Press Releases
The first quarter 2014 results included a
Summary of Results (in thousands, except per share amounts and percentages, unaudited) |
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Quarter Ended | Six Months Ended | |||||||||||||||||||
6/30/2014 | 6/30/2013 | 3/31/2014 | 6/30/2014 | 6/30/2013 | ||||||||||||||||
Revenues | $ | 305,587 | $ | 232,178 | $ | 253,572 | $ | 559,159 | $ | 429,607 | ||||||||||
Gross Profit | $ | 109,138 | $ | 67,497 | $ | 75,846 | $ | 184,984 | $ | 120,064 | ||||||||||
36 | % | 29 | % | 30 | % | 33 | % | 28 | % | |||||||||||
Net Income Applicable to
Common Shareholders |
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Income (Loss) from continuing operations | $ | 57,782 | $ | 27,240 | $ | 53,719 | $ | 111,501 | $ | 27,797 | ||||||||||
Income (Loss) from discontinued operations | - | (29 | ) | - | - | 1,029 | ||||||||||||||
Total | $ | 57,782 | $ | 27,211 | $ | 53,719 | $ | 111,501 | $ | 28,826 | ||||||||||
Diluted Earnings Per Share | ||||||||||||||||||||
Income from continuing operations | $ | 0.55 | $ | 0.26 | $ | 0.51 | $ | 1.05 | $ | 0.26 | ||||||||||
Income from discontinued operations | $ | - | $ | - | $ | - | $ | - | $ | 0.01 | ||||||||||
Total | $ | 0.55 | $ | 0.26 | $ | 0.51 | $ | 1.05 | $ | 0.27 | ||||||||||
Adjusted EBITDA from continuing operations | $ | 109,050 | $ | 74,533 | $ | 92,501 | $ | 201,551 | $ | 116,564 |
Segment Information, Operational and Financial Highlights (in thousands, unaudited) |
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Quarter Ended | ||||||||||||
6/30/2014 | 6/30/2013 | 3/31/2014 | ||||||||||
Revenues: | ||||||||||||
Well Intervention | $ | 181,218 | $ | 99,323 | $ | 159,700 | ||||||
Robotics | 119,704 | 88,374 | 87,890 | |||||||||
Subsea Construction | - | 37,659 | 358 | |||||||||
Production Facilities | 24,049 | 24,174 | 23,140 | |||||||||
Intercompany Eliminations | (19,384 | ) | (17,352 | ) | (17,516 | ) | ||||||
Total | $ | 305,587 | $ | 232,178 | $ | 253,572 | ||||||
Income from Operations: | ||||||||||||
Well Intervention | $ | 64,775 | $ | 23,912 | $ | 48,733 | ||||||
Robotics | 21,877 | 13,296 | 10,180 | |||||||||
Subsea Construction | 145 | 11,477 | 228 | |||||||||
Production Facilities | 10,459 | 14,643 | 11,384 | |||||||||
Gain (Loss) on Disposition of Assets | (1,078 | ) | (1,085 | ) | 11,496 | |||||||
Corporate / Other | (17,467 | ) | (14,207 | ) | (13,875 | ) | ||||||
Intercompany Eliminations | 45 | (839 | ) | (1,198 | ) | |||||||
Total | $ | 78,756 | $ | 47,197 | $ | 66,948 | ||||||
Business Segment Results
-
Well Intervention revenues increased 13% in the second quarter of 2014
from revenues in the first quarter of 2014, due to having a full
quarter of the Helix 534 at full utilization, as well as all
three
North Sea vessels being 100% utilized in the second quarter. The spare rental intervention riser system (IRS no. 2) continues to positively contribute to revenues; the unit was on-hire for 86 days during the second quarter of 2014 versus 42 days in the first quarter of 2014. Vessel utilization for the Q4000 in the Gulf ofMexico was slightly down – 90% utilization in the second quarter of 2014 versus 100% in the first quarter of 2014, due to a planned regulatory inspection and thruster repairs. - For Robotics, chartered vessel fleet utilization increased to 89% for the quarter from 80% in the first quarter of 2014. Overall stronger asset utilization and an increase in vessel days worked were the primary drivers resulting in a 36% growth in revenues in the second quarter of 2014 over the first quarter of 2014. Spot vessels contributed 161 days of vessel utilization during the second quarter of 2014. ROV, trencher and ROVDrill utilization in the second quarter of 2014 increased by 7% over the first quarter of 2014.
-
During the second quarter of 2014, the Marco Polo platform was shut in
following a compressor fire on
May 8, 2014 . The platform remained shut in for the remainder of the quarter, thus marginally affecting Production Facilities earnings in the second quarter. Production resumed at the platform in earlyJuly 2014 .
