HOUSTON, February 22, 2024 – Oceaneering International, Inc. ("Oceaneering") (NYSE:OII) today reported net income of $44.5 million, or $0.43 per share, on revenue of $655 million for the three months ended December 31, 2023. Adjusted net income was $19.4 million, or $0.19 per share, reflecting the impact of $(23.7) million benefit from discrete tax adjustments, primarily due to changes in valuation allowances, uncertain tax positions and prior year estimates; $2.3 million of pre-tax adjustments associated with foreign exchange gains recognized during the quarter; and $0.9 million tax effect on adjustments associated with foreign exchange gains.
Adjusted 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, 2024 EBITDA and 2024 Free Cash Flow Estimates, 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)
For the Three Months Ended
For the Year Ended
Dec 31,
Sep 30,
Dec 31,
2023
2022
2023
2023
2022
Revenue
$
654,629
$
536,223
$
635,180
$
2,424,706
$
2,066,084
Gross Margin
105,629
90,102
114,697
398,971
307,377
Income (Loss) from Operations
47,450
42,177
57,929
181,328
110,863
Net Income (Loss)
44,529
23,128
29,812
97,403
25,941
Diluted Earnings (Loss) Per Share
$
0.43
$
0.23
$
0.29
$
0.95
$
0.26
For the fourth quarter of 2023:
•Net income was $44.5 million and consolidated adjusted EBITDA was $75.1 million
•Cash flow provided by operating activities was $153 million and free cash flow was $119 million, with an ending cash position of $462 million
•2024 debt maturity was eliminated through a series of transactions
•Secured consolidated order intake with expected contract value of $739 million
As of December 31, 2023:
•Remotely Operated Vehicles (ROV): fleet count was 250; Q4 utilization was 68%; and Q4 average revenue per day on hire was $9,618
•Manufactured Products backlog was $622 million
•Nearest debt maturity is $500 million in February 2028
1
Guidance for 2024:
•Net income is expected in the range of $125 million to $155 million
•Consolidated EBITDA is expected in the range of $330 million to $380 million
•Free cash flow generation is expected in the range of $110 million to $150 million
•Capital expenditures are expected in the range of $110 million to $130 million
•First quarter consolidated EBITDA is expected in the range of $50 million to $60 million
Roderick A. Larson, President and Chief Executive Officer of Oceaneering, stated, "2023 consolidated revenue increased 17% over 2022 to $2.4 billion, driving our fifth consecutive year of improved adjusted EBITDA performance. For the full year of 2023, our adjusted EBITDA of $289 million was slightly above the midpoint of our most recent guidance range and we generated $109 million of free cash flow. All of our operating segments, except for Integrity Management and Digital Solutions (IMDS), achieved improved sequential annual operating results, led by Subsea Robotics (SSR) and Manufactured Products. I am grateful to our Oceaneers for their dedication and commitment to excellence in delivering these results.
"2023 cash flow from operations increased to $210 million, compared to $121 million in 2022. Capital expenditures also increased, from $81.0 million in 2022 to $101 million in 2023. Free cash flow increased to $109 million, compared to $39.8 million in 2022. Our ability to generate substantial levels of free cash flow over the last several years enabled us to retire our 2024 senior notes during the year, using proceeds from our 2023 debt offering together with cash on hand. As a result, we reduced Oceaneering’s long-term debt from $700 million at the end of 2022 to $500 million at the end of 2023 and extended the term of our credit facility to April 2027. As reflected in the 2024 guidance above, we expect to see continuing improvement in our financial performance and condition, including another year of meaningful free cash flow generation.
“Our fourth quarter 2023 performance produced consolidated adjusted EBITDA of $75.1 million, which was above the mid-point of the implied guidance range provided at the beginning of the quarter and slightly above consensus estimates."
