PR Newswire | Jul 28, 2021 05:02PM EDT

07/28 16:01 CDT

Oceaneering Reports Second Quarter 2021 Results HOUSTON, July 28, 2021

HOUSTON, July 28, 2021 /PRNewswire/ -- Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today reported net income of $6.2 million, or $0.06 per share, on revenue of $498 million for the three months ended June 30, 2021. Adjusted net income was $10.4 million, or $0.10 per share, reflecting the impact of $3.2 million of pre-tax adjustments associated with a loss on the sale of an asset and foreign exchange losses recognized during the quarter, and $1.6 million of discrete tax adjustments, primarily due to changes in valuation allowances.

During the prior quarter ended March 31, 2021, Oceaneering reported a net loss of $9.4 million, or $(0.09) per share, on revenue of $438 million. Adjusted net income was $2.8 million, or $0.03 per share, reflecting the impact of $3.2 million of pre-tax adjustments associated with restructuring and other expenses and foreign exchange losses recognized during the quarter, and $9.6 million of discrete tax adjustments.

Adjusted operating income (loss), operating margins, net income (loss) and earnings (loss) per share, EBITDA and adjusted EBITDA (as well as EBITDA and adjusted EBITDA margins), and free cash flow are non-GAAP measures that exclude the impacts of certain identified items. Reconciliations to the corresponding GAAP measures are shown in the tables Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS), EBITDA and Adjusted EBITDA and Margins, Free Cash Flow, 2021 Adjusted EBITDA Estimates, Adjusted Operating Income (Loss) and Margins by Segment, and EBITDA and Adjusted EBITDA and Margins by Segment. These tables are included below under the caption Reconciliations of Non-GAAP to GAAP Financial Information.

Summary of Results

(in thousands, except per share amounts)



Three Months Ended Six Months Ended

Jun 30, Mar 31, Jun 30,



2021 2020 2021 2021 2020



Revenue $498,199$427,216$437,553$935,752$963,884

Gross Margin 68,397 42,537 56,657 125,054 89,289

Income (Loss) from Operations 22,819 (5,182) 13,783 36,602 (385,939)

Net Income (Loss) 6,241 (24,788) (9,365) (3,124) (392,386)



Diluted Earnings (Loss) Per Share$0.06 $(0.25) $(0.09) $(0.03) $(3.96)



For the second quarter of 2021:

* Consolidated Adjusted EBITDA was $60.6 million * Consolidated Adjusted Operating Income was $24.2 million * Cash flow generated from operations was $50.5 million and free cash flow was $37.9 million * Cash position increased by $13.3 million, from $443 million to $456 million * We retired $30.5 million of our 2024 senior notes through open market repurchases

Roderick A. Larson, President and Chief Executive Officer of Oceaneering, stated, "Based on our first half financial performance and expectations for the second half of 2021, we are raising our adjusted EBITDA guidance to a range of $200 million to $225 million for the full year. This confidence, despite ongoing uncertainties associated with COVID-19, stems from positive client interactions, supportive oil price expectations, and growing backlog.

"Our second quarter 2021 results returned positive net income, and we produced adjusted EBITDA of $60.6 million, which exceeded consensus estimates. These positive results were attributable to the increased seasonal demand for our services and products in our energy businesses, growth in our government focused business segment, and forfeitures of long-term incentive accruals in Unallocated Expenses.

Segment Results:

"Sequentially, Subsea Robotics (SSR) revenue and adjusted operating income both increased as expected due to higher seasonal activity for ROV, survey, and tooling services. SSR adjusted EBITDA margin of 31% was relatively consistent with the first quarter of 2021, with pricing remaining stable across our SSR business lines.

"Second quarter 2021 ROV days on hire were sequentially higher for both drill support and vessel-based services as compared to first quarter 2021. Fleet utilization rose significantly, averaging 62% for the quarter, as compared to 53% for the first quarter. Our fleet use during the quarter was 58% in drill support and 42% in vessel-based activity, compared to 64% and 36%, respectively, during the first quarter. Second quarter 2021 average ROV revenue per day on hire of $8,056 was 2% higher than the first quarter of 2021.

"Manufactured Products (MP) second quarter 2021 adjusted operating income declined from the first quarter of 2021 on lower revenue. Sequentially, adjusted operating income margin decreased to 1% from 4% in the first quarter of 2021 as lower segment revenue decreased the ability to leverage our cost base. Our Manufactured Products backlog on June 30, 2021 was $315 million, compared to our March 31, 2021 backlog of $248 million. Our book-to-bill ratio was 1.3 for the six months ended June 30, 2021 and 0.8 for the trailing 12 months.

