- Net income of $4.2 million, or $0.07 per diluted share,
reported for the quarter
- Consolidated revenue of $194.3 million increased 6%
sequentially, boosted by higher offshore and international
activity
- Adjusted EBITDA (a non-GAAP measure(1)) of $23.4 million
increased 23% sequentially
- Offshore/Manufactured Products segment revenue increased 18%
sequentially to $111.0 million – the highest level reported since
the fourth quarter of 2016
- Offshore/Manufactured Products segment's backlog increased
sequentially for a fifth consecutive quarter totaling $348 million
as of September 30, with a quarterly book-to-bill ratio of 1.2x
- Third quarter segment bookings were augmented by two contract
awards exceeding $15 million each
- Generated operating cash flow of $13.6 million in the
quarter
- Incurred facility consolidation charges of $1.6 million ($1.3
million after-tax, or $0.02 per share) associated with the planned
sales of certain manufacturing and service locations and the
relocation of related equipment
Oil States International, Inc. (NYSE: OIS):
Three Months Ended
% Change
(Unaudited, In Thousands, Except Per Share
Amounts)
September 30,
2023
June 30, 2023
September 30,
2022
Sequential
Year-over- Year
Consolidated results:
Revenues
$
194,289
$
183,529
$
189,394
6
%
3
%
Operating income(2)
$
6,190
$
3,269
$
5,058
89
%
22
%
Net income
$
4,212
$
558
$
2,143
655
%
97
%
Diluted earning per share
$
0.07
$
0.01
$
0.03
600
%
133
%
Adjusted EBITDA(1)
$
23,441
$
19,016
$
21,962
23
%
7
%
Revenues by segment:
Offshore/Manufactured Products
$
111,043
$
94,086
$
96,037
18
%
16
%
Well Site Services
59,831
64,536
60,509
(7
)%
(1
)%
Downhole Technologies
23,415
24,907
32,848
(6
)%
(29
)%
Operating income (loss) by segment:
Offshore/Manufactured Products(2)
$
17,804
$
11,253
$
13,373
58
%
33
%
Well Site Services
3,285
4,732
2,359
(31
)%
39
%
Downhole Technologies
(4,118
)
(2,536
)
(342
)
(62
)%
n.m.
Adjusted Segment EBITDA (a non-GAAP
measure(1)):
Offshore/Manufactured Products
$
24,442
$
15,981
$
18,304
53
%
34
%
Well Site Services
9,716
11,425
9,723
(15
)%
—
%
Downhole Technologies
(88
)
1,639
4,100
n.m.
n.m.
___________________
(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.
(2)
Operating income in the third quarter of
2023 included charges of $1.6 million associated with the
Offshore/Manufactured Products segment's ongoing consolidation of
certain manufacturing and service locations. Operating income in
the third quarter of 2022 included a $6.1 million gain related to
the Offshore/Manufactured Products segment’s settlement of
outstanding litigation against certain service providers.
Oil States International, Inc. reported net income of $4.2
million, or $0.07 per share, and Adjusted EBITDA of $23.4 million
for the third quarter of 2023 on revenues of $194.3 million.
Reported third quarter 2023 net income included facility
consolidation charges of $1.6 million ($1.3 million after-tax, or
$0.02 per share). These results compare to revenues of $183.5
million, net income of $0.6 million, or $0.01 per share, and
Adjusted EBITDA of $19.0 million reported in the second quarter of
2023.
Oil States' President and Chief Executive Officer, Cindy B.
Taylor, stated,
"Our third quarter results benefited from growth in offshore and
international spending, with significant sequential and
year-over-year increases in offshore-project activity and backlog
conversion. However, our quarterly performance was tempered by an
industry-wide decline in U.S. well completions which has been
ongoing since the start of 2023. We believe the U.S. activity
declines were triggered by weaker commodity prices in effect
earlier this year. With currently improved commodity pricing, we
expect U.S. activity to recover into 2024.
