Tidewater

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Tidewater Reports First Quarter Results For Fiscal 2018

NEW ORLEANS, Aug. 8, 2017 /PRNewswire/ -- Tidewater Inc. (NYSE:TDW) announced today a first quarter net loss for the period ended June 30, 2017, of $524.4 million, or $11.13 per common share, on revenues of $115.1 million. For the same quarter last year, net loss was $89.1 million, or $1.89 per common share, on revenues of $167.9 million. The immediately preceding quarter ended March 31, 2017, had a net loss of $94.9 million, or $2.01 per common share, on revenues of $160.7 million.

Included in the net loss for the quarter ended June 30, 2017 were the following:

  • $313.2 million ($313.2 million after-tax, or $6.65 per share) of reorganization items related to the Company's Chapter 11 proceedings.
  • $163.4 million ($163.4 million after-tax, or $3.47 per share) in non-cash asset impairment charges that resulted from impairment reviews undertaken during the June 2017 quarter.
  • $11.9 million ($11.9 million after-tax, or $0.25 per share) of debt renegotiation expenses were incurred in the quarter, which includes $6.7 million classified as general and administrative expenses and $5.2 million classified as reorganization items.
  • $1.2 million ($1.2 million after-tax, or $0.02 per share) of foreign exchange losses resulting primarily from the strengthening of the Norwegian kroner on liabilities relative to the U.S. dollar.

Included in the net loss for the prior fiscal year's quarter ended June 30, 2016 were the following:

  • $36.9 million ($36.1 million after-tax, or $0.77 per share) in non-cash asset impairment charges that resulted from impairment reviews undertaken during the June 2016 quarter.
  • $2.7 million ($2.6 million after-tax, or $0.06 per share) of foreign exchange losses, most notably the devaluation of Nigerian nairas relative to the U.S. dollar.
  • $1.1 million ($1.1 million after-tax, or $0.02 per share) of foreign exchange losses which is included in Equity in net losses of unconsolidated companies and related to our Angola joint venture, Sonatide.

Included in the net loss for the preceding quarter ended March 31, 2017 were the following:

  • $64.9 million ($64.9 million after-tax, or $1.38 per share) in non-cash asset impairment charges that resulted from impairment reviews undertaken during the March 2017 quarter.
  • $16.8 million ($16.8 million after-tax, or $0.36 per share) of general and administrative expenses related to debt renegotiations.
  • $39.1 million ($31.3 million after-tax and after consideration of noncontrolling interests, or $0.67 per share) of revenue related to the early termination of a long-term vessel charter contract.

Income tax expense largely reflects tax liabilities in certain jurisdictions that levy taxes on bases other than pre-tax profitability (so called "deemed profit" regimes.)

Reorganization and Chapter 11 Proceedings

As previously disclosed, on May 17, 2017, Tidewater and certain of its subsidiaries filed voluntary petitions for relief under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware, seeking approval of a prepackaged plan of restructuring. 

On July 31, 2017, the company and its affiliated chapter 11 debtors emerged from bankruptcy after successfully completing its reorganization pursuant to the Second Amended Joint Prepackaged Chapter 11 Plan of Reorganization of Tidewater and its Affiliated Debtors, that was confirmed on July 17, 2017 by the United States Bankruptcy Court for the District of Delaware.

Additional details about the restructuring are available on the company's website, www.tdw.com, and at http://dm.epiq11.com/tidewater, or via the company's restructuring information line 844-843-0204 (toll free) or 504-597-5543 (international calls). Additional details about the restructuring will also be available in the company's Form 10-Q, which is expected to be filed with the SEC shortly after the issuance of this press release.

The company will not be hosting an earnings conference call to discuss first quarter fiscal 2018 financial results.  However, we expect to resume holding quarterly earnings conference calls to report our second quarter fiscal 2018 financial results.

Tidewater is the leading provider of 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.

(Debtor-in-Possession)

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)

(Unaudited)

(In thousands, except share and per share data)




Three Months Ended




June 30,




2017



2016


Revenues:









Vessel revenues


$

112,257




162,430


Other operating revenues



2,849




5,495





115,106




167,925


Costs and expenses:









Vessel operating costs



83,773




108,874


Costs of other operating revenues



1,585




3,903


General and administrative



33,059




37,047


Vessel operating leases



5,542




8,441


Depreciation and amortization



36,287




44,552


Gain on asset dispositions, net



(3,189)




(5,643)


Asset impairments



163,423




36,886





320,480




234,060


Operating loss



(205,374)




(66,135)


Other income (expenses):









Foreign exchange loss



(1,157)




(2,733)


Equity in net earnings (losses) of unconsolidated companies



4,517




(1)


Interest income and other, net



1,680




1,176


Reorganization items



(313,176)





Interest and other debt costs, net



(10,605)




(16,954)





(318,741)




(18,512)


Loss before income taxes



(524,115)




(84,647)


Income tax expense



295




3,996


Net loss


$

(524,410)




(88,643)


Less: Net income attributable to noncontrolling interests



24




454


Net loss attributable to Tidewater Inc.


