cveo-20220930
0001590584--12-312022Q3falseP3MP1YP1YP3YP3Y00015905842022-01-012022-09-3000015905842022-10-21xbrli:shares0001590584cveo:ServiceAndOtherMember2022-07-012022-09-30iso4217:USD0001590584cveo:ServiceAndOtherMember2021-07-012021-09-300001590584cveo:ServiceAndOtherMember2022-01-012022-09-300001590584cveo:ServiceAndOtherMember2021-01-012021-09-300001590584cveo:MobileFacilityRentalMember2022-07-012022-09-300001590584cveo:MobileFacilityRentalMember2021-07-012021-09-300001590584cveo:MobileFacilityRentalMember2022-01-012022-09-300001590584cveo:MobileFacilityRentalMember2021-01-012021-09-300001590584us-gaap:ProductMember2022-07-012022-09-300001590584us-gaap:ProductMember2021-07-012021-09-300001590584us-gaap:ProductMember2022-01-012022-09-300001590584us-gaap:ProductMember2021-01-012021-09-3000015905842022-07-012022-09-3000015905842021-07-012021-09-3000015905842021-01-012021-09-30iso4217:USDxbrli:shares00015905842022-09-3000015905842021-12-310001590584us-gaap:PreferredStockMember2021-06-300001590584us-gaap:AdditionalPaidInCapitalMember2021-06-300001590584us-gaap:RetainedEarningsMember2021-06-300001590584us-gaap:TreasuryStockCommonMember2021-06-300001590584us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001590584us-gaap:NoncontrollingInterestMember2021-06-3000015905842021-06-300001590584us-gaap:RetainedEarningsMember2021-07-012021-09-300001590584us-gaap:NoncontrollingInterestMember2021-07-012021-09-300001590584us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001590584us-gaap:PreferredStockMember2021-07-012021-09-300001590584us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001590584us-gaap:PreferredStockMember2021-09-300001590584us-gaap:AdditionalPaidInCapitalMember2021-09-300001590584us-gaap:RetainedEarningsMember2021-09-300001590584us-gaap:TreasuryStockCommonMember2021-09-300001590584us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001590584us-gaap:NoncontrollingInterestMember2021-09-3000015905842021-09-300001590584us-gaap:PreferredStockMember2022-06-300001590584us-gaap:AdditionalPaidInCapitalMember2022-06-300001590584us-gaap:RetainedEarningsMember2022-06-300001590584us-gaap:TreasuryStockCommonMember2022-06-300001590584us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001590584us-gaap:NoncontrollingInterestMember2022-06-3000015905842022-06-300001590584us-gaap:RetainedEarningsMember2022-07-012022-09-300001590584us-gaap:NoncontrollingInterestMember2022-07-012022-09-300001590584us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001590584us-gaap:PreferredStockMember2022-07-012022-09-300001590584us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001590584us-gaap:PreferredStockMember2022-09-300001590584us-gaap:AdditionalPaidInCapitalMember2022-09-300001590584us-gaap:RetainedEarningsMember2022-09-300001590584us-gaap:TreasuryStockCommonMember2022-09-300001590584us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001590584us-gaap:NoncontrollingInterestMember2022-09-300001590584us-gaap:PreferredStockMember2020-12-310001590584us-gaap:AdditionalPaidInCapitalMember2020-12-310001590584us-gaap:RetainedEarningsMember2020-12-310001590584us-gaap:TreasuryStockCommonMember2020-12-310001590584us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001590584us-gaap:NoncontrollingInterestMember2020-12-3100015905842020-12-310001590584us-gaap:RetainedEarningsMember2021-01-012021-09-300001590584us-gaap:NoncontrollingInterestMember2021-01-012021-09-300001590584us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-300001590584us-gaap:PreferredStockMember2021-01-012021-09-300001590584us-gaap:AdditionalPaidInCapitalMember2021-01-012021-09-300001590584us-gaap:TreasuryStockCommonMember2021-01-012021-09-300001590584us-gaap:PreferredStockMember2021-12-310001590584us-gaap:AdditionalPaidInCapitalMember2021-12-310001590584us-gaap:RetainedEarningsMember2021-12-310001590584us-gaap:TreasuryStockCommonMember2021-12-310001590584us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001590584us-gaap:NoncontrollingInterestMember2021-12-310001590584us-gaap:RetainedEarningsMember2022-01-012022-09-300001590584us-gaap:NoncontrollingInterestMember2022-01-012022-09-300001590584us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300001590584us-gaap:PreferredStockMember2022-01-012022-09-300001590584us-gaap:AdditionalPaidInCapitalMember2022-01-012022-09-300001590584us-gaap:TreasuryStockCommonMember2022-01-012022-09-300001590584us-gaap:CommonStockMember2021-12-310001590584us-gaap:CommonStockMember2022-01-012022-09-300001590584us-gaap:CommonStockMember2022-09-30cveo:segment0001590584cveo:CanadaSegmentMembercveo:AccommodationMember2022-07-012022-09-300001590584cveo:CanadaSegmentMembercveo:AccommodationMember2021-07-012021-09-300001590584cveo:CanadaSegmentMembercveo:AccommodationMember2022-01-012022-09-300001590584cveo:CanadaSegmentMembercveo:AccommodationMember2021-01-012021-09-300001590584cveo:CanadaSegmentMembercveo:MobileFacilityRentalMember2022-07-012022-09-300001590584cveo:CanadaSegmentMembercveo:MobileFacilityRentalMember2021-07-012021-09-300001590584cveo:CanadaSegmentMembercveo:MobileFacilityRentalMember2022-01-012022-09-300001590584cveo:CanadaSegmentMembercveo:MobileFacilityRentalMember2021-01-012021-09-300001590584cveo:CanadaSegmentMembercveo:FoodServiceAndOtherServiceRevenueMember2022-07-012022-09-300001590584cveo:CanadaSegmentMembercveo:FoodServiceAndOtherServiceRevenueMember2021-07-012021-09-300001590584cveo:CanadaSegmentMembercveo:FoodServiceAndOtherServiceRevenueMember2022-01-012022-09-300001590584cveo:CanadaSegmentMembercveo:FoodServiceAndOtherServiceRevenueMember2021-01-012021-09-300001590584cveo:CanadaSegmentMember2022-07-012022-09-300001590584cveo:CanadaSegmentMember2021-07-012021-09-300001590584cveo:CanadaSegmentMember2022-01-012022-09-300001590584cveo:CanadaSegmentMember2021-01-012021-09-300001590584cveo:AustraliaSegmentMembercveo:AccommodationMember2022-07-012022-09-300001590584cveo:AustraliaSegmentMembercveo:AccommodationMember2021-07-012021-09-300001590584cveo:AustraliaSegmentMembercveo:AccommodationMember2022-01-012022-09-300001590584cveo:AustraliaSegmentMembercveo:AccommodationMember2021-01-012021-09-300001590584cveo:AustraliaSegmentMembercveo:FoodServiceAndOtherServiceRevenueMember2022-07-012022-09-300001590584cveo:AustraliaSegmentMembercveo:FoodServiceAndOtherServiceRevenueMember2021-07-012021-09-300001590584cveo:AustraliaSegmentMembercveo:FoodServiceAndOtherServiceRevenueMember2022-01-012022-09-300001590584cveo:AustraliaSegmentMembercveo:FoodServiceAndOtherServiceRevenueMember2021-01-012021-09-300001590584cveo:AustraliaSegmentMember2022-07-012022-09-300001590584cveo:AustraliaSegmentMember2021-07-012021-09-300001590584cveo:AustraliaSegmentMember2022-01-012022-09-300001590584cveo:AustraliaSegmentMember2021-01-012021-09-300001590584cveo:AccommodationMembercveo:UnitedStatesSegmentMember2022-07-012022-09-300001590584cveo:AccommodationMembercveo:UnitedStatesSegmentMember2021-07-012021-09-300001590584cveo:AccommodationMembercveo:UnitedStatesSegmentMember2022-01-012022-09-300001590584cveo:AccommodationMembercveo:UnitedStatesSegmentMember2021-01-012021-09-300001590584cveo:MobileFacilityRentalMembercveo:UnitedStatesSegmentMember2022-07-012022-09-300001590584cveo:MobileFacilityRentalMembercveo:UnitedStatesSegmentMember2021-07-012021-09-300001590584cveo:MobileFacilityRentalMembercveo:UnitedStatesSegmentMember2022-01-012022-09-300001590584cveo:MobileFacilityRentalMembercveo:UnitedStatesSegmentMember2021-01-012021-09-300001590584cveo:ManufacturingMembercveo:UnitedStatesSegmentMember2022-07-012022-09-300001590584cveo:ManufacturingMembercveo:UnitedStatesSegmentMember2021-07-012021-09-300001590584cveo:ManufacturingMembercveo:UnitedStatesSegmentMember2022-01-012022-09-300001590584cveo:ManufacturingMembercveo:UnitedStatesSegmentMember2021-01-012021-09-300001590584cveo:FoodServiceAndOtherServiceRevenueMembercveo:UnitedStatesSegmentMember2022-07-012022-09-300001590584cveo:FoodServiceAndOtherServiceRevenueMembercveo:UnitedStatesSegmentMember2021-07-012021-09-300001590584cveo:FoodServiceAndOtherServiceRevenueMembercveo:UnitedStatesSegmentMember2022-01-012022-09-300001590584cveo:FoodServiceAndOtherServiceRevenueMembercveo:UnitedStatesSegmentMember2021-01-012021-09-300001590584cveo:UnitedStatesSegmentMember2022-07-012022-09-300001590584cveo:UnitedStatesSegmentMember2021-07-012021-09-300001590584cveo:UnitedStatesSegmentMember2022-01-012022-09-300001590584cveo:UnitedStatesSegmentMember2021-01-012021-09-3000015905842022-10-012022-09-3000015905842023-01-012022-09-3000015905842024-01-012022-09-3000015905842025-01-012022-09-300001590584cveo:AustraliaSegmentMember2021-04-012021-06-300001590584cveo:AustraliaSegmentMember2021-06-300001590584us-gaap:TradeAccountsReceivableMember2022-09-300001590584us-gaap:TradeAccountsReceivableMember2021-12-310001590584cveo:UnbilledRevenueMember2022-09-300001590584cveo:UnbilledRevenueMember2021-12-310001590584cveo:OtherReceivableMember2022-09-300001590584cveo:OtherReceivableMember2021-12-310001590584us-gaap:LandMember2022-09-300001590584us-gaap:LandMember2021-12-310001590584cveo:AccommodationsAssetsMembersrt:MinimumMember2022-01-012022-09-300001590584cveo:AccommodationsAssetsMembersrt:MaximumMember2022-01-012022-09-300001590584cveo:AccommodationsAssetsMember2022-09-300001590584cveo:AccommodationsAssetsMember2021-12-310001590584us-gaap:BuildingAndBuildingImprovementsMembersrt:MinimumMember2022-01-012022-09-300001590584srt:MaximumMemberus-gaap:BuildingAndBuildingImprovementsMember2022-01-012022-09-300001590584us-gaap:BuildingAndBuildingImprovementsMember2022-09-300001590584us-gaap:BuildingAndBuildingImprovementsMember2021-12-310001590584us-gaap:MachineryAndEquipmentMembersrt:MinimumMember2022-01-012022-09-300001590584us-gaap:MachineryAndEquipmentMembersrt:MaximumMember2022-01-012022-09-300001590584us-gaap:MachineryAndEquipmentMember2022-09-300001590584us-gaap:MachineryAndEquipmentMember2021-12-310001590584us-gaap:FurnitureAndFixturesMembersrt:MinimumMember2022-01-012022-09-300001590584srt:MaximumMemberus-gaap:FurnitureAndFixturesMember2022-01-012022-09-300001590584us-gaap:FurnitureAndFixturesMember2022-09-300001590584us-gaap:FurnitureAndFixturesMember2021-12-310001590584us-gaap:VehiclesMembersrt:MinimumMember2022-01-012022-09-300001590584srt:MaximumMemberus-gaap:VehiclesMember2022-01-012022-09-300001590584us-gaap:VehiclesMember2022-09-300001590584us-gaap:VehiclesMember2021-12-310001590584us-gaap:ConstructionInProgressMember2022-09-300001590584us-gaap:ConstructionInProgressMember2021-12-310001590584us-gaap:EmployeeStockOptionMember2021-07-012021-09-300001590584us-gaap:EmployeeStockOptionMember2021-01-012021-09-300001590584cveo:PreferredSharesMember2022-07-012022-09-300001590584cveo:PreferredSharesMember2021-07-012021-09-300001590584cveo:PreferredSharesMember2022-01-012022-09-300001590584cveo:PreferredSharesMember2021-01-012021-09-300001590584us-gaap:EmployeeStockOptionMember2022-07-012022-09-300001590584us-gaap:EmployeeStockOptionMember2022-01-012022-09-300001590584cveo:CanadianTermLoanMember2022-09-30xbrli:pure0001590584cveo:CanadianTermLoanMember2021-12-310001590584cveo:USRevolvingCreditFacilityMember2022-01-012022-09-300001590584cveo:USRevolvingCreditFacilityMember2022-09-300001590584cveo:USRevolvingCreditFacilityMember2021-12-310001590584cveo:CanadianCreditFacilityMember2022-01-012022-09-300001590584cveo:CanadianCreditFacilityMember2022-09-300001590584cveo:CanadianCreditFacilityMember2021-12-310001590584cveo:AustralianCreditFacilityMember2022-01-012022-09-300001590584cveo:AustralianCreditFacilityMember2022-09-300001590584cveo:AustralianCreditFacilityMember2021-12-310001590584cveo:SyndicatedFacilityAgreementMemberus-gaap:RevolvingCreditFacilityMember2022-09-300001590584cveo:SyndicatedFacilityAgreementMembercveo:RevolvingCreditFacilityUSSubsidiariesMember2022-09-300001590584cveo:SyndicatedFacilityAgreementMembercveo:RevolvingCreditFacilityCanadianSubsidiariesMember2022-09-300001590584cveo:SyndicatedFacilityAgreementMembercveo:RevolvingCreditFacilityAustralianSubsidiariesMember2022-09-300001590584cveo:SyndicatedFacilityAgreementMembercveo:USTermLoanMember2022-09-30iso4217:CAD0001590584cveo:ThirdAmendmentToTheCreditAgreementMembercveo:EurodollarBBSYAndUSBaseRateMembersrt:MinimumMember2022-01-012022-09-300001590584cveo:ThirdAmendmentToTheCreditAgreementMembersrt:MaximumMembercveo:EurodollarBBSYAndUSBaseRateMember2022-01-012022-09-300001590584cveo:ABRLoansCanadianPrimeRateLoansAndUSBaseRateLoansMembercveo:ThirdAmendmentToTheCreditAgreementMembersrt:MinimumMember2022-01-012022-09-300001590584cveo:ABRLoansCanadianPrimeRateLoansAndUSBaseRateLoansMembercveo:ThirdAmendmentToTheCreditAgreementMembersrt:MaximumMember2022-01-012022-09-300001590584cveo:ThirdAmendmentToTheCreditAgreementMember2022-01-012022-09-300001590584cveo:ThirdAmendmentToTheCreditAgreementMembersrt:MaximumMember2022-01-012022-09-300001590584cveo:ThirdAmendmentToTheCreditAgreementMembersrt:MinimumMember2022-01-012022-09-300001590584cveo:AmendedCreditFacilityMember2022-09-30cveo:lender0001590584cveo:AmendedCreditFacilityMembersrt:MinimumMember2022-09-300001590584srt:MaximumMembercveo:AmendedCreditFacilityMember2022-09-300001590584cveo:AmendedCreditFacilityMembercveo:RevolvingCreditFacilityUSSubsidiariesMember2022-09-300001590584cveo:AmendedCreditFacilityMembercveo:RevolvingCreditFacilityAustralianSubsidiariesMember2022-09-300001590584cveo:RevolvingCreditFacilityCanadianSubsidiariesMembercveo:AmendedCreditFacilityMember2022-09-300001590584cveo:BankGuaranteeFacilityMember2022-09-30iso4217:AUDcveo:jurisdiction0001590584srt:MinimumMember2022-09-300001590584srt:MaximumMember2022-09-3000015905842021-08-3100015905842021-08-012021-08-3100015905842022-08-3100015905842022-08-012022-08-310001590584cveo:ShareRepurchaseProgramTrancheOneMember2022-01-012022-09-300001590584cveo:ShareRepurchaseProgramTrancheTwoMember2022-01-012022-09-300001590584cveo:ShareRepurchaseProgramShareholderRepurchasesMember2022-07-012022-09-300001590584cveo:RestrictedStockAndDeferredStockAwardsMember2022-05-182022-05-180001590584cveo:RestrictedStockAndDeferredStockAwardsMember2022-07-012022-09-300001590584cveo:RestrictedStockAndDeferredStockAwardsMember2021-07-012021-09-300001590584cveo:RestrictedStockAndDeferredStockAwardsMember2022-01-012022-09-300001590584cveo:RestrictedStockAndDeferredStockAwardsMember2021-01-012021-09-300001590584cveo:RestrictedStockAndDeferredStockAwardsMember2022-09-300001590584us-gaap:PhantomShareUnitsPSUsMembercveo:CiveoPlanMember2022-02-252022-02-250001590584cveo:CanadianLongTermIncentivePlanMemberus-gaap:PhantomShareUnitsPSUsMember2022-02-252022-02-250001590584us-gaap:PhantomShareUnitsPSUsMember2022-07-012022-09-300001590584us-gaap:PhantomShareUnitsPSUsMember2021-07-012021-09-300001590584us-gaap:PhantomShareUnitsPSUsMember2022-01-012022-09-300001590584us-gaap:PhantomShareUnitsPSUsMember2021-01-012021-09-300001590584us-gaap:PhantomShareUnitsPSUsMember2022-09-300001590584us-gaap:PerformanceSharesMembercveo:CiveoPlanMember2022-02-252022-02-250001590584us-gaap:PerformanceSharesMembersrt:MinimumMembercveo:CiveoPlanMember2022-02-252022-02-250001590584srt:MaximumMemberus-gaap:PerformanceSharesMembercveo:CiveoPlanMember2022-02-252022-02-250001590584us-gaap:PerformanceSharesMember2022-02-25cveo:company0001590584us-gaap:PerformanceSharesMember2022-07-012022-09-300001590584us-gaap:PerformanceSharesMember2021-07-012021-09-300001590584us-gaap:PerformanceSharesMember2022-01-012022-09-300001590584us-gaap:PerformanceSharesMember2021-01-012021-09-300001590584us-gaap:PerformanceSharesMember2022-09-300001590584cveo:CanadaSegmentMemberus-gaap:OperatingSegmentsMember2022-07-012022-09-300001590584cveo:CanadaSegmentMemberus-gaap:OperatingSegmentsMember2022-09-300001590584cveo:AustraliaSegmentMemberus-gaap:OperatingSegmentsMember2022-07-012022-09-300001590584cveo:AustraliaSegmentMemberus-gaap:OperatingSegmentsMember2022-09-300001590584us-gaap:OperatingSegmentsMembercveo:UnitedStatesSegmentMember2022-07-012022-09-300001590584us-gaap:OperatingSegmentsMembercveo:UnitedStatesSegmentMember2022-09-300001590584us-gaap:CorporateNonSegmentMember2022-07-012022-09-300001590584us-gaap:CorporateNonSegmentMember2022-09-300001590584cveo:CanadaSegmentMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300001590584cveo:CanadaSegmentMemberus-gaap:OperatingSegmentsMember2021-09-300001590584cveo:AustraliaSegmentMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300001590584cveo:AustraliaSegmentMemberus-gaap:OperatingSegmentsMember2021-09-300001590584us-gaap:OperatingSegmentsMembercveo:UnitedStatesSegmentMember2021-07-012021-09-300001590584us-gaap:OperatingSegmentsMembercveo:UnitedStatesSegmentMember2021-09-300001590584us-gaap:CorporateNonSegmentMember2021-07-012021-09-300001590584us-gaap:CorporateNonSegmentMember2021-09-300001590584cveo:CanadaSegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-09-300001590584cveo:AustraliaSegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-09-300001590584us-gaap:OperatingSegmentsMembercveo:UnitedStatesSegmentMember2022-01-012022-09-300001590584us-gaap:CorporateNonSegmentMember2022-01-012022-09-300001590584cveo:CanadaSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300001590584cveo:AustraliaSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300001590584us-gaap:OperatingSegmentsMembercveo:UnitedStatesSegmentMember2021-01-012021-09-300001590584us-gaap:CorporateNonSegmentMember2021-01-012021-09-30


