HERCULES OFFSHORE, INC. HOUSTON, March 30, 2016 /PRNewswire/ -- Hercules Offshore, Inc. (Nasdaq: HERO) today reported a net loss of $361.8 million, or $2.24 per diluted share, on revenue of $27.5 million for the period from October 1, 2015 to November 6, 2015 for the Predecessor Company, and a net loss of $23.7 million, or $1.18 per diluted share, on revenue of $32.4 million for the period from November 6, 2015 to December 31, 2015 for the Successor Company. Upon emergence from Chapter 11 bankruptcy on November 6, 2015, Hercules adopted fresh start accounting, which resulted in the Company becoming a new entity for financial reporting purposes. References to "Successor" relate to the financial position of the reorganized Hercules as of and subsequent to November 6, 2015. References to "Predecessor" refer to the financial position of Hercules as of and prior to November 6, 2015 and the results of operations through November 6, 2015. As a result of the application of fresh start accounting and the effects of the implementation of the Plan of Reorganization, the financial statements on or after November 6, 2015 are not comparable with the financial statements prior to that date.
As outlined in the Reconciliation of GAAP to Non-GAAP Financial Measures, Predecessor results for the period from October 1, 2015 to November 6, 2015 include a net charge of approximately $345.6 million, or $2.14 per diluted share, consisting primarily of a $342.7 million charge for reorganization items. Successor results for the period from November 6, 2015 to December 31, 2015 include a charge for reorganization items of $1.3 million, or $0.06 per diluted share. For the fourth quarter 2014, the Predecessor reported a net loss of $154.1 million, or $0.96 per diluted share, on revenue of $178.7 million. Predecessor results for the fourth quarter 2014 include a non-cash impairment charge of property and equipment for $117.0 million, or $0.73 per diluted share.
For the period from January 1, 2015 to November 6, 2015, the Predecessor reported a net loss of $602.5 million, or $3.73 per diluted share, on revenue of $303.2 million, and a net loss of $23.7 million, or $1.18 per diluted share, on revenue of $32.4 million for the period from November 6, 2015 to December 31, 2015 for the Successor. For the twelve month period ending December 31, 2014, the Predecessor reported a net loss of $216.1 million, or $1.35 per diluted share, on revenue of $900.3 million. As outlined in the Reconciliation of GAAP to Non-GAAP Financial Measures, Predecessor results for the period from January 1, 2015 to November 6, 2015 include a net charge of approximately $384.3 million, or $2.38 per diluted share, primarily related to reorganization, restructuring and financing items. Predecessor results for the twelve month period ending December 31, 2014 include a net charge of approximately $196.8 million, or $1.23 per diluted share, consisting of a $199.5 million non-cash impairment charge of property and equipment, a $22.6 million net gain on the sale of cold stacked drilling rigs, and a $19.9 million charge related to retirement of our 7.125% senior secured notes and issuance of our 6.75% senior notes.
John T. Rynd, Chief Executive Officer and President of Hercules Offshore stated, "We closed out 2015 with the drilling industry at its weakest point in over 30 years, driven by the sharp decline in the price of crude oil. Both our rig and liftboat segments in all regions have been negatively impacted. In an effort to realign our cost structure to better reflect the weak environment, we have made significant reductions to our organization and capital spending programs, and will continue to be vigilant with our cost curtailment efforts. As previously disclosed, we are also working diligently with our Board of Directors and advisors on reviewing our strategic alternatives to maximize the value of the Company.
"Looking into 2016 and beyond, we do not expect business conditions to rebound without a material and sustained rally in oil prices. The duration of this low commodity price environment is uncertain, which places greater emphasis on liquidity and drove us to proactively restructure our balance sheet last year. We emerged from our restructuring process with significantly less debt and over $500 million in cash, including $200 million reserved for the final shipyard payment on our newbuild rig the Hercules Highlander. Construction of the Hercules Highlander is progressing as scheduled, with delivery expected during the second quarter 2016. We are working closely with our customer, Maersk Oil & Gas, and the shipyard to ensure timely delivery and acceptance of the rig prior to its departure to the U.K. North Sea, where it will commence on its five-year contract."
