Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. |
Form 20-F ý Form 40- F ¨ |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1). |
Yes ¨ No ý |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7). |
Yes ¨ No ý |
TEEKAY CORPORATION | |||
Date: February 22, 2018 | By: | /s/ Vincent Lok | |
Vincent Lok Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
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• | Reported consolidated GAAP net loss attributable to shareholders of Teekay of $13.7 million, or $0.16 per share, and consolidated adjusted net loss attributable to shareholders of Teekay(1) of $9.5 million, or $0.11 per share, in the fourth quarter of 2017. |
• | Generated GAAP consolidated income from vessel operations of $66.7 million and consolidated total cash flow from vessel operations(1) of $183.6 million in the fourth quarter of 2017. |
• | Since September 2017, Teekay LNG has taken delivery of six LNG carrier newbuildings, each of which immediately commenced its respective charter contract. |
• | In November 2017, Teekay Tankers completed its strategic merger with Tanker Investments Ltd. (TIL). |
• | Since September 2017, Teekay Offshore's Randgrid FSO, Pioneiro de Libra FPSO and the first two East Coast Canada shuttle tanker newbuildings commenced their respective charter contracts; took delivery of last two towage newbuildings; and completed upgrades on the Petrojarl I FPSO. |
• | Giving pro forma effect to Teekay Parent's January 2018 financings, Teekay Parent's total liquidity as at December 31, 2017 would have been approximately $538 million. |
Three Months Ended | Year Ended | ||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | |||||||
2017 | 2017 | 2016 | 2017 | 2016 | |||||||
(in thousands of U.S. dollars, except per share amounts) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||
TEEKAY CORPORATION CONSOLIDATED | |||||||||||
GAAP FINANCIAL COMPARISON | |||||||||||
Revenues | 326,686 | 499,728 | 552,203 | 1,880,332 | 2,328,569 | ||||||
Income (loss) from vessel operations | 66,655 | (189,846 | ) | 83,222 | 6,700 | 384,290 | |||||
Equity (loss) income | (971 | ) | 1,264 | 11,933 | (37,344 | ) | 85,639 | ||||
Net loss attributable to shareholders of Teekay | (13,727 | ) | (12,582 | ) | (2,661 | ) | (151,717 | ) | (123,182 | ) | |
Loss per share attributable to | |||||||||||
shareholders of Teekay | (0.16 | ) | (0.15 | ) | (0.03 | ) | (1.76 | ) | (1.62 | ) | |
NON-GAAP FINANCIAL COMPARISON | |||||||||||
Total Cash Flow from Vessel Operations(CFVO)(1)(2) | 183,586 | 238,060 | 290,486 | 951,118 | 1,287,003 | ||||||
Adjusted Net Loss attributable to | |||||||||||
shareholders of Teekay(1) | (9,500 | ) | (35,638 | ) | (18,554 | ) | (118,954 | ) | (43,562 | ) | |
Adjusted Loss per share attributable to | |||||||||||
shareholders of Teekay(1) | (0.11 | ) | (0.41 | ) | (0.22 | ) | (1.38 | ) | (0.55 | ) | |
TEEKAY PARENT | |||||||||||
NON-GAAP FINANCIAL COMPARISON | |||||||||||
Teekay Parent GPCO Cash Flow(1) | 2,669 | 7,162 | 3,752 | 17,838 | 24,593 | ||||||
Teekay Parent OPCO Cash Flow(1) | (3,390 | ) | (19,055 | ) | (8,030 | ) | (70,990 | ) | (54,389 | ) | |
Total Teekay Parent Free Cash Flow(1) | (721 | ) | (11,893 | ) | (4,278 | ) | (53,152 | ) | (29,796 | ) |
(2) | Total cash flow from vessel operations has reduced in the fourth quarter of 2017 primarily as a result of the deconsolidation of Teekay Offshore on September 25, 2017, which Teekay now accounts for using the equity method. |
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• | By dialing (800) 289-0438 or (647) 794-1830, if outside North America, and quoting conference ID code 7721785 |
• | By accessing the webcast, which will be available on Teekay’s website at www.teekay.com (the archive will remain on the website for a period of one year). |
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Three Months Ended | Year Ended | |||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||
2017 | 2017 | 2016 | 2017 | 2016 | ||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||
Revenues(1) | 326,686 | 499,728 | 552,203 | 1,880,332 | 2,328,569 | |||||
Voyage expenses | (24,438 | ) | (41,401 | ) | (41,237 | ) | (153,766 | ) | (138,339 | ) |
Vessel operating expenses | (131,650 | ) | (200,456 | ) | (199,352 | ) | (731,150 | ) | (825,024 | ) |
Time-charter hire expense | (22,787 | ) | (28,645 | ) | (38,418 | ) | (120,893 | ) | (150,145 | ) |
Depreciation and amortization | (63,116 | ) | (136,942 | ) | (144,901 | ) | (485,829 | ) | (571,825 | ) |
General and administrative expenses | (17,509 | ) | (27,662 | ) | (26,999 | ) | (106,150 | ) | (119,889 | ) |
Asset impairments(2) | — | (231,159 | ) | (2,146 | ) | (232,659 | ) | (45,796 | ) | |
Net loss on sale of vessels, equipment and other operating assets | (489 | ) | (20,426 | ) | (12,038 | ) | (38,084 | ) | (66,450 | ) |
Restructuring charges(1) | (42 | ) | (2,883 | ) | (3,890 | ) | (5,101 | ) | (26,811 | ) |
Income (loss) from vessel operations | 66,655 | (189,846 | ) | 83,222 | 6,700 | 384,290 | ||||
Interest expense | (49,163 | ) | (74,499 | ) | (69,018 | ) | (268,400 | ) | (282,966 | ) |
Interest income | 1,373 | 1,900 | 1,314 | 6,290 | 4,821 | |||||
Realized and unrealized gain (loss) on | ||||||||||
non-designated derivative instruments(3) | 4,319 | (6,128 | ) | 131,876 | (38,854 | ) | (35,091 | ) | ||
Equity (loss) income(4) | (971 | ) | 1,264 | 11,933 | (37,344 | ) | 85,639 | |||
Income tax expense | (465 | ) | (5,221 | ) | (22,102 | ) | (12,232 | ) | (24,468 | ) |
Foreign exchange (loss) gain | (3,575 | ) | (2,642 | ) | 13,007 | (26,463 | ) | (6,548 | ) | |
Loss on deconsolidation of Teekay Offshore(5) | (1,600 | ) | (103,188 | ) | — | (104,788 | ) | — | ||
Other income (loss) – net(6) | 1,188 | (4,705 | ) | (18,207 | ) | (3,981 | ) | (39,013 | ) | |
Net income (loss) | 17,761 | (383,065 | ) | 132,025 | (479,072 | ) | 86,664 | |||
Less: Net (income) loss attributable | ||||||||||
to non-controlling interests(7) | (31,488 | ) | 370,483 | (134,686 | ) | 327,355 | (209,846 | ) | ||
Net loss attributable to the shareholders of Teekay Corporation | ||||||||||
(13,727 | ) | (12,582 | ) | (2,661 | ) | (151,717 | ) | (123,182 | ) | |
Loss per common share of Teekay Corporation | ||||||||||
- Basic | (0.16 | ) | (0.15 | ) | (0.03 | ) | (1.76 | ) | (1.62 | ) |
- Diluted | (0.16 | ) | (0.15 | ) | (0.04 | ) | (1.76 | ) | (1.62 | ) |
Weighted-average number of common | ||||||||||
shares outstanding | ||||||||||
- Basic | 86,641,584 | 86,261,330 | 86,131,038 | 86,335,473 | 79,211,154 | |||||
- Diluted | 86,641,584 | 86,261,330 | 86,131,038 | 86,335,473 | 79,211,154 |
(1) | Restructuring charges for the year ended December 31, 2017 relate to severance costs from the termination of the charter contract for Teekay Offshore's Arendal Spirit UMS and the reorganization and realignment of resources of the Company's strategic development function and shore staff redundancies associated with the Company's FPSO business. The restructuring charges for the three months and year ended December 31, 2016 primarily relate to the costs related to the reorganization of the Company's FPSO business. The restructuring charges for the three months and year ended December 31, 2016 also include costs related to the closure of offices and seafarers' severance amounts, part of which were recovered from the customer and which recovery was included in revenues in the consolidated statements of income for the three months and year ended December 31, 2016. |