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
  
 For the transition period from _________________________ to _________________________
Commission file number: 001-36246
Civeo Corporation
(Exact name of registrant as specified in its charter)
British Columbia, Canada98-1253716
(State or other jurisdiction of(I.R.S. Employer
incorporation or organization)Identification No.)
  
Three Allen Center, 333 Clay Street, Suite 4980,
77002
Houston, Texas
(Zip Code)
(Address of principal executive offices) 
(713) 510-2400
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common Shares, no par valueCVEONew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ☒No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
YesNo
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "accelerated filer," "large accelerated filer," "smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated FilerAccelerated Filer
 
Emerging Growth Company
 
   
Non-Accelerated Filer Smaller Reporting Company
 
 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).




YesNo

The Registrant had 13,712,661 common shares outstanding as of October 21, 2022.




CIVEO CORPORATION
INDEX
Page No.
Part I -- FINANCIAL INFORMATION
Item 1. Financial Statements:
Consolidated Financial Statements
Unaudited Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2022 and 2021
Unaudited Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2022 and 2021
Consolidated Balance Sheets – as of September 30, 2022 (unaudited) and December 31, 2021
Unaudited Consolidated Statements of Changes in Shareholders’ Equity for the Three and Nine Months Ended September 30, 2022 and 2021
Unaudited Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2022 and 2021
Notes to Unaudited Consolidated Financial Statements
Cautionary Statement Regarding Forward-Looking Statements
Item 2.   Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 3.   Quantitative and Qualitative Disclosures About Market Risk
Item 4.   Controls and Procedures
Part II -- OTHER INFORMATION
Item 1.     Legal Proceedings
Item 1A.  Risk Factors
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds
Item 6.     Exhibits
(a) Index of Exhibits
Signature Page

3



PART I -- FINANCIAL INFORMATION
ITEM 1. Financial Statements

CIVEO CORPORATION
 
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
 
Three Months Ended
September 30,
Nine Months Ended
September 30,
 2022202120222021
Revenues:    
Service and other$177,504 $150,081 $514,328 $419,861 
Rental5,785 4,581 18,080 12,185 
Product938 401 2,451 2,623 
 184,227 155,063 534,859 434,669 
Costs and expenses:
Service and other costs127,955 107,287 373,123 307,198 
Rental costs5,024 3,892 14,830 10,523 
Product costs517 251 1,439 1,521 
Selling, general and administrative expenses17,677 17,320 50,572 46,204 
Depreciation and amortization expense22,608 20,282 65,818 62,928 
Impairment expense   7,935 
Other operating (income) expense (339)21 (187)122 
173,442 149,053 505,595 436,431 
Operating income (loss)10,785 6,010 29,264 (1,762)
Interest expense(3,001)(3,166)(8,077)(9,929)
Loss on extinguishment of debt (416) (416)
Interest income13  15 2 
Other income2,179 364 4,290 6,066 
Income (loss) before income taxes9,976 2,792 25,492 (6,039)
Income tax expense(3,713)(1,770)(7,091)(2,354)
Net income (loss)6,263 1,022 18,401 (8,393)
Less: Net income attributable to noncontrolling interest546 478 1,706 534 
Net income (loss) attributable to Civeo Corporation5,717 544 16,695 (8,927)
Less: Dividends attributable to Class A preferred shares492 482 1,469 1,440 
Net income (loss) attributable to Civeo common shareholders$5,225 $62 $15,226 $(10,367)
Per Share Data (see Note 7)
Basic net income (loss) per share attributable to Civeo Corporation common shareholders$0.32 $ $0.92 $(0.73)
Diluted net income (loss) per share attributable to Civeo Corporation common shareholders$0.32 $ $0.91 $(0.73)
Weighted average number of common shares outstanding:
Basic13,932 14,277 14,058 14,255 
Diluted14,064 14,361 14,220 14,255 

The accompanying notes are an integral part of these financial statements.

4



CIVEO CORPORATION
 
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In Thousands)
 
Three Months Ended
September 30,
Nine Months Ended
September 30,
 2022202120222021
Net income (loss)$6,263 $1,022 $18,401 $(8,393)
Other comprehensive loss, net of taxes:
Foreign currency translation adjustment, net of zero taxes
(20,745)(12,217)(32,757)(15,417)
Total other comprehensive loss, net of taxes(20,745)(12,217)(32,757)(15,417)
Comprehensive loss(14,482)(11,195)(14,356)(23,810)
Less: Comprehensive income attributable to noncontrolling interest368 450 1,474 488 
Comprehensive loss attributable to Civeo Corporation$(14,850)$(11,645)$(15,830)$(24,298)
The accompanying notes are an integral part of these financial statements.

5



CIVEO CORPORATION
 
CONSOLIDATED BALANCE SHEETS
(In Thousands, Excluding Share Amounts)
 September 30, 2022December 31, 2021
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents$8,361 $6,282 
Accounts receivable, net122,280 114,859 
Inventories6,984 6,468 
Prepaid expenses9,487 6,876 
Other current assets3,850 10,946 
Assets held for sale13,759 11,762 
Total current assets164,721 157,193 
Property, plant and equipment, net309,752 389,996 
Goodwill7,322 8,204 
Other intangible assets, net81,997 93,642 
Operating lease right-of-use assets14,267 18,327 
Other noncurrent assets5,270 5,372 
Total assets$583,329 $672,734 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable$46,225 $49,321 
Accrued liabilities32,432 33,564 
Income taxes111 171 
Current portion of long-term debt27,964 30,576 
Deferred revenue2,092 18,479 
Other current liabilities8,900 4,807 
Total current liabilities117,724 136,918 
Long-term debt, less current maturities96,727 142,602 
Deferred income taxes7,344 896 
Operating lease liabilities11,669 15,429 
Other noncurrent liabilities13,668 13,778 
Total liabilities247,132 309,623 
Commitments and contingencies (Note 10)
Shareholders’ Equity:
Preferred shares (Class A Series 1, no par value; 50,000,000 shares authorized, 9,042 shares issued and outstanding, aggregate liquidation preference of $98,907,587 and $97,438,687 as of September 30, 2022 and December 31, 2021, respectively)
63,410 61,941 
Common shares (no par value; 46,000,000 shares authorized, 14,079,336 shares and 14,431,819 shares issued, respectively, and 13,712,661 shares and 14,111,221 shares outstanding, respectively)
  
