Highlights include:
-
Reported first quarter revenues of
$125.4 million , net loss of$10.0 million and operating cash flow of$12.8 million ; -
Delivered first quarter Adjusted EBITDA of
$16.2 million and free cash flow of$16.1 million ; and -
Reduced total debt to
$238.1 million as ofMarch 31, 2021 from$251.1 million as ofDecember 31, 2021 .
“Despite recent macroeconomic headwinds and winter seasonality, we continued to generate solid free cash flow and reduced our total debt. I continue to be encouraged by our team's ability to operate safely and effectively in this tough environment, while also progressing our strategic and financial initiatives. For the first quarter, our Canadian business saw a sequential improvement in occupancy despite the
First Quarter 2021 Results
In the first quarter of 2021,
By comparison, in the first quarter of 2020,
Overall, the decrease in revenues and Adjusted EBITDA in the first quarter of 2021 compared to 2020 was primarily due to decreased billed rooms in our Canadian segment and Australian segment, partially offset by improved Canadian mobile camp activity, proceeds from the Canadian Emergency Wage Subsidy program ("CEWS") and a favorable foreign currency translation impact.
(EBITDA is a non-GAAP financial measure that is defined as net income plus interest, taxes, depreciation and amortization, and Adjusted EBITDA is defined as EBITDA adjusted to exclude impairment charges. 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. Please see the reconciliations to GAAP measures at the end of this news release.)
Business Segment Results
(Unless otherwise noted, the following discussion compares the quarterly results for the first quarter of 2021 to the results for the first quarter of 2020.)
During the first quarter of 2021, the Canadian segment generated revenues of
On a constant currency basis, the Canadian segment experienced a 26% period-over-period decrease in revenues driven by a 32% year-over-year reduction in billed rooms related to decreased occupancy due to the decline in oil prices and the COVID-19 pandemic impacting the
During the first quarter of 2021, the Australian segment generated revenues of
On a constant currency basis, the Australian segment experienced relatively similar year-over-year revenues. Occupancy in our Australian villages decreased due to a soft start in 2021 in the
The
Financial Condition
As of
Civeo’s total debt outstanding on
During the first quarter of 2021,
Full Year 2021 Guidance
For the full year of 2021,
Conference Call
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 herein include the statements regarding Civeo’s future plans and outlook, including guidance, current trends 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 global health concerns and pandemics, including the COVID-19 pandemic and the risk that room occupancy may decline if our customers are limited or restricted in the availability of personnel who may become ill or be subjected to quarantine, 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,
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) |
||||||||
|
Three Months Ended
|
|||||||
|
2021 |
|
2020 |
|||||
|
|
|
|
|||||
Revenues |
$ |
125,430 |
|
|
$ |
138,792 |
|
|
|
|
|
|
|||||
Costs and expenses: |
|
|
|
|||||
Cost of sales and services |
|
99,810 |
|
|
|
103,313 |
|
|
Selling, general and administrative expenses |
|
14,181 |
|
|
|
13,937 |
|
|
Depreciation and amortization expense |
|
21,269 |
|
|
|
25,502 |
|
|
Impairment expense |
|
— |
|
|
|
144,120 |
|
|
Other operating expense |
|
71 |
|
|
|
989 |
|
|
|
|
135,331 |
