ex_344968.htm

EX-99.1 2 ex_344968.htm EXHIBIT 99.1 ex_344968.htm

Exhibit 99.1

Tidewater Inc.

842 West Sam Houston Parkway North, Suite 400

Houston, TX 77024, USA

+1.713.470.5300

Tidewater Reports Results for the Three and Twelve Months Ending December 31, 2021

HOUSTON, March 9, 2022 - Tidewater Inc. (NYSE:TDW) announced today revenue for the three and twelve months ending December 31, 2021, of $105.2 million and $371.0 million, respectively, compared with $91.9 million and $397.0 million, respectively, for the three and twelve months ending December 31, 2020. Tidewater's net losses for the three and twelve months ending December 31, 2021, were $37.9 million ($0.92 per share) and $129.0 million ($3.14 per share), respectively, compared with $29.2 million ($0.72 per share) and $196.2 million ($4.86 per share), respectively, for the three and twelve months ending December 31, 2020. Included in the net losses for the three and twelve months ending December 31, 2021 were impairment charges related to assets held for sale, affiliate credit loss expense, inventory obsolescence, loss on debt extinguishment and severance expenses totaling $26.2 million and $28.4 million, respectively. Excluding these costs, we would have reported a net loss for the three months ending December 31, 2021 of $11.7 million ($0.28 per common share) and a net loss for the twelve months ending December 31, 2021 of $100.6 million ($2.45 per common share). Included in the net losses for the three and twelve months ending December 31, 2020 were impairment charges related to assets held for sale, affiliate credit losses, affiliate guarantee obligation, inventory obsolescence and severance expenses totaling $6.2 million and $130.6 million, respectively. Excluding these costs, we would have reported a net loss for the three months ending December 31, 2020 of $23.1 million ($0.57 per common share) and a net loss for the twelve months ending December 31, 2020 of $65.6 million ($1.63 per common share).

Quintin Kneen, Tidewater’s President and Chief Executive Officer, commented, “After a strong fourth quarter of 2021 supported by improving global industry fundamentals, I am excited to announce that we have simultaneously announced in a separate release an agreement to acquire Swire Pacific Offshore, a leading global owner of 50 OSVs with a significant presence in West Africa, Southeast Asia and the Middle East. This acquisition adds a significant number of newer, larger PSVs and AHTSs to our fleet, provides for meaningful synergy opportunities, maintains balance sheet strength and liquidity, and better positions Tidewater to increase earnings and free cash flow generation from the improving offshore supply vessel market.

“In the fourth quarter of 2021, revenue increased 13.8% over the third quarter, driven by six additional vessels working during the quarter as well as increases in the global average day rate and global utilization. The global average day rate moved up approximately $300 per day, driven by improvements in the Americas and West Africa regions, and the slight global utilization increase was driven by improvements in the Middle East region.

“Since the first quarter of 2021, the low point in the pandemic driven portion of the offshore downturn that began in 2014, quarterly revenue increased 26.0%, and recurring vessel level cash gross margin increased from 24.7% to 29.1%. This substantial margin improvement is a function of an improving vessel supply and demand balance, a reduction in the pandemic cost burdens and a reduction in stacked vessel costs.

“The fourth quarter of 2021 demonstrated noteworthy consolidated revenue growth, margin expansion and average day rate improvement in a quarter in which typical seasonal factors lower the overall results, which reflects the fundamental improvements taking place in our industry.

“From a geographic perspective, all of our operating regions saw sequential quarterly revenue growth, with our West Africa and Americas regions up 14.5% and 13.5%, respectively. In West Africa, the revenue improvement, which has begun to rebound from the pandemic, was driven by the increase in average active vessel count of 3, and an increase in the average day rate of $490 per day, or 5.7%. In the Americas, the revenue improvement was driven by an increase in the average active vessel count of 1 and an $861 per day, or 6.3%, increase in the average day rate.

“Complementing the revenue increases in West Africa, vessel operating margin in the region increased 7.2 percentage points to 31.6%. Also in West Africa, during the first quarter of 2022 we bought our partner’s 51% ownership stake in our Angolan joint venture. This transaction will allow us to consolidate this business going forward and enable us to grow our West Africa operations from Angola as the recovery there continues to unfold.

“During the fourth quarter, we closed on the previously announced $175.0 million senior secured notes issuance as well as a new $25.0 million senior secured revolving credit facility. In addition, we established a $30.0 million “at-the-market” (“ATM”) equity issuance facility, which we established for the principal purpose of repurchasing Jones Act Warrants from time to time. At the end of the fourth quarter, there were no outstanding borrowings under the revolving credit facility and no ATM shares were issued or Jones Act Warrants repurchased during the quarter. We ended the year with $154.3 million of cash which includes $4.0 million of long-term restricted cash and total liquidity of $179.3 million inclusive of the availability under our revolving credit facility.

“As we look forward into 2022, our conviction continues to build around the fundamental and long-term improvements taking shape in our industry and for our business. The factors that drove the improvement in the fourth quarter are in their initial stages of development and we continue to see these factors driving demand for our business through the remainder of 2022 and beyond. The pace of tendering activity and capital spending increases by the global E&P industry, sustained by consistently strong and resilient commodity prices, continue to support a strengthening demand outlook. Additionally, vessel supply continues to tighten, which has been evident in the large vessel classes over the past few quarters, and is now also reflected by the quickly reducing supply of easy-to-reactivate ships in the mid-sized vessel classes. Furthermore, we remain encouraged by the pricing discipline our industry is exhibiting on a global basis. While the first quarter is typically the slowest of the year due to seasonality, the combination of the fundamental supply and demand factors described supports our view that 2022 will yield significantly improved operational and financial results.”

In addition to the number of outstanding shares, as of December 31, 2021, the company also has the following in the money warrants.

