COVINGTON, La., Nov. 1, 2017 /PRNewswire/ -- Hornbeck Offshore
Services, Inc. (NYSE:HOS) announced today results for the third
quarter ended September 30, 2017.
Following is an executive summary for this period and the
Company's future outlook:
- 3Q2017 diluted EPS was $(0.51), an improvement of $0.02, or 4%, from 2Q2017 diluted EPS of
$(0.53)
- 3Q2017 net loss was $(19.0)
million, an improvement of $0.5
million, or 3%, from 2Q2017 net loss of $(19.5) million
- 3Q2017 EBITDA was $10.6
million, a decrease of $1.6
million, or 13%, from 2Q2017 EBITDA of $12.2 million
- 3Q2017 average new gen OSV dayrates were $18,483, a sequential increase of $1,281, or 7%
- 3Q2017 effective new gen OSV dayrates were $4,861, a sequential increase of $1,025, or 27%
- 3Q2017 utilization of the Company's new gen OSV fleet was
26%, up from 22% sequentially
- 3Q2017 effective utilization of the Company's active new gen
OSVs was 86%, up from 67% sequentially
- The Company currently has 43 OSVs stacked and expects to
have a total of 45 OSVs stacked by the end of 4Q2017
- Quarter-end cash was $113
million, down from $125
million sequentially, with $66
million of newbuild growth capex remaining to be
funded
- 3Q2017 total liquidity (cash and credit availability) of
$317 million represents a decrease of
$12 million, or 4%, from
2Q2017
The Company recorded a net loss for the third quarter of 2017 of
$(19.0) million, or $(0.51) per diluted share, compared to
$(16.5) million, or $(0.45) per diluted share, for the year-ago
quarter; and $(19.5) million, or
$(0.53) per diluted share, for the
second quarter of 2017. Included in the Company's second
quarter 2017 results is a $15.5
million ($10.5 million
after-tax or $0.29 per diluted share)
net gain on early extinguishment of debt resulting from the
repurchase of a portion of the Company's 1.500% Convertible Senior
Notes due 2019 and 5.875% Senior Notes due 2020, offset in part by
the write-off of certain related deal costs, unamortized financing
costs and original issue discount. Excluding the impact of
such net gain on early extinguishment of debt, net loss and diluted
EPS for the second quarter of 2017 would have been $(30.0) million and $(0.82) per share, respectively. After
adjusting for these reconciling items included in the second
quarter of 2017, the third quarter net loss and diluted EPS would
have been $11.0 million and
$0.31 per share higher than the
sequential quarter, respectively. Diluted common shares for
the third quarter of 2017 were 37.0 million compared to 36.3
million and 36.8 million for the third quarter of 2016 and the
second quarter of 2017, respectively. GAAP requires the use
of basic shares outstanding for diluted EPS when reporting a net
loss. EBITDA for the third quarter of 2017 was $10.6 million compared to $15.2 million for the third quarter of 2016 and
$12.2 million for the second quarter
of 2017. Excluding the net gain on early extinguishment of
debt in the second quarter of 2017, sequential EBITDA would have
been $(3.3) million. For additional
information regarding EBITDA as a non-GAAP financial measure,
please see Note 10 to the accompanying data tables.
Revenues. Revenues were $53.7 million for the third quarter of 2017, an
increase of $1.8 million, or 3.5%,
from $51.9 million for the third
quarter of 2016; and an increase of $16.3
million, or 43.6%, from $37.4
million for the second quarter of 2017. The
year-over-year increase in revenues was primarily due to improved
market conditions for the Company's MPSVs, partially offset by weak
market conditions worldwide and the repricing or stacking of four
OSVs, which concluded long-term contracts that were working at
dayrates above current market levels. The sequential increase
in revenues was primarily attributable to higher average dayrates
for our MPSV fleet and seasonally higher utilization across the
Company's active fleet of OSVs in the GoM. As of September 30, 2017, the Company had 44 OSVs
stacked. For the three months ended September 30, 2017, the Company had an average of
43.0 vessels stacked compared to 44.1 vessels stacked in the
prior-year quarter and 42.5 vessels stacked in the sequential
quarter. Operating loss was $(16.7)
million, or (31.1)% of revenues, for the third quarter of
2017 compared to an operating loss of $(14.4) million, or (27.8)% of revenues, for the
prior-year quarter; and an operating loss of $(31.3) million, or (83.7)% of revenues, for the
second quarter of 2017. Average new generation OSV dayrates
for the third quarter of 2017 were $18,483 compared to $25,639 for the same period in 2016 and
$17,202 for the second quarter of
2017. New generation OSV utilization was 26.3% for the third
quarter of 2017 compared to 22.0% for the year-ago quarter and
22.3% for the sequential quarter. Excluding stacked vessel
days, the Company's new generation OSV effective utilization was
85.8%, 76.3% and 66.6% for the same periods, respectively.