"The second quarter 2021 Offshore Projects Group (OPG) adjusted operating income declined as compared to the first quarter of 2021 despite a meaningful increase in revenue. Revenue benefited from ongoing field activities on several projects in Angola and a seasonal increase in intervention, maintenance and repair (IMR) work in the Gulf of Mexico. The sequential decline in adjusted operating income margin, from 10% in the first quarter of 2021 to 7% in the second quarter of 2021, was primarily due to unplanned downtime and related costs associated with the Angola riserless light well intervention project, which was partially offset by higher IMR activity levels in the Gulf of Mexico.

"Integrity Management and Digital Solutions (IMDS) sequential adjusted operating income was higher on a 19% increase in revenue. Higher seasonal activity and the start-up of several new projects contributed to the revenue increase. Continuing efficiency improvements, including utilization of field personnel, resulted in adjusted operating income margin increasing to 7% in the second quarter 2021 from 5% in the first quarter of 2021.

"Aerospace and Defense Technologies (ADTech) second quarter 2021 adjusted operating income improved from the first quarter of 2021 on a 20% increase in revenue. Adjusted operating income margin of 18% was better than forecast due to project mix and favorable rate-based adjustments. At the corporate level for the second quarter of 2021, adjusted Unallocated Expenses of $30.3 million were slightly lower as compared to the first quarter of 2021 due to lower expense accruals related to incentive-based compensation forfeitures.

Third Quarter Outlook:

"For the third quarter, compared to the second quarter, we anticipate relatively flat activity and operating profitability in our SSR, Manufactured Products, and IMDS segments, lower activity levels and relatively flat operating profitability in our OPG segment, and lower activity levels and lower operating profitability in our ADTech segment. Unallocated Expenses are forecast to be in the mid-$30 million range due primarily to increased information technology infrastructure costs and normalized accruals for incentive-based compensation. On a consolidated basis, we expect a sequential decline in third quarter 2021 results, with adjusted EBITDA in the range of $50 million to $55 million on slightly lower revenue.

Cash and Liquidity:

"Our cash balance of $456 million, coupled with improved debt markets and our expectation to generate meaningful free cash flow in 2021, will provide us with improved flexibility to address our 2024 debt maturity while we continue to leverage our technologies and core competencies into energy transition opportunities."

This release contains "forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as to the expectations, beliefs, future expected business and financial performance and prospects of Oceaneering. More specifically, the forward-looking statements in this press release include: the statements concerning Oceaneering's expectations about: full year 2021 adjusted EBITDA range and the bases for that range; characterization of demand or activity levels as seasonal; references to backlog, to the extent backlog may be an indicator of future revenue or profitability; anticipated third quarter segment activity levels and operating profitability as compared to second quarter 2021; forecasted Unallocated Expenses and the bases for that forecast; expectations about consolidated third quarter 2021 sequential results and revenue, and adjusted EBITDA range; characterization of debt markets and expectation to generate meaningful free cash flow in 2021; and the expectation of improved flexibility to address the 2024 debt maturity.

The forward-looking statements included in this release are based on our current expectations and are subject to certain risks, assumptions, trends and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements. Among the factors that could cause actual results to differ materially include: factors affecting the level of activity in the oil and gas industry, including worldwide demand for and prices of oil and natural gas, oil and natural gas production growth and the supply and demand of offshore drilling rigs; actions by members of OPEC and other oil exporting countries; decisions about offshore developments to be made by oil and gas exploration, development and production companies; the use of subsea completions and our ability to capture associated market share; general economic and business conditions and industry trends; the strength of the industry segments in which we are involved; the continuing effects of the COVID-19 pandemic and the governmental, customer, supplier, and other responses thereto; cancellations of contracts, change orders and other contractual modifications, force majeure declarations and the exercise of contractual suspension rights and the resulting adjustments to our backlog; collections from our customers; our future financial performance, including as a result of the availability, terms and deployment of capital; the consequences of significant changes in currency exchange rates; the volatility and uncertainties of credit markets; changes in tax laws, regulations and interpretation by taxing authorities; changes in, or our ability to comply with, other laws and governmental regulations, including those relating to the environment; the continued availability of qualified personnel; our ability to obtain raw materials and parts on a timely basis and, in some cases, from limited sources; operating risks normally incident to offshore exploration, development and production operations; hurricanes and other adverse weather and sea conditions; cost and time associated with drydocking of our vessels; the highly competitive nature of our businesses; adverse outcomes from legal or regulatory proceedings; the risks associated with integrating businesses we acquire; rapid technological changes; and social, political, military and economic situations in foreign countries where we do business and the possibilities of civil disturbances, war, other armed conflicts or terrorist attacks. For a more complete discussion of these and other risk factors, please see Oceaneering's latest annual report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements. Except to the extent required by applicable law, Oceaneering undertakes no obligation to update or revise any forward-looking statement.

