- Consolidated revenues of $165 million
- Net income of $2 million, or $0.03 per share
- Adjusted net income totaled $5 million, or $0.08 per share, excluding restructuring charges (a non-GAAP measure(1))
- Adjusted EBITDA (a non-GAAP measure(1)) of $21 million
- Generated cash flows from operations of $31 million
- Purchased $6 million principal amount of convertible senior notes and $4 million of common stock
- Offshore Manufactured Products segment’s backlog increased 10% sequentially, with quarterly bookings of $145 million yielding a book-to-bill ratio of 1.3x
HOUSTON–(BUSINESS WIRE)–Oil States International, Inc. (NYSE: OIS):
|
Three Months Ended |
% Change |
||||||||||||||||
|
(Unaudited, In Thousands, Except Per Share Amounts) |
September 30, |
June 30, |
September 30, |
Sequential |
Year-over-Year |
||||||||||||
|
Consolidated results: |
|||||||||||||||||
|
Revenues |
$ |
165,180 |
$ |
165,406 |
$ |
174,348 |
— |
% |
(5 |
)% |
|||||||
|
Operating income (loss)(2) |
4,748 |
5,277 |
(11,041 |
) |
(10 |
)% |
n.m. |
||||||||||
|
Net income (loss) |
1,900 |
2,811 |
(14,349 |
) |
(32 |
)% |
n.m. |
||||||||||
|
Adjusted net income, excluding charges and credits(1) |
4,717 |
5,401 |
2,696 |
(13 |
)% |
75 |
% |
||||||||||
|
Adjusted EBITDA(1) |
20,804 |
21,089 |
21,531 |
(1 |
)% |
(3 |
)% |
||||||||||
|
Revenues by segment: |
|||||||||||||||||
|
Offshore Manufactured Products |
$ |
108,627 |
$ |
106,586 |
$ |
102,234 |
2 |
% |
6 |
% |
|||||||
|
Completion and Production Services |
27,525 |
29,424 |
40,099 |
(6 |
)% |
(31 |
)% |
||||||||||
|
Downhole Technologies |
29,028 |
29,396 |
32,015 |
(1 |
)% |
(9 |
)% |
||||||||||
|
Revenues by destination: |
|||||||||||||||||
|
Offshore and international |
$ |
123,356 |
$ |
119,114 |
$ |
113,856 |
4 |
% |
8 |
% |
|||||||
|
U.S. land |
41,824 |
46,292 |
60,492 |
(10 |
)% |
(31 |
)% |
||||||||||
|
Operating income (loss) by segment(2): |
|||||||||||||||||
|
Offshore Manufactured Products |
$ |
17,603 |
$ |
16,989 |
$ |
19,310 |
4 |
% |
(9 |
)% |
|||||||
|
Completion and Production Services |
948 |
1,877 |
(18,267 |
) |
(49 |
)% |
n.m. |
||||||||||
|
Downhole Technologies |
(4,667 |
) |
(3,992 |
) |
(3,653 |
) |
(17 |
)% |
(28 |
)% |
|||||||
|
Corporate |
(9,136 |
) |
(9,597 |
) |
(8,431 |
) |
5 |
% |
(8 |
)% |
|||||||
|
Adjusted Segment EBITDA(1): |
|||||||||||||||||
|
Offshore Manufactured Products |
$ |
22,275 |
$ |
21,105 |
$ |
23,303 |
6 |
% |
(4 |
)% |
|||||||
|
Completion and Production Services |
7,953 |
8,254 |
5,413 |
(4 |
)% |
47 |
% |
||||||||||
|
Downhole Technologies |
(689 |
) |
1,220 |
1,078 |
n.m. |
n.m. |
|||||||||||
|
Corporate |
(8,735 |
) |
(9,490 |
) |
(8,263 |
) |
8 |
% |
(6 |
)% |
|||||||
|
___________________ |
|
|
(1) |
These are non-GAAP measures. See “Reconciliations of GAAP to Non-GAAP Financial Information” tables below for reconciliations to their most comparable GAAP measures as well as further clarification and explanation. |
|
(2) |
Operating income (loss) included charges totaling: $3.6 million for the three months ended September 30, 2025; $3.7 million for the three months ended June 30, 2025; and $18.2 million for the three months ended September 30, 2024. See “Segment Data” below for additional information. |
Oil States International, Inc. reported net income of $1.9 million, or $0.03 per share, and Adjusted EBITDA of $20.8 million for the third quarter of 2025 on revenues of $165.2 million. Reported third quarter 2025 net income included charges of $3.6 million ($2.8 million after-tax or $0.05 per share) associated primarily with the continued exit of certain U.S. land-based operations and facilities. These results compare to revenues of $165.4 million, net income of $2.8 million, or $0.05 per share, and Adjusted EBITDA of $21.1 million reported in the second quarter of 2025, which included charges and credits of $3.3 million ($2.6 million after-tax or $0.04 per share) associated primarily with the exit of certain U.S. land-based activities.
