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NEW ORLEANS--(BUSINESS WIRE)-- Tidewater Inc. (NYSE: TDW) announced today second quarter net earnings for the period ended September 30, 2009, of $98.2 million, or $1.90 per common share, on revenues of $295.5 million. Included in net earnings for the September 30, 2009 quarter is a $34.3 million, or $0.66 per common share, tax benefit resulting from a favorable resolution of tax litigation. For the same quarter last year, net earnings were $95.4 million, or $1.85 per common share, on revenues of $346.8 million. The immediately preceding quarter ended June 30, 2009, had net earnings of $44.5 million, or $0.86 per common share, on revenues of $ 326.6 million. Included in net earnings for the June 30, 2009 quarter was a non-cash charge totaling $48.6 million ($47.7 million after tax, or $0.93 per common share) related to the company's Venezuelan operations. As a result of the seizure of vessels and certain other assets during the June quarter in Venezuela pursuant to a May 2009 Venezuelan law and the continued nonpayment of outstanding receivables from Petroleos de Venezuela, S.A. (PDVSA) and an affiliate of PDVSA, the company recorded in the June 2009 quarter a $3.8 million charge equal to the net book value of the assets seized and a $44.8 million provision to fully reserve accounts receivable due from PDVSA-related entities.
As previously announced, Tidewater will hold a conference call to discuss September quarterly earnings on Thursday, October 29, 2009, at 10:00 a.m. CDT, promptly following the Company's release of quarterly earnings. Investors and interested parties may listen to the teleconference via telephone by calling 1-888-388-7493 if calling from the U.S. or Canada (1-706-679-8348 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. CDT on October 29, 2009, and will continue until 11:59 p.m. CDT on October 31, 2009. To hear the replay, call 1-800-642-1687 (1-706-645-9291 if calling from outside the U.S.). The conference call ID number is 35253766.
A simultaneous webcast of the conference call will be accessible online at the Tidewater Inc. website, www.tdw.com. The online replay will be available until November 29, 2009.
Tidewater Inc. owns 398 vessels, the world's largest fleet of vessels serving the global offshore energy industry.
Note: all per-share amounts are stated on a diluted basis.
TIDEWATER INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except share and per share data)
Quarter Ended Six Months Ended
September 30, September 30,
2009 2008 2009 2008
Revenues:
Vessel revenues $ 294,563 344,637 604,999 673,008
Other marine revenues 961 2,192 17,134 13,875
295,524 346,829 622,133 686,883
Costs and expenses:
Vessel operating costs 157,526 175,371 311,177 352,099
Costs of other marine 882 1,315 15,582 11,744
revenues
Depreciation and 32,260 30,657 63,909 61,278
amortization
General and 37,686 35,315 72,074 70,423
administrative
Provision for 517 --- 49,070 ---
Venezuelan operations
Gain on asset (5,374 ) (5,851 ) (17,912 ) (16,238 )
dispositions, net
223,497 236,807 493,900 479,306
Operating income 72,027 110,022 128,233 207,577
Other income
(expenses):
Foreign exchange (2,252 ) 2,487 (4,838 ) 1,297
(loss) gain
Equity in net earnings
of unconsolidated 5,557 3,798 10,972 7,994
companies
Interest income and 502 1,425 3,670 3,324
other, net
Interest and other (450 ) (108 ) (527 ) (428 )
debt costs
3,357 7,602 9,277 12,187
Earnings before income 75,384 117,624 137,510 219,764
taxes
Income tax (benefit) (22,801 ) 22,193 (5,157 ) 39,557
expense
Net earnings $ 98,185 95,431 142,667 180,207
Basic earnings per $ 1.91 1.86 2.78 3.51
common share
Diluted earnings per $ 1.90 1.85 2.77 3.49
common share
Weighted average
