- Net income of $15.2 million, or $0.24 per share, reported for
the quarter, which included a facility sale gain of $15.3 million
partially offset by restructuring and other charges totaling $3.1
million (net after-tax benefit of $9.6 million, or $0.16 per
share)
- Adjusted net income of $5.5 million, or $0.09 per share,
excluding the facility sale gain and restructuring charges (a
non-GAAP measure(1))
- Consolidated revenues of $164.6 million decreased 6%
sequentially, driven primarily by lower U.S. land-based activity
and the exit of certain service lines in the third quarter of
2024
- Adjusted EBITDA (a non-GAAP measure(1)) of $18.7 million
- Generated cash flows from operations of $18.2 million
- Sold a previously idled facility for net cash proceeds of $24.8
million, resulting in a pre-tax gain of $15.3 million
- Purchased $9.1 million of our common stock during the
quarter
Oil States International, Inc. (NYSE: OIS):
Three Months Ended
% Change
(Unaudited, In Thousands, Except Per Share
Amounts)
December 31,
2024
September 30,
2024
December 31,
2023
Sequential
Year-over- Year
Consolidated results:
Revenues
$
164,595
$
174,348
$
208,266
(6
)%
(21
)%
Operating income (loss)(3)
$
18,484
$
(11,041
)
$
7,830
n.m.
136
%
Net income (loss)
$
15,164
$
(14,349
)
$
5,963
n.m.
154
%
Adjusted net income (loss), excluding
charges and credits(1)
$
5,537
$
2,696
$
7,071
105
%
(22
)%
Adjusted EBITDA(1)
$
18,734
$
21,531
$
23,978
(13
)%
(22
)%
Revenues by segment(2):
Offshore Manufactured Products
$
107,253
$
102,234
$
126,489
5
%
(15
)%
Completion and Production Services
30,090
40,099
51,208
(25
)%
(41
)%
Downhole Technologies
27,252
32,015
30,569
(15
)%
(11
)%
Revenues by destination:
Offshore and international
$
118,187
$
113,856
$
135,885
4
%
(13
)%
U.S. land
46,408
60,492
72,381
(23
)%
(36
)%
Operating income (loss) by
segment(2)(3):
Offshore Manufactured Products
$
21,009
$
19,310
$
24,167
9
%
(13
)%
Completion and Production Services
(4,004
)
(18,267
)
(1,102
)
78
%
(263
)%
Downhole Technologies
(4,031
)
(3,653
)
(5,726
)
(10
)%
30
%
Corporate
5,510
(8,431
)
(9,509
)
n.m.
n.m.
Adjusted Segment EBITDA(1)(2):
Offshore Manufactured Products
$
24,748
$
23,303
$
28,838
6
%
(14
)%
Completion and Production Services
3,545
5,413
5,903
(35
)%
(40
)%
Downhole Technologies
131
1,078
(1,420
)
(88
)%
n.m.
Corporate
(9,690
)
(8,263
)
(9,343
)
117
%
104
%
___________________
(1)
These 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)
In the first quarter of 2024, certain
short-cycle, consumable product operations historically reported
within the Offshore Manufactured Products segment were integrated
into the Downhole Technologies segment. 2023 segment financial
data, backlog and other information (as presented herein) were
conformed with the revised segment presentation. In the third
quarter of 2024, the Well Site Services segment’s name was changed
to Completion and Production Services following the sale of its
remaining drilling rigs and the exit of its flowback and well
testing service offerings.
(3)
Operating income (loss) included charges
totaling: $3.1 million for the three months ended December 31,
2024; $18.2 million for the three months ended September 30, 2024;
and $1.4 million for the three months ended December 31, 2023.
Fourth quarter 2024 results also included a gain of $15.3 million
associated with the sale of a previously idled facility. See
“Segment Data” below for additional information.
Oil States International, Inc. reported net income of $15.2
million, or $0.24 per share, and Adjusted EBITDA of $18.7 million
for the fourth quarter of 2024 on revenues of $164.6 million.
