Civeo Corp [CVEO] Filings

10-Q 1 cveo-20220630.htm 10-Q cveo-20220630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

			For the transition period from _________________________ to _________________________

Commission file number: 001-36246

Civeo Corporation

(Exact name of registrant as specified in its charter)


British Columbia, Canada			98-1253716
(State or other jurisdiction of			(I.R.S. Employer
incorporation or organization)			Identification No.)

Three Allen Center, 333 Clay Street, Suite 4980,			77002
Houston, Texas			(Zip Code)
(Address of principal executive offices)

(713) 510-2400

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Shares, no par value	CVEO	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.


Yes			☒			No			☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).


Yes			☒			No			☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "accelerated filer," "large accelerated filer," "smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

☐

Accelerated Filer

☒

Emerging Growth Company

☐

Non-Accelerated Filer

☐

Smaller Reporting Company

☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).


Yes			☐			No			☒

The Registrant had 14,188,012 common shares outstanding as of July 25, 2022.

CIVEO CORPORATION

INDEX


			Page No.
Part I -- FINANCIAL INFORMATION

Item 1. Financial Statements:

Consolidated Financial Statements
Unaudited Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2022 and 2021			4
Unaudited Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2022 and 2021			5
Consolidated Balance Sheets – as of June 30, 2022 (unaudited) and December 31, 2021			6
Unaudited Consolidated Statements of Changes in Shareholders’ Equity for the Three and Six Months Ended June 30, 2022 and 2021			7
Unaudited Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021			8
Notes to Unaudited Consolidated Financial Statements			9

Cautionary Statement Regarding Forward-Looking Statements			19

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			19

Item 3. Quantitative and Qualitative Disclosures About Market Risk			36

Item 4. Controls and Procedures			36


Part II -- OTHER INFORMATION

Item 1. Legal Proceedings			37

Item 1A. Risk Factors			37

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			37

Item 6. Exhibits			38

(a) Index of Exhibits			38

Signature Page			39

PART I -- FINANCIAL INFORMATION

ITEM 1. Financial Statements

CIVEO CORPORATION

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, Except Per Share Amounts)


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Revenues:
Service and other	$	177,254	$	147,784	$	336,824	$	269,780
Rental	7,035		4,540		12,295		7,604
Product	665		1,852		1,513		2,222
	184,954		154,176		350,632		279,606
Costs and expenses:
Service and other costs	124,318		103,449		245,168		199,911
Rental costs	5,414		3,661		9,806		6,631
Product costs	321		892		922		1,270
Selling, general and administrative expenses	17,682		14,703		32,895		28,884
Depreciation and amortization expense	23,083		21,377		43,210		42,646
Impairment expense	—		7,935		—		7,935
Other operating (income) expense	(106)		30		152		101
	170,712		152,047		332,153		287,378
Operating income (loss)	14,242		2,129		18,479		(7,772)

Interest expense	(2,608)		(3,401)		(5,076)		(6,763)

Interest income	2		2		2		2
Other income	415		788		2,111		5,702
Income (loss) before income taxes	12,051		(482)		15,516		(8,831)
Income tax (expense) benefit	(1,821)		492		(3,378)		(584)
Net income (loss)	10,230		10		12,138		(9,415)
Less: Net income (loss) attributable to noncontrolling interest	662		(3)		1,160		56
Net income (loss) attributable to Civeo Corporation	9,568		13		10,978		(9,471)
Less: Dividends attributable to Class A preferred shares	490		480		977		958
Net income (loss) attributable to Civeo common shareholders	$	9,078	$	(467)	$	10,001	$	(10,429)


Per Share Data (see Note 7)
Basic net income (loss) per share attributable to Civeo Corporation common shareholders	$	0.55	$	(0.03)	$	0.60	$	(0.73)

Diluted net income (loss) per share attributable to Civeo Corporation common shareholders	$	0.54	$	(0.03)	$	0.60	$	(0.73)

Weighted average number of common shares outstanding:
Basic	14,148		14,278		14,122		14,244
Diluted	14,275		14,278		14,271		14,244

The accompanying notes are an integral part of these financial statements.

