Helix Reports First Quarter 2022 Results
Helix reported adjusted EBITDA2 of
|
Summary of Results ($ in thousands, except per share amounts, unaudited) |
|||||||||||
| Three Months Ended | |||||||||||
| Revenues |
$ |
150,125 |
|
$ |
163,415 |
|
$ |
168,656 |
|
||
| Gross Profit (Loss) |
$ |
(18,609 |
) |
$ |
14,624 |
|
$ |
(5,361 |
) |
||
|
|
(12 |
)% |
|
9 |
% |
|
(3 |
)% |
|||
| Net Loss1 |
$ |
(42,031 |
) |
$ |
(2,878 |
) |
$ |
(25,908 |
) |
||
| Diluted Loss Per Share |
$ |
(0.28 |
) |
$ |
(0.02 |
) |
$ |
(0.17 |
) |
||
| Adjusted EBITDA2 |
$ |
2,526 |
|
$ |
36,168 |
|
$ |
8,764 |
|
||
| Cash and Cash Equivalents3 |
$ |
229,744 |
|
$ |
204,802 |
|
$ |
253,515 |
|
||
| Cash Flows from Operating Activities |
$ |
(17,413 |
) |
$ |
39,869 |
|
$ |
18,865 |
|
||
| Free Cash Flow2 |
$ |
(18,036 |
) |
$ |
38,540 |
|
$ |
17,929 |
|
||
|
1 |
Net loss attributable to common shareholders |
|
|
2 |
Adjusted EBITDA and Free Cash Flow are non-GAAP measures; see reconciliations below |
|
|
3 |
Excludes restricted cash of |
|
Segment Information, Operational and Financial Highlights ($ in thousands, unaudited) |
|||||||||||
| Three Months Ended | |||||||||||
| Revenues: | |||||||||||
| Well Intervention |
$ |
106,367 |
|
$ |
133,768 |
|
$ |
119,177 |
|
||
| Robotics |
|
37,351 |
|
|
22,156 |
|
|
40,865 |
|
||
| Production Facilities |
|
18,294 |
|
|
16,447 |
|
|
20,131 |
|
||
| Intercompany Eliminations |
|
(11,887 |
) |
|
(8,956 |
) |
|
(11,517 |
) |
||
| Total |
$ |
150,125 |
|
$ |
163,415 |
|
$ |
168,656 |
|
||
| Income (Loss) from Operations: | |||||||||||
| Well Intervention |
$ |
(31,758 |
) |
$ |
5,243 |
|
$ |
(21,063 |
) |
||
| Robotics |
|
1,480 |
|
|
(2,934 |
) |
|
3,505 |
|
||
| Production Facilities |
|
5,851 |
|
|
6,514 |
|
|
6,621 |
|
||
| Corporate / Other / Eliminations |
|
(8,550 |
) |
|
(9,378 |
) |
|
(15,923 |
) |
||
| Total |
$ |
(32,977 |
) |
$ |
(555 |
) |
$ |
(26,860 |
) |
||
Segment Results
Well Intervention
Well Intervention revenues decreased
Well Intervention revenues decreased
Robotics
Robotics revenues decreased
Robotics revenues increased
Production Facilities
Production Facilities revenues decreased
Selling, General and Administrative and Other
Selling, General and Administrative
Selling, general and administrative expenses were
Other Income and Expenses
Other expense, net was
Cash Flows
Operating cash flows were
Capital expenditures totaled
Free Cash Flow was
Financial Condition and Liquidity
Cash and cash equivalents were
Conference Call Information
Further details are provided in the presentation for Helix’s quarterly teleconference to review its first quarter 2022 results (see the "For the Investor" page of Helix's website, www.helixesg.com). The teleconference, scheduled for
About Helix
Non-GAAP Financial Measures
Management evaluates performance and financial condition using certain non-GAAP measures, primarily EBITDA, Adjusted EBITDA, net debt, net debt to book capitalization and Free Cash Flow. We define EBITDA as earnings before income taxes, net interest expense, gain or loss on extinguishment of long-term debt, net other income or expense, and depreciation and amortization expense. Non-cash impairment losses on goodwill and other long-lived assets and gains and losses on equity investments are also added back if applicable. To arrive at our measure of Adjusted EBITDA, we exclude the gain or loss on disposition of assets and the general provision (release) for current expected credit losses, if any. In addition, we include realized losses from foreign currency exchange contracts not designated as hedging instruments, which are excluded from EBITDA as a component of net other income or expense. Net debt is calculated as long-term debt including current maturities of long-term debt less cash and cash equivalents and restricted cash. Net debt to book capitalization is calculated by dividing net debt by the sum of net debt and shareholders’ equity. We define Free Cash Flow as cash flows from operating activities less capital expenditures, net of proceeds from sale of assets.
