Press Releases
Helix reported Adjusted EBITDA1 of
Summary of Results |
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($ in thousands, except per share amounts, unaudited) |
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Three Months Ended | Nine Months Ended | |||||||||||||||||||
9/30/2018 | 9/30/2017 |
6/30/2018 |
9/30/2018 |
9/30/2017 |
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Revenues | $ | 212,575 | $ | 163,260 | $ | 204,625 | $ | 581,462 | $ | 418,117 | ||||||||||
Gross Profit | $ | 51,993 | $ | 21,141 | $ | 42,897 | $ | 107,873 | $ | 38,683 | ||||||||||
24 | % | 13 | % | 21 | % | 19 | % | 9 | % | |||||||||||
Net Income (Loss) | $ | 27,121 | $ | 2,290 | $ | 17,784 | $ | 42,345 | $ | (20,528 | ) | |||||||||
Diluted Earnings (Loss) Per Share | $ | 0.18 | $ | 0.02 | $ | 0.12 | $ | 0.29 | $ | (0.14 | ) | |||||||||
Adjusted EBITDA1 | $ | 58,636 | $ | 30,452 | $ | 52,269 | $ | 138,471 | $ | 74,801 | ||||||||||
Cash and cash equivalents | $ | 325,092 | $ | 356,889 | $ | 288,490 | $ | 325,092 | $ | 356,889 | ||||||||||
Cash flows from operating activities | $ | 63,161 | $ | 15,722 | $ | 46,620 | $ | 150,827 | $ | 31,323 | ||||||||||
1Adjusted EBITDA is a non-GAAP measure. See reconciliation below. |
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Segment Information, Operational and Financial Highlights |
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($ in thousands, unaudited) |
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Three Months Ended | ||||||||||||
9/30/2018 | 9/30/2017 | 6/30/2018 | ||||||||||
Revenues: | ||||||||||||
Well Intervention | $ | 154,441 | $ | 111,522 | $ | 161,759 | ||||||
Robotics | 54,340 | 47,049 | 39,060 | |||||||||
Production Facilities | 15,877 | 16,380 | 16,343 | |||||||||
Intercompany Eliminations | (12,083 | ) | (11,691 | ) | (12,537 | ) | ||||||
Total | $ | 212,575 | $ | 163,260 | $ | 204,625 | ||||||
Income (Loss) from Operations: |
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Well Intervention | $ | 34,427 | $ | 16,906 | $ | 34,470 | ||||||
Robotics | 5,601 | (9,365 | ) | (4,102 | ) | |||||||
Production Facilities | 6,694 | 7,660 | 6,866 | |||||||||
Corporate / Other | (15,567 | ) | (10,633 | ) | (12,684 | ) | ||||||
Intercompany Eliminations | 222 | 199 | 222 | |||||||||
Total | $ | 31,377 | $ | 4,767 | $ | 24,772 | ||||||
Business Segment Results
Well Intervention
Well Intervention revenues in the third quarter of 2018 decreased
Well Intervention revenues increased
Robotics
Robotics revenues in the third quarter of 2018 increased by
Robotics revenue increased 15% in the third quarter of 2018 from the third quarter of 2017. Vessel utilization was 98% in the third quarter of 2018 compared to 80% in the third quarter of 2017. ROV asset utilization decreased to 42% in the third quarter of 2018 from 46% in the third quarter of 2017; however, the third quarter of 2018 included 128 additional trenching days compared to the same quarter in 2017.
Other Expenses
Selling, general and administrative expenses were
Other expense was
Financial Condition and Liquidity
Cash and cash equivalents at
Capital additions (including capitalized interest and dry dock costs)
totaled
Operating cash flow increased to
Conference Call Information
Further details are provided in the presentation for Helix’s quarterly
teleconference to review its third quarter 2018 results (see the
“Investor Relations” page of Helix’s website, www.HelixESG.com).
