Helix Reports First Quarter 2023 Results
Helix Energy Solutions Group reported a net loss of $5.2 million or $(0.03) per diluted share for Q1 2023, reversing from a net income of $2.7 million in Q4 2022 and a loss of $42 million in Q1 2022. Adjusted EBITDA was $35.1 million, down from $49.2 million in Q4 2022, but significantly up from $2.5 million in Q1 2022. Revenues reached $250.1 million, an increase from $150.1 million year-over-year. Operating losses for Well Intervention totaled $8.1 million, while Robotics operations saw an increase in revenues by 32% year-over-year. Helix has projected improved performance with ongoing projects and a robust outlook for the remainder of 2023, including share repurchase programs to align with cash generation.
- Revenues improved to $250.1 million, a 67% year-over-year increase.
- Robotics revenue increased by 32% compared to Q1 2022.
- Strong outlook for Q2 2023 with new projects and improved utilization expected.
- Net loss of $5.2 million indicates ongoing financial challenges.
- Adjusted EBITDA decreased to $35.1 million from $49.2 million in Q4 2022.
- Well Intervention segment reported a $8.1 million operating loss.
Helix reported adjusted EBITDA1 of
Summary of Results ($ in thousands, except per share amounts, unaudited) |
|||||||||||
| Three Months Ended | |||||||||||
| Revenues | $ |
250,084 |
|
$ |
150,125 |
|
$ |
287,816 |
|
||
| Gross Profit (Loss) | $ |
15,184 |
|
$ |
(18,609 |
) |
$ |
31,364 |
|
||
|
6 |
% |
|
(12 |
)% |
|
11 |
% |
|||
| Net Income (Loss) | $ |
(5,165 |
) |
$ |
(42,031 |
) |
$ |
2,709 |
|
||
| Diluted Earnings (Loss) Per Share | $ |
(0.03 |
) |
$ |
(0.28 |
) |
$ |
0.02 |
|
||
| Adjusted EBITDA1 | $ |
35,094 |
|
$ |
2,526 |
|
$ |
49,169 |
|
||
| Cash and Cash Equivalents2 | $ |
166,674 |
|
$ |
229,744 |
|
$ |
186,604 |
|
||
| Net Debt1 | $ |
91,278 |
|
$ |
(1,065 |
) |
$ |
74,964 |
|
||
| Cash Flows from Operating Activities | $ |
(5,392 |
) |
$ |
(17,413 |
) |
$ |
49,712 |
|
||
| Free Cash Flow1 | $ |
(11,692 |
) |
$ |
(18,036 |
) |
$ |
21,198 |
|
||
1 Adjusted EBITDA, Net Debt and Free Cash Flow are non-GAAP measures; see reconciliations below
2 Excludes restricted cash of |
|||||||||||
Segment Information, Operational and Financial Highlights ($ in thousands, unaudited) |
|||||||||||
| Three Months Ended | |||||||||||
| Revenues: | |||||||||||
| Well Intervention | $ |
142,438 |
|
$ |
106,367 |
|
$ |
167,658 |
|
||
| Robotics |
|
49,222 |
|
|
37,351 |
|
|
48,538 |
|
||
| Shallow Water Abandonment1 |
|
49,381 |
|
|
- |
|
|
57,409 |
|
||
| Production Facilities |
|
20,905 |
|
|
18,294 |
|
|
27,895 |
|
||
| Intercompany Eliminations |
|
(11,862 |
) |
|
(11,887 |
) |
|
(13,684 |
) |
||
| Total | $ |
250,084 |
|
$ |
150,125 |
|
$ |
287,816 |
|
||
| Income (Loss) from Operations: | |||||||||||
| Well Intervention | $ |
(8,143 |
) |
$ |
(31,758 |
) |
$ |
2,554 |
|
||
| Robotics |
|
5,094 |
|
|
1,480 |
|
|
7,127 |
|
||
| Shallow Water Abandonment1 |
|
6,822 |
|
|
- |
|
|
5,864 |
|
||
| Production Facilities |
|
5,157 |
|
|
5,851 |
|
|
9,237 |
|
||
| Change in Fair Value of Contingent Consideration |
|
(3,992 |
) |
|
- |
|
|
(13,390 |
) |
||
| Corporate / Other / Eliminations |
|
(13,241 |
) |
|
(8,550 |
) |
|
(16,520 |
) |
||
| Total | $ |
(8,303 |
) |
$ |
(32,977 |
) |
$ |
(5,128 |
) |
||
| 1 Shallow Water Abandonment includes the results of |
|||||||||||
Segment Results
Well Intervention
Well Intervention revenues decreased
Well Intervention revenues increased
Robotics
Robotics revenues increased
Robotics revenues increased
Shallow Water Abandonment
Shallow Water Abandonment revenues decreased
Production Facilities
Production Facilities revenues decreased
