July 28, 2016 - 5:03 PM EDT
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Civeo Corporation Reports Second Quarter 2016 Results

HOUSTON, July 28, 2016 (GLOBE NEWSWIRE) -- Civeo Corporation (NYSE:CVEO) today reported financial and operating results for the second quarter ended June 30, 2016.

Highlights include:     

  • Successfully and safely served our customers, first-responders and evacuees through the devastating Ft. McMurray forest fires in Alberta, Canada

  • Financial results by each division and on a consolidated basis exceeded initial expectations as the Company continued its cost control diligence and experienced higher occupancy in Canada after the Ft. McMurray forest fires

  • Reduced debt by $17 million

  • Secured new contracts totaling $21 million in revenue for 2016 and 2017

“Our operational execution in the second quarter was exceptional in light of the massive forest fires in the oil sands region of Canada and the continuing difficult global macroeconomic environment for commodities.  We continued our cost control diligence and positive cash flow generation resulting in further debt reductions,” said Bradley J. Dodson, President and Chief Executive Officer.

“Our Canadian operations benefited from efforts to reduce our operating costs, as well as increased demand for rooms as a result of the recovery efforts after the forest fires in the Fort McMurray area of Alberta that prompted evacuations both from the town and from nearby oil sands operations in May.  Civeo responded by making rooms available both to Fort McMurray residents and firefighters battling the blaze.

“I want to thank our Canadian team for their tireless work during the fire.  They successfully ramped up our capacity very rapidly -- without any safety incidents or loss of assets -- and took excellent care of evacuees and emergency responders,” he said.

SECOND QUARTER 2016 RESULTS

In the second quarter of 2016, the Company generated revenues of $107.0 million and reported a net loss of $11.5 million, or a loss of $0.11 per share, which included the impact of a $0.2 million pre-tax expense related to the Company’s migration to Canada.   Adjusted EBITDA was $26.9 million for the quarter, and the Company generated operating cash flow of $23.9 million and free cash flow of $19.2 million as a result of a strict cost containment initiative.

(EBITDA is a non-GAAP financial measure that is defined as net income plus interest, taxes, depreciation and amortization, and Adjusted EBITDA is defined as EBITDA adjusted to exclude impairment charges and certain other costs. Free cash flow is a non-GAAP financial measure that is defined as net cash flows provided by operating activities less capital expenditures plus proceeds from asset sales.  Please see a reconciliation to GAAP measures at the end of this news release.)

By comparison, in the second quarter of 2015, the Company generated revenues of $143.1 million and a net loss of $13.5 million, or a loss of $0.13 per share, including the impact of a $9.5 million pre-tax ($6.6 million after-tax) charge, or $0.06 per share, for the impairment of certain fixed assets at a village in Australia and a $2.4 million pre-tax ($1.6 million after-tax) expense, or $0.02 per share, in connection with the Company’s migration to Canada.   Adjusted EBITDA was $40.7 million, operating cash flow was $45.4 million and free cash flow was $32.7 million during the prior period.

The year-over-year decline in revenues and Adjusted EBITDA was primarily due to lower occupancy levels caused by decreased customer activity in both the Canadian oil sands and Australian mining industries.  Revenue and Adjusted EBITDA were also affected by the negative impact of a strengthening U.S. dollar, which appreciated 5% against the Canadian dollar and 4% against the Australian dollar on a year-over-year basis.

BUSINESS SEGMENT RESULTS

(Unless otherwise noted, the following discussion compares the quarterly results for the second quarter of 2016 to the second quarter of 2015.  The results discussed below exclude the fixed asset impairment expense and migration charges noted above.)

Canada

The Canadian segment generated revenues of $77.1 million, operating income of $0.7 million, and Adjusted EBITDA of $23.9 million in the second quarter of 2016 compared to revenues of $90.1 million, operating loss of $3.8 million, and Adjusted EBITDA of $24.5 million in the second quarter of 2015. Results reflect the impact of a weaker Canadian dollar relative to the U.S. dollar, which reduced revenues by $3.7 million and Adjusted EBITDA by $1.1 million.

On a constant currency basis, lodge revenues declined 1% due to lower room rates. However, this was largely offset by an increase in rented rooms due to the Fort McMurray fire in May 2016, as well as the ramping up of the Company’s Mariana Lake Lodge in the third quarter and the Sitka Lodge in fourth quarter of 2015.  Mobile, open camp and product revenues all declined due to overall lower activity levels.

