HOUSTON--(BUSINESS WIRE)--Oil States International, Inc. (NYSE: OIS):
Three Months Ended |
% Change |
||||||||||||||||
(Unaudited, In Thousands, Except Per Share Amounts) |
September 30,
|
June 30,
|
September 30,
|
Sequential |
Year-over-Year |
||||||||||||
Consolidated results: |
|||||||||||||||||
Revenues |
$ |
169,764 |
$ |
156,659 |
$ |
165,180 |
8 |
% |
3 |
% |
|||||||
Operating income(2) |
6,335 |
11,712 |
4,748 |
(46 |
)% |
33 |
% |
||||||||||
Adjusted operating income, excluding charges and credits(1) |
11,849 |
10,615 |
8,308 |
12 |
% |
43 |
% |
||||||||||
Net income |
3,116 |
5,910 |
1,900 |
(47 |
)% |
64 |
% |
||||||||||
Adjusted net income, excluding charges and credits(1) |
8,485 |
8,407 |
4,717 |
1 |
% |
80 |
% |
||||||||||
Adjusted EBITDA(1) |
20,121 |
18,989 |
20,804 |
6 |
% |
(3 |
)% |
||||||||||
Revenues by segment: |
|||||||||||||||||
Offshore Manufactured Products |
$ |
104,384 |
$ |
92,724 |
$ |
108,627 |
13 |
% |
(4 |
)% |
|||||||
Completion and Production Services |
23,159 |
24,274 |
27,525 |
(5 |
)% |
(16 |
)% |
||||||||||
Downhole Technologies |
42,221 |
39,661 |
29,028 |
6 |
% |
45 |
% |
||||||||||
Revenues by destination: |
|||||||||||||||||
Offshore and international |
$ |
121,752 |
$ |
111,593 |
$ |
123,356 |
9 |
% |
(1 |
)% |
|||||||
U.S. land |
48,012 |
45,066 |
41,824 |
7 |
% |
15 |
% |
||||||||||
Operating income (loss) by segment(2): |
|||||||||||||||||
Offshore Manufactured Products |
$ |
14,795 |
$ |
13,936 |
$ |
17,603 |
6 |
% |
(16 |
)% |
|||||||
Completion and Production Services |
3,530 |
3,917 |
948 |
(10 |
)% |
n.m. |
|||||||||||
Downhole Technologies |
2,145 |
2,737 |
(4,667 |
) |
(22 |
)% |
n.m. |
||||||||||
Corporate |
(14,135 |
) |
(8,878 |
) |
(9,136 |
) |
(59 |
)% |
(55 |
)% |
|||||||
Adjusted Segment EBITDA(1): |
|||||||||||||||||
Offshore Manufactured Products |
$ |
18,751 |
$ |
17,907 |
$ |
22,275 |
5 |
% |
(16 |
)% |
|||||||
Completion and Production Services |
6,113 |
6,570 |
7,953 |
(7 |
)% |
(23 |
)% |
||||||||||
Downhole Technologies |
3,583 |
4,243 |
(689 |
) |
(16 |
)% |
n.m. |
||||||||||
Corporate |
(8,326 |
) |
(9,731 |
) |
(8,735 |
) |
14 |
% |
5 |
% |
|||||||
___________________ |
|
(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) |
Operating income (loss) for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025 included charges totaling $5.5 million, $3.1 million and $3.6 million, respectively. Additionally, operating income for the three months ended June 30, 2026 included credits totaling $4.1 million. See “Reconciliation of GAAP to Non-GAAP Financial Information” below for additional information. |
Oil States International, Inc. reported net income of $3.1 million, or $0.05 per share, and Adjusted EBITDA of $20.1 million for the third quarter of 2026 on revenues of $169.8 million. These results compare to revenues of $156.7 million, net income of $5.9 million, or $0.10 per share, and Adjusted EBITDA of $19.0 million reported in the second quarter of 2026.
Oil States’ President and Chief Executive Officer, Lloyd Hajdik, stated:
“Our third quarter results exceeded the guidance we provided back in July and reflect continued execution across our diversified portfolio and the resilience of our offshore and international operations. Revenues increased 8% sequentially, driven by strong demand within our Offshore Manufactured Products and Downhole Technologies segments. We generated Adjusted EBITDA of $20.1 million. Contract bookings in our Offshore Manufactured Products segment increased 18% sequentially to $135 million, resulting in a book-to-bill ratio of 1.3x and backlog reaching its highest level since December 2014.
