Press Releases
Summary of Results (in thousands, except per share amounts and percentages, unaudited) |
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Three Months Ended | Year Ended | |||||||||||||||||||||||
12/31/2014 | 12/31/2013 | 9/30/2014 | 12/31/2014 | 12/31/2013 | ||||||||||||||||||||
Revenues | $ | 207,160 | $ | 226,837 | $ | 340,837 | $ | 1,107,156 | $ | 876,561 | ||||||||||||||
Gross Profit | $ | 32,805 | $ | 71,164 | $ | 126,247 | $ | 344,036 | $ | 260,685 | ||||||||||||||
16 | % | 31 | % | 37 | % | 31 | % | 30 | % | |||||||||||||||
Net Income Applicable to
Common Shareholders |
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Income from continuing operations | $ | 7,960 | $ | 36,503 | $ | 75,586 | $ | 195,047 | $ | 108,849 | ||||||||||||||
Income from discontinued operations | - | - | - | - | 1,073 | |||||||||||||||||||
Total | $ | 7,960 | $ | 36,503 | $ | 75,586 | $ | 195,047 | $ | 109,922 | ||||||||||||||
Diluted Earnings Per Share | ||||||||||||||||||||||||
Income from continuing operations | $ | 0.08 | $ | 0.35 | $ | 0.71 | $ | 1.85 | $ | 1.03 | ||||||||||||||
Income from discontinued operations | - | - | - | - | 0.01 | |||||||||||||||||||
Total | $ | 0.08 | $ | 0.35 | $ | 0.71 | $ | 1.85 | $ | 1.04 | ||||||||||||||
Adjusted EBITDA from continuing operations | $ | 39,362 | $ | 81,549 | $ | 137,097 | $ | 378,010 | $ | 268,311 |
Segment Information, Operational and Financial Highlights (in thousands, unaudited) |
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Three Months Ended | ||||||||||||||
12/31/2014 | 12/31/2013 | 9/30/2014 | ||||||||||||
Revenues: | ||||||||||||||
Well Intervention | $ | 121,792 | $ | 132,559 | $ | 205,139 | ||||||||
Robotics | 80,923 | 90,306 | 131,707 | |||||||||||
Production Facilities | 21,802 | 19,216 | 24,184 | |||||||||||
Subsea Construction | - | 2,016 | - | |||||||||||
Intercompany Eliminations | (17,357 | ) | (17,260 | ) | (20,193 | ) | ||||||||
Total | $ | 207,160 | $ | 226,837 | $ | 340,837 | ||||||||
Income from Operations: | ||||||||||||||
Well Intervention | $ | 10,513 | $ | 37,934 | $ | 80,789 | ||||||||
Robotics | 8,092 | 15,141 | 28,397 | |||||||||||
Production Facilities | 8,011 | 9,814 | 11,284 | |||||||||||
Subsea Construction | 52 | 4,654 | 41 | |||||||||||
Gain (Loss) on Disposition of Assets | (178 | ) | - | - | ||||||||||
Corporate / Other | (16,898 | ) | (12,781 | ) | (14,283 | ) | ||||||||
Intercompany Eliminations | 129 | (822 | ) | 103 | ||||||||||
Total | $ | 9,721 | $ | 53,940 | $ | 106,331 | ||||||||
Business Segment Results
-
Well Intervention revenues decreased 41% in the fourth quarter of 2014
from revenues in the third quarter of 2014, due to a substantial
decrease in vessel utilization across the fleet. In the Gulf of
Mexico , vessel utilization was 64% in the fourth quarter, compared to 95% in the third quarter of 2014, primarily due to the H534 being idle for 39 days; the vessel was also placed out of service for an additional 14 days for regulatory inspection. Additionally, the Q4000 worked at reduced rates while making repairs to the vessel after being struck by a supply boat in late November. The rental intervention riser system,IRS no. 2, was on-hire for the entire fourth quarter of 2014. In theNorth Sea vessel utilization for the fourth quarter of 2014 was 69%, compared to 99% in the third quarter of 2014. The Skandi Constructor completed its regulatory dry dock during December, and the Seawell entered dry dock for its refit project in December. - Robotics revenues decreased 39% in the fourth quarter of 2014 from revenues in the third quarter of 2014, primarily due to a decline in utilized vessel days. For the fourth quarter vessel utilization was 79% versus 90% in the third quarter of 2014. Spot vessel utilization for the fourth quarter decreased 136 days (from 197 to 61 days) over the third quarter of 2014.
