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Published: 2021-07-28 17:07:37 ET
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EX-99.1 2 exhibit_991x8kx2qx2021.htm EX-99.1 OCEANEERING EXHIBIT 2Q 2021 EARNINGS RELEASE Document


Exhibit 99.1


Oceaneering Reports Second Quarter 2021 Results

HOUSTON, July 28, 2021 – Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today reported net income of $6.2 million, or $0.06 per share, on revenue of $498 million for the three months ended June 30, 2021. Adjusted net income was $10.4 million, or $0.10 per share, reflecting the impact of $3.2 million of pre-tax adjustments associated with a loss on the sale of an asset and foreign exchange losses recognized during the quarter, and $1.6 million of discrete tax adjustments, primarily due to changes in valuation allowances.

During the prior quarter ended March 31, 2021, Oceaneering reported a net loss of $9.4 million, or $(0.09) per share, on revenue of $438 million. Adjusted net income was $2.8 million, or $0.03 per share, reflecting the impact of $3.2 million of pre-tax adjustments associated with restructuring and other expenses and foreign exchange losses recognized during the quarter, and $9.6 million of discrete tax adjustments.

Adjusted operating income (loss), operating margins, net income (loss) and earnings (loss) per share, EBITDA and adjusted EBITDA (as well as EBITDA and adjusted EBITDA margins), and free cash flow are non-GAAP measures that exclude the impacts of certain identified items. Reconciliations to the corresponding GAAP measures are shown in the tables Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS), EBITDA and Adjusted EBITDA and Margins, Free Cash Flow, 2021 Adjusted EBITDA Estimates, Adjusted Operating Income (Loss) and Margins by Segment, and EBITDA and Adjusted EBITDA and Margins by Segment. These tables are included below under the caption Reconciliations of Non-GAAP to GAAP Financial Information.

Summary of Results
(in thousands, except per share amounts)
Three Months EndedSix Months Ended
Jun 30,Mar 31,Jun 30,
20212020202120212020
Revenue $498,199 $427,216 $437,553 $935,752 $963,884 
Gross Margin68,397 42,537 56,657 125,054 89,289 
Income (Loss) from Operations22,819 (5,182)13,783 36,602 (385,939)
Net Income (Loss)6,241 (24,788)(9,365)(3,124)(392,386)
 
Diluted Earnings (Loss) Per Share$0.06 $(0.25)$(0.09)$(0.03)$(3.96)

For the second quarter of 2021:
•Consolidated Adjusted EBITDA was $60.6 million
•Consolidated Adjusted Operating Income was $24.2 million
•Cash flow generated from operations was $50.5 million and free cash flow was $37.9 million
•Cash position increased by $13.3 million, from $443 million to $456 million
•We retired $30.5 million of our 2024 senior notes through open market repurchases

1

Roderick A. Larson, President and Chief Executive Officer of Oceaneering, stated, "Based on our first half financial performance and expectations for the second half of 2021, we are raising our adjusted EBITDA guidance to a range of $200 million to $225 million for the full year. This confidence, despite ongoing uncertainties associated with COVID-19, stems from positive client interactions, supportive oil price expectations, and growing backlog.

“Our second quarter 2021 results returned positive net income, and we produced adjusted EBITDA of $60.6 million, which exceeded consensus estimates. These positive results were attributable to the increased seasonal demand for our services and products in our energy businesses, growth in our government focused business segment, and forfeitures of long-term incentive accruals in Unallocated Expenses.

Segment Results:

“Sequentially, Subsea Robotics (SSR) revenue and adjusted operating income both increased as expected due to higher seasonal activity for ROV, survey, and tooling services. SSR adjusted EBITDA margin of 31% was relatively consistent with the first quarter of 2021, with pricing remaining stable across our SSR business lines.

"Second quarter 2021 ROV days on hire were sequentially higher for both drill support and vessel-based services as compared to first quarter 2021. Fleet utilization rose significantly, averaging 62% for the quarter, as compared to 53% for the first quarter. Our fleet use during the quarter was 58% in drill support and 42% in vessel-based activity, compared to 64% and 36%, respectively, during the first quarter. Second quarter 2021 average ROV revenue per day on hire of $8,056 was 2% higher than the first quarter of 2021.

"Manufactured Products (MP) second quarter 2021 adjusted operating income declined from the first quarter of 2021 on lower revenue. Sequentially, adjusted operating income margin decreased to 1% from 4% in the first quarter of 2021 as lower segment revenue decreased the ability to leverage our cost base. Our Manufactured Products backlog on June 30, 2021 was $315 million, compared to our March 31, 2021 backlog of $248 million. Our book-to-bill ratio was 1.3 for the six months ended June 30, 2021 and 0.8 for the trailing 12 months.

"The second quarter 2021 Offshore Projects Group (OPG) adjusted operating income declined as compared to the first quarter of 2021 despite a meaningful increase in revenue. Revenue benefited from ongoing field activities on several projects in Angola and a seasonal increase in intervention, maintenance and repair (IMR) work in the Gulf of Mexico. The sequential decline in adjusted operating income margin, from 10% in the first quarter of 2021 to 7% in the second quarter of 2021, was primarily due to unplanned downtime and related costs associated with the Angola riserless light well intervention project, which was partially offset by higher IMR activity levels in the Gulf of Mexico.

"Integrity Management and Digital Solutions (IMDS) sequential adjusted operating income was higher on a 19% increase in revenue. Higher seasonal activity and the start-up of several new projects contributed to the revenue increase. Continuing efficiency improvements, including utilization of field personnel, resulted in adjusted operating income margin increasing to 7% in the second quarter 2021 from 5% in the first quarter of 2021.

"Aerospace and Defense Technologies (ADTech) second quarter 2021 adjusted operating income improved from the first quarter of 2021 on a 20% increase in revenue. Adjusted operating income margin of 18% was better than forecast due to project mix and favorable rate-based adjustments. At the corporate level for the second quarter of 2021, adjusted Unallocated Expenses of $30.3 million
2

were slightly lower as compared to the first quarter of 2021 due to lower expense accruals related to incentive-based compensation forfeitures.

Third Quarter Outlook:

"For the third quarter, compared to the second quarter, we anticipate relatively flat activity and operating profitability in our SSR, Manufactured Products, and IMDS segments, lower activity levels and relatively flat operating profitability in our OPG segment, and lower activity levels and lower operating profitability in our ADTech segment. Unallocated Expenses are forecast to be in the mid-$30 million range due primarily to increased information technology infrastructure costs and normalized accruals for incentive-based compensation. On a consolidated basis, we expect a sequential decline in third quarter 2021 results, with adjusted EBITDA in the range of $50 million to $55 million on slightly lower revenue.

Cash and Liquidity:

"Our cash balance of $456 million, coupled with improved debt markets and our expectation to generate meaningful free cash flow in 2021, will provide us with improved flexibility to address our 2024 debt maturity while we continue to leverage our technologies and core competencies into energy transition opportunities."

This release contains "forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as to the expectations, beliefs, future expected business and financial performance and prospects of Oceaneering. More specifically, the forward-looking statements in this press release include: the statements concerning Oceaneering’s expectations about: full year 2021 adjusted EBITDA range and the bases for that range; characterization of demand or activity levels as seasonal; references to backlog, to the extent backlog may be an indicator of future revenue or profitability; anticipated third quarter segment activity levels and operating profitability as compared to second quarter 2021; forecasted Unallocated Expenses and the bases for that forecast; expectations about consolidated third quarter 2021 sequential results and revenue, and adjusted EBITDA range; characterization of debt markets and expectation to generate meaningful free cash flow in 2021; and the expectation of improved flexibility to address the 2024 debt maturity.

The forward-looking statements included in this release are based on our current expectations and are subject to certain risks, assumptions, trends and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements. Among the factors that could cause actual results to differ materially include: factors affecting the level of activity in the oil and gas industry, including worldwide demand for and prices of oil and natural gas, oil and natural gas production growth and the supply and demand of offshore drilling rigs; actions by members of OPEC and other oil exporting countries; decisions about offshore developments to be made by oil and gas exploration, development and production companies; the use of subsea completions and our ability to capture associated market share; general economic and business conditions and industry trends; the strength of the industry segments in which we are involved; the continuing effects of the COVID-19 pandemic and the governmental, customer, supplier, and other responses thereto; cancellations of contracts, change orders and other contractual modifications, force majeure declarations and the exercise of contractual suspension rights and the resulting adjustments to our backlog; collections from our customers; our future financial performance, including as a result of the availability, terms and deployment of capital; the consequences of significant changes in currency exchange rates; the volatility and uncertainties of credit markets; changes in tax laws, regulations and interpretation by taxing authorities; changes in, or our ability to comply with, other laws and governmental regulations, including those relating to the environment; the continued availability of qualified personnel; our ability to obtain raw materials and parts on a timely basis and, in some cases, from limited sources; operating risks normally incident to offshore exploration, development and production operations; hurricanes and other adverse weather and sea conditions; cost and time associated with drydocking of our vessels; the highly competitive nature of our businesses; adverse outcomes from legal or regulatory proceedings; the risks associated with integrating businesses we acquire; rapid technological changes; and social, political, military and economic situations in foreign countries where we do business and the possibilities of civil disturbances, war, other armed conflicts or terrorist attacks. For a more complete discussion of these and other risk factors, please see Oceaneering’s latest annual report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements.
3

