Tidewater (TDW) 8-K Tidewater Reports Fourth Quarter Results and Year End Earnings For Fiscal 2011

  Exhibit 99.1     Press Release 

TIDEWATER INC.Ÿ Pan-American Life CenterŸ 601 Poydras Street, Suite 1900Ÿ New Orleans, LA 70130Ÿ Telephone (504) 568-1010Ÿ Fax (504) 566-4582

Tidewater Reports Fourth Quarter Results and Year End Earnings For Fiscal 2011

NEW ORLEANS, LA. May 19, 2011 -- Tidewater Inc. (NYSE:TDW) announced today fourth quarter net earnings for the period ended March 31, 2011, of $12.0 million, or $0.23 per share, on revenues of $254.0 million. For fiscal year ended March 31, 2011, net earnings were $105.6 million, or $2.05 per share, on revenues of $1,055.4 million. For fiscal year ended March 31, 2010, net earnings were $259.5 million, or $5.02 per share, on revenues of $1,168.6 million.

Included in net earnings for the March 31, 2011 quarter are:

• a $6.3 million ($6.3 million after-tax, or $0.12 per common share) charge to general and administrative expenses related to a previously disclosed settlement with the Federal Government of Nigeria.

• a $3.9 million ($3.0 million after-tax, or $0.06 per common share) impairment charge included in “Gain on asset disposition, net” related to a write-down to estimated fair market value of eleven vessels and related parts inventory that are expected to be sold to a scrap dealer.

• an effective income tax rate for the quarter of 52.6%, in part reflecting the impact of the two previously discussed charges which have virtually no related tax benefits. The quarterly effective tax rate also reflects an increase in the Company’s estimated annual effective tax rate exclusive of discrete items (including the two discussed above) from approximately 23% to the final fiscal 2011 effective tax rate excluding discrete items of approximately 26%. The impact of this increased tax rate on fourth quarter diluted earnings per share totaled $0.10, with $0.02 per common share pertaining to fourth quarter earnings and $0.08 per common share related to the cumulative effect on income tax expense related to the three prior quarters’ earnings.

Included in net earnings for the March 31, 2010 quarter are:

• a $5.4 million ($3.5 million after-tax, or $0.07 per common share) reduction of the previously recorded “Provision for Venezuelan operations, net” as a result of net collections from insurance underwriters for the insured value of the vessels seized earlier in fiscal 2010 by Petroleos de Venezuela, S.A. (PDVSA) and an affiliate of PDVSA.

• an $11.0 million ($11.0 million after-tax, or $0.21 per common share) foreign exchange gain recognized as a result of the devaluation of the Venezuelan Bolivar fuerte during the quarter.

• an $11.4 million ($11.4 million after-tax, or $0.22 per common share) charge to general and administrative expenses related to an agreement in principle the company reached with the staff of the Securities and Exchange Commission to resolve issues associated with the previously disclosed internal investigation.

1

As previously announced, Tidewater will hold a conference call to discuss March quarterly and annual earnings on Thursday, May 19, 2011, at 10:00 a.m. Central time. Investors and interested parties may listen to the teleconference via telephone by calling 1-888-388-7493 if calling from the U.S. or Canada (1-706-679-8348 if calling from outside the U.S.) and ask for the “Tidewater” call just prior to the scheduled start. A replay of the conference call will be available beginning at 12:00 p.m. Central time on May 19, 2011, and will continue until 11:59 p.m. Central time on May 21, 2011. To hear the replay, call 1-800-642-1687 or (1-706-645-9291 if calling from outside the U.S.). The conference call ID number is 52339398.

A simultaneous webcast of the conference call will be accessible online at the Tidewater Inc. website,www.tdw.com. The online replay will be available until June 19, 2011. Upon completion of the conference call, the company will also file a Form 8-K with the SEC, which will include a transcript of the conference call.

Tidewater Inc. owns 378 vessels, the world’s largest fleet of vessels serving the global offshore energy industry.

Note: all per-share amounts are stated on a diluted basis.

CONTACT: Tidewater Inc., New Orleans

Joe Bennett, Executive Vice President and Chief Investor Relations Officer

504-566-4506

Financial information is displayed on the next page.

2

TIDEWATER INC.

CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except share and per share data)

	Quarter Ended     March 31,						Year Ended     March 31,
	2011			2010			2011			2010
Revenues:
Vessel revenues	$	252,714			258,656			1,051,213			1,138,162
Other marine revenues		1,274			1,340			4,175			30,472
		253,988			259,996			1,055,388			1,168,634
Costs and expenses:
Vessel operating costs		153,518			145,894			638,590			605,259
Costs of other marine revenues		1,257			1,240			4,660			27,387
Depreciation and amortization		34,723			33,541			140,576			130,184
General and administrative		41,522			44,182			145,454			149,932
Provision for Venezuelan operations, net		---			(5,350	)		---			43,720
Gain on asset dispositions, net		(1,607	)		(5,115	)		(13,228	)		(28,178	)
		229,413			214,392			916,052			928,304
Operating income		24,575			45,604			139,336			240,330
Other income (expenses):
Foreign exchange gain (loss)		131			8,771			2,278			4,094
Equity in net earnings of unconsolidated companies		3,419			3,403			12,185			18,107
Interest income and other, net		1,584			2,234			5,065			6,882
Interest and other debt costs		(4,364	)		(569	)		(10,769	)		(1,679	)
		770			13,839			8,759			27,404
Earnings before income taxes		25,345			59,443			148,095			267,734
Income tax expense		13,326			2,530			42,479			8,258
Net earnings	$	12,019			56,913			105,616			259,476
Basic earnings per common share	$	.23			1.11			2.06			5.04
Diluted earnings per common share	$	.23			1.10			2.05			5.02
Weighted average common shares outstanding		51,198,831			51,456,393			51,221,800			51,447,077
Incremental common shares from stock options		366,743			253,415			265,283			241,953
Adjusted weighted average common shares		51,565,574			51,709,808			51,487,083			51,689,030
Cash dividends declared per common share    $		.25			.25			1.00			1.00

3

TIDEWATER INC.

CONSOLIDATED BALANCE SHEETS

March 31, 2011 and 2010

(In thousands, except share and par value data)

ASSETS	2011			2010
Current assets:
Cash and cash equivalents	$	245,720			223,070
Trade and other receivables, less allowance for doubtful accounts of $50,677 in 2011 and $38,632 in 2010		272,467			311,617
Marine operating supplies		50,748			44,237
Other current assets		10,212			6,703
Total current assets		579,147			585,627
Investments in, at equity, and advances to unconsolidated companies		39,044			40,614
Properties and equipment:
Vessels and related equipment		3,910,430			3,455,322
Other properties and equipment		85,589			82,007
		3,996,019			3,537,329
Less accumulated depreciation and amortization		1,294,239			1,283,505
Net properties and equipment		2,701,780			2,253,824
Goodwill		328,754			328,754
Other assets		99,391			84,538
Total assets	$	3,748,116			3,293,357
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities on long-term debt		---			25,000
Accounts payable		45,177			41,673
Accrued expenses		120,869			119,485
Accrued property and liability losses		3,846			4,809
Other current liabilities		13,697			13,745
Total current liabilities		183,589			204,712
Long-term debt		700,000			275,000
Deferred income taxes		216,735			211,504
Accrued property and liability losses		5,327			12,809
Other liabilities and deferred credits		128,521			125,302
Commitments and Contingencies
Stockholders’ equity:
Common stock of $0.10 par value, 125,000,000 shares authorized, issued 51,876,038 shares at March 31, 2011 and 51,830,048 shares at March 31, 2010		5,188			5,183
Additional paid-in capital		90,204			73,203
Retained earnings		2,436,736			2,402,575
Accumulated other comprehensive loss		(18,184	)		(16,931	)
Total stockholders’ equity		2,513,944			2,464,030
Total liabilities and stockholders’ equity	$	3,748,116			3,293,357