Other Expenses
-
Selling, general and administrative expenses were 9.6% of revenue in
the second quarter of 2014, 8.0% of revenue in the first quarter of
2014 and 8.3% in the second quarter of 2013. Our second quarter 2014
expense includes
$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
$4.5 million in the second quarter of 2014 from$5.3 million in the first quarter of 2014. Net interest expense remained flat at$4.5 million in both the second and first quarter of 2014. Other expense was minimal in the second quarter of 2014 compared to$0.8 million in the first quarter of 2014, which reflects foreign exchange fluctuations in our non-U.S. dollar functional currencies.
Financial Condition and Liquidity
-
Our total liquidity at
June 30, 2014 was approximately$1.1 billion , consisting of$501 million in cash and cash equivalents and$583 million in unused capacity under our revolver. Consolidated net debt atJune 30, 2014 was$57 million . Net debt to book capitalization atJune 30, 2014 was 3%. (Net debt to book capitalization is a non-GAAP measure. See reconciliation below.) -
We incurred capital expenditures (including capitalized interest)
totaling
$105 million in the second quarter of 2014, compared to$70 million in the first quarter of 2014 and$59 million in the second quarter of 2013.
Conference Call Information
Further details are provided in the presentation for Helix’s quarterly
conference call to review its second 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 Jun. 30, | Six Months Ended Jun. 30, | |||||||||||||||||||||||
(in thousands, except per share data) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||
Net revenues | $ | 305,587 | $ | 232,178 | $ | 559,159 | $ | 429,607 | ||||||||||||||||
Cost of sales | 196,449 | 164,681 | 374,175 | 309,543 | ||||||||||||||||||||
Gross profit | 109,138 | 67,497 | 184,984 | 120,064 | ||||||||||||||||||||
Loss on commodity derivative contracts | - | - | - | (14,113 | ) | |||||||||||||||||||
Gain (loss) on disposition of assets, net | (1,078 | ) | (1,085 | ) | 10,418 | (1,085 | ) | |||||||||||||||||
Selling, general and administrative expenses | (29,304 | ) | (19,215 | ) | (49,698 | ) | (42,431 | ) | ||||||||||||||||
Income from operations | 78,756 | 47,197 | 145,704 | 62,435 | ||||||||||||||||||||
Equity in earnings (losses) of investments | (507 | ) | 683 | 201 | 1,293 | |||||||||||||||||||
Other income - oil and gas | 1,596 | 1,282 | 13,872 | 4,100 | ||||||||||||||||||||
Net interest expense and other | (4,534 | ) | (12,556 | ) | (9,827 | ) | (29,445 | ) | ||||||||||||||||
Income before income taxes | 75,311 | 36,606 | 149,950 | 38,383 | ||||||||||||||||||||
Income tax provision | 17,529 | 8,577 | 37,946 | 9,020 | ||||||||||||||||||||
Net income from continuing operations | 57,782 | 28,029 | 112,004 | 29,363 | ||||||||||||||||||||
Income (loss) from discontinued operations, net of tax | - | (29 | ) | - | 1,029 | |||||||||||||||||||
Net income, including noncontrolling interests | 57,782 | 28,000 | 112,004 | 30,392 | ||||||||||||||||||||
Less net income applicable to noncontrolling interests | - | (789 | ) | (503 | ) | (1,566 | ) | |||||||||||||||||
Net income applicable to Helix | $ | 57,782 | $ | 27,211 | $ | 111,501 | $ | 28,826 | ||||||||||||||||
Weighted Avg. Common Shares Outstanding: | ||||||||||||||||||||||||
Basic | 104,992 | 105,046 | 105,059 | 105,039 | ||||||||||||||||||||
Diluted | 105,295 | 105,133 | 105,359 | 105,141 | ||||||||||||||||||||
Basic earnings per share of common stock: | ||||||||||||||||||||||||
Continuing operations | $ | 0.55 | $ | 0.26 | $ | 1.06 | $ | 0.26 | ||||||||||||||||
Discontinued operations | - | - | - | 0.01 | ||||||||||||||||||||
Net income per share of common stock | $ | 0.55 | $ | 0.26 | $ | 1.06 | $ | 0.27 | ||||||||||||||||
Diluted earnings per share of common stock: | ||||||||||||||||||||||||
Continuing operations | $ | 0.55 | $ | 0.26 | $ | 1.05 | $ | 0.26 | ||||||||||||||||
Discontinued operations | - | - | - | 0.01 | ||||||||||||||||||||
