Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. |
Form 20-F ý Form 40- F ¨ |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1). |
Yes ¨ No ý |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7). |
Yes ¨ No ý |
TEEKAY CORPORATION | |||
Date: August 1, 2019 | By: | /s/ Vincent Lok | |
Vincent Lok Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
• | GAAP net loss attributable to shareholders of Teekay of $39.5 million, or $0.39 per share, and adjusted net loss attributable to shareholders of Teekay(1) of $13.4 million, or $0.13 per share (excluding items listed in Appendix A to this release). |
• | Total Adjusted EBITDA(1) of $196.6 million. |
• | In May 2019, refinanced Teekay's $498 million 2020 bond maturity with a new $250 million private offering of 9.25% senior secured notes maturing in November 2022, proceeds from the sale of remaining interests in Teekay Offshore, and existing liquidity. |
• | In May 2019, entered into a contract extension for the Banff FPSO unit out to August 2020. |
• | In June 2019, Teekay LNG took delivery of its third, 50 percent-owned ARC7 LNG carrier newbuilding which immediately commenced its 27-year charter contract servicing the Yamal LNG project, and expects the fourth vessel to deliver mid-August 2019. |
Three Months Ended | |||||||
June 30, | March 31, | June 30, | |||||
2019 | 2019 | 2018 | |||||
(in thousands of U.S. dollars, except per share amounts) | (unaudited) | (unaudited) | (unaudited) | ||||
TEEKAY CORPORATION CONSOLIDATED | |||||||
GAAP FINANCIAL COMPARISON | |||||||
Revenues | 457,667 | 481,213 | 405,642 | ||||
Income from vessel operations | 71,463 | 84,232 | 1,921 | ||||
Equity (loss) income | (6,284 | ) | (61,653 | ) | 837 | ||
Net loss attributable to shareholders of Teekay | (39,485 | ) | (84,257 | ) | (28,324 | ) | |
Loss per share attributable to shareholders of Teekay | (0.39 | ) | (0.84 | ) | (0.28 | ) | |
NON-GAAP FINANCIAL COMPARISON | |||||||
Total Adjusted EBITDA(1) | 196,609 | 236,960 | 164,197 | ||||
Adjusted Net Loss attributable to shareholders of Teekay(1) | (13,368 | ) | (12,955 | ) | (21,555 | ) | |
Adjusted Net Loss per share attributable to shareholders of Teekay(1) | (0.13 | ) | (0.13 | ) | (0.21 | ) | |
TEEKAY PARENT | |||||||
NON-GAAP FINANCIAL COMPARISON | |||||||
Teekay Parent Adjusted EBITDA(1) | 3,427 | (1,802 | ) | 16,641 | |||
Total Teekay Parent Free Cash Flow(1) | (6,427 | ) | (13,763 | ) | 798 |
(1) | These are non-GAAP financial measures. Please refer to “Definitions and Non-GAAP Financial Measures” and the Appendices to this release for definitions of these terms and reconciliations of these non-GAAP financial measures as used in this release to the most directly comparable financial measures under United States generally accepted accounting principles (GAAP). |
(1) | This is a non-GAAP financial measures. Please refer to “Definitions and Non-GAAP Financial Measures” and the Appendices to this release for a definition of this term and a reconciliation of this non-GAAP financial measure as used in this release to the most directly comparable financial measures under United States GAAP. |
• | By dialing (877)-260-1479 or (647) 490-5367, if outside North America, and quoting conference ID code 5752076. |
• | By accessing the webcast, which will be available on Teekay’s website at www.teekay.com (the archive will remain on the website for a period of one year). |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||
2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||
Revenues | 457,667 | 481,213 | 405,642 | 938,880 | 799,664 | ||||||||||
Voyage expenses | (98,680 | ) | (103,123 | ) | (94,912 | ) | (201,803 | ) | (180,789 | ) | |||||
Vessel operating expenses | (162,621 | ) | (156,992 | ) | (161,787 | ) | (319,613 | ) | (319,222 | ) | |||||
Time-charter hire expense | (28,817 | ) | (29,838 | ) | (20,648 | ) | (58,655 | ) | (40,059 | ) | |||||
Depreciation and amortization | (73,849 | ) | (72,107 | ) | (67,960 | ) | (145,956 | ) | (135,271 | ) | |||||
General and administrative expenses | (20,868 | ) | (22,972 | ) | (24,470 | ) | (43,840 | ) | (49,153 | ) | |||||
Write-down and loss on sales of vessels | — | (3,328 | ) | (32,830 | ) | (3,328 | ) | (51,492 | ) | ||||||
