EX-99.1 2 d189326dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

Summary of Bidder Interest

 

 

 

    

Latest Bid

   

Comments

   >   $470mm(1)(3) (excl. Saudi fleet)   
Bidder A   

•    $250mm equity(2)

    >   Transferability of Highlander contract key requirement of bid
  

•    $220mm cash

   
   >   $423mm(3)   
Bidder B   

•    $250mm take-back debt

    >   Transferability of Highlander contract key requirement of bid
  

•    $173mm cash

   
Bidder C    >   $450mm    >   Majority of funding not accounted for
  

•    $450mm cash

   
   >   $375mm(3)   
Bidder D   

•    $341mm in cash

    >   Bid does not include Highlander
  

•    $33mm in stake in SPV

   

 

 

Note: All bids exclude $12mm of professional fees.

(1) Excludes Hercules 260.
(2) +/- 10% collar.
(3) Excludes Hercules 208, 267 and liftboats.

 

1

Hercules Offshore, Inc. - Strategic Review Process Projections(1) 5/2/16

 

$000    2016E     2017E     2018E     2019E  

Income Statement

         

Revenues

    $ 238,085      $ 450,628      $ 526,032      $ 592,448   

Operating Costs

      210,485        294,299        324,035        334,257   
  

 

 

    

 

 

    

 

 

    

 

 

  

Gross Profit

      27,600        156,330        201,997        258,191   

General & Administrative

      42,901        41,109        41,749        43,075   
  

 

 

    

 

 

    

 

 

    

 

 

  

EBITDA

      (15,301 )      115,220        160,248        215,115   

Depreciation and Amortization

      33,036        45,500        58,601        75,548   

Impairment of PP&E

      —          —          —          —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating Income

      (48,337 )      69,720        101,647        139,567   

Interest (Expense)

      (52,596 )      (52,800 )      (52,854 )      (52,909 ) 

Other Income (Expenses)

      2,088        378        350        0   
  

 

 

    

 

 

    

 

 

    

 

 

  

Pretax Income

      (98,845 )      17,298        49,142        86,658   

Income Tax (Expense)

      (6,606 )      (13,374 )      (14,105 )      (15,341 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Income (Loss) from Continuing Operations

      (105,451 )      3,924        35,037        71,317   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) The projections included in the Cleansing Materials were created by management and used in connection with a strategic review process as, among another things, an aid for potential buyers in evaluating HERO’s future business prospects. Additionally, these projections were provided to certain holders of debt and equity. Note: Information contained herein is based on accounting principles generally accepted in the United States and certain non-GAAP financial measures and is not indicative of current fair market values.

 

2

Hercules Offshore, Inc. - Strategic Review Process Projections(1) 5/2/16

 

$000    2016E     2017E     2018E     2019E  

Balance Sheet

       

Current Assets

       

Cash and Equivalents(2)

      207,583        178,541        188,871        252,949   

Restricted Cash (Hercules)

      —          —          —          —     

Accounts Receivable, Trade

      89,067        122,986        131,420        158,305   

Accounts Receivable, Other

      1,889        1,889        1,889        1,889   

Prepaid Expenses & Other

      7,328        7,361        7,494        7,494   

Deposits

      14        14        14        14   

Other Current Assets Held For Sale

      —          —          —          —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Current Assets

      305,880        310,791        329,688        420,652   
  

 

 

    

 

 

    

 

 

    

 

 

  

Gross Fixed Assets

      703,518        765,718        847,148        907,298   

Accumulated Depreciation

      (36,628 )      (76,428 )      (129,102 )      (198,485 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net Fixed Assets

      666,890        689,290        718,046        708,813   

Deferred Drydocking

      2,364        2,664        2,976        3,300   

Cash Designated for Debt Retirement/Debt Financing

      —          —          —          —     

Other Assets

      28,197        23,435        18,619        13,747   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Other Assets

      30,561        26,099        21,594        17,047   

Total Assets

    $ 1,003,331      $ 1,026,179      $ 1,069,329      $ 1,146,512   
  

 

 

    

 

 

    

 

 

    

 

 

  

Current Liabilities:

       

Accounts Payable

      37,454        51,358        54,720        55,727   

Insurance Note Payable

      0        0        0        0   

Other Accrued Liabilities

      60,207        60,957        61,332        61,707   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Current Liabilities