Other Expenses
-
Selling, general and administrative expenses were 11.1% of revenue in
the fourth quarter of 2014, 5.8% of revenue in the third quarter of
2014 and 7.6% of revenue in the fourth quarter of 2013. Our fourth
quarter 2014 expense includes an incremental
$3.3 million charge related to an accounting adjustment for our performance-based long-term incentive program. -
Net interest expense and other increased to
$4.0 million in the fourth quarter of 2014 from$3.3 million in the third quarter of 2014. Net interest expense increased by$1.1 million , while there was a$0.4 million gain in other expense in the fourth quarter of 2014. Net interest expense reflects$0.6 million in commitment fees for the new Nordea Term loan put in place during the quarter, while other expense reflects foreign exchange fluctuations in our non-U.S. dollar functional currencies.
Financial Condition and Liquidity
-
Our total liquidity at
December 31, 2014 was approximately$1.1 billion , consisting of$476 million in cash and cash equivalents and$584 million in unused capacity under our revolver. Consolidated net debt atDecember 31, 2014 was$75 million . Net debt to book capitalization atDecember 31, 2014 was 4%. (Net debt to book capitalization is a non-GAAP measure. See reconciliation below.) -
We incurred capital expenditures (including capitalized interest)
totaling
$126 million in the fourth quarter of 2014, compared to$68 million in the third quarter of 2014 and$56 million in the fourth quarter of 2013. For the years endedDecember 31, 2014 and 2013, capital expenditures totaled$368 million and$370 million , respectively.
Conference Call Information
Further details are provided in the presentation for Helix’s quarterly
conference call to review its fourth quarter 2014 results (see the
“Investor Relations” page of Helix’s website, www.HelixESG.com).
The call, scheduled for
About Helix
Reconciliation of Non-GAAP Financial Measures
Management evaluates Company performance and financial condition using certain non-GAAP metrics, primarily Adjusted EBITDA from continuing operations, net debt and net debt to book capitalization. We calculate Adjusted EBITDA from continuing operations as earnings before net interest expense and other, taxes, depreciation and amortization. Net debt is calculated as the sum of financial debt less cash and cash equivalents on hand. Net debt to book capitalization is calculated by dividing net debt by the sum of net debt, convertible preferred stock and shareholders’ equity. These non-GAAP measures are useful to investors and other internal and external users of our financial statements in evaluating our operating performance because they are widely used by investors in our industry to measure a company’s operating performance without regard to items which can vary substantially from company to company, and help investors meaningfully compare our results from period to period. Adjusted EBITDA should not be considered in isolation or as a substitute for, but instead is supplemental to, income from operations, net income or other income data prepared in accordance with GAAP. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, our reported results prepared in accordance with GAAP. Users of this financial information should consider the types of events and transactions which are excluded.
