HOUSTON, July 23, 2015 /PRNewswire/ -- Hercules
Offshore, Inc. (Nasdaq: HERO) today reported a net loss of
$88.3 million, or $0.55 per diluted share, on revenue of
$79.2 million for the second quarter
2015, compared to net income of $6.6
million, or $0.04 per diluted
share, on revenue of $243.0 million
for the second quarter 2014. As outlined in the Reconciliation of
GAAP to Non-GAAP Financial Measures, second quarter 2015 results
include a pre-tax adjustment of $13.4
million related to retroactive dayrate concessions on the
Hercules 261, 262 and 266, $10.6 million of costs related to financing and
restructuring activities, a $3.6
million net loss related to asset sales, including the sale
of six cold stacked jackups and a $1.9
million charge related to the termination of our Credit
Facility. These items resulted in a second quarter after-tax
adjustment of $28.8 million, or
$0.18 per diluted share. Second
quarter 2014 results included an after-tax gain of $17.9 million related to the sale of three cold
stacked jackups as well as a $4.8
million charge related to the early retirement of debt and
issuance costs for a total net adjustment of $13.1 million, or $0.08 per diluted share.
John T. Rynd, Chief Executive Officer and President of Hercules
Offshore stated, "Second quarter results reflect the weak operating
conditions across the offshore services sector as well the impact
of our resolution with Saudi Aramco for our three rigs in the
Middle East. The latest pullback
in the price of oil is likely to delay any improvement in worldwide
activity levels well into 2016. The limited visibility and
challenging market conditions that we expect to persist for some
time drove our decision to restructure our capital base. As
previously disclosed, we have reached an agreement with the
majority of our noteholders, and anticipate obtaining final
approval of our restructuring plan in late October. We also
continue to aggressively reduce costs without compromising the
safety of our employees or the quality of our services. By
controlling costs and establishing a stronger balance sheet, we
will be better positioned to weather this protracted downturn and
possibly capitalize on opportunities that may arise in such
industry conditions."
Domestic Offshore
Revenue generated from Domestic Offshore for the second quarter
2015 decreased 71% to $40.6 million
from $140.4 million in the second
quarter 2014, driven by lower utilization and dayrates on a reduced
marketed rig fleet. Operating days during the second quarter 2015
declined to 439 days with utilization of 53.6% on a marketed fleet
of 9 rigs, compared to 1,297 days on 18 marketed rigs at 79.2%
utilization during the second quarter 2014. Average revenue per rig
per day decreased to $92,538 in the
second quarter 2015 from $108,237 in
the comparable 2014 period. Operating expenses of $26.4 million in the second quarter 2015 include
a net loss of $3.4 million related to
asset sales, including the Hercules 85, 153,
203, 206, 207 and 211, compared to
expenses of $63.5 million in the
second quarter 2014, which includes a gain of $7.4 million from the sale of the Hercules
250 and 2002. The significant reduction in operating
expenses in the current quarter, after adjusting for asset sales,
was largely attributable to the reduced number of fully crewed rigs
in operation. Domestic Offshore reported operating income of
$1.4 million in the second quarter
2015, compared to $57.3 million in
the second quarter 2014, including the aforementioned asset sale
gains and losses.
International Offshore
International Offshore revenue of $17.5
million in the second quarter 2015 includes a $13.4 million adjustment related to retroactive
dayrate concessions on the Hercules 261, 262 and
266 made on their existing contracts with Saudi Aramco, and
compares to revenue of $71.7 million
in the second quarter 2014. Utilization decreased to 50.0% in the
second quarter 2015 from 62.5% in the second quarter 2014, largely
due to idle time on the Hercules Triumph, Hercules
Resilience and Hercules 208, partially offset by higher
utilization on the Hercules 261 and Hercules 260.
Average revenue per rig per day decreased to $47,975 in the second quarter 2015 from
$157,637 in the second quarter of
2014, driven largely by idle time on the Hercules Resilience
and Hercules Triumph, lower renegotiated dayrates on the
three rigs working for Saudi Aramco, as well as the retroactive
dayrate adjustments on these three rigs. Operating expense
decreased to $35.5 million in the
second quarter 2015, from $44.1
million in the respective 2014 period, which includes a
$10.5 million gain on the sale of
Hercules 258. This reduction in operating expense was driven
in part by lower costs on the Hercules 261 and 262 as
well as lower costs incurred on the idle rigs. International
Offshore recorded an operating loss of $40.5
million in the second quarter 2015 compared to operating
income of $6.7 million in the prior
year period, including the aforementioned rig sale gain.
International Liftboats
International Liftboats revenue declined to $21.2 million in the second quarter 2015 from
$30.9 million in the prior year
period, due to lower utilization and dayrates. Second quarter 2015
utilization declined to 49.7% from 61.0% in the respective 2014
period. Average revenue per liftboat per day decreased 16% to
$20,329 in the second quarter 2015
from $24,162 in the second quarter
2014, primarily due to market pressure on dayrates. Operating
expenses in the second quarter 2015 declined by 21% to $15.0 million, compared to $19.1 million in the second quarter 2014,
reflecting lower activity levels and the impact of our cost
reduction measures. International Liftboats recorded operating
income of $0.8 million in the second
quarter 2015 compared to an operating loss of $0.7 million in the second quarter 2014, which
includes approximately $5.3 million
of bad debt expense.
Non-GAAP
Certain non-GAAP performance measures and corresponding
reconciliations to GAAP financial measures for the Company have
been provided for meaningful comparisons between current results
and prior operating periods. Generally, a non-GAAP financial
measure is a numerical measure of a company's performance,
financial position, or cash flows that excludes or includes amounts
that are not normally excluded or included in the most directly
comparable measure calculated and presented in accordance with
generally accepted accounting principles. In order to fully assess
the financial operating results, management believes that the
adjusted net income figures included in this release are
appropriate measures of the continuing and normal operations of the
Company. However, these measures should be considered in addition
to, and not as a substitute for, or superior to, revenue, net
income, operating income, cash flows from operations, or other
measures of financial performance prepared in accordance with GAAP.
The non-GAAP measures included in this press release have been
reconciled to the nearest GAAP measure in the table that follows
the financial statements. Please see the attached Reconciliation of
GAAP to Non-GAAP Financial Measures for a complete description of
the adjustments made to Revenue, Operating Income, Net Income and
Diluted Income per Share.
Conference Call Information
Hercules Offshore will conduct a conference call at 10:00 a.m. CDT (11:00 a.m.
EDT) on July 23, 2015, to
discuss its second quarter 2015 financial results. To participate
in the call, dial +1 (855) 865-4806 (Domestic) or +1 (262) 912-6154
(International) and reference access code 80887652 approximately 10
minutes prior to the start of the call. The conference call will
also be broadcast live via the Internet at
http://www.herculesoffshore.com.
A replay of the conference call will be available by telephone
on July 23, 2015, beginning at
1:00 p.m. CDT (2:00 p.m. EDT), through July 30, 2015. The phone number for the
conference call replay is +1 (855) 859-2056 (Domestic) or +1 (404)
537-3406 (International). The access code is 80887652.
Additionally, the recorded conference call will be accessible
through our website at http://www.herculesoffshore.com for 7 days
after the conference call.
About Hercules Offshore, Inc.
Headquartered in Houston,
Hercules Offshore, Inc. operates a fleet of 27 jackup rigs,
including one rig under construction, and 24 liftboats. The Company
offers a range of services to oil and gas producers to meet their
needs during drilling, well service, platform inspection,
maintenance, and decommissioning operations in several key shallow
water provinces around the world. For more information, please
visit our website at http://www.herculesoffshore.com.
The news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Such statements are
subject to a number of risks, uncertainties and assumptions,
including the factors described in Hercules Offshore's most recent
periodic reports and other documents filed with the Securities and
Exchange Commission, which are available free of charge at the
SEC's website at http://www.sec.gov or the Company's website
at http://www.herculesoffshore.com. Hercules Offshore cautions you
that forward-looking statements are not guarantees of future
performance and that actual results or developments may differ
materially from those projected or implied in these statements.
HERCULES OFFSHORE,
INC. AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
|
2015
|
|
2014
|
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and Cash
Equivalents
|
$
|
143,373
|
|
$
|
207,937
|
|
|
Accounts Receivable,
Net
|
94,176
|
|
166,359
|
|
|
Prepaids
|
21,528
|
|
19,585
|
|
|
Current Deferred Tax
Asset
|
4,009
|
|
4,461
|
|
|
Other
|
3,427
|
|
5,955
|
|
|
|
266,513
|
|
404,297
|
|
|
|
|
|
|
|
Property and
Equipment, Net
|
1,555,954
|
|
1,574,749
|
|
Other Assets,
Net
|
21,157
|
|
23,361
|
|
|
|
|
|
|
|
|
|
$
|
1,843,624
|
|
$
|
2,002,407
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Current Portion of
Long-term Debt
|
$
|
1,211,044
|
|
$
|
-
|
|
|
Accounts
Payable
|
45,283
|
|
52,952
|
|
|
Accrued
Liabilities
|
53,987
|
|
66,090
|
|
|
Interest
Payable
|
32,005
|
|
32,008
|
|
|
Other Current
Liabilities
|
10,704
|
|
13,406
|
|
|
|
1,353,023
|
|
164,456
|
|
|
|
|
|
|
|
Long-term
Debt
|
-
|
|
1,210,919
|
|
Deferred Income
Taxes
|
3,947
|
|
4,147
|
|
Other
Liabilities
|
14,752
|
|
7,854
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
471,902
|
|
615,031
|
|
|
|
|
|
|
|
|
|
$
|
1,843,624
|
|
$
|
2,002,407
|
HERCULES OFFSHORE,
INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
79,249
|
|
$
|
242,963
|
|
$
|
201,868
|
|
$
|
499,697
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses:
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
76,991
|
|
126,725
|
|
176,590
|
|
267,477
|
|
Depreciation and
Amortization
|
37,451
|
|
43,670
|
|
74,669
|
|
83,753
|
|
General and
Administrative
|
24,990
|
|
22,519
|
|
40,750
|
|
40,746
|
|
|
139,432
|
|
192,914
|
|
292,009
|
|
391,976
|
|
|
|
|
|
|
|
|
|
Operating Income
(Loss)
|
(60,183)
|
|
50,049
|
|
(90,141)
|
|
107,721
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense):
|
|
|
|
|
|
|
|
|
Interest
Expense
|
(24,737)
|
|
(26,069)
|
|
(49,697)
|
|
(48,970)
|
|
Loss on
Extinguishment of Debt
|
(1,884)
|
|
(4,767)
|
|
(1,884)
|
|
(19,925)
|
|
Other, Net
|
(200)
|
|
214
|
|
220
|
|
364
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before
Income Taxes
|
(87,004)
|
|
19,427
|
|
(141,502)
|
|
39,190
|
Income Tax
Provision
|
(1,246)
|
|
(12,781)
|
|
(3,863)
|
|
(12,628)
|
Net Income
(Loss)
|
$
|
(88,250)
|
|
$
|
6,646
|
|
$
|
(145,365)
|
|
$
|
26,562
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Per
Share:
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.55)
|
|
$
|
0.04
|
|
$
|
(0.90)
|
|
$
|
0.17
|
|
Diluted
|
$
|
(0.55)
|
|
$
|
0.04
|
|
$
|
(0.90)
|
|
$
|
0.16
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
161,523
|
|
160,713
|
|
161,290
|
|
160,392
|
|
Diluted
|
161,523
|
|
161,795
|
|
161,290
|
|
161,839
|
HERCULES OFFSHORE,
INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2015
|
|
2014
|
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
Net Income
(Loss)
|
$
|
(145,365)
|
|
$
|
26,562
|
|
Adjustments to
Reconcile Net Income (Loss) to Net Cash Provided by (Used in)
Operating Activities:
|
|
|
|
|
Depreciation and
Amortization
|
74,669
|
|
83,753
|
|
Stock-Based
Compensation Expense
|
2,412
|
|
4,771
|
|
Deferred Income
Taxes
|
(396)
|
|
(5,213)
|
|
Provision (Benefit)
for Doubtful Accounts Receivable
|
(431)
|
|
5,088
|
|
(Gain) Loss on
Disposal of Assets, Net
|
3,083
|
|
(17,003)
|
|
Other
|
2,105
|
|
4,220
|
|
Net Change in
Operating Assets and Liabilities
|
54,582
|
|
(37,208)
|
|
Net Cash Provided by
(Used in) Operating Activities
|
(9,341)
|
|
64,970
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
Capital
Expenditures
|
(65,927)
|
|
(100,448)
|
|
Insurance Proceeds
Received
|
3,543
|
|
9,067
|
|
Proceeds from Sale of
Assets, Net
|
7,161
|
|
23,717
|
|
Net Cash Used in
Investing Activities
|
(55,223)
|
|
(67,664)
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
Long-term Debt
Borrowings
|
-
|
|
300,000
|
|
Redemption of 7.125%
Senior Secured Notes
|
-
|
|
(300,000)
|
|
Payment of Debt
Issuance Costs
|
-
|
|
(3,914)
|
|
Other
|
-
|
|
107
|
|
Net Cash Used in
Financing Activities
|
-
|
|
(3,807)
|
|
|
|
|
|
Net Decrease in Cash
and Cash Equivalents
|
(64,564)
|
|
(6,501)
|
Cash and Cash
Equivalents at Beginning of Period
|
207,937
|
|
198,406
|
Cash and Cash
Equivalents at End of Period
|
$
|
143,373
|
|
$
|
191,905
|
HERCULES OFFSHORE,
INC. AND SUBSIDIARIES
|
SELECTED FINANCIAL
AND OPERATING DATA
|
(Dollars in
thousands, except per day amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Domestic
Offshore:
|
|
|
|
|
|
|
|
|
Number of rigs (as of
end of period)
|
18
|
|
26
|
|
18
|
|
26
|
|
Revenue
|
$
|
40,624
|
|
$
|
140,383
|
|
$
|
93,499
|
|
$
|
283,648
|
|
Operating
expenses
|
26,441
|
|
63,538
|
|
62,407
|
|
136,338
|
|
Depreciation and
amortization expense
|
11,665
|
|
17,978
|
|
23,358
|
|
35,349
|
|
General and
administrative expenses
|
1,134
|
|
1,584
|
|
2,520
|
|
3,132
|
|
Operating
income
|
$
|
1,384
|
|
$
|
57,283
|
|
$
|
5,214
|
|
$
|
108,829
|
|
|
|
|
|
|
|
|
|
International
Offshore:
|
|
|
|
|
|
|
|
|
Number of rigs (as of
end of period)
|
9
|
|
10
|
|
9
|
|
10
|
|
Revenue
|
$
|
17,463
|
|
$
|
71,725
|
|
$
|
69,111
|
|
$
|
152,663
|
|
Operating
expenses
|
35,511
|
|
44,061
|
|
85,678
|
|
91,599
|
|
Depreciation and
amortization expense
|
20,959
|
|
19,075
|
|
41,298
|
|
35,701
|
|
General and
administrative expenses
|
1,469
|
|
1,864
|
|
3,463
|
|
3,996
|
|
Operating income
(loss)
|
$
|
(40,476)
|
|
$
|
6,725
|
|
$
|
(61,328)
|
|
$
|
21,367
|
|
|
|
|
|
|
|
|
|
International
Liftboats:
|
|
|
|
|
|
|
|
|
Number of liftboats
(as of end of period)
|
24
|
|
24
|
|
24
|
|
24
|
|
Revenue
|
$
|
21,162
|
|
$
|
30,855
|
|
$
|
39,258
|
|
$
|
63,386
|
|
Operating
expenses
|
15,039
|
|
19,126
|
|
28,505
|
|
39,540
|
|
Depreciation and
amortization expense
|
4,166
|
|
5,616
|
|
8,598
|
|
10,742
|
|
General and
administrative expenses
|
1,140
|
|
6,826
|
|
1,689
|
|
8,253
|
|
Operating income
(loss)
|
$
|
817
|
|
$
|
(713)
|
|
$
|
466
|
|
$
|
4,851
|
|
|
|
|
|
|
|
|
|
Total
Company:
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
79,249
|
|
$
|
242,963
|
|
$
|
201,868
|
|
$
|
499,697
|
|
Operating
expenses
|
76,991
|
|
126,725
|
|
176,590
|
|
267,477
|
|
Depreciation and
amortization expense
|
37,451
|
|
43,670
|
|
74,669
|
|
83,753
|
|
General and
administrative expenses
|
24,990
|
|
22,519
|
|
40,750
|
|
40,746
|
|
Operating income
(loss)
|
(60,183)
|
|
50,049
|
|
(90,141)
|
|
107,721
|
|
Interest expense
|
(24,737)
|
|
(26,069)
|
|
(49,697)
|
|
(48,970)
|
|
Loss on extinguishment of
debt
|
(1,884)
|
|
(4,767)
|
|
(1,884)
|
|
(19,925)
|
|
Other, net
|
(200)
|
|
214
|
|
220
|
|
364
|
|
Income (loss) before
income taxes
|
(87,004)
|
|
19,427
|
|
(141,502)
|
|
39,190
|
|
Income tax
provision
|
(1,246)
|
|
(12,781)
|
|
(3,863)
|
|
(12,628)
|
|
Net income
(loss)
|
$
|
(88,250)
|
|
$
|
6,646
|
|
$
|
(145,365)
|
|
$
|
26,562
|
HERCULES OFFSHORE,
INC. AND SUBSIDIARIES
|
SELECTED FINANCIAL
AND OPERATING DATA - (Continued)
|
(Dollars in
thousands, except per day amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2015
|
|
|
Operating
Days
|
|
Available
Days
|
|
Utilization
(1)
|
|
Average
Revenue per
Day (2)
|
|
Average
Operating
Expense per
Day (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
Offshore
|
439
|
|
819
|
|
53.6%
|
|
$
|
92,538
|
|
$
|
32,284
|
|
International
Offshore
|
364
|
|
728
|
|
50.0%
|
|
47,975
|
|
48,779
|
|
International
Liftboats
|
1,041
|
|
2,093
|
|
49.7%
|
|
20,329
|
|
7,185
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2014
|
|
|
Operating
Days
|
|
Available
Days
|
|
Utilization
(1)
|
|
Average
Revenue per
Day (2)
|
|
Average
Operating
Expense per
Day (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
Offshore
|
1,297
|
|
1,638
|
|
79.2%
|
|
$
|
108,237
|
|
$
|
38,790
|
|
International
Offshore
|
455
|
|
728
|
|
62.5%
|
|
157,637
|
|
60,523
|
|
International
Liftboats
|
1,277
|
|
2,093
|
|
61.0%
|
|
24,162
|
|
9,138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2015
|
|
|
Operating
Days
|
|
Available
Days
|
|
Utilization
(1)
|
|
Average
Revenue per
Day (2)
|
|
Average
Operating
Expense per
Day (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
Offshore
|
972
|
|
1,706
|
|
57.0%
|
|
$
|
96,192
|
|
$
|
36,581
|
|
International
Offshore
|
709
|
|
1,448
|
|
49.0%
|
|
97,477
|
|
59,170
|
|
International
Liftboats
|
1,829
|
|
4,163
|
|
43.9%
|
|
21,464
|
|
6,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2014
|
|
|
Operating
Days
|
|
Available
Days
|
|
Utilization
(1)
|
|
Average
Revenue per
Day (2)
|
|
Average
Operating
Expense per
Day (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
Offshore
|
2,641
|
|
3,258
|
|
81.1%
|
|
$
|
107,402
|
|
$
|
41,847
|
|
International
Offshore
|
1,050
|
|
1,403
|
|
74.8%
|
|
145,393
|
|
65,288
|
|
International
Liftboats
|
2,476
|
|
4,163
|
|
59.5%
|
|
25,600
|
|
9,498
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Utilization is
defined as the total number of days our rigs or liftboats, as
applicable, were under contract, known as operating days, in the
period as a percentage of the total number of available days in the
period. Days during which our rigs and liftboats were
undergoing major refurbishments, upgrades or construction, and days
during which our rigs and liftboats are cold stacked, are not
counted as available days. Days during which our liftboats are in
the shipyard undergoing drydocking or inspection are considered
available days for the purposes of calculating
utilization.
|
(2)
|
Average revenue per
rig or liftboat per day is defined as revenue earned by our rigs or
liftboats, as applicable, in the period divided by the total number
of operating days for our rigs or liftboats, as applicable, in the
period.
|
(3)
|
Average operating
expense per rig or liftboat per day is defined as operating
expenses, excluding depreciation and amortization, incurred by our
rigs or liftboats, as applicable, in the period divided by the
total number of available days in the period. We use
available days to calculate average operating expense per rig or
liftboat per day rather than operating days, which are used to
calculate average revenue per rig or liftboat per day, because we
incur operating expenses on our rigs and liftboats even when they
are not under contract and earning a dayrate.
|
Hercules Offshore,
Inc. and Subsidiaries
|
Reconciliation of GAAP to Non-GAAP Financial
Measures
|
(Unaudited)
|
(In thousands,
except per share data)
|
|
|
We report our
financial results in accordance with generally accepted accounting
principles (GAAP). However, management believes that certain
non-GAAP performance measures and ratios
may provide users of this financial information additional
meaningful comparisons between current results and results in prior operating periods.
Non-GAAP financial measures we may present from time to time are
revenue, operating income, income from continuing operations, net income or diluted earnings
per share excluding certain charges or amounts. These adjusted
amounts are not a measure of
financial performance under GAAP. Accordingly, they should not be
considered as a substitute for revenue, operating income, income
from continuing operations,
net income, earnings per share or other income data prepared in
accordance with GAAP. See the table below for supplemental financial data and corresponding
reconciliations to GAAP financial measures for the three and six
months ended June 30, 2015 and 2014. Non-GAAP financial measures should be viewed in
addition to, and not as an alternative for, the Company's reported
results prepared in accordance with GAAP. The non-GAAP measures included in this
press release have been reconciled to the nearest GAAP measure in
the following table:
|
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Revenue:
|
|
|
|
|
|
|
|
|
GAAP
Revenue
|
$
|
79,249
|
|
$
|
242,963
|
|
$
|
201,868
|
|
$
|
499,697
|
|
Adjustment
|
13,427
|
(a)
|
-
|
|
-
|
|
-
|
|
Non-GAAP
Revenue
|
$
|
92,676
|
|
$
|
242,963
|
|
$
|
201,868
|
|
$
|
499,697
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss):
|
|
|
|
|
|
|
|
|
GAAP Operating Income
(Loss)
|
$
|
(60,183)
|
|
$
|
50,049
|
|
$
|
(90,141)
|
|
$
|
107,721
|
|
Adjustment
|
27,570
|
(b)
|
(17,879)
|
(d)
|
14,143
|
(f)
|
(17,879)
|
(d)
|
Non-GAAP Operating
Income (Loss)
|
$
|
(32,613)
|
|
$
|
32,170
|
|
$
|
(75,998)
|
|
$
|
89,842
|
|
|
|
|
|
|
|
|
|
|
Other Expense:
|
|
|
|
|
|
|
|
|
GAAP Other
Expense
|
$
|
(26,821)
|
|
$
|
(30,622)
|
|
$
|
(51,361)
|
|
$
|
(68,531)
|
|
Adjustment
|
1,884
|
(c)
|
4,767
|
(e)
|
1,884
|
(c)
|
19,925
|
(g)
|
Non-GAAP Other
Expense
|
$
|
(24,937)
|
|
$
|
(25,855)
|
|
$
|
(49,477)
|
|
$
|
(48,606)
|
|
|
|
|
|
|
|
|
|
|
Provision for Income Taxes:
|
|
|
|
|
|
|
|
|
GAAP Provision for
Income Taxes
|
$
|
(1,246)
|
|
$
|
(12,781)
|
|
$
|
(3,863)
|
|
$
|
(12,628)
|
|
Tax
Adjustment
|
(671)
|
|
-
|
|
-
|
|
-
|
|
Non-GAAP Provision for
Income Taxes
|
$
|
(1,917)
|
|
$
|
(12,781)
|
|
$
|
(3,863)
|
|
$
|
(12,628)
|
|
|
|
|
|
|
|
|
|
|
Net
Income (Loss):
|
|
|
|
|
|
|
|
|
GAAP Net Income
(Loss)
|
$
|
(88,250)
|
|
$
|
6,646
|
|
$
|
(145,365)
|
|
$
|
26,562
|
|
Total
Adjustment
|
28,783
|
|
(13,112)
|
|
16,027
|
|
2,046
|
|
Non-GAAP Net Income
(Loss)
|
$
|
(59,467)
|
|
$
|
(6,466)
|
|
$
|
(129,338)
|
|
$
|
28,608
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings (Loss) per Share:
|
|
|
|
|
|
|
|
|
GAAP Diluted Earnings
(Loss) per Share
|
$
|
(0.55)
|
|
$
|
0.04
|
|
$
|
(0.90)
|
|
$
|
0.16
|
|
Adjustment per
Share
|
0.18
|
|
(0.08)
|
|
0.10
|
|
0.02
|
|
Non-GAAP Diluted
Earnings (Loss) per Share
|
$
|
(0.37)
|
|
$
|
(0.04)
|
|
$
|
(0.80)
|
|
$
|
0.18
|
|
|
(a) This amount
represents $13.4 million related to the retroactive dayrate
concessions on the Hercules 261, Hercules 262 and
Hercules 266 made from their existing contracts with Saudi
Aramco. On an after-tax basis, this adjustment approximated $12.8
million.
|
|
(b) This amount
represents $10.6 million of costs related to financing and
restructuring activities and a $3.6 million net loss on the sale of
assets, including six cold stacked drilling rigs. Additionally,
this amount includes a $13.4 million revenue adjustment related to
the retroactive dayrate concessions on the Hercules 261,
Hercules 262 and Hercules 266 made from their existing
contracts with Saudi Aramco, which on an after-tax basis, this
adjustment approximated $12.8 million.
|
|
(c) This amount
represents a charge of $1.9 million related to the termination of
the Credit Facility.
|
|
(d) This amount
represents a $17.9 million gain on the sale of three cold stacked
drilling rigs.
|
|
(e) This amount
represents a charge of $4.8 million related to retirement of the
remaining portion of our 7.125% senior secured notes in April
2014.
|
|
(f) This amount
represents $10.6 million of costs related to financing and
restructuring activities and a $3.6 million net loss on the sale of
assets, including six cold stacked drilling rigs.
|
|
(g) This amount
represents a charge of $19.9 million related to retirement of our
7.125% senior secured notes and issuance of our 6.75% senior
notes.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/hercules-offshore-inc-announces-second-quarter-2015-results-300117521.html
SOURCE Hercules Offshore, Inc.