HOUSTON, Feb. 26 /PRNewswire-FirstCall/ -- Cal Dive International, Inc.
(NYSE: DVR) reported 2006 annual net income of $119.4 million, or $1.91 per
diluted share, a 216% improvement in net income over its 2005 annual results,
primarily due to the Acergy and Torch acquisitions as well as improved market
demand following the hurricanes in 2005. The Company also reported fourth
quarter net income of $26.2 million, or $0.40 per diluted share. This
represents a 48% improvement in net income over last year's fourth quarter
results.
Financial Highlights
* Revenues: Annual 2006 revenues increased by $285.6 million, and
fourth quarter 2006 revenues increased by $39.9 million, over the full
year and fourth quarter of 2005, respectively, primarily due to the
Acergy and Torch acquisitions as well as improved market demand
following the hurricanes in 2005.
* Gross Profit Margins: The gross profit margin of 44% for 2006 exceeded
32% for 2005 because of improved utilization and increased average
contract pricing. Gross profit margin of 39% in the fourth quarter
2006 was 5% higher than the fourth quarter of 2005 due to increased
average contract pricing.
* SG&A: SG&A of $37.4 million for 2006 was an increase of $20.7 million
over 2005 due primarily to the Acergy and Torch acquisitions and
additional incentive compensation accruals as a result of improved
profitability. Fourth quarter 2006 SG&A of $12.2 million was an
increase of $4.0 million over the fourth quarter 2005 for the same
reasons. As a percentage of revenue, SG&A was 7.3% for 2006 compared
to 7.5% for 2005.
* Net Income: Annual 2006 net income increased by $81.7 million, and
fourth quarter 2006 net income increased by $8.5 million, over the
full year and fourth quarter of 2005, respectively, for the reasons
described above.
* Balance Sheet: Total debt was $201 million and cash and cash
equivalents were $22.7 million as of December 31, 2006. Net debt
represents 0.8 times EBITDA of $212.4 million for 2006.
The Company experienced significant growth during 2006 as a result of the
2005 Acergy and Torch acquisitions, coupled with increased market demand for
inspection, repair and maintenance services following the hurricanes of 2005.
In December 2006, Cal Dive, through an initial public offering, issued
22,173,000 shares of its common stock, representing approximately 27% of the
Company's outstanding common stock. Following the offering, Helix Energy
Solutions Group, Inc. (NYSE: HLX) owns 61,506,691 shares of Cal Dive common
stock, representing approximately 73% of the Company's outstanding common
stock.
Quinn Hebert, President and Chief Executive Officer of Cal Dive, stated,
"I am very proud of the job we've done this past year responding to the
challenging demands of the market following hurricanes Katrina and Rita, while
simultaneously integrating the Acergy and Torch acquisitions. Our offshore
and onshore people rose to the challenge as we doubled the size of our fleet
and employee base and consolidated from three headquarters with six operations
bases to one headquarters and two operations bases. I am most pleased by our
ability to maintain the high standards of excellence in offshore performance
throughout this period."
"Our offshore performance and growth through acquisitions translated into
record financial performance. We look forward to continued growth and success
during 2007. We project earnings per share in the range of $1.41 to $1.62 for
2007," continued Hebert.
When compared to the 2006 earnings per share, the range provided in the
2007 earnings guidance is significantly impacted by the higher number of
shares outstanding for 2007 resulting from the Company's initial public
offering in December 2006. The following table compares the Company's 2006
results with our outlook for 2007 (in thousands, except per share data):
2006 2007
Actual Low High
Revenue $509,917 $622,700 $665,700
Gross Profit 222,530 232,900 267,700
Net Income 119,414 118,300 136,400
Earnings Per Diluted Share $1.91 $1.41 $1.62
Diluted Shares 62,600 84,000 84,000
Further details will be provided during Cal Dive's conference call,
scheduled for 11:00 a.m. Central Standard Time on Tuesday, February 27th,
2007. Investors will be able to obtain the slide presentation and listen to
the live conference call broadcast from the Investor Relations page at
http://www.caldive.com . A replay will be available from the Investor
Relations-Past Events page.
Cal Dive International, Inc., headquartered in Houston, Texas, is a marine
contractor that provides manned diving, pipelay and pipe burial services to
the offshore oil and gas industry on the Gulf of Mexico Outer Continental
Shelf, the Middle East, Southeast Asia and Australia, with a fleet of 26
vessels, including 23 surface and saturation diving support vessels as well as
three shallow water pipelay vessels.
CAUTIONARY STATEMENT
This press release may include "forward-looking" statements that are
generally identifiable through our use of words such as "believe," "expect,"
"anticipate," "intend," "plan," "estimate," "project" and similar expressions
and include any statements that we make regarding our earnings expectations.
The forward-looking statements speak only as of the date of this release, and
we undertake no obligation to update or revise such statements to reflect new
information or events as they occur. Our actual future results may differ
materially due to a variety of factors, including changes in the level of
offshore exploration, development and production activity in the oil and
natural gas industry, our inability to obtain contracts with favorable pricing
terms if there is a downturn on our business cycle, intense competition in our
industry, the operational risks inherent in our business, risks associated
with our relationship with Helix Energy Solutions Group, Inc., our controlling
stockholder, and other risks detailed in our Registration Statement on Form S-
1 that was declared effective by the Securities and Exchange Commission on
December 14, 2006.
CAL DIVE INTERNATIONAL, INC.
