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].

Financial Data and Key Metrics Changes - For the full year 2021, Civeo generated $87 million in free cash flow and reduced total debt by $76 million, ending the year with $175 million in total debt [6] - In Q4 2021, Civeo reported total revenue of $159.8 million, with GAAP net income of $9.8 million or $0.58 per diluted share [15] - Adjusted EBITDA for Q4 2021 was $34.5 million, with free cash flow of $26.1 million [15][6] - The net leverage ratio decreased to 1.49 times at year-end from 1.86 times at the end of Q3 2021 [14] Business Line Data and Key Metrics Changes - Canadian segment revenue increased to $92.2 million in Q4 2021 from $65.5 million in Q4 2020, with adjusted EBITDA rising to $23.1 million from $13.8 million [17][18] - Australian segment revenue decreased to $62.3 million in Q4 2021 from $63.7 million in Q4 2020, with adjusted EBITDA down to $13.6 million from $17.2 million [20] - U.S. segment revenue increased to $5.3 million in Q4 2021 from $4.2 million in Q4 2020, with adjusted EBITDA improving to $3.3 million from a negative $1.4 million [22] Market Data and Key Metrics Changes - Canadian build rooms totaled 588,000 in Q4 2021, up 25% year-over-year from 469,000 [19] - Australian build rooms were 465,000 in Q4 2021, down from 480,000 in Q4 2020 [21] - The average daily rate for Canadian lodges was $106, an 8% year-over-year increase, while the Australian average daily rate remained at $77 [19][21] Company Strategy and Development Direction - Civeo's strategy focuses on diversifying revenue streams to reduce volatility in cash flow generation while prioritizing debt reduction [6][7] - The company aims to return capital to shareholders through a share repurchase program while maintaining a focus on debt paydown [9][38] - Management is optimistic about the potential for increased capital expenditures from customers if commodity prices stabilize [29][32] Management's Comments on Operating Environment and Future Outlook - Management noted that customers are currently focused on capital discipline and returning capital to shareholders, impacting spending on maintenance and production [8] - The outlook for 2022 includes revenue guidance of $600 million to $615 million and EBITDA guidance of $90 million to $95 million [26] - The primary uncertainty in 2022 guidance is the timing and duration of pipeline projects in British Columbia [28] Other Important Information - Total capital expenditures for 2021 were $15.6 million, up from $10.1 million in 2020, with expectations for 2022 to be between $20 million and $25 million [23][26] - The company has total liquidity of approximately $92.8 million as of December 31, 2021 [24] Q&A Session Summary Question: Use of cash and share buyback program - Management indicated that the share buyback program has been progressing well, with about 30% of the authorization completed [39] Question: Canadian mobile camp revenue from pipeline projects - Management confirmed that 95% to 100% of mobile camp revenue is related to the Coastal GasLink and TMX projects [42] Question: Revenue contribution from the West Permian Lodge - The West Permian Lodge generated nearly $2 million in revenue before its sale, and the U.S. business is expected to run at breakeven to a $2 million EBITDA loss in 2022 [44] Question: Capital allocation priorities - Management stated that debt paydown is the top priority, followed by share buybacks, with M&A being the last option [54] Question: Australian labor costs and guidance - Management noted that labor costs are high due to COVID-related restrictions and that improvements are expected to take the full balance of 2022 [50] Question: Canadian turnaround activity expectations - Management expressed a conservative outlook for Canadian occupancy in 2022, dependent on customer capital expenditure alignment [51]

Financial Performance - Total revenue for the year ended December 31, 2021, was $594.5 million, an increase of 12.3% from $529.7 million in 2020[39] - Accommodation revenue in Canada was $239.5 million in 2021, compared to $202.5 million in 2020, reflecting a growth of 18.3%[40] - Mobile facility rental revenue increased to $77.3 million in 2021 from $50.0 million in 2020, marking a growth of 54.5%[40] - Food service and other services revenue remained stable at $124.8 million in 2021, slightly up from $124.4 million in 2020[40] - Revenues from lodges and villages represented over 65% of consolidated revenues for the year ended December 31, 2021[104] - The Australian operations generated 42% of total revenue, with 9,046 rooms owned across nine villages, maintaining the same number of rooms as in 2020[72][80] - The U.S. business accounted for 4% of total revenue, with 535 rooms across two lodges as of December 31, 2021, down from 925 rooms in 2020[85][92] Operations and Capacity - The company operates 27 lodges and villages with over 28,000 rooms, in addition to approximately 9,500 rooms owned by customers[27] - The company’s Wapasu Creek Lodge has more than 5,000 rooms, comparable in size to the largest hotels in North America[62] - As of December 31, 2021, the total number of rooms in Canadian lodges was 18,947, a decrease from 19,024 in 2020, representing a decline of approximately 0.4%[67] - The