CIVEO CORPORATION

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In Thousands)


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021

Net income (loss)	$	10,230	$	10	$	12,138	$	(9,415)

Other comprehensive loss, net of taxes:
Foreign currency translation adjustment, net of zero taxes	(20,024)		(1,573)		(12,012)		(3,200)
Total other comprehensive loss, net of taxes	(20,024)		(1,573)		(12,012)		(3,200)

Comprehensive income (loss)	(9,794)		(1,563)		126		(12,615)
Less: Comprehensive income (loss) attributable to noncontrolling interest	568		(11)		1,106		38
Comprehensive loss attributable to Civeo Corporation	$	(10,362)	$	(1,552)	$	(980)	$	(12,653)

The accompanying notes are an integral part of these financial statements.

CIVEO CORPORATION

CONSOLIDATED BALANCE SHEETS

(In Thousands, Excluding Share Amounts)


	June 30, 2022		December 31, 2021
	(Unaudited)
ASSETS

Current assets:
Cash and cash equivalents	$	4,782	$	6,282
Accounts receivable, net	134,845		114,859
Inventories	7,382		6,468
Prepaid expenses	5,003		6,876
Other current assets	6,282		10,946
Assets held for sale	11,430		11,762
Total current assets	169,724		157,193

Property, plant and equipment, net	349,094		389,996
Goodwill	7,798		8,204
Other intangible assets, net	88,936		93,642
Operating lease right-of-use assets	16,295		18,327
Other noncurrent assets	5,550		5,372
Total assets	$	637,397	$	672,734

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	45,360	$	49,321
Accrued liabilities	28,289		33,564
Income taxes	74		171
Current portion of long-term debt	29,880		30,576
Deferred revenue	7,256		18,479
Other current liabilities	8,494		4,807
Total current liabilities	119,353		136,918

Long-term debt, less current maturities	123,018		142,602
Deferred income taxes	3,999		896
Operating lease liabilities	13,438		15,429
Other noncurrent liabilities	14,069		13,778
Total liabilities	273,877		309,623

Commitments and contingencies (Note 10)

Shareholders’ Equity:
Preferred shares (Class A Series 1, no par value; 50,000,000 shares authorized, 9,042 shares issued and outstanding, respectively; aggregate liquidation preference of $98,415,509 and $97,438,687 as of June 30, 2022 and December 31, 2021)	62,918		61,941
Common shares (no par value; 46,000,000 shares authorized, 14,554,687 shares and 14,431,819 shares issued, respectively, and 14,188,012 shares and 14,111,221 shares outstanding, respectively)	—		—
Additional paid-in capital	1,584,416		1,582,442
Accumulated deficit	(903,492)		(912,951)
Common shares held in treasury at cost, 366,675 and 320,598 shares, respectively	(9,063)		(8,050)
Accumulated other comprehensive loss	(373,841)		(361,883)
Total Civeo Corporation shareholders’ equity	360,938		361,499
Noncontrolling interest	2,582		1,612
Total shareholders’ equity	363,520		363,111
Total liabilities and shareholders’ equity	$	637,397	$	672,734

The accompanying notes are an integral part of these financial statements.

CIVEO CORPORATION

UNAUDITED CONSOLIDATED STATEMENTS OF

CHANGES IN SHAREHOLDERS’ EQUITY

(In Thousands)


	Attributable to Civeo
	Preferred Shares		Common Shares
	Amount		Par Value		Additional Paid-in Capital		Accumulated Deficit		Treasury Shares		Accumulated Other Comprehensive Income (Loss)		Noncontrolling Interest		Total Shareholders’ Equity
Balance, March 31, 2021	$	60,494	$	—	$	1,579,342	$	(917,689)	$	(8,050)	$	(350,606)	$	648	$	364,139
Net income (loss)	—		—		—		13		—		—		(3)		10
Currency translation adjustment	—		—		—		—		—		(1,565)		(8)		(1,573)
Dividends paid	—		—		—		—		—		—		(42)		(42)
Dividends attributable to Class A preferred shares	480		—		—		(480)		—		—		—		—
Share-based compensation	—		—		871		—		—		—		—		871
Balance, June 30, 2021	$	60,974	$	—	$	1,580,213	$	(918,156)	$	(8,050)	$	(352,171)	$	595	$	363,405