common shares 51,371,295 51,246,848 51,366,826 51,394,460
outstanding
Incremental common
shares from stock 234,171 239,236 216,718 267,346
options
Adjusted weighted 51,605,466 51,486,084 51,583,544 51,661,806
average common shares
Cash dividends
declared per common $ 0.25 0.25 0.50 0.50
share
TIDEWATER INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and par value data)
September 30, March 31,
ASSETS 2009 2009
Current assets:
Cash and cash equivalents $ 295,655 250,793
Trade and other receivables, net 333,303 328,566
Marine operating supplies 43,331 48,727
Other current assets 13,181 6,365
Total current assets 685,470 634,451
Investments in, at equity, and advances to 33,878 37,221
unconsolidated companies
Properties and equipment:
Vessels and related equipment 3,263,720 3,238,674
Other properties and equipment 81,975 81,689
3,345,695 3,320,363
Less accumulated depreciation and amortization 1,255,635 1,307,038
Net properties and equipment 2,090,060 2,013,325
Goodwill 328,754 328,754
Other assets 95,055 60,053
Total assets $ 3,233,217 3,073,804
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 25,000 ---
Accounts payable 51,637 51,530
Accrued expenses 118,922 111,153
Accrued property and liability losses 5,767 5,521
Other current liabilities 44,925 35,146
Total current liabilities 246,251 203,350
Long-term debt 275,000 300,000
Deferred income taxes 205,920 201,200
Accrued property and liability losses 14,470 8,035
Other liabilities and deferred credits 122,882 116,541
Commitment and contingencies
Stockholders' equity:
Common stock of $.10 par value, 125,000,000 shares
authorized, issued 51,707,721 shares at September and 5,170 5,169
51,696,245 shares at March
Other stockholders' equity 2,363,524 2,239,509
Total stockholders' equity 2,368,694 2,244,678
Total liabilities and stockholders' equity $ 3,233,217 3,073,804
TIDEWATER INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Six Months Ended
September 30,
2009 2008
Operating activities:
Net earnings $ 142,667 180,207
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization 63,909 61,278
Provision (benefit) for deferred income taxes (14,215 ) (4,890 )
Reversal of liabilities for uncertain tax positions (34,284 ) ---
Gain on asset dispositions, net (17,912 ) (16,238 )
Provision for Venezuelan operations 49,070 ---
Equity in earnings of unconsolidated companies, net of 3,343 (1,574 )
dividends
Compensation expense - stock-based 4,936 6,152
Excess tax benefits on stock options exercised (194 ) (1,438 )
Changes in assets and liabilities, net:
Trade and other receivables (41,329 ) (25,723 )
Marine operating supplies 5,396 (8,315 )
Other current assets (6,816 ) (6,644 )
Accounts payable 107 (8,599 )
Accrued expenses 6,448 (502 )
Accrued property and liability losses 246 (187 )
Other current liabilities 8,694 19,143
Other liabilities and deferred credits (4,589 ) 1,311
Other, net (644 ) 721
Net cash provided by operating activities 164,833 194,702
Cash flows from investing activities:
Proceeds from sales of assets 23,216 20,638
Proceeds from sales/leaseback of assets 101,755 ---
Additions to properties and equipment (212,532 ) (259,845 )
Other --- 312
Net cash used in investing activities (87,561 ) (238,895 )
Cash flows from financing activities:
Principal payments on capitalized lease obligations --- (10,059 )
Proceeds from exercise of stock options 962 6,548
Cash dividends (25,859 ) (25,753 )
Stock repurchases --- (53,634 )
Excess tax benefits on stock options exercised 194 1,438
Debt issuance costs (7,707 ) ---
Net cash used in financing activities (32,410 ) (81,460 )
Net change in cash and cash equivalents 44,862 (125,653 )
Cash and cash equivalents at beginning of period 250,793 270,205
Cash and cash equivalents at end of period $ 295,655 144,552
