Teekay Corporation Reports First Quarter 2014 Results
HAMILTON, BERMUDA--(Marketwired - May 15, 2014) - Teekay
Corporation (NYSE:TK) -
Highlights
- First quarter of 2014 total cash flow from vessel operations of
$265.0 million, an increase of 37 percent from the same period of
the prior year.
- First quarter of 2014 adjusted net income attributable to
stockholders of Teekay of $3.5 million, or $0.05 per share
(excluding specific items which decreased GAAP net income by $4.0
million, or $0.06 per share).
- The Voyageur Spirit FPSO received its certificate of
final acceptance from the charterer effective February 22,
2014.
- Teekay Parent completed the sale of four conventional tankers
to Tanker Investments Ltd. (TIL); and agreed to sell an
ownership interest in Teekay Parent's conventional tanker
commercial and technical management operations to Teekay Tankers
Ltd.
- Total consolidated liquidity of approximately $1.3 billion as
at March 31, 2014.
Teekay Corporation (Teekay or the Company)
today reported adjusted net income attributable to stockholders of
Teekay(1) of $3.5 million, or $0.05 per share, for the quarter
ended March 31, 2014, compared to adjusted net loss attributable to
stockholders of Teekay of $11.7 million, or $0.17 per share, for
the same period of the prior year. Adjusted net income (loss)
attributable to stockholders of Teekay excludes a number of
specific items that had the net effect of decreasing GAAP net
income by $4.0 million, or $0.06 per share, for the three months
ended March 31, 2014 and decreasing GAAP net loss by $5.5 million,
or $0.08 per share, for the same period of the prior year, as
detailed in Appendix A to this release. Including these
items, the Company reported, on a GAAP basis, net loss attributable
to stockholders of Teekay of $0.5 million, or $0.01 per share, for
the quarter ended March 31, 2014, compared to net loss attributable
to stockholders of Teekay of $6.1 million, or $0.09 per share, for
the same period of the prior year. Net revenues(2) for the first
quarter of 2014 were $471.5 million, compared to $424.7 million for
the same period of the prior year.
On April 4, 2014, the Company declared a cash dividend on its
common stock of $0.31625 per share for the quarter ended March 31,
2014. The cash dividend was paid on April 30, 2014 to all
shareholders of record on April 17, 2014.
(1) Adjusted net
income (loss) attributable to stockholders of Teekay is a non-GAAP
financial measure. Please refer to Appendix A to this
release for a reconciliation of this non-GAAP measure as used in
this release to the most directly comparable financial measure
under United States generally accepted accounting principles
(GAAP) and for information about specific items affecting
net income (loss) that are typically excluded by securities
analysts in their published estimates of the Company's financial
results. |
|
(2) Net revenues
is a non-GAAP financial measure used by certain investors to
measure the financial performance of shipping companies. Please
refer to Appendix E to this release for a reconciliation
of this non-GAAP measure as used in this release to the most
directly comparable financial measure under GAAP. |
"We continue to be focused on project execution, improving
profitability and supporting the growth of our daughter entities,
consistent with our strategic objective of having our ships and
offshore units owned at the daughter company level and creating
value primarily by increasing the cash flows generated by our
publicly-traded daughter entities," commented Peter Evensen, Teekay
Corporation's President and Chief Executive Officer. "During the
quarter, we co-created and invested in Tanker Investments Ltd., or
TIL, to which we sold our last four directly owned Suezmax tankers
in February. In addition, we recently agreed to sell an ownership
interest in our conventional tanker commercial and technical
management operations to Teekay Tankers. As a result of these
transactions, we have further reduced our direct exposure to the
volatility of the conventional tanker market, while still
maintaining an interest in the upside from a tanker market recovery
through Teekay Tankers and TIL."
Mr. Evensen continued, "The Petrojarl Knarr FPSO
newbuilding remains on-track for its scheduled sail-away from the
shipyard in late-June and start-up on its North Sea oil field in
the fourth quarter. The Petrojarl Banff FPSO arrived at
the Banff oil field in the first quarter and upon completion of
installation at the field the FPSO is expected to recommence its
charter contract and begin generating cash flow for Teekay Parent
late in the second quarter. As each of Teekay Parent's remaining
FPSO units become eligible for dropdown, they will serve as an
important source of growth for Teekay Offshore, which benefits
Teekay Parent through its general and limited partner interests in
the Partnership, as well as move Teekay Parent towards becoming net
debt free.
Mr. Evensen added, "Looking ahead, in addition to our existing
project pipeline, the efforts of our offshore and gas business
development teams have resulted in the recent signing of letters of
intent by our two MLP daughter entities, Teekay Offshore and Teekay
LNG, for exciting new accretive projects which, if finalized, we
expect will further contribute to the value of our general
partnerships."
Operating
Results
The following tables highlight certain financial information for
each of Teekay's four publicly-listed entities: Teekay Offshore
Partners L.P. (Teekay Offshore) (NYSE:TOO), Teekay LNG
Partners L.P. (Teekay LNG) (NYSE:TGP), Teekay Tankers Ltd.
(Teekay Tankers) (NYSE:TNK) and Teekay Parent (which
excludes the results attributed to Teekay Offshore, Teekay LNG and
Teekay Tankers). A brief description of each entity and an analysis
of its respective financial results follow the tables below. Please
also refer to the "Fleet List" section below and Appendix
B to this release for further details.
|
|
|
Three Months Ended March 31, 2014 |
|
(unaudited) |
(in thousands of U.S. dollars) |
Teekay Offshore |
Teekay LNG |
Teekay Tankers |
Teekay Parent |
|
Consolidation Adjustments |
|
Teekay Corporation Consolidated |
|
|
|
|
|
|
|
|
|
Net revenues(1) |
225,780 |
100,157 |
60,320 |
111,749 |
|
(26,524 |
) |
471,482 |
|
|
|
|
|
|
|
|
|
Vessel operating expense |
88,130 |
24,256 |
22,794 |
66,006 |
|
- |
|
201,186 |
Time-charter hire expense |
11,412 |
- |
1,052 |
31,276 |
|
(27,448 |
) |
16,292 |
Depreciation and amortization |
48,488 |
24,110 |
12,502 |
18,358 |
|
- |
|
103,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CFVO - Consolidated(2)(3) |
108,149 |
71,434 |
33,282 |
(5,486 |
) |
- |
|
207,379 |
CFVO - Equity Investments(4) |
7,947 |
48,140 |
1,423 |
141 |
|
- |
|
57,650 |
CFVO - Total |
116,096 |
119,574 |
34,705 |
(5,345 |
) |
- |
|
265,029 |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2013 |
|
(unaudited) |
(in thousands of U.S. dollars) |
Teekay Offshore |
Teekay LNG |
Teekay Tankers |
Teekay Parent |
|
Consolidation Adjustments |
|
Teekay Corporation Consolidated |
|
|
|
|
|
|
|
|
|
Net revenues(1) |
201,196 |
96,716 |
42,040 |
122,218 |
|
(37,448 |
) |
424,722 |
|
|
|
|
|
|
|
|
|
Vessel operating expense |
79,115 |
25,316 |
23,054 |
59,979 |
|
- |
|
187,464 |
Time-charter hire expense |
14,777 |
- |
1,986 |
48,443 |
|
(37,754 |
) |
27,452 |
Depreciation and amortization |
45,349 |
24,143 |
11,864 |
21,138 |
|
- |
|
102,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CFVO - Consolidated(2)(3) |
94,053 |
65,570 |
13,199 |
(19,386 |
) |
(2,700 |
) |
150,736 |
CFVO - Equity Investments(4) |
- |
41,999 |
- |
254 |
|
- |
|
42,253 |
CFVO - Total |
94,053 |
107,569 |
13,199 |
(19,132 |
) |
(2,700 |
) |
192,989 |
|
(1) Net voyage revenues represents voyage
revenues less voyage expenses, which comprise all expenses relating
to certain voyages, including bunker fuel expenses, port fees,
cargo loading and unloading expenses, canal tolls, agency fees and
commissions. Net voyage revenues is a non-GAAP financial measure
used by certain investors to measure the financial performance of
shipping companies. Please see Appendix E for a
reconciliation of this non-GAAP measure as used in this release to
the most directly comparable GAAP financial measure. |
|
(2) Cash flow
from vessel operations (CFVO) represents income from
vessel operations before depreciation and amortization expense,
amortization of in-process revenue contracts, vessel write downs,
gains and losses on the sale of vessels, adjustments for direct
financing leases to a cash basis, and unrealized gains and losses
relating to derivatives, but includes realized gains and losses on
the settlement of foreign currency forward contracts. CFVO -
Consolidated represents CFVO from vessels that are consolidated on
the Company's financial statements. Cash flow from vessel
operations is a non-GAAP financial measure used by certain
investors to measure the financial performance of shipping
companies. Please refer to Appendix C and Appendix
E of this release for a reconciliation of this non-GAAP
measure as used in this release to the most directly comparable
GAAP financial measure. |
|
(3) Excludes CFVO relating to assets
acquired from Teekay Parent for the periods prior to their
acquisition by Teekay Offshore, Teekay LNG and Teekay Tankers,
respectively, as those results are included in the historical
results for Teekay Parent. |
|
(4) CFVO - Equity Investments represents
the Company's proportionate share of CFVO from its equity-accounted
vessels and other investments. Please refer to Appendix E
of this release for a reconciliation of this non-GAAP measure as
used in this release to the most directly comparable GAAP financial
measure. |
|
Teekay Offshore
Partners L.P.
Teekay Offshore is an international provider of marine
transportation, oil production and storage services to the offshore
oil industry through its fleet of 34 shuttle tankers (including two
chartered-in vessels), five floating, production, storage and
offloading (FPSO) units, six floating storage and offtake
(FSO) units (including one FSO unit under conversion),
four long-haul towing and anchor handling vessel newbuildings, four
conventional oil tankers and one HiLoad Dynamic Positioning
(DP) unit. Teekay Offshore's interests in its
directly-owned fleet (excluding the two chartered-in shuttle
tankers) range from 50 to 100 percent. Teekay Offshore also has the
right to participate in certain other FPSO and vessel opportunities
pursuant to the omnibus agreement with Teekay. Teekay Parent
currently owns a 29.3 percent interest in Teekay Offshore,
including the 2 percent sole general partner interest.
For the first quarter of 2014, Teekay Offshore's quarterly cash
distribution was $0.5384 per common unit. The cash distribution
received by Teekay Parent based on its common unit ownership and
general partnership interest in Teekay Offshore totaled $17.7
million for the first quarter of 2014, as detailed in Appendix
D to this release.
