HOUSTON, May 5, 2016 /PRNewswire/ -- Hercules
Offshore, Inc. (Nasdaq: HERO) today reported a net loss of
$26.9 million, or $1.35 per diluted share, on revenue of
$50.9 million for the first quarter
2016, compared to Predecessor net loss of $57.1 million, or $0.35 per diluted share, on revenue of
$122.6 million for the first quarter
2015. Diluted weighted average shares outstanding for the Successor
was 20.0 million shares for the first quarter 2016, while the
Predecessor's was 161.1 million shares for the first quarter
2015.
Upon emergence from Chapter 11 bankruptcy on November 6, 2015, Hercules adopted fresh start
accounting, which resulted in the Company becoming a new entity for
financial reporting purposes. References to "Predecessor" refer to
the financial position of Hercules as of and prior to November 6, 2015 and the results of operations
through November 6, 2015. References
to "Successor" relate to the financial position of the reorganized
Hercules as of and subsequent to November 6,
2015 and the results of operations and statement of cash
flows for the corresponding periods presented, which were
subsequent to November 6, 2015. As a
result of the application of fresh start accounting and the effects
of the implementation of the Plan of Reorganization, the financial
statements on or after November 6,
2015 are not comparable with the financial statements prior
to that date.
John T. Rynd, Chief Executive Officer and President of Hercules
Offshore stated, "First quarter results reflect continued weakness
in the operating conditions across our drilling and liftboat
markets. The rebound in oil prices over the past few months, while
encouraging, have yet to translate to a material improvement in
business prospects, as customers remain extremely cautious.
Further cost reduction measures have been implemented in response
to the weak environment.
"As previously disclosed, the Company has entered into a
Forbearance Agreement with certain of our lenders. During the
forbearance period, the Company and our advisors have been actively
working with various parties to negotiate an agreement with respect
to a potential recapitalization, business combination or other
alternative strategic transaction, including a potential
divestiture of the Hercules Highlander and restructuring of
the Company's term loan."
Domestic Offshore
Revenue generated from Domestic Offshore by the Successor for
the first quarter 2016 was $12.4
million, while Predecessor first quarter 2015 revenue was
$52.9 million. The 77% decrease in
revenue was driven largely by lower dayrates and utilization on a
reduced rig fleet. Operating expense reported by the Successor for
the first quarter 2016 was $11.7
million, while Predecessor first quarter 2015 operating
expense was $36.0 million. The 68%
decline in operating expense is largely attributable to a reduction
in the number of marketed rigs in operation. Domestic Offshore
reported an operating loss of $2.0
million by the Successor for the first quarter 2016, while
the Predecessor reported operating income of $3.8 million for the first quarter 2015.
International Offshore
Revenue generated from International Offshore by the Successor
for the first quarter 2016 was $27.5
million, while Predecessor first quarter 2015 revenue was
$51.6 million. The 47% decrease in
revenue was primarily due to lower contracted dayrates for the rigs
working for Saudi Aramco and idle time on the Hercules 208
and Hercules 267, partially offset by full utilization on
the Hercules 260. Operating expense reported by the
Successor for the first quarter 2016 was $23.4 million, while Predecessor first quarter
2015 operating expense was $50.2
million. The 53% decline in operating expense was primarily
driven by cost reduction measures on the idle rigs as well as
higher first quarter 2015 expense related to the demobilization
cost of the Hercules 208 and contract preparation costs on
the Hercules 260. International Offshore reported an
operating loss of $0.2 million by the
Successor for the first quarter 2016, while the Predecessor
reported an operating loss of $20.9 million for the first quarter
2015.
International Liftboats
Revenue generated from International Liftboats by the Successor
for the first quarter 2016 was $11.0
million, while Predecessor first quarter 2015 revenue was
$18.1 million. The 39% decrease in
revenue was driven primarily by lower dayrates and operating days.
Operating expense reported by the Successor for the first quarter
2016 was $11.4 million, while
Predecessor first quarter 2015 operating expense was $13.5 million. The 16% decline in operating
expense was primarily driven by lower activity levels.
International Liftboats reported an operating loss of $3.9 million by the Successor for the first
quarter 2016, while the Predecessor reported an operating loss of
$0.4 million for the first quarter
2015.
About Hercules Offshore, Inc.
Headquartered in Houston,
Hercules Offshore, Inc. operates a fleet of 27 jackup rigs,
including one rig under construction, and 19 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
296,715
|
|
$
330,780
|
|
|
Accounts Receivable,
Net
|
|
56,322
|
|
63,668
|
|
|
Prepaids
|
|
7,527
|
|
11,740
|
|
|
Other
|
|
3,955
|
|
4,015
|
|
|
|
|
364,519
|
|
410,203
|
|
|
|
|
|
|
|
|
Property and
Equipment, Net
|
|
465,752
|
|
465,497
|
|
Restricted
Cash
|
|
200,000
|
|
200,000
|
|
Other Assets,
Net
|
|
32,536
|
|
32,440
|
|
|
|
|
|
|
|
|
|
|
|
$
1,062,807
|
|
$
1,108,140
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Current Portion of
Long-term Debt
|
|
$
429,908
|
|
$
-
|
|
|
Accounts
Payable
|
|
30,514
|
|
43,616
|
|
|
Accrued
Liabilities
|
|
43,624
|
|
49,108
|
|
|
Other Current
Liabilities
|
|
17,333
|
|
6,148
|
|
|
|
|
521,379
|
|
98,872
|
|
|
|
|
|
|
|
|
Long-term
Debt
|
|
-
|
|
428,715
|
|
Other
Liabilities
|
|
4,299
|
|
16,622
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
537,129
|
|
563,931
|
|
|
|
|
|
|
|
|
|
|
|
$
1,062,807
|
|
$
1,108,140
|
|
|
|
|
|
|
|
|
HERCULES OFFSHORE,
INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(In thousands,
except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Three Months
Ended
March 31, 2016
|
|
|
Three Months
Ended
March 31, 2015
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
50,865
|
|
|
$
122,619
|
|
|
|
|
|
|
|
|
Costs and
Expenses:
|
|
|
|
|
|
|
Operating
Expenses
|
|
46,392
|
|
|
99,599
|
|
Depreciation and
Amortization
|
|
7,577
|
|
|
37,218
|
|
General and
Administrative
|
|
11,158
|
|
|
15,760
|
|
|
|
65,127
|
|
|
152,577
|
|
|
|
|
|
|
|
|
Operating
Loss
|
|
(14,262)
|
|
|
(29,958)
|
|
|
|
|
|
|
|
|
Other Income
(Expense):
|
|
|
|
|
|
|
Interest
Expense
|
|
(12,974)
|
|
|
(24,960)
|
|
Other, Net
|
|
1,711
|
|
|
420
|
|
|
|
|
|
|
|
|
Loss Before Income
Taxes
|
|
(25,525)
|
|
|
(54,498)
|
|
Income Tax
Provision
|
|
(1,406)
|
|
|
(2,617)
|
|
Net Loss
|
|
$
(26,931)
|
|
|
$
(57,115)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss Per Share -
Basic and Diluted
|
|
$
(1.35)
|
|
|
$
(0.35)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding - Basic and Diluted
|
|
19,989
|
|
|
161,057
|
|
|
|
|
|
|
|
|
HERCULES OFFSHORE,
INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(In
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Three Months
Ended
March 31, 2016
|
|
|
Three Months
Ended
March 31, 2015
|
|
|
|
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
Net Loss
|
|
$
(26,931)
|
|
|
$
(57,115)
|
|
Adjustments to
Reconcile Net Loss to Net Cash Provided by (Used in) Operating
Activities:
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
7,577
|
|
|
37,218
|
|
Non-Cash Accreted
Interest on Senior Secured Credit Facility
|
1,193
|
|
|
-
|
|
Non-Cash Gain on
Derivative
|
|
(1,645)
|
|
|
-
|
|
Other
|
|
149
|
|
|
299
|
|
Net Change in
Operating Assets and Liabilities
|
|
(6,335)
|
|
|
56,171
|
|
Net Cash Provided by
(Used in) Operating Activities
|
|
(25,992)
|
|
|
36,573
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
Capital
Expenditures
|
|
(8,353)
|
|
|
(30,740)
|
|
Insurance Proceeds
Received
|
|
-
|
|
|
2,418
|
|
Proceeds from Sale of
Assets, Net
|
|
280
|
|
|
1,984
|
|
Net Cash Used in
Investing Activities
|
|
(8,073)
|
|
|
(26,338)
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
Net Cash Used in
Financing Activities
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
Net Increase
(Decrease) in Cash and Cash Equivalents
|
|
(34,065)
|
|
|
10,235
|
|
Cash and Cash
Equivalents at Beginning of Period
|
|
330,780
|
|
|
207,937
|
|
Cash and Cash
Equivalents at End of Period
|
|
$
296,715
|
|
|
$
218,172
|
|
HERCULES OFFSHORE,
INC. AND SUBSIDIARIES
|
|
SELECTED FINANCIAL
AND OPERATING DATA
|
|
(Dollars in
thousands, except per day amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|
Three Months
Ended
March 31, 2016
|
|
|
Three Months
Ended
March 31, 2015
|
|
Change
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
Offshore:
|
|
|
|
|
|
|
|
|
|
|
Number of rigs (as of
end of period)
|
|
18
|
|
|
24
|
|
|
|
|
|
Revenue
|
|
$
12,379
|
|
|
$
52,875
|
|
$
(40,496)
|
|
(76.6%)
|
|
Operating
expenses
|
|
11,652
|
|
|
35,966
|
|
(24,314)
|
|
(67.6%)
|
|
Depreciation and
amortization expense
|
|
1,893
|
|
|
11,693
|
|
(9,800)
|
|
(83.8%)
|
|
General and
administrative expenses
|
|
789
|
|
|
1,386
|
|
(597)
|
|
(43.1%)
|
|
Operating income
(loss)
|
|
$
(1,955)
|
|
|
$
3,830
|
|
$
(5,785)
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Offshore:
|
|
|
|
|
|
|
|
|
|
|
Number of rigs (as of
end of period)
|
|
9
|
|
|
9
|
|
|
|
|
|
Revenue
|
|
$
27,472
|
|
|
$
51,648
|
|
$
(24,176)
|
|
(46.8%)
|
|
Operating
expenses
|
|
23,373
|
|
|
50,167
|
|
(26,794)
|
|
(53.4%)
|
|
Depreciation and
amortization expense
|
|
3,113
|
|
|
20,339
|
|
(17,226)
|
|
(84.7%)
|
|
General and
administrative expenses
|
|
1,137
|
|
|
1,994
|
|
(857)
|
|
(43.0%)
|
|
Operating
loss
|
|
$
(151)
|
|
|
$
(20,852)
|
|
$
20,701
|
|
(99.3%)
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Liftboats:
|
|
|
|
|
|
|
|
|
|
|
Number of liftboats
(as of end of period)
|
|
19
|
|
|
24
|
|
|
|
|
|
Revenue
|
|
$
11,014
|
|
|
$
18,096
|
|
$
(7,082)
|
|
(39.1%)
|
|
Operating
expenses
|
|
11,367
|
|
|
13,466
|
|
(2,099)
|
|
(15.6%)
|
|
Depreciation and
amortization expense
|
|
2,571
|
|
|
4,432
|
|
(1,861)
|
|
(42.0%)
|
|
General and
administrative expenses
|
|
963
|
|
|
549
|
|
414
|
|
75.4%
|
|
Operating
loss
|
|
$
(3,887)
|
|
|
$
(351)
|
|
$
(3,536)
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Company:
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
50,865
|
|
|
$
122,619
|
|
$
(71,754)
|
|
(58.5%)
|
|
Operating
expenses
|
|
46,392
|
|
|
99,599
|
|
(53,207)
|
|
(53.4%)
|
|
Depreciation and
amortization expense
|
|
7,577
|
|
|
37,218
|
|
(29,641)
|
|
(79.6%)
|
|
General and
administrative expenses
|
|
11,158
|
|
|
15,760
|
|
(4,602)
|
|
(29.2%)
|
|
Operating
loss
|
|
(14,262)
|
|
|
(29,958)
|
|
15,696
|
|
(52.4%)
|
|
Interest expense
|
|
(12,974)
|
|
|
(24,960)
|
|
11,986
|
|
(48.0%)
|
|
Other, net
|
|
1,711
|
|
|
420
|
|
1,291
|
|
n/m
|
|
Loss before income
taxes
|
|
(25,525)
|
|
|
(54,498)
|
|
28,973
|
|
(53.2%)
|
|
Income tax
provision
|
|
(1,406)
|
|
|
(2,617)
|
|
1,211
|
|
(46.3%)
|
|
Net loss
|
|
$
(26,931)
|
|
|
$
(57,115)
|
|
$
30,184
|
|
(52.8%)
|
|
HERCULES OFFSHORE,
INC. AND SUBSIDIARIES
|
|
SELECTED FINANCIAL
AND OPERATING DATA - (Continued)
|
|
(Dollars in
thousands, except per day amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
|
Three Months Ended
March 31, 2016
|
|
|
|
Operating
Days
|
|
Available
Days
|
|
Utilization
(1)
|
|
Average
Revenue per
Day (2)
|
|
Average
Operating
Expense per
Day (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
Offshore
|
|
210
|
|
819
|
|
25.6%
|
|
$ 58,948
|
|
$
14,227
|
|
International
Offshore
|
|
363
|
|
728
|
|
49.9%
|
|
75,680
|
|
32,106
|
|
International
Liftboats
|
|
650
|
|
1,638
|
|
39.7%
|
|
16,945
|
|
6,940
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Predecessor
|
|
|
|
Three Months Ended
March 31, 2015
|
|
|
|
Operating
Days
|
|
Available
Days
|
|
Utilization
(1)
|
|
Average
Revenue per
Day (2)
|
|
Average
Operating
Expense per
Day (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
Offshore
|
|
533
|
|
887
|
|
60.1%
|
|
$ 99,203
|
|
$
40,548
|
|
International
Offshore
|
|
345
|
|
720
|
|
47.9%
|
|
149,704
|
|
69,676
|
|
International
Liftboats
|
|
788
|
|
2,070
|
|
38.1%
|
|
22,964
|
|
6,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
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(2)
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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.
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(3)
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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.
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/hercules-offshore-inc-announces-first-quarter-2016-results-300264099.html
SOURCE Hercules Offshore, Inc.