Tidewater(TDW) - 2019 Q1 - Quarterly Report

Financial Performance - Revenues for the quarter ended March 31, 2019, were $122.1 million, an increase from $91.5 million in the same quarter of 2018, primarily due to the business combination with GulfMark, contributing an incremental $25.5 million[95]. - Vessel revenues increased by 37% to $119.7 million in Q1 2019 from $87.5 million in Q1 2018, driven by the addition of vessels from the GulfMark business combination[102]. - The company reported a total operating loss of $9.6 million in Q1 2019, compared to a loss of $12.2 million in Q1 2018[105]. - General and administrative expenses for the quarter ended March 31, 2019, were $27.1 million, up from $23.6 million in the prior year, including $3.8 million in GulfMark costs and $3.7 million in severance related to integration efforts[98]. - Net cash used in operating activities for Q1 2019 was $3.2 million, an improvement from $6.0 million in Q1 2018[126]. Costs and Expenses - Vessel operating costs for the quarter ended March 31, 2019, were $82.2 million, up from $61.4 million in the prior year, with an incremental increase of $18.2 million attributed to the GulfMark business combination[96]. - Depreciation expense for the quarter ended March 31, 2019, was $22.9 million, compared to $12.0 million in the same quarter of 2018, reflecting an increase of $8.1 million due to the GulfMark merger[97]. - Total vessel operating costs were $82.2 million in Q1 2019, representing 69% of total vessel revenues, compared to 70% in Q1 2018[105]. - General and administrative expenses decreased to $12.3 million in Q1 2019, down from $16.9 million in Q1 2018, reflecting a new policy to discontinue the allocation of certain corporate expenses[104]. - Total segment depreciation expense increased to $22.6 million in Q1 2019, up from $11.9 million in Q1 2018, reflecting the addition of GulfMark vessels[104]. Asset Management - The company recognized net gains of $1.3 million from the sale of 16 vessels and other assets during the quarter ended March 31, 2019, compared to $1.9 million from the sale of 20 vessels in the same quarter of 2018[99]. - The company disposed of 16 vessels in Q1 2019, compared to 20 vessels in Q1 2018[121]. - Asset impairments were not incurred in Q1 2019, compared to $6.2 million for 13 vessels in Q1 2018[115]. Fleet and Utilization - The company operates a fleet of 241 vessels with an average age of 10.4 years, including 71 stacked vessels, as of March 31, 2019[83]. - The total number of vessels owned in active service increased to 170 as of March 31, 2019, from 165 at the end of 2018[120]. - Vessel utilization in the Americas fleet increased to 48.4% in Q1 2019 from 42.7% in Q1 2018, while average day rates decreased to $11,436 from $14,558[118]. - The Middle East/Asia Pacific fleet saw vessel utilization rise to 61.5% from 44.9%, with average day rates declining to $7,205 from $8,051[118]. - Europe/Mediterranean Sea fleet utilization improved to 60.1% from 57.1%, and average day rates increased to $10,964 from $8,928[118]. - The worldwide fleet's average vessel day rates were $9,806 in Q1 2019, down from $10,093 in Q1 2018, while utilization rose to 53.6% from 44.4%[118]. Market Conditions - The company’s operational results are significantly influenced by global oil and natural gas prices, which have shown volatility, impacting exploration and production expenditures[93]. - The ongoing decline in oil prices since 2014 has materially affected the company's operational results, revenues, and cash flows, with potential adverse effects on liquidity if prices remain low[93]. Segment Performance - Operating loss for the Americas segment was $1.0 million in Q1 2019, a decrease from an operating profit of $4.9 million in Q1 2018, primarily due to increased vessel operating costs[107]. - Middle East/Asia Pacific segment revenues rose by 11% to $20.5 million in Q1 2019, with utilization increasing from 44.9% to 61.5%[108]. - Europe/Mediterranean Sea segment revenues surged by 197% to $28.6 million in Q1 2019, with utilization increasing from 57.1% to 60.1%[110]. - West Africa segment revenues increased by 6% to $35.4 million in Q1 2019, with utilization rising from 42.2% to 49.4%[112]. Cash Flow - As of March 31, 2019, the company had $398.0 million in cash and cash equivalents, including $7.0 million of restricted cash[122]. - Net cash provided by investing activities was $6.5 million in Q1 2019, primarily from the disposal of vessels[129]. - Net cash used in financing activities decreased to $3.1 million in Q1 2019 from $9.8 million in Q1 2018[132].