Press Release
Civeo Announces First Quarter 2015 Earnings
04/29/15
- Strong operating cash flows after capital expenditures driven by cost containment and capital discipline
-
Announcing receipt of necessary lender commitments to amend credit facility, expanding leverage covenants and allowing for planned migration to
Canada -
Civeo's focus remains on maximizing occupancy and revenues, reducing costs and limiting capital spending
FIRST QUARTER 2015 RESULTS
In the first quarter of 2015, the Company generated revenues of
(EBITDA is defined as net income plus interest, taxes, depreciation and amortization and Adjusted EBITDA is defined as EBITDA adjusted to exclude impairment charges and certain other costs such as those incurred associated with the spin-off and the migration).
In the first quarter of 2014, the Company generated revenues of
Revenues and Adjusted EBITDA declined in 2015 as compared to 2014 primarily due to lower occupancy levels in the Company's Australian villages and Canadian lodges. In addition, first quarter 2015 results were impacted by the unfavorable impact of a stronger U.S. dollar compared to the Canadian dollar and the Australian dollar, which declined in relative value by 11% and 12%, respectively, on a year-over-year basis.
BUSINESS SEGMENT RESULTS
(Unless otherwise noted, the following discussion compares the quarterly results for the first quarter of 2015 to the results for the first quarter of 2014. The 2015 results discussed below exclude the migration expenses noted above.)
The Canadian segment generated revenues of
The Australian segment generated revenues of
U.S.
The U.S. segment generated revenues of
INCOME TAXES
The Company recognized income tax expense of
FINANCIAL CONDITION AND COMMITMENTS TO AMEND CREDIT FACILITY
The Company invested
As of the end of the first quarter, the Company had total liquidity of approximately
MANAGEMENT GUIDANCE
The Company achieved first quarter 2015 revenue and Adjusted EBITDA that was in line with its previously issued guidance and is maintaining its 2015 full year guidance as previously provided. The Company today issued second quarter 2015 guidance of
INVESTOR CONFERENCE CALL
ABOUT
FORWARD LOOKING STATEMENTS
The foregoing 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 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
ADDITIONAL INFORMATION
This communication does not constitute an offer to sell or the solicitation of an offer to buy our securities or the solicitation of any vote or approval. In connection with the proposed migration, on
The Company and its directors and officers may be deemed to be participants in the solicitation of proxies from the Company's shareholders in connection with the proposed migration. Information about these persons is set forth in the definitive proxy statement/prospectus and in documents subsequently filed by its directors and officers under the Securities Exchange Act of 1934, as amended. Investors may obtain additional information regarding the interests of such persons, which may be different from those of the Company's shareholders generally, by reading the definitive proxy statement/prospectus and other relevant documents regarding the proposed redomicile transaction filed and to be filed with the
|
||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
(In Thousands, Except Per Share Amounts) | ||
THREE MONTHS ENDED | ||
|
||
2015 | 2014 | |
Revenues | $ 170,987 | $ 252,799 |
Costs and expenses: | ||
Cost of sales and services | 102,911 | 143,510 |
Selling, general and administrative expenses | 16,686 | 16,145 |
Spin-off and formation costs | -- | 573 |
Depreciation and amortization expense | 42,446 | 39,599 |
Impairment expense | 2,738 | -- |
Other operating expense | 1,330 | 112 |
166,111 | 199,939 | |
Operating income | 4,876 | 52,860 |
Interest expense to affiliates | -- | (4,289) |
