• Oil States Announces Fourth Quarter 2021 Results of Operations

    المصدر: Nasdaq GlobeNewswire / 16 فبراير 2022 20:00:00   America/New_York

    HOUSTON, Feb. 16, 2022 (GLOBE NEWSWIRE) -- Oil States International, Inc. (NYSE: OIS) reported a net loss of $19.9 million, or $0.33 per share, for the fourth quarter of 2021. The reported results included: non-cash impairment charges of $2.2 million ($1.7 million after tax, or $0.03 per share) related to write-downs of inventories and fixed assets; severance and restructuring charges of $0.8 million ($0.6 million after-tax, or $0.01 per share); and a non-cash foreign currency translation loss of $9.3 million ($9.3 million after-tax, or $0.15 per share) reclassified from other comprehensive income upon exit of the Company's Argentinian operation. After excluding these charges, the Company's adjusted net loss was $8.2 million, or $0.14 per share.

    During the fourth quarter of 2021, the Company generated revenues of $161.3 million and Adjusted Consolidated EBITDA (Note A) of $13.4 million. These results compare to revenues of $140.5 million and Adjusted Consolidated EBITDA of $8.5 million reported in the third quarter of 2021.

    Fourth quarter 2021 highlights included:

    • Offshore/Manufactured Products segment revenue and Adjusted Segment EBITDA (Note B) increased sequentially 34% and 59%, respectively, driven by a 72% increase in project-related revenue
    • Offshore/Manufactured Products backlog increased $11 million to $260 million, with a book-to-bill ratio of 1.1x, augmented by one notable project award exceeding $10 million
    • Well Site Services Adjusted Segment EBITDA increased sequentially to $6.2 million despite a modest seasonal reduction in revenue

    Oil States' President and Chief Executive Officer, Cindy B. Taylor, stated,

    "Our consolidated revenues and Adjusted Consolidated EBITDA increased sequentially by 15% and 57%, respectively, despite global challenges associated with the COVID-19 pandemic, supply chain disruptions and a modest seasonal decline in U.S. customer completion activity in the Northeast.

    "Revenues in our Offshore/Manufactured Products segment led the growth, with a 34% sequential increase driven primarily by higher sales of project-driven production, testing and connector products. Adjusted Segment EBITDA for Offshore/Manufactured Products increased $5.1 million, or 59%, sequentially totaling $13.7 million, reflective of the revenue growth. Backlog grew to $260 million at December 31, 2021 with quarterly bookings of $105 million, yielding book-to-bill ratios of 1.1x for the fourth quarter and 1.2x for the full-year 2021.

    "Our Well Site Services segment revenues decreased 6% from the prior quarter due to a seasonal decline in customer activity in our U.S. Rocky Mountain and Northeast regions coupled with slower activity stemming from ongoing infrastructure repairs by operators in the Gulf of Mexico following Hurricane Ida. However, Adjusted Segment EBITDA increased sequentially for the fifth consecutive quarter, given a more favorable revenue mix and the benefit of cost control measures.

    "Fourth quarter revenues in our Downhole Technologies segment were up modestly from the third quarter, driven by higher sales of our domestic perforating products.

    "We continue to focus on delivering superior products and services to our customers, which are expected to provide sustainable returns to the Company and its stakeholders as industry activity continues to recover from the harsh effects of the COVID-19 pandemic. We are focused on profitable product and service lines and will allocate capital accordingly. With this focus, stockholders' returns should continue to improve."

    For the year ended December 31, 2021, the Company reported a net loss of $64.0 million, or $1.06 per share, revenues of $573.2 million and Adjusted Consolidated EBITDA of $38.1 million. The full-year 2021 results included: non-cash impairment charges of $7.7 million ($6.1 million after-tax, or $0.10 per share) related to write-downs of inventories and fixed and lease assets; severance and restructuring charges of $7.5 million ($5.9 million after-tax, or $0.10 per share); a non-cash foreign currency translation loss of $9.3 million ($9.3 million after-tax, or $0.15 per share) reclassified from other comprehensive income upon exit of the Company's Argentinian operation; and non-cash gains of $4.0 million ($3.2 million after-tax, or $0.05 per share) associated with debt extinguishments. After excluding these charges and credits, the Company’s adjusted net loss was $45.8 million, or $0.76 per share.

