COVINGTON, La., May 3, 2017 /PRNewswire/ -- Hornbeck
Offshore Services, Inc. (NYSE:HOS) announced today results for the
first quarter ended March 31, 2017.
Following is an executive summary for this period and the
Company's future outlook:
- 1Q2017 diluted EPS was $(0.76), a decrease of $0.23, or 43%, from 4Q2016 diluted EPS of
$(0.53)
- 1Q2017 net loss was $(27.9)
million, a decrease of $8.7
million from 4Q2016 net loss of $(19.2) million
- 1Q2017 EBITDA was $1.6
million, a slight increase from 4Q2016 EBITDA of
$1.1 million
- 1Q2017 revenues include a redelivery fee of $9.4 million related to the completion of a
long-term OSV contract
- 1Q2017 G&A expense includes $3.8
million of additional bad debt reserve related to a former
customer's bankruptcy proceedings
- Excluding these two items, adjusted 1Q2017 diluted EPS and
net loss were $(0.87) and
$(31.7) million,
respectively
- Excluding these two items, adjusted 1Q2017 EBITDA was
$(3.9) million, a decrease of
$5.0 million from 4Q2016 EBITDA of
$1.1 million
- Excluding the redelivery fee, 1Q2017 average new gen OSV
dayrates were $19,221, a decrease of
$4,991, or 21%, sequentially
- Excluding the redelivery fee, 1Q2017 effective new gen OSV
dayrates were $3,787, a decrease of
$1,055, or 22%, sequentially
- 1Q2017 utilization of the Company's new gen OSV fleet was
20%, in-line with the sequential quarter
- 1Q2017 effective utilization of the Company's active new gen
OSVs was 68%, down from 75% sequentially
- The Company has exercised the interest coverage holiday
permitted by the revolving credit facility capping the borrowing
base at $75 million
- The Company currently has 41 OSVs and two MPSVs stacked and
expects to have 46 OSVs and two MPSVs stacked by end of
3Q17
- Quarter-end cash was $209
million with only $70 million
of growth capex remaining to be funded under the 24-vessel newbuild
program
The Company recorded a net loss for the first quarter of 2017 of
$(27.9) million, or $(0.76) per diluted share, compared to a net loss
of $(7.5) million, or $(0.21) per diluted share, for the year-ago
quarter; and a net loss of $(19.2)
million, or $(0.53) per
diluted share, for the fourth quarter of 2016. Included in
the Company's first quarter 2017 results is a $9.4 million redelivery fee related to the
completion of a long-term contract for one of the Company's
OSVs. Also included in the Company's first quarter 2017
results is a $3.8 million increase in
G&A expense resulting from additional bad debt reserves due to
an unfavorable ruling in recent bankruptcy proceedings related to a
receivable from a former customer. Excluding the net impact
of these two items, net loss and diluted EPS for the first quarter
of 2017 would have been $(31.7)
million, and $(0.87) per
share, respectively. Diluted common shares for the first
quarter of 2017 were 36.6 million compared to 36.1 million and 36.4
million for the first quarter of 2016 and the fourth quarter of
2016, respectively. GAAP requires the use of basic shares
outstanding for diluted EPS when reporting a net loss. EBITDA
for the first quarter of 2017 was $1.6
million compared to $28.2
million for the first quarter of 2016 and $1.1 million for the fourth quarter of
2016. Excluding the net impact of the two items discussed
above, first quarter 2017 EBITDA would have been $(3.9) million. For additional information
regarding EBITDA as a non-GAAP financial measure, please see Note
10 to the accompanying data tables.
Revenues. Revenues were $44.1 million for the first quarter of 2017, a
decrease of $32.7 million, or 42.6%,
from $76.8 million for the first
quarter of 2016; and an increase of $2.2
million, or 5.3%, from $41.9
million for the fourth quarter of 2016. The
year-over-year decrease in revenues was primarily due to weak
market conditions worldwide, which led to the Company's decision to
stack 18 incremental vessels on various dates since December 31, 2015. The sequential increase
was primarily attributable to the redelivery fee mentioned above.
Excluding this fee, adjusted revenue was $34.7 million, a decrease of $42.1 million, or 54.8% from the prior-year
quarter and a decrease of $7.2
million, or 17.2% from the sequential quarter.
As of March 31, 2017, the
Company had 44 OSVs and two MPSVs stacked. For the three
months ended March 31, 2017, the
Company had an average of 45.9 vessels stacked compared to 33.7
vessels stacked in the prior-year quarter and 46.5 vessels stacked
in the sequential quarter. Operating loss was $(26.5) million, or (60.1)% of revenues, for the
first quarter of 2017 compared to operating loss of $(0.8) million, or (1.0)% of revenues, for the
prior-year quarter; and operating loss of $(27.5) million, or (65.6)% of revenues, for the
fourth quarter of 2016. Excluding the net impact of the two
items discussed above, first quarter 2017 operating loss would have
been $(32.0) million, or (92.3)% of
adjusted revenues. Average new generation OSV dayrates for
the first quarter of 2017 were $27,767 compared to $24,601 for the same period in 2016 and
$24,212 for the fourth quarter of
2016. Excluding the impact of the redelivery fee, average new
generation OSV dayrates would have been $19,221 for the first quarter of 2017. New
generation OSV utilization was 19.7% for the first quarter of 2017
compared to 35.1% for the year-ago quarter and 20.0% for the
sequential quarter. The year-over-year decrease in
utilization is primarily due to weak market conditions for
high-spec OSVs operating in the GoM and the incremental vessels
that were stacked. Excluding stacked vessel days, the
Company's new generation OSV effective utilization was 67.5%, 77.4%
and 74.5% for the same periods, respectively.
Utilization-adjusted, or effective, new generation OSV dayrates for
the first quarter of 2017 were $5,470
compared to $8,635 for the same
period in 2016 and $4,842 for the
fourth quarter of 2016. Excluding the impact of the
redelivery fee, utilization-adjusted, or effective, new generation
OSV dayrates for the first quarter of 2017 would have been
$3,787.
