TIDEWATER INC - FORM 8-K - EX-99.1 - PRESS RELEASE

Attached files

file	filename
8-K - FORM 8-K - TIDEWATER INC	d8k.htm

Exhibit 99.1

LOGO

Tidewater Reports Third Quarter Results For Fiscal 2011

NEW ORLEANS—February 4, 2011—Tidewater Inc. (NYSE:TDW) announced today third quarter net earnings for the period ended December 31, 2010, of $34.4 million, or $0.67 per common share, on revenues of $271.8 million. For the same quarter last year, net earnings were $59.9 million, or $1.16 per common share, on revenues of $286.5 million. The immediately preceding quarter ended September 30, 2010, had net earnings of $19.4 million, or $0.38 per common share, on revenues of $267.1 million. Included in net earnings for the September 30, 2010 quarter was a $4.35 million ($4.35 million after-tax, or $0.09 per common share) charge included in general and administrative expenses related to an agreement in principle with the United States Department of Justice to resolve the previously disclosed Foreign Corrupt Practices Act investigation. Also included in the September 2010 quarter was an effective tax rate of 34.4%, which reflected the Company’s then current estimate for its operating tax rate for fiscal 2011 of approximately 22.5%, the cumulative effect on income tax expense for the six-months ended September 30, 2010 of the Company’s then current estimate of its effective tax rate, and the Department of Justice charge, which has no related tax benefit. Relative to the Company’s previously disclosed effective tax rate estimate of 18.5%, the impact of the higher effective tax rate on the September 2010 quarterly results was approximately $0.09 per common share.

As previously announced, Tidewater will hold a conference call to discuss December quarterly earnings on Friday, February 4, 2011, at 10:00 a.m. Central time, promptly following the Company’s release of quarterly earnings. Investors and interested parties may listen to the teleconference via telephone by calling 1-888-388-7493 if calling from the U.S. or Canada (1-706-679-8348 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 February 4, 2011, and will continue until 11:59 p.m. Central time on February 6, 2011. To hear the replay, call 1-800-642-1687 (1-706-645-9291 if calling from outside the U.S.). The conference call ID number is 36613141.

A simultaneous webcast of the conference call will be accessible online at the Tidewater Inc. website, www.tdw.com. The online replay will be available until March 14, 2011.

Tidewater Inc. owns 384 vessels, the world’s largest fleet of vessels serving the global offshore energy industry.

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

CONTACT: Tidewater Inc., New Orleans

Joe Bennett, Executive Vice President and Chief Investor Relations Officer

504-566-4506

SOURCE: Tidewater Inc.

Financial information is displayed on the next page.

TIDEWATER INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except share and per share data)


	Quarter Ended December 31,						Nine Months Ended December 31,
	2010			2009			2010			2009
Revenues:
Vessel revenues	$	269,633			274,507			798,499			879,506
Other marine revenues		2,142			11,998			2,901			29,132

		271,775			286,505			801,400			908,638

Costs and expenses:
Vessel operating costs		160,597			148,188			485,072			459,365
Costs of other marine revenues		2,705			10,565			3,403			26,147
Depreciation and amortization		35,058			32,734			105,853			96,643
General and administrative		33,238			33,676			103,932			105,750
Provision for Venezuelan operations		—			—			—			49,070
Gain on asset dispositions, net		(2,425	)		(5,151	)		(11,621	)		(23,063	)

		229,173			220,012			686,639			713,912

Operating income		42,602			66,493			114,761			194,726
Other income (expenses):
Foreign exchange gain (loss)		973			161			2,147			(4,677	)
Equity in net earnings of unconsolidated companies		3,291			3,732			8,766			14,704
Interest income and other, net		1,074			978			3,481			4,648
Interest and other debt costs		(3,646	)		(583	)		(6,405	)		(1,110	)

		1,692			4,288			7,989			13,565

Earnings before income taxes		44,294			70,781			122,750			208,291
Income tax expense		9,931			10,885			29,153			5,728

Net earnings	$	34,363			59,896			93,597			202,563


Basic earnings per common share	$	0.67			1.17			1.83			3.94


Diluted earnings per common share	$	0.67			1.16			1.82			3.93


Weighted average common shares outstanding		51,053,051			51,373,290			51,129,443			51,369,519
Dilutive effect of stock options and restricted stock		306,647			280,962			231,463			238,133

