Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 23, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-36246 | |
Entity Registrant Name | Civeo Corp | |
Entity Central Index Key | 0001590584 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | A1 | |
Entity Tax Identification Number | 98-1253716 | |
Entity Address, Address Line One | Three Allen Center | |
Entity Address, Address Line Two | 333 Clay Street | |
Entity Address, Address Line Three | Suite 4980 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77002 | |
City Area Code | 713 | |
Local Phone Number | 510-2400 | |
Title of 12(b) Security | Common Shares, no par value | |
Trading Symbol | CVEO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 170,582,021 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues: | ||||
Total revenues | $ 142,857 | $ 148,163 | $ 396,351 | $ 378,866 |
Costs and expenses: | ||||
Selling, general and administrative expenses | 13,462 | 14,334 | 38,889 | 42,960 |
Depreciation and amortization expense | 24,820 | 31,196 | 72,527 | 92,974 |
Impairment expense | 0 | 0 | 144,120 | 5,546 |
Other operating expense | 51 | 277 | 755 | 109 |
Total costs and expenses | 135,767 | 145,287 | 540,171 | 405,939 |
Operating income (loss) | 7,090 | 2,876 | (143,820) | (27,073) |
Interest expense | (3,646) | (7,315) | (13,095) | (20,670) |
Loss on extinguishment of debt | (383) | 0 | (383) | 0 |
Interest income | 0 | 17 | 20 | 66 |
Other income | 4,542 | 2,849 | 17,209 | 6,882 |
Income (loss) before income taxes | 7,603 | (1,573) | (140,069) | (40,795) |
Income tax (expense) benefit | (180) | 6,629 | 8,509 | 13,963 |
Net income (loss) | 7,423 | 5,056 | (131,560) | (26,832) |
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 (in dollars per share) | $ 0.03 | $ 0.02 | $ (0.79) | $ (0.17) |
Diluted net income (loss) per share attributable to Civeo Corporation common shareholders (in dollars per share) | $ 0.03 | $ 0.02 | $ (0.79) | $ (0.17) |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 169,924 | 167,640 | 169,420 | 166,842 |
Diluted (in shares) | 170,544 | 168,282 | 169,420 | 166,842 |
Service and other | ||||
Revenues: | ||||
Total revenues | $ 136,523 | $ 140,349 | $ 375,928 | $ 353,147 |
Costs and expenses: | ||||
Service and other costs | 92,147 | 93,642 | 267,051 | 243,945 |
Rental | ||||
Revenues: | ||||
Total revenues | 3,217 | 6,942 | 13,261 | 21,057 |
Costs and expenses: | ||||
Service and other costs | 3,131 | 5,072 | 11,559 | 16,579 |
Product | ||||
Revenues: | ||||
Total revenues | 3,117 | 872 | 7,162 | 4,662 |
Costs and expenses: | ||||
Service and other costs | $ 2,156 | $ 766 | $ 5,270 | $ 3,826 |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
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) |
Unaudited Consolidated Statem_3
Unaudited Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation charges, taxes | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
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 | 0 | 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 |
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 | 0 | 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) | 0 | 0 |
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 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred shares, par value (in dollars per share) | $ 0 | $ 0 |
Preferred shares, authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred shares, issued (in shares) | 9,042 | 9,042 |
Preferred shares, outstanding (in shares) | 9,042 | 9,042 |
Preferred shares, liquidation preference | $ 95,039 | $ 93,627 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 550,000,000 | 550,000,000 |
Common stock, shares issued (in shares) | 173,746,532 | 171,656,039 |
Common stock, shares outstanding (in shares) | 170,582,021 | 169,556,403 |
Treasury shares (in shares) | 3,164,511 | 2,099,636 |
Unaudited Consolidated Statem_4
Unaudited Consolidated Statements of Changes in Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Preferred Shares | Common Shares | Additional Paid-in Capital | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Treasury Shares | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
Beginning balance at Dec. 31, 2018 | $ 535,424 | $ (699) | $ 56,280 | $ 1,562,133 | $ (710,551) | $ (699) | $ (1,189) | $ (371,249) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | (26,832) | (26,892) | $ 60 | |||||||
Currency translation adjustment | (5,633) | (5,633) | ||||||||
Dividends paid | (60) | (60) | ||||||||
Dividends attributable to Class A preferred (shares) | 1,384 | |||||||||
Dividends attributable to Class A preferred shares | (1,384) | |||||||||
Share-based compensation | 3,318 | 7,601 | (4,283) | |||||||
Ending balance at Sep. 30, 2019 | 505,518 | 57,664 | 1,569,734 | (739,526) | (5,472) | (376,882) | ||||
Beginning balance at Jun. 30, 2019 | 510,046 | 57,200 | 1,567,162 | (744,058) | (5,472) | (364,786) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 5,056 | 4,996 | 60 | |||||||
Currency translation adjustment | (12,096) | (12,096) | ||||||||
Dividends paid | (60) | (60) | ||||||||
Dividends attributable to Class A preferred (shares) | 464 | |||||||||
Dividends attributable to Class A preferred shares | (464) | |||||||||
Share-based compensation | 2,572 | 2,572 | ||||||||
Ending balance at Sep. 30, 2019 | 505,518 | 57,664 | 1,569,734 | (739,526) | (5,472) | (376,882) | ||||
Beginning balance at Dec. 31, 2019 | 490,805 | 58,129 | 1,572,249 | (771,590) | (5,472) | (363,173) | 662 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | (131,560) | (132,474) | 914 | |||||||
Currency translation adjustment | (8,025) | (8,039) | 14 | |||||||
Dividends paid | (954) | (954) | ||||||||
Dividends attributable to Class A preferred (shares) | 1,411 | |||||||||
Dividends attributable to Class A preferred shares | (1,411) | |||||||||
Share-based compensation | 3,346 | 4,804 | (1,458) | |||||||
Ending balance at Sep. 30, 2020 | 353,612 | $ 59,540 | 1,577,053 | (905,475) | (6,930) | (371,212) | 636 | |||
Beginning balance (in shares) at Dec. 31, 2019 | 9,042 | 169,556 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Share-based compensation (in shares) | 0 | 1,026 | ||||||||
Ending balance (in shares) at Sep. 30, 2020 | 9,042 | 170,582 | ||||||||
Beginning balance at Jun. 30, 2020 | 334,243 | $ 59,068 | 1,575,788 | (911,992) | (6,930) | (382,315) | 624 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | 7,423 | 6,989 | 434 | |||||||
Currency translation adjustment | 11,131 | 11,103 | 28 | |||||||
Dividends paid | (450) | (450) | ||||||||
Dividends attributable to Class A preferred (shares) | 472 | |||||||||
Dividends attributable to Class A preferred shares | (472) | |||||||||
Share-based compensation | 1,265 | 1,265 | ||||||||
Ending balance at Sep. 30, 2020 | $ 353,612 | $ 59,540 | $ 1,577,053 | $ (905,475) | $ (6,930) | $ (371,212) | $ 636 | |||
Ending balance (in shares) at Sep. 30, 2020 | 9,042 | 170,582 |
Unaudited Consolidated Statem_5
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 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 | 0 |
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 | 0 | (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 |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF BUSINESS AND 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. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | 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. |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | 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 Nine Months Ended 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 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 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 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. |
DETAILS OF SELECTED BALANCE SHE
DETAILS OF SELECTED BALANCE SHEET ACCOUNTS | 9 Months Ended |
Sep. 30, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
DETAILS OF SELECTED BALANCE SHEET ACCOUNTS | 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. September 30, 2020 December 31, 2019 Inventories: Finished goods and purchased products $ 4,538 $ 3,982 Work in process 18 813 Raw materials 1,219 1,082 Total inventories $ 5,775 $ 5,877 Estimated September 30, 2020 December 31, 2019 Property, plant and equipment, net: Land $ 47,049 $ 43,147 Accommodations assets 3 — 15 1,651,178 1,696,425 Buildings and leasehold improvements 7 — 20 33,714 26,108 Machinery and equipment 4 — 15 12,110 12,060 Office furniture and equipment 3 — 7 59,432 58,005 Vehicles 3 — 5 14,711 14,604 Construction in progress 5,551 4,286 Total property, plant and equipment 1,823,745 1,854,635 Accumulated depreciation (1,342,351) (1,264,326) Total property, plant and equipment, net $ 481,394 $ 590,309 During the second quarter of 2020, we reclassified $6.6 million of assets held for sale back into property, plant and equipment due to no longer meeting the accounting requirements of held for sale assets. September 30, 2020 December 31, 2019 Accrued liabilities: Accrued compensation $ 17,350 $ 17,169 Accrued taxes, other than income taxes 3,113 3,152 Other 1,766 1,434 Total accrued liabilities $ 22,229 $ 21,755 |
IMPAIRMENT CHARGES
IMPAIRMENT CHARGES | 9 Months Ended |
Sep. 30, 2020 | |
Asset Impairment Charges [Abstract] | |
IMPAIRMENT CHARGES | IMPAIRMENT CHARGES Quarter ended March 31, 2020 . During the first quarter of 2020, we recorded impairment expense related to goodwill and long-lived assets. The spread of the COVID-19 coronavirus (COVID-19) and the response thereto during the first quarter of 2020 negatively impacted the global economy. The resulting unprecedented decline in oil demand, coupled with disagreements between Saudi Arabia and Russia about production limits, resulted in a collapse of global oil prices in March 2020, thereby creating unprecedented downward pressure on stock prices in the energy industry, particularly small-cap companies with operations in the U.S. and Canada, such as Civeo. As a result, we experienced a sustained reduction of our share price during the first quarter of 2020. Our market capitalization implied an enterprise value which was significantly less than the sum of the estimated fair values of our reporting units, and we determined that an indicator of a goodwill impairment was present as of March 31, 2020. Accordingly, we performed an interim goodwill impairment test as of March 31, 2020, and the carrying amount of our Canadian reporting unit exceeded the reporting unit's fair value. Based on the results of the impairment test, we reduced the value of our goodwill in our Canadian reporting unit to zero and recognized impairment expense in the first quarter of 2020 of $93.6 million. Furthermore, as a result of the decline in global oil prices and forecasts for a potentially protracted period of lower prices, as well as the goodwill impairment in our Canadian segment, we determined all asset groups within this segment had experienced a trigger that indicated that the carrying values might not be recoverable. Accordingly, we assessed the carrying value of each asset group to determine if it continued to be recoverable based on estimated future cash flows. Based on the assessment, the carrying values of certain asset groups were determined to not be fully recoverable, and we proceeded to compare the estimated fair value of these asset groups to their respective carrying values. As a result, certain asset groups were written down to their estimated fair values of $43.5 million and we recorded impairment expense of $38.1 million related to certain long-lived assets in our Canadian segment. Also, as a result of the decline in global oil prices and forecasts for a potentially protracted period of lower prices, we reviewed all asset groups in our U.S. segment to determine if an indicator of impairment had occurred that would indicate that the carrying values of the asset groups in the segment might not be recoverable. We determined that certain asset groups within the segment had experienced an indicator of impairment, and thus we assessed the carrying values of our long-lived assets in the U.S. to determine if they continued to be recoverable based on estimated future cash flows. Based on the assessment, the carrying values of certain of our U.S. asset groups were determined to not be recoverable, and we proceeded to compare the estimated fair values of the asset groups to their respective carrying values. Accordingly, these assets were written down to their estimated fair values of $12.5 million. We recorded impairment expense of $12.4 million during the first quarter of 2020 related to our U.S. segment. Quarter ended June 30, 2019 . During the second quarter of 2019, we identified indicators that certain long-lived assets in Australia may be impaired due to market developments, including the non-renewal of certain land development approval agreements. We assessed the carrying values of the related assets to determine if they continued to be recoverable based on estimated future cash flows. Based on the assessment, the carrying values were determined to not be fully recoverable, and we proceeded to compare the estimated fair value of the assets to their respective carrying values. Accordingly, the assets were written down to their estimated fair values of $0.5 million. As a result of the analysis described above, we recorded impairment expense of $4.5 million. Additionally, during the second quarter of 2019, we identified a liability related to an asset retirement obligation (ARO) at one of our villages in Australia that should have been recorded in 2011. We determined that the error was not material to our previously issued financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018, and therefore, corrected the error in the second quarter of 2019. Specifically, we recorded the following amounts in the second quarter 2019 unaudited consolidated statement of operations related to prior periods: (i) additional accretion expense related to the ARO of $0.9 million, (ii) additional depreciation and amortization expense of $0.5 million related to amortization of the related asset retirement cost and (iii) additional impairment expense related to the impairment of the asset retirement cost of $1.0 million offset by recognition of an ARO liability totaling $2.3 million as of June 30, 2019. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Action On July 1, 2019, we acquired Action, a provider of catering and managed services to the mining industry in Western Australia. We funded the purchase price of $16.9 million in cash through a combination of cash on hand and borrowings under our revolving credit facility. Action's operations are reported as part of our Australia reporting business segment beginning on July 1, 2019, the date of acquisition. This acquisition was accounted for in accordance with the acquisition method of accounting for business combinations, which required us to record the assets acquired and the liabilities assumed at their fair values at July 1, 2019. Our estimates of the fair value for such assets and liabilities required significant assumptions and judgment. Based on the final purchase price allocation, intangible assets acquired totaled $8.4 million and consisted primarily of customer contracts and a trade name. In addition, we recognized goodwill of $7.9 million. Noralta On April 2, 2018, we acquired Noralta Lodge Ltd. (Noralta). During the second quarter of 2020, $5.0 million in cash was released to us from escrow to cover certain agreed upon indemnification claims. As a result of this settlement, we recorded $4.7 million in Other income in the accompanying unaudited consolidated statements of operations for the nine months ended September 30, 2020. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 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. We also apply the treasury stock method with respect to certain share-based awards in the calculation of diluted earnings per share, if dilutive. 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator: Net income (loss) attributable to Civeo common shareholders $ 6,517 $ 4,532 $ (133,885) $ (28,276) Less: income allocated to participating securities (944) (653) — — Basic net income (loss) attributable to Civeo Corporation common shareholders $ 5,573 $ 3,879 $ (133,885) $ (28,276) Add: undistributed income attributable to participating securities 944 653 — — Less: undistributed income reallocated to participating securities (942) (651) — — Diluted net income (loss) attributable to Civeo Corporation common shareholders $ 5,575 $ 3,881 $ (133,885) $ (28,276) Denominator: Weighted average shares outstanding - basic 169,924 167,640 169,420 166,842 Dilutive shares - share-based awards 620 642 — — Weighted average shares outstanding - diluted 170,544 168,282 169,420 166,842 Basic net income (loss) per share attributable to Civeo Corporation common shareholders (1) $ 0.03 $ 0.02 $ (0.79) $ (0.17) Diluted net income (loss) per share attributable to Civeo Corporation common shareholders (1) $ 0.03 $ 0.02 $ (0.79) $ (0.17) (1) Computations may reflect rounding adjustments. |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT As of September 30, 2020 and December 31, 2019, long-term debt consisted of the following (in thousands): September 30, 2020 December 31, 2019 Canadian 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 $ 187,371 $ 224,963 U.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 — — Canadian 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 55,478 134,117 Australian 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 29,697 — 272,546 359,080 Less: Unamortized debt issuance costs 2,692 2,208 Total debt 269,854 356,872 Less: Current portion of long-term debt, including unamortized debt issuance costs, net 32,978 35,080 Long-term debt, less current maturities $ 236,876 $ 321,792 We did not have any capitalized interest to net against interest expense for the three and nine months ended September 30, 2020 or 2019. Amended Credit Agreement As of December 31, 2019, our Credit Agreement, as then amended, provided for: (i) a $263.5 million revolving credit facility scheduled to mature on November 30, 2021 for certain lenders, allocated as follows: (A) a $20.0 million senior secured revolving credit facility in favor of certain of our U.S. subsidiaries, as borrowers; (B) a $183.5 million senior secured revolving credit facility in favor of Civeo and certain of our Canadian subsidiaries, as borrowers; and (C) a $60.0 million senior secured revolving credit facility in favor of one of our Australian subsidiaries, as borrower; and (ii) a $285.4 million term loan facility scheduled to mature on November 30, 2021 for certain lenders in favor of Civeo. On September 3, 2020, the third amendment to the Credit Agreement (as so amended, the Amended Credit Agreement) became effective, which, among other things: • Extended the maturity date by 18 months of the commitments and loans of each lender remaining a lender following the effectiveness of the Amended Credit Agreement to May 30, 2023. Certain lenders are not extending the maturity date of their commitments and loans; the loans of the non-extending lenders were paid in full primarily with borrowings under the facility, and their commitments terminated on the date the Amended Credit Agreement became effective. • Increased the margin applicable to loans and the commitment fee payable on the commitments of the lenders. Prior to entering into the Amended Credit Agreement, (i) the margin applicable to Eurocurrency loans, BBSY rate loans and B/A loans ranged from 2.25% to 4.00%, (ii) the margin applicable to ABR loans, Canadian Prime rate loans and U.S. Base rate loans ranged from 1.25% to 3.00% and (iii) the commitment fee ranged from 0.51% to 0.90%, in each case increasing as the total leverage ratio of the parent borrower and its subsidiaries increased from less than 2.00 to 1.00 to greater than 4.00 to 1.00. Following entry into the Amended Credit Agreement, these ranges have increased to (i) 3.50% to 4.50%, (ii) 2.50% to 3.50% and (iii) 0.875% to 1.125%, respectively, in each case as the total leverage ratio increases from less than 2.50 to 1.00 to greater than 3.50 to 1.00. • Decreased (i) the U.S. revolving commitments from $20.0 million to $10.0 million, (ii) the maximum permitted amount of U.S. L/C exposure from $15.0 million to $10.0 million to match the reduction in the U.S. revolving commitments, (iii) the Canadian revolving commitments from $183.5 million to $122.3 million and (iv) the Australian revolving commitments from $60.0 million to $35.0 million. We are required to maintain, if a qualified offering of indebtedness with gross proceeds in excess of $150 million has been consummated, a maximum leverage ratio of 4.00 to 1.00 and, if such qualified offering has not been consummated, a maximum leverage ratio not to exceed the ratios set forth in the following table: Period Ended Maximum Leverage Ratio September 30, 2020 3.75 : 1.00 December 31, 2020 and thereafter 3.50 : 1.00 U.S. dollar amounts outstanding under the facilities provided by the Amended Credit Agreement bear interest at a variable rate equal to the London Inter-Bank Offered Rate (LIBOR) plus a margin of 3.50% to 4.50%, or a base rate plus 2.50% to 3.50%, in each case based on a ratio of our total debt to consolidated EBITDA (as defined in the Amended Credit Agreement). Canadian dollar amounts outstanding bear interest at a variable rate equal to a B/A Discount Rate (as defined in the Amended Credit Agreement) based on the Canadian Dollar Offered Rate (CDOR) plus a margin of 3.50% to 4.50%, or a Canadian Prime rate plus a margin of 2.50% to 3.50%, in each case based on a ratio of our total debt to consolidated EBITDA. Australian dollar amounts outstanding under the Amended Credit Agreement bear interest at a variable rate equal to the Bank Bill Swap Bid Rate plus a margin of 3.50% to 4.50%, based on a ratio of our total debt to consolidated EBITDA. The future transitions from LIBOR and CDOR as interest rate benchmarks is addressed in the Amended Credit Agreement and at such time the transition from LIBOR or CDOR takes place, we will endeavor with the administrative agent to establish an alternate rate of interest to LIBOR or CDOR that gives due consideration to (1) the then prevailing market convention for determining a rate of interest for syndicated loans in the United States at such time for the replacement of LIBOR and (2) any evolving or then existing convention for similar Canadian Dollar denominated syndicated credit facilities for the replacement of CDOR. The Amended Credit Agreement contains customary affirmative and negative covenants that, among other things, limit or restrict: (i) indebtedness, liens and fundamental changes; (ii) asset sales; (iii) acquisitions of margin stock; (iv) specified acquisitions; (v) certain restrictive agreements; (vi) transactions with affiliates; and (vii) investments and other restricted payments, including dividends and other distributions. In addition, we must maintain an interest coverage ratio, defined as the ratio of consolidated EBITDA to consolidated interest expense, of at least 3.0 to 1.0 and our maximum leverage ratio, defined as the ratio of total debt to consolidated EBITDA, of no greater than 3.75 to 1.0 (as of September 30, 2020). As noted above, the permitted maximum leverage ratio decreases to 3.5 to 1.0 beginning December 31, 2020. Following a qualified offering of indebtedness with gross proceeds in excess of $150 million, we will be required to maintain a maximum senior secured ratio less than 2.50 to 1.0. Each of the factors considered in the calculations of these ratios are defined in the Amended Credit Agreement. EBITDA and consolidated interest, as defined, exclude goodwill and asset impairments, debt discount amortization, amortization of intangibles and other non-cash charges. We were in compliance with our covenants as of September 30, 2020. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Our operations are conducted through various subsidiaries in a number of countries throughout the world. We have provided for income taxes based upon the tax laws and rates in the countries in which operations are conducted and income is earned. We operate in three jurisdictions, Canada, Australia and the U.S., where statutory tax rates range from 21% to 30%. Our effective tax rate will vary from period to period based on changes in earnings mix between these different jurisdictions. We compute our quarterly taxes under the effective tax rate method by applying an anticipated annual effective rate to our year-to-date income, except for significant unusual or extraordinary transactions. Income taxes for any significant and unusual or extraordinary transactions are computed and recorded in the period in which the specific transaction occurs. As of September 30, 2020, Canada and the U.S. were considered loss jurisdictions for tax accounting purposes and were removed from the annual effective tax rate computation for purposes of computing the interim tax provision. As of September 30, 2019, the U.S. was considered a loss jurisdiction for tax accounting purposes and was removed from the 2019 annual effective tax rate computation for purposes of computing the interim tax provision. Our income tax expense for the three months ended September 30, 2020 totaled $0.2 million, or 2.4% of pretax loss, compared to a benefit of $6.6 million, or 421.4% of pretax income, for the three months ended September 30, 2019. For the three months ended September 30, 2020, we recorded a tax expense of $0.1 million related to foreign withholding and U.S. state income taxes. Additionally, the effective tax rate for the three months ended September 30, 2019 was impacted by a tax benefit of $3.0 million related to a reduction in the Alberta, Canada income tax rate, as well as a $2.1 million tax benefit related to the change in the valuation allowance in Australia resulting from the acquisition of Action. Under ASC 740-270, "Accounting for Income Taxes," the quarterly tax provision is based on our current estimate of the annual effective tax rate less the prior quarter's year-to-date provision. Our income tax benefit for the nine months ended September 30, 2020 totaled $8.5 million, or 6.1% of pretax loss, compared to a benefit of $14.0 million, or 34.2% of pretax loss, for the nine months ended September 30, 2019. Our effective tax rate for the nine months ended September 30, 2020 was impacted by considering Canada and the U.S. loss jurisdictions. Additionally, although Australia was not considered a loss jurisdiction for the nine months ended September 30, 2020, our effective tax rate was impacted by utilization of deferred tax assets and a release of the corresponding valuation allowance in Australia, resulting in no income tax expense for that jurisdiction. For the nine months ended September 30, 2020, we recorded a deferred tax benefit of $9.0 million, offset by a valuation allowance of $0.1 million, against the Canadian net deferred tax assets. Our effective tax rate for the nine months ended September 30, 2019 was impacted by a reduction in the Alberta, Canada income tax rate, as well as a change in the valuation allowance in Australia resulting from the acquisition of Action. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES We are a party to various pending or threatened claims, lawsuits and administrative proceedings seeking damages or other remedies concerning our commercial operations, products, employees and other matters, including warranty and product liability claims as a result of our products or operations. Although we can give no assurance about the outcome of pending legal and administrative proceedings and the effect such outcomes may have on us, management believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided for or covered by insurance, will not have a material adverse effect on our consolidated financial position, results of operations or liquidity. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended |
Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS Our accumulated other comprehensive loss increased $8.0 million from $363.2 million at December 31, 2019 to $371.2 million at September 30, 2020, as a result of foreign currency exchange rate fluctuations. Changes in other comprehensive loss during the nine months of 2020 were primarily driven by the Australian dollar increasing in value compared to the U.S. dollar, partially offset by the Canadian dollar decreasing in value compared to the U.S. dollar. Excluding intercompany balances, our Canadian dollar and Australian dollar functional currency net assets totaled approximately C$0.2 billion and A$0.3 billion, respectively, at September 30, 2020. |
GOODWILL
GOODWILL | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL Changes in the carrying amount of goodwill from December 31, 2019 to September 30, 2020 are as follows (in thousands): Canada Australia U.S. Total Goodwill, net of $19.9 million accumulated impairment loss as of December 31, 2019 $ 102,238 $ 7,935 $ — $ 110,173 Foreign currency translation (8,632) 151 — (8,481) Goodwill impairment (1) (93,606) — — (93,606) Goodwill, net of $113.5 million accumulated impairment loss as of September 30, 2020 $ — $ 8,086 $ — $ 8,086 (1) See Note 6 – Impairment Charges for further information. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Certain key employees and non-employee directors participate in the Amended and Restated 2014 Equity Participation Plan of Civeo Corporation (the Civeo Plan). The Civeo Plan authorizes our Board of Directors and the Compensation Committee of our Board of Directors to approve grants of options, awards of restricted shares, performance awards, phantom share awards and dividend equivalents, awards of deferred shares, and share payments to our employees and non-employee directors. No more than 28.7 million Civeo common shares are authorized to be issued under the Civeo Plan. Outstanding Awards Restricted Share Awards / Restricted Share Units / Deferred Share Awards. Compensation expense associated with restricted share awards, restricted share units and deferred share awards recognized in the three months ended September 30, 2020 and 2019 totaled $0.7 million and $1.5 million, respectively. Compensation expense associated with restricted share awards, restricted share units and deferred share awards recognized in the nine months ended September 30, 2020 and 2019 totaled $2.7 million and $4.3 million, respectively. The total fair value of restricted share awards, restricted share units and deferred share awards that vested during the three months ended September 30, 2020 and 2019 was less than $0.1 million. The total fair value of restricted share awards, restricted share units and deferred share awards that vested during the nine months ended September 30, 2020 and 2019 was $2.6 million and $4.0 million, respectively. At September 30, 2020, unrecognized compensation cost related to restricted share awards, restricted share units and deferred share awards was $2.0 million, which is expected to be recognized over a weighted average period of 1.0 years. Phantom Share Awards. On February 25, 2020, we granted 3,741,094 phantom share awards under the Civeo Plan, which vest in three three During the three months ended September 30, 2020 and 2019, we recognized compensation expense associated with phantom shares totaling $0.5 million and $0.1 million, respectively. During the nine months ended September 30, 2020 and 2019, we recognized compensation expense associated with phantom shares totaling $1.2 million and $3.5 million, respectively. At September 30, 2020, unrecognized compensation cost related to phantom shares was $2.9 million, as remeasured at September 30, 2020, which is expected to be recognized over a weighted average period of 2.3 years. Performance Awards. During the three months ended September 30, 2020 and 2019, we recognized compensation expense associated with performance awards totaling $0.6 million and $1.1 million, respectively. During the nine months ended September 30, 2020 and 2019, we recognized compensation expense associated with performance awards totaling $2.1 million and $3.3 million, respectively. The total fair value of performance share awards that vested during the three months ended September 30, 2020 and 2019 was zero. The total fair value of performance share awards that vested during the nine months ended September 30, 2020 and 2019 was $1.9 million and $10.1 million, respectively. |
SEGMENT AND RELATED INFORMATION
