Cal Dive Reports Fourth Quarter Earnings of 20 Cents
HOUSTON, Feb. 17 /PRNewswire/ -- Cal Dive International, Inc. (Nasdaq: CDIS) reported fourth quarter net income of $3.2 million, $0.20 per diluted share. This compares to net income of $5.4 million, or $0.36 per share earned in the same period of 1998. While the seasonal slowdown of the quarter and soft market conditions depressed activity levels, CDI revenues of $42.4 million actually increased 14% over the previous fourth quarter. This improvement was due to work on the first ever Deepwater-decommissioning project in the Gulf of Mexico and strong results from Energy Resource Technology (ERT), the company's gas production business.
Annual revenues of $161 million set a new all time Cal Dive record in the midst of one of the most difficult construction markets ever experienced in the Gulf. Net income of $16.9 million was 30% lower than the $24.1 million reported in 1998. Diluted earnings per share of $1.10 declined slightly more than that (32%) in light of the additional shares issued to acquire Aquatica, Inc.
Chairman and Chief Executive Officer Owen Kratz said, "Our people performed at exceptional levels, achieving virtually all of the corporate objectives we set for 1999. They accomplished this even though the industry cratered to a greater extent than we considered possible going into the year. EBITDA of $44.8 million was almost identical to the cash flow of 1998 notwithstanding the 30% decline in net income due to increased revenues and ERT kicking back into high gear. As a result we emerge from 1999 with a strong balance sheet which will enable us to consider creative ways of redefining contractor-customer relationships in the emerging Deepwater Gulf market."
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 Twelve Months Ended Dec. 31, Dec. 31, (000's omitted, 1999 1998 1999 1998 except per share data) Net Revenues $42,374 $37,291 $160,954 $151,887 Cost of Sales 34,059 25,896 123,703 102,678 Gross Profit 8,315 11,395 37,251 49,209 Selling and Administrative 4,116 4,850 13,227 15,801 Equity in Earnings of Aquatica, Inc. 0 1,300 600 2,633 Interest (Income), net and Other 99 (416) (849) (1,103) Income Before Income Taxes 4,100 8,261 25,473 37,144 Income Tax Provision 984 2,910 8,465 13,019 Minority Interest (38) 0 109 0 Net Income $3,154 $5,351 $16,899 $24,125 Other Financial Data EBITDA (A) $9,162 $11,002 $44,805 $45,544 Weighted Avg. Shares Outstanding Basic 15,504 14,564 15,008 14,549 Diluted 15,934 14,900 15,327 14,964 Earnings Per Common Share Basic $0.20 $0.37 $1.13 $1.66 Diluted $0.20 $0.36 $1.10 $1.61 (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) Dec. 31, 1999 Dec. 31, 1998 Current Assets Cash and cash equivalents $ 19,996 $ 32,843 Accounts receivable 51,621 31,053 Other current assets 16,327 9,190 Total Current Assets 87,944 73,086 Net Property & Equipment 134,657 79,159 Decommissioning Deposits 2,474 2,408 Investment in Aquatica, Inc. 0 7,656 Goodwill 13,792 0 Other Assets 4,855 1,926 Total Assets $243,722 $164,235 LIABILITIES & SHAREHOLDERS' EQUITY (000's omitted) Dec. 31, 1999 Dec. 31, 1998 Current Liabilities Accounts payable $ 31,834 $ 15,949 Accrued liabilities 15,833 10,020 Income tax payable 0 1,201 Total Current Liabilities 47,667 27,170 Long-Term Debt 0 0 Deferred Income Taxes 16,837 13,539 Decommissioning Liabilities 26,956 9,883 Other Deferred Costs 1,390 0 Shareholders' Equity 150,872 113,643 Total Liabilities & Equity $243,722 $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.
CONTACT: Jim Nelson, Executive Vice President of Cal Dive International, Inc., 281-618-0400, or fax, 281-618-0501/