Delaware | 0-51582 | 56-2542838 | ||
(State or other jurisdiction | (Commission File Number) | (IRS Employer | ||
of incorporation) | Identification No.) |
9 Greenway Plaza, Suite 2200 | ||
Houston, Texas | 77046 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99.1 | Press release issued by Hercules dated October 27, 2011. |
HERCULES OFFSHORE, INC. |
||||
Date: October 27, 2011 | By: | /s/ Stephen M. Butz | ||
Stephen M. Butz | ||||
Senior Vice President and Chief Financial Officer | ||||
No. | Description | |
99.1
|
Press release issued by Hercules dated October 27, 2011. |
September 30, | December 31, | |||||||
2011 | 2010 | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Current Assets: |
||||||||
Cash and Cash Equivalents |
$ | 127,274 | $ | 136,666 | ||||
Restricted Cash |
13,604 | 11,128 | ||||||
Accounts Receivable, Net |
163,780 | 143,796 | ||||||
Prepaids |
23,651 | 17,142 | ||||||
Current Deferred Tax Asset |
10,572 | 8,488 | ||||||
Other |
16,906 | 11,794 | ||||||
355,787 | 329,014 | |||||||
Property and Equipment, Net |
1,631,661 | 1,634,542 | ||||||
Equity Investment |
34,910 | | ||||||
Other Assets, Net |
31,667 | 31,753 | ||||||
$ | 2,054,025 | $ | 1,995,309 | |||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current Liabilities: |
||||||||
Short-term Debt and Current Portion of Long-term Debt |
$ | 4,768 | $ | 4,924 | ||||
Insurance Notes Payable |
12,987 | 5,984 | ||||||
Accounts Payable |
53,707 | 52,279 | ||||||
Accrued Liabilities |
57,973 | 59,861 | ||||||
Interest Payable |
18,585 | 6,974 | ||||||
Taxes Payable |
6,231 | | ||||||
Other Current Liabilities |
20,942 | 16,716 | ||||||
175,193 | 146,738 | |||||||
Long-term Debt, Net of Current Portion |
838,012 | 853,166 | ||||||
Other Liabilities |
21,869 | 6,716 | ||||||
Deferred Income Taxes |
90,301 | 135,557 | ||||||
Commitments and Contingencies |
||||||||
Stockholders Equity |
928,650 | 853,132 | ||||||
$ | 2,054,025 | $ | 1,995,309 | |||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(As Adjusted) | (As Adjusted) | |||||||||||||||
Revenue |
$ | 162,991 | $ | 157,609 | $ | 492,570 | $ | 460,067 | ||||||||
Costs and Expenses: |
||||||||||||||||
Operating Expenses |
111,372 | 102,310 | 332,081 | 307,626 | ||||||||||||
Depreciation and Amortization |
43,895 | 44,982 | 128,699 | 140,382 | ||||||||||||
General and Administrative |
10,757 | 14,158 | 40,403 | 40,595 | ||||||||||||
166,024 | 161,450 | 501,183 | 488,603 | |||||||||||||
Operating Loss |
(3,033 | ) | (3,841 | ) | (8,613 | ) | (28,536 | ) | ||||||||
Other Income (Expense): |
||||||||||||||||
Interest Expense |
(20,389 | ) | (20,752 | ) | (59,035 | ) | (62,437 | ) | ||||||||
Expense of Credit Agreement Fees |
| | (455 | ) | | |||||||||||
Equity in Losses of Equity Investment |
(34 | ) | | (225 | ) | | ||||||||||
Other, Net |
(1,561 | ) | (22 | ) | (2,583 | ) | 3,144 | |||||||||
Loss Before Income Taxes |
(25,017 | ) | (24,615 | ) | (70,911 | ) | (87,829 | ) | ||||||||
Income Tax Benefit |
7,973 | 8,478 | 25,921 | 38,267 | ||||||||||||
Loss from Continuing Operations |
(17,044 | ) | (16,137 | ) | (44,990 | ) | (49,562 | ) | ||||||||
Income (Loss) from Discontinued Operations, Net of Taxes |
52 | 1,076 | (9,651 | ) | (439 | ) | ||||||||||
Net Loss |
$ | (16,992 | ) | $ | (15,061 | ) | $ | (54,641 | ) | $ | (50,001 | ) | ||||
Basic Loss Per Share: |
||||||||||||||||
Loss from Continuing Operations |
$ | (0.12 | ) | $ | (0.14 | ) | $ | (0.35 | ) | $ | (0.43 | ) | ||||
Income (Loss) from Discontinued Operations |