Except to the extent required by applicable law, Oceaneering undertakes no obligation to update or revise any forward-looking statement.


Oceaneering is a global provider of engineered services and products, primarily to the offshore energy industry. Through the use of its applied technology expertise, Oceaneering also serves the defense, aerospace, and entertainment industries.

For more information on Oceaneering, please visit www.oceaneering.com.

Contact:
Mark Peterson
Vice President, Corporate Development and Investor Relations
Oceaneering International, Inc.
713-329-4507
investorrelations@oceaneering.com

- Tables follow on next page -
4

OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Jun 30, 2021Dec 31, 2020
(in thousands)
ASSETS
Current assets (including cash and cash equivalents of $456,087 and $452,016)
$1,228,876 $1,170,263 
Net property and equipment537,909 591,107 
Other assets294,764 284,472 
Total Assets$2,061,549 $2,045,842 
LIABILITIES AND EQUITY
Current liabilities$479,523 $437,116 
Long-term debt773,423 805,251 
Other long-term liabilities245,871 245,318 
Equity562,732 558,157 
Total Liabilities and Equity$2,061,549 $2,045,842 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months EndedFor the Six Months Ended
Jun 30, 2021Jun 30, 2020Mar 31, 2021Jun 30, 2021Jun 30, 2020
(in thousands, except per share amounts)
Revenue$498,199 $427,216 $437,553 $935,752 $963,884 
Cost of services and products429,802 384,679 380,896 810,698 874,595 
Gross margin68,397 42,537 56,657 125,054 89,289 
Selling, general and administrative expense45,578 47,719 42,874 88,452 103,460 
Long-lived assets impairments— — — — 68,763 
Goodwill impairment— — — — 303,005 
Income (loss) from operations22,819 (5,182)13,783 36,602 (385,939)
Interest income683 511 519 1,202 1,788 
Interest expense, net of amounts capitalized(9,729)(11,611)(10,407)(20,136)(24,073)
Equity in income (losses) of unconsolidated affiliates378 674 534 912 1,871 
Other income (expense), net(1,955)(3,660)(1,453)(3,408)(10,788)
Income (loss) before income taxes12,196 (19,268)2,976 15,172 (417,141)
Provision (benefit) for income taxes 5,955 5,520 12,341 18,296 (24,755)
Net Income (Loss)$6,241 $(24,788)$(9,365)$(3,124)$(392,386)
Weighted average diluted shares outstanding100,847 99,273 99,461 99,613 99,164 
Diluted earnings (loss) per share$0.06 $(0.25)$(0.09)$(0.03)$(3.96)
The above Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations should be read in conjunction with the Company's latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q.
5