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(2) | Asset impairments for the year ended December 31, 2017 primarily relate to the impairments of two FPSO units in Teekay Parent, resulting from a revaluation of estimated future cash flows and carrying values of the asset group in response to the deconsolidation of Teekay Offshore on September 25, 2017. Asset impairments for the year ended December 31, 2017 also includes Teekay LNG's impairments of two Suezmax tankers, Teide Spirit and Toledo Spirit. Asset impairments of vessels and equipment for the three months and year ended December 31, 2016 relates to the $2.1 million write-down of one shuttle tanker owned by Teekay Offshore as a result of fewer opportunities to trade the vessel in the spot conventional tanker market. Asset impairments of vessels and equipment for the year ended December 31, 2016 also includes $43.7 million relating to the write-downs of two units for maintenance and safety (UMS) newbuildings as a result of the cancellation of the related construction contracts by Teekay Offshore's subsidiaries within Logitel Offshore Pte. Ltd. |
(3) | Realized and unrealized gains (losses) related to derivative instruments that are not designated as hedges for accounting purposes are included as a separate line item in the consolidated statements of income (loss). The realized (losses) gains relate to the amounts the Company actually paid to settle such derivative instruments and the unrealized gains (losses) relate to the change in fair value of such derivative instruments, as detailed in the table below: |
Three Months Ended | Year Ended | ||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | |||||||
2017 | 2017 | 2016 | 2017 | 2016 | |||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||
Realized (losses) gains relating to: | |||||||||||
Interest rate swaps | (5,725 | ) | (15,729 | ) | (19,512 | ) | (53,924 | ) | (87,320 | ) | |
Termination of interest rate swaps | — | — | — | (610 | ) | (8,140 | ) | ||||
Foreign currency forward contracts | 29 | 1,609 | (1,271 | ) | 667 | (11,186 | ) | ||||
Time-charter swaps | 160 | — | 932 | 1,106 | 2,154 | ||||||
Forward freight agreements | (234 | ) | 234 | — | 273 | — | |||||
(5,770 | ) | (13,886 | ) | (19,851 | ) | (52,488 | ) | (104,492 | ) | ||
Unrealized gains (losses) relating to: | |||||||||||
Interest rate swaps | 11,824 | 11,575 | 158,501 | 17,005 | 62,446 | ||||||
Foreign currency forward contracts | (457 | ) | 735 | (5,237 | ) | 3,925 | 15,833 | ||||
Stock purchase warrants | (1,385 | ) | (4,461 | ) | (859 | ) | (6,421 | ) | (9,753 | ) | |
Time-charter swap | (14 | ) | — | (678 | ) | (875 | ) | 875 | |||
Forward freight agreements | 121 | (91 | ) | — | — | — | |||||
10,089 | 7,758 | 151,727 | 13,634 | 69,401 | |||||||
Total realized and unrealized gains (losses) on non-designated derivative instruments | 4,319 | (6,128 | ) | 131,876 | (38,854 | ) | (35,091 | ) |
(4) | The Company’s proportionate share of items within equity (loss) income as identified in Appendix A of this release is detailed in the table below. By excluding these items from equity (loss) income as reflected in the consolidated statements of income (loss), the Company believes the resulting adjusted equity income is a normalized amount that can be used to evaluate the financial performance of the Company’s equity accounted investments. Adjusted equity income is a non-GAAP financial measure. |
Three Months Ended | Year Ended | ||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | |||||||
2017 | 2017 | 2016 | 2017 | 2016 | |||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||
Equity (loss) income | (971 | ) | 1,264 | 11,933 | (37,344 | ) | 85,639 | ||||
Proportionate share of unrealized gains on derivative instruments | (5,680 | ) | (3,804 | ) | (6,986 | ) | (7,706 | ) | (8,678 | ) | |
Other(i) | 9,203 | 6,963 | 7,510 | 66,922 | 5,764 | ||||||
Equity income adjusted for items in Appendix A | 2,552 | 4,423 | 12,457 | 21,872 | 82,725 |
(i) | Other for the three months and year ended December 31, 2017 includes the Company’s proportionate share of the reduction in carrying value of amounts contingently owing to Sevan Marine ASA in relation to the original financing for its accommodation business subsequently sold to Teekay Offshore, partially offset by the settlement of an unrecognized license fee of Sevan Marine ASA that was previously in dispute, the impairment of two vessels in Teekay LNG's Exmar LPG joint venture, and a gain to reflect the revaluation of Teekay Tankers' and Teekay Parent's equity accounted investment at the date of the TIL merger. Other for the year ended December 31, 2017 also includes the Company's proportionate share of realized losses on cross-currency swap and interest rate swap amendments in Teekay Offshore and foreign currency exchange gains and losses in the Company's equity accounted investments. Refer to footnote (2) of Appendix A included in this release for further details. Other for the year ended December 31, 2017 also includes the Company's proportionate share of the write-down of the Company's and Teekay Tankers' equity investments in TIL to their estimated fair value, based on the |
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(5) | In connection with Brookfield's acquisition of the 49 percent interest in TOO GP, Teekay and Brookfield entered into an amended limited liability company agreement whereby Brookfield obtained certain participatory rights in the management of TOO GP, which resulted in Teekay deconsolidating Teekay Offshore for accounting purposes on September 25, 2017 and recognizing a loss on deconsolidation for the three months and year ended December 31, 2017. Subsequent to the closing of the Brookfield transaction, Teekay retains significant influence over Teekay Offshore and accounts for its investment in Teekay Offshore using the equity method. |
(6) | Includes a gain of $1.3 million for the three months and year ended December 31, 2017 from the sale of the Company's cost-accounted investment in the dry bulk shipping company CVI Ocean Transportation II Inc., a company developed in partnership with CarVal Investors in 2014. A write-down of $19.0 million was previously recorded on this investment during the three months and year ended December 31, 2016. |
(7) | Subsequent to the formation of the Daughter Entities, Teekay sold certain vessels to the Daughter Entities. As the Daughter Entities were non-wholly-owned consolidated subsidiaries of Teekay at the date of the sales, all of the gain or loss on sales of these vessels was fully eliminated upon consolidation. Consequently, the portion of the gain or loss attributable to Teekay’s reduced interest in the vessels was deferred. The total unrecognized net deferred gain relating to the vessels previously sold from Teekay to Teekay Offshore was $349.6 million. Upon deconsolidation of Teekay Offshore, such amount was recognized in net (income) loss attributable to non-controlling interests for the year ended December 31, 2017. |
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As at December 31, | As at September 30, | As at December 31, | ||||
2017(1) | 2017(1) | 2016 | ||||
(unaudited) | (unaudited) | (unaudited) | ||||
ASSETS | ||||||
Cash and cash equivalents - Teekay Parent | 129,772 | 231,669 | 146,362 | |||
Cash and cash equivalents - Teekay LNG | 244,241 | 161,008 | 126,146 | |||
Cash and cash equivalents - Teekay Offshore | — | — | 227,378 | |||
Cash and cash equivalents - Teekay Tankers | 71,439 | 60,606 | 68,108 | |||
Other current assets | 307,525 | 339,277 | 389,727 | |||
