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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

__________________

FORM 8-K

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): February 29, 2024
____________________

Civeo Corporation
(Exact name of registrant as specified in its charter)

British Columbia, Canada1-3624698-1253716
(State or other jurisdiction
of incorporation or organization)
(Commission File
Number)
(I.R.S. Employer
Identification No.)
Three Allen Center
333 Clay Street,Suite 4980
Houston,Texas 77002
(Address and zip code of principal executive offices)

Registrant’s telephone number, including area code: (713) 510-2400


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading Symbol(s)
Name of Each Exchange on Which Registered
Common Shares, no par value
CVEO
New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). 


Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02. Results of Operations and Financial Condition.

    On February 29, 2024, Civeo Corporation (“Civeo”) issued a press release announcing its financial condition and results of operations as of and for the quarter and year ended December 31, 2023. A copy of the press release is furnished as Exhibit 99.1 to this report on Form 8-K, and is incorporated herein by reference. 

The information contained in this report and the exhibit hereto shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference into any filings made by Civeo under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

    (d)    Exhibits.
Exhibit
Number
Description of Document

99.1

104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)





SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: February 29, 2024
        
            CIVEO CORPORATION


                    By: /s/ Carolyn J. Stone ,
                    Name:    Carolyn J. Stone
Title:    Senior Vice President, Chief Financial Officer and Treasurer



Civeo Reports Fourth Quarter and Full Year 2023 Results
    
Highlights:
•Reported fourth quarter 2023 revenues of $170.8 million, net income of $23.0 million and operating cash flow of $40.0 million, with full year 2023 revenues of $700.8 million, net income of $30.2 million and operating cash flow of $96.6 million;

•Reported fourth quarter 2023 Adjusted EBITDA of $17.4 million and free cash flow of $39.2 million, with full year 2023 Adjusted EBITDA of $102.0 million and free cash flow of $81.7 million;

•Reduced total debt in the fourth quarter by $37.7 million to $65.6 million as of December 31, 2023;

•Initiated regular quarterly dividend in September 2023 and continued opportunistic share repurchases, resulting in the return of 23% of 2023 free cash flow to shareholders; and

•Completed the previously announced sale of McClelland Lake Lodge in January 2024, with additional potential associated revenue opportunities under consideration.

HOUSTON and CALGARY, February 29, 2024 (BUSINESS WIRE) -- Civeo Corporation (NYSE:CVEO) today reported financial and operating results for the fourth quarter and year ended December 31, 2023.

“We ended 2023 in a solid financial position. Our continued discipline in capital allocation and strong cash flow enabled us to reach our target leverage ratio and return capital to shareholders through continued share repurchases and the initiation of a quarterly dividend. We continued to deliver strong results in the fourth quarter with revenues, Adjusted EBITDA and free cash flow above expectations. In the fourth quarter, Australian Adjusted EBITDA increased 64% compared to the fourth quarter of 2022, driven by the third consecutive quarter of record billed rooms in our owned villages coupled with improved margins in our Australian integrated services business benefiting from our inflation mitigation efforts,” said Bradley J. Dodson, Civeo's President and Chief Executive Officer.

Mr. Dodson continued, "Additionally, we are excited to announce that the sale of McClelland Lake Lodge was completed earlier this year. The majority of the proceeds were received in the fourth quarter with the remainder received in January. We were awarded the transportation contract for the assets, which is currently in progress, and will continue to pursue opportunities related to this sale as well as other opportunities to redeploy underutilized assets.”
Mr. Dodson added, “Despite the wind-down of LNG-related activity in Canada, we entered 2024 with significant strength and flexibility. We will continue to execute on our capital allocation framework we announced in September that includes a quarterly dividend and opportunistic share repurchases while maintaining a prudent leverage ratio and investing in growth at attractive economics.”