“Looking ahead, we remain focused on expanding our backlog, delivering profitable growth and strong cash flows, and returning capital to stockholders through disciplined capital allocation. Backed by our global manufacturing, engineering and service capabilities, strong financial position and ongoing strategic initiatives, we believe Oil States is well positioned to benefit from a constructive multi-year offshore and international investment cycle. Our innovative, technologically advanced product and service offerings, combined with disciplined execution and selective growth investments, provide a strong foundation for sustainable long-term stockholder value creation.”
Business Segment Results
(See Segment Data and Adjusted Segment EBITDA tables below)
Offshore Manufactured Products
Offshore Manufactured Products reported revenues of $104.4 million, operating income of $14.8 million and Adjusted Segment EBITDA of $18.8 million in the third quarter of 2026, compared to revenues of $92.7 million, operating income of $13.9 million and Adjusted Segment EBITDA of $17.9 million reported in the second quarter of 2026. Adjusted Segment EBITDA margin was 18% in the third quarter of 2026, compared to 19% in the second quarter of 2026.
Backlog totaled $482 million as of September 30, 2026, its highest level since December 2014. Third quarter bookings totaled $135 million, yielding a quarterly book-to-bill ratio of 1.3x and raising the year-to-date ratio to 1.2x.
Completion and Production Services
Completion and Production Services reported revenues of $23.2 million, operating income of $3.5 million and Adjusted Segment EBITDA of $6.1 million in the third quarter of 2026, compared to revenues of $24.3 million, operating income of $3.9 million and Adjusted Segment EBITDA of $6.6 million reported in the second quarter of 2026. Adjusted Segment EBITDA margin was 26% in the third quarter of 2026, compared to 27% in the second quarter of 2026.
Downhole Technologies
Downhole Technologies reported revenues of $42.2 million, operating income of $2.1 million and Adjusted Segment EBITDA of $3.6 million in the third quarter of 2026, compared to revenues of $39.7 million, operating income of $2.7 million and Adjusted Segment EBITDA of $4.2 million in the second quarter of 2026. Adjusted Segment EBITDA margin was 8% in the third quarter of 2026, compared to 11% in the second quarter of 2026.
Corporate
Corporate reported an operating loss of $14.1 million and an Adjusted Segment EBITDA loss of $8.3 million in the third quarter of 2026, compared to an operating loss of $8.9 million and an Adjusted Segment EBITDA loss of $9.7 million in the second quarter of 2026.
Operating loss in the third quarter of 2026 included charges of $5.5 million associated primarily with the retirement of the Company’s former President and Chief Executive Officer and facility exit costs.
Interest Expense, Net
Net interest expense totaled $1.3 million in the third quarter of 2026, which included $0.6 million of non-cash amortization of deferred debt issuance costs – the majority of which was associated with the July 2026 expiration of $30 million in undrawn lender commitments under the Company’s term loan facility.
Income Taxes
During the third quarter of 2026, the Company recognized income tax expense of $2.1 million, which included the impact of changes in valuation allowances recorded against deferred tax assets, certain discrete tax items and other non-deductible expenses, on pre-tax income of $5.3 million.
Cash Flows
During the third quarter of 2026, the Company generated $5.3 million of cash flows in operations, tempered by net working capital investments of $9.6 million. Proceeds from the sale of assets totaled $5.1 million during the quarter, which were partially offset by $3.2 million in capital expenditures.
The Company purchased $4.0 million of its common stock in the third quarter of 2026 under a Board-approved program that expired on October 24, 2026. On October 29, 2026, the Company's Board of Directors approved a new $50.0 million stock repurchase plan, which extends through October 2028.
Financial Condition
At September 30, 2026, the Company had cash on-hand of $22.9 million. Borrowings and letters of credit outstanding under the Cash Flow Credit Agreement totaled $19.8 million and $17.0 million, respectively, leaving $58.0 million available to be drawn.
