TIDEWATER INC - FORM 8-K - EX-99.1

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8-K - 8-K - TIDEWATER INC	tdw-8k_20171108.htm

Exhibit 99.1

Tidewater Reports Results For The Three Months Ended September 30, 2017

NEW ORLEANS, LA. November 8, 2017 — Tidewater Inc. (NYSE:TDW) announced today a net loss for the period from August 1, 2017 through September 30, 2017 (Successor), of $15.7 million, or $0.81 per common share, on revenues of $74.3 million. For the period from July 1, 2017 through July 31, 2017 (Predecessor), the net loss was $1,122.5 million, or $23.82 per common share, on revenues of $36.3 million. For the quarter ended September 30, 2016 (Predecessor), the net loss was $178.5 million, or $3.79 per common share, on revenues of $143.7 million. For the immediately preceding quarter ended June 30, 2017 (Predecessor), the net loss was $524.4 million, or $11.13 per common share, on revenues of $115.1 million.

As more fully explained in the company's September 30, 2017 Form 10-Q, upon emergence from Chapter 11 bankruptcy on July 31, 2017, the company adopted fresh start accounting in accordance with applicable accounting and reporting regulations, which resulted in the company becoming a new entity for financial reporting purposes on July 31, 2017. References herein to "Successor" relate to the financial position and results of operations of the reorganized company subsequent to July 31, 2017, while references to "Predecessor" relate to financial position and results of operations of the company through July 31, 2017.

Larry Rigdon, company CEO and President, stated, "We are pleased to have successfully completed the financial restructuring of Tidewater during the September quarter. With a young, modern fleet, a global operating footprint and a financial profile characterized by low leverage and ample liquidity, the company is in a strong position, despite the challenging medium-term outlook for offshore energy services. Our near-term goals include further reducing costs in order to achieve a cash flow break even. Our ultimate goals include a return to sustainable profitability and positioning the company for an eventual recovery in offshore energy services.

Included in the net loss for the period from August 1, 2017 through September 30, 2017 (Successor) were the following:

•

$1.9 million ($1.9 million after-tax, or $0.10 per share) in reorganization items, including $1.3 million related to re-delivery of sale leaseback vessels to their respective owners and $0.6 million of reorganization-related professional fees.

Included in the net loss for the period from July 1, 2017 through July 31, 2017 (Predecessor) were the following:

•

$1.1 billion ($1.1 billion after-tax, or $23.00 per share) in reorganization items, including $1.8 billion of fresh start accounting adjustments, $22.9 million of reorganization-related professional fees and a gain on settlement of liabilities subject to compromise of $767.6 million.

•

$21.3 million ($21.3 million after-tax, or $0.45 per share) in non-cash asset impairment charges that resulted from impairment reviews undertaken during the period from July 1, 2017 through July 31, 2017.

Included in the net loss for the prior fiscal year’s quarter ended September 30, 2016 (Predecessor) 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 relative to the U.S. dollar and the revaluation of kroner-denominated liabilities.

•

$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.

Included in the net loss for the preceding quarter ended June 30, 2017 (Predecessor) were the following:

•

$313.2 million ($313.2 million after-tax, or $6.65 per share) of reorganization items, including (i) the establishment of a reserve in regards to sale leaseback claims of $323.6 million and the write-off of leasehold improvements to vessels underlying sale leaseback transactions of $1.7 million, partially offset by the recognition of sale leaseback-related deferred gains of $105.9 million and accrued liabilities associated with the recognition of lease expense on a straight-line basis of $11.3 million, (ii) the recognition of $94.8 million of make-whole claims on the Senior Notes and $5.1 million of debt issue costs and (iii) professional fees associated with the restructuring incurred subsequent to the Petition Date of $5.2 million.

•

$163.4 million ($163.4 million after-tax, or $3.47 per share) in non-cash asset impairment charges that resulted from impairment reviews undertaken during the June 2017 quarter.

•

$11.9 million ($11.9 million after-tax, or $0.25 per share) of debt negotiation expenses that were incurred in the quarter, which includes $6.7 million classified as general and administrative expenses and $5.2 million classified as reorganization items.

•

$1.2 million ($1.2 million after-tax, or $0.02 per share) of foreign exchange losses resulting primarily from the strengthening of the Norwegian kroner relative to the U.S. dollar and the revaluation of kroner-denominated liabilities.

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.)

Tidewater will hold a conference call to discuss results for the three months ended September 30, 2017 on Thursday, November 9, 2017, at 9:00 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 November 9, 2017, and will continue until 11:59 p.m. Central time on November 11, 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 45919170.

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 December 9, 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.,

Quinn Fanning, Executive Vice President and Chief Financial Officer

713-470-5300

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)


	Successor			Predecessor
	Period from			Period from
	August 1, 2017			July 1, 2017			Three Months
	through			through			Ended
	September 30, 2017			July 31, 2017			September 30, 2016
Revenues:
Vessel revenues	$	70,571			34,340			139,361
Other operating revenues		3,729			1,923			4,361
		74,300			36,263			143,722
Costs and expenses:
Vessel operating costs		52,301			32,665			87,094
Costs of other operating revenues		2,273			763			3,423
General and administrative		16,246			8,773			32,954
Vessel operating leases		1,124			623			8,441
Depreciation and amortization		8,142			11,160			43,845
Gain on asset dispositions, net		(4	)		(372	)		(6,253	)
Asset impairments		—			21,325			129,562
		80,082			74,937			299,066
Operating loss		(5,782	)		(38,674	)		(155,344	)
Other income (expenses):
Foreign exchange loss		(58	)		(2,024	)		(2,539	)
Equity in net earnings of unconsolidated companies		1,305			269			1,313
Interest income and other		873			704			992
Reorganization items		(1,880	)		(1,083,729	)		—
Interest and other debt costs		(5,240	)		(574	)		(18,477	)
		(5,000	)		(1,085,354	)		(18,711	)
Loss before income taxes		(10,782	)		(1,124,028	)		(174,055	)
Income tax (benefit) expense		4,745			(1,529	)		3,568
Net loss	$	(15,527	)		(1,122,499	)		(177,623	)
Less: Net income (loss) attributable to noncontrolling interests		166			(24	)		867
Net loss attributable to Tidewater Inc.	$	(15,693	)		(1,122,475	)		(178,490	)
Basic loss per common share	$	(0.81	)		(23.82	)		(3.79	)
Diluted loss per common share	$	(0.81	)		(23.82	)		(3.79	)
Weighted average common shares outstanding		19,389,031			47,121,407			47,067,864
Dilutive effect of stock options and restricted stock		—			—			—
Adjusted weighted average common shares		19,389,031			47,121,407			47,067,864

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)

(Unaudited)

(In thousands, except share and per share data)


	Successor			Predecessor
	Period from			Period from
	August 1, 2017			April 1, 2017			Six Months
	through			through			Ended
	September 30, 2017			July 31, 2017			September 30, 2016
Revenues:
Vessel revenues	$	70,571			146,597			301,791
Other operating revenues		3,729			4,772			9,856
		74,300			151,369			311,647
Costs and expenses:
Vessel operating costs		52,301			116,438			195,968
Costs of other operating revenues		2,273			2,348			7,326
General and administrative		16,246			41,832			70,001
Vessel operating leases		1,124			6,165			16,882
Depreciation and amortization		8,142			47,447			88,397
Gain on asset dispositions, net		(4	)		(3,561	)		(11,896	)
Asset impairments		—			184,748			166,448
		80,082			395,417			533,126
Operating loss		(5,782	)		(244,048	)		(221,479	)
Other income (expenses):
Foreign exchange loss		(58	)		(3,181	)		(5,272	)
Equity in net earnings of unconsolidated companies		1,305			4,786			1,312
Interest income and other		873			2,384			2,168
Reorganization items		(1,880	)		(1,396,905	)		—
Interest and other debt costs		(5,240	)		(11,179	)		(35,431	)
		(5,000	)		(1,404,095	)		(37,223	)
Loss before income taxes		(10,782	)		(1,648,143	)		(258,702	)
Income tax (benefit) expense		4,745			(1,234	)		7,564
Net loss	$	(15,527	)		(1,646,909	)		(266,266	)
Less: Net income attributable to noncontrolling interests		166			—			1,321
Net loss attributable to Tidewater Inc.	$	(15,693	)		(1,646,909	)		(267,587	)
Basic loss per common share	$	(0.81	)		(34.95	)		(5.69	)
Diluted loss per common share	$	(0.81	)		(34.95	)		(5.69	)
Weighted average common shares outstanding		19,389,031			47,121,330			47,067,790
Dilutive effect of stock options and restricted stock		—			—			—
Adjusted weighted average common shares		19,389,031			47,121,330			47,067,790

TIDEWATER INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and par value data)

	Successor			Predecessor
	September 30,			March 31,
ASSETS	2017			2017
Current assets:
Cash and cash equivalents	$	459,978			706,404
Trade and other receivables, less allowance for doubtful accounts of $200 and $16,165 as of September 30, 2017 and March 31, 2017, respectively		120,271			123,262
Due from affiliate		245,056			262,652
Marine operating supplies		31,083			30,560
Other current assets		14,813			18,409
Total current assets		871,201			1,141,287
Investments in, at equity, and advances to unconsolidated companies		25,729			45,115
Net properties and equipment		868,689			2,864,762
Deferred drydocking and survey costs		388			—
Other assets		46,845			139,535
Total assets	$	1,812,852			4,190,699

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	39,439			31,599
Accrued expenses		61,115			78,121
Due to affiliate		112,642			132,857
Accrued property and liability losses		2,774			3,583
Current portion of long-term debt		5,174			2,034,124
Other current liabilities		38,041			48,429
Total current liabilities		259,185			2,328,713
Long-term debt		445,677			—
Deferred income taxes		—			46,013
Accrued property and liability losses		2,607			10,209
Other liabilities and deferred credits		62,569			154,705

Commitments and Contingencies

Equity:
Predecessor Common stock of $0.10 par value, 125,000,000 shares authorized, 47,121,304 shares issued and outstanding at March 31, 2017		—			4,712
Predecessor Additional paid-in capital		—			165,221
Successor Common stock of $0.001 par value, 125,000,000 shares authorized 20,738,076 shares issued and outstanding at September 30, 2017		21			—
Successor Additional paid-in capital		1,056,563			—
Retained earnings		(15,693	)		1,475,329
Accumulated other comprehensive loss		82			(10,344	)
Total stockholders’ equity		1,040,973			1,634,918
Noncontrolling interests		1,841			16,141
Total equity		1,042,814			1,651,059
Total liabilities and equity	$	1,812,852			4,190,699

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)

(In thousands)


	Successor			Predecessor
	Period from			Period from
	August 1, 2017			July 1, 2017			Three Months
	through			through			Ended
	September 30, 2017			July 31, 2017			September 30, 2016
Net loss	$	(15,527	)		(1,122,499	)		(177,623	)
Other comprehensive income:
Unrealized gains on available for sale securities, net of tax of $0, $0 and $0		82			77			119
Change in loss on derivative contract, net of tax of $0, $0 and $0		—			—			72
Changes in supplemental executive retirement plan liability, net of tax of $0, $0 and $0		—			(536	)		—
Changes in minimum pension liability, net of tax of $0, $0 and $0		—			(594	)		—
Change in other benefit plan minimum liability, net of tax of $0, $0 and $0		—			(1,468	)		—
Total comprehensive loss	$	(15,445	)		(1,125,020	)		(177,432	)

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)

(In thousands)


	Successor			Predecessor
	Period from			Period from
	August 1, 2017			April 1, 2017			Six Months
	through			through			Ended
	September 30, 2017			July 31, 2017			September 30, 2016
Net loss	$	(15,527	)		(1,646,909	)		(266,266	)
Other comprehensive income:
Unrealized gains on available for sale securities, net of tax of $0, $0 and $0		82			163			280
Change in loss on derivative contract, net of tax of $0, $0 and $0		—			—			143
Changes in supplemental executive retirement plan liability, net of tax of $0, $0 and $0		—			(536	)		—
Changes in minimum pension liability, net of tax of $0, $0 and $0		—			(594	)		—
Change in other benefit plan minimum liability, net of tax of $0, $0 and $0		—			(1,468	)		—
Total comprehensive loss	$	(15,445	)		(1,649,344	)		(265,843	)

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)


	Successor			Predecessor
	Period from			Period from
	August 1, 2017			April 1, 2017			Six Months
	through			through			Ended
	September 30, 2017			July 31, 2017			September 30, 2016
Operating activities:
Net loss	$	(15,527	)		(1,646,909	)		(266,266	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Reorganization items		—			1,368,882			—
Depreciation and amortization		8,138			47,447			88,397
Amortization of deferred drydocking and survey costs		4			—			—
Amortization of debt premiums and discounts		(281	)		—			—
Provision for deferred income taxes		—			(5,543	)		—
Gain on asset dispositions, net		(4	)		(3,561	)		(11,896	)
Asset impairments		—			184,748			166,448
Equity in earnings of unconsolidated companies, less dividends		(1,044	)		(4,252	)		(1,659	)
Compensation expense - stock-based		1,173			1,707			2,628
Changes in assets and liabilities, net:
Trade and other receivables		(3,775	)		6,286			18,263
Changes in due to/from affiliate, net		(3,920	)		1,301			25,792
Marine operating supplies		1,005			88			2,289
Other current assets		5,714			(1,840	)		(1,827	)
Accounts payable		(317	)		8,157			9,671
Accrued expenses		(10,555	)		17,245			(16,386	)
Accrued property and liability losses		13			(822	)		281
Other current liabilities		3,753			(2,337	)		(9,716	)
Other liabilities and deferred credits		(847	)		2,884			(5,173	)
Other, net		(1,339	)		4,932			(1,448	)
Net cash used in operating activities		(17,809	)		(21,587	)		(602	)
Cash flows from investing activities:
Proceeds from sales of assets		4,875			2,172			1,839
Additions to properties and equipment		(589	)		(2,265	)		(9,509	)
Payments related to novated vessel construction contract		—			5,272			—
Refunds from cancelled vessel construction contracts		—			—			11,515
Net cash provided by investing activities		4,286			5,179			3,845
Cash flows from financing activities:
Principal payment on long-term debt		—			(5,124	)		(5,036	)
Cash payments to creditors pursuant to the plan of reorganization		(87,366	)		(122,806	)		—
Cash received for issuance of common stock		1			—			—
Other		—			(1,200	)		(1,722	)
Net cash used in financing activities		(87,365	)		(129,130	)		(6,758	)
Net change in cash and cash equivalents		(100,888	)		(145,538	)		(3,515	)
Cash and cash equivalents at beginning of period		560,866			706,404			678,438
Cash and cash equivalents at end of period	$	459,978			560,866			674,923
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest, net of amounts capitalized	$	59			1,577			34,209
Income taxes	$	1,392			4,740			16,790
Supplemental disclosure of non-cash investing activities:
Additions to properties and equipment	$	—			—			10,477

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, 2017 (Predecessor)	$	4,712			165,221			1,475,329			(10,344	)		16,141			1,651,059
Total comprehensive loss		—			—			(1,646,909	)		(2,435	)		—			(1,649,344	)
Stock option expense		—			390			—			—			—			390
Cancellation/forfeiture or restricted stock units		—			1,254			—			—			—			1,254
Amortization of restricted stock units		—			2			—			—			—			2
Cash paid to noncontrolling interests		—			—			—			—			(1,200	)		(1,200	)
Balance at July 31, 2017 (Predecessor)	$	4,712			166,867			(171,580	)		(12,779	)		14,941			2,161
Cancellation of Predecessor equity		(4,712	)		(166,867	)		171,580			12,779			(13,266	)		(486	)
Balance at July 31, 2017 (Predecessor)	$	—			—			—			—			1,675			1,675

Issuance of Successor common stock and warrants	$	18			1,055,391			—			—			—			1,055,409

Balance at August 1, 2017 (Successor)	$	18			1,055,391			—			—			1,675			1,057,084
Total comprehensive loss		—			—			(15,693	)		82			166			(15,445	)
Issuance of common stock		3			(1	)		—			—			—			2
Amortization of restricted stock units		—			1,173			—			—			—			1,173
Balance at September 30, 2017 (Successor)	$	21			1,056,563			(15,693	)		82			1,841			1,042,814

