TIDEWATER INC - FORM 8-K - EX-99.1

Attached files

file	filename
8-K - FORM 8-K - TIDEWATER INC	tdw-8k_20170207.htm

Exhibit 99.1

Tidewater Reports Third Quarter Results For Fiscal 2017

NEW ORLEANS, LA. February 7, 2017 — Tidewater Inc. (NYSE:TDW) announced today a third quarter net loss for the period ended December 31, 2016, of $297.7 million, or $6.32 per common share, on revenues of $129.2 million. For the same quarter last year, net loss was $19.5 million, or $0.42 per common share, on revenues of $218.2 million. The immediately preceding quarter ended September 30, 2016, had a net loss of $178.5 million, or $3.79 per common share, on revenues of $143.7 million.

Included in the net loss for the quarter ended December 31, 2016 were the following:

•

$253.4 million ($253.4 million after-tax, or $5.38 per share) in non-cash asset impairment charges that resulted from impairment reviews undertaken during the December 2016 quarter.

•

$3.0 million ($3.0 million after-tax, or $0.06 per share) of foreign exchange gains resulting primarily from the weakening of the Norwegian kroner on liabilities relative to the U.S. dollar.

Included in the net loss for the prior fiscal year’s quarter ended December 31, 2015 were the following:

•

$15.1 million ($12.3 million after-tax, or $0.26 per share) in non-cash asset impairment charges that resulted from impairment reviews undertaken during the December 2015 quarter.

•

$4.1 million ($4.1 million after-tax, or $0.09 per share) of foreign exchange losses which is included in Equity in net earnings (losses) of unconsolidated companies and related to our Angola joint venture, Sonatide.

Included in the net loss for the preceding quarter ended September 30, 2016 were the following:

•

$129.6 million ($129.6 million after-tax, or $2.75 per share) in non-cash asset impairment charges that resulted from impairment reviews undertaken during the September 2016 quarter.

•

$2.5 million ($2.2 million after-tax, or $0.05 per share) of foreign exchange losses resulting primarily from the strengthening of the Norwegian kroner on liabilities relative to the U.S. dollar.

•

$0.6 million ($0.6 million after-tax, or $0.01 per share) of foreign exchange gains which is included in Equity in net earnings (losses) of unconsolidated companies and related to our Angola joint venture, Sonatide.

Income tax expense largely reflects tax liabilities in certain jurisdictions that levy taxes on bases other than pre-tax profitability (so called “deemed profit” regimes.)

Status of Discussions with Lenders and Noteholders

The decrease in oil and gas prices that began in the second half of fiscal 2015 and continued throughout fiscal 2016 has led to materially lower levels of spending for offshore exploration and development by the company’s customers globally. In addition, newly constructed vessels have been delivered over the last several years, exacerbating weak vessel utilization. With reduced demand for offshore support vessels along with a higher number of newer generation vessels, the company has experienced a significant decline in the utilization of its vessels, average day rates received and vessel revenue. The company has implemented a number of significant cost reduction measures to mitigate the effects of significantly lower vessel revenue and, given the currently challenging offshore support vessel market and business outlook, continues its efforts to reduce its operating costs and preserve its liquidity.

At June 30, 2016, September 30, 2016 and December 31, 2016, the company did not meet the 3.0x minimum interest coverage ratio covenant (the “minimum interest coverage ratio requirement”) contained in its Revolving Credit and Term Loan Agreement (“Bank Loan Agreement”), the Troms Offshore Debt and the 2013 Senior Note Agreement (the “2013 Note Agreement”). Failure to meet the minimum interest coverage ratio requirement would have resulted in covenant noncompliance; however, as discussed in more detail below, limited waivers were received. Without these limited waivers, the respective lenders and/or the noteholders would have had the ability to declare the company to be in default of the Bank Loan Agreement, the Troms Offshore Debt and/or the 2013 Note Agreement, as applicable, and accelerate the indebtedness thereunder, the effect of which would be to likewise cause the company’s other Senior Notes, which were issued in 2010 and 2011, to be in default.

