Teekay Corporation (Teekay or the Company) (NYSE:TK) today reported
results for the fourth quarter and year ended December 31, 2020.
These results include the Company’s two publicly-listed
consolidated subsidiaries, Teekay LNG Partners L.P. (Teekay LNG)
(NYSE:TGP) and Teekay Tankers Ltd. (Teekay Tankers) (NYSE:TNK)
(collectively, the Daughter Entities), and all remaining
subsidiaries and equity-accounted investments. Teekay, together
with its subsidiaries other than the Daughter Entities, is referred
to in this release as Teekay Parent. Please refer to the fourth
quarter and annual 2020 earnings releases of Teekay LNG and Teekay
Tankers, which are available on Teekay's website at www.teekay.com,
for additional information on their respective results.
Financial Summary
|
|
Three Months Ended |
Year Ended |
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
(in thousands of U.S. dollars, except per share
amounts) |
2020 |
2020 |
2019 (2) |
2020 |
2019 (2) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
TEEKAY CORPORATION CONSOLIDATED |
|
|
|
|
GAAP FINANCIAL COMPARISON |
|
|
|
|
|
Revenues |
362,296 |
|
396,517 |
|
570,285 |
1,815,672 |
|
1,945,391 |
|
Income from vessel operations |
25,795 |
|
11,384 |
|
178,736 |
314,579 |
|
204,042 |
|
Equity income (loss) |
15,285 |
|
24,392 |
|
31,900 |
77,333 |
|
(14,523 |
) |
Net (loss) income attributable to |
|
|
|
|
|
|
shareholders of Teekay |
(19,444 |
) |
(35,407 |
) |
11,343 |
(82,933 |
) |
(310,577 |
) |
(Loss) earnings per share attributable to |
|
|
|
|
|
|
shareholders of Teekay |
(0.19 |
) |
(0.35 |
) |
0.11 |
(0.82 |
) |
(3.08 |
) |
NON-GAAP FINANCIAL COMPARISON |
|
|
|
|
|
Total adjusted EBITDA (1) |
201,061 |
|
226,998 |
|
325,465 |
1,086,126 |
|
951,913 |
|
Adjusted net income (loss) attributable |
|
|
|
|
|
|
to shareholders of Teekay (1) |
2,849 |
|
15,229 |
|
31,282 |
83,050 |
|
(19,111 |
) |
Adjusted net income (loss) per share |
|
|
|
|
|
|
attributable to shareholders of Teekay (1) |
0.03 |
|
0.15 |
|
0.31 |
0.82 |
|
(0.19 |
) |
TEEKAY PARENT |
|
|
|
|
|
NON-GAAP FINANCIAL COMPARISON |
|
|
|
|
|
Teekay Parent adjusted EBITDA (1) |
10,553 |
|
3,271 |
|
13,822 |
28,657 |
|
5,379 |
|
Total Teekay Parent free cash flow (1) |
353 |
|
(17,135 |
) |
4,943 |
33,999 |
|
(34,029 |
) |
(1) |
These are non-GAAP financial measures. Please refer to “Definitions
and Non-GAAP Financial Measures” and the Appendices to this release
for definitions of these terms and reconciliations of these
non-GAAP financial measures as used in this release to the most
directly comparable financial measures under United States
generally accepted accounting principles (GAAP). |
(2) |
Comparative balances relating to
the three months and year ended December 31, 2019 have been updated
to reflect results consistent with the presentation in the
Company’s 2019 Annual Report on Form 20-F and this report for the
three months and year ended December 31, 2020. |
(3) |
Including net proceeds from asset
sales and the upfront amount received in April 2020 in relation to
the new Foinaven FPSO charter contract. |
|
|
CEO Commentary
“In the fourth quarter of 2020, we recorded another
consolidated adjusted profit with Teekay Parent and Teekay LNG
reporting stronger adjusted results, while Teekay Tankers' results
reflected the recent weakness in the tanker market,” commented
Kenneth Hvid, Teekay’s President and CEO. “Despite an unprecedented
year marked by continuous volatility across energy markets, our gas
business reported its highest ever adjusted net income in 2020,
supported by the stable cash flows from its diversified portfolio
of long-term contracts, and our tanker business reported its best
year ever from a free cash flow perspective, as its spot exposure
enabled it to benefit from an extraordinary surge of demand for
tankers in the first half of 2020. In 2020, we reported
consolidated adjusted net income of $83 million, or $0.82 per
share, compared to the prior year's adjusted net loss of $19
million, or $0.19 per share, and we increased our total adjusted
EBITDA to $1.1 billion, up nearly 15 percent over the prior
year.”
“We also continued to prioritize balance sheet
strength and made significant progress in that effort,” continued
Mr. Hvid. “In 2020, we reduced our consolidated net debt by
approximately $890 million(1), or over 20 percent, and increased
our consolidated total liquidity position to $1.0 billion as of
year end.”
Mr. Hvid added, “Teekay LNG announced today that
it plans to increase its common unit distributions by 15 percent,
to $1.15 per common unit per annum, commencing with the first
quarter’s distribution to be paid in May 2021. This increase will
add to Teekay Parent's free cash flows and represents the third
consecutive year of double-digit increases in Teekay LNG's
distribution to common unitholders. Importantly, given Teekay LNG's
strong earnings and industry-leading backlog of long-term
contracts, we believe the increased distribution is well-covered,
which allows Teekay LNG to provide an attractive distribution to
investors while continuing to delever its balance sheet.”
Mr. Hvid concluded, “All of the accomplishments
during the past year would not have been possible without the
dedication and perseverance of all our seafarers and onshore
colleagues as we have so far successfully navigated through the
unique challenges of the COVID-19 pandemic.”
(1) |
Including the proceeds from asset sales and the upfront amount
received in April 2020 in relation to the new Foinaven FPSO charter
contract. |
Summary of Results
Teekay Corporation
Consolidated
The Company's consolidated results during the
fourth quarter of 2020 decreased compared to the same period of the
prior year, primarily due to lower earnings from Teekay Tankers as
a result of lower average spot tanker rates and a higher number of
scheduled drydockings during the fourth quarter of 2020, as well as
the cessation of production of the Petrojarl Banff (Banff) FPSO
unit in June 2020 due to the decommissioning of the Banff oil
field. These decreases were partially offset by higher earnings
from Teekay LNG due to the delivery of newbuildings and lower
interest expense across Teekay due to both debt reduction over the
past year and lower interest rates.
In addition, consolidated GAAP net loss during
the fourth quarter of 2020, compared to the same period of the
prior year, was impacted by an increase in asset write-downs and an
increase in freight tax accruals, including adjustments relating to
prior periods (as discussed in the Summary Results for Daughter
Entities section).
Teekay Parent
Total Teekay Parent Free Cash Flow(1) was $0.4
million during the fourth quarter of 2020, compared to $4.9 million
for the same period of the prior year, primarily due to the
decommissioning of the Banff oil field beginning in June 2020 and
the associated decommissioning costs incurred during the fourth
quarter of 2020, as well as lower cash flows from third-party
management services. These items were partially offset by higher
distributions received from Teekay LNG as a result of Teekay LNG's
32 percent increase in its quarterly cash distributions commencing
in May 2020 and the newly-issued Teekay LNG common units Teekay
Parent received as consideration for the Teekay LNG incentive
distribution rights (IDR) transaction completed in May 2020, the
elimination of the operating losses on the Foinaven FPSO unit as a
result of the commencement of the new bareboat contract in the
first quarter of 2020, and lower interest and corporate general and
administrative expenses in the fourth quarter of 2020.
Please refer to Appendix D of this release for
additional information about Teekay Parent's Free Cash Flow(1).
(1) |
This is a non-GAAP financial measure. Please refer to “Definitions
and Non-GAAP Financial Measures” and the Appendices to this release
for a definition of this term and a reconciliation of this non-GAAP
financial measure as used in this release to the most directly
comparable financial measures under GAAP. |
Summary Results of Daughter
Entities
Teekay LNG
Teekay LNG’s GAAP net income, adjusted net
income(1) and total adjusted EBITDA(1) for the fourth quarter of
2020, compared to the same quarter of the prior year, were
positively impacted by the delivery of LNG carrier newbuildings,
the commencement of terminal use payments for the 30 percent-owned
Bahrain LNG Terminal in one of Teekay LNG's joint ventures and
higher liquefied petroleum gas (LPG) rates. These increases were
partially offset by more scheduled drydockings during the fourth
quarter of 2020, lower charter rates earned by certain LNG carriers
and, in addition, the increases in Teekay LNG's non-GAAP adjusted
net income(1) were partially offset by the sales of two LNG
carriers in January 2020. Teekay LNG's GAAP net income and adjusted
net income(1) were further positively impacted by lower net
interest expense in the fourth quarter of 2020 primarily as a
result of debt repayments over the past year.
In addition, compared to the same period of the
prior year, Teekay LNG's GAAP net income in the fourth quarter of
2020 was negatively impacted by asset write-downs relating to four
wholly-owned multi-gas carriers for $6 million and four 50
percent-owned LPG carriers for $17 million in the fourth quarter of
2020, a $14.3 million gain recognized in the fourth quarter of 2019
upon the derecognition of two LNG carriers as they were
reclassified as sales-type leases, and lower unrealized gains on
non-designated derivative instruments in the fourth quarter of 2020
compared to the fourth quarter of 2019.
Please refer to Teekay LNG's fourth quarter 2020
earnings release for additional information on the financial
results for this entity.
Teekay Tankers
Teekay Tankers' GAAP net loss, adjusted net
loss(1) and total adjusted EBITDA(1) for the fourth quarter of
2020, compared to the fourth quarter of 2019, were negatively
impacted primarily by lower average spot tanker rates and a higher
number of scheduled drydockings during the fourth quarter of 2020,
as well as the sale of four Suezmax tankers during December 2019
and the first quarter of 2020 and the sale of the non-US portion of
the ship-to-ship support services and LNG terminal management
business in the second quarter of 2020. These decreases were
partially offset by lower vessel operating expenses and interest
expense in the fourth quarter of 2020, compared to the same period
of the prior year. GAAP net loss for the fourth quarter of 2020 was
also negatively impacted by an $18.1 million freight tax accrual
adjustment, of which $10.5 million relates to 2020 and is included
in non-GAAP adjusted net loss. In addition, Teekay Tankers' GAAP
net loss in the fourth quarter of 2020 reflects an $18.7 million
increase in write-down of assets compared to the fourth quarter of
2019.
