tdw-ex991

NEW ORLEANS, LA. February 2, 2016 — Tidewater Inc. (NYSE:TDW) announced today a third quarter net loss for the period ended December 31, 2015, of $19.5 million, or $0.42 per common share, on revenues of $218.2 million. For the same quarter last year, net loss was $160.7 million, or $3.31 per common share, on revenues of $387.6 million. The immediately preceding quarter ended September 30, 2015, had a net loss of $43.8 million, or $0.93 per common share, on revenues of $271.9 million.

Included in the net loss for the quarter ended December 31, 2015 were the following:

Income tax expense in each of the fiscal 2016 quarters largely reflect tax liabilities in certain jurisdictions that levy taxes on bases other than pre-tax profitability (so called “deemed profit” regimes.)

Included in the net loss for the prior fiscal year’s quarter ended December 31, 2014 was the following:

Included in the net loss for the preceding quarter ended September 30, 2015 were the following:

As previously announced, Tidewater will hold a conference call to discuss December quarterly earnings on Wednesday, February 3, 2016, at 10:00 a.m. Central time. Investors and interested parties may listen to the

teleconference via telephone by calling 1-888-771-4371 if calling from the U.S. or Canada (1-847-585-4405 if calling from outside the U.S.) and ask for the “Tidewater” call just prior to the scheduled start. A replay of the conference call will be available beginning at 12:00 p.m. Central time on February 3, 2016, and will continue until 11:59 p.m. Central time on February 5, 2016. To hear the replay, call 1-888-843-7419 (1-630-652-3042 if calling from outside the U.S.). The conference call ID number is 41633331.

A simultaneous webcast of the conference call will be available online at the Tidewater Inc. website, (http://www.tdw.com). The online replay will be available until March 3, 2016.

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 involve 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 recent Forms 10-Q and 10-K.

Tidewater is the leading provider of Offshore Service Vessels (OSVs) to the global energy industry.

	Quarter Ended December 31,						Nine Months Ended December 31,
	2015			2014			2015			2014
Revenues:
Vessel revenues	$	212,908			378,126			775,352			1,150,588
Other operating revenues		5,283			9,428			19,536			20,167
		218,191			387,554			794,888			1,170,755
Costs and expenses:
Vessel operating costs		125,094			210,365			462,987			640,428
Costs of other operating revenues		3,778			8,395			15,624			19,616
General and administrative		35,598			46,642			116,837			144,464
Vessel operating leases		8,441			7,165			25,325			20,247
Depreciation and amortization		45,422			43,331			137,058			130,150
Gain on asset dispositions, net		(5,883	)		(4,699	)		(19,345	)		(13,092	)
Asset impairments		15,141			6,236			61,771			8,096
Goodwill impairment		—			283,699			—			283,699
Restructuring charge		—			—			7,586			—
		227,591			601,134			807,843			1,233,608
Operating loss		(9,400	)		(213,580	)		(12,955	)		(62,853	)
Other income (expenses):
Foreign exchange gain (loss)		(469	)		4,334			(3,758	)		8,453
Equity in net earnings (losses) of unconsolidated companies		(1,710	)		—			(7,070	)		9,104
Interest income and other, net		609			434			1,754			1,555
Interest and other debt costs, net		(13,312	)		(12,239	)		(39,741	)		(37,927	)
		(14,882	)		(7,471	)		(48,815	)		(18,815	)
Loss before income taxes		(24,282	)		(221,051	)		(61,770	)		(81,668	)
Income tax expense (benefit)		(4,679	)		(60,070	)		16,996			(25,211	)
Net loss	$	(19,603	)		(160,981	)		(78,766	)		(56,457	)
Less: Net losses attributable to noncontrolling interests	$	(94	)		(287	)		(370	)		(343	)
Net loss attributable to Tidewater Inc.	$	(19,509	)		(160,694	)		(78,396	)		(56,114	)
Basic loss per common share	$	(0.42	)		(3.31	)		(1.67	)		(1.14	)
Diluted loss per common share	$	(0.42	)		(3.31	)		(1.67	)		(1.14	)
Weighted average common shares outstanding		46,943,705			48,481,722			46,956,041			49,213,712
Dilutive effect of stock options and restricted stock		—			—			—			—
Adjusted weighted average common shares		46,943,705			48,481,722			46,956,041			49,213,712

