Cal Dive Reports Third Quarter 2009 Results
Cal Dive International has reported third quarter 2009 net income of $32.9 million, or $.35 per diluted share compared to $45.9 million and $.43 per diluted share for the same period of 2008, which was a record quarter for the Company. The third quarter of 2009 financial performance was driven primarily by the Company’s continued strong project execution offshore. The decrease in net income compared to third quarter of 2008 is primarily due to lower levels of new construction activity in the Gulf of Mexico and a decline in work for a large LNG project located offshore Boston, where a significant portion of the work had been performed during the third quarter of 2008. This decrease was partially offset by increased pipelay activity in Mexico and China and increased hurricane repair activity in the Gulf of Mexico.
Quinn Hébert, President and Chief Executive Officer of Cal Dive, stated, "Through the hard work of our men and women offshore we were able to achieve another quarter of excellent offshore execution that resulted in solid financial performance. We completed our large pipelay project in Mexico during the quarter and we were awarded our second contract in China following the successful completion of our first project there earlier this year. We look forward to continuing to grow our business in these markets. Our international revenues have increased by nearly 40% during the first nine months of 2009 as compared to the same period of 2008.
"We were also pleased to announce the successful completion of Helix’s secondary public offering of our common stock during the quarter. This offering followed an earlier Helix secondary offering completed in June of this year. Today, Helix owns less than 1% of our common stock. This should prove to be a positive development for Cal Dive’s stockholders as it increases the liquidity of our common stock.
"As expected, the fourth quarter is shaping up to be slower as our customers look to avoid the winter weather in the Gulf of Mexico and have already spent the majority of their capital budgets for the year. Our backlog as of September 30th was $213 million and approximately 53% of that will be performed during the fourth quarter of this year, with 38% to be performed in 2010."
- Backlog: Contracted backlog was $213 million as of September 30, 2009 compared to a backlog of $284 million at June 30, 2009 and $506 million as of September 30, 2008.
- Revenues: Third quarter 2009 revenues decreased by $64.1 million to $214.6 million as compared to the third quarter of 2008, primarily due to decreased new construction activity. This was partially offset by increased pipelay activity in Mexico and China and hurricane repair activity in the Gulf of Mexico.
- Gross Profit: Third quarter 2009 gross profit decreased by $22.4 million to $70.1 million as compared to the third quarter of 2008 due the same reasons cited above.
- SG&A: Third quarter 2009 SG&A decreased by $2.2 million compared to the third quarter of 2008. SG&A as a percentage of revenue for the third quarter 2009 was 8.2% compared to 7.1% for third quarter of 2008. The percentage increase was primarily due to the decrease in revenues partially offset by the decrease in amount of SG&A.
- Net Interest Expense: Third quarter 2009 net interest expense decreased by $1.8 million over the third quarter of 2008, primarily due to lower variable interest rates associated with outstanding borrowings.
- Income Tax Expense: The effective tax rate for the third quarter of 2009 was 33.2% compared to 32.0% for the third quarter of 2008. The increase is due to a higher percentage of profits being derived from the U.S. tax jurisdiction with a higher tax rate.
- Debt: Total debt was $355.0 million and cash and cash equivalents were $124.6 million for a net debt position of $230.4 million as of September 30, 2009 compared to a net debt position of $288.0 million at June 30, 2009 and $254.4 million at December 31, 2008.
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