Owen Kratz, Chairman and Chief Executive Officer of Cal Dive, stated, "The combination of hurricanes and tropical weather on top of an already depressed Gulf of Mexico construction market resulted in third quarter earnings below the levels which Cal Dive has historically generated. However, the 63% revenue increase provides critical mass which can be effectively shaped into enhanced profitability through our current focus upon process improvement. This contrasts with many companies suffering top line decreases during this period of economic downturn in the United States."
Mr. Kratz continued, "The quarter witnessed a significant expansion of our counter-cyclical business model whereby Cal Dive vessels work to enhance the value of ERT oil and gas operations. Two CDI vessels assisted in establishing first production at East Cameron 374 as we effectively proved up our PUD model, creating value from smaller reservoirs where exploratory drilling has previously been completed. The significant acquisitions of mature properties from Shell and Amerada Hess were due in part to those customers being comfortable that CDI's salvage assets and personnel could effectively decommission these large fields."
Nine month revenues of $210.4 million increased $51.6 million or 32% over the prior year due to the addition of new deepwater assets. Earnings of $13.2 million are 44% below those of the prior year due to lower contracting margins and a 26% decline in the net realized price for oil and gas production.
Cal Dive International, Inc. is an energy service company specializing in well operations and subsea construction. CDI operates a fleet of technically advanced marine construction vessels and robotics worldwide 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) 2002 2001 2002 2001 Net Revenues: Subsea and Salvage $68,102 $39,356 $172,132 $103,215 Oil and Gas Production 16,053 12,214 38,256 55,623 Total Revenues 84,155 51,570 210,388 158,838 Cost of Sales: Subsea and Salvage 63,322 30,025 149,838 78,849 Oil and Gas Production 9,120 8,338 20,534 27,610 Gross Profit 11,713 13,207 40,016 52,379 Selling and Administrative 6,512 4,969 19,009 15,439 Interest Expense, net & Other 659 170 750 763 Income Before Income Taxes 4,542 8,068 20,257 36,177 Income Tax Provision 1,590 2,824 7,090 12,613 Net Income $2,952 $5,244 $13,167 $23,564 Other Financial Data: Depreciation and Amortization: Subsea and Salvage $8,151 $4,027 $19,137 $10,774 Oil and Gas Production 4,529 4,476 9,206 16,546 EBITDA (A) 17,646 16,401 49,824 63,426 Weighted Avg. Shares Outstanding: Basic 37,268 32,551 34,888 32,443 Diluted 37,432 33,006 35,231 33,083 Earnings Per Common Share: Basic $0.08 $0.16 $0.38 $0.73 Diluted $0.08 $0.16 $0.37 $0.71 (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, 2002 Dec. 31, 2001 Current Assets: Cash and cash equivalents $2,287 $37,123 Accounts receivable 71,528 56,186 Other current assets 23,516 20,055 Total Current Assets 97,331 113,364 Net Property & Equipment: Subsea and salvage 406,423 302,964 Oil and gas properties 171,559 28,348 Goodwill 86,985 14,973 Other Assets 43,534 13,473 Total Assets $805,832 $473,122 LIABILITIES & SHAREHOLDERS' EQUITY (000'S omitted) Sept. 30, 2002 Dec. 31, 2001 Current Liabilities: Accounts payable $59,644 $42,252 Accrued liabilities 21,880 21,011 Current maturities 4,044 1,500 Total Current Liabilities 85,568 64,763 Long-Term Debt 221,243 98,048 Deferred Income Taxes 63,719 54,631 Decommissioning Liabilities 93,387 29,331 Redeemable Stock 7,528 0 Shareholders' Equity 334,387 226,349 Total Liabilities & Equity $805,832 $473,122This 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, or fax, +1-281-618-0505