OCEANEERING INTERNATIONAL, INC. Certain statements we make in this quarterly report on Form 10-Q are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, without limitation, statements regarding our expectations about:
• free cash flow, which we define as net cash provided by operating
activities less cash paid for purchases of property and equipment, in 2020
and in future periods;
• future demand, order intake and business activity levels;
• the adequacy of our liquidity, cash flows and capital resources;
• the impacts of COVID-19 on the
our business;
• our expectations regarding tax refunds under the CARES Act;
• our projected capital expenditures, unallocated expenses and cash tax
payments for 2020;
• our expectations regarding shares to be repurchased under our share
repurchase plan;
• the implementation of new accounting standards and related policies,
procedures and controls;
• seasonality; and • industry conditions. These forward-looking statements are subject to various risks, uncertainties and assumptions, including those we have referred to under the headings "Risk Factors" and "Cautionary Statement Concerning Forward-Looking Statements" in Part I of our annual report on Form 10-K for the year endedDecember 31, 2019 . Although we believe that the expectations reflected in such forward-looking statements are reasonable, because of the inherent limitations in the forecasting process, as well as the relatively volatile nature of the industries in which we operate, we can give no assurance that those expectations will prove to have been correct. Accordingly, evaluation of our future prospects must be made with caution when relying on forward-looking information.
The following discussion should be read in conjunction with "Management's
Discussion and Analysis of Financial Condition and Results of Operations"
included in our annual report on Form 10-K for the year ended
Recent Developments Affecting Industry Conditions and Our Business The ongoing coronavirus (COVID-19) outbreak, which theWorld Health Organization declared a pandemic and theU.S. Government declared a national emergency inMarch 2020 , has reached more than 200 countries and has continued to be a rapidly evolving situation. The pandemic has resulted in widespread adverse impacts on the global economy and financial markets, and on our employees, customers, suppliers and other parties with whom we have business relations. We have experienced some resulting disruptions to our business operations, as the pandemic has continued to spread through most of our markets. For example, since mid-March, we have had to restrict access to our administrative offices around the world and quarantine personnel and assets as required by various governmental authorities and our own safety protocols. Our first priority in our response to this crisis has been the health and safety of our employees and those of our customers and other business counterparties. We have implemented preventative measures and developed corporate and regional response plans to minimize unnecessary risk of exposure and prevent infection, while supporting our customers' global operations to the best of our ability in the circumstances. We have implemented prevention measures and developed corporate and regional response plans based on guidance received from theWorld Health Organization ,Centers for Disease Control and Prevention , International SOS and our corporate medical advisor. Our goal is to minimize exposure and prevent infection while ensuring the continued support of our customers' operations. We have modified certain business and workforce practices (including those related to employee travel, employee work locations, and cancellation of physical participation in meetings, events and conferences) and implemented new protocols to promote social distancing and enhance sanitary measures in our offices and facilities to conform to government restrictions and best practices encouraged by governmental and regulatory authorities. There is considerable uncertainty regarding the extent to which COVID-19 will continue to spread and the extent and duration of governmental and other measures implemented to try to slow the spread of the virus, such as large-scale travel bans and restrictions, border closures, quarantines, shelter-in-place orders and business and government shutdowns. Restrictions of this nature have caused, and may continue to cause, us, our suppliers and other business counterparties to experience operational delays, delays in the delivery of materials and supplies that 23
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are sourced from around the globe, and have caused, and may continue to cause, milestones or deadlines relating to various projects to be missed.
