COVINGTON, La., May 4,
2016 /PRNewswire/ -- Hornbeck Offshore Services, Inc.
(NYSE:HOS) announced today results for the first quarter ended
March 31, 2016. Following are
highlights for this period and the Company's future outlook:
- 1Q2016 diluted EPS was $(0.21), an incremental loss of $0.14 from 4Q2015 diluted EPS of $(0.07)
- 1Q2016 revenues were $76.8
million, a decrease of $11.9
million, or 13%, from 4Q2015 revenues of $88.7 million
- 1Q2016 EBITDA was $28.2
million, a decrease of $4.0
million, or 12%, from 4Q2015 EBITDA of $32.2 million
- 1Q2016 operating loss was (1)% of revenues, down from 4Q2015
operating income margin of 5%
- 1Q2016 average new gen OSV dayrates were $24,601, an increase of $568, or 2%, from the sequential quarter
- 1Q2016 utilization of the Company's new gen OSV fleet was
35%, down from 46% sequentially
- 1Q2016 effective utilization of the Company's active new gen
OSVs was 77%, down from 84% sequentially
- 1Q2016 effective new gen OSV dayrates were $8,635, a decrease of $2,492, or 22%, from the sequential
quarter
- Final four MPSV newbuild deliveries are still expected
during 2Q2016, 3Q2016, 2Q2017 and 4Q2017
- Total cash of $256 million
with only $104 million of growth
capex remaining to be funded under the 24-vessel newbuild
program
- Total of 42 new gen OSVs stacked (including five 300 class
OSVs), with four more stackings planned (including one 300 class
OSV)
- By the end of June 2016, the
Company now expects to have stacked a total of 46 new gen OSVs, up
from 33 since last reported
- Annualized cash opex and G&A savings due to proactive
cost containment measures are now $185
million, up from $160
million
The Company recorded a net loss for the first quarter of 2016 of
$(7.5) million, or $(0.21) per diluted share, compared to net income
of $35.9 million, or $0.99 per diluted share, for the year-ago
quarter; and a net loss of $(2.7)
million, or $(0.07) per
diluted share, for the fourth quarter of 2015. Included in the
Company's first quarter 2015 net income was a gain of $33.1 million ($20.7
million after-tax or $0.57 per
diluted share) related to the February
2015 sale of three 250EDF class OSVs to the U.S. Navy.
Excluding the impact of such gain on sale of assets, net
income and diluted EPS for the first quarter of 2015 would have
been $15.2 million, and $0.42 per share, respectively. Diluted
common shares for the first quarter of 2016 were 36.1 million
compared to 36.1 million and 35.9 for the first quarter and the
fourth quarter of 2015, respectively. GAAP requires the use
of basic shares outstanding for diluted EPS when reporting a net
loss. EBITDA for the first quarter of 2016 was $28.2 million compared to $94.8 million in the first quarter of 2015 and
$32.2 million in the fourth quarter
of 2015. Excluding the impact of the first quarter 2015 gain
on sale of assets, EBITDA for such quarter would have been
$61.7 million. For additional
information regarding EBITDA as a non-GAAP financial measure,
please see Note 10 to the accompanying data tables.
Revenues. Revenues were $76.8 million for the first quarter of 2016, a
decrease of $57.8 million, or 42.9%,
from $134.6 million for the first
quarter of 2015; and a decrease of $11.9
million, or 13.4%, from $88.7
million for the fourth quarter of 2015. The
year-over-year decrease in revenues was primarily due to soft
market conditions worldwide, which led to the Company's decision to
stack 32 incremental OSVs on various dates since December 2014. As of March 31, 2016, the Company had 37 OSVs stacked.
For the three months ended March 31,
2016, the Company had an average of 33.7 vessels stacked
compared to 9.5 vessels stacked in the prior-year quarter and 26.8
in the sequential quarter. The year-over-year decrease in
revenue was partially offset by $9.8
million in revenue earned from the full or partial-period
contribution of six vessels that were placed in service since
December 2014 under the Company's
fifth OSV newbuild program and a newbuild HOSMAX 300 class OSV that
was converted into a HOSMAX 300 class MPSV and returned to service
during the second quarter of 2015. Operating loss was
$(0.8) million, or (1.0)% of
revenues, for the first quarter of 2016, compared to operating
income of $33.8 million, or 25.1% of
revenues, for the comparably calculated prior-year quarter; and
operating income of $4.5 million, or
5.1% of revenues, for the fourth quarter of 2015. Average new
generation OSV dayrates for the first quarter of 2016 were
$24,601 compared to $26,705 for the same period in 2015 and
$24,033 for the fourth quarter of
2015. New generation OSV utilization was 35.1% for the first
quarter of 2016 compared to 64.7% for the year-ago quarter and
46.3% for the sequential quarter. Excluding stacked vessel
days, the Company's new generation OSV effective utilization was
77.4%, 76.6% and 84.4% for the same periods, respectively.
The year-over-year decrease in utilization is primarily due to soft
market conditions for high-spec OSVs operating in the GoM and the
incremental vessels that were stacked. Utilization-adjusted,
or effective, new generation OSV dayrates for the first quarter of
2016 were $8,635 compared to
$17,278 for the same period in 2015
and $11,127 for the fourth quarter of
2015.
Operating Expenses. Operating
expenses were $40.4 million for the
first quarter of 2016, a decrease of $21.0
million, or 34.2%, from $61.4
million for the first quarter of 2015; and a decrease of
$5.0 million, or 11.0%, from
$45.4 million for the fourth quarter
of 2015. The year-over-year decrease in operating expenses
was primarily due to vessels that the Company removed from its
active fleet count since December
2014, which resulted in a substantial reduction in mariner
headcount and other operating expenses. This decrease was
partially offset by $3.8 million of
operating costs related to the full or partial-period contribution
from newbuilds added to the Company's fleet since December
2014.
General and Administrative ("G&A").