Reported fourth quarter 2024 net income included a gain of $15.3
million ($12.1 million after-tax or $0.20 per share) associated
with the sale of a previously idled facility and charges of $3.1
million ($2.5 million after-tax or $0.04 per share) associated
primarily with the restructuring of certain U.S. land-based
operations and facility closures. These results compare to revenues
of $174.3 million, a net loss of $14.3 million, or $0.23 per share,
and Adjusted EBITDA of $21.5 million reported in the third quarter
of 2024, which included charges of $18.2 million ($17.0 million
after-tax, or $0.27 per share) associated with the restructuring of
certain U.S. land-based operations, including facility closures,
personnel reductions and patent defense.
For the year ended December 31, 2024, the Company reported a net
loss of $11.3 million, or $0.18 per share, and Adjusted EBITDA of
$77.0 million on revenues of $692.6 million. The full-year 2024
results included a non-cash goodwill impairment charge of $10.0
million ($9.5 million after-tax, or $0.15 per share), charges of
$28.3 million ($22.3 million after-tax or $0.36 per share)
associated with the restructuring of certain U.S. land-based
operations, including facility closures, personnel reductions and
patent defense, partially offset by a gain of $15.3 million ($12.1
million after-tax or $0.20 per share) associated with the sale of a
previously idled facility. The 2024 results compare to net income
of $12.9 million, or $0.20 per share, and Adjusted EBITDA of $87.8
million on revenues of $782.3 million in 2023. The full-year 2023
results included charges of $3.1 million ($2.5 million after-tax,
or $0.04 per share) associated with facility consolidation and
patent defense.
Oil States’ President and Chief Executive Officer, Cindy B.
Taylor, stated:
“Continuing with earlier themes, our offshore and international
operations were very resilient in terms of revenue, Adjusted EBITDA
and bookings during the fourth quarter. However, sequential
improvements in these regions were offset by ongoing declines in
our U.S. land driven operations due to extensive holiday slowdowns
in activity during the quarter. Our completions work in the Gulf of
America was also slow to recover from disruptions noted in the
third quarter, but recently has recovered to much higher activity
levels.
“Our Offshore Manufactured Products segment revenues rose 5%
sequentially, totaling $107 million in the fourth quarter, while
Adjusted Segment EBITDA rose 6% to $25 million on a favorable
revenue mix. Bookings increased 1% sequentially, totaling $113
million compared to $112 million booked in the third quarter of
2024, yielding backlog of $311 million as of December 31 and a
quarterly book-to-bill ratio of 1.1x. The outlook for our offshore
and international project-driven businesses remains strong with
growing market acceptance of our new technology offerings including
our integrated riser joint used in managed pressure drilling
operations.
“Given the highly cyclical nature of select U.S. service lines,
we continued our strategic initiatives around business mix
optimization and capital allocation within our Completion and
Production Services and Downhole Technologies segments. Strategic
efforts to improve our U.S. operational performance along with the
exit of more commoditized business lines should enhance our U.S.
land driven operating margins in future periods.”
Business Segment Results
In first quarter 2024, certain short-cycle, consumable product
operations historically reported within the Offshore Manufactured
Products segment (legacy frac plugs and elastomer products) were
integrated into our Downhole Technologies segment to better align
with the underlying activity demand drivers and current segment
management structure, as well as provide for additional operational
synergies. Historical 2023 segment financial data (GAAP and
non-GAAP), backlog and other information (as presented herein) were
conformed with the revised segment presentation. Additionally,
following the sale of its remaining U.S. land-based drilling rigs
and the exit of the flowback and well testing service offering in
the third quarter of 2024, the Company’s Well Site Services segment
name was changed to Completion and Production Services.
(See Segment Data and Adjusted Segment EBITDA tables below)
Offshore Manufactured Products
Offshore Manufactured Products reported revenues of $107.3
million, operating income of $21.0 million and Adjusted Segment
EBITDA of $24.7 million in the fourth quarter of 2024, compared to
revenues of $102.2 million, operating income of $19.3 million and
Adjusted Segment EBITDA of $23.3 million reported in the third
quarter of 2024. Adjusted Segment EBITDA margin was 23% in both the
fourth and third quarter of 2024.
Backlog totaled $311 million as of December 31, 2024. Fourth
quarter bookings increased 1%, totaling $113 million, compared to
bookings of $112 million in the third quarter – yielding a
quarterly book-to-bill ratio of 1.1x.
Completion and Production
Services
Completion and Production Services reported revenues of $30.1
million, an operating loss of $4.0 million and Adjusted Segment
EBITDA of $3.5 million in the fourth quarter of 2024, compared to
revenues of $40.1 million, an operating loss of $18.3 million and
Adjusted Segment EBITDA of $5.4 million reported in the third
quarter of 2024. Adjusted Segment EBITDA margin was 12% in the
fourth quarter of 2024, compared to 13% in the third quarter of
2024.
During the third quarter of 2024, the segment implemented
restructuring actions in its U.S. land-based businesses to reduce
costs and improve future operating margins, which included the exit
of two underperforming service offerings and the closure of several
facilities leading to reductions in its U.S. workforce. The
segment’s U.S. land restructuring initiatives continued into the
fourth quarter of 2024 with additional facility closures. As a
result of these and other strategic actions previously taken, the
segment’s operating loss for the fourth quarter of 2024 included
$1.2 million of operating lease asset impairment charges and $1.9
million of costs associated with the exit of underperforming
service locations. Additionally, during the third and fourth
quarters of 2024, the segment recorded costs totaling $1.4 million
associated with the enforcement of certain patents related to its
proprietary technologies. These patent disputes were settled during
the fourth quarter.
The segment’s exited U.S. land-based businesses collectively
generated revenues of $1.3 million and operating losses of $3.7
million in the current quarter, which included operating lease
asset impairment charges of $1.2 million, facility closure and
other charges totaling $1.9 million as well as depreciation and
amortization expense of $1.0 million. During full-year 2024,
service offerings and facilities exited in 2024 collectively
generated revenues of $40.6 million and operating losses of $19.6
million, which included intangible and operating lease asset
impairment charges of $14.1 million, facility closure and other
charges totaling $7.0 million as well as depreciation and
amortization expense of $7.9 million.
Downhole Technologies
Downhole Technologies reported revenues of $27.3 million, an
operating loss of $4.0 million and Adjusted Segment EBITDA of $0.1
million in the fourth quarter of 2024, compared to revenues of
$32.0 million, an operating loss of $3.7 million and Adjusted
Segment EBITDA of $1.1 million in the third quarter of 2024.
During the third quarter of 2024, the segment implemented
actions to reduce costs and improve future operating margins, which
included the exit of an underperforming location as well as
reductions in its U.S. workforce. The segment’s operating loss in
the third quarter of 2024 included costs of $1.2 million associated
with an operating lease asset impairment, workforce reductions and
a customer bankruptcy.
Corporate
Corporate operating income in the fourth quarter of 2024 totaled
$5.5 million.
During the fourth quarter of 2024, the Company sold a previously
idled facility (held-for-sale) for net cash proceeds of $24.8
million, resulting in the recognition of a gain of $15.3 million,
which is included in operating income (loss) but excluded from
Adjusted EBITDA.
Interest Expense, Net
Net interest expense totaled $1.7 million in the fourth quarter
of 2024, which included $0.3 million of non-cash amortization of
deferred debt issuance costs.
Income Taxes
During the fourth quarter of 2024, the Company recognized tax
expense of $1.8 million on pre-tax income of $17.0 million, which
included unfavorable changes in valuation allowances recorded
against deferred tax assets and certain non-deductible expenses.
The Company recognized income tax expense of $2.2 million on a
pre-tax loss of $12.1 million in the third quarter of 2024, which
included unfavorable changes in valuation allowances recorded
against deferred tax assets and certain non-deductible
expenses.
Cash Flows
During the fourth quarter of 2024, cash flows provided by
operations totaled $18.2 million and cash flows provided by
investing activities totaled $11.1 million, yielding free cash
flows of $29.3 million during the quarter. Net debt (total debt
less cash and cash equivalents) was reduced by $19.4 million during
the quarter after repurchasing $9.1 million of common stock.
On October 24, 2024, the Company’s Board of Directors terminated
the Company’s existing share repurchase program and replaced it
with a new $50 million authorization which expires in October
2026.
Financial Condition
Cash on-hand totaled $65.4 million at December 31, 2024. No
borrowings were outstanding under the Company’s asset-based
revolving credit facility at December 31, 2024.
