Financial Performance - Revenues for the three months ended March 31, 2021, were $125,430,000, a decrease of 9.5% compared to $138,792,000 for the same period in 2020[9] - Net loss attributable to Civeo Corporation for the three months ended March 31, 2021, was $9,484,000, compared to a net loss of $146,070,000 for the same period in 2020[9] - Basic and diluted net loss per share attributable to Civeo Corporation common shareholders was $(0.70) for the three months ended March 31, 2021, compared to $(10.43) for the same period in 2020[9] - Comprehensive loss attributable to Civeo Corporation for the three months ended March 31, 2021, was $11,101,000, compared to $194,516,000 for the same period in 2020[13] - Net loss for the three months ended March 31, 2021, was $9,425 thousand, a significant improvement compared to a net loss of $145,812 thousand for the same period in 2020[28] - Operating cash flows for the three months ended March 31, 2021, were $12,817 thousand, down from $20,837 thousand in the prior year[28] - Total revenues for the first quarter of 2021 were $125,430,000, a decrease of 9.4% compared to $138,792,000 in the same period of 2020[42] - Operating loss for the total company was $(9,901,000) for Q1 2021, compared to an operating loss of $(149,069,000) in Q1 2020, indicating an improvement in operational performance[88] Assets and Liabilities - Total current assets decreased to $108,660,000 as of March 31, 2021, from $119,213,000 as of December 31, 2020[17] - Total liabilities decreased to $346,039,000 as of March 31, 2021, from $365,496,000 as of December 31, 2020[17] - Long-term debt, less current maturities, decreased to $200,756,000 as of March 31, 2021, from $214,000,000 as of December 31, 2020[17] - Total assets as of March 31, 2021, were $710,178,000, slightly down from $719,523,000 at the end of Q1 2020[88] - The company had a total debt of $235.803 million as of March 31, 2021, compared to $248.585 million at the end of 2020[68] Revenue Segments - Canada segment revenues decreased to $61,885,000 in Q1 2021 from $79,348,000 in Q1 2020, representing a decline of 22.0%[42] - Australia segment revenues increased to $59,637,000 in Q1 2021 from $49,113,000 in Q1 2020, reflecting a growth of 21.0%[42] - U.S. segment revenues fell to $3,908,000 in Q1 2021 from $10,331,000 in Q1 2020, a decrease of 62.1%[42] - Canadian segment revenues decreased by $17.5 million, or 22%, in Q1 2021 compared to Q1 2020, with a 26% decrease excluding currency effects[140] - Australian segment revenues increased by $10.5 million, or 21%, in Q1 2021 compared to Q1 2020, with a 3% increase excluding currency effects[144] - U.S. segment revenues decreased by $6.4 million, or 62%, in Q1 2021 compared to Q1 2020, due to reduced occupancy and drilling activity[146] Cash Flow and Expenditures - Cash and cash equivalents as of March 31, 2021, were $5,455,000, down from $6,155,000 as of December 31, 2020[17] - Capital expenditures for the three months ended March 31, 2021, were $3,372 thousand, compared to $2,651 thousand for the same period in 2020[28] - Cash provided by operations for the three months ended March 31, 2021, was $12.8 million, down 38.5% from $20.8 million in the same period of 2020[150] - Cash used in investing activities increased to $3.3 million in Q1 2021, compared to cash used of $2.6 million in Q1 2020, primarily due to proceeds from asset sales[152] - Net cash used in financing activities was $16.7 million in Q1 2021, compared to $15.6 million in Q1 2020, mainly due to repayments under revolving credit facilities[154] Impairments and Expenses - The company recorded impairment expenses of $93.6 million related to goodwill in Q1 2020 due to a decline in oil prices and market conditions[56] - The carrying values of certain asset groups were written down to estimated fair values of $43.5 million, resulting in an impairment expense of $38.1 million in the Canadian segment[59] - The company reported depreciation and amortization expenses of $21,269 thousand for the three months ended March 31, 2021, compared to $25,502 thousand in the same period of 2020[28] - Depreciation and amortization expense decreased by $4.2 million, or 17%, in Q1 2021 compared to Q1 2020, mainly due to prior impairments and asset life extensions[131] - Net interest expense decreased by $2.2 million, or 40%, in Q1 2021 compared to Q1 2020, attributed to lower average debt levels and interest rates[135] Taxation - Civeo's income tax expense for the three months ended March 31, 2021, was $1.1 million, or (12.9%) of pretax loss, compared to a tax benefit of $8.8 million, or 5.7% of pretax loss, for the same period in 2020[74] - Civeo's effective tax rate for the three months ended March 31, 2021, was impacted by the removal of Canada and the U.S. from the annual effective tax rate computation due to loss jurisdictions[74] Market Conditions and Future Outlook - The average price of Western Canadian Select (WCS) crude in Q1 2021 was $46.28 per barrel, compared to a low of $19.73 in Q2 2020, showing recovery in oil prices[108] - The WCS Differential decreased from $15.35 per barrel at the