Restructuring charges | (1,369 | ) | (8,621 | ) | (1,114 | ) | (9,990 | ) | (3,252 | ) | |||||
Income from vessel operations | 71,463 | 84,232 | 1,921 | 155,695 | 20,426 | ||||||||||
Interest expense | (70,205 | ) | (73,671 | ) | (59,526 | ) | (143,876 | ) | (114,151 | ) | |||||
Interest income | 2,233 | 2,689 | 2,095 | 4,922 | 3,772 | ||||||||||
Realized and unrealized (losses) gains on | |||||||||||||||
non-designated derivative instruments (1) | (10,964 | ) | (5,423 | ) | 10,723 | (16,387 | ) | 20,149 | |||||||
Equity (loss) income (2) | (6,284 | ) | (61,653 | ) | 837 | (67,937 | ) | 27,954 | |||||||
Income tax expense | (3,404 | ) | (5,036 | ) | (8,746 | ) | (8,440 | ) | (12,863 | ) | |||||
Foreign exchange (loss) gain | (5,851 | ) | (2,630 | ) | 12,529 | (8,481 | ) | 12,551 | |||||||
Loss on deconsolidation of Teekay Offshore | — | — | — | — | (7,070 | ) | |||||||||
Other (loss) income – net (3) | (11,099 | ) | 28 | 520 | (11,071 | ) | (395 | ) | |||||||
Net loss | (34,111 | ) | (61,464 | ) | (39,647 | ) | (95,575 | ) | (49,627 | ) | |||||
Net (income) loss attributable to | |||||||||||||||
non-controlling interests | (5,374 | ) | (22,793 | ) | 11,323 | (28,167 | ) | 748 | |||||||
Net loss attributable to the shareholders of | |||||||||||||||
Teekay Corporation | (39,485 | ) | (84,257 | ) | (28,324 | ) | (123,742 | ) | (48,879 | ) | |||||
Loss per common share of Teekay Corporation | |||||||||||||||
- Basic and diluted | $ | (0.39 | ) | $ | (0.84 | ) | $ | (0.28 | ) | $ | (1.23 | ) | $ | (0.49 | ) |
Weighted-average number of common | |||||||||||||||
shares outstanding | |||||||||||||||
- Basic and diluted | 100,783,496 | 100,520,421 | 100,434,512 | 100,652,685 | 98,892,574 |
(1) | Realized and unrealized (losses) gains related to derivative instruments that are not designated in qualifying hedging relationships for accounting purposes are included as a separate line item in the consolidated statements of loss. The realized (losses) gains relate to the amounts the Company actually paid to settle such derivative instruments and the unrealized (losses) gains relate to the change in fair value of such derivative instruments, as detailed in the table below: |
Three Months Ended | Six Months Ended | ||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | |||||||
2019 | 2019 | 2018 | 2019 | 2018 | |||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||
Realized losses relating to | |||||||||||
Interest rate swap agreements | (1,785 | ) | (1,688 | ) | (4,031 | ) | (3,473 | ) | (8,840 | ) | |
Stock purchase warrants(i) | (25,559 | ) | — | — | (25,559 | ) | — | ||||
Forward freight agreements | (29 | ) | (13 | ) | (18 | ) | (42 | ) | (18 | ) | |
(27,373 | ) | (1,701 | ) | (4,049 | ) | (29,074 | ) | (8,858 | ) | ||
Unrealized (losses) gains relating to | |||||||||||
Interest rate swap agreements | (8,195 | ) | (6,021 | ) | 8,532 | (14,216 | ) | 24,451 | |||
Foreign currency forward contracts | (101 | ) | — | — | (101 | ) | — | ||||
Stock purchase warrants(i) | 24,584 | 2,316 | 6,206 | 26,900 | 4,522 | ||||||
Forward freight agreements | 121 | (17 | ) | 34 | 104 | 34 | |||||
16,409 | (3,722 | ) | 14,772 | 12,687 | 29,007 | ||||||
Total realized and unrealized (losses) gains on derivative instruments | (10,964 | ) | (5,423 | ) | 10,723 | (16,387 | ) | 20,149 |
(i) | Relates to the sale of the Company's remaining interest in Teekay Offshore in May 2019. Also refer to (2) below. |
Three Months Ended | Six Months Ended | ||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | |||||||
2019 | 2019 | 2018 | 2019 | 2018 | |||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||
Equity (loss) income | (6,284 | ) | (61,653 | ) | 837 | (67,937 | ) | 27,954 | |||
Proportionate share of unrealized losses (gains) on derivative instruments | 5,203 | 8,765 | (6,986 | ) | 13,968 | (26,463 | ) | ||||
Loss on sale/write-down of investment in Teekay Offshore(i) | 7,853 | 64,900 | — | 72,753 | — | ||||||
Other(ii) | 1,023 | — | 10,712 | 1,023 | 12,244 | ||||||
Equity income adjusted for items in Appendix A | 7,795 | 12,012 | 4,563 | 19,807 | 13,735 |