Oceaneering is a global provider of engineered services and products, primarily to the offshore energy industry. Through the use of its applied technology expertise, Oceaneering also serves the defense, aerospace, and entertainment industries.

For more information on Oceaneering, please visit www.oceaneering.com.

Contact: Mark PetersonVice President, Corporate Development and Investor Relations Oceaneering International, Inc. 713-329-4507 investorrelations@oceaneering.com



OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES



CONDENSED CONSOLIDATED BALANCE SHEETS



Jun 30, 2021 Dec 31, 2020

(in thousands)

ASSETS

Current assets (including cash and cash equivalents of $456,087 and $452,016) $1,228,876 $1,170,263

Net property and equipment 537,909 591,107

Other assets 294,764 284,472

Total Assets $2,061,549 $2,045,842



LIABILITIES AND EQUITY

Current liabilities $479,523 $437,116

Long-term debt 773,423 805,251

Other long-term liabilities 245,871 245,318

Equity 562,732 558,157

Total Liabilities and Equity $2,061,549 $2,045,842



CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



For the Three Months Ended For the Six Months Ended

Jun 30, 2021 Jun 30, 2020 Mar 31, 2021 Jun 30, 2021 Jun 30, 2020

(in thousands, except per share amounts)



Revenue $498,199 $427,216 $ 437,553 $935,752 $963,884

Cost of services and products 429,802 384,679 380,896 810,698 874,595

Gross margin 68,397 42,537 56,657 125,054 89,289

Selling, general and administrative expense 45,578 47,719 42,874 88,452 103,460

Long-lived assets impairments - - - - 68,763

Goodwill impairment - - - - 303,005

Income (loss) from 22,819 (5,182) 13,783 36,602 (385,939) operations

Interest income 683 511 519 1,202 1,788

Interest expense, net of amounts capitalized (9,729) (11,611) (10,407) (20,136) (24,073)

Equity in income (losses) of unconsolidated affiliates378 674 534 912 1,871

Other income (expense), net (1,955) (3,660) (1,453) (3,408) (10,788)

Income (loss) before income taxes 12,196 (19,268) 2,976 15,172 (417,141)

Provision (benefit) for income taxes 5,955 5,520 12,341 18,296 (24,755)

Net Income (Loss) $6,241 $(24,788) $ (9,365) $(3,124) $(392,386)



Weighted average diluted shares outstanding 100,847 99,273 99,461 99,613 99,164

Diluted earnings (loss) per share $0.06 $(0.25) $ (0.09) $(0.03) $(3.96)



The above Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations should be read in conjunction with the Company's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q.

SEGMENT INFORMATION



For the Three Months Ended For the Six Months Ended

Jun 30, 2021 Jun 30, 2020 * Mar 31, 2021 Jun 30, 2021 Jun 30, 2020 *

($ in thousands)

Subsea Robotics

Revenue $141,371 $119,234 $119,119 $260,490 $259,004

Gross margin $31,767 $21,324 $24,078 $55,845 $40,797

Operating income (loss) $21,710 $11,662 $14,619 $36,329 $(82,421)

Operating income (loss) % 15 %10 %12 %14 %(32) %

ROV days available 22,750 22,750 22,469 45,219 45,500

ROV days utilized 14,005 13,501 11,887 25,892 28,354

ROV utilization 62 %59 %53 %57 %62 %



Manufactured Products

Revenue $79,127 $100,570 $86,825 $165,952 $267,104

Gross margin $8,391 $13,679 $10,004 $18,395 $31,628

Operating income (loss) $790 $3,865 $2,753 $3,543 $(62,273)

Operating income (loss) % 1 %4 %3 %2 %(23) %

Backlog at end of period $315,000 $380,000 $248,000 $315,000 $380,000



Offshore Projects Group

Revenue $107,951 $73,840 $89,234 $197,185 $148,094

Gross margin $14,566 $3,170 $15,111 $29,677 $5,265

Operating income (loss) $7,996 $(4,135) $8,813 $16,809 $(83,458)

