falsedesktopCVEO2020-09-30000159058420000133{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "British Columbia Canada\t98-1253716\n(State or other jurisdiction of\t(I.R.S. Employer\nincorporation or organization)\tIdentification No.)\nThree Allen Center 333 Clay Street Suite 4980\t77002\nHouston Texas\t(Zip Code)\n(Address of principal executive offices)\t\n", "q10k_tbl_1": "Large Accelerated Filer\t☐\tAccelerated Filer\t☒\tEmerging Growth Company\t☐\nNon-Accelerated Filer\t☐\tSmaller Reporting Company\t☒\t\t\n", "q10k_tbl_2": "\tPage No.\nPart I -- FINANCIAL INFORMATION\t\nItem 1. Financial Statements:\t\nConsolidated Financial Statements\t\nUnaudited Consolidated Statements of Operations for the Three and Nine Months Ended September 30 2020 and 2019\t4\nUnaudited Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30 2020 and 2019\t5\nConsolidated Balance Sheets - as of September 30 2020 (unaudited) and December 31 2019\t6\nUnaudited Consolidated Statements of Changes in Shareholders' Equity for the Three and Nine Months Ended September 30 2020 and 2019\t7\nUnaudited Consolidated Statements of Cash Flows for the Nine Months Ended September 30 2020 and 2019\t8\nNotes to Unaudited Consolidated Financial Statements\t9\nCautionary Statement Regarding Forward-Looking Statements\t20\nItem 2. Management's Discussion and Analysis of Financial Condition and Results of Operations\t20\nItem 3. Quantitative and Qualitative Disclosures About Market Risk\t38\nItem 4. Controls and Procedures\t38\nPart II -- OTHER INFORMATION\t\nItem 1. Legal Proceedings\t39\nItem 1A. Risk Factors\t39\nItem 6. Exhibits\t40\n(a) Index of Exhibits\t40\nSignature Page\t42\n", "q10k_tbl_3": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nRevenues:\t\t\t\t\nService and other\t136523\t140349\t375928\t353147\nRental\t3217\t6942\t13261\t21057\nProduct\t3117\t872\t7162\t4662\n\t142857\t148163\t396351\t378866\nCosts and expenses:\t\t\t\t\nService and other costs\t92147\t93642\t267051\t243945\nRental costs\t3131\t5072\t11559\t16579\nProduct costs\t2156\t766\t5270\t3826\nSelling general and administrative expenses\t13462\t14334\t38889\t42960\nDepreciation and amortization expense\t24820\t31196\t72527\t92974\nImpairment expense\t0\t0\t144120\t5546\nOther operating expense\t51\t277\t755\t109\n\t135767\t145287\t540171\t405939\nOperating income (loss)\t7090\t2876\t(143820)\t(27073)\nInterest expense\t(3646)\t(7315)\t(13095)\t(20670)\nLoss on extinguishment of debt\t(383)\t0\t(383)\t0\nInterest income\t0\t17\t20\t66\nOther income\t4542\t2849\t17209\t6882\nIncome (loss) before income taxes\t7603\t(1573)\t(140069)\t(40795)\nIncome tax (expense) benefit\t(180)\t6629\t8509\t13963\nNet income (loss)\t7423\t5056\t(131560)\t(26832)\nLess: Net income attributable to noncontrolling interest\t434\t60\t914\t60\nNet income (loss) attributable to Civeo Corporation\t6989\t4996\t(132474)\t(26892)\nLess: Dividends attributable to Class A preferred shares\t472\t464\t1411\t1384\nNet income (loss) attributable to Civeo common shareholders\t6517\t4532\t(133885)\t(28276)\nPer Share Data (see Note 8)\t\t\t\t\nBasic net income (loss) per share attributable to Civeo Corporation common shareholders\t0.03\t0.02\t(0.79)\t(0.17)\nDiluted net income (loss) per share attributable to Civeo Corporation common shareholders\t0.03\t0.02\t(0.79)\t(0.17)\nWeighted average number of common shares outstanding:\t\t\t\t\nBasic\t169924\t167640\t169420\t166842\nDiluted\t170544\t168282\t169420\t166842\n", "q10k_tbl_4": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nNet income (loss)\t7423\t5056\t(131560)\t(26832)\nOther comprehensive income (loss) net of taxes:\t\t\t\t\nForeign currency translation adjustment net of zero taxes\t11131\t(12096)\t(8025)\t(5633)\nTotal other comprehensive income (loss) net of taxes\t11131\t(12096)\t(8025)\t(5633)\nComprehensive income (loss)\t18554\t(7040)\t(139585)\t(32465)\nLess: Comprehensive income attributable to noncontrolling interest\t462\t60\t928\t60\nComprehensive income (loss) attributable to Civeo Corporation\t18092\t(7100)\t(140513)\t(32525)\n", "q10k_tbl_5": "\tSeptember 30 2020\tDecember 31 2019\n\t(Unaudited)\t\nASSETS\t\t\nCurrent assets:\t\t\nCash and cash equivalents\t6938\t3331\nAccounts receivable net\t92754\t99493\nInventories\t5775\t5877\nPrepaid expenses\t9369\t7247\nOther current assets\t7737\t7904\nAssets held for sale\t0\t7589\nTotal current assets\t122573\t131441\nProperty plant and equipment net\t481394\t590309\nGoodwill\t8086\t110173\nOther intangible assets net\t98907\t111837\nOperating lease right-of-use assets\t20426\t24876\nOther noncurrent assets\t1550\t1276\nTotal assets\t732936\t969912\nLIABILITIES AND SHAREHOLDERS' EQUITY\t\t\nCurrent liabilities:\t\t\nAccounts payable\t37116\t36971\nAccrued liabilities\t22229\t21755\nIncome