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Mar 31, 2024
Oil States Q1 2024 Earnings Report
Reported a net loss due to goodwill impairment and decreased revenues.
Key Takeaways
Oil States International reported a net loss of $13.4 million, or $0.21 per diluted share, for Q1 2024. Consolidated revenues decreased by 20% sequentially to $167.3 million, and Adjusted EBITDA was $15.5 million. The results were impacted by seasonality, the timing of revenue recognition in the Offshore Manufactured Products segment, and a non-cash goodwill impairment charge of $10.0 million.
Net loss of $13.4 million, or $0.21 per diluted share, reported for the quarter, including a $10.0 million non-cash goodwill impairment charge.
Excluding goodwill and other charges, net loss was $1.9 million, or $0.03 per diluted share (non-GAAP).
Consolidated revenues decreased 20% sequentially to $167.3 million, driven by the timing of order conversions from backlog.
Adjusted EBITDA was $15.5 million.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Oil States anticipates continued expansion in offshore activity globally, coupled with enhanced competitive positioning through recent technology introductions. They expect the benefits of their expanded technology offering to extend beyond the next couple of years.
Positive Outlook
- Continued expansion in offshore activity globally.
- Enhanced competitive positioning in each business segment through recent new technology introductions.
- Benefits of expanded technology offering are expected to extend well beyond the next couple of years.
- Received two 2024 Spotlight on New Technology™ Awards from the Offshore Technology Conference for Ultra-deepwater Swift™ connector design and ACTIVEHub™ platform with ACTIVELatch™ technology.
- The company amended its ABL Facility during the quarter to extend the maturity date to February 16, 2028.
Challenges Ahead
- First quarter consolidated revenues and Adjusted EBITDA decreased sequentially due primarily to the impacts of seasonality and timing of revenue recognition for percentage-of-completion projects in Offshore Manufactured Products segment.
- Certain orders moved out of the quarter, resulting in a quarterly book-to-bill ratio of 0.8x.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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