$

(524,434)




(89,097)


Basic loss per common share


$

(11.13)




(1.89)


Diluted loss per common share


$

(11.13)




(1.89)


Weighted average common shares outstanding



47,121,304




47,067,715


Dilutive effect of stock options and restricted stock







Adjusted weighted average common shares



47,121,304




47,067,715


 

TIDEWATER INC.

(Debtor-in-Possession)

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and par value data)




June 30,



March 31,


ASSETS


2017



2017


Current assets:









Cash and cash equivalents


$

683,778




706,404


Trade and other receivables, net



116,612




123,262


Due from affiliate



252,810




262,652


Marine operating supplies



31,097




30,560


Other current assets



34,619




18,409


Total current assets



1,118,916




1,141,287


Investments in, at equity, and advances to unconsolidated companies



49,216




45,115


Net properties and equipment



2,659,314




2,864,762


Other assets



92,134




139,535


Total assets


$

3,919,580




4,190,699











LIABILITIES AND EQUITY









Current liabilities:









Accounts payable


$

35,087




31,599


Accrued expenses



63,155




78,121


Due to affiliate



121,037




132,857


Accrued property and liability losses



2,758




3,583


Current portion of long-term debt



10,106




2,034,124


Other current liabilities



28,029




48,429


Total current liabilities



260,172




2,328,713


Long-term debt



80,863





Deferred income taxes






46,013


Accrued property and liability losses



2,776




10,209


Other liabilities and deferred credits



60,382




154,705


Liabilities subject to compromise



2,389,557














Commitments and Contingencies


















Equity:









Common stock of $0.10 par value, 125,000,000 shares authorized, issued 47,121,304 shares at June 30, 2017 and 47,121,304 shares at March 31, 2017



4,712




4,712


Additional paid-in capital



165,516




165,221


Retained earnings



950,895




1,475,329


Accumulated other comprehensive loss



(10,258)




(10,344)


Total stockholders' equity



1,110,865




1,634,918


Noncontrolling interests



14,965




16,141


Total equity



1,125,830




1,651,059


Total liabilities and equity


$

3,919,580




4,190,699


 

TIDEWATER INC.

(Debtor-in-Possession)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)

(In thousands)




Three Months Ended




June 30,




2017



2016


Net loss


$

(524,410)




(88,643)


Other comprehensive income:









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



86




161


Amortization of loss on derivative contract, net of tax of $0 and $0






71


Total comprehensive loss


$

(524,324)




(88,411)


 

TIDEWATER INC.

(Debtor-in-Possession)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)




Three Months Ended




June 30,




2017



2016


Operating activities:









Net loss


$

(524,410)




(88,643)


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









Reorganization items



308,011





Depreciation and amortization



36,287




44,552


Provision for deferred income taxes



(5,543)





Gain on asset dispositions, net



(3,189)




(5,643)


Asset impairments



163,423




36,886


Equity in earnings (losses) of unconsolidated companies, less dividends



(4,101)




108


Compensation expense - stock-based



326




1,536


Changes in assets and liabilities, net:









Trade and other receivables



6,650




26,414


Changes in due to/from affiliate, net



(1,978)




5,947


Marine operating supplies



(514)




1,288


Other current assets



(16,210)




(4,147)


Accounts payable



3,488




4,613


Accrued expenses



8,603




(19,993)


Accrued property and liability losses



(825)




289


Other current liabilities



2,644




(6,814)


Other liabilities and deferred credits



1,251




(3,212)


Other, net



2,724




(4,084)


Net cash used in operating activities



(23,363)




(10,903)


Cash flows from investing activities:









Proceeds from sales of assets



608




1,234


Additions to properties and equipment



(1,627)




(7,578)


Payments related to novated vessel construction contract



5,272





Refunds from cancelled vessel construction contracts






11,515


Net cash provided by investing activities



4,253




5,171


Cash flows from financing activities:









Principal payment on long-term debt



(2,316)




(2,324)


Other



(1,200)




(1,722)


Net cash used in financing activities



(3,516)




(4,046)


Net change in cash and cash equivalents



(22,626)




(9,778)


Cash and cash equivalents at beginning of period



706,404




678,438


Cash and cash equivalents at end of period


$

683,778




668,660


Supplemental disclosure of cash flow information:









Cash paid during the period for:









Interest, net of amounts capitalized


$

433




26,733


Income taxes


$

3,611




11,006


Supplemental disclosure of non-cash investing activities:









Additions to properties and equipment


$




2,537


 

TIDEWATER INC.

