Tidewater Reports Third Quarter Results For Fiscal 2013

Tidewater Reports Third Quarter Results For Fiscal 2013

NEW ORLEANS--(BUSINESS WIRE)-- Tidewater Inc. (NYS: TDW) announced today third quarter earnings for the period ended December 31, 2012, of $29.9 million, or $0.61 per share, on revenues of $309.5 million. For the same quarter last year, net earnings of $34.1 million was reported, or $0.67 per share, on revenues of $272.1 million. The immediately preceding quarter ended September 30, 2012, had net earnings of $41.4 million, or $0.83 per share, on revenues of $311.9 million, which included approximately $7.4 million of vessel revenue associated with retroactive rate increases agreed to during the September 2012 quarter, but related to the period from January 1, 2012 through June 30, 2012.

Included in the current fiscal quarter's general and administrative expenses is a $5.2 million settlement loss charge ($3.4 million after tax, or $0.07 per share) related to the lump sum supplemental executive retirement plan distribution made in the December 2012 quarter to the Company's former President and Chief Executive Officer who retired earlier in the year. The settlement loss is the result of the recognition of heretofore unrecognized actuarial losses that were being amortized over time to pension expense. As a result of the December 2012 lump sum distribution, a portion of the previously unrecognized actuarial losses was required to be recognized in earnings in the current quarter in accordance with ASC 715. Included in the prior fiscal year third quarter's net earnings is an $8.4 million, or $0.16 per share, reversal of income tax liabilities originally established for uncertain tax positions as a result of the expiration of various statutes of limitations.


As previously announced, Tidewater will hold a conference call to discuss December quarterly earnings and also their near-term outlook with respect to the Company's future financial and operational performance on Friday, February 1, 2013, at 10:00 a.m. Central time. 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. Central time on February 1, 2013, and will continue until 11:59 p.m. Central time on February 3, 2013. To hear the replay, call 1-855-859-2056 (1-404-537-3406 if calling from outside the U.S.). The conference call ID number is 86377851.

A simultaneous webcast of the conference call will be accessible online at the Tidewater Inc. website, (http://www.tdw.com). The online replay will be available until March 1, 2013.

The conference call will contain forward-looking statements in addition to statements of historical fact. The actual achievement of any forecasted results or the unfolding of future economic or business developments in a way anticipated or projected by the Company involve numerous risks and uncertainties that may cause the Company's actual performance to be materially different from that stated or implied in the forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the oilfield service industry and other factors discussed within the "Risk Factors" section of Tidewater's recent Forms 10-Q and 10-K.

Tidewater is the leading provider of larger Offshore Service Vessels (OSVs) to the global energy industry.

Note: all per-share amounts are stated on a diluted basis.

Financial information is displayed on the next page.

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

(In thousands, except share and per share data)

Quarter Ended

Nine Months Ended

December 31,

December 31,

2012

2011

2012

2011

Revenues:

Vessel revenues

$

305,043

270,486

904,959

772,213

Other marine revenues

4,423

1,625

10,873

5,399

309,466

272,111

915,832

777,612

Costs and expenses:

Vessel operating costs

180,895

155,838

523,778

469,430

Costs of other marine revenues

4,176

1,938

9,284

5,200

Depreciation and amortization

37,181

35,215

109,012

102,771

Goodwill impairment

---

---

---

30,932

General and administrative

46,339

40,425

128,870

115,779

Gain on asset dispositions, net

(99

)

(2,496

)

(2,770

)

(13,671

)

268,492

230,920

768,174

710,441

Operating income

40,974

41,191

147,658

67,171

Other income (expenses):

Foreign exchange gain (loss)

52

(1,738

)

(1,170

)

735

Equity in net earnings of unconsolidated companies

2,639

3,482

8,359

9,427

Interest income and other, net

936

347

2,783

2,303

Interest and other debt costs

(7,183

)

(6,027

)

(21,918

)

(14,854

)

(3,556

)

(3,936

)

(11,946

)

(2,389

)

Earnings before income taxes

37,418

37,255

135,712

64,782

Income tax expense

7,471

3,168

31,553

11,013

Net earnings

$

29,947

34,087

104,159

53,769

Basic earnings per common share

$

0.61

0.67

2.10

1.05

Diluted earnings per common share

$

0.61

0.67

2.09

1.04

Weighted average common shares outstanding

49,162,547

51,036,420

49,585,930

51,203,598

Dilutive effect of stock options and restricted stock

221,738

206,329

220,669

267,661

Adjusted weighted average common shares

49,384,285

51,242,749

49,806,599

51,471,259

Cash dividends declared per common share

$

0.25

0.25

0.75

0.75

TIDEWATER INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and par value data)

December 31,

March 31,

ASSETS

2012

2012

Current assets:

Cash and cash equivalents

$

54,187

320,710

Trade and other receivables, net

361,989

309,468

Marine operating supplies

61,251

53,850

Other current assets

12,557

10,072

Total current assets

489,984

694,100

Investments in, at equity, and advances to unconsolidated companies

55,364

46,077

Properties and equipment:

Vessels and related equipment

4,151,491

3,952,468

Other properties and equipment

86,420

93,107

4,237,911

4,045,575

Less accumulated depreciation and amortization

1,139,259

1,139,810

Net properties and equipment

3,098,652

2,905,765

Goodwill

297,822

297,822

Other assets

113,842

117,854

Total assets

$

4,055,664

4,061,618

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

81,981

74,115

Accrued expenses

147,498

134,953

Accrued property and liability losses

3,356

3,636

Other current liabilities

31,089

26,225

Total current liabilities

263,924

238,929

Long-term debt

930,000

950,000

Deferred income taxes

211,440

214,627

Accrued property and liability losses

3,422

3,150

Other liabilities and deferred credits

120,567

128,555

Commitments and Contingencies

Stockholders' equity:

Common stock of $0.10 par value, 125,000,000 shares authorized, issued 49,397,616 shares at December 31, 2012 and 51,250,995 shares at March 31, 2012

4,939

5,125

Additional paid-in capital

117,981

102,726

Retained earnings

2,419,574

2,437,836

Accumulated other comprehensive loss

(16,183

)

(19,330

)

Total stockholders' equity

2,526,311

2,526,357

Total liabilities and stockholders' equity

$

4,055,664

4,061,618

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In thousands, except share and per share data)

Quarter Ended

Nine Months Ended

December 31,

December 31,

2012

2011

2012

2011

Net earnings

$

29,947

34,087

104,159

53,769

Other comprehensive income/(loss):

Unrealized gains/(losses) on available-for-sale securities

(353

)

70

(558

)

(931

)

Amortization of loss on derivative contract

117

119

350

349

Change in supplemental executive retirement plan pension liability

3,355

---

3,355

---

Total comprehensive income

$

33,066

34,273

107,306

53,187

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

Nine Months Ended

December 31,