Fourth Quarter 2023 Results
In the fourth quarter of 2023, Civeo generated revenues of $170.8 million and reported net income of $23.0 million, or $1.55 per diluted share. During the fourth quarter of 2023, Civeo produced operating cash flow of $40.0 million, Adjusted EBITDA of $17.4 million and free cash flow of $39.2 million.
By comparison, in the fourth quarter of 2022, Civeo generated revenues of $162.2 million and reported a net loss of $13.0 million, or $1.31 per diluted share. The loss resulted in part from $5.7 million in costs associated with impairments on assets in Australia and the U.S. During the fourth quarter of 2022, Civeo produced operating cash flow of $29.4 million, Adjusted EBITDA of $15.1 million and free cash flow of $25.8 million.
Overall, the increase in Adjusted EBITDA in the fourth quarter of 2023 compared to 2022 was primarily due to increased billed rooms at the Australian Bowen Basin villages and improved margins in the Australian integrated services business, partially offset by the expected wind-down of LNG-related Canadian mobile camp activity, including $5.6 million in mobile camp demobilization costs.


Full Year 2023 Results
For the full year 2023, the Company reported revenues of $700.8 million and net income of $30.2 million, or $2.01 per diluted share. Adjusted EBITDA for the full year 2023 was $102.0 million. This compared to revenues of $697.1 million and net income of $2.2 million, or $0.21 loss per diluted share, for the full year 2022. Adjusted EBITDA was $112.8 million in 2022. Results for the full year of 2023 reflect the impact of weakened Australian and Canadian dollars relative to the U.S. dollar, which decreased revenues and Adjusted EBITDA by $28.8 million and $5.7 million, respectively.

The decrease in Adjusted EBITDA in 2023 as compared to 2022 was largely driven by the wind-down of LNG-related activity in Canada and the impact of weakened Canadian and Australian dollars, partially offset by significant improvement across our Australian business.
Business Segment Results
(Unless otherwise noted, the following discussion compares the quarterly results for the fourth quarter of 2023 to the results for the fourth quarter of 2022.)
Canada
During the fourth quarter of 2023, the Canada segment generated revenues of $72.7 million, operating income of $15.6 million and Adjusted EBITDA of $3.4 million, compared to revenues of $88.0 million, operating loss of $6.1 million and Adjusted EBITDA of $11.8 million in the fourth quarter of 2022.
The Canadian segment experienced a 17% period-over-period decrease in revenues and a 72% decrease in Adjusted EBITDA driven by the wind-down of LNG-related mobile camp activity, including $5.6 million of mobile camp demobilization costs.

Australia
During the fourth quarter of 2023, the Australia segment generated revenues of $89.3 million, operating income of $13.2 million and Adjusted EBITDA of $21.5 million, compared to revenues of $73.1 million, operating loss of $2.7 million and Adjusted EBITDA of $13.1 million in the fourth quarter of 2022. Operating loss for the fourth quarter of 2022 includes asset impairment charges of $3.8 million.

The Australian segment experienced a 22% period-over-period increase in revenues and a 64% increase in Adjusted EBITDA driven by a 23% year-over-year increase in billed rooms, increased integrated services activity and improved margins.

Financial Condition and Capital Allocation
As of December 31, 2023, Civeo had total liquidity of approximately $136.4 million, consisting of $133.1 million available under its revolving credit facilities and $3.3 million of cash on hand.
Civeo’s total debt outstanding on December 31, 2023 was $65.6 million, a $37.7 million decrease from September 30, 2023 and a $66.5 million decrease from December 31, 2022.
Civeo reported a net leverage ratio of 0.6x as of December 31, 2023.
During 2023, Civeo invested $31.6 million in capital expenditures, up from $25.4 million during 2022. Capital expenditures in both periods were primarily related to maintenance spending on the Company’s lodges and villages. Capital expenditures in 2023 also included $10.0 million related to customer-funded infrastructure upgrades at three Australian villages.

The Company previously announced that its board of directors declared a quarterly cash dividend of $0.25 per
common share, payable on March 18, 2024 to shareholders of record as of close of business on February 26, 2024. For purposes of the Income Tax Act (Canada), the Company has designated this dividend to be an "eligible
dividend".

Full Year 2024 Guidance
For the full year of 2024, Civeo expects revenues of $625.0 million to $700.0 million, Adjusted EBITDA of $80.0 million to $90.0 million and capital expenditures of $30.0 million to $35.0 million.