We have also received various notices from some of our suppliers and other business counterparties, and provided notices to several customers, regarding performance delays resulting from the pandemic. These actions may result in some disputes and could strain our relations with customers and others. If and to the extent these actions were to result in material modifications or cancellations of the underlying contracts, we could experience reductions in our currently reported backlog and in the anticipated conversion of backlog into revenue in future periods. In addition, worsening economic conditions could result in reductions in backlog over time, which would impact our future financial performance. One of the impacts of the pandemic has been a significant reduction in global demand for oil and natural gas. For example, global demand for oil has dropped precipitously by approximately 14 million barrels per day since mid-February. This significant decline in demand has been met with a sharp decline in oil prices following the announcement of price reductions and production increases inMarch 2020 by members of theOrganization of Petroleum Exporting Countries ("OPEC"), and other foreign, oil-exporting countries. The resulting supply/demand imbalance is having disruptive impacts on the oil and natural gas exploration and production industry and on other industries that serve exploration and production companies. These industry conditions, coupled with those resulting from the COVID-19 pandemic, are expected to lead to significant global economic contraction generally and in our industry in particular. We expect to see continued volatility in oil and natural gas prices for the foreseeable future, which could, over the long term, adversely impact our business. A significant decline in exploration and development activities and related spending by our customers, whether due to decreases in demand or prices for oil and natural gas or otherwise, would have a material adverse effect on our business, cash flows, liquidity, financial condition and results of operations. As of the date of this report, our efforts to respond to the challenges presented by the conditions described above and minimize the impacts to our business have yielded results as we have largely been able to maintain operational continuity on a worldwide basis. Our manufacturing, services operations, and other operating facilities have remained operational and our vessels have continued to perform. We have moved quickly to reduce costs, increase operational efficiencies and lower our capital spending. In addition, as ofMarch 31, 2020 , we had$307 million of cash on our balance sheet and our revolving credit facility was undrawn and remains available to support our operations. We have not required any funding under any COVID-19-related,U.S. federal or other governmental programs to support our operations, and we do not expect to have to utilize any such funding. We have experienced some increased absenteeism in our hourly workforce, but, so far, we have not experienced any resulting problems that we have not been able to manage. We are continuing to address concerns to protect the health and safety of our employees and those of our customers and other business counterparties, and this includes changes to comply with health-related guidelines as they are modified and supplemented. In ourMarch 31, 2020 press release, we announced that we had withdrawn our 2020 financial guidance. We are not providing operating results or EBITDA guidance for the second quarter and full year of 2020, due to the continuing, significant uncertainty impacting the majority of our businesses. Many of the markets we serve are being profoundly affected by the effects of and associated responses to COVID-19, as well as the significant reductions in customer spending as a result of the lower crude oil price environment. We cannot predict the full impact that COVID-19 or the significant disruption and volatility currently being experienced in the oil and natural gas markets will have on our business, cash flows, liquidity, financial condition and results of operations at this time, due to numerous uncertainties. The ultimate impacts will depend on future developments beyond our control, which are highly uncertain and cannot be predicted, including, among others, the ultimate geographic spread of the virus, the consequences of governmental and other measures designed to prevent the spread of the virus, the development of effective treatments, the duration of the outbreak, actions taken by members ofOPEC and other foreign oil-exporting countries, governmental authorities, customers, suppliers and other thirds parties, workforce availability, and the timing and extent to which normal economic and operating conditions resume. For additional discussion regarding risks associated with the COVID-19 pandemic, see Item 1A "Risk Factors" in this report. 24
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Executive Overview
Our diluted earnings (loss) per share for the three months endedMarch 31, 2020 was$(3.71) , as compared to$(0.25) for the corresponding period of the prior year. Our operating results adjusted for asset impairments and write-offs exceeded our expectations. The key factor in achieving these results was better-than-anticipated performance within our energy-focused businesses, which included the benefit from cost reduction measures implemented during the fourth quarter of 2019 and the first quarter of 2020. For the second quarter and full year of 2020, we are not providing operating results or EBITDA guidance due to our businesses being impacted by the effects of COVID-19 and associated responses and customer spending reductions occurring as a result of the substantial reduction in crude oil demand and the lower oil price environment. We maintain our guidance that Unallocated Expenses are forecast to be in the high-$20 million range per quarter. We are further revising our guidance by lowering our annual capital expenditures to be in the range of$45 million to$65 million . OnMarch 27, 2020 , theU.S. Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") was signed into law in theU.S. In accordance with the recently established rules and procedures under the CARES Act, we expect to file a carryback claim for theU.S. net operating loss generated in 2019 to tax year 2014. We also intend to file an amended 2013 income tax return utilizing foreign tax credits released from the 2014 income tax return. As a result, we expect to receive refunds of approximately$16 million and$18 million related to the 2014 and 2013 tax years, respectively. These refunds are classified as income taxes receivable in the consolidated balance sheet as ofMarch 31, 2020 . We also realized a non-cash tax benefit of$9.9 million due to the carryback provision of the CARES Act. Prior to enactment of the CARES Act, such net operating losses could only be carried forward. As a result of these actions and other factors, any discussion of an estimated effective tax rate would not be meaningful. We estimate our 2020 net income tax payments to be$15 million , primarily due to taxes incurred in countries that impose tax on the basis of in-country revenue, without regard to the profitability of such operations. Although we are not able to currently provide operating or EBITDA guidance, we continue to believe that we will generate positive free cash flow during 2020. This belief is based on the following: actions we have taken to achieve cost reductions; reduced capital spending levels; lower cash taxes; our expectation of$16 million to$34 million in CARES Act tax refunds; and cash from working capital for the remainder of the year.