Conference Call Information
The call is scheduled for October 30, 2026 at 9:00 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 (833) 461-5787 in the United States or by dialing +1 (585) 542-9983 internationally and using the passcode 896 920 459. 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, military and industrial 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 and NYSE Texas 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 impact of geopolitical conflicts and tensions, changes in tariffs and duties on imported materials and exported finished goods, 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, the financial health of our customers, the actions of the Organization of Petroleum Exporting Countries (“OPEC”) and other producing nations (together with OPEC, “OPEC+”) with respect to crude oil production levels and pricing, supply chain disruptions, including as a result of natural disasters, industrial accidents, additional trade restrictions or the adoption of or increase in tariffs, or the threat thereof, 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, as amended by its Annual Report on Form 10-K/A, for the year ended December 31, 2025, 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,
|
June 30,
|
September 30,
|
September 30,
|
September 30,
|
|||||||||||||||
Revenues: |
|||||||||||||||||||
Products |
$ |
109,845 |
$ |
98,753 |
$ |
106,492 |
$ |
301,178 |
$ |
314,385 |
|||||||||
Services |
59,919 |
57,906 |
58,688 |
170,608 |
176,139 |
||||||||||||||
169,764 |
156,659 |
165,180 |
471,786 |
490,524 |
|||||||||||||||
Costs and expenses: |
|||||||||||||||||||
Product costs |
88,639 |
77,724 |
85,561 |
240,730 |
249,826 |
||||||||||||||
Service costs |
41,435 |
40,227 |
43,085 |
118,884 |
126,837 |
||||||||||||||
Cost of revenues (exclusive of depreciation and amortization expense presented below) |
130,074 |
117,951 |
128,646 |
359,614 |
376,663 |
||||||||||||||
Selling, general and administrative expense |
23,994 |
23,127 |
20,756 |
67,145 |
66,267 |
||||||||||||||
Depreciation and amortization expense |
8,046 |
8,061 |
12,128 |
24,296 |
36,051 |
||||||||||||||
Impairments of operating lease assets |
— |
— |
— |
— |
1,358 |
||||||||||||||
Impairments of assets held for sale |
— |
— |
— |
1,384 |
— |
||||||||||||||
Other operating (income) expense, net |
1,315 |
(4,192 |
) |
(1,098 |
) |
(2,978 |
) |
(5,479 |
) |
||||||||||
163,429 |
144,947 |
160,432 |
449,461 |
474,860 |
|||||||||||||||
Operating income |
6,335 |
11,712 |
4,748 |
22,325 |
15,664 |
||||||||||||||
Interest expense, net |
(1,308 |
) |
(508 |
) |
(1,773 |
) |
(2,991 |
) |
(5,043 |
) |
|||||||||
Other income (expense), net |
226 |
(3,281 |
) |
362 |
(2,907 |
) |
1,136 |
||||||||||||
Income before income taxes |
5,253 |
7,923 |
3,337 |
16,427 |
11,757 |
||||||||||||||
Income tax provision |
(2,137 |
) |
(2,013 |
) |
(1,437 |
) |
(6,293 |
) |
(3,888 |
) |
|||||||||
Net income |
$ |
3,116 |
$ |
5,910 |
$ |
1,900 |
$ |
10,134 |
$ |
7,869 |
|||||||||
Net income per share: |
|||||||||||||||||||
Basic |
$ |
0.05 |
$ |
0.10 |
$ |
0.03 |
$ |
0.17 |
$ |
0.13 |
|||||||||
Diluted |
0.05 |
0.10 |
0.03 |
0.17 |
0.13 |
||||||||||||||
Weighted average number of common shares outstanding: |
|||||||||||||||||||
Basic |
58,079 |
58,479 |
57,946 |
58,114 |
59,089 |
||||||||||||||
Diluted |
58,249 |
58,627 |
58,016 |
58,452 |
59,144 |
||||||||||||||
|
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands) |
|||||||
September 30, 2026 |
December 31, 2025 |
||||||
(Unaudited) |
|||||||
ASSETS |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
22,915 |
$ |
69,914 |
|||
Accounts receivable, net |
200,088 |
202,445 |
|||||
Inventories, net |
220,383 |
183,409 |
|||||
Assets held for sale |
14,439 |
17,350 |
|||||
Prepaid expenses and other current assets |
16,712 |
22,173 |
|||||
Total current assets |
474,537 |
495,291 |
|||||
Property, plant, and equipment, net |
228,840 |
244,382 |
|||||