(i) | During the three and six months ended June 30, 2019, the Company recognized a loss of $7.9 million on sale of its investment in Teekay Offshore to Brookfield which occurred in May 2019. In connection with the sale, the Company also recognized a write-down of $64.9 million on its equity-accounted investment in Teekay Offshore in the first quarter of 2019. Also refer to (1) above in respect of gains and losses on stock purchase warrants. |
(ii) | Other for the three and six months ended June 30, 2018 includes the Company's proportionate share of write-downs and gain on sales of vessels in Teekay Offshore and a loss on sale of the Company's investment in KT Maritime Services Australia (Pty) Ltd. Other for the six months ended June 30, 2018 also includes the Company's proportionate share of the gain (loss) on sale of vessels in Teekay LNG's Exmar LPG joint venture, partially offset by transaction fees relating to the historical amendment of certain interest rate swaps in Teekay Offshore, depreciation expense as a result of the change in the useful life and residual value estimates of certain of Teekay Offshore's shuttle tankers, a decrease in the deferred income tax asset for Teekay Offshore's Norwegian tax structure and the write-down of loans receivable from Gemini Tankers LLC. |
As at June 30, | As at March 31, | As at December 31, | |||||
2019 | 2019 | 2018 | |||||
(unaudited) | (unaudited) | (unaudited) | |||||
ASSETS | |||||||
Cash and cash equivalents - Teekay Parent | 74,890 | 213,090 | 220,238 | ||||
Cash and cash equivalents - Teekay LNG | 124,880 | 122,589 | 149,014 | ||||
Cash and cash equivalents - Teekay Tankers | 35,429 | 75,045 | 54,917 | ||||
Current portion of loans and advances to | |||||||
equity-accounted investments (1) | 93,924 | 153,409 | 169,197 | ||||
Vessel held for sale | 12,300 | — | — | ||||
Accounts receivable and other current assets (1) | 330,811 | 259,888 | 251,527 | ||||
Restricted cash - Teekay Parent | 2,023 | 2,040 | 2,030 | ||||
Restricted cash - Teekay LNG | 80,308 | 78,015 | 73,850 | ||||
Restricted cash - Teekay Tankers | 5,353 | 5,524 | 5,590 | ||||
Vessels and equipment - Teekay Parent | 284,840 | 292,653 | 304,049 | ||||
Vessels and equipment - Teekay LNG | 3,320,937 | 3,403,379 | 3,242,581 | ||||
Vessels and equipment - Teekay Tankers | 1,856,766 | 1,864,425 | 1,883,561 | ||||
Operating lease right-of-use assets (2) | 185,716 | 173,945 | — | ||||
Advances on newbuilding contracts | — | — | 86,942 | ||||
Net investment in direct financing leases | 564,685 | 571,796 | 575,163 | ||||
Investments in and loans to equity-accounted | 1,011,530 | 1,106,572 | 1,193,741 | ||||
investments | |||||||
Other non-current assets | 141,626 | 159,115 | 179,270 | ||||
Total Assets | 8,126,018 | 8,481,485 | 8,391,670 | ||||
LIABILITIES AND EQUITY | |||||||
Accounts payable and accrued liabilities and | |||||||
other (1) | 356,022 | 268,897 | 254,380 | ||||
Advances from equity-accounted investments (1) | 27,607 | 64,406 | 75,292 | ||||
Current portion of long-term debt - Teekay Parent | 36,663 | 255,458 | — | ||||
Current portion of long-term debt - Teekay LNG | 468,038 | 201,362 | 217,120 | ||||
Current portion of long-term debt - Teekay Tankers | 125,661 | 146,843 | 127,132 | ||||
Long-term debt - Teekay Parent | 345,768 | 349,637 | 614,341 | ||||
Long-term debt - Teekay LNG | 2,799,426 | 3,121,709 | 3,051,212 | ||||
Long-term debt - Teekay Tankers | 894,501 | 939,222 | 983,563 | ||||
Derivative liabilities | 84,653 | 75,244 | 68,557 | ||||
Operating lease liabilities (2) | 173,476 | 161,479 | — | ||||
Other long-term liabilities | 141,578 | 141,138 | 133,045 | ||||
Equity: | |||||||
Non-controlling interests | 2,005,399 | 2,040,496 | 2,058,037 | ||||
Shareholders of Teekay | 667,226 | 715,594 | 808,991 | ||||
Total Liabilities and Equity | 8,126,018 | 8,481,485 | 8,391,670 | ||||
Net debt - Teekay Parent (3) | 305,518 | 389,965 | 392,073 | ||||
Net debt - Teekay LNG (3) | 3,062,276 | 3,122,467 | 3,045,468 | ||||
Net debt - Teekay Tankers (3) | 979,380 | 1,005,496 | 1,050,188 |
(1) | Subsequent to the sale of the Company's remaining interest in Teekay Offshore in May 2019, amounts receivable and payable to Teekay Offshore are presented in accounts receivable and accounts payable, respectively. These were previously presented in current portion of loans and advances to equity-accounted investments, and advances from equity-accounted investments, respectively. |
