Nov 13, 2018   SOURCE: BusinessWire

Tidewater Reports Results For The Three Months Ended September 30, 2018

Tidewater Inc. (NYSE:TDW) announced today a net loss for the three months ended September 30, 2018, of $30.9 million, or $1.16 per common share, on revenues of $99.2 million.

As more fully explained in the company's Form 10-Q for the quarter ended September 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 $30.9 million ($1.16 per common share) net loss for the three months ending September 30, 2018 were the following:

  • $16.9 million ($0.63 per common share) in non-cash Asset impairments that resulted from impairment reviews undertaken during the three months ended September 30, 2018.
  • $3.2 million ($0.12 per common share) in general and administrative expenses related to the proposed combination with GulfMark during the three months ended September 30, 2018.

Consolidated earnings (loss) before interest, taxes, depreciation and amortization (EBITDA) for the three months ended September 30, 2018, was $7.9 million, which excludes $16.9 million of Asset impairments, but includes $3.8 million of stock-based compensation expense and $3.2 million of costs related to the proposed combination with GulfMark. (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 third quarter results reflect a market that is continuing to show signs of improvement. Trends in tendering, requests for quotes and customer dialogue are all positive, but we do not expect to see material improvements in activity or average day rates until the second half of 2019 or later. In short, the offshore market is moving in the right direction, but we think the pace of improvement will be gradual and the path toward a broad-based industry recovery will likely include a number of turns, twists and possible setbacks. For the just-completed September quarter, market dynamics generally fell in line with our expectations, with lower vessel operating margin reflecting higher than anticipated maintenance costs and rate pressure in several regions. Utilization of our active fleet, while also down from last quarter, remained higher than what we experienced earlier in the year, further indicating that we are continuing to work our way out of a market trough. We are pleased to maintain positive EBITDA and positive cash flow from operations this quarter, as well as year to date, reflecting our commitment to achieving these and other financial targets. Assuming favorable outcomes to stockholder votes, we expect to complete our previously announced combination with GulfMark on November 15 and our team’s near-term efforts will be focused on executing our integration plan, with the objective of achieving targeted cost and operational synergies as efficiently and effectively as possible. We continue to believe that the combination of Tidewater and GulfMark creates clear and compelling value for stakeholders of both companies.”

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 September 30, 2018 were 26,815,991, 3,512,416 and 30,328,407, respectively.

Tidewater will hold a conference call to discuss results for the three months ended September 30, 2018 on Tuesday, November 13, 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 November 13, 2018, and will continue until 11:59 p.m. Central Time on November 15, 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 47697841.

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 December 13, 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 involves 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 most 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.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)

(Unaudited)

(In thousands, except share and per share data)

Successor   Predecessor  
  Period from Period from
Three Months August 1, 2017 July 1, 2017
Ended through through
   

September 30,
2018

   

September 30,
2017

 

July 31,
2017

 
Revenues:    
Vessel revenues $ 97,011 70,571 34,340
Other operating revenues     2,181       3,729     1,923  
      99,192       74,300     36,263  
Costs and expenses:
Vessel operating costs 65,237 52,301 32,665
Costs of other operating revenues 1,681 2,273 763
General and administrative 25,546 16,246 8,773
Vessel operating leases — 1,124 623
Depreciation and amortization 13,390 8,142 11,160
Loss (gain) on asset dispositions, net 1,571 (4 ) (372 )
Asset impairments     16,853       —     21,325  
      124,278       80,082     74,937  
Operating loss (25,086 ) (5,782 ) (38,674 )
Other income (expenses):
Foreign exchange gain (loss) 1 (58 ) (2,024 )
Equity in net earnings (losses) of unconsolidated companies 56 1,305 269
Interest income and other, net 2,709 873 704
Reorganization items — (1,880 ) (1,083,729 )
Interest and other debt costs, net     (7,585 )     (5,240 )   (574 )
      (4,819 )     (5,000 )   (1,085,354 )
Loss before income taxes (29,905 ) (10,782 ) (1,124,028 )
Income tax expense     1,278       4,745     (1,529 )
Net loss $ (31,183 ) (15,527 ) (1,122,499 )
Less: Net income (loss) attributable to noncontrolling interests     (287 )     166     (24 )
Net loss attributable to Tidewater Inc.   $ (30,896 )     (15,693 )   (1,122,475 )
Basic loss per common share   $ (1.16 )     (0.81 )   (23.82 )
Diluted loss per common share   $ (1.16 )     (0.81 )   (23.82 )
Weighted average common shares outstanding 26,614,507 19,389,031 47,121,407
Dilutive effect of stock options and restricted stock     —       —     —  
Adjusted weighted average common shares     26,614,507       19,389,031     47,121,407  
 
Note (A): The company did not incur any restructuring-related professional services costs during the quarter ended September 30, 2018 (Successor), but did incur professional services costs related to the proposed combination with GulfMark during the quarter ended September 30, 2018 of $3.2 million. General and administrative expenses for the quarter ended September 30, 2018 (Successor), the period from August 1, 2017 through September 30, 2017 (Successor) and the period from July 1, 2017 through July 31, 2017 (Predecessor), included stock-based compensation of $3.8 million, $1.2 million and $1.4 million, respectively.
 
Note (B): Common shares and new creditor warrants and the sum of common shares and New Creditor Warrants outstanding at September 30, 2018 (Successor) were 26,815,991, 3,512,416 and 30,328,407, respectively.
 
     
TIDEWATER INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)

(Unaudited)

(In thousands, except share and per share data)

Successor   Predecessor  
  Period from Period from
Nine Months August 1, 2017 January 1, 2017
Ended through through
   

September 30,
2018

   

September 30,
2017

 

July 31,
2017

 
Revenues:    
Vessel revenues $ 288,679 70,571 303,501
Other operating revenues     7,607       3,729     8,617  
      296,286       74,300     312,118  
Costs and expenses:
Vessel operating costs 194,613 52,301 197,283
Costs of other operating revenues 4,797 2,273 5,037
General and administrative 73,536 16,246 83,559
Vessel operating leases — 1,124 14,607
Depreciation and amortization 38,192 8,142 85,039
Gain on asset dispositions, net (1,686 ) (4 ) (9,625 )
Asset impairments     24,254       —     249,606  
      333,706       80,082     625,506  
Operating loss (37,420 ) (5,782 ) (313,388 )
Other income (expenses):
Foreign exchange loss (1,349 ) (58 ) (2,516 )
Equity in net earnings (losses) of unconsolidated companies (14,993 ) 1,305 7,627
Interest income and other, net 5,495 873 3,974
Reorganization items — (1,880 ) (1,396,905 )
Interest and other debt costs, net     (22,731 )     (5,240 )   (32,188 )
      (33,578 )     (5,000 )   (1,420,008 )
Loss before income taxes (70,998 ) (10,782 ) (1,733,396 )
Income tax expense     10,396       4,745     483  
Net loss $ (81,394 ) (15,527 ) (1,733,879 )
Less: Net income (loss) attributable to noncontrolling interests     (386 )     166     7,884  
Net loss attributable to Tidewater Inc.   $ (81,008 )     (15,693 )   (1,741,763 )
Basic loss per common share   $ (3.23 )     (0.81 )   (36.98 )
Diluted loss per common share   $ (3.23 )     (0.81 )   (36.98 )
Weighted average common shares outstanding 25,073,284 19,389,031 47,104,117
Dilutive effect of stock options and restricted stock     —       —     —  
Adjusted weighted average common shares     25,073,284       19,389,031     47,104,117  
 
Note (C): The company did not incur any restructuring-related professional services costs during the nine months ended September 30, 2018 (Successor), but did incur professional services costs related to the proposed combination with GulfMark during the nine months ended September 30, 2018 of $4.7 million. Restructuring-related professional services costs included in general and administrative expenses for the period from January 1, 2017 through July 31, 2017 (Predecessor), were $23.4 million. General and administrative expenses for the nine months ended September 30, 2018 (Successor), the period from August 1, 2017 through September 30, 2017 (Successor) and the period from July 1, 2017 through July 31, 2017 (Predecessor), included stock-based compensation of $10 million, $1.2 million and $0.8 million, respectively.
 