end of Q4 2020 to $10.26 at the end of Q1 2021, indicating improved pricing conditions for Canadian oil[108] - The ongoing trade dispute between China and Australia has led to volatility in Australian met coal pricing, impacting demand and occupancy at Australian villages[114] - Increased global infrastructure spending is expected to support long-term demand for met coal and iron ore, particularly in developing economies[113] - The company plans to enhance the quality of operations and maintain financial discipline as market conditions evolve[118] Shareholder Information - A reverse share split was executed on November 19, 2020, converting every twelve common shares into one common share, affecting the conversion price of preferred shares[31] - Future dividends will depend on financial condition, results of operations, and other factors, with no assurance of payment[161] - A total of 56,889 shares were purchased in February 2021 at an average price of $19.57 per share[177] - The shares purchased in February consisted of those surrendered by participants in the 2014 Equity Participation Plan to settle personal tax liabilities[177] - There was no share repurchase program in place during the quarter ended March 31, 2021[177]

//s civeo Stay Well. Work Well. Investor Presentation March 2021 Forward Looking Statements This presentation 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 include the statements regarding Civeo's future plans and outlook, including guidanc ...

Part I [Cautionary Statement Regarding Forward-Looking Statements](index=5&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This section provides a safe harbor statement for forward-looking statements and lists key risk factors - On November 19, 2020, the company executed a **1-for-12 reverse share split**, with all data retroactively adjusted[15](index=15&type=chunk) - Key risk factors that could cause actual results to differ from forward-looking statements include supply and demand for commodities, activity levels in Canadian oil sands, demand from China, and the **impact of the COVID-19 pandemic**[18](index=18&type=chunk)[19](index=19&type=chunk) [Business](index=7&type=section&id=Item%201.%20Business) The company provides hospitality services to the natural resources industry with operations in Canada, Australia, and the U.S Key Financial and Operational Metrics (2018-2020) | Metric | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Total Revenue** | $529.7M | $527.6M | $466.7M | | **Operating Loss** | ($147.2M) | ($49.1M) | ($88.1M) | | **Canada Billed Rooms** | 2,095,784 | 3,078,727 | 3,007,229 | | **Australia Billed Rooms** | 1,968,284 | 1,717,186 | 1,512,030 | Revenue by Type and Geography (2020) | Revenue Type | Canada | Australia | U.S. | Total | | :--- | :--- | :--- | :--- | :--- | | **Accommodation** | $202.5M | $144.1M | $2.5M | $349.1M | | **Mobile Facility Rental** | $33.2M | - | $16.8M | $50.0M | | **Food Service & Other** | $33.9M | $90.5M | $0.1M | $124.4M | | **Manufacturing** | - | - | $6.2M | $6.2M | | **Total Revenue** | **$269.6M** | **$234.5M** | **$25.5M** | **$529.7M** | - The company's largest customers in 2020 were **Fortescue Metals Group Ltd** and **Imperial Oil Limited**, each accounting for more than 10% of total revenues[105](index=105&type=chunk) [Operations by Geography](index=13&type=section&id=Item%201.%20Business%20-%20Operations%20by%20Geography) Operations are geographically diversified, with performance tied to regional commodity markets like oil sands, LNG, and met coal - **Canada (51% of 2020 Revenue):** Operations were negatively impacted by low oil prices and COVID-19, partially offset by LNG-related activity[54](index=54&type=chunk)[59](index=59&type=chunk)[64](index=64&type=chunk) - **Australia (44% of 2020 Revenue):** Performance was strong, driven by a 2019 acquisition and robust mining activity, despite trade dispute risks[75](index=75&type=chunk)[79](index=79&type=chunk)[45](index=45&type=chunk) - **U.S. (5% of 2020 Revenue):** The segment saw a significant downturn due to the collapse in oil prices and drilling activity[91](index=91&type=chunk)[96](index=96&type=chunk) [Contracts and Human Capital](index=23&type=section&id=Item%201.%20Business%20-%20Contracts%20and%20Human%20Capital) Revenues are supported by multi-year contracts, and the company manages a workforce of approximately 2,000 employees - Lodge and village revenues are typically secured under take-or-pay or exclusivity contracts ranging from several months to three years[111](index=111&type=chunk) Contracted Room Expiration Schedule (as of Dec 31, 2020) | Year | Contracted Rooms Expiring | | :--- | :--- | | 2021 | 1,983 | | 2022 | 2,492 | | 2023 | 1,000 | | Thereafter | 3,473 | | **Total** | **8,948** | - As of December 31, 2020, Civeo had approximately **1,000 full-time and 1,000 hourly employees**[115](index=115&type=chunk) [Government Regulation](index=24&type=section&id=Item%201.