The teleconference, scheduled for
About Helix
Reconciliation of Non-GAAP Financial Measures
Management evaluates performance and financial condition using certain non-GAAP metrics, primarily EBITDA, Adjusted EBITDA, net debt, net debt to book capitalization and free cash flow. We define EBITDA as earnings before income taxes, net interest expense, gain or loss on extinguishment of long-term debt, net other income or expense, and depreciation and amortization expense. 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 and other than temporary loss on note receivable, 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 define free cash flow as cash flows from operating activities less capital expenditures, net of proceeds from sale of assets.
We use EBITDA and free cash flow 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 measures of EBITDA and free cash flow provide 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, Adjusted EBITDA and free cash flow differently from the way we do, which may limit their usefulness as comparative measures. EBITDA, Adjusted EBITDA and free cash flow 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 that could
cause results to differ materially from those in the forward-looking
statements, 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. |
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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) | 2018 | 2017 | 2018 | 2017 | |||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||
Net revenues | $ | 212,575 | $ | 163,260 | $ | 581,462 | $ | 418,117 | |||||||||
Cost of sales | 160,582 | 142,119 | 473,589 | 379,434 | |||||||||||||
Gross profit | 51,993 | 21,141 | 107,873 | 38,683 | |||||||||||||
Gain (loss) on disposition of assets, net | 146 | - | 146 | (39 | ) | ||||||||||||
Selling, general and administrative expenses | (20,762 | ) | (16,374 | ) | (52,986 | ) | (46,532 | ) | |||||||||
Income (loss) from operations | 31,377 | 4,767 | 55,033 | (7,888 | ) | ||||||||||||
Equity in losses of investment | (107 | ) | (153 | ) | (378 | ) | (457 | ) | |||||||||
Net interest expense | (3,249 | ) | (3,615 | ) | (10,744 | ) | (15,480 | ) | |||||||||
Loss on extinguishment of long-term debt | (2 | ) | - | (1,183 | ) | (397 | ) | ||||||||||
Other expense, net | (709 | ) | (551 | ) | (3,225 | ) | (619 | ) | |||||||||
Other income - oil and gas | 652 | 303 | 4,068 | 3,196 | |||||||||||||
Income (loss) before income taxes | 27,962 | 751 | 43,571 | (21,645 | ) | ||||||||||||
Income tax provision (benefit) | 841 | (1,539 | ) | 1,226 | (1,117 | ) | |||||||||||
Net income (loss) | $ | 27,121 | $ | 2,290 | $ | 42,345 | $ | (20,528 | ) | ||||||||
Earnings (loss) per share of common stock: | |||||||||||||||||
Basic |
$ | 0.18 | $ | 0.02 | $ | 0.29 | $ | (0.14 | ) | ||||||||
Diluted |
$ | 0.18 | $ | 0.02 | $ | 0.29 | $ | (0.14 | ) | ||||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic | 146,700 | 145,958 | 146,679 | 145,057 | |||||||||||||
Diluted | 146,964 | 145,958 | 146,761 | 145,057 | |||||||||||||
Comparative Condensed Consolidated Balance Sheets | ||||||||||||||
ASSETS | LIABILITIES & SHAREHOLDERS' EQUITY | |||||||||||||
(in thousands) | Sep. 30, 2018 | Dec. 31, 2017 | (in thousands) | Sep. 30, 2018 | Dec. 31, 2017 | |||||||||
(unaudited) | (unaudited) | |||||||||||||
Current Assets: | Current Liabilities: | |||||||||||||
Cash and cash equivalents (1) |
$ |
325,092 |
$ |
266,592 |
Accounts payable |
$ |
62,844 |
$ |
81,299 |
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Accounts receivable, net | 157,397 | 143,283 | Accrued liabilities | 84,431 | 71,680 | |||||||||
Other current assets | 47,450 | 41,768 |
Income tax payable |
5,859 | 2,799 | |||||||||
Total Current Assets | 529,939 | 451,643 |
Current maturities of long-term debt (1) |
46,784 | 109,861 | |||||||||