Operating income (loss) % 7 %(6) %10 %9 %(56) %



Integrity Management & Digital Solutions

Revenue $64,070 $53,969 $54,048 $118,118 $118,698

Gross margin $10,462 $5,455 $8,209 $18,671 $15,247

Operating income (loss) $4,721 $(1,825) $2,474 $7,195 $(123,360)

Operating income (loss) % 7 %(3) %5 %6 %(104) %



Aerospace and Defense Technologies

Revenue $105,680 $79,603 $88,327 $194,007 $170,984

Gross margin $24,603 $17,313 $22,110 $46,713 $34,798

Operating income (loss) $19,340 $13,430 $16,839 $36,179 $26,401

Operating income (loss) % 18 %17 %19 %19 %15 %



Unallocated Expenses

Gross margin $(21,392) $(18,404) $(22,855) $(44,247) $(38,446)

Operating income (loss) $(31,738) $(28,179) $(31,715) $(63,453) $(60,828)



Total

Revenue $498,199 $427,216 $437,553 $935,752 $963,884

Gross margin $68,397 $42,537 $56,657 $125,054 $89,289

Operating income (loss) $22,819 $(5,182) $13,783 $36,602 $(385,939)

Operating income (loss) % 5 %(1) %3 %4 %(40) %



The above Segment Information does not include adjustments for non-recurring transactions. See the tables below under the caption "Reconciliations of Non-GAAP to GAAP Financial Information" for financial measures that our management considers in evaluating our ongoing operations.



* Recast to reflect segment changes.

SELECTED CASH FLOW INFORMATION



For the Three Months Ended For the Six Months Ended

Jun 30, 2021 Jun 30, 2020 Mar 31, 2021 Jun 30, 2021 Jun 30, 2020

(in thousands)



Capital Expenditures, including Acquisitions$12,629 $10,631 $10,699 $23,328 $37,860



For the Three Months Ended For the Six Months Ended

Jun 30, 2021 Jun 30, 2020 *Mar 31, 2021 Jun 30, 2021 Jun 30, 2020 *

(in thousands)

Depreciation and amortization:

Energy Services and Products

Subsea Robotics $22,436 $25,080 $22,952 $45,388 $164,267

Manufactured Products 3,248 3,587 3,227 6,475 19,551

Offshore Projects Group 6,862 8,255 7,125 13,987 83,162

Integrity Management & Digital Solutions 1,091 757 1,124 2,215 125,100

Total Energy Services and Products 33,637 37,679 34,428 68,065 392,080

Aerospace and Defense Technologies 1,404 658 1,276 2,680 1,345

Unallocated Expenses 184 361 767 951 1,469

Total Depreciation and Amortization $35,225 $38,698 $36,471 $71,696 $394,894



Goodwill and long-lived asset impairment expense, reflected in the depreciation and amortization expense above, was $310 million in the six months ended June 30, 2020.



* Recast to reflect segment changes.

RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION

In addition to financial results determined in accordance with U.S. generally accepted accounting principles ("GAAP"), this Press Release also includes non-GAAP financial measures (as defined under SEC Regulation G). We have included Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share, each of which excludes the effects of certain specified items, as set forth in the tables that follow. As a result, these amounts are non-GAAP financial measures. We believe these are useful measures for investors to review because they provide consistent measures of the underlying results of our ongoing business. Furthermore, our management uses these measures as measures of the performance of our operations. We have also included disclosures of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), EBITDA Margins, 2021 Adjusted EBITDA Estimates, and Free Cash Flow, as well as the following by segment: Adjusted Operating Income and Margins, EBITDA, EBITDA Margins, Adjusted EBITDA and Adjusted EBITDA Margins. We define EBITDA Margin as EBITDA divided by revenue. Adjusted EBITDA and Adjusted EBITDA Margins as well as Adjusted Operating Income and Margin and related information by segment exclude the effects of certain specified items, as set forth in the tables that follow. EBITDA and EBITDA Margins, Adjusted EBITDA and Adjusted EBITDA Margins, and Adjusted Operating Income and Margin and related information by segment are each non-GAAP financial measures. We define Free Cash Flow as cash flow provided by operating activities less organic capital expenditures (i.e., purchases of property and equipment other than those in business acquisitions). We have included these disclosures in this press release because EBITDA, EBITDA Margins and Free Cash Flow are widely used by investors for valuation and comparing our financial performance with the performance of other companies in our industry, and the adjusted amounts thereof (as well as Adjusted Operating Income and Margin by Segment) provide more consistent measures than the unadjusted amounts. Furthermore, our management uses these measures for purposes of evaluating our financial performance. Our presentation of EBITDA, EBITDA Margins and Free Cash Flow (and the Adjusted amounts thereof) may not be comparable to similarly titled measures other companies report. Non-GAAP financial measures should be viewed in addition to and not as substitutes for our reported operating results, cash flows or any other measure prepared and reported in accordance with GAAP. The tables that follow provide reconciliations of the non-GAAP measures used in this press release to the most directly comparable GAAP measures.

RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION

(continued)



Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS)



For the Three Months Ended

Jun 30, 2021 Jun 30, 2020 Mar 31, 2021

Net IncomeDiluted EPSNet Income Diluted EPSNet IncomeDiluted EPS (Loss) (Loss) (Loss)

(in thousands, except per share amounts)



Net income (loss) and diluted EPS as $6,241 $0.06 $(24,788)$ (0.25) $(9,365)$ (0.09) reported in accordance with GAAP

Pre-tax adjustments for the effects of:

Loss on sale of asset 1,415 - -

Restructuring expenses and other - 5,708 1,308

Foreign currency (gains) losses 1,800 3,908 1,861

Total pre-tax adjustments 3,215 9,616 3,169



Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate(674) (2,331) (605) in effect for respective periods

Discrete tax items:

Share-based compensation (4) 16 577

Uncertain tax positions 186 735 (16)

U.S. CARES Act - 1,159 -

Valuation allowances 3,525 3,245 6,758

Other (2,136) (1,887) 2,275

Total discrete tax adjustments 1,571 3,268 9,594

Total of adjustments 4,112 10,553 12,158

Adjusted Net Income (Loss) $10,353 $0.10 $(14,235)$ (0.14) $2,793 $ 0.03

Weighted average diluted shares outstanding utilized for Adjusted Net 100,847 99,273 100,480 Income (Loss)







Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS)



For the Six Months Ended

Jun 30, 2021 Jun 30, 2020

Net IncomeDiluted EPSNet Income Diluted EPS (Loss) (Loss)

(in thousands, except per share amounts)



Net income (loss) and diluted EPS as $(3,124)$ (0.03)$(392,386)$ (3.96)reported in accordance with GAAP

Pre-tax adjustments for the effects of:

Long-lived assets impairments - 68,763

Long-lived assets write-offs - 7,328

Goodwill impairment - 303,005

Loss on sale of asset 1,415 -

Restructuring expenses and other 1,308 12,338

Foreign currency (gains) losses 3,661 10,958

Total pre-tax adjustments 6,384 402,392



Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate(1,279) (47,686) in effect for respective periods

Discrete tax items:

Share-based compensation 573 1,003

Uncertain tax positions 170 (8,917)

U.S. CARES Act - (32,625)

Valuation allowances 10,283 68,453

Other 139 (937)

Total discrete tax adjustments 11,165 26,977

Total of adjustments 16,270 381,683

Adjusted Net Income (Loss) $13,146 $ 0.13 $(10,703) $ (0.11)

Weighted average diluted shares outstanding utilized for Adjusted Net 100,672 99,164 Income (Loss)



EBITDA and Adjusted EBITDA and Margins



For the Three Months Ended For the Six Months Ended

Jun 30, 2021Jun 30, 2020Mar 31, 2021Jun 30, 2021Jun 30, 2020

($ in thousands)



Net income (loss) $6,241 $(24,788) $(9,365) $(3,124) $(392,386)

Depreciation and amortization 35,225 38,698 36,471 71,696 394,894

Subtotal 41,466 13,910 27,106 68,572 2,508

Interest expense, net of interest income 9,046 11,100 9,888 18,934 22,285

Amortization included in interest expense907 333 303 1,210 -

Provision (benefit) for income taxes 5,955 5,520 12,341 18,296 (24,755)

EBITDA 57,374 30,863 49,638 107,012 38

Adjustments for the effects of:

Long-lived assets impairments - - - - 68,763

Loss on sale of asset 1,415 - - 1,415 -

Restructuring expenses and other - 5,708 1,308 1,308 12,338

Foreign currency (gains) losses 1,800 3,908 1,861 3,661 10,958

Total of adjustments 3,215 9,616 3,169 6,384 92,059

Adjusted EBITDA $60,589 $40,479 $52,807 $113,396 $92,097



Revenue $498,199 $427,216 $437,553 $935,752 $963,884



EBITDA margin % 12 %7 %11 %11 %- %

Adjusted EBITDA margin % 12 %9 %12 %12 %10 %





Free Cash Flow



For the Three Months Ended For the Six Months Ended

Jun 30, 2021Jun 30, 2020Mar 31, 2021Jun 30, 2021Jun 30, 2020

(in thousands)

