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

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

Exhibit 99.1

LOGO

Tidewater Reports First Quarter Results For Fiscal 2012

NEW ORLEANS, LA. August 4, 2011 -- Tidewater Inc. (NYSE:TDW) announced today first quarter net earnings for the period ended June 30, 2011, of $24.6 million, or $0.48 per share, on revenues of $254.6 million. For the same quarter last year, net earnings were $39.8 million, or $0.77 per share, on revenues of $262.5 million. The immediately preceding quarter ended March 31, 2011, had net earnings of $12.0 million, or $0.23 per common share, on revenues of $254.0 million.

Included in net earnings for the March 31, 2011 quarter were:

•

a $6.3 million ($6.3 million after-tax, or $0.12 per common share) charge to general and administrative expenses related to a previously disclosed settlement with the Federal Government of Nigeria.

•

a $3.9 million ($3.0 million after-tax, or $0.06 per common share) impairment charge included in “Gain on asset disposition, net” related to a write-down to estimated fair market value of eleven vessels and related parts inventory that are expected to be sold to a scrap dealer.

•

an effective income tax rate for the quarter of 52.6%, in part reflecting the impact of the two previously discussed charges which have virtually no related tax benefits. The quarterly effective tax rate also reflects an increase in the Company’s estimated annual effective tax rate exclusive of discrete items (including the two discussed above) from approximately 23% to the final fiscal 2011 effective tax rate excluding discrete items of approximately 26%. The impact of this increased tax rate on fourth fiscal quarter diluted earnings per share totaled $0.10, with $0.02 per common share pertaining to fourth quarter earnings and $0.08 per common share related to the cumulative effect on income tax expense related to the three prior quarters’ earnings.

As previously announced, Tidewater will hold a conference call to discuss June quarterly earnings on Thursday, August 4, 2011, at 9:00 a.m. Central time. 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 August 4, 2011, and will continue until 11:59 p.m. Central time on August 6, 2011. To hear the replay, call 1-855-859-2056 or (1-404-537-3406 if calling from outside the U.S.). The conference call ID number is 83160260.

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 September 4, 2011. Upon completion of the conference call, the company will also file a Form 8-K with the SEC, which will include a transcript of the conference call.

Tidewater Inc. owns 373 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

Financial information is displayed on the next page.

TIDEWATER INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except share and per share data)



	Three Months Ended June 30,

	2011			2010

Revenues:
Vessel revenues	$	253,315			261,996
Other operating revenues		1,292			529

		254,607			262,525

Costs and expenses:
Vessel operating costs		152,302			154,583
Costs of other operating revenues		1,231			495
Depreciation and amortization		33,749			34,963
General and administrative		37,581			32,775
Gain on asset dispositions, net		(1,717	)		(5,558	)

		223,146			217,258

Operating income		31,461			45,267
Other income (expenses):
Foreign exchange gain		814			1,610
Equity in net earnings of unconsolidated companies		2,489			2,690
Interest income and other, net		1,190			378
Interest and other debt costs		(4,061	)		(1,073	)

		432			3,605

Earnings before income taxes		31,893			48,872
Income taxes		7,335			9,041

Net earnings	$	24,558			39,831


Basic earnings per common share	$	0.48			0.78


Diluted earnings per common share	$	0.48			0.77


Weighted average common shares outstanding		51,278,261			51,328,284
Dilutive effect of stock options and restricted stock		315,527			233,924

Adjusted weighted average common shares		51,593,788			51,562,208


Cash dividends declared per common share	$	0.25			0.25

TIDEWATER INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and par value data)



ASSETS	June 30, 2011			March 31, 2011

Current assets:
Cash and cash equivalents	$	196,423			245,720
Trade and other receivables, net		293,657			272,467
Marine operating supplies		55,181			50,748
Other current assets		18,332			10,212

Total current assets		563,593			579,147

Investments in, at equity, and advances to unconsolidated companies		40,783			39,044
Properties and equipment:
Vessels and related equipment		3,942,046			3,910,430
Other properties and equipment		91,868			85,589

		4,033,914			3,996,019
Less accumulated depreciation and amortization		1,301,015			1,294,239

Net properties and equipment		2,732,899			2,701,780

Goodwill		328,754			328,754
Other assets		110,901			99,391

Total assets	$	3,776,930			3,748,116


LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable		47,885			45,177
Accrued expenses		121,727			120,869
Accrued property and liability losses		3,909			3,846
Other current liabilities		19,709			13,697

Total current liabilities		193,230			183,589

Long-term debt		700,000			700,000
Deferred income taxes		218,571			216,735
Accrued property and liability losses		7,149			5,327
Other liabilities and deferred credits		129,837			128,521

Commitments and Contingencies

Stockholders’ equity:
Common stock of $0.10 par value, 125,000,000 shares authorized, issued 51,879,153 shares at June 30, 2011 and 51,876,038 shares at March 31, 2011		5,188			5,188
Additional paid-in capital		92,719			90,204
Retained earnings		2,448,325			2,436,736
Accumulated other comprehensive loss		(18,089	)		(18,184	)

Total stockholders’ equity		2,528,143			2,513,944

Total liabilities and stockholders’ equity	$	3,776,930			3,748,116

TIDEWATER INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)



	Three Months Ended June 30,
	2011			2010

Operating activities:
Net earnings	$	24,558			39,831
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		33,749			34,963
Provision (benefit) for deferred income taxes		(7,908	)		(10,724	)
Gain on asset dispositions, net		(1,717	)		(5,558	)
Equity in earnings of unconsolidated companies, less dividends		(1,739	)		(1,982	)
Compensation expense - stock-based		2,905			2,389
Excess tax benefit on stock options exercised		(17	)		(138	)
Changes in assets and liabilities, net:
Trade and other receivables		(21,190	)		(9,250	)
Marine operating supplies		(4,433	)		(1,627	)
Other current assets		(8,120	)		(10,487	)
Accounts payable		2,708			(7,284	)
Accrued expenses		(292	)		6,920
Accrued property and liability losses		63			(886	)
Other current liabilities		5,575			14,982
Other liabilities and deferred credits		1,620			946
Other, net		756			659

Net cash provided by operating activities		26,518			52,754

Cash flows from investing activities:
Proceeds from sales of assets		6,677			11,929
Proceeds from insurance settlements on Venezuela seized vessels		---			8,150
Additions to properties and equipment		(69,652	)		(141,148	)

Net cash used in investing activities		(62,975	)		(121,069	)

Cash flows from financing activities:
Debt issuance costs		(6	)		---
Proceeds from exercise of stock options		88			905
Cash dividends		(12,939	)		(12,933	)
Excess tax benefit on stock options exercised		17			138
Stock repurchases		---			(19,988	)

Net cash used in financing activities		(12,840	)		(31,878	)

Net change in cash and cash equivalents		(49,297	)		(100,193	)
Cash and cash equivalents at beginning of period		245,720			223,070

Cash and cash equivalents at end of period	$	196,423			122,877

Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest	$	12,223			786
Income taxes	$	12,011			11,477
Non-cash investing activities:
Additions to properties and equipment	$	---			10,974

The company’s vessel revenues and vessel operating expenses and the related percentage of total vessel revenues for the quarters ended June 30, 2011 and 2010 and for the quarter ended March 31, 2011 were as follows:


	Quarter Ended June 30,							Quarter Ended March 31,
(In thousands)		2011		%	2010		%		2011		%

Vessel revenues:
International	$	235,107	93	%	237,145	91	%		234,608	93	%
United States		18,208	7	%	24,851	9	%		18,106	7	%

Vessel revenues		253,315	100	%	261,996	100	%		252,714	100	%

Vessel operating costs:
Crew costs	$	81,124	32	%	80,692	31	%		83,081	33	%
Repair and maintenance		22,060	9	%	27,093	10	%		25,505	10	%
Insurance and loss reserves		5,297	2	%	4,410	2	%		4,607	2	%
Fuel, lube and supplies		16,367	6	%	14,921	6	%		14,027	6	%
Vessel operating leases		4,492	2	%	4,490	2	%		4,492	2	%
Other		22,962	9	%	22,977	9	%		21,806	9	%

Total vessel operating costs		152,302	60	%	154,583	59	%		153,518	60	%

Vessel operating margin (A)	$	101,013	40	%	107,413	41	%		99,196	39	%

Note (A): The following table reconciles vessel operating margin as presented above to operating income for the quarters ended June 30, 2011 and 2010 and March 31, 2011:


	Quarter Ended June 30,					Quarter Ended March 31,

(In thousands)		2011		2010			2011

Vessel operating margin	$	101,013		107,413			99,196
Other marine revenues		1,292		529			1,274
Costs of other operating revenues		(1,231	)	(495	)		(1,257	)
Depreciation and amortization		(33,749	)	(34,963	)		(34,723	)
General and administrative		(37,581	)	(32,775	)		(41,522	)
Gain on asset dispositions, net		1,717		5,558			1,607

Operating income	$	31,461		45,267			24,575

The company’s vessel operating profit and other components of earnings before income taxes and its related percentage of total revenue for the quarters ended June 30, 2011 and 2010 and March 31, 2011 were as follows:


	Quarter Ended June 30,									Quarter Ended March 31,
(In thousands)		2011			%	2010			%		2011			%

Vessel operating profit:
International	$	36,768		14	%	43,105		16	%		38,984		15	%
United States		2,608		1	%	5,484		2	%		(364	)	(<1	%)

		39,376		15	%	48,589		19	%		38,620		15	%
Corporate expenses		(9,521	)	(4	%)	(8,763	)	(3	%)		(15,546	)	(6	%)
Gain on asset dispositions, net		1,717		1	%	5,558		2	%		1,607		1	%
Other operating expenses		(111	)	(<1	%)	(117	)	(<1	%)		(106	)	(<1	%)

Operating income	$	31,461		12	%	45,267		17	%		24,575		10	%

Foreign exchange gain		814		<1	%	1,610		1	%		131		<1	%
Equity in net earnings of unconsolidated companies		2,489		1	%	2,690		1	%		3,419		1	%
Interest income and other, net		1,190		<1	%	378		<1	%		1,584		1	%
Interest and other debt costs		(4,061	)	(2	%)	(1,073	)	(<1	%)		(4,364	)	(2	%)

Earnings before income taxes	$	31,893		13	%	48,872		19	%		25,345		10	%

The company’s revenues, vessel utilization percentages and average day rates by vessel class and in total for the quarters ended June 30, 2011 and 2010 and March 31, 2011 were as follows:

		$000,000,0			$000,000,0		$000,000,0
	Quarter Ended June 30,					Quarter Ended March 31,
	2011			2010		2011


REVENUE BY VESSEL CLASS (in thousands):
International-based fleet:
Deepwater vessels	$	91,031			89,595		86,524
Towing-supply/supply		113,259			119,097		118,806
Crew/utility		22,266			19,110		20,979
Offshore tugs		8,551			9,343		8,299
Total	$	235,107			237,145		234,608
United States-based fleet:
Deepwater vessels	$	10,560			17,048		9,385
Towing-supply/supply		7,648			7,371		8,721
Crew/utility		---			432		---
Total	$	18,208			24,851		18,106
Worldwide fleet:
Deepwater vessels	$	101,591			106,643		95,909
Towing-supply/supply		120,907			126,468		127,527
Crew/utility		22,266			19,542		20,979
Offshore tugs		8,551			9,343		8,299
Total	$	253,315			261,996		252,714


UTILIZATION:
International-based fleet:
Deepwater vessels		74.6	%		83.6		75.2
Towing-supply/supply		50.6			53.9		54.5
Crew/utility		89.5			72.4		85.8
Offshore tugs		55.4			59.4		53.7
Total		61.7	%		62.2		63.2
United States-based fleet:
Deepwater vessels		89.0	%		91.0		82.9
Towing-supply/supply		51.7			44.1		54.2
Crew/utility		---			20.4		---
Total		59.8	%		51.1		57.9
Worldwide fleet:
Deepwater vessels		75.7	%		84.6		75.8
Towing-supply/supply		50.7			52.9		54.5
Crew/utility		89.5			68.5		84.3
Offshore tugs		55.4			59.4		53.7
Total		61.5	%		61.1		62.8


AVERAGE VESSEL DAY RATES:
International-based fleet:
Deepwater vessels	$	21,677			22,690		21,294
Towing-supply/supply		12,485			12,108		12,090
Crew/utility		4,968			4,793		4,850
Offshore tugs		6,748			6,402		6,601
Total	$	12,361			12,331		12,048
United States-based fleet:
Deepwater vessels	$	26,088			25,747		25,163
Towing-supply/supply		9,032			7,702		9,936
Crew/utility		---			4,749		---
Total	$	14,548			14,531		14,477
Worldwide fleet:
Deepwater vessels	$	22,065			23,129		21,619
Towing-supply/supply		12,190			11,718		11,913
Crew/utility		4,968			4,792		4,850
Offshore tugs		6,748			6,402		6,601
Total	$	12,496			12,511		12,194

