tdw-ex991

____________________________________________________________________________________________________________________________________________

TIDEWATER INC. ● 6002 Rogerdale Road, Suite 600 ● Houston, TX 77072 ● Telephone (713) 470-5300 ● Fax (888) 909-0946

HOUSTON, May 6, 2019 — Tidewater Inc. (NYSE:TDW) announced today revenue for the three-months ended March 31, 2019, of $122.1 million and a net loss for the same period of $21.7 million (or $0.58 per common share). Excluding certain costs outlined below, net loss for the three-months ended March 31, 2019 was $18.0 million (or $0.49 per common share).

John T. Rynd, Tidewater’s President and Chief Executive Officer, commented, “March 31 marked the first full quarter with Tidewater and GulfMark operating as a combined company and I’m pleased that the benefits of this merger are immediately evident. With a larger vessel fleet, revenues were up 33% as compared to the same period in 2018 and up 11% from the quarter ended December 31, 2018. Demonstrating the value of leveraging Tidewater’s existing global platform and our team’s progress towards meeting our merger synergy targets, G&A continued its downward trend during the quarter, reaching the same level as the quarter ended March 31, 2018. We continue to make progress in improving our shore base cost structure, and we are now positioning ourselves to exit 2019 with an annual G&A run rate of $87 million.

Capital discipline, both working capital discipline and capital expenditure discipline, is key to exceeding the return on capital objectives we have set for ourselves. The entire team is focused on obtaining these goals and our long-term compensation incentives are driven by return on capital targets. Discipline on the capital tied up in our fleet in lay-up is also part of that focus and considerable progress has been made towards meeting our ambitious goal of selling or recycling 40 additional vessels by the end of the year, with 16 vessel dispositions already completed in the first quarter and more in process.

There are strong indications that E&P spending offshore will increase this year, driving steadily improving drilling activity and the availability of OSVs in several key markets within which we have a large presence, such as the North Sea and West Africa, has shown signs of tightening as we enter the seasonally more active summer season. With strong OSV sector leadership positions in almost every market in the world, Tidewater is best-positioned to benefit from the upside as the market continues improves through 2019.”

Included in the $21.7 million ($0.58 per common share) net loss for the three months ended March 31, 2019 were the following costs were general and administrative expenses for severance and similar expenses related to integrating Tidewater and GulfMark operations of $3.7 million ($0.10 per common share).

Common shares, New Creditor Warrants, GulfMark Creditor Warrants, and the sum of common shares, New Creditor Warrants and GulfMark Creditor Warrants outstanding at March 31, 2019 were 37,381,954, 2,070,463, 2,046,795 and 41,499,212, respectively. New Creditor Warrants and GulfMark Creditor Warrants are each exercisable to acquire one common share at strike prices of $0.001 and $0.01, respectively.

Tidewater will hold a conference call to discuss results for the three months ended March 31, 2019 on Tuesday, May 7, 2019 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 May 7, 2019, and will continue until 11:59 p.m. Central Time on May 9, 2019. 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 48556943.

A simultaneous webcast of the conference call will be available online at the Tidewater Inc. website, www.tdw.com. The online replay will be available until June 7, 2019.

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 over 60 years of experience supporting offshore energy exploration and production activities worldwide.

	Three Months			Three Months
	Ended			Ended
	March 31, 2019			March 31, 2018
Revenues:
Vessel revenues	$	119,662			87,494
Other operating revenues		2,487			3,999
Total revenues		122,149			91,493
Costs and expenses:
Vessel operating costs		82,203			61,364
Costs of other operating revenues		764			2,474
General and administrative (A)		27,140			23,565
Depreciation and amortization		22,932			12,017
Gain on asset dispositions, net		(1,270	)		(1,919	)
Long-lived asset impairments		—			6,186
Total operating costs and expenses		131,769			103,687
Operating loss		(9,620	)		(12,194	)
Other income (expense):
Foreign exchange loss		(508	)		(348	)
Equity in net losses of unconsolidated companies		(62	)		(15,439	)
Interest income and other, net		2,470			(128	)
Interest and other debt costs, net		(7,736	)		(7,599	)
Total other income (expense)		(5,836	)		(23,514	)
Loss before income taxes		(15,456	)		(35,708	)
Income tax expense		5,830			3,321
Net loss	$	(21,286	)		(39,029	)
Less: Net income attributable to noncontrolling interests		445			143
Net loss attributable to Tidewater Inc.	$	(21,731	)		(39,172	)
Basic loss per common share		(0.58	)		(1.67	)
Diluted loss per common share		(0.58	)		(1.67	)
Weighted average common shares outstanding		37,179			23,425
Dilutive effect of stock options and restricted stock		—			—
Adjusted weighted average common shares		37,179			23,425

Note (A): General and administrative expenses for the three months ended March 31, 2019 and March 31, 2018, included stock-based compensation of $5.6 million and $3.0 million, respectively. In addition, general and administrative costs for the three months ended March 31, 2019 include $3.7 million of severance and similar costs related to integrating Tidewater and GulfMark operations subsequent to the Merger Date.