"Reported revenues in our Offshore/Manufactured Products segment
rose 18% sequentially and 16% year-over-year to $111 million in the
third quarter of 2023 – the segment's highest revenue level since
the fourth quarter of 2016. Segment backlog increased for a fifth
consecutive quarter totaling $348 million as of September 30 –
benefiting from our customers' increased planned investments in
traditional and non-traditional offshore projects outside the
United States. We received two notable project awards in the third
quarter, including a production facility equipment order and a
contract for our Merlin™ Deepsea Mineral Riser System designed for
use in harvesting seabed minerals at extreme water depths. These
minerals are critical components for the development of large-scale
battery technology. The segment's bookings totaled $129 million,
yielding a quarterly book-to-bill ratio of 1.2x.
"The receipt of another contract award for our Merlin™ Deepsea
Mineral Riser System this quarter demonstrates the industry's
recognition of our expertise and the technologies we have developed
to enable pathways toward a lower-carbon multi-source energy mix to
meet growing global energy demands. We are connecting the energy
future by leveraging our rich oil and gas heritage in the support
of additional energy sources while augmenting our core
technologies, setting the stage for longer-term growth.
"Our continued investments in technology and innovation were
also recently recognized by Gulf Energy, with our Active Seat Gate
Valve receiving the 2023 Gulf Energy Information Excellence Award
for Best Production Technology. This proprietary valve-technology
provides operators with exceptional sealing performance while
substantially reducing the amount of heavy grease used during valve
operations and personnel intervention at the wellhead.
"In the third quarter, we generated cash flow from operations of
$14 million and invested $2 million in net capital expenditures.
With no short-term debt outstanding, cash on-hand increased to $53
million during the period. We expect to enhance our liquidity
position and reduce our net debt in future quarters.
"We remain very encouraged by the continued up-cycle in offshore
and international activity, customer acceptance of our recent
technology introductions and growing backlog levels in our
Offshore/Manufactured Products segment coupled with an improving
commodity price environment."
Business Segment Results
(See Segment Data and Adjusted Segment EBITDA tables below)
Offshore/Manufactured Products
Offshore/Manufactured Products reported revenues of $111.0
million – the segment's highest revenue levels since the fourth
quarter of 2016, operating income of $17.8 million and Adjusted
Segment EBITDA of $24.4 million in the third quarter of 2023,
compared to revenues of $94.1 million, operating income of $11.3
million and Adjusted Segment EBITDA of $16.0 million reported in
the second quarter of 2023. During the third quarter of 2023, the
segment recorded charges of $1.6 million associated with ongoing
consolidation of certain manufacturing and service locations to
gain operational efficiencies. Adjusted Segment EBITDA margin in
the third quarter of 2023 was 22%, compared to 17% in the second
quarter of 2023.
Backlog totaled $348 million as of September 30, 2023, an
increase of $10 million, or 3%, from June 30, 2023 and $90 million,
or 35%, from September 30, 2022. The current quarter-end backlog is
at its highest level since December 31, 2015. Third quarter 2023
bookings totaled $129 million, yielding a quarterly book-to-bill
ratio of 1.2x (1.2x year-to-date).
Well Site Services
Well Site Services reported revenues of $59.8 million, operating
income of $3.3 million and Adjusted Segment EBITDA of $9.7 million
in the third quarter of 2023, compared to revenues of $64.5
million, operating income of $4.7 million and Adjusted Segment
EBITDA of $11.4 million reported in the second quarter of 2023.
Adjusted Segment EBITDA margin was 16% in the third quarter of
2023, compared to 18% in the second quarter of 2023.
Downhole Technologies
Downhole Technologies reported revenues of $23.4 million and an
operating loss of $4.1 million while Adjusted Segment EBITDA was
essentially breakeven in the third quarter of 2023, compared to
revenues of $24.9 million, an operating loss of $2.5 million and
Adjusted Segment EBITDA of $1.6 million reported in the second
quarter of 2023.
Corporate
Corporate operating expenses in the third quarter of 2023
totaled $10.8 million.
Interest Expense, Net
Net interest expense totaled $1.9 million in the third quarter
of 2023, which included $0.5 million of non-cash amortization of
deferred debt issuance costs.
