NYSE$OIS

Oil States International Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported a net loss due to goodwill impairment and decreased revenues.

Oil States International reported a net loss of $13.4 million, or $0.21 per diluted share, for Q1 2024. Consolidated revenues decreased by 20% sequentially to $167.3 million, and Adjusted EBITDA was $15.5 million. The results were impacted by seasonality, the timing of revenue recognition in the Offshore Manufactured Products segment, and a non-cash goodwill impairment charge of $10.0 million.

  • Net loss of $13.4 million, or $0.21 per diluted share, reported for the quarter, including a $10.0 million non-cash goodwill impairment charge.
  • Excluding goodwill and other charges, net loss was $1.9 million, or $0.03 per diluted share (non-GAAP).
  • Consolidated revenues decreased 20% sequentially to $167.3 million, driven by the timing of order conversions from backlog.
  • Adjusted EBITDA was $15.5 million.

Headline financials

Total Revenue

$167M

Previous: $196M-14.7%
EPS

-$0.21

Previous: $0.03-800.0%
Adjusted EBITDA

$15.5M

No prior period
Offshore Mfg. Products Adj. EBITDA

$15.8M

No prior period
Completion & Production Services Adj. EBITDA

$6.59M

No prior period
Downhole Technologies Adj. EBITDA

$2.19M

No prior period
Capital Expenditures

-$10.1M

Previous: -$6.57M-53.7%
Free Cash Flow

-$13.4M

Previous: -$4.41M-203.3%
Net Income

-$13.4M

Previous: $2.16M-719.7%
Operating Income

-$11.2M

Previous: $5.88M-290.2%
Gross Profit

$35.3M

Previous: $45.5M-22.3%
Cash & Equivalents

$24.1M

Previous: $15.8M+52.2%
Total Assets

$1.02B

Previous: $1.05B-3.3%
Stock-Based Comp

$1.75M

Previous: $1.59M+10.3%

Revenue & EPS history

Oil States · Revenue · Quarterly

$167M

Q1 2024-14.7%vs Q1 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Oil States · $134M total across 2 segments · Q3 2023

  • Offshore Manufactured Products
    $111M+15.7%
  • Downhole Technologies
    $23.4M-28.6%

Forward guidance

Oil States anticipates continued expansion in offshore activity globally, coupled with enhanced competitive positioning through recent technology introductions. They expect the benefits of their expanded technology offering to extend beyond the next couple of years.

Tailwinds

  • Continued expansion in offshore activity globally.
  • Enhanced competitive positioning in each business segment through recent new technology introductions.
  • Benefits of expanded technology offering are expected to extend well beyond the next couple of years.
  • Received two 2024 Spotlight on New Technology™ Awards from the Offshore Technology Conference for Ultra-deepwater Swift™ connector design and ACTIVEHub™ platform with ACTIVELatch™ technology.
  • The company amended its ABL Facility during the quarter to extend the maturity date to February 16, 2028.

Headwinds

  • First quarter consolidated revenues and Adjusted EBITDA decreased sequentially due primarily to the impacts of seasonality and timing of revenue recognition for percentage-of-completion projects in Offshore Manufactured Products segment.
  • Certain orders moved out of the quarter, resulting in a quarterly book-to-bill ratio of 0.8x.
  • Completion Services and Downhole Technologies businesses have begun to recover from the fourth quarter 2023 activity slow-down, but progress was slow.
  • Cost control and other reduction measures are being implemented in areas with lower activity, particularly the gas basins.
  • Company does not expect much recovery over the next couple of quarters.

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 2024

Historical avgQ1 2024

+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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