☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Address of principal executive offices) (713) 510-2400 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Yes ☒ No ☐ Non-Accelerated Filer ☐ Smaller Reporting Company ☐ Yes ☐ No ☒ CIVEO CORPORATION 3 ITEM 1. Financial St ...

Civeo Corporation (NYSE:CVEO) Q1 2023 Earnings Conference Call April 28, 2023 11:00 AM ET Company Participants Regan Nielsen - Senior Director, Corporate Development & IR Bradley Dodson - President and CEO Carolyn Stone - SVP and CFO Conference Call Participants Steve Ferazani - Sidoti & Company Stephen Gengaro - Stifel Dave Storms - Stonegate Operator Greetings and welcome to the Civeo Corporation First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief ...

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 March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________________ to _________________________ Commission file number: 001-36246 Civeo Corporation (Exact name of registrant as specified in its chart ...

Financial Data and Key Metrics Changes - For the full-year 2022, Civeo generated $83 million in free cash flow and made debt repayments of $34 million [4] - Total revenues in the fourth quarter were $162.2 million, with a GAAP net loss of $13 million or $1.31 loss per diluted share [69] - Adjusted EBITDA for the fourth quarter was $15.1 million, a decrease compared to the same period in 2021 [69] - Total debt outstanding as of December 31, 2022, was $132 million, reflecting a $6 million increase from September 30, 2022, but a $43 million decrease from year-end 2021 [13] Business Line Data and Key Metrics Changes - Canadian segment revenue was $88 million in Q4 2022, down from $92.2 million in Q4 2021, with adjusted EBITDA decreasing to $11.8 million from $23.1 million [11] - Australian segment revenue increased to $73.1 million in Q4 2022 from $62.3 million in Q4 2021, but adjusted EBITDA decreased to $13.1 million from $13.6 million [12] Market Data and Key Metrics Changes - Billed rooms in Canadian lodges totaled 622,000, up 6% year-over-year, but the average daily rate decreased to $93 from $106 due to currency fluctuations [71] - In Australia, billed rooms increased to 519,000 from 465,000 year-over-year, with the average daily rate decreasing to $73 from $77 [91] Company Strategy and Development Direction - The company aims to maximize free cash flow while returning capital to shareholders and reducing debt [15] - Civeo is focused on expanding its customer base and geographic footprint to reduce volatility in free cash flow generation [84] - The company is prioritizing safety and well-being, managing costs according to occupancy outlooks, and enhancing hospitality offerings [96] Management's Comments on Operating Environment and Future Outlook - Management noted that inflationary pressures and labor costs are expected to impact margins, particularly in the Integrated Services business [17][108] - The company anticipates a decline in mobile camp activity due to the completion of construction projects, which will negatively affect revenues [32][94] - There is uncertainty regarding customer room demand for the second half of 2023, which could impact guidance [95] Other Important Information - Civeo repurchased 1.5 million common shares for $45 million, including 40% of outstanding preferred shares [83] - The company completed the divestiture of its U.S. offshore business, retaining only a few lodges in North Dakota and Louisiana [87] Q&A Session Summary Question: What is the leverage ratio at which the company would stop paying down debt? - Management indicated that a leverage ratio of 1x to 1.25x is a good base, allowing flexibility for investments or returning capital to shareholders [21] Question: How does the company evaluate potential M&A opportunities? - The company primarily sources opportunities internally, focusing on assets and service companies they know well [119] Question: What is the expected impact of the McClelland Lake Lodge shutdown on revenue? - The McClelland Lake Lodge generated approximately CAD60 million in 2022 revenues, and its shutdown will significantly impact future revenues [33][100]

During the year ended December 31, 2022, revenues from our lodges and villages represented over 62% of our consolidated revenues. Our contract terms generally provide for a rental rate for a reserved room and an occupied room rate that compensates us for hospitality services, including meals, housekeeping, utilities and maintenance for workers staying in the lodges and villages. In most multiyear contracts, our rates typically have annual escalation provisions to cover expected increases in labor and consum ...