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest $ 7,163 6,970
Income taxes $ 29,568 29,833
The company's revenues and operating expenses and its related percentage of vessel revenues for
the quarters and the six-month periods ended September 30, 2009 and 2008 and for the quarter
ended June 30, 2009, were as follows:
Quarter
Quarter Ended Six Months Ended Ended
September 30, September 30, June 30,
(In 2009 % 2008 % 2009 % 2008 % 2009 %
thousands)
Vessel
revenues:
International $ 271,898 92 % 304,635 88 % 557,886 92 % 592,904 88 % 285,988 92 %
United States 22,665 8 % 40,002 12 % 47,113 8 % 80,104 12 % 24,448 8 %
Vessel 294,563 100 % 344,637 100 % 604,999 100 % 673,008 100 % 310,436 100 %
revenues
Vessel
operating
costs:
Crew costs $ 78,737 27 % 92,086 27 % 161,489 27 % 185,238 28 % 82,752 27 %
Repair and 31,452 11 % 32,702 9 % 57,086 9 % 68,550 10 % 25,634 8 %
maintenance
Insurance and 3,383 1 % 5,608 2 % 8,059 1 % 11,081 2 % 4,676 2 %
loss reserves
Fuel, lube 15,213 5 % 18,609 5 % 28,055 5 % 33,775 5 % 12,842 4 %
and supplies
Vessel
operating 4,321 1 % 1,749 1 % 6,070 1 % 3,498 1 % 1,749 1 %
leases
Other 24,420 8 % 24,617 7 % 50,418 8 % 49,957 7 % 25,998 8 %
Vessel
operating 157,526 53 % 175,371 51 % 311,177 51 % 352,099 52 % 153,651 49 %
costs
Vessel
operating $ 137,037 47 % 169,266 49 % 293,822 49 % 320,909 48 % 156,785 51 %
margin (A)
Note (A): The following table reconciles vessel operating margin as presented above to
operating income for the quarters and the six-month periods ended September 30, 2009 and 2008
and for the quarter ended June 30, 2009:
Quarter
Quarter Ended Six Months Ended Ended
September 30, September 30, June 30,
(In thousands) 2009 2008 2009 2008 2009
Vessel operating margin $ 137,037 169,266 293,822 320,909 156,785
Other marine services 961 2,192 17,134 13,875 16,173
revenues
Costs of other marine (882 ) (1,315 ) (15,582 ) (11,744 ) (14,700 )
revenues
Depreciation and (32,260 ) (30,657 ) (63,909 ) (61,278 ) (31,649 )
amortization
General and (37,686 ) (35,315 ) (72,074 ) (70,423 ) (34,388 )
administrative
Provision for (517 ) --- (49,070 ) --- (48,553 )
Venezuelan operations
Gain on asset 5,374 5,851 17,912 16,238 12,538
dispositions, net
Operating income $ 72,027 110,022 128,233 207,577 56,206
The company's operating income and other components of earnings before income taxes and its related percentage
of total revenues for the quarters and the six-month periods ended September 30, 2009 and 2008 and for the
quarter ended June 30, 2009, were as follows:
Quarter
Quarter Ended Six Months Ended Ended
September 30, September 30, June 30,
(In thousands) 2009 % 2008 % 2009 % 2008 % 2009 %
Vessel
operating
profit:
International $ 78,590 27 % 104,335 30 % 128,482 21 % 192,517 28 % 49,892 15 %
United States 1,214 <1 % 9,956 3 % 3,843 1 % 18,489 3 % 2,629 1 %
79,804 27 % 114,291 33 % 132,325 21 % 211,006 31 % 52,521 16 %
Corporate (13,042 ) (4 %) (10,821 ) (3 %) (22,943 ) (4 %) (21,393 ) (3 %) (9,901 ) (3 %)
expenses
Gain on asset
dispositions, 5,374 2 % 5,851 2 % 17,912 3 % 16,238 2 % 12,538 4 %
net
Other marine (109 ) (<1 %) 701 <1 % 939 <1 % 1,726 <1 % 1,048 <1 %
services
Operating 72,027 24 % 110,022 32 % 128,233 21 % 207,577 30 % 56,206 17 %
income
Foreign
exchange (2,252 ) (1 %) 2,487 1 % (4,838 ) (1 %) 1,297 <1 % (2,586 ) (1 %)
(loss) gain
Equity in net
earnings of 5,557 2 % 3,798 1 % 10,972 2 % 7,994 1 % 5,415 2 %
unconsolidated
companies
Interest
income and 502 <1 % 1,425 <1 % 3,670 1 % 3,324 <1 % 3,168 1 %
other, net
Interest and
other debt (450 ) (<1 %) (108 ) (<1 %) (527 ) (<1 %) (428 ) (<1 %) (77 ) (<1 %)
costs
Earnings
before income $ 75,384 26 % 117,624 34 % 137,510 22 % 219,764 32 % 62,126 19 %
taxes
The company's revenues, vessel utilization percentages and average day rates
