Press Releases
Summary of Results ($ in thousands, except per share amounts, unaudited) |
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Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
9/30/2017 | 9/30/2016 | 6/30/2017 | 9/30/2017 | 9/30/2016 | |||||||||||||||||||||||
Revenues | $ | 163,260 | $ | 161,245 | $ | 150,329 | $ | 418,117 | $ | 359,551 | |||||||||||||||||
Gross Profit | $ | 21,141 | $ | 40,184 | $ | 18,367 | $ | 38,683 | $ | 28,912 | |||||||||||||||||
13 | % | 25 | % | 12 | % | 9 | % | 8 | % | ||||||||||||||||||
Net Income (Loss) | $ | 2,290 | $ | 11,462 | $ | (6,403 | ) | $ | (20,528 | ) | $ | (27,032 | ) | ||||||||||||||
Diluted Earnings (Loss) Per Share | $ | 0.02 | $ | 0.10 | $ | (0.04 | ) | $ | (0.14 | ) | $ | (0.25 | ) | ||||||||||||||
Adjusted EBITDA1 | $ | 30,452 | $ | 46,701 | $ | 29,727 | $ | 74,801 | $ | 62,655 | |||||||||||||||||
1Adjusted 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 | |||||||||||||||||
9/30/2017 | 9/30/2016 | 6/30/2017 | |||||||||||||||
Revenues: | |||||||||||||||||
Well Intervention | $ | 111,522 | $ | 108,287 | $ | 113,076 | |||||||||||
Robotics | 47,049 | 48,897 | 33,061 | ||||||||||||||
Production Facilities | 16,380 | 17,128 | 15,210 | ||||||||||||||
Intercompany Eliminations | (11,691 | ) | (13,067 | ) | (11,018 | ) | |||||||||||
Total | $ | 163,260 | $ | 161,245 | $ | 150,329 | |||||||||||
Income (Loss) from Operations: | |||||||||||||||||
Well Intervention | $ | 16,906 | $ | 24,413 | $ | 19,032 | |||||||||||
Robotics | (9,365 | ) | (94 | ) | (11,642 | ) | |||||||||||
Production Facilities | 7,660 | 8,312 | 6,140 | ||||||||||||||
Corporate / Other | (10,633 | ) | (10,288 | ) | (8,701 | ) | |||||||||||
Intercompany Eliminations | 199 | (873 | ) | 221 | |||||||||||||
Total | $ | 4,767 | $ | 21,470 | $ | 5,050 | |||||||||||
Business Segment Results
-
Well Intervention revenues decreased
$1.6 million , or 1%, in the third quarter of 2017 from the second quarter of 2017 primarily due to lower day rates in the Gulf ofMexico , offset in part by a full quarter of revenue inBrazil at higher rates than the second quarter. Overall Well Intervention vessel utilization decreased slightly to 88% in the third quarter of 2017 from 90% in the second quarter of 2017. In theNorth Sea , vessel utilization in the third quarter of 2017 decreased to 90% from 100% in the second quarter of 2017. The Well Enhancer utilization decreased to 84% in the third quarter of 2017 from 100% in the second quarter of 2017 primarily due to mechanical downtime. The Seawell utilization decreased to 97% in the third quarter of 2017 from 100% in the second quarter of 2017. Vessel utilization in the Gulf ofMexico increased to 80% from 77% in the second quarter of 2017. The Q4000 utilization increased to 86% in the third quarter of 2017 from 63% in the second quarter of 2017. The increase is attributable to 34 days of drydock in the second quarter of 2017, but was partially offset by idle time during the third quarter of 2017. The Q5000 utilization decreased to 75% in the third quarter of 2017 from 91% in the second quarter of 2017 due to idle days between projects during the third quarter of 2017. The Siem Helix 1 was utilized 96% in the third quarter of 2017 compared to 95% in the second quarter of 2017. The rental intervention riser system was idle during the third quarter of 2017. - Robotics revenues increased 42% in the third quarter of 2017 from the second quarter of 2017 primarily attributable to increased vessel days from our four chartered vessels as well as 34 additional spot vessel days quarter over quarter. Chartered vessel utilization increased to 80% in the third quarter of 2017 from 57% in the second quarter of 2017, and ROV asset utilization increased to 46% in the third quarter of 2017 from 42% in the second quarter of 2017.