    BUSINESS SEGMENT RESULTS

    (See Segment Data tables)

    Offshore/Manufactured Products

    Offshore/Manufactured Products reported revenues of $92.2 million and Adjusted Segment EBITDA of $13.7 million in the fourth quarter of 2021, compared to revenues of $69.0 million and Adjusted Segment EBITDA of $8.6 million reported in the third quarter of 2021. Revenues increased 34% sequentially, driven primarily by increases in project-driven and service revenues of 72% and 17%, respectively. Adjusted Segment EBITDA margin in the fourth quarter of 2021 was 15%, compared to 12% in the third quarter of 2021.

    Backlog totaled $260 million as of December 31, 2021, a 4% sequential increase from September 30, 2021. During the fourth quarter of 2021, the segment received one notable project award exceeding $10 million. Fourth quarter 2021 bookings totaled $105 million, yielding a quarterly book-to-bill ratio of 1.1x and a full-year ratio of 1.2x.

    Well Site Services

    Well Site Services reported revenues of $43.3 million and Adjusted Segment EBITDA of $6.2 million in the fourth quarter of 2021, compared to revenues of $46.0 million and Adjusted Segment EBITDA of $5.9 million reported in the third quarter of 2021. Adjusted Segment EBITDA margin the fourth quarter of 2021 was 14%, compared to 13% in the third quarter of 2021.

    In the fourth quarter of 2021, the segment recorded non-cash inventory and fixed asset impairment charges of $2.2 million due to the decision to exit certain non-performing service lines.

    Downhole Technologies

    Downhole Technologies reported revenues of $25.8 million and Adjusted Segment EBITDA of $0.1 million in the fourth quarter of 2021, compared to revenues of $25.5 million and Adjusted Segment EBITDA of $1.4 million reported in the third quarter of 2021. During the fourth quarter 2021, the segment recorded bad debt expense of $0.7 million on a receivable from a customer which announced liquidation in January 2022. Adjusted Segment EBITDA margin in the fourth quarter of 2021 was 1%, compared to 6% in the third quarter of 2021.

    Corporate

    Corporate operating expenses in the fourth quarter of 2021 totaled $6.7 million.

    Interest Expense, Net

    Net interest expense totaled $2.6 million in the fourth quarter of 2021, which included $0.5 million of non-cash amortization of deferred debt issuance costs.

    Other Income (Expense), Net

    In the fourth quarter of 2021, the Company recognized a $9.3 million non-cash loss associated with the reclassification of unrealized foreign currency translation adjustments to net income (loss), which were released upon the liquidation of the Company's Argentinian operation. An offsetting non-cash benefit was recognized as other comprehensive income in the fourth quarter.

    Income Taxes

    The Company recognized an effective tax rate benefit of 1% in the fourth quarter of 2021, which compared to an effective tax rate benefit of 21% in the third quarter of 2021. The effective tax rate benefit for the fourth quarter of 2021 was below the U.S. statutory rate primarily due to certain non-deductible expenses, including the non-cash currency translation loss.

    Financial Condition

    No borrowings were outstanding under the Company's asset-based revolving credit facility (the "ABL Facility") at December 31, 2021. Cash totaled $52.9 million, compared to $67.6 million at September 30, 2021. Liquidity (cash plus borrowing availability) totaled $101.7 million at December 31, 2021 with amounts available to be drawn under the ABL Facility totaling $48.9 million.

    The Company's total debt represented 20% of combined total debt and stockholders' equity as of December 31, 2021 and 2020.

    Conference Call Information

    The call is scheduled for February 17, 2022 at 9:00 a.m. central standard time, is being webcast and can be accessed from the Company's website at www.ir.oilstatesintl.com. Participants may also join the conference call by dialing 1 (888) 771-4371 in the United States or by dialing +1 (847) 585-4405 internationally and using the passcode 50277012. A replay of the conference call will be available one and a half hours after the completion of the call and can be accessed from the Company's website at www.ir.oilstatesintl.com.

