Market Overview

Tidewater Reports Results for the Three Months Ended March 31, 2020

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Tidewater Inc. (NYSE:TDW) announced today revenue for the three months ended March 31, 2020, of $116.4 million compared with $122.1 million for the three months ended March 31, 2019, and net losses for the same periods of $18.4 million (or $0.46 per common share) and $21.7 million (or $0.58 per common share), respectively. Excluding long-lived asset impairments and one-time expenses, net losses for the three months ended March 31, 2020 and 2019 were $8.1 million (or $0.20 per common share) and $18.0 million (or $0.48) per common share), respectively.

Quintin Kneen, Tidewater's President and Chief Executive Officer, commented, "For the first quarter, we achieved higher day rates in all regions, lower operating costs in all regions, consequently, higher operating margins in all regions, and we achieved this at the lowest general and administrative cost level we have ever attained. That was last quarter, but it already feels like it was years ago.

"Adjusted EBITDA for the quarter was $20 million, but free cash flow for the quarter was negative $15 million as we invested $25 million in drydocks during the quarter, as previously planned, and invested $18 million in working capital. We still anticipate being free cash flow positive for the year even with the sharp downturn in the business due to a higher liquidation of working capital as the business contracts and a significant reduction in spending on drydocks, which we now anticipate to be down $20 million, to $33 million for the year.

"Tidewater has always been dedicated to getting our employees home safe. Although this philosophy developed due to the inherently dangerous nature of offshore work, it has resulted in the ability to address worker health from the current pandemic as second nature to us. Our employees know how to take care of each other and themselves, and it has been humbling to observe since the crisis began how ingenious, brave, and focused our employees have remained through this difficult time.

"The combined impact of a significant decrease in hydrocarbon demand resulting from the actions to curb the COVID-19 pandemic and the inability of global hydrocarbon producers to commensurately curtail production has resulted in a significant oversupply of oil that will take many months to balance. Unlike the previous unpleasantness that began in 2014, contracts for offshore equipment, both rigs and boats, are this time cancelable over much shorter periods, and we have begun to see operators quickly exercise these shorter termination provisions around the world. These cancelations have resulted in a swift reduction in drilling activity, both onshore and offshore, and has swiftly reduced the demand for vessels once again.

"The long-term view on the demand for offshore hydrocarbons is still robust, and the underinvestment since 2014 has shrunk offshore production capacity to the point where we expect to see a resurgence in offshore activity in the next few years as demand recovers. Prior to the recent pullback, we were suggesting that it would be in 2021, and now we are focused on 2023.

"The team at Tidewater is mobilizing, in a virtual manner, to reduce the scale of our current operations to match the needs of the industry. Having just completed a significant reduction in our operations, the team is well prepared to make further changes to once again match the needs of the current market.

"Adjusting to a swift reduction in activity requires the organization to quickly, and cost efficiently, remove capacity from the market. The first stage of capacity reduction takes the form of de-crewing vessels and putting them into lay-up. This industry has a very high degree of operating leverage and eliminating operating costs on idle vessels is key to addressing the reduction in revenue. There are frictional costs to do this, including severance costs in certain geographies as well as the fuel to relocate the vessels to their lay-up location. And then there is the cost, albeit modest, of keeping the vessel in lay-up. In addition, the shore base operations in the markets in which we operate must be re-envisioned and matched to current market demand. The second stage of removing capacity from the market is for the least capable vessels in the idle fleet to be scrapped though the recycling of their steel in an environmentally responsible manner. We accelerated our capacity reduction process in the fourth quarter of last year and it has become even more relevant and urgent given the current situation.

"As we mentioned on the last earnings call, this industry needs to use the tools available to foster consolidation, whether virtual through the use of shipping pools, joint ship management, or through outright consolidation, to reduce fragmentation so that appropriate terms and pricing can be established. We mentioned on the previous earnings conference call that capital providers are holding up consolidation in their quest for par returns on investments made before 2014. It's even more evident now than it was three months ago that now is the time to act.

