FlashResults Cal Dive International, Inc. (Nasdaq: CDIS) (Numbers in Thousands, Except Per Share Data) 1st quarter ended 1st quarter ended 3/31/2003 YTD 3/31/2002 YTD Sales $88,900 $88,900 $53,928 $53,928 Net Income $6,038 $6,038 $3,001 $3,001 Average Shares 37,601 37,601 32,932 32,932 EPS $0.16 $0.16 $0.09 $0.09
Cal Dive International, Inc. (Nasdaq: CDIS) reported first quarter net income of $6.0 million or $0.16 per diluted share. Adoption of SFAS No. 143, Accounting for Asset Retirement Obligations, added $530,000 or one cent to first quarter 2003 results. A year ago net income was $3.0 million or $0.09 per diluted share. First quarter revenues of $88.9 million increased 65% over the year ago quarter as the company is completing a $750 million, three-year capital expansion plan.
Owen Kratz, Chairman and Chief Executive Officer of Cal Dive, stated, "The countercyclical hedge provided by our strategic integration of subsea contracting and oil & gas operations was particularly evident in first quarter results. Earnings associated with last year's mature property acquisitions carried the current quarter in contrast to a year ago when CDI contracting operations provided 60% of our profitability. Our Deepwater initiatives at Gunnison and Marco Polo remain on a schedule to come on line early next year. The visibility and stability provided by our oil and gas business provided the funding to expand our contracting revenues by 120% in just the last three years."
Mr. Kratz continued, "Offshore construction is a cyclical business. The Cal Dive management team picked its way through the industry downturns in 1987, 1992 and 2000. In contrast to those earlier periods, today we have strong commodity prices and a diversified asset base designed to weather the downdrafts. We are satisfied with our position in the market and look forward to reaping the harvest of our aggressive capital program."
Cal Dive International, Inc. is an energy service company specializing in well operations and subsea construction. CDI operates a fleet of technically advanced marine construction vessels and robotics worldwide and conducts salvage operations in the Gulf of Mexico. Energy Resource Technology, Inc., a wholly owned subsidiary, acquires and operates mature and non-core offshore oil and gas properties.
Certain statements in this press release are "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither statements of historical fact nor guarantees of future performance or events. Forward-looking statements involve risks and assumptions that could cause actual results to vary materially from those predicted. Among other things, these include unexpected delays and operational issues associated with turnkey projects, the price of crude oil and natural gas, weather conditions in offshore markets, changes in site conditions and capital expenditures by customers. For a more complete discussion of these risk factors, see our Annual Report on Form 10-K/A for the year ended December 31, 2002, filed with the Securities and Exchange Commission. 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.
CAL DIVE INTERNATIONAL, INC. Comparative Consolidated Statements of Operations Three Months Ended March 31, (000's omitted, except per share data) 2003 2002 Net Revenues: Marine Contracting $54,229 $44,370 Oil and Gas Production 34,671 9,558 Total Revenues 88,900 53,928 Cost of Sales: Marine Contracting 54,243 37,690 Oil and Gas Production 15,461 5,120 Gross Profit 19,196 11,118 Selling and Administrative 8,953 6,306 Income from Operations 10,243 4,812 Interest Expense, net & Other 1,101 196 Income Before Income Taxes 9,142 4,616 Income Tax Provision 3,291 1,615 Income Before Change in Accounting Principle 5,851 3,001 Cumulative Effect of Change in Accounting Principle, net 530 0 Net Income 6,381 3,001 Preferred Stock Dividends and Accretion 343 0 Net Income Applicable to Common Shareholders $6,038 $3,001 Other Financial Data: Income from Operations $10,243 $4,812 Depreciation and Amortization: Marine Contracting 7,825 4,308 Oil and Gas Production (including accretion) 8,203 2,005 EBITDA (A) $26,271 $11,125 Weighted Avg. Shares Outstanding: Basic 37,553 32,648 Diluted 37,601 32,932 Net Income per Common Share Basic: Net Income Before Change in Accounting Principle $0.15 $0.09 Cumulative Effect Of Change in Accounting Principle $0.01 $0.00 Net Income Applicable to Common Shareholders $0.16 $0.09 Diluted: Net Income Before Change in Accounting Principle $0.15 $0.09 Cumulative Effect Of Change in Accounting Principle $0.01 $0.00 Net Income Applicable to Common Shareholders $0.16 $0.09 (A) The Company calculates EBITDA as earnings before net interest expense, taxes, depreciation and amortization. EBITDA is a supplemental financial measurement used by CDI and investors in the marine construction industry in the evaluation of its business due to the measurement being similar to operating cash flow. Comparative Consolidated Balance Sheets ASSETS (000'S omitted) March 31, 2003 Dec. 31, 2002 Current Assets: Cash and cash equivalents $2,432 $2,506 Accounts receivable 89,853 75,418 Other current assets 29,717 28,266 Total Current Assets 122,002 106,190 Net Property & Equipment Subsea and salvage 425,576 418,056 Oil and Gas 154,570 178,295 Goodwill 79,069 79,758 Other Assets 90,569 84,733 Total Assets $871,786 $867,032 LIABILITIES & SHAREHOLDERS' EQUITY March 31, 2003 Dec. 31, 2002 Current Liabilities: Accounts payable $62,554 $62,798 Accrued liabilities 35,812 34,790 Current Mat of L-T Debt 4,291 4,201 Total Current Liabilities 102,657 101,789 Long-Term Debt 214,934 223,576 Deferred Income Taxes 108,374 102,230 Decommissioning Liabilities 68,235 92,420 Redeemable Stock & Other 9,518 9,500 Convertible Preferred Stock 24,213 0 Shareholders' Equity 343,855 337,517 Total Liabilities & Equity $871,786 $867,032
Source: Cal Dive International, Inc.
CONTACT: Jim Nelson, Vice Chairman of Cal Dive International, Inc., +1-281-618-0400