Conference Call
Civeo will host a conference call to discuss its fourth quarter 2023 financial results today at 11:00 a.m. Eastern time. This call is being webcast and can be accessed at Civeo's website at www.civeo.com. Participants may also join the conference call by dialing (877) 423-9813 in the United States or (201) 689-8573 internationally and asking for the Civeo call or using the conference ID 13744459#. A replay will be available after the call by dialing (844) 512-2921 in the United States or (412) 317-6671 internationally and using the conference ID 13744459#.
About Civeo
Civeo Corporation is a leading provider of hospitality services with prominent market positions in the Canadian oil
sands and the Australian natural resource regions. Civeo offers comprehensive solutions for lodging hundreds or
thousands of workers with its long-term and temporary accommodations and provides food services, housekeeping,
facility management, laundry, water and wastewater treatment, power generation, communications systems,
security and logistics services. Civeo currently operates a total of 24 lodges and villages in Canada, Australia and
the U.S., with an aggregate of approximately 26,000 rooms. Civeo is publicly traded under the symbol CVEO on the
New York Stock Exchange. For more information, please visit Civeo's website at www.civeo.com.

Forward Looking Statements
This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts
and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements herein, including
the statements regarding Civeo’s future plans and outlook, strategic priorities, guidance, current trends,
expectations with respect to share repurchases and dividends, and liquidity needs, are based on then current
expectations and entail various risks and uncertainties that could cause actual results to differ materially from those
expressed or implied by these forward-looking statements. Such risks and uncertainties include, among other
things, risks associated with the general nature of the accommodations industry, risks associated with the level of
supply and demand for oil, coal, iron ore and other minerals, including the level of activity, spending and
developments in the Canadian oil sands, the level of demand for coal and other natural resources from, and
investments and opportunities in, Australia, and fluctuations or sharp declines in the current and future prices of oil,
natural gas, coal, iron ore and other minerals, risks associated with failure by our customers to reach positive final
investment decisions on, or otherwise not complete, projects with respect to which we have been awarded
contracts, which may cause those customers to terminate or postpone contracts, risks associated with currency
exchange rates, risks associated with inflation and volatility in the banking sector, risks associated with the
company’s ability to integrate any future acquisitions, risks associated with labor shortages, risks associated with the development of new projects, including whether such projects will continue in the future, risks associated with the trading price of the company’s common shares, availability and cost of capital, risks associated with general global economic conditions, geopolitical events, inflation, global weather conditions, natural disasters, global health
concerns, and security threats and changes to government and environmental regulations, including climate
change, and other factors discussed in the “Management’s Discussion and Analysis of Financial Condition and
Results of Operations” and “Risk Factors” sections of Civeo’s most recent annual report on Form 10-K and other
reports the company may file from time to time with the U.S. Securities and Exchange Commission. Each forward-looking statement contained herein speaks only as of the date of this release. Except as required by law, Civeo
expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a
result of new information, future events or otherwise.

Non-GAAP Financial Information

EBITDA, Adjusted EBITDA, free cash flow, net debt, bank-adjusted EBITDA and net leverage ratio are non-GAAP
financial measures. See “Non-GAAP Reconciliation” below for definitions and additional information concerning
non-GAAP financial measures, including a reconciliation of the non-GAAP financial information presented in this
press release to the most directly comparable financial information presented in accordance with GAAP. Non-GAAP
financial information supplements and should be read together with, and is not an alternative or substitute for, the
Company’s financial results reported in accordance with GAAP. Because non-GAAP financial information is not
standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP
financial measures.

- Financial Schedules Follow -


CIVEO CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended
December 31,		Twelve Months Ended
December 31,
2023202220232022
Revenues$170,799 $162,193 $700,805 $697,052 
Costs and expenses:
Cost of sales and services135,052 127,671 530,287 517,063 
Selling, general and administrative expenses19,720 19,390 72,605 69,962 
Depreciation and amortization expense15,865 21,396 75,142 87,214 
Impairment expense1,395 5,721 1,395 5,721 
Gain on sale of McClelland Lake Lodge assets, net(23,458)— (18,590)— 
Other operating expense177 261 479 74 
148,751 174,439 661,318 680,034 
Operating income (loss)22,048 (12,246)39,487 17,018 
Interest expense(2,552)(3,397)(13,177)(11,474)
Interest income46 24 172 39 
Other income10,845 859 13,881 5,149 
Income (loss) before income taxes30,387 (14,760)40,363 10,732 
Income tax benefit (provision)(7,736)2,689 (10,633)(4,402)
Net income (loss)22,651 (12,071)29,730 6,330 
Less: Net income (loss) attributable to noncontrolling interest(374)627 (427)2,333 
Net income (loss) attributable to Civeo Corporation23,025 (12,698)30,157 3,997 
Less: Dividends attributable to Class A preferred shares— 302 — 1,771 
Net income (loss) attributable to Civeo Corporation common shareholders$23,025 $(13,000)$30,157 $2,226 
Net income (loss) per share attributable to Civeo Corporation common shareholders:
Basic$1.57 $(1.31)$2.02 $(0.21)
Diluted$1.55 $(1.31)$2.01 $(0.21)
Weighted average number of common shares outstanding:
Basic14,687 13,835 14,906 14,002 
Diluted14,855 13,835 15,013 14,002 




