Tidewater Reports First Quarter Results For Fiscal 2016

Aug 10, 2015, 16:36 ET from Tidewater Inc.

NEW ORLEANS, Aug. 10, 2015 /PRNewswire/ -- Tidewater Inc. (NYSE: TDW) announced today a first quarter net loss for the period ended June 30, 2015, of $15.1 million, or $0.32 per common share, on revenues of $304.8 million. For the same quarter last year, net earnings were $43.7 million, or $0.88 per common share, on revenues of $385.7 million. The immediately preceding quarter ended March 31, 2015, had a net loss of $9.1 million, or $0.19 per common share, on revenues of $324.8 million. Included in the net loss for the quarter ended June 30, 2015 were the following:

  • $15.0 million ($14.0 million after-tax, or $0.30 per share) in non-cash asset impairment charges that is included in "Gain/loss on asset dispositions, net," and resulted from impairment reviews undertaken during the quarter, including write-offs of unreimbursed and/or potentially unrecoverable costs related to cancelled vessel construction contracts and a vessel construction project that is the subject of an on-going arbitration proceeding.
  • $10.2 million ($9.5 million after-tax, or $0.20 per share) of total foreign exchange losses, $6.1 million of which is included in Equity in net earnings/(losses) of unconsolidated companies and related to our Angola joint venture, Sonatide.

Income tax expense of $10.3 million for the quarter ended June 30, 2015 (and the resulting effective income tax rate) largely reflects tax liabilities in certain jurisdictions that levy taxes on bases other than pre-tax profitability (so called "deemed profit" regimes).

Included in the net loss of the preceding quarter ended March 31, 2015 were charges resulting from cost reduction initiatives related to a more challenging business environment since the precipitous decline in crude oil prices that began in the second half of fiscal 2015, as well as period end asset impairment reviews and assessment of realization of deferred tax assets:

  • A $4.1 million ($3.3 million after-tax, or $0.07 per share) restructuring charge related to severance and other termination costs resulting from right-sizing efforts during the March 2015 quarter.
  • $6.4 million ($5.1 million after-tax, or $0.11 per share) of total charges related to stacked vessel and other asset impairment reviews undertaken during the March 2015 quarter, which is included in "Gain/(loss) on asset dispositions, net".
  • A $23.8 million ($23.8 million after-tax, or $0.51 per share) non-cash adjustment related to the valuation of deferred tax assets.

As previously announced, Tidewater will hold a conference call to discuss June quarterly earnings on Tuesday, August 11, 2015, at 10:00 a.m. Central time. Investors and interested parties may listen to the teleconference via telephone by calling 1-888-771-4371 if calling from the U.S. or Canada (1-847-585-4405 if calling from outside the U.S.) and ask for the "Tidewater" call just prior to the scheduled start.  A replay of the conference call will be available beginning at 12:00 p.m. Central time on August 11, 2015, and will continue until 11:59 p.m. Central time on August 13, 2015. To hear the replay, call 1-888-843-7419 (1-630-652-3042 if calling from outside the U.S.).  The conference call ID number is 40293268.

A simultaneous webcast of the conference call will be available online at the Tidewater Inc. website, (http://www.tdw.com).  The online replay will be available until September 11, 2015.

The conference call will contain forward-looking statements in addition to statements of historical fact. The actual achievement of any forecasted results or the unfolding of future economic or business developments in a way anticipated or projected by the Company involve numerous risks and uncertainties that may cause the Company's actual performance to be materially different from that stated or implied in the forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the oilfield service industry and other factors discussed within the "Risk Factors" section of Tidewater's recent Forms 10-Q and 10-K.

Tidewater is the leading provider of Offshore Service Vessels (OSVs) to the global energy industry.                           

Note: all per-share amounts are stated on a diluted basis.

Financial information is displayed on the next page.