Oil States’ President and Chief Executive Officer, Cindy B. Taylor, stated:
“In the third quarter of 2025, we continued to focus on our offshore and international exposed operations while managing through headwinds in the United States created by lower commodity prices, falling U.S. activity levels and increasing costs associated with tariffs on imported goods. With our focus on capital discipline and improving investor returns, we generated cash flow from operations of $31 million, increased our Offshore Manufactured Products segment backlog by 10%, and continued to optimize our U.S. land focused operations. During the quarter, we returned $10 million to Oil States’ stakeholders – purchasing $6 million of our convertible senior notes and $4 million of our common stock.”
Business Segment Results
(See Segment Data and Adjusted Segment EBITDA tables below)
Offshore Manufactured Products
Offshore Manufactured Products reported revenues of $108.6 million, operating income of $17.6 million and Adjusted Segment EBITDA of $22.3 million in the third quarter of 2025, compared to revenues of $106.6 million, operating income of $17.0 million and Adjusted Segment EBITDA of $21.1 million reported in the second quarter of 2025. Adjusted Segment EBITDA margin was 21% in the third quarter of 2025, compared to 20% in the second quarter of 2025.
Backlog totaled $399 million as of September 30, 2025, its highest level since June 2015. Third quarter bookings totaled $145 million, yielding a quarterly and year-to-date book-to-bill ratio of 1.3x. Third quarter segment bookings were augmented by long-term, military product contract awards.
Completion and Production Services
Our Completion and Production Services segment reported revenues of $27.5 million, operating income of $0.9 million and Adjusted Segment EBITDA of $8.0 million in the third quarter of 2025, compared to revenues of $29.4 million, operating income of $1.9 million and Adjusted Segment EBITDA of $8.3 million reported in the second quarter of 2025. Adjusted Segment EBITDA margin was 29% in the third quarter of 2025, compared to 28% in the second quarter of 2025.
In 2024, the segment began implementing actions in its U.S. land-based businesses to reduce future costs, which are continuing in 2025. These management actions included: the consolidation, relocation and exit of certain U.S. land-driven service locations; the exit of certain U.S. land-driven service offerings; and reductions in the segment’s workforce in the United States. As a result, during the third and second quarters of 2025, the segment recorded U.S. facility exit and severance charges totaling $2.7 million and $1.8 million, respectively. As a result of our restructuring actions implemented over recent quarters, the segment’s Adjusted EBITDA margin expanded from 13% in the third quarter of 2024 to 29% in the third quarter of 2025.
Downhole Technologies
Downhole Technologies reported revenues of $29.0 million, an operating loss of $4.7 million and an Adjusted Segment EBITDA loss of $0.7 million in the third quarter of 2025, compared to revenues of $29.4 million, an operating loss of $4.0 million and Adjusted Segment EBITDA of $1.2 million in the second quarter of 2025.
Corporate
Corporate operating expenses in the third quarter of 2025 totaled $9.1 million, which included severance charges of $0.3 million.
Interest Expense, Net
Net interest expense totaled $1.8 million in the third quarter of 2025, which included $0.6 million of non-cash amortization of deferred debt issuance costs.
Cash Flows
During the third quarter of 2025, the Company generated $30.7 million of cash flows from operations and $23.2 million of free cash flows (a non-GAAP measure – see Note (E)). Additionally, the Company purchased $6.0 million principal amount of its 4.75% convertible senior notes (the “Convertible Notes”) at a slight discount to par and repurchased $4.1 million of its common stock. Year-to-date stock repurchases total $16.2 million, or 5%, of shares outstanding as of December 31, 2024.
Financial Condition
Cash on-hand totaled $67.1 million at September 30, 2025. No borrowings were outstanding under the Company’s amended asset-based revolving credit facility (the “ABL Facility”) at September 30, 2025. On July 28, 2025, the Company amended its ABL Facility to provide for: additional borrowing availability; lower interest charges; and the retirement of its remaining Convertible Notes at maturity in April 2026 using, in part, availability under the ABL Facility.