Including cash flows from equity-accounted vessels, Teekay
Offshore's total cash flow from vessel operations increased to
$116.1 million in the first quarter of 2014, from $94.1 million in
the same period of the prior year. The increase was primarily due
to the acquisitions of the Voyageur Spirit FPSO and a 50
percent interest in the Cidade de Itajai FPSO from Teekay
Corporation in the second quarter of 2013 and the commencement of
the time-charter contracts for the four newbuilding shuttle tankers
with the BG Group plc in June, August and November 2013 and January
2014. These increases were partially offset by the sale and lay-up
of older shuttle and conventional tankers during 2013 as their
related charter contracts expired or terminated.
In May 2014, Teekay Offshore entered into a letter of intent to
acquire Logitel Offshore Holdings Ltd. (Logitel), a
Norway-based company focused on the high-end floating accommodation
market. Logitel owns two floating accommodation units
(FAUs), which are based on the Sevan Marine ASA
(Sevan) cylindrical hull design, currently under
construction at the COSCO (Nantong) Shipyard (COSCO) in
China, and has options with COSCO to order up to an additional six
FAUs. The first committed FAU has secured a three-year, fixed-rate
charter contract, plus extension options, with Petroleo Brasileiro
SA (Petrobras) in Brazil and is scheduled for delivery in
early-2015. Teekay Offshore expects to secure a charter contract
for the second FAU prior to its scheduled delivery in late-2015.
The agreement with COSCO for the committed FAUs includes a
favorable payment schedule, with the majority of the purchase price
due upon delivery. Teekay Offshore intends to finance the Logitel
acquisition and the initial newbuilding payments through its
existing liquidity and expects to secure long-term debt financing
for the units prior to their scheduled deliveries. Teekay Offshore
expects the proposed acquisition to be finalized in the third
quarter of 2014.
In May 2014, Teekay Offshore entered into a letter of intent to
acquire Logitel Offshore Holdings Ltd. (Logitel), a Norway-based
company focused on the high-end floating accommodation market.
Logitel owns two floating accommodation units (FAUs), which are
based on the Sevan Marine ASA (Sevan) cylindrical hull design,
currently under construction at the COSCO (Nantong) Shipyard
(COSCO) in China, and has options with COSCO to order up to an
additional six FAUs. The first committed FAU has secured a
three-year, fixed-rate charter contract, plus extension options,
with Petroleo Brasileiro SA (Petrobras) in Brazil and is scheduled
for delivery in early-2015. Teekay Offshore expects to secure a
charter contract for the second FAU prior to its scheduled delivery
in late-2015. The agreement with COSCO for the committed FAUs
includes a favorable payment schedule, with the majority of the
purchase price due upon delivery. Teekay Offshore intends to
finance the Logitel acquisition and the initial newbuilding
payments through its existing liquidity and expects to secure
long-term debt financing for the units prior to their scheduled
deliveries. Teekay Offshore expects the proposed acquisition to be
finalized in the third quarter of 2014.
On August 27, 2013, repairs to the defective gas compressor on
the Voyageur Spirit FPSO were completed and the unit
achieved full production capacity. Since that time, Teekay Offshore
has been receiving full rate either directly from the charterer or
through the indemnification from Teekay Corporation. On April 4,
2014, Teekay Offshore received the certificate of final acceptance
from the charterer, which declared the unit on-hire effective from
February 22, 2014. During the first quarter of 2014 up to February
22, 2014 and from April 13, 2013 up to February 22, 2014, Teekay
Corporation indemnified Teekay Offshore for approximately $3.5
million and $38.4 million, respectively, relating to the
Voyageur Spirit FPSO off-hire.
In May 2014, Teekay Offshore secured a 10-year contract
extension with Apache Energy for the Dampier Spirit FSO
unit, which operates on the Stag oil field offshore Western
Australia. The FSO unit is expected to enter into drydock during
the second quarter of 2014 for capital upgrades with an expected
total cost of approximately $11 million.
Teekay LNG Partners
L.P.
Teekay LNG provides liquefied natural gas (LNG),
liquefied petroleum gas (LPG) and crude oil marine
transportation services generally under long-term, fixed-rate
charter contracts through its current fleet of 34 LNG carriers
(including one LNG regasification unit and five newbuildings under
construction), 27 LPG carriers (including 11 newbuildings under
construction) and nine conventional tankers. Teekay LNG's interests
in these vessels range from 33 to 100 percent. In addition, Teekay
LNG, through its 50/50 LPG joint venture with Exmar NV, charters-in
four LPG carriers. Teekay Parent currently owns a 35.3 percent
interest in Teekay LNG, including the 2 percent sole general
partner interest.
For the first quarter of 2014, Teekay LNG's quarterly cash
distribution was $0.6918 per common unit. The cash distribution
received by Teekay Parent based on its common unit ownership and
general partnership interest in Teekay LNG totaled $25.0 million
for the first quarter of 2014, as detailed in Appendix D
to this release.
Including cash flows from equity-accounted vessels, Teekay LNG's
total cash flow from vessel operations increased to $119.6 million
in the first quarter of 2014, from $107.6 million in the same
period of the prior year. The increase was primarily due to the
February 2013 acquisition of a 50 percent interest in Exmar LPG
BVBA, the delivery in late-2013 of two LNG carrier newbuildings
acquired from Awilco LNG ASA, and an increase in tanker rates
relating to two Suezmax tankers in the first quarter of 2014. These
increases were partially offset by the sale of two 2000-built
Suezmax conventional tankers, Tenerife Spirit and
Algeciras Spirit, in December 2013 and February 2014,
respectively.
In late-March 2014, Teekay LNG, through a new 50/50 joint
venture with a China-based LNG shipping company, signed a letter of
intent to provide six internationally-flagged icebreaker LNG
carriers for the Yamal LNG project, located on the Yamal Peninsula
in Northern Russia. The Yamal LNG project is a joint venture
between Russia-based Novatek (60 percent), France-based Total (20
percent) and China-based China National Petroleum Corporation
(CNPC) (20 percent), and will consist of three LNG trains
with a total capacity of 16.5 million metric tons of LNG per annum.
The project is currently scheduled to start-up in late-2017. Teekay
LNG and its joint venture partner are currently in the process of
negotiating contract terms, including the shipbuilding contracts
and related time-charters, and expects to finalize these agreements
during 2014.
In early April 2014, Exmar LPG BVBA took delivery of the first
of its 12 mid-size LPG carrier newbuildings.
Teekay Tankers
Ltd.
Teekay Tankers currently owns a fleet of 28 vessels, including
11 Aframax tankers, 10 Suezmax tankers, three Long Range 2
(LR2) product tankers, three Medium-Range (MR)
product tankers, and a 50 percent interest in a Very Large Crude
Carrier (VLCC) tanker. In addition, Teekay Tankers
time-charters in one Aframax tanker. Of the 29 vessels currently
operating in the Teekay Tankers fleet, 13 are employed on
fixed-rate time-charters, generally ranging from one to three years
in initial duration, with the remaining vessels trading in spot
tanker pools. Based on its current ownership of Teekay Tankers
Class A common stock and its ownership of 100 percent of the
outstanding Class B common stock, Teekay Parent currently owns a
25.1 percent economic interest in and has voting control of Teekay
Tankers.
On April 4, 2014, Teekay Tankers declared a first quarter 2014
dividend of $0.03 per share, which was paid on April 30, 2014 to
all shareholders of record on April 17, 2014. Based on its
ownership of Teekay Tankers Class A and Class B shares, the
dividend paid to Teekay Parent totaled $0.6 million for the first
quarter of 2014.
Including cash flows from equity-accounted vessels, Teekay
Tankers' total cash flow from vessel operations increased to $34.7
million in the first quarter of 2014, from $13.2 million in the
same period of the prior year. The increase was primarily due to
higher average realized spot tanker rates from its spot Suezmax,
Aframax and MR vessels and an increase in interest income
recognized from Teekay Tankers' investment in two mortgage
loans.
In late-March 2014, Teekay Tankers assumed full ownership of two
2010-built VLCC vessels, which previously secured Teekay Tankers'
investment in two term loans that were in default. In early-May
2014, Teekay Tankers sold the vessels to TIL for an aggregate
purchase price of $154 million.
In January 2014, Teekay Tankers and Teekay jointly created TIL,
which will seek to opportunistically acquire, operate, and sell
modern secondhand tankers to benefit from an expected recovery in
the currently cyclical low of the tanker market. TIL completed a
$250 million equity private placement in January 2014, in which
Teekay Tankers and Teekay each invested $25 million for a combined
20 percent ownership in the new company. In March 2014, TIL
completed a $175 million initial public offering and listed its
shares on the Oslo Stock Exchange, which reduced Teekay Tankers and
Teekay's cumulative ownership interest in TIL to 13.0 percent. To
date, TIL's fleet consists of 13 vessels, including four vessels
scheduled for delivery during the remainder of May and June
2014.
In April 2014, Teekay's and Teekay Tankers' Boards of Directors
agreed for Teekay Tankers to acquire a 50 percent ownership
interest in Teekay's conventional tanker commercial and technical
management operations (Teekay Operations) for approximately $15.6
million, to be paid in the form of Teekay Tankers Class B common
shares. Teekay Operations includes direct ownership in three
commercially managed tanker pools, which currently generate income
from commercially managing a fleet of 89 vessels, and direct
ownership in Teekay Marine Limited, which currently generates
income from technically managing a fleet of 51 vessels, including
vessels owned by the Company. The transaction is expected to be
completed during the second quarter of 2014.
Teekay Parent
In addition to its equity ownership interests in Teekay
Offshore, Teekay LNG, Teekay Tankers and TIL, Teekay Parent
directly owns several vessels including four FPSO units and one
VLCC vessel. In the first quarter of 2014, Teekay Parent sold four
Suezmax tankers to TIL. As at May 1, 2014, Teekay Parent also had
six chartered-in conventional tankers (including four Aframax
tankers owned by Teekay Offshore), two chartered-in LNG carriers
owned by Teekay LNG and two chartered-in FSOs owned by Teekay
Offshore.
For the first quarter of 2014, Teekay Parent generated negative
cash flow from vessel operations of $5.3 million, compared to
negative cash flow from operations of $19.1 million in the same
period of the prior year. The reduction in negative cash flow is
primarily a result of the re-delivery of several in-chartered
tankers over the past year, higher interest income from a term loan
investment and higher spot tanker rates, partially offset by the
completion of the Petrojarl I FPSO time-charter in April
2013.
In April 2014, the Voyageur Spirit FPSO received its
certificate of final acceptance from the charterer and commenced
full operations under its charter contract effective from February
22, 2014, completing Teekay Parent's indemnification obligation
related to the sale of this FPSO unit to Teekay Offshore in May
2013.
