ex_275788.htm

EX-99.1 2 ex_275788.htm EXHIBIT 99.1 ex_275788.htm

Exhibit 99.1

Tidewater Inc.

6002 Rogerdale Road, Suite 600

Houston, TX 77072-1655, USA

+1.713.470.5300

Tidewater Reports Results for the Three and Nine Months Ended September 30, 2021

HOUSTON, November 9, 2021 - Tidewater Inc. (NYSE:TDW) announced today revenue for the three and nine months ended September 30, 2021 of $92.4 million and $265.9 million, respectively, compared with $86.5 million and $305.2 million, respectively, for the three and nine months ended September 30, 2020. Tidewater's net losses for the three and nine months ended September 30, 2021, were $26.3 million ($0.64 per common share) and $91.0 million ($2.22 per common share), respectively, compared with $37.9 million ($0.94 per common share) and $167.0 million ($4.15 per common share) for the three and nine months ended September 30, 2020. 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. Included in the net losses for the three and nine months ended September 30, 2020 were $2.6 million and $124.4 million, respectively, in long-lived asset impairments, affiliate credit losses, affiliate guarantee obligations, and severance expenses. Excluding these costs, we would have reported net loss for the three months ended September 30, 2020 of $35.3 million ($0.87 per common share) and a net loss for the nine months ended September 30, 2020 of $42.6 million (or $1.06 per common share).

Quintin Kneen, Tidewater’s President and Chief Executive Officer, commented, “We recently marked an important achievement with the upcoming refinancing of our senior secured notes that were due in August of 2022 with the new senior secured $175.0 million notes that mature in November of 2026. The refinancing is scheduled to close next week, and we anticipate closing on a new $25.0 million revolving credit facility and the establishment of a $30.0 million “At-the-Market” equity issuance facility shortly thereafter. The 2026 notes provide substantially increased flexibility to grow the business. The refinancing transaction was set up to be cash flow neutral, so upon closing we expect to have approximately $150.0 million of cash on hand. The new revolving credit and ATM facilities will be available to provide additional cash as needed, but we do not foresee the need to utilize these facilities in the near term due to our significant current cash position.

“The successful refinancing of the 2022 senior notes is a sign of the progress Tidewater has made over the past four years to streamline the cost structure, high-grade the fleet, generate meaningful free cash flow, and position the business to prosper as the broader industry recovery unfolds. The 2026 notes and the new revolving credit and ATM facilities will provide us with the liquidity and flexibility to take advantage of opportunities in the legacy hydrocarbon business and position us to participate in the rapidly evolving offshore renewables business.

“From an operational perspective, the business continued to show signs of improvement during the third quarter as we move towards a more robust 2022. Revenue, active vessels and utilization continued to trend up, although day rate did see a modest reduction primarily due to geographic mix. During the third quarter, we generated $4.1 million of free cash flow, even after the reinvestment of $11.1 million in drydock and vessel reactivation costs during the quarter. We remain committed to generating sustainable free cash flow, and over the trailing 12 months we generated $58.3 million in free cash flow. The total number of vessels reactivated in 2021 is now up to 15.

“During the third quarter of 2021, revenue improved 2.7% sequentially, driven primarily by the full effect of vessels being reactivated throughout the year in response to the increase in activity, particularly in the West Africa and Americas regions. We continue to see improving demand fundamentals globally, and during the third quarter we executed a five-year agreement for 17 vessels in West Africa with a major customer.

“Our ongoing fleet development program includes the sale or responsible recycling of vessels that are deemed uneconomic or which otherwise do not meet our future strategic goals, and during the third quarter we disposed of six vessels and other assets for $4.4 million. We expect both the sale and recycling of vessels to taper off in the next 12 months as we work through the 14 vessels remaining in assets held for sale.

“Our confidence in 2022 is growing as certain geographic regions and certain vessel classes have tightened such that we’ve seen material price increases, some in-excess of 50%, as the available supply of easy-to-reactivate vessels has been largely consumed by increased demand. This degree of tightness in supply is not yet pervasive in all regions or vessel classes, but we see it as indicative of improving fundamentals and a reflection of fewer available vessels than readily observable metrics would otherwise suggest. Our growing confidence is further underpinned by increased tendering activity for work that was delayed during the pandemic and by new projects scheduled for 2022, particularly in West Africa, the Middle East, and the Americas regions. We are also encouraged by the pricing discipline our competitors are exhibiting as tendering activity continues to build.”

In addition to the number of outstanding shares, as of September 30, 2021, the company also has the following in-the-money warrants.

Common Shares Outstanding			41,277,377
New Creditor Warrants (strike price $0.001 per common share)			635,663
GulfMark Creditor Warrants (strike price $0.01 per common share)			565,155
Total			42,478,195

Tidewater will hold a conference call to discuss results for the three months ending September 30, 2021 on November 10, 2021, at 8:00 a.m. Central Time. Investors and interested parties may listen to the earnings conference call 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 asking for the “Tidewater” call just 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 10:30 a.m. Central Time on November 10, 2021 and will continue until 11:59 p.m. Central Time on December 10, 2021. 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 one of the largest fleets of offshore support vessels in the industry, with more than 65 years of experience supporting offshore energy exploration, production and offshore wind activities worldwide.

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

Financial information is displayed beginning on the next page.