The company’s bank loans and its notes are linked together by cross-default provisions, such that if either the lenders or the noteholders declare the loans or notes to be in default, the other indebtedness likewise will be in default, and all of the debt at that time may be accelerated if the majority of lenders or noteholders under the respective debt agreements elect to accelerate. If the company is not in compliance with covenants set forth in the agreements evidencing these debt obligations, and such non-compliance is not waived, then the holders of a majority of loans may declare the bank loans to be in default, and the holders of a majority in principal amount of any of the three classes of the company’s notes may declare that class of notes to be in default. In such event, all of our indebtedness would be accelerated, and the company will not have sufficient liquidity to repay those accelerated amounts. The decision as to whether to accelerate the debt upon the company’s non-compliance with the debt covenants lies with the lenders and noteholders.

The company continues to be actively engaged with its lenders and noteholders with respect to the potential restructuring of the company’s various debt arrangements. It is the goal of the company that any new debt arrangements would provide the company with both sufficient liquidity and a covenant package that will allow the company to operate its business under current market conditions and until those conditions improve without a material risk of a future default of its debt agreements. However, no assurance can be given that these restructuring negotiations will be successfully concluded. Moreover, under all three of the most likely scenarios - a restructuring of the company’s indebtedness outside of bankruptcy; a negotiated restructuring of the company’s indebtedness under the protection of Chapter 11 of the United States Bankruptcy Code; or a Chapter 11 reorganization in the absence of a negotiated restructuring - it is likely that the shareholders’ ownership interests will, at a minimum, be significantly diluted.

In order for the company, its lenders and its noteholders to reach agreement on the terms of restructured debt arrangements, the company expects that it will have to provide collateral to secure some or all of the Bank Loan Agreement, the Troms Offshore Debt and the Senior Notes, reduce the overall level of its indebtedness to its lenders and noteholders, accept a reduction in total borrowing capacity, pay a higher rate of interest, and issue some form of equity or equity linked instruments to the lenders and noteholders that would substantially reduce

the ownership interest of the shareholders.

The company has previously reported that the report of the company's independent registered public accounting firm that accompanied the company’s audited consolidated financial statements for the fiscal year ended March 31, 2016 (the “audit opinion”) contained an explanatory paragraph regarding the company’s ability to continue as a going concern. The inability of the company to obtain a clean audit opinion was an independent event of default under the Bank Loan Agreement and the Troms Offshore Debt that, in the absence of a waiver, would have allowed the lenders to accelerate the indebtedness thereunder, the effect of which would have been to likewise cause all of the company’s Senior Notes to be in default.

As previously reported, the company was able to obtain limited waivers from the necessary lenders which waived the unqualified audit opinion requirement and/or waived the minimum interest coverage ratio requirement until January 27, 2017. The most recent limited waiver, which took effect on January 27, 2017, has extended the waiver of the unqualified audit opinion requirement and/or waived the minimum interest coverage ratio requirement until March 3, 2017.

The company’s unaudited condensed consolidated financial statements as of and for the quarter and nine months ended December 31, 2016 were prepared assuming the company would continue as a going concern, which contemplates continuity of operations, realization of assets and the satisfaction of liabilities in the normal course of business for the twelve month period following the issuance date of these consolidated financial statements.

Tidewater will hold a conference call to discuss December quarterly earnings on Wednesday, February 8, 2017, 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 February 8, 2017, and will continue until 11:59 p.m. Central time on February 10, 2017. 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 44214294.

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 March 8, 2017.

