Press Releases
Helix reported Adjusted EBITDA1 of
Summary of Results ($ in thousands, except per share amounts, unaudited) |
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Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||
12/31/2017 | 12/31/2016 | 9/30/2017 | 12/31/2017 | 12/31/2016 | |||||||||||||||||||||
Revenues | $ | 163,266 | $ | 128,031 | $ | 163,260 | $ | 581,383 | $ | 487,582 | |||||||||||||||
Gross Profit | $ | 23,483 | $ | 17,604 | $ | 21,141 | $ | 62,166 | $ | 46,516 | |||||||||||||||
14 | % | 14 | % | 13 | % | 11 | % | 10 | % | ||||||||||||||||
Goodwill Impairment | $ | - | $ | (45,107 | ) | $ | - | $ | - | $ | (45,107 | ) | |||||||||||||
Non-cash Losses on Equity Investment | $ | (1,800 | ) | $ | (1,674 | ) | $ | - | $ | (1,800 | ) | $ | (1,674 | ) | |||||||||||
Net Income (Loss) | $ | 50,580 | $ | (54,413 | ) | $ | 2,290 | $ | 30,052 | $ | (81,445 | ) | |||||||||||||
Diluted Earnings (Loss) Per Share | $ | 0.34 | $ | (0.46 | ) | $ | 0.02 | $ | 0.20 | $ | (0.73 | ) | |||||||||||||
Adjusted EBITDA1 | $ | 32,415 | $ | 26,889 | $ | 30,452 | $ | 107,216 | $ | 89,544 | |||||||||||||||
1 Adjusted EBITDA is a non-GAAP measure. See reconciliation below.
Segment Information, Operational and Financial Highlights ($ in thousands, unaudited) |
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Three Months Ended | |||||||||||||||
12/31/2017 | 12/31/2016 | 9/30/2017 | |||||||||||||
Revenues: | |||||||||||||||
Well Intervention | $ | 107,122 | $ | 79,738 | $ | 111,522 | |||||||||
Robotics | 50,677 | 40,775 | 47,049 | ||||||||||||
Production Facilities | 16,387 | 17,791 | 16,380 | ||||||||||||
Intercompany Eliminations | (10,920 | ) | (10,273 | ) | (11,691 | ) | |||||||||
Total | $ | 163,266 | $ | 128,031 | $ | 163,260 | |||||||||
Income (Loss) from Operations: | |||||||||||||||
Well Intervention | $ | 15,377 | $ | 7,723 | $ | 16,906 | |||||||||
Robotics | (4,976 | ) | (5,476 | ) | (9,365 | ) | |||||||||
Production Facilities | 7,448 | 8,636 | 7,660 | ||||||||||||
Goodwill Impairment | - | (45,107 | ) | - | |||||||||||
Corporate / Other | (11,334 | ) | (10,600 | ) | (10,633 | ) | |||||||||
Intercompany Eliminations | 243 | 170 | 199 | ||||||||||||
Total | $ | 6,758 | $ | (44,654 | ) | $ | 4,767 |
Business Segment Results
-
Well Intervention revenues decreased
$4.4 million , or 4%, in the fourth quarter of 2017 from the third quarter of 2017 primarily due to lower utilization of the Q4000 and our vesselsin theNorth Sea , offset in part by a full quarter of Q5000 operations for BP, commencement of the Siem Helix 2 and utilization of our 10K intervention riser system rental unit in December. Overall, Well Intervention vessel utilization decreased to 74% in the fourth quarter of 2017 from 88% in the third quarter of 2017.
In the
Vessel utilization in the Gulf of
The Siem Helix 1 was utilized 98% in the fourth quarter of 2017 compared to 96% in the third quarter of 2017. The Siem Helix 2 commenced operations mid-December and was utilized 53% during the period. The vessel experienced some start up downtime, but was on operational rates at the end of the quarter.
Robotics revenues increased 8% in the fourth quarter of 2017 from the third quarter of 2017. Chartered vessel utilization increased to 85%, including 99 spot vessel days, in the fourth quarter of 2017 from 80%, including 51 spot vessel days, in the third quarter of 2017. ROV asset utilization decreased to 41% in the fourth quarter of 2017 from 46% in the third quarter of 2017. Five ROVs were retired at the beginning of the fourth quarter of 2017.
