Exhibit 99.1
2500 CityWest Boulevard Suite 2200 Houston, TX 77042 (713) 361-2600 |
FOR IMMEDIATE RELEASE May 1, 2013 | Contact: Brent Smith Executive Vice President, Chief Financial Officer and Treasurer (713) 361-2634 |
· | Backlog: Contracted backlog was $221 million as of March 31, 2013. This compares to backlog of $172 million at December 31, 2012 and $260 million at March 31, 2012. Of this backlog, $168 million relates to international work with the remainder relating to work in the U.S. Gulf of Mexico and 85% is expected to be performed in 2013. |
· | Revenues: First quarter 2013 revenues increased by $20.9 million to $80.9 million compared to the first quarter 2012. The 35% increase in revenues is primarily attributable to the Uncle John working for nearly the entire quarter compared to no utilization during the same quarter last year due to its regulatory drydock. Also, higher revenue in Australia from increased activity and a large lump sum project as well as activity in West Africa provided significant revenue growth from last year. These increases were offset by lower utilization and pricing for the Company's domestic diving fleet and low construction activity. |
· | Gross Loss: First quarter 2013 gross loss was $11.5 million, an improvement of $4.9 million, or 30%, compared to the first quarter 2012. The improvement from last year is primarily attributable to the Uncle John utilization and the bareboat charter of the Kestrel in Mexico. These improvements were offset by the deterioration in domestic diving results as well as a loss incurred on a lump sum project in Australia due to project scheduling changes with demobilization of third party equipment and cost overruns from adverse weather, in the form of cyclones, during project execution. |
· | G&A: First quarter 2013 G&A decreased by $1.6 million to $11.9 million as compared to first quarter 2012. The decrease is primarily due to lower stock based compensation expense and headcount reductions relating to the continuing effect of cost savings initiatives implemented in mid-2012. As a percentage of revenues, G&A was 14.7% for the first quarter 2013 compared to 22.5% for the first quarter 2012. |
· | Interest Expense: First quarter 2013 net interest expense increased by $2.3 million to $4.6 million as compared to first quarter 2012, primarily due to the non-cash interest expense relating to the accretion of the debt discount on the Company's convertible debt. |
· | Income Tax: The effective tax benefit rate for the first quarter 2013 was 32.9% compared to a tax benefit rate of 25.1% for the first quarter 2012. The lower tax benefit rate for first quarter 2012 was due to a larger portion of pre-tax loss being generated in tax jurisdictions with lower tax rates in the first quarter 2012 compared to the first quarter 2013. |
· | Balance Sheet: As of March 31, 2013, total debt consisted of $86.25 million in convertible notes, $41.5 million under a term loan and $32.7 million outstanding under a revolving credit facility. Cash and cash equivalents were $11.1 million, for a net debt position of $149.3 million at March 31, 2013, compared to net debt positions of $151.8 million at December 31, 2012 and $160.8 million at March 31, 2012. The net secured debt amount that is subject to financial covenants was $64.1 million at March 31, 2013 and $65.5 million at December 31, 2012. Total debt presented on the consolidated balance sheet is net of a debt discount of $21.8 million on the Company's convertible debt. |
CAL DIVE INTERNATIONAL, INC. and SUBSIDIARIES Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2013 | 2012 | ||||||||
(unaudited) | |||||||||
Revenues | $ | 80,919 | $ | 60,017 | |||||
Cost of sales | 92,436 | 76,437 | |||||||
Gross loss | (11,517 | ) | (16,420 | ) | |||||
General and administrative expenses | 11,909 | 13,492 | |||||||
Asset impairment | 125 | 1,351 | |||||||
Loss on sale of assets | 20 | 189 | |||||||
Operating loss | (23,571 | ) | (31,452 | ) | |||||
Interest expense, net | 4,632 | 2,300 | |||||||
Interest expense - adjustment to conversion feature of convertible debt | 63 | - | |||||||
Other (income) expense, net | 79 | (341 | ) | ||||||
Loss before income taxes | (28,345 | ) | (33,411 | ) | |||||
Income tax benefit | (9,319 | ) | (8,389 | ) | |||||
Net loss | (19,026 | ) | (25,022 | ) | |||||
Loss attributable to noncontrolling interest | (1,376 | ) | (717 | ) | |||||
Loss attributable to Cal Dive | $ | (17,650 | ) | $ | (24,305 | ) | |||
Loss per share attributable to Cal Dive: | |||||||||
Basic and diluted | $ | (0.19 | ) | $ | (0.26 | ) | |||
Weighted average shares outstanding: | |||||||||
Basic and diluted | 93,732 | 92,677 | |||||||
Other financial data: | |||||||||
Depreciation and amortization | $ | 14,180 | $ | 14,636 | |||||
Non-cash stock compensation expense | 1,448 | 2,378 | |||||||
EBITDA | (6,521 | ) | (11,954 | ) | |||||
CAL DIVE INTERNATIONAL, INC. and SUBSIDIARIES | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(in thousands) | ||||||||
March 31, | December 31, | |||||||
2013 | 2012 | |||||||
ASSETS | (unaudited) | |||||||
Current assets: | ||||||||
Cash | $ | 11,050 | $ | 8,343 | ||||
Accounts receivable, net | 103,220 | 135,205 | ||||||
Other current assets | 35,540 | 36,361 | ||||||
Total current assets | 149,810 | 179,909 | ||||||
Net property and equipment | 415,034 | 423,536 | ||||||
Other assets, net | 26,724 | 27,228 | ||||||
Total assets | $ | 591,568 | $ | 630,673 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 69,160 | $ | 73,480 | ||||
Other current liabilities | 35,113 | 37,995 | ||||||
Current maturities of long-term debt | 4,821 | 4,219 | ||||||
Total current liabilities | 109,094 | 115,694 | ||||||
Long-term debt | 133,783 | 133,116 | ||||||
Derivative liability for conversion feature of convertible debt | 22,519 | 22,456 | ||||||
Other long-term liabilities | 75,782 | 91,132 | ||||||
Total liabilities | 341,178 | 362,398 | ||||||
Total equity | 250,390 | 268,275 | ||||||
Total liabilities and equity | $ | 591,568 | $ | 630,673 | ||||
Reconciliation of Non-GAAP Financial Measures For the Periods Ended March 31, 2013 and 2012 (in thousands) | ||||
In addition to net income, one primary measure that the Company uses to evaluate financial performance is earnings before net interest expense, taxes, depreciation and amortization, or EBITDA. The Company includes other non-cash items and adjustments in its definition of EBITDA outlined below. The Company uses EBITDA to measure operational strengths and the performance of its business and not to measure liquidity. EBITDA does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues, and should be considered in addition to, and not as a substitute for, net income and other measures of financial performance reported in accordance with GAAP. Furthermore, EBITDA presentations may vary among companies; thus, the Company's EBITDA may not be comparable to similarly titled measures of other companies.
The Company believes EBITDA is useful as a measurement tool because it helps investors evaluate and compare operating performance from period to period by removing the impact of capital structure (primarily interest charges from outstanding debt) and asset base (primarily depreciation and amortization of vessels) from operating results. The Company's management uses EBITDA in communications with lenders, rating agencies and others, concerning financial performance.
The following table presents a reconciliation of EBITDA to income (loss) attributable to Cal Dive, which is the most directly comparable GAAP financial measure of the Company's operating results:(all amounts in thousands) | Three Months Ended | |||||||
March 31, | ||||||||
2013 | 2012 | |||||||
EBITDA (unaudited) | $ | (6,521 | ) | $ | (11,954 | ) | ||
Less: Depreciation & amortization | 14,180 | 14,636 | ||||||
Less: Income tax benefit | (9,319 | ) | (8,389 | ) | ||||
Less: Net interest expense | 4,632 | 2,300 | ||||||
Less: Interest expense - conversion feature adjustment | 63 | - | ||||||
Less: Non-cash stock compensation expense | 1,448 | 2,378 | ||||||
Less: Severance charges | - | 75 | ||||||
Less: Non-cash impairment charges | 125 | 1,351 | ||||||
Loss Attributable to Cal Dive | $ | (17,650 | ) | $ | (24,305 | ) | ||
As of 3/31/13 | ||||||||
Total Debt (1) | $ | 160,401 | ||||||
Less: Cash | (11,050 | ) | ||||||
Net Debt | $ | 149,351 | ||||||
(1) Total debt consists of outstanding balances on revolver, term loan and the | ||||||||
principal amount of convertible debt. | ||||||||