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 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 (LOSS)

(Unaudited)

(In thousands, except share and per share data)

	Quarter Ended						Nine Months Ended
	December 31,						December 31,
	2016			2015			2016			2015
Revenues:
Vessel revenues	$	125,120			212,908			426,911			775,352
Other operating revenues		4,095			5,283			13,951			19,536
		129,215			218,191			440,862			794,888
Costs and expenses:
Vessel operating costs		82,358			125,094			278,326			462,987
Costs of other operating revenues		2,714			3,778			10,040			15,624
General and administrative		34,151			35,598			104,152			116,837
Vessel operating leases		8,441			8,441			25,323			25,325
Depreciation and amortization		41,302			45,422			129,699			137,058
Gain on asset dispositions, net		(6,139	)		(5,883	)		(18,035	)		(19,345	)
Asset impairments		253,422			15,141			419,870			61,771
Restructuring charge		—			—			—			7,586
		416,249			227,591			949,375			807,843
Operating loss		(287,034	)		(9,400	)		(508,513	)		(12,955	)
Other income (expenses):
Foreign exchange gain (loss)		2,970			(469	)		(2,302	)		(3,758	)
Equity in net earnings (losses) of unconsolidated companies		1,557			(1,710	)		2,869			(7,070	)
Interest income and other, net		1,437			609			3,605			1,754
Interest and other debt costs, net		(18,587	)		(13,312	)		(54,018	)		(39,741	)
		(12,623	)		(14,882	)		(49,846	)		(48,815	)
Loss before income taxes		(299,657	)		(24,282	)		(558,359	)		(61,770	)
Income tax (benefit) expense		(2,884	)		(4,679	)		4,680			16,996
Net Loss	$	(296,773	)		(19,603	)		(563,039	)		(78,766	)
Less: Net income (loss) attributable to noncontrolling interests		903			(94	)		2,224			(370	)
Net loss attributable to Tidewater Inc.	$	(297,676	)		(19,509	)		(565,263	)		(78,396	)
Basic loss per common share	$	(6.32	)		(0.42	)		(12.01	)		(1.67	)
Diluted loss per common share	$	(6.32	)		(0.42	)		(12.01	)		(1.67	)
Weighted average common shares outstanding		47,068,079			46,943,705			47,067,887			46,956,041
Dilutive effect of stock options and restricted stock		—			—			—			—
Adjusted weighted average common shares		47,068,079			46,943,705			47,067,887			46,956,041

TIDEWATER INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and par value data)

	December 31,			March 31,
ASSETS	2016			2016
Current assets:
Cash and cash equivalents	$	649,804			678,438
Trade and other receivables, net		174,335			228,113
Due from affiliate		287,592			338,595
Marine operating supplies		30,720			33,413
Other current assets		22,053			44,755
Total current assets		1,164,504			1,323,314
Investments in, at equity, and advances to unconsolidated companies		42,516			37,502
Properties and equipment:
Vessels and related equipment		4,204,048			4,666,749
Other properties and equipment		77,880			92,065
		4,281,928			4,758,814
Less accumulated depreciation and amortization		1,272,521			1,207,523
Net properties and equipment		3,009,407			3,551,291
Other assets		98,772			71,686
Total assets	$	4,315,199			4,983,793

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	50,754			49,130
Accrued expenses		67,412			91,611
Due to affiliate		132,836			187,971
Accrued property and liability losses		3,574			3,321
Current portion of long-term debt		2,036,060			2,045,516
Other current liabilities		50,274			74,825
Total current liabilities		2,340,910			2,452,374
Deferred income taxes		56,375			34,841
Accrued property and liability losses		11,113			9,478
Other liabilities and deferred credits		159,237			181,546

Commitments and Contingencies

Equity:
Common stock of $0.10 par value, 125,000,000 shares authorized, issued 47,068,450 shares at December 31, 2016 and 47,067,715 shares at March 31, 2016		4,707			4,707
Additional paid-in capital		171,018			166,604
Retained earnings		1,570,027			2,135,075
Accumulated other comprehensive loss		(6,446	)		(6,866	)
Total stockholders’ equity		1,739,306			2,299,520
Noncontrolling Interests		8,258			6,034
Total equity		1,747,564			2,305,554
Total liabilities and equity	$	4,315,199			4,983,793

