Tidewater Reports Results for the Three and Nine Months Ended September 30, 2022

Rhea-AI Summary

Tidewater Inc. (NYSE:TDW) reported a significant milestone, achieving a positive net income of $5.4 million in Q3 2022, the first since 2017. Revenue surged to $191.8 million, up 17% year-over-year, with a vessel-level cash margin of 40.6%. Adjusted EBITDA reached $52.1 million, an increase from $39.1 million in the previous year. Free cash flow improved to $21.9 million, compared to a negative cash flow in Q3 2021. The active fleet utilization rose to 83.7%, while the average day rate increased significantly. The company anticipates realizing $45 million in synergies from its recent acquisition during 2023.

Positive

• First quarterly net income since 2017 of $5.4 million.
• Revenue increased 17% year-over-year to $191.8 million.
• Free cash flow improved to $21.9 million from negative $14.9 million.
• Adjusted EBITDA rose to $52.1 million, up from $39.1 million.
• Active fleet utilization increased to 83.7%.

Negative

• Merger and severance expenses totaled $4.3 million.
• Long-lived asset impairment costs were $1.2 million.
• Net losses of $32.4 million for the nine months ended September 30, 2022.

• Reported positive net income for the first quarterly period since 2017
• Revenue of $191.8 million increased 17% compared to the second quarter of 2022
• Vessel level cash margin of 40.6% compared to 38.2% in the second quarter of 2022
• Adjusted EBITDA of $52.1 million compared to $39.1 million in the second quarter of 2022
• Free cash flow of $21.9 million compared to negative $14.9 million in the second quarter of 2022
• Total fleet utilization of 77.8% compared to 75.5% in the second quarter of 2022
• Active fleet utilization of 83.7% compared to 82.5% in the second quarter of 2022
• Average active vessels of 181 compared to 172 in the second quarter of 2022

HOUSTON--(BUSINESS WIRE)-- Tidewater Inc. (NYSE:TDW) announced today revenue for the three and nine months ended September 30, 2022 of $191.8 million and $460.9 million, respectively, compared with $92.4 million and $265.9 million, respectively, for the three and nine months ended September 30, 2021. Tidewater's net income (losses) for the three and nine months ended September 30, 2022, were $5.4 million ($0.10 per common share) and $(32.4) million ($0.76 per common share), respectively, compared with $(26.3) million ($0.64 per common share) and $(91.0) million ($2.22 per common share), respectively, for the three and nine months ended September 30, 2021. Included in the net income for the three months ended September 30, 2022 were merger and severance expenses of $4.3 million and long-lived asset impairment and other of $1.2 million. Included in the net losses for the nine months ended September 30, 2022 were long-lived asset impairment and other of $0.7 million; gain on bargain purchase of $1.3 million; loss on warrants of $14.2 million and merger and severance expenses of $14.0 million. Excluding these items, we would have reported a net income for the three months ended September 30, 2022 of $10.9 million ($0.21 per common share) and net loss for the nine months ended September 30, 2022 of $4.8 million ($0.11 per common share). Included in the net losses for the three and nine months ended September 30, 2021 were long-lived asset impairments, affiliate credit loss credit, and severance expenses of $2.3 and $2.1 million, respectively. Excluding these items, we would have reported a net loss for the three and nine months ended September 30, 2021 of $24.0 million ($0.58 per common share) and $88.9 million ($2.17 per common share), respectively.

Quintin Kneen, Tidewater’s President and Chief Executive Officer, commented, “Our third quarter performance reinforces our previous commentary that the offshore vessel industry had reached an inflection point. Revenue improved by 17% sequentially, partly driven by a full quarter of the Swire Pacific Offshore (SPO) acquisition. Active utilization increased from 82.5% in the second quarter of 2022 to 83.7% and our average day rate, despite a material strengthening of the U.S. dollar, improved by nearly $1,100 per day sequentially, or approximately 8.5%. The combined improvement in utilization and average day rate provided an approximately 11.5% improvement in revenue per average active vessel. Vessel level cash margin improved to nearly 41%, up 240 basis points. It is also worth mentioning that we generated net income during the third quarter, the first quarterly net income since emergence from bankruptcy in 2017, which represents a satisfying milestone in the continued recovery of our business.

“Along with the increase in revenue throughout the first half of this year we also saw an increase in working capital, which is expected during such a period. We are pleased to report that the investment in working capital moderated in the third quarter. In fact, although revenue increased 17% sequentially, our trade accounts receivable balance decreased from the second quarter. The improvement in working capital management combined with our improved profitability provided free cash flow of $21.9 million during the third quarter, representing a sequential improvement in free cash flow of $36.8 million.