Income Taxes
The Company recognized tax expense of $0.2 million on pre-tax
income of $4.4 million during the third quarter of 2023. In the
second quarter of 2023, the Company recognized tax expense of $0.9
million on pre-tax income of $1.4 million.
Cash Flows
During the third quarter of 2023, the Company generated cash
flows from operations of $13.6 million and invested $6.0 million
($2.3 million net of proceeds from sales of property and equipment)
in new equipment to support future growth.
Financial Condition
Cash on-hand increased $10.5 million in the quarter, totaling
$52.9 million at September 30, 2023. No borrowings were outstanding
under the Company's asset-based revolving credit facility (the "ABL
Facility") at September 30, 2023. Liquidity (cash plus borrowing
availability) totaled $137.4 million at September 30, 2023, with
amounts available to be drawn under the ABL Facility totaling $84.5
million.
Conference Call
Information
The call is scheduled for October 27, 2023 at 11 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 conflicts and
tensions, the financial health of our customers, the actions of the
Organization of Petroleum Exporting Countries ("OPEC") and other
producing nations with respect to crude oil production levels and
pricing, the impact of environmental matters, including executive
actions and regulatory efforts to adopt environmental or climate
change regulations that may result in increased operating costs or
reduced oil and natural gas production or demand globally, 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 Reports 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
Nine Months Ended
September 30,
2023
June 30, 2023
September 30,
2022
September 30,
2023
September 30,
2022
Revenues:
Products
$
102,636
$
92,630
$
99,743
$
295,106
$
284,537
Services
91,653
90,899
89,651
278,911
250,735
194,289
183,529
189,394
574,017
535,272
Costs and expenses:
Product costs
80,188
72,659
81,576
231,524
225,765
Service costs
70,239
69,371
69,723
211,668
194,294
Cost of revenues (exclusive of
depreciation and amortization expense presented below)
150,427
142,030
151,299
443,192
420,059
Selling, general and administrative
expense
24,241
23,528
23,374
71,785
70,964
Depreciation and amortization expense
15,416
15,537
16,413
46,209
51,469
Other operating income, net(1)
(1,985
)
(835
)
(6,750
)
(2,503
)
(6,852
)
188,099
180,260
184,336
558,683
535,640
Operating income (loss)
6,190
3,269
5,058
15,334
(368
)
Interest expense, net
(1,928
)
(2,059
)
(2,637
)
(6,378
)
(7,947
)
Other income, net
186
210
491
672
1,892
Income (loss) before income taxes
4,448
1,420
2,912
9,628
(6,423
)
Income tax provision
(236
)
(862
)
(769
)
(2,700
)
(6,002
)
Net income (loss)
$
4,212
$
558
$
2,143
$
6,928
$
(12,425
)
Net income (loss) per share:
Basic
$
0.07
$
0.01
$
0.03
$
0.11
$
(0.20
)
Diluted
0.07
0.01
0.03
0.11
(0.20
)
Weighted average number of common shares
outstanding:
Basic
62,651
62,803
62,674
62,760
61,292
Diluted
63,060
63,174
62,676
63,135
61,292
________________
(1)
Other operating income, net for the three
months and nine months ended September 30, 2023 included facility
consolidation charges of $1.6 million associated with the
Offshore/Manufactured Products segment's ongoing consolidation and
relocation of certain manufacturing and service locations. Other
operating income, net for the three and nine months ended September
30, 2022 included a gain of $6.1 million related to the
Offshore/Manufactured Products segment's settlement of outstanding
litigation against certain service providers.
