- Net income of $1.3 million, or $0.02 per share, reported for
the quarter, which included charges and credits totaling $3.9
million ($3.1 million, after-tax, or $0.05 per share)
- Adjusted net income of $4.4 million, or $0.07 per share,
excluding charges and credits (a non-GAAP measure(1))
- Consolidated revenues of $186.4 million increased 11%
sequentially, driven primarily by the timing of conversion of
orders from backlog along with modest U.S. oil-focused completion
market share gains
- Adjusted EBITDA (a non-GAAP measure(1)) of $21.3 million
increased 38% sequentially
- Received cash proceeds of $10.3 million in connection with the
sale of a previously idled facility
- Purchased $11.5 million principal amount of our 4.75%
convertible senior notes at a discount and $2.4 million of our
common stock
Oil States International, Inc. (NYSE: OIS):
Three Months Ended
% Change
(Unaudited, In Thousands, Except Per Share
Amounts)
June 30, 2024
March 31, 2024
June 30, 2023
Sequential
Year-over-Year
Consolidated results:
Revenues
$
186,383
$
167,262
$
183,529
11%
2%
Operating income (loss)(3)
$
2,045
$
(11,177
)
$
3,269
n.m.
(37)%
Net income (loss)
$
1,301
$
(13,374
)
$
558
n.m.
133%
Adjusted net income (loss), excluding
charges and credits(1)
$
4,391
$
(1,873
)
$
558
n.m.
n.m.
Adjusted EBITDA(1)
$
21,306
$
15,455
$
19,016
38%
12%
Revenues by segment(2):
Offshore Manufactured Products
$
101,556
$
86,857
$
78,647
17%
29%
Well Site Services
46,421
47,292
64,536
(2)%
(28)%
Downhole Technologies
38,406
33,113
40,346
16%
(5 )%
Revenues by destination:
Offshore and international
$
118,625
$
100,180
$
89,817
18%
32%
U.S. land
67,758
67,082
93,712
1%
(28 )%
Operating income (loss) by
segment(2)(3):
Offshore Manufactured Products
$
14,357
$
10,603
$
8,838
35%
62 %
Well Site Services
(535
)
(419
)
4,732
(28)%
n.m.
Downhole Technologies
(1,141
)
(12,079
)
(121
)
91%
n.m.
Adjusted Segment EBITDA(1)(2):
Offshore Manufactured Products
$
20,131
$
15,800
$
12,994
27%
55%
Well Site Services
8,548
6,593
11,425
30%
(25)%
Downhole Technologies
3,114
2,191
4,626
42%
(33)%
___________________
(1)
These are non-GAAP measures. See
“Reconciliations of GAAP to Non-GAAP Financial Information” tables
below for reconciliations to their most comparable GAAP measures as
well as further clarification and explanation.
(2)
In first quarter 2024, certain
short-cycle, consumable product operations historically reported
within the Offshore Manufactured Products segment were integrated
into the Downhole Technologies segment. Historical segment
financial data, backlog and other information were conformed with
the revised segment presentation.
(3)
Operating income (loss) for the three
months ended June 30, 2024 included facility consolidation and
other charges totaling $4.4 million. Operating income (loss) for
the three months ended March 31, 2024 included goodwill impairment,
facility consolidation and other charges totaling $12.5 million.
See “Segment Data” below for additional information.
Oil States International, Inc. reported net income of $1.3
million, or $0.02 per share, and Adjusted EBITDA of $21.3 million
for the second quarter of 2024 on revenues of $186.4 million.
Reported second quarter 2024 net income included charges and
credits of $3.9 million ($3.1 million after-tax, or $0.05 per
share). These results compare to revenues of $167.3 million, a net
loss of $13.4 million, or $0.21 per share, and Adjusted EBITDA of
$15.5 million reported in the first quarter of 2024, which included
a non-cash goodwill impairment charge of $10.0 million ($9.5
million after-tax, or $0.15 per share) and facility consolidation
and other charges of $2.5 million ($2.0 million after-tax, or $0.03
per share).