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)

	Three Months Ended						Nine Months Ended
	September 30, 2021			September 30, 2020			September 30, 2021			September 30, 2020
Revenues:
Vessel revenues	$	91,634		$	85,395		$	261,141		$	298,344
Other operating revenues		767			1,072			4,717			6,835
Total revenues		92,401			86,467			265,858			305,179
Costs and expenses:
Vessel operating costs		65,344			61,784			190,627			205,383
Costs of other operating revenues		355			219			2,003			3,063
General and administrative		18,045			17,438			50,875			56,455
Depreciation and amortization		27,980			30,777			86,256			86,028
Long-lived asset impairments and other		2,167			1,945			2,167			67,634
Affiliate credit loss impairment expense (credit)		—			—			(1,000	)		53,581
Affiliate guarantee obligation		—			—			—			2,000
(Gain) loss on asset dispositions, net		74			(520	)		2,954			(7,511	)
		113,965			111,643			333,882			466,633
Operating loss		(21,564	)		(25,176	)		(68,024	)		(161,454	)
Other income (expense):
Foreign exchange loss		(523	)		(1,153	)		(951	)		(2,365	)
Equity in net earnings (losses) of unconsolidated companies		100			—			(1,697	)		—
Dividend income from unconsolidated company		—			—			—			17,150
Interest income and other, net		148			272			179			1,084
Interest and other debt costs, net		(3,681	)		(6,071	)		(12,166	)		(18,172	)
Total other expense		(3,956	)		(6,952	)		(14,635	)		(2,303	)
Loss before income taxes		(25,520	)		(32,128	)		(82,659	)		(163,757	)
Income tax expense		887			5,953			8,922			3,512
Net loss	$	(26,407	)	$	(38,081	)	$	(91,581	)	$	(167,269	)
Less: Net loss attributable to noncontrolling interests		(149	)		(154	)		(546	)		(274	)
Net loss attributable to Tidewater Inc.	$	(26,258	)	$	(37,927	)	$	(91,035	)	$	(166,995	)
Basic loss per common share	$	(0.64	)	$	(0.94	)	$	(2.22	)	$	(4.15	)
Diluted loss per common share	$	(0.64	)	$	(0.94	)	$	(2.22	)	$	(4.15	)
Weighted average common shares outstanding		41,132			40,405			40,918			40,271
Adjusted weighted average common shares		41,132			40,405			40,918			40,271

TIDEWATER INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and par value data)

	September 30, 2021			December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	127,414		$	149,933
Restricted cash		24,092			2,079
Trade and other receivables, less allowance for credit losses of $2,134 and $1,516 at September 30, 2021 and December 31, 2020, respectively		86,015			112,623
Due from affiliates, less allowance for credit losses of $70,638 and $71,800 at September 30, 2021 and December 31, 2020, respectively		68,217			62,050
Marine operating supplies		13,335			15,876
Assets held for sale		17,891			34,396
Prepaid expenses and other current assets		13,129			11,692
Total current assets		350,093			388,649
Net properties and equipment		709,324			780,318
Deferred drydocking and survey costs		40,510			56,468
Other assets		23,146			25,742
Total assets	$	1,123,073		$	1,251,177

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	18,042		$	16,981
Accrued expenses		52,133			52,422
Due to affiliates		59,571			53,194
Current portion of long-term debt		140,995			27,797
Other current liabilities		29,139			32,785
Total current liabilities		299,880			183,179
Long-term debt		14,139			164,934
Other liabilities and deferred credits		74,442			79,792

Commitments and contingencies

Equity:
Common stock		41			41
Additional paid-in-capital		1,375,215			1,371,809
Accumulated deficit		(639,966	)		(548,931	)
Accumulated other comprehensive loss		(1,289	)		(804	)
Total stockholder's equity		734,001			822,115
Noncontrolling interests		611			1,157
Total equity		734,612			823,272
Total liabilities and equity	$	1,123,073		$	1,251,177

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)

(In thousands)

	Three Months Ended						Nine Months Ended
	September 30, 2021			September 30, 2020			September 30, 2021			September 30, 2020
Net loss	$	(26,407	)	$	(38,081	)	$	(91,581	)	$	(167,269	)
Other comprehensive income (loss):
Change in pension plan and supplemental pension plan liability, net of tax of $0, $0.2 million, $0 and $0.4 million, respectively		(207	)		525			(485	)		1,342
Total comprehensive loss	$	(26,614	)	$	(37,556	)	$	(92,066	)	$	(165,927	)

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

	Nine Months			Nine Months
	Ended			Ended
	September 30, 2021			September 30, 2020
Operating activities:
Net loss	$	(91,581	)	$	(167,269	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		54,605			53,614
Amortization of deferred drydocking and survey costs		31,651			32,414
Amortization of debt premiums and discounts		2,662			2,418
Provision for deferred income taxes		167			107
(Gain) loss on asset dispositions, net		2,954			(7,511	)
Loss on debt extinguishment		59			—
Affiliate credit loss impairment expense (credit)		(1,000	)		53,581
Affiliate guarantee obligation		—			2,000
Long-lived asset impairments and other		2,167			67,634
Stock-based compensation expense		4,199			3,959
Changes in operating assets and liabilities, net:
Trade and other receivables		26,608			9,434
Changes in due to/from affiliates, net		1,210			9,852
Accounts payable		1,061			(14,548	)
Accrued expenses		(473	)		(18,189	)
Deferred drydocking and survey costs		(17,388	)		(29,499	)
Other, net		(8,833	)		3,809
Net cash provided by operating activities		8,068			1,806
Cash flows from investing activities:
Proceeds from asset dispositions		33,956			31,498
Additions to properties and equipment		(2,583	)		(4,682	)
Net cash provided by investing activities		31,373			26,816
Cash flows from financing activities:
Principal payments on long-term debt		(39,259	)		(33,520	)
Debt modification costs		(855	)		—
Debt extinguishment premium		(59	)		—
Tax on share-based awards		(793	)		(702	)
Net cash used in financing activities		(40,966	)		(34,222	)
Net change in cash, cash equivalents and restricted cash		(1,525	)		(5,600	)
Cash, cash equivalents and restricted cash at beginning of period		155,225			227,608
Cash, cash equivalents and restricted cash at end of period	$	153,700		$	222,008


Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest, net of amounts capitalized	10,083	16,169
Income taxes	14,735	9,940

Note: Cash, cash equivalents and restricted cash at September 30, 2021 includes $2.2 million in long-term restricted cash, which is included in other assets in our consolidated balance sheet.

