HOUSTON, Nov. 1 /PRNewswire-FirstCall/ -- Cal Dive International, Inc.
(Nasdaq: CDIS) reported third quarter net income of $42.7 million, or $1.05
per diluted share. This represents a 78% improvement over last year's third
quarter results.
The Company sustained damage to certain of its oil and gas production
facilities in Hurricanes Katrina and Rita. The Company estimates total repair
and inspection costs resulting from the hurricanes will range from $5 million
to $8 million, net of insurance reimbursement. These costs, and any related
insurance reimbursements, will be recorded as incurred over the next year.
Summary of Results
(in thousands, except per share amounts and percentages)
Third Qtr Second Qtr Nine Months
2005 2004 2005 2005 2004
Revenues $209,338 $131,987 $166,531 $535,444 $380,403
Gross Profit 82,928 45,726 52,419 187,220 118,883
40% 35% 32% 35% 31%
Net Income 42,671 22,794 26,027 94,108 54,647
20% 17% 16% 18% 14%
Diluted Earnings
Per Share 1.05 0.59 0.65 2.34 1.41
Owen Kratz, Chairman and Chief Executive Officer of Cal Dive, stated, "The
two hurricanes that occurred during the quarter severely tested the resilience
of our people and I am very pleased to report that they passed with flying
colors.
"Due to the strength of our business model, we produced another record
quarter for both earnings and cash flow despite deferring around 12 cents per
share of income related to delayed production revenues. It was particularly
satisfying to see the Marine Contracting division have such a strong quarter
even though the incremental benefit from hurricane related work did not start
until late in the period.
"The outlook for Q4 is for the Marine Contracting division to perform well
again, especially with the introduction of several of the recently acquired
assets, offsetting income deferrals resulting from hurricane related shut-ins
for both the Oil and Gas division and the Production Facilities division.
Based on this outlook we expect 2005 earnings to fall in the range of $3.15 -
$3.35 per share."
Financial Highlights
* Revenues: The $77.4 million increase in year-over-year third quarter
revenues was driven primarily by significant improvements in Marine
Contracting revenues due to much better market conditions,
particularly in both deepwater and shelf subsea construction.
* Margins: 40% was five points better than the year-ago quarter due to
a significant increase in Marine Contracting margins driven by
improved market conditions.
* SG&A: $15.9 million increased $5.0 million from the same period a
year ago due primarily to additional incentive compensation accruals
as a result of improved profitability. This level of SG&A was 8% of
third quarter revenues, consistent with the year ago level.
* Equity in Earnings: $3.7 million reflects primarily our share of
Deepwater Gateway, L.L.C.'s earnings for the quarter. This reflects
only a $600,000 increase from the second quarter as the anticipated
ramp up with K2 coming online at the Marco Polo facility was offset by
downtime caused by the hurricanes.
* Balance Sheet: During the third quarter, the Company acquired seven
vessels from Torch Offshore, including the Midnight Express for
$85.4 million. Total debt as of September 30, 2005 was $443 million.
This represents 42% debt to book capitalization and with $316 million
of EBITDA for the twelve months ended September 30, 2005, this
represents 1.4 times trailing twelve month EBITDA. In addition, the
Company had $150 million of unrestricted cash as of
September 30, 2005. Most of these funds will be utilized for the
previously announced acquisition of certain assets of Stolt Offshore,
which the DOJ cleared last month.
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,
November 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;
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 Nine Months Ended
Sept. 30, Sept. 30,
(000's omitted,
except per share data) 2005 2004 2005 2004
(unaudited)
Net Revenues $209,338 $131,987 $535,444 $380,403
Cost of Sales 126,410 86,261 348,224 261,520
Gross Profit 82,928 45,726 187,220 118,883
Gain on Sale of Assets, net 329 --- 1,254 ---
Selling and Administrative 15,892 10,926 41,588 34,746
Income from Operations 67,365 34,800 146,886 84,137
Equity in Earnings of
Investments 3,721 3,062 8,158 4,372
Interest Expense, net & Other 2,766 838 4,868 3,635
Income Before Income Taxes 68,320 37,024 150,176 84,874
Income Tax Provision 25,099 13,237 54,418 28,486
Net Income 43,221 23,787 95,758 56,388
Preferred Stock Dividends and
Accretion 550 993 1,650 1,741
Net Income Applicable to Common
Shareholders $42,671 $22,794 $94,108 $54,647
Other Financial Data:
Income from Operations $67,365 $34,800 $146,886 $84,137
Equity in Earnings of
Investments 3,721 3,062 8,158 4,372
Share of Equity Investments:
Depreciation 1,200 1,004 3,207 1,985
Interest Expense, net 143 707 1,562 1,974
Depreciation and Amortization:
Marine Contracting 10,033 9,049 29,637 26,862
Oil and Gas Production 18,713 17,316 55,078 52,083
EBITDA (A) $101,175 $65,938 $244,528 $171,413
Weighted Avg. Shares Outstanding:
Basic 38,763 38,294 38,686 38,141
Diluted 41,080 39,418 40,981 39,413
Earnings Per Share:
Basic $1.10 $0.60 $2.43 $1.43
Diluted $1.05 $0.59 $2.34 $1.41
(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 Equity 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) Sept. 30, 2005 Dec. 31, 2004
(unaudited)
Current Assets:
Cash and equivalents $150,497 $91,142
Accounts receivable 148,961 114,709
Other current assets 69,232 48,110
Total Current Assets 368,690 253,961
Net Property & Equipment:
Marine Contracting 490,082 411,596
Oil and Gas Production 378,124 172,821
Equity Investments 168,198 67,192
Goodwill 82,476 84,193
Other assets, net 72,329 48,995
Total Assets $1,559,899 $1,038,758
LIABILITIES & SHAREHOLDERS' EQUITY
Sept. 30, 2005 Dec. 31, 2004
(unaudited)
Current Liabilities:
Accounts payable $81,612 $56,047
Accrued liabilities 109,818 75,502
Current mat of L-T debt (B) 6,566 9,613
Total Current Liabilities 197,996 141,162
Long-term debt (B) 435,949 138,947
Deferred income taxes 177,453 133,777
Decommissioning liabilities 118,344 79,490
Other long term liabilities 11,623 5,090
Convertible preferred stock (B) 55,000 55,000
Shareholders' equity (B) 563,534 485,292
Total Liabilities & Equity $1,559,899 $1,038,758
(B) Debt to book capitalization - 42%. Calculated as total debt
($442,515) divided by sum of total debt, convertible preferred stock
and shareholders' equity ($1,061,049).
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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