Conference Call Information
The call is scheduled for October 31, 2025 at 9:00 a.m. Central Daylight 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) 210-3346 in the United States or by dialing +1 (646) 960-0253 internationally and using the passcode 7534957. A replay of the conference call will be available approximately two 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.
Cautionary Language Concerning 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 impact of changes in tariffs and duties on imported materials and exported finished goods, the level of supply and demand for oil and natural gas, fluctuations in the current and future prices of oil and natural gas, the level of exploration, drilling and completion activity, general global economic conditions, the cyclical nature of the oil and natural gas industry, geopolitical conflicts and tensions, the financial health of our customers, the actions of the Organization of Petroleum Exporting Countries (“OPEC”) and other producing nations (together with OPEC, “OPEC+”) with respect to crude oil production levels and pricing, supply chain disruptions, including as a result of natural disasters, industrial accidents, additional trade restrictions or the adoption of or increase in tariffs, or the threat thereof, the impact of environmental matters, including executive actions and regulatory efforts to adopt environmental or climate change regulations that may result in increased operating costs or reduced oil and natural gas production or demand globally, consolidation of our customers, our ability to access and the cost of capital in the bank and capital markets, our ability to develop new competitive technologies and products, 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, 2024, and the subsequently filed Quarterly Reports on Form 10-Q and 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) (Unaudited) |
|||||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||||||
|
September 30, |
June 30, |
September 30, |
September 30, |
September 30, |
|||||||||||||||
|
Revenues: |
|||||||||||||||||||
|
Products |
$ |
106,492 |
$ |
107,342 |
$ |
100,798 |
$ |
314,385 |
$ |
303,706 |
|||||||||
|
Services |
58,688 |
58,064 |
73,550 |
176,139 |
224,287 |
||||||||||||||
|
165,180 |
165,406 |
174,348 |
490,524 |
527,993 |
|||||||||||||||
|
Costs and expenses: |
|||||||||||||||||||
|
Product costs |
85,561 |
83,936 |
79,167 |
249,826 |
236,807 |
||||||||||||||
|
Service costs |
43,085 |
41,404 |
57,422 |
126,837 |
173,766 |
||||||||||||||
|
Cost of revenues (exclusive of depreciation and amortization expense presented below) |
128,646 |
125,340 |
136,589 |
376,663 |
410,573 |
||||||||||||||
|
Selling, general and administrative expense |
20,756 |
22,981 |
22,754 |
66,267 |
71,623 |
||||||||||||||
|
Depreciation and amortization expense |
12,128 |
11,898 |
13,635 |
36,051 |
42,528 |
||||||||||||||
|
Impairment of goodwill |
— |
— |
— |
— |
10,000 |
||||||||||||||
|
Impairments of intangible assets |
— |
— |
10,787 |
— |
10,787 |
||||||||||||||
|
Impairments of operating lease assets |
— |
1,358 |
2,579 |
1,358 |
2,579 |
||||||||||||||
|
Other operating (income) expense, net |
(1,098 |
) |
(1,448 |
) |
(955 |
) |
(5,479 |
) |
76 |
||||||||||
|
160,432 |
160,129 |
185,389 |
474,860 |
548,166 |
|||||||||||||||
|
Operating income (loss) |
4,748 |
5,277 |
(11,041 |
) |
15,664 |
(20,173 |
) |
||||||||||||
|
Interest expense, net |
(1,773 |
) |
(1,692 |
) |
(1,824 |
) |
(5,043 |
) |
(5,986 |
) |
|||||||||
|
Other income, net |
362 |
636 |
731 |
1,136 |
1,311 |
||||||||||||||
|
Income (loss) before income taxes |
3,337 |
4,221 |
(12,134 |
) |
11,757 |
(24,848 |
) |
||||||||||||
|
Income tax provision |
(1,437 |
) |
(1,410 |
) |
(2,215 |
) |