Domestic Offshore
Revenue generated from Domestic Offshore by the Predecessor for the period from October 1, 2015 to November 6, 2015 was $10.3 million, and $9.9 million for the period from November 6, 2015 to December 31, 2015 for the Successor. Fourth quarter 2014 Predecessor revenue was $90.2 million. The 78% decrease in revenue was driven largely by lower dayrates and utilization on a reduced rig fleet. Operating expense reported by the Predecessor for the period from October 1, 2015 to November 6, 2015 was $5.4 million and $9.0 million for the period from November 6, 2015 to December 31, 2015 for the Successor. Fourth quarter 2014 Predecessor operating expense was $59.3 million. The 76% decline in operating expense is largely attributable to a reduction in the number of marketed rigs in operation. Domestic Offshore reported nearly breakeven operating income by the Predecessor for the period from October 1, 2015 to November 6, 2015 and an operating loss of $0.6 million for the period from November 6, 2015 to December 31, 2015 for the Successor. Fourth quarter 2014 Predecessor reported an operating loss of $104.2 million for Domestic Offshore, including a non-cash asset impairment charge of property and equipment for $117.0 million.
International Offshore
Revenue generated from International Offshore by the Predecessor for the period from October 1, 2015 to November 6, 2015 was $12.4 million and $17.3 million for the period from November 6, 2015 to December 31, 2015 for the Successor. Fourth quarter 2014 Predecessor revenue was $64.6 million. The 54% decrease in revenue was primarily due to lower contracted dayrates for the rigs working for Saudi Aramco and idle time on the Hercules 208, Hercules 267 and Hercules Resilience, partially offset by full utilization on the Hercules 260. Operating expense reported by the Predecessor for the period from October 1, 2015 to November 6, 2015 was $13.3 million and $14.4 million for the period from November 6, 2015 to December 31, 2015 for the Successor. Fourth quarter 2014 Predecessor operating expense was $54.0 million. The 49% decline in operating expense was primarily driven by cost reduction measures on the idle rigs as well as higher fourth quarter 2014 expense related to the mobilization cost of the Hercules Triumph to the North Sea. International Offshore reported an operating loss of $10.3 million by the Predecessor for the period from October 1, 2015 to November 6, 2015 and an operating loss of $1.6 million for the period from November 6, 2015 to December 31, 2015 for the Successor. Fourth quarter 2014 Predecessor reported an operating loss of $11.0 million for International Offshore.
International Liftboats
Revenue generated from International Liftboats by the Predecessor for the period from October 1, 2015 to November 6, 2015 was $4.8 million and $5.3 million for the period from November 6, 2015 to December 31, 2015 for the Successor. Fourth quarter 2014 Predecessor revenue was $23.8 million. The 58% decrease in revenue was driven primarily by lower dayrates and utilization. Operating expense reported by the Predecessor for the period from October 1, 2015 to November 6, 2015 was $3.8 million and $6.3 million for the period from November 6, 2015 to December 31, 2015 for the Successor. Fourth quarter 2014 Predecessor operating expense was $16.1 million. The 38% decline in operating expense reflects our cost reduction measures and lower activity levels. International Liftboats reported an operating loss of $1.4 million by the Predecessor for the period from October 1, 2015 to November 6, 2015 and an operating loss of $3.2 million for the period from November 6, 2015 to December 31, 2015 for the Successor. Fourth quarter 2014 Predecessor reported operating income of $0.9 million for International Liftboats.
Reorganization Items
For the period from October 1, 2015 to November 6, 2015, the Predecessor incurred $342.7 million of Reorganization Items, consisting of a $1.0 billion non-cash adjustment of assets due to the application of fresh start accounting, a $686.6 million non-cash gain on the settlement of liabilities subject to compromise, and $10.0 million of other items related to the reorganization, principally professional fees. For the period from November 6, 2015 to December 31, 2015, the Successor incurred $1.3 million of Reorganization Items, primarily for professional fees.