Note (D): Common shares and new creditor warrants and the sum of common shares and New Creditor Warrants outstanding at September 30, 2018 (Successor) were 26,815,991, 3,512,416 and 30,328,407, respectively.
 
 
TIDEWATER INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and par value data)

Successor  
September 30,   December 31,
ASSETS   2018     2017  
Current assets:  
Cash and cash equivalents $ 461,088 432,035
Restricted cash 7,466 21,300
Trade and other receivables, net 88,013 114,184
Due from affiliates 174,349 230,315
Marine operating supplies 27,591 28,220
Other current assets     9,880       19,130  
Total current assets     768,387       845,184  
Investments in, at equity, and advances to unconsolidated companies 1,129 29,216
Net properties and equipment 776,640 837,520
Deferred drydocking and survey costs 16,053 3,208
Other assets     28,700       31,052  
Total assets   $ 1,590,909       1,746,180  
 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 30,571 38,497
Accrued expenses 46,060 54,806
Due to affiliates 48,064 99,448
Accrued property and liability losses 2,447 2,585
Current portion of long-term debt 7,671 5,103
Other current liabilities     18,894       19,693  
Total current liabilities     153,707       220,132  
Long-term debt 435,301 443,057
Accrued property and liability losses 4,212 2,471
Other liabilities 53,781 58,576
 
Commitments and Contingencies
 
Equity:

Successor Common stock of $0.001 par value, 125,000,000 shares authorized, 26,815,991 and 22,115,916 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively

27 22
Additional paid-in capital 1,063,603 1,059,120
Retained deficit (120,274 ) (39,266 )
Accumulated other comprehensive loss     (403 )     (147 )
Total stockholders’ equity 942,953 1,019,729
Noncontrolling interests     955       2,215  
Total equity 943,908 1,021,944
Total liabilities and equity   $ 1,590,909       1,746,180  
 
     
TIDEWATER INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)

(In thousands)

Successor   Predecessor  
  Period from Period from
Three Months August 1, 2017 July 1, 2017
Ended through through
    September 30, 2018     September 30, 2017   July 31, 2017  
Net loss $ (31,183 )   (15,527 )   (1,122,499 )
Other comprehensive income:

Unrealized gains (losses) on available for sale securities, net of tax of $0, $0 and $0

— 82 77

Change in loss on derivative contract, net of tax of $0, $0 and $823

— — —

Change in supplemental executive retirement plan liability, net of tax of $0, $0 and $0

— — (536 )

Change in pension plan minimum liability, net of tax of $0, $0 and $0

— — (594 )

Change in other benefit plan minimum liability, net of tax of $0, $0 and $0

    —       —     (1,468 )
Total comprehensive loss   $ (31,183 )  

 

(15,445 )

 

(1,125,020 )
 
     
TIDEWATER INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)

(In thousands)

Successor   Predecessor  
  Period from Period from
Nine Months August 1, 2017 January 1, 2017
Ended through through
    September 30, 2018     September 30, 2017   July 31, 2017  
Net loss $ (81,394 )   (15,527 )   (1,733,879 )
Other comprehensive income:

Unrealized gains (losses) on available for sale securities, net of tax of $0, $0 and $61

(256 ) 82 67

Change in loss on derivative contract, net of tax of $0, $0 and $823

— — 1,317

Change in supplemental executive retirement plan liability, net of tax of $0, $0 and ($927)

— — (2,257 )

Change in pension plan minimum liability, net of tax of $0, $0 and $215

— — (195 )

Change in other benefit plan minimum liability, net of tax of $0, $0 and ($2,046)

    —       —     (5,267 )
Total comprehensive loss   $ (81,650 )  

 

(15,445 )

 

(1,740,214 )
 
     
TIDEWATER INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

Successor   Predecessor  
  Period from Period from
Nine Months August 1, 2017 January 1, 2017
Ended through through
   

September 30,
2018

   

September 30,
2017

 

July 31,
2017

 
Operating activities:    
Net loss $ (81,394 )

 

(15,527 ) (1,733,879 )

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Reorganization items — — 1,368,882
Depreciation and amortization 33,949 8,138 85,039
Amortization of deferred drydocking and survey costs 4,243 4 —
Amortization of debt premium and discounts (1,371 ) (281 ) —
Provision for deferred income taxes — — (7,743 )
Gain on asset dispositions, net (1,686 ) (4 ) (9,625 )
Asset impairments 24,254 — 249,606

Changes in investments in, at equity, and advances to unconsolidated companies

28,087 (1,044 ) (9,314 )
Compensation expense - stock-based 9,967 1,173 819
Excess tax liability on stock option activity — — 4,927
Changes in assets and liabilities, net:
Trade and other receivables (10,744 ) (3,775 ) 57,337
Changes in due to/from related parties, net 28,290 (3,920 ) 26,262
Marine operating supplies (1,411 ) 1,005 (320 )
Other current assets 9,032 5,714 (8,298 )
Accounts payable 1,719 (317 ) (10,715 )
Accrued expenses (10,719 ) (10,555 ) 24,339
Accrued property and liability losses (138 ) 13 (813 )
Other current liabilities 5,802 3,753 (7,131 )
Other liabilities (232 ) (847 ) 4,768
Cash paid for deferred drydocking and survey costs (17,088 ) (392 ) —
Other, net     1,670       (947 )   14,422  
Net cash provided by (used in) operating activities     22,230       (17,809 )   48,563  
Cash flows from investing activities:
Proceeds from sales of assets 16,499 4,875 4,636
Additions to properties and equipment (9,116 ) (589 ) (10,620 )
Proceeds related to novated vessel construction contract     —       —     5,272  
Net cash provided by (used in) investing activities     7,383       4,286     (712 )
Cash flows from financing activities:
Principal payment on long-term debt (4,020 ) — (7,856 )
Payments to General Unsecured Creditors (8,377 ) (87,366 ) (122,806 )
Other     (1,997 )     1     (6,127 )
Net cash used in financing activities     (14,394 )     (87,365 )   (136,789 )
Net change in cash, cash equivalents and restricted cash 15,219 (100,888 ) (88,938 )
Cash, cash equivalents and restricted cash at beginning of period     453,335       560,866     649,804  
Cash, cash equivalents and restricted cash at end of period   $ 468,554    

 

459,978     560,866  
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest, net of amounts capitalized $ 24,218

 

59 9,795
Income taxes   $ 13,679    

 

1,392     6,907  
 
                   
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 — — (81,008 ) (256 ) (386 ) (81,650 )
Issuance of common stock 5 (2 ) — — — 3
Amortization of restricted stock units — 5,611 — — — 5,611
Acquisition of noncontrolling interest     —       (1,126 )     —       —       (874 )     (2,000 )
Balance at September 30, 2018 (Successor)   $ 27       1,063,603       (120,274 )     (403 )     955       943,908  
                                                 
Balance at December 31, 2016 (Predecessor) $ 4,707 171,018 1,570,027 (6,446 ) 8,258 1,747,564
Total comprehensive loss — — (1,741,764 ) (6,333 ) 7,883 (1,740,214 )
Stock option expense — 659 — — — 659
Cancellation/forfeiture or restricted stock units — 1,254 157 — — 1,411
Amortization of restricted stock units 5 (6,064 ) — — — (6,059 )
Cash paid to noncontrolling interests     —       —       —       —       (1,200 )     (1,200 )
Balance at July 31, 2017 (Predecessor)   $ 4,712       166,867       (171,580 )     (12,779 )     14,941       2,161  
Cancellation of Predecessor equity     (4,712 )     (166,867 )     171,580       12,779       (13,266 )     (486 )
Balance at July 31, 2017 (Predecessor)   $ —       —       —       —       1,675       1,675  
                                                 
Issuance of Successor common stock and warrants $ 18 1,055,391 — — — 1,055,409
 
Balance at August 1, 2017 (Successor) $ 18 1,055,391 — — 1,675 1,057,084
Total comprehensive loss — — (15,693 ) 82 166 (15,445 )
Issuance of common stock 3 (1 ) — — — 2
Amortization of restricted stock units — 1,173 — — — 1,173
Cash paid to noncontrolling interests     —       —       —       —       —       —  
Balance at September 30, 2017 (Successor)   $ 21       1,056,563       (15,693 )     82       1,841       1,042,814  
 
     

