EX-99.1

EX-99.1 2 d771412dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

LOGO

Tidewater Reports First Quarter Results For Fiscal 2015

NEW ORLEANS, LA. August 5, 2014 — Tidewater Inc. (NYSE:TDW) announced today first quarter net earnings for the period ended June 30, 2014, of $43.7 million, or $0.88 per common share, on revenues of $385.7 million. For the same quarter last year, net earnings were $30.1 million, or $0.61 per common share, on revenues of $334.1 million. The immediately preceding quarter ended March 31, 2014, had net earnings of $43.4 million, or $0.88 per common share, on revenues of $367.8 million.

As previously announced, Tidewater will hold a conference call to discuss June quarterly earnings on Wednesday, August 6, 2014, 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 August 6, 2014, and will continue until 11:59 p.m. Central time on August 8, 2014. 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 37748027.

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 September 6, 2014.

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.

Note: all per-share amounts are stated on a diluted basis.

CONTACT: Tidewater Inc., New Orleans

Joe Bennett, Executive Vice President and Chief Investor Relations Officer

504-566-4506

SOURCE: Tidewater Inc.

Financial information is displayed on the next page.

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

(In thousands, except share and per share data)


		Three Months Ended June 30,
		2014			2013
Revenues:
Vessel revenues	$		381,510			331,630
Other operating revenues			4,167			2,455
			385,677			334,085
Costs and expenses:
Vessel operating costs			217,244			196,161
Costs of other operating revenues			4,661			2,020
General and administrative			51,060			50,480
Vessel operating leases			6,540			4,031
Depreciation and amortization			43,111			40,108
Gain on asset dispositions, net			(2,943	)		(2,140	)
			319,673			290,660
Operating income			66,004			43,425
Other income (expenses):
Foreign exchange loss			(1,289	)		(89	)
Equity in net earnings of unconsolidated companies			5,283			4,420
Interest income and other, net			622			740
Interest and other debt costs, net			(13,129	)		(8,913	)
			(8,513	)		(3,842	)
Earnings before income taxes			57,491			39,583
Income tax expense			13,792			9,500
Net earnings			43,699			30,083
Less: Net earnings attributable to noncontrolling interests			26			---
Net earnings attributable to Tidewater Inc.	$		43,673			30,083


Basic earnings attributable to Tidewater Inc. per common share	$		0.88			0.61

Diluted earnings attributable to Tidewater Inc. per common share	$		0.88			0.61

Weighted average common shares outstanding			49,580,038			49,226,911
Dilutive effect of stock options and restricted stock			282,986			331,090
Adjusted weighted average common shares			49,863,024			49,558,001

TIDEWATER INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and par value data)


ASSETS	June 30, 2014			March 31, 2014
Current assets:
Cash and cash equivalents	$	53,451			60,359
Trade and other receivables, net		291,341			252,421
Due from affiliate		430,167			429,450
Marine operating supplies		63,214			57,392
Other current assets		33,121			20,587
Total current assets		871,294			820,209
Investments in, at equity, and advances to unconsolidated companies		67,926			63,928
Properties and equipment:
Vessels and related equipment		4,519,296			4,521,102
Other properties and equipment		97,867			97,714
		4,617,163			4,618,816
Less accumulated depreciation and amortization		1,001,989			997,208
Net properties and equipment		3,615,174			3,621,608
Goodwill		283,699			283,699
Other assets		92,751			96,385
Total assets	$	4,930,844			4,885,829

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	74,814			74,515
Accrued expenses		131,355			157,302
Due to affiliate		118,456			86,154
Accrued property and liability losses		3,264			3,631
Current portion of long term debt		10,395			9,512
Other current liabilities		71,489			70,567
Total current liabilities		409,773			401,681
Long-term debt		1,500,960			1,505,358
Deferred income taxes		110,146			108,929
Accrued property and liability losses		2,147			5,286
Other liabilities and deferred credits		184,756			179,204

Commitments and Contingencies

Equity:
Common stock of $0.10 par value, 125,000,000 shares authorized, issued 49,720,702 shares at June 30, 2014 and 49,730,442 shares at March 31, 2014		4,972			4,973
Additional paid-in capital		148,216			142,381
Retained earnings		2,575,339			2,544,255
Accumulated other comprehensive loss		(11,877	)		(12,225	)
Total stockholders’ equity		2,716,650			2,679,384
Noncontrolling Interests		6,412			5,987
Total equity		2,723,062			2,685,371
Total liabilities and equity	$	4,930,844			4,885,829