 

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

(In thousands, except share and per share data)

Three Months Ended

June 30,

2015

2014

Revenues:

   Vessel revenues

$

298,313

381,510

   Other operating revenues

6,461

4,167

304,774

385,677

Costs and expenses:

   Vessel operating costs

179,281

217,244

   Costs of other operating revenues

5,744

4,661

   General and administrative

43,953

51,060

   Vessel operating leases

8,443

6,540

   Depreciation and amortization

45,657

43,111

   (Gain)/loss on asset dispositions, net

7,607

(2,943)

290,685

319,673

Operating income

14,089

66,004

Other income (expenses):

   Foreign exchange loss

(4,133)

(1,289)

   Equity in net earnings/(losses) of unconsolidated companies

(2,441)

5,283

   Interest income and other, net

790

622

   Interest and other debt costs, net

(13,182)

(13,129)

(18,966)

(8,513)

Earnings (loss) before income taxes

(4,877)

57,491

Income tax expense

10,287

13,792

Net earnings (loss)

(15,164)

43,699

   Less: Net earnings (losses) attributable to noncontrolling interests

(112)

26

Net earnings (loss) attributable to Tidewater Inc.

$

(15,052)

43,673

Basic earnings (loss) attributable to Tidewater Inc. per common share

$

(0.32)

0.88

Diluted earnings (loss) attributable to Tidewater Inc. per common share

$

(0.32)

0.88

Weighted average common shares outstanding

46,981,747

49,580,038

Dilutive effect of stock options and restricted stock

---

282,986

Adjusted weighted average common shares

46,981,747

49,863,024

 

TIDEWATER INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and par value data)                                                                                                

June 30,

March 31,

ASSETS

2015

2015

Current assets:

    Cash and cash equivalents

$

102,984

78,568

    Trade and other receivables, net

262,762

303,096

    Due from affiliate

385,452

420,365

    Marine operating supplies

43,255

49,005

    Other current assets

40,359

17,781

           Total current assets

834,812

868,815

Investments in, at equity, and advances to unconsolidated companies

62,701

65,844

Properties and equipment:

   Vessels and related equipment

4,714,193

4,717,132

   Other properties and equipment

119,684

119,879

4,833,877

4,837,011

   Less accumulated depreciation and amortization

1,114,671

1,090,704

           Net properties and equipment

3,719,206

3,746,307

Other assets

96,765

75,196

                    Total assets

$

4,713,484

4,756,162

LIABILITIES AND EQUITY

Current liabilities:

   Accounts payable

$

58,659

54,011

   Accrued expenses

118,162

146,255

   Due to affiliate

192,046

185,657

   Accrued property and liability losses

3,460

3,669

   Current portion of long-term debt

45,420

10,181

   Other current liabilities

74,483

82,461

          Total current liabilities

492,230

482,234

Long-term debt

1,498,109

1,524,295

Deferred income taxes

25,618

23,276

Accrued property and liability losses

9,727

10,534

Other liabilities and deferred credits

230,632

235,108

Commitments and Contingencies

Equity:

   Common stock of $0.10 par value, 125,000,000 shares

            authorized, issued 46,965,458 shares at June 30, 2015

            and 47,029,359 shares at March 31, 2015

4,696

4,703

   Additional paid-in capital

162,707

159,940

   Retained earnings

2,303,831

2,330,223

   Accumulated other comprehensive loss           

(20,181)

(20,378)

          Total stockholders' equity

2,451,053

2,474,488

   Noncontrolling Interests

6,115

6,227

          Total equity

2,457,168

2,480,715

                  Total liabilities and equity

$

4,713,484

4,756,162

 

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In thousands)

Three Months Ended

June 30,

2015

2014

Net earnings (loss)

$

(15,164)

43,699

Other comprehensive income/(loss):

   Unrealized gains (losses) on available for sale securities,

         net of tax of $0 and $55

(52)