Operating lease assets, net |
13,686 |
12,731 |
|||||
Goodwill, net |
70,312 |
70,524 |
|||||
Other intangible assets, net |
27,297 |
31,455 |
|||||
Other noncurrent assets |
29,931 |
29,048 |
|||||
Total assets |
$ |
844,603 |
$ |
883,431 |
|||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||
Current liabilities: |
|||||||
Current portion of long-term debt |
$ |
1,617 |
$ |
53,370 |
|||
Accounts payable |
70,429 |
68,090 |
|||||
Accrued liabilities |
36,992 |
38,480 |
|||||
Current operating lease liabilities |
5,931 |
7,286 |
|||||
Income taxes payable |
1,094 |
1,759 |
|||||
Deferred revenue |
84,777 |
97,195 |
|||||
Total current liabilities |
200,840 |
266,180 |
|||||
Long-term debt |
18,423 |
1,670 |
|||||
Long-term operating lease liabilities |
11,499 |
12,654 |
|||||
Deferred income taxes |
5,775 |
5,765 |
|||||
Other noncurrent liabilities |
24,485 |
23,971 |
|||||
Total liabilities |
261,022 |
310,240 |
|||||
Stockholders’ equity: |
|||||||
Common stock |
821 |
805 |
|||||
Additional paid-in capital |
1,160,054 |
1,145,642 |
|||||
Retained earnings |
174,417 |
164,283 |
|||||
Accumulated other comprehensive loss |
(67,379 |
) |
(66,264 |
) |
|||
Treasury stock |
(684,332 |
) |
(671,275 |
) |
|||
Total stockholders’ equity |
583,581 |
573,191 |
|||||
Total liabilities and stockholders’ equity |
$ |
844,603 |
$ |
883,431 |
|||
|
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) (Unaudited) |
|||||||
Nine Months Ended September 30, |
|||||||
2026 |
2025 |
||||||
Cash flows from operating activities: |
|||||||
Net income |
$ |
10,134 |
$ |
7,869 |
|||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|||||||
Depreciation and amortization expense |
24,296 |
36,051 |
|||||
Impairments of operating lease assets |
— |
1,358 |
|||||
Impairments of assets held for sale |
1,384 |
— |
|||||
Stock-based compensation expense |
8,552 |
5,756 |
|||||
Amortization of debt issuance costs |
1,528 |
1,235 |
|||||
Deferred income tax provision |
291 |
852 |
|||||
Gains on disposals of assets |
(5,757 |
) |
(5,455 |
) |
|||
Losses (gains) on extinguishment of 4.75% convertible senior notes |
3,594 |
(375 |
) |
||||
Other, net |
(2,686 |
) |
(2,192 |
) |
|||
Changes in operating assets and liabilities: |
|||||||
Accounts receivable |
1,295 |
(3,417 |
) |
||||
Inventories |
(37,539 |
) |
(5,287 |
) |
|||
Accounts payable and accrued liabilities |
(3,021 |
) |
2,692 |
||||
Deferred revenue |
(12,418 |
) |
20,801 |
||||
Other operating assets and liabilities, net |
7,503 |
(4,913 |
) |
||||
Net cash flows provided by (used in) operating activities |
(2,844 |
) |
54,975 |
||||
Cash flows from investing activities: |
|||||||
Capital expenditures |
(10,350 |
) |
(28,186 |
) |
|||
Proceeds from disposition of property and equipment |
855 |
5,416 |
|||||
Proceeds from disposition of assets held for sale |
12,210 |
8,409 |
|||||
Other, net |
(1,009 |
) |
(99 |
) |
|||
Net cash flows provided by (used in) investing activities |
1,706 |
(14,460 |
) |
||||
Cash flows from financing activities: |
|||||||
Borrowings under credit facilities |
94,268 |
512 |
|||||
Repayments of borrowings under credit facilities |
(74,518 |
) |
(512 |
) |
|||
Extinguishment of 4.75% convertible senior notes |
(50,452 |
) |
(20,269 |
) |
|||
Other debt and finance lease repayments, net |
(533 |
) |
(283 |
) |
|||
Payment of financing costs |
(2,014 |
) |
(188 |
) |
|||
Purchases of treasury stock |
(9,105 |
) |
(16,186 |
) |
|||
Shares added to treasury stock as a result of net share settlements due to vesting of stock awards |
(3,952 |
) |
(2,458 |
) |
|||
Net cash flows used in financing activities |
(46,306 |
) |
(39,384 |
) |
|||
Effect of exchange rate changes on cash and cash equivalents |
445 |
558 |
|||||
Net change in cash and cash equivalents |
(46,999 |
) |
1,689 |
||||
Cash and cash equivalents, beginning of period |
69,914 |
65,363 |
|||||
Cash and cash equivalents, end of period |
$ |
22,915 |
$ |
67,052 |
|||