Crude spot tanker rate weakness persisted into
the fourth quarter of 2020 as a result of OPEC+ production cuts
related to reduced oil demand during the COVID-19 pandemic, as well
as the return of ships to the global spot trading fleet from the
unwinding of floating storage. Teekay Tankers was able to partially
mitigate the impact of these weaker spot rates by employing 20
percent of its fleet on fixed-rate charters during the fourth
quarter of 2020 at an average rate of $35,700 per day. The weakness
in spot tanker rates has continued into the first quarter of 2021,
with rates for Suezmax tankers and Aframax / LR2 tankers so far
averaging slightly above levels reported in the fourth quarter of
2020. Tanker demand is expected to improve later in
2021 as vaccination programs are implemented worldwide, at which
time the OPEC+ group is expected to return oil supply to the
market. Low tanker fleet growth should further help facilitate an
improvement in the tanker market, particularly if tanker scrapping
increases over the coming months.
Please refer to Teekay Tankers' fourth quarter
2020 earnings release for additional information on the financial
results for this entity.
(1) |
This is a non GAAP financial measure. Please refer to "Definitions
and Non-GAAP Financial Measures" and the Appendices to this release
for a definition of this term and a reconciliation of this non-GAAP
financial measure as used in this release to the most directly
comparable financial measures under GAAP. |
Summary of Recent Events
Teekay Parent
Since reporting earnings in mid-November 2020,
Teekay Parent has repurchased $5.0 million in principal amount of
its existing 9.25 percent Secured Senior Notes for total
consideration of $4.8 million at an average all-in price of 95.00.
To-date, Teekay Parent has repurchased $12.8 million in principal
amount of its existing 5 percent Convertible Senior Notes for total
consideration of $10.5 million at an average all-in price of 81.55,
and $6.6 million in principal amount of its existing 9.25 percent
Secured Senior Notes for total consideration of $6.2 million at an
average all-in price of 94.33.
Teekay LNG
In October 2020, the charterer of the 52
percent-owned LNG carrier, Marib Spirit, exercised its options to
extend the current charter by 14 months at a higher charter rate,
extending the vessel's charter coverage to early-2022.
In December 2020, Teekay LNG's 52 percent-owned
joint venture with Marubeni Corporation (the MALT Joint Venture)
secured a two-year, fixed-rate charter contract, with a one-year
option, for the Methane Spirit, which is expected to commence after
its current charter contract ends in March 2021.
In December 2020, Teekay LNG's 50 percent-owned
joint venture with Exmar NV (the Exmar LPG Joint Venture)
successfully refinanced its $254 million revolving credit facility
and term loan by entering into a new revolving credit facility in
the amount of $310 million maturing in December 2023.
On February 8, 2021, Teekay LNG's 70
percent-owned joint venture with PT Berlian Laju Tanker (the
Tangguh Joint Venture), refinanced its $191.5 million term loan
which was scheduled to mature in 2021, by entering into a new
$191.5 million term loan maturing in February 2026.
Teekay Tankers
In November 2020, Teekay Tankers declared
options to purchase two of its Suezmax vessels that are currently
on long-term sale-leaseback financings for approximately $57
million, with expected delivery to Teekay Tankers in May 2021.
Teekay Tankers intends to fund the purchase price with existing
liquidity and potentially a new long-term debt facility.
In December 2020, Teekay Tankers entered into a
seven-year in-charter agreement (plus extension and purchase
options) for one eco-Aframax newbuilding vessel at an attractive
rate of $18,700 per day, with expected delivery in late-2022.
In February 2021, Teekay Tankers entered into an
agreement to sell two unencumbered 2008-built Aframax tankers for
total gross proceeds of $32 million, with expected delivery to the
buyer in March 2021.
Liquidity
As at December 31, 2020, Teekay Parent had
total liquidity of approximately $173.4 million (consisting of
$44.8 million of cash and cash equivalents, and $128.6 million of
undrawn capacity from a revolving credit facility). On a
consolidated basis, as at December 31 2020, Teekay had consolidated
total liquidity of approximately $1.0 billion (consisting of $348.8
million of cash and cash equivalents and $658.8 million of undrawn
capacity from its credit facilities).
Conference Call
The Company plans to host a conference call on
Thursday, February 25, 2021 at 11:00 a.m. (ET) to discuss its
results for the fourth quarter and year ended December 31, 2020.
All shareholders and interested parties are invited to listen to
the live conference call by choosing from the following
options:
- By dialing (866) 248-8441 or (647) 792-1240, if outside North
America, and quoting conference ID code 9287182.
- By accessing the webcast, which will be available on Teekay’s
website at www.teekay.com (the archive will remain on the website
for a period of one year).
An accompanying Fourth Quarter and Annual 2020
Earnings Presentation will also be available at www.teekay.com in
advance of the conference call start time.
About Teekay
Teekay is a leading provider of international
crude oil and gas marine transportation services. Teekay provides
these services primarily through its directly-owned fleet and its
controlling ownership interests in Teekay LNG Partners L.P.
(NYSE:TGP), one of the world’s largest independent owners and
operators of LNG carriers, and Teekay Tankers Ltd. (NYSE:TNK), one
of the world’s largest owners and operators of mid-sized crude
tankers. The consolidated Teekay entities manage and operate total
assets under management of approximately $9 billion, comprised of
approximately 135 liquefied gas, offshore, and conventional tanker
assets. With offices in 10 countries and approximately 5,350
seagoing and shore-based employees, Teekay provides a comprehensive
set of marine services to the world’s leading oil and gas
companies.
Teekay’s common stock is listed on the New York
Stock Exchange where it trades under the symbol “TK”.
For Investor Relations enquiries
contact:Ryan HamiltonTel: +1 (604)
609-2963Website: www.teekay.com
Definitions and Non-GAAP Financial
Measures
This release includes various financial measures
that are non-GAAP financial measures as defined under the rules of
the Securities and Exchange Commission (SEC). These non-GAAP
financial measures, which include Adjusted Net Income (Loss)
Attributable to Shareholders of Teekay, Teekay Parent Free Cash
Flow, Net Interest Expense, Adjusted Equity Income and Adjusted
EBITDA, are intended to provide additional information and should
not be considered substitutes for measures of performance prepared
in accordance with GAAP. In addition, these measures do not have
standardized meanings across companies, and therefore may not be
comparable to similar measures presented by other companies. The
Company believes that certain investors use this information to
evaluate the Company’s financial performance, as does
management.
Non-GAAP Financial Measures
Total Adjusted EBITDA represents net (loss)
income before interest, taxes, depreciation and amortization, and
is adjusted to exclude certain items whose timing or amount cannot
be reasonably estimated in advance or that are not considered
representative of core operating performance. Such adjustments
include foreign currency exchange gains and losses, any write-downs
and/or gains and losses on sale of operating assets, adjustments
for direct financing and sales-type leases to a cash basis,
amortization of in-process revenue contracts, unrealized gains and
losses on derivative instruments, credit loss provision
adjustments, write-downs related to equity-accounted investments,
our share of the above items in non-consolidated joint ventures
which are accounted for using the equity method of accounting, and
other income or loss. Total Adjusted EBITDA also excludes realized
gains or losses on interest rate swaps as management, in assessing
the Company's performance, views these gains or losses as an
element of interest expense and realized gains or losses on
interest rate swaps resulting from amendments or terminations of
the underlying instruments.
Consolidated Adjusted EBITDA represents Adjusted
EBITDA from vessels that are consolidated on the Company's
financial statements. Adjusted EBITDA from Equity-Accounted Vessels
represents the Company's proportionate share of Adjusted EBITDA
from its equity-accounted vessels. The Company does not have the
unilateral ability to determine whether the cash generated by its
equity-accounted vessels is retained within the entity in which the
Company holds the equity-accounted investments or distributed to
the Company and other owners. In addition, the Company does not
control the timing of any such distributions to the Company and
other owners. Total Adjusted EBITDA represents Consolidated
Adjusted EBITDA plus Adjusted EBITDA from Equity-Accounted Joint
Ventures. Adjusted EBITDA is a non-GAAP financial measure used by
certain investors and management to measure the operational
performance of companies. Please refer to Appendices C and E of
this release for reconciliations of Adjusted EBITDA to net (loss)
income and equity income (loss), respectively, which are the most
directly comparable GAAP measures reflected in the Company’s
consolidated financial statements.
Adjusted Net Income (Loss) Attributable to
Shareholders of Teekay excludes items of income or loss from GAAP
net (loss) income that are typically excluded by securities
analysts in their published estimates of the Company’s financial
results. The Company believes that certain investors use this
information to evaluate the Company’s financial performance, as
does management. Please refer to Appendix A of this release for a
reconciliation of this non-GAAP financial measure to net (loss)
income, and refer to footnote (6) of the statements of (loss)
income for a reconciliation of adjusted equity income to equity
income (loss), the most directly comparable GAAP measure reflected
in the Company’s consolidated financial statements.
Teekay Parent Financial
Measures
Teekay Parent Adjusted EBITDA represents the sum
of distributions or dividends (including payments-in-kind) relating
to a given quarter (but received by Teekay Parent in the following
quarter) as a result of ownership interests in its consolidated
publicly-traded subsidiaries (Teekay LNG and Teekay Tankers),
Adjusted EBITDA attributed to Teekay Parent’s directly-owned and
chartered-in assets, and Teekay Parent’s corporate general and
administrative expenditures for the given quarter.
Teekay Parent Free Cash Flow represents Teekay
Parent Adjusted EBITDA, plus upfront cash receivable in respect of
a sales-type lease, less Teekay Parent’s net interest expense and,
commencing in the second quarter of 2020, asset retirement costs
incurred for the given quarter. Net Interest Expense includes
interest expense (excluding non-cash accretion and the amortization
of prepaid loan costs), interest income and realized losses on
interest rate swaps. Please refer to Appendices B, C, D and E of
this release for further details and reconciliations of these
non-GAAP financial measures to the most directly comparable GAAP
measures reflected in the Company’s consolidated financial
statements.
