Oceaneering Announces Realigned Reporting Segments

HOUSTON, Sept. 24, 2020 /PRNewswire/ -- Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today announced that, beginning with results for the quarter ending September 30, 2020, it will be reporting financial results consistent with its newly realigned operating segments. This realignment reflects how Oceaneering now manages its businesses and supports its ongoing efforts to achieve greater cost efficiencies.

Rod Larson, President and Chief Executive Officer of Oceaneering, stated, "An integral part of our cost-savings effort has focused on exploiting synergies within our businesses. As a result of this effort, we have reorganized our business units into segments that better leverage common attributes, which we believe will drive increased value for our customers and our shareholders. The new structure organizes the company's business units around five operating segments, as follows:

  • Subsea Robotics - Our Subsea Robotics ("SSR") segment consists of our prior Remotely Operated Vehicles ("ROV") segment, and ROV tooling (previously in our Subsea Products segment) and survey services (previously in our Subsea Projects segment). Senior Vice President, Martin J. McDonald is leading this segment.

  • Manufactured Products - Our Manufactured Products ("MP") segment consists of our manufactured products business (previously in our Subsea Products segment), and theme park entertainment systems and automated guided vehicles ("AGV") (previously in our Advanced Technologies segment). The alignment of entertainment systems and AGV with our manufactured products business allows us to leverage our manufacturing and project management expertise in these commercial businesses. Senior Vice President, Shaun R. Roedel is leading this segment.

  • Offshore Projects Group - Our Offshore Projects Group ("OPG") segment consists of our prior Subsea Projects segment, less survey services and global data solutions, and our service and rental business, less ROV tooling (previously in our Subsea Products segment). This combination brings together business units that frequently work together and promotes increased efficiency in bidding, project management, and the use of offshore technicians. Senior Vice President, Benjamin M. Laura is leading this segment.

  • Integrity Management & Digital Solutions - Our Integrity Management & Digital Solutions ("IMDS") segment consists of our prior Asset Integrity segment and our global data solutions business ("GDS") (previously in our Subsea Projects segment). The inclusion of GDS in this segment facilitates optimized digital and software solutions to our integrity management services. Senior Vice President, Kishore Sundararajan is leading this segment.

  • Aerospace and Defense Technologies - Our Aerospace and Defense Technologies ("ADTech") segment consists of our government business (previously in our Advanced Technologies segment), focused on defense subsea technologies, marine services, and space systems. Senior Vice President, Philip G. Beierl is leading this segment.

"We are confident that this realignment will promote increased efficiencies and contribute meaningfully to our previously announced cost-reduction objectives."

A table depicting Oceaneering's realigned reporting segments follows. The impact on Oceaneering's 2020 first half reported financial results is detailed in the attached tables as well.

Statements in this press release that express a belief, expectation or intention, as well as those that are not historical fact, are forward-looking. The forward-looking statements in this press release include the statements concerning Oceaneering's beliefs that its realigned business segments will: drive increased value; leverage expertise; and promote increased efficiencies and cost-reduction objectives. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are based on current information and expectations of Oceaneering that involve a number of risks, uncertainties, and assumptions affecting Oceaneering's business, including risks typically attendant to changes in management and reporting structures. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the forward-looking statements prove incorrect, actual outcomes could vary materially from those indicated. These and other risks are more fully described in Oceaneering's latest annual report on Form 10-K and its other periodic filings with the Securities and Exchange Commission.

Oceaneering is a global provider of engineered services and products, primarily to the offshore energy industry. Through the use of its applied technology expertise, Oceaneering also serves the defense, entertainment, and aerospace industries.

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

Contact:
Mark Peterson
Vice President, Corporate Development and Investor Relations
Oceaneering International, Inc.
713-329-4507
investorrelations@oceaneering.com

 

 

OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES


NEW SEGMENTS


Subsea
Robotics (SSR)

Manufactured
Products (MP)

Offshore
Projects Group
(OPG)

Integrity
Management &
Digital Solutions
(IMDS)

Aerospace and
Defense
Technologies
(ADTech)






ROV 

ROV Tooling

Survey Services (survey, positioning, and geoscience)

Distribution Systems

Connection Systems

Entertainment Systems (theme parks)

AGV Solutions

Vessels

Offshore Services

Route clearance & trenching
 

Service & Rental (well intervention, Installation Workover Control Systems (IWOCS), large work packages)

