SEC Filings

10-K
HORNBECK OFFSHORE SERVICES INC /LA filed this Form 10-K on 02/28/2018
Entire Document
 

Cash Flows
Operating Activities. We rely primarily on cash flows from operations to provide working capital for current and future operations. Cash flows from operating activities were $(14.7) million in 2017, $53.5 million in 2016, and $217.1 million in 2015. Operating cash flows in 2017 were unfavorably affected by weak market conditions for our vessels operating worldwide. Operating cash flows in 2016 were unfavorably affected by weak market conditions for our vessels operating worldwide, which led to a decline in our weighted-average active operating fleet from 48 to 27 vessels. Operating cash flows in 2015 were favorably impacted by a reduction in outstanding accounts receivable balances combined with lower cash outflows for regulatory drydocking expenses compared to the prior year, partially offset by lower cash inflows from weak market conditions. Cash flows from operations for 2015 reflect full or partial-period contributions from 14 vessels that were placed in service under our fifth OSV newbuild program on various dates during 2014 and 2015.
Investing Activities. Net cash used in investing activities was $21.3 million in 2017, $97.0 million in 2016, and $141.3 million in 2015. Cash used in 2017 and 2016 consisted mainly of construction costs incurred for our fifth OSV newbuild program. Cash used in 2015 consisted of construction costs incurred for our fifth OSV newbuild program partially offset by $152.0 million in aggregate proceeds from the sale of four 250EDF class OSVs to the U.S. Navy. The proceeds from the asset sale have been reinvested in the construction of vessels under our fifth OSV newbuild program.
Financing Activities. Net cash provided by (used in) financing activities was $6.2 million in 2017, $(0.3) million in 2016, and $(0.2) million in 2015. Net cash provided by financing activities in 2017 resulted from net proceeds from our New Credit Facility partially offset by repurchases of our 2019 convertible senior notes and our 2020 senior notes. Net cash used in financing activities for 2016 resulted from net proceeds from common shares issued pursuant to our employee stock-based incentive plans, partially offset by deferred financing costs related to the amendments of our Old Credit Facility. Net cash used in financing activities for 2015 resulted from net proceeds from common shares issued pursuant to our employee stock-based incentive plans, partially offset by deferred financing costs related to the amendment and extension of our Old Credit Facility.
Commitments and Contractual Obligations
The following table and notes set forth our aggregate contractual obligations as of December 31, 2017 (in thousands). 
Contractual Obligations
 
Total
 
Less than
1 Year
 
1-3 Years
 
3-5 Years
 
Thereafter
Vessel construction commitments(1)
 
$
62,281

 
$
18,343

 
$
43,938

 
$

 
$

5.000% senior notes due 2021(2)
 
450,000

 

 

 
450,000

 

5.875% senior notes due 2020(3)
 
366,942

 

 
366,942

 

 

1.500% convertible senior notes due 2019(4)
 
99,647

 

 
99,647

 

 

First-lien credit facility (5)
 
177,560

 

 

 

 
177,560

Interest payments(6)
 
209,468

 
57,858

 
103,443

 
35,861

 
12,306

Operating leases(7)
 
34,090

 
2,959

 
4,898

 
5,050

 
21,183

Total
 
$
1,399,988

 
$
79,160

 
$
618,868

 
$
490,911

 
$
211,049


(1) 
Vessel construction commitments reflect contractual milestone payments for our fifth OSV newbuild program. The total project costs for the currently contracted 24-vessel program are expected to be $1,335,000, excluding capitalized construction period interest. From the inception of this program through December 31, 2017, we have incurred $1,272,700, or 95.3%, of total expected project costs.
(2) 
Our 2021 senior notes, with a fixed interest rate of 5.000% per year, mature on March 1, 2021 and currently include $3,142 of deferred financing costs.
(3) 
Our 2020 senior notes, with a fixed interest rate of 5.875% per year, mature on April 1, 2020 and currently include $2,061 of deferred financing costs.
(4) 
Our 2019 convertible senior notes, with a fixed interest rate of 1.500% per year, mature on September 1, 2019 and currently include $6,634 of non-cash original issue discount and $1,486 of deferred financing costs. Holders of the convertible senior notes may require that such notes be repurchased at their option pursuant to certain types of corporate transactions described in Note 6 of our consolidated financial statements included herein. The debt maturity reflected in the table above assumes that the holders of our convertible senior notes do not require that such notes be repurchased prior to their maturity in September 2019.
(5) 
Our first-lien credit facility matures on June 15, 2023 and currently includes $1,228 of non-cash original issue discount, $3,445 of deferred financing costs and $18,911 of deferred gain.
(6) 
Interest payments relate to our 2021 senior notes due March 1, 2021, our 2020 senior notes due April 1, 2020 and our 2019 convertible senior notes with semi-annual interest payments of $11,250 payable March 1 and September 1, $10,779 payable April 1 and October 1, and $747 payable March 1 and September 1, respectively. Also, the interest rate on our New Credit Facility is variable based on our election and the interest payments reflected in this table is based on the outstanding amount as of December 31, 2017 using the applicable 30-day LIBOR that was in effect on such date. Non-cash interest expense has been excluded from the table above.

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