Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 31, 2015 | |
Document Document And Entity Information [Abstract] | ||
Entity Registrant Name | HORNBECK OFFSHORE SERVICES INC /LA | |
Entity Central Index Key | 1,131,227 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | HOS | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 35,849,293 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 302,618 | $ 185,123 |
Accounts receivable, net of allowance for doubtful accounts of $2,996 and $3,693, respectively | 86,456 | 130,969 |
Deferred Tax Assets, Net of Valuation Allowance, Current | 5,347 | 45,531 |
Other current assets | 15,762 | 20,049 |
Current assets from discontinued operations | 0 | 470 |
Total current assets | 410,183 | 382,142 |
Property, plant and equipment, net | 2,516,894 | 2,459,486 |
Deferred charges, net | 55,318 | 68,953 |
Other assets | 15,301 | 11,870 |
Total assets | 2,997,696 | 2,922,451 |
Current liabilities: | ||
Accounts payable | 37,028 | 42,404 |
Accrued interest | 13,591 | 14,890 |
Accrued payroll and benefits | 14,097 | 14,830 |
Deferred revenue | 592 | 1,561 |
Other accrued liabilities | 15,378 | 9,360 |
Total current liabilities | 80,686 | 83,045 |
Long-term debt, net of original issue discount of $44,141 and $51,528, respectively | 1,080,859 | 1,073,472 |
Deferred tax liabilities, net | 389,520 | 392,492 |
Other liabilities | 1,260 | 1,117 |
Liabilities of Disposal Group, Including Discontinued Operation, Noncurrent | 0 | 1,560 |
Total liabilities | 1,552,325 | 1,551,686 |
Stockholders’ equity: | ||
Preferred stock: $0.01 par value; 5,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock: $0.01 par value; 100,000 shares authorized; 35,834 and 35,557 shares issued and | 358 | 356 |
Additional paid-in-capital | 744,526 | 736,294 |
Retained earnings | 704,509 | 635,017 |
Accumulated other comprehensive loss | (4,022) | (902) |
Total stockholders’ equity | 1,445,371 | 1,370,765 |
Total liabilities and stockholders’ equity | $ 2,997,696 | $ 2,922,451 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowance for doubtful accounts | $ 2,996 | $ 3,693 |
Long-term debt, net of original issue discount | $ 44,141 | $ 51,528 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock shares authorized | 5,000,000 | 5,000,000 |
Preferred stock issued | 0 | 0 |
Preferred stock outstanding | 0 | 0 |
Common stock Par Value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock issued | 35,834,000 | 35,557,000 |
Common stock outstanding | 35,834,000 | 35,557,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Income Statement [Abstract] | |||||
Revenues | $ 116,281 | $ 166,890 | $ 387,351 | $ 474,574 | |
Costs and expenses: | |||||
Operating expenses | 54,938 | 76,425 | 173,900 | 216,411 | |
Depreciation | 20,958 | 18,201 | 61,114 | 51,998 | |
Amortization | 6,392 | 10,810 | 20,192 | 33,916 | |
General and administrative expenses | 12,188 | 11,220 | 37,143 | 40,392 | |
Costs and Expenses, Total | 94,476 | 116,656 | 292,349 | 342,717 | |
Gain on sale of assets | 11,004 | 0 | 44,060 | 161 | |
Operating income | 32,809 | 50,234 | 139,062 | 132,018 | |
Other income (expense): | |||||
Interest income | 381 | 233 | 988 | 880 | |
Interest expense | (9,712) | (7,808) | (29,895) | (22,056) | |
Other income (expense), net | 94 | 52 | 1,016 | 15 | |
Nonoperating Income (Expense), Total | (9,237) | (7,523) | (27,891) | (21,161) | |
Income before income taxes | 23,572 | 42,711 | 111,171 | 110,857 | |
Income tax expense | 9,148 | 16,152 | 41,679 | 41,719 | |
Income from continuing operations | 14,424 | 26,559 | 69,492 | 69,138 | |
Income (loss) from discontinued operations, net of tax | [1] | 0 | (204) | 0 | 216 |
Net income | $ 14,424 | $ 26,355 | $ 69,492 | $ 69,354 | |
Earnings per share: | |||||
Basic earnings per common share from continuing operations | $ 0.40 | $ 0.73 | $ 1.95 | $ 1.91 | |
Basic loss per common share from discontinued operations | 0 | (0.01) | 0 | 0 | |
Basic earnings per common share | 0.40 | 0.72 | 1.95 | 1.91 | |
Diluted earnings per common share from continuing operations | 0.40 | 0.72 | 1.92 | 1.89 | |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | 0 | (0.01) | 0 | 0 | |
Diluted earnings per common share, Dollars per Share | $ 0.40 | $ 0.71 | $ 1.92 | $ 1.89 | |
Weighted average basic shares outstanding | 35,832 | 36,318 | 35,723 | 36,247 | |
Weighted average diluted shares outstanding | 36,383 | 36,857 | 36,256 | 36,778 | |
[1] | On August 29, 2013, the Company closed the sale of its Downstream segment. |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 14,424 | $ 26,355 | $ 69,492 | $ 69,354 |
Other comprehensive income: | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | (2,866) | (181) | (3,120) | 44 |
Total comprehensive income | $ 11,558 | $ 26,174 | $ 66,372 | $ 69,398 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Income from continuing operations | $ 69,492 | $ 69,138 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | ||
Depreciation | 61,114 | 51,998 |
Amortization | 20,192 | 33,916 |
Stock-based compensation expense | 7,957 | 8,417 |
Provision for Doubtful Accounts | (697) | (475) |
Deferred tax expense | 41,516 | 41,018 |
Amortization of deferred financing costs | 7,267 | 5,971 |
Gain on sale of assets | (44,060) | (161) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 44,910 | (30,537) |
Increase (Decrease) in Other Operating Assets | (1,185) | 6,979 |
Deferred drydocking charges | (12,034) | (39,648) |
Accounts payable | (8,271) | (2,080) |
Accrued liabilities and other liabilities | (2,804) | (9,635) |
Accrued interest | (1,299) | (1,242) |
Net cash provided by operating activities | 184,468 | 119,701 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Costs incurred for OSV newbuild program | (152,415) | (275,150) |
Net proceeds from sale of assets | 152,000 | 103 |
Vessel capital expenditures | (47,460) | (41,862) |
Non-vessel capital expenditures | (15,855) | (2,814) |
Net cash used in investing activities | (63,730) | (319,723) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Deferred financing costs | (2,089) | 0 |
Net cash proceeds from other shares issued | 1,966 | 2,403 |
Net cash provided by (used in) financing activities | (123) | 2,403 |
CASH FLOWS FROM DISCONTINUED OPERATIONS: | ||
Net cash provided by operating activities | 0 | 790 |
Net cash provided by investing activities | 0 | 1,288 |
Net cash provided by discontinued operations | 0 | 2,078 |
Effects of exchange rate changes on cash | (3,120) | 44 |
Net increase (decrease) in cash and cash equivalents | 117,495 | (195,497) |
Cash and cash equivalents at beginning of period | 185,123 | 439,291 |
Cash and cash equivalents at end of period | 302,618 | 243,794 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW ACTIVITIES: | ||
Cash paid for interest | 39,151 | 39,150 |
Cash paid for income taxes | $ 3,331 | $ 4,111 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements do not include certain information and footnote disclosures required by United States generally accepted accounting principles, or GAAP. The interim financial statements and notes are presented as permitted by instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments necessary for a fair presentation of the interim financial statements have been included and consist only of normal recurring items. The unaudited quarterly financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Annual Report on Form 10-K of Hornbeck Offshore Services, Inc. (together with its subsidiaries, the “Company”) for the year ended December 31, 2014 . The results of operations for the nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 . The consolidated balance sheet at December 31, 2014 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Recent Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements On April 7, 2015, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update (ASU) No. 2015-03, "Interest - Imputation of Interest - Simplifying the Presentation of Debt Issuance Costs" (Subtopic 835-30). The amendments in ASU No. 2015-03 require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in ASU No. 2015-03. Therefore, the amortization of such costs will continue to be calculated using the interest method and be reported as interest expense. ASU No. 2015-03 requires retrospective application and will be effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early application is permitted. The Company believes that the implementation of this new guidance will not have a material impact on its consolidated financial statements. On May 28, 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers" (Topic 606), which supersedes the revenue recognition requirements in FASB Accounting Standard Codification (ASC) Topic 605, "Revenue Recognition." On July 9, 2015, the FASB voted to defer the effective date of ASU No. 2014-09 by one year to December 15, 2017 for interim and annual reporting periods beginning after that date and permitted early adoption of the standard, but not before the original effective date of December 15, 2016. ASU No. 2014-09 requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 requires retrospective application. The Company is evaluating the effect of this new standard on its financial statements. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per common share was calculated by dividing income from continuing operations and income from discontinued operations by the weighted average number of common shares outstanding during the period. Diluted earnings per common share was calculated by dividing income from continuing operations and income from discontinued operations by the weighted average number of common shares outstanding during the year plus the effect of dilutive stock options and restricted stock unit awards. Weighted average number of common shares outstanding was calculated by using the sum of the shares determined on a daily basis divided by the number of days in the period. The table below reconciles the Company’s earnings per share (in thousands, except for per share data): Three Months Ended Nine Months Ended 2015 2014 2015 2014 Income from continuing operations $ 14,424 $ 26,559 $ 69,492 $ 69,138 Income (loss) from discontinued operations, net of tax (1) — (204 ) — 216 Net income $ 14,424 $ 26,355 $ 69,492 $ 69,354 Weighted average number of shares of common stock outstanding 35,832 36,318 35,723 36,247 Add: Net effect of dilutive stock options and unvested restricted stock (2)(3)(4) 551 539 533 531 Weighted average number of dilutive shares of common stock outstanding 36,383 36,857 36,256 36,778 Earnings per common share: Basic earnings per common share from continuing operations $ 0.40 $ 0.73 $ 1.95 $ 1.91 Basic loss per common share from discontinued operations — (0.01 ) — — Basic earnings per common share $ 0.40 $ 0.72 $ 1.95 $ 1.91 Diluted earnings per common share from continuing operations $ 0.40 $ 0.72 $ 1.92 $ 1.89 Diluted loss per common share from discontinued operations — (0.01 ) — — Diluted earnings per common share $ 0.40 $ 0.71 $ 1.92 $ 1.89 (1) On August 29, 2013, the Company closed the sale of its Downstream segment. (2) For the three and nine months ended September 30, 2015 , the Company had 317 and 326 anti-dilutive stock options, respectively. For the three and nine months ended September 30, 2014, the Company had no anti-dilutive stock options. Stock options are anti-dilutive when the exercise price of the options is greater than the average market price of the common stock for the period or when the results from operations are a net loss. (3) For the three and nine months ended September 30, 2015 and 2014 , the 2019 convertible senior notes were not dilutive, as the average price of the Company’s stock was less than the effective conversion price of such notes. It is the Company's stated intention to redeem the principal amount of its 2019 convertible senior notes in cash and the Company has used the treasury method for determining potential dilution in the diluted earnings per share computation. (4) Dilutive unvested restricted stock units are expected to fluctuate from quarter to quarter depending on the Company’s performance compared to a predetermined set of performance criteria. See Note 6 to these financial statements for further information regarding certain of the Company’s restricted stock grants. |
Vessel Sales (Notes)
Vessel Sales (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Vessel Sales [Abstract] | |
Vessel Sales [Text Block] | Vessel Sales On February 27, 2015, the Company closed on the sale of three 250EDF class OSVs, the HOS Arrowhead , the HOS Eagleview and the HOS Westwind , which were previously chartered to the U.S. Navy, for cash consideration of $114.0 million . The sale resulted in a pre-tax gain of approximately $33.1 million ( $20.7 million after-tax or $0.57 per diluted share). The vessel purchase agreement included an option for the acquisition of a fourth vessel chartered to the U.S. Navy, the HOS Black Powder . On August 28, 2015, the Company closed on the sale of the HOS Black Powder for incremental cash consideration of $38.0 million . This sale resulted in a pre-tax gain of approximately $11.0 million ( $6.7 million after-tax or $0.19 per diluted share). |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt As of the dates indicated, the Company had the following outstanding long-term debt (in thousands): September 30, December 31, 5.875% senior notes due 2020 $ 375,000 $ 375,000 5.000% senior notes due 2021 450,000 450,000 1.500% convertible senior notes due 2019, net of original issue discount of $44,141 and $51,528 255,859 248,472 Revolving credit facility due 2020 — — 1,080,859 1,073,472 Less current maturities — — $ 1,080,859 $ 1,073,472 The table below summarizes the Company's cash interest payments (in thousands): Semi-Annual Cash Interest Payment Payment Dates 5.875% senior notes due 2020 $ 11,000 April 1 and October 1 5.000% senior notes due 2021 11,300 March 1 and September 1 1.500% convertible senior notes due 2019 2,300 March 1 and September 1 As of September 30, 2015 , there were no amounts drawn under the Company’s $300.0 million revolving credit facility and $0.5 million posted as letters of credit. As of September 30, 2015 , the Company was in compliance with all financial covenants required by its revolving credit facility and the full amount of the undrawn borrowing base under the facility was available to the Company for all permissible uses of proceeds, including working capital, if necessary. The Company estimates the fair value of its 2020 senior notes, 2021 senior notes and 2019 convertible senior notes by primarily using quoted market prices. The fair value of the Company’s revolving credit facility, when there are outstanding balances, approximates its carrying value. The face value, carrying value and fair value of the Company’s total debt was $1,125.0 million , $1,080.9 million and $858.8 million , respectively, as of September 30, 2015 . Given the observability of the inputs to these estimates, the fair values presented for long-term debt have been assigned a Level 2 of the three-level valuation hierarchy. Capitalized Interest During the three and nine months ended September 30, 2015 , the Company capitalized approximately $ 6.3 million and $ 18.2 million , respectively, of interest costs related to the construction of vessels. During the three and nine months ended September 30, 2014 , the Company capitalized approximately $8.2 million and $25.9 million , respectively, of interest costs related to the construction of vessels. |
Incentive Compensation
Incentive Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Incentive Compensation | Incentive Compensation Stock-Based Incentive Compensation Plan In June 2015, the Company received stockholder approval to increase the maximum number of shares available under its long-term compensation plan by 750,000 . The Company’s stock-based incentive compensation plan now covers a maximum of 4.95 million shares of common stock that allows the Company to grant restricted stock awards, restricted stock unit awards, or collectively restricted stock, stock options, stock appreciation rights and fully-vested common stock to employees and directors. As of September 30, 2015, the Company has granted awards covering 4.0 million shares of common stock under such plan. During the nine months ended September 30, 2015 , the Company granted cash-settled phantom restricted stock units, time-based restricted stock units, performance-based restricted stock units and fully-vested common stock as noted in the table below. Directors Executive Officers Certain Managers Cash-settled phantom restricted stock units X X Time-based restricted stock units X Performance-based restricted stock units X Fully-vested common stock X The shares to be received under the performance-based restricted stock units are calculated based on the Company’s performance compared to three pre-determined criteria, as defined by the restricted stock agreements governing such awards. The actual number of shares that could be received by the award recipients can range from 0% to 150% of the awards granted depending on the Company’s performance. During the nine months ended September 30, 2015 , the Company granted 353,940 time-based and performance-based restricted stock units, 47,504 cash-settled phantom restricted stock units and 39,945 shares of fully-vested common stock. Compensation expense related to 2015 restricted stock unit grants is recognized over the three -year service period. The fair value of the Company’s performance-based restricted stock units, which is the stock price on the date of grant, is applied to the total shares that are expected to fully vest and is amortized over the vesting period, which is generally three years, based on the Company’s internal performance measured against the pre-determined criteria, as applicable. The compensation expense related to time-based restricted stock units and cash-settled phantom restricted stock units are amortized over a vesting period of up to three years, as applicable, and is determined based on the market price of the Company’s stock on the date of grant applied to the total shares that are expected to fully vest. In addition, the cash-settled phantom restricted stock units are re-measured quarterly and classified as a liability, due to the settlement of these awards in cash. In addition to the restricted stock units granted in 2015, the Company granted performance-based and time-based restricted stock units in 2012, 2013 and 2014. During the nine months ended September 30, 2015 , the Company issued 277,120 shares, in the aggregate, of stock due to: 1) employees exercising previously vested stock options, 2) vestings of restricted stock units, 3) employee purchases under the Company's Employee Stock Purchase Plan and 4) the issuance of fully-vested common stock. Stock-based compensation expense charges from previously issued equity grants and the financial impact such grants have on the Company’s operating results are reflected in the table below (in thousands, except for per share data): Three Months Ended Nine Months Ended 2015 2014 2015 2014 Income before taxes $ 3,183 $ 2,101 $ 7,957 $ 8,417 Net income $ 1,948 $ 1,306 $ 4,973 $ 5,249 Earnings per common share: Basic earnings per common share $ 0.05 $ 0.04 $ 0.14 $ 0.14 Diluted earnings per common share $ 0.05 $ 0.04 $ 0.14 $ 0.14 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Vessel Construction The Company's fifth OSV newbuild program consists of vessel construction contracts with three domestic shipyards to build four 300 class OSVs, five 310 class OSVs, ten 320 class OSVs and five 310 class MPSVs. As of September 30, 2015, the Company had placed 17 vessels in service under such program. The seven remaining vessels under this 24 -vessel domestic newbuild program are currently expected to be placed in service as follows: three in the remainder of 2015 and four in 2016. Based on current contracts and internal estimates, the aggregate cost of this program, excluding construction period interest, is expected to be approximately $1,265.0 million , of which $35.0 million and $60.6 million are expected to be incurred in the remainder of 2015 and 2016, respectively. From the inception of this program through September 30, 2015 , the Company had incurred $1,169.4 million , or 92.4% , of total expected project costs. The Company has experienced production deficiencies at two of the shipyards, at which three vessels are being constructed, and expects to invoke dispute resolution mechanisms against one of them, unless an acceptable resolution is reached. The Company has been informed by the other yard that it is experiencing financial difficulties. These difficulties could impact the schedule for delivery of vessels being constructed there. The Company has security from an investment-grade rated third-party that would support completion of the work should these financial problems persist. Contingencies In the normal course of its business, the Company becomes involved in various claims and legal proceedings in which monetary damages are sought. The Company insures against losses relating to its vessels, pollution and third party liabilities, including claims by employees under Section 33 of the Merchant Marine Act of 1920, or the Jones Act. Third party liabilities and pollution claims that relate to vessel operations are covered by the Company’s entry in a mutual protection and indemnity association, or P&I Club, as well as by marine liability policies in excess of the P&I Club’s coverage. The Company provides reserves for any individual claim deductibles for which the Company remains responsible by using an estimation process that considers Company-specific and industry data, as well as management’s experience, assumptions and consultation with outside counsel. As additional information becomes available, the Company will assess the potential liability related to its pending claims and revise its estimates. Although revisions to such estimates historically have not been material, changes in estimates of the potential liability could materially impact the Company’s results of operations, financial position or cash flows. Vessel charters with Petrobras include limitations regarding fuel consumption. Petrobras has asserted claims against the Company relating to excess fuel consumption. The Company’s exposure for these assessments is in the range of approximately $0.5 million to $3.0 million . The Company disagrees with these assessments. During the second quarter of 2015, the Brazilian court ruled in the Company's favor related to these claims. Subsequent to this ruling, Petrobras appealed this decision to a higher court. While the Company cannot currently estimate the amounts or timing of the resolution of these matters, the Company believes that the outcome will not have a material impact on its liquidity or financial position, but the ultimate resolution could have a material impact on its interim or annual results of operations. During 2013, the Company commenced the process of assigning the in-country vessel management services for its four vessels operating in Brazil from a third-party provider to a wholly-owned subsidiary of the Company. As a result, this assignment has been interpreted by local authorities as a new importation of these vessels resulting in an importation assessment ranging from $0.5 million to $3.5 million . The Company disagrees with this interpretation and related assessment. During the third quarter of 2015, the Brazilian court ruled in the Company's favor related to these claims and this decision has been appealed to a higher court. As of September 30, 2015 , these potential importation duties have not been recorded in its financial statements. While the Company cannot estimate the amounts or timing of the resolution of this matter, the Company believes that the outcome will not have a material impact on its liquidity or financial position, but the ultimate resolution could have a material impact on its interim or annual results of operations. During 2012, an Upstream customer, ATP Oil and Gas, Inc., initiated a reorganization proceeding under Chapter 11 of the United States Bankruptcy Code. Pre-petition receivables from ATP were $4.8 million and the Company has recorded $0.9 million in reserves. While the Company believes that the net receivables are collectible, it will continue to monitor the proceedings, which may result in actual collections that may differ materially from the current estimate. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Reconciliation of Earnings Per Share | The table below reconciles the Company’s earnings per share (in thousands, except for per share data): Three Months Ended Nine Months Ended 2015 2014 2015 2014 Income from continuing operations $ 14,424 $ 26,559 $ 69,492 $ 69,138 Income (loss) from discontinued operations, net of tax (1) — (204 ) — 216 Net income $ 14,424 $ 26,355 $ 69,492 $ 69,354 Weighted average number of shares of common stock outstanding 35,832 36,318 35,723 36,247 Add: Net effect of dilutive stock options and unvested restricted stock (2)(3)(4) 551 539 533 531 Weighted average number of dilutive shares of common stock outstanding 36,383 36,857 36,256 36,778 Earnings per common share: Basic earnings per common share from continuing operations $ 0.40 $ 0.73 $ 1.95 $ 1.91 Basic loss per common share from discontinued operations — (0.01 ) — — Basic earnings per common share $ 0.40 $ 0.72 $ 1.95 $ 1.91 Diluted earnings per common share from continuing operations $ 0.40 $ 0.72 $ 1.92 $ 1.89 Diluted loss per common share from discontinued operations — (0.01 ) — — Diluted earnings per common share $ 0.40 $ 0.71 $ 1.92 $ 1.89 (1) On August 29, 2013, the Company closed the sale of its Downstream segment. (2) For the three and nine months ended September 30, 2015 , the Company had 317 and 326 anti-dilutive stock options, respectively. For the three and nine months ended September 30, 2014, the Company had no anti-dilutive stock options. Stock options are anti-dilutive when the exercise price of the options is greater than the average market price of the common stock for the period or when the results from operations are a net loss. (3) For the three and nine months ended September 30, 2015 and 2014 , the 2019 convertible senior notes were not dilutive, as the average price of the Company’s stock was less than the effective conversion price of such notes. It is the Company's stated intention to redeem the principal amount of its 2019 convertible senior notes in cash and the Company has used the treasury method for determining potential dilution in the diluted earnings per share computation. (4) Dilutive unvested restricted stock units are expected to fluctuate from quarter to quarter depending on the Company’s performance compared to a predetermined set of performance criteria. See Note 6 to these financial statements for further information regarding certain of the Company’s restricted stock grants. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Outstanding Long-Term Debt | As of the dates indicated, the Company had the following outstanding long-term debt (in thousands): September 30, December 31, 5.875% senior notes due 2020 $ 375,000 $ 375,000 5.000% senior notes due 2021 450,000 450,000 1.500% convertible senior notes due 2019, net of original issue discount of $44,141 and $51,528 255,859 248,472 Revolving credit facility due 2020 — — 1,080,859 1,073,472 Less current maturities — — $ 1,080,859 $ 1,073,472 The table below summarizes the Company's cash interest payments (in thousands): Semi-Annual Cash Interest Payment Payment Dates 5.875% senior notes due 2020 $ 11,000 April 1 and October 1 5.000% senior notes due 2021 11,300 March 1 and September 1 1.500% convertible senior notes due 2019 2,300 March 1 and September 1 |
Incentive Compensation (Tables)
Incentive Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Financial Impact of Stock-Based Compensation Expense Charges | Stock-based compensation expense charges from previously issued equity grants and the financial impact such grants have on the Company’s operating results are reflected in the table below (in thousands, except for per share data): Three Months Ended Nine Months Ended 2015 2014 2015 2014 Income before taxes $ 3,183 $ 2,101 $ 7,957 $ 8,417 Net income $ 1,948 $ 1,306 $ 4,973 $ 5,249 Earnings per common share: Basic earnings per common share $ 0.05 $ 0.04 $ 0.14 $ 0.14 Diluted earnings per common share $ 0.05 $ 0.04 $ 0.14 $ 0.14 |
Reconciliation of Earnings Per
Reconciliation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Income from continuing operations | $ 14,424 | $ 26,559 | $ 69,492 | $ 69,138 | |
Income (loss) from discontinued operations, net of tax | [1] | 0 | (204) | 0 | 216 |
Net income | $ 14,424 | $ 26,355 | $ 69,492 | $ 69,354 | |
Weighted average number of shares of common stock outstanding | 35,832,000 | 36,318,000 | 35,723,000 | 36,247,000 | |
Add: Net effect of dilutive stock options and unvested restricted stock | [2],[3],[4] | 551,000 | 539,000 | 533,000 | 531,000 |
Weighted average number of dilutive shares of common stock outstanding | 36,383,000 | 36,857,000 | 36,256,000 | 36,778,000 | |
Earnings per common share: | |||||
Basic earnings per common share from continuing operations | $ 0.40 | $ 0.73 | $ 1.95 | $ 1.91 | |
Basic loss per common share from discontinued operations | 0 | (0.01) | 0 | 0 | |
Basic earnings per common share, Dollars per Share | 0.40 | 0.72 | 1.95 | 1.91 | |
Diluted earnings per common share from continuing operations | 0.40 | 0.72 | 1.92 | 1.89 | |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share | 0 | (0.01) | 0 | 0 | |
Diluted earnings per common share, Dollars per Share | $ 0.40 | $ 0.71 | $ 1.92 | $ 1.89 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 317 | 0 | 326 | 0 | |
[1] | On August 29, 2013, the Company closed the sale of its Downstream segment. | ||||
[2] | Dilutive unvested restricted stock units are expected to fluctuate from quarter to quarter depending on the Company’s performance compared to a predetermined set of performance criteria. See Note 6 to these financial statements for further information regarding certain of the Company’s restricted stock grants. | ||||
[3] | For the three and nine months ended September 30, 2015 and 2014, the 2019 convertible senior notes were not dilutive, as the average price of the Company’s stock was less than the effective conversion price of such notes. It is the Company's stated intention to redeem the principal amount of its 2019 convertible senior notes in cash and the Company has used the treasury method for determining potential dilution in the diluted earnings per share computation. | ||||
[4] | For the three and nine months ended September 30, 2015, the Company had 317 and 326 anti-dilutive stock options, respectively. For the three and nine months ended September 30, 2014, the Company had no anti-dilutive stock options. Stock options are anti-dilutive when the exercise price of the options is greater than the average market price of the common stock for the period or when the results from operations are a net loss. |
Vessel Sales (Details)
Vessel Sales (Details) $ / shares in Units, $ in Thousands | Aug. 28, 2015USD ($)Vessel$ / shares | Feb. 27, 2015USD ($)Vessel$ / shares | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) |
Vessel Sales [Abstract] | ||||||
NumberofVesselsSold | Vessel | 1 | 3 | ||||
Proceeds from Sale of Other Property, Plant, and Equipment | $ 38,000 | $ 114,000 | ||||
Gain on sale of assets | 11,004 | 33,056 | $ 11,004 | $ 0 | $ 44,060 | $ 161 |
Gain (Loss) on Disposition of Assets | $ 6,700 | $ 20,700 | ||||
Gain (Loss) on Disposition of Assets, net of tax per share | $ / shares | $ 0.19 | $ 0.57 |
Outstanding Long-Term Debt (Det
Outstanding Long-Term Debt (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Long-term debt, net of original issue discount | $ 44,141 | $ 51,528 |
Long-term Debt | 1,080,859 | 1,073,472 |
Long-term Debt, Current Maturities | 0 | 0 |
Long-term Debt, Excluding Current Maturities | $ 1,080,859 | $ 1,073,472 |
Senior Notes 5.875 Percent Due 2020 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.875% | 5.875% |
Maturity | 2,020 | 2,020 |
Senior Notes | $ 375,000 | $ 375,000 |
Senior Notes 5.000 Percent Due 2021 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 5.00% | 5.00% |
Maturity | 2,021 | 2,021 |
Senior Notes | $ 450,000 | $ 450,000 |
Convertible 1.500 Percent Senior Notes Due 2019 | ||
Debt Instrument [Line Items] | ||
Interest Rate | 1.50% | 1.50% |
Maturity | 2,019 | 2,019 |
Long-term debt, net of original issue discount | $ 44,141 | $ 51,528 |
Senior Notes | $ 255,859 | $ 248,472 |
Revolving Credit Facility Due 2016 | ||
Debt Instrument [Line Items] | ||
Maturity | 2,020 | 2,020 |
Revolving credit facility due 2020 | $ 0 | $ 0 |
Long-Term Debt Cash Interest Pa
Long-Term Debt Cash Interest Payments on Long-Term Debt (Details) - Subsequent Event [Member] - USD ($) $ in Thousands | Apr. 01, 2016 | Mar. 01, 2016 |
Senior Notes 5.875 Percent Due 2020 | ||
Debt Instrument [Line Items] | ||
Semi-Annual Cash Interest Payment | $ 11,000 | |
Senior Notes 5.000 Percent Due 2021 | ||
Debt Instrument [Line Items] | ||
Semi-Annual Cash Interest Payment | $ 11,300 | |
Convertible 1.500 Percent Senior Notes Due 2019 | ||
Debt Instrument [Line Items] | ||
Semi-Annual Cash Interest Payment | $ 2,300 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Apr. 01, 2016 | Mar. 01, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||||||
Long-term debt, net of original issue discount | $ 44,141,000 | $ 44,141,000 | $ 51,528,000 | ||||
Long-term Debt, Current Maturities | 0 | 0 | 0 | ||||
Debt instrument, principal amount | 1,125,000,000 | 1,125,000,000 | |||||
Debt, carrying value | 1,080,859,000 | 1,080,859,000 | $ 1,073,472,000 | ||||
Debt, fair value | 858,800,000 | 858,800,000 | |||||
Capitalized interest, approximate amount | 6,300,000 | $ 8,200,000 | 18,200,000 | $ 25,900,000 | |||
Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Letter of credit | $ 500,000 | $ 500,000 | |||||
Senior Notes 5.875 Percent Due 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.875% | 5.875% | 5.875% | ||||
Debt Instrument Maturity Year | 2,020 | 2,020 | |||||
Senior Notes | $ 375,000,000 | $ 375,000,000 | $ 375,000,000 | ||||
Senior Notes 5.000 Percent Due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | 5.00% | ||||
Debt Instrument Maturity Year | 2,021 | 2,021 | |||||
Senior Notes | $ 450,000,000 | $ 450,000,000 | $ 450,000,000 | ||||
Convertible 1.500 Percent Senior Notes Due 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | 1.50% | 1.50% | ||||
Debt Instrument Maturity Year | 2,019 | 2,019 | |||||
Long-term debt, net of original issue discount | $ 44,141,000 | $ 44,141,000 | $ 51,528,000 | ||||
Senior Notes | 255,859,000 | $ 255,859,000 | $ 248,472,000 | ||||
Revolving Credit Facility Maturing Twenty Sixteen [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument Maturity Year | 2,020 | 2,020 | |||||
Letter of credit | 0 | $ 0 | $ 0 | ||||