Common shares outstanding			41,307,617
New Creditor Warrants (strike price $0.001 per common share)			635,663
GulfMark Creditor Warrants (strike price $0.01 per common share)			559,125
Total			42,502,405

Tidewater will hold a conference call to discuss results for the three and twelve-month periods ending December 31, 2021 on March 9, 2022, at 8:00 a.m. Central Time. Investors and interested parties may listen to the earnings conference call via telephone by calling +1.844.200.6205 if calling from the U.S. or Canada (+1.929.526.1599 if calling from outside the U.S.) and provide Access Code: 568379 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 March 9, 2022 and will continue until 11:59 p.m. Central Time on April 9, 2022. To access the replay, visit the Investor Relations section of Tidewater’s website at investor.tdw.com

The conference call will contain forward-looking statements in addition to statements of historical fact. The actual achievement of any forecasted results or the unfolding of future economic or business developments in a way anticipated or projected by the company involves numerous risks and uncertainties that may cause the company’s actual performance to be materially different from that stated or implied in the forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the oilfield service industry and other factors discussed within the “Risk Factors” section of Tidewater’s most recent Forms 10-Q and 10-K.

Tidewater owns and operates one of the largest fleet of offshore support vessels in the industry, with more than 60 years of experience supporting offshore energy exploration and production activities worldwide.

Financial information is displayed beginning on the next page.

The financial statements and supplementary information presented in this press release were not audited. This press release presents extracts from the Consolidated Balance Sheets at December 31,2021 and 2020 as well as the Consolidated Statements of Operations, Consolidated Statements of Equity and Consolidated Statements of Cash Flows for the twelve months ended December 31, 2021 and 2020 that are drawn from the December 31, 2021 audited financial statements of Tidewater, Inc. All per-share amounts are stated on a diluted basis.

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, except per share data)

	Three Months Ended						Twelve Months Ended
	December 31, 2021			December 31, 2020			December 31, 2021			December 31, 2020
Revenues:
Vessel revenues	$	100,428		$	87,830		$	361,569		$	386,174
Other operating revenues		4,747			4,029			9,464			10,864
Total revenues		105,175			91,859			371,033			397,038
Costs and expenses:
Vessel operating costs		71,187			63,397			261,814			268,780
Costs of other operating revenues		228			342			2,231			3,405
General and administrative		17,641			16,992			68,516			73,447
Depreciation and amortization		28,288			30,681			114,544			116,709
Long-lived asset impairments and other		13,476			6,475			15,643			74,109
Affiliate credit loss impairment expense (credit)		1,400			(600	)		400			52,981
Affiliate guarantee obligation		—			—			—			2,000
(Gain) loss on asset dispositions, net		(53	)		(80	)		2,901			(7,591	)
Total costs and expenses		132,167			117,207			466,049			583,840
Operating loss		(26,992	)		(25,348	)		(95,016	)		(186,802	)
Other income (expense):
Foreign exchange gain (loss)		582			(2,880	)		(369	)		(5,245	)
Equity in net earnings (losses) of unconsolidated companies		(1,625	)		164			(3,322	)		164
Dividend income from unconsolidated companies		—			—			—			17,150
Interest income and other, net		1,426			144			1,605			1,228
Loss on early extinguishment of debt		(11,100	)		—			(11,100	)		—
Interest and other debt costs, net		(3,417	)		(5,984	)		(15,583	)		(24,156	)
Total other expense		(14,134	)		(8,556	)		(28,769	)		(10,859	)
Loss before income taxes		(41,126	)		(33,904	)		(123,785	)		(197,661	)
Income tax (benefit) expense		(3,047	)		(4,477	)		5,875			(965	)
Net loss		(38,079	)		(29,427	)		(129,660	)		(196,696	)
Less: Net loss attributable to noncontrolling interests		(145	)		(180	)		(691	)		(454	)
Net loss attributable to Tidewater Inc.	$	(37,934	)	$	(29,247	)	$	(128,969	)	$	(196,242	)
Basic loss per common share	$	(0.92	)	$	(0.72	)	$	(3.14	)	$	(4.86	)
Diluted loss per common share	$	(0.92	)	$	(0.72	)	$	(3.14	)	$	(4.86	)
Weighted average common shares outstanding		41,280			40,604			41,009			40,355
Dilutive effect of stock options and restricted stock		—			—			—			—
Adjusted weighted average common shares		41,280			40,604			41,009			40,355

TIDEWATER INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands, except share and par value data)

	December 31, 2021			December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	149,037		$	149,933
Restricted cash		1,240			2,079
Trade and other receivables, less allowance for credit losses of $1,948 and $1,516 as of December 31, 2021 and 2020, respectively		86,503			112,623
Due from affiliates, less allowance for credit losses of $72,456 and $71,800 as of December 31, 2021 and 2020, respectively		70,134			62,050
Marine operating supplies		12,606			15,876
Assets held for sale		14,421			34,396
Prepaid expenses and other current assets		8,731			11,692
Total current assets		342,672			388,649
Net properties and equipment		688,040			780,318
Deferred drydocking and survey costs		40,734			56,468
Other assets		24,334			25,742
Total assets	$	1,095,780		$	1,251,177

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	20,788		$	16,981
Accrued costs and expenses		51,734			52,422
Due to affiliates		61,555			53,194
Current portion of long-term debt		—			27,797
Other current liabilities		23,865			32,785
Total current liabilities		157,942			183,179
Long-term debt		167,885			164,934
Other liabilities and deferred credits		68,184			79,792

Commitments and contingencies

Equity:
Common stock		41			41
Additional paid-in-capital		1,376,494			1,371,809
Accumulated deficit		(677,900	)		(548,931	)
Accumulated other comprehensive loss		2,668			(804	)
Total stockholders' equity		701,303			822,115
Noncontrolling interests		466			1,157
Total equity		701,769			823,272
Total liabilities and equity	$	1,095,780		$	1,251,177

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In Thousands)