Fourth Quarter 2023 Segment Results
SSR's fourth quarter revenue and adjusted EBITDA represented its best quarter in 2023. Sequentially, operating income and revenue improved slightly, with lower activity levels in the ROV and survey businesses being offset by continuing improvement in ROV pricing. As a result, SSR EBITDA margin of 32% during the fourth quarter was above the 31% achieved during the third quarter of 2023. Revenue split was 76% from the ROV business and 24% from the combined tooling and survey businesses.
ROV days on hire declined 2% as compared to the third quarter of 2023. Increased drill support days were more than offset by lower vessel-based days due to normal seasonality. Fourth quarter average ROV revenue per day on hire of $9,618 was 3% higher than in the third quarter of 2023.
Manufactured Products revenue of $133 million was 8% higher than in the third quarter of 2023 on increased product throughput in Oceaneering Mobile Robotics. Operating income and margin of $5.4 million and 4%, respectively, declined sequentially due to changes in product mix. As recently announced, Manufactured Products had solid bookings during the fourth quarter of approximately $200 million and ended 2023 with a backlog of $622 million, compared to the September 30, 2023 backlog of $556 million. The book-to-bill ratio was 1.31 for the full year of 2023.
Offshore Projects Group (OPG) operating income declined sequentially on higher revenue. Revenue benefited from the carryover of international work from the third quarter along with more seasonal activity in the Gulf of Mexico than originally expected. Operating income margin of 9% declined from
2
18% achieved in the third quarter of 2023, due primarily to changes in project mix and pricing for Gulf of Mexico work.
IMDS revenue and operating income were essentially flat period over period. Operating income margin of 5% for the fourth quarter was flat as compared to the third quarter of 2023.
Aerospace and Defense Technologies (ADTech) fourth quarter revenue and operating income declined from the third quarter of 2023. ADTech operating income margin declined sequentially to 12%, due to changes in project mix.
Fourth quarter 2023 Unallocated Expenses of $37.9 million were lower than the third quarter.
Full Year and First Quarter 2024 Guidance
2024 financial results are forecasted to improve year over year based on 2023 year-end backlog and continuing supportive market fundamentals. As outlined in the guidance above, EBITDA is expected to be in the range of $330 million to $380 million, with increased EBITDA and operating income from each operating segment, including higher margins in the SSR and OPG segments, and relatively stable margins in the Manufactured Products, IMDS and ADTech segments. At the midpoint of this range, 2024 EBITDA would represent a 23% increase over 2023 adjusted EBITDA. Free cash flow for 2024 is expected to be in the range of $110 million to $150 million.
For the first quarter 2024, EBITDA is forecasted to be in the range of $50 million to $60 million. The decrease from the fourth quarter of 2023 is primarily due to the timing of vessel charters and two vessels undergoing planned, regulatory dry docks during the first quarter, leading to fewer available vessel days in the first quarter for OPG.
Conference Call Details
Oceaneering has scheduled a conference call and webcast on Friday, February 23, 2024 at 10:00 a.m. Central Time, to discuss its results for the fourth quarter and full year 2023, as well as more detailed guidance for the full year and first quarter 2024. Interested parties may listen to the call through a webcast link posted in the Investor Relations section of Oceaneering's website. A replay of the conference call will be made available on the website approximately two hours following the conclusion of the live call.
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: full-year 2024 guidance ranges for net income, consolidated EBITDA, free cash flow generation, capital expenditures and Unallocated Expenses; first quarter 2024 guidance for consolidated EBITDA, operating segment revenues, operating results and operating profitability; full-year 2024 sequential activity and operating performance across each operating segment, led by SSR and OPG; expectation that liquidity will support continued business growth; expectation that 2024 will generate substantial free cash flow; assumptions regarding continued improvement in pricing and margins in the energy-focused businesses and stable pricing and margins in the government-focused businesses; expectations for improved financial performance and condition in 2024; expectations regarding new contracts; and the characterization, whether positive or otherwise, of market fundamentals, conditions and dynamics, robotics markets, offshore energy activity levels (including by geographic location), pricing levels, day rates, ROV days on hire, average ROV revenue per day on hire, vessel utilization, growth, bidding activity, outlook, performance, opportunities and future financials, including as increasing, favorable, positive, encouraging, improving, seasonal, strong, supportive, robust, meaningful, healthy or significant (which is used herein to indicate a change of 20% or greater).
