Tidewater(TDW)2024-11-07 21:51Revenue and Financial Performance - Revenue for Q3 2024 was $340.4 million, a $1.1 million increase from the prior quarter[1] - Total revenues for Q3 2024 increased to $340.36 million, up from $299.26 million in Q3 2023, representing a 13.7% growth[17] - Vessel revenues for the nine months ended September 30, 2024, reached $994.17 million, up 42.3% from $698.48 million in the same period last year[17] - Total vessel revenues for the three months ended September 30, 2024, were $338.485 million, a 14% increase from $296.975 million in the same period in 2023[24] - Total revenues for Q3 2024 were $340.356 million, a slight increase from $339.230 million in Q2 2024[27] - Vessel revenues for Q3 2024 were $338.485 million, up from $337.003 million in Q2 2024[27] - Worldwide fleet total revenue for Q3 2024 was $338.485 million, showing a slight increase from $337.003 million in Q2 2024 and a significant rise from $296.975 million in Q3 2023[31] - Worldwide vessel revenues increased to $338.5 million in September 2024, up from $337.0 million in June 2024 and $318.7 million in March 2024[47] Net Income and Profitability - Net income for Q3 2024 was $46.4 million, compared to $26.2 million in Q3 2023[1] - Net income attributable to Tidewater Inc. for Q3 2024 rose to $46.37 million, compared to $26.20 million in Q3 2023, a 77.0% increase[17] - Net income attributable to Tidewater Inc. for Q3 2024 was $46.371 million, compared to $50.354 million in Q2 2024[27] - Net income for Q3 2024 was $45.99 million, a decrease from $49.92 million in Q2 2024[29] - Net income for September 2024 was $46.0 million, slightly down from $49.9 million in June 2024 but up from $37.3 million in December 2023[49] Cash Flow and Liquidity - Cash flow from operations for the first nine months of 2024 was $182.5 million, the best performance in 8 years[3] - Cash and cash equivalents as of September 30, 2024, stood at $280.84 million, slightly up from $274.44 million at the end of 2023[18] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $182.55 million, a significant increase from $57.47 million in the same period last year[21] - Net cash provided by operating activities in Q3 2024 was $49.14 million, down from $78.65 million in Q2 2024[29] - Free cash flow for Q3 2024 was $66,990 thousand, compared to $87,569 thousand in Q2 2024 and $69,373 thousand in Q1 2024[56] - Cash interest expense for Q3 2024 was $23,535 thousand, up from $14,925 thousand in Q2 2024 and $15,621 thousand in Q1 2024[56] Share Repurchases and Capital Allocation - The company repurchased 189,738 shares for $15.0 million at an average price of $79.06 per share[1] - The company anticipates share repurchase capacity to increase by close to $100 million in Q1 2025[3] - The company repurchased and retired $14.172 million worth of common stock during the three months ended September 30, 2024[22] Guidance and Outlook - Updated 2024 revenue guidance to $1.33 to $1.35 billion and gross margin guidance of 48%[1] - The company expects quarterly free cash flow generation to increase in the next two quarters[3] - The outlook on the timing of growth in offshore vessel activity has become uncertain due to concerns around slower acceleration in oil demand[6] Operating Income and Expenses - Operating income for the nine months ended September 30, 2024, was $229.97 million, a 93.0% increase from $119.12 million in the same period last year[17] - Operating income for the three months ended September 30, 2024, was $69.946 million, a 26% increase from $55.674 million in the same period in 2023[25] - Operating income for Q3 2024 was $69.946 million, a decrease from $78.127 million in Q2 2024[27] - Total operating costs and expenses for Q3 2024 were $270.410 million, up from $261.103 million in Q2 2024[27] - Total vessel operating costs worldwide increased to $178.7 million in September 2024, up from $176.5 million in June 2024 and $158.6 million in December 2023[47] Regional Performance - West Africa region contributed the highest vessel revenues at $95.324 million (28% of total) for the three months ended September 30, 2024, up from $73.650 million (25%) in the same period in 2023[24] - Asia Pacific region's vessel revenues increased by 44% to $56.283 