	Three Months Ended						Twelve Months Ended
	December 31, 2021			December 31, 2020			December 31, 2021			December 31, 2020
Net loss	$	(38,079	)	$	(29,427	)	$	(129,660	)	$	(196,696	)
Other comprehensive income (loss):
Change in supplemental executive retirement plan pension liability, net of tax of $0, $0, $0 and $0, respectively		(763	)		(2,011	)		(763	)		(2,309	)
Change in pension plan minimum liability, net of tax of $0, $0, $0, and $0, respectively		4,720			101			4,235			1,741
Total comprehensive loss	$	(34,122	)	$	(31,337	)	$	(126,188	)	$	(197,264	)

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

	Twelve Months			Twelve Months
	Ended			Ended
	December 31, 2021			December 31, 2020
Operating activities:
Net loss	$	(129,660	)	$	(196,696	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		73,223			73,030
Amortization of deferred drydocking and survey costs		41,321			43,679
Amortization of debt premiums and discounts		3,171			3,961
Provision for deferred income taxes		(1,287	)		1,224
(Gain) loss on asset dispositions, net		2,901			(7,591	)
Affiliate credit loss impairment expense		400			52,981
Affiliate guarantee obligation		—			2,000
Long-lived asset impairments and other		15,643			74,109
Loss on debt extinguishment		11,100			—
Stock-based compensation expense		5,638			5,117
Changes in operating assets and liabilities, net:
Trade and other receivables		26,120			(2,606	)
Changes in due to/from affiliate, net		(123	)		11,949
Accounts payable		3,807			(10,520	)
Accrued expenses		(688	)		(17,551	)
Deferred drydocking and survey costs		(27,282	)		(33,271	)
Other, net		(9,278	)		4,171
Net cash provided by operating activities		15,006			3,986
Cash flows from investing activities:
Proceeds from sales of assets		34,010			38,296
Additions to properties and equipment		(8,951	)		(14,900	)
Net cash provided by investing activities		25,059			23,396
Cash flows from financing activities:
Issuance of long-term debt		172,375			—
Principal payments on long-term debt		(198,918	)		(98,080	)
Debt extinguishment premium		(7,781	)		—
Debt issuance and modification costs		(5,737	)		—
Tax on share-based award		(953	)		(828	)
Other		—			(857	)
Net cash used in financing activities		(41,014	)		(99,765	)
Net change in cash, cash equivalents and restricted cash		(949	)		(72,383	)
Cash, cash equivalents and restricted cash at beginning of period		155,225			227,608
Cash, cash equivalents and restricted cash at end of period	$	154,276		$	155,225

Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest, net of amounts capitalized	$	13,747		$	21,235
Income taxes		19,013			13,018

Note: Cash, cash equivalents and restricted cash at December 31, 2021 and 2020 includes $4.0 million and $3.2 million, respectively, in long-term restricted cash.

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(In Thousands)

	Twelve 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		—		—			(128,969	)		3,472			(691	)		(126,188	)
Amortization of share based awards		—		4,685			—			—			—			4,685
Balance at December 31, 2021	$	41		1,376,494			(677,900	)		2,668			466		$	701,769


Balance at December 31, 2019	$	40		1,367,521			(352,526	)		(236	)		1,611		$	1,016,410
Total comprehensive loss		—		—			(196,242	)		(568	)		(454	)		(197,264	)
Adoption of credit loss accounting standard		—		—			(163	)		—			—			(163	)
Issuance of common stock		1		(1	)		—			—			—			—
Amortization of share based awards		—		4,289			—			—			—			4,289
Balance at December 31, 2020	$	41		1,371,809			(548,931	)		(804	)		1,157		$	823,272

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

(In Thousands)	Three Months Ended								Twelve Months Ended
	December 31, 2021				December 31, 2020				December 31, 2021				December 31, 2020
Vessel revenues:
Americas	$	27,882	28	%	$	32,068	36	%	$	102,151	28	%	$	126,676	33	%
Middle East/Asia Pacific		26,862	27	%		25,042	29	%		102,537	29	%		97,133	25	%
Europe/Mediterranean		22,501	22	%		15,775	18	%		80,914	22	%		83,602	22	%
West Africa		23,183	23	%		14,945	17	%		75,967	21	%		78,763	20	%
Total vessel revenues	$	100,428	100	%	$	87,830	100	%	$	361,569	100	%	$	386,174	100	%
Vessel operating costs:
Crew costs	$	39,715	40	%	$	36,760	42	%	$	148,171	41	%	$	156,624	41	%
Repair and maintenance		11,502	11	%		8,027	9	%		40,970	11	%		31,213	8	%
Insurance		517	1	%		1,447	2	%		1,815	1	%		7,195	2	%
Fuel, lube and supplies		6,405	6	%		6,221	7	%		25,557	7	%		29,113	7	%
Other		13,048	13	%		10,942	12	%		45,301	12	%		44,635	12	%
Total vessel operating costs		71,187	71	%		63,397	72	%		261,814	72	%		268,780	70	%
Vessel operating margin (A)	$	29,241	29	%	$	24,433	28	%	$	99,755	28	%	$	117,394	30	%

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:

(In Thousands)	Three Months Ended										Twelve Months Ended
	December 31, 2021					December 31, 2020					December 31, 2021					December 31, 2020
Vessel operating profit (loss):
Americas	$	(2,909	)	(3	)%	$	1,496		2	%	$	(11,270	)	(3	)%	$	4,944		1	%
Middle East/Asia Pacific		1,126		1	%		(3,456	)	(4	)%		(1,174	)	(0	)%		(5,935	)	(1	)%
Europe/Mediterranean		(4,095	)	(4	)%		(4,543	)	(5	)%		(16,968	)	(5	)%		(8,629	)	(2	)%
West Africa		(1,139	)	(1	)%		(8,493	)	(9	)%		(16,985	)	(5	)%		(27,508	)	(7	)%
Other operating profit		4,519		4	%		3,686		4	%		7,233		2	%		7,458		2	%
		(2,498	)	(3	)%		(11,310	)	(12	)%		(39,164	)	(11	)%		(29,670	)	(7	)%

