EXHIBIT 99.1
![]() | PRESSRELEASE | |
www.caldive.com | ||
Cal Dive International, Inc. • 400 N. Sam Houston Parkway East, Suite 400 • Houston, TX 77060-3500 • 281-618-0400 • Fax: 281-618-0505 |
For Immediate Release Date: November 2, 2004 | Contact: Wade Pursell Title: Chief Financial Officer | 04-019 | ||||
Cal Dive Reports Record Third Quarter Earnings of 59 Cents
HOUSTON, TX — Cal Dive International, Inc. (Nasdaq: CDIS) reported third quarter net income of $22.8 million, or $0.59 per diluted share, a 146% improvement over the year ago net income of $8.9 million, or $0.24 per diluted share. Third quarter revenues of $132.0 million increased 27% over the year ago quarter due primarily to improved levels of oil and gas production and higher commodity prices.
Summary of Results
(in thousands, except per share amounts and percentages)
Third Quarter | Second Quarter | Nine Months | ||||||||||||||||||
2004 | 2003 | 2004 | 2004 | 2003 | ||||||||||||||||
Revenues | $ | 131,897 | $ | 103,855 | $ | 127,701 | $ | 380,403 | $ | 294,594 | ||||||||||
Gross Profit | 45,726 | 24,005 | 41,415 | 118,883 | 67,398 | |||||||||||||||
35 | % | 23 | % | 32 | % | 31 | % | 23 | % | |||||||||||
Net Income | 22,794 | 8,937 | 18,208 | 54,647 | 23,886 | |||||||||||||||
17 | % | 9 | % | 14 | % | 14 | % | 8 | % | |||||||||||
Diluted Earnings per share | 0.59 | 0.24 | 0.47 | 1.41 | 0.63 |
Owen Kratz, Chairman and Chief Executive Officer of Cal Dive, stated, “This was our second successive quarter of record earnings and it is especially noteworthy that we achieved an overall EBITDA margin of 49%. Although the contributions from our Oil and Gas Production segment were flat compared with the second quarter due to the impact of Hurricane Ivan, the performance of the Marine Contracting segment improved sequentially due to seasonality and a gradually improving marketplace. The contribution from our new Production Facilities segment ramped up as expected following the mid-July commencement of production atMarco Polo.
“Following the two record quarters, and with the Marine Contracting segment benefiting from the fourth quarter clean up work, created by Hurricane Ivan, we now estimate 2004 earnings to be between $1.90 and $2.00 per share.”
Financial Highlights
* | Revenues: The $28.0 million increase in year-over-year third quarter revenues reflects significantly higher oil and gas production and increases in commodity prices. | |||
* | Margins: Gross profit margin of 35% was twelve points better than the year ago quarter due primarily to the increased commodity prices and an improved market for the Marine Contracting fleet, especially theQ4000. | |||
* | SG&A: $10.9 million increased $2.3 million from the same period a year ago due to the new Marine Contracting compensation system and the ERT incentive compensation program. With this increase, SG&A was 8% of third quarter revenues, flat with the year ago level. | |||
* | Equity in Earnings: $3.1 million reflects our share of Deepwater Gateway, L.L.C.’s earnings for the quarter. Tariff revenue began this quarter following the beginning of production at theMarco PoloTLP in mid-July. | |||
* | Debt: EBITDA of $64.2 million for the third quarter enabled us to reduce total debt to $149.7 million (from $183 million at June 30, 2004) and build $49.9 million of unrestricted cash. This represents a debt to book capitalization ratio of 23% and a net debt (total debt less unrestricted cash) to book capitalization ratio of 17%. During the third quarter we closed a new $150 million revolving credit facility with a syndicate of banks which was undrawn upon as of September 30, 2004. |
Further details are provided in the slide presentation for Cal Dive’s quarterly conference call (see the Investor Relations page of www.caldive.com). The call, scheduled for 9:00 a.m. Central Standard Time on Wednesday, November 3 will be webcast live. A replay will be available from the Audio Archives page.
Cal Dive International, Inc., headquartered in Houston, Texas, is an energy service company which provides alternate solutions to the oil and gas industry worldwide for marginal field development, alternative development plans, field life extension and abandonment, with service lines including marine diving services, robotics, well operations, facilities ownership and oil and gas production.
This press release and attached presentation contain forward-looking statements that involve risks, uncertainties and assumptions that could cause our results to differ materially from those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, any projections of revenue, gross margin, expenses, earnings or losses from operations, or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statement concerning developments, performance or industry rankings relating to services; any statements regarding future economic conditions or performance; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include the performance of contracts by suppliers, customers and partners; employee management issues; as described from time to time in our reports filed with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the year ending December 31, 2003. We assume no obligation and do not intend to update these forward-looking statements.
CAL DIVE INTERNATIONAL, INC.
