Cal Dive International, Inc.

CIK:0001364100|SEC Filings

Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Consolidated Statements of Operations (Unaudited) [Abstract]
Revenues	$ 114,583	$ 155,246	$ 355,376	$ 357,151
Cost of sales	116,802	144,800	381,245	355,592
Gross profit (loss)	(2,219)	10,446	(25,869)	1,559
General and administrative expenses	10,273	11,140	31,881	33,851
Other items	2,656	0	2,656	0
Provision for doubtful accounts	1,279	0	10,787	0
Asset impairments	34,826	20,041	36,773	20,166
(Gain) loss on sale of assets, net	708	(314)	(8,209)	(3,437)
Operating loss	(51,961)	(20,421)	(99,757)	(49,021)
Interest expense, net	9,571	5,677	23,156	14,939
Interest expense - adjustment to conversion feature of convertible debt	0	0	0	(6,362)
Loss on early extinguishment of debt	0	0	4,652	0
Other (income) expense, net	(212)	337	8	792
Loss before income taxes	(61,320)	(26,435)	(127,573)	(58,390)
Income tax benefit	(18,685)	(10,643)	(42,586)	(21,334)
Net loss	(42,635)	(15,792)	(84,987)	(37,056)
Income (loss) attributable to noncontrolling interest	(6)	1,008	(232)	(938)
Loss attributable to Cal Dive	$ (42,629)	$ (16,800)	$ (84,755)	$ (36,118)
Loss per share attributable to Cal Dive:
Basic and diluted (in dollars per share)	$ (0.45)	$ (0.18)	$ (0.89)	$ (0.39)
Weighted average shares outstanding:
Basic and diluted (in shares)	95,224	93,793	95,146	93,775

Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash Flows From Operating Activities:
Net loss	$ (84,987)	$ (37,056)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	41,803	41,521
Stock compensation expense	3,206	4,311
Deferred income tax expense (benefit)	(47,467)	(28,283)
(Gain) loss on sale of assets, net	(8,209)	(3,437)
Provision for doubtful accounts	10,787	0
Amortization of debt discount and deferred financing costs	5,173	5,825
Loss on early extinguishment of debt	4,652	0
Asset impairments	36,773	20,166
Other items	2,656	0
Mark-to-market adjustment of debt conversion feature	0	(6,362)
Changes in operating assets and liabilities:
Accounts receivable, net	(17,078)	(36,167)
Income tax receivable and payable, net	1,031	8,856
Other current assets	2,939	(18,815)
Deferred drydock costs	(3,222)	(9,838)
Accounts payable and accrued liabilities	(29,674)	17,591
Other noncurrent assets and liabilities, net	(2,947)	214
Net cash used in operating activities	(84,564)	(41,474)
Cash Flows From Investing Activities:
Additions to property and equipment	(12,757)	(14,512)
Proceeds from sales of property and equipment	27,765	7,804
Net cash provided by investing activities	15,008	(6,708)
Cash Flows From Financing Activities:
Repayments on secured term loan	(30,659)	(10,397)
Borrowings under unsecured term loan	0	20,000
Borrowings under second lien secured term loan	80,000	0
Draws on revolving credit facility	157,739	263,300
Repayments on revolving credit facility	(133,239)	(225,400)
Payment of deferred financing costs	(6,894)	(1,134)
Net cash provided by financing activities	66,947	46,369
Effect of exchange rate changes on cash and cash equivalents	(6)	(424)
Net decrease in cash and cash and cash equivalents	(2,615)	(2,237)
Cash and cash equivalents:
Cash and cash equivalents, beginning of period	12,190	8,343
Cash and cash equivalents, end of period	$ 9,575	$ 6,106

Consolidated Balance Sheets (Unaudited) (USD $)
In Thousands, unless otherwise specified

Sep. 30, 2014

Dec. 31, 2013

Current assets:

Cash and cash equivalents

$ 9,575

$ 12,190

Accounts receivable:

Trade, net of allowance for doubtful accounts of $9,508 and $0, respectively

67,379

55,409

Contracts in progress

119,485

125,121

Income tax receivable

104

Deferred income taxes

Other current assets

40,919

37,271

Total current assets

237,462

230,043

Property and equipment

624,108

690,749

Less - Accumulated depreciation

(313,048)

(302,169)

Net property and equipment

311,060

388,580

Other assets:

Deferred drydock costs, net

15,206

23,497

Other assets, net

7,265

8,562

Total assets

570,993

650,682

Current liabilities:

Accounts payable

88,968

114,663

Advanced billings on contracts

1,047

172

Accrued liabilities

24,459

29,284

Income tax payable

5,020

3,886

Current maturities of long-term debt

270,671

13,989

Deferred income taxes

1,769

Total current liabilities

391,934

161,994

Long-term debt

^[1]

179,464

^[1]

Deferred income taxes

11,316

58,784

Other long-term liabilities

8,191

8,423

Total liabilities

411,441

408,665

Equity:

Common stock, $0.01 par value, 240,000 shares authorized, 98,577 and 97,436 shares issued and outstanding, respectively

986

975

Capital in excess of par

440,565

437,455

Accumulated other comprehensive loss

(1,265)

(666)

Retained deficit

(275,432)

(190,677)

Equity attributable to Cal Dive

164,854

247,087

Noncontrolling interest

(5,302)

(5,070)

Total equity

159,552

242,017

Total liabilities and equity

$ 570,993

$ 650,682

[1]

At September 30, 2014 we were in default of certain financial covenants and payment obligations under our loan facilities. Subsequent to September 30, 2014, the lenders under our senior secured credit agreement waived our defaults through December 1, 2014. Although the lenders under our second lien facility have not similarly waived the defaults under such facility, as of the date hereof, they have not taken any action to accelerate the debt thereunder. An acceleration of our debt under either the first lien or second lien facility would cause a cross default under the indenture for our Convertible Notes. Because of these defaults and the cross default provisions contained in our loan facilities, all of our indebtedness has been reflected as current on our balance sheet. See below and note 12.