Oil States’ President and Chief Executive Officer, Cindy B.
Taylor, stated:
“Our second quarter consolidated revenues and Adjusted EBITDA
increased 11% and 38% sequentially – driven by higher
project-related activity within our Offshore Manufactured Products
segment. Our U.S. land revenues in the current quarter reflect our
decision to exit a number of underperforming operations within our
Well Site Services segment in addition to a 3% sequential-quarter
decline in the average rig count.
In the second quarter, our Offshore Manufactured Products
segment revenues increased 17% sequentially totaling $102 million,
while Adjusted Segment EBITDA rose 27% to $20 million. Bookings
totaled $101 million during the quarter compared to $66 million
booked in the first quarter of 2024, yielding backlog of $300
million as of June 30 and a quarterly book-to-bill ratio of
1.0x.
“Revenues reported by our Well Site Services segment decreased
2% on a sequential quarter basis, given the impact of lower
activity and the segment’s exit of four underperforming locations
in the United States over the past six months. Adjusted Segment
EBITDA increased 30% from the first quarter of 2024 – reflective of
higher customer activity in the Gulf of Mexico and the Permian
Basin along with various cost reduction initiatives.
“Our Downhole Technologies segment revenues and Adjusted Segment
EBITDA increased 16% and 42%, respectively, from the first quarter
of 2024, driven primarily by increased completion product and
international perforating sales.
“We continue to focus on improving operations and allocating
capital to efficiently and safely provide our customers with
advanced technologies and services, while enhancing returns,
reducing debt and returning cash to our stockholders. Strong cash
flows from operations totaling $10 million allowed for convertible
debt and share repurchases in the quarter.”
Business Segment Results
In first quarter 2024, certain short-cycle, consumable product
operations historically reported within the Offshore Manufactured
Products segment (legacy frac plugs and elastomer products) were
integrated into our Downhole Technologies segment to better align
with the underlying activity demand drivers and current segment
management structure, as well as provide for additional operational
synergies. Historical segment financial data (GAAP and non-GAAP),
backlog and other information were conformed with the revised
segment presentation.
(See Segment Data and Adjusted Segment EBITDA tables below)
Offshore Manufactured Products
Offshore Manufactured Products reported revenues of $101.6
million, operating income of $14.4 million and Adjusted Segment
EBITDA of $20.1 million in the second quarter of 2024, compared to
revenues of $86.9 million, operating income of $10.6 million and
Adjusted Segment EBITDA of $15.8 million reported in the first
quarter of 2024. The segment recorded charges of $1.5 million in
both the second and first quarters of 2024, associated with the
ongoing consolidation of certain manufacturing and service
locations. Adjusted Segment EBITDA margin was 20% in the second
quarter of 2024 compared to 18% in the first quarter of 2024.
Backlog totaled $300 million as of June 30, 2024. Second quarter
bookings totaled $101 million, compared to bookings of $66 million
in the first quarter – yielding a quarterly book-to-bill ratio of
1.0x (year-to-date ratio of 0.9x).
Well Site Services
Well Site Services reported revenues of $46.4 million, an
operating loss of $0.5 million and Adjusted Segment EBITDA of $8.5
million in the second quarter of 2024, compared to revenues of
$47.3 million, an operating loss of $0.4 million and Adjusted
Segment EBITDA of $6.6 million reported in the first quarter of
2024. The segment recognized $1.9 million and $0.7 million in costs
associated with the consolidation and exit of underperforming
locations during the second and first quarters of 2024.
Additionally, during the second and first quarters of 2024, the
segment recorded costs of $1.0 million and $0.4 million,
respectively, associated with the defense of certain patents
related to its proprietary technologies. Adjusted Segment EBITDA
margin was 18% in the second quarter of 2024, compared to 14% in
the first quarter of 2024.
Downhole Technologies
Downhole Technologies reported revenues of $38.4 million, an
operating loss of $1.1 million and Adjusted Segment EBITDA of $3.1
million in the second quarter of 2024, compared to revenues of
$33.1 million, an operating loss of $12.1 million and Adjusted
Segment EBITDA of $2.2 million in the first quarter of 2024.