Comparative Condensed Consolidated Statements of Operations
Three Months Ended Sept. 30, | Nine Months Ended Sept. 30, | |||||||||||||||
(000's omitted, except per share data) | 2004 | 2003 | 2004 | 2003 | ||||||||||||
(unaudited) | ||||||||||||||||
Net Revenues | $ | 131,987 | $ | 103,855 | $ | 380,403 | $ | 294,594 | ||||||||
Cost of Sales | 86,261 | 79,850 | 261,520 | 227,196 | ||||||||||||
Gross Profit | 45,726 | 24,005 | 118,883 | 67,398 | ||||||||||||
Selling and Administrative | 10,926 | 8,620 | 34,746 | 26,201 | ||||||||||||
Income from Operations | 34,800 | 15,385 | 84,137 | 41,197 | ||||||||||||
Equity in Earnings (Losses) of Deepwater Gateway, L.L.C. | 3,062 | — | 4,372 | (107 | ) | |||||||||||
Interest Expense, net & Other | 838 | 855 | 3,635 | 2,927 | ||||||||||||
Income Before Income Taxes | 37,024 | 14,530 | 84,874 | 38,163 | ||||||||||||
Income Tax Provision | 13,237 | 5,231 | 28,486 | 13,739 | ||||||||||||
Income Before Change in Accounting Principle | 23,787 | 9,299 | 56,388 | 24,424 | ||||||||||||
Cumulative Effect of Change in Accounting Principle, net | — | — | — | 530 | ||||||||||||
Net Income | 23,787 | 9,299 | 56,388 | 24,954 | ||||||||||||
Preferred Stock Dividends and Accretion | 993 | 362 | 1,741 | 1,068 | ||||||||||||
Net Income Applicable to Common Shareholders | $ | 22,794 | $ | 8,937 | $ | 54,647 | $ | 23,886 | ||||||||
Other Financial Data: | ||||||||||||||||
Income from Operations | $ | 34,800 | $ | 15,385 | $ | 84,137 | $ | 41,197 | ||||||||
Equity in Earnings (Losses) of Deepwater Gateway, L.L.C. | 3,062 | — | 4,372 | (107 | ) | |||||||||||
Depreciation and Amortization: | ||||||||||||||||
Marine Contracting | 9,049 | 8,223 | 26,862 | 24,371 | ||||||||||||
Oil and Gas Production | 17,316 | 9,245 | 52,083 | 25,450 | ||||||||||||
EBITDA (1) | $ | 64,227 | $ | 32,853 | $ | 167,454 | $ | 90,911 | ||||||||
Weighted Avg. Shares Outstanding: | ||||||||||||||||
Basic | 38,294 | 37,665 | 38,141 | 37,618 | ||||||||||||
Diluted | 39,418 | 37,776 | 39,413 | 37,715 | ||||||||||||
Earnings Per Share: | ||||||||||||||||
Basic | $ | 0.60 | $ | 0.24 | $ | 1.43 | $ | 0.63 | ||||||||
Diluted | $ | 0.59 | $ | 0.24 | $ | 1.41 | $ | 0.63 | ||||||||
(1) | The Company calculates EBITDA as earnings before net interest expense, taxes, depreciation and amortization. EBITDA and EBITDA margin (defined as EBITDA divided by net revenue) are supplemental non-GAAP financial measurements used by CDI and investors in the marine construction industry in the evaluation of its business due to the measurements being similar to income from operations. |
Comparative Condensed Consolidated Balance Sheets
ASSETS | LIABILITIES & SHAREHOLDERS' EQUITY | |||||||||||||||||
(000's omitted) | Sept. 30, 2004 | Dec. 31, 2003 | Sept. 30, 2004 | Dec. 31, 2003) | ||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||
Current Assets: | Current Liabilities: | |||||||||||||||||
Cash and equivalents | $ | 49,859 | $ | 8,811 | Accounts payable | $ | 39,235 | $ | 50,897 | |||||||||
Accounts receivable | 98,945 | 96,607 | Accrued liabilities | 65,884 | 36,850 | |||||||||||||
Other current assets | 44,761 | 25,232 | Current mat of L-T debt | 8,765 | 16,199 | |||||||||||||
Total Current Assets | 193,565 | 130,650 | Total Current Liabilities | 113,884 | 103,946 | |||||||||||||
Net Property & Equipment: | Long-term debt | 140,919 | 206,632 | |||||||||||||||
Marine Contracting | 413,826 | 420,834 | Deferred income taxes | 115,120 | 89,274 | |||||||||||||
Oil and Gas Production | 171,562 | 197,969 | Decommissioning liabilities | 73,538 | 75,269 | |||||||||||||
Production Facilities — Deepwater Gateway | 54,481 | 34,517 | Other long term liabilities | 1,353 | 2,042 | |||||||||||||
Goodwill | 82,682 | 81,877 | Convertible preferred stock | 54,549 | 24,538 | |||||||||||||
Other assets, net | 28,057 | 16,995 | Shareholders' equity | 444,810 | 381,141 | |||||||||||||
Total Assets | $ | 944,173 | $ | 882,842 | Total Liabilities & Equity | $ | 944,173 | $ | 882,842 | |||||||||