company had commitments for 29% of rentable rooms for 2022 and 9% for 2023, excluding exclusivity contracts[104] - As of December 31, 2021, the company had 8,281 rooms under contract, with 4,048 set to expire in 2022 and 3,616 in 2023[107] Market Demand and Influences - Demand for hospitality services is influenced by commodity prices, with a recovery in global oil demand observed throughout 2021 and into 2022[30] - The demand for hospitality services in Canada is largely driven by commodity prices, particularly crude oil prices for oil sands projects[55] - The company’s operations are significantly affected by seasonal weather, impacting service provision during spring thaw and winter months[106] - The company’s customers face unique operating risks that could adversely affect demand for the company’s services, including unexpected problems and higher costs in project development[203] - The current volatile commodity price environment may hinder customers from renewing contracts on favorable terms, impacting the company's revenue stability[209] Customer Base and Partnerships - The largest customers in 2021 included Suncor Energy Inc, Imperial Oil Limited, and Fortescue Metals Group Ltd, each accounting for over 10% of revenues[99] - The company entered into three new Indigenous partnerships in the oil sands region and two in British Columbia in 2018, with a new partnership in British Columbia in 2021[96] - In 2021, the company purchased more than C$56.5 million in goods and services from the Indigenous business community, representing 32% of total Canadian local spending[94] - The company is highly dependent on several significant customers in the natural resources industry, and the loss of any major customer could lead to substantial revenue loss[206] Regulatory and Environmental Factors - The British Columbia Oil and Gas Commission (BCOGC) has implemented new regulations effective January 1, 2020, requiring operators to eliminate or reduce natural gas leaks, which may lead to increased operational costs for customers[123] - Canada aims to reduce methane emissions from the oil and gas sector by 40-45% below 2012 levels by 2025, with regulations taking effect in 2020 and additional requirements in 2023[129] - The Greenhouse Gas Pollution Pricing Act (GGPPA) imposes a carbon price that will escalate to $50 per tonne of CO2e in 2022 and further increase to $170 per tonne by 2030, impacting operational costs for companies[130][132] - The Canadian Net-Zero Emissions Accountability Act mandates the government to achieve net-zero emissions by 2050, establishing five-year emissions-reduction targets[134] - The federal government has committed to reducing emissions by 40-45% below 2005 levels by 2030, which may result in additional costs for companies in the oil and gas sector[135] Challenges and Risks - The company is exposed to various legal and regulatory risks, including extensive environmental laws and potential changes in tax laws that could impact its financial position[190] - Increased operating costs, particularly in food, wages, and utilities, may constrain profitability if not recoverable through pricing adjustments[218] - A shortage of skilled labor has led to increased reliance on expensive temporary labor, negatively affecting profitability[221] - The company faces risks related to contract cancellations and reduced customer utilization, which could materially affect business operations[209] - The company’s profitability may be adversely affected by fluctuations in food prices due to global demand and climate-related supply issues[220] Impact of COVID-19 - The COVID-19 pandemic has materially affected the company’s operations and those of its customers, with ongoing uncertainty regarding future impacts on financial results[200] - The company has implemented measures to comply with COVID-19 regulations, which have resulted in disruptions and increased costs[201] - The company experienced a decrease in customer demand for accommodations in 2020 due to COVID-19, but demand began recovering in 2021, although not to pre-COVID levels[217] Strategic Positioning - The company has exited the Bakken region and reduced its presence in the Rockies due to volatility in oil prices, reallocating assets to the Permian Basin and Mid-Continent[90] - The company’s business model relies on customers outsourcing accommodations, which may be reversed if customers choose to utilize their own facilities[215] - The company operates in a highly competitive industry, facing challenges in maintaining service quality and pricing against larger competitors[216]

