November 7, 2016 - 5:44 PM EST
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Tidewater Reports Second Quarter Results For Fiscal 2017

NEW ORLEANS, Nov. 7, 2016 /PRNewswire/ -- Tidewater Inc. (NYSE:TDW) announced today a second quarter net loss for the period ended September 30, 2016, of $178.5 million, or $3.79 per common share, on revenues of $143.7 million. For the same quarter last year, net loss was $43.8 million, or $0.93 per common share, on revenues of $271.9 million. The immediately preceding quarter ended June 30, 2016, had a net loss of $89.1 million, or $1.89 per common share, on revenues of $167.9 million.

Included in the net loss for the quarter ended September 30, 2016 were the following:

  • $129.6 million ($129.6 million after-tax, or $2.75 per share) in non-cash asset impairment charges that resulted from impairment reviews undertaken during the September 2016 quarter.
  • $2.5 million ($2.2 million after-tax, or $0.05 per share) of foreign exchange losses resulting primarily from the strengthening of the Norwegian kroner on liabilities relative to the U.S. dollar.
  • $0.6 million ($0.6 million after-tax, or $0.01 per share) of foreign exchange gains which is included in Equity in net earnings (losses) of unconsolidated companies and related to our Angola joint venture, Sonatide.

Included in the net loss for the prior fiscal year's quarter ended September 30, 2015 were the following:

  • $31.7 million ($31.6 million after-tax, or $0.67 per share) in non-cash asset impairment charges that resulted from impairment reviews undertaken during the September 2015 quarter.
  • A $7.6 million ($6.3 million after-tax, or $0.13 per share) restructuring charge related to severance and other termination costs resulting from right-sizing efforts during the September 2015 quarter.
  • $5.2 million ($5.2 million after-tax, or $0.11 per share) of foreign exchange losses which is included in Equity in net earnings (losses) of unconsolidated companies and related to our Angola joint venture, Sonatide.

Included in the net loss for the preceding quarter ended June 30, 2016 were the following:

  • $36.9 million ($36.1 million after-tax, or $0.77 per share) in non-cash asset impairment charges that resulted from impairment reviews undertaken during the June 2016 quarter.
  • $2.7 million ($2.6 million after-tax, or $0.06 per share) of foreign exchange losses, most notably the devaluation of the Nigerian naira relative to the U.S. dollar.
  • $1.1 million ($1.1 million after-tax, or $0.02 per share) of foreign exchange losses which is included in Equity in net earnings (losses) of unconsolidated companies and related to our Angola joint venture, Sonatide.

Income tax expense largely reflects tax liabilities in certain jurisdictions that levy taxes on bases other than pre-tax profitability (so called "deemed profit" regimes.)

Status of Discussions with Lenders and Noteholders

Please refer to Note (6) of Notes to Consolidated Financial Statements included in Item 1 of this Quarterly Report on Form 10-Q and Note (5) of Notes to Consolidated Financial Statements included in Item 8 of the company's Annual Report on Form 10-K for the year ended March 31, 2016 for additional information regarding the company's outstanding debt.

The decrease in oil and gas prices that began in the second half of fiscal 2015 and continued throughout fiscal 2016 has led to materially lower levels of spending for offshore exploration and development by the company's customers globally. In addition, newly constructed vessels have been delivered over the last several years, exacerbating weak vessel utilization. With reduced demand for offshore support vessels along with a higher number of newer generation vessels, the company has experienced a significant decline in the utilization of its vessels, average day rates received and vessel revenue. The company has implemented a number of significant cost reduction measures to mitigate the effects of significantly lower vessel revenue and, given the currently challenging offshore support vessel market and business outlook, continues its efforts to reduce its operating costs and preserve its liquidity.

At June 30, 2016 and September 30, 2016, the company did not meet the 3.0x minimum interest coverage ratio covenant (the "minimum interest coverage ratio requirement") contained in its Revolving Credit and Term Loan Agreement ("Bank Loan Agreement"), the Troms Offshore Debt and the 2013 Senior Note Agreement (the "2013 Note Agreement"). Failure to meet the minimum interest coverage ratio requirement would have resulted in covenant noncompliance; however, as discussed in more detail below, limited waivers were received. Without these limited waivers, the respective lenders and/or the noteholders would have had the ability to declare the company to be in default of the Bank Loan Agreement, the Troms Offshore Debt and/or the 2013 Note Agreement, as applicable, and accelerate the indebtedness thereunder, the effect of which would be to likewise cause the company's other Senior Notes, which were issued in 2010 and 2011, to be in default.

