Civeo Corp (CVEO) Q2 2024 Earnings Call Highlights: Strong Australian Growth Amid Canadian ...

GuruFocus News
4 min read

In This Article:

  • Total Revenue: $188.7 million for Q2 2024.

  • Net Income: $8.2 million, or $0.56 per diluted share for Q2 2024.

  • Adjusted EBITDA: $31.3 million for Q2 2024.

  • Operating Cash Flow: $32.4 million for Q2 2024.

  • Free Cash Flow: $30.9 million for Q2 2024.

  • Australian Segment Revenue: $108.6 million, up from $82.5 million in Q2 2023.

  • Australian Adjusted EBITDA: $21.6 million, up 10% from $19.6 million in Q2 2023.

  • Canadian Segment Revenue: $79.5 million, down from $95.5 million in Q2 2023.

  • Canadian Adjusted EBITDA: $17.2 million, down from $19.8 million in Q2 2023.

  • Capital Expenditures: $5.3 million for Q2 2024.

  • Net Debt: $40.1 million as of June 30, 2024.

  • Net Leverage Ratio: 0.3 times as of June 30, 2024.

  • Total Liquidity: Approximately $159 million as of June 30, 2024.

  • Share Repurchases: Approximately 274,000 shares for $6.6 million in Q2 2024.

  • Dividend: $0.25 per share, payable on September 16, 2024.

Release Date: July 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Civeo Corp (NYSE:CVEO) reported an increase in second-quarter 2024 revenues and free cash flow year-over-year.

  • The Australian segment showed strong performance with a 10% increase in adjusted EBITDA compared to the second quarter of 2023.

  • Civeo Corp (NYSE:CVEO) returned $10.3 million of capital to shareholders through dividends and share repurchases in the second quarter of 2024.

  • The company maintained its full-year 2024 revenue and adjusted EBITDA guidance, indicating confidence in its financial outlook.

  • Civeo Corp (NYSE:CVEO) experienced growth in its Australian Integrated Services business due to recent competitive wins and expansion of existing customer relationships.

Negative Points

  • The Canadian segment experienced a year-over-year decrease in revenues and adjusted EBITDA due to the wind-down of LNG-related mobile camp activity.

  • The daily room rate for the Canadian segment decreased from $100 to $96 year-over-year, impacting revenue.

  • Civeo Corp (NYSE:CVEO) faced a $6.9 million decrease in adjusted EBITDA due to the expected headwind from Canadian LNG mobile camp activity.

  • The company anticipates more modest results in the latter half of 2024 for Canada due to the shift of customer turnaround activity.

  • Wildfires in Western Canada posed a potential risk, although no material financial impact was anticipated at the time of the call.

Q & A Highlights

Q: Can you discuss the growth prospects in Australia for the latter half of 2024 and into 2025? A: Bradley Dodson, President and CEO, mentioned that occupancy in Australian villages is expected to remain consistent through the third quarter, with a slight downtick in the fourth quarter due to holidays. Integrated Services is performing well, and the focus is on winning additional work to reach the AUD500 million revenue goal by 2027. There are opportunities to add capacity in the Bowen Basin, contingent on customer commitments and permitting.

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