Financial Data and Key Metrics Changes - In Q3 2021, Civeo reported total revenues of $155.1 million, with net income of $0.1 million or $0.00 per diluted share [12] - Adjusted EBITDA for the quarter was $26.2 million, operating cash flow was $33.9 million, and free cash flow was $31 million [12] - The net leverage ratio decreased to 1.86 times as of September 30, 2021, down from 1.98 times as of June 30, 2021 [17] Business Segment Data and Key Metrics Changes - Canadian segment revenues increased to $84.1 million from $71.8 million in Q3 2020, with adjusted EBITDA of $19.8 million, down from $21.3 million [13] - Australian segment revenues were $65.1 million, slightly up from $64.7 million in Q3 2020, but adjusted EBITDA decreased to $14.8 million from $21.5 million [14] - U.S. segment revenues were $5.9 million, down from $6.4 million in Q3 2020, with adjusted EBITDA improving to negative $0.5 million from negative $1.5 million [16] Market Data and Key Metrics Changes - The Canadian oil sands region saw a 21% year-over-year increase in billed rooms, totaling 613,000 [13] - In Australia, billed rooms decreased to 491,000 from 514,000 in Q3 2020, influenced by customer hesitancy in capital projects [14] - The U.S. lodge occupancy increased sequentially, although offshore work decreased [11] Company Strategy and Development Direction - The company is focused on free cash flow generation, debt reduction, and maintaining a conservative approach to capital allocation [6][9] - Civeo announced a share repurchase program for up to 5% of total common shares outstanding [6] - The company plans to prioritize safety, manage costs according to market outlooks, enhance hospitality offerings, and allocate capital prudently [22] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding improvements in commodity prices but noted that customer spending plans remain conservative [9][20] - The outlook for the Canadian segment is steady with expected strong mobile camp activity, while the Australian segment faces subdued customer spending and increased labor costs [19][20] - The U.S. segment is seeing gradual recovery, but rig counts lag behind commodity price movements [21] Other Important Information - Civeo replaced and refinanced its entire debt agreement, extending maturity to September 2025, providing more financial flexibility [17] - Total liquidity as of September 30, 2021, was approximately $78.2 million [17] Q&A Session Summary Question: What should be watched for improvement in the Australian markets next year? - Management indicated that announcements from customers regarding capital spending plans will be crucial for increased occupancy [25] Question: How will the return of capital to shareholders evolve? - Currently, the focus is on the share repurchase program, with no immediate plans to expand it beyond the 5% limit [26][27] Question: What is the opportunity in the global gas markets on the West Coast of Canada? - Management is monitoring the LNG Canada project for potential benefits to their operations [28][29] Question: What factors are driving the higher end of EBITDA guidance? - The increase is largely attributed to the Canadian business, particularly occupancy and pipeline construction camp activity [32] Question: What is needed for greater labor availability in Australia? - Easing of international borders and travel restrictions within Australia is necessary to improve labor supply [37]

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, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |------------------------------------------------------------------------------|------------------------------------------| | | | | For the transition period from ________ ...

Financial Performance & Valuation - Civeo's Fully Diluted Equity Value is $376 million and Enterprise Value is $598 million[4] - Civeo reported revenues of $154.2 million in 2Q21, a 23% increase from 1Q21[26, 27] - Adjusted EBITDA for 2Q21 was $32.2 million, a 99% increase from 1Q21[26, 27] - Civeo generated $13.7 million of free cash flow in 2Q21[26] - Civeo reduced total debt outstanding by $11.3 million in 2Q21[26] - Civeo decreased leverage ratio to 2.0x at June 30, 2021[7, 26] Business Operations & Market Exposure - North America accounted for 55% and Australia 45% of Civeo's LTM revenue[4, 14] - North America accounted for 51% and Australia 49% of Civeo's Adjusted EBITDA[4] - Less than 40% of Civeo's LTM gross profit is tied to oil activity[6, 13, 38]

Financial Data and Key Metrics Changes - Civeo reported total revenues of $154.2 million in Q2 2021, with a net loss of $0.5 million or $0.03 per diluted share [12] - Adjusted EBITDA for the second quarter was $32.2 million, with free cash flow of $13.7 million [6][12] - The leverage ratio decreased to 2.0x as of June 30, 2021, down from 2.1x at the end of Q1 2021 [7][21] Business Line Data and Key Metrics Changes - Canadian segment revenues increased to $83.3 million in Q2 2021 from $53 million in Q2 2020, with adjusted EBITDA rising to $22.6 million from $15.3 million [14][15] - Australian segment revenues were $64 million, up from $57.1 million in the same period last year, but adjusted EBITDA decreased to $15.4 million from $18.8 million [17] - US segment revenues increased to $6.9 million from $4.6 million year-over-year, with adjusted EBITDA improving to $0.3 million from a loss of $1.4 million [19] Market Data and Key Metrics Changes - Billed rooms in Canadian lodges totaled 723,000, up 76% year-over-year from 410,000 [16] - In Australia, billed rooms were 466,000, down from 502,000 in Q2 2020, impacted by lower customer activity [18] - The average daily rate for Australian villages increased to $81 from $70 in 2020, driven by a strengthened Australian dollar [18] Company Strategy and Development Direction - The company aims to prioritize safety and well-being, manage cost structures, enhance hospitality offerings, and allocate capital prudently to maximize free cash flow while focusing on debt