%20Business%20-%20Government%20Regulation) The business is significantly affected by environmental laws and climate change regulations across its operating geographies - The company's business is affected by environmental laws, with potential cost increases from climate-related regulations[122](index=122&type=chunk)[123](index=123&type=chunk) - **Canada:** Increasing federal carbon prices, set to reach **$170 per tonne by 2030**, may raise operating costs for oil sands customers[127](index=127&type=chunk)[137](index=137&type=chunk) - **Australia:** Operations are regulated by federal and state environmental controls, with potential reforms to the EPBC Act[154](index=154&type=chunk)[155](index=155&type=chunk) - **U.S.:** The Biden administration's reentry into the Paris Agreement signals potential for stricter future climate regulations[164](index=164&type=chunk)[170](index=170&type=chunk) [Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from commodity price volatility, the COVID-19 pandemic, customer concentration, and debt covenants - **Macroeconomic Risk:** Demand for services is highly sensitive to volatile commodity prices and has been adversely impacted by the COVID-19 pandemic[187](index=187&type=chunk)[193](index=193&type=chunk) - **Customer Risk:** The company depends on a few significant customers, and the loss of any major customer could materially harm the business[197](index=197&type=chunk)[204](index=204&type=chunk) - **Operational Risk:** The majority of major Canadian lodges are on land subject to provincial leases expiring between 2022 and 2028[217](index=217&type=chunk)[218](index=218&type=chunk) - **Financial Risk:** Substantial indebtedness with restrictive covenants poses a risk of default and debt acceleration[231](index=231&type=chunk)[233](index=233&type=chunk) [Unresolved Staff Comments](index=49&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that there are no unresolved staff comments - None[285](index=285&type=chunk) [Properties](index=49&type=section&id=Item%202.%20Properties) The company's principal properties consist of owned and leased land for its lodges, villages, and operational facilities - The company's principal properties include large-acreage sites for its lodges, with many major Canadian properties on leased government land[286](index=286&type=chunk)[288](index=288&type=chunk) - Leases for the Canadian lodge properties generally have initial ten-year terms and are scheduled to expire between 2021 and 2028[291](index=291&type=chunk) [Legal Proceedings](index=51&type=section&id=Item%203.%20Legal%20Proceedings) The company does not expect pending legal proceedings to have a material adverse effect on its financial position - Civeo is involved in various legal proceedings but does not expect the outcomes to have a material adverse effect on its financial condition[292](index=292&type=chunk) [Mine Safety Disclosures](index=51&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not applicable[293](index=293&type=chunk) Part II [Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities](index=52&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Shareholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common shares trade on the NYSE, and it currently does not pay cash dividends on common stock - The company's common shares are traded on the NYSE under the symbol **CVEO**[296](index=296&type=chunk) - Civeo does not pay cash dividends on its common shares; dividends on preferred shares are paid in-kind[298](index=298&type=chunk)[299](index=299&type=chunk) [Selected Financial Data](index=53&type=section&id=Item%206.%20Selected%20Financial%20Data) This section is not applicable - Not applicable[308](index=308&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=54&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant impact of COVID-19 and commodity prices, leading to a widened operating loss from impairments - The economic disruption from COVID-19 led to **decreased demand and cost containment initiatives**, including a 33% headcount reduction in North America[321](index=321&type=chunk) - In Australia, a trade dispute with China led to an unofficial embargo on Australian coal, causing met coal price volatility[334](index=334&type=chunk)[336](index=336&type=chunk) - The company expects 2021 capital expenditures to be approximately **$20.0 million to $25.0 million**, an increase from $10.1 million in 2020[343](index=343&type=chunk)[377](index=377&type=chunk) [Results of Operations (2020 vs. 2019)](index=59&type=section&id=Item%207.%20MD%26A%20-%20Results%20of%20Operations) The operating loss widened significantly due to $144.1 million in impairment expenses, despite flat revenues Consolidated Results of Operations (in thousands) | Line Item | 2020 | 2019 | | :--- | :--- | :--- | | **Total Revenues** | $529,729 | $527,555 | | **Total Costs and Expenses** | $676,917 | $576,606 | | **Operating Loss** | ($147,188) | ($49,051) | | **Net Loss Attributable to Civeo** | ($134,250) | ($58,491) | | **Net Loss per Share** | ($9.64) | ($4.33) | - The significant increase in operating and net loss in 2020 was primarily due to **impairment expenses of $144.1 million**[346](index=346&type=chunk)[353](index=353&type=chunk) - Depreciation and amortization expense **decreased by $27.2 million (22%)** in 2020, mainly due to asset impairments[352](index=352&type=chunk) - Other income increased, primarily due to receiving **$13.0 million from the Canada Emergency Wage Subsidy (CEWS)**[358](index=358&type=chunk) [Segment Results](index=62&type=section&id=Item%207.