OIL STATES INTERNATIONAL, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(In Thousands)
September 30, 2023
December 31, 2022
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
52,904
$
42,018
Accounts receivable, net
189,249
218,769
Inventories, net
206,541
182,658
Prepaid expenses and other current
assets
36,015
19,317
Total current assets
484,709
462,762
Property, plant, and equipment, net
279,146
303,835
Operating lease assets, net
22,002
23,028
Goodwill, net
79,399
79,282
Other intangible assets, net
157,077
169,798
Other noncurrent assets
25,687
25,687
Total assets
$
1,048,020
$
1,064,392
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Current portion of long-term debt
$
589
$
17,831
Accounts payable
58,489
73,251
Accrued liabilities
49,138
49,057
Current operating lease liabilities
6,461
6,142
Income taxes payable
2,593
2,605
Deferred revenue
50,370
44,790
Total current liabilities
167,640
193,676
Long-term debt
135,437
135,066
Long-term operating lease liabilities
18,768
20,658
Deferred income taxes
7,386
6,652
Other noncurrent liabilities
20,425
18,782
Total liabilities
349,656
374,834
Stockholders' equity:
Common stock
772
766
Additional paid-in capital
1,127,443
1,122,292
Retained earnings
278,955
272,027
Accumulated other comprehensive loss
(77,271
)
(78,941
)
Treasury stock
(631,535
)
(626,586
)
Total stockholders' equity
698,364
689,558
Total liabilities and stockholders'
equity
$
1,048,020
$
1,064,392
OIL STATES INTERNATIONAL, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In Thousands)
(Unaudited)
Nine Months Ended September
30,
2023
2022
Cash flows from operating activities:
Net income (loss)
$
6,928
$
(12,425
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization expense
46,209
51,469
Stock-based compensation expense
5,157
5,167
Amortization of deferred financing
costs
1,344
1,416
Deferred income tax provision
(benefit)
(66
)
1,295
Gains on disposals of assets
(3,335
)
(1,538
)
Settlement of disputes with seller of
GEODynamics, Inc.
—
620
Other, net
(614
)
459
Changes in operating assets and
liabilities, net of effect from acquired business:
Accounts receivable
29,538
(27,745
)
Inventories
(23,754
)
(18,680
)
Accounts payable and accrued
liabilities
(17,515
)
8,873
Deferred revenue
5,580
7,496
Other operating assets and liabilities,
net
2,905
2,586
Net cash flows provided by operating
activities
52,377
18,993
Cash flows from investing activities:
Capital expenditures
(23,370
)
(13,263
)
Proceeds from disposition of property and
equipment
4,374
2,211
Acquisition of business, net of cash
acquired
—
(8,125
)
Other, net
(120
)
(168
)
Net cash flows used in investing
activities
(19,116
)
(19,345
)
Cash flows from financing activities:
Revolving credit facility borrowings
35,693
9,830
Revolving credit facility repayments
(35,693
)
(9,830
)
Repayment of 1.50% convertible senior
notes
(17,315
)
(6,272
)
Payment of promissory note to seller of
GEODynamics, Inc.
—
(10,000
)
Other debt and finance lease
repayments
(340
)
(541
)
Payment of financing costs
(101
)
(81
)
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
(22,705
)
(17,896
)
Effect of exchange rate changes on cash
and cash equivalents
330
(1,501
)
Net change in cash and cash
equivalents
10,886
(19,749
)
Cash and cash equivalents, beginning of
period
42,018
52,852
Cash and cash equivalents, end of
period
$
52,904
$
33,103
Cash paid (received) for:
Interest
$
4,353
$
4,605
Income taxes, net
(34
)
(67
)
OIL STATES INTERNATIONAL, INC.
AND SUBSIDIARIES
SEGMENT DATA
(In Thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
2023(2)
June 30, 2023
September 30,
2022(3)
September 30,
2023(2)
September 30,
2022(3)
Revenues(1):
Offshore/Manufactured Products
Project-driven:
Products
$
45,527
$
32,210
$
38,911
$
116,869
$
113,853
Services
30,391
24,846
23,421
79,867
71,714
75,918
57,056
62,332
196,736
185,567
Military and other products
7,195
7,965
9,995
22,157
23,104
Short-cycle products
27,930
29,065
23,710
84,435
67,945
Total Offshore/Manufactured Products
111,043
94,086
96,037
303,328
276,616
Well Site Services
59,831
64,536
60,509
191,425
163,500
Downhole Technologies
23,415
24,907
32,848
79,264
95,156
Total revenues
$
194,289
$
183,529
$
189,394
$
574,017
$
535,272
Operating income (loss):
Offshore/Manufactured Products
$
17,804
$
11,253
$
13,373
$
40,147
$
33,010
Well Site Services
3,285
4,732
2,359
14,983
(435
)
Downhole Technologies
(4,118
)
(2,536
)
(342
)
(8,173
)
(3,332
)
Corporate
(10,781
)
(10,180
)
(10,332
)
(31,623
)
(29,611
)
Total operating income (loss)
$
6,190
$
3,269
$
5,058
$
15,334
$
(368
)
________________
(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.
