TIDEWATER INC - FORM 8-K - EX-99.1

Attached files

file	filename
8-K - FORM 8-K - TIDEWATER INC	d582530d8k.htm

Exhibit 99.1

LOGO

Tidewater Reports First Quarter Results For Fiscal 2014

NEW ORLEANS, LA. August 6, 2013 — Tidewater Inc. (NYSE:TDW) announced today first quarter net earnings for the period ended June 30, 2013, of $30.1 million, or $0.61 per common share, on revenues of $334.1 million. For the same quarter last year, net earnings were $32.9 million, or $0.65 per common share, on revenues of $294.4 million. The immediately preceding quarter ended March 31, 2013, had net earnings of $46.6 million, or $0.95 per common share, on revenues of $328.3 million.

Net earnings for the June 30, 2013 quarter reflect $4.6 million ($3.3 million after tax, or $0.07 per common share) in non-recurring costs, including $3.7 million ($2.4 million after tax, or $0.05 per common share) of transaction fees associated with the June 2013 acquisition of Troms Offshore Supply AS and a $0.9 million ($0.9 million after tax, or $0.02 per common share) charge related to the settlement of the previously disclosed assessment by the Customs Department of Equatorial Guinea, both of which are included in general and administrative expenses.

Financial results of Troms Offshore Supply AS are included in the current quarter from June 4, 2013, the date of the acquisition, through June 30, 2013.

As previously announced, Tidewater will hold a conference call to discuss June quarterly earnings on Tuesday, August 6, 2013, 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 6, 2013, and will continue until 11:59 p.m. Central time on August 8, 2013. 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 35319935.

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 6, 2013.

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 larger Offshore Service Vessels (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

SOURCE: Tidewater Inc.

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,
		2013		2012
Revenues:
Vessel revenues	$	331,630		290,094
Other operating revenues		2,455		4,354
		334,085		294,448
Costs and expenses:
Vessel operating costs		196,161		161,336
Costs of other operating revenues		2,020		3,523
Vessel operating leases		4,031		4,492
Depreciation and amortization		40,108		35,784
General and administrative		50,480		40,664
Gain on asset dispositions, net		(2,140	)	(838	)
		290,660		244,961
Operating income		43,425		49,487
Other income (expenses):
Foreign exchange loss		(89	)	(1,751	)
Equity in net earnings of unconsolidated companies		4,420		2,363
Interest income and other, net		740		719
Interest and other debt costs		(8,913	)	(7,587	)
		(3,842	)	(6,256	)
Earnings before income taxes		39,583		43,231
Income taxes		9,500		10,375
Net earnings	$	30,083		32,856


Basic earnings per common share	$	0.61		0.65


Diluted earnings per common share	$	0.61		0.65


Weighted average common shares outstanding		49,226,911		50,193,065
Dilutive effect of stock options and restricted stock		331,090		174,686
Adjusted weighted average common shares		49,558,001		50,367,751


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)


ASSETS	June 30, 2013			March 31, 2013
Current assets:
Cash and cash equivalents	$	64,813			40,569
Trade and other receivables, net		467,777			393,438
Marine operating supplies		62,007			62,348
Other current assets		24,576			11,735
Total current assets		619,173			508,090
Investments in, at equity, and advances to unconsolidated companies		49,445			46,047
Properties and equipment:
Vessels and related equipment		4,589,777			4,250,169
Other properties and equipment		66,747			83,779
		4,656,524			4,333,948
Less accumulated depreciation and amortization		1,114,256			1,144,129
Net properties and equipment		3,542,268			3,189,819
Goodwill		341,448			297,822
Other assets		144,708			126,277
Total assets	$	4,697,042			4,168,055


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	75,976			63,602
Accrued expenses		170,784			159,086
Accrued property and liability losses		4,328			4,133
Other current liabilities		40,218			39,808
Total current liabilities		291,306			266,629
Long-term debt		1,475,062			1,000,000
Deferred income taxes		189,266			189,763
Accrued property and liability losses		11,886			10,833
Other liabilities and deferred credits		144,055			139,074

Commitments and Contingencies

Stockholders’ equity:
Common stock of $0.10 par value, 125,000,000 shares authorized, issued 49,507,077 shares at June 30, 2013 and 49,485,832 shares at March 31, 2013		4,951			4,949
Additional paid-in capital		125,872			119,975
Retained earnings		2,471,557			2,453,973
Accumulated other comprehensive loss		(16,913	)		(17,141	)
Total stockholders’ equity		2,585,467			2,561,756
Total liabilities and stockholders’ equity	$	4,697,042			4,168,055

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In thousands)