Other Expenses
-
Selling, general and administrative expenses were
$16.7 million , or 10.2% of revenue, in the fourth quarter of 2017 compared to$16.4 million , or 10.0% of revenue, in the third quarter of 2017. The increase was primarily attributable to costs associated with our incentive compensation plans. -
The Tax Cuts and Jobs Act of 2017 became effective on
December 22, 2017 and significantly modified U.S. corporate income tax law. The new law reduces the U.S. corporate income tax rate to 21% and establishes a territorial tax system, which includes a one-time mandatory tax on previously deferred foreign earnings of certain non-U.S. subsidiaries. As a result of the tax law changes, Helix recognized an estimated$51.6 million net deferred tax benefit in the fourth quarter of 2017. This amount consists of a$59.7 million deferred tax benefit related to the remeasurement of Helix’s net deferred tax liabilities in the U.S. at the new lower corporate income tax rate and an$8.1 million deferred tax expense related to the mandatory tax on previously unremitted earnings of certain foreign subsidiaries. Helix is continuing to analyze the impact of the tax law changes, and the estimated amount may change.
Financial Condition and Liquidity
-
Cash and cash equivalents at
December 31, 2017 were approximately$267 million . Consolidated long-term debt decreased to$496 million atDecember 31, 2017 from$504 million atSeptember 30, 2017 . Consolidated net debt atDecember 31, 2017 was$229 million . Net debt to book capitalization atDecember 31, 2017 was 13%. (Net debt and net debt to book capitalization are non-GAAP measures. See reconciliation below.) -
We incurred capital expenditures (including capitalized interest)
totaling
$95 million in the fourth quarter of 2017 compared to$43 million in the third quarter of 2017 and$37 million in the fourth quarter of 2016. Our capital expenditures in the fourth quarter of 2017 included a$69 million installment payment to the shipyard for the Q7000. In addition, we incurred mobilization costs for the Siem Helix 2 of$15 million in the fourth quarter of 2017 and$14 million in the third quarter of 2017.
Conference Call Information
Further details are provided in the presentation for Helix’s quarterly
conference call to review its fourth quarter 2017 results (see the
“Investor Relations” page of Helix’s website, www.HelixESG.com).
The call, scheduled for
About Helix
Reconciliation of Non-GAAP Financial Measures
Management evaluates Company performance and financial condition using certain non-GAAP metrics, primarily EBITDA, Adjusted EBITDA, net debt and net debt to book capitalization. We define EBITDA as earnings before income taxes, net interest expense, gain or loss on early extinguishment of long-term debt, net other income or expense, and depreciation and amortization expense. Non-cash goodwill impairment charges and non-cash losses on equity investments are also added back if applicable. To arrive at our measure of Adjusted EBITDA, we exclude gain or loss on disposition of assets. In addition, we include realized losses from foreign currency exchange contracts not designated as hedging instruments, which are excluded from EBITDA as a component of net other income or expense. Net debt is calculated as total long-term debt less cash and cash equivalents. Net debt to book capitalization is calculated by dividing net debt by the sum of net debt and shareholders’ equity. We use EBITDA to monitor and facilitate internal evaluation of the performance of our business operations, to facilitate external comparison of our business results to those of others in our industry, to analyze and evaluate financial strategic planning decisions regarding future investments and acquisitions, to plan and evaluate operating budgets, and in certain cases, to report our results to the holders of our debt as required by our debt covenants. We believe that our measure of EBITDA provides useful information to the public regarding our ability to service debt and fund capital expenditures and may help our investors understand our operating performance and compare our results to other companies that have different financing, capital and tax structures. Other companies may calculate their measures of EBITDA and Adjusted EBITDA differently from the way we do, which may limit their usefulness as comparative measures. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for, but instead are supplemental to, income from operations, net income or other income data prepared in accordance with GAAP. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, our reported results prepared in accordance with GAAP. Users of this financial information should consider the types of events and transactions that are excluded from these measures.
Forward-Looking Statements
This press release contains forward-looking statements that involve
risks, uncertainties and assumptions that could cause our results to
differ materially from those expressed or implied by such
forward-looking statements. All statements, other than statements of
historical fact, are "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995, including, without
limitation, any statements regarding our strategy; any statements
regarding visibility and future utilization; any projections of
financial items; any statements regarding future operations
expenditures; any statements regarding the plans, strategies and
objectives of management for future operations; any statements regarding
our ability to enter into and/or perform commercial contracts; any
statements concerning developments; any statements regarding future
economic conditions or performance; any statements of expectation or
belief; and any statements of assumptions underlying any of the
foregoing. The forward-looking statements are subject to a number of
known and unknown risks, uncertainties and other factors including but
not limited to the performance of contracts by suppliers, customers and
partners; actions by governmental and regulatory authorities; operating
hazards and delays, which include delays in delivery, chartering or
customer acceptance of assets or terms of their acceptance; our ultimate
ability to realize current backlog; employee management issues;
complexities of global political and economic developments; geologic
risks; volatility of oil and gas prices and other risks described from
time to time in our reports filed with the
Social Media
From time to time we provide information about Helix on Twitter (@Helix_ESG) and LinkedIn (www.linkedin.com/company/helix-energy-solutions-group/).