Production Facilities revenues increased
Selling, General and Administrative and Other
Share Repurchases
Cash flows during the first quarter 2023 included
Selling, General and Administrative
Selling, general and administrative expenses were
Acquisition and Integration Costs
Acquisition and integration costs were
Change in Fair Value of Contingent Consideration
Change in fair value of contingent consideration was
Other Income and Expenses
Other income, net was
Cash Flows
Operating cash flows were
Capital expenditures, which are included in investing cash flows, totaled
Free Cash Flow was
Financial Condition and Liquidity
Cash and cash equivalents were
Conference Call Information
Further details are provided in the presentation for Helix’s quarterly teleconference to review its first quarter 2023 results (see the "For the Investor" page of Helix's website, www.helixesg.com). The teleconference, scheduled for
About Helix
Non-GAAP Financial Measures
Management evaluates operating performance and financial condition using certain non-GAAP measures, primarily EBITDA, Adjusted EBITDA, Free Cash Flow and Net Debt. We define EBITDA as earnings before income taxes, net interest expense, gains or losses on extinguishment of long-term debt, gains and losses on equity investments, net other income or expense, and depreciation and amortization expense. Non-cash impairment losses on goodwill and other long-lived assets are also added back if applicable. To arrive at our measure of Adjusted EBITDA, we exclude the gain or loss on disposition of assets, acquisition and integration costs, the change in fair value of the contingent consideration and the general provision (release) for current expected credit losses, if any. We define Free Cash Flow as cash flows from operating activities less capital expenditures, net of proceeds from sale of assets. Net Debt is calculated as long-term debt including current maturities of long-term debt less cash and cash equivalents and restricted cash.
We use EBITDA, Adjusted EBITDA, Free Cash Flow and Net Debt to monitor and facilitate internal evaluation of the performance of our business operations, to facilitate external comparison of our business results to those of others in our industry, to analyze and evaluate financial and strategic planning decisions regarding future investments and acquisitions, to plan and evaluate operating budgets, and in certain cases, to report our results to the holders of our debt as required by our debt covenants. We believe that our measures of EBITDA, Adjusted EBITDA, Free Cash Flow and Net Debt provide useful information to the public regarding our operating performance and ability to service debt and fund capital expenditures and may help our investors understand and compare our results to other companies that have different financing, capital and tax structures. Other companies may calculate their measures of EBITDA, Adjusted EBITDA, Free Cash Flow and Net Debt differently from the way we do, which may limit their usefulness as comparative measures. EBITDA, Adjusted EBITDA, Free Cash Flow and Net Debt should not be considered in isolation or as a substitute for, but instead are supplemental to, income from operations, net income, cash flows from operating activities, or other income or cash flow data prepared in accordance with GAAP. Users of this financial information should consider the types of events and transactions that are excluded from these measures. See reconciliation of the non-GAAP financial information presented in this press release to the most directly comparable financial information presented in accordance with GAAP.