The company’s vessel revenues and vessel operating costs and the related percentage of total vessel revenues, were as follows:

	Successor					Predecessor
	Period from					Period from
	August 1, 2017					July 1, 2017					Three Months
	through					through					Ended
	September 30, 2017					July 31, 2017					September 30, 2016
(In thousands)			%					%					%
Vessel revenues:
Americas	$	17,449		25	%		8,961		26	%		53,125		38	%
Middle East/Asia Pacific		16,669		24	%		8,547		25	%		29,584		21	%
Africa/Europe		36,453		51	%		16,832		49	%		56,652		41	%
Total vessel revenues	$	70,571		100	%		34,340		100	%		139,361		100	%
Vessel operating costs:
Crew costs	$	27,705		39	%		14,443		42	%		49,370		35	%
Repair and maintenance		6,373		9	%		9,196		27	%		13,440		10	%
Insurance and loss reserves		1,679		2	%		825		2	%		2,637		2	%
Fuel, lube and supplies		6,990		10	%		2,851		8	%		10,176		7	%
Other		9,554		14	%		5,350		16	%		11,471		8	%
Total vessel operating costs		52,301		74	%		32,665		95	%		87,094		62	%
Vessel operating margin (A)	$	18,270		26	%		1,675		5	%		52,267		38	%

	Successor					Predecessor
	Period from					Period from
	August 1, 2017					April 1, 2017					Six Months
	through					through					Ended
	September 30, 2017					July 31, 2017					September 30, 2016
(In thousands)			%					%					%
Vessel revenues:
Americas	$	17,449		25	%		40,848		28	%		113,733		38	%
Middle East/Asia Pacific		16,669		24	%		36,313		25	%		61,707		20	%
Africa/Europe		36,453		51	%		69,436		47	%		126,351		42	%
Total vessel revenues	$	70,571		100	%		146,597		100	%		301,791		100	%
Vessel operating costs:
Crew costs	$	27,705		39	%		56,653		39	%		105,258		35	%
Repair and maintenance		6,373		9	%		23,040		16	%		29,969		10	%
Insurance and loss reserves		1,679		2	%		3,949		3	%		9,633		3	%
Fuel, lube and supplies		6,990		10	%		12,279		8	%		20,948		7	%
Other		9,554		14	%		20,517		14	%		30,160		10	%
Total vessel operating costs		52,301		74	%		116,438		80	%		195,968		65	%
Vessel operating margin (A)	$	18,270		26	%		30,159		20	%		105,823		35	%

Note (A): The following tables reconcile vessel operating margin as presented above to vessel operating loss:

	Successor			Predecessor
	Period from			Period from
	August 1, 2017			July 1, 2017			Three Months
	through			through			Ended
(In thousands)	September 30, 2017			July 31, 2017			September 30, 2016
Vessel operating margin	$	18,270			1,675			52,267
General and administrative expenses - vessel operations		(11,214	)		(5,879	)		(22,337	)
Vessel operating leases		(1,124	)		(623	)		(8,441	)
Depreciation and amortization - vessel operations		(7,663	)		(10,712	)		(41,909	)
Vessel operating loss	$	(1,731	)		(15,539	)		(20,420	)

	Successor			Predecessor
	Period from			Period from
	August 1, 2017			April 1, 2017			Six Months
	through			through			Ended
(In thousands)	September 30, 2017			July 31, 2017			September 30, 2016
Vessel operating margin	$	18,270			30,159			105,823
General and administrative expenses - vessel operations		(11,214	)		(23,881	)		(48,253	)
Vessel operating leases		(1,124	)		(6,165	)		(16,882	)
Depreciation and amortization - vessel operations		(7,663	)		(45,604	)		(84,350	)
Vessel operating loss	$	(1,731	)		(45,491	)		(43,662	)

The company’s other operating profit (loss) consists of the following:

	Successor			Predecessor
	Period from			Period from
	August 1, 2017			July 1, 2017			Three Months
	through			through			Ended
(In thousands)	September 30, 2017			July 31, 2017			September 30, 2016
Other operating revenues	$	3,729			1,923			4,361
Costs of other marine revenues		(2,273	)		(763	)		(3,423	)
General and administrative expenses - other operating activities		(235	)		(54	)		(611	)
Depreciation and amortization - other operating activities		(412	)		(285	)		(1,339	)
Other operating profit (loss)	$	809			821			(1,012	)

	Successor			Predecessor
	Period from			Period from
	August 1, 2017			April 1, 2017			Six Months
	through			through			Ended
(In thousands)	September 30, 2017			July 31, 2017			September 30, 2016
Other operating revenues	$	3,729			4,772			9,856
Costs of other marine revenues		(2,273	)		(2,348	)		(7,326	)
General and administrative expenses - other operating activities		(235	)		(409	)		(1,249	)
Depreciation and amortization - other operating activities		(412	)		(1,139	)		(2,720	)
Other operating profit (loss)	$	809			876			(1,439	)

The company’s operating loss and other components of loss before income taxes and its related percentage of total revenues, were as follows:

	Successor						Predecessor
	Period from						Period from
	August 1, 2017						July 1, 2017						Three Months
	through						through						Ended
	September 30, 2017						July 31, 2017						September 30, 2016
(In thousands)				%						%						%
Vessel operating profit (loss):
Americas	$	(2,651	)		(4	%)		(6,850	)		(19	%)		(1,177	)		(1	%)
Middle East/Asia Pacific		944			1	%		(118	)		(<1	%)		(5,171	)		(3	%)
Africa/Europe		(24	)		(<1	%)		(8,571	)		(24	%)		(14,072	)		(10	%)
		(1,731	)		(3	%)		(15,539	)		(43	%)		(20,420	)		(14	%)
Other operating profit (loss)		809			1	%		821			2	%		(1,012	)		(1	%)
		(922	)		(2	%)		(14,718	)		(41	%)		(21,432	)		(15	%)

Corporate general and administrative expenses (B)		(4,797	)		(7	%)		(2,840	)		(8	%)		(10,006	)		(7	%)
Corporate depreciation		(67	)		(<1	%)		(163	)		(<1	%)		(597	)		(<1	%)
Corporate expenses		(4,864	)		(7	%)		(3,003	)		(8	%)		(10,603	)		(7	%)

Gain on asset dispositions, net		4			<1	%		372			1	%		6,253			4	%
Asset impairments		—			—			(21,325	)		(59	%)		(129,562	)		(90	%)
Operating loss	$	(5,782	)		(9	%)		(38,674	)		(107	%)		(155,344	)		(108	%)
Foreign exchange loss		(58	)		(<1	%)		(2,024	)		(5	%)		(2,539	)		(2	%)
Equity in net earnings of unconsolidated companies		1,305			2	%		269			1	%		1,313			1	%
Interest income and other, net		873			1	%		704			2	%		992			1	%
Reorganization items (C)		(1,880	)		(2	%)		(1,083,729	)		(2989	%)		—			—
Interest and other debt costs		(5,240	)		(7	%)		(574	)		(2	%)		(18,477	)		(13	%)
Loss before income taxes	$	(10,782	)		(15	%)		(1,124,028	)		(3100	%)		(174,055	)		(121	%)

	Successor						Predecessor
	Period from						Period from
	August 1, 2017						April 1, 2017						Six Months
	through						through						Ended
	September 30, 2017						July 31, 2017						September 30, 2016
(In thousands)				%						%						%
Vessel operating profit (loss):
Americas	$	(2,651	)		(4	%)		(22,549	)		(15	%)		(5,503	)		(2	%)
Middle East/Asia Pacific		944			1	%		(1,434	)		(1	%)		(10,778	)		(3	%)
Africa/Europe		(24	)		(<1	%)		(21,508	)		(14	%)		(27,381	)		(9	%)
		(1,731	)		(3	%)		(45,491	)		(30	%)		(43,662	)		(14	%)
Other operating profit (loss)		809			1	%		876			1	%		(1,439	)		(<1	%)
		(922	)		(2	%)		(44,615	)		(29	%)		(45,101	)		(14	%)

