Press Release

Civeo Reports Fourth Quarter and Full Year 2021 Results

02/28/22

Fourth Quarter & Full Year 2021 Highlights:

  • Fourth quarter revenues of $159.8 million, net income of $9.8 million and operating cash flow of $25.3 million;
  • Fourth quarter Adjusted EBITDA of $34.5 million and free cash flow of $26.1 million;
  • Reduced net leverage ratio to 1.49x as of December 31, 2021 from 1.86x as of September 30, 2021; and
  • $88.5 million of operating cash flow and $87.3 million of free cash flow for the full year 2021.

HOUSTON & CALGARY, Alberta--(BUSINESS WIRE)--Feb. 28, 2022-- Civeo Corporation (NYSE:CVEO) today reported financial and operating results for the fourth quarter and year ended December 31, 2021.

“Despite pandemic-related headwinds throughout 2021, Civeo continued to operate safely, generate significant free cash flow, and substantially reduce our total debt balance as well as our net leverage ratio. We also replaced and refinanced our entire credit agreement, which extends the maturity of all of our debt outstanding to September 2025, and announced a share repurchase program,” said Bradley J. Dodson, Civeo's President and Chief Executive Officer.

Mr. Dodson continued, “I am proud of the Civeo team's execution and perseverance in this tough operating environment that helped us generate full-year operating cash flow of over $85 million. Our 2021 results and accomplishments were a testament to the hard work of our team and the winning combination of our diversified revenue profile and our continued capital discipline.”

Mr. Dodson added, “Our strategic investment in diversifying our revenue profile over the last few years has paid off again in 2021 as we have experienced volatility across our business segments related to the pandemic, international trade disputes and substantial commodity price fluctuations. We will continue to seek opportunities to expand our customer base and geographic footprint to reduce volatility in our free cash flow generation as we continue to reduce our leverage, improving our financial and strategic flexibility.”

Fourth Quarter 2021 Results

In the fourth quarter of 2021, Civeo generated revenues of $159.8 million and reported net income of $9.8 million, or $0.58 per diluted share. During the fourth quarter of 2021, Civeo produced operating cash flow of $25.3 million, Adjusted EBITDA of $34.5 million and free cash flow of $26.1 million.

By comparison, in the fourth quarter of 2020, Civeo generated revenues of $133.4 million and reported a net loss of $2.3 million, or $0.16 per share. During the fourth quarter of 2020, Civeo produced operating cash flow of $36.7 million, Adjusted EBITDA of $23.7 million and free cash flow of $33.2 million.

Overall, the increase in revenues and Adjusted EBITDA in the fourth quarter of 2021 compared to 2020 was primarily due to an increase in Canadian occupancy and Canadian mobile camp activity, partially offset by decreased Australian village billed rooms. Adjusted EBITDA was also positively impacted by a $3.8 million gain on sale of assets from the fourth quarter 2021 sale of our West Permian lodge, partially offset by a year-over-year increase in labor costs in Australia.

Full Year 2021 Results

For the full year 2021, the Company reported revenues of $594.5 million and a net loss of $0.6 million, or $0.04 per share. Adjusted EBITDA for the full year 2021 was $109.1 million. This compared to revenues of $529.7 million and a net loss of $136.1 million, or $9.64 per share, for the full year 2020. The loss in 2020 resulted in part from $144.1 million in goodwill and asset impairments, partially offset by $4.7 million of income associated with the settlement of a representations and warranties claim. Adjusted EBITDA was $108.1 million in 2020. Results for the full year of 2021 reflect the impact of a strengthened Australian and Canadian dollar relative to the U.S. dollar, which increased revenues and Adjusted EBITDA by $40.6 million and $9.8 million, respectively.

The modest increase in Adjusted EBITDA in 2021 as compared to 2020 was largely driven by increased mobile camp activity in our Canadian segment, as well as the favorable currency impact noted above, partially offset by decreased billed rooms and increased labor costs across the Australian segment.

Business Segment Results

(Unless otherwise noted, the following discussion compares the quarterly results for the fourth quarter of 2021 to the results for the fourth quarter of 2020.)

