Oil States International, Inc. (OIS)

[Timothy Smith]

@Mike - I remain very optimistic.

From the earnings call:

Cindy Taylor - President & CEO
Thank you, Patricia. Good morning to all of you and thanks for joining our call today. 2012 marks a second consecutive record year with earnings growing 39% over that reported in 2011. We set many records across the company and in each division.

In the accommodation segment, we reported seventh consecutive year of record earnings and organically expanded our room count by 14% year-over-year. In offshore products, we reported a second consecutive year of record earnings coupled with strong year-end backlog levels. In our completion services business, we performed a record number of completion jobs and reported our second consecutive year of record earnings. In our tubular services segment, we shipped a record amount of OCTG tonnage, up 23% year-over-year. Overall, 2012 was a year of many achievements and I am pleased with our ability to deliver these results in a year that offered some challenges, particularly as the year progressed.

The fourth quarter slowed somewhat for our businesses which are driven by the North American rig count and our well site services segment revenue and EBITDA were down 5% and 9% respectively due to the 5% sequential rig count decline in the fourth quarter. Our US accommodation also declined sequentially while our tubular services segment was more resilient due to deepwater OCTG sales.

Our offshore product segment posted record results in the fourth quarter of 2012, but came in light relative to our quarterly guidance due to sales mix and year-end inventory adjustments. Backlog in our offshore product segment remained at strong levels totaling $561 million at December 31, 2012, but declined $36 million from September 30, 2012 levels.

Given the active bidding and quoting activity that we see currently particularly for subsea pipeline and floating production facility product, the outlook for offshore products in the coming year is robust.

At this time, Bradley will take you through more details of our consolidated results and financial position and then I will conclude our prepared remarks with the discussion of each of our segment and will give you our thoughts on the current market outlook.