Earnings release dated October 27, 2008

EX-99.1 2 dex991.htm EARNINGS RELEASE DATED OCTOBER 27, 2008 Earnings release dated October 27, 2008

Exhibit 99.1

LOGO

Tidewater Reports Second Quarter Results For Fiscal 2009

NEW ORLEANS—October 27, 2008—Tidewater Inc. (NYSE:TDW) announced today second quarter net earnings for the period ended September 30, 2008, of $95.4 million, or $1.85 per common share, on revenues of $346.8 million. For the same quarter last year, net earnings were $86.5 million, or $1.56 per common share, on revenues of $319.0 million. The immediately preceding quarter ended June 30, 2008, had net earnings of $84.8 million, or $1.64 per common share, on revenues of $340.1 million.

As previously announced, Tidewater will hold a conference call to discuss September quarterly earnings on Monday, October 27, 2008, at 10:00 a.m. CDT, promptly following the Company’s release of quarterly earnings. Investors and interested parties may listen to the teleconference via telephone by calling 1-888-388-7493 if calling from the U.S. or Canada (1-706-679-8348 if calling from outside the U.S.) and ask for the “Tidewater” call just prior to the scheduled start. A replay of the conference call will be available beginning at 12:00 p.m. CDT on October 27, 2008, and will continue until 11:59 p.m. CDT on October 29, 2008. To hear the replay, call 1-800-642-1687 (1-706-645-9291 if calling from outside the U.S.). The conference call ID number is 67943442.

A simultaneous webcast of the conference call will be accessible online at the Tidewater Inc. website, www.tdw.com, and at the CCBN website, www.streetevents.com. The online replay will be available until November 26, 2008.

Tidewater Inc. owns 438 vessels, the world’s largest fleet of vessels serving the global offshore energy industry.

Note: all per-share amounts are stated on a diluted basis.

Contact:

Tidewater Inc., New Orleans

Joe Bennett, Executive Vice President and Chief Investor Relations Officer

504-566-4506

SOURCE: Tidewater Inc.

Financial information is displayed on the next page.

TIDEWATER INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and par value data)


ASSETS	September 30, 2008		March 31, 2008
Current assets:
Cash and cash equivalents	$	144,552	270,205
Trade and other receivables, net		337,385	308,813
Marine operating supplies		54,684	46,369
Other current assets		11,852	5,208
Total current assets		548,473	630,595
Investments in, at equity, and advances to unconsolidated companies		28,695	27,433
Properties and equipment:
Vessels and related equipment		3,082,637	2,867,391
Other properties and equipment		83,111	82,357
		3,165,748	2,949,748
Less accumulated depreciation and amortization		1,293,424	1,270,710
Net properties and equipment		1,872,324	1,679,038
Goodwill		328,754	328,754
Other assets		88,732	85,960
Total assets	$	2,866,978	2,751,780

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities on capitalized lease obligations		—	10,059
Accounts payable		84,377	93,147
Accrued expenses		54,838	54,497
Accrued property and liability losses		6,085	6,271
Other current liabilities		52,295	34,930
Total current liabilities		197,595	198,904
Long-term debt		300,000	300,000
Deferred income taxes		196,279	189,605
Accrued property and liability losses		10,239	12,530
Other liabilities and deferred credits		120,545	120,657
Commitment and contingencies (Note 5)
Stockholders’ equity:
Common stock of $.10 par value, 125,000,000 shares authorized, issued 51,539,804 shares at September and 52,318,806 shares at March		5,154	5,232
Other stockholders’ equity		2,037,166	1,924,852
Total stockholders’ equity		2,042,320	1,930,084
Total liabilities and stockholders’ equity	$	2,866,978	2,751,780

TIDEWATER INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except share and per share data)