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

(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, 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

Balance at June 30, 2020	$	40		1,369,645		(481,757	)		581			1,491			890,000
Total comprehensive income (loss)		—		—		(37,927	)		525			(154	)		(37,556	)
Amortization of share-based awards		—		1,133		—			—			—			1,133
Balance at September 30, 2020	$	40		1,370,778		(519,684	)		1,106			1,337			853,577

	Nine Months Ended
								Accumulated
			Additional					other			Non
	Common		paid-in		Accumulated			comprehensive			controlling
	stock		capital		deficit			income (loss)			interest			Total
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

Balance at December 31, 2019	$	40		1,367,521		(352,526	)		(236	)		1,611			1,016,410
Total comprehensive income (loss)		—		—		(166,995	)		1,342			(274	)		(165,927	)
Adoption of credit loss accounting standard		—		—		(163	)		—			—			(163	)
Amortization of share-based awards		—		3,257		—			—			—			3,257
Balance at September 30, 2020	$	40		1,370,778		(519,684	)		1,106			1,337			853,577

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

	Three Months Ended								Nine Months Ended
(In thousands, except for percentages)	September 30, 2021				September 30, 2020				September 30, 2021				September 30, 2020
Vessel revenues:
Americas	$	24,564	27	%	$	28,705	34	%	$	74,269	29	%	$	94,608	32	%
Middle East/Asia Pacific		25,633	28	%		23,280	27	%		75,675	29	%		72,091	24	%
Europe/Mediterranean		21,197	23	%		17,716	21	%		58,413	22	%		67,827	23	%
West Africa		20,240	22	%		15,694	18	%		52,784	20	%		63,818	21	%
Total vessel revenues	$	91,634	100	%	$	85,395	100	%	$	261,141	100	%	$	298,344	100	%
Vessel operating costs:
Crew costs	$	35,609	39	%	$	36,686	43	%	$	108,456	42	%	$	119,864	40	%
Repair and maintenance		10,497	11	%		5,932	7	%		29,468	11	%		23,186	8	%
Insurance		812	1	%		1,953	2	%		1,298	1	%		5,748	2	%
Fuel, lube and supplies		6,751	7	%		6,757	8	%		19,152	7	%		22,892	8	%
Other		11,675	13	%		10,456	12	%		32,253	12	%		33,693	11	%
Total vessel operating costs		65,344	71	%		61,784	72	%		190,627	73	%		205,383	69	%
Vessel operating margin (A)	$	26,290	29	%	$	23,611	28	%	$	70,514	27	%	$	92,961	31	%

Note (A): Vessel operating margin equals revenues less vessel operating costs and excludes general and administrative expenses and depreciation and amortization.

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

	Three Months Ended										Nine Months Ended
(In thousands, except for percentages)	September 30, 2021					September 30, 2020					September 30, 2021					September 30, 2020
Vessel operating profit (loss):
Americas	$	(1,770	)	(2	)%	$	107		0	%	$	(8,361	)	(3	)%	$	3,448		1	%
Middle East/Asia Pacific		(713	)	(1	)%		(2,222	)	(3	)%		(2,300	)	(1	)%		(2,479	)	(1	)%
Europe/Mediterranean		(2,866	)	(3	)%		(3,883	)	(4	)%		(12,873	)	(5	)%		(4,086	)	(1	)%
West Africa		(3,724	)	(4	)%		(10,168	)	(12	)%		(15,846	)	(6	)%		(19,015	)	(6	)%
Other operating profit		412		0	%		853		1	%		2,714		1	%		3,772		1	%
		(8,661	)	(9	)%		(15,313	)	(18	)%		(36,666	)	(14	)%		(18,360	)	(6	)%

Corporate expenses (A)		(10,662	)	(12	)%		(8,438	)	(10	)%		(27,237	)	(10	)%		(27,390	)	(9	)%
Gain (loss) on asset dispositions, net		(74	)	(0	)%		520		1	%		(2,954	)	(1	)%		7,511		2	%
Affiliate credit loss impairment (expense) credit		—		0	%		—		0	%		1,000		0	%		(53,581	)	(18	)%
Affiliate guarantee obligation		—		0	%		—		0	%		—		0	%		(2,000	)	(1	)%
Long-lived asset impairments and other		(2,167	)	(2	)%		(1,945	)	(2	)%		(2,167	)	(1	)%		(67,634	)	(22	)%
Operating loss	$	(21,564	)	(23	)%	$	(25,176	)	(29	)%	$	(68,024	)	(26	)%	$	(161,454	)	(53	)%

Note (A): 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. General and administrative expenses for the three and nine months ended September 30, 2020 include stock-based compensation of $1.3 million and $4.0 million, respectively. In addition, 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. Vessel operating and general and administrative costs for the three and nine months ended September 30, 2020, include $0.6 million and $1.2 million in one-time restructuring and integration related costs, respectively.

TIDEWATER INC.

CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) – QUARTERLY DATA

(Unaudited)

(In thousands, except per share data)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2021			2021			2021			2020			2020
Revenues:
Vessel revenues	$	91,634			88,514			80,993			87,830			85,395
Other operating revenues		767			1,439			2,511			4,029			1,072
Total revenues		92,401			89,953			83,504			91,859			86,467
Costs and expenses:
Vessel operating costs (A)		65,344			64,263			61,020			63,397			61,784
Costs of other operating revenue		355			581			1,067			342			219
General and administrative (A)		18,045			16,787			16,043			16,992			17,438
Depreciation and amortization		27,980			28,549			29,727			30,681			30,777
Long-lived asset impairments and other		2,167			—			—			6,475			1,945
Affiliate credit loss impairment credit		—			(1,000	)		—			(600	)		—
(Gain) loss on asset dispositions, net		74			932			1,948			(80	)		(520	)
Total operating costs and expenses		113,965			110,112			109,805			117,207			111,643
Operating loss		(21,564	)		(20,159	)		(26,301	)		(25,348	)		(25,176	)
Other income (expense):
Foreign exchange gain (loss)		(523	)		422			(850	)		(2,880	)		(1,153	)
Equity in net earnings (losses) of unconsolidated companies		100			52			(1,849	)		164			—
Interest income and other, net		148			8			23			144			272
Interest and other debt costs, net		(3,681	)		(3,944	)		(4,541	)		(5,984	)		(6,071	)
Total other expense		(3,956	)		(3,462	)		(7,217	)		(8,556	)		(6,952	)
Loss before income taxes		(25,520	)		(23,621	)		(33,518	)		(33,904	)		(32,128	)
Income tax (benefit) expense		887			6,026			2,009			(4,477	)		5,953
Net loss		(26,407	)		(29,647	)		(35,527	)		(29,427	)		(38,081	)
Net loss attributable to noncontrolling interests		(149	)		(185	)		(212	)		(180	)		(154	)
Net loss attributable to Tidewater Inc.	$	(26,258	)		(29,462	)		(35,315	)		(29,247	)		(37,927	)
Basic loss per common share	$	(0.64	)		(0.72	)		(0.87	)		(0.72	)		(0.94	)
Diluted loss per common share	$	(0.64	)		(0.72	)		(0.87	)		(0.72	)		(0.94	)
Weighted average common shares outstanding		41,132			40,899			40,716			40,604			40,405
Dilutive effect of stock options and restricted stock		—			—			—			—			—
Adjusted weighted average common shares		41,132			40,899			40,716			40,604			40,405
Vessel operating margin	$	26,290			24,251			19,973			24,433			23,611


Note (A) One-time restructuring and integration related costs	$	112			795			103			291			641

TIDEWATER INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

	September 30,			June 30,			March 31,			December 31,			September 30,
	2021			2021			2021			2020			2020
ASSETS
Current assets:
Cash and cash equivalents	$	127,414			131,157			131,858			149,933			192,243
Restricted cash		24,092			20,284			9,061			2,079			26,401
Trade and other receivables, net		86,015			90,229			99,865			112,623			100,583
Due from affiliate, net		68,217			64,922			62,474			62,050			65,692
Marine operating supplies		13,335			15,404			15,676			15,876			17,808
Assets held for sale		17,891			17,214			31,214			34,396			19,163
Prepaid expenses and other current assets		13,129			15,953			13,594			11,692			18,925
Total current assets		350,093			355,163			363,742			388,649			440,815
Net properties and equipment		709,324			731,659			754,707			780,318			820,876
Deferred drydocking and survey costs		40,510			40,372			46,648			56,468			63,975
Other assets		23,146			24,539			23,833			25,742			25,108
Total assets	$	1,123,073			1,151,733			1,188,930		$	1,251,177		$	1,350,774

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	18,042			16,189			14,622			16,981			12,953
Accrued expenses		52,133			50,532			48,466			52,422			55,811
Due to affiliates		59,571			59,759			56,356			53,194			53,355
Current portion of long-term debt		140,995			7,355			18,201			27,797			9,576
Other current liabilities		29,139			28,825			35,003			32,785			31,599
Total current liabilities		299,880			162,660			172,648			183,179			163,294
Long-term debt		14,139			148,612			148,337			164,934			246,179
Other liabilities and deferred credits		74,442			80,723			79,234			79,792			87,724


Equity:
Common stock		41			41			41			41			40
Additional paid-in-capital		1,375,215			1,373,727			1,372,846			1,371,809			1,370,778
Accumulated deficit		(639,966	)		(613,708	)		(584,246	)		(548,931	)		(519,684	)
Accumulated other comprehensive income (loss)		(1,289	)		(1,082	)		(875	)		(804	)		1,106
Total stockholder's equity		734,001			758,978			787,766			822,115			852,240
Noncontrolling interests		611			760			945			1,157			1,337
Total equity		734,612			759,738			788,711			823,272			853,577
Total liabilities and equity	$	1,123,073			1,151,733			1,188,930			1,251,177			1,350,774

Supplemental information
Due from related parties, net of due to related parties:
Sonatide (Angola)	$	8,646			5,163			6,118			8,856			12,337

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

(Unaudited)

(In thousands)

	Three Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
	2021		2021		2021		2020		2020
VESSEL REVENUE BY VESSEL CLASS

Americas fleet:
Deepwater	$	18,961		17,796		19,876		25,706		22,836
Towing-supply		4,440		4,535		4,817		4,603		4,119
Other		1,163		1,150		1,531		1,759		1,750
Total		24,564		23,481		26,224		32,068		28,705
Middle East/Asia Pacific fleet:
Deepwater	$	17,292		17,264		15,931		16,822		13,819
Towing-supply		8,341		8,364		8,483		8,220		9,461
Total		25,633		25,628		24,414		25,042		23,280
Europe/Mediterranean fleet:
Deepwater	$	21,037		22,293		14,588		15,621		17,578
Towing-supply		—		11		—		—		(13	)
Other		160		163		161		154		151
Total		21,197		22,467		14,749		15,775		17,716
West Africa fleet:
Deepwater	$	10,967		8,814		7,909		6,237		4,905
Towing-supply		5,474		5,564		4,879		5,202		7,711
Other		3,799		2,560		2,818		3,506		3,078
Total	$	20,240		16,938		15,606		14,945		15,694
Worldwide fleet:
Deepwater	$	68,257		66,167		58,304		64,386		59,138
Towing-supply		18,255		18,474		18,179		18,025		21,278
Other		5,122		3,873		4,510		5,419		4,979
Total	$	91,634		88,514		80,993		87,830		85,395

