- Backlog: Contracted backlog was $260 million as of March 31, 2012, of which 82% is expected to be performed in 2012. This compares to backlog of $178 million at December 31, 2011 and $190 million at March 31, 2011.
- Revenues: First quarter 2012 revenues decreased by $35.4 million to $60.0 million as compared to first quarter 2011. The decrease is primarily due to the reduced activity levels in the U.S. Gulf of Mexico due to three of the Company’s most profitable assets being in drydock for the majority of the first quarter 2012, and higher activity in the first quarter 2011 from a large construction project in the Bahamas that did not re-occur in the first quarter 2012.
- Gross Loss: First quarter 2012 gross loss increased by $9.2 million to $16.4 million as compared to first quarter 2011. The increase in the loss is primarily due to the same reasons as the revenue decrease discussed above partially offset by lower costs.
- SG&A: First quarter 2012 SG&A decreased by $2.5 million to $13.5 million as compared to first quarter 2011. The decrease is primarily due to various cost reduction measures implemented by the Company in response to the current level of business activity. As a percentage of revenue, SG&A was 22.5% for the first quarter 2012 compared to 16.7% for the first quarter 2011. The increase in percentage is due to the revenue decrease in first quarter 2012 described above.
- Net Interest Expense: First quarter 2012 net interest expense increased by $0.3 million to $2.3 million as compared to first quarter 2011, primarily due to higher interest rate margins under the Company’s credit facility.
- Income Tax: The effective tax benefit rate for the first quarter 2012 was 25.1% compared to 16.8% for the first quarter 2011. The increase in the tax benefit rate was primarily due to a non-cash valuation allowance established during the first quarter 2011 relating to certain foreign losses and a higher percentage of the pre-tax losses generated in tax jurisdictions with lower rates during the first quarter of 2011.
- Balance Sheet: Debt consisted of $150.0 million under a term loan and $20.0 million outstanding under a revolving credit facility, and cash and cash equivalents were $9.2 million, for a net debt position of $160.8 million as of March 31, 2012, compared to net debt positions of $134.4 million at December 31, 2011 and $155.4 million at March 31, 2011.
CAUTIONARY STATEMENTThis press release may include “forward-looking” statements that are generally identifiable through the use of words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project” and similar expressions and include any statements that are made regarding earnings expectations. The forward-looking statements speak only as of the date of this release, and we undertake no obligation to update or revise such statements to reflect new information or events as they occur. Actual future results may differ materially due to a variety of factors, including current economic and financial market conditions, changes in commodity prices for natural gas and oil and in the level of offshore exploration, development and production activity in the oil and natural gas industry, the impact on the market and regulatory environment in the U.S. Gulf of Mexico resulting from the Macondo well blowout, the inability to obtain contracts with favorable pricing terms if there is a downturn in our business cycle, intense competition in our industry, the operational risks inherent in our business, and other risks detailed in our most recently filed Annual Report on Form 10-K.
|CAL DIVE INTERNATIONAL, INC. and SUBSIDIARIES|
|Condensed Consolidated Statements of Operations|
|(in thousands, except per share amounts)|
|Three Months Ended|
|Cost of sales||76,437||102,657|
|Selling and administrative expenses||13,492||15,953|
|(Gain) loss on sale of assets||189||(2,832||)|
|Loss from operations||(31,452||)||(20,347||)|
|Interest expense, net||2,300||2,027|
|Other (income) expense, net||(341||)||148|
|Loss before income taxes||(33,411||)||(22,522||)|
|Income tax benefit||(8,389||)||(3,777||)|
|Loss attributable to noncontrolling interest||(717||)||-|
|Loss attributable to Cal Dive||$||(24,305||)||$||(18,745||)|
|Loss per share attributable to Cal Dive:|
|Basic and diluted||$||(0.26||)||$||(0.20||)|
|Weighted average shares outstanding:|
|Basic and diluted||92,677||91,652|
|Other financial data:|
|Depreciation and amortization||14,636||16,876|
|Non-cash stock compensation expense||2,378||2,281|
|CAL DIVE INTERNATIONAL, INC. and SUBSIDIARIES|
|Condensed Consolidated Balance Sheets|
|March 31,||December 31,|
|Cash and cash equivalents||$||9,243||$||15,598|
|Accounts receivable, net||82,455||108,420|
|Other current assets||49,269||56,914|
|Total current assets||140,967||180,932|
|Net property and equipment||512,257||496,771|
|Other assets, net||31,598||27,237|
|LIABILITIES AND EQUITY|
|Other current liabilities||29,539||36,775|
|Current maturities of long-term debt||17,900||6,000|
|Total current liabilities||113,326||121,052|
|Other long-term liabilities||112,817||110,247|
|Total liabilities and equity||$||684,822||$||704,940|
|Reconciliation of Non-GAAP Financial Measures|
|For the Three Months Ended March 31, 2012 and 2011|
|In addition to net income, one primary measure that the Company uses to evaluate financial performanceis earnings before net interest expense, taxes, depreciation and amortization, or EBITDA. The Company usesEBITDA to measure operational strengths and the performance of its business and not to measure liquidity.EBITDA does not reflect the periodic costs of certain capitalized tangible and intangible assets used ingenerating revenues, and should be considered in addition to, and not as a substitute for, net income and othermeasures of financial performance reported in accordance with GAAP. Furthermore, EBITDA presentationsmay vary among companies; thus, the Company's EBITDA may not be comparable to similarly titled measuresof other companies.|
|The Company believes EBITDA is useful as a measurement tool because it helps investors evaluateand compare operating performance from period to period by removing the impact of capital structure (primarilyinterest charges from outstanding debt) and asset base (primarily depreciation and amortization of vessels) fromoperating results. The Company's management uses EBITDA in communications with lenders, rating agenciesand others, concerning financial performance.|
|The following table presents a reconciliation of EBITDA to income (loss) attributable to Cal Dive, which isthe most directly comparable GAAP financial measure of the Company's operating results:|
|Three Months Ended|
|Less: Depreciation & Amortization||14,636||16,876|
|Less: Income Tax Expense (Benefit)||(8,389||)||(3,777||)|
|Less: Net Interest Expense||2,300||2,027|
|Less: Non-Cash Stock Compensation Expense||2,378||2,281|
|Less: Non-Cash Impairment Charge||1,351||-|
|Loss Attributable to Cal Dive||$||(24,305||)||$||(18,745||)|