	Quarter Ended September 30,					Six Months Ended September 30,
		2008		2007		2008		2007
Revenues:
Vessel revenues	$	344,637		297,368		673,008		590,259
Other marine revenues		2,192		21,678		13,875		34,269
		346,829		319,046		686,883		624,528
Costs and expenses:
Vessel operating costs		175,371		142,307		352,099		280,847
Costs of other marine revenues		1,315		19,485		11,744		31,232
Depreciation and amortization		30,657		29,836		61,278		58,033
General and administrative		35,315		30,680		70,423		62,192
Gain on sales of assets		(5,851	)	(2,102	)	(16,238	)	(9,032	)
		236,807		220,206		479,306		423,272
		110,022		98,840		207,577		201,256
Other income (expenses):
Foreign exchange gain (loss)		2,487		141		1,297		(384	)
Equity in net earnings of unconsolidated companies		3,798		3,725		7,994		7,111
Interest income and other, net		1,425		4,061		3,324		9,702
Interest and other debt costs		(108	)	(1,336	)	(428	)	(4,178	)
		7,602		6,591		12,187		12,251
Earnings before income taxes		117,624		105,431		219,764		213,507
Income taxes		22,193		18,965		39,557		39,499
Net earnings	$	95,431		86,466		180,207		174,008

Basic earnings per common share	$	1.86		1.57		3.51		3.13

Diluted earnings per common share	$	1.85		1.56		3.49		3.11

Weighted average common shares outstanding		51,246,848		55,111,678		51,394,460		55,593,382
Incremental common shares from stock options		239,236		447,266		267,346		447,033
Adjusted weighted average common shares		51,486,084		55,558,944		51,661,806		56,040,415

Cash dividends declared per common share	$	.25		.15		.50		.30

TIDEWATER INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)


	Six Months Ended September 30,
	2008			2007

Operating activities:
Net earnings	$	180,207		174,008
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		61,278		58,033
Provision (benefit) for deferred income taxes		(4,890	)	(13,399	)
Gain on sales of assets		(16,238	)	(9,032	)
Equity in earnings of unconsolidated companies, net of dividends		(1,574	)	(6,620	)
Compensation expense - stock-based		6,152		6,049
Excess tax benefits on stock options exercised		(1,438	)	(15,102	)
Changes in assets and liabilities, net:
Trade and other receivables		(23,522	)	(9,185	)
Marine operating supplies		(8,315	)	4,547
Other current assets		(6,644	)	(3,281	)
Accounts payable		(9,442	)	(4,804	)
Accrued expenses		341		7,777
Accrued property and liability losses		(187	)	(106	)
Other current liabilities		19,143		27,003
Other, net		2,032		4,583

Net cash provided by operating activities		196,903		220,471

Cash flows from investing activities:
Proceeds from sales of assets		20,638		58,714
Additions to properties and equipment		(259,845	)	(216,453	)
Other		312		—

Net cash used in investing activities		(238,895	)	(157,739	)

Cash flows from financing activities:
Principal payments on capitalized lease obligations		(10,059	)	(2,527	)
Proceeds from exercise of stock options		4,347		43,419
Cash dividends		(25,753	)	(16,806	)
Stock repurchases		(53,634	)	(174,743	)
Excess tax benefits on stock options exercised		1,438		15,102

Net cash used in financing activities		(83,661	)	(135,555	)

Net change in cash and cash equivalents		(125,653	)	(72,823	)
Cash and cash equivalents at beginning of period		270,205		393,806
Cash and cash equivalents at end of period	$	144,552		320,983

Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest	$	6,970		8,839
Income taxes	$	29,833		29,297
Non-cash financing activities:
Capitalized leases	$	—		33,876

The company’s revenues and operating costs and its related percentage of total revenue for the quarters and six-month periods ended September 30, 2008 and 2007 and for the quarter ended June 30, 2008, were as follows:


	Quarter Ended September 30,									Six Months Ended September 30,								Quarter Ended June 30,
(In thousands)		2008			%	2007			%	2008			%	2007			%	2008			%
Revenues:
Vessel revenues:
United States	$	40,002		12	%	43,183		14	%	80,104		12	%	86,255		14	%	40,102		12	%
International		304,635		88	%	254,185		80	%	592,904		86	%	504,004		81	%	288,269		85	%
		344,637		99	%	297,368		93	%	673,008		98	%	590,259		95	%	328,371		97	%
Other marine revenues		2,192		1	%	21,678		7	%	13,875		2	%	34,269		5	%	11,683		3	%
	$	346,829		100	%	319,046		100	%	686,883		100	%	624,528		100	%	340,054		100	%