taxes\t379\t328\nCurrent portion of long-term debt\t32978\t35080\nDeferred revenue\t7801\t7165\nOther current liabilities\t6353\t8741\nTotal current liabilities\t106856\t110040\nLong-term debt less current maturities\t236876\t321792\nDeferred income taxes\t0\t9452\nOperating lease liabilities\t18035\t21231\nOther noncurrent liabilities\t17557\t16592\nTotal liabilities\t379324\t479107\nCommitments and contingencies (Note 11)\t\t\nShareholders' Equity:\t\t\nPreferred shares (Class A Series 1 no par value; 50000000 shares authorized 9042 shares issued and outstanding respectively; aggregate liquidation preference of $95039 and $93627 as of September 30 2020 and December 31 2019)\t59540\t58129\nCommon shares (no par value; 550000000 shares authorized 173746532 shares and 171656039 shares issued respectively and 170582021 shares and 169556403 shares outstanding respectively)\t0\t0\nAdditional paid-in capital\t1577053\t1572249\nAccumulated deficit\t(905475)\t(771590)\nCommon shares held in treasury at cost 3164511 and 2099636 shares respectively\t(6930)\t(5472)\nAccumulated other comprehensive loss\t(371212)\t(363173)\nTotal Civeo Corporation shareholders' equity\t352976\t490143\nNoncontrolling interest\t636\t662\nTotal shareholders' equity\t353612\t490805\nTotal liabilities and shareholders' equity\t732936\t969912\n", "q10k_tbl_6": "\tAttributable to Civeo\t\t\t\t\t\t\t\n\tPreferred Shares\tCommon Shares\t\t\t\t\t\t\n\tAmount\tPar Value\tAdditional Paid-in Capital\tAccumulated Deficit\tTreasury Shares\tAccumulated Other Comprehensive Income (Loss)\tNoncontrolling Interest\tTotal Shareholders' Equity\nBalance June 30 2019\t57200\t0\t1567162\t(744058)\t(5472)\t(364786)\t0\t510046\nNet income (loss)\t0\t0\t0\t4996\t0\t0\t60\t5056\nCurrency translation adjustment\t0\t0\t0\t0\t0\t(12096)\t0\t(12096)\nDividends paid\t0\t0\t0\t0\t0\t0\t(60)\t(60)\nDividends attributable to Class A preferred shares\t464\t0\t0\t(464)\t0\t0\t0\t0\nShare-based compensation\t0\t0\t2572\t0\t0\t0\t0\t2572\nBalance September 30 2019\t57664\t0\t1569734\t(739526)\t(5472)\t(376882)\t0\t505518\nBalance June 30 2020\t59068\t0\t1575788\t(911992)\t(6930)\t(382315)\t624\t334243\nNet income (loss)\t0\t0\t0\t6989\t0\t0\t434\t7423\nCurrency translation adjustment\t0\t0\t0\t0\t0\t11103\t28\t11131\nDividends paid\t0\t0\t0\t0\t0\t0\t(450)\t(450)\nDividends attributable to Class A preferred shares\t472\t0\t0\t(472)\t0\t0\t0\t0\nShare-based compensation\t0\t0\t1265\t0\t0\t0\t0\t1265\nBalance September 30 2020\t59540\t0\t1577053\t(905475)\t(6930)\t(371212)\t636\t353612\nBalance December 31 2018\t56280\t0\t1562133\t(710551)\t(1189)\t(371249)\t0\t535424\nNet income (loss)\t0\t0\t0\t(26892)\t0\t0\t60\t(26832)\nCurrency translation adjustment\t0\t0\t0\t0\t0\t(5633)\t0\t(5633)\nDividends paid\t0\t0\t0\t0\t0\t0\t(60)\t(60)\nCumulative effect of implementation of ASU 2014-09\t0\t0\t0\t(699)\t0\t0\t0\t(699)\nDividends attributable to Class A preferred shares\t1384\t0\t0\t(1384)\t0\t0\t0\t0\nShare-based compensation\t0\t0\t7601\t0\t(4283)\t0\t0\t3318\nBalance September 30 2019\t57664\t0\t1569734\t(739526)\t(5472)\t(376882)\t0\t505518\nBalance December 31 2019\t58129\t0\t1572249\t(771590)\t(5472)\t(363173)\t662\t490805\nNet income (loss)\t0\t0\t0\t(132474)\t0\t0\t914\t(131560)\nCurrency translation adjustment\t0\t0\t0\t0\t0\t(8039)\t14\t(8025)\nDividends paid\t0\t0\t0\t0\t0\t0\t(954)\t(954)\nDividends attributable to Class A preferred shares\t1411\t0\t0\t(1411)\t0\t0\t0\t0\nShare-based compensation\t0\t0\t4804\t0\t(1458)\t0\t0\t3346\nBalance September 30 2020\t59540\t0\t1577053\t(905475)\t(6930)\t(371212)\t636\t353612\n", "q10k_tbl_7": "\tPreferred Shares (in thousands)\tCommon Shares (in thousands)\nBalance December 31 2019\t9042\t169556\nShare-based compensation\t0\t1026\nBalance September 30 2020\t9042\t170582\n", "q10k_tbl_8": "\tNine Months Ended September 30\t\n\t2020\t2019\nCash flows from operating activities:\t\t\nNet loss\t(131560)\t(26832)\nAdjustments to reconcile net loss to net cash provided by operating activities:\t\t\nDepreciation and amortization\t72527\t92974\nImpairment charges\t144120\t5546\nLoss on extinguishment of debt\t383\t0\nDeferred income tax benefit\t(8941)\t(14732)\nNon-cash compensation charge\t4804\t7601\nGains on disposals of assets\t(2581)\t(4095)\nProvision (benefit) for loss on receivables net of recoveries\t45\t(39)\nOther net\t(2730)\t2530\nChanges in operating assets and liabilities:\t\t\nAccounts receivable\t5355\t(30227)\nInventories\t194\t(1175)\nAccounts payable and accrued liabilities\t1247\t4958\nTaxes payable\t51\t345\nOther current and noncurrent assets and liabilities net\t(2239)\t(3328)\nNet cash flows provided by operating activities\t80675\t33526\nCash flows from investing activities:\t\t\nCapital expenditures\t(6244)\t(25517)\nPayments