Restricted cash - Teekay Parent | 7,257 | 4,820 | 4,562 | |||
Restricted cash - Teekay LNG | 95,194 | 93,012 | 117,027 | |||
Restricted cash - Teekay Offshore | — | — | 114,909 | |||
Restricted cash - Teekay Tankers | 4,271 | 4,317 | 750 | |||
Assets held for sale | 33,671 | 23,400 | 61,282 | |||
Vessels and equipment - Teekay Parent | 337,318 | 346,090 | 602,672 | |||
Vessels and equipment - Teekay LNG | 2,461,219 | 1,960,207 | 1,858,381 | |||
Vessels and equipment - Teekay Offshore | — | — | 4,084,803 | |||
Vessels and equipment - Teekay Tankers | 1,965,514 | 1,514,685 | 1,605,372 | |||
Advances on newbuilding contracts/conversions | 444,493 | 492,800 | 987,658 | |||
Investment in equity accounted investees(1) | 1,130,198 | 1,187,648 | 1,010,308 | |||
Investment in direct financing leases | 495,990 | 633,805 | 660,594 | |||
Other assets | 227,631 | 235,865 | 482,908 | |||
Intangible assets | 93,014 | 97,949 | 89,175 | |||
Goodwill | 43,690 | 43,690 | 176,630 | |||
Total Assets | 8,092,437 | 7,430,848 | 12,814,752 | |||
LIABILITIES AND EQUITY | ||||||
Accounts payable and accrued liabilities | 238,259 | 217,771 | 448,670 | |||
Advances from affiliates | 49,100 | 79,208 | 8,522 | |||
Current portion of long-term debt - Teekay Parent | 81,748 | 52,115 | 52,169 | |||
Current portion of long-term debt - Teekay LNG | 659,350 | 624,824 | 228,864 | |||
Current portion of long-term debt - Teekay Offshore | — | — | 586,892 | |||
Current portion of long-term debt - Teekay Tankers | 173,972 | 166,185 | 171,019 | |||
Long-term debt - Teekay Parent | 585,663 | 754,085 | 680,241 | |||
Long-term debt - Teekay LNG | 2,150,191 | 1,975,849 | 1,955,201 | |||
Long-term debt - Teekay Offshore | — | — | 2,596,002 | |||
Long-term debt - Teekay Tankers | 927,238 | 630,676 | 761,997 | |||
Derivative liabilities | 128,811 | 134,244 | 530,854 | |||
In process revenue contracts | 38,193 | 42,618 | 122,690 | |||
Other long-term liabilities | 124,756 | 131,115 | 333,236 | |||
Redeemable non-controlling interest | — | — | 249,102 | |||
Equity: | — | |||||
Non-controlling interests | 2,146,407 | 1,833,095 | 3,189,928 | |||
Shareholders of Teekay | 788,749 | 789,063 | 899,365 | |||
Total Liabilities and Equity | 8,092,437 | 7,430,848 | 12,814,752 | |||
Net debt - Teekay Parent(2) | 530,382 | 569,711 | 581,486 | |||
Net debt - Teekay LNG(2) | 2,470,106 | 2,346,653 | 1,940,892 | |||
Net debt - Teekay Offshore(2) | — | — | 2,840,607 | |||
Net debt - Teekay Tankers(2) | 1,025,500 | 731,938 | 864,158 |
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Year Ended | ||||
December 31, | ||||
2017 | 2016 | |||
(unaudited) | (unaudited) | |||
Cash and cash equivalents provided by (used for) | ||||
OPERATING ACTIVITIES | ||||
Net (loss) income | (479,072 | ) | 86,664 | |
Depreciation and amortization | 485,829 | 571,825 | ||
Amortization of in-process revenue contracts | (26,958 | ) | (28,109 | ) |
Unrealized gain on derivative instruments | (95,556 | ) | (145,116 | ) |
Loss on sale of vessels and equipment | 38,084 | 66,450 | ||
Asset impairments | 232,659 | 45,796 | ||
Equity loss (income), net of dividends received | 87,602 | (47,563 | ) | |
Income tax expense | 12,232 | 24,468 | ||
Unrealized foreign exchange loss and other | 98,469 | 53,999 | ||
Loss on deconsolidation of Teekay Offshore | 104,788 | — | ||
Change in operating assets and liabilities | 106,567 | 38,333 | ||
Expenditures for dry docking | (50,899 | ) | (45,964 | ) |
Net operating cash flow | 513,745 | 620,783 | ||
FINANCING ACTIVITIES | ||||
Proceeds from issuance of long-term debt, net of issuance costs | 1,007,010 | 2,075,014 | ||
Prepayments of long-term debt | (831,901 | ) | (1,872,573 | ) |
Scheduled repayments of long-term debt | (687,544 | ) | (967,146 | ) |
Proceeds from financing related to sales and leaseback of vessels | 809,935 | 355,306 | ||
Repayments of obligations related to capital leases | (46,090 | ) | (21,595 | ) |
Decrease (increase) in restricted cash | 104,142 | (49,079 | ) | |
Net proceeds from equity issuances of subsidiaries | 172,930 | 327,419 | ||
Net proceeds from equity issuances of Teekay Corporation | 25,636 | 105,462 | ||
Acquisition of shares in Teekay Tankers | (19,444 | ) | — | |
Distributions from subsidiaries to non-controlling interests | (103,150 | ) | (136,151 | ) |
Cash dividends paid | (18,977 | ) | (17,406 | ) |
Other financing activities | 5,337 | 87 | ||
Net financing cash flow | 417,884 | (200,662 | ) | |
INVESTING ACTIVITIES | ||||
Expenditures for vessels and equipment | (1,054,052 | ) | (648,326 | ) |
Proceeds from sale of vessels and equipment | 73,712 | 252,656 | ||
Investment in equity-accounted investees | (98,774 | ) | (61,885 | ) |
Advances to equity-accounted investees | (12,946 | ) | (96,823 | ) |
Cash of Tanker Investments Ltd. upon acquisition, net of transaction costs | 30,831 | — | ||
Cash of Teekay Offshore upon deconsolidation, net of proceeds received | (17,977 | ) | — | |
Direct financing lease payments received | 17,422 | 23,535 | ||
Other investing activities | 7,613 | 324 | ||
Net investing cash flow | (1,054,171 | ) | (530,519 | ) |
Decrease in cash and cash equivalents | (122,542 | ) | (110,398 | ) |
Cash and cash equivalents, beginning of the year | 567,994 | 678,392 | ||
Cash and cash equivalents, end of the year | 445,452 | 567,994 |
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Three Months Ended | Three Months Ended | Year Ended | |||||||||||
December 31, | September 30, | December 31, | |||||||||||
2017 | 2017 | 2017 | |||||||||||
(unaudited) | (unaudited) | (unaudited) | |||||||||||
$ Per | $ Per | $ Per | |||||||||||
$ | Share(1) | $ | Share(1) | $ | Share(1) | ||||||||
Net income (loss) – GAAP basis | 17,761 | (383,065 | ) | (479,072 | ) | ||||||||
Adjust for: Net (income) loss attributable to | |||||||||||||
non-controlling interests | (31,488 | ) | 370,483 | 327,355 | |||||||||
Net loss attributable to | |||||||||||||
shareholders of Teekay | (13,727 | ) | (0.16 | ) | (12,582 | ) | (0.15 | ) | (151,717 | ) | (1.76 | ) | |
Add (subtract) specific items affecting net | |||||||||||||
income (loss): | |||||||||||||
Unrealized gains from derivative instruments(2) | (15,785 | ) | (0.18 | ) | (11,555 | ) | (0.13 | ) | (20,594 | ) | (0.24 | ) | |
Foreign exchange losses (gains)(3) | 1,536 | 0.02 | (853 | ) | (0.01 | ) | 9,437 | 0.11 | |||||
Net (gain) loss on sale of vessels, equipment and other operating assets(4) | (1,935 | ) | (0.02 | ) | 20,426 | 0.23 | 35,660 | 0.41 | |||||
Asset impairments(4) | 5,500 | 0.06 | 231,159 | 2.68 | 286,730 | 3.33 | |||||||
Restructuring charges, net of recovery(5) | (52 | ) | — | 2,909 | 0.03 | 5,468 | 0.06 | ||||||
Realized loss on interest rate swap amendments | — | — | 5,347 | 0.06 | 5,347 | 0.06 | |||||||
Loss on deconsolidation of Teekay Offshore(6) | 1,600 | 0.02 | 103,188 | 1.20 | 104,788 | 1.21 | |||||||
Other(4)(7) | 5,694 | 0.07 | 8,371 | 0.10 | 31,955 | 0.37 | |||||||
Non-controlling interests’ share of items above(8) | 7,669 | 0.08 | (382,048 | ) | (4.42 | ) | (426,028 | ) | (4.93 | ) | |||
Total adjustments | 4,227 | 0.05 | (23,056 | ) | (0.26 | ) | 32,763 | 0.38 | |||||
Adjusted net loss attributable to | |||||||||||||
shareholders of Teekay | (9,500 | ) | (0.11 | ) | (35,638 | ) | (0.41 | ) | (118,954 | ) | (1.38 | ) |
(1) | Basic per share amounts. |
(2) | Reflects the unrealized gains relating to the change in the mark-to-market value of derivative instruments that are not designated as hedges for accounting purposes, including those investments included in the Company's proportionate share of equity (loss) income from joint ventures, and hedge ineffectiveness from derivative instruments designated as hedges for accounting purposes. |