| 0.01 | (0.08 | ) | (0.01 | ) | ||||||||||
Net Loss |
$ | (0.12 | ) | $ | (0.13 | ) | $ | (0.43 | ) | $ | (0.44 | ) | ||||
Diluted Loss Per Share: |
||||||||||||||||
Loss from Continuing Operations |
$ | (0.12 | ) | $ | (0.14 | ) | $ | (0.35 | ) | $ | (0.43 | ) | ||||
Income (Loss) from Discontinued Operations |
| 0.01 | (0.08 | ) | (0.01 | ) | ||||||||||
Net Loss |
$ | (0.12 | ) | $ | (0.13 | ) | $ | (0.43 | ) | $ | (0.44 | ) | ||||
Weighted Average Shares Outstanding: |
||||||||||||||||
Basic |
137,887 | 114,774 | 128,000 | 114,742 | ||||||||||||
Diluted |
137,887 | 114,774 | 128,000 | 114,742 |
Nine Months Ended September 30, | ||||||||
2011 | 2010 | |||||||
Cash Flows from Operating Activities: |
||||||||
Net Loss |
$ | (54,641 | ) | $ | (50,001 | ) | ||
Adjustments to Reconcile Net Loss to Net Cash Provided by
Operating Activities: |
||||||||
Depreciation and Amortization |
130,355 | 144,758 | ||||||
Stock-Based Compensation Expense |
3,898 | 2,799 | ||||||
Deferred Income Taxes |
(47,458 | ) | (38,639 | ) | ||||
Provision (Benefit) for Doubtful Accounts Receivable |
(12,240 | ) | 80 | |||||
Amortization of Deferred Financing Fees |
2,877 | 2,493 | ||||||
Amortization of Original Issue Discount |
3,305 | 3,041 | ||||||
Non-Cash Loss on Derivatives |
3,065 | 1,987 | ||||||
(Gain) Loss on Disposal of Assets and Businesses, Net |
5,495 | (10,180 | ) | |||||
Other |
(197 | ) | (381 | ) | ||||
Net Change in Operating Assets and Liabilities |
23,908 | (36,277 | ) | |||||
Net Cash Provided by Operating Activities |
58,367 | 19,680 | ||||||
Cash Flows from Investing Activities: |
||||||||
Acquisition of Seahawk Assets |
(25,000 | ) | | |||||
Additions of Property and Equipment |
(33,508 | ) | (16,353 | ) | ||||
Deferred Drydocking Expenditures |
(12,859 | ) | (10,972 | ) | ||||
Cash Paid for Equity Investment |
(34,155 | ) | | |||||
Proceeds from Sale of Assets and Businesses, Net |
58,440 | 15,764 | ||||||
Increase in Restricted Cash |
(2,476 | ) | (9,466 | ) | ||||
Net Cash Used in Investing Activities |
(49,558 | ) | (21,027 | ) | ||||
Cash Flows from Financing Activities: |
||||||||
Long-term Debt Repayments |
(18,615 | ) | (5,233 | ) | ||||
Payment of Debt Issuance Costs |
(2,109 | ) | | |||||
Other |
2,523 | 396 | ||||||
Net Cash Used in Financing Activities |
(18,201 | ) | (4,837 | ) | ||||
Net Decrease in Cash and Cash Equivalents |
(9,392 | ) | (6,184 | ) | ||||
Cash and Cash Equivalents at Beginning of Period |
136,666 | 140,828 | ||||||
Cash and Cash Equivalents at End of Period |
$ | 127,274 | $ | 134,644 | ||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(As Adjusted) | (As Adjusted) | |||||||||||||||
Domestic Offshore: |
||||||||||||||||
Number of rigs (as of end of period) |
43 | 25 | 43 | 25 | ||||||||||||
Revenue |
$ | 60,246 | $ | 25,058 | $ | 142,688 | $ | 88,163 | ||||||||
Operating expenses |
53,184 | 38,701 | 140,390 | 115,082 | ||||||||||||
Depreciation and amortization expense |
17,977 | 17,277 | 49,920 | 50,986 | ||||||||||||
General and administrative expenses |
1,909 | 1,146 | 7,499 | 4,807 | ||||||||||||
Operating loss |
$ | (12,824 | ) | $ | (32,066 | ) | $ | (55,121 | ) | $ | (82,712 | ) | ||||
International Offshore: |
||||||||||||||||
Number of rigs (as of end of period) |
9 | 9 | 9 | 9 | ||||||||||||
Revenue |
$ | 48,965 | $ | 74,429 | $ | 196,131 | $ | 221,364 | ||||||||
Operating expenses |
29,098 | 31,065 | 99,803 | 98,394 | ||||||||||||
Depreciation and amortization expense |
12,913 | 14,404 | 39,469 | 43,808 | ||||||||||||