G&A expenses of $8.7
million for the first quarter of 2016 were 11.3% of revenues
compared to $11.9 million, or 8.8% of
revenues, for the first quarter of 2015; and $11.2 million, or 12.6% of revenues, for the
fourth quarter of 2015. The year-over-year decrease in
G&A expenses was primarily attributable to lower short-term and
long-term shoreside incentive compensation expense.
Depreciation and Amortization. Depreciation and
amortization expense was $28.5
million for the first quarter of 2016, or $1.0 million and $0.8
million higher than the year-ago quarter and sequential
quarter, respectively. Depreciation increased by $2.2 million over the year-ago quarter primarily
due to the contribution of six HOSMAX vessels that were placed in
service since December 2014 and the
MPSV conversion of one HOSMAX 300 class OSV. The depreciation
increase was partially offset by a decrease in amortization expense
of $1.2 million, which was mainly
driven by postponed recertifications for certain of the Company's
stacked OSVs. Depreciation expense is expected to increase
from current levels as the vessels under the Company's current
newbuild program are placed in service. Amortization expense
is expected to decrease as the result of the deferral of regulatory
recertification activities for vessels that have been stacked.
Gain (Loss) on Sale of Assets. Included in
first quarter 2016 results was a $45,000 ($31,000
after-tax or $0.00 per diluted share)
loss on the sale of the Company's last remaining non-core
conventional OSV, the Cape
Breton, which closed on March 30,
2016. Included in first quarter 2015 results was a
$33.1 million ($20.7 million after-tax and $0.57 per diluted share) gain on the sale of
three 250EDF class OSVs, the HOS Arrowhead, the HOS
Eagleview and the HOS Westwind, to the U.S. Navy, which
closed on February 27,
2015.
Interest Expense. Interest expense was
$11.1 million during the first
quarter of 2016, or $0.8 million
higher than the prior-year quarter. The increase was
primarily due to the Company capitalizing a lower percentage of
interest compared to the prior-year period driven by a lower
average construction work-in-progress balance under the Company's
newbuild program. The Company recorded $5.0 million of capitalized construction period
interest, or roughly 31% of its total interest costs, for the first
quarter of 2016 compared to $5.8
million, or roughly 36% of its total interest costs, for the
year-ago quarter.
Future Outlook
Based on the key assumptions outlined below and in the attached
data tables, the following statements reflect management's current
expectations regarding future operating results and certain events.
These statements are forward-looking and actual results may
differ materially given the volatility inherent in the Company's
industry. Other than as expressly stated, these statements do
not include the potential impact of any significant further decline
in commodity prices for oil and natural gas; any additional future
repositioning voyages; unexpected vessel repairs or shipyard
delays; or future capital transactions, such as vessel acquisitions
or divestitures, business combinations, possible additional share
repurchases, financings or the unannounced expansion of
existing newbuild programs that may be commenced after the date of
this disclosure. Additional cautionary information concerning
forward-looking statements can be found on page 8 of this news
release.
Forward Guidance
The Company's forward guidance for selected operating and
financial data, outlined below and in the attached data tables,
reflects the current state of depressed commodity prices and
planned decreases in the capital spending budgets of its
customers.
Vessel Counts. As of
March 31, 2016, the Company's fleet
consisted of 62 new generation OSVs and six MPSVs. The
forecasted vessel counts presented in this press release reflect
the anticipated fiscal 2016 and 2017 MPSV newbuild deliveries
discussed below. With an average of 42.1 new generation OSVs
projected to be stacked during fiscal 2016, the Company's active
fleet for 2016 is expected to be comprised of an average of 19.8
new generation OSVs and 6.9 MPSVs. With an assumed average of
46.0 new generation OSVs projected to be stacked during fiscal
2017, the Company's active fleet for 2017 is expected to be
comprised of an average of 16.0 new generation OSVs and 8.7
MPSVs.
Operating Expenses. Aggregate
cash operating expenses are projected to be in the range of
$37.0 million to $42.0 million for
the second quarter of 2016, and $150.0
million to $165.0 million for the full-year 2016.
Reflected in the cash opex guidance range above are the
anticipated results of several cost containment measures initiated
by the Company due to prevailing market conditions, including,
among other actions, the stacking of 42 new generation OSVs,
including five 300 class OSVs, on various dates since October 1, 2014, as well as company-wide
headcount reductions and across-the-board pay-cuts for shoreside
and vessel personnel. The Company currently plans to stack
four additional OSVs, including one 300 class OSV, during the
second quarter of 2016 and may choose to stack additional vessels
as market conditions warrant. The cash operating expense
estimate above is exclusive of any additional repositioning
expenses the Company may incur in connection with the potential
relocation of more of its vessels into international markets or
back to the GoM, and any customer-required cost-of-sales related to
future contract fixtures that are typically recovered through
higher dayrates.
G&A Expenses. G&A
expenses are expected to be in the approximate range of
$11.0 million to $12.0 million for
the second quarter of 2016, and $42.0
million to $47.0 million for the full-year 2016.
Other Financial Data. Quarterly
depreciation, amortization, net interest expense, cash income
taxes, cash interest expense, weighted-average basic shares
outstanding and weighted-average diluted shares outstanding for the
second quarter of 2016 are projected to be $22.8 million, $5.8
million, $11.7 million,
$0.5 million, $11.3 million, 36.2 million and 37.0 million,
respectively. Guidance for depreciation, amortization, net
interest expense, cash income taxes and cash interest expense for
the full fiscal years 2016 and 2017 is provided on page 12 of this
press release. The Company's annual effective tax rate is
expected to be roughly 31.5% for fiscal 2016 and 33.0% for fiscal
2017.
