Fourth Quarter Highlights:
- Reports net loss per diluted share of $0.21; $0.20 adjusted net loss per diluted share excluding severance and other downsizing charges
- Well site services generated positive EBITDA margins for the first time in three quarters
- Offshore products’ EBITDA margin averaged 22.1%
- Offshore products’ book-to-bill ratio totaled 0.98x; full year book-to-bill ratio totaled 0.74x
- Reduced total debt by $21 million during the quarter; total debt to total capitalization ratio ended the quarter at 3.7%
HOUSTON, Feb. 15, 2017 (GLOBE NEWSWIRE) -- Oil States International, Inc. (NYSE: OIS ) reported a net loss for the fourth quarter of 2016 of $10.6 million, or $0.21 per diluted share, which included pre-tax charges of $0.6 million ($0.4 million after-tax, or $0.01 per diluted share) for severance and other downsizing charges. These results compare to reported net income for the fourth quarter of 2015 of $1.1 million, or $0.02 per diluted share, which included a total of $5.3 million after-tax, or $0.11 per diluted share, of severance and other downsizing charges, a leasehold restoration provision for one of our offshore products facilities in the U.K. (charge was included as a component of depreciation and amortization expense), a higher quarterly effective tax rate due to deferred tax asset write-offs and tax valuation allowances.
During the fourth quarter of 2016, the Company generated revenues of $169.9 million and Adjusted Consolidated EBITDA (Note B) of $13.7 million (excluding $0.6 million for severance and other downsizing charges). These results compare to revenues of $234.5 million and Adjusted Consolidated EBITDA of $42.5 million reported in the fourth quarter of 2015 (excluding $1.9 million of severance and other downsizing charges).
For the year ended December 31, 2016, the Company reported revenues of $694.4 million and Adjusted Consolidated EBITDA of $55.5 million (excluding $5.2 million of severance and other downsizing charges). The net loss for full year 2016 totaled $46.4 million, or $0.92 per diluted share, and included $5.2 million ($3.3 million after-tax, or $0.06 per diluted share) of severance and other downsizing charges. For the year ended December 31, 2015, the Company reported revenues of $1.1 billion and Adjusted Consolidated EBITDA of $194.1 million (excluding $6.4 million of severance and other downsizing charges). Net income for full year 2015 totaled $28.4 million, or $0.55 per diluted share, and included a total of $17.5 million ($14.7 million after-tax, or $0.29 per diluted share) of severance and other downsizing initiatives ($6.4 million pre-tax, or $0.09 per diluted share), a leasehold restoration provision for one of our offshore products facilities in the U.K. ($3.4 million pre-tax, or $0.05 per diluted share; charge was included as a component of depreciation and amortization expense), a higher effective tax rate driven by $3.6 million ($0.07 per diluted share) of deferred tax asset write-offs and $4.1 million ($0.08 per diluted share) of tax valuation allowances recorded against certain of the Company's deferred tax assets.
Oil States’ President and Chief Executive Officer, Cindy B. Taylor, stated, “We concluded the fourth quarter 2016 with results that reflect the benefit of existing backlog and sound project execution in our offshore products segment coupled with the beginnings of a recovery in U.S. onshore markets, which benefitted our well site services segment. Our quarterly book-to-bill ratio was 0.98x in our offshore products segment suggesting that a floor in backlog should emerge in early 2017. Nonetheless, we entered 2017 with backlog that is down 41% from the beginning of 2016, creating revenue headwinds for 2017. Commodity prices and U.S. land rig count trends are favorable for our well site services segment going into 2017.”
BUSINESS SEGMENT RESULTS
Offshore Products Offshore products generated revenues and Segment EBITDA (Note A) of $115.0 million and $25.4 million, respectively, in the fourth quarter of 2016 compared to revenues of $169.8 million and Segment EBITDA of $50.8 million in the fourth quarter of 2015. Offshore products revenues and Segment EBITDA decreased 32% and 50% year-over-year, respectively, due to lower contributions across most of the segment’s product and service lines, particularly those tied to major project sanctions. The lower quarterly revenues were primarily the result of weaker demand for drilling products, production and pipeline infrastructure products, lower levels of service activities and a backlog position that has trended lower since mid-2014, partially offset by an 82% improvement in elastomer product revenues which are benefitting from U.S. land based activity. Segment EBITDA margin was 22.1% in the fourth quarter of 2016 compared to an unusually high margin of 30.0% realized in the fourth quarter of 2015, due to the number of major projects that were nearing completion at the end of 2015. Backlog declined 2% sequentially, totaling $199 million at December 31, 2016 compared to $203 million reported at September 30, 2016 and $340 million reported at December 31, 2015. Major backlog additions during the fourth quarter included an order for production riser equipment on a floating production system.