CIVEO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

December 31, 2023December 31, 2022
(UNAUDITED)
Current assets:
Cash and cash equivalents$3,323 $7,954 
Accounts receivable, net143,222 119,755 
Inventories6,982 6,907 
Assets held for sale5,873 8,653 
Prepaid expenses and other current assets15,846 10,280 
Total current assets175,246 153,549 
Property, plant and equipment, net270,563 301,890 
Goodwill, net7,690 7,672 
Other intangible assets, net77,999 81,747 
Operating lease right-of-use assets12,286 15,722 
Other noncurrent assets4,278 5,604 
Total assets$548,062 $566,184 
Current liabilities:
Accounts payable$58,699 $51,087 
Accrued liabilities40,523 39,211 
Income taxes3,831 178 
Current portion of long-term debt— 28,448 
Deferred revenue4,849 991 
Other current liabilities6,334 8,342 
Total current liabilities114,236 128,257 
Long-term debt65,554 102,505 
Deferred income taxes11,803 4,778 
Operating lease liabilities9,264 12,771 
Other noncurrent liabilities24,167 14,172 
Total liabilities225,024 262,483 
Shareholders' equity:
Common shares— — 
Additional paid-in capital1,628,972 1,624,512 
Accumulated deficit(919,023)(930,123)
Treasury stock(9,063)(9,063)
Accumulated other comprehensive loss(380,715)(385,187)
Total Civeo Corporation shareholders' equity320,171 300,139 
Noncontrolling interest2,867 3,562 
Total shareholders' equity323,038 303,701 
Total liabilities and shareholders' equity$548,062 $566,184 




CIVEO CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Twelve Months Ended
December 31,
20232022
Cash flows from operating activities:
Net income$29,730 $6,330 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization75,142 87,214 
Impairment charges1,395 5,721 
Deferred income tax expense6,806 4,177 
Non-cash compensation charge4,460 3,787 
Gain on disposals of assets(21,196)(4,917)
Provision for loss on receivables, net of recoveries135 162 
Other, net1,660 3,223 
Changes in operating assets and liabilities:
Accounts receivable(22,311)(14,447)
Inventories5 (1,845)
Accounts payable and accrued liabilities7,438 12,323 
Taxes payable3,576 5 
Other current assets and liabilities, net9,725 (9,960)
Net cash flows provided by operating activities96,565 91,773 
Cash flows from investing activities:
Capital expenditures(31,633)(25,421)
Proceeds from disposition of property, plant and equipment16,740 16,286 
Other, net372 190 
Net cash flows used in investing activities(14,521)(8,945)
Cash flows from financing activities:
Term loan repayments(29,899)(30,442)
Revolving credit borrowings (repayments), net(37,846)(3,374)
Dividends paid(7,423)— 
Repurchases of common shares(11,634)(14,209)
Repurchases of preferred shares— (30,553)
Other, net— (1,078)
Net cash flows used in financing activities(86,802)(79,656)
Effect of exchange rate changes on cash127 (1,500)
Net change in cash and cash equivalents(4,631)1,672 
Cash and cash equivalents, beginning of period7,954 6,282 
Cash and cash equivalents, end of period$3,323 $7,954 



CIVEO CORPORATION
SEGMENT DATA
(in thousands)
(unaudited)