SEGMENT INFORMATION
For the Three Months EndedFor the Six Months Ended
Jun 30, 2021Jun 30, 2020 *Mar 31, 2021Jun 30, 2021Jun 30, 2020 *
($ in thousands)
Subsea Robotics
Revenue$141,371 $119,234 $119,119 $260,490 $259,004 
Gross margin$31,767 $21,324 $24,078 $55,845 $40,797 
Operating income (loss)$21,710 $11,662 $14,619 $36,329 $(82,421)
Operating income (loss) %15 %10 %12 %14 %(32)%
ROV days available22,750 22,750 22,469 45,219 45,500 
ROV days utilized14,005 13,501 11,887 25,892 28,354 
ROV utilization62 %59 %53 %57 %62 %
Manufactured Products
Revenue$79,127 $100,570 $86,825 $165,952 $267,104 
Gross margin$8,391 $13,679 $10,004 $18,395 $31,628 
Operating income (loss)$790 $3,865 $2,753 $3,543 $(62,273)
Operating income (loss) %1 %4 %3 %2 %(23)%
Backlog at end of period$315,000 $380,000 $248,000 $315,000 $380,000 
Offshore Projects Group
Revenue$107,951 $73,840 $89,234 $197,185 $148,094 
Gross margin$14,566 $3,170 $15,111 $29,677 $5,265 
Operating income (loss)$7,996 $(4,135)$8,813 $16,809 $(83,458)
Operating income (loss) %7 %(6)%10 %9 %(56)%
Integrity Management & Digital Solutions
Revenue$64,070 $53,969 $54,048 $118,118 $118,698 
Gross margin$10,462 $5,455 $8,209 $18,671 $15,247 
Operating income (loss)$4,721 $(1,825)$2,474 $7,195 $(123,360)
Operating income (loss) %7 %(3)%5 %6 %(104)%
Aerospace and Defense Technologies
Revenue$105,680 $79,603 $88,327 $194,007 $170,984 
Gross margin$24,603 $17,313 $22,110 $46,713 $34,798 
Operating income (loss)$19,340 $13,430 $16,839 $36,179 $26,401 
Operating income (loss) %18 %17 %19 %19 %15 %
Unallocated Expenses
Gross margin$(21,392)$(18,404)$(22,855)$(44,247)$(38,446)
Operating income (loss)$(31,738)$(28,179)$(31,715)$(63,453)$(60,828)
Total
Revenue$498,199 $427,216 $437,553 $935,752 $963,884 
Gross margin$68,397 $42,537 $56,657 $125,054 $89,289 
Operating income (loss)$22,819 $(5,182)$13,783 $36,602 $(385,939)
Operating income (loss) %5 %(1)%3 %4 %(40)%
The above Segment Information does not include adjustments for non-recurring transactions. See the tables below under the caption "Reconciliations of Non-GAAP to GAAP Financial Information" for financial measures that our management considers in evaluating our ongoing operations.
* Recast to reflect segment changes.
6


SELECTED CASH FLOW INFORMATION
For the Three Months EndedFor the Six Months Ended
Jun 30, 2021Jun 30, 2020Mar 31, 2021Jun 30, 2021Jun 30, 2020
(in thousands)
Capital Expenditures, including Acquisitions$12,629 $10,631 $10,699 $23,328 $37,860 
For the Three Months EndedFor the Six Months Ended
Jun 30, 2021Jun 30, 2020 *Mar 31, 2021Jun 30, 2021Jun 30, 2020 *
(in thousands)
Depreciation and amortization:
Energy Services and Products
Subsea Robotics$22,436 $25,080 $22,952 $45,388 $164,267 
Manufactured Products3,248 3,587 3,227 6,475 19,551 
Offshore Projects Group6,862 8,255 7,125 13,987 83,162 
Integrity Management & Digital Solutions1,091 757 1,124 2,215 125,100 
Total Energy Services and Products33,637 37,679 34,428 68,065 392,080 
Aerospace and Defense Technologies1,404 658 1,276 2,680 1,345 
Unallocated Expenses184 361 767 951 1,469 
 Total Depreciation and Amortization$35,225 $38,698 $36,471 $71,696 $394,894 
Goodwill and long-lived asset impairment expense, reflected in the depreciation and amortization expense above, was $310 million
in the six months ended June 30, 2020.
* Recast to reflect segment changes.
7


RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION

In addition to financial results determined in accordance with U.S. generally accepted accounting principles ("GAAP"), this Press Release also includes non-GAAP financial measures (as defined under SEC Regulation G). We have included Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share, each of which excludes the effects of certain specified items, as set forth in the tables that follow. As a result, these amounts are non-GAAP financial measures. We believe these are useful measures for investors to review because they provide consistent measures of the underlying results of our ongoing business. Furthermore, our management uses these measures as measures of the performance of our operations. We have also included disclosures of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), EBITDA Margins, 2021 Adjusted EBITDA Estimates, and Free Cash Flow, as well as the following by segment: Adjusted Operating Income and Margins, EBITDA, EBITDA Margins, Adjusted EBITDA and Adjusted EBITDA Margins. We define EBITDA Margin as EBITDA divided by revenue. Adjusted EBITDA and Adjusted EBITDA Margins as well as Adjusted Operating Income and Margin and related information by segment exclude the effects of certain specified items, as set forth in the tables that follow. EBITDA and EBITDA Margins, Adjusted EBITDA and Adjusted EBITDA Margins, and Adjusted Operating Income and Margin and related information by segment are each non-GAAP financial measures. We define Free Cash Flow as cash flow provided by operating activities less organic capital expenditures (i.e., purchases of property and equipment other than those in business acquisitions). We have included these disclosures in this press release because EBITDA, EBITDA Margins and Free Cash Flow are widely used by investors for valuation and comparing our financial performance with the performance of other companies in our industry, and the adjusted amounts thereof (as well as Adjusted Operating Income and Margin by Segment) provide more consistent measures than the unadjusted amounts. Furthermore, our management uses these measures for purposes of evaluating our financial performance. Our presentation of EBITDA, EBITDA Margins and Free Cash Flow (and the Adjusted amounts thereof) may not be comparable to similarly titled measures other companies report. Non-GAAP financial measures should be viewed in addition to and not as substitutes for our reported operating results, cash flows or any other measure prepared and reported in accordance with GAAP. The tables that follow provide reconciliations of the non-GAAP measures used in this press release to the most directly comparable GAAP measures.
8

RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
(continued)
Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS)
For the Three Months Ended
Jun 30, 2021Jun 30, 2020Mar 31, 2021
Net Income (Loss)Diluted EPSNet Income (Loss)Diluted EPSNet Income (Loss)Diluted EPS
(in thousands, except per share amounts)
Net income (loss) and diluted EPS as reported in accordance with GAAP$6,241 $0.06 $(24,788)$(0.25)$(9,365)$(0.09)
Pre-tax adjustments for the effects of:
Loss on sale of asset1,415 — — 
Restructuring expenses and other— 5,708 1,308 
Foreign currency (gains) losses1,800 3,908 1,861 
Total pre-tax adjustments3,215 9,616 3,169 
Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods(674)(2,331)(605)
Discrete tax items:
    Share-based compensation(4)16 577 
    Uncertain tax positions186 735 (16)
    U.S. CARES Act— 1,159 — 
    Valuation allowances3,525 3,245 6,758 
    Other(2,136)(1,887)2,275 
Total discrete tax adjustments1,571 3,268 9,594 
Total of adjustments4,112 10,553 12,158 
Adjusted Net Income (Loss)$10,353 $0.10 $(14,235)$(0.14)$2,793 $0.03 
Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss)100,847 99,273 100,480 



9

RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
(continued)
Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS)
For the Six Months Ended
 Jun 30, 2021Jun 30, 2020
  Net Income (Loss)Diluted EPSNet Income (Loss)Diluted EPS
(in thousands, except per share amounts)
Net income (loss) and diluted EPS as reported in accordance with GAAP  $(3,124)$(0.03)$(392,386)$(3.96)
Pre-tax adjustments for the effects of:
Long-lived assets impairments — 68,763 
Long-lived assets write-offs — 7,328 
Goodwill impairment — 303,005 
Loss on sale of asset1,415 — 
Restructuring expenses and other 1,308 12,338 
Foreign currency (gains) losses 3,661 10,958 
Total pre-tax adjustments 6,384 402,392 
Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods (1,279)(47,686)
Discrete tax items:
Share-based compensation 573 1,003 
Uncertain tax positions 170 (8,917)
U.S. CARES Act — (32,625)
Valuation allowances 10,283 68,453 
Other 139 (937)
Total discrete tax adjustments 11,165 26,977 
Total of adjustments 16,270 381,683 
Adjusted Net Income (Loss)  $13,146 $0.13 $(10,703)$(0.11)
Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss)  100,672 99,164 
10

RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
(continued)
EBITDA and Adjusted EBITDA and Margins
For the Three Months EndedFor the Six Months Ended
Jun 30, 2021Jun 30, 2020Mar 31, 2021Jun 30, 2021Jun 30, 2020
($ in thousands)
Net income (loss)$6,241 $(24,788)$(9,365)$(3,124)$(392,386)
Depreciation and amortization35,225 38,698 36,471 71,696 394,894 
Subtotal41,466 13,910 27,106 68,572 2,508 
Interest expense, net of interest income9,046 11,100 9,888 18,934 22,285 
Amortization included in interest expense907 333 303 1,210 — 
Provision (benefit) for income taxes 5,955 5,520 12,341 18,296 (24,755)
EBITDA57,374 30,863 49,638 107,012 38 
Adjustments for the effects of:
Long-lived assets impairments— — — — 68,763 
Loss on sale of asset1,415 — — 1,415 — 
Restructuring expenses and other— 5,708 1,308 1,308 12,338 
Foreign currency (gains) losses1,800 3,908 1,861 3,661 10,958 
Total of adjustments3,215 9,616 3,169 6,384 92,059 
Adjusted EBITDA$60,589 $40,479 $52,807 $113,396 $92,097 
Revenue$498,199 $427,216 $437,553 $935,752 $963,884 
EBITDA margin %12 %7 %11 %11 %— %
Adjusted EBITDA margin %12 %9 %12 %12 %10 %