Teekay Corporation Summary
Consolidated Statements of (Loss) Income (in thousands of
U.S. dollars, except share and per share data)
|
Three Months Ended |
Year Ended |
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|
2020 |
2020 |
2019 (1) |
2020 |
2019 (1) |
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|
|
|
|
|
|
Revenues |
362,296 |
|
396,517 |
|
570,285 |
|
1,815,672 |
|
1,945,391 |
|
|
|
|
|
|
|
Voyage expenses |
(64,437 |
) |
(61,736 |
) |
(113,655 |
) |
(314,633 |
) |
(423,677 |
) |
Vessel operating expenses |
(144,951 |
) |
(153,764 |
) |
(165,216 |
) |
(599,804 |
) |
(644,445 |
) |
Time-charter hire expense |
(16,717 |
) |
(18,796 |
) |
(31,174 |
) |
(80,283 |
) |
(118,761 |
) |
Depreciation and amortization |
(60,926 |
) |
(64,352 |
) |
(71,083 |
) |
(261,131 |
) |
(290,672 |
) |
General and administrative expenses |
(19,210 |
) |
(18,073 |
) |
(17,588 |
) |
(79,228 |
) |
(81,444 |
) |
Write-down and (loss) gain on sale of assets (2) |
(28,690 |
) |
(66,273 |
) |
8,803 |
|
(200,238 |
) |
(170,310 |
) |
Gain on commencement of sales-type lease (3) |
— |
|
— |
|
— |
|
44,943 |
|
— |
|
Restructuring charges (4) |
(1,570 |
) |
(2,139 |
) |
(1,636 |
) |
(10,719 |
) |
(12,040 |
) |
Income from vessel operations |
25,795 |
|
11,384 |
|
178,736 |
|
314,579 |
|
204,042 |
|
|
|
|
|
|
|
Interest expense |
(50,707 |
) |
(53,175 |
) |
(67,476 |
) |
(225,647 |
) |
(279,059 |
) |
Interest income |
1,471 |
|
1,754 |
|
1,397 |
|
8,342 |
|
7,804 |
|
Realized and unrealized (losses) gains on |
|
|
|
|
|
non-designated derivative instruments (5) |
(3,453 |
) |
(1,471 |
) |
4,592 |
|
(35,857 |
) |
(13,719 |
) |
Equity income (loss) (6) |
15,285 |
|
24,392 |
|
31,900 |
|
77,333 |
|
(14,523 |
) |
Income tax expense (7) |
(18,669 |
) |
(3,702 |
) |
(13,951 |
) |
(8,988 |
) |
(25,482 |
) |
Foreign exchange loss |
(12,499 |
) |
(5,943 |
) |
(10,721 |
) |
(20,718 |
) |
(13,574 |
) |
Other loss – net (8) |
(2,355 |
) |
(14,627 |
) |
(1,980 |
) |
(18,062 |
) |
(14,475 |
) |
Net (loss) income |
(45,132 |
) |
(41,388 |
) |
122,497 |
|
90,982 |
|
(148,986 |
) |
Net loss (income) attributable to |
|
|
|
|
|
non-controlling interests |
25,688 |
|
5,981 |
|
(111,154 |
) |
(173,915 |
) |
(161,591 |
) |
Net (loss) income attributable to the
shareholders |
|
|
|
|
|
of Teekay Corporation |
(19,444 |
) |
(35,407 |
) |
11,343 |
|
(82,933 |
) |
(310,577 |
) |
(Loss) earnings per common share of Teekay Corporation |
|
|
|
|
|
- Basic |
$ |
(0.19 |
) |
$ |
(0.35 |
) |
$ |
0.11 |
|
$ |
(0.82 |
) |
$ |
(3.08 |
) |
- Diluted |
$ |
(0.19 |
) |
$ |
(0.35 |
) |
$ |
0.11 |
|
$ |
(0.82 |
) |
$ |
(3.08 |
) |
Weighted-average number of common shares outstanding |
|
|
|
|
|
- Basic |
101,108,886 |
|
101,107,371 |
|
100,784,425 |
|
101,053,095 |
|
100,719,224 |
|
- Diluted |
101,108,886 |
|
101,107,371 |
|
100,425,574 |
|
101,053,095 |
|
100,719,224 |
|
(1) |
Comparative balances relating to the three months and year ended
December 31, 2019 have been updated to reflect results consistent
with the presentation in the Company’s 2019 Annual Report on Form
20-F and this report for the three months and year ended December
31, 2020. |
(2) |
Write-down and (loss) gain on
sale of assets for the three months ended December 31, 2020
includes write-downs of $28.7 million relating to six Aframax
tankers (two of which were classified as held for sale as at
December 31, 2020), four multi-gas carriers and two in-charter
right-of-use (ROU) assets. Write-down and (loss) gain on sale of
assets for the three months ended September 30, 2020 includes
write-downs of $66.3 million relating to five Aframax tankers, the
Sevan Hummingbird (Hummingbird) FPSO unit, and the Suksan
Salamander FSO unit, an operating lease ROU asset. Write-down and
(loss) gain on sale of assets for the year ended December 31, 2020
also includes write-downs of six multi-gas carriers totaling $45.0
million, other write-downs of two FPSO units totaling $46.5
million, and a $13.6 million provision relating to an adjustment in
the Banff FPSO unit's estimated asset retirement obligation and the
write-down of the unit's remaining residual value. |
(3) |
Gain on commencement of
sales-type lease of $44.9 million for the year ended December 31,
2020 relates to the commencement of the sales-type lease for the
Foinaven FPSO unit as a result of a new bareboat charter
agreement. |
(4) |
Restructuring charges for the
year ended December 31, 2020 includes redundancy accruals arising
from the cessation of production of the Banff FPSO unit in June
2020, the restructuring of the Company's tanker operations, and the
reorganization and realignment of resources of the Company's shared
services functions, of which a portion of the costs were recovered
from the customer, Altera Infrastructure LP (Altera). Restructuring
charges for the year ended December 31, 2020 also includes
severance costs resulting from the termination of the contract for
an FSO unit based in Australia, of which a portion of the costs
will be recovered from the customer. Recoverable severance costs
totaling $5.1 million are presented in revenues for the year ended
December 31, 2020. |
(5) |
Realized and unrealized (losses)
gains related to derivative instruments that are not designated in
qualifying hedging relationships for accounting purposes are
included as a separate line item in the consolidated statements of
(loss) income. The realized (losses) gains relate to the amounts
the Company actually paid to settle such derivative instruments and
the unrealized gains (losses) relate to the change in fair value of
such derivative instruments, as detailed in the table below: |
|
|
Three Months Ended |
Year Ended |
|
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|
|
2020 |
2020 |
2019 |
2020 |
2019 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
Realized (losses) gains relating to |
|
|
|
|
|
|
Interest rate swap agreements |
(5,578 |
) |
(5,349 |
) |
(2,576 |
) |
(17,483 |
) |
(8,296 |
) |
|
Stock purchase warrants (i) |
— |
|
— |
|
— |
|
— |
|
(25,559 |
) |
|
Foreign currency forward contracts |
— |
|
379 |
|
(147 |
) |
138 |
|
(147 |
) |
|
Forward freight agreements |
(809 |
) |
(183 |
) |
1,097 |
|
(1,242 |
) |
1,490 |
|
|
|
(6,387 |
) |
(5,153 |
) |
(1,626 |
) |
(18,587 |
) |
(32,512 |
) |
Unrealized gains (losses) relating to |
|
|
|
|
|
|
Interest rate swap agreements |
2,549 |
|
3,956 |
|
6,961 |
|
(17,558 |
) |
(7,878 |
) |
|
Foreign currency forward contracts |
— |
|
(53 |
) |
336 |
|
202 |
|
(200 |
) |
|
Stock purchase warrants (i) |
— |
|
— |
|
— |
|
— |
|
26,900 |
|
|
Forward freight agreements |
385 |
|
(221 |
) |
(1,079 |
) |
86 |
|
(29 |
) |
|
|
2,934 |
|
3,682 |
|
6,218 |
|
(17,270 |
) |
18,793 |
|
Total realized and unrealized (losses) gains on derivative
instruments |
(3,453 |
) |
(1,471 |
) |
4,592 |
|
(35,857 |
) |
(13,719 |
) |
(i) |
Stock purchase warrants for the year ended December 31, 2019
relates to the sale of the Company's remaining interest in Altera
in May 2019. Also refer to footnote (6)(i) below. |
(6) |
The Company’s proportionate share of items within equity income
(loss) as identified in Appendix A of this release is detailed in
the table below. By excluding these items from equity income (loss)
as reflected in the consolidated statements of (loss) income, the
Company believes the resulting adjusted equity income is a
normalized amount that can be used to evaluate the financial
performance of the Company’s equity-accounted investments. Adjusted
equity income is a non-GAAP financial measure. |
|
|
Three Months Ended |
Year Ended |
|
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|
|
2020 |
2020 |
2019 |
2020 |
2019 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
Equity income (loss) |
15,285 |
|
24,392 |
|
31,900 |
|
77,333 |
(14,523 |
) |
Proportionate share of unrealized (gains) |
|
|
|
|
|
|
losses on derivative instruments |
(4,214 |
) |
(2,680 |
) |
(6,271 |
) |
19,116 |
12,867 |
|
Loss on sale of investment in Altera (i) |
— |
|
— |
|
— |
|
— |
72,753 |
|
Other (ii) |
19,320 |
|
8,266 |
|
1,436 |
|
35,966 |
2,309 |
|
Equity income adjusted for items in Appendix A |
30,391 |
|
29,978 |
|
27,065 |
|
132,415 |
73,406 |
|
(i) |
During the year ended December 30, 2019, the Company recognized a
write-down of $64.9 million on its equity-accounted investment in
Altera, and a loss of $7.9 million on sale of its investment in
Altera to affiliates of Brookfield Business Partners L.P., which
occurred in May 2019. Also refer to footnote (5)(i) above in
respect of gains and losses on stock purchase warrants. |
(ii) |
Other for the three months and
year ended December 31, 2020 includes the proportionate share of
write-down of vessels in Teekay LNG's equity-accounted investees.
Other for the three months and year ended December 31, 2020 and
three months ended September 30, 2020 also includes unrealized
credit loss provision adjustments to the Company's financial
instruments as a result of the adoption in 2020 of ASU 2016-13,
Financial Instruments - Credit Losses: Measurement of Credit Losses
on Financial Instruments (ASU 2016-13). |
(7) |
During the three months ended December 31, 2020, the Company
obtained further advice regarding the freight taxes in a certain
jurisdiction due to the uncertainty surrounding recent tax changes.
Based on this new information and other considerations, the Company
increased its provision during the three months ended December 31,
2020 for uncertain tax liabilities by $20.8 million, of which $11.5
million relates to 2020 voyages, and $2.1 million of that balance
relates to the fourth quarter of 2020. |
(8) |
Other loss - net for the three
months and year ended December 31, 2020, and three months ended
September 30, 2020 includes unrealized credit loss provision
adjustments of $1.8 million, $17.0 million and $15.0 million,
respectively, as a result of the adoption of ASU 2016-13 effective
January 1, 2020. Other loss – net for the year ended December 31,
2019 includes a $10.6 million loss relating to the repurchase of
the Company's 2020 Unsecured Senior Notes, which matured in January
2020. |
Teekay Corporation Summary
Consolidated Balance Sheets(in thousands of U.S.
dollars)
|
As at December 31, |
As at September 30, |
As at December 31, |
|
2020 |
2020 |
2019 (2) |
|
(unaudited) |
(unaudited) |
(unaudited) |
ASSETS |
|
|
Cash and cash equivalents - Teekay Parent |
44,791 |
54,655 |
104,196 |
Cash and cash equivalents - Teekay LNG |
206,762 |
201,036 |
160,221 |
Cash and cash equivalents - Teekay Tankers |
97,232 |
120,872 |
88,824 |
Assets held for sale |
32,974 |
— |
65,458 |
Accounts receivable and other current assets |
282,242 |
274,408 |
393,406 |
Restricted cash - Teekay Parent |
10 |
4,060 |
2,048 |
Restricted cash - Teekay LNG |
51,181 |
53,801 |
93,070 |
Restricted cash - Teekay Tankers |
5,914 |
8,123 |
6,508 |
Vessels and equipment - Teekay Parent |
— |
— |
95,984 |
Vessels and equipment - Teekay LNG |
2,875,169 |
2,908,182 |
3,027,342 |
Vessels and equipment - Teekay Tankers |
1,555,300 |
1,616,518 |
1,750,166 |
Operating lease right-of-use assets |
52,961 |
61,796 |
159,638 |
Net investment in direct financing and sales-type leases |
528,641 |
537,142 |
818,809 |
Investments in and loans to equity-accounted investments |
1,075,653 |
1,111,660 |
1,173,728 |
Other non-current assets |
137,082 |
128,867 |
133,466 |
Total Assets |
6,945,912 |
7,081,120 |
8,072,864 |
LIABILITIES AND EQUITY |
|
|
Accounts payable and other current liabilities |
456,152 |
461,664 |
430,497 |
Liabilities related to assets held for sale |
— |
— |
2,980 |
Short-term debt - Teekay Tankers |
10,000 |
20,000 |
50,000 |
Current portion of long-term debt - Teekay Parent |
— |
— |
86,674 |
Current portion of long-term debt - Teekay LNG |
322,440 |
363,161 |
463,047 |
Current portion of long-term debt - Teekay Tankers |
89,334 |
37,756 |
68,930 |
Long-term debt - Teekay Parent |
339,933 |
346,178 |
349,403 |
Long-term debt - Teekay LNG |
2,490,695 |
2,488,953 |
2,779,253 |
Long-term debt - Teekay Tankers |
513,670 |
573,381 |
905,537 |
Operating lease liabilities |
54,290 |
63,529 |
148,602 |
Other long-term liabilities |
198,107 |
196,568 |
216,348 |
Equity: |
|
|
|
Non-controlling interests |
1,989,883 |
2,033,112 |
2,089,730 |
Shareholders of Teekay |
481,408 |
496,818 |
481,863 |
Total Liabilities and Equity |
6,945,912 |
7,081,120 |
8,072,864 |
Net debt - Teekay Parent (2) |
295,132 |
287,463 |
329,833 |
Net debt - Teekay LNG (2) |
2,555,192 |
2,597,277 |
2,989,009 |
Net debt - Teekay Tankers (2) |
509,858 |
502,142 |
929,135 |
(1) |
Comparative balances relating to the year ended December 31, 2019
have been updated to reflect results consistent with the
presentation in the Company’s 2019 Annual Report on Form 20-F and
this report for the three months and year ended December 31,
2020. |
(2) |
Net debt is a non-GAAP financial
measure and represents short-term debt, current portion of
long-term debt and long-term debt, less cash and cash equivalents,
and, if applicable, restricted cash. |
Teekay Corporation
Summary Consolidated Statements of Cash Flows(in
thousands of U.S. dollars)
|
Year Ended |
|
December 31, |
|
2020 |
2019 |
|
(unaudited) |
(unaudited) |
Cash, cash equivalents and restricted cash provided by (used
for) |
|
|
OPERATING ACTIVITIES |
|
|
Net income (loss) |
90,982 |
|
(148,986 |
) |
Non-cash and non-operating items: |
|
|
Depreciation and amortization |
261,131 |
|
290,672 |
|
Unrealized (gain) loss on derivative instruments and loss on sale
of warrants |
(9,563 |
) |
20,007 |
|
Write-down and loss on sale of assets |
200,238 |
|
170,310 |
|
Gain on commencement of sales-type lease |
(44,943 |
) |
— |
|
Equity (income) loss, net of dividends received and return of
capital |
(5,575 |
) |
54,826 |
|
Foreign currency exchange loss and other |
99,016 |
|
44,835 |
|
Receipts from direct financing and sales-type leases |
340,931 |
|
17,073 |
|
Change in operating assets and liabilities |
99,172 |
|
(4,823 |
) |
Asset retirement obligation expenditures |
(17,458 |
) |
— |
|
Expenditures for drydocking |
(29,914 |
) |
(60,608 |
) |
Net operating cash flow |
984,017 |
|
383,306 |
|
|
|
|
FINANCING ACTIVITIES |
|
|
Proceeds from issuance of long-term debt, net of issuance
costs |
1,182,249 |
|
527,465 |
|
Prepayments of long-term debt |
(1,712,828 |
) |
(804,748 |
) |
Scheduled repayments of long-term debt and settlement of related
swaps |
(305,971 |
) |
(233,734 |
) |
Proceeds from short-term debt |
235,000 |
|
200,000 |
|
Prepayment of short-term debt |
(275,000 |
) |
(150,000 |
) |
Proceeds from financing related to sales-leaseback of vessels |
— |
|
381,526 |
|
Extinguishment of obligations related to finance leases |
(29,596 |
) |
(111,617 |
) |
Repayments of obligations related to finance leases |
(95,131 |
) |
(95,946 |
) |
Repurchase of Teekay LNG common units |
(15,635 |
) |
(25,729 |
) |
Distributions paid from subsidiaries to non-controlling
interests |
(79,803 |
) |
(63,343 |
) |
Cash dividends paid |
— |
|
(5,523 |
) |
Other financing activities |
(798 |
) |
(580 |
) |
Net financing cash flow |
(1,097,513 |
) |
(382,229 |
) |
|
|
|
INVESTING ACTIVITIES |
|
|
Expenditures for vessels and equipment, net of warranty
settlement |
(26,507 |
) |
(109,523 |
) |
Proceeds from sale of vessels and equipment |
60,915 |
|
31,523 |
|
Proceeds from the sale of assets, net of cash sold |
24,977 |
|
100,000 |
|
Capital contributions and advances to equity-accounted joint
ventures |
(991 |
) |
(72,391 |
) |
Proceeds from repayments of advances to equity-accounted joint
ventures |
14,650 |
|
— |
|
Other investing activities |
(9,983 |
) |
— |
|
Net investing cash flow |
63,061 |
|
(50,391 |
) |
|
|
|
Decrease in cash, cash equivalents and restricted
cash |
(50,435 |
) |
(49,314 |
) |
Cash, cash equivalents and restricted cash, beginning of the
year |
456,325 |
|
505,639 |
|
Cash, cash equivalents and restricted cash, end of the
year |
405,890 |
|
456,325 |
|
Teekay CorporationAppendix
A - Reconciliation of Non-GAAP Financial
MeasuresAdjusted Net Income (in thousands
of U.S. dollars, except per share data)
|
|
Three Months Ended |
Year Ended |
|
|
December 31, |
September 30, |
December 31, |
|
|
2020 |
2020 |
2020 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
|
|
|
$ Per |
|
$ Per |
|
$ Per |
|
|
$ |
Share(1) |
$ |
Share(1) |
$ |
Share(1) |
Net (loss) income – GAAP basis |
(45,132 |
) |
|
(41,388 |
) |
|
90,982 |
|
|
Adjust for: Net loss (income) attributable to |
|
|
|
|
|
|
non-controlling interests |
25,688 |
|
|
5,981 |
|
|
(173,915 |
) |
|
Net loss attributable to |
|
|
|
|
|
|
|
shareholders of Teekay |
(19,444 |
) |
(0.19 |
) |
(35,407 |
) |
(0.35 |
) |
(82,933 |
) |
(0.82 |
) |
Add (subtract) specific items affecting net
loss |
|
|
|
|
|
|
|
Unrealized (gains) losses from |
|
|
|
|
|
|
|
derivative instruments(2) |
(7,149 |
) |
(0.07 |
) |
(6,362 |
) |
(0.06 |
) |
36,384 |
|
0.36 |
|
|
Foreign currency exchange losses(3) |
10,826 |
|
0.11 |
|
4,275 |
|
0.04 |
|
14,130 |
|
0.14 |
|
|
Banff FPSO decommissioning costs |
|
|
|
|
|
|
|
net of (recoveries)(4) |
(1,550 |
) |
(0.02 |
) |
10,564 |
|
0.10 |
|
14,868 |
|
0.15 |
|
|
Write-down and loss on sale of vessels |
|
|
|
|
|
|
|
and other assets(5) |
28,689 |
|
0.28 |
|
66,872 |
|
0.66 |
|
200,836 |
|
1.99 |
|
|
Gain on commencement of sales-type lease(6) |
— |
|
— |
|
— |
|
— |
|
(44,943 |
) |
(0.44 |
) |
|
Restructuring charges, net of recoveries |
3,106 |
|
0.03 |
|
1,186 |
|
0.01 |
|
5,592 |
|
0.06 |
|
|
Other(7) |
25,272 |
|
0.25 |
|
22,657 |
|
0.22 |
|
38,561 |
|
0.38 |
|
|
Non-controlling interests’ share of items above(8) |
(36,901 |
) |
(0.36 |
) |
(48,556 |
) |
(0.48 |
) |
(99,445 |
) |
(0.98 |
) |
Total adjustments |
22,293 |
|
0.22 |
|
50,636 |
|
0.50 |
|
165,983 |
|
1.64 |
|
Adjusted net income attributable to |
|
|
|
|
|
|
|
shareholders of Teekay |
2,849 |
|
0.03 |
|
15,229 |
|
0.15 |
|
83,050 |
|
0.82 |
|
(1) |
Basic per share amounts. |
(2) |
Reflects unrealized (gains)
losses relating to the change in the mark-to-market value of
derivative instruments that are not designated in qualifying
hedging relationships for accounting purposes, including those
(gains) losses included in the Company's proportionate share of
equity income from joint ventures. |
(3) |
Foreign currency exchange losses
primarily relate to the Company’s debt denominated in Euros and
Norwegian Kroner (NOK) and unrealized losses on cross currency
swaps used to economically hedge the principal and interest on NOK
bonds. |
(4) |
In the first quarter of 2020, CNR
International (U.K.) Limited (or CNR) provided formal notice to the
Company of its intention to decommission the Banff field and remove
the Banff FPSO and the Apollo Spirit FSO from the field in June
2020. The oil production under the existing contract for the Banff
FPSO unit ceased in June 2020, and the Company commenced
decommissioning activities during the second quarter of 2020. |
(5) |
Refer to footnote (2) of the
Summary Consolidated Statements of (Loss) Income for additional
information. |
(6) |
Gain on commencement of
sales-type lease for the year ended December 31, 2020 relates to
the commencement of the sales-type lease for the Foinaven FPSO unit
as a result of a new bareboat charter agreement. |
(7) |
Other for the three months and
year ended December 31, 2020, and three months ended September 30,
2020, includes credit loss provision adjustments to the Company's
financial instruments upon adoption of ASU 2016-13. Other for the
three months and year ended December 31, 2020 also includes the
proportionate share of write-down of vessels in Teekay LNG's
equity-accounted investees, and adjustments to freight tax accruals
for periods prior to 2020. |
(8) |
Items affecting net income
include items from the Company’s consolidated non-wholly-owned
subsidiaries. The specific items affecting net income are analyzed
to determine whether any of the amounts originated from a
consolidated non-wholly-owned subsidiary. Each amount that
originates from a consolidated non-wholly-owned subsidiary is
multiplied by the non-controlling interests’ percentage share in
this subsidiary to determine the non-controlling interests’ share
of the amount. The amount identified as “Non-controlling interests’
share of items above” in the table above is the cumulative amount
of the non-controlling interests’ proportionate share of items
listed in the table. |
Teekay
CorporationAppendix A - Reconciliation of Non-GAAP
Financial MeasuresAdjusted Net Income
(Loss)(in thousands of U.S. dollars, except per share
data)
|
|
Three Months Ended |
Year Ended |
|
|
December 31, |
December 31, |
|
|
2019 |
2019 |
|
|
(unaudited) |
(unaudited) |
|
|
|
$ Per |
|
$ Per |
|
|
$ |
Share(1) |
$ |
Share(1) |
Net income (loss) – GAAP basis |
122,497 |
|
|
(148,986 |
) |
|
Adjust for: Net income attributable to |
|
|
|
|
|
non-controlling interests |
(111,154 |
) |
|
(161,591 |
) |
|
Net income (loss) attributable to |
|
|
|
|
|
shareholders of Teekay |
11,343 |
|
0.11 |
|
(310,577 |
) |
(3.08 |
) |
Add (subtract) specific items affecting net
loss |
|
|
|
|
|
Unrealized gains from non-designated derivative instruments(2) |
(12,488 |
) |
(0.12 |
) |
(5,923 |
) |
(0.06 |
) |
|
Foreign currency exchange losses(3) |
9,612 |
|
0.10 |
|
8,513 |
|
0.08 |
|
|
Write-down and (gain) loss on sale of vessels and |
|
|
|
|
|
other assets |
(8,803 |
) |
(0.09 |
) |
243,063 |
|
2.41 |
|
|
Restructuring charges, net of recoveries |
(612 |
) |
(0.01 |
) |
3,329 |
|
0.03 |
|
|
Other(4) |
18,710 |
|
0.19 |
|
59,304 |
|
0.59 |
|
|
Non-controlling interests’ share of items above(5) |
13,520 |
|
0.13 |
|
(16,820 |
) |
(0.17 |
) |
Total adjustments |
19,939 |
|
0.20 |
|
291,466 |
|
2.89 |
|
Adjusted net income (loss) attributable to |
|
|
|
|
|
shareholders of Teekay |
31,282 |
|
0.31 |
|
(19,111 |
) |
(0.19 |
) |
|
|
|
|
|
|
(1) |
Basic per share amounts. |
(2) |
Reflects unrealized gains
relating to the change in the mark-to-market value of derivative
instruments that are not designated in qualifying hedging
relationships for accounting purposes, including those gains
included in the Company's proportionate share of equity income
(loss) from joint ventures. |
(3) |
Foreign currency exchange losses
primarily relate to the Company’s debt denominated in Euros and
Norwegian Kroner (NOK) and unrealized losses on cross currency
swaps used to economically hedge the principal and interest on NOK
bonds. |
(4) |
Other for the three months and
year ended December 31, 2019 includes adjustments to freight tax
accruals for periods prior to 2019, and the impact of the Awilco
charter contracts being reclassified from operating leases to
sales-type leases. Other for the year ended December 31, 2019 also
includes upfront fees on the refinancing of a vessel, the realized
loss on sale of stock purchase warrants in Altera, a loss on the
repurchase of 2020 Notes, and the loan extinguishment costs related
to Teekay LNG's refinancing of one of its debt facilities. |
(5) |
Items affecting net income (loss)
include items from the Company’s consolidated non-wholly-owned
subsidiaries. The specific items affecting net income (loss) are
analyzed to determine whether any of the amounts originated from a
consolidated non-wholly-owned subsidiary. Each amount that
originates from a consolidated non-wholly-owned subsidiary is
multiplied by the non-controlling interests’ percentage share in
this subsidiary to determine the non-controlling interests’ share
of the amount. The amount identified as “Non-controlling interests’
share of items above” in the table above is the cumulative amount
of the non-controlling interests’ proportionate share of items
listed in the table. |
Teekay CorporationAppendix
B - Supplemental Financial InformationSummary
Statement of Income (Loss) for the Three Months Ended
December 31, 2020 (in thousands of U.S.
dollars)(unaudited)
|
|
Teekay |
Teekay |
Teekay |
Consolidation |
Total |
|
|
LNG |
Tankers |
Parent |
Adjustments(1) |
|
|
|
|
|
|
|
|
Revenues |
154,076 |
|
127,802 |
|
80,418 |
|
— |
362,296 |
|
|
|
|
|
|
|
|
Voyage expenses |
(5,798 |
) |
(58,649 |
) |
10 |
|
— |
(64,437 |
) |
Vessel operating expenses |
(31,243 |
) |
(41,030 |
) |
(72,678 |
) |
— |
(144,951 |
) |
Time-charter hire expense |
(6,294 |
) |
(8,096 |
) |
(2,327 |
) |
— |
(16,717 |
) |
Depreciation and amortization |
(32,883 |
) |
(28,043 |
) |
— |
|
— |
(60,926 |
) |
General and administrative expenses |
(6,689 |
) |
(10,049 |
) |
(2,472 |
) |
— |
(19,210 |
) |
Write-down of assets |
(6,000 |
) |
(24,282 |
) |
1,592 |
|
— |
(28,690 |
) |
Restructuring charges |
— |
|
— |
|
(1,570 |
) |
— |
(1,570 |
) |
Income (loss) from vessel operations |
65,169 |
|
(42,347 |
) |
2,973 |
|
— |
25,795 |
|
|
|
|
|
|
|
Interest expense |
(30,431 |
) |
(10,345 |
) |
(9,931 |
) |
— |
(50,707 |
) |
Interest income |
1,411 |
|
39 |
|
21 |
|
— |
1,471 |
|
Realized and unrealized (loss) gain on |
|
|
|
|
|
|
non-designated derivative instruments |
(3,020 |
) |
(390 |
) |
(43 |
) |
— |
(3,453 |
) |
Equity income (loss) |
15,359 |
|
(74 |
) |
— |
|
— |
15,285 |
|
Equity in earnings of subsidiaries (2) |
— |
|
— |
|
(8,814 |
) |
8,814 |
— |
|
Income tax (expense) recovery |
(1,364 |
) |
(19,030 |
) |
1,725 |
|
— |
(18,669 |
) |
Foreign exchange loss |
(6,618 |
) |
(1,268 |
) |
(4,613 |
) |
— |
(12,499 |
) |
Other (loss) income – net |
(1,721 |
) |
128 |
|
(762 |
) |
— |
(2,355 |
) |
Net income (loss) |
38,785 |
|
(73,287 |
) |
(19,444 |
) |
8,814 |
(45,132 |
) |
Net (income) loss attributable to |
|
|
|
|
|
|
non-controlling interests (3) |
(3,643 |
) |
— |
|
— |
|
29,331 |
25,688 |
|
Net income (loss) attributable to
shareholders/ |
|
|
|
|
|
|
unitholders of publicly-listed entities |
35,142 |
|
(73,287 |
) |
(19,444 |
) |
38,145 |
(19,444 |
) |
(1) |
Consolidation Adjustments column includes adjustments which
eliminate transactions between Teekay LNG, Teekay Tankers and
Teekay Parent. |
(2) |
Teekay Corporation’s
proportionate share of the net earnings of its publicly-traded
subsidiaries. |
(3) |
Net (income) loss attributable to
non-controlling interests in the Teekay LNG column represents the
joint venture partners’ share of the net income of its respective
consolidated joint ventures. Net (income) loss attributable to
non-controlling interest in the Consolidation Adjustments column
represents the public’s share of the net income of Teekay’s
publicly-traded consolidated subsidiaries. |
Teekay
CorporationAppendix B - Supplemental Financial
InformationSummary Statement of Income (loss) for
the Year Ended December 31, 2020 (in
thousands of U.S. dollars)(unaudited)
|
|
Teekay |
Teekay |
Teekay |
Consolidation |
Total |
|
|
LNG |
Tankers |
Parent |
Adjustments(1) |
|
|
|
|
|
|
|
|
Revenues |
591,103 |
|
886,434 |
|
338,135 |
|
— |
|
1,815,672 |
|
|
|
|
|
|
|
|
Voyage expenses |
(17,394 |
) |
(297,225 |
) |
(14 |
) |
— |
|
(314,633 |
) |
Vessel operating expenses |
(116,396 |
) |
(184,233 |
) |
(299,175 |
) |
— |
|
(599,804 |
) |
Time-charter hire expense |
(23,564 |
) |
(36,341 |
) |
(20,378 |
) |
— |
|
(80,283 |
) |
Depreciation and amortization |
(129,752 |
) |
(117,213 |
) |
(14,166 |
) |
— |
|
(261,131 |
) |
General and administrative expenses |
(26,904 |
) |
(39,006 |
) |
(13,318 |
) |
— |
|
(79,228 |
) |
Write-down and loss on sale of assets |
(51,000 |
) |
(69,446 |
) |
(79,792 |
) |
— |
|
(200,238 |
) |
Gain on commencement of sales-type lease |
— |
|
— |
|
44,943 |
|
— |
|
44,943 |
|
Restructuring charges |
— |
|
(1,398 |
) |
(9,321 |
) |
— |
|
(10,719 |
) |
Income (loss) from vessel operations |
226,093 |
|
141,572 |
|
(53,086 |
) |
— |
|
314,579 |
|
|
|
|
|
|
|
Interest expense |
(132,806 |
) |
(51,525 |
) |
(41,462 |
) |
146 |
|
(225,647 |
) |
Interest income |
6,884 |
|
1,199 |
|
405 |
|
(146 |
) |
8,342 |
|
Realized and unrealized loss on |
|
|
|
|
|
|
non-designated derivative instruments |
(33,334 |
) |
(2,220 |
) |
(303 |
) |
— |
|
(35,857 |
) |
Equity income |
72,233 |
|
5,100 |
|
— |
|
— |
|
77,333 |
|
Equity in earnings of subsidiaries (2) |
— |
|
— |
|
10,713 |
|
(10,713 |
) |
— |
|
Income tax (expense) recovery |
(3,492 |
) |
(7,283 |
) |
1,787 |
|
— |
|
(8,988 |
) |
Foreign exchange (loss) gain |
(21,356 |
) |
(734 |
) |
1,372 |
|
— |
|
(20,718 |
) |
Other (loss) income – net |
(16,910 |
) |
1,207 |
|
(2,359 |
) |
— |
|
(18,062 |
) |
Net income (loss) |
97,312 |
|
87,316 |
|
(82,933 |
) |
(10,713 |
) |
90,982 |
|
Net income attributable to |
|
|
|
|
|
|
non-controlling interests (3) |
(9,955 |
) |
— |
|
— |
|
(163,960 |
) |
(173,915 |
) |
Net income (loss) attributable to
shareholders/ |
|
|
|
|
|
|
unitholders of publicly-listed entities |
87,357 |
|
87,316 |
|
(82,933 |
) |
(174,673 |
) |
(82,933 |
) |
(1) |
Consolidation Adjustments column includes adjustments which
eliminate transactions between Teekay LNG, Teekay Tankers and
Teekay Parent. |
(2) |
Teekay Corporation’s
proportionate share of the net earnings of its publicly-traded
subsidiaries. |
(3) |
Net income attributable to
non-controlling interests in the Teekay LNG column represents the
joint venture partners’ share of the net income of its respective
consolidated joint ventures. Net income attributable to
non-controlling interest in the Consolidation Adjustments column
represents the public’s share of the net income of Teekay’s
publicly-traded consolidated subsidiaries. |
Teekay Corporation
Appendix C - Supplemental Financial Information
Teekay Parent Summary Operating Results
For the Three Months Ended December 31, 2020
(in thousands of U.S. dollars)(unaudited)
|
|
|
|
Teekay |
|
|
|
Corporate |
Parent |
|
FPSOs |
Other(1) |
G&A |
Total |
|
|
|
|
|
Revenues |
17,987 |
|
62,431 |
|
— |
|
80,418 |
|
|
|
|
|
|
Voyage expenses |
— |
|
10 |
|
— |
|
10 |
|
Vessel operating expenses |
(12,708 |
) |
(59,970 |
) |
— |
|
(72,678 |
) |
Time-charter hire expense |
— |
|
(2,327 |
) |
— |
|
(2,327 |
) |
General and administrative expenses |
(197 |
) |
— |
|
(2,275 |
) |
(2,472 |
) |
Write-down of vessels |
1,592 |
|
— |
|
— |
|
1,592 |
|
Restructuring charges |
(334 |
) |
(1,236 |
) |
— |
|
(1,570 |
) |
Income (loss) from vessel operations |
6,340 |
|
(1,092 |
) |
(2,275 |
) |
2,973 |
|
|
|
|
|
|
Adjustment for sales-type lease |
(207 |
) |
— |
|
— |
|
(207 |
) |
Daughter Entities distributions (2) |
— |
|
— |
|
9,379 |
|
9,379 |
|
Teekay Parent adjusted EBITDA |
4,541 |
|
(1,092 |
) |
7,104 |
|
10,553 |
|
(1) |
Includes the results relating to third-party management services as
well as one chartered-in FSO unit owned by Altera, which is on a
flow-through basis with Teekay Parent earning a small margin. |
(2) |
In addition to the adjusted
EBITDA generated by its directly owned and chartered-in assets,
Teekay Parent also receives cash distributions from its
consolidated publicly-traded subsidiary, Teekay LNG. For the three
months ended December 31, 2020, Teekay Parent received cash
distributions of $9.4 million from Teekay LNG, including those made
with respect to its general partner interests in Teekay LNG.
Distributions received for a given quarter consist of the amount of
distributions relating to such quarter but received by Teekay
Parent in the following quarter. Please refer to Appendix D of this
release for further details. |
Teekay CorporationAppendix
D - Reconciliation of Non-GAAP Financial
MeasuresTeekay Parent Free Cash Flow(in
thousands of U.S. dollars, except share and per share data)
|
|
Three Months Ended |
Year Ended |
|
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|
|
2020 |
2020 |
2019 |
2020 |
2019 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
Daughter Entities distributions to |
|
|
|
|
|
|
Teekay Parent (1) |
|
|
|
|
|
|
Teekay LNG |
|
|
|
|
|
|
Limited Partner interests (2) |
8,990 |
|
8,990 |
|
4,790 |
|
33,272 |
|
19,160 |
|
|
GP interests |
389 |
|
389 |
|
300 |
|
1,556 |
|
1,209 |
|
Total Daughter Entity Distributions to |
|
|
|
|
|
|
Teekay Parent |
9,379 |
|
9,379 |
|
5,090 |
|
34,828 |
|
20,369 |
|
|
|
|
|
|
|
|
|
FPSOs |
4,541 |
|
(7,376 |
) |
9,363 |
|
(2,033 |
) |
(6,935 |
) |
|
Other income and corporate general |
|
|
|
|
|
|
and administrative expenses |
|
|
|
|
|
|
Other (loss) income |
(1,092 |
) |
2,891 |
|
2,498 |
|
7,308 |
|
5,097 |
|
|
Corporate general and |
|
|
|
|
|
|
administrative expenses |
(2,275 |
) |
(1,623 |
) |
(3,129 |
) |
(11,446 |
) |
(13,152 |
) |
TEEKAY PARENT ADJUSTED EBITDA (3) |
10,553 |
|
3,271 |
|
13,822 |
|
28,657 |
|
5,379 |
|
|
|
|
|
|
|
Net interest expense (4) |
(7,937 |
) |
(8,237 |
) |
(8,879 |
) |
(33,426 |
) |
(39,408 |
) |
Asset retirement costs incurred (5) |
(2,263 |
) |
(12,169 |
) |
— |
|
(17,359 |
) |
— |
|
Upfront lease payment received in excess |
|
|
|
|
|
|
of revenue recognized (6) |
— |
|
— |
|
— |
|
56,127 |
|
— |
|
TOTAL TEEKAY PARENT FREE |
|
|
|
|
|
|
CASH FLOW |
353 |
|
(17,135 |
) |
4,943 |
|
33,999 |
|
(34,029 |
) |
|
|
|
|
|
|
Weighted-average number of |
|
|
|
|
|
|
common shares - Basic |
101,108,886 |
|
101,107,371 |
|
100,784,425 |
|
101,053,095 |
|
100,719,224 |
|
(1) |
Daughter Entities dividends and distributions for a given quarter
consist of the amount of dividends and distributions relating to
such quarter but received by Teekay Parent in the following
quarter. |
(2) |
Common unit distribution cash
flows to Teekay Parent are based on Teekay Parent’s ownership on
the ex-dividend date for its publicly-traded subsidiary, Teekay
LNG, for the periods as follows: |
|
|
Three Months Ended |
Year Ended |
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|
2020 |
2020 |
2019 |
2020 |
2019 |
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
Teekay LNG |
|
|
|
|
|
|
|
|
|
|
Distribution per common unit |
$ |
0.25 |
|
$ |
0.25 |
|
$ |
0.19 |
|
$ |
1.00 |
|
$ |
0.76 |
|
Common units owned by |
|
|
|
|
|
|
|
|
|
|
Teekay Parent |
|
35,958,274 |
|
|
35,958,274 |
|
|
25,208,274 |
|
|
35,958,274 |
|
|
25,208,274 |
|
Total distribution |
$ |
8,989,569 |
|
$ |
8,989,569 |
|
$ |
4,789,572 |
|
$ |
33,270,776 |
|
$ |
19,158,288 |
|
(3) |
Please refer to Appendices C and E for additional financial
information on Teekay Parent’s adjusted EBITDA. |
(4) |
Please see Appendix E to this
release for a description of this measure and a reconciliation of
this non-GAAP financial measure as used in this release to interest
expense net of interest income, the most directly comparable GAAP
financial measure. |
(5) |
Relates to decommissioning
activities for the Banff FPSO unit, which have been accrued on the
balance sheet as an asset retirement obligation. |
(6) |
Upfront lease payment relates to
cash received in early April 2020 in excess of revenue recognized
in the three months ended March 31, 2020 as a result of a new
bareboat charter agreement relating to the Foinaven FPSO unit.
Please refer to Summary Consolidated Statements of (Loss) Income
for additional information. |
Teekay
CorporationNon-GAAP Financial
Reconciliations
Teekay Corporation
Appendix E - Reconciliation of Non-GAAP Financial
Measures Adjusted EBITDA - Consolidated
(in thousands of U.S. dollars)
|
|
Three Months Ended |
|
|
December 31, |
September 30, |
December 31, |
|
|
2020 |
2020 |
2019
(1) |
|
(unaudited) |
(unaudited) |
(unaudited) |
Net (loss) income |
(45,132 |
) |
(41,388 |
) |
122,497 |
|
Depreciation and amortization |
60,926 |
|
64,352 |
|
71,083 |
|
Interest expense, net of interest income |
49,236 |
|
51,421 |
|
66,079 |
|
Income tax expense |
18,669 |
|
3,702 |
|
13,951 |
|
EBITDA |
83,699 |
|
78,087 |
|
273,610 |
|
Specific income statement items affecting EBITDA: |
|
|
|
|
Write-down and loss (gain) on sale of assets |
28,690 |
|
66,273 |
|
(8,803 |
) |
|
Adjustments for direct financing and sales-type lease to a cash
basis and other |
3,371 |
|
2,976 |
|
9,429 |
|
|
Realized and unrealized losses (gains) on derivative
instruments |
3,453 |
|
1,471 |
|
(4,592 |
) |
|
Realized (gains) losses from the settlements of non-designated
derivative instruments |
(810 |
) |
195 |
|
1,097 |
|
|
Equity income |
(15,285 |
) |
(24,392 |
) |
(31,900 |
) |
|
Foreign currency exchange loss |
12,499 |
|
5,943 |
|
10,721 |
|
|
Other loss - net (2) |
2,355 |
|
14,627 |
|
1,980 |
|
Consolidated Adjusted EBITDA |
117,972 |
|
145,180 |
|
251,542 |
|
Adjusted EBITDA from equity-accounted vessels (See Appendix E) |
83,089 |
|
81,818 |
|
73,923 |
|
Total Adjusted EBITDA |
201,061 |
|
226,998 |
|
325,465 |
|
(1) |
Comparative
balances relating to the three months ended December 31, 2019 have
been updated to reflect results as presented in the Company’s
Annual Report for the year ended December 31, 2019. |
(2) |
Please refer to footnote (8) of the Summary Consolidated
Statements of (Loss) Income of this release for further
details. |
Teekay Corporation
Appendix E - Reconciliation of Non-GAAP Financial
Measures Adjusted EBITDA - Consolidated
(in thousands of U.S. dollars)
|
|
Year Ended |
|
|
December 31, |
December 31, |
|
|
2020 |
2019 (1) |
|
(unaudited) |
(unaudited) |
Net income (loss) |
90,982 |
|
(148,986 |
) |
Depreciation and amortization |
261,131 |
|
290,672 |
|
Interest expense, net of interest income |
217,305 |
|
271,255 |
|
Income tax expense |
8,988 |
|
25,482 |
|
EBITDA |
578,406 |
|
438,423 |
|
Specific income statement items affecting EBITDA: |
|
|
|
Write-down and loss on sale of assets |
200,238 |
|
170,310 |
|
|
Gain on commencement of sales-type lease |
(44,943 |
) |
— |
|
|
Adjustments for direct financing and sales-type lease to a cash
basis and other |
11,762 |
|
17,505 |
|
|
Realized and unrealized losses on derivative instruments |
35,857 |
|
13,719 |
|
|
Realized (gains) losses from the settlements of non-designated
derivative instruments |
(864 |
) |
1,532 |
|
|
Equity (income) loss |
(77,333 |
) |
14,523 |
|
|
Foreign currency exchange loss |
20,718 |
|
13,574 |
|
|
Other loss - net (1) |
18,062 |
|
14,475 |
|
Consolidated Adjusted EBITDA |
741,903 |
|
684,061 |
|
Adjusted EBITDA from equity-accounted vessels (See Appendix E) |
344,223 |
|
267,852 |
|
Total Adjusted EBITDA |
1,086,126 |
|
951,913 |
|
(1) |
Comparative balances relating to the year ended December 31, 2019
have been updated to reflect results as presented in the Company’s
Annual Report for the year ended December 31, 2019. |
Teekay Corporation
Appendix E - Reconciliation of Non-GAAP Financial
Measures Adjusted EBITDA – Equity-Accounted
Vessels (in thousands of U.S. dollars)
|
|
Three Months Ended |
|
|
December 31, 2020 |
September 30, 2020 |
December 31, 2019 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
|
|
At |
Company's |
At |
Company's |
At |
Company's |
|
|
100% |
Portion(1) |
100% |
Portion(1) |
100% |
Portion(1) |
Revenues |
249,460 |
|
107,964 |
|
248,474 |
|
107,619 |
|
223,716 |
|
100,267 |
|
Vessel and other operating expenses |
(77,168 |
) |
(33,836 |
) |
(77,966 |
) |
(34,522 |
) |
(73,139 |
) |
(32,600 |
) |
Depreciation and amortization |
(24,699 |
) |
(12,814 |
) |
(27,436 |
) |
(13,804 |
) |
(29,609 |
) |
(14,392 |
) |
Write-down of vessels |
(34,000 |
) |
(17,000 |
) |
— |
|
— |
|
— |
|
— |
|
Income from vessel operations of equity-accounted
vessels |
113,593 |
|
44,314 |
|
143,072 |
|
59,293 |
|
120,968 |
|
53,275 |
|
|
|
|
|
|
|
|
Net interest expense |
(66,493 |
) |
(26,922 |
) |
(61,774 |
) |
(25,228 |
) |
(62,291 |
) |
(25,821 |
) |
Income tax expense |
(2,863 |
) |
(1,080 |
) |
(449 |
) |
(235 |
) |
(200 |
) |
(107 |
) |
Other items including realized and unrealized |
|
|
|
|
|
|
|
loss on derivative instruments (2) |
(4,485 |
) |
(1,027 |
) |
(26,624 |
) |
(9,438 |
) |
12,823 |
|
4,553 |
|
Net income / equity income of equity-accounted
vessels |
39,752 |
|
15,285 |
|
54,225 |
|
24,392 |
|
71,300 |
|
31,900 |
|
|
|
|
|
|
|
|
|
Net income / equity income |
|
|
|
|
|
|
|
of equity-accounted vessels |
39,752 |
|
15,285 |
|
54,225 |
|
24,392 |
|
71,300 |
|
31,900 |
|
Depreciation and amortization |
24,699 |
|
12,814 |
|
27,436 |
|
13,804 |
|
29,609 |
|
14,392 |
|
Net interest expense |
66,493 |
|
26,922 |
|
61,774 |
|
25,228 |
|
62,291 |
|
25,821 |
|
Income tax expense |
2,863 |
|
1,080 |
|
449 |
|
235 |
|
200 |
|
107 |
|
EBITDA |
133,807 |
|
56,101 |
|
143,884 |
|
63,659 |
|
163,400 |
|
72,220 |
|
Specific income statement items affecting EBITDA: |
|
|
|
|
|
|
Adjustments for direct financing and sales-type lease to a cash
basis |
27,387 |
|
9,917 |
|
26,752 |
|
9,677 |
|
19,286 |
|
7,212 |
|
|
Write-down of vessels |
34,000 |
|
17,000 |
|
— |
|
— |
|
— |
|
— |
|
|
Amortization of in-process contracts and other |
(1,759 |
) |
(956 |
) |
(1,759 |
) |
(956 |
) |
(1,758 |
) |
(956 |
) |
|
Other items including realized and unrealized loss (gain) on
derivative instruments(2) |
4,485 |
|
1,027 |
|
26,624 |
|
9,438 |
|
(12,823 |
) |
(4,553 |
) |
Adjusted EBITDA from equity-accounted vessels
(3) |
197,920 |
|
83,089 |
|
195,501 |
|
81,818 |
|
168,105 |
|
73,923 |
|
(1) |
The Company’s proportionate share of its equity-accounted vessels
and other investments ranged from 20% to 52%. |
(2) |
Includes credit loss provision
adjustments recorded upon the adoption of ASU 2016-13 for the three
months ended December 31, 2020 and September 30, 2020. |
(3) |
Adjusted EBITDA from
equity-accounted vessels represents the Company’s proportionate
share of adjusted EBITDA from its equity-accounted vessels and
other investments. |
Teekay Corporation
Appendix E - Reconciliation of Non-GAAP Financial
Measures Adjusted EBITDA – Equity-Accounted
Vessels (in thousands of U.S. dollars)
|
|
Year Ended |
|
|
December 31, 2020 |
December 31, 2019 |
|
|
(unaudited) |
(unaudited) |
|
|
At |
Company's |
At |
Company's |
|
|
100% |
Portion(1) |
100% |
Portion(1) |
Revenues |
1,024,961 |
|
444,059 |
|
1,100,576 |
|
385,529 |
|
Vessel and other operating expenses |
(303,763 |
) |
(134,162 |
) |
(421,592 |
) |
(138,293 |
) |
Depreciation and amortization |
(104,774 |
) |
(53,065 |
) |
(201,478 |
) |
(68,921 |
) |
Write-down of vessels |
(34,000 |
) |
(17,000 |
) |
— |
|
— |
|
Income from vessel operations of equity-accounted
vessels |
582,424 |
|
239,832 |
|
477,506 |
|
178,315 |
|
|
|
|
|
|
Net interest expense |
(277,936 |
) |
(112,259 |
) |
(278,572 |
) |
(99,567 |
) |
Income tax expense |
(3,685 |
) |
(1,504 |
) |
(6,078 |
) |
(1,757 |
) |
Other items including realized and unrealized loss on |
|
|
|
|
|
derivative instruments (2) |
(151,821 |
) |
(48,736 |
) |
(85,088 |
) |
(18,911 |
) |
Write-down and loss on sale of equity-accounted |
|
|
|
|
|
investments (3) |
— |
|
— |
|
— |
|
(72,603 |
) |
Net income / equity income (loss) of equity-accounted
vessels |
148,982 |
|
77,333 |
|
107,768 |
|
(14,523 |
) |
|
|
|
|
|
|
Net income / equity income (loss) of |
|
|
|
|
|
equity-accounted vessels |
148,982 |
|
77,333 |
|
107,768 |
|
(14,523 |
) |
Depreciation and amortization |
104,774 |
|
53,065 |
|
201,478 |
|
68,921 |
|
Net interest expense |
277,936 |
|
112,259 |
|
278,572 |
|
99,567 |
|
Income tax expense |
3,685 |
|
1,504 |
|
6,078 |
|
1,757 |
|
EBITDA |
535,377 |
|
244,161 |
|
593,896 |
|
155,722 |
|
Specific income statement items affecting EBITDA: |
|
|
|
|
|
Adjustments for direct financing and sales-type |
|
|
|
|
|
lease to a cash basis |
105,496 |
|
38,118 |
|
67,807 |
|
24,574 |
|
|
Write-down of vessels |
34,000 |
|
17,000 |
|
— |
|
— |
|
|
Amortization of in-process contracts and other |
(6,974 |
) |
(3,792 |
) |
(6,974 |
) |
(3,793 |
) |
|
Other items including realized and unrealized loss on |
|
|
|
|
|
derivative instruments(2) |
151,822 |
|
48,736 |
|
83,913 |
|
18,746 |
|
|
Loss on sale of equity-accounted investments |
— |
|
— |
|
— |
|
72,603 |
|
Adjusted EBITDA from equity-accounted vessels
(4)(5) |
819,721 |
|
344,223 |
|
738,642 |
|
267,852 |
|
(1) |
For the year ended December 31, 2020, the Company’s proportionate
share of its equity-accounted vessels and other investments ranged
from 20% to 52%. For the year ended December 31, 2019, the
Company’s proportionate share of its equity-accounted vessels and
other investments, ranged from 20% to 52%, excluding its investment
in Altera which was 14% until the sale thereof in May 2019. |
(2) |
For the year ended December 31,
2020, includes credit loss provision adjustments recorded upon the
adoption of ASU 2016-13. |
(3) |
For the year ended December 31,
2019, includes a write-down and loss on sale of the Company's
investment in Altera. |
(4) |
Adjusted EBITDA from
equity-accounted vessels represents the Company’s proportionate
share of adjusted EBITDA from its equity accounted vessels and
other investments. |
(5) |
The Company sold its investment
in Altera in May 2019 and consequently did not include any share of
Altera's adjusted EBITDA for the last three quarters of 2019. |
Teekay Corporation
Appendix E - Reconciliation of Non-GAAP Financial
MeasuresAdjusted EBITDA - Teekay Parent
(in thousands of U.S. dollars)
|
Three Months Ended September 30, 2020 |
|
(unaudited) |
|
|
|
|
|
Teekay |
|
|
|
|
Corporate |
Parent |
|
FPSOs |
Other |
G&A |
Total |
|
|
|
|
|
|
|
|
Teekay Parent loss from vessel operations |
|
(20,586 |
) |
|
(6,811 |
) |
(1,623 |
) |
|
(29,020 |
) |
Write-down of assets |
|
12,200 |
|
|
9,100 |
|
— |
|
|
21,300 |
|
Depreciation and amortization |
|
1,759 |
|
|
— |
|
— |
|
|
1,759 |
|
Amortization of operating lease liability and other |
|
(749 |
) |
|
602 |
|
— |
|
|
(147 |
) |
Daughter Entities distributions |
|
— |
|
|
— |
|
9,379 |
|
|
9,379 |
|
Adjusted EBITDA – Teekay Parent |
|
(7,376 |
) |
|
2,891 |
|
7,756 |
|
|
3,271 |
|
|
Three Months Ended December 31, 2019 |
|
(unaudited) |
|
|
|
|
|
Teekay |
|
|
|
|
Corporate |
Parent |
|
FPSOs |
Other |
G&A |
Total |
|
|
|
|
|
|
|
|
Teekay Parent income (loss) from vessel operations |
|
4,792 |
|
|
1,861 |
(3,129 |
) |
|
3,524 |
|
Write-down of vessels |
|
2 |
|
|
— |
— |
|
|
2 |
|
Depreciation and amortization |
|
6,052 |
|
|
35 |
— |
|
|
6,087 |
|
Amortization of in-process revenue contracts and other |
|
(1,483 |
) |
|
602 |
— |
|
|
(881 |
) |
Daughter Entities distributions |
|
— |
|
|
— |
5,090 |
|
|
5,090 |
|
Adjusted EBITDA – Teekay Parent |
|
9,363 |
|
|
2,498 |
1,961 |
|
|
13,822 |
|
Teekay Corporation
Appendix E - Reconciliation of Non-GAAP Financial
MeasuresAdjusted EBITDA - Teekay Parent
(in thousands of U.S. dollars)
|
Year Ended December 31, 2020 |
|
(unaudited) |
|
|
|
|
|
Teekay |
|
|
|
|
Corporate |
Parent |
|
FPSOs |
Other |
G&A |
Total |
|
|
|
|
|
|
|
|
Teekay Parent loss from vessel operations |
|
(38,054 |
) |
|
(3,586 |
) |
(11,446 |
) |
|
(53,086 |
) |
Write-down of assets |
|
70,692 |
|
|
9,100 |
|
— |
|
|
79,792 |
|
Gain on commencement of sales-type lease |
|
(44,943 |
) |
|
— |
|
— |
|
|
(44,943 |
) |
Depreciation and amortization |
|
14,166 |
|
|
— |
|
— |
|
|
14,166 |
|
Amortization of operating lease liability and other |
|
(3,894 |
) |
|
1,794 |
|
— |
|
|
(2,100 |
) |
Daughter Entities distributions |
|
— |
|
|
— |
|
34,828 |
|
|
34,828 |
|
Adjusted EBITDA – Teekay Parent |
|
(2,033 |
) |
|
7,308 |
|
23,382 |
|
|
28,657 |
|
|
Year Ended December 31, 2019 |
|
(unaudited) |
|
|
|
|
|
Teekay |
|
|
|
|
Corporate |
Parent |
|
FPSOs |
Other |
G&A |
Total |
|
|
|
|
|
|
|
|
Teekay Parent (loss) income from vessel operations |
|
(208,167 |
) |
|
2,225 |
(13,152 |
) |
|
(219,094 |
) |
Write-down of vessels |
|
178,330 |
|
|
— |
— |
|
|
178,330 |
|
Depreciation and amortization |
|
29,710 |
|
|
195 |
— |
|
|
29,905 |
|
Amortization of in-process revenue contracts and other |
|
(6,808 |
) |
|
2,677 |
— |
|
|
(4,131 |
) |
Daughter Entities distributions |
|
— |
|
|
— |
20,369 |
|
|
20,369 |
|
Adjusted EBITDA – Teekay Parent |
|
(6,935 |
) |
|
5,097 |
7,217 |
|
|
5,379 |
|
Teekay Corporation
Appendix E - Reconciliation of Non-GAAP Financial
Measures Net Interest Expense - Teekay
Parent (in thousands of U.S. dollars)
|
|
Three Months Ended |
Year Ended |
|
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|
|
2020 |
2020 |
2019 |
2020 |
2019 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
Interest expense |
(50,707 |
) |
(53,175 |
) |
(67,476 |
) |
(225,647 |
) |
(279,059 |
) |
Interest income |
1,471 |
|
1,754 |
|
1,397 |
|
8,342 |
|
7,804 |
|
Interest expense net of interest income |
|
|
|
|
|
|
consolidated |
(49,236 |
) |
(51,421 |
) |
(66,079 |
) |
(217,305 |
) |
(271,255 |
) |
Less: Non-Teekay Parent interest |
|
|
|
|
|
|
expense net of interest income |
(39,326 |
) |
(41,338 |
) |
(55,322 |
) |
(176,248 |
) |
(225,027 |
) |
|
|
|
|
|
|
|
Interest expense net of interest income - |
|
|
|
|
|
|
Teekay Parent |
(9,910 |
) |
(10,083 |
) |
(10,757 |
) |
(41,057 |
) |
(46,228 |
) |
Teekay Parent non-cash accretion and |
|
|
|
|
|
|
loan cost amortization |
2,376 |
|
2,188 |
|
2,161 |
|
8,970 |
|
7,823 |
|
Teekay Parent realized losses on |
|
|
|
|
|
|
interest rate swaps |
(403 |
) |
(342 |
) |
(283 |
) |
(1,339 |
) |
(1,003 |
) |
Net interest expense - Teekay Parent |
(7,937 |
) |
(8,237 |
) |
(8,879 |
) |
(33,426 |
) |
(39,408 |
) |
Forward Looking Statements
This release contains forward-looking statements
(as defined in Section 21E of the Securities Exchange Act of 1934,
as amended) which reflect management’s current views with respect
to certain future events and performance, including statements,
among other things, regarding: the impact of COVID-19, market
volatility and related global events on the Company’s business and
financial results, including the impact and timing of coronavirus
vaccination programs; estimated fluctuations in global oil demand
and supply levels, including anticipated future fluctuations in
global oil inventories and the timing thereof; forecasts of
worldwide tanker fleet growth or contraction and vessel scrapping;
the future outlook of the tanker market; fixed charter coverage for
Teekay LNG’s fleet for 2021 and 2022; the expected increase in
Teekay LNG’s common unit distribution commencing in the first
quarter of 2021 (and the coverage of such increased distribution
payments), as well as the effect thereof on Teekay Parent’s free
cash flows and on Teekay LNG’s delevering plans and investor
returns; the timing of the delivery of the Teekay Tankers’
newbuilding subject to a new long-term in-charter agreement; Teekay
Tankers’ plans to potentially finance, and the timing of closing,
the re-purchase of sale-leaseback vessels; the financial impact and
timing of closing additional vessel sales; continued receipt of
terminal use payments in respect of the Bahrain LNG regasification
terminal; and the timing of commencement of new charter
contracts.
The following factors are among those that could
cause actual results to differ materially from the forward-looking
statements, which involve risks and uncertainties, and that should
be considered in evaluating any such statement: market or
counterparty reaction to changes in exploration, production and
storage of offshore oil and gas, either generally or in particular
regions that would impact expected future growth; changes in the
demand for oil, refined products, LNG or LPG; changes in trading
patterns significantly affecting overall vessel tonnage
requirements; greater or less than anticipated levels of vessel
newbuilding orders and deliveries and greater or less than
anticipated rates of vessel scrapping; changes in global oil prices
or tanker rates; OPEC+ and non-OPEC production and supply levels;
the duration and extent of the COVID-19 pandemic and any resulting
effects on the markets in which the Company operates; the impact of
the pandemic on the Company’s ability to maintain safe and
efficient operations; the impact and timing of coronavirus
vaccination programs; issues with vessel operations; higher than
expected costs and expenses, off-hire days or dry-docking
requirements (both scheduled and unscheduled); higher than expected
costs and/or delays associated with the remediation of the Banff
field or the decommission/recycling of the Banff FPSO unit; changes
in applicable industry laws and regulations and the timing of
implementation of new laws and regulations, including IMO 2030; the
potential for early termination of long-term contracts of existing
vessels; changes in borrowing costs or equity valuations;
declaration by Teekay LNG’s board of directors of common unit
distributions; potential lack of cash flow for Teekay LNG to
continue paying distributions on its common units and other
securities; available cash to reduce financial leverage at Teekay
Parent, Teekay LNG and Teekay Tankers; the impact of geopolitical
tensions and changes in global economic conditions; the ability to
partially recover severance costs from the termination of the
contract for an FSO unit based in Australia; and other factors
discussed in Teekay’s filings from time to time with the SEC,
including its Annual Report on Form 20-F for the fiscal year ended
December 31, 2019. Teekay expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change
in Teekay’s expectations with respect thereto or any change in
events, conditions or circumstances on which any such statement is
based.
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