%20MD%26A%20-%20Segment%20Results) Strong Australian revenue growth offset sharp declines in the Canadian and U.S. segments Canadian Segment Results | Metric | 2020 | 2019 | | :--- | :--- | :--- | | **Revenues** | $269.6M | $325.7M | | **Gross Margin %** | 22.4% | 26.4% | | **Billed Rooms** | 2,095,784 | 3,078,727 | | **Average Daily Rate** | $95 | $91 | Australian Segment Results | Metric | 2020 | 2019 | | :--- | :--- | :--- | | **Revenues** | $234.5M | $156.1M | | **Gross Margin %** | 38.3% | 42.9% | | **Billed Rooms** | 1,968,284 | 1,717,186 | | **Average Daily Rate** | $73 | $73 | U.S. Segment Results | Metric | 2020 | 2019 | | :--- | :--- | :--- | | **Revenues** | $25.5M | $45.8M | | **Gross Margin %** | (10.0)% | 16.8% | [Liquidity and Capital Resources](index=64&type=section&id=Item%207.%20MD%26A%20-%20Liquidity%20and%20Capital%20Resources) The company maintained total available liquidity of $105.4 million and extended its credit agreement maturity to 2023 Available Liquidity (in thousands) | Component | Dec 31, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Unused Availability | $99,257 | $120,761 | | Cash and Equivalents | $6,155 | $3,331 | | **Total Available Liquidity** | **$105,412** | **$124,092** | - Cash from operations **increased to $117.4 million** in 2020 from $74.5 million in 2019, driven by working capital management and CEWS proceeds[375](index=375&type=chunk) - In September 2020, the company **amended its Credit Agreement, extending the maturity date to May 30, 2023**[388](index=388&type=chunk)[389](index=389&type=chunk) [Critical Accounting Policies](index=68&type=section&id=Item%207.%20MD%26A%20-%20Critical%20Accounting%20Policies) Key policies include the impairment testing of goodwill and long-lived assets, which involves significant management assumptions - The company identifies **impairment of goodwill and long-lived assets** as a critical accounting policy, requiring significant assumptions[405](index=405&type=chunk)[411](index=411&type=chunk)[414](index=414&type=chunk) - For the annual goodwill impairment test on November 30, 2020, a qualitative assessment concluded the fair value of the Australia unit exceeded its carrying value[409](index=409&type=chunk) - Revenue is generally recognized over time as customers receive and consume benefits[429](index=429&type=chunk)[430](index=430&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=73&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are exposure to changes in interest rates and foreign currency exchange rates - The company is exposed to interest rate risk through **$251.1 million of floating-rate debt**; a 100 basis point increase would raise annual interest expense by $2.5 million[444](index=444&type=chunk)[446](index=446&type=chunk) - A hypothetical 10% adverse change in the CAD and AUD exchange rates would result in translation adjustments of approximately **$16 million and $30 million**, respectively[447](index=447&type=chunk) [Financial Statements and Supplementary Data](index=74&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section incorporates by reference the company's Consolidated Financial Statements and supplementary data - The Consolidated Financial Statements are included from page 71 to 109 of the report[448](index=448&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=74&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its independent auditors - There were no changes in or disagreements with accountants on accounting and financial disclosure[449](index=449&type=chunk) [Controls and Procedures](index=75&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2020[451](index=451&type=chunk) - Management assessed internal control over financial reporting using the COSO framework and concluded it was effective as of December 31, 2020[454](index=454&type=chunk) - No material changes were made to the company's internal control over financial reporting during the fourth quarter of 2020[456](index=456&type=chunk) [Other Information](index=75&type=section&id=Item%209B.%20Other%20Information) This section is not applicable - Not applicable[457](index=457&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=76&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Required information is incorporated by reference from the company's 2021 Definitive Proxy Statement - Information regarding directors, executive officers, and corporate governance is incorporated by reference from the 2021 Proxy Statement[460](index=460&type=chunk) [Executive Compensation](index=76&type=section&id=Item%2011.