Australia

The Australian segment generated revenues of $27.5 million, operating loss of $0.9 million, and Adjusted EBITDA of $11.0 million in the second quarter of 2016, compared to revenues of $38.3 million, operating loss of $4.9 million, and Adjusted EBITDA of $19.5 million in the second quarter of 2015. Results were impacted by a slightly weaker Australian dollar relative to the U.S. dollar, which decreased revenues by $1.2 million and Adjusted EBITDA by $0.5 million. On a constant currency basis, segment revenues declined 25% due to lower occupancy related to the continuing customer activity slowdown in the Australian mining industry, primarily in the Bowen Basin.

U.S.

The U.S. segment generated revenues of $2.4 million, operating loss of $3.8 million, and negative Adjusted EBITDA of $2.4 million in the second quarter of 2016, compared to revenues of $14.8 million, operating loss of $1.8 million, and Adjusted EBITDA of $1.9 million in the second quarter of 2015.  Results reflected lower U.S. drilling activity in the Bakken, Rockies and Texas markets, along with decreased sales from Civeo’s offshore business.

INCOME TAXES

The Company recognized an income tax benefit of $0.9 million, which reflected an effective tax rate of 7.7% in the second quarter of 2016. By comparison, during the second quarter 2015, the Company recognized an income tax benefit of $5.9 million, which resulted in an effective tax rate of 30.6%. 

FINANCIAL CONDITION

As of June 30, 2016, the Company had total available liquidity of approximately $131.9 million, comprising $129.6 million available under its credit facility and $2.3 million of cash on hand.  The Company made $17 million in debt reduction payments during the second quarter, for a total of $28 million in debt reduction payments during the first six months of 2016. 

Capital expenditures totaled $5.1 million in the second quarter compared to $13.4 million spent in the same period last year.  Year-to-date, capital expenditures totaled $9.9 million, compared with $24.1 million for the first six months of 2015.   Civeo currently expects capital expenditures of approximately $25 million for the full year 2016.

THIRD QUARTER AND FULL YEAR 2016 GUIDANCE

For the third quarter of 2016, the Company expects revenues of $93 million to $99 million and Adjusted EBITDA of $18 million to $21 million. For the full year 2016, the Company expects revenues of $390 million to $400 million and Adjusted EBITDA of $74 million to $82 million.  (Please see a reconciliation to GAAP measures at the end of this news release.)

The commercial decision on a pending LNG Canada project in British Columbia for which the Company was awarded an accommodations construction contract in early May has been delayed; meanwhile, Civeo and its partner, Bird Construction, will continue preliminary planning and engineering work for the new lodge facility. The Company remains optimistic that multiple liquefied natural gas projects that are in the planning stages in British Columbia represent strong growth opportunities for Civeo longer term.

CONFERENCE CALL

Civeo will host a conference call to discuss its second quarter 2016 financial results tomorrow at 11:00 a.m. Eastern time.  This call will be webcast and can be accessed at Civeo’s website at www.civeo.com. Participants may also join the conference call by dialing (877) 407-0672 in the United States or (412) 902-0003 internationally and asking for the Civeo call. A replay will be available after the call by dialing (877) 660-6853 in the United States or (201) 612-7415 internationally and entering the passcode 13641580#.

ABOUT CIVEO

Civeo Corporation is a leading provider of workforce accommodations with prominent market positions in the Canadian oil sands and the Australian natural resource regions. Civeo offers comprehensive solutions for housing hundreds or thousands of workers with its long-term and temporary accommodations and provides catering, facility management, water systems and logistics services. Civeo currently owns a total of 19 lodges and villages in operation in Canada and Australia, with an aggregate of more than 23,000 rooms. Civeo is publicly traded under the symbol CVEO on the New York Stock Exchange. For more information, please visit Civeo's website at www.civeo.com.

FORWARD LOOKING STATEMENTS

This news release contains forward-looking statements within the meaning 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 then current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the accommodations industry, risks associated with the level of supply and demand for oil, coal, natural gas, iron ore and other minerals, including the level of activity and developments in the Canadian oil sands, the level of demand for coal and other natural resources from Australia, and fluctuations in the current and future prices of oil, coal, natural gas, iron ore and other minerals, risks associated with currency exchange rates, risks associated with the Company’s migration to Canada, including, among other things, risks associated with changes in tax laws or their interpretations, risks associated with the development of new projects, including whether such projects will continue in the future, and other factors discussed in the Company’s annual report on Form 10-K for the year ended December 31, 2015, and other reports the Company may file from time to time with the U.S. Securities and Exchange Commission.  Each forward-looking statement contained in this news release speaks only as of the date of this release. Except as required by law, the Company expressly disclaims any intention or obligation to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.