Results of Operations
We operate in five business segments. The segments are contained within two
businesses - services and products provided primarily to the offshore energy
industry ("Energy Services and Products") and services and products provided to
non-energy industries ("Advanced Technologies"). Our Unallocated Expenses are
those not associated with a specific business segment.
Consolidated revenue and profitability information are as follows:
Three Months Ended
(dollars in thousands) Mar 31, 2020 Mar 31, 2019 Dec 31, 2019
Revenue $ 536,668 $ 493,886 $ 560,810
Gross Margin 46,752 27,587 (20,387 )
Gross Margin % 9 % 6 % (4 )%
Operating Income (Loss) (380,757 ) (21,714 ) (254,170 )
Operating Income (Loss) % (71 )% (4 )% (45 )%
We generate a material amount of our consolidated revenue from contracts for
services in the U.S. Gulf of Mexico in our Subsea Projects segment, which is
usually more active in the second and third quarters, as compared to the rest of
the year. The European operations of our Asset Integrity segment are also
seasonally more active in the second and third quarters. Revenue in our ROV
segment is subject to seasonal variations in demand, with our first quarter
generally being the low quarter of the year. The level of our ROV seasonality
depends on the number of ROVs we have engaged in vessel-based subsea
infrastructure inspection, maintenance, repair and installation,
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which is more seasonal than drilling support. Revenue in each of our Subsea Products and Advanced Technologies segments generally has not been seasonal.
We had operating losses of$381 million ,$22 million and$254 million in the three months endedMarch 31, 2020 ,March 31, 2019 andDecember 31, 2019 , respectively. Included in our operating losses for the three months endedMarch 31, 2020 andDecember 31, 2019 , were charges of$386 million and$252 million , respectively, primarily due to market conditions requiring impairment of certain of our assets along with other costs we recognized as we adapted our geographic footprint and staffing levels to the conditions of the markets we serve. Charges for the three months endedMarch 31, 2020 andDecember 31, 2019 are summarized as follows: For the three
months ended
Remotely
Operated Subsea Subsea Asset Advanced Unallocated
(in thousands) Vehicles Products Projects Integrity Tech. Expenses Total
Charges for the effects
of:
Long-lived assets
impairments $ - $ 54,859 $ 7,689 $ - $ 6,215 $ - $ 68,763
Long-lived assets
write-offs - - 7,328 - - - 7,328
Goodwill impairment - 51,302 129,562 110,753 11,388 - 303,005
Other 713 1,668 1,480 1,694 795 280 6,630
Total charges $ 713 $ 107,829 $ 146,059 $ 112,447 $ 18,398 $ 280 $ 385,726
For the
three months ended
Remotely
Operated Subsea Subsea Unallocated
(in thousands) Vehicles Products Projects Asset Integrity Advanced Tech. Expenses TotalCharges for the effects of: Long-lived assets impairments $ - $ -$ 142,615 $ 16,738 $ - $ -$ 159,353 Long-lived assets write-offs 5,697 18,757 6,091 14,108 - - 44,653 Inventory write-downs 15,343 3,567 1,586 - 789 - 21,285 Goodwill impairment - - - 14,713 - - 14,713 Other 2,297 2,650 2,851 3,082 815 56 11,751 Total charges$ 23,337 $ 24,974 $ 153,143 $ 48,641 $ 1,604 $ 56$ 251,755 Energy Services and Products The primary focus of our Energy Services and Products business over the last several years has been toward leveraging our asset base and capabilities for providing services and products for offshore energy operations and subsea completions, inclusive of our customers' operating expenses and the offshore renewable energy market. The following table sets forth the revenue, gross margin and operating income (loss) for our Energy Services and Products business segments for the periods indicated. In the ROV section of the table that follows, "Days available" includes all days from the first day that an ROV is placed into service until the ROV is retired. All days during this period are considered available days, including periods when an ROV is undergoing maintenance or repairs. Our ROVs do not have scheduled maintenance or repair that requires significant time when the ROVs are not available for utilization. 26
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Three Months Ended
(dollars in thousands) Mar 31, 2020 Mar 31, 2019 Dec 31, 2019
Remotely Operated Vehicles
Revenue $ 111,780 $ 100,346 $ 116,020
Gross Margin 18,112 9,421 (7,728 )
Operating Income (Loss) 9,066 1,418 (18,660 )
Operating Income (Loss) % 8 % 1 % (16 )%