“We continue to see day rate momentum across all of our regions, led by Asia Pacific, Europe and Mediterranean and West Africa. Asia Pacific and Europe and Mediterranean regions both benefitted from a strong anchor handling market as favorable conditions and robust drilling activity pushed day rates up to some of the highest levels ever realized in the North Sea. Moving forward, we do expect that the typical industry seasonality will moderate the day rates for the larger anchor handlers over the next two quarters, but the drilling activity driving the demand we saw for these vessels over the past summer will recur in 2023.

“As it pertains to synergies associated with the SPO transaction, we continue to work through our integration plan and have continued to hit internal milestones on our way to realizing our synergy targets. We remain confident that we will realize the $45.0 million of synergies contemplated in the transaction. We expect to realize the full run-rate of general and administrative synergies during the first quarter of 2023 and the full benefit of our operating expense synergy during the latter part of 2023.

“As we look forward to the remainder of 2022 and 2023, we remain confident that the fundamentals for the offshore vessel market will remain robust. The safety of our people and of our operations remains a critical focus for us as this robust activity unfolds, and we remain steadfast in our dedication to being the safest and most reliable offshore support vessel operator in the world.”

In addition to the number of outstanding shares, as of September 30, 2022, the company also has the following in-the-money warrants.

Common shares outstanding			46,494,323
New Creditor Warrants (strike price $0.001 per common share)			119,215
GulfMark Creditor Warrants (strike price $0.01 per common share)			185,126
SPO acquisition warrants (strike price $0.001 per common share)			4,003,299
Total			50,801,963

Tidewater will hold a conference call to discuss results for the three and nine months ending September 30, 2022 on November 4, 2022, at 8:00 a.m. Central Time. Investors and interested parties may listen to the earnings conference call via telephone by calling +1.888.770.7135 if calling from the U.S. or Canada (+1.929.203.0820 if calling from outside the U.S.) and provide Conference ID: 2444624 prior to the scheduled start time. A live webcast of the call will also be available in the Investor Relations section of Tidewater’s website at investor.tdw.com.

A replay of the conference call will be available beginning at 11:00 a.m. Central Time on November 4, 2022 and will continue until 11:59 p.m. Central Time on December 4, 2022. To access the replay, visit the Investor Relations section of Tidewater’s website at investor.tdw.com.

The conference call will contain forward-looking statements in addition to statements of historical fact. The actual achievement of any forecasted results or the unfolding of future economic or business developments in a way anticipated or projected by the company involves numerous risks and uncertainties that may cause the company’s actual performance to be materially different from that stated or implied in the forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the oilfield service industry and other factors discussed within the “Risk Factors” section of Tidewater’s most recent Forms 10-Q and 10-K.

Tidewater owns and operates the largest fleet of offshore support vessels in the industry, with 65 years of experience supporting offshore energy exploration, production and offshore wind activities worldwide. To learn more, visit www.tdw.com.

Financial information is displayed beginning on the next page.

The financial statements and supplementary information presented in this press release were not audited. This press release presents extracts from the Consolidated Balance Sheets at September 30, 2022 and December 31, 2021; the Consolidated Statements of Operations and Consolidated Statements of Equity for the three and nine months ended September 30, 2022 and 2021; and the Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021. Extracts are drawn from the September 30, 2022 unaudited quarterly and year to date financial statements and the December 31, 2021 audited annual financial statements of Tidewater Inc. All per-share amounts are stated on a diluted basis.

In conjunction with the acquisition of Swire Pacific Offshore (SPO), we realigned our reportable segments to better reflect the post-acquisition operating environment. The previous Middle East/Asia Pacific segment has been split into the Middle East segment and the Asia Pacific segment. Our previous operations in Southeast Asia and Australia, along with the legacy SPO operations in the Asia Pacific region, now form the new Asia Pacific segment. Our segment disclosures reflect the current segment alignment for all periods presented.

TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, except per share data)
		Three Months Ended								Nine Months Ended
		September 30, 2022				September 30, 2021				September 30, 2022				September 30, 2021
Revenues:
Vessel revenues		$	190,247			$	91,634			$	456,298			$	261,141
Other operating revenues			1,515				767				4,640				4,717
Total revenues			191,762				92,401				460,938				265,858
Costs and expenses:
Vessel operating costs			113,037				65,344				281,805				190,627
Costs of other operating revenues			592				355				1,436				2,003
General and administrative			27,267				18,045				73,288				50,875
Depreciation and amortization			30,856				27,980				89,279				86,256
Long-lived asset impairment and other			1,214				2,167				714				2,167
Affiliate credit loss impairment credit			—				—				—				(1,000	)
(Gain) loss on asset dispositions, net			(264	)			74				826				2,954
Total costs and expenses			172,702				113,965				447,348				333,882
Operating income (loss)			19,060				(21,564	)			13,590				(68,024	)
Other income (expense):
Foreign exchange loss			(3,997	)			(523	)			(4,932	)			(951	)
Equity in net earnings (losses) of unconsolidated companies			9				100				(235	)			(1,697	)
Interest income and other, net			581				148				4,416				179
Loss on warrants			—				—				(14,175	)			—
Interest and other debt costs, net			(4,391	)			(3,681	)			(12,850	)			(12,166	)
Total other expense			(7,798	)			(3,956	)			(27,776	)			(14,635	)
Income (loss) before income taxes			11,262				(25,520	)			(14,186	)			(82,659	)
Income tax expense			6,352				887				18,189				8,922
Net income (loss)			4,910				(26,407	)			(32,375	)			(91,581	)
Less: Net loss attributable to noncontrolling interests			(470	)			(149	)			(6	)			(546	)
Net income (loss) attributable to Tidewater Inc.		$	5,380			$	(26,258	)		$	(32,369	)		$	(91,035	)
Basic income (loss) per common share		$	0.12			$	(0.64	)		$	(0.76	)		$	(2.22	)
Diluted income (loss) per common share		$	0.10			$	(0.64	)		$	(0.76	)		$	(2.22	)
Weighted average common shares outstanding			44,451				41,132				42,570				40,918
Dilutive effect of warrants, restricted stock units and stock options			7,069				—				—				—
Adjusted weighted average common shares			51,520				41,132				42,570				40,918

TIDEWATER INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands, except share and par value data)
		September 30, 2022				December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents		$	115,014			$	149,037
Restricted cash			4,965				1,240
Trade and other receivables, less allowance for credit losses of $2,568 and $1,948 at September 30, 2022 and December 31, 2021, respectively			181,646				86,503
Due from affiliates, less allowance for credit losses of $11,642 and $72,456 at September 30, 2022 and December 31, 2021, respectively			—				70,134
Marine operating supplies			20,764				12,606
Assets held for sale			6,815				14,421
Prepaid expenses and other current assets			17,509				8,731
Total current assets			346,713				342,672
Net properties and equipment			815,990				688,040
Deferred drydocking and survey costs			57,877				40,734
Indemnification assets			30,117				—
Other assets			32,364				24,334
Total assets		$	1,283,061			$	1,095,780
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	31,829			$	20,788
Accrued costs and expenses			105,945				51,734
Due to affiliates			—				61,555
Other current liabilities			46,629				23,865
Total current liabilities			184,403				157,942
Long-term debt			168,649				167,885
Other liabilities and deferred credits			82,910				68,184
Commitments and contingencies
Equity:
Common stock			46				41
Additional paid-in-capital			1,555,388				1,376,494
Accumulated deficit			(710,269	)			(677,900	)
Accumulated other comprehensive loss			1,474				2,668
Total stockholders' equity			846,639				701,303
Noncontrolling interests			460				466
Total equity			847,099				701,769
Total liabilities and equity		$	1,283,061			$	1,095,780

TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (In Thousands)
		Three Months Ended								Nine Months Ended
		September 30, 2022				September 30, 2021				September 30, 2022				September 30, 2021
Net income (loss)		$	4,910			$	(26,407	)		$	(32,375	)		$	(91,581	)
Other comprehensive income (loss):
Unrealized loss on note receivable			(429	)			—				(1,275	)			—
Change in liability of pension plans			140				(207	)			81				(485	)
Total comprehensive income (loss)		$	4,621			$	(26,614	)		$	(33,569	)		$	(92,066	)

TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands)
		Nine Months				Nine Months
		Ended				Ended
		September 30, 2022				September 30, 2021
Operating activities:
Net loss		$	(32,375	)		$	(91,581	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization			62,539				54,605
Amortization of deferred drydocking and survey costs			26,740				31,651
Amortization of debt premiums and discounts			1,157				2,662
Provision for deferred income taxes			134				167
Loss on asset dispositions, net			826				2,954
Gain on bargain purchase			(1,300	)			—
Loss on debt extinguishment			—				59
Affiliate credit loss impairment credit			—				(1,000	)
Long-lived asset impairment and other			714				2,167
Loss on warrants			14,175				—
Stock-based compensation expense			5,344				4,199
Changes in assets and liabilities, net of effects of business acquisition:
Trade and other receivables			(30,301	)			26,608
Changes in due to/from affiliate, net			(20	)			1,210
Accounts payable			9,364				1,061
Accrued expenses			(913	)			(473	)
Deferred drydocking and survey costs			(43,883	)			(17,388	)
Other, net			(17,315	)			(8,833	)
Net cash provided by (used in) operating activities			(5,114	)			8,068
Cash flows from investing activities:
Proceeds from sales of assets			8,475				33,956
Acquisitions, net of cash acquired			(20,740	)			—
Additions to properties and equipment			(11,708	)			(2,583	)
Net cash provided by (used in) investing activities			(23,973	)			31,373
Cash flows from financing activities:
Proceeds from stock offering			70,630				—
Repurchase of SPO acquisition warrants			(70,630	)			—
Principal payments on long-term debt			—				(39,259	)
Debt issuance and modification costs			(393	)			(855	)
Debt extinguishment premium			—				(59	)
Tax on share-based awards			(2,276	)			(793	)
Net cash used in financing activities			(2,669	)			(40,966	)
Net change in cash, cash equivalents and restricted cash			(31,756	)			(1,525	)
Cash, cash equivalents and restricted cash at beginning of period			154,276				155,225
Cash, cash equivalents and restricted cash at end of period		$	122,520			$	153,700

Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest, net of amounts capitalized		$	7,979			$	10,083
Income taxes		$	16,143			$	14,735
Supplemental disclosure of noncash investing activities:
Acquisition of SPO		$	162,648			$	—
Supplemental disclosure of noncash financing activities:
Warrants issued for SPO acquisition		$	162,648			$	—
Repurchase of SPO acquisition warrants		$	992			$	—

Note:  Cash, cash equivalents and restricted cash at September 30, 2022 includes $2.5 million in long-term restricted cash, which is included in other assets in our consolidated balance sheet.

TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (In Thousands)
		Three Months Ended
														Accumulated
						Additional								other				Non
		Common				paid-in				Accumulated				comprehensive				controlling
		stock				capital				deficit				income (loss)				interest				Total
Balance at June 30, 2022		$	42			$	1,554,561			$	(715,649	)		$	1,763			$	930			$	841,647
Total comprehensive income (loss)			—				—				5,380				(289	)			(470	)			4,621
Issuance of common stock			4				72,253				—				—				—				72,257
Repurchase of SPO acquisition warrants			—				(73,249	)			—				—				—				(73,249	)
Amortization of share-based awards			—				1,823				—				—				—				1,823
Balance at September 30, 2022		$	46			$	1,555,388			$	(710,269	)		$	1,474			$	460			$	847,099
Balance at June 30, 2021		$	41			$	1,373,727			$	(613,708	)		$	(1,082	)		$	760			$	759,738
Total comprehensive loss			—				—				(26,258	)			(207	)			(149	)			(26,614	)
Amortization of share-based awards			—				1,488				—				—				—				1,488
Balance at September 30, 2021		$	41			$	1,375,215			$	(639,966	)		$	(1,289	)		$	611			$	734,612

		Nine Months Ended
														Accumulated
						Additional								other				Non
		Common				paid-in				Accumulated				comprehensive				controlling
		stock				capital				deficit				income (loss)				interest				Total
Balance at December 31, 2021		$	41			$	1,376,494			$	(677,900	)		$	2,668			$	466			$	701,769
Total comprehensive income (loss)			—				—				(32,369	)			(1,194	)			(6	)			(33,569	)
Issuance of common stock			5				72,252				—				—				—				72,257
SPO acquisition warrants			—				176,823				—				—				—				176,823
Repurchase of SPO acquisition warrants			—				(73,249	)			—				—				—				(73,249	)
Amortization of share-based awards			—				3,068				—				—				—				3,068
Balance at September 30, 2022		$	46			$	1,555,388			$	(710,269	)		$	1,474			$	460			$	847,099
Balance at December 31, 2020		$	41			$	1,371,809			$	(548,931	)		$	(804	)		$	1,157			$	823,272
Total comprehensive loss			—				—				(91,035	)			(485	)			(546	)			(92,066	)
Amortization of share-based awards			—				3,406				—				—				—				3,406
Balance at September 30, 2021		$	41			$	1,375,215			$	(639,966	)		$	(1,289	)		$	611			$	734,612

The company’s vessel revenues and vessel operating costs and the related percentage of total vessel revenues, were as follows:

(In Thousands)		Three Months Ended																Nine Months Ended
		September 30, 2022								September 30, 2021								September 30, 2022								September 30, 2021
Vessel revenues:
Americas		$	39,122				21	%		$	24,564				27	%		$	105,086				23	%		$	74,269				29	%
Asia Pacific			23,902				12	%			4,786				5	%			45,161				10	%			13,228				5	%
Middle East			31,186				16	%			20,847				23	%			79,800				17	%			62,447				24	%
Europe/Mediterranean			39,702				21	%			21,197				23	%			96,096				21	%			58,413				22	%
West Africa			56,335				30	%			20,240				22	%			130,155				29	%			52,784				20	%
Total vessel revenues		$	190,247				100	%		$	91,634				100	%		$	456,298				100	%		$	261,141				100	%
Vessel operating costs:
Crew costs		$	71,189				37	%		$	35,609				39	%		$	172,665				38	%		$	108,456				42	%
Repair and maintenance			13,544				7	%			10,497				11	%			36,482				8	%			29,468				11	%
Insurance			1,988				1	%			812				1	%			4,738				1	%			1,298				1	%
Fuel, lube and supplies			12,291				7	%			6,751				7	%			30,888				7	%			19,152				7	%
Other			14,025				7	%			11,675				13	%			37,032				8	%			32,253				12	%
Total vessel operating costs			113,037				59	%			65,344				71	%			281,805				62	%			190,627				73	%
Vessel operating margin (A)		$	77,210				41	%		$	26,290				29	%		$	174,493				38	%		$	70,514				27	%

Note (A):  Vessel operating margin equals vessel revenues less vessel operating costs.