Canada

During the fourth quarter of 2021, the Canada segment generated revenues of $92.2 million, operating income of $6.9 million and Adjusted EBITDA of $23.1 million, compared to revenues of $65.5 million, operating loss of $4.1 million and Adjusted EBITDA of $13.8 million in the fourth quarter of 2020. Results from the fourth quarter of 2021 reflect the impact of a strengthened Canadian dollar relative to the U.S. dollar, which increased revenues and Adjusted EBITDA by $3.1 million and $0.8 million, respectively.

On a constant currency basis, the Canadian segment experienced a 36% period-over-period increase in revenues driven by (1) a 25% year-over-year increase in billed rooms and (2) increased mobile camp work related to pipeline construction. Adjusted EBITDA for the Canadian segment increased 68% year-over-year primarily due to the aforementioned dynamics and operating leverage.

Australia

During the fourth quarter of 2021, the Australia segment generated revenues of $62.3 million, operating income of $2.2 million and Adjusted EBITDA of $13.6 million, compared to revenues of $63.7 million, operating income of $3.6 million and Adjusted EBITDA of $17.2 million in the fourth quarter of 2020.

On a constant currency basis, the Australian segment experienced a 2% period-over-period decrease in revenues driven by decreased occupancy at our Bowen Basin villages. Australian village occupancy decreased 3% year-over-year largely due to continued uncertainty created by the China/Australia trade dispute and COVID-19. Adjusted EBITDA from the Australian segment decreased 21% year-over-year due to lower village occupancy as well as increased labor costs which were largely the result of COVID related travel and border restrictions.

U.S.

The U.S. segment generated revenues of $5.3 million, operating loss of $3.0 million and Adjusted EBITDA of $3.3 million in the fourth quarter of 2021, compared to revenues of $4.2 million, operating loss of $3.2 million and an Adjusted EBITDA loss of $1.4 million in the fourth quarter of 2020. The revenue and Adjusted EBITDA increase was primarily due to increased activity in our lodges and offshore business, as well as the aforementioned gain on the sale of our West Permian Lodge.

Financial Condition

As of December 31, 2021, Civeo had total liquidity of approximately $92.8 million, consisting of $86.5 million available under its revolving credit facilities and $6.3 million of cash on hand.

Civeo’s total debt outstanding on December 31, 2021 was $175.1 million, a $20.1 million decrease since September 30, 2021 and a $76.0 million decrease from December 31, 2020.

Civeo reduced its net leverage ratio to 1.49x as of December 31, 2021 from 1.86x as of September 30, 2021.

During 2021, Civeo invested $15.6 million in capital expenditures, up from $10.1 million during 2020. This increase is primarily due to increased Canadian lodge maintenance coupled with increased Canadian pipeline-related capital expenditures.

Full Year 2022 Guidance

For the full year of 2022, Civeo expects revenues of $600.0 million to $615.0 million, EBITDA of $90.0 million to $95.0 million and capital expenditures of $20.0 million to $25.0 million.

Conference Call

Civeo will host a conference call to discuss its fourth quarter 2021 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 13727269#. 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 1372769#.

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 27 lodges and villages in Canada, Australia and the U.S., with an aggregate of over 28,000 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 include the statements regarding Civeo’s future plans and outlook, including guidance, current trends and liquidity needs, and ability to pay down debt 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, any increases in or severity of COVID-19 cases (including due to existing or new variants) 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, 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 the company’s ability to integrate 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, global weather conditions, natural disasters 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 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 certain other unusual or non-operating items. 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.

See “Non-GAAP Reconciliation” below for 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,

 

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

 

Revenues

 

$

159,794

 

 

$

133,378

 

 

$

594,463

 

 

$

529,729

 

 

 

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

Cost of sales and services

 

 

117,220

 

 

 

98,208

 

 

 

436,462

 

 

 

382,088

 

Selling, general and administrative expenses

 

 

14,396

 

 

 

14,767

 

 

 

60,600

 

 

 

53,656

 

Depreciation and amortization expense

 

 

20,173

 

 

 

24,020

 

 

 

83,101

 

 

 

96,547

 

Impairment expense

 

 

 

 

 

 

 

 

7,935

 

 

 

144,120

 

Other operating expense/(income)

 

 

191

 

 

 

(249

)

 

 

313

 

 

 

506

 

 

 

 

151,980

 

 

 

136,746

 

 

 

588,411

 

 

 

676,917

 

Operating income (loss)

 

 

7,814

 

 

 

(3,368

)

 

 

