HOUSTON, Nov. 1 /PRNewswire/ -- Cal Dive International, Inc. (Nasdaq: CDIS) reported third quarter net income of $5.2 million or $0.16 per diluted share. A year ago, net income of $7.7 million, or $0.24 per diluted share, was driven by gas and oil operations that benefited from rapidly increasing natural gas prices. Third quarter revenues of $51.6 million increased by 4% as a 50% increase in marine contracting revenues offset the impact of substantially lower natural gas prices and volumes.
Owen Kratz, Chairman and Chief Executive Officer of Cal Dive, stated, "The revenue-smoothing aspect of our strategy is again evident as the pendulum swings from strength in gas and oil operations to subsea contracting. This unique mix, which differentiates Cal Dive from others in the offshore construction and oilfield service sectors, resulted in Forbes magazine recognizing Cal Dive as one of the best performing companies in America. We are particularly proud of this award as it recognizes our consistent earnings -- and an average 15% return on equity -- over the last five years. Our employees achieved these outstanding results despite two dramatic downturns in the offshore construction industry."
Nine-month revenues of $158.8 million increased more than $29 million or 22% over the prior year due to a 28% improvement in marine contracting activity. Earnings of $23.6 million were up 62% due to substantially improved contracting margins and historically high commodity prices earlier in the year. Diluted earnings per share of 71 cents compares to 45 cents in the first nine months of 2000.
Mr. Kratz continued: "Many questioned our carrying significant cash balances since becoming a public company in 1997, wondering why we had not pursued immediate growth by leveraging our pristine balance sheet. We have always targeted 2002 as the time when we anticipate a significant acceleration in the demand for our Deepwater services. As a result, we are in the process of investing $250 million in the construction of the Q4000, conversion of the Sea Sorceress, and acquisitions of the Eclipse and Mystic Viking. In short, we believe that the time to strike is now with several innovative aspects of this Deepwater strategy still in the works."
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 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 Nine Months Ended Sept. 30, Sept. 30, (000's omitted, except per share data) 2001 2000 2001 2000 Net Revenues: Subsea and Salvage $39,356 $26,274 $103,215 $80,582 Natural Gas and Oil Production 12,214 23,433 55,623 49,135 Total Revenues 51,570 49,707 158,838 129,717 Cost of Sales Subsea and Salvage 30,025 23,437 78,849 70,197 Natural Gas and Oil Production 8,338 9,084 27,610 23,519 Gross Profit 13,207 17,186 52,379 36,001 Selling and Administrative 4,969 5,032 15,439 14,281 Interest (Income), net and Other 170 391 763 (326) Income Before Income Taxes 8,068 11,763 36,177 22,046 Income Tax Provision 2,824 4,077 12,613 7,486 Net Income $5,244 $7,686 $23,564 $14,560 Other Financial Data: Depreciation and Amortization: Subsea and Salvage $4,027 $2,857 $10,774 $8,651 Natural Gas and Oil Production 4,476 6,161 16,546 13,598 EBITDA (A) 16,401 20,771 63,426 43,838 Weighted Avg. Shares Outstanding: Basic 32,551 31,506 32,443 31,384 Diluted 33,006 32,366 33,083 32,202 Earnings Per Common Share: Basic $0.16 $0.24 $0.73 $0.46 Diluted $0.16 $0.24 $0.71 $0.45
(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.
Comparative Consolidated Balance Sheets ASSETS (000's omitted) Sept. 30, 2001 Dec. 31, 2000 Current Assets: Cash and cash equivalents $38,343 $47,462 Accounts receivable 51,241 44,826 Income tax receivable 0 10,014 Other current assets 20,571 20,975 Total Current Assets 110,155 123,277 Net Property & Equipment 290,941 198,542 Goodwill 15,156 12,878 Other Assets 12,985 12,791 Total Assets $429,237 $347,488 LIABILITIES & SHAREHOLDERS' EQUITY Sept. 30, 2001 Dec. 31, 2000 Current Liabilities: Accounts payable $31,680 $25,461 Accrued liabilities 18,868 21,435 Income tax payable 0 0 Current Mat of L-T Debt 1,500 0 Total Current Liabilities 52,048 46,896 Long-Term Debt 77,083 40,054 Deferred Income Taxes 48,280 38,272 Decommissioning Liabilities 28,668 27,541 Shareholders' Equity 223,158 194,725 Total Liabilities & Equity $429,237 $347,488
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, Vice Chairman of Cal Dive International, Inc., +1-281-618-0400