- Reported positive net income for the first quarterly period since 2017
- Revenue of $191.8 million increased 17% compared to the second quarter of 2022
- Vessel level cash margin of 40.6% compared to 38.2% in the second quarter of 2022
- Adjusted EBITDA of $52.1 million compared to $39.1 million in the second quarter of 2022
- Free cash flow of $21.9 million compared to negative $14.9 million in the second quarter of 2022
- Total fleet utilization of 77.8% compared to 75.5% in the second quarter of 2022
- Active fleet utilization of 83.7% compared to 82.5% in the second quarter of 2022
- Average active vessels of 181 compared to 172 in the second quarter of 2022
HOUSTON--(BUSINESS WIRE)--Tidewater Inc. (NYSE:TDW) announced today revenue for the three and nine months ended September 30, 2022 of $191.8 million and $460.9 million, respectively, compared with $92.4 million and $265.9 million, respectively, for the three and nine months ended September 30, 2021. Tidewater's net income (losses) for the three and nine months ended September 30, 2022, were $5.4 million ($0.10 per common share) and $(32.4) million ($0.76 per common share), respectively, compared with $(26.3) million ($0.64 per common share) and $(91.0) million ($2.22 per common share), respectively, for the three and nine months ended September 30, 2021. Included in the net income for the three months ended September 30, 2022 were merger and severance expenses of $4.3 million and long-lived asset impairment and other of $1.2 million. Included in the net losses for the nine months ended September 30, 2022 were long-lived asset impairment and other of $0.7 million; gain on bargain purchase of $1.3 million; loss on warrants of $14.2 million and merger and severance expenses of $14.0 million. Excluding these items, we would have reported a net income for the three months ended September 30, 2022 of $10.9 million ($0.21 per common share) and net loss for the nine months ended September 30, 2022 of $4.8 million ($0.11 per common share). Included in the net losses for the three and nine months ended September 30, 2021 were long-lived asset impairments, affiliate credit loss credit, and severance expenses of $2.3 and $2.1 million, respectively. Excluding these items, we would have reported a net loss for the three and nine months ended September 30, 2021 of $24.0 million ($0.58 per common share) and $88.9 million ($2.17 per common share), respectively.
Quintin Kneen, Tidewater’s President and Chief Executive Officer, commented, “Our third quarter performance reinforces our previous commentary that the offshore vessel industry had reached an inflection point. Revenue improved by 17% sequentially, partly driven by a full quarter of the Swire Pacific Offshore (SPO) acquisition. Active utilization increased from 82.5% in the second quarter of 2022 to 83.7% and our average day rate, despite a material strengthening of the U.S. dollar, improved by nearly $1,100 per day sequentially, or approximately 8.5%. The combined improvement in utilization and average day rate provided an approximately 11.5% improvement in revenue per average active vessel. Vessel level cash margin improved to nearly 41%, up 240 basis points. It is also worth mentioning that we generated net income during the third quarter, the first quarterly net income since emergence from bankruptcy in 2017, which represents a satisfying milestone in the continued recovery of our business.
“Along with the increase in revenue throughout the first half of this year we also saw an increase in working capital, which is expected during such a period. We are pleased to report that the investment in working capital moderated in the third quarter. In fact, although revenue increased 17% sequentially, our trade accounts receivable balance decreased from the second quarter. The improvement in working capital management combined with our improved profitability provided free cash flow of $21.9 million during the third quarter, representing a sequential improvement in free cash flow of $36.8 million.
“We continue to see day rate momentum across all of our regions, led by Asia Pacific, Europe and Mediterranean and West Africa. Asia Pacific and Europe and Mediterranean regions both benefitted from a strong anchor handling market as favorable conditions and robust drilling activity pushed day rates up to some of the highest levels ever realized in the North Sea. Moving forward, we do expect that the typical industry seasonality will moderate the day rates for the larger anchor handlers over the next two quarters, but the drilling activity driving the demand we saw for these vessels over the past summer will recur in 2023.
“As it pertains to synergies associated with the SPO transaction, we continue to work through our integration plan and have continued to hit internal milestones on our way to realizing our synergy targets. We remain confident that we will realize the $45.0 million of synergies contemplated in the transaction. We expect to realize the full run-rate of general and administrative synergies during the first quarter of 2023 and the full benefit of our operating expense synergy during the latter part of 2023.
“As we look forward to the remainder of 2022 and 2023, we remain confident that the fundamentals for the offshore vessel market will remain robust. The safety of our people and of our operations remains a critical focus for us as this robust activity unfolds, and we remain steadfast in our dedication to being the safest and most reliable offshore support vessel operator in the world.”