      97,661        112,315        116,052        117,434   

Deferred Tax

      0        0        0        0   

Other Liabilities

      12,464        10,681        8,899        7,117   

Long-Term Debt

      433,436        438,199        443,015        447,887   

Common Stock

      (125 )      (125 )      (125 )      (125 ) 

APIC Conversion Feature

      589,015        590,305        591,647        593,042   

Retained Earnings

      (129,120 )      (125,196 )      (90,159 )      (18,842 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total Equity

      459,770        464,984        501,362        574,075   

Total Liabilities & Stockholders’ Equity

    $ 1,003,331      $ 1,026,179      $ 1,069,328      $ 1,146,512   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) The projections included in the Cleansing Materials were created by management and used in connection with a strategic review process as, among another things, an aid for potential buyers in evaluating HERO’s future business prospects. Additionally, these projections were provided to certain holders of debt and equity.
(2) The cash balance as of May 26, 2016 was $275.6 million, which does not include the Highlander escrow account. Note: Information contained herein is based on accounting principles generally accepted in the United States and certain non-GAAP financial measures and is not indicative of current fair market values.

 

3

Hercules Offshore, Inc. - Strategic Review Process Projections(1) 5/2/16

 

$000    2016E     2017E     2018E     2019E  

Cash Flow Statement

         

Cash Flows From Operating Activities:

         

Net Income

      (105,451 )      3,924        35,037        71,317   

Depreciation and Amortization

      33,036        45,500        58,601        75,548   

Stock Based Compensation Expense

      1,290        1,290        1,342        1,395   

Deferred Income Taxes

      32        —          —          —     

Amortization of Deferred Financing Fees

      —          —          —          —     

(Gain)/Loss on Asset Sale

      (78 )      —          —          —     

Impairment of Property and Equipment

      —          —          —          —     

(Gain) on early retirement of debt

      (1,645 )      —          —          —     

Other

      4,788        4,762        4,817        4,872   

Changes in Working Capital

         

Accounts Receivable

      (25,465 )      (33,919 )      (8,434 )      (26,885 ) 

Prepaid expenses and other

      4,613        (33 )      (133 )      —     

Other Operating Assets

      203,426        4,762        4,817        4,872   

Accounts Payable

      (6,162 )      13,904        3,361        1,007   

Other current liabilities

      (6,694 )      750        375        375   

Insurance note payable

      —          —          —          —     

Other Liabilities

      9,182        (1,782 )      (1,782 )      (1,782 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash Flow From Operating Activities

      110,872        39,158        98,000        130,718   

Cash Flows From Investing Activities:

         

Marketable Securities

      —          —          —          —     

Capital Expenditures

      (234,410 )      (62,200 )      (81,430 )      (60,150 ) 

Acquisitions

      —          —          —          —     

Drydocking Costs

      (1,991 )      (6,000 )      (6,240 )      (6,490 ) 

Proceeds from Asset Sales/Insurance

      280        —          —          —     

Deposits (Restricted Cash)

      2,052        —          —          —     

Investments

      —          —          —          —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash Flow From Investing Activities

      (234,069 )      (68,200 )      (87,670 )      (66,640 ) 

Cash Flows From Financing Activities:

         

Principal Payments

      —          —          —          —     

Issuance of Debt

      —          —          —          —     

Issuance of Equity

      —          —          —          —     

Financing Costs

      —          —          —          —     

Cash Designated for Debt Retirement

      —          —          —          —     

Other

      —          —          —          —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash Flow From Financing Activities

      —          —          —          —     

Net Change in Cash

      (123,197 )      (29,042 )      10,330        64,078   

Beginning Cash Balance

      330,780        207,583        178,541        188,871   

Ending Cash Balance

      207,583        178,541        188,871        252,949   

 

(1) The projections included in the Cleansing Materials were created by management and used in connection with a strategic review process as, among another things, an aid for potential buyers in evaluating HERO’s future business prospects. Additionally, these projections were provided to certain holders of debt and equity. Note: Information contained herein is based on accounting principles generally accepted in the United States and certain non-GAAP financial measures and is not indicative of current fair market values.

 

4