ASSETS	December 31, 2015			March 31, 2015
Current assets:
Cash and cash equivalents	$	47,980			78,568
Trade and other receivables, net		261,209			303,096
Due from affiliate		336,474			420,365
Marine operating supplies		38,719			49,005
Other current assets		60,819			17,781
Total current assets		745,201			868,815
Investments in, at equity, and advances to unconsolidated companies		45,663			65,844
Properties and equipment:
Vessels and related equipment		4,681,306			4,717,132
Other properties and equipment		120,969			119,879
		4,802,275			4,837,011
Less accumulated depreciation and amortization		1,194,974			1,090,704
Net properties and equipment		3,607,301			3,746,307
Other assets		82,350			75,196
Total assets	$	4,480,515			4,756,162

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	61,019			54,011
Accrued expenses		96,604			146,255
Due to affiliate		169,943			185,657
Accrued property and liability losses		3,443			3,669
Current portion of long-term debt		9,810			10,181
Other current liabilities		66,253			82,461
Total current liabilities		407,072			482,234
Long-term debt		1,441,924			1,524,295
Deferred income taxes		35,600			23,276
Accrued property and liability losses		9,748			10,534
Other liabilities and deferred credits		210,239			235,108

Commitments and Contingencies

Equity:
Common stock of $0.10 par value, 125,000,000 shares authorized, issued 46,969,590 shares at December 31, 2015 and 47,029,359 shares at March 31, 2015		4,697			4,703
Additional paid-in capital		168,753			159,940
Retained earnings		2,216,862			2,330,223
Accumulated other comprehensive loss		(20,237	)		(20,378	)
Total stockholders’ equity		2,370,075			2,474,488
Noncontrolling Interests		5,857			6,227
Total equity		2,375,932			2,480,715
Total liabilities and equity	$	4,480,515			4,756,162

	Nine Months Ended December 31,
	2015			2014
Operating activities:
Net loss	$	(78,766	)		(56,457	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		137,058			130,150
Provision (benefit) for deferred income taxes		192			(77,278	)
Gain on asset dispositions, net		(19,345	)		(13,092	)
Asset impairments		61,771			8,096
Goodwill impairment		—			283,699
Equity in earnings (losses) of unconsolidated companies, less dividends		22,087			(1,550	)
Compensation expense—stock-based		9,960			16,395
Changes in assets and liabilities, net:
Trade and other receivables		38,726			(48,876	)
Changes in due to/from affiliate, net		68,177			78,881
Marine operating supplies		9,786			1,243
Other current assets		1,711			3,090
Accounts payable		6,862			(29,052	)
Accrued expenses		(51,068	)		(6,856	)
Accrued property and liability losses		(226	)		(366	)
Other current liabilities		(17,239	)		(437	)
Other liabilities and deferred credits		2,406			(3,025	)
Other, net		(699	)		(9,006	)
Net cash provided by operating activities		191,393			275,559
Cash flows from investing activities:
Proceeds from sales of assets		8,428			5,160
Proceeds from sale/leaseback of assets		—			110,694
Additions to properties and equipment		(152,225	)		(231,685	)
Refunds from cancelled vessel construction contracts		36,190			—
Other		(210	)		127
Net cash used in investing activities		(107,817	)		(115,704	)
Cash flows from financing activities:
Principal payment on long-term debt		(109,163	)		(27,206	)
Debt borrowings		31,338			20,000
Proceeds from exercise of stock options		—			1,025
Cash dividends		(35,378	)		(36,997	)
Repurchases of common stock		—			(99,999	)
Other		(961	)		351
Net cash used in financing activities		(114,164	)		(142,826	)
Net change in cash and cash equivalents		(30,588	)		17,029
Cash and cash equivalents at beginning of period		78,568			60,359
Cash and cash equivalents at end of period	$	47,980			77,388
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest, net of amounts capitalized	$	47,608			48,046
Income taxes	$	38,208			57,987
Supplemental disclosure of non-cash investing activities:
Additions to properties and equipment	$	146			3,386