(3,888 |
) |
(1,574 |
) |
|||||||||
|
Net income (loss) |
$ |
1,900 |
$ |
2,811 |
$ |
(14,349 |
) |
$ |
7,869 |
$ |
(26,422 |
) |
|||||||
|
Net income (loss) per share: |
|||||||||||||||||||
|
Basic |
$ |
0.03 |
$ |
0.05 |
$ |
(0.23 |
) |
$ |
0.13 |
$ |
(0.42 |
) |
|||||||
|
Diluted |
0.03 |
0.05 |
(0.23 |
) |
0.13 |
(0.42 |
) |
||||||||||||
|
Weighted average number of common shares outstanding: |
|||||||||||||||||||
|
Basic |
57,946 |
59,154 |
62,084 |
59,089 |
62,357 |
||||||||||||||
|
Diluted |
58,016 |
59,154 |
62,084 |
59,144 |
62,357 |
||||||||||||||
|
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (In Thousands) |
|||||||
|
September 30, 2025 |
December 31, 2024 |
||||||
|
(Unaudited) |
|||||||
|
ASSETS |
|||||||
|
Current assets: |
|||||||
|
Cash and cash equivalents |
$ |
67,052 |
$ |
65,363 |
|||
|
Accounts receivable, net |
201,617 |
194,336 |
|||||
|
Inventories, net |
222,869 |
214,836 |
|||||
|
Prepaid expenses and other current assets |
19,656 |
23,691 |
|||||
|
Total current assets |
511,194 |
498,226 |
|||||
|
Property, plant, and equipment, net |
273,253 |
266,871 |
|||||
|
Operating lease assets, net |
16,388 |
19,537 |
|||||
|
Goodwill, net |
70,490 |
69,709 |
|||||
|
Other intangible assets, net |
114,664 |
125,862 |
|||||
|
Other noncurrent assets |
26,330 |
24,903 |
|||||
|
Total assets |
$ |
1,012,319 |
$ |
1,005,108 |
|||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||
|
Current liabilities: |
|||||||
|
Current portion of long-term debt |
$ |
103,097 |
$ |
633 |
|||
|
Accounts payable |
58,600 |
57,708 |
|||||
|
Accrued liabilities |
37,852 |
36,861 |
|||||
|
Current operating lease liabilities |
7,344 |
7,284 |
|||||
|
Income taxes payable |
1,066 |
2,818 |
|||||
|
Deferred revenue |
73,200 |
52,399 |
|||||
|
Total current liabilities |
281,159 |
157,703 |
|||||
|
Long-term debt |
1,890 |
124,654 |
|||||
|
Long-term operating lease liabilities |
13,888 |
17,989 |
|||||
|
Deferred income taxes |
6,835 |
5,350 |
|||||
|
Other noncurrent liabilities |
19,581 |
18,758 |
|||||
|
Total liabilities |
323,353 |
324,454 |
|||||
|
Stockholders’ equity: |
|||||||
|
Common stock |
806 |
786 |
|||||
|
Additional paid-in capital |
1,143,685 |
1,137,949 |
|||||
|
Retained earnings |
281,529 |
273,660 |
|||||
|
Accumulated other comprehensive loss |
(66,201 |
) |
(79,532 |
) |
|||
|
Treasury stock |
(670,853 |
) |
(652,209 |
) |
|||
|
Total stockholders’ equity |
688,966 |
680,654 |
|||||
|
Total liabilities and stockholders’ equity |
$ |
1,012,319 |
$ |
1,005,108 |
|||
|
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) (Unaudited) |
|||||||
|
Nine Months Ended September 30, |
|||||||
|
2025 |
2024 |
||||||
|
Cash flows from operating activities: |
|||||||
|
Net income (loss) |
$ |
7,869 |
$ |
(26,422 |
) |
||
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|||||||
|
Depreciation and amortization expense |
36,051 |
42,528 |
|||||
|
Impairment of goodwill |
— |
10,000 |
|||||
|
Impairments of intangible assets |
— |
10,787 |
|||||
|
Impairments of operating lease assets |
1,358 |
2,579 |
|||||
|
Stock-based compensation expense |
5,756 |
6,408 |
|||||
|
Amortization of deferred financing costs |
1,235 |
1,168 |
|||||
|
Deferred income tax provision (benefit) |
852 |
(2,798 |
) |
||||
|
Gains on disposals of assets |
(5,455 |
) |
(2,956 |
) |
|||
|
Net gains on extinguishment of 4.75% convertible senior notes |
(375 |
) |
(515 |
) |
|||
|
Other, net |
(2,192 |
) |
83 |
||||
|
Changes in operating assets and liabilities: |
|||||||
|
Accounts receivable |
(3,417 |
) |
21,173 |
||||
|
Inventories |
(5,287 |
) |
(18,406 |
) |
|||
|
Accounts payable and accrued liabilities |
2,692 |
(17,554 |
) |
||||
|
Deferred revenue |
20,801 |
(2,015 |
) |
||||
|