Financial Data and Key Metrics Changes - Civeo Corporation reported total revenues of $184.2 million for Q3 2022, with a GAAP net income of $5.2 million, or $0.32 per diluted share, and adjusted EBITDA of $35 million [14][6] - Year-over-year revenues increased by 19%, and adjusted EBITDA rose by 34%, driven by increased activity across all three geographic segments [6][7] - Free cash flow generated in the quarter was $38.6 million, leading to a reduction in net leverage to below 1.0 times [7][8] Business Line Data and Key Metrics Changes - In Canada, revenues increased to $103 million from $84.1 million year-over-year, with adjusted EBITDA rising to $25.6 million from $19.8 million [16] - Australian segment revenues were $73.8 million, up from $65.1 million, with adjusted EBITDA increasing to $16.9 million from $14.8 million [19] - U.S. revenues rose to $7.4 million from $5.9 million, with adjusted EBITDA loss improving to $33,000 from a loss of $544,000 [21] Market Data and Key Metrics Changes - Canadian billed rooms totaled 731,000, up 19% year-over-year, while Australian billed rooms were 525,000, up 7% from the previous year [18][20] - The Canadian dollar's weakness against the U.S. dollar negatively impacted revenues and adjusted EBITDA by $3.7 million and $0.9 million, respectively [17] - The Australian dollar's weakness also affected results, decreasing revenue and adjusted EBITDA by $5.5 million and $1.3 million, respectively [19] Company Strategy and Development Direction - The company is focused on deleveraging and has reduced net leverage to 0.9 times, providing flexibility to weather market volatility and evaluate capital deployment opportunities [8][22] - Civeo plans to prioritize safety, manage costs according to market outlook, enhance hospitality offerings, and seek revenue diversification through organic growth and M&A opportunities [34][33] - The company expects Canadian mobile camp activity to decline as pipeline construction winds down, impacting profitability [26][31] Management's Comments on Operating Environment and Future Outlook - Management noted that customer capital spending drives occupancy, and while commodity prices remain constructive, customers are focused on cash flow generation and capital discipline [30][49] - The outlook for 2023 indicates flat occupancy in Canadian lodges with modest upside, while Australia may see a modest increase in occupancy due to expansionary activities [31][32] - Management expressed cautious optimism regarding the Australian integrated services business, despite expecting margin compression due to labor shortages and inflation [32][30] Other Important Information - The company has renewed its share repurchase authorization to buy back up to 5% of its total common shares outstanding over the next 12 months [9] - Capital expenditures for Q3 2022 were $8.8 million, primarily related to maintenance spending [22] Q&A Session Summary Question: Margin degradation in the fourth quarter - Management indicated that the biggest margin degradation would be in Canada due to significant downturns in occupancy and increased utility costs [37] Question: Timing of demobilization costs - Management stated it is too early to determine when demobilization costs will occur in 2023, but they expect continued activity into the year [38] Question: Managing cost pressures - Management discussed leveraging multiyear contracts with annual inflation adjustments and operational efficiencies to manage cost pressures [39][40] Question: Revenue decline in mobile camps - Management noted that the decline in mobile camp revenue is due to holiday downtime and overall oil sands activity downturn in Q4 [44] Question: Capital allocation and growth opportunities - Management emphasized a balanced approach to capital allocation, focusing on stock buybacks and growth opportunities while maintaining a strong balance sheet [52]

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 September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |------------------------------------------------------------------------------|------------------------------------------| | | | | For the transition period from ________ ...