Capital Expenditures Outlook
Update on OSV Newbuild Program #5. The
Company's fifth OSV newbuild program consists of four 300 class
OSVs, five 310 class OSVs, ten 320 class OSVs, three 310 class
MPSVs and two 400 class MPSVs. As of May 4, 2016, the Company has placed 20 vessels
in-service under this program. The four remaining vessels
under this 24-vessel domestic newbuild program are currently
expected to be delivered in accordance with the table below:
|
|
2016
|
2017
|
Total
|
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
|
|
Estimated
In-Service Dates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
310 class
MPSVs
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
400 class
MPSVs
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
2
|
|
Total
Newbuilds
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Based on recent deliveries during the first quarter of 2016, the
Company now owns 62 new generation vessels. These vessel
deliveries result in an average new generation OSV fleet complement
of 61.9 and 62.0 vessels for the fiscal years 2016 and 2017, of
which 42.1 and 46.0 vessels are projected to be stacked,
respectively. Based on the above schedule of projected vessel
in-service dates, the Company expects to own and operate eight and
ten MPSVs as of December 31, 2016,
and 2017, respectively. These vessel additions result in a
projected average MPSV fleet complement of 6.9, 8.7 and 10.0
vessels for the fiscal years 2016, 2017 and 2018, respectively.
The aggregate cost of the Company's fifth OSV newbuild
program, excluding construction period interest, is expected to be
approximately $1,335.0 million, of
which $98.3 million and $35.0 million are expected to be incurred in
fiscal years 2016 and 2017, respectively. From the inception
of this program through March 31,
2016, the Company has incurred $1,231.2 million, or 92.2%, of total expected
project costs, including $29.5
million that was spent during the first quarter of 2016.
The Company expects to incur newbuild project costs of
$41.8 million during the second
quarter of 2016.
Update on Maintenance Capital Expenditures.
Please refer to the attached data table on page 11 of
this press release for a summary, by period and by vessel type, of
historical and projected data for drydock downtime (in days) and
maintenance capital expenditures for each of the quarterly and/or
annual periods presented for the fiscal years 2015, 2016 and 2017.
Maintenance capital expenditures, which are recurring in
nature, primarily include regulatory drydocking charges incurred
for the recertification of vessels and other vessel capital
improvements that extend or maintain a vessel's economic useful
life. The Company expects that its maintenance capital
expenditures for its fleet of vessels will be approximately
$9.8 million and $20.3 million for the full fiscal years 2016 and
2017, respectively. These cash outlays are expected to be incurred
over approximately 130 and 312 days of aggregate commercial
downtime in 2016 and 2017, respectively, during which the vessels
will not earn revenue.
Update on Other Capital Expenditures. Please
refer to the attached data tables on page 11 of this press release
for a summary, by period, of historical and projected data for
other capital expenditures, for each of the quarterly and/or annual
periods presented for the fiscal years 2015, 2016 and 2017.
Other capital expenditures, which are generally
non-recurring, are comprised of the following: (i)
commercial-related vessel improvements, such as the addition of
cranes, ROVs, helidecks, living quarters and other specialized
vessel equipment, or the modification of vessel capacities or
capabilities, such as DP upgrades and mid-body extensions, which
costs are typically included in and offset, in whole or in part, by
higher dayrates charged to customers, and the speculative
relocation of vessels from one geographic market to another; and
(ii) non-vessel related capital expenditures, including costs
related to the Company's shore-based facilities, leasehold
improvements and other corporate expenditures, such as information
technology or office furniture and equipment. The Company
expects miscellaneous incremental commercial-related vessel
improvements and non-vessel capital expenditures to be
approximately $15.0 million and
$1.0 million, respectively, for the
full fiscal years 2016 and 2017, respectively. These cash
outlays are expected to be incurred over approximately 185 days of
aggregate commercial downtime in 2016, during which the vessels
will not earn revenue.
Liquidity Outlook
As of March 31, 2016, the Company
had a cash balance of $255.8 million
and an undrawn $300.0 million
revolving credit facility. Together with cash on-hand, the
Company expects to generate sufficient cash flow from operations to
cover all of its growth capital expenditures for the remaining four
HOSMAX vessels under construction, commercial-related capital
expenditures, and all of its annually recurring cash debt service,
maintenance capital expenditures and cash income taxes through the
completion of the newbuild program, as well as discretionary share
repurchases from time to time, without ever having to use its
currently undrawn revolving credit facility. The Company has
three tranches of funded unsecured debt outstanding that mature in
fiscal 2019, 2020 and 2021, respectively. While the Company
has an authorized share repurchase program, it will continue to
prioritize its usage of cash appropriate to the current market
cycle.
Conference Call
The Company will hold a conference call to discuss its first
quarter 2016 financial results and recent developments at
10:00 a.m. Eastern (9:00 a.m. Central) tomorrow, May 5, 2016. To participate in the call, dial
(412) 902-0030 and ask for the Hornbeck Offshore call at least 10
minutes prior to the start time. To access it live over the
Internet, please log onto the web at
http://www.hornbeckoffshore.com, on the "Investors" homepage of the
Company's website at least fifteen minutes early to register,
download and install any necessary audio software. Please
call the Company's investor relations firm, Dennard-Lascar, at
(713) 529-6600 to be added to its e-mail distribution list for
future Hornbeck Offshore news releases. An archived version of the
web cast will be available shortly after the call for a period of
60 days on the "Investors" homepage of the Company's website.
Additionally, a telephonic replay will be available through
May 12, 2016, and may be accessed by
calling (201) 612-7415 and using the pass code 13634982#.
Attached Data Tables
The Company has posted an electronic version of the following
four pages of data tables, which are downloadable in Microsoft
Excel™ format, on the "Investors" homepage of the Hornbeck Offshore
website for the convenience of analysts and investors.
In addition, the Company uses its website as a means of
disclosing material non-public information and for complying with
disclosure obligations under SEC Regulation FD. Such disclosures
will be included on the Company's website under the heading
"Investors." Accordingly, investors should monitor that portion of
the Company's website, in addition to following the Company's press
releases, SEC filings, public conference calls and webcasts.
