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

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8-K - FORM 8-K - TIDEWATER INC	d393423d8k.htm

Exhibit 99.1


		Press Release

TIDEWATER INC. — Pan-American Life Center — 601 Poydras Street, Suite 1900 — New Orleans, LA 70130 — Telephone (504) 568-1010 — Fax (504) 566-4582

Tidewater Reports First Quarter Results For Fiscal 2013

NEW ORLEANS, LA. August 8, 2012 -- Tidewater Inc. (NYSE:TDW) announced today first quarter net earnings for the period ended June 30, 2012, of $32.9 million, or $0.65 per share, on revenues of $294.4 million. For the same quarter last year, net earnings were $24.6 million, or $0.48 per share, on revenues of $254.6 million. The immediately preceding quarter ended March 31, 2012, had net earnings of $33.6 million, or $0.66 per common share, on revenues of $289.4 million.

As previously announced, Tidewater will hold a conference call to discuss June quarterly earnings on Wednesday, August 8, 2012, at 10:00 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 8, 2012, and will continue until 11:59 p.m. Central time on August 10, 2012. 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 11903641.

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 8, 2012. 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 is the leading provider of larger Offshore Vessel (OSVs) to the global 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.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

(In thousands, except share and per share data)


		Three Months Ended
		June 30,
		2012			2011
Revenues:
Vessel revenues	$		290,094			253,315
Other operating revenues			4,354			1,292
			294,448			254,607
Costs and expenses:
Vessel operating costs			165,828			152,302
Costs of other operating revenues			3,523			1,231
Depreciation and amortization			35,784			33,749
General and administrative			40,664			37,581
Gain on asset dispositions, net			(838	)		(1,717)
			244,961			223,146
Operating income			49,487			31,461
Other income (expenses):
Foreign exchange (loss) gain			(1,751	)		814
Equity in net earnings of unconsolidated companies			2,363			2,489
Interest income and other, net			719			1,190
Interest and other debt costs			(7,587	)		(4,061)
			(6,256	)		432
Earnings before income taxes			43,231			31,893
Income taxes			10,375			7,335
Net earnings	$		32,856			24,558



Basic earnings per common share	$		0.65			0.48



Diluted earnings per common share	$		0.65			0.48



Weighted average common shares outstanding			50,193,065			51,278,261
Dilutive effect of stock options and restricted stock			174,686			315,527
Adjusted weighted average common shares			50,367,751			51,593,788



Cash dividends declared per common share	$		0.25			0.25

TIDEWATER INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and par value data)


	June 30,			March 31,
ASSETS		2012			2012
Current assets:
Cash and cash equivalents	$	240,574			320,710
Trade and other receivables, net		322,978			309,468
Marine operating supplies		55,812			53,850
Other current assets		20,199			10,072
Total current assets		639,563			694,100
Investments in, at equity, and advances to unconsolidated companies		47,691			46,077
Properties and equipment:
Vessels and related equipment		3,984,630			3,952,468
Other properties and equipment		93,612			93,107
		4,078,242			4,045,575
Less accumulated depreciation and amortization		1,139,506			1,139,810
Net properties and equipment		2,938,736			2,905,765
Goodwill		297,822			297,822
Other assets		118,452			117,854
Total assets	$	4,042,264			4,061,618


LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities on long-term debt		60,000			---
Accounts payable		92,675			74,115
Accrued expenses		139,634			134,953
Accrued property and liability losses		3,526			3,636
Other current liabilities		25,321			26,225
Total current liabilities		321,156			238,929
Long-term debt		890,000			950,000
Deferred income taxes		214,586			214,627
Accrued property and liability losses		3,166			3,150
Other liabilities and deferred credits		127,279			128,555

Commitments and Contingencies

Stockholders’ equity:
Common stock of $0.10 par value, 125,000,000 shares authorized, issued 49,820,140 shares at June 30, 2012 and 51,250,995 shares at March 31, 2012		4,982			5,125
Additional paid-in capital		107,754			102,726
Retained earnings		2,393,179			2,437,836
Accumulated other comprehensive loss		(19,838	)		(19,330	)
Total stockholders’ equity		2,486,077			2,526,357
Total liabilities and stockholders' equity	$	4,042,264			4,061,618