Corporate general and administrative expenses (B)		(4,797	)		(7	%)		(17,542	)		(12	%)		(20,499	)		(7	%)
Corporate depreciation		(67	)		(<1	%)		(704	)		(<1	%)		(1,327	)		(<1	%)
Corporate expenses		(4,864	)		(7	%)		(18,246	)		(12	%)		(21,826	)		(7	%)

Gain on asset dispositions, net		4			<1	%		3,561			2	%		11,896			4	%
Asset impairments		—			—			(184,748	)		(122	%)		(166,448	)		(54	%)
Operating loss	$	(5,782	)		(9	%)		(244,048	)		(161	%)		(221,479	)		(71	%)
Foreign exchange loss		(58	)		(<1	%)		(3,181	)		(2	%)		(5,272	)		(2	%)
Equity in net earnings of unconsolidated companies		1,305			2	%		4,786			3	%		1,312			<1	%
Interest income and other, net		873			1	%		2,384			2	%		2,168			1	%
Reorganization items (C)		(1,880	)		(2	%)		(1,396,905	)		(923	%)		—			—
Interest and other debt costs		(5,240	)		(7	%)		(11,179	)		(8	%)		(35,431	)		(11	%)
Loss before income taxes	$	(10,782	)		(15	%)		(1,648,143	)		(1089	%)		(258,702	)		(83	%)

Note (B): Costs associated with debt negotiations were classified as general and administrative expenses until our chapter 11 Petition Date of May 17, 2017. Subsequent to the Petition Date, costs associated with debt negotiations were classified as reorganization items. Professional services costs related to debt negotiations for the period from August 1, 2017 through September 30, 2017 (Successor) and for the period from July 1, 2017 through July 31, 2017 (Predecessor) of $0.6 million and $22.9 million, respectively, were classified as reorganization items. For the quarter ended September 30, 2016 (Predecessor), $3.1 million of debt negotiation-related professional services costs were included in general and administrative expenses. Professional services costs related to debt negotiations for the period from August 1, 2017 through September 30, 2017 (Successor) and for the period from April 1, 2017 through July 31, 2017 (Predecessor) of $0.6 million and $28 million, respectively, were classified as reorganization items. For the six months ended September 30, 2016 (Predecessor), $7 million of debt-negotiation related professional services costs were included in general and administrative expenses.

Note (C): Reorganization items for the period from August 1, 2017 through September 30, 2017 (Successor) of $1.9 million include (i) $1.3 million related to re-delivery of sale leaseback vessels to their respective owners and (ii) $0.6 million of reorganization-related professional fees.

Reorganization items for the period from July 1, 2017 through July 31, 2017 (Predecessor) of $1.1 billion include (i) $1.8 billion of fresh start accounting adjustments, (ii) $22.9 million of reorganization-related professional fees. Offsetting these reorganization charges is a gain on settlement of liabilities subject to compromise of $767.6 million.

Reorganization items for the period from April 1, 2017 through July 31, 2017 (Predecessor) of $1.4 billion include (i) $1.8 billion of fresh start accounting adjustments, (ii) the establishment of a reserve in regards to sale leaseback claims of $323.6 million and the write-off of leasehold improvements to vessels underlying sale leaseback transactions of $1.7 million, partially offset by the recognition of sale leaseback-related deferred gains of $105.9 million and accrued liabilities associated with the recognition of lease expense on a straight-line basis of $11.3 million, (iii) $94.8 million of make-whole claims on the Senior Notes and $5.2 million of debt issue costs and (iv) professional fees associated with the restructuring incurred subsequent to the Petition Date of $28.0 million. Offsetting these reorganization charges is a gain on settlement of liabilities subject to compromise of $767.6 million.

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)

(Unaudited)

(In thousands, except share and per share data)

		Successor			Predecessor
		Period from			Period from			Three Months Ended
		August 1, 2017			July 1, 2017
		through			through			June 30,			March 31,			December 31,			September 30,
		September 30, 2017			July 31, 2017			2017			2017			2016			2016
Revenues:
Vessel revenues	$		70,571			34,340			112,257			156,905			125,120			139,361
Other operating revenues			3,729			1,923			2,849			3,844			4,095			4,361
			74,300			36,263			115,106			160,749			129,215			143,722
Costs and expenses:
Vessel operating costs			52,301			32,665			83,773			80,845			82,358			87,094
Costs of other operating revenues			2,273			763			1,585			2,689			2,714			3,423
General and administrative (D)			16,246			8,773			33,059			41,727			34,151			32,954
Vessel operating leases			1,124			623			5,542			8,443			8,441			8,441
Depreciation and amortization			8,142			11,160			36,287			37,592			41,302			43,845
Gain on asset dispositions, net			(4	)		(372	)		(3,189	)		(6,064	)		(6,139	)		(6,253	)
Asset impairments			—			21,325			163,423			64,857			253,422			129,562
			80,082			74,937			320,480			230,089			416,249			299,066
Operating loss			(5,782	)		(38,674	)		(205,374	)		(69,340	)		(287,034	)		(155,344	)
Other income (expenses):
Foreign exchange gain (loss)			(58	)		(2,024	)		(1,157	)		664			2,970			(2,539	)
Equity in net earnings of unconsolidated companies			1,305			269			4,517			2,841			1,557			1,313
Interest income and other			873			704			1,680			1,588			1,437			992
Reorganization items (D)			(1,880	)		(1,083,729	)		(313,176	)		—			—			—
Interest and other debt costs			(5,240	)		(574	)		(10,605	)		(21,008	)		(18,587	)		(18,477	)
			(5,000	)		(1,085,354	)		(318,741	)		(15,915	)		(12,623	)		(18,711	)
Loss before income taxes			(10,782	)		(1,124,028	)		(524,115	)		(85,255	)		(299,657	)		(174,055	)
Income tax (benefit) expense			4,745			(1,529	)		295			1,717			(2,884	)		3,568
Net loss	$		(15,527	)		(1,122,499	)		(524,410	)		(86,972	)		(296,773	)		(177,623	)
Less: Net income (loss) attributable to noncontrolling interests			166			(24	)		24			7,883			903			867
Net loss attributable to Tidewater Inc.	$		(15,693	)		(1,122,475	)		(524,434	)		(94,855	)		(297,676	)		(178,490	)
Basic loss per common share	$		(0.81	)		(23.82	)		(11.13	)		(2.01	)		(6.32	)		(3.79	)
Diluted loss per common share	$		(0.81	)		(23.82	)		(11.13	)		(2.01	)		(6.32	)		(3.79	)
Weighted average common shares outstanding			19,389,031			47,121,407			47,121,304			47,080,783			47,068,079			47,067,864
Dilutive effect of stock options and restricted stock			—			—			—			—			—			—
Adjusted weighted average common shares			19,389,031			47,121,407			47,121,304			47,080,783			47,068,079			47,067,864

'Note (D): Restructuring-related professional services costs
Included in general and administrative expenses	$		—			—			6,709			16,805			5,188			3,054
Included in reorganization items			636			22,858			5,165			—			—			—
Total	$		636			22,858			11,874			16,805			5,188			3,054

TIDEWATER INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

		Successor			Predecessor
		September 30,			June 30,			March 31,			December 31,			September 30,
ASSETS		2017			2017			2017			2016			2016
Current assets:
Cash and cash equivalents	$		459,978			683,778			706,404			649,804			674,923
Trade and other receivables, net			120,271			116,612			123,262			174,335			209,850
Due from affiliate			245,056			252,810			262,652			287,592			300,757
Marine operating supplies			31,083			31,097			30,560			30,720			31,124
Other current assets			14,813			34,619			18,409			22,053			31,874
Total current assets			871,201			1,118,916			1,141,287			1,164,504			1,248,528
Investments in, at equity, and advances to unconsolidated companies			25,729			49,216			45,115			42,516			38,200
Net properties and equipment			868,689			2,659,314			2,864,762			3,009,407			3,311,567
Deferred drydocking and survey costs			388			—			—			—			—
Other assets			46,845			92,134			139,535			98,772			89,967
Total assets	$		1,812,852			3,919,580			4,190,699			4,315,199			4,688,262