Forward-Looking Statements
This press release contains 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 "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, any statements regarding: our plans, strategies and objectives for future operations; visibility and future utilization; energy transition or energy security; any projections of financial items including projections as to guidance and other outlook information; our share repurchase authorization or program; our ability to identify, effect and integrate acquisitions, joint ventures or other transactions, including the integration of the Alliance acquisition; the COVID-19 pandemic and oil price volatility and their respective effects and results; our protocols and plans; our current work continuing; the spot market; our spending and cost management efforts and our ability to manage changes; future operations expenditures; our ability to enter into, renew and/or perform commercial contracts; developments; our environmental, social and governance (“ESG”) initiatives; future economic conditions or performance; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements are subject to a number of known and unknown risks, uncertainties and other factors that could cause results to differ materially from those in the forward-looking statements, including but not limited to market conditions; results from acquired properties; demand for our services; the performance of contracts by suppliers, customers and partners; actions by governmental and regulatory authorities; the results and effects of the COVID-19 pandemic and actions by governments, customers, suppliers and partners with respect thereto; operating hazards and delays, which include delays in delivery, chartering or customer acceptance of assets or terms of their acceptance; our ability to secure and realize backlog; the effectiveness of our ESG initiatives and disclosures; human capital management issues; complexities of global political and economic developments; geologic risks; volatility of oil and gas prices and other risks described from time to time in our filings with the
| Comparative Condensed Consolidated Statements of Operations | ||||||||
| Three Months Ended |
||||||||
| (in thousands, except per share data) | 2023 |
2022 |
||||||
| (unaudited) | ||||||||
| Net revenues | $ |
250,084 |
|
$ |
150,125 |
|
||
| Cost of sales |
|
234,900 |
|
|
168,734 |
|
||
| Gross profit (loss) |
|
15,184 |
|
|
(18,609 |
) |
||
| Gain on disposition of assets, net |
|
367 |
|
|
- |
|
||
| Acquisition and integration costs |
|
(231 |
) |
|
- |
|
||
| Change in fair value of contingent consideration |
|
(3,992 |
) |
|
- |
|
||
| Selling, general and administrative expenses |
|
(19,631 |
) |
|
(14,368 |
) |
||
| Loss from operations |
|
(8,303 |
) |
|
(32,977 |
) |
||
| Net interest expense |
|
(4,187 |
) |
|
(5,174 |
) |
||
| Other income (expense), net |
|
3,444 |
|
|
(3,881 |
) |
||
| Royalty income and other |
|
1,863 |
|
|
2,141 |
|
||
| Loss before income taxes |
|
(7,183 |
) |
|
(39,891 |
) |
||
| Income tax provision (benefit) |
|
(2,018 |
) |
|
2,140 |
|
||
| Net loss | $ |
(5,165 |
) |
$ |
(42,031 |
) |
||
| Loss per share of common stock: | ||||||||
| Basic | $ |
(0.03 |
) |
$ |
(0.28 |
) |
||
| Diluted | $ |
(0.03 |
) |
$ |
(0.28 |
) |
||
| Weighted average common shares outstanding: | ||||||||
| Basic |
|
151,764 |
|
|
151,142 |
|
||
| Diluted |