Operating Expenses. Operating
expenses were $27.9 million for the
first quarter of 2017, a decrease of $12.5
million, or 30.9%, from $40.4
million for the first quarter of 2016; and an increase of
$0.4 million, or 1.5%, from
$27.5 million for the fourth quarter
of 2016. The year-over-year decrease in operating expenses
was primarily due to vessels that the Company removed from its
active fleet count through its stacking strategy since December 31, 2015, which resulted in a
substantial reduction in mariner headcount, mariner pay cuts and
reductions in other operating expenses.
General and Administrative ("G&A").
G&A expense was $14.2
million for the first quarter of 2017 compared to
$8.7 million for the first quarter of
2016; and $13.3 million for the
fourth quarter of 2016. The year-over-year increase in
G&A expense was primarily attributable to the $3.8 million of additional bad debt reserves
previously mentioned and, to a lesser extent, $1.0 million of higher short-term incentive
compensation expense and $0.8 million
of long-term incentive compensation expense. These unfavorable
variances were partially offset by $1.0
million of lower shoreside compensation expense due to
workforce reductions that were implemented during fiscal
2016. In addition, the first quarter of 2016 was favorably
impacted by $2.0 million of lower
long-term stock-based incentive compensation expense and
$1.1 million of lower short-term
incentive compensation expense. After adjusting for these
reconciling items, G&A expense for the first quarter of 2017
and the first quarter of 2016 were comparable at $11.4 million and $11.8
million, respectively.
Depreciation and Amortization. Depreciation
and amortization expense was $28.4
million for the first quarter of 2017, or $0.1 million and $0.2
million lower than the year-ago quarter and sequential
quarter, respectively. Depreciation increased by $2.5 million over the year-ago quarter primarily
due to the contribution of four vessels that were placed in service
under the Company's fifth OSV newbuild program since December 31, 2015. The depreciation
increase was offset by a decrease in amortization expense of
$2.6 million, which was mainly driven
by postponed recertifications for certain of the Company's stacked
OSVs. Amortization expense is expected to decrease further in
the near term as a result of the deferral of regulatory
recertification activities for vessels that have been stacked.
The Company expects amortization expense to increase
temporarily whenever market conditions warrant reactivation of
currently stacked vessels, which will then require the Company to
drydock such vessels, and thereafter to revert back to historical
levels.
Interest Expense. Interest expense was
$13.8 million during the first
quarter of 2017, or $2.7 million
higher than the prior-year quarter. The increase was
primarily due to the Company capitalizing a lower percentage of
interest compared to the prior-year period driven by a lower
average construction work-in-progress balance under the Company's
nearly completed newbuild program. The Company recorded
$2.4 million of capitalized
construction period interest, or roughly 15% of its total interest
costs, for the first quarter of 2017 compared to $5.0 million, or roughly 31% of its total
interest costs, for the year-ago quarter.
Income Taxes. The Company's income tax
benefit rate for the first quarter of 2017 was 30.6%. This
was below the Company's historical tax rate due to the adoption of
a new accounting standard effective January
1, 2017, which requires the tax impact of stock-based
compensation arrangements to be recorded as a discrete item within
the provision for income taxes, whereas it was previously recorded
in additional paid-in capital. This standard will cause
volatility in the Company's effective tax rates in the periods when
outstanding stock options are exercised or restricted stock awards
vest.
Future Outlook
Based on the key assumptions outlined below and in the attached
data tables, the following statements reflect management's current
expectations regarding future operating results and certain events
during the Company's guidance period as set forth on pages 11 and
12 of this press release. These statements are
forward-looking and actual results may differ materially,
particularly given the volatility inherent in, and currently
depressed conditions of, the Company's industry. Other than
as expressly stated, these statements do not include the potential
impact of any significant further decline in commodity prices for
oil and natural gas; any additional future repositioning voyages;
any additional stacking or reactivation of vessels; unexpected
vessel repairs or shipyard delays; or future capital transactions,
such as vessel acquisitions, modifications or divestitures,
business combinations, possible share or note repurchases or
financings that may be commenced after the date of this
disclosure. Additional cautionary information concerning
forward-looking statements can be found on page 8 of this news
release.
Forward Guidance
The Company's forward guidance for selected operating and
financial data, outlined below and in the attached data tables,
reflects the current state of depressed commodity prices and
planned decreases in the capital spending budgets of its
customers.
Vessel Counts. As of
March 31, 2017, the Company's fleet
consisted of 62 new generation OSVs and eight MPSVs. The
forecasted vessel counts presented in this press release reflect
the two MPSV newbuilds expected to be delivered during fiscal 2018,
as discussed below. With an average of 44.8 new generation
OSVs and 1.9 MPSVs projected to be stacked during fiscal 2017, the
Company's active fleet for 2017 is expected to be comprised of an
average of 17.2 new generation OSVs and 6.1 MPSVs. With an
assumed average of 46.0 new generation OSVs and 2.0 MPSVs projected
to be stacked during fiscal 2018, the Company's active fleet for
2018 is expected to be comprised of an average of 16.0 new
generation OSVs and 7.3 MPSVs.
Operating Expenses. Aggregate
cash operating expenses are projected to be in the range of
$30.0 million to $35.0 million for
the second quarter of 2017, and $115.0
million to $130.0 million for the full-year 2017.
Reflected in the cash opex guidance ranges above are the
anticipated continuing results of several cost containment measures
initiated by the Company in 2015 and 2016 due to prevailing market
conditions, including, among other actions, the stacking of 46 new
generation OSVs, including five 300 class OSVs, and two MPSVs on
various dates from October 1, 2014
through March 31, 2017, as well as
company-wide headcount reductions and across-the-board pay-cuts for
shoreside and vessel personnel. The Company plans to stack
four OSVs during the second quarter of 2017 and one additional OSV
during the third quarter of 2017. The Company may choose to
stack or reactivate additional vessels as market conditions
warrant. The cash operating expense estimate above is
exclusive of any additional repositioning expenses the Company may
incur in connection with the potential relocation of more of its
vessels into international markets or back to the GoM, and any
customer-required cost-of-sales related to future contract fixtures
that are typically recovered through higher dayrates.