Well Site Services Well site services generated revenues of $54.9 million and Segment EBITDA of $1.1 million in the fourth quarter of 2016 compared to revenues and Segment EBITDA of $64.7 million and $1.2 million, respectively, in the fourth quarter of 2015. Well site services revenues and Segment EBITDA decreased 15% and 7% year-over-year, respectively, primarily due to a 39% year-over-year decrease in the number of completion services jobs performed, partially offset by a 40% year-over-year increase in revenue per completion service job primarily as a result of a mix shift to more long-duration jobs in international markets and longer-term project work in the U.S. Gulf of Mexico, in contrast to any significant market price improvements. The average U.S. rig count declined 164 rigs, or 22%, in the fourth quarter 2016 compared to the same quarter in 2015. Lower utilization in the land drilling business, which averaged 18% in the fourth quarter of 2016 compared to 22% in the fourth quarter of 2015, also impacted the quarterly results.
Income Taxes The Company recognized an effective tax rate benefit of 37.8% in the fourth quarter of 2016 and an annualized effective tax rate benefit of 36.7% for 2016. This compares to an unusually high effective tax rate provision of 76.1% in the fourth quarter of 2015 bringing the annualized effective tax rate provision for 2015 to 43.9%. The higher effective tax rate in the fourth quarter and full year 2015 was due to deferred tax adjustments, certain non-deductible items and tax valuation allowances recorded.
Financial Condition As of December 31, 2016, $42.2 million was outstanding under the Company’s revolving credit facility while cash totaled $68.8 million. Total availability under the facility as of December 31, 2016 was $153.1 million (net of standby letters of credit totaling $30.7 million), which is less than the full amount of the facility due to limitations imposed by the maintenance covenant of 3.25 times trailing twelve months Consolidated EBITDA, adjusted for certain non-cash items.
Conference Call Information The call is scheduled for Thursday, February 16, 2017 at 11:00 am ET, and is being webcast and can be accessed from the Company’s website at www.ir.oilstatesintl.com . Participants may also join the conference call by dialing (800) 446-2782 in the United States or by dialing +1 847 413 3235 internationally and using the passcode 44303503. A replay of the conference call will be available one and a half hours after the completion of the call by dialing (888) 843-7419 in the United States or by dialing +1 630 652 3042 internationally and entering the passcode 44303503.
About Oil States Oil States International, Inc. is an energy services company with a leading market position as a manufacturer of products for deepwater production facilities, certain drilling equipment and shorter-cycle consumable products, as well as a provider of completion services and land drilling services to the oil and gas industry. Oil States is publicly traded on the New York Stock Exchange under the symbol “OIS”.
For more information on the Company, please visit Oil States International’s website at www.oilstatesintl.com .
Forward Looking Statements The foregoing contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements included therein are based on then current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the energy service industry and other factors discussed in the "Business" and "Risk Factors" sections of the Form 10-K for the year ended December 31, 2015 filed by Oil States with the Securities and Exchange Commission on February 22, 2016.
| OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (In Thousands, Except Per Share Amounts) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | ||||||||||||||
| Revenues: | ||||||||||||||||
| Products | $ | 92,608 | $ | 138,553 | $ | 416,174 | $ | 561,018 | ||||||||
| Service | 77,326 | 95,921 | 278,270 | 538,959 | ||||||||||||
| 169,934 | 234,474 | 694,444 | 1,099,977 | |||||||||||||
| Costs and expenses: | ||||||||||||||||
| Product costs | 60,415 | 85,578 | 288,270 | 395,137 | ||||||||||||
| Service costs | 65,375 | 79,144 | 238,500 | 390,561 | ||||||||||||
| Selling, general and administrative expenses | 33,179 | 31,932 | 124,033 | 132,664 | ||||||||||||
| Depreciation and amortization expense | 29,054 | 34,515 | 118,720 | 131,257 | ||||||||||||
| Other operating income, net | (1,698 | ) | (2,571 | ) | (5,796 | ) | (4,648 | ) | ||||||||
| 186,325 | 228,598 | 763,727 | 1,044,971 | |||||||||||||
| Operating income (loss) | (16,391 | ) | 5,876 | (69,283 | ) | 55,006 | ||||||||||
| Interest expense | (1,219 | ) | (1,551 | ) | (5,343 | ) | (6,427 | ) | ||||||||
| Interest income | 78 | 115 | 399 | 543 | ||||||||||||
| Other income | 440 | 225 | 902 | 1,446 | ||||||||||||
| Income (loss) from continuing operations before income taxes | (17,092 | ) | 4,665 | (73,325 | ) | 50,568 | ||||||||||
| Income tax benefit (provision) | 6,465 | (3,550 | ) | 26,939 | (22,197 | ) | ||||||||||
| Net income (loss) from continuing operations | (10,627 | ) | 1,115 | (46,386 | ) | 28,371 | ||||||||||
| Net income (loss) from discontinued operations, net of tax | – | 2 | (4 | ) | 226 | |||||||||||
| Net income (loss) attributable to Oil States | $ | (10,627 | ) | $ | 1,117 | $ | (46,390 | ) | $ | 28,597 | ||||||
| Basic net income (loss) per share attributable to Oil States from: | ||||||||||||||||
| Continuing operations | $ | (0.21 | ) | $ | 0.02 | $ | (0.92 | ) | $ | 0.55 | ||||||
| Discontinued operations | – | – | – | 0.01 | ||||||||||||
| Net income (loss) | $ | (0.21 | ) | $ | 0.02 | $ | (0.92 | ) | $ | 0.56 | ||||||
| Diluted net income (loss) per share attributable to Oil States from: | ||||||||||||||||
| Continuing operations | $ | (0.21 | ) | $ | 0.02 | $ | (0.92 | ) | $ | 0.55 | ||||||
| Discontinued operations | – | – | – | 0.01 | ||||||||||||
| Net income (loss) | $ | (0.21 | ) | $ | 0.02 | $ | (0.92 | ) | $ | 0.56 | ||||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic | 50,224 | 49,813 | 50,174 | 50,269 | ||||||||||||
| Diluted | 50,224 | 49,839 | 50,174 | 50,335 | ||||||||||||
| OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| (In Thousands, Except Share Amounts) | |||||||
| December 31, | |||||||
| 2016 | 2015 | ||||||
| (unaudited) | |||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 68,800 | $ | 35,973 | |||
| Accounts receivable, net | 234,513 | 333,494 | |||||
| Inventories, net | 175,490 | 212,882 | |||||
| Prepaid expenses and other current assets | 11,174 | 29,124 | |||||
| Total current assets | 489,977 | 611,473 | |||||
| Property, plant and equipment, net | 553,402 | 638,725 | |||||
| Goodwill, net | 263,369 | 263,787 | |||||
| Other intangible assets, net | 52,746 | 59,385 | |||||
| Other noncurrent assets | 24,404 | 23,101 | |||||
| Total assets | $ | 1,383,898 | $ | 1,596,471 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Current portion of long-term debt and capitalized leases | $ | 538 | $ | 533 | |||
| Accounts payable | 34,207 | 59,116 | |||||
| Accrued liabilities | 45,018 | 49,300 | |||||
| Income taxes payable | 5,839 | 8,303 | |||||
| Deferred revenue | 21,315 | 36,655 | |||||
| Other current liabilities | 315 | 293 | |||||
| Total current liabilities | 107,232 | 154,200 | |||||
| Long-term debt and capitalized leases (1) | 45,388 | 125,887 | |||||
| Deferred income taxes | 5,036 | 40,497 | |||||
| Other noncurrent liabilities | 21,935 | 20,215 | |||||
| Total liabilities | 179,591 | 340,799 | |||||
| Stockholders' equity: | |||||||
| Common stock, $.01 par value, 200,000,000 shares authorized, 62,295,870 shares and 61,712,805 shares issued, respectively | 623 | 617 | |||||
| Additional paid-in capital | 731,562 | 712,980 | |||||
| Retained earnings | 1,133,473 | 1,179,863 | |||||
| Accumulated other comprehensive loss | (70,300 | ) | (50,698 | ) | |||
| Treasury stock at cost, 10,921,509 and 10,759,656 shares, respectively | (591,051 | ) | (587,090 | ) | |||
| Total stockholders' equity | 1,204,307 | 1,255,672 | |||||
| Total liabilities and stockholders' equity | $ | 1,383,898 | $ | 1,596,471 | |||
(1) As of December 31, 2016, the Company had $153.1 million available under its revolving credit facility (net of standby letters of credit totaling $30.7 million), which is less than the full amount of the facility due to the maintenance covenant of 3.25 times trailing twelve months Consolidated EBITDA, adjusted for certain non-cash items.
| OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (In Thousands) | ||||||||
| Year Ended December 31 | ||||||||
| 2016 | 2015 | |||||||
| (unaudited) | ||||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | $ | (46,390 | ) | $ | 28,597 | |||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
| Income (loss) from discontinued operations | 4 | (226 | ) | |||||
| Depreciation and amortization | 118,720 | 131,257 | ||||||
| Stock-based compensation expense | 21,322 | 21,778 | ||||||
| Deferred income tax provision | (37,606 | ) | (3,173 | ) | ||||
| Tax impact of stock-based payment arrangements | – | (469 | ) | |||||
| Gains on disposals of assets | (802 | ) | (1,274 | ) | ||||
| Amortization of deferred financing costs | 785 | 780 | ||||||
| Other, net | 2,923 | 283 | ||||||
| Changes in operating assets and liabilities, net of effect from acquired businesses: | ||||||||
| Accounts receivable | 85,503 | 156,945 | ||||||
| Inventories | 32,158 | 17,777 | ||||||
| Accounts payable and accrued liabilities | (27,716 | ) | (98,354 | ) | ||||
| Income taxes payable | (1,930 | ) | 4,897 | |||||
| Other operating assets and liabilities, net | 2,286 | (3,050 | ) | |||||
| Net cash flows provided by continuing operating activities | 149,257 | 255,768 | ||||||
| Net cash flows provided by discontinued operating activities | – | 353 | ||||||
| Net cash flows provided by operating activities | 149,257 | 256,121 | ||||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures | (29,689 | ) | (114,738 | ) | ||||
| Acquisitions of businesses, net of cash acquired | – | (33,427 | ) | |||||
| Proceeds from disposition of property, plant and equipment | 1,532 | 2,655 | ||||||
| Other, net | (1,135 | ) | (1,686 | ) | ||||
| Net cash flows used in investing activities | (29,292 | ) | (147,196 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Revolving credit repayments, net | (80,674 | ) | (17,825 | ) | ||||
| Debt and capital lease repayments | (534 | ) | (541 | ) | ||||
| Payment of financing costs | (72 | ) | (2 | ) | ||||
| Issuance of common stock from stock-based payment arrangements | 367 | 5,920 | ||||||
| Purchase of treasury stock | – | (105,916 | ) | |||||
| Tax impact of stock-based payment arrangements | – | 469 | ||||||
| Shares added to treasury stock as a result of net share settlements due to vesting of restricted stock | (3,962 | ) | (6,827 | ) | ||||
| Net cash flows used in financing activities | (84,875 | ) | (124,722 | ) | ||||
| Effect of exchange rate changes on cash | (2,263 | ) | (1,493 | ) | ||||
| Net change in cash and cash equivalents | 32,827 | (17,290 | ) | |||||
| Cash and cash equivalents, beginning of year | 35,973 | 53,263 | ||||||
| Cash and cash equivalents, end of year | $ | 68,800 | $ | 35,973 | ||||
| OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||
| SEGMENT DATA | ||||||||||||||||
| (In Thousands) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Revenues: | ||||||||||||||||
| Completion Services | $ | 46,312 | $ | 53,812 | $ | 163,060 | $ | 308,077 | ||||||||
| Drilling Services | 8,578 | 10,894 | 22,594 | 67,782 | ||||||||||||
| Well Site Services | 54,890 | 64,706 | 185,654 | 375,859 | ||||||||||||
| Offshore Products | 115,044 | 169,768 | 508,790 | 724,118 | ||||||||||||
| Total revenues | $ | 169,934 | $ | 234,474 | $ | 694,444 | $ | 1,099,977 | ||||||||
| Operating income (loss): | ||||||||||||||||
| Completion Services (1,2) | $ | (17,385 | ) | $ | (17,788 | ) | $ | (83,636 | ) | $ | (26,280 | ) | ||||
| Drilling Services (1) | (4,542 | ) | (6,140 | ) | (24,239 | ) | (17,866 | ) | ||||||||
| Well Site Services | (21,927 | ) | (23,928 | ) | (107,875 | ) | (44,146 | ) | ||||||||
| Offshore Products (1,2,3) | 19,230 | 41,499 | 87,084 | 146,389 | ||||||||||||
| Corporate | (13,694 | ) | (11,695 | ) | (48,492 | ) | (47,237 | ) | ||||||||
| Total operating income (loss) | $ | (16,391 | ) | $ | 5,876 | $ | (69,283 | ) | $ | 55,006 | ||||||
| OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION – SEGMENT EBITDA AND ADJUSTED SEGMENT EBITDA (A) | ||||||||||||||||