Reported results in the first quarter of 2024 included a non-cash
goodwill impairment charge of $10.0 million, recorded in connection
with the segment realignment discussed above.
Corporate
Corporate operating expenses in the second quarter of 2024
totaled $10.6 million.
Interest Expense, Net
Net interest expense totaled $2.1 million in the second quarter
of 2024, which included $0.3 million of non-cash amortization of
deferred debt issuance costs.
Income Taxes
During the second quarter of 2024, the Company recognized tax
benefit of $0.7 million on pre-tax income of $0.6 million, which
included favorable changes in valuation allowances recorded against
deferred tax assets and certain non-deductible expenses. The
Company recognized tax expense of $24 thousand on a pre-tax loss of
$13.4 million in the first quarter of 2024, which included a $7.7
million non-deductible goodwill impairment charge as well as other
non-deductible expenses.
Cash Flows
During the second quarter of 2024, cash flows provided by
operations totaled $10.2 million and capital expenditures totaled
$5.8 million. The Company sold an idle facility and certain other
equipment for proceeds totaling $10.5 million in the quarter.
The Company purchased $11.5 million principal amount of its
4.75% convertible senior notes at 94% of par and $2.4 million (543
thousand shares) of its common stock in the second quarter. A total
of $15.8 million remains available under the Company’s share
repurchase authorization, which extends through February 2025.
Financial Condition
Cash on-hand totaled $25.2 million at June 30, 2024. No
borrowings were outstanding under the Company’s asset-based
revolving credit facility at June 30, 2024.
Conference Call
Information
The call is scheduled for July 29, 2024 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 (888) 210-3346 in the
United States or by dialing +1 (646) 960-0253 internationally and
using the passcode 7534957. A replay of the conference call will be
available approximately two hours after the completion of the call
and can be accessed from the Company’s website at
www.ir.oilstatesintl.com.
About Oil States
Oil States International, Inc. is a global provider of
manufactured products and services to customers in the energy,
industrial and military sectors. The Company’s manufactured
products include highly engineered capital equipment and consumable
products. Oil States is headquartered in Houston, Texas with
manufacturing and service facilities strategically located across
the globe. Oil States is publicly traded on the New York Stock
Exchange under the symbol “OIS”.
For more information on the Company, please visit Oil States
International’s website at www.oilstatesintl.com.
Cautionary Language Concerning Forward
Looking Statements
The foregoing contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Forward-looking
statements are those that do not state historical facts and are,
therefore, inherently subject to risks and uncertainties. The
forward-looking statements included herein are based on current
expectations and entail various risks and uncertainties that could
cause actual results to differ materially from those
forward-looking statements. Such risks and uncertainties include,
among others, the level of supply and demand for oil and natural
gas, fluctuations in the current and future prices of oil and
natural gas, the level of exploration, drilling and completion
activity, general global economic conditions, the cyclical nature
of the oil and natural gas industry, geopolitical conflicts and
tensions, the financial health of our customers, the actions of the
Organization of Petroleum Exporting Countries (“OPEC”) and other
producing nations with respect to crude oil production levels and
pricing, the impact of environmental matters, including executive
actions and regulatory efforts to adopt environmental or climate