Days Available 22,750 24,506 25,576
Days Utilized 14,853 12,942 14,836
Utilization 65 % 53 % 58 %
Subsea Products
Revenue 194,838 128,844 183,659
Gross Margin 28,639 12,315 4,527
Operating Income (Loss) (91,858 ) (476 ) (10,325 )
Operating Income (Loss) % (47 )% - % (6 )%
Backlog at End of Period 528,000 464,000 630,000
Subsea Projects
Revenue 61,455 89,728 86,728
Gross Margin (2,114 ) 9,033 1,546
Operating Income (Loss) (145,290 ) 2,892 (148,075 )
Operating Income (Loss) % (236 )% 3 % (171 )%
Asset Integrity
Revenue 59,132 60,689 61,835
Gross Margin 8,729 6,272 (6,867 )
Operating Income (Loss) (109,441 ) (713 ) (48,919 )
Operating Income (Loss) % (185 )% (1 )% (79 )%
Total Energy Services and Products
Revenue $ 427,205 $ 379,607
Gross Margin 53,366 37,041 (8,522 )
Operating Income (Loss) (337,523 ) 3,121 (225,979 )
Operating Income (Loss) % (79 )% 1 % (50 )%
In general, our energy-related business focuses on supplying services and
products to the offshore energy industry. Since the downturn in oil prices in
mid-2014, we have experienced lower activity levels and reduced pricing. In
2019, oil prices stabilized, resulting in increased demand and higher
utilization for our energy-related businesses, with slightly improved pricing
through the first quarter of 2020. Looking ahead, the adverse impacts of
COVID-19 and the resulting supply and demand imbalance along with significantly
lower crude oil prices are resulting in lower levels of activity and
profitability. As we expect a recovery will take time to restore profitability
and generate satisfactory returns, we are reviewing our operating model's cost
structure and aggressively implementing costs reductions.
ROV. We believe we are the world's largest provider of ROV services and,
generally, this business segment has been the largest contributor to our Energy
Services and Products business operating income. Our ROV segment revenue
reflects the utilization percentages, fleet sizes and average pricing in the
respective periods.
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ROV operating income for the first quarter of 2020 increased$7.6 million compared to the corresponding period of the prior year as a result of increased days on hire. ROV operating income was higher for the three months endedMarch 31, 2020 when compared to the immediately preceding quarter, which included$23 million of charges for write-downs and write-offs of certain equipment, intangibles, inventory and other expenses. Days on hire as compared to the preceding quarter were relatively flat. Average ROV revenue per day on hire declined 4% year-over-year as a result of changes in geographic mix. However, this decline was more than offset by lower costs per day resulting in improved operating income. Fleet utilization increased to 65% during the first quarter from 53% in the corresponding period of the prior year. We added one new ROV to our fleet during the three months endedMarch 31, 2020 and retired one, resulting in a total of 250 ROVs in our ROV fleet as ofMarch 31, 2020 . Subsea Products. Our Subsea Products segment consists of two business units: (1) Manufactured Products; and (2) Service and Rental. Manufactured Products includes production control umbilicals and specialty subsea hardware, while Service and Rental includes tooling, subsea work systems and installation and workover control systems. The following table presents revenue from Manufactured Products and Service and Rental, as their respective percentages of total Subsea Products revenue: Three Months Ended Mar 31, 2020 Mar 31, 2019 Dec 31, 2019 Manufactured Products 74 % 51 % 72 % Service and Rental 26 % 49 % 28 % Our Subsea Products operating results decreased in the first quarter of 2020 as compared to the corresponding period of the prior year, primarily as a result of charges for the impairment and write-offs of goodwill, certain equipment, intangibles and other expenses of$108 million . Subsea Products operating results also were lower for the three months endedMarch 31, 2020 when compared to the immediately preceding quarter, which included$25 million of charges related to impairments and write-offs of assets, inventory and other expenses. Exclusive of charges, operating results increased when compared to both the corresponding period of the prior year and preceding quarter primarily due to increased activity in subsea umbilical and hardware throughput, as well as improved margins in our service and rental business. Our Subsea Products backlog was$528 million as ofMarch 31, 2020 , compared to$630 million