Conference Call
Information
The call is scheduled for February 21, 2025 at 9:00 a.m. Central
Standard 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, supply chain disruptions, the impact of changes in tariffs
and duties on imported materials and exported finished goods, 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, consolidation of
our customers, 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, 2023, 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)
Three Months Ended
Year Ended
December 31,
2024
September 30,
2024
December 31,
2023
December 31,
2024
December 31,
2023
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Revenues:
Products
$
98,859
$
100,798
$
123,444
$
402,565
$
418,550
Services
65,736
73,550
84,822
290,023
363,733
164,595
174,348
208,266
692,588
782,283
Costs and expenses:
Product costs
77,821
79,167
97,291
314,628
328,815
Service costs
47,807
57,422
66,405
221,573
278,073
Cost of revenues (exclusive of
depreciation and amortization expense presented below)
125,628
136,589
163,696
536,201
606,888
Selling, general and administrative
expense
23,386
22,754
22,400
95,009
94,185
Depreciation and amortization expense
12,180
13,635
14,569
54,708
60,778
Impairment of goodwill
—
—
—
10,000
—
Impairments of intangible assets
—
10,787
—
10,787
—
Impairments of operating lease assets
1,188
2,579
—
3,767
—
Other operating income, net
(16,271
)
(955
)
(229
)
(16,195
)
(2,732
)
146,111
185,389
200,436
694,277
759,119
Operating income (loss)
18,484
(11,041
)
7,830
(1,689
)
23,164
Interest expense, net
(1,745
)
(1,824
)
(1,811
)
(7,731
)
(8,189
)
Other income, net
257
731
177
1,568
849
Income (loss) before income taxes
16,996
(12,134
)
6,196
(7,852
)
15,824
Income tax provision
(1,832
)
(2,215
)
(233
)
(3,406
)
(2,933
)
Net income (loss)
$
15,164
$
(14,349
)
$
5,963
$
(11,258
)
$
12,891
Net income (loss) per share:
Basic
$
0.24
$
(0.23
)
$
0.09
$
(0.18
)
$
0.20
Diluted
0.24
(0.23
)
0.09
(0.18
)
0.20
Weighted average number of common shares
outstanding:
Basic
60,947
62,084
62,483
62,004
62,690
Diluted
61,392
62,084
63,004
62,004
63,152
OIL STATES INTERNATIONAL, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(In Thousands)
December 31, 2024
December 31, 2023
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
65,363
$
47,111
Accounts receivable, net
194,336
203,211
Inventories, net
214,836
202,027
Prepaid expenses and other current
assets
23,691
35,648
Total current assets
498,226
487,997
Property, plant, and equipment, net
266,871
280,389
Operating lease assets, net
19,537
21,970
Goodwill, net
69,709
79,867
Other intangible assets, net
125,862
153,010
Other noncurrent assets
24,903
23,253
Total assets
$
1,005,108
$
1,046,486
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Current portion of long-term debt
$
633
$
627
Accounts payable
57,708
67,546
Accrued liabilities
36,861
44,227
Current operating lease liabilities
7,284
6,880
Income taxes payable
2,818
1,233
Deferred revenue
52,399
36,757
Total current liabilities
157,703
157,270
Long-term debt
124,654
135,502
Long-term operating lease liabilities
17,989
18,346
Deferred income taxes
5,350
7,717
Other noncurrent liabilities
18,758
18,106
Total liabilities
324,454
336,941
Stockholders’ equity:
Common stock
786
772
Additional paid-in capital
1,137,949
1,129,240
Retained earnings
273,660
284,918
Accumulated other comprehensive loss
(79,532
)
(69,984
)
Treasury stock
(652,209
)
(635,401
)
Total stockholders’ equity
680,654
709,545
Total liabilities and stockholders’
equity
$
1,005,108
$
1,046,486
OIL STATES INTERNATIONAL, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In Thousands)
Year Ended December
31,
2024
2023
(Unaudited)
Cash flows from operating activities:
Net income (loss)
$
(11,258
)
$
12,891
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization expense
54,708
60,778
Impairment of goodwill
10,000
—
Impairments of intangible assets
10,787
—
Impairments of operating lease assets
3,767
—
Stock-based compensation expense
