Oceaneering Reports Fourth Quarter and Full Year 2016 Results

HOUSTON, Feb. 8, 2017 /PRNewswire/ -- Oceaneering International, Inc. ("Oceaneering") OII today reported a net loss of $11.0 million, or $(0.11) per share, on revenue of $488 million for the three months ended December 31, 2016.  Adjusted net income was $2.6 million, or $0.03 per share, excluding $12.9 million of pre-tax charges and an increase in the annual effective income tax rate recognized during the quarter.  During the prior quarter ended September 30, 2016, Oceaneering reported a net loss of $11.8 million, or $(0.12) per share, on revenue of $549 million, and adjusted net income of $16.6 million, or $0.17 per share.

For the full year 2016, Oceaneering reported net income of $24.6 million, or $0.25 per share, on revenue of $2.3 billion.  Adjusted net income was $74.8 million, or $0.76 per share, excluding the $50.2 million after-tax impact of asset write-downs, restructuring expenses, allowances for bad debts and foreign currency losses, and higher-than-expected effective tax rate recognized during the year.  This compared to 2015 net income of $231 million, or $2.34 per share, on revenue of $3.1 billion, and adjusted net income of $284 million, or $2.87 per share.

Adjusted operating income, net income, earnings per share, and EBITDA and margins are non-GAAP measures which exclude the impacts of certain identified items.  Reconciliations to the corresponding GAAP measures are shown in the tables Adjusted Net Income and Diluted Earnings per Share (EPS), Adjusted Operating Income and Margins by Segment, and EBITDA and Adjusted EBITDA and Margins by Segment.  These tables are included below under the caption Reconciliations of Non-GAAP to GAAP Financial Information.

Summary of Results

(in thousands, except per share amounts)




Three Months Ended


Years Ended



Dec 31,


Sep 30,


Dec 31,










2016


2015


2016


2016


2015












Revenue


$

488,445



$

722,066



$

549,275



$

2,271,603



$

3,062,754


Gross Margin


51,071



106,122



35,443



279,227



605,429


Income (Loss) from Operations


(3,859)



45,756



(11,856)



70,764



373,810


Net Income (Loss)


$

(11,028)



$

27,505



$

(11,798)



$

24,586



$

231,011













Diluted Earnings Per Share (EPS)


$

(0.11)



$

0.28



$

(0.12)



$

0.25



$

2.34


 

For the fourth quarter, adjusted operating income was $21.6 million lower than that of the immediately preceding quarter due to reduced profit contributions from most of Oceaneering's segments, with the exception of Asset Integrity.  Almost one-half of the decline was driven by lower activity levels and profitability in Subsea Projects.  The increase in the 2016 effective tax rate was primarily due to a change in the mix of income or losses between the U.S. and certain foreign jurisdictions.  This resulted in a recapture of prior year U.S. manufacturing deductions and a limitation of the current benefit from certain foreign tax payments.

M. Kevin McEvoy, Chief Executive Officer of Oceaneering, stated, "Our fourth quarter operating results on an adjusted basis approximated our expectations and the consensus estimate.  As industry conditions remained challenging, and our outlook for 2017 does not assume a pronounced recovery in demand for our services and products, our focus has been on organizing more effectively and managing our cost structure.  Accordingly, these restructuring steps included a sizable reduction in our workforce.  We made these difficult decisions to enable our organization to be leaner and appropriately sized for the expected level of business.

"We believe our demonstrated cash flow generating capabilities and liquidity (including $450 million in cash at year end and a $500 million revolving credit facility) provide us ample resources not only to manage our business through the prolonged downturn in offshore activity, but also to position ourselves for the eventual upcycle.  We intend to continue investing in our current and adjacent market niches, with more focus on our customers' operating expenditures and the production phase of the offshore oilfield life cycle.

"Compared to the third quarter, on an adjusted basis, ROV operating income was down, resulting from a 14% reduction of revenue and 16% fewer days utilized.  For the fourth quarter, ROV adjusted EBITDA margins remained respectable at 35%, compared to 36% in the third quarter.

"During the fourth quarter we added one new ROV to our fleet, ending the year with a total of 280 vehicles.  Our fleet utilization for the fourth quarter was 50%.  Our drill support market share during this period was 53% of the 151 floating rigs under contract.  As in recent quarters, the decline in the utilization percentage of our ROV fleet is attributable to the reduced number of working floating drilling rigs, and an overall low level of deepwater vessel activity.  While we endeavor to place more of our ROVs on vessels, we need a sizable increase in our customers' offshore spending levels for there to be a discernible increase in ROV fleet utilization and profitability.

