Exhibit 99.1
PRESSRELEASE |
www.caldive.com
Cal Dive International, Inc. · 400 N. Sam Houston Parkway E., Suite 400 · Houston, TX 77060-3500 · 281-618-0400 · fax: 281-618-0505
For Immediate Release | 05-002 |
Contact: | Wade Pursell | |||
Date: March 1, 2005 | Title: | Chief Financial Officer |
Cal Dive Reports Another Quarterly Earnings Record
HOUSTON, TX – Cal Dive International, Inc. (Nasdaq: CDIS) reported fourth quarter net income of $25.3 million or $0.65 per diluted share, after pre-tax charges of $3.9 million, or $0.06 per diluted share, associated with marine asset value impairments. Net income, before charges, increased by 22% sequentially and by 213% compared with the prior year quarter.
Summary of Results
(in thousands, except per share amounts and percentages)
Fourth Quarter | Third Quarter | Year Ending | ||||||||||||||||||
2004 | 2003 | 2004 | 2004 | 2003 | ||||||||||||||||
Revenues | $ | 162,990 | $ | 101,675 | $ | 131,987 | $ | 543,392 | $ | 396,269 | ||||||||||
Gross Profit | 53,030 | 24,685 | 45,726 | 171,912 | 92,083 | |||||||||||||||
33 | % | 24 | % | 35 | % | 32 | % | 23 | % | |||||||||||
Net Income | 25,269 | 8,884 | 22,794 | 79,916 | 32,771 | |||||||||||||||
16 | % | 9 | % | 17 | % | 15 | % | 8 | % | |||||||||||
Diluted Earnings Per Share | 0.65 | 0.23 | 0.59 | 2.06 | 0.87 |
Owen Kratz, Chairman and Chief Executive Officer of Cal Dive, stated, “This was our third consecutive quarter of record earnings, which capped a memorable year of performance and profitability. Our people worked tirelessly and diligently to achieve optimum results. Return on capital (tax effected earnings before net interest expense divided by average debt and equity) of 14% and EBITDA margins of 44% are just two measures of our success throughout the year.
“At the start of 2005 we are witnessing clearly improving market conditions for our Marine Contracting services and strong contribution from our Oil and Gas Production division. Additionally, we expect a ramp up in contribution from our Production Facilities business in the second half of 2005.”
Financial Highlights
• | Revenues: The $61.3 million increase in year-over-year fourth quarter revenues reflects not only higher oil and gas production and increases in commodity prices but also a significant improvement in Marine Contracting revenues driven by Hurricane Ivan work and improved market conditions. | |||
• | Margins: 33% was nine points better than the year-ago quarter due primarily to the increased commodity prices. Marine Contracting margins were higher as a result of improved utilization and rates, but were offset by marine asset value impairment charges. During Q4, we decided to sell theMerlinand accordingly wrote down her book value to expected sales price. In addition, book values for two shelf assets were deemed impaired and written down to realizable value. Total pre-tax charges were $3.9 million. | |||
• | SG&A: $14.1 million increased $4.4 million from the same period a year ago due primarily to our incentive compensation programs and related improved financial results. With this increase, SG&A was 9% of fourth quarter revenues, compared to 10% a year ago. | |||
• | Equity in Earnings: $3.6 million reflects our share of Deepwater Gateway, L.L.C.’s earnings for the quarter. This reflects a 16% increase over the third quarter as production at theMarco Polofacility began to ramp up. | |||
• | Debt: EBITDA of $71.8 million for the quarter enabled us to reduce total debt to $149 million and increase unrestricted cash to $91 million as of year-end. This represents a debt to book capitalization ratio of 22% and a net debt (total debt less unrestricted cash) to book capitalization ratio of 10%. |
Further details are provided in the 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, March 2, 2005, 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 | Twelve Months | |||||||||||||||