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In thousands)


		Three Months Ended
		June 30,
		2012			2011
Net earnings	$		32,856			24,558
Other comprehensive income/(loss):
Unrealized gains/(losses) on available-for-sale securities			(624	)		(21)
Amortization of loss on derivative contract			116			116
Total comprehensive income	$		32,348			24,653

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)


		Three Months Ended
		June 30,
		2012			2011
Operating activities:
Net earnings	$		32,856			24,558
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization			35,784			33,749
Provision (benefit) for deferred income taxes			(2,654	)		(7,908)
Gain on asset dispositions, net			(838	)		(1,717)
Equity in earnings of unconsolidated companies, less dividends			(1,614	)		(1,739)
Compensation expense - stock-based			4,359			2,905
Excess tax benefit on stock options exercised			(49	)		(17)
Changes in assets and liabilities, net:
Trade and other receivables			(9,698	)		(21,190)
Marine operating supplies			(1,962	)		(4,433)
Other current assets			(10,127	)		(8,120)
Accounts payable			18,267			2,708
Accrued expenses			2,636			(292)
Accrued property and liability losses			(110	)		63
Other current liabilities			219			5,575
Other liabilities and deferred credits			1,165			1,620
Other, net			846			756
Net cash provided by operating activities			69,080			26,518
Cash flows from investing activities:
Proceeds from sales of assets			5,856			6,328
Additions to properties and equipment			(77,432	)		(69,652)
Other			(860	)		349
Net cash used in investing activities			(72,436	)		(62,975)
Cash flows from financing activities:
Debt issuance costs			---			(6)
Proceeds from exercise of stock options			765			88
Cash dividends			(12,566	)		(12,939)
Excess tax benefit on stock options exercised			49			17
Stock repurchases			(65,028	)		---
Net cash used in financing activities			(76,780	)		(12,840)
Net change in cash and cash equivalents			(80,136	)		(49,297)
Cash and cash equivalents at beginning of period			320,710			245,720
Cash and cash equivalents at end of period	$		240,574			196,423


Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest	$		2,696			12,223
Income taxes	$		12,646			12,011
Supplemental disclosure of non-cash investing activities:
Additions to properties and equipment	$		7,331			---


TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited) (In thousands)
	Common stock			Additional paid-in capital		Retained earnings			Accumulated other comprehensive loss			Total
Balance at March 31, 2012		$	5,125		102,726		2,437,836			(19,330	)		2,526,357
Total comprehensive income			---		---		32,856			(508	)		32,348
Stock option activity			3		1,354		---			---			1,357
Cash dividends declared			---		---		(12,625	)		---			(12,625)
Retirement of common stock			(140)		---		(64,888	)		---			(65,028)
Amortization of restricted stock units			---		1,829		---			---			1,829
Amortization/cancellation of restricted stock			(6)		1,845		---			---			1,839
Balance at June 30, 2012		$	4,982		107,754		2,393,179			(19,838	)		2,486,077



Balance at March 31, 2011		$	5,188		90,204		2,436,736			(18,184	)		2,513,944
Total comprehensive income			---		---		24,558			95			24,653
Stock option activity			---		1,134		---			---			1,134
Cash dividends declared			---		---		(12,969	)		---			(12,969)
Amortization/cancellation of restricted stock			---		1,381		---			---			1,381
Balance at June 30, 2011		$	5,188		92,719		2,448,325			(18,089	)		2,528,143

The company’s vessel revenues and vessel operating expenses and the related percentage of total vessel revenues for the quarters ended June 30, 2012 and 2011 and for the quarter ended March 31, 2012 were as follows:


		Quarter Ended June 30,								Quarter Ended March 31,
(In thousands)		2012		%		2011		%		2012		%
Vessel revenues:
Americas	$		77,650		27%		80,677		32%		79,219		27%
Asia/Pacific			51,742		18%		35,499		14%		48,207		17%
Middle East/North Africa			32,450		11%		26,057		10%		30,783		11%
Sub-Saharan Africa/Europe			128,252		44%		111,082		44%		130,046		45%
	$		290,094		100%		253,315		100%		288,255		100%


Vessel operating costs:
Crew costs	$		87,304		30%		81,124		32%		87,286		33%
Repair and maintenance			27,224		9%		22,060		9%		27,368		9%
Insurance and loss reserves			5,351		2%		5,297		2%		2,910		1%
Fuel, lube and supplies			17,743		6%		16,367		6%		22,017		8%
Vessel operating leases			4,492		2%		4,492		2%		4,492		2%
Other			23,714		8%		22,962		9%		24,634		9%
Total vessel operating costs			165,828		57%		152,302		60%		168,707		59%
Vessel operating margin (A)	$		124,266		43%		101,013		40%		119,548		42%

Note (A): The following table reconciles vessel operating margin as presented above to operating income for the quarters ended June 30, 2012 and 2011 and March 31, 2012:


		Quarter Ended June 30,				Quarter Ended March 31,
(In thousands)		2012		2011		2012
Vessel operating margin	$		124,266		101,013		119,548
Other marine revenues			4,354		1,292		1,140
Costs of other operating revenues			(3,523)		(1,231)		(1,915)
Depreciation and amortization			(35,784)		(33,749)		(35,585)
General and administrative			(40,664)		(37,581)		(40,791)
Gain on asset dispositions, net			838		1,717		3,986
Operating income	$		49,487		31,461		46,383

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, 2012 and 2011 and March 31, 2012 were as follows:


		Quarter Ended June 30,												Quarter Ended March 31,
(In thousands)		2012			%			2011			%			2012			%
Vessel operating profit:
Americas	$		10,192			3%			11,854			5%			16,157			6%
Asia/Pacific			14,908			5%			5,270			2%			9,002			3%
Middle East/North Africa			6,282			2%			28			<1%			1,411			<1%
Sub-Saharan Africa/Europe			27,096			9%			22,224			9%			27,869			10%
			58,478			20%			39,376			15%			54,439			19%
Corporate expenses			(10,467	)		(4%	)		(9,521	)		(4%	)		(10,525	)		(4%)
Gain on asset dispositions, net			838			<1%			1,717			1%			3,986			1%
Other operating income (expenses)			638			<1%			(111	)		(<1%	)		(1,517	)		(1%)
Operating income	$		49,487			17%			31,461			12%			46,383			16%
Foreign exchange (loss) gain			(1,751	)		(1%	)		814			<1%			2,574			1%
Equity in net earnings of unconsolidated companies			2,363			1%			2,489			1%			3,614			1%
Interest income and other, net			719			<1%			1,190			<1%			1,137			<1%
Interest and other debt costs			(7,587	)		(3%	)		(4,061	)		(2%	)		(7,454	)		(3%)
Earnings before income taxes	$		43,231			15%			31,893			13%			46,254			16%

The company’s revenues, vessel utilization percentages and average day rates by vessel class and in total for the quarters ended June 30, 2012 and 2011 and March 31, 2012 were as follows:


		Quarter Ended June 30,					Quarter Ended March 31,
		2012			2011		2012
REVENUE BY VESSEL CLASS (in thousands):
Americas fleet:
Deepwater vessels	$		36,280			36,405		35,045
Towing-supply/supply			34,352			35,686		35,596
Other			7,018			8,586		8,578
Total	$		77,650			80,677		79,219
Asia/Pacific fleet:
Deepwater vessels	$		25,337			15,929		26,857
Towing-supply/supply			25,500			18,444		20,197
Other			905			1,126		1,153
Total	$		51,742			35,499		48,207
Middle East/North Africa fleet:
Deepwater vessels	$		11,284			10,751		11,331
Towing-supply/supply			20,000			13,474		18,034
Other			1,166			1,832		1,418
Total	$		32,450			26,057		30,783
Sub-Saharan Africa/Europe fleet:
Deepwater vessels	$		62,615			38,506		64,392
Towing-supply/supply			49,012			52,626		48,162
Other			16,625			19,950		17,492
Total	$		128,252			111,082		130,046
Worldwide fleet:
Deepwater vessels	$		135,516			101,591		137,625
Towing-supply/supply			128,864			120,230		121,989
Other			25,714			31,494		28,641
Total	$		290,094			253,315		288,255


UTILIZATION:
Americas fleet:
Deepwater vessels			73.7	%		70.8		75.9
Towing-supply/supply			53.4			43.3		53.1
Other			80.5			70.5		69.4
Total			63.3	%		54.3		61.4
Asia/Pacific fleet:
Deepwater vessels			92.6	%		71.1		95.3
Towing-supply/supply			54.9			42.5		43.1
Other			58.7			100.0		100.0
Total			62.5	%		51.1		55.9
Middle East/North Africa fleet:
Deepwater vessels			93.6	%		76.3		100.0
Towing-supply/supply			77.2			57.6		73.3
Other			42.2			63.2		50.0
Total			75.0	%		61.6		74.4
Sub-Saharan Africa/Europe fleet:
Deepwater vessels			84.1	%		81.6		84.0
Towing-supply/supply			60.3			56.8		55.0
Other			76.6			84.1		75.5
Total			71.3	%		70.1		68.4
Worldwide fleet:
Deepwater vessels			83.1	%		75.7		84.9
Towing-supply/supply			60.0			50.3		55.0
Other			74.2			79.3		72.6
Total			68.4	%		61.5		65.4


		Quarter Ended June 30,					Quarter Ended March 31,
		2012			2011		2012
AVERAGE VESSEL DAY RATES:
Americas fleet:
Deepwater vessels	$		25,829			26,360		25,911
Towing-supply/supply			14,135			14,031		13,704
Other			5,987			6,044		6,791
Total	$		15,508			15,094		15,197
Asia/Pacific fleet:
Deepwater vessels	$		32,225			21,436		30,982
Towing-supply/supply			14,229			12,519		13,751
Other			9,945			6,189		6,335
Total	$		19,384			14,801		19,148
Middle East/North Africa fleet:
Deepwater vessels	$		18,920			18,147		17,788
Towing-supply/supply			9,812			7,738		8,992
Other			5,056			5,302		5,194
Total	$		11,325			9,726		10,558
Sub-Saharan Africa/Europe fleet:
Deepwater vessels	$		22,643			20,399		23,254
Towing-supply/supply			13,572			13,228		13,894
Other			4,884			5,008		4,993
Total	$		13,113			11,278		13,353
Worldwide fleet:
Deepwater vessels	$		24,406			22,065		24,465
Towing-supply/supply			13,054			12,349		12,790
Other			5,250			5,310		5,485
Total	$		14,275			12,496		14,140

The utilization, average day rates and the number of active vessels (excludes stacked vessels) 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 quarters ended June 30, 2012 and 2011 and March 31, 2012 were as follows:
		Quarter Ended June 30,					Quarter Ended March 31,
		2012			2011		2012
UTILIZATION:
Americas fleet:
New vessels			85.3	%		86.8		87.3
Traditional vessels			41.8			35.1		41.3
Total			63.3	%		54.3		61.4
Asia/Pacific fleet:
New vessels			93.6	%		80.8		81.0
Traditional vessels			---			16.8		10.4
Total			62.5	%		51.1		55.9
Middle East/North Africa fleet:
New vessels			89.5	%		69.1		83.9
Traditional vessels			46.0			54.3		55.9
Total			75.0	%		61.6		74.4
Sub-Saharan Africa/Europe fleet:
New vessels			83.7	%		88.0		82.2
Traditional vessels			31.6			33.8		32.1
Total			71.3	%		70.1		68.4
Worldwide fleet:
New vessels			86.2	%		84.4		83.2
Traditional vessels			33.0			34.8		35.7
Total			68.4	%		61.5		65.4


		Quarter Ended June 30,				Quarter Ended March 31,
		2012		2011		2012
AVERAGE VESSEL DAY RATES:
Americas fleet:
New vessels	$		19,119		18,849		19,096
Traditional vessels			8,318		9,587		8,851
Total	$		15,508		15,094		15,197
Asia/Pacific fleet:
New vessels	$		19,384		16,716		20,247
Traditional vessels			---		4,232		3,642
Total	$		19,384		14,801		19,148
Middle East/North Africa fleet:
New vessels	$		12,388		12,496		11,657
Traditional vessels			7,186		6,259		7,377
Total	$		11,325		9,726		10,558
Sub-Saharan Africa/Europe fleet:
New vessels	$		13,680		11,907		14,098
Traditional vessels			8,331		7,970		8,353
Total	$		13,113		11,278		13,353
Worldwide fleet:
New vessels	$		15,466		14,091		15,658
Traditional vessels			8,121		7,987		8,226
Total	$		14,275		12,496		14,140


