(Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 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 ...

Financial Data and Key Metrics Changes - Total revenues for Q2 2023 were $178.8 million, with GAAP net income of $4.5 million or $0.30 per diluted share [6][60] - Adjusted EBITDA for the quarter was $31.6 million, operating cash flow was $19.4 million, and free cash flow was $12.9 million [6] - On a constant currency basis, revenues decreased by 8%, primarily due to a decline in mobile camp activity and lower billed rooms in Canadian lodges [61] Business Line Data and Key Metrics Changes - Revenues from the Canadian segment were $95.5 million, down from $109 million in Q2 2022, with billed rooms totaling 724,000, down from 771,000 [21][22] - For Australia, revenues increased to $82.5 million from $67.8 million year-over-year, with adjusted EBITDA rising to $19.6 million from $15.5 million [77] - Integrated services revenues were up 33%, driven by new contracts and increased occupancy in owned villages [3][64] Market Data and Key Metrics Changes - Australian billed rooms increased by 16% year-over-year, reaching 588,000 [7] - The average daily rate for Australian villages in U.S. dollars was $75, down from $77 in Q2 2022, primarily due to a weakened Australian dollar [7] - Canadian mobile camp activity is expected to wind down in the second half of the year, contributing to lower lodge occupancy [58][60] Company Strategy and Development Direction - The company is focused on enhancing hospitality offerings, managing costs, and maximizing free cash flow while returning capital to shareholders [65] - An inflation mitigation plan is in place, with expected benefits to be realized in the second half of 2023 [73][74] - The company is in active negotiations to sell the McClelland Lake Lodge assets, with minimal expected net demobilization costs [4][41] Management's Comments on Operating Environment and Future Outlook - Management noted that inflation will remain a focus, despite strides made in mitigating its impact [5] - The company expects to see a material improvement in integrated services margins in the second half of the year [14] - There is cautious optimism regarding labor costs and recruitment efforts, with ongoing challenges in finding labor impacting operations [90] Other Important Information - The company repurchased approximately 212,000 shares for a total cost of about $4.2 million during the quarter [78] - Capital expenditures for Q2 2023 were $6.9 million, up from $5.1 million in the same period last year, primarily for maintenance and activating additional rooms [62] Q&A Session Summary Question: What is the outlook for capital allocation if assets are sold? - Management indicated that comments on capital allocation would remain consistent regardless of asset sales [83] Question: How does the seasonal pattern of EBITDA generation look this year? - The company expects to generate the bulk of EBITDA in Q2 and Q3, similar to historical patterns [84] Question: What is the status of Australian margins and contract rollovers? - Management noted that while margins are expected to improve, the fourth quarter margins may still be lower than the third [85] Question: Are there any updates on labor costs and recruitment efforts? - Management acknowledged ongoing challenges with temporary labor and is cautiously optimistic about contract relief [90] Question: Is there any movement in M&A opportunities in the Australian market? - The company is seeing some asset transactions available in Canada, but nothing significant in Australia at this time [51]

Part I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the three and six months ended June 30, 2023, and 2022, including statements of operations, comprehensive income, balance sheets, changes in shareholders' equity, and cash flows, with detailed notes [Unaudited Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) This section details the company's revenues, costs, and expenses, leading to operating income and net income (loss), showing a decrease in Q2 2023 revenues and a net loss for the six-month period compared to the prior year Consolidated Statements of Operations (in Thousands, Except Per Share Amounts) | Financial Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $178,843 | $184,954 | $346,434 | $350,632 | | **Operating Income** | $10,172 | $14,242 | $6,268 | $18,479 | | **Net Income (Loss)** | $4,167 | $10,230 | $(2,144) | $12,138 | | **Diluted Net Income (Loss) Per Share** | $0.30 | $0.54 | $(0.13) | $0.60 | [Unaudited Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This section reconciles net income (loss) to comprehensive income (loss), primarily showing the impact of foreign currency translation adjustments, with Q2 2023 seeing a significant positive swing due to favorable currency adjustments Consolidated Statements of Comprehensive Income (Loss) (in