Balance, March 31, 2022	$	62,428	$	—	$	1,583,474	$	(912,037)	$	(9,063)	$	(353,911)	$	2,080	$	372,971
Net income (loss)	—		—		—		9,568		—		—		662		10,230
Currency translation adjustment	—		—		—		—		—		(19,930)		(94)		(20,024)
Dividends paid	—		—		—		—		—		—		(66)		(66)
Dividends attributable to Class A preferred shares	490		—		—		(490)		—		—		—		—
Common shares repurchased	—		—		—		(533)		—		—		—		(533)
Share-based compensation	—		—		942		—		—		—		—		942
Balance, June 30, 2022	$	62,918	$	—	$	1,584,416	$	(903,492)	$	(9,063)	$	(373,841)	$	2,582	$	363,520

Balance, December 31, 2020	$	60,016	$	—	$	1,578,315	$	(907,727)	$	(6,930)	$	(348,989)	$	672	$	375,357
Net income (loss)	—		—		—		(9,471)		—		—		56		(9,415)
Currency translation adjustment	—		—		—		—		—		(3,182)		(18)		(3,200)
Dividends paid	—		—		—		—		—		—		(115)		(115)
Dividends attributable to Class A preferred shares	958		—		—		(958)		—		—		—		—
Share-based compensation	—		—		1,898		—		(1,120)		—		—		778
Balance, June 30, 2021	$	60,974	$	—	$	1,580,213	$	(918,156)	$	(8,050)	$	(352,171)	$	595	$	363,405

Balance, December 31, 2021	$	61,941	$	—	$	1,582,442	$	(912,951)	$	(8,050)	$	(361,883)	$	1,612	$	363,111
Net income	—		—		—		10,978		—		—		1,160		12,138
Currency translation adjustment	—		—		—		—		—		(11,958)		(54)		(12,012)
Dividends paid	—		—		—		—		—		—		(136)		(136)
Dividends attributable to Class A preferred shares	977		—		—		(977)		—		—		—		—
Common shares repurchased	—		—		—		(542)		—		—		—		(542)
Share-based compensation	—		—		1,974		—		(1,013)		—				961
Balance, June 30, 2022	$	62,918	$	—	$	1,584,416	$	(903,492)	$	(9,063)	$	(373,841)	$	2,582	$	363,520


	Preferred Shares	Common Shares (in thousands)
Balance, December 31, 2021	9,042	14,111
Share-based compensation	—	100
Common shares repurchased	—	(23)
Balance, June 30, 2022	9,042	14,188

The accompanying notes are an integral part of these financial statements.

CIVEO CORPORATION

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)


	Six Months Ended June 30,
	2022		2021
Cash flows from operating activities:
Net income (loss)	$	12,138	$	(9,415)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	43,210		42,646
Impairment charges	—		7,935

Deferred income tax expense	3,256		416
Non-cash compensation charge	1,974		1,898
Gains on disposals of assets	(1,895)		(1,941)
Provision (benefit) for credit losses, net of recoveries	(24)		147
Other, net	1,544		1,483
Changes in operating assets and liabilities:
Accounts receivable	(23,119)		(24,617)
Inventories	(1,180)		(830)
Accounts payable and accrued liabilities	(6,713)		(563)
Taxes payable	(99)		21
Other current and noncurrent assets and liabilities, net	(5,461)		12,170
Net cash flows provided by operating activities	23,631		29,350

Cash flows from investing activities:
Capital expenditures	(8,647)		(6,530)

Proceeds from disposition of property, plant and equipment	3,302		7,012
Other, net	190		—
Net cash flows provided by (used in) investing activities	(5,155)		482

Cash flows from financing activities:
Revolving credit borrowings	155,712		117,976
Revolving credit repayments	(158,288)		(130,080)
Term loan repayments	(15,763)		(17,874)

Repurchases of common shares	(542)		—
Taxes paid on vested shares	(1,013)		(1,120)
Net cash flows used in financing activities	(19,894)		(31,098)

Effect of exchange rate changes on cash	(82)		(475)
Net change in cash and cash equivalents	(1,500)		(1,741)
Cash and cash equivalents, beginning of period	6,282		6,155

Cash and cash equivalents, end of period	$	4,782	$	4,414

Non-cash financing activities:
Preferred dividends paid-in-kind	$	977	$	958

The accompanying notes are an integral part of these financial statements.