related to acquisitions net of cash acquired\t0\t(16439)\nProceeds from disposition of property plant and equipment\t3336\t5482\nOther net\t4619\t1762\nNet cash flows provided by (used in) investing activities\t1711\t(34712)\nCash flows from financing activities:\t\t\nRevolving credit borrowings\t324611\t340494\nRevolving credit repayments\t(369122)\t(310946)\nTerm loan repayments\t(31092)\t(26085)\nDebt issuance costs\t(2583)\t(1950)\nTaxes paid on vested shares\t(1458)\t(4283)\nNet cash flows used in financing activities\t(79644)\t(2770)\nEffect of exchange rate changes on cash\t865\t(344)\nNet change in cash and cash equivalents\t3607\t(4300)\nCash and cash equivalents beginning of period\t3331\t12372\nCash and cash equivalents end of period\t6938\t8072\nNon-cash financing activities:\t\t\nPreferred dividends paid-in-kind\t1411\t1384\n", "q10k_tbl_9": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nCanada\t\t\t\t\nAccommodation revenues\t49798\t79939\t156068\t203774\nMobile facility rental revenues\t13135\t3048\t21715\t5648\nFood service and other services revenues\t8852\t8084\t26336\t25507\nManufacturing revenues\t0\t0\t0\t1014\nTotal Canada revenues\t71785\t91071\t204119\t235943\nAustralia\t\t\t\t\nAccommodation revenues\t39470\t33056\t106988\t92473\nFood service and other services revenues\t25215\t14687\t63881\t14687\nTotal Australia revenues\t64685\t47743\t170869\t107160\nU.S.\t\t\t\t\nAccommodation revenues\t394\t1655\t1892\t11354\nMobile facility rental revenues\t3218\t6952\t13275\t21175\nManufacturing revenues\t2772\t714\t6159\t3116\nFood service and other services revenues\t3\t28\t37\t118\nTotal U.S. revenues\t6387\t9349\t21363\t35763\nTotal revenues\t142857\t148163\t396351\t378866\n", "q10k_tbl_10": "\tFor the years ending December 31\t\t\t\t\n\t2020\t2021\t2022\tThereafter\tTotal\nRevenue expected to be recognized as of September 30 2020\t33002\t61031\t29120\t11820\t134973\n", "q10k_tbl_11": "\tSeptember 30 2020\tDecember 31 2019\nAccounts receivable net:\t\t\nTrade\t68848\t76370\nUnbilled revenue\t21819\t23041\nOther (1)\t2357\t335\nTotal accounts receivable\t93024\t99746\nAllowance for credit losses\t(270)\t(253)\nTotal accounts receivable net\t92754\t99493\n", "q10k_tbl_12": "\tSeptember 30 2020\tDecember 31 2019\nInventories:\t\t\nFinished goods and purchased products\t4538\t3982\nWork in process\t18\t813\nRaw materials\t1219\t1082\nTotal inventories\t5775\t5877\n", "q10k_tbl_13": "\tEstimated Useful Life (in years)\t\t\tSeptember 30 2020\tDecember 31 2019\nProperty plant and equipment net:\t\t\t\t\t\nLand\t\t\t\t47049\t43147\nAccommodations assets\t3\t0\t15\t1651178\t1696425\nBuildings and leasehold improvements\t7\t0\t20\t33714\t26108\nMachinery and equipment\t4\t0\t15\t12110\t12060\nOffice furniture and equipment\t3\t0\t7\t59432\t58005\nVehicles\t3\t0\t5\t14711\t14604\nConstruction in progress\t\t\t\t5551\t4286\nTotal property plant and equipment\t\t\t\t1823745\t1854635\nAccumulated depreciation\t\t\t\t(1342351)\t(1264326)\nTotal property plant and equipment net\t\t\t\t481394\t590309\n", "q10k_tbl_14": "\tSeptember 30 2020\tDecember 31 2019\nAccrued liabilities:\t\t\nAccrued compensation\t17350\t17169\nAccrued taxes other than income taxes\t3113\t3152\nOther\t1766\t1434\nTotal accrued liabilities\t22229\t21755\n", "q10k_tbl_15": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n\t2020\t2019\t2020\t2019\nNumerator:\t\t\t\t\nNet income (loss) attributable to Civeo common shareholders\t6517\t4532\t(133885)\t(28276)\nLess: income allocated to participating securities\t(944)\t(653)\t0\t0\nBasic net income (loss) attributable to Civeo Corporation common shareholders\t5573\t3879\t(133885)\t(28276)\nAdd: undistributed income attributable to participating securities\t944\t653\t0\t0\nLess: undistributed income reallocated to participating securities\t(942)\t(651)\t0\t0\nDiluted net income (loss) attributable to Civeo Corporation common shareholders\t5575\t3881\t(133885)\t(28276)\nDenominator:\t\t\t\t\nWeighted average shares outstanding - basic\t169924\t167640\t169420\t166842\nDilutive shares - share-based awards\t620\t642\t0\t0\nWeighted average shares outstanding - diluted\t170544\t168282\t169420\t166842\nBasic net income (loss) per share attributable to Civeo Corporation common shareholders (1)\t0.03\t0.02\t(0.79)\t(0.17)\nDiluted net income (loss) per share attributable to Civeo Corporation common shareholders (1)\t0.03\t0.02\t(0.79)\t(0.17)\n", "q10k_tbl_16": "\tSeptember 30 2020\tDecember 31 2019\nCanadian term loan which matures on May 30 2023; 3.125% of aggregate principal repayable per quarter; weighted average interest rate of 4.0% for the nine month period ended September 30 2020\t187371\t224963\nU.S. revolving credit facility which matures on May 30 2023 weighted average