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$		39,439			35,087			31,599			50,754			64,231
Accrued expenses			61,115			63,155			78,121			67,412			76,085
Due to affiliate			112,642			121,037			132,857			132,836			175,925
Accrued property and liability losses			2,774			2,758			3,583			3,574			3,602
Current portion of long-term debt			5,174			10,106			2,034,124			2,036,060			2,041,367
Other current liabilities			38,041			28,029			48,429			50,274			60,345
Total current liabilities			259,185			260,172			2,328,713			2,340,910			2,421,555
Long-term debt			445,677			80,863			—			—			—
Deferred income taxes			—			—			46,013			56,375			48,204
Accrued property and liability losses			2,607			2,776			10,209			11,113			11,210
Other liabilities and deferred credits			62,569			60,382			154,705			159,237			164,530
Liabilities subject to compromise			—			2,389,557			—			—			—

Commitments and Contingencies

Equity:
Common stock			21			4,712			4,712			4,707			4,707
Additional paid-in capital			1,056,563			165,516			165,221			171,018			169,443
Retained earnings			(15,693	)		950,895			1,475,329			1,570,027			1,867,701
Accumulated other comprehensive loss			82			(10,258	)		(10,344	)		(6,446	)		(6,443	)
Total stockholders’ equity			1,040,973			1,110,865			1,634,918			1,739,306			2,035,408
Noncontrolling interests			1,841			14,965			16,141			8,258			7,355
Total equity			1,042,814			1,125,830			1,651,059			1,747,564			2,042,763
Total liabilities and equity	$		1,812,852			3,919,580			4,190,699			4,315,199			4,688,262

Due from affiliate, net of due to affiliate	$		132,414			131,773			129,795			154,756			124,832

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

		Successor		Predecessor
		Period from		Period from		Three Months Ended
		August 1, 2017		July 1, 2017
		through		through		June 30,		March 31,		December 31,		September 30,
		September 30, 2017		July 31, 2017		2017		2017		2016		2016
REVENUE BY VESSEL CLASS (In thousands):

Americas fleet:
Deepwater (E)	$		9,798		4,304		17,313		62,831		30,846		37,270
Towing-supply			5,572		3,747		11,274		14,738		11,905		13,039
Other			2,079		910		3,300		2,964		2,826		2,816
Total (E)	$		17,449		8,961		31,887		80,533		45,577		53,125
Middle East/Asia Pacific fleet:
Deepwater	$		5,726		2,667		10,701		9,433		8,605		8,860
Towing-supply			10,943		5,880		17,065		17,245		17,628		20,724
Other			—		—		—		—		—		—
Total	$		16,669		8,547		27,766		26,678		26,233		29,584
Africa/Europe fleet:
Deepwater	$		17,582		7,588		22,158		23,032		21,748		24,305
Towing-supply			15,049		8,124		27,019		22,794		26,087		25,934
Other			3,822		1,120		3,427		3,868		5,475		6,413
Total	$		36,453		16,832		52,604		49,694		53,310		56,652
Worldwide fleet:
Deepwater (E)	$		33,106		14,559		50,172		95,296		61,199		70,435
Towing-supply			31,564		17,751		55,358		54,777		55,620		59,697
Other			5,901		2,030		6,727		6,832		8,301		9,229
Total (E)	$		70,571		34,340		112,257		156,905		125,120		139,361

Note (E): Included in Americas fleet deepwater, Americas fleet total, Worldwide fleet deepwater and Worldwide fleet total revenue for the quarter ended March 31, 2017 (Predecessor) is $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract.

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

	Successor			Predecessor
	Period from			Period from			Three Months Ended
	August 1, 2017			July 1, 2017
	through			through			June 30,			March 31,			December 31,			September 30,
	September 30, 2017			July 31, 2017			2017			2017			2016			2016
AVERAGE NUMBER OF VESSELS:

Americas fleet:
Deepwater		37			41			41			41			41			41
Towing-supply		19			20			21			22			22			23
Other		8			8			8			8			8			9
Total		64			69			70			71			71			73
Stacked vessels		(38	)		(41	)		(35	)		(34	)		(35	)		(34	)
Active vessels		26			28			35			37			36			39
Middle East/Asia Pacific fleet:
Deepwater		21			21			22			23			22			22
Towing-supply		43			44			44			44			46			46
Other		1			1			1			1			1			1
Total		65			66			67			68			69			69
Stacked vessels		(24	)		(26	)		(25	)		(24	)		(30	)		(26	)
Active vessels		41			40			42			44			39			43
Africa/Europe fleet:
Deepwater		44			42			41			41			42			42
Towing-supply		44			44			44			43			43			43
Other		32			34			37			38			38			38
Total		120			120			122			122			123			123
Stacked vessels		(41	)		(45	)		(49	)		(54	)		(50	)		(41	)
Active vessels		79			75			73			68			73			82
Worldwide fleet:
Deepwater		102			104			104			105			105			105
Towing-supply		106			108			109			109			111			112
Other		41			43			46			47			47			48
Total		249			255			259			261			263			265
Stacked vessels		(103	)		(112	)		(109	)		(112	)		(115	)		(101	)
Active vessels		146			143			150			149			148			164

Total active		146			143			150			149			148			164
Total stacked		103			112			109			112			115			101
Total joint venture and other vessels		8			8			8			8			8			8
Total		257			263			267			269			271			273

Note (F): Included in total owned or chartered vessels at September 30, 2017 (Successor), July 31, 2017 (Predecessor), June 30, 2017 (Predecessor), March 31, 2017 (Predecessor), December 31, 2016 (Predecessor) and September 30, 2016 (Predecessor), were 91, 109, 115, 111, 116 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.

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

	Successor		Predecessor
	Period from		Period from		Three Months Ended
	August 1, 2017		July 1, 2017
	through		through		June 30,		March 31,		December 31,		September 30,
	September 30, 2017		July 31, 2017		2017		2017		2016		2016
AVAILABLE DAYS - TOTAL FLEET:

Americas fleet:
Deepwater		2,284		1,261		3,731		3,690		3,812		3,864
Towing-supply		1,156		617		1,941		1,980		2,012		2,120
Other		488		248		728		720		736		805
Total		3,928		2,126		6,400		6,390		6,560		6,789
Middle East/Asia Pacific fleet:
Deepwater		1,281		651		2,001		2,070		2,068		1,993
Towing-supply		2,616		1,364		3,974		3,952		4,232		4,232
Other		61		31		91		90		92		92
Total		3,958		2,046		6,066		6,112		6,392		6,317
Africa/Europe fleet:
Deepwater		2,684		1,312		3,732		3,650		3,822		3,830
Towing-supply		2,681		1,364		4,004		3,886		3,956		3,956
Other		1,965		1,056		3,352		3,420		3,496		3,496
Total		7,330		3,732		11,088		10,956		11,274		11,282
Worldwide fleet:
Deepwater		6,249		3,224		9,464		9,410		9,702		9,687
Towing-supply		6,453		3,345		9,919		9,818		10,200		10,308
Other		2,514		1,335		4,171		4,230		4,324		4,393
Total		15,216		7,904		23,554		23,458		24,226		24,388

	Successor		Predecessor
	Period from		Period from		Three Months Ended
	August 1, 2017		July 1, 2017
	through		through		June 30,		March 31,		December 31,		September 30,
	September 30, 2017		July 31, 2017		2017		2017		2016		2016
OUT-OF-SERVICE - STACKED DAYS:

Americas fleet:
Deepwater		1,522		837		2,110		1,874		1,990		1,866
Towing-supply		582		307		849		900		969		939
Other		244		124		273		270		276		345
Total		2,348		1,268		3,232		3,044		3,235		3,150
Middle East/Asia Pacific fleet:
Deepwater		488		258		702		900		1,179		1,082
Towing-supply		908		527		1,446		1,240		1,455		1,215
Other		61		31		91		90		92		92
Total		1,457		816		2,239		2,230		2,726		2,389
Africa/Europe fleet:
Deepwater		610		310		1,047		1,310		1,507		1,305
Towing-supply		1,049		527		1,554		1,637		1,507		1,219
Other		829		552		1,896		1,887		1,620		1,247
Total		2,488		1,389		4,497		4,834		4,634		3,771
Worldwide fleet:
Deepwater		2,620		1,405		3,859		4,084		4,676		4,253
Towing-supply		2,539		1,361		3,849		3,777		3,931		3,373
Other		1,134		707		2,260		2,247		1,988		1,684
Total		6,293		3,473		9,968		10,108		10,595		9,310