Cash paid for: |
|||||||
Interest |
$ |
2,492 |
$ |
4,033 |
|||
Income taxes, net |
6,658 |
4,648 |
|||||
|
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES SEGMENT DATA (In Thousands) (Unaudited) |
|||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||
September 30,
|
June 30,
|
September 30,
|
September 30,
|
September 30,
|
|||||||||||||||
Revenues: |
|||||||||||||||||||
Offshore Manufactured Products |
|||||||||||||||||||
Project-driven: |
|||||||||||||||||||
Products |
$ |
57,725 |
$ |
51,954 |
$ |
67,729 |
$ |
161,566 |
$ |
195,506 |
|||||||||
Services |
34,594 |
32,420 |
30,172 |
97,724 |
82,503 |
||||||||||||||
92,319 |
84,374 |
97,901 |
259,290 |
278,009 |
|||||||||||||||
Military and other products |
12,065 |
8,350 |
10,726 |
29,237 |
29,800 |
||||||||||||||
Total Offshore Manufactured Products |
104,384 |
92,724 |
108,627 |
288,527 |
307,809 |
||||||||||||||
Completion and Production Services |
23,159 |
24,274 |
27,525 |
68,931 |
91,468 |
||||||||||||||
Downhole Technologies |
42,221 |
39,661 |
29,028 |
114,328 |
91,247 |
||||||||||||||
Total revenues |
$ |
169,764 |
$ |
156,659 |
$ |
165,180 |
$ |
471,786 |
$ |
490,524 |
|||||||||
Operating income (loss): |
|||||||||||||||||||
Offshore Manufactured Products |
$ |
14,795 |
$ |
13,936 |
$ |
17,603 |
$ |
43,143 |
$ |
48,868 |
|||||||||
Completion and Production Services |
3,530 |
3,917 |
948 |
10,937 |
6,328 |
||||||||||||||
Downhole Technologies |
2,145 |
2,737 |
(4,667 |
) |
4,437 |
(10,783 |
) |
||||||||||||
Corporate |
(14,135 |
) |
(8,878 |
) |
(9,136 |
) |
(36,192 |
) |
(28,749 |
) |
|||||||||
Total operating income (loss) |
$ |
6,335 |
$ |
11,712 |
$ |
4,748 |
$ |
22,325 |
$ |
15,664 |
|||||||||
Adjusted operating income (loss)(1): |
|||||||||||||||||||
Offshore Manufactured Products |
$ |
14,795 |
$ |
13,936 |
$ |
18,178 |
$ |
43,335 |
$ |
49,716 |
|||||||||
Completion and Production Services |
3,530 |
3,917 |
3,635 |
10,937 |
12,124 |
||||||||||||||
Downhole Technologies |
2,145 |
2,737 |
(4,667 |
) |
4,437 |
(9,576 |
) |
||||||||||||
Corporate |
(8,621 |
) |
(9,975 |
) |
(8,838 |
) |
(27,895 |
) |
(28,451 |
) |
|||||||||
Total adjusted operating income (loss) |
$ |
11,849 |
$ |
10,615 |
$ |
8,308 |
$ |
30,814 |
$ |
23,813 |
|||||||||
________________ |
|
(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 for further detail of charges and credits excluded from adjusted operating income (loss) in each of the periods presented. |
|
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL INFORMATION ADJUSTED OPERATING INCOME, EXCLUDING CHARGES AND CREDITS (A) (In Thousands) (Unaudited) |
|||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||
September 30,
|
June 30,
|
September 30,
|
September 30,
|
September 30,
|
|||||||||||||||
Operating income |
$ |
6,335 |
$ |
11,712 |
$ |
4,748 |
$ |
22,325 |
$ |
15,664 |
|||||||||
Impairments of: |
|||||||||||||||||||
Operating lease assets |
— |
— |
— |
— |
1,358 |
||||||||||||||
Assets held for sale |
— |
— |
— |
1,384 |
— |
||||||||||||||
Facility consolidation/closure and other charges |
2,176 |
1,395 |
3,560 |
6,259 |
6,791 |
||||||||||||||
Executive transition costs |
3,338 |
1,657 |
— |
4,995 |
— |
||||||||||||||
Gain on disposal of facility held for sale |
— |
(4,149 |
) |
— |
(4,149 |
) |
— |
||||||||||||
Adjusted operating income, excluding charges and credits |
$ |
11,849 |
$ |
10,615 |
$ |
8,308 |
$ |
30,814 |
$ |
23,813 |
|||||||||
________________ |
|
(A) |
Adjusted operating income, excluding charges and credits consists of operating income plus impairments of assets, facility consolidation/closure and other charges, and executive transition costs, less gain on disposal of facility held for sale. Adjusted operating 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 operating income as prepared in accordance with GAAP. The Company has included adjusted operating income, excluding charges and credits as a supplemental disclosure because its management believes that adjusted operating income, excluding charges and credits provides investors a helpful measure for comparing its operating performance with previous and subsequent periods. |