Corporate expenses (A)		(9,671	)	(9	)%		(8,243	)	(9	)%		(36,908	)	(10	)%		(35,633	)	(9	)%
Gain (loss) on asset dispositions, net		53		0	%		80		0	%		(2,901	)	(1	)%		7,591		2	%
Affiliate credit loss impairment expense		(1,400	)	(1	)%		600		0	%		(400	)	(0	)%		(52,981	)	(13	)%
Affiliate guarantee obligation		—		0	%		—		0	%		—		0	%		(2,000	)	(1	)%
Long-lived asset impairments and other		(13,476	)	(13	)%		(6,475	)	(7	)%		(15,643	)	(4	)%		(74,109	)	(19	)%
Operating loss	$	(26,992	)	(26	)%	$	(25,348	)	(28	)%	$	(95,016	)	(26	)%	$	(186,802	)	(47	)%

Note (A): General and administrative expenses for the three and twelve months ended December 31, 2021 include stock-based compensation of $1.4 million and $5.6 million, respectively. General and administrative expenses for the three and twelve months ended December 31, 2020 includes stock-based compensation of $1.2 million and $5.1 million, respectively. In addition, vessel operating and general and administrative costs for the three and twelve months ended December 31, 2021 include $0.2 million and $1.2 million, of one-time restructuring and integration related costs, respectively. Vessel operating and general and administrative expenses for the three and twelve months ended December 31, 2020 include $0.3 million and $1.5 million, in one-time restructuring and integration related costs, respectively.

TIDEWATER INC.

CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) – QUARTERLY DATA

(In Thousands, except per share data)

	Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2021			2021			2021			2021			2020
Revenues:
Vessel revenues	$	100,428		$	91,634		$	88,514		$	80,993		$	87,830
Other operating revenues		4,747			767			1,439			2,511			4,029
Total revenues		105,175			92,401			89,953			83,504			91,859
Costs and expenses:
Vessel operating costs (A)		71,187			65,344			64,263			61,020			63,397
Costs of other operating revenue		228			355			581			1,067			342
General and administrative (A)		17,641			18,045			16,787			16,043			16,992
Depreciation and amortization		28,288			27,980			28,549			29,727			30,681
Long-lived asset impairments and other		13,476			2,167			—			—			6,475
Affiliate credit loss impairment expense (credit)		1,400			—			(1,000	)		—			(600	)
(Gain) loss on asset dispositions, net		(53	)		74			932			1,948			(80	)
Total operating costs and expenses		132,167			113,965			110,112			109,805			117,207
Operating loss		(26,992	)		(21,564	)		(20,159	)		(26,301	)		(25,348	)
Other income (expense):
Foreign exchange gain (loss)		582			(523	)		422			(850	)		(2,880	)
Equity in net earnings (losses) of unconsolidated companies		(1,625	)		100			52			(1,849	)		164
Interest income and other, net		1,426			148			8			23			144
Loss on early extinguishment of debt		(11,100	)		—			—			—			—
Interest and other debt costs, net		(3,417	)		(3,681	)		(3,944	)		(4,541	)		(5,984	)
Total other expense		(14,134	)		(3,956	)		(3,462	)		(7,217	)		(8,556	)
Loss before income taxes		(41,126	)		(25,520	)		(23,621	)		(33,518	)		(33,904	)
Income tax (benefit) expense		(3,047	)		887			6,026			2,009			(4,477	)
Net loss		(38,079	)		(26,407	)		(29,647	)		(35,527	)		(29,427	)
Net loss attributable to noncontrolling interests		(145	)		(149	)		(185	)		(212	)		(180	)
Net loss attributable to Tidewater Inc.	$	(37,934	)	$	(26,258	)	$	(29,462	)	$	(35,315	)	$	(29,247	)
Basic loss per common share	$	(0.92	)	$	(0.64	)	$	(0.72	)	$	(0.87	)	$	(0.72	)
Diluted loss per common share	$	(0.92	)	$	(0.64	)	$	(0.72	)	$	(0.87	)	$	(0.72	)
Weighted average common shares outstanding		41,280			41,132			40,899			40,716			40,604
Dilutive effect of stock options and restricted stock		—			—			—			—			—
Adjusted weighted average common shares		41,280			41,132			40,899			40,716			40,604
Vessel operating margin	$	29,241		$	26,290		$	24,251		$	19,973		$	24,433


Note (A) One-time restructuring and integration related costs	$	221		$	112		$	795		$	103		$	291

TIDEWATER INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Thousands)

	December 31,			September 30,			June 30,			March 31,			December 31,
	2021			2021			2021			2021			2020
ASSETS
Current assets:
Cash and cash equivalents	$	149,037		$	127,414		$	131,157		$	131,858		$	149,933
Restricted cash		1,240			24,092			20,284			9,061			2,079
Trade and other receivables, net		86,503			86,015			90,229			99,865			112,623
Due from affiliates, less allowances		70,134			68,217			64,922			62,474			62,050
Marine operating supplies		12,606			13,335			15,404			15,676			15,876
Assets held for sale		14,421			17,891			17,214			31,214			34,396
Prepaid expenses and other current assets		8,731			13,129			15,953			13,594			11,692
Total current assets		342,672			350,093			355,163			363,742			388,649
Net properties and equipment		688,040			709,324			731,659			754,707			780,318
Deferred drydocking and survey costs		40,734			40,510			40,372			46,648			56,468
Other assets		24,334			23,146			24,539			23,833			25,742
Total assets	$	1,095,780		$	1,123,073		$	1,151,733		$	1,188,930		$	1,251,177