The company’s operating loss and other components of loss before income taxes and its related percentage of total revenues, were as follows:

(In Thousands)		Three Months Ended																Nine Months Ended
		September 30, 2022								September 30, 2021								September 30, 2022								September 30, 2021
Vessel operating profit (loss):
Americas		$	2,952				2	%		$	(1,770	)			(2	)%		$	8,800				2	%		$	(8,361	)			(3	)%
Asia Pacific			3,260				2	%			1,357				1	%			4,534				1	%			3,023				1	%
Middle East			605				0	%			(2,070	)			(2	)%			(1,585	)			(0	)%			(5,323	)			(2	)%
Europe/Mediterranean			13,137				7	%			(2,866	)			(3	)%			14,970				3	%			(12,873	)			(5	)%
West Africa			12,322				6	%			(3,724	)			(4	)%			24,807				5	%			(15,846	)			(6	)%
Other operating profit			922				0	%			412				0	%			3,204				1	%			2,714				1	%
			33,198				17	%			(8,661	)			(9	)%			54,730				12	%			(36,666	)			(14	)%
Corporate expenses (A)			(13,188	)			(7	)%			(10,662	)			(12	)%			(39,600	)			(9	)%			(27,237	)			(10	)%
Gain (loss) on asset dispositions, net			264				0	%			(74	)			(0	)%			(826	)			(0	)%			(2,954	)			(1	)%
Affiliate credit loss impairment credit			—				0	%			—				0	%			—				0	%			1,000				0	%
Long-lived asset impairments and other			(1,214	)			0	%			(2,167	)			(2	)%			(714	)			(0	)%			(2,167	)			(1	)%
Operating income (loss)		$	19,060				10	%		$	(21,564	)			(23	)%		$	13,590				3	%		$	(68,024	)			(26	)%

Note (A):  General and administrative expenses for the three months and nine months ended September 30, 2022 include stock-based compensation of $1.9 million and $5.3 million, respectively. General and administrative expenses for the three and nine months ended September 30, 2021 include stock-based compensation of $1.5 million and $4.2 million, respectively. In addition, vessel operating and general and administrative costs for the three months and nine months ended September 30, 2022, include $4.3 million and $14.0 million in one-time acquisition, restructuring and integration related costs, respectively. Vessel operating and general and administrative costs for the three and nine months ended September 30, 2021, include $0.1 million and $1.0 million in one-time restructuring and integration related costs, respectively.

TIDEWATER INC. CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) – QUARTERLY DATA (In Thousands, except per share data)
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2022				2022				2022				2021				2021
Revenues:
Vessel revenues		$	190,247			$	162,175			$	103,876			$	100,428			$	91,634
Other operating revenues			1,515				1,272				1,853				4,747				767
Total revenues			191,762				163,447				105,729				105,175				92,401
Costs and expenses:
Vessel operating costs (A)			113,037				100,257				68,511				71,187				65,344
Costs of other operating revenue			592				483				361				228				355
General and administrative (A)			27,267				27,804				18,217				17,641				18,045
Depreciation and amortization			30,856				31,766				26,657				28,288				27,980
Long-lived asset impairment (credit)			1,214				—				(500	)			13,476				2,167
Affiliate credit loss impairment expense			—				—				—				1,400				—
(Gain) loss on asset dispositions, net			(264	)			1,297				(207	)			(53	)			74
Total operating costs and expenses			172,702				161,607				113,039				132,167				113,965
Operating income (loss)			19,060				1,840				(7,310	)			(26,992	)			(21,564	)
Other income (expense):
Foreign exchange gain (loss)			(3,997	)			(1,881	)			946				582				(523	)
Equity in net earnings (losses) of unconsolidated companies			9				(244	)			—				(1,625	)			100
Interest income and other, net			581				349				3,486				1,426				148
Loss on early extinguishment of debt			—				—				—				(11,100	)			—
Loss on warrants			—				(14,175	)			—				—				—
Interest and other debt costs, net			(4,391	)			(4,284	)			(4,175	)			(3,417	)			(3,681	)
Total other expense			(7,798	)			(20,235	)			257				(14,134	)			(3,956	)
Income (loss) before income taxes			11,262				(18,395	)			(7,053	)			(41,126	)			(25,520	)
Income tax (benefit) expense			6,352				6,619				5,218				(3,047	)			887
Net income (loss)			4,910				(25,014	)			(12,271	)			(38,079	)			(26,407	)
Net income (loss) attributable to noncontrolling interests			(470	)			567				(103	)			(145	)			(149	)
Net income (loss) attributable to Tidewater Inc.		$	5,380			$	(25,581	)		$	(12,168	)		$	(37,934	)		$	(26,258	)
Basic income (loss) per common share		$	0.12			$	(0.61	)		$	(0.29	)		$	(0.92	)		$	(0.64	)
Diluted income (loss) per common share		$	0.10			$	(0.61	)		$	(0.29	)		$	(0.92	)		$	(0.64	)
Weighted average common shares outstanding			44,451				41,814				41,412				41,280				41,132
Dilutive effect of warrants, restricted stock units and stock options			7,069				—				—				—				—
Adjusted weighted average common shares			51,520				41,814				41,412				41,280				41,132
Vessel operating margin		$	77,210			$	61,918			$	35,365			$	29,241			$	26,290
Note (A) One-time acquisition, restructuring and integration related costs		$	4,332			$	7,314			$	2,305			$	221			$	112

TIDEWATER INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands)
		September 30,				June 30,				March 31,				December 31,				September 30,
		2022				2022				2022				2021				2021
ASSETS
Current assets:
Cash and cash equivalents		$	115,014			$	87,981			$	136,234			$	149,037			$	127,414
Restricted cash			4,965				1,240				4,958				1,240				24,092
Trade and other receivables, net			181,646				189,259				112,953				86,503				86,015
Due from affiliates, net			—				—				21,191				70,134				68,217
Marine operating supplies			20,764				21,182				13,252				12,606				13,335
Assets held for sale			6,815				6,862				8,591				14,421				17,891
Prepaid expenses and other current assets			17,509				23,259				12,012				8,731				13,129
Total current assets			346,713				329,783				309,191				342,672				350,093
Net properties and equipment			815,990				838,612				677,580				688,040				709,324
Deferred drydocking and survey costs			57,877				53,661				44,362				40,734				40,510
Indemnification assets			30,117				30,269				—				—				—
Other assets			32,364				30,410				22,997				24,334				23,146
Total assets		$	1,283,061			$	1,282,735			$	1,054,130			$	1,095,780			$	1,123,073
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	31,829			$	30,537			$	23,696			$	20,788			$	18,042
Accrued costs and expenses			105,945				109,212				55,141				51,734				52,133
Due to affiliates			—				—				21,191				61,555				59,571
Current portion of long-term debt			—				—				—				—				140,995
Other current liabilities			46,629				47,872				25,471				23,865				29,139
Total current liabilities			184,403				187,621				125,499				157,942				299,880
Long-term debt			168,649				168,279				167,997				167,885				14,139
Other liabilities and deferred credits			82,910				85,188				70,892				68,184				74,442
Equity:
Common stock			46				42				42				41				41
Additional paid-in-capital			1,555,388				1,554,561				1,376,934				1,376,494				1,375,215
Accumulated deficit			(710,269	)			(715,649	)			(690,068	)			(677,900	)			(639,966	)
Accumulated other comprehensive income (loss)			1,474				1,763				2,471				2,668				(1,289	)
Total stockholders' equity			846,639				840,717				689,379				701,303				734,001
Noncontrolling interests			460				930				363				466				611
Total equity			847,099				841,647				689,742				701,769				734,612
Total liabilities and equity		$	1,283,061			$	1,282,735			$	1,054,130			$	1,095,780			$	1,123,073
Supplemental information
Due from related parties, net of due to related parties:
Sonatide (Angola)		$	—			$	—			$	—			$	8,579			$	8,646