Financial Schedules Follow


  
CIVEO CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
 
          
  THREE MONTHS ENDED
JUNE 30,
 SIX MONTHS ENDED
JUNE 30,
 
   2016   2015   2016   2015  
          
Revenues $107,035  $143,147  $202,071  $314,134  
          
Costs and expenses:         
Cost of sales and services  64,586   89,424   130,529   192,335  
Selling, general and administrative expenses  15,295   18,419   28,412   35,105  
Depreciation and amortization expense    33,168     42,541     66,723     84,987  
Impairment expense    -      9,473     8,400     12,211  
Other operating expense    -      (2,573)    218     (1,243) 
     113,049     157,284     234,282     323,395  
Operating loss    (6,014)    (14,137)    (32,211)    (9,261) 
          
Interest expense to third-parties, net of capitalized interest    (5,925)    (6,248)    (10,869)    (11,857) 
Loss on extinguishment of debt    -      -      (302)    -   
Interest income    28     687     114     1,809  
Other income    (392)    566     (280)    1,564  
Loss before income taxes    (12,303)    (19,132)    (43,548)    (17,745) 
Income tax benefit    949     5,863     5,520     4,706  
Net loss    (11,354)    (13,269)    (38,028)    (13,039) 
Less:  Net income attributable to noncontrolling interest    132     192     280     438  
Net loss attributable to Civeo Corporation $  (11,486) $  (13,461) $  (38,308) $  (13,477) 
          
Net loss per share attributable to Civeo Corporation common stockholders:             
Basic $  (0.11) $  (0.13) $  (0.36) $  (0.13) 
Diluted $  (0.11) $  (0.13) $  (0.36) $  (0.13) 
          
Weighted average number of common shares outstanding:         
Basic    107,033     106,626     106,923     106,543  
Diluted    107,033     106,626     106,923     106,543  
          


 

  
CIVEO CORPORATION
CONSOLIDATED BALANCE SHEETS
 
(in thousands) 
      
  JUNE 30,
 2016
 DECEMBER 31,
 2015
 
  (UNAUDITED)   
Current assets:     
Cash and cash equivalents $  2,255  $  7,837  
Accounts receivable, net    72,404     61,467  
Inventories    4,931     5,631  
Prepaid expenses and other current assets    22,139     15,024  
Total current assets    101,729     89,959  
      
Property, plant and equipment, net    906,322     931,914  
Other intangible assets, net    32,359     35,309  
Other noncurrent assets    11,120     9,347  
Total assets $  1,051,530  $  1,066,529  
      
Current liabilities:     
Accounts payable $  33,236  $  24,609  
Accrued liabilities    12,475     14,834  
Income taxes    44     1,104  
Current portion of long-term debt    15,934     17,461  
Deferred revenue    14,053     7,747  
Other current liabilities    294     493  
Total current liabilities    76,036     66,248  
      
Long-term debt to third-parties    375,183     379,416  
Deferred income taxes    22,270     25,391  
Other noncurrent liabilities    32,375     31,704  
Total liabilities    505,864     502,759  
      
Shareholders' equity:     
Common shares    -      -   
Additional paid-in capital    1,309,007     1,305,930  
Accumulated deficit    (414,684)    (376,376) 
Treasury stock    (65)    -   
Accumulated other comprehensive loss    (349,437)    (366,309) 
   Total Civeo Corporation shareholders' equity      544,821     563,245  
Noncontrolling interest    845     525  
Total shareholders' equity    545,666     563,770  
Total liabilities and shareholders' equity $  1,051,530  $  1,066,529  
      

 

  
CIVEO CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
(in thousands) 
      