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

(Unaudited)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2021			2021			2021			2020			2020
AVERAGE NUMBER OF VESSELS:

Americas fleet:
Deepwater		25			27			29			32			32
Towing-supply		8			8			8			10			12
Other		3			3			3			3			3
Total		36			38			40			45			47
Stacked vessels		(11	)		(13	)		(12	)		(15	)		(17	)
Active vessels		25			25			28			30			30
Middle East/Asia Pacific fleet:
Deepwater		20			20			21			21			22
Towing-supply		18			18			20			22			23
Total		38			38			41			43			45
Stacked vessels		(1	)		(1	)		(3	)		(3	)		(4	)
Active vessels		37			37			38			40			41
Europe/Mediterranean fleet:
Deepwater		28			29			31			31			32
Total		28			29			31			31			32
Stacked vessels		(7	)		(8	)		(14	)		(16	)		(17	)
Active vessels		21			21			17			15			15
West Africa fleet:
Deepwater		19			20			20			20			25
Towing-supply		11			11			12			13			17
Other		25			26			26			23			16
Total		55			57			58			56			58
Stacked vessels		(19	)		(22	)		(25	)		(26	)		(31	)
Active vessels		36			35			33			30			27
Worldwide fleet:
Deepwater		92			96			101			104			111
Towing-supply		37			37			40			45			52
Other		28			29			29			26			19
Total		157			162			170			175			182
Stacked vessels		(38	)		(44	)		(54	)		(60	)		(69	)
Active vessels		119			118			116			115			113

Total active		119			118			116			115			113
Total stacked		38			44			54			60			69
Total joint venture and other vessels		3			3			3			3			3
Total		160			165			173			178			185

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

(Unaudited)

	Three Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
	2021		2021		2021		2020		2020
AVAILABLE DAYS - TOTAL FLEET:

Americas fleet:
Deepwater		2,300		2,497		2,627		2,944		2,996
Towing-supply		736		728		720		898		1,098
Other		244		273		270		276		276
Total		3,280		3,498		3,617		4,118		4,370
Middle East/Asia Pacific fleet:
Deepwater		1,840		1,820		1,863		1,932		2,025
Towing-supply		1,656		1,667		1,822		2,032		2,118
Total		3,496		3,487		3,685		3,964		4,143
Europe/Mediterranean fleet:
Deepwater		2,612		2,672		2,756		2,852		2,916
Towing-supply		—		—		—		—		24
Total		2,612		2,672		2,756		2,852		2,940
West Africa fleet:
Deepwater		1,718		1,853		1,827		1,840		2,269
Towing-supply		1,011		1,001		1,084		1,196		1,588
Other		2,328		2,366		2,340		2,095		1,469
Total		5,057		5,220		5,251		5,131		5,326
Worldwide fleet:
Deepwater		8,470		8,842		9,073		9,568		10,206
Towing-supply		3,403		3,396		3,626		4,126		4,828
Other		2,572		2,639		2,610		2,371		1,745
Total		14,445		14,877		15,309		16,065		16,779

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

(Unaudited)

	Three Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
	2021		2021		2021		2020		2020
OUT-OF-SERVICE - STACKED DAYS:

Americas fleet:
Deepwater		814		889		923		1,105		1,134
Towing-supply		92		91		90		189		362
Other		152		182		90		92		92
Total		1,058		1,162		1,103		1,386		1,588
Middle East/Asia Pacific fleet:
Deepwater		92		91		90		92		185
Towing-supply		—		29		180		177		186
Total		92		120		270		269		371
Europe/Mediterranean fleet:
Deepwater		641		766		1,238		1,448		1,522
Towing-supply		—		—		—		—		24
Total		641		766		1,238		1,448		1,546
West Africa fleet:
Deepwater		537		852		1,104		1,288		1,809
Towing-supply		551		516		544		644		882
Other		655		637		599		417		181
Total		1,743		2,005		2,247		2,349		2,872
Worldwide fleet:
Deepwater		2,084		2,598		3,355		3,933		4,650
Towing-supply		643		636		814		1,010		1,454
Other		807		819		689		509		273
Total		3,534		4,053		4,858		5,452		6,377

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

(Unaudited)

	Three Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
	2021		2021		2021		2020		2020
AVAILABLE DAYS - ACTIVE FLEET:

Americas fleet:
Deepwater		1,486		1,608		1,704		1,839		1,862
Towing-supply		644		637		630		709		736
Other		92		91		180		184		184
Total		2,222		2,336		2,514		2,732		2,782
Middle East/Asia Pacific fleet:
Deepwater		1,748		1,729		1,773		1,840		1,840
Towing-supply		1,656		1,638		1,642		1,855		1,932
Total		3,404		3,367		3,415		3,695		3,772
Europe/Mediterranean fleet:
Deepwater		1,971		1,906		1,518		1,404		1,394
Total		1,971		1,906		1,518		1,404		1,394
West Africa fleet:
Deepwater		1,181		1,001		723		552		460
Towing-supply		460		485		540		552		706
Other		1,673		1,729		1,741		1,678		1,288
Total		3,314		3,215		3,004		2,782		2,454
Worldwide fleet:
Deepwater		6,386		6,244		5,718		5,635		5,556
Towing-supply		2,760		2,760		2,812		3,116		3,374
Other		1,765		1,820		1,921		1,862		1,472
Total		10,911		10,824		10,451		10,613		10,402

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

(Unaudited)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2021			2021			2021			2020			2020
UTILIZATION - TOTAL FLEET:

Americas fleet:
Deepwater		53.0	%		45.6	%		55.6	%		53.2	%		51.7	%
Towing-supply		64.9			76.3			83.2			67.7			50.0
Other		37.7			33.3			55.7			66.7			66.7
Total		54.5	%		51.0	%		61.1	%		57.2	%		52.2	%
Middle East/Asia Pacific fleet:
Deepwater		86.2	%		88.3	%		80.1	%		78.2	%		67.4	%
Towing-supply		83.7			82.5			75.6			62.5			72.3
Total		85.0	%		85.5	%		77.9	%		70.2	%		69.9	%
Europe/Mediterranean fleet:
Deepwater		68.3	%		64.7	%		44.7	%		44.7	%		45.5	%
Total		68.3	%		64.7	%		44.7	%		44.7	%		45.1	%
West Africa fleet:
Deepwater		54.6	%		42.3	%		36.2	%		27.2	%		17.5	%
Towing-supply		40.0			38.4			30.1			30.8			28.4
Other		43.9			34.6			34.4			42.3			53.1
Total		46.7	%		38.1	%		34.1	%		34.2	%		30.6	%
Worldwide fleet:
Deepwater		65.2	%		59.4	%		53.4	%		50.7	%		45.4	%
Towing-supply		66.6			68.2			63.5			54.4			52.4
Other		43.3			34.5			36.6			45.2			55.3
Total		61.7	%		57.0	%		52.9	%		50.9	%		48.5	%

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

(Unaudited)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2021			2021			2021			2020			2020
UTILIZATION - ACTIVE FLEET:

Americas fleet:
Deepwater		82.0	%		70.7	%		85.7	%		85.1	%		83.2	%
Towing-supply		74.1			87.2			95.1			85.7			74.6
Other		100.0			100.0			83.6			100.0			100.0
Total		80.4	%		76.4	%		87.9	%		86.3	%		82.0	%
Middle East/Asia Pacific fleet:
Deepwater		90.8	%		92.9	%		84.2	%		82.1	%		74.2	%
Towing-supply		83.7			84.0			83.9			68.5			79.2
Total		87.3	%		88.6	%		84.0	%		75.3	%		76.8	%
Europe/Mediterranean fleet:
Deepwater		90.5	%		90.6	%		81.3	%		90.9	%		95.1	%
Total		90.5	%		90.6	%		81.3	%		90.9	%		95.1	%
West Africa fleet:
Deepwater		79.4	%		78.3	%		91.4	%		90.8	%		86.2	%
Towing-supply		87.9			79.2			60.4			66.7			63.8
Other		61.1			47.4			46.2			52.9			60.6
Total		71.3	%		61.8	%		59.6	%		63.1	%		66.3	%
Worldwide fleet:
Deepwater		86.5	%		84.2	%		84.8	%		86.1	%		83.4	%
Towing-supply		82.2			83.9			81.9			72.1			75.0
Other		63.1			50.0			49.7			57.5			65.5
Total		81.6	%		78.4	%		77.6	%		77.0	%		78.2	%

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

(Unaudited)

	Three Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
	2021		2021		2021		2020		2020
AVERAGE VESSEL DAY RATES: (A)

Americas fleet:
Deepwater	$	15,568		15,646		13,608		16,416		14,743
Towing-supply		9,298		8,162		8,040		7,576		7,506
Other		12,640		12,634		10,179		9,559		9,514
Total	$	13,742		13,162		11,865		13,602		12,581
Middle East/Asia Pacific fleet:
Deepwater	$	10,899		10,743		10,670		11,129		10,127
Towing-supply		6,018		6,080		6,159		6,471		6,180
Total	$	8,623		8,593		8,506		9,002		8,040
Europe/Mediterranean fleet:
Deepwater	$	11,800		12,905		11,829		12,368		13,257
Total	$	11,890		13,005		11,960		12,368		13,361
West Africa fleet:
Deepwater	$	11,700		11,242		11,972		12,449		12,365
Towing-supply		13,536		14,480		14,967		14,136		17,122
Other		3,717		3,124		3,501		3,952		3,944
Total	$	8,562		8,521		8,711		8,510		9,643
Worldwide fleet:
Deepwater	$	12,355		12,589		12,028		13,265		12,756
Towing-supply		8,049		7,978		7,896		8,026		8,411
Other		4,598		4,253		4,721		5,059		5,163
Total	$	10,288		10,435		9,993		10,749		10,503

Note (A): Average Vessel Day Rates equals Vessel Revenue / Days Worked.

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

(Unaudited)

(In thousands)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2021			2021			2021			2020			2020

Americas
Vessel revenues	$	24,564			23,481			26,224			32,068			28,705

Vessel operating costs:
Crew costs	$	8,535			11,132			10,594			12,795			11,711
Repair and maintenance		2,951			2,192			2,714			2,065			1,259
Insurance		219			(30	)		200			402			426
Fuel, lube and supplies		2,028			1,952			1,774			1,822			1,754
Other		3,008			2,972			1,980			2,306			2,486
Total vessel operating costs	$	16,741			18,218			17,262			19,390			17,636

Vessel operating margin ($)	$	7,823			5,263			8,962			12,678			11,069
Vessel operating margin (%)		31.8	%		22.4	%		34.2	%		39.5	%		38.6	%

Americas - Select operating statistics
Average vessels - Total fleet		36			38			40			45			47
Utilization - Total fleet		54.5	%		51.0	%		61.1	%		57.2	%		52.2	%

Average vessels - Active fleet		25			25			28			30			30
Utilization - Active fleet		80.4	%		76.4	%		87.9	%		86.3	%		82.0	%

Average day rates	$	13,742			13,162			11,865			13,602			12,581

Vessels commencing drydocks		4			3			1			1			—


Deferred drydocking and survey costs - beginning balance	$	12,919			11,813			15,440			17,774			20,024
Cash paid for deferred drydocking and survey costs		4,906			2,157			881			1,015			1,086
Amortization of deferred drydocking and survey costs		(2,936	)		(2,753	)		(3,222	)		(3,349	)		(3,336	)
Disposals, intersegment transfers and other		(1,765	)		1,702			(1,286	)		—			—
Deferred drydocking and survey costs - ending balance	$	13,124			12,919			11,813			15,440			17,774