|
151,764 |
|
|
151,142 |
|
||
| Comparative Condensed Consolidated Balance Sheets | ||||||||
| (in thousands) | (unaudited) | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ |
166,674 |
|
$ |
186,604 |
|
||
| Restricted cash |
|
2,508 |
|
|
2,507 |
|
||
| Accounts receivable, net |
|
216,946 |
|
|
212,779 |
|
||
| Other current assets |
|
63,228 |
|
|
58,699 |
|
||
| Total Current Assets |
|
449,356 |
|
|
460,589 |
|
||
| Property and equipment, net |
|
1,626,151 |
|
|
1,641,615 |
|
||
| Operating lease right-of-use assets |
|
191,051 |
|
|
197,849 |
|
||
| Deferred recertification and dry dock costs, net |
|
53,697 |
|
|
38,778 |
|
||
| Other assets, net |
|
49,079 |
|
|
50,507 |
|
||
| Total Assets | $ |
2,369,334 |
|
$ |
2,389,338 |
|
||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ |
134,363 |
|
$ |
135,267 |
|
||
| Accrued liabilities |
|
60,811 |
|
|
73,574 |
|
||
| Current maturities of long-term debt |
|
38,452 |
|
|
38,200 |
|
||
| Current operating lease liabilities |
|
54,407 |
|
|
50,914 |
|
||
| Total Current Liabilities |
|
288,033 |
|
|
297,955 |
|
||
| Long-term debt |
|
222,008 |
|
|
225,875 |
|
||
| Operating lease liabilities |
|
145,186 |
|
|
154,686 |
|
||
| Deferred tax liabilities |
|
97,577 |
|
|
98,883 |
|
||
| Other non-current liabilities |
|
100,810 |
|
|
95,230 |
|
||
| Shareholders' equity |
|
1,515,720 |
|
|
1,516,709 |
|
||
| Total Liabilities and Equity | $ |
2,369,334 |
|
$ |
2,389,338 |
|
||
| Reconciliation of Non-GAAP Measures | |||||||||||||
| Three Months Ended | |||||||||||||
| (in thousands, unaudited) | |||||||||||||
| Reconciliation from Net Income (Loss) to Adjusted EBITDA: | |||||||||||||
| Net income (loss) | $ |
(5,165 |
) |
$ |
(42,031 |
) |
$ |
2,709 |
|
||||
| Adjustments: | |||||||||||||
| Income tax provision (benefit) |
|
(2,018 |
) |
|
2,140 |
|
|
2,529 |
|
||||
| Net interest expense |
|
4,187 |
|
|
5,174 |
|
|
4,333 |
|
||||
| Other (income) expense, net |
|
(3,444 |
) |
|
3,881 |
|
|
(14,293 |
) |
||||
| Depreciation and amortization |
|
37,537 |
|
|
33,488 |
|
|
40,096 |
|
||||
| EBITDA |
|
31,097 |
|
|
2,652 |
|
|
35,374 |
|
||||
| Adjustments: | |||||||||||||
| Gain on disposition of assets, net |
|
(367 |
) |
|
- |
|
|
- |
|
||||
| Acquisition and integration costs |
|
231 |
|
|
- |
|
|
315 |
|
||||
| Change in fair value of contingent consideration |
|
3,992 |
|
|
- |
|
|
13,390 |
|
||||
| General provision (release) for current expected credit losses |
|
141 |
|
|
(126 |
) |
|
90 |
|
||||
| Adjusted EBITDA | $ |
35,094 |
|
$ |
2,526 |
|
$ |
49,169 |
|
||||
| Free Cash Flow: | |||||||||||||
| Cash flows from operating activities | $ |
(5,392 |
) |
$ |
(17,413 |
) |
$ |
49,712 |
|
||||
| Less: Capital expenditures, net of proceeds from sale of assets |
|
(6,300 |
) |
|
(623 |
) |
|
(28,514 |
) |
||||
| Free Cash Flow | $ |
(11,692 |
) |
$ |
(18,036 |
) |
$ |
21,198 |
|
||||
| Net Debt: | |||||||||||||
| Long-term debt including current maturities | $ |
260,460 |
|
$ |
301,613 |
|
$ |
264,075 |
|
||||
| Less: Cash and cash equivalents and restricted cash |
|
(169,182 |
) |
|
(302,678 |
) |
|
(189,111 |
) |
||||
| Net Debt | $ |
91,278 |
|
$ |
(1,065 |
) |
$ |
74,964 |
|
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20230424005909/en/
Executive Vice President and CFO
Ph: 281-618-0465
email: estaffeldt@helixesg.com
Source:
FAQ
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