We use EBITDA, Adjusted EBITDA and Free Cash Flow to monitor and facilitate internal evaluation of the performance of our business operations, to facilitate external comparison of our business results to those of others in our industry, to analyze and evaluate financial and strategic planning decisions regarding future investments and acquisitions, to plan and evaluate operating budgets, and in certain cases, to report our results to the holders of our debt as required by our debt covenants. We believe that our measures of EBITDA, Adjusted EBITDA and Free Cash Flow provide useful information to the public regarding our operating performance and ability to service debt and fund capital expenditures and may help our investors understand and compare our results to other companies that have different financing, capital and tax structures. Other companies may calculate their measures of EBITDA, Adjusted EBITDA and Free Cash Flow differently from the way we do, which may limit their usefulness as comparative measures. EBITDA, Adjusted EBITDA and Free Cash Flow should not be considered in isolation or as a substitute for, but instead are supplemental to, income from operations, net income, cash flows from operating activities, or other income or cash flow data prepared in accordance with GAAP. Users of this financial information should consider the types of events and transactions that are excluded from these measures. See reconciliation of the non-GAAP financial information presented in this press release to the most directly comparable financial information presented in accordance with GAAP.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks, uncertainties and assumptions that could cause our results to differ materially from those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, any statements regarding the COVID-19 pandemic and oil price volatility and their respective effects and results, our protocols and plans, our current work continuing, the spot market, our spending and cost reduction plans and our ability to manage changes; our strategy; any statements regarding visibility and future utilization; any projections of financial items; any statements regarding future operations expenditures; any statements regarding our plans, strategies and objectives for future operations; any statements regarding our ability to enter into, renew and/or perform commercial contracts; any statements concerning developments; any statements regarding our environmental, social and governance (“ESG”) initiatives; any statements regarding future economic conditions or performance; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements are subject to a number of known and unknown risks, uncertainties and other factors that could cause results to differ materially from those in the forward-looking statements, including but not limited to the results and effects of the COVID-19 pandemic and actions by governments, customers, suppliers and partners with respect thereto; market conditions; results from acquired properties; demand for our services; the performance of contracts by suppliers, customers and partners; actions by governmental and regulatory authorities; operating hazards and delays, which include delays in delivery, chartering or customer acceptance of assets or terms of their acceptance; our ability to secure and realize backlog; the effectiveness of our ESG initiatives and disclosures; human capital management issues; complexities of global political and economic developments; geologic risks; volatility of oil and gas prices and other risks described from time to time in our reports filed with the
Social Media
From time to time we provide information about Helix on social media, including: Twitter (@Helix_ESG),LinkedIn (www.linkedin.com/company/helix-energy-solutions-group), Facebook (www.facebook.com/HelixEnergySolutionsGroup), Instagram (www.instagram.com/helixenergysolutions) and YouTube (www.youtube.com/user/HelixEnergySolutions).
| Comparative Condensed Consolidated Statements of Operations | |||||||||
| Three Months Ended |