as ofDecember 31, 2019 . The backlog decrease was attributable to a significant amount of manufacturing activity being performed at our facilities combined with lower than planned order intake as a result of the negative market impacts from COVID-19 and the recent decline in crude oil prices. The higher throughput and lower order intake resulted in a 0.5 book-to-bill ratio for the first quarter of 2020. Our book-to-bill ratio for the trailing 12 months was 1.1. Subsea Projects. Our Subsea Projects operating results decreased in the three months endedMarch 31, 2020 , compared to the corresponding period of the prior year, due to the impairments and write-offs referred to below, as well as reduced amounts ofGulf of Mexico diving and construction work. Our Subsea Projects revenue and operating results were lower in the three-month period endedMarch 31, 2020 as compared to the immediately preceding quarter, as a result of as a result of lower seasonal vessel and survey activity. The three months endedMarch 31, 2020 andDecember 31, 2019 results included charges of$146 million and$153 million , respectively, for goodwill impairment, vessel and intangible impairments, write-downs and write-offs of certain equipment and inventory, and other expenses. Asset Integrity. Asset Integrity's operating results for the three month period endedMarch 31, 2020 , compared to the corresponding period of the prior year and the immediately preceding quarter, were lower due to charges related to goodwill impairment, asset impairments, write-downs and write-offs of certain equipment, intangible assets and inventory, and other expenses of$112 million and$49 million in the three months endedMarch 31, 2020 andDecember 31, 2019 , respectively. Exclusive of these charges, operating results were higher as compared to the corresponding period of the prior year and the immediately preceding quarter due to cost reductions instituted in the fourth quarter of 2019. 28
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Advanced Technologies Our Advanced Technologies segment consists of two business units: (1) government; and (2) commercial. Government services and products include engineering and related manufacturing in defense and space exploration activities. Our commercial business unit offers turnkey solutions that include program management, engineering design, fabrication/assembly and installation to the commercial theme park industry and mobile robotics solutions, including automated guided vehicle technology to a variety of industries.
Revenue, gross margin and operating income information for our Advanced Technologies segment are as follows:
Three Months Ended
(dollars in thousands) Mar 31, 2020 Mar 31, 2019 Dec 31, 2019
Revenue $ 109,463 $ 114,279 $ 112,568
Gross Margin 13,428 15,248 12,354
Operating Income (Loss) (10,585 ) 9,599 5,270
Operating Income (Loss) % (10 )% 8 % 5 %
Advanced Technologies operating results for the three-month period ended
March 31, 2020 were lower when compared to the corresponding period of the prior
year and the immediately preceding quarter primarily as a result of charges of
$18 million for our commercial business unit in the first quarter of 2020 for
goodwill impairment, asset impairments, write-downs of certain equipment and
other expenses. Advanced Technologies operating results for the three-month
period ended December 31, 2019 included $1.6 million of charges relating to
inventory write-downs and other expenses. Exclusive of charges, operating
results decreased on lower levels of revenue in the first quarter of 2020 when
compared to the corresponding period of the prior year and the preceding quarter
due to customer operational project delays and the adverse impacts of COVID-19,
combined with higher costs on certain projects within our entertainment
business.
The following table presents revenue from government and commercial, as their respective percentages of total Advanced Technologies revenue:
Three Months Ended
Mar 31, 2020 Mar 31, 2019 Dec 31, 2019
Government 83 % 71 % 76 %
Commercial 17 % 29 % 24 %
Unallocated Expenses
Our Unallocated Expenses, (i.e., those not associated with a specific business
segment), within gross margin consist of expenses related to our incentive and
deferred compensation plans, including restricted stock units, performance units
and bonuses, as well as other general expenses. Our Unallocated Expenses within
operating expense consist of those expenses within gross margin plus general and
administrative expenses related to corporate functions.