(Debtor-in-Possession)

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

(In thousands)
















Accumulated
















Additional







other



Non








Common



paid-in



Retained



comprehensive



controlling








stock



capital



earnings



loss



interest



Total


Balance at March 31, 2017


$

4,712




165,221




1,475,329




(10,344)




16,141




1,651,059


Total comprehensive loss









(524,434)




86




24




(524,324)


Stock option expense






293













293


Amortization of restricted stock units






2













2


Cash paid to noncontrolling interests















(1,200)




(1,200)


Balance at June 30, 2017


$

4,712




165,516




950,895




(10,258)




14,965




1,125,830



























Balance at March 31, 2016


$

4,707




166,604




2,135,075




(6,866)




6,034




2,305,554


Total comprehensive loss









(89,097)




232




454




(88,411)


Stock option activity






277













277


Cancellation of restricted stock awards









192










192


Amortization/cancellation of restricted stock units






1,383













1,383


Balance at June 30, 2016


$

4,707




168,264




2,046,170




(6,634)




6,488




2,218,995


The company's vessel revenues and vessel operating costs and the related percentage of total vessel revenues for the quarters ended June 30, 2017 and 2016 and for the quarter ended March 31, 2017, were as follows:






Quarter



Quarter Ended



Ended



June 30,



March 31,

(In thousands)


2017



%


2016



%


2017



%

Vessel revenues:






















Americas (A)


$

31,887




28%



60,608




37%



80,533




51%

Asia/Pacific



4,627




4%



7,921




5%



5,951




4%

Middle East



23,139




21%



24,202




15%



20,727




13%

Africa/Europe



52,604




47%



69,699




43%



49,694




32%

Total vessel revenues


$

112,257




100%



162,430




100%



156,905




100%

Vessel operating costs:






















Crew costs


$

42,210




38%



55,888




34%



41,829




27%

Repair and maintenance



13,844




12%



16,529




10%



17,074




11%

Insurance and loss reserves



3,124




3%



6,996




4%



(1,767)




(1%)

Fuel, lube and supplies



9,428




8%



10,772




7%



9,279




6%

Other



15,167




14%



18,689




12%



14,430




9%

Total vessel operating costs



83,773




75%



108,874




67%



80,845




52%

Vessel operating margin (B)


$

28,484




25%



53,556




33%



76,060




48%

Note (A):  Included in Americas vessel revenue for the quarter ended March 31, 2017 is $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract. 

Note (B):  The following table reconciles vessel operating margin as presented above to vessel operating profit (loss) for the quarters ended June 30, 2017 and 2016 and for the quarter ended March 31, 2017:






Quarter




Quarter Ended



Ended




June 30,



March 31,


(In thousands)


2017



2016



2017


Vessel operating margin (C)


$

28,484




53,556




76,060


General and administrative expenses - vessel operations



(18,002)




(25,916)




(19,445)


Vessel operating leases



(5,542)




(8,441)




(8,443)


Depreciation and amortization - vessel operations



(34,892)




(42,441)




(36,173)


Vessel operating profit (loss)


$

(29,952)




(23,242)




11,999


Note (C):  Included in vessel operating margin for the quarter ended March 31, 2017 is $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract. 

The company's other operating profit (loss) for the quarters ended June 30, 2017 and 2016 and for the quarter ended March 31, 2017, consists of the following:






Quarter




Quarter Ended



Ended




June 30,



March 31,


(In thousands)


2017



2016



2017


Other operating revenues


$

2,849




5,495




3,844


Costs of other marine revenues



(1,585)




(3,903)




(2,689)


General and administrative expenses - other operating activities



(355)




(638)




(525)


Depreciation and amortization - other operating activities



(854)




(1,381)




(855)


Other operating profit (loss)


$

55




(427)




(225)


The company's operating loss and other components of loss before income taxes and the related percentage of total revenues for the quarters ended June 30, 2017 and 2016 and for the quarter ended March 31, 2017, were as follows:



Quarter Ended



Quarter Ended




June 30,



March 31,


(In thousands)


2017



%



2016



%



2017



%


Vessel operating profit (loss):

























Americas (D)


$

(15,699)




(14%)