Costs incurred associated with our financing and restructuring activities consisted of the following (in thousands):
Successor Predecessor Successor Predecessor
Period from Period from Period from Period from
November 6, October 1, November 6, January 1,
2015 to 2015 to 2015 to 2015 to
December 31, November 6, December 31, November 6,
2015 2015 2015 2015
---- ---- ---- ----
Reorganization Items:
Non-cash net loss due to fresh start
accounting adjustments $ - $1,019,255 $ - $1,019,255
Non-cash gain on settlement of liabilities
subject to compromise (debt forgiveness) - (686,559) - (686,559)
Non-cash charge related to write-off of
unamortized debt issuance costs - - - 11,535
Professional fees 1,330 10,045 1,330 12,819
Total Reorganization Items $1,330 $342,741 $1,330 $357,050
====== ======== ====== ========
Professional fees related to the
Reorganization:
Costs incurred prior to Bankruptcy Petition
(General and Administrative Expense) $ - $ - $ - $18,879
Costs incurred post Bankruptcy Petition
(Reorganization Items) 1,330 10,045 1,330 12,819
Total Professional fees related to
Reorganization $1,330 $10,045 $1,330 $31,698
====== ======= ====== =======
Non-GAAP
References in the Selected Financial and Operating Data tables to the change and the percentage change combine the Successor Company and Predecessor Company results for the quarter and year ended December 31, 2015 in order to provide comparability of such information to the quarter and year ended December 31, 2014. While this combined presentation is a non-GAAP presentation for which there is no comparable GAAP measure, management believes that providing this financial information is the most relevant and useful method for making comparisons to the quarter and year ended December 31, 2014.
Certain non-GAAP performance measures and corresponding reconciliations to GAAP financial measures for the Company have been provided for additional meaningful information. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles. In order to fully assess the financial operating results, management believes that the adjusted net income figures included in this release are appropriate measures of the continuing and normal operations of the Company. However, these measures should be considered in addition to, and not as a substitute for, or superior to, revenue, net income, operating income, cash flows from operations, or other measures of financial performance prepared in accordance with GAAP. The non-GAAP measures included in this press release have been reconciled to the nearest GAAP measure in the tables that follow the financial statements. Please see the attached Reconciliation of GAAP to Non-GAAP Financial Measures for a complete description of the adjustments made to Revenue, Operating Income, Net Income and Diluted Income per Share.
Conference Call Information
Hercules Offshore will conduct a conference call at 10:00 a.m. CT (11:00 a.m. ET) on March 31, 2016, to discuss its fourth quarter and full year 2015 financial results. To participate in the call, dial +1 (855) 865-4806 (Domestic) or +1 (262) 912-6154 (International) and reference access code 75252935 approximately 10 minutes prior to the start of the call. The conference call will also be broadcast live via the Internet at http://www.herculesoffshore.com.
A replay of the conference call will be available by telephone on March 31, 2016, beginning at 1:00 p.m. CT (2:00 p.m. ET), through April 7, 2016. The phone number for the conference call replay is +1 (855) 859-2056 (Domestic) or +1 (404) 537-3406 (International) with access code 75252935. Additionally, the recorded conference call will be accessible through our website at http://www.herculesoffshore.com for 7 days after the conference call.
About Hercules Offshore, Inc.
Headquartered in Houston, Hercules Offshore, Inc. operates a fleet of 27 jackup rigs, including one rig under construction, and 19 liftboats. The Company offers a range of services to oil and gas producers to meet their needs during drilling, well service, platform inspection, maintenance, and decommissioning operations in several key shallow water provinces around the world. For more information, please visit our website at http://www.herculesoffshore.com.
The news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are subject to a number of risks, uncertainties and assumptions, including the factors described in Hercules Offshore's most recent periodic reports and other documents filed with the Securities and Exchange Commission, which are available free of charge at the SEC's website at http://www.sec.gov or the Company's website at http://www.herculesoffshore.com. Hercules Offshore cautions you that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected or implied in these statements.