interest rate of 5.6% for the nine month period ended September 30 2020\t0\t0\nCanadian revolving credit facility which matures on May 30 2023 weighted average interest rate of 4.2% for the nine month period ended September 30 2020\t55478\t134117\nAustralian revolving credit facility which matures on May 30 2023 weighted average interest rate of 3.6% for the nine month period ended September 30 2020\t29697\t0\n\t272546\t359080\nLess: Unamortized debt issuance costs\t2692\t2208\nTotal debt\t269854\t356872\nLess: Current portion of long-term debt including unamortized debt issuance costs net\t32978\t35080\nLong-term debt less current maturities\t236876\t321792\n", "q10k_tbl_17": "Period Ended\tMaximum Leverage Ratio\t\nSeptember 30 2020\t3.75 :\t1.00\nDecember 31 2020 and thereafter\t3.50 :\t1.00\n", "q10k_tbl_18": "\tCanada\tAustralia\tU.S.\tTotal\nGoodwill net of $19.9 million accumulated impairment loss as of December 31 2019\t102238\t7935\t0\t110173\nForeign currency translation\t(8632)\t151\t0\t(8481)\nGoodwill impairment (1)\t(93606)\t0\t0\t(93606)\nGoodwill net of $113.5 million accumulated impairment loss as of September 30 2020\t0\t8086\t0\t8086\n", "q10k_tbl_19": "\tTotal revenues\tDepreciation and amortization\tOperating income (loss)\tCapital expenditures\tTotal assets\nThree months ended September 30 2020\t\t\t\t\t\nCanada\t71785\t13266\t1007\t362\t691634\nAustralia\t64685\t10739\t9890\t1825\t266591\nU.S.\t6387\t747\t(3197)\t84\t27017\nCorporate and eliminations\t0\t68\t(610)\t126\t(252306)\nTotal\t142857\t24820\t7090\t2397\t732936\nThree months ended September 30 2019\t\t\t\t\t\nCanada\t91071\t18219\t2919\t2851\t843818\nAustralia\t47743\t9576\t4662\t675\t279386\nU.S.\t9349\t1611\t(2167)\t576\t51376\nCorporate and eliminations\t0\t1790\t(2538)\t207\t(163757)\nTotal\t148163\t31196\t2876\t4309\t1010823\nNine months ended September 30 2020\t\t\t\t\t\nCanada\t204119\t39812\t(142343)\t1203\t691634\nAustralia\t170869\t29767\t24245\t3036\t266591\nUnited States\t21363\t2525\t(19954)\t1468\t27017\nCorporate and eliminations\t0\t423\t(5768)\t537\t(252306)\nTotal\t396351\t72527\t(143820)\t6244\t732936\nNine months ended September 30 2019\t\t\t\t\t\nCanada\t235943\t50574\t(14437)\t19294\t843818\nAustralia\t107160\t29401\t(1302)\t2508\t279386\nUnited States\t35763\t7713\t(4484)\t2870\t51376\nCorporate and eliminations\t0\t5286\t(6850)\t845\t(163757)\nTotal\t378866\t92974\t(27073)\t25517\t1010823\n", "q10k_tbl_20": "\tAverage Price (1)\t\t\nQuarter ended\tWTI Crude (per bbl)\tWCS Crude (per bbl)\tHard Coking Coal (Met Coal) (per tonne)\nFourth Quarter through 10/23/2020\t40.13\t30.33\t125.16\n9/30/2020\t40.90\t31.15\t113.30\n6/30/2020\t27.95\t19.73\t120.27\n3/31/2020\t45.38\t27.92\t156.17\n12/30/2019\t56.85\t37.94\t141.39\n9/30/2019\t56.40\t43.88\t160.25\n6/30/2019\t59.89\t47.39\t204.78\n3/31/2019\t54.87\t44.49\t203.30\n12/31/2018\t59.32\t25.66\t223.02\n9/30/2018\t69.61\t41.58\t188.46\n6/30/2018\t67.97\t49.93\t189.41\n3/31/2018\t62.89\t37.09\t228.82\n12/31/2017\t55.28\t38.65\t202.33\n9/30/2017\t48.16\t37.72\t187.89\n", "q10k_tbl_21": "\tThree Months Ended September 30\t\t\t\tNine Months Ended September 30\t\t\t\n\t2020\t2019\tChange\tPercentage\t2020\t2019\tChange\tPercentage\nAverage Canadian dollar to U.S. dollar\t0.751\t0.757\t(0.01)\t(0.8)%\t0.739\t0.752\t($0.01)\t(1.7)%\nAverage Australian dollar to U.S. dollar\t0.716\t0.686\t0.03\t4.3%\t0.677\t0.699\t($0.02)\t(3.1)%\n", "q10k_tbl_22": "\tAs of\t\t\t\n\tSeptember 30 2020\tDecember 31 2019\tChange\tPercentage\nCanadian dollar to U.S. dollar\t0.750\t0.770\t(0.02)\t(2.6)%\nAustralian dollar to U.S. dollar\t0.716\t0.702\t0.01\t1.9%\n", "q10k_tbl_23": "\tThree Months Ended September 30\t\t\n\t2020\t2019\tChange\n\t($ in thousands)\t\t\nRevenues\t\t\t\nCanada\t71785\t91071\t(19286)\nAustralia\t64685\t47743\t16942\nU.S. and other\t6387\t9349\t(2962)\nTotal revenues\t142857\t148163\t(5306)\nCosts and expenses\t\t\t\nCost of sales and services\t\t\t\nCanada\t51393\t62277\t(10884)\nAustralia\t38529\t28664\t9865\nU.S. and other\t7512\t8539\t(1027)\nTotal cost of sales and services\t97434\t99480\t(2046)\nSelling general and administrative expenses\t13462\t14334\t(872)\nDepreciation and amortization expense\t24820\t31196\t(6376)\nImpairment expense\t0\t0\t0\nOther operating income\t51\t277\t(226)\nTotal costs and expenses\t135767\t145287\t(9520)\nOperating income\t7090\t2876\t4214\nInterest expense and income net\t(4029)\t(7298)\t3269\nOther income\t4542\t2849\t1693\nIncome (loss) before income taxes\t7603\t(1573)\t9176\nIncome tax (expense) benefit\t(180)\t6629\t(6809)\nNet income\t7423\t5056\t2367\nLess: Net income attributable to noncontrolling interest\t434\t60\t374\nNet income attributable to Civeo Corporation\t6989\t4996\t1993\nLess: Dividends attributable to preferred