6,052

 

 

 

(147,188

)

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(3,035

)

 

 

(3,592

)

 

 

(12,964

)

 

 

(16,687

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

(416

)

 

 

(383

)

Interest income

 

 

 

 

 

 

 

 

2

 

 

 

20

 

Other income

 

 

7,133

 

 

 

3,614

 

 

 

13,199

 

 

 

20,823

 

Income (loss) before income taxes

 

 

11,912

 

 

 

(3,346

)

 

 

5,873

 

 

 

(143,415

)

Income tax benefit (provision)

 

 

(1,022

)

 

 

2,126

 

 

 

(3,376

)

 

 

10,635

 

Net income (loss)

 

 

10,890

 

 

 

(1,220

)

 

 

2,497

 

 

 

(132,780

)

Less: Net income attributable to noncontrolling interest

 

 

613

 

 

 

556

 

 

 

1,147

 

 

 

1,470

 

Net income (loss) attributable to Civeo Corporation

 

 

10,277

 

 

 

(1,776

)

 

 

1,350

 

 

 

(134,250

)

Less: Dividends attributable to Class A preferred shares

 

 

485

 

 

 

476

 

 

 

1,925

 

 

 

1,887

 

Net income (loss) attributable to Civeo Corporation common shareholders

 

$

9,792

 

 

$

(2,252

)

 

$

(575

)

 

$

(136,137

)

 

 

 

 

 

 

 

 

 

Net income (loss) per share attributable to Civeo Corporation common shareholders:

 

 

 

 

 

 

Basic

 

$

0.59

 

 

$

(0.16

)

 

$

(0.04

)

 

$

(9.64

)

Diluted

 

$

0.58

 

 

$

(0.16

)

 

$

(0.04

)

 

$

(9.64

)

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

14,165

 

 

 

14,161

 

 

 

14,232

 

 

 

14,129

 

Diluted

 

 

14,289

 

 

 

14,161

 

 

 

14,232

 

 

 

14,129

 

CIVEO CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

 

December 31,
2021

 

December 31,
2020

 

 

(UNAUDITED)

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

6,282

 

 

$

6,155

 

Accounts receivable, net

 

 

114,859

 

 

 

89,782

 

Inventories

 

 

6,468

 

 

 

6,181

 

Assets held for sale

 

 

11,762

 

 

 

3,910

 

Prepaid expenses and other current assets

 

 

17,822

 

 

 

13,185

 

Total current assets

 

 

157,193

 

 

 

119,213

 

 

 

 

 

 

Property, plant and equipment, net

 

 

389,996

 

 

 

486,930

 

Goodwill, net

 

 

8,204

 

 

 

8,729

 

Other intangible assets, net

 

 

93,642

 

 

 

99,749

 

Operating lease right-of-use assets

 

 

18,327

 

 

 

22,606

 

Other noncurrent assets

 

 

5,372

 

 

 

3,626

 

Total assets

 

$

672,734

 

 

$

740,853

 

 

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

49,321

 

 

$

42,056

 

Accrued liabilities

 

 

33,564

 

 

 

27,349

 

Income taxes

 

 

171

 

 

 

203

 

Current portion of long-term debt

 

 

30,576

 

 

 

34,585

 

Deferred revenue

 

 

18,479

 

 

 

6,812

 

Other current liabilities

 

 

4,807

 

 

 

5,760

 

Total current liabilities

 

 

136,918

 

 

 

116,765

 

 

 

 

 

 

Long-term debt

 

 

142,602

 

 

 

214,000

 

Deferred income taxes

 

 

896

 

 

 

 

Operating lease liabilities

 

 

15,429

 

 

 

19,834

 

Other noncurrent liabilities

 

 

13,778

 

 

 

14,897

 

Total liabilities

 

 

309,623

 

 

 

365,496

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

Preferred shares

 

 

61,941

 

 

 

60,016

 

Common shares

 

 

 

 

 

 

Additional paid-in capital

 

 

1,582,442

 

 

 

1,578,315

 

Accumulated deficit

 

 

(912,951

)

 

 

(907,727

)

Treasury stock

 

 

(8,050

)

 

 

(6,930

)

Accumulated other comprehensive loss

 

 

(361,883

)

 

 

(348,989

)

Total Civeo Corporation shareholders' equity

 

 

361,499

 