|
|
|
287,861 |
|
|
Operating loss |
|
(9,901 |
) |
|
|
(149,069 |
) |
|
|
|
|
|
|||||
Interest expense |
|
(3,362 |
) |
|
|
(5,595 |
) |
|
Interest income |
|
— |
|
|
|
16 |
|
|
Other income |
|
4,914 |
|
|
|
25 |
|
|
Loss before income taxes |
|
(8,349 |
) |
|
|
(154,623 |
) |
|
Income tax (expense) benefit |
|
(1,076 |
) |
|
|
8,811 |
|
|
Net loss |
|
(9,425 |
) |
|
|
(145,812 |
) |
|
Less: Net income attributable to noncontrolling interest |
|
59 |
|
|
|
258 |
|
|
Net loss attributable to |
|
(9,484 |
) |
|
|
(146,070 |
) |
|
Less: Dividends attributable to Class A preferred shares |
|
478 |
|
|
|
468 |
|
|
Net loss attributable to |
$ |
(9,962 |
) |
|
$ |
(146,538 |
) |
|
|
|
|
|
|||||
Net loss per share attributable to |
|
|
|
|
||||
Basic |
$ |
(0.70 |
) |
|
$ |
(10.43 |
) |
|
Diluted |
$ |
(0.70 |
) |
|
$ |
(10.43 |
) |
|
|
|
|
|
|||||
Weighted average number of common shares outstanding: |
|
|
|
|||||
Basic |
|
14,211 |
|
|
|
14,043 |
|
|
Diluted |
|
14,211 |
|
|
|
14,043 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) |
||||||||
|
|
|
|
|||||
|
(UNAUDITED) |
|
|
|||||
Current assets: |
|
|
|
|||||
Cash and cash equivalents |
$ |
5,455 |
|
|
$ |
6,155 |
|
|
Accounts receivable, net |
|
87,783 |
|
|
|
89,782 |
|
|
Inventories |
|
6,677 |
|
|
|
6,181 |
|
|
Assets held for sale |
|
— |
|
|
|
3,910 |
|
|
Prepaid expenses and other current assets |
|
8,745 |
|
|
|
13,185 |
|
|
Total current assets |
|
108,660 |
|
|
|
119,213 |
|
|
|
|
|
|
|||||
Property, plant and equipment, net |
|
468,961 |
|
|
|
486,930 |
|
|
|
|
8,601 |
|
|
|
8,729 |
|
|
Other intangible assets, net |
|
99,269 |
|
|
|
99,749 |
|
|
Operating lease right-of-use assets |
|
22,338 |
|
|
|
22,606 |
|
|
Other noncurrent assets |
|
2,349 |
|
|
|
3,626 |
|
|
Total assets |
$ |
710,178 |
|
|
$ |
740,853 |
|
|
|
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Accounts payable |
$ |
42,336 |
|
|
$ |
42,056 |
|
|
Accrued liabilities |
|
20,801 |
|
|
|
27,349 |
|
|
Income taxes |
|
255 |
|
|
|
203 |
|
|
Current portion of long-term debt |
|
35,047 |
|
|
|
34,585 |
|
|
Deferred revenue |
|
5,983 |
|
|
|
6,812 |
|
|
Other current liabilities |
|
6,354 |
|
|
|
5,760 |
|
|
Total current liabilities |
|
110,776 |
|
|
|
116,765 |
|
|
|
|
|
|
|||||
Long-term debt |
|
200,756 |
|
|
|
214,000 |
|
|
Operating lease liabilities |
|
18,941 |
|
|
|
19,834 |
|
|
Other noncurrent liabilities |
|
15,566 |
|
|
|
14,897 |
|
|
Total liabilities |
|
346,039 |
|
|
|
365,496 |
|
|
|
|
|
|
|||||
Shareholders' equity: |
|
|
|
|||||
Preferred shares |
|
60,494 |
|
|
|
60,016 |
|
|
Common shares |
|
— |
|
|
|
— |
|
|
Additional paid-in capital |
|
1,579,342 |
|
|
|
1,578,315 |
|
|
Accumulated deficit |
|
(917,689 |
) |
|
|
(907,727 |
) |
|
|
|
(8,050 |
) |
|
|
(6,930 |
) |
|
Accumulated other comprehensive loss |
|
(350,606 |
) |
|
|
(348,989 |
) |
|
|
|
363,491 |
|
|
|
374,685 |
|
|
Noncontrolling interest |
|
648 |
|
|
|
672 |
|
|
Total shareholders' equity |
|
364,139 |
|
|
|
375,357 |
|
|
Total liabilities and shareholders' equity |
$ |
710,178 |
|
|
$ |
740,853 |
|
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) |
||||||||
|
Three Months Ended
|
|||||||
|
2021 |
|
2020 |
|||||
|
|
|
|
|||||
Cash flows from operating activities: |
|
|
|
|||||
Net loss |
$ |
(9,425 |
) |
|
$ |
(145,812 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|||||
Depreciation and amortization |
|
21,269 |
|
|
|
25,502 |
|
|
Impairment charges |
|
— |
|
|
|
144,120 |
|
|
Deferred income tax expense (benefit) |
|
1,041 |
|
|
|
(8,941 |
) |
|
Non-cash compensation charge |
|
1,027 |
|
|
|
2,208 |
