Press Releases
1EBITDA is a non-GAAP measure. See reconciliation below.
* * * * *
Summary of Results ($ in thousands, except per share amounts, unaudited) |
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Three Months Ended | Nine Months Ended | ||||||||||||||||||||
9/30/2015 | 9/30/2014 | 6/30/2015 | 9/30/2015 | 9/30/2014 | |||||||||||||||||
Revenues | $ | 182,462 | $ | 340,837 | $ | 166,016 | $ | 538,119 | $ | 899,996 | |||||||||||
Gross Profit | $ | 31,969 | $ | 126,247 | $ | 24,208 | $ | 91,124 | $ | 311,231 | |||||||||||
18 | % | 37 | % | 15 | % | 17 | % | 35 | % | ||||||||||||
Net Income Applicable to
Common Shareholders |
$ | 9,880 | $ | 75,586 | $ | (2,635 | ) | $ | 26,887 | $ | 187,087 | ||||||||||
Diluted Earnings Per Share | $ | 0.09 | $ | 0.71 | $ | (0.03 | ) | $ | 0.25 | $ | 1.77 | ||||||||||
Adjusted EBITDA1 | $ | 51,497 | $ | 137,097 | $ | 35,689 | $ | 138,550 | $ | 338,648 | |||||||||||
1EBITDA is a non-GAAP measure. See reconciliation below |
Segment Information, Operational and Financial Highlights ($ in thousands, unaudited) |
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Three Months Ended | |||||||||||||
9/30/2015 | 9/30/2014 | 6/30/2015 | |||||||||||
Revenues: | |||||||||||||
Well Intervention | $ | 94,895 | $ | 205,139 | $ | 85,675 | |||||||
Robotics | 83,310 | 131,707 | 75,101 | ||||||||||
Production Facilities | 19,133 | 24,184 | 20,293 | ||||||||||
Intercompany Eliminations | (14,876 | ) | (20,193 | ) | (15,053 | ) | |||||||
Total | $ | 182,462 | $ | 340,837 | $ | 166,016 | |||||||
Income from Operations: | |||||||||||||
Well Intervention | $ | 6,233 | $ | 80,789 | $ | 4,135 | |||||||
Robotics | 14,329 | 28,397 | 4,303 | ||||||||||
Production Facilities | 6,938 | 11,284 | 8,444 | ||||||||||
Corporate / Other | (8,965 | ) | (14,242 | ) | (9,009 | ) | |||||||
Intercompany Eliminations | (163 | ) | 103 | (199 | ) | ||||||||
Total | $ | 18,372 | $ | 106,331 | $ | 7,674 |
Business Segment Results
-
Well Intervention revenues increased 11% in the third quarter of 2015
as compared to revenues in the second quarter of 2015, reflecting a
greater number of utilized days in the quarter for two of our
North Sea vessels. Well Intervention vessel utilization in the third quarter of 2015 decreased to 60% from 63% in the second quarter of 2015. The Gulf ofMexico fleet utilization was 34% in the third quarter of 2015 compared to 42% in second quarter of 2015. The Helix 534 was idle the entire quarter due to low levels of activity. The vessel entered dry dock in September. In theNorth Sea , vessel utilization decreased to 82% in the third quarter of 2015 compared to 84% in the second quarter of 2015. The Seawell completed its life extension capital upgrade and is currently warm stacked due to low levels of activity. The Well Enhancer and Skandi Constructor combined for 96% utilization in the third quarter of 2015, working on various projects in theNorth Sea . The rental intervention riser systems continue to positively contribute to revenues, with both units on hire the entire third quarter of 2015. - Robotics revenues increased 11% in the third quarter of 2015 from revenues in the second quarter of 2015. Vessel utilization increased to 87% and ROV asset utilization was marginally lower, quarter over quarter. The increase in vessel utilized days was the primary driver in higher revenue and gross profit for the quarter.