 

 

374,685

 

Noncontrolling interest

 

 

1,612

 

 

 

672

 

Total shareholders' equity

 

 

363,111

 

 

 

375,357

 

Total liabilities and shareholders' equity

 

$

672,734

 

 

$

740,853

 

CIVEO CORPORATION

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

 

TWELVE MONTHS ENDED
DECEMBER 31,

 

 

2021

 

2020

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

Net income (loss)

 

$

2,497

 

 

$

(132,780

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

 

83,101

 

 

 

96,547

 

Impairment charges

 

 

7,935

 

 

 

144,120

 

Loss on extinguishment of debt

 

 

416

 

 

 

383

 

Deferred income tax expense (benefit)

 

 

3,070

 

 

 

(11,122

)

Non-cash compensation charge

 

 

4,127

 

 

 

6,066

 

Gain on disposals of assets

 

 

(6,188

)

 

 

(2,905

)

Provision for loss on receivables, net of recoveries

 

 

141

 

 

 

44

 

Other, net

 

 

2,200

 

 

 

(2,873

)

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

 

(28,131

)

 

 

13,679

 

Inventories

 

 

(526

)

 

 

171

 

Accounts payable and accrued liabilities

 

 

15,435

 

 

 

6,890

 

Taxes payable

 

 

(28

)

 

 

(134

)

Other current assets and liabilities, net

 

 

4,485

 

 

 

(725

)

Net cash flows provided by operating activities

 

 

88,534

 

 

 

117,361

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

Capital expenditures

 

 

(15,571

)

 

 

(10,083

)

Proceeds from disposition of property, plant and equipment

 

 

14,306

 

 

 

3,690

 

Other, net

 

 

559

 

 

 

4,619

 

Net cash flows used in investing activities

 

 

(706

)

 

 

(1,774

)

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Term loan repayments

 

 

(125,483

)

 

 

(39,855

)

Revolving credit borrowings (repayments), net

 

 

49,157

 

 

 

(70,310

)

Debt issuance costs

 

 

(4,412

)

 

 

(2,583

)

Repurchases of common shares

 

 

(4,649

)

 

 

 

Other, net

 

 

(1,120

)

 

 

(1,458

)

Net cash flows used in financing activities

 

 

(86,507

)

 

 

(114,206

)

 

 

 

 

 

Effect of exchange rate changes on cash

 

 

(1,194

)

 

 

1,443

 

Net change in cash and cash equivalents

 

 

127

 

 

 

2,824

 

 

 

 

 

 

Cash and cash equivalents, beginning of period

 

 

6,155

 

 

 

3,331

 

Cash and cash equivalents, end of period

 

$

6,282

 

 

$

6,155

 

CIVEO CORPORATION

SEGMENT DATA

(in thousands)

(unaudited)

 

 

 

THREE MONTHS ENDED
DECEMBER 31,

 

TWELVE MONTHS ENDED
DECEMBER 31,

 

 

2021

 

2020

 

2021

 

2020

Revenues

 

 

 

 

 

 

 

 

Canada

 

$

92,155

 

 

$

65,530

 

 

$

321,378

 

 

$

269,649

 

Australia

 

 

62,300

 

 

 

63,673

 

 

 

251,074

 

 

 

234,542

 

United States

 

 

5,339

 

 

 

4,175

 

 

 

22,011

 

 

 

25,538

 

Total revenues

 

$

159,794

 

 

$

133,378

 

 

$

594,463

 

 

$

529,729

 

 

 

 

 

 

 

 

 

 

EBITDA (1)

 

 

 

 

 

 

 

 

Canada

 

$

23,125

 

 

$

13,755

 

 

$

76,326

 

 

$

(65,221

)

Australia

 

 

13,570

 

 

 

17,190

 

 

 

48,727

 

 

 

73,666

 

United States

 

 

3,283

 

 

 

(1,425

)

 

 

1,815

 

 

 

(16,345

)

Corporate and eliminations

 

 

(5,471

)

 

 

(5,810

)

 

 

(25,663

)

 

 

(23,388

)

Total EBITDA

 

$

34,507

 

 

$

23,710

 

 

$

101,205

 

 

$

(31,288

)

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (1)

 

 

 

 

 

 

 

 

Canada

 

$

23,125

 

 

$

13,755

 

 

$

76,326

 