Forward-Looking Statements
This press release contains forward-looking statements that involve
risks, uncertainties and assumptions that could cause our results to
differ materially from those expressed or implied by such
forward-looking statements. All statements, other than statements of
historical fact, are "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995, including, without
limitation, any statements regarding our strategy; any statements
regarding future utilization; any projections of financial items; future
operations expenditures; any statements regarding the plans, strategies
and objectives of management for future operations; any statement
concerning developments; any statements regarding future economic
conditions or performance; any statements of expectation or belief; and
any statements of assumptions underlying any of the foregoing. The
forward-looking statements are subject to a number of known and unknown
risks, uncertainties and other factors including but not limited to the
performance of contracts by suppliers, customers and partners; actions
by governmental and regulatory authorities; operating hazards and
delays; our ultimate ability to realize current backlog; employee
management issues; complexities of global political and economic
developments; geologic risks; volatility of oil and gas prices and other
risks described from time to time in our reports filed with the
From time to time we provide information about Helix on Twitter (@Helix_ESG)
and
HELIX ENERGY SOLUTIONS GROUP, INC. | |||||||||||||||||
Comparative Condensed Consolidated Statements of Operations | |||||||||||||||||
Three Months Ended Dec. 31, | Twelve Months Ended Dec. 31, | ||||||||||||||||
(in thousands, except per share data) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||
Net revenues | $ | 207,160 | $ | 226,837 | $ | 1,107,156 | $ | 876,561 | |||||||||
Cost of sales | 174,355 | 155,673 | 763,120 | 615,876 | |||||||||||||
Gross profit | 32,805 | 71,164 | 344,036 | 260,685 | |||||||||||||
Loss on commodity derivative contracts | - | - | - | (14,113 | ) | ||||||||||||
Gain (loss) on disposition of assets, net | (178 | ) | - | 10,240 | 14,727 | ||||||||||||
Selling, general and administrative expenses | (22,906 | ) | (17,224 | ) | (92,520 | ) | (82,265 | ) | |||||||||
Income from operations | 9,721 | 53,940 | 261,756 | 179,034 | |||||||||||||
Equity in earnings of investments | 170 | 815 | 879 | 2,965 | |||||||||||||
Other income - oil and gas | 1,222 | 800 | 16,931 | 6,581 | |||||||||||||
Net interest expense and other | (3,960 | ) | (2,756 | ) | (17,045 | ) | (44,992 | ) | |||||||||
Income before income taxes | 7,153 | 52,799 | 262,521 | 143,588 | |||||||||||||
Income tax provision (benefit) | (807 | ) | 15,534 | 66,971 | 31,612 | ||||||||||||
Net income from continuing operations | 7,960 | 37,265 | 195,550 | 111,976 | |||||||||||||
Income from discontinued operations, net of tax | - | - | - | 1,073 | |||||||||||||
Net income, including noncontrolling interests | 7,960 | 37,265 | 195,550 | 113,049 | |||||||||||||
Less net income applicable to noncontrolling interests | - | (762 | ) | (503 | ) | (3,127 | ) | ||||||||||
Net income applicable to Helix | $ | 7,960 | $ | 36,503 | $ | 195,047 | $ | 109,922 | |||||||||
Weighted Avg. Common Shares Outstanding: | |||||||||||||||||
Basic | 105,005 | 105,018 | 105,029 | 105,032 | |||||||||||||
Diluted | 105,005 | 105,159 | 105,045 | 105,184 | |||||||||||||
Basic earnings per share of common stock: | |||||||||||||||||
Continuing operations | $ | 0.08 | $ | 0.35 | $ | 1.85 | $ | 1.03 | |||||||||
Discontinued operations | - | - | - | 0.01 | |||||||||||||
Net income per share of common stock | $ | 0.08 | $ | 0.35 | $ | 1.85 | $ | 1.04 | |||||||||
Diluted earnings per share of common stock: | |||||||||||||||||
Continuing operations | $ | 0.08 | $ | 0.35 | $ | 1.85 | $ | 1.03 | |||||||||
Discontinued operations | - | - | - | 0.01 | |||||||||||||
Net income per share of common stock | $ | 0.08 | $ | 0.35 | $ | 1.85 | $ | 1.04 |