- Production Facilities revenues increased 8% in the third quarter of 2017 from the second quarter of 2017, primarily reflecting the HFRS at full rates during the third quarter of 2017 compared to reduced rates in the second quarter of 2017 as a result of the Q4000 dry-dock.
Other Expenses
-
Selling, general and administrative expenses were
$16.4 million , 10.0% of revenue, in the third quarter of 2017 compared to$13.3 million , 8.9% of revenue, in the second quarter of 2017. The increase was primarily attributable to increased costs associated with our share-based compensation plans. -
Net interest expense decreased to
$3.6 million in the third quarter of 2017 from$6.6 million in the second quarter of 2017. In the second quarter of 2017, we recorded a$1.6 million charge to accelerate a pro-rata portion of the debt issuance costs associated with the amendment and restatement of our revolving credit facility. The remaining decrease was primarily attributable to reduced debt levels. -
Other expense was
$0.5 million in the third quarter of 2017 compared to other income of$0.5 million in the second quarter of 2017. The change was primarily driven by foreign currency transaction losses partially offset by gains from our foreign currency exchange contracts that are not designated as hedges.
Financial Condition and Liquidity
-
Cash and cash equivalents at
September 30, 2017 was approximately$357 million . Consolidated long-term debt decreased to$504 million atSeptember 30, 2017 from$515 million atJune 30, 2017 . Consolidated net debt atSeptember 30, 2017 was$147 million . Net debt to book capitalization atSeptember 30, 2017 was 9%. (Net debt and net debt to book capitalization are non-GAAP measures. See reconciliation below.)
-
We incurred capital expenditures (including capitalized interest)
totaling
$43 million in the third quarter of 2017 compared to$47 million in the second quarter of 2017 and$99 million in the third quarter of 2016. In addition, we incurred mobilization costs for the Siem Helix 2 of$14 million in the third quarter of 2017 and$10 million in the second quarter of 2017.
Conference Call Information
Further details are provided in the presentation for Helix’s quarterly
conference call to review its third 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. To arrive at our measure of Adjusted EBITDA, we exclude gain or loss on disposition of assets. In addition, we include realized losses from the cash settlements of our ineffective foreign currency exchange contracts, 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
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 LinkedIn (www.linkedin.com/company/helix-energy-solutions-group).
HELIX ENERGY SOLUTIONS GROUP, INC. | ||||||||||||||||||||||||
Comparative Condensed Consolidated Statements of Operations | ||||||||||||||||||||||||
Three Months Ended Sep. 30, |
Nine Months Ended Sep. 30, |
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(in thousands, except per share data) | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||
Net revenues | $ | 163,260 | $ | 161,245 | $ | 418,117 | $ | 359,551 | ||||||||||||||||
Cost of sales | 142,119 | 121,061 | 379,434 | 330,639 | ||||||||||||||||||||
Gross profit | 21,141 | 40,184 | 38,683 | 28,912 | ||||||||||||||||||||
Loss on disposition of assets, net | - | - | (39 | ) | - | |||||||||||||||||||
Selling, general and administrative expenses | (16,374 | ) | (18,714 | ) | (46,532 | ) | (47,493 | ) | ||||||||||||||||
Income (loss) from operations | 4,767 | 21,470 | (7,888 | ) | (18,581 | ) | ||||||||||||||||||
Equity in losses of investment | (153 | ) | (122 | ) | (457 | ) | (366 | ) | ||||||||||||||||
Net interest expense | (3,615 | ) | (6,843 | ) | (15,480 | ) | (25,007 | ) | ||||||||||||||||
Gain (loss) on early extinguishment of long-term debt | - | 244 | (397 | ) | 546 | |||||||||||||||||||
Other income (expense), net | (551 | ) | 830 | (619 | ) | 4,018 | ||||||||||||||||||
Other income (expense) - oil and gas | 303 | (468 | ) | 3,196 | 2,500 | |||||||||||||||||||
Income (loss) before income taxes | 751 | 15,111 | (21,645 | ) | (36,890 | ) | ||||||||||||||||||
Income tax provision (benefit) | (1,539 | ) | 3,649 | (1,117 | ) | (9,858 | ) | |||||||||||||||||
Net income (loss) | $ | 2,290 | $ | 11,462 | $ | (20,528 | ) | $ | (27,032 | ) | ||||||||||||||