8,723
6,954
Amortization of deferred financing
costs
1,497
1,798
Deferred income tax provision
(benefit)
(2,356
)
226
Gains on disposals of assets
(18,333
)
(4,075
)
Gains on extinguishment of 4.75%
convertible senior notes
(515
)
—
Other, net
(452
)
(1,001
)
Changes in operating assets and
liabilities:
Accounts receivable
5,191
17,132
Inventories
(14,704
)
(19,793
)
Accounts payable and accrued
liabilities
(19,382
)
(11,743
)
Deferred revenue
15,642
(8,033
)
Other operating assets and liabilities,
net
2,579
1,441
Net cash flows provided by operating
activities
45,894
56,575
Cash flows from investing activities:
Capital expenditures
(37,508
)
(30,653
)
Proceeds from disposition of property and
equipment
5,594
5,253
Proceeds from disposition of assets held
for sale
35,070
—
Other, net
(454
)
(186
)
Net cash flows provided by (used in)
investing activities
2,702
(25,586
)
Cash flows from financing activities:
Revolving credit facility borrowings
22,739
35,816
Revolving credit facility repayments
(22,739
)
(35,816
)
Purchases of 4.75% convertible senior
notes
(10,846
)
—
Repayment of 1.50% convertible senior
notes
—
(17,315
)
Other debt and finance lease
repayments
(652
)
(457
)
Payment of financing costs
(1,178
)
(128
)
Purchases of treasury stock
(14,212
)
(6,867
)
Shares added to treasury stock as a result
of net share settlements due to vesting of stock awards
(2,596
)
(1,948
)
Net cash flows used in financing
activities
(29,484
)
(26,715
)
Effect of exchange rate changes on cash
and cash equivalents
(860
)
819
Net change in cash and cash
equivalents
18,252
5,093
Cash and cash equivalents, beginning of
period
47,111
42,018
Cash and cash equivalents, end of
period
$
65,363
$
47,111
Cash paid for:
Interest
$
7,439
$
7,867
Income taxes, net
3,847
1,263
OIL STATES INTERNATIONAL, INC.
AND SUBSIDIARIES
SEGMENT DATA
(In Thousands)
(Unaudited)
Three Months Ended
Year Ended
December 31, 2024
September 30, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Revenues(1):
Offshore Manufactured Products
Project-driven:
Products
$
61,814
$
58,164
$
82,839
$
232,867
$
235,080
Services
34,895
32,754
32,875
123,906
112,742
96,709
90,918
115,714
356,773
347,822
Military and other products
10,544
11,316
10,775
41,127
33,889
Total Offshore Manufactured Products
107,253
102,234
126,489
397,900
381,711
Completion and Production Services
30,090
40,099
51,208
163,902
242,633
Downhole Technologies
27,252
32,015
30,569
130,786
157,939
Total revenues
$
164,595
$
174,348
$
208,266
$
692,588
$
782,283
Operating income (loss)(1):
Offshore Manufactured Products(2)
$
21,009
$
19,310
$
24,167
$
65,279
$
56,289
Completion and Production Services(3)
(4,004
)
(18,267
)
(1,102
)
(23,225
)
13,881
Downhole Technologies(4)
(4,031
)
(3,653
)
(5,726
)
(20,904
)
(5,874
)
Corporate(5)
5,510
(8,431
)
(9,509
)
(22,839
)
(41,132
)
Total operating income (loss)
$
18,484
$
(11,041
)
$
7,830
$
(1,689
)
$
23,164
________________
(1)
In the first quarter 2024, certain
short-cycle, consumable product operations historically reported
within the Offshore Manufactured Products segment were integrated
into the Downhole Technologies segment. Historical 2023 segment
financial results were conformed with the revised segment
presentation. Additionally, following the sale of its remaining
U.S. land-based drilling rigs and the exit of the flowback and well
testing service offerings in the third quarter of 2024, the
Company’s Well Site Services segment name was changed to Completion
and Production Services.
(2)
Operating income for the three months
ended September 30, 2024 and the year ended December 31, 2024,
included facility consolidation charges of $0.4 million and $3.4
million respectively. Operating income for the three months ended
December 31, 2023 and the year ended December 31, 2023 included
facility consolidation charges of $0.8 million and $2.5 million,
respectively, associated with the consolidation and relocation of
certain manufacturing and service locations.