    About Oil States

    Oil States International, Inc. is a global provider of manufactured products and services to customers in the energy, industrial and military sectors. The Company's manufactured products include highly engineered capital equipment and consumable products. Oil States is headquartered in Houston, Texas with manufacturing and service facilities strategically located across the globe. Oil States is publicly traded on the New York Stock Exchange under the symbol "OIS".

    For more information on the Company, please visit Oil States International's website at www.oilstatesintl.com.

    Forward Looking Statements

    The foregoing contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements included herein are based on current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Such risks and uncertainties include, among others, the level of supply of and demand for oil and natural gas, fluctuations in the prices thereof, the cyclical nature of the oil and natural gas industry, the impact of the COVID-19 pandemic on the Company and its customers, the other risks associated with the general nature of the energy service industry and other factors discussed in the "Business" and "Risk Factors" sections of the Company's Annual Report on Form 10-K for the year ended December 31, 2020 and the subsequently filed Periodic Reports on Form 8-K. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof, and, except as required by law, the Company undertakes no obligation to update those statements or to publicly announce the results of any revisions to any of those statements to reflect future events or developments.


    OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

    CONSOLIDATED STATEMENTS OF OPERATIONS
    (In Thousands, Except Per Share Amounts)

     Three Months Ended Year Ended
     December 31,
    2021    		 September 30,
    2021    		 December 31,
    2020    		 December 31,
    2021    		 December 31,
    2020
     (Unaudited) (Unaudited) (Unaudited) (Unaudited)  
    Revenues:         
    Products$89,401  $70,409  $73,051  $299,293  $331,272 
    Services 71,919   70,119   64,326   273,868   306,803 
      161,320   140,528   137,377   573,161   638,075 
              
    Costs and expenses:         
    Product costs 72,890   60,310   62,992   246,589   287,615 
    Service costs 60,357   56,897   52,517   223,807   274,190 
    Cost of revenues (exclusive of depreciation and
    amortization expense presented below)(1)    		 133,247   117,207   115,509   470,396   561,805 
    Selling, general and administrative expense 20,297   20,078   22,597   83,692   94,102 
    Depreciation and amortization expense 18,655   19,657   23,237   80,741   98,543 
    Impairments of goodwill —   —   —   —   406,056 
    Impairments of fixed and lease assets 722   —   4,257   4,166   12,447 
    Other operating income, net (328)  (275)  141   (1,042)  (538)
      172,593   156,667   165,741   637,953   1,172,415 
    Operating loss (11,273)  (16,139)  (28,364)  (64,792)  (534,340)
              
    Interest expense, net (2,577)  (2,569)  (2,637)  (10,170)  (13,869)
    Other income (expense), net(2) (6,289)  2,137   368   1,628   13,880 
    Loss before income taxes (20,139)  (16,571)  (30,633)  (73,334)  (534,329)
    Income tax benefit 269   3,529   11,886   9,341   65,946 
    Net loss$(19,870) $(13,042) $(18,747) $(63,993) $(468,383)
              
    Net loss per share:         
    Basic$(0.33) $(0.22) $(0.31) $(1.06) $(7.83)
    Diluted$(0.33) $(0.22) $(0.31) $(1.06) $(7.83)
              
    Weighted average number of common shares outstanding:        
    Basic 60,380   60,377   59,885   60,293   59,812 
    Diluted 60,380   60,377   59,885   60,293   59,812 

    ________________

    (1)   In the three months and year ended December 31, 2021, cost of revenues (exclusive of depreciation and amortization expense) included non-cash inventory impairment charges of $1.5 million (in service costs) and $3.6 million ($2.1 million in product costs and $1.5 million in service costs), respectively. For the three months and year ended December 31, 2020, cost of revenues (exclusive of depreciation and amortization expense) included non-cash inventory impairment charges of $5.9 million (in product costs) and $31.2 million ($17.9 million in product costs and $13.3 million in service costs), respectively.