%20Executive%20Compensation) Required information is incorporated by reference from the company's 2021 Definitive Proxy Statement - Information regarding executive compensation is incorporated by reference from the 2021 Proxy Statement[462](index=462&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters](index=76&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Shareholder%20Matters) Required information is incorporated by reference from the company's 2021 Definitive Proxy Statement - Information regarding security ownership is incorporated by reference from the 2021 Proxy Statement[463](index=463&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=76&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Required information is incorporated by reference from the company's 2021 Definitive Proxy Statement - Information regarding related transactions and director independence is incorporated by reference from the 2021 Proxy Statement[464](index=464&type=chunk) [Principal Accounting Fees and Services](index=76&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Required information is incorporated by reference from the company's 2021 Definitive Proxy Statement - Information regarding principal accounting fees and services is incorporated by reference from the 2021 Proxy Statement[465](index=465&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=77&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section provides an index to the financial statements and lists all exhibits filed with the Form 10-K - This section contains the index to financial statements and a list of all exhibits filed with the report[468](index=468&type=chunk)[469](index=469&type=chunk) [Form 10-K Summary](index=80&type=section&id=Item%2016.%20Form%2010-K%20Summary) This section is not applicable - None[475](index=475&type=chunk) Financial Statements [Consolidated Statements of Operations](index=86&type=section&id=Consolidated%20Statements%20of%20Operations) The company reported a net loss of $134.3 million in 2020, driven by a significant $144.1 million impairment expense Consolidated Statements of Operations Highlights (in thousands) | Line Item | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Revenues** | $529,729 | $527,555 | $466,692 | | **Impairment expense** | $144,120 | $26,148 | $28,661 | | **Operating loss** | ($147,188) | ($49,051) | ($88,055) | | **Net loss attributable to Civeo** | ($134,250) | ($58,491) | ($82,243) | | **Diluted net loss per share** | ($9.64) | ($4.33) | ($10.06) | [Consolidated Balance Sheets](index=88&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to $740.9 million due to impairments, while total liabilities declined from debt repayments Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | **Total current assets** | $119,213 | $131,441 | | **Property, plant and equipment, net** | $486,930 | $590,309 | | **Goodwill** | $8,729 | $110,173 | | **Total assets** | **$740,853** | **$969,912** | | **Total current liabilities** | $116,765 | $110,040 | | **Total long-term debt** | $214,000 | $321,792 | | **Total liabilities** | **$365,496** | **$479,107** | | **Total shareholders' equity** | **$375,357** | **$490,805** | [Consolidated Statements of Cash Flows](index=90&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased significantly to $117.4 million, while investing cash flow decreased sharply Consolidated Cash Flow Summary (in thousands) | Cash Flow Activity | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Net cash provided by operating activities** | $117,361 | $74,481 | $54,391 | | **Net cash used in investing activities** | ($1,774) | ($38,578) | ($181,947) | | **Net cash provided by (used in) financing activities** | ($114,206) | ($44,631) | $109,523 | | **Net change in cash** | $2,824 | ($9,041) | ($20,275) | | **Cash at end of period** | $6,155 | $3,331 | $12,372 | [Notes to Consolidated Financial Statements](index=91&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key disclosures include details on impairment charges, acquisitions, debt amendments, and the 2020 reverse stock split - **Note 4 - Impairment Charges:** In Q1 2020, the company recorded a **$93.6 million goodwill impairment** for its Canadian reporting unit and **$50.5 million in long-lived asset impairments**[587](index=587&type=chunk) - **Note 7 - Acquisitions:** Details the 2019 Action acquisition for $16.9 million and the 2018 Noralta acquisition for $315.6 million[607](index=607&type=chunk)[610](index=610&type=chunk)[615](index=615&type=chunk) - **Note 11 - Debt:** As of Dec 31, 2020, total debt was **$251.1 million** under an amended credit agreement maturing in May 2023[627](index=627&type=chunk)[630](index=630&type=chunk)[631](index=631&type=chunk) - **Note 19 - Preferred Shares:** A beneficial conversion feature on preferred shares issued in the Noralta acquisition resulted in a **one-time deemed dividend of $47.8 million** in 2018[682](index=682&type=chunk)[684](index=684&type=chunk)

Civeo Corp (NYSE:CVEO) Q3 2020 Earnings Conference Call October 28, 2020 11:00 AM ET Company Participants Regan Nielsen - Director, Corporate Development & IR Bradley Dodson - CEO, President & Director Carolyn Stone - SVP, CFO & Treasurer Conference Call Participants Stephen Gengaro - Stifel, Nicolaus & Company Kurt Hallead - RBC Capital Markets Operator Good day, and welcome to the Civeo Corporation Third Quarter 2020 Earnings Call. Today's conference is being recorded. At this time, I would like to turn t ...

