HOUSTON, Aug. 2 /PRNewswire-FirstCall/ -- Cal Dive International, Inc.
(Nasdaq: CDIS) reported second quarter net income of $26.0 million, or $0.65
per diluted share. Included in the earnings was a pre-tax $0.8 million charge
for an impairment relating to the sale of one of the Company's Marine
Contracting vessels in July. Also included in the earnings was a pre-tax
$2.8 million impairment charge for the write-off of the remaining basis in an
oil and gas property that ceased production in the second quarter. Earnings
before these charges was $0.71 per share.
Summary of Results
(in thousands, except per share amounts and percentages)
Second Quarter First Quarter Six Months
2005 2004 2005 2005 2004
Revenues $166,531 $127,701 $159,575 $326,106 $248,416
Gross Profit 52,419 41,415 51,873 104,292 73,157
32% 32% 33% 32% 29%
Net Income 26,027 18,208 25,411 51,437 31,854
16% 14% 16% 16% 13%
Diluted
Earnings
Per Share 0.65 0.47 0.64 1.28 0.83
Owen Kratz, Chairman and Chief Executive Officer of Cal Dive, stated, "It
is very satisfying and encouraging to report such strong financial results in
a quarter which saw the regulatory drydockings of the Q4000, Seawell and three
other vessels. This maintenance activity is now largely behind us for the
year and we have good backlogs for most of our fleet in steadily improving
market conditions.
"We also completed a significant mature production property transaction
during the quarter that should help us meet our production target range for
the year.
"Following our better than budgeted start to 2005, we now expect earnings
for the year to be in the increased range of $2.80 - $3.20 / share."
Financial Highlights
* Revenues: The $38.8 million increase in year-over-year second quarter
revenues was driven primarily by significant improvements in Marine
Contracting revenues due to improved market conditions, particularly
in both deepwater and shelf subsea construction.
* Margins: 32% (34% before impairment charges) matched the margin of
the year-ago quarter as a significant improvement in subsea
construction margins (improved market conditions) more than offset the
decline in well operations margins (both vessels in regulatory drydock
in 2Q 2005). Oil & gas production margins were down slightly due to
the aforementioned impairment charge.
* SG&A: $12.9 million increased slightly ($200,000) from the same
period a year ago. This level of SG&A was 8% of second quarter
revenues, compared to 10% a year ago.
* Equity in Earnings: $2.7 million reflects our share of Deepwater
Gateway, L.L.C.'s earnings for the quarter. This reflects a 57%
increase from the first quarter due primarily to the early retirement
of debt in the first quarter which resulted in a $600,000 charge, net
to Cal Dive for the write-off of deferred financing costs in the first
quarter and no interest expense beginning in the second quarter.
* Balance Sheet: During the second quarter, the Company acquired for
$196 million ($163 million cash), a package of mature oil and gas
producing properties from Murphy Exploration. Total debt as of
June 30, 2005 was $443 million. This represents 43% debt to book
capitalization and with $279 million of EBITDA for the twelve months
ended June 30, 2005, this represents 1.6 times trailing twelve month
EBITDA. In addition, the Company had $200 million of unrestricted
cash as of June 30, 2005. Subject to regulatory approval, these funds
will be utilized for the previously announced acquisitions of certain
assets of Stolt Offshore and Torch Offshore.
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 Wednesday,
August 3, 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 Six Months Ended
(000's omitted, except per share June 30, June 30,
data) 2005 2004 2005 2004
(unaudited)
Net Revenues $166,531 $127,701 $326,106 $248,416
Cost of Sales 114,112 86,286 221,814 175,259
Gross Profit 52,419 41,415 104,292 73,157
Gain on Sale of Assets, net --- --- 925 ---
Selling and Administrative 12,858 12,663 25,696 23,821
Income from Operations 39,561 28,752 79,521 49,336
Equity in Earnings of
Production Facilities
Investments 2,708 1,310 4,437 1,310
Interest Expense, net & Other 913 1,242 2,102 2,796
Income Before Income Taxes 41,356 28,820 81,856 47,850
Income Tax Provision 14,779 10,228 29,319 15,248
Net Income 26,577 18,592 52,537 32,602
Preferred Stock Dividends and
Accretion 550 384 1,100 748
Net Income Applicable to Common
Shareholders $26,027 $18,208 $51,437 $31,854
Other Financial Data:
Income from Operations $39,561 $28,752 $79,521 $49,336
Equity in Earnings of
Production Facilities
Investments 2,708 1,310 4,437 1,310
Share of Production Facilities
Investments:
Depreciation 997 981 2,007 981
Interest Expense, net --- 633 1,419 1,267
Depreciation and Amortization:
Marine Contracting 10,510 8,913 19,604 17,813
Oil and Gas Production 18,737 17,268 36,365 34,768
EBITDA (A) $72,513 $57,857 $143,353 $105,475
Weighted Avg. Shares Outstanding:
Basic 38,722 38,180 38,647 38,063
Diluted 40,981 39,452 40,925 39,357
Earnings Per Share:
Basic $0.67 $0.48 $1.33 $0.84
Diluted $0.65 $0.47 $1.28 $0.83
(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) June 30, 2005 Dec. 31, 2004
(unaudited)
Current Assets:
Cash and equivalents $199,689 $91,142
Accounts receivable 124,885 114,709
Other current assets 40,776 48,110
Total Current Assets 365,350 253,961
Net Property & Equipment:
Marine Contracting 408,030 411,596
Oil and Gas Production 374,470 172,821
Equity Investments in Production
Facilities 153,779 67,192
Goodwill 82,811 84,193
Other assets, net 74,146 48,995
Total Assets $1,458,586 $1,038,758
LIABILITIES & SHAREHOLDERS' EQUITY
June 30, 2005 Dec. 31, 2004
(unaudited)
Current Liabilities:
Accounts payable $60,050 $56,047
Accrued liabilities 89,694 75,502
Current mat of L-T debt (B) 7,332 9,613
Total Current Liabilities 157,076 141,162
Long-term debt (B) 435,252 138,947
Deferred income taxes 151,441 133,777
Decommissioning liabilities 117,089 79,490
Other long term liabilities 9,757 5,090
Convertible preferred stock (B) 55,000 55,000
Shareholders' equity (B) 532,971 485,292
Total Liabilities & Equity $1,458,586 $1,038,758
(B) Debt to book capitalization - 43%. Calculated as total debt
($442,584) divided by sum of total debt, convertible preferred stock
and shareholders' equity ($1,030,555).
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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