Attached files
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8-K - 8K CDI 8-11-2014 - Cal Dive International, Inc. | form8k.htm |
EX-99.2 - 2014 2Q 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
August 11, 2014
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Contact:
Ike Smith
Vice President - Finance
(713) 243-2713
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·
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Backlog: Contracted backlog was $234 million as of June 30, 2014. This compares to backlog of $249 million at December 31, 2013 and $400 million at June 30, 2013. Of this backlog, $161 million relates to international projects with $73 million relating to projects in the U.S. Gulf of Mexico and 64% is expected to be performed during the remainder of 2014.
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·
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Revenues: Second quarter 2014 revenues increased by $0.7 million to $121.7 million compared to the second quarter 2013. Although revenue was relatively unchanged, international revenues increased 17% while domestic revenues decreased 29%, mostly due to unseasonably adverse weather and customer delays in project schedules, as well as lower utilization of the Company's dive support vessels, including the impact of the sale of its surface diving fleet effective May 31, 2014.
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·
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Gross Profit (Loss): Second quarter 2014 gross loss was $17.4 million, a deterioration of $20.0 million compared to gross profit of $2.6 million for the second quarter 2013. The loss is primarily attributable to cost overruns from delays related to unseasonably adverse weather conditions on two of the Company's projects in Mexico, as well as lower utilization in the U.S Gulf of Mexico due to unseasonably adverse weather and customer delays in project schedules.
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·
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·
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Interest Expense: Second quarter 2014 net interest expense increased by $3.3 million to $8.0 million as compared to second quarter 2013, primarily due to higher levels of debt due to working capital requirements in Mexico and higher interest rate margins on outstanding indebtedness.
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·
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Income Tax: The effective tax benefit rate for the second quarter 2014 was 36.8% compared to a tax benefit rate of 38.0% for the second quarter 2013.
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·
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Balance Sheet: As of June 30, 2014, total debt consisted of $86.25 million in convertible notes, $100.0 million under a senior secured second lien term loan and $77.6 million outstanding under a revolving credit facility. Cash and cash equivalents were $2.6 million, for a net debt position of $261.3 million at June 30, 2014, compared to a net debt position of $237.9 million at March 31, 2014 and $200.0 million at December 31, 2013. The increase in net debt is primarily due to the continued working capital needs for the Company's four projects in Mexico. Total debt presented on the consolidated balance sheet at June 30, 2014 is net of a debt discount of $16.6 million on the Company's convertible debt.
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CAL DIVE INTERNATIONAL, INC. and SUBSIDIARIES
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Condensed Consolidated Statements of Operations | ||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
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Three Months Ended
June 30,
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Six Months Ended
June 30, |
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2014
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2013
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2014
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2013
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(unaudited)
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(unaudited)
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||||||||||||||
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Revenues
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$
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121,689
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$
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120,986
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$
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240,793
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$
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201,905
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||||||||
Cost of sales
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139,120 |
118,356
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264,443
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210,792
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Gross profit (loss )
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(17,431
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)
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2,630
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(23,650
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)
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(8,887
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)
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|||||||||
General and administrative expenses
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11,581
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10,802
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21,608
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22,711
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||||||||||||
Provision for doubtful acocunts
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9,508
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-
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9,508
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-
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||||||||||||
Asset impairment
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1,947
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-
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1,947
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125
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||||||||||||
(Gain) on sale of assets, net
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(7,305
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)
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(3,143
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)
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(8,917
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)
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(3,123
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)
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Operating loss
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(33,162
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)
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(5,029
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)
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(47,796
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)
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(28,600
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)
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Interest expense, net
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7,977
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4,630
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13,585
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9,262
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Interest expense - adjustment to conversion feature of convertible debt
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-
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(6,425
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)
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-
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(6,362
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)
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Loss on early extinguishment of debt
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4,652
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-
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4,652
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-
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Other expense, net
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414
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376
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220
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455
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Loss before income taxes
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(46,205
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)
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(3,610
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)
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(66,253
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)
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(31,955
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)
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Income tax benefit
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(17,004
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)
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(1,372
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)
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(23,901
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)
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(10,691
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)
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Net loss
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(29,201
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)
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(2,238
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)
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(42,352
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)
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(21,264
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)
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Loss attributable to noncontrolling interest
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(126
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)
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(570
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)
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(226
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)
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(1,946
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)
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Loss attributable to Cal Dive | $ | (29,075 | ) | $ | (1,668 | ) | $ | (42,126 | ) | $ | (19,318 | ) | ||||
Loss per share attributable to Cal Dive:
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Basic and diluted | $ | (0.31 | ) | $ | (0.02 | ) | $ | (0.44 | ) | $ | (0.21 | ) | ||||
Weighted average shares outstanding:
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||||||||||||||||
Basic and diluted
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95,242
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93,748
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95,108
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93,808
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Other financial data:
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Depreciation and amortization
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$
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13,896
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$
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13,631
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$
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28,256
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$
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27,811