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 ended June 30, 2011 and 2010 and March 31, 2011 were as follows:


	Quarter Ended June 30,					Quarter Ended March 31,
	2011			2010		2011

AVERAGE VESSEL DAY RATES:
International-based fleet:
New vessels	$	13,871			14,587		13,608
Traditional vessels		7,358			7,787		7,561
Total International-based fleet	$	12,361			12,331		12,048
United States-based fleet:
New vessels	$	22,919			21,248		23,603
Traditional vessels		11,115			9,597		10,788
Total U.S.-based fleet	$	14,548			14,531		14,477
Worldwide fleet:
New vessels	$	14,091			14,943		13,851
Traditional vessels		7,987			8,029		8,047
Total Worldwide Fleet	$	12,496			12,511		12,194

UTILIZATION:
International-based fleet:
New vessels		84.1	%		86.5		85.8
Traditional vessels		32.7			39.7		36.0
Total International-based fleet		61.7	%		62.2		63.2
United States-based fleet:
New vessels		100.0	%		68.9		80.2
Traditional vessels		51.3			43.0		52.1
Total U.S.-based fleet		59.8	%		51.1		57.9
Worldwide fleet:
New vessels		84.4	%		85.3		85.6
Traditional vessels		34.8			40.1		37.7
Total Worldwide Fleet		61.5	%		61.1		62.8

The company’s average number of vessels by class and geographic distribution for the quarters ended June 30, 2011 and 2010 and for the quarter ended March 31, 2011 were as follows:


	Quarter Ended June 30,				Quarter Ended March 31,
	2011		2010		2011

International-based fleet:
Deepwater vessels		62		52		60
Towing-supply/supply		197		200		200
Crew/utility		55		61		56
Offshore tugs		25		27		26

Total		339		340		342

United States-based fleet:
Deepwater vessels		5		8		5
Towing-supply/supply		18		24		18
Crew/utility		---		5		1

Total		23		37		24

Owned or chartered vessels included in marine revenues (B)		362		377		366
Vessels withdrawn from service		4		6		5
Joint-venture and other		10		10		10

Total		376		393		381

Note (B): Included in total owned or chartered vessels for the quarters ended June 30, 2011 and 2010 and March 31, 2011, were 98, 89 and 90 vessels, respectively, that were stacked by the company. These vessels were considered to be in service and were included in the calculation of the company’s utilization statistics.

The company’s vessel commitments by vessel class and type as of June 30, 2011 were as follows:


	International Built						U.S. Built
Vessel class and type		Number of Vessels		Total Cost	Invested Through 6/30/11	Remaining Balance 06/30/11		Number of Vessels	Total Cost	Invested Through 6/30/11	Remaining Balance 06/30/11

In thousands, except number of vessels:
Deepwater vessels:
Anchor handling towing supply		---		---	---	---		---	---	---	---
Platform supply vessels		17	$	470,073	189,150	280,923		3	136,513	50,585	85,928
Towing-supply/supply vessels:
Anchor handling towing supply		17		266,701	116,369	150,332		---	---	---	---
Platform supply vessels		2		49,928	---	49,928		---	---	---	---
Crewboats		1		9,750	7,800	1,950		---	---	---	---

Totals		37	$	796,452	313,319	483,133		3	136,513	50,585	85,928

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

		September00	September00	September00	September00	September00	September00
	Quarter Period Ended

Vessel class and type		09/11	12/11	03/12	06/12	09/12	Thereafter

Deepwater vessels:
Anchor handling towing supply		---	---	---	---	---	---
Platform supply vessels		3	3	2	4	1	7
Towing-supply/supply vessels:
Anchor handling towing supply		6	9	2	---	---	---
Platform supply vessels		---	---	---	---	---	2
Crewboats		---	---	---	1	---	---

Totals		9	12	4	5	1	9

(In thousands) Expected quarterly cash outlay	$	150,519	176,190	70,730	71,848	25,383	74,391(C)

(C) The $74,391 of ‘Thereafter’ vessel construction obligations is expected to be paid out as follows: $49,973 in the remaining quarters of fiscal 2013 and $24,418 during fiscal 2014.

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