	Three Months Ended June 30,
		2013	2012
Net earnings	$	30,083	32,856
Other comprehensive income/(loss):
Unrealized gains/(losses) on available-for-sale securities net of tax of $60 and $(336)		111	(624	)
Amortization of loss on derivative contractnet of tax of $63 and $63		117	116
Total comprehensive income	$	30,311	32,348

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)


	Three Months Ended June 30,
		2013		2012
Operating activities:
Net earnings	$	30,083		32,856
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		40,108		35,784
Provision (benefit) for deferred income taxes		(12,151	)	(2,654	)
Gain on asset dispositions, net		(2,140	)	(838	)
Equity in earnings of unconsolidated companies, less dividends		(3,398	)	(1,614	)
Compensation expense - stock-based		5,711		4,359
Excess tax benefit on stock options exercised		(12	)	(49	)
Changes in assets and liabilities, net:
Trade and other receivables		(62,616	)	(9,698	)
Marine operating supplies		1,100		(1,962	)
Other current assets		(11,589	)	(10,127	)
Accounts payable		1,997		18,267
Accrued expenses		11,115		2,636
Accrued property and liability losses		158		(110	)
Other current liabilities		944		219
Other liabilities and deferred credits		876		1,165
Other, net		3,409		846
Net cash provided by operating activities		3,595		69,080
Cash flows from investing activities:
Proceeds from sales of assets		2,161		5,856
Additions to properties and equipment		(156,434	)	(77,432	)
Payments for acquisition, net of cash acquired		(127,737	)	—
Other		(665	)	(860	)
Net cash used in investing activities		(282,675	)	(72,436	)
Cash flows from financing activities:
Debt issuance costs		(2,699	)	—
Principal payment on long-term debt		(97,490	)	—
Debt borrowings		414,262		—
Proceeds from exercise of stock options		1,675		765
Cash dividends		(12,436	)	(12,566	)
Excess tax benefit on stock options exercised		12		49
Stock repurchases		—		(65,028	)
Net cash provided by (used in) financing activities		303,324		(76,780	)
Net change in cash and cash equivalents		24,244		(80,136	)
Cash and cash equivalents at beginning of period		40,569		320,710
Cash and cash equivalents at end of period	$	64,813		240,574

Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest	$	3,980		2,696
Income taxes	$	20,617		12,646
Supplemental disclosure of non-cash investing activities:
Additions to properties and equipment	$	130		7,331
Increase in receivables due to sale of shipyard	$	9,500		—

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, 2013	$	4,949			119,975		2,453,973			(17,141	)		2,561,756
Total comprehensive income		—			—		30,083			228			30,311
Stock option activity		5			1,688		—			—			1,693
Cash dividends declared		—			—		(12,499	)		—			(12,499	)
Retirement of common stock		—			—		—			—			—
Amortization of restricted stock units		—			3,034		—			—			3,034
Amortization/cancellation of restricted stock		(3	)		1,175		—			—			1,172
Balance at June 30, 2013	$	4,951			125,872		2,471,557			(16,913	)		2,585,467


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

The company’s vessel revenues and vessel operating costs and the related percentage of total vessel revenues for the quarters ended June 30, 2013 and 2012 and for the quarter ended March 31, 2013, were as follows:


	Quarter Ended June 30,								Quarter Ended March 31,
(In thousands)	2013		%		2012		%		2013		%
Vessel revenues:
Americas	$	90,244		27%		77,650		27%		82,561		25%
Asia/Pacific		42,956		13%		51,742		18%		44,477		14%
Middle East/North Africa		41,213		13%		32,450		11%		42,884		13%
Sub-Saharan Africa/Europe		157,217		47%		128,252		44%		155,117		48%
	$	331,630		100%		290,094		100%		325,039		100%

Vessel operating costs:
Crew costs	$	93,232		28%		87,304		30%		90,581		28%
Repair and maintenance		48,093		14%		27,224		9%		36,466		11%
Insurance and loss reserves		6,020		2%		5,351		2%		4,223		1%
Fuel, lube and supplies		18,805		6%		17,743		6%		22,458		7%
Other		30,011		9%		23,714		8%		27,941		9%
Total vessel operating costs		196,161		59%		161,336		55%		181,669		56%
Vessel operating margin (A)	$	135,469		41%		128,758		45%		143,370		44%

Note (A): The following table reconciles vessel operating margin as presented above to operating income for the quarters ended June 30, 2013 and 2012 and for the quarter ended March 31, 2013:


	Quarter Ended June 30,						Quarter Ended March 31,
(In thousands)	2013			2012			2013
Vessel operating margin	$	135,469			128,758			143,370
Other marine revenues		2,455			4,354			3,294
Costs of other operating revenues		(2,020	)		(3,523	)		(2,932	)
Vessel operating leases		(4,031	)		(4,492	)		(3,971	)
Depreciation and amortization		(40,108	)		(35,784	)		(38,287	)
General and administrative		(50,480	)		(40,664	)		(46,739	)
Gain on asset dispositions, net		2,140			838			3,839
Operating income	$	43,425			49,487			58,574

