Revenue during the quarter dropped 3.80 percent to $91.43 million from $95.04 million in the previous year period. Gross margin for the quarter expanded 193 basis points over the previous year period to 32.55 percent. Operating margin for the quarter stood at negative 19.39 percent as compared to a negative 27.57 percent for the previous year period.

Operating loss for the quarter was $17.73 million, compared with an operating loss of $26.20 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $15.23 million compared with $16.76 million in the prior year period. At the same time, adjusted EBITDA margin contracted 97 basis points in the quarter to 16.66 percent from 17.63 percent in the last year period.

“Our performance during the first quarter was consistent with our strategic objectives to generate free cash flow, reduce debt, win new business and deliver best-in-class services to our customers,” said Bradley J. Dodson, President and Chief Executive Officer. “First quarter revenues were above our expectations due to better occupancy in Canada and Australia. First quarter earnings were modestly below our expectations, due to higher-than-expected stock-based compensation expense as a result of the year-to-date increase in our stock price and higher-than-expected labor costs in Canada. We are encouraged by the broadening stabilization in our core end markets, highlighted by our 15-month contract renewal at McClelland Lake Lodge in Canada and improving performance in our Australian and U.S. segments.”

For the second-quarter, Civeo Corp forecasts revenue to be in the range of $82 million to $87 million. Civeo Corp forecasts revenue to be in the range of $337 million to $353 million for fiscal year 2017.

The company has spent $3.30 million cash to meet investing activities during the quarter as against cash outgo of $3.46 million in the last year period. It has incurred capital expenditure of $3.30 million on net basis during the quarter, up 4.52 percent or $0.14 million from year ago period.

Cash flow from financing activities was $18.88 million for the quarter as against cash outgo of $13.06 million in the last year period.

Cash and cash equivalents stood at $27.14 million as on Mar. 31, 2017, up 814.29 percent or $24.17 million from $2.97 million on Mar. 31, 2016.

Working capital increases sharply
Civeo Corporation has recorded an increase in the working capital over the last year. It stood at $50.61 million as at Mar. 31, 2017, up 93 percent or $24.39 million from $26.22 million on Mar. 31, 2016. Current ratio was at 1.93 as on Mar. 31, 2017, up from 1.40 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 26 days for the quarter from 31 days for the last year period. Days sales outstanding went down to 57 days for the quarter compared with 60 days for the same period last year.

Days inventory outstanding has decreased to 3 days for the quarter compared with 7 days for the previous year period. At the same time, days payable outstanding went down to 33 days for the quarter from 37 for the same period last year.