Comparative Condensed Consolidated Balance Sheets | |||||||||||||||||||
ASSETS | LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||||||||||||
(in thousands) | Dec. 31, 2014 | Dec. 31, 2013 | (in thousands) | Dec. 31, 2014 | Dec. 31, 2013 | ||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||
Current Assets: | Current Liabilities: | ||||||||||||||||||
Cash and equivalents (1) | $ | 476,492 | $ | 478,200 | Accounts payable | $ | 83,403 | $ | 72,602 | ||||||||||
Accounts receivable, net | 135,300 | 184,165 | Accrued liabilities | 104,923 | 96,482 | ||||||||||||||
Current deferred tax assets | 31,180 | 51,573 | Income tax payable | 9,143 | 760 | ||||||||||||||
Other current assets | 51,301 | 29,709 | Current maturities of L-T debt (1) | 28,144 | 20,376 | ||||||||||||||
Total Current Assets | 694,273 | 743,647 | Total Current Liabilities | 225,613 | 190,220 | ||||||||||||||
Property & equipment, net | 1,735,384 | 1,532,217 | Long-term debt (1) | 523,228 | 545,776 | ||||||||||||||
Equity investments | 149,623 | 157,919 | Deferred tax liabilities | 260,275 | 265,879 | ||||||||||||||
Goodwill | 62,146 | 63,230 | Other non-current liabilities | 38,108 | 18,295 | ||||||||||||||
Other assets, net | 59,272 | 47,267 | Shareholders' equity (1) | 1,653,474 | 1,524,110 | ||||||||||||||
Total Assets | $ | 2,700,698 | $ | 2,544,280 | Total Liabilities & Equity | $ | 2,700,698 | $ | 2,544,280 | ||||||||||
(1) Net debt to book capitalization - 4% at December 31, 2014. Calculated as total debt less cash and equivalents ($74,880) divided by sum of total net debt and shareholders' equity ($1,728,354). |
Helix Energy Solutions Group, Inc. | ||||||||||||||||||||
Reconciliation of Non GAAP Measures | ||||||||||||||||||||
Three and Twelve Months Ended December 31, 2014 | ||||||||||||||||||||
Earnings Release: |
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Reconciliation From Net Income from Continuing Operations to Adjusted EBITDA: |
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Twelve Months | ||||||||||||||||||||
4Q14 | 4Q13 | 3Q14 | 2014 | 2013 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Net income from continuing operations | $ | 7,960 | $ | 37,265 | $ | 75,586 | $ | 195,550 | $ | 111,976 | ||||||||||
Adjustments: | ||||||||||||||||||||
Income tax provision (benefit) | (807 | ) | 15,534 | 29,832 | 66,971 | 31,612 | ||||||||||||||
Net interest expense and other | 3,960 | 2,756 | 3,258 | 17,045 | 44,992 | |||||||||||||||
Depreciation and amortization | 28,071 | 26,993 | 28,421 | 109,345 | 98,535 | |||||||||||||||
EBITDA from continuing operations | 39,184 | 82,548 | 137,097 | 388,911 | 287,115 | |||||||||||||||
Adjustments: | ||||||||||||||||||||
Noncontrolling interests | - | (999 | ) | - | (661 | ) | (4,077 | ) | ||||||||||||
(Gain) loss on disposition of assets, net | 178 | - | - | (10,240 | ) | (14,727 | ) | |||||||||||||
Adjusted EBITDA from continuing operations | $ | 39,362 | $ | 81,549 | $ | 137,097 | $ | 378,010 | $ | 268,311 | ||||||||||
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We calculate adjusted EBITDA from continuing operations as earnings before net interest expense and other, taxes and depreciation and amortization. This non-GAAP measure is useful to investors and other internal and 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 which can vary substantially from company to company and help investors meaningfully compare our results from period to period. Adjusted EBITDA should not be considered in isolation or as a substitute for, but instead is supplemental to, income from operations, net income or other income data prepared in accordance with GAAP. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to our reported results prepared in accordance with GAAP. Users of this financial information should consider the types of events and transactions which are excluded. |
Source:
Helix Energy Solutions Group, Inc.
Terrence Jamerson, 281-618-0400
Director,
Finance & Investor Relations