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

	Successor		Predecessor
	Period from		Period from		Three Months Ended
	August 1, 2017		July 1, 2017
	through		through		June 30,		March 31,		December 31,		September 30,
	September 30, 2017		July 31, 2017		2017		2017		2016		2016
AVAILABLE DAYS - ACTIVE FLEET:

Americas fleet:
Deepwater		762		424		1,621		1,816		1,822		1,998
Towing-supply		574		310		1,092		1,080		1,043		1,181
Other		244		124		455		450		460		460
Total		1,580		858		3,168		3,346		3,325		3,639
Middle East/Asia Pacific fleet:
Deepwater		793		393		1,299		1,170		889		911
Towing-supply		1,708		837		2,528		2,712		2,777		3,017
Other		—		—		—		—		—		—
Total		2,501		1,230		3,827		3,882		3,666		3,928
Africa/Europe fleet:
Deepwater		2,074		1,002		2,685		2,340		2,315		2,525
Towing-supply		1,632		837		2,450		2,249		2,449		2,737
Other		1,136		504		1,456		1,533		1,876		2,249
Total		4,842		2,343		6,591		6,122		6,640		7,511
Worldwide fleet:
Deepwater		3,629		1,819		5,605		5,326		5,026		5,434
Towing-supply		3,914		1,984		6,070		6,041		6,269		6,935
Other		1,380		628		1,911		1,983		2,336		2,709
Total		8,923		4,431		13,586		13,350		13,631		15,078

Note (G): Available days - active fleet equals available days - total fleet less out-of-service - stacked days.

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

	Successor			Predecessor
	Period from			Period from			Three Months Ended
	August 1, 2017			July 1, 2017
	through			through			June 30,			March 31,			December 31,			September 30,
	September 30, 2017			July 31, 2017			2017			2017			2016			2016
UTILIZATION - TOTAL FLEET:

Americas fleet:
Deepwater		21.8	%		18.1	%		23.4	%		29.7	%		32.1	%		38.1	%
Towing-supply		35.6			37.0			36.4			41.8			36.4			37.5
Other		46.1			43.8			50.0			45.7			37.0			34.1
Total		28.9	%		26.6	%		30.3	%		35.2	%		34.0	%		37.5	%
Middle East/Asia Pacific fleet:
Deepwater		45.6	%		40.8	%		54.4	%		45.9	%		35.9	%		35.0	%
Towing-supply		57.1			57.2			57.2			54.2			52.9			54.7
Other		—			—			—			—			—			—
Total		52.5	%		51.1	%		55.4	%		50.6	%		46.7	%		47.7	%
Africa/Europe fleet:
Deepwater		61.3	%		53.0	%		51.7	%		53.6	%		42.9	%		44.0	%
Towing-supply		45.0			49.1			51.7			42.1			47.4			42.7
Other		47.8			32.8			31.3			31.0			37.6			42.8
Total		51.7	%		45.8	%		45.6	%		42.5	%		42.8	%		43.2	%
Worldwide fleet:
Deepwater		43.6	%		36.9	%		41.1	%		42.6	%		37.2	%		39.8	%
Towing-supply		48.2			50.1			50.9			46.9			47.5			46.6
Other		46.3			34.1			33.9			32.8			36.7			40.3
Total		46.0	%		42.0	%		44.0	%		42.6	%		41.4	%		42.8	%

Note (H): Utilization total fleet equals days worked / available days total fleet.

	Successor			Predecessor
	Period from			Period from			Three Months Ended
	August 1, 2017			July 1, 2017
	through			through			June 30,			March 31,			December 31,			September 30,
	September 30, 2017			July 31, 2017			2017			2017			2016			2016
UTILIZATION - ACTIVE FLEET:

Americas fleet:
Deepwater		65.3	%		53.9	%		53.8	%		60.4	%		67.2	%		73.7	%
Towing-supply		71.7			73.5			64.7			76.6			70.3			67.3
Other		92.1			87.5			79.9			73.1			59.2			59.8
Total		71.7	%		65.8	%		61.3	%		67.3	%		67.1	%		69.9	%
Middle East/Asia Pacific fleet:
Deepwater		73.6	%		67.5	%		83.8	%		81.2	%		83.6	%		76.6	%
Towing-supply		87.5			93.2			89.9			79.0			80.6			76.7
Other		—			—			—			—			—			—
Total		83.1	%		85.0	%		87.8	%		79.7	%		81.4	%		76.7	%
Africa/Europe fleet:
Deepwater		79.3	%		69.4	%		71.9	%		83.7	%		70.8	%		66.8	%
Towing-supply		74.0			80.0			84.6			72.7			76.6			61.8
Other		82.7			68.7			72.1			69.1			70.0			66.5
Total		78.3	%		73.0	%		76.6	%		76.0	%		72.7	%		64.9	%
Worldwide fleet:
Deepwater		75.1	%		65.4	%		69.4	%		75.2	%		71.8	%		71.0	%
Towing-supply		79.5			84.5			83.2			76.2			77.3			69.2
Other		84.4			72.4			74.0			70.0			67.9			65.4
Total		78.5	%		75.0	%		76.2	%		74.9	%		73.7	%		69.2	%

Note (I): Utilization active fleet equals days worked / available days - active fleet.

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

		Successor		Predecessor
		Period from		Period from		Three Months Ended
		August 1, 2017		July 1, 2017
		through		through		June 30,		March 31,		December 31,		September 30,
		September 30, 2017		July 31, 2017		2017		2017		2016		2016
AVERAGE VESSEL DAY RATES:

Americas fleet:
Deepwater (J)	$		19,698		18,845		19,869		57,311		25,181		25,302
Towing-supply			13,547		16,435		15,959		17,816		16,239		16,401
Other			9,250		8,384		9,071		9,015		10,384		10,246
Total (J)	$		15,394		15,863		16,423		35,756		20,436		20,892
Middle East/Asia Pacific fleet:
Deepwater	$		9,805		10,054		9,825		9,927		11,576		12,687
Towing-supply			7,325		7,537		7,511		8,045		7,872		8,954
Other			—		—		—		—		—		—
Total	$		8,022		8,175		8,261		8,623		8,795		9,819
Africa/Europe fleet:
Deepwater	$		10,687		10,908		11,482		11,763		13,262		14,416
Towing-supply			12,464		12,139		13,040		13,940		13,917		15,339
Other			4,068		3,234		3,265		3,652		4,169		4,288
Total	$		9,613		9,837		10,413		10,682		11,042		11,627
Worldwide fleet:
Deepwater (J)	$		12,142		12,242		12,897		23,797		16,961		18,260
Towing-supply			10,141		10,583		10,961		11,893		11,476		12,436
Other			5,068		4,463		4,759		4,922		5,235		5,213
Total (J)	$		10,077		10,339		10,842		15,693		12,461		13,364

Note (J): Included in Americas fleet deepwater, Americas fleet total, Worldwide fleet deepwater and Worldwide fleet total average day rates for the quarter ended March 31, 2017 (Predecessor) is $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract. Excluding the early cancellation revenue, Americas fleet deepwater, Americas fleet total, Worldwide fleet deepwater and Worldwide fleet total average day rates would have been $21,602, $18,374, $14,021 and $11,778, respectively, for the quarter ended March 31, 2017 (Predecessor).