 

$

61,770

 

Australia

 

 

13,570

 

 

 

17,190

 

 

 

56,662

 

 

 

73,666

 

United States

 

 

3,283

 

 

 

(1,425

)

 

 

1,815

 

 

 

(3,906

)

Corporate and eliminations

 

 

(5,471

)

 

 

(5,810

)

 

 

(25,663

)

 

 

(23,388

)

Total adjusted EBITDA

 

$

34,507

 

 

$

23,710

 

 

$

109,140

 

 

$

108,142

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

 

 

 

 

 

Canada

 

$

6,892

 

 

$

(4,092

)

 

$

12,816

 

 

$

(146,435

)

Australia

 

 

2,230

 

 

 

3,559

 

 

 

7,303

 

 

 

27,804

 

United States

 

 

(3,038

)

 

 

(3,197

)

 

 

(8,869

)

 

 

(23,151

)

Corporate and eliminations

 

 

1,730

 

 

 

362

 

 

 

(5,198

)

 

 

(5,406

)

Total operating income (loss)

 

$

7,814

 

 

$

(3,368

)

 

$

6,052

 

 

$

(147,188

)

 

 

 

 

 

 

 

 

 

(1) Please see Non-GAAP Reconciliation Schedule.

 

 

CIVEO CORPORATION

NON-GAAP RECONCILIATIONS

(in thousands)

(unaudited)

 

 

 

THREE MONTHS ENDED
DECEMBER 31,

 

TWELVE MONTHS ENDED
DECEMBER 31,

 

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

 

EBITDA (1)

 

$

34,507

 

$

23,710

 

$

101,205

 

$

(31,288

)

Adjusted EBITDA (1)

 

$

34,507

 

$

23,710

 

$

109,140

 

$

108,142

 

Free Cash Flow (2)

 

$

26,128

 

$

33,201

 

$

87,269

 

$

110,968

 

(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 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

 

TWELVE MONTHS ENDED

DECEMBER 31,

DECEMBER 31,

 

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Civeo Corporation

 

$

10,277

 

$

(1,776

)

 

$

1,350

 

 

$

(134,250

)

Income tax provision (benefit)

 

 

1,022

 

 

(2,126

)

 

 

3,376

 

 

 

(10,635

)

Depreciation and amortization

 

 

20,173

 

 

24,020

 

 

 

83,101

 

 

 

96,547

 

Interest income

 

 

 

 

 

 

 

(2

)

 

 

(20

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

416

 

 

 

383

 

Interest expense

 

 

3,035

 

 

3,592

 

 

 

12,964

 

 

 

16,687

 

EBITDA

 

$

34,507

 

$

23,710

 

 

$

101,205

 

 

$

(31,288

)

Adjustments to EBITDA

 

 

 

 

 

 

 

 

Impairment of long-lived assets (a)

 

 

 

 

 

 

 

7,935

 

 

 

50,514

 

Impairment of goodwill (b)

 

 

 

 

 

 

 

 

 

 

93,606

 

Representations and warranties settlement (c)

 

 

 

 

 

 

 

 

 

 

(4,690

)

Adjusted EBITDA

 

$

34,507

 

$

23,710

 

 

$

109,140

 

 

$

108,142

 

(a)

Relates to asset impairments in the second quarter of 2021 and the first quarter of 2020. In the second quarter of 2021, we recorded a pre-tax loss related to the impairment of long-lived assets in our Australian segment of $7.9 million, which is included in Impairment expense on the unaudited statements of operations.

 

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 $38.1 million and a pre-tax loss related to the impairment of long-lived assets in our U.S. segment of $12.4 million, which is included in Impairment expense on the unaudited statements of operations.

 

(b)

Relates to the impairment of goodwill recorded in the first quarter of 2020. The $93.6 million impairment is related to our Canada reporting unit and is included in Impairment expense on the statements of operations.