101

   Amortization of loss on derivative contract,

         net of tax of $0 and $63

179

116

   Change in other benefit plan minimum liability,

         net of tax of $0 and $70

70

131

Total comprehensive income (loss)

$

(14,967)

44,047

 

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

Three Months Ended

June 30,

2015

2014

Operating activities:

   Net earnings (loss)

$

(15,164)

43,699

   Adjustments to reconcile net earnings (loss) to net cash

       provided by operating activities:

          Depreciation and amortization

45,657

43,111

          Provision for deferred income taxes

64

2,432

          (Gain) loss on asset dispositions, net

7,607

(2,943)

          Equity in earnings (losses) of unconsolidated companies, less dividends

3,143

(3,998)

          Compensation expense - stock-based

3,219

5,341

          Changes in assets and liabilities, net:

             Trade and other receivables

40,280

(39,044)

             Changes in due to/from affiliate, net

41,302

31,552

             Marine operating supplies

5,250

(5,822)

             Other current assets

(10,578)

(12,534)

             Accounts payable

4,227

(5,360)

             Accrued expenses

(28,772)

(25,590)

             Accrued property and liability losses

(209)

(367)

             Other current liabilities

(6,811)

(616)

             Other liabilities and deferred credits

708

817

             Other, net

2,774

267

          Net cash provided by operating activities

92,697

30,945

Cash flows from investing activities:

   Proceeds from sales of assets

5,866

3,754

   Proceeds from sale/leaseback of assets

---

13,400

   Additions to properties and equipment

(92,598)

(39,874)

   Refunds from cancelled vessel construction contracts

24,190

---

   Other

(690)

3

          Net cash used in investing activities

(63,232)

(22,717)

Cash flows from financing activities:

   Debt issuance costs

(936)

---

   Principal payments on long-term debt

(23,662)

(3,959)

   Debt borrowings

31,338

---

   Proceeds from exercise of stock options

---

994

   Cash dividends

(11,789)

(12,520)

   Other

---

349

          Net cash used in financing activities

(5,049)

(15,136)

Net change in cash and cash equivalents

24,416

(6,908)

Cash and cash equivalents at beginning of period

78,568

60,359

Cash and cash equivalents at end of period

$

102,984

53,451

Supplemental disclosure of cash flow information:

   Cash paid during the period for:

          Interest, net of amounts capitalized

$

22,430

24,385

          Income taxes

$

17,441

11,170

   Supplemental disclosure of non-cash investing activities:

          Additions to properties and equipment

$

421

5,236

 

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY   

(Unaudited)

(In thousands)

Common stock

Additional paid-in capital

Retained earnings

Accumulated other comprehensive loss

Non controlling interest

Total

Balance at March 31, 2015

$

4,703

159,940

2,330,223

(20,378)

6,227

2,480,715

Total comprehensive loss

---

---

(15,052)

197

(112)

(14,967)

Exercise of stock options

---

186

---

---

---

186

Cash dividends declared ($.25 per share)

---

---

(11,340)

---

---

(11,340)

Amortization of restricted stock units

---

2,456

---

---

---

2,456

Amortization/cancellation of restricted stock

(7)

125

---

---

---

118

Balance at June 30, 2015

$

4,696

162,707

2,303,831

(20,181)

6,115

2,457,168

Balance at March 31, 2014

$

4,973

142,381

2,544,255

(12,225)

5,987

2,685,371

Total comprehensive income

---

---

43,673

348

26

44,047

Exercise of stock options

3

997

---

---

---

1,000

Cash dividends declared ($.25 per share)

---

---

(12,589)

---

---

(12,589)

Amortization of restricted stock units

---

992

---

---

---

992

Amortization/cancellation of restricted stock

(4)

3,846

---

---

---

3,842

Cash received from noncontrolling interests

---

---

---

---

449

449

Cash paid to noncontrolling interests

---

---

---

---

(50)

(50)

Balance at June 30, 2014

$

4,972

148,216

2,575,339

(11,877)

6,412

2,723,062

 

The company's vessel revenues and vessel operating costs and the related percentage of total vessel revenues for the quarters ended June 30, 2015 and 2014 and for the quarter ended March 31, 2015, were as follows:

Quarter

Quarter Ended

Ended

June 30,

March 31,

(In thousands)

2015

%

2014

%

2015

%

Vessel revenues:

  Americas

$

114,172

38%

119,983

31%

117,149

37%

  Asia/Pacific

27,937

9%

40,249

11%

29,536

9%

  Middle East/North Africa

47,266

16%

55,539

15%

45,486

14%

  Sub-Saharan Africa/ Europe

108,938

37%

165,739

43%

125,599

40%

    Total vessel revenues

$

298,313

100%

381,510

100%

317,770

100%

Vessel operating costs:

  Crew costs

$

92,288

31%

111,285

29%

98,045

31%

  Repair and maintenance

37,254

12%

47,732

13%

40,307

13%

  Insurance and loss reserves

5,375

2%

5,394

1%

7,213

2%

  Fuel, lube and supplies

18,110

6%

22,369

6%

18,372

6%

  Other

26,254

9%

30,464

8%

30,003

9%

      Total vessel operating costs

179,281

60%

217,244

57%

193,940

61%

Vessel operating margin (A)

$

119,032

40%

164,266

43%

123,830

39%

 

Note (A): The following table reconciles vessel operating margin as presented above to operating profit for the quarters ended June 30, 2015 and 2014 and for the quarter ended March 31, 2015:

Quarter

Quarter Ended

Ended

June 30,

March 31,

(In thousands)

2015

2014

2015

Vessel operating margin

$

119,032

164,266

123,830

General and administrative – vessel operations

(32,800)

(37,669)

(34,190)

Vessel operating leases

(8,443)

(6,540)

(8,075)

Depreciation and amortization – vessel operations

(42,749)

(41,425)

(42,179)

Vessel operating profit

$

35,040

78,632

39,386

 

The company's other operating loss for the quarters ended June 30, 2015 and 2014 and for the quarter ended March 31, 2015, consists of the following:

Quarter

Quarter Ended

Ended

June 30,

March 31,

(In thousands)

2015

2014

2015

Other operating revenues

$

6,461

4,167

6,992

Costs of other operating revenues

(5,744)

(4,661)

(6,889)

General and administrative – other operating activities

(1,139)

(1,059)

(1,226)

Depreciation – other operating activities

(1,414)

(870)

(1,351)

Other operating loss

$

(1,836)

(2,423)

(2,474)

 

The company's operating income and other components of earnings before income taxes, and its related percentage of total revenues for the quarters ended June 30, 2015 and 2014 and for the quarter ended March 31, 2015, were as follows:

Quarter 

Quarter Ended

Ended

June 30,

March 31,

(In thousands)

2015

%

2014

%

2015

%

Vessel operating profit/(loss):

  Americas

$

23,839

8%

30,208

8%

22,218

7%

  Asia/Pacific

1,750

1%

(971)

(1%)

2,477

1%

  Middle East/North Africa

8,160

3%

11,793

3%

5,690

1%

  Sub-Saharan Africa/ Europe

1,291

<1%

37,602

10%

9,001

3%

35,040

12%

78,632

20%

39,386

12%

Other operating loss

(1,836)

(1%)

(2,423)

(1%)

(2,474)

(1%)

33,204

11%

76,209

19%

36,912

11%

   Corporate general and administrative expenses

(10,014)

(3%)

(12,332)

(3%)

(9,939)

(3%)

   Corporate depreciation

(1,494)

(1%)

(816)

(<1%)

(1,524)

(<1%)

Corporate expenses

(11,508)

(4%)

(13,148)

(3%)

(11,463)

(3%)

Gain/(loss) on asset dispositions, net

(7,607)