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In thousands)


		Three Months Ended June 30,
		2014		2013
Net earnings	$		43,699		30,083
Other comprehensive income/(loss):
Unrealized gains on available for sale securities, net of tax of $55 and $60			101		111
Amortization of loss on derivative contract, net of tax of $63 and $63			116		117
Change in other benefit plan minimum liability, net of tax of $70 and $0			131		---
Total comprehensive income	$		44,047		30,311

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)


		Three Months Ended June 30,
		2014			2013
Operating activities:
Net earnings	$		43,699			30,083
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization			43,111			40,108
Provision (benefit) for deferred income taxes			2,432			(12,151	)
Gain on asset dispositions, net			(2,943	)		(2,140	)
Equity in earnings of unconsolidated companies, less dividends			(3,998	)		(3,398	)
Compensation expense - stock-based			5,341			5,711
Excess tax benefit on stock options exercised			---			(12	)
Changes in assets and liabilities, net:
Trade and other receivables			(39,044	)		18,891
Changes in due to/from affiliate, net			31,552			(48,515	)
Marine operating supplies			(5,822	)		1,100
Other current assets			(12,534	)		(11,589	)
Accounts payable			(5,360	)		(11,459	)
Accrued expenses			(25,590	)		(8,421	)
Accrued property and liability losses			(367	)		158
Other current liabilities			(616	)		944
Other liabilities and deferred credits			817			876
Other, net			267			3,409
Net cash provided by operating activities			30,945			3,595
Cash flows from investing activities:
Proceeds from sales of assets			3,754			2,161
Proceeds from sale/leaseback of assets			13,400			---
Additions to properties and equipment			(39,874	)		(156,434	)
Payments for acquisition, net of cash acquired			---			(127,737	)
Other			3			(665	)
Net cash used in investing activities			(22,717	)		(282,675	)
Cash flows from financing activities:
Debt issuance costs			---			(2,699	)
Principal payment on long-term debt			(3,959	)		(97,490	)
Debt borrowings			---			414,262
Proceeds from exercise of stock options			994			1,675
Cash dividends			(12,520	)		(12,436	)
Excess tax benefit on stock options exercised			---			12
Other			349			---
Net cash (used in) provided by financing activities			(15,136	)		303,324
Net change in cash and cash equivalents			(6,908	)		24,244
Cash and cash equivalents at beginning of period			60,359			40,569
Cash and cash equivalents at end of period	$		53,451			64,813
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest, net of amounts capitalized	$		24,385			3,980
Income taxes	$		11,170			20,617
Supplemental disclosure of non-cash investing activities:
Additions to properties and equipment	$		5,236			130
Increase in receivables due to sale of shipyard	$		---			9,500

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

(In thousands)


		Common stock			Additional paid-in capital		Retained earnings			Accumulated other comprehensive loss			Non controlling interest			Total
Balance at March 31, 2014	$		4,973			142,381		2,544,255			(12,225	)		5,987			2,685,371
Total comprehensive income			---			---		43,673			348			26			44,047
Exercise of stock options			3			997		---			---			---			1,000
Cash dividends declared ($.25 per share)			---			---		(12,589	)		---			---			(12,589	)
Amortization of restricted stock units			---			992		---			---			---			992
Amortization/cancellation of restricted stock			(4	)		3,846		---			---			---			3,842
Cash received from noncontrolling interests			---			---		---			---			449			449
Cash paid to noncontrolling interests			---			---		---			---			(50	)		(50	)
Balance at June 30, 2014	$		4,972			148,216		2,575,339			(11,877	)		6,412			2,723,062

Balance at March 31, 2013	$		4,949			119,975		2,453,973			(17,141	)		---			2,561,756
Total comprehensive income			---			---		30,083			228			---			30,311
Exercise of stock options			5			1,688		---			---			---			1,693
Cash dividends declared ($.25 per share)			---			---		(12,499	)		---			---			(12,499	)
Amortization of restricted stock units			---			3,034		---			---			---			3,034
Amortization/cancellation of restricted stock			(3	)		1,175		---			---			---			1,172
Balance at June 30, 2013	$		4,951			125,872		2,471,557			(16,913	)		---			2,585,467