SEGMENT AND RELATED INFORMATION | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT AND RELATED INFORMATION | SEGMENT AND RELATED INFORMATION In accordance with current accounting standards regarding disclosures about segments of an enterprise and related information, we have identified the following reportable segments: Canada, Australia and U.S., which represent our strategic focus on hospitality services and workforce accommodations. Financial information by business segment for each of the three and nine months ended September 30, 2020 and 2019 is summarized in the following table (in thousands): Total Depreciation Operating Capital Total assets Three months ended September 30, 2020 Canada $ 71,785 $ 13,266 $ 1,007 $ 362 $ 691,634 Australia 64,685 10,739 9,890 1,825 266,591 U.S. 6,387 747 (3,197) 84 27,017 Corporate and eliminations — 68 (610) 126 (252,306) Total $ 142,857 $ 24,820 $ 7,090 $ 2,397 $ 732,936 Three months ended September 30, 2019 Canada $ 91,071 $ 18,219 $ 2,919 $ 2,851 $ 843,818 Australia 47,743 9,576 4,662 675 279,386 U.S. 9,349 1,611 (2,167) 576 51,376 Corporate and eliminations — 1,790 (2,538) 207 (163,757) Total $ 148,163 $ 31,196 $ 2,876 $ 4,309 $ 1,010,823 Nine months ended September 30, 2020 Canada $ 204,119 $ 39,812 $ (142,343) $ 1,203 $ 691,634 Australia 170,869 29,767 24,245 3,036 266,591 United States 21,363 2,525 (19,954) 1,468 27,017 Corporate and eliminations — 423 (5,768) 537 (252,306) Total $ 396,351 $ 72,527 $ (143,820) $ 6,244 $ 732,936 Nine months ended September 30, 2019 Canada $ 235,943 $ 50,574 $ (14,437) $ 19,294 $ 843,818 Australia 107,160 29,401 (1,302) 2,508 279,386 United States 35,763 7,713 (4,484) 2,870 51,376 Corporate and eliminations — 5,286 (6,850) 845 (163,757) Total $ 378,866 $ 92,974 $ (27,073) $ 25,517 $ 1,010,823 |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
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. |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of 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 Nine Months Ended 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 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | 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 |
DETAILS OF SELECTED BALANCE S_2
DETAILS OF SELECTED BALANCE SHEET ACCOUNTS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Accounts Receivable | 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. |
Schedule of Inventories | September 30, 2020 December 31, 2019 Inventories: Finished goods and purchased products $ 4,538 $ 3,982 Work in process 18 813 Raw materials 1,219 1,082 Total inventories $ 5,775 $ 5,877 |
Property, Plant and Equipment | Estimated September 30, 2020 December 31, 2019 Property, plant and equipment, net: Land $ 47,049 $ 43,147 Accommodations assets 3 — 15 1,651,178 1,696,425 Buildings and leasehold improvements 7 — 20 33,714 26,108 Machinery and equipment 4 — 15 12,110 12,060 Office furniture and equipment 3 — 7 59,432 58,005 Vehicles 3 — 5 14,711 14,604 Construction in progress 5,551 4,286 Total property, plant and equipment 1,823,745 1,854,635 Accumulated depreciation (1,342,351) (1,264,326) Total property, plant and equipment, net $ 481,394 $ 590,309 |
Schedule of Accrued Liabilities | September 30, 2020 December 31, 2019 Accrued liabilities: Accrued compensation $ 17,350 $ 17,169 Accrued taxes, other than income taxes 3,113 3,152 Other 1,766 1,434 Total accrued liabilities $ 22,229 $ 21,755 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator: Net income (loss) attributable to Civeo common shareholders $ 6,517 $ 4,532 $ (133,885) $ (28,276) Less: income allocated to participating securities (944) (653) — — Basic net income (loss) attributable to Civeo Corporation common shareholders $ 5,573 $ 3,879 $ (133,885) $ (28,276) Add: undistributed income attributable to participating securities 944 653 — — Less: undistributed income reallocated to participating securities (942) (651) — — Diluted net income (loss) attributable to Civeo Corporation common shareholders $ 5,575 $ 3,881 $ (133,885) $ (28,276) Denominator: Weighted average shares outstanding - basic 169,924 167,640 169,420 166,842 Dilutive shares - share-based awards 620 642 — — Weighted average shares outstanding - diluted 170,544 168,282 169,420 166,842 Basic net income (loss) per share attributable to Civeo Corporation common shareholders (1) $ 0.03 $ 0.02 $ (0.79) $ (0.17) Diluted net income (loss) per share attributable to Civeo Corporation common shareholders (1) $ 0.03 $ 0.02 $ (0.79) $ (0.17) |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | As of September 30, 2020 and December 31, 2019, long-term debt consisted of the following (in thousands): September 30, 2020 December 31, 2019 Canadian 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 $ 187,371 $ 224,963 U.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 — — Canadian 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 55,478 134,117 Australian 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 29,697 — 272,546 359,080 Less: Unamortized debt issuance costs 2,692 2,208 Total debt 269,854 356,872 Less: Current portion of long-term debt, including unamortized debt issuance costs, net 32,978 35,080 Long-term debt, less current maturities $ 236,876 $ 321,792 |
Schedule Of Changes In Maximum Leverage Ratio | We are required to maintain, if a qualified offering of indebtedness with gross proceeds in excess of $150 million has been consummated, a maximum leverage ratio of 4.00 to 1.00 and, if such qualified offering has not been consummated, a maximum leverage ratio not to exceed the ratios set forth in the following table: Period Ended Maximum Leverage Ratio September 30, 2020 3.75 : 1.00 December 31, 2020 and thereafter 3.50 : 1.00 |
GOODWILL (Tables)
GOODWILL (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill from December 31, 2019 to September 30, 2020 are as follows (in thousands): Canada Australia U.S. Total Goodwill, net of $19.9 million accumulated impairment loss as of December 31, 2019 $ 102,238 $ 7,935 $ — $ 110,173 Foreign currency translation (8,632) 151 — (8,481) Goodwill impairment (1) (93,606) — — (93,606) Goodwill, net of $113.5 million accumulated impairment loss as of September 30, 2020 $ — $ 8,086 $ — $ 8,086 (1) See Note 6 – Impairment Charges for further information. |
SEGMENT AND RELATED INFORMATI_2
SEGMENT AND RELATED INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial information by business segment for each of the three and nine months ended September 30, 2020 and 2019 is summarized in the following table (in thousands): Total Depreciation Operating Capital Total assets Three months ended September 30, 2020 Canada $ 71,785 $ 13,266 $ 1,007 $ 362 $ 691,634 Australia 64,685 10,739 9,890 1,825 266,591 U.S. 6,387 747 (3,197) 84 27,017 Corporate and eliminations — 68 (610) 126 (252,306) Total $ 142,857 $ 24,820 $ 7,090 $ 2,397 $ 732,936 Three months ended September 30, 2019 Canada $ 91,071 $ 18,219 $ 2,919 $ 2,851 $ 843,818 Australia 47,743 9,576 4,662 675 279,386 U.S. 9,349 1,611 (2,167) 576 51,376 Corporate and eliminations — 1,790 (2,538) 207 (163,757) Total $ 148,163 $ 31,196 $ 2,876 $ 4,309 $ 1,010,823 Nine months ended September 30, 2020 Canada $ 204,119 $ 39,812 $ (142,343) $ 1,203 $ 691,634 Australia 170,869 29,767 24,245 3,036 266,591 United States 21,363 2,525 (19,954) 1,468 27,017 Corporate and eliminations — 423 (5,768) 537 (252,306) Total $ 396,351 $ 72,527 $ (143,820) $ 6,244 $ 732,936 Nine months ended September 30, 2019 Canada $ 235,943 $ 50,574 $ (14,437) $ 19,294 $ 843,818 Australia 107,160 29,401 (1,302) 2,508 279,386 United States 35,763 7,713 (4,484) 2,870 51,376 Corporate and eliminations — 5,286 (6,850) 845 (163,757) Total $ 378,866 $ 92,974 $ (27,073) $ 25,517 $ 1,010,823 |
DESCRIPTION OF BUSINESS AND B_2
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION - Narrative (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 3 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
Revenue from Contract with Customer [Abstract] | |
Number of reportable segments | 3 |
REVENUE - Disaggregation of rev
REVENUE - Disaggregation of revenue by major categories (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 142,857 | $ 148,163 | $ 396,351 | $ 378,866 |
Mobile facility rental revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 3,217 | 6,942 | 13,261 | 21,057 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 71,785 | 91,071 | 204,119 | 235,943 |
