Tidewater Reports Results For The Three Months Ended December 31, 2017 and The Nine Month Transition Period From April 1, 2017 through December 31, 2017
Tidewater Reports Results For The Three Months Ended December 31, 2017 and The Nine Month Transition Period From April 1, 2017 through December 31, 2017
HOUSTON, March 14, 2018 /PRNewswire/ -- Tidewater Inc. (NYSE:TDW) announced today a net loss for the three months ended December 31, 2017 (Successor), of $23.6 million, or $1.02 per common share, on revenues of $104.5 million. For the five month period from August 1, 2017 through December 31, 2017 (Successor), the net loss was $39.3 million, or $1.82 per common share, on revenues of $178.8 million.
As more fully explained in the company's Form 10-K for the nine month transition period ended December 31, 2017, 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 the financial position and results of operations of the company through July 31, 2017.
Included in the $23.6 million ($1.02 per common share) net loss for the three months ending December 31, 2017 (Successor) were the following:
-- $16.8 million ($0.72 per common share) in non-cash asset impairment
charges that resulted from impairment reviews undertaken during the
three months ended December 31, 2017.
-- $2.4 million ($0.10 per common share) of reorganization items related to
the company's Chapter 11 proceedings.
Included in the $39.3 million ($1.82 per common share) net loss for the five month period from August 1, 2017 through December 31, 2017 (Successor) were the following:
-- $16.8 million ($0.78 per share) in non-cash asset impairment charges
that resulted from impairment reviews undertaken during the five month
period ended December 31, 2017.
-- $4.3 million ($0.20 per share) of reorganization items related to the
company's Chapter 11 proceedings.
Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) for the three months ended December 31, 2017 (Successor), which excludes reorganization items and asset impairment charges, but includes $2.6 million of stock-based compensation expense, was $13.3 million. EBITDA for the five month period from August 1, 2017 through December 31, 2017 (Successor), which excludes reorganization items and asset impairment charges, but includes $3.7 million of stock-based compensation expense and $1.2 million of vessel operating lease expense for vessels returned to their respective owners in connection with the company's Plan of Reorganization, was $17.7 million. (See disclosures related to Non-GAAP measures in other fleet and financial data beginning on page 13 herein.)
John Rynd, President and Chief Executive Officer of Tidewater stated, "The extended weakness in the offshore supply vessel market continued to be reflected in our fourth quarter financial results. While improvements in oil prices are encouraging, our customers have not yet committed to a meaningful increase in offshore exploration and development spending. As we continue to navigate a market that we expect to remain challenging in 2018, the management team remains focused on executing its post-restructuring business plan, including additional cost reductions, a targeted rationalization of the owned fleet, preserving a low-leverage balance sheet and maintaining a strong liquidity position."
Tom Bates, Chairman of the Board of Directors, added, "I would like to again thank Larry Rigdon for his leadership of the business during his tenure as interim President and Chief Executive Officer. Significant progress has been made in achieving the company's near-term objective of reaching a cash flow breakeven. John, Larry and I look forward to working with our fellow directors on behalf of all Tidewater stakeholders."
Tidewater will hold a conference call to discuss results for the three months ended December 31, 2017 on Thursday, March 15, 2018, at 10:00 a.m. Central Time. Investors and interested parties may listen to the teleconference via telephone by calling 1-888-771-4371 if calling from the U.S. or Canada (1-847-585-4405 if calling from outside the U.S.) and ask for the "Tidewater" call just prior to the scheduled start. A replay of the conference call will be available beginning at 12:00 p.m. Central Time on March 15, 2018, and will continue until 11:59 p.m. Central Time on March 17, 2018. 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 46593166.
A simultaneous webcast of the conference call will be available online at the Tidewater Inc. website, (www.tdw.com). The online replay will be available until April 15, 2018.
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 owns and operates one of the largest fleets of Offshore Support Vessels in the industry, with over 60 years of experience supporting offshore energy exploration and production activities worldwide.
Note: all per-share amounts are stated on a diluted basis.
Financial information is displayed on the next page.
TIDEWATER INC.
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
(In thousands, except share and per share data)
Successor Predecessor
--------- -----------
Three Months Three Months
Ended Ended
December 31, 2017 December 31, 2016
----------------- -----------------
Revenues:
Vessel revenues $101,313 125,120
Other operating revenues 3,140 4,095
------------------------ ----- -----
104,453 129,215
------- -------
Costs and expenses:
Vessel operating costs 68,201 82,358
Costs of other operating revenues 1,519 2,714
General and administrative (A) 30,373 34,151
Vessel operating leases 91 8,441
Depreciation and amortization 12,195 41,302
Gain on asset dispositions, net (6,612) (6,139)
Asset impairments 16,777 253,422
----------------- ------ -------
122,544 416,249
------- -------
Operating loss (18,091) (287,034)
Other income (expenses):
Foreign exchange gain (loss) (349) 2,970
Equity in net earnings of unconsolidated companies 825 1,557
Interest income and other 1,898 1,437
Reorganization items (B) (2,419) -
Interest and other debt costs (7,769) (18,587)
----------------------------- ------ -------
(7,814) (12,623)
------ -------
Loss before income taxes (25,905) (299,657)
Income tax (benefit) expense (2,706) (2,884)
---------------------------- ------ ------
Net loss $(23,199) (296,773)
Less: Net income (loss) attributable to noncontrolling interests 374 903
---------------------------------------------------------------- --- ---
Net loss attributable to Tidewater Inc. $(23,573) (297,676)
--------------------------------------- -------- --------
Basic loss per common share $(1.02) (6.32)
=========================== ====== =====
Diluted loss per common share $(1.02) (6.32)
============================= ====== =====
Weighted average common shares outstanding (C) 23,137,909 47,068,079
Dilutive effect of stock options and restricted stock - -
----------------------------------------------------- --- ---
Adjusted weighted average common shares 23,137,909 47,068,079
======================================= ========== ==========
Note (A): Restructuring-related professional services costs for the three months ended December 31, 2017 (Successor) are included in reorganization items. Restructuring-related professional services costs included in general and administrative expenses for the three months ended December 31, 2016 (Predecessor), were $5.2 million.
Note (B): Restructuring-related professional services and sale leaseback redelivery costs included in reorganization items for the three months ended December 31, 2017 (Successor) were $2.0 million and $0.4 million, respectively.
Note (C): Weighted average shares outstanding include 924,125 shares issuable upon the exercise of Jones Act-related New Creditor Warrants held by U.S. citizens.
TIDEWATER INC.
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
(In thousands, except share and per share data)
Successor Predecessor
--------- -----------
Period from Period from
August 1, 2017 April 1, 2017 Nine Months
through through Ended
December 31, 2017 July 31, 2017 December 31, 2016
----------------- ------------- -----------------
Revenues:
Vessel revenues $171,884 146,597 426,911
Other operating revenues 6,869 4,772 13,951
------------------------ ----- ----- ------
178,753 151,369 440,862
------- ------- -------
Costs and expenses:
Vessel operating costs 120,502 116,438 278,326
Costs of other operating revenues 3,792 2,348 10,040
General and administrative (D) 46,619 41,832 104,152
Vessel operating leases 1,215 6,165 25,323
Depreciation and amortization 20,337 47,447 129,699
Gain on asset dispositions, net (6,616) (3,561) (18,035)
Asset impairments 16,777 184,748 419,870
----------------- ------ ------- -------
202,626 395,417 949,375
------- ------- -------
Operating loss (23,873) (244,048) (508,513)
Other income (expenses):
Foreign exchange loss (407) (3,181) (2,302)
Equity in net earnings of unconsolidated companies 2,130 4,786 2,869
Interest income and other 2,771 2,384 3,605
Reorganization items (E) (4,299) (1,396,905) -
Interest and other debt costs (13,009) (11,179) (54,018)
----------------------------- ------- ------- -------
(12,814) (1,404,095) (49,846)
------- ---------- -------
Loss before income taxes (36,687) (1,648,143) (558,359)
Income tax (benefit) expense 2,039 (1,234) 4,680
---------------------------- ----- ------ -----
Net loss $(38,726) (1,646,909) (563,039)
Less: Net income attributable to noncontrolling interests 540 - 2,224
--------------------------------------------------------- --- --- -----
Net loss attributable to Tidewater Inc. $(39,266) (1,646,909) (565,263)
--------------------------------------- -------- ---------- --------
Basic loss per common share $(1.82) (34.95) (12.01)
=========================== ====== ====== ======
Diluted loss per common share $(1.82) (34.95) (12.01)
============================= ====== ====== ======
Weighted average common shares outstanding (F) 21,539,143 47,121,330 47,067,887
Dilutive effect of stock options and restricted stock - - -
----------------------------------------------------- --- --- ---
Adjusted weighted average common shares 21,539,143 47,121,330 47,067,887
======================================= ========== ========== ==========
Note (D): Restructuring-related professional services costs for the five month period from August 1, 2017 through December 31, 2017 (Successor) are included in reorganization items. Restructuring-related professional services costs included in general and administrative expenses for the four month period from April 1, 2017 through July 31, 2017 (Predecessor), and for the nine months ended December 31, 2016 (Predecessor), were $6.7 million and $12.2 million, respectively.