The company's bank loans and its notes are linked together by cross-default provisions, such that if either the lenders or the noteholders declare the loans or notes to be in default, the other indebtedness likewise will be in default, and all of the debt at that time may be accelerated if the majority of lenders or noteholders under the respective debt agreements elect to accelerate. If the company is not in compliance with covenants set forth in the agreements evidencing these debt obligations, and such non-compliance is not waived, then the holders of a majority of loans may declare the bank loans to be in default, and the holders of a majority in principal amount of any of the three classes of the company's notes may declare that class of notes to be in default. In such event, all of our indebtedness would be accelerated, and the company will not have sufficient liquidity to repay those accelerated amounts. The decision as to whether to accelerate the debt upon the company's non-compliance with the debt covenants lies with the lenders and noteholders.

While the company is continuing to work toward amendments to its various debt arrangements that will be acceptable to all parties, there is a possibility that the lenders, noteholders and the company will not be able to negotiate new debt terms that are acceptable to all parties, in which case the company will likely seek reorganization under Chapter 11 of the federal bankruptcy laws, which could include a restructuring of the company's various debt obligations and could place equity holders at significant risk of losing some or all of their interests in the company.

Given that the company expected it would not meet the minimum interest coverage ratio requirement set forth in the Bank Loan Agreement, the Troms Offshore Debt and the 2013 Note Agreement during fiscal 2017, which could result in the acceleration of the debt under these agreements and the company's other Senior Notes, the report of the company's independent registered public accounting firm that accompanied the company's audited consolidated financial statements for the fiscal year ended March 31, 2016 (the "audit opinion") contained an explanatory paragraph regarding the company's ability to continue as a going concern.  Such going concern explanatory paragraph was required because the company's internal forecast indicated that, within fiscal 2017, the company may no longer be in compliance with the minimum interest coverage ratio requirement.

In addition, the Bank Loan Agreement and the Troms Offshore Debt require that the company receive an unqualified audit opinion from an independent certified public accountant that is not subject to a going concern or similar modification. The inability of the company to obtain an audit opinion without any modification is an independent event of default under these agreements which would allow the lenders to accelerate the indebtedness thereunder, the effect of which would be to likewise cause all of the company's Senior Notes to be in default. The explanatory paragraph in the audit opinion also references the audit opinion-related event of default under various borrowing arrangements as an uncertainty that raises substantial doubt about the company's ability to continue as a going concern. As a result of the company's failure to receive an audit opinion with no modifications from the company's independent certified public accountants, and because the waivers are for a limited period that is less than one year, all of the company's indebtedness has been classified as a current liability in the accompanying consolidated balance sheet since March 31, 2016.

As previously reported, the company obtained limited waivers from the necessary lenders which waived the unqualified audit opinion requirement and/or waived the minimum interest coverage ratio requirement until October 21, 2016.  Prior to the October 21, 2016 expiry of such limited waivers, the company obtained limited waivers from the necessary lenders and noteholders which extend the waiver of the unqualified audit opinion requirement and/or waive the minimum interest coverage ratio requirement until November 11, 2016.

The company continues to engage in discussions with its principal lenders and noteholders to amend the company's various debt arrangements in advance of the expiration of the waivers on November 11, 2016.  In its October 21, 2016 press release announcing the most recent extension, the company reported that recent industry data, including data regarding projected levels of offshore drilling activity, a primary driver of activity within the offshore service vessel industry, had led the company to conclude that important debt terms will require further negotiation.  Such negotiations, if successfully concluded, would require the company to make certain concessions under the existing agreements, such as providing collateral to secure the Bank Loan Agreement, the Troms Offshore Debt and the Senior Notes, repaying a portion of the indebtedness outstanding under the Bank Loan Agreement, accepting a reduction in total borrowing capacity under the revolving credit facility, paying a higher rate of interest, issuing some form of equity or equity linked compensation enhancement, paying down a portion of the Troms Offshore Debt and/or Senior Notes, or some combination of the above. In addition, such amendments will need to address the audit opinion requirement of the Bank Loan Agreement and the Troms Offshore Debt (the waiver of which has been extended until November 11, 2016). Obtaining the covenant relief will require the company to reach an agreement that satisfies potentially divergent interests of its principal lenders and noteholders.