"We find ourselves again in a period of significant transition. We are dedicated to generating free cash flow and adjusting our business to align it with that key objective. Tidewater, due to its resilient and dedicated employees, is better positioned than any other offshore vessel company to lead this industry through another challenging period."

In addition to the number of outstanding shares, as of March 31, 2020, the company also has the following in the money warrants.

Common shares outstanding

 

 

40,259,917

 

 

New Creditor Warrants (strike price $0.001 per common share)

 

 

821,308

 

 

GulfMark Creditor Warrants (strike price $0.01 per common share)

 

 

952,154

 

 

Total

 

 

42,033,379

 

 

 

Tidewater will hold a conference call to discuss results for the three months ended March 31, 2020 on Tuesday, May 12, 2020 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 May 12, 2020 and will continue until 11:59 p.m. Central Time on June 12, 2020. 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 the largest fleet of Offshore Support Vessels in the industry, with over 60 years of experience supporting offshore energy exploration and production 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

(In thousands, except per share data)

 

 

Three Months

 

 

 

Three Months

 

 

 

Ended

 

 

 

Ended

 

 

 

March 31, 2020

 

 

 

March 31, 2019

 

Revenues:

 

 

 

 

 

 

 

 

 

Vessel revenues

 

$

111,974

 

 

 

$

119,662

 

Other operating revenues

 

 

4,394

 

 

 

 

2,487

 

Total revenues

 

 

116,368

 

 

 

 

122,149

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

Vessel operating costs

 

 

78,825

 

 

 

 

82,203

 

Costs of other operating revenue

 

 

2,673

 

 

 

 

764

 

General and administrative

 

 

21,420

 

 

 

 

27,140

 

Depreciation and amortization

 

 

27,107

 

 

 

 

22,932

 

Long-lived asset impairments

 

 

10,207

 

 

 

 

 

Gain on asset dispositions, net

 

 

(5,331

)

 

 

 

(1,270

)

 

 

 

134,901

 

 

 

 

131,769

 

Operating loss

 

 

(18,533

)

 

 

 

(9,620

)

Other income (expense):

 

 

 

 

 

 

 

 

 

Foreign exchange gain (loss)

 

 

864

 

 

 

 

(508

)

Equity in net losses of unconsolidated companies

 

 

 

 

 

 

(62

)

Interest income and other, net

 

 

116

 

 

 

 

2,470

 

Interest and other debt costs, net

 

 

(6,142

)

 

 

 

(7,736

)

 

 

 

(5,162

)

 

 

 

(5,836

)

Loss before income taxes

 

 

(23,695

)

 

 

 

(15,456

)

Income tax (benefit) expense

 

 

(5,171

)

 

 

 

5,830

 

Net loss

 

$

(18,524

)

 

 

$

(21,286

)

Net income (loss) attributable to noncontrolling interests

 

 

(79

)

 

 

 

445

 

Net loss attributable to Tidewater Inc.

 

$

(18,445

)

 

 

$

(21,731

)

Basic loss per common share

 

$

(0.46

)

 

 

$

(0.58

)

Diluted loss per common share

 

$

(0.46

)

 

 

$

(0.58

)

Weighted average common shares outstanding

 

 

40,101

 

 

 

 

37,179

 

Adjusted weighted average common shares

 

 

40,101

 

 

 

 

37,179

 

 
 
 
 

TIDEWATER INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and par value data)

 

 

March 31,

 

 

 

December 31,

 

ASSETS

 

2020

 

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

187,802

 

 

 

$

218,290

 

Restricted cash

 

 

12,461

 

 

 

 

5,755

 

Trade and other receivables, less allowance for credit losses of $579 as of March

31, 2020 and less allowance for doubtful accounts of $70 as of December 31,

2019.