HERCULES OFFSHORE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
Successor Predecessor
--------- -----------
December 31, December 31,
2015 2014
---- ----
(Unaudited)
ASSETS
Current Assets:
Cash and Cash Equivalents $330,780 $207,937
Accounts Receivable, Net 63,668 166,359
Prepaids 11,740 19,585
Current Deferred Tax Asset - 4,461
Other 4,015 5,955
----- -----
410,203 404,297
Property and
Equipment, Net 465,497 1,574,749
Restricted Cash 200,000 -
Other Assets, Net 32,440 23,361
$1,108,140 $2,002,407
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Liabilities:
Accounts Payable $43,616 $52,952
Accrued Liabilities 49,108 66,090
Interest Payable - 32,008
Other Current Liabilities 6,148 13,406
----- ------
98,872 164,456
Long-term Debt 428,715 1,210,919
Deferred Income
Taxes - 4,147
Other Liabilities 16,622 7,854
Commitments and
Contingencies
Stockholders'
Equity 563,931 615,031
$1,108,140 $2,002,407
========== ==========
HERCULES OFFSHORE, INC. AND SUBSIDIARIES
QUARTERLY CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Successor Predecessor
--------- -----------
Period from Period from Three Months
November 6, 2015 to October 1, 2015 to Ended
December 31, 2015 November 6, 2015 December 31, 2014
----------------- ---------------- -----------------
(Unaudited) (Unaudited) (Unaudited)
Revenue $32,442 $27,534 $178,670
Costs and Expenses:
Operating Expenses 29,675 22,428 129,462
Asset Impairment - - 117,001
Depreciation and Amortization 4,534 14,765 42,826
General and Administrative 7,120 7,295 14,703
41,329 44,488 303,992
------ ------ -------
Operating Loss (8,887) (16,954) (125,322)
Other Income (Expense):
Interest Expense (7,939) - (24,978)
Reorganization Items, Net (1,330) (342,741) -
Other, Net (4,785) 13 (235)
Loss Before Income Taxes (22,941) (359,682) (150,535)
Income Tax Provision (728) (2,096) (3,584)
---- ------ ------
Net Loss $(23,669) $(361,778) $(154,119)
======== ========= =========
Net Loss Per Share -Basic and
Diluted $(1.18) $(2.24) $(0.96)
Weighted Average Shares Outstanding -
Basic and Diluted 19,989 161,641 160,816
HERCULES OFFSHORE, INC. AND SUBSIDIARIES
ANNUAL CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Successor Predecessor
--------- -----------
Period from Period from Twelve Months
November 6, 2015 to January 1, 2015 to Ended
December 31, 2015 November 6, 2015 December 31, 2014
----------------- ---------------- -----------------
(Unaudited) (Unaudited)
Revenue $32,442 $303,206 $900,251
Costs and Expenses:
Operating Expenses 29,675 271,988 543,236
Asset Impairment - - 199,508
Depreciation and Amortization 4,534 126,963 170,898
General and Administrative 7,120 79,884 75,108
41,329 478,835 988,750
------ ------- -------
Operating Loss (8,887) (175,629) (88,499)
Other Income (Expense):
Interest Expense (7,939) (61,173) (99,142)
Loss on Extinguishment of Debt - (1,884) (19,925)
Reorganization Items, Net (1,330) (357,050) -
Other, Net (4,785) 284 (39)
Loss Before Income Taxes (22,941) (595,452) (207,605)
Income Tax Provision (728) (7,042) (8,505)
---- ------ ------
Net Loss $(23,669) $(602,494) $(216,110)
======== ========= =========
Net Loss Per Share -Basic and
Diluted $(1.18) $(3.73) $(1.35)
Weighted Average Shares Outstanding -
Basic and Diluted 19,989 161,430 160,598
HERCULES OFFSHORE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Successor Predecessor
--------- -----------
Period from Period from Twelve Months
November 6, January 1, Ended
2015 to 2015 to December 31,
December 31, November 6, 2014
2015 2015
---- ----
(Unaudited) (Unaudited)
Cash Flows from Operating Activities:
Net Loss $(23,669) $(602,494) $(216,110)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating
Activities:
Depreciation and Amortization 4,534 126,963 170,898
Stock-Based Compensation Expense 26 6,922 8,348
Deferred Income Taxes 16 1,931 (7,691)
Provision for Doubtful Accounts Receivable 1,855 7,665 5,627
(Gain) Loss on Disposal of Assets, Net (28) 970 (22,598)
Asset Impairment - - 199,508
Non-Cash Reorganization Items, Net - 344,231 -
Non-Cash Loss on Derivative 4,837 - -
Other 342 2,146 4,810
Net Change in Operating Assets and
