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Civeo Corporation: Building Up To A 300% Upside
Seeking Alpha· 2025-05-15 21:35
Editor's note: Seeking Alpha is proud to welcome The Buy Side as a new contributing analyst. You can become one too! Share your best investment idea by submitting your article for review to our editors. Get published, earn money, and unlock exclusive SA Premium access.With over a decade of experience in long-term value investing "The Buy Side" takes a disciplined, fundamentals-driven approach in identifying undervalued businesses. The mission is clear: build and preserve generational wealth by investing in ...
Stonegate Capital Partners Revises Coverage on Civeo Corporation (CVEO) 2025 Q1
Newsfile· 2025-05-08 12:49
Stonegate Capital Partners Revises Coverage on Civeo Corporation (CVEO) 2025 Q1May 08, 2025 8:49 AM EDT | Source: Reportable, Inc. Dallas, Texas--(Newsfile Corp. - May 8, 2025) - Civeo Corporation (NYSE: CVEO): Stonegate Capital Partners updates their coverage on Civeo Corporation. CVEO reported revenue, adj EBITDA, and adj EPS of $144.0M, $12.7M, and ($0.72), respectively. This compares to our/consensus estimates of $150.7M/$148.1M, $12.0M/$14.8M, and ($0.84)/($0.43), respectively. Consolidat ...
Stonegate Capital Partners Updates Coverage on Civeo Corporation (CVEO) 2025 Q1
Newsfile· 2025-05-01 13:25
Stonegate Capital Partners Updates Coverage on Civeo Corporation (CVEO) 2025 Q1May 01, 2025 9:25 AM EDT | Source: Reportable, Inc. Dallas, Texas--(Newsfile Corp. - May 1, 2025) - Civeo Corporation (NYSE: CVEO): Stonegate Capital Partners updates their coverage on Civeo Corporation. Civeo reported negative free cash flow of ($13.5M) in 1Q25, down from $7.2M in the prior-year period, primarily due to negative operating cash flow of ($8.4M) and $5.3M in capital expenditures. Despite near-term hea ...
Civeo(CVEO) - 2025 Q1 - Quarterly Report
2025-04-30 19:15
Part I -- FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements%3A) Civeo Corporation reported a net loss of **$9.8 million** for Q1 2025, a significant increase from the **$5.1 million** net loss in Q1 2024, driven by a **13%** year-over-year revenue decline to **$144.0 million** - The company provides hospitality services, including catering, lodging, and facility management, to remote workforces in the natural resource sectors of Australia and Canada[19](index=19&type=chunk) Consolidated Statements of Operations Highlights (Q1 2025 vs. Q1 2024) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Revenue** | $144.0 million | $166.1 million | | **Operating Loss** | ($5.5 million) | ($1.8 million) | | **Net Loss Attributable to Civeo** | ($9.8 million) | ($5.1 million) | | **Diluted Net Loss Per Share** | ($0.72) | ($0.35) | Consolidated Balance Sheet Highlights (As of March 31, 2025) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $28.4 million | $5.2 million | | **Total Assets** | $423.8 million | $405.1 million | | **Long-term debt** | $87.4 million | $43.3 million | | **Total Liabilities** | $203.0 million | $168.1 million | | **Total Shareholders' Equity** | $220.7 million | $237.0 million | Consolidated Statements of Cash Flows Highlights (Q1 2025 vs. Q1 2024) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | ($8.4 million) | $6.0 million | | **Net cash provided by (used in) investing activities** | ($5.1 million) | $1.2 million | | **Net cash provided by financing activities** | $36.6 million | $6.6 million | - In Q1 2025, the company repurchased **153,100 shares** for **$3.3 million** and paid a quarterly dividend of **$0.25 per share**[60](index=60&type=chunk)[62](index=62&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the decline in performance primarily to lower activity in its Canadian segment, partially offset by revenue growth in the Australian segment, while navigating a challenging macroeconomic environment and prioritizing share repurchases over dividends [Overview and Macroeconomic Environment](index=19&type=section&id=Overview%20and%20Macroeconomic%20Environment) The company's performance is closely tied to the natural resources sector, with demand sensitive to commodity prices, while managing inflation, labor shortages, and a pending acquisition in Australia - Demand for hospitality services is driven by operations of natural resource projects and is sensitive to commodity price expectations for met coal, oil, iron ore, and LNG[80](index=80&type=chunk) - On February 18, 2025, the company entered an agreement to acquire four villages with **1,340 rooms** in Australia's Bowen Basin for **A$105 million**, with the deal expected to close in Q2 2025[93](index=93&type=chunk) - The company is managing inflation risk through negotiated service scope changes and contractual protections, but continues to face pressure on labor, food, and fuel costs[94](index=94&type=chunk) - Expected capital expenditures for 2025 are