The company's unaudited condensed consolidated financial statements as of and for the quarter and six months ended September 30, 2016 were prepared assuming the company would continue as a going concern, which contemplates continuity of operations, realization of assets and the satisfaction of liabilities in the normal course of business for the twelve month period following the date of these consolidated financial statements.

Tidewater will hold a conference call to discuss September quarterly earnings on Tuesday, November 8, 2016, at 10:00 a.m. Central time. Investors and interested parties may listen to the teleconference via telephone by calling 1-888-771-4371 if calling from the U.S. or Canada (1-847-585-4405 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 November 8, 2016, and will continue until 11:59 p.m. Central time on November 10, 2016. To hear the replay, call 1-888-843-7419 (1-630-652-3042 if calling from outside the U.S.). The conference call ID number is 43697905.

A simultaneous webcast of the conference call will be available online at the Tidewater Inc. website, (http://www.tdw.com). The online replay will be available until December 8, 2016.

The conference call will contain forward-looking statements in addition to statements of historical fact. The actual achievement of any forecasted results or the unfolding of future economic or business developments in a way anticipated or projected by the Company involve numerous risks and uncertainties that may cause the Company's actual performance to be materially different from that stated or implied in the forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the oilfield service industry and other factors discussed within the "Risk Factors" section of Tidewater's recent Forms 10-Q and 10-K.

Tidewater is the leading provider of Offshore Service Vessels (OSVs) to the global energy industry.

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

Financial information is displayed on the next page.

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)

(Unaudited)

(In thousands, except share and per share data)





Quarter Ended



Six Months Ended




September 30,



September 30,




2016



2015



2016



2015


Revenues:

















Vessel revenues


$

139,361




264,131




301,791




562,444


Other operating revenues



4,361




7,792




9,856




14,253





143,722




271,923




311,647




576,697


Costs and expenses:

















Vessel operating costs



87,094




158,612




195,968




337,893


Costs of other operating revenues



3,423




6,102




7,326




11,846


General and administrative



32,954




37,286




70,001




81,239


Vessel operating leases



8,441




8,441




16,882




16,884


Depreciation and amortization



43,845




45,979




88,397




91,636


Gain on asset dispositions, net



(6,253)




(6,111)




(11,896)




(13,462)


Asset impairments



129,562




31,672




166,448




46,630


Restructuring charge






7,586







7,586





299,066




289,567




533,126




580,252


Operating loss



(155,344)




(17,644)




(221,479)




(3,555)


Other income (expenses):

















Foreign exchange gain (loss)



(2,539)




844




(5,272)




(3,289)


Equity in net earnings (losses) of unconsolidated companies



1,313




(2,919)




1,312




(5,360)


Interest income and other, net



992




355




2,168




1,145


Interest and other debt costs, net



(18,477)




(13,247)




(35,431)




(26,429)





(18,711)




(14,967)




(37,223)




(33,933)


Loss before income taxes



(174,055)




(32,611)




(258,702)




(37,488)


Income tax expense



3,568




11,388




7,564




21,675


Net Loss


$

(177,623)




(43,999)




(266,266)




(59,163)


Less: Net income (loss) attributable to noncontrolling interests



867




(164)




1,321




(276)


Net loss attributable to Tidewater Inc.


