Attached files
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8-K - 8-K CDI 3-4-2014 - Cal Dive International, Inc. | form8k.htm |
EX-99..2 - 4Q2013 EARNINGS PRESENTATION - Cal Dive International, Inc. | exhibit99_2.htm |
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2500 CityWest Boulevard
Suite 2200
Houston, TX 77042
(713) 361-2600
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FOR IMMEDIATE RELEASE
March 4, 2014
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Contact:
Brent Smith
Executive Vice President, Chief Financial Officer and Treasurer
(713) 361-2634
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·
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Backlog: Contracted backlog was $249 million as of December 31, 2013. This compares to backlog of $172 million at December 31, 2012. Of the backlog as of December 31, 2013, $222 million relates to international work and the remainder relates to work in the U.S. Gulf of Mexico, with 93% of the total backlog expected to be performed during 2014.
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·
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Revenues: Fourth quarter 2013 revenues increased by $13.4 million, or 9.2%, to $159.8 million compared to the fourth quarter 2012. The increase in revenues is attributable to increased work in Mexico, offset primarily by a decrease in domestic revenues, in part due to some of the assets working in Mexico being re-positioned from other locations. International revenues accounted for 74% and domestic revenues accounted for 26% of total consolidated revenues for the fourth quarter 2013, compared to 66% international and 34% domestic for the fourth quarter 2012.
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·
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Gross Profit: Fourth quarter 2013 gross profit was $10.5 million, an improvement of $0.4 million, compared to the fourth quarter 2012. The improvement from prior year is attributable to better margins on work in Mexico offset by significantly lower margins domestically due to lower utilization caused by harsher winter weather conditions compared to fourth quarter 2012.
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·
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·
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Interest Expense: Fourth quarter 2013 net interest expense increased by $1.7 million to $6.3 million compared to the fourth quarter 2012, primarily due to higher outstanding balances on the Company's revolving credit facility during the quarter and additional interest on the Company's $20.0 million unsecured debt used to fund the up-front procurement of pipe and other project materials required under the Company's four contracts in Mexico.
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·
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Income Tax: The effective tax benefit rate for the fourth quarter 2013 was 90.2% compared to a tax benefit rate of 4.1% for the fourth quarter 2012. The difference in the effective tax rate from the statutory rate is due to the mix of pre-tax profit and loss between U.S. and international taxing jurisdictions with varying statutory rates. In addition, the low benefit rate for fourth quarter 2012 was due to a $5.2 million non-cash income tax valuation allowance on foreign tax credits and foreign losses and a $1.4 million discrete period tax adjustment.
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·
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Balance Sheet: As of December 31, 2013, total debt consisted of $86.25 million in convertible notes, $30.7 million under a senior secured term loan, $75.3 million outstanding under a revolving credit facility and $20.0 million under an unsecured term loan. Cash and cash equivalents were $12.2 million, for a net debt position of $200.0 million at December 31, 2013, compared to a net debt position of $151.8 million at December 31, 2012. The increase in net debt is primarily due to the working capital needs for the Company's four projects in Mexico. The Company had $125.1 million in unbilled revenue at December 31, 2013, most of which was related to Mexico due to timing of milestone billings. The net secured debt amount that is subject to financial covenants was $93.8 million at December 31, 2013, compared to $65.5 million at December 31, 2012. Total debt presented on the consolidated balance sheet at December 31, 2013 is net of a debt discount of $18.8 million on the Company's convertible debt. As of December 31, 2013 the Company had $46.9 million of remaining borrowing capacity under its revolving credit facility.
