New Orleans-based Tidewater Inc. reported net loss for the three months ended Dec. 31, 2017 (successor), of $23.6 million, or $1.02 per common share, on revenues of $104.5 million.
For the five-month period from Aug. 1, 2017, through Dec. 31, 2017 (successor), the net loss was $39.3 million, or $1.82 per common share, on revenues of $178.8 million. [References to "successor" relate to the financial position and results of operations of the reorganized company subsequent to July 31, 2017, while references to "predecessor" relate to the financial position and results of operations of the company through July 31, 2017.]
As more fully explained in the company's 10-K for the nine-month transition period ended Dec. 31, 2017, after emerging from Chapter 11 bankruptcy on July 31, 2017, the company adopted fresh-start accounting in accordance with applicable accounting and reporting regulations. This resulted in Tidewater becoming a new entity for financial reporting purposes on July 31. Included in the $23.6 million ($1.02 per common share) net loss for the three months ending Dec. 31, 2017 (successor) were the following:
- $16.8 million (72 cents per share) in non-cash asset impairment charges that resulted from impairment reviews undertaken during the three months ended Dec. 31, 2017.
- $2.4 million (10 cents per share) of reorganization items related to the company's Chapter 11 proceedings.
Included in the $39.3 million ($1.82 per common share) net loss for the five- month period from Aug. 1, 2017, through Dec. 31, 2017 (Successor) were the following:
- $16.8 million (78 cents per share) in non-cash asset impairment charges that resulted from impairment reviews undertaken during the five-month period ended Dec. 31, 2017.
- $4.3 million (20 cents per share) of reorganization items related to the company's Chapter 11 proceedings.
Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) for the three months ended Dec. 31, 2017 (successor), which excludes reorganization items and asset impairment charges, but includes $2.6 million of stock-based compensation expense, was $13.3 million. EBITDA for the five-month period from Aug. 1, 2017, through Dec. 31, 2017 (successor), which excludes reorganization items and asset impairment charges, but includes $3.7 million of stock-based compensation expense and $1.2 million of vessel operating lease expense for vessels returned to their owners in connection with the company's reorganization plan, was $17.7 million.
John Rynd, president and CEO of Tidewater, told analysts in today's earnings call that the company's results for the quarter "reflect continued weakness in the offshore supply vessel market. While oil prices have continue to improve and appear to somewhat stabilize, our customers have begun, at least in some cases to commit to new offshore projects, the increase in spending not yet significant enough to offset the declines over the past several years."
Rynd added that despite a modest pickup in bidding activity and customer inquiries, "we expect the global OSV market to remain challenging in 2018."
Tom Bates, chairman of the board, said in a statement, "I would like to again thank Larry Rigdon for his leadership of the business during his tenure as interim president and chief executive officer. Significant progress has been made in achieving the company's near-term objective of reaching a cash flow breakeven. John, Larry and I look forward to working with our fellow directors on behalf of all Tidewater stakeholders."
In the last four years, Tidewater has disposed of 76 vessels, 28 of which were sold as scrap.