11


RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
(continued)
Free Cash Flow
For the Three Months EndedFor the Six Months Ended
Jun 30, 2021Jun 30, 2020Mar 31, 2021Jun 30, 2021Jun 30, 2020
(in thousands)
Net Income (loss)$6,241 $(24,788)$(9,365)$(3,124)$(392,386)
Non-cash adjustments:
Depreciation and amortization, including goodwill impairment35,225 38,698 36,471 71,696 394,894 
Long-lived asset impairments— — — — 68,763 
Other non-cash (1,294)41 (365)(1,659)(4,585)
Other increases (decreases) in cash from operating activities10,374 23,567 (28,464)(18,090)(61,318)
Cash flow provided by (used in) operating activities50,546 37,518 (1,723)48,823 5,368 
Purchases of property and equipment(12,629)(10,631)(10,699)(23,328)(37,860)
Free Cash Flow$37,917 $26,887 $(12,422)$25,495 $(32,492)
2021 Adjusted EBITDA Estimates
For the Three Months Ended
September 30, 2021
LowHigh
(in thousands)
Income (loss) before income taxes$4,000 $7,000 
Depreciation and amortization36,000 38,000 
Subtotal40,000 45,000 
Interest expense, net of interest income10,000 10,000 
Adjusted EBITDA$50,000 $55,000 
For the Year Ended
December 31, 2021
LowHigh
(in thousands)
Income (loss) before income taxes$15,000 $35,000 
Depreciation and amortization145,000 150,000 
Subtotal160,000 185,000 
Interest expense, net of interest income40,000 40,000 
Adjusted EBITDA$200,000 $225,000 

12

RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
(continued)
Adjusted Operating Income (Loss) and Margins by Segment
For the Three Months Ended June 30, 2021
SSRMPOPGIMDSADTechUnallocated ExpensesTotal
($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP$21,710 $790 $7,996 $4,721 $19,340 $(31,738)$22,819 
Adjustments for the effects of:
Loss on sale of asset— — — — — 1,415 1,415 
Total of adjustments— — — — — 1,415 1,415 
Adjusted Operating Income (Loss)$21,710 $790 $7,996 $4,721 $19,340 $(30,323)$24,234 
Revenue$141,371 $79,127 $107,951 $64,070 $105,680 $498,199 
Operating income (loss) % as reported in accordance with GAAP15 %1 %7 %7 %18 %5 %
Operating income (loss) % using adjusted amounts15 %1 %7 %7 %18 %5 %
For the Three Months Ended June 30, 2020 *
SSRMPOPGIMDSADTechUnallocated ExpensesTotal
($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP$11,662 $3,865 $(4,135)$(1,825)$13,430 $(28,179)$(5,182)
Adjustments for the effects of:
Restructuring expenses and other1,380 1,212 1,405 1,536 — 175 5,708 
Total of adjustments1,380 1,212 1,405 1,536 — 175 5,708 
Adjusted Operating Income (Loss)$13,042 $5,077 $(2,730)$(289)$13,430 $(28,004)$526 
Revenue$119,234 $100,570 $73,840 $53,969 $79,603 $427,216 
Operating income (loss) % as reported in accordance with GAAP10 %4 %(6)%(3)%17 %(1)%
Operating income (loss) % using adjusted amounts11 %5 %(4)%(1)%17 %— %
* Recast to reflect segment changes.
13

RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
(continued)
Adjusted Operating Income (Loss) and Margins by Segment
For the Three Months Ended March 31, 2021
SSRMPOPGIMDSADTechUnallocated ExpensesTotal
($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP$14,619 $2,753 $8,813 $2,474 $16,839 $(31,715)$13,783 
Adjustments for the effects of:
Restructuring expenses and other395 537 149 217 10 — 1,308 
Total of adjustments395 537 149 217 10 — 1,308 
Adjusted Operating Income (Loss)$15,014 $3,290 $8,962 $2,691 $16,849 $(31,715)$15,091 
Revenue$119,119 $86,825 $89,234 $54,048 $88,327 $437,553 
Operating income (loss) % as reported in accordance with GAAP12 %3 %10 %5 %19 %3 %
Operating income (loss) % using adjusted amounts13 %4 %10 %5 %19 %3 %
14

RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
(continued)
Adjusted Operating Income (Loss) and Margins by Segment
For the Six Months Ended June 30, 2021
SSRMPOPGIMDSADTechUnallocated ExpensesTotal
($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP$36,329 $3,543 $16,809 $7,195 $36,179 $(63,453)$36,602 
Adjustments for the effects of:
Loss on sale of asset— — — — — 1,415 1,415 
Restructuring expenses and other395 537 149 217 10 — 1,308 
Total of adjustments395 537 149 217 10 1,415 2,723 
Adjusted Operating Income (Loss)$36,724 $4,080 $16,958 $7,412 $36,189 $(62,038)$39,325 
Revenue$260,490 $165,952 $197,185 $118,118 $194,007 $935,752 
Operating income (loss) % as reported in accordance with GAAP14 %2 %9 %6 %19 %4 %
Operating income (loss) % using adjusted amounts14 %2 %9 %6 %19 %4 %
For the Six Months Ended June 30, 2020 *
SSRMPOPGIMDSADTechUnallocated ExpensesTotal
($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP$(82,421)$(62,273)$(83,458)$(123,360)$26,401 $(60,828)$(385,939)
Adjustments for the effects of:
Long-lived assets impairments— 61,074 7,522 167 — — 68,763 
Long-lived assets write-offs7,328 — — — — — 7,328 
Goodwill impairment102,118 11,388 66,285 123,214 — — 303,005 
Restructuring expenses and other2,299 3,196 2,621 3,767 — 455 12,338 
Total of adjustments111,745 75,658 76,428 127,148 — 455 391,434 
Adjusted Operating Income (Loss)$29,324 $13,385 $(7,030)$3,788 $26,401 $(60,373)$5,495 
Revenue$259,004 $267,104 $148,094 $118,698 $170,984 $963,884 
Operating income (loss) % as reported in accordance with GAAP(32)%(23)%(56)%(104)%15 %(40)%
Operating income (loss) % using adjusted amounts11 %5 %(5)%3 %15 %1 %
* Recast to reflect segment changes.
15

RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
(continued)
EBITDA and Adjusted EBITDA and Margins by Segment
For the Three Months Ended June 30, 2021
SSRMPOPGIMDSADTechUnallocated Expenses and otherTotal
($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP$21,710 $790 $7,996 $4,721 $19,340 $(31,738)$22,819 
Adjustments for the effects of:
Depreciation and amortization22,436 3,248 6,862 1,091 1,404 184 35,225 
Other pre-tax— — — — — (670)(670)
EBITDA44,146 4,038 14,858 5,812 20,744 (32,224)57,374 
Adjustments for the effects of:
Loss on sale of asset— — — — — 1,415 1,415 
Foreign currency (gains) losses— — — — — 1,800 1,800 
Total of adjustments— — — — — 3,215 3,215 
Adjusted EBITDA$44,146 $4,038 $14,858 $5,812 $20,744 $(29,009)$60,589 
Revenue$141,371 $79,127 $107,951 $64,070 $105,680 $498,199 
Operating income (loss) % as reported in accordance with GAAP15 %1 %7 %7 %18 %5 %
EBITDA Margin31 %5 %14 %9 %20 %12 %
Adjusted EBITDA Margin31 %5 %14 %9 %20 %12 %
For the Three Months Ended June 30, 2020 *
SSRMPOPGIMDSADTechUnallocated Expenses and otherTotal
($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP$11,662 $3,865 $(4,135)$(1,825)$13,430 $(28,179)$(5,182)
Adjustments for the effects of:
Depreciation and amortization25,080 3,587 8,255 757 658 361 38,698 
Other pre-tax— — — — — (2,653)(2,653)
EBITDA36,742 7,452 4,120 (1,068)14,088 (30,471)30,863 
Adjustments for the effects of:
Restructuring expenses and other1,380 1,212 1,405 1,536 — 175 5,708 
Foreign currency (gains) losses— — — — — 3,908 3,908 
Total of adjustments1,380 1,212 1,405 1,536 — 4,083 9,616 
Adjusted EBITDA$38,122 $8,664 $5,525 $468 $14,088 $(26,388)$40,479 
Revenue$119,234 $100,570 $73,840 $53,969 $79,603 $427,216 
Operating income (loss) % as reported in accordance with GAAP10 %4 %(6)%(3)%17 %(1)%
EBITDA Margin31 %7 %6 %(2)%18 %7 %
Adjusted EBITDA Margin32 %9 %7 %1 %18 %9 %
* Recast to reflect segment changes.
16