projected to be in the range of **$20 million to $25 million**[100](index=100&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) For Q1 2025, Civeo's consolidated revenues fell **13%** to **$144.0 million**, operating loss widened to **$5.5 million**, and net loss increased to **$9.8 million**, primarily due to lower Canadian activity and non-recurring prior-year gains Consolidated Results of Operations (Q1 2025 vs. Q1 2024) | Metric (in millions) | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $144.0 | $166.1 | ($22.1) | | **Operating Loss** | ($5.5) | ($1.8) | ($3.7) | | **Net Loss Attributable to Civeo** | ($9.8) | ($5.1) | ($4.7) | - The decrease in revenue was primarily driven by lower billed rooms at Canadian oil sands lodges and reduced occupancy at the Sitka Lodge as LNG facility construction nears completion[106](index=106&type=chunk) - The Q1 2024 results included a **$6.1 million** net gain from the sale of the McClelland Lake Lodge and a **$7.8 million** impairment charge, which impacted year-over-year comparisons[105](index=105&type=chunk) [Segment Results of Operations](index=25&type=section&id=Segment%20Results%20of%20Operations) The Australian segment's revenue grew **13%** to **$103.6 million** in Q1 2025, while the Canadian segment's revenue plummeted **40%** to **$40.4 million** due to significantly lower occupancy Australian Segment Performance (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total Revenues** | $103.6 million | $91.7 million | | **Gross Margin %** | 26.0% | 27.9% | | **Total Billed Rooms** | 625,636 | 613,936 | - Australian revenue growth was driven by new business in integrated services villages in Western Australia, despite a **4.5%** weakening of the AUD against the USD[117](index=117&type=chunk) Canadian Segment Performance (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total Revenues** | $40.4 million | $67.2 million | | **Gross Margin %** | 6.8% | 14.7% | | **Total Billed Rooms** | 358,697 | 610,032 | - The Canadian revenue decline was caused by lower billed rooms at oil sands lodges and reduced occupancy at Sitka Lodge as the Kitimat LNG facility nears completion[120](index=120&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, Civeo had total available liquidity of **$162.2 million**, used **$8.4 million** in cash from operations, amended its credit agreement, and suspended quarterly dividends to prioritize share repurchases Liquidity Position | Metric (in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Unused Availability | $133.8 | $197.0 | | Cash and cash equivalents | $28.4 | $5.2 | | **Total available liquidity** | **$162.2** | **$202.2** | - In March 2025, the Board increased the common share repurchase program authorization to **10%** of outstanding shares, which was further increased to **20%** in April 2025[131](index=131&type=chunk) - In April 2025, the Board suspended quarterly dividends to prioritize returning capital to shareholders through ongoing share repurchases[136](index=136&type=chunk) - The company amended its Syndicated Facility Agreement on March 24, 2025, to increase the Australian revolving commitments by **$20.0 million** to an aggregate of **$55.0 million**[132](index=132&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are exposure to changes in interest rates on its floating-rate debt and foreign currency exchange rate fluctuations - A **100 basis point** increase in floating interest rates would increase annual consolidated interest expense by approximately **$0.9 million**, based on debt levels at March 31, 2025[139](index=139&type=chunk) - A hypothetical **10%** adverse change in the value of the Canadian and Australian dollar relative to the U.S. dollar would result in translation adjustments of approximately **$11 million** and **$23 million**, respectively, recorded in other comprehensive loss[140](index=140&type=chunk) [Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's management concluded that its disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during Q1 2025 - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[141](index=141&type=chunk) - There were no changes in internal control over financial reporting during Q1 2025 that have materially affected, or are reasonably likely to materially affect, internal controls[142](index=142&type=chunk) Part II -- OTHER INFORMATION [Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various pending claims and lawsuits, but management believes the ultimate liability will not materially adversely affect its financial position or results - Civeo is a party to various pending or threatened claims and lawsuits concerning its commercial operations, products, and employees[144](index=144&type=chunk) - Management believes that any ultimate liability from these proceedings, not covered by indemnity or insurance, will not have a material adverse effect on the company's financial