Civeo(US:CVEO)2021-04-30 19:22Financial Data and Key Metrics Changes - Civeo reported total revenues of $125.4 million in Q1 2021, with a net loss of $10 million or $0.70 per diluted share [12] - Adjusted EBITDA was $16.2 million, with free cash flow of $16.1 million, and a leverage ratio of 2.1x, remaining flat sequentially [6][17] - The company repaid $14.6 million of debt during the quarter, reducing total debt outstanding to $238.1 million [6][17] Business Line Data and Key Metrics Changes - Canadian segment revenue was $61.9 million, down from $79.3 million in Q1 2020, with adjusted EBITDA of $10.8 million, a decrease from $11.4 million [13] - Australian segment revenue increased to $59.6 million from $49.1 million in Q1 2020, but adjusted EBITDA decreased to $12.8 million from $16.2 million [15] - U.S. segment revenue fell to $3.9 million from $10.3 million in Q1 2020, with negative adjusted EBITDA of $1.2 million [16] Market Data and Key Metrics Changes - Canadian segment occupancy improved sequentially despite public health orders, while Australian segment faced declines due to customer downtime and labor supply issues [9][10] - The U.S. segment is beginning to see signs of recovery with oil and gas operators selectively adding rigs in response to higher commodity prices [22] Company Strategy and Development Direction - The company aims to prioritize employee and guest safety, maximize free cash flow, reduce debt, and manage costs without compromising service quality [11][23] - Full year 2021 revenue guidance was adjusted to between $555 million to $580 million, with adjusted EBITDA expected to range from $90 million to $100 million [18] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the remainder of 2021, highlighting potential improvements in Canadian and Australian segments due to favorable commodity prices and operational activities [20][21] - The company remains focused on resolving labor shortages in Australia and anticipates a stronger second half of the year [31] Other Important Information - Capital expenditures for Q1 2021 were $3.4 million, primarily for maintenance needs [17] - Total liquidity as of March 31, 2021, was approximately $112.4 million [17] Q&A Session Summary Question: Thoughts on capital allocation and potential stock buybacks - Management indicated that discussions on capital allocation are ongoing, with a focus on seeing second quarter results and continued debt reduction before considering stock buybacks [26][27] Question: Historical patterns of EBITDA allocation across quarters - Management confirmed that historical patterns remain consistent, with 60% to 70% of EBITDA typically generated in the second and third quarters [28] Question: Update on Action acquisition and outlook for Australia - Management reported challenges in the Action business due to labor availability but remains cautiously optimistic for resolution in the second quarter [30] - The outlook for met coal activity in Australia is cautiously optimistic, with no significant impact from the Chinese trade dispute observed so far [32]