Tidewater Reports Fourth Quarter and Year End Results For Fiscal 2017
- 158
PR Newswire
NEW ORLEANS, June 12, 2017
NEW ORLEANS, June 12, 2017 /PRNewswire/ -- Tidewater Inc. (NYSE:TDW) announced today a fourth quarter net loss for the period ended March 31, 2017, of $94.9 million, or $2.01 per common share, on revenues of $160.7 million. For fiscal year ended March 31, 2017, the company's net loss was $660.1 million, or $14.02 per common share, on revenues of $601.6 million. For the prior fiscal year's fourth quarter ended March 31, 2016, the company's net loss was $81.8 million, or $1.74 per common share, on revenues of $184.2 million. For fiscal year ended March 31, 2016, the company's net loss was $160.2 million, or $3.41 per common share, on revenues of $979.1 million. During fiscal years ended March 31, 2017 and 2016, the company generated net cash from operating activities of $29.8 million and $253.4 million, respectively, and generated net cash in investing activities of $14.9 million and used net cash in investing activities of $135.0 million, respectively.
Included in the net loss for the 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 consideration of noncontrolling interests, or $0.67 per share) of revenue related to the early termination of a long-term vessel charter contract.
Included in the net loss for the fiscal year ended March 31, 2017 were the following:
- $484.7 million ($484.7 million after-tax, or $10.30 per share) in non-cash asset impairment charges that resulted from impairment reviews undertaken throughout fiscal 2017.
- $29.0 million ($29.0 million after-tax, or $0.62 per share) of general and administrative expenses related to debt renegotiations.
- $39.1 million ($31.3 million after-tax and consideration of noncontrolling interests, or $0.67 per share) of revenue related to the early termination of a long-term vessel charter contract.
Included in the net loss for the prior fiscal year's quarter ended March 31, 2016 were the following:
- $55.5 million ($40.7 million after-tax, or $0.87 per share) in non-cash asset impairment charges that resulted from impairment reviews undertaken during the March 2016 quarter.
- $8.7 million ($8.7 million after-tax, or $0.18 per share) of foreign exchange losses which is included in Equity in net earnings (losses) of unconsolidated companies and related to our Angola joint venture, Sonatide.
Included in the net loss for the prior fiscal year ended March 31, 2016 were the following:
- $117.3 million ($98.6 million after-tax, or $2.10 per share) in non-cash asset impairment charges that resulted from impairment reviews undertaken throughout fiscal 2016.
- $24.1 million ($24.1 million after-tax, or $0.51 per share) of foreign exchange losses which is included in Equity in net earnings (losses) of unconsolidated companies and related to our Angola joint venture, Sonatide.
- A $7.6 million ($6.3 million after-tax, or $0.13 per share) restructuring charge related to severance and other termination costs resulting from right-sizing efforts during the September 2015 quarter.
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 the ("Debtors") 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 (the "Bankruptcy Cases," and such court, the "Bankruptcy Court"), seeking approval of a prepackaged plan of restructuring (the "Prepackaged Plan").
On May 19, 2017, the Bankruptcy Court set a combined hearing to consider approval of the Debtors' disclosure statement and confirmation of the Prepackaged Plan for June 28, 2017. If the Prepackaged Plan is approved by the Bankruptcy Court within the time frame we currently expect, the Prepackaged Plan will likely become effective in July 2017, at which point or shortly thereafter the Debtors would emerge from bankruptcy, however, there can be no assurance that the effectiveness of the Prepackaged Plan will occur on such date, or at all. 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-K, which is expected to be filed with the SEC shortly after the issuance of this press release.
Given the pendency of the Bankruptcy Cases, the company will not be hosting an earnings conference call to discuss fiscal 2017 financial results. However, we expect to resume holding quarterly earnings conference calls following our emergence from bankruptcy.
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. | ||||||||||||||||
|
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) | ||||||||||||||||
|
(In thousands, except share and per share data) | ||||||||||||||||
|
Quarter Ended |
Year Ended |
|||||||||||||||
|
March 31, |
March 31, |
|||||||||||||||
|
2017 |
2016 |
2017 |
2016 |
|||||||||||||
|
Revenues: |
||||||||||||||||
|
Vessel revenues |
$ |
156,905 |
180,048 |