 

Non-destructive Testing (NDT)
 

Inspection
 

Integrity Management
 

Digital Solutions: Maritime Shipping and GDS

 

Defense Subsea Technologies
 

Marine Services
 

Space Systems

 

Business remains in renamed segment
Business shifted from different segment






 

SEGMENT INFORMATION (RECAST)
















For the Three Months Ended


For the Six Months Ended







Jun 30, 2020


Jun 30, 2019


Mar 31, 2020


Jun 30, 2020


Jun 30, 2019







($ in thousands)












Subsea Robotics














Revenue



$

119,234



$

152,450



$

139,770



$

259,004



$

281,056



Gross margin



$

21,324



$

25,458



$

19,473



$

40,797



$

39,046


Operating income (loss)



$

11,662



$

14,714



$

(94,083)



$

(82,421)



$

17,820


Operating income (loss) %



10

%


10

%


(67)

%


(32)

%


6

%


ROV Days available



22,750



25,006



22,750



45,500



49,512



ROV Days utilized



13,501



15,423



14,853



28,354



28,365



ROV Utilization



59

%


62

%


65

%


62

%


57

%
















Manufactured Products














Revenue



$

100,570



$

116,964



$

166,534



$

267,104



$

220,001



Gross margin



$

13,679



$

13,693



$

17,949



$

31,628



$

22,931


Operating income (loss)



$

3,865



$

3,542



$

(66,138)



$

(62,273)



$

3,228


Operating income (loss) %



4

%


3

%


(40)

%


(23)

%


1

%

Backlog at end of period



$

380,000



$

570,000



$

427,000



$

380,000



$

570,000

















Offshore Projects Group














Revenue



$

73,840



$

84,585



$

74,254



$

148,094



$

200,078



Gross margin



$

3,170



$

2,853



$

2,095



$

5,265



$

11,826


Operating income (loss)



$

(4,135)



$

(5,027)



$

(79,323)



$

(83,458)



$

(2,758)


Operating income (loss) %



(6)

%


(6)

%


(107)

%


(56)

%


(1)

%
















Integrity Management & Digital Solutions














Revenue



$

53,969



$

66,857



$

64,729



$

118,698



$

132,725



Gross margin



$

5,455



$

7,773



$

9,792



$

15,247



$

14,882


Operating income (loss)



$

(1,825)



$

(464)



$

(121,535)



$

(123,360)



$

(1,948)


Operating income (loss) %



(3)

%


(1)

%


(188)

%


(104)

%


(1)

%
















Aerospace and Defense Technologies














Revenue



$

79,603



$

74,925



$

91,381



$

170,984



$

155,807



Gross margin



$

17,313



$

13,893



$

17,485



$

34,798



$

27,274


Operating income (loss)



$

13,430



$

9,362



$

12,971



$

26,401



$

18,505


Operating income (loss) %



17

%


12

%


14

%


15

%


12

%















Unallocated Expenses













Gross margin



$

(18,404)



$

(21,687)



$

(20,042)



$

(38,446)



$

(46,389)


Operating income (loss)



$

(28,179)



$

(31,762)



$

(32,649)



$

(60,828)



$

(66,196)















Total


















Revenue



$

427,216



$

495,781



$

536,668



$

963,884



$

989,667



Gross margin



$

42,537



$

41,983



$

46,752



$

89,289



$

69,570


Operating income (loss)



$

(5,182)



$

(9,635)



$

(380,757)



$

(385,939)



$

(31,349)


Operating income (loss) %



(1)

%


(2)

%


(71)

%


(40)

%


(3)

%


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
















 

SELECTED CASH FLOW INFORMATION (RECAST)


















For the Three Months Ended


For the Six Months Ended







Jun 30, 2020


Jun 30, 2019


Mar 31, 2020


Jun 30, 2020


Jun 30, 2019







(in thousands)













Capital Expenditures, including Acquisitions



$

10,631



$

40,898



$

27,229



$

37,860



$

70,862














Depreciation and amortization:












Energy Services and Products













Subsea Robotics



$

25,080



$

31,640



$

139,187



$

164,267



$

64,827



Manufactured Products



3,587



4,987



15,964



19,551



10,033



Offshore Projects Group



8,255



9,826



74,907



83,162



20,148



Integrity Management & Digital Solutions



757



2,025



124,343



125,100



4,083


Total Energy Services and Products



37,679



48,478



354,401



392,080



99,091


Aerospace and Defense Technologies



658



644



687



1,345



1,358


Unallocated Expenses



361



1,182



1,108



1,469



2,341


    Total Depreciation and Amortization



$

38,698



$

50,304



$

356,196



$

394,894



$

102,790

















Goodwill and long-lived asset impairment expense, reflected in the depreciation and amortization expense above, was $310 million in the three months ended March 31, 2020 and the six months ended June 30, 2020.
















