2500 CityWest Boulevard Suite 2200 Houston, TX 77042 (713) 361-2600 |
FOR IMMEDIATE RELEASE May 8, 2014 | Contact: Brent Smith Executive Vice President, Chief Financial Officer and Treasurer (713) 361-2634 |
· | Backlog: Contracted backlog was $282 million as of March 31, 2014. This compares to backlog of $249 million at December 31, 2013 and $221 million at March 31, 2013. Of this backlog, $179 million relates to international work with the remainder relating to work in the U.S. Gulf of Mexico and 89% is expected to be performed in 2014. |
· | Revenues: First quarter 2014 revenues increased by $38.2 million to $119.1 million compared to the first quarter 2013. The 47% increase in revenues is primarily attributable to increased activity in Latin America partially offset by lower revenues in other regions in part due to the re-deployment of assets. |
· | Gross Loss: First quarter 2014 gross loss was $6.2 million, an improvement of $5.3 million, or 46%, compared to the first quarter 2013. The improvement from last year is primarily attributable to increased activity in Latin America and increased utilization for the DLB Sea Horizon in Southeast Asia partially offset by lower utilization domestically. |
· | Interest Expense: First quarter 2014 net interest expense increased by $1.0 million to $5.6 million as compared to first quarter 2013, primarily due to higher outstanding borrowings due to working capital needs in Mexico, offset by interest received in connection with the collection of an overdue receivable from a customer in China. |
· | Income Tax: The effective tax benefit rate for the first quarter 2014 was 34.4% compared to a tax benefit rate of 32.9% for the first quarter 2013. |
· | Balance Sheet: As of March 31, 2014, total debt consisted of $86.25 million in convertible notes, $29.7 million under a senior secured term loan, $105.3 million outstanding under a revolving credit facility and $20.0 million under an unsecured term loan. Cash and cash equivalents were $3.3 million, for a net debt position of $237.9 million at March 31, 2014, compared to a net debt position of $200.0 million at December 31, 2013. The increase in net debt is primarily due to the continued working capital needs for the Company's four projects in Mexico. The net secured debt amount that is subject to financial covenants was $131.7 million at March 31, 2014, compared to $93.8 million at December 31, 2013. Total debt presented on the consolidated balance sheet at March 31, 2014 is net of a debt discount of $17.7 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, | |||||||||
2014 | 2013 | ||||||||
(unaudited) | |||||||||
Revenues | $ | 119,104 | $ | 80,919 | |||||
Cost of sales | 125,323 | 92,436 | |||||||
Gross loss | (6,219 | ) | (11,517 | ) | |||||
General and administrative expenses | 10,027 | 11,909 | |||||||
Asset impairment | - | 125 | |||||||
(Gain) loss on sale of assets, net | (1,612 | ) | 20 | ||||||
Operating loss | (14,634 | ) | (23,571 | ) | |||||
Interest expense, net | 5,608 | 4,632 | |||||||
Interest expense - adjustment to conversion feature of convertible debt | - | 63 | |||||||
Other (income) expense, net | (194 | ) | 79 | ||||||
Loss before income taxes | (20,048 | ) | (28,345 | ) | |||||
Income tax benefit | (6,897 | ) | (9,319 | ) | |||||
Net loss | (13,151 | ) | (19,026 | ) | |||||
Loss attributable to noncontrolling interest | (100 | ) | (1,376 | ) | |||||
Loss attributable to Cal Dive | $ | (13,051 | ) | $ | (17,650 | ) | |||
Loss per share attributable to Cal Dive: | |||||||||
Basic and diluted | $ | (0.14 | ) | $ | (0.19 | ) | |||
Weighted average shares outstanding: | |||||||||
Basic and diluted | 95,081 | 93,732 | |||||||
Other financial data: | |||||||||
Depreciation and amortization | $ | 14,360 | $ | 14,180 | |||||
Non-cash stock compensation expense | 935 | 1,448 | |||||||
Severance | 1,045 | - | |||||||
EBITDA | 2,000 | # | (6,521 | ) |
CAL DIVE INTERNATIONAL, INC. and SUBSIDIARIES | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(in thousands) | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
ASSETS | (unaudited) | |||||||
Current assets: | ||||||||
Cash | $ | 3,299 | $ | 12,190 | ||||
Accounts receivable, net | 208,754 | 180,582 | ||||||
Other current assets | 42,372 | 37,271 | ||||||
Total current assets | 254,425 | 230,043 | ||||||
Net property and equipment | 369,173 | 388,580 | ||||||
Other assets, net | 34,919 | 32,059 | ||||||
Total assets | $ | 658,517 | $ | 650,682 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 106,337 | $ | 114,663 | ||||
Other current liabilities | 41,829 | 33,342 | ||||||
Current maturities of long-term debt | 13,989 | 13,989 | ||||||
Total current liabilities | 162,155 | 161,994 | ||||||
Long-term debt | 209,568 | 179,464 | ||||||
Other long-term liabilities | 57,160 | 67,207 | ||||||
Total liabilities | 428,883 | 408,665 | ||||||
Total equity | 229,634 | 242,017 | ||||||
Total liabilities and equity | $ | 658,517 | $ | 650,682 |
Reconciliation of Non-GAAP Financial Measures For the Periods Ended March 31, 2014 and 2013 (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, | |||||||
2014 | 2013 | |||||||
EBITDA (unaudited) | $ | 2,000 | $ | (6,521 | ) | |||
Less: Depreciation & amortization | 14,360 | 14,180 | ||||||
Less: Income tax benefit | (6,897 | ) | (9,319 | ) | ||||
Less: Net interest expense | 5,608 | 4,632 | ||||||
Less: Interest expense - conversion feature adjustment | - | 63 | ||||||
Less: Non-cash stock compensation expense | 935 | 1,448 | ||||||
Less: Severance charges | 1,045 | - | ||||||
Less: Non-cash impairment charges | - | 125 | ||||||
Loss Attributable to Cal Dive | $ | (13,051 | ) | $ | (17,650 | ) | ||
As of 3/31/14 | ||||||||
Total Debt (1) | $ | 241,211 | ||||||
Less: Cash | (3,299 | ) | ||||||
Net Debt | $ | 237,912 | ||||||
(1) Total debt consists of outstanding balances on a revolver, secured term loan, unsecured term loan and | ||||||||
the principal amount of convertible debt. | ||||||||