Fleet List
The following table summarizes Teekay's consolidated fleet of
166 vessels as at May 9, 2014, including chartered-in vessels and
vessels under construction but excluding vessels managed for third
parties:
|
Number of Vessels(1) |
|
Owned Vessels |
Chartered-in Vessels |
Newbuildings / Conversions |
Total |
Teekay Parent Fleet(2)(3) |
|
|
|
|
|
Aframax Tankers (4) |
- |
2 |
- |
2 |
|
VLCC Tanker (5) |
1 |
- |
- |
1 |
|
MR Product Tanker |
- |
1 |
- |
1 |
|
FPSO Units |
4 |
- |
1 |
5 |
|
Total Teekay Parent Fleet |
5 |
3 |
1 |
9 |
|
|
|
|
|
Teekay Offshore Fleet |
47 |
2 |
5 |
54 |
|
|
|
|
|
Teekay LNG Fleet |
54 |
4 |
16 |
74 |
|
|
|
|
|
Teekay Tankers Fleet |
28 |
1 |
- |
29 |
|
|
|
|
|
Total Teekay Consolidated Fleet |
134 |
10 |
22 |
166 |
|
(1) Ownership interests in these vessels range from 33 percent
to 100 percent. |
|
(2) Excludes two LNG carriers chartered-in from Teekay
LNG. |
|
(3) Excludes two shuttle tankers and two FSO units chartered-in
from Teekay Offshore. |
|
(4) Excludes four Aframax tankers chartered-in from Teekay
Offshore. |
|
(5) In late-March 2014, Teekay Parent exercised its rights
under the security documents to realize amounts it was owed under
its investment in a term loan and assumed full ownership of the
2011-built VLCC vessel which previously secured the investment in
the term loan. The vessel is a potential FPSO conversion
candidate. |
|
Liquidity
As at March 31, 2014, the Company had consolidated liquidity of
approximately $1.3 billion (consisting of $584.0 million cash and
cash equivalents and $714.2 million of undrawn revolving credit
facilities), of which $384.2 million of liquidity (consisting of
$239.0 million cash and cash equivalents and $145.2 million of
undrawn revolving credit facilities) is attributable to Teekay
Parent.
Availability of 2013
Annual Report
The Company filed its 2013 Annual Report on Form 20-F with the
U.S. Securities and Exchange Commission (SEC) on April 28,
2014. Copies of this report are available on Teekay Corporation's
website, under "SEC Filings", at www.teekay.com. Shareholders may
request a printed copy of this Annual Report, including the
complete audited financial statements, free of charge by contacting
Teekay Corporation's Investor Relations.
Conference
Call
The Company plans to host a conference call on Thursday, May 15,
2014 at 11:00 a.m. (ET) to discuss its results for the first
quarter of 2014. An accompanying investor presentation will be
available on Teekay's website at www.teekay.com prior to the start
of the call. All shareholders and interested parties are invited to
listen to the live conference call by choosing from the following
options:
- By dialing (866) 322-2356 or
(416) 640-3405, if
outside North America, and quoting conference ID code 7133169.
- 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 30 days).
The conference call will be recorded and available until
Thursday, May 22, 2014. This recording can be accessed following
the live call by dialing (888) 203-1112 or
(647) 436-0148, if
outside North America, and entering access code 7133169.
About Teekay
Teekay Corporation is an operational leader and project
developer in the marine midstream space. Through its general
partnership interests in two master limited partnerships, Teekay
LNG Partners L.P. (NYSE:TGP) and Teekay Offshore Partners L.P.
(NYSE:TOO), its controlling ownership of Teekay Tankers Ltd.
(NYSE:TNK), and its fleet of directly-owned vessels, Teekay is
responsible for managing and operating consolidated assets of over
$11.5 billion, comprised of 166 liquefied gas, offshore, and
conventional tanker assets. With offices in 15 countries and
approximately 6,700 seagoing and shore-based employees, Teekay
provides a comprehensive set of marine services to the world's
leading oil and gas companies, and its reputation for safety,
quality and innovation has earned it a position with its customers
as The Marine Midstream Company.
Teekay's common stock is listed on the New York Stock Exchange
where it trades under the symbol "TK".
|
|
TEEKAY CORPORATION |
|
SUMMARY CONSOLIDATED STATEMENTS OF INCOME (LOSS) |
|
(in thousands of U.S. dollars, except share and per
share data) |
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
2014 |
|
2013 |
|
2013 |
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
|
|
REVENUES(1)(2) |
506,494 |
|
493,546 |
|
451,037 |
|
|
|
|
|
|
|
|
OPERATING EXPENSES |
|
|
|
|
|
|
Voyage expenses (2) |
35,012 |
|
31,727 |
|
26,315 |
|
Vessel operating expenses (1)(2) |
201,186 |
|
205,131 |
|
187,464 |
|
Time-charter hire expense |
16,292 |
|
24,164 |
|
27,452 |
|
Depreciation and amortization |
103,458 |
|
109,709 |
|
102,494 |
|
General and administrative (2) |
37,878 |
|
34,360 |
|
39,271 |
|
Asset impairments and provisions (3) |
- |
|
85,300 |
|
3,165 |
|
Loss on sale of vessels and equipment |
162 |
|
40 |
|
32 |
|
Restructuring charges |
639 |
|
2,617 |
|
2,054 |
|
|
394,627 |
|
493,048 |
|
388,247 |
|
Income from vessel operations |
111,867 |
|
498 |
|
62,790 |
|
OTHER ITEMS |
|
|
|
|
|
|
Interest expense (2) |
(49,333 |
) |
(48,382 |
) |
(42,510 |
) |
Interest income (2) |
1,783 |
|
5,129 |
|
1,018 |
|
Realized and unrealized (loss) gain on derivative
instruments (2) |
(47,248 |
) |
2,875 |
|
(13,789 |
) |
Equity income (4) |
27,494 |
|
35,098 |
|
27,315 |
|
Income tax (expense) recovery |
(2,798 |
) |
839 |
|
(2,500 |
) |
Foreign exchange (loss) gain |
(894 |
) |
(4,334 |
) |
2,191 |
|
Other income - net |
8,251 |
|
1,165 |
|
5,240 |
|
Net income (loss) |
49,122 |
|
(7,112 |
) |
39,755 |
|
Less: Net income attributable to non-controlling
interests |
(49,610 |
) |
(63,753 |
) |
(45,891 |
) |
Net loss attributable to stockholders of Teekay
Corporation |
(488 |
) |
(70,865 |
) |
(6,136 |
) |
Loss per common share of Teekay |
|
|
|
|
|
|
|
- Basic |
($0.01 |
) |
($1.00 |
) |
($0.09 |
) |
|
- Diluted |
($0.01 |
) |
($1.00 |
) |
($0.09 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares
outstanding |
|
|
|
|
|
|
|
- Basic |
71,328,577 |
|
70,781,695 |
|
69,888,279 |
|
|
- Diluted |
71,328,577 |
|
70,781,695 |
|
69,888,279 |
|
|
(1) The costs of
business development and engineering studies relating to North Sea
FPSO and FSO projects that the Company is pursuing are
substantially reimbursable from customers upon completion. As a
result, $2.8 million of revenues and $2.6 million of costs were
recognized in the three months ended March 31, 2013 upon completion
of one FPSO study. |
|
(2) Realized and
unrealized gains (losses) related to derivative instruments that
are not designated as hedges for accounting purposes are included
as a separate line item in the statements of income (loss). The
realized (losses) gains relate to the amounts the Company actually
received or 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 |
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
2014 |
|
2013 |
|
2013 |
|
Realized (losses) gains relating to: |
|
|
|
|
|
|
|
Interest rate swaps |
(29,490 |
) |
(30,967 |
) |
(30,352 |
) |
|
Termination of interest rate swap agreement |
1,000 |
|
- |
|
- |
|
|
Foreign currency forward contracts |
(1,285 |
) |
(694 |
) |
421 |
|
|
(29,775 |
) |
(31,661 |
) |
(29,931 |
) |
Unrealized (losses) gains relating to: |
|
|
|
|
|
|
|
Interest rate swaps |
(25,398 |
) |
34,142 |
|
19,204 |
|
|
Foreign currency forward contracts |
3,051 |
|
394 |
|
(3,062 |
) |
|
Stock purchase warrants in TIL |
4,874 |
|
- |
|
- |
|
|
(17,473 |
) |
34,536 |
|
16,142 |
|
|
|
|
|
|
|
|
Total realized and unrealized (losses) gains on
non-designated derivative instruments |
(47,248 |
) |
2,875 |
|
(13,789 |
) |
|
(3) The Company
recognized asset impairments and provisions of $85.3 million for
the three months ended December 31, 2013 related to impairment
charges on the four conventional tankers sold to TIL and two
shuttle tankers which Teekay Offshore owns through a 67
percent-owned subsidiary. The shuttle tanker impairments were the
result of the re-contracting of one of the vessels at lower rates
than expected during the third quarter of 2013, and the
cancellation of a short-term contract for one shuttle tanker in
September 2013. The amount also includes a provision for an FPSO
front-end engineering and design study (FEED) receivable
potentially not collectible, and the reversal of loss provisions
relating to investment in term loans and advances to a joint
venture partner's parent entity. Asset impairments and provisions
for the three months ended March 31, 2013 of $3.2 million relates
to the loss provision on investment in term loans. |
|
(4) The
Company's proportionate share of items within equity income as
identified in Appendix A of this release, is as detailed
in the table below. By excluding these items from equity income,
the Company believes that the resulting adjusted equity income can
be used to evaluate the financial performance of the Company's
equity accounted investments. The adjusted equity income is a
non-GAAP measure. |
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
March 31, |
|
|
2014 |
|
2013 |
|
2013 |
|
|
|
|
|
|
|
|
Equity income |
27,494 |
|
35,098 |
|
27,315 |
|
Proportionate share of unrealized losses (gains) on derivative
instruments |
909 |
|
(6,607 |
) |
(5,373 |
) |
Dilution gain on share issuance by TIL |
(4,108 |
) |
- |
|
- |
|
Other (i) |
966 |
|
- |
|
- |
|
Equity income adjusted for items in Appendix A |
25,261 |
|
28,491 |
|
21,942 |
|
|
(i) Includes loss on sale of vessel in Exmar LPG BVBA joint
venture. |
|
TEEKAY CORPORATION |
SUMMARY CONSOLIDATED BALANCE SHEETS |
(in thousands of U.S. dollars) |
|
As at March 31, |
As at December 31, |
|
2014 |
2013 |
|
(unaudited) |
(unaudited) |
ASSETS |
|
|
Cash and cash equivalents |
583,992 |
614,660 |
Other current assets |
605,414 |
585,752 |
Restricted cash - current |
4,236 |
4,748 |
Restricted cash - long-term |
