 HOUSTON, July 29, 2020 GLOBE NEWSWIRE -- Oil States International, Inc. NYSE: OIS reported a net loss of 24.6 million, or 0.41 per share, for the second quarter of 2020, on revenues of 146.2 million. Consolidated EBITDA Note A was a loss of 4.5 million. Excluding 5.4 million of severance and downsizing charges incurred during the quarter, Consolidated EBITDA totaled 0.9 million. The reported second quarter 2020 net loss included the following more significant charges and gains, which resulted in a net charge of 4.6 million after-tax, or 0.08 per share: Severance and downsizing charges totaled 5.4 million 4.3 million after-tax, or 0.07 per share Bad debt provision on receivables from customers claiming bankruptcy protection totaled 2.2 million 1.7 million after-tax, or 0.03 per share Non-cash fixed asset impairment charges totaled 3.0 million 2.4 million after-tax, or 0.04 per share Non-cash gain on extinguishment of convertible senior notes of 4.8 million 3.8 million after-tax, or 0.06 per shareSecond quarter 2020 highlights and corporate actions included: Generated 38.7 million in cash flow from operations Amended our revolving credit facility, with existing financial covenants suspended through March 30, 2021 in exchange for a reduction in the facility size to 200 million Reduced net debt defined as total debt less cash by 39.3 million, including the purchase of 12.0 million principal amount of our convertible senior notes at a 51 discount to par value Implemented significant costs saving measures, including an approximate 30 reduction in our U.S. workforceOil States President and Chief Executive Officer, Cindy B. Taylor, stated,As we projected on our first quarter earnings call held at the end of April, the market dislocations caused by the global response to the COVID-19 pandemic have been unprecedented. The impact on the energy industry has been extreme due to the rapid demand destruction for crude oil and the resulting inventory builds across the globe. U.S. land based drilling and completion activity fell sharply during the quarter, with the U.S. rig count declining 64 to a historical low of 265 rigs operating at the close of the second quarter.Our OffshoreManufactured Products segment proved resilient during the second quarter, with revenues increasing 4 due to an increase in project-driven revenues, partially offset by reduced short-cycle sales. Segment EBITDA margins also improved 149 basis points sequentially, reflecting the benefit of closing out projects in backlog efficiently along with cost reduction initiatives implemented. Backlog totaled 235 million as of June 30, 2020, a decline of 12 sequentially. Our bookings totaled 64 million, yielding a book-to-bill ratio for the second quarter of 0.7x, bringing the year-to-date ratio to 0.8x.Revenues in our Completion Services and Downhole Technologies businesses declined 56 and 64 sequentially driven by the steep reduction in industry activity in the U.S. shale play regions due to the low crude oil price environment. During the second quarter, both businesses implemented significant cost reduction measures in response to the material downturn in activity, leading to 4.9 million of severance and downsizing charges being incurred. The full benefit of these cost reduction measures should be realized during the third quarter.Importantly, we generated 39 million of cash flow from operations and bought in 12 million principal amount of our convertible senior notes at a 51 discount to par value. Cash on-hand at June 30 totaled 54 million while borrowings outstanding under our credit facility totaled 71 million. We amended our bank credit facility during the second quarter securing a covenant holiday through March 30, 2021 in exchange for reducing the facility size to 200 million. We believe that these actions have stabilized the Company during a very difficult period. We will continue to closely manage our debt, working capital and cash flow generation in the quarters to come.BUSINESS SEGMENT RESULTSSee Segment Data tablesOffshoreManufactured ProductsOffshoreManufactured Products reported revenues of 94.9 million and Segment EBITDA Note B of 15.0 million in the second quarter of 2020, compared to revenues of 91.2 million and Segment EBITDA of 13.1 million reported in the first quarter of 2020. Revenues increased 4 sequentially, due to an increase in the segments project-driven revenue, which was partially offset by lower demand for U.S. land-based short-cycle products. Segment EBITDA increased 15, driven by the higher revenues, efficient completion of projects in backlog and benefits from cost control measures implemented. Segment EBITDA margin in the second quarter of 2020 was 16 compared to 14 in the first quarter of 2020.Backlog totaled 235 million at June 30, 2020, a decrease of 12 sequentially