Hornbeck Offshore Services, Inc. is a leading provider of
technologically advanced, new generation offshore service vessels
primarily in the Gulf of Mexico
and Latin America. Hornbeck
Offshore currently owns a fleet of 68 vessels primarily serving the
energy industry and has four additional ultra high-spec Upstream
vessels under construction for delivery through 2017.
Forward-Looking Statements
This Press Release contains "forward-looking statements," as
contemplated by the Private Securities Litigation Reform Act of
1995, in which the Company discusses factors it believes may affect
its performance in the future. Forward-looking statements are all
statements other than historical facts, such as statements
regarding assumptions, expectations, beliefs and projections about
future events or conditions. You can generally identify
forward-looking statements by the appearance in such a statement of
words like "anticipate," "believe," "continue," "could,"
"estimate," "expect," "forecast," "intend," "may," "might," "plan,"
"potential," "predict," "project," "remain," "should," "will," or
other comparable words or the negative of such words. The accuracy
of the Company's assumptions, expectations, beliefs and projections
depends on events or conditions that change over time and are thus
susceptible to change based on actual experience, new developments
and known and unknown risks. The Company gives no assurance that
the forward-looking statements will prove to be correct and does
not undertake any duty to update them. The Company's actual future
results might differ from the forward-looking statements made in
this Press Release for a variety of reasons, including sustained
low oil and natural gas prices; significant and sustained or
additional declines in oil and natural gas prices; a sustained
weakening of demand for the Company's services; unplanned customer
suspensions, cancellations, rate reductions or non-renewals of
vessel charters, vessel management contracts or failures to
finalize commitments to charter or manage vessels; sustained or
further reductions in capital spending budgets by customers; the
inability to accurately predict vessel utilization levels and
dayrates; fewer than anticipated deepwater and ultra-deepwater
drilling units operating in the GoM or other regions where the
Company operates; the effect of inconsistency by the United States government in the pace of
issuing drilling permits and plan approvals in the GoM or other
drilling regions; the Company's inability to successfully complete
the remainder of its current vessel newbuild program on-time and
on-budget, which involves the construction and integration of
highly complex vessels and systems; the inability to successfully
market the vessels that the Company owns, is constructing or might
acquire; the government's cancellation or non-renewal of the
management, operations and maintenance ("O&M") contracts for
vessels; an oil spill or other significant event in the United States or another offshore drilling
region that could have a broad impact on deepwater and other
offshore energy exploration and production activities, such as the
suspension of activities or significant regulatory responses; the
imposition of laws or regulations that result in reduced
exploration and production activities or that increase the
Company's operating costs or operating requirements; environmental
litigation that impacts customer plans or projects; disputes with
customers; bureaucratic, administrative or operating barriers that
delay vessels in foreign markets from going on-hire or result in
contractual penalties or deductions imposed by foreign customers;
industry risks; the impact stemming from the reduction of
Petrobras' announced plans for or administrative barriers to
exploration and production activities in Brazil; less than expected growth in Mexican
offshore activities; age or other restrictions imposed on our
vessels by customers; unanticipated difficulty in effectively
competing in or operating in international markets; less than
anticipated subsea infrastructure and field development demand in
the GoM and other markets affecting our MPSVs; the level of fleet
additions by the Company and its competitors that could result in
vessel over capacity in the markets in which the Company competes;
economic and geopolitical risks; weather-related risks; the
shortage of or the inability to attract and retain qualified
personnel, when needed, including vessel personnel for active and
newly constructed vessels; the inability of the Company to obtain
amendments under its revolving credit facility on terms acceptable
to the Company; any success in unionizing the Company's U.S. fleet
personnel; regulatory risks; the repeal or administrative weakening
of the Jones Act or changes in the interpretation of the Jones Act
related to the U.S. citizenship qualification; drydocking delays
and cost overruns and related risks; vessel accidents, pollution
incidents, or other events resulting in lost revenue, fines,
penalties or other expenses that are unrecoverable from insurance
policies or other third parties; unexpected litigation and
insurance expenses; or fluctuations in foreign currency valuations
compared to the U.S. dollar and risks associated with expanded
foreign operations, such as non-compliance with or the
unanticipated effect of tax laws, customs laws, immigration laws,
or other legislation that result in higher than anticipated tax
rates or other costs or the inability to repatriate foreign-sourced
earnings and profits. In addition, the Company's future results may
be impacted by adverse economic conditions, such as inflation,
deflation, or lack of liquidity in the capital markets, that may
negatively affect it or parties with whom it does business
resulting in their non-payment or inability to perform obligations
owed to the Company, such as the failure of customers to fulfill
their contractual obligations or the failure by individual banks to
provide funding under the Company's credit agreement, if required.
Further, the Company can give no assurance regarding when and
to what extent it will effect share repurchases. Should one
or more of the foregoing risks or uncertainties materialize in a
way that negatively impacts the Company, or should the Company's
underlying assumptions prove incorrect, the Company's actual
results may vary materially from those anticipated in its
forward-looking statements, and its business, financial condition
and results of operations could be materially and adversely
affected and, if sufficiently severe, could result in noncompliance
with certain covenants of the Company's currently undrawn revolving
credit facility, which would require an amendment of such facility.
Additional factors that you should consider are set forth in detail
in the "Risk Factors" section of the Company's most recent Annual
Report on Form 10-K as well as other filings the Company has made
and will make with the Securities and Exchange Commission which,
after their filing, can be found on the Company's website
www.hornbeckoffshore.com.