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	20,788		$	18,042		$	16,189		$	14,622		$	16,981
Accrued costs and expenses		51,734			52,133			50,532			48,466			52,422
Due to affiliates		61,555			59,571			59,759			56,356			53,194
Current portion of long-term debt		—			140,995			7,355			18,201			27,797
Other current liabilities		23,865			29,139			28,825			35,003			32,785
Total current liabilities		157,942			299,880			162,660			172,648			183,179
Long-term debt		167,885			14,139			148,612			148,337			164,934
Other liabilities and deferred credits		68,184			74,442			80,723			79,234			79,792


Equity:
Common stock		41			41			41			41			41
Additional paid-in-capital		1,376,494			1,375,215			1,373,727			1,372,846			1,371,809
Accumulated deficit		(677,900	)		(639,966	)		(613,708	)		(584,246	)		(548,931	)
Accumulated other comprehensive income (loss)		2,668			(1,289	)		(1,082	)		(875	)		(804	)
Total stockholders' equity		701,303			734,001			758,978			787,766			822,115
Noncontrolling interests		466			611			760			945			1,157
Total equity		701,769			734,612			759,738			788,711			823,272
Total liabilities and equity	$	1,095,780		$	1,123,073		$	1,151,733		$	1,188,930		$	1,251,177

Supplemental information
Due from related parties, net of due to related parties:
Sonatide (Angola)	$	8,579		$	8,646		$	5,163		$	6,118		$	8,856

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

(In Thousands)

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

Americas fleet:
Deepwater	$	21,658	$	18,961	$	17,796	$	19,876	$	25,706
Towing-supply		5,062		4,440		4,535		4,817		4,603
Other		1,162		1,163		1,150		1,531		1,759
Total		27,882		24,564		23,481		26,224		32,068
Middle East/Asia Pacific fleet:
Deepwater		17,311		17,292		17,264		15,931		16,822
Towing-supply		9,551		8,341		8,364		8,483		8,220
Total		26,862		25,633		25,628		24,414		25,042
Europe/Mediterranean fleet:
Deepwater		22,344		21,037		22,293		14,588		15,621
Towing-supply		—		—		11		—		—
Other		157		160		163		161		154
Total		22,501		21,197		22,467		14,749		15,775
West Africa fleet:
Deepwater		13,658		10,967		8,814		7,909		6,237
Towing-supply		5,807		5,474		5,564		4,879		5,202
Other		3,718		3,799		2,560		2,818		3,506
Total		23,183		20,240		16,938		15,606		14,945
Worldwide fleet:
Deepwater		74,971		68,257		66,167		58,304		64,386
Towing-supply		20,420		18,255		18,474		18,179		18,025
Other		5,037		5,122		3,873		4,510		5,419
Total	$	100,428	$	91,634	$	88,514	$	80,993	$	87,830

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

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

Americas fleet:
Deepwater		25			25			27			29			32
Towing-supply		8			8			8			8			10
Other		2			3			3			3			3
Total		35			36			38			40			45
Stacked vessels		(9	)		(11	)		(13	)		(12	)		(15	)
Active vessels		26			25			25			28			30
Middle East/Asia Pacific fleet:
Deepwater		20			20			20			21			21
Towing-supply		18			18			18			20			22
Total		38			38			38			41			43
Stacked vessels		(1	)		(1	)		(1	)		(3	)		(3	)
Active vessels		37			37			37			38			40
Europe/Mediterranean fleet:
Deepwater		28			28			29			31			31
Total		28			28			29			31			31
Stacked vessels		(5	)		(7	)		(8	)		(14	)		(16	)
Active vessels		23			21			21			17			15
West Africa fleet:
Deepwater		18			19			20			20			20
Towing-supply		10			11			11			12			13
Other		24			25			26			26			23
Total		52			55			57			58			56
Stacked vessels		(13	)		(19	)		(22	)		(25	)		(26	)
Active vessels		39			36			35			33			30
Worldwide fleet:
Deepwater		91			92			96			101			104
Towing-supply		36			37			37			40			45
Other		26			28			29			29			26
Total		153			157			162			170			175
Stacked vessels		(28	)		(38	)		(44	)		(54	)		(60	)
Active vessels		125			119			118			116			115

Total active		125			119			118			116			115
Total stacked		28			38			44			54			60
Total joint venture		3			3			3			3			3
Total		156			160			165			173			178

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

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

Americas fleet:
Deepwater		2,269		2,300		2,497		2,627		2,944
Towing-supply		736		736		728		720		898
Other		184		244		273		270		276
Total		3,189		3,280		3,498		3,617		4,118
Middle East/Asia Pacific fleet:
Deepwater		1,840		1,840		1,820		1,863		1,932
Towing-supply		1,656		1,656		1,667		1,822		2,032
Total		3,496		3,496		3,487		3,685		3,964
Europe/Mediterranean fleet:
Deepwater		2,607		2,612		2,672		2,756		2,852
Total		2,607		2,612		2,672		2,756		2,852
West Africa fleet:
Deepwater		1,656		1,718		1,853		1,827		1,840
Towing-supply		920		1,011		1,001		1,084		1,196
Other		2,208		2,328		2,366		2,340		2,095
Total		4,784		5,057		5,220		5,251		5,131
Worldwide fleet:
Deepwater		8,372		8,470		8,842		9,073		9,568
Towing-supply		3,312		3,403		3,396		3,626		4,126
Other		2,392		2,572		2,639		2,610		2,371
Total		14,076		14,445		14,877		15,309		16,065

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

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

Americas fleet:
Deepwater		621		814		889		923		1,105
Towing-supply		92		92		91		90		189
Other		92		152		182		90		92
Total		805		1,058		1,162		1,103		1,386
Middle East/Asia Pacific fleet:
Deepwater		92		92		91		90		92
Towing-supply		—		—		29		180		177
Total		92		92		120		270		269
Europe/Mediterranean fleet:
Deepwater		474		641		766		1,238		1,448
Total		474		641		766		1,238		1,448
West Africa fleet:
Deepwater		307		537		852		1,104		1,288
Towing-supply		382		551		516		544		644
Other		506		655		637		599		417
Total		1,195		1,743		2,005		2,247		2,349
Worldwide fleet:
Deepwater		1,494		2,084		2,598		3,355		3,933
Towing-supply		474		643		636		814		1,010
Other		598		807		819		689		509
Total		2,566		3,534		4,053		4,858		5,452