shares\t472\t464\t8\nNet income attributable to Civeo common shareholders\t6517\t4532\t1985\n", "q10k_tbl_24": "\tThree Months Ended September 30\t\t\n\t2020\t2019\tChange\nRevenues ($ in thousands)\t\t\t\nAccommodation revenue (1)\t49798\t79939\t(30141)\nMobile facility rental revenue (2)\t13135\t3048\t10087\nFood service and other services revenue (3)\t8852\t8084\t768\nManufacturing revenue (4)\t0\t0\t0\nTotal revenues\t71785\t91071\t(19286)\nCost of sales and services ($ in thousands)\t\t\t\nAccommodation cost\t32490\t49377\t(16887)\nMobile facility rental cost\t8557\t2059\t6498\nFood service and other services cost\t7595\t7319\t276\nManufacturing cost\t164\t150\t14\nIndirect other costs\t2587\t3372\t(785)\nTotal cost of sales and services\t51393\t62277\t(10884)\nGross margin as a % of revenues\t28.4%\t31.6%\t(3.2)%\nAverage daily rate for lodges (5)\t96\t91\t5\nTotal billed rooms for lodges (6)\t508449\t875891\t(367442)\nAverage Canadian dollar to U.S. dollar\t0.751\t0.757\t(0.01)\n", "q10k_tbl_25": "\tThree Months Ended September 30\t\t\n\t2020\t2019\tChange\nRevenues ($ in thousands)\t\t\t\nAccommodation revenue (1)\t39470\t33056\t6414\nFood service and other services revenue (2)\t25215\t14687\t10528\nTotal revenues\t64685\t47743\t16942\nCost of sales ($ in thousands)\t\t\t\nAccommodation cost\t16401\t14954\t1447\nFood service and other services cost\t21161\t12807\t8354\nIndirect other cost\t967\t903\t64\nTotal cost of sales and services\t38529\t28664\t9865\nGross margin as a % of revenues\t40.4%\t40.0%\t0.5%\nAverage daily rate for villages (3)\t77\t73\t4\nTotal billed rooms for villages (4)\t513587\t454859\t58728\nAustralian dollar to U.S. dollar\t0.716\t0.686\t0.03\n", "q10k_tbl_26": "\tThree Months Ended September 30\t\t\n\t2020\t2019\tChange\nRevenues ($ in thousands)\t6387\t9349\t(2962)\nCost of sales ($ in thousands)\t7512\t8539\t(1027)\nGross margin as a % of revenues\t(17.6)%\t8.7%\t(26.3)%\n", "q10k_tbl_27": "\tNine Months Ended September 30\t\t\n\t2020\t2019\tChange\n\t($ in thousands)\t\t\nRevenues\t\t\t\nCanada\t204119\t235943\t(31824)\nAustralia\t170869\t107160\t63709\nU.S. and other\t21363\t35763\t(14400)\nTotal revenues\t396351\t378866\t17485\nCosts and expenses\t\t\t\nCost of sales and services\t\t\t\nCanada\t158130\t176200\t(18070)\nAustralia\t102995\t59718\t43277\nU.S. and other\t22755\t28432\t(5677)\nTotal cost of sales and services\t283880\t264350\t19530\nSelling general and administrative expenses\t38889\t42960\t(4071)\nDepreciation and amortization expense\t72527\t92974\t(20447)\nImpairment expense\t144120\t5546\t138574\nOther operating expense (income)\t755\t109\t646\nTotal costs and expenses\t540171\t405939\t134232\nOperating loss\t(143820)\t(27073)\t(116747)\nInterest expense and income net\t(13458)\t(20604)\t7146\nOther income\t17209\t6882\t10327\nLoss before income taxes\t(140069)\t(40795)\t(99274)\nIncome tax benefit\t8509\t13963\t(5454)\nNet loss\t(131560)\t(26832)\t(104728)\nLess: Net income attributable to noncontrolling interest\t914\t60\t854\nNet loss attributable to Civeo Corporation\t(132474)\t(26892)\t(105582)\nLess: Dividends attributable to preferred shares\t1411\t1384\t27\nNet loss attributable to Civeo common shareholders\t(133885)\t(28276)\t(105609)\n", "q10k_tbl_28": "\tNine Months Ended September 30\t\t\n\t2020\t2019\tChange\nRevenues ($ in thousands)\t\t\t\nAccommodation revenue (1)\t156068\t203774\t(47706)\nMobile facility rental revenue (2)\t21715\t5648\t16067\nFood service and other services revenue (3)\t26336\t25507\t829\nManufacturing revenue (4)\t0\t1014\t(1014)\nTotal revenues\t204119\t235943\t(31824)\nCost of sales and services ($ in thousands)\t\t\t\nAccommodation cost\t109143\t137140\t(27997)\nMobile facility rental cost\t17099\t4735\t12364\nFood service and other services cost\t23773\t23620\t153\nManufacturing cost\t461\t1007\t(546)\nIndirect other cost\t7654\t9698\t(2044)\nTotal cost of sales and services\t158130\t176200\t(18070)\nGross margin as a % of revenues\t22.5%\t25.3%\t(2.8)%\nAverage daily rate for lodges (5)\t95\t91\t4\nTotal billed rooms for lodges (6)\t1626668\t2241510\t(614842)\nAverage Canadian dollar to U.S. dollar\t0.739\t0.752\t(0.01)\n", "q10k_tbl_29": "\tNine Months Ended September 30\t\t\n\t2020\t2019\tChange\nRevenues ($ in thousands)\t\t\t\nAccommodation revenue (1)\t106988\t92473\t14515\nFood service and other services revenue (2)\t63881\t14687\t49194\nTotal revenues\t170869\t107160\t63709\nCost of sales ($ in thousands)\t\t\t\nAccommodation cost\t46665\t44816\t1849\nFood service and other services cost\t53627\t12807\t40820\nIndirect other cost\t2703\t2095\t608\nTotal cost of sales and services\t102995\t59718\t43277\nGross margin as a % of revenues\t39.7%\t44.3%\t(4.5)%\nAverage daily rate for villages (3)\t72\t74\t(2)\nTotal