(2)
Operating income for the three months and
nine months ended September 30, 2023 included facility
consolidation charges of $1.6 million associated with the
Offshore/Manufactured Products segment's ongoing consolidation and
relocation of certain manufacturing and service locations.
(3)
Operating income (loss) for the three and
nine months ended September 30, 2022 included a gain of $6.1
million related to the Offshore/Manufactured Products segment's
settlement of outstanding litigation against certain service
providers.
OIL STATES INTERNATIONAL, INC.
AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO
NON-GAAP FINANCIAL INFORMATION
ADJUSTED EBITDA (A)
(In Thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
2023
June 30, 2023
September 30,
2022
September 30,
2023
September 30,
2022
Net income (loss)
$
4,212
$
558
$
2,143
$
6,928
$
(12,425
)
Interest expense, net
1,928
2,059
2,637
6,378
7,947
Income tax provision
236
862
769
2,700
6,002
Depreciation and amortization expense
15,416
15,537
16,413
46,209
51,469
Facility consolidation charges
1,649
—
—
1,649
—
Settlement of disputes with seller of
GEODynamics, Inc.
—
—
—
—
620
Gains on extinguishment of 1.50%
convertible senior notes
—
—
—
—
(157
)
Adjusted EBITDA
$
23,441
$
19,016
$
21,962
$
63,864
$
53,456
________________
(A)
The term Adjusted EBITDA consists of net
income (loss) plus net interest expense, taxes, depreciation and
amortization expense, facility consolidation charges 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
Nine Months Ended
September 30,
2023
June 30, 2023
September 30,
2022
September 30,
2023
September 30,
2022
Offshore/Manufactured Products:
Operating income
$
17,804
$
11,253
$
13,373
$
40,147
$
33,010
Other income (expense), net
68
81
(141
)
314
(55
)
Depreciation and amortization expense
4,921
4,647
5,072
14,236
15,651
Facility consolidation charges
1,649
—
—
1,649
—
Adjusted Segment EBITDA
$
24,442
$
15,981
$
18,304
$
56,346
$
48,606
Well Site Services:
Operating income (loss)
$
3,285
$
4,732
$
2,359
$
14,983
$
(435
)
Other income, net
118
129
632
358
2,496
Depreciation and amortization expense
6,313
6,564
6,732
19,023
22,059
Adjusted Segment EBITDA
$
9,716
$
11,425
$
9,723
$
34,364
$
24,120
Downhole Technologies:
Operating loss
$
(4,118
)
$
(2,536
)
$
(342
)
$
(8,173
)
$
(3,332
)
Other expense, net
—
—
—
—
(86
)
Depreciation and amortization expense
4,030
4,175
4,442
12,480
13,249
Adjusted Segment EBITDA
$
(88
)
$
1,639
$
4,100
$
4,307
$
9,831
Corporate:
Operating loss
$
(10,781
)
$
(10,180
)
$
(10,332
)
$
(31,623
)
$
(29,611
)
Other expense, net
—
—
—
—
(463
)
Depreciation and amortization expense
152
151
167
470
510
Settlement of disputes with seller of
GEODynamics, Inc.
—
—
—
—
620
Gains on extinguishment of 1.50%
convertible senior notes
—
—
—
—
(157
)
Adjusted Segment EBITDA
$
(10,629
)
$
(10,029
)
$
(10,165
)
$
(31,153
)
$
(29,101
)
________________
(B)
The term Adjusted Segment EBITDA consists
of operating income (loss) plus other income (expense),
depreciation and amortization expense, facility consolidation
charges 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231027838795/en/
Lloyd A. Hajdik Oil States International, Inc. Executive Vice
President, Chief Financial Officer and Treasurer (713) 652-0582
Oil States (NYSE:OIS)
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