Press Release
View printer-friendly version |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| << Back | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Hornbeck Offshore Announces Third Quarter 2010 Results
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
COVINGTON, La., Nov. 4, 2010 /PRNewswire via COMTEX/ -- Hornbeck Offshore Services, Inc. (NYSE: HOS) announced today results for the third quarter ended September 30, 2010. Following are highlights for this period and the Company's future outlook:
Third quarter 2010 revenues increased 39.2% to $125.4 million compared to $90.1 million for the third quarter of 2009 and increased 12.1% compared to $111.9 million for the second quarter of 2010. Operating income was $43.3 million, or 34.5% of revenues, for the third quarter of 2010 compared to $27.1 million, or 30.1% of revenues, for the prior-year quarter; and $34.5 million, or 30.8% of revenues, for the second quarter of 2010. Net income for the third quarter of 2010 was $18.2 million, or $0.67 per diluted share, compared to $13.8 million, or $0.51 per diluted share for the year-ago quarter; and $13.0 million, or $0.48 per diluted share for the second quarter of 2010. EBITDA for the third quarter of 2010 was $63.1 million compared to third quarter 2009 EBITDA of $43.6 million and second quarter 2010 EBITDA of $54.1 million. The year-over-year increase in revenues, operating income, EBITDA and EPS was primarily due to incremental revenues from the vessels placed in service since September 2009 under the Company's newbuild and conversion programs. For additional information regarding EBITDA as a non-GAAP financial measure, please see Note 10 to the accompanying data tables. Upstream Segment.Revenues from the Upstream segment were $112.0 million for the third quarter of 2010, an increase of $38.3 million, or 52.0%, from $73.7 million for the third quarter in 2009 and an increase of $11.5 million, or 11.4%, from $100.5 million for the second quarter of 2010. The vessels placed in service since the third quarter of 2009 under the Company's newbuild and conversion programs accounted for a $33.3 million increase in Upstream revenues. The remaining $5.0 million increase in Upstream revenues is from the Company's new generation OSVs and MPSVs that were in service during each of the quarters ended September 30, 2010 and 2009. Upstream operating income increased $16.3 million to $40.1 million, or 35.8% of revenues, for the third quarter of 2010 from $23.8 million, or 32.3% of revenues, for the third quarter of 2009. Average new generation OSV dayrates for the third quarter of 2010 were $21,628 compared to $20,915 for the same period in 2009 and $23,874 for the second quarter of 2010. The Company's second-quarter 2010 new generation OSV dayrates were favorably impacted by certain non-recurring revenues for one of its specialty service vessels unrelated to the oil spill response efforts in the U.S. Gulf of Mexico ("GoM").Excluding these revenues for the sake of comparability to other periods, the Company's new generation OSV average dayrates for the sequential period would have been $20,628. The increase in third-quarter 2010 dayrates over the prior-year quarter and the adjusted sequential quarter was largely due to higher temporary demand related to oil spill response activities. During the third quarter of 2010, the Company had as many as 11 OSVs and four MPSVs assisting with oil spill-related activities, which represented nearly 30% of the total Upstream vessel-days worked. As of November 1, 2010, only seven new generation OSVs and one MPSV remained on charter related to oil spill response activities, which are in various stages of winding down over the next one to six weeks. New generation OSV utilization was 75.7% for the third quarter of 2010 compared to 71.9% during the year-ago quarter and 71.8% for the sequential quarter. The increase in utilization was driven by oil spill response activities, which was partially offset by having 469 days out-of-service related to stacked vessels and approximately 326 days of aggregate downtime related to customer-required modifications and pre-positioning of five vessels that were mobilized to Latin America during 2010 for multi-year charters. These five vessels commenced their charters with Petrobras in late September 2010. The Company had five new generation OSVs stacked as of September 30, 2010 compared to seven vessels stacked as of June 30, 2010. The Company had an average of 5.1 stacked new generation OSVs during the third quarter of 2010 compared to quarterly averages of 6.0 stacked vessels during the year-ago quarter and 7.4 stacked vessels during the sequential quarter. Effective new generation OSV utilization for the Company's active fleet, which excludes the impact of stacked vessels, was 84.2% for the third quarter of 