(3) | Net debt is a non-GAAP financial measure and represents current and long-term debt less cash and cash equivalents and, if applicable, restricted cash. |
Six Months Ended | ||||
June 30, | ||||
2019 | 2018 | |||
(unaudited) | (unaudited) | |||
Cash, cash equivalents and restricted cash provided by (used for) | ||||
OPERATING ACTIVITIES | ||||
Net loss | (95,575 | ) | (49,627 | ) |
Non-cash and non-operating items: | ||||
Depreciation and amortization | 145,956 | 135,271 | ||
Unrealized loss (gain) on derivative instruments and loss on sale of warrants | 14,933 | (35,515 | ) | |
Write-down and loss on sales of vessels | 3,328 | 51,492 | ||
Equity loss (income), net of dividends received | 85,211 | (15,207 | ) | |
Foreign currency exchange loss and other | 34,744 | 22,132 | ||
Direct financing lease payments received | 6,050 | — | ||
Change in operating assets and liabilities | 18,427 | 14,325 | ||
Expenditures for dry docking | (34,150 | ) | (12,437 | ) |
Net operating cash flow | 178,924 | 110,434 | ||
FINANCING ACTIVITIES | ||||
Proceeds from issuance of long-term debt, net of issuance costs | 376,658 | 409,793 | ||
Prepayments of long-term debt | (759,401 | ) | (295,914 | ) |
Scheduled repayments of long-term debt | (117,110 | ) | (171,433 | ) |
Proceeds from short-term debt | 65,000 | — | ||
Prepayment of short-term debt | (50,000 | ) | — | |
Proceeds from financing related to sales-leaseback of vessels | 222,400 | 243,812 | ||
Repayments of obligations related to finance leases | (45,928 | ) | (28,819 | ) |
Net proceeds from equity issuances of Teekay Corporation | — | 103,657 | ||
Repurchase of Teekay LNG common units | (12,056 | ) | — | |
Distributions paid from subsidiaries to non-controlling interests | (30,465 | ) | (33,872 | ) |
Cash dividends paid | (5,523 | ) | (11,036 | ) |
Other financing activities | (580 | ) | (566 | ) |
Net financing cash flow | (357,005 | ) | 215,622 | |
INVESTING ACTIVITIES | ||||
Expenditures for vessels and equipment | (89,120 | ) | (315,348 | ) |
Proceeds from sale of equity-accounted investments and related assets | 100,000 | 54,438 | ||
Investment in equity-accounted investments | (15,555 | ) | (27,629 | ) |
Loans to joint ventures and joint venture partners | — | (24,971 | ) | |
Cash of transferred subsidiaries on sale, net of proceeds received | — | (25,254 | ) | |
Other investing activities | — | 5,560 | ||
Net investing cash flow | (4,675 | ) | (333,204 | ) |
Decrease in cash, cash equivalents and restricted cash | (182,756 | ) | (7,148 | ) |
Cash, cash equivalents and restricted cash, beginning of the period | 505,639 | 552,174 | ||
Cash, cash equivalents and restricted cash, end of the period | 322,883 | 545,026 |
Three Months Ended | |||||||||||||
June 30, | March 31, | June 30, | |||||||||||
2019 | 2019 | 2018 | |||||||||||
(unaudited) | (unaudited) | (unaudited) | |||||||||||
$ Per | $ Per | $ Per | |||||||||||
$ | Share(1) | $ | Share(1) | $ | Share(1) | ||||||||
Net loss – GAAP basis | (34,111 | ) | (61,464 | ) | (39,647 | ) | |||||||
Adjust for: Net (income) loss attributable to | |||||||||||||
non-controlling interests | (5,374 | ) | (22,793 | ) | 11,323 | ||||||||
Net loss attributable to | |||||||||||||
shareholders of Teekay | (39,485 | ) | (0.39 | ) | (84,257 | ) | (0.84 | ) | (28,324 | ) | (0.28 | ) | |
(Subtract) add specific items affecting net loss | |||||||||||||
Unrealized (gains) losses from derivative | |||||||||||||
instruments(2) | (11,206 | ) | (0.11 | ) | 12,488 | 0.12 | (21,758 | ) | (0.22 | ) | |||
Foreign exchange losses (gains)(3) | 4,764 | 0.05 | 1,196 | 0.01 | (14,045 | ) | (0.14 | ) | |||||
Write-down and loss on sale of vessels | |||||||||||||
and other assets | 7,853 | 0.08 | 68,228 | 0.68 | 43,157 | 0.43 | |||||||
Restructuring charges, net of recoveries | 1,369 | 0.01 | 2,158 | 0.02 | (607 | ) | (0.01 | ) | |||||
Other(4) | 37,329 | 0.37 | 1,998 | 0.02 | 5,490 | 0.06 | |||||||
Non-controlling interests’ share of items above(5) | (13,992 | ) | (0.14 | ) | (14,766 | ) | (0.15 | ) | (5,468 | ) | (0.05 | ) | |
Total adjustments | 26,117 | 0.26 | 71,302 | 0.71 | 6,769 | 0.07 | |||||||
Adjusted net loss attributable to | |||||||||||||