Note (E): Reorganization items for the five month period from August 1, 2017 through December 31, 2017 (Successor) of $4.3 million include (i) $1.6 million related to re-delivery of sale leaseback vessels to their respective owners and (ii) $2.7 million of restructuring-related professional services costs.
Reorganization items for the four month 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) restructuring-related professional services costs 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.
Note (F): Weighted average shares outstanding include 924,125 shares issuable upon the exercise of Jones Act-related New Creditor Warrants held by U.S. citizens.
TIDEWATER INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and par value data)
Successor Predecessor
--------- -----------
December 31, March 31,
ASSETS 2017 2017
------ ---- ----
Current assets:
Cash and cash equivalents $432,035 706,404
Restricted cash 21,300 -
Trade and other receivables, less allowance for doubtful accounts of $1,800 114,184 123,262
and $16,165 as of December 31, 2017 and March 31, 2017, respectively
Due from affiliate 230,315 262,652
Marine operating supplies 28,220 30,560
Other current assets 19,130 18,409
-------------------- ------ ------
Total current assets 845,184 1,141,287
-------------------- ------- ---------
Investments in, at equity, and advances to unconsolidated companies 29,216 45,115
Net properties and equipment 837,520 2,864,762
Deferred drydocking and survey costs 3,208 -
Other assets 31,052 139,535
------------ ------ -------
Total assets $1,746,180 4,190,699
============ ========== =========
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $38,497 31,599
Accrued expenses 54,806 78,121
Due to affiliate 99,448 132,857
Accrued property and liability losses 2,585 3,583
Current portion of long-term debt 5,103 2,034,124
Other current liabilities 19,693 48,429
------------------------- ------ ------
Total current liabilities 220,132 2,328,713
------------------------- ------- ---------
Long-term debt 443,057 -
Deferred income taxes - 46,013
Accrued property and liability losses 2,471 10,209
Other liabilities and deferred credits 58,576 154,705
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, 22 -
22,115,916 shares issued and outstanding at December 31, 2017
Successor Additional paid-in capital 1,059,120 -
Retained (deficit) earnings (39,266) 1,475,329
Accumulated other comprehensive loss (147) (10,344)
------------------------------------ ---- -------
Total stockholders' equity 1,019,729 1,634,918
Noncontrolling interests 2,215 16,141
------------------------ ----- ------
Total equity 1,021,944 1,651,059
------------ --------- ---------
Total liabilities and equity $1,746,180 4,190,699
============================ ========== =========
TIDEWATER INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Successor Predecessor
--------- -----------
Three Months Three Months
Ended Ended
(In thousands) December 31, 2017 December 31, 2016
------------- ----------------- -----------------
Net loss $(23,199) (296,773)
Other comprehensive income:
Unrealized gains (losses) on available for sale securities, 174 (73)
net of tax of $0 and $0
Change in loss on derivative contract, - 70
net of tax of $0 and $0
Changes in supplemental executive retirement plan (1,582) -
liability, net of tax of $0 and $0
Changes in pension plan minimum liability, (357) -
net of tax of $0 and $0
Change in other benefit plan minimum liability, 1,536 -
net of tax of $0 and $0
-----------------------
Total comprehensive loss $(23,428) (296,776)
======================== ======== ========
TIDEWATER INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Successor Predecessor
--------- -----------
Period from Period from
August 1, 2017 April 1, 2017 Nine Months
through through Ended
(In thousands) December 31, 2017 July 31, 2017 December 31, 2016
------------- ----------------- ------------- -----------------
Net loss $(38,726) (1,646,909) (563,039)
Other comprehensive income:
Unrealized gains on available for sale securities, 256 163 207
net of tax of $0, $0 and $0
Change in loss on derivative contract, - - 213
net of tax of $0, $0 and $0
Changes in supplemental executive retirement plan (1,582) (536) -
liability, net of tax of $0, $0 and $0
Changes in pension plan minimum liability, (357) (594) -
net of tax of $0, $0 and $0
Change in other benefit plan minimum liability, 1,536 (1,468) -
net of tax of $0, $0 and $0
---------------------------
Total comprehensive loss $(38,873) (1,649,344) (562,619)
======================== ======== ========== ========
TIDEWATER INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Successor Predecessor
--------- -----------
Period from Period from
August 1, 2017 April 1, 2017 Nine Months
through through Ended
(In thousands) December 31, 2017 July 31, 2017 December 31, 2016
------------- ----------------- ------------- -----------------
Operating activities:
Net loss (G) $(38,726) (1,646,909) (563,039)
Adjustments to reconcile net loss to net cash provided by
operating activities:
Reorganization items (non-cash) - 1,368,882 -
Depreciation and amortization 20,131 47,447 129,699
Amortization of deferred drydocking and survey costs 206 - -
Amortization of debt premiums and discounts (715) - -
Provision for deferred income taxes - (5,543) -
Gain on asset dispositions, net (6,616) (3,561) (18,035)
Asset impairments 16,777 184,748 419,870
Changes in investments in, at equity, and advances to unconsolidated companies (4,531) (4,252) (2,551)
Compensation expense - stock-based 3,731 1,707 4,166
Changes in operating assets and liabilities, net:
Trade and other receivables 2,312 6,286 53,778
Changes in due to/from affiliate, net (2,373) 1,301 (4,132)
Marine operating supplies 1,229 88 2,693
Other current assets 10,305 (1,840) (6,065)
Accounts payable (1,259) 8,157 1,341
Accrued expenses (24,896) 17,245 (27,954)
Accrued property and liability losses (176) (822) 253
Other current liabilities (4,026) (2,337) (22,798)
Other liabilities and deferred credits (1,089) 2,884 (4,541)
Other, net (5,830) 4,932 (3,014)
---------- ------ ----- ------
Net cash used in operating activities (35,546) (21,587) (40,329)
------------------------------------- ------- ------- -------
Cash flows from investing activities:
Proceeds from sales of assets 32,742 2,172 12,333
Additions to properties and equipment (9,834) (2,265) (17,144)
Payments related to novated vessel construction contract - 5,272 -
Refunds from cancelled vessel construction contracts - - 25,565
---------------------------------------------------- --- --- ------
Net cash provided by investing activities 22,908 5,179 20,754
----------------------------------------- ------ ----- ------
Cash flows from financing activities:
Principal payment on long-term debt (1,176) (5,124) (7,337)
Cash payments to creditors pursuant to the plan of reorganization (93,719) (122,806) -
Cash received for issuance of common stock 2 - -
Other - (1,200) (1,722)
----- --- ------ ------
Net cash used in financing activities (94,893) (129,130) (9,059)
------------------------------------- ------- -------- ------
Net change in cash and cash equivalents (107,531) (145,538) (28,634)
Cash and cash equivalents at beginning of period 560,866 706,404 678,438
------------------------------------------------ ------- ------- -------
Cash and cash equivalents at end of period $453,335 560,866 649,804
========================================== ======== ======= =======
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest, net of amounts capitalized $8,223 1,577 62,469
Income taxes $4,654 4,740 24,749
Supplemental disclosure of non-cash investing activities:
Additions to properties and equipment $ - - 5,330
===================================== === === === =====
Note (G): Net loss includes restructuring-related professional services costs and costs related to the re-delivery of sale leaseback vessels to their respective owners for the five month period from August 1, 2017 through December 31, 2017 (Successor), the four month period from April 1, 2017 through July 31, 2017 (Predecessor), and for the nine months ended December 31, 2016 (Predecessor), of $4.3 million, $34.7 million and $12.2 million, respectively.
TIDEWATER INC.
CONSOLIDATED STATEMENTS OF EQUITY
Accumulated
Additional Retained other Non
Common paid-in earnings comprehensive controlling
(In thousands) stock capital (deficit) loss interest Total
Balance at March 31, 2016 (Predecessor) $4,707 166,604 2,135,075 (6,866) 6,034 2,305,554
Total comprehensive loss - - (660,118) (3,478) 10,107 (653,489)
Stock option activity - 1,146 - - - 1,146
Amortization/cancellation of restricted stock units 5 (2,529) 372 - - (2,152)
--------------------------------------------------- --- ------ --- --- --- ------
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 of 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 - - (39,266) (147) 540 (38,873)
Issuance of common stock 4 (2) - - - 2
Amortization/cancellation of restricted stock units - 3,731 - - - 3,731
--------------------------------------------------- --- ----- --- --- --- -----
Balance at December 31, 2017 (Successor) $22 1,059,120 (39,266) (147) 2,215 1,021,944
======================================= === ========= ======= ==== ===== =========
The company's vessel revenues and vessel operating costs and the related percentage of total vessel revenues, were as follows:
Successor Predecessor
--------- -----------
Three Months Three Months
Ended Ended
December 31, 2017 December 31, 2016
----------------- -----------------
(In thousands) % %
------------- --- ---
Vessel revenues:
Americas $28,335 28% 45,577 36%
Middle East/Asia Pacific 23,176 23% 26,233 21%
Africa/Europe 49,802 49% 53,310 43%
------------- ------ --- ------ ---
Total vessel revenues $101,313 100% 125,120 100%
===================== ======== === ======= ===
Vessel operating costs:
Crew costs $37,149 37% 43,384 35%
Repair and maintenance 7,709 7% 13,214 10%
Insurance and loss reserves 2,946 3% 2,142 2%
Fuel, lube and supplies 9,400 9% 7,782 6%
Other 10,997 11% 15,836 13%
----- ------ --- ------ ---
Total vessel operating costs 68,201 67% 82,358 66%
Vessel operating margin (H) $33,112 33% 42,762 34%
========================== ======= === ====== ===
Successor Predecessor
--------- -----------
Period from Period from
August 1, 2017 April 1, 2017 Nine Months
through through Ended
December 31, 2017 July 31, 2017 December 31, 2016
----------------- ------------- -----------------
(In thousands) % % %
------------- --- --- ---
Vessel revenues:
Americas $45,784 27% 40,848 28% 159,310 37%
Middle East/Asia Pacific 39,845 23% 36,313 25% 87,940 21%
Africa/Europe 86,255 50% 69,436 47% 179,661 42%
------------- ------ --- ------ --- ------- ---
Total vessel revenues $171,884 100% 146,597 100% 426,911 100%
===================== ======== === ======= === ======= ===
Vessel operating costs:
Crew costs $64,854 38% 56,653 39% 148,642 35%
Repair and maintenance 14,082 8% 23,040 16% 43,183 10%
Insurance and loss reserves 4,625 3% 3,949 3% 11,775 2%
Fuel, lube and supplies 16,390 9% 12,279 8% 28,730 7%
Other 20,551 12% 20,517 14% 45,996 11%
----- ------ --- ------ --- ------ ---
Total vessel operating costs 120,502 70% 116,438 80% 278,326 65%
Vessel operating margin (H) $51,382 30% 30,159 20% 148,585 35%
========================== ======= === ====== === ======= ===
Note (H): Vessel operating margin equals vessel revenues less vessel operating costs and excludes general and administrative expenses, vessel operating leases and depreciation and amortization expenses. The following tables reconcile vessel operating margin as presented above to vessel operating profit (loss):
Successor Predecessor
--------- -----------
Three Months Three Months
Ended Ended
(In thousands) December 31, 2017 December 31, 2016
------------- ----------------- -----------------
Vessel operating margin $33,112 42,762
General and administrative expenses - vessel operations (19,946) (20,608)
Vessel operating leases (91) (8,441)
Depreciation and amortization - vessel operations (11,681) (39,882)
------------------------------------------------- ------- -------
Vessel operating profit (loss) $1,394 (26,169)
============================= ====== =======
Successor Predecessor
--------- -----------
Period from Period from
August 1, 2017 April 1, 2017 Nine Months
through through Ended
(In thousands) December 31, 2017 July 31, 2017 December 31, 2016
------------- ----------------- ------------- -----------------
Vessel operating margin $51,382 30,159 148,585
General and administrative expenses - vessel operations (31,160) (23,881) (68,861)
Vessel operating leases (1,215) (6,165) (25,323)
Depreciation and amortization - vessel operations (19,344) (45,604) (124,232)
------------------------------------------------- ------- ------- --------
Vessel operating profit (loss) $(337) (45,491) (69,831)
============================= ===== ======= =======
The company's other operating profit (loss) consists of the following:
Successor Predecessor
--------- -----------
Three Months Three Months
Ended Ended
(In thousands) December 31, 2017 December 31, 2016
------------- ----------------- -----------------
Other operating revenues $3,140 4,095
Costs of other marine revenues (1,519) (2,714)
General and administrative expenses - other operating activities (401) (410)
Depreciation and amortization - other operating activities (415) (855)
---------------------------------------------------------- ---- ----
Other operating profit $805 116
====================== ==== ===
Successor Predecessor
--------- -----------
Period from Period from
August 1, 2017 April 1, 2017 Nine Months
through through Ended
(In thousands) December 31, 2017 July 31, 2017 December 31, 2016
------------- ----------------- ------------- -----------------
Other operating revenues $6,869 4,772 13,951
Costs of other marine revenues (3,792) (2,348) (10,040)
General and administrative expenses - other operating activities (636) (409) (1,659)
Depreciation and amortization - other operating activities (827) (1,139) (3,575)
---------------------------------------------------------- ---- ------ ------
Other operating profit (loss) $1,614 876 (1,323)
============================ ====== === ======
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
--------- -----------
Three Months Three Months
Ended Ended
December 31, 2017 December 31, 2016
----------------- -----------------
(In thousands) % %
------------- --- ---
Vessel operating profit (loss):
Americas $1,052 1% (6,242) (5%)
Middle East/Asia Pacific (493) (<1%) (8,368) (6%)
Africa/Europe 835 <1% (11,559) (9%)
------------- --- --- ------- ---
1,394 1% (26,169) (20%)
Other operating profit (loss) 805 1% 116 (<1%)
---------------------------- --- --- --- ----
2,199 2% (26,053) (20%)
Corporate general and administrative expenses (I) (10,026) (10%) (13,133) (10%)
Corporate depreciation (99) (<1%) (565) (1%)
---------------------- --- ---- ---- ---
Corporate expenses (10,125) (10%) (13,698) (11%)
Gain on asset dispositions, net 6,612 6% 6,139 5%
Asset impairments (16,777) (15%) (253,422) (196%)
----------------- ------- ---- -------- -----
Operating loss $(18,091) (17%) (287,034) (222%)
-------------- -------- ---- -------- -----
Foreign exchange gain (loss) (349) (<1%) 2,970 2%
Equity in net earnings of unconsolidated companies 825 <1% 1,557 1%
Interest income and other, net 1,898 2% 1,437 1%
Reorganization items (J) (2,419) (2%) - -
Interest and other debt costs (7,769) (8%) (18,587) (14%)
----------------------------- ------ --- ------- ----
Loss before income taxes $(25,905) (25%) (299,657) (232%)
======================== ======== ==== ======== =====
Note (I): Restructuring-related professional services costs included in general and administrative expenses for the three months ended December 31, 2016 (Predecessor), were $5.2 million.
Note (J): Reorganization items for the three months ended December 31, 2017 (Successor) included $2.0 million of restructuring-related professional services and sale leaseback redelivery costs of $0.4 million.
Successor Predecessor
--------- -----------
Period from Period from
August 1, 2017 April 1, 2017 Nine Months
through through Ended
December 31, 2017 July 31, 2017 December 31, 2016
----------------- ------------- -----------------
(In thousands) % % %
------------- --- --- ---
Vessel operating profit (loss):
Americas $(1,599) (1%) (22,549) (15%) (11,745) (3%)
Middle East/Asia Pacific 451 <1% (1,434) (1%) (19,146) (4%)
Africa/Europe 811 1% (21,508) (14%) (38,940) (9%)
------------- --- --- ------- ---- ------- ---
(337) (<1%) (45,491) (30%) (69,831) (16%)
Other operating profit (loss) 1,614 1% 876 1% (1,323) (<1%)
---------------------------- ----- --- --- --- ------ ----
1,277 1% (44,615) (29%) (71,154) (16%)
Corporate general and administrative (14,823) (8%) (17,542) (12%) (33,632) (8%)
expenses (K)
Corporate depreciation (166) (<1%) (704) (<1%) (1,892) (<1%)
---------------------- ---- ---- ---- ---- ------ ----
Corporate expenses (14,989) (8%) (18,246) (12%) (35,524) (8%)
Gain on asset dispositions, net 6,616 3% 3,561 2% 18,035 4%
Asset impairments (16,777) (9%) (184,748) (122%) (419,870) (95%)
----------------- ------- --- -------- ----- -------- ----
Operating loss $(23,873) (13%) (244,048) (161%) (508,513) (115%)
-------------- -------- ---- -------- ----- -------- -----
Foreign exchange loss (407) (<1%) (3,181) (2%) (2,302) (1%)
Equity in net earnings of unconsolidated 2,130 1% 4,786 3% 2,869 <1%
companies
Interest income and other, net 2,771 1% 2,384 2% 3,605 1%
Reorganization items (L) (4,299) (3%) (1,396,905) (923%) - -
Interest and other debt costs (13,009) (7%) (11,179) (8%) (54,018) (12%)
----------------------------- ------- --- ------- --- ------- ----
Loss before income taxes $(36,687) (21%) (1,648,143) (1089%) (558,359) (127%)
======================== ======== ==== ========== ====== ======== =====
Note (K): Restructuring-related professional services costs for the five month period from August 1, 2017 through December 31, 2017 (Successor) are included in reorganization items. Restructuring-related professional services costs included in general and administrative expenses for the four month period from April 1, 2017 through July 31, 2017 (Predecessor), and for the nine months ended December 31, 2016 (Predecessor), were $6.7 million and $12.2 million, respectively.
Note (L): Reorganization items for the five month period from August 1, 2017 through December 31, 2017 (Successor) of $4.3 million include (i) $1.6 million related to re-delivery of sale leaseback vessels to their respective owners and (ii) $2.7 million of restructuring-related professional services costs.
Reorganization items for the four month 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) restructuring-related professional services costs 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.
For the following tables for illustrative purposes, the company has combined the Successor and Predecessor results to derive combined results for the three months ended September 30, 2017. The combination was generated by addition of comparable financial statement line items. However, because of various adjustments to the consolidated financial statements in connection with the application of fresh-start reporting, including asset valuation adjustments and liability adjustments, the results of operations for the Successor may not be comparable to those of the Predecessor.
TIDEWATER INC.
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) - QUARTERLY DATA
(Unaudited)
(In thousands, except share and per share data)
Three Months Ended
------------------
December 31, September 30, June 30, March 31, December 31,
2017 2017 2017 2017 2016
---- ---- ---- ---- ----
Revenues:
Vessel revenues $ 101,313 104,911 112,257 156,905 125,120
Other operating revenues 3,140 5,652 2,849 3,844 4,095
------------------------ ----- ----- ----- ----- -----
104,453 110,563 115,106 160,749 129,215
------- ------- ------- ------- -------
Costs and expenses:
Vessel operating costs 68,201 84,966 83,773 80,845 82,358
Costs of other operating revenues 1,519 3,036 1,585 2,689 2,714
General and administrative (M) 30,373 25,019 33,059 41,727 34,151
Vessel operating leases 91 1,747 5,542 8,443 8,441
Depreciation and amortization 12,195 19,302 36,287 37,592 41,302
Gain on asset dispositions, net (6,612) (376) (3,189) (6,064) (6,139)
Asset impairments 16,777 21,325 163,423 64,857 253,422
----------------- ------ ------ ------- ------ -------
122,544 155,019 320,480 230,089 416,249
------- ------- ------- ------- -------
Operating loss (18,091) (44,456) (205,374) (69,340) (287,034)
Other income (expenses):
Foreign exchange gain (loss) (349) (2,082) (1,157) 664 2,970
Equity in net earnings of unconsolidated 825 1,574 4,517 2,841 1,557
companies
Interest income and other 1,898 1,577 1,680 1,588 1,437
Reorganization items (M) (2,419) (1,085,609) (313,176) - -
Interest and other debt costs (7,769) (5,814) (10,605) (21,008) (18,587)
----------------------------- ------ ------ ------- ------- -------
(7,814) (1,090,354) (318,741) (15,915) (12,623)
------ ---------- -------- ------- -------
Loss before income taxes (25,905) (1,134,810) (524,115) (85,255) (299,657)
Income tax (benefit) expense (2,706) 3,216 295 1,717 (2,884)
---------------------------- ------ ----- --- ----- ------
Net loss $ (23,199) (1,138,026) (524,410) (86,972) (296,773)
Less: Net income (loss) attributable to 374 142 24 7,883 903
noncontrolling interests
------------------------
Net loss attributable to Tidewater Inc. $ (23,573) (1,138,168) (524,434) (94,855) (297,676)
--------------------------------------- --- ------- ---------- -------- ------- --------
Basic loss per common share $ (1.02) - - - -
=========================== === ===== === === === ===
Diluted loss per common share $ (1.02) - - - -
============================= === ===== === === === ===
Weighted average common shares outstanding (N) 23,137,909 - - - -
Dilutive effect of stock options and restricted stock - - - - -
----------------------------------------------------- --- --- --- --- ---
Adjusted weighted average common shares 23,137,909 - - - -
======================================= ========== === === === ===
Vessel operating margin $ 33,112 19,945 28,484 76,060 42,762
----------------------- --- ------ ------ ------ ------ ------
Note (M): Restructuring-related items:
Restructuring-related professional services $ - - 6,709 16,805 5,188
costs included in general and administrative
expenses
Restructuring-related professional services 2,031 23,494 5,165 - -
costs included in reorganization items
Restructuring-related sale leaseback vessel 388 1,244 - - -
redelivery costs included in reorganization
items
-----
Total $ 2,419 24,738 11,874 16,805 5,188
===== === ===== ====== ====== ====== =====
Note (N): Weighted average shares outstanding include 924,125 shares issuable upon the exercise of Jones Act-related New Creditor Warrants held by U.S. citizens. Common shares and New Creditor Warrants and the sum of common shares and New Creditor Warrants outstanding at December 31, 2017 were 22,115,916, 7,884,006 and 29,999,922, respectively.
TIDEWATER INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
December 31, September 30, June 30, March 31, December 31,
ASSETS 2017 2017 2017 2017 2016
------ ---- ---- ---- ---- ----
Current assets:
Cash and cash equivalents $ 432,035 459,978 683,778 706,404 649,804
Restricted Cash 21,300 - - - -
Trade and other receivables, net 114,184 120,271 116,612 123,262 174,335
Due from affiliate 230,315 245,056 252,810 262,652 287,592
Marine operating supplies 28,220 31,083 31,097 30,560 30,720
Other current assets 19,130 14,813 34,619 18,409 22,053
-------------------- ------ ------ ------ ------ ------
Total current assets 845,184 871,201 1,118,916 1,141,287 1,164,504
-------------------- ------- ------- --------- --------- ---------
Investments in, at equity, and advances to 29,216 25,729 49,216 45,115 42,516
unconsolidated companies
Net properties and equipment 837,520 868,689 2,659,314 2,864,762 3,009,407
Deferred drydocking and survey costs 3,208 388 - - -
Other assets 31,052 46,845 92,134 139,535 98,772
------------ ------ ------ ------ ------- ------
Total assets $ 1,746,180 1,812,852 3,919,580 4,190,699 4,315,199
============ === ========= ========= ========= ========= =========
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 38,497 39,439 35,087 31,599 50,754
Accrued expenses 54,806 61,115 63,155 78,121 67,412
Due to affiliate 99,448 112,642 121,037 132,857 132,836
Accrued property and liability losses 2,585 2,774 2,758 3,583 3,574
Current portion of long-term debt 5,103 5,174 10,106 2,034,124 2,036,060
Other current liabilities 19,693 38,041 28,029 48,429 50,274
------------------------- ------ ------ ------ ------ ------
Total current liabilities 220,132 259,185 260,172 2,328,713 2,340,910
------------------------- ------- ------- ------- --------- ---------
Long-term debt 443,057 445,677 80,863 - -
Deferred income taxes - - - 46,013 56,375
Accrued property and liability losses 2,471 2,607 2,776 10,209 11,113
Other liabilities and deferred credits 58,576 62,569 60,382 154,705 159,237
Liabilities subject to compromise - - 2,389,557 - -
Commitments and Contingencies
Equity:
Common stock 22 21 4,712 4,712 4,707
Additional paid-in capital 1,059,120 1,056,563 165,516 165,221 171,018
Retained earnings (39,266) (15,693) 950,895 1,475,329 1,570,027
Accumulated other comprehensive loss (147) 82 (10,258) (10,344) (6,446)
------------------------------------ ---- --- ------- ------- ------
Total stockholders' equity 1,019,729 1,040,973 1,110,865 1,634,918 1,739,306
Noncontrolling interests 2,215 1,841 14,965 16,141 8,258
------------------------ ----- ----- ------ ------ -----
Total equity 1,021,944 1,042,814 1,125,830 1,651,059 1,747,564
Total liabilities and equity $ 1,746,180 1,812,852 3,919,580 4,190,699 4,315,199
============================ === ========= ========= ========= ========= =========
Due from affiliate, net of due to affiliate $ 130,867 132,414 131,773 129,795 154,756
=========================================== === ======= ======= ======= ======= =======
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
Three Months Ended
------------------
December 31, September 30, June 30, March 31, December 31,
2017 2017 2017 2017 2016
---- ---- ---- ---- ----
REVENUE BY VESSEL CLASS
(In thousands):
---------------
Americas fleet:
---------------
Deepwater (O) $ 17,062 14,102 17,313 62,831 30,846
Towing-supply 8,263 9,319 11,274 14,738 11,905
Other 3,010 2,989 3,300 2,964 2,826
----- ----- ----- ----- ----- -----
Total (O) $ 28,335 26,410 31,887 80,533 45,577
Middle East/Asia Pacific fleet:
-------------------------------
Deepwater $ 9,066 8,393 10,701 9,433 8,605
Towing-supply 14,110 16,823 17,065 17,245 17,628
Other - - - - -
----- --- --- --- --- ---
Total $ 23,176 25,216 27,766 26,678 26,233
Africa/Europe fleet:
--------------------
Deepwater $ 24,753 25,170 22,158 23,032 21,748
Towing-supply 20,448 23,173 27,019 22,794 26,087
Other 4,601 4,942 3,427 3,868 5,475
----- ----- ----- ----- ----- -----
Total $ 49,802 53,285 52,604 49,694 53,310
Worldwide fleet:
----------------
Deepwater (O) $ 50,881 47,665 50,172 95,296 61,199
Towing-supply 42,821 49,315 55,358 54,777 55,620
Other 7,611 7,931 6,727 6,832 8,301
----- ----- ----- ----- ----- -----
Total (O) $ 101,313 104,911 112,257 156,905 125,120
======== === ======= ======= ======= ======= =======
Note (O): 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
Three Months Ended
------------------
December 31, September 30, June 30, March 31, December 31,
2017 2017 2017 2017 2016
---- ---- ---- ---- ----
AVERAGE NUMBER OF VESSELS:
--------------------------
Americas fleet:
---------------
Deepwater 31 39 41 41 41
Towing-supply 16 19 21 22 22
Other 6 8 8 8 8
----- --- --- --- --- ---
Total 53 66 70 71 71
Stacked vessels (27) (39) (35) (34) (35)
--------------- --- --- --- --- ---
Active vessels 26 27 35 37 36
-------------- --- --- --- --- ---
Middle East/Asia Pacific fleet:
-------------------------------
Deepwater 21 21 22 23 22
Towing-supply 39 43 44 44 46
Other - 1 1 1 1
----- --- --- --- --- ---
Total 60 65 67 68 69
Stacked vessels (20) (25) (25) (24) (30)
--------------- --- --- --- --- ---
Active vessels 40 40 42 44 39
-------------- --- --- --- --- ---
Africa/Europe fleet:
--------------------
Deepwater 44 43 41 41 42
Towing-supply 41 44 44 43 43
Other 31 33 37 38 38
----- --- --- --- --- ---
Total 116 120 122 122 123
Stacked vessels (42) (42) (49) (54) (50)
--------------- --- --- --- --- ---
Active vessels 74 78 73 68 73
-------------- --- --- --- --- ---
Worldwide fleet:
----------------
Deepwater 96 103 104 105 105
Towing-supply 96 106 109 109 111
Other 37 42 46 47 47
----- --- --- --- --- ---
Total 229 251 259 261 263
Stacked vessels (89) (106) (109) (112) (115)
--------------- --- ---- ---- ---- ----
Active vessels 140 145 150 149 148
============== === === === === ===
Total active 140 145 150 149 148
Total stacked 89 106 109 112 115
Total joint venture and other vessels 8 8 8 8 8
------------------------------------- --- --- --- --- ---
Total 237 259 267 269 271
===== === === === === ===
AVERAGE NUMBER OF LEASED VESSELS
INCLUDED IN VESSEL COUNTS ABOVE:
--------------------------------
Americas fleet:
---------------
Deepwater - 7 8 8 8
Towing-supply - 3 3 3 3
------------- --- --- --- --- ---
Total - 10 11 11 11
Stacked vessels - (7) (7) (7) (6)
--------------- --- --- --- --- ---
Active vessels - 3 4 4 5
-------------- --- --- --- --- ---
Africa/Europe fleet:
--------------------
Towing-supply - 5 5 5 5
------------- --- --- --- --- ---
Total - 5 5 5 5
Stacked vessels - - - (1) (1)
--------------- --- --- --- --- ---
Active vessels - 5 5 4 4
-------------- --- --- --- --- ---
Worldwide fleet:
----------------
Deepwater - 7 8 8 8
Towing-supply - 8 8 8 8
------------- --- --- --- --- ---
Total - 15 16 16 16
Stacked vessels - (7) (7) (8) (7)
--------------- --- --- --- --- ---
Active vessels - 8 9 8 9
============== === === === === ===
Note (P): Included in total owned or chartered vessels at December 31, 2017 (Successor), September 30, 2017 (Successor), June 30, 2017 (Predecessor), March 31, 2017 (Predecessor) and December 31, 2016 (Predecessor), were 89, 91, 115, 111, and 116 vessels, respectively, that were stacked by the company. These vessels were considered to be in service and are included in the calculation of our total fleet utilization statistics.
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
Three Months Ended
------------------
December 31, September 30, June 30, March 31, December 31,
2017 2017 2017 2017 2016
---- ---- ---- ---- ----
AVAILABLE DAYS - TOTAL FLEET:
-----------------------------
Americas fleet:
---------------
Deepwater 2,893 3,545 3,731 3,690 3,812
Towing-supply 1,441 1,773 1,941 1,980 2,012
Other 574 736 728 720 736
----- --- --- --- --- ---
Total 4,908 6,054 6,400 6,390 6,560
Middle East/Asia Pacific fleet:
-------------------------------
Deepwater 1,908 1,932 2,001 2,070 2,068
Towing-supply 3,604 3,980 3,974 3,952 4,232
Other 3 92 91 90 92
----- --- --- --- --- ---
Total 5,515 6,004 6,066 6,112 6,392
Africa/Europe fleet:
--------------------
Deepwater 4,072 3,996 3,732 3,650 3,822
Towing-supply 3,719 4,045 4,004 3,886 3,956
Other 2,852 3,021 3,352 3,420 3,496
----- ----- ----- ----- ----- -----
Total 10,643 11,062 11,088 10,956 11,274
Worldwide fleet:
----------------
Deepwater 8,873 9,473 9,464 9,410 9,702
Towing-supply 8,764 9,798 9,919 9,818 10,200
Other 3,429 3,849 4,171 4,230 4,324
----- ----- ----- ----- ----- -----
Total 21,066 23,120 23,554 23,458 24,226
===== ====== ====== ====== ====== ======
Three Months Ended
------------------
December 31, September 30, June 30, March 31, December 31,
2017 2017 2017 2017 2016
---- ---- ---- ---- ----
OUT-OF-SERVICE - STACKED DAYS:
------------------------------
Americas fleet:
---------------
Deepwater 1,565 2,359 2,110 1,874 1,990
Towing-supply 705 889 849 900 969
Other 206 368 273 270 276
----- --- --- --- --- ---
Total 2,476 3,616 3,232 3,044 3,235
Middle East/Asia Pacific fleet:
-------------------------------
Deepwater 705 746 702 900 1,179
Towing-supply 1,089 1,435 1,446 1,240 1,455
Other 3 92 91 90 92
----- --- --- --- --- ---
Total 1,797 2,273 2,239 2,230 2,726
Africa/Europe fleet:
--------------------
Deepwater 947 920 1,047 1,310 1,507
Towing-supply 1,652 1,576 1,554 1,637 1,507
Other 1,295 1,382 1,896 1,887 1,620
----- ----- ----- ----- ----- -----
Total 3,894 3,878 4,497 4,834 4,634
Worldwide fleet:
----------------
Deepwater 3,217 4,025 3,859 4,084 4,676
Towing-supply 3,446 3,900 3,849 3,777 3,931
Other 1,504 1,842 2,260 2,247 1,988
----- ----- ----- ----- ----- -----
Total 8,167 9,767 9,968 10,108 10,595
===== ===== ===== ===== ====== ======
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
Three Months Ended
------------------
December 31, September 30, June 30, March 31, December 31,
2017 2017 2017 2017 2016
---- ---- ---- ---- ----
AVAILABLE DAYS - ACTIVE FLEET:
------------------------------
Americas fleet:
---------------
Deepwater 1,328 1,186 1,621 1,816 1,822
Towing-supply 736 884 1,092 1,080 1,043
Other 368 368 455 450 460
----- --- --- --- --- ---
Total 2,432 2,438 3,168 3,346 3,325
Middle East/Asia Pacific fleet:
-------------------------------
Deepwater 1,203 1,186 1,299 1,170 889
Towing-supply 2,515 2,545 2,528 2,712 2,777
Other - - - - -
----- --- --- --- --- ---
Total 3,718 3,731 3,827 3,882 3,666
Africa/Europe fleet:
--------------------
Deepwater 3,125 3,076 2,685 2,340 2,315
Towing-supply 2,067 2,469 2,450 2,249 2,449
Other 1,557 1,639 1,456 1,533 1,876
----- ----- ----- ----- ----- -----
Total 6,749 7,184 6,591 6,122 6,640
Worldwide fleet:
----------------
Deepwater 5,656 5,448 5,605 5,326 5,026
Towing-supply 5,318 5,898 6,070 6,041 6,269
Other 1,925 2,007 1,911 1,983 2,336
----- ----- ----- ----- ----- -----
Total 12,899 13,353 13,586 13,350 13,631
===== ====== ====== ====== ====== ======
Note (Q): Available Days - Active Fleet equals Available Days - Total Fleet less Out-Of-Service - Stacked Days.
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
Three Months Ended
------------------
December 31, September 30, June 30, March 31, December 31,
2017 2017 2017 2017 2016
---- ---- ---- ---- ----
UTILIZATION - TOTAL FLEET:
--------------------------
Americas fleet:
---------------
Deepwater 32.2% 20.5% 23.4% 29.7% 32.1%
Towing-supply 39.0 36.1 36.4 41.8 36.4
Other 60.8 45.3 50.0 45.7 37.0
----- ---- ---- ---- ---- ----
Total 37.6% 28.1% 30.3% 35.2% 34.0%
Middle East/Asia Pacific fleet:
-------------------------------
Deepwater 48.7% 44.0% 54.4% 45.9% 35.9%
Towing-supply 57.7 57.1 57.2 54.2 52.9
Other - - - - -
----- --- --- --- --- ---
Total 54.5% 52.0% 55.4% 50.6% 46.7%
Africa/Europe fleet:
--------------------
Deepwater 57.2% 58.6% 51.7% 53.6% 42.9%
Towing-supply 43.5 46.4 51.7 42.1 47.4
Other 44.8 42.6 31.3 31.0 37.6
----- ---- ---- ---- ---- ----
Total 49.1% 49.7% 45.6% 42.5% 42.8%
Worldwide fleet:
----------------
Deepwater 47.2% 41.3% 41.1% 42.6% 37.2%
Towing-supply 48.6 48.9 50.9 46.9 47.5
Other 47.4 42.1 33.9 32.8 36.7
----- ---- ---- ---- ---- ----
Total 47.8% 44.7% 44.0% 42.6% 41.4%
===== ==== ==== ==== ==== ====
Note (R): Utilization Total Fleet equals Days Worked / Available Days Total Fleet.
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
Three Months Ended
------------------
December 31, September 30, June 30, March 31, December 31,
2017 2017 2017 2017 2016
---- ---- ---- ---- ----
UTILIZATION - ACTIVE FLEET:
---------------------------
Americas fleet:
---------------
Deepwater 70.2% 61.2% 53.8% 60.4% 67.2%
Towing-supply 76.4 72.3 64.7 76.6 70.3
Other 94.8 90.6 79.9 73.1% 59.2
----- ---- ---- ---- ---- ----
Total 75.8% 69.7% 61.3% 67.3% 67.1%
Middle East/Asia Pacific fleet:
-------------------------------
Deepwater 77.2% 71.6% 83.8% 81.2% 83.6%
Towing-supply 82.7 89.4 89.9 79.0 80.6
Other - - - - -
----- --- --- --- --- ---
Total 80.9% 83.7% 87.8 79.7% 81.4%
Africa/Europe fleet:
--------------------
Deepwater 74.5% 76.1% 71.9% 83.7% 70.8%
Towing-supply 78.2 76.0 84.6 72.7 76.6
Other 82.0 78.4 72.1 69.1 70.0
----- ---- ---- ---- ---- ----
Total 77.4% 76.6% 76.6% 76.0% 72.7%
Worldwide fleet:
----------------
Deepwater 74.1% 71.9% 69.4% 75.2% 71.8%
Towing-supply 80.1 81.2 83.2 76.2 77.3
Other 84.5 80.6 74.0 70.0 67.9
----- ---- ---- ---- ---- ----
Total 78.1% 77.3% 76.2% 74.9% 73.7%
===== ==== ==== ==== ==== ====
Note (S): Utilization Active Fleet equals Days Worked / Available Days - Active Fleet.
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
Three Months Ended
------------------
December 31, September 30, June 30, March 31, December 31,
2017 2017 2017 2017 2016
---- ---- ---- ---- ----
AVERAGE VESSEL DAY RATES:
-------------------------
Americas fleet:
---------------
Deepwater (T) $ 18,301 19,429 19,869 57,311 25,181
Towing-supply 14,700 14,577 15,959 17,816 16,239
Other 8,628 8,968 9,071 9,015 10,384
----- ----- ----- ----- ----- ------
Total (T) $ 15,372 15,550 16,423 35,756 20,436
Middle East/Asia Pacific fleet:
-------------------------------
Deepwater $ 9,762 9,883 9,825 9,927 11,576
Towing-supply 6,787 7,398 7,511 8,045 7,872
Other - - - - -
----- --- --- --- --- ---
Total $ 7,705 8,073 8,261 8,623 8,795
Africa/Europe fleet:
--------------------
Deepwater $ 10,625 10,753 11,482 11,763 13,262
Towing-supply 12,644 12,348 13,040 13,940 13,917
Other 3,602 3,854 3,265 3,652 4,169
----- ----- ----- ----- ----- -----
Total $ 9,533 9,685 10,413 10,682 11,042
Worldwide fleet:
----------------
Deepwater (T) $ 12,142 12,172 12,897 23,797 16,961
Towing-supply 10,056 10,295 10,961 11,893 11,476
Other 4,681 4,906 4,759 4,922 5,235
----- ----- ----- ----- ----- -----
Total (T) $ 10,056 10,162 10,842 15,693 12,461
======== === ====== ====== ====== ====== ======
Note (T): 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
Three Months Ended
------------------
December 31, September 30, June 30, March 31, December 31,
(In thousands) 2017 2017 2017 2017 2016
------------- ---- ---- ---- ---- ----
Americas
--------
Vessel revenues (U) $ 28,335 26,410 31,887 80,533 45,577
Vessel operating costs:
Crew costs $ 11,190 12,652 14,457 15,761 16,416
Routine repairs and maintenance 2,203 2,210 2,705 2,879 3,017
Major repairs (144) 4,167 1,136 7 1,435
Insurance and loss reserves 788 605 933 (519) 664
Fuel, lube and supplies 2,413 2,935 3,394 3,896 2,382
Other 1,321 2,307 4,655 3,555 3,216
----- ----- ----- ----- ----- -----
Total vessel operating costs $ 17,771 24,876 27,280 25,579 27,130
Vessel operating margin ($) $ 10,564 1,534 4,607 54,954 18,447
Vessel operating margin (%) 37.3% 5.8% 14.4% 68.2% 40.5%
Vessel operating lease expense $ - 62 3,787 6,627 6,626
Vessel depreciation $ 3,386 5,488 10,748 11,297 12,039
Amortization of deferred drydocking and survey $ 86 4 - - -
costs
Vessel operations general and administrative $ 6,040 5,481 5,771 6,412 6,024
expenses
--------
Vessel operating profit (loss) $ 1,052 (9,501) (15,699) 30,618 (6,242)
============================= === ===== ====== ======= ====== ======
Americas - Select operating statistics
--------------------------------------
Average vessels - Total fleet (V) 53 66 70 71 71
Utilization - Total fleet 37.6% 28.1% 30.3% 35.2% 34.0%
Average vessels - Active fleet (V) 26 27 35 37 36
Utilization - Active fleet 75.8% 69.7% 61.3% 67.3% 67.1%
Average day rates (U) $ 15,372 15,550 16,423 35,756 20,436
Vessels commencing drydocks 3 7 2 2 2
Major repairs expense and deferred
drydocking and survey costs:
Major repairs expense $ (144) 4,167 1,136 7 1,435
Cash paid for deferred $ 554 243 - - -
drydocking and survey costs
$ 410 4,410 1,136 7 1,435
Deferred drydocking and survey costs - $ 239 - - - -
beginning balance
Cash paid for deferred drydocking and $ 554 243 - - -
survey costs
Amortization of deferred drydocking and $ 86 4 - - -
survey costs
Deferred drydocking and survey costs - $ 707 239 - - -
ending balance
Note (U): Included in Americas vessel revenue for the quarter ended March 31, 2017 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.
Note (V): Average leased vessels - Total fleet - 10 11 11 11
Average leased vessels - Active fleet - 3 4 4 5
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
Three Months Ended
------------------
December 31, September 30, June 30, March 31, December 31,
(In thousands) 2017 2017 2017 2017 2016
------------- ---- ---- ---- ---- ----
Middle East/Asia Pacific
------------------------
Vessel revenues $ 23,176 25,216 27,766 26,678 26,233
Vessel operating costs:
Crew costs $ 8,666 9,101 9,795 9,495 9,264
Routine repairs and maintenance 1,733 2,387 2,164 2,318 1,801
Major repairs 442 320 511 3,988 1,631
Insurance and loss reserves 771 626 681 (732) 659
Fuel, lube and supplies 2,653 1,725 1,539 2,543 1,568
Other 2,723 2,977 2,908 3,351 3,963
----- ----- ----- ----- ----- -----
Total vessel operating costs $ 16,988 17,136 17,598 20,963 18,886
Vessel operating margin ($) $ 6,188 8,080 10,168 5,715 7,347
Vessel operating margin (%) 26.7% 32.0% 36.6% 21.4% 28.0%
Vessel operating lease expense $ - - - - -
Vessel depreciation $ 2,905 4,028 7,746 8,499 10,677
Amortization of deferred drydocking and survey $ 4 - - - -
costs
Vessel operations general and administrative $ 3,772 3,226 3,738 3,380 5,038
expenses
--------
Vessel operating profit (loss) $ (493) 826 (1,316) (6,164) (8,368)
============================= === ==== === ====== ====== ======
Middle East/Asia Pacific - Select operating
statistics
----------
Average vessels - Total fleet 60 65 67 68 69
Utilization - Total fleet 54.5% 52.0% 55.4% 50.6% 46.7%
Average vessels - Active fleet 40 40 42 44 39
Utilization - Active fleet 80.9% 83.7% 87.8% 79.7% 81.4%
Average day rates $ 7,705 8,073 8,261 8,623 8,795
Vessels commencing drydocks 5 1 1 5 3
Major repairs expense and deferred
drydocking and survey costs:
Major repairs expense $ 442 320 511 3,988 1,631
Cash paid for deferred $ 209 - - - -
drydocking and survey costs
$ 651 320 511 3,988 1,631
Deferred drydocking and survey costs - $ - - - - -
beginning balance
Cash paid for deferred drydocking and $ 209 - - - -
survey costs
Amortization of deferred drydocking and $ 4 - - - -
survey costs
Deferred drydocking and survey costs - $ 205 - - - -
ending balance
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
Three Months Ended
------------------
December 31, September 30, June 30, March 31, December 31,
(In thousands) 2017 2017 2017 2017 2016
------------- ---- ---- ---- ---- ----
Africa/Europe
-------------
Vessel revenues $ 49,802 53,285 52,604 49,694 53,310
Vessel operating costs:
Crew costs $ 17,292 20,395 17,958 16,573 17,704
Routine repairs and maintenance 3,391 3,674 3,338 3,324 3,384
Major repairs 85 2,811 3,990 4,558 1,946
Insurance and loss reserves 1,387 1,273 1,510 (516) 819
Fuel, lube and supplies 4,334 5,181 4,495 2,840 3,832
Other 6,953 9,620 7,604 7,524 8,657
----- ----- ----- ----- ----- -----
Total vessel operating costs $ 33,442 42,954 38,895 34,303 36,342
Vessel operating margin ($) $ 16,360 10,331 13,709 15,391 16,968
Vessel operating margin (%) 32.9% 19.4% 26.1% 31.0% 31.8%
Vessel operating lease expense $ 91 1,685 1,755 1,816 1,815
Vessel depreciation $ 5,188 8,855 16,398 16,377 17,166
Amortization of deferred drydocking and survey $ 112 - - - -
costs
Vessel operations general and administrative $ 10,134 8,386 8,493 9,653 9,546
expenses
--------
Vessel operating loss $ 835 (8,595) (12,937) (12,455) (11,559)
===================== === === ====== ======= ======= =======
Africa/Europe - Select operating statistics
-------------------------------------------
Average vessels - Total fleet (W) 116 120 122 122 123
Utilization - Total fleet 49.1% 49.7% 45.6% 42.5% 42.8%
Average vessels - Active fleet (W) 74 78 73 68 73