CIVEO CORPORATION

NOTES TO UNAUDITED CONSOLIDATED

FINANCIAL STATEMENTS

1.DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Description of the Business

We provide hospitality services to the natural resources industry in Canada, Australia and the U.S. Our full suite of hospitality services for our guests includes lodging, catering and food service, housekeeping and maintenance at accommodation facilities that we or our customers own. In many cases, we provide services that support the day-to-day operations, such as laundry, facility management and maintenance, water and wastewater treatment, power generation, communication systems, security and logistics. We also offer development activities for workforce accommodation facilities, including site selection, permitting, engineering and design, manufacturing management and site construction, along with providing hospitality services once the facility is constructed. We primarily operate in some of the world’s most active oil, metallurgical (met) coal, liquefied natural gas (LNG) and iron ore producing regions, and our customers include major and independent oil companies, mining companies, engineering companies and oilfield and mining service companies. We operate in three principal reportable business segments – Canada, Australia and the U.S.

Basis of Presentation

Unless otherwise stated or the context otherwise indicates: (i) all references in these consolidated financial statements to “Civeo,” “us,” “our” or “we” refer to Civeo Corporation and its consolidated subsidiaries; and (ii) all references in this report to “dollars” or “$” are to U.S. dollars.

The accompanying unaudited consolidated financial statements of Civeo have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC) pertaining to interim financial information. Certain information in footnote disclosures normally included in financial statements prepared in accordance with Generally Accepted Accounting Principles (GAAP) has been condensed or omitted pursuant to those rules and regulations. The unaudited financial statements included in this report reflect all the adjustments, consisting of normal recurring adjustments, which Civeo considers necessary for a fair presentation of the results of operations for the interim periods covered and for the financial condition of Civeo at the date of the interim balance sheet. Results for the interim periods are not necessarily indicative of results for the full year.

The preparation of consolidated financial statements in conformity with GAAP requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. If the underlying estimates and assumptions upon which the financial statements are based change in future periods, actual amounts may differ from those included in the accompanying consolidated financial statements.

The financial statements included in this report should be read in conjunction with our audited financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2021.

CIVEO CORPORATION

NOTES TO UNAUDITED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

2.REVENUE

The following table disaggregates our revenue by our three reportable segments: Canada, Australia and the U.S., and major categories for the periods indicated (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Canada
Accommodation revenues	$	79,431	$	69,759	$	146,625	$	116,289
Mobile facility rental revenues	24,058		8,666		48,076		19,165
Food service and other services revenues	5,534		4,856		10,274		9,712

Total Canada revenues	109,023		83,281		204,975		145,166

Australia
Accommodation revenues	$	39,052	$	37,780	$	76,651	$	71,455
Food service and other services revenues	28,768		26,239		54,698		52,201
Total Australia revenues	67,820		64,019		131,349		123,656

U.S.
Accommodation revenues	$	791	$	1,605	$	1,254	$	2,377
Mobile facility rental revenues	7,051		3,761		12,317		6,828
Manufacturing revenues	254		1,499		699		1,562
Food service and other services revenues	15		11		38		17
Total U.S. revenues	8,111		6,876		14,308		10,784

Total revenues	$	184,954	$	154,176	$	350,632	$	279,606

Our payment terms vary by the type and location of our customer and the products or services offered. The time between invoicing and when our performance obligations are satisfied is not significant. Payment terms are generally within 30 days and in most cases do not extend beyond 60 days. We do not have significant financing components or significant payment terms.

