SEC Filings

10-Q
HORNBECK OFFSHORE SERVICES INC /LA filed this Form 10-Q on 05/09/2018
Entire Document
 

The following table provides the detailed components of EBITDA as we define that term for the three months ended March 31, 2018 and 2017, respectively (in thousands):
 
Three Months Ended 
 March 31,
 
2018
 
2017
Components of EBITDA:
 
 
 
Net loss
$
(38,655
)
 
$
(27,898
)
Interest, net
 
 
 
Debt obligations
13,945

 
13,809

Interest income
(644
)
 
(401
)
Total interest, net
13,301

 
13,408

Income tax benefit
(8,491
)
 
(12,314
)
Depreciation
24,648

 
24,677

Amortization
1,992

 
3,724

EBITDA
$
(7,205
)
 
$
1,597

The following table reconciles EBITDA to cash flows provided by operating activities for the three months ended March 31, 2018 and 2017, respectively (in thousands):
 
Three Months Ended March 31,
 
2018
 
2017
EBITDA Reconciliation to GAAP:
 
 
 
EBITDA
$
(7,205
)
 
$
1,597

Cash paid for deferred drydocking charges
(1,970
)
 
(3,129
)
Cash paid for interest
(15,131
)
 
(13,756
)
Cash paid for taxes
(449
)
 
(349
)
Changes in working capital
12,833

 
6,246

Stock-based compensation expense
2,868

 
2,042

Gain on sale of assets
(43
)
 
(18
)
Changes in other, net
223

 
3,748

Net cash flows used in operating activities
$
(8,874
)
 
$
(3,619
)
In addition, we have also historically made certain adjustments, as applicable, to EBITDA for losses on early extinguishment of debt, stock-based compensation expense and interest income, to internally evaluate our performance based on the computation of ratios used in certain financial covenants of our credit agreements with various lenders, whenever applicable. We believe that such ratios can, at times, be material components of financial covenants and, when applicable, failure to comply with such covenants could result in the acceleration of indebtedness or the imposition of restrictions on our financial flexibility.
The following table provides certain detailed adjustments to EBITDA, as defined in our first-lien credit facility, for the three months ended March 31, 2018 and 2017, respectively (in thousands):
 
Three Months Ended 
 March 31,
 
2018
 
2017
Stock-based compensation expense
$
2,868

 
$
2,042

Interest income
644

 
401

Set forth below are the material limitations associated with using EBITDA as a non-GAAP financial measure compared to cash flows provided by operating activities.
EBITDA does not reflect the future capital expenditure requirements that may be necessary to replace our existing vessels as a result of normal wear and tear,

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