News & Events
Hornbeck Offshore Announces Fourth Quarter 2018 Results
02 / 13 / 19
COVINGTON, La., Feb. 13, 2019 /PRNewswire/ -- Hornbeck Offshore Services, Inc. (NYSE:HOS) announced today results for the fourth quarter ended December 31, 2018. Following is an executive summary for this period and the Company's future outlook:
- 4Q2018 revenues were $53.9 million, a decrease of $4.6 million, or 8% from 3Q2018 revenues of $58.5 million
- 4Q2018 diluted EPS was $(0.64), an improvement of $0.19 from 3Q2018 diluted EPS of $(0.83)
- 4Q2018 net loss was $(24.2) million, an improvement of $7.0 million from 3Q2018 net loss of $(31.2) million
- 4Q2018 EBITDA was $12.0 million, an increase of $6.8 million, or 131%, from 3Q2018 EBITDA of $5.2 million
- 4Q2018 G&A expense includes a decrease of $7.1 million in stock-based compensation related to a "mark-to-market" adjustment
- Excluding this item, adjusted 4Q2018 diluted EPS and net loss were $(0.79) and $(29.6) million, respectively
- Excluding this item, adjusted 4Q2018 EBITDA of $4.9 million was $2.5 million, or 34%, lower than comparably calculated 3Q2018 EBITDA
- 4Q2018 average new gen OSV dayrates were $19,272, a sequential decrease of $174, or 1%
- 4Q2018 effective new gen OSV dayrates were $5,936, a sequential increase of $861, or 17%
- 4Q2018 utilization of the Company's new gen OSV fleet was 30.8%, up from 26.1% sequentially
- 4Q2018 effective utilization of the Company's active new gen OSVs was 71.7%, up from 65.4% sequentially
- The Company currently has 36 OSVs and two MPSVs stacked and expects to have 36 OSVs and two MPSVs stacked at the end of 1Q2019
- Quarter-end cash was $225 million, up from $108 million sequentially, with $61 million of newbuild growth capex remaining to be funded
- On December 31, 2018, the Company drew the remaining balance of $136.7 million available under its first-lien term loan agreement
- In February 2019, the Company exchanged $131.6 million of its 2020 Notes for $111.9 million of second-lien term loans due 2025
The Company recorded a net loss for the fourth quarter of 2018 of $(24.2) million, or $(0.64) per diluted share, compared to net income of $93.8 million, or $2.48 per diluted share, for the fourth quarter of 2017; and a net loss of $(31.2) million, or $(0.83) per diluted share, for the third quarter of 2018. Included in the Company's fourth quarter 2018 results is a $7.1 million decrease in G&A expense due to a "mark-to-market" adjustment required by GAAP on cash-settled awards to reflect the decrease in the Company's stock price during the three months ended December 31, 2018. Excluding the net impact of this reconciling item, net loss and diluted EPS for the fourth quarter of 2018 would have been $(29.6) million and $(0.79) per diluted share, respectively. 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. Included in the Company's third quarter 2018 results is a $2.2 million increase in G&A expense due to a "mark-to-market" adjustment on cash-settled awards to reflect the increase in the Company's stock price during the three months ended September 30, 2018. Excluding the net impact of this item, net loss and diluted EPS for the third quarter of 2018 would have been $(29.4) million, and $(0.78) per share, respectively. Diluted common shares for the fourth quarter of 2018 were 37.6 million compared to 37.9 million and 37.6 million for the fourth quarter of 2017 and the third quarter of 2018, respectively. GAAP requires the use of basic shares outstanding for diluted EPS when reporting a net loss. EBITDA for the fourth quarter of 2018 was $12.0 million compared to $13.9 million for the fourth quarter of 2017 and $5.2 million for the third quarter of 2018. Excluding the "mark-to-market" adjustments to G&A expense discussed above, fourth quarter 2018 and third quarter 2018 EBITDA would have been $4.9 million and $7.4 million, respectively. See link below for full article.
Source: PR Newswire