"Sequentially, Subsea Products operating income, on an adjusted basis, declined as expected, due to lower margins on Manufactured Products as we processed backlog and new orders with lower pricing.  Our Subsea Products backlog at December 31, 2016 was $431 million, compared to our September 30, 2016 backlog of $457 million.  The backlog decline was primarily related to umbilicals.  Our book-to-bill ratio was 0.82 and 0.68 for the fourth quarter and full year of 2016, respectively.

"Compared to the third quarter, Subsea Projects adjusted operating income was down substantially due to a lower contribution from our diving operations, lower vessel pricing, the previously scheduled drydock of the Ocean Patriot, and a seasonal decrease in survey work in the Gulf of Mexico.  Asset Integrity adjusted operating income was up, due to better execution in the completion of several jobs.  Advanced Technologies operating income declined, primarily due to a seasonal slowdown in work for the U.S. Navy.  Unallocated Expenses were essentially flat.

"Looking forward, we are projecting a further decline in our profitability and to be marginally profitable at the operating income level on a consolidated basis for 2017.  Below the operating income line, we are projecting a loss from our equity investment in the Medusa Spar as production has declined, and our interest expense is expected to be slightly higher in 2017 than 2016 due to higher rates and less interest being capitalized.

"Operationally, we anticipate declines in profitability to occur in ROVs and Subsea Products, due primarily to the relatively strong adjusted operating results generated by these segments during the first half of 2016.  We expect our Subsea Products operating margins to be in the mid- to high-single digit range considering the cost restructuring measures taken during the fourth quarter.  Our Subsea Projects segment is expected to have another challenging year with reduced vessel activity offshore Angola, and continued competitive pressures on vessel dayrates in the spot "call out" market in the Gulf of Mexico.  Asset Integrity results are projected to be down slightly year-over-year.  For Advanced Technologies, operating income should improve due to a meaningful increase in activity and profit contribution levels within the commercial theme park arena, if the expected projects come to fruition.  We expect higher Unallocated Expenses in 2017, as 2016 results included the impact of reversing earlier accruals associated with our long-term incentive compensation plans, as it became evident during the year our performance targets would not be achieved.

"We believe our first quarter 2017 results will be considerably lower than our adjusted fourth quarter results due to a continuation of weak demand for our services and products, exacerbated by seasonality.  We expect sequentially lower operating income primarily from our Asset Integrity business segment, and higher Unallocated Expenses.  We also expect a discrete additional income tax provision in accordance with a new accounting standard associated with our share based incentive plan.

"For 2017, we expect our organic capital expenditures to total between $90 million and $120 million, including approximately $55 million to $65 million of maintenance capital expenditure and some amounts required to complete the Jones Act vessel Ocean Evolution and the well intervention equipment recently purchased as part of our Blue Ocean Technologies acquisition.  At an operating income break-even level, and with this level of organic growth, we should still generate a substantial amount of free cash flow in 2017.

"Beyond 2017, with stable and improving oil prices, we foresee an increase in deepwater expenditures and improving demand for our services and products.  Meanwhile, we continue to adjust our organization to be commensurate with the existing level of our business, and look for opportunities to resume growth organically and via acquisitions, while providing a dividend to shareholders."

This release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as to the expectations, beliefs and future expected business, financial performance and prospects of the Company.  More specifically, the forward-looking statements in this press release include the statements concerning Oceaneering's: belief that its restructuring steps will enable it to be leaner and appropriately sized for the expected level of business; belief that its demonstrated cash flow generating capabilities, liquidity, and credit facility provide it with ample resources to manage its business through the prolonged downturn in offshore activity and to position itself for the eventual upcycle; characterization of an upcycle as eventual; intention to invest in current and adjacent market niches, focusing more on its customers' operating expenditures and the production phase of the offshore oilfield life cycle; endeavors to place more ROVs on vessels; belief that it needs a sizable increase in its customers' offshore spending levels for there to be a discernible increase in its ROV fleet utilization and profitability; statements about backlog, to the extent it may be an indicator of future revenue or profitability; outlook for the full year and first quarter of 2017, and expected contributions of its segments to the operating results and the associated explanations; expectation about Subsea Products margins; our expectation that Advanced Technologies operating income should improve due to a meaningful increase in activity and profit contribution levels within the commercial theme park arena, if the expected projects come to fruition; expectations about higher interest rates and less interest being capitalized; expectation for a discrete additional income tax provision in accordance with a new accounting standard associated with its share base incentive plan; expectations about capital expenditures; expectations about free cash flow generation; expectations about deepwater expenditures and improving demand for its services and products; expectation to continue to adjust its organization to be commensurate with the existing level of its business; and intention to look for opportunities to resume growth organically and via acquisitions, while providing a dividend to shareholders.  The forward-looking statements included in this release are based on our current expectations and are subject to certain risks, assumptions, trends and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements.  Among the factors that could cause actual results to differ materially include backlog, costs, capital expenditures, future earnings, capital allocation strategies, dividend levels, sustainability of dividend levels, liquidity, competitive position, financial flexibility, debt levels, forecasts or expectations regarding business outlook; growth for Oceaneering as a whole and for each of its segments (and for specific products or geographic areas within each segment); factors affecting the level of activity in the oil and gas industry; supply and demand of drilling rigs; oil and natural gas demand and production growth; oil and natural gas prices; fluctuations in currency markets worldwide; the loss of major contracts or alliances; future global economic conditions; and future results of operations.  For a more complete discussion of these risk factors, please see Oceaneering's latest annual report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.