General and administrative expenses |
(5,992 | ) | 2,067 | (6,968 | ) | 5,546 | ||||||||||
Operating income |
$ | 12,946 | $ | 26,893 | $ | 63,827 | $ | 73,616 | ||||||||
Inland: |
||||||||||||||||
Number of barges (as of end of period) |
17 | 17 | 17 | 17 | ||||||||||||
Revenue |
$ | 8,124 | $ | 5,745 | $ | 21,251 | $ | 15,676 | ||||||||
Operating expenses |
3,535 | 8,279 | 16,693 | 20,359 | ||||||||||||
Depreciation and amortization expense |
3,310 | 4,991 | 11,338 | 18,736 | ||||||||||||
General and administrative expenses |
356 | 1,103 | 869 | (1,756 | ) | |||||||||||
Operating income (loss) |
$ | 923 | $ | (8,628 | ) | $ | (7,649 | ) | $ | (21,663 | ) | |||||
Domestic Liftboats: |
||||||||||||||||
Number of liftboats (as of end of period) |
41 | 41 | 41 | 41 | ||||||||||||
Revenue |
$ | 16,718 | $ | 24,612 | $ | 44,209 | $ | 53,950 | ||||||||
Operating expenses |
11,419 | 11,314 | 31,837 | 31,481 | ||||||||||||
Depreciation and amortization expense |
4,136 | 3,314 | 11,637 | 11,182 | ||||||||||||
General and administrative expenses |
548 | 560 | 1,579 | 1,436 | ||||||||||||
Operating income (loss) |
$ | 615 | $ | 9,424 | $ | (844 | ) | $ | 9,851 | |||||||
International Liftboats: |
||||||||||||||||
Number of liftboats (as of end of period) |
24 | 24 | 24 | 24 | ||||||||||||
Revenue |
$ | 28,938 | $ | 27,765 | $ | 88,291 | $ | 80,914 | ||||||||
Operating expenses |
14,136 | 12,951 | 43,358 | 42,310 | ||||||||||||
Depreciation and amortization expense |
4,905 | 4,199 | 14,379 | 13,258 | ||||||||||||
General and administrative expenses |
1,374 | 1,184 | 4,470 | 4,119 | ||||||||||||
Operating income |
$ | 8,523 | $ | 9,431 | $ | 26,084 | $ | 21,227 | ||||||||
Total Company: |
||||||||||||||||
Revenue |
$ | 162,991 | $ | 157,609 | $ | 492,570 | $ | 460,067 | ||||||||
Operating expenses |
111,372 | 102,310 | 332,081 | 307,626 | ||||||||||||
Depreciation and amortization |
43,895 | 44,982 | 128,699 | 140,382 | ||||||||||||
General and administrative |
10,757 | 14,158 | 40,403 | 40,595 | ||||||||||||
Operating loss |
(3,033 | ) | (3,841 | ) | (8,613 | ) | (28,536 | ) | ||||||||
Interest expense |
(20,389 | ) | (20,752 | ) | (59,035 | ) | (62,437 | ) | ||||||||
Expense of credit agreement fees |
| | (455 | ) | | |||||||||||
Equity in losses of equity investment |
(34 | ) | | (225 | ) | | ||||||||||
Other, net |
(1,561 | ) | (22 | ) | (2,583 | ) | 3,144 | |||||||||
Loss before income taxes |
(25,017 | ) | (24,615 | ) | (70,911 | ) | (87,829 | ) | ||||||||
Income tax benefit |
7,973 | 8,478 | 25,921 | 38,267 | ||||||||||||
Loss from continuing operations |
(17,044 | ) | (16,137 | ) | (44,990 | ) | (49,562 | ) | ||||||||
Income (Loss) from discontinued operations, net of taxes |
52 | 1,076 | (9,651 | ) | (439 | ) | ||||||||||
Net loss |
$ | (16,992 | ) | $ | (15,061 | ) | $ | (54,641 | ) | $ | (50,001 | ) | ||||
Three Months Ended September 30, 2011 | ||||||||||||||||||||
Average | ||||||||||||||||||||
Average | Operating | |||||||||||||||||||
Revenue per | Expense per | |||||||||||||||||||
Operating Days | Available Days | Utilization (1) | Day (2) | Day (3) | ||||||||||||||||
Domestic Offshore |
1,228 | 1,656 | 74.2 | % | $ | 49,060 | $ | 32,116 | ||||||||||||
International Offshore |
508 | 736 | 69.0 | % | 96,388 | 39,535 | ||||||||||||||
Inland |
262 | 276 | 94.9 | % | 31,008 | 12,808 | ||||||||||||||
Domestic Liftboats |
2,246 | 3,220 | 69.8 | % | 7,443 | 3,546 | ||||||||||||||
International Liftboats |
1,357 | 2,116 | 64.1 | % | 21,325 | 6,681 |
Three Months Ended September 30, 2010 | ||||||||||||||||||||