2010 compared to 83.2% for the year-ago quarter and 84.5% for the sequential quarter. Downstream Segment.Revenues from the Downstream segment of $13.4 million for the third quarter of 2010 decreased by $3.0 million, or 18.3%, compared to $16.4 million for the same period in 2009, but were higher than the sequential quarter by $2.0 million, or 17.5%. This year-over-year revenue decline was largely due to $5.4 million of incremental revenues related to well-test cancellation fees recognized during the third quarter of 2009. Excluding the well-test cancellation fees, our Downstream revenues would have increased year-over-year by $2.4 million, or 21.8% compared to the third quarter of 2009. The Company's Downstream revenues for the third quarter of 2010 were favorably impacted by one double-hulled tank barge performing well-test services for an Upstream customer in the GoM and five double-hulled tank barges temporarily supporting oil spill response activities. As of November 1, 2010, only two of the five double-hulled tank barges remained on charter related to oil spill response activities. The Company's double-hulled tank barge average dayrates were $18,615 for the third quarter of 2010 compared to $28,503 for the same period in 2009. Excluding the incremental well-test revenues and well-test cancellation fee revenues, our average double-hulled tank barge dayrates would have been $16,430 and $18,852 for the third quarters of 2010 and 2009, respectively. Utilization for the double-hulled tank barge fleet was 86.9% for the third quarter of 2010 compared to 67.6% for the same period in 2009. Utilization improved largely due to increased activity related to the oil spill response activities. General and Administrative ("G&A"). G&A expenses of $9.7 million for the third quarter of 2010 were 7.7% of revenues compared to $6.9 million, or 7.7% of revenues, for the third quarter of 2009. This increase in G&A expense is primarily attributable to higher personnel costs compared to the prior-year quarter commensurate with the Company's larger, more geographically diverse fleet. Third quarter G&A expense margin was lower than the Company's 2010 annual guidance range of 9% to 11% of revenues. The Company allocated 93% of its third quarter 2010 G&A expenses to the Upstream segment and 7% to the Downstream segment. Depreciation and Amortization. Depreciation and amortization expense was $19.8 million for the third quarter of 2010, or $3.3 million higher than the prior-year quarter. This increase was due to the incremental depreciation related to seven new generation OSVs and two MPSVs that were placed in service since the third quarter of 2009. Depreciation and amortization expense is expected to continue to increase from current levels when any recently acquired and newly constructed vessels undergo their initial 30-month and 60-month recertifications. Interest Expense. Interest expense increased $8.8 million during the three months ended September 30, 2010 compared to the same period in 2009. The increase in interest expense is primarily attributable to incremental interest costs related to the Company's August 2009 issuance of $250.0 million of 8.000% senior notes due 2017, and lower capitalized interest because the Company had fewer vessels being constructed under its newbuild and conversion programs. The Company capitalized $0.3 million of construction period interest for the third quarter of 2010, which represents 2% of its total interest costs for the quarter, compared to $6.2 million for the year-ago quarter, or 53% of its total interest costs for such quarter. With its newbuild and conversion programs now complete, the Company expects to capitalize annual construction period interest of $3.7 million, or 6% of its estimated total interest costs for the full fiscal year 2010. Nine Month Results Revenues for the first nine months of 2010 increased 8.7% to $323.5 million compared to $297.6 million for the same period in 2009. Operating income was $93.5 million, or 28.9% of revenues, for the first nine months of 2010 compared to $77.5 million, or 26.0% of revenues, for the prior-year period. Net income for the first nine months of 2010 decreased 17.8% to $33.8 million, or $1.24 per diluted share, compared to $41.1 million, or $1.52 per diluted share for the first nine months of 2009. Excluding the June 2009 Downstream non-cash impairment charge in the amount of $26.7 million, or $0.62 per diluted share, operating income, net income and diluted EPS for the first nine months of 2009 were $104.2 million, $58.0 million and $2.15 per share, respectively. The year-over-year decrease in adjusted operating income and net income was substantially due to the incremental costs for mobilizing eight vessels to Latin America for multi-year charters. The Company's revenues for the first nine months of 2010 