583,816 |
955,400 |
|||||||||||
|
Other operating revenues |
3,844 |
4,126 |
17,795 |
23,662 |
||||||||||||
|
160,749 |
184,174 |
601,611 |
979,062 |
|||||||||||||
|
Costs and expenses: |
||||||||||||||||
|
Vessel operating costs |
80,845 |
98,146 |
359,171 |
561,133 |
||||||||||||
|
Costs of other operating revenues |
2,689 |
3,187 |
12,729 |
18,811 |
||||||||||||
|
General and administrative |
41,727 |
36,974 |
145,879 |
153,811 |
||||||||||||
|
Vessel operating leases |
8,443 |
8,337 |
33,766 |
33,662 |
||||||||||||
|
Depreciation and amortization |
37,592 |
45,251 |
167,291 |
182,309 |
||||||||||||
|
(Gain) loss on asset dispositions, net |
(6,064) |
(6,692) |
(24,099) |
(26,037) |
||||||||||||
|
Asset impairments |
64,857 |
55,540 |
484,727 |
117,311 |
||||||||||||
|
Restructuring charge |
— |
— |
— |
7,586 |
||||||||||||
|
230,089 |
240,743 |
1,179,464 |
1,048,586 |
|||||||||||||
|
Operating loss |
(69,340) |
(56,569) |
(577,853) |
(69,524) |
||||||||||||
|
Other income (expenses): |
||||||||||||||||
|
Foreign exchange gain (loss) |
664 |
(1,645) |
(1,638) |
(5,403) |
||||||||||||
|
Equity in net earnings (losses) of unconsolidated companies |
2,841 |
(6,511) |
5,710 |
(13,581) |
||||||||||||
|
Interest income and other, net |
1,588 |
949 |
5,193 |
2,703 |
||||||||||||
|
Interest and other debt costs, net |
(21,008) |
(14,011) |
(75,026) |
(53,752) |
||||||||||||
|
(15,915) |
(21,218) |
(65,761) |
(70,033) |
|||||||||||||
|
Loss before income taxes |
(85,255) |
(77,787) |
(643,614) |
(139,557) |
||||||||||||
|
Income tax (benefit) expense |
1,717 |
3,823 |
6,397 |
20,819 |
||||||||||||
|
Net Loss |
$ |
(86,972) |
(81,610) |
(650,011) |
(160,376) |
|||||||||||
|
Less: Net income (loss) attributable to noncontrolling interests |
7,883 |
177 |
10,107 |
(193) |
||||||||||||
|
Net loss attributable to Tidewater Inc. |
$ |
(94,855) |
(81,787) |
(660,118) |
(160,183) |
|||||||||||
|
Basic loss per common share |
$ |
(2.01) |
(1.74) |
(14.02) |
(3.41) |
|||||||||||
|
Diluted loss per common share |
$ |
(2.01) |
(1.74) |
(14.02) |
(3.41) |
|||||||||||
|
Weighted average common shares outstanding |
47,080,783 |
46,983,430 |
47,071,066 |
46,981,102 |
||||||||||||
|
Dilutive effect of stock options and restricted stock |
— |
— |
— |
— |
||||||||||||
|
Adjusted weighted average common shares |
47,080,783 |
46,983,430 |
47,071,066 |
46,981,102 |
||||||||||||
|
TIDEWATER INC. | ||||||||
|
CONSOLIDATED BALANCE SHEETS | ||||||||
|
March 31, 2017 and 2016 |
||||||||
|
(In thousands, except share and par value data) |
||||||||
|
ASSETS |
2017 |
2016 |
||||||
|
Current assets: |
||||||||
|
Cash and cash equivalents |
$ |
706,404 |
678,438 |
|||||
|
Trade and other receivables, less allowance for doubtful accounts of $16,165 in 2017 and $11,450 in 2016 |
123,262 |
228,113 |
||||||
|
Due from affiliate |
262,652 |
338,595 |
||||||
|
Marine operating supplies |
30,560 |
33,413 |
||||||
|
Other current assets |
18,409 |
44,755 |
||||||
|
Total current assets |
1,141,287 |
1,323,314 |
||||||
|
Investments in, at equity, and advances to unconsolidated companies |
45,115 |
37,502 |
||||||
|
Net properties and equipment |
2,864,762 |
3,551,291 |
||||||
|
Other assets |
139,535 |
71,686 |
||||||
|
Total assets |
$ |
4,190,699 |
4,983,793 |
|||||
|
LIABILITIES AND EQUITY |
||||||||
|
Current liabilities: |
||||||||
|
Accounts payable |
$ |
31,599 |
49,130 |
|||||
|
Accrued expenses |
78,121 |
91,611 |
||||||
|
Due to affiliate |
132,857 |
187,971 |
||||||
|
Accrued property and liability losses |
3,583 |
3,321 |
||||||
|
Current portion of long-term debt |
2,034,124 |
2,045,516 |
||||||
|
Other current liabilities |
48,429 |
74,825 |
||||||
|
Total current liabilities |
2,328,713 |
2,452,374 |
||||||
|
Deferred income taxes |
46,013 |
34,841 |
||||||
|
Accrued property and liability losses |
10,209 |
9,478 |
||||||
|
Other liabilities and deferred credits |
154,705 |
181,546 |
||||||
|
Commitments and Contingencies |
||||||||
|
Equity: |
||||||||
|
Common stock of $0.10 par value, 125,000,000 shares authorized, issued 47,121,304 shares at March 31, 2017 and 47,067,715 shares at March 31, 2016 |
4,712 |
4,707 |
||||||
|
Additional paid-in capital |
165,221 |
166,604 |
||||||
|
Retained earnings |
1,475,329 |
2,135,075 |
||||||
|
Accumulated other comprehensive loss |
(10,344) |
(6,866) |
||||||
|
Total stockholders' equity |
1,634,918 |
2,299,520 |
||||||
|
Noncontrolling interests |
16,141 |
6,034 |
||||||
|
Total equity |
1,651,059 |
2,305,554 |
||||||
|
Total liabilities and equity |
$ |
4,190,699 |
4,983,793 |
|||||
|
TIDEWATER INC. | ||||||||||||||||
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||||||||||||||
|
(In thousands) | ||||||||||||||||
|
Quarter Ended |
Year Ended |
|||||||||||||||
|
March 31, |
March 31, |
|||||||||||||||
|
2017 |
2016 |
2017 |
2016 |
|||||||||||||
|
Net loss |
$ |
(86,972) |
(81,610) |
(650,011) |
(160,376) |
|||||||||||
|
Other comprehensive income (loss): |
||||||||||||||||
|
Unrealized gains (losses) on available for sale securities, net of tax of $61, ($239), $61 and ($239) |
(94) |
24 |
113 |
(443) |
||||||||||||
|
Change in loss on derivative contract, net of tax of $823, $77, $823 and $77 |
1,317 |
(395) |
1,530 |
143 |
||||||||||||
|
Change in supplemental executive retirement plan liability, net of tax of ($927), $1,264, ($927) and $1,264 |
(1,721) |
2,347 |
(1,721) |
2,347 |
||||||||||||
|
Change in pension plan minimum liability, net of tax of $215, $1,093, $215 and $1,093 |
399 |
2,029 |
399 |
2,029 |
||||||||||||
|
Change in other benefit plan minimum liability, net of tax of ($2,046), $5,081, ($2,046) and $5,081 |
(3,799) |
9,366 |
(3,799) |
9,436 |
||||||||||||
|
Total comprehensive loss |
$ |
(90,870) |
(68,239) |
(653,489) |
(146,864) |
|||||||||||
|
TIDEWATER INC. | ||||||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
|
Years Ended March 31, 2017, 2016 and 2015 |
||||||||||||
|
(In thousands) |
2017 |
2016 |
2015 |
|||||||||
|
Operating activities: |
||||||||||||
|
Net loss |
$ |
(650,011) |
(160,376) |
(65,349) |
||||||||
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
||||||||||||
|
Depreciation and amortization |
167,291 |
182,309 |
175,204 |
|||||||||
|
Provision (benefit) for deferred income taxes |
(2,200) |
(6,796) |
(72,389) |
|||||||||
|
(Gain) loss on asset dispositions, net |
(24,099) |
(26,037) |
(23,796) |
|||||||||
|
Asset impairments |
484,727 |
117,311 |
14,525 |
|||||||||
|
Goodwill impairment |
— |
— |
283,699 |
|||||||||
|
Equity in earnings (losses) of unconsolidated companies, net of dividends |
(7,613) |
28,704 |
(1,916) |
|||||||||
|
Compensation expense – stock based |
3,278 |
13,219 |
21,374 |
|||||||||
|
Excess tax (benefit) liability on stock options exercised |
4,927 |
1,605 |
1,784 |
|||||||||
|
Changes in assets and liabilities, net: |
||||||||||||
|
Trade and other receivables |
104,829 |
71,540 |
(43,537) |
|||||||||
|
Changes in due to/from affiliate, net |
20,829 |
84,084 |
108,588 |
|||||||||
|
Marine operating supplies |
2,285 |
13,672 |
6,148 |
|||||||||
|
Other current assets |
(12,523) |
5,976 |
2,794 |
|||||||||
|
Accounts payable |
(17,531) |
(4,881) |
(22,989) |
|||||||||
|
Accrued expenses |
(18,687) |
(53,143) |
(11,435) |
|||||||||
|
Accrued property and liability losses |
262 |
(348) |
38 |
|||||||||
|
Other current liabilities |
(26,658) |
(15,578) |
118 |
|||||||||
|
Other liabilities and deferred credits |
(2,657) |
231 |
4,875 |
|||||||||
|
Other, net |
3,372 |
1,868 |
(19,023) |
|||||||||
|
Net cash provided by operating activities |
29,821 |
253,360 |
358,713 |
|||||||||
|
Cash flows from investing activities: |
||||||||||||
|
Proceeds from sales of assets |
14,797 |
10,690 |
8,310 |
|||||||||
|
Proceeds from sale/leaseback of assets |
— |
— |
123,950 |
|||||||||
|
Additions to properties and equipment |
(25,499) |
(194,485) |
(364,194) |
|||||||||
|
Refunds from cancelled vessel construction contracts |
25,565 |
46,119 |
— |
|||||||||
|
Other |
— |
2,680 |
516 |
|||||||||
|
Net cash provided by (used in) investing activities |
14,863 |
(134,996) |
(231,418) |
|||||||||
|
Cash flows from financing activities: |
||||||||||||
|
Principal payments on long-term debt |
(10,069) |
(136,843) |
(97,823) |
|||||||||
|
Debt borrowings |
— |
656,338 |
138,488 |
|||||||||
|
Cash dividends |
— |
(35,388) |
(48,834) |
|||||||||
|
Repurchases of common stock |
— |
— |
(99,999) |
|||||||||
|
Other |
(6,649) |
(2,601) |
(918) |
|||||||||
|
Net cash (used in) provided by financing activities |
(16,718) |
481,506 |
(109,086) |
|||||||||
|
Net change in cash and cash equivalents |
27,966 |
599,870 |
18,209 |
|||||||||
|
Cash and cash equivalents at beginning of year |
678,438 |
78,568 |
60,359 |
|||||||||
|
Cash and cash equivalents at end of year |
$ |
706,404 |
678,438 |
78,568 |
||||||||
|
Supplemental disclosure of cash flow information: |
||||||||||||
|
Cash paid during the year for: |
||||||||||||
|
Interest, net of amounts capitalized |
$ |
70,687 |
50,729 |
49,390 |
||||||||
|
Income taxes |
$ |
26,916 |
51,585 |
74,310 |
||||||||
|
Supplemental disclosure of noncash investing activities: |
||||||||||||
|
Additions to properties and equipment |
$ |
5,047 |
— |
2,068 |
||||||||
|
TIDEWATER INC. | ||||||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF EQUITY | ||||||||||||||||||||||||
|
Years Ended March 31, 2017, 2016 and 2015 |
Common stock |
Additional paid-in capital |
Retained earnings |
Accumulated other comprehensiveloss |
Non controlling interest |
Total |
||||||||||||||||||
|
Balance at March 31, 2014 |
$ |
4,973 |
142,381 |
2,544,255 |
(12,225) |
5,987 |
2,685,371 |
|||||||||||||||||
|
Total comprehensive loss |
— |
— |
(65,190) |
(8,153) |
(159) |
(73,502) |
||||||||||||||||||
|
Stock option activity |
3 |
(691) |
— |
— |
— |
(688) |
||||||||||||||||||
|
Cash dividends declared ($1.00 per share) |
— |
— |
(49,127) |
— |
— |
(49,127) |
||||||||||||||||||
|
Retirement of common stock |
(284) |
— |
(99,715) |
— |
— |
(99,999) |
||||||||||||||||||
|
Amortization of restricted stock units |
17 |
15,270 |
— |
— |
— |
15,287 |
||||||||||||||||||
|
Amortization/cancellation of restricted stock awards |
(6) |
2,980 |
— |
— |
— |
2,974 |
||||||||||||||||||
|
Cash received from noncontrolling interests, net |
— |
— |
— |
— |
399 |
399 |
||||||||||||||||||
|
Balance at March 31, 2015 |
$ |
4,703 |
159,940 |
2,330,223 |
(20,378) |
6,227 |
2,480,715 |
|||||||||||||||||
|
Total comprehensive loss |
— |
— |
(160,183) |
13,512 |
(193) |
(146,864) |
||||||||||||||||||
|
Stock option activity |
— |
(278) |
— |
— |
— |
(278) |
||||||||||||||||||
|
Cash dividends declared ($.75 per share) |
— |
— |
(34,965) |
— |
— |
(34,965) |
||||||||||||||||||
|
Amortization of restricted stock units |
11 |
6,463 |
— |
— |
— |
6,474 |
||||||||||||||||||
|
Amortization/cancellation of restricted stock awards |
(7) |
479 |
— |
— |
— |
472 |
||||||||||||||||||
|
Balance at March 31, 2016 |
$ |
4,707 |
166,604 |
2,135,075 |
(6,866) |
6,034 |
2,305,554 |
|||||||||||||||||
|
Total comprehensive loss |
— |
— |
(660,118) |
(3,478) |
10,107 |
(653,489) |
||||||||||||||||||
|
Stock option activity |
— |
1,146 |
— |
— |
— |
1,146 |
||||||||||||||||||
|
Amortization/cancellation of restricted stock units |
5 |
(2,529) |
372 |
— |
— |
(2,152) |
||||||||||||||||||
|
Balance at March 31, 2017 |
$ |
4,712 |
165,221 |
1,475,329 |
(10,344) |
16,141 |
1,651,059 |
|||||||||||||||||
The company's vessel revenues and vessel operating costs and the related percentage of total vessel revenues for the quarters and the years ended March 31, 2017 and 2016 and for the quarter ended December 31, 2016, were as follows:
|
Quarter | |||||||||||||||||||||||||||
|
Quarter Ended |
Year Ended |
Ended | |||||||||||||||||||||||||
|
March 31, |
March 31, |
December 31, | |||||||||||||||||||||||||
|
(In thousands) |
2017 |
% |
2016 |
% |
2017 |
% |
2016 |
% |
2016 |
% | |||||||||||||||||
|
Vessel revenues: |
|||||||||||||||||||||||||||
|
Americas |
$ |
80,533 |
51% |
63,650 |
35% |
239,843 |
41% |
342,995 |
36% |
45,577 |
36% | ||||||||||||||||
|
Asia/Pacific |
5,951 |
4% |
9,791 |
6% |
25,568 |
4% |
89,045 |
9% |
5,586 |
4% | |||||||||||||||||
|
Middle East (A) |
20,727 |
13% |
24,163 |
13% |
89,050 |
15% |
111,356 |
12% |
20,647 |
17% | |||||||||||||||||
|
Africa/Europe (A) |
49,694 |
32% |
82,444 |
46% |
229,355 |
40% |
412,004 |
43% |
53,310 |
43% | |||||||||||||||||
|
Total vessel revenues |
$ |
156,905 |
100% |
180,048 |
100% |
583,816 |
100% |
955,400 |
100% |
125,120 |
100% | ||||||||||||||||
|
Vessel operating costs: |
|||||||||||||||||||||||||||
|
Crew costs |
$ |
41,829 |
27% |
55,549 |
31% |
190,471 |
33% |
303,219 |
32% |
43,384 |
35% | ||||||||||||||||
|
Repair and maintenance |
17,074 |
11% |
14,280 |
8% |
60,257 |
10% |
94,873 |
10% |
13,214 |
10% | |||||||||||||||||
|
Insurance and loss reserves |
(1,767) |
(1%) |
(1,230) |
(1%) |
10,008 |
2% |
8,585 |
1% |
2,142 |
2% | |||||||||||||||||
|
Fuel, lube and supplies |
9,279 |
6% |
10,366 |
6% |
38,009 |
7% |
61,992 |
6% |
7,782 |
6% | |||||||||||||||||
|
Other |
14,430 |
9% |
19,181 |
11% |
60,426 |
10% |
92,464 |
10% |
15,836 |
13% | |||||||||||||||||
|
Total vessel operating costs |
80,845 |
52% |
98,146 |
55% |
359,171 |
62% |
561,133 |
59% |
82,358 |
66% | |||||||||||||||||
|
Vessel operating margin (B) |
$ |
76,060 |
48% |
81,902 |
45% |
224,645 |
38% |
394,267 |
41% |
42,762 |
34% | ||||||||||||||||
Note (A): At the beginning of fiscal 2017 the company's operations in the Mediterranean Sea (based in Egypt) were transitioned from the company's previously disclosed Middle East/North Africa operations and included with the company's previously disclosed Sub-Saharan Africa/Europe operations as a result of management realignments. As such, the company now discloses these new segments as Middle East and Africa/Europe, respectively. The company's Americas and Asia/Pacific segments are not affected by this change. The new segment alignment is consistent with the company's chief operating decision maker's review of operating results for the purpose of allocating resources and assessing performance. Fiscal 2016 amounts have been recast to conform to the new segment alignment.
Note (B): The following table reconciles vessel operating margin as presented above to operating profit (loss) for the quarters and the years ended March 31, 2017 and 2016 and for the quarter ended December 31, 2016:
|
Quarter |
||||||||||||||||||||
|
Quarter Ended |
Year Ended |
Ended |
||||||||||||||||||
|
March 31, |
March 31, |
December 31, |
||||||||||||||||||
|
(In thousands) |
2017 |
2016 |
2017 |
2016 |
2016 |
|||||||||||||||
|
Vessel operating margin |
$ |
76,060 |
81,902 |
224,645 |
394,267 |
42,762 |
||||||||||||||
|
General and administrative expenses - vessel operations |
(19,445) |
(27,045) |
(88,306) |
(116,039) |
(20,608) |
|||||||||||||||
|
Vessel operating leases |
(8,443) |
(8,337) |
(33,766) |
(33,662) |
(8,441) |
|||||||||||||||
|
Depreciation and amortization - vessel operations |
(36,173) |
(42,427) |
(160,405) |
(170,428) |
(39,882) |
|||||||||||||||
|
Vessel operating profit (loss) |
$ |
11,999 |
4,093 |
(57,832) |
74,138 |
(26,169) |
||||||||||||||
The company's other operating profit (loss) for the quarters and the years ended March 31, 2017 and 2016 and for the quarter ended December 31, 2016, consists of the following:
|
Quarter |
||||||||||||||||||||
|
Quarter Ended |
Year Ended |
Ended |
||||||||||||||||||
|
March 31, |
March 31, |
December 31, |
||||||||||||||||||
|
(In thousands) |
2017 |
2016 |
2017 |
2016 |
2016 |
|||||||||||||||
|
Other operating revenues |
$ |
3,844 |
4,126 |
17,795 |
23,662 |
4,095 |
||||||||||||||
|
Costs of other marine revenues |
(2,689) |
(3,187) |
(12,729) |
(18,811) |
(2,714) |
|||||||||||||||
|
General and administrative expenses - other operating activities |
(525) |
(947) |
(2,184) |
(3,694) |
(410) |
|||||||||||||||
|
Depreciation and amortization - other operating activities |
(855) |
(1,436) |
(4,430) |
(5,721) |
(855) |
|||||||||||||||
|
Other operating profit (loss) |
$ |
(225) |
(1,444) |
(1,548) |
(4,564) |
116 |
||||||||||||||
The company's operating loss and other components of loss before income taxes and the related percentage of total revenues for the quarters and the years ended March 31, 2017 and 2016 and for the quarter ended December 31, 2016, were as follows:
|
Quarter Ended |
Year Ended |
Quarter Ended | |||||||||||||||||||
|
March 31, |
March 31, |
December 31, | |||||||||||||||||||
|
(In thousands) |
2017 |
% |
2016 |
% |
2017 |
% |
2016 |
% |
2016 |
% | |||||||||||
|
Vessel operating profit (loss): |
|||||||||||||||||||||
|
Americas (C) (D) |
$ |
30,618 |
19% |
11,026 |
6% |
18,873 |
3% |
52,966 |
5% |
(6,242) |
(5%) | ||||||||||
|
Asia/Pacific (C) |
(3,358) |
(2%) |
(5,809) |
(3%) |
(20,614) |
(3%) |
(1,687) |
(<1%) |
(5,586) |
(4%) | |||||||||||
|
Middle East |
(2,806) |
(2%) |
2,427 |
1% |
(4,696) |
(1%) |
7,325 |
1% |
(2,782) |
(2%) | |||||||||||
|
Africa/Europe |
(12,455) |
(8%) |
(3,551) |
(2%) |
(51,395) |
(9%) |
15,534 |
2% |
(11,559) |
(9%) | |||||||||||
|
11,999 |
7% |
4,093 |
2% |
(57,832) |
(10%) |
74,138 |
8% |
(26,169) |
(20%) | ||||||||||||
|
Other operating profit (loss) |
(225) |
(<1%) |
(1,444) |
(1%) |
(1,548) |
(<1%) |
(4,564) |
(<1%) |
116 |
<1% | |||||||||||
|
11,774 |
7% |
2,649 |
1% |
(59,380) |
(10%) |
69,574 |
8% |
(26,053) |
(20%) | ||||||||||||
|
Corporate general and |
(21,757) |
(14%) |
(8,982) |
(5%) |
(55,389) |
(10%) |
(34,078) |
(3%) |
(13,133) |
(10%) | |||||||||||
|
Corporate depreciation |
(564) |
(<1%) |
(1,388) |
(1%) |
(2,456) |
(<1%) |
(6,160) |
(1%) |
(565) |
(1%) | |||||||||||
|
Corporate expenses |
(22,321) |
(14%) |
(10,370) |
(6%) |
(57,845) |
(10%) |
(40,238) |
(4%) |
(13,698) |
(11%) | |||||||||||
|
Gain (loss) on asset dispositions, net |
6,064 |
3% |
6,692 |
4% |
24,099 |
4% |
26,037 |
3% |
6,139 |
5% | |||||||||||
|
Asset impairments |
(64,857) |
(40%) |
(55,540) |
(30%) |
(484,727) |
(81%) |
(117,311) |
(12%) |
(253,422) |
(196%) | |||||||||||
|
Restructuring charge |
— |
— |
— |
— |
— |
— |
(7,586) |
(1%) |
— |
— | |||||||||||
|
Operating loss |
$ |
(69,340) |
(43%) |
(56,569) |
(31%) |
(577,853) |
(97%) |
(69,524) |
(7%) |
(287,034) |
(222%) | ||||||||||
|
Foreign exchange gain (loss) |
664 |
<1% |
(1,645) |
(1%) |
(1,638) |
(<1%) |
(5,403) |
(1%) |
2,970 |
2% | |||||||||||
|
Equity in net earnings (losses) of unconsolidated companies |
2,841 |
2% |
(6,511) |
(4%) |
5,710 |
1% |
(13,581) |
(1%) |
1,557 |
1% | |||||||||||
|
Interest income and other, net |
1,588 |
1% |
949 |
1% |
5,193 |
1% |
2,703 |
<1% |
1,437 |
1% | |||||||||||
|
Interest and other debt costs, net |
(21,008) |
(13%) |
(14,011) |
(7%) |
(75,026) |
(12%) |
(53,752) |
(5%) |
(18,587) |
(14%) | |||||||||||
|
Loss before income taxes |
$ |
(85,255) |
(53%) |
(77,787) |
(42%) |
(643,614) |
(107%) |
(139,557) |
(14%) |
(299,657) |
(232%) | ||||||||||
Note (C): Americas segment fiscal 2016 figure excludes restructuring charges of $3.6 million. Asia/Pacific segment fiscal 2016 amount excludes restructuring charges of $4.0 million.
Note D): Americas segment vessel operating profit for fiscal 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 in fiscal 2017 include $29 million of costs associated with debt renegotiations.
The company's revenues, days-based vessel utilization percentages and average day rates by vessel class and in total for the quarters and the years ended March 31, 2017 and 2016 and for the quarter ended December 31, 2016, were as follows:
|
Quarter |
|||||||||||||||||||||||||||||||
|
Quarter Ended |
Year Ended |
Ended |
|||||||||||||||||||||||||||||
|
March 31, |
March 31, |
December 31, |
|||||||||||||||||||||||||||||
|
2017 |
2016 |
2017 |
2016 |
2016 |
|||||||||||||||||||||||||||
|
REVENUE BY VESSEL CLASS (In thousands): |
|||||||||||||||||||||||||||||||
|
Americas fleet: |
|||||||||||||||||||||||||||||||
|
Deepwater (F) |
$ |
62,831 |
43,802 |
171,334 |
235,522 |
30,846 |
|||||||||||||||||||||||||
|
Towing-supply |
14,738 |
16,878 |
56,561 |
92,768 |
11,905 |
||||||||||||||||||||||||||
|
Other |
2,964 |
2,970 |
11,948 |
14,705 |
2,826 |
||||||||||||||||||||||||||
|
Total |
$ |
80,533 |
63,650 |
239,843 |
342,995 |
45,577 |
|||||||||||||||||||||||||
|
Asia/Pacific fleet: |
|||||||||||||||||||||||||||||||
|
Deepwater |
$ |
1,138 |
4,318 |
7,252 |
60,853 |
1,652 |
|||||||||||||||||||||||||
|
Towing-supply |
4,813 |
5,473 |
18,316 |
28,192 |
3,934 |
||||||||||||||||||||||||||
|
Other |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||
|
Total |
$ |
5,951 |
9,791 |
25,568 |
89,045 |
5,586 |
|||||||||||||||||||||||||
|
Middle East fleet: |
|||||||||||||||||||||||||||||||
|
Deepwater |
$ |
8,295 |
5,796 |
28,274 |
23,596 |
6,953 |
|||||||||||||||||||||||||
|
Towing-supply |
12,432 |
18,367 |
60,776 |
87,760 |
13,694 |
||||||||||||||||||||||||||
|
Other |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||
|
Total |
$ |
20,727 |
24,163 |
89,050 |
111,356 |
20,647 |
|||||||||||||||||||||||||
|
Africa/Europe fleet: |
|||||||||||||||||||||||||||||||
|
Deepwater |
$ |
23,032 |
40,260 |
102,374 |
205,587 |
21,748 |
|||||||||||||||||||||||||
|
Towing-supply |
22,794 |
32,823 |
102,732 |
153,818 |
26,087 |
||||||||||||||||||||||||||
|
Other |
3,868 |
9,361 |
24,249 |
52,599 |
5,475 |
||||||||||||||||||||||||||
|
Total |
$ |
49,694 |
82,444 |
229,355 |
412,004 |
53,310 |
|||||||||||||||||||||||||
|
Worldwide fleet: |
|||||||||||||||||||||||||||||||
|
Deepwater |
$ |
95,296 |
94,176 |
309,234 |
525,558 |
61,199 |
|||||||||||||||||||||||||
|
Towing-supply |
54,777 |
73,541 |
238,385 |
362,538 |
55,620 |
||||||||||||||||||||||||||
|
Other |
6,832 |
12,331 |
36,197 |
67,304 |
8,301 |
||||||||||||||||||||||||||
|
Total |
$ |
156,905 |
180,048 |
583,816 |
955,400 |
125,120 |
|||||||||||||||||||||||||
Note (F): Included in Americas fleet deepwater revenue for the fourth quarter is $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract.
|
Quarter |
||||||||||||||||||||||||||||
|
Quarter Ended |
Year Ended |
Ended |
||||||||||||||||||||||||||
|
March 31, |
March 31, |
December 31, |
||||||||||||||||||||||||||
|
2017 |
2016 |
2017 |
2016 |
2016 |
||||||||||||||||||||||||
|
UTILIZATION: |
||||||||||||||||||||||||||||
|
Americas fleet: |
||||||||||||||||||||||||||||
|
Deepwater |
29.7% |
45.6 |
35.5 |
61.1 |
32.1 |
|||||||||||||||||||||||
|
Towing-supply |
41.8 |
43.6 |
39.4 |
53.4 |
36.4 |
|||||||||||||||||||||||
|
Other |
45.7 |
59.5 |
41.2 |
52.6 |
37.0 |
|||||||||||||||||||||||
|
Total |
35.2% |
46.5 |
37.4 |
57.1 |
34.0 |
|||||||||||||||||||||||
|
Asia/Pacific fleet: |
||||||||||||||||||||||||||||
|
Deepwater |
9.1% |
17.4 |
8.7 |
40.5 |
7.7 |
|||||||||||||||||||||||
|
Towing-supply |
34.4 |
56.3 |
43.2 |
67.6 |
42.5 |
|||||||||||||||||||||||
|
Other |
— |
— |
— |
— |
— |
|||||||||||||||||||||||
|
Total |
24.7% |
38.0 |
28.0 |
53.6 |
26.2 |
|||||||||||||||||||||||
|
Middle East fleet: |
||||||||||||||||||||||||||||
|
Deepwater |
79.7% |
61.3 |
72.9 |
61.5 |
74.7 |
|||||||||||||||||||||||
|
Towing-supply |
71.4 |
58.3 |
64.2 |
70.8 |
58.7 |
|||||||||||||||||||||||
|
Other |
— |
— |
— |
— |
— |
|||||||||||||||||||||||
|
Total |
74.2% |
58.9 |
66.4 |
69.2 |
62.5 |
|||||||||||||||||||||||
|
Africa/Europe fleet: |
||||||||||||||||||||||||||||
|
Deepwater |
53.6% |
57.0 |
48.8 |
60.7 |
42.9 |
|||||||||||||||||||||||
|
Towing-supply |
42.1 |
56.5 |
44.7 |
60.6 |
47.4 |
|||||||||||||||||||||||
|
Other |
31.0 |
68.6 |
40.9 |
71.8 |
37.6 |
|||||||||||||||||||||||
|
Total |
42.5% |
60.3 |
44.9 |
64.2 |
42.8 |
|||||||||||||||||||||||
|
Worldwide fleet: |
||||||||||||||||||||||||||||
|
Deepwater |
42.6% |
47.9 |
41.0 |
58.4 |
37.2 |
|||||||||||||||||||||||
|
Towing-supply |
46.9 |
53.7 |
48.2 |
62.3 |
47.5 |
|||||||||||||||||||||||
|
Other |
32.8 |
65.5 |
40.1 |
66.7 |
36.7 |
|||||||||||||||||||||||
|
Total |
42.6% |
53.6 |
43.9 |
61.7 |
41.4 |
|||||||||||||||||||||||
|
Quarter |
|||||||||||||||||||||||||||||||
|
Quarter Ended |
Year Ended |
Ended |
|||||||||||||||||||||||||||||
|
March 31, |
March 31, |
December 31, |
|||||||||||||||||||||||||||||
|
2017 |
2016 |
2017 |
2016 |
2016 |
|||||||||||||||||||||||||||
|
AVERAGE VESSEL DAY RATES: |
|||||||||||||||||||||||||||||||
|
Americas fleet: |
|||||||||||||||||||||||||||||||
|
Deepwater (G) |
$ |
57,311 |
25,795 |
31,851 |
26,755 |
25,181 |
|||||||||||||||||||||||||
|
Towing-supply |
17,816 |
14,701 |
16,868 |
16,372 |
16,239 |
||||||||||||||||||||||||||
|
Other |
9,015 |
6,056 |
9,418 |
7,344 |
10,384 |
||||||||||||||||||||||||||
|
Total |
$ |
35,756 |
19,077 |
23,982 |
20,824 |
20,436 |
|||||||||||||||||||||||||
|
Asia/Pacific fleet: |
|||||||||||||||||||||||||||||||
|
Deepwater |
$ |
12,641 |
21,112 |
18,600 |
32,467 |
17,964 |
|||||||||||||||||||||||||
|
Towing-supply |
7,640 |
6,434 |
6,616 |
7,336 |
6,164 |
||||||||||||||||||||||||||
|
Other |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||
|
Total |
$ |
8,265 |
9,278 |
8,096 |
15,575 |
7,650 |
|||||||||||||||||||||||||
|
Middle East fleet: |
|||||||||||||||||||||||||||||||
|
Deepwater |
$ |
9,643 |
14,844 |
11,265 |
16,776 |
10,674 |
|||||||||||||||||||||||||
|
Towing-supply |
8,214 |
11,935 |
9,316 |
11,675 |
8,553 |
||||||||||||||||||||||||||
|
Other |
— |
— |
— |
— |
— |
||||||||||||||||||||||||||
|
Total |
$ |
8,732 |
12,524 |
9,857 |
12,479 |
9,167 |
|||||||||||||||||||||||||
|
Africa/Europe fleet: |
|||||||||||||||||||||||||||||||
|
Deepwater |
$ |
11,763 |
18,064 |
13,861 |
21,106 |
13,262 |
|||||||||||||||||||||||||
|
Towing-supply |
13,940 |
14,519 |
14,570 |
15,722 |
13,917 |
||||||||||||||||||||||||||
|
Other |
3,652 |
3,947 |
4,277 |
4,883 |
4,169 |
||||||||||||||||||||||||||
|
Total |
$ |
10,682 |
12,016 |
11,407 |
13,599 |
11,042 |
|||||||||||||||||||||||||
|
Worldwide fleet: |
|||||||||||||||||||||||||||||||
|
Deepwater |
$ |
23,797 |
20,827 |
19,741 |
24,081 |
16,961 |
|||||||||||||||||||||||||
|
Towing-supply |
11,893 |
12,683 |
12,103 |
13,522 |
11,476 |
||||||||||||||||||||||||||
|
Other |
4,922 |
4,309 |
5,217 |
5,269 |
5,235 |
||||||||||||||||||||||||||
|
Total |
$ |
15,693 |
13,658 |
13,802 |
15,558 |
12,461 |
|||||||||||||||||||||||||
Note (G): Included in Americas fleet deepwater average day rates for the fourth quarter is $39.1 million or revenue related to 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 and $24,573 for the fourth quarter and year ended March 31, 2017, respectively.
The company's actual vessel count at March 31, 2017 and the average number of vessels by class and geographic distribution for the quarters and the years ended March 31, 2017 and 2016 and for the quarter ended December 31, 2016:
|
Actual Vessel |
Quarter |
|||||||||||||||||||||||
|
Count at |
Quarter Ended |
Year Ended |
Ended |
|||||||||||||||||||||
|
March 31, |
March 31, |
March 31, |
December 31, |
|||||||||||||||||||||
|
2017 |
2017 |
2016 |
2017 |
2016 |
2016 |
|||||||||||||||||||
|
Americas fleet: |
||||||||||||||||||||||||
|
Deepwater |
41 |
41 |
41 |
42 |
39 |
41 |
||||||||||||||||||
|
Towing-supply |
21 |
22 |
29 |
23 |
30 |
22 |
||||||||||||||||||
|
Other |
8 |
8 |
9 |
8 |
10 |
8 |
||||||||||||||||||
|
Total |
70 |
71 |
79 |
73 |
79 |
71 |
||||||||||||||||||
|
Less stacked vessels |
34 |
34 |
29 |
33 |
18 |
35 |
||||||||||||||||||
|
Active vessels |
36 |
37 |
50 |
40 |
61 |
36 |
||||||||||||||||||
|
Asia/Pacific fleet: |
||||||||||||||||||||||||
|
Deepwater |
11 |
11 |
13 |
12 |
13 |
13 |
||||||||||||||||||
|
Towing-supply |
21 |
20 |
16 |
18 |
15 |
16 |
||||||||||||||||||
|
Other |
1 |
1 |
1 |
1 |
1 |
1 |
||||||||||||||||||
|
Total |
33 |
32 |
30 |
31 |
29 |
30 |
||||||||||||||||||
|
Less stacked vessels |
23 |
24 |
13 |
21 |
9 |
22 |
||||||||||||||||||
|
Active vessels |
10 |
8 |
17 |
10 |
20 |
8 |
||||||||||||||||||
|
Middle East fleet: |
||||||||||||||||||||||||
|
Deepwater |
12 |
12 |
7 |
9 |
6 |
9 |
||||||||||||||||||
|
Towing-supply |
23 |
24 |
29 |
28 |
29 |
30 |
||||||||||||||||||
|
Other |
— |
— |
— |
— |
— |
— |
||||||||||||||||||
|
Total |
35 |
36 |
36 |
37 |
35 |
39 |
||||||||||||||||||
|
Less stacked vessels |
2 |
— |
5 |
5 |
3 |
8 |
||||||||||||||||||
|
Active vessels |
33 |
36 |
31 |
32 |
32 |
31 |
||||||||||||||||||
|
Africa/Europe fleet: |
||||||||||||||||||||||||
|
Deepwater |
40 |
41 |
43 |
42 |
44 |
42 |
||||||||||||||||||
|
Towing-supply |
44 |
43 |
44 |
43 |
44 |
43 |
||||||||||||||||||
|
Other |
38 |
38 |
38 |
38 |
41 |
38 |
||||||||||||||||||
|
Total |
122 |
122 |
125 |
123 |
129 |
123 |
||||||||||||||||||
|
Less stacked vessel |
52 |
54 |
26 |
45 |
20 |
50 |
||||||||||||||||||
|
Active vessels |
70 |
68 |
99 |
78 |
109 |
73 |
||||||||||||||||||
|
Active owned or chartered vessels |
149 |
149 |
197 |
160 |
222 |
148 |
||||||||||||||||||
|
Stacked vessels |
111 |
112 |
73 |
104 |
50 |
115 |
||||||||||||||||||
|
Total owned or chartered vessels |
260 |
261 |
270 |
264 |
272 |
263 |
||||||||||||||||||
|
Joint-venture and other |
8 |
8 |
9 |
8 |
9 |
8 |
||||||||||||||||||
|
Total |
268 |
269 |
279 |
272 |
281 |
271 |
||||||||||||||||||
Note (H): Included in total owned or chartered vessels at March 31, 2017 and 2016 and at December 31, 2016, were 111, 77 and 116 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 March 31, 2017:
|
Invested |
Remaining |
|||||||||||||||
|
Number of |
Through |
Balance |
||||||||||||||
|
(In thousands, except vessel count) |
Vessels |
Total Cost |
3/31/17 |
3/31/17 |
||||||||||||
|
Vessels under construction (J): |
||||||||||||||||
|
Deepwater PSVs (I) |
2 |
$ |
110,022 |
77,054 |
32,968 |
|||||||||||
|
Total vessel commitments |
2 |
$ |
110,022 |
77,054 |
32,968 |
|||||||||||
Note (I): In April 2017, the company entered into a novation agreement and assigned the construction contract related to one of the vessels under construction to a third party for net consideration of $5.3 million thus relieving the company of future payments of $27.2 million.
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 approximately $33 million in unfunded capital commitments associated with two vessels under construction at March 31, 2017 ($5.8 million, net of amounts relieved as a result of a novation agreement executed in April 2017).
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SOURCE Tidewater Inc.
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