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

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

Americas fleet:
Deepwater		1,648		1,486		1,608		1,704		1,839
Towing-supply		644		644		637		630		709
Other		92		92		91		180		184
Total		2,384		2,222		2,336		2,514		2,732
Middle East/Asia Pacific fleet:
Deepwater		1,748		1,748		1,729		1,773		1,840
Towing-supply		1,656		1,656		1,638		1,642		1,855
Total		3,404		3,404		3,367		3,415		3,695
Europe/Mediterranean fleet:
Deepwater		2,133		1,971		1,906		1,518		1,404
Total		2,133		1,971		1,906		1,518		1,404
West Africa fleet:
Deepwater		1,349		1,181		1,001		723		552
Towing-supply		538		460		485		540		552
Other		1,702		1,673		1,729		1,741		1,678
Total		3,589		3,314		3,215		3,004		2,782
Worldwide fleet:
Deepwater		6,878		6,386		6,244		5,718		5,635
Towing-supply		2,838		2,760		2,760		2,812		3,116
Other		1,794		1,765		1,820		1,921		1,862
Total		11,510		10,911		10,824		10,451		10,613

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

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

Americas fleet:
Deepwater		57.0	%		53.0	%		45.6	%		55.6	%		53.2	%
Towing-supply		71.4			64.9			76.3			83.2			67.7
Other		50.0			37.7			33.3			55.7			66.7
Total		59.9	%		54.5	%		51.0	%		61.1	%		57.2	%
Middle East/Asia Pacific fleet:
Deepwater		85.4	%		86.2	%		88.3	%		80.1	%		78.2	%
Towing-supply		94.2			83.7			82.5			75.6			62.5
Total		89.6	%		85.0	%		85.5	%		77.9	%		70.2	%
Europe/Mediterranean fleet:
Deepwater		72.4	%		68.3	%		64.7	%		44.7	%		44.7	%
Total		72.4	%		68.3	%		64.7	%		44.7	%		44.7	%
West Africa fleet:
Deepwater		65.7	%		54.6	%		42.3	%		36.2	%		27.2	%
Towing-supply		50.0			40.0			38.4			30.1			30.8
Other		45.9			43.9			34.6			34.4			42.3
Total		53.5	%		46.7	%		38.1	%		34.1	%		34.2	%
Worldwide fleet:
Deepwater		69.7	%		65.2	%		59.4	%		53.4	%		50.7	%
Towing-supply		76.9			66.6			68.2			63.5			54.4
Other		46.2			43.3			34.5			36.6			45.2
Total		67.4	%		61.7	%		57.0	%		52.9	%		50.9	%

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

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

Americas fleet:
Deepwater		78.4	%		82.0	%		70.7	%		85.7	%		85.1	%
Towing-supply		81.5			74.1			87.2			95.1			85.7
Other		100.0			100.0			100.0			83.6			100.0
Total		80.1	%		80.4	%		76.4	%		87.9	%		86.3	%
Middle East/Asia Pacific fleet:
Deepwater		89.9	%		90.8	%		92.9	%		84.2	%		82.1	%
Towing-supply		94.2			83.7			84.0			83.9			68.5
Total		92.0	%		87.3	%		88.6	%		84.0	%		75.3	%
Europe/Mediterranean fleet:
Deepwater		88.5	%		90.5	%		90.6	%		81.3	%		90.9	%
Total		88.5	%		90.5	%		90.6	%		81.3	%		90.9	%
West Africa fleet:
Deepwater		80.7	%		79.4	%		78.3	%		91.4	%		90.8	%
Towing-supply		85.5			87.9			79.2			60.4			66.7
Other		59.5			61.1			47.4			46.2			52.9
Total		71.4	%		71.3	%		61.8	%		59.6	%		63.1	%
Worldwide fleet:
Deepwater		84.9	%		86.5	%		84.2	%		84.8	%		86.1	%
Towing-supply		89.7			82.2			83.9			81.9			72.1
Other		61.6			63.1			50.0			49.7			57.5
Total		82.4	%		81.6	%		78.4	%		77.6	%		77.0	%

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

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

Americas fleet:
Deepwater	$	16,760	$	15,568	$	15,646	$	13,608	$	16,416
Towing-supply		9,638		9,298		8,162		8,040		7,576
Other		12,644		12,640		12,634		10,179		9,559
Total		14,603		13,742		13,162		11,865		13,602
Middle East/Asia Pacific fleet:
Deepwater		11,021		10,899		10,743		10,670		11,129
Towing-supply		6,121		6,018		6,080		6,159		6,471
Total		8,580		8,623		8,593		8,506		9,002
Europe/Mediterranean fleet:
Deepwater		11,834		11,800		12,905		11,829		12,368
Total		11,917		11,890		13,005		11,960		12,368
West Africa fleet:
Deepwater		12,553		11,700		11,242		11,972		12,449
Towing-supply		12,624		13,536		14,480		14,967		14,136
Other		3,669		3,717		3,124		3,501		3,952
Total		9,052		8,562		8,521		8,711		8,510
Worldwide fleet:
Deepwater		12,840		12,355		12,589		12,028		13,265
Towing-supply		8,022		8,049		7,978		7,896		8,026
Other		4,558		4,598		4,253		4,721		5,059
Total	$	10,583	$	10,288	$	10,435	$	9,993	$	10,749

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

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

(In Thousands)

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

Americas
Vessel revenues	$	27,882		$	24,564		$	23,481		$	26,224		$	32,068

Vessel operating costs:
Crew costs		11,080			8,535			11,132			10,594			12,795
Repair and maintenance		2,487			2,951			2,192			2,714			2,065
Insurance		161			219			(30	)		200			402
Fuel, lube and supplies		2,019			2,028			1,952			1,774			1,822
Other		4,347			3,008			2,972			1,980			2,306
Total vessel operating costs		20,094			16,741			18,218			17,262			19,390