Financial Performance - Civeo Corporation reported revenues of $184,954,000 for the three months ended June 30, 2022, representing a 20% increase from $154,176,000 in the same period of 2021[10]. - The company achieved a net income of $10,230,000 for the three months ended June 30, 2022, compared to a net income of $10,000 in the same period of 2021[13]. - Operating income for the three months ended June 30, 2022, was $14,242,000, significantly up from $2,129,000 in the prior year[10]. - Total revenues for the three months ended June 30, 2022, were $184.954 million, a 20% increase from $154.176 million in the same period of 2021[82]. - For the six months ended June 30, 2022, total revenues reached $350.632 million, up from $279.606 million in the same period of 2021, marking a 25.5% increase[82]. - Net income for the six months ended June 30, 2022, was $12,138 thousand, compared to a loss of $9,415 thousand for the same period in 2021[23]. - Net income attributable to Civeo for the six months ended June 30, 2022, was $10.0 million, or $0.60 per diluted share, compared to a net loss of $10.4 million, or $0.73 per diluted share, in the same period in 2021[142]. Assets and Liabilities - Civeo's total current assets increased to $169,724,000 as of June 30, 2022, compared to $157,193,000 at the end of 2021[15]. - The company reported total liabilities of $273,877,000 as of June 30, 2022, down from $309,623,000 at the end of 2021[15]. - Civeo's total assets decreased to $637,397,000 as of June 30, 2022, from $672,734,000 at the end of 2021[15]. - Total accounts receivable as of June 30, 2022, was $135.165 million, an increase from $115.220 million as of December 31, 2021[42]. - Total accrued liabilities as of June 30, 2022, were $28.289 million, a decrease from $33.564 million as of December 31, 2021[45]. - Outstanding debt as of June 30, 2022, was $154.6 million, down from $175.1 million at the end of 2021[172]. Cash Flow and Capital Expenditures - Net cash flows provided by operating activities for the six months ended June 30, 2022, were $23,631 thousand, down from $29,350 thousand in 2021[23]. - Capital expenditures for the six months ended June 30, 2022, totaled $8,647 thousand, compared to $6,530 thousand in 2021[23]. - Capital expenditures for 2022 are expected to be between $24 million and $29 million, significantly higher than $15.6 million in 2021[113]. - Total cash provided by operations during the six months ended June 30, 2022, was $23.6 million, down from $29.4 million in the same period of 2021[167]. Revenue Segmentation - The company operates in three principal reportable business segments: Canada, Australia, and the U.S., providing hospitality services to the natural resources industry[26]. - Approximately 64% of the company's revenue in Q2 2022 was generated from lodges in Canada and villages in Australia[88]. - Accommodation revenues in Canada for the three months ended June 30, 2022, were $79.431 million, up 13.8% from $69.759 million in the same period of 2021[33]. - The Canadian segment reported a revenue increase of $59.8 million, or 41%, compared to the same period in 2021, despite a $4.5 million decrease due to currency exchange rate fluctuations[154]. - The Australian segment's revenues increased by $7.7 million, or 6%, although a 7% decline in the Australian dollar relative to the U.S. dollar resulted in a $9.5 million decrease in revenues[159]. - The U.S. segment's revenues rose by $3.5 million, or 33%, driven by increased U.S. drilling activity[163]. Expenses and Profitability - Consolidated cost of sales and services rose by $22.1 million, or 20%, in Q2 2022, totaling $130.05 million[117]. - Selling, general and administrative expenses increased by $3.0 million, or 20%, in Q2 2022, reaching $17.68 million[120]. - Gross margin as a percentage of revenues improved from 24.8% in the first half of 2021 to 26.7% in the first half of 2022[156]. - The total cost of sales and services for the six months ended June 30, 2022, increased by $48.1 million, or 23%, compared to the same period in 2021[143]. Market Conditions and Outlook - Global oil prices increased to above $100 per barrel due to improved demand and reduced supply, exacerbated by the Russia-Ukraine conflict[94]. - The company provided an optimistic outlook, projecting a revenue growth of 10-15% for the next quarter, driven by increased demand in the oil and gas industry[201]. - The company is exploring potential acquisitions to enhance its service offerings, with a focus on companies that complement its existing operations[201]. - The company anticipates a stable demand environment, with a forecasted EBITDA margin of 30% for the upcoming fiscal year[201]. Shareholder Returns and Capital Management - During the six months ended June 30, 2022, Civeo repurchased 22,911 common shares at a weighted average price of $23.65 per share, totaling approximately $0.5 million[68]. - The company has authorized a common share repurchase program to repurchase up to 5.0% of its total common shares, approximately 715,000 shares, over a twelve-month period[67]. - Future dividends will depend on various factors, including financial condition and covenants associated with debt obligations[178]. Risk Management - The company is managing inflation risk through negotiated service scope changes and contractual protections due to increasing inflationary pressures impacting labor and food costs[93]. - A hypothetical 10% adverse change in the value of the Canadian dollar and Australian dollar would result in translation adjustments of approximately $24 million and $23 million, respectively[184].

