Fourth Quarter & Full Year 2021 Highlights:

• Fourth quarter revenues of $159.8 million, net income of $9.8 million and operating cash flow of $25.3 million;

• Fourth quarter Adjusted EBITDA of $34.5 million and free cash flow of $26.1 million;

• Reduced net leverage ratio to 1.49x as of December 31, 2021 from 1.86x as of September 30, 2021; and

• $88.5 million of operating cash flow and $87.3 million of free cash flow for the full year 2021.

HOUSTON & CALGARY, Alberta--(BUSINESS WIRE)--Civeo Corporation (NYSE:CVEO) today reported financial and operating results for the fourth quarter and year ended December 31, 2021.

�Despite pandemic-related headwinds throughout 2021, Civeo continued to operate safely, generate significant free cash flow, and substantially reduce our total debt balance as well as our net leverage ratio. We also replaced and refinanced our entire credit agreement, which extends the maturity of all of our debt outstanding to September 2025, and announced a share repurchase program,� said Bradley J. Dodson, Civeo's President and Chief Executive Officer.

Mr. Dodson continued, �I am proud of the Civeo team's execution and perseverance in this tough operating environment that helped us generate full-year operating cash flow of over $85 million. Our 2021 results and accomplishments were a testament to the hard work of our team and the winning combination of our diversified revenue profile and our continued capital discipline.�

Mr. Dodson added, �Our strategic investment in diversifying our revenue profile over the last few years has paid off again in 2021 as we have experienced volatility across our business segments related to the pandemic, international trade disputes and substantial commodity price fluctuations. We will continue to seek opportunities to expand our customer base and geographic footprint to reduce volatility in our free cash flow generation as we continue to reduce our leverage, improving our financial and strategic flexibility.�

Fourth Quarter 2021 Results

In the fourth quarter of 2021, Civeo generated revenues of $159.8 million and reported net income of $9.8 million, or $0.58 per diluted share. During the fourth quarter of 2021, Civeo produced operating cash flow of $25.3 million, Adjusted EBITDA of $34.5 million and free cash flow of $26.1 million.

By comparison, in the fourth quarter of 2020, Civeo generated revenues of $133.4 million and reported a net loss of $2.3 million, or $0.16 per share. During the fourth quarter of 2020, Civeo produced operating cash flow of $36.7 million, Adjusted EBITDA of $23.7 million and free cash flow of $33.2 million.

Overall, the increase in revenues and Adjusted EBITDA in the fourth quarter of 2021 compared to 2020 was primarily due to an increase in Canadian occupancy and Canadian mobile camp activity, partially offset by decreased Australian village billed rooms. Adjusted EBITDA was also positively impacted by a $3.8 million gain on sale of assets from the fourth quarter 2021 sale of our West Permian lodge, partially offset by a year-over-year increase in labor costs in Australia.

Full Year 2021 Results

For the full year 2021, the Company reported revenues of $594.5 million and a net loss of $0.6 million, or $0.04 per share. Adjusted EBITDA for the full year 2021 was $109.1 million. This compared to revenues of $529.7 million and a net loss of $136.1 million, or $9.64 per share, for the full year 2020. The loss in 2020 resulted in part from $144.1 million in goodwill and asset impairments, partially offset by $4.7 million of income associated with the settlement of a representations and warranties claim. Adjusted EBITDA was $108.1 million in 2020. Results for the full year of 2021 reflect the impact of a strengthened Australian and Canadian dollar relative to the U.S. dollar, which increased revenues and Adjusted EBITDA by $40.6 million and $9.8 million, respectively.

The modest increase in Adjusted EBITDA in 2021 as compared to 2020 was largely driven by increased mobile camp activity in our Canadian segment, as well as the favorable currency impact noted above, partially offset by decreased billed rooms and increased labor costs across the Australian segment.

Business Segment Results

(Unless otherwise noted, the following discussion compares the quarterly results for the fourth quarter of 2021 to the results for the fourth quarter of 2020.)

Canada

During the fourth quarter of 2021, the Canada segment generated revenues of $92.2 million, operating income of $6.9 million and Adjusted EBITDA of $23.1 million, compared to revenues of $65.5 million, operating loss of $4.1 million and Adjusted EBITDA of $13.8 million in the fourth quarter of 2020. Results from the fourth quarter of 2021 reflect the impact of a strengthened Canadian dollar relative to the U.S. dollar, which increased revenues and Adjusted EBITDA by $3.1 million and $0.8 million, respectively.

On a constant currency basis, the Canadian segment experienced a 36% period-over-period increase in revenues driven by (1) a 25% year-over-year increase in billed rooms and (2) increased mobile camp work related to pipeline construction. Adjusted EBITDA for the Canadian segment increased 68% year-over-year primarily due to the aforementioned dynamics and operating leverage.

Australia

During the fourth quarter of 2021, the Australia segment generated revenues of $62.3 million, operating income of $2.2 million and Adjusted EBITDA of $13.6 million, compared to revenues of $63.7 million, operating income of $3.6 million and Adjusted EBITDA of $17.2 million in the fourth quarter of 2020.

On a constant currency basis, the Australian segment experienced a 2% period-over-period decrease in revenues driven by decreased occupancy at our Bowen Basin villages. Australian village occupancy decreased 3% year-over-year largely due to continued uncertainty created by the China/Australia trade dispute and COVID-19. Adjusted EBITDA from the Australian segment decreased 21% year-over-year due to lower village occupancy as well as increased labor costs which were largely the result of COVID related travel and border restrictions.

U.S.

The U.S. segment generated revenues of $5.3 million, operating loss of $3.0 million and Adjusted EBITDA of $3.3 million in the fourth quarter of 2021, compared to revenues of $4.2 million, operating loss of $3.2 million and an Adjusted EBITDA loss of $1.4 million in the fourth quarter of 2020. The revenue and Adjusted EBITDA increase was primarily due to increased activity in our lodges and offshore business, as well as the aforementioned gain on the sale of our West Permian Lodge.

Financial Condition

As of December 31, 2021, Civeo had total liquidity of approximately $92.8 million, consisting of $86.5 million available under its revolving credit facilities and $6.3 million of cash on hand.

Civeo�s total debt outstanding on December 31, 2021 was $175.1 million, a $20.1 million decrease since September 30, 2021 and a $76.0 million decrease from December 31, 2020.

Civeo reduced its net leverage ratio to 1.49x as of December 31, 2021 from 1.86x as of September 30, 2021.

During 2021, Civeo invested $15.6 million in capital expenditures, up from $10.1 million during 2020. This increase is primarily due to increased Canadian lodge maintenance coupled with increased Canadian pipeline-related capital expenditures.

Full Year 2022 Guidance

For the full year of 2022, Civeo expects revenues of $600.0 million to $615.0 million, EBITDA of $90.0 million to $95.0 million and capital expenditures of $20.0 million to $25.0 million.

Conference Call

Civeo will host a conference call to discuss its fourth quarter 2021 financial results today at 11:00 a.m. Eastern time. This call is being webcast and can be accessed at Civeo's website at www.civeo.com. Participants may also join the conference call by dialing (877) 423-9813 in the United States or (201) 689-8573 internationally and asking for the Civeo call or using the conference ID 13727269#. A replay will be available after the call by dialing (844) 512-2921 in the United States or (412) 317-6671 internationally and using the conference ID 1372769#.

About Civeo

Civeo Corporation is a leading provider of hospitality services with prominent market positions in the Canadian oil sands and the Australian natural resource regions. Civeo offers comprehensive solutions for lodging hundreds or thousands of workers with its long-term and temporary accommodations and provides food services, housekeeping, facility management, laundry, water and wastewater treatment, power generation, communications systems, security and logistics services. Civeo currently operates a total of 27 lodges and villages in Canada, Australia and the U.S., with an aggregate of over 28,000 rooms. Civeo is publicly traded under the symbol CVEO on the New York Stock Exchange. For more information, please visit Civeo's website at www.civeo.com.

Forward Looking Statements

This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements herein include the statements regarding Civeo�s future plans and outlook, including guidance, current trends and liquidity needs, and ability to pay down debt are based on then current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. Such risks and uncertainties include, among other things, risks associated with global health concerns and pandemics, including the COVID-19 pandemic, any increases in or severity of COVID-19 cases (including due to existing or new variants) and the risk that room occupancy may decline if our customers are limited or restricted in the availability of personnel who may become ill or be subjected to quarantine, risks associated with the general nature of the accommodations industry, risks associated with the level of supply and demand for oil, coal, iron ore and other minerals, including the level of activity, spending and developments in the Canadian oil sands, the level of demand for coal and other natural resources from, and investments and opportunities in, Australia, and fluctuations or sharp declines in the current and future prices of oil, natural gas, coal, iron ore and other minerals, risks associated with failure by our customers to reach positive final investment decisions on, or otherwise not complete, projects with respect to which we have been awarded contracts, which may cause those customers to terminate or postpone contracts, risks associated with currency exchange rates, risks associated with the company�s ability to integrate acquisitions, risks associated with labor shortages, risks associated with the development of new projects, including whether such projects will continue in the future, risks associated with the trading price of the company�s common shares, availability and cost of capital, risks associated with general global economic conditions, global weather conditions, natural disasters and security threats and changes to government and environmental regulations, including climate change, and other factors discussed in the �Management�s Discussion and Analysis of Financial Condition and Results of Operations� and �Risk Factors� sections of Civeo�s most recent annual report on Form 10-K and other reports the company may file from time to time with the U.S. Securities and Exchange Commission. Each forward-looking statement contained herein speaks only as of the date of this release. Except as required by law, Civeo expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Information

EBITDA is a non-GAAP financial measure that is defined as net income plus interest, taxes, depreciation and amortization, and Adjusted EBITDA is defined as EBITDA adjusted to exclude certain other unusual or non-operating items. Free cash flow is a non-GAAP financial measure that is defined as net cash flows provided by operating activities less capital expenditures plus proceeds from asset sales.

See �Non-GAAP Reconciliation� below for additional information concerning non-GAAP financial measures, including a reconciliation of the non-GAAP financial information presented in this press release to the most directly comparable financial information presented in accordance with GAAP. Non-GAAP financial information supplements and should be read together with, and is not an alternative or substitute for, the Company�s financial results reported in accordance with GAAP. Because non-GAAP financial information is not standardized, it may not be possible to compare these financial measures with other companies� non-GAAP financial measures.

- Financial Schedules Follow -

Contacts

Carolyn J. Stone

Civeo Corporation

Senior Vice President & Chief Financial Officer

713-510-2400

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