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2022				2022				2022				2021				2021
VESSEL REVENUE BY VESSEL CLASS
Americas fleet:
PSV > 900		$	15,676			$	15,204			$	9,462			$	10,491			$	8,447
PSV < 900			16,460				15,470				14,628				14,261				11,217
AHTS > 16K			3,429				2,390				971				409				1,633
AHTS 8 - 16K			1,601				1,130				774				683				890
AHTS 4 - 8K			1,185				1,438				1,472				875				1,214
Other			771				1,888				1,137				1,163				1,163
Total			39,122				37,520				28,444				27,882				24,564
Asia Pacific fleet:
PSV > 900			10,896				7,258				3,923				3,951				3,899
PSV < 900			3,891				3,006				—				—				—
AHTS > 16K			3,128				1,504				—				—				—
AHTS 8 - 16K			4,333				2,940				—				—				—
AHTS 4 - 8K			1,605				1,433				974				963				887
Other			49				221				—				—				—
Total			23,902				16,362				4,897				4,914				4,786
Middle East fleet:
PSV > 900			2,771				2,814				1,183				1,203				1,130
PSV < 900			16,063				13,798				9,559				10,279				10,384
AHTS > 16K			2,350				1,750				—				—				—
AHTS 8 - 16K			3,397				3,808				4,137				4,076				3,592
AHTS 4 - 8K			6,605				6,226				5,339				6,390				5,741
Total			31,186				28,396				20,218				21,948				20,847
Europe/Mediterranean fleet:
PSV > 900			27,167				23,684				18,390				17,993				15,961
PSV < 900			7,092				6,868				5,375				4,351				5,076
AHTS > 16K			5,251				1,776				—				—				—
Other			192				147				154				157				160
Total			39,702				32,475				23,919				22,501				21,197
West Africa fleet:
PSV > 900			8,041				6,487				3,987				4,011				2,940
PSV < 900			18,249				13,801				8,499				8,076				6,815
AHTS > 16K			6,152				4,315				—				—				—
AHTS 8 - 16K			11,236				10,724				5,049				4,388				3,390
AHTS 4 - 8K			6,445				4,576				1,547				782				782
Other			6,212				7,519				7,316				5,926				6,313
Total			56,335				47,422				26,398				23,183				20,240
Worldwide fleet:
PSV > 900			64,551				55,447				36,945				37,649				32,377
PSV < 900			61,755				52,943				38,061				36,967				33,492
AHTS > 16K			20,310				11,735				971				409				1,633
AHTS 8 - 16K			20,567				18,602				9,960				9,147				7,872
AHTS 4 - 8K			15,840				13,673				9,332				9,010				8,624
Other			7,224				9,775				8,607				7,246				7,636
Total		$	190,247			$	162,175			$	103,876			$	100,428			$	91,634

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2022				2022				2022				2021				2021
AVERAGE NUMBER OF VESSELS:
Americas fleet:
PSV > 900			11				10				10				11				11
PSV < 900			17				17				17				17				17
AHTS > 16K			2				2				1				1				1
AHTS 8 - 16K			1				1				1				1				1
AHTS 4 - 8K			2				3				3				3				3
Other			1				1				2				2				3
Total			34				34				34				35				36
Stacked vessels			(3	)			(5	)			(7	)			(9	)			(11	)
Active vessels			31				29				27				26				25
Asia Pacific fleet:
PSV > 900			5				6				3				3				3
PSV < 900			2				2				—				—				—
AHTS > 16K			2				1				—				—				—
AHTS 8 - 16K			3				2				—				—				—
AHTS 4 - 8K			4				3				2				2				2
Other			1				5				—				—				—
Total			17				19				5				5				5
Stacked vessels			(2	)			(1	)			—				—				—
Active vessels			15				18				5				5				5
Middle East fleet:
PSV > 900			2				2				1				1				1
PSV < 900			20				19				14				14				14
AHTS > 16K			2				1				—				—				—
AHTS 8 - 16K			5				6				5				5				5
AHTS 4 - 8K			13				13				13				13				13
Total			42				41				33				33				33
Stacked vessels			—				—				—				(1	)			(1	)
Active vessels			42				41				33				32				32
Europe/Mediterranean fleet:
PSV > 900			19				19				19				18				18
PSV < 900			6				7				9				10				10
AHTS > 16K			1				1				—				—				—
Total			26				27				28				28				28
Stacked vessels			—				(2	)			(4	)			(5	)			(7	)
Active vessels			26				25				24				23				21
West Africa fleet:
PSV > 900			6				4				3				3				3
PSV < 900			18				15				12				13				14
AHTS > 16K			4				3				—				—				—
AHTS 8 - 16K			12				10				5				6				6
AHTS 4 - 8K			8				6				3				3				4
Other			28				29				29				27				28
Total			76				67				52				52				55
Stacked vessels			(9	)			(8	)			(10	)			(13	)			(19	)
Active vessels			67				59				42				39				36
Worldwide fleet:
PSV > 900			43				41				36				36				36
PSV < 900			63				60				52				54				55
AHTS > 16K			11				8				1				1				1
AHTS 8 - 16K			21				19				11				12				12
AHTS 4 - 8K			27				25				21				21				22
Other			30				35				31				29				31
Total			195				188				152				153				157
Stacked vessels			(14	)			(16	)			(21	)			(28	)			(38	)
Active vessels			181				172				131				125				119
Total active			181				172				131				125				119
Total stacked			14				16				21				28				38
Total joint venture			1				1				1				3				3
Total			196				189				153				156				160