Operating costs:
Vessel operating costs:
Crew costs	$	92,086		27	%	76,694		24	%	185,238		27	%	152,939		24	%	93,152		27	%
Repair and maintenance		32,702		9	%	25,402		8	%	68,550		10	%	49,960		8	%	35,848		11	%
Insurance and loss reserves		5,608		2	%	4,539		1	%	11,081		2	%	10,577		2	%	5,473		2	%
Fuel, lube and supplies		18,609		5	%	12,169		4	%	33,775		5	%	23,485		4	%	15,166		4	%
Vessel operating leases		1,749		1	%	965		<1	%	3,498		1	%	1,731		<1	%	1,749		1	%
Other		24,617		7	%	22,538		7	%	49,957		7	%	42,155		7	%	25,340		7	%
		175,371		51	%	142,307		45	%	352,099		51	%	280,847		45	%	176,728		52	%
Costs of other marine revenues		1,315		<1	%	19,485		6	%	11,744		2	%	31,232		5	%	10,429		3	%
	$	176,686		51	%	161,792		51	%	363,843		53	%	312,079		50	%	187,157		55	%


The company’s vessel operating profit and other components of earnings before income taxes and its related percentage of total revenue for the quarters and six-month periods ended September 30, 2008 and 2007 and for the quarter ended June 30, 2008, were as follows:

	Quarter Ended September 30,									Six Months Ended September 30,								Quarter Ended June 30,
(In thousands)		2008			%	2007			%	2008			%	2007			%	2008			%
Vessel activity:
United States	$	10,994		3	%	9,815		3	%	20,283		3	%	20,180		3	%	9,289		3	%
International		107,086		31	%	94,770		30	%	194,348		28	%	190,680		31	%	87,262		26	%
		118,080		34	%	104,585		33	%	214,631		31	%	210,860		34	%	96,551		28	%
Gain on sales of assets		5,851		2	%	2,102		1	%	16,238		2	%	9,032		1	%	10,387		3	%
Other marine services		784		<1	%	2,043		1	%	1,888		<1	%	2,778		<1	%	1,104		<1	%
Operating profit		124,715		36	%	108,730		34	%	232,757		34	%	222,670		36	%	108,042		32	%
Equity in net earnings of unconsolidated companies		3,798		1	%	3,725		1	%	7,994		1	%	7,111		1	%	4,196		1	%
Interest and other debt costs		(108	)	(<1	%)	(1,336	)	(<1	%)	(428	)	(<1	%)	(4,178	)	(1	%)	(320	)	(<1	%)
Corporate G&A		(10,778	)	(3	%)	(9,904	)	(3	%)	(21,346	)	(3	%)	(21,001	)	(3	%)	(10,568	)	(3	%)
Other income		(3	)	(<1	%)	4,216		1	%	787		<1	%	8,905		1	%	790		<1	%
Earnings before income taxes	$	117,624		34	%	105,431		33	%	219,764		32	%	213,507		34	%	102,140		30	%

The company’s vessel utilization percentages and average day rates by vessel class and in total for the quarters and six month periods ended September 30, 2008 and 2007 and the quarter ended June 30, 2008, were as follows:


	Quarter Ended September 30,				Six Months Ended September 30,		Quarter Ended June 30,
		2008		2007	2008	2007	2008
UTILIZATION:
United States-based fleet:
Deepwater vessels		98.0	%	95.1	96.3	93.4	94.9
Towing-supply/supply		48.0		56.6	48.9	58.9	49.8
Crew/utility		75.5		88.5	76.4	88.4	77.3
Total		61.4	%	69.1	62.2	69.7	63.0
International-based fleet:
Deepwater vessels		85.8	%	91.8	84.7	94.1	83.6
Towing-supply/supply		75.7		76.9	76.5	77.1	77.2
Crew/utility		79.5		89.0	82.8	87.5	86.1
Offshore tugs		60.4		59.8	56.7	61.5	53.4
Other		59.0		48.3	48.8	51.4	41.8
Total		75.8	%	78.3	76.2	78.6	76.6
Worldwide fleet:
Deepwater vessels		88.0	%	92.5	87.0	94.0	85.9
Towing-supply/supply		72.2		74.1	72.9	74.5	73.6
Crew/utility		78.9		88.9	81.8	87.7	84.7
Offshore tugs		60.4		59.8	56.7	61.5	53.4
Other		59.0		48.3	48.8	51.4	41.8
Total		74.0	%	77.0	74.4	77.4	74.8
AVERAGE VESSEL DAY RATES:
United States-based fleet:
Deepwater vessels	$	25,233		23,382	24,862	23,394	24,514
Towing-supply/supply		12,867		11,856	12,234	11,907	11,633
Crew/utility		6,017		6,270	6,015	6,136	6,010
Total	$	13,510		12,254	13,164	12,126	12,835
International-based fleet:
Deepwater vessels	$	26,831		22,423	25,820	22,805	24,728
Towing-supply/supply		12,375		10,080	12,015	9,781	11,660
Crew/utility		5,184		4,584	5,071	4,624	4,965
Offshore tugs		8,302		6,511	8,614	6,781	8,931
Other		10,597		4,419	10,233	5,074	9,893
Total	$	12,048		9,768	11,631	9,662	11,221
Worldwide fleet:
Deepwater vessels	$	26,517		22,615	25,615	22,913	24,679
Towing-supply/supply		12,416		10,267	12,034	10,020	11,658
Crew/utility		5,305		4,852	5,206	4,854	5,114
Offshore tugs		8,302		6,511	8,614	6,781	8,931
Other		10,597		4,419	10,233	5,074	9,893
Total	$	12,201		10,064	11,795	9,958	11,396

The company’s average number of vessels by class and geographic distribution for the quarters and six-month periods ended September 30, 2008 and 2007 and for the quarter ended June 30, 2008, were as follows:


	Quarter Ended September 30,		Six Months Ended September 30,		Quarter Ended June 30,
	2008	2007	2008	2007	2008
United States-based fleet:
Deepwater vessels	7	7	7	7	8
Towing-supply/supply	33	35	33	36	34
Crew/utility	13	13	13	13	13
Total	53	55	53	56	55
International-based fleet:
Deepwater vessels	32	30	32	30	31
Towing-supply/supply	224	221	225	219	226
Crew/utility	70	68	70	71	70
Offshore tugs	33	38	34	37	36
Other	3	5	4	5	5
Total	362	362	365	362	368
Owned or chartered vessels included in marine revenues	415	417	418	418	423
Vessels withdrawn from service	16	24	18	25	19
Joint-venture and other	14	14	14	14	14
Total	445	455	450	457	456

The table below summarizes the company’s vessel commitments by vessel class and type as of September 30, 2008:


	U.S. Built			International Built
Vessel class and type	Number of Vessels	Total Cost Commitment	Expended Through 09/30/08	Number of Vessels	Total Cost Commitment	Expended Through 09/30/08
		(In thousands)			(In thousands)
Deepwater vessels:
Anchor handling towing supply	—	—	—	6	$173,893	$85,180
Platform supply vessels	2	$63,604	$19,563	20	$513,368	$130,818
Replacement Fleet:
Anchor handling towing supply	—	—	—	17	$280,997	$84,507
Platform supply vessels	—	—	—	6	$74,336	$30,594
Crewboats and offshore tugs:
Crewboats	—	—	—	4	$21,703	$10,950
Offshore tugs	—	—	—	2	$28,362	$16,333
Totals	2	$63,604	$19,563	55	$1,092,659	$358,382

The table below summarizes by vessel class and vessel type the number of vessels expected to be delivered to the company by quarter of the various vessel commitments as discussed above:


	Quarter Period Ended
Vessel class and type	12/08	03/09	06/09	09/09	12/09	Thereafter

Deepwater vessels:
Anchor handling towing supply	—	—	1	1	1	3
Platform supply vessels	—	3	2	3	1	13
Replacement Fleet:
Anchor handling towing supply	5	3	1	—	2	6
Platform supply vessels	—	2	1	1	1	1
Crewboats and offshore tugs:
Crewboats	—	2	1	1	—	—
Offshore tugs	—	—	—	2	—	—
Totals	5	10	6	8	5	23