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TheStreet Open House

Cal Dive Reports Third Quarter 2013 Results

Conference Call Information

Further details will be provided during Cal Dive’s conference call, scheduled for 9:00 a.m. Central Time tomorrow, November 7, 2013. The teleconference dial-in numbers are: (866) 515-2915 (domestic), (617) 399-5129 (international), passcode 19307329. Investors will be able to obtain the slide presentation and listen to the live conference call broadcast from the Investor Relations page at www.caldive.com.

A replay of the call will also be available from the Investor Relations-Audio Archives page. A telephonic replay of the conference call will be available beginning approximately three hours after the completion of the conference call and will remain available for one week. To access the replay, call (888) 286-8010 (domestic) or (617) 801-6888 (international), passcode 24130529.

About Cal Dive International, Inc.

Cal Dive International, Inc., headquartered in Houston, Texas, is a marine contractor that provides manned diving, pipelay and pipe burial, platform installation and salvage, and light well intervention services to the offshore oil and natural gas industry on the Gulf of Mexico OCS, Northeastern U.S., Latin America, Southeast Asia, China, Australia, West Africa, the Middle East, and Europe, with a diversified fleet of surface and saturation dive support vessels and construction barges.

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. These statements are based on a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Investors are cautioned that any such statements are not guarantees of future performance and that actual future results may differ materially due to a variety of factors, including intense competition and pricing pressure in the Company’s industry, the risks of cost overruns on fixed price contracts, the uncertainties inherent in competitive bidding for work, the operational risks inherent in the Company’s business, risks associated with the Company’s increasing presence internationally, 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 Nine Months Ended
September 30, September 30,

 

2013 2012 2013 2012
(unaudited) (unaudited)
 
Revenues $ 155,246 $ 138,113 $ 357,151 $ 318,451
Cost of sales   144,800     134,212     355,592     330,817  
Gross profit (loss) 10,446 3,901 1,559 (12,366 )
General and administrative expenses 11,140 13,570 33,851 39,908
Asset impairment 20,041 21,181 20,166 22,532
(Gain) on sale of assets, net   (314 )   (12 )   (3,437 )   (3,345 )
Operating loss (20,421 ) (30,838 ) (49,021 ) (71,461 )
Interest expense, net 5,677 4,535 14,939 10,143
Interest expense - adjustment to conversion
feature of convertible debt - (8,357 ) (6,362 ) (8,357 )
Other (income) expense, net   337     (266 )   792     (463 )
Loss before income taxes (26,435 ) (26,750 ) (58,390 ) (72,784 )
Income tax benefit   (10,643 )   (10,665 )   (21,334 )   (23,905 )
Net loss (15,792 ) (16,085 ) (37,056 ) (48,879 )
Income (loss) attributable to noncontrolling interest   1,008     (152 )   (938 )   (2,942 )
Loss attributable to Cal Dive $ (16,800 ) $ (15,933 ) $ (36,118 ) $ (45,937 )
 
Loss per share attributable to Cal Dive:
Basic and diluted $ (0.18 ) $ (0.17 ) $ (0.39 ) $ (0.50 )
 
Weighted average shares outstanding:
Basic and diluted   93,793     92,688     93,775     92,710  
 
Other financial data:
Depreciation and amortization $ 13,710 $ 15,994 $ 41,521 $ 46,544
Non-cash stock compensation expense 1,457 2,107 4,311 6,485
EBITDA 13,442 11,016 17,123 9,734
 
               
CAL DIVE INTERNATIONAL, INC. and SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands)
 
 
September 30, December 31,
2013 2012
ASSETS (unaudited)
 
Current assets:
Cash $ 6,106 $ 8,343
Accounts receivable, net 163,163 135,205
Other current assets   41,219   36,361
Total current assets   210,488   179,909
 
Net property and equipment 395,377 423,536
 
Other assets, net   34,196   27,228
Total assets $ 640,061 $ 630,673
 
 
LIABILITIES AND EQUITY
 
Current liabilities:
Accounts payable $ 100,465 $ 73,480
Other current liabilities 37,955 37,995
Current maturities of long-term debt   13,989   4,219
Total current liabilities   152,409   115,694
 
Long-term debt 173,827 133,116
Derivative liability for conversion feature of convertible debt - 22,456
Other long-term liabilities   68,647   91,132
Total liabilities   394,883   362,398
 
Total equity 245,178 268,275
   
Total liabilities and equity $ 640,061 $ 630,673
 
                       
Reconciliation of Non-GAAP Financial Measures
For the Periods Ended September 30, 2013 and 2012
(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 includes other non-cash items and adjustments in its definition of EBITDA outlined below. 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 Nine Months Ended
September 30, September 30,
2013 2012 2013 2012
EBITDA (unaudited) $ 13,442 $ 11,016 $ 17,123 $ 9,734
 
Less: Depreciation & amortization 13,710 15,994 41,521 46,544
Less: Income tax benefit (10,643 ) (10,665 ) (21,334 ) (23,905 )
Less: Net interest expense 5,677 4,535 14,939 10,143
Less: Interest expense - conversion feature adjustment - (8,357 ) (6,362 ) (8,357 )
Less: Non-cash stock compensation expense 1,457 2,107 4,311 6,485
Less: Severance charges - 2,154 - 2,229
Less: Non-cash impairment charges   20,041     21,181     20,166     22,532  
Loss attributable to Cal Dive $ (16,800 ) $ (15,933 ) $ (36,118 ) $ (45,937 )
 
 
 
As of 9/30/13
Total Debt (1) $ 207,606
Less: Cash   (6,106 )
Net Debt $ 201,500  
 
 
(1) Total debt consists of outstanding balances on a revolver, secured term loan, unsecured term loan and the principal amount of convertible debt.
 




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