HOUSTON–()–Oceaneering International, Inc. (“Oceaneering”) (NYSE:OII) today reported net income of $23.1 million, or $0.23 per share, on revenue of $536 million for the three months ended December 31, 2022. Adjusted net income was $6.4 million, or $0.06 per share, reflecting the impact of $0.2 million of pre-tax adjustments associated with foreign exchange losses recognized during the quarter and $(16.6) million of discrete tax adjustments, primarily due to changes in valuation allowances and certain adjustments to prior year taxes.

During the prior quarter ended September 30, 2022, Oceaneering reported net income of $18.3 million, or $0.18 per share, on revenue of $560 million. Adjusted net income was $23.7 million, or $0.23 per share, reflecting the impact of $1.1 million of pre-tax adjustments associated with foreign exchange losses recognized during the quarter and $4.4 million of discrete tax adjustments, primarily due to changes in valuation allowances and uncertain tax positions.

Adjusted operating income (loss), operating margins, net income (loss) and earnings (loss) per share; EBITDA and adjusted EBITDA (as well as EBITDA and adjusted EBITDA margins); and free cash flow are non-GAAP measures that exclude the impacts of certain identified items. Reconciliations to the corresponding GAAP measures are shown in the tables Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS), EBITDA and Adjusted EBITDA and Margins, Free Cash Flow, 2023 Adjusted EBITDA and Free Cash Flow Estimates, Adjusted Operating Income (Loss) 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)

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Year Ended

 

 

Dec 31,

 

Sep 30,

 

Dec 31,

 

 

 

 

 

 

 

 

 

2022

 

2021

 

2022

 

2022

 

2021

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

536,223

 

$

466,709

 

 

$

559,671

 

$

2,066,084

 

$

1,869,275

 

Gross Margin

 

 

90,102

 

 

79,163

 

 

 

95,754

 

 

307,377

 

 

264,065

 

Income (Loss) from Operations

 

 

42,177

 

 

(12,572

)

 

 

46,875

 

 

110,863

 

 

39,799

 

Net Income (Loss)

 

 

23,128

 

 

(38,813

)

 

 

18,303

 

 

25,941

 

 

(49,307

)

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings (Loss) Per Share

 

$

0.23

 

$

(0.39

)

 

$

0.18

 

$

0.26

 

$

(0.49

)

For the fourth quarter of 2022:

  • Net income was $23.1 million and consolidated adjusted EBITDA was $70.0 million
  • Consolidated operating income was $42.2 million
  • Remotely Operated Vehicles (ROV) fleet count was 250, Q4 utilization was 62%, and Q4 average revenue per day on hire was $8,967
  • Cash flow provided by operating activities was $159 million and free cash flow was $134 million, with an ending cash position of $569 million
  • Secured consolidated order intake with expected contract value of $771 million

As of December 31, 2022:

  • Manufactured Products backlog was $467 million
  • Consolidated backlog was $1,947 million

Guidance for 2023:

  • Net income is expected in the range of $75 million to $90 million and consolidated adjusted EBITDA is expected in the range of $260 million to $310 million
  • Free cash flow generation is expected in the range of $75 million to $125 million
  • Capital expenditures are expected in the range of $90 million to $110 million
  • First quarter consolidated adjusted EBITDA is expected in the range of $40 million to $50 million

Roderick A. Larson, President and Chief Executive Officer of Oceaneering, stated, “2022 marked our fourth consecutive year of improved adjusted EBITDA performance. In our offshore energy markets, the year unfolded generally as we expected, with seasonally lower activity levels and increased preparation costs during the first half of the year progressing into higher activity levels and increased margins during the second half of the year. Our consolidated adjusted EBITDA of $233 million was above the midpoint of our guidance range, and year-over-year adjusted EBITDA growth was led by significant improvement in our Subsea Robotics (SSR) and Offshore Projects Group (OPG) segment results. We delivered $121 million of cash flow from operations, spent $81.0 million on capital expenditures, and increased our cash position by $30.6 million to $569 million on December 31, 2022. We are encouraged by our strong order intake during the second half of 2022, improving pricing, and an expanding sales pipeline. We expect these positive fundamentals to drive improved financial performance in 2023.

“Our fourth quarter 2022 performance produced consolidated adjusted EBITDA of $70.0 million. Although we experienced typical seasonality, it is worth noting that the combined revenue and adjusted EBITDA levels in our SSR and OPG segments during the fourth quarter of 2022 were significantly greater than the corresponding quarter in 2021. We see this as a positive indicator for prospects in our energy businesses in 2023. Our fourth quarter 2022 results also included accrual releases resulting from more efficient personnel and inventory management that occurred throughout the year and primarily benefited our SSR and Integrity Management and Digital Solutions (IMDS) segments. Consolidated revenue of $536 million was 4% lower than in the third quarter, with revenue increases in our Manufactured Products and Aerospace and Defense Technologies (ADTech) segments being more than offset by revenue decreases in our other operating segments, particularly OPG.

Segment Results

“Our fourth quarter 2022 SSR operating income improved sequentially, despite marginally lower revenue. Activity levels in our ROV, tooling and survey businesses were generally consistent with expectations. As mentioned, SSR’s results included accrual adjustments resulting from personnel and inventory efficiencies recognized in the fourth quarter. As a result, SSR EBITDA margin of 35% during the fourth quarter was above the 31% achieved during the third quarter of 2022. Without the benefit of these releases, SSR’s fourth quarter 2022 EBITDA margin would have been relatively consistent with the margin achieved in the prior quarter.

“Fourth quarter 2022 ROV days on hire declined 7% as compared to the third quarter 2022 with all of the decline coming from vessel-based days as a result of seasonality. Our fleet use during the quarter was 65% in drill support and 35% in vessel-based services, compared to 60% and 40%, respectively, during the third quarter. Fleet utilization declined to 62% in the fourth quarter of 2022 from 67% in the third quarter of 2022. Fourth quarter 2022 average ROV revenue per day on hire of $8,967 was 6% higher than in the third quarter of 2022.