|
|
Gains on disposals of assets |
|
(1,902 |
) |
|
|
(21 |
) |
|
Provision for credit losses, net of recoveries |
|
193 |
|
|
|
54 |
|
|
Other, net |
|
716 |
|
|
|
693 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|||||
Accounts receivable |
|
1,806 |
|
|
|
(1,496 |
) |
|
Inventories |
|
(526 |
) |
|
|
(740 |
) |
|
Accounts payable and accrued liabilities |
|
(5,287 |
) |
|
|
6,280 |
|
|
Taxes payable |
|
51 |
|
|
|
133 |
|
|
Other current assets and liabilities, net |
|
3,854 |
|
|
|
(1,143 |
) |
|
Net cash flows provided by operating activities |
|
12,817 |
|
|
|
20,837 |
|
|
|
|
|
|
|||||
Cash flows from investing activities: |
|
|
|
|||||
Capital expenditures |
|
(3,372 |
) |
|
|
(2,651 |
) |
|
Proceeds from disposition of property, plant and equipment |
|
6,651 |
|
|
|
72 |
|
|
Net cash flows provided by (used in) investing activities |
|
3,279 |
|
|
|
(2,579 |
) |
|
|
|
|
|
|||||
Cash flows from financing activities: |
|
|
|
|||||
Term loan repayments |
|
(8,872 |
) |
|
|
(8,109 |
) |
|
Revolving credit borrowings (repayments), net |
|
(6,691 |
) |
|
|
(6,080 |
) |
|
Taxes paid on vested shares |
|
(1,120 |
) |
|
|
(1,442 |
) |
|
Net cash flows used in financing activities |
|
(16,683 |
) |
|
|
(15,631 |
) |
|
|
|
|
|
|||||
Effect of exchange rate changes on cash |
|
(113 |
) |
|
|
(400 |
) |
|
Net change in cash and cash equivalents |
|
(700 |
) |
|
|
2,227 |
|
|
|
|
|
|
|||||
Cash and cash equivalents, beginning of period |
|
6,155 |
|
|
|
3,331 |
|
|
Cash and cash equivalents, end of period |
$ |
5,455 |
|
|
$ |
5,558 |
|
SEGMENT DATA (in thousands) (unaudited) |
||||||||
|
Three Months Ended
|
|||||||
|
2021 |
|
2020 |
|||||
Revenues |
|
|
|
|||||
|
$ |
61,885 |
|
|
$ |
79,348 |
|
|
|
|
59,637 |
|
|
|
49,113 |
|
|
|
|
3,908 |
|
|
|
10,331 |
|
|
Total revenues |
$ |
125,430 |
|
|
$ |
138,792 |
|
|
|
|
|
|
|||||
EBITDA (1) |
|
|
|
|||||
|
$ |
10,796 |
|
|
$ |
(120,256 |
) |
|
|
|
12,809 |
|
|
|
16,161 |
|
|
|
|
(1,221 |
) |
|
|
(12,053 |
) |
|
Corporate and eliminations |
|
(6,161 |
) |
|
|
(7,652 |
) |
|
Total EBITDA |
$ |
16,223 |
|
|
$ |
(123,800 |
) |
|
|
|
|
|
|||||
Adjusted EBITDA (1) |
|
|
|
|||||
|
$ |
10,796 |
|
|
$ |
11,425 |
|
|
|
|
12,809 |
|
|
|
16,161 |
|
|
|
|
(1,221 |
) |
|
|
386 |
|
|
Corporate and eliminations |
|
(6,161 |
) |
|
|
(7,652 |
) |
|
Total adjusted EBITDA |
$ |
16,223 |
|
|
$ |
20,320 |
|
|
|
|
|
|
|||||
Operating income (loss) |
|
|
|
|||||
|
$ |
(7,659 |
) |
|
$ |
(136,631 |
) |
|
|
|
3,307 |
|
|
|
6,164 |
|
|
|
|
(2,598 |
) |
|
|
(14,134 |
) |
|
Corporate and eliminations |
|
(2,951 |
) |
|
|
(4,468 |
) |
|
Total operating income (loss) |
$ |
(9,901 |
) |
|
$ |
(149,069 |
) |
|
|
|
|
|
|||||
(1) Please see Non-GAAP Reconciliation Schedule. |
NON-GAAP RECONCILIATIONS (in thousands) (unaudited) |
|||||||
|
Three Months Ended
|
||||||
|
2021 |
|
2020 |
||||
|
|
|
|
||||
EBITDA (1) |
$ |
16,223 |
|
$ |
(123,800 |
) |
|
Adjusted EBITDA (1) |
$ |
16,223 |
|
$ |
20,320 |
|
|
Free Cash Flow (2) |
$ |
16,096 |
|
$ |
18,258 |
|
(1) |
The term EBITDA is defined as net income (loss) attributable to |
|
The following table sets forth a reconciliation of EBITDA and Adjusted EBITDA to net loss attributable to |
|
Three Months Ended
|
|||||||
|
2021 |
|
2020 |
|||||
|
|
|
|
|||||
Net loss attributable to |
$ |
(9,484 |
) |
|
$ |
(146,070 |
) |
|
Income tax expense (benefit) |
|
1,076 |
|
|
|
(8,811 |
) |
|
Depreciation and amortization |
|
21,269 |
|
|
|
25,502 |
|
|
Interest income |
|
— |
|
|
|
(16 |
) |
|
Interest expense |
|
3,362 |
|
|
|
5,595 |
|
|
EBITDA |
$ |
16,223 |
|
|
$ |
(123,800 |