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

		Successor			Predecessor
		Period from			Period from			Three Months Ended
		August 1, 2017			July 1, 2017
		through			through			June 30,			March 31,			December 31,			September 30,
(In thousands)		September 30, 2017			July 31, 2017			2017			2017			2016			2016
Americas
Vessel revenues (K)	$		17,449			8,961			31,887			80,533			45,577			53,125

Vessel operating costs:
Crew costs	$		8,402			4,250			14,457			15,761			16,416			17,970
Routine repairs and maintenance			1,265			945			2,705			2,879			3,017			3,446
Major repairs			206			3,961			1,136			7			1,435			1,860
Insurance and loss reserves			404			201			933			(519	)		664			826
Fuel, lube and supplies			2,175			760			3,394			3,896			2,382			3,168
Other			1,771			536			4,655			3,555			3,216			1,158
Total vessel operating costs	$		14,223			10,653			27,280			25,579			27,130			28,428

Vessel operating margin ($)	$		3,226			(1,692	)		4,607			54,954			18,447			24,697
Vessel operating margin (%)			18.5	%		-18.9	%		14.4	%		68.2	%		40.5	%		46.5	%

Vessel operating lease expense	$		—			62			3,787			6,627			6,626			6,626
Vessel depreciation	$		2,291			3,197			10,748			11,297			12,039			12,700
Amortization of deferred drydocking and survey costs	$		4			—			—			—			—			—
Vessel operations general and administrative expenses	$		3,582			1,899			5,771			6,412			6,024			6,548
Vessel operating profit (loss)	$		(2,651	)		(6,850	)		(15,699	)		30,618			(6,242	)		(1,177	)

Americas - Select operating statistics
Average vessels - Total fleet			64			69			70			71			71			73
Utilization - Total fleet			28.9	%		26.6	%		30.3	%		35.2	%		34.0	%		37.5	%

Average vessels - Active fleet			26			28			35			37			36			39
Utilization - Active fleet			71.7	%		65.8	%		61.3	%		67.3	%		67.1	%		69.9	%

Average day rates (K)	$		15,394			15,863			16,423			35,756			20,436			20,892

Vessels commencing drydocks			2			5			2			2			2			2

Major repairs expense and deferred drydocking and survey costs:
Major repairs expense	$		206			3,961			1,136			7			1,435			1,860
Cash paid for deferred drydocking and survey costs	$		243			—			—			—			—			—
	$		449			3,961			1,136			7			1,435			1,860

Deferred drydocking and survey costs - beginning balance	$		—			—			—			—			—			—
Cash paid for deferred drydocking and survey costs	$		243			—			—			—			—			—
Amortization of deferred drydocking and survey costs	$		4			—			—			—			—			—
Deferred drydocking and survey costs - ending balance	$		239			—			—			—			—			—

Note (K): Included in Americas vessel revenue for the quarter ended March 31, 2017 (Predecessor) is $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract. Excluding the early cancellation revenue, Americas average day rates would have been $18,374 for the quarter ended March 31, 2017 (Predecessor).

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

		Successor			Predecessor
		Period from			Period from			Three Months Ended
		August 1, 2017			July 1, 2017
		through			through			June 30,			March 31,			December 31,			September 30,
(In thousands)		September 30, 2017			July 31, 2017			2017			2017			2016			2016
Middle East/Asia Pacific
Vessel revenues	$		16,669			8,547			27,766			26,678			26,233			29,584

Vessel operating costs:
Crew costs	$		5,962			3,139			9,795			9,495			9,264			9,818
Routine repairs and maintenance			1,722			665			2,164			2,318			1,801			2,503
Major repairs			405			(85	)		511			3,988			1,631			1,066
Insurance and loss reserves			376			250			681			(732	)		659			874
Fuel, lube and supplies			1,268			457			1,539			2,543			1,568			2,066
Other			2,001			976			2,908			3,351			3,963			3,250
Total vessel operating costs	$		11,734			5,402			17,598			20,963			18,886			19,577

Vessel operating margin ($)	$		4,935			3,145			10,168			5,715			7,347			10,007
Vessel operating margin (%)			29.6	%		36.8	%		36.6	%		21.4	%		28.0	%		33.8	%

Vessel operating lease expense	$		—			—			—			—			—			—
Vessel depreciation	$		1,807			2,221			7,746			8,499			10,677			10,779
Amortization of deferred drydocking and survey costs	$		—			—			—			—			—			—
Vessel operations general and administrative expenses	$		2,184			1,042			3,738			3,380			5,038			4,399
Vessel operating profit (loss)	$		944			(118	)		(1,316	)		(6,164	)		(8,368	)		(5,171	)

Middle East/Asia Pacific - Select operating statistics
Average vessels - Total fleet			65			66			67			68			69			69
Utilization - Total fleet			52.5	%		51.1	%		55.4	%		50.6	%		46.7	%		47.7	%

Average vessels - Active fleet			41			40			42			44			39			43
Utilization - Active fleet			83.1	%		85.0	%		87.8	%		79.7	%		81.4	%		76.7	%

Average day rates	$		8,022			8,175			8,261			8,623			8,795			9,819

Vessels commencing drydocks			1			—			1			5			3			3

Major repairs expense and deferred drydocking and survey costs:
Major repairs expense	$		405			(85	)		511			3,988			1,631			1,066
Cash paid for deferred drydocking and survey costs	$		—			—			—			—			—			—
	$		405			(85	)		511			3,988			1,631			1,066

Deferred drydocking and survey costs - beginning balance	$		—			—			—			—			—			—
Cash paid for deferred drydocking and survey costs	$		—			—			—			—			—			—
Amortization of deferred drydocking and survey costs	$		—			—			—			—			—			—
Deferred drydocking and survey costs - ending balance	$		—			—			—			—			—			—

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

		Successor			Predecessor
		Period from			Period from			Three Months Ended
		August 1, 2017			July 1, 2017
		through			through			June 30,			March 31,			December 31,			September 30,
(In thousands)		September 30, 2017			July 31, 2017			2017			2017			2016			2016
Africa/Europe
Vessel revenues	$		36,453			16,832			52,604			49,694			53,310			56,652

Vessel operating costs:
Crew costs	$		13,341			7,054			17,958			16,573			17,704			21,582
Routine repairs and maintenance			2,354			1,320			3,338			3,324			3,384			3,519
Major repairs			421			2,390			3,990			4,558			1,946			1,046
Insurance and loss reserves			899			374			1,510			(516	)		819			937
Fuel, lube and supplies			3,547			1,634			4,495			2,840			3,832			4,942
Other			5,782			3,838			7,604			7,524			8,657			7,063
Total vessel operating costs	$		26,344			16,610			38,895			34,303			36,342			39,089

Vessel operating margin ($)	$		10,109			222			13,709			15,391			16,968			17,563
Vessel operating margin (%)			27.7	%		1.3	%		26.1	%		31.0	%		31.8	%		31.0	%

Vessel operating lease expense	$		1,124			561			1,755			1,816			1,815			1,815
Vessel depreciation	$		3,561			5,294			16,398			16,377			17,166			18,430
Amortization of deferred drydocking and survey costs	$		—			—			—			—			—			—
Vessel operations general and administrative expenses	$		5,448			2,938			8,493			9,653			9,546			11,390
Vessel operating loss	$		(24	)		(8,571	)		(12,937	)		(12,455	)		(11,559	)		(14,072	)

Africa/Europe - Select operating statistics
Average vessels - Total fleet			120			120			122			122			123			123
Utilization - Total fleet			51.7	%		45.8	%		45.6	%		42.5	%		42.8	%		43.2	%

Average vessels - Active fleet			79			75			73			68			73			82
Utilization - Active fleet			78.3	%		73.0	%		76.6	%		76.0	%		72.7	%		64.9	%

Average day rates	$		9,613			9,837			10,413			10,682			11,042			11,627

Vessels commencing drydocks			5			3			6			7			4			1

Major repairs expense and deferred drydocking and survey costs:
Major repairs expense	$		421			2,390			3,990			4,558			1,946			1,046
Cash paid for deferred drydocking and survey costs	$		149			—			—			—			—			—
	$		570			2,390			3,990			4,558			1,946			1,046

Deferred drydocking and survey costs - beginning balance	$		—			—			—			—			—			—
Cash paid for deferred drydocking and survey costs	$		149			—			—			—			—			—
Amortization of deferred drydocking and survey costs	$		—			—			—			—			—			—
Deferred drydocking and survey costs - ending balance	$		149			—			—			—			—			—

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

		Successor			Predecessor
		Period from			Period from			Three Months Ended
		August 1, 2017			July 1, 2017
		through			through			June 30,			March 31,			December 31,			September 30,
(In thousands)		September 30, 2017			July 31, 2017			2017			2017			2016			2016
Worldwide
Vessel revenues (L)	$		70,571			34,340			112,257			156,905			125,120			139,361