 

RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION 

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

 

RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION





Adjusted Operating Income (Loss) and Margins by Segment (Recast)






For the Three Months Ended June 30, 2020





Subsea
Robotics


Manufactured Products


Offshore
Projects
Group


Integrity Management
& Digital
Solutions


Aerospace
and Defense Technologies


Unallocated Expenses


Total





($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP


$

11,662



$

3,865



$

(4,135)



$

(1,825)



$

13,430



$

(28,179)



$

(5,182)


Adjustments for the effects of:















Restructuring expenses and other


1,380



1,212



1,405



1,536





175



5,708




Total of adjustments


1,380



1,212



1,405



1,536





175



5,708



















Adjusted Operating Income (Loss)


$

13,042



$

5,077



$

(2,730)



$

(289)



$

13,430



$

(28,004)



$

526



















Revenue


$

119,234



$

100,570



$

73,840



$

53,969



$

79,603





$

427,216


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


10

%


4

%


(6)

%


(3)

%


17

%




(1)

%

Operating income (loss)% using adjusted amounts


11

%


5

%


(4)

%


(1)

%


17

%




%






















For the Three Months Ended June 30, 2019





Subsea
Robotics


Manufactured Products


Offshore
Projects
Group


Integrity Management
& Digital
Solutions


Aerospace
and Defense Technologies


Unallocated Expenses


Total





($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP


$

14,714



$

3,542



$

(5,027)



$

(464)



$

9,362



$

(31,762)



$

(9,635)



















Adjusted Operating Income (Loss)


$

14,714



$

3,542



$

(5,027)



$

(464)



$

9,362



$

(31,762)



$

(9,635)



















Revenue


$

152,450



$

116,964



$

84,585



$

66,857



$

74,925





$

495,781


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


10

%


3

%


(6)

%


(1)

%


12

%




(2)

%

Operating income (loss)% using adjusted amounts


10

%


3

%


(6)

%


(1)

%


12

%




(2)

%























For the Three Months Ended March 31, 2020





Subsea
Robotics


Manufactured Products


Offshore
Projects
Group


Integrity Management
& Digital
Solutions


Aerospace
and Defense Technologies


Unallocated Expenses


Total





($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP


$

(94,083)



$

(66,138)



$

(79,323)



$

(121,535)



$

12,971



$

(32,649)



$

(380,757)


Adjustments for the effects of:
















Long-lived assets impairments




61,074



7,522



167







68,763



Long-lived assets write-offs


7,328













7,328



Goodwill impairment


102,118



11,388



66,285



123,214







303,005



Restructuring expenses and other


919



1,984



1,216



2,231





280



6,630




Total of adjustments


110,365



74,446



75,023



125,612





280



385,726


Adjusted Operating Income (Loss)


$

16,282



$

8,308



$

(4,300)



$

4,077



$

12,971



$

(32,369)



$

4,969



















Revenue


$

139,770



$

166,534



$

74,254



$

64,729



$

91,381





$

536,668


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


(67)

%


(40)

%


(107)

%


(188)

%


14

%




(71)

%

Operating income (loss) % using adjusted amounts


12

%


5

%


(6)

%


6

%


14

%




1

%

 





Adjusted Operating Income (Loss) and Margins by Segment (Recast)






For the Six Months Ended June 30, 2020





Subsea
Robotics


Manufactured Products


Offshore
Projects
Group


Integrity
Management
& Digital
Solutions


Aerospace
and Defense Technologies


Unallocated
Expenses


Total





($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP


$

(82,421)



$

(62,273)



$

(83,458)



$

(123,360)



$

26,401



$

(60,828)



$

(385,939)


Adjustments for the effects of:















Long-lived assets impairments




61,074



7,522



167







68,763



Long-lived assets write-offs


7,328













7,328



Goodwill impairment


102,118



11,388



66,285



123,214







303,005



Restructuring expenses and other


2,299



3,196



2,621



3,767





455



12,338




Total of adjustments


111,745



75,658



76,428



127,148





455



391,434



















Adjusted Operating Income (Loss)