498,898 |
497,984 |
Assets held for sale(1) |
144,000 |
176,247 |
Vessels and equipment |
6,590,189 |
6,584,632 |
Advances on newbuilding contracts/conversions |
1,008,519 |
766,512 |
Derivative assets |
128,692 |
92,837 |
Investment in equity accounted investees |
767,377 |
727,328 |
Investment in term loans |
- |
211,579 |
Investment in direct financing leases |
722,034 |
727,262 |
Other assets |
310,011 |
291,723 |
Intangible assets |
104,453 |
107,898 |
Goodwill |
168,572 |
166,539 |
Total Assets |
11,636,387 |
11,555,701 |
LIABILITIES AND EQUITY |
|
|
Accounts payable and accrued liabilities |
698,308 |
565,239 |
Liabilities associated with assets held for
sale(1) |
- |
168,007 |
Current portion of long-term debt |
1,027,626 |
1,028,093 |
Long-term debt |
5,775,799 |
5,679,706 |
Derivative liabilities |
476,735 |
443,569 |
In process revenue contracts |
169,852 |
179,852 |
Other long-term liabilities |
292,273 |
271,621 |
Redeemable non-controlling interest |
15,911 |
16,564 |
Equity: |
|
|
|
Non-controlling interests |
2,034,379 |
2,071,262 |
|
Stockholders of Teekay |
1,145,504 |
1,131,788 |
Total Liabilities and Equity |
11,636,387 |
11,555,701 |
|
(1) In connection with the 2014 sale of four conventional
tanker owning companies to a newly created company, TIL, the
vessels and equipment, long-term debt and working capital related
to the four vessel-owning companies were classified as "Assets held
for sale" and "Liabilities associated with assets held for sale" as
at December 31, 2013. |
|
TEEKAY CORPORATION |
|
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
(in thousands of U.S. dollars) |
|
|
Three Months Ended |
|
|
March 31 |
|
|
2014 |
|
2013 |
|
|
(unaudited) |
|
(unaudited) |
|
Cash
and cash equivalents provided by (used for) |
|
|
|
|
OPERATING ACTIVITIES |
|
|
|
|
Net operating cash flow |
103,737 |
|
(33,707 |
) |
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
Net
proceeds from long-term debt |
306,085 |
|
544,970 |
|
Scheduled repayments of long-term debt |
(84,451 |
) |
(122,736 |
) |
Prepayments of long-term debt |
(130,000 |
) |
(250,000 |
) |
Increase in restricted cash |
(244 |
) |
(1,370 |
) |
Equity contribution from joint venture partner |
6,500 |
|
- |
|
Issuance of common stock upon exercise of stock options |
34,720 |
|
- |
|
Cash
dividends paid |
(23,467 |
) |
(22,971 |
) |
Distribution from subsidiaries to non-controlling interests |
(96,125 |
) |
(61,491 |
) |
Other |
- |
|
4,312 |
|
Net financing cash flow |
13,018 |
|
90,714 |
|
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
|
Expenditures for vessels and equipment |
(106,299 |
) |
(72,196 |
) |
Proceeds from sale of vessels and equipment |
- |
|
22,364 |
|
Repayment of term loans |
4,814 |
|
- |
|
Advances from (to) joint ventures and joint venture partners |
1,478 |
|
(36,196 |
) |
Investment in equity accounted investments |
(50,322 |
) |
(134,109 |
) |
Direct financing lease payments received and other |
2,906 |
|
3,286 |
|
Net investing cash flow |
(147,423 |
) |
(216,851 |
) |
|
|
|
|
|
Decrease in cash and cash equivalents |
(30,668 |
) |
(159,844 |
) |
Cash and cash equivalents, beginning of the period |
614,660 |
|
639,491 |
|
Cash and cash equivalents, end of the period |
583,992 |
|
479,647 |
|
|
|
TEEKAY CORPORATION |
APPENDIX A - SPECIFIC ITEMS AFFECTING NET INCOME |
(in thousands of U.S. dollars, except per share data) |
Set forth below is a reconciliation of the Company's unaudited
adjusted net income (loss) attributable to stockholders of Teekay,
a non-GAAP financial measure, to net income (loss) attributable to
stockholders of Teekay as determined in accordance with GAAP. The
Company believes that, in addition to conventional measures
prepared in accordance with GAAP, certain investors use this
information to evaluate the Company's financial performance. The
items below are also typically excluded by securities analysts in
their published estimates of the Company's financial results.
Adjusted net income (loss) attributable to the stockholders of
Teekay is intended to provide additional information and should not
be considered a substitute for measures of performance prepared in
accordance with GAAP.
|
Three Months Ended |
Three Months Ended |
|
March 31, 2014 |
March 31, 2013 |
|
(unaudited) |
(unaudited) |
|
|
$
Per |
|
$
Per |
|
$ |
Share(1) |
$ |
Share(1) |
Net income - GAAP basis |
49,122 |
|
39,755 |
|
Adjust for: Net income attributable to |
|
|
|
|
non-controlling interests |
(49,610) |
|
(45,891) |
|
Net loss attributable to stockholders of Teekay |
(488) |
(0.01) |
(6,136) |
(0.09) |
Add (subtract) specific items affecting net loss: |
|
|
|
|
|
Unrealized losses (gains) from derivative instruments (2) |
18,382 |
0.26 |
(20,821) |
(0.30) |
|
Foreign exchange loss (3) |
749 |
0.01 |
333 |
- |
|
Net loss on sale of vessels and loan loss provision |
162 |
- |
3,197 |
0.05 |
|
Restructuring charges (4) |
639 |
0.01 |
2,054 |
0.03 |
|
Realized gain on termination of interest rate swap |
(1,000) |
(0.01) |
- |
- |
|
Dilution gain on share issuance by TIL (5) |
(4,108) |
(0.06) |
- |
- |
|
Other (6) |
(1,587) |
(0.01) |
2,403 |
0.04 |
|
Non-controlling interests' share of items above (7) |
(9,273) |
(0.13) |
7,287 |
0.10 |
Total adjustments |
3,964 |
0.06 |
(5,547) |
(0.08) |
Adjusted net income (loss) attributable to stockholders
of Teekay |
3,476 |
0.05 |
(11,683) |
(0.17) |
|
(1) Fully diluted per share amounts. |
|
(2) Reflects the unrealized gains or losses relating to the
change in the mark-to-market value of derivative instruments that
are not designated as hedges for accounting purposes, including
those included in equity income from joint ventures, and the
ineffective portion of foreign currency forward contracts
designated as hedges for accounting purposes. |
|
(3) Foreign currency exchange gains and losses primarily relate
to the Company's debt denominated in Euros and Norwegian Kroner in
addition to the unrealized gains and losses on cross currency swaps
used to hedge the principal and interest on the Norwegian Kroner
bonds. Nearly all of the Company's foreign currency exchange gains
and losses are unrealized. |
|
(4) Restructuring charges primarily relate to the
reorganization of the Company's marine operations and termination
of crew upon reflagging a shuttle tanker in Teekay Offshore. |
|
(5) The Company recognized a gain from the share issuance
completed as part of TIL's initial public offering in March
2014. |
|
(6) Other primarily relates to an external transaction fee in
connection with Teekay Offshore's acquisition of ALP,
pre-operational costs for an FPSO unit nearing completion, and an
initial unrealized gain on the TIL stock purchase warrants. |
|
(7) If any of the specific items affecting net (loss) income
originate from a consolidated non-wholly-owned subsidiary, the net
(income) loss attributable to non-controlling interests of these
subsidiaries is recalculated without these specific items affecting
net (income) loss. The amount identified as "Non-controlling
interests' share of items above" in the table above is the
cumulative change to the Company's net (income) loss attributable
to non-controlling interests by excluding the specific items
affecting net (loss) income. |
|
TEEKAY CORPORATION |
APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION |
SUMMARY BALANCE SHEET AS AT MARCH 31, 2014 |
(in thousands of U.S. dollars) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
Teekay |
Teekay |
Teekay |
Teekay |
|
Consolidation |
|
|
|
Offshore |
LNG |
Tankers |
Parent |
|
Adjustments |
|
Total |
ASSETS |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
222,990 |
94,824 |
27,138 |
239,040 |
|
- |
|
583,992 |
Other current assets |
208,930 |
27,079 |
32,950 |
336,455 |
|
- |
|
605,414 |
Restricted cash |
- |
498,208 |
- |
4,926 |
|
- |
|
503,134 |
Assets held for sale |
- |
- |
144,000 |
- |
|
- |
|
144,000 |
Vessels and equipment |
3,067,880 |
1,780,237 |
848,988 |
893,084 |
|
- |
|
6,590,189 |
Advances on newbuilding contracts |
46,369 |
98,055 |
- |
864,095 |
|
- |
|
1,008,519 |
Derivative assets |
13,714 |
102,162 |
5,857 |
6,959 |
|
- |
|
128,692 |
Investment in equity accounted investees |
55,824 |
606,502 |
35,960 |
78,791 |
|
(9,700 |
) |
767,377 |
Investment in direct financing leases |
26,135 |
695,899 |
- |
- |
|
- |
|
722,034 |
Other assets |
45,288 |
116,464 |
13,438 |
134,821 |
|
- |
|
310,011 |
Advances to affiliates |
19,675 |
3,606 |
25,890 |
(49,171 |
) |
- |
|
- |
Equity investment in subsidiaries |
- |
- |
- |
460,589 |
|
(460,589 |
) |
- |
Intangibles and goodwill |
138,574 |
130,044 |
- |
4,407 |
|
- |
|
273,025 |
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
3,845,379 |
4,153,080 |
1,134,221 |
2,973,996 |
|
(470,289 |
) |
11,636,387 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
177,711 |
58,819 |
20,624 |
441,154 |
|
- |
|
698,308 |
Advances from affiliates |
80,183 |
25,154 |
8,377 |
(113,714 |
) |
- |
|
- |
Current portion of long-term debt |
748,055 |
191,196 |
20,367 |
68,008 |
|
- |
|
1,027,626 |
Long-term debt |
1,730,873 |
2,134,425 |
745,174 |
1,165,327 |
|
- |
|
5,775,799 |
Derivative liabilities |
186,467 |
226,080 |
23,615 |
40,573 |
|
- |
|
476,735 |
In-process revenue contracts |
98,151 |
4,495 |
- |
67,206 |
|
- |
|
169,852 |
Other long-term liabilities |
23,480 |
105,635 |
5,405 |
157,753 |
|
- |
|
292,273 |
Redeemable non-controlling interest |
15,911 |
- |
- |
- |
|
- |
|
15,911 |
Equity: |
|
|
|
|
|
|
|
|
|
Non-controlling interests (1) |
39,519 |
36,274 |
- |
2,185 |
|
1,956,401 |
|
2,034,379 |
|
Equity attributable to stockholders/unitholders of publicly-listed
entities |
745,029 |
1,371,002 |
310,659 |
1,145,504 |
|
(2,426,690 |
) |
1,145,504 |
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
3,845,379 |
4,153,080 |
1,134,221 |
2,973,996 |
|
(470,289 |
) |
11,636,387 |
