Owen Kratz, Chairman and Chief Executive Officer of Cal Dive, stated, "We were pleased with market acceptance of the three DP vessels introduced to the market during the quarter: the Q4000 and Intrepid, two new vessels capable of performing construction and well intervention tasks in 10,000 feet of water, and the upgraded Eclipse, a 400-foot mono-hull construction vessel."
"Looking ahead, the uncertainty in the energy markets suggests we are early with these assets and that a significant acceleration in the demand for Deepwater construction services will not occur until late next year. Our growth strategy focuses upon positioning for well operations and the life-of- field services targeted by the Q4000 and the newly acquired Coflexip Well Operations Business Unit. We also continue to aggressively pursue the acquisition of mature oil and gas properties which provide a base of cash flow and earnings as a hedge to the cyclicality of the offshore construction markets. The $87 million equity offer completed in the second quarter provided the funding for this expansion strategy while holding the debt to total capitalization ratio at 40%."
Six month revenues of $126.2 million were $19 million or 18% above the prior year period as the addition of the new Deepwater assets increased Subsea and Salvage Contracting revenues by $40.2 million or 63%. Oil and gas revenues of $22.2 million declined nearly 50% due to a 38% reduction in commodity prices and a 19% decline in production volumes. First half earnings of $10.2 million compare to $18.3 million in the same period of a year ago. Diluted earnings per share were 30 cents versus 55 cents in the year ago period.
Cal Dive International, Inc., headquartered in Houston, TX, is an energy service company specializing in well operations and subsea construction. CDI operates a fleet of technically advanced marine construction vessels and robotics 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.
CAL DIVE INTERNATIONAL, INC. Comparative Consolidated Statements of Operations Three Months Ended Six Months Ended June 30, June 30, (000's omitted, except per share data) 2002 2001 2002 2001 Net Revenues: Subsea and Salvage $59,660 $32,577 $104,030 $63,859 Natural Gas and Oil Production 12,645 16,209 22,203 43,409 Total Revenues 72,305 48,786 126,233 107,268 Cost of Sales Subsea and Salvage 48,826 22,928 86,516 48,098 Natural Gas and Oil Production 6,294 8,944 11,414 19,998 Gross Profit 17,185 16,914 28,303 39,172 Selling and Administrative 6,191 4,863 12,497 10,470 Interest (Income), net & Other (105) 442 91 733 Income Before Income Taxes 11,099 11,609 15,715 27,969 Income Tax Provision 3,885 4,063 5,500 9,789 Minority Interest 0 0 0 (140) Net Income $7,214 $7,546 $10,215 $18,320 Other Financial Data: Depreciation and Amortization: Subsea and Salvage $6,678 $3,541 $10,986 $6,747 Natural Gas and Oil Production 2,672 4,881 4,677 12,070 EBITDA (A) 21,224 20,132 32,178 47,025 Weighted Avg. Shares Outstanding: Basic 34,692 32,470 33,676 33,130 Diluted 35,003 33,212 33,976 33,388 Earnings Per Common Share: Basic $0.21 $0.23 $0.30 $0.55 Diluted $0.21 $0.23 $0.30 $0.55 (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. EBITDA should not be considered as an alternative to net income, as an indicator of CDI's operating performance or as an alternative to cash flow as a better measure of liquidity. Comparative Consolidated Balance Sheets ASSETS (000'S omitted) June 30, 2002 Dec. 31, 2001 Current Assets: Cash and cash equivalents $45,882 $37,123 Accounts receivable 77,746 56,186 Other current assets 24,782 20,055 Total Current Assets 148,410 113,364 Net Property & Equipment: Subsea and salvage 383,563 302,964 Natural gas and oil production 59,030 28,348 Goodwill 60,151 14,973 Other Assets 26,852 13,473 Total Assets $678,006 $473,122 LIABILITIES & SHAREHOLDERS' EQUITY June 30, 2002 Dec. 31, 2001 Current Liabilities: Accounts payable $64,330 $42,252 Accrued liabilities 22,150 21,011 Current mat of L-T debt 4,365 1,500 Total Current Liabilities 90,845 64,763 Long-Term debt 144,033 98,048 Deferred income taxes 61,727 54,631 Decommissioning liabilities 41,137 29,331 Redeemable stock in sub 7,688 0 Shareholders' equity 332,576 226,349 Total Liabilities & Equity $678,006 $473,122This report and press release include certain statements that may be deemed "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 for the year ended December 31, 2001, 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.
SOURCE Cal Dive International, Inc.
CONTACT: Jim Nelson, Vice Chairman of Cal Dive International, Inc., +1-281-618-0400, or fax, +1-281-618-0505