The following table sets forth our Unallocated Expenses for the periods
indicated:
Three Months Ended
(dollars in thousands) Mar 31, 2020 Mar 31, 2019 Dec 31, 2019
Gross margin expenses $ (20,042 ) $ (24,702 ) (24,219 )
% of revenue 4 % 5 % 4 %
Operating expenses (32,649 ) (34,434 ) (33,461 )
Operating expenses % of revenue 6 % 7 % 6 %
Our Unallocated Expenses for the three months endedMarch 31, 2020 were lower compared to the corresponding period of the prior year and the immediately preceding quarter, as performance-based compensation expenses were reduced based on our expected level of results relative to our plan targets. 29
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The following table sets forth our significant financial statement items below the income (loss) from operations line.
Three Months Ended
(in thousands) Mar 31, 2020 Mar 31, 2019 Dec 31, 2019
Interest income $ 1,277 $ 2,604 $ 1,352
Interest expense, net of amounts capitalized (12,462 ) (9,424 ) (11,706 )
Equity in income (losses) of unconsolidated
affiliates 1,197 (164 ) 941
Other income (expense), net (7,128 ) 719 (3,687 )
Provision (benefit) for income taxes (30,275 ) (3,152 ) (4,358 )
In addition to interest on borrowings, interest expense includes amortization of loan costs, fees for lender commitments under our revolving credit agreement and fees for standby letters of credit and bank guarantees that banks issue on our behalf for performance bonds, bid bonds and self-insurance requirements. Foreign currency transaction gains and losses are the principal component of other income (expense), net. In the three-month periods endedMarch 31, 2020 and 2019, we incurred foreign currency transaction gains (losses) of$(7.1) million and$0.6 million , respectively. The currency losses in 2020 primarily related to declining exchange rates for the Angolan kwanza and the Brazilian real relative to theU.S. dollar. We did not incur any significant currency transaction losses in any one currency in the three-month period endedMarch 31, 2019 . We could incur further foreign currency exchange losses inAngola andBrazil if further currency devaluations occur. In the three-month period endedMarch 31, 2020 , we provided for income taxes based on our earnings for the period using: (1) earnings and other factors that would affect the tax provision for the period; and (2) the operations of foreign branches and subsidiaries that are subject to local income and withholding taxes. Factors that affect our tax rate include our profitability levels in general and the geographic mix in the sources of our results. The effective tax rate for the three months endedMarch 31, 2020 was different than the federal statutory rate of 21%, primarily due the enactment of the CARES Act, the geographic mix of operating revenue and results, and changes in uncertain tax positions and other discrete items. We continue to make an assertion to indefinitely reinvest the unrepatriated earnings of any foreign subsidiary that would incur incremental tax consequences upon the distribution of such earnings. Therefore, we do not believe a discussion of the effective tax rate is meaningful. In the three-month period endedMarch 31, 2020 , we recognized a tax benefit of$42.2 million from discrete items, primarily related to an$33.8 million benefit related to the CARES Act and$9.7 million of additional uncertain tax positions, partially offset by$1.0 million related to share-based compensation and$0.3 million associated with various other issues. In the three-month period endedMarch 31, 2019 , we recognized additional tax expense of$1.4 million from discrete items, primarily related to share-based compensation and valuation allowances. Our 2020 income tax payments, net of tax refunds, are anticipated to be approximately$15 million . Liquidity and Capital Resources As ofMarch 31, 2020 , we had working capital of$666 million , including$307 million of cash and cash equivalents. Additionally, Amendment No. 4 to the Credit Agreement (as defined below) provides for a$500 million revolving credit facility untilOctober 25, 2021 and thereafter$450 million untilJanuary 25, 2023 with a group of banks. We consider our liquidity, cash flows and capital resources to be adequate to support our existing operations and capital commitments. However, given the uncertainty in the rapidly changing market and economic conditions related to the COVID-19 outbreak, we will continue to evaluate the nature and extent of the impact to our business and financial position. 30
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Cash flows for the three months endedMarch 31, 2020 and 2019 are summarized as follows: Three Months Ended (in thousands) Mar 31, 2020 Mar 31, 2019 Changes in Cash:
Net Cash Provided by Operating Activities$ (32,150 ) $ 19,124 Net Cash Used in Investing Activities (26,706 ) (29,914 ) Net Cash Used in Financing Activities (1,668 ) (2,338 ) Effect of exchange rates on cash (5,671 ) 632 Net Increase (Decrease) in Cash and Cash Equivalents$ (66,195 ) $ (12,496 ) Operating activities
Our primary sources and uses of cash flows from operating activities for the
three months ended
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