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RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
(continued)
EBITDA and Adjusted EBITDA and Margins by Segment
For the Three Months Ended March 31, 2021
SSRMPOPGIMDSADTechUnallocated Expenses and otherTotal
($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP$14,619 $2,753 $8,813 $2,474 $16,839 $(31,715)$13,783 
Adjustments for the effects of:
Depreciation and amortization22,952 3,227 7,125 1,124 1,276 767 36,471 
Other pre-tax— — — — — (616)(616)
EBITDA37,571 5,980 15,938 3,598 18,115 (31,564)49,638 
Adjustments for the effects of:
Restructuring expenses and other395 537 149 217 10 — 1,308 
Foreign currency (gains) losses— — — — — 1,861 1,861 
Total of adjustments395 537 149 217 10 1,861 3,169 
Adjusted EBITDA$37,966 $6,517 $16,087 $3,815 $18,125 $(29,703)$52,807 
Revenue$119,119 $86,825 $89,234 $54,048 $88,327 $437,553 
Operating income (loss) % as reported in accordance with GAAP12 %3 %10 %5 %19 %3 %
EBITDA Margin32 %7 %18 %7 %21 %11 %
Adjusted EBITDA Margin32 %8 %18 %7 %21 %12 %


17

RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
(continued)
EBITDA and Adjusted EBITDA and Margins by Segment
For the Six Months Ended June 30, 2021
SSRMPOPGIMDSADTechUnallocated Expenses and otherTotal
($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP$36,329 $3,543 $16,809 $7,195 $36,179 $(63,453)$36,602 
Adjustments for the effects of:
Depreciation and amortization45,388 6,475 13,987 2,215 2,680 951 71,696 
Other pre-tax— — — — — (1,286)(1,286)
EBITDA81,717 10,018 30,796 9,410 38,859 (63,788)107,012 
Adjustments for the effects of:
Loss on sale of asset— — — — — 1,415 1,415 
Restructuring expenses and other395 537 149 217 10 — 1,308 
Foreign currency (gains) losses— — — — — 3,661 3,661 
Total of adjustments395 537 149 217 10 5,076 6,384 
Adjusted EBITDA$82,112 $10,555 $30,945 $9,627 $38,869 $(58,712)$113,396 
Revenue$260,490 $165,952 $197,185 $118,118 $194,007 $935,752 
Operating income (loss) % as reported in accordance with GAAP14 %2 %9 %6 %19 %4 %
EBITDA Margin31 %6 %16 %8 %20 %11 %
Adjusted EBITDA Margin32 %6 %16 %8 %20 %12 %
For the Six Months Ended June 30, 2020 *
SSRMPOPGIMDSADTechUnallocated Expenses and otherTotal
($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP$(82,421)$(62,273)$(83,458)$(123,360)$26,401 $(60,828)$(385,939)
Adjustments for the effects of:
Depreciation and amortization164,267 19,551 83,162 125,100 1,345 1,469 394,894 
Other pre-tax— — — — — (8,917)(8,917)
EBITDA81,846 (42,722)(296)1,740 27,746 (68,276)38 
Adjustments for the effects of:
Long-lived assets impairments— 61,074 7,522 167 — — 68,763 
Restructuring expenses and other2,299 3,196 2,621 3,767 — 455 12,338 
Foreign currency (gains) losses— — — — — 10,958 10,958 
Total of adjustments2,299 64,270 10,143 3,934 — 11,413 92,059 
Adjusted EBITDA$84,145 $21,548 $9,847 $5,674 $27,746 $(56,863)$92,097 
Revenue$259,004 $267,104 $148,094 $118,698 $170,984 $963,884 
Operating income (loss) % as reported in accordance with GAAP(32)%(23)%(56)%(104)%15 %(40)%
EBITDA Margin32 %(16)%— %1 %16 %— %
Adjusted EBITDA Margin32 %8 %7 %5 %16 %10 %
* Recast to reflect segment changes.
18