Oceaneering International(OII) - 2024 Q2 - Quarterly Results

Financial Performance - For Q2 2024, Oceaneering reported revenue of $668.8 million, a 12% increase from $597.9 million in Q2 2023[11] - Net income for Q2 2024 was $35.0 million, or $0.34 per share, compared to $19.0 million, or $0.19 per share in Q2 2023[11] - Adjusted net income for Q2 2024 was $28.6 million, reflecting a $1.0 million impact from foreign exchange gains and $5.5 million in discrete tax adjustments[11] - Total revenue for the six months ended June 30, 2024, was $48,376 thousand, compared to $40,736 thousand for the same period in 2023, marking a growth of 18.4%[28] - Total revenue for the company was $668,808 thousand, an increase from $597,910 thousand year-over-year, reflecting a growth of 12%[47] - Revenue for the Subsea Robotics segment increased to $214,985 thousand, up from $186,512 thousand year-over-year, representing a growth of 15%[47] - Revenue from the Manufactured Products segment increased to $139,314 thousand, up from $124,882 thousand, marking a growth of 11%[47] - Revenue for the three months ended June 30, 2024, reached $668,808,000, up from $597,910,000 in the prior year, reflecting an increase of about 11.8%[63] Cash Flow and Financial Guidance - The cash flow provided by operating activities was $52.6 million, with free cash flow of $29.8 million, and an ending cash position of $383 million[12] - Oceaneering expects to generate positive free cash flow in 2024, estimated between $110 million to $150 million[13] - Free cash flow for the second quarter of 2024 was $29,765 thousand, a significant recovery from a negative cash flow of $(1,977) thousand in the same quarter of 2023[32] - Free Cash Flow is projected to be between $95,000 thousand and $105,000 thousand for the upcoming quarter[56] - The company expects full-year 2024 revenue guidance to be between $340,000 thousand and $370,000 thousand[33] Operating Performance - Oceaneering's consolidated adjusted EBITDA for Q2 2024 was $85.9 million, with a guidance range for full-year 2024 adjusted EBITDA narrowed to $340 million to $370 million[12][13] - The overall operating income for the company was $60,364 thousand, with an operating margin of 9%, compared to 8% in the same quarter last year[47] - Operating income for the Subsea Robotics segment rose to $61,750 thousand, with an operating margin of 29%, compared to 23% in the same quarter last year[47] - Operating income for the Aerospace and Defense Technologies segment was $7,244 thousand, with an operating margin of 7%, down from 12% year-over-year[47] - The Offshore Projects Group (OPG) operating income declined by 23% despite a 10% increase in revenue, resulting in a margin drop from 13% to 9%[15] Backlog and Order Intake - The backlog for Manufactured Products reached $713 million as of June 30, 2024, an increase of $295 million year-over-year[35] - The book-to-bill ratio for the 12-month period ending June 30, 2024, was 1.56, compared to 1.19 for the same period last year, indicating improved order intake[35] Depreciation and Expenses - Total depreciation and amortization for the second quarter of 2024 was $25,980 thousand, slightly down from $26,046 thousand in the same quarter of 2023[32] - Unallocated expenses for the quarter were $39.7 million, in line with guidance but higher than the same period last year[5] Future Outlook - The company anticipates improved SSR activity levels and operating profitability, with a forecast for Manufactured Products revenue to be higher but with lower operating profitability[6] - The company plans to discuss detailed guidance for the full year and third quarter of 2024 in a conference call scheduled for July 25, 2024[39] - Net income for 2024 is anticipated to be between $130 million and $150 million[72] - ADTech operating income and margins are projected to be lower compared to 2023[72]