4

TIDEWATER INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Years Ended March 31, 2011 and 2010 (In thousands)		2011		2010
Operating activities:
Net earnings	$	105,616		259,476
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		140,576		130,184
Provision (benefit) for deferred income taxes		(6,849	)	569
Reversal of liabilities for uncertain tax positions		---		(36,110	)
Gain on asset dispositions, net		(13,228	)	(28,178	)
Provision for Venezuelan operations, net		---		43,720
Equity in earnings of unconsolidated companies, net of dividends		1,570		(3,336	)
Compensation expense – stock based		15,482		8,740
Excess tax benefit on stock options exercised		(1,190	)	(72	)
Changes in assets and liabilities, net:
Trade and other receivables		15,272		(20,458	)
Marine operating supplies		(4,511	)	4,490
Other current assets		(3,509	)	(338	)
Accounts payable		3,504		(12,657	)
Accrued expenses		(7,080	)	6,119
Accrued property and liability losses		(963	)	(712	)
Other current liabilities		12,675		(21,889	)
Other liabilities and deferred credits		6,219		(3,115	)
Other, net		622		1,828
Net cash provided by operating activities		264,206		328,261
Cash flows from investing activities:
Proceeds from sales of assets		37,196		51,735
Proceeds from sales/leaseback of assets		---		101,755
Proceeds from insurance settlements on Venezuela seized vessels		8,150		---
Additions to properties and equipment		(615,289	)	(451,973	)
Other		---		1
Net cash used in investing activities		(569,943	)	(298,482	)
Cash flows from financing activities:
Principal payments on debt		(190,000	)	---
Debt borrowings		590,000		---
Debt issuance costs		(10,032	)	(7,712	)
Proceeds from exercise of stock options		8,695		1,872
Cash dividends		(51,478	)	(51,734	)
Excess tax benefit on stock options exercised		1,190		72
Stock repurchases		(19,988	)	---
Net cash provided by (used in) financing activities		328,387		(57,502	)
Net change in cash and cash equivalents		22,650		(27,723	)
Cash and cash equivalents at beginning of year		223,070		250,793
Cash and cash equivalents at end of year	$	245,720		223,070
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest	$	15,957		14,951
Income taxes	$	48,365		57,571

5

The company’s vessel revenues and vessel operating expenses and the related percentage of total vessel revenues for the quarters and the years ended March 31, 2011 and 2010 and for the quarter ended December 31, 2010, were as follows:

		Quarter Ended March 31,								Year Ended March 31,								Quarter Ended December 31,
(In thousands)		2011		%		2010		%		2011		%		2010		%		2010		%
Vessel revenues:
International	$		234,608		93%		236,081		91%		962,522		92%		1,048,553		92%		249,190		92%
United States			18,106		7%		22,575		9%		88,691		8%		89,609		8%		20,443		8%
Vessel revenues			252,714		100%		258,656		100%		1,051,213		100%		1,138,162		100%		269,633		100%
Vessel operating costs:
Crew costs	$		83,081		33%		79,282		31%		338,126		32%		320,229		28%		84,412		31%
Repair and maintenance			25,505		10%		22,941		9%		110,496		11%		104,413		9%		26,107		10%
Insurance and loss reserves			4,607		2%		3,154		1%		19,601		2%		12,948		1%		6,071		2%
Fuel, lube and supplies			14,027		6%		15,372		6%		61,784		6%		56,637		5%		16,399		6%
Vessel operating leases			4,492		2%		4,490		2%		17,964		2%		15,054		1%		4,492		2%
Other			21,806		9%		20,655		8%		90,619		9%		95,978		8%		23,116		9%
Total vessel operating costs			153,518		61%		145,894		56%		638,590		61%		605,259		53%		160,597		60%
Vessel operating margin (A)	$		99,196		39%		112,762		44%		412,623		39%		532,903		47%		109,036		40%