|
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL INFORMATION ADJUSTED SEGMENT OPERATING INCOME (LOSS), EXCLUDING CHARGES AND CREDITS (B) (In Thousands) (Unaudited) |
|||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||
September 30,
|
June 30,
|
September 30,
|
September 30,
|
September 30,
|
|||||||||||||||
Offshore Manufactured Products: |
|||||||||||||||||||
Operating income |
$ |
14,795 |
$ |
13,936 |
$ |
17,603 |
$ |
43,143 |
$ |
48,868 |
|||||||||
Facility consolidation/closure and other charges |
— |
— |
575 |
192 |
848 |
||||||||||||||
Adjusted Segment Operating Income, excluding charges and credits |
$ |
14,795 |
$ |
13,936 |
$ |
18,178 |
$ |
43,335 |
$ |
49,716 |
|||||||||
Completion and Production Services: |
|||||||||||||||||||
Operating income |
$ |
3,530 |
$ |
3,917 |
$ |
948 |
$ |
10,937 |
$ |
6,328 |
|||||||||
Impairments of operating lease assets |
— |
— |
— |
— |
403 |
||||||||||||||
Facility consolidation/closure and other charges |
— |
— |
2,687 |
— |
5,393 |
||||||||||||||
Adjusted Segment Operating Income, excluding charges and credits |
$ |
3,530 |
$ |
3,917 |
$ |
3,635 |
$ |
10,937 |
$ |
12,124 |
|||||||||
Downhole Technologies: |
|||||||||||||||||||
Operating income (loss) |
$ |
2,145 |
$ |
2,737 |
$ |
(4,667 |
) |
$ |
4,437 |
$ |
(10,783 |
) |
|||||||
Impairments of operating lease assets |
— |
— |
— |
— |
955 |
||||||||||||||
Facility consolidation/closure and other charges |
— |
— |
— |
— |
252 |
||||||||||||||
Adjusted Segment Operating Income (Loss), excluding charges and credits |
$ |
2,145 |
$ |
2,737 |
$ |
(4,667 |
) |
$ |
4,437 |
$ |
(9,576 |
) |
|||||||
Corporate: |
|||||||||||||||||||
Operating loss |
$ |
(14,135 |
) |
$ |
(8,878 |
) |
$ |
(9,136 |
) |
$ |
(36,192 |
) |
$ |
(28,749 |
) |
||||
Impairments of assets held for sale |
— |
— |
— |
1,384 |
— |
||||||||||||||
Facility consolidation/closure and other charges |
2,176 |
1,395 |
298 |
6,067 |
298 |
||||||||||||||
Executive transition costs |
3,338 |
1,657 |
— |
4,995 |
— |
||||||||||||||
Gain on disposal of facility held for sale |
— |
(4,149 |
) |
— |
(4,149 |
) |
— |
||||||||||||
Adjusted Segment Operating Loss, excluding charges and credits |
$ |
(8,621 |
) |
$ |
(9,975 |
) |
$ |
(8,838 |
) |
$ |
(27,895 |
) |
$ |
(28,451 |
) |
||||
________________ |
|
(B) |
Adjusted Segment Operating Income (Loss), excluding charges and credits consists of operating income (loss) plus impairments of assets, facility consolidation/closure and other charges, and executive transition costs, less gain on disposal of facility held for sale. Adjusted Segment Operating Income (Loss), 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 segment operating income (loss) as prepared in accordance with GAAP. The Company has included Adjusted Segment Operating Income (Loss), excluding charges and credits as a supplemental disclosure because its management believes that Adjusted Segment Operating Income (Loss), excluding charges and credits provides investors a helpful measure for comparing its operating performance with previous and subsequent periods. |
|
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL INFORMATION ADJUSTED EBITDA (C) (In Thousands) (Unaudited) |
|||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||
September 30,
|
June 30,
|
September 30,
|
September 30,
|
September 30,
|
|||||||||||||||
Net income |
$ |
3,116 |
$ |
5,910 |
$ |
1,900 |
$ |
10,134 |
$ |
7,869 |
|||||||||
Interest expense, net |
1,308 |
508 |
1,773 |
2,991 |
5,043 |
||||||||||||||
Income tax provision |
2,137 |
2,013 |
1,437 |
6,293 |
3,888 |
||||||||||||||
Depreciation and amortization expense |
8,046 |
8,061 |
12,128 |
24,296 |
36,051 |
||||||||||||||
Impairments of: |
|||||||||||||||||||
Operating lease assets |
— |
— |