Financial Performance - Revenues for the three months ended September 30, 2020, were $142,857 thousand, a decrease of 3.5% compared to $148,163 thousand for the same period in 2019[13] - Operating income for the three months ended September 30, 2020, was $7,090 thousand, compared to an operating loss of $2,876 thousand for the same period in 2019[13] - Net income attributable to Civeo Corporation for the three months ended September 30, 2020, was $6,989 thousand, an increase from $4,996 thousand in the same period of 2019[13] - Comprehensive income attributable to Civeo Corporation for the three months ended September 30, 2020, was $18,092 thousand, compared to a loss of $7,100 thousand in the same period of 2019[16] - For the nine months ended September 30, 2020, total revenues were $396.351 million, a 4.6% increase from $378.866 million in the same period of 2019[15] - Net loss for the nine months ended September 30, 2020, was $131,560 thousand, compared to a loss of $26,832 thousand for the same period in 2019[30] - Net income attributable to Civeo for Q3 2020 was $6.5 million, or $0.03 per diluted share, compared to $4.5 million, or $0.02 per diluted share in Q3 2019[125] Assets and Liabilities - Total assets as of September 30, 2020, were $732,936 thousand, down from $969,912 thousand as of December 31, 2019[21] - Total liabilities as of September 30, 2020, were $379,324 thousand, a decrease from $479,107 thousand as of December 31, 2019[21] - Cash and cash equivalents increased to $6,938 thousand as of September 30, 2020, from $3,331 thousand as of December 31, 2019[21] - As of September 30, 2020, total long-term debt was $269.9 million, down from $356.9 million as of December 31, 2019[68] - Outstanding debt decreased from $359.1 million at December 31, 2019, to $272.5 million at September 30, 2020, after repayments and borrowings[192] Expenses and Cost Management - The company reported a decrease in rental costs to $3,131 thousand for the three months ended September 30, 2020, from $5,072 thousand in the same period of 2019[13] - Selling, general and administrative expenses decreased to $13,462 thousand for the three months ended September 30, 2020, from $14,334 thousand in the same period of 2019[13] - Depreciation and amortization expenses were $72,527 thousand for the nine months ended September 30, 2020, down from $92,974 thousand in 2019[30] - Capital expenditures for the nine months ended September 30, 2020, were $6,244 thousand, a decrease from $25,517 thousand in 2019[30] - The company implemented cost containment initiatives, including a 20% salary reduction for the Board and CEO and a 25% headcount reduction in North America[104] Segment Performance - Accommodation revenues in Canada for the three months ended September 30, 2020, were $49.798 million, down 37.7% from $79.939 million in 2019[41] - Total Australia revenues increased by 35.4% to $64.685 million for the three months ended September 30, 2020, compared to $47.743 million in 2019[41] - U.S. total revenues decreased by 31.5% to $6.387 million for the three months ended September 30, 2020, from $9.349 million in 2019[41] - The Canadian segment reported revenues of $71.8 million in Q3 2020, a decrease of $19.3 million, or 21%, compared to Q3 2019, driven by lower occupancy at oil sands lodges[139] - The Australian segment reported revenues of $64.7 million in Q3 2020, an increase of $16.9 million, or 35%, compared to Q3 2019, largely due to increased activity at Action villages[145] - The U.S. segment reported revenues of $3.0 million in Q3 2020, a decrease of 32% compared to Q3 2019, primarily due to reduced occupancy and drilling activity[149] Impairments and Write-downs - Impairment charges increased to $144,120 thousand in 2020 from $5,546 thousand in 2019, indicating a substantial rise in asset write-downs[30] - In Q1 2020, Civeo recorded a goodwill impairment expense of $93.6 million due to a significant decline in oil prices and market capitalization[55] - The company reported a total goodwill impairment of $93.6 million, resulting in a net goodwill of $8.1 million as of September 30, 2020[83] Cash Flow and Liquidity - Operating cash flows provided were $80,675 thousand for the nine months ended September 30, 2020, significantly up from $33,526 thousand in 2019[30] - The company reported a net cash flow used in financing activities of $79,644 thousand for the nine months ended September 30, 2020, compared to $2,770 thousand in 2019[30] - Total available liquidity as of September 30, 2020, was $85.6 million, down from $124.1 million as of December 31, 2019[186] - The company believes cash on hand and cash flow from operations will be sufficient to meet liquidity needs for the next 12 months, but may need to raise additional capital if plans change[193] Market Conditions and Future Outlook - The company expects continued uncertainty in the market due to the impact of COVID-19 and commodity price volatility, which may delay expansionary and maintenance spending by customers[110] - Capital expenditures for 2020 are expected to be cut by approximately 25% due to the economic disruption caused by COVID-19[104] - The occupancy rate at Canadian oil sands lodges has decreased due to lower oil prices and the economic