NYSE$OIS

Oil States International Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported a net loss due to significant items, but operational activity exceeded guidance excluding impairments.

Oil States International reported a net loss of $405.0 million, or $6.79 per share, on revenues of $219.7 million for the first quarter of 2020. The results were impacted by significant non-cash impairment charges. Despite these charges, the company's operational activity exceeded guidance, particularly in Completion Services and Downhole Technologies segments.

  • Net loss for Q1 2020 was $405.0 million, or $6.79 per share, including $396.8 million after-tax of significant items.
  • Q1 revenues reached $219.7 million.
  • Completion Services revenues modestly increased sequentially with improved EBITDA margins.
  • Downhole Technologies revenues improved 7% sequentially with increased EBITDA margins.

Headline financials

Total Revenue

$220M

Previous: $251M-12.3%
EPS (adj)

-$0.14

Previous: -$0.24+41.7%
Book-to-bill Ratio

1

No prior period
Capital Expenditures

-$5.88M

Previous: -$17.9M+67.2%
Free Cash Flow

-$411M

Previous: -$32.6M-1161.7%
Net Income

-$405M

Previous: -$14.6M-2665.2%
Operating Income

-$442M

Previous: -$10.8M-3975.7%
Gross Profit

$22.1M

Previous: $50.7M-56.5%
Cash & Equivalents

$24.3M

Previous: $15.3M+58.8%
Total Assets

$1.31B

Previous: $2.02B-35.0%
Stock-Based Comp

$1.16M

Previous: $4.43M-73.7%

Revenue & EPS history

Oil States · Revenue · Quarterly

$220M

Q1 2020-12.3%vs Q1 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Oil States · $132M total across 2 segments · Q1 2020

  • Offshore Manufactured Products
    $91.2M
  • Downhole Technologies
    $41.1M

Forward guidance

Oil States anticipates challenging market conditions for the remainder of 2020 and into 2021, focusing on liquidity preservation and cost management. They are amending their revolving credit facility to an asset-based lending arrangement and taking actions to adjust to declining revenues.

Tailwinds

  • Working with lenders to amend the revolving credit facility into an asset-based lending arrangement.
  • Taking significant cost reduction actions to adjust to declining revenues.
  • Closely managing debt, working capital, and cash flow generation.
  • Expects to complete the amendment process in the second quarter of 2020.
  • Believes it will have sufficient liquidity over the next twelve months to fund its liabilities.

Headwinds

  • Anticipates challenging market conditions for the remainder of 2020 and into 2021.
  • Operational activity across U.S. land-based businesses is declining quickly in the second quarter.
  • Expects to fail to comply with the total net leverage ratio covenant in the third quarter of 2020 due to projected declines in consolidated EBITDA.
  • Amendment process remains subject to completion of final documentation and credit approval by the bank group.
  • Uncertainty regarding the ability to complete the amendment process within the estimated time frame or on the expected terms.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.0%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+1.0%

Avg return

30 days after

53%

36 / 68 earnings

Positive

+25.0%

Q4 2025

Best reaction

-23.9%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-13.6%-22.3%-22.2%
Q4 2025+25.0%+34.3%+21.6%
Q3 2025+3.5%-2.4%-4.1%
Q1 2025+23.1%+18.8%+23.9%
Q4 2024-11.7%-0.7%-1.5%
Q3 2024+13.2%+12.9%+31.6%
Q2 2024+17.1%+12.4%+9.9%
Q1 2024-23.9%-24.2%-14.3%
Q4 2023-6.9%-9.0%+0.3%
Q3 2023+4.6%+1.0%-3.8%
Q2 2023-11.8%-10.9%-13.7%
Q1 2023-5.6%-8.4%-7.8%
Q4 2022+9.1%+6.0%-15.8%
Q3 2022-0.9%+13.5%+11.8%
Q2 2022-0.8%+0.2%+7.4%
Q1 2022+4.3%+5.4%+19.9%
Q4 2021-1.2%-14.8%+1.1%
Q3 2021+1.3%+12.5%-20.8%
Q2 2021-0.7%-8.7%-0.8%
Q1 2021+6.6%+3.9%+14.6%
Q4 2020-4.5%+4.8%-6.6%
Q3 2020-1.2%+13.9%+89.3%
Q2 2020-6.7%-7.1%-8.5%
Q1 2020+20.7%+14.4%+48.8%
Q4 2019-7.4%-18.5%-81.7%
Q3 2019+7.3%+11.2%+16.0%
Q2 2019+8.1%+1.8%-0.8%
Q1 2019+1.8%+4.6%-13.0%
Q4 2018-1.5%+4.7%-10.5%
Q3 2018+0.9%-2.1%-2.0%
Q2 2018+3.1%-2.7%+1.8%
Q1 2018+12.6%+8.9%+6.1%
Q4 2017-2.7%-1.4%-9.0%
Q3 2017-4.6%+2.0%+0.7%
Q2 2017-9.0%-5.8%-17.7%
Q1 2017-8.3%-11.0%-10.0%
Q4 2016-8.9%-11.3%-19.9%
Q3 2016-4.5%-6.9%+5.6%
Q2 2016+4.3%+7.1%+11.7%
Q1 2016+4.2%
Q4 2015-1.0%
Q3 2015+2.0%
Q2 2015+8.9%
Q1 2015+9.5%
Q4 2014-0.5%
Q3 2014+0.9%
Q2 2014-2.2%
Q1 2014-2.5%
Q4 2013-2.8%
Q3 2013+1.1%
Q2 2013+2.4%
Q1 2013-3.3%
Q4 2012-1.7%
Q3 2012-1.6%
Q2 2012-1.7%
Q1 2012+8.3%
Q4 2011+1.3%
Q3 2011+4.3%
Q2 2011+1.8%
Q1 2010+5.4%
Q1 2011+2.4%
Q4 2008-4.1%
Q4 2010-4.1%
Q3 2010+0.5%
Q3 2009+0.5%
Q2 2010+2.9%
Q2 2009+2.9%
Q4 2009+2.9%

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