Civeo(CVEO)

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Civeo(CVEO) - 2020 Q2 - Earnings Call Transcript
2020-07-30 05:04
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]
Civeo(CVEO) - 2020 Q2 - Quarterly Report
2020-07-29 20:12
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 | ________________ ...
Civeo(CVEO) - 2020 Q1 - Quarterly Report
2020-05-07 20:06
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 | _________________ ...
Civeo(CVEO) - 2019 Q4 - Earnings Call Transcript
2020-02-28 03:29
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]
Civeo(CVEO) - 2019 Q4 - Annual Report
2020-02-27 21:33
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 ...
Civeo(CVEO) - 2019 Q3 - Quarterly Report
2019-10-29 17:18
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 | _____________ ...
Civeo(CVEO) - 2019 Q3 - Earnings Call Transcript
2019-10-25 20:46
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]
Civeo(CVEO) - 2019 Q2 - Quarterly Report
2019-07-29 18:30
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 June 30, 2019 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 ch ...
Civeo(CVEO) - 2019 Q2 - Earnings Call Transcript
2019-07-29 18:14
Financial Data and Key Metrics Changes - In Q2 2019, the company reported revenues of $122 million, a decrease from $130 million year-over-year but an increase from $109 million in Q1 2019 [11] - Adjusted EBITDA for the quarter was $26.5 million, up from $24.5 million year-over-year and significantly higher than $16 million in Q1 2019 [11] - The company experienced a net loss of $15.3 million or $0.09 per diluted share [17] Business Segment Performance - **Canada Segment**: Revenue increased to $78.1 million from $66.8 million in Q1 2019, with adjusted EBITDA rising to $16.3 million from $12.2 million [18] - **Australia Segment**: Revenue rose to $31 million from $28.4 million in Q1 2019, with adjusted EBITDA increasing to $13 million from $9.9 million [20] - **U.S. Segment**: Revenue slightly declined to $13.1 million from $13.4 million in Q1 2019, with adjusted EBITDA decreasing to $2.6 million from $2.8 million [21] Market Data and Key Metrics Changes - Canadian market conditions were affected by limited takeaway capacity and oil price volatility, but there was a significant increase in LNG-related occupancy in British Columbia [12][13] - In Australia, occupancy improved due to higher met coal prices and increased customer activity in the Bowen Basin [14] - The U.S. segment showed steady performance despite a slight decline in drilling and completion activity [16] Company Strategy and Industry Competition - The company completed the expansion of the Sitka Lodge to support the LNG Canada project, which is expected to enhance EBITDA in the second half of 2019 [6] - A strategic acquisition of Action Industrial Catering in Australia was completed, expanding service offerings and geographic footprint [10] - The company aims to maximize free cash flow and reduce debt while exploring growth investments to enhance competitive positioning [33] Management's Comments on Operating Environment and Future Outlook - Management expects stronger oil sands build rooms in Canada for Q3 2019, driven by turnaround and maintenance activity [25] - The outlook for Australia remains positive due to healthy commodity prices, with expectations for modest improvement in build rooms [28] - In the U.S., a decrease in drilling and completion activity is anticipated in the second half of 2019 [30] Other Important Information - The company reported capital expenditures of $11.5 million in Q2 2019, with a total of $21.2 million year-to-date [23] - Outstanding debt as of June 30, 2019, was $405.3 million, reflecting a $21.8 million increase since March 31, 2019 [23] Q&A Session Summary Question: Increase in receivables and cash generation - Management noted that the increase in receivables was primarily due to revenue ramp-up in Canada, with most of the increase collected post-quarter [35] Question: Debt extension and credit facility - Discussions are ongoing with banks for an extension of the credit agreement, with positive feedback received so far [36][37] Question: Margin profile of contract extensions - Management confirmed that the pricing and margin profile of recent contract extensions would be consistent with prior agreements [38] Question: Guidance for Q3 and Q4 - The company expects strong build room improvements in Q3, but a softening in Q4 due to seasonal factors [40][41] Question: CapEx plans for the remainder of the year - CapEx is guided at $40 million to $45 million for the year, with a decrease expected in 2020 [46][48] Question: Impact of Action acquisition - The Action acquisition is expected to contribute approximately $60 million in revenues and $5 million in EBITDA next year, with potential for synergies [50][51]
Civeo(CVEO) - 2019 Q1 - Earnings Call Transcript
2019-04-26 19:39
Financial Data and Key Metrics Changes - In Q1 2019, the company generated revenues of $109 million, an increase from $102 million in Q1 2018, and adjusted EBITDA of $16 million, up from $10 million last year [7][14] - Operating cash flow for the quarter was $6 million, with $3 million in debt repaid, offset by a negative foreign currency translation impact of $8 million [8][22] - The net loss on a GAAP basis was $17.5 million, or $0.11 per diluted share [14] Business Segment Performance - Canadian segment revenues were $66.8 million, down from $69.4 million in Q4 2018, with adjusted EBITDA declining to $10.2 million from $11.8 million [15][16] - Australian segment revenues were $28.4 million, slightly down from $29.7 million in Q4 2018, with adjusted EBITDA decreasing to $9.9 million from $11.7 million [18] - U.S. segment revenues declined to $13.4 million from $15.5 million, but adjusted EBITDA improved to $2.8 million from $1.9 million [20] Market Data and Key Metrics Changes - The Canadian segment faced challenges due to lower room demand from major customers and oil production curtailments, but was partially offset by $145 million from an insurance claim [9][10] - In Australia, the outlook remains positive due to strong met coal prices, which are expected to drive activity in the Bowen and Gunnedah basins [12][27] - The U.S. segment showed improved performance despite moderating drilling activity, with healthy occupancy levels in West Texas and North Dakota lodges [13][29] Company Strategy and Industry Competition - The company is focused on generating free cash flow, executing contract-backed investments in the Canadian LNG space, and selectively deleveraging its balance sheet [23][32] - The company aims to provide best-in-class service while managing costs and investing in attractive growth opportunities across key end markets [32] Management's Comments on Operating Environment and Future Outlook - Management expects an increase in turnaround and maintenance activity in Canada starting in Q2 2019, with significant impacts anticipated in Q3 [24] - The company anticipates improved occupancy related to LNG projects in British Columbia, with the Sitka Lodge expansion expected to be completed by the end of Q2 2019 [25][26] - In Australia, strong demand for met coal and iron ore is expected to support healthy cash flows and growing export volumes [27][28] Other Important Information - Total debt outstanding as of March 31, 2019, was $383.5 million, with total liquidity of approximately $66 million [22] - The company expects Q2 2019 revenues of $113 million to $118 million and adjusted EBITDA of $21 million to $23.5 million [30] Q&A Session Summary Question: Impact of LNG activity shifting to 2020 - Management indicated that some LNG-related activity is expected to shift from 2019 to 2020, with an estimated $50 million impact in 2020 and an additional $50 million in 2021 from pipeline contracts [34][36] Question: Overall occupancy levels and room rate prices - Management noted that room rates in Canada have contracted due to efforts to reduce costs in a lower oil price environment, but pricing has largely stabilized [39][41] Question: Increased CapEx in Australia - Management explained that the increase in CapEx is to reactivate existing rooms and prepare for anticipated demand growth, with total CapEx guidance for 2019 set at $40 million to $45 million [45][46]