Cal Dive's 2Q Revenues Up from GOM Salvage Work, Pipelay Projects
Cal Dive reported second quarter 2009 net income of $28.6 million, or $.30 per diluted share compared to $16.9 million and $.16 per diluted share for the same period of 2008. The increase in net income is primarily due to increased new construction and repair and salvage work in the Gulf of Mexico and new pipelay projects in China and Mexico. Gulf of Mexico salvage and repair activity increased due to the impact from hurricanes Gustav and Ike that struck the region in the late summer of 2008.
Quinn Hébert, President and Chief Executive Officer of Cal Dive, stated, "We had an excellent quarter operationally across all regions which translated to strong financial performance. We continue to execute at a high level domestically in both the new construction and salvage markets and we are especially excited about our project performance in China and Mexico. These two pipelay projects have contributed to Cal Dive increasing its international revenues by nearly 50% in the first half of 2009 as compared to the first half of 2008.
"Another positive development during the quarter was the secondary public offering of our common stock by Helix and our related stock repurchase and retirement of shares at the offering price. These transactions reduced Helix's ownership interest in Cal Dive from approximately 51% to 26%.
"Looking forward, bidding activity remains steady and our vessels and barges should be highly utilized during the third quarter. Our backlog as of June 30th was $284 million and approximately 75% of that will be performed in 2009."
- Backlog: Contracted backlog was $284 million as of June 30, 2009 compared to a backlog of $402 million at March 31, 2009 and $350 million as of December 31, 2008.
- Revenues: Second quarter 2009 revenues increased by $88.3 million to $260.3 million as compared to the second quarter of 2008, primarily due to increased vessel utilization as a result of increased new construction and repair and salvage work in the Gulf of Mexico and increased pipelay activity in international markets.
- Gross Profit: Second quarter 2009 gross profit increased by $23.5 million to $70.8 million as compared to the second quarter of 2008 due the same reasons cited above.
- SG&A: Second quarter 2009 SG&A as a percentage of revenue was 7.0% compared to 10.4% for second quarter of 2008. The percentage decrease was primarily due to the increase in revenues discussed above.
- Provision for Doubtful Accounts: Provision for doubtful accounts was $6.3 million during the second quarter of 2009 relating to the doubtful collection of certain trade receivables recorded on the balance sheet as of June 30, 2009. There was no provision recorded during the second quarter of 2008.
- Net Interest Expense: Second quarter 2009 net interest expense decreased by $1.1 million over the second quarter of 2008, due to lower variable interest rates associated with outstanding borrowings.
- Income Tax Expense: The effective tax rate for the second quarter of 2009 was 31.0% compared to 31.0% for the second quarter of 2008.
- Debt: Total debt was $375.0 million and cash and cash equivalents were $87.0 million for a net debt position of $288.0 million as of June 30, 2009 compared to a net debt position of $303.5 million at March 31, 2009 and $338.6 at June 30, 2008.
- Stockholders' Equity: Total equity at June 30, 2009 is $653.0 million, a decrease of $52.7 million from December 31, 2008. The decrease is primarily due to the repurchase and retirement of 13.6 million shares in January from Helix for $86 million, or $6.34 per share, and an additional 1.7 million shares repurchased and retired in June for $14 million, or $8.50 per share, as part of the public secondary offering by Helix. The decrease is partially offset by earnings through the first six months of 2009.
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