|||||||||
| (in thousands, except per share data) |
2022 |
2021 |
|||||||
| (unaudited) | |||||||||
| Net revenues |
$ |
150,125 |
|
$ |
163,415 |
|
|||
| Cost of sales |
|
168,734 |
|
|
148,791 |
|
|||
| Gross profit (loss) |
|
(18,609 |
) |
|
14,624 |
|
|||
| Selling, general and administrative expenses |
|
(14,368 |
) |
|
(15,179 |
) |
|||
| Loss from operations |
|
(32,977 |
) |
|
(555 |
) |
|||
| Net interest expense |
|
(5,174 |
) |
|
(6,053 |
) |
|||
| Other income (expense), net |
|
(3,881 |
) |
|
1,617 |
|
|||
| Royalty income and other |
|
2,141 |
|
|
2,057 |
|
|||
| Loss before income taxes |
|
(39,891 |
) |
|
(2,934 |
) |
|||
| Income tax provision |
|
2,140 |
|
|
116 |
|
|||
| Net loss |
|
(42,031 |
) |
|
(3,050 |
) |
|||
| Net loss attributable to redeemable noncontrolling interests |
|
- |
|
|
(172 |
) |
|||
| Net loss attributable to common shareholders |
$ |
(42,031 |
) |
$ |
(2,878 |
) |
|||
| Loss per share of common stock: | |||||||||
| Basic |
$ |
(0.28 |
) |
$ |
(0.02 |
) |
|||
| Diluted |
$ |
(0.28 |
) |
$ |
(0.02 |
) |
|||
| Weighted average common shares outstanding: | |||||||||
| Basic |
|
151,142 |
|
|
149,935 |
|
|||
| Diluted |
|
151,142 |
|
|
149,935 |
|
|||
| Comparative Condensed Consolidated Balance Sheets | |||||||||
| (in thousands) | (unaudited) | ||||||||
| ASSETS | |||||||||
| Current Assets: | |||||||||
| Cash and cash equivalents (1) |
$ |
229,744 |
|
$ |
253,515 |
|
|||
| Restricted cash (1) |
|
72,934 |
|
|
73,612 |
|
|||
| Accounts receivable, net |
|
141,778 |
|
|
144,137 |
|
|||
| Other current assets |
|
59,274 |
|
|
58,274 |
|
|||
| Total Current Assets |
|
503,730 |
|
|
529,538 |
|
|||
| Property and equipment, net |
|
1,610,052 |
|
|
1,657,645 |
|
|||
| Operating lease right-of-use assets |
|
150,894 |
|
|
104,190 |
|
|||
| Other assets, net |
|
42,694 |
|
|
34,655 |
|
|||
| Total Assets |
$ |
2,307,370 |
|
$ |
2,326,028 |
|
|||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
| Current Liabilities: | |||||||||
| Accounts payable |
$ |
97,531 |
|
$ |
87,959 |
|
|||
| Accrued liabilities |
|
74,873 |
|
|
91,712 |
|
|||
| Current maturities of long-term debt (1) |
|
43,117 |
|
|
42,873 |
|
|||
| Current operating lease liabilities |
|
41,464 |
|
|
55,739 |
|
|||
| Total Current Liabilities |
|
256,985 |
|
|
278,283 |
|
|||
| Long-term debt (1) |
|
258,496 |
|
|
262,137 |
|
|||
| Operating lease liabilities |
|
112,507 |
|
|
50,198 |
|
|||
| Deferred tax liabilities |
|
86,244 |
|
|
86,966 |
|
|||
| Other non-current liabilities |
|
392 |
|
|
975 |
|
|||
| Shareholders' equity |
|
1,592,746 |
|
|
1,647,469 |
|
|||
| Total Liabilities and Equity |
$ |
2,307,370 |
|
$ |
2,326,028 |
|
|||
|
(1) |
Negative net debt of |
|
|
|||||||||||||
| Reconciliation of Non-GAAP Measures | |||||||||||||
| Three Months Ended | |||||||||||||
| (in thousands, unaudited) | |||||||||||||
| Reconciliation from Net Loss to Adjusted EBITDA: | |||||||||||||
| Net loss |
$ |
(42,031 |
) |
$ |
(3,050 |
) |
$ |
(25,908 |
) |
||||
| Adjustments: | |||||||||||||
| Income tax provision (benefit) |
|
2,140 |
|
|
116 |
|
|
(6,048 |
) |
||||
| Net interest expense |
|
5,174 |
|
|
6,053 |
|
|
5,301 |
|
||||
| Loss on extinguishment of long-term debt |
|
- |
|
|
- |
|
|
12 |
|
||||
| Other (income) expense, net |
|
3,881 |
|
|
(1,617 |
) |
|
52 |
|
||||
| Depreciation and amortization |
|
33,488 |
|
|
34,566 |
|
|
35,288 |
|
||||
| EBITDA |
|
2,652 |
|
|
36,068 |
|
|
8,697 |
|
||||
| Adjustments: | |||||||||||||
| General provision (release) for current expected credit losses |
|
(126 |
) |
|
100 |
|
|
67 |
|
||||
| Adjusted EBITDA |
$ |
2,526 |
|
$ |
36,168 |
|
$ |
8,764 |
|
||||
| Free Cash Flow: | |||||||||||||
| Cash flows from operating activities |
$ |
(17,413 |
) |
$ |
39,869 |
|
$ |
18,865 |
|
||||
| Less: Capital expenditures, net of proceeds from sale of assets |
|
(623 |
) |
|
(1,329 |
) |
|
(936 |
) |
||||
| Free Cash Flow |
$ |
(18,036 |
) |
$ |
38,540 |
|
$ |
17,929 |
|
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20220425005991/en/
email: estaffeldt@helixesg.com
Ph: 281-618-0465
Source: