Teekay Corporation (Teekay or the Company) (NYSE:TK) today reported
results for the fourth quarter and year ended December 31,
2019. 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 2019 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, |
|
2019 |
2019 |
2018 |
2019 |
2018 |
(in thousands of U.S. dollars, except
per share amounts) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
TEEKAY CORPORATION
CONSOLIDATED |
|
|
|
|
GAAP FINANCIAL COMPARISON |
|
|
|
|
|
Revenues |
562,865 |
|
420,696 |
|
491,532 |
|
1,922,441 |
|
1,707,758 |
|
Income (loss) from
vessel operations |
177,516 |
|
(130,389 |
) |
88,811 |
|
202,822 |
|
164,319 |
|
Equity income
(loss) |
31,900 |
|
21,514 |
|
19,356 |
|
(14,523 |
) |
61,054 |
|
Net income (loss)
attributable to |
|
|
|
|
|
|
shareholders of Teekay |
11,343 |
|
(198,178 |
) |
(18,353 |
) |
(310,577 |
) |
(79,237 |
) |
Income (loss) per share attributable to |
|
|
|
|
|
|
shareholders of Teekay |
0.11 |
|
(1.97 |
) |
(0.18 |
) |
(3.08 |
) |
(0.79 |
) |
NON-GAAP FINANCIAL COMPARISON |
|
|
|
|
|
Total adjusted revenues(1) |
663,132 |
|
512,186 |
|
628,270 |
|
2,307,970 |
|
2,178,292 |
|
Total adjusted EBITDA(1) (2) |
324,245 |
|
192,880 |
|
246,675 |
|
950,693 |
|
775,633 |
|
Adjusted net income (loss) attributable |
|
|
|
|
|
|
to shareholders of Teekay(1) |
31,282 |
|
(24,070 |
) |
(2,014 |
) |
(19,111 |
) |
(53,271 |
) |
Adjusted net income (loss) per share |
|
|
|
|
|
|
attributable to shareholders of Teekay(1) |
0.31 |
|
(0.24 |
) |
(0.02 |
) |
(0.19 |
) |
(0.53 |
) |
TEEKAY PARENT |
|
|
|
|
|
NON-GAAP FINANCIAL COMPARISON |
|
|
|
|
|
Teekay Parent
adjusted EBITDA(1) |
13,822 |
|
(10,068 |
) |
3,081 |
|
5,379 |
|
52,762 |
|
Total Teekay
Parent free cash flow(1) |
4,943 |
|
(18,782 |
) |
(11,000 |
) |
(34,029 |
) |
(8,573 |
) |
- 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).
- Total Adjusted EBITDA in the year ended December 31, 2019
included $22.3 million related to the Company's ownership interest
in Teekay Offshore Partners L.P. (to be renamed Altera
Infrastructure L.P.) (Altera), which was sold in the second quarter
of 2019. Total Adjusted EBITDA in the fourth quarter and year ended
December 31, 2018 included $35.0 million and $94.6 million,
respectively, related to the Company's ownership interest in
Altera.
CEO Commentary
“The fourth quarter of 2019 marked a return to
profitability for Teekay, as we recorded consolidated adjusted net
income of $31 million, or $0.31 per share, and saw our total
adjusted EBITDA increase by approximately $113 million, or 53
percent, from the same period of the prior year, excluding the
contribution related to our equity interest in Altera
Infrastructure, which was sold in May 2019. The increase can
be attributed to higher earnings from Teekay Tankers as a result of
significantly stronger spot tanker rates during the quarter, from
Teekay LNG as a result of the delivery and contract commencement of
various growth projects, and from our three directly-owned FPSO
units, combined with lower general and administrative expenses
across the group,” commented Kenneth Hvid, Teekay’s President and
CEO.
“We have continued to execute on our strategic
priorities that were laid out at our recent Teekay Group Investor
Day,” Mr. Hvid continued. “Teekay LNG has now completed its growth
projects, which are expected to provide significant earnings and
cash flow growth in 2020, while continuing to delever its balance
sheet and returning capital to unitholders. Teekay Tankers took
advantage of the strong tanker market and fixed out four Suezmax
tankers at attractive levels and secured a new five-year, $533
million revolving credit facility, while also continuing to delever
its balance sheet with significant cash flows from the strong spot
tanker market and the proceeds from opportunistic asset sales.
Taking into account the operating cash flows generated in the
fourth quarter of 2019 and the impact of agreed asset sales, Teekay
Tankers' proforma net debt(1) has decreased by approximately $153
million, or 15 percent, since the end of the third quarter of
2019.”
Mr. Hvid added, “Looking ahead to 2020, we
expect to continue to build balance sheet strength across the group
and, despite the recent market volatility and the uncertainty on
the impacts of the coronavirus, we expect our cash flows and
earnings to be stronger in 2020 compared with 2019. By virtue
of Teekay LNG's current 97 percent fixed employment in 2020 and 92
percent in 2021 for its LNG fleet, we are well-insulated from the
current weak spot LNG shipping market, and we expect to continue
benefitting from these stable cash flows. Meanwhile, we
believe Teekay Tankers' attractive operating leverage and ongoing
balance sheet delevering, position us for increased tanker cash
flows on the back of positive underlying tanker supply and demand
fundamentals in the medium-term.”
(1) Net debt is a non-GAAP financial measure and
represents short-term, current and long-term debt and current and
long-term obligations related to finance leases less cash and cash
equivalents and restricted cash.
Summary of Results
Teekay Corporation Consolidated
The Company's consolidated results during the
quarter ended December 31, 2019 increased compared to the same
period of the prior year, primarily due to: higher average spot
tanker rates earned by Teekay Tankers in the fourth quarter of
2019; higher earnings in Teekay LNG in 2019 due to the delivery and
contract commencement of several newbuildings during the past year,
as well as higher revenues earned from certain existing LNG
carriers and multi-gas vessels; and lower corporate general and
administrative expenses incurred in 2019.
In addition, lower losses on derivatives in 2019
also contributed positively to our GAAP net income in the three
months ended December 31, 2019 compared with our GAAP net loss in
the same quarter of the prior year.
Total adjusted EBITDA(1) in the fourth quarter
of 2018 included $35.0 million related to Teekay Parent's ownership
interest in Altera, which was sold in the second quarter of
2019.
Teekay Parent
Total Teekay Parent Free Cash Flow(1) was $4.9
million during the fourth quarter of 2019, compared to negative
$11.0 million for the same period of the prior year, primarily due
to: lower net interest expense(1) due to the repurchase of
unsecured bonds over the past year and the bond refinancing
completed in May 2019; higher contribution from the Petrojarl Banff
FPSO unit due to higher oil price-linked revenue and lower
maintenance costs; lower operating costs related to the Sevan
Hummingbird FPSO unit; lower corporate general and administrative
expenses incurred in 2019; and a 36 percent increase in Teekay
LNG’s quarterly cash distribution commencing in the first quarter
of 2019. Please refer to Appendix D of this release for
additional information about Teekay Parent's Free Cash Flow(1).
In addition, GAAP net income was positively
impacted in the three months ended December 31, 2019, compared
to GAAP net loss for the same quarter of the prior year, by various
items, including lower losses on derivatives in 2019. These
increases were partially offset by lower equity income in 2019 due
to the sale of Magnora ASA (Magnora), formerly Sevan Marine ASA, in
the fourth quarter of 2018 and the sale of Teekay Parent's
remaining interest in Altera in May 2019.
(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 adjusted net income and total
adjusted EBITDA(1) for the three months ended December 31, 2019,
compared to the same quarter of the prior year, were positively
impacted by: the deliveries of two wholly-owned LNG carrier
newbuildings (the Sean Spirit and Yamal Spirit) between December
2018 and January 2019; higher earnings from the Torben Spirit LNG
carrier upon redeployment in December 2018 at a higher charter
rate; higher spot revenues for seven multi-gas carriers and higher
charter rates earned in Teekay LNG's 50 percent-owned joint venture
with Exmar NV during the fourth quarter of 2019; the deliveries of
four joint venture ARC7 LNG carrier newbuildings between June and
December 2019; the delivery of one joint venture LNG carrier
newbuilding in January 2019; and higher earnings from Teekay LNG’s
52 percent-owned joint venture with Marubeni Corporation as a
result of the one-year charter contracts for two joint venture LNG
vessels, the Arwa Spirit and Marib Spirit, that were secured at
higher rates in June and July 2019, respectively, and a decrease in
off-hire days for certain LNG carriers.
These increases were partially offset by the
sale of four conventional tankers, the African Spirit, European
Spirit, Toledo Spirit and Alexander Spirit, between October 2018
and October 2019.
In addition, GAAP net income attributable to the
partners and preferred unitholders was positively impacted for the
three months ended December 31, 2019, compared to the same
quarter of the prior year, by various items, including unrealized
gains on non-designated derivative instruments in the fourth
quarter of 2019 compared to losses on non-designated derivative
instruments in the fourth quarter of 2018; and a gain upon
derecognition of two LNG carriers that were previously on charter
to Awilco LNG ASA (Awilco) and reclassification as sales-type
leases in the fourth quarter of 2019.
Please refer to Teekay LNG's fourth quarter 2019
earnings release for additional information on the financial
results for this entity.
Teekay Tankers
Teekay Tankers' net income, adjusted net
income(1), and total adjusted EBITDA(1) for the three months ended
December 31, 2019 significantly increased compared to the same
period of the prior year, primarily due to higher average spot
tanker rates earned in the fourth quarter of 2019.