(3) | Foreign currency exchange losses (gains) primarily relate to the Company’s debt denominated in Euros and Norwegian Kroner (NOK) and unrealized losses on cross currency swaps used to economically hedge the principal and interest on NOK bonds. Nearly all of the Company’s foreign currency exchange gains and losses are unrealized. |
(4) | Refer to footnote (4) of the summary consolidated statements of income (loss) included in this release for further details. |
(5) | Refer to footnote (1) of the summary consolidated statements of income (loss) included in this release for further details. |
(6) | Refer to footnote (5) of the summary consolidated statements of income (loss) included in this release for further details. |
(7) | Other for the three months and year ended December 31, 2017 includes a gain from the sale of one of the Company's cost-accounted investments (refer to footnote (6) of the summary consolidated statements of income (loss) included in this release for further details), the deferred tax expense in Teekay LNG's Teekay Tangguh joint venture, the reversal of the fair value differential from the TIL merger associated with loans refinanced in Teekay Tankers in December 2017, early termination fees paid by Teekay Parent on the contract terminations for two in-chartered vessels, and costs related to projects during their pre-operational phases. Other for the year ended December 31, 2017 also includes the write-off of deferred revenues and operating expenses as a result of the termination of the Arendal Spirit UMS charter contract in late-April 2017, the settlement of a contingent liability in Teekay Offshore, an increase in the Piranema Spirit FPSO rate reduction contingency in Teekay Offshore, costs, including those associated with interest rate swaps, related to projects during their pre-operational |
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(8) | Items affecting net loss include items from the Company’s consolidated non-wholly-owned subsidiaries. The specific items affecting net loss are analyzed to determine whether any of the amounts originated from a consolidated non-wholly-owned subsidiary. Each amount that originates from a consolidated non-wholly-owned subsidiary is multiplied by the non-controlling interests’ percentage share in this subsidiary to determine the non-controlling interests’ share of the amount. The amount identified as “Non-controlling interests’ share of items above” in the table above is the cumulative amount of the non-controlling interests’ proportionate share of items listed in the table. “Non-controlling interests’ share of items above” for the year ended December 31, 2017 and the quarter ended September 30, 2017 also includes the recognition of previously deferred gains of $349.6 million. See footnote (7) of the summary consolidated statements of income (loss) included in this release for further details. |
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Three Months Ended | Year Ended | ||||||||
December 31, | December 31, | ||||||||
2016 | 2016 | ||||||||
(unaudited) | (unaudited) | ||||||||
$ Per | $ Per | ||||||||
$ | Share(1) | $ | Share(1) | ||||||
Net income – GAAP basis | 132,025 | 86,664 | |||||||
Adjust for: Net income attributable to non-controlling interests | (134,686 | ) | (209,846 | ) | |||||
Net loss attributable to shareholders of Teekay | (2,661 | ) | (0.03 | ) | (123,182 | ) | (1.62 | ) | |
Add (subtract) specific items affecting net loss: | |||||||||
Unrealized gains from derivative instruments(2) | (159,454 | ) | (1.85 | ) | (78,761 | ) | (1.00 | ) | |
Foreign exchange gains(3) | (19,127 | ) | (0.22 | ) | (15,035 | ) | (0.19 | ) | |
Net loss on sale of vessels, equipment, and other assets(4) | 16,898 | 0.20 | 68,078 | 0.86 | |||||
Asset impairments(4)(5) | 23,508 | 0.27 | 67,722 | 0.85 | |||||
Restructuring charges, net of recovery(6) | 3,595 | 0.04 | 10,152 | 0.13 | |||||
Adjustments to deferred taxes(7) | 15,973 | 0.19 | 15,973 | 0.20 | |||||
Other(8) | 5,244 | 0.06 | 51,415 | 0.65 | |||||
Non-controlling interests’ share of items above(9) | 97,470 | 1.12 | (39,924 | ) | (0.50 | ) | |||
Earnings per share adjustment relating to Teekay Offshore's Series C Preferred Unit conversion(10) | — | — | — | 0.07 | |||||
Total adjustments | (15,893 | ) | (0.19 | ) | 79,620 | 1.07 | |||
Adjusted net loss attributable to | |||||||||
shareholders of Teekay | (18,554 | ) | (0.22 | ) | (43,562 | ) | (0.55 | ) |
(1) | Basic per share amounts. |
(2) | Reflects the unrealized gains relating to the change in the mark-to-market value of derivative instruments that are not designated as hedges for accounting purposes, including those investments included in the Company's proportionate share of equity income from joint ventures and hedge ineffectiveness from derivative instruments designated as hedges for accounting purposes. |
(3) | Foreign currency exchange gains primarily relate to the Company’s debt denominated in Euros and NOK, the unrealized losses on cross currency swaps used to economically hedge the principal and interest on NOK bonds and the Company's share of unrealized foreign exchange losses in Sevan Marine ASA. Nearly all of the Company’s foreign currency exchange gains and losses are unrealized. |
(4) | Refer to footnote (4) of the summary consolidated statements of income (loss) included in this release for further details. |
(5) | Refer to footnote (6) of the summary consolidated statements of income (loss) included in this release for further details. |
(6) | Refer to footnote (1) of the summary consolidated statements of income (loss) included in this release for further details. |
(7) | Adjustments to deferred taxes relates to decreases in the valuation allowances related to certain Australian entities and increases in deferred income tax assets for one of Teekay Offshore's Norwegian tax structures for the three months and year ended December 31, 2016. |
(8) | Other for the three months and year ended December 31, 2016 includes a one-time compensation cost associated with the retirement of Teekay Corporation's Chief Executive Officer. Other for the year ended December 31, 2016 primarily relates to potential damages accrued relating to the cancellation of the construction contracts for two UMS newbuildings, the write-off of deferred financing costs relating to a debt refinancing and termination fees associated with the partial termination of a loan, gains associated with the extinguishment of a contingent liability resulting from the UMS contract cancellations, depreciation expense as a result of the change in the useful life estimate of the shuttle component of Teekay Offshore’s shuttle tankers from 25 years to 20 years effective January 1, 2016, loss on the termination of an interest rate swaps and costs, including those associated with interest rate swaps, related to projects during their pre-operational phases. |
(9) | Items affecting net loss include items from the Company’s consolidated non-wholly-owned subsidiaries. The specific items affecting net loss are analyzed to determine whether any of the amounts originated from a consolidated non-wholly-owned subsidiary. Each amount that originates from a consolidated non-wholly-owned subsidiary is multiplied by the non-controlling interests’ percentage share in this subsidiary to arrive at the non-controlling interests’ share of the amount. The amount identified as “Non-controlling interests’ share of items above” in the table above is the cumulative amount of the non-controlling interests’ proportionate share of items listed in the table. “Non-controlling |