 

 

119,455

 

 

 

 

110,180

 

Due from affiliate

 

 

128,204

 

 

 

 

125,972

 

Marine operating supplies

 

 

21,944

 

 

 

 

21,856

 

Assets held for sale

 

 

26,142

 

 

 

 

39,287

 

Prepaid expenses and other current assets

 

 

22,185

 

 

 

 

15,956

 

Total current assets

 

 

518,193

 

 

 

 

537,296

 

Net properties and equipment

 

 

922,979

 

 

 

 

938,961

 

Deferred drydocking and survey costs

 

 

81,981

 

 

 

 

66,936

 

Other assets

 

 

29,971

 

 

 

 

36,335

 

Total assets

 

$

1,553,124

 

 

 

$

1,579,528

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

30,711

 

 

 

$

27,501

 

Accrued costs and expenses

 

 

72,854

 

 

 

 

74,000

 

Due to affiliates

 

 

50,013

 

 

 

 

50,186

 

Current portion of long-term debt

 

 

9,104

 

 

 

 

9,890

 

Other current liabilities

 

 

26,953

 

 

 

 

24,100

 

Total current liabilities

 

 

189,635

 

 

 

 

185,677

 

Long-term debt

 

 

273,015

 

 

 

 

279,044

 

Other liabilities and deferred credits

 

 

91,578

 

 

 

 

98,397

 

 

 

 

 

 

 

 

 

 

 

Contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

 

Common stock

 

 

40

 

 

 

 

40

 

Additional paid-in-capital

 

 

1,368,325

 

 

 

 

1,367,521

 

Accumulated deficit

 

 

(371,134

)

 

 

 

(352,526

)

Accumulated other comprehensive income (loss)

 

 

133

 

 

 

 

(236

)

Total stockholder's equity

 

 

997,364

 

 

 

 

1,014,799

 

Noncontrolling interests

 

 

1,532

 

 

 

 

1,611

 

Total equity

 

 

998,896

 

 

 

 

1,016,410

 

Total liabilities and equity

 

$

1,553,124

 

 

 

$

1,579,528

 

 
 
 
 

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands)

 

 

 

Three Months

 

 

Three Months

 

 

 

Ended

 

 

Ended

 

 

 

March 31, 2020

 

 

March 31, 2019

 

Net loss

 

$

(18,524

)

 

$

(21,286

)

Other comprehensive income:

 

 

 

 

 

 

 

 

Change in pension plan and supplemental pension plan liability, net of tax of $0

and $0, respectively

 

 

369

 

 

 

 

Total comprehensive loss

 

$

(18,155

)

 

$

(21,286

)

 
 
 
 

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

 

 

 

Three Months

 

 

Three Months

 

 

 

Ended

 

 

Ended

 

 

 

March 31, 2020

 

 

March 31, 2019

 

Operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(18,524

)

 

$

(21,286

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

Depreciation

 

 

17,285

 

 

 

19,034

 

Amortization of deferred drydocking and survey costs

 

 

9,822

 

 

 

3,898

 

Amortization of debt premiums and discounts

 

 

675

 

 

 

(505

)

Provision (benefit) for deferred income taxes

 

 

 

 

 

169

 

Gain on asset dispositions, net

 

 

(5,331

)

 

 

(1,270

)

Long-lived asset impairments

 

 

10,207

 

 

 

 

Changes in investments in, at equity, and advances to unconsolidated

companies

 

 

 

 

 

265

 

Compensation expense - stock based

 

 

1,335

 

 

 

5,627

 

Changes in operating assets and liabilities, net:

 

 

 

 

 

 

 

 

Trade and other receivables

 

 

(9,438

)

 

 

(2,204

)

Changes in due to/from affiliate, net

 

 

(2,405

)

 

 

19,175

 

Accounts payable

 

 

3,210

 

 

 

(2,200

)

Accrued costs and expenses

 

 

(1,146

)

 

 

(5,626

)

Cash paid for deferred drydocking and survey costs

 

 

(24,867

)

 

 

(12,285

)

Other, net

 

 

(8,348

)

 

 

(5,949

)

Net cash used in operating activities

 

 

(27,525

)

 

 

(3,157

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Proceeds from sales of assets

 

 

9,452

 

 

 

9,651

 

Additions to property and equipment

 

 

(2,449

)

 

 

(3,116

)

Net cash provided by investing activities

 

 

7,003

 

 

 

6,535

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Principal payments on long-term debt

 

 