shareholders of Teekay | (13,368 | ) | (0.13 | ) | (12,955 | ) | (0.13 | ) | (21,555 | ) | (0.21 | ) |
(1) | Basic per share amounts. |
(2) | Reflects unrealized (gains) losses relating to the change in the mark-to-market value of derivative instruments that are not designated in qualifying hedging relationships for accounting purposes, including those (gains) losses included in the Company's proportionate share of equity income (loss) from joint ventures, and for 2018 periods hedge ineffectiveness from derivative instruments designated as hedges for accounting purposes. |
(3) | Foreign currency exchange losses (gains) primarily relate to the Company’s debt denominated in Euros and Norwegian Kroner (NOK) and unrealized losses on cross currency swaps used to economically hedge the principal and interest on NOK bonds. Nearly all of the Company’s foreign currency exchange gains and losses are unrealized. |
(4) | Other for the three months ended June 30, 2019 includes the realized loss on sale of stock purchase warrants in Teekay Offshore and a loss on the repurchase of 2020 Notes. Other for the three months ended March 31, 2019 includes the loan extinguishment costs related to Teekay LNG's refinancing of one of its debt facilities. Other for the three months ended June 30, 2018 includes a decrease in the Company's freight taxes relating to prior periods and a decrease in the Company's deferred tax assets. |
(5) | Items affecting net loss include items from the Company’s consolidated non-wholly-owned subsidiaries. The specific items affecting net loss are analyzed to determine whether any of the amounts originated from a consolidated non-wholly-owned subsidiary. Each amount that originates from a consolidated non-wholly-owned subsidiary is multiplied by the non-controlling interests’ percentage share in this subsidiary to determine the non-controlling interests’ share of the amount. The amount identified as “Non-controlling interests’ share of items above” in the table above is the cumulative amount of the non-controlling interests’ proportionate share of items listed in the table. |
Teekay | Teekay | Teekay | Consolidation | Total | |||||||
LNG | Tankers | Parent | Adjustments(1) | ||||||||
Revenues | 153,060 | 202,277 | 105,817 | (3,487 | ) | 457,667 | |||||
Voyage expenses | (6,023 | ) | (92,668 | ) | (9 | ) | 20 | (98,680 | ) | ||
Vessel operating expenses | (27,457 | ) | (53,600 | ) | (82,564 | ) | 1,000 | (162,621 | ) | ||
Time-charter hire expense | (3,080 | ) | (10,792 | ) | (17,432 | ) | 2,487 | (28,817 | ) | ||
Depreciation and amortization | (35,338 | ) | (30,658 | ) | (7,853 | ) | — | (73,849 | ) | ||
General and administrative expenses | (5,667 | ) | (9,508 | ) | (6,073 | ) | 380 | (20,868 | ) | ||
Restructuring charges | (818 | ) | — | (151 | ) | (400 | ) | (1,369 | ) | ||
Income (loss) from vessel operations | 74,677 | 5,051 | (8,265 | ) | — | 71,463 | |||||
Interest expense | (41,018 | ) | (16,607 | ) | (12,644 | ) | 64 | (70,205 | ) | ||
Interest income | 960 | 221 | 1,116 | (64 | ) | 2,233 | |||||
Realized and unrealized loss on | |||||||||||
non-designated derivative instruments | (7,826 | ) | (1,778 | ) | (1,360 | ) | — | (10,964 | ) | ||
Equity income (loss) | 1,738 | (169 | ) | (7,853 | ) | — | (6,284 | ) | |||
Equity in earnings of subsidiaries(2) | — | — | (629 | ) | 629 | — | |||||
Income tax (expense) recovery | (2,472 | ) | (1,639 | ) | 707 | — | (3,404 | ) | |||
Foreign exchange (loss) gain | (7,243 | ) | 595 | 797 | — | (5,851 | ) | ||||
Other income (loss) – net | 236 | 19 | (11,354 | ) | — | (11,099 | ) | ||||
Net income (loss) | 19,052 | (14,307 | ) | (39,485 | ) | 629 | (34,111 | ) | |||
Net income attributable to | |||||||||||
non-controlling interests(3) | (2,617 | ) | — | — | (2,757 | ) | (5,374 | ) | |||
Net income (loss) attributable to shareholders/ | |||||||||||
unitholders of publicly-listed entities | 16,435 | (14,307 | ) | (39,485 | ) | (2,128 | ) | (39,485 | ) |
(1) | Consolidation Adjustments column includes adjustments which eliminate transactions between Teekay LNG, Teekay Tankers and Teekay Parent. |
(2) | Teekay Corporation’s proportionate share of the net earnings of its publicly-traded subsidiaries. |
