HOUSTON, Nov. 2 /PRNewswire-FirstCall/ -- Cal Dive International, Inc. (Nasdaq: CDIS) reported third quarter net income of $22.8 million, or $0.59 per diluted share, a 146% improvement over the year ago net income of $8.9 million, or $0.24 per diluted share. Third quarter revenues of $132.0 million increased 27% over the year ago quarter due primarily to improved levels of oil and gas production and higher commodity prices.
Summary of Results (in thousands, except per share amounts and percentages) Third Quarter Second Quarter Nine Months 2004 2003 2004 2004 2003 Revenues $131,897 $103,855 $127,701 $380,403 $294,594 Gross Profit 45,726 24,005 41,415 118,883 67,398 35% 23% 32% 31% 23% Net Income 22,794 8,937 18,208 54,647 23,886 17% 9% 14% 14% 8% Diluted Earnings per share 0.59 0.24 0.47 1.41 0.63
Owen Kratz, Chairman and Chief Executive Officer of Cal Dive, stated, "This was our second successive quarter of record earnings and it is especially noteworthy that we achieved an overall EBITDA margin of 49%. Although the contributions from our Oil and Gas Production segment were flat compared with the second quarter due to the impact of Hurricane Ivan, the performance of the Marine Contracting segment improved sequentially due to seasonality and a gradually improving marketplace. The contribution from our new Production Facilities segment ramped up as expected following the mid-July commencement of production at Marco Polo.
"Following the two record quarters, and with the Marine Contracting segment benefiting from the fourth quarter clean up work, created by Hurricane Ivan, we now estimate 2004 earnings to be between $1.90 and $2.00 per share."
- Revenues: The $28.0 million increase in year-over-year third quarter revenues reflects significantly higher oil and gas production and increases in commodity prices.
- Margins: Gross profit margin of 35% was twelve points better than the year ago quarter due primarily to the increased commodity prices and an improved market for the Marine Contracting fleet, especially the Q4000.
- SG&A: $10.9 million increased $2.3 million from the same period a year ago due to the new Marine Contracting compensation system and the ERT incentive compensation program. With this increase, SG&A was 8% of third quarter revenues, flat with the year ago level.
- Equity in Earnings: $3.1 million reflects our share of Deepwater Gateway, L.L.C.'s earnings for the quarter. Tariff revenue began this quarter following the beginning of production at the Marco Polo TLP in mid-July.
- Debt: EBITDA of $64.2 million for the third quarter enabled us to reduce total debt to $149.7 million (from $183 million at June 30, 2004) and build $49.9 million of unrestricted cash. This represents a debt to book capitalization ratio of 23% and a net debt (total debt less unrestricted cash) to book capitalization ratio of 17%. During the third quarter we closed a new $150 million revolving credit facility with a syndicate of banks which was undrawn upon as of September 30, 2004.
Further details are provided in the slide presentation for Cal Dive's quarterly conference call (see the Investor Relations page of http://www.caldive.com ). The call, scheduled for 9:00 a.m. Central Standard Time on Wednesday, November 3 will be webcast live. A replay will be available from the Audio Archives page.
Cal Dive International, Inc., headquartered in Houston, Texas, is an energy service company which provides alternate solutions to the oil and gas industry worldwide for marginal field development, alternative development plans, field life extension and abandonment, with service lines including marine diving services, robotics, well operations, facilities ownership and oil and gas production.
This press release and attached presentation 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" within the meaning of the Private Securities Litigation Reform Act of 1995, 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.
CAL DIVE INTERNATIONAL, INC. Comparative Condensed Consolidated Statements of Operations Three Months Ended Nine Months Ended (000's omitted, except Sept. 30, Sept. 30, per share data) 2004 2003 2004 2003 (unaudited) Net Revenues $131,987 $103,855 $380,403 $294,594 Cost of Sales 86,261 79,850 261,520 227,196 Gross Profit 45,726 24,005 118,883 67,398 Selling and Administrative 10,926 8,620 34,746 26,201 Income from Operations 34,800 15,385 84,137 41,197 Equity in Earnings (Losses) of Deepwater Gateway, L.L.C. 3,062 --- 4,372 (107) Interest Expense, net & Other 838 855 3,635 2,927 Income Before Income Taxes 37,024 14,530 84,874 38,163 Income Tax Provision 13,237 5,231 28,486 13,739 Income Before Change in Accounting Principle 23,787 9,299 56,388 24,424 Cumulative Effect of Change in Accounting Principle, net --- --- --- 530 Net Income 23,787 9,299 56,388 24,954 Preferred Stock Dividends and Accretion 993 362 1,741 1,068 Net Income Applicable to Common Shareholders $22,794 $8,937 $54,647 $23,886 Other Financial Data: Income from Operations $34,800 $15,385 $84,137 $41,197 Equity in Earnings (Losses) of Deepwater Gateway, L.L.C. 3,062 --- 4,372 (107) Depreciation and Amortization: Marine Contracting 9,049 8,223 26,862 24,371 Oil and Gas Production 17,316 9,245 52,083 25,450 EBITDA (A) $64,227 $32,853 $167,454 $90,911 Weighted Avg. Shares Outstanding: Basic 38,294 37,665 38,141 37,618 Diluted 39,418 37,776 39,413 37,715 Earnings Per Share: Basic $0.60 $0.24 $1.43 $0.63 Diluted $0.59 $0.24 $1.41 $0.63 (A) The Company calculates EBITDA as earnings before net interest expense, taxes, depreciation and amortization. EBITDA and EBITDA margin (defined as EBITDA divided by net revenue) are supplemental non-GAAP financial measurements used by CDI and investors in the marine construction industry in the evaluation of its business due to the measurements being similar to income from operations. Comparative Condensed Consolidated Balance Sheets ASSETS (000's omitted) Sept. 30, 2004 Dec. 31, 2003 (unaudited) Current Assets: Cash and equivalents $49,859 $8,811 Accounts receivable 98,945 96,607 Other current assets 44,761 25,232 Total Current Assets 193,565 130,650 Net Property & Equipment: Marine Contracting 413,826 420,834 Oil and Gas Production 171,562 197,969 Production Facilities - Deepwater Gateway 54,481 34,517 Goodwill 82,682 81,877 Other assets, net 28,057 16,995 Total Assets $944,173 $882,842 LIABILITIES & SHAREHOLDERS' EQUITY Sept. 30, 2004 Dec. 31, 2003 (unaudited) Current Liabilities: Accounts payable $39,235 $50,897 Accrued liabilities 65,884 36,850 Current mat of L-T debt 8,765 16,199 Total Current Liabilities 113,884 103,946 Long-term debt 140,919 206,632 Deferred income taxes 115,120 89,274 Decommissioning liabilities 73,538 75,269 Other long term liabilities 1,353 2,042 Convertible preferred stock 54,549 24,538 Shareholders' equity 444,810 381,141 Total Liabilities & Equity $944,173 $882,842
SOURCE Cal Dive International, Inc.
CONTACT: Wade Pursell, Chief Financial Officer of Cal Dive International, Inc., +1-281-618-0400, or fax, +1-281-618-0505