  SIX MONTHS ENDED
JUNE 30,
 
   2016   2015  
      
Cash flows from operating activities:     
Net loss $  (38,028) $  (13,039) 
Adjustments to reconcile net loss to net cash provided by operating activities:       
Depreciation and amortization    66,723     84,987  
Impairment charges    8,400     12,211  
Inventory write-down    -      1,015  
Loss on extinguishment of debt    302     -   
Deferred income tax benefit    (8,026)    (7,469) 
Non-cash compensation charge    3,077     2,331  
Losses (gains) on disposals of assets    377     (642) 
Provision for loss on receivables    (112)    1,055  
Other, net    2,282     (164) 
Changes in operating assets and liabilities:     
Accounts receivable    (6,140)    38,761  
Inventories    979     5,352  
Accounts payable and accrued liabilities    4,670     (14,561) 
Taxes payable    (565)    (7,324) 
Other current assets and liabilities, net    1,189     (8,223) 
Net cash flows provided by operating activities    35,128     94,290  
      
Cash flows from investing activities:     
Capital expenditures, including capitalized interest    (9,893)    (24,102) 
Proceeds from disposition of property, plant and equipment    2,105     1,844  
Other, net    (1,542)    -   
Net cash flows used in investing activities    (9,330)    (22,258) 
      
Cash flows from financing activities:     
Proceeds from issuance of common stock    -      500  
Term loan repayments    (33,097)    -   
Revolver borrowings (repayments), net    4,755     -   
Debt issuance costs    (2,022)    -   
Net cash flows provided by (used in) financing activities    (30,364)    500  
      
Effect of exchange rate changes on cash    (1,016)    (20,677) 
Net change in cash and cash equivalents    (5,582)    51,855  
      
Cash and cash equivalents, beginning of period    7,837     263,314  
      
Cash and cash equivalents, end of period $  2,255  $  315,169  
      

 

 
CIVEO CORPORATION
SEGMENT DATA
(in thousands)
(unaudited)
         
  THREE MONTHS ENDED
JUNE 30,
 SIX MONTHS ENDED
JUNE 30,
   2016   2015   2016   2015 
Revenues        
Canada $  77,107  $  90,072  $  142,629  $  206,972 
Australia    27,505     38,268     53,015     80,127 
United States    2,423     14,807     6,427     27,035 
Total revenues $  107,035  $  143,147  $  202,071  $  314,134 
         
EBITDA (1)        
Canada $  23,743  $  24,391  $  37,791  $  61,903 
Australia    11,046     9,910     21,789     30,633 
United States    (2,431)    1,906     (13,901)    (1,710)
Corporate and eliminations    (5,728)    (7,429)    (11,727)    (13,974)
Total EBITDA $  26,630  $  28,778  $  33,952  $  76,852 
         
Adjusted EBITDA (1)        
Canada $  23,861  $  24,549  $  38,032  $  62,061 
Australia    11,046     19,522     21,809     40,245 
United States    (2,431)    1,906     (5,501)    2,043 
Corporate and eliminations      (5,610)    (5,283)    (10,717)    (10,668)
Total adjusted EBITDA $  26,866  $  40,694  $  43,623  $  93,681 
         
Operating income (loss)        
Canada $  683  $  (3,820) $  (9,016) $  8,300 
Australia    (914)    (4,882)    (2,536)    1,845 
United States    (3,792)    (1,801)    (17,391)    (8,695)
Corporate and eliminations    (1,991)    (3,634)    (3,268)    (10,711)
Total operating loss $  (6,014) $  (14,137) $  (32,211) $  (9,261)
         
(1) Please see Non-GAAP Reconciliation Schedule. 
         

 

  
CIVEO CORPORATION
NON-GAAP RECONCILIATIONS
(in thousands)
(unaudited)
 
          
  THREE MONTHS ENDED
JUNE 30,
 SIX MONTHS ENDED
JUNE 30,
 
   2016   2015   2016   2015  
          
EBITDA (1) $  26,630  $  28,778  $  33,952  $  76,852  
Adjusted EBITDA (1) $  26,866  $  40,694  $  43,623  $  93,681  
Free Cash Flow (2) $  19,224  $  32,705  $  27,340  $  72,032  
          
(1) The term EBITDA is defined as net income plus interest, taxes, depreciation and amortization. The term Adjusted EBITDA is defined as EBITDA adjusted to exclude impairment charges and certain other costs such as those incurred associated with the Company's redomiciliation.  EBITDA and Adjusted 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 income or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. Additionally, EBITDA and Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included EBITDA and Adjusted EBITDA as supplemental disclosures because its management believes that EBITDA and Adjusted EBITDA provides useful information regarding our 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 and Adjusted 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 following table sets forth a reconciliation of EBITDA and Adjusted EBITDA to net income, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles (in thousands) (unaudited): 
          