Interest expense to third-parties, net of capitalized interest | (5,609) | (841) |
Interest income | 1,122 | 939 |
Other income | 998 | 238 |
Income before income taxes | 1,387 | 48,907 |
Income tax provision | (1,157) | (12,311) |
Net income | 230 | 36,596 |
Less: Net income attributable to noncontrolling interest | 246 | 357 |
Net income (loss) attributable to |
$ (16) | $ 36,239 |
Net income (loss) per share attributable to |
||
Basic | $ -- | $ 0.34 |
Diluted | $ -- | $ 0.34 |
Weighted average number of common shares outstanding (1): | ||
Basic | 106,460 | 106,293 |
Diluted | 106,460 | 106,460 |
(1) On |
||
UNAUDITED CIVEO CORPORATION | ||
CONSOLIDATED BALANCE SHEETS | ||
(in thousands) | ||
|
|
|
2015 | 2014 | |
(UNAUDITED) | ||
Current assets: | ||
Cash and cash equivalents | $ 279,797 | $ 263,314 |
Accounts receivable, net | 128,246 | 160,253 |
Inventories | 9,836 | 13,228 |
Assets held for sale | 8,656 | -- |
Prepaid expenses and other current assets | 30,346 | 27,161 |
Total current assets | 456,881 | 463,956 |
Property, plant and equipment, net | 1,128,162 | 1,248,430 |
Goodwill, net | 44,555 | 45,260 |
Other intangible assets, net | 45,068 | 50,882 |
Other noncurrent assets | 20,133 | 20,633 |
Total assets | $ 1,694,799 | $ 1,829,161 |
Current liabilities: | ||
Accounts payable | $ 27,748 | $ 36,277 |
Accrued liabilities | 16,393 | 22,512 |
Income taxes | -- | 61 |
Current portion of long-term debt | 29,063 | 19,375 |
Deferred revenue | 12,241 | 18,539 |
Other current liabilities | 21,657 | 21,677 |
Total current liabilities | 107,102 | 118,441 |
Long-term debt to third-parties | 745,937 | 755,625 |
Deferred income taxes | 53,379 | 55,500 |
Other noncurrent liabilities | 37,458 | 39,486 |
Total liabilities | 943,876 | 969,052 |
Stockholders' equity: | ||
Common stock | 1,074 | 1,067 |
Additional paid-in capital | 1,301,761 | 1,300,042 |
accumulated deficit | (244,633) | (244,617) |
Treasury stock | (118) | -- |
Accumulated other comprehensive loss | (309,329) | (198,491) |
Total |
748,755 | 858,001 |
Noncontrolling interest | 2,168 | 2,108 |
Total stockholders' equity | 750,923 | 860,109 |
Total liabilities and stockholders' equity | $ 1,694,799 | $ 1,829,161 |
|
||
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
(in thousands) | ||
THREE MONTHS ENDED | ||
|
||
2015 | 2014 | |
Cash flows from operating activities: | ||
Net income | $ 230 | $ 36,596 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 42,446 | 39,599 |
Impairment charges | 3,753 | -- |
Deferred income tax provision (benefit) | (801) | 5,179 |
Non-cash compensation charge | 1,223 | 1,616 |
Losses (gains) on disposals of assets | (341) | 1,194 |
Provision for loss on receivables | 730 | 91 |
Other, net | 845 | 297 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 19,835 | (8,130) |
Inventories | 1,256 | 6,141 |
Accounts payable and accrued liabilities | (10,680) | 9,436 |
Taxes payable | (6,483) | (6,399) |
Other current assets and liabilities, net | (3,111) | 5,093 |
Net cash flows provided by operating activities | 48,902 | 90,713 |
Cash flows from investing activities: | ||
Capital expenditures, including capitalized interest | (10,702) | (63,525) |
Proceeds from disposition of property, plant and equipment | 1,127 | 230 |
Net cash flows used in investing activities | (9,575) | (63,295) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 500 | -- |
Contributions from Oil States | -- | 20,193 |
Net cash flows provided by financing activities | 500 | 20,193 |
Effect of exchange rate changes on cash | (23,344) | (6,988) |
Net change in cash and cash equivalents | 16,483 | 40,623 |
Cash and cash equivalents, beginning of period | 263,314 | 224,128 |
Cash and cash equivalents, end of period | $ 279,797 | $ 264,751 |
|
||
SEGMENT DATA | ||
(in thousands) | ||
(unaudited) | ||
THREE MONTHS ENDED | ||
|
||
2015 | 2014 | |
Revenues | ||
|