Average | ||||||||||||||||||||
Average | Operating | |||||||||||||||||||
Revenue per | Expense per | |||||||||||||||||||
Operating Days | Available Days | Utilization (1) | Day (2) | Day (3) | ||||||||||||||||
Domestic Offshore |
637 | 1,012 | 62.9 | % | $ | 39,338 | $ | 38,242 | ||||||||||||
International Offshore |
538 | 828 | 65.0 | % | 138,344 | 37,518 | ||||||||||||||
Inland |
269 | 276 | 97.5 | % | 21,357 | 29,996 | ||||||||||||||
Domestic Liftboats |
3,203 | 3,496 | 91.6 | % | 7,684 | 3,236 | ||||||||||||||
International Liftboats |
1,198 | 2,116 | 56.6 | % | 23,176 | 6,121 |
Nine Months Ended September 30, 2011 | ||||||||||||||||||||
Average | ||||||||||||||||||||
Average | Operating | |||||||||||||||||||
Revenue per | Expense per | |||||||||||||||||||
Operating Days | Available Days | Utilization (1) | Day (2) | Day (3) | ||||||||||||||||
Domestic Offshore |
3,075 | 4,099 | 75.0 | % | $ | 46,403 | $ | 34,250 | ||||||||||||
International Offshore |
1,654 | 2,184 | 75.7 | % | 118,580 | 45,697 | ||||||||||||||
Inland |
739 | 819 | 90.2 | % | 28,756 | 20,382 | ||||||||||||||
Domestic Liftboats |
5,676 | 9,855 | 57.6 | % | 7,789 | 3,231 | ||||||||||||||
International Liftboats |
4,022 | 6,279 | 64.1 | % | 21,952 | 6,905 |
Nine Months Ended September 30, 2010 | ||||||||||||||||||||
Average | ||||||||||||||||||||
Average | Operating | |||||||||||||||||||
Revenue per | Expense per | |||||||||||||||||||
Operating Days | Available Days | Utilization (1) | Day (2) | Day (3) | ||||||||||||||||
Domestic Offshore |
2,426 | 3,074 | 78.9 | % | $ | 36,341 | $ | 37,437 | ||||||||||||
International Offshore |
1,598 | 2,516 | 63.5 | % | 138,526 | 39,107 | ||||||||||||||
Inland |
759 | 819 | 92.7 | % | 20,653 | 24,858 | ||||||||||||||
Domestic Liftboats |
7,433 | 10,374 | 71.7 | % | 7,258 | 3,035 | ||||||||||||||
International Liftboats |
3,596 | 6,430 | 55.9 | % | 22,501 | 6,580 |
(1) | Utilization is defined as the total number of days our rigs or liftboats, as applicable, were under contract, known as operating days, in the period as a percentage of the total number of available days in the period. Days during which our rigs and liftboats were undergoing major refurbishments, upgrades or construction, and days during which our rigs and liftboats are cold-stacked, are not counted as available days. Days during which our liftboats are in the shipyard undergoing drydocking or inspection are considered available days for the purposes of calculating utilization. | |
(2) | Average revenue per rig or liftboat per day is defined as revenue earned by our rigs or liftboats, as applicable, in the period divided by the total number of operating days for our rigs or liftboats, as applicable, in the period. | |
(3) | Average operating expense per rig or liftboat per day is defined as operating expenses, excluding depreciation and amortization, incurred by our rigs or liftboats, as applicable, in the period divided by the total number of available days in the period. We use available days to calculate average operating expense per rig or liftboat per day rather than operating days, which are used to calculate average revenue per rig or liftboat per day, because we incur operating expenses on our rigs and liftboats even when they are not under contract and earning a dayrate. In addition, the operating expenses we incur on our rigs and liftboats per day when they are not under contract are typically lower than the per day expenses we incur when they are under contract. |