HOUSTON, March 1 /PRNewswire-FirstCall/ -- Cal Dive International, Inc.
(Nasdaq: CDIS) reported fourth quarter net income of $25.3 million or
$0.65 per diluted share, after pre-tax charges of $3.9 million, or $0.06 per
diluted share, associated with marine asset value impairments. Net income,
before charges, increased by 22% sequentially and by 213% compared with the
prior year quarter.
Summary of Results
(in thousands, except per share amounts and percentages)
Fourth Quarter Third Quarter Year Ending
2004 2003 2004 2004 2003
Revenues $162,990 $101,675 $131,987 $543,392 $396,269
Gross Profit 53,030 24,685 45,726 171,912 92,083
33% 24% 35% 32% 23%
Net Income 25,269 8,884 22,794 79,916 32,771
16% 9% 17% 15% 8%
Diluted Earnings
Per Share 0.65 0.23 0.59 2.06 0.87
Owen Kratz, Chairman and Chief Executive Officer of Cal Dive, stated,
"This was our third consecutive quarter of record earnings, which capped a
memorable year of performance and profitability. Our people worked tirelessly
and diligently to achieve optimum results. Return on capital (tax effected
earnings before net interest expense divided by average debt and equity) of
14% and EBITDA margins of 44% are just two measures of our success throughout
the year.
"At the start of 2005 we are witnessing clearly improving market
conditions for our Marine Contracting services and strong contribution from
our Oil and Gas Production division. Additionally, we expect a ramp up in
contribution from our Production Facilities business in the second half of
2005."
Financial Highlights
* Revenues: The $61.3 million increase in year-over-year fourth quarter
revenues reflects not only higher oil and gas production and increases
in commodity prices but also a significant improvement in Marine
Contracting revenues driven by Hurricane Ivan work and improved market
conditions.
* Margins: 33% was nine points better than the year-ago quarter due
primarily to the increased commodity prices. Marine Contracting
margins were higher as a result of improved utilization and rates, but
were offset by marine asset value impairment charges. During Q4, we
decided to sell the Merlin and accordingly wrote down her book value
to expected sales price. In addition, book values for two shelf
assets were deemed impaired and written down to realizable value.
Total pre-tax charges were $3.9 million.
* SG&A: $14.1 million increased $4.4 million from the same period a
year ago due primarily to our incentive compensation programs and
related improved financial results. With this increase, SG&A was 9%
of fourth quarter revenues, compared to 10% a year ago.
* Equity in Earnings: $3.6 million reflects our share of Deepwater
Gateway, L.L.C.'s earnings for the quarter. This reflects a 16%
increase over the third quarter as production at the Marco Polo
facility began to ramp up.
* Debt: EBITDA of $71.8 million for the quarter enabled us to reduce
total debt to $149 million and increase unrestricted cash to
$91 million as of year-end. This represents a debt to book
capitalization ratio of 22% and a net debt (total debt less
unrestricted cash) to book capitalization ratio of 10%.
Further details are provided in the presentation for Cal Dive's quarterly
conference call (see the Investor Relations page of http://www.caldive.com ).
The call, scheduled for 9:00 a.m. Central Standard Time on Wednesday, March 2,
2005, will be webcast live. A replay will be available from the Audio
Archives page.
Cal Dive International, Inc., headquartered in Houston, Texas, is an
energy service company which provides alternate solutions to the oil and gas
industry worldwide for marginal field development, alternative development
plans, field life extension and abandonment, with service lines including
marine diving services, robotics, well operations, facilities ownership and
oil and gas production.
This press release and attached presentation contain forward-looking
statements that involve risks, uncertainties and assumptions that could cause
our results to differ materially from those expressed or implied by such
forward-looking statements. All statements, other than statements of
historical fact, are statements that could be deemed "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995, including, without limitation, any projections of revenue, gross
margin, expenses, earnings or losses from operations, or other financial
items; any statements of the plans, strategies and objectives of management
for future operations; any statement concerning developments, performance or
industry rankings relating to services; any statements regarding future
economic conditions or performance; any statements of expectation or belief;
and any statements of assumptions underlying any of the foregoing. The risks,
uncertainties and assumptions referred to above include the performance of
contracts by suppliers, customers and partners; employee management issues; as
described from time to time in our reports filed with the Securities and
Exchange Commission, including the Company's Annual Report on Form 10-K for
the year ending December 31, 2003. We assume no obligation and do not intend
to update these forward-looking statements.