“Manufactured Products fourth quarter 2022 revenue of $100 million was 7% higher than in the third quarter of 2022. Operating income of $6.1 million and operating income margin of 6% were sequentially higher due to favorable project mix. Our Manufactured Products backlog on December 31, 2022 was $467 million, compared to our September 30, 2022 backlog of $365 million. Our book-to-bill ratio was 1.39 for the full year of 2022, as compared with the trailing 12-month book-to-bill of 1.08 on September 30, 2022.

“Sequentially, our fourth quarter 2022 OPG operating income declined on lower revenue. Revenue was 20% lower primarily due to seasonality in the Gulf of Mexico (GoM). Fourth quarter 2022 operating income margin of 9% declined from 13% in the third quarter of 2022. This decline was due to lower-than-anticipated vessel utilization resulting from project schedules shifting into mid-2023 and higher-than-expected vessel demobilization expenses.

“IMDS fourth quarter 2022 operating income improved sequentially on 5% lower revenue. Operating income margin for the fourth quarter improved to 9% from 5% in the third quarter of 2022. The margin improvement was largely due to contract repricing and the benefit associated with efficient personnel management in the year.

“ADTech fourth quarter operating income declined from the third quarter of 2022 on a 7% increase in revenue. ADTech operating income margin declined as expected, to 11%, due to changes in project mix.

“At the corporate level, fourth quarter 2022 Unallocated Expenses of $33.6 million were higher than the third quarter of 2022 due to a combination of increased accruals for incentive-based compensation and increased information technology costs.

Full Year 2022 Results

“For the full year 2022, consolidated operating income improved significantly on higher revenue as compared to 2021 consolidated adjusted operating income. Our improved results in 2022 were due primarily to positive energy markets that spurred increased offshore activity in our SSR and OPG segments, which in turn resulted in improved pricing and increased utilization in the second half of the year. Impacts from the U.S. government’s Continuing Resolution in the early part of 2022 resulted in lower revenue and lower operating income from our ADTech segment.

“Compared to 2021, our 2022 consolidated revenue increased 11% to $2.1 billion, with revenue growth in our OPG, SSR, and Manufactured Products segments partially offset by revenue declines in our IMDS and ADTech segments. Consolidated 2022 operating income and adjusted EBITDA improved, with significant gains in our SSR and OPG segments being partially offset by declines in our ADTech, IMDS, and Manufactured Products segments. We generated $121 million in cash provided from operations and invested $81.0 million in capital expenditures. For the full year 2022, we generated $39.8 million of free cash flow and increased our cash balance by $30.6 million to $569 million.

Full Year 2023 Guidance

“Based on 2022 year-end backlog, the expected meaningful increase in backlog conversion, anticipated 2023 order intake, and current market fundamentals, we are projecting our 2023 consolidated revenue to grow by more than 10%, with increased revenue in each of our operating segments, led by Manufactured Products and SSR. We expect sequential improvement in our 2023 financial results based on our expectations for: higher operating income and higher margins in our SSR, OPG, and Manufactured Products segments; slightly higher operating income and stable margins in our ADTech segment; and relatively stable operating income and margins in our IMDS segment. For the full year 2023, we anticipate generating $260 million to $310 million of EBITDA, with the incremental improvement over 2022 coming primarily from our SSR and OPG segments. At the midpoint of this range, our 2023 EBITDA would represent a 23% increase over 2022 adjusted EBITDA. We anticipate our full year 2023 to yield positive free cash flow of $75 million to $125 million. Based on current market conditions, we expect good opportunities for improved pricing and margins in our energy-focused businesses and stable pricing and margins in our government-focused businesses.

“For SSR, our expectation for improved results is based on increased ROV days on hire, and higher tooling activity, minor favorable shifts in geographic mix, and continued pricing improvements. Survey results are projected to improve as well, with both geophysical and survey and positioning businesses seeing increased international activity. We expect revenue growth in the low-double-digit range and EBITDA margins to average in the low- to mid-30% range for the full year.

“We forecast Manufactured Products results to improve on a significant increase in revenue, primarily based on 2022 order intake in our energy businesses. Bidding activity in our energy businesses remains robust and we expect this to continue during 2023. We are seeing growing interest in our mobility solutions business as highlighted by our recently announced contracts to deliver 85 MaxMoverTM autonomous counterbalance forklift systems in 2023 and 2024, increasing activity from our mobility solutions businesses in 2023. We forecast Manufactured Products operating income margins to average in the mid-single-digit range for the year with the project mix within our umbilical business shifting to more traditional manufacturing activities.

“OPG operating results are forecast to improve in 2023 on a modest increase in revenue. These projections are based on improved vessel utilization in the Gulf of Mexico and increased international activity in installation, intervention and diving, most notably in the second and third quarters. Overall, we expect OPG operating income margins to average in the mid-teens range for the year.

“IMDS operating results are forecast to be relatively flat in 2023 on slightly higher revenue. We see global opportunities for contract renewals and growth, especially in areas where we believe we can leverage digital and robotic capabilities. Operating income margin is expected to remain in the mid-single-digit range for the year.

“Our 2023 ADTech revenue and operating results are expected to be higher than those in 2022. We anticipate growth in all three of our government-focused businesses which secured several key contract awards during the second half of 2022. Operating income margins are expected to average in the low-teens range for the year.

“For 2023, we anticipate Unallocated Expenses to average in the mid- to high-$30 million range per quarter.

“Considering our meaningful cash balance and rising interest rates, we forecast our 2023 interest expense, net of interest income, to decline to approximately $28 million. We expect our 2023 cash tax payments to be in the range of $60 million to $65 million.

First Quarter 2023 Guidance

“Given the higher cost of performing offshore work over the past several years, customers are increasingly planning their work to avoid periods of higher weather risk. As a result, we anticipate a first quarter seasonal impact, particularly in our OPG business. Considering this and anticipated project timing leading to higher levels of utilization in the second and third quarters, we are forecasting our first quarter 2023 adjusted EBITDA to be in the range of $40 million to $50 million. At the respective midpoints, our first quarter guidance represents a 43% increase over the comparable period in 2022 and is expected to represent a percentage of our annual EBITDA similar to the prior year. Sequentially, we project higher revenue and operating results in our Manufactured Products segment; lower revenue and operating results in our SSR, IMDS, and ADTech segments; and lower revenue and significantly lower operating results in our OPG segment.

Optimism with Continued Discipline

“Moving into 2023, our year-end backlog and positive market dynamics support growth in each of our segments and we are excited for the opportunity to further improve our financial performance. We continue to focus on growing our businesses and expanding our margins by increasing utilization and improving pricing. With this optimism comes our firm commitment to maintain our financial and capital discipline. We forecast our capital expenditures will total between $90 million to $110 million in 2023. Safety remains our top priority as we continue to focus on generating significant free cash flow, spending capital prudently to leverage our core competencies in new and existing markets, and managing our 2024 debt maturity. We believe that Oceaneering’s core robotics expertise positions our shareholders for strong returns through our participation in traditional and renewable energy markets, mobile robotics markets, and aerospace and defense markets.”

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, future expected business and financial performance and prospects of Oceaneering. More specifically, the forward-looking statements in this press release include the statements concerning Oceaneering’s: forecasted ranges for full year and first quarter 2023 consolidated EBITDA and adjusted EBITDA guidance ranges, full-year 2023 free cash flow generation, and capital expenditures; expectations regarding seasonal impacts to offshore activity in the first quarter 2023 and future project mix; expectations regarding market fundamentals’ impact on 2023 financial performance; backlog, backlog conversion, anticipated 2023 order intake, current market fundamentals, and vessel utilization, to the extent such items may be indicators of future revenue or profitability; estimated SSR fourth quarter 2022 EBITDA margin, if adjustments had been spread throughout 2022; forecasted range of first quarter 2023 consolidated EBITDA and revenue, and direction of each segment’s revenue and operating results; forecasted range of first quarter 2023 Unallocated Expenses; forecasted guidance ranges for full-year 2023 cash income tax payments; anticipated sequentially comparative full-year 2023 activity and operating performance across each operating segment; anticipated outcomes from stated priorities and focus areas; including aspects of our business and financial strategy; belief that its core robotics expertise positions shareholders for strong returns; and characterization of market fundamentals, conditions and dynamics, offshore energy activity levels, outlook, performance, opportunities, results, and financials as positive, meaningful, improving, seasonal, strong, supportive, robust, significant, substantial, good, or healthy.

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: factors affecting the level of activity in the oil and gas industry, including worldwide demand for and prices of oil and natural gas, oil and natural gas production growth and the supply and demand of offshore drilling rigs; actions by members of OPEC and other oil exporting countries; decisions about offshore developments to be made by oil and gas exploration, development and production companies; the use of subsea completions and our ability to capture associated market share; general economic and business conditions and industry trends; the strength of the industry segments in which we are involved; the continuing effects of the COVID-19 pandemic and variants thereof, and the governmental, customer, supplier, and other responses thereto; cancellations of contracts, change orders and other contractual modifications, force majeure declarations and the exercise of contractual suspension rights and the resulting adjustments to our backlog; collections from our customers; our future financial performance, including as a result of the availability, terms and deployment of capital; the consequences of significant changes in currency exchange rates; the volatility and uncertainties of credit markets; changes in tax laws, regulations and interpretation by taxing authorities; changes in, or our ability to comply with, other laws and governmental regulations, including those relating to the environment; the continued availability of qualified personnel; our ability to obtain raw materials and parts on a timely basis and, in some cases, from limited sources; operating risks normally incident to offshore exploration, development and production operations; hurricanes and other adverse weather and sea conditions; cost and time associated with drydocking of our vessels; the highly competitive nature of our businesses; adverse outcomes from legal or regulatory proceedings; the risks associated with integrating businesses we acquire; rapid technological changes; and social, political, military and economic situations in foreign countries where we do business and the possibilities of civil disturbances, war, other armed conflicts or terrorist attacks. For a more complete discussion of these and other risk factors, please see Oceaneering’s latest annual report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements. Except to the extent required by applicable law, Oceaneering undertakes no obligation to update or revise any forward-looking statement.

Oceaneering is a global technology company delivering engineered services and products and robotic solutions to the offshore energy, defense, aerospace, manufacturing, and entertainment industries.

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

OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dec 31, 2022

 

Dec 31, 2021

 

 

 

 

 

 

 

(in thousands)

ASSETS

 

 

 

 

Current assets (including cash and cash equivalents of $568,745 and $538,114)

 

$

1,297,060

 

 

$

1,188,003

 

Net property and equipment

 

 

438,449

 

 

 

489,596

 

Other assets

 

 

296,174

 

 

 

285,260

 

Total Assets

 

$

2,031,683

 

 

$

1,962,859

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

Current liabilities

 

$

568,414

 

 

$

501,161

 

Long-term debt

 

 

700,973

 

 

 

702,067

 

Other long-term liabilities

 

 

236,492

 

 

 

248,607

 

Equity

 

 

525,804

 

 

 

511,024

 

Total Liabilities and Equity

 

$

2,031,683

 

 

$

1,962,859

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Year Ended

 

Dec 31, 2022

 

Dec 31, 2021

 

Sep 30, 2022

 

Dec 31, 2022

 

Dec 31, 2021

 

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

Revenue

$

536,223

 

 

$

466,709

 

 

$

559,671

 

 

$

2,066,084

 

 

$

1,869,275

 

Cost of services and products

 

446,121

 

 

 

387,546

 

 

 

463,917

 

 

 

1,758,707

 

 

 

1,605,210

 

Gross margin

 

90,102

 

 

 

79,163

 

 

 

95,754

 

 

 

307,377

 

 

 

264,065

 

Selling, general and administrative expense

 

47,925

 

 

 

91,735

 

 

 

48,879

 

 

 

196,514

 

 

 

224,266

 

Income (loss) from operations

 

42,177

 

 

 

(12,572

)

 

 

46,875

 

 

 

110,863

 

 

 

39,799

 

Interest income

 

2,749

 

 

 

613

 

 

 

1,396

 

 

 

5,708

 

 

 

2,477

 

Interest expense

 

(9,601

)

 

 

(9,058

)

 

 

(9,552

)

 

 

(38,215

)

 

 

(38,810

)

Equity in income (losses) of unconsolidated affiliates

 

599

 

 

 

(507

)

 

 

496

 

 

 

1,707

 

 

 

594

 

Other income (expense), net

 

(816

)

 

 

(5,547

)

 

 

(1,222

)

 

 

(1,011

)

 

 

(9,769

)

Income (loss) before income taxes

 

35,108

 

 

 

(27,071

)

 

 

37,993

 

 

 

79,052

 

 

 

(5,709

)

Provision (benefit) for income taxes

 

11,980

 

 

 

11,742

 

 

 

19,690

 

 

 

53,111

 

 

 

43,598

 

Net Income (Loss)

$

23,128

 

 

$

(38,813

)

 

$

18,303

 

 

$

25,941

 

 

$

(49,307

)

 

 

 

 

 

 

 

 

 

 

Weighted average diluted shares outstanding

 

101,597

 

 

 

99,799

 

 

 

101,310

 

 

 

101,447

 

 

 

99,706

 

Diluted earnings (loss) per share

$

0.23

 

 

$

(0.39

)

 

$

0.18

 

 

$

0.26

 

 

$

(0.49

)

 

 

 

 

 

 

 

 

 

 

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, 2022

 

Dec 31, 2021

 

Sep 30, 2022

 

Dec 31, 2022

 

Dec 31, 2021

 

 

($ in thousands)

Subsea Robotics

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

167,387

 

 

$

134,315

 

 

$

169,422

 

 

$

621,921

 

 

$

538,515

 

Gross margin

 

$

54,013

 

 

$

28,199

 

 

$

47,552

 

 

$

160,527

 

 

$

112,962

 

Operating income (loss)

 

$

43,689

 

 

$

21,012

 

 

$

37,069

 

 

$

118,248

 

 

$

76,874

 

Operating income (loss) %

 

 

26

%

 

 

16

%

 

 

22

%

 

 

19

%

 

 

14

%

ROV days available

 

 

23,000

 

 

 

23,021

 

 

 

23,000

 

 

 

91,250

 

 

 

91,242

 

ROV days utilized

 

 

14,350

 

 

 

12,747

 

 

 

15,408

 

 

 

56,231

 

 

 

53,113

 

ROV utilization

 

 

62

%

 

 

55

%

 

 

67

%

 

 

62

%

 

 

58

%

 

 

 

 

 

 

 

 

 

 

 

Manufactured Products

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

100,174

 

 

$

102,940

 

 

$

94,039

 

 

$

382,361

 

 

$

344,251

 

Gross margin

 

$

14,744

 

 

$

36,516

 

 

$

12,170

 

 

$

45,834

 

 

$

63,455

 

Operating income (loss)

 

$

6,132

 

 

$

(20,228

)

 

$

4,282

 

 

$

11,692

 

 

$

(15,876

)

Operating income (loss) %

 

 

6

%

 

 

(20

)%

 

 

5

%

 

 

3

%

 

 

(5

)%

Backlog at end of period

 

$

467,000

 

 

$

318,000

 

 

$

365,000

 

 

$

467,000

 

 

$

318,000

 

 

 

 

 

 

 

 

 

 

 

 

Offshore Projects Group

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

122,476

 

 

$

85,356

 

 

$

152,987

 

 

$

489,317

 

 

$

378,121

 

Gross margin

 

$

17,548

 

 

$

12,846

 

 

$

27,647

 

 

$

78,373

 

 

$

56,338

 

Operating income (loss)

 

$

10,745

 

 

$

6,754

 

 

$

20,310

 

 

$

49,256

 

 

$

31,197

 

Operating income (loss) %

 

 

9

%

 

 

8

%

 

 

13

%

 

 

10

%

 

 

8

%

 

 

 

 

 

 

 

 

 

 

 

Integrity Management & Digital Solutions

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

55,411

 

 

$

60,469

 

 

$

58,465

 

 

$

229,884

 

 

$

241,393

 

Gross margin

 

$

9,932

 

 

$

12,416

 

 

$

8,371

 

 

$

36,724

 

 

$

42,417

 

Operating income (loss)

 

$

4,866

 

 

$

6,015

 

 

$

3,091

 

 

$

14,901

 

 

$

18,572

 

Operating income (loss) %

 

 

9

%

 

 

10

%

 

 

5

%

 

 

6

%

 

 

8

%

 

 

 

 

 

 

 

 

 

 

 

Aerospace and Defense Technologies

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

90,775

 

 

$

83,629

 

 

$

84,758

 

 

$

342,601

 

 

$

366,995

 

Gross margin

 

$

16,402

 

 

$

15,863

 

 

$

19,431

 

 

$

68,447

 

 

$

82,595

 

Operating income (loss)

 

$

10,320

 

 

$

10,562

 

 

$

13,043

 

 

$

44,168

 

 

$

60,992

 

Operating income (loss) %

 

 

11

%

 

 

13

%

 

 

15

%

 

 

13

%

 

 

17

%

 

 

 

 

 

 

 

 

 

 

 

Unallocated Expenses

 

 

 

 

 

 

 

 

 

 

Gross margin

 

$

(22,537

)

 

$

(26,677

)

 

$

(19,417

)

 

$

(82,528

)

 

$

(93,702

)

Operating income (loss)

 

$

(33,575

)

 

$

(36,687

)

 

$

(30,920

)

 

$

(127,402

)

 

$

(131,960

)

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

536,223

 

 

$

466,709

 

 

$

559,671

 

 

$

2,066,084

 

 

$

1,869,275

 

Gross margin

 

$

90,102

 

 

$

79,163

 

 

$

95,754

 

 

$

307,377

 

 

$

264,065

 

Operating income (loss)

 

$

42,177

 

 

$

(12,572

)

 

$

46,875

 

 

$

110,863

 

 

$

39,799

 

Operating income (loss) %

 

 

8

%

 

 

(3

)%

 

 

8

%

 

 

5

%

 

 

2

%

 

The above Segment Information does not include adjustments for non-recurring transactions. See the tables below under the caption “Reconciliations of Non-GAAP to GAAP Financial Information” for financial measures that our management considers in evaluating our ongoing operations.

SELECTED CASH FLOW INFORMATION

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Year Ended

 

 

Dec 31, 2022

 

Dec 31, 2021

 

Sep 30, 2022

 

Dec 31, 2022

 

Dec 31, 2021

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures, including Acquisitions

 

$

25,949

 

$

14,383

 

$

19,280

 

$

81,043

 

$

50,199

 

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization:

 

 

 

 

 

 

 

 

 

 

Energy Services and Products

 

 

 

 

 

 

 

 

 

 

Subsea Robotics

 

$

15,139

 

$

21,029

 

$

16,013

 

$

67,684

 

$

87,900

Manufactured Products

 

 

2,915

 

 

3,111

 

 

2,939

 

 

11,946

 

 

12,788

Offshore Projects Group

 

 

7,024

 

 

7,405

 

 

7,132

 

 

28,560

 

 

28,173

Integrity Management & Digital Solutions

 

 

840

 

 

1,091

 

 

1,695

 

 

4,599

 

 

4,420

Total Energy Services and Products

 

 

25,918

 

 

32,636

 

 

27,779

 

 

112,789

 

 

133,281

Aerospace and Defense Technologies

 

 

705

 

 

676

 

 

671

 

 

2,853

 

 

4,783

Unallocated Expenses

 

 

1,218

 

 

474

 

 

1,799

 

 

5,327

 

 

1,659

Total Depreciation and Amortization

 

$

27,841

 

$

33,786

 

$

30,249

 

$

120,969

 

$

139,723

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 (Loss) and Diluted Earnings (Loss) 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, 2023 Adjusted EBITDA Estimates, and Free Cash Flow, as well as the following by segment: Adjusted Operating Income and Margins, EBITDA, EBITDA Margins, 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.

Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

Dec 31, 2022

Dec 31, 2021

Sep 30, 2022

 

 

Net Income

(Loss)

 

Diluted

EPS

 

Net Income

(Loss)

 

Diluted

EPS

 

Net Income

(Loss)

 

Diluted

EPS

 

 

(in thousands, except per share amounts)

 

 

 

 

 

 

 

Net income (loss) and diluted EPS as reported in accordance with GAAP

 

$

23,128

 

 

$

0.23

 

$

(38,813

)

 

$

(0.39

)

 

$

18,303

 

 

$

0.18

Pre-tax adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Evergrande losses, net

 

 

 

 

 

 

 

29,549

 

 

 

 

 

 

 

 

Foreign currency (gains) losses

 

 

193

 

 

 

 

 

1,082

 

 

 

 

 

1,145

 

 

 

Total pre-tax adjustments

 

 

193

 

 

 

 

 

30,631

 

 

 

 

 

1,145

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods

 

 

(333

)

 

 

 

 

(6,388

)

 

 

 

 

(174

)

 

 

Discrete tax items:

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation

 

 

 

 

 

 

 

(2

)

 

 

 

 

 

 

 

Uncertain tax positions

 

 

(669

)

 

 

 

 

111

 

 

 

 

 

1,813

 

 

 

Valuation allowances

 

 

(7,679

)

 

 

 

 

16,887

 

 

 

 

 

452

 

 

 

Other

 

 

(8,263

)

 

 

 

 

2,593

 

 

 

 

 

2,162

 

 

 

Total discrete tax adjustments

 

 

(16,611

)

 

 

 

 

19,589

 

 

 

 

 

4,427

 

 

 

Total of adjustments

 

 

(16,751

)

 

 

 

 

43,832

 

 

 

 

 

5,398

 

 

 

Adjusted Net Income (Loss)

 

$

6,377

 

 

$

0.06

 

$

5,019

 

 

$

0.05

 

 

$

23,701

 

 

$

0.23

Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss)

 

 

 

 

101,597

 

 

 

 

101,206

 

 

 

 

 

101,310

Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS)

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended

 

 

Dec 31, 2022

Dec 31, 2021

 

 

Net Income

(Loss)

 

Diluted

EPS

 

Net Income

(Loss)

 

Diluted

EPS

 

 

(in thousands, except per share amounts)

 

 

 

 

 

 

 

Net income (loss) and diluted EPS as reported in accordance with GAAP

 

$

25,941

 

 

$

0.26

 

$

(49,307

)

 

$

(0.49

)

Pre-tax adjustments for the effects of:

 

 

 

 

 

 

 

 

Provision for Evergrande losses, net

 

 

 

 

 

 

 

29,549

 

 

 

Loss on sale of asset

 

 

 

 

 

 

 

1,415

 

 

 

Restructuring expenses and other

 

 

 

 

 

 

 

1,308

 

 

 

Foreign currency (gains) losses

 

 

4

 

 

 

 

 

5,032

 

 

 

Total pre-tax adjustments

 

 

4

 

 

 

 

 

37,304

 

 

 

 

 

 

 

 

 

 

 

 

Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods

 

 

(275

)

 

 

 

 

(7,819

)

 

 

Discrete tax items:

 

 

 

 

 

 

 

 

Share-based compensation

 

 

137

 

 

 

 

 

542

 

 

 

Uncertain tax positions

 

 

(81

)

 

 

 

 

158

 

 

 

Valuation allowances

 

 

11,119

 

 

 

 

 

33,068

 

 

 

Other

 

 

(5,734

)

 

 

 

 

2,809

 

 

 

Total discrete tax adjustments

 

 

5,441

 

 

 

 

 

36,577

 

 

 

Total of adjustments

 

 

5,170

 

 

 

 

 

66,062

 

 

 

Adjusted Net Income (Loss)

 

$

31,111

 

 

$

0.31

 

$

16,755

 

 

$

0.17

 

Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss)

 

 

 

 

101,447

 

 

 

 

100,895

 

EBITDA and Adjusted EBITDA and Margins

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Year Ended

 

 

Dec 31, 2022

 

Dec 31, 2021

 

Sep 30, 2022

 

Dec 31, 2022

 

Dec 31, 2021

 

 

($ in thousands)

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

23,128

 

 

$

(38,813

)

 

$

18,303

 

 

$

25,941

 

 

$

(49,307

)

Depreciation and amortization

 

 

27,841

 

 

 

33,786

 

 

 

30,249

 

 

 

120,969

 

 

 

139,723

 

Subtotal

 

 

50,969

 

 

 

(5,027

)

 

 

48,552

 

 

 

146,910

 

 

 

90,416

 

Interest expense, net of interest income

 

 

6,852

 

 

 

8,445

 

 

 

8,156

 

 

 

32,507

 

 

 