(3) | Net income attributable to non-controlling interests in the Teekay LNG column represents the joint venture partners’ share of the net income of its respective consolidated joint ventures. Net income attributable to non-controlling interest in the Consolidation Adjustments column represents the public’s share of the net income of Teekay’s publicly-traded consolidated subsidiaries. |
Teekay | ||||||||
Parent | ||||||||
FPSOs | Other(1) | GPCO | Total | |||||
Revenues | 57,828 | 47,989 | — | 105,817 | ||||
Voyage expenses | (9 | ) | — | — | (9 | ) | ||
Vessel operating expenses | (41,229 | ) | (41,335 | ) | — | (82,564 | ) | |
Time-charter hire expense | (11,512 | ) | (5,920 | ) | — | (17,432 | ) | |
Depreciation and amortization | (7,811 | ) | (42 | ) | — | (7,853 | ) | |
General and administrative expenses | (3,254 | ) | — | (2,819 | ) | (6,073 | ) | |
Restructuring charges | — | (151 | ) | — | (151 | ) | ||
(Loss) income from vessel operations | (5,987 | ) | 541 | (2,819 | ) | (8,265 | ) | |
Depreciation and amortization | 7,811 | 42 | — | 7,853 | ||||
Amortization of in-process revenue | ||||||||
contracts and other | (1,923 | ) | 668 | — | (1,255 | ) | ||
Daughter entities distributions (2) | — | — | 5,094 | 5,094 | ||||
Teekay Parent adjusted EBITDA | (99 | ) | 1,251 | 2,275 | 3,427 |
(1) | Includes the results of two chartered-in FSO units owned by Teekay Offshore, and one chartered-in LNG unit owned by Teekay LNG, all of which are largely on a flow-through basis with Teekay Parent earning a small margin. |
(2) | In addition to the adjusted EBITDA generated by its directly owned and chartered-in assets, Teekay Parent also receives cash distributions from its consolidated publicly-traded subsidiary, Teekay LNG. For the three months ended June 30, 2019, Teekay Parent received cash distributions of $5.1 million from Teekay LNG, including those made with respect to its general partner interests in Teekay LNG. Distributions received for a given quarter consist of the amount of distributions relating to such quarter but received by Teekay Parent in the following quarter. Please refer to Appendix D of this release for further details. |
Three Months Ended | |||||||
June 30, | March 31, | June 30, | |||||
2019 | 2019 | 2018 | |||||
(unaudited) | (unaudited) | (unaudited) | |||||
TEEKAY PARENT GPCO | |||||||
Daughter Entities distributions to Teekay Parent(1) | |||||||
Limited Partner interests(2) | |||||||
Teekay LNG | 4,790 | 4,790 | 3,529 | ||||
Teekay Offshore | — | — | 566 | ||||
GP interests | |||||||
Teekay LNG | 304 | 305 | 228 | ||||
Teekay Offshore(3) | — | — | 16 | ||||
Other Dividends | |||||||
Teekay Tankers(2)(4) | — | — | — | ||||
Total Daughter Entity Distributions to Teekay Parent | 5,094 | 5,095 | 4,339 | ||||
Corporate general and administrative expenses | (2,819 | ) | (4,484 | ) | (4,016 | ) | |
Total Teekay Parent GPCO | 2,275 | 611 | 323 | ||||
TEEKAY PARENT OPCO | |||||||
Teekay Parent OPCO (5) | |||||||
FPSOs | (99 | ) | (3,112 | ) | 12,277 | ||
Other | 1,251 | 699 | 4,041 | ||||
Total Teekay Parent OPCO (6) | 1,152 | (2,413 | ) | 16,318 | |||
TEEKAY PARENT ADJUSTED EBITDA | 3,427 | (1,802 | ) | 16,641 | |||
Net interest expense(7) | (9,854 | ) | (11,961 | ) | (15,843 | ) | |
TOTAL TEEKAY PARENT FREE CASH FLOW | (6,427 | ) | (13,763 | ) | 798 | ||
Weighted-average number of common shares - Basic | 100,783,496 | 100,520,421 | 100,434,512 |
(1) | Daughter Entities dividends and distributions for a given quarter consist of the amount of dividends and distributions relating to such quarter but received by Teekay Parent in the following quarter. |
(2) | Common share/unit dividend/distribution cash flows to Teekay Parent are based on Teekay Parent’s ownership on the ex-dividend date for the respective publicly-traded subsidiary and equity-accounted investment in Teekay Offshore for the periods as follows: |
Three Months Ended | |||||||||
June 30, | March 31, | June 30, | |||||||
2019 | 2019 | 2018 | |||||||
(unaudited) | (unaudited) | (unaudited) | |||||||
Teekay LNG | |||||||||
Distribution per common unit | $ | 0.19 | $ | 0.19 | $ | 0.14 | |||
Common units owned by | |||||||||
Teekay Parent | 25,208,274 | 25,208,274 | 25,208,274 | ||||||
Total distribution | $ | 4,789,572 | $ | 4,789,572 | $ | 3,529,158 | |||