(4,326)




(3%)




30,618




19%


Asia/Pacific



(4,782)




(4%)




(5,574)




(3%)




(3,358)




(2%)


Middle East



3,466




3%




(33)




(<1%)




(2,806)




(2%)


Africa/Europe



(12,937)




(11%)




(13,309)




(8%)




(12,455)




(8%)





(29,952)




(26%)




(23,242)




(14%)




11,999




7%


Other operating profit (loss)



55




<1%




(427)




(<1%)




(225)




(<1%)





(29,897)




(26%)




(23,669)




(14%)




11,774




7%



























Corporate general and administrative expenses (E)



(14,702)




(13%)




(10,493)




(6%)




(21,757)




(14%)


Corporate depreciation



(541)




(<1%)




(730)




(1%)




(564)




(<1%)


Corporate expenses



(15,243)




(13%)




(11,223)




(7%)




(22,321)




(14%)



























Gain on asset dispositions, net



3,189




3%




5,643




3%




6,064




3%


Asset impairments



(163,423)




(142%)




(36,886)




(21%)




(64,857)




(40%)


Operating loss


$

(205,374)




(178%)




(66,135)




(39%)




(69,340)




(43%)


Foreign exchange gain (loss)



(1,157)




(1%)




(2,733)




(2%)




664




<1%


Equity in net earnings (losses) of unconsolidated companies



4,517




4%




(1)




(<1%)




2,841




2%


Interest income and other, net



1,680




1%




1,176




1%




1,588




1%


Reorganization items (F)



(313,176)




(272%)














Interest and other debt costs, net



(10,605)




(9%)




(16,954)




(10%)




(21,008)




(13%)


Loss before income taxes


$

(524,115)




(455%)




(84,647)




(50%)




(85,255)




(53%)


Note (D):  Americas segment vessel operating profit for the quarter ended March 31, 2017 includes $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract.

Note (E):  Corporate general and administrative expenses for the quarters ended June 30, 2017 and 2016 and for the quarter ended March 31, 2017 include $6.7 million, $3.9 million and $16.8 million, respectively, of costs associated with debt renegotiations. Costs associated with debt renegotiations were classified as general and administrative expenses through our chapter 11 Petition Date of May 17, 2017. Subsequent to the Petition Date, $5.2 million of costs associated with debt renegotiations were classified as reorganization items.

Note (F):  Reorganization items of $313.2 million which are comprised of (i) the lessors' claims reserve of $323.6 million plus leasehold improvements to vessels underlying sale leaseback transactions of $1.7 million, partially offset by the recognition of remaining deferred gains of $105.9 million and accrued liabilities associated with the recognition of lease expense on a straight-line basis of $11.3 million, (ii) $94.8 million of make-whole claims on the Senior Notes and $5.1 of debt issue costs and (iii) professional fees associated with the restructuring incurred subsequent to the Petition Date of $5.2 million.

The company's revenues, days-based vessel utilization percentages and average day rates by vessel class and in total for the quarters ended June 30, 2017 and 2016 and for the quarter ended March 31, 2017, were as follows: 











Quarter




Quarter Ended



Ended




June 30,



March 31,




2017



2016



2017


REVENUE BY VESSEL CLASS (In thousands):













Americas fleet:













Deepwater (G)


$

17,313




40,387




62,831


Towing-supply



11,274




16,879




14,738


Other



3,300




3,342




2,964


Total


$

31,887




60,608




80,533


Asia/Pacific fleet:













Deepwater


$

1,154




2,590




1,138


Towing-supply



3,473




5,331




4,813


Other










Total


$

4,627




7,921




5,951


Middle East fleet:













Deepwater


$

9,547




6,038




8,295


Towing-supply



13,592




18,164




12,432


Other










Total


$

23,139




24,202




20,727


Africa/Europe fleet:













Deepwater


$

22,158




33,289




23,032


Towing-supply



27,019




27,917




22,794


Other



3,427




8,493




3,868


Total


$

52,604




69,699




49,694


Worldwide fleet:













Deepwater


$

50,172




82,304




95,296


Towing-supply



55,358




68,291




54,777


Other



6,727




11,835




6,832


Total


$

112,257




162,430




156,905
















Note (G): Included in Americas fleet deepwater revenue for the quarter ended March 31, 2017 is $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract.










