CDIS Cal Dive International (MM)

Cal Dive Reports Record Second Quarter Earnings of 47 Cents HOUSTON, Aug. 4 /PRNewswire-FirstCall/ -- Cal Dive International, Inc. (NASDAQ:CDIS) reported second quarter net income of $18.2 million, or $0.47 per diluted share, essentially doubling the year ago net income of $8.9 million or $0.24 per diluted share. Second quarter revenues of $127.7 million increased 25% over the year ago quarter due primarily to improved levels of oil and gas production and higher commodity prices. Summary of Results (in thousands, except per share amounts and percentages) Second Quarter First Quarter Six Months 2004 2003 2004 2004 2003 Revenues $127,701 $101,839 $120,714 $248,416 $190,739 Gross Profit 41,415 24,197 31,741 73,157 43,393 32% 24% 26% 29% 23% Net Income 18,208 8,912 13,645 31,854 14,950 14% 9% 11% 13% 8% Diluted Earnings per share 0.47 0.24 0.36 0.83 0.39 Owen Kratz, Chairman and Chief Executive Officer of Cal Dive, stated, "It was very satisfying to establish record quarterly earnings, even though we are in the very early stages of a Marine Contracting recovery, still in the ramp up phase for Gunnison production and just beginning to see a contribution from our Production Facilities business segment. "Quarterly results from the Marine Contracting and Oil & Gas Production (ERT) segments both exceeded our expectations. In Marine Contracting, we made the best of continuing poor market conditions by focusing on cost-effective and incident-free performance, while in the Oil & Gas Production segment we not only benefited from high commodity prices, but also excelled at maximizing production from our core properties. "At the start of the year we predicted earnings for 2004 in the range of $1.30 to $1.70 per share, and stated that performance would be back loaded. After a good start, we now expect full year earnings near the top of the range." Financial Highlights * Revenues: The $25.9 million increase in year-over-year second quarter revenues reflects significantly higher oil and gas production and increases in commodity prices. * Margins: 32% was eight points better than the year ago quarter due primarily to the increased commodity prices and improved utilization and rates in the North Sea for the Seawell. * SG&A: $12.7 million increased $4.0 million from the same period a year ago due to the new Marine Contracting compensation system and the ERT incentive compensation program. With this increase, SG&A was 10% of second quarter revenues, compared to 8.5% a year ago. * Equity in Earnings: $1.3 million reflects our share of Deepwater Gateway, L.L.C.'s earnings for the quarter. This represents the kick off of earnings in our new Production Facilities segment as mechanical completion of the Marco Polo TLP occurred at the end of March 2004 triggering the beginning of monthly demand fees. Tariff income will begin in Q3 following the beginning of production at the TLP in mid-July. * Debt: EBITDA of $56.2 million for the second quarter, along with $30 million of proceeds from the completion of the convertible preferred issuance entered into in January 2003, enabled us to reduce total debt to $183 million (from $204 million at March 31, 2004) and build $67.3 million of unrestricted cash. This represents a debt to book capitalization ratio of 28% and a net debt to book capitalization ratio of 20%. Further details are provided in the presentation for Cal Dive's quarterly conference call (see the Investor Relations page of http://www.caldive.com/ ). The call, scheduled for 10:00 a.m. Central Daylight Time on Thursday, Aug. 5, will be webcast live. A replay will be available from the Audio Archives page. Cal Dive International, Inc., headquartered in Houston, Texas, is an energy service company which provides alternate solutions to the oil and gas industry worldwide for marginal field development, alternative development plans, field life extension and abandonment, with service lines including marine diving services, robotics, well operations, facilities ownership and oil and gas production. This press release and attached presentation contain forward-looking statements that involve risks, uncertainties and assumptions that could cause our results to differ materially from those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, any projections of revenue, gross margin, expenses, earnings or losses from operations, or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statement concerning developments, performance or industry rankings relating to services; any statements regarding future economic conditions or performance; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include the performance of contracts by suppliers, customers and partners; employee management issues; as described from time to time in our reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ending December 31, 2003. We assume no obligation and do not intend to update these forward-looking statements. CAL DIVE INTERNATIONAL, INC. Comparative Condensed Consolidated Statements of Operations Three Months Ended Six Months Ended June 30, June 30, (000's omitted, except per share data) 2004 2003 2004 2003 (unaudited) Net Revenues $127,701 $101,839 $248,416 $190,739 Cost of Sales 86,286 77,642 175,259 147,346 Gross Profit 41,415 24,197 73,157 43,393 Selling and Administrative 12,663 8,628 23,821 17,581 Income from Operations 28,752 15,569 49,336 25,812 Equity in Earnings (Losses) of Deepwater Gateway 1,310 --- 1,310 (107) Interest Expense (Income), net & Other 1,242 1,077 2,796 2,071 Income Before Income Taxes 28,820 14,492 47,850 23,634 Income Tax Provision 10,228 5,217 15,248 8,508 Income Before Change in Accounting Principle 18,592 9,275 32,602 15,126 Cumulative Effect of Change in Accounting Principle, net --- --- --- 530 Net Income 18,592 9,275 32,602 15,656 Preferred Stock Dividends and Accretion 384 363 748 706 Net Income Applicable to Common Shareholders $18,208 $8,912 $31,854 $14,950 Other Financial Data: Income from Operations $28,752 $15,569 $49,336 $25,812 Equity in Earnings (Losses) of Deepwater Gateway 1,310 --- 1,310 (107) Depreciation and Amortization: Marine Contracting 8,913 8,323 17,813 16,148 Oil and Gas Production 17,268 8,008 34,768 16,205 EBITDA (A) $56,243 $31,900 $103,227 $58,058 Weighted Avg. Shares Outstanding: Basic 38,180 37,634 38,063 37,593 Diluted 39,452 37,732 39,357 37,699 Earnings Per Share: Basic $0.48 $0.24 $0.84 $0.39 Diluted $0.47 $0.24 $0.83 $0.39 (A) The Company calculates EBITDA as earnings before net interest expense, taxes, depreciation and amortization. EBITDA is a supplemental non-GAAP financial measurement used by CDI and investors in the marine construction industry in the evaluation of its business due to the measurement being similar to performance of operations. Comparative Condensed Consolidated Balance Sheets ASSETS (000'S omitted) June 30, Dec. 31, 2004 2003 (unaudited) Current Assets: Cash and equivalents $67,308 $8,811 Accounts receivable 90,581 96,607 Other current assets 30,066 25,232 Total Current Assets 187,955 130,650 Net Property & Equipment: Marine Contracting 417,556 420,834 Oil and Gas Production 177,880 197,969 Production Facilities - Deepwater Gateway 50,300 34,517 Goodwill 82,458 81,877 Other assets, net 26,628 16,995 Total Assets $942,777 $882,842 LIABILITIES & SHAREHOLDERS' EQUITY June 30, Dec. 31, 2004 2003 (unaudited) Current Liabilities: Accounts payable $42,092 $50,897 Accrued liabilities 62,174 36,850 Current mat of L-T debt 15,736 16,199 Total Current Liabilities 120,002 103,946 Long-term debt 167,712 206,632 Deferred income taxes 103,725 89,274 Decommissioning liabilities 73,740 75,269 Other long term liabilities 1,351 2,042 Convertible preferred stock 54,016 24,538 Shareholders' equity 422,231 381,141 Total Liabilities & Equity $942,777 $882,842 DATASOURCE: Cal Dive International, Inc. CONTACT: Wade Pursell, Chief Financial Officer of Cal Dive International, Inc., +1-281-618-0400, or fax, +1-281-618-0505 Web site: http://www.caldive.com/

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