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Helix Reports Second Quarter 2013 Results

Forward-Looking Statements

This press release contains 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 "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, any statements regarding our strategy, any statements regarding future utilization, any projections of financial items; future operations expenditures; any statements of the plans, strategies and objectives of management for future operations; any statement concerning developments; 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 forward-looking statements are subject to a number of known and unknown risks, uncertainties and other factors including but not limited to the performance of contracts by suppliers, customers and partners; actions by governmental and regulatory authorities; operating hazards and delays; our ultimate ability to realize current backlog; employee management issues; complexities of global political and economic developments; geologic risks; volatility of oil and gas prices and other risks described from time to time in our reports filed with the Securities and Exchange Commission ("SEC"), including the Company's most recently filed Annual Report on Form 10-K and in the Company’s other filings with the SEC, which are available free of charge on the SEC’s website at www.sec.gov. We assume no obligation and do not intend to update these forward-looking statements except as required by the securities laws.

                 
HELIX ENERGY SOLUTIONS GROUP, INC.
 
Comparative Condensed Consolidated Statements of Operations
 
Three Months Ended Jun. 30, Six Months Ended Jun. 30,
(in thousands, except per share data) 2013 2012 2013 2012
(unaudited) (unaudited)
 
 
Revenues $ 232,178 $ 197,461 $ 429,607 $ 427,303
Cost of sales   164,681     169,023     309,543     326,382  
Gross profit 67,497 28,438 120,064 100,921
Loss on settlement commodity derivative contracts - - (14,113 ) -
Loss on sale of assets (1,085 ) - (1,085 ) -
Selling, general and administrative expenses   (19,215 )   (21,569 )   (42,431 )   (43,984 )
Income from operations 47,197 6,869 62,435 56,937
Equity in earnings of investments 683 5,748 1,293 6,155
Other income - oil and gas 1,282 - 4,100 -
Net interest expense and other   (12,556 )   (13,356 )   (29,445 )   (44,890 )
Income (loss) before income taxes 36,606 (739 ) 38,383 18,202
Income tax provision (benefit)   8,577     (3,953 )   9,020     (2,675 )
Income from continuing operations 28,029 3,214 29,363 20,877
Discontinued operations, net of tax   (29 )   42,216     1,029     91,069  
Net income, including noncontrolling interests 28,000 45,430 30,392 111,946
Less net income applicable to noncontrolling interests   (789 )   (789 )   (1,566 )   (1,578 )
Net income applicable to Helix $ 27,211   $ 44,641   $ 28,826   $ 110,368  
 
Weighted Avg. Common Shares Outstanding:
Basic   105,046     104,563     105,039     104,547  
Diluted   105,133     105,042     105,141     105,012  
 
Basic earnings per share of common stock:
Continuing operations $ 0.26 $ 0.02 $ 0.26 $ 0.18
Discontinued operations   -     0.40     0.01     0.87  
Net income per share of common stock $ 0.26   $ 0.42   $ 0.27   $ 1.05  
 
Diluted earnings per share of common stock:
Continuing operations $ 0.26 $ 0.02 $ 0.26 $ 0.18
Discontinued operations   -     0.40     0.01     0.87  
Net income per share of common stock $ 0.26   $ 0.42   $ 0.27   $ 1.05  
 
 
Comparative Condensed Consolidated Balance Sheets
 
ASSETS LIABILITIES & SHAREHOLDERS' EQUITY
(in thousands)   Jun. 30, 2013   Dec. 31, 2012       (in thousands)   Jun. 30, 2013   Dec. 31, 2012
(unaudited) (unaudited)
Current Assets: Current Liabilities:
Cash and equivalents (1) $ 513,527 $ 437,100 Accounts payable $ 91,836 $ 92,398
Accounts receivable 197,014 186,073 Accrued liabilities 100,091 161,514
Other current assets 63,579 96,934 Income tax payable - -
C-A of discontinued operations - 84,000 Current mat of L-T debt (1) 5,247 16,607
                        C-L of discontinued operations     -       182,527  
Total Current Assets 774,120 804,107 Total Current Liabilities 197,174 453,046
 
 
 
Property & Equipment 1,426,367 1,485,875 Long-term debt (1) 543,341 1,002,621
Equity investments 162,839 167,599 Deferred income taxes 288,596 359,237
Goodwill 61,750 62,935 Other long-term liabilities 19,838 5,025
Other assets, net 49,673 49,837 N-C liabilities of discontinued operations - 147,237
N-C assets of discontinued operations     -       816,227       Shareholders' equity (1)     1,425,800       1,419,414  
Total Assets     $ 2,474,749     $ 3,386,580       Total Liabilities & Equity     $ 2,474,749     $ 3,386,580  
 
(1)

Net debt to book capitalization - 2% at June 30, 2013. Calculated as total debt less cash and equivalents ($35,061) divided by sum of total net debt, convertible preferred stock and shareholders' equity ($1,460,861).

 

 
Helix Energy Solutions Group, Inc.
Reconciliation of Non GAAP Measures
Three and Six Months Ended June 30, 2013
 
Earnings Release:
Reconciliation From Net Income from Continuing Operations to Adjusted EBITDAX:
       

Six Months

2Q13

2Q12

1Q13

2013

2012

(in thousands)

 
Net income from continuing operations $ 28,029 $ 3,214 $ 1,334 $ 29,363 $ 20,877
Adjustments:
Income tax provision (benefit) 8,577 (3,953 ) 443 9,020 (2,675 )
Net interest expense and other 12,556 13,356 16,889 29,445 44,890
Depreciation and amortization 25,312 22,739 24,380 49,692 47,388
Asset impairment charges   -       14,590       -       -       14,590  
EBITDA   74,474       49,946       43,046       117,520       125,070  
Adjustments:
Noncontrolling interest (1,026 ) (1,026 ) (1,015 ) (2,041 ) (2,052 )
Loss on commodity derivative contracts - - - - -
Loss on sale of assets   1,085       -       -       1,085       -  
Adjusted EBITDA from continuing operations   74,533       48,920       42,031       116,564       123,018  
 
Adjusted EBITDAX from discontinued operations   -       102,606       31,754       31,754       237,149  
Adjusted EBITDAX $ 74,533     $ 151,526     $ 73,785     $ 148,318     $ 360,167  
 

We calculate adjusted EBITDA from continuing operations as earnings before net interest expense and other, taxes and depreciation and amortization. Adjusted EBITDAX is adjusted EBITDA plus the earnings of our former oil and gas business before net interest expense and other, taxes, depreciation and amortization and exploration expenses. These non-GAAP measures are useful to investors and other internal and external users of our financial statements in evaluating our operating performance because they are widely used by investors in our industry to measure a company's operating performance without regard to items which can vary substantially from company to company and help investors meaningfully compare our results from period to period. Adjusted EBITDA and EBITDAX should not be considered in isolation or as a substitute for, but instead is supplemental to, income from operations, net income or other income data prepared in accordance with GAAP. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to our reported results prepared in accordance with GAAP. Users of this financial information should consider the types of events and transactions which are excluded.

 




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