Three Months Ended
December 31,		Twelve Months Ended
December 31,
2023202220232022
Revenues
     Canada$72,728 $88,013 $352,795 $395,997 
     Australia89,345 73,098 336,763 278,252 
Other (2)8,726 1,082 11,247 22,803 
          Total revenues$170,799 $162,193 $700,805 $697,052 
EBITDA (1)
     Canada$36,519 $11,803 $86,502 $83,248 
     Australia21,469 9,286 74,069 57,118 
     Corporate, other and eliminations (2)(8,856)(11,707)(31,634)(33,318)
          Total EBITDA$49,132 $9,382 $128,937 $107,048 
Adjusted EBITDA (1)
     Canada$3,353 $11,803 $58,204 $83,248 
     Australia21,469 13,094 74,069 60,926 
Corporate, other and eliminations (2)(7,461)(9,794)(30,239)(31,405)
          Total adjusted EBITDA$17,361 $15,103 $102,034 $112,769 
Operating income (loss)
     Canada$15,569 $(6,058)$20,187 $17,023 
     Australia13,177 (2,715)36,317 14,731 
Corporate, other and eliminations (2)(6,698)(3,473)(17,017)(14,736)
          Total operating income (loss)$22,048 $(12,246)$39,487 $17,018 
(1) Please see Non-GAAP Reconciliation Schedule.
(2) Prior to the first quarter of 2023, we presented the U.S. operating segment as a separate reportable segment. Our operating segment in the U.S. no longer meets the reportable segment quantitative thresholds, and is included within the Other and Corporate, other and eliminations categories. Prior periods have been adjusted to conform to this presentation.




CIVEO CORPORATION
NON-GAAP RECONCILIATIONS
(in thousands)
(unaudited)

Three Months Ended
December 31,		Twelve Months Ended
December 31,
2023202220232022
EBITDA (1)$49,132 $9,382 $128,937 $107,048 
Adjusted EBITDA (1)$17,361 $15,103 $102,034 $112,769 
Free Cash Flow (2)$39,188 $25,757 $81,672 $82,638 
Net Leverage Ratio (3)0.6x

(1)The term EBITDA is a non-GAAP financial measure that is defined as net income (loss) attributable to Civeo Corporation
plus interest, taxes, depreciation and amortization. The term Adjusted EBITDA is a non-GAAP financial measure that is
defined as EBITDA adjusted to exclude certain other unusual or non-operating items. EBITDA and Adjusted EBITDA are not
measures of financial performance under generally accepted accounting principles and should not be considered in isolation
from or as a substitute for net income or cash flow measures prepared in accordance with generally accepted accounting
principles or as a measure of profitability or liquidity. Additionally, EBITDA and Adjusted EBITDA may not be comparable to
other similarly titled measures of other companies. Civeo has included EBITDA and Adjusted EBITDA as supplemental
disclosures because its management believes that EBITDA and Adjusted EBITDA provide useful information regarding its
ability to service debt and to fund capital expenditures and provide investors a helpful measure for comparing Civeo's
operating performance with the performance of other companies that have different financing and capital structures or tax
rates. Civeo uses EBITDA and Adjusted EBITDA to compare and to monitor the performance of its business segments to
other comparable public companies and as a benchmark for the award of incentive compensation under its annual incentive
compensation plan.

The following table sets forth a reconciliation of EBITDA and Adjusted EBITDA to net income (loss) attributable to Civeo Corporation, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles (in thousands) (unaudited):

Three Months Ended
December 31,		Twelve Months Ended
December 31,
2023202220232022
Net income (loss) attributable to Civeo Corporation$23,025 $(12,698)$30,157 $3,997 
Income tax provision (benefit)7,736 (2,689)10,633 4,402 
Depreciation and amortization15,865 21,396 75,142 87,214 
Interest income(46)(24)(172)(39)
Interest expense2,552 3,397 13,177 11,474 
     EBITDA$49,132 $9,382 $128,937 $107,048 
Adjustments to EBITDA
     Impairment of long-lived assets (a)1,395 5,721 1,395 5,721 
Net gain on disposition of McClelland Lake Lodge assets (b)
(33,166)— (28,298)— 
          Adjusted EBITDA$17,361 $15,103 $102,034 $112,769 

(a)Relates to asset impairments in the fourth quarter of 2023 and 2022. In the fourth quarter of 2023, we recorded a pre-tax loss related to the impairment of long-lived assets in the U.S. of $1.4 million. In the fourth quarter of 2022, we recorded a pre-tax loss related to the impairment of long-lived assets in our Australian segment of $3.8 million and a pre-tax loss related to the impairment of long-lived assets in the U.S. of $1.9 million.