    (2)   Other income (expense), net in the three months and year ended December 31, 2021 included a non-cash loss of $9.3 million associated with the reclassification of unrealized foreign currency translation adjustments which were released upon the liquidation of an international operation. Additionally, for the year ended December 31, 2021, non-cash gains of $4.0 million were recognized in connection with purchases of $131.4 million principal amount of the 2023 Notes. For the year ended December 31, 2020, non-cash gains of $10.7 million were recognized in connection with the purchases of $34.9 million in principal amount of the 2023 Notes.


    OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

    CONSOLIDATED BALANCE SHEETS
    (In Thousands)

     December 31, 2021 December 31, 2020
     (Unaudited)  
    ASSETS   
    Current assets:   
    Cash and cash equivalents$52,852  $72,011 
    Accounts receivable, net 186,080   163,135 
    Inventories, net 168,573   170,376 
    Prepaid expenses and other current assets 19,222   18,071 
    Total current assets 426,727   423,593 
        
    Property, plant, and equipment, net 338,583   383,562 
    Operating lease assets, net 25,388   33,140 
    Goodwill, net 76,412   76,489 
    Other intangible assets, net 185,749   205,749 
    Other noncurrent assets 32,889   29,727 
    Total assets$1,085,748  $1,152,260 
        
    LIABILITIES AND STOCKHOLDERS' EQUITY   
    Current liabilities:   
    Current portion of long-term debt$18,262  $17,778 
    Accounts payable 63,343   46,433 
    Accrued liabilities 43,401   44,504 
    Current operating lease liabilities 6,481   7,620 
    Income taxes payable 2,564   2,413 
    Deferred revenue 43,236   43,384 
    Total current liabilities 177,287   162,132 
        
    Long-term debt 160,488   165,759 
    Long-term operating lease liabilities 23,452   29,166 
    Deferred income taxes 3,637   14,263 
    Other noncurrent liabilities 25,058   23,309 
    Total liabilities 389,922   394,629 
        
    Stockholders' equity:   
    Common stock 739   733 
    Additional paid-in capital 1,105,135   1,122,945 
    Retained earnings 281,567   329,327 
    Accumulated other comprehensive loss (66,031)  (71,385)
    Treasury stock (625,584)  (623,989)
    Total stockholders' equity 695,826   757,631 
    Total liabilities and stockholders' equity$1,085,748  $1,152,260 


    OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In Thousands)

     Year Ended December 31,
      2021   2020 
     (Unaudited)  
    Cash flows from operating activities:   
    Net loss$(63,993) $(468,383)
    Adjustments to reconcile net loss to net cash provided by operating activities:   
    Depreciation and amortization expense 80,741   98,543 
    Impairments of goodwill —   406,056 
    Impairments of inventories 3,581   31,151 
    Impairments of fixed and lease assets 4,166   12,447 
    Stock-based compensation expense 7,879   8,431 
    Amortization of debt discount and deferred financing costs 2,314   7,736 
    Deferred income tax benefit (8,639)  (24,404)
    Release of foreign currency translation adjustments on liquidation of an international operation 9,320   — 
    Gains on extinguishment of 1.50% convertible senior notes (4,022)  (10,721)
    Gains on disposals of assets (6,472)  (2,444)
    Other, net (511)  4,668 
    Changes in operating assets and liabilities:   
    Accounts receivable (24,407)  63,876 
    Inventories (10,334)  17,578 
    Accounts payable and accrued liabilities 17,727   (37,315)
    Deferred revenue (148)  25,549 
    Other operating assets and liabilities, net (8)  (13)
    Net cash flows provided by operating activities 7,194   132,755 
        
    Cash flows from investing activities:   
    Capital expenditures (17,517)  (12,749)
    Proceeds from disposition of property and equipment 11,527   9,601 
    Other, net (636)  (581)
    Net cash flows used in investing activities (6,626)  (3,729)
        
