Oil States International, Inc. (OIS) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $10.63 million, or $ 0.21 a share in the quarter, against a net profit of $1.12 million, or $0.02 a share in the last year period. Revenue during the quarter dropped 27.53 percent to $169.93 million from $234.47 million in the previous year period. Gross margin for the quarter contracted 377 basis points over the previous year period to 25.98 percent. Operating margin for the quarter stood at negative 9.65 percent as compared to a positive 2.51 percent for the previous year period.
Operating loss for the quarter was $16.39 million, compared with an operating income of $5.88 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $13.67 million compared with $42.49 million in the prior year period. At the same time, adjusted EBITDA margin contracted 1008 basis points in the quarter to 8.04 percent from 18.12 percent in the last year period.
Oil States president and chief executive officer, Cindy B. Taylor, stated, "We concluded the fourth quarter 2016 with results that reflect the benefit of existing backlog and sound project execution in our offshore products segment coupled with the beginnings of a recovery in U.S. onshore markets, which benefitted our well site services segment. Our quarterly book-to-bill ratio was 0.98x in our offshore products segment suggesting that a floor in backlog should emerge in early 2017. Nonetheless, we entered 2017 with backlog that is down 41% from the beginning of 2016, creating revenue headwinds for 2017. Commodity prices and U.S. land rig count trends are favorable for our well site services segment going into 2017."
Operating cash flow drops significantly
Oil States International has generated cash of $149.26 million from operating activities during the year, down 41.72 percent or $106.86 million, when compared with the last year. The company has spent $29.29 million cash to meet investing activities during the year as against cash outgo of $147.20 million in the last year. It has incurred net capital expenditure of $28.16 million on net basis during the year, down 74.88 percent or $83.93 million from year ago.
The company has spent $84.88 million cash to carry out financing activities during the year as against cash outgo of $124.72 million in the last year period.
Cash and cash equivalents stood at $68.80 million as on Dec. 31, 2016, up 91.25 percent or $32.83 million from $35.97 million on Dec. 31, 2015.
Debt comes down significantly
Oil States International has recorded a decline in total debt over the last one year. It stood at $45.93 million as on Dec. 31, 2016, down 63.67 percent or $80.49 million from $126.42 million on Dec. 31, 2015.
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