Oceaneering is a global provider of engineered services and products, primarily to the offshore oil and gas industry, with a focus on deepwater applications.  Through the use of its applied technology expertise, Oceaneering also serves the defense, entertainment, and aerospace industries.

For more information on Oceaneering, please visit www.oceaneering.com.

Contact:
Suzanne Spera
Director, Investor Relations
Oceaneering International, Inc.
713-329-4707
investorrelations@oceaneering.com

Tables follow -

 

OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES





















CONDENSED CONSOLIDATED BALANCE SHEETS






































Dec 31, 2016


Dec 31, 2015
















(in thousands)

ASSETS

















Current Assets (including cash and cash equivalents of $450,193 and $385,235)


$

1,262,595



$

1,517,493



Net Property and Equipment







1,153,258



1,266,731



Other Assets












714,462



645,312





TOTAL ASSETS






$

3,130,315



$

3,429,536






















LIABILITIES AND SHAREHOLDERS' EQUITY






Current Liabilities












$

508,364



$

615,956



Long-term Debt












793,058



795,836



Other Long-term Liabilities






312,250



439,010



Shareholders' Equity








1,516,643



1,578,734





TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY


$

3,130,315



$

3,429,536






















CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
































For the Three Months Ended


For the Year Ended












Dec 31, 2016


Dec 31, 2015


Sep 30, 2016


Dec 31, 2016


Dec 31, 2015












(in thousands, except per share amounts)






















Revenue

$

488,445



$

722,066



$

549,275



$

2,271,603



$

3,062,754



Cost of services and products


437,374



615,944



513,832



1,992,376



2,457,325




Gross Margin


51,071



106,122



35,443



279,227



605,429



Selling, general and administrative expense


54,930



60,366



47,299



208,463



231,619




Income (loss) from Operations


(3,859)



45,756



(11,856)



70,764



373,810



Interest income


1,479



171



684



3,900



607



Interest expense

(6,394)



(6,354)



(6,325)



(25,318)



(25,050)



Equity earnings (losses) of unconsolidated affiliates


(299)



917



(246)



244



2,230



Other income (expense), net


579



(453)



570



(6,244)



(15,336)




Income before Income Taxes


(8,494)



40,037



(17,173)



43,346



336,261



Provision for income taxes (benefit)


2,534



12,532



(5,375)



18,760



105,250




Net Income (loss)


$

(11,028)



$

27,505



$

(11,798)



$

24,586



$

231,011






















Weighted average diluted shares outstanding


98,064



98,268



98,061



98,424



98,808


Diluted Earnings (Loss) per Share


$

(0.11)



$

0.28



$

(0.12)



$

0.25



$

2.34






















The above Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations should be read in conjunction with the Company's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q.

 

SEGMENT INFORMATION







For the Three Months Ended


For the Year Ended







Dec 31, 2016


Dec 31, 2015


Sep 30, 2016


Dec 31, 2016


Dec 31, 2015







($ in thousands)












Remotely Operated Vehicles


Revenue



$

108,352



$

173,424



$

126,507



$

522,121



$

807,723



Gross Margin



$

13,079



$

25,206



$

(16,288)



$

59,038



$

227,330


Operating Income (Loss)



$

4,031



$

16,621



$

(23,845)



$

25,193



$

192,514


Operating Income (Loss) %



4

%


10

%


(19)%



5

%


24

%


Days available



25,684



30,323



29,126



112,588



121,944



Days utilized



12,745



18,760



15,156



59,963



83,838



Utilization %



50

%


62

%


52

%


53

%


69

%
















Subsea Products


Revenue



$

149,052



$

258,889



$

157,269



$

692,030



$

959,714



Gross Margin



$

20,988



$

61,445



$

20,423



$

140,275



$

257,755


Operating Income



$

4,068



$

37,206



$

6,109



$

75,938



$

175,585


Operating Income %



3

%


14

%


4

%


11

%


18

%

Backlog at end of period



$

431,000



$

652,000



$

457,000



$

431,000



$

652,000

















Subsea Projects


Revenue



$

94,096



$

131,397



$

110,799



$

472,979



$

604,484



Gross Margin



$

6,245



$

15,953



$

19,321



$

51,392



$

114,672


Operating Income



$

2,421



$

10,310



$

15,029



$

34,476



$

92,034


Operating Income %



3

%


8

%


14

%


7

%


15

%
















Asset Integrity



Revenue



$

59,938



$

83,346



$

71,995



$

275,397



$

372,957



Gross Margin



$

12,428



$

7,784



$

11,591



$

41,458



$

47,342


Operating Income



$

3,197



$

85



$

4,725



$

7,551



$

18,235


Operating Income %



5

%


%


7

%


3

%


5

%
















Advanced Technologies


Revenue



$

77,007



$

75,010



$

82,705



$

309,076



$

317,876



Gross Margin



$

7,692



$

2,715



$

9,665



$

33,784



$

30,034


Operating Income (Loss)



$

1,331



$

(3,233)



$

4,357



$

11,809



$

9,689


Operating Income (Loss) %



2

%


(4)%



5

%


4

%


3

%
















Unallocated Expenses












Gross Margin



$

(9,361)



$

(6,981)



$

(9,269)



$

(46,720)



$

(71,704)


Operating Income



$

(18,907)



$

(15,233)



$

(18,231)



$

(84,203)



$

(114,247)















TOTAL



Revenue



$

488,445



$

722,066



$

549,275



$

2,271,603



$

3,062,754



Gross Margin



$

51,071



$

106,122



$

35,443



$

279,227



$

605,429


Operating Income (Loss)



$

(3,859)



$

45,756



$

(11,856)



$

70,764



$

373,810


Operating Income (Loss) %



(1)%



6

%


(2)%



3

%


12

%

 

SELECTED CASH FLOW INFORMATION


















For the Three Months Ended


For the Year Ended







Dec 31, 2016


Dec 31, 2015


Sep 30, 2016


Dec 31, 2016


Dec 31, 2015







(in thousands)













Capital expenditures, including acquisitions



$

56,624



$

54,801



$

32,945



$

142,513



$

423,988














Depreciation and Amortization:












Oilfield














Remotely Operated Vehicles



$

29,552



$

36,128



$

43,705



$

140,967



$

143,364



Subsea Products



13,795



11,545



14,205



53,759



49,792



Subsea Projects



8,595



5,723



8,575



34,042



29,863



Asset Integrity



2,600



2,491



5,980



14,336



10,713


Total Oilfield




54,542



55,887



72,465



243,104



233,732


Advanced Technologies



791



670



789



3,120



2,549


Unallocated Expenses



954



1,170



946



4,023



4,954


Total depreciation and amortization



$

56,287



$

57,727



$

74,200



$

250,247



$

241,235


 

RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION

In addition to financial results determined in accordance with U.S. generally accepted accounting principles ("GAAP"), this Press Release also includes non-GAAP financial measures (as defined under SEC Regulation G).  We have included Adjusted Net Income and Diluted Earnings per Share, each of which excludes the effects of certain specified items, as set forth in the tables that follow.  As a result, these amounts are non-GAAP financial measures.  We believe these are useful measures for investors to review because they provide consistent measures of the underlying results of our ongoing business.  Furthermore, our management uses these measures as measures of the performance of our operations.  We have also included disclosures of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), EBITDA Margins and Free Cash Flow, as well as the following by segment:  Adjusted Operating Income and Margins, EBITDA, Adjusted EBITDA and Adjusted EBITDA Margins.  We define EBITDA margin as EBITDA divided by revenue.  Adjusted EBITDA and Adjusted EBITDA Margins as well as Adjusted Operating Income and Margin and related information by segment exclude the effects of certain specified items, as set forth in the tables that follow.  EBITDA and EBITDA margins, Adjusted EBITDA and Adjusted EBITDA margins, and Adjusted Operating Income and Margin and related information by segment are each non-GAAP financial measures.  We define Free Cash Flow as cash flow provided by operating activities less organic capital expenditures (i.e., purchases of property and equipment other than those in business acquisitions).  We have included these disclosures in this press release because EBITDA,  EBITDA margins and Free Cash Flow are widely used by investors for valuation and comparing our financial performance with the performance of other companies in our industry, and the adjusted amounts thereof (as well as Adjusted Operating Income and Margin by Segment) provide more consistent measures than the unadjusted amounts.  Furthermore, our management uses these measures for purposes of evaluating our financial performance.  Our presentation of EBITDA, EBITDA margins and Free Cash Flow (and the Adjusted amounts thereof) may not be comparable to similarly titled measures other companies report.  Non-GAAP financial measures should be viewed in addition to and not as substitutes for our reported operating results, cash flows or any other measure prepared and reported in accordance with GAAP.   The tables that follow provide reconciliations of the non-GAAP measures used in this press release to the most directly comparable GAAP measures.