Financial Data and Key Metrics Changes - Civeo Corporation reported a year-over-year revenue growth of 32% and adjusted EBITDA growth of 57% for Q1 2022, driven by increased occupancy in Canadian lodges and Australian villages, along with heightened Canadian mobile camp activity [6][12] - Total revenues for Q1 2022 were $165.7 million, with GAAP net income of $0.9 million or $0.06 per diluted share [12] - Adjusted EBITDA for Q1 2022 was $25.6 million, with operating cash flow of $2 million and free cash flow of $700,000 [12] Business Line Data and Key Metrics Changes - Canadian segment revenues increased to $96 million from $61.9 million year-over-year, with adjusted EBITDA rising to $17.2 million from $10.8 million [13] - Australian segment revenues were $63.5 million, up from $59.6 million, with adjusted EBITDA increasing to $15.4 million from $12.8 million [14] - US segment revenues rose to $6.2 million from $3.9 million, with adjusted EBITDA improving to breakeven from negative $1.2 million [16] Market Data and Key Metrics Changes - Canadian lodges experienced a 32% year-over-year increase in billed rooms, totaling 636,000 [13] - Australian billed rooms increased by 12% year-over-year to 474,000, with average daily rates remaining consistent at $79 [14][15] - The US market benefited from increased drilling and completion activity, contributing to revenue growth [10] Company Strategy and Development Direction - The company is focused on deleveraging its balance sheet while also returning capital to shareholders through a share repurchase program [8] - Civeo aims to enhance its hospitality services, maintain cost structures in line with occupancy outlooks, and seek opportunities for revenue diversification through organic growth and M&A [21] - The company raised its full year 2022 revenue guidance to a range of $660 million to $675 million and adjusted EBITDA guidance to $95 million to $102 million [18] Management's Comments on Operating Environment and Future Outlook - Management noted encouraging customer conversations regarding increased maintenance and turnaround spending, particularly in Canada [6][19] - The company highlighted risks related to labor availability in Canada that could impact turnaround execution [19] - In Australia, management acknowledged ongoing challenges due to COVID-related labor costs and the China-Australia trade dispute, but expressed optimism about gradual improvements [20] Other Important Information - A stock purchase agreement was announced involving one of the largest shareholders, which will limit the availability of common shares for sale until at least April 2023 [7] - The company’s total debt outstanding as of March 31, 2022, was $177.9 million, with a net leverage ratio of 1.4x [16][17] Q&A Session Summary Question: Insights on Australian business occupancy and growth - Management indicated that the increase in occupancy is primarily due to maintenance activities, with some early signs of growth opportunities [24] Question: Average Daily Rate (ADR) evolution - Management confirmed that the mix of non-contracted rooms has influenced ADR, with an upward bias on pricing expected in both Canada and Australia [26] Question: Updates on LNG projects in Western Canada - Management remains cautiously optimistic about potential expansions, particularly the LNG Canada project, but no updates on timing were provided [29] Question: Balance sheet and free cash flow uses - Management reiterated the focus on debt repayment and returning capital to shareholders, with plans to explore growth opportunities as conditions improve [30] Question: Share repurchase program renewal - Management indicated that discussions regarding the renewal of the share repurchase program would occur, with a strong likelihood of continuation [33] Question: Demobilization of Canadian mobile camps - Management confirmed that current guidance assumes demobilization will occur in Q4 2022, based on customer conversations [34] Question: Working capital and capital expenditures - Management acknowledged that higher revenues would likely lead to increased working capital needs, with some capital expenditures already built into guidance [38]