change regulations that may result in increased operating costs or
reduced oil and natural gas production or demand globally,
consolidation of our customers, our ability to access and the cost
of capital in the bank and capital markets, our ability to develop
new competitive technologies and products, and other factors
discussed in the “Business” and “Risk Factors” sections of the
Company’s Annual Report on Form 10-K for the year ended December
31, 2023, and the subsequently filed Quarterly Report 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
Six Months Ended
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Revenues:
Products
$
108,579
$
94,329
$
92,630
$
202,908
$
192,470
Services
77,804
72,933
90,899
150,737
187,258
186,383
167,262
183,529
353,645
379,728
Costs and expenses:
Product costs
82,503
75,137
72,659
157,640
151,336
Service costs
59,530
56,814
69,371
116,344
141,429
Cost of revenues (exclusive of
depreciation and amortization expense presented below)
142,033
131,951
142,030
273,984
292,765
Selling, general and administrative
expense
26,373
22,496
23,528
48,869
47,544
Depreciation and amortization expense
14,698
14,195
15,537
28,893
30,793
Impairment of goodwill
—
10,000
—
10,000
—
Other operating (income) expense, net
1,234
(203
)
(835
)
1,031
(518
)
184,338
178,439
180,260
362,777
370,584
Operating income (loss)
2,045
(11,177
)
3,269
(9,132
)
9,144
Interest expense, net
(2,061
)
(2,101
)
(2,059
)
(4,162
)
(4,450
)
Other income (expense), net
652
(72
)
210
580
486
Income (loss) before income taxes
636
(13,350
)
1,420
(12,714
)
5,180
Income tax benefit (provision)
665
(24
)
(862
)
641
(2,464
)
Net income (loss)
$
1,301
$
(13,374
)
$
558
$
(12,073
)
$
2,716
Net income (loss) per share:
Basic
$
0.02
$
(0.21
)
$
0.01
$
(0.19
)
$
0.04
Diluted
0.02
(0.21
)
0.01
(0.19
)
0.04
Weighted average number of common shares
outstanding:
Basic
62,483
62,503
62,803
62,493
62,814
Diluted
62,704
62,503
63,174
62,493
63,161
OIL STATES INTERNATIONAL, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(In Thousands)
June 30, 2024
December 31, 2023
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
25,188
$
47,111
Accounts receivable, net
203,694
203,211
Inventories, net
217,347
202,027
Prepaid expenses and other current
assets
22,587
35,648
Total current assets
468,816
487,997
Property, plant, and equipment, net
270,878
280,389
Operating lease assets, net
22,825
21,970
Goodwill, net
69,789
79,867
Other intangible assets, net
144,505
153,010
Other noncurrent assets
24,365
23,253
Total assets
$
1,001,178
$
1,046,486
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Current portion of long-term debt
$
616
$
627
Accounts payable
62,322
67,546
Accrued liabilities
38,493
44,227
Current operating lease liabilities
6,711
6,880
Income taxes payable
1,184
1,233
Deferred revenue
34,404
36,757
Total current liabilities
143,730
157,270
Long-term debt
124,339
135,502
Long-term operating lease liabilities
18,864
18,346
Deferred income taxes
5,657
7,717
Other noncurrent liabilities
18,199
18,106
Total liabilities
310,789
336,941
Stockholders’ equity:
Common stock
786
772
Additional paid-in capital
1,133,282
1,129,240
Retained earnings
272,845
284,918
Accumulated other comprehensive loss
(76,162
)
(69,984
)
Treasury stock
(640,362
)
(635,401
)
Total stockholders’ equity
690,389
709,545
Total liabilities and stockholders’
equity
$
1,001,178
$
1,046,486
OIL STATES INTERNATIONAL, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In Thousands)
(Unaudited)
Six Months Ended June
30,
2024
2023
Cash flows from operating activities:
Net income (loss)
$
(12,073
)
$
2,716
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization expense
28,893
30,793
Impairment of goodwill
10,000
—
Stock-based compensation expense
4,056
3,361
Amortization of deferred financing
costs
841
892
Deferred income tax provision
(benefit)
(2,299
)
997
Gains on disposals of assets
(1,355
)
(561
)
Gains on extinguishment of 4.75%
convertible senior notes
(515
)
—
Other, net
(379
)
(267
)
Changes in operating assets and
liabilities:
Accounts receivable
(2,335
)
39,042
Inventories
(16,436
)
(21,197
)
Accounts payable and accrued
liabilities
(9,504
)
(25,924
)
Deferred revenue
(2,353
)
8,237
Other operating assets and liabilities,
net
2,341
653
Net cash flows provided by (used in)
operating activities
(1,118
)
38,742
Cash flows from investing activities:
Capital expenditures
(15,881
)
(17,338
)
Proceeds from disposition of property and
equipment
12,751
690
Other, net
(68
)
(66
)
Net cash flows used in investing
activities
(3,198
)
(16,714
)
Cash flows from financing activities:
Revolving credit facility borrowings
22,619
35,592
Revolving credit facility repayments
(22,619
)
(35,592
)
Purchases of 4.75% convertible senior
notes
(10,846
)
—
Repayment of 1.50% convertible senior
notes
—
(17,315
)
Other debt and finance lease
repayments
(318
)
(226
)
Payment of financing costs
(1,111
)
(95
)
Purchases of treasury stock
(2,374
)
(3,001
)
Shares added to treasury stock as a result
of net share settlements
due to vesting of stock awards
(2,587
)
(1,948
)
Net cash flows used in financing
activities
(17,236
)
(22,585
)
Effect of exchange rate changes on cash
and cash equivalents
(371
)
959
Net change in cash and cash
equivalents
(21,923
)
402
Cash and cash equivalents, beginning of
period
47,111
42,018
Cash and cash equivalents, end of
period
$
25,188
$
42,420
Cash paid (received) for:
Interest
$
3,899
$
4,060
Income taxes, net
1,346
(1,475
)
OIL STATES INTERNATIONAL, INC.
AND SUBSIDIARIES
SEGMENT DATA
(In Thousands)
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
2024
March 31, 2024
June 30,
2023
June 30,
2024
June 30,
2023
Revenues(1):
Offshore Manufactured Products
Project-driven:
Products
$
59,752
$
53,137
$
45,455
$
112,889
$
94,072
Services
31,024
25,233
24,846
56,257
49,476
90,776
78,370
70,301
169,146
143,548
Military and other products
10,780
8,487
8,346
19,267
15,604
Total Offshore Manufactured Products
101,556
86,857
78,647
188,413
159,152
Well Site Services
46,421
47,292
64,536
93,713
131,594
Downhole Technologies
38,406
33,113
40,346
71,519
88,982
Total revenues
$
186,383
$
167,262
$
183,529
$
353,645
$
379,728
Operating income (loss)(1):
Offshore Manufactured Products(2)
$
14,357
$
10,603
$
8,838
$
24,960
$
16,536
Well Site Services(3)
(535
)
(419
)
4,732
(954
)
11,698
Downhole Technologies(4)
(1,141
)
(12,079
)
(121
)
(13,220
)
1,752
Corporate
(10,636
)
(9,282
)
(10,180
)
(19,918
)
(20,842
)
Total operating income
$
2,045
$
(11,177
)
$
3,269
$
(9,132
)
$
9,144
________________
(1)
In the first quarter 2024, certain
short-cycle, consumable product operations historically reported
within the Offshore Manufactured Products segment were integrated
into the Downhole Technologies segment. Historical segment
financial results were conformed with the revised segment
presentation.
(2)
Operating income for both the three months
ended June 30, 2024 and March 31, 2024 included facility
consolidation charges of $1.5 million, associated with the Offshore
Manufactured Products segment’s ongoing consolidation and
relocation of certain manufacturing and service locations.
(3)
Operating loss for the three months ended
June 30, 2024 and March 31, 2024 included $1.9 million and $0.7
million, respectively, in costs associated with consolidation and
exit of certain underperforming locations. Additionally, during the
three months ended June 30, 2024 and March 31, 2024 the segment
incurred $1.0 million and $0.4 million, respectively, of costs
associated with the defense of certain Well Site Services segment
patents related to proprietary technologies.
(4)
Operating loss for the three months ended
March 31, 2024 included a non-cash goodwill impairment charge of
$10.0 million, recognized in connection with the segment
realignment.
OIL STATES INTERNATIONAL, INC.
AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO
NON-GAAP FINANCIAL INFORMATION
ADJUSTED EBITDA (A)
(In Thousands)
(Unaudited)
Three Months Ended
Six Months Ended
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Net income (loss)
$
1,301
$
(13,374
)
$
558
$
(12,073
)
$
2,716
Interest expense, net
2,061
2,101
2,059
4,162
4,450
Income tax provision (benefit)
(665
)
24
862
(641
)
2,464
Depreciation and amortization expense
14,698
14,195
15,537
28,893
30,793
Impairment of goodwill
—
10,000
—
10,000
—
Facility consolidation and other
charges
4,426
2,509
—
6,935
—
Gains on extinguishment of 4.75%
convertible senior notes
(515
)
—
—
(515
)
—
Adjusted EBITDA
$
21,306
$
15,455
$
19,016
$
36,761
$
40,423
________________
(A)
The term Adjusted EBITDA consists of net
income (loss) plus net interest expense, taxes, depreciation and
amortization expense, impairment of goodwill, and facility
consolidation and other charges, less gains on extinguishment of
4.75% convertible senior notes (“2026 Notes”). Adjusted EBITDA is
not a measure of financial performance under generally accepted
accounting principles (“GAAP”) and should not be considered in
isolation from or as a substitute for net income (loss) or cash
flow measures prepared in accordance with GAAP or as a measure of
profitability or liquidity. Additionally, Adjusted EBITDA may not
be comparable to other similarly titled measures of other
companies. The Company has included Adjusted EBITDA as a
supplemental disclosure because its management believes that
Adjusted EBITDA provides useful information regarding its ability
to service debt and to fund capital expenditures and provides
investors a helpful measure for comparing its operating performance
with the performance of other companies that have different
financing and capital structures or tax rates. The Company uses
Adjusted EBITDA to compare and to monitor the performance of the
Company and its business segments to other comparable public
companies and as a benchmark for the award of incentive
compensation under its annual incentive compensation plan. The
table above sets forth reconciliations of Adjusted EBITDA to net
income (loss), which is the most directly comparable measure of
financial performance calculated under GAAP.
OIL STATES INTERNATIONAL, INC.
AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO
NON-GAAP FINANCIAL INFORMATION
ADJUSTED SEGMENT EBITDA
(B)
(In Thousands)
(Unaudited)
Three Months Ended
Six Months Ended
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Offshore Manufactured Products:
Operating income
$
14,357
$
10,603
$
8,838
$
24,960
$
16,536
Other income (expense), net
(20
)
41
81
21
246
Depreciation and amortization expense
4,247
3,693
4,075
7,940
8,150
Facility consolidation and other
charges
1,547
1,463
—
3,010
—
Adjusted Segment EBITDA
$
20,131
$
15,800
$
12,994
$
35,931
$
24,932
Well Site Services:
Operating income (loss)
$
(535
)
$
(419
)
$
4,732
$
(954
)
$
11,698
Other income (expense), net
157
(113
)
129
44
240
Depreciation and amortization expense
6,047
6,079
6,564
12,126
12,710
Facility consolidation and other
charges
2,879
1,046
—
3,925
—
Adjusted Segment EBITDA
$
8,548
$
6,593
$
11,425
$
15,141
$
24,648
Downhole Technologies:
Operating income (loss)
$
(1,141
)
$
(12,079
)
$
(121
)
$
(13,220
)
$
1,752
Depreciation and amortization expense
4,255
4,270
4,747
8,525
9,615
Impairment of goodwill
—
10,000
—
10,000
—
Adjusted Segment EBITDA
$
3,114
$
2,191
$
4,626
$
5,305
$
11,367
Corporate:
Operating loss
$
(10,636
)
$
(9,282
)
$
(10,180
)
$
(19,918
)
$
(20,842
)
Other income, net
515
—
—
515
—
Depreciation and amortization expense
149
153
151
302
318
Gains on extinguishment of 4.75%
convertible senior notes
(515
)
—
—
(515
)
—
Adjusted Segment EBITDA
$
(10,487
)
$
(9,129
)
$
(10,029
)
$
(19,616
)
$
(20,524
)
________________
(B)
The term Adjusted Segment EBITDA consists
of operating income (loss) plus other income (expense),
depreciation and amortization expense, impairment of goodwill, and
facility consolidation and other charges, less gains on
extinguishment of 2026 Notes. Adjusted Segment EBITDA is not a
measure of financial performance under GAAP and should not be
considered in isolation from or as a substitute for operating
income (loss) or cash flow measures prepared in accordance with
GAAP or as a measure of profitability or liquidity. Additionally,
Adjusted Segment EBITDA may not be comparable to other similarly
titled measures of other companies. The Company has included
Adjusted Segment EBITDA as supplemental disclosure because its
management believes that Adjusted Segment EBITDA provides useful
information regarding its ability to service debt and to fund
capital expenditures and provides investors a helpful measure for
comparing its operating performance with the performance of other
companies that have different financing and capital structures or
tax rates. The Company uses Adjusted Segment EBITDA to compare and
to monitor the performance of its business segments to other
comparable public companies and as a benchmark for the award of
incentive compensation under its annual incentive compensation
plan. The table above sets forth reconciliations of Adjusted
Segment EBITDA to operating income (loss), which is the most
directly comparable measure of financial performance calculated
under GAAP.