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

(Unaudited)

(In thousands)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2021			2021			2021			2020			2020

Middle East/Asia Pacific
Vessel revenues	$	25,633			25,628			24,414			25,042			23,280

Vessel operating costs:
Crew costs	$	9,950			9,910			9,639			9,982			10,468
Repair and maintenance		2,944			2,632			2,659			2,899			2,385
Insurance		60			37			(224	)		452			562
Fuel, lube and supplies		1,747			1,494			1,569			1,924			1,783
Other		3,334			2,692			2,959			3,532			2,057
Total vessel operating costs	$	18,035			16,765			16,602			18,789			17,255

Vessel operating margin ($)	$	7,598			8,863			7,812			6,253			6,025
Vessel operating margin (%)		29.6	%		34.6	%		32.0	%		25.0	%		25.9	%

Middle East/Asia Pacific - Select operating statistics
Average vessels - Total fleet		38			38			41			43			45
Utilization - Total fleet		85.0	%		85.5	%		77.9	%		70.2	%		69.9	%

Average vessels - Active fleet		37			37			38			40			41
Utilization - Active fleet		87.3	%		88.6	%		84.0	%		75.3	%		76.8	%

Average day rates	$	8,623			8,593			8,506			9,002			8,040

Vessels commencing drydocks		1			4			—			3			—


Deferred drydocking and survey costs - beginning balance	$	12,124			13,989			17,031			18,666			21,116
Cash paid for deferred drydocking and survey costs		2,441			1,354			72			1,447			386
Amortization of deferred drydocking and survey costs		(2,669	)		(2,820	)		(3,114	)		(3,082	)		(3,036	)
Disposals, intersegment transfers and other		(68	)		(399	)		—			—			200
Deferred drydocking and survey costs - ending balance		11,828			12,124			13,989			17,031			18,666

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

(Unaudited)

(In thousands)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2021			2021			2021			2020			2020

Europe/Mediterranean
Vessel revenues	$	21,197			22,467			14,749			15,775			17,716

Vessel operating costs:
Crew costs	$	10,541			10,519			9,022			8,179			7,952
Repair and maintenance		1,754			2,244			1,673			1,133			869
Insurance		208			(131	)		299			297			448
Fuel, lube and supplies		846			864			759			710			592
Other		1,926			1,803			1,707			1,214			1,274
Total vessel operating costs	$	15,275			15,299			13,460			11,533			11,135

Vessel operating margin ($)	$	5,922			7,168			1,289			4,242			6,581
Vessel operating margin (%)		27.9	%		31.9	%		8.7	%		26.9	%		37.1	%

Europe/Mediterranean - Select operating statistics
Average vessels - Total fleet		28			29			31			31			32
Utilization - Total fleet		68.3	%		64.7	%		44.7	%		44.7	%		45.1	%

Average vessels - Active fleet		21			21			17			15			15
Utilization - Active fleet		90.5	%		90.6	%		81.3	%		90.9	%		95.1	%

Average day rates	$	11,890			13,005			11,960			12,368			13,361

Vessels commencing drydocks		1			2			3			4			—


Deferred drydocking and survey costs - beginning balance	$	6,340			7,731			7,317			7,147			9,143
Cash paid for deferred drydocking and survey costs		892			162			2,067			1,710			(361	)
Amortization of deferred drydocking and survey costs		(1,316	)		(1,553	)		(1,653	)		(1,540	)		(1,635	)
Disposals, intersegment transfers and other		(345	)					—			—			—
Deferred drydocking and survey costs - ending balance	$	5,571			6,340			7,731			7,317			7,147

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

(Unaudited)

(In thousands)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2021			2021			2021			2020			2020

West Africa
Vessel revenues	$	20,240			16,938			15,606			14,945			15,694

Vessel operating costs:
Crew costs	$	6,583			6,124			5,907			5,804			6,555
Repair and maintenance		2,848			2,466			2,391			1,930			1,419
Insurance		325			(13	)		348			296			517
Fuel, lube and supplies		2,130			2,231			1,758			1,765			2,628
Other		3,407			3,173			3,292			3,890			4,639
Total vessel operating costs	$	15,293			13,981			13,696			13,685			15,758

Vessel operating margin ($)	$	4,947			2,957			1,910			1,260			(64	)
Vessel operating margin (%)		24.4	%		17.5	%		12.2	%		8.4	%		(0.4	)%

West Africa - Select operating statistics
Average vessels - Total fleet		55			57			58			56			58
Utilization - Total fleet		46.7	%		38.1	%		34.1	%		34.2	%		30.6	%

Average vessels - Active fleet		36			35			33			30			27
Utilization - Active fleet		71.3	%		61.8	%		59.6	%		63.1	%		66.3	%

Average day rates	$	8,562			8,521			8,711			8,510			9,643

Vessels commencing drydocks		3			2			—			—			—


Deferred drydocking and survey costs - beginning balance	$	8,989			13,115			16,680			20,388			24,301
Cash paid for deferred drydocking and survey costs		2,378			376			(298	)		(400	)		(576	)
Amortization of deferred drydocking and survey costs		(3,148	)		(3,199	)		(3,268	)		(3,294	)		(3,426	)
Disposals, intersegment transfers and other		1,768			(1,303	)		1			(14	)		89
Deferred drydocking and survey costs - ending balance	$	9,987			8,989			13,115			16,680			20,388

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

(Unaudited)

(In thousands)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2021			2021			2021			2020			2020

Worldwide
Vessel revenues	$	91,634			88,514			80,993			87,830			85,395

Vessel operating costs:
Crew costs	$	35,609			37,685			35,162			36,760			36,686
Repair and maintenance		10,497			9,534			9,437			8,027			5,932
Insurance		812			(137	)		623			1,447			1,953
Fuel, lube and supplies		6,751			6,541			5,860			6,221			6,757
Other		11,675			10,640			9,938			10,942			10,456
Total vessel operating costs	$	65,344			64,263			61,020			63,397			61,784