Financial Performance - Civeo Corporation reported revenues of $165,678,000 for the three months ended March 31, 2022, a 32% increase from $125,430,000 in the same period of 2021[9]. - The company achieved a net income of $1,908,000 for Q1 2022, compared to a net loss of $9,425,000 in Q1 2021, marking a significant turnaround[12]. - Operating income for the quarter was $4,237,000, compared to an operating loss of $9,901,000 in the prior year, indicating improved operational efficiency[9]. - Comprehensive income for the quarter was $9,920,000, compared to a comprehensive loss of $11,052,000 in the same quarter of the previous year[12]. - Total revenues for Q1 2022 were $165.7 million, an increase from $125.4 million in Q1 2021, with Canada contributing $95.9 million and Australia $63.5 million[68]. - Net income attributable to Civeo was $0.9 million, or $0.06 per diluted share, compared to a net loss of $10.0 million, or $0.70 per diluted share in Q1 2021[1]. - Operating income increased by $14.1 million, or 143%, in Q1 2022, primarily due to higher activity levels in Canada and Australia[6]. Assets and Liabilities - Civeo's total current assets increased to $161,847,000 as of March 31, 2022, up from $157,193,000 at the end of 2021[15]. - The company reported total assets of $673,094,000 as of March 31, 2022, slightly up from $672,734,000 at the end of 2021[15]. - Civeo's total liabilities decreased to $300,123,000 as of March 31, 2022, down from $309,623,000 at the end of 2021, reflecting improved financial health[15]. - Total debt as of March 31, 2022, was $175,905 thousand, slightly up from $173,178 thousand as of December 31, 2021[48]. - Long-term debt, less current maturities, increased to $145,037 thousand as of March 31, 2022, from $142,602 thousand as of December 31, 2021[48]. - As of March 31, 2022, total available liquidity was $83.1 million, down from $92.8 million as of December 31, 2021[126]. Revenue Breakdown - Accommodation revenues in Canada for the three months ended March 31, 2022, were $67,194,000, up from $46,530,000 in 2021, reflecting a growth of approximately 44%[32]. - Total Australia revenues for the three months ended March 31, 2022, were $63,529,000, an increase from $59,637,000 in the same period of 2021[32]. - The U.S. segment reported revenues of $6.2 million in Q1 2022, compared to $3.9 million in Q1 2021, indicating growth in this market[68]. - Canadian segment revenues increased by $34.1 million, or 55%, driven by higher billed rooms and increased mobile asset activity[13]. - Australian segment revenues increased by $3.9 million, or 7%, despite a $4.2 million decrease due to a weaker Australian dollar[118]. Cash Flow and Expenditures - Total cash flows provided by operating activities for the three months ended March 31, 2022, were $1,953,000, down from $12,817,000 in the same period of 2021[22]. - Capital expenditures for the three months ended March 31, 2022, were $3,592,000, compared to $3,372,000 in the same period of 2021[22]. - The company anticipates capital expenditures in 2022 to be influenced by macroeconomic conditions and commodity price volatility, particularly in the natural resources sector[74]. - Capital expenditures for 2022 are expected to be in the range of $20 million to $25 million, compared to $15.6 million in 2021, indicating a planned increase[98]. Shareholder Information - The company repurchased 500 common shares at a weighted average price of $18.47 per share, totaling approximately $9.2 thousand during Q1 2022[58]. - The company authorized a share repurchase program to buy back up to 5.0% of its total common shares, equating to 715,814 shares, over a twelve-month period[133]. - The company repurchased a total of 46,577 common shares during the three months ended March 31, 2022, at an average price of $21.93 per share[151]. Legal and Compliance - The company is involved in various pending legal claims, but believes that any ultimate liability will not have a material adverse effect on its financial position[148]. - Investors are advised to refer to the "Risk Factors" section in the Annual Report for additional information on potential risks[149]. - The company has filed various agreements as exhibits to its Quarterly Report to provide investors with information regarding their terms[156]. - The certifications of the Chief Executive Officer and Chief Financial Officer were filed in compliance with the Securities Exchange Act of 1934[153][154]. Market Conditions - The ongoing impact of COVID-19 has led to increased staff costs due to labor shortages in Australia, affecting operational efficiency and cost management[78]. - WCS prices in Q1 2022 averaged $82.04 per barrel, up from $46.28 in Q1 2021, indicating a significant year-over-year increase of 77.1%[83]. - The U.S. oil rig count increased from 267 at the end of 2020 to 531 at the end of Q1 2022, showing a recovery in drilling activity[94]. - The average U.S. to Australian dollar exchange rate was $0.724 in Q1 2022, down 6.3% from $0.773 in Q1 2021, impacting financial results[96].