Oil States International, Inc.

Good morning, and welcome to the Oil States International Second Quarter 21 Earnings Conference Call. My name is Zanera, and I'll be the operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. During the question-and-answer session, if you have a question, please press star, then 1 on your touch-tone phone. I will now turn the call over to Ms. Ellen Pennington. Ellen, you may begin.

Thank you, Zanara. Good morning and welcome to Oil State's second quarter 2021 earnings conference call. Our call today will be led by our President and CEO, Cindy Taylor, and Lloyd Hodgick, Oil State's Executive Vice President and Chief Financial Officer. Before we begin, we would like to caution listeners regarding forward-looking statements. To the extent that our remarks today contain information other than historical information, Please note that we are relying on the safe harbor protections afforded by federal law. No one should assume that these forward-looking statements remain valid later in the quarter or beyond. Any such remarks should be weighed in the context of the many factors that affect our business, including those risks disclosed in our Form 10-K along with other SEC filings. This call is being webcast and can be accessed at Oil State's website. A replay of the conference call will be available one and a half hours after the completion of this call and will be available for one month. I will now turn the call over to Cindy.

Thank you, Ellen. Good morning, and thank you for joining our conference call today regarding our second quarter 2021 earnings. Second quarter operating results in each of our segments benefited from the improved commodity price environment. Sequentially, our consolidated revenues and adjusted consolidated EBITDA increased 16% and 64%, respectively. Revenues in our offshore manufactured product segment led the way with a 27% sequential increase, while revenues in our downhole technologies and well site services segments increased 5% and 6%, respectively. We also achieved a 202 basis point increase in adjusted consolidated EBITDA margins resulting from revenue growth coupled with the benefit of cost reductions. Each of our operating segments reported positive EBITDA for the third consecutive quarter. Adjusted consolidated EBITDA for the quarter totaled $10 million, excluding $3 million of restructuring charges primarily associated with our exit of certain lease facilities. Cash flow from operations totaled $22.4 million for the quarter, allowing us to fully pay off our revolver and repurchase a portion of our 1.5% convertible senior notes. We also were very pleased to receive a 2021 Spotlight on New Technology Award from the Offshore Technology Conference, for our Merlin Deep Sea Mineral Riser System. Lloyd will now review our consolidated results of operations and financial position in more detail before I go into a discussion of each of our segments.