Comparative Condensed Consolidated Statements of Operations
(000's omitted, except per share data)
Three Months Ended Twelve Months Ended
Dec. 31, Dec. 31,
2006 2005 2006 2005
(unaudited) (unaudited)
Net Revenues $136,999 $97,062 $509,917 $224,299
Cost of Sales 83,356 64,216 287,387 152,586
Gross Profit 53,643 32,846 222,530 71,713
Gain on Sale of
Assets, net 27 270 349 270
Selling and
Administrative 12,221 8,247 37,431 16,730
Income from Operations 41,449 24,869 185,448 55,253
Equity in Earnings
(Losses) of
Investments 100 2,145 (487) 2,817
Interest Income, net
& Other (201) 23 163 45
Income Before Income Taxes 41,348 27,037 185,124 58,115
Income Tax Provision 15,179 9,405 65,710 20,385
Net Income Applicable to
Common Stockholders $26,169 $17,632 $119,414 $37,730
Other Financial Data:
Income from
Operations 41,449 24,869 185,448 55,253
Equity in Earnings
(Losses) of
Investments 100 2,145 (487) 2,817
Depreciation and
Amortization 7,468 4,694 24,515 15,308
EBITDA 50,126 31,708 212,406 73,378
Weighted Avg. Shares
Outstanding
Basic and Diluted 65,845 61,507 62,600 61,507
Earnings Per Share:
Basic and Diluted $0.40 $0.29 $1.91 $0.61
CAL DIVE INTERNATIONAL, INC.
Comparative Condensed Consolidated Balance Sheet
(000's omitted)
ASSETS Dec. 31, 2006 Dec. 31, 2005
(unaudited)
Current Assets:
Cash and equivalents $22,655 $---
Accounts receivable 127,617 89,321
Other current assets 18,475 21,163
Total Current Assets 168,747 110,484
Net Property & Equipment 222,247 113,604
Equity Investments 10,871 11,513
Goodwill 26,666 27,814
Other asset, net 23,622 14,469
Total Assets $452,153 $277,884
LIABILITIES & SHAREHOLDERS' EQUITY Dec. 31, 2006 Dec. 31, 2005
(unaudited)
Current liabilities:
Accounts payable $39,810 $32,034
Accrued Liabilities 19,004 41,835
Total Current Liabilities 58,814 73,869
Long-term debt 201,000 ---
Long-term payable to Helix 11,028 ---
Deferred income taxes 20,824 22,621
Other long term liabilities 2,726 3,611
Shareholders' equity 157,761 177,783
Total Liabilities & Equity $452,153 $277,884
Reconciliation of Non-GAAP Financial Measures
For the Periods Ended December 31, 2006 and 2005
(000's omitted, except ratio data)
In addition to net income, we evaluate our financial performance based on
other factors, one primary measure of which is earnings before net interest
expense, taxes, depreciation and amortization, which we refer to as EBITDA. We
use EBITDA as a measure of the operational strengths and performance of our
business and not as a measure of liquidity. However, a limitation of the use
of EBITDA as a performance measure is that it does not reflect the periodic
costs of certain capitalized tangible and intangible assets used in generating
revenues in our business. Accordingly, EBITDA should be considered in addition
to, and not as a substitute for, net income and other measures of financial
performance reported in accordance with GAAP. Furthermore, this measure may
vary among companies; thus, EBITDA as presented below may not be comparable to
similarly titled measures of other companies.
We believe EBITDA is useful to investors and other external users of our
financial statements in evaluating our operating performance because:
-- it is widely used by investors in our industry to measure a company's
operating performance without regard to items such as interest
expense, depreciation and amortization, which can vary substantially
from company to company depending upon accounting methods and book
value of assets, capital structure and the method by which assets were
acquired; and
-- it helps investors more meaningfully evaluate and compare the results
of our operations from period to period by removing the impact of our
capital structure (primarily interest charges from our outstanding
debt) and asset base (primarily depreciation and amortization of our
vessels) from our operating results.
Our management uses EBITDA:
-- as a measure of operating performance because it assists us in
comparing our performance on a consistent basis as it removes the
impact of our capital structure and asset base from our operating
results;
-- in presentations to our board of directors to enable them to have the
same consistent measurement basis of operating performance used by
management;
-- as a measure for planning and forecasting overall expectations and for
evaluating actual results against such expectations;
-- to assess compliance with financial ratios and covenants that will be
included in our revolving credit facility; and
-- in communications with lenders, rating agencies and others, concerning
our financial performance.
The following table presents a reconciliation of EBITDA to net income,
which is the most directly comparable GAAP financial measure of our operating
results:
Three Months Ended Twelve Months Ended
Dec. 31, Dec. 31,
2006 2005 2006 2005
EBITDA (unaudited) $50,126 $31,708 $212,406 $73,378
Less: Depreciation &
Amortization 7,468 4,694 24,515 15,308
Less: Stock Compensation
Expense (1) 1,109 0 2,930 0
Less: Interest Expense
(Income) 201 -23 -163 -45
Less: Provision for Income
Taxes 15,179 9,405 65,710 20,385
Net Income $26,169 $17,632 $119,414 $37,730
Long Term Debt at December
31, 2006 $201,000
Less: Cash at December 31,
2006 22,655
Net Debt 178,345
EBITDA for Year Ended
December 31, 2006 $212,406
Ratio 0.8
Note 1: Relates to Helix restricted stock or stock options granted to
CDI employees prior to the Initial Public Offering
SOURCE Cal Dive International, Inc.
CONTACT: G. Kregg Lunsford, Chief Financial Officer of Cal Dive
International, Inc., +1-281-618-0516