Teekay Tankers has so far secured spot tanker
rates for its Suezmax and Aframax/LR2 Product tankers of $51,700
per day and $38,600 per day based on 77 percent and 63 percent of
the available spot revenue days fixed to-date in the first quarter
of 2020, respectively, compared to $39,100 per day and $33,000 per
day in the fourth quarter of 2019, respectively.
(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 LNG
In January 2020, Bahrain LNG W.L.L. (BLNG), in
which Teekay LNG owns a 30 percent interest, announced that it had
completed the mechanical construction and commissioning of the
Bahrain Regasification Terminal (Terminal) and that the customer
had commenced payments to BLNG under its 20-year terminal use
agreement. BLNG also reported that the customer is looking
forward to the commencement of commercial operations of the
Terminal. The Bahrain Spirit FSU (which is 100 percent-owned by
Teekay LNG) continues to be chartered to BLNG. Depending on
the seasonal requirements for regasification services by the
Terminal, BLNG may trade the Bahrain Spirit FSU in the short-term
LNG shipping market. Regardless of the deployment strategy utilized
by the customer, BLNG will receive its full contractual payments
from the customer of the Terminal, and Teekay LNG will continue to
receive its full, fixed-rate charter-hire for the Bahrain Spirit
FSU from BLNG.
In January 2020, Awilco fulfilled its obligation
to repurchase two of Teekay LNG's LNG carriers, Wilforce and
Wilpride, for a total of over $260 million. Teekay LNG received net
cash proceeds of over $100 million after the repayment of
approximately $157 million of debt secured by these two
vessels.
In November and December 2019, Teekay LNG took
delivery of the fifth and sixth 50 percent-owned ARC7 LNG carrier
newbuildings, respectively, the Georgiy Ushakov and Yakov Gakkel,
which immediately commenced their 26-year charter contracts
servicing the Yamal LNG project.
On October 16, 2019, Teekay LNG sold its last
remaining conventional tanker, the Alexander Spirit, for net
proceeds of $11.5 million.
In December 2018, the board of directors of
Teekay LNG's general partner approved a $100 million common unit
repurchase program. Since that time, Teekay LNG has repurchased a
total of 2.8 million common units, or approximately 3.5 percent of
the outstanding common units immediately prior to commencement of
the program, for a total cost of $36.3 million, representing an
average repurchase price of $12.85 per unit.
Teekay Tankers
Since November 2019, Teekay Tankers has entered
into agreements to sell three 2003-built and one 2004-built Suezmax
tankers in separate transactions for combined sales proceeds of
approximately $78 million. The first three vessels were delivered
to their respective buyers between December 2019 and February 2020,
with the fourth vessel expected to be delivered in April 2020.
In December 2019, Teekay Tankers entered into a
one-year charter-out contract for a Suezmax tanker at approximately
$36,000 per day, which commenced in December 2019.
In January 2020, Teekay Tankers entered into the
previously-announced $533 million long-term debt facility to
refinance 31 vessels. The proceeds from the new debt facility were
used to repay approximately $455 million of Teekay Tankers'
existing debt. The new debt facility has substantially similar
terms to the previous debt facilities that it replaced and extends
balloon maturities from 2020/2021 until the end of 2024. Following
the closing of the debt facility, Teekay Tankers had three
unencumbered vessels, two of which have been agreed to be sold as
highlighted above. In addition, as a result of the refinancing,
over $52 million of Teekay Parent debt guarantees of Teekay
Tankers' debt were eliminated.
In January 2020, Teekay Tankers reached an
agreement to sell a portion of its oil and gas ship-to-ship
transfer support services business, which also provides gas
terminal management and gas consulting services, for approximately
$26 million. The sale is expected to close late in the first
quarter of 2020 or early in the second quarter of 2020. Teekay
Tankers will retain its entire Full Service Lightering business
that operates in the U.S. Gulf, which provides ship-to-ship oil
transfers for both U.S. crude imports and exports. In addition,
Teekay Tankers will continue to operate oil ship-to-ship transfer
support services in North America and the Caribbean, a business
that has synergies with its core Full Service Lightering
business.
Liquidity
As at December 31, 2019, Teekay Parent had
total liquidity of approximately $195.3 million (consisting of
$104.2 million of cash and cash equivalents and $91.1 million of
undrawn revolving credit facilities) and, on a consolidated basis,
Teekay had consolidated total liquidity of approximately $672.0
million (consisting of $354.4 million of cash and cash equivalents,
including cash held for sale, and $317.6 million of undrawn
revolving credit facilities).
Conference Call
The Company plans to host a conference call on
Thursday, February 27, 2020 at 11:00 a.m. (ET) to discuss its
results for the fourth quarter and year ended December 31, 2019.
All shareholders and interested parties are invited to listen to
the live conference call by choosing from the following
options:
- By dialing (800) 367-2403 or (647) 490-5367, if outside North
America, and quoting conference ID code 9284962.
- 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
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 and also provides
offshore production and logistics. 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 owner and operator 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 $11 billion, comprised of approximately 140 liquefied
gas, offshore, and conventional tanker assets. With offices in 12
countries and approximately 5,700 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, Total Adjusted Revenues, Net Interest Expense and Adjusted
Equity Income, and commencing in the first quarter of 2019,
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.
In 2018 and prior periods, the Company reported
Cash Flow from Vessel Operations (CFVO), as a non-GAAP measure. In
the first quarter of 2019, the Company made certain changes to its
non-GAAP financial measures to more closely align with internal
management reporting, Company reporting in its SEC Annual Report on
Form 20-F and metrics used by certain investors. CFVO from
Consolidated Vessels and Total CFVO are replaced with Consolidated
Adjusted EBITDA and Total Adjusted EBITDA, respectively, for
current and comparative periods.
Non-GAAP Financial Measures
Total Adjusted EBITDA represents net income
(loss) before interest, taxes, depreciation and amortization,
foreign exchange gain (loss), items included in other (loss)
income, write-down and (loss) gain on sale of vessels, equipment
and other operating assets, amortization of in-process revenue
contracts, adjustments for direct financing leases to a cash basis,
unrealized gains (losses) on derivative instruments, realized
losses on interest rate swaps, realized losses on interest rate
swap amendments and terminations, loss on deconsolidation of
Altera, write-downs related to equity-accounted investments, and
our share of the above items in non-consolidated joint ventures
which are accounted for using the equity method of accounting.
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 income
(loss) and equity (loss) income, respectively, which are the most
directly comparable GAAP measures reflected in the Company’s
consolidated financial statements.
Total Adjusted Revenues represents the Company's
revenues from its consolidated vessels, as shown in the Company's
Consolidated Statements of Income (Loss), and its proportionate
ownership percentage of the revenues from its equity-accounted
joint ventures, as shown in Appendix E of this release. Please
refer to Appendix E of this release for a reconciliation of this
non-GAAP financial measure to revenues and equity income, the most
directly comparable GAAP measure reflected in the Company's
consolidated financial statements. 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.
Adjusted Net Income (Loss) Attributable to
Shareholders of Teekay excludes items of income or loss from GAAP
net income (loss) 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 income
(loss), and refer to footnote (3) of the statements of income
(loss) 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 (a) 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) and its equity-accounted investment in Altera prior to it
being sold in May 2019, net of Teekay Parent’s corporate general
and administrative expenditures for the given quarter and (b)
Adjusted EBITDA attributed to Teekay Parent’s directly-owned and
chartered-in assets. Teekay Parent Free Cash Flow represents Teekay
Parent Adjusted EBITDA, less Teekay Parent’s net interest expense
and dry-dock expenditures for the given quarter. Net Interest
Expense includes interest expense (excluding 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 CorporationSummary Consolidated Statements of Income
(Loss)(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, |
|
2019 |
2019 |
2018 |
2019 |
2018 |
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|
|
|
|
|
|
Revenues |
562,865 |
|
420,696 |
|
491,532 |
|
1,922,441 |
|
1,707,758 |
|
|
|
|
|
|
|
Voyage expenses |
(107,455 |
) |
(92,689 |
) |
(117,199 |
) |
(401,947 |
) |
(388,887 |
) |
Vessel operating expenses |
(165,216 |
) |
(159,616 |
) |
(162,268 |
) |
(644,445 |
) |
(637,474 |
) |
Time-charter hire expense |
(31,174 |
) |
(28,932 |
) |
(25,434 |
) |
(118,761 |
) |
(86,458 |
) |
Depreciation and
amortization |
(71,083 |
) |
(73,633 |
) |
(71,069 |
) |
(290,672 |
) |
(276,307 |
) |
General and administrative
expenses |
(17,588 |
) |
(20,016 |
) |
(26,751 |
) |
(81,444 |
) |
(96,555 |
) |
Write-down and gain (loss) on
sale of vessels (1) |
8,803 |
|
(175,785 |
) |
— |
|
(170,310 |
) |
(53,693 |
) |
Restructuring charges |
(1,636 |
) |
(414 |
) |
— |
|
(12,040 |
) |
(4,065 |
) |
Income (loss) from vessel operations |
177,516 |
|
(130,389 |
) |
88,811 |
|
202,822 |
|
164,319 |
|
|
|
|
|
|
|
Interest expense |
(67,476 |
) |
(67,707 |
) |
(72,632 |
) |
(279,059 |
) |
(254,126 |
) |
Interest income |
1,397 |
|
1,485 |
|
2,650 |
|
7,804 |
|
8,525 |
|
Realized and unrealized gain
(loss) on |
|
|
|
|
|
non-designated
derivative instruments (2) |
4,592 |
|
(1,924 |
) |
(32,833 |
) |
(13,719 |
) |
(14,852 |
) |
Equity income (loss) (3) |
31,900 |
|
21,514 |
|
19,356 |
|
(14,523 |
) |
61,054 |
|
Income tax expense (4) |
(12,731 |
) |
(3,091 |
) |
(6,727 |
) |
(24,262 |
) |
(19,724 |
) |
Foreign exchange (loss)
gain |
(10,721 |
) |
5,628 |
|
(5,764 |
) |
(13,574 |
) |
6,140 |
|
Loss on deconsolidation of
Altera |
— |
|
— |
|
— |
|
— |
|
(7,070 |
) |
Other
(loss) income – net (5) |
(1,980 |
) |
(1,424 |
) |
782 |
|
(14,475 |
) |
(2,013 |
) |
Net income
(loss) |
122,497 |
|
(175,908 |
) |
(6,357 |
) |
(148,986 |
) |
(57,747 |
) |
Net income attributable
to |
|
|
|
|
|
non-controlling
interests |
(111,154 |
) |
(22,270 |
) |
(11,996 |
) |
(161,591 |
) |
(21,490 |
) |
Net income (loss) attributable to the
shareholders |
|
|
|
|
|
of Teekay Corporation |
11,343 |
|
(198,178 |
) |
(18,353 |
) |
(310,577 |
) |
(79,237 |
) |
Income (loss) per common share
of Teekay Corporation |
|
|
|
|
|
- Basic |
$ |
0.11 |
|
$ |
(1.97 |
) |
$ |
(0.18 |
) |
$ |
(3.08 |
) |
$ |
(0.79 |
) |
- Diluted |
$ |
0.11 |
|
$ |
(1.97 |
) |
$ |
(0.18 |
) |
$ |
(3.08 |
) |
$ |
(0.79 |
) |
Weighted-average number of
common |
|
|
|
|
|
shares outstanding |
|
|
|
|
|
- Basic |
100,784,425 |
|
100,784,683 |
|
100,435,155 |
|
100,719,224 |
|
99,670,176 |
|
- Diluted |
101,425,574 |
|
100,784,683 |
|
100,435,155 |
|
100,719,224 |
|
99,670,176 |
|
(1) Write-down and loss on sales of vessels for the year ended
December 31, 2019 and three months ended September 30, 2019
includes $175.0 million relating to the write-down of two FPSO
units owned by Teekay Parent. Write-down and loss on sales of
vessels for the three months and year ended December 31, 2019
includes a $14.3 million gain upon derecognition of the vessels and
reclassification as sales-type leases as a result of Awilco
fulfilling its obligation to repurchase from Teekay LNG the
WilPride and WilForce LNG carriers.
(2) Realized and unrealized gains (losses) 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 income (loss).
The realized losses 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, |
|
|
2019 |
2019 |
2018 |
2019 |
2018 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
Realized (losses)
gains relating to |
|
|
|
|
|
|
Interest rate swap
agreements |
(2,576 |
) |
(2,247 |
) |
(2,354 |
) |
(8,296 |
) |
(13,898 |
) |
|
Interest rate swap agreement
terminations |
— |
|
— |
|
— |
|
— |
|
(13,681 |
) |
|
Foreign currency forward
contracts |
(147 |
) |
— |
|
— |
|
(147 |
) |
— |
|
|
Stock purchase
warrants(i) |
— |
|
— |
|
— |
|
(25,559 |
) |
— |
|
|
Forward
freight agreements |
1,097 |
|
435 |
|
274 |
|
1,490 |
|
137 |
|
|
|
(1,626 |
) |
(1,812 |
) |
(2,080 |
) |
(32,512 |
) |
(27,442 |
) |
Unrealized gains
(losses) relating to |
|
|
|
|
|
|
Interest rate swap
agreements |
6,961 |
|
(623 |
) |
(10,469 |
) |
(7,878 |
) |
33,700 |
|
|
Foreign currency forward
contracts |
336 |
|
(435 |
) |
— |
|
(200 |
) |
— |
|
|
Stock purchase
warrants(i) |
— |
|
— |
|
(20,202 |
) |
26,900 |
|
(21,053 |
) |
|
Forward
freight agreements |
(1,079 |
) |
946 |
|
(82 |
) |
(29 |
) |
(57 |
) |
|
|
6,218 |
|
(112 |
) |
(30,753 |
) |
18,793 |
|
12,590 |
|
Total
realized and unrealized gains (losses) on derivative
instruments |
4,592 |
|
(1,924 |
) |
(32,833 |
) |
(13,719 |
) |
(14,852 |
) |
- Relates to the sale of the Company's remaining interest in
Altera in May 2019. Also refer to (3) below.
(3) 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 income (loss), the Company believes the resulting
adjusted equity income is a normalized amount that can be used to
evaluate the financial performance of the Company’s
equity-accounted investments. Adjusted equity income is a non-GAAP
financial measure.
|
|
Three Months
Ended |
Year
Ended |
|
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|
|
2019 |
2019 |
2018 |
2019 |
2018 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
Equity income
(loss) |
31,900 |
|
21,514 |
|
19,356 |
|
(14,523 |
) |
61,054 |
|
Proportionate
share of unrealized (gains) losses |
|
|
|
|
|
|
on derivative
instruments |
(6,271 |
) |
5,170 |
|
15,387 |
|
12,867 |
|
(17,600 |
) |
Loss on
sale/write-down of investment in |
|
|
|
|
|
|
Altera(i) |
— |
|
— |
|
— |
|
72,753 |
|
— |
|
Other |
1,436 |
|
(150 |
) |
(10,411 |
) |
2,309 |
|
4,122 |
|
Equity
income adjusted for items in Appendix A |
27,065 |
|
26,534 |
|
24,332 |
|
73,406 |
|
47,576 |
|
- During the year ended December 31, 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 Brookfield Business Partners L.P. (or Brookfield), which
occurred in May 2019. Also refer to (2) above in respect of
gains and losses on stock purchase warrants.
(4) Income tax expense for the three
months and year ended December 31, 2019, includes adjustments to
freight tax accruals.(5) Other loss for the year ended
December 31, 2019 includes $10.6 million relating to the repurchase
of the Company's 2020 bonds.
Teekay CorporationSummary Consolidated Balance Sheets(in
thousands of U.S. dollars)
|
As at December 31, |
As at September 30, |
As at December 31, |
|
2019 |
2019 |
2018 |
|
(unaudited) |
(unaudited) |
(unaudited) |
ASSETS |
|
|
Cash and cash
equivalents - Teekay Parent |
104,196 |
|
73,796 |
|
220,238 |
|
Cash and cash
equivalents - Teekay LNG |
160,221 |
|
142,860 |
|
149,014 |
|
Cash and cash
equivalents - Teekay Tankers |
88,824 |
|
76,705 |
|
54,917 |
|
Current portion of
loans and advances to |
|
|
|
|
equity-accounted investments
(1) |
82,174 |
|
99,314 |
|
169,197 |
|
Assets held for
sale |
65,458 |
|
11,515 |
|
— |
|
Accounts
receivable and other current assets (1) |
393,745 |
|
296,186 |
|
251,527 |
|
Restricted cash -
Teekay Parent |
2,048 |
|
1,946 |
|
2,030 |
|
Restricted cash -
Teekay LNG |
93,070 |
|
91,671 |
|
73,850 |
|
Restricted cash -
Teekay Tankers |
6,508 |
|
5,778 |
|
5,590 |
|
Vessels and
equipment - Teekay Parent |
95,984 |
|
102,031 |
|
304,049 |
|
Vessels and
equipment - Teekay LNG |
3,027,342 |
|
3,303,126 |
|
3,242,581 |
|
Vessels and
equipment - Teekay Tankers |
1,750,166 |
|
1,836,138 |
|
1,883,561 |
|
Operating lease
right-of-use assets (2) |
159,638 |
|
177,052 |
|
— |
|
Advances on
newbuilding contracts |
— |
|
— |
|
86,942 |
|
Net investment in
direct financing leases |
818,809 |
|
561,437 |
|
575,163 |
|
Investments in and
loans to equity-accounted investments |
1,099,795 |
|
1,034,713 |
|
1,193,741 |
|
Other
non-current assets |
131,766 |
|
137,510 |
|
179,270 |
|
Total Assets |
8,079,744 |
|
7,951,778 |
|
8,391,670 |
|
LIABILITIES AND EQUITY |
|
|
Accounts payable
and other current liabilities (1) |
420,430 |
|
379,594 |
|
266,585 |
|
Liabilities
associated with assets held for sale |
2,980 |
|
— |
|
— |
|
Advances from
equity-accounted investments (1) |
18,647 |
|
24,895 |
|
75,292 |
|
Short-term
debt |
50,000 |
|
50,000 |
|
— |
|
Current portion of
long-term debt - Teekay Parent |
86,674 |
|
36,663 |
|
— |
|
Current portion of
long-term debt - Teekay LNG |
669,047 |
|
460,230 |
|
217,120 |
|
Current portion of
long-term debt - Teekay Tankers |
68,930 |
|
126,170 |
|
127,132 |
|
Long-term debt -
Teekay Parent |
349,403 |
|
347,830 |
|
614,341 |
|
Long-term debt -
Teekay LNG |
2,573,253 |
|
2,795,767 |
|
3,051,212 |
|
Long-term debt -
Teekay Tankers |
905,537 |
|
903,724 |
|
983,563 |
|
Operating lease
liabilities (2) |
148,602 |
|
165,414 |
|
— |
|
Other long-term
liabilities |
214,648 |
|
212,591 |
|
189,397 |
|
Equity: |
|
|
|
Non-controlling
interests |
2,089,730 |
|
1,983,896 |
|
2,058,037 |
|
Shareholders of Teekay |
481,863 |
|
465,004 |
|
808,991 |
|
Total
Liabilities and Equity |
8,079,744 |
|
7,951,778 |
|
8,391,670 |
|
|
|
|
|
|
Net debt - Teekay
Parent (3) |
329,833 |
|
308,751 |
|
392,073 |
|
Net debt - Teekay
LNG (3) |
2,989,009 |
|
3,021,466 |
|
3,045,468 |
|
Net
debt - Teekay Tankers (3) |
929,135 |
|
997,411 |
|
1,050,188 |
|
(1) Subsequent to the sale of the
Company's remaining interest in Altera in May 2019, amounts
receivable and payable to Altera are presented in accounts
receivable and accounts payable, respectively. These were
previously presented in current portion of loans and advances to
equity-accounted investments, and advances from equity-accounted
investments, respectively.
(2) Upon adoption of the new
lease accounting standard on January 1, 2019, the Company's
long-term chartered-in vessels, with lease terms of more than one
year, are now treated as operating lease right-of-use assets and
operating lease liabilities. This resulted in an increase in the
Company’s assets and liabilities by $148.6 million at December 31,
2019, and by $165.4 million at September 30, 2019.
(3) 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 CorporationSummary Consolidated Statements of Cash
Flows(in thousands of U.S. dollars)
|
Year Ended |
|
December 31, |
|
2019 |
2018 |
|
(unaudited) |
(unaudited) |
Cash, cash equivalents and
restricted cash provided by (used for) |
|
|
OPERATING
ACTIVITIES |
|
|
Net loss |
(148,986 |
) |
(57,747 |
) |
Non-cash and non-operating
items: |
|
|
Depreciation and
amortization |
290,672 |
|
276,307 |
|
Unrealized loss (gain)
on derivative instruments |
20,007 |
|
(34,570 |
) |
Write-down and loss on
sales of vessels |
170,310 |
|
53,693 |
|
Equity income, net of
dividends received |
54,826 |
|
(44,312 |
) |
Foreign currency
exchange loss and other |
44,835 |
|
48,208 |
|
Direct financing lease
payments received |
17,073 |
|
— |
|
Change in operating assets and
liabilities |
(4,823 |
) |
(14,754 |
) |
Expenditures for dry
docking |
(60,608 |
) |
(44,690 |
) |
Net operating cash flow |
383,306 |
|
182,135 |
|
|
|
|
FINANCING
ACTIVITIES |
|
|
Proceeds from issuance of
long-term debt, net of issuance costs |
527,465 |
|
1,325,482 |
|
Prepayments of long-term
debt |
(804,748 |
) |
(771,827 |
) |
Scheduled repayments of
long-term debt |
(233,734 |
) |
(671,803 |
) |
Proceeds from short-term
debt |
200,000 |
|
— |
|
Prepayment of short-term
debt |
(150,000 |
) |
— |
|
Proceeds from financing
related to sales-leaseback of vessels |
381,526 |
|
611,388 |
|
Prepayment of obligations
related to finance leases |
(111,617 |
) |
— |
|
Repayments of obligations
related to finance leases |
(95,946 |
) |
(74,680 |
) |
Net proceeds from equity
issuances of Teekay Corporation |
— |
|
103,655 |
|
Repurchase of Teekay LNG
common units |
(25,729 |
) |
— |
|
Distributions paid from
subsidiaries to non-controlling interests |
(63,343 |
) |
(64,676 |
) |
Cash dividends paid |
(5,523 |
) |
(22,082 |
) |
Other financing
activities |
(580 |
) |
(671 |
) |
Net financing cash flow |
(382,229 |
) |
434,786 |
|
|
|
|
INVESTING
ACTIVITIES |
|
|
Expenditures for vessels and
equipment |
(109,523 |
) |
(693,792 |
) |
Proceeds from sale of vessels
and equipment |
31,523 |
|
28,837 |
|
Proceeds from sale of
equity-accounted investments and related assets |
100,000 |
|
81,823 |
|
Investment in equity-accounted
investments |
(72,391 |
) |
(41,018 |
) |
Loans to joint ventures and
joint venture partners |
— |
|
(24,934 |
) |
Cash of transferred
subsidiaries on sale, net of proceeds received |
— |
|
(25,254 |
) |
Direct financing lease
payments received |
— |
|
10,882 |
|
Other investing
activities |
— |
|
— |
|
Net investing cash flow |
(50,391 |
) |
(663,456 |
) |
|
|
|
Decrease in cash, cash
equivalents and restricted cash |
(49,314 |
) |
(46,535 |
) |
Cash, cash equivalents and
restricted cash, beginning of the year |
505,639 |
|
552,174 |
|
Cash, cash equivalents and restricted cash, end of the
year |
456,325 |
|
505,639 |
|
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, |
September 30, |
December 31, |
|
|
2019 |
2019 |
2019 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
|
|
|
$
Per |
|
$
Per |
|
$
Per |
|
|
$ |
Share(1) |
$ |
Share(1) |
$ |
Share(1) |
Net income
(loss) – GAAP basis |
122,497 |
|
|
(175,908 |
) |
|
(148,986 |
) |
|
Adjust for: Net
income attributable to |
|
|
|
|
|
|
non-controlling interests |
(111,154 |
) |
|
(22,270 |
) |
|
(161,591 |
) |
|
Net income
(loss) attributable to |
|
|
|
|
|
|
|
shareholders of Teekay |
11,343 |
|
0.11 |
|
(198,178 |
) |
(1.97 |
) |
(310,577 |
) |
(3.08 |
) |
Add
(subtract) specific items affecting net loss |
|
|
|
|
|
|
|
Unrealized (gains) losses from
derivative |
|
|
|
|
|
|
|
instruments(2) |
(12,488 |
) |
(0.12 |
) |
5,283 |
|
0.05 |
|
(5,923 |
) |
(0.06 |
) |
|
Foreign exchange losses
(gains)(3) |
9,612 |
|
0.10 |
|
(7,059 |
) |
(0.07 |
) |
8,513 |
|
0.08 |
|
|
Write-down and (gain) loss on
sale of vessels and |
|
|
|
|
|
|
|
other assets |
(8,803 |
) |
(0.09 |
) |
175,785 |
|
1.74 |
|
243,063 |
|
2.41 |
|
|
Restructuring charges, net of
recoveries |
(612 |
) |
(0.01 |
) |
414 |
|
— |
|
3,329 |
|
0.03 |
|
|
Other(4) |
18,710 |
|
0.19 |
|
1,267 |
|
0.01 |
|
59,304 |
|
0.59 |
|
|
Non-controlling interests’ share of items above(5) |
13,520 |
|
0.13 |
|
(1,582 |
) |
(0.02 |
) |
(16,820 |
) |
(0.17 |
) |
Total
adjustments |
19,939 |
|
0.20 |
|
174,108 |
|
1.71 |
|
291,466 |
|
2.89 |
|
Adjusted
net income (loss) attributable to |
|
|
|
|
|
|
|
shareholders of Teekay |
31,282 |
|
0.31 |
|
(24,070 |
) |
(0.24 |
) |
(19,111 |
) |
(0.19 |
) |
- Basic per share amounts.
- 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 (loss) from joint
ventures.
- Foreign currency exchange losses (gains) primarily relate to
the Company’s debt denominated in Euros and Norwegian Kroner (NOK)
and unrealized losses on cross currency swaps used to economically
hedge the principal and interest on NOK bonds. Nearly all of the
Company’s foreign currency exchange gains and losses are
unrealized.
- Other for the three months 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 three months
ended September 30, 2019 includes upfront fees on the refinancing
of a vessel. Other for the year ended December 31, 2019 also
includes the realized loss on sale of stock purchase warrants in
Altera and a loss on the repurchase of 2020 bonds.
- 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 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, |
|
|
2018 |
2018 |
|
|
(unaudited) |
(unaudited) |
|
|
|
$
Per |
|
$
Per |
|
|
$ |
Share(1) |
$ |
Share(1) |
Net loss –
GAAP basis |
(6,357 |
) |
|
(57,747 |
) |
|
Adjust for: Net
income attributable to |
|
|
|
|
non-controlling interests |
(11,996 |
) |
|
(21,490 |
) |
|
Net loss
attributable to |
|
|
|
|
|
shareholders of Teekay |
(18,353 |
) |
(0.18 |
) |
(79,237 |
) |
(0.79 |
) |
Add
(subtract) specific items affecting net loss |
|
|
|
|
|
Unrealized losses (gains) from
derivative |
|
|
|
|
|
instruments(2) |
46,140 |
|
0.46 |
|
(30,930 |
) |
(0.31 |
) |
|
Foreign exchange losses
(gains)(3) |
4,526 |
|
0.04 |
|
(16,723 |
) |
(0.17 |
) |
|
Write-down and loss on sale of
vessels and |
|
|
|
|
|
other assets(4) |
3,697 |
|
0.04 |
|
63,635 |
|
0.64 |
|
|
Restructuring charges(5) |
— |
|
— |
|
2,611 |
|
0.03 |
|
|
Loss on deconsolidation of
Altera |
— |
|
— |
|
7,070 |
|
0.07 |
|
|
Realized loss on interest rate
swap |
|
|
|
|
|
terminations and amendments(6) |
— |
|
— |
|
14,560 |
|
0.15 |
|
|
Other(7) |
(12,526 |
) |
(0.12 |
) |
5,482 |
|
0.06 |
|
|
Non-controlling interests’ share of items above(8) |
(25,498 |
) |
(0.26 |
) |
(19,739 |
) |
(0.21 |
) |
Total
adjustments |
16,339 |
|
0.16 |
|
25,966 |
|
0.26 |
|
Adjusted
net loss attributable to |
|
|
|
|
|
shareholders of Teekay |
(2,014 |
) |
(0.02 |
) |
(53,271 |
) |
(0.53 |
) |
- Basic per share amounts.
- Reflects unrealized losses (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 losses (gains) included in the Company's
proportionate share of equity income (loss) from joint ventures,
and hedge ineffectiveness from derivative instruments designated as
hedges for accounting purposes.
- Foreign currency exchange losses (gains) primarily relate to
the Company’s debt denominated in Euros and Norwegian Kroner (NOK)
and unrealized losses on cross currency swaps used to economically
hedge the principal and interest on NOK bonds. Nearly all of the
Company’s foreign currency exchange gains and losses are
unrealized.
- Includes the Company's proportionate share of write-downs and
gain (loss) on sale of vessels and other operating assets in
equity-accounted joint ventures and the consolidated write-downs
and gain (loss) on sale of vessels and other operating assets.
- Restructuring charges for the year ended December 31, 2018,
primarily relate to severance costs resulting from reorganization
and realignment of resources of certain of the Company's business
development, marine solutions and fleet operations functions to
better respond to the changing business environment, and the
Company's proportionate share of restructuring charges related to
severance costs from crew reduction on the Petrojarl
Varg FPSO in Altera.
- Refer to footnote (2) of the summary consolidated statements of
loss for the three months and year ended December 31, 2018.
- Includes the write-off of prepaid loan costs by Teekay LNG and
Teekay Tankers relating to the refinancing of certain vessels and a
gain on bond repurchase by the company. Also refer to footnote (3)
of the summary consolidated statements of income (loss) for more
detail on items relating to equity-accounted joint ventures.
- Items affecting net loss include items from the Company’s
consolidated non-wholly-owned subsidiaries. The specific items
affecting net loss are analyzed to determine whether any of the
amounts originated from a consolidated non-wholly-owned subsidiary.
Each amount that originates from a consolidated non-wholly-owned
subsidiary is multiplied by the non-controlling interests’
percentage share in this subsidiary to determine the
non-controlling interests’ share of the amount. The amount
identified as “Non-controlling interests’ share of items above” in
the table above is the cumulative amount of the non-controlling
interests’ proportionate share of items listed in the table.
Teekay CorporationAppendix B - Supplemental Financial
InformationSummary Statement of Income for the Three Months Ended
December 31, 2019(in thousands of U.S. dollars)(unaudited)
|
|
Teekay |
Teekay |
Teekay |
Consolidation |
Total |
|
|
LNG |
Tankers |
Parent |
Adjustments(1) |
|
|
|
|
|
|
|
|
Revenues |
148,797 |
|
303,885 |
|
112,059 |
|
(1,876 |
) |
562,865 |
|
|
|
|
|
|
|
|
Voyage
expenses |
(4,628 |
) |
(102,831 |
) |
(16 |
) |
20 |
|
(107,455 |
) |
Vessel operating
expenses |
(30,706 |
) |
(51,875 |
) |
(82,635 |
) |
— |
|
(165,216 |
) |
Time-charter hire
expense |
(5,987 |
) |
(12,312 |
) |
(14,703 |
) |
1,828 |
|
(31,174 |
) |
Depreciation and
amortization |
(33,053 |
) |
(31,943 |
) |
(6,087 |
) |
— |
|
(71,083 |
) |
General and
administrative expenses |
(4,829 |
) |
(8,992 |
) |
(3,195 |
) |
(572 |
) |
(17,588 |
) |
Write-down and
gain (loss) on sale of vessels |
14,349 |
|
(5,544 |
) |
(2 |
) |
— |
|
8,803 |
|
Restructuring
charges |
(339 |
) |
|
(1,897 |
) |
600 |
|
(1,636 |
) |
|
|
|
|
|
|
|
Income
from vessel operations |
83,604 |
|
90,388 |
|
3,524 |
|
— |
|
177,516 |
|
|
|
|
|
|
|
Interest
expense |
(40,712 |
) |
(15,679 |
) |
(11,147 |
) |
62 |
|
(67,476 |
) |
Interest
income |
922 |
|
147 |
|
390 |
|
(62 |
) |
1,397 |
|
Realized and
unrealized gain on |
|
|
|
|
|
|
non-designated derivative
instruments |
4,352 |
|
205 |
|
35 |
|
— |
|
4,592 |
|
Equity income |
30,207 |
|
1,693 |
|
— |
|
— |
|
31,900 |
|
Equity in earnings
of subsidiaries(2) |
— |
|
— |
|
22,994 |
|
(22,994 |
) |
— |
|
Income tax
(expense) recovery |
(985 |
) |
(13,195 |
) |
1,449 |
|
— |
|
(12,731 |
) |
Foreign exchange
loss |
(4,545 |
) |
(615 |
) |
(5,561 |
) |
— |
|
(10,721 |
) |
Other
(loss) income – net |
(1,767 |
) |
128 |
|
(341 |
) |
— |
|
(1,980 |
) |
Net
income |
71,076 |
|
63,072 |
|
11,343 |
|
(22,994 |
) |
122,497 |
|
Net income
attributable to |
|
|
|
|
|
|
non-controlling interests(3) |
(3,706 |
) |
— |
|
— |
|
(107,448 |
) |
(111,154 |
) |
Net income
attributable to shareholders/ |
|
|
|
|
|
|
unitholders of publicly-listed entities |
67,370 |
|
63,072 |
|
11,343 |
|
(130,442 |
) |
11,343 |
|
- Consolidation Adjustments column includes adjustments which
eliminate transactions between Teekay LNG, Teekay Tankers and
Teekay Parent.
- Teekay Corporation’s proportionate share of the net earnings of
its publicly-traded subsidiaries.
- 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 CorporationAppendix B - Supplemental
Financial InformationSummary Statement of Income (Loss) for the
Year Ended December 31, 2019(in thousands of U.S.
dollars)(unaudited)
|
|
Teekay |
Teekay |
Teekay |
Consolidation |
Total |
|
|
LNG |
Tankers |
Parent |
Adjustments(1) |
|
|
|
|
|
|
|
|
Revenues |
601,256 |
|
920,967 |
|
413,806 |
|
(13,588 |
) |
1,922,441 |
|
|
|
|
|
|
|
|
Voyage
expenses |
(21,387 |
) |
(380,564 |
) |
(43 |
) |
47 |
|
(401,947 |
) |
Vessel operating
expenses |
(111,585 |
) |
(208,601 |
) |
(326,238 |
) |
1,979 |
|
(644,445 |
) |
Time-charter hire
expense |
(19,994 |
) |
(43,189 |
) |
(67,139 |
) |
11,561 |
|
(118,761 |
) |
Depreciation and
amortization |
(136,765 |
) |
(124,002 |
) |
(29,905 |
) |
— |
|
(290,672 |
) |
General and
administrative expenses |
(22,521 |
) |
(36,404 |
) |
(22,520 |
) |
1 |
|
(81,444 |
) |
Write-down and
gain (loss) on sale of vessels |
13,564 |
|
(5,544 |
) |
(178,330 |
) |
— |
|
(170,310 |
) |
Restructuring
charges |
(3,315 |
) |
— |
|
(8,725 |
) |
— |
|
(12,040 |
) |
|
|
|
|
|
|
|
Income
(loss) from vessel operations |
299,253 |
|
122,663 |
|
(219,094 |
) |
— |
|
202,822 |
|
|
|
|
|
|
|
Interest
expense |
(164,521 |
) |
(65,362 |
) |
(49,431 |
) |
255 |
|
(279,059 |
) |
Interest
income |
3,985 |
|
871 |
|
3,203 |
|
(255 |
) |
7,804 |
|
Realized and
unrealized (loss) gain on |
|
|
|
|
|
|
non-designated derivative
instruments |
(13,361 |
) |
(967 |
) |
609 |
|
— |
|
(13,719 |
) |
Equity income
(loss) |
58,819 |
|
2,345 |
|
(75,687 |
) |
— |
|
(14,523 |
) |
Equity in earnings
of subsidiaries(2) |
— |
|
— |
|
44,375 |
|
(44,375 |
) |
— |
|
Income tax
(expense) recovery |
(7,477 |
) |
(18,883 |
) |
2,098 |
|
— |
|
(24,262 |
) |
Foreign exchange
loss |
(9,640 |
) |
486 |
|
(4,420 |
) |
— |
|
(13,574 |
) |
Other
(loss) income – net |
(2,454 |
) |
209 |
|
(12,230 |
) |
— |
|
(14,475 |
) |
Net income
(loss) |
164,604 |
|
41,362 |
|
(310,577 |
) |
(44,375 |
) |
(148,986 |
) |
Net income
attributable to |
|
|
|
|
|
|
non-controlling interests(3) |
(11,814 |
) |
— |
|
— |
|
(149,777 |
) |
(161,591 |
) |
Net income
(loss) attributable to shareholders/ |
|
|
|
|
|
|
unitholders of publicly-listed entities |
152,790 |
|
41,362 |
|
(310,577 |
) |
(194,152 |
) |
(310,577 |
) |
- Consolidation Adjustments column includes adjustments which
eliminate transactions between Teekay LNG, Teekay Tankers and
Teekay Parent.
- Teekay Corporation’s proportionate share of the net earnings of
its publicly-traded subsidiaries.
- 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 CorporationAppendix C - Supplemental Financial
InformationTeekay Parent Summary Operating ResultsFor the Three
Months Ended December 31, 2019(in thousands of U.S.
dollars)(unaudited)
|
|
|
|
Teekay |
|
|
|
|
Parent |
|
FPSOs |
Other(1) |
GPCO |
Total |
|
|
|
|
|
Revenues |
58,992 |
|
53,067 |
|
— |
|
112,059 |
|
|
|
|
|
|
Voyage expenses |
(9 |
) |
(7 |
) |
— |
|
(16 |
) |
Vessel operating expenses |
(38,489 |
) |
(44,146 |
) |
— |
|
(82,635 |
) |
Time-charter hire expense |
(9,582 |
) |
(5,121 |
) |
— |
|
(14,703 |
) |
Depreciation and
amortization |
(6,052 |
) |
(35 |
) |
— |
|
(6,087 |
) |
General and administrative
expenses |
(66 |
) |
— |
|
(3,129 |
) |
(3,195 |
) |
Write-down of vessels |
(2 |
) |
— |
|
— |
|
(2 |
) |
Restructuring charges |
— |
|
(1,897 |
) |
— |
|
(1,897 |
) |
Income (loss) from vessel operations |
4,792 |
|
1,861 |
|
(3,129 |
) |
3,524 |
|
|
|
|
|
|
Depreciation and
amortization |
6,052 |
|
35 |
|
— |
|
6,087 |
|
Amortization of in-process
revenue |
|
|
|
|
contracts and
other |
(1,483 |
) |
602 |
|
|
(881 |
) |
Write-down of vessels |
2 |
|
— |
|
— |
|
2 |
|
Daughter Entities distributions (2) |
— |
|
— |
|
5,090 |
|
5,090 |
|
Teekay Parent adjusted EBITDA |
9,363 |
|
2,498 |
|
1,961 |
|
13,822 |
|
- Includes the results of one chartered-in FSO unit owned by
Altera, and one chartered-in LNG unit owned by Teekay LNG that
completed on November 1, 2019, both of which are largely on a
flow-through basis with Teekay Parent earning a small margin.
- 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, 2019,
Teekay Parent received cash distributions of $5.1 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, |
|
|
2019 |
2019 |
2018 |
2019 |
2018 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
TEEKAY
PARENT GPCO |
|
|
|
|
|
Daughter
Entities distributions to Teekay
Parent(1) |
|
|
|
|
|
|
Limited Partner
interests (2) |
|
|
|
|
|
|
Teekay LNG |
4,790 |
|
4,790 |
|
3,529 |
|
19,160 |
|
14,116 |
|
|
Altera |
— |
|
— |
|
— |
|
— |
|
1,698 |
|
|
GP interests |
|
|
|
|
|
|
Teekay LNG |
300 |
|
300 |
|
227 |
|
1,209 |
|
911 |
|
|
Altera (3) |
— |
|
— |
|
— |
|
— |
|
47 |
|
Total Daughter
Entity Distributions to Teekay Parent |
5,090 |
|
5,090 |
|
3,756 |
|
20,369 |
|
16,772 |
|
Corporate general and administrative expenses |
(3,129 |
) |
(2,720 |
) |
(5,134 |
) |
(13,152 |
) |
(19,140 |
) |
Total
Teekay Parent GPCO |
1,961 |
|
2,370 |
|
(1,378 |
) |
7,217 |
|
(2,368 |
) |
|
|
|
|
|
|
|
TEEKAY
PARENT OPCO |
|
|
|
|
|
Teekay
Parent OPCO (4) |
|
|
|
|
|
|
FPSOs |
9,363 |
|
(13,087 |
) |
3,737 |
|
(6,935 |
) |
48,347 |
|
|
Other |
2,498 |
|
649 |
|
722 |
|
5,097 |
|
6,783 |
|
Total Teekay Parent OPCO (5) |
11,861 |
|
(12,438 |
) |
4,459 |
|
(1,838 |
) |
55,130 |
|
|
|
|
|
|
|
TEEKAY PARENT ADJUSTED
EBITDA |
13,822 |
|
(10,068 |
) |
3,081 |
|
5,379 |
|
52,762 |
|
|
|
|
|
|
|
Net interest
expense (6) |
(8,879 |
) |
(8,714 |
) |
(14,081 |
) |
(39,408 |
) |
(61,335 |
) |
|
|
|
|
|
|
|
TOTAL TEEKAY PARENT FREE CASH
FLOW |
4,943 |
|
(18,782 |
) |
(11,000 |
) |
(34,029 |
) |
(8,573 |
) |
|
|
|
|
|
|
Weighted-average number of
common shares - Basic |
100,784,425 |
100,784,683 |
100,435,155 |
100,719,224 |
99,670,176 |
- 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.
- 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 and equity-accounted
investment in Altera for the periods as follows:
|
|
Three Months Ended |
Year Ended |
|
|
December
31, |
September
30, |
December
31, |
December
31, |
December
31, |
|
|
2019 |
2019 |
2018 |
2019 |
2018 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
Teekay
LNG |
|
|
|
|
|
|
|
|
|
|
Distribution per common unit |
$ |
0.19 |
|
$ |
0.19 |
|
$ |
0.14 |
|
$ |
0.76 |
$ |
0.56 |
|
Common units owned by |
|
|
|
|
|
|
|
|
|
|
Teekay Parent |
|
25,208,274 |
|
|
25,208,274 |
|
|
25,208,274 |
|
|
25,208,274 |
|
|
25,208,274 |
|
Total distribution |
$ |
4,789,572 |
|
$ |
4,789,572 |
|
$ |
3,529,158 |
|
$ |
19,158,288 |
|
$ |
14,116,633 |
|
Altera |
|
|
|
|
|
|
|
|
|
|
Distribution per common unit |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
0.03 |
|
Common units owned by |
|
|
|
|
|
|
|
|
|
|
Teekay Parent |
|
— |
|
|
— |
|
|
56,587,484 |
|
|
— |
|
|
56,587,484 |
|
Total distribution |
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
1,697,625 |
|
- For the first three quarters of 2018, Altera paid a
quarterly distribution of $0.01 per common unit. Commencing with
the distribution for the fourth quarter of 2018, the board of
directors of Altera's general partner reduced the quarterly
distribution to zero. Teekay sold its remaining interests in Altera
to Brookfield in the second quarter of 2019.
- Please refer to Appendices C and E for additional financial
information on Teekay Parent’s adjusted EBITDA.
- Excludes corporate general and administrative expenses relating
to Teekay Parent GPCO.
- 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.
Teekay CorporationNon-GAAP Financial
Reconciliations
Teekay CorporationAppendix E - Reconciliation of Non-GAAP
Financial MeasuresAdjusted EBITDA - Consolidated(in thousands of
U.S. dollars)
|
|
Three Months Ended |
|
|
December 31, |
September 30, |
December 31, |
|
|
2019 |
2019 |
2018 |
|
(unaudited) |
(unaudited) |
(unaudited) |
Net income
(loss) |
122,497 |
|
(175,908 |
) |
(6,357 |
) |
Depreciation and
amortization |
71,083 |
|
73,633 |
|
71,069 |
|
Interest expense,
net of interest income |
66,079 |
|
66,222 |
|
69,982 |
|
Income
tax expense |
12,731 |
|
3,091 |
|
6,727 |
|
EBITDA |
272,390 |
|
(32,962 |
) |
141,421 |
|
Specific income statement items affecting EBITDA: |
|
|
|
|
Write-down and (gain) loss on sale of vessels |
(8,803 |
) |
175,785 |
|
— |
|
|
Direct finance lease payments received in excess of revenue
recognized |
10,310 |
|
4,071 |
|
2,475 |
|
|
Amortization of in-process contracts and other |
(881 |
) |
(880 |
) |
(2,609 |
) |
|
Realized and unrealized (gain) loss on derivative instruments |
(4,592 |
) |
1,924 |
|
32,833 |
|
|
Realized gains from the settlements of non-designated derivative
instruments |
1,097 |
|
435 |
|
— |
|
|
Equity income |
(31,900 |
) |
(21,514 |
) |
(19,356 |
) |
|
Foreign currency exchange loss (gain) |
10,721 |
|
(5,628 |
) |
5,764 |
|
|
Other expense (income) - net |
1,980 |
|
1,424 |
|
(782 |
) |
Consolidated Adjusted EBITDA |
250,322 |
|
122,655 |
|
159,746 |
|
Adjusted EBITDA from equity-accounted vessels (See Appendix E) |
73,923 |
|
70,225 |
|
86,929 |
|
Total Adjusted EBITDA |
324,245 |
|
192,880 |
|
246,675 |
|
Teekay CorporationAppendix E - Reconciliation of Non-GAAP
Financial MeasuresAdjusted EBITDA - Consolidated(in thousands of
U.S. dollars)
|
|
Year Ended |
|
|
December 31, |
December 31, |
|
|
2019 |
2018 |
|
(unaudited) |
(unaudited) |
Net loss |
(148,986 |
) |
(57,747 |
) |
Depreciation and
amortization |
290,672 |
|
276,307 |
|
Interest expense,
net of interest income |
271,255 |
|
245,601 |
|
Income
tax expense |
24,262 |
|
19,724 |
|
EBITDA |
437,203 |
|
483,885 |
|
Specific income statement items affecting EBITDA: |
|
|
|
Write-down and loss on sale of vessels |
170,310 |
|
53,693 |
|
|
Direct finance lease payments received in excess of revenue
recognized |
21,636 |
|
11,082 |
|
|
Amortization of in-process contracts and other |
(4,131 |
) |
(10,217 |
) |
|
Realized and unrealized loss on derivative instruments |
13,719 |
|
14,852 |
|
|
Realized gains from the settlements of non-designated derivative
instruments |
1,532 |
|
— |
|
|
Equity loss (income) |
14,523 |
|
(61,054 |
) |
|
Loss on deconsolidation of Altera |
— |
|
7,070 |
|
|
Foreign currency exchange loss (gain) |
13,574 |
|
(6,140 |
) |
|
Other expense - net |
14,475 |
|
2,013 |
|
Consolidated Adjusted EBITDA |
682,841 |
|
495,184 |
|
Adjusted EBITDA from equity-accounted vessels (See Appendix E) |
267,852 |
|
280,449 |
|
Total Adjusted EBITDA |
950,693 |
|
775,633 |
|
Teekay CorporationAppendix E - Reconciliation of Non-GAAP
Financial MeasuresAdjusted EBITDA – Equity-Accounted Vessels(in
thousands of U.S. dollars)
|
|
Three Months Ended |
|
|
December 31, 2019 |
September 30, 2019 |
December 31, 2018 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
|
|
At |
Company's |
At |
Company's |
At |
Company's |
|
|
100% |
Portion(1) |
100% |
Portion(1) |
100% |
Portion(1) |
Revenues |
223,716 |
|
100,267 |
|
207,749 |
|
91,490 |
|
601,685 |
|
136,738 |
|
Vessel and other
operating expenses |
(73,139 |
) |
(32,600 |
) |
(60,219 |
) |
(26,779 |
) |
(237,912 |
) |
(53,703 |
) |
Depreciation and
amortization |
(29,609 |
) |
(14,392 |
) |
(29,799 |
) |
(14,416 |
) |
(129,669 |
) |
(28,917 |
) |
Write-down and
gain on sale of |
|
|
|
|
|
|
|
vessels |
— |
|
— |
|
— |
|
— |
|
(26,292 |
) |
(3,697 |
) |
Income
from vessel operations of equity-accounted vessels |
120,968 |
|
53,275 |
|
117,731 |
|
50,295 |
|
207,812 |
|
50,421 |
|
|
|
|
|
|
|
|
Net interest
expense |
(62,291 |
) |
(25,821 |
) |
(57,031 |
) |
(23,423 |
) |
(103,802 |
) |
(28,380 |
) |
Income tax
expense |
(200 |
) |
(107 |
) |
(32 |
) |
(16 |
) |
(5,586 |
) |
(785 |
) |
Other items
including realized and |
|
|
|
|
|
|
|
unrealized loss on
derivative |
|
|
|
|
|
|
|
instruments |
12,823 |
|
4,553 |
|
(18,270 |
) |
(5,492 |
) |
(77,273 |
) |
(17,202 |
) |
Write-down and
gain on sale of |
|
|
|
|
|
|
|
equity-accounted investments (2) |
|
— |
|
|
150 |
|
|
15,302 |
|
Net income
/ equity income of equity-accounted vessels |
71,300 |
|
31,900 |
|
42,398 |
|
21,514 |
|
21,151 |
|
19,356 |
|
|
|
|
|
|
|
|
|
Net income
/ equity income |
|
|
|
|
|
|
|
of equity-accounted
vessels |
71,300 |
|
31,900 |
|
42,398 |
|
21,514 |
|
21,151 |
|
19,356 |
|
Depreciation and
amortization |
29,609 |
|
14,392 |
|
29,799 |
|
14,416 |
|
129,669 |
|
28,917 |
|
Net interest
expense |
62,291 |
|
25,821 |
|
57,031 |
|
23,423 |
|
103,802 |
|
28,380 |
|
Income
tax expense |
200 |
|
107 |
|
32 |
|
16 |
|
5,586 |
|
785 |
|
EBITDA |
163,400 |
|
72,220 |
|
129,260 |
|
59,369 |
|
260,208 |
|
77,438 |
|
Specific income
statement items affecting EBITDA: |
|
|
|
|
|
|
Write-down and gain on sale of
vessels |
— |
|
— |
|
— |
|
— |
|
26,292 |
|
3,697 |
|
|
Direct finance lease payments
received in excess of revenue recognized |
19,286 |
|
7,212 |
|
17,701 |
|
6,470 |
|
14,057 |
|
5,066 |
|
|
Amortization of in-process
contracts and other |
(1,758 |
) |
(956 |
) |
(1,758 |
) |
(956 |
) |
(1,804 |
) |
(965 |
) |
|
Other items including realized
and unrealized loss on derivative instruments |
(12,823 |
) |
(4,553 |
) |
18,270 |
|
5,492 |
|
77,273 |
|
17,202 |
|
|
Realized loss on foreign
currency forward contracts |
— |
|
— |
|
— |
|
— |
|
(1,470 |
) |
(207 |
) |
|
Write-down and (gain) on sale of equity-accounted
investments(2) |
|
— |
|
|
(150 |
) |
|
(15,302 |
) |
Adjusted EBITDA from equity-accounted
vessels(3)(4) |
168,105 |
|
73,923 |
|
163,473 |
|
70,225 |
|
374,556 |
|
86,929 |
|
- For the three months ended December 31, 2019 and September 30,
2019, the Company’s proportionate share of its equity-accounted
vessels and other investments, ranged from 20% to 52%. For the
three months ended December 31, 2018, the Company’s proportionate
share of its equity-accounted vessels and other investments, ranged
from 14% to 52%, and included $35.0 million related to the
Company's proportionate share of its investment in Altera, which
was sold in the second quarter of 2019.
- For the three months ended December 31, 2018, includes a gain
on the sale of Teekay's 43.5% stake in Magnora in November
2018.
- Adjusted EBITDA from equity-accounted vessels represents the
Company’s proportionate share of adjusted EBITDA from its
equity-accounted vessels and other investments.
- The Company sold its investment in Altera in May 2019 and
consequently did not include any share of Altera's adjusted EBITDA
for the three months ended December 31, 2019 and September 30,
2019. The three months ended December 31, 2018 include the
Company's proportionate share of the adjusted EBITDA from
Altera.
Teekay CorporationAppendix E - Reconciliation of Non-GAAP
Financial MeasuresAdjusted EBITDA – Equity-Accounted Vessels(in
thousands of U.S. dollars)
|
|
Year Ended |
|
|
December 31, 2019 |
December 31, 2018 |
|
|
(unaudited) |
(unaudited) |
|
|
At |
Company's |
At |
Company's |
|
|
100% |
Portion(1) |
100% |
Portion(1) |
Revenues |
1,100,576 |
|
385,529 |
|
2,008,308 |
|
470,534 |
|
Vessel and other
operating expenses |
(421,592 |
) |
(138,293 |
) |
(929,731 |
) |
(203,948 |
) |
Depreciation and
amortization |
(201,478 |
) |
(68,921 |
) |
(511,113 |
) |
(111,019 |
) |
Write-down and
loss on sale of |
|
|
|
|
|
vessels |
— |
|
— |
|
(114,348 |
) |
(16,277 |
) |
Income
from vessel operations of equity-accounted vessels |
477,506 |
|
178,315 |
|
453,116 |
|
139,290 |
|
|
|
|
|
|
Net interest
expense |
(278,572 |
) |
(99,567 |
) |
(361,313 |
) |
(98,731 |
) |
Income tax
expense |
(6,078 |
) |
(1,757 |
) |
(5,832 |
) |
(900 |
) |
Other items
including realized and unrealized loss |
|
|
|
|
|
on derivative instruments |
(85,088 |
) |
(18,911 |
) |
(6,445 |
) |
(181 |
) |
Write-down and
gain on sale of |
|
|
|
|
|
equity-accounted investments (2) |
|
(72,603 |
) |
|
21,576 |
|
Net income
/ equity (loss) income of equity-accounted vessels |
107,768 |
|
(14,523 |
) |
79,526 |
|
61,054 |
|
|
|
|
|
|
|
Net income
/ equity (loss) income |
|
|
|
|
|
of equity-accounted
vessels |
107,768 |
|
(14,523 |
) |
79,526 |
|
61,054 |
|
Depreciation and
amortization |
201,478 |
|
68,921 |
|
511,113 |
|
111,019 |
|
Net interest
expense |
278,572 |
|
99,567 |
|
361,313 |
|
98,731 |
|
Income
tax expense |
6,078 |
|
1,757 |
|
5,832 |
|
900 |
|
EBITDA |
593,896 |
|
155,722 |
|
957,784 |
|
271,704 |
|
Specific income
statement items affecting EBITDA: |
|
|
|
Write-down and
loss on sale of vessels |
— |
|
— |
|
114,348 |
|
16,277 |
|
Direct finance
lease payments received in excess of |
|
|
|
|
|
revenue recognized |
67,807 |
|
24,574 |
|
56,680 |
|
19,486 |
|
Amortization of
in-process contracts and other |
(6,974 |
) |
(3,793 |
) |
(26,779 |
) |
(5,424 |
) |
Other items
including realized and unrealized loss on |
|
|
|
|
|
derivative
instruments |
85,088 |
|
18,911 |
|
6,445 |
|
181 |
|
Realized loss on
foreign currency forward contracts |
(1,175 |
) |
(165 |
) |
(1,416 |
) |
(199 |
) |
Write-down and (gain) on sale of equity-accounted
investments(2) |
|
72,603 |
|
|
(21,576 |
) |
Adjusted EBITDA from equity-accounted
vessels(3)(4) |
738,642 |
|
267,852 |
|
1,107,062 |
|
280,449 |
|
- 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. For the
year ended December 31, 2018, the Company’s proportionate share of
its equity-accounted vessels and other investments, ranged from 14%
to 52%, and included $94.6 million related to the Company's
proportionate share of its investment in Altera, which was sold in
the second quarter of 2019.
- For the year ended December 31, 2019, includes a loss on sale
of the Company's investment in Altera. For the year ended December
31, 2018, includes a gain on the sale of Teekay's 43.5% stake in
Magnora in November 2018, a gain on the sale of a 2% ownership
interest in Altera's general partner to Brookfield in July 2018, a
loss on the sale of Teekay's investment in KT Maritime (Pty) Ltd.
and a gain on the sale of Teekay LNG's 50% ownership interest in
the Excelsior Joint Venture.
- Adjusted EBITDA from equity-accounted vessels represents the
Company’s proportionate share of adjusted EBITDA from its
equity-accounted vessels and other investments.
- 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. The year ended December 31,
2018 includes the Company's proportionate share of the adjusted
EBITDA from Altera.
Teekay CorporationAppendix E - Reconciliation of Non-GAAP
Financial MeasuresTotal Adjusted Revenues(in thousands of U.S.
dollars)
|
|
|
Three Months Ended |
Year Ended |
|
|
|
December 31, |
September 30, |
December 31, |
December 31, |
December 31, |
|
|
|
2019 |
2019 |
2018 |
2019 |
2018 |
|
|
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
Revenues |
562,865 |
|
420,696 |
|
491,532 |
|
1,922,441 |
|
1,707,758 |
|
Proportionate
share of revenues |
|
|
|
|
|
|
from
equity-accounted joint ventures |
100,267 |
|
91,490 |
|
136,738 |
|
385,529 |
|
470,534 |
|
Total adjusted revenues |
663,132 |
|
512,186 |
|
628,270 |
|
2,307,970 |
|
2,178,292 |
|
Teekay CorporationAppendix E - Reconciliation of Non-GAAP
Financial MeasuresAdjusted EBITDA - Teekay Parent(in thousands of
U.S. dollars)
|
|
Three Months
Ended September 30, 2019 |
|
|
(unaudited) |
|
|
|
|
|
|
Teekay |
|
|
|
|
|
|
Parent |
|
|
FPSOs |
Other |
GPCO |
Total |
|
|
|
|
|
|
|
|
|
Teekay Parent
(loss) income from vessel operations |
|
(194,415 |
) |
|
8 |
|
(2,720 |
) |
|
(197,127 |
) |
Write down of
vessels |
|
175,000 |
|
|
— |
|
— |
|
|
175,000 |
|
Depreciation and
amortization |
|
7,811 |
|
|
38 |
|
— |
|
|
7,849 |
|
Amortization of
in-process revenue contracts and other |
|
(1,483 |
) |
|
603 |
|
|
|
(880 |
) |
Daughter Entities distributions |
|
— |
|
|
— |
|
5,090 |
|
|
5,090 |
|
Adjusted EBITDA – Teekay Parent |
|
(13,087 |
) |
|
649 |
|
2,370 |
|
|
(10,068 |
) |
|
|
Three Months
Ended December 31, 2018 |
|
|
(unaudited) |
|
|
|
|
|
|
Teekay |
|
|
|
|
|
|
Parent |
|
|
FPSOs |
Other |
GPCO |
Total |
|
|
|
|
|
|
|
|
|
Teekay Parent loss
from vessel operations |
|
(2,370 |
) |
|
(845 |
) |
(5,134 |
) |
|
(8,349 |
) |
Depreciation and
amortization |
|
8,035 |
|
|
39 |
|
— |
|
|
8,074 |
|
Amortization of
in-process revenue contracts and other |
|
(1,928 |
) |
|
1,528 |
|
— |
|
|
(400 |
) |
Daughter Entities distributions |
|
— |
|
|
— |
|
3,756 |
|
|
3,756 |
|
Adjusted EBITDA – Teekay Parent |
|
3,737 |
|
|
722 |
|
(1,378 |
) |
|
3,081 |
|
Teekay CorporationAppendix E - Reconciliation of Non-GAAP
Financial MeasuresAdjusted EBITDA - Teekay Parent(in thousands of
U.S. dollars)
|
|
Year Ended
December 31, 2019 |
|
|
(unaudited) |
|
|
|
|
|
|
Teekay |
|
|
|
|
|
|
Parent |
|
|
FPSOs |
Other |
GPCO |
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 |
|
|
|
Year Ended
December 31, 2018 |
|
|
(unaudited) |
|
|
|
|
|
|
Teekay |
|
|
|
|
|
|
Parent |
|
|
FPSOs |
Other |
GPCO |
Total |
|
|
|
|
|
|
|
|
|
Teekay Parent
income (loss) from vessel operations |
|
22,958 |
|
|
4,698 |
|
(19,140 |
) |
|
8,516 |
|
Depreciation and
amortization |
|
33,254 |
|
|
161 |
|
— |
|
|
33,415 |
|
Amortization of
in-process revenue contracts and other |
|
(7,865 |
) |
|
1,924 |
|
— |
|
|
(5,941 |
) |
Daughter Entities distributions |
|
— |
|
|
— |
|
16,772 |
|
|
16,772 |
|
Adjusted EBITDA – Teekay Parent |
|
48,347 |
|
|
6,783 |
|
(2,368 |
) |
|
52,762 |
|
Teekay CorporationAppendix E - Reconciliation of Non-GAAP
Financial MeasuresNet 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, |
|
|
|
2019 |
2019 |
2018 |
2019 |
|
2018 |
|
|
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
Interest
expense |
(67,476 |
) |
(67,707 |
) |
(72,632 |
) |
(279,059 |
) |
(254,126 |
) |
Interest income |
1,397 |
|
1,485 |
|
2,650 |
|
7,804 |
|
8,525 |
|
Interest expense
net of interest income consolidated |
(66,079 |
) |
(66,222 |
) |
(69,982 |
) |
(271,255 |
) |
(245,601 |
) |
Less: Non-Teekay
Parent interest expense net of interest income |
(55,322 |
) |
(55,545 |
) |
(55,223 |
) |
(225,027 |
) |
(182,277 |
) |
Interest expense
net of interest income - Teekay Parent |
(10,757 |
) |
(10,677 |
) |
(14,759 |
) |
(46,228 |
) |
(63,324 |
) |
Teekay Parent
non-cash accretion and loan cost amortization |
2,161 |
|
2,204 |
|
969 |
|
7,823 |
|
3,550 |
|
Teekay
Parent realized losses on interest rate swaps |
(283 |
) |
(241 |
) |
(291 |
) |
(1,003 |
) |
(1,561 |
) |
Net interest expense - Teekay Parent |
(8,879 |
) |
(8,714 |
) |
(14,081 |
) |
(39,408 |
) |
(61,335 |
) |
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: Teekay LNG’s intention
to increase its quarterly cash distributions on its common units by
32 percent in 2020; expected stronger earnings, cash flows, and
balance sheet strength in 2020 for the Teekay Group; Teekay LNG’s
ability to be insulated from the near-term weakness in the spot LNG
shipping market or international LNG markets; expected increase in
Teekay Tankers' earnings and cash flows in 2020; tanker supply and
demand fundamentals in 2020; the impact of the coronavirus outbreak
on LNG, oil and tanker supply and demand; agreed asset sales by
Teekay Tankers and the anticipated timing of closings of such
transactions; and the Company's strategic priorities. 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; issues with vessel operations;
increased operating expenses; changes in applicable industry laws
and regulations and the timing of implementation of new laws and
regulations; the effects of IMO 2020; the potential for early
termination of long-term contracts of existing vessels; delays in
the commencement of charter or other contracts, including potential
further delays to the commencement of commercial operations of the
Bahrain Regasification Terminal; the ability to fund debt
maturities; changes in borrowing costs or equity valuations;
declaration by Teekay LNG’s board of directors of increased common
unit distributions; available cash to reduce financial leverage at
Teekay LNG and Teekay Tankers; the impact of geopolitical tensions
and changes in global economic conditions; the duration and extent
of the coronavirus outbreak; 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,
2018. 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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