Additional paid-in capital1,585,303 1,582,442 
Accumulated deficit(911,934)(912,951)
Common shares held in treasury at cost, 366,675 and 320,598 shares, respectively
(9,063)(8,050)
Accumulated other comprehensive loss(394,408)(361,883)
Total Civeo Corporation shareholders’ equity333,308 361,499 
Noncontrolling interest2,889 1,612 
Total shareholders’ equity336,197 363,111 
Total liabilities and shareholders’ equity$583,329 $672,734 

The accompanying notes are an integral part of these financial statements.
6



CIVEO CORPORATION
 
UNAUDITED CONSOLIDATED STATEMENTS OF
CHANGES IN SHAREHOLDERS’ EQUITY
(In Thousands)
 
Attributable to Civeo
Preferred
Shares
Common
Shares
AmountPar ValueAdditional
Paid-in
Capital
Accumulated
Deficit
Treasury
Shares
Accumulated
Other
Comprehensive
Income (Loss)
Noncontrolling
Interest
Total
Shareholders’
Equity
Balance, June 30, 2021$60,974 $ $1,580,213 $(918,156)$(8,050)$(352,171)$595 $363,405 
Net income— — — 544 — — 478 1,022 
Currency translation adjustment— — — — — (12,189)(28)(12,217)
Dividends paid— — — — — — (15)(15)
Dividends attributable to Class A preferred shares482 — — (482)— — —  
Common shares repurchased— — — (445)— — — (445)
Share-based compensation— — 1,035 — — — — 1,035 
Balance, September 30, 2021$61,456 $ $1,581,248 $(918,539)$(8,050)$(364,360)$1,030 $352,785 
Balance, June 30, 2022$62,918 $ $1,584,416 $(903,492)$(9,063)$(373,841)$2,582 $363,520 
Net income — — — 5,717 — — 546 6,263 
Currency translation adjustment— — — — — (20,567)(178)(20,745)
Dividends paid— — — — — — (61)(61)
Dividends attributable to Class A preferred shares492 — — (492)— — —  
Common shares repurchased— — — (13,667)— — — (13,667)
Share-based compensation— — 887 — — — — 887 
Balance, September 30, 2022$63,410 $ $1,585,303 $(911,934)$(9,063)$(394,408)$2,889 $336,197 
Balance, December 31, 2020$60,016 $ $1,578,315 $(907,727)$(6,930)$(348,989)$672 $375,357 
Net income (loss)— — — (8,927)— — 534 (8,393)
Currency translation adjustment— — — — — (15,371)(46)(15,417)
Dividends paid— — — — — — (130)(130)
Dividends attributable to Class A preferred shares1,440 — — (1,440)— — —  
Common shares repurchased— — — (445)— — — (445)
Share-based compensation— — 2,933 — (1,120)— — 1,813 
Balance, September 30, 2021$61,456 $ $1,581,248 $(918,539)$(8,050)$(364,360)$1,030 $352,785 
Balance, December 31, 2021$61,941 $ $1,582,442 $(912,951)$(8,050)$(361,883)$1,612 $363,111 
Net income — — — 16,695 — — 1,706 18,401 
Currency translation adjustment— — — — — (32,525)(232)(32,757)
Dividends paid— — — — — — (197)(197)
Dividends attributable to Class A preferred shares1,469 — — (1,469)— — —  
Common shares repurchased— — — (14,209)— — — (14,209)
Share-based compensation— — 2,861 — (1,013)— — 1,848 
Balance, September 30, 2022$63,410 $ $1,585,303 $(911,934)$(9,063)$(394,408)$2,889 $336,197 
 Preferred
Shares
Common
Shares (in
thousands)
Balance, December 31, 20219,042 14,111 
Share-based compensation 100 
Common shares repurchased (498)
Balance, September 30, 20229,042 13,713 

The accompanying notes are an integral part of these financial statements.
7



CIVEO CORPORATION
 
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
 
Nine Months Ended
September 30,
 20222021
Cash flows from operating activities:  
Net income (loss)$18,401 $(8,393)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization65,818 62,928 
Impairment charges 7,935 
Loss on extinguishment of debt 416 
Deferred income tax expense6,930 2,105 
Non-cash compensation charge2,861 2,933 
Gains on disposals of assets(4,069)(2,305)
Provision (benefit) for credit losses, net of recoveries(23)155 
Other, net2,397 2,436 
Changes in operating assets and liabilities:
Accounts receivable(19,138)(21,516)
Inventories(1,557)(193)
Accounts payable and accrued liabilities3,515 9,836 
Taxes payable(62)61 
Other current and noncurrent assets and liabilities, net(12,701)6,843 
Net cash flows provided by operating activities62,372 63,241 
Cash flows from investing activities:
Capital expenditures(17,466)(9,645)
Proceeds from dispositions of property, plant and equipment11,975 7,545 
Other, net190  
Net cash flows used in investing activities(5,301)(2,100)
Cash flows from financing activities:
Revolving credit borrowings204,951 367,622 
Revolving credit repayments(219,775)(305,148)
Term loan repayments(23,059)(117,595)
Debt issuance costs (4,407)
Repurchases of common shares(14,209)(445)
Taxes paid on vested shares(1,013)(1,120)
Net cash flows used in financing activities(53,105)(61,093)
Effect of exchange rate changes on cash(1,887)(1,255)
Net change in cash and cash equivalents2,079 (1,207)
Cash and cash equivalents, beginning of period6,282 6,155 
Cash and cash equivalents, end of period$8,361 $4,948 
Non-cash financing activities:
Preferred dividends paid-in-kind$1,469 $1,440 
The accompanying notes are an integral part of these financial statements.

8

CIVEO CORPORATION
 
NOTES TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS



1.DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
 
Description of the Business
 
We provide hospitality services to the natural resources industry in Canada, Australia and the U.S. Our full suite of hospitality services for our guests includes lodging, catering and food service, housekeeping and maintenance at accommodation facilities that we or our customers own. In many cases, we provide services that support the day-to-day operations, such as laundry, facility management and maintenance, water and wastewater treatment, power generation, communication systems, security and logistics. We also offer development activities for workforce accommodation facilities, including site selection, permitting, engineering and design, manufacturing management and site construction, along with providing hospitality services once the facility is constructed. We primarily operate in some of the world’s most active oil, metallurgical (met) coal, liquefied natural gas (LNG) and iron ore producing regions, and our customers include major and independent oil companies, mining companies, engineering companies and oilfield and mining service companies. We operate in three principal reportable business segments – Canada, Australia and the U.S.

Basis of Presentation
 
Unless otherwise stated or the context otherwise indicates: (i) all references in these consolidated financial statements to “Civeo,” “us,” “our” or “we” refer to Civeo Corporation and its consolidated subsidiaries; and (ii) all references in this report to “dollars” or “$” are to U.S. dollars.
 
The accompanying unaudited consolidated financial statements of Civeo have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC) pertaining to interim financial information. Certain information in footnote disclosures normally included in financial statements prepared in accordance with Generally Accepted Accounting Principles (GAAP) has been condensed or omitted pursuant to those rules and regulations. The unaudited financial statements included in this report reflect all the adjustments, consisting of normal recurring adjustments, which Civeo considers necessary for a fair presentation of the results of operations for the interim periods covered and for the financial condition of Civeo at the date of the interim balance sheet. Results for the interim periods are not necessarily indicative of results for the full year.
 
The preparation of consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. If the underlying estimates and assumptions upon which the financial statements are based change in future periods, actual amounts may differ from those included in the accompanying consolidated financial statements.
 
The financial statements included in this report should be read in conjunction with our audited financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2021.

9

CIVEO CORPORATION
 
NOTES TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
2.REVENUE
 
The following table disaggregates our revenue by our three reportable segments: Canada, Australia and the U.S., and major categories for the periods indicated (in thousands):
Three Months Ended
September 30,
Nine Months Ended
September 30,
 2022202120222021
Canada    
Accommodation revenues$72,724 $60,511 $219,349 $176,800 
Mobile facility rental revenues25,283 19,075 73,359 38,240 
Food service and other services revenues5,002 4,471 15,276 14,183 
Total Canada revenues103,009 84,057 307,984 229,223 
Australia
Accommodation revenues$38,316 $38,104 $114,967 $109,559 
Food service and other services revenues35,489 27,014 90,187 79,215 
Total Australia revenues73,805 65,118 205,154 188,774 
U.S.
Accommodation revenues$990 $1,812 $2,244 $4,189 
Mobile facility rental revenues5,811 3,941 18,128 10,769 
Manufacturing revenues587 124 1,286 1,686 
Food service and other services revenues25 11 63 28 
Total U.S. revenues7,413 5,888 21,721 16,672 
Total revenues$184,227 $155,063 $534,859 $434,669 
 
Our payment terms vary by the type and location of our customer and the products or services offered. The time between invoicing and when our performance obligations are satisfied is not significant. Payment terms are generally within 30 days and in most cases do not extend beyond 60 days. We do not have significant financing components or significant payment terms.

As of September 30, 2022, for contracts that are greater than one year, the table below discloses the estimated revenues related to performance obligations that are unsatisfied (or partially unsatisfied) and when we expect to recognize the revenue. The table only includes revenue expected to be recognized from contracts where the quantity of service is certain (in thousands):
 For the years ending December 31,
 202220232024ThereafterTotal
Revenue expected to be recognized as of September 30, 2022$41,135 $86,433 $47,742 $297,488 $472,798 

We applied the practical expedient and do not disclose consideration for remaining performance obligations with an original expected duration of one year or less. In addition, we do not estimate revenues expected to be recognized related to unsatisfied performance obligations for contracts without minimum room commitments. The table above represents only a portion of our expected future consolidated revenues and it is not necessarily indicative of the expected trend in total revenues.


3.IMPAIRMENT CHARGES  
Quarter ended June 30, 2021. During the second quarter of 2021, we recorded impairment expense of $7.9 million related to various undeveloped land positions and related permitting costs in Australia. At June 30, 2021, we identified an impairment trigger related to certain of these properties due to the cancellation of a significant thermal coal project in Australia and our negative expectations related to other possible Australian thermal coal projects becoming viable in the near term. Accordingly, the assets were written down to their estimated fair value of $2.4 million.

10

CIVEO CORPORATION
NOTES TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
4.FAIR VALUE MEASUREMENTS
 
Our financial instruments consist of cash and cash equivalents, receivables, payables and debt instruments. We believe that the carrying values of these instruments on the accompanying consolidated balance sheets approximate their fair values.
 
