Cal Dive International CEO Discusses Q3 2010 Results – Earnings Call Transcript
This call also includes certain non-GAAP financial measures. For a reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measures, we refer you to our earnings press release and the presentation slides for this call.
Okay. On slide three is our normal agenda. I’ll review the quarter, then Brent will get into the details on our financial results, and then we’ll have Q&A.
Turning to slide four, today we’re reporting third quarter 2010 net income of $19.1 million or $0.21 per share, which excludes a $302.5 million non-cash impairment charge that’s related to goodwill for idle construction barges. Brent will explain those impairment charges in greater detail later in the call.For the third quarter we also generated $50 million in EBITDA. With the relatively slow start to the year, we kicked into high gear in this quarter with overall fleet effective utilization at about 69%. Our financial results for the quarter did not reach last year’s third quarter levels for the following reasons. We had, last year we had three large new construction projects in China and Mexico and the northeast U.S. that went well, were completed and did not recur this year. This year we also had reduced day rates in the Gulf of Mexico as we’re coming out of two soft quarters at the beginning of this year. We also had one DP DSV in the Gulf that was down due to mechanical downtime and then overseas, we had reduced activity levels due to market conditions. These items were partially offset by the increased offshore activity levels from the BP well blow out in the Gulf of Mexico where we had three barges and two utility vessels plus a significant number of third party assets on day rate charter. All of these assets were focused on spill response efforts.
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