  THREE MONTHS ENDED
JUNE 30,
 SIX MONTHS ENDED
JUNE 30,
 
   2016   2015   2016   2015  
          
Net loss $  (11,486) $  (13,461) $  (38,308) $  (13,477) 
Income tax provision (benefit)    (949)    (5,863)    (5,520)    (4,706) 
Depreciation and amortization    33,168     42,541     66,723     84,987  
Interest income    (28)    (687)    (114)    (1,809) 
Loss on extinguishment of debt    -      -      302     -   
Interest expense    5,925     6,248     10,869     11,857  
EBITDA $  26,630  $  28,778  $  33,952  $  76,852  
Adjustments to EBITDA         
Migration costs (a)    236     2,443     1,271     3,603  
Loss on assets held for sale (b)    -        -      3,753  
Impairment of fixed assets (c)    -      9,473     8,400     9,473  
Adjusted EBITDA $  26,866  $  40,694  $  43,623  $  93,681  
          
(a) Relates to costs incurred associated with the Company's redomiciliation to Canada.  For 2016, the $0.2 million and $1.3 million in costs ($0.2 million and $1.2 million, respectively, after-tax, or $0.00 and $0.01, respectively, per diluted share, respectively), which are primarily corporate in nature, are included in Selling, general and administrative costs on the statements of operations.  For 2015, the $2.4 million and $3.6 million in costs ($1.6 million and $2.4 million, respectively, after-tax, or $0.02 and $0.03, respectively, per diluted share, respectively), which are primarily corporate in nature, are included in Selling, general and administrative costs on the statements of operations.  
          
(b) Relates to the first quarter 2015 decision to close a manufacturing facility in the United States.  As a result, the related assets were written down to their estimated sales proceeds, less costs to sell.   We recorded a pre-tax loss of $3.8 million ($2.4 million after-tax, or $0.02 per diluted share), of which $1.1 million is included in cost of sales and services and $2.7 million is included in Impairment expense on the statements of operations. 
          
(c) 2016 relates to the impairment of assets in the United States.  We recorded a pre-tax loss of $8.4 million ($8.4 million after-tax, or $0.08 per diluted share), which is included in Impairment expense on the statements of operations.  2015 relates to the impairment of certain fixed assets which carrying value we have determined is not to be recoverable.  The $9.5 million impairment ($6.6 million after-tax, or $0.06 per diluted share), which is related to our Australian segment, is included in Impairment expense on the unaudited statements of operations.  
          
(2) The term Free Cash Flow is defined as net cash flows provided by operating activities less capital expenditures plus proceeds from asset sales. Free Cash Flow is not a measure of financial performance under generally accepted accounting principles and should not be considered in isolation from or as a substitute for cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. Additionally, Free Cash Flow may not be comparable to other similarly titled measures of other companies. The Company has included Free Cash Flow as a supplemental disclosure because its management believes that Free Cash Flow provides useful information regarding the cash flow generating ability of its business relative to its capital expenditure and debt service obligations. The Company uses Free Cash Flow to compare and to understand, manage, make operating decisions and evaluate its business.  It is also used as a benchmark for the award of incentive compensation under its Free Cash Flow plan.  
  
The following table sets forth a reconciliation of Free Cash Flow to Net Cash Flows Provided by Operating Activities, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles (in thousands) (unaudited): 
          
  THREE MONTHS ENDED
JUNE 30,
 SIX MONTHS ENDED
JUNE 30,
 
   2016   2015   2016   2015  
          
Net Cash Flows Provided by Operating Activities  $  23,850  $  45,388  $  35,128  $  94,290  
Capital expenditures, including capitalized interest    (5,132)    (13,400)    (9,893)    (24,102) 
Proceeds from disposition of property, plant and equipment    506     717     2,105     1,844  
Free Cash Flow $  19,224  $  32,705  $  27,340  $  72,032  
                  

 

  
CIVEO CORPORATION
NON-GAAP RECONCILIATIONS - GUIDANCE
(in millions)
(unaudited)
 
          
  THREE MONTHS ENDING
SEPTEMBER 30, 2016
 YEAR ENDING
DECEMBER 31, 2016
 
EBITDA Range (1) $  18.0  $  21.0  $  64.3  $  72.3  
Adjusted EBITDA Range (1) $  18.0  $  21.0  $  74.0  $  82.0  
          