— |
— |
1,358 |
||||||||||||||
Assets held for sale |
— |
— |
— |
1,384 |
— |
||||||||||||||
Facility consolidation/closure and other charges |
2,176 |
1,395 |
3,560 |
6,259 |
6,791 |
||||||||||||||
Executive transition costs |
3,338 |
1,657 |
— |
4,995 |
— |
||||||||||||||
Gain on disposal of facility held for sale |
— |
(4,149 |
) |
— |
(4,149 |
) |
— |
||||||||||||
Losses (gains) on extinguishment of 4.75% convertible senior notes |
— |
3,594 |
6 |
3,594 |
(375 |
) |
|||||||||||||
Adjusted EBITDA |
$ |
20,121 |
$ |
18,989 |
$ |
20,804 |
$ |
55,797 |
$ |
60,625 |
|||||||||
________________ |
|
(C) |
The term Adjusted EBITDA consists of net income plus net interest expense, taxes, depreciation and amortization expense, impairments of assets, facility consolidation/closure and other charges, executive transition costs and losses (gains) on extinguishment of Convertible Notes, less gain on disposal of facility held for sale. 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 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, 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 (D) (In Thousands) (Unaudited) |
|||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||
September 30,
|
June 30,
|
September 30,
|
September 30,
|
September 30,
|
|||||||||||||||
Offshore Manufactured Products: |
|||||||||||||||||||
Operating income |
$ |
14,795 |
$ |
13,936 |
$ |
17,603 |
$ |
43,143 |
$ |
48,868 |
|||||||||
Other income, net |
18 |
39 |
139 |
36 |
321 |
||||||||||||||
Depreciation and amortization expense |
3,938 |
3,932 |
3,958 |
11,810 |
11,269 |
||||||||||||||
Facility consolidation/closure and other charges |
— |
— |
575 |
192 |
848 |
||||||||||||||
Adjusted Segment EBITDA |
$ |
18,751 |
$ |
17,907 |
$ |
22,275 |
$ |
55,181 |
$ |
61,306 |
|||||||||
Completion and Production Services: |
|||||||||||||||||||
Operating income |
$ |
3,530 |
$ |
3,917 |
$ |
948 |
$ |
10,937 |
$ |
6,328 |
|||||||||
Other income, net |
182 |
219 |
229 |
530 |
440 |
||||||||||||||
Depreciation and amortization expense |
2,401 |
2,434 |
4,089 |
7,352 |
12,444 |
||||||||||||||
Impairments of operating lease assets |
— |
— |
— |
— |
403 |
||||||||||||||
Facility consolidation/closure and other charges |
— |
— |
2,687 |
— |
5,393 |
||||||||||||||
Adjusted Segment EBITDA |
$ |
6,113 |
$ |
6,570 |
$ |
7,953 |
$ |
18,819 |
$ |
25,008 |
|||||||||
Downhole Technologies: |
|||||||||||||||||||
Operating income (loss) |
$ |
2,145 |
$ |
2,737 |
$ |
(4,667 |
) |
$ |
4,437 |
$ |
(10,783 |
) |
|||||||
Depreciation and amortization expense |
1,438 |
1,506 |
3,978 |
4,483 |
12,012 |
||||||||||||||
Impairments of operating lease assets |
— |
— |
— |
— |
955 |
||||||||||||||
Facility consolidation/closure and other charges |
— |
— |
— |
— |
252 |
||||||||||||||
Adjusted Segment EBITDA |
$ |
3,583 |
$ |
4,243 |
$ |
(689 |
) |
$ |
8,920 |
$ |
2,436 |
||||||||
Corporate: |
|||||||||||||||||||
Operating loss |
$ |
(14,135 |
) |
$ |
(8,878 |
) |
$ |
(9,136 |
) |
$ |
(36,192 |
) |
$ |
(28,749 |
) |
||||
Other income (expense), net |
26 |
(3,539 |
) |
(6 |
) |
(3,473 |
) |
375 |
|||||||||||
Depreciation and amortization expense |
269 |
189 |
103 |
651 |
326 |
||||||||||||||
Impairments of assets held for sale |
— |
— |
— |
1,384 |
— |
||||||||||||||
Facility consolidation/closure and other charges |
2,176 |
1,395 |
298 |
6,067 |
298 |
||||||||||||||
Executive transition costs |
3,338 |
1,657 |
— |
4,995 |
— |
||||||||||||||
Gain on disposal of facility held for sale |
— |
(4,149 |
) |
— |
(4,149 |
) |
— |
||||||||||||
Losses (gains) on extinguishment of 4.75% convertible senior notes |
— |
3,594 |
6 |
3,594 |
(375 |
) |
|||||||||||||
Adjusted Segment EBITDA |
$ |
(8,326 |
) |
$ |
(9,731 |
) |
$ |
(8,735 |
) |
$ |
(27,123 |
) |
$ |
(28,125 |
) |
||||
________________ |
|
(D) |