were higher than the same period in 2009 due to the incremental contributions from vessels added to the Company's fleet through its newbuild and conversion programs since the third quarter of 2009. The Company's net income for the first nine months of 2010 included an aggregate pre-tax gain of $1.2 million ($0.8 million after tax or $0.03 per diluted share) for the sale of oneconventional OSV and one older, lower horsepower tug. The Company's net income for the first nine months of 2009 included an aggregate pre-tax gain of $0.3 million ($0.2 million after tax or $0.01 per diluted share) for the sale of one older, lower horsepower tug and three conventional OSVs. Recent Developments Status of Pending Legal Actions Against the Department of the Interior ("DOI"). On October 12, 2010, Interior Secretary Salazar lifted the drilling moratoria that were subject to challenge by the Company and others. The Company believes that the early success of its moratorium litigation resulted in the DOI abandoning the moratorium sooner than if it had been left unchallenged. However significant new regulatory requirements must now be met by the oil & gas industry before drilling activity in the GoM resumes in substantial measure. Status of MC-252 Oil Spill Vessel Decontamination Process. In coordination with the Coast Guard, BP established a vessel decontamination process for all vessels that were impacted by the oil spill or dispersants during the oil spill containment efforts at MC-252. The vessel decontamination process has generally lasted 15 to 30 days for OSVs and 30 days for MPSVs. All of the Company's vessels have remained on charter while undergoing the decontamination process. In addition, BP has borne the entire shipyard costs related to this effort. Of the vessels that the Company had deployed on the MC-252 oil spill response, seven OSVs, one MPSV, two barges and two tugs have yet to complete their respective decontamination processes. The Company expects that these vessels will be decontaminated and redelivered on various dates within the next one to six weeks. Future Outlook Based on the key assumptions outlined below and in the attached data tables, the following statements reflect management's current expectations regarding future earnings and certain events. These statements are forward-looking and actual results may differ materially. Other than as expressly stated, these statements do not include the potential impact of any future capital transactions, such as vessel acquisitions, divestitures, unexpected vessel repairs, shipyard delays, business combinations, financings and unannounced newbuild programs that may be commenced after the date of this disclosure. Additional information concerning forward-looking statements can be found on page 9 of this news release. Earnings Outlook Updated Annual 2010 Guidance. The Company expects total EBITDA for fiscal 2010 to range between $170.0 million and $190.0 million and expects full-year diluted EPS for fiscal 2010 to range between $0.89 and $1.35. Excluding incremental non-cash OID interest expense related to the Company's convertible senior notes, adjusted EPS for fiscal 2010 is expected to range between $1.12 and $1.58. Pro Forma Run-Rate Guidance. The two pro forma run-rate illustrations provided in the attached data tables, and further described in Note 11, are intended to demonstrate the hypothetical annual earnings power of the Company's full-fleet complement operating at normal utilization levels under different market conditions and do not reflect actual or projected results for any specific period. In addition, such guidance reflects an estimated annual run-rate of amortization expense assuming that all vessels in the Company's current fleet complement have incurred their initial regulatory drydocking, notwithstanding that such event does not typically occur until approximately 30 months after each such vessel's original acquisition or newbuild delivery date. Key Assumptions. The Company's forward earnings guidance, outlined above and in the attached data tables, has been updated to reflect its actual year-to-date results and the substantial uncertainty that exists in the GoM and the expected continuation of weak demand for petroleum products for the remainder of 2010. Market conditions during the third quarter were substantially, and favorably, impacted by demand for oil spill response and containment vessels, which is not expected to continue to the same degree during the fourth quarter. The Company's full-year 2010 Upstream guidance includes a partial-year contribution from new vessels delivered in 2010 under its MPSV program and its fourth OSV newbuild program in accordance with the actual newbuild delivery results discussed below. With the September 2010 delivery of the DP-2 HOS Wildwing, the Company now owns 51 new