G&A Expense. G&A expense
is expected to be in the approximate range of $10.5 million to $11.5 million for the second
quarter of 2017, and $45.0 million to $50.0
million for the full-year 2017. This full-year G&A
range includes the $3.8 million of
additional bad debt reserve recorded during the first quarter of
2017.
Other Financial Data. Quarterly
depreciation, amortization, net interest expense, cash income
taxes, cash interest expense, weighted-average basic shares
outstanding and weighted-average diluted shares outstanding for the
second quarter of 2017 are projected to be $24.7 million, $3.6
million, $13.8 million,
$0.3 million, $11.3 million, 36.8 million and 37.6 million,
respectively. As a reminder, please note that GAAP requires
the use of basic shares outstanding for diluted EPS when reporting
a net loss. Guidance for depreciation, amortization, net
interest expense, cash income taxes and cash interest expense for
the full fiscal years 2017 and 2018 is provided on page 12 of this
press release. The Company's annual effective tax rate is
expected to be between 34.0% and 35.0% for fiscal 2017 and between
36.0% and 38.0% for fiscal 2018.
Capital Expenditures Outlook
Update on OSV Newbuild Program
#5. The Company's fifth OSV
newbuild program consists of four 300 class OSVs, five 310 class
OSVs, ten 320 class OSVs, three 310 class MPSVs and two 400 class
MPSVs. As of May 3, 2017, the
Company has placed 22 vessels in service under this program.
The two remaining vessels under this 24-vessel domestic
newbuild program, which are 400 class MPSVs, are currently expected
to be delivered in the first and third quarters of 2018,
respectively.
The Company owns 62 new generation OSVs and eight MPSVs as of
March 31, 2017. Based on the
projected MPSV in-service dates, the Company expects to own eight
and ten MPSVs as of December 31, 2017
and 2018, respectively. These vessel additions result in a
projected average MPSV fleet complement of 8.0, 9.3 and 10.0
vessels for the fiscal years 2017, 2018 and 2019, respectively.
The aggregate cost of the Company's fifth OSV newbuild
program, excluding construction period interest, is expected to be
approximately $1,335.0 million, of
which $26.1 million and $44.9 million are expected to be incurred in the
full fiscal years 2017 and 2018, respectively. From the
inception of this program through March 31,
2017, the Company has incurred $1,265.3 million, or 94.8%, of total expected
project costs, including $1.3 million
that was spent during the first quarter of 2017. The Company
expects to incur newbuild project costs of $4.6 million during the second quarter of
2017.
Update on Maintenance Capital Expenditures.
Please refer to the attached data table on page 11 of
this press release for a summary, by period and by vessel type, of
historical and projected data for drydock downtime (in days) and
maintenance capital expenditures for each of the quarterly and/or
annual periods presented for the fiscal years 2016, 2017 and 2018.
Maintenance capital expenditures, which are recurring in
nature, primarily include regulatory drydocking charges incurred
for the recertification of vessels and other vessel capital
improvements that extend or maintain a vessel's economic useful
life. The Company expects that its maintenance capital
expenditures for its fleet of vessels will be approximately
$9.3 million and $14.5 million for the full fiscal years 2017 and
2018, respectively. These cash outlays are expected to be incurred
over approximately 206 and 228 days of aggregate commercial
downtime in 2017 and 2018, respectively, during which the vessels
will not earn revenue.
Update on Other Capital Expenditures. Please
refer to the attached data tables on page 11 of this press release
for a summary, by period, of historical and projected data for
other capital expenditures, for each of the quarterly and/or annual
periods presented for the fiscal years 2016, 2017 and 2018.
Other capital expenditures, which are generally
non-recurring, are comprised of the following: (i)
commercial-related vessel improvements, such as the addition of
cranes, ROVs, helidecks, living quarters and other specialized
vessel equipment, or the modification of vessel capacities or
capabilities, such as DP upgrades and mid-body extensions, which
costs are typically included in and offset, in whole or in part, by
higher dayrates charged to customers; and (ii) non-vessel related
capital expenditures, including costs related to the Company's
shore-based facilities, leasehold improvements and other corporate
expenditures, such as information technology or office furniture
and equipment. The Company expects miscellaneous incremental
commercial-related vessel improvements and non-vessel capital
expenditures to be approximately $1.2
million and $1.0 million,
respectively, for the full fiscal years 2017 and 2018,
respectively.
Liquidity Outlook
As of March 31, 2017, the Company
had a cash balance of $209.1 million.
Based on the Company's results for the trailing four
quarters, including the first quarter of 2017, the Company
designated the interest coverage holiday permitted by the revolving
credit facility to commence, effective April
27, 2017, for the four-quarter period ending December 31, 2017, unless rescinded sooner.
As a result, the borrowing base will be capped at $75 million during the period of the holiday and
the LIBOR spreads for funded borrowings will be increased by an
additional 50 basis points during and after the holiday.
While the Company remains in compliance with all covenants
under the undrawn facility, its ability to access the full,
currently applicable, $75 million
borrowing base is subject to an anti-cash hoarding provision that,
pro forma for deployment of the use of proceeds, limits the
Company's cash balance to $50 million
at any time the facility is drawn. The Company projects that,
even with the currently depressed operating levels, cash generated
from operations together with cash on hand should be sufficient to
fund its operations and commitments at least through the end of its
current guidance period ending December 31,
2018. However, absent a significant recovery of market
conditions such that cash flow from operations were to increase
materially from projected levels, the Company does not currently
expect to have sufficient liquidity to repay the full amount of its
three tranches of funded unsecured debt outstanding as they mature
in fiscal years 2019, 2020 and 2021, respectively, without
refinancing part or all of such debt. Refinancing in the
current climate is not likely to be achievable on terms that are
in-line with the Company's historic cost of debt capital. The
Company remains fully cognizant of the challenges currently facing
the offshore oil and gas industry and continues to review its
capital structure and assess its strategic options.
Conference Call
The Company will hold a conference call to discuss its first
quarter 2017 financial results and recent developments at
10:00 a.m. Eastern (9:00 a.m. Central) tomorrow, May 4, 2017. To participate in the call, dial
(412) 902-0030 and ask for the Hornbeck Offshore call at least 10
minutes prior to the start time. To access it live over the
Internet, please log onto the web at
http://www.hornbeckoffshore.com, on the "Investors" homepage of the
Company's website at least fifteen minutes early to register,
download and install any necessary audio software. Please
call the Company's investor relations firm, Dennard-Lascar, at
(713) 529-6600 to be added to its e-mail distribution list for
future Hornbeck Offshore news releases. An archived version of the
web cast will be available shortly after the call for a period of
60 days on the "Investors" homepage of the Company's website.
Additionally, a telephonic replay will be available through
May 18, 2017, and may be accessed by
calling (201) 612-7415 and using the pass code 13659859#.
Attached Data Tables
The Company has posted an electronic version of the following
four pages of data tables, which are downloadable in Microsoft
Excel™ format, on the "Investors" homepage of the Hornbeck Offshore
website for the convenience of analysts and investors.
In addition, the Company uses its website as a means of
disclosing material non-public information and for complying with
disclosure obligations under SEC Regulation FD. Such disclosures
will be included on the Company's website under the heading
"Investors." Accordingly, investors should monitor that portion of
the Company's website, in addition to following the Company's press
releases, SEC filings, public conference calls and webcasts.
Hornbeck Offshore Services, Inc. is a leading provider of
technologically advanced, new generation offshore service vessels
primarily in the Gulf of Mexico
and Latin America. Hornbeck
Offshore currently owns a fleet of 70 vessels primarily serving the
energy industry and has two additional ultra high-spec Upstream
vessels under construction for delivery in 2018.
Forward-Looking Statements
This Press Release contains "forward-looking statements," as
contemplated by the Private Securities Litigation Reform Act of
1995, in which the Company discusses factors it believes may affect
its performance in the future. Forward-looking statements are all
statements other than historical facts, such as statements
regarding assumptions, expectations, beliefs and projections about
future events or conditions. You can generally identify
forward-looking statements by the appearance in such a statement of
words like "anticipate," "believe," "continue," "could,"
"estimate," "expect," "forecast," "intend," "may," "might," "plan,"
"potential," "predict," "project," "remain," "should," "will," or
other comparable words or the negative of such words. The accuracy
of the Company's assumptions, expectations, beliefs and projections
depends on events or conditions that change over time and are thus
susceptible to change based on actual experience, new developments
and known and unknown risks. The Company gives no assurance that
the forward-looking statements will prove to be correct and does
not undertake any duty to update them. The Company's actual future
results might differ from the forward-looking statements made in
this Press Release for a variety of reasons, including sustained
low or further declines in oil and natural gas prices; continued
weakness in demand for the Company's services through and beyond
the maturity of any of the Company's long-term debt; unplanned
customer suspensions, cancellations, rate reductions or
non-renewals of vessel charters or vessel management contracts or
failures to finalize commitments to charter or manage vessels;
sustained or further reductions in capital spending budgets by
customers; the inability to accurately predict vessel utilization
levels and dayrates; fewer than anticipated deepwater and
ultra-deepwater drilling units operating in the GoM or other
regions where the Company operates; the effect of inconsistency by
the United States government in
the pace of issuing drilling permits and plan approvals in the GoM
or other drilling regions; the Company's inability to successfully
complete the remainder of its current vessel newbuild program
on-time and on-budget, which involves the construction and
integration of highly complex vessels and systems; the inability to
successfully market the vessels that the Company owns, is
constructing or might acquire; the government's cancellation or
non-renewal of the management, operations and maintenance contracts
for vessels; an oil spill or other significant event in
the United States or another
offshore drilling region that could have a broad impact on
deepwater and other offshore energy exploration and production
activities, such as the suspension of activities or significant
regulatory responses; the imposition of laws or regulations that
result in reduced exploration and production activities or that
increase the Company's operating costs or operating requirements;
environmental litigation that impacts customer plans or projects;
disputes with customers; bureaucratic, administrative or operating
barriers that delay vessels in foreign markets from going on-hire
or result in contractual penalties or deductions imposed by foreign
customers; the impact stemming from the reduction of Petrobras'
announced plans for or administrative barriers to exploration and
production activities in Brazil;
recent disruption in Mexican offshore activities; age or other
restrictions imposed on our vessels by customers; unanticipated
difficulty in effectively competing in or operating in
international markets; less than anticipated subsea infrastructure
and field development demand in the GoM and other markets affecting
our MPSVs; sustained vessel over-capacity for existing demand
levels in the markets in which the Company competes; economic and
geopolitical risks; weather-related risks; upon a return to
improved operating conditions, the shortage of or the inability to
attract and retain qualified personnel, when needed, including
vessel personnel for active vessels or vessels the Company may
reactivate or acquire; any success in unionizing the Company's U.S.
fleet personnel; regulatory risks; the repeal or administrative
weakening of the Jones Act or adverse changes in the interpretation
of the Jones Act related to the U.S. citizenship qualification;
drydocking delays and cost overruns and related risks; vessel
accidents, pollution incidents, or other events resulting in lost
revenue, fines, penalties or other expenses that are unrecoverable
from insurance policies or other third parties; unexpected
litigation and insurance expenses; other industry risks;
fluctuations in foreign currency valuations compared to the U.S.
dollar and risks associated with expanded foreign operations, such
as non-compliance with or the unanticipated effect of tax laws,
customs laws, immigration laws, or other legislation that result in
higher than anticipated tax rates or other costs; the inability to
repatriate foreign-sourced earnings and profits; or the inability
of the Company to refinance or otherwise retire funded debt
obligations that come due in 2019, 2020 and 2021. In addition, the
Company's future results may be impacted by adverse economic
conditions, such as inflation, deflation, or lack of liquidity in
the capital markets, that may negatively affect it or parties with
whom it does business resulting in their non-payment or inability
to perform obligations owed to the Company, such as the failure of
customers to fulfill their contractual obligations or the failure
by individual banks to provide funding under the Company's credit
agreement, if required. Further, the Company can give no
assurance regarding when and to what extent it will effect common
stock or note repurchases. Should one or more of the
foregoing risks or uncertainties materialize in a way that
negatively impacts the Company, or should the Company's underlying
assumptions prove incorrect, the Company's actual results may vary
materially from those anticipated in its forward-looking
statements, and its business, financial condition and results of
operations could be materially and adversely affected and, if
sufficiently severe, could result in noncompliance with certain
covenants of the Company's currently undrawn revolving credit
facility. Additional factors that you should consider are set forth
in detail in the "Risk Factors" section of the Company's most
recent Annual Report on Form 10-K as well as other filings the
Company has made and will make with the Securities and Exchange
Commission which, after their filing, can be found on the Company's
website www.hornbeckoffshore.com.
Regulation G Reconciliation
This Press Release also contains references to the non-GAAP
financial measures of earnings, or net income, before interest,
income taxes, depreciation and amortization, or EBITDA, and
Adjusted EBITDA. The Company views EBITDA and Adjusted EBITDA
primarily as liquidity measures and, therefore, believes that the
GAAP financial measure most directly comparable to such measure is
cash flows provided by operating activities. Reconciliations of
EBITDA and Adjusted EBITDA to cash flows provided by operating
activities are provided in the table below. Management's opinion
regarding the usefulness of EBITDA to investors and a description
of the ways in which management uses such measure can be found in
the Company's most recent Annual Report on Form 10-K filed with the
Securities and Exchange Commission, as well as in Note 10 to the
attached data tables.
Contacts:
|
Todd Hornbeck,
CEO
|
|
Jim Harp,
CFO
|
|
Hornbeck Offshore
Services
|
|
985-727-6802
|
|
|
|
Ken Dennard, Managing
Partner
|
|
Dennard-Lascar /
713-529-6600
|
Hornbeck Offshore
Services, Inc. and Subsidiaries
|
Unaudited
Consolidated Statements of Operations
|
(in thousands,
except Other Operating and Per Share Data)
|
|
|
|
|
|
|
|
|
|
Statement of
Operations (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Three Months
Ended
|
|
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
|
|
2017
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
44,079
|
|
$
41,879
|
|
$
76,820
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
Operating expenses
|
27,935
|
|
27,524
|
|
40,429
|
|
|
|
Depreciation and amortization
|
28,401
|
|
28,583
|
|
28,452
|
|
|
|
General and administrative expenses
|
14,242
|
|
13,274
|
|
8,674
|
|
|
|
|
70,578
|
|
69,381
|
|
77,555
|
|
|
|
Gain
(loss) on sale of assets
|
18
|
|
18
|
|
(45)
|
|
|
|
Operating loss
|
(26,481)
|
|
(27,484)
|
|
(780)
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest income
|
401
|
|
326
|
|
377
|
|
|
|
Interest expense
|
(13,809)
|
|
(13,787)
|
|
(11,064)
|
|
|
|
Other income (expense), net 1
|
(323)
|
|
4
|
|
504
|
|
|
|
|
(13,731)
|
|
(13,457)
|
|
(10,183)
|
|
|
|
Loss before income
taxes
|
(40,212)
|
|
(40,941)
|
|
(10,963)
|
|
|
|
Income tax
benefit
|
(12,314)
|
|
(21,698)
|
|
(3,449)
|
|
|
|
Net loss
|
$
(27,898)
|
|
$
(19,243)
|
|
$
(7,514)
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Basic loss per common
share
|
$
(0.76)
|
|
$
(0.53)
|
|
$
(0.21)
|
|
|
|
Diluted loss per
common share
|
$
(0.76)
|
|
$
(0.53)
|
|
$
(0.21)
|
|
|
|
Weighted average
basic shares outstanding
|
36,596
|
|
36,375
|
|
36,085
|
|
|
|
Weighted average
diluted shares outstanding 2
|
36,596
|
|
36,375
|
|
36,085
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operating
Data (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
|
|
2017
|
|
2016
|
|
2016
|
|
|
|
Offshore Supply
Vessels:
|
|
|
|
|
|
|
|
|
Average number of new
generation OSVs 3
|
62.0
|
|
62.0
|
|
61.6
|
|
|
|
Average number of
active new generation OSVs 4
|
18.1
|
|
16.7
|
|
27.9
|
|
|
|
Average new
generation OSV fleet capacity (deadweight) 3
|
220,030
|
|
219,389
|
|
219,398
|
|
|
|
Average new
generation OSV capacity (deadweight)
|
3,549
|
|
3,539
|
|
3,561
|
|
|
|
Average new
generation utilization rate 5
|
19.7%
|
|
20.0%
|
|
35.1%
|
|
|
|
Effective new
generation utilization rate 6
|
67.5%
|
|
74.5%
|
|
77.4%
|
|
|
|
Average new
generation dayrate 7
|
$
27,767
|
|
$
24,212
|
|
$
24,601
|
|
|
|
Effective dayrate
8
|
$
5,470
|
|
$
4,842
|
|
$
8,635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data
(unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
March 31,
|
|
As of
December 31,
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
209,061
|
|
$
217,027
|
|
|
|
Working
capital
|
210,357
|
|
225,412
|
|
|
|
Property, plant and
equipment, net
|
2,560,426
|
|
2,578,388
|
|
|
|
Total
assets
|
2,845,894
|
|
2,878,275
|
|
|
|
Total long-term
debt
|
1,087,164
|
|
1,083,710
|
|
|
|
Stockholders'
equity
|
1,381,617
|
|
1,402,996
|
|
|
|
|
|
|
|
|
|
|
Cash Flow Data
(unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
March
31,
|
|
March
31,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by
(used in) operating activities
|
$
(3,619)
|
|
$
39,703
|
|
|
|
|
|
Cash used in
investing activities
|
(3,547)
|
|
(43,854)
|
|
|
|
|
|
Cash used in
financing activities
|
(573)
|
|
(450)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hornbeck Offshore
Services, Inc. and Subsidiaries
|
Unaudited Other
Financial Data
|
(in thousands,
except Financial Ratios)
|
|
|
|
|
|
|
|
|
Other Financial
Data (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
|
2017
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Vessel
revenues
|
$
35,849
|
|
$
33,266
|
|
$
68,216
|
|
|
Non-vessel revenues
9
|
8,230
|
|
8,613
|
|
8,604
|
|
|
Total
revenues
|
$
44,079
|
|
$
41,879
|
|
$
76,820
|
|
|
Operating
loss
|
$
(26,481)
|
|
$
(27,484)
|
|
$
(780)
|
|
|
Operating
deficit
|
(60.1%)
|
|
(65.6%)
|
|
(1.0%)
|
|
|
Components
of EBITDA 10
|
|
|
|
|
|
|
|
Net
loss
|
$
(27,898)
|
|
$
(19,243)
|
|
$
(7,514)
|
|
|
Interest
expense, net
|
13,408
|
|
13,461
|
|
10,687
|
|
|
Income tax
benefit
|
(12,314)
|
|
(21,698)
|
|
(3,449)
|
|
|
Depreciation
|
24,677
|
|
24,773
|
|
22,173
|
|
|
Amortization
|
3,724
|
|
3,810
|
|
6,279
|
|
|
EBITDA
10
|
$
1,597
|
|
$
1,103
|
|
$
28,176
|
|
|
Adjustments
to EBITDA
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
2,042
|
|
3,426
|
|
1,172
|
|
|
Interest
income
|
401
|
|
326
|
|
377
|
|
|
Adjusted
EBITDA 10
|
$
4,040
|
|
$
4,855
|
|
$
29,725
|
|
|
EBITDA
10 Reconciliation to GAAP:
|
|
|
|
|
|
|
|
EBITDA
10
|
$
1,597
|
|
$
1,103
|
|
$
28,176
|
|
|
Cash paid for
deferred drydocking charges
|
(3,129)
|
|
(764)
|
|
(1,207)
|
|
|
Cash paid for
interest
|
(13,756)
|
|
(11,281)
|
|
(13,787)
|
|
|
Cash paid for
taxes
|
(349)
|
|
(1,044)
|
|
(1,752)
|
|
|
Changes in
working capital
|
6,246
|
|
4,955
|
|
27,159
|
|
|
Stock-based
compensation expense
|
2,042
|
|
3,426
|
|
1,172
|
|
|
(Gain) loss on
sale of assets
|
(18)
|
|
(18)
|
|
45
|
|
|
Changes in
other, net
|
3,748
|
|
(38)
|
|
(103)
|
|
|
Net cash
provided by (used in) operating activities
|
$
(3,619)
|
|
$
(3,661)
|
|
$
39,703
|
|
|
|
|
|
|
|
|
|
|
Hornbeck Offshore
Services, Inc. and Subsidiaries
Unaudited Other Financial Data
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures and Drydock Downtime Data (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical
Data:
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
|
2017
|
|
2016
|
|
2016
|
|
|
Drydock
Downtime:
|
|
|
|
|
|
|
|
New-Generation
OSVs
|
|
|
|
|
|
|
|
Number of
vessels commencing drydock activities
|
2.0
|
|
1.0
|
|
2.0
|
|
|
Commercial
downtime (in days)
|
61
|
|
22
|
|
63
|
|
|
|
|
|
|
|
|
|
|
MPSVs
|
|
|
|
|
|
|
|
Number of
vessels commencing drydock activities
|
2.0
|
|
1.0
|
|
-
|
|
|
Commercial
downtime (in days)
|
19
|
|
26
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Commercial-related
Downtime11:
|
|
|
|
|
|
|
|
New-Generation
OSVs
|
|
|
|
|
|
|
|
Number of
vessels commencing commercial-related downtime
|
-
|
|
1.0
|
|
-
|
|
|
Commercial
downtime (in days)
|
-
|
|
36
|
|
-
|
|
|
|
|
|
|
|
|
|
|
MPSVs
|
|
|
|
|
|
|
|
Number of
vessels commencing commercial-related downtime
|
-
|
|
1.0
|
|
1.0
|
|
|
Commercial
downtime (in days)
|
-
|
|
40
|
|
149
|
|
|
|
|
|
|
|
|
|
|
Maintenance and
Other Capital Expenditures (in thousands):
|
|
|
|
|
|
|
Maintenance
Capital Expenditures:
|
|
|
|
|
|
|
|
Deferred
drydocking charges
|
$
3,129
|
|
$
764
|
|
$
1,207
|
|
|
Other vessel
capital improvements
|
103
|
|
67
|
|
3,519
|
|
|
|
3,232
|
|
831
|
|
4,726
|
|
|
Other Capital
Expenditures:
|
|
|
|
|
|
|
|
Commercial-related vessel improvements
|
58
|
|
1,916
|
|
6,829
|
|
|
Non-vessel
related capital expenditures
|
130
|
|
155
|
|
266
|
|
|
|
188
|
|
2,071
|
|
7,095
|
|
|
|
$
3,420
|
|
$
2,902
|
|
$
11,821
|
|
|
Growth Capital
Expenditures (in thousands):
|
|
|
|
|
|
|
|
OSV newbuild
program #5
|
$
1,302
|
|
$
1,091
|
|
$
29,507
|
|
|
|
|
|
|
|
|
|
|
Forecasted
Data12:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q
2017A
|
|
2Q
2017E
|
|
3Q
2017E
|
|
4Q
2017E
|
|
2017E
|
|
2018E
|
|
Drydock
Downtime:
|
|
|
|
|
|
|
|
|
|
|
|
|
New-Generation
OSVs
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
vessels commencing drydock activities
|
2.0
|
|
2.0
|
|
3.0
|
|
3.0
|
|
10.0
|
|
10.0
|
|
Commercial
downtime (in days)
|
61
|
|
25
|
|
43
|
|
33
|
|
162
|
|
228
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MPSVs
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
vessels commencing drydock activities
|
2.0
|
|
-
|
|
-
|
|
-
|
|
2.0
|
|
-
|
|
Commercial
downtime (in days)
|
19
|
|
25
|
|
-
|
|
-
|
|
44
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial-related
Downtime11:
|
|
|
|
|
|
|
|
|
|
|
|
|
New-Generation
OSVs
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
vessels commencing commercial-related downtime
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Commercial
downtime (in days)
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MPSVs
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
vessels commencing commercial-related downtime
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Commercial
downtime (in days)
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance and
Other Capital Expenditures (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance
Capital Expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
drydocking charges
|
$
3.1
|
|
$
3.1
|
|
$
1.4
|
|
$
0.8
|
|
$
8.4
|
|
$13.9
|
|
Other vessel
capital improvements
|
0.1
|
|
0.5
|
|
0.2
|
|
0.1
|
|
0.9
|
|
0.6
|
|
|
3.2
|
|
3.6
|
|
1.6
|
|
0.9
|
|
9.3
|
|
14.5
|
|
Other Capital
Expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial-related vessel improvements
|
0.1
|
|
0.2
|
|
-
|
|
-
|
|
0.3
|
|
-
|
|
Non-vessel
related capital expenditures
|
0.1
|
|
0.5
|
|
0.2
|
|
0.1
|
|
0.9
|
|
1.0
|
|
|
0.2
|
|
0.7
|
|
0.2
|
|
0.1
|
|
1.2
|
|
1.0
|
|
|
$
3.4
|
|
$
4.3
|
|
$
1.8
|
|
$
1.0
|
|
$
10.5
|
|
$
15.5
|
|
Growth Capital
Expenditures (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
OSV newbuild
program #5
|
$
1.3
|
|
$
4.6
|
|
$
9.7
|
|
$
10.5
|
|
$
26.1
|
|
$
44.9
|
|
Hornbeck Offshore
Services, Inc. and Subsidiaries
|
Unaudited Other
Fleet and Financial Data
|
(in millions,
except Average Vessels, Contract Backlog and Tax
Rate)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Guidance
of Selected Data (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q
2017E
|
|
Full-Year
2017E
|
|
Full-Year
2018E
|
|
|
|
|
|
|
|
|
Avg
Vessels
|
|
Avg
Vessels
|
|
Avg
Vessels
|
|
|
|
|
|
|
|
Fleet Data (as of
3-May-2017):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New generation OSVs -
Active
|
18.9
|
|
17.2
|
|
16.0
|
|
|
|
|
|
|
|
New generation OSVs -
Stacked 13
|
43.1
|
|
44.8
|
|
46.0
|
|
|
|
|
|
|
|
New generation OSVs -
Total
|
62.0
|
|
62.0
|
|
62.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New generation MPSVs -
Active
|
6.2
|
|
6.1
|
|
7.3
|
|
|
|
|
|
|
|
New generation MPSVs -
Stacked 14
|
1.8
|
|
1.9
|
|
2.0
|
|
|
|
|
|
|
|
New generation MPSVs -
Total
|
8.0
|
|
8.0
|
|
9.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
70.0
|
|
70.0
|
|
71.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q 2017E
Range
|
|
Full-Year
2017E Range
|
|
|
Cost
Data:
|
Low15
|
|
High
15
|
|
Low15
|
|
High
15
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$
30.0
|
|
$
35.0
|
|
$
115.0
|
|
$
130.0
|
|
|
General and administrative
expenses
|
$
10.5
|
|
$
11.5
|
|
$
45.0
|
|
$
50.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q
2017A
|
|
2Q
2017E
|
|
3Q
2017E
|
|
4Q
2017E
|
|
2017E
|
|
2018E
|
|
Other Financial
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
$
24.7
|
|
$
24.7
|
|
$
24.7
|
|
$
24.6
|
|
$
98.7
|
|
$
102.2
|
|
Amortization
|
3.7
|
|
3.6
|
|
2.7
|
|
2.3
|
|
12.3
|
|
9.1
|
|
Interest
expense, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
$
13.5
|
|
$
13.5
|
|
$
13.5
|
|
$
13.5
|
|
$
54.0
|
|
$
54.0
|
|
Incremental
non-cash OID interest expense 16
|
2.7
|
|
2.8
|
|
2.8
|
|
2.8
|
|
11.1
|
|
11.8
|
|
Capitalized
interest
|
(2.4)
|
|
(2.3)
|
|
(2.4)
|
|
(2.6)
|
|
(9.7)
|
|
(4.6)
|
|
Interest
income
|
(0.4)
|
|
(0.2)
|
|
(0.2)
|
|
(0.2)
|
|
(1.0)
|
|
(0.5)
|
|
Total interest
expense, net
|
$
13.4
|
|
$
13.8
|
|
$
13.7
|
|
$
13.5
|
|
$
54.4
|
|
$
60.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
rate
|
30.6%
|
|
35.0%
|
|
35.0%
|
|
35.0%
|
|
34.0%
|
|
37.0%
|
|
Cash income
taxes
|
$
0.3
|
|
$
0.3
|
|
$
0.3
|
|
$
0.3
|
|
$
1.2
|
|
$
2.1
|
|
Cash interest
expense
|
13.8
|
|
11.3
|
|
13.8
|
|
11.3
|
|
50.2
|
|
50.2
|
|
Weighted
average basic shares outstanding
|
36.6
|
|
36.8
|
|
37.0
|
|
37.0
|
|
36.8
|
|
37.5
|
|
Weighted
average diluted shares outstanding 17
|
37.4
|
|
37.6
|
|
37.8
|
|
37.8
|
|
37.7
|
|
38.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Represents other
income and expenses, including equity in income from investments
and foreign currency transaction gains or losses.
|
|
|
2
|
Due to net losses for
the three months ended March 31, 2017, December 31, 2016, and March
31, 2016, the Company excluded the dilutive effect of equity awards
representing the rights to acquire 978, 981 and 939 shares of
common stock, respectively, because the effect was anti-dilutive.
As of March 31, 2017, December 31, 2016, and March 31, 2016,
the 1.500% convertible senior notes were not dilutive, as the
average price of the Company's stock was less than the effective
conversion price of $68.53 for such notes.
|
|
|
3
|
The Company owned 62
new generation OSVs as of March 31, 2017. Excluded from this
data are eight MPSVs owned by the Company.
|
|
|
4
|
In response to weak
market conditions, the Company elected to stack certain of its new
generation OSVs on various dates since October 1, 2014.
Active new generation OSVs represent vessels that are immediately
available for service during each respective period.
|
|
|
5
|
Average utilization
rates are based on a 365-day year for all active and stacked
vessels. Vessels are considered utilized when they are
generating revenues.
|
|
|
6
|
Effective utilization
rate is based on a denominator comprised only of vessel-days
available for service by the active fleet, which excludes the
impact of stacked vessel days.
|
|
|
7
|
Average new
generation OSV dayrates represent average revenue per day, which
includes charter hire, crewing services, and net brokerage
revenues, based on the number of days during the period that the
OSVs generated revenues.
|
|
|
8
|
Effective dayrate
represents the average dayrate multiplied by the average new
generation utilization rate for the respective period.
|
|
|
9
|
Represents revenues
from shore-based operations, vessel-management services, including
from the O&M contract with the U.S. Navy, and ancillary
equipment rentals, including from ROVs.
|
|
|
10
|
Non-GAAP Financial
Measure
|
|
|
|
The Company discloses
and discusses EBITDA as a non-GAAP financial measure in its public
releases, including quarterly earnings releases, investor
conference calls and other filings with the Securities and Exchange
Commission. The Company defines EBITDA as earnings (net
income) before interest, income taxes, depreciation and
amortization. The Company's measure of EBITDA may not be
comparable to similarly titled measures presented by other
companies. Other companies may calculate EBITDA differently
than the Company, which may limit its usefulness as a comparative
measure.
|
|
|
|
The Company views
EBITDA primarily as a liquidity measure and, as such, believes that
the GAAP financial measure most directly comparable to it is cash
flows provided by operating activities. 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 flows provided by
operating, 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 the Company's financial statements
as a supplemental financial measure that, when viewed with GAAP
results and the accompanying reconciliations, the Company believes
provides additional information that is useful to gain an
understanding of the factors and trends affecting its ability to
service debt, pay deferred taxes and fund drydocking charges and
other maintenance capital expenditures. The Company also
believes the disclosure of EBITDA helps investors meaningfully
evaluate and compare its 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) as a
significant criteria for annual incentive cash bonuses paid to the
Company's executive officers and other shore-based employees; (iii)
to compare to the EBITDA of other companies when evaluating
potential acquisitions; and (iv) to assess the Company's ability to
service existing fixed charges and incur additional
indebtedness.
|
|
|
|
In addition, the
Company also makes certain adjustments, as applicable, to EBITDA
for losses on early extinguishment of debt, stock-based
compensation expense and interest income, or Adjusted EBITDA, to
internally evaluate its performance based on the computation of
ratios used in certain financial covenants of its credit agreements
with various lenders. The Company believes that these ratios
can be material components of financial covenants and, when
applicable, failure to comply with such covenants could result in
the acceleration of indebtedness or the imposition of restrictions
on the Company's financial flexibility.
|
|
|
|
Set forth below are
the material limitations associated with using EBITDA as a non-GAAP
financial measure compared to cash flows provided by operating
activities.
|
|
|
|
|
•EBITDA does not reflect the future capital
expenditure requirements that may be necessary to replace the
Company's existing vessels as a result of normal wear and
tear,
|
|
|
|
|
|
• EBITDA does not reflect the interest, future
principal payments and other financing-related charges necessary to
service the debt that the Company has incurred in acquiring and
constructing its vessels,
|
|
|
|
|
|
• EBITDA does not reflect the deferred income
taxes that the Company will eventually have to pay once it is no
longer in an overall tax net operating loss position, as
applicable, and
|
|
|
|
|
|
• EBITDA does not reflect changes in the
Company's net working capital position.
|
|
|
|
|
Management
compensates for the above-described limitations in using EBITDA as
a non-GAAP financial measure by only using EBITDA to supplement the
Company's GAAP results.
|
|
|
11
|
Commercial-related
Downtime results from commercial-related vessel improvements, such
as the addition of cranes, ROVs, helidecks, living quarters and
other specialized vessel equipment; the modification of vessel
capacities or capabilities, such as DP upgrades and mid-body
extensions, which costs are typically included in and offset, in
whole or in part, by higher dayrates charged to customers; and the
speculative relocation of vessels from one geographic market to
another.
|
|
|
12
|
The capital
expenditure amounts included in this table are anticipated cash
outlays before the allocation of construction period interest, as
applicable.
|
|
|
13
|
As of May 3, 2017,
the Company's inactive fleet of 41 new generation OSVs that were
"stacked" was comprised of the following: eleven 200 class OSVs,
twenty-two 240 class OSVs, three 265 class OSVs and five 300 class
OSVs. In addition, the Company plans to stack four 240 class
OSVs during the second quarter of 2017 and one additional 200 class
OSV during the third quarter of 2017.
|
|
|
14
|
As of May 3, 2017,
the Company's inactive fleet of two new generation MPSVs that were
"stacked" was comprised of the following: one 300 class MPSV and
one 430 class MPSV.
|
|
|
15
|
The "low" and "high"
ends of the guidance ranges set forth in this table are not
intended to cover unexpected variations from currently anticipated
market conditions. These ranges provide only a reasonable
deviation from the conditions that are expected to
occur.
|
|
|
16
|
Represents
incremental imputed non-cash OID interest expense required by
accounting standards pertaining to the Company's 1.500% convertible
senior notes due 2019.
|
|
|
17
|
Projected
weighted-average diluted shares do not reflect any potential
dilution resulting from the Company's 1.500% convertible senior
notes. Warrants related to the Company's 1.500% convertible
senior notes become dilutive when the average price of the
Company's stock exceeds the effective conversion price for such
notes of $68.53.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/hornbeck-offshore-announces-first-quarter-2017-results-300450987.html
SOURCE Hornbeck Offshore Services, Inc.