Utilization-adjusted, or effective, new generation OSV dayrates for
the third quarter of 2017 were $4,861
compared to $5,641 for the same
period in 2016 and $3,836 for the
second quarter of 2017.
Operating Expenses. Operating
expenses were $30.1 million for the
third quarter of 2017, an increase of $0.7
million, or 2.4%, from $29.4
million for the third quarter of 2016; and a decrease of
$1.3 million, or 4.1%, from
$31.4 million for the second quarter
of 2017. The year-over-year increase in operating expenses
was primarily due to a higher average number of active vessels in
the Company's fleet. The sequential decrease in operating
expenses was primarily due to lower maintenance and repair
expenses.
General and Administrative ("G&A").
G&A expense was $12.9
million for the third quarter of 2017 compared to
$9.0 million for the third quarter of
2016; and $9.4 million for the second
quarter of 2017. The year-over-year increase in G&A
expense was primarily attributable to higher professional fees
related to the Company's on-going liability management activities,
short-term incentive compensation, long-term incentive compensation
and bad debt expense. The sequential increase in G&A expense
was primarily due to an increase in fees associated with the
Company's on-going liability management activities and higher
long-term incentive compensation expense. Long-term incentive
compensation was higher than the prior-year period and sequential
quarter due to a "mark to market" adjustment on cash-settled awards
to reflect the increase in the Company's stock price during the
three months ended September 30,
2017.
Depreciation and Amortization. Depreciation
and amortization expense was $27.2
million for the third quarter of 2017, or $0.9 million and $0.8
million lower than the year-ago quarter and sequential
quarter, respectively. Depreciation increased by $1.2 million over the year-ago quarter primarily
due to the addition of two vessels that were placed in service
under the Company's fifth OSV newbuild program since June 30, 2016. The depreciation increase
was more than offset by a decrease in amortization expense of
$2.1 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
$12.0 million during the third
quarter of 2017, or $0.9 million
lower than the prior-year quarter. The decrease was primarily
due to the write-off of fees associated with the amendment to the
Company's revolving credit facility during the year-ago period and
lower interest expense associated with the debt exchange and
termination of the then-existing credit facility that was completed
during the sequential quarter. These favorable differences
were partially offset by a decrease in capitalized interest during
the three months ended September 30,
2017. The Company recorded $2.7
million of capitalized construction period interest, or
roughly 18% of its total interest costs, for the third quarter of
2017 compared to $4.2 million, or
roughly 25% of its total interest costs, for the year-ago
quarter.
Nine Month Results
Revenue for the first nine months of 2017 decreased 25.9% to
$135.2 million compared to
$182.4 million for the same period in
2016. Operating loss was $(74.5)
million, or (55.1)% of revenues, for the first nine months
of 2017 compared to an operating loss of $(36.7) million, or (20.1)% of revenues, for the
prior-year period. Net loss for the first nine months of 2017
increased $21.7 million to a net loss
of $(66.3) million, or $(1.80) per diluted share, compared to a net loss
of $(44.6) million, or $(1.23) per diluted share, for the first nine
months of 2016. EBITDA for the first nine months of 2017
decreased 51.5% to $24.4 million
compared to $50.3 million for the
first nine months of 2016. Included in the Company's results
for the nine months ended September 30,
2017 are revenues of $9.4
million for a vessel redelivery fee and $3.8 million of additional bad debt expense in
the first quarter of 2017 and a $15.5
million net gain on early extinguishment of debt in the
second quarter of 2017. Excluding the impact of these
reconciling items, net loss, diluted EPS and EBITDA for the first
nine months of 2017 would have been $(80.7)
million, $(2.19) per share and
$3.3 million, respectively. The
year-over-year decrease in vessel revenues primarily resulted from
soft market conditions in the GoM, which led to the Company's
decision to stack an average of 3.5 incremental vessels on various
dates from December 2015 through
September 30, 2017. For the
nine months ended September 30, 2017,
the Company had an average of 43.4 vessels stacked compared to 39.9
vessels stacked in the prior-year period.