 

RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION

(continued)

















Adjusted Net Income and Diluted Earnings per Share (EPS)






















For the Three Months Ended






Dec 31, 2016

Dec 31, 2015

Sep 30, 2016






Net Income


Diluted EPS


Net Income


Diluted EPS


Net Income


Diluted EPS






(in thousands, except per share amounts)








Net Income (Loss) and Diluted EPS as reported in accordance with GAAP


$

(11,028)



$

(0.11)



$

27,505



$

0.28



$

(11,798)



$

(0.12)


Pre tax adjustments for the effects of:














Inventory write-downs






16,965





30,490





Restructuring expenses


11,809





13,692









Fixed asset write-offs






2,911





13,790





Non-current asset reserve






6,583









Allowance for bad debts


2,827





4,851









Foreign currency (gains) losses


(1,689)





938





(643)




Total pre tax adjustments


12,947





45,940





43,637




















Tax effect on pre tax adjustments at the 35% statutory rate


(4,531)





(16,079)





(15,273)

















Difference in tax provision on income before taxes in accordance with GAAP


5,193





























Total of adjustments


13,609





29,861





28,364






Adjusted amounts


$

2,581



$

0.03



$

57,366



$

0.58



$

16,566



$

0.17




















For the Years Ended



Dec 31, 2016

Dec 31, 2015



Net Income


Diluted EPS


Net Income


Diluted EPS



(in thousands, except per share amounts)








Net Income and Diluted EPS as reported in accordance with GAAP


$

24,586



$

0.25



$

231,011



$

2.34


Pre tax adjustments for the effects of:










Inventory write-downs


30,490





25,990





Restructuring expenses


11,809





25,404





Allowance for bad debts


8,396





4,851





Non-current asset reserve






6,583





Fixed asset write-offs


13,790





2,911





Foreign currency losses


4,770





15,360




Total pre tax adjustments





69,255





81,099




















Tax effect on pre tax adjustments at the 35% statutory rate


(24,239)





(28,385)




















Difference in tax provision on income before taxes in accordance with GAAP


5,193





















Total of adjustments






50,209





52,714







Adjusted amounts


$

74,795



$

0.76



$

283,725



$

2.87
















Notes:










Weighted average number of diluted shares in each period presented is the same for each adjusting item as used in accordance with GAAP for that period, except for the three-month periods ended December 31, 2016 and September 30, 2016, where we used 98,542,000 and 98,444,000, respectively, instead of the GAAP shares of 98,064,000 and 98,061,000, respectively, as our share equivalents became dilutive based on the amount of adjusted net income.

 


















For consistency in presentation, the difference in tax provision on income before taxes in accordance with GAAP is computed using our historical effective rate of 31.3% and the rate in effect for GAAP for the respective periods.

 













EBITDA and EBITDA Margins
























For the Three Months Ended


For the Year Ended








Dec 31, 2016


Dec 31, 2015


Sep 30, 2016


Dec 31, 2016


Dec 31, 2015








($ in thousands)

















Net Income (Loss)


$

(11,028)



$

27,505



$

(11,798)



$

24,586



$

231,011


Depreciation and Amortization




56,287



57,727



74,200



250,247



241,235





Subtotal


45,259



85,232



62,402



274,833



472,246


Interest Expense, net of Interest Income

4,915



6,183



5,641



21,418



24,443


Amortization included in Interest Expense

(285)



(280)



(287)



(1,145)



(1,077)


Provision for Income Taxes (Benefit)


2,534



12,532



(5,375)



18,760



105,250





EBITDA


$

52,423



$

103,667



$

62,381



$

313,866



$

600,862


















Revenue




$

488,445



$

722,066



$

549,275



$

2,271,603



$

3,062,754


















EBITDA margin %




11

%


14

%


11

%


14

%


20

%

 

Free Cash Flow






















For the Year Ended





Dec 31, 2016


Dec 31, 2015





(in thousands)

Net Income




$

24,586



$

231,011


Depreciation and amortization




250,247



241,235


Other increases in cash from operating activities




65,689



88,162


Cash flow provided by operating activities




340,522



560,408


Purchases of property and equipment




(112,392)



(199,970)


Free Cash Flow







$

228,130



$

360,438


 




Adjusted Operating Income and Margins by Segment






For the Three Months Ended December 31, 2016





Remotely Operated Vehicles


Subsea Products


Subsea Projects


Asset Integrity


Advanced Tech.


Unalloc. Expenses


Total





($ in thousands)

Operating income (loss) as reported in accordance with GAAP


$

4,031



$

4,068



$

2,421



$

3,197



$

1,331



$

(18,907)



$

(3,859)


Adjustments for the effects of:
















Restructuring expenses


3,786



3,730



2,054



1,388



532



319



11,809



Allowance for bad debts


855



97



194



1,681







2,827




Total of adjustments


4,641



3,827



2,248



3,069



532



319



14,636


Adjusted amounts


$

8,672



$

7,895



$

4,669



$

6,266



$

1,863



$

(18,588)



$

10,777



















Revenue


$

108,352



$

149,052



$

94,096



$

59,938



$

77,007





$

488,445


Operating income (loss) % as reported in accordance with GAAP


4

%


3

%


3

%


5

%


2

%




(1)

%

Operating income % using adjusted amounts


8

%


5

%


5

%


10

%


2

%




2

%







































For the Three Months Ended December 31, 2015





Remotely Operated Vehicles


Subsea Products


Subsea Projects


Asset Integrity


Advanced Tech.


Unalloc. Expenses


Total





($ in thousands)

Operating income as reported in accordance with GAAP


$

16,621



$

37,206



$

10,310



$

85



$

(3,233)



$

(15,233)



$

45,756


Adjustments for the effects of:
















Inventory write-downs


15,705



1,260











16,965



Restructuring expenses


3,130



4,966



1,846



3,670



47



33



13,692



Non-current asset reserve




6,583











6,583



Allowance for bad debts




4,851











4,851



Fixed asset write-offs


2,911













2,911




Total of adjustments


21,746



17,660



1,846



3,670



47



33



45,002


Adjusted amounts


$

38,367



$

54,866



$

12,156



$

3,755



$

(3,186)



$

(15,200)



$

90,758




































Revenue


$

173,424



$

258,889



$

131,397



$

83,346



$

75,010





$

722,066


Operating income (loss) % as reported in accordance with GAAP


10

%


14

%


8

%


0

%


(4)

%




6

%

Operating income (loss) % using adjusted amounts


22

%


21

%


9

%


5

%


(4)

%




13

%

 




Adjusted Operating Income and Margins by Segment























For the Three Months Ended September 30, 2016





Remotely Operated Vehicles


Subsea Products


Subsea Projects


Asset Integrity


Advanced Tech.


Unalloc.
Expenses


Total





($ in thousands)

Operating income (loss) as reported in accordance with GAAP


$

(23,845)



$

6,109



$

15,029



$

4,725



$

4,357



$

(18,231)



$

(11,856)


Adjustments for the effects of:
















Inventory write-downs


25,200



5,290











30,490



Fixed asset write-offs


10,840



2,950











13,790




Total of adjustments


36,040



8,240











44,280


Adjusted amounts


$

12,195



$

14,349



$

15,029



$

4,725



$

4,357



$

(18,231)



$

32,424




































Revenue


$

126,507



$

157,269



$

110,799



$

71,995



$

82,705





$

549,275


Operating income (loss) % as reported in accordance with GAAP


(19)

%


4

%


14

%


7

%


5

%




(2)

%

Operating income % using adjusted amounts


10

%


9

%


14

%


7

%


5

%




6

%

 




Adjusted Operating Income and Margins by Segment






For the Year Ended December 31, 2016





Remotely Operated Vehicles


Subsea Products


Subsea Projects


Asset Integrity


Advanced Tech.


Unalloc. Expenses


Total





($ in thousands)

Operating income as reported in accordance with GAAP


$

25,193



$

75,938



$

34,476



$

7,551



$

11,809



$

(84,203)



$

70,764


Adjustments for the effects of:
















Inventory write-downs


25,200



5,290











30,490



Restructuring expenses


3,786



3,730



2,054



1,388



532



319



11,809



Allowance for bad debts


1,195



1,867



321



5,013







8,396



Fixed asset write-offs


10,840



2,950











13,790




Total of adjustments


41,021



13,837



2,375



6,401



532



319



64,485


Adjusted amounts


$

66,214



$

89,775



$

36,851



$

13,952



$

12,341



$

(83,884)



$

135,249



















Revenue


$

522,121



$

692,030



$

472,979



$

275,397



$

309,076





$

2,271,603


Operating income % as reported in accordance with GAAP


5

%


11

%


7

%


3

%


4

%




3

%

Operating income % using adjusted amounts


13

%


13

%


8

%


5

%


4

%




6

%






















For the Year Ended December 31, 2015





Remotely Operated Vehicles


Subsea Products


Subsea Projects


Asset Integrity


Advanced Tech.