(1) The term EBITDA is defined as net income plus interest, taxes, depreciation and amortization. The term Adjusted EBITDA is defined as EBITDA adjusted to exclude impairment charges and certain other costs such as those incurred associated with the Company's redomiciliation.  EBITDA and Adjusted 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 income or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. Additionally, EBITDA and Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included EBITDA and Adjusted EBITDA as supplemental disclosures because its management believes that EBITDA and Adjusted EBITDA provides useful information regarding our 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 and Adjusted 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 following table sets forth a reconciliation of EBITDA and Adjusted EBITDA to net income, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles (in millions) (unaudited): 
          
  THREE MONTHS ENDING
SEPTEMBER 30, 2016
 YEAR ENDING
DECEMBER 31, 2016
 
          
Net loss $  (19.6) $  (16.6) $  (84.4) $  (76.9) 
Income tax benefit    (1.0)    (1.0)    (6.3)    (5.8) 
Depreciation and amortization    33.0     33.0     133.0     133.0  
Interest income    -      -      (0.2)    (0.2) 
Loss on extinguishment of debt    -      -      0.3     0.3  
Interest expense    5.6     5.6     21.9     21.9  
EBITDA $  18.0  $  21.0  $  64.3  $  72.3  
Adjustments to EBITDA         
Migration costs (a)        1.3     1.3  
Impairment of fixed assets (b)        8.4     8.4  
Adjusted EBITDA $  18.0  $  21.0  $  74.0  $  82.0  
          
(a) Relates to costs incurred associated with the Company's redomiciliation to Canada.  The $1.3 million in costs ($1.2 million, after-tax), which are primarily corporate in nature, are included in Selling, general and administrative costs on the statements of operations.  
          
(b) 2016 relates to the impairment of assets in the United States.  We recorded a pre-tax loss of $8.4 million ($8.4 million after-tax), which is included in Impairment expense on the statements of operations.  
  

 

  
CIVEO CORPORATION
SUPPLEMENTAL QUARTERLY SEGMENT AND OPERATING DATA
(U.S. dollars in thousands, except for room counts and average daily rates)
(unaudited)
 
          
  THREE MONTHS ENDED
JUNE 30,
 SIX MONTHS ENDED
JUNE 30,
 
   2016   2015   2016   2015  
          
Supplemental Operating Data - Canadian Segment         
Revenues         
Lodge revenues (1) $  66,301  $  70,351  $  121,187  $  158,188  
Mobile, open camp and product revenues    10,806     19,721     21,442     48,784  
   Total Canadian revenues $  77,107  $  90,072  $  142,629  $  206,972  
          
Average available lodge rooms (2)    13,929     13,229     14,266     13,225  
          
Rentable rooms (3)    10,902     10,398     10,003     10,471  
          
Average daily rates (4) $  108  $  120  $  110  $  127  
          
Occupancy in lodges (5)  62%  63%  61%  65% 
          
Canadian dollar to U.S. dollar $  0.776  $  0.814  $  0.752  $  0.810  
          
          
Supplemental Operating Data - Australian Segment         
Revenues         
Village revenues (1) $  27,505  $  38,268  $  53,015  $  80,127  
          
Average available village rooms (2)    9,312     9,296     9,304     9,296  
          
Rentable rooms (3)    8,730     8,921     8,713     9,022  
          
Average daily rates (4) $  76  $  77  $  72  $  78  
          
Occupancy in villages (5)  45%  61%  46%  62% 
          
Australian dollar to U.S. dollar $  0.746  $  0.778  $  0.734  $  0.782  
          
          
(1)  Includes revenue related to rooms as well as the fees associated with catering, laundry and other services including facilities management. 
          
(2)  Average available rooms relate to Canadian lodges and Australian villages and includes rooms that are utilized for our personnel. 
          
(3)  Rentable rooms relate to Canadian lodges and Australian villages and excludes rooms that are utilized for our personnel and out-of-service rooms. 
          
(4)  Average daily rate is based on rentable rooms and lodge/village revenue. 
          
(5)  Occupancy represents total billed days divided by rentable days.  Rentable days excludes staff rooms and out-of-service rooms. 
          

 

Contacts:

Frank C. Steininger
Civeo Corporation
Senior Vice President and Chief Financial Officer
713-510-2400

Anne Pearson / Lisa Elliott
Dennard ▪ Lascar Associates
713-529-6600

Source: GlobeNewswire (July 28, 2016 - 5:03 PM EDT)

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