In addition to the number of outstanding shares, as of September 30, 2022, the company also has the following in-the-money warrants.
Common shares outstanding |
|
|
46,494,323 |
|
New Creditor Warrants (strike price $0.001 per common share) |
|
|
119,215 |
|
GulfMark Creditor Warrants (strike price $0.01 per common share) |
|
|
185,126 |
|
SPO acquisition warrants (strike price $0.001 per common share) |
|
|
4,003,299 |
|
Total |
|
|
50,801,963 |
|
Tidewater will hold a conference call to discuss results for the three and nine months ending September 30, 2022 on November 4, 2022, at 8:00 a.m. Central Time. Investors and interested parties may listen to the earnings conference call via telephone by calling +1.888.770.7135 if calling from the U.S. or Canada (+1.929.203.0820 if calling from outside the U.S.) and provide Conference ID: 2444624 prior to the scheduled start time. A live webcast of the call will also be available in the Investor Relations section of Tidewater’s website at investor.tdw.com.
A replay of the conference call will be available beginning at 11:00 a.m. Central Time on November 4, 2022 and will continue until 11:59 p.m. Central Time on December 4, 2022. To access the replay, visit the Investor Relations section of Tidewater’s website at investor.tdw.com.
The conference call will contain forward-looking statements in addition to statements of historical fact. The actual achievement of any forecasted results or the unfolding of future economic or business developments in a way anticipated or projected by the company involves numerous risks and uncertainties that may cause the company’s actual performance to be materially different from that stated or implied in the forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the oilfield service industry and other factors discussed within the “Risk Factors” section of Tidewater’s most recent Forms 10-Q and 10-K.
Tidewater owns and operates the largest fleet of offshore support vessels in the industry, with 65 years of experience supporting offshore energy exploration, production and offshore wind activities worldwide. To learn more, visit www.tdw.com.
Financial information is displayed beginning on the next page.
The financial statements and supplementary information presented in this press release were not audited. This press release presents extracts from the Consolidated Balance Sheets at September 30, 2022 and December 31, 2021; the Consolidated Statements of Operations and Consolidated Statements of Equity for the three and nine months ended September 30, 2022 and 2021; and the Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021. Extracts are drawn from the September 30, 2022 unaudited quarterly and year to date financial statements and the December 31, 2021 audited annual financial statements of Tidewater Inc. All per-share amounts are stated on a diluted basis.
In conjunction with the acquisition of Swire Pacific Offshore (SPO), we realigned our reportable segments to better reflect the post-acquisition operating environment. The previous Middle East/Asia Pacific segment has been split into the Middle East segment and the Asia Pacific segment. Our previous operations in Southeast Asia and Australia, along with the legacy SPO operations in the Asia Pacific region, now form the new Asia Pacific segment. Our segment disclosures reflect the current segment alignment for all periods presented.
TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, except per share data) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessel revenues |
|
$ |
190,247 |