billed rooms for villages (4)\t1487819\t1253856\t233963\nAustralian dollar to U.S. dollar\t0.677\t0.699\t(0.02)\n", "q10k_tbl_30": "\tNine Months Ended September 30\t\t\n\t2020\t2019\tChange\nRevenues ($ in thousands)\t21363\t35763\t(14400)\nCost of sales ($ in thousands)\t22755\t28432\t(5677)\nGross margin as a % of revenues\t(6.5)%\t20.5%\t(27.0)%\n", "q10k_tbl_31": "\tSeptember 30 2020\tDecember 31 2019\nLender commitments (1)\t167300\t263500\nReductions in availability (2)\t0\t(6591)\nBorrowings against revolving credit capacity\t(85175)\t(134117)\nOutstanding letters of credit\t(3433)\t(2031)\nUnused availability\t78692\t120761\nCash and cash equivalents\t6938\t3331\nTotal available liquidity\t85630\t124092\n", "q10k_tbl_32": "Balance at December 31 2019\t359080\nBorrowings under revolving credit facilities\t324611\nRepayments of borrowings under revolving credit facilities\t(369122)\nRepayments of term loans\t(31092)\nTranslation\t(10931)\nBalance at September 30 2020\t272546\n", "q10k_tbl_33": "Period Ended\tMaximum Leverage Ratio\t\nSeptember 30 2020\t3.75 :\t1.00\nDecember 31 2020 and thereafter\t3.50 :\t1.00\n", "q10k_tbl_34": "Exhibit No.\t\tDescription\n10.1\t0\tThird Amendment to Amended and Restated Syndicated Facility Agreement dated as of September 3 2020 among Civeo Corporation and certain of its subsidiaries as borrowers the guarantors party thereto the lenders named therein Royal Bank of Canada as Administrative Agent and the other agents party thereto (incorporated herein by reference to Exhibit 10.1 to the Current Report on Form 8-K (File No. 001-36246) filed on September 8 2020).\n10.2 †*\t0\tFirst Amendment to Executive Change of Control Severance Agreement between Civeo Corporation and Allan Schoening effective as of July 20 2020.\n31.1*\t0\tCertification of Chief Executive Officer of Civeo Corporation pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934.\n31.2*\t0\tCertification of Chief Financial Officer of Civeo Corporation pursuant to Rules 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934.\n32.1**\t0\tCertification of Chief Executive Officer of Civeo Corporation pursuant to Rules 13a-14(b) or 15d-14(b) under the Securities Exchange Act of 1934.\n32.2**\t0\tCertification of Chief Financial Officer of Civeo Corporation pursuant to Rules 13a-14(b) or 15d-14(b) under the Securities Exchange Act of 1934.\n101.INS*\t0\tInline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document\n101.SCH*\t0\tInline XBRL Taxonomy Extension Schema Document\n101.CAL*\t0\tInline XBRL Taxonomy Extension Calculation Linkbase Document\n101.DEF*\t0\tInline Taxonomy Extension Definition Linkbase Document\n101.LAB*\t0\tInline XBRL Taxonomy Extension Label Linkbase Document\n101.PRE*\t0\tInline XBRL Taxonomy Extension Presentation Linkbase Document\n104\t0\tCover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)\n"}{"bs": "q10k_tbl_5", "is": "q10k_tbl_3", "cf": "q10k_tbl_8"}None
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2020
OR
☐
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 170,582,021 common shares outstanding as of October 23, 2020.
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 Nine Months Ended September 30, 2020 and 2019
Less: Net income attributable to noncontrolling interest
434
60
914
60
Net income (loss) attributable to Civeo Corporation
6,989
4,996
(132,474)
(26,892)
Less: Dividends attributable to Class A preferred shares
472
464
1,411
1,384
Net income (loss) attributable to Civeo common shareholders
$
6,517
$
4,532
$
(133,885)
$
(28,276)
Per Share Data (see Note 8)
Basic net income (loss) per share attributable to Civeo Corporation common shareholders
$
0.03
$
0.02
$
(0.79)
$
(0.17)
Diluted net income (loss) per share attributable to Civeo Corporation common shareholders
$
0.03
$
0.02
$
(0.79)
$
(0.17)
Weighted average number of common shares outstanding:
Basic
169,924
167,640
169,420
166,842
Diluted
170,544
168,282
169,420
166,842
The accompanying notes are an integral part of these financial statements.
4
CIVEO CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In Thousands)
Three Months Ended September 30,
Nine Months Ended September 30,
2020
2019
2020
2019
Net income (loss)
$
7,423
$
5,056
$
(131,560)
$
(26,832)
Other comprehensive income (loss), net of taxes:
Foreign currency translation adjustment, net of zero taxes
11,131
(12,096)
(8,025)
(5,633)
Total other comprehensive income (loss), net of taxes
11,131
(12,096)
(8,025)
(5,633)
Comprehensive income (loss)
18,554
(7,040)
(139,585)
(32,465)
Less: Comprehensive income attributable to noncontrolling interest
462
60
928
60
Comprehensive income (loss) attributable to Civeo Corporation
$
18,092
$
(7,100)
$
(140,513)
$
(32,525)
The accompanying notes are an integral part of these financial statements.
5
CIVEO CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Thousands, Excluding Share Amounts)
September 30, 2020
December 31, 2019
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
6,938
$
3,331
Accounts receivable, net
92,754
99,493
Inventories
5,775
5,877
Prepaid expenses
9,369
7,247
Other current assets
7,737
7,904
Assets held for sale
—
7,589
Total current assets
122,573
131,441
Property, plant and equipment, net
481,394
590,309
Goodwill
8,086
110,173
Other intangible assets, net
98,907
111,837
Operating lease right-of-use assets
20,426
24,876
Other noncurrent assets
1,550
1,276
Total assets
$
732,936
$
969,912
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
37,116
$
36,971
Accrued liabilities
22,229
21,755
Income taxes
379
328
Current portion of long-term debt
32,978
35,080
Deferred revenue
7,801
7,165
Other current liabilities
6,353
8,741
Total current liabilities
106,856
110,040
Long-term debt, less current maturities
236,876
321,792
Deferred income taxes
—
9,452
Operating lease liabilities
18,035
21,231
Other noncurrent liabilities
17,557
16,592
Total liabilities
379,324
479,107
Commitments and contingencies (Note 11)
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 $95,039 and $93,627 as of September 30, 2020 and December 31, 2019)
59,540
58,129
Common shares (no par value; 550,000,000 shares authorized, 173,746,532 shares and 171,656,039 shares issued, respectively, and 170,582,021 shares and 169,556,403 shares outstanding, respectively)
—
—
Additional paid-in capital
1,577,053
1,572,249
Accumulated deficit
(905,475)
(771,590)
Common shares held in treasury at cost, 3,164,511 and 2,099,636 shares, respectively
(6,930)
(5,472)
Accumulated other comprehensive loss
(371,212)
(363,173)
Total Civeo Corporation shareholders’ equity
352,976
490,143
Noncontrolling interest
636
662
Total shareholders’ equity
353,612
490,805
Total liabilities and shareholders’ equity
$
732,936
$
969,912
The accompanying notes are an integral part of these financial statements.
6
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, June 30, 2019
$
57,200
$
—
$
1,567,162
$
(744,058)
$
(5,472)
$
(364,786)
$
—
$
510,046
Net income (loss)
—
—
—
4,996
—
—
60
5,056
Currency translation adjustment
—
—
—
—
—
(12,096)
—
(12,096)
Dividends paid
—
—
—
—
—
—
(60)
(60)
Dividends attributable to Class A preferred shares
464
—
—
(464)
—
—
—
—
Share-based compensation
—
—
2,572
—
—
—
—
2,572
Balance, September 30, 2019
$
57,664
$
—
$
1,569,734
$
(739,526)
$
(5,472)
$
(376,882)
$
—
$
505,518
Balance, June 30, 2020
$
59,068
$
—
$
1,575,788
$
(911,992)
$
(6,930)
$
(382,315)
$
624
$
334,243
Net income (loss)
—
—
—
6,989
—
—
434
7,423
Currency translation adjustment
—
—
—
—
—
11,103
28
11,131
Dividends paid
—
—
—
—
—
—
(450)
(450)
Dividends attributable to Class A preferred shares
472
—
—
(472)
—
—
—
—
Share-based compensation
—
—
1,265
—
—
—
—
1,265
Balance, September 30, 2020
$
59,540
$
—
$
1,577,053
$
(905,475)
$
(6,930)
$
(371,212)
$
636
$
353,612
Balance, December 31, 2018
$
56,280
$
—
$
1,562,133
$
(710,551)
$
(1,189)
$
(371,249)
$
—
$
535,424
Net income (loss)
—
—
—
(26,892)
—
—
60
(26,832)
Currency translation adjustment
—
—
—
—
—
(5,633)
—
(5,633)
Dividends paid
—
—
—
—
—
—
(60)
(60)
Cumulative effect of implementation of ASU 2014-09
—
—
—
(699)
—
—
—
(699)
Dividends attributable to Class A preferred shares
1,384
—
—
(1,384)
—
—
—
—
Share-based compensation
—
—
7,601
—
(4,283)
—
—
3,318
Balance, September 30, 2019
$
57,664
$
—
$
1,569,734
$
(739,526)
$
(5,472)
$
(376,882)
$
—
$
505,518
Balance, December 31, 2019
$
58,129
$
—
$
1,572,249
$
(771,590)
$
(5,472)
$
(363,173)
$
662
$
490,805
Net income (loss)
—
—
—
(132,474)
—
—
914
(131,560)
Currency translation adjustment
—
—
—
—
—
(8,039)
14
(8,025)
Dividends paid
—
—
—
—
—
—
(954)
(954)
Dividends attributable to Class A preferred shares
1,411
—
—
(1,411)
—
—
—
—
Share-based compensation
—
—
4,804
—
(1,458)
—
—
3,346
Balance, September 30, 2020
$
59,540
$
—
$
1,577,053
$
(905,475)
$
(6,930)
$
(371,212)
$
636
$
353,612
Preferred Shares (in thousands)
Common Shares (in thousands)
Balance, December 31, 2019
9,042
169,556
Share-based compensation
—
1,026
Balance, September 30, 2020
9,042
170,582
The accompanying notes are an integral part of these financial statements.
7
CIVEO CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
Nine Months Ended September 30,
2020
2019
Cash flows from operating activities:
Net loss
$
(131,560)
$
(26,832)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization
72,527
92,974
Impairment charges
144,120
5,546
Loss on extinguishment of debt
383
—
Deferred income tax benefit
(8,941)
(14,732)
Non-cash compensation charge
4,804
7,601
Gains on disposals of assets
(2,581)
(4,095)
Provision (benefit) for loss on receivables, net of recoveries
45
(39)
Other, net
(2,730)
2,530
Changes in operating assets and liabilities:
Accounts receivable
5,355
(30,227)
Inventories
194
(1,175)
Accounts payable and accrued liabilities
1,247
4,958
Taxes payable
51
345
Other current and noncurrent assets and liabilities, net
(2,239)
(3,328)
Net cash flows provided by operating activities
80,675
33,526
Cash flows from investing activities:
Capital expenditures
(6,244)
(25,517)
Payments related to acquisitions, net of cash acquired
—
(16,439)
Proceeds from disposition of property, plant and equipment
3,336
5,482
Other, net
4,619
1,762
Net cash flows provided by (used in) investing activities
1,711
(34,712)
Cash flows from financing activities:
Revolving credit borrowings
324,611
340,494
Revolving credit repayments
(369,122)
(310,946)
Term loan repayments
(31,092)
(26,085)
Debt issuance costs
(2,583)
(1,950)
Taxes paid on vested shares
(1,458)
(4,283)
Net cash flows used in financing activities
(79,644)
(2,770)
Effect of exchange rate changes on cash
865
(344)
Net change in cash and cash equivalents
3,607
(4,300)
Cash and cash equivalents, beginning of period
3,331
12,372
Cash and cash equivalents, end of period
$
6,938
$
8,072
Non-cash financing activities:
Preferred dividends paid-in-kind
$
1,411
$
1,384
The accompanying notes are an integral part of these financial statements.