HELIX ENERGY SOLUTIONS GROUP, INC. | |||||||||||||||||||||||||
Comparative Condensed Consolidated Statements of Operations | |||||||||||||||||||||||||
Three Months Ended Dec. 31, | Twelve Months Ended Dec. 31, | ||||||||||||||||||||||||
(in thousands, except per share data) | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||
(unaudited) |
(unaudited) | ||||||||||||||||||||||||
Net revenues | $ | 163,266 | $ | 128,031 | $ | 581,383 | $ | 487,582 | |||||||||||||||||
Cost of sales | 139,783 | 110,427 | 519,217 | 441,066 | |||||||||||||||||||||
Gross profit | 23,483 | 17,604 | 62,166 | 46,516 | |||||||||||||||||||||
Goodwill impairment | - | (45,107 | ) | - | (45,107 | ) | |||||||||||||||||||
Gain (loss) on disposition of assets, net | - | 1,290 | (39 | ) | 1,290 | ||||||||||||||||||||
Selling, general and administrative expenses | (16,725 | ) | (18,441 | ) | (63,257 | ) | (65,934 | ) | |||||||||||||||||
Income (loss) from operations | 6,758 | (44,654 | ) | (1,130 | ) | (63,235 | ) | ||||||||||||||||||
Equity in losses of investment | (1,911 | ) | (1,800 | ) | (2,368 | ) | (2,166 | ) | |||||||||||||||||
Net interest expense | (3,298 | ) | (6,232 | ) | (18,778 | ) | (31,239 | ) | |||||||||||||||||
Loss on early extinguishment of long-term debt | - | (4,086 | ) | (397 | ) | (3,540 | ) | ||||||||||||||||||
Other income (expense), net | (815 | ) | (508 | ) | (1,434 | ) | 3,510 | ||||||||||||||||||
Other income - oil and gas | 539 | 255 | 3,735 | 2,755 | |||||||||||||||||||||
Income (loss) before income taxes | 1,273 | (57,025 | ) | (20,372 | ) | (93,915 | ) | ||||||||||||||||||
Income tax benefit | (49,307 | ) | (2,612 | ) | (50,424 | ) | (12,470 | ) | |||||||||||||||||
Net income (loss) | $ | 50,580 | $ | (54,413 | ) | $ | 30,052 | $ | (81,445 | ) | |||||||||||||||
Earnings (loss) per share of common stock: | |||||||||||||||||||||||||
Basic |
$ | 0.34 | $ | (0.46 | ) | $ | 0.20 | $ | (0.73 | ) | |||||||||||||||
Diluted |
$ | 0.34 | $ | (0.46 | ) | $ | 0.20 | $ | (0.73 | ) | |||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||||
Basic | 146,001 | 118,987 | 145,295 | 111,612 | |||||||||||||||||||||
Diluted | 146,081 | 118,987 | 145,300 | 111,612 | |||||||||||||||||||||
Comparative Condensed Consolidated Balance Sheets | |||||||||||||||||||||||||
ASSETS | LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
(in thousands) | Dec. 31, 2017 | Dec. 31, 2016 | (in thousands) | Dec. 31, 2017 | Dec. 31, 2016 | ||||||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||||||
Current Assets: | Current Liabilities: | ||||||||||||||||||||||||
Cash and cash equivalents (1) | $ | 266,592 | $ | 356,647 | Accounts payable | $ | 81,299 | $ | 60,210 | ||||||||||||||||
Accounts receivable, net | 143,283 | 112,153 | Accrued liabilities | 71,680 | 58,614 | ||||||||||||||||||||
Current deferred tax assets (2) | - | 16,594 |
Income tax payable |
2,799 | - | ||||||||||||||||||||
Other current assets | 41,768 | 37,388 | Current maturities of long-term debt (1) | 109,861 | 67,571 | ||||||||||||||||||||
Total Current Assets | 451,643 | 522,782 | Total Current Liabilities | 265,639 | 186,395 | ||||||||||||||||||||
Long-term debt (1) | 385,766 | 558,396 | |||||||||||||||||||||||
Deferred tax liabilities (2) | 103,349 | 167,351 | |||||||||||||||||||||||
Property & equipment, net | 1,805,989 | 1,651,610 | Other non-current liabilities | 40,690 | 52,985 | ||||||||||||||||||||
Other assets, net | 105,205 | 72,549 | Shareholders' equity (1) | 1,567,393 | 1,281,814 | ||||||||||||||||||||
Total Assets | $ | 2,362,837 | $ | 2,246,941 | Total Liabilities & Equity | $ | 2,362,837 | $ | 2,246,941 | ||||||||||||||||
(1) | Net debt to book capitalization - 13% at December 31, 2017. Calculated as net debt (total long-term debt less cash and cash equivalents - $229,035) divided by the sum of net debt and shareholders' equity ($1,796,428). | |
(2) | We elected to prospectively adopt the new FASB guidance with respect to balance sheet classification of deferred taxes in the first quarter of 2017. As a result, deferred tax liabilities as of December 31, 2017 were presented net of current deferred tax assets. |
