Oil States International(US:OIS)2025-05-01 19:03Financial Performance - Revenues for Q1 2025 were $159,938, a decrease of 4.0% from $167,262 in Q1 2024, with product revenues increasing by 6.0% to $100,551, while service revenues decreased by 18.6% to $59,387[13]. - Net income for Q1 2025 was $3,158, compared to a net loss of $13,374 in Q1 2024, marking a significant turnaround[14]. - Operating income improved to $5,639 in Q1 2025 from a loss of $11,177 in Q1 2024, indicating better operational efficiency[13]. - Cash flows from operating activities were $9,295 in Q1 2025, a recovery from cash used of $11,360 in Q1 2024[22]. - The company reported comprehensive income of $8,697 in Q1 2025, compared to a comprehensive loss of $16,401 in Q1 2024, driven by positive currency translation adjustments[14]. - The company reported a net increase in contract assets of $7.8 million for Q1 2025, primarily due to $20.6 million in revenue recognized during the period[36]. - The company’s income tax expense for the three months ended March 31, 2025, was $1.0 million, compared to $24 thousand for the same period in 2024[58]. - The company’s capital expenditures for the three months ended March 31, 2025, amounted to $9.2 million[66]. - Consolidated total revenues for the first three months of 2025 decreased by $7.3 million, or 4%, compared to the same period in 2024, primarily due to the exit of underperforming service offerings which generated $16.8 million in revenues in Q1 2024[108]. - Net income for the first three months of 2025 was $3.2 million, or $0.05 per share, compared to a net loss of $13.4 million, or $0.21 per share, in Q1 2024, which included a non-cash goodwill impairment charge of $10.0 million[106]. Assets and Liabilities - Total assets decreased to $990,735 as of March 31, 2025, from $1,005,108 at the end of 2024, reflecting a reduction in overall asset base[17]. - As of March 31, 2025, total accounts receivable was $186.3 million, a decrease from $197 million as of December 31, 2024, with an allowance for doubtful accounts of 1%[34]. - Total long-term debt as of March 31, 2025, was $124.7 million, slightly up from $124.7 million as of December 31, 2024[41]. - The company’s deferred revenue (contract liabilities) decreased by $1.5 million to $50.9 million as of March 31, 2025[35]. - The company’s inventories increased to $255.1 million as of March 31, 2025, compared to $253.8 million as of December 31, 2024[37]. - The company had $123.5 million principal amount of 2026 Notes outstanding as of March 31, 2025, with a maturity date of April 1, 2026[135]. - Total debt represented 15% of the combined total debt and stockholders' equity as of March 31, 2025, down from 16% as of December 31, 2024[144]. Shareholder Activities - The weighted average number of common shares outstanding decreased to 60,167 in Q1 2025 from 62,503 in Q1 2024, reflecting share repurchase activities[13]. - The company purchased 1.0 million shares of common stock at a total cost of $5.3 million during the three months ended March 31, 2025, leaving $36.0 million remaining under the current share repurchase authorization[54]. - The company repurchased $5.3 million of common stock during Q1 2025, leaving $36.0 million remaining under the share repurchase authorization[139]. - A total of 1,493,961 shares were purchased from January 1 through March 31, 2025, at an average price of $5.19 per share[160]. - The Board of Directors authorized a $50 million share repurchase program, with $14 million utilized as of March 31, 2025[161]. Operational Efficiency - The company incurred $12,025 in depreciation and amortization expenses in Q1 2025, down from $14,195 in Q1 2024, suggesting a reduction in asset depreciation[13]. - The company’s amortization expense for Q1 2025 was $3.8 million, down from $4.3 million in Q1 2024[40]. - Selling, general and administrative expenses for the quarter were $22.496 million, with $9.129 million attributed to corporate expenses[68]. - Corporate expenses increased by $0.7 million, or 8%, in Q1 2025 compared to Q1 2024, primarily due to higher performance-based incentive compensation costs[126]. - The Downhole Technologies segment reported an operating loss of $2.1 million in Q1 2025, an improvement from a $12.1 million loss in Q1 2024, which included a $10.0 million goodwill impairment charge[125]. Market Conditions and Future Outlook - Management expects that the trade conflict and increased crude oil production could adversely affect demand for the company's products and services, particularly in the United States, over the balance of 2025[84]. - The company expects continued volatility in crude oil and natural gas prices due to geopolitical conflicts and economic conditions, which may impact customer capital investment decisions[88]. - The average price of Brent crude oil for the quarter ended March 31, 2024, was $82.92 per barrel, while WTI crude averaged $77.50 per barrel[82]. - The spot price of WTI crude oil declined approximately 20% in April 2025 due to trade tariffs and OPEC+ plans to increase production, raising uncertainties about future demand[83]. Strategic Investments - The company is investing in research and product development for alternative energy sources, including offshore wind and deep-sea mineral gathering opportunities[92]. - The company expects to invest approximately $25 million in capital expenditures during 2025, funded by available cash and internally generated funds[133].