Quarter




Quarter Ended


Ended




June 30,


March 31,




2017


2016


2017


UTILIZATION:











Americas fleet:











Deepwater



23.4%



41.8



29.7


Towing-supply


36.4



41.6



41.8


Other



50.0



48.0



45.7


Total



30.3%



42.5



35.2


Asia/Pacific fleet:











Deepwater



10.4%



10.2



9.1


Towing-supply


27.1



53.3



34.4


Other








Total



21.3%



33.5



24.7


Middle East fleet:











Deepwater



89.0%



58.8



79.7


Towing-supply


86.8



67.7



71.4


Other








Total



87.5%



65.9



74.2


Africa/Europe fleet:











Deepwater



51.7%



54.7



53.6


Towing-supply


51.7



46.4



42.1


Other



31.3



52.1



31.0


Total



45.6%



51.0



42.5


Worldwide fleet:











Deepwater



41.1%



44.4



42.6


Towing-supply


50.9



51.6



46.9


Other


33.9



50.2



32.8


Total



44.0%



48.6



42.6


 











Quarter




Quarter Ended



Ended




June 30,



March 31,




2017



2016



2017


AVERAGE VESSEL DAY RATES:













Americas fleet:













Deepwater (H)


$

19,869




25,480




57,311


Towing-supply



15,959




16,917




17,816


Other



9,071




8,507




9,015


Total


$

16,423




20,368




35,756


Asia/Pacific fleet:













Deepwater


$

12,686




22,039




12,641


Towing-supply



6,489




6,595




7,640


Other










Total


$

7,389




8,555




8,265


Middle East fleet:













Deepwater


$

9,564




15,468




9,643


Towing-supply



7,826




10,167




8,214


Other










Total


$

8,460




11,117




8,732


Africa/Europe fleet:













Deepwater


$

11,482




15,840




11,763


Towing-supply



13,040




15,085




13,940


Other



3,265




4,713




3,652


Total


$

10,413




12,112




10,682


Worldwide fleet:













Deepwater


$

12,897




19,622




23,797


Towing-supply



10,961




12,546




11,893


Other



4,759




5,392




4,922


Total


$

10,842




13,727




15,693


Note (H):  Included in Americas fleet deepwater average day rates for the quarter ended March 31, 2017 is $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract. Excluding the early cancellation revenue, total Americas fleet deepwater average day rates would have been $21,602 for the quarter ended March 31, 2017.

The company's average number of vessels by class and geographic distribution for the quarters ended June 30, 2017 and 2016 and for the quarter ended March 31, 2017:





Quarter




Quarter Ended


Ended




June 30,


March 31,




2017


2016


2017


Americas fleet:








Deepwater


41


42


41


Towing-supply


21


26


22


Other


8


9


8


Total


70


77


71


Less stacked vessels


35


30


34


Active vessels


35


47


37


Asia/Pacific fleet:








Deepwater


10


13


11


Towing-supply


22


17


20


Other


1


1


1


Total


33


31


32


Less stacked vessels


24


17


24


Active vessels


9


14


8


Middle East fleet:








Deepwater


12


7


12


Towing-supply


22


29


24


Other





Total


34


36


36


Less stacked vessels


1


6



Active vessels


33


30


36


Africa/Europe fleet:








Deepwater


41


42


41


Towing-supply


44


44


43


Other


37


38


38


Total


122


124


122


Less stacked vessel


49


34


54


Active vessels


73


90


68


Active owned or chartered vessels


150


181


149


Stacked vessels


109


87


112


Total owned or chartered vessels


259


268


261


Joint-venture and other


8


9


8


Total


267


277


269


Note (I):  Included in total owned or chartered vessels at June 30, 2017 and 2016 and at March 31, 2017, were 115, 89 and 111 vessels, respectively, that were stacked by the company. These vessels were considered to be in service and are included in the calculation of our utilization statistics.

The table below summarizes the various commitments to acquire and construct new vessels, by vessel type, as of June 30, 2017:

 (In thousands, except vessel count)


Number of

Vessels



Total Cost



Invested

Through

6/30/17



Remaining

Balance

6/30/17


Vessels under construction (J):

















Deepwater PSV


1



$

53,639




47,452




6,187


Total vessel commitments


1



$

53,639




47,452




6,187


Note (J):  Two remaining option vessels, a vessel rejected at the time of delivery and a fast supply boat are not included in the table above. The company has $6.2 million in unfunded capital commitments associated with one vessel under construction at June 30, 2017.

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View original content:http://www.prnewswire.com/news-releases/tidewater-reports-first-quarter-results-for-fiscal-2018-300501558.html

SOURCE Tidewater Inc.

Tidewater Inc., Quinn Fanning, Executive Vice President and Chief Financial Officer, 713-470-5300, or Joe Bennett, Executive Vice President and Chief Investor Relations Officer, 504-566-4506

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