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(10) | Relates to the Company's portion of the inducement premium and exchange contribution charged to retained earnings by Teekay Offshore when converting its outstanding Series C Preferred Units to common units and Series C-1 Preferred Units. Teekay Offshore repurchased and cancelled all of its outstanding Series C-1 Preferred Units as part of the Brookfield Transaction. |
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Teekay | Teekay | Teekay | Consolidation | Total | |||||||
LNG | Tankers | Parent | Adjustments(1) | ||||||||
Revenues | 126,307 | 105,229 | 107,683 | (12,533 | ) | 326,686 | |||||
Voyage expenses | (4,303 | ) | (20,443 | ) | (343 | ) | 651 | (24,438 | ) | ||
Vessel operating expenses | (27,026 | ) | (43,440 | ) | (60,480 | ) | (704 | ) | (131,650 | ) | |
Time-charter hire expense | — | (3,202 | ) | (29,093 | ) | 9,508 | (22,787 | ) | |||
Depreciation and amortization | (27,651 | ) | (26,829 | ) | (8,636 | ) | — | (63,116 | ) | ||
General and administrative expenses | (4,949 | ) | (8,004 | ) | (7,634 | ) | 3,078 | (17,509 | ) | ||
Net loss on sale of vessels, equipment and | |||||||||||
other operating assets | — | (489 | ) | — | — | (489 | ) | ||||
Restructuring charges | — | — | (42 | ) | — | (42 | ) | ||||
Income from vessel operations | 62,378 | 2,822 | 1,455 | — | 66,655 | ||||||
Interest expense | (23,333 | ) | (9,613 | ) | (16,217 | ) | — | (49,163 | ) | ||
Interest income | 880 | 163 | 330 | — | 1,373 | ||||||
Realized and unrealized gain (loss) | |||||||||||
on derivative instruments | 3,066 | 2,028 | (775 | ) | — | 4,319 | |||||
Equity income (loss) | 2,992 | 1,804 | (5,767 | ) | — | (971 | ) | ||||
Equity in earnings of subsidiaries(2) | — | — | 10,923 | (10,923 | ) | — | |||||
Income tax recovery (expense) | 319 | 966 | (1,750 | ) | — | (465 | ) | ||||
Foreign exchange loss | (2,436 | ) | (72 | ) | (1,067 | ) | — | (3,575 | ) | ||
Loss on deconsolidation of Teekay Offshore | (1,600 | ) | (1,600 | ) | |||||||
Other income - net | 424 | 23 | 741 | — | 1,188 | ||||||
Net income (loss) | 44,290 | (1,879 | ) | (13,727 | ) | (10,923 | ) | 17,761 | |||
Less: Net income attributable | |||||||||||
to non-controlling interests(3) | (4,413 | ) | — | — | (27,075 | ) | (31,488 | ) | |||
Net income (loss) attributable to shareholders/ | |||||||||||
unitholders of publicly-listed entities | 39,877 | (1,879 | ) | (13,727 | ) | (37,998 | ) | (13,727 | ) |
(1) | Consolidation Adjustments column includes adjustments which eliminate transactions between subsidiaries (a) Teekay LNG and Teekay Tankers and (b) Teekay Parent. |
(2) | Teekay Corporation’s proportionate share of the net earnings of its publicly-traded subsidiaries. Refer to footnote (7) of the summary consolidated statements of income (loss) included in this release for further details. |
(3) | Net income attributable to non-controlling interests in the Teekay LNG column represents the joint venture partners’ share of the net income or loss of its respective consolidated joint ventures. Net income attributable to non-controlling interest in the Consolidation Adjustments column represents the public’s share of the net income of Teekay’s publicly-traded consolidated subsidiaries. |
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Teekay | Teekay | Teekay | Teekay | Consolidation | Total | ||||||||
Offshore(1) | LNG | Tankers(2) | Parent | Adjustments(2)(3) | |||||||||
Revenues | 796,711 | 432,676 | 431,178 | 303,566 | (83,799 | ) | 1,880,332 | ||||||
Voyage expenses | (68,802 | ) | (8,202 | ) | (77,368 | ) | (1,693 | ) | 2,299 | (153,766 | ) | ||
Vessel operating expenses | (249,805 | ) | (103,139 | ) | (175,389 | ) | (202,985 | ) | 168 | (731,150 | ) | ||
Time-charter hire expense | (60,592 | ) | — | (30,661 | ) | (98,654 | ) | 69,014 | (120,893 | ) | |||
Depreciation and amortization | (219,406 | ) | (105,545 | ) | (100,481 | ) | (60,397 | ) | — | (485,829 | ) | ||
General and administrative expenses | (46,399 | ) | (16,541 | ) | (32,879 | ) | (22,649 | ) | 12,318 | (106,150 | ) | ||
Asset impairments | (1,500 | ) | (25,500 | ) | — | (205,659 | ) | — | (232,659 | ) | |||
Net loss on sale of vessels, equipment and other operating assets | — | (25,100 | ) | (12,984 | ) | — | — | (38,084 | ) | ||||
Restructuring charges | (3,147 | ) | — | — | (1,954 | ) | — | (5,101 | ) | ||||
Income (loss) from vessel operations | 147,060 | 148,649 | 1,416 | (290,425 | ) | — | 6,700 | ||||||
Interest expense | (108,993 | ) | (80,937 | ) | (31,294 | ) | (67,629 | ) | 20,453 | (268,400 | ) | ||
Interest income | 1,416 | 2,915 | 907 | 21,505 | (20,453 | ) | 6,290 | ||||||
Realized and unrealized (loss) gain | |||||||||||||
on derivative instruments | (28,935 | ) | (5,309 | ) | 1,319 | (5,929 | ) | — | (38,854 | ) | |||
Equity income (loss) | 12,028 | 9,789 | (25,370 | ) | (33,791 | ) | — | (37,344 | ) | ||||
Equity in earnings of subsidiaries(4) | — | — | — | 321,781 | (321,781 | ) | — | ||||||
Income tax expense | (3,939 | ) | (824 | ) | (5,331 | ) | (2,138 | ) | — | (12,232 | ) | ||
Foreign exchange (loss) gain | (10,149 | ) | (26,933 | ) | 80 | 10,539 | — | (26,463 | ) | ||||
Loss on deconsolidation of Teekay Offshore | — | — | — | (105,587 | ) | 799 | (104,788 | ) | |||||
Other (loss) income - net | (5,749 | ) | 1,561 | 250 | (43 | ) | — | (3,981 | ) | ||||
Net income (loss) | 2,739 | 48,911 | (58,023 | ) | (151,717 | ) | (320,982 | ) | (479,072 | ) | |||
Less: Net income attributable | |||||||||||||
to non-controlling interests(5) | (8,262 | ) | (14,946 | ) | — | — | 350,563 | 327,355 | |||||
Net (loss) income attributable to | |||||||||||||
shareholders/unitholders | |||||||||||||
of publicly-listed entities | (5,523 | ) | 33,965 | (58,023 | ) | (151,717 | ) | 29,581 | (151,717 | ) |
(1) | Teekay Offshore was consolidated by the Company for the period up to September 25, 2017 and equity accounted for thereafter. |
(2) | On May 31, 2017, Teekay Tankers acquired from Teekay Parent, the remaining 50% interest in Teekay Tanker Operations Ltd. (TTOL). As a result of the acquisition, the financial information for Teekay Tankers prior to the date that Teekay Tankers acquired interests in TTOL is retroactively adjusted to include 100% of the results of TTOL during the periods they were under common control of Teekay and had begun operations. |
(3) | Consolidation Adjustments column includes adjustments which eliminate transactions between subsidiaries (a) Teekay Offshore for the period up to September 25, 2017, and Teekay LNG and Teekay Tankers and (b) Teekay Parent. |
(4) | Teekay Corporation’s proportionate share of the net earnings of its publicly-traded subsidiaries. Refer to footnote (7) of the summary consolidated statements of income (loss) included in this release for further details. |
(5) | Net income attributable to non-controlling interests in the Teekay LNG and Teekay Offshore columns represents the joint venture partners’ share of the net income or loss of their respective consolidated joint ventures. Net income attributable to non-controlling interest in the Consolidation Adjustments column represents the public’s share of the net income of Teekay’s publicly-traded consolidated subsidiaries. |
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Teekay | ||||||||||
Conventional | Corporate | Parent | ||||||||
