Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Civeo Reports Third Quarter 2023 Results By: Civeo Corporation via Business Wire October 27, 2023 at 06:30 AM EDT Third Quarter Highlights: Reported revenues of $183.6 million, net income of $9.0 million and operating cash flow of $36.8 million; Delivered Adjusted EBITDA of $32.9 million and free cash flow of $31.7 million; Reduced total debt by $32.9 million to $103.2 million as of September 30, 2023; Returned capital to shareholders through the previously announced initiation of a quarterly dividend and renewal of its share repurchase program; and Announced a definitive agreement to sell McClelland Lake Lodge for approximately C$49 million, or US$36 million. Civeo Corporation (NYSE:CVEO) today reported financial and operating results for the third quarter ended September 30, 2023. “On top of solid operating results, we achieved several strategic milestones in the third quarter," said Bradley J. Dodson, Civeo's President and Chief Executive Officer. "Canada exceeded our expectations primarily due to stronger-than-expected billed rooms at Sitka Lodge. In Australia, we experienced a second consecutive quarterly record in terms of billed rooms at our villages," said Mr. Dodson. Mr. Dodson concluded, “The agreement to sell McClelland Lake Lodge is a very positive outcome for the Company and we continue to pursue additional business opportunities related to this sale. We were also pleased to announce our new capital allocation framework, which includes the initiation of a regular quarterly dividend of $0.25 per share and the renewal of our share repurchase program. These strategic announcements reflect our commitment to returning capital to shareholders while maintaining the flexibility to deploy capital to fund growth opportunities and support our existing operations.” Third Quarter 2023 Results In the third quarter of 2023, Civeo generated revenues of $183.6 million and reported net income of $9.0 million, or $0.61 per diluted share. During the third quarter of 2023, Civeo produced operating cash flow of $36.8 million, Adjusted EBITDA of $32.9 million and free cash flow of $31.7 million. By comparison, in the third quarter of 2022, Civeo generated revenues of $184.2 million and reported net income of $5.2 million, or $0.32 per diluted share. During the third quarter of 2022, Civeo produced operating cash flow of $38.7 million, Adjusted EBITDA of $35.0 million and free cash flow of $38.6 million. The year-over-year decrease in Adjusted EBITDA in the third quarter of 2023 was primarily driven by the wind down of LNG-related Canadian mobile camp activity. This decrease was partially offset by increased billed rooms at the Australian Bowen Basin villages and increased Australian integrated services activity. Business Segment Results (Unless otherwise noted, the following discussion compares the quarterly results for the third quarter of 2023 to the results for the third quarter of 2022.) Canada During the third quarter of 2023, the Canadian segment generated revenues of $95.1 million, operating income of $10.8 million and Adjusted EBITDA of $23.0 million, compared to revenues of $103.0 million, operating income of $7.8 million and Adjusted EBITDA of $25.6 million in the third quarter of 2022. Results for the third quarter of 2023 reflect the impact of a weakened Canadian dollar relative to the U.S. dollar, which decreased revenues and Adjusted EBITDA by $2.6 million and $0.7 million, respectively. The third quarter of 2023 Adjusted EBITDA excluded $4.9 million of other expenses related to the demobilization of McClelland Lake Lodge. On a constant currency basis, the Canadian segment experienced a 5% period-over-period decrease in revenues primarily related to Canadian mobile camp activity winding down, partially offset by an increased average daily rate on relatively flat billed rooms year-over-year. Adjusted EBITDA for the Canadian segment decreased 10% primarily due to the aforementioned dynamics. Australia During the third quarter of 2023, the Australian segment generated revenues of $87.9 million, operating income of $9.1 million and Adjusted EBITDA of $18.8 million, compared to revenues of $73.8 million, operating income of $5.9 million and Adjusted EBITDA of $16.9 million in the third quarter of 2022. Results for the third quarter of 2023 reflect the impact of a weakened Australian dollar relative to the U.S. dollar, which decreased revenues and Adjusted EBITDA by $3.8 million and $0.8 million, respectively. On a constant currency basis, the Australian segment experienced a 24% period-over-period increase in revenues primarily driven by a 19% year-over-year increase in village billed rooms as well as increased integrated services revenue related to new contracts. Adjusted EBITDA for the Australian segment increased 11% due to the aforementioned dynamics. Financial Condition and Capital Allocation As of September 30, 2023, Civeo had total liquidity of approximately $110.6 million, consisting of $102.8 million available under its revolving credit facilities and $7.8 million of cash on hand. Civeo’s total debt outstanding on September 30, 2023 was $103.2 million, a $32.9 million decrease since June 30, 2023. Civeo reported a net leverage ratio of 0.9x as of September 30, 2023. During the third quarter of 2023, Civeo invested $9.5 million in capital expenditures compared to $8.8 million invested during the third quarter of 2022. Capital expenditures in both periods were primarily related to maintenance spending on the Company’s lodges and villages. Capital expenditures in the third quarter of 2023 also included $3.6 million related to customer-funded infrastructure upgrades at three Australian villages. The Company announced today that its board of directors has declared a quarterly cash dividend of $0.25 per common share, payable on December 18, 2023 to shareholders of record as of close of business on November 27, 2023. For purposes of the Income Tax Act (Canada), the Company has designated this dividend to be an "eligible dividend". In the third quarter of 2023, Civeo repurchased approximately 62,000 shares through its share repurchase program for approximately $1.3 million. Full Year 2023 Guidance For the full year of 2023, Civeo is increasing its previously provided revenue and Adjusted EBITDA guidance ranges. The revised revenue and Adjusted EBITDA guidance ranges are $675 million to $685 million and $95 million to $100 million, respectively. The Company is maintaining its full year 2023 capital expenditure guidance of $35 million to $40 million. Conference Call Civeo will host a conference call to discuss its third quarter 2023 financial results today at 11:00 a.m. Eastern time. This call is being webcast and can be accessed at Civeo's website at www.civeo.com. Participants may also join the conference call by dialing (877) 423-9813 in the United States or (201) 689-8573 internationally and asking for the Civeo call or using the conference ID 13742013#. A replay will be available after the call by dialing (844) 512-2921 in the United States or (412) 317-6671 internationally and using the conference ID 13742013#. About Civeo Civeo Corporation is a leading provider of hospitality services with prominent market positions in the Canadian oil sands and the Australian natural resource regions. Civeo offers comprehensive solutions for lodging hundreds or thousands of workers with its long-term and temporary accommodations and provides food services, housekeeping, facility management, laundry, water and wastewater treatment, power generation, communications systems, security and logistics services. Civeo currently operates a total of 24 lodges and villages in Canada, Australia and the U.S., with an aggregate of approximately 26,000 rooms. Civeo is publicly traded under the symbol CVEO on the New York Stock Exchange. For more information, please visit Civeo's website at www.civeo.com. Forward Looking Statements This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements herein, including the statements regarding Civeo’s future plans and outlook, strategic priorities, guidance, current trends, expectations with respect to share repurchases and dividends, and liquidity needs, are based on then current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the accommodations industry, risks associated with the level of supply and demand for oil, coal, iron ore and other minerals, including the level of activity, spending and developments in the Canadian oil sands, the level of demand for coal and other natural resources from, and investments and opportunities in, Australia, and fluctuations or sharp declines in the current and future prices of oil, natural gas, coal, iron ore and other minerals, risks associated with failure by our customers to reach positive final investment decisions on, or otherwise not complete, projects with respect to which we have been awarded contracts, which may cause those customers to terminate or postpone contracts, risks associated with currency exchange rates, risks associated with inflation and volatility in the banking sector, risks associated with the company’s ability to integrate acquisitions, risks associated with labor shortages, risks associated with the development of new projects, including whether such projects will continue in the future, risks associated with the trading price of the company’s common shares, availability and cost of capital, risks associated with general global economic conditions, geopolitical events, inflation, global weather conditions, natural disasters, global health concerns, and security threats and changes to government and environmental regulations, including climate change, and other factors discussed in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Civeo’s most recent annual report on Form 10-K and other reports the company may file from time to time with the U.S. Securities and Exchange Commission. Each forward-looking statement contained herein speaks only as of the date of this release. Except as required by law, Civeo expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise. Non-GAAP Financial Information EBITDA, Adjusted EBITDA, free cash flow, net debt, bank-adjusted EBITDA and net leverage ratio are non-GAAP financial measures. See “Non-GAAP Reconciliation” below for definitions and additional information concerning non-GAAP financial measures, including a reconciliation of the non-GAAP financial information presented in this press release to the most directly comparable financial information presented in accordance with GAAP. Non-GAAP financial information supplements and should be read together with, and is not an alternative or substitute for, the Company’s financial results reported in accordance with GAAP. Because non-GAAP financial information is not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures. - Financial Schedules Follow - CIVEO CORPORATION UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenues $ 183,572 $ 184,227 $ 530,006 $ 534,859 Costs and expenses: Cost of sales and services 130,296 133,496 395,235 389,392 Selling, general and administrative expenses 20,236 17,677 52,885 50,572 Depreciation and amortization expense 16,914 22,608 59,277 65,818 Other operating expense (income) 87 (339 ) 302 (187 ) 167,533 173,442 507,699 505,595 Operating income 16,039 10,785 22,307 29,264 Interest expense (3,365 ) (3,001 ) (10,625 ) (8,077 ) Interest income 44 13 126 15 Other income (expense) (4,709 ) 2,179 (1,832 ) 4,290 Income before income taxes 8,009 9,976 9,976 25,492 Income tax benefit (expense) 1,214 (3,713 ) (2,897 ) (7,091 ) Net income 9,223 6,263 7,079 18,401 Less: Net income (loss) attributable to noncontrolling interest 201 546 (53 ) 1,706 Net income attributable to Civeo Corporation 9,022 5,717 7,132 16,695 Less: Dividends attributable to Class A preferred shares — 492 — 1,469 Net income attributable to Civeo common shareholders $ 9,022 $ 5,225 $ 7,132 $ 15,226 Net income per share attributable to Civeo Corporation common shareholders: Basic $ 0.61 $ 0.32 $ 0.48 $ 0.92 Diluted $ 0.61 $ 0.32 $ 0.47 $ 0.91 Weighted average number of common shares outstanding: Basic 14,814 13,932 14,980 14,058 Diluted 14,891 14,064 15,051 14,220 CIVEO CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) September 30, 2023 December 31, 2022 (UNAUDITED) Current assets: Cash and cash equivalents $ 7,817 $ 7,954 Accounts receivable, net 153,946 119,755 Inventories 6,272 6,907 Assets held for sale 8,185 8,653 Prepaid expenses and other current assets 14,409 10,280 Total current assets 190,629 153,549 Property, plant and equipment, net 263,436 301,890 Goodwill, net 7,290 7,672 Other intangible assets, net 77,547 81,747 Operating lease right-of-use assets 12,866 15,722 Other noncurrent assets 4,826 5,604 Total assets $ 556,594 $ 566,184 Current liabilities: Accounts payable $ 53,124 $ 51,087 Accrued liabilities 48,693 39,211 Income taxes 173 178 Current portion of long-term debt 7,143 28,448 Deferred revenue 6,884 991 Other current liabilities 9,276 8,342 Total current liabilities 125,293 128,257 Long-term debt 95,852 102,505 Deferred income taxes 7,017 4,778 Operating lease liabilities 10,355 12,771 Other noncurrent liabilities 24,114 14,172 Total liabilities 262,631 262,483 Shareholders' equity: Common shares — — Additional paid-in capital 1,627,809 1,624,512 Accumulated deficit (935,944 ) (930,123 ) Treasury stock (9,063 ) (9,063 ) Accumulated other comprehensive loss (392,080 ) (385,187 ) Total Civeo Corporation shareholders' equity 290,722 300,139 Noncontrolling interest 3,241 3,562 Total shareholders' equity 293,963 303,701 Total liabilities and shareholders' equity $ 556,594 $ 566,184 CIVEO CORPORATION UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Nine Months Ended September 30, 2023 2022 Cash flows from operating activities: Net income $ 7,079 $ 18,401 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 59,277 65,818 Deferred income tax expense 2,688 6,930 Non-cash compensation charge 3,297 2,861 Losses (gains) on disposals of assets 2,264 (4,069 ) Provision (benefit) for credit losses, net of recoveries 120 (23 ) Other, net 1,900 2,397 Changes in operating assets and liabilities: Accounts receivable (37,411 ) (19,138 ) Inventories 420 (1,557 ) Accounts payable and accrued liabilities 4,767 3,515 Taxes payable (5 ) (62 ) Other current and noncurrent assets and liabilities, net 12,197 (12,701 ) Net cash flows provided by operating activities 56,593 62,372 Cash flows from investing activities: Capital expenditures (21,179 ) (17,466 ) Proceeds from dispositions of property, plant and equipment 7,070 11,975 Other, net — 190 Net cash flows used in investing activities (14,109 ) (5,301 ) Cash flows from financing activities: Term loan repayments (22,338 ) (23,059 ) Revolving credit borrowings (repayments), net (6,732 ) (14,824 ) Dividends paid (3,731 ) — Repurchases of common shares (9,222 ) (14,209 ) Taxes paid on vested shares — (1,013 ) Net cash flows used in financing activities (42,023 ) (53,105 ) Effect of exchange rate changes on cash (598 ) (1,887 ) Net change in cash and cash equivalents (137 ) 2,079 Cash and cash equivalents, beginning of period 7,954 6,282 Cash and cash equivalents, end of period $ 7,817 $ 8,361 CIVEO CORPORATION SEGMENT DATA (in thousands) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenues Canada $ 95,144 $ 103,009 $ 280,067 $ 307,984 Australia 87,885 73,805 247,418 205,154 Other (2) 543 7,413 2,521 21,721 Total revenues $ 183,572 $ 184,227 $ 530,006 $ 534,859 EBITDA (1) Canada $ 18,154 $ 25,567 $ 49,983 $ 71,445 Australia 18,785 16,858 52,600 47,832 Corporate, other and eliminations (2) (8,896 ) (7,399 ) (22,778 ) (21,611 ) Total EBITDA $ 28,043 $ 35,026 $ 79,805 $ 97,666 Adjusted EBITDA (1) Canada $ 23,022 $ 25,567 $ 54,851 $ 71,445 Australia 18,785 16,858 52,600 47,832 Corporate, other and eliminations (2) (8,896 ) (7,399 ) (22,778 ) (21,611 ) Total adjusted EBITDA $ 32,911 $ 35,026 $ 84,673 $ 97,666 Operating income (loss) Canada $ 10,811 $ 7,846 $ 9,486 $ 23,081 Australia 9,067 5,859 23,140 17,446 Corporate, other and eliminations (2) (3,839 ) (2,920 ) (10,319 ) (11,263 ) Total operating income $ 16,039 $ 10,785 $ 22,307 $ 29,264 (1) Please see Non-GAAP Reconciliation Schedule. (2) Prior to the first quarter of 2023, we presented the U.S. operating segment as a separate reportable segment. Our operating segment in the U.S. no longer meets the reportable segment quantitative thresholds, and is included within the Other and Corporate, other and eliminations categories. Prior periods have been adjusted. CIVEO CORPORATION NON-GAAP RECONCILIATIONS (in thousands) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, Twelve Months Ended September 30, 2023 2022 2023 2022 2023 EBITDA (1) $ 28,043 $ 35,026 $ 79,805 $ 97,666 $ 89,187 Adjusted EBITDA (1) $ 32,911 $ 35,026 $ 84,673 $ 97,666 $ 99,776 Free Cash Flow (2) $ 31,721 $ 38,595 $ 42,484 $ 56,881 Net Leverage Ratio (3) 0.9x (1) The term EBITDA is a non-GAAP financial measure that is defined as net income (loss) attributable to Civeo Corporation plus interest, taxes, depreciation and amortization. The term Adjusted EBITDA is a non-GAAP financial measure that is defined as EBITDA adjusted to exclude certain other unusual or non-operating items. EBITDA and Adjusted EBITDA are not measures of financial performance under generally accepted accounting principles and should not be considered in isolation from or as a substitute for net income or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. Additionally, EBITDA and Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Civeo has included EBITDA and Adjusted EBITDA as supplemental disclosures because its management believes that EBITDA and Adjusted EBITDA provide useful information regarding its ability to service debt and to fund capital expenditures and provide investors a helpful measure for comparing Civeo's operating performance with the performance of other companies that have different financing and capital structures or tax rates. Civeo uses EBITDA and Adjusted EBITDA to compare and to monitor the performance of its business segments to other comparable public companies and as a benchmark for the award of incentive compensation under its annual incentive compensation plan. The following table sets forth a reconciliation of EBITDA and Adjusted EBITDA to net income (loss) attributable to Civeo Corporation, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles (in thousands) (unaudited): Three Months Ended September 30, Nine Months Ended September 30, Twelve Months Ended September 30, 2023 2022 2023 2022 2023 Net income (loss) attributable to Civeo Corporation $ 9,022 $ 5,717 $ 7,132 $ 16,695 $ (5,566 ) Income tax (benefit) expense (1,214 ) 3,713 2,897 7,091 208 Depreciation and amortization 16,914 22,608 59,277 65,818 80,673 Interest income (44 ) (13 ) (126 ) (15 ) (150 ) Interest expense 3,365 3,001 10,625 8,077 14,022 EBITDA $ 28,043 $ 35,026 $ 79,805 $ 97,666 $ 89,187 Adjustments to EBITDA Impairment of long-lived assets (a) — — — — 5,721 Demobilization expenses (b) 4,868 — 4,868 — 4,868 Adjusted EBITDA $ 32,911 $ 35,026 $ 84,673 $ 97,666 $ 99,776 (a) Relates to asset impairments in the fourth quarter of 2022. In the fourth quarter of 2022, we recorded a pre-tax loss related to the impairment of long-lived assets in our Australian segment of $3.8 million and a pre-tax loss related to the impairment of long-lived assets