Net Income (loss) $ 6,241 $ (24,788)$ (9,365) $(3,124) $(392,386)

Non-cash adjustments:

Depreciation and amortization, 35,225 38,698 36,471 71,696 394,894 including goodwill impairment

Long-lived asset impairments - - - - 68,763

Other non-cash (1,294) 41 (365) (1,659) (4,585)

Other increases (decreases) in cash from10,374 23,567 (28,464) (18,090) (61,318) operating activities

Cash flow provided by (used in) 50,546 37,518 (1,723) 48,823 5,368 operating activities

Purchases of property and equipment (12,629) (10,631) (10,699) (23,328) (37,860)

Free Cash Flow $ 37,917$ 26,887 $ (12,422)$25,495 $(32,492)







2021 Adjusted EBITDA Estimates



For the Three Months Ended

September 30, 2021

Low High

(in thousands)

Income (loss) before income taxes $4,000 $7,000

Depreciation and amortization 36,000 38,000

Subtotal 40,000 45,000

Interest expense, net of interest income 10,000 10,000

Adjusted EBITDA $50,000 $55,000



For the Year Ended

December 31, 2021

Low High

(in thousands)

Income (loss) before income taxes $15,000 $35,000

Depreciation and amortization 145,000 150,000

Subtotal 160,000 185,000

Interest expense, net of interest income 40,000 40,000

Adjusted EBITDA $200,000 $225,000





Adjusted Operating Income (Loss) and Margins by Segment



For the Three Months Ended June 30, 2021

SSR MP OPG IMDS ADTech UnallocatedTotal Expenses

($ in thousands)

Operating Income (Loss) as $21,710 $790 $7,996 $4,721 $19,340 $(31,738)$22,819 reported in accordance with GAAP

Adjustments for the effects of:

Loss on sale of asset - - - - - 1,415 1,415

Total of adjustments - - - - - 1,415 1,415



Adjusted Operating Income (Loss) $21,710 $790 $7,996 $4,721 $19,340 $(30,323)$24,234



Revenue $141,371 $79,127 $107,951 $64,070 $105,680 $498,199

Operating income (loss) % as 15 %1 %7 %7 %18 % 5 %reported in accordance with GAAP

Operating income (loss) % using 15 %1 %7 %7 %18 % 5 %adjusted amounts





For the Three Months Ended June 30, 2020 *

SSR MP OPG IMDS ADTech UnallocatedTotal Expenses

($ in thousands)

Operating Income (Loss) as $11,662 $3,865 $(4,135) $(1,825) $13,430 $(28,179)$(5,182) reported in accordance with GAAP

Adjustments for the effects of:

Restructuring expenses and other1,380 1,212 1,405 1,536 - 175 5,708

Total of adjustments 1,380 1,212 1,405 1,536 - 175 5,708



Adjusted Operating Income (Loss) $13,042 $5,077 $(2,730) $(289) $13,430 $(28,004)$526



Revenue $119,234 $100,570 $73,840 $53,969 $79,603 $427,216

Operating income (loss) % as 10 %4 %(6) %(3) %17 % (1) %reported in accordance with GAAP

Operating income (loss) % using 11 %5 %(4) %(1) %17 % - %adjusted amounts



* Recast to reflect segment changes.





For the Three Months Ended March 31, 2021

SSR MP OPG IMDS ADTech UnallocatedTotal Expenses

($ in thousands)

Operating Income (Loss) as $14,619 $2,753 $8,813 $2,474 $16,839 $(31,715)$13,783 reported in accordance with GAAP

Adjustments for the effects of:

Restructuring expenses and other395 537 149 217 10 - 1,308

Total of adjustments 395 537 149 217 10 - 1,308

Adjusted Operating Income (Loss) $15,014 $3,290 $8,962 $2,691 $16,849 $(31,715)$15,091



Revenue $119,119 $86,825 $89,234 $54,048 $88,327 $437,553

Operating income (loss) % as 12 %3 %10 %5 %19 % 3 %reported in accordance with GAAP

