Civeo(US:CVEO)2025-10-31 11:35Financial Performance - Civeo generated revenues of $170.5 million in Q3 2025, with a net loss of $0.5 million, or $0.04 per diluted share[5]. - Adjusted EBITDA for Q3 2025 was $28.8 million, up 53% from $18.8 million in Q3 2024, driven by cost-cutting measures and contributions from the Australian acquisition[6][7]. - Total revenues for Q3 2025 were $170.491 million, a decrease of 3.8% from $176.338 million in Q3 2024[27]. - Operating income for Q3 2025 was $6.966 million, compared to $44 thousand in Q3 2024, indicating a significant decline[32]. - Net loss attributable to Civeo Corporation for Q3 2025 was $455 thousand, an improvement from a net loss of $5.091 million in Q3 2024[27]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $66.499 million, slightly down from $68.497 million in the same period of 2024[32]. - Total revenues for the nine months ended September 30, 2025, were $477.23 million, compared to $531.17 million for the same period in 2024, reflecting a decrease of 10.2%[39]. Segment Performance - The Australian segment reported revenues of $124.5 million and Adjusted EBITDA of $26.7 million, reflecting a 7% increase in revenues and a 19% increase in Adjusted EBITDA year-over-year[10][9]. - The Canadian segment generated revenues of $46.0 million, with an Adjusted EBITDA of $8.0 million, despite a 20% decline in billed rooms and revenues year-over-year[11][13]. - Total Australian revenues for Q3 2025 reached $124.46 million, a 6.4% increase from $116.62 million in Q3 2024[33]. - Total Canadian revenues for Q3 2025 were $46.03 million, down 20.2% from $57.74 million in Q3 2024[33]. - Civeo's asset-light segment, Catering and Facility Management, generated $90.12 million in Q3 2025, up from $87.09 million in Q3 2024[39]. Cost Management and Expenditures - Capital expenditures for Q3 2025 were $5.6 million, down from $7.5 million in Q3 2024, primarily for maintenance spending[17]. - The company implemented cost reduction strategies, including a 25% reduction in overhead headcount and a 29% decline in direct field-level costs year-over-year[19]. - Capital expenditures for the nine months ended September 30, 2025, were $15.380 million, compared to $18.405 million in the same period of 2024[30]. - The company incurred implementation costs related to cost savings initiatives, primarily severance and real estate expense rationalization[44]. - The company is actively pursuing cost-saving initiatives to improve financial performance and reduce expenses[45]. Shareholder Actions - Civeo repurchased approximately 1.05 million shares for about $26.2 million, completing 69% of its current share buyback authorization[16]. Liquidity and Debt - The company has total liquidity of approximately $70.2 million and total debt of $187.9 million as of September 30, 2025, resulting in a net leverage ratio of 2.1x[15]. - Total debt as of September 30, 2025, was $187.94 million, with net debt at $175.93 million after accounting for cash and cash equivalents[43]. - The net leverage ratio as of September 30, 2025, was 2.1x, indicating the company's debt levels relative to its adjusted EBITDA[43]. - Civeo is required to maintain a net leverage ratio below 3.0x each quarter as per its credit agreement, indicating a focus on managing indebtedness[44]. Guidance and Projections - Civeo is tightening its full-year 2025 revenue guidance to a range of $640 million to $655 million and Adjusted EBITDA guidance to $86 million to $91 million[18]. - For the year ending December 31, 2025, estimated net loss ranges from $21.3 million to $18.3 million, with an estimated EBITDA range of $75.7 million to $80.7 million[45]. - Adjusted EBITDA for 2025 is projected to be between $86.0 million and $91.0 million, after accounting for adjustments including shareholder activist costs, cost-saving initiatives, and share-based compensation[45]. Asset and Liability Overview - Cash and cash equivalents increased to $12.003 million as of September 30, 2025, up from $5.204 million at the end of 2024[28]. - Total assets rose to $491.067 million as of September 30, 2025, compared to $405.072 million at the end of 2024[28]. - Total liabilities increased to $308.521 million as of September 30, 2025, up from $168.074 million at the end of 2024[28]. - Civeo Corporation's total current assets increased to $140.130 million as of September 30, 2025, from $110.453 million at the end of 2024[28]. Strategic Initiatives - The company continues to focus on strategic initiatives, including market expansion and potential acquisitions, to enhance growth prospects[44]. - Civeo's management believes that net debt, bank-adjusted EBITDA, and net leverage ratio provide useful insights into the company's ability to service debt[44]. - Share-based compensation expenses associated with performance share awards and other awards were recorded, reflecting the company's commitment to incentivizing performance[44].