Press Releases
Helix reported adjusted EBITDA1 of
1Adjusted EBITDA is a non-GAAP measure. See reconciliation below.
Summary of Results |
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Three Months Ended |
Six Months Ended | |||||||||||||||||||||
6/30/2016 | 6/30/2015 | 3/31/2016 | 6/30/2016 | 6/30/2015 | ||||||||||||||||||
Revenues | $ | 107,267 | $ | 166,016 | $ | 91,039 | $ | 198,306 | $ | 355,657 | ||||||||||||
Gross Profit (Loss) | $ | 5,658 | $ | 24,208 | $ | (16,930 | ) | $ | (11,272 | ) | $ | 59,155 | ||||||||||
5 | % | 15 | % | -19 | % | -6 | % | 17 | % | |||||||||||||
Net Income (Loss) | $ | (10,671 | ) | $ | (2,635 | ) | $ | (27,823 | ) | $ | (38,494 | ) | $ | 17,007 | ||||||||
Diluted Earnings (Loss) Per Share | $ | (0.10 | ) | $ | (0.03 | ) | $ | (0.26 | ) | $ | (0.36 | ) | $ | 0.16 | ||||||||
Adjusted EBITDA1 | $ | 14,932 | $ | 35,689 | $ | 1,022 | $ | 15,954 | $ | 87,053 | ||||||||||||
1Adjusted EBITDA is a non-GAAP measure. See reconciliation below. |
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Segment Information, Operational and
Financial Highlights |
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Three Months Ended | |||||||||||||
6/30/2016 | 6/30/2015 | 3/31/2016 | |||||||||||
Revenues: | |||||||||||||
Well Intervention | $ | 59,919 | $ | 85,675 | $ | 46,056 | |||||||
Robotics | 38,914 | 75,101 | 31,994 | ||||||||||
Production Facilities | 18,957 | 20,293 | 18,482 | ||||||||||
Intercompany Eliminations | (10,523 | ) | (15,053 | ) | (5,493 | ) | |||||||
Total | $ | 107,267 | $ | 166,016 | $ | 91,039 | |||||||
Income (Loss) from Operations: | |||||||||||||
Well Intervention | $ | (538 | ) | $ | 4,135 | $ | (16,688 | ) | |||||
Robotics | (8,823 | ) | 4,303 | (12,750 | ) | ||||||||
Production Facilities | 9,730 | 8,444 | 7,183 | ||||||||||
Corporate / Other | (9,827 | ) | (9,009 | ) | (8,669 | ) | |||||||
Intercompany Eliminations | 163 | (199 | ) | 168 | |||||||||
Total | $ | (9,295 | ) | $ | 7,674 | $ | (30,756 | ) | |||||
Business Segment Results
-
Well Intervention revenues increased 30% in the second quarter of 2016
from revenues in the first quarter of 2016. Overall Well Intervention
vessel utilization in the second quarter of 2016 increased to 54% from
23% in the first quarter of 2016. The Q4000 utilization was 99%
in the second quarter of 2016 compared to 100% in the first quarter of
2016. The Q5000 utilization was 100% after going on contracted
rates mid-May compared to being idle in the first quarter of 2016. In
the
North Sea , the Well Enhancer utilization increased to 75% in the second quarter of 2016 from 13% in the first quarter of 2016. The Seawell was reactivated in early June and utilization increased to 23% in the second quarter of 2016 compared to being idle in the first quarter of 2016. The Skandi Constructor was idle the entire quarter and remained warm stacked. The two intervention riser systems were idle in the second quarter compared to utilization of 60% in the first quarter. -
Robotics revenues increased 22% in the second quarter of 2016 compared
to the first quarter of 2016. Chartered vessel utilization increased
to 61% in the second quarter of 2016 from 52% in the first quarter of
2016, and ROV asset utilization increased to 48% in the second quarter
of 2016 from 39% in the first quarter of 2016. The increase in revenue
and gross profit was driven by increased seasonal activity in the
North Sea .
Other Expenses
-
Selling, general and administrative expenses were
$15.0 million , 13.9% of revenue, in the second quarter of 2016 compared to$13.8 million , 15.2% of revenue, in the first quarter of 2016. -
Net interest expense decreased to
$7.5 million in the second quarter of 2016 from$10.7 million in the first quarter of 2016. Interest expense in the first quarter of 2016 includes a$2.5 million charge to accelerate a pro-rata portion of the deferred debt issuance costs associated with the reduction of revolver capacity. -
We recorded a
$0.3 million gain associated with the repurchase of$7.3 million in aggregate principal amount of our Convertible Senior Notes inJune 2016 . -
Other income decreased to
$1.3 million in the second quarter of 2016 from$1.9 million in the first quarter of 2016. The decrease in other income for the quarter was primarily driven by unrealized losses on our foreign currency derivative contracts that were not designated as hedges, offset in part by foreign currency gains associated with our non-U.S. dollar functional currencies.