by vessel class and in total for the quarters and the six-month periods ended
September 30, 2009 and 2008 and the quarter ended June 30, 2009, were as
follows:
Quarter
Quarter Ended Six Months Ended Ended
September 30, September 30, June 30,
2009 2008 2009 2008 2009
REVENUES BY VESSEL CLASS (In
thousands):
International-based fleet:
Deepwater vessels $ 71,015 67,642 137,413 125,926 66,398
Towing-supply/supply 169,152 193,415 352,048 378,374 182,896
Crew/utility 22,393 26,709 47,963 54,078 25,570
Offshore tugs 9,338 14,993 19,895 30,819 10,557
Other --- 1,876 567 3,707 567
Total $ 271,898 304,635 557,886 592,904 285,988
United States-based fleet:
Deepwater vessels $ 14,714 16,099 28,011 33,031 13,297
Towing-supply/supply 7,342 18,644 16,857 36,319 9,515
Crew/utility 609 5,259 2,245 10,754 1,636
Total $ 22,665 40,002 47,113 80,104 24,448
Worldwide fleet:
Deepwater vessels $ 85,729 83,741 165,424 158,957 79,695
Towing-supply/supply 176,494 212,059 368,905 414,693 192,411
Crew/utility 23,002 31,968 50,208 64,832 27,206
Offshore tugs 9,338 14,993 19,895 30,819 10,557
Other --- 1,876 567 3,707 567
Total $ 294,563 344,637 604,999 673,008 310,436
UTILIZATION:
International-based fleet:
Deepwater vessels 79.1 % 85.8 78.4 84.7 77.6
Towing-supply/supply 71.1 75.7 72.6 76.5 74.1
Crew/utility 71.3 79.5 73.5 82.8 75.7
Offshore tugs 60.4 60.4 57.1 56.7 54.2
Other --- 59.0 79.2 48.8 79.2
Total 71.3 % 75.8 72.3 76.2 73.2
United States-based fleet:
Deepwater vessels 76.7 % 98.0 84.3 96.3 92.4
Towing-supply/supply 32.2 48.0 35.8 48.9 39.4
Crew/utility 18.8 75.5 32.8 76.4 45.4
Total 37.7 % 61.4 43.4 62.2 49.0
Worldwide fleet:
Deepwater vessels 78.8 % 88.0 79.3 87.0 79.9
Towing-supply/supply 66.8 72.2 68.6 72.9 70.3
Crew/utility 66.4 78.9 69.6 81.8 72.6
Offshore tugs 60.4 60.4 57.1 56.7 54.2
Other --- 59.0 79.2 48.8 79.2
Total 67.8 % 74.0 69.3 74.4 70.7
AVERAGE VESSEL DAY RATES:
International-based fleet:
Deepwater vessels $ 24,839 26,831 25,520 25,820 26,287
Towing-supply/supply 12,428 12,375 12,475 12,015 12,518
Crew/utility 4,935 5,184 5,085 5,071 5,224
Offshore tugs 7,059 8,302 7,406 8,614 7,744
Other --- 10,597 9,679 10,233 9,679
Total $ 12,177 12,048 12,186 11,631 12,194
United States-based fleet:
Deepwater vessels $ 29,784 25,233 26,834 24,862 24,178
Towing-supply/supply 9,623 12,867 9,873 12,234 10,071
Crew/utility 5,032 6,017 5,010 6,015 4,997
Total $ 16,456 13,510 14,726 13,164 13,418
Worldwide fleet:
Deepwater vessels $ 25,568 26,517 25,734 25,615 25,910
Towing-supply/supply 12,280 12,416 12,326 12,034 12,396
Crew/utility 4,938 5,305 5,082 5,206 5,210
Offshore tugs 7,059 8,302 7,406 8,614 7,744
Other --- 10,597 9,679 10,233 9,679
Total $ 12,426 12,201 12,352 11,795 12,282
The average day rates and utilization percentages for the company's new vessels
(defined as vessels acquired or constructed since calendar year 2000 as part of
its new build and acquisition program) and its older, more traditional vessels
for the quarters and the six-month periods ended September 30, 2009 and 2008
and for the quarter ended June 30, 2009, were as follows:
Quarter
Quarter Ended Six Months Ended Ended
September 30, September 30, June 30,
2009 2008 2009 2008 2009
AVERAGE VESSEL DAY RATES:
International-based fleet:
New vessels $ 16,160 17,090 16,301 16,676 16,452
Traditional vessels 8,193 9,163 8,531 8,879 8,819
Total International-based fleet $ 12,177 12,048 12,186 11,631 12,194
United States-based fleet:
New vessels $ 21,955 14,732 19,560 14,687 17,896
Traditional vessels 12,874 12,386 11,309 11,697 10,055
Total U.S.-based fleet $ 16,456 13,510 14,726 13,164 13,418
Worldwide fleet:
New vessels $ 16,429 16,774 16,490 16,393 16,554
Traditional vessels 8,518 9,444 8,730 9,121 8,910
