Press Releases
Summary of Results |
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(in thousands, except per share amounts and percentages, unaudited) | ||||||||||||||||||||||||||||
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Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
9/30/2014 | 9/30/2013 | 6/30/2014 | 9/30/2014 | 9/30/2013 | ||||||||||||||||||||||||
Revenues | $ | 340,837 | $ | 220,117 | $ | 305,587 | $ | 899,996 | $ | 649,724 | ||||||||||||||||||
Gross Profit | $ | 126,247 | $ | 69,457 | $ | 109,138 | $ | 311,231 | $ | 189,521 | ||||||||||||||||||
37 | % | 32 | % | 36 | % | 35 | % | 29 | % | |||||||||||||||||||
Net Income Applicable to
Common Shareholders |
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Income from continuing operations | $ | 75,586 | $ | 44,549 | $ | 57,782 | $ | 187,087 | $ | 72,346 | ||||||||||||||||||
Income from discontinued operations | - | 44 | - | - | 1,073 | |||||||||||||||||||||||
Total | $ | 75,586 | $ | 44,593 | $ | 57,782 | $ | 187,087 | $ | 73,419 | ||||||||||||||||||
Diluted Earnings Per Share | ||||||||||||||||||||||||||||
Income from continuing operations | $ | 0.71 | $ | 0.42 | $ | 0.55 | $ | 1.77 | $ | 0.68 | ||||||||||||||||||
Income from discontinued operations | - | - | - | - | 0.01 | |||||||||||||||||||||||
Total | $ | 0.71 | $ | 0.42 | $ | 0.55 | $ | 1.77 | $ | 0.69 | ||||||||||||||||||
Adjusted EBITDA from continuing operations | $ | 137,097 | $ | 70,198 | $ | 109,050 | $ | 338,648 | $ | 186,762 | ||||||||||||||||||
Segment Information, Operational and Financial Highlights |
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(in thousands, unaudited) | ||||||||||||||||
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Three Months Ended | ||||||||||||||||
9/30/2014 | 9/30/2013 | 6/30/2014 | ||||||||||||||
Revenues: | ||||||||||||||||
Well Intervention | $ | 205,139 | $ | 114,238 | $ | 181,218 | ||||||||||
Robotics | 131,707 | 90,370 | 119,704 | |||||||||||||
Subsea Construction | - | 4,120 | - | |||||||||||||
Production Facilities | 24,184 | 24,366 | 24,049 | |||||||||||||
Intercompany Eliminations | (20,193 | ) | (12,977 | ) | (19,384 | ) | ||||||||||
Total |
$ | 340,837 | $ | 220,117 | $ | 305,587 | ||||||||||
Income from Operations: | ||||||||||||||||
Well Intervention | $ | 80,789 | $ | 33,544 | $ | 64,775 | ||||||||||
Robotics | 28,397 | 16,166 | 21,877 | |||||||||||||
Subsea Construction | 41 | (498 | ) | 145 | ||||||||||||
Production Facilities | 11,284 | 14,136 | 10,459 | |||||||||||||
Gain (Loss) on Disposition of Assets | - | 15,812 | (1,078 | ) | ||||||||||||
Corporate / Other | (14,283 | ) | (16,522 | ) | (17,467 | ) | ||||||||||
Intercompany Eliminations | 103 | 21 | 45 | |||||||||||||
Total | $ | 106,331 | $ | 62,659 | $ | 78,756 | ||||||||||
Business Segment Results
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Well Intervention revenues increased 13% in the third quarter of 2014
from revenues in the second quarter of 2014, primarily due to the
successful well intervention project completed in Canadian waters with
the Skandi Constructor. Overall, our
North Sea well intervention fleet utilization was 99% in the third quarter of 2014 compared to 100% in the second quarter of 2014. Vessel utilization for the Q4000 in the Gulf ofMexico was slightly down – 89% utilization in the third quarter of 2014 compared to 90% in the second quarter of 2014 – due to thruster repairs. The H534 was at 100% utilization for the second consecutive quarter. The spare rental intervention riser system (IRS no. 2) was on-hire for the entire third quarter of 2014, with 16 more days at operating rates than the second quarter of 2014. - Robotics revenues increased 10% in the third quarter of 2014 from revenues in the second quarter of 2014. Overall vessel and asset utilization remained flat, quarter over quarter; the increase in spot vessel days was the primary driver in higher revenue and gross profit for the quarter. Spot vessel utilization for the third quarter increased by 36 days (197 days total) over the second quarter of 2014.
Other Expenses
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Selling, general and administrative expenses were 5.8% of revenue in
the third quarter of 2014, 9.6% of revenue in the second quarter of
2014 and 10.3% in the third quarter of 2013. Our second quarter 2014
expense included
$5.2 million of charges associated with the provision for uncertain collection of a portion of our existing trade receivables related to our Robotics segment. -
Net interest expense and other decreased to
$3.3 million in the third quarter of 2014 from$4.5 million in the second quarter of 2014. Net interest expense decreased by$0.7 million , while there was a$0.6 million gain in other expense in the third quarter of 2014. Other expense reflects foreign exchange fluctuations in our non-U.S. dollar functional currencies.
Financial Condition and Liquidity
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Our total liquidity at
September 30, 2014 was approximately$1.1 billion , consisting of$547 million in cash and cash equivalents and$583 million in unused capacity under our revolver. Consolidated net debt atSeptember 30, 2014 was$7 million . Net debt to book capitalization atSeptember 30, 2014 was less than 1%. (Net debt to book capitalization is a non-GAAP measure. See reconciliation below.) -
We incurred capital expenditures (including capitalized interest)
totaling
$68 million in the third quarter of 2014, compared to$105 million in the second quarter of 2014 and$176 million in the third quarter of 2013.
Conference Call Information
Further details are provided in the presentation for Helix’s quarterly
conference call to review its third quarter 2014 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 Adjusted EBITDA from continuing operations, net debt and net debt to book capitalization. We calculate Adjusted EBITDA from continuing operations as earnings before net interest expense and other, taxes, depreciation and amortization. Net debt is calculated as the sum of financial debt less cash and cash equivalents on hand. Net debt to book capitalization is calculated by dividing net debt by the sum of net debt, convertible preferred stock and shareholders’ equity. These non-GAAP measures are useful to investors and other internal and external users of our financial statements in evaluating our operating performance because they are widely used by investors in our industry to measure a company’s operating performance without regard to items which can vary substantially from company to company, and help investors meaningfully compare our results from period to period. Adjusted EBITDA should not be considered in isolation or as a substitute for, but instead is 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 which are excluded.
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 future utilization; any projections of financial items; future
operations expenditures; any statements regarding the plans, strategies
and objectives of management for future operations; any statement
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; 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
From time to time we provide information about Helix on Twitter (@Helix_ESG)
and
HELIX ENERGY SOLUTIONS GROUP, INC. | |||||||||||||||||||||||
Comparative Condensed Consolidated Statements of Operations | |||||||||||||||||||||||
Three Months Ended Sep. 30, | Nine Months Ended Sep. 30, | ||||||||||||||||||||||
(in thousands, except per share data) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||||
Net revenues | $ | 340,837 | $ | 220,117 | $ | 899,996 | $ | 649,724 | |||||||||||||||
Cost of sales | 214,590 | 150,660 | 588,765 | 460,203 | |||||||||||||||||||
Gross profit | 126,247 | 69,457 | 311,231 | 189,521 | |||||||||||||||||||
Loss on commodity derivative contracts | - | - | - | (14,113 | ) | ||||||||||||||||||
Gain on disposition of assets, net | - | 15,812 | 10,418 | 14,727 | |||||||||||||||||||
Selling, general and administrative expenses | (19,916 | ) | (22,610 | ) | (69,614 | ) | (65,041 | ) | |||||||||||||||
Income from operations | 106,331 | 62,659 | 252,035 | 125,094 | |||||||||||||||||||
Equity in earnings of investments | 508 | 857 | 709 | 2,150 | |||||||||||||||||||
Other income - oil and gas | 1,837 | 1,681 | 15,709 | 5,781 | |||||||||||||||||||
Net interest expense and other | (3,258 | ) | (12,791 | ) | (13,085 | ) | (42,236 | ) | |||||||||||||||
Income before income taxes | 105,418 | 52,406 | 255,368 | 90,789 | |||||||||||||||||||
Income tax provision | 29,832 | 7,058 | 67,778 | 16,078 | |||||||||||||||||||
Net income from continuing operations | 75,586 | 45,348 | 187,590 | 74,711 | |||||||||||||||||||
Income from discontinued operations, net of tax | - | 44 | - | 1,073 | |||||||||||||||||||
Net income, including noncontrolling interests | 75,586 | 45,392 | 187,590 | 75,784 | |||||||||||||||||||
Less net income applicable to noncontrolling interests | - | (799 | ) | (503 | ) | (2,365 | ) | ||||||||||||||||