CAL DIVE INTERNATIONAL, INC.
Comparative Condensed Consolidated Statements of Operations
Three Months Ended Twelve Months Ended
(000's omitted, except Dec. 31, Dec. 31,
per share data) 2004 2003 2004 2003
(unaudited)
Net Revenues $162,990 $101,675 $543,392 $396,269
Cost of Sales 109,960 76,990 371,480 304,186
Gross Profit 53,030 24,685 171,912 92,083
Selling and Administrative 14,135 9,721 48,881 35,922
Income from Operations 38,895 14,964 123,031 56,161
Equity in Earnings (Losses) of
Deepwater Gateway, L.L.C. 3,555 20 7,927 (87)
Interest Expense, net & Other 1,631 477 5,265 3,403
Income Before Income Taxes 40,819 14,507 125,693 52,671
Income Tax Provision 14,548 5,254 43,034 18,993
Income Before Change in Accounting
Principle 26,271 9,253 82,659 33,678
Cumulative Effect of Change in
Accounting Principle, net --- --- --- 530
Net Income 26,271 9,253 82,659 34,208
Preferred Stock Dividends and
Accretion 1,002 369 2,743 1,437
Net Income Applicable to Common
Shareholders $25,269 $8,884 $79,916 $32,771
Other Financial Data:
Income from Operations $38,895 $14,964 $123,031 $56,161
Equity in Earnings (Losses) of
Deepwater Gateway, L.L.C. 3,555 20 7,927 (87)
Depreciation and Amortization:
Marine Contracting 12,397 8,531 39,259 32,902
Oil and Gas Production 16,963 12,441 69,046 37,891
EBITDA (A) $71,810 $35,956 $239,263 $126,867
Weighted Avg. Shares Outstanding:
Basic 38,395 37,836 38,204 37,740
Diluted 39,615 37,933 39,531 37,844
Earnings Per Share:
Basic $0.66 $0.23 $2.09 $0.87
Diluted $0.65 $0.23 $2.06 $0.87
(A) The Company calculates EBITDA as earnings before net interest
expense, taxes, depreciation and amortization (which includes non-
cash asset impairments). EBITDA and EBITDA margin (defined as
EBITDA divided by net revenue) are supplemental non-GAAP financial
measurements used by CDI and investors in the marine construction
industry in the evaluation of its business due to the measurements
being similar to income from operations.
Comparative Condensed Consolidated Balance Sheets
ASSETS
(000's omitted) Dec. 31, Dec. 31,
2004 2003
(unaudited)
Current Assets:
Cash and equivalents $91,142 $8,811
Accounts receivable 114,709 96,607
Other current assets 48,110 25,232
Total Current Assets 253,961 130,650
Net Property & Equipment:
Marine Contracting 411,596 420,834
Oil and Gas Production 172,821 197,969
Investments in Production Facilities 67,192 34,517
Goodwill 84,193 81,877
Other assets, net 48,995 16,995
Total Assets $1,038,758 $882,842
LIABILITIES & SHAREHOLDERS' EQUITY
Dec. 31, Dec. 31,
2004 2003
(unaudited)
Current Liabilities:
Accounts payable $56,047 $50,897
Accrued liabilities 75,502 36,850
Current mat of L-T debt 9,613 16,199
Total Current Liabilities 141,162 103,946
Long-term debt 138,947 206,632
Deferred income taxes 133,777 89,274
Decommissioning liabilities 79,490 75,269
Other long term liabilities 5,090 2,042
Convertible preferred stock 55,000 24,538
Shareholders' equity 485,292 381,141
Total Liabilities & Equity $1,038,758 $882,842
SOURCE Cal Dive International, Inc.
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Related links:
http://www.caldive.com
CONTACT:
Wade Pursell, Chief Financial Officer of Cal
Dive International, Inc., +1-281-618-0400, or fax,
+1-281-618-0505
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