Total Worldwide Fleet $ 12,426 12,201 12,352 11,795 12,282
UTILIZATION:
International-based fleet:
New vessels 86.8 % 91.0 86.6 91.0 86.5
Traditional vessels 60.5 69.2 63.0 70.0 65.3
Total International-based fleet 71.3 % 75.8 72.3 76.2 73.2
United States-based fleet:
New vessels 49.2 % 82.7 58.1 83.3 66.5
Traditional vessels 32.7 49.6 36.8 50.0 41.0
Total U.S.-based fleet 37.7 % 61.4 43.4 62.2 49.0
Worldwide fleet:
New vessels 83.8 % 89.8 84.2 89.8 84.7
Traditional vessels 57.2 66.9 60.0 67.7 62.6
Total Worldwide Fleet 67.8 % 74.0 69.3 74.4 70.7
The company's average number of vessels by class and geographic distribution
for the quarters and the six-month periods ended September 30, 2009 and 2008
and for the quarter ended June 30, 2009, were as follows:
Quarter
Quarter Ended Six Months Ended Ended
September 30, September 30, June 30,
2009 2008 2009 2008 2009
International-based fleet:
Deepwater vessels 39 32 38 32 35
Towing-supply/supply 208 224 212 225 217
Crew/utility 69 70 70 70 71
Offshore tugs 24 33 26 34 28
Other --- 3 --- 4 1
Total 340 362 346 365 352
United States-based fleet:
Deepwater vessels 7 7 7 7 7
Towing-supply/supply 26 33 26 33 26
Crew/utility 7 13 7 13 8
Total 40 53 40 53 41
Owned or chartered vessels included 380 415 386 418 393
in marine revenues (B)
Vessels withdrawn from service 8 16 9 18 9
Joint-venture and other 10 14 10 14 10
Total 398 445 405 450 412
Note (B): Included in total owned or chartered vessels at September 30, 2009
and 2008 and at June 30, 2009, were 70, 47 and 66 vessels, respectively, that
were stacked by the company. These vessels were considered to be in service
and are included in the calculation of the company's utilization statistics.
The table below summarizes the various vessel commitments by vessel class and
type as of September 30, 2009:
International Built U.S. Built
Number Expended Number Expended
of Total Through of Total Through
Vessel class and Vessels Cost 9/30/09 Vessels Cost 9/30/09
type
(In thousands) (In thousands)
Deepwater vessels:
Anchor handling 2 $ 60,829 $ 30,925 --- --- ---
towing supply
Platform supply 16 $ 478,916 $ 145,029 3 $ 95,785 $ 51,306
vessels (C)
Towing-supply/supply
vessels:
Anchor handling 11 $ 187,144 $ 61,598 --- --- ---
towing supply
Platform supply 3 $ 37,349 $ 24,306 --- --- ---
vessels
Crewboats and
offshore tugs:
Crewboats 2 $ 18,576 $ 14,394 --- --- ---
Offshore tugs 1 $ 14,105 $ 11,277 --- --- ---
Totals 35 $ 796,919 $ 287,529 3 $ 95,785 $ 51,306
Note (C): The international built deepwater platform supply vessel count
includes one multipurpose platform supply vessel.
The table below summarizes by vessel class and vessel type the number of vessels
expected to be delivered by quarter of the various vessel commitments as
discussed above along with the expected quarterly cash outlay:
Quarter Period Ended
Vessel class and 12/09 03/10 06/10 09/10 12/10 Thereafter
type
Deepwater vessels:
Anchor handling --- --- 2 --- --- ---
towing supply
Platform supply 4 2 (D) --- --- 1 12
vessels
Towing-supply/supply
vessels:
Anchor handling 1 1 1 --- 2 6
towing supply
Platform supply 2 1 --- --- --- ---
vessels
Crewboats and
offshore tugs:
Crewboats --- 1 1 --- --- ---
Offshore tugs 1 --- --- --- --- ---
Totals 8 5 4 --- 3 18
(In thousands)
Expected quarterly $ 125,188 102,142 52,695 31,150 44,276 198,418 (E)
cash outlay
Note (D): The deepwater platform supply vessel count in the March 2010 quarter
includes one multipurpose platform supply vessel.
Note (E): The $198,418 of 'Thereafter' vessel construction obligations is
expected to be paid out as follows: $40,376 in the remaining quarter of fiscal
2011, $146,320 during fiscal 2012, and $11,722 during fiscal 2013.
Source: Tidewater Inc.
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