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

 
Successor   Predecessor  
      Period from Period from
Three Months August 1, 2017 July 1, 2017
Ended through through
September 30, 2018     September 30, 2017   July 31, 2017  
(In thousands)           %             %           %  
Vessel revenues:                
Americas $ 28,039 29 % 17,449 25 % 8,961 26 %
Middle East/Asia Pacific 19,927 20 % 16,669 24 % 8,547 25 %
Europe/Mediterranean Sea 12,566 13 % 8,860 12 % 4,435 13 %
West Africa     36,479       38 %     27,593       39 %   12,397       36 %
Total vessel revenues   $ 97,011       100 %     70,571       100 %   34,340       100 %
Vessel operating costs:
Crew costs $ 37,615 39 % 27,705 39 % 14,443 42 %
Repair and maintenance 8,634 9 % 6,373 9 % 9,196 27 %
Insurance and loss reserves (1,706 ) (2 %) 1,679 2 % 825 2 %
Fuel, lube and supplies 7,980 8 % 6,990 10 % 2,851 8 %
Other     12,714       13 %     9,554       14 %   5,350       16 %
Total vessel operating costs 65,237 67 % 52,301 74 % 32,665 95 %

Vessel operating margin (F)

  $ 31,774       33 %     18,270       26 %   1,675       5 %
 
 
Successor   Predecessor  
Period from Period from
Nine Months August 1, 2017 January 1, 2017
Ended through through
September 30, 2018     September 30, 2017   July 31, 2017  
(In thousands)           %             %           %  
Vessel revenues:

Americas (E)

$ 86,721 30 % 17,449 25 % 121,380 40 %
Middle East/Asia Pacific 60,721 21 % 16,669 24 % 62,991 21 %
Europe/Mediterranean Sea 35,546 12 % 8,860 12 % 25,631 8 %
West Africa     105,691       37 %     27,593       39 %   93,499       31 %

Total vessel revenues (E)

  $ 288,679       100 %     70,571       100 %   303,501       100 %
Vessel operating costs:
Crew costs $ 108,207 37 % 27,705 39 % 98,482 32 %
Repair and maintenance 24,316 8 % 6,373 9 % 40,112 13 %
Insurance and loss reserves (586 ) (<1 %) 1,679 2 % 2,183 1 %
Fuel, lube and supplies 25,174 9 % 6,990 10 % 21,558 7 %
Other     37,502       13 %     9,554       14 %   34,948       12 %
Total vessel operating costs 194,613 67 % 52,301 74 % 197,283 65 %

Vessel operating margin (F)

  $ 94,066       33 %     18,270       26 %   106,218       35 %
 
Note (E): Included in Americas and total vessel revenues for the period January 1, 2017 through July 31, 2017 (Predecessor), is $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract.
 
Note (F): 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  
  Period from Period from
Three Months August 1, 2017 July 1, 2017
Ended through through
(In thousands)   September 30, 2018     September 30, 2017   July 31, 2017  
Vessel operating margin $ 31,774   18,270   1,675
General and administrative expenses - vessel operations (16,121 ) (11,214 ) (5,879 )
Vessel operating leases — (1,124 ) (623 )
Depreciation and amortization - vessel operations     (13,286 )     (7,663 )   (10,712 )
Vessel operating profit (loss)   $ 2,367    

 

(1,731 )   (15,539 )
 
 
Successor   Predecessor  
Period from Period from
Nine Months August 1, 2017 January 1, 2017
Ended through through
(In thousands)   September 30, 2018     September 30, 2017   July 31, 2017  
Vessel operating margin $ 94,066

 

18,270 106,218
General and administrative expenses - vessel operations (49,600 ) (11,214 ) (43,326 )
Vessel operating leases — (1,124 ) (14,607 )
Depreciation and amortization - vessel operations     (37,877 )     (7,663 )   (81,776 )
Vessel operating profit (loss)   $ 6,589    

 

(1,731 )   (33,491 )
 
     

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

 
Successor   Predecessor  
      Period from Period from
Three Months August 1, 2017 July 1, 2017
Ended through through
September 30, 2018     September 30, 2017   July 31, 2017  
(In thousands)           %             %           %  
Other operating revenues $ 2,181 100 %   3,729     100 %   1,923     100 %
Costs of other operating revenues (1,681 ) (77 )% (2,273 ) (61 )% (763 ) (40 )%
General and administrative expenses - other operating activities (10 ) (<1 %) (235 ) (6 )% (54 ) (3 )%
Depreciation and amortization - other operating activities     (5 )     (<1 %)     (412 )     (11 )%   (285 )     (14 )%

Total other operating profit

  $ 485       22 %     809       22 %   821       43 %
 
 
Successor   Predecessor  
Period from Period from
Nine Months August 1, 2017 January 1, 2017
Ended through through
September 30, 2018     September 30, 2017   July 31, 2017  
(In thousands)           %             %           %  

Other operating revenues

$ 7,607 100 % 3,729 100 % 8,617 100 %
Costs of other operating revenues (4,797 ) (63 %) (2,273 ) (61 %) (5,037 ) (58 %)
General and administrative expenses - other operating activities (27 ) (<1 %) (235 ) (6 %) (934 ) (11 %)
Depreciation and amortization - other operating activities     (16 )     (<1 %)     (412 )     (11 %)   (1,995 )     (23 %)

Total other operating profit

  $ 2,767       36 %     809       22 %   651       8 %
 
     

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

 
Successor   Predecessor  
      Period from Period from
Three Months August 1, 2017 July 1, 2017
Ended through through
September 30, 2018     September 30, 2017   July 31, 2017  
(In thousands)           %             %           %  
Vessel operating profit (loss):            
Americas $ 1,212 1 % (2,651 ) (4 %) (6,850 ) (19 %)
Middle East/Asia Pacific (701 ) (1 %) 944 1 % (118 ) (<1 %)
Europe/Mediterranean Sea (2,056 ) (2 %) (711 ) (<1 %) (2,517 ) (7 %)
West Africa     3,912       4 %     687       <1 %   (6,054 )     (17 %)
2,367 2 % (1,731 ) (3 %) (15,539 ) (43 %)
Other operating profit     485       1 %     809       1 %   821       2 %
2,852 3 % (922 ) (2 %) (14,718 ) (41 %)
 
Corporate general and administrative expenses (G) (9,415 ) 10 % (4,797 ) (7 %) (2,840 ) (8 %)
Corporate depreciation     (99 )     (<1 %)     (67 )     (<1 %)   (163 )     (<1 %)
Corporate expenses (9,514 ) (10 %) (4,864 ) (7 %) (3,003 ) (8 %)
 
Gain (loss) on asset dispositions, net (1,571 ) (2 %) 4 <1 % 372 1 %
Asset impairments     (16,853 )     (17 %)     —       —     (21,325 )     (59 %)
Operating loss   $ (25,086 )     (26 %)     (5,782 )     (9 %)   (38,674 )     (107 %)
Foreign exchange gain (loss) 1 <1 % (58 ) (<1 %) (2,024 ) (5 %)
Equity in net earnings (losses) of unconsolidated companies 56 (<1 %) 1,305 2 % 269 1 %
Interest income and other, net 2,709 3 % 873 1 % 704 2 %
Reorganization items — — (1,880 ) (2 %) (1,083,729 ) (2989 %)
Interest and other debt costs, net     (7,585 )     (8 %)     (5,240 )     (7 %)   (574 )     (2 %)
Loss before income taxes   $ (29,905 )     (31 %)     (10,782 )     (15 %)   (1,124,028 )     (3100 %)
 
Note (G): The company did not incur any restructuring-related professional services costs during the quarter ended September 30, 2018 (Successor), but did incur professional services costs related to the proposed combination with GulfMark during the quarter ended September 30, 2018 of $3.2 million. General and administrative expenses for the quarter ended September 30, 2018 (Successor), the period from August 1, 2017 through September 30, 2017 (Successor) and the period from July 1, 2017 through July 31, 2017 (Predecessor), included stock-based compensation of $3.8 million, $1.2 million and $1.4 million, respectively.
 
