HOUSTON, Nov. 1 /PRNewswire/ -- Cal Dive International, Inc. (Nasdaq: CDIS) reported third quarter net income of $7.7 million, $0.47 per diluted share, the second highest level of quarterly income in its history. This occurred despite a slowdown in offshore construction activity to its lowest point in several years. Revenues of $49.7 million declined by $8.8 million from the third quarter last year when two major construction projects (Diana and Cooper) were in progress. The increase in fully diluted shares outstanding reflects the shares issued to acquire Aquatica, Inc. and the exercise of stock options.
Owen Kratz, Chairman and Chief Executive Officer, stated, "The number of mobile offshore rigs at work in the Gulf of Mexico began to increase significantly in the third quarter last year. The most recent Baker Hughes rig count is at the highest level in almost a decade. However, the related construction and commissioning of new production has yet to funnel through to our sector. As a result virtually all of our peer group are reporting losses or nominal returns on Gulf of Mexico operations.
"The profitability of Cal Dive stands out as the exception in these volatile markets as our production contracting business provides CDI shareholders a unique, countercyclical hedge. This enables the Company to deliver superior returns while waiting for both Deepwater and Shelf construction activity to kick in. Despite a much more competitive market in 2000, Cal Dive generated the same level of profitability in the third quarter (15% of revenues) and thus far in 2000 (11%) as for the same periods a year ago."
Nine month revenues of $129.7 million increased more than $11 million or 9% over the prior year due to the significant improvement in the production operations of Energy Resource Technology. Earnings of $14.6 million were up 6%, with the smaller percentage increase due to lower levels of CDI contracting profitability. Diluted earnings per share of 90 cents is identical to that reported in the first nine months of 1999.
Cal Dive International, Inc. is an energy service company specializing in 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 (000's omitted, except Sept. 30, Sept. 30, per share data) 2000 1999 2000 1999 Net Revenues: Subsea and Salvage $26,274 $42,861 $80,582 $95,678 Natural Gas and Oil Production 23,433 15,609 49,135 22,902 Total Revenues 49,707 58,470 129,717 118,580 Cost of Sales 32,521 40,515 93,716 89,644 Gross Profit 17,186 17,955 36,001 28,936 Selling and Administrative 5,032 4,083 14,281 9,111 Interest (Income), net and Other 505 (228) 332 (1,548) Income Before Income Taxes 11,649 14,100 21,388 21,373 Income Tax Provision 4,077 4,936 7,486 7,481 Minority Interest (114) 147 (658) 147 Net Income $7,686 $9,017 $14,560 $13,745 Other Financial Data: Depreciation and Amortization: Subsea and Salvage $2,857 $2,660 $8,651 $6,825 Natural Gas and Oil Production 6,161 6,163 13,598 8,639 EBITDA (A) 20,771 22,599 43,838 35,654 Weighted Avg. Shares Outstanding: Basic 15,753 15,215 15,692 14,841 Diluted 16,183 15,641 16,101 15,211 Earnings Per Common Share: Basic $0.49 $0.59 $0.93 $0.93 Diluted $0.47 $0.58 $0.90 $0.90
(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 LIABILITIES & SHAREHOLDERS' EQUITY (000's omitted) Sept. 30, Dec. 31, Sept. 30, Dec. 31, 2000 1999 2000 1999 Current Assets: Current Liabilities: Cash and cash equivalents $52,786 $19,996 Accounts payable $29,153 $31,834 Accounts receivable 39,529 51,621 Accrued liabilities 20,151 17,223 Other current assets 22,222 16,327 Income tax payable 989 0 Total Current Total Current Assets 114,537 87,944 Liabilities 50,293 49,057 Long-Term Debt 40,054 0 Net Property & Deferred Income Equipment 181,982 134,657 Taxes 20,937 16,837 Goodwill 13,357 13,792 Decommissioning Liabilities 27,477 26,956 Other Assets 13,544 7,329 Shareholders' Equity 184,659 150,872 Total Assets $323,420 $243,722 Total Liabilities & Equity $323,420 $243,722
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., 281-618-0400/