As of June 30, 2022, for contracts that are greater than one year, the table below discloses the estimated revenues related to performance obligations that are unsatisfied (or partially unsatisfied) and when we expect to recognize the revenue. The table only includes revenue expected to be recognized from contracts where the quantity of service is certain (in thousands):


	For the years ending December 31,
	2022		2023		2024		Thereafter		Total
Revenue expected to be recognized as of June 30, 2022	$	75,076	$	47,206	$	12,605	$	9,964	$	144,851

We applied the practical expedient and do not disclose consideration for remaining performance obligations with an original expected duration of one year or less. In addition, we do not estimate revenues expected to be recognized related to unsatisfied performance obligations for contracts without minimum room commitments. The table above represents only a portion of our expected future consolidated revenues and it is not necessarily indicative of the expected trend in total revenues.

3.IMPAIRMENT CHARGES

Quarter ended June 30, 2021. During the second quarter of 2021, we recorded impairment expense of $7.9 million related to various undeveloped land positions and related permitting costs in Australia. At June 30, 2021, we identified an impairment trigger related to certain of these properties due to the cancellation of a significant thermal coal project in Australia and our negative expectations related to other possible Australian thermal coal projects becoming viable in the near term. Accordingly, the assets were written down to their estimated fair value of $2.4 million.

4.FAIR VALUE MEASUREMENTS

Our financial instruments consist of cash and cash equivalents, receivables, payables and debt instruments. We believe that the carrying values of these instruments on the accompanying consolidated balance sheets approximate their fair values.

CIVEO CORPORATION

NOTES TO UNAUDITED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

As of June 30, 2022 and December 31, 2021, we believe the carrying value of our floating-rate debt outstanding under our term loans and revolving credit facilities approximates fair value because the terms include short-term interest rates and exclude penalties for prepayment. We estimated the fair value of our floating-rate term loan and revolving credit facilities using significant other observable inputs, representative of a Level 2 fair value measurement, including terms and credit spreads for these loans. In addition, the estimated fair value of our assets held for sale is based upon Level 2 fair value measurements, which include appraisals and previous negotiations with third parties.

During the second quarter of 2021, we wrote down certain long-lived assets to fair value. Our estimate of the fair value of undeveloped land positions in Australia that were impaired was based on appraisals from third parties.

See Note 3 – Impairment Charges for further information.

5.DETAILS OF SELECTED BALANCE SHEET ACCOUNTS

Additional information regarding selected balance sheet accounts at June 30, 2022 and December 31, 2021 is presented below (in thousands):


	June 30, 2022		December 31, 2021
Accounts receivable, net:
Trade	$	80,295	$	75,740
Unbilled revenue	53,455		38,508
Other	1,415		972
Total accounts receivable	135,165		115,220
Allowance for credit losses	(320)		(361)
Total accounts receivable, net	$	134,845	$	114,859


	June 30, 2022		December 31, 2021
Inventories:
Finished goods and purchased products	$	5,611	$	5,346
Work in process	365		25
Raw materials	1,406		1,097
Total inventories	$	7,382	$	6,468


	Estimated Useful Life (in years)			June 30, 2022		December 31, 2021
Property, plant and equipment, net:
Land				$	28,664	$	30,556
Accommodations assets	3	—	15	1,592,357		1,657,577
Buildings and leasehold improvements	7	—	20	23,307		24,335
Machinery and equipment	4	—	15	14,804		14,983
Office furniture and equipment	3	—	7	63,407		63,228
Vehicles	3	—	5	14,605		14,578
Construction in progress				5,671		2,063
Total property, plant and equipment				1,742,815		1,807,320
Accumulated depreciation				(1,393,721)		(1,417,324)
Total property, plant and equipment, net				$	349,094	$	389,996

CIVEO CORPORATION

NOTES TO UNAUDITED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)


	June 30, 2022		December 31, 2021
Accrued liabilities:
Accrued compensation	$	23,345	$	28,877
Accrued taxes, other than income taxes	2,998		2,944

Other	1,946		1,743
Total accrued liabilities	$	28,289	$	33,564

6.ASSETS HELD FOR SALE

As of June 30, 2022, assets held for sale included certain assets in our U.S. business segment, an undeveloped land holding and a village in our Australia business segment and an unused corporate office space acquired in the Noralta acquisition in our Canada business segment. As of December 31, 2021, assets held for sale included certain assets in our U.S. business segment and undeveloped land holdings in our Australia business segment. These assets were recorded at the estimated fair value less costs to sell, which exceeded their carry values.

