Press Releases
Summary of Results |
|||||||||||||||||||||||||||||
($ in thousands, except per share amounts, unaudited) | |||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
6/30/2015 | 6/30/2014 | 3/31/2015 | 6/30/2015 | 6/30/2014 | |||||||||||||||||||||||||
Revenues | $ | 166,016 | $ | 305,587 | $ | 189,641 | $ | 355,657 | $ | 559,159 | |||||||||||||||||||
Gross Profit | $ | 24,208 | $ | 109,138 | $ | 34,947 | $ | 59,155 | $ | 184,984 | |||||||||||||||||||
15 | % | 36 | % | 18 | % | 17 | % | 33 | % | ||||||||||||||||||||
Net Income (Loss) Applicable to Common Shareholders | $ | (2,635 | ) | $ | 57,782 | $ | 19,642 | $ | 17,007 | $ | 111,501 | ||||||||||||||||||
Diluted Earnings (Losses) Per Share | $ | (0.03 | ) | $ | 0.55 | $ | 0.19 | $ | 0.16 | $ | 1.05 | ||||||||||||||||||
Adjusted EBITDA1 | $ | 35,689 | $ | 109,050 | $ | 51,364 | $ | 87,053 | $ | 201,551 | |||||||||||||||||||
1 EBITDA is a non-GAAP measure. See reconciliation below. |
Segment Information, Operational and Financial Highlights ($ in thousands, unaudited) |
|||||||||||||||
Three Months Ended | |||||||||||||||
6/30/2015 | 6/30/2014 | 3/31/2015 | |||||||||||||
Revenues: | |||||||||||||||
Well Intervention | $ | 85,675 | $ | 181,218 | $ | 104,051 | |||||||||
Robotics | 75,101 | 119,704 | 80,171 | ||||||||||||
Production Facilities | 20,293 | 24,049 | 18,385 | ||||||||||||
Intercompany Eliminations | (15,053 | ) | (19,384 | ) | (12,966 | ) | |||||||||
Total | $ | 166,016 | $ | 305,587 | $ | 189,641 | |||||||||
Income from Operations: | |||||||||||||||
Well Intervention | $ | 4,135 | $ | 64,775 | $ | 14,794 | |||||||||
Robotics | 4,303 | 21,877 | 9,457 | ||||||||||||
Production Facilities | 8,444 | 10,459 | 4,578 | ||||||||||||
Gain (Loss) on Disposition of Assets | - | (1,078 | ) | - | |||||||||||
Corporate / Other | (9,009 | ) | (17,322 | ) | (6,607 | ) | |||||||||
Intercompany Eliminations | (199 | ) | 45 | 106 | |||||||||||
Total | $ | 7,674 | $ | 78,756 | $ | 22,328 | |||||||||
Business Segment Results
-
Well Intervention revenues decreased 18% in the second quarter of 2015
from revenues in the first quarter of 2015 primarily due to lower
vessel utilization in the Gulf of
Mexico . Vessel utilization in the Gulf ofMexico was 42% in the second quarter compared to 81% in the first quarter of 2015. The Q4000 was in dry-dock for 64 days during the quarter, while the H534 utilization decreased to 55% in the second quarter compared to 71% in the first quarter of 2015. In theNorth Sea , vessel utilization was 84% in the second quarter, compared to 54% in the first quarter of 2015. The Well Enhancer was fully utilized in the second quarter, while the Skandi Constructor utilization increased to 68% in the second quarter after being dockside most of the first quarter and most of April. The rental intervention riser systems continue to positively contribute to revenues;IRS #2 was on-hire for entire second quarter of 2015, whileIRS #1 was deployed in June and on-hire for 25 days. - Robotics revenues decreased 6% in the second quarter of 2015 from revenues in the first quarter of 2015 driven by lower selling rates. The robotics chartered vessel fleet utilization decreased to 81% for the quarter from 86% in the first quarter of 2015. During the second quarter we added the Grand Canyon II to our chartered vessel fleet, increasing the fleet to five vessels. ROV utilization remained constant quarter over quarter at 61%.