(3)
Operating loss for the three months ended
December 31, 2024 and September 30, 2024, and the year ended
December 31, 2024, included $3.0 million, $15.9 million and $21.5
million, respectively, in costs associated with consolidation and
exit of certain underperforming service offerings and locations.
Additionally, during the three months ended December 31, 2024 and
September 30, 2024, and the year ended December 31, 2024, the
segment incurred $0.1 million, $1.3 million and $2.8 million,
respectively, of costs associated with the defense of certain
patents related to proprietary technologies. Operating income
(loss) for the three months and the year ended December 31, 2023
included $0.6 million of costs associated with the defense of
certain patents related to proprietary technologies.
(4)
Operating loss for the three months ended
September 30, 2024 included $0.6 million in restructuring costs.
Operating loss for the year ended December 31, 2024 included a
non-cash goodwill impairment charge of $10.0 million, recognized in
connection with the 2024 segment realignment, and $0.6 million in
restructuring costs.
(5)
Operating income (loss) for the three
months and the year ended December 31, 2024 included a $15.3
million gain on sale of a previously idled facility.
OIL STATES INTERNATIONAL, INC.
AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO
NON-GAAP FINANCIAL INFORMATION
ADJUSTED EBITDA (A)
(In Thousands)
(Unaudited)
Three Months Ended
Year Ended
December 31,
2024
September 30,
2024
December 31,
2023
December 31,
2024
December 31,
2023
Net income (loss)
$
15,164
$
(14,349
)
$
5,963
$
(11,258
)
$
12,891
Interest expense, net
1,745
1,824
1,811
7,731
8,189
Income tax provision
1,832
2,215
233
3,406
2,933
Depreciation and amortization expense
12,180
13,635
14,569
54,708
60,778
Impairment of goodwill
—
—
—
10,000
—
Impairments of intangible assets
—
10,787
—
10,787
—
Impairments of operating lease assets
1,188
2,579
—
3,767
—
Facility consolidation/closure and other
charges
1,941
4,840
1,402
13,716
3,051
Gain on disposal of property held for
sale
(15,316
)
—
—
(15,316
)
—
Gains on extinguishment of 4.75%
convertible senior notes
—
—
—
(515
)
—
Adjusted EBITDA
$
18,734
$
21,531
$
23,978
$
77,026
$
87,842
________________
(A)
The term Adjusted EBITDA consists of net
income (loss) plus net interest expense, taxes, depreciation and
amortization expense, impairments of goodwill, intangible and
operating lease assets, and facility consolidation/closure and
other charges, less gains on the sale of a previously idled
property and extinguishment of 4.75% convertible senior notes
(“2026 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
Year Ended
December 31,
2024
September 30,
2024
December 31,
2023
December 31,
2024
December 31,
2023
Offshore Manufactured Products:
Operating income
$
21,009
$
19,310
$
24,167
$
65,279
$
56,289
Other income, net
105
8
44
134
358
Depreciation and amortization expense
3,634
3,631
3,802
15,205
16,357
Facility consolidation/closure and other
charges
—
354
825
3,364
2,474
Adjusted Segment EBITDA
$
24,748
$
23,303
$
28,838
$
83,982
$
75,478
Completion and Production
Services:
Operating income (loss)
$
(4,004
)
$
(18,267
)
$
(1,102
)
$
(23,225
)
$
13,881
Other income, net
152
723
133
919
491
Depreciation and amortization expense
4,268
5,749
6,295
22,143
25,318
Impairments of intangible assets
—
10,787
—
10,787
—
Impairments of operating lease assets
1,188
2,092
—
3,280
—
Facility consolidation/closure and other
charges
1,941
4,329
577
10,195
577
Adjusted Segment EBITDA
$
3,545
$
5,413
$
5,903
$
24,099
$
40,267
Downhole Technologies:
Operating loss
$
(4,031
)
$
(3,653
)
$
(5,726
)
$
(20,904
)
$
(5,874
)
Depreciation and amortization expense
4,162
4,121
4,306
16,808
18,467
Impairment of goodwill
—
—
—
10,000
—
Impairments of operating lease assets
—
487
—
487
—
Facility consolidation/closure and other
charges
—
123
—
123
—
Adjusted Segment EBITDA
$
131
$
1,078
$
(1,420
)
$
6,514
$
12,593
Corporate:
Operating income (loss)
$
5,510
$
(8,431
)
$
(9,509
)
$
(22,839
)
$
(41,132
)
Other income, net
—
—
—
515
—
Depreciation and amortization expense
116
134
166
552
636
Other charges
—
34
—
34
—
Gain on disposal of property held for
sale
(15,316
)
—
—
(15,316
)
—
Gains on extinguishment of 4.75%
convertible senior notes
—
—
—
(515
)
—
Adjusted Segment EBITDA
$
(9,690
)
$
(8,263
)
$
(9,343
)
$
(37,569
)
$
(40,496
)
________________
(B)
The term Adjusted Segment EBITDA consists
of operating income (loss) plus other income (expense),
depreciation and amortization expense, impairments of goodwill,
intangible and operating lease assets, and facility
consolidation/closure and other charges, less gains on the sale of
a previously idled property and extinguishment of 2026 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.
OIL STATES INTERNATIONAL, INC.
AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO
NON-GAAP FINANCIAL INFORMATION
ADJUSTED NET INCOME (LOSS),
EXCLUDING CHARGES AND CREDITS (C) AND
ADJUSTED NET INCOME (LOSS) PER
SHARE, EXCLUDING CHARGES AND CREDITS (D)
(In Thousands, Except Per Share
Amounts)
(Unaudited)
Three Months Ended
Year Ended
December 31,
2024
September 30,
2024
December 31,
2023
December 31,
2024
December 31,
2023
Net income (loss)
$
15,164
$
(14,349
)
$
5,963
$
(11,258
)
$
12,891
Impairment of goodwill
—
—
—
10,000
—
Impairments of intangible assets
—
10,787
—
10,787
—
Impairments of operating lease assets
1,188
2,579
—
3,767
—
Facility consolidation/closure and other
charges
1,941
4,840
1,402
13,716
3,051
Gain on disposal of property held for
sale
(15,316
)
—
—
(15,316
)
—
Gains on extinguishment of 4.75%
convertible senior notes
—
—
—
(515
)
—
Total adjustments, before taxes
(12,187
)
18,206
1,402
22,439
3,051
Tax provision (benefit)
2,560
(1,161
)
(294
)
(430
)
(640
)
Total adjustments, net of taxes
(9,627
)
17,045
1,108
22,009
2,411
Adjusted net income, excluding charges and
credits
$
5,537
$
2,696
$
7,071
$
10,751
$
15,302
Adjusted weighted average number of
diluted common shares outstanding (E)
61,392
62,412
63,004
62,376
63,152
Adjusted diluted net income per share,
excluding charges and credits (E)
$
0.09
$
0.04
$
0.11
$
0.17
$
0.24
________________
(C)
Adjusted net income, excluding charges and
credits consists of net income (loss) plus impairments of goodwill,
intangible and operating lease assets, and facility
consolidation/closure and other charges, less gains on the sale of
a previously idled property and extinguishment of the 2026 Notes.
Adjusted net income, excluding charges and credits is not a measure
of financial performance under GAAP and should not be considered in
isolation from or as a substitute for net income (loss) as prepared
in accordance with GAAP. The Company has included adjusted net
income, excluding charges and credits as a supplemental disclosure
because its management believes that adjusted net income, excluding
charges and credits provides investors a helpful measure for
comparing its operating performance with previous and subsequent
periods.
(D)
Adjusted net income per share, excluding
charges and credits is calculated as adjusted net income, excluding
charges and credits divided by the weighted average number of
common shares outstanding. Adjusted net income per share, excluding
charges and credits is not a measure of financial performance under
GAAP and should not be considered in isolation from or as a
substitute for net income (loss) per share as prepared in
accordance with GAAP. The Company has included adjusted net income
per share, excluding charges and credits as a supplemental
disclosure because its management believes that adjusted net income
per share, excluding charges and credits provides investors a
helpful measure for comparing its operating performance with
previous and subsequent periods.
(E)
The calculation of diluted adjusted
earnings per share for the three month period ended September 30,
2024 and the year ended December 31, 2024 included 328 thousand
shares and 372 thousand shares, respectively, issuable pursuant to
outstanding performance share units.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250221077278/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)
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