Thousands) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net Income (Loss)** | $4,167 | $10,230 | $(2,144) | $12,138 | | **Foreign Currency Translation Adjustment** | $2,081 | $(20,024) | $(95) | $(12,012) | | **Comprehensive Income (Loss)** | $6,248 | $(9,794) | $(2,239) | $126 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) This section presents the company's financial position as of June 30, 2023, compared to December 31, 2022, showing a slight decrease in total assets and shareholders' equity while total liabilities remained stable Consolidated Balance Sheet Highlights (in Thousands) | Account | June 30, 2023 (Unaudited) | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $175,878 | $153,549 | | **Total Assets** | $558,962 | $566,184 | | **Total Current Liabilities** | $102,682 | $128,257 | | **Total Liabilities** | $263,629 | $262,483 | | **Total Shareholders' Equity** | $295,333 | $303,701 | [Unaudited Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) This section details the changes in shareholders' equity accounts for the three and six months ended June 30, 2023, primarily driven by a net loss, common share repurchases, and share-based compensation, resulting in a decrease in total shareholders' equity Changes in Shareholders' Equity (in Thousands) | Description | Six Months Ended June 30, 2023 | | :--- | :--- | | **Balance, December 31, 2022** | $303,701 | | Net income (loss) | $(2,144) | | Currency translation adjustment | $(95) | | Common shares repurchased | $(7,970) | | Share-based compensation | $2,044 | | **Balance, June 30, 2023** | $295,333 | [Unaudited Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines cash movements from operating, investing, and financing activities for the six months ended June 30, 2023, resulting in a net increase in cash and cash equivalents for the period Consolidated Statements of Cash Flows (in Thousands) | Cash Flow Activity | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | **Net cash flows provided by operating activities** | $19,761 | $23,631 | | **Net cash flows used in investing activities** | $(8,998) | $(5,155) | | **Net cash flows used in financing activities** | $(6,919) | $(19,894) | | **Net change in cash and cash equivalents** | $3,467 | $(1,500) | [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed explanations of accounting policies and specific financial statement items, noting changes in reportable segments and future revenue recognition - The company operates in two principal reportable business segments: Canada and Australia, with the U.S. operating segment no longer meeting quantitative thresholds as of Q1 2023[91](index=91&type=chunk)[236](index=236&type=chunk) Disaggregated Revenue by Segment (in Thousands) | Segment | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | **Canada** | $184,923 | $204,975 | | **Australia** | $159,533 | $131,349 | | **Other** | $1,978 | $14,308 | | **Total Revenues** | $346,434 | $350,632 | - As of June 30, 2023, the company expects to recognize **$670.5 million** in revenue from remaining performance obligations on contracts greater than one year[44](index=44&type=chunk)[66](index=66&type=chunk) - The company repurchased **380,900 common shares** for **$8.0 million** during the six months ended June 30, 2023[111](index=111&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and operational results, emphasizing the influence of commodity prices, inflation, and foreign exchange rates, while maintaining sufficient liquidity for future needs [Overview and Macroeconomic Environment](index=19&type=section&id=Overview%20and%20Macroeconomic%20Environment) The company's business is highly sensitive to commodity prices, particularly oil, metallurgical coal, LNG, and iron ore, facing inflationary cost pressures and the non-renewal of a significant Canadian contract, while Australian operations show strong growth - Demand for services is largely sensitive to expected commodity prices (oil, met coal, LNG, iron ore) and their impact on customer spending[96](index=96&type=chunk) - Inflation and supply chain issues have negatively impacted and are expected to continue to impact labor, food, and fuel costs[98](index=98&type=chunk) - The land lease and hospitality contract for McClelland Lake Lodge, which generated **~C$60 million** in 2022 revenue, expired in mid-2023, with the company actively marketing these assets for new opportunities[101](index=101&type=chunk)[147](index=147&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) This section compares operating results for the three and six-month periods ending June 30, 2023, and 2022, showing a decrease in consolidated revenues and operating income primarily due to reduced Canadian mobile asset activity and inflationary pressures, partially offset by Australian segment growth Q2 2023 vs Q2 2022 Results (in Thousands) | Metric | Q2 2023 | Q2 2022 | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $178,843 | $184,954 | $(6,111) | | **Operating Income** | $10,172 | $14,242 | $(4,070) | | **Net Income** | $4,463 | $9,568 | $(5,105) | H1 2023 vs H1 2022 Results (in Thousands) | Metric | H1 2023 | H1 2022 | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $346,434 | $350,632 | $(4,198) | | **Operating Income** | $6,268 | $18,479 | $(12,211) | | **Net (Loss) Income** | $(1,890) | $10,978 | $(12,868) | - Canadian segment revenue decreased **12%** in Q2 2023, driven by reduced mobile asset activity from pipeline projects and lower lodge occupancy[161](index=161&type=chunk) - Australian segment revenue increased **22%** in Q2 2023, driven by increased activity at owned villages and integrated services contracts[141](index=141&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2023, the company had total available liquidity of **$89.0 million**, consisting of cash and unused credit facility availability, with management asserting sufficiency to meet anticipated needs for the next 12 months Available Liquidity (in Thousands) | Component | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Unused availability | $77,611 | $96,130 | | Cash and cash equivalents | $11,421 | $7,954 | | **Total available liquidity** | **$89,032** | **$104,084** | - Expected capital expenditures for 2023 are in the range of **$35 million to $40 million**[178](index=178&type=chunk)[152](index=152&type=chunk) - Management believes that cash on hand and cash flow from operations will be sufficient to meet anticipated liquidity needs for the next 12 months[207](index=207&type=chunk) [Critical Accounting Policies](index=33&type=section&id=Critical%20Accounting%20Policies) The company confirms that there have been no material changes to the critical accounting policies and estimates as disclosed in its Annual Report on Form 10-K for the year ended December 31, 2022 - There have been no material changes to the judgments, assumptions, and estimates upon which the company's critical accounting estimates are based[186](index=186&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies its principal market risks as exposure to changes in interest rates and foreign currency exchange rates, with hypothetical adverse movements potentially impacting interest expense and comprehensive loss - A **100 basis point increase** in floating interest rates would increase consolidated annual interest expense by approximately **$1.4 million**[214](index=214&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 **$19 million** and **$22 million**, respectively[215](index=215&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Based on an evaluation conducted by management, including the CEO and CFO, the company's disclosure controls and procedures were deemed effective as of June 30, 2023, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2023[216](index=216&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[225](index=225&type=chunk) Part II - OTHER INFORMATION [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various pending claims and lawsuits arising from its commercial operations, but management believes the ultimate liability will not have a material adverse effect on its financial position, results of operations, or liquidity - The company is party to various pending claims and lawsuits but believes the ultimate liability will not have a material adverse effect on its financial position, operations, or liquidity[218](index=218&type=chunk)[60](index=60&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) This section refers readers to the detailed discussion of risk factors included in the company's Annual Report on Form 10-K for the year ended December 31, 2022, indicating no material updates in this quarterly report - For information about risk factors, the report refers to the section entitled "Risk Factors" in the Annual Report on Form 10-K for the year ended December 31, 2022[227](index=227&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common share repurchase activity for the second quarter of 2023, under which **212,222 common shares** were repurchased for approximately **$4.2 million** Common Share Purchases (Q2 2023) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2023 | — | — | | May 2023 | 97,420 | $20.11 | | June 2023 | 114,802 | $19.45 | | **Total** | **212,222** | **$19.75** | [Item 5. Other Information](index=35&type=section&id=Item%205.%20Other%20Information) The company reported no other material information for disclosure under this item for the period - None[229](index=229&type=chunk) [Item 6. Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications from the Chief Executive Officer and Chief Financial Officer pursuant to SEC rules, as well as Inline XBRL documents - Exhibits filed with this report include CEO and CFO certifications (31.1, 31.2, 32.1, 32.2) and Inline XBRL documents[38](index=38&type=chunk)

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].