Undrawn senior secured revolving credit facility | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Current Borrowing Capacity | $ 300,000,000 | $ 300,000,000 | |||||
Subsequent Event [Member] | Senior Notes 5.875 Percent Due 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Semi-Annual Cash Interest Payment | $ 11,000,000 | ||||||
Subsequent Event [Member] | Senior Notes 5.000 Percent Due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Semi-Annual Cash Interest Payment | $ 11,300,000 | ||||||
Subsequent Event [Member] | Convertible 1.500 Percent Senior Notes Due 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Semi-Annual Cash Interest Payment | $ 2,300,000 |
Incentive Compensation - Additi
Incentive Compensation - Additional Information (Detail) - shares | Jun. 18, 2015 | Sep. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Sharebasedcompensationarrangementsbysharebasedpaymentawardequityinstrumentsgranted | 4,044,314 | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share awards depending on the performance goals | 0.00% | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share awards depending on the performance goals | 150.00% | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share awards granted in period | 353,940 | |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 277,120 | |
Performance Based Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting Period (in years) | 3 years | |
Time Based Restricted Stock | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting Period (in years) | 3 years | |
Cash Settled Restricted Stock Units [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share awards granted in period | 47,504 | |
Fully-VestedCommonStock [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share awards granted in period | 39,945 | |
Amended Maximum number of shares available [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based incentive compensation plan, maximum number of shares covered | 4,950,000 | |
Additional shares to be authorized2 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 750,000 |
Financial Impact of Stock-Based
Financial Impact of Stock-Based Compensation Expense (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Income before taxes | $ 3,183 | $ 2,101 | $ 7,957 | $ 8,417 |
Net income | $ 1,948 | $ 1,306 | $ 4,973 | $ 5,249 |
Earnings per share: | ||||
Basic earnings per common share, dollars per share | $ 0.05 | $ 0.04 | $ 0.14 | $ 0.14 |
Diluted earnings per common share, dollars per share | $ 0.05 | $ 0.04 | $ 0.14 | $ 0.14 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Nov. 30, 2011ShipyardVesselProgram | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($)Vessel | Dec. 31, 2016USD ($) | Dec. 31, 2013Vessel | |
Unfavorable Regulatory Action | Brazil | |||||
Gain Contingencies [Line Items] | |||||
Company's exposure to claims, net of amount accrued, low range | $ | $ 500,000 | ||||
Company's exposure to claims, net of amount accrued, high range | $ | $ 3,500,000 | ||||
Number of Vessels operating in Brazil | 4 | ||||
Newbuild program #5 | |||||
Gain Contingencies [Line Items] | |||||
Number Of Ship Construction Programs | Program | 5 | ||||
Number Of Construction Shipyards, Domestic | Shipyard | 3 | ||||
Number of vessels to be constructed | 7 | ||||
Number Of Vessels-2 | 24 | ||||
Aggregate cost of OSV newbuild program excluding construction period interest | $ | $ 1,265,000,000 | ||||
Cost incurred on OSV newbuild program | $ | $ 1,169,400,000 | ||||
Percentage of total project cost | 92.40% | ||||
Newbuild program #5 | Fiscal Year 2015 | |||||
Gain Contingencies [Line Items] | |||||
Number Of Vessels-2 | 3 | ||||
Newbuild program #5 | Fiscal Year 2016 | |||||
Gain Contingencies [Line Items] | |||||
Number Of Vessels-2 | 4 | ||||
Offshore Supply Vessel Class 300 | Newbuild program #5 | |||||
Gain Contingencies [Line Items] | |||||
Number of vessels to be constructed | 4 | ||||
Offshore Supply Vessel Class 310 | Newbuild program #5 | |||||
Gain Contingencies [Line Items] | |||||
Number of vessels to be constructed | 5 | ||||
Offshore Supply Vessel Class 320 | Newbuild program #5 | |||||
Gain Contingencies [Line Items] | |||||
Number of vessels to be constructed | 10 | ||||
Multi Purpose Supply Vessel Class 310 Vessel | Newbuild program #5 | |||||
Gain Contingencies [Line Items] | |||||
Number of vessels to be constructed | 5 | ||||
Number of Vessels Placed in Service | 17 | ||||
Subsequent Event [Member] | Newbuild program #5 | |||||
Gain Contingencies [Line Items] | |||||
Estimated Construction Cost, Remainder of Fiscal Year Two | $ | $ 35,000,000 | ||||
Estimated Construction Cost, Remainder of Fiscal Year Three | $ | $ 60,600,000 | ||||
Petrobas [Member] | Brazil | |||||
Gain Contingencies [Line Items] | |||||
Company's exposure to claims, net of amount accrued, low range | $ | $ 500,000 | ||||
Company's exposure to claims, net of amount accrued, high range | $ | 3,000,000 | ||||
ATP Oil and Gas, Inc [Member] | |||||
Gain Contingencies [Line Items] | |||||
Amount owed by ATP | $ | 4,800,000 | ||||
Amount owed by ATP, reserves | $ | $ 900,000 |