to U.S. dollar
$
0.670
$
0.655
$
0.662
$
0.669
(1)
Includes revenues related to lodge and
village rooms and hospitality services for owned rooms for the
periods presented.
(2)
Includes revenues related to mobile assets
for the periods presented.
(3)
Includes revenues related to food
services, laundry and water and wastewater treatment services, and
facilities management for the periods presented.
(4)
Average daily rate is based on billed
rooms and accommodation revenue.
(5)
Billed rooms represents total billed days
for owned assets for the periods presented.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241030544227/en/
Regan Nielsen Civeo Corporation Vice President, Corporate
Development & Investor Relations 713-510-2400
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