(2%)

2,943

1%

4,275

1%

Restructuring charge

---

---

---

---

(4,052)

(1%)

Operating income

$

14,089

5%

66,004

17%

25,672

8%

Foreign exchange (loss)/gain

(4,133)

(2%)

(1,289)

(<1%)

225

<1%

Equity in net earnings/(losses) of unconsolidated companies 

(2,441)

(1%)

5,283

1%

1,075

<1%

Interest income and other, net

790

<1%

622

<1%

372

<1%

Interest and other debt costs, net

(13,182)

(4%)

(13,129)

(3%)

(12,102)

(4)%

Earnings (loss) before income taxes

$

(4,877)

(2%)

57,491

15%

15,242

5%

 

The company's revenues, day-based vessel utilization percentages and average day rates by vessel class and in total for the quarters ended June 30, 2015 and 2014 and for the quarter ended March 31, 2015, were as follows:

Quarter

Quarter Ended

Ended

June 30,

March 31,

2015

2014

2015

REVENUE BY VESSEL CLASS (In thousands):

Americas fleet:

     Deepwater

$

80,152

82,282

85,249

     Towing-supply

29,515

29,517

27,518

     Other

4,505

8,184

4,382

     Total

$

114,172

119,983

117,149

Asia/Pacific fleet:

     Deepwater

$

19,833

24,242

22,046

     Towing-supply

8,104

15,037

7,419

     Other

---

970

71

     Total

$

27,937

40,249

29,536

Middle East/North Africa fleet:

     Deepwater

$

20,386

19,467

20,943

     Towing-supply

26,189

35,279

23,797

     Other

691

793

746

     Total

$

47,266

55,539

45,486

Sub-Saharan Africa/Europe fleet:

     Deepwater

$

53,966

91,691

64,302

     Towing-supply

41,198

55,436

45,739

     Other

13,774

18,612

15,558

     Total

$

108,938

165,739

125,599

Worldwide fleet:

     Deepwater

$

174,337

217,682

192,540

     Towing-supply

105,006

135,269

104,473

     Other

18,970

28,559

20,757

     Total

$

298,313

381,510

317,770

UTILIZATION:

Americas fleet:

     Deepwater

81.3

%

88.7

88.3

     Towing-supply

64.7

62.7

65.7

     Other

45.3

69.3

50.2

     Total

69.6

%

74.8

73.2

Asia/Pacific fleet:

     Deepwater

45.0

%

70.6

66.6

     Towing-supply

73.4

90.7

63.2

     Other

---

100.0

7.5

     Total

58.2

%

83.5

62.5

Middle East/North Africa fleet:

     Deepwater

70.1

%

72.1

81.8

     Towing-supply

76.5

93.6

68.7

     Other

100.0

91.9

100.0

     Total

75.6

%

87.8

73.7

Sub-Saharan Africa/Europe fleet:

     Deepwater

68.4

%

86.3

76.5

     Towing-supply

66.4

75.3

71.5

     Other

69.7

78.1

67.2

     Total

68.2

%

79.5

71.3

Worldwide fleet:

     Deepwater

70.7

%

83.8

80.7

     Towing-supply

69.5

78.4

68.3

     Other

64.3

76.9

63.4

     Total

68.8

%

79.8

71.4

 

Quarter

Quarter Ended

Ended

June 30,

March 31,

2015

2014

2015

AVERAGE VESSEL DAY RATES:

Americas fleet:

     Deepwater

$

28,568

31,175

28,972

     Towing-supply

17,289

16,559

15,482

     Other

8,796

8,856

6,777

     Total

$

22,721

22,443

21,830

Asia/Pacific fleet:

     Deepwater

$

39,268

41,948

33,443

     Towing-supply

8,391

13,017

9,362

     Other

---

10,658

10,609

     Total

$

18,994

22,066

20,252

Middle East/North Africa fleet:

     Deepwater

$

22,830

25,081

22,558

     Towing-supply

12,143

13,366

12,526

     Other

3,799

4,742

4,145

     Total

$

14,626

15,502

15,121

Sub-Saharan Africa/Europe fleet:

     Deepwater

$

24,278

30,414

27,239

     Towing-supply

16,052

16,867

16,600

     Other

5,201

5,562

5,605

     Total

$

14,647

17,179

15,916

Worldwide fleet:

     Deepwater

$

27,128

31,061

27,942

     Towing-supply

14,197

15,261

14,460

     Other

5,676

6,306

5,752

     Total

$

17,379

18,701

17,928

 

The company's average number of vessels by class and geographic distribution for the quarters ended June 30, 2015 and 2014 and for the quarter ended March 31, 2015:

Quarter

Quarter Ended

Ended

June 30,

March 31,

2015

2014

2015

Americas fleet:

    Deepwater

38

33

37

    Towing-supply

29

31

30

    Other

12

15

14

        Total

79

79

81

        Less stacked vessels

13

8

10

            Active vessels

66

71

71

Asia/Pacific fleet:

    Deepwater

12

9

11

    Towing-supply

14

14

14

    Other

1

1

1

        Total

27

24

26

        Less stacked vessels

4

--

--

            Active vessels

23

24

26

Middle East/North Africa fleet:

    Deepwater

14

12

13

    Towing-supply

31

31

31

    Other

2

2

2

        Total

47

45

46

        Less stacked vessels

2

1

1

            Active vessels

45

44

45

Sub-Saharan Africa/Europe fleet:

    Deepwater

36

38

34

    Towing-supply

42

48

43

    Other

42

47

46

        Total

120

133

123

        Less stacked vessels

9

4

8

            Active vessels

111

129

115

Active owned or chartered vessels

245

268

257

Stacked vessels

28

13

19

Total owned or chartered vessels

273

281

276

Joint-venture and other

10

11

10

        Total

283

292

286

 

Note (B): Included in total owned or chartered vessels at June 30, 2015 and 2014 and at March 31, 2015, were 38, 11 and 21 vessels, respectively, that were stacked by the company. These vessels were considered to be in service and are included in the calculation of the company's utilization statistics.

The table below summarizes the various commitments to acquire and construct new vessels, by vessel type, as of June 30, 2015:

 

(In thousands)

Number of Vessels

Shipyard Location

Delivery Dates

Total Cost

Amount Invested 6/30/15

  Remaining Balance 6/30/15

Towing-supply:

    7,145 BHP AHTS

3

International

9/2015-3/2016

$

51,016

39,533

11,483

Deepwater

    261-foot PSV

6

International

1/2016 - 4/2017

    275-foot PSV

2

International

7/2015 - 10/2015

    292-foot PSV

1

International

5/2016

    300-foot PSV

2

United States

1/2016, 3/2016

    310-foot PSV

2

United States

10/2015, 1/2016

       Total Deepwater PSVs  

13

439,109

227,291

211,818

Total vessel commitments

16

$

490,125

266,824

223,301

 

The table below summarizes by vessel class and vessel type the number of vessels expected to be delivered by quarter along with the expected cash outlay (in thousands) of the various commitments as discussed above:

Quarter Period Ended

Vessel class and  type

09/15

  12/15

03/16

06/16

09/16

Thereafter

Deepwater PSVs

1

2

4

3

1

2

Towing-supply vessels

1

1

1

--

--

--

    Totals

2

3

5

3

1

2

(In thousands)

Expected quarterly cash outlay

$

56,573

62,572

35,364

49,292

5,105

     14,395 (C)

 

Note (C): The $14,395 of 'Thereafter' vessel construction obligations are expected to be paid as follows: $9,704 during fiscal 2017 and $4,691 during fiscal 2018.

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SOURCE Tidewater Inc.



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http://www.tdw.com