Tankers | FPSOs | Other(1)(2) | G&A | Total | ||||||
Revenues(2) | 100 | 65,625 | 41,958 | — | 107,683 | |||||
Voyage expenses | (83 | ) | (168 | ) | (92 | ) | — | (343 | ) | |
Vessel operating expenses(2) | (604 | ) | (33,485 | ) | (26,391 | ) | — | (60,480 | ) | |
Time-charter hire expense | (4,279 | ) | (11,532 | ) | (13,282 | ) | — | (29,093 | ) | |
Depreciation and amortization | — | (8,601 | ) | (35 | ) | — | (8,636 | ) | ||
General and administrative expenses | — | (5,611 | ) | 1,966 | (3,989 | ) | (7,634 | ) | ||
Restructuring charges | — | — | (42 | ) | — | (42 | ) | |||
(Loss) income from vessel operations | (4,866 | ) | 6,228 | 4,082 | (3,989 | ) | 1,455 | |||
Reconciliation of (loss) income from vessel operations to cash flow from vessel operations | ||||||||||
(Loss) income from vessel operations | (4,866 | ) | 6,228 | 4,082 | (3,989 | ) | 1,455 | |||
Depreciation and amortization | — | 8,601 | 35 | — | 8,636 | |||||
Amortization of in-process revenue | — | |||||||||
contracts and other | — | (1,773 | ) | 776 | — | (997 | ) | |||
Realized gains from the settlements | ||||||||||
of non-designated derivative instruments | — | 29 | — | — | 29 | |||||
CFVO - Consolidated(3) | (4,866 | ) | 13,085 | 4,893 | (3,989 | ) | 9,123 | |||
CFVO - Equity Investments(4) | 479 | (1,453 | ) | 17,820 | — | 16,846 | ||||
CFVO - Total | (4,387 | ) | 11,632 | 22,713 | (3,989 | ) | 25,969 |
(1) | Includes the results of two chartered-in LNG carriers owned by Teekay LNG and two chartered-in FSO units owned by Teekay Offshore. |
(2) | Revenues and vessel operating expenses include $17.8 million and $16.1 million, respectively, related to intercompany transactions between Teekay Offshore and Teekay Parent, which as a result of the Deconsolidation of Teekay Offshore are no longer eliminated upon consolidation. The intercompany transactions relate to services for ship management, crew training, commercial, technical, strategic, business development and administrative management services provided by Teekay Parent to Teekay Offshore. |
(3) | In addition to the CFVO generated by its directly owned and chartered-in assets, Teekay Parent also receives cash dividends and distributions from its publicly-traded subsidiaries. For the three months ended December 31, 2017, Teekay Parent received cash distributions and dividends from these subsidiaries totaling $6.7 million. The distributions and dividends received by Teekay Parent include, among others, those made with respect to its general partner interests in Teekay Offshore and Teekay LNG. Please refer to Appendix D this release for further details. |
(4) | Please see Appendix E to this release for a reconciliation of this non-GAAP financial measure as used in this release to equity income of equity accounted vessels, the most directly comparable GAAP financial measure. |
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Three Months Ended | Year Ended | ||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | |||||||
2017 | 2017 | 2016 | 2017 | 2016 | |||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||
TEEKAY PARENT GPCO CASH FLOW | |||||||||||
Daughter Entities distributions | |||||||||||
to Teekay Parent(1) | |||||||||||
Limited Partner interests(2) | |||||||||||
Teekay LNG | 3,529 | 3,529 | 3,529 | 14,116 | 14,116 | ||||||
Teekay Offshore | 566 | 566 | 4,465 | 6,200 | 17,176 | ||||||
GP interests | |||||||||||
Teekay LNG | 228 | 228 | 227 | 912 | 908 | ||||||
Teekay Offshore | 16 | 16 | 331 | 399 | 1,201 | ||||||
Other Dividends | |||||||||||
Teekay Tankers(2)(3) | 2,319 | 1,690 | 1,276 | 6,975 | 8,546 | ||||||
Teekay Offshore(4) | — | 637 | 683 | 2,003 | 1,366 | ||||||
Total Daughter Entity Distributions | 6,658 | 6,666 | 10,511 | 30,605 | 43,313 | ||||||
Less: | |||||||||||
Corporate general and | |||||||||||
administrative expenses(5) | (3,989 | ) | 496 | (6,759 | ) | (12,767 | ) | (18,720 | ) | ||
Total Parent GPCO Cash Flow | 2,669 | 7,162 | 3,752 | 17,838 | 24,593 | ||||||
TEEKAY PARENT OPCO CASH FLOW | |||||||||||
Teekay Parent cash flow from | |||||||||||
vessel operations(6) | |||||||||||
Conventional Tankers(7) | (4,866 | ) | (3,077 | ) | (2,372 | ) | (13,390 | ) | (1,764 | ) | |
FPSOs(8) | 13,085 | (1,901 | ) | 6,522 | 3,265 | 12,794 | |||||
Other(9)(10) | 4,893 | (1,005 | ) | 134 | (6,149 | ) | (8,106 | ) | |||
Total(11) | 13,112 | (5,983 | ) | 4,284 | (16,274 | ) | 2,924 | ||||
Less: Net interest expense(12) | (16,502 | ) | (13,072 | ) | (12,314 | ) | (54,716 | ) | (57,313 | ) | |
Teekay Parent OPCO Cash Flow | (3,390 | ) | (19,055 | ) | (8,030 | ) | (70,990 | ) | (54,389 | ) | |
TOTAL TEEKAY PARENT FREE | |||||||||||
CASH FLOW | (721 | ) | (11,893 | ) | (4,278 | ) | (53,152 | ) | (29,796 | ) | |
Weighted-average number of | |||||||||||
common shares - Basic | 86,641,584 | 86,261,330 | 86,131,038 | 86,335,473 | 79,211,154 |
(1) | Daughter Entities dividends and distributions for a given quarter consists of the amount of dividends and distributions (including payments in kind) relating to such quarter but received by Teekay Parent in the following quarter. The limited partner and general partner distributions received from Teekay Offshore for the quarters ended September 30, 2017, June 30, 2017, March 31, 2017, December 31, 2016, and September 30, 2016 were paid-in-kind in the form of new Teekay Offshore common units. |
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(2) | Common share/unit dividend/distribution cash flows to Teekay Parent are based on Teekay Parent’s ownership on the ex-dividend date for the respective publicly-traded subsidiary and equity accounted investment in Teekay Offshore for the periods as follows: |
Three Months Ended | Year Ended | |||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||
2017 | 2017 | 2016 | 2017 | 2016 | ||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||
Teekay LNG | ||||||||||||||||
Distribution per common unit | $ | 0.14 | $ | 0.14 | $ | 0.14 | $ | 0.56 | $ | 0.56 | ||||||
Common units owned by | ||||||||||||||||
Teekay Parent | 25,208,274 | 25,208,274 | 25,208,274 | 25,208,274 | 25,208,274 | |||||||||||
Total distribution | $ | 3,529,158 | $ | 3,529,158 | $ | 3,529,158 | $ | 14,116,633 | $ | 14,116,633 | ||||||
Teekay Offshore | ||||||||||||||||
Distribution per common unit | $ | 0.01 | $ | 0.01 | $ | 0.11 | $ | 0.14 | $ | 0.44 | ||||||
Common units owned by | ||||||||||||||||
Teekay Parent | 56,587,484 | 56,587,484 | 40,589,218 | 44,285,041 | 39,037,938 | |||||||||||
Total distribution | $ | 565,875 | $ | 565,875 | $ | 4,464,814 | $ | 6,199,906 | $ | 17,176,693 | ||||||
Teekay Tankers | ||||||||||||||||
Dividend per share | $ | 0.03 | $ | 0.03 | $ | 0.03 | $ | 0.12 | $ | 0.21 | ||||||
Shares owned by Teekay Parent(3) | 77,298,441 | 56,317,627 | 42,542,403 | 58,119,024 | 40,695,113 | |||||||||||
Total dividend | $ | 2,318,953 | $ | 1,689,529 | $ | 1,276,272 | $ | 6,974,283 | $ | 8,545,974 |
(3) | Includes Class A and Class B shareholdings. Teekay Tankers' current dividend policy is to pay out 30 percent to 50 percent of its quarterly adjusted net income (as defined) with a minimum quarterly dividend of $0.03 per share. |
(4) | Includes distributions from Teekay Parent's interest in Teekay Offshore's 10.5% Series D Preferred Units acquired in June 2016. The distributions received for the quarters ended June 30, 2017, March 31, 2017, December 31, 2016 and September 30, 2016 were paid-in-kind in the form of new Teekay Offshore common units. All outstanding Series D Preferred Units were repurchased by Teekay Offshore in September 2017 as part of the Brookfield Transaction. |