Net income applicable to Helix | $ | 75,586 | $ | 44,593 | $ | 187,087 | $ | 73,419 | |||||||||||||||
Weighted Avg. Common Shares Outstanding: | |||||||||||||||||||||||
Basic | 104,997 | 105,029 | 105,038 | 105,036 | |||||||||||||||||||
Diluted | 105,338 | 105,136 | 105,374 | 105,152 | |||||||||||||||||||
Basic earnings per share of common stock: | |||||||||||||||||||||||
Continuing operations | $ | 0.72 | $ | 0.42 | $ | 1.77 | $ | 0.68 | |||||||||||||||
Discontinued operations | - | - | - | 0.01 | |||||||||||||||||||
Net income per share of common stock | $ | 0.72 | $ | 0.42 | $ | 1.77 | $ | 0.69 | |||||||||||||||
Diluted earnings per share of common stock: | |||||||||||||||||||||||
Continuing operations | $ | 0.71 | $ | 0.42 | $ | 1.77 | $ | 0.68 | |||||||||||||||
Discontinued operations | - | - | - | 0.01 | |||||||||||||||||||
Net income per share of common stock | $ | 0.71 | $ | 0.42 | $ | 1.77 | $ | 0.69 |
Comparative Condensed Consolidated Balance Sheets | ||||||||||||||||||||||||||
ASSETS | LIABILITIES & SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||
(in thousands) | Sep. 30, 2014 | Dec. 31, 2013 | (in thousands) | Sep. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||
Current Assets: | Current Liabilities: | |||||||||||||||||||||||||
Cash and equivalents (1) | $ | 546,529 | $ | 478,200 | Accounts payable | $ | 117,280 | $ | 72,602 | |||||||||||||||||
Accounts receivable, net | 208,195 | 184,165 | Accrued liabilities | 85,969 | 96,482 | |||||||||||||||||||||
Current deferred tax assets | 26,342 | 51,573 | Income tax payable | 25,588 | 760 | |||||||||||||||||||||
Other current assets | 48,006 | 29,709 | Current maturities of L-T debt (1) | 24,394 | 20,376 | |||||||||||||||||||||
Total Current Assets | 829,072 | 743,647 | Total Current Liabilities | 253,231 | 190,220 | |||||||||||||||||||||
Property & equipment, net | 1,640,187 | 1,532,217 | Long-term debt (1) | 529,281 | 545,776 | |||||||||||||||||||||
Equity investments | 152,588 | 157,919 | Deferred tax liabilities | 267,409 | 265,879 | |||||||||||||||||||||
Goodwill | 62,839 | 63,230 | Other non-current liabilities | 17,592 | 18,295 | |||||||||||||||||||||
Other assets, net | 60,270 | 47,267 | Shareholders' equity (1) | 1,677,443 | 1,524,110 | |||||||||||||||||||||
Total Assets | $ | 2,744,956 | $ | 2,544,280 | Total Liabilities & Equity | $ | 2,744,956 | $ | 2,544,280 | |||||||||||||||||
(1) Net debt to book capitalization - 0.4% at September 30, 2014. Calculated as total debt less cash and equivalents ($7,146) | ||||||||||||||||||||||||||
divided by sum of total net debt and shareholders' equity ($1,684,589). |
Helix Energy Solutions Group, Inc. | ||||||||||||||||||||||||||||
Reconciliation of Non GAAP Measures | ||||||||||||||||||||||||||||
Three and Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||||||
Earnings Release: |
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Reconciliation From Net Income from Continuing Operations to Adjusted EBITDA: | ||||||||||||||||||||||||||||
Nine Months | ||||||||||||||||||||||||||||
3Q14 | 3Q13 | 2Q14 | 2014 | 2013 | ||||||||||||||||||||||||
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(in thousands) |
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Net income from continuing operations | $ | 75,586 | $ | 45,348 | $ | 57,782 | $ | 187,590 | $ | 74,711 | ||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Income tax provision | 29,832 | 7,058 | 17,529 | 67,778 | 16,078 | |||||||||||||||||||||||
Net interest expense and other | 3,258 | 12,791 | 4,534 | 13,085 | 42,236 | |||||||||||||||||||||||
Depreciation and amortization | 28,421 | 21,850 | 28,127 | 81,274 | 71,542 | |||||||||||||||||||||||
EBITDA from continuing operations | 137,097 | 87,047 | 107,972 | 349,727 | 204,567 | |||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Noncontrolling interests | - | (1,037 | ) | - | (661 | ) | (3,078 | ) | ||||||||||||||||||||
(Gain) loss on disposition of assets, net | - | (15,812 | ) | 1,078 | (10,418 | ) | (14,727 | ) | ||||||||||||||||||||
Adjusted EBITDA from continuing operations | $ | 137,097 | $ | 70,198 | $ | 109,050 | $ | 338,648 | $ | 186,762 |
We calculate adjusted EBITDA from continuing operations as earnings before net interest expense and other, taxes and depreciation and amortization. This non-GAAP measure is useful to investors and other internal and external users of our financial statements in evaluating our operating performance because it is widely used by investors in our industry to measure a company's operating performance without regard to items which can vary substantially from company to company and help investors meaningfully compare our results from period to period. Adjusted EBITDA should not be considered in isolation or as a substitute for, but instead is 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 which are excluded. |
Source:
Helix Energy Solutions Group, Inc.
Terrence Jamerson, 281-618-0400
Director,
Finance & Investor Relations