|
|
|
|
|
|
|
|
|
NET DEBT(2) |
2,255,938 |
1,732,589 |
738,403 |
989,369 |
|
- |
|
5,716,299 |
|
(1)
Non-controlling interests in the Teekay Offshore and Teekay LNG
columns represent the respective joint venture partners' share of
joint venture net assets. Non-controlling interest in the
Consolidation Adjustments column represents the public's share of
the net assets of Teekay's publicly-traded subsidiaries. |
(2) Net debt
represents current and long-term debt less cash and, if applicable,
current and long-term restricted cash. |
|
TEEKAY CORPORATION |
|
APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION |
|
SUMMARY STATEMENT OF INCOME (LOSS) FOR THE THREE
MONTHS ENDED MARCH 31, 2014 |
|
(in thousands of U.S. dollars) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Teekay |
|
Teekay |
|
Teekay |
|
Teekay |
|
Consolidation |
|
|
|
|
Offshore |
|
LNG |
|
Tankers |
|
Parent |
|
Adjustments |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
259,234 |
|
101,490 |
|
61,759 |
|
112,505 |
|
(28,494 |
) |
506,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voyage expenses |
33,454 |
|
1,333 |
|
1,439 |
|
756 |
|
(1,970 |
) |
35,012 |
|
Vessel operating expenses |
88,130 |
|
24,256 |
|
22,794 |
|
66,006 |
|
- |
|
201,186 |
|
Time-charter hire expense |
11,412 |
|
- |
|
1,052 |
|
31,276 |
|
(27,448 |
) |
16,292 |
|
Depreciation and amortization |
48,488 |
|
24,110 |
|
12,502 |
|
18,358 |
|
- |
|
103,458 |
|
General and administrative |
14,849 |
|
6,408 |
|
3,192 |
|
12,505 |
|
924 |
|
37,878 |
|
Loss on sale of vessels and equipment |
- |
|
- |
|
- |
|
162 |
|
- |
|
162 |
|
Restructuring charges |
559 |
|
- |
|
- |
|
80 |
|
- |
|
639 |
|
Total operating expenses |
196,892 |
|
56,107 |
|
40,979 |
|
129,143 |
|
(28,494 |
) |
394,627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from vessel operations |
62,342 |
|
45,383 |
|
20,780 |
|
(16,638 |
) |
- |
|
111,867 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
(18,920 |
) |
(14,831 |
) |
(2,347 |
) |
(13,235 |
) |
- |
|
(49,333 |
) |
Interest income |
177 |
|
648 |
|
138 |
|
820 |
|
- |
|
1,783 |
|
Realized and unrealized (losses) gains on derivative
instruments |
(36,632 |
) |
(7,521 |
) |
1,644 |
|
(4,739 |
) |
- |
|
(47,248 |
) |
Income tax expense |
(1,263 |
) |
(395 |
) |
(55 |
) |
(1,085 |
) |
- |
|
(2,798 |
) |
Equity income (loss) |
3,703 |
|
20,373 |
|
2,594 |
|
824 |
|
- |
|
27,494 |
|
Equity in earnings of subsidiaries (1) |
- |
|
- |
|
- |
|
28,982 |
|
(28,982 |
) |
- |
|
Foreign exchange (loss) gain |
(775 |
) |
(779 |
) |
21 |
|
639 |
|
- |
|
(894 |
) |
Other - net |
390 |
|
218 |
|
3,657 |
|
3,986 |
|
- |
|
8,251 |
|
Net income (loss) |
9,022 |
|
43,096 |
|
26,432 |
|
(446 |
) |
(28,982 |
) |
49,122 |
|
Less: Net (income) attributable to non-controlling interests
(2) |
(1,679 |
) |
(4,850 |
) |
- |
|
(42 |
) |
(43,039 |
) |
(49,610 |
) |
Net income (loss) attributable to stockholders/unitholders of
publicly-listed entities |
7,343 |
|
38,246 |
|
26,432 |
|
(488 |
) |
(72,021 |
) |
(488 |
) |
CFVO - Consolidated(3)(4) |
108,149 |
|
71,434 |
|
33,282 |
|
(5,486 |
) |
- |
|
207,379 |
|
CFVO - Equity Investments(5) |
7,947 |
|
48,140 |
|
1,423 |
|
141 |
|
- |
|
57,650 |
|
CFVO - Total |
116,096 |
|
119,574 |
|
34,705 |
|
(5,345 |
) |
- |
|
265,029 |
|
|
(1) Teekay
Corporation's proportionate share of the net earnings of its
publicly-traded subsidiaries. |
|
(2) Net (income)
loss attributable to non-controlling interests in the Teekay
Offshore and Teekay LNG columns represent the joint venture
partners' share of the net income (loss) of their respective joint
ventures. Net (income) loss attributable to non-controlling
interest in the Consolidation Adjustments column represents the
public's share of the net income (loss) of Teekay's publicly-traded
subsidiaries. |
|
(3) CFVO
represents income from vessel operations before depreciation and
amortization expense, amortization of in-process revenue contracts,
vessel write downs, gains and losses on the sale of vessels,
adjustments for direct financing leases to a cash basis, and
unrealized gains and losses relating to derivatives, but includes
realized gains and losses on the settlement of foreign currency
forward contracts. CFVO - Consolidated represents CFVO from vessels
that are consolidated on the Company's financial statements. Cash
flow from vessel operations is a non-GAAP financial measure used by
certain investors to measure the financial performance of shipping
companies. Please see Appendix C and Appendix E
to this release for a reconciliation of this non-GAAP measure as
used in this release to the most directly comparable GAAP financial
measure. |
|
(4) In addition
to the CFVO generated by its directly owned and chartered-in
assets, Teekay Parent also receives cash dividends and
distributions from its publicly-traded subsidiaries. For the three
months ended March 31, 2014, Teekay Parent received cash dividends
and distributions from these subsidiaries totaling $43.3 million.
The dividends and distributions received by Teekay Parent include,
among others, those made with respect to its general partner
interests in Teekay Offshore and Teekay LNG. Please refer to
Appendix D to this release for further details. |
|
(5) CFVO -
Equity Investments represents the Company's proportionate share of
CFVO from its equity accounted vessels and other investments.
Please see Appendix C and Appendix E to this
release for reconciliations of this non-GAAP measure as used in
this release to the most directly comparable GAAP financial
measure. |
|
|
TEEKAY CORPORATION |
APPENDIX C - SUPPLEMENTAL FINANCIAL INFORMATION |
TEEKAY PARENT SUMMARY OPERATING RESULTS |
FOR THE THREE MONTHS ENDED MARCH 31, 2014 |
(in thousands of U.S. dollars) |
(unaudited) |
Set forth below is a reconciliation of unaudited cash flow from
vessel operations, a non-GAAP financial measure, to (loss) income
from vessel operations as determined in accordance with GAAP, for
Teekay Parent's primary operating segments. The Company believes
that, in addition to conventional measures prepared in accordance
with GAAP, certain investors use this information to evaluate
Teekay Parent's financial performance. Disaggregated cash flow from
vessel operations for Teekay Parent, as provided below, is intended
to provide additional information and should not be considered a
substitute for measures of performance prepared in accordance with
GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
Owned |
|
In-Chartered |
|
|
|
|
|
Teekay |
|
|
Conventional |
|
Conventional |
|
|
|
|
|
Parent |
|
|
Tankers |
|
Tankers |
|
FPSOs |
|
Other (1) |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
7,965 |
|
16,806 |
|
59,383 |
|
28,351 |
|
112,505 |
|
|
|
|
|
|
|
|
|
|
|
|
Voyage expenses |
473 |
|
272 |
|
- |
|
11 |
|
756 |
|
Vessel operating expenses |
2,353 |
|
5,406 |
|
53,091 |
|
5,155 |
|
66,006 |
|
Time-charter hire expense |
- |
|
13,212 |
|
7,366 |
|
10,698 |
|
31,276 |
|
Depreciation and amortization |
80 |
|
- |
|
18,335 |
|
(57 |
) |
18,358 |
|
General and administrative |
387 |
|
735 |
|
5,725 |
|
5,658 |
|
12,505 |
|
Loss on sale of vessels and equipment (2) |
162 |
|
- |
|
- |
|
- |
|
162 |
|
Restructuring charges |
- |
|
- |
|
- |
|
80 |
|
80 |
|
Total operating expenses |
3,455 |
|
19,625 |
|
84,517 |
|
21,545 |
|
129,143 |
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from vessel operations |
4,510 |
|
(2,819 |
) |
(25,135 |
) |
6,807 |
|
(16,638 |
) |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of income (loss) from vessel operations
to cash flow from vessel operations |
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from vessel operations |
4,510 |
|
(2,819 |
) |
(25,135 |
) |
6,807 |
|
(16,638 |
) |
Depreciation and amortization |
80 |
|
- |
|
18,335 |
|
(57 |
) |
18,358 |
|
Loss on sale of vessels and equipment (2) |
162 |
|
- |
|
- |
|
- |
|
162 |
|
Amortization of in process revenue contracts and other |
- |
|
- |
|
(6,580 |
) |
- |
|
(6,580 |
) |
Realized gains from the settlements of non-designated derivative
instruments |
(262 |
) |
- |
|
(526 |
) |
- |
|
(788 |
) |
CFVO - Consolidated(3)(4) |
4,490 |
|
(2,819 |
) |
(13,906 |
) |
6,750 |
|
(5,486 |
) |
CFVO - Equity(5) |
846 |
|
- |
|
(851 |
) |
146 |
|
141 |
|
CFVO - Total |
5,337 |
|
(2,819 |
) |
(14,757 |
) |
6,896 |
|
(5,345 |
) |
|
(1) Includes results of two chartered-in LNG
carriers owned by Teekay LNG and one chartered-in FSO unit owned by
Teekay Offshore, and interest income received from an investment in
a term loan. |
|
(2) Teekay Parent recognized a loss relating
to four conventional tankers in connection with the sale of these
vessels to TIL. |
|
(3) CFVO
represents income from vessel operations before depreciation and
amortization expense, amortization of in-process revenue contracts,
vessel write downs, gains and losses on the sale of vessels,
adjustments for direct financing leases to a cash basis, and
unrealized gains and losses relating to derivatives, but includes
realized gains and losses on the settlement of foreign currency
forward contracts. CFVO - Consolidated represents Teekay Parent's
CFVO from vessels that are consolidated on the Company's financial
statements. Cash flow from vessel operations is a non-GAAP
financial measure used by certain investors to measure the
financial performance of shipping companies. Please see
Appendix E to this release for a reconciliation of this
non-GAAP measure as used in this release to the most directly
comparable GAAP financial measure. |
|
(4) In addition
to the CFVO generated by its directly owned and chartered-in
assets, Teekay Parent also receives cash dividends and
distributions from its publicly-traded subsidiaries. For the three
months ended March 31, 2014, Teekay Parent received cash dividends
and distributions from these subsidiaries totaling $43.3 million.