	March 31,			December 31,
ASSETS	2019			2018
Current assets:
Cash and cash equivalents	$	391,060			371,791
Restricted cash		6,975			25,953
Trade and other receivables, net		112,853			111,266
Due from affiliates		119,049			132,951
Marine operating supplies		29,337			29,505
Other current assets		14,844			11,836
Total current assets		674,118			683,302
Investments in, at equity, and advances to unconsolidated companies		774			1,039
Properties and equipment, net		1,065,297			1,089,857
Deferred drydocking and survey costs		30,602			22,215
Other assets		38,507			31,326
Total assets	$	1,809,298			1,827,739

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	29,739			31,939
Accrued costs and expenses		56,025			61,784
Due to affiliates		40,245			34,972
Current portion of long-term debt		9,957			8,568
Other current liabilities		20,115			21,092
Total current liabilities		156,081			158,355
Long-term debt		427,436			430,436
Other liabilities		98,096			94,025

Contingencies

Equity:
Common stock of $0.001 par value, 125,000,000 shares authorized, 37,381,954 and 36,978,280 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively		37			37
Additional paid-in capital		1,356,436			1,352,388
Accumulated deficit		(232,514	)		(210,783	)
Accumulated other comprehensive income		2,194			2,194
Total stockholders’ equity		1,126,153			1,143,836
Noncontrolling interests		1,532			1,087
Total equity		1,127,685			1,144,923
Total liabilities and equity	$	1,809,298			1,827,739

	Three Months Ended			Three Months Ended
	March 31, 2019			March 31, 2018
Operating activities:
Net loss	$	(21,286	)		(39,029	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		19,034			11,380
Amortization of deferred drydocking and survey costs		3,898			638
Amortization of debt premium and discounts		(505	)		(443	)
Provision for deferred income taxes		169			—
Gain on asset dispositions, net		(1,270	)		(1,919	)
Long-lived asset impairments		—			6,186
Changes in investments in, at equity, and advances to unconsolidated companies		265			15,713
Compensation expense - stock-based		5,627			2,956
Changes in assets and liabilities, net:
Trade and other receivables		(2,204	)		(1,662	)
Changes in due to/from affiliates, net		19,175			1,083
Accounts payable		(2,200	)		7,284
Accrued costs and expenses		(5,626	)		845
Cash paid for deferred drydocking and survey costs		(12,285	)		(8,860	)
Other, net		(5,949	)		(156	)
Net cash used in operating activities		(3,157	)		(5,984	)
Cash flows from investing activities:
Proceeds from sales of assets		9,651			9,492
Additions to properties and equipment		(3,116	)		(1,677	)
Net cash provided by investing activities		6,535			7,815
Cash flows from financing activities:
Principal payment on long-term debt		(1,509	)		(1,471	)
Payments to General Unsecured Creditors		—			(8,377	)
Taxes on share-based awards		(1,578	)		—
Other		—			1
Net cash used in financing activities		(3,087	)		(9,847	)
Net change in cash, cash equivalents and restricted cash		291			(8,016	)
Cash, cash equivalents and restricted cash at beginning of period		397,744			453,335
Cash, cash equivalents and restricted cash at end of period	$	398,035			445,319
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest, net of amounts capitalized	$	8,319			8,152
Income taxes	$	4,415			6,429

(In thousands)	Common stock		Additional paid-in capital			Accumulated deficit			Accumulated other comprehensive income (loss)			Non controlling interest		Total
Balance at December 31, 2018	$	37		1,352,388			(210,783	)		2,194			1,087		1,144,923
Total comprehensive loss		—		—			(21,731	)		—			445		(21,286	)
Issuance of common stock from exercise of warrants		—		1			—			—			—		1
Amortization/cancellation of restricted stock units		—		4,047			—			—			—		4,047
Balance at March 31, 2019	$	37		1,356,436			(232,514	)		2,194			1,532		1,127,685

Balance at December 31, 2017	$	22		1,059,120			(39,266	)		(147	)		2,215		1,021,944
Total comprehensive loss		—		—			(39,172	)		(299	)		143		(39,328	)
Stock option expense		—		(98	)		—			—			—		(98	)
Issuance of common stock		2		—			—			—			—		2
Amortization of restricted stock units		—		2,961			—			—			—		2,961
Balance at March 31, 2018		24		1,061,983			(78,438	)		(446	)		2,358		985,481

The company’s vessel revenues and vessel operating costs and the related percentage of total vessel revenues, were as follows:

	Quarter Ended					Quarter Ended
	March 31, 2019					March 31, 2018
(In thousands)			%						%
Vessel revenues:
Americas	$	35,279		29	%		26,081			30	%
Middle East/Asia Pacific		20,456		17	%		18,388			21	%
Europe/Mediterranean Sea		28,558		24	%		9,623			11	%
West Africa		35,369		30	%		33,402			38	%
Total vessel revenues	$	119,662		100	%		87,494			100	%
Vessel operating costs:
Crew costs	$	48,145		40	%		34,224			39	%
Repair and maintenance		9,701		8	%		7,704			9	%
Insurance and loss reserves		2,178		2	%		(1,071	)		(1	%)
Fuel, lube and supplies		9,345		8	%		9,012			10	%
Other		12,834		11	%		11,495			13	%
Total vessel operating costs		82,203		69	%		61,364			70	%
Vessel operating margin (B)		37,459		31	%		26,130			30	%

Note (B): Vessel operating margin can be recalculated by adjusting vessel operating profit (loss) for general and administrative expenses and depreciation and amortization expenses.

The company’s operating loss and other components of loss before income taxes and its related percentage of total revenues, were as follows:

	Quarter Ended						Quarter Ended
	March 31, 2019						March 31, 2018
(In thousands)				%						%
Vessel operating profit (loss):
Americas	$	(1,030	)		(1	%)		4,911			5	%
Middle East/Asia Pacific		(1,162	)		(1	%)		(2,253	)		(2	%)
Europe/Mediterranean Sea		(3,317	)		(3	%)		(3,554	)		(4	%)
West Africa		8,115			7	%		(1,753	)		(2	%)
Other operating profit		1,704			1	%		1,506			2	%
		4,310			3	%		(1,143	)		(1	%)
Corporate expenses (C)		(15,200	)		(12	%)		(6,784	)		(7	%)
Gain (loss) on asset dispositions, net		1,270			1	%		1,919			2	%
Long-lived asset impairments		—			—			(6,186	)		(7	%)
Operating loss		(9,620	)		(8	%)		(12,194	)		(13	%)

Note (C): The company incurred integration costs related to the combination with GulfMark during the three months ended March 31, 2019 of $3.7 million. General and administrative expenses for the quarter ended March 31, 2019 and March 31, 2018, included stock-based compensation of $5.6 million and $3.0 million, respectively.