(b)Relates to proceeds received and expenses incurred associated with the dismantlement and sale of the McClelland Lake Lodge. In the fourth quarter of 2023, we recorded gains associated with the sale of the McClelland Lake Lodge of $33.2 million, which are included in Gain on sale of McClelland Lake Lodge assets, net ($23.5 million) and Other


income ($9.7 million) on the unaudited statements of operations. In the third quarter of 2023, we recorded expenses associated with the sale of our McClelland Lake Lodge of $4.9 million, which are included in Gain on sale of McClelland Lake Lodge assets, net on the unaudited statements of operations.

(2)The term Free Cash Flow is a non-GAAP financial measure that is defined as net cash flows provided by operating activities
less capital expenditures plus proceeds from asset sales. Free Cash Flow is not a measure of financial performance under
generally accepted accounting principles and should not be considered in isolation from or as a substitute for cash flow
measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity.
Additionally, Free Cash Flow may not be comparable to other similarly titled measures of other companies. Civeo has
included Free Cash Flow as a supplemental disclosure because its management believes that Free Cash Flow provides
useful information regarding the cash flow generating ability of its business relative to its capital expenditure and debt
service obligations. Civeo uses Free Cash Flow to compare and to understand, manage, make operating decisions and
evaluate Civeo's business. It is also used as a benchmark for the award of incentive compensation under its annual
incentive compensation plan.

The following table sets forth a reconciliation of Free Cash Flow to Net Cash Flows Provided by Operating Activities, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles (in thousands) (unaudited):

Three Months Ended
December 31,		Twelve Months Ended
December 31,
2023202220232022
Net Cash Flows Provided by Operating Activities $39,972 $29,401 $96,565 $91,773 
     Capital expenditures (10,454)(7,955)(31,633)(25,421)
     Proceeds from disposition of property, plant and equipment 9,670 4,311 16,740 16,286 
     Free Cash Flow$39,188 $25,757 $81,672 $82,638 


(3)The term net leverage ratio is a non-GAAP financial measure that is defined as net debt divided by bank-adjusted EBITDA.
Net debt, bank-adjusted EBITDA and net leverage ratio are not financial measures under GAAP and should not be
considered in isolation from or as a substitute for total debt, net income (loss) or cash flow measures prepared in
accordance with GAAP or as a measure of profitability or liquidity. Additionally, net debt, bank-adjusted EBITDA and net
leverage ratio may not be comparable to other similarly titled measures of other companies. Civeo has included net debt,
bank-adjusted EBITDA and net leverage ratio as a supplemental disclosure because its management believes that this data
provides useful information regarding the level of the Company’s indebtedness and its ability to service debt. Additionally,
per Civeo’s credit agreement, the Company is required to maintain a net leverage ratio below 3.0x every quarter to remain in
compliance with the credit agreement.



The following table sets forth a reconciliation of net debt, bank-adjusted EBITDA and net leverage ratio to the most directly comparable measures of financial performance calculated under GAAP (in thousands) (unaudited):

As of December 31,
2023
Total debt$65,554 
Less: Cash and cash equivalents3,323 
Net debt$62,231 
Adjusted EBITDA for the twelve months ended December 31, 2023 (a)
$102,034 
Adjustments to Adjusted EBITDA
Stock-based compensation4,460 
Interest income172 
Incremental adjustments for McClelland Lake Lodge disposition (b)
3,330 
Bank-adjusted EBITDA$109,996 
Net leverage ratio (c)
0.6x
(a) See footnote 1 above for reconciliation of Adjusted EBITDA to net income (loss) attributable to Civeo Corporation.
(b) Related to incremental adjustments associated with the sale of the McClelland Lake Lodge assets as required by our credit facility.
(c) Calculated as net debt divided by bank-adjusted EBITDA.