$

(178,490)




(43,835)




(267,587)




(58,887)


Basic loss per common share


$

(3.79)




(0.93)




(5.69)




(1.25)


Diluted loss per common share


$

(3.79)




(0.93)




(5.69)




(1.25)


Weighted average common shares outstanding



47,067,864




46,942,950




47,067,790




46,962,242


Dilutive effect of stock options and restricted stock













Adjusted weighted average common shares



47,067,864




46,942,950




47,067,790




46,962,242


 

TIDEWATER INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and par value data)





September 30,



March 31,


ASSETS


2016



2016


Current assets:









Cash and cash equivalents


$

674,923




678,438


Trade and other receivables, net



209,850




228,113


Due from affiliate



300,757




338,595


Marine operating supplies



31,124




33,413


Other current assets



31,874




44,755


Total current assets



1,248,528




1,323,314


Investments in, at equity, and advances to unconsolidated companies



38,200




37,502


Properties and equipment:









Vessels and related equipment



4,486,959




4,666,749


Other properties and equipment



78,459




92,065





4,565,418




4,758,814


Less accumulated depreciation and amortization



1,253,851




1,207,523


Net properties and equipment



3,311,567




3,551,291


Other assets



89,967




71,686


Total assets


$

4,688,262




4,983,793











LIABILITIES AND EQUITY









Current liabilities:









Accounts payable


$

64,231




49,130


Accrued expenses



76,085




91,611


Due to affiliate



175,925




187,971


Accrued property and liability losses



3,602




3,321


Current portion of long-term debt



2,041,367




2,045,516


Other current liabilities



60,345




74,825


Total current liabilities



2,421,555




2,452,374


Deferred income taxes



48,204




34,841


Accrued property and liability losses



11,210




9,478


Other liabilities and deferred credits



164,530




181,546











Commitments and Contingencies


















Equity:









Common stock of $0.10 par value, 125,000,000 shares authorized, issued 47,068,079 shares at September 30, 2016 and 47,067,715 shares at March 31, 2016



4,707




4,707


Additional paid-in capital



169,443




166,604


Retained earnings



1,867,701




2,135,075


Accumulated other comprehensive loss



(6,443)




(6,866)


Total stockholders' equity



2,035,408




2,299,520


Noncontrolling Interests



7,355




6,034


Total equity



2,042,763




2,305,554


Total liabilities and equity


$

4,688,262




4,983,793


 

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)

(In thousands)





Quarter Ended



Six Months Ended




September 30,



September 30,




2016



2015



2016



2015


Net loss


$

(177,623)




(43,999)




(266,266)




(59,163)


Other comprehensive income (loss):

















Unrealized gains (losses) on available for sale securities, net of tax of $0, $0, $0 and $0



119




(627)




280




(679)


Amortization of loss on derivative contract, net of tax of $0, $0, $0 and $0



72




180




143




359


Change in other benefit plan minimum liability, net of tax of $0, $0, $0 and $0












70


Total comprehensive loss


$

(177,432)




(44,446)




(265,843)




(59,413)


 

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)





Six Months Ended




September 30,




2016



2015


Operating activities:









Net loss


$

(266,266)




(59,163)


Adjustments to reconcile net loss to net cash provided by operating activities:









Depreciation and amortization



88,397




91,636


Provision for deferred income taxes






128


Gain on asset dispositions, net



(11,896)




(13,462)


Asset impairments



166,448




46,630


Equity in earnings (losses) of unconsolidated companies, less dividends



(1,659)




6,424


Compensation expense - stock-based



2,628




6,614


Changes in assets and liabilities, net:









Trade and other receivables



18,263




30,891


Changes in due to/from affiliate, net



25,792




53,769


Marine operating supplies



2,289




11,370


Other current assets



(1,827)




(3,681)


Accounts payable



9,671




5,228


Accrued expenses



(16,386)




(13,512)


Accrued property and liability losses



281




(212)


Other current liabilities



(9,716)




(6,011)


Other liabilities and deferred credits



(5,173)




2,594


Other, net



(1,448)




4,648


Net cash provided by (used in) operating activities



(602)




163,891


Cash flows from investing activities:









Proceeds from sales of assets



1,839




6,133


Additions to properties and equipment



(9,509)




(138,990)


Refunds from cancelled vessel construction contracts



11,515




36,190


Net cash provided by (used in) investing activities



3,845




(96,667)


Cash flows from financing activities:









Principal payment on long-term debt



(5,036)




(64,374)


Debt borrowings






31,338


Cash dividends






(23,579)


Other



(1,722)




(961)


Net cash used in financing activities



(6,758)