reduction [28] - Civeo expects to maintain revenue and adjusted EBITDA guidance for the full year 2021, with revenues projected between $555 million and $850 million and adjusted EBITDA between $90 million and $100 million [21][22] Management's Comments on Operating Environment and Future Outlook - Management noted that labor supply issues and subdued customer activity in Australia are expected to be resolved by the end of 2021 [7] - The company anticipates continued pressure on performance in Australia due to prolonged travel restrictions and increased labor costs [25] - In Canada, management is optimistic about the recovery of occupancy levels as COVID-19 cases decline and health orders are lifted [24] Other Important Information - Civeo's total debt outstanding as of June 30, 2021, was $226.8 million, reflecting an $11.2 million decrease since March 31, 2021 [20] - Capital expenditures for Q2 2021 were $3.2 million, up from $1.2 million in the same period last year [20] Q&A Session Summary Question: What will drive activity in the met coal markets? - Management indicated that certainty in the market will drive customer spending, and while modest improvements are expected, they do not anticipate reaching pre-pandemic levels soon [30][31] Question: Is turnaround activity expected to improve in Australia? - Management confirmed that turnaround activity in Canada has improved significantly, with expectations for continued improvement in billed rooms [32][34] Question: What are the plans for capital allocation given the reduced leverage? - Management is considering a share repurchase program as leverage approaches a comfortable level [35] Question: What are the key growth drivers for the business in the next one to two years? - Management highlighted recovery in Canada, potential growth projects in Australia, and expansion of integrated services as key growth drivers [36][37] Question: How is the company managing COVID-related personnel issues and cost inflation? - Management reported no positive COVID-19 cases in their villages and noted that while they are managing labor costs, they expect higher costs to persist due to ongoing restrictions [39][41]

Financial Performance - Revenues for the three months ended June 30, 2021, were $154.176 million, a 34.7% increase from $114.702 million for the same period in 2020[11] - Operating income for the three months ended June 30, 2021, was $2.129 million, compared to a loss of $1.841 million for the same period in 2020[11] - Net income attributable to Civeo Corporation for the three months ended June 30, 2021, was $13, compared to $6.607 million for the same period in 2020[11] - For the six months ended June 30, 2021, total revenues were $279.6 million, compared to $253.5 million for the same period in 2020, reflecting a 10.3% increase[92] - Total revenues for the three months ended June 30, 2021, were $154.2 million, a 34.4% increase from $114.7 million for the same period in 2020[92] - Total revenues for the six months ended June 30, 2021, increased by $26.1 million, or 10%, to $279.6 million compared to $253.5 million for the same period in 2020[153] Assets and Liabilities - Total current assets increased to $143.277 million as of June 30, 2021, from $119.213 million as of December 31, 2020[18] - Total liabilities decreased to $354.282 million as of June 30, 2021, from $365.496 million as of December 31, 2020[18] - Total shareholders' equity decreased to $363.405 million as of June 30, 2021, from $375.357 million as of December 31, 2020[18] - Total assets as of June 30, 2021, were $717.7 million, compared to $734.6 million at December 31, 2020[92] - Cash and cash equivalents decreased to $4.414 million as of June 30, 2021, from $6.155 million as of December 31, 2020[18] Income and Expenses - The company reported a comprehensive loss of $1.552 million for the three months ended June 30, 2021, compared to a comprehensive income of $35.911 million for the same period in 2020[15] - The company incurred impairment expense of $7.935 million for the six months ended June 30, 2021, compared to $144.120 million for the same period in 2020[11] - The company reported depreciation and amortization of $42,646 thousand for the six months ended June 30, 2021, down from $47,707 thousand in 2020[27] - Consolidated cost of sales and services increased by $24.9 million, or 30%, in Q2 2021 compared to Q2 2020, totaling $108.0 million[132] - Selling, general and administrative expenses increased by $3.2 million, or 28%, in Q2 2021 compared to Q2 2020, totaling $14.7 million[133] Net Loss and Earnings Per Share - Basic net loss per share attributable to Civeo Corporation common shareholders was $(0.03) for the three months ended June 30, 2021, compared to $0.37 for the same period in 2020[11] - Net loss for the six months ended June 30, 2021, was $9,415 thousand, compared to a net loss of $138,983 thousand for the same period in 2020[27] - For the three months ended June 30, 2021, Civeo reported a net loss attributable to common shareholders of $467,000 compared to a net income of $6.1 million in the same period in 2020[66] - Net loss attributable to Civeo Corporation for the six months ended June 30, 2021, was $10.4 million, or $0.73 per diluted share, significantly improved from a net loss of $140.4 million, or $9.96 per diluted share, in the same period of 2020[153] Cash Flow and Capital Expenditures - Cash flows provided by operating activities for the six months ended June 30, 2021, were $29,350 thousand, down from $45,318 thousand in 2020[27] - Total capital expenditures for the six months ended June 30, 2021, were $6,530 thousand, compared to $3,847 thousand in 2020[27] - Capital expenditures for 2021 are expected to total approximately $20 million, up from $10.1 million in 2020[127] Taxation - Civeo's effective tax rate for the three months ended June 30, 2021 was 102.1% of pretax loss, compared to a tax expense of 1.8% of pretax income in the same period of 2020[77] - The income tax expense for the six months ended June 30, 2021, totaled $0.6 million, or (6.6)% of pretax loss, compared to a benefit of $8.7 million, or 5.9% of pretax loss for the same period in 2020[78] Segment Performance - Accommodation revenues in Canada for the three months ended June 30, 2021, were $69.759 million, up 73.5% from $40.204 million in the same period of 2020[42] - The Canadian segment reported revenues that were $12.8 million, or 10%, higher than the six months ended June 30, 2020, primarily due to a 9% strengthening of the Canadian dollar against the U.S. dollar[167] - The Australian segment's revenues increased by $17.5 million, or 17%, for the six months ended June 30, 2021, largely due to a 17% strengthening of the Australian dollar against the U.S. dollar, which contributed $18.3 million to revenue growth[172] - The U.S. segment reported revenues of $10.8 million for the six months ended June 30, 2021, a decrease of $4.2 million, or 28%, compared to $14.9 million in the same period of 2020, due to reduced drilling activity[176] Market Conditions and Risks - The ongoing trade dispute between China and Australia has led to a trade embargo on Australian coal, impacting approximately 22% of Australia's met coal exports[117] - The company is exposed to market risks related to interest rates and foreign currency exchange rates, which could impact financial performance[197] - The company believes that any ultimate liability from pending legal proceedings will not have a material adverse effect on its consolidated financial position[204]

Financial Data and Key Metrics Changes - Civeo reported total revenues of $125.4 million in Q1 2021, with a net loss of $10 million or $0.70 per diluted share [12] - Adjusted EBITDA was $16.2 million, with free cash flow of $16.1 million, and a leverage ratio of 2.1x, remaining flat sequentially [6][17] - The company repaid $14.6 million of debt during the quarter, reducing total debt outstanding to $238.1 million [6][17] Business Line Data and Key Metrics Changes - Canadian segment revenue was $61.9 million, down from $79.3 million in Q1 2020, with adjusted EBITDA of $10.8 million, a decrease from $11.4 million [13] - Australian segment revenue increased to $59.6 million from $49.1 million in Q1 2020, but adjusted EBITDA decreased to $12.8 million from $16.2 million [15] - U.S. segment revenue fell to $3.9 million from $10.3 million in Q1 2020, with negative adjusted EBITDA of $1.2 million [16] Market Data and Key Metrics Changes - Canadian segment occupancy improved sequentially despite public health orders, while Australian segment faced declines due to customer downtime and labor supply issues [9][10] - The U.S. segment is beginning to see signs of recovery with oil and gas operators selectively adding rigs in response to higher commodity prices [22] Company Strategy and Development Direction - The company aims to prioritize employee and guest safety, maximize free cash flow, reduce debt, and manage costs without compromising service quality [11][23] - Full year 2021 revenue guidance was adjusted to between $555 million to $580 million, with adjusted EBITDA expected to range from $90 million to $100 million [18] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the remainder of 2021, highlighting potential improvements in Canadian and Australian segments due to favorable commodity prices and operational activities [20][21] - The company remains focused on resolving labor shortages in Australia and anticipates a stronger second half of the year [31] Other Important Information - Capital expenditures for Q1 2021 were $3.4 million, primarily for maintenance needs [17] - Total liquidity as of March 31, 2021, was approximately $112.4 million [17] Q&A Session Summary Question: Thoughts on capital allocation and potential stock buybacks - Management indicated that discussions on capital allocation are ongoing, with a focus on seeing second quarter results and continued debt reduction before considering stock buybacks [26][27] Question: Historical patterns of EBITDA allocation across quarters - Management confirmed that historical patterns remain consistent, with 60% to 70% of EBITDA typically generated in the second and third quarters [28] Question: Update on Action acquisition and outlook for Australia - Management reported challenges in the Action business due to labor availability but remains cautiously optimistic for resolution in the second quarter [30] - The outlook for met coal activity in Australia is cautiously optimistic, with no significant impact from the Chinese trade dispute observed so far [32]