Vessel operating margin ($)	$	26,290			24,251			19,973			24,433			23,611
Vessel operating margin (%)		28.7	%		27.4	%		24.7	%		27.8	%		27.6	%

Worldwide - Select operating statistics
Average vessels - Total fleet		157			162			170			175			182
Utilization - Total fleet		61.7	%		57.0	%		52.9	%		50.9	%		48.5	%

Average vessels - Active fleet		119			118			116			115			113
Utilization - Active fleet		81.6	%		78.4	%		77.6	%		77.0	%		78.2	%

Average day rates	$	10,288			10,435			9,993			10,749			10,503

Vessels commencing drydocks		9			11			4			8			—


Deferred drydocking and survey costs - beginning balance	$	40,372			46,648			56,468			63,975			74,584
Cash paid for deferred drydocking and survey costs		10,617			4,049			2,722			3,772			535
Amortization of deferred drydocking and survey costs		(10,069	)		(10,325	)		(11,257	)		(11,265	)		(11,433	)
Disposals, intersegment transfers and other		(410	)		—			(1,285	)		(14	)		289
Deferred drydocking and survey costs - ending balance	$	40,510			40,372			46,648			56,468			63,975

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

(Unaudited)

(In thousands)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2021			2021			2021			2020			2020
Net loss	$	(26,407	)		(29,647	)		(35,527	)		(29,427	)		(38,081	)

Interest and other debt costs		3,681			3,944			4,541			5,984			6,071
Income tax (benefit) expense		887			6,026			2,009			(4,477	)		5,953
Depreciation		17,911			18,224			18,470			19,416			19,343
Amortization of deferred drydock and survey costs		10,069			10,325			11,257			11,265			11,434
EBITDA (A), (B), (C)	$	6,141			8,872			750			2,761			4,720

Long-lived asset impairments and other		2,167			—			—			6,475			1,945
Affiliate credit loss impairment expense (credit)		—			(1,000	)		—			(600	)		—
One-time integration related costs		112			795			103			291			641
Adjusted EBITDA (A), (B), (C)	$	8,420			8,667			853			8,927			7,306

Note (A): EBITDA excludes interest and other debt costs, income tax expense, depreciation and amortization. Additionally, Adjusted EBITDA excludes impairment charges, and merger and integration related costs.

Note (B): EBITDA and Adjusted EBITDA for the three months ended September 30, 2021, and for each of the prior four quarters includes non-cash, stock-based compensation expense of $1,523, $1,504, $1,172, $1,158, and $1,223, respectively.

Note (C): EBITDA and Adjusted EBITDA for the three months ended September 30, 2021, and for each of the prior four quarters includes foreign exchange gain (losses) of $(523), $422, $(850), $(2,880), and $(1,153), respectively.

Non-GAAP Financial Measures

We disclose and discuss EBITDA and Adjusted EBITDA as non-GAAP financial measures 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 or loss) before interest and other debt costs, income tax expense, depreciation and amortization. Additionally, Adjusted EBITDA excludes impairment charges and merger and integration related costs. Our measures of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures presented by other companies. Other companies may calculate EBITDA and Adjusted EBITDA differently than we do, which may limit its usefulness as a comparative measure.

Because EBITDA and Adjusted EBITDA are not measures of financial performance calculated in accordance with GAAP, they 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 and Adjusted EBITDA are 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 provide 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 and Adjusted EBITDA helps investors meaningfully evaluate and compare our cash flow generating capacity from quarter-to-quarter and year-to-year.

EBITDA and Adjusted EBITDA are also financial metrics 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 and Adjusted EBITDA of other companies when evaluating potential acquisitions; and (iii) to assess our ability to service existing fixed charges and incur additional indebtedness.

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

(Unaudited)

(In thousands)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2021			2021			2021			2020			2020
Net cash provided by (used in) operating activities (A)	$	(2,499	)		4,851			5,716			2,180			14,629

Cash interest expense		3,055			3,282			3,746			5,066			5,435
Interest income and other		(148	)		(8	)		(23	)		(144	)		(272	)
Additions to property and equipment		(722	)		(665	)		(1,196	)		(10,218	)		(607	)
Expansion capital		—			—			—			5,300			—
Free cash flow before proceeds from asset sales		(314	)		7,460			8,243			2,184			19,185

Proceeds from asset sales		4,396			18,577			10,983			6,798			10,592

Free cash flow	$	4,082			26,037			19,226			8,982			29,777

Free cash flow is a non-GAAP investment performance indicator which we believe provides useful information regarding the net cash generated by the Company before any payments to capital providers. Free cash flow is determined from net cash provided by (used in) operating activities adjusted for capital expenditures, excluding expansion capital, proceeds from asset sales, cash interest expense and interest income. Free cash flow is not defined by U.S. GAAP and is not a substitute for net cash provided by operating activities.

Note (A): Net cash provided by (used in) operating activities is affected by changes in our assets and liabilities and the amounts we pay in cash for our drydocks and vessel surveys as illustrated in the following table:

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2021			2021			2021			2020			2020
Cash provided by (used in) changes in assets and liabilities, excluding drydock payments	$	2,586			7,066			9,921			(4,915	)		18,858
Cash paid for deferred drydock and survey costs		(10,617	)		(4,049	)		(2,722	)		(3,772	)		(535	)
Total sources (uses) of cash for changes in assets and liabilities	$	(8,031	)		3,017			7,199			(8,687	)		18,323

Contacts

Tidewater Inc.

West Gotcher

Vice President,

Finance and Investor Relations

+1.713.470.5285

SOURCE: Tidewater Inc.