Liabilities (14,372) 102,065 (28,079)
Net Cash Provided by (Used in) Operating
Activities (26,459) (9,601) 114,713
Cash Flows from Investing Activities:
Capital Expenditures (5,066) (78,097) (147,522)
Increase in Restricted Cash - (200,000) -
Insurance Proceeds Received - 3,543 9,067
Proceeds from Sale of Assets, Net 78 9,697 35,135
Other 377 227 1,479
Net Cash Used in Investing Activities (4,611) (264,630) (101,841)
Cash Flows from Financing Activities:
Long-term Debt Borrowings - 436,500 300,000
Redemption of 7.125% Senior Secured Notes - - (300,000)
Payment of Debt Issuance Costs - (8,356) (3,914)
Other - - 573
Net Cash Provided by (Used in) Financing
Activities - 428,144 (3,341)
Net Increase (Decrease) in Cash and Cash Equivalents (31,070) 153,913 9,531
Cash and Cash Equivalents at Beginning of Period 361,850 207,937 198,406
Cash and Cash Equivalents at End of Period $330,780 $361,850 $207,937
======== ======== ========
HERCULES OFFSHORE, INC. AND SUBSIDIARIES
QUARTERLY SELECTED FINANCIAL AND OPERATING DATA
(Dollars in thousands, except per day amounts)
(Unaudited)
Successor Predecessor
--------- -----------
(a) (b) (c) (a) + (b) - (c)
--- --- --- --------------
Period from Period from Three Months Change % Change
November 6, October 1, Ended
2015 to 2015 to December 31,
December 31, November 6, 2014
2015 2015
---- ----
Domestic Offshore:
Number of rigs (as of end of period) 18 18 24
Revenue $9,859 $10,347 $90,241 $(70,035) (77.6%)
Operating expenses 8,966 5,408 59,304 (44,930) (75.8%)
Asset impairment - - 117,001 (117,001) n/m
Depreciation and amortization
expense 1,097 4,466 16,628 (11,065) (66.5%)
General and administrative expenses 404 484 1,490 (602) (40.4%)
Operating loss $(608) $(11) $(104,182) $103,563 (99.4%)
International Offshore:
Number of rigs (as of end of period) 9 9 9
Revenue $17,321 $12,394 $64,606 $(34,891) (54.0%)
Operating expenses 14,395 13,251 54,013 (26,367) (48.8%)
Depreciation and amortization
expense 1,870 8,510 20,385 (10,005) (49.1%)
General and administrative expenses 2,691 970 1,165 2,496 214.2%
Operating loss $(1,635) $(10,337) $(10,957) $(1,015) 9.3%
International Liftboats:
Number of liftboats (as of end of
period) 19 19 24
Revenue $5,262 $4,793 $23,823 $(13,768) (57.8%)
Operating expenses 6,314 3,769 16,145 (6,062) (37.5%)
Depreciation and amortization
expense 1,567 1,539 4,895 (1,789) (36.5%)
General and administrative expenses 626 918 1,845 (301) (16.3%)
Operating income (loss) $(3,245) $(1,433) $938 $(5,616) n/m
Total Company:
Revenue $32,442 $27,534 $178,670 $(118,694) (66.4%)
Operating expenses 29,675 22,428 129,462 (77,359) (59.8%)
Asset impairment - - 117,001 (117,001) n/m
Depreciation and amortization
expense 4,534 14,765 42,826 (23,527) (54.9%)
General and administrative expenses 7,120 7,295 14,703 (288) (2.0%)
Operating loss (8,887) (16,954) (125,322) 99,481 (79.4%)
Interest expense (7,939) - (24,978) 17,039 (68.2%)
Reorganization items, net (1,330) (342,741) - (344,071) n/m
Other, net (4,785) 13 (235) (4,537) n/m
Loss before income taxes (22,941) (359,682) (150,535) (232,088) 154.2%
Income tax provision (728) (2,096) (3,584) 760 (21.2%)
Net loss $(23,669) $(361,778) $(154,119) $(231,328) 150.1%
HERCULES OFFSHORE, INC. AND SUBSIDIARIES
ANNUAL SELECTED FINANCIAL AND OPERATING DATA - (Continued)
(Dollars in thousands, except per day amounts)
(Unaudited)
Successor Predecessor
--------- -----------
(a) (b) (c) (a) + (b) - (c)
--- --- --- --------------
Period from Period from Twelve Months Change % Change
November 6, January 1, Ended
2015 to 2015 to December 31,
December 31, November 6, 2014
2015 2015
---- ----
Domestic Offshore:
Number of rigs (as of end of period) 18 18 24
Revenue $9,859 $131,308 $497,209 $(356,042) (71.6%)
Operating expenses 8,966 95,279 261,399 (157,154) (60.1%)
Asset impairment - - 199,508 (199,508) n/m
Depreciation and amortization
expense 1,097 39,031 70,576 (30,448) (43.1%)
General and administrative expenses 404 5,462 6,314 (448) (7.1%)
Operating loss $(608) $(8,464) $(40,588) $31,516 (77.6%)
International Offshore:
Number of rigs (as of end of period) 9 9 9
Revenue $17,321 $113,438 $291,486 $(160,727) (55.1%)