36,333

 

Amortization included in interest expense

 

 

33

 

 

 

865

 

 

 

39

 

 

 

106

 

 

 

2,950

 

Provision (benefit) for income taxes

 

 

11,980

 

 

 

11,742

 

 

 

19,690

 

 

 

53,111

 

 

 

43,598

 

EBITDA

 

 

69,834

 

 

 

16,025

 

 

 

76,437

 

 

 

232,634

 

 

 

173,297

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

Provision for Evergrande losses, net

 

 

 

 

 

29,549

 

 

 

 

 

 

 

 

 

29,549

 

Loss on sale of asset

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,415

 

Restructuring expenses and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,308

 

Foreign currency (gains) losses

 

 

193

 

 

 

1,082

 

 

 

1,145

 

 

 

4

 

 

 

5,032

 

Total of adjustments

 

 

193

 

 

 

30,631

 

 

 

1,145

 

 

 

4

 

 

 

37,304

 

Adjusted EBITDA

 

$

70,027

 

 

$

46,656

 

 

$

77,582

 

 

$

232,638

 

 

$

210,601

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

536,223

 

 

$

466,709

 

 

$

559,671

 

 

$

2,066,084

 

 

$

1,869,275

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA margin %

 

 

13

%

 

 

3

%

 

 

14

%

 

 

11

%

 

 

9

%

Adjusted EBITDA margin %

 

 

13

%

 

 

10

%

 

 

14

%

 

 

11

%

 

 

11

%

Free Cash Flow

 

 

 

 

For the Three Months Ended

 

For the Year Ended

 

 

Dec 31, 2022

 

Dec 31, 2021

 

Sep 30, 2022

 

Dec 31, 2022

 

Dec 31, 2021

 

 

(in thousands)

Net Income (loss)

 

$

23,128

 

 

$

(38,813

)

 

$

18,303

 

 

$

25,941

 

 

$

(49,307

)

Non-cash adjustments:

 

 

 

 

 

Depreciation and amortization

 

 

27,841

 

 

 

33,786

 

 

 

30,249

 

 

 

120,969

 

 

 

139,723

 

Other non-cash

 

 

2,991

 

 

 

31,244

 

 

 

4,171

 

 

 

8,542

 

 

 

35,226

 

Other increases (decreases) in cash from operating activities

 

 

105,506

 

 

 

113,778

 

 

 

33,176

 

 

 

(34,569

)

 

 

99,672

 

Cash flow provided by (used in) operating activities

 

 

159,466

 

 

 

139,995

 

 

 

85,899

 

 

 

120,883

 

 

 

225,314

 

Purchases of property and equipment

 

 

(25,949

)

 

 

(14,383

)

 

 

(19,280

)

 

 

(81,043

)

 

 

(50,199

)

Free Cash Flow

 

$

133,517

 

 

$

125,612

 

 

$

66,619

 

 

$

39,840

 

 

$

175,115

 

2023 Adjusted EBITDA Estimates

 

 

 

 

 

 

 

For the Three Months Ending

 

 

March 31, 2023

 

 

Low

 

High

 

 

(in thousands)

Income (loss) before income taxes

 

$

7,000

 

 

$

11,000

 

Depreciation and amortization

 

 

25,000

 

 

 

31,000

 

Subtotal

 

 

32,000

 

 

 

42,000

 

Interest expense, net of interest income

 

 

8,000

 

 

 

8,000

 

Adjusted EBITDA

 

$

40,000

 

 

$

50,000

 

 

 

 

 

 

 

 

For the Year Ending

 

 

December 31, 2023

 

 

Low

 

High

 

 

(in thousands)

Income (loss) before income taxes

 

$

127,000

 

 

$

157,000

 

Depreciation and amortization

 

 

105,000

 

 

 

125,000

 

Subtotal

 

 

232,000

 

 

 

282,000

 

Interest expense, net of interest income

 

 

28,000

 

 

 

28,000

 

Adjusted EBITDA

 

$

260,000

 

 

$

310,000

 

 

 

 

 

 

 

 

 

 

 

2023 Free Cash Flow Estimate

 

 

 

 

 

 

 

For the Year Ending

 

 

December 31, 2023

 

 

Low

 

High

 

 

(in thousands)

Net income (loss)

 

$

75,000

 

 

$

90,000

 

Depreciation and amortization

 

 

105,000

 

 

 

125,000

 

Other increases (decreases) in cash from operating activities

 

 

(15,000

)

 

 

20,000

 

Cash flow provided by (used in) operating activities

 

 

165,000

 

 

 

235,000

 

Purchases of property and equipment

 

 

(90,000

)

 

 

(110,000

)

Free Cash Flow

 

$

75,000

 

 

$

125,000

 

Adjusted Operating Income (Loss) and Margins by Segment

 

 

 

For the Three Months Ended December 31, 2022

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated

Expenses

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

43,689

 

 

$

6,132

 

 

$

10,745

 

 

$

4,866

 

 

$

10,320

 

 

$

(33,575

)

 

$

42,177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Income (Loss)

 

$

43,689

 

 

$

6,132

 

 

$

10,745

 

 

$

4,866

 

 

$

10,320

 

 

$

(33,575

)

 

$

42,177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

167,387

 

 

$

100,174

 

 

$

122,476

 

 

$

55,411

 

 

$

90,775

 

 

 

 

$

536,223

 

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

 

 

26

%

 

 

6

%

 

 

9

%

 

 

9

%

 

 

11

%

 

 

 

 

8

%

Operating income (loss) % using adjusted amounts

 

 

26

%

 

 

6

%

 

 

9

%

 

 

9

%

 

 

11

%

 

 

 

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended December 31, 2021

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated

Expenses

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

21,012

 

 

$

(20,228

)

 

$

6,754

 

 

$

6,015

 

 

$

10,562

 

 

$

(36,687

)

 

$

(12,572

)

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Evergrande losses, net

 

 

 

 

 

29,549

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29,549

 

Total of adjustments

 

 

 

 

 

29,549

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29,549

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Income (Loss)

 

$

21,012

 

 

$

9,321

 

 

$

6,754

 

 

$

6,015

 

 

$

10,562

 

 

$

(36,687

)

 

$

16,977

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

134,315

 

 

$

102,940

 

 

$

85,356

 

 

$

60,469

 

 

$

83,629

 

 

 

 

$

466,709

 

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

 

 

16

%

 

 

(20

)%

 

 

8

%

 

 

10

%

 

 

13

%

 

 

 

 

(3

)%

Operating income (loss) % using adjusted amounts

 

 

16

%

 

 

9

%

 

 

8

%

 

 

10

%

 

 

13

%

 

 

 

 

4

%

 

 

For the Three Months Ended September 30, 2022

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated

Expenses

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

37,069

 

 

$

4,282

 

 

$

20,310

 

 

$

3,091

 

 

$

13,043

 

 

$

(30,920

)

 

$

46,875

 

Adjusted Operating Income (Loss)

 

$

37,069

 

 

$

4,282

 

 

$

20,310

 

 

$

3,091

 

 

$

13,043

 

 

$

(30,920

)

 

$

46,875

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

169,422

 

 

$

94,039

 

 

$

152,987

 

 

$

58,465

 

 

$

84,758

 

 

 

 

$

559,671

 

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

 

 

22

%

 

 

5

%

 

 

13

%

 

 

5

%

 

 

15

%

 

 

 

 

8

%

Operating income (loss) % using adjusted amounts

 

 

22

%

 

 

5

%

 

 

13

%

 

 

5

%

 

 

15

%

 

 

 

 

8

%

Adjusted Operating Income (Loss) and Margins by Segment

 

 

 

For the Year Ended December 31, 2022

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated

Expenses

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

118,248

 

 

$

11,692

 

 

$

49,256

 

 

$

14,901

 

 

$

44,168

 

 

$

(127,402

)

 

$

110,863

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Income (Loss)

 

$

118,248

 

 

$

11,692

 

 

$

49,256

 

 

$

14,901

 

 

$

44,168

 

 

$

(127,402

)

 

$

110,863

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

621,921

 

 

$

382,361

 

 

$

489,317

 

 

$

229,884

 

 

$

342,601

 

 

 

 

$

2,066,084

 

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

 

 

19

%

 

 

3

%

 

 

10

%

 

 

6

%

 

 

13

%

 

 

 

 

5

%

Operating income (loss) % using adjusted amounts

 

 

19

%

 

 

3

%

 

 

10

%

 

 

6

%

 

 

13

%

 

 

 

 

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31, 2021

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated

Expenses

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

76,874

 

 

$

(15,876

)

 

$

31,197

 

 

$

18,572

 

 

$

60,992

 

 

$

(131,960

)

 

$

39,799

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Evergrande losses, net

 

 

 

 

 

29,549

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29,549

 

Loss on sale of asset

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,415

 

 

 

1,415

 

Restructuring expenses and other

 

 

395

 

 

 

537

 

 

 

149

 

 

 

217

 

 

 

10

 

 

 

 

 

 

1,308

 

Total of adjustments

 

 

395

 

 

 

30,086

 

 

 

149

 

 

 

217

 

 

 

10

 

 

 

1,415

 

 

 

32,272

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Income (Loss)

 

$

77,269

 

 

$

14,210

 

 

$

31,346

 

 

$

18,789

 

 

$

61,002

 

 

$

(130,545

)

 

$

72,071

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

538,515

 

 

$

344,251

 

 

$

378,121

 

 

$

241,393

 

 

$

366,995

 

 

 

 

$

1,869,275

 

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

 

 

14

%

 

 

(5

)%

 

 

8

%

 

 

8

%

 

 

17

%

 

 

 

 

2

%

Operating income (loss) % using adjusted amounts

 

 

14

%

 

 

4

%

 

 

8

%

 

 

8

%

 

 

17

%

 

 

 

 

4

%

EBITDA and Adjusted EBITDA and Margins by Segment

 

 

 

For the Three Months Ended December 31, 2022

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated

Expenses

and other

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

43,689

 

 

$

6,132

 

 

$

10,745

 

 

$

4,866

 

 

$

10,320

 

 

$

(33,575

)

 

$

42,177

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

15,139

 

 

 

2,915

 

 

 

7,024

 

 

 

840

 

 

 

705

 

 

 

1,218

 

 

 

27,841

 

Other pre-tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(184

)

 

 

(184

)

EBITDA

 

 

58,828

 

 

 

9,047

 

 

 

17,769

 

 

 

5,706

 

 

 

11,025

 

 

 

(32,541

)

 

 

69,834

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency (gains) losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

193

 

 

 

193

 

Total of adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

193

 

 

 

193

 

Adjusted EBITDA

 

$

58,828

 

 

$

9,047

 

 

$

17,769

 

 

$

5,706

 

 

$

11,025

 

 

$

(32,348

)

 

$

70,027

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

167,387

 

 

$

100,174

 

 

$

122,476

 

 

$

55,411

 

 

$

90,775

 

 

 

 

$

536,223

 

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

 

 

26

%

 

 

6

%

 

 

9

%

 

 

9

%

 

 

11

%

 

 

 

 

8

%

EBITDA Margin

 

 

35

%

 

 

9

%

 

 

15

%

 

 

10

%

 

 

12

%

 

 

 

 

13

%

Adjusted EBITDA Margin

 

 

35

%

 

 

9

%

 

 

15

%

 

 

10

%

 

 

12

%

 

 

 

 

13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended December 31, 2021

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated

Expenses

and other

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

21,012

 

 

$

(20,228

)

 

$

6,754

 

 

$

6,015

 

 

$

10,562

 

 

$

(36,687

)

 

$

(12,572

)

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

21,029

 

 

 

3,111

 

 

 

7,405

 

 

 

1,091

 

 

 

676

 

 

 

474

 

 

 

33,786

 

Other pre-tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,189

)

 

 

(5,189

)

EBITDA

 

 

42,041

 

 

 

(17,117

)

 

 

14,159

 

 

 

7,106

 

 

 

11,238

 

 

 

(41,402

)

 

 

16,025

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Evergrande losses, net

 

 

 

 

 

29,549

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29,549

 

Foreign currency (gains) losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,082

 

 

 

1,082

 

Total of adjustments

 

 

 

 

 

29,549

 

 

 

 

 

 

 

 

 

 

 

 

1,082

 

 

 

30,631

 

Adjusted EBITDA

 

$

42,041

 

 

$

12,432

 

 

$

14,159

 

 

$

7,106

 

 

$

11,238

 

 

$

(40,320

)

 

$

46,656

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

134,315

 

 

$

102,940

 

 

$

85,356

 

 

$

60,469

 

 

$

83,629

 

 

 

 

$

466,709

 

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

 

 

16

%

 

 

(20

)%

 

 

8

%

 

 

10

%

 

 

13

%

 

 

 

 

(3

)%

EBITDA Margin

 

 

31

%

 

 

(17

)%

 

 

17

%

 

 

12

%

 

 

13

%

 

 

 

 

3

%

Adjusted EBITDA Margin

 

 

31

%

 

 

12

%

 

 

17

%

 

 

12

%

 

 

13

%

 

 

 

 

10

%

 

 

For the Three Months Ended September 30, 2022

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated

Expenses

and other

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

37,069

 

 

$

4,282

 

 

$

20,310

 

 

$

3,091

 

 

$

13,043

 

 

$

(30,920

)

 

$

46,875

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

16,013

 

 

 

2,939

 

 

 

7,132

 

 

 

1,695

 

 

 

671

 

 

 

1,799

 

 

 

30,249

 

Other pre-tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(687

)

 

 

(687

)

EBITDA

 

 

53,082

 

 

 

7,221

 

 

 

27,442

 

 

 

4,786

 

 

 

13,714

 

 

 

(29,808

)

 

 

76,437

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency (gains) losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,145

 

 

 

1,145

 

Total of adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,145

 

 

 

1,145

 

Adjusted EBITDA

 

$

53,082

 

 

$

7,221

 

 

$

27,442

 

 

$

4,786

 

 

$

13,714

 

 

$

(28,663

)

 

$

77,582

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

169,422

 

 

$

94,039

 

 

$

152,987

 

 

$

58,465

 

 

$

84,758

 

 

 

 

$

559,671

 

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

 

 

22

%

 

 

5

%

 

 

13

%

 

 

5

%

 

 

15

%

 

 

 

 

8

%

EBITDA Margin

 

 

31

%

 

 

8

%

 

 

18

%

 

 

8

%

 

 

16

%

 

 

 

 

14

%

Adjusted EBITDA Margin

 

 

31

%

 

 

8

%

 

 

18

%

 

 

8

%

 

 

16

%

 

 

 

 

14

%

EBITDA and Adjusted EBITDA and Margins by Segment

 

 

 

For the Year Ended December 31, 2022

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated

Expenses

and other

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

118,248

 

 

$

11,692

 

 

$

49,256

 

 

$

14,901

 

 

$

44,168

 

 

$

(127,402

)

 

$

110,863

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

67,684

 

 

 

11,946

 

 

 

28,560

 

 

 

4,599

 

 

 

2,853

 

 

 

5,327

 

 

 

120,969

 

Other pre-tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

802

 

 

 

802

 

EBITDA

 

 

185,932

 

 

 

23,638

 

 

 

77,816

 

 

 

19,500

 

 

 

47,021

 

 

 

(121,273

)

 

 

232,634

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency (gains) losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

4

 

Total of adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

4

 

Adjusted EBITDA

 

$

185,932

 

 

$

23,638

 

 

$

77,816

 

 

$

19,500

 

 

$

47,021

 

 

$

(121,269

)

 

$

232,638

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

621,921

 

 

$

382,361

 

 

$

489,317

 

 

$

229,884

 

 

$

342,601

 

 

 

 

$

2,066,084

 

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

 

 

19

%

 

 

3

%

 

 

10

%

 

 

6

%

 

 

13

%

 

 

 

 

5

%

EBITDA Margin

 

 

30

%

 

 

6

%

 

 

16

%

 

 

8

%

 

 

14

%

 

 

 

 

11

%

Adjusted EBITDA Margin

 

 

30

%

 

 

6

%

 

 

16

%

 

 

8

%

 

 

14

%

 

 

 

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended December 31, 2021

 

 

SSR

 

MP

 

OPG

 

IMDS

 

ADTech

 

Unallocated

Expenses

and other

 

Total

 

 

($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP

 

$

76,874

 

 

$

(15,876

)

 

$

31,197

 

 

$

18,572

 

 

$

60,992

 

 

$

(131,960

)

 

$

39,799

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

87,900

 

 

 

12,788

 

 

 

28,173

 

 

 

4,420

 

 

 

4,783

 

 

 

1,659

 

 

 

139,723

 

Other pre-tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,225

)

 

 

(6,225

)

EBITDA

 

 

164,774

 

 

 

(3,088

)

 

 

59,370

 

 

 

22,992

 

 

 

65,775

 

 

 

(136,526

)

 

 

173,297

 

Adjustments for the effects of:

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Evergrande losses, net

 

 

 

 

 

29,549

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29,549

 

Loss on sale of asset

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,415

 

 

 

1,415

 

Restructuring expenses and other

 

 

395

 

 

 

537

 

 

 

149

 

 

 

217

 

 

 

10

 

 

 

 

 

 

1,308

 

Foreign currency (gains) losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,032

 

 

 

5,032

 

Total of adjustments

 

 

395

 

 

 

30,086

 

 

 

149

 

 

 

217

 

 

 

10

 

 

 

6,447

 

 

 

37,304

 

Adjusted EBITDA

 

$

165,169

 

 

$

26,998

 

 

$

59,519

 

 

$

23,209

 

 

$

65,785

 

 

$

(130,079

)

 

$

210,601

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

538,515

 

 

$

344,251

 

 

$

378,121

 

 

$

241,393

 

 

$

366,995

 

 

 

 

$

1,869,275

 

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

 

 

14

%

 

 

(5

)%

 

 

8

%

 

 

8

%

 

 

17

%

 

 

 

 

2

%

EBITDA Margin

 

 

31

%

 

 

(1

)%

 

 

16

%

 

 

10

%

 

 

18

%

 

 

 

 

9

%

Adjusted EBITDA Margin

 

 

31

%

 

 

8

%

 

 

16

%

 

 

10

%

 

 

18

%

 

 

 

 

11

%

 

source