Unalloc. Expenses


Total





($ in thousands)

Operating income as reported in accordance with GAAP


$

192,514



$

175,585



$

92,034



$

18,235



$

9,689



$

(114,247)



$

373,810


Adjustments for the effects of:
















Inventory write-downs


15,705



10,285











25,990



Restructuring expenses


7,177



8,672



2,480



6,436



220



419



25,404



Non-current asset reserve




6,583











6,583



Allowance for bad debts




4,851











4,851



Fixed asset write-offs


2,911













2,911




Total of adjustments


25,793



30,391



2,480



6,436



220



419



65,739


Adjusted amounts


$

218,307



$

205,976



$

94,514



$

24,671



$

9,909



$

(113,828)



$

439,549



















Revenue


$

807,723



$

959,714



$

604,484



$

372,957



$

317,876





$

3,062,754


Operating income % as reported in accordance with GAAP


24

%


18

%


15

%


5

%


3

%




12

%

Operating income % using adjusted amounts


27

%


21

%


16

%


7

%


3

%




14

%

 




EBITDA and Adjusted EBITDA and Margins by Segment






For the Three Months Ended December 31, 2016





Remotely Operated Vehicles


Subsea Products


Subsea Projects


Asset Integrity


Advanced Tech.


Unalloc. Expenses and other


Total





($ in thousands)

Operating income as reported in accordance with GAAP


$

4,031



$

4,068



$

2,421



$

3,197



$

1,331



$

(18,907)



$

(3,859)


Adjustments for the effects of:
















Depreciation and amortization


29,552



13,795



8,595



2,600



791



954



56,287



Other pre-tax












(5)



(5)



EBITDA


33,583



17,863



11,016



5,797



2,122



(17,958)



52,423


Adjustments for the effects of:
















Restructuring expenses


3,786



3,730



2,054



1,388



532



319



11,809



Allowance for bad debts


855



97



194



1,681







2,827



Foreign currency (gains) losses












(1,689)



(1,689)




Total of adjustments


4,641



3,827



2,248



3,069



532



(1,370)



12,947


Adjusted EBITDA


$

38,224



$

21,690



$

13,264



$

8,866



$

2,654



$

(19,328)



$

65,370



















Revenue


$

108,352



$

149,052



$

94,096



$

59,938



$

77,007





$

488,445


Operating income (loss) % as reported in accordance with GAAP


4

%


3

%


3

%


5

%


2

%




(1)

%

EBITDA Margin


31

%


12

%


12

%


10

%


3

%




11

%

Adjusted EBITDA Margin


35

%


15

%


14

%


15

%


3

%




13

%






















For the Three Months Ended December 31, 2015





Remotely Operated Vehicles


Subsea Products


Subsea Projects


Asset Integrity


Advanced Tech.


Unalloc. Expenses and other


Total





($ in thousands)

Operating income as reported in accordance with GAAP


$

16,621



$

37,206



$

10,310



$

85



$

(3,233)



$

(15,233)



$

45,756


Adjustments for the effects of:
















Depreciation and amortization


36,128



11,545



5,723



2,491



670



1,170



57,727



Other pre-tax












184



184



EBITDA


52,749



48,751



16,033



2,576



(2,563)



(13,879)



103,667


Adjustments for the effects of:
















Inventory write-downs


15,705



1,260











16,965



Restructuring expenses


3,130



4,966



1,846



3,670



47



33



13,692



Non-current asset reserve




6,583











6,583



Allowance for bad debts




4,851











4,851



Foreign currency (gains) losses












938



938




Total of adjustments


18,835



17,660



1,846



3,670



47



971



43,029


Adjusted EBITDA


$

71,584



$

66,411



$

17,879



$

6,246



$

(2,516)



$

(12,908)



$

146,696



















Revenue


$

173,424



$

258,889



$

131,397



$

83,346



$

75,010





$

722,066


Operating income (loss) % as reported in accordance with GAAP


10

%


14

%


8

%


0

%


(4)

%




6

%

EBITDA Margin


30

%


19

%


12

%


3

%


(3)

%




14

%

Adjusted EBITDA Margin


41

%


26

%


14

%


7

%


(3)

%




20

%

 




EBITDA and Adjusted EBITDA and Margins by Segment






For the Three Months Ended September 30, 2016





Remotely Operated Vehicles


Subsea Products


Subsea Projects


Asset Integrity


Advanced Tech.