CIVEO CORPORATION
NON-GAAP RECONCILIATIONS - GUIDANCE
(in millions)
(unaudited)

Year Ending
December 31, 2024
EBITDA Range (1)$86.0 $96.0 
Adjusted EBITDA Range (1)$80.0 $90.0 

(1)The following table sets forth a reconciliation of estimated EBITDA and Adjusted EBITDA to estimated net income (loss), which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles (in millions) (unaudited):

Year Ending
December 31, 2024
(estimated)
Net income (loss)$(6.0)$2.0 
Income tax provision12.0 14.0 
Depreciation and amortization72.0 72.0 
Interest expense8.0 8.0 
     EBITDA$86.0 $96.0 
Adjustments to EBITDA
Net gain on disposition of McClelland Lake Lodge assets (a)
(6.0)(6.0)
          Adjusted EBITDA$80.0 $90.0 

(a)Relates to proceeds received and expenses incurred associated with the dismantlement and sale of the McClelland Lake Lodge.



CIVEO CORPORATION
SUPPLEMENTAL QUARTERLY SEGMENT AND OPERATING DATA
(U.S. dollars in thousands, except for room counts and average daily rates)
(unaudited)

Three Months Ended
December 31,		Twelve Months Ended
December 31,
2023202220232022
Supplemental Operating Data - Canadian Segment
     Revenues
          Accommodation revenue (1)$58,926 $60,106 $266,926 $279,455 
          Mobile facility rental revenue (2)7,147 23,041 61,899 96,400 
          Food and other services revenue (3)6,655 4,866 23,970 20,142 
               Total Canadian revenues$72,728 $88,013 $352,795 $395,997 
Costs
Accommodation cost$45,251 $48,049 $195,843 $204,592 
Mobile facility rental cost11,337 15,116 49,073 60,055 
Food and other services cost6,120 4,590 21,821 18,372 
Indirect other cost2,637 2,728 10,330 10,557 
Total Canadian cost of sales and services$65,345 $70,483 $277,067 $293,576 
     Average daily rates (4)$95 $93 $97 $100 
     Billed rooms (5)617,325 621,991 2,710,784 2,759,521 
     Canadian dollar to U.S. dollar$0.734 $0.736 $0.741 $0.769 
Supplemental Operating Data - Australian Segment
          Accommodation revenue (1)$46,881 $37,747 $177,834 $152,714 
          Food and other services revenue (3)42,464 35,351 158,929 125,538 
               Total Australian revenues$89,345 $73,098 $336,763 $278,252 
Costs
Accommodation cost$21,791 $18,260 $85,461 $73,325 
Food and other services cost38,467 35,121 148,599 119,957 
Indirect other cost2,305 2,024 8,951 7,662 
Total Australian cost of sales and services$62,563 $55,405 $243,011 $200,944 
     Average daily rates (4)$74 $73 $75 $75 
     Billed rooms (5)637,759 518,925 2,371,763 2,024,068 
     Australian dollar to U.S. dollar$0.651 $0.657 $0.665 $0.695 

(1)Includes revenues related to lodge and village rooms and hospitality services for owned rooms for the periods presented.
(2)Includes revenues related to mobile camps for the periods presented.
(3)Includes revenues related to food service, laundry and water and wastewater treatment services, and facilities management for the periods presented.
(4)Average daily rate is based on billed rooms and accommodation revenue.
(5)Billed rooms represents total billed days for Civeo owned Canadian lodges and Australian villages for the periods presented.

CONTACT:

Carolyn J. Stone


Civeo Corporation
Senior Vice President & Chief Financial Officer
713-510-2400



v3.24.0.1
Cover
Feb. 29, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 29, 2024
Entity Registrant Name Civeo Corp
Entity Central Index Key 0001590584
Amendment Flag false
Entity Incorporation, State or Country Code A1
Entity File Number 1-36246
Entity Tax Identification Number 98-1253716
Entity Address, Address Line One Three Allen Center
Entity Address, Address Line Two 333 Clay Street,
Entity Address, Address Line Three Suite 4980
Entity Address, City or Town Houston,
Entity Address, State or Province TX
Entity Address, Postal Zip Code 77002
City Area Code 713
Local Phone Number 510-2400
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Shares, no par value
Trading Symbol CVEO
Security Exchange Name NYSE
Entity Emerging Growth Company false
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