Operating expenses 14,395 131,291 207,190 (61,504) (29.7%)
Depreciation and amortization
expense 1,870 71,033 75,672 (2,769) (3.7%)
General and administrative expenses 2,691 6,225 8,322 594 7.1%
Operating income (loss) $(1,635) $(95,111) $302 $(97,048) n/m
International Liftboats:
Number of liftboats (as of end of
period) 19 19 24
Revenue $5,262 $58,460 $111,556 $(47,834) (42.9%)
Operating expenses 6,314 45,418 74,647 (22,915) (30.7%)
Depreciation and amortization
expense 1,567 14,599 20,763 (4,597) (22.1%)
General and administrative expenses 626 11,608 11,712 522 4.5%
Operating income (loss) $(3,245) $(13,165) $4,434 $(20,844) n/m
Total Company:
Revenue $32,442 $303,206 $900,251 $(564,603) (62.7%)
Operating expenses 29,675 271,988 543,236 (241,573) (44.5%)
Asset impairment - - 199,508 (199,508) n/m
Depreciation and amortization
expense 4,534 126,963 170,898 (39,401) (23.1%)
General and administrative expenses 7,120 79,884 75,108 11,896 15.8%
Operating loss (8,887) (175,629) (88,499) (96,017) 108.5%
Interest expense (7,939) (61,173) (99,142) 30,030 (30.3%)
Loss on extinguishment of debt - (1,884) (19,925) 18,041 n/m
Reorganization items, net (1,330) (357,050) - (358,380) n/m
Other, net (4,785) 284 (39) (4,462) n/m
Loss before income taxes (22,941) (595,452) (207,605) (410,788) 197.9%
Income tax provision (728) (7,042) (8,505) 735 (8.6%)
Net loss $(23,669) $(602,494) $(216,110) $(410,053) 189.7%
HERCULES OFFSHORE, INC. AND SUBSIDIARIES
QUARTERLY SELECTED FINANCIAL AND OPERATING DATA - (Continued)
(Dollars in thousands, except per day amounts)
(Unaudited)
Period from November 6, 2015 to December 31, 2015 (Successor)
------------------------------------------------------------
Operating Days Available Days Utilization (1) Average Average
Revenue per Operating
Day (2) Expense per
Day (3)
------
Domestic Offshore 159 495 32.1% $62,006 $18,113
International Offshore 220 440 50.0% 78,732 32,716
International Liftboats 298 990 30.1% 17,658 6,378
Period from October 1, 2015 to November 6, 2015 (Predecessor)
------------------------------------------------------------
Operating Days Available Days Utilization (1) Average Average
Revenue per Operating
Day (2) Expense per
Day (3)
------
Domestic Offshore 164 333 49.2% $63,091 $16,240
International Offshore 147 296 49.7% 84,313 44,767
International Liftboats 244 666 36.6% 19,643 5,659
Three Months Ended December 31, 2014 (Predecessor)
-------------------------------------------------
Operating Days Available Days Utilization (1) Average Average
Revenue per Operating
Day (2) Expense per
Day (3)
------
Domestic Offshore 850 1,329 64.0% $106,166 $44,623
International Offshore 490 736 66.6% 131,849 73,387
International Liftboats 859 2,116 40.6% 27,733 7,630
(1) Utilization is defined as the
total number of days our rigs or
liftboats, as applicable, were
under contract, known as
operating days, in the period as
a percentage of the total number
of available days in the period.
Days during which our rigs and
liftboats were undergoing major
refurbishments, upgrades or
construction, and days during
which our rigs and liftboats are
cold stacked, are not counted as
available days. Days during which
our liftboats are in the shipyard
undergoing drydocking or
inspection are considered
available days for the purposes
of calculating utilization.
(2) Average revenue per rig or
liftboat per day is defined as
revenue earned by our rigs or
liftboats, as applicable, in the
period divided by the total
number of operating days for our
rigs or liftboats, as applicable,
in the period.
(3) Average operating expense per rig
or liftboat per day is defined as
operating expenses, excluding
depreciation and amortization,
incurred by our rigs or
liftboats, as applicable, in the
period divided by the total
number of available days in the
period. We use available days to
calculate average operating
expense per rig or liftboat per
day rather than operating days,
which are used to calculate
average revenue per rig or
liftboat per day, because we
incur operating expenses on our
rigs and liftboats even when they
are not under contract and
earning a dayrate.