(5) | Includes recoveries from Teekay Offshore legal expenses for the three months ended September 30, 2017. Includes a one-time compensation cost associated with the retirement of Teekay Corporation's Chief Executive Officer for the three months ended December 31, 2016. |
(6) | Please refer to Appendices C and E for additional financial information on Teekay Parent’s cash flow from vessel operations. |
(7) | Includes early termination fees totaling $1.6 million paid to the owners in the three months ended December 31, 2017 related to the termination of two bareboat contracts. Includes an early termination fee paid to Teekay Offshore of $4.0 million for the year ended December 31, 2016 related to the early termination of the in-charter contract on the Kilimanjaro Spirit conventional tanker. |
(8) | Includes recoveries from Teekay Offshore for business development costs for the three months ended September 30, 2017. |
(9) | Includes $2.2 million for the three months ended December 31, 2016, and $1.3 million and $5.1 million, for the years ended December 31, 2017 and 2016, respectively, relating to 50 percent of the CFVO from TTOL. Teekay Parent owned 50 percent of TTOL for the period up to May 31, 2017, when Teekay Tankers purchased the remaining 50 percent of TTOL from Teekay Parent. |
(10) | Includes $1.6 million of fees earned from managing vessel transactions for Tanker Investments Ltd. for the year ended December 31, 2016. |
(11) | Excludes corporate general and administrative expenses relating to Teekay Parent GPCO Cash Flow. |
(12) | Please see Appendix E to this release for a description of this measure and a reconciliation of this non-GAAP financial measure as used in this release to interest expense net of interest income, the most directly comparable GAAP financial measure. |
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Three Months Ended | |||||||
December 31, | September 30, | December 31, | |||||
2017 | 2017 | 2016 | |||||
(unaudited) | (unaudited) | (unaudited) | |||||
Income (loss) from vessel operations | 66,655 | (189,846 | ) | 83,222 | |||
Depreciation and amortization | 63,116 | 136,942 | 144,901 | ||||
Amortization of in-process revenue contracts and other | (3,655 | ) | (6,737 | ) | (5,794 | ) | |
Realized (losses) gains from the settlements of non-designated | |||||||
derivative instruments | (45 | ) | 1,843 | (104 | ) | ||
Asset impairments | — | 231,159 | 2,146 | ||||
Net loss on sale of vessels, equipment and other operating assets | 489 | 20,426 | 12,038 | ||||
Cash flow from time-charter contracts, net of revenue accounted for | |||||||
as direct finance leases | 2,142 | 3,071 | 6,866 | ||||
CFVO - Consolidated | 128,702 | 196,858 | 243,275 | ||||
CFVO - Equity Investments (see Appendix E) | 54,884 | 41,202 | 47,211 | ||||
CFVO - Total | 183,586 | 238,060 | 290,486 |
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Year Ended | |||||
December 31, | December 31, | ||||
2017 | 2016 | ||||
(unaudited) | (unaudited) | ||||
Income from vessel operations | 6,700 | 384,290 | |||
Depreciation and amortization | 485,829 | 571,825 | |||
Amortization of in process revenue contracts and other | (22,348 | ) | (24,195 | ) | |
Realized gains (losses) from the settlements of non-designated | |||||
derivative instruments | 2,047 | (8,646 | ) | ||
Asset impairments | 232,659 | 45,796 | |||
Loss on sale of vessels, equipment and other operating assets | 38,084 | 66,450 | |||
Termination of Arendal Spirit UMS charter contract | 8,888 | — | |||
Cash flow from time-charter contracts, net of revenue accounted for | |||||
as direct finance leases | 18,737 | 28,348 | |||
CFVO - Consolidated | 770,596 | 1,063,868 | |||
CFVO - Equity Investments (see Appendix E) | 180,522 | 223,135 | |||
CFVO - Total | 951,118 | 1,287,003 |
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Three Months Ended | |||||||||||||
December 31, 2017 | September 30, 2017 | December 31, 2016 | |||||||||||
(unaudited) | (unaudited) | (unaudited) | |||||||||||
At | Company's | At | Company's | At | Company's | ||||||||
100% | Portion(1) | 100% | Portion(1) | 100% | Portion(2) | ||||||||
Revenues | 443,685 | 105,986 | 196,281 | 78,912 | 190,201 | 78,531 | |||||||
Vessel and other operating expenses | (230,168 | ) | (54,027 | ) | (101,063 | ) | (40,279 | ) | (80,609 | ) | (33,454 | ) | |
Depreciation and amortization | (125,368 | ) | (28,329 | ) | (48,045 | ) | (19,425 | ) | (42,155 | ) | (18,437 | ) | |
Asset impairments | (10,852 | ) | (5,479 | ) | — | — | — | — | |||||
Loss on sale of vessels | — | — | — | — | (9,721 | ) | (4,861 | ) | |||||
Income from vessel operations of | |||||||||||||
equity accounted vessels | 77,297 | 18,151 | 47,173 | 19,208 | 57,716 | 21,779 | |||||||
Interest expense | (73,187 | ) | (18,909 | ) | (36,568 | ) | (14,878 | ) | (30,743 | ) | (12,910 | ) | |
Realized and unrealized gain (loss) on | — | — | |||||||||||
derivative instruments | 9,494 | 2,563 | (21,538 | ) | (3,652 | ) | 15,708 | 5,255 | |||||
Write-down of loans receivable | — | — | — | — | — | (2,387 | ) | ||||||
Other - net | (12,156 | ) | (2,776 | ) | (1,716 | ) | 586 | 115 | 196 | ||||
Equity income (loss) of equity accounted vessels | 1,448 | (971 | ) | (12,649 | ) | 1,264 | 42,796 | 11,933 | |||||
Income from vessel operations of | |||||||||||||
equity accounted vessels | 77,297 | 18,151 | 47,173 | 19,208 | 57,716 | 21,779 | |||||||
Depreciation and amortization | 125,368 | 28,329 | 48,045 | 19,425 | 42,155 | 18,437 | |||||||
Asset impairments | 10,852 | 5,479 | — | — | — | — | |||||||
Loss on sale of vessels | — | — | 9,721 | 4,861 | |||||||||
Realized gains from the settlement | |||||||||||||
of non-designated foreign currency | |||||||||||||
forward contracts | 490 | 69 | — | — | — | — | |||||||
Cash flow from time-charter contracts, | |||||||||||||
net of revenue accounted for as | |||||||||||||
direct finance leases | 11,914 | 3,984 | 10,017 | 3,636 | 9,476 | 3,438 | |||||||
Amortization of in-process revenue | |||||||||||||
contracts and other | (5,991 | ) | (1,128 | ) | (2,065 | ) | (1,067 | ) | (2,541 | ) | (1,304 | ) | |
Cash flow from vessel operations | |||||||||||||
of equity accounted vessels(3) | 219,930 | 54,884 | 103,170 | 41,202 | 116,527 | 47,211 |
(1) | The Company’s proportionate share of its equity accounted vessels and other investments, including its investment in Teekay Offshore, ranges from 14 percent to 52 percent. |
(2) | On May 31, 2017, Teekay Tankers acquired from Teekay Parent the remaining 50% interest in TTOL. As a result of the acquisition, the financial information for Teekay Tankers prior to the date that Teekay Tankers acquired interests in TTOL are retroactively adjusted to include the results of TTOL during the periods they were under common control of Teekay and had begun operations. As a result, TTOL's results are no longer included in this table. |
(3) | CFVO from equity accounted vessels represents the Company’s proportionate share of CFVO from its equity accounted vessels and other investments. |
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Year Ended | |||||||||
December 31, 2017 | December 31, 2016 | ||||||||
(unaudited) | (unaudited) | ||||||||
At | Company's | At | Company's | ||||||
100% | Portion(1) | 100% | Portion(2) | ||||||
Revenues | 997,718 | 333,011 | 886,794 | 367,947 | |||||
Vessel and other operating expenses | (495,796 | ) | (162,542 | ) | (366,935 | ) | (152,561 | ) | |
