Cal Dive International has reported third quarter 2008 net income of $45.9 million, or $.44 per diluted share compared to $37.5 million and $.45 per diluted share for the same period of 2007. The increase in net income is primarily due to the profits generated by the Horizon Offshore assets acquired in late 2007.
Quinn Hebert, President and Chief Executive Officer of Cal Dive, stated "Our financial results for the third quarter reflect the strong demand for our integrated services as customers sought to execute their scheduled projects during the third quarter. This quarter was also very challenging due to the impact of hurricanes Gustav and Ike during the month of September. I am very proud of the way our employees responded to the needs of our customers while dealing with the impact on their own personal lives. Our customers continue to prioritize their construction and repair projects and we are well positioned to assist them as we head into the fourth quarter and 2009.
"Strong demand for our services including our customers' requirements for salvage and repair work following the hurricanes led to the increase in our backlog to approximately $506 million as of September 30, 2008. This represents the largest backlog in the history of our company and includes a one year extension to the contract for the Uncle John working offshore in the Gulf of Mexico."
Revenues: Third quarter 2008 revenues increased by $101.8 million to $278.7 million as compared to the third quarter of 2007, primarily due to revenue contributions from the Horizon assets acquired in late 2007. This increase was partially offset by weather downtime due to hurricanes Gustav and Ike.
Gross Profit: Third quarter 2008 gross profit increased by $22.6 million to $92.5 million as compared to the third quarter 2007, primarily due to the acquisition of Horizon. The increase was partially offset by increased depreciation and amortization expense as well as the impact of the hurricanes during the third quarter of 2008 referred to above.
SG&A: Third quarter 2008 SG&A increased by $6.7 million over the third quarter 2007, primarily due to the acquisition of Horizon (including approximately $.9 million of non-cash amortization of related intangible assets), increased employee benefit costs and increased information technology costs.
Net Interest Expense: Third quarter 2008 net interest expense increased by $3.1 million over the third quarter of 2007, due to the term loan borrowings incurred in late 2007 in connection with the acquisition of Horizon.
Income Tax Expense: The effective tax rate for the third quarter 2008 was 32.0% compared to 31.6% for the same period in 2007.
Balance Sheet: Total debt was $335.0 million and cash and cash equivalents were $22.9 million for a net debt position of $312.1 million as of September 30, 2008.
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