     
Successor   Predecessor  
      Period from Period from
Nine Months August 1, 2017 January 1, 2017
Ended through through
September 30, 2018     September 30, 2017   July 31, 2017  
(In thousands)           %             %           %  
Vessel operating profit (loss):            
Americas (H) $ 11,804 4 % (2,651 ) (4 %) 8,069 3 %
Middle East/Asia Pacific (2,329 ) (1 %) 944 1 % (7,597 ) (2 %)
Europe/Mediterranean Sea (6,753 ) (2 %) (711 ) (<1 %) (19,783 ) (6 %)
West Africa     3,867       1 %     687       <1 %   (14,180 )     (5 %)
6,589 2 % (1,731 ) (3 %) (33,491 ) (10 %)
Other operating profit     2,767       1 %     809       1 %   651       <1 %
9,356 3 % (922 ) (2 %) (32,840 ) (10 %)
 
Corporate general and administrative expenses (I) (23,909 ) (8 %) (4,797 ) (7 %) (39,299 ) (13 %)
Corporate depreciation     (299 )     (<1 %)     (67 )     (<1 %)   (1,268 )     (<1 %)
Corporate expenses (24,208 ) (8 %) (4,864 ) (7 %) (40,567 ) (13 %)
 
Gain on asset dispositions, net 1,686 1 % 4 <1 % 9,625 3 %
Asset impairments     (24,254 )     (9 %)     —       —     (249,606 )     (80 %)
Operating loss   $ (37,420 )     (13 %)     (5,782 )     (9 %)   (313,388 )     (100 %)
Foreign exchange loss (1,349 ) (<1 %) (58 ) (<1 %) (2,516 ) (<1 %)
Equity in net earnings (losses) of unconsolidated companies (14,993 ) (5 %) 1,305 2 % 7,627 2 %
Interest income and other, net 5,495 2 % 873 1 % 3,974 1 %
Reorganization items — — (1,880 ) (2 %) (1,396,905 ) (448 %)
Interest and other debt costs, net     (22,731 )     (8 %)     (5,240 )     (7 %)   (32,188 )     (10 %)
Loss before income taxes   $ (70,998 )     (24 %)     (10,782 )     (15 %)   (1,733,396 )     (555 %)
 
Note (H): Americas segment vessel operating profit for the period from January 1, 2017 through July 31, 2017 (Predecessor), includes $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract.
 
Note (I): The company did not incur any restructuring-related professional services costs during the nine months ended September 30, 2018 (Successor), but did incur professional services costs related the proposed combination with GulfMark during the nine months ended September 30, 2018 of $4.7 million. Restructuring-related professional services costs included in general and administrative expenses for the period from January 1, 2017 through July 31, 2017 (Predecessor), were $23.4 million. General and administrative expenses for the nine months ended September 30, 2018 (Successor), the period from August 1, 2017 through September 30, 2017 (Successor) and the period from July 1, 2017 through July 31, 2017 (Predecessor), included stock-based compensation of $10 million, $1.2 million and $0.8 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 quarters ended September 30, 2018, 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  
             
September 30, June 30, March 31, December 31, September 30,
      2018     2018     2018     2017     2017  
Revenues:
Vessel revenues $ 97,011 104,174 87,494 101,313 104,911
Other operating revenues       2,181       1,427       3,999       3,140       5,652  
        99,192       105,601       91,493       104,453       110,563  
Costs and expenses:
Vessel operating costs 65,237 68,012 61,364 68,201 84,966
Costs of other operating revenues 1,681 642 2,474 1,519 3,036
General and administrative (J) 25,546 24,425 23,565 30,373 25,019
Vessel operating leases — — — 91 1,747
Depreciation and amortization 13,390 12,785 12,017 12,195 19,302
Gain on asset dispositions, net 1,571 (1,338 ) (1,919 ) (6,612 ) (376 )
Asset impairments       16,853       1,215       6,186       16,777       21,325  
        124,278       105,741       103,687       122,544       155,019  
Operating loss (25,086 ) (140 ) (12,194 ) (18,091 ) (44,456 )
Other income (expenses):
Foreign exchange loss 1 (1,002 ) (348 ) (349 ) (2,082 )
Equity in net earnings (losses) of unconsolidated companies 56 390 (15,439 ) 825 1,574
Interest income and other 2,709 2,914 (128 ) 1,898 1,577
Reorganization items (J) — — — (2,419 ) (1,085,609 )
Interest and other debt costs       (7,585 )     (7,547 )     (7,599 )     (7,769 )     (5,814 )
        (4,819 )     (5,245 )     (23,514 )     (7,814 )     (1,090,354 )
Loss before income taxes (29,905 ) (5,385 ) (35,708 ) (25,905 ) (1,134,810 )
Income tax (benefit) expense       1,278       5,797       3,321       (2,706 )     3,216  
Net loss $ (31,183 ) (11,182 ) (39,029 ) (23,199 ) (1,138,026 )
Less: Net income (loss) attributable to noncontrolling interests       (287 )     (242 )     143       374       142  
Net loss attributable to Tidewater Inc.   $   (30,896 )     (10,940 )     (39,172 )     (23,573 )     (1,138,168 )
Basic loss per common share   $   (1.16 )     (0.44 )     (1.67 )     (1.02 )     —  
Diluted loss per common share   $   (1.16 )     (0.44 )     (1.67 )     (1.02 )     —  
Weighted average common shares outstanding (K) 26,614,507 24,654,220 23,424,943 23,137,909 —
Dilutive effect of stock options and restricted stock       —       —       —       —       —  
Adjusted weighted average common shares       26,614,507       24,654,220       23,424,943       23,137,909       —  
                                           
Vessel operating margin   $   31,774       36,162       26,130       33,112       19,945  
 

Note (J):  Restructuring and merger-related items:

Professional services costs included in general and administrative expenses related to the proposed combination with GulfMark $ 3,151 1,547 — — —
Restructuring-related professional services costs included in reorganization items — — — 2,031 23,494
Restructuring-related sale leaseback vessel redelivery costs included in reorganization items       —       —       —       388       1,244  
Total   $   3,151       1,547       —       2,419       24,738  
 
Note (K): Weighted average shares outstanding for the quarters ended September 30, 2018, June 30, 2018, March 31, 2018 and December 31, 2017 include 300,646, 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 September 30, 2018 were 26,815,991, 3,512,416 and 30,328,407, respectively. 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)

                                     
September 30, June 30, March 31, December 31, September 30,
ASSETS     2018     2018     2018     2017     2017  
Current assets:
Cash and cash equivalents $ 461,088 459,286 442,472 432,035 459,978
Restricted cash 7,466 5,213 2,847 21,300 —
Trade and other receivables, net (L) 88,013 96,630 115,754 114,184 120,271
Due from affiliates 174,349 197,059 207,919 230,315 245,056
Marine operating supplies 27,591 28,930 28,896 28,220 31,083
Other current assets       9,880       10,213       18,181       19,130       14,813  
Total current assets       768,387       797,331       816,069       845,184       871,201  
Investments in, at equity, and advances to unconsolidated companies 1,129 1,335 13,503 29,216 25,729
Net properties and equipment 776,640 803,725 814,263 837,520 868,689
Deferred drydocking and survey costs 16,053 14,372 11,430 3,208 388
Other assets       28,700       26,779       30,783       31,052       46,845  
Total assets   $   1,590,909       1,643,542       1,686,048       1,746,180       1,812,852  
 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable (L) $ 30,571 30,561 45,781 38,497 39,439
Accrued expenses 46,060 49,312 56,408 54,806 61,115
Due to affiliates 48,064 62,353 78,135 99,448 112,642
Accrued property and liability losses 2,447 2,790 2,852 2,585 2,774
Current portion of long-term debt 7,671 6,290 5,215 5,103 5,174
Other current liabilities       18,894       17,815       8,826       19,693       38,041  
Total current liabilities       153,707       169,121       197,217       220,132       259,185  
Long-term debt 435,301 438,559 442,729 443,057 445,677
Accrued property and liability losses 4,212 2,651 2,561 2,471 2,607
Other liabilities and deferred credits 53,781 57,685 58,060 58,576 62,569
 
Commitments and Contingencies
 
Equity:
Common stock 27 26 24 22 21
Additional paid-in capital 1,063,603 1,064,039 1,061,983 1,059,120 1,056,563
Retained earnings (120,274 ) (89,378 ) (78,438 ) (39,266 ) (15,693 )
Accumulated other comprehensive income (loss)       (403 )     (403 )     (446 )     (147 )     82  
Total stockholders’ equity 942,953 974,284 983,123 1,019,729 1,040,973
Noncontrolling interests       955       1,242       2,358       2,215       1,841  
Total equity 943,908 975,526 985,481 1,021,944 1,042,814
Total liabilities and equity   $   1,590,909       1,643,542       1,686,048       1,746,180       1,812,852  
 
                                           
Supplemental Information
Due from related parties, net of due to related parties:
Sonatide (Angola) $ 102,512 106,084 129,784 130,867 132,414
DTDW (Nigeria)       23,773       28,622       25,184       23,708       20,423  
Total   $   126,285       134,706       154,968       154,575       152,837  
 
Note (L): Included in Trade and other receivables, net, for the quarters ended March 31, 2018, December 31, 2017 and September 31, 2017 are $37,761; $33,353 and $27,616, respectively, of amounts due from our DTDW (Nigeria) joint venture. Included in Accounts payable for the quarters ended March 31, 2018, December 31, 2017 and September 31, 2017 are $12,577; $9,645 and $7,193, respectively, of amounts due to our DTDW (Nigeria) joint venture.
 
       
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
         
Three Months Ended
September 30, June 30,     March 31,     December 31,     September 30,
      2018     2018     2018     2017     2017

VESSEL REVENUE BY VESSEL CLASS
(In thousands):

       
 

Americas fleet:

Deepwater $ 19,513 22,661 16,205 17,062 14,102
Towing-supply 6,417 7,560 6,846 8,263 9,319
Other       2,109       2,380       3,030       3,010       2,989
Total $ 28,039 32,601 26,081 28,335 26,410

Middle East/Asia Pacific fleet:

Deepwater $ 7,607 9,603 9,564 9,066 8,393
Towing-supply 12,156 12,783 8,824 14,110 16,823
Other       164       20       —       —       —

Total

$ 19,927 22,406 18,388 23,176 25,216

Europe/Mediterranean Sea fleet:

Deepwater $ 11,643 12,596 9,020 10,395 11,192
Towing-supply       923       761       603       641       2,102
Total $ 12,566 13,357 9,623 11,036 13,294

West Africa fleet:

Deepwater $ 15,101 14,314 13,938 14,358 13,978
Towing-supply 17,805 17,321 16,139 19,807 21,071
Other       3,573       4,175       3,325       4,601       4,942
Total $ 36,479 35,810 33,402 38,766 39,991

Worldwide fleet:

Deepwater $ 53,864 59,174 48,727 50,881 47,665
Towing-supply 37,301 38,425 32,412 42,821 49,315
Other       5,846       6,575       6,355       7,611       7,931
Total   $   97,011       104,174       87,494       101,313       104,911
 
                   
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
                                     
Three Months Ended  
September 30, June 30, March 31, December 31, September 30,
    2018     2018     2018     2017     2017  

AVERAGE NUMBER OF VESSELS:

 

Americas fleet:

Deepwater 26 25 26 31 39
Towing-supply 15 15 15 16 19
Other     6       6       6       6       8  
Total 47 46 47 53 66
Stacked vessels     (20 )     (19 )     (20 )     (27 )     (39 )
Active vessels     27       27       27       26       27  

Middle East/Asia Pacific fleet:

Deepwater 17 18 19 21 21
Towing-supply 32 35 37 39 43
Other     —       —       —       —       1  
Total 49 53 56 60 65
Stacked vessels     (9 )     (12 )     (15 )     (20 )     (25 )
Active vessels     40       41       41       40       40  

Europe/Mediterranean Sea fleet:

Deepwater 18 18 17 17 18
Towing-supply 4 4 4 4 6
Other     —       —       —       —       1  
Total 22 22 21 21 25
Stacked vessels     (4 )     (4 )     (5 )     (5 )     (5 )
Active vessels     18       18       16       16       20  

West Africa fleet:

Deepwater 27 26 27 27 25
Towing-supply 31 31 35 37 38
Other     25       27       31       31       32  
Total 83 84 93 95 95
Stacked vessels     (28 )     (29 )     (39 )     (37 )     (37 )
Active vessels     55       55       54       58       58  

Worldwide fleet:

Deepwater 88 87 89 96 103
Towing-supply 82 85 91 96 106
Other     31       33       37       37       42  
Total 201 205 217 229 251
Stacked vessels     (61 )     (64 )     (79 )     (89 )     (106 )
Active vessels     140       141       138       140       145  
 
Total active 140 141 138 140 145
Total stacked 61 64 79 89 106
Total joint venture and other vessels     7       8       8       8       8  
Total     208       213       225       237       259  
 
Note (M): Included in total owned or chartered vessels at September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and September 30, 2017, were 62, 66, 70, 89 and 91 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. Included in total joint venture and other at September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and September 30, 2017, were 2, 5, 4, 4 and 4 vessels, respectively, that were stacked by the company.
 
                           
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
                                     
Three Months Ended  
September 30, June 30, March 31, December 31, September 30,
    2018     2018     2018     2017     2017  

AVERAGE NUMBER OF LEASED VESSELS
INCLUDED IN VESSEL COUNTS ABOVE:

 

Americas fleet:

Deepwater — — — — 7
Towing-supply     —       —       —       —       3  
Total — — — — 10
Stacked vessels     —       —       —       —       (10 )
Active vessels     —       —       —       —       —  

Europe/Mediterranean Sea fleet:

Towing-supply     —       —       —       —       2  
Total — — — — 2
Stacked vessels     —       —       —       —       —  
Active vessels     —       —       —       —       2  

West Africa fleet:

Towing-supply     —       —       —       —       3  
Total — — — — 3
Stacked vessels     —       —       —       —       —  
Active vessels     —       —       —       —       3  

Worldwide fleet:

Deepwater — — — — 7
Towing-supply     —       —       —       —       8  
Total — — — — 15
Stacked vessels     —       —       —       —       (10 )
Active vessels     —       —       —       —       5  
                           
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
                                   
Three Months Ended
September 30, June 30, March 31, December 31, September 30,
    2018     2018     2018     2017     2017

AVAILABLE DAYS - TOTAL FLEET:

 

Americas fleet:

Deepwater 2,392 2,275 2,309 2,893 3,545
Towing-supply 1,422 1,399 1,350 1,441 1,773
Other     552       546       540       574       736
Total 4,366 4,220 4,199 4,908 6,054

Middle East/Asia Pacific fleet:

Deepwater 1,534 1,611 1,738 1,908 1,932
Towing-supply 2,950 3,203 3,348 3,604 3,980
Other     —       3       —       3       92
Total 4,484 4,817 5,086 5,515 6,004

Europe/Mediterranean Sea fleet:

Deepwater 1,649 1,638 1,527 1,588 1,649
Towing-supply 368 364 360 379 552
Other     —       —       —       —       136
Total 2,017 2,002 1,887 1,967 2,337

West Africa fleet:

Deepwater 2,491 2,393 2,470 2,484 2,347
Towing-supply 2,852 2,821 3,123 3,340 3,493
Other     2,297       2,417       2,745       2,852       2,885
Total 7,640 7,631 8,338 8,676 8,725

Worldwide fleet:

Deepwater 8,066 7,917 8,044 8,873 9,473
Towing-supply 7,592 7,787 8,181 8,764 9,798
Other     2,849       2,966       3,285       3,429       3,849
Total     18,507       18,670       19,510       21,066       23,120
 
                           
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
                                   
Three Months Ended
September 30, June 30, March 31, December 31, September 30,
    2018     2018     2018     2017     2017

OUT-OF-SERVICE - STACKED DAYS:

 

Americas fleet:

Deepwater 858 819 898 1,565 2,359
Towing-supply 736 728 720 705 889
Other     276       182       180       206       368
Total 1,870 1,729 1,798 2,476 3,616

Middle East/Asia Pacific fleet:

Deepwater 338 364 478 705 746
Towing-supply 508 780 873 1,089 1,435
Other     —       —       —       3       92
Total 846 1,144 1,351 1,797 2,273

Europe/Mediterranean Sea fleet:

Deepwater 170 91 167 276 276
Towing-supply 184 243 270 180 92
Other     —       —       —       —       136
Total 354 334 437 456 504

West Africa fleet:

Deepwater 552 590 744 671 644
Towing-supply 1,196 1,183 1,463 1,472 1,484
Other     799       878       1,305       1,295       1,246
Total 2,547 2,652 3,512 3,438 3,374

Worldwide fleet:

Deepwater 1,918 1,864 2,287 3,217 4,025
Towing-supply 2,624 2,934 3,326 3,446 3,900
Other     1,075       1,060       1,485       1,504       1,842
Total     5,617       5,859       7,098       8,167       9,767
 
             
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
                 
Three Months Ended
September 30, June 30, March 31,     December 31,     September 30,
    2018     2018     2018     2017     2017

AVAILABLE DAYS - ACTIVE FLEET:

     
 

Americas fleet:

Deepwater 1,534 1,456 1,411 1,328 1,186
Towing-supply 686 671 630 736 884
Other     276       364       360       368       368
Total 2,496 2,491 2,401 2,432 2,438

Middle East/Asia Pacific fleet:

Deepwater 1,196 1,247 1,260 1,203 1,186
Towing-supply 2,442 2,423 2,475 2,515 2,545
Other     —       3       —       —       —
Total 3,638 3,673 3,735 3,718 3,731

Europe/Mediterranean Sea fleet:

Deepwater 1,479 1,547 1,360 1,312 1,373
Towing-supply     184       121       90       199       460

Total

1,663 1,668 1,450 1,511 1,833

West Africa fleet:

Deepwater 1,939 1,803 1,726 1,813 1,703
Towing-supply 1,656 1,638 1,660 1,868 2,009
Other     1,498       1,539       1,440       1,557       1,639
Total 5,093 4,979 4,826 5,238 5,351

Worldwide fleet:

Deepwater 6,148 6,053 5,757 5,656 5,448
Towing-supply 4,968 4,853 4,855 5,318 5,898
Other     1,774       1,906       1,800       1,925       2,007
Total     12,890       12,811       12,412       12,899       13,353
 
Note (N): 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  
September 30, June 30, March 31, December 31, September 30,
    2018     2018     2018     2017     2017  

UTILIZATION - TOTAL FLEET:

 

Americas fleet:

Deepwater 50.6 % 54.8 % 42.2 % 32.2 % 20.5 %
Towing-supply 40.6 37.7 35.7 39.0 36.1
Other     41.2       48.3       61.9       60.8       45.3  
Total 46.1 % 48.3 % 42.7 % 37.6 % 28.1 %

Middle East/Asia Pacific fleet:

Deepwater 59.0 % 64.2 % 54.4 % 48.7 % 44.0 %
Towing-supply 64.2 60.2 40.0 57.7 57.1
Other    

—

      100.0      

—

      —       —  
Total 62.4 % 61.6 % 44.9 % 54.5 % 52.0 %

Europe/Mediterranean Sea fleet:

Deepwater 72.0 % 79.5 % 64.7 % 69.4 % 71.7 %
Towing-supply     44.3       29.0       25.0       24.1       53.8  
Total 67.0 % 70.3 % 57.1 % 60.7 % 63.3 %

West Africa fleet:

Deepwater 61.9 % 60.2 % 52.3 % 49.4 % 49.3 %
Towing-supply 48.0 47.0 39.0 45.7 45.2
Other     44.2       49.2       36.6       44.8       44.6  
Total 51.4 % 51.9 % 42.2 % 46.5 % 46.1 %

Worldwide fleet:

Deepwater 60.0 % 63.5 % 52.2 % 47.2 % 41.3 %
Towing-supply 52.7 49.9 38.3 48.6 48.9
Other     43.6       49.1       40.8       47.4       42.1  
Total     54.5 %     55.5 %     44.4 %     47.8 %     44.7 %
 
Note (O): Utilization Total Fleet equals Days Worked / Available Days Total Fleet.
 
                   
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
                                     
Three Months Ended  
September 30, June 30, March 31, December 31, September 30,
    2018     2018     2018     2017     2017  

UTILIZATION - ACTIVE FLEET:

 

Americas fleet:

Deepwater 78.8 % 85.7 % 69.1 % 70.2 % 61.2 %
Towing-supply 84.2 78.5 76.6 76.4 72.3
Other     82.3       72.4       92.9       94.8       90.6  
Total 80.7 % 81.8 % 74.6 % 75.8 % 69.7 %

Middle East/Asia Pacific fleet:

Deepwater 75.6 % 82.9 % 75.0 % 77.2 % 71.6 %
Towing-supply 77.5 79.6 54.1 82.7 89.4
Other     —       100.0       —       —       —  
Total 76.9 % 80.8 % 61.2 % 80.9 % 83.7 %

Europe/Mediterranean Sea fleet:

Deepwater 80.3 % 84.2 % 72.6 % 84.0 % 86.1 %
Towing-supply     88.7       87.4       100.0       45.8       64.6  
Total 81.2 % 84.4 % 74.3 % 79.0 % 80.7 %

West Africa fleet:

Deepwater 79.5 % 79.9 % 74.8 % 67.7 % 68.0 %
Towing-supply 82.6 81.0 73.4 81.7 78.6
Other     67.8       77.3       69.9       82.0       78.4  
Total 77.1 % 79.5 % 72.8 % 76.9 % 75.2 %

Worldwide fleet:

Deepwater 78.8 % 83.0 % 72.9 % 74.1 % 71.9 %
Towing-supply 80.5 80.1 64.5 80.1 81.2
Other     70.1       76.4       74.5       84.5       80.6  
Total     78.3 %     80.9 %     69.8 %     78.1 %     77.3 %
 
Note (P): Utilization Active Fleet equals Days Worked / Available Days - Active Fleet.
 
                           
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
                                   
Three Months Ended
September 30, June 30, March 31, December 31, September 30,
      2018     2018     2018     2017     2017

AVERAGE VESSEL DAY RATES:

 

Americas fleet:

Deepwater $ 16,138 18,162 16,626 18,301 19,429
Towing-supply 11,115 14,349 14,191 14,700 14,577
Other       9,281       9,029       9,061       8,628       8,968
Total $ 13,924 15,995 14,558 15,372 15,550

Middle East/Asia Pacific fleet:

Deepwater $ 8,411 9,287 10,122 9,762 9,883
Towing-supply 6,422 6,627 6,589 6,787 7,398
Other       —       6,122       —       —       —
Total $ 7,123 7,554 8,051 7,705 8,073

Europe/Mediterranean Sea fleet:

Deepwater $ 9,802 9,676 9,132 9,427 9,464
Towing-supply       5,658       7,195       6,695       7,035       7,077
Total $ 9,302 9,489 8,928 9,244 8,985

West Africa fleet:

Deepwater $ 9,793 9,940 10,795 11,702 12,069
Towing-supply 13,019 13,054 13,245 12,979 13,339
Other       3,515       3,508       3,306       3,602       3,854
Total $ 9,291 9,050 9,501 9,619 9,943

Worldwide fleet:

Deepwater $ 11,121 11,779 11,606 12,142 12,172
Towing-supply 9,323 9,882 10,355 10,056 10,295
Other       4,701       4,513       4,742       4,681       4,906
Total   $   9,616       10,047       10,093       10,056       10,162
 
                   
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
                                     
Three Months Ended  
September 30, June 30, March 31, December 31, September 30,
(In thousands)     2018     2018     2018     2017     2017  

Americas

Vessel revenues $ 28,039 32,601 26,081 28,335 26,410
 
Vessel operating costs:
Crew costs $ 12,169 11,158 9,093 11,190 12,652
Routine repairs and maintenance 2,017 1,471 1,917 2,203 2,210
Major repairs 554 58 (187 ) (144 ) 4,167
Insurance and loss reserves (488 ) 1,031 (551 ) 788 605
Fuel, lube and supplies 2,081 1,792 1,618 2,413 2,935
Other       1,787       2,790       406       1,321       2,307  
Total vessel operating costs $ 18,120 18,300 12,296 17,771 24,876
 
Vessel operating margin ($) $ 9,919 14,301 13,785 10,564 1,534
Vessel operating margin (%) 35.4 % 43.9 % 52.9 % 37.3 % 5.8 %
 
Vessel operating lease expense $ — — — — 62
Vessel depreciation $ 3,289 3,141 3,223 3,386 5,488
Amortization of deferred drydocking and survey costs $ 569 389 90 86 4
 
Vessel operations general and administrative expenses ($) $ 4,849 5,090 5,561 6,040 5,481
Vessel operations general and administrative expenses (%) 17.3 % 15.6 % 21.3 % 21.3 % 20.8 %
                                           
Vessel operating profit (loss)   $   1,212       5,681       4,911       1,052       (9,501 )
 

Americas - Select operating statistics

Average vessels - Total fleet (Q) 47 46 47 53 66
Utilization - Total fleet 46.1 % 48.3 % 42.7 % 37.6 % 28.1 %
 
Average vessels - Active fleet (Q) 27 27 27 26 27
Utilization - Active fleet 80.7 % 81.8 % 74.6 % 75.8 % 69.7 %
 
Average day rates $ 13,924 15,995 14,558 15,372 15,550
 
Vessels commencing drydocks 11 2 7 3 7
 
Major repairs expense and deferred drydocking and survey costs:
Major repairs expense $ 554 58 (187 ) (144 ) 4,167

Cash paid for deferred drydocking and survey costs

$   1,099       1,097       2,775       554       243  
$   1,653       1,155       2,588       410       4,410  
 
Deferred drydocking and survey costs - beginning balance $ 4,108 3,383 707 239 —
Cash paid for deferred drydocking and survey costs $ 1,099 1,097 2,775 554 243
Amortization of deferred drydocking and survey costs $ (569 ) (389 ) (90 ) (86 ) (4 )
Net vessel transfers in/out of the segment $   —       17       (9 )     —       —  
Deferred drydocking and survey costs - ending balance $   4,638       4,108       3,383       707       239  
 

Note (Q):  Average leased vessels - Americas fleet

— — — — 10
Average leased vessels - Americas active fleet — — — — —
 
                   
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
                                     
Three Months Ended  
September 30, June 30, March 31, December 31, September 30,
(In thousands)     2018     2018     2018     2017     2017  

Middle East/Asia Pacific

Vessel revenues $ 19,927 22,406 18,388 23,176 25,216
 
Vessel operating costs:
Crew costs $ 8,412 8,596 8,108 8,666 9,101
Routine repairs and maintenance 1,898 1,558 1,209 1,733 2,387
Major repairs (39 ) 36 254 442 320
Insurance and loss reserves (458 ) 383 (150 ) 771 626
Fuel, lube and supplies 1,394 2,221 2,339 2,653 1,725
Other       2,203       2,578       2,742       2,723       2,977  
Total vessel operating costs $ 13,410 15,372 14,502 16,988 17,136
 
Vessel operating margin ($) $ 6,517 7,034 3,886 6,188 8,080
Vessel operating margin (%) 32.7 % 31.4 % 21.1 % 26.7 % 32.0 %
 
Vessel operating lease expense $ — — — — —
Vessel depreciation $ 2,458 2,521 2,707 2,905 4,028
Amortization of deferred drydocking and survey costs $ 481 323 62 4 —
 
Vessel operations general and administrative expenses ($) $ 4,279 3,565 3,370 3,772 3,226
Vessel operations general and administrative expenses (%) 21.5 % 15.9 % 18.3 % 16.3 % 12.8 %
                                           
Vessel operating profit (loss)   $   (701 )     625       (2,253 )     (493 )     826  
 

Middle East/Asia Pacific - Select operating statistics

Average vessels - Total fleet 49 53 56 60 65
Utilization - Total fleet 62.4 % 61.6 % 44.9 % 54.5 % 52.0 %
 
Average vessels - Active fleet 40 41 41 40 40
Utilization - Active fleet 76.9 % 80.8 % 61.2 % 80.9 % 83.7 %
 
Average day rates $ 7,123 7,554 8,051 7,705 8,073
 
Vessels commencing drydocks 4 3 3 5 1
 
Major repairs expense and deferred drydocking and survey costs:
Major repairs expense $ (39 ) 36 254 442 320

Cash paid for deferred drydocking and survey costs

$   1,219       1,813       1,728       209       —  
$   1,180       1,849       1,982       651       320  
 
Deferred drydocking and survey costs - beginning balance $ 3,361 1,871 205 — —
Cash paid for deferred drydocking and survey costs $ 1,219 1,813 1,728 209 —
Amortization of deferred drydocking and survey costs $   (481 )     (323 )     (62 )     (4 )     —  
Deferred drydocking and survey costs - ending balance $   4,099       3,361       1,871       205       —  
 
                   
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
                                     
Three Months Ended  
September 30, June 30, March 31, December 31, September 30,
(In thousands)     2018     2018     2018     2017     2017  

Europe/Mediterranean Sea

Vessel revenues $ 12,566 13,357 9,623 11,036 13,294
 
Vessel operating costs:
Crew costs $ 5,642 5,777 4,991 5,147 6,460
Routine repairs and maintenance 1,645 1,083 1,240 1,145 1,430
Major repairs 192 900 338 — 290
Insurance and loss reserves 116 247 110 311 206
Fuel, lube and supplies 1,195 1,136 1,810 1,038 1,050
Other       1,838       1,459       1,606       1,466       1,754  
Total vessel operating costs $ 10,628 10,602 10,095 9,107 11,190
 
Vessel operating margin ($) $ 1,938 2,755 (472 ) 1,929 2,104
Vessel operating margin (%) 15.4 % 20.6 % -4.9 % 17.5 % 15.8 %
 
Vessel operating lease expense $ — — — — 670
Vessel depreciation $ 1,853 1,854 1,641 1,641 3,411
Amortization of deferred drydocking and survey costs $ 460 385 163 — —
 
Vessel operations general and administrative expenses ($) $ 1,681 1,658 1,278 1,073 1,251
Vessel operations general and administrative expenses (%) 13.4 % 12.4 % 13.3 % 9.7 % 9.4 %
                                           
Vessel operating loss   $   (2,056 )     (1,142 )     (3,554 )     (785 )     (3,228 )
 

Europe/Mediterranean Sea - Select operating statistics

Average vessels - Total fleet (R) 22 22 21 21 25
Utilization - Total fleet 67.0 % 70.3 % 57.1 % 60.7 % 63.3 %
 
Average vessels - Active fleet (R) 18 18 16 16 20
Utilization - Active fleet 81.2 % 84.4 % 74.3 % 79.0 % 80.7 %
 
Average day rates $ 9,302 9,489 8,928 9,244 8,985
 
Vessels commencing drydocks 2 6 6 — 1
 
Major repairs expense and deferred drydocking and survey costs:
Major repairs expense $ 192 900 338 — 290

Cash paid for deferred drydocking and survey costs

$   383       1,271       2,633       —       —  
$   575       2,171       2,971       —       290  
 
Deferred drydocking and survey costs - beginning balance $ 3,356 2,470 — — —

Cash paid for deferred drydocking and survey costs

$ 383 1,271 2,633 — —
Amortization of deferred drydocking and survey costs $   (460 )     (385 )     (163 )     —       —  
Deferred drydocking and survey costs - ending balance $   3,279       3,356       2,470       —       —  
 

Note (R):  Average leased vessels - Europe/Mediterranean Sea fleet

— — — — 2
Average leased vessels - Europe/Mediterranean Sea active fleet — — — — 2
 
                   
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
                                     
Three Months Ended  
September 30, June 30, March 31, December 31, September 30,
(In thousands)     2018     2018     2018     2017     2017  

West Africa

Vessel revenues $ 36,479 35,810 33,402 38,766 39,991
 
Vessel operating costs:
Crew costs $ 11,392 10,837 12,032 12,145 13,935
Routine repairs and maintenance 2,382 2,263 2,816 2,246 2,244
Major repairs (15 ) 609 117 85 2,521
Insurance and loss reserves (876 ) 530 (480 ) 1,076 1,067
Fuel, lube and supplies 3,310 3,032 3,245 3,296 4,131
Other       6,886       6,467       6,741       5,487       7,866  
Total vessel operating costs $ 23,079 23,738 24,471 24,335 31,764
 
Vessel operating margin ($) $ 13,400 12,072 8,931 14,431 8,227
Vessel operating margin (%) 36.7 % 33.7 % 26.7 % 37.2 % 20.6 %
 
Vessel operating lease expense $ — — — 91 1,015
Vessel depreciation $ 3,673 3,572 3,703 3,547 5,444
Amortization of deferred drydocking and survey costs $ 503 495 323 112 —
 
Vessel operations general and administrative expenses ($) $ 5,312 6,300 6,658 9,061 7,135
Vessel operations general and administrative expenses (%) 14.6 % 17.6 % 19.9 % 23.4 % 17.8 %
                                           
Vessel operating profit (loss)   $   3,912       1,705       (1,753 )     1,620       (5,367 )
 

West Africa - Select operating statistics

Average vessels - Total fleet (S) 83 84 93 95 95
Utilization - Total fleet 51.4 % 51.9 % 42.2 % 46.5 % 46.1 %
 
Average vessels - Active fleet (S) 55 55 54 58 58
Utilization - Active fleet 77.1 % 79.5 % 72.8 % 76.9 % 75.2 %
 
Average day rates $ 9,291 9,050 9,501 9,619 9,943
 
Vessels commencing drydocks 2 3 3 2 7
 
Major repairs expense and deferred drydocking and survey costs:
Major repairs expense $ (15 ) 609 117 85 2,521

Cash paid for deferred drydocking and survey costs

$ 993       353       1,724       2,259       149  
$   978       962       1,841       2,344       2,670  
 
Deferred drydocking and survey costs - beginning balance $ 3,547 3,706 2,296 149 —
Cash paid for deferred drydocking and survey costs $ 993 353 1,724 2,259 149
Amortization of deferred drydocking and survey costs $ (503 ) (495 ) (323 ) (112 ) —
Net vessel transfers in/out of the segment $   —       (17 )     9       —       —  
Deferred drydocking and survey costs - ending balance $   4,037       3,547       3,706       2,296       149  
 

Note (S):  Average leased vessels - West Africa fleet

— — — — 3
Average leased vessels - West Africa active fleet — — — — 3
 
                   
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
                                     
Three Months Ended  
September 30, June 30, March 31, December 31, September 30,
(In thousands)     2018     2018     2018     2017     2017  

Worldwide

Vessel revenues $ 97,011 104,174 87,494 101,313 104,911
 
Vessel operating costs:
Crew costs $ 37,615 36,368 34,224 37,148 42,148
Routine repairs and maintenance 7,942 6,375 7,182 7,327 8,271
Major repairs 692 1,603 522 383 7,298
Insurance and loss reserves (1,706 ) 2,191 (1,071 ) 2,946 2,504
Fuel, lube and supplies 7,980 8,181 9,012 9,400 9,841
Other       12,714       13,294       11,495       10,997       14,904  
Total vessel operating costs $ 65,237 68,012 61,364 68,201 84,966
 
Vessel operating margin ($) $ 31,774 36,162 26,130 33,112 19,945
Vessel operating margin (%) 32.8 % 34.7 % 29.9 % 32.7 % 19.0 %
 
Vessel operating lease expense $

—

—

— 91 1,747
Vessel depreciation $ 11,273 11,088 11,274 11,479 18,371
Amortization of deferred drydocking and survey costs $ 2,013 1,592 638 202 4
 
Vessel operations general and administrative expenses ($) $ 16,121 16,613 16,867 19,946 17,093
Vessel operations general and administrative expenses (%) 16.6 % 15.9 % 19.3 % 19.7 % 16.3 %
                                           
Vessel operating profit (loss)   $   2,367       6,869       (2,649 )     1,394       (17,270 )
 

Worldwide - Select operating statistics

Average vessels - Total fleet (T) 201 205 217 229 251
Utilization - Total fleet 54.5 % 55.5 % 44.4 % 47.8 % 44.7 %
 
Average vessels - Active fleet (T) 140 141 138 140 145
Utilization - Active fleet 78.3 % 80.9 % 69.8 % 78.1 % 77.3 %
 
Average day rates $ 9,616 10,047 10,093 10,056 10,162
 
Vessels commencing drydocks 19 14 19 10 16
 
Major repairs expense and deferred drydocking and survey costs:
Major repairs expense $ 692 1,603 522 383 7,298

Cash paid for deferred drydocking and survey costs

$   3,694       4,534       8,860       3,022       392  
$   4,386       6,137       9,382       3,405       7,690  
 
Deferred drydocking and survey costs - beginning balance $ 14,372 11,430 3,208 388 —
Cash paid for deferred drydocking and survey costs $ 3,694 4,534 8,860 3,022 392
Amortization of deferred drydocking and survey costs $   (2,013 )     (1,592 )     (638 )     (202 )     (4 )
Deferred drydocking and survey costs - ending balance $   16,053       14,372       11,430       3,208       388  
 

Note (T):  Average leased vessels - Worldwide fleet

— — — — 15
Average leased vessels - Worldwide active fleet — — — — 5
 
                   
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
                                     
Three Months Ended  
September 30, June 30, March 31, December 31, September 30,
(In thousands)     2018     2018     2018     2017     2017  
 
 
Consolidated EBITDA (U) (V) (W) (X) (Y) (Z) $

7,922

16,162 (9,905 ) 13,255 (2,760 )
 
Restructuring-related professional services costs

—

— — (2,031 ) (23,494 )
Asset impairments

(16,853

) (1,215 ) (6,186 ) (16,777 ) (21,325 )
Sale leaseback redelivery costs

—

— — (388 ) (1,244 )
Reorganization items (excluding professional services and sale leaseback redelivery costs)

—

— — — (1,060,871 )
Interest and other debt costs (7,585 ) (7,547 ) (7,599 ) (7,769 ) (5,814 )
Income tax benefit (expense) (1,278 ) (5,797 ) (3,321 ) 2,706 (3,216 )
Depreciation (11,377 ) (11,192 ) (11,380 ) (11,993 ) (19,298 )
Amortization of deferred drydocking and survey costs (2,012 ) (1,593 ) (638 ) (202 ) (4 )
                                           
Net loss   $   (31,183 )     (11,182 )     (39,029 )     (23,199 )     (1,138,026 )
 
                                           
                                     
Three Months Ended  
September 30, June 30, March 31, December 31, September 30,
(In thousands)     2018     2018     2018     2017     2017  
 
 
Consolidated EBITDA (U) (V) (W) (X) (Y) (Z) $

7,922

16,162 (9,905 ) 13,255 (2,760 )
 
Restructuring-related professional service costs — — — (2,031 ) (23,494 )
Sale leaseback redelivery costs — — — (388 ) (1,244 )
Cash paid for interest (8,084 ) (7,982 ) (8,152 ) (8,164 ) (1,203 )
Cash paid for taxes (3,596 ) (3,654 ) (6,429 ) (3,262 ) (2,521 )
Cash paid for deferred drydocking costs (3,694 ) (4,534 ) (8,860 ) (3,022 ) (392 )
Change in net working capital, excluding cash 8,678 7,466 8,649 (4,874 ) 18,585

Equity in net (earnings) losses of unconsolidated companies (V)

(56 ) (390 ) 15,439 (825 ) (1,574 )
Stock-based compensation expense 3,828 3,183 2,956 2,558 2,554
Gain on asset disposition 1,571 (1,338 ) (1,919 ) (6,612 ) (376 )
Changes in other, net

(1,322

) 14,054 2,237 (4,372 ) (3,608 )
                                           
Net cash provided (used) in operating activities   $   5,247       22,967       (5,984 )     (17,737 )     (16,033 )

 

Note (U): 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 (V): Consolidated EBITDA for the three months ended September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and September 30, 2017 includes non-cash, stock-based compensation expense of $3,828, $3,183, $2,956, $2,558 and $2,554, respectively.
 
Note (W): Consolidated EBITDA for the three months ended September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and September 30, 2017 includes vessel operating lease expense of $0, $0, $0, $91 and $1,747, respectively.
 
Note (X): Consolidated EBITDA for the three months ended September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and September 30, 2017 includes foreign exchange gains (losses) of $1, $(1,002), $(348), $(349) and $(2,082), respectively.
 
Note (Y): Consolidated EBITDA and equity in net (earnings) losses of unconsolidated companies for the three months ended September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and September 30, 2017 includes foreign exchange gains (losses) of $0, $(5,767), $(14,823), $(74) and $758, respectively.
 
Note (Z): Consolidated EBITDA for the three months ended September 30, 2018 and June 30, 2018 includes professional services costs related to the proposed combination with GulfMark of $3,151 and $1,547, 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.