AVERAGE VESSEL COUNT (EXCLUDING STACKED VESSELS):
Americas fleet:
New vessels			43		39		41
Traditional vessels			21		28		24
Total			64		67		65
Asia/Pacific fleet:
New vessels			31		28		32
Traditional vessels			1		4		1
Total			32		32		33
Middle East/North Africa fleet:
New vessels			27		24		27
Traditional vessels			8		16		9
Total			35		40		36
Sub-Saharan Africa/Europe fleet:
New vessels			115		103		113
Traditional vessels			15		24		18
Total			130		127		131
Worldwide fleet:
New vessels			216		194		213
Traditional vessels			45		72		52
Total			261		266		265

The company’s average number of vessels by class and geographic distribution for the quarters ended June 30, 2012 and 2011 and for the quarter ended March 31, 2012 were as follows:


	Quarter Ended June 30,				Quarter Ended March 31,
	2012		2011		2012
Americas fleet:
Deepwater vessels		21		21		20
Towing-supply/supply		50		65		53
Other		16		22		20
Total		87		108		93
Less stacked vessels		23		41		28
Active vessels		64		67		65
Asia/Pacific fleet:
Deepwater vessels		9		11		10
Towing-supply/supply		36		39		37
Other		2		2		2
Total		47		52		49
Less stacked vessels		15		20		16
Active vessels		32		32		33
Middle East/North Africa fleet:
Deepwater vessels		7		9		7
Towing-supply/supply		29		33		30
Other		6		6		6
Total		42		48		43
Less stacked vessels		7		8		7
Active vessels		35		40		36
Sub-Saharan Africa/Europe fleet:
Deepwater vessels		36		26		36
Towing-supply/supply		66		77		69
Other		49		51		52
Total		151		154		157
Less stacked vessels		21		27		26
Active vessels		130		127		131

ACTIVE OWNED OR CHARTERED VESSELS		261		266		265
Stacked vessels (B)		66		96		77

TOTAL OWNED OR CHARTERED VESSELS (B)		327		362		342
Vessels withdrawn from service		2		4		2
Joint-venture and other		10		10		10
Total		339		376		354

Note (B): The company had 66, 98 and 67 actual stacked vessels at June 30, 2012 and 2011 and at March 31, 2012, respectively. 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, 2012 were as follows:


	International Built								U.S. Built
Vessel class and type	Number of Vessels		Total Cost		Invested Through 6/30/12		Remaining Balance 06/30/12		Number of Vessels		Total Cost		Invested Through 6/30/12		Remaining Balance 06/30/12
In thousands, except number of vessels:
Deepwater vessels:
Platform supply vessels		15	$	421,701		137,067		284,634		3		147,176		57,307		89,869
Towing-supply/supply vessels:
Anchor handling towing supply		1		24,031		19,142		4,889		---		---		---		---
Platform supply vessels		2		50,391		28,094		22,297		---		---		---		---
Crewboats		5		22,394		11,864		10,530		---		---		---		---
Totals		23	$	518,517		196,167		322,350		3		147,176		57,307		89,869

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 vessel commitments as discussed above:


	Quarter Period Ended
Vessel class and type	09/12		12/12		03/13		06/13		09/13		Thereafter
Deepwater vessels:
Platform supply vessels		4		1		2		---		1		10
Towing-supply/supply vessels:
Anchor handling towing supply		1		---		---		---		---		---
Platform supply vessels		---		---		---		---		1		1
Crewboats		---		---		2		2		1		---
Totals		5		1		4		2		3		11


(In thousands)
Expected quarterly cash outlay	$	84,234		55,549		32,893		24,344		17,277		197,922	(C)

Note (C): The $197,922 of ‘Thereafter’ vessel construction obligations is expected to be paid out as follows: $61,035 in the remaining quarters of fiscal 2014 and $136,887 during fiscal 2015.

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