News & Events
Hornbeck Offshore Announces Second Quarter 2017 Results
08 / 02 / 17
COVINGTON, La., Aug. 2, 2017 /PRNewswire/ -- Hornbeck Offshore Services, Inc. (NYSE: HOS) announced today results for the second quarter ended June 30, 2017. Following is an executive summary for this period and the Company's future outlook:
- 2Q2017 diluted EPS was $(0.53), an increase of $0.23, or 30%, from 1Q2017 diluted EPS of $(0.76)
- 2Q2017 net loss was $(19.5) million, an increase of $8.4 million from 1Q2017 net loss of $(27.9) million
- 2Q2017 EBITDA was $12.2 million, an increase of $10.6 million from 1Q2017 EBITDA of $1.6 million
- 2Q2017 note repurchases resulted in a net gain on early extinguishment of debt of $15.5 million, or $0.29 per diluted share
- Excluding such gain on early extinguishment of debt, adjusted 2Q2017 diluted EPS and net loss were $(0.82)and $(30.0) million, respectively
- Excluding such $15.5 million gain, 2Q2017 EBITDA of $12.2 million would have been $(3.3) million from operations
- 2Q2017 average new gen OSV dayrates were $17,202, a sequential decrease of $2,019, or 11%, excluding the 1Q2017 redelivery fee
- 2Q2017 effective new gen OSV dayrates were $3,836, in line with the sequential quarter, excluding the 1Q2017 redelivery fee
- 2Q2017 utilization of the Company's new gen OSV fleet was 22%, up from 20% sequentially
- 2Q2017 effective utilization of the Company's active new gen OSVs was 67%, down from 68% sequentially
- The Company currently has 41 OSVs stacked and expects to have 45 OSVs stacked by end of 3Q2017
- On June 15, 2017, the Company closed on a new $300 million first-lien term loan credit facility, $96 million of which is currently outstanding
- 2Q2017 debt-for-debt exchanges under the new credit facility resulted in a deferred gain of $31.8 million, offset by $11.1 million of OID
- Quarter-end cash was $125 million, down from $209 million sequentially, with $68 million of newbuild growth capex remaining to be funded
- 2Q2017 total liquidity (cash and credit availability) of $329 million represents an increase of $44 million, or 16%, from 1Q2017
The Company recorded a net loss for the second quarter of 2017 of $(19.5) million, or $(0.53) per diluted share, compared to $(20.6) million, or $(0.57) per diluted share, for the year-ago quarter; and $(27.9) million, or $(0.76) per diluted share, for the first quarter of 2017. Included in the Company's second quarter 2017 results is a $15.5 million ($10.5 million after-tax or $0.29 per diluted share) net gain on early extinguishment of debt resulting from the repurchase of a portion of the Company's 1.500% Convertible Senior Notes due 2019, or Convertible Notes, and 5.875% Senior Notes due 2020, or 5.875% Senior Notes, offset in part by the write-off of certain related deal costs, unamortized financing costs and original issue discount. Excluding the impact of such net gain on early extinguishment of debt, net loss and diluted EPS for the second quarter of 2017 would have been $(30.0) million and $(0.82) per share, respectively. Included in the Company's first quarter 2017 results was a $9.4 million redelivery fee related to the completion of a long-term contract for one of the Company's OSVs. Also included in the Company's first quarter 2017 results was a $3.8 million increase in G&A expense resulting from additional bad debt reserves due to an unfavorable ruling in recent bankruptcy proceedings related to a receivable from a former customer. Excluding the net impact of these two items, net loss and diluted EPS for the first quarter of 2017 would have been $(31.7) million, and $(0.87) per share, respectively. After adjusting for these reconciling items included in the second quarter of 2017 and the sequential quarter, the second quarter net loss and diluted EPS would have been $1.7 million and $0.05 per share higher than the sequential quarter, respectively. Diluted common shares for the second quarter of 2017 were 36.8 million compared to 36.2 million and 36.6 million for the second quarter of 2016 and the first quarter of 2017, respectively. GAAP requires the use of basic shares outstanding for diluted EPS when reporting a net loss. EBITDA for the second quarter of 2017 was $12.2 millioncompared to $6.9 million for the second quarter of 2016 and $1.6 million for the first quarter of 2017. Excluding such gain on early extinguishment of debt in the second quarter of 2017, EBITDA would have been $(3.3) million. Excluding such redelivery fee and such additional bad debt reserves in the first quarter of 2017, EBITDA would have been $(3.9) million. See link below for full article.
Source: PR Newswire