The dividends and distributions received by Teekay Parent include,
among others, those made with respect to its general partner
interests in Teekay Offshore and Teekay LNG. Please refer to
Appendix D to this release for further details. |
|
(5) CFVO - Equity Investments represents
Teekay Parent's proportionate share of CFVO from its equity
accounted vessels and other investments. Please see Appendix
E to this release for a reconciliation of this non-GAAP
measure as used in this release to the most directly comparable
GAAP financial measure. |
|
|
TEEKAY CORPORATION |
APPENDIX D - SUPPLEMENTAL FINANCIAL INFORMATION |
TEEKAY PARENT FREE CASH FLOW |
(in thousands of U.S. dollars) |
(unaudited) |
Set forth below is an unaudited calculation of Teekay Parent
free cash flow for the three months ended March 31, 2014, December
31, 2013, September 30, 2013, June 30, 2013, and March 31, 2013.
The Company defines free cash flow, a non-GAAP financial measure,
as cash flow from vessel operations attributed to its
directly-owned and in-chartered assets, distributions received as a
result of ownership interests in its publicly-traded subsidiaries
(Teekay LNG, Teekay Offshore, and Teekay Tankers), net of interest
expense and drydock expenditures in the respective period. For a
reconciliation of Teekay Parent cash flow from vessel operations
for the three months ended March 31, 2014 to the most directly
comparable financial measure under GAAP, please refer to
Appendix C to this release. For a reconciliation of Teekay
Parent cash flow from vessel operations to the most directly
comparable GAAP financial measure for the three months ended
December 31, 2013, September 30, 2013, June 30, 2013, and March 31,
2013, please see Appendix E to this release. Teekay Parent
free cash flow, as provided below, is intended to provide
additional information and should not be considered a substitute
for measures of performance prepared in accordance with GAAP.
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|
2014 |
|
2013 |
|
2013 |
|
2013 |
|
2013 |
|
Teekay Parent cash flow from vessel operations (1) |
|
|
|
|
|
|
|
|
|
|
|
Owned Conventional Tankers |
4,490 |
|
232 |
|
883 |
|
(380 |
) |
99 |
|
|
In-Chartered Conventional Tankers (2) |
(2,819 |
) |
(9,292 |
) |
(8,672 |
) |
(18,436 |
) |
(20,008 |
) |
|
FPSOs |
(13,906 |
) |
(4,932 |
) |
(24,214 |
) |
(13,407 |
) |
5,500 |
|
|
Other |
6,750 |
|
(2,959 |
) |
(2,528 |
) |
(3,337 |
) |
(4,977 |
) |
|
Total |
(5,486 |
) |
(16,951 |
) |
(34,531 |
) |
(35,560 |
) |
(19,386 |
) |
Daughter company distributions to Teekay Parent
(3) |
|
|
|
|
|
|
|
|
|
|
|
Common shares/units (4) |
|
|
|
|
|
|
|
|
|
|
|
Teekay LNG Partners |
17,439 |
|
17,439 |
|
17,016 |
|
17,016 |
|
17,016 |
|
|
Teekay Offshore Partners |
12,819 |
|
12,819 |
|
12,507 |
|
12,507 |
|
11,747 |
|
|
Teekay Tankers Ltd. (5) |
629 |
|
629 |
|
629 |
|
629 |
|
629 |
|
|
Total |
30,887 |
|
30,887 |
|
30,152 |
|
30,152 |
|
29,392 |
|
General partner interest |
|
|
|
|
|
|
|
|
|
|
|
Teekay LNG Partners |
7,568 |
|
7,566 |
|
6,320 |
|
5,946 |
|
5,935 |
|
|
Teekay Offshore Partners |
4,868 |
|
4,867 |
|
3,671 |
|
3,671 |
|
3,603 |
|
|
Total |
12,436 |
|
12,433 |
|
9,991 |
|
9,617 |
|
9,538 |
|
Total Teekay Parent cash flow before interest and dry
dock expenditures |
37,837 |
|
26,369 |
|
5,612 |
|
4,209 |
|
19,544 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
Net interest expense (6) |
(16,151 |
) |
(12,039 |
) |
(16,576 |
) |
(17,017 |
) |
(18,574 |
) |
|
Dry dock expenditures |
(549 |
) |
(2,056 |
) |
(607 |
) |
- |
|
- |
|
TOTAL TEEKAY PARENT FREE CASH FLOW |
21,137 |
|
12,274 |
|
(11,571 |
) |
(12,808 |
) |
970 |
|
|
(1) CFVO
represents income from vessel operations before depreciation and
amortization expense, vessel/goodwill write downs, loan loss
provisions, gains or losses on the sale of vessels, adjustments for
direct financing leases on a cash basis, and unrealized gains and
losses relating to derivatives, but includes realized gains and
losses on the settlement of foreign currency forward contracts.
CFVO is a non-GAAP financial measure used by certain investors to
measure the financial performance of shipping companies. For
further details for the three months ended March 31, 2014,
including a reconciliation of this non-GAAP financial measure to
the most directly comparable GAAP financial measure, please refer
to Appendix C to this release; for a reconciliation of
this non-GAAP financial measure to the most directly comparable
GAAP financial measure for the three months ended December 31,
2013, September 30, 2013, June 30, 2013, and March 31, 2013, please
refer to Appendix E to this release. |
|
(2) Includes charter termination fees of
$4.5 million and $6.8 million paid to Teekay Offshore during the
three months ended June 30, 2013 and March 31, 2013,
respectively. |
|
(3) Cash dividend and distribution cash
flows are shown on an accrual basis for dividends and distributions
declared for the respective period. |
|
(4) Common share/unit dividend/distribution
cash flows to Teekay Parent are based on Teekay Parent's ownership
on the ex-dividend date for the respective publicly traded
subsidiary and period as follows: |
|
|
Three Months Ended |
|
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
|
2014 |
2013 |
2013 |
2013 |
2013 |
|
|
|
|
|
|
Teekay LNG Partners |
|
|
|
|
|
|
|
|
|
|
|
Distribution per common unit |
$ |
0.6918 |
$ |
0.6918 |
$ |
0.6750 |
$ |
0.6750 |
$ |
0.6750 |
|
Common units owned by Teekay Parent |
|
25,208,274 |
|
25,208,274 |
|
25,208,274 |
|
25,208,274 |
|
25,208,274 |
|
Total distribution |
$ |
17,439,084 |
$ |
17,439,084 |
$ |
17,015,585 |
$ |
17,015,585 |
$ |
17,015,585 |
Teekay Offshore Partners |
|
|
|
|
|
|
|
|
|
|
|
Distribution per common unit |
$ |
0.5384 |
$ |
0.5384 |
$ |
0.5253 |
$ |
0.5253 |
$ |
0.5253 |
|
Common units owned by Teekay Parent |
|
23,809,468 |
|
23,809,468 |
|
23,809,468 |
|
23,809,468 |
|
22,362,814 |
|
Total distribution |
$ |
12,819,018 |
$ |
12,819,018 |
$ |
12,507,114 |
$ |
12,507,114 |
$ |
11,747,186 |
Teekay Tankers Ltd. |
|
|
|
|
|
|
|
|
|
|
|
Dividend per share |
$ |
0.03 |
$ |
0.03 |
$ |
0.03 |
$ |
0.03 |
$ |
0.03 |
|
Shares owned by Teekay Parent (5) |
|
20,976,530 |
|
20,976,530 |
|
20,976,530 |
|
20,976,530 |
|
20,976,530 |
|
Total dividend |
$ |
629,296 |
$ |
629,296 |
$ |
629,296 |
$ |
629,296 |
$ |
629,296 |
|
(5) Includes Class A and Class B shareholdings. |
|
(6) Net interest expense is a non-GAAP financial measure that
includes realized gains and losses on interest rate swaps. Please
see Appendix E to this release for a reconciliation of
this non-GAAP measure as used in this release to the most directly
comparable GAAP financial measure. |
|
|
TEEKAY CORPORATION |
APPENDIX E - RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
CASH FLOW FROM VESSEL OPERATIONS - CONSOLIDATED |
(in thousands of U.S. dollars) |
(unaudited) |
Set forth below is an unaudited calculation of consolidated CFVO
for the three months ended March 31, 2014 and March 31, 2013. CFVO,
a non-GAAP financial measure, represents income from vessel
operations before depreciation and amortization expense,
amortization of in-process revenue contracts, vessel write-downs,
gains or losses on the sale of vessels and unrealized gains or
losses relating to derivatives but includes realized gains or
losses on the settlement of foreign exchange forward contracts.
CFVO is included because certain investors use this data to measure
a company's financial performance. CFVO is not required by GAAP and
should not be considered as an alternative to net income or any
other indicator of the Company's performance required by GAAP.
|
|
|
|
Three Months Ended March 31, 2014 |
|
|
(unaudited) |
|
|
Teekay |
|
|
|
|
|
|
|
Teekay |
|
|
Offshore |
|
Teekay LNG |
|
Teekay |
Teekay |
|
Consolidation |
Corporation |
|
|
Partners LP |
|
Partners LP |
|
Tankers Ltd. |
Parent |
|
Adjustments |
Consolidated |
|
Income (loss) from vessel operations |
62,342 |
|
45,383 |
|
20,780 |
(16,638 |
) |
- |
111,867 |
|
Depreciation and amortization |
48,488 |
|
24,110 |
|
12,502 |
18,358 |
|
- |
103,458 |
|
Amortization of in process revenue contracts and other |
(3,142 |
) |
(278 |
) |
- |
(6,580 |
) |
- |
(10,000 |
) |
Realized losses from the settlements of non designated derivative
instruments |
(497 |
) |
- |
|
- |
(788 |
) |
- |
(1,285 |
) |
Gain on sale of vessels and equipment |
- |
|
- |
|
- |
162 |
|
- |
162 |
|
Cash flow from time-charter contracts, net of revenue accounted for
as direct finance leases |
958 |
|
2,219 |
|
- |
- |
|
- |
3,177 |
|
Cash flow from vessel operations - Consolidated |
108,149 |
|
71,434 |
|
33,282 |
(5,486 |
) |
- |
207,379 |
|
|
|
|
|
Three Months Ended March 31, 2013 |
|
|
(unaudited) |
|
|
Teekay |
|
|
|
|
|
|
|
|
|
Teekay |
|
|
Offshore |
|
Teekay LNG |
|
Teekay |
|
Teekay |
|
Consolidation |
|
Corporation |
|
|
Partners LP (1) |
|
Partners LP |
|
Tankers Ltd. |
|
Parent |
|
Adjustments |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from vessel operations |
39,384 |
|
41,788 |
|
1,504 |
|
(17,186 |
) |
(2,700 |
) |
62,790 |
|
Depreciation and amortization |
45,349 |
|
24,143 |
|
11,864 |
|
21,138 |
|
- |
|
102,494 |
|
Amortization of in process revenue contracts and other |
(3,123 |
) |
(1,945 |
) |
(240 |
) |
(15,300 |
) |
- |
|
(20,608 |
) |
Unrealized losses from the change in fair value of designated
foreign exchange forward contracts |
59 |
|
- |
|
- |
|
15 |
|
- |
|
74 |
|
Realized gains (losses) from the settlements of non-designated
foreign exchange forward contracts |
353 |
|
- |
|
- |
|
68 |
|
- |
|
421 |
|
Asset impairments / net loss on vessel sales |
11,247 |
|
- |
|
71 |
|
(8,121 |
) |
- |
|
3,197 |
|
Cash flow from time-charter contracts, net of revenue accounted for
as accounted for as direct finance leases |
784 |
|
1,584 |
|
- |
|
- |
|
- |
|
2,368 |
|
Cash flow from vessel operations - Consolidated(2) |
94,053 |
|
65,570 |
|
13,199 |
|
(19,386 |
) |
(2,700 |
) |
150,736 |
|
|
(1) The results of Teekay Offshore include
the results from both continuing and discontinued operations. |
|
(2) Excludes the cash flow from vessel
operations relating to assets acquired from Teekay Parent for the
periods prior to their acquisition by Teekay Offshore, Teekay LNG
and Teekay Tankers, respectively, as those results are included in
the historical results for Teekay Parent. |
|
|
TEEKAY CORPORATION |
APPENDIX E - RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
CASH FLOW FROM VESSEL OPERATIONS - EQUITY ACCOUNTED VESSELS |
(in thousands of U.S. dollars) |
(unaudited) |
Set forth below is an unaudited calculation of cash flow from
vessel operations for equity-accounted vessels for the three months
ended March 31, 2014 and March 31, 2013. CFVO, a non-GAAP financial
measure, represents income from vessel operations before
depreciation and amortization expense, amortization of in-process
revenue contracts, vessel write-downs, gains or losses on the sale
of vessels and unrealized gains or losses relating to derivatives,
but includes realized gains or losses on the settlement of foreign
exchange forward contracts. CFVO from equity accounted vessels
represents the Company's proportionate share of CFVO from its
equity accounted vessels and other investments. CFVO is included
because certain investors use this data to measure a company's
financial performance. CFVO is not required by GAAP and should not
be considered as an alternative to net income or any other
indicator of the Company's performance required by GAAP.
|
Three Months
Ended March 31, 2014 |
|
Three Months
Ended March 31, 2013 |
|
|
(unaudited) |
|
(unaudited) |
|
|
At |
|
Company's |
|
At |
|
Company's |
|
|
100% |
|
Portion(1) |
|
100% |
|
Portion(2) |
|
|
|
|
|
|
|
|
|
|
Revenues |
224,386 |
|
103,165 |
|
197,448 |
|
89,873 |
|
Vessel and other operating expenses |
101,092 |
|
46,075 |
|
101,526 |
|
46,894 |
|
Depreciation and amortization |
29,252 |
|
14,529 |
|
19,920 |
|
10,133 |
|
Loss on sale of vessel |
1,931 |
|
966 |
|
- |
|
- |
|
Income from vessel operations of equity accounted vessels |
92,111 |
|
41,594 |
|
76,002 |
|
32,846 |
|
Interest expense |
(22,076 |
) |
(10,217 |
) |
(13,060 |
) |
(5,825 |
) |
Realized and unrealized gain on derivative instruments |
(18,931 |
) |
(6,726 |
) |
(5,176 |
) |
(2,401 |
) |
Dilution gain on share issuance by TIL |
- |
|
4,108 |
|
- |
|
- |
|
Other income - net |
(2,819 |
) |
(1,266 |
) |
6,344 |
|
2,695 |
|
Other items |
(43,826 |
) |
(14,100 |
) |
(11,892 |
) |
(5,531 |
) |
Equity income of equity accounted vessels |
48,285 |
|
27,494 |
|
64,110 |
|
27,315 |
|
Income from vessel operations of equity accounted vessels |
92,111 |
|
41,594 |
|
76,002 |
|
32,846 |
|
Depreciation and amortization |
29,252 |
|
14,529 |
|
19,920 |
|
10,133 |
|
Loss
on sale of vessel |
1,931 |
|
966 |
|
- |
|
- |
|
Cash flow from time-charter contracts net of revenue accounted for
as direct finance lease |
7,462 |
|
2,707 |
|
6,876 |
|
2,495 |
|
Amortization of in-process revenue contracts and other |
(4,225 |
) |
(2,146 |
) |
(6,200 |
) |
(3,221 |
) |
Cash flow from vessel operationsof equity accounted vessels(3) |
126,531 |
|
57,650 |
|
96,598 |
|
42,253 |
|
(1) The Company's proportionate share of
its equity accounted vessels and other investments ranges from 13
percent to 52 percent. |
|
(2) The Company's proportionate share of
its equity accounted vessels and other investments ranges from 33
percent to 52 percent. |
|
(3) CFVO from equity accounted vessels
represents the Company's proportionate share of CFVO from its
equity accounted vessels and other investments. |
|
|
TEEKAY CORPORATION |
APPENDIX E - RECONCILIATION OF NON-GAAP MEASURES |
CASH FLOW FROM VESSEL OPERATIONS - TEEKAY PARENT |
(in thousands of U.S. dollars) |
(unaudited) |
Set forth below is an unaudited calculation of Teekay Parent
cash flow from vessel operations for the three months ended
December 31, 2013, September 30, 2013, June 30, 2013, and March 31,
2013. CFVO, a non-GAAP financial measure, represents income from
vessel operations before depreciation and amortization expense,
amortization of in-process revenue contracts, vessel write-downs,
gains or losses on the sale of vessels and unrealized gains or
losses relating to derivatives, but includes realized gains or
losses on the settlement of foreign exchange forward contracts.
CFVO is included because certain investors use this data to measure
a company's financial performance. CFVO is not required by GAAP and
should not be considered as an alternative to net income or any
other indicator of the Company's performance required by GAAP.
|
Three Months Ended December 31, 2013 |
|
|
(unaudited) |
|
|
Owned |
|
In-chartered |
|
|
|
|
|
Teekay |
|
|
Conventional |
|
Conventional |
|
|
|
|
|
Parent |
|
|
Tankers |
|
Tankers |
|
FPSOs |
|
Other |
|
Total |
|
Teekay Parent (loss) income from vessel operations |
(93,160 |
) |
(9,292 |
) |
(15,452 |
) |
6,171 |
|
(111,733 |
) |
Depreciation and amortization |
2,602 |
|
- |
|
18,995 |
|
(475 |
) |
21,140 |
|
Asset impairments and provisions (recoveries) |
90,813 |
|
- |
|
2,634 |
|
(8,713 |
) |
84,734 |
|
Gain on sale of vessel |
- |
|
- |
|
- |
|
40 |
|
40 |
|
Amortization of in process revenue contracts and other |
- |
|
- |
|
(10,691 |
) |
- |
|
(10,691 |
) |
Realized losses from the settlements of non-designated foreign
exchange forward contracts |
(23 |
) |
- |
|
(418 |
) |
- |
|
(441 |
) |
Cash flow from vessel operations - Teekay Parent |
232 |
|
(9,292 |
) |
(4,932 |
) |
(2,959 |
) |
(16,951 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2013 |
|
|
(unaudited) |
|
|
Owned |
|
In-chartered |
|
|
|
|
|
Teekay |
|
|
Conventional |
|
Conventional |
|
|
|
|
|
Parent |
|
|
Tankers |
|
Tankers |
|
FPSOs |
|
Other |
|
Total |
|
Teekay Parent loss from vessel operations |
(1,634 |
) |
(8,672 |
) |
(32,692 |
) |
(1,172 |
) |
(44,170 |
) |
Depreciation and amortization |
2,582 |
|
- |
|
19,670 |
|
(1,433 |
) |
20,819 |
|
Loss provision |
- |
|
- |
|
- |
|
1,141 |
|
1,141 |
|
Gain on sale of vessel |
- |
|
- |
|
- |
|
(161 |
) |
(161 |
) |
Amortization of in process |
|
|
|
|
|
|
|
|
|
|
revenue contracts and other |
- |
|
- |
|
(10,708 |
) |
- |
|
(10,708 |
) |
Unrealized losses from the change in fair value of designated
foreign exchange forward contracts |
19 |
|
- |
|
- |
|
- |
|
19 |
|
Realized losses from the settlements of non-designated foreign
exchange forward contracts |
(84 |
) |
- |
|
(484 |
) |
(903 |
) |
(1,471 |
) |
Cash flow from vessel operations - Teekay Parent |
883 |
|
(8,672 |
) |
(24,214 |
) |
(2,528 |
) |
(34,531 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2013 |
|
|
(unaudited) |
|
|
Owned |
|
In-chartered |
|
|
|
|
|
Teekay |
|
|
Conventional |
|
Conventional |
|
|
|
|
|
Parent |
|
|
Tankers |
|
Tankers |
|
FPSOs |
|
Other |
|
Total |
|
Teekay Parent (loss) income from vessel operations |
(2,922 |
) |
(18,203 |
) |
(21,883 |
) |
2,883 |
|
(40,125 |
) |
Depreciation and amortization |
2,582 |
|
(233 |
) |
20,646 |
|
(965 |
) |
22,030 |
|
Asset impairments/net (gain) on vessel sales |
- |
|
- |
|
(1,337 |
) |
(5,255 |
) |
(6,592 |
) |
Amortization of in process |
|
|
|
|
|
|
|
|
|
|
revenue contracts and other |
- |
|
- |
|
(11,184 |
) |
- |
|
(11,184 |
) |
Unrealized (gains) losses from the change in fair value of
designated foreign exchange forward contracts |
38 |
|
- |
|
- |
|
- |
|
38 |
|
Realized (losses) gains from the settlements of non-designated
foreign exchange forward contracts |
(78 |
) |
- |
|
(150 |
) |
- |
|
(228 |
) |
Dropdown predecessor cash flow |
- |
|
- |
|
501 |
|
- |
|
501 |
|
Cash flow from vessel operations - Teekay Parent |
(380 |
) |
(18,436 |
) |
(13,407 |
) |
(3,337 |
) |
(35,560 |
) |
|
|
|
|
Three Months Ended March 31, 2013 |
|
|
(unaudited) |
|
|
Owned |
|
In-chartered |
|
|
|
|
|
Teekay |
|
|
Conventional |
|
Conventional |
|
|
|
|
|
Parent |
|
|
Tankers |
|
Tankers |
|
FPSOs |
|
Other |
|
Total |
|
Teekay Parent (loss) income from vessel operations |
(2,547 |
) |
(8,528 |
) |
1,446 |
|
(7,557 |
) |
(17,186 |
) |
Depreciation and amortization |
2,582 |
|
(233 |
) |
19,335 |
|
(546 |
) |
21,138 |
|
Asset impairments/net (gain) loss on vessel sales |
- |
|
(11,247 |
) |
- |
|
3,126 |
|
(8,121 |
) |
Amortization of in process revenue contracts and other |
- |
|
- |
|
(15,300 |
) |
- |
|
(15,300 |
) |
Unrealized losses from the change in fair value of designated
foreign exchange forward contracts |
15 |
|
- |
|
- |
|
- |
|
15 |
|
Realized gains from the settlements of non-designated foreign
exchange forward contracts |
49 |
|
- |
|
19 |
|
- |
|
68 |
|
Cash flow from vessel operations - Teekay Parent |
99 |
|
(20,008 |
) |
5,500 |
|
(4,977 |
) |
(19,386 |
) |
|
|
TEEKAY CORPORATION |
APPENDIX E - RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
NET REVENUES |
(in thousands of U.S. dollars) |
(unaudited) |
Set forth below is an unaudited calculation of net revenues for
the three months and year ended March 31, 2014 and March 31, 2013.