Utilization - Active fleet 77.4% 76.6% 76.6% 76.0% 72.7%
Average day rates $ 9,533 9,685 10,413 10,682 11,042
Vessels commencing drydocks 2 8 6 7 4
Major repairs expense and deferred
drydocking and survey costs:
Major repairs expense $ 85 2,811 3,990 4,558 1,946
Cash paid for deferred $ 2,259 149 - - -
drydocking and survey costs
$ 2,344 2,960 3,990 4,558 1,946
Deferred drydocking and survey costs - $ 149 - - - -
beginning balance
Cash paid for deferred drydocking and $ 2,259 149 - - -
survey costs
Amortization of deferred drydocking and $ 112 - - - -
survey costs
Deferred drydocking and survey costs - $ 2,296 149 - - -
ending balance
Note (W): Average leased vessels - Total fleet - 5 5 5 5
Average leased vessels - Active fleet - 5 5 4 4
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
Three Months Ended
------------------
December 31, September 30, June 30, March 31, December 31,
(In thousands) 2017 2017 2017 2017 2016
------------- ---- ---- ---- ---- ----
Worldwide
---------
Vessel revenues (X) $ 101,313 104,911 112,257 156,905 125,120
Vessel operating costs:
Crew costs $ 37,148 42,148 42,210 41,829 43,384
Routine repairs and maintenance 7,327 8,271 8,207 8,521 8,202
Major repairs 383 7,298 5,637 8,553 5,012
Insurance and loss reserves 2,946 2,504 3,124 (1,767) 2,142
Fuel, lube and supplies 9,400 9,841 9,428 9,279 7,782
Other 10,997 14,904 15,167 14,430 15,836
----- ------ ------ ------ ------ ------
Total vessel operating costs $ 68,201 84,966 83,773 80,845 82,358
Vessel operating margin ($) $ 33,112 19,945 28,484 76,060 42,762
Vessel operating margin (%) 32.7% 19.0% 25.4% 48.5% 34.2%
Vessel operating lease expense $ 91 1,747 5,542 8,443 8,441
Vessel depreciation $ 11,479 18,371 34,892 36,173 39,882
Amortization of deferred drydocking and survey $ 202 4 - - -
costs
Vessel operations general and administrative $ 19,946 17,093 18,002 19,445 20,608
expenses
--------
Vessel operating profit (loss) $ 1,394 (17,270) (29,952) 11,999 (26,169)
============================= === ===== ======= ======= ====== =======
Worldwide - Select operating statistics
---------------------------------------
Average vessels - Total fleet (Y) 229 251 259 261 263
Utilization - Total fleet 47.8% 44.7% 44.0% 42.6% 41.4%
Average vessels - Active fleet (Y) 140 145 150 149 148
Utilization - Active fleet 78.1% 77.3% 76.2% 74.9% 73.7%
Average day rates (X) $ 10,056 10,162 10,842 15,693 12,461
Vessels commencing drydocks 10 16 9 14 9
Major repairs expense and deferred
drydocking and survey costs:
Major repairs expense $ 383 7,298 5,637 8,553 5,012
Cash paid for deferred $ 3,022 392 - - -
drydocking and survey costs
$ 3,405 7,690 5,637 8,553 5,012
Deferred drydocking and survey costs - $ 388 - - - -
beginning balance
Cash paid for deferred drydocking and $ 3,022 392 - - -
survey costs
Amortization of deferred drydocking and $ 202 4 - - -
survey costs
Deferred drydocking and survey costs - $ 3,208 388 - - -
ending balance
Note (X): Included in Worldwide vessel revenue for the quarter ended March 31, 2017 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.
Note (Y): Average leased vessels - Total fleet - 15 16 16 16
Average leased vessels - Active fleet - 8 9 8 9
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
Three Months Ended
------------------
December 31, September 30, June 30, March 31, December 31,
(In thousands) 2017 2017 2017 2017 2016
------------- ---- ---- ---- ---- ----
Consolidated EBITDA (Z) (AA) (AB) $ 13,255 (2,760) 6,085 55,007 18,842
Restructuring-related professional services costs (2,031) (23,494) (11,874) (16,805) (5,188)
Asset impairments (16,777) (21,325) (163,423) (64,857) (253,422)
Sale leaseback redelivery costs (388) (1,244) - - -
Reorganization items (excluding professional - (1,060,871) (308,011) - -
services and sale leaseback redelivery costs)
Interest and other debt costs (7,769) (5,814) (10,605) (21,008) (18,587)
Income tax benefit (expense) 2,706 (3,216) (295) (1,717) 2,884
Depreciation (11,993) (19,298) (36,287) (37,592) (41,302)
Amortization of deferred drydocking and survey (202) (4) - - -
costs
Net loss $ (23,199) (1,138,026) (524,410) (86,972) (296,773)
======== === ======= ========== ======== ======= ========
Three Months Ended
------------------
December 31, September 30, June 30, March 31, December 31,
(In thousands) 2017 2017 2017 2017 2016
------------- ---- ---- ---- ---- ----
Consolidated EBITDA (Z) (AA) (AB) $ 13,255 (2,760) 6,085 55,007 18,842
Restructuring-related professional service costs (2,031) (23,494) (11,874) (16,805) (5,188)
Sale leaseback redelivery costs (388) (1,244) - - -
Cash paid for interest (8,164) (1,203) (433) (8,218) (28,260)
Cash paid for taxes (3,262) (2,521) (3,611) (2,167) (7,959)
Cash paid for deferred drydocking costs (3,022) (392) - - -
Change in net working capital, excluding cash (4,874) 18,585 (9,856) 42,205 (13,247)
Equity in net (earnings) losses of unconsol. (825) (1,574) (4,101) (2,841) (1,557)
companies
Stock-based compensation expense 2,558 2,554 326 (888) 1,538
Gain on asset disposition (6,612) (376) (3,189) (6,064) (6,139)
Changes in other, net (4,372) (3,608) 3,706 9,921 2,243
Net cash provided (used) in operating activities $ (17,737) (16,033) (22,947) 70,150 (39,727)
================================================ === ======= ======= ======= ====== =======
Note (Z): Consolidated EBITDA excludes interest and other debt costs, income tax expense, depreciation and amortization, asset impairment charges, restructuring-related professional services costs and costs related to the redelivery of sale leaseback vessels. Restructuring-related professional services and sale leaseback redelivery costs have been separately presented in the above table. Restructuring-related professional services 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 (AA): Consolidated EBITDA for the three months ended December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017, and December 31, 2016 includes non-cash, stock-based compensation expense of $2,558, $2,554, $326, $(888), and $1,538, respectively.
Note (AB): Consolidated EBITDA for the three months ended December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017 and December 31, 2016 includes vessel operating lease expense of $91, $1,747, $5,542, $8,443, 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 included in general and administrative expenses. 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.
For illustrative purposes, the company has combined the Successor and Predecessor results to derive combined results for the three months ended September 30, 2017. The combination was generated by addition of comparable financial statement line items. However, because of various adjustments to the consolidated financial statements in connection with the application of fresh-start reporting, including asset valuation adjustments and liability adjustments, the results of operations for the Successor may not be comparable to those of the Predecessor.
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CONTACT: Tidewater Inc., Quinn Fanning, Executive Vice President and Chief Financial Officer, 713-470-5231; Jason Stanley, Director, Investor Relations, 713-470-5292
SOURCE Tidewater Inc.