The company’s vessel revenues and vessel operating costs and the related percentage of total vessel revenues for the quarters ended June 30, 2014 and 2013 and for the quarter ended March 31, 2014, were as follows:


		Quarter Ended June 30,									Quarter Ended March 31,
(In thousands)		2014		%		2013			%		2014		%
Vessel revenues:
Americas	$		119,983		31%		90,244			27%		108,710		30%
Asia/Pacific			40,249		11%		42,956			13%		37,907		10%
Middle East/North Africa			55,539		15%		41,213			13%		48,783		14%
Sub-Saharan Africa/Europe			165,739		43%		157,217			47%		167,050		46%
Total vessel revenues	$		381,510		100%		331,630			100%		362,450		100%
Vessel operating costs:
Crew costs	$		111,285		29%		93,232			28%		100,951		28%
Repair and maintenance			47,732		13%		48,093			14%		49,322		14%
Insurance and loss reserves			5,394		1%		6,020			2%		5,274		1%
Fuel, lube and supplies			22,369		6%		18,805			6%		19,858		5%
Other			30,464		8%		30,011			9%		31,329		9%
Total vessel operating costs			217,244		57%		196,161			59%		206,734		57%
Vessel operating margin (A)	$		164,266		43%		135,469			41%		155,716		43%

Note (A): The following table reconciles vessel operating margin as presented above to operating profit for the quarters ended June 30, 2014 and 2013 and for the quarter ended March 31, 2014:

		Quarter Ended June 30,									Quarter Ended March 31,
(In thousands)		2014				2013					2014
Vessel operating margin	$		164,266				135,469					155,716
General and administrative – vessel operations			(37,669)				(33,810	)				(35,275)
Vessel operating leases			(6,540)				(4,031	)				(8,151)
Depreciation and amortization – vessel operations			(41,425)				(39,396	)				(41,843)
Vessel operating profit	$		78,632				58,232					70,447

The company’s other operating profit for the quarters ended June 30, 2014 and 2013 and for the quarter ended March 31, 2014, consists of the following:

		Quarter Ended June 30,									Quarter Ended March 31,
(In thousands)		2014				2013					2014
Other operating revenues	$		4,167				2,455					5,383
Costs of other operating revenues			(4,661)				(2,020	)				(5,588)
General and administrative – other operating activities			(1,059)				(825	)				(1,026)
Depreciation – other operating activities			(870)				(2	)				(292)
Other operating profit	$		(2,423)				(392	)				(1,523)

The company’s operating income and other components of earnings before income taxes, and its related percentage of total revenues for the quarters ended June 30, 2014 and 2013 and for the quarter ended March 31, 2014, were as follows:


		Quarter Ended June 30,								Quarter Ended March 31,
(In thousands)		2014		%		2013		%		2014		%
Vessel operating profit:
Americas	$		30,208		8%		20,301		6%		21,381		6%
Asia/Pacific			(971)		(1%)		10,289		3%		8,016		2%
Middle East/North Africa			11,793		3%		10,123		3%		8,240		2%
Sub-Saharan Africa/Europe			37,602		10%		17,519		5%		32,810		9%
			78,632		20%		58,232		17%		70,447		19%
Other operating profit			(2,423)		(1%)		(392)		(<1%)		(1,523)		(<1%)
			76,209		19%		57,840		17%		68,924		19%
Corporate general and administrative expenses			(12,332)		(3%)		(15,845)		(5%)		(9,434)		(3%)
Corporate depreciation			(816)		(<1%)		(710)		(<1%)		(790)		(<1%)
Corporate expenses			(13,148)		(3%)		(16,555)		(5%)		(10,224)		(3%)

Gain on asset dispositions, net			2,943		1%		2,140		1%		2,363		1%
Operating income	$		66,004		17%		43,425		13%		61,063		17%
Foreign exchange loss			(1,289)		(<1%)		(89)		(<1%)		(2,728)		(1%)
Equity in net earnings of unconsolidated companies			5,283		1%		4,420		1%		4,929		1%
Interest income and other, net			622		<1%		740		<1%		708		<1%
Interest and other debt costs, net			(13,129)		(3%)		(8,913)		(3%)		(12,733)		(3%)
Earnings before income taxes	$		57,491		15%		39,583		12%		51,239		14%

The company’s revenues, day-based vessel utilization percentages and average day rates by vessel class and in total for the quarters ended June 30, 2014 and 2013 and the quarter ended March 31, 2014, were as follows:


		Quarter Ended June 30,					Quarter Ended March 31,
		2014			2013		2014
REVENUE BY VESSEL CLASS (in thousands):
Americas fleet:
Deepwater	$		82,282			55,032		74,859
Towing-supply			29,517			27,670		26,073
Other			8,184			7,542		7,778
Total	$		119,983			90,244		108,710
Asia/Pacific fleet:
Deepwater	$		24,242			24,292		23,834
Towing-supply			15,037			17,722		13,114
Other			970			942		959
Total	$		40,249			42,956		37,907
Middle East/North Africa fleet:
Deepwater	$		19,467			15,852		16,114
Towing-supply			35,279			24,497		31,979
Other			793			864		690
Total	$		55,539			41,213		48,783
Sub-Saharan Africa/Europe fleet:
Deepwater	$		91,691			87,251		86,064
Towing-supply			55,436			54,860		59,803
Other			18,612			15,106		21,183
Total	$		165,739			157,217		167,050
Worldwide fleet:
Deepwater	$		217,682			182,427		200,871
Towing-supply			135,269			124,749		130,969
Other			28,559			24,454		30,610
Total	$		381,510			331,630		362,450
UTILIZATION:
Americas fleet:
Deepwater			88.7	%		77.8		83.7
Towing-supply			62.7			43.3		59.5
Other			69.3			82.2		78.4
Total			74.8	%		60.1		73.2
Asia/Pacific fleet:
Deepwater			70.6	%		92.7		84.7
Towing-supply			90.7			64.5		82.7
Other			100.0			100.0		100.0
Total			83.5	%		72.2		84.1
Middle East/North Africa fleet:
Deepwater			72.1	%		91.3		71.3
Towing-supply			93.6			72.1		88.2
Other			91.9			44.7		98.1
Total			87.8	%		73.3		84.0
Sub-Saharan Africa/Europe fleet:
Deepwater			86.3	%		79.3		83.1
Towing-supply			75.3			67.6		77.9
Other			78.1			70.2		89.2
Total			79.5	%		71.8		83.3
Worldwide fleet:
Deepwater			83.8	%		81.2		81.9
Towing-supply			78.4			60.8		76.6
Other			76.9			71.5		87.3
Total			79.8	%		68.8		80.8


		Quarter Ended June 30,					Quarter Ended March 31,
		2014			2013		2014
AVERAGE VESSEL DAY RATES:
Americas fleet:
Deepwater	$		31,175			29,786		31,066
Towing-supply			16,559			15,161		16,220
Other			8,856			6,965		7,868
Total	$		22,443			18,977		21,718
Asia/Pacific fleet:
Deepwater	$		41,948			39,291		39,072
Towing-supply			13,017			13,022		12,383
Other			10,658			10,353		10,661
Total	$		22,066			20,749		21,550
Middle East/North Africa fleet:
Deepwater	$		25,081			21,202		20,524
Towing-supply			13,366			12,567		13,000
Other			4,742			4,750		3,912
Total	$		15,502			14,316		14,258
Sub-Saharan Africa/Europe fleet:
Deepwater	$		30,414			27,514		29,158
Towing-supply			16,867			15,386		16,542
Other			5,562			4,883		5,392
Total	$		17,179			15,993		15,917
Worldwide fleet:
Deepwater	$		31,061			28,572		29,730
Towing-supply			15,261			14,338		14,982
Other			6,306			5,496		5,905
Total	$		18,701			16,976		17,525

The day-based utilization percentages, average day rates and the number of the company’s new vessels (defined as vessels acquired or constructed since calendar year 2000 as part of its new build and acquisition program) by vessel class and in total for the quarters ended June 30, 2014 and 2013 and the quarter ended March 31, 2014, were as follows:

		Quarter Ended June 30,					Quarter Ended March 31,
		2014			2013		2014
UTILIZATION:
Deepwater vessels:
PSVs			86.8	%		84.0		86.1
AHTS vessels			83.5			95.9		73.9
Towing-supply			84.9			81.7		84.4
Other			76.9			73.3		91.8
Total			83.7	%		81.2		86.0
AVERAGE VESSEL DAY RATES:
Deepwater vessels:
PSVs	$		30,802			28,689		29,735
AHTS vessels			34,116			29,561		31,158
Towing-supply			15,519			14,595		15,126
Other			6,706			5,843		6,126
Total	$		19,627			17,955		18,287
AVERAGE VESSEL COUNT:
Deepwater vessels:
PSVs			76			69		76
AHTS vessels			12			11		12
Towing-supply			105			103		105
Other			52			53		52
Total			245			236		245

The company’s average number of vessels by class and geographic distribution for the quarters ended June 30, 2014 and 2013 and for the quarter ended March 31, 2014:


	Quarter Ended June 30,				Quarter Ended March 31,
	2014		2013		2014
Americas fleet:
Deepwater		33		27		32
Towing-supply		31		46		30
Other		15		14		14
Total		79		87		76
Less stacked vessels		8		25		10
Active vessels		71		62		66
Asia/Pacific fleet:
Deepwater		9		7		8
Towing-supply		14		24		14
Other		1		1		1
Total		24		32		23
Less stacked vessels		--		6		--
Active vessels		24		26		23
Middle East/North Africa fleet:
Deepwater		12		9		12
Towing-supply		31		30		31
Other		2		4		2
Total		45		43		45
Less stacked vessels		1		3		1
Active vessels		44		40		44
Sub-Saharan Africa/Europe fleet:
Deepwater		38		44		39
Towing-supply		48		58		52
Other		47		48		49
Total		133		150		140
Less stacked vessels		4		10		5
Active vessels		129		140		135
Active owned or chartered vessels		268		268		268
Stacked vessels		13		44		16
Total owned or chartered vessels		281		312		284
Vessels withdrawn from service		--		1		--
Joint-venture and other		11		10		11
Total		292		323		295

Note (B): Included in total owned or chartered vessels at June 30, 2014 and 2013 and at March 31, 2014, were 11, 41, and 15 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, and ROVs as of June 30, 2014:


(In thousands)	Number of Vessels/ROVs		Shipyard Location	Delivery Dates	Total Cost			Amount Invested 6/30/14		Remaining Balance 6/30/14
Towing-supply:
7,145 BHP AHTS		6	International	1/2015 - 2/2016		$	116,143		55,909		60,234
Deepwater:
246-foot PSV		2	International	8/2014
261-foot PSV		6	International	9/2015 – 6/2016
264-foot PSV		1	United States	10/2014
268-foot PSV		2	International	2/2015, 5/2015
275-foot PSV (A)		10	International	9/2014 – 7/2015
292-foot PSV		1	International	5/2016
300-foot PSV		2	United States	9/2015, 2/2016
310-foot PSV		2	United States	11/2015, 2/2016
Total Deepwater PSVs		26					843,784		230,331		613,453
Other:
Fast supply boat		1	International	---			8,014		8,014		---
Total vessel commitments		33				$	967,941		294,254		673,687
Total ROV commitments		2	United States	11/2014		$	14,980		3,694		11,286
Total commitments		35				$	982,921		297,948		684,973

(A)	Two different international shipyards are constructing six and four 275-foot PSVs, respectively.

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


		Quarter Period Ended
Vessel class and type		09/14		12/14		03/15		06/15		09/15		Thereafter
Deepwater PSVs			5		4		3		2		3		9
Towing-supply vessels			---		---		1		1		1		3
Other			---		---		---		---		---		1
Total vessel commitments			5		4		4		3		4		13
Total ROV commitments			---		2		---		---		---		---
Total commitments			5		6		4		3		4		13

(In thousands)
Expected quarterly cash outlay	$		130,207		135,523		124,933		120,099		53,749		120,462	(B)

(B)	The $120,462 of ‘Thereafter’ vessel construction obligations are expected to be paid as follows: $70,034 during fiscal 2016 and $50,428 during fiscal 2017.