|
|
$ |
91,634 |
|
|
$ |
456,298 |
|
|
$ |
261,141 |
|
Other operating revenues |
|
|
1,515 |
|
|
|
767 |
|
|
|
4,640 |
|
|
|
4,717 |
|
Total revenues |
|
|
191,762 |
|
|
|
92,401 |
|
|
|
460,938 |
|
|
|
265,858 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessel operating costs |
|
|
113,037 |
|
|
|
65,344 |
|
|
|
281,805 |
|
|
|
190,627 |
|
Costs of other operating revenues |
|
|
592 |
|
|
|
355 |
|
|
|
1,436 |
|
|
|
2,003 |
|
General and administrative |
|
|
27,267 |
|
|
|
18,045 |
|
|
|
73,288 |
|
|
|
50,875 |
|
Depreciation and amortization |
|
|
30,856 |
|
|
|
27,980 |
|
|
|
89,279 |
|
|
|
86,256 |
|
Long-lived asset impairment and other |
|
|
1,214 |
|
|
|
2,167 |
|
|
|
714 |
|
|
|
2,167 |
|
Affiliate credit loss impairment credit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,000 |
) |
(Gain) loss on asset dispositions, net |
|
|
(264 |
) |
|
|
74 |
|
|
|
826 |
|
|
|
2,954 |
|
Total costs and expenses |
|
|
172,702 |
|
|
|
113,965 |
|
|
|
447,348 |
|
|
|
333,882 |
|
Operating income (loss) |
|
|
19,060 |
|
|
|
(21,564 |
) |
|
|
13,590 |
|
|
|
(68,024 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange loss |
|
|
(3,997 |
) |
|
|
(523 |
) |
|
|
(4,932 |
) |
|
|
(951 |
) |
Equity in net earnings (losses) of unconsolidated companies |
|
|
9 |
|
|
|
100 |
|
|
|
(235 |
) |
|
|
(1,697 |
) |
Interest income and other, net |
|
|
581 |
|
|
|
148 |
|
|
|
4,416 |
|
|
|
179 |
|
Loss on warrants |
|
|
— |
|
|
|
— |
|
|
|
(14,175 |
) |
|
|
— |
|
Interest and other debt costs, net |
|
|
(4,391 |
) |
|
|
(3,681 |
) |
|
|
(12,850 |
) |
|
|
(12,166 |
) |
Total other expense |
|
|
(7,798 |
) |
|
|
(3,956 |
) |
|
|
(27,776 |
) |
|
|
(14,635 |
) |
Income (loss) before income taxes |
|
|
11,262 |
|
|
|
(25,520 |
) |
|
|
(14,186 |
) |
|
|
(82,659 |
) |
Income tax expense |
|
|
6,352 |
|
|
|
887 |
|
|
|
18,189 |
|
|
|
8,922 |
|
Net income (loss) |
|
|
4,910 |
|
|
|
(26,407 |
) |
|
|
(32,375 |
) |
|
|
(91,581 |
) |
Less: Net loss attributable to noncontrolling interests |
|
|
(470 |
) |
|
|
(149 |
) |
|
|
(6 |
) |
|
|
(546 |
) |
Net income (loss) attributable to Tidewater Inc. |
|
$ |
5,380 |
|
|
$ |
(26,258 |
) |
|
$ |
(32,369 |
) |
|
$ |
(91,035 |
) |
Basic income (loss) per common share |
|
$ |
0.12 |
|
|
$ |
(0.64 |
) |
|
$ |
(0.76 |
) |
|
$ |
(2.22 |
) |
Diluted income (loss) per common share |
|
$ |
0.10 |
|
|
$ |
(0.64 |
) |
|
$ |
(0.76 |
) |
|
$ |
(2.22 |
) |
Weighted average common shares outstanding |
|
|
44,451 |
|
|
|
41,132 |
|
|
|
42,570 |
|
|
|
40,918 |
|
Dilutive effect of warrants, restricted stock units and stock options |
|
|
7,069 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted weighted average common shares |
|
|
51,520 |
|
|
|
41,132 |
|
|
|
42,570 |
|
|
|
40,918 |
|
TIDEWATER INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands, except share and par value data) |
||||||||
|
|
September 30, 2022 |
|
|
December 31, 2021 |
|
||
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
115,014 |
|
|
$ |
149,037 |
|
Restricted cash |
|
|
4,965 |
|
|
|
1,240 |
|
Trade and other receivables, less allowance for credit losses of $2,568 and $1,948 at September 30, 2022 and December 31, 2021, respectively |
|
|
181,646 |
|
|
|
86,503 |
|
Due from affiliates, less allowance for credit losses of $11,642 and $72,456 at September 30, 2022 and December 31, 2021, respectively |
|
|
— |
|
|
|
70,134 |
|
Marine operating supplies |
|
|
20,764 |
|
|
|
12,606 |
|
Assets held for sale |
|
|
6,815 |
|
|
|
14,421 |
|
Prepaid expenses and other current assets |
|
|
17,509 |
|
|
|
8,731 |
|
Total current assets |
|
|
346,713 |
|
|
|
342,672 |
|
Net properties and equipment |
|
|
815,990 |
|
|
|
688,040 |
|
Deferred drydocking and survey costs |
|
|
57,877 |
|
|
|
40,734 |
|
Indemnification assets |
|
|
30,117 |
|
|
|
— |
|
Other assets |
|
|
32,364 |
|
|
|
24,334 |
|
Total assets |
|
$ |
1,283,061 |
|
|
$ |
1,095,780 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
31,829 |
|
|
$ |
20,788 |
|
Accrued costs and expenses |
|
|
105,945 |
|
|
|
51,734 |
|
Due to affiliates |
|
|
— |
|
|
|
61,555 |
|
Other current liabilities |
|
|
46,629 |
|
|
|
23,865 |
|
Total current liabilities |
|
|
184,403 |
|
|
|
157,942 |
|
Long-term debt |
|
|
168,649 |
|
|
|
167,885 |
|
Other liabilities and deferred credits |
|
|
82,910 |
|
|
|
68,184 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
Common stock |
|
|
46 |
|
|
|
41 |
|
Additional paid-in-capital |
|
|
1,555,388 |
|
|
|
1,376,494 |
|
Accumulated deficit |
|
|
(710,269 |
) |
|
|
(677,900 |
) |
Accumulated other comprehensive loss |
|
|
1,474 |
|
|
|
2,668 |
|
Total stockholders' equity |
|
|
846,639 |
|
|
|
701,303 |
|
Noncontrolling interests |
|
|
460 |
|
|
|
466 |
|
Total equity |
|
|
847,099 |
|
|
|
701,769 |
|
Total liabilities and equity |
|
$ |
1,283,061 |
|
|
$ |
1,095,780 |
|
TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (In Thousands) |
||||||||||||||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
||||
Net income (loss) |
|
$ |
4,910 |
|
|
$ |
(26,407 |
) |
|
$ |
(32,375 |
) |
|
$ |
(91,581 |
) |
Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss on note receivable |
|
|
(429 |
) |
|
|
— |
|
|
|
(1,275 |
) |
|
|
— |
|
Change in liability of pension plans |
|
|
140 |
|
|
|
(207 |
) |
|
|
81 |
|
|
|
(485 |
) |
Total comprehensive income (loss) |
|
$ |
4,621 |
|
|
$ |
(26,614 |
) |
|
$ |
(33,569 |
) |
|
$ |
(92,066 |
) |
TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) |
||||||||
|
|
Nine Months |
|
|
Nine Months |
|
||
|
|
Ended |
|
|
Ended |
|
||
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
||
Operating activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(32,375 |
) |
|
$ |
(91,581 |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
62,539 |
|
|
|
54,605 |
|
Amortization of deferred drydocking and survey costs |
|
|
26,740 |
|
|
|
31,651 |
|
Amortization of debt premiums and discounts |
|
|
1,157 |
|
|
|
2,662 |
|
Provision for deferred income taxes |
|
|
134 |
|
|
|
167 |
|
Loss on asset dispositions, net |
|
|
826 |
|
|
|
2,954 |
|
Gain on bargain purchase |
|
|
(1,300 |
) |
|
|
— |
|
Loss on debt extinguishment |
|
|
— |
|
|
|
59 |
|
Affiliate credit loss impairment credit |
|
|
— |
|
|
|
(1,000 |
) |
Long-lived asset impairment and other |
|
|
714 |
|
|
|
2,167 |
|
Loss on warrants |
|
|
14,175 |
|
|
|
— |
|
Stock-based compensation expense |
|
|
5,344 |
|
|
|
4,199 |
|
Changes in assets and liabilities, net of effects of business acquisition: |
|
|
|
|
|
|
|
|
Trade and other receivables |
|
|
(30,301 |
) |
|
|
26,608 |
|
Changes in due to/from affiliate, net |
|
|
(20 |
) |
|
|
1,210 |
|
Accounts payable |
|
|
9,364 |
|
|
|
1,061 |
|
Accrued expenses |
|
|
(913 |
) |
|
|
(473 |
) |
Deferred drydocking and survey costs |
|
|
(43,883 |
) |
|
|
(17,388 |
) |
Other, net |
|
|
(17,315 |
) |
|
|
(8,833 |
) |
Net cash provided by (used in) operating activities |
|
|
(5,114 |
) |
|
|
8,068 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Proceeds from sales of assets |
|
|
8,475 |
|
|
|
33,956 |
|
Acquisitions, net of cash acquired |
|
|
(20,740 |
) |
|
|
— |
|
Additions to properties and equipment |
|
|
(11,708 |
) |
|
|
(2,583 |
) |
Net cash provided by (used in) investing activities |
|
|
(23,973 |
) |
|
|
31,373 |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Proceeds from stock offering |
|
|
70,630 |
|
|
|
— |
|
Repurchase of SPO acquisition warrants |
|
|
(70,630 |
) |
|
|
— |
|
Principal payments on long-term debt |
|
|
— |
|
|
|
(39,259 |
) |
Debt issuance and modification costs |
|
|
(393 |
) |
|
|
(855 |
) |
Debt extinguishment premium |
|
|
— |
|
|
|
(59 |
) |
Tax on share-based awards |
|
|
(2,276 |
) |
|
|
(793 |
) |
Net cash used in financing activities |
|
|
(2,669 |
) |
|
|
(40,966 |
) |
Net change in cash, cash equivalents and restricted cash |
|
|
(31,756 |
) |
|
|
(1,525 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
|
154,276 |
|
|
|
155,225 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
122,520 |
|
|
$ |
153,700 |
|
|
|
|
|
|
|
|
||
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
|
|
Cash paid during the year for: |
|
|
|
|
|
|
|
|
Interest, net of amounts capitalized |
|
$ |
7,979 |
|
|
$ |
10,083 |
|
Income taxes |
|
$ |
16,143 |
|
|
$ |
14,735 |
|
Supplemental disclosure of noncash investing activities: |
|
|
|
|
|
|
|
|
Acquisition of SPO |
|
$ |
162,648 |
|
|
$ |
— |
|
Supplemental disclosure of noncash financing activities: |
|
|
|
|
|
|
|
|
Warrants issued for SPO acquisition |
|
$ |
162,648 |
|
|
$ |
— |
|
Repurchase of SPO acquisition warrants |
|
$ |
992 |
|
|
$ |
— |
|
Note: Cash, cash equivalents and restricted cash at September 30, 2022 includes $2.5 million in long-term restricted cash, which is included in other assets in our consolidated balance sheet. |
TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (In Thousands) |
||||||||||||||||||||||||
|
|
Three Months Ended |
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional |
|
|
|
|
|
|
other |
|
|
Non |
|
|
|
|
|
|||
|
|
Common |
|
|
paid-in |
|
|
Accumulated |
|
|
comprehensive |
|
|
controlling |
|
|
|
|
|
|||||
|
|
stock |
|
|
capital |
|
|
deficit |
|
|
income (loss) |
|
|
interest |
|
|
Total |
|
||||||
Balance at June 30, 2022 |
|
$ |
42 |
|
|
$ |
1,554,561 |
|
|
$ |
(715,649 |
) |
|
$ |
1,763 |
|
|
$ |
930 |
|
|
$ |
841,647 |
|
Total comprehensive income (loss) |
|
|
— |
|
|
|
— |
|
|
|
5,380 |
|
|
|
(289 |
) |
|
|
(470 |
) |
|
|
4,621 |
|
Issuance of common stock |
|
|
4 |
|
|
|
72,253 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
72,257 |
|
Repurchase of SPO acquisition warrants |
|
|
— |
|
|
|
(73,249 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(73,249 |
) |
Amortization of share-based awards |
|
|
— |
|
|
|
1,823 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,823 |
|
Balance at September 30, 2022 |
|
$ |
46 |
|
|
$ |
1,555,388 |
|
|
$ |
(710,269 |
) |
|
$ |
1,474 |
|
|
$ |
460 |
|
|
$ |
847,099 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June 30, 2021 |
|
$ |
41 |
|
|
$ |
1,373,727 |
|
|
$ |
(613,708 |
) |
|
$ |
(1,082 |
) |
|
$ |
760 |
|
|
$ |
759,738 |
|
Total comprehensive loss |
|
|
— |
|
|
|
— |
|
|
|
(26,258 |
) |
|
|
(207 |
) |
|
|
(149 |
) |
|
|
(26,614 |
) |
Amortization of share-based awards |
|
|
— |
|
|
|
1,488 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,488 |
|
Balance at September 30, 2021 |
|
$ |
41 |
|
|
$ |
1,375,215 |
|
|
$ |
(639,966 |
) |
|
$ |
(1,289 |
) |
|
$ |
611 |
|
|
$ |
734,612 |
|
|
|
Nine Months Ended |
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional |
|
|
|
|
|
|
other |
|
|
Non |
|
|
|
|
|
|||
|
|
Common |
|
|
paid-in |
|
|
Accumulated |
|
|
comprehensive |
|
|
controlling |
|
|
|
|
|
|||||
|
|
stock |
|
|
capital |
|
|
deficit |
|
|
income (loss) |
|
|
interest |
|
|
Total |
|
||||||
Balance at December 31, 2021 |
|
$ |
41 |
|
|
$ |
1,376,494 |
|
|
$ |
(677,900 |
) |
|
$ |
2,668 |
|
|
$ |
466 |
|
|
$ |
701,769 |
|
Total comprehensive income (loss) |
|
|
— |
|
|
|
— |
|
|
|
(32,369 |
) |
|
|
(1,194 |
) |
|
|
(6 |
) |
|
|
(33,569 |
) |
Issuance of common stock |
|
|
5 |
|
|
|
72,252 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
72,257 |
|
SPO acquisition warrants |
|
|
— |
|
|
|
176,823 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
176,823 |
|
Repurchase of SPO acquisition warrants |
|
|
— |
|
|
|
(73,249 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(73,249 |
) |
Amortization of share-based awards |
|
|
— |
|
|
|
3,068 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,068 |
|
Balance at September 30, 2022 |
|
$ |
46 |
|
|
$ |
1,555,388 |
|
|
$ |
(710,269 |
) |
|
$ |
1,474 |
|
|
$ |
460 |
|
|
$ |
847,099 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2020 |
|
$ |
41 |
|
|
$ |
1,371,809 |
|
|
$ |
(548,931 |
) |
|
$ |
(804 |
) |
|
$ |
1,157 |
|
|
$ |
823,272 |
|
Total comprehensive loss |
|
|
— |
|
|
|
— |
|
|
|
(91,035 |
) |
|
|
(485 |
) |
|
|
(546 |
) |
|
|
(92,066 |
) |
Amortization of share-based awards |
|
|
— |
|
|
|
3,406 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,406 |
|
Balance at September 30, 2021 |
|
$ |
41 |
|
|
$ |
1,375,215 |
|
|
$ |
(639,966 |
) |
|
$ |
(1,289 |
) |
|
$ |
611 |
|
|
$ |
734,612 |
|
The company’s vessel revenues and vessel operating costs and the related percentage of total vessel revenues, were as follows:
(In Thousands) |
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||||||||||||||||||
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
||||||||||||||||||||
Vessel revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
$ |
39,122 |
|
|
|
21 |
% |
|
$ |
24,564 |
|
|
|
27 |
% |
|
$ |
105,086 |
|
|
|
23 |
% |
|
$ |
74,269 |
|
|
|
29 |
% |
Asia Pacific |
|
|
23,902 |
|
|
|
12 |
% |
|
|
4,786 |
|
|
|
5 |
% |
|
|
45,161 |
|
|
|
10 |
% |
|
|
13,228 |
|
|
|
5 |
% |
Middle East |
|
|
31,186 |
|
|
|
16 |
% |
|
|
20,847 |
|
|
|
23 |
% |
|
|
79,800 |
|
|
|
17 |
% |
|
|
62,447 |
|
|
|
24 |
% |
Europe/Mediterranean |
|
|
39,702 |
|
|
|
21 |
% |
|
|
21,197 |
|
|
|
23 |
% |
|
|
96,096 |
|
|
|
21 |
% |
|
|
58,413 |
|
|
|
22 |
% |
West Africa |
|
|
56,335 |
|
|
|
30 |
% |
|
|
20,240 |
|
|
|
22 |
% |
|
|
130,155 |
|
|
|
29 |
% |
|
|
52,784 |
|
|
|
20 |
% |
Total vessel revenues |
|
$ |
190,247 |
|
|
|
100 |
% |
|
$ |
91,634 |
|
|
|
100 |
% |
|
$ |
456,298 |
|
|
|
100 |
% |
|
$ |
261,141 |
|
|
|
100 |
% |
Vessel operating costs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crew costs |
|
$ |
71,189 |
|
|
|
37 |
% |
|
$ |
35,609 |
|
|
|
39 |
% |
|
$ |
172,665 |
|
|
|
38 |
% |
|
$ |
108,456 |
|
|
|
42 |
% |
Repair and maintenance |
|
|
13,544 |
|
|
|
7 |
% |
|
|
10,497 |
|
|
|
11 |
% |
|
|
36,482 |
|
|
|
8 |
% |
|
|
29,468 |
|
|
|
11 |
% |
Insurance |
|
|
1,988 |
|
|
|
1 |
% |
|
|
812 |
|
|
|
1 |
% |
|
|
4,738 |
|
|
|
1 |
% |
|
|
1,298 |
|
|
|
1 |
% |
Fuel, lube and supplies |
|
|
12,291 |
|
|
|
7 |
% |
|
|
6,751 |
|
|
|
7 |
% |
|
|
30,888 |
|
|
|
7 |
% |
|
|
19,152 |
|
|
|
7 |
% |
Other |
|
|
14,025 |
|
|
|
7 |
% |
|
|
11,675 |
|
|
|
13 |
% |
|
|
37,032 |
|
|
|
8 |
% |
|
|
32,253 |
|
|
|
12 |
% |
Total vessel operating costs |
|
|
113,037 |
|
|
|
59 |
% |
|
|
65,344 |
|
|
|
71 |
% |
|
|
281,805 |
|
|
|
62 |
% |
|
|
190,627 |
|
|
|
73 |
% |
Vessel operating margin (A) |
|
$ |
77,210 |
|
|
|
41 |
% |
|
$ |
26,290 |
|
|
|
29 |
% |
|
$ |
174,493 |
|
|
|
38 |
% |
|
$ |
70,514 |
|
|
|
27 |
% |
Note (A): Vessel operating margin equals vessel revenues less vessel operating costs. |
The company’s operating loss and other components of loss before income taxes and its related percentage of total revenues, were as follows:
(In Thousands) |
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||||||||||||||||||
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
||||||||||||||||||||
Vessel operating profit (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
$ |
2,952 |
|
|
|
2 |
% |
|
$ |
(1,770 |
) |
|
|
(2 |
)% |
|
$ |
8,800 |
|
|
|
2 |
% |
|
$ |
(8,361 |
) |
|
|
(3 |
)% |
Asia Pacific |
|
|
3,260 |
|
|
|
2 |
% |
|
|
1,357 |
|
|
|
1 |
% |
|
|
4,534 |
|
|
|
1 |
% |
|
|
3,023 |
|
|
|
1 |
% |
Middle East |
|
|
605 |
|
|
|
0 |
% |
|
|
(2,070 |
) |
|
|
(2 |
)% |
|
|
(1,585 |
) |
|
|
(0 |
)% |
|
|
(5,323 |
) |
|
|
(2 |
)% |
Europe/Mediterranean |
|
|
13,137 |
|
|
|
7 |
% |
|
|
(2,866 |
) |
|
|
(3 |
)% |
|
|
14,970 |
|
|
|
3 |
% |
|
|
(12,873 |
) |
|
|
(5 |
)% |
West Africa |
|
|
12,322 |
|
|
|
6 |
% |
|
|
(3,724 |
) |
|
|
(4 |
)% |
|
|
24,807 |
|
|
|
5 |
% |
|
|
(15,846 |
) |
|
|
(6 |
)% |
Other operating profit |
|
|
922 |
|
|
|
0 |
% |
|
|
412 |
|
|
|
0 |
% |
|
|
3,204 |
|
|
|
1 |
% |
|
|
2,714 |
|
|
|
1 |
% |
|
|
|
33,198 |
|
|
|
17 |
% |
|
|
(8,661 |
) |
|
|
(9 |
)% |
|
|
54,730 |
|
|
|
12 |
% |
|
|
(36,666 |
) |
|
|
(14 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate expenses (A) |
|
|
(13,188 |
) |
|
|
(7 |
)% |
|
|
(10,662 |
) |
|
|
(12 |
)% |
|
|
(39,600 |
) |
|
|
(9 |
)% |
|
|
(27,237 |
) |
|
|
(10 |
)% |
Gain (loss) on asset dispositions, net |
|
|
264 |
|
|
|
0 |
% |
|
|
(74 |
) |
|
|
(0 |
)% |
|
|
(826 |
) |
|
|
(0 |
)% |
|
|
(2,954 |
) |
|
|
(1 |
)% |
Affiliate credit loss impairment credit |
|
|
— |
|
|
|
0 |
% |
|
|
— |
|
|
|
0 |
% |
|
|
— |
|
|
|
0 |
% |
|
|
1,000 |
|
|
|
0 |
% |
Long-lived asset impairments and other |
|
|
(1,214 |
) |
|
|
0 |
% |
|
|
(2,167 |
) |
|
|
(2 |
)% |
|
|
(714 |
) |
|
|
(0 |
)% |
|
|
(2,167 |
) |
|
|
(1 |
)% |
Operating income (loss) |
|
$ |
19,060 |
|
|
|
10 |
% |
|
$ |
(21,564 |
) |
|
|
(23 |
)% |
|
$ |
13,590 |
|
|
|
3 |
% |
|
$ |
(68,024 |
) |
|
|
(26 |
)% |
Note (A): General and administrative expenses for the three months and nine months ended September 30, 2022 include stock-based compensation of $1.9 million and $5.3 million, respectively. General and administrative expenses for the three and nine months ended September 30, 2021 include stock-based compensation of $1.5 million and $4.2 million, respectively. In addition, vessel operating and general and administrative costs for the three months and nine months ended September 30, 2022, include $4.3 million and $14.0 million in one-time acquisition, restructuring and integration related costs, respectively. Vessel operating and general and administrative costs for the three and nine months ended September 30, 2021, include $0.1 million and $1.0 million in one-time restructuring and integration related costs, respectively. |
TIDEWATER INC. CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) – QUARTERLY DATA (In Thousands, except per share data) |
||||||||||||||||||||
|
|
Three Months Ended |
|
|||||||||||||||||
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|||||
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessel revenues |
|
$ |
190,247 |
|
|
$ |
162,175 |
|
|
$ |
103,876 |
|
|
$ |
100,428 |
|
|
$ |
91,634 |
|
Other operating revenues |
|
|
1,515 |
|
|
|
1,272 |
|
|
|
1,853 |
|
|
|
4,747 |
|
|
|
767 |
|
Total revenues |
|
|
191,762 |
|
|
|
163,447 |
|
|
|
105,729 |
|
|
|
105,175 |