Ended Dec. 31, | Ended Dec. 31, | |||||||||||||||
(000’s omitted, except per share data) | 2004 | 2003 | 2004 | 2003 | ||||||||||||
(unaudited) | ||||||||||||||||
Net Revenues | $ | 162,990 | $ | 101,675 | $ | 543,392 | $ | 396,269 | ||||||||
Cost of Sales | 109,960 | 76,990 | 371,480 | 304,186 | ||||||||||||
Gross Profit | 53,030 | 24,685 | 171,912 | 92,083 | ||||||||||||
Selling and Administrative | 14,135 | 9,721 | 48,881 | 35,922 | ||||||||||||
Income from Operations | 38,895 | 14,964 | 123,031 | 56,161 | ||||||||||||
Equity in Earnings (Losses) of Deepwater Gateway, L.L.C. | 3,555 | 20 | 7,927 | (87 | ) | |||||||||||
Interest Expense, net & Other | 1,631 | 477 | 5,265 | 3,403 | ||||||||||||
Income Before Income Taxes | 40,819 | 14,507 | 125,693 | 52,671 | ||||||||||||
Income Tax Provision | 14,548 | 5,254 | 43,034 | 18,993 | ||||||||||||
Income Before Change in Accounting Principle | 26,271 | 9,253 | 82,659 | 33,678 | ||||||||||||
Cumulative Effect of Change in Accounting Principle, net | — | — | — | 530 | ||||||||||||
Net Income | 26,271 | 9,253 | 82,659 | 34,208 | ||||||||||||
Preferred Stock Dividends and Accretion | 1,002 | 369 | 2,743 | 1,437 | ||||||||||||
Net Income Applicable to Common Shareholders | $ | 25,269 | $ | 8,884 | $ | 79,916 | $ | 32,771 | ||||||||
Other Financial Data: | ||||||||||||||||
Income from Operations | $ | 38,895 | $ | 14,964 | $ | 123,031 | $ | 56,161 | ||||||||
Equity in Earnings (Losses) of Deepwater Gateway, L.L.C. | 3,555 | 20 | 7,927 | (87 | ) | |||||||||||
Depreciation and Amortization: | ||||||||||||||||
Marine Contracting | 12,397 | 8,531 | 39,259 | 32,902 | ||||||||||||
Oil and Gas Production | 16,963 | 12,441 | 69,046 | 37,891 | ||||||||||||
EBITDA (1) | $ | 71,810 | $ | 35,956 | $ | 239,263 | $ | 126,867 | ||||||||
Weighted Avg. Shares Outstanding: | ||||||||||||||||
Basic | 38,395 | 37,836 | 38,204 | 37,740 | ||||||||||||
Diluted | 39,615 | 37,933 | 39,531 | 37,844 | ||||||||||||
Earnings Per Share: | ||||||||||||||||
Basic | $ | 0.66 | $ | 0.23 | $ | 2.09 | $ | 0.87 | ||||||||
Diluted | $ | 0.65 | $ | 0.23 | $ | 2.06 | $ | 0.87 | ||||||||
(1) | The Company calculates EBITDA as earnings before net interest expense, taxes, depreciation and amortization (which includes non-cash asset impairments). 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. |
CAL DIVE INTERNATIONAL, INC.
Comparative Condensed Consolidated Balance Sheets
ASSETS | LIABILITIES & SHAREHOLDERS’ EQUITY | |||||||||||||||||||
(000’s omitted) | Dec. 31, 2004 | Dec. 31, 2003 | Dec. 31, 2004 | Dec. 31, 2003 | ||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||
Current Assets: | Current Liabilities: | |||||||||||||||||||
Cash and equivalents | $91,142 | $8,811 | Accounts payable | $56,047 | $50,897 | |||||||||||||||
Accounts receivable | 114,709 | 96,607 | Accrued liabilities | 75,502 | 36,850 | |||||||||||||||
Other current assets | 48,110 | 25,232 | Current mat of L-T debt | 9,613 | 16,199 | |||||||||||||||
Total Current Assets | 253,961 | 130,650 | Total Current Liabilities | 141,162 | 103,946 | |||||||||||||||
Net Property & Equipment: | Long-term debt | 138,947 | 206,632 | |||||||||||||||||
Marine Contracting | 411,596 | 420,834 | Deferred income taxes | 133,777 | 89,274 | |||||||||||||||
Oil and Gas Production | 172,821 | 197,969 | Decommissioning liabilities | 79,490 | 75,269 | |||||||||||||||
Investments in Production Facilities | 67,192 | 34,517 | Other long term liabilities | 5,090 | 2,042 | |||||||||||||||
Goodwill | 84,193 | 81,877 | Convertible preferred stock | 55,000 | 24,538 | |||||||||||||||
Other assets, net | 48,995 | 16,995 | Shareholders’ equity | 485,292 | 381,141 | |||||||||||||||
Total Assets | $1,038,758 | $882,842 | Total Liabilities & Equity | $1,038,758 | $882,842 | |||||||||||||||