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Tidewater Reports Results for the Three-Months Ended March 31, 2019
May 6, 2019 at 4:16 PM EDT

HOUSTON--(BUSINESS WIRE)--May 6, 2019-- Tidewater Inc. (NYSE:TDW) announced today revenue for the three-months ended March 31, 2019, of $122.1 million and a net loss for the same period of $21.7 million (or $0.58 per common share). Excluding certain costs outlined below, net loss for the three-months ended March 31, 2019 was $18.0 million (or $0.49 per common share).

John T. Rynd, Tidewater’s President and Chief Executive Officer, commented, “March 31 marked the first full quarter with Tidewater and GulfMark operating as a combined company and I’m pleased that the benefits of this merger are immediately evident. With a larger vessel fleet, revenues were up 33% as compared to the same period in 2018 and up 11% from the quarter ended December 31, 2018. Demonstrating the value of leveraging Tidewater’s existing global platform and our team’s progress towards meeting our merger synergy targets, G&A continued its downward trend during the quarter, reaching the same level as the quarter ended March 31, 2018. We continue to make progress in improving our shore base cost structure, and we are now positioning ourselves to exit 2019 with an annual G&A run rate of $87 million.

Capital discipline, both working capital discipline and capital expenditure discipline, is key to exceeding the return on capital objectives we have set for ourselves. The entire team is focused on obtaining these goals and our long-term compensation incentives are driven by return on capital targets. Discipline on the capital tied up in our fleet in lay-up is also part of that focus and considerable progress has been made towards meeting our ambitious goal of selling or recycling 40 additional vessels by the end of the year, with 16 vessel dispositions already completed in the first quarter and more in process.

There are strong indications that E&P spending offshore will increase this year, driving steadily improving drilling activity and the availability of OSVs in several key markets within which we have a large presence, such as the North Sea and West Africa, has shown signs of tightening as we enter the seasonally more active summer season. With strong OSV sector leadership positions in almost every market in the world, Tidewater is best-positioned to benefit from the upside as the market continues improves through 2019.”

Included in the $21.7 million ($0.58 per common share) net loss for the three months ended March 31, 2019 were the following costs were general and administrative expenses for severance and similar expenses related to integrating Tidewater and GulfMark operations of $3.7 million ($0.10 per common share).

Common shares, New Creditor Warrants, GulfMark Creditor Warrants, and the sum of common shares, New Creditor Warrants and GulfMark Creditor Warrants outstanding at March 31, 2019 were 37,381,954, 2,070,463, 2,046,795 and 41,499,212, respectively. New Creditor Warrants and GulfMark Creditor Warrants are each exercisable to acquire one common share at strike prices of $0.001 and $0.01, respectively.

Tidewater will hold a conference call to discuss results for the three months ended March 31, 2019 on Tuesday, May 7, 2019 at 10:00 a.m. Central Time. Investors and interested parties may listen to the teleconference via telephone by calling 1-888-771-4371 if calling from the U.S. or Canada (1-847-585-4405 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. Central Time on May 7, 2019, and will continue until 11:59 p.m. Central Time on May 9, 2019. To hear the replay, call 1-888-843-7419 (1-630-652-3042 if calling from outside the U.S.). The conference call ID number is 48556943.

A simultaneous webcast of the conference call will be available online at the Tidewater Inc. website, www.tdw.com. The online replay will be available until June 7, 2019.

The conference call will contain forward-looking statements in addition to statements of historical fact. The actual achievement of any forecasted results or the unfolding of future economic or business developments in a way anticipated or projected by the company involves numerous risks and uncertainties that may cause the company’s actual performance to be materially different from that stated or implied in the forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the oilfield service industry and other factors discussed within the “Risk Factors” section of Tidewater’s most recent Forms 10-Q and 10-K.

Tidewater owns and operates the largest fleet of Offshore Support Vessels in the industry, with over 60 years of experience supporting offshore energy exploration and production activities worldwide.

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

Financial information is displayed on the next page.

 
TIDEWATER INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)

 
  Three Months   Three Months
Ended Ended
    March 31, 2019     March 31, 2018  
Revenues:  
Vessel revenues $ 119,662 87,494
Other operating revenues     2,487       3,999  
Total revenues     122,149       91,493  
Costs and expenses:
Vessel operating costs 82,203 61,364
Costs of other operating revenues 764 2,474
General and administrative (A) 27,140 23,565
Depreciation and amortization 22,932 12,017
Gain on asset dispositions, net (1,270 ) (1,919 )
Long-lived asset impairments           6,186  
Total operating costs and expenses     131,769       103,687  
Operating loss (9,620 ) (12,194 )
Other income (expense):
Foreign exchange loss (508 ) (348 )
Equity in net losses of unconsolidated companies (62 ) (15,439 )
Interest income and other, net 2,470 (128 )
Interest and other debt costs, net     (7,736 )     (7,599 )
Total other income (expense)     (5,836 )     (23,514 )
Loss before income taxes (15,456 ) (35,708 )
Income tax expense     5,830       3,321  
Net loss $ (21,286 ) (39,029 )
Less: Net income attributable to noncontrolling interests     445       143  
Net loss attributable to Tidewater Inc.   $ (21,731 )     (39,172 )
Basic loss per common share     (0.58 )     (1.67 )
Diluted loss per common share     (0.58 )     (1.67 )
Weighted average common shares outstanding 37,179 23,425
Dilutive effect of stock options and restricted stock            
Adjusted weighted average common shares     37,179       23,425  
Total shares outstanding including warrants     March 31, 2019     March 31, 2018
Common shares outstanding     37,382     23,988
New Creditor Warrants (strike price $0.001 per common share) 2,070 6,022
GulfMark Creditor Warrants (strike price $0.01 per common share)     2,047    
Total     41,499     30,010

Note (A):  General and administrative expenses for the three months ended March 31, 2019 and March 31, 2018, included stock-based compensation of $5.6 million and $3.0 million, respectively. In addition, general and administrative costs for the three months ended March 31, 2019 include $3.7 million of severance and similar costs related to integrating Tidewater and GulfMark operations subsequent to the Merger Date.