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, 2013 and 2012 and for the quarter ended March 31, 2013, were as follows:


	Quarter Ended June 30,												Quarter Ended March 31,
(In thousands)	2013			%			2012			%			2013			%
Vessel operating profit:
Americas	$	20,301			6%			10,192			3%			6,178			2%
Asia/Pacific		10,289			3%			14,908			5%			12,275			4%
Middle East/North Africa		10,123			3%			6,282			2%			12,787			4%
Sub-Saharan Africa/Europe		17,519			5%			27,096			9%			36,863			11%
		58,232			17%			58,478			20%			68,103			21%
Corporate expenses		(16,555	)		(5%	)		(10,467	)		(4%	)		(12,432	)		(4%	)
Gain on asset dispositions, net		2,140			1%			838			<1%			3,839			1%
Other operating income (expenses)		(392	)		(<1%	)		638			<1%			(936	)		(<1%	)
Operating income	$	43,425			13%			49,487			17%			58,574			18%
Foreign exchange (loss) gain		(89	)		(<1%	)		(1,751	)		(1%	)		4,181			1%
Equity in net earnings of unconsolidated companies		4,420			1%			2,363			1%			3,830			1%
Interest income and other, net		740			<1%			719			<1%			693			<1%
Interest and other debt costs		(8,913	)		(3%	)		(7,587	)		(3%	)		(7,827	)		(2%	)
Earnings before income taxes	$	39,583			12%			43,231			15%			59,451			18%

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, 2013 and 2012 and the quarter ended March 31, 2013, were as follows:


	Quarter Ended June 30,					Quarter Ended March 31,
	2013			2012		2013
REVENUE BY VESSEL CLASS (in thousands):
Americas fleet:
Deepwater vessels	$	55,032			36,280		49,916
Towing-supply/supply		27,670			34,352		25,938
Other		7,542			7,018		6,707
Total	$	90,244			77,650		82,561
Asia/Pacific fleet:
Deepwater vessels	$	24,292			25,337		24,327
Towing-supply/supply		17,722			25,500		19,211
Other		942			905		939
Total	$	42,956			51,742		44,477
Middle East/North Africa fleet:
Deepwater vessels	$	15,852			11,284		16,979
Towing-supply/supply		24,497			20,000		25,173
Other		864			1,166		732
Total	$	41,213			32,450		42,884
Sub-Saharan Africa/Europe fleet:
Deepwater vessels	$	87,251			62,615		78,724
Towing-supply/supply		54,860			49,012		58,981
Other		15,106			16,625		17,412
Total	$	157,217			128,252		155,117
Worldwide fleet:
Deepwater vessels	$	182,427			135,516		169,946
Towing-supply/supply		124,749			128,864		129,303
Other		24,454			25,714		25,790
Total	$	331,630			290,094		325,039

UTILIZATION:
Americas fleet:
Deepwater vessels		77.8	%		73.7		80.4
Towing-supply/supply		43.3			53.4		41.9
Other		82.2			80.5		81.0
Total		60.1	%		63.3		59.1
Asia/Pacific fleet:
Deepwater vessels		92.7	%		92.6		83.6
Towing-supply/supply		64.5			54.9		54.5
Other		100.0			58.7		100.0
Total		72.2	%		62.5		62.4
Middle East/North Africa fleet:
Deepwater vessels		91.3	%		93.6		98.6
Towing-supply/supply		72.1			77.2		74.7
Other		44.7			42.2		29.3
Total		73.3	%		75.0		73.4
Sub-Saharan Africa/Europe fleet:
Deepwater vessels		79.3	%		84.1		76.3
Towing-supply/supply		67.6			60.3		73.3
Other		70.2			76.6		78.7
Total		71.8	%		71.3		75.9
Worldwide fleet:
Deepwater vessels		81.2	%		83.1		80.6
Towing-supply/supply		60.8			60.0		61.2
Other		71.5			74.2		75.2
Total		68.8	%		68.4		69.4


