Civeo(US:CVEO)2025-02-27 13:55Financial Performance - Civeo reported fourth quarter 2024 revenues of $151.0 million, a net loss of $15.1 million, and operating cash flow of $9.5 million, with full year 2024 revenues of $682.1 million and a net loss of $17.1 million[3]. - Revenues for Q4 2024 were $150.951 million, a decrease of 11.6% from $170.799 million in Q4 2023[29]. - Total revenues for the twelve months ended December 31, 2024, were $682.122 million, down 2.7% from $700.805 million in 2023[29]. - Operating loss for Q4 2024 was $10.043 million compared to an operating income of $22.048 million in Q4 2023[29]. - Net loss attributable to Civeo Corporation for the twelve months ended December 31, 2024, was $17.067 million, compared to a net income of $30.157 million in 2023[29]. - EBITDA for the twelve months ended December 31, 2024, was $71.249 million, down 44.7% from $128.937 million in 2023[34]. - Adjusted EBITDA for the twelve months ended December 31, 2024, was $79.937 million, a decrease of 25.0% from $106.494 million in 2023[34]. - Adjusted EBITDA for Q4 2024 was $11,440, down 38.0% from $18,524 in Q4 2023[43]. - Free Cash Flow for the twelve months ended December 31, 2024, was $68,383, compared to $81,672 in 2023, a decrease of 16.3%[44]. Segment Performance - The Australian segment generated revenues of $110.0 million in Q4 2024, a 23% increase year-over-year, driven by a significant increase in integrated services activity[9][10]. - Civeo's Canadian segment experienced a 44% decrease in revenues to $40.7 million in Q4 2024, primarily due to lower billed rooms and occupancy[12][13]. - Total Australian revenues for Q4 2024 reached $109,989, an increase of 23.2% compared to $89,345 in Q4 2023[35]. - Total Canadian revenues for Q4 2024 were $40,664, a decrease of 44.1% from $72,728 in Q4 2023[35]. Shareholder Returns - The company returned $44.0 million to shareholders in 2024, representing 65% of free cash flow of $68.4 million[3]. - The company repurchased 1,130,000 shares for approximately $29.6 million in 2024, compared to 564,000 shares for $11.6 million in 2023[15]. Future Outlook - Civeo expects full year 2025 revenues of $630.0 million to $660.0 million and Adjusted EBITDA of $80.0 million to $90.0 million, excluding contributions from the recent Australian asset acquisition[19]. - For the year ending December 31, 2025, Civeo estimates an EBITDA range of $74.3 million to $84.3 million and an adjusted EBITDA range of $80.0 million to $90.0 million[48]. - The estimated net loss for the year ending December 31, 2025, is projected to be between $11.7 million and $3.7 million[49]. Balance Sheet and Liquidity - As of December 31, 2024, Civeo had total liquidity of approximately $202.2 million and total debt of $43.3 million, a decrease of $22.3 million from the previous year[14]. - Cash and cash equivalents increased to $5.204 million as of December 31, 2024, from $3.323 million at the end of 2023[30]. - Accounts receivable decreased significantly to $89.038 million in 2024 from $143.222 million in 2023, a decline of 37.8%[30]. - Total assets decreased to $405.072 million in 2024 from $548.062 million in 2023, a reduction of 26.1%[30]. - Total liabilities decreased to $168.074 million in 2024 from $225.024 million in 2023, a decline of 25.3%[30]. - As of December 31, 2024, Civeo's total debt was $43.3 million, with net debt amounting to $38.1 million after accounting for cash and cash equivalents of $5.2 million[46]. - The bank-adjusted EBITDA for the twelve months ended December 31, 2024, was $80.5 million, resulting in a net leverage ratio of 0.5x[46]. - The net leverage ratio as of December 31, 2024, was 0.5x, indicating a strong position relative to debt obligations[43]. Capital Expenditures and Costs - Civeo invested $26.1 million in capital expenditures for the full year 2024, down from $31.6 million in 2023[17]. - The company plans to incur one-time restructuring costs of approximately $3 million in Q1 2025 as it adjusts its Canadian cost structure[14]. - Total costs of sales and services in Australia for Q4 2024 were $81,157, up 29.7% from $62,563 in Q4 2023[35]. Management and Compensation - Civeo's management believes that free cash flow provides useful information regarding the cash flow generating ability of its business relative to capital expenditures and debt service obligations[45]. - The company uses free cash flow as a benchmark for the award of incentive compensation under its annual incentive compensation plan[45]. - Civeo's share-based compensation expense is associated with performance share awards, restricted share awards, restricted share units, and deferred share awards[45].