in the U.S. of $1.9 million. (b) In the third quarter of 2023, we recorded expenses associated with the demobilization of our McClelland Lake Lodge to prepare the assets for sale, which are included in Other income (expense) on the unaudited statements of operations. (2) The term Free Cash Flow is a non-GAAP financial measure that is defined as net cash flows provided by operating activities less capital expenditures plus proceeds from asset sales. Free Cash Flow is not a measure of financial performance under generally accepted accounting principles and should not be considered in isolation from or as a substitute for cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. Additionally, Free Cash Flow may not be comparable to other similarly titled measures of other companies. Civeo has included Free Cash Flow as a supplemental disclosure because its management believes that Free Cash Flow provides useful information regarding the cash flow generating ability of its business relative to its capital expenditure and debt service obligations. Civeo uses Free Cash Flow to compare and to understand, manage, make operating decisions and evaluate Civeo's business. The following table sets forth a reconciliation of Free Cash Flow to Net Cash Flows Provided by Operating Activities, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles (in thousands) (unaudited): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net Cash Flows Provided by Operating Activities $ 36,832 $ 38,741 $ 56,593 $ 62,372 Capital expenditures (9,462 ) (8,819 ) (21,179 ) (17,466 ) Proceeds from dispositions of property, plant and equipment 4,351 8,673 7,070 11,975 Free Cash Flow $ 31,721 $ 38,595 $ 42,484 $ 56,881 (3) The term net leverage ratio is a non-GAAP financial measure that is defined as net debt divided by bank-adjusted EBITDA. Net debt, bank-adjusted EBITDA and net leverage ratio are not financial measures under GAAP and should not be considered in isolation from or as a substitute for total debt, net income (loss) or cash flow measures prepared in accordance with GAAP or as a measure of profitability or liquidity. Additionally, net debt, bank-adjusted EBITDA and net leverage ratio may not be comparable to other similarly titled measures of other companies. Civeo has included net debt, bank-adjusted EBITDA and net leverage ratio as a supplemental disclosure because its management believes that this data provides useful information regarding the level of the Company’s indebtedness and its ability to service debt. Additionally, per Civeo’s credit agreement, the Company is required to maintain a net leverage ratio below 3.0x every quarter to remain in compliance with the credit agreement. The following table sets forth a reconciliation of net debt, bank-adjusted EBITDA and net leverage ratio to the most directly comparable measures of financial performance calculated under GAAP (in thousands) (unaudited): As of September 30, 2023 Total debt $ 103,248 Less: Cash and cash equivalents 7,817 Net debt $ 95,431 Adjusted EBITDA for the twelve months ended September 30, 2023 (a) $ 99,776 Adjustments to Adjusted EBITDA Stock-based compensation 4,224 Interest income 150 Bank-adjusted EBITDA $ 104,150 Net leverage ratio (b) 0.9x (a) See footnote 1 above for reconciliation of Adjusted EBITDA to net income (loss) attributable to Civeo Corporation (b) Calculated as net debt divided by bank-adjusted EBITDA CIVEO CORPORATION NON-GAAP RECONCILIATIONS - GUIDANCE (in millions) (unaudited) Year Ending December 31, 2023 EBITDA Range (1) $ 120.0 $ 125.0 Adjusted EBITDA Range (1) $ 95.0 $ 100.0 (1) The following table sets forth a reconciliation of estimated EBITDA and Adjusted EBITDA to estimated net loss, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles (in millions) (unaudited): Year Ending December 31, 2023 (estimated) Net income $ 25.0 $ 29.0 Income tax expense 6.0 7.0 Depreciation and amortization 76.0 76.0 Interest expense 13.0 13.0 EBITDA $ 120.0 $ 125.0 Adjustments to EBITDA McClelland Lake Lodge transcation impact (a) (25.0 ) (25.0 ) Adjusted EBITDA $ 95.0 $ 100.0 (a) Estimated net gains associated with the sale of our McClelland Lake Lodge, which will be included in Other income (expense) on the unaudited statement of operations. CIVEO CORPORATION SUPPLEMENTAL QUARTERLY SEGMENT AND OPERATING DATA (U.S. dollars in thousands, except for room counts and average daily rates) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Supplemental Operating Data - Canadian Segment Revenues Accommodation revenue (1) $ 71,417 $ 72,724 $ 208,000 $ 219,349 Mobile facility rental revenue (2) 17,314 25,283 54,752 73,359 Food and other services revenue (3) 6,413 5,002 17,315 15,276 Total Canadian revenues $ 95,144 $ 103,009 $ 280,067 $ 307,984 Costs Accommodation cost $ 46,063 $ 50,308 $ 150,592 $ 156,543 Mobile facility rental cost 11,636 15,597 37,736 44,939 Food and other services cost 5,867 4,447 15,701 13,782 Indirect other cost 2,406 2,526 7,693 7,829 Total Canadian cost of sales and services $ 65,972 $ 72,878 $ 211,722 $ 223,093 Average daily rates (4) $ 98 $ 99 $ 98 $ 102 Billed rooms (5) 726,364 730,708 2,093,459 2,137,530 Canadian dollar to U.S. dollar $ 0.746 $ 0.766 $ 0.743 $ 0.779 Supplemental Operating Data - Australian Segment Revenues Accommodation revenue (1) $ 46,012 $ 38,316 $ 130,953 $ 114,967 Food and other services revenue (3) 41,873 35,489 116,465 90,187 Total Australian revenues $ 87,885 $ 73,805 $ 247,418 $ 205,154 Costs Accommodation cost $ 22,404 $ 17,818 $ 63,670 $ 55,065 Food and other services cost 38,898 33,465 110,132 84,836 Indirect other cost 2,293 2,050 6,646 5,638 Total Australian cost of sales and services $ 63,595 $ 53,333 $ 180,448 $ 145,539 Average daily rates (4) $ 74 $ 73 $ 76 $ 76 Billed rooms (5) 623,436 525,359 1,734,004 1,505,143 Australian dollar to U.S. dollar $ 0.655 $ 0.683 $ 0.669 $ 0.707 (1) Includes revenues related to lodge and village rooms and hospitality services for owned rooms for the periods presented. (2) Includes revenues related to mobile assets for the periods presented. (3) Includes revenues related to food services, laundry and water and wastewater treatment services, and facilities management for the periods presented. (4) Average daily rate is based on billed rooms and accommodation revenue. (5) Billed rooms represents total billed days for owned assets for the periods presented. View source version on businesswire.com: https://www.businesswire.com/news/home/20231027959946/en/Contacts Carolyn J. Stone Civeo Corporation Senior Vice President & Chief Financial Officer 713-510-2400 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Civeo Reports Third Quarter 2023 Results By: Civeo Corporation via Business Wire October 27, 2023 at 06:30 AM EDT Third Quarter Highlights: Reported revenues of $183.6 million, net income of $9.0 million and operating cash flow of $36.8 million; Delivered Adjusted EBITDA of $32.9 million and free cash flow of $31.7 million; Reduced total debt by $32.9 million to $103.2 million as of September 30, 2023; Returned capital to shareholders through the previously announced initiation of a quarterly dividend and renewal of its share repurchase program; and Announced a definitive agreement to sell McClelland Lake Lodge for approximately C$49 million, or US$36 million. Civeo Corporation (NYSE:CVEO) today reported financial and operating results for the third quarter ended September 30, 2023. “On top of solid operating results, we achieved several strategic milestones in the third quarter," said Bradley J. Dodson, Civeo's President and Chief Executive Officer. "Canada exceeded our expectations primarily due to stronger-than-expected billed rooms at Sitka Lodge. In Australia, we experienced a second consecutive quarterly record in terms of billed rooms at our villages," said Mr. Dodson. Mr. Dodson concluded, “The agreement to sell McClelland Lake Lodge is a very positive outcome for the Company and we continue to pursue additional business opportunities related to this sale. We were also pleased to announce our new capital allocation framework, which includes the initiation of a regular quarterly dividend of $0.25 per share and the renewal of our share repurchase program. These strategic announcements reflect our commitment to returning capital to shareholders while maintaining the flexibility to deploy capital to fund growth opportunities and support our existing operations.” Third Quarter 2023 Results In the third quarter of 2023, Civeo generated revenues of $183.6 million and reported net income of $9.0 million, or $0.61 per diluted share. During the third quarter of 2023, Civeo produced operating cash flow of $36.8 million, Adjusted EBITDA of $32.9 million and free cash flow of $31.7 million. By comparison, in the third quarter of 2022, Civeo generated revenues of $184.2 million and reported net income of $5.2 million, or $0.32 per diluted share. During the third quarter of 2022, Civeo produced operating cash flow of $38.7 million, Adjusted EBITDA of $35.0 million and free cash flow of $38.6 million. The year-over-year decrease in Adjusted EBITDA in the third quarter of 2023 was primarily driven by the wind down of LNG-related Canadian mobile camp activity. This decrease was partially offset by increased billed rooms at the Australian Bowen Basin villages and increased Australian integrated services activity. Business Segment Results (Unless otherwise noted, the following discussion compares the quarterly results for the third quarter of 2023 to the results for the third quarter of 2022.) Canada During the third quarter of 2023, the Canadian segment generated revenues of $95.1 million, operating income of $10.8 million and Adjusted EBITDA of $23.0 million, compared to revenues of $103.0 million, operating income of $7.8 million and Adjusted EBITDA of $25.6 million in the third quarter of 2022. Results for the third quarter of 2023 reflect the impact of a weakened Canadian dollar relative to the U.S. dollar, which decreased revenues and Adjusted EBITDA by $2.6 million and $0.7 million, respectively. The third quarter of 2023 Adjusted EBITDA excluded $4.9 million of other expenses related to the demobilization of McClelland Lake Lodge. On a constant currency basis, the Canadian segment experienced a 5% period-over-period decrease in revenues primarily related to Canadian mobile camp activity winding down, partially offset by an increased average daily rate on relatively flat billed rooms year-over-year. Adjusted EBITDA for the Canadian segment decreased 10% primarily due to the aforementioned dynamics. Australia During the third quarter of 2023, the Australian segment generated revenues of $87.9 million, operating income of $9.1 million and Adjusted EBITDA of $18.8 million, compared to revenues of $73.8 million, operating income of $5.9 million and Adjusted EBITDA of $16.9 million in the third quarter of 2022. Results for the third quarter of 2023 reflect the impact of a weakened Australian dollar relative to the U.S. dollar, which decreased revenues and Adjusted EBITDA by $3.8 million and $0.8 million, respectively. On a constant currency basis, the Australian segment experienced a 24% period-over-period increase in revenues primarily driven by a 19% year-over-year increase in village billed rooms as well as increased integrated services revenue related to new contracts. Adjusted EBITDA for the Australian segment increased 11% due to the aforementioned dynamics. Financial Condition and Capital Allocation As of September 30, 2023, Civeo had total liquidity of approximately $110.6 million, consisting of $102.8 million available under its revolving credit facilities and $7.8 million of cash on hand. Civeo’s total debt outstanding on September 30, 2023 was $103.2 million, a $32.9 million decrease since June 30, 2023. Civeo reported a net leverage ratio of 0.9x as of September 30, 2023. During the third quarter of 2023, Civeo invested $9.5 million in capital expenditures compared to $8.8 million invested during the third quarter of 2022. Capital expenditures in both periods were primarily related to maintenance spending on the Company’s lodges and villages. Capital expenditures in the third quarter of 2023 also included $3.6 million related to customer-funded infrastructure upgrades at three Australian villages. The Company announced today that its board of directors has declared a quarterly cash dividend of $0.25 per common share, payable on December 18, 2023 to shareholders of record as of close of business on November 27, 2023. For purposes of the Income Tax Act (Canada), the Company has designated this dividend to be an "eligible dividend". In the third quarter of 2023, Civeo repurchased approximately 62,000 shares through its share repurchase program for approximately $1.3 million. Full Year 2023 Guidance For the full year of 2023, Civeo is increasing its previously provided revenue and Adjusted EBITDA guidance ranges. The revised revenue and Adjusted EBITDA guidance ranges are $675 million to $685 million and $95 million to $100 million, respectively. The Company is maintaining its full year 2023 capital expenditure guidance of $35 million to $40 million. Conference Call Civeo will host a conference call to discuss its third quarter 2023 financial results today at 11:00 a.m. Eastern time. This call is being webcast and can be accessed at Civeo's website at www.civeo.com. Participants may also join the conference call by dialing (877) 423-9813 in the United States or (201) 689-8573 internationally and asking for the Civeo call or using the conference ID 13742013#. A replay will be available after the call by dialing (844) 512-2921 in the United States or (412) 317-6671 internationally and using the conference ID 13742013#. About Civeo Civeo Corporation is a leading provider of hospitality services with prominent market positions in the Canadian oil sands and the Australian natural resource regions. Civeo offers comprehensive solutions for lodging hundreds or thousands of workers with its long-term and temporary accommodations and provides food services, housekeeping, facility management, laundry, water and wastewater treatment, power generation, communications systems, security and logistics services. Civeo currently operates a total of 24 lodges and villages in Canada, Australia and the U.S., with an aggregate of approximately 26,000 rooms. Civeo is publicly traded under the symbol CVEO on the New York Stock Exchange. For more information, please visit Civeo's website at www.civeo.com. Forward Looking Statements This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements herein, including the statements regarding Civeo’s future plans and outlook, strategic priorities, guidance, current trends, expectations with respect to share repurchases and dividends, and liquidity needs, are based on then current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the accommodations industry, risks associated with the level of supply and demand for oil, coal, iron ore and other minerals, including the level of activity, spending and developments in the Canadian oil sands, the level of demand for coal and other natural resources from, and investments and opportunities in, Australia, and fluctuations or sharp declines in the current and future prices of oil, natural gas, coal, iron ore and other minerals, risks associated with failure by our customers to reach positive final investment decisions on, or otherwise not complete, projects with respect to which we have been awarded contracts, which may cause those customers to terminate or postpone contracts, risks associated with currency exchange rates, risks associated with inflation and volatility in the banking sector, risks associated with the company’s ability to integrate acquisitions, risks associated with labor shortages, risks associated with the development of new projects, including whether such projects will continue in the future, risks associated with the trading price of the company’s common shares, availability and cost of capital, risks associated with general global economic conditions, geopolitical events, inflation, global weather conditions, natural disasters, global health concerns, and security threats and changes to government and environmental regulations, including climate change, and other factors discussed in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Civeo’s most recent annual report on Form 10-K and other reports the company may file from time to time with the U.S. Securities and Exchange Commission. Each forward-looking statement contained herein speaks only as of the date of this release. Except as required by law, Civeo expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise. Non-GAAP Financial Information EBITDA, Adjusted EBITDA, free cash flow, net debt, bank-adjusted EBITDA and net leverage ratio are non-GAAP financial measures. See “Non-GAAP Reconciliation” below for definitions and additional information concerning non-GAAP financial measures, including a reconciliation of the non-GAAP financial information presented in this press release to the most directly comparable financial information presented in accordance with GAAP. Non-GAAP financial information supplements and should be read together with, and is not an alternative or substitute for, the Company’s financial results reported in accordance with GAAP. Because non-GAAP financial information is not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures. - Financial Schedules Follow - CIVEO CORPORATION UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenues $ 183,572 $ 184,227 $ 530,006 $ 534,859 Costs and expenses: Cost of sales and services 130,296 133,496 395,235 389,392 Selling, general and administrative expenses 20,236 17,677 52,885 50,572 Depreciation and amortization expense 16,914 22,608 59,277 65,818 Other operating expense (income) 87 (339 ) 302 (187 ) 167,533 173,442 507,699 505,595 Operating income 16,039 10,785 22,307 29,264 Interest expense (3,365 ) (3,001 ) (10,625 ) (8,077 ) Interest income 44 13 126 15 Other income (expense) (4,709 ) 2,179 (1,832 ) 4,290 Income before income taxes 8,009 9,976 9,976 25,492 Income tax benefit (expense) 1,214 (3,713 ) (2,897 ) (7,091 ) Net income 9,223 6,263 7,079 18,401 Less: Net income (loss) attributable to noncontrolling interest 201 546 (53 ) 1,706 Net income attributable to Civeo Corporation 9,022 5,717 7,132 16,695 Less: Dividends attributable to Class A preferred shares — 492 — 1,469 Net income attributable to Civeo common shareholders $ 9,022 $ 5,225 $ 7,132 $ 15,226 Net income per share attributable to Civeo Corporation common shareholders: Basic $ 0.61 $ 0.32 $ 0.48 $ 0.92 Diluted $ 0.61 $ 0.32 $ 0.47 $ 0.91 Weighted average number of common shares outstanding: Basic 14,814 13,932 14,980 14,058 Diluted 14,891 14,064 15,051 14,220 CIVEO CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) September 30, 2023 December 31, 2022 (UNAUDITED) Current assets: Cash and cash equivalents $ 7,817 $ 7,954 Accounts receivable, net 153,946 119,755 Inventories 6,272 6,907 Assets held for sale 8,185 8,653 Prepaid expenses and other current assets 14,409 10,280 Total current assets 190,629 153,549 Property, plant and equipment, net 263,436 301,890 Goodwill, net 7,290 7,672 Other intangible assets, net 77,547 81,747 Operating lease right-of-use assets 12,866 15,722 Other noncurrent assets 4,826 5,604 Total assets $ 556,594 $ 566,184 Current liabilities: Accounts payable $ 53,124 $ 51,087 Accrued liabilities 48,693 39,211 Income taxes 173 178 Current portion of long-term debt 7,143 28,448 Deferred revenue 6,884 991 Other current liabilities 9,276 8,342 Total current liabilities 125,293 128,257 Long-term debt 95,852 102,505 Deferred income taxes 7,017 4,778 Operating lease liabilities 10,355 12,771 Other noncurrent liabilities 24,114 14,172 Total liabilities 262,631 262,483 Shareholders' equity: Common shares — — Additional paid-in capital 1,627,809 1,624,512 Accumulated deficit (935,944 ) (930,123 ) Treasury stock (9,063 ) (9,063 ) Accumulated other comprehensive loss (392,080 ) (385,187 ) Total Civeo Corporation shareholders' equity 290,722 300,139 Noncontrolling interest 3,241 3,562 Total shareholders' equity 293,963 303,701 Total liabilities and shareholders' equity $ 556,594 $ 566,184 CIVEO CORPORATION UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Nine Months Ended September 30, 2023 2022 Cash flows from operating activities: Net income $ 7,079 $ 18,401 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 59,277 65,818 Deferred income tax expense 2,688 6,930 Non-cash compensation charge 3,297 2,861 Losses (gains) on disposals of assets 2,264 (4,069 ) Provision (benefit) for credit losses, net of recoveries 120 (23 ) Other, net 1,900 2,397 Changes in operating assets and liabilities: Accounts receivable (37,411 ) (19,138 ) Inventories 420 (1,557 ) Accounts payable and accrued liabilities 4,767 3,515 Taxes payable (5 ) (62 ) Other current and noncurrent assets and liabilities, net 12,197 (12,701 ) Net cash flows provided by operating activities 56,593 62,372 Cash flows from investing activities: Capital expenditures (21,179 ) (17,466 ) Proceeds from dispositions of property, plant and equipment 7,070 11,975 Other, net — 190 Net cash flows used in investing activities (14,109 ) (5,301 ) Cash flows from financing activities: Term loan repayments (22,338 ) (23,059 ) Revolving credit borrowings (repayments), net (6,732 ) (14,824 ) Dividends paid (3,731 ) — Repurchases of common shares (9,222 ) (14,209 ) Taxes paid on vested shares — (1,013 ) Net cash flows used in financing activities (42,023 ) (53,105 ) Effect of exchange rate changes on cash (598 ) (1,887 ) Net change in cash and cash equivalents (137 ) 2,079 Cash and cash equivalents, beginning of period 7,954 6,282 Cash and cash equivalents, end of period $ 7,817 $ 8,361 CIVEO CORPORATION SEGMENT DATA (in thousands) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenues Canada $ 95,144 $ 103,009 $ 280,067 $ 307,984 Australia 87,885 73,805 247,418 205,154 Other (2) 543 7,413 2,521 21,721 Total revenues $ 183,572 $ 184,227 $ 530,006 $ 534,859 EBITDA (1) Canada $ 18,154 $ 25,567 $ 49,983 $ 71,445 Australia 18,785 16,858 52,600 47,832 Corporate, other and eliminations (2) (8,896 ) (7,399 ) (22,778 ) (21,611 ) Total EBITDA $ 28,043 $ 35,026 $ 79,805 $ 97,666 Adjusted EBITDA (1) Canada $ 23,022 $ 25,567 $ 54,851 $ 71,445 Australia 18,785 16,858 52,600 47,832 Corporate, other and eliminations (2) (8,896 ) (7,399 ) (22,778 ) (21,611 ) Total adjusted EBITDA $ 32,911 $ 35,026 $ 84,673 $ 97,666 Operating income (loss) Canada $ 10,811 $ 7,846 $ 9,486 $ 23,081 Australia 9,067 5,859 23,140 17,446 Corporate, other and eliminations (2) (3,839 ) (2,920 ) (10,319 ) (11,263 ) Total operating income $ 16,039 $ 10,785 $ 22,307 $ 29,264 (1) Please see Non-GAAP Reconciliation Schedule. (2) Prior to the first quarter of 2023, we presented the U.S. operating segment as a separate reportable segment. Our operating segment in the U.S. no longer meets the reportable segment quantitative thresholds, and is included within the Other and Corporate, other and eliminations categories. Prior periods have been adjusted. CIVEO CORPORATION NON-GAAP RECONCILIATIONS (in thousands) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, Twelve Months Ended September 30, 2023 2022 2023 2022 2023 EBITDA (1) $ 28,043 $ 35,026 $ 79,805 $ 97,666 $ 89,187 Adjusted EBITDA (1) $ 32,911 $ 35,026 $ 84,673 $ 97,666 $ 99,776 Free Cash Flow (2) $ 31,721 $ 38,595 $ 42,484 $ 56,881 Net Leverage Ratio (3) 0.9x (1) The term EBITDA is a non-GAAP financial measure that is defined as net income (loss) attributable to Civeo Corporation plus interest, taxes, depreciation and amortization. The term Adjusted EBITDA is a non-GAAP financial measure that is defined as EBITDA adjusted to exclude certain other unusual or non-operating items. EBITDA and Adjusted EBITDA are not measures of financial performance under generally accepted accounting principles and should not be considered in isolation from or as a substitute for net income or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. Additionally, EBITDA and Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Civeo has included EBITDA and Adjusted EBITDA as supplemental disclosures because its management believes that EBITDA and Adjusted EBITDA provide useful information regarding its ability to service debt and to fund capital expenditures and provide investors a helpful measure for comparing Civeo's operating performance with the performance of other companies that have different financing and capital structures or tax rates. Civeo uses EBITDA and Adjusted EBITDA to compare and to monitor the performance of its business segments to other comparable public companies and as a benchmark for the award of incentive compensation under its annual incentive compensation plan. The following table sets forth a reconciliation of EBITDA and Adjusted EBITDA to net income (loss) attributable to Civeo Corporation, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles (in thousands) (unaudited): Three Months Ended September 30, Nine Months Ended September 30, Twelve Months Ended September 30, 2023 2022 2023 2022 2023 Net income (loss) attributable to Civeo Corporation $ 9,022 $ 5,717 $ 7,132 $ 16,695 $ (5,566 ) Income tax (benefit) expense (1,214 ) 3,713 2,897 7,091 208 Depreciation and amortization 16,914 22,608 59,277 65,818 80,673 Interest income (44 ) (13 ) (126 ) (15 ) (150 ) Interest expense 3,365 3,001 10,625 8,077 14,022 EBITDA $ 28,043 $ 35,026 $ 79,805 $ 97,666 $ 89,187 Adjustments to EBITDA Impairment of long-lived assets (a) — — — — 5,721 Demobilization expenses (b) 4,868 — 4,868 — 4,868 Adjusted EBITDA $ 32,911 $ 35,026 $ 84,673 $ 97,666 $ 99,776 (a) Relates to asset impairments in the fourth quarter of 2022. In the fourth quarter of 2022, we recorded a pre-tax loss related to the impairment of long-lived assets in our Australian segment of $3.8 million and a pre-tax loss related to the impairment of long-lived assets in the U.S. of $1.9 million. (b) In the third quarter of 2023, we recorded expenses associated with the demobilization of our McClelland Lake Lodge to prepare the assets for sale, which are included in Other income (expense) on the unaudited statements of operations. (2) The term Free Cash Flow is a non-GAAP financial measure that is defined as net cash flows provided by operating activities less capital expenditures plus proceeds from asset sales. Free Cash Flow is not a measure of financial performance under generally accepted accounting principles and should not be considered in isolation from or as a substitute for cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. Additionally, Free Cash Flow may not be comparable to other similarly titled measures of other companies. Civeo has included Free Cash Flow as a supplemental disclosure because its management believes that Free Cash Flow provides useful information regarding the cash flow generating ability of its business relative to its capital expenditure and debt service obligations. Civeo uses Free Cash Flow to compare and to understand, manage, make operating decisions and evaluate Civeo's business. The following table sets forth a reconciliation of Free Cash Flow to Net Cash Flows Provided by Operating Activities, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles (in thousands) (unaudited): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net Cash Flows Provided by Operating Activities $ 36,832 $ 38,741 $ 56,593 $ 62,372 Capital expenditures (9,462 ) (8,819 ) (21,179 ) (17,466 ) Proceeds from dispositions of property, plant and equipment 4,351 8,673 7,070 11,975 Free Cash Flow $ 31,721 $ 38,595 $ 42,484 $ 56,881 (3) The term net leverage ratio is a non-GAAP financial measure that is defined as net debt divided by bank-adjusted EBITDA. Net debt, bank-adjusted EBITDA and net leverage ratio are not financial measures under GAAP and should not be considered in isolation from or as a substitute for total debt, net income (loss) or cash flow measures prepared in accordance with GAAP or as a measure of profitability or liquidity. Additionally, net debt, bank-adjusted EBITDA and net leverage ratio may not be comparable to other similarly titled measures of other companies. Civeo has included net debt, bank-adjusted EBITDA and net leverage ratio as a supplemental disclosure because its management believes that this data provides useful information regarding the level of the Company’s indebtedness and its ability to service debt. Additionally, per Civeo’s credit agreement, the Company is required to maintain a net leverage ratio below 3.0x every quarter to remain in compliance with the credit agreement. The following table sets forth a reconciliation of net debt, bank-adjusted EBITDA and net leverage ratio to the most directly comparable measures of financial performance calculated under GAAP (in thousands) (unaudited): As of September 30, 2023 Total debt $ 103,248 Less: Cash and cash equivalents 7,817 Net debt $ 95,431 Adjusted EBITDA for the twelve months ended September 30, 2023 (a) $ 99,776 Adjustments to Adjusted EBITDA Stock-based compensation 4,224 Interest income 150 Bank-adjusted EBITDA $ 104,150 Net leverage ratio (b) 0.9x (a) See footnote 1 above for reconciliation of Adjusted EBITDA to net income (loss) attributable to Civeo Corporation (b) Calculated as net debt divided by bank-adjusted EBITDA CIVEO CORPORATION NON-GAAP RECONCILIATIONS - GUIDANCE (in millions) (unaudited) Year Ending December 31, 2023 EBITDA Range (1) $ 120.0 $ 125.0 Adjusted EBITDA Range (1) $ 95.0 $ 100.0 (1) The following table sets forth a reconciliation of estimated EBITDA and Adjusted EBITDA to estimated net loss, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles (in millions) (unaudited): Year Ending December 31, 2023 (estimated) Net income $ 25.0 $ 29.0 Income tax expense 6.0 7.0 Depreciation and amortization 76.0 76.0 Interest expense 13.0 13.0 EBITDA $ 120.0 $ 125.0 Adjustments to EBITDA McClelland Lake Lodge transcation impact (a) (25.0 ) (25.0 ) Adjusted EBITDA $ 95.0 $ 100.0 (a) Estimated net gains associated with the sale of our McClelland Lake Lodge, which will be included in Other income (expense) on the unaudited statement of operations. CIVEO CORPORATION SUPPLEMENTAL QUARTERLY SEGMENT AND OPERATING DATA (U.S. dollars in thousands, except for room counts and average daily rates) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Supplemental Operating Data - Canadian Segment Revenues Accommodation revenue (1) $ 71,417 $ 72,724 $ 208,000 $ 219,349 Mobile facility rental revenue (2) 17,314 25,283 54,752 73,359 Food and other services revenue (3) 6,413 5,002 17,315 15,276 Total Canadian revenues $ 95,144 $ 103,009 $ 280,067 $ 307,984 Costs Accommodation cost $ 46,063 $ 50,308 $ 150,592 $ 156,543 Mobile facility rental cost 11,636 15,597 37,736 44,939 Food and other services cost 5,867 4,447 15,701 13,782 Indirect other cost 2,406 2,526 7,693 7,829 Total Canadian cost of sales and services $ 65,972 $ 72,878 $ 211,722 $ 223,093 Average daily rates (4) $ 98 $ 99 $ 98 $ 102 Billed rooms (5) 726,364 730,708 2,093,459 2,137,530 Canadian dollar to U.S. dollar $ 0.746 $ 0.766 $ 0.743 $ 0.779 Supplemental Operating Data - Australian Segment Revenues Accommodation revenue (1) $ 46,012 $ 38,316 $ 130,953 $ 114,967 Food and other services revenue (3) 41,873 35,489 116,465 90,187 Total Australian revenues $ 87,885 $ 73,805 $ 247,418 $ 205,154 Costs Accommodation cost $ 22,404 $ 17,818 $ 63,670 $ 55,065 Food and other services cost 38,898 33,465 110,132 84,836 Indirect other cost 2,293 2,050 6,646 5,638 Total Australian cost of sales and services $ 63,595 $ 53,333 $ 180,448 $ 145,539 Average daily rates (4) $ 74 $ 73 $ 76 $ 76 Billed rooms (5) 623,436 525,359 1,734,004 1,505,143 Australian dollar to U.S. dollar $ 0.655 $ 0.683 $ 0.669 $ 0.707 (1) Includes revenues related to lodge and village rooms and hospitality services for owned rooms for the periods presented. (2) Includes revenues related to mobile assets for the periods presented. (3) Includes revenues related to food services, laundry and water and wastewater treatment services, and facilities management for the periods presented. (4) Average daily rate is based on billed rooms and accommodation revenue. (5) Billed rooms represents total billed days for owned assets for the periods presented. View source version on businesswire.com: https://www.businesswire.com/news/home/20231027959946/en/Contacts Carolyn J. Stone Civeo Corporation Senior Vice President & Chief Financial Officer 713-510-2400
Third Quarter Highlights: Reported revenues of $183.6 million, net income of $9.0 million and operating cash flow of $36.8 million; Delivered Adjusted EBITDA of $32.9 million and free cash flow of $31.7 million; Reduced total debt by $32.9 million to $103.2 million as of September 30, 2023; Returned capital to shareholders through the previously announced initiation of a quarterly dividend and renewal of its share repurchase program; and Announced a definitive agreement to sell McClelland Lake Lodge for approximately C$49 million, or US$36 million.
Civeo Corporation (NYSE:CVEO) today reported financial and operating results for the third quarter ended September 30, 2023. “On top of solid operating results, we achieved several strategic milestones in the third quarter," said Bradley J. Dodson, Civeo's President and Chief Executive Officer. "Canada exceeded our expectations primarily due to stronger-than-expected billed rooms at Sitka Lodge. In Australia, we experienced a second consecutive quarterly record in terms of billed rooms at our villages," said Mr. Dodson. Mr. Dodson concluded, “The agreement to sell McClelland Lake Lodge is a very positive outcome for the Company and we continue to pursue additional business opportunities related to this sale. We were also pleased to announce our new capital allocation framework, which includes the initiation of a regular quarterly dividend of $0.25 per share and the renewal of our share repurchase program. These strategic announcements reflect our commitment to returning capital to shareholders while maintaining the flexibility to deploy capital to fund growth opportunities and support our existing operations.” Third Quarter 2023 Results In the third quarter of 2023, Civeo generated revenues of $183.6 million and reported net income of $9.0 million, or $0.61 per diluted share. During the third quarter of 2023, Civeo produced operating cash flow of $36.8 million, Adjusted EBITDA of $32.9 million and free cash flow of $31.7 million. By comparison, in the third quarter of 2022, Civeo generated revenues of $184.2 million and reported net income of $5.2 million, or $0.32 per diluted share. During the third quarter of 2022, Civeo produced operating cash flow of $38.7 million, Adjusted EBITDA of $35.0 million and free cash flow of $38.6 million. The year-over-year decrease in Adjusted EBITDA in the third quarter of 2023 was primarily driven by the wind down of LNG-related Canadian mobile camp activity. This decrease was partially offset by increased billed rooms at the Australian Bowen Basin villages and increased Australian integrated services activity. Business Segment Results (Unless otherwise noted, the following discussion compares the quarterly results for the third quarter of 2023 to the results for the third quarter of 2022.) Canada During the third quarter of 2023, the Canadian segment generated revenues of $95.1 million, operating income of $10.8 million and Adjusted EBITDA of $23.0 million, compared to revenues of $103.0 million, operating income of $7.8 million and Adjusted EBITDA of $25.6 million in the third quarter of 2022. Results for the third quarter of 2023 reflect the impact of a weakened Canadian dollar relative to the U.S. dollar, which decreased revenues and Adjusted EBITDA by $2.6 million and $0.7 million, respectively. The third quarter of 2023 Adjusted EBITDA excluded $4.9 million of other expenses related to the demobilization of McClelland Lake Lodge. On a constant currency basis, the Canadian segment experienced a 5% period-over-period decrease in revenues primarily related to Canadian mobile camp activity winding down, partially offset by an increased average daily rate on relatively flat billed rooms year-over-year. Adjusted EBITDA for the Canadian segment decreased 10% primarily due to the aforementioned dynamics. Australia During the third quarter of 2023, the Australian segment generated revenues of $87.9 million, operating income of $9.1 million and Adjusted EBITDA of $18.8 million, compared to revenues of $73.8 million, operating income of $5.9 million and Adjusted EBITDA of $16.9 million in the third quarter of 2022. Results for the third quarter of 2023 reflect the impact of a weakened Australian dollar relative to the U.S. dollar, which decreased revenues and Adjusted EBITDA by $3.8 million and $0.8 million, respectively. On a constant currency basis, the Australian segment experienced a 24% period-over-period increase in revenues primarily driven by a 19% year-over-year increase in village billed rooms as well as increased integrated services revenue related to new contracts. Adjusted EBITDA for the Australian segment increased 11% due to the aforementioned dynamics. Financial Condition and Capital Allocation As of September 30, 2023, Civeo had total liquidity of approximately $110.6 million, consisting of $102.8 million available under its revolving credit facilities and $7.8 million of cash on hand. Civeo’s total debt outstanding on September 30, 2023 was $103.2 million, a $32.9 million decrease since June 30, 2023. Civeo reported a net leverage ratio of 0.9x as of September 30, 2023. During the third quarter of 2023, Civeo invested $9.5 million in capital expenditures compared to $8.8 million invested during the third quarter of 2022. Capital expenditures in both periods were primarily related to maintenance spending on the Company’s lodges and villages. Capital expenditures in the third quarter of 2023 also included $3.6 million related to customer-funded infrastructure upgrades at three Australian villages. The Company announced today that its board of directors has declared a quarterly cash dividend of $0.25 per common share, payable on December 18, 2023 to shareholders of record as of close of business on November 27, 2023. For purposes of the Income Tax Act (Canada), the Company has designated this dividend to be an "eligible dividend". In the third quarter of 2023, Civeo repurchased approximately 62,000 shares through its share repurchase program for approximately $1.3 million. Full Year 2023 Guidance For the full year of 2023, Civeo is increasing its previously provided revenue and Adjusted EBITDA guidance ranges. The revised revenue and Adjusted EBITDA guidance ranges are $675 million to $685 million and $95 million to $100 million, respectively. The