Canada | Accommodation revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 49,798 | 79,939 | 156,068 | 203,774 |
Canada | Mobile facility rental revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 13,135 | 3,048 | 21,715 | 5,648 |
Canada | Food service and other services revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 8,852 | 8,084 | 26,336 | 25,507 |
Canada | Manufacturing revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 1,014 |
Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 64,685 | 47,743 | 170,869 | 107,160 |
Australia | Accommodation revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 39,470 | 33,056 | 106,988 | 92,473 |
Australia | Food service and other services revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 25,215 | 14,687 | 63,881 | 14,687 |
U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 6,387 | 9,349 | 21,363 | 35,763 |
U.S. | Accommodation revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 394 | 1,655 | 1,892 | 11,354 |
U.S. | Mobile facility rental revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 3,218 | 6,952 | 13,275 | 21,175 |
U.S. | Food service and other services revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 3 | 28 | 37 | 118 |
U.S. | Manufacturing revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 2,772 | $ 714 | $ 6,159 | $ 3,116 |
REVENUE - Revenue related to pe
REVENUE - Revenue related to performance obligations (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized | $ 134,973 |
Revenue, remaining performance obligation, expected timing of satisfaction, start date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized, period | 3 months |
Revenue expected to be recognized | $ 33,002 |
Revenue, remaining performance obligation, expected timing of satisfaction, start date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized, period | 1 year |
Revenue expected to be recognized | $ 61,031 |
Revenue, remaining performance obligation, expected timing of satisfaction, start date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized, period | 1 year |
Revenue expected to be recognized | $ 29,120 |
Revenue, remaining performance obligation, expected timing of satisfaction, start date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized, period | |
Revenue expected to be recognized | $ 11,820 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Measurement Input, Discount Rate | 9 Months Ended |
Sep. 30, 2020 | |
Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Goodwill impairment discount rate | 10.50% |
Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Goodwill impairment discount rate | 14.00% |
DETAILS OF SELECTED BALANCE S_3
DETAILS OF SELECTED BALANCE SHEET ACCOUNTS - Accounts Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable | $ 93,024 | $ 93,024 | $ 99,746 | ||
Allowance for credit losses | (270) | (270) | (253) | ||
Total accounts receivable, net | 92,754 | 92,754 | 99,493 | ||
Other income | 4,542 | $ 2,849 | 17,209 | $ 6,882 | |
Canada Emergency Wage Subsidy | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Other income | 3,600 | 9,700 | |||
Trade | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable | 68,848 | 68,848 | 76,370 | ||
Unbilled revenue | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable | 21,819 | 21,819 | 23,041 | ||
Other | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable | 2,357 | 2,357 | $ 335 | ||
Other | Canada Emergency Wage Subsidy | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable | $ 2,400 | $ 2,400 |
DETAILS OF SELECTED BALANCE S_4
DETAILS OF SELECTED BALANCE SHEET ACCOUNTS - Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventories: | ||
Finished goods and purchased products | $ 4,538 | $ 3,982 |
Work in process | 18 | 813 |
Raw materials | 1,219 | 1,082 |
Total inventories | $ 5,775 | $ 5,877 |
DETAILS OF SELECTED BALANCE S_5
DETAILS OF SELECTED BALANCE SHEET ACCOUNTS - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment | $ 1,823,745 | $ 1,854,635 | |
Accumulated depreciation | (1,342,351) | (1,264,326) | |
Total property, plant and equipment, net | 481,394 | 590,309 | |
Reclassification to property, plant, and equipment | $ 6,600 | ||
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment | 47,049 | 43,147 | |
Accommodations assets | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment | $ 1,651,178 | $ 1,696,425 | |
Accommodations assets | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life (in years) | 3 years | 3 years | |
Accommodations assets | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life (in years) | 15 years | 15 years | |
Buildings and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment | $ 33,714 | $ 26,108 | |
Buildings and leasehold improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life (in years) | 7 years | 7 years | |
Buildings and leasehold improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life (in years) | 20 years | 20 years | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment | $ 12,110 | $ 12,060 | |
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life (in years) | 4 years | 4 years | |
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life (in years) | 15 years | 15 years | |
Office furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment | $ 59,432 | $ 58,005 | |
Office furniture and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life (in years) | 3 years | 3 years | |
Office furniture and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life (in years) | 7 years | 7 years | |
Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment | $ 14,711 | $ 14,604 | |
Vehicles | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life (in years) | 3 years | 3 years | |
Vehicles | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life (in years) | 5 years | 5 years | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment | $ 5,551 | $ 4,286 |
DETAILS OF SELECTED BALANCE S_6
DETAILS OF SELECTED BALANCE SHEET ACCOUNTS - Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accrued liabilities: | ||
Accrued compensation | $ 17,350 | $ 17,169 |
Accrued taxes, other than income taxes | 3,113 | 3,152 |
Other | 1,766 | 1,434 |
Total accrued liabilities | $ 22,229 | $ 21,755 |
IMPAIRMENT CHARGES (Details)
IMPAIRMENT CHARGES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Jun. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||||
Goodwill, impairment loss | $ 93,606,000 | |||
Estimated fair value of Canadian lodge | 481,394,000 | $ 590,309,000 | ||
Canada | ||||
Property, Plant and Equipment [Line Items] | ||||
Goodwill, impairment loss | $ 0 | |||
Canada | ||||
Property, Plant and Equipment [Line Items] | ||||
Goodwill, impairment loss | 93,606,000 | |||
Impairment expense of long-lived assets | 38,100,000 | |||
Estimated fair value of Canadian lodge | 43,500,000 | |||
Canada | Canadian Lodge In Southern Alberta | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment expense of long-lived assets | $ 4,500,000 | |||
Estimated fair value of Canadian lodge | 500,000 | |||
Canada | Canada | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment expense of long-lived assets | 93,600,000 | |||
United States | ||||
Property, Plant and Equipment [Line Items] | ||||
Goodwill, impairment loss | 0 | |||
Impairment expense of long-lived assets | 12,400,000 | |||
Estimated fair value of Canadian lodge | $ 12,500,000 | |||
Australia | ||||
Property, Plant and Equipment [Line Items] | ||||
Goodwill, impairment loss | $ 0 | |||
Australia | Australia Village | Revision of Prior Period, Adjustment | Previously Unrecorded Liability For Asset Retirement Obligation | ||||
Property, Plant and Equipment [Line Items] | ||||
Accretion expense | 900,000 | |||
Depreciation and amortization | 500,000 | |||
Impairment expense | 1,000,000 | |||
Liabilities incurred | $ 2,300,000 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) $ in Thousands | Jul. 01, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 8,086 | $ 8,086 | $ 110,173 | ||||
Other income | 4,542 | $ 2,849 | 17,209 | $ 6,882 | |||
Action | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets acquired | $ 8,400 | ||||||
Goodwill | 7,900 | ||||||
Noralta | |||||||
Business Acquisition [Line Items] | |||||||
Cash released from escrow to cover certain agreed upon indemnification claims | $ 5,000 | ||||||
Other income | 4,700 | ||||||
Australia | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 8,086 | $ 8,086 | |||||
Australia | Action | |||||||
Business Acquisition [Line Items] | |||||||
Cash paid to acquire business | $ 16,900 |
EARNINGS PER SHARE - Calculatio
EARNINGS PER SHARE - Calculation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator: | ||||
Net income (loss) attributable to Civeo common shareholders | $ 6,517 | $ 4,532 | $ (133,885) | $ (28,276) |
Less: income allocated to participating securities | (944) | (653) | 0 | 0 |
Basic net income (loss) attributable to Civeo Corporation common shareholders | 5,573 | 3,879 | (133,885) | (28,276) |
Add: undistributed income attributable to participating securities | 944 | 653 | 0 | 0 |
Less: undistributed income reallocated to participating securities | (942) | (651) | 0 | 0 |
Diluted net income (loss) attributable to Civeo Corporation common shareholders | $ 5,575 | $ 3,881 | $ (133,885) | $ (28,276) |
Denominator: | ||||
Weighted average shares outstanding - basic (in shares) | 169,924 | 167,640 | 169,420 | 166,842 |
Dilutive shares - share-based awards (in shares) | 620 | 642 | 0 | 0 |
Weighted average shares outstanding - diluted (in shares) | 170,544 | 168,282 | 169,420 | 166,842 |
Basic net income (loss) per share attributable to Civeo Corporation common shareholders (in dollars per share) | $ 0.03 | $ 0.02 | $ (0.79) | $ (0.17) |
Diluted net income (loss) per share attributable to Civeo Corporation common shareholders (in dollars per share) | $ 0.03 | $ 0.02 | $ (0.79) | $ (0.17) |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2.4 | 4.5 | 4.9 | 6.9 |
Preferred Shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 28.8 | 28.2 | 28.8 | 28.2 |
DEBT - Long-term Debt (Details)
DEBT - Long-term Debt (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 272,546 | $ 359,080 |
Less: Unamortized debt issuance costs | 2,692 | 2,208 |
Total debt | 269,854 | 356,872 |
Less: Current portion of long-term debt, including unamortized debt issuance costs, net | 32,978 | 35,080 |
Long-term debt, less current maturities | 236,876 | 321,792 |
Canadian 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 | ||
Debt Instrument [Line Items] | ||
Canadian term loan | $ 187,371 | 224,963 |
Stated interest rate | 3.125% | |
Weighted average interest rate of term loan | 4.00% | |
U.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 | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 0 | 0 |
Interest rate on line of credit facility | 5.60% | |
Canadian 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 | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 55,478 | 134,117 |
Interest rate on line of credit facility | 4.20% | |
Australian 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 | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 29,697 | $ 0 |
Interest rate on line of credit facility | 3.60% |
DEBT - Amended Credit Agreement
DEBT - Amended Credit Agreement (Details) | Sep. 03, 2020USD ($) | Sep. 02, 2020USD ($) | Dec. 31, 2018 | Sep. 30, 2020USD ($)Lender | Sep. 30, 2020USD ($)Lender | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||||||
Leverage ratio | 3.75 | |||||
Interest coverage ratio | 3 | |||||
Maximum senior secured ratio | 2.50 | |||||
Line of credit | London Interbank Offered Rate (LIBOR) | Minimum | United States of America, Dollars | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 3.50% | |||||
Line of credit | London Interbank Offered Rate (LIBOR) | Maximum | United States of America, Dollars | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 4.50% | |||||
Line of credit | Base rate | Minimum | United States of America, Dollars | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 2.50% | |||||
Line of credit | Base rate | Minimum | Canada, Dollars | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 2.50% | |||||
Line of credit | Base rate | Maximum | United States of America, Dollars | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 3.50% | |||||
Line of credit | Base rate | Maximum | Canada, Dollars | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 3.50% | |||||
Line of credit | Canadian Dealer Offered Rate (CDOR) | Minimum | Canada, Dollars | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 3.50% | |||||
Line of credit | Canadian Dealer Offered Rate (CDOR) | Maximum | Canada, Dollars | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 4.50% | |||||
Line of credit | Bank Bill Swap Bid Rate (BBSY) | Minimum | Australia, Dollars | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 3.50% | |||||
Line of credit | Bank Bill Swap Bid Rate (BBSY) | Maximum | Australia, Dollars | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 4.50% | |||||
Credit facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | $ 15,000,000 | |||||
Leverage ratio | 3.75 | |||||
Number of lenders | Lender | 8 | 8 | ||||
Credit facility | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee percentage | 0.51% | |||||
Leverage ratio | 4 | |||||
Lender commitments, within credit agreement | $ 22,400,000 | $ 22,400,000 | ||||
Credit facility | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee percentage | 0.90% | |||||
Leverage ratio | 2 | |||||
Lender commitments, within credit agreement | 71,100,000 | 71,100,000 | ||||
Credit facility | Eurodollar Applicable Margin Rate, Bank Bill Swap Bid Rate (BBSY), and US Base Rate | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 2.25% | |||||
Credit facility | Eurodollar Applicable Margin Rate, Bank Bill Swap Bid Rate (BBSY), and US Base Rate | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 4.00% | |||||
Credit facility | Alternative Base Rate (ABR), Canadian Prime Rate, and US Base Rate | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.25% | |||||
Credit facility | Alternative Base Rate (ABR), Canadian Prime Rate, and US Base Rate | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 3.00% | |||||
Credit facility | US term loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Term loan, face amount | 285,400,000 | 285,400,000 | ||||
Third Amendment to the Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | $ 10,000,000 | |||||
Third Amendment to the Credit Agreement | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee percentage | 0.875% | |||||
Leverage ratio | 3.50 | |||||
Third Amendment to the Credit Agreement | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee percentage | 1.125% | |||||
Leverage ratio | 2.50 | |||||
Third Amendment to the Credit Agreement | Eurodollar Applicable Margin Rate, Bank Bill Swap Bid Rate (BBSY), and US Base Rate | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 3.50% | |||||
Third Amendment to the Credit Agreement | Eurodollar Applicable Margin Rate, Bank Bill Swap Bid Rate (BBSY), and US Base Rate | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 4.50% | |||||
Third Amendment to the Credit Agreement | Alternative Base Rate (ABR), Canadian Prime Rate, and US Base Rate | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 2.50% | |||||
Third Amendment to the Credit Agreement | Alternative Base Rate (ABR), Canadian Prime Rate, and US Base Rate | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 3.50% | |||||
Revolving credit facility | Credit facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | 263,500,000 | 263,500,000 | ||||
Revolving credit facility | Third Amendment to the Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Extended term | 18 months | |||||
Revolving credit facility, U.S. subsidiaries | Credit facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | $ 20,000,000 | 20,000,000 | 20,000,000 | |||
Outstanding letters of credit | 300,000 | 300,000 | ||||
Revolving credit facility, U.S. subsidiaries | Third Amendment to the Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | $ 10,000,000 | |||||
Revolving credit facility, Canadian subsidiaries | Credit facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | 183,500,000 | 183,500,000 | 183,500,000 | |||
Outstanding letters of credit | 2,600,000 | 2,600,000 | ||||
Revolving credit facility, Canadian subsidiaries | Third Amendment to the Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | 122,300,000 | |||||
Revolving credit facility, Australian subsidiaries | Credit facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | $ 60,000,000 | 60,000,000 | 60,000,000 | |||
Outstanding letters of credit | $ 500,000 | 500,000 | ||||
Revolving credit facility, Australian subsidiaries | Third Amendment to the Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | $ 35,000,000 | |||||
Maximum Leverage Ratio | ||||||
Line of Credit Facility [Line Items] | ||||||
Leverage ratio | 4 | |||||
Maximum Leverage Ratio | Revolving credit facility, Australian subsidiaries | Amended And restated syndicated facility agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Gross proceeds from qualified offering of indebtedness | $ 150,000,000 | |||||
Scenario, Forecast | Credit facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Leverage ratio | 3.50 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of Income Taxes [Line Items] | ||||
Income tax (expense) benefit | $ (180) | $ 6,629 | $ 8,509 | $ 13,963 |
Income tax benefit, percent of pretax loss | 2.40% | 421.40% | 6.10% | 34.20% |
Tax expense related to foreign withholding taxes | $ 100 | |||
Tax benefit that impacted effective tax rate | $ 3,000 | |||
Deferred income tax benefit | $ 8,941 | $ 14,732 | ||
Action | ||||
Schedule of Income Taxes [Line Items] | ||||
Valuation allowance | $ 2,100 | |||
Canada | ||||
Schedule of Income Taxes [Line Items] | ||||
Valuation allowance | 100 | |||
Deferred income tax benefit | $ 9,000 | |||
Minimum | ||||
Schedule of Income Taxes [Line Items] | ||||
Statutory tax rate, Canada, Australia and the U.S. | 21.00% | 21.00% | ||
Maximum | ||||
Schedule of Income Taxes [Line Items] | ||||
Statutory tax rate, Canada, Australia and the U.S. | 30.00% | 30.00% |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS - Narrative (Details) $ in Thousands, $ in Billions, $ in Billions | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2020CAD ($) | Sep. 30, 2020AUD ($) | Dec. 31, 2019USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Increase in other comprehensive loss, foreign currency exchange rate fluctuations during the period | $ 8,000 | |||
Accumulated other comprehensive loss | $ (371,212) | $ (363,173) | ||
International functional currency net assets | $ 0.2 | $ 0.3 |
GOODWILL (Details)
GOODWILL (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Goodwill, net of $19.9 million accumulated impairment loss as of December 31, 2019 | $ 110,173 | |
Foreign currency translation | (8,481) | |
Goodwill impairment | (93,606) | |
Goodwill, net of $113.5 million accumulated impairment loss as of September 30, 2020 | 8,086 | |
Goodwill, accumulated impairment loss | 113,500 | $ 19,900 |
Canada | ||
Goodwill [Roll Forward] | ||
Goodwill, net of $19.9 million accumulated impairment loss as of December 31, 2019 | 102,238 | |
Foreign currency translation | (8,632) | |
Goodwill impairment | (93,606) | |
Goodwill, net of $113.5 million accumulated impairment loss as of September 30, 2020 | 0 | |
Australia | ||
Goodwill [Roll Forward] | ||
Goodwill, net of $19.9 million accumulated impairment loss as of December 31, 2019 | 7,935 | |
Foreign currency translation | 151 | |
Goodwill impairment | 0 | |
Goodwill, net of $113.5 million accumulated impairment loss as of September 30, 2020 | 8,086 | |
U.S. | ||
Goodwill [Roll Forward] | ||
Goodwill, net of $19.9 million accumulated impairment loss as of December 31, 2019 | 0 | |
Foreign currency translation | 0 | |
Goodwill impairment | 0 | |
Goodwill, net of $113.5 million accumulated impairment loss as of September 30, 2020 | $ 0 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) | Feb. 25, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Share-based compensation arrangement, number of shares authorized | 28,700,000 | 28,700,000 | |||
Allocated share-based compensation expense | $ 1,200,000 | ||||
Restricted stock and deferred stock awards | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Allocated share-based compensation expense | $ 700,000 | $ 1,500,000 | 2,700,000 | $ 4,300,000 | |
Fair value of restricted share awards and deferred compensation that vested during the period | 100,000 | 100,000 | 2,600,000 | 4,000,000 | |
Unrecognized compensation cost related to share awards | 2,000,000 | $ 2,000,000 | |||
Unrecognized compensation cost related to share awards, expected weighted average vesting period. | 1 year | ||||
Phantom share units (PSUs) | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Allocated share-based compensation expense | 500,000 | 100,000 | 3,500,000 | ||
Unrecognized compensation cost related to share awards | 2,900,000 | $ 2,900,000 | |||
Unrecognized compensation cost related to share awards, expected weighted average vesting period. | 2 years 3 months 18 days | ||||
Phantom share units (PSUs) | Civeo Plan | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Phantom share units vested during the period (in shares) | 3,741,094 | ||||
Vesting period of share awards | 3 years | ||||
Phantom share units (PSUs) | Canadian Long-Term Incentive Plan | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Phantom share units vested during the period (in shares) | 1,221,725 | ||||
Vesting period of share awards | 3 years | ||||
Performance shares | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Allocated share-based compensation expense | 600,000 | 1,100,000 | $ 2,100,000 | 3,300,000 | |
Fair value of restricted share awards and deferred compensation that vested during the period | 0 | $ 0 | 1,900,000 | $ 10,100,000 | |
Unrecognized compensation cost related to share awards | $ 2,200,000 | $ 2,200,000 | |||
Unrecognized compensation cost related to share awards, expected weighted average vesting period. | 1 year 2 months 12 days |
SEGMENT AND RELATED INFORMATI_3
SEGMENT AND RELATED INFORMATION - Financial Information by Business Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||
Total revenues | $ 142,857 | $ 148,163 | $ 396,351 | $ 378,866 | |
Depreciation and amortization | 24,820 | 31,196 | 72,527 | 92,974 | |
Operating income (loss) | 7,090 | 2,876 | (143,820) | (27,073) | |
Capital expenditures | 2,397 | 4,309 | 6,244 | 25,517 | |
Total assets | 732,936 | 1,010,823 | 732,936 | 1,010,823 | $ 969,912 |
Canada | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 71,785 | 91,071 | 204,119 | 235,943 | |
Australia | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 64,685 | 47,743 | 170,869 | 107,160 | |
U.S. | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 6,387 | 9,349 | 21,363 | 35,763 | |
Operating segments | Canada | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 71,785 | 91,071 | 204,119 | 235,943 | |
Depreciation and amortization | 13,266 | 18,219 | 39,812 | 50,574 | |
Operating income (loss) | 1,007 | 2,919 | (142,343) | (14,437) | |
Capital expenditures | 362 | 2,851 | 1,203 | 19,294 | |
Total assets | 691,634 | 843,818 | 691,634 | 843,818 | |
Operating segments | Australia | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 64,685 | 47,743 | 170,869 | 107,160 | |
Depreciation and amortization | 10,739 | 9,576 | 29,767 | 29,401 | |
Operating income (loss) | 9,890 | 4,662 | 24,245 | (1,302) | |
Capital expenditures | 1,825 | 675 | 3,036 | 2,508 | |
Total assets | 266,591 | 279,386 | 266,591 | 279,386 | |
Operating segments | U.S. | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 6,387 | 9,349 | 21,363 | 35,763 | |
Depreciation and amortization | 747 | 1,611 | 2,525 | 7,713 | |
Operating income (loss) | (3,197) | (2,167) | (19,954) | (4,484) | |
Capital expenditures | 84 | 576 | 1,468 | 2,870 | |
Total assets | 27,017 | 51,376 | 27,017 | 51,376 | |
Corporate and eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Total revenues | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 68 | 1,790 | 423 | 5,286 | |
Operating income (loss) | (610) | (2,538) | (5,768) | (6,850) | |
Capital expenditures | 126 | 207 | 537 | 845 | |
Total assets | $ (252,306) | $ (163,757) | $ (252,306) | $ (163,757) |
Uncategorized Items - cveo-2020
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201409Member |