UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |-------------------------------------------------------------------------------------------------------------|-----------------------------------------------------| | | | | transi ...

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 ...

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 September 30, 2019 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 Q3 2019, the company generated revenues of $148.2 million, an increase from $120.5 million year-over-year and up sequentially from $122 million in Q2 2019 [14] - Adjusted EBITDA for the quarter was $36.2 million, up from $22.4 million in Q3 2018 and $26.5 million sequentially [14] - The leverage ratio improved from 4.26 times as of June 30, 2019, to 3.52 times as of September 30, 2019 [8][27] Business Segment Performance Changes - Canadian segment revenues were $91.1 million, up from $78.1 million in Q2 2019, with adjusted EBITDA increasing to $25 million from $16.3 million [19] - Australian segment revenues rose to $47.7 million from $31 million in Q2 2019, with adjusted EBITDA increasing to $17.2 million from $13 million [22] - U.S. segment revenues declined to $9.3 million from $13.1 million in Q2 2019, with adjusted EBITDA dropping to $0.3 million from $2.6 million [25] Market Data and Key Metrics Changes - The Canadian segment saw billed rooms increase by 18% sequentially, driven by maintenance and turnaround activities [15] - In Australia, billed rooms increased from 416,000 in Q2 to 455,000 in Q3, reflecting increased customer activity [24] - The U.S. experienced a 10% sequential decline in rig count, impacting revenues and EBITDA negatively [25] Company Strategy and Industry Competition - The company is focusing on generating free cash flow and reducing leverage while monitoring capital markets for debt refinancing opportunities [31] - Recent contract extensions with major coal producers in Australia indicate strong customer relationships and increased mining activity [12] - The integration of the Action Catering acquisition is progressing well, enhancing the company's presence in the iron ore industry [41][42] Management's Comments on Operating Environment and Future Outlook - Management noted a weakening U.S. market but expressed optimism about continued strong performance in Canada and Australia [9][39] - The company anticipates a decline in billed rooms during the holiday season but expects higher occupancy compared to Q4 2018 due to contributions from the Sitka Lodge [33] - For Q4 2019, the company expects revenues of $128 million to $133 million and adjusted EBITDA of $19.5 million to $23.5 million [37] Other Important Information - Capital expenditures in Q3 were $4.3 million, down from $11.5 million in Q2, as the Sitka Lodge expansion was completed [26] - Total debt outstanding as of September 30 was $393.5 million, a decrease of $11.8 million since June 30 [26] - The company amended and extended its credit agreement, providing financial flexibility and extending maturity dates [28][29] Q&A Session Summary Question: Can you provide more details on the Action deal in Australia? - Management expressed excitement about the Action Catering acquisition, noting it is performing better than expected and integration is progressing well [41][42] Question: What are the expectations for free cash flow in 2020? - Management indicated that with disciplined capital expenditures, free cash flow generation is expected to increase significantly in 2020 [46][49] Question: Can you clarify the amendment to your credit facility? - Management confirmed that the credit facility was amended and extended, with a new lender added, increasing borrowing capacity [51][52]