|
|
|
92,401 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessel operating costs (A) |
|
|
113,037 |
|
|
|
100,257 |
|
|
|
68,511 |
|
|
|
71,187 |
|
|
|
65,344 |
|
Costs of other operating revenue |
|
|
592 |
|
|
|
483 |
|
|
|
361 |
|
|
|
228 |
|
|
|
355 |
|
General and administrative (A) |
|
|
27,267 |
|
|
|
27,804 |
|
|
|
18,217 |
|
|
|
17,641 |
|
|
|
18,045 |
|
Depreciation and amortization |
|
|
30,856 |
|
|
|
31,766 |
|
|
|
26,657 |
|
|
|
28,288 |
|
|
|
27,980 |
|
Long-lived asset impairment (credit) |
|
|
1,214 |
|
|
|
— |
|
|
|
(500 |
) |
|
|
13,476 |
|
|
|
2,167 |
|
Affiliate credit loss impairment expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,400 |
|
|
|
— |
|
(Gain) loss on asset dispositions, net |
|
|
(264 |
) |
|
|
1,297 |
|
|
|
(207 |
) |
|
|
(53 |
) |
|
|
74 |
|
Total operating costs and expenses |
|
|
172,702 |
|
|
|
161,607 |
|
|
|
113,039 |
|
|
|
132,167 |
|
|
|
113,965 |
|
Operating income (loss) |
|
|
19,060 |
|
|
|
1,840 |
|
|
|
(7,310 |
) |
|
|
(26,992 |
) |
|
|
(21,564 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange gain (loss) |
|
|
(3,997 |
) |
|
|
(1,881 |
) |
|
|
946 |
|
|
|
582 |
|
|
|
(523 |
) |
Equity in net earnings (losses) of unconsolidated companies |
|
|
9 |
|
|
|
(244 |
) |
|
|
— |
|
|
|
(1,625 |
) |
|
|
100 |
|
Interest income and other, net |
|
|
581 |
|
|
|
349 |
|
|
|
3,486 |
|
|
|
1,426 |
|
|
|
148 |
|
Loss on early extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(11,100 |
) |
|
|
— |
|
Loss on warrants |
|
|
— |
|
|
|
(14,175 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Interest and other debt costs, net |
|
|
(4,391 |
) |
|
|
(4,284 |
) |
|
|
(4,175 |
) |
|
|
(3,417 |
) |
|
|
(3,681 |
) |
Total other expense |
|
|
(7,798 |
) |
|
|
(20,235 |
) |
|
|
257 |
|
|
|
(14,134 |
) |
|
|
(3,956 |
) |
Income (loss) before income taxes |
|
|
11,262 |
|
|
|
(18,395 |
) |
|
|
(7,053 |
) |
|
|
(41,126 |
) |
|
|
(25,520 |
) |
Income tax (benefit) expense |
|
|
6,352 |
|
|
|
6,619 |
|
|
|
5,218 |
|
|
|
(3,047 |
) |
|
|
887 |
|
Net income (loss) |
|
|
4,910 |
|
|
|
(25,014 |
) |
|
|
(12,271 |
) |
|
|
(38,079 |
) |
|
|
(26,407 |
) |
Net income (loss) attributable to noncontrolling interests |
|
|
(470 |
) |
|
|
567 |
|
|
|
(103 |
) |
|
|
(145 |
) |
|
|
(149 |
) |
Net income (loss) attributable to Tidewater Inc. |
|
$ |
5,380 |
|
|
$ |
(25,581 |
) |
|
$ |
(12,168 |
) |
|
$ |
(37,934 |
) |
|
$ |
(26,258 |
) |
Basic income (loss) per common share |
|
$ |
0.12 |
|
|
$ |
(0.61 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.92 |
) |
|
$ |
(0.64 |
) |
Diluted income (loss) per common share |
|
$ |
0.10 |
|
|
$ |
(0.61 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.92 |
) |
|
$ |
(0.64 |
) |
Weighted average common shares outstanding |
|
|
44,451 |
|
|
|
41,814 |
|
|
|
41,412 |
|
|
|
41,280 |
|
|
|
41,132 |
|
Dilutive effect of warrants, restricted stock units and stock options |
|
|
7,069 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted weighted average common shares |
|
|
51,520 |
|
|
|
41,814 |
|
|
|
41,412 |
|
|
|
41,280 |
|
|
|
41,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessel operating margin |
|
$ |
77,210 |
|
|
$ |
61,918 |
|
|
$ |
35,365 |
|
|
$ |
29,241 |
|
|
$ |
26,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note (A) One-time acquisition, restructuring and integration related costs |
|
$ |
4,332 |
|
|
$ |
7,314 |
|
|
$ |
2,305 |
|
|
$ |
221 |
|
|
$ |
112 |
|
Contacts
Tidewater Inc.
West Gotcher
Vice President,
Finance and Investor Relations
+1.713.470.5285
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