$

29,324



$

13,385



$

(7,030)



$

3,788



$

26,401



$

(60,373)



$

5,495



















Revenue


$

259,004



$

267,104



$

148,094



$

118,698



$

170,984





$

963,884


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


(32)

%


(23)

%


(56)

%


(104)

%


15

%




(40)

%

Operating income (loss)% using adjusted amounts


11

%


5

%


(5)

%


3

%


15

%




1

%






















For the Six Months Ended June 30, 2019





Subsea
Robotics


Manufactured Products


Offshore
Projects
Group


Integrity
Management
& Digital
Solutions


Aerospace
and Defense Technologies


Unallocated
Expenses


Total





($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP


$

17,820



$

3,228



$

(2,758)



$

(1,948)



$

18,505



$

(66,196)



$

(31,349)



















Adjusted Operating Income (Loss)


$

17,820



$

3,228



$

(2,758)



$

(1,948)



$

18,505



$

(66,196)



$

(31,349)



















Revenue


$

281,056



$

220,001



$

200,078



$

132,725



$

155,807





$

989,667


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


6

%


1

%


(1)

%


(1)

%


12

%




(3)

%

Operating income (loss)% using adjusted amounts


6

%


1

%


(1)

%


(1)

%


12

%




(3)

%































































 

RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION





EBITDA and Adjusted EBITDA and Margins by Segment (Recast)






For the Three Months Ended June 30, 2020





Subsea
Robotics


Manufactured Products


Offshore
Projects
Group


Integrity Management
& Digital
Solutions


Aerospace
and Defense Technologies


Unallocated Expenses
and other


Total





($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP


$

11,662



$

3,865



$

(4,135)



$

(1,825)



$

13,430



$

(28,179)



$

(5,182)


Adjustments for the effects of:















Depreciation and amortization


25,080



3,587



8,255



757



658



361



38,698



Other pre-tax












(2,653)



(2,653)



EBITDA


36,742



7,452



4,120



(1,068)



14,088



(30,471)



30,863


Adjustments for the effects of:















Restructuring expenses and other


1,380



1,212



1,405



1,536





175



5,708



Foreign currency (gains) losses












3,908



3,908




Total of adjustments


1,380



1,212



1,405



1,536





4,083



9,616


Adjusted EBITDA


$

38,122



$

8,664



$

5,525



$

468



$

14,088



$

(26,388)



$

40,479



















Revenue


$

119,234



$

100,570



$

73,840



$

53,969



$

79,603





$

427,216


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


10

%


4

%


(6)

%


(3)

%


17

%




(1)

%

EBITDA Margin


31

%


7

%


6

%


(2)

%


18

%




7

%

Adjusted EBITDA Margin


32

%


9

%


7

%


1

%


18

%




9

%







































For the Three Months Ended June 30, 2019





Subsea
Robotics


Manufactured Products


Offshore
Projects
Group


Integrity Management
& Digital
Solutions


Aerospace
and Defense Technologies


Unallocated Expenses
and other


Total





($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP


$

14,714



$

3,542



$

(5,027)



$

(464)



$

9,362



$

(31,762)



$

(9,635)


Adjustments for the effects of:















Depreciation and amortization


31,640



4,987



9,826



2,025



644



1,182



50,304



Other pre-tax












(328)



(328)



EBITDA


46,354



8,529



4,799



1,561



10,006



(30,908)



40,341


Adjustments for the effects of:















Foreign currency (gains) losses












(59)



(59)




Total of adjustments












(59)



(59)


Adjusted EBITDA


$

46,354



$

8,529



$

4,799



$

1,561



$

10,006



$

(30,967)



$

40,282



















Revenue


$

152,450



$

116,964



$

84,585



$

66,857



$

74,925





$

495,781


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


10

%


3

%


(6)

%


(1)

%


12

%




(2)

%

EBITDA Margin


30

%


7

%


6

%


2

%


13

%




8

%

Adjusted EBITDA Margin


30

%


7

%


6

%


2

%


13

%




8

%










For the Three Months Ended March 31, 2020





Subsea
Robotics


Manufactured Products


Offshore
Projects
Group


Integrity Management
& Digital
Solutions


Aerospace
and Defense Technologies


Unallocated Expenses
and other


Total





($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP


$

(94,083)