Depreciation and amortization | (254,007 | ) | (82,706 | ) | (160,833 | ) | (69,702 | ) | |
Asset impairments | (10,852 | ) | (5,479 | ) | (1,351 | ) | (677 | ) | |
Loss on sale of vessels | — | — | (8,493 | ) | (4,627 | ) | |||
Income from vessel operations of | |||||||||
equity accounted vessels | 237,063 | 82,284 | 349,182 | 140,380 | |||||
Interest expense | (167,388 | ) | (57,956 | ) | (109,610 | ) | (45,962 | ) | |
Realized and unrealized loss on | |||||||||
derivative instruments | (34,358 | ) | (8,199 | ) | (10,157 | ) | (3,296 | ) | |
Write-down of other assets(3) | — | (48,571 | ) | — | (2,387 | ) | |||
Other - net | (18,794 | ) | (4,902 | ) | (7,415 | ) | (3,096 | ) | |
Equity income (loss) of equity accounted vessels | 16,523 | (37,344 | ) | 222,000 | 85,639 | ||||
Income from vessel operations of | |||||||||
equity accounted vessels | 237,063 | 82,284 | 349,182 | 140,380 | |||||
Depreciation and amortization | 254,007 | 82,706 | 160,833 | 69,702 | |||||
Loss on sale of vessels | 8,493 | 4,627 | |||||||
Asset impairments | 10,852 | 5,479 | 1,351 | 677 | |||||
Realized gains from the settlement of | |||||||||
non-designated foreign currency | |||||||||
forward contracts | 490 | 69 | — | — | |||||
Cash flow from time-charter contracts, | |||||||||
net of revenue accounted for as direct | |||||||||
finance leases | 40,883 | 14,402 | 36,463 | 13,231 | |||||
Amortization of in-process revenue | |||||||||
contracts and other | (13,138 | ) | (4,418 | ) | (10,697 | ) | (5,482 | ) | |
Cash flow from vessel operations | |||||||||
of equity accounted vessels(4) | 530,157 | 180,522 | 545,625 | 223,135 |
(1) | The Company’s proportionate share of its equity accounted vessels and other investments, including its investment in Teekay Offshore, ranges from 14 percent to 52 percent. |
(2) | On May 31, 2017, Teekay Tankers acquired from Teekay Parent, the remaining 50% interest in TTOL. As a result of the acquisition, the financial information for Teekay Tankers prior to the date that Teekay Tankers acquired interests in TTOL are retroactively adjusted to include the results of TTOL during the periods they were under common control of Teekay and had begun operations. As a result, TTOL's results are no longer included in this table. |
(3) | Refer to footnote (4) of the summary consolidated statements of income (loss) included in this release for further details. |
(4) | CFVO from equity accounted vessels represents the Company’s proportionate share of CFVO from its equity accounted vessels and other investments. |
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Three Months Ended September 30, 2017 | |||||||||||||||
(unaudited) | |||||||||||||||
Teekay | |||||||||||||||
Conventional | Corporate | Parent | |||||||||||||
Tankers | FPSOs | Other | G&A | Total | |||||||||||
Teekay Parent (loss) income from | |||||||||||||||
vessel operations | (3,077 | ) | (223,957 | ) | (280 | ) | 496 | (226,818 | ) | ||||||
Depreciation and amortization | — | 17,320 | (79 | ) | — | 17,241 | |||||||||
Asset impairments | — | 205,659 | — | — | 205,659 | ||||||||||
Amortization of in-process revenue | |||||||||||||||
contracts and other | — | (1,483 | ) | (646 | ) | — | (2,129 | ) | |||||||
Realized gains from the settlements | |||||||||||||||
of non-designated foreign currency | |||||||||||||||
derivative instruments | — | 560 | — | — | 560 | ||||||||||
Cash flow from vessel | |||||||||||||||
operations - Teekay Parent | (3,077 | ) | (1,901 | ) | (1,005 | ) | 496 | (5,487 | ) |
Three Months Ended December 31, 2016 | |||||||||||||||
(unaudited) | |||||||||||||||
Teekay | |||||||||||||||
Conventional | Corporate | Parent | |||||||||||||
Tankers | FPSOs | Other | G&A | Total | |||||||||||
Teekay Parent loss from | |||||||||||||||
vessel operations | (2,323 | ) | (9,151 | ) | (3,297 | ) | (6,759 | ) | (21,530 | ) | |||||
Depreciation and amortization | — | 17,546 | (112 | ) | — | 17,434 | |||||||||
(Gain) loss on sale of vessels and equipment | (49 | ) | 110 | — | — | 61 | |||||||||
Amortization of in-process | |||||||||||||||
revenue contracts and other | — | (1,483 | ) | 1,274 | — | (209 | ) | ||||||||
Realized losses from the settlements | |||||||||||||||
of non-designated foreign currency | |||||||||||||||
derivative instruments | — | (500 | ) | — | — | (500 | ) | ||||||||
Cash flow from vessel | |||||||||||||||
operations - Teekay Parent | (2,372 | ) | 6,522 | (2,135 | ) | (6,759 | ) | (4,744 | ) |
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Year Ended December 31, 2017 | |||||||||||||||
(unaudited) | |||||||||||||||
Teekay | |||||||||||||||
Conventional | Corporate | Parent | |||||||||||||
Tankers | FPSOs | Other | G&A | Total | |||||||||||
Teekay Parent loss from | |||||||||||||||
vessel operations | (13,390 | ) | (256,758 | ) | (7,510 | ) | (12,767 | ) | (290,425 | ) | |||||
Depreciation and amortization | — | 60,560 | (163 | ) | — | 60,397 | |||||||||
Asset impairments | — | 205,659 | — | — | 205,659 | ||||||||||
Amortization of in-process | |||||||||||||||
revenue contracts and other | — | (6,223 | ) | 250 | — | (5,973 | ) | ||||||||
Realized losses from the settlements | |||||||||||||||
of non-designated foreign currency | |||||||||||||||
derivative instruments | — | 27 | — | — | 27 | ||||||||||
Cash flow from vessel | |||||||||||||||
operations - Teekay Parent | (13,390 | ) | 3,265 | (7,423 | ) | (12,767 | ) | (30,315 | ) |
Year Ended December 31, 2016 | |||||||||||||||
(unaudited) | |||||||||||||||
Teekay | |||||||||||||||
Conventional | Corporate | Parent | |||||||||||||
Tankers | FPSOs | Other | G&A | Total | |||||||||||
Teekay Parent loss from | |||||||||||||||
vessel operations | (15,967 | ) | (48,310 | ) | (13,499 | ) | (18,720 | ) | (96,496 | ) | |||||
Depreciation and amortization | 1,717 | 70,855 | (449 | ) | — | 72,123 | |||||||||
Asset impairments | 12,535 | — | — | — | 12,535 | ||||||||||
(Gain) loss on sale of vessels | |||||||||||||||
and equipment | (49 | ) | 110 | — | — | 61 | |||||||||
Amortization of in-process | |||||||||||||||
revenue contracts and other | — | (5,932 | ) | 654 | — | (5,278 | ) | ||||||||
Realized losses from the settlements | |||||||||||||||
of non-designated foreign currency | |||||||||||||||
derivative instruments | — | (3,929 | ) | — | — | (3,929 | ) | ||||||||
Cash flow from vessel | |||||||||||||||
operations - Teekay Parent | (1,764 | ) | 12,794 | (13,294 | ) | (18,720 | ) | (20,984 | ) |
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Three Months Ended | Year Ended | |||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||
2017 | 2017 | 2016 | 2017 | 2016 | ||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||
Interest expense | (49,163 | ) | (74,499 | ) | (69,018 | ) | (268,400 | ) | (282,966 | ) | ||
Interest income | 1,373 | 1,900 | 1,314 | 6,290 | 4,821 | |||||||
Interest expense net of interest income consolidated | (47,790 | ) | (72,599 | ) | (67,704 | ) | (262,110 | ) | (278,145 | ) | ||
Less: Non-Teekay Parent interest | ||||||||||||
expense net of interest income | ||||||||||||
and adjustment | (31,903 | ) | (60,201 | ) | (56,227 | ) | (210,163 | ) | (224,735 | ) | ||
Interest expense net of interest income(1) | ||||||||||||
- Teekay Parent | (15,887 | ) | (12,398 | ) | (11,477 | ) | (51,947 | ) | (53,410 | ) | ||
Add: Teekay Parent realized losses | ||||||||||||
on interest rate swaps | (615 | ) | (674 | ) | (837 | ) | (2,769 | ) | (3,903 | ) | ||
Net interest expense - Teekay Parent | (16,502 | ) | (13,072 | ) | (12,314 | ) | (54,716 | ) | (57,313 | ) |
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