Helix Energy Solutions Group, Inc. Reconciliation of Non-GAAP Measures |
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Earnings Release: |
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Reconciliation from Net Income (Loss) to Adjusted EBITDA: |
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Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||
12/31/2017 | 12/31/2016 | 9/30/2017 | 12/31/2017 | 12/31/2016 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Net income (loss) | $ | 50,580 | $ | (54,413 | ) | $ | 2,290 | $ | 30,052 | $ | (81,445 | ) | |||||||||||||
Adjustments: | |||||||||||||||||||||||||
Income tax benefit | (49,307 | ) | (2,612 | ) | (1,539 | ) | (50,424 | ) | (12,470 | ) | |||||||||||||||
Net interest expense | 3,298 | 6,232 | 3,615 | 18,778 | 31,239 | ||||||||||||||||||||
Loss on early extinguishment of long-term debt | - | 4,086 | - | 397 | 3,540 | ||||||||||||||||||||
Other (income) expense, net | 815 | 508 | 551 | 1,434 | (3,510 | ) | |||||||||||||||||||
Depreciation and amortization | 26,075 | 29,341 | 26,293 | 108,745 | 114,187 | ||||||||||||||||||||
Goodwill impairment | - | 45,107 | - | - | 45,107 | ||||||||||||||||||||
Non-cash losses on equity investment | 1,800 | 1,674 | - | 1,800 | 1,674 | ||||||||||||||||||||
EBITDA | 33,261 | 29,923 | 31,210 | 110,782 | 98,322 | ||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||
(Gain) loss on disposition of assets, net | - | (1,290 | ) | - | 39 | (1,290 | ) | ||||||||||||||||||
Realized losses from foreign currency exchange contracts not designated as hedging instruments | (846 | ) | (1,744 | ) | (758 | ) | (3,605 | ) | (7,488 | ) | |||||||||||||||
Adjusted EBITDA | $ | 32,415 | $ | 26,889 | $ | 30,452 | $ | 107,216 | $ | 89,544 | |||||||||||||||
We define EBITDA as earnings before income taxes, net interest expense, gain or loss on early extinguishment of long-term debt, net other income or expense, and depreciation and amortization expense. Non-cash goodwill impairment charge and non-cash losses on equity investment are also added back if applicable. To arrive at our measure of Adjusted EBITDA, we exclude gain or loss on disposition of assets. In addition, we include realized losses from foreign currency exchange contracts not designated as hedging instruments, which are excluded from EBITDA as a component of net other income or expense. We use EBITDA to monitor and facilitate internal evaluation of the performance of our business operations, to facilitate external comparison of our business results to those of others in our industry, to analyze and evaluate financial strategic planning decisions regarding future investments and acquisitions, to plan and evaluate operating budgets, and in certain cases, to report our results to the holders of our debt as required by our debt covenants. We believe that our measure of EBITDA provides useful information to the public regarding our ability to service debt and fund capital expenditures and may help our investors understand our operating performance and compare our results to other companies that have different financing, capital and tax structures. Other companies may calculate their measures of EBITDA and Adjusted EBITDA differently from the way we do, which may limit their usefulness as comparative measures. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for, but instead are supplemental to, income from operations, net income or other income data prepared in accordance with GAAP. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, our reported results prepared in accordance with GAAP. Users of this financial information should consider the types of events and transactions that are excluded from these measures.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180219005612/en/
Source:
Helix Energy Solutions Group, Inc.
Erik Staffeldt, 281-618-0400
Senior
Vice President & CFO