Net revenues represents revenues less voyage expenses, which
comprise all expenses relating to certain voyages, including bunker
fuel expenses, port fees, cargo loading and unloading expenses,
canal tolls, agency fees and commissions. Net revenues is included
because certain investors use this data to measure the financial
performance of shipping companies. Net revenues is not required by
GAAP and should not be considered as an alternative to revenues or
any other indicator of the Company's performance required by
GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Teekay |
|
|
Teekay Offshore |
|
Teekay LNG |
|
Teekay |
|
Teekay |
|
Consolidation |
|
Corporation |
|
|
Partners LP |
|
Partners LP |
|
Tankers Ltd. |
|
Parent |
|
Adjustments |
|
Consolidated |
|
Revenues |
259,234 |
|
101,490 |
|
61,759 |
|
112,505 |
|
(28,494 |
) |
506,494 |
|
Voyage expense |
(33,454 |
) |
(1,333 |
) |
(1,439 |
) |
(756 |
) |
1,970 |
|
(35,012 |
) |
Net revenues |
225,780 |
|
100,157 |
|
60,320 |
|
111,749 |
|
(26,524 |
) |
471,482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
Teekay |
|
|
Teekay Offshore |
|
Teekay LNG |
|
Teekay |
|
Teekay |
|
Consolidation |
|
Corporation |
|
|
Partners LP (1) |
|
Partners LP |
|
Tankers Ltd. |
|
Parent |
|
Adjustments |
|
Consolidated |
|
Revenues |
224,422 |
|
97,107 |
|
44,953 |
|
123,960 |
|
(39,405 |
) |
451,037 |
|
Voyage expense |
(23,226 |
) |
(391 |
) |
(2,913 |
) |
(1,742 |
) |
1,957 |
|
(26,315 |
) |
Net revenues |
201,196 |
|
96,716 |
|
42,040 |
|
122,218 |
|
(37,448 |
) |
424,722 |
|
|
(1) The results
of Teekay Offshore include the results from both continuing and
discontinued operations. |
|
|
TEEKAY CORPORATION |
APPENDIX E - RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
NET INTEREST EXPENSE - TEEKAY PARENT |
(in thousands of U.S. dollars) |
(unaudited) |
Set forth below is an unaudited calculation of Teekay Parent net
interest expense for the three months ended March 31, 2014,
December 31, 2013, September 30, 2013, June 30, 2013, and March 31,
2013. Net interest expense is a non-GAAP financial measure that
includes realized gains and losses on interest rate swaps. Net
interest expense is not required by GAAP and should not be
considered as an alternative to interest expense or any other
indicator of the Company's performance required by GAAP.
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
|
2014 |
|
2013 |
|
2013 |
|
2013 |
|
2013 |
|
Interest expense |
(49,333 |
) |
(48,382 |
) |
(45,817 |
) |
(44,687 |
) |
(42,510 |
) |
Interest income |
1,783 |
|
5,129 |
|
1,543 |
|
2,018 |
|
1,018 |
|
Net interest expense - consolidated |
(47,550 |
) |
(43,253 |
) |
(44,274 |
) |
(42,669 |
) |
(41,492 |
) |
Less: |
|
|
|
|
|
|
|
|
|
|
|
Non-Teekay Parent net interest expense |
(35,135 |
) |
(35,130 |
) |
(31,604 |
) |
(29,540 |
) |
(26,725 |
) |
Interest expense net of interest income - Teekay
Parent |
(12,415 |
) |
(8,123 |
) |
(12,670 |
) |
(13,129 |
) |
(14,767 |
) |
Add: |
|
|
|
|
|
|
|
|
|
|
|
Teekay Parent realized losses on interest rate swaps (1) |
(3,736 |
) |
(3,916 |
) |
(3,906 |
) |
(3,888 |
) |
(3,807 |
) |
Net interest expense - Teekay Parent |
(16,151 |
) |
(12,039 |
) |
(16,576 |
) |
(17,017 |
) |
(18,574 |
) |
|
(1) Realized
losses on interest rate swaps for the three months ended March 31,
2014 excludes a realized gain on the termination of a swap
agreement. Realized losses on interest rate swaps for the three
months ended June 30, 2013 excludes a realized loss on the
termination of a swap agreement prior to the acquisition of the
Voyageur FPSO unit in May 2013. |
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 regarding:
Teekay Parent's strategic objective of having our ships and
offshore units owned at the daughter company level and creating
value primarily by increasing cash flows generated by its
publicly-traded daughter entities; the estimated cost and timing of
delivery of newbuildings and converted vessels and the commencement
of associated time-charter contracts; Teekay Offshore's potential
acquisition of Logitel, including the timing of finalizing the
transaction and the effect on the value of Teekay Parent's general
partnership interest; securing employment for Logitel's second FAU
newbuilding; the ability of Teekay Offshore to obtain financing for
the FAU newbuildings; the timing and certainty of Teekay Parent's
FPSOs becoming eligible for dropdown to Teekay Offshore under the
omnibus agreement, including the effect on Teekay Offshore's growth
and Teekay Parent's general partnership ownership and net debt; the
timing of the Petrojarl Banff FPSO completing field installation
and recommencing its charter contract, including the effect on
Teekay Parent's cash flow; the potential for Teekay LNG, through a
new 50/50 joint venture with a China-based LNG shipping company, to
provide six icebreaker LNG carriers for the Yamal LNG project,
including the effect on the value of Teekay Parent's general
partnership interest, and the actual magnitude of such project, if
completed; TIL's acquisition of four vessels and the ability of TIL
to secure additional future tanker acquisitions; Teekay Tankers
completing the acquisition of an ownership interest in Teekay
Operations; the potential upside to Teekay Parent from an expected
tanker market recovery; and the timing of amount of future capital
expenditure commitments for Teekay Parent, Teekay LNG and Teekay
Offshore. 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: changes in
production of or demand for oil, petroleum products, LNG and LPG,
either generally or in particular regions; greater or less than
anticipated levels of tanker newbuilding orders or greater or less
than anticipated rates of tanker scrapping; changes in trading
patterns significantly affecting overall vessel tonnage
requirements; changes in applicable industry laws and regulations
and the timing of implementation of new laws and regulations;
changes in the typical seasonal variations in tanker charter rates;
changes in the offshore production of oil or demand for shuttle
tankers, FSOs and FPSOs; decreases in oil production by or
increased operating expenses for FPSO units; trends in prevailing
charter rates for shuttle tanker and FPSO contract renewals; the
potential for early termination of long-term contracts and
inability of the Company to renew or replace long-term contracts or
complete existing contract negotiations; failure by Teekay Offshore
to complete the acquisition of Logitel; failure by Teekay Offshore
to secure financing on the two FAU newbuildings and secure a
charter contract for the second FAU newbuilding; failure by Teekay
LNG to secure financing for newbuildings; potential failure of the
Yamal LNG Project to be completed for any reason, including due to
lack of funding as a result of existing or future sanctions against
Russia and Russian entities and individuals, which may affect
partners in the project; potential inability of the Partnership's
joint venture to negotiate acceptable terms and documentation
relating to its proposed participation in the Yamal LNG Project;
failure by Teekay LNG to secure the required contracts for the
Yamal LNG project for six icebreaker LNG carriers; potential delays
or cancellation of the Yamal LNG project; shipyard construction or
vessel conversion delays and cost overruns; delays in commencement
of operations of FPSO and FSO units at designated fields; changes
in the Company's expenses; the Company's future capital expenditure
requirements and the inability to secure financing for such
requirements; the inability of the Company to complete vessel sale
transactions to its publicly-traded subsidiaries or to third
parties; potential delays in the construction of the Knarr FPSO
and/or commencement of operations under its charter contract;
potential delays in installing the Petrojarl Banff FPSO and/or
recommencement of operations under its charter contract; conditions
in the capital markets; failure of TIL to complete its anticipated
vessel acquisitions and/or to enter into a new credit facility; and
other factors discussed in Teekay's filings from time to time with
the SEC, including its Report on Form 20-F for the fiscal year
ended December 31, 2013. The Company 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 the Company's expectations with respect
thereto or any change in events, conditions or circumstances on
which any such statement is based.
Teekay CorporationRyan HamiltonInvestor Relations Enquiries+1
(604) 844-6654www.teekay.com
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