condition[144](index=144&type=chunk) [Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) Changes in U.S. or foreign trade policies, including tariffs and protectionist measures, could adversely impact the company's future net income, cash flows, and financial condition - Changes in U.S. or foreign trade policies, such as tariffs and other restrictive measures, pose a risk to the company's future net income and cash flows[146](index=146&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, Civeo repurchased a total of **177,013 common shares**, including **153,092 shares** under its publicly announced program at an average price of **$21.75 per share** Share Repurchases in Q1 2025 | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | | :--- | :--- | :--- | :--- | | Jan 2025 | — | $ — | — | | Feb 2025 | 23,921 | $26.96 | — | | Mar 2025 | 153,092 | $21.75 | 153,092 | | **Total** | **177,013** | **$21.75** | **153,092** | - The Share Repurchase Program was increased in March and April 2025, authorizing the repurchase of up to **20%** of total common shares outstanding (approx. **2,690,000 shares**)[150](index=150&type=chunk) [Other Information](index=32&type=section&id=Item%205.%20Other%20Information) There was no information to report under this item for the period - None[149](index=149&type=chunk) [Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including an Asset Sale and Purchase Agreement, an amendment to the Syndicated Facility Agreement, and required certifications - Filed exhibits include the Asset Sale and Purchase Agreement dated Feb 18, 2025, and the Third Amendment to Syndicated Facility Agreement dated March 24, 2025[151](index=151&type=chunk)
Civeo(CVEO) - 2025 Q1 - Earnings Call Transcript
2025-04-30 13:32
Civeo (CVEO) Q1 2025 Earnings Call April 30, 2025 08:30 AM ET Company Participants Regan Nielsen - Senior Director of Corporate Development & Investor RelationsBradley Dodson - CEO, President & DirectorCollin Gerry - SVP, CFO & TreasurerStephen Gengaro - Managing DirectorDave Storms - Director of Equity Research Conference Call Participants Alex Hantman - Analyst Operator and welcome to the Silvia Corporation First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only ...
Civeo (CVEO) Reports Q1 Loss, Lags Revenue Estimates
ZACKS· 2025-04-30 12:40
Civeo (CVEO) came out with a quarterly loss of $0.72 per share versus the Zacks Consensus Estimate of a loss of $0.78. This compares to loss of $0.26 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.69%. A quarter ago, it was expected that this provider of remote-site workforce housing would post a loss of $0.34 per share when it actually produced a loss of $0.88, delivering a surprise of -158.82%.Over the last four quarters, ...
Civeo(CVEO) - 2025 Q1 - Earnings Call Transcript
2025-04-30 12:30
Civeo (CVEO) Q1 2025 Earnings Call April 30, 2025 08:30 AM ET Speaker0 and welcome to the Silvia Corporation First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Regan Nielsen. Please go ahead. Speaker1 Thank you, and welcome to Civeo's first quarter twenty twenty five earnings conference ...
Civeo(CVEO) - 2025 Q1 - Quarterly Results
2025-04-30 12:01
Civeo Reports First Quarter 2025 Results Highlights: HOUSTON, April 30, 2025 (BUSINESS WIRE) -- Civeo Corporation (NYSE:CVEO) today reported financial and operating results for the first quarter ended March 31, 2025. "Our first quarter results were consistent with our expectations; we continued to deliver topline growth in Australia supported by our recent integrated services contract award, and our operations in Canada continued to be impacted by macroeconomic headwinds that intensified in the first quarte ...
Earnings Preview: Civeo (CVEO) Q1 Earnings Expected to Decline
ZACKS· 2025-04-18 15:05
The market expects Civeo (CVEO) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stoc ...
Stonegate Capital Partners Updates Coverage on Civeo Corporation (CVEO) 2024 Q4
Newsfile· 2025-02-28 14:28
Core Insights - Civeo Corporation (CVEO) remains a strong free cash flow generator, reporting $68.4 million in free cash flow (FCF) for FY24, despite challenges in the Canadian segment [1] - The company has provided FCF guidance for 2025, estimating between $30 million to $40 million [1] - With disciplined capital allocation, a robust balance sheet, and continued expansion in Australia, Civeo is well-positioned to drive long-term value for shareholders, with an expected increase in FCF in the coming years [1] Financial Highlights - Civeo has been awarded a six-year integrated services contract renewal valued at A$1.4 billion across eleven villages [6] - The company executed a strategic acquisition in the Bowen Basin, purchasing four villages for approximately $67 million [6] - For 2025, Civeo projects revenue to range from $630 million to $660 million, with adjusted EBITDA expected to be between $80 million and $90 million [6]