 
TIDEWATER INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and par value data)

 
  March 31,   December 31,
ASSETS   2019   2018
Current assets:  
Cash and cash equivalents $ 391,060 371,791
Restricted cash 6,975 25,953
Trade and other receivables, net 112,853 111,266
Due from affiliates 119,049 132,951
Marine operating supplies 29,337 29,505
Other current assets     14,844       11,836  
Total current assets     674,118       683,302  
Investments in, at equity, and advances to unconsolidated companies 774 1,039
Properties and equipment, net 1,065,297 1,089,857
Deferred drydocking and survey costs 30,602 22,215
Other assets     38,507       31,326  
Total assets   $ 1,809,298       1,827,739  
 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 29,739 31,939
Accrued costs and expenses 56,025 61,784
Due to affiliates 40,245 34,972
Current portion of long-term debt 9,957 8,568
Other current liabilities     20,115       21,092  
Total current liabilities     156,081       158,355  
Long-term debt 427,436 430,436
Other liabilities 98,096 94,025
 
Contingencies
 
Equity:
Common stock of $0.001 par value, 125,000,000 shares authorized,

37,381,954 and 36,978,280 shares issued and outstanding

at March 31, 2019 and December 31, 2018, respectively

37 37
Additional paid-in capital 1,356,436 1,352,388
Accumulated deficit (232,514 ) (210,783 )
Accumulated other comprehensive income     2,194       2,194  
Total stockholders’ equity 1,126,153 1,143,836
Noncontrolling interests     1,532       1,087  
Total equity 1,127,685 1,144,923
Total liabilities and equity   $ 1,809,298       1,827,739  
 
TIDEWATER INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands)

 
  Three Months Ended   Three Months Ended
    March 31, 2019   March 31, 2018
Net loss $ (21,286 )   (39,029 )
Other comprehensive income:
Unrealized losses on available for sale

securities, net of tax of $61

          (299 )
Total comprehensive loss   $ (21,286 )     (39,328 )
 
TIDEWATER INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

 
  Three Months Ended   Three Months Ended
    March 31, 2019   March 31, 2018
Operating activities:  
Net loss $ (21,286 ) (39,029 )
Adjustments to reconcile net loss to net cash provided by (used in) operating

activities:

Depreciation and amortization 19,034 11,380
Amortization of deferred drydocking and survey costs 3,898 638
Amortization of debt premium and discounts (505 ) (443 )
Provision for deferred income taxes 169
Gain on asset dispositions, net (1,270 ) (1,919 )
Long-lived asset impairments 6,186
Changes in investments in, at equity, and advances

to unconsolidated companies

265 15,713
Compensation expense - stock-based 5,627 2,956
Changes in assets and liabilities, net:
Trade and other receivables (2,204 ) (1,662 )
Changes in due to/from affiliates, net 19,175 1,083
Accounts payable (2,200 ) 7,284
Accrued costs and expenses (5,626 ) 845
Cash paid for deferred drydocking and survey costs (12,285 ) (8,860 )
Other, net     (5,949 )     (156 )
Net cash used in operating activities     (3,157 )     (5,984 )
Cash flows from investing activities:
Proceeds from sales of assets 9,651 9,492
Additions to properties and equipment     (3,116 )     (1,677 )
Net cash provided by investing activities     6,535       7,815  
Cash flows from financing activities:
Principal payment on long-term debt (1,509 ) (1,471 )
Payments to General Unsecured Creditors (8,377 )
Taxes on share-based awards (1,578 )
Other           1  
Net cash used in financing activities     (3,087 )     (9,847 )
Net change in cash, cash equivalents and restricted cash 291 (8,016 )
Cash, cash equivalents and restricted cash at beginning of period     397,744       453,335  
Cash, cash equivalents and restricted cash at end of period   $ 398,035       445,319  
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest, net of amounts capitalized $ 8,319 8,152
Income taxes   $ 4,415       6,429  
 
TIDEWATER INC.
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(In thousands)

 
      Accumulated    
Additional other Non
Common paid-in Accumulated comprehensive controlling
(In thousands)   stock   capital   deficit     income (loss)     interest   Total
Balance at December 31, 2018 $ 37   1,352,388   (210,783 ) 2,194 1,087 1,144,923
Total comprehensive loss (21,731 ) 445 (21,286 )
Issuance of common stock from exercise of warrants 1 1
Amortization/cancellation of restricted stock units         4,047               4,047  
Balance at March 31, 2019   $ 37     1,356,436     (232,514 )   2,194     1,532   1,127,685  
                                     
Balance at December 31, 2017 $ 22 1,059,120 (39,266 ) (147 ) 2,215 1,021,944
Total comprehensive loss (39,172 ) (299 ) 143 (39,328 )
Stock option expense (98 ) (98 )
Issuance of common stock 2 2
Amortization of restricted stock units         2,961               2,961  
Balance at March 31, 2018     24     1,061,983     (78,438 )   (446 )   2,358   985,481  

The company’s vessel revenues and vessel operating costs and the related percentage of total vessel revenues, were as follows:

  Quarter Ended   Quarter Ended
March 31, 2019     March 31, 2018
(In thousands)         %           %  
Vessel revenues:      
Americas $ 35,279 29 % 26,081 30 %
Middle East/Asia Pacific 20,456 17 % 18,388 21 %
Europe/Mediterranean Sea 28,558 24 % 9,623 11 %
West Africa     35,369   30 %   33,402       38 %
Total vessel revenues   $ 119,662   100 %   87,494       100 %
Vessel operating costs:
Crew costs $ 48,145 40 % 34,224 39 %
Repair and maintenance 9,701 8 % 7,704 9 %
Insurance and loss reserves 2,178 2 % (1,071 ) (1 %)
Fuel, lube and supplies 9,345 8 % 9,012 10 %
Other     12,834   11 %   11,495       13 %
Total vessel operating costs     82,203   69 %   61,364       70 %
Vessel operating margin (B)     37,459   31 %   26,130       30 %

Note (B):  Vessel operating margin can be recalculated by adjusting vessel operating profit (loss) for general and administrative expenses and depreciation and amortization expenses.