Other Expenses
-
Selling, general and administrative expenses were 7.5% of revenue in
the third quarter of 2015 compared to 10.0% of revenue in the second
quarter of 2015. Our second quarter 2015 expense included
$2.5 million of charges associated with the provision for uncertain collection of a portion of an existing trade receivable. -
Net interest expense and other decreased to
$8.7 million in the third quarter of 2015 from$10.3 million in the second quarter of 2015. Net interest expense increased to$8.7 million in the third quarter of 2015, reflecting the Q5000 loan being outstanding for the full quarter. Our second quarter 2015 other expense included$5.0 million of charges primarily associated with foreign exchange fluctuations in our non-U.S. dollar functional currencies.
Financial Condition and Liquidity
-
Our total liquidity at
September 30, 2015 was approximately$712 million , consisting of$469 million in cash and cash equivalents and$243 million in available capacity under our revolver. Consolidated net debt atSeptember 30, 2015 was$307 million . Consolidated gross funded debt decreased to$793 million in the third quarter of 2015, compared to$812 million in the second quarter of 2015. Net debt to book capitalization atSeptember 30, 2015 was 16%. (Net debt to book capitalization is a non-GAAP measure. See reconciliation below.) -
We incurred capital expenditures (including capitalized interest)
totaling
$55 million in the third quarter of 2015 compared to$197 million in the second quarter of 2015 and$68 million in the third quarter of 2014.
* * * * *
Conference Call Information
Further details are provided in the presentation for Helix’s quarterly
conference call to review its third quarter 2015 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 calculate EBITDA as earnings before net interest expense and other, income taxes, depreciation and amortization expense. We deduct the noncontrolling interests related to the adjustment components of EBITDA and the gain or loss on disposition of assets to arrive at our measure of Adjusted EBITDA. 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 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. EBITDA and 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 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 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
Social Media
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 |
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Three Months Ended Sep. 30, | Nine Months Ended Sep. 30, | ||||||||||||||||||||||||||
(in thousands, except per share data) | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||||||||
Net revenues | $ | 182,462 | $ | 340,837 | $ | 538,119 | $ | 899,996 | |||||||||||||||||||
Cost of sales | 150,493 | 214,590 | 446,995 | 588,765 | |||||||||||||||||||||||
Gross profit | 31,969 | 126,247 | 91,124 | 311,231 | |||||||||||||||||||||||
Gain on disposition of assets, net | - | - | - | 10,418 | |||||||||||||||||||||||
Selling, general and administrative expenses | (13,597 | ) | (19,916 | ) | (42,750 | ) | (69,614 | ) | |||||||||||||||||||
Income from operations | 18,372 | 106,331 | 48,374 | 252,035 | |||||||||||||||||||||||
Equity in earnings (losses) of investments | (251 | ) | 508 | (553 | ) | 709 | |||||||||||||||||||||
Other income - oil and gas | 571 | 1,837 | 4,396 | 15,709 | |||||||||||||||||||||||
Net interest expense and other | (8,718 | ) | (3,258 | ) | (24,215 | ) | (13,085 | ) | |||||||||||||||||||
Income before income taxes | 9,974 | 105,418 | 28,002 | 255,368 | |||||||||||||||||||||||
Income tax provision | 94 | 29,832 | 1,115 | 67,778 | |||||||||||||||||||||||
Net income, including noncontrolling interests | 9,880 | 75,586 | 26,887 | 187,590 | |||||||||||||||||||||||
Less net income applicable to noncontrolling interests | - | - | - | (503 | ) | ||||||||||||||||||||||
Net income applicable to common shareholders | $ | 9,880 | $ | 75,586 | $ | 26,887 | $ | 187,087 | |||||||||||||||||||