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)

(In thousands)

	Quarter Ended						Nine Months Ended
	December 31,						December 31,
	2016			2015			2016			2015
Net loss	$	(296,773	)		(19,603	)		(563,039	)		(78,766	)
Other comprehensive income (loss):
Unrealized gains (losses) on available for sale securities, net of tax of $0, $0, $0 and $0		(73	)		212			207			(467	)
Amortization of loss on derivative contract, net of tax of $0, $0, $0 and $0		70			180			213			538
Change in other benefit plan minimum liability, net of tax of $0, $0, $0 and $0		—			—			—			70
Total comprehensive loss	$	(296,776	)		(19,211	)		(562,619	)		(78,625	)

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

	Nine Months Ended
	December 31,
	2016			2015
Operating activities:
Net loss	$	(563,039	)		(78,766	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		129,699			137,058
Provision for deferred income taxes		—			192
Gain on asset dispositions, net		(18,035	)		(19,345	)
Asset impairments		419,870			61,771
Equity in earnings (losses) of unconsolidated companies, less dividends		(2,551	)		22,087
Compensation expense - stock-based		4,166			9,960
Changes in assets and liabilities, net:
Trade and other receivables		53,778			38,726
Changes in due to/from affiliate, net		(4,132	)		68,177
Marine operating supplies		2,693			9,786
Other current assets		(6,065	)		1,711
Accounts payable		1,341			6,862
Accrued expenses		(27,954	)		(51,068	)
Accrued property and liability losses		253			(226	)
Other current liabilities		(22,798	)		(17,239	)
Other liabilities and deferred credits		(4,541	)		2,406
Other, net		(3,014	)		(699	)
Net cash provided by (used in) operating activities		(40,329	)		191,393
Cash flows from investing activities:
Proceeds from sales of assets		12,333			8,218
Additions to properties and equipment		(17,144	)		(152,225	)
Refunds from cancelled vessel construction contracts		25,565			36,190
Net cash provided by (used in) investing activities		20,754			(107,817	)
Cash flows from financing activities:
Principal payment on long-term debt		(7,337	)		(109,163	)
Debt borrowings		—			31,338
Cash dividends		—			(35,378	)
Other		(1,722	)		(961	)
Net cash used in financing activities		(9,059	)		(114,164	)
Net change in cash and cash equivalents		(28,634	)		(30,588	)
Cash and cash equivalents at beginning of period		678,438			78,568
Cash and cash equivalents at end of period	$	649,804			47,980
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest, net of amounts capitalized	$	62,469			47,608
Income taxes	$	24,749			38,208
Supplemental disclosure of non-cash investing activities:
Additions to properties and equipment	$	5,330			146

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

(In thousands)

									Accumulated
				Additional					other			Non
	Common			paid-in		Retained			comprehensive			controlling
	stock			capital		earnings			loss			interest			Total
Balance at March 31, 2016	$	4,707			166,604		2,135,075			(6,866	)		6,034			2,305,554
Total comprehensive loss		—			—		(565,263	)		420			2,224			(562,619	)
Stock option activity		—			877		—			—			—			877
Cancellation of restricted stock awards		—			—		215			—			—			215
Amortization/cancellation of restricted stock units		—			3,537		—			—			—			3,537
Balance at December 31, 2016	$	4,707			171,018		1,570,027			(6,446	)		8,258			1,747,564

Balance at March 31, 2015	$	4,703			159,940		2,330,223			(20,378	)		6,227			2,480,715
Total comprehensive loss		—			—		(78,396	)		141			(370	)		(78,625	)
Stock option activity		—			609		—			—			—			609
Cash dividends declared ($.75 per share)		—			—		(34,965	)		—			—			(34,965	)
Amortization of restricted stock units		1			7,843		—			—			—			7,844
Amortization/cancellation of restricted stock awards		(7	)		361		—			—			—			354
Balance at December 31, 2015	$	4,697			168,753		2,216,862			(20,237	)		5,857			2,375,932