As of September 30, 2022 and December 31, 2021, we believe the carrying value of our floating-rate debt outstanding under our term loans and revolving credit facilities approximates fair value because the terms include short-term interest rates and exclude penalties for prepayment. We estimated the fair value of our floating-rate term loan and revolving credit facilities using significant other observable inputs, representative of a Level 2 fair value measurement, including terms and credit spreads for these loans. In addition, the estimated fair value of our assets held for sale is based upon Level 2 fair value measurements, which include appraisals and previous negotiations with third parties.

During the second quarter of 2021, we wrote down certain long-lived assets to fair value. Our estimate of the fair value of undeveloped land positions in Australia that were impaired was based on appraisals from third parties.

See Note 3 – Impairment Charges for further information.

5.DETAILS OF SELECTED BALANCE SHEET ACCOUNTS
 
Additional information regarding selected balance sheet accounts at September 30, 2022 and December 31, 2021 is presented below (in thousands):
 
 September 30, 2022December 31, 2021
Accounts receivable, net:  
Trade$69,833 $75,740 
Unbilled revenue51,567 38,508 
Other1,184 972 
Total accounts receivable122,584 115,220 
Allowance for credit losses(304)(361)
Total accounts receivable, net$122,280 $114,859 

 September 30, 2022December 31, 2021
Inventories:  
Finished goods and purchased products$5,586 $5,346 
Work in process 25 
Raw materials1,398 1,097 
Total inventories$6,984 $6,468 

 Estimated
Useful Life
(in years)
September 30, 2022December 31, 2021
Property, plant and equipment, net:     
Land   $25,896 $30,556 
Accommodations assets3151,426,704 1,657,577 
Buildings and leasehold improvements72017,260 24,335 
Machinery and equipment41510,752 14,983 
Office furniture and equipment3761,187 63,228 
Vehicles358,227 14,578 
Construction in progress   9,444 2,063 
Total property, plant and equipment   1,559,470 1,807,320 
Accumulated depreciation   (1,249,718)(1,417,324)
Total property, plant and equipment, net   $309,752 $389,996 
11

CIVEO CORPORATION
NOTES TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)

 September 30, 2022December 31, 2021
Accrued liabilities:  
Accrued compensation$27,577 $28,877 
Accrued taxes, other than income taxes2,901 2,944 
Other1,954 1,743 
Total accrued liabilities$32,432 $33,564 
 

September 30, 2022December 31, 2021
Deferred revenue:
Contract liabilities$2,092 $18,479 

Deferred revenue consists of contract liabilities resulting from upfront payments related to the mobilization of mobile assets to service pipeline projects in our Canadian business segment. The decrease in deferred revenue from December 31, 2021 to September 30, 2022 was primarily due to the recognition of deferred revenue over the contracted terms of these pipeline projects in Canada.


6.ASSETS AND LIABILITIES HELD FOR SALE

As of September 30, 2022, assets and liabilities held for sale included certain assets and liabilities in our U.S. business segment. As of December 31, 2021, assets and liabilities held for sale included certain assets in our U.S. business segment and undeveloped land holdings in our Australia business segment. These assets and liabilities were recorded at the estimated fair value less costs to sell, which exceeded their carry values.
 
The following table summarizes the carrying amount as of September 30, 2022 and December 31, 2021 of the assets and liabilities classified as held for sale (in thousands):
 
September 30, 2022December 31, 2021
Assets held for sale:
Assets
Accounts receivable, net$1,247 $ 
Inventories321 
Property, plant and equipment, net12,01011,762 
Other noncurrent assets181 
Total assets held for sale$13,759 $11,762 
Liabilities held for sale:
Liabilities
Accounts payable$375 $ 
Accrued liabilities470 
Deferred revenue122 
Other current liabilities44 
Other noncurrent liabilities114 
Total liabilities held for sale (1)
$1,125 $ 
12

CIVEO CORPORATION
NOTES TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)

(1)Liabilities held for sale are classified as a current liability on the unaudited consolidated balance sheets, under the caption "Other current liabilities."

7.EARNINGS PER SHARE

We use the two-class method to calculate basic and diluted earnings per share because we have participating securities in the form of Class A preferred shares. The two-class method requires a proportional share of net income to be allocated between common shares and participating securities. The proportional share to be allocated to participating securities is determined by dividing total weighted average participating securities by the sum of total weighted average common shares and participating securities.

Basic earnings per share is computed under the two-class method by dividing the net income (loss) attributable to common shareholders by the weighted average number of common shares outstanding during the period. Net income attributable to common shareholders represents our net income reduced by an allocation of current period earnings to participating securities as described above. No such adjustment is made during periods with a net loss, as the adjustment would be anti-dilutive.

Diluted earnings per share is computed under the two-class method by dividing diluted net income (loss) attributable to common shareholders by the weighted average number of common shares outstanding, plus, for periods with net income attributable to common stockholders, the potential dilutive effects of share-based awards. In addition, we calculate the potential dilutive effect of any outstanding dilutive security under both the two-class method and the “if-converted” method, and we report the more dilutive of the methods as our diluted earnings per share. We also apply the treasury stock method with respect to certain share-based awards in the calculation of diluted earnings per share, if dilutive.

The calculation of earnings per share attributable to Civeo common shareholders is presented below for the periods indicated (in thousands, except per share amounts):
Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
Numerator:
Net income (loss) attributable to Civeo common shareholders$5,225 $62 $15,226 $(10,367)
Less: income allocated to participating securities(794)(9)(2,297) 
Basic net income (loss) attributable to Civeo Corporation common shareholders$4,431 $53 $12,929 $(10,367)
Add: undistributed income attributable to participating securities794