and 17 year-over-year. Second quarter 2020 bookings totaled 64 million, yielding a book-to-bill ratio of 0.7x in the period and a year-to-date ratio of 0.8x.Well Site ServicesWell Site Services reported revenues of 36.3 million and a Segment EBITDA loss of 5.4 million in the second quarter of 2020, compared to revenues of 87.5 million and Segment EBITDA of 12.0 million reported in the first quarter of 2020. Both revenues and Segment EBITDA were adversely impacted by the sharp decline in customer demand for completion and production services, as well as incremental costs incurred from workforce reductions and facility closures. During the second quarter of 2020, the Completion Services business recorded a non-cash fixed asset impairment charge of 3.0 million, severance and downsizing charges of 3.5 million and a 0.7 million bad debt provision on a receivable from a customer claiming bankruptcy protection.Downhole TechnologiesDownhole Technologies reported revenues of 15.0 million and a Segment EBITDA loss of 5.5 million in the second quarter of 2020, compared to revenues of 41.1 million and Segment EBITDA of 5.3 million reported in the first quarter of 2020. Segment EBITDA declined due to the precipitous fall in U.S. completion activity, reduced manufacturing cost absorption, a 1.5 million bad debt provision on a receivable from a customer claiming bankruptcy protection and 1.3 million of incremental expenses associated with workforce reductions and facility closures.Interest Expense, NetThe Company reported net interest expense of 4.2 million in the second quarter of 2020, including 2.4 million of non-cash amortization of debt discount and deferred financing costs. Additionally, the Company expensed 0.5 million of deferred financing costs during the second quarter in connection with the amendment of its revolving credit facility.Other Income, NetDuring the second quarter of 2020, the Company recognized a non-cash gain of 4.8 million in connection with the purchase of 12.0 million principal amount of its 1.50 convertible senior notes due February 2023 at a significant discount to the carrying value of the recorded liability.Income TaxesThe Company recognized an effective tax rate benefit of 21.9 in the second quarter of 2020, which compared to an effective tax rate benefit of 8.9 in the first quarter of 2020. The effective tax rate benefit for the first quarter of 2020 was below the U.S. statutory rate primarily due to certain non-deductible expenses, including non-cash goodwill impairment charges.Financial ConditionOn June 17, 2020, the Company amended its revolving credit facility. The amendment provides for the suspension of financial maintenance covenants from July 1, 2020 to March 30, 2021, along with a reduction in the revolving credit facility size to 200 million. Borrowing availability is subject to a monthly borrowing base calculation beginning on July 1, 2020. The maturity date of the amended credit agreement remains January 30, 2022. As of June 30, 2020, 71.0 million was outstanding under the Companys amended revolving credit facility, while cash on-hand totaled 53.8 million. As of July 1, 2020, based on the then current borrowing base, the total amount available to be drawn under the amended revolving credit facility was 37.3 million.During the second quarter of 2020, the Company purchased 12.0 million principal amount of its outstanding 1.50 convertible senior notes for 5.9 million in cash. Since September 2019, the Company has purchased 25.4 million principal amount of its notes for 17.3 million in cash.The Companys total debt represented 25 of combined total debt and stockholders equity at June 30, 2020, consistent with the March 31, 2020 level. The Company was in compliance with its covenants under the amended revolving credit facility at June 30, 2020.Conference Call InformationThe call is scheduled for July 30, 2020 at 10:00 a.m. Central Time, is being webcast and can be accessed from the Companys website at Participants may also join the conference call by dialing 1 888 771-4371 in the United States or by dialing 1 847 585-4405 internationally and using the passcode 49833195. A replay of the conference call will be available one and a half hours after the completion of the call and can be accessed from the Companys website at About Oil StatesOil States International, Inc. is a global products and services company predominantly serving the drilling, completion, subsea, production and infrastructure sectors of the oil and gas industry. The Companys manufactured products include highly engineered capital equipment as well as products consumed in the drilling, well construction and production of oil and natural gas. Oil States is headquartered in Houston, Texas with manufacturing and service facilities strategically located across the globe. 