disruption caused by COVID-19, negatively impacting business[104] Taxation - The company had an outstanding income tax expense of $0.2 million for the three months ended September 30, 2020, representing 2.4% of pretax loss, compared to a tax benefit of $6.6 million for the same period in 2019[77] - For the nine months ended September 30, 2020, the company recorded an income tax benefit of $8.5 million, or 6.1% of pretax loss, compared to a benefit of $14.0 million, or 34.2% of pretax loss, for the same period in 2019[78] Corporate Governance and Controls - The company conducted an evaluation of its disclosure controls and procedures, concluding they were effective as of September 30, 2020[210] - There were no changes in the internal control over financial reporting during the three months ended September 30, 2020, that materially affected the internal control[211]

Financial Data and Key Metrics Changes - Civeo generated revenues of $114.7 million in Q2 2020, with adjusted EBITDA of $28.1 million and free cash flow of $25.1 million [15][9] - The company reduced total debt outstanding by $15 million, bringing the leverage ratio down to 2.34 times as of June 30, 2020, from 2.54 times at the end of Q1 2020 [7][23] - Net income on a GAAP basis was $6.1 million, or $0.03 per diluted share, which included $4.7 million from a warranty claim settlement [15][9] Business Line Data and Key Metrics Changes - Canadian segment revenues were $53 million, down from $78.1 million in Q2 2019, with adjusted EBITDA of $15.3 million, a decrease from $16.3 million [16] - Australian segment revenues increased to $57.1 million from $31 million in Q2 2019, with adjusted EBITDA rising to $18.8 million from $13 million [19] - U.S. segment revenues fell to $4.6 million from $13.1 million in Q2 2019, with adjusted EBITDA declining to a negative $1.4 million from $2.6 million [21] Market Data and Key Metrics Changes - In Australia, metallurgical coal prices stabilized between $100 to $120 per metric ton, with strong customer occupancy levels in the Bowen Basin [11] - Canadian operations saw a decline in billed rooms to 410,000 from 740,000 year-over-year, attributed to reduced customer activity due to oil price declines and COVID-19 [17] - The U.S. segment faced challenges due to a collapse in E&P drilling and completion spending, leading to significant revenue declines [12] Company Strategy and Development Direction - The company aims to drive free cash flow and reduce debt while maintaining a healthy balance sheet and liquidity profile [6][9] - Civeo is focusing on maximizing free cash flow generation, reducing costs, and preserving financial flexibility without compromising service quality [14][31] - The company is tracking potential growth projects in Australia for 2021 while managing costs in the U.S. segment due to ongoing financial distress in the E&P sector [28][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resiliency and diversification of the business model, particularly in Australia and Canada, despite challenges in the U.S. [6][10] - The outlook for the Canadian segment is stabilizing, with expectations of modestly higher occupancy in Q3 due to oil sands turnaround activity [24] - The U.S. segment is expected to remain challenging, with no recovery anticipated in the second half of 2020 [28] Other Important Information - Civeo expects to remain free cash flow positive for the remainder of 2020 and has reinstated full-year guidance for revenues between $476 million to $486 million and adjusted EBITDA between $80 million to $85 million [30][31] - The company reported a total liquidity of approximately $166.2 million as of June 30, 2020, consisting of available credit and cash on hand [23] Q&A Session Summary Question: What are the factors affecting free cash flow generation in the second half of the year? - Management indicated that while they expect to remain free cash flow positive, there may be some working capital outflows due to insurance renewals and property tax payments [35][36] Question: How does the leverage ratio impact discussions with banks regarding future agreements? - Management noted that having a lower leverage ratio is beneficial for discussions with banks, especially with a maturity coming up in November 2021 [37][38] Question: Will the full-year EBITDA guidance include onetime benefits from Q2? - Management confirmed that the full-year EBITDA guidance includes onetime benefits from Q2, with expectations of flat EBITDA from Canada for the rest of the year [40][43] Question: What is the outlook for the Australian segment in the second half? - Management expressed a conservative outlook for Australia, anticipating modestly lower billed rooms in Q3 compared to Q2, while acknowledging strong performance from the Action Catering acquisition [47][48]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |-------------------------------------------------------------|---------------------------------| | | | | transition period from _________________________ to | ________________ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |-------------------------------------------------------------|---------------------------| | | | | transition period from _________________________ to | _________________ ...