		Three Months Ended

		March 31,			December 31,			September 30,			June 30,			March 31,
		2019			2018			2018			2018			2018
Revenues:
Vessel revenues	$		119,662			108,527			97,011			104,174			87,494
Other operating revenues			2,487			1,707			2,181			1,427			3,999
Total revenues			122,149			110,234			99,192			105,601			91,493
Costs and expenses:
Vessel operating costs			82,203			74,967			65,237			68,012			61,364
Costs of other operating revenues			764			733			1,681			642			2,474
General and administrative (D)			27,140			36,487			25,546			24,425			23,565
Depreciation and amortization			22,932			20,101			13,390			12,785			12,017
Gain on asset dispositions, net			(1,270	)		(8,938	)		1,571			(1,338	)		(1,919	)
Impairment of due from affiliate			—			20,083			—			—			—
Asset impairments			—			36,878			16,853			1,215			6,186
Total operating costs and expenses			131,769			180,311			124,278			105,741			103,687
Operating loss			(9,620	)		(70,077	)		(25,086	)		(140	)		(12,194	)
Other income (expense):
Foreign exchange gain (loss)			(508	)		1,455			1			(1,002	)		(348	)
Equity in net earnings (losses) of unconsolidated companies			(62	)		(3,871	)		56			390			(15,439	)
Interest income and other			2,470			5,799			2,709			2,914			(128	)
Loss on debt extinguishment			—			(8,119	)		—			—			—
Interest and other debt costs			(7,736	)		(7,708	)		(7,585	)		(7,547	)		(7,599	)
Total other income (expense)			(5,836	)		(12,444	)		(4,819	)		(5,245	)		(23,514	)
Loss before income taxes			(15,456	)		(82,521	)		(28,905	)		(5,385	)		(35,708	)
Income tax expense			5,830			7,856			1,278			5,797			3,321
Net loss	$		(21,286	)		(90,377	)		(31,183	)		(11,182	)		(39,029	)
Less: Net income (loss) attributable to noncontrolling interests			445			132			(287	)		(242	)		143
Net loss attributable to Tidewater Inc.	$		(21,731	)		(90,509	)		(30,896	)		(10,940	)		(39,172	)
Basic loss per common share	$		(0.58	)		(2.83	)		(1.16	)		(0.44	)		(1.67	)
Diluted loss per common share	$		(0.58	)		(2.83	)		(1.16	)		(0.44	)		(1.67	)
Weighted average common shares outstanding (E)			37,178,580			31,974,802			26,614,507			24,654,220			23,424,943
Dilutive effect of stock options and restricted stock			—			—			—			—			—
Adjusted weighted average common shares			37,178,580			31,974,802			26,614,507			24,654,220			23,424,943

Vessel operating margin	$		37,459			33,560			31,774			36,162			26,130

Note (D): Restructuring and merger-related items:
Professional services costs included in general and administrative expenses related to the business combination with GulfMark	$		88			4,465			3,036			1,547			—
Integration related costs related to the business combination with GulfMark			3,651			—			—			—			—
Total	$		3,739			4,465			3,036			1,547			—

Note (E):
Shares issuable upon the exercise of New Creditor Warrants held by U.S. citizens included in weighted average shares outstanding			—			2,547			300,646			—			108,044

Total shares outstanding including warrants
Common shares outstanding			37,381,954			36,978,280			26,815,991			26,085,274			23,988,075
New Creditor Warrants (strike price $0.001 per common share)			2,070,463			2,220,857			3,512,416			3,924,441			6,021,696
GulfMark Creditor Warrants (strike price $0.01 per common share)			2,046,795			2,189,709			—			—			—
Total			41,499,212			41,388,846			30,328,407			30,009,715			30,009,771


		March 31,			December 31,			September 30,			June 30,			March 31,
ASSETS		2019			2018			2018			2018			2018
Current assets:
Cash and cash equivalents	$		391,060			371,791			461,088			459,286			442,472
Restricted cash			6,975			25,953			7,466			5,213			2,847
Trade and other receivables, net (F)			112,853			111,266			88,013			96,630			115,754
Due from affiliates			119,049			132,951			174,349			197,059			207,919
Marine operating supplies			29,337			29,505			27,591			28,930			28,896
Other current assets			14,844			11,836			9,880			10,213			18,181
Total current assets			674,118			683,302			768,387			797,331			816,069
Investments in, at equity, and advances to unconsolidated companies			774			1,039			1,129			1,335			13,503
Net properties and equipment			1,065,297			1,089,857			790,055			817,140			827,678
Deferred drydocking and survey costs			30,602			22,215			16,053			14,372			11,430
Other assets			38,507			31,326			28,700			26,779			30,783
Total assets	$		1,809,298			1,827,739			1,604,324			1,656,957			1,699,463

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable (F)	$		29,739			31,939			30,571			30,561			45,781
Accrued costs and expenses			56,025			61,784			46,060			49,312			56,408
Due to affiliates			40,245			34,972			48,064			62,353			78,135
Current portion of long-term debt			9,957			8,568			7,671			6,290			5,215
Other current liabilities			20,115			21,092			21,341			20,605			11,678
Total current liabilities			156,081			158,355			153,707			169,121			197,217
Long-term debt			427,436			430,436			435,301			438,559			442,729
Other liabilities and deferred credits			98,096			94,025			71,408			73,751			74,036

Contingencies

Equity:
Common stock			37			37			27			26			24
Additional paid-in capital			1,356,436			1,352,388			1,063,603			1,064,039			1,061,983
Accumulated deficit			(232,514	)		(210,783	)		(120,274	)		(89,378	)		(78,438	)
Accumulated other comprehensive income (loss)			2,194			2,194			(403	)		(403	)		(446	)
Total stockholders’ equity			1,126,153			1,143,836			942,953			974,284			983,123
Noncontrolling interests			1,532			1,087			955			1,242			2,358
Total equity			1,127,685			1,144,923			943,908			975,526			985,481
Total liabilities and equity	$		1,809,298			1,827,739			1,604,324			1,656,957			1,699,463


Supplemental Information
Due from related parties, net of due to related parties:
Sonatide (Angola)	$		62,591			79,829			102,512			106,084			129,784
DTDW (Nigeria)			16,213			18,150			23,773			28,622			25,184
Total	$		78,804			97,979			126,285			134,706			154,968

Note (F): Included in Trade and other receivables, net, for the quarter ended March 31, 2018 is $37,761 of amounts due from our DTDW (Nigeria) joint venture. Included in accounts payable for the quarter ended March 31, 2018 is $12,577 of amounts due to our DTDW (Nigeria) joint venture.