Net income per share of common stock | $ | 0.55 | $ | 0.26 | $ | 1.05 | $ | 0.27 |
Comparative Condensed Consolidated Balance Sheets | |||||||||||||||||
ASSETS | LIABILITIES & SHAREHOLDERS' EQUITY | ||||||||||||||||
(in thousands) | Jun. 30, 2014 | Dec. 31, 2013 | (in thousands) | Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||
Current Assets: | Current Liabilities: | ||||||||||||||||
Cash and equivalents (1) | $ | 501,457 | $ | 478,200 | Accounts payable | $ | 157,553 | $ | 72,602 | ||||||||
Accounts receivable, net | 226,750 | 184,165 | Accrued liabilities | 79,130 | 96,482 | ||||||||||||
Income tax receivable, net | 23,771 | - | Income tax payable | - | 760 | ||||||||||||
Current deferred tax assets | 24,370 | 51,573 | Current maturities of L-T debt (1) | 20,508 | 20,376 | ||||||||||||
Other current assets | 41,917 | 29,709 | |||||||||||||||
Total Current Assets | 818,265 | 743,647 | Total Current Liabilities | 257,191 | 190,220 | ||||||||||||
Property & equipment, net | 1,604,188 | 1,532,217 | Long-term debt (1) | 538,254 | 545,776 | ||||||||||||
Equity investments | 152,877 | 157,919 | Deferred tax liabilities | 272,448 | 265,879 | ||||||||||||
Goodwill | 63,829 | 63,230 | Other non-current liabilities | 11,297 | 18,295 | ||||||||||||
Other assets, net | 61,951 | 47,267 | Shareholders' equity (1) | 1,621,920 | 1,524,110 | ||||||||||||
Total Assets | $ | 2,701,110 | $ | 2,544,280 | Total Liabilities & Equity | $ | 2,701,110 | $ | 2,544,280 | ||||||||
(1) Net debt to book capitalization - 3% at June 30, 2014. Calculated as total debt less cash and equivalents ($57,305) divided by sum of total net debt and shareholders' equity ($1,679,225). |
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Helix Energy Solutions Group, Inc. Reconciliation of Non GAAP Measures Three and Six Months Ended June 30, 2014 |
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Earnings Release: |
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Reconciliation From Net Income from Continuing Operations to Adjusted EBITDA: |
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Six Months | |||||||||||||||||||
2Q14 | 2Q13 | 1Q14 | 2014 | 2013 | |||||||||||||||
(in thousands) | |||||||||||||||||||
Net income from continuing operations | $ | 57,782 | $ | 28,029 | $ | 54,222 | $ | 112,004 | $ | 29,363 | |||||||||
Adjustments: | |||||||||||||||||||
Income tax provision | 17,529 | 8,577 | 20,417 | 37,946 | 9,020 | ||||||||||||||
Net interest expense and other | 4,534 | 12,556 | 5,293 | 9,827 | 29,445 | ||||||||||||||
Depreciation and amortization | 28,127 | 25,312 | 24,726 | 52,853 | 49,692 | ||||||||||||||
EBITDA from continuing operations | 107,972 | 74,474 | 104,658 | 212,630 | 117,520 | ||||||||||||||
Adjustments: | |||||||||||||||||||
Noncontrolling interests | - | (1,026 | ) | (661 | ) | (661 | ) | (2,041 | ) | ||||||||||
(Gain) loss on disposition of assets, net | 1,078 | 1,085 | (11,496 | ) | (10,418 | ) | 1,085 | ||||||||||||
Adjusted EBITDA from continuing operations | $ | 109,050 | $ | 74,533 | $ | 92,501 | $ | 201,551 | $ | 116,564 | |||||||||
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. |
Helix Energy Solutions Group, Inc.
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Earnings Release: |
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Reconciliation of significant items: |
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(in thousands, except per share data) |
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2Q14 | 1Q14 | ||||||||
Significant items: | |||||||||
Gain on sale of Ingleside spoolbase | $ | - | $ | 10,457 | |||||
Insurance reimbursement settlement | - | 7,217 | |||||||
Provision for uncertain collection of receivables | 5,196 | - | |||||||
Tax provision of the above | (1,819 | ) | (6,186 | ) | |||||
Significant items, net: | $ | 3,377 | $ | 11,488 | |||||
Diluted shares | 105,295 | 105,375 | |||||||
Net after income tax effect per share | $ | 0.03 | $ | 0.11 |
Source:
Helix Energy Solutions Group, Inc.
Terrence Jamerson, 281-618-0400
Director,
Finance & Investor Relations