Other Expenses
-
Selling, general and administrative expenses were 10.0% of revenue in
the second quarter of 2015, compared to 6.7% of revenue in the first
quarter of 2015. Our second quarter 2015 expenses include
$2.5 million of charges associated with the provision for the uncertain collection of a portion of an existing trade receivable. The decrease in SG&A during Q1 primarily reflects a reduction of costs associated with our variable performance-based incentive compensation. -
Net interest expense and other increased to
$10.3 million in the second quarter of 2015 from$5.2 million in the first quarter of 2015. Net interest expense increased to$5.2 million in the second quarter of 2015, reflecting the funding of the Q5000 Term Loan at the end of April. Other expense was$5.0 million in the second quarter of 2015 compared to$1.2 million in the first quarter of 2015, which primarily reflects foreign exchange fluctuations in our non-U.S. dollar functional currencies.
Financial Condition and Liquidity
-
Our total liquidity at
June 30, 2015 was approximately$1.0 billion , consisting of$500 million in cash and cash equivalents and$450 million in unused availability under our revolver. Consolidated net debt atJune 30, 2015 was$294 million . Net debt to book capitalization atJune 30, 2015 was 15%. (Net debt to book capitalization is a non-GAAP measure. See reconciliation below.) -
We incurred capital expenditures (including capitalized interest)
totaling
$197 million in the second quarter of 2015, compared to$58 million in the first quarter of 2015. The increase in capital expenditures in the second quarter was driven by the final shipyard payment associated with the delivery of the Q5000 vessel.
Conference Call Information
Further details are provided in the presentation for Helix’s quarterly
conference call to review its second 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 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. 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 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 which 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 | |||||||||||||||||
Three Months Ended Jun. 30, | Six Months Ended Jun. 30, | ||||||||||||||||
(in thousands, except per share data) | 2015 | 2014 | 2015 | 2014 | |||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||
Net revenues | $ | 166,016 | $ | 305,587 | $ | 355,657 | $ | 559,159 | |||||||||
Cost of sales | 141,808 | 196,449 | 296,502 | 374,175 | |||||||||||||
Gross profit | 24,208 | 109,138 | 59,155 | 184,984 | |||||||||||||
Gain on disposition of assets, net | - | (1,078 | ) | - | 10,418 | ||||||||||||
Selling, general and administrative expenses | (16,534 | ) | (29,304 | ) | (29,153 | ) | (49,698 | ) | |||||||||
Income from operations | 7,674 | 78,756 | 30,002 | 145,704 | |||||||||||||
Equity in earnings (losses) of investments | (323 | ) | (507 | ) | (302 | ) | 201 | ||||||||||
Other income - oil and gas | 899 | 1,596 | 3,825 | 13,872 | |||||||||||||
Net interest expense and other | (10,271 | ) | (4,534 | ) | (15,497 | ) | (9,827 | ) | |||||||||
Income (loss) before income taxes | (2,021 | ) | 75,311 | 18,028 | 149,950 | ||||||||||||
Income tax provision | 614 | 17,529 | 1,021 | 37,946 | |||||||||||||
Net income (loss), including noncontrolling interests | (2,635 | ) | 57,782 | 17,007 | 112,004 | ||||||||||||
Less net income applicable to noncontrolling interests | - | - | - | (503 | ) | ||||||||||||
Net income (loss) applicable to common shareholders | $ | (2,635 | ) | $ | 57,782 | $ | 17,007 | $ | 111,501 | ||||||||