Earnings (loss) per share of common stock: | ||||||||||||||||||||||||
Basic |
$ | 0.02 | $ | 0.10 | $ | (0.14 | ) | $ | (0.25 | ) | ||||||||||||||
Diluted |
$ | 0.02 | $ | 0.10 | $ | (0.14 | ) | $ | (0.25 | ) | ||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||||||||
Basic | 145,958 | 113,680 | 145,057 | 109,135 | ||||||||||||||||||||
Diluted | 145,958 | 113,680 | 145,057 | 109,135 | ||||||||||||||||||||
Comparative Condensed Consolidated Balance Sheets | |||||||||||||||||||||||||
ASSETS | LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
(in thousands) | Sep. 30, 2017 | Dec. 31, 2016 | (in thousands) | Sep. 30, 2017 | Dec. 31, 2016 | ||||||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||||||||
Current Assets: | Current Liabilities: | ||||||||||||||||||||||||
Cash and cash equivalents (1) | $ | 356,889 | $ | 356,647 | Accounts payable | $ | 91,412 | $ | 60,210 | ||||||||||||||||
Accounts receivable, net | 136,296 | 112,153 | Accrued liabilities | 60,761 | 58,614 | ||||||||||||||||||||
Current deferred tax assets (2) | - | 16,594 | Income tax payable | 1,756 | - | ||||||||||||||||||||
Other current assets | 38,172 | 37,388 | Current maturities of long-term debt (1) | 108,611 | 67,571 | ||||||||||||||||||||
Total Current Assets | 531,357 | 522,782 | Total Current Liabilities | 262,540 | 186,395 | ||||||||||||||||||||
Long-term debt (1) | 395,345 | 558,396 | |||||||||||||||||||||||
Deferred tax liabilities (2) | 154,158 | 167,351 | |||||||||||||||||||||||
Property & equipment, net | 1,734,159 | 1,651,610 | Other non-current liabilities | 42,736 | 52,985 | ||||||||||||||||||||
Other assets, net | 100,974 | 72,549 | Shareholders' equity (1) | 1,511,711 | 1,281,814 | ||||||||||||||||||||
Total Assets | $ | 2,366,490 | $ | 2,246,941 | Total Liabilities & Equity | $ | 2,366,490 | $ | 2,246,941 | ||||||||||||||||
|
(1) | Net debt to book capitalization - 9% at September 30, 2017. Calculated as net debt (total long-term debt less cash and cash equivalents - $147,067) divided by the sum of net debt and shareholders' equity ($1,658,778). | |
(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 September 30, 2017 were presented net of current deferred tax assets. | |
Helix Energy Solutions Group, Inc. | ||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||||||||||||||||||
Earnings Release: |
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Reconciliation from Net Income (Loss) to Adjusted EBITDA: |
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Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
9/30/2017 | 9/30/2016 | 6/30/2017 | 9/30/2017 | 9/30/2016 | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Net income (loss) | $ | 2,290 | $ | 11,462 | $ | (6,403 | ) | $ | (20,528 | ) | $ | (27,032 | ) | |||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Income tax provision (benefit) | (1,539 | ) | 3,649 | 5,023 | (1,117 | ) | (9,858 | ) | ||||||||||||||||||||
Net interest expense | 3,615 | 6,843 | 6,639 | 15,480 | 25,007 | |||||||||||||||||||||||
(Gain) loss on early extinguishment of long-term debt | - | (244 | ) | 397 | 397 | (546 | ) | |||||||||||||||||||||
Other (income) expense, net | 551 | (830 | ) | (467 | ) | 619 | (4,018 | ) | ||||||||||||||||||||
Depreciation and amortization | 26,293 | 27,607 | 25,519 | 82,670 | 84,846 | |||||||||||||||||||||||
EBITDA | 31,210 | 48,487 | 30,708 | 77,521 | 68,399 | |||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Loss on disposition of assets, net | - | - | - | 39 | - | |||||||||||||||||||||||
Realized losses from cash settlements of ineffective foreign currency exchange contracts |
(758 | ) | (1,786 | ) | (981 | ) | (2,759 | ) | (5,744 | ) | ||||||||||||||||||
Adjusted EBITDA | $ | 30,452 | $ | 46,701 | $ | 29,727 | $ | 74,801 | $ | 62,655 | ||||||||||||||||||
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. To arrive at our measure of Adjusted EBITDA, we exclude gain or loss on disposition of assets. In addition, we include realized losses from the cash settlements of our ineffective foreign currency exchange contracts, 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/20171022005035/en/
Source:
Helix Energy Solutions Group, Inc.
Erik Staffeldt,281-618-0400
Senior
Vice President & CFO