Regulation G Reconciliation
This Press Release also contains references to the non-GAAP
financial measures of earnings, or net income, before interest,
income taxes, depreciation and amortization, or EBITDA, and
Adjusted EBITDA. The Company views EBITDA and Adjusted EBITDA
primarily as liquidity measures and, therefore, believes that the
GAAP financial measure most directly comparable to such measure is
cash flows provided by operating activities. Reconciliations of
EBITDA and Adjusted EBITDA to cash flows provided by operating
activities are provided in the table below. Management's opinion
regarding the usefulness of EBITDA to investors and a description
of the ways in which management uses such measure can be found in
the Company's most recent Annual Report on Form 10-K filed with the
Securities and Exchange Commission, as well as in Note 10 to the
attached data tables.
Contacts:
|
Todd Hornbeck,
CEO
|
|
Jim Harp,
CFO
|
|
Hornbeck Offshore
Services
|
|
985-727-6802
|
|
|
|
Ken Dennard, Managing
Partner
|
|
Dennard-Lascar /
713-529-6600
|
Hornbeck Offshore
Services, Inc. and Subsidiaries
|
|
Unaudited
Consolidated Statements of Operations
|
|
(in thousands,
except Other Operating and Per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
Statement of
Operations (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
|
|
|
2016
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$ 76,820
|
|
$
88,719
|
|
$ 134,624
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
40,429
|
|
45,360
|
|
61,420
|
|
|
|
|
Depreciation and amortization
|
28,452
|
|
27,723
|
|
27,470
|
|
|
|
|
General and administrative expenses
|
8,674
|
|
11,154
|
|
11,892
|
|
|
|
|
|
77,555
|
|
84,237
|
|
100,782
|
|
|
|
|
Gain
(loss) on sale of assets
|
(45)
|
|
-
|
|
33,056
|
|
|
|
|
Operating income (loss)
|
(780)
|
|
4,482
|
|
66,898
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
Interest income
|
377
|
|
537
|
|
214
|
|
|
|
|
Interest expense
|
(11,064)
|
|
(9,601)
|
|
(10,262)
|
|
|
|
|
Other income (expense), net 1
|
504
|
|
(11)
|
|
440
|
|
|
|
|
|
(10,183)
|
|
(9,075)
|
|
(9,608)
|
|
|
|
|
Income (loss) before
income taxes
|
(10,963)
|
|
(4,593)
|
|
57,290
|
|
|
|
|
Income tax expense
(benefit)
|
(3,449)
|
|
(1,922)
|
|
21,437
|
|
|
|
|
Net income
(loss)
|
$ (7,514)
|
|
$
(2,671)
|
|
$ 35,853
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per common share
|
$ (0.21)
|
|
$
(0.07)
|
|
$ 1.01
|
|
|
|
|
Diluted earnings
(loss) per common share
|
$ (0.21)
|
|
$
(0.07)
|
|
$ 0.99
|
|
|
|
|
Weighted average
basic shares outstanding
|
36,085
|
|
35,851
|
|
35,630
|
|
|
|
|
Weighted average
diluted shares outstanding 2
|
36,085
|
|
35,851
|
|
36,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operating
Data (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
|
|
|
2016
|
|
2015
|
|
2015
|
|
|
|
|
Offshore Supply
Vessels:
|
|
|
|
|
|
|
|
|
|
Average number of new
generation OSVs 3
|
61.6
|
|
59.6
|
|
61.4
|
|
|
|
|
Average number of active new
generation OSVs 4
|
27.9
|
|
32.8
|
|
51.9
|
|
|
|
|
Average new generation OSV
fleet capacity (deadweight) 3
|
219,398
|
|
207,719
|
|
208,495
|
|
|
|
|
Average new generation OSV
capacity (deadweight)
|
3,561
|
|
3,484
|
|
3,395
|
|
|
|
|
Average new generation
utilization rate 5
|
35.1%
|
|
46.3%
|
|
64.7%
|
|
|
|
|
Effective new generation
utilization rate 6
|
77.4%
|
|
84.4%
|
|
76.6%
|
|
|
|
|
Average new generation
dayrate 7
|
$ 24,601
|
|
$
24,033
|
|
$ 26,705
|
|
|
|
|
Effective dayrate
8
|
$ 8,635
|
|
$
11,127
|
|
$ 17,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data
(unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
March 31,
|
|
As of
December 31,
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$ 255,841
|
|
$
259,801
|
|
|
|
|
|
|
Working
capital
|
264,638
|
|
278,491
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
2,596,303
|
|
2,574,661
|
|
|
|
|
|
|
Total
assets
|
2,974,182
|
|
2,984,416
|
|
|
|
|
|
|
Total long-term
debt
|
1,073,571
|
|
1,070,281
|
|
|
|
|
|
|
Stockholders'
equity
|
1,447,243
|
|
1,446,163
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow Data
(unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
March
31,
|
|
March
31,
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
$ 39,253
|
|
$
61,438
|
|
|
|
|
|
|
Cash provided by
(used in) investing activities
|
(43,854)
|
|
35,152
|
|
|
|
|
|
|
Cash used in
financing activities
|
-
|
|
(1,953)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hornbeck Offshore
Services, Inc. and Subsidiaries
|
Unaudited Other
Financial Data
|
(in thousands,
except Financial Ratios)
|
|
|
|
|
|
|
|
|
Other Financial
Data (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
|
2016
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
Vessel
revenues
|
$ 68,216
|
|
$
79,764
|
|
$ 130,176
|
|
|
Non-vessel revenues
9
|
8,604
|
|
8,955
|
|
4,448
|
|
|
Total
revenues
|
