HOUSTON, Nov. 3 /PRNewswire/ -- Cal Dive International, Inc. (Nasdaq: CDIS) announced record net income of $9.0 million during the third quarter, or $0.58 per diluted share, in the midst of one of the worst recessions to impact the offshore construction industry. Revenues of $58.5 million nearly equaled those generated in the entire first half of the year. Diluted average common shares outstanding increased by the 700,000 shares issued in conjunction with the August 1, 1999 acquisition of the 55% of Aquatica, Inc. that CDI did not previously own.
Owen Kratz, Chairman and Chief Executive Officer, stated "It is truly gratifying to see the strategy put in place to survive a depressed year like 1999 play out on the field exactly as diagrammed. Over a decade ago we identified salvage operations as a hedge against cyclical downturns in the business; those activities represented 39% of third quarter revenues. We also functioned as prime contractor on two significant Deepwater projects including the first ever decommissioning of a Deepwater field. Most exciting was the unparalleled success of our work at the Diana field in 4,800 feet of water, the first time the industry has moved back out beyond 3,000 feet after addressing the technological issues encountered during 1997 and 1998. The procedures used at Diana confirm the revolutionary design of our Q4000, the first construction vessel specifically designed to work in ultra-deepwater (from 5,000 to 10,000 feet)." The Q4000 is now under construction in Brownsville, TX.
Nine-month revenues of $118.6 million increased 11% if you remove the $8 million associated with the charter of Coflexip vessels from last year's sales numbers. Earnings of $13.7 million decreased $5.0 million or 27% versus the same period of 1998 due to customer spending decreases of 20% to 25%. Diluted earnings per share of 90 cents compares to $1.25 in the first nine months of 1998, a 28% reduction due to the increase in average shares outstanding.
Cal Dive International, Inc. operates a fleet of technically advanced marine construction 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 CDI decommissioning services.
CAL DIVE INTERNATIONAL, INC.
Comparative Consolidated Statements of Operations
Three Months Ended Sept. 30, Nine Months Ended Sept. 30, (000's omitted, except per share data) 1999 1998 1999 1998 Net Revenues $58,470 $42,913 $118,580 $114,596 Cost of Sales 40,515 27,797 89,644 76,782 Gross Profit 17,995 15,116 28,936 37,814 Selling and Administrative 4,083 4,414 9,111 10,951 Equity in Earnings of Aquatica, Inc. 150 700 600 1,333 Interest (Income) Expense, net & Other (78) (253) (948) (687) Income Before Income Taxes 14,100 11,655 21,373 28,883 Income Tax Provision 4,936 4,078 7,481 10,109 Minority Interest 147 0 147 0 Net Income $9,017 $7,577 $13,745 $18,774 Other Financial Data EBITDA(A) $22,599 $13,607 $35,654 $34,542 Weighted Avg. Shares Outstanding Basic 15,215 14,553 14,841 14,544 Diluted 15,641 14,985 15,211 14,977 Earnings Per Common Share Basic $0.59 $0.52 $0.93 $1.29 Diluted $0.58 $0.51 $0.90 $1.25 (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) Sept. 30, 1999 Dec. 31, 1998 Current Assets: Cash and cash equivalents $16,877 $32,843 Accounts receivable 45,781 31,053 Other current assets 12,659 9,190 Total Current Assets 75,317 73,086 Net Property & Equipment 133,468 79,159 Restricted Cash Deposits 2,539 2,408 Investment in Aquatica, Inc. 0 7,656 Goodwill 13,941 0 Other Assets 4,802 1,926 Total Assets $230,067 $164,235 LIABILITIES & SHAREHOLDERS' EQUITY Sept. 30, 1999 Dec. 31, 1998 Current Liabilities: Accounts payable $26,019 $15,949 Accrued liabilities 9,632 10,020 Income tax payable 3,050 1,201 Total Current Liabilities 38,701 27,170 Long-Term Debt 0 0 Deferred Income Taxes 16,162 13,539 Decommissioning Liabilities 28,420 9,883 Minority Interest 147 0 Shareholders' Equity 146,637 113,643 Total Liabilities & Equity $230,067 $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.
SOURCE Cal Dive International, Inc.