Previous Statements by OIS
» Oil States International's CEO Discusses 1Q 2012 Results - Earnings Call Transcript
» Oil States' CEO Present at Credit Suisse Energy Summit Conference (Transcript)
» Oil States International's CEO Discusses Q4 2011 Results - Earnings Call Transcript
» Oil States International CEO Discusses Q3 2011 Results - Earnings Call Transcript
I will now turn the call over to Cindy.Cindy Taylor Thank you, Patricia, and thanks to all of you for joining our call this morning. During the second quarter of 2012 Oil States generated strong earnings of $2.01 per diluted share on $1.1 billion in revenues and $111 million of net income. I'm happy to report that our second quarter results increased year-over-year for all of our business segments and either met or exceeded our prior guidance for the second quarter 2012. Occupancy levels at our major oilsands lodges in Australian villages remained very high during the quarter and provided strong RevPAR for our Accommodation segment. Growth in our Accommodations business continues to be supported by organic room count expansion in all of our major accommodations markets. In this segment, customer contracts provide us with longer term revenue visibility. In our Offshore product segment, backlog and margins improved to new record levels with backlogs totaling $562 million at June 30, 2012. We continue to see strong bidding and quoting activity particularly for our subsea pipeline and floating production facility products on a worldwide basis. Our Well Site Services and Tubular Services businesses performed well during the second quarter despite regional volatility created by softening commodity prices. Activity and demand remained strong for our high and completion services particularly in the Bakken, Eagle Ford, and Permian Basin markets. Partially offsetting activity declines in the Marcellus, Barnett and Haynesville region. Our Tubular Services segment reported a new quarterly record for tonnage shipped which was up 12% sequentially. Customer demand for OCTG remains robust and we continue to see strong activity particularly in the Permian Basin and offshore Gulf of Mexico. At this time, Bradley will take you through more details of our consolidated results and financial position, and then I will conclude our prepared remarks with a discussion of each of our segments and will give you our thoughts as to the current markets outlook.
Bradley DodsonThank you, Cindy. During the second quarter of 2012 we reported operating income of $169 million on revenues of $1.1 billion. Our net income for the second quarter of 2012 totaled $111 million or $2.01 per diluted share, which included a pre-tax gain of $2.5 million or $0.03 per diluted share after tax which related to insurance proceeds received during the second quarter in excess of net book value for a land drilling rate that was blocked in a fire in the first quarter of 2012. The comparable second quarter 2011 results were $115 million of operating income on revenues of $820 million. Second quarter 2011 net income totaled $74 million or $1.34 per diluted share. The year-over-year increases in profitability resulted from organic growth initiatives. In the Accommodation segment and the Well Site Services segment increased sales of deepwater capital equipment, higher US land drilling and completion activity, and a resurgence in exploration and production activity in the U.S. Gulf of Mexico. During the second quarter we reported cash flow from operations of $184 million which included $11 million of cash flow generated from working capital reductions. During the quarter, we spent $99 million in capital expenditures primarily related to ongoing expansion of our accommodations business, the addition of rental equipment deployed to service the active US shale plays, and for facility and equipment expansion in our offshore product segment. Our net debt at the end of the second quarter totaled $1 billion and our debt cap ratio approximated 34%. As of June 30, 2012, the company had $767 million of combined availability under our credit facilities along with a $114 million in cash. In May 2012, we announced a redemption of our 2-3/8% contingent convertible senior notes. Subsequent to the end of the second quarter 2012, the outstanding principal amount of $135 million was paid in cash funded by amounts available under our existing US credit facility with remaining conversion value paid in shares of oil based common stock. Additional information regarding the settlement of the convertible notes is detailed in our Form 10-Q that we plan to file later today. Read the rest of this transcript for free on seekingalpha.com