    Cash flows from financing activities:   
    Revolving credit facility borrowings 12,873   72,173 
    Revolving credit facility repayments (31,873)  (105,104)
    Issuance of 4.75% convertible senior notes 135,000   — 
    Purchases of 1.50% convertible senior notes (125,952)  (20,078)
    Other debt and finance lease repayments, net (230)  (8,222)
    Payment of financing costs (7,791)  (1,041)
    Shares added to treasury stock as a result of net share settlements
    due to vesting of stock awards    		 (1,595)  (2,745)
    Net cash flows used in financing activities (19,568)  (65,017)
        
    Effect of exchange rate changes on cash and cash equivalents (159)  (491)
    Net change in cash and cash equivalents (19,159)  63,518 
    Cash and cash equivalents, beginning of period 72,011   8,493 
    Cash and cash equivalents, end of period$52,852  $72,011 
        
    Cash paid (received) for:   
    Interest$6,532  $6,402 
    Income taxes, net 152   (36,766)


    OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

    SEGMENT DATA
    (In Thousands)
    (unaudited)

     Three Months Ended Year Ended
     December 31,
    2021(2)    		 September 30,
    2021(3)    		 December 31,
    2020(4)    		 December 31,
    2021(5)    		 December 31,
    2020(6)
    Revenues:         
    Offshore/Manufactured Products(1):         
    Project-driven products$43,603  $25,294  $36,340  $122,097  $165,497 
    Short-cycle products 18,212   18,682   6,808   65,174   48,142 
    Other products and services 30,394   25,027   32,370   111,458   126,661 
    Total Offshore/Manufactured Products 92,209   69,003   75,518   298,729   340,300 
    Downhole Technologies 25,775   25,527   23,193   103,492   97,936 
    Well Site Services 43,336   45,998   38,666   170,940   199,839 
    Total revenues$161,320  $140,528  $137,377  $573,161  $638,075 
              
    Operating income (loss):         
    Offshore/Manufactured Products$7,802  $1,764  $1,408  $15,447  $(80,794)
    Downhole Technologies (4,525)  (5,035)  (8,019)  (13,470)  (224,414)
    Well Site Services (7,818)  (5,250)  (11,642)  (34,511)  (193,388)
    Corporate (6,732)  (7,618)  (10,111)  (32,258)  (35,744)
    Total operating loss$(11,273) $(16,139) $(28,364) $(64,792) $(534,340)

    ________________

    (1)   Disaggregated revenue data is provided to supplement the Segment Data.

    (2)   Operating income (loss) for the three months ended December 31, 2021 included $0.3 million of severance and restructuring charges related to the Offshore/Manufactured Products segment. In the Downhole Technologies segment, operating income (loss) included severance and restructuring charges of $0.2 million. In the Well Site Services segment, operating income (loss) included non-cash inventory and fixed asset impairment charges of $1.5 million and $0.7 million, respectively, and severance and restructuring charges of $0.3 million.

    (3)   Operating income (loss) for the three months ended September 30, 2021 included $0.3 million of severance and restructuring charges related to the Offshore/Manufactured Products segment. In the Downhole Technologies segment, operating income (loss) included a non-cash inventory impairment charge of $2.1 million and severance and restructuring charges of $0.1 million. In the Well Site Services segment, operating income (loss) included severance and restructuring charges of $0.4 million.

    (4)   Operating income (loss) for the three months ended December 31, 2020 included $0.6 million of severance and restructuring charges in the Offshore/Manufactured Products segment. In the Downhole Technologies segment, operating income (loss) included non-cash fixed and lease asset impairment charges of $3.6 million and severance and restructuring charges of $0.7 million. In the Well Site Services segment, operating income (loss) included a non-cash fixed asset impairment charge of $0.7 million and severance and restructuring charges of $0.2 million. In Corporate, operating income (loss) included $1.2 million of severance charges.

    (5)   Operating income (loss) for the year ended December 31, 2021 included $0.9 million of severance and restructuring charges related to the Offshore/Manufactured Products segment. In the Downhole Technologies segment, operating income (loss) included a non-cash inventory impairment charge of $2.1 million and severance and restructuring charges of $0.8 million. In the Well Site Services segment, operating income (loss) included non-cash fixed asset and operating lease impairment charges of $4.2 million, a non-cash inventory impairment charge of $1.5 million and severance and restructuring charges of $4.3 million. In Corporate, operating income (loss) included $1.6 million of severance charges.

    (6)   Operating income (loss) for the year ended December 31, 2020 included a non-cash goodwill impairment charge of $86.5 million, a non-cash inventory impairment charge of $16.2 million and $1.4 million of severance and restructuring charges related to the Offshore/Manufactured Products segment. In the Downhole Technologies segment, operating income (loss) included a non-cash goodwill impairment charge of $192.5 million, a non-cash inventory impairment charge of $5.9 million, non-cash fixed asset and lease impairment charges of $3.6 million and $2.0 million of severance and restructuring charges. In the Well Site Services segment, operating income (loss) included a non-cash goodwill impairment charge of $127.1 million, a non-cash inventory impairment charge of $9.0 million, non-cash fixed asset impairment charges of $8.8 million and $4.3 million of severance and restructuring charges. In Corporate, operating income (loss) included $1.4 million of severance charges.


    OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
    SEGMENT EBITDA AND ADJUSTED SEGMENT EBITDA (B)
    (In Thousands)
    (unaudited)

     Three Months Ended Year Ended
     December 31,
    2021    		 September 30,
    2021    		 December 31,
    2020    		 December 31
    2021    		 December 31,
    2020
    Offshore/Manufactured Products:         
    Operating income (loss)$7,802  $1,764  $1,408  $15,447  $(80,794)
    Other income, net 21   881   82   770   542 
    Depreciation and amortization expense 5,502   5,662   5,376   22,190   21,881 
    Impairment of goodwill —   —   —   —   86,500 
    Impairment of inventories —   —   —   —   16,249 
    Segment EBITDA 13,325   8,307   6,866   38,407   44,378 
    Severance and restructuring charges 330   256   633   868   1,355 
    Adjusted Segment EBITDA$13,655  $8,563  $7,499  $39,275  $45,733 
              
    Downhole Technologies:         
    Operating loss$(4,525) $(5,035) $(8,019) $(13,470) $(224,414)
    Other income (expense), net —   (4)  16   (6)  (81)
    Depreciation and amortization expense 4,455   4,226   5,745   17,591   22,649 
    Impairment of goodwill —   —   —   —   192,502 
    Impairment of inventories —   2,113   —   2,113   5,921 
    Impairment of fixed and lease assets —   —   3,602   —   3,602 
    Segment EBITDA (70)  1,300   1,344   6,228   179 
    Severance and restructuring charges 202   129   703   809   2,018 
    Adjusted Segment EBITDA$132  $1,429  $2,047  $7,037  $2,197 
              
    Well Site Services:         
    Operating loss$(7,818) $(5,250) $(11,642) $(34,511) $(193,388)
    Other income 3,010   1,260   270   6,162   2,698 
    Depreciation and amortization expense 8,511   9,531   11,906   40,152   53,240 
    Impairment of goodwill —   —   —   —   127,054 
    Impairments of inventories 1,468   —   —   1,468   8,981 
    Impairments of fixed and lease assets 722   —   655   4,166   8,845 
    Segment EBITDA 5,893   5,541   1,189   17,437   7,430 
    Severance and restructuring charges 257   352   219   4,266   4,311 
    Adjusted Segment EBITDA$6,150  $5,893  $1,408  $21,703  $11,741 
              
    Corporate:         
    Operating loss$(6,732) $(7,618) $(10,111) $(32,258) $(35,744)
    Other income (expense) (9,320)  —   —   (5,298)  10,721 
    Depreciation and amortization expense 187   238   210   808   773 
    Release of foreign currency translation adjustments on
    liquidation of an international operation    		 9,320   —   —   9,320   — 
    Gains on extinguishment of debt —   —   —   (4,022)  (10,721)
    EBITDA (6,545)  (7,380)  (9,901)  (31,450)  (34,971)
    Severance charges —   —   1,169   1,555   1,385 
    Adjusted EBITDA$(6,545) $(7,380) $(8,732) $(29,895) $(33,586)


    OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES

    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
    CONSOLIDATED EBITDA AND ADJUSTED CONSOLIDATED EBITDA (A)
    (In Thousands)
    (unaudited)

     Three Months Ended Year Ended
     December 31,
    2021    		 September 30,
    2021    		 December 31,
    2020    		 December 31,
    2021    		 December 31,
    2020
              
    Net loss$(19,870) $(13,042) $(18,747) $(63,993) $(468,383)
    Interest expense, net 2,577   2,569   2,637   10,170   13,869 
    Income tax benefit (269)  (3,529)  (11,886)  (9,341)  (65,946)
    Depreciation and amortization expense 18,655   19,657   23,237   80,741   98,543 
    Impairments of goodwill —   —   —   —   406,056 
    Impairments of inventories 1,468   2,113   —   3,581   31,151 
    Impairments of fixed and lease assets 722   —   4,257   4,166   12,447 
    Release of foreign currency translation adjustments on
    liquidation of an international operation    		 9,320   —   —   9,320   — 
    Gains on extinguishment of 1.50% convertible senior notes —   —   —   (4,022)  (10,721)
    Consolidated EBITDA 12,603   7,768   (502)  30,622   17,016 
    Severance and restructuring charges 789   737   2,724   7,498   9,069 
    Adjusted Consolidated EBITDA$13,392  $8,505  $2,222  $38,120  $26,085 

    ________________

    (A)   The terms Consolidated EBITDA and Adjusted Consolidated EBITDA consist of net loss plus net interest expense, taxes, depreciation and amortization expense, non-cash asset impairment charges and a non-cash loss associated with the reclassification of unrealized foreign currency translation adjustments which were released upon the liquidation of an international operation, less gains on extinguishment of 1.50% convertible senior notes (the "2023 Notes") and adjustments for certain other items. Consolidated EBITDA and Adjusted Consolidated EBITDA are not measures of financial performance under generally accepted accounting principles and should not be considered in isolation from or as a substitute for net loss or cash flow measures prepared in accordance with generally accepted accounting principles or as measures of profitability or liquidity. Additionally, Consolidated EBITDA and Adjusted Consolidated EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included Consolidated EBITDA and Adjusted Consolidated EBITDA as supplemental disclosures because its management believes that Consolidated EBITDA and Adjusted Consolidated EBITDA provide useful information regarding its ability to service debt and to fund capital expenditures and provides investors a helpful measure for comparing its operating performance with the performance of other companies that have different financing and capital structures or tax rates. The Company uses Consolidated EBITDA and Adjusted Consolidated EBITDA to compare and to monitor the performance of the Company and its business segments to other comparable public companies and as a benchmark for the award of incentive compensation under its annual incentive compensation plan. The table above sets forth reconciliations of Consolidated EBITDA and Adjusted Consolidated EBITDA to net loss, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles.

    (B)   The terms EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment EBITDA consist of operating income (loss) plus other income (expense), depreciation and amortization expense, non-cash asset impairment charges and a non-cash loss associated with the reclassification of unrealized foreign currency translation adjustments which were released upon the liquidation of an international operation, less gains on extinguishment of the 2023 Notes and adjustments for certain other items. EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment EBITDA are not measures of financial performance under generally accepted accounting principles and should not be considered in isolation from or as a substitute for operating income (loss) or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. Additionally, EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment EBITDA as supplemental disclosures because its management believes that EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment EBITDA provide useful information regarding its ability to service debt and to fund capital expenditures and provides investors a helpful measure for comparing its operating performance with the performance of other companies that have different financing and capital structures or tax rates. The Company uses EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment EBITDA to compare and to monitor the performance of its business segments to other comparable public companies and as a benchmark for the award of incentive compensation under its annual incentive compensation plan. The tables above set forth reconciliations of EBITDA, Adjusted EBITDA, Segment EBITDA and Adjusted Segment EBITDA to operating income (loss), which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles.

    Company Contact:

    Lloyd A. Hajdik
    Oil States International, Inc.
    Executive Vice President, Chief Financial Officer and Treasurer
    713-652-0582
    SOURCE: Oil States International, Inc.


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