HERCULES OFFSHORE, INC. AND SUBSIDIARIES
ANNUAL SELECTED FINANCIAL AND OPERATING DATA - (Continued)
(Dollars in thousands, except per day amounts)
(Unaudited)
Period from November 6, 2015 to December 31, 2015 (Successor)
------------------------------------------------------------
Operating Days Available Days Utilization (1) Average Average
Revenue per Operating
Day (2) Expense per
Day (3)
------
Domestic Offshore 159 495 32.1% $62,006 $18,113
International Offshore 220 440 50.0% 78,732 32,716
International Liftboats 298 990 30.1% 17,658 6,378
Period from January 1, 2015 to November 6, 2015 (Predecessor)
------------------------------------------------------------
Operating Days Available Days Utilization (1) Average Average
Revenue per Operating
Day (2) Expense per
Day (3)
------
Domestic Offshore 1,497 2,867 52.2% $87,714 $33,233
International Offshore 1,221 2,480 49.2% 92,906 52,940
International Liftboats 2,776 6,686 41.5% 21,059 6,793
Twelve Months Ended December 31, 2014 (Predecessor)
--------------------------------------------------
Operating Days Available Days Utilization (1) Average Average
Revenue per Operating
Day (2) Expense per
Day (3)
------
Domestic Offshore 4,624 6,243 74.1% $107,528 $41,871
International Offshore 2,025 2,875 70.4% 143,944 72,066
International Liftboats 4,332 8,395 51.6% 25,752 8,892
(1) Utilization is
defined as the total
number of days our
rigs or liftboats,
as applicable, were
under contract,
known as operating
days, in the period
as a percentage of
the total number of
available days in
the period. Days
during which our
rigs and liftboats
were undergoing
major
refurbishments,
upgrades or
construction, and
days during which
our rigs and
liftboats are cold
stacked, are not
counted as available
days. Days during
which our liftboats
are in the shipyard
undergoing
drydocking or
inspection are
considered available
days for the
purposes of
calculating
utilization.
(2) Average revenue per
rig or liftboat per
day is defined as
revenue earned by
our rigs or
liftboats, as
applicable, in the
period divided by
the total number of
operating days for
our rigs or
liftboats, as
applicable, in the
period.
(3) Average operating
expense per rig or
liftboat per day is
defined as operating
expenses, excluding
depreciation and
amortization,
incurred by our rigs
or liftboats, as
applicable, in the
period divided by
the total number of
available days in
the period. We use
available days to
calculate average
operating expense
per rig or liftboat
per day rather than
operating days,
which are used to
calculate average
revenue per rig or
liftboat per day,
because we incur
operating expenses
on our rigs and
liftboats even when
they are not under
contract and earning
a dayrate.
Hercules Offshore, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(In thousands, except per share data)
We report our financial results in accordance with generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP performance measures and ratios may provide users of this financial
information additional meaningful information. Non-GAAP financial measures we may present from time to time are revenue, operating income, income from continuing operations, net income or diluted earnings per share
excluding certain charges or amounts. These adjusted amounts are not a measure of financial performance under GAAP. Accordingly, they should not be considered as a substitute for revenue, operating income, income from
continuing operations, net income, earnings per share or other income data prepared in accordance with GAAP. See the tables below for supplemental financial data and corresponding reconciliations to GAAP financial measures
for the periods January 1, 2015 to November 6, 2015, October 1, 2015 to November 6, 2015 and November 6, 2015 to December 31, 2015 and the three and twelve months ended December 31, 2014. Non-GAAP financial measures
should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. The non-GAAP measures included in this press release have been reconciled to the nearest
GAAP measure in the following tables:
Successor Predecessor
--------- -----------
Period from Period from Three Months
November 6, October 1, Ended
2015 to 2015 to December 31,
December 31, November 6, 2014
2015 2015
---- ----
Operating Loss:
GAAP Operating Loss $(8,887) $(16,954) $(125,322)
Adjustment - 2,890 (b) 117,001 (d)
---
Non-GAAP Operating Loss $(8,887) $(14,064) $(8,321)
======= ======== =======
Other Expense:
GAAP Other Expense $(14,054) $(342,728) $(25,213)
Adjustment 1,330 (a) 342,741 (c) -
----- ------- ---
Non-GAAP Other Expense $(12,724) $13 $(25,213)
======== === ========
Provision for Income Taxes:
GAAP Provision for Income Taxes $(728) $(2,096) $(3,584)
Tax Adjustment - - -
Non-GAAP Provision for Income Taxes $(728) $(2,096) $(3,584)
===== ======= =======
Net Loss:
GAAP Net Loss $(23,669) $(361,778) $(154,119)
Total Adjustment 1,330 345,631 117,001
----- ------- -------
Non-GAAP Net Loss $(22,339) $(16,147) $(37,118)
======== ======== ========
Diluted Loss per Share:
GAAP Diluted Loss per Share $(1.18) $(2.24) $(0.96)
Adjustment per Share 0.06 2.14 0.73
---- ---- ----
Non-GAAP Diluted Loss per Share $(1.12) $(0.10) $(0.23)
====== ====== ======
(a) This amount represents a $1.3 million
charge for reorganization items related to
professional fees.