Operating income (loss) % using 13 %4 %10 %5 %19 % 3 %adjusted amounts





Adjusted Operating Income (Loss) and Margins by Segment



For the Six Months Ended June 30, 2021

SSR MP OPG IMDS ADTech UnallocatedTotal Expenses

($ in thousands)

Operating Income (Loss) as reported$36,329 $3,543 $16,809 $7,195 $36,179 $(63,453)$36,602 in accordance with GAAP

Adjustments for the effects of:

Loss on sale of asset - - - - - 1,415 1,415

Restructuring expenses and other395 537 149 217 10 - 1,308

Total of adjustments 395 537 149 217 10 1,415 2,723



Adjusted Operating Income (Loss) $36,724 $4,080 $16,958 $7,412 $36,189 $(62,038)$39,325



Revenue $260,490 $165,952 $197,185 $118,118 $194,007 $935,752

Operating income (loss) % as 14 %2 %9 %6 %19 % 4 %reported in accordance with GAAP

Operating income (loss) % using 14 %2 %9 %6 %19 % 4 %adjusted amounts



For the Six Months Ended June 30, 2020 *

SSR MP OPG IMDS ADTech UnallocatedTotal Expenses

($ in thousands)

Operating Income (Loss) as reported$(82,421) $(62,273) $(83,458) $(123,360) $26,401 $(60,828)$(385,939) in accordance with GAAP

Adjustments for the effects of:

Long-lived assets impairments - 61,074 7,522 167 - - 68,763

Long-lived assets write-offs 7,328 - - - - - 7,328

Goodwill impairment 102,118 11,388 66,285 123,214 - - 303,005

Restructuring expenses and other2,299 3,196 2,621 3,767 - 455 12,338

Total of adjustments 111,745 75,658 76,428 127,148 - 455 391,434



Adjusted Operating Income (Loss) $29,324 $13,385 $(7,030) $3,788 $26,401 $(60,373)$5,495



Revenue $259,004 $267,104 $148,094 $118,698 $170,984 $963,884

Operating income (loss) % as (32) %(23) %(56) %(104) %15 % (40) %reported in accordance with GAAP

Operating income (loss) % using 11 %5 %(5) %3 %15 % 1 %adjusted amounts



* Recast to reflect segment changes.



EBITDA and Adjusted EBITDA and Margins by Segment



For the Three Months Ended June 30, 2021

Unallocated SSR MP OPG IMDS ADTech Expenses Total and other

($ in thousands)

Operating Income (Loss) as $21,710 $790 $7,996 $4,721 $19,340 $(31,738)$22,819 reported in accordance with GAAP

Adjustments for the effects of:

Depreciation and amortization 22,436 3,248 6,862 1,091 1,404 184 35,225

Other pre-tax - - - - - (670) (670)

EBITDA 44,146 4,038 14,858 5,812 20,744 (32,224) 57,374

Adjustments for the effects of:

Loss on sale of asset - - - - - 1,415 1,415

Foreign currency (gains) losses - - - - - 1,800 1,800

Total of adjustments - - - - - 3,215 3,215

Adjusted EBITDA $44,146 $4,038 $14,858 $5,812 $20,744 $(29,009)$60,589



Revenue $141,371 $79,127 $107,951 $64,070 $105,680 $498,199

Operating income (loss) % as 15 %1 %7 %7 %18 % 5 %reported in accordance with GAAP

EBITDA Margin 31 %5 %14 %9 %20 % 12 %

Adjusted EBITDA Margin 31 %5 %14 %9 %20 % 12 %



For the Three Months Ended June 30, 2020 *

Unallocated SSR MP OPG IMDS ADTech Expenses Total and other

($ in thousands)

Operating Income (Loss) as $11,662 $3,865 $(4,135) $(1,825) $13,430 $(28,179)$(5,182) reported in accordance with GAAP

Adjustments for the effects of:

Depreciation and amortization 25,080 3,587 8,255 757 658 361 38,698

Other pre-tax - - - - - (2,653) (2,653)

EBITDA 36,742 7,452 4,120 (1,068) 14,088 (30,471) 30,863

Adjustments for the effects of:

Restructuring expenses and other1,380 1,212 1,405 1,536 - 175 5,708

Foreign currency (gains) losses - - - - - 3,908 3,908

Total of adjustments 1,380 1,212 1,405 1,536 - 4,083 9,616

Adjusted EBITDA $38,122 $8,664 $5,525 $468 $14,088 $(26,388)$40,479



Revenue $119,234 $100,570 $73,840 $53,969 $79,603 $427,216

Operating income (loss) % as 10 %4 %(6) %(3) %17 % (1) %reported in accordance with GAAP

EBITDA Margin 31 %7 %6 %(2) %18 % 7 %

Adjusted EBITDA Margin 32 %9 %7 %1 %18 % 9 %



* Recast to reflect segment changes.