The company’s operating loss and other components of loss before income taxes and its related percentage of total revenues, were as follows:

  Quarter Ended   Quarter Ended
March 31, 2019   March 31, 2018
(In thousands)           %           %  
Vessel operating profit (loss):    
Americas $ (1,030 ) (1 %) 4,911 5 %
Middle East/Asia Pacific (1,162 ) (1 %) (2,253 ) (2 %)
Europe/Mediterranean Sea (3,317 ) (3 %) (3,554 ) (4 %)
West Africa 8,115 7 % (1,753 ) (2 %)
Other operating profit     1,704     1 %   1,506     2 %
4,310 3 % (1,143 ) (1 %)
Corporate expenses (C) (15,200 ) (12 %) (6,784 ) (7 %)
Gain (loss) on asset dispositions, net 1,270 1 % 1,919 2 %
Long-lived asset impairments             (6,186 )   (7 %)
Operating loss     (9,620 )   (8 %)   (12,194 )   (13 %)

Note (C):  The company incurred integration costs related to the combination with GulfMark during the three months ended March 31, 2019 of $3.7 million. General and administrative expenses for the quarter ended March 31, 2019 and March 31, 2018, included stock-based compensation of $5.6 million and $3.0 million, respectively.

 
TIDEWATER INC.
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) – QUARTERLY DATA

(Unaudited)

(In thousands, except share and per share data)

 
  Three Months Ended
 
March 31,   December 31,   September 30,   June 30,   March 31,
      2019     2018     2018     2018     2018
Revenues:
Vessel revenues $ 119,662 108,527 97,011 104,174 87,494
Other operating revenues     2,487     1,707     2,181     1,427     3,999  
Total revenues     122,149     110,234     99,192     105,601     91,493  
Costs and expenses:
Vessel operating costs 82,203 74,967 65,237 68,012 61,364
Costs of other operating revenues 764 733 1,681 642 2,474
General and administrative (D) 27,140 36,487 25,546 24,425 23,565
Depreciation and amortization 22,932 20,101 13,390 12,785 12,017
Gain on asset dispositions, net (1,270 ) (8,938 ) 1,571 (1,338 ) (1,919 )
Impairment of due from affiliate 20,083
Asset impairments         36,878     16,853     1,215     6,186  
Total operating costs and expenses     131,769     180,311     124,278     105,741     103,687  
Operating loss (9,620 ) (70,077 ) (25,086 ) (140 ) (12,194 )
Other income (expense):
Foreign exchange gain (loss) (508 ) 1,455 1 (1,002 ) (348 )
Equity in net earnings (losses) of unconsolidated companies (62 ) (3,871 ) 56 390 (15,439 )
Interest income and other 2,470 5,799 2,709 2,914 (128 )
Loss on debt extinguishment (8,119 )
Interest and other debt costs     (7,736 )   (7,708 )   (7,585 )   (7,547 )   (7,599 )
Total other income (expense)     (5,836 )   (12,444 )   (4,819 )   (5,245 )   (23,514 )
Loss before income taxes (15,456 ) (82,521 ) (28,905 ) (5,385 ) (35,708 )
Income tax expense     5,830     7,856     1,278     5,797     3,321  
Net loss $ (21,286 ) (90,377 ) (31,183 ) (11,182 ) (39,029 )
Less: Net income (loss) attributable to noncontrolling interests     445     132     (287 )   (242 )   143  
Net loss attributable to Tidewater Inc.   $ (21,731 )   (90,509 )   (30,896 )   (10,940 )   (39,172 )
Basic loss per common share   $ (0.58 )   (2.83 )   (1.16 )   (0.44 )   (1.67 )
Diluted loss per common share   $ (0.58 )   (2.83 )   (1.16 )   (0.44 )   (1.67 )
Weighted average common shares outstanding (E) 37,178,580 31,974,802 26,614,507 24,654,220 23,424,943
Dilutive effect of stock options and restricted stock                      
Adjusted weighted average common shares     37,178,580     31,974,802     26,614,507     24,654,220     23,424,943  
                                 
Vessel operating margin   $ 37,459     33,560     31,774     36,162     26,130  
 

Note (D):  Restructuring and merger-related items:

Professional services costs included in general and administrative expenses related to the business combination with GulfMark $ 88 4,465 3,036 1,547
Integration related costs related to the business combination with GulfMark     3,651                  
Total   $ 3,739     4,465     3,036     1,547      
 
Note (E):                                

Shares issuable upon the exercise of New Creditor Warrants held by U.S. citizens included in weighted average shares outstanding

        2,547     300,646         108,044  
 
Total shares outstanding including warrants                                
Common shares outstanding 37,381,954 36,978,280 26,815,991 26,085,274 23,988,075
New Creditor Warrants

(strike price $0.001 per common share)

2,070,463 2,220,857 3,512,416 3,924,441 6,021,696
GulfMark Creditor Warrants

(strike price $0.01 per common share)

    2,046,795     2,189,709              
Total     41,499,212     41,388,846     30,328,407     30,009,715     30,009,771  
 
TIDEWATER INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

 
  March 31,   December 31,   September 30,   June 30,   March 31,
ASSETS     2019     2018     2018     2018     2018
Current assets:
Cash and cash equivalents $ 391,060 371,791 461,088 459,286 442,472
Restricted cash 6,975 25,953 7,466 5,213 2,847
Trade and other receivables, net (F) 112,853 111,266 88,013 96,630 115,754
Due from affiliates 119,049 132,951 174,349 197,059 207,919
Marine operating supplies 29,337 29,505 27,591 28,930 28,896
Other current assets     14,844     11,836     9,880     10,213     18,181  
Total current assets     674,118     683,302     768,387     797,331     816,069  
Investments in, at equity, and advances to unconsolidated companies 774 1,039 1,129 1,335 13,503
Net properties and equipment 1,065,297 1,089,857 790,055 817,140 827,678
Deferred drydocking and survey costs 30,602 22,215 16,053 14,372 11,430
Other assets     38,507     31,326     28,700     26,779     30,783  
Total assets   $ 1,809,298     1,827,739     1,604,324     1,656,957     1,699,463  
 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable (F) $ 29,739 31,939 30,571 30,561 45,781
Accrued costs and expenses 56,025 61,784 46,060 49,312 56,408
Due to affiliates 40,245 34,972 48,064 62,353 78,135
Current portion of long-term debt 9,957 8,568 7,671 6,290 5,215
Other current liabilities     20,115     21,092     21,341     20,605     11,678  
Total current liabilities     156,081     158,355     153,707     169,121     197,217  
Long-term debt 427,436 430,436 435,301 438,559 442,729
Other liabilities and deferred credits 98,096 94,025 71,408 73,751 74,036
 
Contingencies
 
Equity:
Common stock 37 37 27 26 24
Additional paid-in capital 1,356,436 1,352,388 1,063,603 1,064,039 1,061,983
Accumulated deficit (232,514 ) (210,783 ) (120,274 ) (89,378 ) (78,438 )
Accumulated other comprehensive income (loss)     2,194     2,194     (403 )   (403 )   (446 )
Total stockholders’ equity 1,126,153 1,143,836 942,953 974,284 983,123
Noncontrolling interests     1,532     1,087     955     1,242     2,358  
Total equity 1,127,685 1,144,923 943,908 975,526 985,481
Total liabilities and equity   $ 1,809,298     1,827,739     1,604,324     1,656,957     1,699,463  
 
                                 
Supplemental Information
Due from related parties, net of due to related parties:
Sonatide (Angola) $ 62,591 79,829 102,512 106,084 129,784
DTDW (Nigeria)     16,213     18,150     23,773     28,622     25,184  
Total   $ 78,804     97,979     126,285     134,706     154,968  

Note (F):  Included in Trade and other receivables, net, for the quarter ended March 31, 2018 is $37,761 of amounts due from our DTDW (Nigeria) joint venture.  Included in accounts payable for the quarter ended March 31, 2018 is $12,577 of amounts due to our DTDW (Nigeria) joint venture.

 
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
 
  Three Months Ended
March 31,   December 31, September 30,   June 30,   March 31,
      2019   2018   2018   2018   2018

VESSEL REVENUE BY VESSEL CLASS

(In thousands):

 

Americas fleet:

Deepwater $ 25,214 21,412 19,513 22,661 16,205
Towing-supply 8,576 8,283 6,417 7,560 6,846
Other     1,489   2,118   2,109   2,380   3,030
Total $ 35,279 31,813 28,039 32,601 26,081

Middle East/Asia Pacific fleet:

Deepwater $ 10,502 8,705 7,607 9,603 9,564
Towing-supply 9,954 10,959 12,156 12,783 8,824
Other     -   (190 ) 164   20  
Total $ 20,456 19,474 19,927 22,406 18,388

Europe/Mediterranean Sea fleet:

Deepwater $ 27,577 19,876 11,643 12,596 9,020
Towing-supply     981   841   923   761   603
Total $ 28,558 20,717 12,566 13,357 9,623

West Africa fleet:

Deepwater $ 15,949 15,287 15,101 14,314 13,938
Towing-supply 15,184 16,807 17,805 17,321 16,139
Other     4,236   4,429   3,573   4,175   3,325
Total $ 35,369 36,523 36,479 35,810 33,402

Worldwide fleet:

Deepwater $

79,242

65,278 53,864 59,174 48,727
Towing-supply

34,695

36,890 37,301 38,425 32,412
Other     5,725   6,359   5,846   6,575   6,355
Total   $ 119,662   108,527   97,011   104,174   87,494
 
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
 
  Three Months Ended
March 31,   December 31,   September 30,   June 30,   March 31,
    2019     2018     2018     2018     2018

AVERAGE NUMBER OF VESSELS (G):

 

Americas fleet:

Deepwater 37 35 26 25 26
Towing-supply 27 20 15 15 15
Other   7     7     6     6     6  
Total 71 62 47 46 47
Stacked vessels   (32 )   (27 )   (20 )   (19 )   (20 )
Active vessels   39     35     27     27     27  

Middle East/Asia Pacific fleet:

Deepwater 24 20 17 18 19
Towing-supply 27 28 32 35 37
Other                    
Total 51 48 49 53 56
Stacked vessels   (10 )   (11 )   (9 )   (12 )   (15 )
Active vessels   41     37     40     41     41  

Europe/Mediterranean Sea fleet:

Deepwater 45 31 18 18 17
Towing-supply 3 4 4 4 4
Other                    
Total 48 35 22 22 21
Stacked vessels   (14 )   (10 )   (4 )   (4 )   (5 )
Active vessels   34     25     18     18     16  

West Africa fleet:

Deepwater 30 28 27 26 27
Towing-supply 31 31 31 31 35
Other   22     23     25     27     31  
Total 83 82 83 84 93
Stacked vessels   (29 )   (29 )   (28 )   (29 )   (39 )
Active vessels   54     53     55     55     54  

Worldwide fleet:

Deepwater 136 114 88 87 89
Towing-supply 88 83 82 85 91
Other   29     30     31     33     37  
Total 253 227 201 205 217
Stacked vessels   (85 )   (77 )   (61 )   (64 )   (79 )
Active vessels   168     150     140     141     138  
 
Total active 168 150 140 141 138
Total stacked 85 77 61 64 79
Total joint venture and other vessels   4     5     7     8     8  
Total   257     232     208     213     225  

Note (G):  Included in total owned or chartered vessels at March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018, were 71, 92, 62, 66 and 70 vessels, respectively, which were stacked by the company. These vessels were considered to be in service and are included in the calculation of our total fleet utilization statistics. Included in total joint venture and other at March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018, were 1, 2, 2, 5 and 4 vessels, respectively, which were stacked by the company.

 
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
 
  Three Months Ended
March 31,   December 31,   September 30,   June 30,   March 31,
    2019   2018   2018   2018   2018

AVAILABLE DAYS - TOTAL FLEET:

 

Americas fleet:

Deepwater 3,332 3,271 2,392 2,275 2,309
Towing-supply 2,426 1,806 1,422 1,399 1,350
Other   619   644   552   546   540
Total 6,377 5,721 4,366 4,220 4,199

Middle East/Asia Pacific fleet:

Deepwater 2,160 1,840 1,534 1,611 1,738
Towing-supply 2,457 2,588 2,950 3,203 3,348
Other         3  
Total 4,617 4,428 4,484 4,817 5,086

Europe/Mediterranean Sea fleet:

Deepwater 4,040 2,806 1,649 1,638 1,527
Towing-supply   294   368   368   364   360
Total 4,334 3,174 2,017 2,002 1,887

West Africa fleet:

Deepwater 2,668 2,606 2,491 2,393 2,470
Towing-supply 2,790 2,852 2,852 2,821 3,123
Other   1,980   2,122   2,297   2,417   2,745
Total 7,438 7,580 7,640 7,631 8,338

Worldwide fleet:

Deepwater 12,200 10,523 8,066 7,917 8,044
Towing-supply 7,967 7,614 7,592 7,787 8,181
Other   2,599   2,766   2,849   2,966   3,285
Total   22,766   20,903   18,507   18,670   19,510
 
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
 
  Three Months Ended
March 31,   December 31,   September 30,   June 30,   March 31,
    2019   2018   2018   2018   2018

OUT-OF-SERVICE - STACKED DAYS:

 

Americas fleet:

Deepwater 992 1,288 858 819 898
Towing-supply 1,467 932 736 728 720
Other   380   296   276   182   180
Total 2,839 2,516 1,870 1,729 1,798

Middle East/Asia Pacific fleet:

Deepwater 617 572 338 364 478
Towing-supply 270 391 508 780 873
Other          
Total 887 963 846 1,144 1,351

Europe/Mediterranean Sea fleet:

Deepwater 1,122 736 170 91 167
Towing-supply   114   184   184   243   270
Total 1,236 920 354 334 437

West Africa fleet:

Deepwater 630 625 552 590 744
Towing-supply 1,486 1,361 1,196 1,183 1,463
Other   540   681   799   878   1,305
Total 2,656 2,667 2,547 2,652 3,512

Worldwide fleet:

Deepwater 3,361 3,221 1,918 1,864 2,287
Towing-supply 3,337 2,868 2,624 2,934 3,326
Other   920   977   1,075   1,060   1,485
Total   7,618   7,066   5,617   5,859   7,098
 
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
 
  Three Months Ended
March 31,   December 31,   September 30,   June 30,   March 31,
    2019   2018   2018   2018   2018

AVAILABLE DAYS - ACTIVE FLEET:  (H)

 

Americas fleet:

Deepwater 2,340 1,983 1,534 1,456 1,411
Towing-supply 959 874 686 671 630
Other   239   348   276   364   360
Total 3,538 3,205 2,496 2,491 2,401

Middle East/Asia Pacific fleet:

Deepwater 1,543 1,268 1,196 1,247 1,260
Towing-supply 2,187 2,197 2,442 2,423 2,475
Other         3  
Total 3,730 3,465 3,638 3,673 3,735

Europe/Mediterranean Sea fleet:

Deepwater 2,918 2,070 1,479 1,547 1,360
Towing-supply   180   184   184   121   90
Total 3,098 2,254 1,663 1,668 1,450

West Africa fleet:

Deepwater 2,038 1,981 1,939 1,803 1,726
Towing-supply 1,304 1,491 1,656 1,638 1,660
Other   1,440   1,441   1,498   1,539   1,440
Total 4,782 4,913 5,093 4,979 4,826

Worldwide fleet:

Deepwater 8,839 7,302 6,148 6,053 5,757
Towing-supply 4,630 4,746 4,968 4,853 4,855
Other   1,679   1,789   1,774   1,906   1,800
Total   15,148   13,837   12,890   12,811   12,412

Note (H):  Available Days - Active Fleet equals Available Days - Total Fleet less Out-Of-Service - Stacked Days.

 
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
 
  Three Months Ended
March 31,   December 31,   September 30,   June 30,   March 31,
    2019     2018     2018     2018     2018

UTILIZATION - TOTAL FLEET:  (I)

 

Americas fleet:

Deepwater 61.9 % 49.9 % 50.6 % 54.8 % 42.2 %
Towing-supply 35.4 42.8 40.6 37.7 35.7
Other   26.3     35.3     41.2     48.3     61.9  
Total 48.4 % 46.0 % 46.1 % 48.3 % 42.7 %

Middle East/Asia Pacific fleet:

Deepwater 57.8 % 57.6 % 59.0 % 64.2 % 54.4 %
Towing-supply 64.8 62.3 64.2 60.2 40.0
Other               100.0      
Total 61.5 % 60.3 % 62.4 % 61.6 % 44.9 %

Europe/Mediterranean Sea fleet:

Deepwater 60.1 % 66.2 % 72.0 % 79.5 % 64.7 %
Towing-supply   59.9     39.0     44.3     29.0     25.0  
Total 60.1 % 63.1 % 67.0 % 70.3 % 57.1 %

West Africa fleet:

Deepwater 52.9 % 58.5 % 61.9 % 60.2 % 52.3 %
Towing-supply 40.0 46.5 48.0 47.0 39.0
Other   57.9     57.3     44.2     49.2     36.6  
Total 49.4 % 53.6 % 51.4 % 51.9 % 42.2 %

Worldwide fleet:

Deepwater 58.6 % 57.7 % 60.0 % 63.5 % 52.2 %
Towing-supply 47.0 50.6 52.7 49.9 38.3
Other   50.4     52.2     43.6     49.1     40.8  
Total   53.6 %   54.4 %   54.5 %   55.5 %   44.4 %

Note (I):  Utilization Total Fleet equals Days Worked / Available Days Total Fleet.

 
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
 
  Three Months Ended
March 31,   December 31,   September 30,   June 30,   March 31,
    2019     2018     2018     2018     2018

UTILIZATION - ACTIVE FLEET:  (J)

 

Americas fleet:

Deepwater 88.2 % 82.3 % 78.8 % 85.7 % 69.1 %
Towing-supply 89.5 88.4 84.2 78.5 76.6
Other   68.2     65.4     82.3     72.4     92.9  
Total 87.2 % 82.1 % 80.7 % 81.8 % 74.6 %

Middle East/Asia Pacific fleet:

Deepwater 80.9 % 83.6 % 75.6 % 82.9 % 75.0 %
Towing-supply 72.8 73.3 77.5 79.6 54.1
Other               100.0      
Total 76.1 % 77.1 % 76.9 % 80.8 % 61.2 %

Europe/Mediterranean Sea fleet:

Deepwater 83.2 % 89.8 % 80.3 % 84.2 % 72.6 %
Towing-supply   97.8     78.0     88.7     87.4     100.0  
Total 84.1 % 88.8 % 81.2 % 84.4 % 74.3 %

West Africa fleet:

Deepwater 69.2 % 77.0 % 79.5 % 79.9 % 74.8 %
Towing-supply 85.6 88.9 82.6 81.0 73.4
Other   79.7     84.3     67.8     77.3     69.9  
Total 76.8 % 82.8 % 77.1 % 79.5 % 72.8 %

Worldwide fleet:

Deepwater 80.9 % 83.2 % 78.8 % 83.0 % 72.9 %
Towing-supply 80.8 81.2 80.5 80.1 64.5
Other   78.0     80.7     70.1     76.4     74.5  
Total   80.6 %   82.2 %   78.3 %   80.9 %   69.8 %

Note (J):  Utilization Active Fleet equals Days Worked / Available Days - Active Fleet.

 
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
 
  Three Months Ended
March 31,   December 31,   September 30,   June 30,   March 31,
      2019   2018   2018   2018   2018

AVERAGE VESSEL DAY RATES:  (K)

 

Americas fleet:

Deepwater $ 12,217 13,127 16,138 18,162 16,626
Towing-supply 9,993 10,722 11,115 14,349 14,191
Other     9,135   9,311   9,281   9,029   9,061
Total $ 11,436 12,091 13,924 15,995 14,558

Middle East/Asia Pacific fleet:

Deepwater $ 8,417 8,215 8,411 9,287 10,122
Towing-supply 6,255 6,801 6,422 6,627 6,589
Other           6,122  
Total $ 7,205 7,291 7,123 7,554 8,051

Europe/Mediterranean Sea fleet:

Deepwater $ 11,356 10,696 9,802 9,676 9,132
Towing-supply     5,566   5,867   5,658   7,195   6,695
Total $ 10,964 10,350 9,302 9,489 8,928

West Africa fleet:

Deepwater $ 11,307 10,023 9,793 9,940 10,795
Towing-supply 13,601 12,675 13,019 13,054 13,245
Other     3,693   3,645   3,515   3,508   3,306
Total $ 9,627 8,982 9,291 9,050 9,501

Worldwide fleet:

Deepwater $ 11,082 10,747 11,121 11,779 11,606
Towing-supply 9,271 9,574 9,323 9,882 10,355
Other     4,370   4,407   4,701   4,513   4,742
Total   $ 9,806   9,545   9,616   10,047   10,093

Note (K):  Average Vessel Day Rates equals Vessel Revenue / Days Worked.

 
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
 
  Three Months Ended
March 31,   December 31,   September 30,   June 30,   March 31,
(In thousands)     2019     2018     2018     2018     2018

Americas

Vessel revenues $ 35,279 31,813 28,039 32,601 26,081
 
Vessel operating costs:
Crew costs $ 17,099 15,596 12,169 11,158 9,093
Routine repairs and maintenance 3,152 2,443 2,017 1,471 1,917
Major repairs 468 (5 ) 554 58 (187 )
Insurance and loss reserves 741 (38 ) (488 ) 1,031 (551 )
Fuel, lube and supplies 2,445 2,350 2,081 1,792 1,618
Other     2,771     2,523     1,787     2,790     406  
Total vessel operating costs $ 26,676 22,869 18,120 18,300 12,296
 
Vessel operating margin ($) $ 8,603 8,944 9,919 14,301 13,785
Vessel operating margin (%) 24.4 % 28.1 % 35.4 % 43.9 % 52.9 %
 

Americas - Select operating statistics

Average vessels - Total fleet 71 62 47 46 47
Utilization - Total fleet 48.4 % 46.0 % 46.1 % 48.3 % 42.7 %
 
Average vessels - Active fleet 39 35 27 27 27
Utilization - Active fleet 87.2 % 82.1 % 80.7 % 81.8 % 74.6 %
 
Average day rates $ 11,436 12,091 13,924 15,995 14,558
 
Vessels commencing drydocks 6 3 11 2 7
 
Major repairs expense and deferred drydocking and survey costs:
Major repairs expense $ 468 (5 ) 554 58 (187 )
Cash paid for deferred

drydocking and survey costs

$ 2,178     3,406     1,099     1,097     2,775  
$ 2,646     3,401     1,653     1,155     2,588  
 
Deferred drydocking and survey costs - beginning balance $ 7,245 4,638 4,108 3,383 707
Cash paid for deferred drydocking and survey costs $ 2,178 3,406 1,099 1,097 2,775
Amortization of deferred drydocking and survey costs $ (960 ) (799 ) (569 ) (389 ) (90 )
Net vessel transfers in/out of the segment $             17     (9 )
Deferred drydocking and survey costs - ending balance $ 8,463     7,245     4,638     4,108     3,383  
 
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
 
  Three Months Ended
March 31,   December 31,   September 30,   June 30,   March 31,
(In thousands)     2019     2018     2018     2018     2018

Middle East/Asia Pacific

Vessel revenues $ 20,456 19,474 19,927 22,406 18,388
 
Vessel operating costs:
Crew costs $ 8,627 8,372 8,412 8,596 8,108
Routine repairs and maintenance 1,581 2,377 1,898 1,558 1,209
Major repairs (39 ) 36 254
Insurance and loss reserves 589 154 (458 ) 383 (150 )
Fuel, lube and supplies 2,335 2,402 1,394 2,221 2,339
Other     1,733     1,947     2,203     2,578     2,742  
Total vessel operating costs $ 14,865 15,252 13,410 15,372 14,502
 
Vessel operating margin ($) $ 5,591 4,222 6,517 7,034 3,886
Vessel operating margin (%) 27.3 % 21.7 % 32.7 % 31.4 % 21.1 %
 

Middle East/Asia Pacific - Select operating statistics

Average vessels - Total fleet 51 48 49 53 56
Utilization - Total fleet 61.5 % 60.3 % 62.4 % 61.6 % 44.9 %
 
Average vessels - Active fleet 41 37 40 41 41
Utilization - Active fleet 76.1 % 77.1 % 76.9 % 80.8 % 61.2 %
 
Average day rates $ 7,205 7,291 7,123 7,554 8,051
 
Vessels commencing drydocks 7 3 4 3 3
 
Major repairs expense and deferred drydocking and survey costs:
Major repairs expense $ - - (39 ) 36 254
Cash paid for deferred

drydocking and survey costs

$ 4,481     2,459     1,219     1,813     1,728  
$ 4,481     2,459     1,180     1,849     1,982  
 
Deferred drydocking and survey costs - beginning balance $ 5,961 4,099 3,361 1,871 205
Cash paid for deferred drydocking and survey costs $ 4,481 2,459 1,219 1,813 1,728
Amortization of deferred drydocking and survey costs $ (1,264 )   (597 )   (481 )   (323 )   (62 )
Deferred drydocking and survey costs - ending balance $ 9,178     5,961     4,099     3,361     1,871  
 
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
 
  Three Months Ended
March 31,   December 31,   September 30,   June 30,   March 31,
(In thousands)     2019     2018     2018     2018     2018

Europe/Mediterranean Sea

Vessel revenues $ 28,558 20,717 12,566 13,357 9,623
 
Vessel operating costs:
Crew costs $ 13,059 9,271 5,642 5,777 4,991
Routine repairs and maintenance 2,404 1,799 1,645 1,083 1,240
Major repairs 174 550 192 900 338
Insurance and loss reserves 561 380 116 247 110
Fuel, lube and supplies 1,891 1,294 1,195 1,136 1,810
Other     2,994     2,008     1,838     1,459     1,606  
Total vessel operating costs $ 21,083 15,302 10,628 10,602 10,095
 
Vessel operating margin ($) $ 7,475 5,415 1,938 2,755 (472 )
Vessel operating margin (%) 26.2 % 26.1 % 15.4 % 20.6 % -4.9 %
 

Europe/Mediterranean Sea - Select operating statistics

Average vessels - Total fleet 48 35 22 22 21
Utilization - Total fleet 60.1 % 63.1 % 67.0 % 70.3 % 57.1 %
 
Average vessels - Active fleet 34 25 18 18 16
Utilization - Active fleet 84.1 % 88.8 % 81.2 % 84.4 % 74.3 %
 
Average day rates $ 10,964 10,350 9,302 9,489 8,928
 
Vessels commencing drydocks 6 2 2 6 6
 
Major repairs expense and deferred drydocking and survey costs:
Major repairs expense $ 174 550 192 900 338
Cash paid for deferred

drydocking and survey costs

$ 2,432     1,635     383     1,271     2,633  
$ 2,606     2,185     575     2,171     2,971  
 
Deferred drydocking and survey costs - beginning balance $ 4,278 3,279 3,356 2,470
Cash paid for deferred drydocking and survey costs $ 2,432 1,635 383 1,271 2,633
Amortization of deferred drydocking and survey costs $ (879 )   (636 )   (460 )   (385 )   (163 )
Deferred drydocking and survey costs - ending balance $ 5,831     4,278     3,279     3,356     2,470  
 
TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA
 
  Three Months Ended
March 31,   December 31,   September 30,   June 30,   March 31,
(In thousands)     2019     2018     2018     2018     2018

West Africa

   
Vessel revenues $ 35,369 36,523 36,479 35,810 33,402
 
Vessel operating costs:
Crew costs $ 9,360 11,894 11,392 10,837 12,032
Routine repairs and maintenance 1,734 1,826 2,382 2,263 2,816
Major repairs 189 415 (15 ) 609 117
Insurance and loss reserves 287 141 (876 ) 530 (480 )
Fuel, lube and supplies 2,674 3,272 3,310 3,032 3,245
Other     5,335     3,998     6,886       6,467       6,741  
Total vessel operating costs $ 19,579 21,546 23,079 23,738 24,471
 
Vessel operating margin ($) $ 15,790 14,977 13,400 12,072 8,931
Vessel operating margin (%) 44.6 % 41.0 % 36.7 % 33.7 % 26.7 %
 

West Africa - Select operating statistics

Average vessels - Total fleet 83 82 83 84 93
Utilization - Total fleet 49.4 % 53.6 % 51.4 % 51.9 % 42.2 %
 
Average vessels - Active fleet 54 53 55 55 54
Utilization - Active fleet 76.8 % 82.8 % 77.1 % 79.5 % 72.8 %
 
Average day rates $ 9,627 8,982 9,291 9,050 9,501
 
Vessels commencing drydocks 5 4 2 3 3
 
Major repairs expense and deferred drydocking and survey costs:
Major repairs expense $ 189 415 (15 ) 609 117
Cash paid for deferred

drydocking and survey costs

$ 3,194     1,380     993       353       1,724  
$ 3,383     1,795     978       962       1,841  
 
Deferred drydocking and survey costs - beginning balance $ 4,731 4,037 3,547 3,706 2,296
Cash paid for deferred drydocking and survey costs $ 3,194 1,380 993 353 1,724
Amortization of deferred drydocking and survey costs $ (796 ) (686 ) (503 ) (495 ) (323 )
Net vessel transfers in/out of the segment $               (17 )     9  
Deferred drydocking and survey costs - ending balance $ 7,129     4,731     4,037       3,547       3,706  
 

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

 
  Three Months Ended
March 31,   December 31,   September 30,   June 30,   March 31,
(In thousands)     2019     2018     2018     2018     2018

Worldwide

Vessel revenues $ 119,662 108,527 97,011 104,174 87,494
 
Vessel operating costs:
Crew costs $ 48,145 45,133 37,615 36,368 34,224
Routine repairs and maintenance 8,871 8,445 7,942 6,375 7,182
Major repairs 830 960 692 1,603 522
Insurance and loss reserves 2,178 636 (1,706 ) 2,191 (1,071 )
Fuel, lube and supplies 9,345 9,317 7,980 8,181 9,012
Other     12,834     10,476     12,714     13,294     11,495  
Total vessel operating costs $ 82,203 74,967 65,237 68,012 61,364
 
Vessel operating margin ($) $ 37,459 33,560 31,774 36,162 26,130
Vessel operating margin (%) 31.3 % 30.9 % 32.8 % 34.7 % 29.9 %
 

Worldwide - Select operating statistics

Average vessels - Total fleet 253 227 201 205 217
Utilization - Total fleet 53.6 % 54.4 % 54.5 % 55.5 % 44.4 %
 
Average vessels - Active fleet 168 150 140 141 138
Utilization - Active fleet 80.6 % 82.2 % 78.3 % 80.9 % 69.8 %
 
Average day rates $ 9,806 9,545 9,616 10,047 10,093
 
Vessels commencing drydocks 24 12 19 14 19
 
Major repairs expense and deferred drydocking and survey costs:
Major repairs expense $ 831 960 692 1,603 522
Cash paid for deferred

drydocking and survey costs

$ 12,285     8,880     3,694     4,534     8,860  
$ 13,116     9,840     4,386     6,137     9,382  
 
Deferred drydocking and survey costs - beginning balance $ 22,215 16,053 14,372 11,430 3,208
Cash paid for deferred drydocking and survey costs $ 12,285 8,880 3,694 4,534 8,860
Amortization of deferred drydocking and survey costs $ (3,898 )   (2,718 )   (2,013 )   (1,592 )   (638 )
Deferred drydocking and survey costs - ending balance $ 30,602     22,215     16,053     14,372     11,430  
 

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

 
  Three Months Ended
March 31,   December 31,   September 30,   June 30,   March 31,
(In thousands)     2019     2018     2018     2018     2018
 
 
Consolidated EBITDA (L) (M) (N) (O) $ 18,951 22,528 10,958 17,709 (9,905 )
 
Merger-related professional services costs (88 ) (4,465 ) (3,036 ) (1,547 )
Merger-related lease exit costs (5,538 )
Integration-related severance and similar costs (3,651 ) (2,158 )
Impairment of due from affiliate (20,083 )
Long-lived asset impairments (36,878 ) (16,853 ) (1,215 ) (6,186 )
Sale leaseback redelivery costs
Loss on debt extinguishment (8,119 )
Interest and other debt costs (7,736 ) (7,707 ) (7,585 ) (7,547 ) (7,599 )
Income tax benefit (expense) (5,830 ) (7,856 ) (1,278 ) (5,797 ) (3,321 )
Depreciation (19,034 ) (17,383 ) (11,377 ) (11,192 ) (11,380 )
Amortization of deferred drydocking and survey costs (3,898 ) (2,718 ) (2,012 ) (1,593 ) (638 )
                                 
Net loss   $ (21,286 )   (90,377 )   (31,183 )   (11,182 )   (39,029 )
                                 
Three Months Ended
March 31, December 31, September 30, June 30, March 31,
(In thousands)     2019     2018     2018     2018     2018
 
 
Consolidated EBITDA (L) (M) (N) (O) $ 18,951 22,528 10,958 17,709 (9,905 )
 
Restructuring-related professional service costs
Merger-related professional services costs (88 ) (4,465 ) (3,036 ) (1,547 )
Merger-related lease exit costs (5,538 )
Integration-related severance and similar costs (3,651 ) (2,158 )
Cash paid for interest (8,319 ) (8,108 ) (8,084 ) (7,982 ) (8,152 )
Cash paid for taxes (4,415 ) (3,149 ) (3,596 ) (3,654 ) (6,429 )
Cash paid for deferred drydocking costs (12,285 ) (8,880 ) (3,694 ) (4,534 ) (8,860 )
Change in net working capital, excluding cash 5,999 (11,181 ) 8,678 7,466 8,649
Equity in net (earnings) losses of unconsolidated companies (O) 62 3,871 (56 ) (390 ) 15,439
Stock-based compensation expense 5,627 3,439 3,828 3,183 2,956
Gain on asset disposition (1,270 ) (8,938 ) 1,571 (1,338 ) (1,919 )
Changes in other, net (3,768 ) 4,290 (1,322 ) 14,054 2,237
                                 
Net cash provided (used) in operating activities   $ (3,157 )   (18,289 )   5,247     22,967     (5,984 )
 

Note (L):  Consolidated EBITDA excludes interest and other debt costs, income tax expense, depreciation and amortization, asset impairment charges, restructuring-related professional services costs and costs related to the redelivery of sale leaseback vessels. Merger and integration related costs have been separately presented in the above table.

 

Note (M):  Consolidated EBITDA for the three months ended March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018 includes non-cash, stock-based compensation expense of $5,627, $3,439, $3,828, $3,183 and $2,956, respectively.

 

Note (N):  Consolidated EBITDA for the three months ended March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018 includes foreign exchange gains (losses) of $(508), $1,454, $1, $(1,002) and $(348), respectively.

 

Note (O):  Consolidated EBITDA and equity in net (earnings) losses of unconsolidated companies for the three months ended March 31, 2019, December 31, 2018, September 30, 2018, June 30, 2018 and March 31, 2018 includes foreign exchange gains (losses) of $0 $0, $0, $(5,767)and $(14,823), respectively.

Non-GAAP Financial Measures

We disclose and discuss EBITDA as a non-GAAP financial measure in our public releases, including quarterly earnings releases, investor conference calls and other filings with the Securities and Exchange Commission. We define EBITDA as earnings (net income) before interest and other debt costs, loss on debt extinguishments, income tax expense, depreciation and amortization, merger and integration related items included in general and administrative expenses and asset impairments. Our measure of EBITDA may not be comparable to similarly titled measures presented by other companies. Other companies may calculate EBITDA differently than we do, which may limit its usefulness as a comparative measure.

We view EBITDA both as a performance and liquidity measure and, as such, we believe that the GAAP financial measures most directly comparable to it are net income and net cash provided (used) in operating activities, respectively. Because EBITDA is not a measure of financial performance calculated in accordance with GAAP, it should not be considered in isolation or as a substitute for operating income, net income or loss, cash provided (used) in operating activities, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP.

EBITDA is widely used by investors and other users of our financial statements as a supplemental financial measure that, when viewed with our GAAP results and the accompanying reconciliations, we believe EBITDA provides additional information that is useful to gain an understanding of the factors and trends affecting our ability to service debt, pay taxes and fund drydocking and survey costs and capital expenditures. We also believe the disclosure of EBITDA helps investors meaningfully evaluate and compare our cash flow generating capacity from quarter-to-quarter and year-to-year.

EBITDA is also a financial metric used by management (i) as a supplemental internal measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; (ii) to compare to the EBITDA of other companies when evaluating potential acquisitions; and (iii) to assess our ability to service existing fixed charges and incur additional indebtedness.

Source: Tidewater Inc.

Tidewater Inc.,
Quintin V. Kneen
Chief Financial Officer
713-470-5231

Jason Stanley
Director, Investor Relations
713-470-5292

SOURCE: Tidewater Inc.