(2,600

)

 

 

(1,509

)

Taxes on share-based awards

 

 

(531

)

 

 

(1,578

)

Net cash used in financing activities

 

 

(3,131

)

 

 

(3,087

)

Net change in cash, cash equivalents and restricted cash

 

 

(23,653

)

 

 

291

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

227,608

 

 

 

397,744

 

Cash, cash equivalents and restricted cash at end of period (A)

 

$

203,955

 

 

$

398,035

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

 

 

 

Interest, net of amounts capitalized

 

$

5,442

 

 

$

8,319

 

Income taxes

 

$

2,550

 

 

$

4,415

 

(A) Cash, cash equivalents and restricted cash at March 31, 2020 includes $3.6 million in long-term restricted cash.

 
 
 
 

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(In thousands)

 

 

Common

stock

 

 

Additional

paid-in

capital

 

 

Accumulated deficit

 

 

Accumulated

other

comprehensive

income (loss)

 

 

Non

controlling

interest

 

 

Total

 

Balance at December 31, 2019

 

$

40

 

 

 

1,367,521

 

 

 

(352,526

)

 

 

(236

)

 

 

1,611

 

 

 

1,016,410

 

Total comprehensive loss

 

 

 

 

 

 

 

 

(18,445

)

 

 

369

 

 

 

(79

)

 

 

(18,155

)

Adoption of credit loss accounting standard

 

 

 

 

 

 

 

 

(163

)

 

 

 

 

 

 

 

 

(163

)

Amortization of restricted stock units

 

 

 

 

 

804

 

 

 

 

 

 

 

 

 

 

 

 

804

 

Balance at March 31, 2020

 

$

40

 

 

 

1,368,325

 

 

 

(371,134

)

 

 

133

 

 

 

1,532

 

 

 

998,896

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2018

 

$

37

 

 

 

1,352,388

 

 

 

(210,783

)

 

 

2,194

 

 

 

1,087

 

 

 

1,144,923

 

Total comprehensive loss

 

 

 

 

 

 

 

 

(21,731

)

 

 

 

 

 

445

 

 

 

(21,286

)

Issuance of common stock from exercise of

warrants

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Amortization/cancellation of restricted stock

units

 

 

 

 

 

4,047

 

 

 

 

 

 

 

 

 

 

 

 

4,047

 

Balance at March 31, 2019

 

$

37

 

 

 

1,356,436

 

 

 

(232,514

)

 

 

2,194

 

 

 

1,532

 

 

 

1,127,685

 

 
 
 

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

 

 

Quarter Ended

 

 

Quarter Ended

 

 

 

March 31, 2020

 

 

March 31, 2019

 

(In thousands)

 

 

 

 

 

%

 

 

 

 

 

 

%

 

Vessel revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

31,859

 

 

 

28

%

 

 

35,279

 

 

 

29

%

Middle East/Asia Pacific

 

 

24,828

 

 

 

22

%

 

 

20,456

 

 

 

17

%

Europe/Mediterranean

 

 

29,491

 

 

 

26

%

 

 

28,558

 

 

 

24

%

West Africa

 

 

25,796

 

 

 

23

%

 

 

35,369

 

 

 

30

%

Total vessel revenues

 

$

111,974

 

 

 

100

%

 

 

119,662

 

 

 

100

%

Vessel operating costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crew costs

 

$

44,487

 

 

 

40

%

 

 

48,145

 

 

 

40

%

Repair and maintenance

 

 

10,598

 

 

 

9

%

 

 

9,701

 

 

 

8

%

Insurance

 

 

1,785

 

 

 

2

%

 

 

2,178

 

 

 

2

%

Fuel, lube and supplies

 

 

9,752

 

 

 

9

%

 

 

9,345

 

 

 

8

%

Other

 

 

12,203

 

 

 

11

%

 

 

12,834

 

 

 

11

%

Total vessel operating costs

 

 

78,825

 

 

 

70

%

 

 

82,203

 

 

 

69

%

Vessel operating margin (A)

 

$

33,149

 

 

 

30

%

 

 

