Tidewater Reports Results For The Three Months Ended June 30, 2018
HOUSTON, Aug. 13, 2018 /PRNewswire/ -- Tidewater Inc. (NYSE:TDW) announced today a net loss for the three months ended June 30, 2018, of $10.9 million, or $0.44 per common share, on revenues of $105.6 million.
As more fully explained in the company's Form 10-Q for the quarter ended June 30, 2018, 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 $10.9 million ($0.44 per common share) net loss for the three months ending June 30, 2018 were the following:
-- $6.8 million ($0.27 per common share) of Foreign exchange losses, $5.8
million ($0.23 per common share) of which is included in Equity in net
earnings (losses) of unconsolidated companies and related to our Angola
joint venture, Sonatide.
-- $4.9 million ($0.20 per common share) gain included in Equity in net
earnings (losses) of unconsolidated companies, representing dividends
received from Sonatide ($12.3 million) in excess of the company's
investment balance ($7.3 million) at June 30, 2018.
-- $1.2 million ($0.05 per common share) in non-cash Asset impairments that
resulted from impairment reviews undertaken during the three months
ended June 30, 2018.
Consolidated earnings (loss) before interest, taxes, depreciation and amortization (EBITDA) for the three months ended June 30, 2018, was $16.2 million, which excludes $1.2 million of Asset impairments, but includes $3.2 million of stock-based compensation expense, $6.8 million of Foreign exchange losses and $4.9 million of Sonatide dividends received in excess of our investment balance. (See disclosures related to Non-GAAP measures in other fleet and financial data beginning on page 10 herein.)
John Rynd, Tidewater President and Chief Executive Officer commented, "Our results for the second quarter reflect strong execution by our team and a modest improvement in the overall market. As expected, utilization, vessel revenues and vessel operating margin recovered relative to reported results in the first quarter, and average day rates were generally stable quarter-to-quarter. Our focus for the remainder of the year will be on maintaining our global commitment to safe operations and high quality, cost efficient customer service. In addition, we are executing our business plan in regards to cash flow and other financial targets. We will also continue to work with the team at GulfMark to develop integration plans that will allow us to quickly and fully realize identified cost and operational synergies and to best position the combined company for future organic and other growth opportunities. As previously disclosed, we expect to close the GulfMark transaction during the fourth quarter. We continue to believe that the combination of Tidewater and GulfMark creates clear and compelling value for stakeholders of both companies. There are no financing contingencies associated with the proposed Tidewater/GulfMark merger and we are committed to completing the transaction."
Common shares and New Creditor Warrants, each of which is exercisable to acquire one common share at a price of $0.001, and the sum of common shares and New Creditor Warrants outstanding at June 30, 2018 were 26,085,274, 3,924,441 and 30,009,715, respectively.
Tidewater will hold a conference call to discuss results for the three months ended June 30, 2018 on Tuesday, August 14, 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 August 14, 2018, and will continue until 11:59 p.m. Central Time on August 16, 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 47353238.
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 September 14, 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. For risks related to the proposed transaction with GulfMark Offshore Inc. ("GulfMark"), please see the press release dated July 16, 2018, issued by Tidewater and GulfMark.
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.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
(Unaudited)
(In thousands, except share and per share data)
Successor Predecessor Successor Predecessor
--------- ----------- --------- -----------
Quarter Ended Quarter Ended Six Months Ended Six Months Ended
June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017
------------- ------------- ------------- -------------
Revenues:
Vessel revenues $104,174 112,257 191,668 269,162
Other operating revenues 1,427 2,849 5,426 6,693
------------------------ ----- ----- ----- -----
105,601 115,106 197,094 275,855
------- ------- ------- -------
Costs and expenses:
Vessel operating costs 68,012 83,773 129,376 164,618
Costs of other operating revenues 642 1,585 3,116 4,274
General and administrative 24,425 33,059 47,990 74,786
Vessel operating leases - 5,542 - 13,985
Depreciation and amortization 12,785 36,287 24,802 73,879
Gain on asset dispositions, net (1,338) (3,189) (3,257) (9,253)
Asset impairments 1,215 163,423 7,401 228,280
----------------- ----- ------- ----- -------
105,741 320,480 209,428 550,569
------- ------- ------- -------
Operating loss (140) (205,374) (12,334) (274,714)
Other income (expenses):
Foreign exchange loss (1,002) (1,157) (1,350) (493)
Equity in net earnings (losses) of unconsolidated 390 4,517 (15,049) 7,358
companies
Interest income and other, net 2,914 1,680 2,786 3,268
Reorganization items - (313,176) - (313,176)
Interest and other debt costs, net (7,547) (10,605) (15,146) (31,613)
---------------------------------- ------ ------- ------- -------
(5,245) (318,741) (28,759) (334,656)
------ -------- ------- --------
Loss before income taxes (5,385) (524,115) (41,093) (609,370)
Income tax expense 5,797 295 9,118 2,012
------------------ ----- --- ----- -----
Net loss $(11,182) (524,410) (50,211) (611,382)
Less: Net income attributable to noncontrolling interests (242) 24 (99) 7,907
--------------------------------------------------------- ---- --- --- -----
Net loss attributable to Tidewater Inc. $(10,940) (524,434) (50,112) (619,289)
--------------------------------------- -------- -------- ------- --------
Basic loss per common share $(0.44) (11.13) (2.09) (13.15)
=========================== ====== ====== ===== ======
Diluted loss per common share $(0.44) (11.13) (2.09) (13.15)
============================= ====== ====== ===== ======
Weighted average common shares outstanding 24,654,220 47,121,304 23,989,254 47,101,155
Dilutive effect of stock options and restricted stock - - - -
----------------------------------------------------- --- --- --- ---
Adjusted weighted average common shares 24,654,220 47,121,304 23,989,254 47,101,155
======================================= ========== ========== ========== ==========
Note (A): The company did not incur any restructuring-related professional services costs during the quarter and six months ended June 30, 2018 (Successor), but did incur professional services costs related the proposed combination with GulfMark during the quarter ended June 30, 2018 of $1.5 million. Restructuring-related professional services costs included in general and administrative expenses for the quarter and six months ended June 30, 2017 (Predecessor), were $6.7 million and $23.4 million, respectively. General and administrative expenses for the quarter and six months ended June 30, 2018 (Successor) included stock-based compensation of $3.2 million and $6.1 million, respectively. General and administrative expenses for the quarter and six months ended June 30, 2017 (Predecessor) included stock-based compensation of $0.3 million and ($0.6) million, respectively.
Note (B): Equity in net earnings (losses) of unconsolidated companies for the quarter and six months ended June 30, 2018 (Successor) includes $5.8 million and $20.6 million of foreign exchange losses, respectively, related to our Angola joint venture, Sonatide.
Note (C): Common shares and new creditor warrants and the sum of common shares and New Creditor Warrants outstanding at June 30, 2018 (Successor) were 26,085,274, 3,924,441 and 30,009,715, respectively.
TIDEWATER INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and par value data)
Successor
---------
June 30, December 31,
ASSETS 2018 2017
------ ---- ----
Current assets:
Cash and cash equivalents $459,286 432,035
Restricted cash 5,213 21,300
Trade and other receivables, net 96,630 114,184
Due from affiliates 197,059 230,315
Marine operating supplies 28,930 28,220
Other current assets 10,213 19,130
-------------------- ------ ------
Total current assets 797,331 845,184
-------------------- ------- -------
Investments in, at equity, and advances to unconsolidated companies 1,335 29,216
Net properties and equipment 803,725 837,520
Deferred drydocking and survey costs 14,372 3,208
Other assets 26,779 31,052
------------ ------ ------
Total assets $1,643,542 1,746,180
============ ========== =========
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $30,561 38,497
Accrued expenses 49,312 54,806
Due to affiliates 62,353 99,448
Accrued property and liability losses 2,790 2,585
Current portion of long-term debt 6,290 5,103
Other current liabilities 17,815 19,693
------------------------- ------ ------
Total current liabilities 169,121 220,132
------------------------- ------- -------
Long-term debt 438,559 443,057
Accrued property and liability losses 2,651 2,471
Other liabilities 57,685 58,576
Commitments and Contingencies
Equity:
Successor Common stock of $0.001 par value, 125,000,000 shares 26 22
authorized, 26,085,274 and 22,115,916 shares issued and outstanding
at June 30, 2018 and December 31, 2017, respectively
Additional paid-in capital 1,064,039 1,059,120
Retained deficit (89,378) (39,266)
Accumulated other comprehensive loss (403) (147)
------------------------------------ ---- ----
Total stockholders' equity 974,284 1,019,729
Noncontrolling interests 1,242 2,215
------------------------ ----- -----
Total equity 975,526 1,021,944
Total liabilities and equity $1,643,542 1,746,180
============================ ========== =========
TIDEWATER INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Unaudited)
(In thousands)
Successor Predecessor Successor Predecessor
--------- ----------- --------- -----------
Quarter Ended Quarter Ended Six Months Ended Six Months Ended
June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017
------------- ------------- ------------- -------------
Net loss $(11,182) (524,410) (50,211) (611,382)
Other comprehensive income:
Unrealized gains (losses) on available for 43 86 (256) (8)
sale securities, net of tax of $0, $0, $0 and
$61
Change in loss on derivative contract, net of - - - 1,317
tax of $0, $0, $0 and $823
Change in supplemental executive retirement - - - (1,721)
plan liability, net of tax of $0, $0, $0 and
($927)
Change in pension plan minimum liability, - - - 399
net of tax of $0, $0, $0 and $215
Change in other benefit plan minimum - - - (3,799)
liability, net of tax of $0, $0, $0 and
($2,046)
-------
Total comprehensive loss $(11,139) (524,324) (50,467) (615,194)
======================== ======== ======== ======= ========
TIDEWATER INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Successor Predecessor
--------- -----------
Six Months Ended Six Months Ended
June 30, 2018 June 30, 2017
------------- -------------
Operating activities:
Net loss $(50,211) (611,382)
Adjustments to reconcile net loss to net cash provided by (used in)
operating
activities:
Reorganization items - 308,011
Depreciation and amortization 22,572 73,879
Amortization of deferred drydocking and survey costs 2,230 -
Amortization of debt premium and discounts (900) -
Provision for deferred income taxes - (7,743)
Gain on asset dispositions, net (3,257) (9,253)
Asset impairments 7,401 228,280
Changes in investments in, at equity, and advances 27,881 (9,163)
to unconsolidated companies
Compensation expense - stock-based 6,139 (562)
Excess tax liability on stock option activity - 4,927
Changes in assets and liabilities, net:
Trade and other receivables (15,097) 57,701
Changes in due to/from related parties, net 19,869 22,983
Marine operating supplies (711) (922)
Other current assets 8,752 (22,668)
Accounts payable 1,709 (15,384)
Accrued expenses (6,652) 17,870
Accrued property and liability losses 205 (816)
Other current liabilities 5,590 (1,216)
Other liabilities 11 3,135
Cash paid for deferred drydocking and survey costs (13,394) -
Other, net 4,846 9,110
---------- ----- -----
Net cash provided by operating activities 16,983 46,787
----------------------------------------- ------ ------
Cash flows from investing activities:
Proceeds from sales of assets 12,968 3,072
Additions to properties and equipment (5,775) (9,982)
Payments related to novated vessel construction contract - 5,272
-------------------------------------------------------- --- -----
Net cash provided by (used in) investing activities 7,193 (1,638)
--------------------------------------------------- ----- ------
Cash flows from financing activities:
Principal payment on long-term debt (2,637) (5,048)
Payments to General Unsecured Creditors (8,377) -
Other (1,998) (6,127)
----- ------ ------
Net cash used in financing activities (13,012) (11,175)
------------------------------------- ------- -------
Net change in cash, cash equivalents and restricted cash 11,164 33,974
Cash, cash equivalents and restricted cash at beginning of period 453,335 649,804
----------------------------------------------------------------- ------- -------
Cash, cash equivalents and restricted cash at end of period $464,499 683,778
=========================================================== ======== =======
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest, net of amounts capitalized $16,134 8,651
Income taxes $10,083 5,778
Supplemental disclosure of non-cash investing activities:
Additions to properties and equipment $ - 282
===================================== === === ===
TIDEWATER INC.
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(Unaudited)
(In thousands)
Accumulated
Additional Retained other Non
Common paid-in (deficit) comprehensive controlling
stock capital earnings loss interest Total
----- ------- -------- ---- -------- -----
Balance at December 31, 2017 (Successor) $22 1,059,120 (39,266) (147) 2,215 1,021,944
Total comprehensive loss - - (50,112) (256) (99) (50,467)
Issuance of common stock 4 (2) - - - 2
Amortization of restricted stock units - 6,047 - - - 6,047
Acquisition of noncontrolling interest - (1,126) - - (874) (2,000)
-------------------------------------- --- ------ --- --- ---- ------
Balance at June 30, 2018 (Successor) $26 1,064,039 (89,378) (403) 1,242 975,526
=================================== === ========= ======= ==== ===== =======
Balance at December 31, 2016 (Predecessor) $4,707 171,018 1,570,027 (6,446) 8,258 1,747,564
Total comprehensive loss - - (619,289) (3,812) 7,907 (615,194)
Stock option activity - 562 - - - 562
Cancellation of restricted stock awards - - 157 - - 157
Amortization/cancellation of restricted stock units 5 (6,064) - - - (6,059)
Cash paid to noncontrolling interests - - - - (1,200) (1,200)
------------------------------------- --- --- --- --- ------ ------
Balance at June 30, 2017 (Predecessor) $4,712 165,516 950,895 (10,258) 14,965 1,125,830
===================================== ====== ======= ======= ======= ====== =========
The company's vessel revenues and vessel operating costs and the related percentage of total vessel revenues, were as follows:
Successor Predecessor Successor Predecessor
--------- ----------- --------- -----------
Quarter Ended Quarter Ended Six Months Ended Six Months Ended
June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017
------------- ------------- ------------- -------------
(In thousands) % % % %
------------- --- --- --- ---
Vessel revenues:
Americas (D) $32,601 31% 31,887 28% 58,682 31% 112,420 42%
Middle East/Asia Pacific 22,406 21% 27,766 25% 40,794 21% 54,444 20%
Europe/Mediterranean Sea 13,357 13% 11,031 10% 22,980 12% 21,197 8%
West Africa 35,810 35% 41,573 37% 69,212 36% 81,101 30%
----------- ------ --- ------ --- ------ --- ------ ---
Total vessel revenues $104,174 100% 112,257 100% 191,668 100% 269,162 100%
===================== ======== === ======= === ======= === ======= ===
Vessel operating costs:
Crew costs $36,368 35% 42,210 38% 70,592 37% 84,039 31%
Repair and maintenance 7,978 8% 13,844 12% 15,682 8% 30,918 11%
Insurance and loss reserves 2,191 2% 3,124 3% 1,120 2% 1,357 1%
Fuel, lube and supplies 8,181 8% 9,428 8% 17,193 9% 18,707 7%
Other 13,294 13% 15,167 14% 24,789 13% 29,597 11%
----- ------ --- ------ --- ------ --- ------ ---
Total vessel operating costs 68,012 65% 83,773 75% 129,376 69% 164,618 61%
Vessel operating margin (E) $36,162 35% 28,484 25% 62,292 31% 104,544 39%
========================== ======= === ====== === ====== === ======= ===
Note (D): Included in Americas vessel revenues for the six months ended June 30, 2017 (Predecessor) is $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract.
Note (E): 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 Successor Predecessor
--------- ----------- --------- -----------
Quarter Ended Quarter Ended Six Months Ended Six Months Ended
(In thousands) June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017
------------- ------------- ------------- ------------- -------------
Vessel operating margin $36,162 28,484 $62,292 104,544
General and administrative expenses - vessel (16,613) (18,002) (33,480) (37,447)
operations
Vessel operating leases - (5,542) - (13,985)
Depreciation and amortization - vessel operations (12,680) (34,892) (24,592) (71,065)
------------------------------------------------- ------- ------- ------- -------
Vessel operating profit (loss) $6,869 (29,952) $4,220 (17,953)
============================= ====== ======= ====== =======
The company's other operating profit (loss) consists of the following:
Successor Predecessor Successor Predecessor
--------- ----------- --------- -----------
Quarter Ended Quarter Ended Six Months Ended Six Months Ended
(In thousands) June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017
------------- ------------- ------------- ------------- -------------
Other operating revenues $1,427 2,849 5,426 6,693
Costs of other marine revenues (642) (1,585) (3,116) (4,274)
General and administrative expenses - other (2) (355) (16) (880)
operating activities
Depreciation and amortization - other operating (5) (854) (10) (1,709)
activities
----------
Other operating profit (loss) $778 55 2,284 (170)
============================ ==== === ===== ====
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 Successor Predecessor
--------- ----------- --------- -----------
Quarter Ended Quarter Ended Six Months Ended Six Months Ended
June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017
------------- ------------- ------------- -------------
(In thousands) % % % %
------------- --- --- --- ---
Vessel operating profit (loss):
Americas (F) $5,681 5% (15,699) (14%) $10,592 5% 14,919 5%
Middle East/Asia Pacific 625 1% (1,316) (1%) (1,628) (1%) (7,480) (3%)
Europe/Mediterranean Sea (1,142) (1%) (10,163) (9%) (4,696) (2%) (17,265) (6%)
West Africa 1,705 2% (2,774) (2%) (48) <1% (8,127) (3%)
----------- ----- --- ------ --- --- --- ------ ---
6,869 7% (29,952) (26%) 4,220 2% (17,953) (7%)
Other operating profit (loss) 778 1% 55 <1% 2,284 1% (170) (<1%)
---------------------------- --- --- --- --- ----- --- ---- ----
7,647 7% (29,897) (26%) 6,504 2% (18,123) (7%)
Corporate general and administrative (7,810) (7%) (14,702) (13%) (14,494) (7%) (36,459) (13%)
expenses (G)
Corporate depreciation (100) (<1%) (541) (<1%) (200) (<1%) (1,105) (<1%)
---------------------- ---- ---- ---- ---- ---- ---- ------ ----
Corporate expenses (7,910) (7%) (15,243) (13%) (14,694) (7%) (37,564) (13%)
Gain on asset dispositions, net 1,338 1% 3,189 3% 3,257 2% 9,253 3%
Asset impairments (1,215) (1%) (163,423) (142%) (7,401) (4%) (228,280) (83%)
----------------- ------ --- -------- ----- ------ --- -------- ----
Operating loss $(140) (<1%) (205,374) (178%) $(12,334) (6%) (274,714) (100%)
-------------- ----- ---- -------- ----- -------- --- -------- -----
Foreign exchange loss (1,002) (1%) (1,157) (1%) (1,350) (1%) (493) (<1%)
Equity in net earnings (losses) of 390 <1% 4,517 4% (15,049) (8%) 7,358 3%
unconsolidated companies
Interest income and other, net 2,914 3% 1,680 1% 2,786 2% 3,268 1%
Reorganization items - - (313,176) (272%) - - (313,176) (114%)
Interest and other debt costs (7,547) (7%) (10,605) (9%) (15,146) (8%) (31,613) (11%)
----------------------------- ------ --- ------- --- ------- --- ------- ----
Loss before income taxes $(5,385) (5%) (524,115) (455%) $(41,093) (21%) (609,370) (221%)
======================== ======= === ======== ===== ======== ==== ======== =====
Note (F): Americas segment vessel operating profit for the six months ended June 30, 2017 (Predecessor) includes $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract.
Note (G): The company did not incur any restructuring-related professional services costs during the quarter and six months ended June 30, 2018 (Successor), but did incur professional services costs related the proposed combination with GulfMark during the quarter ended June 30, 2018 of $1.5 million. Restructuring-related professional services costs included in general and administrative expenses for the quarter and six months ended June 30, 2017 (Predecessor), were $6.7 million and $23.4 million, respectively. General and administrative expenses for the quarter and six months ended June 30, 2018 (Successor) included stock-based compensation of $3.2 million and $6.1 million, respectively. General and administrative expenses for the quarter and six months ended June 30, 2017 (Predecessor) included stock-based compensation of $0.3 million and ($0.6) million, respectively.
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. The quarter ended June 30, 2017 is a Predecessor period while the quarters ended June 30, 2018, March 31, 2018 and December 31, 2017 are Successor periods.
TIDEWATER INC.
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) - QUARTERLY DATA
(Unaudited)
(In thousands, except share and per share data)
Three Months Ended
------------------
June 30, March 31, December 31, September 30, June 30,
2018 2018 2017 2017 2017
---- ---- ---- ---- ----
Revenues:
Vessel revenues $ 104,174 87,494 101,313 104,911 112,257
Other operating revenues 1,427 3,999 3,140 5,652 2,849
------------------------ ----- ----- ----- ----- -----
105,601 91,493 104,453 110,563 115,106
------- ------ ------- ------- -------
Costs and expenses:
Vessel operating costs 68,012 61,364 68,201 84,966 83,773
Costs of other operating revenues 642 2,474 1,519 3,036 1,585
General and administrative (H) 24,425 23,565 30,373 25,019 33,059
Vessel operating leases - - 91 1,747 5,542
Depreciation and amortization 12,785 12,017 12,195 19,302 36,287
Gain on asset dispositions, net (1,338) (1,919) (6,612) (376) (3,189)
Asset impairments 1,215 6,186 16,777 21,325 163,423
----------------- ----- ----- ------ ------ -------
105,741 103,687 122,544 155,019 320,480
------- ------- ------- ------- -------
Operating loss (140) (12,194) (18,091) (44,456) (205,374)
Other income (expenses):
Foreign exchange loss (1,002) (348) (349) (2,082) (1,157)
Equity in net earnings (losses) of 390 (15,439) 825 1,574 4,517
unconsolidated companies
Interest income and other 2,914 (128) 1,898 1,577 1,680
Reorganization items (H) - - (2,419) (1,085,609) (313,176)
Interest and other debt costs (7,547) (7,599) (7,769) (5,814) (10,605)
----------------------------- ------ ------ ------ ------ -------
(5,245) (23,514) (7,814) (1,090,354) (318,741)
------ ------- ------ ---------- --------
Loss before income taxes (5,385) (35,708) (25,905) (1,134,810) (524,115)
Income tax (benefit) expense 5,797 3,321 (2,706) 3,216 295
---------------------------- ----- ----- ------ ----- ---
Net loss $ (11,182) (39,029) (23,199) (1,138,026) (524,410)
Less: Net income (loss) attributable to (242) 143 374 142 24
noncontrolling interests
------------------------
Net loss attributable to Tidewater Inc. $ (10,940) (39,172) (23,573) (1,138,168) (524,434)
--------------------------------------- --- ------- ------- ------- ---------- --------
Basic loss per common share $ (0.44) (1.67) (1.02) - -
=========================== === ===== ===== ===== === ===
Diluted loss per common share $ (0.44) (1.67) (1.02) - -
============================= === ===== ===== ===== === ===
Weighted average common shares outstanding (I) 24,654,220 23,424,943 23,137,909 - -
Dilutive effect of stock options and restricted stock - - - - -
----------------------------------------------------- --- --- --- --- ---
Adjusted weighted average common shares 24,654,220 23,424,943 23,137,909 - -
======================================= ========== ========== ========== === ===
Vessel operating margin $ 36,162 26,130 33,112 19,945 28,484
----------------------- --- ------ ------ ------ ------ ------
Note (H): Restructuring-related items:
Restructuring-related professional services $ - - - - 6,709
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
===== === === === ===== ====== ======
Note (I): Weighted average shares outstanding for the quarters ended June 30, 2018, March 31, 2018 and December 31, 2017 include 0, 108,044 and 924,125 shares issuable upon the exercise of New Creditor Warrants held by U.S. citizens, respectively, at June 30, 2018, March 31, 2018 and December 31, 2017. Common shares and New Creditor Warrants and the sum of common shares and New Creditor Warrants outstanding at June 30, 2018 were 26,085,274, 3,924,441 and 30,009,715, respectively. Common shares and New Creditor Warrants and the sum of common shares and New Creditor Warrants outstanding at March 31, 2018 were 23,988,075, 6,021,696 and 30,009,771, respectively. 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)
June 30, March 31, December 31, September 30, June 30,
ASSETS 2018 2018 2017 2017 2017
------ ---- ---- ---- ---- ----
Current assets:
Cash and cash equivalents $ 459,286 442,472 432,035 459,978 683,778
Restricted cash 5,213 2,847 21,300 - -
Trade and other receivables, net (J) 96,630 115,754 114,184 120,271 116,612
Due from affiliates 197,059 207,919 230,315 245,056 252,810
Marine operating supplies 28,930 28,896 28,220 31,083 31,097
Other current assets 10,213 18,181 19,130 14,813 34,619
-------------------- ------ ------ ------ ------ ------
Total current assets 797,331 816,069 845,184 871,201 1,118,916
-------------------- ------- ------- ------- ------- ---------
Investments in, at equity, and advances to 1,335 13,503 29,216 25,729 49,216
unconsolidated companies
Net properties and equipment 803,725 814,263 837,520 868,689 2,659,314
Deferred drydocking and survey costs 14,372 11,430 3,208 388 -
Other assets 26,779 30,783 31,052 46,845 92,134
------------ ------ ------ ------ ------ ------
Total assets $ 1,643,542 1,686,048 1,746,180 1,812,852 3,919,580
============ === ========= ========= ========= ========= =========
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable (J) $ 30,561 45,781 38,497 39,439 35,087
Accrued expenses 49,312 56,408 54,806 61,115 63,155
Due to affiliates 62,353 78,135 99,448 112,642 121,037
Accrued property and liability losses 2,790 2,852 2,585 2,774 2,758
Current portion of long-term debt 6,290 5,215 5,103 5,174 10,106
Other current liabilities 17,815 8,826 19,693 38,041 28,029
------------------------- ------ ----- ------ ------ ------
Total current liabilities 169,121 197,217 220,132 259,185 260,172
------------------------- ------- ------- ------- ------- -------
Long-term debt 438,559 442,729 443,057 445,677 80,863
Accrued property and liability losses 2,651 2,561 2,471 2,607 2,776
Other liabilities and deferred credits 57,685 58,060 58,576 62,569 60,382
Liabilities subject to compromise - - - - 2,389,557
Commitments and Contingencies
Equity:
Common stock 26 24 22 21 4,712
Additional paid-in capital 1,064,039 1,061,983 1,059,120 1,056,563 165,516
Retained earnings (89,378) (78,438) (39,266) (15,693) 950,895
Accumulated other comprehensive income (loss) (403) (446) (147) 82 (10,258)
-------------------------------------------- ---- ---- ---- --- -------
Total stockholders' equity 974,284 983,123 1,019,729 1,040,973 1,110,865
Noncontrolling interests 1,242 2,358 2,215 1,841 14,965
------------------------ ----- ----- ----- ----- ------
Total equity 975,526 985,481 1,021,944 1,042,814 1,125,830
Total liabilities and equity $ 1,643,542 1,686,048 1,746,180 1,812,852 3,919,580
============================ === ========= ========= ========= ========= =========
Supplemental Information
Due from related parties, net of due to related
parties:
Sonatide (Angola) $ 106,084 129,784 130,867 132,414 131,773
DTDW (Nigeria) 28,622 25,184 23,708 20,423 17,164
------------- ------ ------ ------ ------ ------
Total $ 134,706 154,968 154,575 152,837 148,937
----- --- ------- ------- ------- ------- -------
Note (J): Included in Trade and other receivables, net, for the quarters ended March 31, 2018, December 31, 2017, September 31, 2017 and June 30, 2017 are $37,761; $33,353; $27,616 and $22,919, respectively, of amounts due from our DTDW (Nigeria) joint venture. Included in Accounts payable for the quarters ended March 31, 2018, December 31, 2017, September 31, 2017 and June 30, 2017 are $12,577; $9,645; $7,193 and $5,755, respectively, of amounts due to our DTDW (Nigeria) joint venture.
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
Three Months Ended
------------------
June 30, March 31, December 31, September 30, June 30,
2018 2018 2017 2017 2017
---- ---- ---- ---- ----
VESSEL REVENUE BY VESSEL CLASS
(In thousands):
---------------
Americas fleet:
---------------
Deepwater $ 22,661 16,205 17,062 14,102 17,313
Towing-supply 7,560 6,846 8,263 9,319 11,274
Other 2,380 3,030 3,010 2,989 3,300
----- ----- ----- ----- ----- -----
Total $ 32,601 26,081 28,335 26,410 31,887
Middle East/Asia Pacific fleet:
-------------------------------
Deepwater $ 9,603 9,564 9,066 8,393 10,701
Towing-supply 12,783 8,824 14,110 16,823 17,065
Other 20 - - - -
----- --- --- --- --- ---
Total $ 22,406 18,388 23,176 25,216 27,766
Europe/Mediterranean Sea fleet:
-------------------------------
Deepwater $ 12,596 9,020 10,395 11,192 8,237
Towing-supply 761 603 641 2,102 2,794
------------- --- --- --- ----- -----
Total $ 13,357 9,623 11,036 13,294 11,031
West Africa fleet:
------------------
Deepwater $ 14,314 13,938 14,358 13,978 13,921
Towing-supply 17,321 16,139 19,807 21,071 24,225
Other 4,175 3,325 4,601 4,942 3,427
----- ----- ----- ----- ----- -----
Total $ 35,810 33,402 38,766 39,991 41,573
Worldwide fleet:
----------------
Deepwater $ 59,174 48,727 50,881 47,665 50,172
Towing-supply 38,425 32,412 42,821 49,315 55,358
Other 6,575 6,355 7,611 7,931 6,727
----- ----- ----- ----- ----- -----
Total $ 104,174 87,494 101,313 104,911 112,257
===== === ======= ====== ======= ======= =======
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
Three Months Ended
------------------
June 30, March 31, December 31, September 30, June 30,
2018 2018 2017 2017 2017
---- ---- ---- ---- ----
AVERAGE NUMBER OF VESSELS:
--------------------------
Americas fleet:
---------------
Deepwater 25 26 31 39 41
Towing-supply 15 15 16 19 21
Other 6 6 6 8 8
----- --- --- --- --- ---
Total 46 47 53 66 70
Stacked vessels (19) (20) (27) (39) (35)
--------------- --- --- --- --- ---
Active vessels 27 27 26 27 35
-------------- --- --- --- --- ---
Middle East/Asia Pacific fleet:
-------------------------------
Deepwater 18 19 21 21 22
Towing-supply 35 37 39 43 44
Other - - - 1 1
----- --- --- --- --- ---
Total 53 56 60 65 67
Stacked vessels (12) (15) (20) (25) (25)
--------------- --- --- --- --- ---
Active vessels 41 41 40 40 42
-------------- --- --- --- --- ---
Europe/Mediterranean Sea fleet:
-------------------------------
Deepwater 18 17 17 18 17
Towing-supply 4 4 4 6 6
Other - - - 1 2
----- --- --- --- --- ---
Total 22 21 21 25 25
Stacked vessels (4) (5) (5) (5) (6)
--------------- --- --- --- --- ---
Active vessels 18 16 16 20 19
-------------- --- --- --- --- ---
West Africa fleet:
------------------
Deepwater 26 27 27 25 24
Towing-supply 31 35 37 38 38
Other 27 31 31 32 35
----- --- --- --- --- ---
Total 84 93 95 95 97
Stacked vessels (29) (39) (37) (37) (43)
--------------- --- --- --- --- ---
Active vessels 55 54 58 58 54
-------------- --- --- --- --- ---
Worldwide fleet:
----------------
Deepwater 87 89 96 103 104
Towing-supply 85 91 96 106 109
Other 33 37 37 42 46
----- --- --- --- --- ---
Total 205 217 229 251 259
Stacked vessels (64) (79) (89) (106) (109)
--------------- --- --- --- ---- ----
Active vessels 141 138 140 145 150
============== === === === === ===
Total active 141 138 140 145 150
Total stacked 64 79 89 106 109
Total joint venture and other vessels 8 8 8 8 8
------------------------------------- --- --- --- --- ---
Total 213 225 237 259 267
===== === === === === ===
Note (K): Included in total owned or chartered vessels at June 30, 2018 (Successor), March 31, 2018 (Successor), December 31, 2017 (Successor), September 30, 2017 (Successor) and June 30, 2017 (Predecessor), were 66, 70, 89, 91 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 total fleet utilization statistics.
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
Three Months Ended
------------------
June 30, March 31, December 31, September 30, June 30,
2018 2018 2017 2017 2017
---- ---- ---- ---- ----
AVERAGE NUMBER OF LEASED VESSELS
INCLUDED IN VESSEL COUNTS ABOVE:
--------------------------------
Americas fleet:
---------------
Deepwater - - - 7 8
Towing-supply - - - 3 3
------------- --- --- --- --- ---
Total - - - 10 11
Stacked vessels - - - (10) (10)
--------------- --- --- --- --- ---
Active vessels - - - - 1
-------------- --- --- --- --- ---
Europe/Mediterranean Sea fleet:
-------------------------------
Towing-supply - - - 2 2
------------- --- --- --- --- ---
Total - - - 2 2
Stacked vessels - - - - -
--------------- --- --- --- --- ---
Active vessels - - - 2 2
-------------- --- --- --- --- ---
West Africa fleet:
------------------
Towing-supply - - - 3 3
------------- --- --- --- --- ---
Total - - - 3 3
Stacked vessels - - - - -
--------------- --- --- --- --- ---
Active vessels - - - 3 3
-------------- --- --- --- --- ---
Worldwide fleet:
----------------
Deepwater - - - 7 8
Towing-supply - - - 8 8
------------- --- --- --- --- ---
Total - - - 15 16
Stacked vessels - - - (10) (10)
--------------- --- --- --- --- ---
Active vessels - - - 5 6
============== === === === === ===
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
Three Months Ended
------------------
June 30, March 31, December 31, September 30, June 30,
2018 2018 2017 2017 2017
---- ---- ---- ---- ----
AVAILABLE DAYS - TOTAL FLEET:
-----------------------------
Americas fleet:
---------------
Deepwater 2,275 2,309 2,893 3,545 3,731
Towing-supply 1,399 1,350 1,441 1,773 1,941
Other 546 540 574 736 728
----- --- --- --- --- ---
Total 4,220 4,199 4,908 6,054 6,400
Middle East/Asia Pacific fleet:
-------------------------------
Deepwater 1,611 1,738 1,908 1,932 2,001
Towing-supply 3,203 3,348 3,604 3,980 3,974
Other 3 - 3 92 91
----- --- --- --- --- ---
Total 4,817 5,086 5,515 6,004 6,066
Europe/Mediterranean Sea fleet:
-------------------------------
Deepwater 1,638 1,527 1,588 1,649 1,539
Towing-supply 364 360 379 552 567
Other - - - 136 182
----- --- --- --- --- ---
Total 2,002 1,887 1,967 2,337 2,288
West Africa fleet:
------------------
Deepwater 2,393 2,470 2,484 2,347 2,193
Towing-supply 2,821 3,123 3,340 3,493 3,437
Other 2,417 2,745 2,852 2,885 3,170
----- ----- ----- ----- ----- -----
Total 7,631 8,338 8,676 8,725 8,800
Worldwide fleet:
----------------
Deepwater 7,917 8,044 8,873 9,473 9,464
Towing-supply 7,787 8,181 8,764 9,798 9,919
Other 2,966 3,285 3,429 3,849 4,171
----- ----- ----- ----- ----- -----
Total 18,670 19,510 21,066 23,120 23,554
===== ====== ====== ====== ====== ======
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
Three Months Ended
------------------
June 30, March 31, December 31, September 30, June 30,
2018 2018 2017 2017 2017
---- ---- ---- ---- ----
OUT-OF-SERVICE - STACKED DAYS:
------------------------------
Americas fleet:
---------------
Deepwater 819 898 1,565 2,359 2,110
Towing-supply 728 720 705 889 849
Other 182 180 206 368 273
----- --- --- --- --- ---
Total 1,729 1,798 2,476 3,616 3,232
Middle East/Asia Pacific fleet:
-------------------------------
Deepwater 364 478 705 746 702
Towing-supply 780 873 1,089 1,435 1,446
Other - - 3 92 91
----- --- --- --- --- ---
Total 1,144 1,351 1,797 2,273 2,239
Europe/Mediterranean Sea fleet:
-------------------------------
Deepwater 91 167 276 276 334
Towing-supply 243 270 180 92 91
Other - - - 136 182
----- --- --- --- --- ---
Total 334 437 456 504 607
West Africa fleet:
------------------
Deepwater 590 744 671 644 713
Towing-supply 1,183 1,463 1,472 1,484 1,463
Other 878 1,305 1,295 1,246 1,714
----- --- ----- ----- ----- -----
Total 2,652 3,512 3,438 3,374 3,890
Worldwide fleet:
----------------
Deepwater 1,864 2,287 3,217 4,025 3,859
Towing-supply 2,934 3,326 3,446 3,900 3,849
Other 1,060 1,485 1,504 1,842 2,260
----- ----- ----- ----- ----- -----
Total 5,859 7,098 8,167 9,767 9,968
===== ===== ===== ===== ===== =====
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
Three Months Ended
------------------
June 30, March 31, December 31, September 30, June 30,
2018 2018 2017 2017 2017
---- ---- ---- ---- ----
AVAILABLE DAYS - ACTIVE FLEET:
------------------------------
Americas fleet:
---------------
Deepwater 1,456 1,411 1,328 1,186 1,621
Towing-supply 671 630 736 884 1,092
Other 364 360 368 368 455
----- --- --- --- --- ---
Total 2,491 2,401 2,432 2,438 3,168
Middle East/Asia Pacific fleet:
-------------------------------
Deepwater 1,247 1,260 1,203 1,186 1,299
Towing-supply 2,423 2,475 2,515 2,545 2,528
Other 3 - - - -
----- --- --- --- --- ---
Total 3,673 3,735 3,718 3,731 3,827
Europe/Mediterranean Sea fleet:
-------------------------------
Deepwater 1,547 1,360 1,312 1,373 1,205
Towing-supply 121 90 199 460 476
------------- --- --- --- --- ---
Total 1,668 1,450 1,511 1,833 1,681
West Africa fleet:
------------------
Deepwater 1,803 1,726 1,813 1,703 1,480
Towing-supply 1,638 1,660 1,868 2,009 1,974
Other 1,539 1,440 1,557 1,639 1,456
----- ----- ----- ----- ----- -----
Total 4,979 4,826 5,238 5,351 4,910
Worldwide fleet:
----------------
Deepwater 6,053 5,757 5,656 5,448 5,605
Towing-supply 4,853 4,855 5,318 5,898 6,070
Other 1,906 1,800 1,925 2,007 1,911
----- ----- ----- ----- ----- -----
Total 12,811 12,412 12,899 13,353 13,586
===== ====== ====== ====== ====== ======
Note (L): 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
------------------
June 30, March 31, December 31, September 30, June 30,
2018 2018 2017 2017 2017
---- ---- ---- ---- ----
UTILIZATION - TOTAL FLEET:
--------------------------
Americas fleet:
---------------
Deepwater 54.8% 42.2% 32.2% 20.5% 23.4%
Towing-supply 37.7 35.7 39.0 36.1 36.4
Other 48.3 61.9 60.8 45.3 50.0
----- ---- ---- ---- ---- ----
Total 48.3% 42.7% 37.6% 28.1% 30.3%
Middle East/Asia Pacific fleet:
-------------------------------
Deepwater 64.2% 54.4% 48.7% 44.0% 54.4%
Towing-supply 60.2 40.0 57.7 57.1 57.2
Other 100.0 - - - -
----- ----- --- --- --- ---
Total 61.6% 44.9% 54.5% 52.0% 55.4%
Europe/Mediterranean Sea fleet:
-------------------------------
Deepwater 79.5% 64.7% 69.4% 71.7% 59.7%
Towing-supply 29.0 25.0 24.1 53.8 66.1
------------- ---- ---- ---- ---- ----
Total 70.3% 57.1% 60.7% 63.3% 56.5%
West Africa fleet:
------------------
Deepwater 60.2% 52.3% 49.4% 49.3% 46.1%
Towing-supply 47.0 39.0 45.7 45.2 49.4
Other 49.2 36.6 44.8 44.6 33.1
----- ---- ---- ---- ---- ----
Total 51.9% 42.2% 46.5% 46.1% 42.7%
Worldwide fleet:
----------------
Deepwater 63.5% 52.2% 47.2% 41.3% 41.1%
Towing-supply 49.9 38.3 48.6 48.9 50.9
Other 49.1 40.8 47.4 42.1 33.9
----- ---- ---- ---- ---- ----
Total 55.5% 44.4% 47.8% 44.7% 44.0%
===== ==== ==== ==== ==== ====
Note (M): Utilization Total Fleet equals Days Worked / Available Days Total Fleet.
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
Three Months Ended
------------------
June 30, March 31, December 31, September 30, June 30,
2018 2018 2017 2017 2017
---- ---- ---- ---- ----
UTILIZATION - ACTIVE FLEET:
---------------------------
Americas fleet:
---------------
Deepwater 85.7% 69.1% 70.2% 61.2% 53.8%
Towing-supply 78.5 76.6 76.4 72.3 64.7
Other 72.4 92.9 94.8 90.6 79.9
----- ---- ---- ---- ---- ----
Total 81.8% 74.6% 75.8% 69.7% 61.3%
Middle East/Asia Pacific fleet:
-------------------------------
Deepwater 82.9% 75.0% 77.2% 71.6% 83.8%
Towing-supply 79.6 54.1 82.7 89.4 89.9
Other 100.0 - - - -
----- ----- --- --- --- ---
Total 80.8% 61.2% 80.9% 83.7% 87.8%
Europe/Mediterranean Sea fleet:
-------------------------------
Deepwater 84.2% 72.6% 84.0% 86.1% 76.2%
Towing-supply 87.4 100.0 45.8 64.6 78.7
------------- ---- ----- ---- ---- ----
Total 84.4% 74.3% 79.0% 80.7% 76.9%
West Africa fleet:
------------------
Deepwater 79.9% 74.8% 67.7% 68.0% 68.3%
Towing-supply 81.0 73.4 81.7 78.6 86.0
Other 77.3 69.9 82.0 78.4 72.1
----- ---- ---- ---- ---- ----
Total 79.5% 72.8% 76.9% 75.2% 76.5%
Worldwide fleet:
----------------
Deepwater 83.0% 72.9% 74.1% 71.9% 69.4%
Towing-supply 80.1 64.5 80.1 81.2 83.2
Other 76.4 74.5 84.5 80.6 74.0
----- ---- ---- ---- ---- ----
Total 80.9% 69.8% 78.1% 77.3% 76.2%
===== ==== ==== ==== ==== ====
Note (N): Utilization Active Fleet equals Days Worked / Available Days - Active Fleet
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
Three Months Ended
------------------
June 30, March 31, December 31, September 30, June 30,
2018 2018 2017 2017 2017
---- ---- ---- ---- ----
AVERAGE VESSEL DAY RATES:
-------------------------
Americas fleet:
---------------
Deepwater $ 18,162 16,626 18,301 19,429 19,869
Towing-supply 14,349 14,191 14,700 14,577 15,959
Other 9,029 9,061 8,628 8,968 9,071
----- ----- ----- ----- ----- -----
Total $ 15,995 14,558 15,372 15,550 16,423
Middle East/Asia Pacific fleet:
-------------------------------
Deepwater $ 9,287 10,122 9,762 9,883 9,825
Towing-supply 6,627 6,589 6,787 7,398 7,511
Other 6,122 - - - -
----- ----- --- --- --- ---
Total $ 7,554 8,051 7,705 8,073 8,261
Europe/Mediterranean Sea fleet:
-------------------------------
Deepwater $ 9,676 9,132 9,427 9,464 8,967
Towing-supply 7,195 6,695 7,035 7,077 7,459
------------- ----- ----- ----- ----- -----
Total $ 9,489 8,928 9,244 8,985 8,530
West Africa fleet:
------------------
Deepwater $ 9,940 10,795 11,702 12,069 13,768
Towing-supply 13,054 13,245 12,979 13,339 14,271
Other 3,508 3,306 3,602 3,854 3,265
----- ----- ----- ----- ----- -----
Total $ 9,050 9,501 9,619 9,943 11,061
Worldwide fleet:
----------------
Deepwater $ 11,779 11,606 12,142 12,172 12,897
Towing-supply 9,882 10,355 10,056 10,295 10,961
Other 4,513 4,742 4,681 4,906 4,759
----- ----- ----- ----- ----- -----
Total $ 10,047 10,093 10,056 10,162 10,842
===== === ====== ====== ====== ====== ======
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
Three Months Ended
------------------
June 30, March 31, December 31, September 30, June 30,
(In thousands) 2018 2018 2017 2017 2017
------------- ---- ---- ---- ---- ----
Americas
--------
Vessel revenues $ 32,601 26,081 28,335 26,410 31,887
Vessel operating costs:
Crew costs $ 11,158 9,093 11,190 12,652 14,457
Routine repairs and maintenance 1,471 1,917 2,203 2,210 2,705
Major repairs 58 (187) (144) 4,167 1,136
Insurance and loss reserves 1,031 (551) 788 605 933
Fuel, lube and supplies 1,792 1,618 2,413 2,935 3,394
Other 2,790 406 1,321 2,307 4,655
----- ----- --- ----- ----- -----
Total vessel operating costs $ 18,300 12,296 17,771 24,876 27,280
Vessel operating margin ($) $ 14,301 13,785 10,564 1,534 4,607
Vessel operating margin (%) 43.9% 52.9% 37.3% 5.8% 14.4%
Vessel operating lease expense $ - - - 62 3,787
Vessel depreciation $ 3,141 3,223 3,386 5,488 10,748
Amortization of deferred drydocking and survey $ 389 90 86 4 -
costs
Vessel operations general and administrative $ 5,090 5,561 6,040 5,481 5,771
expenses ($)
Vessel operations general and administrative 15.6% 21.3% 21.3% 20.8% 18.1%
expenses (%)
Vessel operating profit (loss) $ 5,681 4,911 1,052 (9,501) (15,699)
============================= === ===== ===== ===== ====== =======
Americas - Select operating statistics
--------------------------------------
Average vessels - Total fleet (O) 46 47 53 66 70
Utilization - Total fleet 48.3% 42.7% 37.6% 28.1% 30.3%
Average vessels - Active fleet (O) 27 27 26 27 35
Utilization - Active fleet 81.8% 74.6% 75.8% 69.7% 61.3%
Average day rates $ 15,995 14,558 15,372 15,550 16,423
Vessels commencing drydocks 2 7 3 7 2
Major repairs expense and deferred
drydocking and survey costs:
Major repairs expense $ 58 (187) (144) 4,167 1,136
Cash paid for deferred $ 1,097 2,775 554 243 -
drydocking and survey costs
$ 1,155 2,588 410 4,410 1,136
Deferred drydocking and survey costs - $ 3,383 707 239 - -
beginning balance
Cash paid for deferred drydocking and $ 1,097 2,775 554 243 -
survey costs
Amortization of deferred drydocking and $ 389 90 86 4 -
survey costs
Net vessel transfers in/out of the segment $ (17) 9 - - -
Deferred drydocking and survey costs - $ 4,108 3,383 707 239 -
ending balance
Note (O): Average leased vessels - Americas - - - 10 11
fleet
Average leased vessels - Americas active - - - - 1
fleet
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
Three Months Ended
------------------
June 30, March 31, December 31, September 30, June 30,
(In thousands) 2018 2018 2017 2017 2017
------------- ---- ---- ---- ---- ----
Middle East/Asia Pacific
------------------------
Vessel revenues $ 22,406 18,388 23,176 25,216 27,766
Vessel operating costs:
Crew costs $ 8,596 8,108 8,666 9,101 9,795
Routine repairs and maintenance 1,558 1,209 1,733 2,387 2,164
Major repairs 36 254 442 320 511
Insurance and loss reserves 383 (150) 771 626 681
Fuel, lube and supplies 2,221 2,339 2,653 1,725 1,539
Other 2,578 2,742 2,723 2,977 2,908
----- ----- ----- ----- ----- -----
Total vessel operating costs $ 15,372 14,502 16,988 17,136 17,598
Vessel operating margin ($) $ 7,034 3,886 6,188 8,080 10,168
Vessel operating margin (%) 31.4% 21.1% 26.7% 32.0% 36.6%
Vessel operating lease expense $ - - - - -
Vessel depreciation $ 2,521 2,707 2,905 4,028 7,746
Amortization of deferred drydocking and survey $ 323 62 4 - -
costs
Vessel operations general and administrative $ 3,565 3,370 3,772 3,226 3,738
expenses ($)
Vessel operations general and administrative 15.9% 18.3% 16.3% 12.8% 13.5%
expenses (%)
Vessel operating profit (loss) $ 625 (2,253) (493) 826 (1,316)
============================= === === ====== ==== === ======
Middle East/Asia Pacific - Select operating
statistics
----------
Average vessels - Total fleet 53 56 60 65 67
Utilization - Total fleet 61.6% 44.9% 54.5% 52.0% 55.4%
Average vessels - Active fleet 41 41 40 40 42
Utilization - Active fleet 80.8% 61.2% 80.9% 83.7% 87.8%
Average day rates $ 7,554 8,051 7,705 8,073 8,261
Vessels commencing drydocks 3 3 5 1 1
Major repairs expense and deferred
drydocking and survey costs:
Major repairs expense $ 36 254 442 320 511
Cash paid for deferred $ 1,813 1,728 209 - -
drydocking and survey costs
$ 1,849 1,982 651 320 511
===== ===== === === ===
Deferred drydocking and survey costs - $ 1,871 205 - - -
beginning balance
Cash paid for deferred drydocking and $ 1,813 1,728 209 - -
survey costs
Amortization of deferred drydocking and $ 323 62 4 - -
survey costs
Deferred drydocking and survey costs - $ 3,361 1,871 205 - -
ending balance
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
Three Months Ended
------------------
June 30, March 31, December 31, September 30, June 30,
(In thousands) 2018 2018 2017 2017 2017
------------- ---- ---- ---- ---- ----
Europe/Mediterranean Sea
------------------------
Vessel revenues $ 13,357 9,623 11,036 13,294 11,031
Vessel operating costs:
Crew costs $ 5,777 4,991 5,147 6,460 5,593
Routine repairs and maintenance 1,083 1,240 1,145 1,430 1,244
Major repairs 900 338 - 290 1,983
Insurance and loss reserves 247 110 311 206 426
Fuel, lube and supplies 1,136 1,810 1,038 1,050 1,393
Other 1,459 1,606 1,466 1,754 1,835
----- ----- ----- ----- ----- -----
Total vessel operating costs $ 10,602 10,095 9,107 11,190 12,474
Vessel operating margin ($) $ 2,755 (472) 1,929 2,104 (1,443)
Vessel operating margin (%) 20.6% -4.9% 17.5% 15.8% -13.1%
Vessel operating lease expense $ - - - 670 721
Vessel depreciation $ 1,854 1,641 1,641 3,411 6,803
Amortization of deferred drydocking and survey $ 385 163 - - -
costs
Vessel operations general and administrative $ 1,658 1,278 1,073 1,251 1,196
expenses ($)
Vessel operations general and administrative 12.4% 13.3% 9.7% 9.4% 10.8%
expenses (%)
Vessel operating loss $ (1,142) (3,554) (785) (3,228) (10,163)
===================== === ====== ====== ==== ====== =======
Europe/Mediterranean Sea - Select operating
statistics
----------
Average vessels - Total fleet (P) 22 21 21 25 25
Utilization - Total fleet 70.3% 57.1% 60.7% 63.3% 56.5%
Average vessels - Active fleet (P) 18 16 16 20 19
Utilization - Active fleet 84.4% 74.3% 79.0% 80.7% 76.9%
Average day rates $ 9,489 8,928 9,244 8,985 8,530
Vessels commencing drydocks 6 6 - 1 4
Major repairs expense and deferred
drydocking and survey costs:
Major repairs expense $ 900 338 - 290 1,983
Cash paid for deferred $ 1,271 2,633 - - -
drydocking and survey costs
$ 2,171 2,971 - 290 1,983
===== ===== === === =====
Deferred drydocking and survey costs - $ 2,470 - - - -
beginning balance
Cash paid for deferred drydocking and $ 1,271 2,633 - - -
survey costs
Amortization of deferred drydocking and $ 385 163 - - -
survey costs
Deferred drydocking and survey costs - $ 3,356 2,470 - - -
ending balance
Note (P): Average leased vessels - - - - 2 2
Europe/Mediterranean Sea fleet
Average leased vessels - - - - 2 2
Europe/Mediterranean Sea active fleet
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
Three Months Ended
------------------
June 30, March 31, December 31, September 30, June 30,
(In thousands) 2018 2018 2017 2017 2017
------------- ---- ---- ---- ---- ----
West Africa
-----------
Vessel revenues $ 35,810 33,402 38,766 39,991 41,573
Vessel operating costs:
Crew costs $ 10,837 12,032 12,145 13,935 12,365
Routine repairs and maintenance 2,263 2,816 2,246 2,244 2,094
Major repairs 609 117 85 2,521 2,007
Insurance and loss reserves 530 (480) 1,076 1,067 1,084
Fuel, lube and supplies 3,032 3,245 3,296 4,131 3,102
Other 6,467 6,741 5,487 7,866 5,769
----- ----- ----- ----- ----- -----
Total vessel operating costs $ 23,738 24,471 24,335 31,764 26,421
Vessel operating margin ($) $ 12,072 8,931 14,431 8,227 15,152
Vessel operating margin (%) 33.7% 26.7% 37.2% 20.6% 36.4%
Vessel operating lease expense $ - - 91 1,015 1,034
Vessel depreciation $ 3,572 3,703 3,547 5,444 9,595
Amortization of deferred drydocking and survey $ 495 323 112 - -
costs
Vessel operations general and administrative $ 6,300 6,658 9,061 7,135 7,297
expenses ($)
Vessel operations general and administrative 17.6% 19.9% 23.4% 17.8% 17.6%
expenses (%)
Vessel operating profit (loss) $ 1,705 (1,753) 1,620 (5,367) (2,774)
============================= === ===== ====== ===== ====== ======
West Africa - Select operating statistics
-----------------------------------------
Average vessels - Total fleet (Q) 84 93 95 95 97
Utilization - Total fleet 51.9% 42.2% 46.5% 46.1% 42.7%
Average vessels - Active fleet (Q) 55 54 58 58 54
Utilization - Active fleet 79.5% 72.8% 76.9% 75.2% 76.5%
Average day rates $ 9,050 9,501 9,619 9,943 11,061
Vessels commencing drydocks 3 3 2 7 2
Major repairs expense and deferred
drydocking and survey costs:
Major repairs expense $ 609 117 85 2,521 2,007
Cash paid for deferred $ 353 1,724 2,259 149 -
drydocking and survey costs
$ 962 1,841 2,344 2,670 2,007
=== ===== ===== ===== =====
Deferred drydocking and survey costs - $ 3,706 2,296 149 - -
beginning balance
Cash paid for deferred drydocking and $ 353 1,724 2,259 149 -
survey costs
Amortization of deferred drydocking and $ 495 323 112 - -
survey costs
Net vessel transfers in/out of the segment $ 17 (9) - - -
--- --- --- --- ---
Deferred drydocking and survey costs - $ 3,547 3,706 2,296 149 -
ending balance
Note (Q): Average leased vessels - West Africa - - - 3 3
fleet
Average leased vessels - West Africa active - - - 3 3
fleet
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
Three Months Ended
------------------
June 30, March 31, December 31, September 30, June 30,
(In thousands) 2018 2018 2017 2017 2017
------------- ---- ---- ---- ---- ----
Worldwide
---------
Vessel revenues $ 104,174 87,494 101,313 104,911 112,257
Vessel operating costs:
Crew costs $ 36,368 34,224 37,148 42,148 42,210
Routine repairs and maintenance 6,375 7,182 7,327 8,271 8,207
Major repairs 1,603 522 383 7,298 5,637
Insurance and loss reserves 2,191 (1,071) 2,946 2,504 3,124
Fuel, lube and supplies 8,181 9,012 9,400 9,841 9,428
Other 13,294 11,495 10,997 14,904 15,167
----- ------ ------ ------ ------ ------
Total vessel operating costs $ 68,012 61,364 68,201 84,966 83,773
Vessel operating margin ($) $ 36,162 26,130 33,112 19,945 28,484
Vessel operating margin (%) 34.7% 29.9% 32.7% 19.0% 25.4%
Vessel operating lease expense $ - - 91 1,747 5,542
Vessel depreciation $ 11,088 11,274 11,479 18,371 34,892
Amortization of deferred drydocking and survey $ 1,592 638 202 4 -
costs
Vessel operations general and administrative $ 16,613 16,867 19,946 17,093 18,002
expenses ($)
Vessel operations general and administrative 15.9% 19.3% 19.7% 16.3% 16.0%
expenses (%)
Vessel operating profit (loss) $ 6,869 (2,649) 1,394 (17,270) (29,952)
============================= === ===== ====== ===== ======= =======
Worldwide - Select operating statistics
---------------------------------------
Average vessels - Total fleet (R) 205 217 229 251 259
Utilization - Total fleet 55.5% 44.4% 47.8% 44.7% 44.0%
Average vessels - Active fleet (R) 141 138 140 145 150
Utilization - Active fleet 80.9% 69.8% 78.1% 77.3% 76.2%
Average day rates $ 10,047 10,093 10,056 10,162 10,842
Vessels commencing drydocks 14 19 10 16 9
Major repairs expense and deferred
drydocking and survey costs:
Major repairs expense $ 1,603 522 383 7,298 5,637
Cash paid for deferred $ 4,534 8,860 3,022 392 -
drydocking and survey costs
$ 6,137 9,382 3,405 7,690 5,637
===== ===== ===== ===== =====
Deferred drydocking and survey costs - $ 11,430 3,208 388 - -
beginning balance
Cash paid for deferred drydocking and $ 4,534 8,860 3,022 392 -
survey costs
Amortization of deferred drydocking and $ 1,592 638 202 4 -
survey costs
Deferred drydocking and survey costs - $ 14,372 11,430 3,208 388 -
ending balance
Note (R): Average leased vessels - Worldwide - - - 15 16
fleet
Average leased vessels - Worldwide active - - - 5 6
fleet
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
Three Months Ended
------------------
June 30, March 31, December 31, September 30, June 30,
(In thousands) 2018 2018 2017 2017 2017
------------- ---- ---- ---- ---- ----
Consolidated EBITDA (S) (T) (U) (V) (W) (X) $ 16,162 (9,905) 13,255 (2,760) 6,085
Restructuring-related professional services costs - - (2,031) (23,494) (11,874)
Asset impairments (1,215) (6,186) (16,777) (21,325) (163,423)
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 (7,547) (7,599) (7,769) (5,814) (10,605)
Income tax benefit (expense) (5,797) (3,321) 2,706 (3,216) (295)
Depreciation (11,192) (11,380) (11,993) (19,298) (36,287)
Amortization of deferred drydocking and survey (1,593) (638) (202) (4) -
costs
Net loss $ (11,182) (39,029) (23,199) (1,138,026) (524,410)
======== === ======= ======= ======= ========== ========
Three Months Ended
------------------
June 30, March 31, December 31, September 30, June 30,
(In thousands) 2018 2018 2017 2017 2017
------------- ---- ---- ---- ---- ----
Consolidated EBITDA (S) (T) (U) (V) (W) (X) $ 16,162 (9,905) 13,255 (2,760) 6,085
Restructuring-related professional service costs - - (2,031) (23,494) (11,874)
Sale leaseback redelivery costs - - (388) (1,244) -
Cash paid for interest (7,982) (8,152) (8,164) (1,203) (433)
Cash paid for taxes (3,654) (6,429) (3,262) (2,521) (3,611)
Cash paid for deferred drydocking costs (4,534) (8,860) (3,022) (392) -
Change in net working capital, excluding cash 7,466 8,649 (4,874) 18,585 (9,856)
Equity in net (earnings) losses of unconsol. (390) 15,439 (825) (1,574) (4,101)
companies (V)
Stock-based compensation expense 3,183 2,956 2,558 2,554 326
Gain on asset disposition (1,338) (1,919) (6,612) (376) (3,189)
Changes in other, net 14,054 2,237 (4,372) (3,608) 3,706
Net cash provided (used) in operating activities $ 22,967 (5,984) (17,737) (16,033) (22,947)
================================================ === ====== ====== ======= ======= =======
Note (S): 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 (T): Consolidated EBITDA for the three months ended June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017 and June 30, 2017 includes non-cash, stock-based compensation expense of $3,183, $2,956, $2,558, $2,554 and $326, respectively.
Note (U): Consolidated EBITDA for the three months ended June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017 and June 30, 2017 includes vessel operating lease expense of $0, $0, $91, $1,747 and $5,542, respectively.
Note (V): Consolidated EBITDA for the three months ended June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017 and June 30, 2017 includes foreign exchange losses of $(1,002), $(348), $(349), $(2,082) and $(1,157), respectively.
Note (W): Consolidated EBITDA and equity in net (earnings) losses of unconsol. companies for the three months ended June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017 and June 30, 2017 includes foreign exchange gains (losses) of $(5,767), $(14,823), $(74), $758 and $3,480, respectively.
Note (X): Consolidated EBITDA for the three months ended June 30, 2018 includes professional services costs related to the proposed combination with GulfMark of $1,547.
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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SOURCE Tidewater Inc.
