Nov 8, 2017 SOURCE: PR NewsWire
Tidewater Reports Results For The Three Months Ended September 30, 2017
NEW ORLEANS, Nov. 8, 2017 /PRNewswire/ -- 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.
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 166 (24) 867
interests
---------
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 120,271 123,262
$16,165 as of September 30, 2017 and March 31, 2017, respectively
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, - 4,712
47,121,304 shares issued and outstanding at March 31, 2017
Predecessor Additional paid-in capital - 165,221
Successor Common stock of $0.001 par value, 125,000,000 shares authorized 21 -
20,738,076 shares issued and outstanding at September 30, 2017
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, 82 77 119
net of tax of $0, $0 and $0
Change in loss on derivative contract, - - 72
net of tax of $0, $0 and $0
Changes in supplemental executive retirement plan - (536) -
liability, net of tax of $0, $0 and $0
Changes in minimum pension liability, - (594) -
net of tax of $0, $0 and $0
Change in other benefit plan minimum liability, - (1,468) -
net of tax of $0, $0 and $0
---------------------------
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, 82 163 280
net of tax of $0, $0 and $0
Change in loss on derivative contract, - - 143
net of tax of $0, $0 and $0
Changes in supplemental executive retirement plan - (536) -
liability, net of tax of $0, $0 and $0
Changes in minimum pension liability, - (594) -
net of tax of $0, $0 and $0
Change in other benefit plan minimum liability, - (1,468) -
net of tax of $0, $0 and $0
---------------------------
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 (4,797) (7%) (2,840) (8%) (10,006) (7%)
expenses (B)
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 1,305 2% 269 1% 1,313 1%
companies
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 (4,797) (7%) (17,542) (12%) (20,499) (7%)
expenses (B)
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 1,305 2% 4,786 3% 1,312 <1%
companies
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 1,305 269 4,517 2,841 1,557 1,313
companies
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 166 (24) 24 7,883 903 867
noncontrolling interests
------------------------
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 $ - - 6,709 16,805 5,188 3,054
expenses
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 25,729 49,216 45,115 42,516 38,200
unconsolidated companies
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 $ 4 - - - - -
and survey costs
Vessel operations general and $ 3,582 1,899 5,771 6,412 6,024 6,548
administrative expenses
-----------------------
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 $ 243 - - - - -
drydocking and survey costs
$ 449 3,961 1,136 7 1,435 1,860
Deferred drydocking and survey $ - - - - - -
costs - beginning balance
Cash paid for deferred drydocking $ 243 - - - - -
and survey costs
Amortization of deferred $ 4 - - - - -
drydocking and survey costs
Deferred drydocking and survey $ 239 - - - - -
costs - ending balance
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 $ 2,184 1,042 3,738 3,380 5,038 4,399
administrative expenses
-----------------------
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 $ 5,448 2,938 8,493 9,653 9,546 11,390
administrative expenses
-----------------------
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 $ 149 - - - - -
drydocking and survey costs
$ 570 2,390 3,990 4,558 1,946 1,046
Deferred drydocking and survey $ - - - - - -
costs - beginning balance
Cash paid for deferred drydocking $ 149 - - - - -
and survey costs
Amortization of deferred $ - - - - - -
drydocking and survey costs
Deferred drydocking and survey $ 149 - - - - -
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
------------- ------------------ ------------- ---- ---- ---- ----
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 $ 4 - - - - -
and survey costs
Vessel operations general and $ 11,214 5,879 18,002 19,445 20,608 22,337
administrative expenses
-----------------------
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 $ 392 - - - - -
drydocking and survey costs
$ 1,424 6,266 5,637 8,553 5,012 3,972
Deferred drydocking and survey $ - - - - - -
costs - beginning balance
Cash paid for deferred drydocking $ 392 - - - - -
and survey costs
Amortization of deferred $ 4 - - - - -
drydocking and survey costs
Deferred drydocking and survey $ 388 - - - - -
costs - ending balance
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 (636) (22,858) (11,874) (16,805) (5,188) (3,054)
costs
Asset impairments (21,325) (163,423) (64,857) (253,422) (129,562)
-
Reorganization items (excluding (1,244) (1,060,871) (308,011) - - -
professional services costs)
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 (4) - - - - -
survey costs
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 (636) (22,858) (11,874) (16,805) (5,188) (3,054)
costs
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 (16,292) 33,633 (9,856) 42,205 (13,247) 13,059
cash
Equity in net earnings (losses) of unconsol. (1,044) (151) (4,101) (5,062) (892) (1,767)
companies
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 $ (17,809) 1,776 (23,363) 70,150 (39,727) 10,301
activities
==========
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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SOURCE Tidewater Inc.