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CAL DIVE INTERNATIONAL, INC. and SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts) |
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Three Months Ended
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Twelve Months Ended
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December 31,
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December 31,
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2013
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2012
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2013
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2012
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(unaudited)
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(unaudited)
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Revenues
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$
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159,807
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$
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146,396
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$
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516,958
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$
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464,847
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Cost of sales
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149,310
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136,318
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504,902
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467,135
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Gross profit (loss)
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10,497
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10,078
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12,056
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(2,288
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)
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General and administrative expenses
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10,927
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13,026
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44,778
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52,934
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Asset impairment
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844
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6,224
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21,010
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28,756
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(Gain) on sale of assets, net
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(336
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)
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(18
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)
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(3,773
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)
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(3,363
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)
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Operating loss
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(938
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)
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(9,154
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)
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(49,959
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)
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(80,615
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)
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Interest expense, net
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6,336
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4,643
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21,275
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14,786
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Interest expense - adjustment to conversion feature of convertible debt
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-
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6,218
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(6,362
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)
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(2,139
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)
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Other (income) expense, net
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(1,822
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)
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285
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(1,030
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)
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(178
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)
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Loss before income taxes
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(5,452
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)
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(20,300
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)
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(63,842
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)
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(93,084
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)
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Income tax benefit
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(4,916
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)
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(834
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)
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(26,250
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)
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(24,739
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)
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Net loss
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(536
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)
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(19,466
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)
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(37,592
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)
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(68,345
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)
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Loss attributable to noncontrolling interest
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(20
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)
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(374
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)
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(958
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)
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(3,316
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)
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Loss attributable to Cal Dive
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$
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(516
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)
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$
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(19,092
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)
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$
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(36,634
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)
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$
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(65,029
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)
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Loss per share attributable to Cal Dive:
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Basic and diluted
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$
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(0.01
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)
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$
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(0.21
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)
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$
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(0.39
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)
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$
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(0.70
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)
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Weighted average shares outstanding:
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Basic and diluted
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93,981
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92,757
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93,827
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92,751
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Other financial data:
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Depreciation and amortization
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$
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14,258
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$
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15,037
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$
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55,779
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$
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61,581
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Non-cash stock compensation expense
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1,046
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1,277
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5,357
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7,762
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EBITDA
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17,052
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13,533
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34,175
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23,267
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CAL DIVE INTERNATIONAL, INC. and SUBSIDIARIES
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Condensed Consolidated Balance Sheets
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(in thousands)
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December 31,
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December 31, | ||||||
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2013
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2012
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ASSETS
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(unaudited)
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Current assets:
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Cash
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$
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12,190
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$
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8,343
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Accounts receivable, net
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180,530
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135,205
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Other current assets
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37,323
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36,361
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Total current assets
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230,043
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179,909
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Net property and equipment
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388,580
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423,536
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Other assets, net
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32,059
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27,228
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Total assets
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$
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650,682
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$
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630,673
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LIABILITIES AND EQUITY
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Current liabilities:
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Accounts payable
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$
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114,663
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$
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73,480
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Other current liabilities
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33,342
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37,995
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Current maturities of long-term debt
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13,989
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4,219
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Total current liabilities
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161,994
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115,694
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Long-term debt
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179,464
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133,116
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Derivative liability for conversion feature of convertible debt
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-
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22,456
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Other long-term liabilities
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67,207
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91,132
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Total liabilities
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408,665
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362,398
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Total equity
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242,017
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268,275
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Total liabilities and equity
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$
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650,682
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$
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630,673
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Reconciliation of Non-GAAP Financial Measures
For the Periods Ended December 31, 2013 and 2012
(in thousands)
In addition to net income, one primary measure that the Company uses to evaluate financial performance is earnings before net interest expense, taxes, depreciation and amortization, or EBITDA. The Company includes other non-cash items and adjustments in its definition of EBITDA outlined below. The Company uses EBITDA to measure operational strengths and the performance of its business and not to measure liquidity. EBITDA does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues, and should be considered in addition to, and not as a substitute for, net income and other measures of financial performance reported in accordance with GAAP. Furthermore, EBITDA presentations may vary among companies; thus, the Company's EBITDA may not be comparable to similarly titled measures of other companies.
The Company believes EBITDA is useful as a measurement tool because it helps investors evaluate and compare operating performance from period to period by removing the impact of capital structure (primarily interest charges from outstanding debt) and asset base (primarily depreciation and amortization of vessels) from operating results. The Company's management uses EBITDA in communications with lenders, rating agencies and others, concerning financial performance. |
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Three Months Ended
December 31,
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Twelve Months Ended
December 31,
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2013
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2012
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2013
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2012
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EBITDA (unaudited)
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$
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17,052
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$
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13,533
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$
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34,175
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$
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23,267
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Less: Depreciation & amortization
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14,258
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15,037
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55,779
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61,581
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Less: Income tax benefit
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(4,916
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)
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(834
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)
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(26,250
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)
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(24,739
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)
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Less: Net interest expense
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6,336
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4,643
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21,275
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14,786
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Less: Interest expense - conversion feature adjustment
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-
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6,218
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(6,362
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)
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(2,139
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)
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Less: Non-cash stock compensation expense
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1,046
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1,277
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5,357
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7,762
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Less: Severance charges
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-
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60
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-
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2,289
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Less: Non-cash impairment charges
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844
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6,224
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21,010
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28,756
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Loss attributable to Cal Dive
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$
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(516
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)
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$
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(19,092
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)
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$
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(36,634
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)
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$
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(65,029
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)
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As of 12/31/13
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Total Debt (1)
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$
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212,208
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Less: Cash
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(12,190
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)
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Net Debt
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$
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200,018
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(1) Total debt consists of outstanding balances on a revolver, secured term loan, unsecured term loan and the principal amount of convertible debt.
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