8
CIVEO CORPORATION
NOTES TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS
1.DESCRIPTION OF BUSINESSAND BASIS OF PRESENTATION
Description of the Business
We are a hospitality company servicing the natural resources industry in Canada, Australia and the U.S. We provide a full suite of hospitality services for our guests, including lodging, 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 of accommodation facilities, 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 and iron ore producing regions, and our customers include major and independent oil and gas 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, 2019.
2.RECENT ACCOUNTING PRONOUNCEMENTS
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (the FASB), which are adopted by us as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards or other guidance updates, which are not yet effective, will not have a material impact on our consolidated financial statements upon adoption.
In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses” (ASU 2016-13). This new standard changes how companies measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 is effective for financial statements issued for reporting periods beginning after December 15, 2019 and interim periods within the reporting periods. We adopted ASU 2016-13 as of January 1, 2020. The adoption of this new standard did not have a material impact on our consolidated financial statements.
9
CIVEO CORPORATION
NOTES TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
3.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 September 30,
Nine Months Ended September 30,
2020
2019
2020
2019
Canada
Accommodation revenues
$
49,798
$
79,939
$
156,068
$
203,774
Mobile facility rental revenues
13,135
3,048
21,715
5,648
Food service and other services revenues
8,852
8,084
26,336
25,507
Manufacturing revenues
—
—
—
1,014
Total Canada revenues
71,785
91,071
204,119
235,943
Australia
Accommodation revenues
$
39,470
$
33,056
$
106,988
$
92,473
Food service and other services revenues
25,215
14,687
63,881
14,687
Total Australia revenues
64,685
47,743
170,869
107,160
U.S.
Accommodation revenues
$
394
$
1,655
$
1,892
$
11,354
Mobile facility rental revenues
3,218
6,952
13,275
21,175
Manufacturing revenues
2,772
714
6,159
3,116
Food service and other services revenues
3
28
37
118
Total U.S. revenues
6,387
9,349
21,363
35,763
Total revenues
$
142,857
$
148,163
$
396,351
$
378,866
Our payment terms vary by the type and location of our customer and the products or services offered. The term between invoicing and when our performance obligations are satisfied is not significant. Payment terms are generally within 30 days. We do not have significant financing components or significant payment terms.
As of September 30, 2020, 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 (in thousands):
For the years ending December 31,
2020
2021
2022
Thereafter
Total
Revenue expected to be recognized as of September 30, 2020
$
33,002
$
61,031
$
29,120
$
11,820
$
134,973
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.
As of September 30, 2020 and December 31, 2019, 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.
During the first quarter of 2020 and the second and fourth quarters of 2019, we wrote down certain long-lived assets to fair value. We also recorded goodwill impairment charges related to one of our reporting units during the first quarter of 2020 and one of our reporting units during the fourth quarter of 2019. Our estimates of fair value required us to use significant unobservable inputs, representative of Level 3 fair value measurements, including numerous assumptions with respect to future
10
CIVEO CORPORATION
NOTES TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS
(Continued)
circumstances that might directly impact each of the relevant asset groups’ operations in the future and are therefore uncertain. We estimated the fair value when conducting the goodwill impairment and long-lived asset impairment tests primarily using an income approach. The discount rates used to value our reporting units for the interim goodwill impairment test, as well as the Canadian and U.S. segments long-lived asset impairment analysis ranged between 10.5% and 14.0%. These assumptions with respect to future circumstances included future cash flows, oil, met coal and natural gas prices, anticipated spending by our customers, the cost of capital, and industry and/or local market conditions. During the fourth quarter of 2019, our estimate of fair value of corporate office space in Canada and during the second quarter of 2019, our estimate of fair value of land in Australia, were based on appraisals from third parties. See Note 6 – Impairment Charges for further information.
During the third quarter of 2019, we acquired Action Industrial Catering (Action) and recorded the assets acquired and liabilities assumed at fair value. Determining the fair value of these assets and liabilities required the exercise of significant judgment, including the amount and timing of expected future cash flows, long-term growth rates and discount rates. The cash flows employed in the valuation are based on our best estimates of future sales, earnings and cash flows after considering factors such as general market conditions, expected future customer orders, contracts with suppliers, labor costs, changes in working capital, long-term business plans and recent operating performance. See Note 7 – Acquisitions for further information.
5.DETAILS OF SELECTED BALANCE SHEET ACCOUNTS
Additional information regarding selected balance sheet accounts at September 30, 2020 and December 31, 2019 is presented below (in thousands):
September 30, 2020
December 31, 2019
Accounts receivable, net:
Trade
$
68,848
$
76,370
Unbilled revenue
21,819
23,041
Other (1)
2,357
335
Total accounts receivable
93,024
99,746
Allowance for credit losses
(270)
(253)
Total accounts receivable, net
$
92,754
$
99,493
(1)As of September 30, 2020, Other accounts receivable includes a $2.4 million receivable related to the Canada Emergency Wage Subsidy (CEWS), a subsidy implemented by the Canadian government in response to the COVID-19 pandemic. Other income related to the CEWS during the three and nine months ended September 30, 2020 was $3.6 million and $9.7 million, respectively.