Bad Weather Keeps Cal Dive in Red
Cal Dive International, Inc. generated a loss for the third quarter 2013 of $3.8 million, or $0.04 per diluted share, excluding a $13.0 million after-tax non-cash impairment charge primarily related to four domestic construction barges.
This compares to a loss in the prior year third quarter of $6.6 million, or $0.07 per diluted share, excluding a $14.8 million after-tax non-cash impairment charge and a $5.4 million after-tax non-cash benefit related to the fair value adjustment of the Company’s convertible debt. Including the non-cash impairment charges, the Company reported a loss of $16.8 million, or $0.18 per diluted share for the third quarter 2013 compared to a loss in the prior year third quarter of $15.9 million, or $0.17 per diluted share. For the third quarter 2013, the Company reported revenues of $155.2 million and EBITDA of $13.4 million compared to revenues of $138.1 million and EBITDA of $11.0 million for the third quarter 2012.
Commenting on the results, Cal Dive’s Chairman, President and Chief Executive Officer, Quinn Hébert, stated, “The third quarter was significantly impacted by un-seasonable weather throughout the Gulf of Mexico, including Hurricane Ingrid, that delayed the start of our offshore construction work in Mexico, as well as several tropical depressions that effectively caused nearly a month of cumulative downtime in the domestic market. Additionally, we continue to face the same challenging market in the shallow water U.S. Gulf of Mexico, with a competitive pricing environment and lower margins on awarded work.
“Our improvement over the third quarter 2012 was driven by our projects in Mexico, although the offshore work did not begin until late in the third quarter. Overall, the execution on our combined projects is progressing as anticipated and we are currently operating five assets in the region for Pemex. We expect bidding activity for Pemex work to continue to be strong in the coming months.”
Hébert continued, “Looking forward, we expect improved financial performance over the next two quarters compared to the fourth quarter last year and the first quarter this year driven by our project execution in Mexico and steady work in Australia, which is commencing its summer work season. The timing of financial improvement resulting from the Pemex awards between the fourth quarter of this year and the first quarter 2014 will ultimately depend on the percentage of each project completed by year-end. We will continue to focus on international growth while we navigate through the challenges presented by the domestic shallow water market.”
Press Release, November 08, 2013