generation OSVs. The vessel additions under the fourth OSV newbuild program, which is now complete, should result in an average new generation OSV fleet complement of 51.0 and 49.9 vessels for the fourth quarter of 2010 and the full fiscal year 2010, respectively. As of September 30, 2010, the Company had five inactive new generation vessels stacked and expects to stack at least four additional new generation OSVs during the fourth quarter as such vessels are released from their oil spill relief spot charters. The current Upstream guidance gives effect to a quarterly average of 7.7 and an annual average of 7.1 new generation OSVs being stacked for the fourth quarter and full fiscal year 2010, respectively. Accordingly, the Company's active fleet of new generation OSVs, which averaged 39.2 vessels for fiscal 2009, is expected to average 43.3 vessels for the fourth quarter of 2010 and 42.8 vessels for the full fiscal year 2010. Fleetwide average new generation OSV dayrates are anticipated to be in the $20,000 to $22,000 range and fleetwide new generation OSV utilization for the 49.9-vessel fleet is anticipated to average in the 70% to 75% range during the full fiscal year 2010 guidance period. This average utilization for fiscal 2010 estimate contemplates approximately 2,574 aggregate days out-of-service related to stacked vessels and approximately 962 days of aggregate downtime, all of which were incurred during the first nine months of 2010, related to customer-required modifications and pre-positioning of the eight vessels that have mobilized to Latin America during 2010 for multi-year charters. The Company expects that cash operating expenses per OSV vessel-day in fiscal 2010 will be in-line with fiscal 2009 levels for vessels that were in service for each of the past two years, excluding contract-related costs-of-sales recoverable through higher dayrates or other revenue. However, the Company may incur repositioning expenses that are not recoverable through charter hire in connection with the relocation of some of its vessels into international markets. The Company owns and is operating an average MPSV fleet complement of 3.8 vessels in the spot market for the fiscal year 2010. However, the DP-3 HOS Achiever incurred roughly 110 days out-of-service during the first half of 2010 for the installation of a 100-ton crane in Norway. This crane installation downtime reduced the effective MPSV fleet complement for the year to 3.5 vessel-equivalents, up from 1.8 vessels in fiscal 2009. Based on the Company's current spot dayrate and utilization assumptions for its four MPSVs, these vessels are expected to produce EBITDA in the 23% to 28% range of the mid-point of the company-wide fiscal 2010 guidance range compared to approximately 15% of the Company's actual EBITDA for fiscal 2009. The 2010 Downstream guidance reflects an active operating fleet comprised of nine double-hulled tank barges and nine ocean-going tugs for the fiscal year 2010. These vessels are projected to contribute EBITDA in the range of 6% to 7% of the mid-point of the company-wide fiscal 2010 guidance range compared to approximately 8% of the Company's actual EBITDA for fiscal 2009. The Company will consider stacking one or more double-hulled barges and additional tugs in its Downstream segment during the fourth quarter 2010 to deter further operating margin declines. G&A expenses are expected to be in the range of 9% to 11% of revenues for the 2010 guidance period. The projected annual stock-based compensation expense, depreciation, amortization and net interest expense that underpin the Company's diluted EPS guidance for the full-year 2010 are included in the attached data tables. Projected quarterly stock-based compensation expense, depreciation, amortization and net interest expense for the quarter ending December 31, 2010 are expected to be $2.2 million, $15.1 million, $4.9 million and $14.6 million, respectively. The Company's annual effective tax rate is expected to be 37.2% for fiscal 2010. Capital Expenditures Outlook Update on Maintenance and Other Capital Expenditures. Please refer to the attached data table for a summary, by period, of historical and projected data for maintenance and other capital expenditures. Maintenance capital expenditures, which are recurring in nature, primarily include regulatory drydocking charges incurred for the recertification of vessels and other vessel capital improvements that extend a vessel's economic useful life. Other capital expenditures, which are generally non-recurring, are comprised of the following: (i) commercial-related vessel improvements, such as cranes, remotely operated vehicles ("ROVs") and other specialized vessel equipment, which costs are typically included in and offset by higher dayrates charged to customers; and (ii) non-vessel related capital