	Common stock			Additional paid-in capital		Retained earnings			Accumulated other comprehensive loss			Non controlling interest			Total
Balance at March 31, 2015	$	4,703			159,940		2,330,223			(20,378	)		6,227			2,480,715
Total comprehensive loss		—			—		(78,396	)		141			(370	)		(78,625	)
Stock option expense		—			609		—			—			—			609
Cash dividends declared ($.75 per share)		—			—		(34,965	)		—			—			(34,965	)
Amortization of restricted stock units		1			7,843		—			—			—			7,844
Amortization/cancellation of restricted stock		(7	)		361		—			—			—			354
Balance at December 31, 2015	$	4,697			168,753		2,216,862			(20,237	)		5,857			2,375,932

Balance at March 31, 2014	$	4,973			142,381		2,544,255			(12,225	)		5,987			2,685,371
Total comprehensive loss		—			—		(56,114	)		559			(343	)		(55,898	)
Exercise of stock options		3			1,022		—			—			—			1,025
Cash dividends declared ($.75 per share)		—			—		(37,229	)		—			—			(37,229	)
Retirement of common stock		(284	)		—		(99,715	)		—			—			(99,999	)
Amortization of restricted stock units		1			12,495		—			—			—			12,496
Amortization/cancellation of restricted stock		(4	)		2,603		—			—			—			2,599
Cash received from noncontrolling interests		—			—		—			—			450			450
Cash paid to noncontrolling interests		—			—		—			—			(50	)		(50	)
Balance at December 31, 2014	$	4,689			158,501		2,351,197			(11,666	)		6,044			2,508,765

The company’s vessel revenues and vessel operating costs and the related percentage of total vessel revenues for the quarters and the nine-month periods ended December 31, 2015 and 2014 and for the quarter ended September 30, 2015, were as follows:

	Quarter Ended December 31,										Nine Months Ended December 31,										Quarter Ended September 30,
(In thousands)	2015		%			2014		%			2015		%			2014		%			2015		%
Vessel revenues:
Americas	$	75,963		36	%		134,554		36	%		279,345		36	%		388,550		34	%		89,210		34	%
Asia/Pacific		19,144		9	%		35,046		9	%		79,254		10	%		121,284		10	%		32,173		12	%
Middle East/North Africa		40,184		19	%		55,925		15	%		132,786		17	%		160,301		14	%		45,336		17	%
Sub-Saharan Africa/ Europe		77,617		36	%		152,601		40	%		283,967		37	%		480,453		42	%		97,412		37	%
Total vessel revenues	$	212,908		100	%		378,126		100	%		775,352		100	%		1,150,588		100	%		264,131		100	%
Vessel operating costs:
Crew costs	$	71,270		33	%		104,167		28	%		247,670		32	%		330,086		29	%		84,112		32	%
Repair and maintenance		14,811		7	%		46,418		12	%		80,593		10	%		133,481		12	%		28,528		11	%
Insurance and loss reserves		1,689		1	%		3,093		1	%		9,815		1	%		10,470		1	%		2,751		1	%
Fuel, lube and supplies		16,369		8	%		24,710		7	%		51,626		7	%		69,900		6	%		17,147		6	%
Other		20,955		10	%		31,977		8	%		73,283		10	%		96,491		8	%		26,074		10	%
Total vessel operating costs		125,094		59	%		210,365		56	%		462,987		60	%		640,428		56	%		158,612		60	%
Vessel operating margin (A)	$	87,814		41	%		167,761		44	%		312,365		40	%		510,160		44	%		105,519		40	%