The term Adjusted Segment EBITDA consists of operating income (loss) plus other income (expense), depreciation and amortization expense, impairments of assets and facility consolidation/closure and other charges, executive transition costs and losses (gains) on extinguishment of Convertible Notes, less gain on disposal of facility held for sale. 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, EXCLUDING CHARGES AND CREDITS (E) AND ADJUSTED NET INCOME PER SHARE, EXCLUDING CHARGES AND CREDITS (F) (In Thousands, Except Per Share Amounts) (Unaudited) |
|||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||
September 30,
|
June 30,
|
September 30,
|
September 30,
|
September 30,
|
|||||||||||||||
Net income |
$ |
3,116 |
$ |
5,910 |
$ |
1,900 |
$ |
10,134 |
$ |
7,869 |
|||||||||
Impairments of: |
|||||||||||||||||||
Operating lease assets |
— |
— |
— |
— |
1,358 |
||||||||||||||
Assets held for sale |
— |
— |
— |
1,384 |
— |
||||||||||||||
Facility consolidation/closure and other charges |
2,176 |
1,395 |
3,560 |
6,259 |
6,791 |
||||||||||||||
Executive transition costs |
3,338 |
1,657 |
— |
4,995 |
— |
||||||||||||||
Gain on disposal of facility held for sale |
— |
(4,149 |
) |
— |
(4,149 |
) |
— |
||||||||||||
Losses (gains) on extinguishment of 4.75% convertible senior notes |
— |
3,594 |
6 |
3,594 |
(375 |
) |
|||||||||||||
Total adjustments, before taxes |
5,514 |
2,497 |
3,566 |
12,083 |
7,774 |
||||||||||||||
Income tax benefit impact of adjustments, net |
(145 |
) |
— |
(749 |
) |
(145 |
) |
(1,633 |
) |
||||||||||
Total adjustments, net of taxes |
5,369 |
2,497 |
2,817 |
11,938 |
6,141 |
||||||||||||||
Adjusted net income, excluding charges and credits |
$ |
8,485 |
$ |
8,407 |
$ |
4,717 |
$ |
22,072 |
$ |
14,010 |
|||||||||
Adjusted weighted average number of diluted common shares outstanding |
58,249 |
58,627 |
58,016 |
58,452 |
59,144 |
||||||||||||||
Adjusted diluted net income per share, excluding charges and credits |
$ |
0.15 |
$ |
0.14 |
$ |
0.08 |
$ |
0.38 |
$ |
0.24 |
|||||||||
________________ |
|
(E) |
Adjusted net income, excluding charges and credits consists of net income plus impairments of assets and facility consolidation/closure and other charges, executive transition costs and losses (gains) on extinguishment of Convertible Notes, less gain on disposal of facility held for sale and the impact of these adjustments on income tax provision (benefit). 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 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. |
(F) |
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 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. |
|
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL INFORMATION FREE CASH FLOW (G) (In Thousands) (Unaudited) |
|||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||
September 30,
|
June 30,
|
September 30,
|
September 30,
|
September 30,
|
|||||||||||||||
Net cash flows provided by (used in) operating activities |
$ |
5,298 |
$ |
(6,257 |
) |
$ |
30,685 |
$ |
(2,844 |
) |
$ |
54,975 |
|||||||
Less: Capital expenditures |
(3,211 |
) |
(2,912 |
) |
(8,706 |
) |
(10,350 |
) |
(28,186 |
) |
|||||||||
Plus: Proceeds from disposition of property and equipment |
118 |
341 |
1,199 |
855 |
5,416 |
||||||||||||||
Proceeds from disposition of assets held for sale |
4,934 |
6,803 |
— |
12,210 |
8,409 |
||||||||||||||
Free cash flow |
$ |
7,139 |
$ |
(2,025 |
) |
$ |
23,178 |
$ |
(129 |
) |
$ |
40,614 |
|||||||
________________ |
|
(G) |
The term free cash flow consists of net cash flows provided by (used in) operating activities less capital expenditures plus proceeds from the disposition of property and equipment and assets held for sale. Free cash flow is not a measure of financial performance under GAAP and should not be considered in isolation from or as a substitute for cash flow measures prepared in accordance with GAAP. The table above sets forth reconciliations of free cash flow to net cash flows provided by (used in) operating activities, which is the most directly comparable measure of financial performance calculated under GAAP. |