OIL STATES INTERNATIONAL, INC.
AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO
NON-GAAP FINANCIAL INFORMATION
ADJUSTED NET INCOME (LOSS),
EXCLUDING CHARGES AND CREDITS (C) AND
ADJUSTED NET INCOME (LOSS) PER
SHARE, EXCLUDING CHARGES AND CREDITS (D)
(In Thousands, Except Per Share
Amounts)
(Unaudited)
Three Months Ended
Six Months Ended
June 30, 2024
March 31, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Net income (loss)
$
1,301
$
(13,374
)
$
558
$
(12,073
)
$
2,716
Impairment of goodwill
—
10,000
—
10,000
—
Facility consolidation and other
charges
4,426
2,509
—
6,935
—
Gains on extinguishment of 4.75%
convertible senior notes
(515
)
—
—
(515
)
—
Total adjustments, before taxes
3,911
12,509
—
16,420
—
Tax benefit
(821
)
(1,008
)
—
(1,829
)
—
Total adjustments, net of taxes
3,090
11,501
—
14,591
—
Adjusted net income (loss), excluding
charges and credits
$
4,391
$
(1,873
)
$
558
$
2,518
$
2,716
Adjusted weighted average number of
diluted common shares outstanding (E)
62,704
62,503
63,174
62,708
63,161
Adjusted diluted net income (loss) per
share, excluding charges and credits (E)
$
0.07
$
(0.03
)
$
0.01
$
0.04
$
0.04
________________
(C)
Adjusted net income (loss), excluding
charges and credits consists of net income (loss) plus impairment
of goodwill and facility consolidation and other charges, less
gains on extinguishment of the 2026 Notes. Adjusted net 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 net income (loss) as prepared in
accordance with GAAP. The Company has included adjusted net income
(loss), excluding charges and credits as a supplemental disclosure
because its management believes that adjusted net income (loss),
excluding charges and credits provides investors a helpful measure
for comparing its operating performance with previous and
subsequent periods.
(D)
Adjusted net income (loss) per share,
excluding charges and credits is calculated as adjusted net income
(loss), excluding charges and credits divided by the weighted
average number of common shares outstanding. Adjusted net income
(loss) per share, excluding charges and credits is not a measure of
financial performance under GAAP and should not be considered in
isolation from or as a substitute for net income (loss) per share
as prepared in accordance with GAAP. The Company has included
adjusted net income (loss) per share, excluding charges and credits
as a supplemental disclosure because its management believes that
adjusted net income (loss) per share, excluding charges and credits
provides investors a helpful measure for comparing its operating
performance with previous and subsequent periods.
(E)
The calculation of diluted adjusted
earnings per share for the six months ended June 30, 2024 included
215 thousand shares issuable pursuant to outstanding performance
share units.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240729495423/en/
Lloyd A. Hajdik Oil States International, Inc. Executive Vice
President, Chief Financial Officer and Treasurer (713) 652-0582
Oil States (NYSE:OIS)
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Oil States (NYSE:OIS)
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