$ 76,820
|
|
$
88,719
|
|
$ 134,624
|
|
|
Operating income
(loss)
|
$ (780)
|
|
$
4,482
|
|
$ 66,898
|
|
|
Operating margin
(deficit)
|
(1.0%)
|
|
5.1%
|
|
49.7%
|
|
|
Components
of EBITDA 10
|
|
|
|
|
|
|
|
Net income
(loss)
|
$ (7,514)
|
|
$
(2,671)
|
|
$ 35,853
|
|
|
Interest
expense, net
|
10,687
|
|
9,064
|
|
10,048
|
|
|
Income tax
expense (benefit)
|
(3,449)
|
|
(1,922)
|
|
21,437
|
|
|
Depreciation
|
22,173
|
|
21,452
|
|
19,984
|
|
|
Amortization
|
6,279
|
|
6,271
|
|
7,486
|
|
|
EBITDA
10
|
$ 28,176
|
|
$
32,194
|
|
$ 94,808
|
|
|
Adjustments
to EBITDA
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
1,172
|
|
2,336
|
|
1,972
|
|
|
Interest
income
|
377
|
|
537
|
|
214
|
|
|
Adjusted
EBITDA 10
|
$ 29,725
|
|
$
35,067
|
|
$ 96,994
|
|
|
EBITDA
10 Reconciliation to GAAP:
|
|
|
|
|
|
|
|
EBITDA
10
|
$ 28,176
|
|
$
32,194
|
|
$ 94,808
|
|
|
Cash paid for
deferred drydocking charges
|
(1,207)
|
|
(1,233)
|
|
(2,553)
|
|
|
Cash paid for
interest
|
(13,787)
|
|
(11,341)
|
|
(14,032)
|
|
|
Cash paid for
taxes
|
(1,752)
|
|
(1,477)
|
|
(1,373)
|
|
|
Changes in
working capital
|
26,709
|
|
11,015
|
|
16,332
|
|
|
Stock-based
compensation expense
|
1,172
|
|
2,336
|
|
1,972
|
|
|
(Gain) loss on
sale of assets
|
45
|
|
-
|
|
(33,056)
|
|
|
Changes in
other, net
|
(103)
|
|
(119)
|
|
(660)
|
|
|
Net cash
provided by operating activities
|
$ 39,253
|
|
$
31,375
|
|
$ 61,438
|
|
|
|
|
|
|
|
|
|
|
Hornbeck Offshore
Services, Inc. and Subsidiaries
|
Unaudited Other
Financial Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures and Drydock Downtime Data from Continuing Operations
(unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2015
|
|
|
|
|
|
|
|
Drydock
Downtime:
|
|
|
|
|
|
|
|
|
|
|
|
|
New-Generation
OSVs
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
vessels commencing drydock activities
|
2.0
|
|
1.0
|
|
2.0
|
|
|
|
|
|
|
|
Commercial
downtime (in days)
|
63
|
|
29
|
|
58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MPSVs
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
vessels commencing drydock activities
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
Commercial
downtime (in days)
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial-related
Downtime11:
|
|
|
|
|
|
|
|
|
|
|
|
|
New-Generation
OSVs
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
vessels commencing commercial-related downtime
|
-
|
|
-
|
|
1.0
|
|
|
|
|
|
|
|
Commercial
downtime (in days)
|
-
|
|
-
|
|
180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MPSVs
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
vessels commencing commercial-related downtime
|
1.0
|
|
1.0
|
|
-
|
|
|
|
|
|
|
|
Commercial
downtime (in days)
|
149
|
|
50
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance and
Other Capital Expenditures (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance
Capital Expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
drydocking charges
|
$ 1,207
|
|
$
1,233
|
|
$ 2,553
|
|
|
|
|
|
|
|
Other vessel
capital improvements
|
3,519
|
|
7,563
|
|
2,250
|
|
|
|
|
|
|
|
|
4,726
|
|
8,796
|
|
4,803
|
|
|
|
|
|
|
|
Other Capital
Expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial-related vessel improvements
|
6,829
|
|
31,769
|
|
19,592
|
|
|
|
|
|
|
|
Non-vessel
related capital expenditures
|
266
|
|
632
|
|
4,388
|
|
|
|
|
|
|
|
|
7,095
|
|
32,401
|
|
23,980
|
|
|
|
|
|
|
|
|
$ 11,821
|
|
$
41,197
|
|
$ 28,783
|
|
|
|
|
|
|
|
Growth Capital
Expenditures (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
OSV newbuild
program #5
|
$ 29,507
|
|
$
32,277
|
|
$ 47,763
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forecasted
Data12:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q
2016A
|
|
2Q
2016E
|
|
3Q
2016E
|
|
4Q
2016E
|
|
2016E
|
|
2017E
|
|
Drydock
Downtime:
|
|
|
|
|
|
|
|
|
|
|
|
|
New-Generation
OSVs
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
vessels commencing drydock activities
|
2.0
|
|
1.0
|
|
-
|
|
1.0
|
|
4.0
|
|
10.0
|
|
Commercial
downtime (in days)
|
63
|
|
27
|
|
4
|
|
10
|
|
104
|
|
206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MPSVs
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
vessels commencing drydock activities
|
-
|
|
-
|
|
-
|
|
1.0
|
|
1.0
|
|
4.0
|
|
Commercial
downtime (in days)
|
-
|
|
-
|
|
-
|
|
26
|
|
26
|
|
106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial-related
Downtime11:
|
|
|
|
|
|
|
|
|
|
|
|
|
New-Generation
OSVs
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
vessels commencing commercial-related downtime
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Commercial
downtime (in days)
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MPSVs
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
vessels commencing commercial-related downtime
|
1.0
|
|
-
|
|
1.0
|
|
-
|
|
2.0
|
|
-
|
|
Commercial
downtime (in days)
|
149
|
|
16
|
|
20
|
|
-
|
|
185
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance and
Other Capital Expenditures (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
Maintenance
Capital Expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
drydocking charges
|
$
1.2
|
|
$
1.8
|
|
$
0.5
|
|
$
1.1
|
|
$ 4.6
|
|
$
18.6
|
|
Other vessel
capital improvements
|
3.5
|
|
1.5
|
|
0.1
|
|
0.1
|
|
5.2
|
|
1.7
|
|
|
4.7
|
|
3.3
|
|
0.6
|
|
1.2
|
|
9.8
|
|
20.3
|
|
Other Capital
Expenditures:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial-related vessel improvements
|
6.8
|
|
6.0
|
|
1.2
|
|
-
|
|
14.0
|
|
-
|
|
Non-vessel
related capital expenditures
|
0.3
|
|
0.3
|
|
0.2
|
|
0.2
|
|
1.0
|
|
1.0
|
|
|
7.1
|
|
6.3
|
|
1.4
|
|
0.2
|
|
15.0
|
|
1.0
|
|
|
$ 11.8
|
|
$
9.6
|
|
$
2.0
|
|
$
1.4
|
|
$ 24.8
|
|
$
21.3
|
|
Growth Capital
Expenditures (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
OSV newbuild
program #5
|
$ 29.5
|
|
$
41.8
|
|
$ 19.1
|
|
$
7.9
|
|
$ 98.3
|
|
$
35.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hornbeck Offshore
Services, Inc. and Subsidiaries
|
Unaudited Other
Fleet and Financial Data
|
(in millions,
except Average Vessels, Contract Backlog and Tax
Rate)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Guidance
of Selected Data from Continuing Operations
(unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q
2016E
|
|
Full-Year
2016E
|
|
Full-Year
2017E
|
|
|
|
|
|
|
|
|
Avg
Vessels
|
|
Avg
Vessels
|
|
Avg
Vessels
|
|
|
|
|
|
|
|
Fleet Data (as of
4-May-2016):
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
|
|
|
|
|
|
|
|
|
|
|
|
|
New
generation OSVs - Active
|
19.5
|
|
19.8
|
|
16.0
|
|
|
|
|
|
|
|
New
generation OSVs - Stacked 13
|
42.5
|
|
42.1
|
|
46.0
|
|
|
|
|
|
|
|
New
generation OSVs - Total
|
62.0
|
|
61.9
|
|
62.0
|
|
|
|
|
|
|
|
New
generation MPSVs
|
6.2
|
|
6.9
|
|
8.7
|
|
|
|
|
|
|
|
Total
Upstream
|
68.2
|
|
68.8
|
|
70.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q 2016E
Range
|
|
Full-Year
2016E Range
|
|
|
|
|
|
Cost
Data:
|
Low14
|
|
High
14
|
|
Low14
|
|
High
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$
37.0
|
|
$
42.0
|
|
$
150.0
|
|
$ 165.0
|
|
|
|
|
|
General and administrative
expenses
|
$
11.0
|
|
$
12.0
|
|
$
42.0
|
|
$ 47.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q
2016A
|
|
2Q
2016E
|
|
3Q
2016E
|
|
4Q
2016E
|
|
2016E
|
|
2017E
|
|
Other Financial
Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
$
22.2
|
|
$
22.8
|
|
$
23.6
|
|
$ 24.2
|
|
$ 92.8
|
|
$ 98.8
|
|
Amortization
|
6.3
|
|
5.8
|
|
4.6
|
|
4.2
|
|
20.9
|
|
15.4
|
|
Interest
expense, net:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
$
13.5
|
|
$
13.5
|
|
$
13.5
|
|
$ 13.5
|
|
$ 54.0
|
|
$ 54.0
|
|
Incremental
non-cash OID interest expense 15
|
2.6
|
|
2.6
|
|
2.6
|
|
2.7
|
|
10.5
|
|
11.1
|
|
Capitalized
interest
|
(5.0)
|
|
(4.2)
|
|
(3.2)
|
|
(2.5)
|
|
(14.9)
|
|
(6.8)
|
|
Interest
income
|
(0.4)
|
|
(0.2)
|
|
(0.2)
|
|
(0.1)
|
|
(0.9)
|
|
(0.4)
|
|
Total interest
expense, net
|
$
10.7
|
|
$
11.7
|
|
$
12.7
|
|
$ 13.6
|
|
$ 48.7
|
|
$ 57.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
rate
|
31.5%
|
|
31.5%
|
|
31.5%
|
|
31.5%
|
|
31.5%
|
|
33.0%
|
|
Cash income
taxes
|
$
1.8
|
|
$
0.5
|
|
$
0.5
|
|
$
0.5
|
|
$ 3.3
|
|
$ 2.2
|
|
Cash interest
expense
|
13.8
|
|
11.3
|
|
13.8
|
|
11.3
|
|
50.2
|
|
50.2
|
|
Weighted
average basic shares outstanding
|
36.1
|
|
36.2
|
|
36.3
|
|
36.3
|
|
36.2
|
|
36.8
|
|
Weighted
average diluted shares outstanding 16
|
36.8
|
|
37.0
|
|
37.1
|
|
37.2
|
|
37.0
|
|
37.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Represents other
income and expenses, including equity in income from investments
and foreign currency transaction gains or losses.
|
|
|
2
|
Due to net losses for
the three months ended March 31, 2016 and December 31, 2015, the
Company excluded the dilutive effect of equity awards representing
the rights to acquire 939 and 894 shares of common stock,
respectively, because the effect was anti-dilutive. Stock
options representing rights to acquire 337 shares of common stock
for the three months ended March 31, 2015 were excluded from the
calculation of diluted earnings per share, because the effect was
antidilutive after considering the exercise price of the options in
comparison to the average market price, proceeds from exercise,
taxes and related unamortized compensation. As of March 31,
2016, December 31, 2015, and March 31, 2015, the 1.500% convertible
senior notes were not dilutive, as the average price of the
Company's stock was less than the effective conversion price of
$68.53 for such notes.
|
|
|
3
|
The Company owned 62
new generation OSVs as of March 31, 2016. Excluded from this
data are six MPSVs owned and operated by the
Company.
|
|
|
4
|
In response to weak
market conditions, the Company elected to stack certain of its new
generation OSVs on various dates since October 1, 2014.
Active new generation OSVs represent vessels that are immediately
available for service during each respective period.
|
|
|
5
|
Average utilization
rates are average rates based on a 365-day year. Vessels are
considered utilized when they are generating revenues.
|
|
|
6
|
Effective utilization
rate is based on a denominator comprised only of vessel-days
available for service by the active fleet, which excludes the
impact of stacked vessel days.
|
|
|
7
|
Average new
generation OSV dayrates represent average revenue per day, which
includes charter hire, crewing services, and net brokerage
revenues, based on the number of days during the period that the
OSVs generated revenues.
|
|
|
8
|
Effective dayrate
represents the average dayrate multiplied by the utilization rate
for the respective period.
|
|
|
9
|
Represents revenues
from shore-based operations, vessel-management services, including
from the O&M contract with the U.S. Navy, and ancillary
equipment rentals, including from ROVs.
|
|
|
10
|
Non-GAAP Financial
Measure
|
|
|
|
The Company discloses
and discusses EBITDA as a non-GAAP financial measure in its public
releases, including quarterly earnings releases, investor
conference calls and other filings with the Securities and Exchange
Commission. The Company defines EBITDA as earnings (net
income) before interest, income taxes, depreciation and
amortization. The Company's measure of EBITDA may not be
comparable to similarly titled measures presented by other
companies. Other companies may calculate EBITDA differently
than the Company, which may limit its usefulness as a comparative
measure.
|
|
|
|
|
The Company views
EBITDA primarily as a liquidity measure and, as such, believes that
the GAAP financial measure most directly comparable to it is cash
flows provided by operating activities. Because EBITDA is not
a measure of financial performance calculated in accordance with
GAAP, it should not be considered in isolation or as a substitute
for operating income, net income or loss, cash flows provided by
operating, investing and financing activities, or other income or
cash flow statement data prepared in accordance with
GAAP.
|
|
|
|
|
EBITDA is widely used
by investors and other users of the Company's financial statements
as a supplemental financial measure that, when viewed with GAAP
results and the accompanying reconciliations, the Company believes
provides additional information that is useful to gain an
understanding of the factors and trends affecting its ability to
service debt, pay deferred taxes and fund drydocking charges and
other maintenance capital expenditures. The Company also
believes the disclosure of EBITDA helps investors meaningfully
evaluate and compare its cash flow generating capacity from quarter
to quarter and year to year.
|
|
|
|
|
EBITDA is also a
financial metric used by management (i) as a supplemental internal
measure for planning and forecasting overall expectations and for
evaluating actual results against such expectations; (ii) as a
significant criteria for annual incentive cash bonuses paid to the
Company's executive officers and other shore-based employees; (iii)
to compare to the EBITDA of other companies when evaluating
potential acquisitions; and (iv) to assess the Company's ability to
service existing fixed charges and incur additional
indebtedness.
|
|
|
|
|
In addition, the
Company also makes certain adjustments, as applicable, to EBITDA
for losses on early extinguishment of debt, stock-based
compensation expense and interest income, or Adjusted EBITDA, to
internally evaluate its performance based on the computation of
ratios used in certain financial covenants of its credit agreements
with various lenders. The Company believes that these ratios
can be material components of financial covenants and, when
applicable, failure to comply with such covenants could result in
the acceleration of indebtedness or the imposition of restrictions
on the Company's financial flexibility.
|
|
|
|
|
Set forth below are
the material limitations associated with using EBITDA as a non-GAAP
financial measure compared to cash flows provided by operating
activities.
|
|
|
|
|
•
|
EBITDA does not
reflect the future capital expenditure requirements that may be
necessary to replace the Company's existing vessels as a result of
normal wear and tear,
|
|
|
|
|
•
|
EBITDA does not
reflect the interest, future principal payments and other
financing-related charges necessary to service the debt that the
Company has incurred in acquiring and constructing its
vessels,
|
|
|
|
|
•
|
EBITDA does not
reflect the deferred income taxes that the Company will eventually
have to pay once it is no longer in an overall tax net operating
loss position, as applicable, and
|
|
|
|
|
•
|
EBITDA does not
reflect changes in the Company's net working capital
position.
|
|
|
|
|
Management
compensates for the above-described limitations in using EBITDA as
a non-GAAP financial measure by only using EBITDA to supplement the
Company's GAAP results.
|
|
|
|
11
|
Commercial-related
Downtime results from commercial-related vessel improvements, such
as the addition of cranes, ROVs, helidecks, living quarters and
other specialized vessel equipment; the modification of vessel
capacities or capabilities, such as DP upgrades and mid-body
extensions, which costs are typically included in and offset, in
whole or in part, by higher dayrates charged to customers; and the
speculative relocation of vessels from one geographic market to
another.
|
|
|
|
12
|
The capital
expenditure amounts included in this table are anticipated cash
outlays before the allocation of construction period interest, as
applicable.
|
|
|
|
13
|
As of May 4, 2016,
the Company's inactive fleet of 42 new generation OSVs that were
"stacked" was comprised of the following: eleven 200 class OSVs,
twenty-three 240 class OSVs, three 265 class OSVs and five 300
class OSVs. In addition, the Company plans to stack three 240
class OSVs and one 300 class OSV during the remainder of the second
quarter of 2016.
|
|
|
|
14
|
The "low" and "high"
ends of the guidance ranges set forth in this table are not
intended to cover unexpected variations from currently anticipated
market conditions. These ranges provide only a reasonable
deviation from the conditions that are expected to
occur.
|
|
|
|
15
|
Represents
incremental imputed non-cash OID interest expense required by
accounting standards pertaining to the Company's 1.500% convertible
senior notes due 2019.
|
|
|
|
16
|
Projected
weighted-average diluted shares do not reflect any potential
dilution resulting from the Company's 1.500% convertible senior
notes. Warrants related to the Company's 1.500% convertible
senior notes become dilutive when the average price of the
Company's stock exceeds the effective conversion price for such
notes of $68.53.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/hornbeck-offshore-announces-first-quarter-2016-results-300263054.html
SOURCE Hornbeck Offshore Services, Inc.