Note (A): The following table reconciles vessel operating margin as presented above to operating profit for the quarters and the nine-month periods ended December 31, 2015 and 2014 and for the quarter ended September 30, 2015:

The company’s other operating loss for the quarters and the nine-month periods ended December 31, 2015 and 2014 and for the quarter ended September 30, 2015, consists of the following:

The company’s operating loss and other components of loss before income taxes, and its related percentage of total revenues for the quarters and nine-month periods ended December 31, 2015 and 2014 and for the quarter ended September 30, 2015, were as follows:

	Quarter Ended December 31,					Nine Months Ended December 31,				Quarter Ended September 30,
(In thousands)	2015		%	2014	%	2015	%	2014	%	2015	%
Vessel operating profit (loss):
Americas (B)	$	9,289	4%	33,784	8%	41,940	5%	100,770	8%	8,812	3%
Asia/Pacific (B)		(3,796)	(2%)	2,621	1%	4,122	1%	9,064	1%	6,168	2%
Middle East/North Africa		5,849	3%	12,408	3%	21,524	3%	31,568	3%	7,515	3%
Sub-Saharan Africa/Europe		(2,079)	(1%)	34,120	9%	2,459	<1%	113,168	10%	3,247	1%
		9,263	4%	82,933	21%	70,045	9%	254,570	22%	25,742	9%
Other operating loss		(626)	(<1%)	(1,032)	(<1%)	(3,120)	(<1%)	(5,548)	(<1%)	(658)	(<1%)
		8,637	4%	81,901	21%	66,925	9%	249,022	22%	25,084	9%

Corporate general and administrative expenses		(7,150)	(3%)	(9,411)	(3%)	(25,096)	(3%)	(30,686)	(3%)	(7,932)	(3%)
Corporate depreciation		(1,629)	(1%)	(834)	(<1%)	(4,772)	(1%)	(2,486)	(<1%)	(1,649)	(<1%)
Corporate expenses		(8,779)	(4%)	(10,245)	(3%)	(29,868)	(4%)	(33,172)	(3%)	(9,581)	(3%)

Gain on asset dispositions, net		5,883	2%	4,699	1%	19,345	2%	13,092	1%	6,111	2%
Asset impairments		(15,141)	(6%)	(6,236)	(1%)	(61,771)	(7%)	(8,096)	(1%)	(31,672)	(11%)
Goodwill impairment		—	—	(283,699)	(73%)	—	—	(283,699)	(24%)	—	—
Restructuring charge		—	—	—	—	(7,586)	(1%)	—	—	(7,586)	(3%)
Operating loss	$	(9,400)	(4%)	(213,580)	(55%)	(12,955)	(1%)	(62,853)	(5%)	(17,644)	(6%)
Foreign exchange gain (loss)		(469)	(<1%)	4,334	1%	(3,758)	(1%)	8,453	1%	844	<1%
Equity in net earnings (losses) of unconsolidated companies		(1,710)	(1%)	—	—	(7,070)	(1%)	9,104	1%	(2,919)	(1%)
Interest income and other, net		609	<1%	434	<1%	1,754	<1%	1,555	<1%	355	<1%
Interest and other debt costs, net		(13,312)	(6%)	(12,239)	(3%)	(39,741)	(5%)	(37,927)	(3%)	(13,247)	(5%)
Loss before income taxes	$	(24,282)	(11%)	(221,051)	(57%)	(61,770)	(8%)	(81,668)	(7%)	(32,611)	(12%)

Note (B): Nine months ended December 31, 2015 figures exclude restructuring charges of $3.6 million and $4.0 million related to our Americas and Asia/Pacific segments, respectively, which were incurred during the quarter ended September 30, 2015.