(57,576)


Net change in cash and cash equivalents



(3,515)




9,648


Cash and cash equivalents at beginning of period



678,438




78,568


Cash and cash equivalents at end of period


$

674,923




88,216


Supplemental disclosure of cash flow information:









Cash paid during the period for:









Interest, net of amounts capitalized


$

34,209




24,894


Income taxes


$

16,790




27,853


Supplemental disclosure of non-cash investing activities:









Additions to properties and equipment


$

10,477




1,471


 

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

(In thousands)
















Accumulated
















Additional







other



Non








Common



paid-in



Retained



comprehensive



controlling








stock



capital



earnings



loss



interest



Total


Balance at March 31, 2016


$

4,707




166,604




2,135,075




(6,866)




6,034




2,305,554


Total comprehensive loss









(267,587)




423




1,321




(265,843)


Stock option activity






577













577


Cancellation of restricted stock awards









213










213


Amortization/cancellation of restricted stock units






2,262













2,262


Balance at September 30, 2016


$

4,707




169,443




1,867,701




(6,443)




7,355




2,042,763



























Balance at March 31, 2015


$

4,703




159,940




2,330,223




(20,378)




6,227




2,480,715


Total comprehensive loss









(58,887)




(250)




(276)




(59,413)


Stock option activity






421













421


Cash dividends declared ($.50 per share)









(23,154)










(23,154)


Amortization of restricted stock units



1




5,186













5,187


Amortization/cancellation of restricted stock awards



(7)




243













236


Balance at September 30, 2015


$

4,697




165,790




2,248,182




(20,628)




5,951




2,403,992


 

The company's vessel revenues and vessel operating costs and the related percentage of total vessel revenues for the quarters and the six-month periods ended September 30, 2016 and 2015 and for the quarter ended June 30, 2016, were as follows:








Quarter




Quarter Ended


Six Months Ended


Ended




September 30,


September 30,


June 30,


(In thousands)


2016


%

2015


%


2016


%

2015


%


2016


%


Vessel revenues:

























Americas


$

53,125


38%


89,210


34%



113,733


38%


203,382


36%



60,608


37%


Asia/Pacific



6,110


4%


32,173


12%



14,031


5%


60,110


11%



7,921


5%


Middle East (A)



23,474


17%


28,684


11%



47,676


15%


60,937


11%



24,202


15%


Africa/Europe (A)



56,652


41%


114,064


43%



126,351


42%


238,015


42%



69,699


43%


Total vessel revenues


$

139,361


100%


264,131


100%



301,791


100%


562,444


100%



162,430


100%


Vessel operating costs:

























Crew costs


$

49,370


35%


84,112


32%



105,258


35%


176,400


31%



55,888


34%


Repair and maintenance



13,440


10%


28,528


11%



29,969


10%


65,782


12%



16,529


10%


Insurance and loss reserves



2,637


2%


2,751


1%



9,633


3%


8,126


2%



6,996


4%


Fuel, lube and supplies



10,176


7%


17,147


6%



20,948


7%


35,257


6%



10,772


7%


Other



11,471


8%


26,074


10%



30,160


10%


52,328


9%



18,689


12%


Total vessel operating costs



87,094


62%


158,612


60%



195,968


65%


337,893


60%



108,874


67%


Vessel operating margin (B)


$

52,267


38%


105,519


40%



105,823


35%


224,551


40%



53,556


33%


 

Note (A): At the beginning of fiscal 2017 the company's operations in the Mediterranean Sea (based in Egypt) were transitioned from the company's previously disclosed Middle East/North Africa operations and included with the company's previously disclosed Sub-Saharan Africa/Europe operations as a result of management realignments. As such, the company now discloses these new segments as Middle East and Africa/Europe, respectively. The company's Americas and Asia/Pacific segments are not affected by this change. The new segment alignment is consistent with how the company's chief operating decision maker reviews operating results for the purpose of allocating resources and assessing performance. Fiscal 2016 amounts have been recast to conform to the new segment alignment.