Teekay Offshore | |||||||||
Distribution per common unit | $ | — | $ | — | $ | 0.01 | |||
Common units owned by | |||||||||
Teekay Parent | — | 56,587,484 | 56,587,484 | ||||||
Total distribution | $ | — | $ | — | $ | 565,875 | |||
Teekay Tankers | |||||||||
Dividend per share | $ | — | $ | — | $ | — | |||
Shares owned by Teekay Parent | 77,298,441 | 77,298,441 | 77,298,441 | ||||||
Total dividend | $ | — | $ | — | $ | — |
(3) | For the first three quarters of 2018, Teekay Offshore paid a quarterly distribution of $0.01 per common unit. Commencing with the distribution for the fourth quarter of 2018, Teekay Offshore's Board reduced the quarterly distribution to zero. Teekay sold its remaining interests in Teekay Offshore to Brookfield in the second quarter of 2019. |
(4) | Includes Class A and Class B shareholdings. Teekay Tankers' past dividend policy was to pay out 30% to 50% of its quarterly adjusted net income (as defined), with a minimum quarterly dividend of $0.03 per share, subject to reserves the Teekay Tankers' Board of Directors may determine are necessary for the prudent operation of Teekay Tankers. Commencing with the dividend for the first quarter of 2018, Teekay Tankers' Board of Directors eliminated the minimum quarterly dividend; however, the variable portion of the dividend policy was maintained. |
(5) | Please refer to Appendices C and E for additional financial information on Teekay Parent’s adjusted EBITDA. |
(6) | Excludes corporate general and administrative expenses relating to Teekay Parent GPCO. |
(7) | Please see Appendix E to this release for a description of this measure and a reconciliation of this non-GAAP financial measure as used in this release to interest expense net of interest income, the most directly comparable GAAP financial measure. |
Three Months Ended | |||||||
June 30, | March 31, | June 30, | |||||
2019 | 2019 | 2018 | |||||
(unaudited) | (unaudited) | (unaudited) | |||||
Net loss | (34,111 | ) | (61,464 | ) | (39,647 | ) | |
Depreciation and amortization | 73,849 | 72,107 | 67,960 | ||||
Interest expense, net of interest income | 67,972 | 70,982 | 57,431 | ||||
Income tax expense | 3,404 | 5,036 | 8,746 | ||||
EBITDA | 111,114 | 86,661 | 94,490 | ||||
Specific income statement items affecting EBITDA: | |||||||
Asset impairments and loss on sale of vessels | — | 3,328 | 32,830 | ||||
Direct finance lease payments received in excess of revenue recognized | 4,037 | 3,218 | 2,897 | ||||
Amortization of in-process contracts and other | (1,255 | ) | (1,115 | ) | (2,727 | ) | |
Realized and unrealized loss (gain) on derivative instruments | 10,964 | 5,423 | (10,723 | ) | |||
Equity loss (income) | 6,284 | 61,653 | (837 | ) | |||
Foreign currency exchange loss (gain) | 5,851 | 2,630 | (12,529 | ) | |||
Other expense (income) - net | 11,099 | (28 | ) | (520 | ) | ||
Consolidated Adjusted EBITDA | 148,094 | 161,770 | 102,881 | ||||
Adjusted EBITDA from equity-accounted vessels (See Appendix E) | 48,515 | 75,190 | 61,316 | ||||
Total Adjusted EBITDA | 196,609 | 236,960 | 164,197 |
Three Months Ended | |||||||||||||
June 30, 2019 | March 31, 2019 | June 30, 2018 | |||||||||||
(unaudited) | (unaudited) | (unaudited) | |||||||||||
At | Company's | At | Company's | At | Company's | ||||||||
100% | Portion(1) | 100% | Portion(1) | 100% | Portion(1) | ||||||||
Revenues | 174,382 | 74,266 | 494,729 | 119,506 | 458,098 | 106,875 | |||||||
Vessel and other operating expenses | (69,135 | ) | (30,565 | ) | (219,099 | ) | (48,349 | ) | (228,523 | ) | (48,996 | ) | |
Depreciation and amortization | (29,459 | ) | (14,195 | ) | (112,611 | ) | (25,918 | ) | (128,353 | ) | (27,467 | ) | |
Asset impairments and loss on sale of | |||||||||||||
vessels | — | — | — | — | (62,913 | ) | (8,854 | ) | |||||
Income from vessel operations of equity-accounted vessels | 75,788 | 29,506 | 163,019 | 45,239 | 38,309 | 21,558 | |||||||
Net interest expense | (53,356 | ) | (21,467 | ) | (105,894 | ) | (28,856 | ) | (87,010 | ) | (23,611 | ) | |
Income tax expense | (670 | ) | (246 | ) | (5,176 | ) | (1,388 | ) | (46 | ) | (24 | ) | |
Other items including realized and | |||||||||||||
unrealized (loss) gain on derivative | |||||||||||||
instruments | (18,764 | ) | (6,224 | ) | (60,877 | ) | (11,748 | ) | 14,776 | 4,437 | |||
