Oceaneering International(OII)2024-10-25 20:54Earnings and Operating Income - Diluted earnings per share for Q3 2024 were $0.40, up from $0.29 in the same period last year, and $0.89 for the nine-month period, up from $0.52[91] - Operating income increased by 23% in Q3 2024 on a 7% revenue increase, and by 26% for the nine-month period on a 10% revenue increase[91] Segment Performance - Subsea Robotics segment revenue for Q3 2024 was $215.7 million, with operating income at $65.7 million, representing a 30% operating income margin[97] - Manufactured Products segment revenue for Q3 2024 was $143.7 million, with operating income at $11.3 million, representing an 8% operating income margin[97] - Offshore Projects Group segment revenue for Q3 2024 was $147.5 million, with operating income at $20.3 million, representing a 14% operating income margin[97] - Total Energy business revenue for Q3 2024 was $580.6 million, with operating income at $98 million, representing a 17% operating income margin[97] - IMDS segment revenue increased but operating income declined due to a one-time non-cash charge of $24 million related to the divestiture of the Maritime Intelligence division in September 2024[104] - ADTech segment revenue for the three-month period ended September 30, 2024, was $99.2 million, a slight increase from $98.6 million in the same period in 2023, but operating income decreased to $12.2 million from $14.1 million[105] Capital Expenditures and Share Repurchases - Cash used for maintenance capital expenditures was $36 million, and growth capital expenditures were $37 million for the nine-month period ended September 30, 2024[92] - The company repurchased shares of common stock for approximately $10 million during the first nine months of 2024[92] - The company repurchased 0.4 million shares of its common stock for approximately $10 million in the three months ended September 30, 2024[119] - The company repurchased 0.4 million shares for approximately $10 million in the three-month period ended September 30, 2024[121] Financial Position and Cash Flow - As of September 30, 2024, the company had net working capital of $611 million, including cash and cash equivalents of $452 million, and $215 million of unused commitments under its Revolving Credit Facility[113] - Cash flows from operating activities for the nine-month period ended September 30, 2024, were $74.8 million, up from $57.1 million in the same period in 2023[115] - Capital expenditures for the nine-month period ended September 30, 2024, were $73 million, with over half allocated to the Subsea Robotics segment[117] Backlog and Utilization Rates - Manufactured Products backlog as of September 30, 2024, was $671 million, up from $556 million in the same period last year[97] - ROV utilization rate was 69% for both Q3 2024 and Q3 2023, with 15,796 ROV days utilized out of 23,000 available days in Q3 2024[97] Expenses and Income - Unallocated expenses for the three-month period ended September 30, 2024, decreased to $38.9 million from $42.2 million in the same period in 2023, primarily due to lower professional fees[106] - Interest income for the three-month period ended September 30, 2024, decreased to $3.3 million from $3.7 million in the same period in 2023 due to lower cash balances[109] - Foreign currency transaction gains for the nine-month period ended September 30, 2024, were $3.7 million compared to a loss of $3.6 million in the same period in 2023[110] - Estimated income tax payments for the full year of 2024 are projected to be between $85 million and $95 million[112] Equity and Foreign Currency Adjustments - The company recorded net adjustments to equity accounts of $13 million and $(11) million in the three-month periods ended September 30, 2024 and 2023, respectively[126] - Foreign currency gains (losses) were $0.4 million and $0.9 million in the three-month periods ended September 30, 2024 and 2023, respectively[127] Investments and Bonds - The company purchased $7.0 million of U.S. dollar equivalent Angolan bonds in the third quarter of 2024, maturing in February 2031[128] - The fair market value of the Angolan bonds was estimated to be $7.0 million as of September 30, 2024[129] - The company had $6.2 million of U.S. dollar equivalent Angolan bonds that matured on September 1, 2023, and received cash proceeds of $6.2 million[129] Internal Controls and Reporting - The company concluded that its disclosure controls and procedures were effective as of September 30, 2024[131] - There was no change in the company's internal control over financial reporting during the three months ended September 30, 2024[132]