The company’s revenues, day-based vessel utilization percentages and average day rates by vessel class and in total for the quarters and the nine-month periods ended December 31, 2015 and 2014 and for the quarter ended September 30, 2015, were as follows:

	Quarter Ended December 31,					Nine Months Ended December 31,				Quarter Ended September 30,
	2015			2014		2015		2014		2015
REVENUE BY VESSEL CLASS (In thousands):
Americas fleet:
Deepwater	$	49,792			94,298		191,720		267,983		61,776
Towing-supply		22,254			33,607		75,890		97,511		24,121
Other		3,917			6,649		11,735		23,056		3,313
Total	$	75,963			134,554		279,345		388,550		89,210
Asia/Pacific fleet:
Deepwater	$	13,267			20,575		56,535		72,492		23,435
Towing-supply		5,877			13,487		22,719		45,862		8,738
Other		—			984		—		2,930		—
Total	$	19,144			35,046		79,254		121,284		32,173
Middle East/North Africa fleet:
Deepwater	$	17,690			25,615		58,845		64,336		20,769
Towing-supply		21,795			29,441		71,898		93,435		23,914
Other		699			869		2,043		2,530		653
Total	$	40,184			55,925		132,786		160,301		45,336
Sub-Saharan Africa/Europe fleet:
Deepwater	$	30,361			81,129		124,282		262,013		39,955
Towing-supply		35,186			52,532		118,490		162,585		42,106
Other		12,070			18,940		41,195		55,855		15,351
Total	$	77,617			152,601		283,967		480,453		97,412
Worldwide fleet:
Deepwater	$	111,110			221,617		431,382		666,824		145,935
Towing-supply		85,112			129,067		288,997		399,393		98,879
Other		16,686			27,442		54,973		84,371		19,317
Total	$	212,908			378,126		775,352		1,150,588		264,131
UTILIZATION:
Americas fleet:
Deepwater		53.6	%		87.3		66.5		89.3		65.1
Towing-supply		48.9			74.5		56.7		69.1		56.5
Other		60.4			56.7		50.7		67.7		47.8
Total		52.7	%		77.2		60.7		77.7		59.7
Asia/Pacific fleet:
Deepwater		40.6	%		66.9		48.4		73.3		59.9
Towing-supply		62.6			76.6		71.7		86.9		79.7
Other		—			100.0		—		100.0		—
Total		51.0	%		73.9		59.0		82.3		68.3
Middle East/North Africa fleet:
Deepwater		65.4	%		89.3		69.8		80.8		73.7
Towing-supply		66.9			79.6		72.7		81.4		74.9
Other		100.0			100.0		97.2		97.3		91.9
Total		67.8	%		83.2		72.9		81.9		75.2
Sub-Saharan Africa/Europe fleet:
Deepwater		50.6	%		85.7		58.7		85.8		57.2
Towing-supply		58.5			78.8		63.0		77.5		63.9
Other		71.5			73.3		71.6		74.2		73.5
Total		60.4	%		78.7		64.6		78.7		65.1
Worldwide fleet:
Deepwater		52.5	%		84.9		62.0		85.2		63.0
Towing-supply		58.9			77.7		65.1		77.5		67.0
Other		69.1			71.0		67.0		73.9		67.9
Total		58.4	%		78.6		64.3		79.2		65.7

	Quarter Ended December 31,				Nine Months Ended December 31,				Quarter Ended September 30,
	2015		2014		2015		2014		2015
AVERAGE VESSEL DAY RATES:
Americas fleet:
Deepwater	$	25,584		32,612		26,984		31,686		26,254
Towing-supply		17,071		16,890		16,797		16,932		16,003
Other		7,050		9,314		7,762		8,772		7,461
Total	$	19,962		24,048		21,268		23,067		20,725
Asia/Pacific fleet:
Deepwater	$	27,345		35,821		33,858		39,250		34,487
Towing-supply		6,379		13,664		7,593		13,701		7,907
Other		—		10,692		—		10,653		—
Total	$	13,611		21,195		17,000		22,176		18,028
Middle East/North Africa fleet:
Deepwater	$	20,995		24,586		21,500		24,257		20,738
Towing-supply		11,430		12,870		11,599		13,438		11,200
Other		3,800		4,723		3,779		4,727		3,737
Total	$	13,699		15,918		14,013		15,808		13,692
Sub-Saharan Africa/Europe fleet:
Deepwater	$	18,355		28,675		21,462		30,020		20,876
Towing-supply		15,565		16,859		16,225		16,879		17,009
Other		4,764		5,976		5,241		5,819		5,731
Total	$	12,037		16,743		13,552		17,184		13,782
Worldwide fleet:
Deepwater	$	22,546		30,205		24,932		30,751		24,535
Towing-supply		13,315		15,401		13,754		15,546		13,689
Other		5,098		6,598		5,546		6,472		5,858
Total	$	14,589		19,024		16,077		19,045		16,039

The company’s average number of vessels by class and geographic distribution for the quarters and the nine-month periods ended December 31, 2015 and 2014 and for the quarter ended September 30, 2015:

	Quarter Ended December 31,				Nine Months Ended December 31,				Quarter Ended September 30,
	2015		2014		2015		2014		2015
Americas fleet:
Deepwater		40		36		39		34		40
Towing-supply		29		29		29		30		29
Other		10		14		11		14		10
Total		79		79		79		78		79
Less stacked vessels		18		9		15		8		14
Active vessels		61		70		64		70		65
Asia/Pacific fleet:
Deepwater		13		9		13		9		12
Towing-supply		16		14		15		14		15
Other		1		1		1		1		1
Total		30		24		29		24		28
Less stacked vessels		12		—		7		—		7
Active vessels		18		24		22		24		21
Middle East/North Africa fleet:
Deepwater		14		13		14		12		15
Towing-supply		31		31		31		31		31
Other		2		2		2		2		2
Total		47		46		47		45		48
Less stacked vessels		5		—		4		—		4
Active vessels		42		46		43		45		44
Sub-Saharan Africa/Europe fleet:
Deepwater		36		36		36		37		36
Towing-supply		42		43		42		45		42
Other		38		47		40		47		40
Total		116		126		118		129		118
Less stacked vessels		22		7		17		6		19
Active vessels		94		119		101		123		99
Active owned or chartered vessels		215		259		230		262		229
Stacked vessels		57		16		43		14		44
Total owned or chartered vessels		272		275		273		276		273
Joint-venture and other		9		10		9		11		9
Total		281		285		282		287		282

Note (C): Included in total owned or chartered vessels at December 31, 2015 and 2014 and at September 30, 2015, were 70, 16 and 51 vessels, respectively, that were stacked by the company. These vessels were considered to be in service and are included in the calculation of the company’s utilization statistics.

The table below summarizes the various commitments to acquire and construct new vessels, by vessel type, as of December 31, 2015:

(In thousands)

Number

Vessels

Shipyard

Location

Delivery

Dates

Total

Cost

Amount

Invested

12/31/15

Remaining

Balance

12/31/15

Towing-supply:

7,145 BHP Towing-supply

International

1/2016

16,280

13,580

2,700

Deepwater

261-foot PSV

International

4/2016, 5/2016

275-foot PSV

International

1/2016

292-foot PSV

International

9/2016

300-foot PSV

United States

1/2017, 5/2017

310-foot PSV

United States

1/2016, 4/2016

Total Deepwater PSVs

335,746

231,256

104,490

Total vessel commitments

352,026

244,836

107,190

Note (D): Six additional option vessels and a fast supply boat are not included in the table above. The company is entitled to receive a refund of prior shipyard payments totaling approximately $43 million (of which $12 million was received in January 2016) which would offset the remaining balance of vessel commitments.

The table below summarizes by vessel class and vessel type the number of vessels expected to be delivered by quarter along with the expected cash outlay (in thousands) of the various remaining shipbuilding commitments:

	Quarter Period Ended
Vessel class and type	03/16		06/16		09/16		12/16		03/17		06/17
Deepwater PSVs		2		3		1		—		1		1
Towing-supply vessels		1		—		—		—		—		—
Totals		3		3		1		—		1		1
(In thousands)
Expected quarterly cash outlay	$	39,676		13,643		40,358		2,310		6,313		4,890