Financial Condition and Liquidity
-
In
April 2016 , we launched an at-the-market (“ATM”) program for the sale of up to$50 million of common stock. As ofJune 30, 2016 , we sold a total of 5,081,339 shares of our common stock under the ATM program for$40.5 million at an average of$7.98 per share and received proceeds of$38.8 million , net of transaction costs. -
Our total liquidity at
June 30, 2016 was approximately$543 million , consisting of$492 million in cash and cash equivalents and$51 million in available capacity under our revolver. Consolidated long-term debt decreased to$711 million in the second quarter of 2016 compared to$732 million in the first quarter of 2016. Consolidated net debt atJune 30, 2016 was$219 million . Net debt to book capitalization atJune 30, 2016 was 15%. (Net debt and net debt to book capitalization are non-GAAP measures. See reconciliation below.) -
We incurred capital expenditures (including capitalized interest)
totaling
$32 million in the second quarter of 2016 compared to$21 million in the first quarter of 2016 and$197 million in the second quarter of 2015.
Conference Call Information
Further details are provided in the presentation for Helix’s quarterly
conference call to review its second quarter 2016 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 EBITDA, Adjusted EBITDA, net debt and net debt to book capitalization. We define EBITDA as earnings before income taxes, net interest expense, gain on repurchase of long-term debt, net other income or expense, and depreciation and amortization expense. To arrive at our measure of Adjusted EBITDA, we include realized losses from the cash settlements of our ineffective foreign currency derivative contracts, which are excluded from EBITDA as a component of net other income or expense. Net debt is calculated as total long-term debt less cash and cash equivalents. Net debt to book capitalization is calculated by dividing net debt by the sum of net debt and shareholders’ equity. We use EBITDA to monitor and facilitate external comparison of our business results to those of others in our industry, to analyze and evaluate financial strategic planning decisions regarding future investments and acquisitions, to plan and evaluate operating budgets, and in certain cases, to report our results to the holders of our debt as required by our debt covenants. We believe that our measure of EBITDA provides useful information to the public regarding our ability to service debt and fund capital expenditures and may help our investors understand our operating performance and compare our results to other companies that have different financing, capital and tax structures. Other companies may calculate their measures of EBITDA and Adjusted EBITDA differently from the way we do, which may limit their usefulness as comparative measures. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for, but instead are 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 that are excluded from these measures.
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 visibility and future utilization; any projections of
financial items; future operations expenditures; any statements
regarding the plans, strategies and objectives of management for future
operations; any statements 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
Social Media
From time to time we provide information about Helix on Twitter (@Helix_ESG)
and
HELIX ENERGY SOLUTIONS GROUP, INC. |
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Comparative Condensed Consolidated Statements of Operations | |||||||||||||||||||||||||
Three Months Ended Jun. 30, | Six Months Ended Jun. 30, | ||||||||||||||||||||||||
(in thousands, except per share data) | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||||||
Net revenues | $ | 107,267 | $ | 166,016 | $ | 198,306 | $ | 355,657 | |||||||||||||||||
Cost of sales | 101,609 | 141,808 | 209,578 | 296,502 | |||||||||||||||||||||
Gross profit (loss) | 5,658 | 24,208 | (11,272 | ) | 59,155 | ||||||||||||||||||||
Selling, general and administrative expenses | (14,953 | ) | (16,534 | ) | (28,779 | ) | (29,153 | ) | |||||||||||||||||
Income (loss) from operations | (9,295 | ) | 7,674 | (40,051 | ) | 30,002 | |||||||||||||||||||
Equity in losses of investments | (121 | ) | (323 | ) | (244 | ) | (302 | ) | |||||||||||||||||
Net interest expense | (7,480 | ) | (5,235 | ) | (18,164 | ) | (9,305 | ) | |||||||||||||||||
Gain on repurchase of long-term debt | 302 | - | 302 | - | |||||||||||||||||||||
Other income (expense), net | 1,308 | (5,036 | ) | 3,188 | (6,192 | ) | |||||||||||||||||||
Other income - oil and gas | 396 | 899 | 2,968 | 3,825 | |||||||||||||||||||||
Income (loss) before income taxes | (14,890 | ) | (2,021 | ) | (52,001 | ) | 18,028 | ||||||||||||||||||
Income tax provision (benefit) | (4,219 | ) | 614 | (13,507 | ) | 1,021 | |||||||||||||||||||
Net income (loss) | $ | (10,671 | ) | $ | (2,635 | ) | $ | (38,494 | ) | $ | 17,007 | ||||||||||||||
Earnings (loss) per share of common stock: | |||||||||||||||||||||||||
Basic |
$ | (0.10 | ) | $ | (0.03 | ) | $ | (0.36 | ) | $ | 0.16 | ||||||||||||||
Diluted |