Vessel operating margin ($)		7,788			7,823			5,263			8,962			12,678
Vessel operating margin (%)		27.9	%		31.8	%		22.4	%		34.2	%		39.5	%

Americas - Select operating statistics
Average vessels - Total fleet		35			36			38			40			45
Utilization - Total fleet		59.9	%		54.5	%		51.0	%		61.1	%		57.2	%

Average vessels - Active fleet		26			25			25			28			30
Utilization - Active fleet		80.1	%		80.4	%		76.4	%		87.9	%		86.3	%

Average day rates	$	14,603		$	13,742		$	13,162		$	11,865		$	13,602

Vessels commencing drydocks		5			4			3			1			1


Deferred drydocking and survey costs - beginning balance	$	13,124		$	12,919		$	11,813		$	15,440		$	17,774
Cash paid for deferred drydocking and survey costs		6,470			4,906			2,157			881			1,015
Amortization of deferred drydocking and survey costs		(2,909	)		(2,936	)		(2,753	)		(3,222	)		(3,349	)
Disposals, intersegment transfers and other		(415	)		(1,765	)		1,702			(1,286	)		—
Deferred drydocking and survey costs - ending balance	$	16,270		$	13,124		$	12,919		$	11,813		$	15,440

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

(In Thousands)

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

Middle East/Asia Pacific
Vessel revenues	$	26,862		$	25,633		$	25,628		$	24,414		$	25,042

Vessel operating costs:
Crew costs		9,710			9,950			9,910			9,639			9,982
Repair and maintenance		3,146			2,944			2,632			2,659			2,899
Insurance		203			60			37			(224	)		452
Fuel, lube and supplies		1,314			1,747			1,494			1,569			1,924
Other		3,167			3,334			2,692			2,959			3,532
Total vessel operating costs		17,540			18,035			16,765			16,602			18,789

Vessel operating margin ($)		9,322			7,598			8,863			7,812			6,253
Vessel operating margin (%)		34.7	%		29.6	%		34.6	%		32.0	%		25.0	%

Middle East/Asia Pacific - Select operating statistics
Average vessels - Total fleet		38			38			38			41			43
Utilization - Total fleet		89.6	%		85.0	%		85.5	%		77.9	%		70.2	%

Average vessels - Active fleet		37			37			37			38			40
Utilization - Active fleet		92.0	%		87.3	%		88.6	%		84.0	%		75.3	%

Average day rates	$	8,580		$	8,623		$	8,593		$	8,506		$	9,002

Vessels commencing drydocks		2			1			4			—			3


Deferred drydocking and survey costs - beginning balance	$	11,828		$	12,124		$	13,989		$	17,031		$	18,666
Cash paid for deferred drydocking and survey costs		327			2,441			1,354			72			1,447
Amortization of deferred drydocking and survey costs		(2,451	)		(2,669	)		(2,820	)		(3,114	)		(3,082	)
Disposals, intersegment transfers and other		—			(68	)		(399	)		—			—
Deferred drydocking and survey costs - ending balance	$	9,704		$	11,828		$	12,124		$	13,989		$	17,031

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

(In Thousands)

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

Europe/Mediterranean
Vessel revenues	$	22,501		$	21,197		$	22,467		$	14,749		$	15,775

Vessel operating costs:
Crew costs		11,235			10,541			10,519			9,022			8,179
Repair and maintenance		3,562			1,754			2,244			1,673			1,133
Insurance		38			208			(131	)		299			297
Fuel, lube and supplies		936			846			864			759			710
Other		1,919			1,926			1,803			1,707			1,214
Total vessel operating costs		17,690			15,275			15,299			13,460			11,533

Vessel operating margin ($)		4,811			5,922			7,168			1,289			4,242
Vessel operating margin (%)		21.4	%		27.9	%		31.9	%		8.7	%		26.9	%

Europe/Mediterranean - Select operating statistics
Average vessels - Total fleet		28			28			29			31			31
Utilization - Total fleet		72.4	%		68.3	%		64.7	%		44.7	%		44.7	%

Average vessels - Active fleet		23			21			21			17			15
Utilization - Active fleet		88.5	%		90.5	%		90.6	%		81.3	%		90.9	%

Average day rates	$	11,917		$	11,890		$	13,005		$	11,960		$	12,368

Vessels commencing drydocks		1			1			2			3			4


Deferred drydocking and survey costs - beginning balance	$	5,571		$	6,340		$	7,731		$	7,317		$	7,147
Cash paid for deferred drydocking and survey costs		93			892			162			2,067			1,710
Amortization of deferred drydocking and survey costs		(1,096	)		(1,316	)		(1,553	)		(1,653	)		(1,540	)
Disposals, intersegment transfers and other		415			(345	)		—			—			—
Deferred drydocking and survey costs - ending balance	$	4,983		$	5,571		$	6,340		$	7,731		$	7,317

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

(In Thousands)

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

West Africa
Vessel revenues	$	23,183		$	20,240		$	16,938		$	15,606		$	14,945

Vessel operating costs:
Crew costs		7,690			6,583			6,124			5,907			5,804
Repair and maintenance		2,307			2,848			2,466			2,391			1,930
Insurance		115			325			(13	)		348			296
Fuel, lube and supplies		2,136			2,130			2,231			1,758			1,765
Other		3,615			3,407			3,173			3,292			3,890
Total vessel operating costs		15,863			15,293			13,981			13,696			13,685

Vessel operating margin ($)		7,320			4,947			2,957			1,910			1,260
Vessel operating margin (%)		31.6	%		24.4	%		17.5	%		12.2	%		8.4	%

West Africa - Select operating statistics
Average vessels - Total fleet		52			55			57			58			56
Utilization - Total fleet		53.5	%		46.7	%		38.1	%		34.1	%		34.2	%