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Non-cash stock compensation expense
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1,493
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1,406
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2,428
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2,854
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Severance
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300
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-
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1,345
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-
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Adjusted EBITDA
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(6,306
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)
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10,202
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(4,306
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)
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3,681
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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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June 30,
2014
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December 31,
2013
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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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2,583
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$
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12,190
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||||
Accounts receivable, net
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199,313
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180,582
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Other current assets
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23,949
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37,271
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Total current assets
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225,845
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230,043
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Net property and equipment
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352,728
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388,580
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Other assets, net
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32,529
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32,059
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Total assets
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$
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611,102
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$
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650,682
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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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93,081
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$
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114,663
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||||
Other current liabilities
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31,940
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33,342
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Current maturities of long-term debt
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247,298
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13,989
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Total current liabilities
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372,319
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161,994
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Long-term debt
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-
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179,464
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Other long-term liabilities
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36,830
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67,207
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Total liabilities
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409,149
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408,665
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Total equity
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201,953
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242,017
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Total liabilities and equity
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$
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611,102
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$
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650,682
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For the Periods Ended June 30, 2014 and 2013
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 items and adjustments in its definition of Adjusted EBITDA outlined below. The Company uses Adjusted EBITDA to measure operational strengths and the performance of its business and not to measure liquidity. Adjusted 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. Adjusted EBITDA should not be considered in isolation or as a substitute for, but instead is supplemental to, income from operations, net income and other income data prepared in accordance with GAAP. Furthermore, Adjusted EBITDA presentations may vary among companies; thus, the Company's Adjusted EBITDA may not be comparable to similarly titled measures of other companies.
The Company believes Adjusted 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 Adjusted EBITDA in communications with lenders, rating agencies and others, concerning financial performance.
The following table presents a reconciliation of income (loss) attributable to Cal Dive to Adjusted EBITDA, which is the most directly comparable GAAP financial measure of the Company's operating results: |
(all amounts in thousands)
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Three Months Ended
June 30,
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Six Months Ended
June 30,
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2014
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2013
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2014
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2013
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||||||||||||
Loss attributable to Cal Dive
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$
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(29,075
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)
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$
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(1,668
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)
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$
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(42,126
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)
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$
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(19,318
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)
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Net interest expense
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7,977
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4,630
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13,585
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9,262
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Interest expense - conversion feature adjustment
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-
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(6,425
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)
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-
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(6,362
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)
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||||||||||
Income tax benefit
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(17,004
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)
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(1,372
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)
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(23,901
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)
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(10,691
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)
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Depreciation & amortization
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13,896
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13,631
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28,256
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27,811
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EBITDA
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$
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(24,206
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)
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$
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8,796
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$
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(24,186
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)
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$
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702
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Non-cash stock compensation expense
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1,493
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1,406
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2,428
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2,854
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Non-cash impairment charges
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1,947
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-
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1,947
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125
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||||||||||||
Loss on debt extinguishment
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4,652
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-
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4,652
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-
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||||||||||||
Provision for doubtful accounts
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9,508
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-
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9,508
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-
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Severance charges
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300
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-
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1,345
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-
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Adjusted EBITDA
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$
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(6,306
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)
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$
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10,202
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$
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(4,306
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)
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$
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3,681
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As of 6/30/14
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Total Debt (1)
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$
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263,850
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||||||||||||||
Less: Cash
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(2,583
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)
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||||||||||||||
Net Debt
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$
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261,267
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(1) Total debt consists of outstanding balances on a revolver, second lien secured term loan and the principal amount of convertible debt.
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