$

(66,138)



$

(79,323)



$

(121,535)



$

12,971



$

(32,649)



$

(380,757)


Adjustments for the effects of:















Depreciation and amortization


139,187



15,964



74,907



124,343



687



1,108



356,196



Other pre-tax












(6,264)



(6,264)



EBITDA


45,104



(50,174)



(4,416)



2,808



13,658



(37,805)



(30,825)


Adjustments for the effects of:















Long-lived assets impairments




61,074



7,522



167







68,763



Restructuring expenses and other


919



1,984



1,216



2,231





280



6,630



Foreign currency (gains) losses












7,050



7,050




Total of adjustments


919



63,058



8,738



2,398





7,330



82,443


Adjusted EBITDA


$

46,023



$

12,884



$

4,322



$

5,206



$

13,658



$

(30,475)



$

51,618



















Revenue


$

139,770



$

166,534



$

74,254



$

64,729



$

91,381





$

536,668


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


(67)

%


(40)

%


(107)

%


(188)

%


14

%




(71)

%

EBITDA Margin


32

%


(30)

%


(6)

%


4

%


15

%




(6)

%

Adjusted EBITDA Margin


33

%


8

%


6

%


8

%


15

%




10

%

 





EBITDA and Adjusted EBITDA and Margins by Segment (Recast)






For the Six Months Ended June 30, 2020





Subsea
Robotics


Manufactured
Products


Offshore
Projects
Group


Integrity Management
& Digital
Solutions


Aerospace
and Defense Technologies


Unallocated Expenses
and other


Total





($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP


$

(82,421)



$

(62,273)



$

(83,458)



$

(123,360)



$

26,401



$

(60,828)



$

(385,939)


Adjustments for the effects of:















Depreciation and amortization


164,267



19,551



83,162



125,100



1,345



1,469



394,894



Other pre-tax












(8,917)



(8,917)



EBITDA


81,846



(42,722)



(296)



1,740



27,746



(68,276)



38


Adjustments for the effects of:















Long-lived assets impairments




61,074



7,522



167







68,763



Restructuring expenses and other


2,299



3,196



2,621



3,767





455



12,338



Foreign currency (gains) losses












10,958



10,958




Total of adjustments


2,299



64,270



10,143



3,934





11,413



92,059


Adjusted EBITDA


$

84,145



$

21,548



$

9,847



$

5,674



$

27,746



$

(56,863)



$

92,097



















Revenue


$

259,004



$

267,104



$

148,094



$

118,698



$

170,984





$

963,884


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


(32)

%


(23)

%


(56)

%


(104)

%


15

%




(40)

%

EBITDA Margin


32

%


(16)

%


%


1

%


16

%




%

Adjusted EBITDA Margin


32

%


8

%


7

%


5

%


16

%




10

%






















For the Six Months Ended June 30, 2019





Subsea
Robotics


Manufactured
Products


Offshore
Projects
Group


Integrity Management
& Digital
Solutions


Aerospace
and Defense Technologies


Unallocated Expenses
and other


Total





($ in thousands)

Operating Income (Loss) as reported in accordance with GAAP


$

17,820



$

3,228



$

(2,758)



$

(1,948)



$

18,505



$

(66,196)



$

(31,349)


Adjustments for the effects of:















Depreciation and amortization


64,827



10,033



20,148



4,083



1,358



2,341



102,790



Other pre-tax












(113)



(113)



EBITDA


82,647



13,261



17,390



2,135



19,863



(63,968)



71,328


Adjustments for the effects of:















Foreign currency (gains) losses












(673)



(673)




Total of adjustments












(673)



(673)


Adjusted EBITDA


$

82,647



$

13,261



$

17,390



$

2,135



$

19,863



$

(64,641)



$

70,655



















Revenue


$

281,056



$

220,001



$

200,078



$

132,725



$

155,807





$

989,667


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


6

%


1

%


(1)

%


(1)

%


12

%




(3)

%

EBITDA Margin


29

%


6

%


9

%


2

%


13

%




7

%

Adjusted EBITDA Margin


29

%


6

%


9

%


2

%


13

%




7

%










































 

 

Cision View original content:http://www.prnewswire.com/news-releases/oceaneering-announces-realigned-reporting-segments-301137879.html

SOURCE Oceaneering International, Inc.

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