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Hornbeck Offshore Announces Fourth Quarter 2017 Results

02 / 07 / 18

COVINGTON, La., Feb. 7, 2018 /PRNewswire/ -- Hornbeck Offshore Services, Inc. (NYSE:HOS) announced today results for the fourth quarter ended December 31, 2017.  Following is an executive summary for this period and the Company's future outlook:

  • 4Q2017 diluted EPS was $2.48, an improvement of $2.99 from 3Q2017 diluted EPS of $(0.51)
  • 4Q2017 net income was $93.8 million, an improvement of $112.8 million from 3Q2017 net loss of $(19.0) million
  • 4Q2017 income taxes include a benefit of $125.2 million related to the repricing of deferred tax liabilities due to the tax reform enacted in 2017
  • Offsetting this tax benefit was $14.2 million of tax expense due to valuation allowances for tax credits that may expire prior to being utilized
  • Excluding the reconciling items discussed below, adjusted 4Q2017 diluted EPS and net loss were $(0.44) and $(16.1) million, respectively
  • 4Q2017 EBITDA was $13.9 million, an increase of $3.3 million, or 31%, from 3Q2017 EBITDA of $10.6 million
  • 4Q2017 average new gen OSV dayrates were $18,964, a sequential increase of $481, or 3%
  • 4Q2017 effective new gen OSV dayrates were $4,570, a sequential decrease of $291, or 6%
  • 4Q2017 utilization of the Company's new gen OSV fleet was 24%, down from 26% sequentially
  • 4Q2017 effective utilization of the Company's active new gen OSVs was 81%, down from 86% sequentially
  • The Company currently has 44 OSVs stacked and expects to have a total of 45 OSVs stacked by the end of 1Q2018
  • The Company drew an additional $67 million of available capacity under its First-Lien Credit Facility at year-end 2017
  • Quarter-end cash was $187 million, up from $113 million sequentially, with $62 million of newbuild growth capex remaining to be funded
  • The Company now expects delivery of final two MPSVs in 2019 with $18 million and $44 million of growth capex in 2018 and 2019, respectively
  • 4Q2017 total liquidity (cash and credit availability) of $324 million represents an increase of $7 million, or 2%, from 3Q2017

The Company recorded net income for the fourth quarter of 2017 of $93.8 million, or $2.48 per diluted share, compared to a net loss of $(19.2) million, or $(0.53) per diluted share, for the year-ago quarter; and a net loss of $(19.0) million, or $(0.51) per diluted share, for the third quarter of 2017.  Included in the Company's fourth quarter 2017 results is a $125.2 million tax benefit related to U.S. tax reform legislation that was enacted in December 2017, partially offset by $14.2 million of tax expense due to valuation allowances related to tax credits that may expire prior to being utilized and a $1.7 million non-cash write-off of goodwill.  Excluding the net impact of these reconciling items, net loss and diluted EPS for the fourth quarter of 2017 would have been $(16.1) million and $(0.44) per diluted share, respectively.  Diluted common shares for the fourth quarter of 2017 were 37.9 million compared to 36.4 million and 37.0 million for the fourth quarter of 2016 and the third quarter of 2017, respectively.  GAAP requires the use of basic shares outstanding for diluted EPS when reporting a net loss.  EBITDA for the fourth quarter of 2017 was $13.9 million compared to $1.1 million for the fourth quarter of 2016 and $10.6 million for the third quarter of 2017. See link below for full article.

Source: PR Newswire

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