For the Three Months Ended March 31, 2021

Unallocated SSR MP OPG IMDS ADTech Expenses Total and other

($ in thousands)

Operating Income (Loss) as $14,619 $2,753 $8,813 $2,474 $16,839 $(31,715)$13,783 reported in accordance with GAAP

Adjustments for the effects of:

Depreciation and amortization 22,952 3,227 7,125 1,124 1,276 767 36,471

Other pre-tax - - - - - (616) (616)

EBITDA 37,571 5,980 15,938 3,598 18,115 (31,564) 49,638

Adjustments for the effects of:

Restructuring expenses and other395 537 149 217 10 - 1,308

Foreign currency (gains) losses - - - - - 1,861 1,861

Total of adjustments 395 537 149 217 10 1,861 3,169

Adjusted EBITDA $37,966 $6,517 $16,087 $3,815 $18,125 $(29,703)$52,807



Revenue $119,119 $86,825 $89,234 $54,048 $88,327 $437,553

Operating income (loss) % as 12 %3 %10 %5 %19 % 3 %reported in accordance with GAAP

EBITDA Margin 32 %7 %18 %7 %21 % 11 %

Adjusted EBITDA Margin 32 %8 %18 %7 %21 % 12 %





EBITDA and Adjusted EBITDA and Margins by Segment



For the Six Months Ended June 30, 2021

Unallocated SSR MP OPG IMDS ADTech Expenses Total and other

($ in thousands)

Operating Income (Loss) as reported$36,329 $3,543 $16,809 $7,195 $36,179 $(63,453)$36,602 in accordance with GAAP

Adjustments for the effects of:

Depreciation and amortization 45,388 6,475 13,987 2,215 2,680 951 71,696

Other pre-tax - - - - - (1,286) (1,286)

EBITDA 81,717 10,018 30,796 9,410 38,859 (63,788) 107,012

Adjustments for the effects of:

Loss on sale of asset - - - - - 1,415 1,415

Restructuring expenses and other395 537 149 217 10 - 1,308

Foreign currency (gains) losses - - - - - 3,661 3,661

Total of adjustments 395 537 149 217 10 5,076 6,384

Adjusted EBITDA $82,112 $10,555 $30,945 $9,627 $38,869 $(58,712)$113,396



Revenue $260,490 $165,952 $197,185 $118,118 $194,007 $935,752

Operating income (loss) % as 14 %2 %9 %6 %19 % 4 %reported in accordance with GAAP

EBITDA Margin 31 %6 %16 %8 %20 % 11 %

Adjusted EBITDA Margin 32 %6 %16 %8 %20 % 12 %



For the Six Months Ended June 30, 2020 *

Unallocated SSR MP OPG IMDS ADTech Expenses Total and other

($ in thousands)

Operating Income (Loss) as reported$(82,421) $(62,273) $(83,458) $(123,360) $26,401 $(60,828)$(385,939) in accordance with GAAP

Adjustments for the effects of:

Depreciation and amortization 164,267 19,551 83,162 125,100 1,345 1,469 394,894

Other pre-tax - - - - - (8,917) (8,917)

EBITDA 81,846 (42,722) (296) 1,740 27,746 (68,276) 38

Adjustments for the effects of:

Long-lived assets impairments - 61,074 7,522 167 - - 68,763

Restructuring expenses and other2,299 3,196 2,621 3,767 - 455 12,338

Foreign currency (gains) losses - - - - - 10,958 10,958

Total of adjustments 2,299 64,270 10,143 3,934 - 11,413 92,059

Adjusted EBITDA $84,145 $21,548 $9,847 $5,674 $27,746 $(56,863)$92,097



Revenue $259,004 $267,104 $148,094 $118,698 $170,984 $963,884

Operating income (loss) % as (32) %(23) %(56) %(104) %15 % (40) %reported in accordance with GAAP

EBITDA Margin 32 %(16) %- %1 %16 % - %

Adjusted EBITDA Margin 32 %8 %7 %5 %16 % 10 %



* Recast to reflect segment changes.

View original content: https://www.prnewswire.com/news-releases/oceaneering-reports-second-quarter-2021-results-301343520.html

SOURCE Oceaneering International, Inc.