) |
|
Adjustments to EBITDA |
|
|
|
|||||
Impairment of long-lived assets (a) |
|
— |
|
|
|
50,514 |
|
|
Impairment of goodwill (b) |
|
— |
|
|
|
93,606 |
|
|
Adjusted EBITDA |
$ |
16,223 |
|
|
$ |
20,320 |
|
(a) |
Relates to asset impairments in the first quarter of 2020. In the first quarter of 2020, we recorded a pre-tax loss related to the impairment of long-lived assets in our Canadian segment of |
|
|
||
(b) |
Relates to the impairment of goodwill in the first quarter of 2020. The |
|
(2) |
The term Free Cash Flow 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. |
|
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
|
|||||||
|
2021 |
|
2020 |
|||||
|
|
|
|
|||||
Net Cash Flows Provided by Operating Activities |
$ |
12,817 |
|
|
$ |
20,837 |
|
|
Capital expenditures |
|
(3,372 |
) |
|
|
(2,651 |
) |
|
Proceeds from disposition of property, plant and equipment |
|
6,651 |
|
|
|
72 |
|
|
Free Cash Flow |
$ |
16,096 |
|
|
$ |
18,258 |
|
NON-GAAP RECONCILIATIONS - GUIDANCE (in millions) (unaudited) |
||||||
|
Year Ending December
|
|||||
|
|
|
|
|||
|
$ |
90.0 |
|
$ |
100.0 |
|
|
$ |
90.0 |
|
$ |
100.0 |
(1) |
The following table sets forth a reconciliation of estimated Adjusted EBITDA to estimated net 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 |
$ |
(10.5 |
) |
|
$ |
(0.5 |
) |
|
Income tax expense |
|
0.5 |
|
|
|
0.5 |
|
|
Depreciation and amortization |
|
85.0 |
|
|
|
85.0 |
|
|
Interest expense |
|
15.0 |
|
|
|
15.0 |
|
|
EBITDA |
$ |
90.0 |
|
|
$ |
100.0 |
|
|
|
|
|
|
|||||
Adjustments to EBITDA |
|
|
|
|||||
Impairment expense |
|
— |
|
|
|
— |
|
|
Representations and warranties settlement |
|
— |
|
|
|
— |
|
|
Adjusted EBITDA |
$ |
90.0 |
|
|
$ |
100.0 |
|
SUPPLEMENTAL QUARTERLY SEGMENT AND OPERATING DATA
( (unaudited) |
||||||
|
Three Months Ended
|
|||||
|
2021 |
|
2020 |
|||
|
|
|
|
|||
Supplemental Operating Data - Canadian Segment |
|
|
|
|||
Revenues |
|
|
|
|||
Accommodation revenue (1) |
$ |
46,530 |
|
$ |
66,066 |
|
Mobile facility rental revenue (2) |
|
10,499 |
|
|
2,508 |
|
Food and other services revenue (3) |
|
4,856 |
|
|
10,774 |
|
Total Canadian revenues |
$ |
61,885 |
|
$ |
79,348 |
|
|
|
|
|
|||
Costs |
|
|
|
|||
Accommodation cost |
$ |
38,336 |
|
$ |
48,055 |
|
Mobile facility rental cost |
|
6,774 |
|
|
3,257 |
|
Food and other services cost |
|
4,121 |
|
|
10,015 |
|
Indirect other cost |
|
2,654 |
|
|
2,945 |
|
Total Canadian cost of sales and services |
$ |
51,885 |
|
$ |
64,272 |
|
|
|
|
|
|||
Average daily rates (4) |
$ |
97 |
|
$ |
92 |
|
|
|
|
|
|||
Billed rooms (5) |
|
480,066 |
|
|
708,323 |
|
|
|
|
|
|||
Canadian dollar to |
$ |
0.790 |
|
$ |
0.745 |
|
|
|
|
|
|||
Supplemental Operating Data - Australian Segment |
|
|
|
|||
Accommodation revenue (1) |
$ |
33,675 |
|
$ |
32,585 |
|
Food and other services revenue (3) |
|
25,962 |
|
|
16,528 |
|
Total Australian revenues |
$ |
59,637 |
|
$ |
49,113 |
|
|
|
|
|
|||
Costs |
|
|
|
|||
Accommodation cost |
$ |
17,105 |
|
$ |
14,995 |
|
Food and other services cost |
|
24,297 |
|
|
13,707 |
|
Indirect other cost |
|
1,501 |
|
|
851 |
|
Total Australian cost of sales and services |
$ |
42,903 |
|
$ |
29,553 |
|
|
|
|
|
|||
Average daily rates (4) |
$ |
79 |
|
$ |
69 |
|
|
|
|
|
|||
Billed rooms (5) |
|
424,666 |
|
|
471,840 |
|
|
|
|
|
|||
Australian dollar to |
$ |
0.773 |
|
$ |
0.658 |
(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 the periods presented. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210430005146/en/
Senior Vice President & Chief Financial Officer
713-510-2400
FTI Consulting
832-667-5140
Source: