- Net income of $6.0 million, or $0.09 per diluted share,
reported for the quarter
- Consolidated revenues of $208.3 million increased 7%
sequentially, driven by higher offshore and international
activity
- Adjusted EBITDA (a non-GAAP measure(1)) of $24.0 million
increased 2% sequentially
- Offshore/Manufactured Products segment revenues increased 24%
sequentially to $137.9 million – the highest level reported since
the fourth quarter of 2015
- Offshore/Manufactured Products segment backlog totaled $333
million as of December 31, with quarterly bookings of $120
million
- Invested $3.9 million in share repurchases during the
quarter
- Extended the maturity date of our ABL Facility to February 16,
2028
Oil States International, Inc. (NYSE: OIS):
Three Months Ended
% Change
(Unaudited, In Thousands, Except Per Share
Amounts)
December 31,
2023
September 30,
2023
December 31,
2022
Sequential
Year-over- Year
Consolidated results:
Revenues
$
208,266
$
194,289
$
202,434
7
%
3
%
Operating income(2)(3)
$
7,830
$
6,190
$
3,273
26
%
139
%
Net income
$
5,963
$
4,212
$
2,885
42
%
107
%
Diluted earning per share
$
0.09
$
0.07
$
0.05
29
%
80
%
Adjusted EBITDA(1)
$
23,978
$
23,441
$
20,542
2
%
17
%
Revenues by segment:
Offshore/Manufactured Products
$
137,935
$
111,043
$
105,107
24
%
31
%
Well Site Services
51,208
59,831
67,689
(14
)%
(24
)%
Downhole Technologies
19,123
23,415
29,638
(18
)%
(35
)%
Operating income (loss) by segment:
Offshore/Manufactured Products(2)
$
25,152
$
17,804
$
12,258
41
%
105
%
Well Site Services(3)
(1,102
)
3,285
5,300
n.m.
n.m.
Downhole Technologies
(6,711
)
(4,118
)
(3,337
)
(63
)%
(101
)%
Adjusted Segment EBITDA (a non-GAAP
measure(1)):
Offshore/Manufactured Products
$
30,295
$
24,442
$
17,751
24
%
71
%
Well Site Services
5,903
9,716
12,516
(39
)%
(53
)%
Downhole Technologies
(2,877
)
(88
)
1,042
n.m.
n.m.
___________________
(1)
Adjusted EBITDA and Adjusted
Segment EBITDA are non-GAAP measures, see “Reconciliations of GAAP
to Non-GAAP Financial Information” tables below for reconciliations
to their most comparable GAAP measures as well as further
clarification and explanation.
(2)
Operating income in the fourth
and third quarters of 2023 included charges of $0.8 million and
$1.6 million, respectively, associated with the
Offshore/Manufactured Products segment’s ongoing consolidation of
certain manufacturing and service locations.
(3)
Operating loss in the fourth
quarter of 2023 also included $0.6 million, associated with the
defense of certain Well Site Services segment patents related to
proprietary technologies.
Oil States International, Inc. reported net income of $6.0
million, or $0.09 per share, and Adjusted EBITDA of $24.0 million
for the fourth quarter of 2023 on revenues of $208.3 million.
Reported fourth quarter 2023 net income included facility
consolidation charges of $0.8 million ($0.7 million after-tax, or
$0.01 per share) and patent defense costs of $0.6 million ($0.5
million after-tax, or $0.01 per share). These results compare to
revenues of $194.3 million, net income of $4.2 million, or $0.07
per share, and Adjusted EBITDA of $23.4 million reported in the
third quarter of 2023, which included facility consolidation
charges of $1.6 million ($1.3 million after-tax, or $0.02 per
share).
For the year ended December 31, 2023, the Company reported net
income of $12.9 million, or $0.20 per share, and Adjusted EBITDA of
$87.8 million on revenues of $782.3 million. The full-year 2023
results included facility consolidation charges of $2.5 million
($2.0 million after-tax, or $0.03 per share) and patent defense
costs of $0.6 million ($0.5 million after-tax, or $0.01 per share).
These results compare to a net loss of $9.5 million, or $0.15 per
share, and Adjusted EBITDA of $74.0 million on revenues of $737.7
million reported in 2022. The 2022 results included a gain of $6.1
million ($4.6 million after-tax, or $0.07 per share) recognized in
connection with the settlement of litigation.
Oil States’ President and Chief Executive Officer, Cindy B.
Taylor, stated,
“For the oil and gas industry, the year 2023 can be summarized
as a year in which North American activity started to moderate,
while international and offshore growth strengthened. Our fourth
quarter results reflect those trends with our Offshore/Manufactured
Products segment revenues growing 24% sequentially, boosted by a
39% sequential-quarter increase in project-driven revenues. This
significant growth was substantially offset by the impact of
declines in U.S. land-based completion activity due to an
approximate 20% decline in the price of crude oil during the
quarter along with continued weak natural gas prices. Despite the
reduction in U.S. activity levels during 2023, Oil States reported
positive operating and net income for a sixth consecutive
quarter.
“We concluded the year with strong year-over-year revenue and
Adjusted EBITDA growth, positive net income and free cash flow
contributions, lower net debt and enhanced cash returns to
stockholders.”
Business Segment Results
(See Segment Data and Adjusted Segment EBITDA tables below)
Offshore/Manufactured Products
Offshore/Manufactured Products reported revenues of $137.9
million – the segment’s highest revenue level since the fourth
quarter of 2015, operating income of $25.2 million and Adjusted
Segment EBITDA of $30.3 million in the fourth quarter of 2023,
compared to revenues of $111 million, operating income of $17.8
million and Adjusted Segment EBITDA of $24.4 million reported in
the third quarter of 2023. During the fourth and third quarters of
2023, the segment recorded charges of $0.8 million and $1.6
million, respectively, associated with the ongoing consolidation of
certain manufacturing and service locations. Adjusted Segment
EBITDA margin in the fourth quarter of 2023 was 22%, consistent
with the third quarter of 2023.
Backlog totaled $333 million as of December 31, 2023, a decrease
of $15 million, or 4%, from September 30, 2023 but an increase of
$25 million, or 8%, from December 31, 2022. Fourth quarter 2023
bookings totaled $120 million, yielding a quarterly book-to-bill
ratio of 0.9x and a full-year ratio of 1.1x. During the fourth
quarter of 2023, the segment received a notable production facility
project award exceeding $10 million.
Well Site Services
Well Site Services reported revenues of $51.2 million, an
operating loss of $1.1 million and Adjusted Segment EBITDA of $5.9
million in the fourth quarter of 2023, compared to revenues of
$59.8 million, operating income of $3.3 million and Adjusted
Segment EBITDA of $9.7 million reported in the third quarter of
2023. During the fourth quarter of 2023, the segment recorded $0.6
million of costs associated with the defense of certain patents
related to its proprietary technologies. Adjusted Segment EBITDA
margin was 12% in the fourth quarter of 2023 compared to 16% in the
third quarter of 2023 given year-end and holiday activity
declines.
Downhole Technologies
Downhole Technologies reported revenues of $19.1 million, an
operating loss of $6.7 million and an Adjusted Segment EBITDA loss
of $2.9 million in the fourth quarter of 2023, compared to revenues
of $23.4 million, an operating loss of $4.1 million and an Adjusted
Segment EBITDA loss of $0.1 million reported in the third quarter
of 2023. Included in the fourth quarter of 2023 results were
provisions for excess and obsolete inventory totaling $1.3
million.
Corporate
Corporate operating expenses in the fourth quarter of 2023
totaled $9.5 million.
Interest Expense, Net
Net interest expense totaled $1.8 million in the fourth quarter
of 2023, which included $0.5 million of non-cash amortization of
deferred debt issuance costs.
Income Taxes
The Company recognized tax expense of $0.2 million on pre-tax
income of $6.2 million during the fourth quarter of 2023. In the
third quarter of 2023, the Company recognized tax expense of $0.2
million on pre-tax income of $4.4 million.
Cash Flows
During the fourth quarter of 2023, the Company generated cash
flows from operations of $4.2 million and invested $7.3 million
($6.4 million net of proceeds from sales of property and equipment)
in new equipment to support future growth.
The Company also repurchased 563 thousand shares of its common
stock for $3.9 million during the fourth quarter of 2023. A total
of $18.1 million remains available under the Company’s share
repurchase authorization, which extends through February 2025.
Financial Condition
Cash on-hand decreased $5.8 million during the quarter, totaling
$47.1 million at December 31, 2023. No borrowings were outstanding
under the Company’s asset-based revolving credit facility (the “ABL
Facility”) at December 31, 2023. Liquidity (cash plus borrowing
availability) totaled $123.2 million at December 31, 2023, with
amounts available to be drawn under the ABL Facility totaling $76.1
million. On February 16, 2024, the Company amended its ABL Facility
to extend the maturity date to February 16, 2028.
Conference Call
Information
The call is scheduled for February 20, 2024 at 10:00 a.m.
Central Time, is being webcast and can be accessed from the
Company’s website at www.ir.oilstatesintl.com. Participants may
also join the conference call by dialing 1 (888) 210-3346 in the
United States or by dialing +1 (646) 960-0253 internationally and
using the passcode 7534957. A replay of the conference call will be
available approximately two hours after the completion of the call
and can be accessed from the Company’s website at
www.ir.oilstatesintl.com.
About Oil States
Oil States International, Inc. is a global provider of
manufactured products and services to customers in the energy,
industrial and military sectors. The Company’s manufactured
products include highly engineered capital equipment and consumable
products. Oil States is headquartered in Houston, Texas with
manufacturing and service facilities strategically located across
the globe. Oil States is publicly traded on the New York Stock
Exchange under the symbol “OIS”.
For more information on the Company, please visit Oil States
International’s website at www.oilstatesintl.com.
Cautionary Language Concerning Forward
Looking Statements
The foregoing contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Forward-looking
statements are those that do not state historical facts and are,
therefore, inherently subject to risks and uncertainties. The
forward-looking statements included herein are based on current
expectations and entail various risks and uncertainties that could
cause actual results to differ materially from those
forward-looking statements. Such risks and uncertainties include,
among others, the level of supply and demand for oil and natural
gas, fluctuations in the current and future prices of oil and
natural gas, the level of exploration, drilling and completion
activity, general global economic conditions, the cyclical nature
of the oil and natural gas industry, geopolitical conflicts and
tensions, the financial health of our customers, the actions of the
Organization of Petroleum Exporting Countries (“OPEC”) and other
producing nations with respect to crude oil production levels and
pricing, the impact of environmental matters, including executive
actions and regulatory efforts to adopt environmental or climate
change regulations that may result in increased operating costs or
reduced oil and natural gas production or demand globally, our
ability to access and the cost of capital in the bank and capital
markets, our ability to develop new competitive technologies and
products, and other factors discussed in the “Business” and “Risk
Factors” sections of the Company’s Annual Report on Form 10-K for
the year ended December 31, 2022 and the subsequently filed
Quarterly Reports on Form 10-Q and Periodic Reports on Form 8-K.
Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date hereof,
and, except as required by law, the Company undertakes no
obligation to update those statements or to publicly announce the
results of any revisions to any of those statements to reflect
future events or developments.
OIL STATES INTERNATIONAL, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In Thousands, Except Per Share
Amounts)
(Unaudited)
Three Months Ended
Year Ended
December 31,
2023
September 30,
2023
December 31,
2022
December 31,
2023
December 31,
2022
Revenues:
Products
$
123,444
$
102,636
$
101,027
$
418,550
$
385,564
Services
84,822
91,653
101,407
363,733
352,142
208,266
194,289
202,434
782,283
737,706
Costs and expenses:
Product costs
97,291
80,188
81,606
328,815
307,371
Service costs
66,405
70,239
76,891
278,073
271,185
Cost of revenues (exclusive of
depreciation and amortization expense presented below)
163,696
150,427
158,497
606,888
578,556
Selling, general and administrative
expense(1)
22,400
24,241
25,074
94,185
96,038
Depreciation and amortization expense
14,569
15,416
15,865
60,778
67,334
Other operating income, net(2)
(229
)
(1,985
)
(275
)
(2,732
)
(7,127
)
200,436
188,099
199,161
759,119
734,801
Operating income
7,830
6,190
3,273
23,164
2,905
Interest expense, net
(1,811
)
(1,928
)
(2,333
)
(8,189
)
(10,280
)
Other income, net
177
186
1,423
849
3,315
Income (loss) before income taxes
6,196
4,448
2,363
15,824
(4,060
)
Income tax (provision) benefit
(233
)
(236
)
522
(2,933
)
(5,480
)
Net income (loss)
$
5,963
$
4,212
$
2,885
$
12,891
$
(9,540
)
Net income (loss) per share:
Basic
$
0.09
$
0.07
$
0.05
$
0.20
$
(0.15
)
Diluted
0.09
0.07
0.05
0.20
(0.15
)
Weighted average number of common shares
outstanding:
Basic
62,483
62,651
62,678
62,690
61,638
Diluted
63,004
63,060
62,768
63,152
61,638
________________
(1)
Selling, general and
administrative expense for the three months and year ended December
31, 2023 included $0.6 million of costs associated with the defense
of certain Well Site Services segment patents related to
proprietary technologies.
(2)
Other operating income, net for
the three months ended December 31, 2023 and September 30, 2023 and
the year ended December 31, 2023 included facility consolidation
charges of $0.8 million, $1.6 million and $2.5 million,
respectively, associated with the Offshore/Manufactured Products
segment’s ongoing consolidation and relocation of certain
manufacturing and service locations. Other operating income, net
for the year ended December 31, 2022 included a gain of $6.1
million related to the Offshore/Manufactured Products segment’s
settlement of outstanding litigation against certain service
providers.
OIL STATES INTERNATIONAL, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(In Thousands)
December 31, 2023
December 31, 2022
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
47,111
$
42,018
Accounts receivable, net
203,211
218,769
Inventories, net
202,027
182,658
Prepaid expenses and other current
assets
35,648
19,317
Total current assets
487,997
462,762
Property, plant, and equipment, net
280,389
303,835
Operating lease assets, net
21,970
23,028
Goodwill, net
79,867
79,282
Other intangible assets, net
153,010
169,798
Other noncurrent assets
23,253
25,687
Total assets
$
1,046,486
$
1,064,392
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Current portion of long-term debt
$
627
$
17,831
Accounts payable
67,546
73,251
Accrued liabilities
44,227
49,057
Current operating lease liabilities
6,880
6,142
Income taxes payable
1,233
2,605
Deferred revenue
36,757
44,790
Total current liabilities
157,270
193,676
Long-term debt
135,502
135,066
Long-term operating lease liabilities
18,346
20,658
Deferred income taxes
7,717
6,652
Other noncurrent liabilities
18,106
18,782
Total liabilities
336,941
374,834
Stockholders’ equity:
Common stock
772
766
Additional paid-in capital
1,129,240
1,122,292
Retained earnings
284,918
272,027
Accumulated other comprehensive loss
(69,984
)
(78,941
)
Treasury stock
(635,401
)
(626,586
)
Total stockholders’ equity
709,545
689,558
Total liabilities and stockholders’
equity
$
1,046,486
$
1,064,392
OIL STATES INTERNATIONAL, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In Thousands)
(Unaudited)
Year Ended December
31,
2023
2022
Cash flows from operating activities:
Net income (loss)
$
12,891
$
(9,540
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization expense
60,778
67,334
Stock-based compensation expense
6,954
6,852
Amortization of deferred financing
costs
1,798
1,886
Deferred income tax provision
226
2,020
Gains on disposals of assets
(4,075
)
(2,856
)
Gains on extinguishment of 1.50%
convertible senior notes
—
(176
)
Other, net
(1,001
)
2,066
Changes in operating assets and
liabilities, net of effect from acquired business:
Accounts receivable
17,132
(35,443
)
Inventories
(19,793
)
(17,364
)
Accounts payable and accrued
liabilities
(11,743
)
18,183
Deferred revenue
(8,033
)
1,554
Other operating assets and liabilities,
net
1,441
(1,654
)
Net cash flows provided by operating
activities
56,575
32,862
Cash flows from investing activities:
Capital expenditures
(30,653
)
(20,266
)
Proceeds from disposition of property and
equipment
5,253
5,877
Acquisition of business, net of cash
acquired
—
(8,125
)
Other, net
(186
)
(211
)
Net cash flows used in investing
activities
(25,586
)
(22,725
)
Cash flows from financing activities:
Revolving credit facility borrowings
35,816
10,090
Revolving credit facility repayments
(35,816
)
(10,090
)
Repayment of 1.50% convertible senior
notes
(17,315
)
(8,450
)
Payment of promissory note to seller of
GEODynamics, Inc.
—
(10,000
)
Other debt and finance lease
repayments
(457
)
(732
)
Payment of financing costs
(128
)
(105
)
Purchases of treasury stock
(6,867
)
—
Shares added to treasury stock as a result
of net share settlements
due to vesting of stock awards
(1,948
)
(1,002
)
Net cash flows used in financing
activities
(26,715
)
(20,289
)
Effect of exchange rate changes on cash
and cash equivalents
819
(682
)
Net change in cash and cash
equivalents
5,093
(10,834
)
Cash and cash equivalents, beginning of
period
42,018
52,852
Cash and cash equivalents, end of
period
$
47,111
$
42,018
Cash paid for:
Interest
$
7,867
$
8,339
Income taxes, net
1,263
534
OIL STATES INTERNATIONAL, INC.
AND SUBSIDIARIES
SEGMENT DATA
(In Thousands)
(Unaudited)
Three Months Ended
Year Ended
December 31,
2023(2)(3)
September 30, 2023(2)
December 31,
2022
December 31,
2023(2)(3)
December 31,
2022(4)
Revenues(1):
Offshore/Manufactured Products
Project-driven:
Products
$
72,870
$
45,527
$
44,187
$
189,739
$
158,040
Services
32,875
30,391
27,254
112,742
98,968
105,745
75,918
71,441
302,481
257,008
Military and other products
10,439
7,195
9,459
32,596
32,563
Short-cycle products
21,751
27,930
24,207
106,186
92,152
Total Offshore/Manufactured Products
137,935
111,043
105,107
441,263
381,723
Well Site Services
51,208
59,831
67,689
242,633
231,189
Downhole Technologies
19,123
23,415
29,638
98,387
124,794
Total revenues
$
208,266
$
194,289
$
202,434
$
782,283
$
737,706
Operating income (loss):
Offshore/Manufactured Products
$
25,152
$
17,804
$
12,258
$
65,299
$
45,268
Well Site Services
(1,102
)
3,285
5,300
13,881
4,865
Downhole Technologies
(6,711
)
(4,118
)
(3,337
)
(14,884
)
(6,669
)
Corporate
(9,509
)
(10,781
)
(10,948
)
(41,132
)
(40,559
)
Total operating income
$
7,830
$
6,190
$
3,273
$
23,164
$
2,905
________________
(1)
The Company revised its
supplemental disclosure of disaggregated revenue information in the
second quarter of 2023. Prior-period disclosures of disaggregated
revenue information were conformed with the current-period
presentation.
(2)
Operating income for the three
months ended December 31, 2023 and September 30, 2023 and the year
ended December 31, 2023 included facility consolidation charges of
$0.8 million, $1.6 million and $2.5 million, respectively,
associated with the Offshore/Manufactured Products segment’s
ongoing consolidation and relocation of certain manufacturing and
service locations.
(3)
Operating income (loss) for the
three months and the year ended December 31, 2023 included $0.6
million of costs associated with the defense of certain Well Site
Services segment patents related to proprietary technologies.
(4)
Operating income for the year
ended December 31, 2022 included a gain of $6.1 million related to
the Offshore/Manufactured Products segment’s settlement of
outstanding litigation against certain service providers.
OIL STATES INTERNATIONAL, INC.
AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO
NON-GAAP FINANCIAL INFORMATION
ADJUSTED EBITDA (A)
(In Thousands)
(Unaudited)
Three Months Ended
Year Ended
December 31,
2023
September 30,
2023
December 31,
2022
December 31,
2023
December 31,
2022
Net income (loss)
$
5,963
$
4,212
$
2,885
$
12,891
$
(9,540
)
Interest expense, net
1,811
1,928
2,333
8,189
10,280
Income tax provision (benefit)
233
236
(522
)
2,933
5,480
Depreciation and amortization expense
14,569
15,416
15,865
60,778
67,334
Facility consolidation charges
825
1,649
—
2,474
—
Patent defense costs
577
—
—
577
—
Settlement of disputes with seller of
GEODynamics, Inc.
—
—
—
—
620
Gains on extinguishment of 1.50%
convertible senior notes
—
—
(19
)
—
(176
)
Adjusted EBITDA
$
23,978
$
23,441
$
20,542
$
87,842
$
73,998
________________
(A)
The term Adjusted EBITDA consists
of net income (loss) plus net interest expense, taxes, depreciation
and amortization expense, facility consolidation charges, patent
defense costs and loss on settlement of disputes with the seller of
GEODynamics, Inc., less gains on extinguishment of 1.50%
convertible senior notes (the “2023 Notes”). Adjusted EBITDA is not
a measure of financial performance under generally accepted
accounting principles (“GAAP”) and should not be considered in
isolation from or as a substitute for net income (loss) or cash
flow measures prepared in accordance with GAAP or as a measure of
profitability or liquidity. Additionally, Adjusted EBITDA may not
be comparable to other similarly titled measures of other
companies. The Company has included Adjusted EBITDA as a
supplemental disclosure because its management believes that
Adjusted EBITDA provides useful information regarding its ability
to service debt and to fund capital expenditures and provides
investors a helpful measure for comparing its operating performance
with the performance of other companies that have different
financing and capital structures or tax rates. The Company uses
Adjusted EBITDA to compare and to monitor the performance of the
Company and its business segments to other comparable public
companies and as a benchmark for the award of incentive
compensation under its annual incentive compensation plan. The
table above sets forth reconciliations of Adjusted EBITDA to net
income (loss), which is the most directly comparable measure of
financial performance calculated under GAAP.
OIL STATES INTERNATIONAL, INC.
AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO
NON-GAAP FINANCIAL INFORMATION
ADJUSTED SEGMENT EBITDA
(B)
(In Thousands)
(Unaudited)
Three Months Ended
Year Ended
December 31,
2023
September 30,
2023
December 31,
2022
December 31,
2023
December 31,
2022
Offshore/Manufactured Products:
Operating income
$
25,152
$
17,804
$
12,258
$
65,299
$
45,268
Other income, net
44
68
693
358
638
Depreciation and amortization expense
4,274
4,921
4,800
18,510
20,451
Facility consolidation charges
825
1,649
—
2,474
—
Adjusted Segment EBITDA
$
30,295
$
24,442
$
17,751
$
86,641
$
66,357
Well Site Services:
Operating income (loss)
$
(1,102
)
$
3,285
$
5,300
$
13,881
$
4,865
Other income, net
133
118
711
491
3,207
Depreciation and amortization expense
6,295
6,313
6,505
25,318
28,564
Patent defense costs
577
—
—
577
—
Adjusted Segment EBITDA
$
5,903
$
9,716
$
12,516
$
40,267
$
36,636
Downhole Technologies:
Operating loss
$
(6,711
)
$
(4,118
)
$
(3,337
)
$
(14,884
)
$
(6,669
)
Other expense, net
—
—
—
—
(86
)
Depreciation and amortization expense
3,834
4,030
4,379
16,314
17,628
Adjusted Segment EBITDA
$
(2,877
)
$
(88
)
$
1,042
$
1,430
$
10,873
Corporate:
Operating loss
$
(9,509
)
$
(10,781
)
$
(10,948
)
$
(41,132
)
$
(40,559
)
Other income (expense), net
—
—
19
—
(444
)
Depreciation and amortization expense
166
152
181
636
691
Settlement of disputes with seller of
GEODynamics, Inc.
—
—
—
—
620
Gains on extinguishment of 1.50%
convertible senior notes
—
—
(19
)
—
(176
)
Adjusted Segment EBITDA
$
(9,343
)
$
(10,629
)
$
(10,767
)
$
(40,496
)
$
(39,868
)
________________
(B)
The term Adjusted Segment EBITDA
consists of operating income (loss) plus other income (expense),
depreciation and amortization expense, facility consolidation
charges, patent defense costs and loss on settlement of disputes
with the seller of GEODynamics, Inc., less gains on extinguishment
of the 2023 Notes. Adjusted Segment EBITDA is not a measure of
financial performance under GAAP and should not be considered in
isolation from or as a substitute for operating income (loss) or
cash flow measures prepared in accordance with GAAP or as a measure
of profitability or liquidity. Additionally, Adjusted Segment
EBITDA may not be comparable to other similarly titled measures of
other companies. The Company has included Adjusted Segment EBITDA
as supplemental disclosure because its management believes that
Adjusted Segment EBITDA provides useful information regarding its
ability to service debt and to fund capital expenditures and
provides investors a helpful measure for comparing its operating
performance with the performance of other companies that have
different financing and capital structures or tax rates. The
Company uses Adjusted Segment EBITDA to compare and to monitor the
performance of its business segments to other comparable public
companies and as a benchmark for the award of incentive
compensation under its annual incentive compensation plan. The
table above sets forth reconciliations of Adjusted Segment EBITDA
to operating income (loss), which is the most directly comparable
measure of financial performance calculated under GAAP.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240220448850/en/
Lloyd A. Hajdik Oil States International, Inc. Executive Vice
President, Chief Financial Officer and Treasurer (713) 652-0582
Oil States (NYSE:OIS)
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