Average vessels - Active fleet		39			36			35			33			30
Utilization - Active fleet		71.4	%		71.3	%		61.8	%		59.6	%		63.1	%

Average day rates	$	9,052		$	8,562		$	8,521		$	8,711		$	8,510

Vessels commencing drydocks		3			3			2			—			—


Deferred drydocking and survey costs - beginning balance	$	9,987		$	8,989		$	13,115		$	16,680		$	20,388
Cash paid for deferred drydocking and survey costs		3,004			2,378			376			(298	)		(400	)
Amortization of deferred drydocking and survey costs		(3,214	)		(3,148	)		(3,199	)		(3,268	)		(3,294	)
Disposals, intersegment transfers and other		—			1,768			(1,303	)		1			(14	)
Deferred drydocking and survey costs - ending balance	$	9,777		$	9,987		$	8,989		$	13,115		$	16,680

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

(In Thousands)

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

Worldwide
Vessel revenues	$	100,428		$	91,634		$	88,514		$	80,993		$	87,830

Vessel operating costs:
Crew costs		39,715			35,609			37,685			35,162			36,760
Repair and maintenance		11,502			10,497			9,534			9,437			8,027
Insurance		517			812			(137	)		623			1,447
Fuel, lube and supplies		6,405			6,751			6,541			5,860			6,221
Other		13,048			11,675			10,640			9,938			10,942
Total vessel operating costs		71,187			65,344			64,263			61,020			63,397

Vessel operating margin ($)		29,241			26,290			24,251			19,973			24,433
Vessel operating margin (%)		29.1	%		28.7	%		27.4	%		24.7	%		27.8	%

Worldwide - Select operating statistics
Average vessels - Total fleet		153			157			162			170			175
Utilization - Total fleet		67.4	%		61.7	%		57.0	%		52.9	%		50.9	%

Average vessels - Active fleet		125			119			118			116			115
Utilization - Active fleet		82.4	%		81.6	%		78.4	%		77.6	%		77.0	%

Average day rates	$	10,583		$	10,288		$	10,435		$	9,993		$	10,749

Vessels commencing drydocks		11			9			11			4			8


Deferred drydocking and survey costs - beginning balance	$	40,510		$	40,372		$	46,648		$	56,468		$	63,975
Cash paid for deferred drydocking and survey costs		9,894			10,617			4,049			2,722			3,772
Amortization of deferred drydocking and survey costs		(9,670	)		(10,069	)		(10,325	)		(11,257	)		(11,265	)
Disposals, intersegment transfers and other		—			(410	)		—			(1,285	)		(14	)
Deferred drydocking and survey costs - ending balance	$	40,734		$	40,510		$	40,372		$	46,648		$	56,468

TIDEWATER INC.

OTHER FLEET AND FINANCIAL DATA

(In Thousands)

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

Net loss	$	(38,079	)	$	(26,407	)	$	(29,647	)	$	(35,527	)	$	(29,427	)

Interest and other debt costs		3,417			3,681			3,944			4,541			5,984
Income tax (benefit) expense		(3,047	)		887			6,026			2,009			(4,477	)
Depreciation		18,618			17,911			18,224			18,470			19,416
Amortization of deferred drydock and survey costs		9,670			10,069			10,325			11,257			11,265
EBITDA (A), (B), (C)		(9,421	)		6,141			8,872			750			2,761

Long-lived asset impairments and other		13,476			2,167			—			—			6,475
Affiliate credit loss impairment expense (credit)		1,400			—			(1,000	)		—			(600	)
Loss on early extinguishment of debt		11,100			—			—			—			—
One-time integration related costs		221			112			795			103			291
Adjusted EBITDA (A), (B), (C)	$	16,776		$	8,420		$	8,667		$	853		$	8,927

Note (A): EBITDA excludes interest and other debt costs, income tax expense, depreciation and amortization. Additionally, Adjusted EBITDA excludes impairment charges, affiliate credit loss impairment expense, loss on early extinguishment of debt and one-time integration related costs.

Note (B): EBITDA and Adjusted EBITDA for the three months ended December 31, 2021, and for each of the prior four quarters includes non-cash, stock-based compensation expense of $1,439, $1,523, $1,504, $1,172, and $1,158, respectively.

Note (C): EBITDA and Adjusted EBITDA for the three months ended December 31, 2021, and for each of the prior four quarters includes foreign exchange gains (losses) of $582, $(523), $422, $(850), and $(2,880), 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.

OTHER FLEET AND FINANCIAL DATA

(In Thousands)

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

Net cash provided by (used in) operating activities (A)	$	6,938		$	(2,499	)	$	4,851		$	5,716		$	2,180

Cash interest expense		3,664			3,055			3,282			3,746			5,066
Interest income and other		(1,426	)		(148	)		(8	)		(23	)		(144	)
Additions to property and equipment		(6,368	)		(722	)		(665	)		(1,196	)		(10,218	)
Expansion capital		—			—			—			—			5,300
Free cash flow before proceeds from asset sales		2,808			(314	)		7,460			8,243			2,184

Proceeds from asset sales		54			4,396			18,577			10,983			6,798

Free cash flow	$	2,862		$	4,082		$	26,037		$	19,226		$	8,982

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
	December 31,			September 30,			June 30,			March 31,			December 31,
	2021			2021			2021			2021			2020
Cash provided by (used in) changes in assets and liabilities, excluding drydock payments	$	265		$	2,586		$	7,066		$	9,921		$	(4,915	)
Cash paid for deferred drydock and survey costs		(9,894	)		(10,617	)		(4,049	)		(2,722	)		(3,772	)
Total sources (uses) of cash for changes in assets and liabilities	$	(9,629	)	$	(8,031	)	$	3,017		$	7,199		$	(8,687	)

Contacts

Tidewater Inc.

West Gotcher

Vice President,

Finance and Investor Relations

+1 713.470.5285

SOURCE: Tidewater Inc.