| (In Thousands) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Well Site Services: | ||||||||||||||||
| Completion Services: | ||||||||||||||||
| Operating loss | $ | (17,385 | ) | $ | (17,788 | ) | $ | (83,636 | ) | $ | (26,280 | ) | ||||
| Depreciation and amortization expense | 17,242 | 18,323 | 70,031 | 75,612 | ||||||||||||
| Other income | 409 | 238 | 1,027 | 1,286 | ||||||||||||
| EBITDA | 266 | 773 | (12,578 | ) | 50,618 | |||||||||||
| Severance and other downsizing charges | 165 | 1,060 | 1,998 | 3,083 | ||||||||||||
| Adjusted EBITDA | $ | 431 | $ | 1,833 | $ | (10,580 | ) | $ | 53,701 | |||||||
| Drilling Services: | ||||||||||||||||
| Operating loss | $ | (4,542 | ) | $ | (6,140 | ) | $ | (24,239 | ) | $ | (17,866 | ) | ||||
| Depreciation and amortization expense | 5,313 | 6,521 | 23,366 | 26,889 | ||||||||||||
| Other income (expense) | 38 | (1 | ) | 39 | 52 | |||||||||||
| EBITDA | 809 | 380 | (834 | ) | 9,075 | |||||||||||
| Severance and other downsizing charges | 88 | - | 248 | - | ||||||||||||
| Adjusted EBITDA | $ | 897 | $ | 380 | $ | (586 | ) | $ | 9,075 | |||||||
| Total Well Site Services: | ||||||||||||||||
| Operating loss | $ | (21,927 | ) | $ | (23,928 | ) | $ | (107,875 | ) | $ | (44,146 | ) | ||||
| Depreciation and amortization expense | 22,555 | 24,844 | 93,397 | 102,501 | ||||||||||||
| Other income | 447 | 237 | 1,066 | 1,338 | ||||||||||||
| Segment EBITDA | 1,075 | 1,153 | (13,412 | ) | 59,693 | |||||||||||
| Severance and other downsizing charges | 253 | 1,060 | 2,246 | 3,083 | ||||||||||||
| Adjusted Segment EBITDA | $ | 1,328 | $ | 2,213 | $ | (11,166 | ) | $ | 62,776 | |||||||
| Offshore Products: | ||||||||||||||||
| Operating income | $ | 19,230 | $ | 41,499 | $ | 87,084 | $ | 146,389 | ||||||||
| Depreciation and amortization expense | 6,228 | 9,362 | 24,205 | 27,416 | ||||||||||||
| Other income (expense) | (76 | ) | (12 | ) | (233 | ) | 108 | |||||||||
| Segment EBITDA | 25,382 | 50,849 | 111,056 | 173,913 | ||||||||||||
| Severance and other downsizing charges | 317 | 814 | 2,952 | 3,328 | ||||||||||||
| Adjusted Segment EBITDA | $ | 25,699 | $ | 51,663 | $ | 114,008 | $ | 177,241 | ||||||||
| Corporate: | ||||||||||||||||
| Operating loss | $ | (13,694 | ) | $ | (11,695 | ) | $ | (48,492 | ) | $ | (47,237 | ) | ||||
| Depreciation and amortization expense | 271 | 309 | 1,118 | 1,340 | ||||||||||||
| Other income | 69 | - | 69 | - | ||||||||||||
| EBITDA | (13,354 | ) | (11,386 | ) | (47,305 | ) | (45,897 | ) | ||||||||
| Severance and other downsizing charges | (5 | ) | - | – | - | |||||||||||
| Adjusted EBITDA | $ | (13,359 | ) | $ | (11,386 | ) | $ | (47,305 | ) | $ | (45,897 | ) | ||||
| OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION | ||||||||||||||||
| (In Thousands) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Net income (loss) from continuing operations | $ | (10,627 | ) | $ | 1,115 | $ | (46,386 | ) | $ | 28,371 | ||||||
| Income tax provision (benefit) | (6,465 | ) | 3,550 | (26,939 | ) | 22,197 | ||||||||||
| Depreciation and amortization expense | 29,054 | 34,515 | 118,720 | 131,257 | ||||||||||||
| Interest income | (78 | ) | (115 | ) | (399 | ) | (543 | ) | ||||||||
| Interest expense | 1,219 | 1,551 | 5,343 | 6,427 | ||||||||||||
| Consolidated EBITDA (B) | 13,103 | 40,616 | 50,339 | 187,709 | ||||||||||||
| Adjustments to Consolidated EBITDA (1,2): | ||||||||||||||||
| Severance and other downsizing charges | 565 | 1,874 | 5,198 | 6,411 | ||||||||||||
| Adjusted Consolidated EBITDA (B) | $ | 13,668 | $ | 42,490 | $ | 55,537 | $ | 194,120 | ||||||||
(1) Operating income (loss) and Consolidated EBITDA for the three and twelve months ended December 31, 2016 included severance and other downsizing charges of $0.2 million and $2.0 million, respectively, related to the completion services business, $0.1 million and $0.2 million, respectively, related to the drilling services business and $0.3 million and $3.0 million, respectively, related to the offshore products segment.
