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Cal Dive Reports Second Quarter 2012 Results

CAUTIONARY STATEMENT

This press release may include “forward-looking” statements that are generally identifiable through the use of words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project” and similar expressions and include any statements that are made regarding earnings expectations. The forward-looking statements speak only as of the date of this release, and the Company undertakes no obligation to update or revise such statements to reflect new information or events as they occur. Actual future results may differ materially due to a variety of factors, including current economic and financial market conditions, changes in commodity prices for oil and natural gas and in the level of offshore exploration, development and production activity in the oil and natural gas industry, the impact on the market and regulatory environment in the U.S. Gulf of Mexico resulting from the Macondo well blowout, the inability to obtain contracts with favorable pricing terms if there is a downturn in the Company’s business cycle, intense competition in the Company’s industry, the operational risks inherent in the Company’s business, and other risks detailed in the Company’s most recently filed Annual Report on Form 10-K.

CAL DIVE INTERNATIONAL, INC. and SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
                                                         
 
 
Three Months Ended Six Months Ended
June 30, June 30,
2012 2011 2012 2011
(unaudited) (unaudited)
 
Revenues $ 120,321 $ 124,040 $ 180,338 $ 219,471
Cost of sales   120,168     122,386     196,605     225,043  
Gross profit (loss ) 153 1,654 (16,267 ) (5,572 )
Selling and administrative expenses 12,846 16,883 26,338 32,836
Asset impairment - - 1,351 -
(Gain) on sale of assets and other (3,522 ) (487 ) (3,333 ) (3,319 )
(Recovery of) doubtful accounts   -     (2,240 )   -     (2,240 )
Operating loss (9,171 ) (12,502 ) (40,623 ) (32,849 )
Interest expense, net 3,308 2,314 5,608 4,341
Other (income) expense, net   144     14     (197 )   162  
Loss before income taxes (12,623 ) (14,830 ) (46,034 ) (37,352 )
Income tax benefit   (4,851 )   (9,816 )   (13,240 )   (13,593 )
Net loss (7,772 ) (5,014 ) (32,794 ) (23,759 )
Loss attributable to noncontrolling interest   (2,073 )   -     (2,790 )   -  
Loss attributable to Cal Dive $ (5,699 ) $ (5,014 ) $ (30,004 ) $ (23,759 )
 
Loss per share attributable to Cal Dive:
Basic and diluted $ (0.06 ) $ (0.05 ) $ (0.32 ) $ (0.26 )
 
Weighted average shares outstanding:
Basic and diluted   92,678     91,659     92,699     91,674  
 
Other financial data:
Depreciation and amortization $ 15,914 $ 17,476 $ 30,550 $ 34,352
Non-cash stock compensation expense 2,000 2,318 4,378 4,598
EBITDA 10,672 7,278 (1,357 ) 5,939
 
                                 
CAL DIVE INTERNATIONAL, INC. and SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
 
 
June 30, December 31,
2012 2011
(unaudited)
ASSETS
 
Current assets:
Cash and cash equivalents $ 10,066 $ 15,598
Accounts receivable, net 116,020 108,420
Other current assets   23,060   56,914
Total current assets   149,146   180,932
 
Net property and equipment 501,591 496,771
 
Other assets, net 29,467 27,237
   
Total assets $ 680,204 $ 704,940
 
 
LIABILITIES AND EQUITY
 
Current liabilities:
Accounts payable $ 86,847 $ 78,277
Other current liabilities 26,911 36,775
Current maturities of long-term debt   8,913   6,000
Total current liabilities   122,671   121,052
 
Long-term debt 149,919 144,000
Other long-term liabilities   107,045   110,247
Total liabilities   379,635   375,299
 
Total equity 300,569 329,641
   
Total liabilities and equity $ 680,204 $ 704,940
 
 
Reconciliation of Non-GAAP Financial Measures
For the Periods Ended June 30, 2012 and 2011
(in thousands)
 
In addition to net income, one primary measure that the Company uses to evaluate financial performance is
earnings before net interest expense, taxes, depreciation and amortization, or EBITDA. The Company uses EBITDA
to measure operational strengths and the performance of its business and not to measure liquidity. EBITDA does
not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating
revenues, and should be considered in addition to, and not as a substitute for, net income and other measures of
financial performance reported in accordance with GAAP. Furthermore, EBITDA presentations may vary among
companies; thus, the Company's EBITDA may not be comparable to similarly titled measures of other companies.
 
The Company believes EBITDA is useful as a measurement tool because it helps investors evaluate and compare
operating performance from period to period by removing the impact of capital structure (primarily interest
charges from outstanding debt) and asset base (primarily depreciation and amortization of vessels) from
operating results. The Company's management uses EBITDA in communications with lenders, rating agencies and
others, concerning financial performance.
 
The following table presents a reconciliation of EBITDA to income (loss) attributable to Cal Dive, which is the
most directly comparable GAAP financial measure of the Company's operating results:
 
                         
Three Months Ended Six Months Ended
June 30, June 30,
2012           2011 2012           2011
(unaudited) (unaudited)
EBITDA $ 10,672 $ 7,278 $ (1,357 ) $ 5,939
Less: Depreciation & Amortization 15,914 17,476 30,550 34,352
Less: Income Tax Expense (Benefit) (4,851 ) (9,816 ) (13,240 ) (13,593 )
Less: Net Interest Expense 3,308 2,314 5,608 4,341
Less: Non-Cash Stock Compensation Expense 2,000 2,318 4,378 4,598
Less: Non-Cash Impairment Charge   -     -     1,351     -  
Loss Attributable to Cal Dive $ (5,699 ) $ (5,014 ) $ (30,004 ) $ (23,759 )
 
 
 
As of 6/30/12
Total Debt $ 158,832
Less: Cash   (10,066 )
Net Debt $ 148,766  
 




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