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 Second Quarter 2023 Results By: Civeo Corporation via Business Wire July 28, 2023 at 06:30 AM EDT Second Quarter Highlights include: Reported second quarter revenues of $178.8 million, net income of $4.5 million and operating cash flow of $19.4 million; Delivered second quarter Adjusted EBITDA of $31.6 million and free cash flow of $12.9 million; Recorded highest quarterly occupancy in Civeo’s Australian owned-villages since 2014; and Reduced debt and continued to return capital to shareholders through the share repurchase program. Civeo Corporation (NYSE:CVEO) today reported financial and operating results for the second quarter ended June 30, 2023. “In the second quarter of 2023, we delivered financial results in line with our expectations while continuing to operate safely and effectively. We generated solid free cash flow in the quarter which was used to repurchase approximately 212,000 Civeo shares and pay down $6.5 million in debt. The second quarter’s results demonstrate the value of our diversified revenue drivers and were notable for the significant year-over-year growth in our Australian segment, driven by a 33% increase in integrated services revenue related to new contracts as well as a 14% increase in Australian owned-village revenue. This quarter’s Australian village occupancy marks the highest level we’ve experienced since 2014. The improvement in Australia in the quarter was offset by lower LNG-related Canadian lodge occupancy and mobile camp activity,” said Bradley J. Dodson, Civeo's President and Chief Executive Officer. Mr. Dodson concluded, “As we highlighted on the first quarter earnings conference call, our two strategic priorities for the remainder of 2023 were mitigating inflationary pressures in our Western Australian integrated services business and evaluating commercial alternatives for our Canadian McClelland Lake lodge assets. I'm happy to report that during the second quarter we made progress on both. We will provide additional updates regarding these developments on our earnings conference call later today.” Second Quarter 2023 Results In the second quarter of 2023, Civeo generated revenues of $178.8 million and reported net income of $4.5 million, or $0.30 per diluted share. During the second quarter of 2023, Civeo produced operating cash flow of $19.4 million, Adjusted EBITDA of $31.6 million and free cash flow of $12.9 million. By comparison, in the second quarter of 2022, Civeo generated revenues of $185.0 million and reported net income of $9.1 million, or $0.54 per diluted share. During the second quarter of 2022, Civeo produced operating cash flow of $21.7 million, Adjusted EBITDA of $37.1 million and free cash flow of $17.6 million. The year-over-year decrease in Adjusted EBITDA in the second quarter of 2023 was primarily driven by lower Canadian LNG-related lodge occupancy and mobile camp activity, partially offset by increased billed rooms at the Australian Bowen Basin villages. Business Segment Results (Unless otherwise noted, the following discussion compares the quarterly results for the second quarter of 2023 to the results for the second quarter of 2022.) Canada During the second quarter of 2023, the Canadian segment generated revenues of $95.5 million, operating income of $3.2 million and Adjusted EBITDA of $19.8 million, compared to revenues of $109.0 million, operating income of $11.2 million and Adjusted EBITDA of $28.7 million in the second quarter of 2022. Results from the second quarter of 2023 reflect the impact of a weakened Canadian dollar relative to the U.S. dollar, which decreased revenues and Adjusted EBITDA by $5.1 million and $1.1 million, respectively. On a constant currency basis, the Canadian segment experienced an 8% period-over-period decrease in revenues largely related to Canadian mobile camp activity winding down as well as a 6% year-over-year decrease in Canadian lodge billed rooms. Adjusted EBITDA for the Canadian segment decreased 27% due to the aforementioned dynamics as well as inflationary pressures across the business. Australia During the second quarter of 2023, the Australian segment generated revenues of $82.5 million, operating income of $9.2 million and Adjusted EBITDA of $19.6 million, compared to revenues of $67.8 million, operating income of $5.5 million and Adjusted EBITDA of $15.5 million in the second quarter of 2022. Results from the second quarter of 2023 reflect the impact of a weakened Australian dollar relative to the U.S. dollar, which decreased revenues and Adjusted EBITDA by $5.7 million and $1.3 million, respectively. On a constant currency basis, the Australian segment experienced a 30% period-over-period increase in revenues primarily driven by increased integrated services revenue related to new contracts as well as a 16% year-over-year increase in village billed rooms. Adjusted EBITDA for the Australian segment increased 35% due the aforementioned dynamics, partially offset by a weakened Australian dollar relative to the U.S. dollar. Financial Condition As of June 30, 2023, Civeo had total liquidity of approximately $89.0 million, consisting of $77.6 million available under its revolving credit facilities and $11.4 million of cash on hand. Civeo’s total debt outstanding on June 30, 2023 was $136.1 million, a $6.5 million decrease since March 31, 2023. Civeo reported a net leverage ratio of 1.2x as of June 30, 2023. During the second quarter of 2023, Civeo invested $6.9 million in capital expenditures compared to $5.1 million invested during the second quarter of 2022. Capital expenditures in both periods were predominantly related to maintenance spending on the Company’s lodges and villages. In the second quarter of 2023, Civeo repurchased approximately 212,000 shares through its share repurchase program for a total of approximately $4.2 million. Full Year 2023 Guidance For the full year of 2023, Civeo is increasing the lower end of its previously provided revenue and Adjusted EBITDA guidance ranges. The revised revenue and Adjusted EBITDA guidance ranges are $640 million to $650 million and $90 million to $95 million, respectively. The Company is decreasing full year 2023 capital expenditure guidance to a range of $35 million to $40 million. The $10 million decrease in capital expenditure guidance is entirely driven by downward revisions to the scope of the customer-funded infrastructure upgrades to three Australian villages announced last quarter. As these upgrades will be fully funded by the customer upfront, this change will not impact our 2023 free cash flow guidance. Conference Call Civeo will host a conference call to discuss its second 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 using the conference ID 13740254#. 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 13740254#. 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 26 lodges and villages in Canada, Australia and the U.S., with an aggregate of approximately 28,000 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 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, 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 Six Months Ended June 30, June 30, 2023 2022 2023 2022 Revenues $ 178,843 $ 184,954 $ 346,434 $ 350,632 Costs and expenses: Cost of sales and services 131,425 130,053 264,939 255,896 Selling, general and administrative expenses 16,459 17,682 32,649 32,895 Depreciation and amortization expense 20,701 23,083 42,363 43,210 Other operating expense (income) 86 (106 ) 215 152 168,671 170,712 340,166 332,153 Operating income 10,172 14,242 6,268 18,479 Interest expense (3,604 ) (2,608 ) (7,260 ) (5,076 ) Interest income 50 2 82 2 Other income 427 415 2,877 2,111 Income before income taxes 7,045 12,051 1,967 15,516 Income tax expense (2,878 ) (1,821 ) (4,111 ) (3,378 ) Net income (loss) 4,167 10,230 (2,144 ) 12,138 Less: Net income (loss) attributable to noncontrolling interest (296 ) 662 (254 ) 1,160 Net income (loss) attributable to Civeo Corporation 4,463 9,568 (1,890 ) 10,978 Less: Dividends attributable to Class A preferred shares — 490 — 977 Net income (loss) attributable to Civeo common shareholders $ 4,463 $ 9,078 $ (1,890 ) $ 10,001 Net income (loss) per share attributable to Civeo Corporation common shareholders: Basic $ 0.30 $ 0.55 $ (0.13 ) $ 0.60 Diluted $ 0.30 $ 0.54 $ (0.13 ) $ 0.60 Weighted average number of common shares outstanding: Basic 14,970 14,148 15,064 14,122 Diluted 15,000 14,275 15,064 14,271 CIVEO CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) June 30, 2023 December 31, 2022 (UNAUDITED) Current assets: Cash and cash equivalents $ 11,421 $ 7,954 Accounts receivable, net 140,090 119,755 Inventories 7,171 6,907 Assets held for sale 8,204 8,653 Prepaid expenses and other current assets 8,992 10,280 Total current assets 175,878 153,549 Property, plant and equipment, net 275,561 301,890 Goodwill, net 7,522 7,672 Other intangible assets, net 80,635 81,747 Operating lease right-of-use assets 14,023 15,722 Other noncurrent assets 5,343 5,604 Total assets $ 558,962 $ 566,184 Current liabilities: Accounts payable $ 47,763 $ 51,087 Accrued liabilities 27,524 39,211 Income taxes 100 178 Current portion of long-term debt 14,664 28,448 Deferred revenue 3,097 991 Other current liabilities 9,534 8,342 Total current liabilities 102,682 128,257 Long-term debt 120,999 102,505 Deferred income taxes 8,628 4,778 Operating lease liabilities 11,446 12,771 Other noncurrent liabilities 19,874 14,172 Total liabilities 263,629 262,483 Shareholders' equity: Common shares — — Additional paid-in capital 1,626,556 1,624,512 Accumulated deficit (939,983 ) (930,123 ) Treasury stock (9,063 ) (9,063 ) Accumulated other comprehensive loss (385,350 ) (385,187 ) Total Civeo Corporation shareholders' equity 292,160 300,139 Noncontrolling interest 3,173 3,562 Total shareholders' equity 295,333 303,701 Total liabilities and shareholders' equity $ 558,962 $ 566,184 CIVEO CORPORATION UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Six Months Ended June 30, 2023 2022 Cash flows from operating activities: Net income (loss) $ (2,144 ) $ 12,138 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 42,363 43,210 Deferred income tax expense 3,985 3,256 Non-cash compensation charge 2,044 1,974 Gains on disposals of assets (2,445 ) (1,895 ) Provision for credit losses, net of recoveries (65 ) (24 ) Other, net 1,242 1,544 Changes in operating assets and liabilities: Accounts receivable (19,669 ) (23,119 ) Inventories (297 ) (1,180 ) Accounts payable and accrued liabilities (14,713 ) (6,713 ) Taxes payable (78 ) (99 ) Other current and noncurrent assets and liabilities, net 9,538 (5,461 ) Net cash flows provided by operating activities 19,761 23,631 Cash flows from investing activities: Capital expenditures (11,717 ) (8,647 ) Proceeds from dispositions of property, plant and equipment 2,719 3,302 Other, net — 190 Net cash flows used in investing activities (8,998 ) (5,155 ) Cash flows from financing activities: Term loan repayments (14,942 ) (15,763 ) Revolving credit borrowings (repayments), net 15,993 (2,576 ) Repurchases of common shares (7,970 ) (542 ) Taxes paid on vested shares — (1,013 ) Net cash flows used in financing activities (6,919 ) (19,894 ) Effect of exchange rate changes on cash (377 ) (82 ) Net change in cash and cash equivalents 3,467 (1,500 ) Cash and cash equivalents, beginning of period 7,954 6,282 Cash and cash equivalents, end of period $ 11,421 $ 4,782 CIVEO CORPORATION SEGMENT DATA (in thousands) (unaudited) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Revenues Canada $ 95,470 $ 109,023 $ 184,923 $ 204,975 Australia 82,544 67,820 159,533 131,349 Other (2) 829 8,111 1,978 14,308 Total revenues $ 178,843 $ 184,954 $ 346,434 $ 350,632 EBITDA (1) Canada $ 19,818 $ 28,659 $ 31,829 $ 45,878 Australia 19,606 15,537 33,815 30,974 Corporate, other and eliminations (2) (7,828 ) (7,118 ) (13,882 ) (14,212 ) Total EBITDA $ 31,596 $ 37,078 $ 51,762 $ 62,640 Adjusted EBITDA (1) Canada $ 19,818 $ 28,659 $ 31,829 $ 45,878 Australia 19,606 15,537 33,815 30,974 Corporate, other and eliminations (2) (7,828 ) (7,118 ) (13,882 ) (14,212 ) Total adjusted EBITDA $ 31,596 $ 37,078 $ 51,762 $ 62,640 Operating income (loss) Canada $ 3,177 $ 11,197 $ (1,325 ) $ 15,235 Australia 9,176 5,452 14,073 11,587 Corporate, other and eliminations (2) (2,181 ) (2,407 ) (6,480 ) (8,343 ) Total operating income $ 10,172 $ 14,242 $ 6,268 $ 18,479 (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 Six Months Ended Twelve Months Ended June 30, June 30, June 30, 2023 2022 2023 2022 2023 EBITDA (1) $ 31,596 $ 37,078 $ 51,762 $ 62,640 Adjusted EBITDA (1) $ 31,596 $ 37,078 $ 51,762 $ 62,640 Free Cash Flow (2) $ 12,912 $ 17,561 $ 10,763 $ 18,286 Net Leverage Ratio (3) 1.2x (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 Six Months Ended Twelve Months Ended June 30, June 30, June 30, 2023 2022 2023 2022 2023 Net income (loss) attributable to Civeo Corporation $ 4,463 $ 9,568 $ (1,890 ) $ 10,978 $ (8,871 ) Income tax expense 2,878 1,821 4,111 3,378 5,135 Depreciation and amortization 20,701 23,083 42,363 43,210 86,367 Interest income (50 ) (2 ) (82 ) (2 ) (119 ) Interest expense 3,604 2,608 7,260 5,076 13,658 EBITDA $ 31,596 $ 37,078 $ 51,762 $ 62,640 $ 96,170 Adjustments to EBITDA Impairment of long-lived assets (a) — — — — 5,721 Adjusted EBITDA $ 31,596 $ 37,078 $ 51,762 $ 62,640 $ 101,891 (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. (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 Six Months Ended June 30, June 30, 2023 2022 2023 2022 Net Cash Flows Provided by Operating Activities $ 19,403 $ 21,678 $ 19,761 $ 23,631 Capital expenditures (6,945 ) (5,055 ) (11,717 ) (8,647 ) Proceeds from dispositions of property, plant and equipment 454 938 2,719 3,302 Free Cash Flow $ 12,912 $ 17,561 $ 10,763 $ 18,286 (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 June 30, 2023 Total debt $ 136,105 Less: Cash and cash equivalents 11,421 Net debt $ 124,684 Adjusted EBITDA for the twelve months ended June 30, 2023 (a) $ 101,891 Adjustments to Adjusted EBITDA Stock-based compensation 3,857 Interest income 119 Bank-adjusted EBITDA $ 105,867 Net leverage ratio (b) 1.2x (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) $ 90.0 $ 95.0 (1) The following table sets forth a reconciliation of estimated 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 $ (13.0 ) $ (10.0 ) Income tax expense 11.0 13.0 Depreciation and amortization 79.0 79.0 Interest expense 13.0 13.0 EBITDA $ 90.0 $ 95.0 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 Six Months Ended June 30, June 30, 2023 2022 2023 2022 Supplemental Operating Data - Canadian Segment Revenues Accommodation revenue (1) $ 72,355 $ 79,431 $ 136,583 $ 146,625 Mobile facility rental revenue (2) 17,407 24,058 37,438 48,076 Food and other services revenue (3) 5,708 5,534 10,902 10,274 Total Canadian revenues $ 95,470 $ 109,023 $ 184,923 $ 204,975 Costs Accommodation cost $ 52,431 $ 53,108 $ 104,529 $ 106,235 Mobile facility rental cost 11,598 14,458 26,100 29,342 Food and other services cost 5,060 4,976 9,834 9,335 Indirect other cost 2,756 2,467 5,287 5,303 Total Canadian cost of sales and services $ 71,845 $ 75,009 $ 145,750 $ 150,215 Average daily rates (4) $ 100 $ 103 $ 98 $ 104 Billed rooms (5) 724,299 771,267 1,367,095 1,406,822 Canadian dollar to U.S. dollar $ 0.745 $ 0.784 $ 0.742 $ 0.787 Supplemental Operating Data - Australian Segment Revenues Accommodation revenue (1) $ 44,342 $ 39,052 $ 84,941 $ 76,651 Food and other services revenue (3) 38,202 28,768 74,592 54,698 Total Australian revenues $ 82,544 $ 67,820 $ 159,533 $ 131,349 Costs Accommodation cost $ 20,948 $ 18,840 $ 41,266 $ 37,247 Food and other services cost 35,372 27,008 71,234 51,371 Indirect other cost 2,225 1,844 4,353 3,588 Total Australian cost of sales and services $ 58,545 $ 47,692 $ 116,853 $ 92,206 Average daily rates (4) $ 75 $ 77 $ 76 $ 78 Billed rooms (5) 587,855 505,310 1,110,568 979,784 Australian dollar to U.S. dollar $ 0.668 $ 0.715 $ 0.676 $ 0.719 (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/20230728280636/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 Second Quarter 2023 Results By: Civeo Corporation via Business Wire July 28, 2023 at 06:30 AM EDT Second Quarter Highlights include: Reported second quarter revenues of $178.8 million, net income of $4.5 million and operating cash flow of $19.4 million; Delivered second quarter Adjusted EBITDA of $31.6 million and free cash flow of $12.9 million; Recorded highest quarterly occupancy in Civeo’s Australian owned-villages since 2014; and Reduced debt and continued to return capital to shareholders through the share repurchase program. Civeo Corporation (NYSE:CVEO) today reported financial and operating results for the second quarter ended June 30, 2023. “In the second quarter of 2023, we delivered financial results in line with our expectations while continuing to operate safely and effectively. We generated solid free cash flow in the quarter which was used to repurchase approximately 212,000 Civeo shares and pay down $6.5 million in debt. The second quarter’s results demonstrate the value of our diversified revenue drivers and were notable for the significant year-over-year growth in our Australian segment, driven by a 33% increase in integrated services revenue related to new contracts as well as a 14% increase in Australian owned-village revenue. This quarter’s Australian village occupancy marks the highest level we’ve experienced since 2014. The improvement in Australia in the quarter was offset by lower LNG-related Canadian lodge occupancy and mobile camp activity,” said Bradley J. Dodson, Civeo's President and Chief Executive Officer. Mr. Dodson concluded, “As we highlighted on the first quarter earnings conference call, our two strategic priorities for the remainder of 2023 were mitigating inflationary pressures in our Western Australian integrated services business and evaluating commercial alternatives for our Canadian McClelland Lake lodge assets. I'm happy to report that during the second quarter we made progress on both. We will provide additional updates regarding these developments on our earnings conference call later today.” Second Quarter 2023 Results In the second quarter of 2023, Civeo generated revenues of $178.8 million and reported net income of $4.5 million, or $0.30 per diluted share. During the second quarter of 2023, Civeo produced operating cash flow of $19.4 million, Adjusted EBITDA of $31.6 million and free cash flow of $12.9 million. By comparison, in the second quarter of 2022, Civeo generated revenues of $185.0 million and reported net income of $9.1 million, or $0.54 per diluted share. During the second quarter of 2022, Civeo produced operating cash flow of $21.7 million, Adjusted EBITDA of $37.1 million and free cash flow of $17.6 million. The year-over-year decrease in Adjusted EBITDA in the second quarter of 2023 was primarily driven by lower Canadian LNG-related lodge occupancy and mobile camp activity, partially offset by increased billed rooms at the Australian Bowen Basin villages. Business Segment Results (Unless otherwise noted, the following discussion compares the quarterly results for the second quarter of 2023 to the results for the second quarter of 2022.) Canada During the second quarter of 2023, the Canadian segment generated revenues of $95.5 million, operating income of $3.2 million and Adjusted EBITDA of $19.8 million, compared to revenues of $109.0 million, operating income of $11.2 million and Adjusted EBITDA of $28.7 million in the second quarter of 2022. Results from the second quarter of 2023 reflect the impact of a weakened Canadian dollar relative to the U.S. dollar, which decreased revenues and Adjusted EBITDA by $5.1 million and $1.1 million, respectively. On a constant currency basis, the Canadian segment experienced an 8% period-over-period decrease in revenues largely related to Canadian mobile camp activity winding down as well as a 6% year-over-year decrease in Canadian lodge billed rooms. Adjusted EBITDA for the Canadian segment decreased 27% due to the aforementioned dynamics as well as inflationary pressures across the business. Australia During the second quarter of 2023, the Australian segment generated revenues of $82.5 million, operating income of $9.2 million and Adjusted EBITDA of $19.6 million, compared to revenues of $67.8 million, operating income of $5.5 million and Adjusted EBITDA of $15.5 million in the second quarter of 2022. Results from the second quarter of 2023 reflect the impact of a weakened Australian dollar relative to the U.S. dollar, which decreased revenues and Adjusted EBITDA by $5.7 million and $1.3 million, respectively. On a constant currency basis, the Australian segment experienced a 30% period-over-period increase in revenues primarily driven by increased integrated services revenue related to new contracts as well as a 16% year-over-year increase in village billed rooms. Adjusted EBITDA for the Australian segment increased 35% due the aforementioned dynamics, partially offset by a weakened Australian dollar relative to the U.S. dollar. Financial Condition As of June 30, 2023, Civeo had total liquidity of approximately $89.0 million, consisting of $77.6 million available under its revolving credit facilities and $11.4 million of cash on hand. Civeo’s total debt outstanding on June 30, 2023 was $136.1 million, a $6.5 million decrease since March 31, 2023. Civeo reported a net leverage ratio of 1.2x as of June 30, 2023. During the second quarter of 2023, Civeo invested $6.9 million in capital expenditures compared to $5.1 million invested during the second quarter of 2022. Capital expenditures in both periods were predominantly related to maintenance spending on the Company’s lodges and villages. In the second quarter of 2023, Civeo repurchased approximately 212,000 shares through its share repurchase program for a total of approximately $4.2 million. Full Year 2023 Guidance For the full year of 2023, Civeo is increasing the lower end of its previously provided revenue and Adjusted EBITDA guidance ranges. The revised revenue and Adjusted EBITDA guidance ranges are $640 million to $650 million and $90 million to $95 million, respectively. The Company is decreasing full year 2023 capital expenditure guidance to a range of $35 million to $40 million. The $10 million decrease in capital expenditure guidance is entirely driven by downward revisions to the scope of the customer-funded infrastructure upgrades to three Australian villages announced last quarter. As these upgrades will be fully funded by the customer upfront, this change will not impact our 2023 free cash flow guidance. Conference Call Civeo will host a conference call to discuss its second 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 using the conference ID 13740254#. 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 13740254#. 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 26 lodges and villages in Canada, Australia and the U.S., with an aggregate of approximately 28,000 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 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, 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 Six Months Ended June 30, June 30, 2023 2022 2023 2022 Revenues $ 178,843 $ 184,954 $ 346,434 $ 350,632 Costs and expenses: Cost of sales and services 131,425 130,053 264,939 255,896 Selling, general and administrative expenses 16,459 17,682 32,649 32,895 Depreciation and amortization expense 20,701 23,083 42,363 43,210 Other operating expense (income) 86 (106 ) 215 152 168,671 170,712 340,166 332,153 Operating income 10,172 14,242 6,268 18,479 Interest expense (3,604 ) (2,608 ) (7,260 ) (5,076 ) Interest income 50 2 82 2 Other income 427 415 2,877 2,111 Income before income taxes 7,045 12,051 1,967 15,516 Income tax expense (2,878 ) (1,821 ) (4,111 ) (3,378 ) Net income (loss) 4,167 10,230 (2,144 ) 12,138 Less: Net income (loss) attributable to noncontrolling interest (296 ) 662 (254 ) 1,160 Net income (loss) attributable to Civeo Corporation 4,463 9,568 (1,890 ) 10,978 Less: Dividends attributable to Class A preferred shares — 490 — 977 Net income (loss) attributable to Civeo common shareholders $ 4,463 $ 9,078 $ (1,890 ) $ 10,001 Net income (loss) per share attributable to Civeo Corporation common shareholders: Basic $ 0.30 $ 0.55 $ (0.13 ) $ 0.60 Diluted $ 0.30 $ 0.54 $ (0.13 ) $ 0.60 Weighted average number of common shares outstanding: Basic 14,970 14,148 15,064 14,122 Diluted 15,000 14,275 15,064 14,271 CIVEO CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) June 30, 2023 December 31, 2022 (UNAUDITED) Current assets: Cash and cash equivalents $ 11,421 $ 7,954 Accounts receivable, net 140,090 119,755 Inventories 7,171 6,907 Assets held for sale 8,204 8,653 Prepaid expenses and other current assets 8,992 10,280 Total current assets 175,878 153,549 Property, plant and equipment, net 275,561 301,890 Goodwill, net 7,522 7,672 Other intangible assets, net 80,635 81,747 Operating lease right-of-use assets 14,023 15,722 Other noncurrent assets 5,343 5,604 Total assets $ 558,962 $ 566,184 Current liabilities: Accounts payable $ 47,763 $ 51,087 Accrued liabilities 27,524 39,211 Income taxes 100 178 Current portion of long-term debt 14,664 28,448 Deferred revenue 3,097 991 Other current liabilities 9,534 8,342 Total current liabilities 102,682 128,257 Long-term debt 120,999 102,505 Deferred income taxes 8,628 4,778 Operating lease liabilities 11,446 12,771 Other noncurrent liabilities 19,874 14,172 Total liabilities 263,629 262,483 Shareholders' equity: Common shares — — Additional paid-in capital 1,626,556 1,624,512 Accumulated deficit (939,983 ) (930,123 ) Treasury stock (9,063 ) (9,063 ) Accumulated other comprehensive loss (385,350 ) (385,187 ) Total Civeo Corporation shareholders' equity 292,160 300,139 Noncontrolling interest 3,173 3,562 Total shareholders' equity 295,333 303,701 Total liabilities and shareholders' equity $ 558,962 $ 566,184 CIVEO CORPORATION UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Six Months Ended June 30, 2023 2022 Cash flows from operating activities: Net income (loss) $ (2,144 ) $ 12,138 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 42,363 43,210 Deferred income tax expense 3,985 3,256 Non-cash compensation charge 2,044 1,974 Gains on disposals of assets (2,445 ) (1,895 ) Provision for credit losses, net of recoveries (65 ) (24 ) Other, net 1,242 1,544 Changes in operating assets and liabilities: Accounts receivable (19,669 ) (23,119 ) Inventories (297 ) (1,180 ) Accounts payable and accrued liabilities (14,713 ) (6,713 ) Taxes payable (78 ) (99 ) Other current and noncurrent assets and liabilities, net 9,538 (5,461 ) Net cash flows provided by operating activities 19,761 23,631 Cash flows from investing activities: Capital expenditures (11,717 ) (8,647 ) Proceeds from dispositions of property, plant and equipment 2,719 3,302 Other, net — 190 Net cash flows used in investing activities (8,998 ) (5,155 ) Cash flows from financing activities: Term loan repayments (14,942 ) (15,763 ) Revolving credit borrowings (repayments), net 15,993 (2,576 ) Repurchases of common shares (7,970 ) (542 ) Taxes paid on vested shares — (1,013 ) Net cash flows used in financing activities (6,919 ) (19,894 ) Effect of exchange rate changes on cash (377 ) (82 ) Net change in cash and cash equivalents 3,467 (1,500 ) Cash and cash equivalents, beginning of period 7,954 6,282 Cash and cash equivalents, end of period $ 11,421 $ 4,782 CIVEO CORPORATION SEGMENT DATA (in thousands) (unaudited) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Revenues Canada $ 95,470 $ 109,023 $ 184,923 $ 204,975 Australia 82,544 67,820 159,533 131,349 Other (2) 829 8,111 1,978 14,308 Total revenues $ 178,843 $ 184,954 $ 346,434 $ 350,632 EBITDA (1) Canada $ 19,818 $ 28,659 $ 31,829 $ 45,878 Australia 19,606 15,537 33,815 30,974 Corporate, other and eliminations (2) (7,828 ) (7,118 ) (13,882 ) (14,212 ) Total EBITDA $ 31,596 $ 37,078 $ 51,762 $ 62,640 Adjusted EBITDA (1) Canada $ 19,818 $ 28,659 $ 31,829 $ 45,878 Australia 19,606 15,537 33,815 30,974 Corporate, other and eliminations (2) (7,828 ) (7,118 ) (13,882 ) (14,212 ) Total adjusted EBITDA $ 31,596 $ 37,078 $ 51,762 $ 62,640 Operating income (loss) Canada $ 3,177 $ 11,197 $ (1,325 ) $ 15,235 Australia 9,176 5,452 14,073 11,587 Corporate, other and eliminations (2) (2,181 ) (2,407 ) (6,480 ) (8,343 ) Total operating income $ 10,172 $ 14,242 $ 6,268 $ 18,479 (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 Six Months Ended Twelve Months Ended June 30, June 30, June 30, 2023 2022 2023 2022 2023 EBITDA (1) $ 31,596 $ 37,078 $ 51,762 $ 62,640 Adjusted EBITDA (1) $ 31,596 $ 37,078 $ 51,762 $ 62,640 Free Cash Flow (2) $ 12,912 $ 17,561 $ 10,763 $ 18,286 Net Leverage Ratio (3) 1.2x (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 Six Months Ended Twelve Months Ended June 30, June 30, June 30, 2023 2022 2023 2022 2023 Net income (loss) attributable to Civeo Corporation $ 4,463 $ 9,568 $ (1,890 ) $ 10,978 $ (8,871 ) Income tax expense 2,878 1,821 4,111 3,378 5,135 Depreciation and amortization 20,701 23,083 42,363 43,210 86,367 Interest income (50 ) (2 ) (82 ) (2 ) (119 ) Interest expense 3,604 2,608 7,260 5,076 13,658 EBITDA $ 31,596 $ 37,078 $ 51,762 $ 62,640 $ 96,170 Adjustments to EBITDA Impairment of long-lived assets (a) — — — — 5,721 Adjusted EBITDA $ 31,596 $ 37,078 $ 51,762 $ 62,640 $ 101,891 (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. (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 Six Months Ended June 30, June 30, 2023 2022 2023 2022 Net Cash Flows Provided by Operating Activities $ 19,403 $ 21,678 $ 19,761 $ 23,631 Capital expenditures (6,945 ) (5,055 ) (11,717 ) (8,647 ) Proceeds from dispositions of property, plant and equipment 454 938 2,719 3,302 Free Cash Flow $ 12,912 $ 17,561 $ 10,763 $ 18,286 (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 June 30, 2023 Total debt $ 136,105 Less: Cash and cash equivalents 11,421 Net debt $ 124,684 Adjusted EBITDA for the twelve months ended June 30, 2023 (a) $ 101,891 Adjustments to Adjusted EBITDA Stock-based compensation 3,857 Interest income 119 Bank-adjusted EBITDA $ 105,867 Net leverage ratio (b) 1.2x (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) $ 90.0 $ 95.0 (1) The following table sets forth a reconciliation of estimated 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 $ (13.0 ) $ (10.0 ) Income tax expense 11.0 13.0 Depreciation and amortization 79.0 79.0 Interest expense 13.0 13.0 EBITDA $ 90.0 $ 95.0 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 Six Months Ended June 30, June 30, 2023 2022 2023 2022 Supplemental Operating Data - Canadian Segment Revenues Accommodation revenue (1) $ 72,355 $ 79,431 $ 136,583 $ 146,625 Mobile facility rental revenue (2) 17,407 24,058 37,438 48,076 Food and other services revenue (3) 5,708 5,534 10,902 10,274 Total Canadian revenues $ 95,470 $ 109,023 $ 184,923 $ 204,975 Costs Accommodation cost $ 52,431 $ 53,108 $ 104,529 $ 106,235 Mobile facility rental cost 11,598 14,458 26,100 29,342 Food and other services cost 5,060 4,976 9,834 9,335 Indirect other cost 2,756 2,467 5,287 5,303 Total Canadian cost of sales and services $ 71,845 $ 75,009 $ 145,750 $ 150,215 Average daily rates (4) $ 100 $ 103 $ 98 $ 104 Billed rooms (5) 724,299 771,267 1,367,095 1,406,822 Canadian dollar to U.S. dollar $ 0.745 $ 0.784 $ 0.742 $ 0.787 Supplemental Operating Data - Australian Segment Revenues Accommodation revenue (1) $ 44,342 $ 39,052 $ 84,941 $ 76,651 Food and other services revenue (3) 38,202 28,768 74,592 54,698 Total Australian revenues $ 82,544 $ 67,820 $ 159,533 $ 131,349 Costs Accommodation cost $ 20,948 $ 18,840 $ 41,266 $ 37,247 Food and other services cost 35,372 27,008 71,234 51,371 Indirect other cost 2,225 1,844 4,353 3,588 Total Australian cost of sales and services $ 58,545 $ 47,692 $ 116,853 $ 92,206 Average daily rates (4) $ 75 $ 77 $ 76 $ 78 Billed rooms (5) 587,855 505,310 1,110,568 979,784 Australian dollar to U.S. dollar $ 0.668 $ 0.715 $ 0.676 $ 0.719 (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/20230728280636/en/Contacts Carolyn J. Stone Civeo Corporation Senior Vice President & Chief Financial Officer 713-510-2400
Second Quarter Highlights include: Reported second quarter revenues of $178.8 million, net income of $4.5 million and operating cash flow of $19.4 million; Delivered second quarter Adjusted EBITDA of $31.6 million and free cash flow of $12.9 million; Recorded highest quarterly occupancy in Civeo’s Australian owned-villages since 2014; and Reduced debt and continued to return capital to shareholders through the share repurchase program.
Civeo Corporation (NYSE:CVEO) today reported financial and operating results for the second quarter ended June 30, 2023. “In the second quarter of 2023, we delivered financial results in line with our expectations while continuing to operate safely and effectively. We generated solid free cash flow in the quarter which was used to repurchase approximately 212,000 Civeo shares and pay down $6.5 million in debt. The second quarter’s results demonstrate the value of our diversified revenue drivers and were notable for the significant year-over-year growth in our Australian segment, driven by a 33% increase in integrated services revenue related to new contracts as well as a 14% increase in Australian owned-village revenue. This quarter’s Australian village occupancy marks the highest level we’ve experienced since 2014. The improvement in Australia in the quarter was offset by lower LNG-related Canadian lodge occupancy and mobile camp activity,” said Bradley J. Dodson, Civeo's President and Chief Executive Officer. Mr. Dodson concluded, “As we highlighted on the first quarter earnings conference call, our two strategic priorities for the remainder of 2023 were mitigating inflationary pressures in our Western Australian integrated services business and evaluating commercial alternatives for our Canadian McClelland Lake lodge assets. I'm happy to report that during the second quarter we made progress on both. We will provide additional updates regarding these developments on our earnings conference call later today.” Second Quarter 2023 Results In the second quarter of 2023, Civeo generated revenues of $178.8 million and reported net income of $4.5 million, or $0.30 per diluted share. During the second quarter of 2023, Civeo produced operating cash flow of $19.4 million, Adjusted EBITDA of $31.6 million and free cash flow of $12.9 million. By comparison, in the second quarter of 2022, Civeo generated revenues of $185.0 million and reported net income of $9.1 million, or $0.54 per diluted share. During the second quarter of 2022, Civeo produced operating cash flow of $21.7 million, Adjusted EBITDA of $37.1 million and free cash flow of $17.6 million. The year-over-year decrease in Adjusted EBITDA in the second quarter of 2023 was primarily driven by lower Canadian LNG-related lodge occupancy and mobile camp activity, partially offset by increased billed rooms at the Australian Bowen Basin villages. Business Segment Results (Unless otherwise noted, the following discussion compares the quarterly results for the second quarter of 2023 to the results for the second quarter of 2022.) Canada During the second quarter of 2023, the Canadian segment generated revenues of $95.5 million, operating income of $3.2 million and Adjusted EBITDA of $19.8 million, compared to revenues of $109.0 million, operating income of $11.2 million and Adjusted EBITDA of $28.7 million in the second quarter of 2022. Results from the second quarter of 2023 reflect the impact of a weakened Canadian dollar relative to the U.S. dollar, which decreased revenues and Adjusted EBITDA by $5.1 million and $1.1 million, respectively. On a constant currency basis, the Canadian segment experienced an 8% period-over-period decrease in revenues largely related to Canadian mobile camp activity winding down as well as a 6% year-over-year decrease in Canadian lodge billed rooms. Adjusted EBITDA for the Canadian segment decreased 27% due to the aforementioned dynamics as well as inflationary pressures across the business. Australia During the second quarter of 2023, the Australian segment generated revenues of $82.5 million, operating income of $9.2 million and Adjusted EBITDA of $19.6 million, compared to revenues of $67.8 million, operating income of $5.5 million and Adjusted EBITDA of $15.5 million in the second quarter of 2022. Results from the second quarter of 2023 reflect the impact of a weakened Australian dollar relative to the U.S. dollar, which decreased revenues and Adjusted EBITDA by $5.7 million and $1.3 million, respectively. On a constant currency basis, the Australian segment experienced a 30% period-over-period increase in revenues primarily driven by increased integrated services revenue related to new contracts as well as a 16% year-over-year increase in village billed rooms. Adjusted EBITDA for the Australian segment increased 35% due the aforementioned dynamics, partially offset by a weakened Australian dollar relative to the U.S. dollar. Financial Condition As of June 30, 2023, Civeo had total liquidity of approximately $89.0 million, consisting of $77.6 million available under its revolving credit facilities and $11.4 million of cash on hand. Civeo’s total debt outstanding on June 30, 2023 was $136.1 million, a $6.5 million decrease since March 31, 2023. Civeo reported a net leverage ratio of 1.2x as of June 30, 2023. During the second quarter of 2023, Civeo invested $6.9 million in capital expenditures compared to $5.1 million invested during the second quarter of 2022. Capital expenditures in both periods were predominantly related to maintenance spending on the Company’s lodges and villages. In the second quarter of 2023, Civeo repurchased approximately 212,000 shares through its share repurchase program for a total of approximately $4.2 million. Full Year 2023 Guidance For the full year of 2023, Civeo is increasing the lower end of its previously provided revenue and Adjusted EBITDA guidance ranges. The revised revenue and Adjusted EBITDA guidance ranges are $640 million to $650 million and $90 million to $95 million, respectively. The Company is decreasing full year 2023 capital expenditure guidance to a range of $35 million to $40 million. The $10 million decrease in capital expenditure guidance is entirely driven by downward revisions to the scope of the customer-funded infrastructure upgrades to three Australian villages announced last quarter. As these upgrades will be fully funded by the customer upfront, this change will not impact our 2023 free cash flow guidance. Conference Call Civeo will host a conference call to discuss its second 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 using the conference ID 13740254#. 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 13740254#. 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 26 lodges and villages in Canada, Australia and the U.S., with an aggregate of approximately 28,000 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 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, 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 Six Months Ended June 30, June 30, 2023 2022 2023 2022 Revenues $ 178,843 $ 184,954 $ 346,434 $ 350,632 Costs and expenses: Cost of sales and services 131,425 130,053 264,939 255,896 Selling, general and administrative expenses 16,459 17,682 32,649 32,895 Depreciation and amortization expense 20,701 23,083 42,363 43,210 Other operating expense (income) 86 (106 ) 215 152 168,671 170,712 340,166 332,153 Operating income 10,172 14,242 6,268 18,479 Interest expense (3,604 ) (2,608 ) (7,260 ) (5,076 ) Interest income 50 2 82 2 Other income 427 415 2,877 2,111 Income before income taxes 7,045 12,051 1,967 15,516 Income tax expense (2,878 ) (1,821 ) (4,111 ) (3,378 ) Net income (loss) 4,167 10,230 (2,144 ) 12,138 Less: Net income (loss) attributable to noncontrolling interest (296 ) 662 (254 ) 1,160 Net income (loss) attributable to Civeo Corporation 4,463 9,568 (1,890 ) 10,978 Less: Dividends attributable to Class A preferred shares — 490 — 977 Net income (loss) attributable to Civeo common shareholders $ 4,463 $ 9,078 $ (1,890 ) $ 10,001 Net income (loss) per share attributable to Civeo Corporation common shareholders: Basic $ 0.30 $ 0.55 $ (0.13 ) $ 0.60 Diluted $ 0.30 $ 0.54 $ (0.13 ) $ 0.60 Weighted average number of common shares outstanding: Basic 14,970 14,148 15,064 14,122 Diluted 15,000 14,275 15,064 14,271 CIVEO CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) June 30, 2023 December 31, 2022 (UNAUDITED) Current assets: Cash and cash equivalents $ 11,421 $ 7,954 Accounts receivable, net 140,090 119,755 Inventories 7,171 6,907 Assets held for sale 8,204 8,653 Prepaid expenses and other current assets 8,992 10,280 Total current assets 175,878 153,549 Property, plant and equipment, net 275,561 301,890 Goodwill, net 7,522 7,672 Other intangible assets, net 80,635 81,747 Operating lease right-of-use assets 14,023 15,722 Other noncurrent assets 5,343 5,604 Total assets $ 558,962 $ 566,184 Current liabilities: Accounts payable $ 47,763 $ 51,087 Accrued liabilities 27,524 39,211 Income taxes 100 178 Current portion of long-term debt 14,664 28,448 Deferred revenue 3,097 991 Other current liabilities 9,534 8,342 Total current liabilities 102,682 128,257 Long-term debt 120,999 102,505 Deferred income taxes 8,628 4,778 Operating lease liabilities 11,446 12,771 Other noncurrent liabilities 19,874 14,172 Total liabilities 263,629 262,483 Shareholders' equity: Common shares — — Additional paid-in capital 1,626,556 1,624,512 Accumulated deficit (939,983 ) (930,123 ) Treasury stock (9,063 ) (9,063 ) Accumulated other comprehensive loss (385,350 ) (385,187 ) Total Civeo Corporation shareholders' equity 292,160 300,139 Noncontrolling interest 3,173 3,562 Total shareholders' equity 295,333 303,701 Total liabilities and shareholders' equity $ 558,962 $ 566,184 CIVEO CORPORATION UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Six Months Ended June 30, 2023 2022 Cash flows from operating activities: Net income (loss) $ (2,144 ) $ 12,138 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 42,363 43,210 Deferred income tax expense 3,985 3,256 Non-cash compensation charge 2,044 1,974 Gains on disposals of assets (2,445 ) (1,895 ) Provision for credit losses, net of recoveries (65 ) (24 ) Other, net 1,242 1,544 Changes in operating assets and liabilities: Accounts receivable (19,669 ) (23,119 ) Inventories (297 ) (1,180 ) Accounts payable and accrued liabilities (14,713 ) (6,713 ) Taxes payable (78 ) (99 ) Other current and noncurrent assets and liabilities, net 9,538 (5,461 ) Net cash flows provided by operating activities 19,761 23,631 Cash flows from investing activities: Capital expenditures (11,717 ) (8,647 ) Proceeds from dispositions of property, plant and equipment 2,719 3,302 Other, net — 190 Net cash flows used in investing activities (8,998 ) (5,155 ) Cash flows from financing activities: Term loan repayments (14,942 ) (15,763 ) Revolving credit borrowings (repayments), net 15,993 (2,576 ) Repurchases of common shares (7,970 ) (542 ) Taxes paid on vested shares — (1,013 ) Net cash flows used in financing activities (6,919 ) (19,894 ) Effect of exchange rate changes on cash (377 ) (82 ) Net change in cash and cash equivalents 3,467 (1,500 ) Cash and cash equivalents, beginning of period 7,954 6,282 Cash and cash equivalents, end of period $ 11,421 $ 4,782 CIVEO CORPORATION SEGMENT DATA (in thousands) (unaudited) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Revenues Canada $ 95,470 $ 109,023 $ 184,923 $ 204,975 Australia 82,544 67,820 159,533 131,349 Other (2) 829 8,111 1,978 14,308 Total revenues $ 178,843 $ 184,954 $ 346,434 $ 350,632 EBITDA (1) Canada $ 19,818 $ 28,659 $ 31,829 $ 45,878 Australia 19,606 15,537 33,815 30,974 Corporate, other and eliminations (2) (7,828 ) (7,118 ) (13,882 ) (14,212 ) Total EBITDA $ 31,596 $ 37,078 $ 51,762 $ 62,640 Adjusted EBITDA (1) Canada $ 19,818 $ 28,659 $ 31,829 $ 45,878 Australia 19,606 15,537 33,815 30,974 Corporate, other and eliminations (2) (7,828 ) (7,118 ) (13,882 ) (14,212 ) Total adjusted EBITDA $ 31,596 $ 37,078 $ 51,762 $ 62,640 Operating income (loss) Canada $ 3,177 $ 11,197 $ (1,325 ) $ 15,235 Australia 9,176 5,452 14,073 11,587 Corporate, other and eliminations (2) (2,181 ) (2,407 ) (6,480 ) (8,343 ) Total operating income $ 10,172 $ 14,242 $ 6,268 $ 18,479 (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 Six Months Ended Twelve Months Ended June 30, June 30, June 30, 2023 2022 2023 2022 2023 EBITDA (1) $ 31,596 $ 37,078 $ 51,762 $ 62,640 Adjusted EBITDA (1) $ 31,596 $ 37,078 $ 51,762 $ 62,640 Free Cash Flow (2) $ 12,912 $ 17,561 $ 10,763 $ 18,286 Net Leverage Ratio (3) 1.2x (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 Six Months Ended Twelve Months Ended June 30, June 30, June 30, 2023 2022 2023 2022 2023 Net income (loss) attributable to Civeo Corporation $ 4,463 $ 9,568 $ (1,890 ) $ 10,978 $ (8,871 ) Income tax expense 2,878 1,821 4,111 3,378 5,135 Depreciation and amortization 20,701 23,083 42,363 43,210 86,367 Interest income (50 ) (2 ) (82 ) (2 ) (119 ) Interest expense 3,604 2,608 7,260 5,076 13,658 EBITDA $ 31,596 $ 37,078 $ 51,762 $ 62,640 $ 96,170 Adjustments to EBITDA Impairment of long-lived assets (a) — — — — 5,721 Adjusted EBITDA $ 31,596 $ 37,078 $ 51,762 $ 62,640 $ 101,891 (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. (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 Six Months Ended June 30, June 30, 2023 2022 2023 2022 Net Cash Flows Provided by Operating Activities $ 19,403 $ 21,678 $ 19,761 $ 23,631 Capital expenditures (6,945 ) (5,055 ) (11,717 ) (8,647 ) Proceeds from dispositions of property, plant and equipment 454 938 2,719 3,302 Free Cash Flow $ 12,912 $ 17,561 $ 10,763 $ 18,286 (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 June 30, 2023 Total debt $ 136,105 Less: Cash and cash equivalents 11,421 Net debt $ 124,684 Adjusted EBITDA for the twelve months ended June 30, 2023 (a) $ 101,891 Adjustments to Adjusted EBITDA Stock-based compensation 3,857 Interest income 119 Bank-adjusted EBITDA $ 105,867 Net leverage ratio (b) 1.2x (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) $ 90.0 $ 95.0 (1) The following table sets forth a reconciliation of estimated 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 $ (13.0 ) $ (10.0 ) Income tax expense 11.0 13.0 Depreciation and amortization 79.0 79.0 Interest expense 13.0 13.0 EBITDA $ 90.0 $ 95.0 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 Six Months Ended June 30, June 30, 2023 2022 2023 2022 Supplemental Operating Data - Canadian Segment Revenues Accommodation revenue (1) $ 72,355 $ 79,431 $ 136,583 $ 146,625 Mobile facility rental revenue (2) 17,407 24,058 37,438 48,076 Food and other services revenue (3) 5,708 5,534 10,902 10,274 Total Canadian revenues $ 95,470 $ 109,023 $ 184,923 $ 204,975 Costs Accommodation cost $ 52,431 $ 53,108 $ 104,529 $ 106,235 Mobile facility rental cost 11,598 14,458 26,100 29,342 Food and other services cost 5,060 4,976 9,834 9,335 Indirect other cost 2,756 2,467 5,287 5,303 Total Canadian cost of sales and services $ 71,845 $ 75,009 $ 145,750 $ 150,215 Average daily rates (4) $ 100 $ 103 $ 98 $ 104 Billed rooms (5) 724,299 771,267 1,367,095 1,406,822 Canadian dollar to U.S. dollar $ 0.745 $ 0.784 $ 0.742 $ 0.787 Supplemental Operating Data - Australian Segment Revenues Accommodation revenue (1) $ 44,342 $ 39,052 $ 84,941 $ 76,651 Food and other services revenue (3) 38,202 28,768 74,592 54,698 Total Australian revenues $ 82,544 $ 67,820 $ 159,533 $ 131,349 Costs Accommodation cost $ 20,948 $ 18,840 $ 41,266 $ 37,247 Food and other services cost 35,372 27,008 71,234 51,371 Indirect other cost 2,225 1,844 4,353 3,588 Total Australian cost of sales and services $ 58,545 $ 47,692 $ 116,853 $ 92,206 Average daily rates (4) $ 75 $ 77 $ 76 $ 78 Billed rooms (5) 587,855 505,310 1,110,568 979,784 Australian dollar to U.S. dollar $ 0.668 $ 0.715 $ 0.676 $ 0.719 (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/20230728280636/en/