(b) This amount represents an $8.1 million
charge for stock-based compensation due to
bankruptcy and a $5.2 million gain on
settlement of a contractual dispute.
(c) This amount represents a $342.7 million
charge for reorganization items which
includes a $1.0 billion non-cash net loss
due to fresh start accounting adjustments, a
$686.6 million non-cash gain on settlement
of liabilities subject to compromise (debt
forgiveness) and a $10.0 million charge for
other reorganization items related to
professional fees.
(d) This amount represents a $117.0 million
non-cash impairment charge of property and
equipment.
Hercules Offshore, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Measures (Continued)
(Unaudited)
(In thousands, except per share data)
Successor Predecessor
--------- -----------
Period from Period from Twelve Months
November 6, January 1, Ended
2015 to 2015 to December 31,
December 31, November 6, 2014
2015 2015
---- ----
Operating Income (Loss):
GAAP Operating Loss $(8,887) $(175,629) $(88,499)
Adjustment - 25,333 (b) 176,888 (d)
---
Non-GAAP Operating Income (Loss) $(8,887) $(150,296) $88,389
======= ========= =======
Other Expense:
GAAP Other Expense $(14,054) $(419,823) $(119,106)
Adjustment 1,330 (a) 358,934 (c) 19,925 (e)
----- ------- ------
Non-GAAP Other Expense $(12,724) $(60,889) $(99,181)
======== ======== ========
Provision for Income Taxes:
GAAP Provision for Income Taxes $(728) $(7,042) $(8,505)
Tax Adjustment - - -
Non-GAAP Provision for Income Taxes $(728) $(7,042) $(8,505)
===== ======= =======
Net Loss:
GAAP Net Loss $(23,669) $(602,494) $(216,110)
Total Adjustment 1,330 384,267 196,813
----- ------- -------
Non-GAAP Net Loss $(22,339) $(218,227) $(19,297)
======== ========= ========
Diluted Loss per Share:
GAAP Diluted Loss per Share $(1.18) $(3.73) $(1.35)
Adjustment per Share 0.06 2.38 1.23
---- ---- ----
Non-GAAP Diluted Loss per Share $(1.12) $(1.35) $(0.12)
====== ====== ======
(a) This amount represents a $1.3 million
charge for reorganization items related to
professional fees.
(b) This amount represents $18.9 million of
costs related to pre-petition financing and
restructuring activities, an $8.1 million
charge for stock-based compensation due to
bankruptcy, a $5.2 million gain on settlement
of a contractual dispute and a $3.6 million
net loss on the sale of assets, including six
cold stacked drilling rigs.
(c) This amount represents a $357.1 million
charge for reorganization items which
includes a $1.0 billion non-cash net loss
due to fresh start accounting adjustments, a
$686.6 million non-cash gain on settlement
of liabilities subject to compromise (debt
forgiveness), an $11.5 million non-cash
charge related to a write-off of unamortized
debt issuance costs and a $12.8 million
charge for other reorganization items related
to professional fees. Additionally, this
(d) This amount represents a $199.5 million
non-cash impairment charge of property and
equipment and a $22.6 million net gain on the
sale of cold stacked drilling rigs.
(e) This amount represents a charge of $19.9
million related to retirement of our 7.125%
senior secured notes and issuance of our
6.75% senior notes.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/hercules-offshore-inc-announces-fourth-quarter-and-full-year-2015-results-300243716.html
SOURCE Hercules Offshore, Inc.
