HOUSTON, May 4 /PRNewswire/ -- Cal Dive International, Inc. (Nasdaq: CDIS - news) today announced first quarter net income of $2.1 million, a level 60% below the all time record of $5.2 million established in the comparable prior year quarter. Diluted net income per share of 14 cents compares to 35 cents in the 1998 first quarter (which included 5 cents related to an accounting change effective January 1, 1998). Revenues of $26 million declined 22% as a result of soft market conditions and three vessels out of service for regulatory inspections and construction work. The first quarter of 1998 also included $4 million of revenues generated by a chartered vessel.
Chairman and Chief Executive Officer, Owen E. Kratz noted ``$2.1 million of net income represents the second best level of profitability ever achieved by CDI in the first quarter, traditionally the slowest of the year. Most gratifying was the way in which our salvage strategy contributed to quarterly results. The relationship of Energy Resource Technology (ERT) personnel with the owners of mature properties played a role in the major Sonat salvage contract awarded to Cal Dive. CDI vessels performing abandonment services for fields acquired earlier by ERT provided a paycheck to our offshore hands at a time when most of our competitors were at the dock. We expect the decommissioning market on the Outer Continental Shelf to be a significant growth opportunity in 1999, helping to bridge the gap until the Deepwater market provides the opportunity to fully employ the capabilities which CDI has developed.''
Cal Dive International, Inc. operates a fleet of technically advanced
marine construction support vessels and conducts salvage operations in the
Gulf of Mexico. Energy Resource Technology, Inc., a wholly owned subsidiary,
acquires and operates mature offshore properties as part of decommissioning
CAL DIVE INTERNATIONAL, INC. Comparative Consolidated Statements of Operations Three Months Ended March 31 (000's omitted, except per share data) 1999 1998 Net Revenues $26,006 $33,157 Cost of Sales 20,749 22,594 Gross Profit 5,257 10,563 Selling and Administrative 2,573 2,840 Equity in Earnings of Aquatica, Inc. 100 133 Interest (Income), net & Other (448) (209) Income Before Income Taxes 3,232 8,065 Income Tax Provision 1,145 2,822 Net Income $ 2,087 $ 5,243 Other Financial Data: EBITDA (A) $ 5,544 $ 9,839 Weighted Avg. Shares Outstanding: Basic 14,617 14,535 Diluted 14,995 14,999 Earnings Per Common Share: Basic $ 0.14 $ 0.36 Diluted $ 0.14 $ 0.35 (A) The Company calculates EBITDA as earnings before net interest expense, taxes, depreciation and amortization. EBITDA is a supplemental financial measurement used by the Company and investors in the marine construction industry in the evaluation of its business. Comparative Consolidated Balance Sheets ASSETS (000's omitted) Mar. 31, 1999 Dec. 31, 1998 Current Assets: Cash and cash equivalents $ 39,584 $ 32,843 Accounts receivable 26,437 31,053 Other current assets 12,932 9,190 Total Current Assets 78,953 73,086 Net Property & Equipment 88,869 79,159 Restricted Cash Deposits 2,475 2,408 Investment in Aquatica, Inc. 7,756 7,656 Other Assets 3,430 1,926 Total Assets $181,483 $164,235 Comparative Consolidated Balance Sheets LIABILITIES & SHAREHOLDERS' EQUITY (000's omitted) Mar. 31, 1999 Dec. 31, 1998 Current Liabilities: Accounts payable $ 18,285 $ 15,949 Accrued liabilities 6,805 10,020 Income tax payable 1,971 1,201 Total Current Liabilities 27,061 27,170 Long-Term Debt 0 0 Deferred Income Taxes 13,539 13,539 Decommissioning Liabilities 24,637 9,883 Shareholders' Equity 116,246 113,643 Total Liabilities & Equity $181,483 $164,235
This report and press release include certain statements that may be deemed ``forward looking statements'' under applicable law. Forward looking statements are not statements of historical fact and such statements are not guarantees of future performance or events and involve risks and assumptions that could cause actual results to vary materially from those predicted, including among other things, unexpected delays and operational issues associated with turnkey projects, the price of crude oil and natural gas, weather conditions in offshore markets, change in site conditions, and capital expenditures by customers. The Company strongly encourages readers to note that some or all of the assumptions upon which such forward looking statements are based are beyond the Company's ability to control or estimate precisely and may in some cases be subject to rapid and material change.