expenditures, including costs related to the Company's shore-based facilities or leasehold improvements and other corporate expenditures, such as information technology or office furniture and equipment. The Company expects maintenance capital expenditures and other capital expenditures to be approximately $30.5 million and $19.4 million, respectively for the full-year 2010. Over the next few years beyond 2010, the Company expects that its annually recurring maintenance capital expenditure budget for its growing fleet of vessels will range between $35.0 million and $45.0 million per year. Completion of OSV Newbuild Program #4. The Company's fourth OSV newbuild program consisted of vessel construction contracts with three domestic shipyards to build six 240 ED class OSVs, nine 250 EDF class OSVs and one 290 class OSV, respectively. With the September 2010 delivery of the ninth 250 EDF class OSV, the HOS Wildwing, the Company's fourth OSV newbuild program is now complete. Inclusive of the vessel delivery referred to above, the aggregate cost of this program was approximately $431.5 million. From the inception of this program through September 30, 2010, the Company has incurred $431.2 million of total expected project costs, including $4.0 million incurred during the third quarter of 2010. The final remaining $0.3 million of project costs was paid during the early fourth quarter of 2010. Please refer to the attached data tables for a summary, by period, of historical and/or projected data for each of the Company's recent growth initiatives. The remaining capital costs to be incurred, which are outlined above, are based on the latest available information and are subject to change. All of the figures set forth above represent expected cash outlays and do not include the allocation of construction period interest. Conference Call The Company will hold a conference call to discuss its third quarter 2010 financial results and recent developments at 10:00 a.m. Eastern (9:00 a.m. Central) today, November 4, 2010. To participate in the call, dial (480) 629-9773 and ask for the Hornbeck Offshore call at least 10 minutes prior to the start time. To access it live over the Internet, please log onto the web at http://www.hornbeckoffshore.com, on the "IR Home" page of the "Investors" section of the Company's website at least fifteen minutes early to register, download and install any necessary audio software. Please call the Company's investor relations firm, DRG&L, at (713) 529-6600 to be added to its e-mail distribution list for future Hornbeck Offshore news releases. An archived version of the web cast will be available shortly after the call for a period of 60 days on the "IR Home" page under the "Investors" section of the Company's website. Additionally, a telephonic replay will be available through November 11, 2010, and may be accessed by calling (303) 590-3030 and using the pass code 4374724#. Attached Data Tables The Company has posted an electronic version of the following three pages of data tables, which are downloadable in Microsoft Excel format, on the "IR Home" page of the "Investors" section of the Hornbeck Offshore website for the convenience of analysts and investors. Hornbeck Offshore Services, Inc. is a leading provider of technologically advanced, new generation offshore supply vessels primarily in the U.S. Gulf of Mexico and Latin America, and is a leading short-haul transporter of petroleum products through its coastwise fleet of ocean-going tugs and tank barges primarily in the northeastern U.S. and the U.S. Gulf of Mexico. Hornbeck Offshore currently owns a fleet of over 80 vessels primarily serving the energy industry. Forward-Looking Statements This Press Release contains "forward-looking statements," as contemplated by the Private Securities Litigation Reform Act of 1995, in which the Company discusses factors it believes may affect its performance in the future. Forward-looking statements are all statements other than historical facts, such as statements regarding assumptions, expectations, beliefs and projections about future events or conditions. You can generally identify forward-looking statements by the appearance in such a statement of words like "anticipate," "believe," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "might," "plan," "potential," "predict," "project," "remain," "should," or "will," or other comparable words or the negative of such words. The accuracy of the Company's assumptions, expectations, beliefs and projections depends on events or conditions that change over time and are thus susceptible to change based on actual experience, new developments and known and unknown risks. The Company gives no assurance that the forward-looking statements will prove to be correct and does not undertake any duty to update them. The Company's actual