Note (A): The following table reconciles vessel operating margin as presented above to operating income for the quarters and the years ended March 31, 2011 and 2010 and for the quarter ended December 31, 2010:

	Quarter Ended March 31,						Year Ended March 31,						Quarter Ended December 31,
(In thousands)	2011			2010			2011			2010			2010
Vessel operating margin	$	99,196			112,762			412,623			532,903			109,036
Other marine revenues		1,274			1,340			4,175			30,472			2,142
Costs of other marine revenues		(1,257	)		(1,240	)		(4,660	)		(27,387	)		(2,705	)
Depreciation and amortization		(34,723	)		(33,541	)		(140,576	)		(130,184	)		(35,058	)
General and administrative		(41,522	)		(44,182	)		(145,454	)		(149,932	)		(33,238	)
Provision for Venezuelan operations		---			5,350			---			(43,720	)		---
Gain on asset dispositions, net		1,607			5,115			13,228			28,178			2,425
Operating income	$	24,575			45,604			139,336			240,330			42,602

The company’s operating profit and other components of earnings before income taxes and its related percentage of total revenues for the quarters and the years ended March 31, 2011 and 2010 and for the quarter ended December 31, 2010, were as follows:

		Quarter Ended March 31,												Year Ended March 31,												Ended December 31,
(In thousands)		2011			%			2010			%			2011			%			2010			%			2010			%
Marine operating profit:
Vessel activity:
International	$		38,984			15%			56,979			22	%		162,051			15%			252,354			22%			48,937			18%
United States			(364	)		(<1%	)		3,826			1	%		11,581			1%			9,196			1%			1,210			<1%
			38,620			15%			60,805			23	%		173,632			16%			261,550			22%			50,147			18%
Corporate expenses			(15,546	)		(6%	)		(20,200	)		(8	%)		(46,361	)		(4%	)		(51,432	)		(4%	)		(9,188	)		(3%)
Gain on asset dispositions, net			1,607			1%			5,115			2	%		13,228			1%			28,178			2%			2,425			1%
Other marine services			(106	)		(<1%	)		(116	)		(<1	%)		(1,163	)		(<1%	)		2,034			<1%			(782	)		(<1%)
Operating income			24,575			10%			45,604			18	%		139,336			13%			240,330			21%			42,602			16%
Foreign exchange gain (loss)			131			<1%			8,771			3	%		2,278			<1%			4,094			<1%			973			<1%
Equity in net earnings of unconsolidated companies			3,419			1%			3,403			1	%		12,185			1%			18,107			2%			3,291			1%
Interest income and other, net			1,584			1%			2,234			1	%		5,065			<1%			6,882			1%			1,074			<1%
Interest and other debt costs			(4,364	)		(2%	)		(569	)		(<1	%)		(10,769	)		(1%	)		(1,679	)		(<1%	)		(3,646	)		(1%)
Earnings before income taxes	$		24,345			10%			59,443			23	%		148,095			14%			267,734			23%			44,294			16%

6

The company’s revenues, vessel utilization percentages and average day rates by vessel class and in total for the quarters and the years ended March 31, 2011 and 2010 and the quarter ended December 31, 2010, were as follows:

	Quarter Ended      March 31,					Year Ended     March 31,				Quarter Ended December 31,
	2011			2010		2011		2010		2010
REVENUES BY VESSEL CLASS (In thousands):
International-based fleet:
Deepwater vessels	$	86,524			82,285		360,852		306,763		96,540
Towing-supply/supply		118,806			125,087		485,112		616,240		122,412
Crew/utility		20,979			19,528		80,435		87,303		20,534
Offshore tugs		8,299			9,181		36,123		37,680		9,704
Other		---			---		---		567		---
Total	$	234,608			236,081		962,522		1,048,553		249,190
United States-based fleet:
Deepwater vessels	$	9,385			15,160		55,478		55,725		12,373
Towing-supply/supply		8,721			6,990		32,020		30,778		7,738
Crew/utility		---			425		1,193		3,106		332
Total	$	18,106			22,575		88,691		89,609		20,443
Worldwide fleet:
Deepwater vessels	$	95,909			97,445		416,330		362,488		108,913
Towing-supply/supply		127,527			132,077		517,132		647,018		130,150
Crew/utility		20,979			19,953		81,628		90,409		20,866
Offshore tugs		8,299			9,181		36,123		37,680		9,704
Other		---			---		---		567		---
Total	$	252,714			258,656		1,051,213		1,138,162		269,633
UTILIZATION:
International-based fleet:
Deepwater vessels		75.2	%		78.5		78.8		78.6		79.6
Towing-supply/supply		54.5			56.7		54.7		66.6		55.1
Crew/utility		85.8			72.3		78.5		72.4		80.6
Offshore tugs		53.7			56.8		56.8		56.8		58.7
Other		---			---		---		79.2		---
Total		63.2	%		62.7		62.8		68.5		63.7
United States-based fleet:
Deepwater vessels		82.9	%		92.0		87.8		86.1		86.0
Towing-supply/supply		54.2			41.8		47.9		37.3		45.9
Crew/utility		---			14.2		23.2		23.8		25.9
Total		57.9	%		46.0		54.2		43.1		52.0
Worldwide fleet:
Deepwater vessels		75.8	%		80.2		79.8		79.6		80.2
Towing-supply/supply		54.5			55.1		54.0		63.3		54.2
Crew/utility		84.3			66.4		75.9		67.7		77.9
Offshore tugs		53.7			56.8		56.8		56.8		58.7
Other		---			---		---		79.2		---
Total		62.8	%		61.0		62.1		65.9		62.7
AVERAGE VESSEL DAY RATES:
International-based fleet:
Deepwater vessels	$	21,294			23,924		22,315		24,470		22,663
Towing-supply/supply		12,090			12,259		11,980		12,340		11,761
Crew/utility		4,850			4,856		4,810		4,926		4,829
Offshore tugs		6,601			6,769		6,520		7,062		6,665
Other		---			---		---		9,679		---
Total	$	12,048			12,411		12,195		12,251		12,230
United States-based fleet:
Deepwater vessels	$	25,163			25,799		25,480		26,511		25,425
Towing-supply/supply		9,936			7,413		8,540		8,860		8,374
Crew/utility		---			4,757		4,759		4,936		4,749
Total	$	14,477			13,936		14,357		14,441		13,806
Worldwide fleet:
Deepwater vessels	$	21,619			24,198		22,691		24,763		22,946
Towing-supply/supply		11,913			11,849		11,689		12,114		11,485
Crew/utility		4,850			4,853		4,810		4,926		4,828
Offshore tugs		6,601			6,769		6,520		7,062		6,665
Other		---			---		---		9,679		---
Total	$	12,194			12,531		12,352		12,399		12,337

7

The average day rates and utilization percentages for the company’s new vessels (defined as vessels acquired or constructed since calendar year 2000 as part of its new build and acquisition program) and its older, more traditional vessels for the quarters and the years ended March 31, 2011 and 2010 and for the quarter ended December 31, 2010, were as follows:

		Quarter Ended     March 31,						Year Ended     March 31,				Quarter Ended December 31,
		2011			2010			2011		2010		2010
AVERAGE VESSEL DAY RATES:
International-based fleet:
New vessels	$		13,608			15,441			14,090		15,946		14,100
Traditional vessels			7,561			7,402			7,568		8,120		7,285
Total International-based fleet	$		12,048			12,411			12,195		12,251		12,230
United States-based fleet:
New vessels	$		23,603			20,689			21,432		20,122		20,490
Traditional vessels			10,788			9,666			10,138		10,633		10,196
Total U.S.-based fleet	$		14,477			13,936			14,357		14,441		13,806
Worldwide fleet:
New vessels	$		13,851			15,705			14,381		16,165		14,317
Traditional vessels			8,047			7,678			7,939		8,332		7,712
Total Worldwide Fleet	$		12,194			12,531			12,352		12,399		12,337
UTILIZATION:
International-based fleet:
New vessels			85.8	%		85.1			86.4		86.2		87.5
Traditional vessels			36.0			43.7			37.7		55.7		37.0
Total International-based fleet			63.2	%		62.7			62.8		68.5		63.7
United States-based fleet:
New vessels			80.2	%		57.6			72.9		56.7		69.8
Traditional vessels			52.1			40.8			47.1		37.1		45.7
Total U.S.-based fleet			57.9	%		46.0	��		54.2		43.1		52.0
Worldwide fleet:
New vessels			85.6	%		83.1			85.8		83.9		86.8
Traditional vessels			37.7			43.3			38.8		53.5		38.1
Total Worldwide Fleet			62.8	%		61.0			62.1		65.9		62.7

8

The company’s actual vessel count at March 31, 2011 and the average number of vessels by class and geographic distribution for the quarters and the years ended March 31, 2011 and 2010 and for the quarter ended December 31, 2010, were as follows:

	Actual Vessel         Count at         March 31,	Quarter Ended                 March 31,				Year Ended                 March 31,				Quarter Ended December 31,
	2011	2011		2010		2011		2010		2010
International-based fleet:
Deepwater vessels	60		60		49		56		44		59
Towing-supply/supply	199		200		199		203		206		205
Crew/utility	56		56		62		58		67		57
Offshore tugs	26		26		27		27		26		27
Total	341		342		337		344		343		348
United States-based fleet:
Deepwater vessels	5		5		7		7		6		6
Towing-supply/supply	18		18		25		21		26		22
Crew/utility	---		1		7		3		7		3
Total	23		24		39		31		39		31
Owned or chartered vessels included in marine revenues (B)	364		366		376		375		382		379
Vessels withdrawn from service	4		5		7		5		8		5
Joint-venture and other	10		10		10		10		10		10
Total	378		381		393		390		400		394

Note (B): Included in total owned or chartered vessels at March 31, 2011 and 2010 and at December 31, 2010, were 90, 83, and 92 vessels, respectively, that were stacked by the company. These vessels were considered to be in service and are included in the calculation of the company’s utilization statistics.

The company’s vessel commitments by vessel class and type as of March 31, 2011, were as follows:

	International Built						U.S. Built
Vessel class and type	Number         of         Vessels		Total Cost		Expended         Through         03/31/11		Number     of     Vessels		Total Cost		Expended     Through     03/31/11
			(In thousands)						(In thousands)
Deepwater vessels:
Anchor handling towing supply		---		---		---		---		---		---
Platform supply vessels		17	$	482,203		$190,676		3	$	135,972		$46,678
Towing-supply/supply vessels:
Anchor handling towing supply		15	$	229,036		$117,963		---		---		---
Platform supply vessels		---		---		---		---		---		---
Crewboats		1		$9,992		$7,708		---		---		---
Totals		33	$	721,231		$316,347		3	$	135,972		$46,678

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The table below summarizes by vessel class and vessel type the number of vessels expected to be delivered by quarter along with the expected cash outlay (in thousands) of the various vessel commitments as discussed above:

	Quarter Period Ended
Vessel class and type		06/11	09/11	12/11	03/12	06/12	Thereafter
Deepwater vessels:
Anchor handling towing supply		---	---	---	---	---	---
Platform supply vessels		2	2	4	1	3	8
Towing-supply/supply vessels:
Anchor handling towing supply		2	4	7	2	---	---
Platform supply vessels		---	---	---	---	---	---
Crewboats		---	---	---	1	---	---
Totals		4	6	11	4	3	8
(In thousands)
Expected quarterly cash outlay		$  95,900	76,737	140,848	55,000	46,501	79,192 (C)

(C) The $79,192 of ‘Thereafter’ vessel construction obligations is expected to be paid out as follows: $63,354 in the remaining quarters of fiscal 2013 and $15,838 during fiscal 2014.

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