Financial Data and Key Metrics Changes - In Q4 2019, Civeo generated revenues of $148.7 million, a 30% increase from $114.5 million in Q4 2018; adjusted EBITDA was $29.9 million compared to $19.9 million in 2018; operating cash flow was $41 million [7][8] - Full year adjusted EBITDA and operating cash flow were both up 41% and 37% respectively compared to full year 2018 [5] - The company reported a net loss of $32 million in Q4 2019, compared to a net loss of $14 million in Q4 2018 [8] Business Segment Data and Key Metrics Changes - Canada segment revenues were $89.7 million in Q4 2019, a slight decrease from $91.1 million in Q3 2019; adjusted EBITDA was $20.9 million, down from $25 million in Q3 2019 [10][11] - Australia segment revenues increased to $48.9 million in Q4 2019 from $47.7 million in Q3 2019; adjusted EBITDA was $15.7 million, down from $17.2 million in Q3 2019 [12] - U.S. segment revenues were $10 million in Q4 2019, up from $9.3 million in Q3 2019; adjusted EBITDA loss was $0.2 million, down from income of $0.3 million in Q3 2019 [13] Market Data and Key Metrics Changes - Canadian oil sands occupancy remains stable, supported by multi-year contracts; occupancy in Canadian lodges totaled 837,000 billed rooms in Q4 2019, down from 876,000 in Q3 2019 [11][14] - In Australia, the average daily rate for villages was USD 72 in Q4 2019, down slightly from USD 73 in Q3 2019 due to a weakened Australian dollar [12] - The macroeconomic environment in the metals and mining complex in Australia remains constructive, with met coal prices forecasted to stay above $150 per metric ton [19] Company Strategy and Development Direction - The company aims to focus on generating free cash flow and reducing debt, with a target of approximately $6 million in free cash flow for 2020 [6][18] - Civeo plans to monitor capital markets for opportunities to term out current debt while maintaining operational excellence and stakeholder engagement [19][22] - The strategic mandate includes high customer service, cost control, and capital discipline to maximize free cash flow and reduce leverage [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in 2020, citing strong LNG activity in Canada and steady turnaround work, despite potential headwinds from U.S. oil and gas capital spending constraints [18][30] - The company anticipates consolidated revenues of $560 million to $576 million and adjusted EBITDA of $100 million to $108 million for the full year 2020 [21] - Management noted that existing infrastructure projects may gain more value as new greenfield projects face difficulties in Canada [40] Other Important Information - Civeo reduced total debt by $34 million in Q4 2019, lowering the leverage ratio to 2.98x from 3.52x as of September 30, 2019 [6][8] - The company had total liquidity of approximately $124.1 million as of December 31, 2019, consisting of $120.8 million available under revolving credit facilities and $3.3 million in cash [13] Q&A Session Summary Question: What are the key factors affecting 2020 expectations? - Management highlighted the importance of turnaround activity in Canada and customer relationships, with a more constructive outlook compared to previous months [26][30] Question: Update on Action acquisition and integration? - The integration of Action is largely complete, with strong performance in the first six months post-acquisition, exceeding initial EBITDA expectations [31][32] Question: What is the outlook for refinancing and credit markets? - Management indicated a better story for refinancing due to improved free cash flow and a lower leverage ratio, with plans to term out some debt [34][37] Question: Any potential catalysts in the Canadian market? - Management noted opportunities for capturing additional occupancy from subcontractors and existing projects, despite some setbacks in new project approvals [40] Question: Pricing dynamics outlook? - Pricing in Canada is stable, while Australia shows upward pressure on pricing due to customer willingness to pay for flexibility, despite some cost pressures [42]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |-----------------------------------------------------------------------------------------------------------|---------------------------------| | transition p ...