$ | (0.10 | ) | $ | (0.03 | ) | $ | (0.36 | ) | $ | 0.16 | ||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||||
Basic | 107,767 | 105,357 | 106,838 | 105,324 | |||||||||||||||||||||
Diluted | 107,767 | 105,357 | 106,838 | 105,324 | |||||||||||||||||||||
Comparative Condensed Consolidated Balance Sheets | ||||||||||||||||||||||||||||||
ASSETS | LIABILITIES & SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||
(in thousands) | Jun. 30, 2016 | Dec. 31, 2015 | (in thousands) | Jun. 30, 2016 | Dec. 31, 2015 | |||||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||||
Current Assets: | Current Liabilities: | |||||||||||||||||||||||||||||
Cash and cash equivalents (1) | $ | 492,190 | $ | 494,192 | Accounts payable | $ | 48,013 | $ | 65,370 | |||||||||||||||||||||
Accounts receivable, net | 76,104 | 96,752 | Accrued liabilities | 71,009 | 71,641 | |||||||||||||||||||||||||
Current deferred tax assets | 14,211 | 53,573 | Income tax payable | - | 2,261 | |||||||||||||||||||||||||
Income tax receivable | 21,311 | - | Current maturities of long-term debt (1) | 71,786 | 71,640 | |||||||||||||||||||||||||
Other current assets | 41,465 | 39,518 | Total Current Liabilities | 190,808 | 210,912 | |||||||||||||||||||||||||
Total Current Assets | 645,281 | 684,035 | ||||||||||||||||||||||||||||
Property & equipment, net | 1,581,962 | 1,603,009 | Long-term debt (1) | 638,985 | 677,695 | |||||||||||||||||||||||||
Equity investments | - | 26,200 | Deferred tax liabilities | 166,557 | 180,974 | |||||||||||||||||||||||||
Goodwill | 45,107 | 45,107 | Other non-current liabilities | 52,829 | 51,415 | |||||||||||||||||||||||||
Other assets, net | 42,018 | 41,608 | Shareholders' equity (1) | 1,265,189 | 1,278,963 | |||||||||||||||||||||||||
Total Assets | $ | 2,314,368 | $ | 2,399,959 | Total Liabilities & Equity | $ | 2,314,368 | $ | 2,399,959 | |||||||||||||||||||||
(1) Net debt to book capitalization - 15% at June 30, 2016. Calculated as net debt (total long-term debt less | ||||||||||||||||||||||||||||||
cash and cash equivalents - $218,581) divided by the sum of net debt and shareholders' equity ($1,483,770). | ||||||||||||||||||||||||||||||
Helix Energy Solutions Group, Inc. | |||||||||||||||||||||
Reconciliation of Non-GAAP Measures | |||||||||||||||||||||
Earnings Release: | |||||||||||||||||||||
Reconciliation from Net Income (Loss) to Adjusted EBITDA: | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
6/30/2016 | 6/30/2015 | 3/31/2016 | 6/30/2016 | 6/30/2015 | |||||||||||||||||
(in thousands) | |||||||||||||||||||||
Net income (loss) | $ | (10,671 | ) | $ | (2,635 | ) | $ | (27,823 | ) | $ | (38,494 | ) | $ | 17,007 | |||||||
Adjustments: | |||||||||||||||||||||
Income tax provision (benefit) | (4,219 | ) | 614 | (9,288 | ) | (13,507 | ) | 1,021 | |||||||||||||
Net interest expense | 7,480 | 5,235 | 10,684 | 18,164 | 9,305 | ||||||||||||||||
Gain on repurchase of long-term debt | (302 | ) | - | - | (302 | ) | - | ||||||||||||||
Other (income) expense, net | (1,308 | ) | 5,036 | (1,880 | ) | (3,188 | ) | 6,192 | |||||||||||||
Depreciation and amortization | 25,674 | 27,439 | 31,565 | 57,239 | 53,528 | ||||||||||||||||
EBITDA | 16,654 | 35,689 | 3,258 | 19,912 | 87,053 | ||||||||||||||||
Adjustments: | |||||||||||||||||||||
Realized losses from cash settlements of ineffective foreign currency derivative contracts | (1,722 | ) | - | (2,236 | ) | (3,958 | ) | - | |||||||||||||
Adjusted EBITDA | $ | 14,932 | $ | 35,689 | $ | 1,022 | $ | 15,954 | $ | 87,053 | |||||||||||
We define EBITDA as earnings before income taxes, net interest expense, gain on repurchase of long-term debt, net other income or expense, and depreciation and amortization expense. To arrive at our measure of Adjusted EBITDA, we include realized losses from the cash settlements of our ineffective foreign currency derivative contracts, which are excluded from EBITDA as a component of net other income or expense. We use EBITDA to monitor and facilitate external comparison of our business results to those of others in our industry, to analyze and evaluate financial strategic planning decisions regarding future investments and acquisitions, to plan and evaluate operating budgets, and in certain cases, to report our results to the holders of our debt as required by our debt covenants. We believe that our measure of EBITDA provides useful information to the public regarding our ability to service debt and fund capital expenditures and may help our investors understand our operating performance and compare our results to other companies that have different financing, capital and tax structures. Other companies may calculate their measures of EBITDA and Adjusted EBITDA differently from the way we do, which may limit their usefulness as comparative measures. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for, but instead are 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 that are excluded from these measures. |
View source version on businesswire.com: http://www.businesswire.com/news/home/20160719006694/en/
Source:
Helix Energy Solutions Group, Inc.
Erik Staffeldt, 281-618-0400
Vice
President - Finance & Accounting