Company is maintaining its full year 2023 capital expenditure guidance of $35 million to $40 million. Conference Call Civeo will host a conference call to discuss its third quarter 2023 financial results today at 11:00 a.m. Eastern time. This call is being webcast and can be accessed at Civeo's website at www.civeo.com. Participants may also join the conference call by dialing (877) 423-9813 in the United States or (201) 689-8573 internationally and asking for the Civeo call or using the conference ID 13742013#. A replay will be available after the call by dialing (844) 512-2921 in the United States or (412) 317-6671 internationally and using the conference ID 13742013#. About Civeo Civeo Corporation is a leading provider of hospitality services with prominent market positions in the Canadian oil sands and the Australian natural resource regions. Civeo offers comprehensive solutions for lodging hundreds or thousands of workers with its long-term and temporary accommodations and provides food services, housekeeping, facility management, laundry, water and wastewater treatment, power generation, communications systems, security and logistics services. Civeo currently operates a total of 24 lodges and villages in Canada, Australia and the U.S., with an aggregate of approximately 26,000 rooms. Civeo is publicly traded under the symbol CVEO on the New York Stock Exchange. For more information, please visit Civeo's website at www.civeo.com. Forward Looking Statements This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements herein, including the statements regarding Civeo’s future plans and outlook, strategic priorities, guidance, current trends, expectations with respect to share repurchases and dividends, and liquidity needs, are based on then current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the accommodations industry, risks associated with the level of supply and demand for oil, coal, iron ore and other minerals, including the level of activity, spending and developments in the Canadian oil sands, the level of demand for coal and other natural resources from, and investments and opportunities in, Australia, and fluctuations or sharp declines in the current and future prices of oil, natural gas, coal, iron ore and other minerals, risks associated with failure by our customers to reach positive final investment decisions on, or otherwise not complete, projects with respect to which we have been awarded contracts, which may cause those customers to terminate or postpone contracts, risks associated with currency exchange rates, risks associated with inflation and volatility in the banking sector, risks associated with the company’s ability to integrate acquisitions, risks associated with labor shortages, risks associated with the development of new projects, including whether such projects will continue in the future, risks associated with the trading price of the company’s common shares, availability and cost of capital, risks associated with general global economic conditions, geopolitical events, inflation, global weather conditions, natural disasters, global health concerns, and security threats and changes to government and environmental regulations, including climate change, and other factors discussed in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Civeo’s most recent annual report on Form 10-K and other reports the company may file from time to time with the U.S. Securities and Exchange Commission. Each forward-looking statement contained herein speaks only as of the date of this release. Except as required by law, Civeo expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise. Non-GAAP Financial Information EBITDA, Adjusted EBITDA, free cash flow, net debt, bank-adjusted EBITDA and net leverage ratio are non-GAAP financial measures. See “Non-GAAP Reconciliation” below for definitions and additional information concerning non-GAAP financial measures, including a reconciliation of the non-GAAP financial information presented in this press release to the most directly comparable financial information presented in accordance with GAAP. Non-GAAP financial information supplements and should be read together with, and is not an alternative or substitute for, the Company’s financial results reported in accordance with GAAP. Because non-GAAP financial information is not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures. - Financial Schedules Follow - CIVEO CORPORATION UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenues $ 183,572 $ 184,227 $ 530,006 $ 534,859 Costs and expenses: Cost of sales and services 130,296 133,496 395,235 389,392 Selling, general and administrative expenses 20,236 17,677 52,885 50,572 Depreciation and amortization expense 16,914 22,608 59,277 65,818 Other operating expense (income) 87 (339 ) 302 (187 ) 167,533 173,442 507,699 505,595 Operating income 16,039 10,785 22,307 29,264 Interest expense (3,365 ) (3,001 ) (10,625 ) (8,077 ) Interest income 44 13 126 15 Other income (expense) (4,709 ) 2,179 (1,832 ) 4,290 Income before income taxes 8,009 9,976 9,976 25,492 Income tax benefit (expense) 1,214 (3,713 ) (2,897 ) (7,091 ) Net income 9,223 6,263 7,079 18,401 Less: Net income (loss) attributable to noncontrolling interest 201 546 (53 ) 1,706 Net income attributable to Civeo Corporation 9,022 5,717 7,132 16,695 Less: Dividends attributable to Class A preferred shares — 492 — 1,469 Net income attributable to Civeo common shareholders $ 9,022 $ 5,225 $ 7,132 $ 15,226 Net income per share attributable to Civeo Corporation common shareholders: Basic $ 0.61 $ 0.32 $ 0.48 $ 0.92 Diluted $ 0.61 $ 0.32 $ 0.47 $ 0.91 Weighted average number of common shares outstanding: Basic 14,814 13,932 14,980 14,058 Diluted 14,891 14,064 15,051 14,220 CIVEO CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) September 30, 2023 December 31, 2022 (UNAUDITED) Current assets: Cash and cash equivalents $ 7,817 $ 7,954 Accounts receivable, net 153,946 119,755 Inventories 6,272 6,907 Assets held for sale 8,185 8,653 Prepaid expenses and other current assets 14,409 10,280 Total current assets 190,629 153,549 Property, plant and equipment, net 263,436 301,890 Goodwill, net 7,290 7,672 Other intangible assets, net 77,547 81,747 Operating lease right-of-use assets 12,866 15,722 Other noncurrent assets 4,826 5,604 Total assets $ 556,594 $ 566,184 Current liabilities: Accounts payable $ 53,124 $ 51,087 Accrued liabilities 48,693 39,211 Income taxes 173 178 Current portion of long-term debt 7,143 28,448 Deferred revenue 6,884 991 Other current liabilities 9,276 8,342 Total current liabilities 125,293 128,257 Long-term debt 95,852 102,505 Deferred income taxes 7,017 4,778 Operating lease liabilities 10,355 12,771 Other noncurrent liabilities 24,114 14,172 Total liabilities 262,631 262,483 Shareholders' equity: Common shares — — Additional paid-in capital 1,627,809 1,624,512 Accumulated deficit (935,944 ) (930,123 ) Treasury stock (9,063 ) (9,063 ) Accumulated other comprehensive loss (392,080 ) (385,187 ) Total Civeo Corporation shareholders' equity 290,722 300,139 Noncontrolling interest 3,241 3,562 Total shareholders' equity 293,963 303,701 Total liabilities and shareholders' equity $ 556,594 $ 566,184 CIVEO CORPORATION UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Nine Months Ended September 30, 2023 2022 Cash flows from operating activities: Net income $ 7,079 $ 18,401 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 59,277 65,818 Deferred income tax expense 2,688 6,930 Non-cash compensation charge 3,297 2,861 Losses (gains) on disposals of assets 2,264 (4,069 ) Provision (benefit) for credit losses, net of recoveries 120 (23 ) Other, net 1,900 2,397 Changes in operating assets and liabilities: Accounts receivable (37,411 ) (19,138 ) Inventories 420 (1,557 ) Accounts payable and accrued liabilities 4,767 3,515 Taxes payable (5 ) (62 ) Other current and noncurrent assets and liabilities, net 12,197 (12,701 ) Net cash flows provided by operating activities 56,593 62,372 Cash flows from investing activities: Capital expenditures (21,179 ) (17,466 ) Proceeds from dispositions of property, plant and equipment 7,070 11,975 Other, net — 190 Net cash flows used in investing activities (14,109 ) (5,301 ) Cash flows from financing activities: Term loan repayments (22,338 ) (23,059 ) Revolving credit borrowings (repayments), net (6,732 ) (14,824 ) Dividends paid (3,731 ) — Repurchases of common shares (9,222 ) (14,209 ) Taxes paid on vested shares — (1,013 ) Net cash flows used in financing activities (42,023 ) (53,105 ) Effect of exchange rate changes on cash (598 ) (1,887 ) Net change in cash and cash equivalents (137 ) 2,079 Cash and cash equivalents, beginning of period 7,954 6,282 Cash and cash equivalents, end of period $ 7,817 $ 8,361 CIVEO CORPORATION SEGMENT DATA (in thousands) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenues Canada $ 95,144 $ 103,009 $ 280,067 $ 307,984 Australia 87,885 73,805 247,418 205,154 Other (2) 543 7,413 2,521 21,721 Total revenues $ 183,572 $ 184,227 $ 530,006 $ 534,859 EBITDA (1) Canada $ 18,154 $ 25,567 $ 49,983 $ 71,445 Australia 18,785 16,858 52,600 47,832 Corporate, other and eliminations (2) (8,896 ) (7,399 ) (22,778 ) (21,611 ) Total EBITDA $ 28,043 $ 35,026 $ 79,805 $ 97,666 Adjusted EBITDA (1) Canada $ 23,022 $ 25,567 $ 54,851 $ 71,445 Australia 18,785 16,858 52,600 47,832 Corporate, other and eliminations (2) (8,896 ) (7,399 ) (22,778 ) (21,611 ) Total adjusted EBITDA $ 32,911 $ 35,026 $ 84,673 $ 97,666 Operating income (loss) Canada $ 10,811 $ 7,846 $ 9,486 $ 23,081 Australia 9,067 5,859 23,140 17,446 Corporate, other and eliminations (2) (3,839 ) (2,920 ) (10,319 ) (11,263 ) Total operating income $ 16,039 $ 10,785 $ 22,307 $ 29,264 (1) Please see Non-GAAP Reconciliation Schedule. (2) Prior to the first quarter of 2023, we presented the U.S. operating segment as a separate reportable segment. Our operating segment in the U.S. no longer meets the reportable segment quantitative thresholds, and is included within the Other and Corporate, other and eliminations categories. Prior periods have been adjusted. CIVEO CORPORATION NON-GAAP RECONCILIATIONS (in thousands) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, Twelve Months Ended September 30, 2023 2022 2023 2022 2023 EBITDA (1) $ 28,043 $ 35,026 $ 79,805 $ 97,666 $ 89,187 Adjusted EBITDA (1) $ 32,911 $ 35,026 $ 84,673 $ 97,666 $ 99,776 Free Cash Flow (2) $ 31,721 $ 38,595 $ 42,484 $ 56,881 Net Leverage Ratio (3) 0.9x (1) The term EBITDA is a non-GAAP financial measure that is defined as net income (loss) attributable to Civeo Corporation plus interest, taxes, depreciation and amortization. The term Adjusted EBITDA is a non-GAAP financial measure that is defined as EBITDA adjusted to exclude certain other unusual or non-operating items. EBITDA and Adjusted EBITDA are not measures of financial performance under generally accepted accounting principles and should not be considered in isolation from or as a substitute for net income or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. Additionally, EBITDA and Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Civeo has included EBITDA and Adjusted EBITDA as supplemental disclosures because its management believes that EBITDA and Adjusted EBITDA provide useful information regarding its ability to service debt and to fund capital expenditures and provide investors a helpful measure for comparing Civeo's operating performance with the performance of other companies that have different financing and capital structures or tax rates. Civeo uses EBITDA and Adjusted EBITDA to compare and to monitor the performance of its business segments to other comparable public companies and as a benchmark for the award of incentive compensation under its annual incentive compensation plan. The following table sets forth a reconciliation of EBITDA and Adjusted EBITDA to net income (loss) attributable to Civeo Corporation, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles (in thousands) (unaudited): Three Months Ended September 30, Nine Months Ended September 30, Twelve Months Ended September 30, 2023 2022 2023 2022 2023 Net income (loss) attributable to Civeo Corporation $ 9,022 $ 5,717 $ 7,132 $ 16,695 $ (5,566 ) Income tax (benefit) expense (1,214 ) 3,713 2,897 7,091 208 Depreciation and amortization 16,914 22,608 59,277 65,818 80,673 Interest income (44 ) (13 ) (126 ) (15 ) (150 ) Interest expense 3,365 3,001 10,625 8,077 14,022 EBITDA $ 28,043 $ 35,026 $ 79,805 $ 97,666 $ 89,187 Adjustments to EBITDA Impairment of long-lived assets (a) — — — — 5,721 Demobilization expenses (b) 4,868 — 4,868 — 4,868 Adjusted EBITDA $ 32,911 $ 35,026 $ 84,673 $ 97,666 $ 99,776 (a) Relates to asset impairments in the fourth quarter of 2022. In the fourth quarter of 2022, we recorded a pre-tax loss related to the impairment of long-lived assets in our Australian segment of $3.8 million and a pre-tax loss related to the impairment of long-lived assets in the U.S. of $1.9 million. (b) In the third quarter of 2023, we recorded expenses associated with the demobilization of our McClelland Lake Lodge to prepare the assets for sale, which are included in Other income (expense) on the unaudited statements of operations. (2) The term Free Cash Flow is a non-GAAP financial measure that is defined as net cash flows provided by operating activities less capital expenditures plus proceeds from asset sales. Free Cash Flow is not a measure of financial performance under generally accepted accounting principles and should not be considered in isolation from or as a substitute for cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. Additionally, Free Cash Flow may not be comparable to other similarly titled measures of other companies. Civeo has included Free Cash Flow as a supplemental disclosure because its management believes that Free Cash Flow provides useful information regarding the cash flow generating ability of its business relative to its capital expenditure and debt service obligations. Civeo uses Free Cash Flow to compare and to understand, manage, make operating decisions and evaluate Civeo's business. The following table sets forth a reconciliation of Free Cash Flow to Net Cash Flows Provided by Operating Activities, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles (in thousands) (unaudited): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net Cash Flows Provided by Operating Activities $ 36,832 $ 38,741 $ 56,593 $ 62,372 Capital expenditures (9,462 ) (8,819 ) (21,179 ) (17,466 ) Proceeds from dispositions of property, plant and equipment 4,351 8,673 7,070 11,975 Free Cash Flow $ 31,721 $ 38,595 $ 42,484 $ 56,881 (3) The term net leverage ratio is a non-GAAP financial measure that is defined as net debt divided by bank-adjusted EBITDA. Net debt, bank-adjusted EBITDA and net leverage ratio are not financial measures under GAAP and should not be considered in isolation from or as a substitute for total debt, net income (loss) or cash flow measures prepared in accordance with GAAP or as a measure of profitability or liquidity. Additionally, net debt, bank-adjusted EBITDA and net leverage ratio may not be comparable to other similarly titled measures of other companies. Civeo has included net debt, bank-adjusted EBITDA and net leverage ratio as a supplemental disclosure because its management believes that this data provides useful information regarding the level of the Company’s indebtedness and its ability to service debt. Additionally, per Civeo’s credit agreement, the Company is required to maintain a net leverage ratio below 3.0x every quarter to remain in compliance with the credit agreement. The following table sets forth a reconciliation of net debt, bank-adjusted EBITDA and net leverage ratio to the most directly comparable measures of financial performance calculated under GAAP (in thousands) (unaudited): As of September 30, 2023 Total debt $ 103,248 Less: Cash and cash equivalents 7,817 Net debt $ 95,431 Adjusted EBITDA for the twelve months ended September 30, 2023 (a) $ 99,776 Adjustments to Adjusted EBITDA Stock-based compensation 4,224 Interest income 150 Bank-adjusted EBITDA $ 104,150 Net leverage ratio (b) 0.9x (a) See footnote 1 above for reconciliation of Adjusted EBITDA to net income (loss) attributable to Civeo Corporation (b) Calculated as net debt divided by bank-adjusted EBITDA CIVEO CORPORATION NON-GAAP RECONCILIATIONS - GUIDANCE (in millions) (unaudited) Year Ending December 31, 2023 EBITDA Range (1) $ 120.0 $ 125.0 Adjusted EBITDA Range (1) $ 95.0 $ 100.0 (1) The following table sets forth a reconciliation of estimated EBITDA and Adjusted EBITDA to estimated net loss, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles (in millions) (unaudited): Year Ending December 31, 2023 (estimated) Net income $ 25.0 $ 29.0 Income tax expense 6.0 7.0 Depreciation and amortization 76.0 76.0 Interest expense 13.0 13.0 EBITDA $ 120.0 $ 125.0 Adjustments to EBITDA McClelland Lake Lodge transcation impact (a) (25.0 ) (25.0 ) Adjusted EBITDA $ 95.0 $ 100.0 (a) Estimated net gains associated with the sale of our McClelland Lake Lodge, which will be included in Other income (expense) on the unaudited statement of operations. CIVEO CORPORATION SUPPLEMENTAL QUARTERLY SEGMENT AND OPERATING DATA (U.S. dollars in thousands, except for room counts and average daily rates) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Supplemental Operating Data - Canadian Segment Revenues Accommodation revenue (1) $ 71,417 $ 72,724 $ 208,000 $ 219,349 Mobile facility rental revenue (2) 17,314 25,283 54,752 73,359 Food and other services revenue (3) 6,413 5,002 17,315 15,276 Total Canadian revenues $ 95,144 $ 103,009 $ 280,067 $ 307,984 Costs Accommodation cost $ 46,063 $ 50,308 $ 150,592 $ 156,543 Mobile facility rental cost 11,636 15,597 37,736 44,939 Food and other services cost 5,867 4,447 15,701 13,782 Indirect other cost 2,406 2,526 7,693 7,829 Total Canadian cost of sales and services $ 65,972 $ 72,878 $ 211,722 $ 223,093 Average daily rates (4) $ 98 $ 99 $ 98 $ 102 Billed rooms (5) 726,364 730,708 2,093,459 2,137,530 Canadian dollar to U.S. dollar $ 0.746 $ 0.766 $ 0.743 $ 0.779 Supplemental Operating Data - Australian Segment Revenues Accommodation revenue (1) $ 46,012 $ 38,316 $ 130,953 $ 114,967 Food and other services revenue (3) 41,873 35,489 116,465 90,187 Total Australian revenues $ 87,885 $ 73,805 $ 247,418 $ 205,154 Costs Accommodation cost $ 22,404 $ 17,818 $ 63,670 $ 55,065 Food and other services cost 38,898 33,465 110,132 84,836 Indirect other cost 2,293 2,050 6,646 5,638 Total Australian cost of sales and services $ 63,595 $ 53,333 $ 180,448 $ 145,539 Average daily rates (4) $ 74 $ 73 $ 76 $ 76 Billed rooms (5) 623,436 525,359 1,734,004 1,505,143 Australian dollar to U.S. dollar $ 0.655 $ 0.683 $ 0.669 $ 0.707 (1) Includes revenues related to lodge and village rooms and hospitality services for owned rooms for the periods presented. (2) Includes revenues related to mobile assets for the periods presented. (3) Includes revenues related to food services, laundry and water and wastewater treatment services, and facilities management for the periods presented. (4) Average daily rate is based on billed rooms and accommodation revenue. (5) Billed rooms represents total billed days for owned assets for the periods presented. View source version on businesswire.com: https://www.businesswire.com/news/home/20231027959946/en/
