Tidewater Reports First Quarter Results For Fiscal 2014

Business Wirevia The Motley Fool
Updated

Tidewater Reports First Quarter Results For Fiscal 2014

NEW ORLEANS--(BUSINESS WIRE)-- Tidewater Inc. (NYS: TDW) announced today first quarter net earnings for the period ended June 30, 2013, of $30.1 million, or $0.61 per common share, on revenues of $334.1 million. For the same quarter last year, net earnings were $32.9 million, or $0.65 per common share, on revenues of $294.4 million. The immediately preceding quarter ended March 31, 2013, had net earnings of $46.6 million, or $0.95 per common share, on revenues of $328.3 million.

Net earnings for the June 30, 2013 quarter reflect $4.6 million ($3.3 million after tax, or $0.07 per common share) in non-recurring costs, including $3.7 million ($2.4 million after tax, or $0.05 per common share) of transaction fees associated with the June 2013 acquisition of Troms Offshore Supply AS and a $0.9 million ($0.9 million after tax, or $0.02 per common share) charge related to the settlement of the previously disclosed assessment by the Customs Department of Equatorial Guinea, both of which are included in general and administrative expenses.


Financial results of Troms Offshore Supply AS are included in the current quarter from June 4, 2013, the date of the acquisition, through June 30, 2013.

As previously announced, Tidewater will hold a conference call to discuss June quarterly earnings on Tuesday, August 6, 2013, at 10:00 a.m. Central time. Investors and interested parties may listen to the teleconference via telephone by calling 1-888-771-4371 if calling from the U.S. or Canada (1-847-585-4405 if calling from outside the U.S.) and ask for the "Tidewater" call just prior to the scheduled start. A replay of the conference call will be available beginning at 12:00 p.m. Central time on August 6, 2013, and will continue until 11:59 p.m. Central time on August 8, 2013. 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 35319935.

A simultaneous webcast of the conference call will be available online at the Tidewater Inc. website, (http://www.tdw.com). The online replay will be available until September 6, 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)

Three Months Ended

June 30,

2013

2012

Revenues:

Vessel revenues

$

331,630

290,094

Other operating revenues

2,455

4,354

334,085

294,448

Costs and expenses:

Vessel operating costs

196,161

161,336

Costs of other operating revenues

2,020

3,523

Vessel operating leases

4,031

4,492

Depreciation and amortization

40,108

35,784

General and administrative

50,480

40,664

Gain on asset dispositions, net

(2,140

)

(838

)

290,660

244,961

Operating income

43,425

49,487

Other income (expenses):

Foreign exchange loss

(89

)

(1,751

)

Equity in net earnings of unconsolidated companies

4,420

2,363

Interest income and other, net

740

719

Interest and other debt costs

(8,913

)

(7,587

)

(3,842

)

(6,256

)

Earnings before income taxes

39,583

43,231

Income taxes

9,500

10,375

Net earnings

$

30,083

32,856

Basic earnings per common share

$

0.61

0.65

Diluted earnings per common share

$

0.61

0.65

Weighted average common shares outstanding

49,226,911

50,193,065

Dilutive effect of stock options and restricted stock

331,090

174,686

Adjusted weighted average common shares

49,558,001

50,367,751

Cash dividends declared per common share

$

0.25

0.25

TIDEWATER INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and par value data)

June 30,

March 31,

ASSETS

2013

2013

Current assets:

Cash and cash equivalents

$

64,813

40,569

Trade and other receivables, net

467,777

393,438

Marine operating supplies

62,007

62,348

Other current assets

24,576

11,735

Total current assets

619,173

508,090

Investments in, at equity, and advances to unconsolidated companies

49,445

46,047

Properties and equipment:

Vessels and related equipment

4,589,777

4,250,169

Other properties and equipment

66,747

83,779

4,656,524

4,333,948

Less accumulated depreciation and amortization

1,114,256

1,144,129

Net properties and equipment

3,542,268

3,189,819

Goodwill

341,448

297,822

Other assets

144,708

126,277

Total assets

$

4,697,042

4,168,055

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

75,976

63,602

Accrued expenses

170,784

159,086

Accrued property and liability losses

4,328

4,133

Other current liabilities

40,218

39,808

Total current liabilities

291,306

266,629

Long-term debt

1,475,062

1,000,000

Deferred income taxes

189,266

189,763

Accrued property and liability losses

11,886

10,833

Other liabilities and deferred credits

144,055

139,074

Commitments and Contingencies

Stockholders' equity:

Common stock of $0.10 par value, 125,000,000 shares authorized, issued 49,507,077 shares at June 30, 2013 and 49,485,832 shares at March 31, 2013

4,951

4,949

Additional paid-in capital

125,872

119,975

Retained earnings

2,471,557

2,453,973

Accumulated other comprehensive loss

(16,913

)

(17,141

)

Total stockholders' equity

2,585,467

2,561,756

Total liabilities and stockholders' equity

$

4,697,042

4,168,055

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In thousands)

Three Months Ended

June 30,

2013

2012

Net earnings

$

30,083

32,856

Other comprehensive income/(loss):

Unrealized gains/(losses) on available-for-sale securities net of tax of $60 and $(336)

111

(624

)

Amortization of loss on derivative contract net of tax of $63 and $63

117

116

Total comprehensive income

$

30,311

32,348

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

Three Months Ended

June 30,

2013

2012

Operating activities:

Net earnings

$

30,083

32,856

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization

40,108

35,784

Provision (benefit) for deferred income taxes

(12,151

)

(2,654

)

Gain on asset dispositions, net

(2,140

)

(838

)

Equity in earnings of unconsolidated companies, less dividends

(3,398

)

(1,614

)

Compensation expense - stock-based

5,711

4,359

Excess tax benefit on stock options exercised

(12

)

(49

)

Changes in assets and liabilities, net:

Trade and other receivables

(62,616

)

(9,698

)

Marine operating supplies

1,100

(1,962

)

Other current assets

(11,589

)

(10,127

)

Accounts payable

1,997

18,267

Accrued expenses

11,115

2,636

Accrued property and liability losses

158

(110

)

Other current liabilities

944

219

Other liabilities and deferred credits

876

1,165

Other, net

3,409

846

Net cash provided by operating activities

3,595

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