$ 116,900 | $ 180,324 |
|
41,859 | 55,464 |
|
12,228 | 17,011 |
Total revenues | $ 170,987 | $ 252,799 |
EBITDA (1) | ||
|
$ 37,512 | $ 61,795 |
|
20,723 | 30,804 |
|
(3,616) | 3,139 |
Corporate and eliminations | (6,545) | (3,398) |
Total EBITDA | $ 48,074 | $ 92,340 |
Adjusted EBITDA (1) | ||
|
$ 37,512 | $ 61,800 |
|
20,723 | 30,804 |
|
137 | 3,166 |
Corporate and eliminations | (5,385) | (2,857) |
Total adjusted EBITDA | $ 52,987 | $ 92,913 |
Operating income (loss) | ||
|
$ 12,120 | $ 42,042 |
|
6,727 | 15,843 |
|
(6,894) | (1,661) |
Corporate and eliminations | (7,077) | (3,364) |
Total operating income (loss) | $ 4,876 | $ 52,860 |
(1) The term EBITDA is defined as net income plus interest, taxes, depreciation and amortization. The term Adjusted EBITDA is defined as EBITDA adjusted to exclude impairment charges and certain other costs such as those incurred associated with the Spin-Off. 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. The Company has included EBITDA and Adjusted EBITDA as supplemental disclosures because its management believes that EBITDA and Adjusted EBITDA provides useful information regarding our 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 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, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles (in thousands) (unaudited): | ||
THREE MONTHS ENDED | ||
|
||
2015 | 2014 | |
Net income (loss) | $ (16) | $ 36,239 |
Income tax provision | 1,157 | 12,311 |
Depreciation and amortization | 42,446 | 39,599 |
Interest income | (1,122) | (939) |
Interest expense | 5,609 | 5,130 |
EBITDA | $ 48,074 | $ 92,340 |
Adjustments to EBITDA | ||
Transition costs (a) | -- | 573 |
Migration costs (b) | 1,160 | -- |
Loss on assets held for sale (c) | 3,753 | -- |
Adjusted EBITDA | $ 52,987 | $ 92,913 |
(a) Relates to transition costs incurred associated with becoming a stand-alone company. The |
||
(b) Relates to costs incurred associated with the Company's proposed redomiciliation to Canada. The |
||
(c) Relates to the first quarter 2015 decision to close a manufacturing facility in the United States. As a result, the related assets were written down to their estimated sales proceeds, less costs to sell. We recorded a pre-tax loss of |
||
|
||
SUPPLEMENTAL QUARTERLY SEGMENT AND OPERATING DATA | ||
(unaudited) | ||
THREE MONTHS ENDED | ||
|
||
2015 | 2014 | |
Supplemental Operating Data - Canadian Segment | ||
Revenues ($ in thousands) | ||
Lodge revenues (1) | $ 87,837 | $ 122,388 |
Mobile, open camp and product revenues | 29,063 | 57,936 |
Total Canadian revenues | $ 116,900 | $ 180,324 |
Average available lodge rooms (2) | 13,221 | 11,868 |
RevPAR for lodges (3) | $ 74 | $ 115 |
Occupancy in lodges (4) | 68% | 90% |
Canadian dollar to U.S. dollar | $ 0.806 | $ 0.906 |
Supplemental Operating Data - Australian Segment | ||
Revenues ($ in thousands) | ||
Village revenues (1) | $ 41,859 | $ 55,464 |
Average available village rooms (2) | 9,296 | 9,262 |
RevPAR for villages (3) | $ 50 | $ 67 |
Occupancy in villages (4) | 63% | 76% |
Australian dollar to U.S. dollar | $ 0.786 | $ 0.897 |
(1) Includes revenue related to rooms as well as the fees associated with catering, laundry and other services including facilities management. | ||
(2) Average available rooms include rooms that are utilized for our personnel. | ||
(3) RevPAR, or revenue per available room, is defined as lodge revenue divided by the product of (a) average available rooms and (b) days in the period. An available room is defined as a calendar day during which the room is available for occupancy. | ||
(4) Occupancy represents total billed days divided by rentable days. Rentable days excludes staff rooms and out of service rooms. | ||
CONTACT: Company Contact:Source:Frank C. Steininger Civeo Corporation Senior Vice President and Chief Financial Officer 713-510-2400
News Provided by Acquire Media