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 the 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
September 30, 2017, the Company's
fleet of owned vessels 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 43.2 new generation OSVs and 0.8 MPSVs projected to be
stacked during fiscal 2017, the Company's active fleet for 2017 is
expected to be comprised of an average of 18.8 new generation OSVs
and 7.2 MPSVs. With an assumed average of 45.0 new generation
OSVs and no MPSVs projected to be stacked during fiscal 2018, the
Company's active fleet for 2018 is expected to be comprised of an
average of 17.0 new generation OSVs and 8.6 MPSVs.
Operating Expenses. Aggregate
cash operating expenses are projected to be in the range of
$30.0 million to $35.0 million for
the fourth quarter of 2017, and $119.4
million to $124.4 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 since the fourth quarter of 2014 due to
prevailing market conditions, including, among other actions, the
stacking of new generation OSVs and MPSVs on various dates from
October 1, 2014 through September 30, 2017, as well as company-wide
headcount reductions and across-the-board pay-cuts for shoreside
and vessel personnel. Since the end of the third quarter of
2017, the Company has activated one 240 class OSV.
Additionally, the Company plans to stack two 240 class OSVs during
the remainder of the fourth 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 $11.0 million to $13.0 million for the fourth
quarter of 2017, and $47.6 million to $49.6
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
fourth quarter of 2017 are projected to be $24.7 million, $2.2
million, $12.0 million,
$(10.1) million, $12.6 million, 37.0 million and 37.9 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 32.0% and 34.0% for fiscal 2017 and fiscal
2018, respectively.
Capital Expenditures Outlook
Update on OSV Newbuild Program
#5. The two remaining vessels
under the Company's nearly completed 24-vessel domestic newbuild
program, which are 400 class MPSVs, are currently expected to be
delivered in the third and fourth quarters of 2018,
respectively.
The Company owns 62 new generation OSVs and eight MPSVs as of
September 30, 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, 8.6 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 $10.3
million and $60.7 million are
expected to be incurred in the full fiscal years 2017 and 2018,
respectively. From the inception of this program through
September 30, 2017, the Company has
incurred $1,269.5 million, or 95.1%,
of total expected project costs, including $2.6 million that was spent during the third
quarter of 2017. The Company expects to incur newbuild
project costs of $4.8 million during
the fourth 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
$10.5 million and $16.1 million for the full fiscal years 2017 and
2018, respectively. These cash outlays are expected to be
incurred over approximately 243 and 217 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 $3.3
million and $1.2 million,
respectively, for the full fiscal years 2017 and 2018,
respectively. These cash outlays are expected to be incurred
over approximately 36 days of aggregate commercial downtime in
2017, during which the vessels will not earn revenue.
Liquidity Outlook
As of September 30, 2017, the
Company's total liquidity (cash and credit availability) was
$316.5 million, comprised of
$112.8 million of cash and
$203.7 million of availability under
the First-Lien Credit Facility, which represents a decrease of
$12.0 million, or 4%, from the end of
the second quarter. The Company projects that, even with the
currently depressed operating levels, cash generated from
operations together with cash on hand and availability under the
First-Lien Credit Facility should be sufficient to fund its
operations and commitments through at least December 31, 2019. However, absent a
significant recovery of market conditions such that cash flow from
operations were to increase materially from projected levels and/or
further management of its funded debt obligations, the Company does
not currently expect to have sufficient liquidity to repay the full
amount of its 5.875% Senior Notes and 5.000% Senior Notes as they
mature in fiscal years 2020 and 2021, respectively. 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 third
quarter 2017 financial results and recent developments at
10:00 a.m. Eastern (9:00 a.m. Central) tomorrow, November 2, 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
November 16, 2017, and may be
accessed by calling (201) 612-7415 and using the pass code
13671917#.