The company’s vessel revenues and vessel operating costs and the related percentage of total vessel revenues for the quarters and the nine-month periods ended December 31, 2016 and 2015 and for the quarter ended September 30, 2016, were as follows:

	Quarter Ended December 31,										Nine Months Ended December 31,										Quarter Ended September 30,
(In thousands)	2016		%			2015		%			2016		%			2015		%			2016		%
Vessel revenues:
Americas	$	45,577		36	%		75,963		36	%		159,310		37	%		279,345		36	%		53,125		38	%
Asia/Pacific		5,586		4	%		19,144		9	%		19,617		5	%		79,254		10	%		6,110		4	%
Middle East (A)		20,647		17	%		26,256		12	%		68,323		16	%		87,193		11	%		23,474		17	%
Africa/Europe (A)		53,310		43	%		91,545		43	%		179,661		42	%		329,560		43	%		56,652		41	%
Total vessel revenues	$	125,120		100	%		212,908		100	%		426,911		100	%		775,352		100	%		139,361		100	%
Vessel operating costs:
Crew costs	$	43,384		35	%		71,270		33	%		148,642		35	%		247,670		32	%		49,370		35	%
Repair and maintenance		13,214		10	%		14,811		7	%		43,183		10	%		80,593		10	%		13,440		10	%
Insurance and loss reserves		2,142		2	%		1,689		1	%		11,775		2	%		9,815		1	%		2,637		2	%
Fuel, lube and supplies		7,782		6	%		16,369		8	%		28,730		7	%		51,626		7	%		10,176		7	%
Other		15,836		13	%		20,955		10	%		45,996		11	%		73,283		10	%		11,471		8	%
Total vessel operating costs		82,358		66	%		125,094		59	%		278,326		65	%		462,987		60	%		87,094		62	%
Vessel operating margin (B)	$	42,762		34	%		87,814		41	%		148,585		35	%		312,365		40	%		52,267		38	%

Note (A): At the beginning of fiscal 2017 the company’s operations in the Mediterranean Sea (based in Egypt) were transitioned from the company’s previously disclosed Middle East/North Africa operations and included with the company’s previously disclosed Sub-Saharan Africa/Europe operations as a result of management realignments. As such, the company now discloses these new segments as Middle East and Africa/Europe, respectively. The company’s Americas and Asia/Pacific segments are not affected by this change. The new segment alignment is consistent with the company’s chief operating decision maker’s review of operating results for the purpose of allocating resources and assessing performance. Fiscal 2016 amounts have been recast to conform to the new segment alignment.

Note (B): The following table reconciles vessel operating margin as presented above to operating profit (loss) for the quarters and nine-month periods ended December 31, 2016 and 2015 and for the quarter ended September 30, 2016:

	Quarter Ended December 31,						Nine Months Ended December 31,						Quarter Ended September 30,
(In thousands)	2016			2015			2016			2015			2016
Vessel operating margin	$	42,762			87,814			148,585			312,365			52,267
General and administrative expenses - vessel operations		(20,608	)		(27,686	)		(68,861	)		(88,994	)		(22,337	)
Vessel operating leases		(8,441	)		(8,441	)		(25,323	)		(25,325	)		(8,441	)
Depreciation and amortization - vessel operations		(39,882	)		(42,424	)		(124,232	)		(128,001	)		(41,909	)
Vessel operating profit (loss)	$	(26,169	)		9,263			(69,831	)		70,045			(20,420	)

The company’s other operating profit (loss) for the quarters and nine-month periods ended December 31, 2016 and 2015 and for the quarter ended September 30, 2016, consists of the following:

	Quarter Ended December 31,						Nine Months Ended December 31,						Quarter Ended September 30,
(In thousands)	2016			2015			2016			2015			2016
Other operating revenues	$	4,095			5,283			13,951			19,536			4,361
Costs of other marine revenues		(2,714	)		(3,778	)		(10,040	)		(15,624	)		(3,423	)
General and administrative expenses - other operating activities		(410	)		(762	)		(1,659	)		(2,747	)		(611	)
Depreciation and amortization - other operating activities		(855	)		(1,369	)		(3,575	)		(4,285	)		(1,339	)
Other operating profit (loss)	$	116			(626	)		(1,323	)		(3,120	)		(1,012	)

The company’s operating loss and other components of loss before income taxes and the related percentage of total revenues for the quarters and nine-month periods ended December 31, 2016 and 2015 and for the quarter ended September 30, 2016, were as follows:

	Quarter Ended												Nine Months Ended												Quarter Ended
	December 31,												December 31,												September 30,
(In thousands)	2016			%			2015			%			2016			%			2015			%			2016			%
Vessel operating profit (loss):
Americas (C)	$	(6,242	)		(5	%)		9,289			4	%		(11,745	)		(3	%)		41,940			5	%		(1,177	)		(1	%)
Asia/Pacific (C)		(5,586	)		(4	%)		(3,796	)		(2	%)		(17,256	)		(4	%)		4,122			1	%		(6,096	)		(4	%)
Middle East		(2,782	)		(2	%)		650			1	%		(1,890	)		(<1	%)		4,898			1	%		925			1	%
Africa/Europe		(11,559	)		(9	%)		3,120			1	%		(38,940	)		(9	%)		19,085			2	%		(14,072	)		(10	%)
		(26,169	)		(20	%)		9,263			4	%		(69,831	)		(16	%)		70,045			9	%		(20,420	)		(14	%)
Other operating profit (loss)		116			<1	%		(626	)		(<1	%)		(1,323	)		(<1	%)		(3,120	)		(<1	%)		(1,012	)		(1	%)
		(26,053	)		(20	%)		8,637			4	%		(71,154	)		(16	%)		66,925			9	%		(21,432	)		(15	%)

Corporate general and administrative expenses		(13,133	)		(10	%)		(7,150	)		(3	%)		(33,632	)		(8	%)		(25,096	)		(3	%)		(10,006	)		(7	%)
Corporate depreciation		(565	)		(1	%)		(1,629	)		(1	%)		(1,892	)		(<1	%)		(4,772	)		(1	%)		(597	)		(<1	%)
Corporate expenses		(13,698	)		(11	%)		(8,779	)		(4	%)		(35,524	)		(8	%)		(29,868	)		(4	%)		(10,603	)		(7	%)

Gain on asset dispositions, net		6,139			5	%		5,883			2	%		18,035			4	%		19,345			2	%		6,253			4	%
Asset impairments		(253,422	)		(196	%)		(15,141	)		(6	%)		(419,870	)		(95	%)		(61,771	)		(7	%)		(129,562	)		(90	%)
Restructuring charge		—			—			—			—			—			—			(7,586	)		(1	%)		—			—
Operating loss	$	(287,034	)		(222	%)		(9,400	)		(4	%)		(508,513	)		(115	%)		(12,955	)		(1	%)		(155,344	)		(108	%)
Foreign exchange gain (loss)		2,970			2	%		(469	)		(<1	%)		(2,302	)		(1	%)		(3,758	)		(1	%)		(2,539	)		(2	%)
Equity in net earnings (losses) of unconsolidated companies		1,557			1	%		(1,710	)		(1	%)		2,869			<1	%		(7,070	)		(1	%)		1,313			1	%
Interest income and other, net		1,437			1	%		609			<1	%		3,605			1	%		1,754			<1	%		992			1	%
Interest and other debt costs, net		(18,587	)		(14	%)		(13,312	)		(6	%)		(54,018	)		(12	%)		(39,741	)		(5	%)		(18,477	)		(13	%)
Loss before income taxes	$	(299,657	)		(232	%)		(24,282	)		(11	%)		(558,359	)		(127	%)		(61,770	)		(8	%)		(174,055	)		(121	%)

Note (C): Nine months ended December 31, 2015 figures exclude restructuring charges of $3.6 million ($3.4 million crew costs and $0.2 million other) and $4.0 million (crew costs) related to our Americas and Asia/Pacific segments, respectively, which were incurred during the quarter ended September 30, 2015.

The company’s revenues, day-based vessel utilization percentages and average day rates by vessel class and in total for the quarters and nine-month periods ended December 31, 2016 and 2015 and for the quarter ended September 30, 2016, were as follows:

										Quarter
	Quarter Ended					Nine Months Ended				Ended
	December 31,					December 31,				September 30,
	2016			2015		2016		2015		2016
REVENUE BY VESSEL CLASS (In thousands):
Americas fleet:
Deepwater	$	30,846			49,792		108,503		191,720		37,270
Towing-supply		11,905			22,254		41,823		75,890		13,039
Other		2,826			3,917		8,984		11,735		2,816
Total	$	45,577			75,963		159,310		279,345		53,125
Asia/Pacific fleet:
Deepwater	$	1,652			13,267		6,114		56,535		1,872
Towing-supply		3,934			5,877		13,503		22,719		4,238
Other		—			—		—		—		—
Total	$	5,586			19,144		19,617		79,254		6,110
Middle East fleet:
Deepwater	$	6,953			5,359		19,979		17,800		6,988
Towing-supply		13,694			20,897		48,344		69,393		16,486
Other		—			—		—		—		—
Total	$	20,647			26,256		68,323		87,193		23,474
Africa/Europe fleet:
Deepwater	$	21,748			42,692		79,342		165,327		24,305
Towing-supply		26,087			36,084		79,938		120,995		25,934
Other		5,475			12,769		20,381		43,238		6,413
Total	$	53,310			91,545		179,661		329,560		56,652
Worldwide fleet:
Deepwater	$	61,199			111,110		213,938		431,382		70,435
Towing-supply		55,620			85,112		183,608		288,997		59,697
Other		8,301			16,686		29,365		54,973		9,229
Total	$	125,120			212,908		426,911		775,352		139,361
UTILIZATION:
Americas fleet:
Deepwater		32.1	%		53.6		37.4		66.5		38.1
Towing-supply	36.4				48.9		38.7		56.7		37.5
Other		37.0			60.4		39.8		50.7		34.1
Total		34.0	%		52.7		38.1		60.7		37.5
Asia/Pacific fleet:
Deepwater		7.7	%		40.6		8.5		48.4		7.8
Towing-supply	42.5				62.6		46.6		71.7		44.2
Other		—			—		—		—		—
Total		26.2	%		51.0		29.1		59.0		27.7
Middle East fleet:
Deepwater		74.7	%		62.7		69.8		61.6		73.4
Towing-supply	58.7				68.0		62.3		75.0		60.8
Other		—			—		—		—		—
Total		62.5	%		67.1		64.0		72.7		63.8
Africa/Europe fleet:
Deepwater		42.9	%		53.7		47.2		61.9		44.0
Towing-supply	47.4				58.1		45.5		61.9		42.7
Other	37.6				72.9		44.1		72.8		42.8
Total		42.8	%		61.3		45.7		65.4		43.2
Worldwide fleet:
Deepwater		37.2	%		52.5		40.4		62.0		39.8
Towing-supply	47.5				58.9		48.6		65.1		46.6
Other	36.7				69.1		42.4		67.0		40.3
Total		41.4	%		58.4		44.3		64.3		42.8

									Quarter
	Quarter Ended				Nine Months Ended				Ended
	December 31,				December 31,				September 30,
	2016		2015		2016		2015		2016
AVERAGE VESSEL DAY RATES:
Americas fleet:
Deepwater	$	25,181		25,584		25,334		26,984		25,302
Towing-supply		16,239		17,071		16,558		16,797		16,401
Other		10,384		7,050		9,559		7,762		10,246
Total	$	20,436		19,962		20,560		21,268		20,892
Asia/Pacific fleet:
Deepwater	$	17,964		27,345		20,388		33,858		20,708
Towing-supply		6,164		6,379		6,315		7,593		6,127
Other		—		—		—		—		—
Total	$	7,650		13,611		8,046		17,000		7,811
Middle East fleet:
Deepwater	$	10,674		15,493		12,111		17,519		11,495
Towing-supply		8,553		11,515		9,649		11,608		10,159
Other		—		—		—		—		—
Total	$	9,167		12,152		10,259		12,467		10,523
Africa/Europe fleet:
Deepwater	$	13,262		19,849		14,618		22,009		14,416
Towing-supply		13,917		15,338		14,760		16,083		15,339
Other		4,169		4,699		4,420		5,147		4,288
Total	$	11,042		12,678		11,625		14,062		11,627
Worldwide fleet:
Deepwater	$	16,961		22,546		18,348		24,932		18,260
Towing-supply		11,476		13,315		12,167		13,754		12,436
Other		5,235		5,098		5,290		5,546		5,213
Total	$	12,461		14,589		13,216		16,077		13,364

The company’s average number of vessels by class and geographic distribution for the quarters and nine-month periods ended December 31, 2016 and 2015 and for the quarter ended September 30, 2016:

									Quarter
	Quarter Ended				Nine Months Ended				Ended
	December 31,				December 31,				September 30,
	2016		2015		2016		2015		2016
Americas fleet:
Deepwater		41		40		42		39		41
Towing-supply		22		29		24		29		23
Other		8		10		8		11		9
Total		71		79		74		79		73
Less stacked vessels		35		18		33		15		34
Active vessels		36		61		41		64		39
Asia/Pacific fleet:
Deepwater		13		13		13		13		13
Towing-supply		16		16		16		15		17
Other		1		1		1		1		1
Total		30		30		30		29		31
Less stacked vessels		22		12		20		7		21
Active vessels		8		18		10		22		10
Middle East fleet:
Deepwater		9		6		9		6		9
Towing-supply		30		29		29		29		29
Other		—		—		—		—		—
Total		39		35		38		35		38
Less stacked vessels		8		3		6		3		5
Active vessels		31		32		32		32		33
Africa/Europe fleet:
Deepwater		42		44		42		44		42
Towing-supply		43		44		43		44		43
Other		38		40		38		42		38
Total		123		128		123		130		123
Less stacked vessel		50		24		42		18		41
Active vessels		73		104		81		112		82
Active owned or chartered vessels		148		215		164		230		164
Stacked vessels		115		57		101		43		101
Total owned or chartered vessels		263		272		265		273		265
Joint-venture and other		8		9		8		9		8
Total		271		281		273		282		273

Note (D): Included in total owned or chartered vessels at December 31, 2016 and 2015 and at September 30, 2016, were 116, 70 and 115 vessels, respectively, that were stacked by the company. These vessels were considered to be in service and are included in the calculation of our utilization statistics.

The table below summarizes the various commitments to acquire and construct new vessels, by vessel type, as of December 31, 2016:

Number

Amount

Remaining

Shipyard

Delivery

Total

Invested

Balance

(In thousands)

Vessels (E)

Location

Dates

Cost

12/31/16

12/31/16 (E)

Deepwater:

292-foot PSV

International

4/2017

300-foot PSV

United States

2/2017, 6/2017

Total Deepwater PSVs

164,279

117,624

46,655

Total vessel commitments

164,279

117,624

46,655

Note (E): The two remaining option vessels and a fast supply boat are not included in the table above. The company has approximately $46.7 million in unfunded capital commitments associated with the three vessels under construction at December 31, 2016.

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 remaining shipbuilding commitments as discussed above:

	Quarter Period Ended
Vessel class and type	March 2017		June 2017
Deepwater PSVs		1		2
(In thousands) Expected quarterly cash outlay	$	13,662		32,993

Attached files

Stock widget

Investing forum

TIDEWATER INC Reports