Vessel operating costs:
Crew costs	$		27,705			14,443			42,210			41,829			43,384			49,370
Routine repairs and maintenance			5,341			2,930			8,207			8,521			8,202			9,468
Major repairs			1,032			6,266			5,637			8,553			5,012			3,972
Insurance and loss reserves			1,679			825			3,124			(1,767	)		2,142			2,637
Fuel, lube and supplies			6,990			2,851			9,428			9,279			7,782			10,176
Other			9,554			5,350			15,167			14,430			15,836			11,471
Total vessel operating costs	$		52,301			32,665			83,773			80,845			82,358			87,094

Vessel operating margin ($)	$		18,270			1,675			28,484			76,060			42,762			52,267
Vessel operating margin (%)			25.9	%		4.9	%		25.4	%		48.5	%		34.2	%		37.5	%

Vessel operating lease expense	$		1,124			623			5,542			8,443			8,441			8,441
Vessel depreciation	$		7,659			10,712			34,892			36,173			39,882			41,909
Amortization of deferred drydocking and survey costs	$		4			—			—			—			—			—
Vessel operations general and administrative expenses	$		11,214			5,879			18,002			19,445			20,608			22,337
Vessel operating profit (loss)	$		(1,731	)		(15,539	)		(29,952	)		11,999			(26,169	)		(20,420	)

Worldwide - Select operating statistics
Average vessels - Total fleet			249			255			259			261			263			265
Utilization - Total fleet			46.0	%		42.0	%		44.0	%		42.6	%		41.4	%		42.8	%

Average vessels - Active fleet			146			143			150			149			148			164
Utilization - Active fleet			78.5	%		75.0	%		76.2	%		74.9	%		73.7	%		69.2	%

Average day rates (L)	$		10,077			10,339			10,842			15,693			12,461			13,364

Vessels commencing drydocks			8			8			9			14			9			6

Major repairs expense and deferred drydocking and survey costs:
Major repairs expense	$		1,032			6,266			5,637			8,553			5,012			3,972
Cash paid for deferred drydocking and survey costs	$		392			—			—			—			—			—
	$		1,424			6,266			5,637			8,553			5,012			3,972

Deferred drydocking and survey costs - beginning balance	$		—			—			—			—			—			—
Cash paid for deferred drydocking and survey costs	$		392			—			—			—			—			—
Amortization of deferred drydocking and survey costs	$		4			—			—			—			—			—
Deferred drydocking and survey costs - ending balance	$		388			—			—			—			—			—

Note (L): Included in Worldwide vessel revenue for the quarter ended March 31, 2017 (Predecessor) is $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract. Excluding the early cancellation revenue, Worldwide average day rates would have been $11,778 for the quarter ended March 31, 2017 (Predecessor).

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

		Successor			Predecessor
		Period from			Period from			Three Months Ended
		August 1, 2017			July 1, 2017
		through			through			June 30,			March 31,			December 31,			September 30,
(In thousands)		September 30, 2017			July 31, 2017			2017			2017			2016			2016


Consolidated EBITDA (M) (N) (O)	$		4,480			(7,240	)		6,085			55,007			18,842			20,883

Restructuring-related professional services costs			(636	)		(22,858	)		(11,874	)		(16,805	)		(5,188	)		(3,054	)
Asset impairments			—			(21,325	)		(163,423	)		(64,857	)		(253,422	)		(129,562	)
Reorganization items (excluding professional services costs)			(1,244	)		(1,060,871	)		(308,011	)		—			—			—
Interest and other debt costs			(5,240	)		(574	)		(10,605	)		(21,008	)		(18,587	)		(18,477	)
Income tax benefit (expense)			(4,745	)		1,529			(295	)		(1,717	)		2,884			(3,568	)
Depreciation			(8,138	)		(11,160	)		(36,287	)		(37,592	)		(41,302	)		(43,845	)
Amortization of deferred drydocking and survey costs			(4	)		—			—			—			—			—

Net loss	$		(15,527	)		(1,122,499	)		(524,410	)		(86,972	)		(296,773	)		(177,623	)


		Successor			Predecessor
		Period from			Period from			Three Months Ended
		August 1, 2017			July 1, 2017
		through			through			June 30,			March 31,			December 31,			September 30,
(In thousands)		September 30, 2017			July 31, 2017			2017			2017			2016			2016


Consolidated EBITDA (M) (N) (O)	$		4,480			(7,240	)		6,085			55,007			18,842			20,883

Restructuring-related professional service costs			(636	)		(22,858	)		(11,874	)		(16,805	)		(5,188	)		(3,054	)
Cash paid for interest			(59	)		(1,144	)		(433	)		(8,218	)		(28,260	)		(7,476	)
Cash paid for taxes			(1,392	)		(1,129	)		(3,611	)		(2,167	)		(7,959	)		(5,784	)
Cash paid for deferred drydocking costs			(392	)		—			—			—			—			—
Change in net working capital, excluding cash			(16,292	)		33,633			(9,856	)		42,205			(13,247	)		13,059
Equity in net earnings (losses) of unconsol. companies			(1,044	)		(151	)		(4,101	)		(5,062	)		(892	)		(1,767	)
Stock-based compensation expense			1,173			1,381			326			(888	)		1,538			1,092
Gain on asset disposition			(4	)		(372	)		(3,189	)		(6,064	)		(6,139	)		(6,253	)
Changes in other, net			(3,643	)		(344	)		3,290			12,142			1,578			(399	)

Net cash provided (used) in operating activities	$		(17,809	)		1,776			(23,363	)		70,150			(39,727	)		10,301

Note (M): Consolidated EBITDA excludes interest and other debt costs, income tax expense, depreciation and amortization, and restructuring-related professional services costs. Restructuring-related professional services costs have been separately presented in the above table. Such professional service costs incurred prior to May 17, 2017 were included in general and administrative expenses and such costs incurred subsequent to May 17, 2017 were included in reorganization items in the company's Condensed Consolidated Statements of Earnings (Loss).

Note (N): Consolidated EBITDA for the period from August 1, 2017 to September 30, 2017 (Successor), the period July 1, 2017 through July 31, 2017 (Predecessor), the three months ended June 30, 2017 (Predecessor), March 31, 2017 (Predecessor), December 31, 2016 (Predecessor) and September 30, 2016 (Predecessor) includes non-cash, stock-based compensation expense of $1,173, $1,381, $326, $(888), $1,538 and $1,092, respectively.

Note (O): Consolidated EBITDA for the period from August 1, 2017 to September 30, 2017 (Successor), the period July 1, 2017 through July 31, 2017 (Predecessor), the three months ended June 30, 2017 (Predecessor), March 31, 2017 (Predecessor), December 31, 2016 (Predecessor) and September 30, 2016 (Predecessor) includes vessel operating lease expense of $1,124, $623, $5,542, $8,443, $8,441 and $8,441, respectively.

Non-GAAP Financial Measures

We disclose and discuss EBITDA as a non-GAAP financial measure in our public releases, including quarterly earnings releases, investor conference calls and other filings with the Securities and Exchange Commission. We define EBITDA as earnings (net income) before interest and other debt costs, income tax expense, depreciation and amortization, reorganization items, asset impairments, and restructuring-related professional services costs. Our measure of EBITDA may not be comparable to similarly titled measures presented by other companies. Other companies may calculate EBITDA differently than we do, which may limit its usefulness as a comparative measure.

We view EBITDA both as a performance and liquidity measure and, as such, we believe that the GAAP financial measures most directly comparable to it are net income and net cash provided (used) in operating activities, respectively. Because EBITDA is not a measure of financial performance calculated in accordance with GAAP, it should not be considered in isolation or as a substitute for operating income, net income or loss, cash provided (used) in operating activities, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP.

EBITDA is widely used by investors and other users of our financial statements as a supplemental financial measure that, when viewed with our GAAP results and the accompanying reconciliations, we believe EBITDA provides additional information that is useful to gain an understanding of the factors and trends affecting our ability to service debt, pay taxes and fund drydocking and survey costs and capital expenditures. We also believe the disclosure of EBITDA helps investors meaningfully evaluate and compare our cash flow generating capacity from quarter to quarter and year to year.

EBITDA is also a financial metric used by management (i) as a supplemental internal measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; (ii) to compare to the EBITDA of other companies when evaluating potential acquisitions; and (iii) to assess our ability to service existing fixed charges and incur additional indebtedness.

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