 

(c)

In the second quarter of 2020, we recorded $4.7 million of income associated with the settlement of a representations and warranties claim related to the Noralta acquisition, which is included in Other income 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,

 

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

 

Net Cash Flows Provided by Operating Activities

 

$

25,293

 

 

$

36,686

 

 

$

88,534

 

 

$

117,361

 

Capital expenditures

 

 

(5,926

)

 

 

(3,839

)

 

 

(15,571

)

 

 

(10,083

)

Proceeds from disposition of property, plant and equipment

 

 

6,761

 

 

 

354

 

 

 

14,306

 

 

 

3,690

 

Free Cash Flow

 

$

26,128

 

 

$

33,201

 

 

$

87,269

 

 

$

110,968

 

CIVEO CORPORATION

NON-GAAP RECONCILIATIONS - GUIDANCE

(in millions)

(unaudited

 

 

 

YEAR ENDING
DECEMBER 31, 2022

EBITDA Range (1)

 

$

90.0

 

$

95.0

(1)

The following table sets forth a reconciliation of estimated 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
DECEMBER 31, 2022

 

 

(estimated)

 

 

 

 

 

Net loss

 

$

(8.5

)

 

$

(3.5

)

Income tax provision

 

 

8.5

 

 

 

8.5

 

Depreciation and amortization

 

 

80.0

 

 

 

80.0

 

Interest expense

 

 

10.0

 

 

 

10.0

 

EBITDA

 

$

90.0

 

 

$

95.0

 

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

 

TWELVE MONTHS ENDED

DECEMBER 31,

DECEMBER 31,

 

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

 

Supplemental Operating Data - Canadian Segment

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

Accommodation revenue (1)

 

$

62,726

 

$

46,466

 

$

239,526

 

$

202,534

Mobile facility rental revenue (2)

 

 

24,616

 

 

11,477

 

 

62,856

 

 

33,192

Food and other services revenue (3)

 

 

4,813

 

 

7,587

 

 

18,996

 

 

33,923

Total Canadian revenues

 

$

92,155

 

$

65,530

 

$

321,378

 

$

269,649

 

 

 

 

 

 

 

 

 

Costs

 

 

 

 

 

 

 

 

Accommodation cost

 

$

45,273

 

$

34,070

 

$

170,071

 

$

143,213

Mobile facility rental cost

 

 

15,009

 

 

7,743

 

 

38,571

 

 

24,842

Food and other services cost

 

 

4,167

 

 

6,843

 

 

16,750

 

 

30,616

Indirect other cost

 

 

2,529

 

 

2,497

 

 

10,027

 

 

10,612

Total Canadian cost of sales and services

 

$

66,978

 

$

51,153

 

$

235,419

 

$

209,283

 

 

 

 

 

 

 

 

 

Average daily rates (4)

 

$

106

 

$

98

 

$

99

 

$

95

 

 

 

 

 

 

 

 

 

Billed rooms (5)

 

 

588,473

 

 

469,116

 

 

2,404,880

 

 

2,095,784

 

 

 

 

 

 

 

 

 

Canadian dollar to U.S. dollar

 

$

0.794

 

$

0.768

 

$

0.798

 

$

0.746

 

 

 

 

 

 

 

 

 

Supplemental Operating Data - Australian Segment

 

 

 

 

 

 

 

 

Accommodation revenue (1)

 

$

35,776

 

$

37,082

 

$

145,335

 

$

144,070

Food and other services revenue (3)

 

 

26,524

 

 

26,591

 

 

105,739

 

 

90,472

Total Australian revenues

 

$

62,300

 

$

63,673

 

$

251,074

 

$

234,542

 

 

 

 

 

 

 

 

 

Costs

 

 

 

 

 

 

 

 

Accommodation cost

 

$

18,012

 

$

16,839

 

$

71,550

 

$

63,504

Food and other services cost

 

 

25,011

 

 

23,731

 

 

100,469

 

 

77,358

Indirect other cost

 

 

1,947

 

 

1,144

 

 

7,123

 

 

3,847

Total Australian cost of sales and services

 

$

44,970

 

$

41,714

 

$

179,142

 

$

144,709

 

 

 

 

 

 

 

 

 

Average daily rates (4)

 

$

77

 

$

77

 

$

79

 

$

73

 

 

 

 

 

 

 

 

 

Billed rooms (5)

 

 

464,700

 

 

480,465

 

 

1,846,882

 

 

1,968,284

 

 

 

 

 

 

 

 

 

Australian dollar to U.S. dollar

 

$

0.729

 

$

0.731

 

$

0.752

 

$

0.691

(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.

 

Carolyn J. Stone
Civeo Corporation
Senior Vice President & Chief Financial Officer
713-510-2400

Source: Civeo Corporation