	Quarter Ended June 30,				Quarter Ended March 31,
	2013		2012		2013
AVERAGE VESSEL DAY RATES:
Americas fleet:
Deepwater vessels	$	29,786		25,829		29,480
Towing-supply/supply		15,161		14,135		14,330
Other		6,965		5,987		6,132
Total	$	18,977		15,508		17,960
Asia/Pacific fleet:
Deepwater vessels	$	39,291		32,225		37,370
Towing-supply/supply		13,022		14,229		13,976
Other		10,353		9,945		10,432
Total	$	20,749		19,384		21,024
Middle East/North Africa fleet:
Deepwater vessels	$	21,202		18,920		21,259
Towing-supply/supply		12,567		9,812		12,689
Other		4,750		5,056		4,628
Total	$	14,316		11,325		14,583
Sub-Saharan Africa/Europe fleet:
Deepwater vessels	$	27,514		22,643		26,468
Towing-supply/supply		15,386		13,572		14,996
Other		4,883		4,884		5,300
Total	$	15,993		13,113		15,218
Worldwide fleet:
Deepwater vessels	$	28,572		24,406		27,782
Towing-supply/supply		14,338		13,054		14,207
Other		5,496		5,250		5,573
Total	$	16,976		14,275		16,378

The utilization, average day rates and the number of the company’s new vessels (defined as vessels acquired or constructed since calendar year 2000 as part of its new build and acquisition program) for the quarters ended June 30, 2013 and 2012 and the quarter ended March 31, 2013, were as follows:


	Quarter Ended June 30,					Quarter Ended March 31,
	2013			2012		2013
UTILIZATION:
Deepwater vessels:
Platform supply vessels		84.0	%		85.9		82.9
Anchor handling towing supply		95.9			93.7		99.0
Towing-supply/supply		81.7			89.3		84.8
Other		73.3			78.7		79.5
Total		81.2	%		86.2		83.8

AVERAGE VESSEL DAY RATES:
Deepwater vessels:
Platform supply vessels	$	28,689			24,062		27,889
Anchor handling towing supply		29,561			28,908		29,779
Towing-supply/supply		14,595			13,663		14,490
Other		5,843			5,657		6,004
Total	$	17,955			15,466		17,458

AVERAGE VESSEL COUNT:
Deepwater vessels:
Platform supply vessels		69			55		67
Anchor handling towing supply		11			11		11
Towing-supply/supply		103			101		103
Other		53			50		49
Total		236			217		230

The company’s average number of vessels by class and geographic distribution for the quarters ended June 30, 2013 and 2012 and for the quarter ended March 31, 2013:


	Quarter Ended June 30,				Quarter Ended March 31,
	2013		2012		2013
Americas fleet:
Deepwater vessels		27		21		23
Towing-supply/supply		46		50		48
Other		14		16		15
Total		87		87		86
Less stacked vessels		25		23		25
Active vessels		62		64		61
Asia/Pacific fleet:
Deepwater vessels		7		9		9
Towing-supply/supply		24		36		28
Other		1		2		1
Total		32		47		38
Less stacked vessels		6		15		10
Active vessels		26		32		28
Middle East/North Africa fleet:
Deepwater vessels		9		7		9
Towing-supply/supply		30		29		30
Other		4		6		6
Total		43		42		45
Less stacked vessels		3		7		6
Active vessels		40		35		39
Sub-Saharan Africa/Europe fleet:
Deepwater vessels		44		36		43
Towing-supply/supply		58		66		60
Other		48		49		46
Total		150		151		149
Less stacked vessels		10		21		12
Active vessels		140		130		137

ACTIVE OWNED OR CHARTERED VESSELS		268		261		265
Stacked vessels		44		66		53

TOTAL OWNED OR CHARTERED VESSELS		312		327		318
Vessels withdrawn from service		1		2		2
Joint-venture and other		10		10		10
Total		323		339		330

Note (B): Included in total owned or chartered vessels at June 30, 2013 and 2012 and at March 31, 2013, were 41, 66, and 51 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 June 30, 2013, were as follows:


	Non-U.S. Built								U.S. Built
Vessel class and type	Number of Vessels		Total Cost		Invested Through 06/30/13		Remaining Balance 06/30/13		Number of Vessels		Total Cost		Invested Through 06/30/13		Remaining Balance 06/30/13
In thousands, except number of vessels:
Deepwater platform supply vessels		18	$	517,694		87,166		430,528		5		253,615		115,479		138,136
Towing-supply/supply vessels		6		112,907		42,477		70,430		—		—		—		—
Other		3		61,487		48,299		13,188		—		—		—		—
Totals		27	$	692,088		177,942		514,146		5		253,615		115,479		138,136

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		09/13	12/13	03/14	06/14	09/14	Thereafter
Deepwater platform supply vessels		2	1	2	5	3	10
Towing-supply/supply vessels		—	—	—	—	3	3
Other		1	1	—	—	—	1
Totals		3	2	2	5	6	14

(In thousands) Expected quarterly cash outlay	$	101,487	50,374	94,024	97,838	113,925	194,634	(A)

(A) The $194,634 of ‘Thereafter’ vessel construction obligations are expected to be paid out as follows: $92,137 in the remaining quarters of fiscal 2015 and $102,497 during fiscal 2016.

Attached files

Stock widget

Investing forum

TIDEWATER INC Reports