(2) Operating income (loss) and Consolidated EBITDA for the three and twelve months ended December 31, 2015 included severance and other downsizing charges of $1.1 million and $3.1 million, respectively, related to the completion services business and $0.8 million and $3.3 million, respectively, related to the offshore products segment.
(3) Operating income (loss) for the three and twelve months ended December 31, 2015 included a $3.4 million depreciation charge related to a leasehold restoration provision for one of our offshore products facilities in the U.K.
(A) The terms Segment EBITDA and Adjusted Segment EBITDA consist of operating income (loss) plus depreciation and amortization expense, and certain other items. Segment EBITDA and Adjusted Segment 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 operating income (loss) or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. Additionally, Segment EBITDA and Adjusted Segment EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included Segment EBITDA and Adjusted Segment EBITDA as a supplemental disclosure because its management believes that Segment EBITDA and Adjusted Segment EBITDA provide useful information regarding its ability to service debt and to fund capital expenditures and provides investors a helpful measure for comparing its operating performance with the performance of other companies that have different financing and capital structures or tax rates. The Company uses Segment EBITDA and Adjusted Segment 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 tables above set forth reconciliations of Segment EBITDA and Adjusted Segment EBITDA to operating income (loss), which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles.
(B) The terms Consolidated EBITDA and Adjusted Consolidated EBITDA consist of net income (loss) plus net interest expense, taxes, depreciation and amortization expense, and certain other items. Consolidated EBITDA and Adjusted Consolidated 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 (loss) from continuing operations or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. Additionally, Consolidated EBITDA and Adjusted Consolidated EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included Consolidated EBITDA and Adjusted Consolidated EBITDA as a supplemental disclosure because its management believes that Consolidated EBITDA and Adjusted Consolidated EBITDA provide useful information regarding its ability to service debt and to fund capital expenditures and provides investors a helpful measure for comparing its operating performance with the performance of other companies that have different financing and capital structures or tax rates. The Company uses Consolidated EBITDA and Adjusted Consolidated EBITDA to compare and to monitor the performance of the Company and 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 table above sets forth a reconciliation of Consolidated EBITDA and Adjusted Consolidated EBITDA to net income (loss) from continuing operations, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles.
| OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||
| ADDITIONAL QUARTERLY SEGMENT AND OPERATING DATA | |||||||||
| (unaudited) | |||||||||
| Three Months Ended December 31, | |||||||||
| Supplement operating data: | 2016 | 2015 | |||||||
| Offshore product backlog ($ in millions) | $ | 199.3 | $ | 340.4 | |||||
| Completion services job tickets | 3,899 | 6,354 | |||||||
| Average revenue per ticket ($ in thousands) | 11.9 | 8.5 | |||||||
| Land drilling operating statistics: | |||||||||
| Average rigs available | 34 | 34 | |||||||
| Utilization | 18.2 | % | 22.1 | % | |||||
| Implied day rate ($ in thousands per day) | $ | 15.1 | $ | 15.8 | |||||
| Implied daily cash margin ($ in thousands per day) | $ | 2.0 | $ | 1.5 | |||||
Company Contact: Lloyd A. Hajdik Oil States International, Inc. Executive Vice President, Chief Financial Officer and Treasurer 713-652-0582 Patricia Gil Oil States International, Inc. Investor Relations 713-470-4860
