Oil States International(OIS) - 2021 Q3 - Quarterly Report

Financial Performance - Total revenues for Q3 2021 were $140.5 million, a 4% increase from $134.8 million in Q3 2020[13] - Net loss for Q3 2021 was $13.0 million, compared to a net loss of $20.0 million in Q3 2020, representing a 35% improvement[15] - Operating loss for the nine months ended September 30, 2021, was $53.5 million, a significant reduction from $506.0 million in the same period of 2020[13] - The company reported a comprehensive loss of $18.9 million for Q3 2021, compared to a comprehensive loss of $16.6 million in Q3 2020[15] - Basic net loss per share for Q3 2021 was $0.22, an improvement from $0.33 in Q3 2020[13] - For the nine months ended September 30, 2021, the net loss was $44.1 million, a significant improvement compared to a net loss of $449.6 million for the same period in 2020[26] - The company reported a net loss of $13.0 million, or $0.22 per share, for Q3 2021, compared to a net loss of $20.0 million, or $0.33 per share, in Q3 2020[152] Cash and Assets - Cash and cash equivalents decreased to $67.6 million as of September 30, 2021, down from $72.0 million at the end of 2020[17] - Total assets decreased to $1.09 billion as of September 30, 2021, compared to $1.15 billion at the end of 2020[17] - Total stockholders' equity decreased to $704.5 million as of September 30, 2021, from $757.6 million at the end of 2020[17] - Cash and cash equivalents at the end of the period for September 30, 2021, were $67.6 million, down from $79.7 million at the same time in 2020[26] - The company experienced a net change in cash and cash equivalents of $(4.5) million for the nine months ended September 30, 2021, compared to an increase of $71.2 million in 2020[26] Liabilities and Debt - Current liabilities increased to $172.3 million as of September 30, 2021, compared to $162.1 million at the end of 2020[17] - Long-term debt as of September 30, 2021, totaled $160.434 million, a decrease from $165.759 million as of December 31, 2020, reflecting a decline of approximately 3.99%[60] - The company had $178.668 million in total debt as of September 30, 2021, compared to $183.537 million as of December 31, 2020, showing a decrease of about 2.1%[60] - The company is in compliance with its debt covenants under the ABL Agreement as of September 30, 2021[67] Revenue Segments - The Offshore/Manufactured Products segment generated revenues of $69.0 million, down 12.3% from $78.7 million year-over-year[101] - Downhole Technologies segment revenues increased to $25.5 million from $18.7 million, representing a 36.5% growth[101] - Well Site Services revenues rose to $46.0 million, compared to $37.4 million, marking a 22.9% increase[101] - Revenues in the Offshore/Manufactured Products segment declined by $58.3 million, or 22%, in the first nine months of 2021 compared to the prior year, mainly due to reduced sales of connector and short-cycle products[193] - The Well Site Services segment experienced a revenue decrease of $33.6 million, or 21%, in the first nine months of 2021 compared to the prior year, attributed to the impact of the COVID-19 pandemic[198] Impairments and Expenses - The company incurred $19.7 million in depreciation and amortization expenses for Q3 2021, down from $24.3 million in Q3 2020[13] - The Company recorded impairments of goodwill amounting to $406.1 million in the nine months ended September 30, 2020, which were not present in 2021[26] - The Company recognized a $2.1 million non-cash inventory impairment charge in Q3 2021, compared to a $5.9 million charge in Q3 2020[160] - Selling, general and administrative expenses decreased by $1.3 million, or 6%, in Q3 2021 compared to Q3 2020[161] Market Conditions and Challenges - The company continues to face challenges due to the COVID-19 pandemic, impacting demand and pricing for its products and services[110] - The average price of Brent crude oil for the third quarter of 2021 was $73.51 per barrel, compared to $42.91 per barrel in the same quarter of 2020, indicating a significant price increase[128] - The U.S. energy industry is primarily focused on crude oil, with oil-directed drilling accounting for 81% of the total U.S. rig count as of September 30, 2021[136] - The company continues to monitor global economic conditions and commodity prices to manage its business effectively[139] Backlog and Future Expectations - As of September 30, 2021, the company had a remaining backlog of $153.2 million related to contracts with an expected duration of over one year[107] - Approximately 21% of the remaining backlog is expected to be recognized as revenue in Q4 2021, with an additional 38% in 2022[107] - Backlog in the Offshore/Manufactured Products segment totaled $249 million as of September 30, 2021, with Q3 2021 bookings of $106 million and a book-to-bill ratio of 1.5x[169]