Attached Data Tables
The Company has posted an electronic version of the following
four pages of data tables, which are downloadable in Microsoft
Excelâ„¢ 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 in the U.S.
and worldwide; 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;
disruption in the timing and/or extent of 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; 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 certain 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 lenders
to provide funding under the Company's New Credit Facility, if and
when 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 existing indebtedness. 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)
|
|
|
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|
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Statement of
Operations (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Three Months
Ended
|
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Nine Months
Ended
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
|
2017
|
|
2017
|
|
2016
|
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2017
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2016
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|
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Revenues
|
$
53,666
|
|
$
37,426
|
|
$
51,927
|
|
$
135,171
|
|
$
182,420
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
30,082
|
|
31,368
|
|
29,375
|
|
89,385
|
|
104,134
|
|
|
Depreciation and amortization
|
27,155
|
|
27,945
|
|
28,047
|
|
83,501
|
|
84,973
|
|
|
General and administrative expenses
|
12,899
|
|
9,432
|
|
9,031
|
|
36,573
|
|
30,084
|
|
|
|
70,136
|
|
68,745
|
|
66,453
|
|
209,459
|
|
219,191
|
|
|
Gain
(loss) on sale of assets
|
(197)
|
|
1
|
|
81
|
|
(178)
|
|
36
|
|
|
Operating loss
|
(16,667)
|
|
(31,318)
|
|
(14,445)
|
|
(74,466)
|
|
(36,735)
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
Gain
on early extinguishment of debt
|
-
|
|
15,478
|
|
-
|
|
15,478
|
|
-
|
|
|
Interest income
|
447
|
|
464
|
|
401
|
|
1,312
|
|
1,164
|
|
|
Interest expense
|
(11,956)
|
|
(13,429)
|
|
(12,820)
|
|
(39,194)
|
|
(34,888)
|
|
|
Other income (expense), net 1
|
106
|
|
54
|
|
1,592
|
|
(163)
|
|
2,048
|
|
|
|
(11,403)
|
|
2,567
|
|
(10,827)
|
|
(22,567)
|
|
(31,676)
|
|
|
Loss before income
taxes
|
(28,070)
|
|
(28,751)
|
|
(25,272)
|
|
(97,033)
|
|
(68,411)
|
|
|
Income tax
benefit
|
(9,120)
|
|
(9,262)
|
|
(8,769)
|
|
(30,696)
|
|
(23,808)
|
|
|
Net loss
|
$
(18,950)
|
|
$
(19,489)
|
|
$
(16,503)
|
|
$
(66,337)
|
|
$
(44,603)
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per common
share
|
$
(0.51)
|
|
$
(0.53)
|
|
$
(0.45)
|
|
$
(1.80)
|
|
$
(1.23)
|
|
|
Diluted loss per
common share
|
$
(0.51)
|
|
$
(0.53)
|
|
$
(0.45)
|
|
$
(1.80)
|
|
$
(1.23)
|
|
|
Weighted average
basic shares outstanding
|
37,013
|
|
36,769
|
|
36,338
|
|
36,794
|
|
36,205
|
|
|
Weighted average
diluted shares outstanding 2
|
37,013
|
|
36,769
|
|
36,338
|
|
36,794
|
|
36,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operating
Data (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
Offshore Supply
Vessels:
|
|
|
|
|
|
|
|
|
|
|
|
Average number of new
generation OSVs 3
|
62.0
|
|
62.0
|
|
62.0
|
|
62.0
|
|
61.9
|
|
|
Average number of active new
generation OSVs 4
|
19.0
|
|
20.7
|
|
17.9
|
|
19.6
|
|
22.0
|
|
|
Average new generation OSV
fleet capacity (deadweight) 3
|
220,172
|
|
220,172
|
|
221,629
|
|
220,172
|
|
220,885
|
|
|
Average new generation OSV
capacity (deadweight)
|
3,551
|
|
3,551
|
|
3,575
|
|
3,551
|
|
3,570
|
|
|
Average new generation
utilization rate 5
|
26.3%
|
|
22.3%
|
|
22.0%
|
|
22.8%
|
|
27.0%
|
|
|
Effective new generation
utilization rate 6
|
85.8%
|
|
66.6%
|
|
76.3%
|
|
71.9%
|
|
76.0%
|
|
|
Average new generation
dayrate 7
|
$
18,483
|
|
$
17,202
|
|
$
25,639
|
|
$
20,709
|
|
$
25,488
|
|
|
Effective dayrate
8
|
$
4,861
|
|
$
3,836
|
|
$
5,641
|
|
$
4,722
|
|
$
6,882
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data
(unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
September 30,
|
|
As of
December 31,
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
112,836
|
|
$
217,027
|
|
|
|
|
|
|
|
|
Working
capital
|
127,454
|
|
225,412
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
2,522,042
|
|
2,578,388
|
|
|
|
|
|
|
|
|
Total
assets
|
2,721,188
|
|
2,878,275
|
|
|
|
|
|
|
|
|
Total long-term
debt
|
1,014,031
|
|
1,083,710
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
1,345,681
|
|
1,402,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow Data
(unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by
(used in) operating activities
|
$
(29,203)
|
|
$
57,161
|
|
|
|
|
|
|
|
|
Cash used in
investing activities
|
(15,096)
|
|
(91,812)
|
|
|
|
|
|
|
|
|
Cash used in
financing activities
|
(59,661)
|
|
(820)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hornbeck Offshore
Services, Inc. and Subsidiaries
|
Unaudited Other
Financial Data
|
(in thousands,
except Financial Ratios)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial
Data (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vessel
revenues
|
$
45,637
|
|
$
29,339
|
|
$
43,670
|
|
$
110,825
|
|
$
157,170
|
|
|
Non-vessel revenues
9
|
8,029
|
|
8,087
|
|
8,257
|
|
24,346
|
|
25,250
|
|
|
Total
revenues
|
$
53,666
|
|
$
37,426
|
|
$
51,927
|
|
$
135,171
|
|
$
182,420
|
|
|
Operating
loss
|
$
(16,667)
|
|
$
(31,318)
|
|
$
(14,445)
|
|
$
(74,466)
|
|
$
(36,735)
|
|
|
Operating
deficit
|
(31.1%)
|
|
(83.7%)
|
|
(27.8%)
|
|
(55.1%)
|
|
(20.1%)
|
|
|
Components
of EBITDA 10
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
$
(18,950)
|
|
$
(19,489)
|
|
$
(16,503)
|
|
$
(66,337)
|
|
$
(44,603)
|
|
|
Interest
expense, net
|
11,509
|
|
12,965
|
|
12,419
|
|
37,882
|
|
33,724
|
|
|
Income tax
benefit
|
(9,120)
|
|
(9,262)
|
|
(8,769)
|
|
(30,696)
|
|
(23,808)
|
|
|
Depreciation
|
24,682
|
|
24,679
|
|
23,467
|
|
74,038
|
|
68,298
|
|
|
Amortization
|
2,473
|
|
3,266
|
|
4,580
|
|
9,463
|
|
16,675
|
|
|
EBITDA
10
|
$
10,594
|
|
$
12,159
|
|
$
15,194
|
|
$
24,350
|
|
$
50,286
|
|
|
Adjustments
to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
$
2,726
|
|
$
972
|
|
$
2,341
|
|
$
5,740
|
|
$
6,557
|
|
|
Interest
income
|
447
|
|
464
|
|
401
|
|
1,312
|
|
1,164
|
|
|
Adjusted
EBITDA 10
|
$
13,767
|
|
$
13,595
|
|
$
17,936
|
|
$
31,402
|
|
$
58,007
|
|
|
EBITDA
10 Reconciliation to GAAP:
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
10
|
$
10,594
|
|
$
12,159
|
|
$
15,194
|
|
$
24,350
|
|
$
50,286
|
|
|
Cash paid for
deferred drydocking charges
|
(995)
|
|
(2,826)
|
|
(897)
|
|
(6,950)
|
|
(3,214)
|
|
|
Cash paid for
interest
|
(13,829)
|
|
(12,443)
|
|
(13,784)
|
|
(40,028)
|
|
(38,871)
|
|
|
Cash paid for
taxes
|
(334)
|
|
(361)
|
|
(446)
|
|
(1,044)
|
|
(2,688)
|
|
|
Changes in
working capital
|
(3,336)
|
|
(2,813)
|
|
13,711
|
|
97
|
|
45,396
|
|
|
Stock-based
compensation expense
|
2,726
|
|
972
|
|
2,341
|
|
5,740
|
|
6,557
|
|
|
Gain on early
extinguishment of debt
|
-
|
|
(15,478)
|
|
-
|
|
(15,478)
|
|
-
|
|
|
(Gain) loss on
sale of assets
|
197
|
|
(1)
|
|
(81)
|
|
178
|
|
(36)
|
|
|
Changes in
other, net
|
(100)
|
|
284
|
|
(1,573)
|
|
3,932
|
|
(719)
|
|
|
Net cash
provided by (used in) operating activities
|
$
(5,077)
|
|
$
(20,507)
|
|
$
14,465
|
|
$
(29,203)
|
|
$
56,711
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hornbeck Offshore
Services, Inc. and Subsidiaries
|
Unaudited Other
Financial Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures and Drydock Downtime Data (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
Drydock
Downtime:
|
|
|
|
|
|
|
|
|
|
|
|
|
New-Generation
OSVs
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
vessels commencing drydock activities
|
2.0
|
|
5.0
|
|
-
|
|
9.0
|
|
3.0
|
|
|
|
Commercial
downtime (in days)
|
2
|
|
68
|
|
-
|
|
131
|
|
147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MPSVs
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
vessels commencing drydock activities
|
-
|
|
2.0
|
|
-
|
|
4.0
|
|
-
|
|
|
|
Commercial
downtime (in days)
|
-
|
|
29
|
|
-
|
|
48
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial-related
Downtime11:
|
|
|
|
|
|
|
|
|
|
|
|
|
New-Generation
OSVs
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
vessels commencing commercial-related downtime
|
-
|
|
-
|
|
-
|
|
-
|
|
1.0
|
|
|
|
Commercial
downtime (in days)
|
-
|
|
-
|
|
43
|
|
-
|
|
70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MPSVs
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
vessels commencing commercial-related downtime
|
-
|
|
-
|
|
-
|
|
-
|
|
2.0
|
|
|
|
Commercial
downtime (in days)
|
-
|
|
-
|
|
-
|
|
-
|
|
201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance and
Other Capital Expenditures (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance
Capital Expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
drydocking charges
|
$
995
|
|
$
2,826
|
|
$
897
|
|
$
6,950
|
|
$
3,214
|
|
|
|
Other vessel
capital improvements
|
654
|
|
183
|
|
(401)
|
|
940
|
|
5,272
|
|
|
|
|
1,649
|
|
3,009
|
|
496
|
|
7,890
|
|
8,486
|
|
|
|
Other Capital
Expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial-related vessel improvements
|
160
|
|
141
|
|
2,549
|
|
359
|
|
13,434
|
|
|
|
Non-vessel
related capital expenditures
|
920
|
|
418
|
|
139
|
|
1,468
|
|
414
|
|
|
|
|
1,080
|
|
559
|
|
2,688
|
|
1,827
|
|
13,848
|
|
|
|
|
$
2,729
|
|
$
3,568
|
|
$
3,184
|
|
$
9,717
|
|
$
22,334
|
|
|
|
Growth Capital
Expenditures (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
OSV newbuild
program #5
|
$
2,585
|
|
$
1,618
|
|
$
6,818
|
|
$
5,505
|
|
$
61,352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forecasted
Data12:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q
2017A
|
|
2Q
2017A
|
|
3Q
2017A
|
|
4Q
2017E
|
|
2017E
|
|
2018E
|
|
Drydock
Downtime:
|
|
|
|
|
|
|
|
|
|
|
|
|
New-Generation
OSVs
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
vessels commencing drydock activities
|
2.0
|
|
5.0
|
|
2.0
|
|
3.0
|
|
12.0
|
|
7.0
|
|
Commercial
downtime (in days)
|
61
|
|
68
|
|
2
|
|
64
|
|
195
|
|
175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MPSVs
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
vessels commencing drydock activities
|
2.0
|
|
2.0
|
|
-
|
|
-
|
|
4.0
|
|
1.0
|
|
Commercial
downtime (in days)
|
19
|
|
29
|
|
-
|
|
-
|
|
48
|
|
42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial-related
Downtime11:
|
|
|
|
|
|
|
|
|
|
|
|
|
New-Generation
OSVs
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
vessels commencing commercial-related downtime
|
-
|
|
-
|
|
-
|
|
1.0
|
|
1.0
|
|
-
|
|
Commercial
downtime (in days)
|
-
|
|
-
|
|
-
|
|
36
|
|
36
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
2.9
|
|
$
1.0
|
|
$
2.2
|
|
$
9.2
|
|
$
12.7
|
|
Other vessel
capital improvements
|
0.1
|
|
0.2
|
|
0.6
|
|
0.4
|
|
1.3
|
|
3.4
|
|
|
3.2
|
|
3.1
|
|
1.6
|
|
2.6
|
|
10.5
|
|
16.1
|
|
Other Capital
Expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial-related vessel improvements
|
0.1
|
|
0.1
|
|
0.2
|
|
1.4
|
|
1.8
|
|
0.2
|
|
Non-vessel
related capital expenditures
|
0.1
|
|
0.4
|
|
0.9
|
|
0.1
|
|
1.5
|
|
1.0
|
|
|
0.2
|
|
0.5
|
|
1.1
|
|
1.5
|
|
3.3
|
|
1.2
|
|
|
$
3.4
|
|
$
3.6
|
|
$
2.7
|
|
$
4.1
|
|
$
13.8
|
|
$
17.3
|
|
Growth Capital
Expenditures (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
OSV newbuild
program #5
|
$
1.3
|
|
$
1.6
|
|
$
2.6
|
|
$
4.8
|
|
$
10.3
|
|
$
60.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hornbeck Offshore
Services, Inc. and Subsidiaries
|
Unaudited Other
Fleet and Financial Data
|
(in millions,
except Average Vessels and Tax Rate)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Guidance
of Selected Data (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q
2017E
|
|
Full-Year
2017E
|
|
Full-Year
2018E
|
|
|
|
|
|
|
|
|
Avg
Vessels
|
|
Avg
Vessels
|
|
Avg
Vessels
|
|
|
|
|
|
|
|
Fleet Data (as of
1-Nov-2017):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New generation OSVs -
Active
|
17.5
|
|
18.8
|
|
17.0
|
|
|
|
|
|
|
|
New generation OSVs -
Stacked 13
|
44.5
|
|
43.2
|
|
45.0
|
|
|
|
|
|
|
|
New generation OSVs -
Total
|
62.0
|
|
62.0
|
|
62.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New generation MPSVs -
Active
|
8.0
|
|
7.2
|
|
8.6
|
|
|
|
|
|
|
|
New generation MPSVs -
Stacked
|
-
|
|
0.8
|
|
-
|
|
|
|
|
|
|
|
New generation MPSVs -
Total
|
8.0
|
|
8.0
|
|
8.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
70.0
|
|
70.0
|
|
70.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q 2017E
Range
|
|
Full-Year
2017E Range
|
|
|
|
|
|
Cost
Data:
|
Low14
|
|
High
14
|
|
Low14
|
|
High
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$
30.0
|
|
$
35.0
|
|
$
119.4
|
|
$
124.4
|
|
|
|
|
|
General and administrative
expenses
|
$
11.0
|
|
$
13.0
|
|
$
47.6
|
|
$
49.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q
2017A
|
|
2Q
2017A
|
|
3Q
2017A
|
|
4Q
2017E
|
|
2017E
|
|
2018E
|
|
Other Financial
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
$
24.7
|
|
$
24.7
|
|
$
24.7
|
|
$
24.7
|
|
$
98.8
|
|
$
99.1
|
|
Amortization
|
3.7
|
|
3.3
|
|
2.5
|
|
2.2
|
|
11.7
|
|
8.8
|
|
Interest
expense, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense 15
|
$
13.5
|
|
$
13.6
|
|
$
14.6
|
|
$
14.6
|
|
$
56.3
|
|
$
64.3
|
|
Incremental
non-cash OID interest expense 16
|
2.7
|
|
2.5
|
|
0.9
|
|
0.9
|
|
7.0
|
|
4.0
|
|
Amortization
of deferred gain 17
|
-
|
|
(0.2)
|
|
(0.9)
|
|
(0.8)
|
|
(1.9)
|
|
(3.2)
|
|
Capitalized
interest
|
(2.4)
|
|
(2.5)
|
|
(2.7)
|
|
(2.4)
|
|
(10.0)
|
|
(10.1)
|
|
Interest
income
|
(0.4)
|
|
(0.5)
|
|
(0.4)
|
|
(0.3)
|
|
(1.6)
|
|
(1.0)
|
|
Total interest
expense, net
|
$
13.4
|
|
$
12.9
|
|
$
11.5
|
|
$
12.0
|
|
$
49.8
|
|
$
54.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
rate
|
30.6%
|
|
32.2%
|
|
32.5%
|
|
35.0%
|
|
32.5%
|
|
34.0%
|
|
Cash paid for
(refunds of) income taxes
|
$
0.3
|
|
$
0.4
|
|
$
0.3
|
|
$
(10.1)
|
|
$
(9.1)
|
|
$
1.4
|
|
Cash paid for
interest 15
|
13.8
|
|
12.4
|
|
13.8
|
|
12.6
|
|
52.6
|
|
58.8
|
|
Weighted
average basic shares outstanding
|
36.6
|
|
36.8
|
|
37.0
|
|
37.0
|
|
36.9
|
|
37.5
|
|
Weighted
average diluted shares outstanding 18
|
37.4
|
|
37.6
|
|
37.8
|
|
37.9
|
|
37.7
|
|
38.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 and nine months ended September 30, 2017, the three and
nine months ended September 30, 2016 and the three months ended
June 30, 2017, the Company excluded the dilutive effect of equity
awards representing the rights to acquire 990, 988, 988, 974 and
992 shares of common stock, respectively, because the effect was
anti-dilutive. As of September 30, 2017, June 30, 2017, and
September 30, 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 September 30, 2017. Excluded from
this data are eight MPSVs owned by the Company and four non-owned
vessels operated by the Company for the U.S. Navy.
|
|
|
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 related to
non-owned vessels, 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
EBITDA 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 has also historically made certain adjustments, as
applicable, to EBITDA for losses (gains) 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 such ratios can, at times, 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 November 1,
2017, the Company's inactive fleet of 43 new generation OSVs that
were "stacked" was comprised of the following: twelve 200 class
OSVs, twenty-four 240 class OSVs, three 265 class OSVs and four 300
class OSVs. In addition, the Company plans to stack two 240
class OSVs during the fourth quarter of 2017.
|
|
|
14
|
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.
|
|
|
15
|
Interest on the
Company's First-Lien Credit Facility is variable based on changes
in LIBOR, or the London Interbank Offered Rate. The guidance
included in this press release is based on industry estimates of
LIBOR in future periods as of November 1, 2017. Actual
results may differ from this estimate.
|
|
|
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
|
Represents the
non-cash recognition of the $20.7 million gain on the debt-for-debt
exchange associated with the Company's First-Lien Credit Facility,
which is being deferred and amortized prospectively as a yield
adjustment to interest expense as required by GAAP under debt
modification accounting.
|
|
|
18
|
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.
|
View original
content:http://www.prnewswire.com/news-releases/hornbeck-offshore-announces-third-quarter-2017-results-300547873.html
SOURCE Hornbeck Offshore Services, Inc.