HOUSTON, Nov. 3 /PRNewswire-FirstCall/ -- Cal Dive International, Inc. (Nasdaq: CDIS) reported third quarter net income applicable to common shares of $8.9 million or 24 cents per diluted share. Comparable net income a year ago was $2.9 million or 8 cents per diluted share. Third quarter revenues of $104 million increased by $20 million or 24% due to improved oil and gas commodity prices and increased production related to property acquisitions in the second half of last year.
Owen Kratz, Chairman and Chief Executive Officer of Cal Dive, stated, "Oil and gas operations contributed 33% of third quarter revenues, a level targeted when we began implementation of our business model a decade ago. The quarter also highlighted that Cal Dive is producing what we believe are among the best returns on capital invested in oil and gas properties and production facilities in the industry.
"Third quarter utilization of our marine contracting vessels was 72%, up from 61% a year ago, in a 2003 market characterized by significant excess capacity," Mr. Kratz continued. "Such relatively high levels of utilization are due to CDI's ability to market our DP vessels globally and to our production partnering strategy. Fleet utilization should remain solid during the fourth quarter as a number of our DP vessels will be involved in the commissioning of the deepwater Gunnison and Marco Polo fields.
"Cal Dive is poised to realize a return on a quarter of a billion dollars of Gunnison and Marco Polo investments beginning in 2004. The earnings visibility and cash flow provided by our oil and gas activities buffer the uncertainty surrounding the timing of a recovery in the marine contracting businesses."
Nine month revenues of $295 million increased $84 million or 40% over the prior year due to improved oil and gas production and commodity prices, and to the addition of new deepwater assets. Earnings of $23.9 million were 81% better than the prior year. Fully diluted earnings per share of 63 cents increased by 70%.
Cal Dive International, Inc., headquartered in Houston, Texas, 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.
Certain statements in this press release and accompanying shareholder report are "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/A for the year ended December 31, 2002, 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.
CAL DIVE INTERNATIONAL, INC. Comparative Consolidated Statements of Operations Three Months Ended Nine Months Ended (000's omitted, except per share Sept. 30, Sept. 30, data) 2003 2002 2003 2002 Net Revenues: Marine Contracting $69,897 $68,102 $193,108 $172,132 Oil and Gas Production 33,958 15,913 101,486 38,116 Total Revenues 103,855 84,015 294,594 210,248 Cost of Sales: Marine Contracting 62,530 63,322 176,319 149,838 Oil and Gas Production 17,320 9,120 50,877 20,534 Gross Profit 24,005 11,573 67,398 39,876 Selling and Administrative 8,620 6,372 26,201 18,869 Income from Operations 15,385 5,201 41,197 21,007 Interest Expense (Income), net & Other 855 659 3,034 750 Income Before Income Taxes 14,530 4,542 38,163 20,257 Income Tax Provision 5,231 1,590 13,739 7,090 Income Before Change in Accounting Principle 9,299 2,952 24,424 13,167 Cumulative Effect of Change in Accounting Principle, net 0 0 530 0 Net Income 9,299 2,952 24,954 13,167 Preferred Stock Dividends and Accretion 362 0 1,068 0 Net Income Applicable to Common Shareholders $8,937 $2,952 $23,886 $13,167 Other Financial Data: Income from Operations $15,385 $5,201 $41,197 $21,007 Depreciation and Amortization: Marine Contracting 8,443 8,151 24,370 19,137 Oil and Gas Production (including accretion) 9,233 4,529 25,450 9,206 EBITDA (A) $33,061 $17,881 $91,017 $49,350 Weighted Avg. Shares Outstanding: Basic 37,665 37,268 37,618 34,888 Diluted 37,776 37,432 37,715 35,231 Net Income per Common Share Basic: Net Income Before Change in Accounting Principle $0.24 $0.08 $0.62 $0.38 Cumulative Effect Of Change in Accounting Principle $0.00 $0.00 $0.01 $0.00 Net Income Applicable to Common Shareholders $0.24 $0.08 $0.63 $0.38 Diluted: Net Income Before Change in Accounting Principle $0.24 $0.08 $0.62 $0.37 Cumulative Effect Of Change in Accounting Principle $0.00 $0.00 $0.01 $0.00 Net Income Applicable to Common Shareholders $0.24 $0.08 $0.63 $0.37 (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 due to the measurement being similar to performance of operations. Comparative Consolidated Balance Sheets ASSETS Sept. 30, Dec. 31, (000'S omitted) 2003 2002 Current Assets: Cash $2,712 $0 Restricted cash 2,432 2,506 Accounts receivable 97,101 75,418 Other current assets 33,150 38,195 Total Current Assets 135,395 116,119 Net Property & Equipment: Marine Contracting 430,302 418,056 Oil and Gas 173,040 178,295 Goodwill 80,228 79,758 Investment in Deepwater Gateway, LLC 34,373 32,688 Other assets, net 17,057 11,094 Total Assets $870,395 $836,010 LIABILITIES & SHAREHOLDERS' EQUITY Sept. 30, Dec. 31, 2003 2002 Current Liabilities: Accounts payable $54,756 $62,798 Accrued liabilities 37,282 34,790 Current mat of L-T debt 14,109 4,201 Total Current Liabilities 106,147 101,789 Long-term debt 215,439 223,576 Deferred income taxes 87,540 71,208 Decommissioning liabilities 66,673 92,420 Other non-current liabilities 2,025 9,500 Convertible preferred stock 24,437 0 Shareholders' equity 368,134 337,517 Total Liabilities & Equity $870,395 $836,010
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