Write-down and loss on sale of equity- | |||||||||||||
accounted investments (2) | (7,853 | ) | (64,900 | ) | (1,523 | ) | |||||||
Net income (loss) / equity (loss) income of equity-accounted vessels | 2,998 | (6,284 | ) | (8,928 | ) | (61,653 | ) | (33,971 | ) | 837 | |||
Net income (loss) / equity (loss) income | |||||||||||||
of equity-accounted vessels | 2,998 | (6,284 | ) | (8,928 | ) | (61,653 | ) | (33,971 | ) | 837 | |||
Depreciation and amortization | 29,459 | 14,195 | 112,611 | 25,918 | 128,353 | 27,467 | |||||||
Net interest expense | 53,356 | 21,467 | 105,894 | 28,856 | 87,010 | 23,611 | |||||||
Income tax expense | 670 | 246 | 5,176 | 1,388 | 46 | 24 | |||||||
EBITDA | 86,483 | 29,624 | 214,753 | (5,491 | ) | 181,438 | 51,939 | ||||||
Specific income statement items affecting EBITDA: | |||||||||||||
Asset impairments and loss on sale of vessels | — | — | — | — | 62,913 | 8,854 | |||||||
Direct finance lease payments received in excess of revenue recognized | 16,131 | 5,759 | 14,689 | 5,133 | 13,879 | 4,707 | |||||||
Amortization of in-process contracts and other | (1,736 | ) | (945 | ) | (1,722 | ) | (936 | ) | (6,027 | ) | (1,322 | ) | |
Other items including realized and unrealized loss (gain) on derivative instruments | 18,764 | 6,224 | 60,877 | 11,749 | (14,776 | ) | (4,437 | ) | |||||
Realized (loss) gain on foreign currency forward contracts | — | — | (1,175 | ) | (165 | ) | 370 | 52 | |||||
Write-down and loss on sale of equity-accounted investments(2) | 7,853 | 64,900 | 1,523 | ||||||||||
Adjusted EBITDA from equity-accounted vessels(3)(4) | 119,642 | 48,515 | 287,422 | 75,190 | 237,797 | 61,316 |
(3) | Adjusted EBITDA from equity-accounted vessels represents the Company’s proportionate share of adjusted EBITDA from its equity-accounted vessels and other investments. |
(4) | The Company sold its investment in Teekay Offshore in May 2019 and consequently did not include any share of Teekay Offshore's adjusted EBITDA for the three months ended June 30, 2019. The three months ended March 31, 2019 and June 30, 2018 include the Company's proportionate share of the adjusted EBITDA from Teekay Offshore. |
Three Months Ended March 31, 2019 | |||||||||||
(unaudited) | |||||||||||
Teekay | |||||||||||
Parent | |||||||||||
FPSOs | Other | GPCO | Total | ||||||||
Teekay Parent loss from vessel operations | (12,557) | (185 | ) | (4,484 | ) | (17,226 | ) | ||||
Depreciation and amortization | 8,036 | 80 | — | 8,116 | |||||||
Asset impairments | 3,328 | — | — | 3,328 | |||||||
Amortization of in-process revenue contracts and other | (1,919) | 804 | — | (1,115 | ) | ||||||
Daughter entities distributions | — | — | 5,095 | 5,095 | |||||||
Adjusted EBITDA – Teekay Parent | (3,112) | 699 | 611 | (1,802 | ) |
Three Months Ended June 30, 2018 | ||||||||||||
(unaudited) | ||||||||||||
Teekay | ||||||||||||
Parent | ||||||||||||
FPSOs | Other | GPCO | Total | |||||||||
Teekay Parent income (loss) from vessel operations | 5,541 | 3,306 | (4,016 | ) | 4,831 | |||||||
Depreciation and amortization | 8,593 | — | — | 8,593 | ||||||||
Amortization of in-process revenue contracts and other | (1,857 | ) | 735 | — | (1,122 | ) | ||||||
Daughter entities distributions | — | — | 4,339 | 4,339 | ||||||||
Adjusted EBITDA – Teekay Parent | 12,277 | 4,041 | 323 | 16,641 |
Three Months Ended | ||||||||
June 30, | March 31, | June 30, | ||||||
2019 | 2019 | 2018 | ||||||
(unaudited) | (unaudited) | (unaudited) | ||||||
Interest expense | (70,205 | ) | (73,671 | ) | (59,526 | ) | ||
Interest income | 2,233 | 2,689 | 2,095 | |||||
Interest expense net of interest income consolidated | (67,972 | ) | (70,982 | ) | (57,431 | ) | ||
Less: Non-Teekay Parent interest expense net of | ||||||||
interest income | (56,444 | ) | (57,716 | ) | (41,040 | ) | ||
Interest expense net of interest income - Teekay Parent | (11,528 | ) | (13,266 | ) | (16,391 | ) | ||
Teekay Parent non-cash accretion and loan cost amortization | 1,896 | 1,562 | 942 | |||||
Teekay Parent realized losses on interest rate swaps | (222 | ) | (257 | ) | (394 | ) | ||
Net interest expense - Teekay Parent | (9,854 | ) | (11,961 | ) | (15,843 | ) |
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