FlashResults Cal Dive International, Inc. (CDIS) (Numbers in Thousands, Except Per Share Data) 1st quarter ended 1st quarter ended 3/31/2004 YTD 3/31/2003 YTD Sales $120,714 $120,714 $88,900 $88,900 Net Income $13,645 $13,645 $6,038 $6,038 Average Shares 39,150 39,150 37,601 37,601 EPS $0.36 $0.36 $0.16 $0.16
Cal Dive International, Inc. (Nasdaq: CDIS) reported record first quarter net income of $13.6 million, or $0.36 per diluted share, an increase of 125% over year ago net income of $6.0 million or $0.16 per diluted share. Approximately 3 cents of current quarter earnings per share are attributable to a portion of the Q4000 construction costs qualifying for the Research & Development tax credit. First quarter revenues of $120.7 million increased 36% over the year ago quarter due to improved levels of oil and gas production and DP vessel utilization.
Owen Kratz, Chairman and Chief Executive Officer of Cal Dive, stated, "Record oil and gas production of 10 BCFe reflects three aspects of our strategy to grow the scope of our oil and gas business: well exploitation to enhance production from mature properties, successful PUD developments, and initial production from CDI's interest in the deepwater Gunnison field. We are aggressively pursuing a fourth element of this strategy: exporting the ERT model to other basins of the world.
"Our Marine Contracting people did a great job securing 87% utilization for the four large DP vessels added to the fleet in 2002 (the Q4000, Seawell, Intrepid and Eclipse). This utilization enabled our contracting business to generate positive returns in a quarter when weather typically limits activity in our two major markets."
Mr. Kratz continued, "The record earnings in the first quarter were achieved without any contribution from our new business segment, the ownership of production facilities. Mechanical completion of the Marco Polo TLP was established March 13. This event triggers the monthly fixed demand charge in the second quarter, with tariff-related income expected around the end of June. A binding Memorandum of Understanding has been signed to process production from the nearby K2 field and we are actively involved in negotiations to tie back production from other fields in the vicinity."
Cal Dive International, Inc., headquartered in Houston, Texas, 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.
This press release and accompanying shareholder report 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, 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; as 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, 2003. We assume no obligation and do not intend to update these forward-looking statements.
[tables follow] CAL DIVE INTERNATIONAL, INC. Comparative Condensed Consolidated Statements of Operations Three Months Ended Mar. 31, (000's omitted, except per share data) 2004 2003 (unaudited) Net Revenues: Marine Contracting $65,519 $54,229 Oil and Gas Production 55,195 34,671 Total Revenues 120,714 88,900 Cost of Sales: Marine Contracting 61,547 54,243 Oil and Gas Production 27,426 15,461 Gross Profit 31,741 19,196 Selling and Administrative 11,158 8,953 Income from Operations 20,583 10,243 Interest Expense (Income), net & Other 1,555 1,101 Income Before Income Taxes 19,028 9,142 Income Tax Provision 5,019 3,291 Income Before Change in Accounting Principle 14,009 5,851 Cumulative Effect of Change in Accounting Principle, net 0 530 Net Income 14,009 6,381 Preferred Stock Dividends and Accretion 364 343 Net Income Applicable to Common Shareholders $13,645 $6,038 Other Financial Data: Income from Operations $20,583 $10,243 Depreciation and Amortization: Marine Contracting 8,900 7,825 Oil and Gas Production 17,500 8,203 EBITDA (A) $46,983 $26,271 Weighted Avg. Shares Outstanding: Basic 37,946 37,553 Diluted 39,150 37,601 Earnings Per Share: Basic $0.36 $0.16 Diluted $0.36 $0.16 (A) The Company calculates EBITDA as earnings before net interest expense, taxes, depreciation and amortization. EBITDA is a supplemental non-GAAP 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 performance of operations. Comparative Condensed Consolidated Balance Sheets ASSETS (000'S omitted) Mar. 31, 2004 Dec. 31, 2003 (unaudited) Current Assets: Cash and equivalents $7,252 $8,811 Accounts receivable 101,077 96,607 Other current assets 28,066 25,232 Total Current Assets 136,395 130,650 Net Property & Equipment: Marine Contracting 422,971 420,834 Oil and Gas 188,273 197,969 Production Facilities - Deepwater Gateway 40,653 34,517 Goodwill 82,433 81,877 Other assets, net 18,223 16,995 Total Assets $888,948 $882,842 LIABILITIES & SHAREHOLDERS' EQUITY Mar. 31, 2004 Dec. 31, 2003 (unaudited) Current Liabilities: Accounts payable $39,787 $50,897 Accrued liabilities 49,390 36,850 Current mat of L-T debt 31,732 (B) 16,199 Total Current Liabilities 120,909 103,946 Long-term debt 172,614 206,632 Deferred income taxes 95,063 89,274 Decommissioning liabilities 75,141 75,269 Other long term liabilities 1,330 2,042 Convertible preferred stock 24,652 24,538 Shareholders' equity 399,239 381,141 Total Liabilities & Equity $888,948 $882,842 (B) Reflects $15.9 million relating to the Company's revolving credit facility (which expires February 2005). A new revolving credit facility is currently being negotiated and should be in place later this year.
SOURCE Cal Dive International, Inc.
Jim Nelson, vice chairman of Cal Dive International, Inc., +1-281-618-0400