		Three Months Ended
		March 31,		December 31,			September 30,		June 30,		March 31,
		2019		2018			2018		2018		2018
VESSEL REVENUE BY VESSEL CLASS (In thousands):

Americas fleet:
Deepwater	$		25,214		21,412			19,513		22,661		16,205
Towing-supply			8,576		8,283			6,417		7,560		6,846
Other			1,489		2,118			2,109		2,380		3,030
Total	$		35,279		31,813			28,039		32,601		26,081
Middle East/Asia Pacific fleet:
Deepwater	$		10,502		8,705			7,607		9,603		9,564
Towing-supply			9,954		10,959			12,156		12,783		8,824
Other			-		(190	)		164		20		—
Total	$		20,456		19,474			19,927		22,406		18,388
Europe/Mediterranean Sea fleet:
Deepwater	$		27,577		19,876			11,643		12,596		9,020
Towing-supply			981		841			923		761		603
Total	$		28,558		20,717			12,566		13,357		9,623
West Africa fleet:
Deepwater	$		15,949		15,287			15,101		14,314		13,938
Towing-supply			15,184		16,807			17,805		17,321		16,139
Other			4,236		4,429			3,573		4,175		3,325
Total	$		35,369		36,523			36,479		35,810		33,402
Worldwide fleet:
Deepwater	$		79,242		65,278			53,864		59,174		48,727
Towing-supply			34,695		36,890			37,301		38,425		32,412
Other			5,725		6,359			5,846		6,575		6,355
Total	$		119,662		108,527			97,011		104,174		87,494


	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2019			2018			2018			2018			2018
AVERAGE NUMBER OF VESSELS (G):

Americas fleet:
Deepwater		37			35			26			25			26
Towing-supply		27			20			15			15			15
Other		7			7			6			6			6
Total		71			62			47			46			47
Stacked vessels		(32	)		(27	)		(20	)		(19	)		(20	)
Active vessels		39			35			27			27			27
Middle East/Asia Pacific fleet:
Deepwater		24			20			17			18			19
Towing-supply		27			28			32			35			37
Other		—			—			—			—			—
Total		51			48			49			53			56
Stacked vessels		(10	)		(11	)		(9	)		(12	)		(15	)
Active vessels		41			37			40			41			41
Europe/Mediterranean Sea fleet:
Deepwater		45			31			18			18			17
Towing-supply		3			4			4			4			4
Other		—			—			—			—			—
Total		48			35			22			22			21
Stacked vessels		(14	)		(10	)		(4	)		(4	)		(5	)
Active vessels		34			25			18			18			16
West Africa fleet:
Deepwater		30			28			27			26			27
Towing-supply		31			31			31			31			35
Other		22			23			25			27			31
Total		83			82			83			84			93
Stacked vessels		(29	)		(29	)		(28	)		(29	)		(39	)
Active vessels		54			53			55			55			54
Worldwide fleet:
Deepwater		136			114			88			87			89
Towing-supply		88			83			82			85			91
Other		29			30			31			33			37
Total		253			227			201			205			217
Stacked vessels		(85	)		(77	)		(61	)		(64	)		(79	)
Active vessels		168			150			140			141			138

Total active		168			150			140			141			138
Total stacked		85			77			61			64			79
Total joint venture and other vessels		4			5			7			8			8
Total		257			232			208			213			225

Note (G): Included in total owned or chartered vessels at March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018, were 71, 92, 62, 66 and 70 vessels, respectively, which were stacked by the company. These vessels were considered to be in service and are included in the calculation of our total fleet utilization statistics. Included in total joint venture and other at March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018, were 1, 2, 2, 5 and 4 vessels, respectively, which were stacked by the company.


	Three Months Ended
	March 31,		December 31,		September 30,		June 30,		March 31,
	2019		2018		2018		2018		2018
AVAILABLE DAYS - TOTAL FLEET:

Americas fleet:
Deepwater		3,332		3,271		2,392		2,275		2,309
Towing-supply		2,426		1,806		1,422		1,399		1,350
Other		619		644		552		546		540
Total		6,377		5,721		4,366		4,220		4,199
Middle East/Asia Pacific fleet:
Deepwater		2,160		1,840		1,534		1,611		1,738
Towing-supply		2,457		2,588		2,950		3,203		3,348
Other		—		—		—		3		—
Total		4,617		4,428		4,484		4,817		5,086
Europe/Mediterranean Sea fleet:
Deepwater		4,040		2,806		1,649		1,638		1,527
Towing-supply		294		368		368		364		360
Total		4,334		3,174		2,017		2,002		1,887
West Africa fleet:
Deepwater		2,668		2,606		2,491		2,393		2,470
Towing-supply		2,790		2,852		2,852		2,821		3,123
Other		1,980		2,122		2,297		2,417		2,745
Total		7,438		7,580		7,640		7,631		8,338
Worldwide fleet:
Deepwater		12,200		10,523		8,066		7,917		8,044
Towing-supply		7,967		7,614		7,592		7,787		8,181
Other		2,599		2,766		2,849		2,966		3,285
Total		22,766		20,903		18,507		18,670		19,510