Other operating assets and liabilities, net |
(4,913 |
) |
3,624 |
||||
|
Net cash flows provided by operating activities |
54,975 |
27,684 |
|||||
|
Cash flows from investing activities: |
|||||||
|
Capital expenditures |
(28,186 |
) |
(23,309 |
) |
|||
|
Proceeds from disposition of property and equipment |
5,416 |
5,132 |
|||||
|
Proceeds from disposition of assets held for sale |
8,409 |
10,279 |
|||||
|
Other, net |
(99 |
) |
(431 |
) |
|||
|
Net cash flows used in investing activities |
(14,460 |
) |
(8,329 |
) |
|||
|
Cash flows from financing activities: |
|||||||
|
Revolving credit facility borrowings |
512 |
22,678 |
|||||
|
Revolving credit facility repayments |
(512 |
) |
(22,678 |
) |
|||
|
Purchases of 4.75% convertible senior notes |
(20,269 |
) |
(10,846 |
) |
|||
|
Other debt and finance lease repayments, net |
(283 |
) |
(481 |
) |
|||
|
Payment of financing costs |
(188 |
) |
(1,119 |
) |
|||
|
Purchases of treasury stock |
(16,186 |
) |
(5,149 |
) |
|||
|
Shares added to treasury stock as a result of net share settlements due to vesting of stock awards |
(2,458 |
) |
(2,596 |
) |
|||
|
Net cash flows used in financing activities |
(39,384 |
) |
(20,191 |
) |
|||
|
Effect of exchange rate changes on cash and cash equivalents |
558 |
(291 |
) |
||||
|
Net change in cash and cash equivalents |
1,689 |
(1,127 |
) |
||||
|
Cash and cash equivalents, beginning of period |
65,363 |
47,111 |
|||||
|
Cash and cash equivalents, end of period |
$ |
67,052 |
$ |
45,984 |
|||
|
Cash paid for: |
|||||||
|
Interest |
$ |
4,033 |
$ |
4,206 |
|||
|
Income taxes, net |
4,648 |
2,695 |
|||||
|
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
SEGMENT DATA (In Thousands) (Unaudited) |
|||||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||||||
|
September 30, 2025 |
June 30, 2025 |
September 30, 2024 |
September 30, 2025 |
September 30, 2024 |
|||||||||||||||
|
Revenues: |
|||||||||||||||||||
|
Offshore Manufactured Products |
|||||||||||||||||||
|
Project-driven: |
|||||||||||||||||||
|
Products |
$ |
67,729 |
$ |
68,653 |
$ |
58,164 |
$ |
195,506 |
$ |
171,053 |
|||||||||
|
Services |
30,172 |
27,907 |
32,754 |
82,503 |
89,011 |
||||||||||||||
|
97,901 |
96,560 |
90,918 |
278,009 |
260,064 |
|||||||||||||||
|
Military and other products |
10,726 |
10,026 |
11,316 |
29,800 |
30,583 |
||||||||||||||
|
Total Offshore Manufactured Products |
108,627 |
106,586 |
102,234 |
307,809 |
290,647 |
||||||||||||||
|
Completion and Production Services |
27,525 |
29,424 |
40,099 |
91,468 |
133,812 |
||||||||||||||
|
Downhole Technologies |
29,028 |
29,396 |
32,015 |
91,247 |
103,534 |
||||||||||||||
|
Total revenues |
$ |
165,180 |
$ |
165,406 |
$ |
174,348 |
$ |
490,524 |
$ |
527,993 |
|||||||||
|
Operating income (loss): |
|||||||||||||||||||
|
Offshore Manufactured Products(1) |
$ |
17,603 |
$ |
16,989 |
$ |
19,310 |
$ |
48,868 |
$ |
44,270 |
|||||||||
|
Completion and Production Services(2) |
948 |
1,877 |
(18,267 |
) |
6,328 |
(19,221 |
) |
||||||||||||
|
Downhole Technologies(3) |
(4,667 |
) |
(3,992 |
) |
(3,653 |
) |
(10,783 |
) |
(16,873 |
) |
|||||||||
|
Corporate(4) |
(9,136 |
) |
(9,597 |
) |
(8,431 |
) |
(28,749 |
) |
(28,349 |
) |
|||||||||
|
Total operating income (loss) |
$ |
4,748 |
$ |
5,277 |
$ |
(11,041 |
) |
$ |
15,664 |
$ |
(20,173 |
) |
|||||||
|
________________ |
|
|
(1) |
Operating income for the three months ended September 30, 2025, June 30, 2025 and September 30, 2024, and nine months ended September 30, 2025 and September 30, 2024 included charges of $0.6 million, $0.3 million, $0.4 million, $0.8 million and $3.4 million associated with the consolidation and relocation of certain manufacturing and service facilities and other cost reduction measures. |
|
(2) |
Operating income (loss) for the three months ended September 30, 2025, June 30, 2025 and September 30, 2024, and nine months ended September 30, 2025 and September 30, 2024, included $2.7 million, $2.2 million, $15.9 million, $5.8 million and $18.5 million, respectively, in costs associated with the consolidation and exit of certain underperforming service offerings and locations. Additionally, during the three and nine months ended September 30, 2024, the segment incurred $1.3 million and $2.7 million, respectively, of costs associated with the defense of certain patents related to proprietary technologies. |
|
(3) |
Operating loss for the three months ended June 30, 2025 and nine months ended September 30, 2025 included $1.2 million in charges associated primarily with the exit of a leased facility. Operating loss for the nine months ended September 30, 2024 included a non-cash goodwill impairment charge of $10.0 million, recognized in connection with the first quarter 2024 realignment of segment components. Additionally, during the three and nine months ended September 30, 2024, the segment incurred $0.6 million in costs associated primarily with the exit of an underperforming location. |
|
(4) |
Operating loss for the three and nine months ended September 30, 2025 included $0.3 million in severance charges. |
|
OIL STATES INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL INFORMATION ADJUSTED EBITDA (A) (In Thousands) (Unaudited) |
|||||||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||||||
|
September 30, |
June 30, |
September 30, |
September 30, |
September 30, |
|||||||||||||||
|
Net income (loss) |
$ |
1,900 |
$ |
2,811 |
$ |
(14,349 |
) |
$ |
7,869 |
$ |
(26,422 |
) |
|||||||
|
Interest expense, net |
1,773 |
1,692 |
1,824 |
5,043 |
5,986 |
||||||||||||||
|
Income tax provision |
1,437 |
1,410 |
2,215 |
3,888 |
1,574 |
||||||||||||||
|
Depreciation and amortization expense |
12,128 |
11,898 |
13,635 |
36,051 |
42,528 |
||||||||||||||
|
Impairment of goodwill |
— |
— |
— |
— |
10,000 |
||||||||||||||
|
Impairments of intangible assets |
— |
— |
10,787 |
— |
10,787 |
||||||||||||||
|
Impairments of operating lease assets |
— |
1,358 |
2,579 |
1,358 |
2,579 |
||||||||||||||
|
Facility consolidation/closure and other charges |
3,560 |
2,301 |
4,840 |
6,791 |
11,775 |
||||||||||||||
|
Losses (gains) on extinguishment of 4.75% convertible senior notes |
6 |
(381 |
) |
— |
(375 |
) |
(515 |
) |
|||||||||||
|
Adjusted EBITDA |
$ |
20,804 |
$ |
21,089 |
$ |
21,531 |
$ |
60,625 |
$ |
58,292 |
|||||||||
|
________________ |
|
|
(A) |
The term Adjusted EBITDA consists of net income (loss) plus net interest expense, taxes, depreciation and amortization expense, impairments of goodwill, intangible and operating lease assets, and facility consolidation/closure and other charges, less losses (gains) on extinguishment of Convertible Notes. Adjusted EBITDA is not a measure of financial performance under generally accepted accounting principles (“GAAP”) and should not be considered in isolation from or as a substitute for net income (loss) or cash flow measures prepared in accordance with GAAP or as a measure of profitability or liquidity. Additionally, Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included Adjusted EBITDA as a supplemental disclosure because its management believes that Adjusted EBITDA provides 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 Adjusted 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 Adjusted EBITDA to net income (loss), which is the most directly comparable measure of financial performance calculated under GAAP. |
Contacts
Company Contact:
Lloyd A. Hajdik
Oil States International, Inc.
Executive Vice President, Chief Financial Officer and Treasurer
(713) 652-0582