The following table summarizes the carrying amount as of June 30, 2022 and December 31, 2021 of the assets classified as held for sale (in thousands):


	June 30, 2022		December 31, 2021
Assets held for sale:
Property, plant and equipment, net	$	11,430	$	11,762
Total assets held for sale	$	11,430	$	11,762

7.EARNINGS PER SHARE

We calculate basic and diluted earnings per share by applying the two-class method because we have participating securities in the form of Class A preferred shares. Participating securities are allocated a proportional share of net income determined by dividing total weighted average participating securities by the sum of total weighted average common shares and participating securities. In calculating diluted earnings per share, we utilize the most dilutive result of the two class method and if-converted methods. We also apply the treasury stock method with respect to certain share-based awards in the calculation of diluted earnings per share, if dilutive.

CIVEO CORPORATION

NOTES TO UNAUDITED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

The calculation of earnings per share attributable to Civeo common shareholders is presented below for the periods indicated (in thousands, except per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Numerator:
Net income (loss) attributable to Civeo common shareholders	$	9,078	$	(467)	$	10,001	$	(10,429)
Less: income allocated to participating securities	(1,356)		—		(1,497)		—
Basic net income (loss) attributable to Civeo Corporation common shareholders	$	7,722	$	(467)	$	8,504	$	(10,429)
Add: undistributed income attributable to participating securities	1,356		—		1,497		—
Less: undistributed income reallocated to participating securities	(1,346)		—		(1,483)		—
Diluted net income (loss) attributable to Civeo Corporation common shareholders	$	7,732	$	(467)	$	8,518	$	(10,429)

Denominator:
Weighted average shares outstanding - basic	14,148		14,278		14,122		14,244
Dilutive shares - share-based awards	127		—		149		—
Weighted average shares outstanding - diluted	14,275		14,278		14,271		14,244

Basic net income (loss) per share attributable to Civeo Corporation common shareholders (1)	$	0.55	$	(0.03)	$	0.60	$	(0.73)

Diluted net income (loss) per share attributable to Civeo Corporation common shareholders (1)	$	0.54	$	(0.03)	$	0.60	$	(0.73)

(1)Computations may reflect rounding adjustments.

For the three and six months ended June 30, 2022, we excluded a portion of our share-based awards, which totaled less than 0.1 million shares, from the computation of diluted earnings per share because their effect was anti-dilutive. When an entity has a net loss from continuing operations, it is prohibited from including potential common shares in the computation of diluted per share amounts. As a result of the net loss for the three and six months ended June 30, 2021, we excluded from the computation of diluted loss per share 0.1 million and 0.2 million share based awards, respectively, since the effect would have been anti-dilutive. Additionally, for the three and six months ended June 30, 2022 and 2021, the impact of converting the Preferred Shares into 2.5 million and 2.4 million common shares, respectively, using the if-converted method would have been anti-dilutive.

CIVEO CORPORATION

NOTES TO UNAUDITED CONSOLIDATED

FINANCIAL STATEMENTS

(Continued)

8.DEBT

As of June 30, 2022 and December 31, 2021, long-term debt consisted of the following (in thousands):


	June 30, 2022		December 31, 2021
Canadian term loan; weighted average interest rate of 4.1% for the six month period ended June 30, 2022	$	46,560	$	63,104

U.S. revolving credit facility; weighted average interest rate of 5.7% for the six month period ended June 30, 2022	—		—

Canadian revolving credit facility; weighted average interest rate of 4.4% for the six month period ended June 30, 2022	93,586		111,300

Australian revolving credit facility; weighted average interest rate of 3.3% for the six month period ended June 30, 2022	14,492		726
	154,638		175,130
Less: Unamortized debt issuance costs	1,740		1,952
Total debt	152,898		173,178
Less: Current portion of long-term debt, including unamortized debt issuance costs, net	29,880