future results might differ from the forward-looking statements made in this Press Release for a variety of reasons, including the effect of the slow-down in the issuance of drilling and other permits in the Gulf of Mexico due to government regulations. Future results may also be impacted by proposed federal legislation or regulations that may be implemented in response to the Deepwater Horizon event. Such regulations or legislation could further aggravate a number of other existing risks, uncertainties and assumptions, including, without limitation: less than anticipated success in marketing and operating the Company's MPSVs; bureaucratic, administrative or operating barriers that delay vessels chartered in foreign markets from going on-hire or result in contractual penalties imposed by foreign customers; further weakening of demand for the Company's services; inability to effectively curtail operating expenses from stacked vessels; unplanned customer suspensions, cancellations, rate reductions or non-renewals of vessel charters or failures to finalize commitments to charter vessels; industry risks; further reductions in capital spending budgets by customers; decline in oil and natural gas prices; increases in operating costs; the inability to accurately predict vessel utilization levels and dayrates; the inability to effectively compete in or operate in international markets, less than anticipated subsea infrastructure demand activity in the U.S. Gulf of Mexico and other markets; the level of fleet additions by competitors that could result in over capacity; economic and political risks; weather related risks; the inability to attract and retain qualified marine personnel; regulatory risks; the repeal or administrative weakening of the Jones Act; the imposition of laws or regulations that result in reduced exploration and production activities or that increase the Company's operating costs or operating requirements, including any such laws or regulations that may arise as a result of the recent drilling and lease moratorium or as a result of the oil spill disaster in the Gulf of Mexico; drydocking delays and cost overruns and related risks; vessel accidents or pollution incidents resulting in lost revenue or expenses that are unrecoverable from insurance policies or other third parties; unexpected litigation and insurance expenses; fluctuations in foreign currency valuations compared to the U.S. dollar and risks associated with expanded foreign operations, such as non-compliance with or the unanticipated effect of tax laws, customs laws, immigration laws, or other legislation that result in higher than anticipated tax rates or other costs. In addition, the Company's future results may be impacted by adverse economic conditions, such as inflation, deflation, or lack of liquidity in the capital markets, that may negatively affect it or parties with whom it does business resulting in their non-payment or inability to perform obligations owed to the Company, such as the failure of customers to fulfill their contractual obligations or the failure by individual banks to provide expected funding under the Company's credit agreement. Should one or more of the foregoing risks or uncertainties materialize in a way that negatively impacts the Company, or should the Company's underlying assumptions prove incorrect, the Company's actual results may vary materially from those anticipated in its forward-looking statements, and its business, financial condition and results of operations could be materially and adversely affected. Additional factors that you should consider are set forth in detail in the Risk Factors section of the Company's most recent Annual Report on Form 10-K as well as other filings the Company has made and will make with the Securities and Exchange Commission which, after their filings, can be found on the Company's website www.hornbeckoffshore.com. Regulation G Reconciliation This Press Release also contains references to the non-GAAP financial measures of earnings, or net income, before interest, income taxes, depreciation and amortization, or EBITDA, and Adjusted EBITDA. The Company views EBITDA and Adjusted EBITDA primarily as liquidity measures and, therefore, believes that the GAAP financial measure most directly comparable to such measure is cash flows provided by operating activities. Reconciliations of EBITDA and Adjusted EBITDA to cash flows provided by operating activities are provided in the table below. Management's opinion regarding the usefulness of EBITDA to investors and a description of the ways in which management uses such measure can be found in the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, as well as in Note 10 to the attached data tables.
SOURCE Hornbeck Offshore Services, Inc. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||