Adjusted weighted average common shares		51,359,698			51,654,252			51,360,906			51,607,652


Cash dividends declared per common share	$	0.25			0.25			0.75			0.75

TIDEWATER INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and par value data)


	December 31, 2010			March 31, 2010
ASSETS
Current assets:
Cash and cash equivalents	$	308,041			223,070
Trade and other receivables, net		282,312			311,617
Marine operating supplies		49,169			44,237
Other current assets		13,508			6,703

Total current assets		653,030			585,627

Investments in, at equity, and advances to unconsolidated companies		36,464			40,614
Properties and equipment:
Vessels and related equipment		3,837,234			3,455,322
Other properties and equipment		85,435			82,007

		3,922,669			3,537,329
Less accumulated depreciation and amortization		1,285,849			1,283,505

Net properties and equipment		2,636,820			2,253,824

Goodwill		328,754			328,754
Other assets		100,472			84,538

Total assets	$	3,755,540			3,293,357


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities on long-term debt		—			25,000
Accounts payable		41,938			41,673
Accrued expenses		123,256			119,485
Accrued property and liability losses		3,909			4,809
Other current liabilities		29,485			13,745

Total current liabilities		198,588			204,712

Long-term debt		700,000			275,000
Deferred income taxes		218,751			211,504
Accrued property and liability losses		5,304			12,809
Other liabilities and deferred credits		126,759			125,302

Commitments and Contingencies

Stockholders’ equity:
Common stock of $0.10 par value, 125,000,000 shares authorized, issued 51,440,973 shares at December 31, 2010 and 51,830,048 shares at March 31, 2010		5,144			5,183
Additional paid-in capital		83,586			73,203
Retained earnings		2,437,585			2,402,575
Accumulated other comprehensive loss		(20,177	)		(16,931	)

Total stockholders’ equity		2,506,138			2,464,030

Total liabilities and stockholders’ equity	$	3,755,540			3,293,357

TIDEWATER INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)


	Nine Months Ended December 31,
	2010			2009

Operating activities:
Net earnings	$	93,597			202,563
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		105,853			96,643
Provision (benefit) for deferred income taxes		(12,114	)		(15,172	)
Reversal of liabilities for uncertain tax positions		—			(34,284	)
Gain on asset dispositions, net		(11,621	)		(23,063	)
Provision for Venezuelan operations		—			49,070
Equity in earnings of unconsolidated companies, net of dividends		4,150			(694	)
Compensation expense - stock-based		6,661			7,328
Excess tax liability (benefit) on stock options exercised		(275	)		(161	)
Changes in assets and liabilities, net:
Trade and other receivables		21,155			(4,824	)
Marine operating supplies		(2,932	)		2,622
Other current assets		(6,805	)		(6,050	)
Accounts payable		265			(11,856	)
Accrued expenses		(966	)		31,406
Accrued property and liability losses		(900	)		130
Other current liabilities		16,957			7,755
Other liabilities and deferred credits		5,581			(2,117	)
Other, net		(556	)		54

Net cash provided by operating activities		218,050			299,350

Cash flows from investing activities:
Proceeds from sales of assets		29,732			34,063
Proceeds from sales/leaseback of assets		—			101,755
Proceeds from insurance settlements on Venezuela seized vessels		8,150			—
Additions to properties and equipment		(508,640	)		(304,013	)

Net cash used in investing activities		(470,758	)		(168,195	)

Cash flows from financing activities:
Principal payments on debt		(190,000	)		—
Debt borrowings		590,000			—
Debt issuance costs		(7,446	)		(7,712	)
Proceeds from exercise of stock options		3,457			962
Cash dividends		(38,619	)		(38,786	)
Excess tax benefit on stock options exercised		275			161
Stock repurchases		(19,988	)		—

Net cash used in financing activities		337,679			(45,375	)

Net change in cash and cash equivalents		84,971			85,780
Cash and cash equivalents at beginning of period		223,070			250,793

Cash and cash equivalents at end of period	$	308,041			336,573

Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest	$	8,898			7,222
Income taxes	$	35,810			42,413

The company’s vessel revenues and vessel operating expenses and the related percentage of total vessel revenues for the quarters and the nine-month periods ended December 31, 2010 and 2009 and for the quarter ended September 30, 2010, were as follows:


	Quarter Ended December 31,										Nine Months Ended December 31,										Quarter Ended September 30,
(In thousands)	2010		%			2009		%			2010		%			2009		%			2010		%
Vessel revenues:
International	$	249,190		92	%		254,586		93	%		727,914		91	%		812,472		92	%		241,579		91	%
United States		20,443		8	%		19,921		7	%		70,585		9	%		67,034		8	%		25,291		9	%

Vessel revenues		269,633		100	%		274,507		100	%		798,499		100	%		879,506		100	%		266,870		100	%

Vessel operating costs:
Crew costs	$	84,412		31	%		79,458		29	%		255,045		32	%		240,947		27	%		89,941		34	%
Repair and maintenance		26,107		10	%		24,386		9	%		84,991		11	%		81,472		9	%		31,791		12	%
Insurance and loss reserves		6,071		2	%		1,735		1	%		14,994		2	%		9,794		1	%		4,513		2	%
Fuel, lube and supplies		16,399		6	%		13,210		5	%		47,757		6	%		41,265		5	%		16,437		6	%
Vessel operating leases		4,492		2	%		4,494		2	%		13,472		2	%		10,564		1	%		4,490		2	%
Other		23,116		9	%		24,905		9	%		68,813		9	%		75,323		9	%		22,720		9	%

Vessel operating costs		160,597		60	%		148,188		54	%		485,072		61	%		459,365		52	%		169,892		64	%

Vessel operating margin (A)	$	109,036		40	%		126,319		46	%		313,427		39	%		420,141		48	%		96,978		36	%

Note (A): The following table reconciles vessel operating margin as presented above to operating income for the quarters and the nine-month periods ended December 31, 2010 and 2009 and for the quarter ended September 30, 2010:


	Quarter Ended December 31,						Nine Months Ended December 31,						Quarter Ended September 30,
(In thousands)	2010			2009			2010			2009			2010
Vessel operating margin	$	109,036			126,319			313,427			420,141			96,978
Other marine services revenues		2,142			11,998			2,901			29,132			230
Costs of other marine revenues		(2,705	)		(10,565	)		(3,403	)		(26,147	)		(203	)
Depreciation and amortization		(35,058	)		(32,734	)		(105,853	)		(96,643	)		(35,832	)
General and administrative		(33,238	)		(33,676	)		(103,932	)		(105,750	)		(37,919	)
Provision for Venezuelan operations		—			—			—			(49,070	)		—
Gain on asset dispositions, net		2,425			5,151			11,621			23,063			3,638

Operating income	$	42,602			66,493			114,761			194,726			26,892

The company’s operating income and other components of earnings before income taxes and its related percentage of total revenue for the quarters and the nine-month periods ended December 31, 2010 and 2009 and for the quarter ended September 30, 2010, were as follows:


	Quarter Ended December 31,												Nine Months Ended December 31,												Quarter Ended September 30,
(In thousands)	2010			%			2009			%			2010			%			2009			%			2010			%
Vessel operating profit:
International	$	48,937			18	%		66,893			23	%		123,067			15	%		195,375			22	%		31,025			12	%
United States		1,210			<1	%		1,527			1	%		11,945			1	%		5,370			1	%		5,251			2	%

		50,147			18	%		68,420			24	%		135,012			17	%		200,745			22	%		36,276			14	%
Corporate expenses		(9,188	)		(3	%)		(8,289	)		(3	%)		(30,815	)		(4	%)		(31,232	)		(3	%)		(12,864	)		(5	%)
Gain on asset dispositions, net		2,425			1	%		5,151			2	%		11,621			1	%		23,063			3	%		3,638			1	%
Other marine services		(782	)		(<1	%)		1,211			<1	%		(1,057	)		(<1	%)		2,150			<1	%		(158	)		(<1	%)

Operating income		42,602			16	%		66,493			23	%		114,761			14	%		194,726			21	%		26,892			10	%

Foreign exchange gain (loss)		973			<1	%		161			<1	%		2,147			<1	%		(4,677	)		(1	%)		(436	)		(<1	%)
Equity in net earnings of unconsolidated companies		3,291			1	%		3,732			1	%		8,766			1	%		14,704			2	%		2,785			1	%
Interest income and other, net		1,074			<1	%		978			<1	%		3,481			<1	%		4,648			1	%		2,029			1	%
Interest and other debt costs		(3,646	)		(1	%)		(583	)		(<1	%)		(6,405	)		(1	%)		(1,110	)		(<1	%)		(1,686	)		(1	%)