million for the three months ended September 30, 2024, compared to $38.994 million in the same period in 2023[24] - Americas fleet revenue decreased to $64.606 million in Q3 2024 from $73.142 million in Q2 2024, with PSV > 900 vessels contributing $27.192 million[31] - Asia Pacific fleet revenue increased to $56.283 million in Q3 2024 from $55.221 million in Q2 2024, driven by PSV > 900 vessels generating $19.535 million[31] - Middle East fleet revenue remained stable at $36.947 million in Q3 2024 compared to $36.536 million in Q2 2024, with PSV < 900 vessels contributing $19.909 million[31] - Europe/Mediterranean fleet revenue rose to $85.325 million in Q3 2024 from $83.266 million in Q2 2024, with PSV > 900 vessels generating $66.808 million[31] - West Africa fleet revenue increased to $95.324 million in Q3 2024 from $88.838 million in Q2 2024, with PSV < 900 vessels contributing $41.367 million[31] Fleet Utilization and Day Rates - Average day rate increased to $22,275 per day, up $1,145 from the prior quarter[1] - The average day rate in large PSV and anchor handler fleets showed sequential quarterly improvement[2] - Vessel operating margin for the three months ended September 30, 2024, was 47%, up from 45% in the same period in 2023[24] - Vessel operating margin for Q3 2024 was $159.831 million, slightly down from $160.490 million in Q2 2024[27] - Worldwide fleet total average vessel day rates increased to $22,275 in September 2024 from $17,865 in September 2023, a growth of 24.7%[40] - PSV > 900 worldwide average vessel day rates increased to $25,883 in September 2024 from $22,804 in September 2023, up by 13.5%[40] - AHTS > 16K worldwide average vessel day rates rose to $41,721 in September 2024 from $26,293 in September 2023, marking a 58.7% increase[40] - AHTS 8 - 16K worldwide average vessel day rates grew to $18,087 in September 2024 from $15,533 in September 2023, an increase of 16.4%[40] - AHTS 4 - 8K worldwide average vessel day rates increased to $11,990 in September 2024 from $9,368 in September 2023, up by 28.0%[40] Debt and Liabilities - Long-term debt decreased to $597.35 million as of September 30, 2024, from $631.36 million at the end of 2023[18] - Long-term debt decreased to $597.35 million in September 2024 from $607.99 million in June 2024[28] - Principal payments on long-term debt in Q3 2024 were $62.50 million, significantly higher than $14.01 million in Q2 2024[29] Stockholders' Equity and Assets - Total stockholders' equity increased to $1.12 billion in September 2024 from $1.08 billion in June 2024[28] - Accumulated deficit improved to ($541.19 million) in September 2024 from ($573.39 million) in June 2024[28] - Total assets decreased to $2.05 billion in September 2024 from $2.09 billion in June 2024[28] - Total equity increased to $1.11 billion in September 2024 from $1.08 billion in June 2024[28] Depreciation and Amortization - Depreciation and amortization expenses for the nine months ended September 30, 2024, totaled $178.15 million, compared to $121.16 million in the same period last year[17] - Depreciation expenses for Q3 2024 were $39.24 million, slightly lower than $39.38 million in Q2 2024[29] - Amortization of deferred drydocking and survey costs increased to $23.20 million in Q3 2024 from $20.07 million in Q2 2024[29] Foreign Exchange and Other Items - Foreign exchange gain for Q3 2024 was $5.522 million, compared to a loss of $2.376 million in Q2 2024[27] - Foreign exchange gains (losses) for Q3 2024 were $5,522, compared to $(2,376) in Q2 2024, $(4,085) in Q1 2024, $2,250 in Q4 2023, and $(2,149) in Q3 2023[50] Miscellaneous - Corporate expenses for the three months ended September 30, 2024, were $14.655 million, a 47% increase from $9.961 million in the same period in 2023[25] - General and administrative expenses for the three months ended September 30, 2024, included $3.7 million in stock-based compensation, up from $2.4 million in the same period in 2023[25] - Stock-based compensation expense in Q3 2024 was $3.57 million, slightly higher than $3.46 million in Q2 2024[29] - EBITDA for Q3 2024 includes non-cash stock-based compensation expense of $3,569, compared to $3,460 in Q2 2024, $2,766 in Q1 2024, $3,508 in Q4 2023, and $2,496 in Q3 2023[50]