	Three Months Ended
	March 31,		December 31,		September 30,		June 30,		March 31,
	2019		2018		2018		2018		2018
OUT-OF-SERVICE - STACKED DAYS:

Americas fleet:
Deepwater		992		1,288		858		819		898
Towing-supply		1,467		932		736		728		720
Other		380		296		276		182		180
Total		2,839		2,516		1,870		1,729		1,798
Middle East/Asia Pacific fleet:
Deepwater		617		572		338		364		478
Towing-supply		270		391		508		780		873
Other		—		—		—		—		—
Total		887		963		846		1,144		1,351
Europe/Mediterranean Sea fleet:
Deepwater		1,122		736		170		91		167
Towing-supply		114		184		184		243		270
Total		1,236		920		354		334		437
West Africa fleet:
Deepwater		630		625		552		590		744
Towing-supply		1,486		1,361		1,196		1,183		1,463
Other		540		681		799		878		1,305
Total		2,656		2,667		2,547		2,652		3,512
Worldwide fleet:
Deepwater		3,361		3,221		1,918		1,864		2,287
Towing-supply		3,337		2,868		2,624		2,934		3,326
Other		920		977		1,075		1,060		1,485
Total		7,618		7,066		5,617		5,859		7,098


	Three Months Ended
	March 31,		December 31,		September 30,		June 30,		March 31,
	2019		2018		2018		2018		2018
AVAILABLE DAYS - ACTIVE FLEET: (H)

Americas fleet:
Deepwater		2,340		1,983		1,534		1,456		1,411
Towing-supply		959		874		686		671		630
Other		239		348		276		364		360
Total		3,538		3,205		2,496		2,491		2,401
Middle East/Asia Pacific fleet:
Deepwater		1,543		1,268		1,196		1,247		1,260
Towing-supply		2,187		2,197		2,442		2,423		2,475
Other		—		—		—		3		—
Total		3,730		3,465		3,638		3,673		3,735
Europe/Mediterranean Sea fleet:
Deepwater		2,918		2,070		1,479		1,547		1,360
Towing-supply		180		184		184		121		90
Total		3,098		2,254		1,663		1,668		1,450
West Africa fleet:
Deepwater		2,038		1,981		1,939		1,803		1,726
Towing-supply		1,304		1,491		1,656		1,638		1,660
Other		1,440		1,441		1,498		1,539		1,440
Total		4,782		4,913		5,093		4,979		4,826
Worldwide fleet:
Deepwater		8,839		7,302		6,148		6,053		5,757
Towing-supply		4,630		4,746		4,968		4,853		4,855
Other		1,679		1,789		1,774		1,906		1,800
Total		15,148		13,837		12,890		12,811		12,412

Note (H): Available Days - Active Fleet equals Available Days - Total Fleet less Out-Of-Service - Stacked Days.


	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2019			2018			2018			2018			2018
UTILIZATION - TOTAL FLEET: (I)

Americas fleet:
Deepwater		61.9	%		49.9	%		50.6	%		54.8	%		42.2	%
Towing-supply		35.4			42.8			40.6			37.7			35.7
Other		26.3			35.3			41.2			48.3			61.9
Total		48.4	%		46.0	%		46.1	%		48.3	%		42.7	%
Middle East/Asia Pacific fleet:
Deepwater		57.8	%		57.6	%		59.0	%		64.2	%		54.4	%
Towing-supply		64.8			62.3			64.2			60.2			40.0
Other		—			—			—			100.0			—
Total		61.5	%		60.3	%		62.4	%		61.6	%		44.9	%
Europe/Mediterranean Sea fleet:
Deepwater		60.1	%		66.2	%		72.0	%		79.5	%		64.7	%
Towing-supply		59.9			39.0			44.3			29.0			25.0
Total		60.1	%		63.1	%		67.0	%		70.3	%		57.1	%
West Africa fleet:
Deepwater		52.9	%		58.5	%		61.9	%		60.2	%		52.3	%
Towing-supply		40.0			46.5			48.0			47.0			39.0
Other		57.9			57.3			44.2			49.2			36.6
Total		49.4	%		53.6	%		51.4	%		51.9	%		42.2	%
Worldwide fleet:
Deepwater		58.6	%		57.7	%		60.0	%		63.5	%		52.2	%
Towing-supply		47.0			50.6			52.7			49.9			38.3
Other		50.4			52.2			43.6			49.1			40.8
Total		53.6	%		54.4	%		54.5	%		55.5	%		44.4	%

Note (I): Utilization Total Fleet equals Days Worked / Available Days Total Fleet.


	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2019			2018			2018			2018			2018
UTILIZATION - ACTIVE FLEET: (J)

Americas fleet:
Deepwater		88.2	%		82.3	%		78.8	%		85.7	%		69.1	%
Towing-supply		89.5			88.4			84.2			78.5			76.6
Other		68.2			65.4			82.3			72.4			92.9
Total		87.2	%		82.1	%		80.7	%		81.8	%		74.6	%
Middle East/Asia Pacific fleet:
Deepwater		80.9	%		83.6	%		75.6	%		82.9	%		75.0	%
Towing-supply		72.8			73.3			77.5			79.6			54.1
Other		—			—			—			100.0			—
Total		76.1	%		77.1	%		76.9	%		80.8	%		61.2	%
Europe/Mediterranean Sea fleet:
Deepwater		83.2	%		89.8	%		80.3	%		84.2	%		72.6	%
Towing-supply		97.8			78.0			88.7			87.4			100.0
Total		84.1	%		88.8	%		81.2	%		84.4	%		74.3	%
West Africa fleet:
Deepwater		69.2	%		77.0	%		79.5	%		79.9	%		74.8	%
Towing-supply		85.6			88.9			82.6			81.0			73.4
Other		79.7			84.3			67.8			77.3			69.9
Total		76.8	%		82.8	%		77.1	%		79.5	%		72.8	%
Worldwide fleet:
Deepwater		80.9	%		83.2	%		78.8	%		83.0	%		72.9	%
Towing-supply		80.8			81.2			80.5			80.1			64.5
Other		78.0			80.7			70.1			76.4			74.5
Total		80.6	%		82.2	%		78.3	%		80.9	%		69.8	%

Note (J): Utilization Active Fleet equals Days Worked / Available Days - Active Fleet.