Total Current Liabilities | 199,918 | 265,639 | ||||||||||||
Long-term debt (1) | 401,265 | 385,766 | ||||||||||||
Deferred tax liabilities | 102,742 | 103,349 | ||||||||||||
Property & equipment, net | 1,771,551 | 1,805,989 | Other non-current liabilities | 42,382 | 40,690 | |||||||||
Other assets, net | 76,985 | 105,205 | Shareholders' equity (1) | 1,632,168 | 1,567,393 | |||||||||
Total Assets | $ | 2,378,475 | $ | 2,362,837 | Total Liabilities & Equity | $ | 2,378,475 | $ | 2,362,837 |
(1) | Net debt to book capitalization - 7% at September 30, 2018. Calculated as net debt (total long-term debt less cash and cash equivalents - $122,957) divided by the sum of net debt and shareholders' equity ($1,755,125). |
Helix Energy Solutions Group, Inc. | ||||||||||||||||||||
Reconciliation of Non-GAAP Measures | ||||||||||||||||||||
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Earnings Release: |
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Three Months Ended | Nine Months Ended | |||||||||||||||||||
9/30/2018 | 9/30/2017 | 6/30/2018 | 9/30/2018 | 9/30/2017 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Reconciliation from Net Income (Loss) to Adjusted EBITDA: |
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Net income (loss) | $ | 27,121 | $ | 2,290 | $ | 17,784 | $ | 42,345 | $ | (20,528 | ) | |||||||||
Adjustments: | ||||||||||||||||||||
Income tax provision (benefit) | 841 | (1,539 | ) | 298 | 1,226 | (1,117 | ) | |||||||||||||
Net interest expense | 3,249 | 3,615 | 3,599 | 10,744 | 15,480 | |||||||||||||||
Loss on extinguishment of long-term debt | 2 | - | 76 | 1,183 | 397 | |||||||||||||||
Other expense, net | 709 | 551 | 3,441 | 3,225 | 619 | |||||||||||||||
Depreciation and amortization | 27,680 | 26,293 | 27,877 | 83,339 | 82,670 | |||||||||||||||
EBITDA | 59,602 | 31,210 | 53,075 | 142,062 | 77,521 | |||||||||||||||
Adjustments: | ||||||||||||||||||||
(Gain) loss on disposition of assets, net | (146 | ) | - | - | (146 | ) | 39 | |||||||||||||
Realized losses from foreign exchange contracts not designated as hedging instruments | (820 | ) | (758 | ) | (806 | ) | (2,316 | ) | (2,759 | ) | ||||||||||
Other than temporary loss on note receivable | - | - | - | (1,129 | ) | - | ||||||||||||||
Adjusted EBITDA | $ | 58,636 | $ | 30,452 | $ | 52,269 | $ | 138,471 | $ | 74,801 | ||||||||||
Free Cash Flow: |
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Cash flows from operating activities | $ | 63,161 | $ | 15,722 | $ | 46,620 | $ | 150,827 | $ | 31,323 | ||||||||||
Less: Capital expenditures, net of proceeds from sale of assets | (13,437 | ) | (37,032 | ) | (20,755 | ) | (55,406 | ) | (121,428 | ) | ||||||||||
Free cash flow |
$ | 49,724 | $ | (21,310 | ) | $ | 25,865 | $ | 95,421 | $ | (90,105 | ) | ||||||||
We define EBITDA as earnings before income taxes, net interest expense, gain or loss on extinguishment of long-term debt, net other income or expense, and depreciation and amortization expense. 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 and other than temporary loss on note receivable, which are excluded from EBITDA as a component of net other income or expense. We define free cash flow as cash flows from operating activities less capital expenditures, net of proceeds from sale of assets. We use EBITDA and free cash flow 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 measures of EBITDA and free cash flow provide 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, Adjusted EBITDA and free cash flow differently from the way we do, which may limit their usefulness as comparative measures. EBITDA, Adjusted EBITDA and free cash flow 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: https://www.businesswire.com/news/home/20181022005977/en/
Source:
Helix Energy Solutions Group, Inc.
Erik Staffeldt,
281-618-0400
Senior Vice President & CFO