Earnings before income taxes	$	44,294			16	%		70,781			25	%		122,750			15	%		208,291			23	%		29,584			11	%

The company’s revenues, vessel utilization percentages and average day rates by vessel class and in total for the quarters and the nine-month periods ended December 31, 2010 and 2009 and the quarter ended September 30, 2010, were as follows:


	Quarter Ended December 31,					Nine Months Ended December 31,				Quarter Ended September 30,
	2010			2009		2010		2009		2010
REVENUES BY VESSEL CLASS (In thousands):
International-based fleet:
Deepwater vessels	$	96,540			81,670		274,328		224,478		88,193
Towing-supply/supply		122,412			144,500		366,306		491,153		124,797
Crew/utility		20,534			19,812		59,456		67,775		19,812
Offshore tugs		9,704			8,604		27,824		28,499		8,777
Other		—			—		—		567		—
Total	$	249,190			254,586		727,914		812,472		241,579
United States-based fleet:
Deepwater vessels	$	12,373			12,554		46,093		40,565		16,672
Towing-supply/supply		7,738			6,931		23,299		23,788		8,190
Crew/utility		332			436		1,193		2,681		429
Total	$	20,443			19,921		70,585		67,034		25,291
Worldwide fleet:
Deepwater vessels	$	108,913			94,224		320,421		265,043		104,865
Towing-supply/supply		130,150			151,431		389,605		514,941		132,987
Crew/utility		20,866			20,248		60,649		70,456		20,241
Offshore tugs		9,704			8,604		27,824		28,499		8,777
Other		—			—		—		567		—
Total	$	269,633			274,507		798,499		879,506		266,870

UTILIZATION:
International-based fleet:
Deepwater vessels		79.6	%		78.8		80.1		78.7		77.4
Towing-supply/supply		55.1			63.8		54.8		69.7		55.2
Crew/utility		80.6			70.4		76.3		72.5		76.0
Offshore tugs		58.7			56.0		57.7		56.8		55.1
Other		—			—		—		79.2		—
Total		63.7	%		66.5		62.7		70.4		62.3
United States-based fleet:
Deepwater vessels		86.0	%		83.7		88.9		84.1		89.1
Towing-supply/supply		45.9			35.8		46.3		35.8		48.9
Crew/utility		25.9			14.3		25.3		26.9		32.5
Total		52.0	%		39.5		53.4		42.2		57.2
Worldwide fleet:
Deepwater vessels		80.2	%		79.4		81.1		79.4		78.9
Towing-supply/supply		54.2			60.7		53.9		65.9		54.6
Crew/utility		77.9			65.0		73.3		68.1		73.9
Offshore tugs		58.7			56.0		57.7		56.8		55.1
Other		—			—		—		79.2		—
Total		62.7	%		63.8		61.9		67.5		61.8

AVERAGE VESSEL DAY RATES:
International-based fleet:
Deepwater vessels	$	22,663			24,406		22,658		24,677		22,619
Towing-supply/supply		11,761			12,164		11,945		12,361		11,975
Crew/utility		4,829			4,642		4,797		4,947		4,766
Offshore tugs		6,665			6,654		6,495		7,162		6,415
Other		—			—		—		9,679		—
Total	$	12,230			12,247		12,244		12,205		12,173
United States-based fleet:
Deepwater vessels	$	25,425			26,683		25,546		26,787		25,432
Towing-supply/supply		8,374			8,417		8,113		9,399		8,268
Crew/utility		4,749			4,749		4,759		4,966		4,778
Total	$	13,806			14,375		14,327		14,620		14,570
Worldwide fleet:
Deepwater vessels	$	22,946			24,687		23,032		24,978		23,024
Towing-supply/supply		11,485			11,921		11,617		12,184		11,653
Crew/utility		4,828			4,644		4,796		4,948		4,767
Offshore tugs		6,665			6,654		6,495		7,162		6,415
Other		—			—		—		9,679		—
Total	$	12,337			12,380		12,403		12,360		12,366

The average day rates and utilization percentages for the company’s new vessels (defined as vessels acquired or constructed since calendar year 2000 as part of its new build and acquisition program) and its older, more traditional vessels for the quarters and the nine-month periods ended December 31, 2010 and 2009 and for the quarter ended September 30, 2010, were as followed:


	Quarter Ended December 31,					Nine Months Ended December 31,				Quarter Ended September 30,
	2010			2009		2010		2009		2010
AVERAGE VESSEL DAY RATES:
International-based fleet:
New vessels	$	14,100			15,807		14,258		16,126		14,122
Traditional vessels		7,285			7,584		7,569		8,275		7,603
Total International-based fleet	$	12,230			12,247		12,244		12,205		12,173
United States-based fleet:
New vessels	$	20,490			20,843		21,030		19,931		21,205
Traditional vessels		10,196			10,269		9,943		10,985		10,039
Total U.S.-based fleet	$	13,806			14,375		14,327		14,620		14,570
Worldwide fleet:
New vessels	$	14,317			16,027		14,561		16,328		14,463
Traditional vessels		7,712			7,815		7,908		8,480		7,964
Total Worldwide Fleet	$	12,337			12,380		12,403		12,360		12,366


UTILIZATION:
International-based fleet:
New vessels		87.5	%		86.6		86.6		86.6		85.8
Traditional vessels		37.0			51.0		38.2		59.3		37.9
Total International-based fleet		63.7	%		66.5		62.7		70.4		62.3
United States-based fleet:
New vessels		69.8	%		52.7		71.7		56.4		76.6
Traditional vessels		45.7			34.1		45.7		35.9		48.8
Total U.S.-based fleet		52.0	%		39.5		53.4		42.2		57.2
Worldwide fleet:
New vessels		86.8	%		84.2		85.8		84.2		85.3
Traditional vessels		38.1			49.0		39.2		56.5		39.2
Total Worldwide Fleet		62.7	%		63.8		61.9		67.5		61.8

The company’s average number of vessels by class and geographic distribution for the quarters and the nine-month periods ended December 31, 2010 and 2009 and for the quarter ended September 30, 2010, were as follows:


	Quarter Ended December 31,				Nine Months Ended December 31,				Quarter Ended September 30,
	2010		2009		2010		2009		2010
International-based fleet:
Deepwater vessels		59		46		55		42		55
Towing-supply/supply		205		203		204		207		205
Crew/utility		57		66		59		69		59
Offshore tugs		27		25		27		25		27
Other		—		—		—		—		—

Total		348		340		345		343		346

United States-based fleet:
Deepwater vessels		6		6		7		7		8
Towing-supply/supply		22		25		22		26		22
Crew/utility		3		7		4		7		3

Total		31		38		33		40		33

Owned or chartered vessels included in marine revenues (B)		379		378		378		383		379
Vessels withdrawn from service		5		7		6		8		6
Joint-venture and other		10		10		10		10		10

Total		394		395		394		401		395

Note (B): Included in total owned or chartered vessels, for the quarters ended December 31, 2010 and 2009 and for the quarter ended September 30, 2010, were 92, 73 and 94 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 company’s vessel commitments by vessel class and type as of as of December 31, 2010, were as follows:


	International Built						U.S. Built
Vessel class and type	Number of Vessels		Total Cost		Expended Through 12/31/10		Number of Vessels		Total Cost		Expended Through 12/31/10
			(In thousands)						(In thousands)
Deepwater vessels:
Anchor handling towing supply		—		—		—		—		—		—
Platform supply vessels		17	$	475,504	$	172,059		1	$	34,645	$	23,834
Towing-supply/supply vessels:
Anchor handling towing supply		18	$	262,452	$	93,377		—		—		—
Platform supply vessels		—		—		—		—		—		—
Crewboats		1	$	10,227	$	7,590		—		—		—

Totals		36	$	748,183	$	273,026		1	$	34,645	$	23,834

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


	Quarter Period Ended
Vessel class and type	03/11		06/11		09/11		12/11		03/12		Thereafter

Deepwater vessels:
Anchor handling towing supply		—		—		—		—		—		—
Platform supply vessels		1		2		1		4		1		9
Towing-supply/supply vessels:
Anchor handling towing supply		3		4		3		6		2		—
Platform supply vessels		—		—		—		—		—		—
Crewboats		—		—		—		—		1		—

Totals		4		6		4		10		4		9

(In thousands)
Expected quarterly cash outlay	$	130,114		96,785		60,277		91,912		53,912		52,968	(C)

Note (C): The $52,968 of ‘Thereafter’ vessel construction obligations is expected to be paid out during fiscal 2013.

Attached files

Stock widget

Investing forum

TIDEWATER INC Reports

Also read