Earnings per share of common stock: | |||||||||||||||||||||||||||
Basic |
$ | 0.09 | $ | 0.72 | $ | 0.25 | $ | 1.77 | |||||||||||||||||||
Diluted |
$ | 0.09 | $ | 0.71 | $ | 0.25 | $ | 1.77 | |||||||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||||||
Basic | 105,438 | 104,997 | 105,362 | 105,038 | |||||||||||||||||||||||
Diluted | 105,438 | 105,338 | 105,362 | 105,374 |
Comparative Condensed Consolidated Balance Sheet |
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ASSETS | LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||||||||||||||
(in thousands) | Sep. 30, 2015 | Dec. 31, 2014 | (in thousands) | Sep. 30, 2015 | Dec. 31, 2014 | ||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||
Current Assets: | Current Liabilities: | ||||||||||||||||||||
Cash and equivalents (1) | $ | 468,936 | $ | 476,492 | Accounts payable | $ | 75,781 | $ | 83,403 | ||||||||||||
Accounts receivable, net | 146,929 | 135,300 | Accrued liabilities | 78,718 | 104,923 | ||||||||||||||||
Current deferred tax assets | 36,059 | 31,180 | Income tax payable | - | 9,143 | ||||||||||||||||
Other current assets | 44,500 | 51,301 | Current maturities of L-T debt (1) | 71,640 | 28,144 | ||||||||||||||||
Total Current Assets | 696,424 | 694,273 | Total Current Liabilities | 226,139 | 225,613 | ||||||||||||||||
Property & equipment, net | 1,934,323 | 1,735,384 | Long-term debt (1) | 704,568 | 523,228 | ||||||||||||||||
Equity investments | 143,481 | 149,623 | Deferred tax liabilities | 257,596 | 260,275 | ||||||||||||||||
Goodwill | 61,648 | 62,146 | Other non-current liabilities | 46,412 | 38,108 | ||||||||||||||||
Other assets, net | 72,124 | 59,272 | Shareholders' equity (1) | 1,673,285 | 1,653,474 | ||||||||||||||||
Total Assets | $ | 2,908,000 | $ | 2,700,698 | Total Liabilities & Equity | $ | 2,908,000 | $ | 2,700,698 | ||||||||||||
(1) Net debt to book capitalization - 16% at September 30,
2015. Calculated as total debt less cash and equivalents ($307,272) |
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Helix Energy Solutions Group, Inc. | ||||||||||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||||||||||
Earnings Release: | ||||||||||||||||||||
Reconciliation From Net Income (Loss) Applicable to Common Shareholders to Adjusted EBITDA: | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
9/30/2015 | 9/30/2014 | 6/30/2015 | 9/30/2015 | 9/30/2014 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Net income (loss) applicable to common shareholders | $ | 9,880 | $ | 75,586 | $ | (2,635 | ) | $ | 26,887 | $ | 187,087 | |||||||||
Adjustments: | ||||||||||||||||||||
Net income applicable to noncontrolling interests | - | - | - | - | 503 | |||||||||||||||
Income tax provision | 94 | 29,832 | 614 | 1,115 | 67,778 | |||||||||||||||
Net interest expense and other | 8,718 | 3,258 | 10,271 | 24,215 | 13,085 | |||||||||||||||
Depreciation and amortization | 32,805 | 28,421 | 27,439 | 86,333 | 81,274 | |||||||||||||||
EBITDA | 51,497 | 137,097 | 35,689 | 138,550 | 349,727 | |||||||||||||||
Adjustments: | ||||||||||||||||||||
Noncontrolling interests | - | - | - | - | (661 | ) | ||||||||||||||
Gain on disposition of assets, net | - | - | - | - | (10,418 | ) | ||||||||||||||
Adjusted EBITDA | $ | 51,497 | $ | 137,097 | $ | 35,689 | $ | 138,550 | $ | 338,648 | ||||||||||
We define EBITDA as earnings before net interest expense and other, income taxes, and depreciation and amortization expense. | ||||||||||||||||||||
We deduct the noncontrolling interests related to the adjustment components of EBITDA and the gain or loss on disposition of assets | ||||||||||||||||||||
to arrive at our measure of Adjusted EBITDA. 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. 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/20151019006687/en/
Source:
Helix Energy Solutions Group, Inc.
Erik Staffeldt, 281-618-0400
Vice
President - Finance & Accounting