Earnings (losses) per share of common stock: | |||||||||||||||||
Basic |
$ | (0.03 | ) | $ | 0.55 | $ | 0.16 | $ | 1.06 | ||||||||
Diluted |
$ | (0.03 | ) | $ | 0.55 | $ | 0.16 | $ | 1.05 | ||||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic | 105,357 | 104,992 | 105,324 | 105,059 | |||||||||||||
Diluted | 105,357 | 105,295 | 105,324 | 105,359 |
Comparative Condensed Consolidated Balance Sheets | ||||||||||||||||||||
ASSETS | LIABILITIES & SHAREHOLDERS' EQUITY | |||||||||||||||||||
(in thousands) | Jun. 30, 2015 | Dec. 31, 2014 | (in thousands) | Jun. 30, 2015 | Dec. 31, 2014 | |||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||
Current Assets: | Current Liabilities: | |||||||||||||||||||
Cash and equivalents (1) | $ | 500,062 | $ | 476,492 | Accounts payable | $ | 98,804 | $ | 83,403 | |||||||||||
Accounts receivable, net | 163,978 | 135,300 | Accrued liabilities | 66,788 | 104,923 | |||||||||||||||
Current deferred tax assets | 32,331 | 31,180 | Income tax payable | - | 9,143 | |||||||||||||||
Other current assets | 36,664 | 51,301 | Current maturities of L-T debt (1) | 71,497 | 28,144 | |||||||||||||||
Total Current Assets | 733,035 | 694,273 | Total Current Liabilities | 237,089 | 225,613 | |||||||||||||||
Property & equipment, net | 1,919,973 | 1,735,384 | Long-term debt (1) | 722,515 | 523,228 | |||||||||||||||
Equity investments | 145,588 | 149,623 | Deferred tax liabilities | 257,852 | 260,275 | |||||||||||||||
Goodwill | 62,294 | 62,146 | Other non-current liabilities | 41,414 | 38,108 | |||||||||||||||
Other assets, net | 73,306 | 59,272 | Shareholders' equity (1) | 1,675,326 | 1,653,474 | |||||||||||||||
Total Assets | $ | 2,934,196 | $ | 2,700,698 | Total Liabilities & Equity | $ | 2,934,196 | $ | 2,700,698 | |||||||||||
(1) Net debt to book capitalization - 15% at June 30, 2015. Calculated as total debt less cash and equivalents ($293,950) divided by sum of total net debt and shareholders' equity ($1,969,276). |
Helix Energy Solutions Group, Inc. |
|||||||||||||||||
Reconciliation of Non-GAAP Measures |
|||||||||||||||||
Three and Six Months Ended June 30, 2015 |
|||||||||||||||||
Earnings Release: |
|||||||||||||||||
Reconciliation From Net Income (Loss) Applicable to Common Shareholders to Adjusted EBITDA: |
|||||||||||||||||
Six Months | |||||||||||||||||
2Q15 | 2Q14 | 1Q15 | 2015 | 2014 | |||||||||||||
(in thousands) |
|||||||||||||||||
Net income (loss) applicable to common shareholders | $ | (2,635 | ) | $ | 57,782 | $ | 19,642 | $ | 17,007 | $ | 111,501 | ||||||
Adjustments: | |||||||||||||||||
Net income applicable to noncontrolling interests | - | - | - | - | 503 | ||||||||||||
Income tax provision | 614 | 17,529 | 407 | 1,021 | 37,946 | ||||||||||||
Net interest expense and other | 10,271 | 4,534 | 5,226 | 15,497 | 9,827 | ||||||||||||
Depreciation and amortization | 27,439 | 28,127 | 26,089 | 53,528 | 52,853 | ||||||||||||
EBITDA |
35,689 | 107,972 | 51,364 | 87,053 | 212,630 | ||||||||||||
Adjustments: | |||||||||||||||||
Noncontrolling interests | - | - | - | - | (661 | ) | |||||||||||
(Gain) loss on disposition of assets, net | - | 1,078 | - | - | (10,418 | ) | |||||||||||
Adjusted EBITDA | $ | 35,689 | $ | 109,050 | $ | 51,364 | $ | 87,053 | $ | 201,551 | |||||||
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 which are excluded from these measures. |
View source version on businesswire.com: http://www.businesswire.com/news/home/20150720006425/en/
Source:
Helix Energy Solutions Group, Inc.
Erik Staffeldt,
281-618-0400
Finance & Treasury Director