Unalloc. Expenses and other


Total





($ in thousands)

Operating income as reported in accordance with GAAP


$

(23,845)



$

6,109



$

15,029



$

4,725



$

4,357



$

(18,231)



$

(11,856)


Adjustments for the effects of:
















Depreciation and amortization


43,705



14,205



8,575



5,980



789



946



74,200



Other pre-tax












37



37



EBITDA


19,860



20,314



23,604



10,705



5,146



(17,248)



62,381


Adjustments for the effects of:
















Inventory write-downs


25,200



5,290











30,490



Foreign currency (gains) losses












(643)



(643)




Total of adjustments


25,200



5,290









(643)



29,847


Adjusted EBITDA


$

45,060



$

25,604



$

23,604



$

10,705



$

5,146



$

(17,891)



$

92,228



















Revenue


$

126,507



$

157,269



$

110,799



$

71,995



$

82,705





$

549,275


Operating income (loss) % as reported in accordance with GAAP


(19)

%


4

%


14

%


7

%


5

%




(2)

%

EBITDA Margin


16

%


13

%


21

%


15

%


6

%




11

%

Adjusted EBITDA Margin


36

%


16

%


21

%


15

%


6

%




17

%

 




EBITDA and Adjusted EBITDA and Margins by Segment






For the Year Ended December 31, 2016





Remotely Operated Vehicles


Subsea Products


Subsea Projects


Asset Integrity


Advanced Tech.


Unalloc. Expenses and other


Total





($ in thousands)

Operating income as reported in accordance with GAAP


$

25,193



$

75,938



$

34,476



$

7,551



$

11,809



$

(84,203)



$

70,764


Adjustments for the effects of:
















Depreciation and amortization


140,967



53,759



34,042



14,336



3,120



4,023



250,247



Other pre-tax












(7,145)



(7,145)



EBITDA


166,160



129,697



68,518



21,887



14,929



(87,325)



313,866


Adjustments for the effects of:
















Inventory write-downs


25,200



5,290











30,490



Restructuring expenses


3,786



3,730



2,054



1,388



532



319



11,809



Allowance for bad debts


1,195



1,867



321



5,013







8,396



Foreign currency (gains) losses












4,770



4,770




Total of adjustments


30,181



10,887



2,375



6,401



532



5,089



55,465


Adjusted EBITDA


$

196,341



$

140,584



$

70,893



$

28,288



$

15,461



$

(82,236)



$

369,331



















Revenue


$

522,121



$

692,030



$

472,979



$

275,397



$

309,076





$

2,271,603


Operating income % as reported in accordance with GAAP


5

%


11

%


7

%


3

%


4

%




3

%

EBITDA Margin


32

%


19

%


14

%


8

%


5

%




14

%

Adjusted EBITDA Margin


38

%


20

%


15

%


10

%


5

%




16

%






















For the Year Ended December 31, 2015





Remotely Operated Vehicles


Subsea Products


Subsea Projects


Asset Integrity


Advanced Tech.


Unalloc. Expenses and other


Total





($ in thousands)

Operating income as reported in accordance with GAAP


$

192,514



$

175,585



$

92,034



$

18,235



$

9,689



$

(114,247)



$

373,810


Adjustments for the effects of:
















Depreciation and amortization


143,364



49,792



29,863



10,713



2,549



4,954



241,235



Other pre-tax












(14,183)



(14,183)



EBITDA


335,878



225,377



121,897



28,948



12,238



(123,476)



600,862


Adjustments for the effects of:
















Inventory write-downs


15,705



10,285











25,990



Restructuring expenses


7,177



8,672



2,480



6,436



220



419



25,404



Non-current asset reserve




6,583











6,583



Allowance for bad debts




4,851











4,851



Foreign currency (gains) losses












15,360



15,360




Total of adjustments


22,882



30,391



2,480



6,436



220



15,779



78,188


Adjusted EBITDA


$

358,760



$

255,768



$

124,377



$

35,384



$

12,458



$

(107,697)



$

679,050



















Revenue


$

807,723



$

959,714



$

604,484



$

372,957



$

317,876





$

3,062,754


Operating income % as reported in accordance with GAAP


24

%


18

%


15

%


5

%


3

%




12

%

EBITDA Margin


42

%


23

%


20

%


8

%


4

%




20

%

Adjusted EBITDA Margin


44

%


27

%


21

%


9

%


4

%




22

%

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/oceaneering-reports-fourth-quarter-and-full-year-2016-results-300404591.html

SOURCE Oceaneering International, Inc.

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