Note (B): The following table reconciles vessel operating margin as presented above to operating profit (loss) for the quarters and six-month periods ended September 30, 2016 and 2015 and for the quarter ended June 30, 2016:









Quarter




Quarter Ended



Six Months Ended



Ended




September 30,



September 30,



June 30,


(In thousands)


2016



2015



2016



2015



2016


Vessel operating margin


$

52,267




105,519




105,823




224,551




53,556


General and administrative expenses - vessel operations



(22,337)




(28,508)




(48,253)




(61,308)




(25,916)


Vessel operating leases



(8,441)




(8,441)




(16,882)




(16,884)




(8,441)


Depreciation and amortization - vessel operations



(41,909)




(42,828)




(84,350)




(85,577)




(42,441)


Vessel operating profit (loss)


$

(20,420)




25,742




(43,662)




60,782




(23,242)


 

The company's other operating loss for the quarters and six-month periods ended September 30, 2016 and 2015 and for the quarter ended June 30, 2016, consists of the following:









Quarter




Quarter Ended



Six Months Ended



Ended




September 30,



September 30,



June 30,


(In thousands)


2016



2015



2016



2015



2016


Other operating revenues


$

4,361




7,792




9,856




14,253




5,495


Costs of other marine revenues



(3,423)




(6,102)




(7,326)




(11,846)




(3,903)


General and administrative expenses - other operating activities



(611)




(846)




(1,249)




(1,985)




(638)


Depreciation and amortization - other operating activities



(1,339)




(1,502)




(2,720)




(2,916)




(1,381)


Other operating loss


$

(1,012)




(658)




(1,439)




(2,494)




(427)


 

The company's operating loss and other components of loss before income taxes and the related percentage of total revenues for the quarters and six-month periods ended September 30, 2016 and 2015 and for the quarter ended June 30, 2016, were as follows:
















Quarter




Quarter Ended


Six Months Ended


Ended




September 30,


September 30,


June 30,


(In thousands)


2016

%

2015

%


2016

%

2015

%


2016

%


Vessel operating profit (loss):

























Americas (C)


$

(1,177)


(1%)


8,812


3%



(5,503)


(2%)


32,651


6%



(4,326)


(3%)


Asia/Pacific (C)



(6,096)


(4%)


6,168


2%



(11,670)


(4%)


7,918


1%



(5,574)


(3%)


Middle East



925


1%


244


<1%



892


1%


4,248


1%



(33)


(<1%)


Africa/Europe



(14,072)


(10%)


10,518


4%



(27,381)


(9%)


15,965


3%



(13,309)


(8%)





(20,420)


(14%)


25,742


9%



(43,662)


(14%)


60,782


11%



(23,242)


(14%)


Other operating loss



(1,012)


(1%)


(658)


(<1%)



(1,439)


(<1%)


(2,494)


(1%)



(427)


(<1%)





(21,432)


(15%)


25,084


9%



(45,101)


(14%)


58,288


10%



(23,669)


(14%)



























Corporate general and administrative expenses



(10,006)


(7%)


(7,932)


(3%)



(20,499)


(7%)


(17,946)


(4%)



(10,493)


(6%)


Corporate depreciation



(597)


(<1%)


(1,649)


(<1%)



(1,327)


(<1%)


(3,143)


(<1%)



(730)


(1%)


Corporate expenses



(10,603)


(7%)


(9,581)


(3%)



(21,826)


(7%)


(21,089)


(4%)



(11,223)


(7%)



























Gain on asset dispositions, net



6,253


4%


6,111


2%



11,896


4%


13,462


2%



5,643


3%


Asset impairments



(129,562)


(90%)


(31,672)


(11%)



(166,448)


(54%)


(46,630)


(8%)



(36,886)


(21%)


Restructuring charge





(7,586)


(3%)





(7,586)


(1%)





Operating loss


$

(155,344)


(108%)


(17,644)


(6%)



(221,479)


(71%)


(3,555)


(1%)



(66,135)


(39%)


Foreign exchange gain (loss)



(2,539)


(2%)


844


<1%



(5,272)


(2%)


(3,289)


(1%)



(2,733)


(2%)


Equity in net earnings (losses) of unconsolidated companies



1,313


1%


(2,919)


(1%)



1,312


<1%


(5,360)


(1%)



(1)


(<1%)


Interest income and other, net



992


1%


355


<1%



2,168


1%


1,145


<1%



1,176


1%


Interest and other debt costs, net



(18,477)


(13%)


(13,247)


(5%)



(35,431)


(11%)


(26,429)


(4%)



(16,954)


(10%)


Loss before income taxes


$

(174,055)


(121%)


(32,611)


(12%)



(258,702)


(83%)


(37,488)


(7%)



(84,647)


(50%)


 

Note (C): Six months ended September 30, 2015 figures exclude restructuring charges of $3.6 million and $4.0 million related to our Americas and Asia/Pacific segments, respectively, which were incurred during the quarter ended September 30, 2015.

The company's revenues, day-based vessel utilization percentages and average day rates by vessel class and in total for the quarters and six-month periods ended September 30, 2016 and 2015 and for the quarter ended June 30, 2016, were as follows:



















Quarter




Quarter Ended



Six Months Ended



Ended




September 30,



September 30,



June 30,




2016



2015



2016



2015



2016


REVENUE BY VESSEL CLASS (In thousands):





















Americas fleet:





















Deepwater


$

37,270




61,776




77,657




141,928




40,387


Towing-supply



13,039




24,121




29,918




53,636




16,879


Other



2,816




3,313




6,158




7,818




3,342


Total


$

53,125




89,210




113,733




203,382




60,608


Asia/Pacific fleet:





















Deepwater


$

1,872




23,435




4,462




43,268




2,590


Towing-supply



4,238




8,738




9,569




16,842




5,331


Other
















Total


$

6,110




32,173




14,031




60,110




7,921


Middle East fleet:





















Deepwater


$

6,988




5,750




13,026




12,441




6,038


Towing-supply



16,486




22,934




34,650




48,496




18,164


Other
















Total


$

23,474




28,684




47,676




60,937




24,202


Africa/Europe fleet:





















Deepwater


$

24,305




54,974




57,594




122,635




33,289


Towing-supply



25,934




43,086




53,851




84,911




27,917


Other



6,413




16,004




14,906




30,469




8,493


Total


$

56,652




114,064




126,351




238,015




69,699


Worldwide fleet:





















Deepwater


$

70,435




145,935




152,739




320,272




82,304


Towing-supply



59,697




98,879




127,988




203,885




68,291


Other



9,229




19,317




21,064




38,287




11,835


Total


$

139,361




264,131




301,791




562,444




162,430


UTILIZATION:





















Americas fleet:





















Deepwater



38.1%




65.1




40.0




73.1




41.8


Towing-supply


37.5




56.5




39.7




60.6




41.6


Other


34.1




47.8




41.1




46.4




48.0


Total



37.5%




59.7




40.0




64.7




42.5


Asia/Pacific fleet:





















Deepwater



7.8%




59.9




9.0




52.5




10.2


Towing-supply


44.2




79.7




48.7




76.7




53.3


Other
















Total



27.7%



68.3




30.6



63.3



33.5


Middle East fleet:





















Deepwater



73.4%



57.9



66.9




61.0



58.8


Towing-supply


60.8



76.6



64.2



78.4



67.7


Other
















Total



63.8%



73.4



64.8



75.5



65.9


Africa/Europe fleet:





















Deepwater



44.0%



62.5




49.4




66.0



54.7


Towing-supply


42.7



63.3




44.6



63.8



46.4


Other


42.8



74.4



47.4



72.8



52.1


Total



43.2%



66.6




47.1



67.4




51.0


Worldwide fleet:





















Deepwater



39.8%




63.0




42.1



66.7




44.4


Towing-supply


46.6




67.0



49.1



68.3




51.6


Other


40.3




67.9




45.3




66.0




50.2


Total



42.8%



65.7



45.7



67.2



48.6


 



















Quarter




Quarter Ended



Six Months Ended



Ended




September 30,



September 30,



June 30,




2016



2015



2016



2015



2016


AVERAGE VESSEL DAY RATES:





















Americas fleet:





















Deepwater


$

25,302




26,254




25,395




27,513




25,480


Towing-supply



16,401




16,003




16,688




16,686




16,917


Other



10,246




7,461




9,223




8,176




8,507


Total


$

20,892




20,725




20,610




21,800




20,368


Asia/Pacific fleet:





















Deepwater


$

20,708




34,487




21,460




36,525




22,039


Towing-supply



6,127




7,907




6,379




8,133




6,595


Other
















Total


$

7,811




18,028




8,215




18,464




8,555


Middle East fleet:





















Deepwater


$

11,495




17,993




13,049




18,564




15,468


Towing-supply



10,159




11,225




10,163




11,649




10,167


Other
















Total


$

10,523




12,140




10,817




12,607




11,117


Africa/Europe fleet:





















Deepwater


$

14,416




21,177




15,206




22,875




15,840


Towing-supply



15,339




16,781




15,206




16,422




15,085


Other



4,288




5,609




4,520




5,361




4,713


Total


$

11,627




14,228




11,890




14,679




12,112


Worldwide fleet:





















Deepwater


$

18,260




24,535




18,969




25,882




19,622


Towing-supply



12,436




13,689




12,494




13,946




12,546


Other



5,213




5,858




5,312




5,766




5,392


Total


$

13,364




16,039




13,557




16,723




13,727


 

The company's average number of vessels by class and geographic distribution for the quarters and six-month periods ended September 30, 2016 and 2015 and for the quarter ended June 30, 2016:



















Quarter




Quarter Ended



Six Months Ended



Ended




September 30,



September 30,



June 30,




2016



2015



2016



2015



2016


Americas fleet:





















Deepwater



41




40




41




39




42


Towing-supply



23




29




25




29




26


Other



9




10




9




11




9


Total



73




79




75




79




77


Less stacked vessels



34




14




33




13




30


Active vessels



39




65




42




66




47


Asia/Pacific fleet:





















Deepwater



13




12




13




12




13


Towing-supply



17




15




17




15




17


Other



1




1




1




1




1


Total



31




28




31




28




31


Less stacked vessels



21




7




19




5




17


Active vessels



10




21




12




23




14


Middle East fleet:





















Deepwater



9




6




8




6




7


Towing-supply



29




29




29




29




29


Other
















Total



38




35




37




35




36


Less stacked vessels



5




3




5




2




6


Active vessels



33




32




32




33




30


Africa/Europe fleet:





















Deepwater



42




45




42




44




42


Towing-supply



43




44




43




44




44


Other



38




42




38




43




38


Total



123




131




123




131




124


Less stacked vessel



41




20




38




15




34


Active vessels



82




111




85




116




90


Active owned or chartered vessels



164




229




171




238




181


Stacked vessels



101




44




95




35




87


Total owned or chartered vessels



265




273




266




273




268


Joint-venture and other



8




9




9




9




9


Total



273




282




275




282




277


 

Note (D): Included in total owned or chartered vessels at September 30, 2016 and 2015 and at June 30, 2016, were 115, 51 and 89 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 table below summarizes the various commitments to acquire and construct new vessels, by vessel type, as of September 30, 2016:



Number











Amount



Remaining




of



Shipyard


Delivery


Total



Invested



Balance


(In thousands)


Vessels (E)



Location


Dates


Cost



9/30/16



9/30/16 (E)


Deepwater:





















292-foot PSV



1



International


4/2017













300-foot PSV



2



United States


2/2017, 6/2017













Total Deepwater PSVs



3







$

163,657




115,683




47,974


Total vessel commitments



3







$

163,657




115,683




47,974


 

Note (E): Six additional option vessels and a fast supply boat are not included in the table above. The company has $48 million in unfunded capital commitments associated with the three vessels under construction ($33.7 million, net of $14.3 million of expected refunds from shipyards) at September 30, 2016.

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 remaining shipbuilding commitments as discussed above:



Quarter Period Ended


Vessel class and type


December 2016



March 2017



June 2017


Deepwater PSVs






1




2


(In thousands)

Expected quarterly cash outlay


$

8,066




7,084




32,824


 

Logo - http://photos.prnewswire.com/prnh/20140829/141662

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/tidewater-reports-second-quarter-results-for-fiscal-2017-300358738.html

SOURCE Tidewater Inc.


Source: PR Newswire (November 7, 2016 - 5:44 PM EST)

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