		Three Months Ended
		March 31,		December 31,		September 30,		June 30,		March 31,
		2019		2018		2018		2018		2018
AVERAGE VESSEL DAY RATES: (K)

Americas fleet:
Deepwater	$		12,217		13,127		16,138		18,162		16,626
Towing-supply			9,993		10,722		11,115		14,349		14,191
Other			9,135		9,311		9,281		9,029		9,061
Total	$		11,436		12,091		13,924		15,995		14,558
Middle East/Asia Pacific fleet:
Deepwater	$		8,417		8,215		8,411		9,287		10,122
Towing-supply			6,255		6,801		6,422		6,627		6,589
Other			—		—		—		6,122		—
Total	$		7,205		7,291		7,123		7,554		8,051
Europe/Mediterranean Sea fleet:
Deepwater	$		11,356		10,696		9,802		9,676		9,132
Towing-supply			5,566		5,867		5,658		7,195		6,695
Total	$		10,964		10,350		9,302		9,489		8,928
West Africa fleet:
Deepwater	$		11,307		10,023		9,793		9,940		10,795
Towing-supply			13,601		12,675		13,019		13,054		13,245
Other			3,693		3,645		3,515		3,508		3,306
Total	$		9,627		8,982		9,291		9,050		9,501
Worldwide fleet:
Deepwater	$		11,082		10,747		11,121		11,779		11,606
Towing-supply			9,271		9,574		9,323		9,882		10,355
Other			4,370		4,407		4,701		4,513		4,742
Total	$		9,806		9,545		9,616		10,047		10,093


		Three Months Ended
		March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands)		2019			2018			2018			2018			2018
Americas
Vessel revenues	$		35,279			31,813			28,039			32,601			26,081

Vessel operating costs:
Crew costs	$		17,099			15,596			12,169			11,158			9,093
Routine repairs and maintenance			3,152			2,443			2,017			1,471			1,917
Major repairs			468			(5	)		554			58			(187	)
Insurance and loss reserves			741			(38	)		(488	)		1,031			(551	)
Fuel, lube and supplies			2,445			2,350			2,081			1,792			1,618
Other			2,771			2,523			1,787			2,790			406
Total vessel operating costs	$		26,676			22,869			18,120			18,300			12,296

Vessel operating margin ($)	$		8,603			8,944			9,919			14,301			13,785
Vessel operating margin (%)			24.4	%		28.1	%		35.4	%		43.9	%		52.9	%

Americas - Select operating statistics
Average vessels - Total fleet			71			62			47			46			47
Utilization - Total fleet			48.4	%		46.0	%		46.1	%		48.3	%		42.7	%

Average vessels - Active fleet			39			35			27			27			27
Utilization - Active fleet			87.2	%		82.1	%		80.7	%		81.8	%		74.6	%

Average day rates	$		11,436			12,091			13,924			15,995			14,558

Vessels commencing drydocks		6			3			11				2			7

Major repairs expense and deferred drydocking and survey costs:
Major repairs expense	$		468			(5	)		554			58			(187	)
Cash paid for deferred drydocking and survey costs	$		2,178			3,406			1,099			1,097			2,775
	$		2,646			3,401			1,653			1,155			2,588

Deferred drydocking and survey costs - beginning balance	$		7,245			4,638			4,108			3,383			707
Cash paid for deferred drydocking and survey costs	$		2,178			3,406			1,099			1,097			2,775
Amortization of deferred drydocking and survey costs	$		(960	)		(799	)		(569	)		(389	)		(90	)
Net vessel transfers in/out of the segment	$		—			—			—			17			(9	)
Deferred drydocking and survey costs - ending balance	$		8,463			7,245			4,638			4,108			3,383


		Three Months Ended
		March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands)		2019			2018			2018			2018			2018
Middle East/Asia Pacific
Vessel revenues	$		20,456			19,474			19,927			22,406			18,388

Vessel operating costs:
Crew costs	$		8,627			8,372			8,412			8,596			8,108
Routine repairs and maintenance			1,581			2,377			1,898			1,558			1,209
Major repairs			—			—			(39	)		36			254
Insurance and loss reserves			589			154			(458	)		383			(150	)
Fuel, lube and supplies			2,335			2,402			1,394			2,221			2,339
Other			1,733			1,947			2,203			2,578			2,742
Total vessel operating costs	$		14,865			15,252			13,410			15,372			14,502

Vessel operating margin ($)	$		5,591			4,222			6,517			7,034			3,886
Vessel operating margin (%)			27.3	%		21.7	%		32.7	%		31.4	%		21.1	%

Middle East/Asia Pacific - Select operating statistics
Average vessels - Total fleet			51			48			49			53			56
Utilization - Total fleet			61.5	%		60.3	%		62.4	%		61.6	%		44.9	%

Average vessels - Active fleet			41			37			40			41			41
Utilization - Active fleet			76.1	%		77.1	%		76.9	%		80.8	%		61.2	%

Average day rates	$		7,205			7,291			7,123			7,554			8,051

Vessels commencing drydocks			7			3			4			3			3

Major repairs expense and deferred drydocking and survey costs:
Major repairs expense	$		-			-			(39	)		36			254
Cash paid for deferred drydocking and survey costs	$		4,481			2,459			1,219			1,813			1,728
	$		4,481			2,459			1,180			1,849			1,982

Deferred drydocking and survey costs - beginning balance	$		5,961			4,099			3,361			1,871			205
Cash paid for deferred drydocking and survey costs	$		4,481			2,459			1,219			1,813			1,728
Amortization of deferred drydocking and survey costs	$		(1,264	)		(597	)		(481	)		(323	)		(62	)
Deferred drydocking and survey costs - ending balance	$		9,178			5,961			4,099			3,361			1,871


		Three Months Ended
		March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands)		2019			2018			2018			2018			2018
Europe/Mediterranean Sea
Vessel revenues	$		28,558			20,717			12,566			13,357			9,623

Vessel operating costs:
Crew costs	$		13,059			9,271			5,642			5,777			4,991
Routine repairs and maintenance			2,404			1,799			1,645			1,083			1,240
Major repairs			174			550			192			900			338
Insurance and loss reserves			561			380			116			247			110
Fuel, lube and supplies			1,891			1,294			1,195			1,136			1,810
Other			2,994			2,008			1,838			1,459			1,606
Total vessel operating costs	$		21,083			15,302			10,628			10,602			10,095

Vessel operating margin ($)	$		7,475			5,415			1,938			2,755			(472	)
Vessel operating margin (%)			26.2	%		26.1	%		15.4	%		20.6	%		-4.9	%

Europe/Mediterranean Sea - Select operating statistics
Average vessels - Total fleet			48			35			22			22			21
Utilization - Total fleet			60.1	%		63.1	%		67.0	%		70.3	%		57.1	%

Average vessels - Active fleet			34			25			18			18			16
Utilization - Active fleet			84.1	%		88.8	%		81.2	%		84.4	%		74.3	%

Average day rates	$		10,964			10,350			9,302			9,489			8,928

Vessels commencing drydocks			6			2			2			6			6

Major repairs expense and deferred drydocking and survey costs:
Major repairs expense	$		174			550			192			900			338
Cash paid for deferred drydocking and survey costs	$		2,432			1,635			383			1,271			2,633
	$		2,606			2,185			575			2,171			2,971

Deferred drydocking and survey costs - beginning balance	$		4,278			3,279			3,356			2,470			—
Cash paid for deferred drydocking and survey costs	$		2,432			1,635			383			1,271			2,633
Amortization of deferred drydocking and survey costs	$		(879	)		(636	)		(460	)		(385	)		(163	)
Deferred drydocking and survey costs - ending balance	$		5,831			4,278			3,279			3,356			2,470


		Three Months Ended
		March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands)		2019			2018			2018			2018			2018
West Africa
Vessel revenues	$		35,369			36,523			36,479			35,810			33,402

Vessel operating costs:
Crew costs	$		9,360			11,894			11,392			10,837			12,032
Routine repairs and maintenance			1,734			1,826			2,382			2,263			2,816
Major repairs			189			415			(15	)		609			117
Insurance and loss reserves			287			141			(876	)		530			(480	)
Fuel, lube and supplies			2,674			3,272			3,310			3,032			3,245
Other			5,335			3,998			6,886			6,467			6,741
Total vessel operating costs	$		19,579			21,546			23,079			23,738			24,471

Vessel operating margin ($)	$		15,790			14,977			13,400			12,072			8,931
Vessel operating margin (%)			44.6	%		41.0	%		36.7	%		33.7	%		26.7	%

West Africa - Select operating statistics
Average vessels - Total fleet			83			82			83			84			93
Utilization - Total fleet			49.4	%		53.6	%		51.4	%		51.9	%		42.2	%

Average vessels - Active fleet			54			53			55			55			54
Utilization - Active fleet			76.8	%		82.8	%		77.1	%		79.5	%		72.8	%

Average day rates	$		9,627			8,982			9,291			9,050			9,501

Vessels commencing drydocks			5			4			2			3			3

Major repairs expense and deferred drydocking and survey costs:
Major repairs expense	$		189			415			(15	)		609			117
Cash paid for deferred drydocking and survey costs	$		3,194			1,380			993			353			1,724
	$		3,383			1,795			978			962			1,841

Deferred drydocking and survey costs - beginning balance	$		4,731			4,037			3,547			3,706			2,296
Cash paid for deferred drydocking and survey costs	$		3,194			1,380			993			353			1,724
Amortization of deferred drydocking and survey costs	$		(796	)		(686	)		(503	)		(495	)		(323	)
Net vessel transfers in/out of the segment	$		—			—			—			(17	)		9
Deferred drydocking and survey costs - ending balance	$		7,129			4,731			4,037			3,547			3,706


		Three Months Ended
		March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands)		2019			2018			2018			2018			2018
Worldwide
Vessel revenues	$		119,662			108,527			97,011			104,174			87,494

Vessel operating costs:
Crew costs	$		48,145			45,133			37,615			36,368			34,224
Routine repairs and maintenance			8,871			8,445			7,942			6,375			7,182
Major repairs			830			960			692			1,603			522
Insurance and loss reserves			2,178			636			(1,706	)		2,191			(1,071	)
Fuel, lube and supplies			9,345			9,317			7,980			8,181			9,012
Other			12,834			10,476			12,714			13,294			11,495
Total vessel operating costs	$		82,203			74,967			65,237			68,012			61,364

Vessel operating margin ($)	$		37,459			33,560			31,774			36,162			26,130
Vessel operating margin (%)			31.3	%		30.9	%		32.8	%		34.7	%		29.9	%

Worldwide - Select operating statistics
Average vessels - Total fleet			253			227			201			205			217
Utilization - Total fleet			53.6	%		54.4	%		54.5	%		55.5	%		44.4	%

Average vessels - Active fleet			168			150			140			141			138
Utilization - Active fleet			80.6	%		82.2	%		78.3	%		80.9	%		69.8	%

Average day rates	$		9,806			9,545			9,616			10,047			10,093

Vessels commencing drydocks			24			12			19			14			19

Major repairs expense and deferred drydocking and survey costs:
Major repairs expense	$		831			960			692			1,603			522
Cash paid for deferred drydocking and survey costs	$		12,285			8,880			3,694			4,534			8,860
	$		13,116			9,840			4,386			6,137			9,382

Deferred drydocking and survey costs - beginning balance	$		22,215			16,053			14,372			11,430			3,208
Cash paid for deferred drydocking and survey costs	$		12,285			8,880			3,694			4,534			8,860
Amortization of deferred drydocking and survey costs	$		(3,898	)		(2,718	)		(2,013	)		(1,592	)		(638	)
Deferred drydocking and survey costs - ending balance	$		30,602			22,215			16,053			14,372			11,430


		Three Months Ended
		March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands)		2019			2018			2018			2018			2018


Consolidated EBITDA (L) (M) (N) (O)	$		18,951			22,528			10,958			17,709			(9,905	)

Merger-related professional services costs			(88	)		(4,465	)		(3,036	)		(1,547	)		—
Merger-related lease exit costs						(5,538	)		—			—			—
Integration-related severance and similar costs			(3,651	)		(2,158	)		—			—			—
Impairment of due from affiliate			—			(20,083	)		—			—			—
Long-lived asset impairments			—			(36,878	)		(16,853	)		(1,215	)		(6,186	)
Sale leaseback redelivery costs			—			—			—			—			—
Loss on debt extinguishment			—			(8,119	)		—			—			—
Interest and other debt costs			(7,736	)		(7,707	)		(7,585	)		(7,547	)		(7,599	)
Income tax benefit (expense)			(5,830	)		(7,856	)		(1,278	)		(5,797	)		(3,321	)
Depreciation			(19,034	)		(17,383	)		(11,377	)		(11,192	)		(11,380	)
Amortization of deferred drydocking and survey costs			(3,898	)		(2,718	)		(2,012	)		(1,593	)		(638	)

Net loss	$		(21,286	)		(90,377	)		(31,183	)		(11,182	)		(39,029	)


		Three Months Ended
		March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands)		2019			2018			2018			2018			2018


Consolidated EBITDA (L) (M) (N) (O)	$		18,951			22,528			10,958			17,709			(9,905	)

Restructuring-related professional service costs			—			—			—			—			—
Merger-related professional services costs			(88	)		(4,465	)		(3,036	)		(1,547	)		—
Merger-related lease exit costs			—			(5,538	)		—			—			—
Integration-related severance and similar costs			(3,651	)		(2,158	)		—			—			—
Cash paid for interest			(8,319	)		(8,108	)		(8,084	)		(7,982	)		(8,152	)
Cash paid for taxes			(4,415	)		(3,149	)		(3,596	)		(3,654	)		(6,429	)
Cash paid for deferred drydocking costs			(12,285	)		(8,880	)		(3,694	)		(4,534	)		(8,860	)
Change in net working capital, excluding cash			5,999			(11,181	)		8,678			7,466			8,649
Equity in net (earnings) losses of unconsolidated companies (O)			62			3,871			(56	)		(390	)		15,439
Stock-based compensation expense			5,627			3,439			3,828			3,183			2,956
Gain on asset disposition			(1,270	)		(8,938	)		1,571			(1,338	)		(1,919	)
Changes in other, net			(3,768	)		4,290			(1,322	)		14,054			2,237

Net cash provided (used) in operating activities	$		(3,157	)		(18,289	)		5,247			22,967			(5,984	)

Note (L): Consolidated EBITDA excludes interest and other debt costs, income tax expense, depreciation and amortization, asset impairment charges, restructuring-related professional services costs and costs related to the redelivery of sale leaseback vessels. Merger and integration related costs have been separately presented in the above table.

Note (M): Consolidated EBITDA for the three months ended March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018 includes non-cash, stock-based compensation expense of $5,627, $3,439, $3,828, $3,183 and $2,956, respectively.

Note (N): Consolidated EBITDA for the three months ended March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018 includes foreign exchange gains (losses) of $(508), $1,454, $1, $(1,002) and $(348), respectively.

Note (O): Consolidated EBITDA and equity in net (earnings) losses of unconsolidated companies for the three months ended March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018 includes foreign exchange gains (losses) of $0 $0, $0, $(5,767)and $(14,823), respectively.

We disclose and discuss EBITDA as a non-GAAP financial measure in our public releases, including quarterly earnings releases, investor conference calls and other filings with the Securities and Exchange Commission. We define EBITDA as earnings (net income) before interest and other debt costs, loss on debt extinguishments, income tax expense, depreciation and amortization, merger and integration related items included in general and administrative expenses and asset impairments. Our measure of EBITDA may not be comparable to similarly titled measures presented by other companies. Other companies may calculate EBITDA differently than we do, which may limit its usefulness as a comparative measure.

We view EBITDA both as a performance and liquidity measure and, as such, we believe that the GAAP financial measures most directly comparable to it are net income and net cash provided (used) in operating activities, respectively. Because EBITDA is not a measure of financial performance calculated in accordance with GAAP, it should not be considered in isolation or as a substitute for operating income, net income or loss, cash provided (used) in operating activities, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP.

EBITDA is widely used by investors and other users of our financial statements as a supplemental financial measure that, when viewed with our GAAP results and the accompanying reconciliations, we believe EBITDA provides additional information that is useful to gain an understanding of the factors and trends affecting our ability to service debt, pay taxes and fund drydocking and survey costs and capital expenditures. We also believe the disclosure of EBITDA helps investors meaningfully evaluate and compare our cash flow generating capacity from quarter-to-quarter and year-to-year.

EBITDA is also a financial metric used by management (i) as a supplemental internal measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; (ii) to compare to the EBITDA of other companies when evaluating potential acquisitions; and (iii) to assess our ability to service existing fixed charges and incur additional indebtedness.



		Press Release