37,459

 

 

 

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:

 

 

Quarter Ended

 

 

Quarter Ended

 

 

 

March 31, 2020

 

 

March 31, 2019

 

(In thousands)

 

2020

 

 

%

 

 

2019

 

 

%

 

Vessel operating profit (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

(1,164

)

 

 

(2

%)

 

 

(1,030

)

 

 

(1

%)

Middle East/Asia Pacific

 

 

(856

)

 

 

(0

%)

 

 

(1,162

)

 

 

(1

%)

Europe/Mediterranean

 

 

1,547

 

 

 

1

%

 

 

(3,317

)

 

 

(3

%)

West Africa

 

 

(4,863

)

 

 

(4

%)

 

 

8,115

 

 

 

7

%

Other operating profit

 

 

1,721

 

 

 

1

%

 

 

1,704

 

 

 

1

%

 

 

 

(3,615

)

 

 

(3

%)

 

 

4,310

 

 

 

3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate expenses (A)

 

 

(10,042

)

 

 

(9

%)

 

 

(15,200

)

 

 

(12

%)

Gain (loss) on asset dispositions, net

 

 

5,331

 

 

 

5

%

 

 

1,270

 

 

 

1

%

Long-lived asset impairments

 

 

(10,207

)

 

 

(9

%)

 

 

 

 

 

 

Operating loss

 

$

(18,533

)

 

 

(16

%)

 

 

(9,620

)

 

 

(8

%)

Note (A):  General and administrative expenses for the three months ended March 31, 2020 includes stock-based compensation of $1.3 million.  General and administrative expenses for the three months ended March 31, 2019 includes stock-based compensation of $5.6 million. In addition, general and administrative costs for the three months ended March 31, 2020 and 2019  includes $0.1 million and $3.7 million, of severance and similar costs related to integrating Tidewater and GulfMark operations.

 
 
 
 

TIDEWATER INC.

CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) – QUARTERLY DATA

(Unaudited)

(In thousands, except per share data)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

 

2019

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vessel revenues

 

$

111,974

 

 

$

116,539

 

 

$

117,173

 

 

$

123,641

 

 

$

119,662

 

Other operating revenues

 

 

4,394

 

 

 

2,237

 

 

 

2,592

 

 

 

2,218

 

 

 

2,487

 

Total revenues

 

 

116,368

 

 

 

118,776

 

 

 

119,765

 

 

 

125,859

 

 

 

122,149

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vessel operating costs

 

 

78,825

 

 

 

85,935

 

 

 

80,619

 

 

 

80,439

 

 

 

82,203

 

Costs of other operating revenue

 

 

2,673

 

 

 

916

 

 

 

534

 

 

 

586

 

 

 

764

 

General and administrative (A)

 

 

21,420

 

 

 

22,406

 

 

 

30,474

 

 

 

23,696

 

 

 

27,140

 

Depreciation and amortization

 

 

27,107

 

 

 

28,226

 

 

 

25,735

 

 

 

25,038

 

 

 

22,932

 

(Gain) loss on asset dispositions, net

 

 

(5,331

)

 

 

(1,217

)

 

 

(270

)

 

 

494

 

 

 

(1,270

)

Asset impairments and other

 

 

10,207

 

 

 

32,549

 

 

 

5,224

 

 

 

 

 

 

 

Total operating costs and expenses

 

 

134,901

 

 

 

168,815

 

 

 

142,316

 

 

 

130,253

 

 

 

131,769

 

Operating loss

 

 

(18,533

)

 

 

(50,039

)

 

 

(22,551

)

 

 

(4,394

)

 

 

(9,620

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange gain (loss)

 

 

864

 

 

 

(945

)

 

 

173

 

 

 

11

 

 

 

(508

)

Equity in net (losses) earnings of

unconsolidated companies

 

 

 

 

 

 

(2,717

)

 

 

(468

)

 

 

95

 

 

 

(62

)

Interest income and other, net

 

 

116

 

 

 

690

 

 

 

1,579

 

 

 

1,859

 

 

 

2,470

 

Interest and other debt costs, net

 

 

(6,142

)

 

 

(6,282

)

 

 

(7,468

)

 

 

(7,582

)

 

 

(7,736

)

Total other expense

 

 

(5,162

)

 

 

(9,254

)

 

 

(6,184

)

 

 

(5,617

)

 

 

(5,836

)

Loss before income taxes

 

 

(23,695

)

 

 

(59,293

)

 

 

(28,735

)

 

 

(10,011

)

 

 

(15,456

)

Income tax (benefit) expense

 

 

(5,171

)

 

 

1,281

 

 

 

15,071

 

 

 

5,542

 

 

 

5,830

 

Net loss

 

$

(18,524

)

 

$

(60,574

)

 

$

(43,806

)

 

$

(15,553

)

 

$

(21,286

)

Net income (loss) attributable to

noncontrolling interests

 

 

(79

)

 

 

(721

)

 

 

394

 

 

 

406

 

 

 

445

 

Net loss attributable to Tidewater Inc.

 

$

(18,445

)

 

$

(59,853

)

 

$

(44,200

)

 

$

(15,959

)

 

$

(21,731

)

Basic loss per common share

 

$

(0.46

)

 

$

(1.52

)

 

$

(1.15

)

 

$

(0.42

)

 

$

(0.58

)

Diluted loss per common share

 

$

(0.46

)

 

$

(1.52

)

 

$

(1.15

)

 

$

(0.42

)

 

$

(0.58

)

Weighted average common shares

outstanding

 

 

40,100,744

 

 

 

39,504,154

 

 

 

38,537,165

 

 

 

37,570,629

 

 

 

37,178,580

 

Dilutive effect of stock options and restricted

stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted weighted average common shares

 

 

40,100,744

 

 

 

39,504,154

 

 

 

38,537,165

 

 

 

37,570,629

 

 

 

37,178,580

 

Vessel operating margin

 

$

33,149

 

 

 

30,604

 

 

 

36,554

 

 

 

43,202

 

 

 

37,459

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note (A): Restructuring and merger-related

items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Professional service costs included in general

and administrative expenses related to the

business combination with GulfMark

 

$

 

 

 

 

 

 

 

 

 

 

 

 

88

 

Integration related costs related to the

business combination with GulfMark

 

 

129

 

 

 

2,123

 

 

 

6,293

 

 

 

460

 

 

 

3,651

 

Total

 

$

129

 

 

 

2,123

 

 

 

6,293

 

 

 

460

 

 

 

3,739

 

 
 
 
 

TIDEWATER INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

ASSETS

 

2020

 

 

2019

 

 

2019

 

 

2019

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

187,802

 

 

 

218,290

 

 

 

359,332

 

 

 

369,549

 

 

 

391,060

 

Restricted cash

 

 

12,461

 

 

 

5,755

 

 

 

3,300

 

 

 

13,614

 

 

 

6,975

 

Trade and other receivables, net

 

 

119,455

 

 

 

110,180

 

 

 

123,133

 

 

 

121,155

 

 

 

112,853

 

Due from affiliate

 

 

128,204

 

 

 

125,972

 

 

 

124,757

 

 

 

121,959

 

 

 

119,049

 

Marine operating supplies

 

 

21,944

 

 

 

21,856

 

 

 

21,303

 

 

 

29,141

 

 

 

29,337

 

Assets held for sale

 

 

26,142

 

 

 

39,287

 

 

 

 

 

 

 

 

 

 

Prepaid expenses and other current assets

 

 

22,185

 

 

 

15,956

 

 

 

13,116

 

 

 

14,460

 

 

 

14,844

 

Total current assets

 

 

518,193

 

 

 

537,296

 

 

 

644,941

 

 

 

669,878

 

 

 

674,118

 

Investments in, at equity, and advances to

unconsolidated companies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

658

 

 

 

774

 

Net properties and equipment

 

 

922,979

 

 

 

938,961

 

 

 

1,022,786

 

 

 

1,041,054

 

 

 

1,065,297

 

Deferred drydocking and survey costs

 

 

81,981

 

 

 

66,936

 

 

 

49,025

 

 

 

41,029

 

 

 

30,602

 

Other assets

 

 

29,971

 

 

 

36,335

 

 

 

37,269

 

 

 

39,651

 

 

 

38,507

 

Total assets

 

$

1,553,124

 

 

 

1,579,528

 

 

 

1,754,021

 

 

 

1,792,270

 

 

 

1,809,298

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

30,711

 

 

 

27,501

 

 

 

23,672

 

 

 

24,170

 

 

 

29,739

 

Accrued costs and expenses

 

 

72,854

 

 

 

74,000

 

 

 

54,792

 

 

 

56,675

 

 

 

56,025

 

Due to affiliates

 

 

50,013

 

 

 

50,186

 

 

 

41,676

 

 

 

39,060

 

 

 

40,245

 

Current portion of long-term debt

 

 

9,104

 

 

 

9,890

 

 

 

9,689

 

 

 

10,002

 

 

 

9,957

 

Other current liabilities

 

 

26,953

 

 

 

24,100

 

 

 

30,024

 

 

 

24,442

 

 

 

20,115

 

Total current liabilities

 

 

189,635

 

 

 

185,677

 

 

 

159,853

 

 

 

154,349

 

 

 

156,081

 

Long-term debt

 

 

273,015

 

 

 

279,044

 

 

 

419,905

 

 

 

424,911

 

 

 

427,436

 

Other liabilities and deferred credits

 

 

91,578

 

 

 

98,397

 

 

 

96,499

 

 

 

97,471

 

 

 

98,096

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

40

 

 

 

40

 

 

 

39

 

 

 

38

 

 

 

37

 

Additional paid-in-capital

 

 

1,368,325

 

 

 

1,367,521

 

 

 

1,365,872

 

 

 

1,359,842

 

 

 

1,356,436

 

Accumulated deficit

 

 

(371,134

)

 

 

(352,526

)

 

 

(292,673

)

 

 

(248,473

)

 

 

(232,514

)

Accumulated other comprehensive income

(loss)

 

 

133

 

 

 

(236

)

 

 

2,194

 

 

 

2,194

 

 

 

2,194

 

Total stockholder's equity

 

 

997,364

 

 

 

1,014,799

 

 

 

1,075,432

 

 

 

1,113,601

 

 

 

1,126,153

 

Noncontrolling interests

 

 

1,532

 

 

 

1,611

 

 

 

2,332

 

 

 

1,938

 

 

 

1,532

 

Total equity

 

 

998,896

 

 

 

1,016,410

 

 

 

1,077,764

 

 

 

1,115,539

 

 

 

1,127,685

 

Total liabilities and equity

 

$

1,553,124

 

 

 

1,579,528

 

 

 

1,754,021

 

 

 

1,792,270

 

 

 

1,809,298

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Due from related parties, net of due to related

parties:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sonatide (Angola)

 

$

64,184

 

 

 

57,771

 

 

 

64,660

 

 

 

66,690

 

 

 

62,591

 

DTDW (Nigeria)

 

 

14,007

 

 

 

18,015

 

 

 

18,421

 

 

 

16,209

 

 

 

16,213

 

Total

 

 

78,191

 

 

 

75,786

 

 

 

83,081

 

 

 

82,899

 

 

 

78,804

 

 

 
 
 
 

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

(In thousands)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

 

2019

 

VESSEL REVENUE BY VESSEL CLASS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas fleet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deepwater

 

$

22,882

 

 

 

22,883

 

 

 

24,575

 

 

 

26,991

 

 

 

25,214

 

Towing-supply

 

 

7,243

 

 

 

8,639

 

 

 

7,831

 

 

 

7,448

 

 

 

8,576

 

Other

 

 

1,734

 

 

 

1,811

 

 

 

741

 

 

 

760

 

 

 

1,489

 

Total

 

$

31,859

 

 

 

33,333

 

 

 

33,147

 

 

 

35,199

 

 

 

35,279

 

Middle East/Asia Pacific fleet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deepwater

 

$

14,326

 

 

 

16,015

 

 

 

14,960

 

 

 

12,130

 

 

 

10,502

 

Towing-supply

 

 

10,502

 

 

 

10,636

 

 

 

7,805

 

 

 

8,319

 

 

 

9,954

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

24,828

 

 

 

26,651

 

 

 

22,765

 

 

 

20,449

 

 

 

20,456

 

Europe/Mediterranean fleet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deepwater

 

$

29,163

 

 

 

28,652

 

 

 

30,608

 

 

 

34,104

 

 

 

27,577

 

Towing-supply

 

 

179

 

 

 

528

 

 

 

338

 

 

 

923

 

 

 

981

 

Other

 

 

149

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

29,491

 

 

 

29,180

 

 

 

30,946

 

 

 

35,027

 

 

 

28,558

 

West Africa fleet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deepwater

 

$

12,102

 

 

 

14,066

 

 

 

14,923

 

 

 

14,977

 

 

 

15,949

 

Towing-supply

 

 

10,521

 

 

 

9,981

 

 

 

11,598

 

 

 

14,015

 

 

 

15,184

 

Other

 

 

3,173

 

 

 

3,328

 

 

 

3,794

 

 

 

3,974

 

 

 

4,236

 

Total

 

$

25,796

 

 

 

27,375

 

 

 

30,315

 

 

 

32,966

 

 

 

35,369

 

Worldwide fleet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deepwater

 

$

78,473

 

 

 

81,616

 

 

 

85,066

 

 

 

88,202

 

 

 

79,242

 

Towing-supply

 

 

28,445

 

 

 

29,784

 

 

 

27,572

 

 

 

30,705

 

 

 

34,695

 

Other

 

 

5,056

 

 

 

5,139

 

 

 

4,535

 

 

 

4,734

 

 

 

5,725

 

Total

 

$

111,974

 

 

 

116,539

 

 

 

117,173

 

 

 

123,641

 

 

 

119,662

 

 
 
 
 

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

 

 

Three Months Ended

 

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

 

2019

 

AVERAGE NUMBER OF VESSELS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas fleet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deepwater

 

 

32

 

 

 

31

 

 

 

32

 

 

 

34

 

 

 

37

 

Towing-supply

 

 

17

 

 

 

17

 

 

 

17

 

 

 

18

 

 

 

27

 

Other

 

 

3

 

 

 

4

 

 

 

5

 

 

 

6

 

 

 

7

 

Total

 

 

52

 

 

 

52

 

 

 

54

 

 

 

58

 

 

 

71

 

Stacked vessels

 

 

(17

)

 

 

(15

)

 

 

(17

)

 

 

(20

)

 

 

(32

)

Active vessels

 

 

35

 

 

 

37

 

 

 

37

 

 

 

38

 

 

 

39

 

Middle East/Asia Pacific fleet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deepwater

 

 

27

 

 

 

27

 

 

 

26

 

 

 

24

 

 

 

24

 

Towing-supply

 

 

28

 

 

 

28

 

 

 

26

 

 

 

26

 

 

 

27

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

55

 

 

 

55

 

 

 

52

 

 

 

50

 

 

 

51

 

Stacked vessels

 

 

(10

)

 

 

(10

)

 

 

(11

)

 

 

(9

)

 

 

(10

)

Active vessels

 

 

45

 

 

 

44

 

 

 

41

 

 

 

41

 

 

 

41

 

Europe/Mediterranean fleet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deepwater

 

 

39

 

 

 

42

 

 

 

42

 

 

 

44

 

 

 

45

 

Towing-supply

 

 

2

 

 

 

3

 

 

 

3

 

 

 

3

 

 

 

3

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

41

 

 

 

45

 

 

 

45

 

 

 

47

 

 

 

48

 

Stacked vessels

 

 

(11

)

 

 

(15

)

 

 

(13

)

 

 

(13

)

 

 

(14

)

Active vessels

 

 

30

 

 

 

30

 

 

 

32

 

 

 

34

 

 

 

34

 

West Africa fleet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deepwater

 

 

26

 

 

 

27

 

 

 

29