Press Release
Civeo Corporation Comments on Recent Macroeconomic Developments and Issues Fourth Quarter 2016 Preliminary Financial Information and 2017 Financial Guidance
01/26/17
"In recent months, several catalysts have emerged which should have favorable intermediate to long-term implications for Civeo's core end markets. The prices of both crude oil and metallurgical coal have recovered meaningfully from recent cyclical lows. In the short term, this commodity price recovery creates better financial flexibility for our upstream oil and gas and metals and mining customers. Over the longer term, we believe that the rebound in commodity prices, coupled with other recent macroeconomic developments, may support a more constructive outlook for our business," said
"In Canada, the recent regulatory approval of major pipeline projects has the potential to both drive incremental demand for mobile accommodations assets and improve take-away capacity for
Canadian oil sands producers over the longer term. Additionally, we believe that the Keystone XL pipeline in the
PRELIMINARY FOURTH QUARTER 2016 FINANCIAL INFORMATION
Although the Company's financial statements for the quarter ended
FULL YEAR 2017 GUIDANCE
The Company anticipates full year 2017 revenues of
ABOUT
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 included herein 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, natural gas, iron ore and other minerals, including the level of activity and developments in the Canadian oil sands, the level of demand for coal and other natural resources from
Financial Schedules Follow
NON-GAAP RECONCILIATION PRELIMINARY FOURTH QUARTER 2016 FINANCIAL INFORMATION (in millions) (unaudited) | |||||||||
| Although our financial statements for the quarter ended preliminary estimated financial information is available. Based upon such preliminary estimated financial information, we estimate the following range of financial information: | |||||||||
| QUARTER ENDED | |||||||||
| $ | 16.0 | $ | 18.0 | ||||||
| (1) The term EBITDA is defined as net income (loss) plus interest, taxes, depreciation and amortization. EBITDA 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 net income or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. Additionally, EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included EBITDA as supplemental disclosures because its management believes that EBITDA provides useful information regarding the Company's 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 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 estimated EBITDA to estimated loss before income taxes, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles based upon the preliminary estimated financial information available (in millions) (unaudited): | |||||||||
| QUARTER ENDED | |||||||||
| Loss before income taxes | $ | (19.8 | ) | $ | (18.8 | ) | |||
| Depreciation and amortization | 30.1 | 31.1 | |||||||
| Interest expense | 5.7 | 5.7 | |||||||
| | $ | 16.0 | $ | 18.0 | |||||
NON-GAAP RECONCILIATION - 2017 GUIDANCE (in millions) (unaudited) | |||||||||
| YEAR ENDING | |||||||||
| $ | 60.0 | $ | 65.0 | ||||||
| (1) The following table sets forth a reconciliation of estimated 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 | |||||||||
| (estimated) | |||||||||
| Net loss | $ | (75.0 | ) | $ | (72.0 | ) | |||
| Income tax benefit | (10.0 | ) | (8.0 | ) | |||||
| Depreciation and amortization | 124.0 | 124.0 | |||||||
| Interest expense | 21.0 | 21.0 | |||||||
| | $ | 60.0 | $ | 65.0 | |||||
Contacts:Source:Frank C. Steininger Civeo Corporation Senior Vice President and Chief Financial Officer 713-510-2400Marc Cunningham orJeffrey Spittel FTI Consulting 713-353-5407
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