HOUSTON, May 4 /PRNewswire-FirstCall/ -- Cal Dive International, Inc.
(Nasdaq: CDIS) reported first quarter net income of $25.4 million or $0.64 per
diluted share. Included in the earnings was a pre-tax $4.5 million, or
$.06 per diluted share, for the write off of seismic costs acquired as part of
the Company's recently announced oil and gas production acquisitions. Net
income before the charge doubled the level achieved during last year's first
quarter.
Summary of Results
(in thousands, except per share amounts and percentages)
First Quarter Fourth Quarter
2005 2004 2004
Revenues $159,575 $120,714 $162,990
Gross Profit 51,873 31,741 53,030
33% 26% 33%
Net Income 25,411 13,645 25,269
16% 11% 16%
Diluted Earnings Per Share 0.64 0.36 0.65
Owen Kratz, Chairman and Chief Executive Officer of Cal Dive, stated,
"Absent the unusual charge, this was our fourth consecutive quarter of record
earnings, driven by excellent offshore performance and gradually improving
market conditions for Marine Contracting together with continued strong
performance by the oil and gas production division (ERT). Following this
strong start to the year, we now anticipate 2005 earnings to be in the
increased range of $2.30 - $2.90 per share.
"We have also been particularly busy setting the groundwork for further
growth of Cal Dive in 2006 and beyond. We started by placing a long term debt
facility and then announced strategic acquisitions in the Shelf sector of the
Marine Contracting market. Finally, we closed several very exciting
production contracting deals, which involved both significant reserve
additions for ERT and good opportunities for deepwater Marine Contracting
work."
Financial Highlights
* Revenues: The $38.9 million increase in year-over-year first quarter
revenues reflects not only increases in commodity prices, but also a
significant improvement in Marine Contracting revenues driven
primarily by improved market conditions.
* Margins: 33% was seven points better than the year-ago quarter due to
improved utilization and rates across virtually all business groups
within Marine Contracting and the increase in commodity prices.
* SG&A: $12.8 million increased $1.7 million from the same period a
year ago due primarily to improved financial results and the related
increase from our incentive compensation programs. With this
increase, SG&A was 8% of first quarter revenues, compared to 9% a year
ago.
* Equity in Earnings: $1.7 million reflects our share of Deepwater
Gateway, L.L.C.'s earnings for the quarter. This reflects a 51%
decrease from the fourth quarter due to the expected fall-off in
production from the Marco Polo reservoir and to the early retirement
of Deepwater Gateway's term loan, which resulted in a $1.2 million
charge for the write-off of deferred financing charges.
* Debt: On March 30, 2005, Cal Dive issued $300 million of Convertible
Senior Notes. We utilized $72 million of the proceeds to fund Cal
Dive's portion of the early retirement of Deepwater Gateway's term
loan. Total debt to book capitalization was 44% at March 31, 2005,
offset by $362 million of unrestricted cash. Subsequent to March 31,
2005, the Company announced acquisitions of certain assets of Stolt
Offshore, subject to regulatory approval, and Torch Offshore, subject
to bankruptcy court approvals, for approximately $205 million
combined, if completed. In addition, the Company announced three
production contracting transactions.
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 Daylight Time on Thursday, May 5,
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;
complexities of global political and economic developments, and other risks
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, 2004. 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 Mar. 31,
(000's omitted, except per share data) 2005 2004
(unaudited)
Net Revenues $159,575 $120,714
Cost of Sales 107,702 88,973
Gross Profit 51,873 31,741
Selling and Administrative 12,837 11,158
Income from Operations 39,036 20,583
Equity in Earnings of Production
Facilities Investments 1,729 ---
Interest Expense, net & Other 264 1,555
Income Before Income Taxes 40,501 19,028
Income Tax Provision 14,540 5,019
Net Income 25,961 14,009
Preferred Stock Dividends and
Accretion 550 364
Net Income Applicable to Common
Shareholders $25,411 $13,645
Other Financial Data:
Income from Operations $39,036 $20,583
Equity in Earnings of Production
Facilities Investments 1,729 ---
Share of Production Facilities
Investments:
Depreciation 1,010 ---
Interest Expense, net 1,383 ---
Depreciation and Amortization:
Marine Contracting 9,094 8,900
Oil and Gas Production 17,629 17,500
EBITDA (A) $69,881 $46,983
Weighted Avg. Shares Outstanding:
Basic 38,571 37,946
Diluted 40,869 39,150
Earnings Per Share:
Basic $0.66 $0.36
Diluted $0.64 $0.36
(A) The Company calculates EBITDA as earnings before net interest
expense, taxes, depreciation and amortization (which includes non-
cash asset impairments) and the Company's share of depreciation and
net interest expense from its Production Facilities Investments.
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) Mar. 31, 2005 Dec. 31, 2004
(unaudited)
Current Assets:
Cash and equivalents $362,267 $91,142
Accounts receivable 110,261 114,709
Other current assets 37,202 48,110
Total Current Assets 509,730 253,961
Net Property & Equipment:
Marine Contracting 408,702 411,596
Oil and Gas Production 169,986 172,821
Equity Investments in Production Facilities 135,656 67,192
Goodwill 84,073 84,193
Other assets, net 60,022 48,995
Total Assets $1,368,169 $1,038,758
LIABILITIES & SHAREHOLDERS' EQUITY
Mar. 31, 2005 Dec. 31, 2004
(unaudited)
Current Liabilities:
Accounts payable $57,094 $56,047
Accrued liabilities 74,191 75,502
Current mat of L-T debt 7,240 9,613
Total Current Liabilities 138,525 141,162
Long-term debt 436,036 138,947
Deferred income taxes 135,999 133,777
Decommissioning liabilities 83,544 79,490
Other long term liabilities 4,345 5,090
Convertible preferred stock 55,000 55,000
Shareholders' equity 514,720 485,292
Total Liabilities & Equity $1,368,169 $1,038,758
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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