The forward-looking statements included in this release are based on Oceaneering's current expectations and are subject to certain risks, assumptions, trends and uncertainties that could cause actual results to differ materially
3
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; the indirect consequences of climate change and climate-related business trends; 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; 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 data privacy and security laws, regulations and standards; 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. Except to the extent required by applicable law, Oceaneering undertakes no obligation to update or revise any forward-looking statement.
Oceaneering is a global technology company delivering engineered services and products and robotic solutions to the offshore energy, defense, aerospace, manufacturing, and entertainment industries.
For more information on Oceaneering, please visit www.oceaneering.com.
Contact:
investorrelations@oceaneering.com
Hilary Frisbie
Senior Director, Investor Relations
Oceaneering International, Inc.
713-329-4755
Mark Peterson
Vice President, Corporate Development and Investor Relations
Oceaneering International, Inc.
713-329-4507
- Tables follow on next page -
4
OCEANEERING INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
Dec 31, 2023
Dec 31, 2022
(in thousands)
ASSETS
Current assets (including cash and cash equivalents of $461,566 and $568,745)
$
1,305,659
$
1,297,060
Net property and equipment
424,293
438,449
Other assets
509,054
296,174
Total Assets
$
2,239,006
$
2,031,683
LIABILITIES AND EQUITY
Current liabilities
$
732,476
$
568,414
Long-term debt
477,058
700,973
Other long-term liabilities
395,389
236,492
Equity
634,083
525,804
Total Liabilities and Equity
$
2,239,006
$
2,031,683
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended
For the Year Ended
Dec 31, 2023
Dec 31, 2022
Sep 30, 2023
Dec 31, 2023
Dec 31, 2022
(in thousands, except per share amounts)
Revenue
$
654,629
$
536,223
$
635,180
$
2,424,706
$
2,066,084
Cost of services and products
549,000
446,121
520,483
2,025,735
1,758,707
Gross margin
105,629
90,102
114,697
398,971
307,377
Selling, general and administrative expense
58,179
47,925
56,768
217,643
196,514
Income (loss) from operations
47,450
42,177
57,929
181,328
110,863
Interest income
3,081
2,749
3,724
15,425
5,708
Interest expense
(7,921)
(9,601)
(9,802)
(36,523)
(38,215)
Equity in income (losses) of unconsolidated affiliates
445
599
498
2,061
1,707
Other income (expense), net
3,564
(816)
968
(1,236)
(1,011)
Income (loss) before income taxes
46,619
35,108
53,317
161,055
79,052
Provision (benefit) for income taxes
2,090
11,980
23,505
63,652
53,111
Net Income (Loss)
$
44,529
$
23,128
$
29,812
$
97,403
$
25,941
Weighted average diluted shares outstanding
102,366
101,597
102,206
102,156
101,447
Diluted earnings (loss) per share
$
0.43
$
0.23
$
0.29
$
0.95
$
0.26
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 Ended
For the Year Ended
Dec 31, 2023
Dec 31, 2022
Sep 30, 2023
Dec 31, 2023
Dec 31, 2022
($ in thousands)
Subsea Robotics
Revenue
$
199,505
$
167,387
$
197,343
$
752,521
$
621,921
Gross margin
$
64,085
$
54,013
$
60,045
$
221,965
$
160,527
Operating income (loss)
$
50,594
$
43,689
$
47,818
$
174,293
$
118,248
Operating income (loss) %
25
%
26
%
24
%
23
%
19
%
ROV days available
23,000
23,000
23,000
91,250
91,250
ROV days utilized
15,682
14,350
15,932
61,874
56,231
ROV utilization
68
%
62
%
69
%
68
%
62
%
Manufactured Products
Revenue
$
132,994
$
100,174
$
122,877
$
493,692
$
382,361
Gross margin
$
13,923
$
14,744
$
16,916
$
69,613
$
45,834
Operating income (loss)
$
5,435
$
6,132
$
8,229
$
35,551
$
11,692
Operating income (loss) %
4
%
6
%
7
%
7
%
3
%
Backlog at end of period
$
622,000
$
467,000
$
556,000
$
622,000
$
467,000
Offshore Projects Group
Revenue
$
161,239
$
122,476
$
150,273
$
546,366
$
489,317
Gross margin
$
26,269
$
17,548
$
33,045
$
96,940
$
78,373
Operating income (loss)
$
15,155
$
10,745
$
26,745
$
64,546
$
49,256
Operating income (loss) %
9
%
9
%
18
%
12
%
10
%
Integrity Management & Digital Solutions
Revenue
$
65,977
$
55,411
$
66,056
$
255,282
$
229,884
Gross margin
$
9,914
$
9,932
$
9,961
$
38,988
$
36,724
Operating income (loss)
$
3,205
$
4,866
$
3,242
$
13,373
$
14,901
Operating income (loss) %
5
%
9
%
5
%
5
%
6
%
Aerospace and Defense Technologies
Revenue
$
94,914
$
90,775
$
98,631
$
376,845
$
342,601
Gross margin
$
17,350
$
16,402
$
20,295
$
70,420
$
68,447
Operating income (loss)
$
11,010
$
10,320
$
14,140
$
45,003
$
44,168
Operating income (loss) %
12
%
11
%
14
%
12
%
13
%
Unallocated Expenses
Gross margin
$
(25,912)
$
(22,537)
$
(25,565)
$
(98,955)
$
(82,528)
Operating income (loss)
$
(37,949)
$
(33,575)
$
(42,245)
$
(151,438)
$
(127,402)
Total
Revenue
$
654,629
$
536,223
$
635,180
$
2,424,706
$
2,066,084
Gross margin
$
105,629
$
90,102
$
114,697
$
398,971
$
307,377
Operating income (loss)
$
47,450
$
42,177
$
57,929
$
181,328
$
110,863
Operating income (loss) %
7
%
8
%
9
%
7
%
5
%
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.
6
SELECTED CASH FLOW INFORMATION
For the Three Months Ended
For the Year Ended
Dec 31, 2023
Dec 31, 2022
Sep 30, 2023
Dec 31, 2023
Dec 31, 2022
(in thousands)
Capital Expenditures, including Acquisitions
$
34,045
$
25,949
$
25,945
$
100,726
$
81,043
Depreciation and Amortization:
Energy Services and Products
Subsea Robotics
$
13,264
$
15,139
$
12,805
$
54,365
$
67,684
Manufactured Products
3,096
2,915
3,067
12,220
11,946
Offshore Projects Group
6,921
7,024
6,931
27,956
28,560
Integrity Management & Digital Solutions
902
840
909
3,608
4,599
Total Energy Services and Products
24,183
25,918
23,712
98,149
112,789
Aerospace and Defense Technologies
619
705
600
2,504
2,853
Unallocated Expenses
695
1,218
1,284
4,307
5,327
Total Depreciation and Amortization
$
25,497
$
27,841
$
25,596
$
104,960
$
120,969
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 certain rules and regulations promulgated by the Securities and Exchange Commission). 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, 2024 Adjusted EBITDA Estimates, and Free Cash Flow, as well as the following by segment: EBITDA, EBITDA Margins, Adjusted EBITDA and Adjusted EBITDA Margins. We define EBITDA Margin as EBITDA divided by revenue. Adjusted EBITDA and Adjusted EBITDA Margins 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 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 purposes and for comparing our financial performance with the performance of other companies in our industry, and the adjusted amounts thereof 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
Dec 31, 2023
Dec 31, 2022
Sep 30, 2023
Net Income (Loss)
Diluted EPS
Net Income (Loss)
Diluted EPS
Net Income (Loss)
Diluted EPS
(in thousands, except per share amounts)
Net income (loss) and diluted EPS as reported in accordance with GAAP
$
44,529
$
0.43
$
23,128
$
0.23
$
29,812
$
0.29
Pre-tax adjustments for the effects of:
Foreign currency (gains) losses
(2,275)
193
(944)
Total pre-tax adjustments
(2,275)
193
(944)
Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods
851
(333)
615
Discrete tax items:
Share-based compensation
(58)
—
—
Uncertain tax positions
(2,036)
(669)
13,076
Valuation allowances
(20,350)
(7,679)
9,353
Other
(1,230)
(8,263)
(13,430)
Total discrete tax adjustments
(23,674)
(16,611)
8,999
Total of adjustments
(25,098)
(16,751)
8,670
Adjusted Net Income (Loss)
$
19,431
$
0.19
$
6,377
$
0.06
$
38,482
$
0.38
Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss)
102,366
101,597
102,206
9
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
(continued)
Adjusted Net Income (Loss) and Diluted Earnings (Loss) per Share (EPS)
For the Year Ended
Dec 31, 2023
Dec 31, 2022
Net Income (Loss)
Diluted EPS
Net Income (Loss)
Diluted EPS
(in thousands, except per share amounts)
Net income (loss) and diluted EPS as reported in accordance with GAAP
$
97,403
$
0.95
$
25,941
$
0.26
Pre-tax adjustments for the effects of:
Foreign currency (gains) losses
1,359
4
Total pre-tax adjustments
1,359
4
Tax effect on pre-tax adjustments at the applicable jurisdictional statutory rate in effect for respective periods
(837)
(275)
Discrete tax items:
Share-based compensation
(1,428)
137
Uncertain tax positions
15,441
(81)
Valuation allowances
(16,099)
11,119
Other
(13,890)
(5,734)
Total discrete tax adjustments
(15,976)
5,441
Total of adjustments
(15,454)
5,170
Adjusted Net Income (Loss)
$
81,949
$
0.80
$
31,111
$
0.31
Weighted average diluted shares outstanding utilized for Adjusted Net Income (Loss)
102,156
101,447
10
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
(continued)
EBITDA and Adjusted EBITDA and Margins
For the Three Months Ended
For the Year Ended
Dec 31, 2023
Dec 31, 2022
Sep 30, 2023
Dec 31, 2023
Dec 31, 2022
($ in thousands)
Net income (loss)
$
44,529
$
23,128
$
29,812
$
97,403
$
25,941
Depreciation and amortization
25,497
27,841
25,596
104,960
120,969
Subtotal
70,026
50,969
55,408
202,363
146,910
Interest expense, net of interest income
4,840
6,852
6,078
21,098
32,507
Amortization included in interest expense
460
33
51
574
106
Provision (benefit) for income taxes
2,090
11,980
23,505
63,652
53,111
EBITDA
77,416
69,834
85,042
287,687
232,634
Adjustments for the effects of:
Foreign currency (gains) losses
(2,275)
193
(944)
1,359
4
Total of adjustments
(2,275)
193
(944)
1,359
4
Adjusted EBITDA
$
75,141
$
70,027
$
84,098
$
289,046
$
232,638
Revenue
$
654,629
$
536,223
$
635,180
$
2,424,706
$
2,066,084
EBITDA margin %
12
%
13
%
13
%
12
%
11
%
Adjusted EBITDA margin %
11
%
13
%
13
%
12
%
11
%
Free Cash Flow
For the Three Months Ended
For the Year Ended
Dec 31, 2023
Dec 31, 2022
Sep 30, 2023
Dec 31, 2023
Dec 31, 2022
(in thousands)
Net Income (loss)
$
44,529
$
23,128
$
29,812
$
97,403
$
25,941
Non-cash adjustments:
Depreciation and amortization
25,497
27,841
25,596
104,960
120,969
Other non-cash
(22,486)
2,991
6,381
(13,370)
8,542
Other increases (decreases) in cash from operating activities
105,275
105,506
17,819
20,962
(34,569)
Cash flow provided by (used in) operating activities
152,815
159,466
79,608
209,955
120,883
Purchases of property and equipment
(34,045)
(25,949)
(25,945)
(100,726)
(81,043)
Free Cash Flow
$
118,770
$
133,517
$
53,663
$
109,229
$
39,840
11
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
(continued)
2024 EBITDA Estimates
For the Three Months Ending
March 31, 2024
Low
High
(in thousands)
Income (loss) before income taxes
$
18,000
$
26,000
Depreciation and amortization
25,000
26,000
Subtotal
43,000
52,000
Interest expense, net of interest income
7,000
8,000
EBITDA
$
50,000
$
60,000
For the Year Ending
December 31, 2024
Low
High
(in thousands)
Income (loss) before income taxes
$
206,000
$
242,000
Depreciation and amortization
100,000
110,000
Subtotal
306,000
352,000
Interest expense, net of interest income
24,000
28,000
EBITDA
$
330,000
$
380,000
2024 Free Cash Flow Estimate
For the Year Ending
December 31, 2024
Low
High
(in thousands)
Net income (loss)
$
125,000
$
155,000
Depreciation and amortization
100,000
110,000
Other increases (decreases) in cash from operating activities
(5,000)
15,000
Cash flow provided by (used in) operating activities
220,000
280,000
Purchases of property and equipment
(110,000)
(130,000)
Free Cash Flow
$
110,000
$
150,000
12
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
(continued)
EBITDA and Adjusted EBITDA and Margins by Segment
For the Three Months Ended December 31, 2023
SSR
MP
OPG
IMDS
ADTech
Unallocated Expenses and other
Total
($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP
$
50,594
$
5,435
$
15,155
$
3,205
$
11,010
$
(37,949)
$
47,450
Adjustments for the effects of:
Depreciation and amortization
13,264
3,096
6,921
902
619
695
25,497
Other pre-tax
—
—
—
—
—
4,469
4,469
EBITDA
63,858
8,531
22,076
4,107
11,629
(32,785)
77,416
Adjustments for the effects of:
Foreign currency (gains) losses
—
—
—
—
—
(2,275)
(2,275)
Total of adjustments
—
—
—
—
—
(2,275)
(2,275)
Adjusted EBITDA
$
63,858
$
8,531
$
22,076
$
4,107
$
11,629
$
(35,060)
$
75,141
Revenue
$
199,505
$
132,994
$
161,239
$
65,977
$
94,914
$
654,629
Operating income (loss) % as reported in accordance with GAAP
25
%
4
%
9
%
5
%
12
%
7
%
EBITDA Margin
32
%
6
%
14
%
6
%
12
%
12
%
Adjusted EBITDA Margin
32
%
6
%
14
%
6
%
12
%
11
%
For the Three Months Ended December 31, 2022
SSR
MP
OPG
IMDS
ADTech
Unallocated Expenses and other
Total
($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP
$
43,689
$
6,132
$
10,745
$
4,866
$
10,320
$
(33,575)
$
42,177
Adjustments for the effects of:
Depreciation and amortization
15,139
2,915
7,024
840
705
1,218
27,841
Other pre-tax
—
—
—
—
—
(184)
(184)
EBITDA
58,828
9,047
17,769
5,706
11,025
(32,541)
69,834
Adjustments for the effects of:
Foreign currency (gains) losses
—
—
—
—
—
193
193
Total of adjustments
—
—
—
—
—
193
193
Adjusted EBITDA
$
58,828
$
9,047
$
17,769
$
5,706
$
11,025
$
(32,348)
$
70,027
Revenue
$
167,387
$
100,174
$
122,476
$
55,411
$
90,775
$
536,223
Operating income (loss) % as reported in accordance with GAAP
26
%
6
%
9
%
9
%
11
%
8
%
EBITDA Margin
35
%
9
%
15
%
10
%
12
%
13
%
Adjusted EBITDA Margin
35
%
9
%
15
%
10
%
12
%
13
%
13
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
(continued)
EBITDA and Adjusted EBITDA and Margins by Segment
For the Three Months Ended September 30, 2023
SSR
MP
OPG
IMDS
ADTech
Unallocated Expenses and other
Total
($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP
$
47,818
$
8,229
$
26,745
$
3,242
$
14,140
$
(42,245)
$
57,929
Adjustments for the effects of:
Depreciation and amortization
12,805
3,067
6,931
909
600
1,284
25,596
Other pre-tax
—
—
—
—
—
1,517
1,517
EBITDA
60,623
11,296
33,676
4,151
14,740
(39,444)
85,042
Adjustments for the effects of:
Foreign currency (gains) losses
—
—
—
—
—
(944)
(944)
Total of adjustments
—
—
—
—
—
(944)
(944)
Adjusted EBITDA
$
60,623
$
11,296
$
33,676
$
4,151
$
14,740
$
(40,388)
$
84,098
Revenue
$
197,343
$
122,877
$
150,273
$
66,056
$
98,631
$
635,180
Operating income (loss) % as reported in accordance with GAAP
24
%
7
%
18
%
5
%
14
%
9
%
EBITDA Margin
31
%
9
%
22
%
6
%
15
%
13
%
Adjusted EBITDA Margin
31
%
9
%
22
%
6
%
15
%
13
%
14
RECONCILIATIONS OF NON-GAAP TO GAAP FINANCIAL INFORMATION
(continued)
EBITDA and Adjusted EBITDA and Margins by Segment
For the Year Ended December 31, 2023
SSR
MP
OPG
IMDS
ADTech
Unallocated Expenses and other
Total
($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP
$
174,293
$
35,551
$
64,546
$
13,373
$
45,003
$
(151,438)
$
181,328
Adjustments for the effects of:
Depreciation and amortization
54,365
12,220
27,956
3,608
2,504
4,307
104,960
Other pre-tax
—
—
—
—
—
1,399
1,399
EBITDA
228,658
47,771
92,502
16,981
47,507
(145,732)
287,687
Adjustments for the effects of:
Foreign currency (gains) losses
—
—
—
—
—
1,359
1,359
Total of adjustments
—
—
—
—
—
1,359
1,359
Adjusted EBITDA
$
228,658
$
47,771
$
92,502
$
16,981
$
47,507
$
(144,373)
$
289,046
Revenue
$
752,521
$
493,692
$
546,366
$
255,282
$
376,845
$
2,424,706
Operating income (loss) % as reported in accordance with GAAP
23
%
7
%
12
%
5
%
12
%
7
%
EBITDA Margin
30
%
10
%
17
%
7
%
13
%
12
%
Adjusted EBITDA Margin
30
%
10
%
17
%
7
%
13
%
12
%
For the Year Ended December 31, 2022
SSR
MP
OPG
IMDS
ADTech
Unallocated Expenses and other
Total
($ in thousands)
Operating Income (Loss) as reported in accordance with GAAP
$
118,248
$
11,692
$
49,256
$
14,901
$
44,168
$
(127,402)
$
110,863
Adjustments for the effects of:
Depreciation and amortization
67,684
11,946
28,560
4,599
2,853
5,327
120,969
Other pre-tax
—
—
—
—
—
802
802
EBITDA
185,932
23,638
77,816
19,500
47,021
(121,273)
232,634
Adjustments for the effects of:
Foreign currency (gains) losses
—
—
—
—
—
4
4
Total of adjustments
—
—
—
—
—
4
4
Adjusted EBITDA
$
185,932
$
23,638
$
77,816
$
19,500
$
47,021
$
(121,269)
$
232,638
Revenue
$
621,921
$
382,361
$
489,317
$
229,884
$
342,601
$
2,066,084
Operating income (loss) % as reported in accordance with GAAP