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2022				2022				2022				2021				2021
AVAILABLE DAYS - TOTAL FLEET:
Americas fleet:
PSV > 900			1,012				943				900				981				1,012
PSV < 900			1,564				1,547				1,530				1,564				1,564
AHTS > 16K			184				152				90				92				92
AHTS 8 - 16K			122				91				90				92				92
AHTS 4 - 8K			184				246				270				276				276
Other			92				121				145				184				244
Total			3,158				3,100				3,025				3,189				3,280
Asia Pacific fleet:
PSV > 900			460				507				270				276				276
PSV < 900			184				183				—				—				—
AHTS > 16K			184				122				—				—				—
AHTS 8 - 16K			276				183				—				—				—
AHTS 4 - 8K			368				304				180				184				184
Other			92				453				—				—				—
Total			1,564				1,752				450				460				460
Middle East fleet:
PSV > 900			123				152				90				92				92
PSV < 900			1,840				1,700				1,269				1,288				1,288
AHTS > 16K			184				122				—				—				—
AHTS 8 - 16K			465				546				458				460				460
AHTS 4 - 8K			1,217				1,183				1,170				1,196				1,196
Total			3,829				3,703				2,987				3,036				3,036
Europe/Mediterranean fleet:
PSV > 900			1,748				1,729				1,710				1,687				1,692
PSV < 900			552				696				826				920				920
AHTS > 16K			92				61				—				—				—
Total			2,392				2,486				2,536				2,607				2,612
West Africa fleet:
PSV > 900			613				406				270				276				276
PSV < 900			1,656				1,367				1,103				1,196				1,258
AHTS > 16K			368				244				—				—				—
AHTS 8 - 16K			1,074				882				470				552				552
AHTS 4 - 8K			736				548				255				276				367
Other			2,582				2,639				2,610				2,484				2,604
Total			7,029				6,086				4,708				4,784				5,057
Worldwide fleet:
PSV > 900			3,956				3,737				3,240				3,312				3,348
PSV < 900			5,796				5,493				4,728				4,968				5,030
AHTS > 16K			1,012				701				90				92				92
AHTS 8 - 16K			1,937				1,702				1,018				1,104				1,104
AHTS 4 - 8K			2,505				2,281				1,875				1,932				2,023
Other			2,766				3,213				2,755				2,668				2,848
Total			17,972				17,127				13,706				14,076				14,445

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2022				2022				2022				2021				2021
OUT-OF-SERVICE - STACKED DAYS:
Americas fleet:
PSV > 900			—				155				180				271				354
PSV < 900			276				273				270				350				460
AHTS 4 - 8K			—				64				90				92				92
Other			—				—				55				92				152
Total			276				492				595				805				1,058
Asia Pacific fleet:
AHTS 4 - 8K			61				—				—				—				—
Other			92				61				—				—				—
Total			153				61				—				—				—
Middle East fleet:
PSV < 900			—				—				25				92				92
Total			—				—				25				92				92
Europe/Mediterranean fleet:
PSV > 900			—				—				90				106				273
PSV < 900			—				150				286				368				368
Total			—				150				376				474				641
West Africa fleet:
PSV > 900			—				—				—				—				14
PSV < 900			—				18				203				307				492
AHTS 8 - 16K			—				—				20				92				123
AHTS 4 - 8K			92				56				75				106				275
Other			747				678				630				690				839
Total			839				752				928				1,195				1,743
Worldwide fleet:
PSV > 900			—				155				270				377				641
PSV < 900			276				441				784				1,117				1,412
AHTS 8 - 16K			—				—				20				92				123
AHTS 4 - 8K			153				120				165				198				367
Other			839				739				685				782				991
Total			1,268				1,455				1,924				2,566				3,534

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2022				2022				2022				2021				2021
AVAILABLE DAYS - ACTIVE FLEET:
Americas fleet:
PSV > 900			1,012				788				720				710				658
PSV < 900			1,288				1,274				1,260				1,214				1,104
AHTS > 16K			184				152				90				92				92
AHTS 8 - 16K			122				91				90				92				92
AHTS 4 - 8K			184				182				180				184				184
Other			92				121				90				92				92
Total			2,882				2,608				2,430				2,384				2,222
Asia Pacific fleet:
PSV > 900			460				507				270				276				276
PSV < 900			184				183				—				—				—
AHTS > 16K			184				122				—				—				—
AHTS 8 - 16K			276				183				—				—				—
AHTS 4 - 8K			307				304				180				184				184
Other			—				392				—				—				—
Total			1,411				1,691				450				460				460
Middle East fleet:
PSV > 900			123				152				90				92				92
PSV < 900			1,840				1,700				1,244				1,196				1,196
AHTS > 16K			184				122				—				—				—
AHTS 8 - 16K			465				546				458				460				460
AHTS 4 - 8K			1,217				1,183				1,170				1,196				1,196
Total			3,829				3,703				2,962				2,944				2,944
Europe/Mediterranean fleet:
PSV > 900			1,748				1,729				1,620				1,581				1,419
PSV < 900			552				546				540				552				552
AHTS > 16K			92				61				—				—				—
Total			2,392				2,336				2,160				2,133				1,971
West Africa fleet:
PSV > 900			613				406				270				276				262
PSV < 900			1,656				1,349				900				889				766
AHTS > 16K			368				244				—				—				—
AHTS 8 - 16K			1,074				882				450				460				429
AHTS 4 - 8K			644				492				180				170				92
Other			1,835				1,961				1,980				1,794				1,765
Total			6,190				5,334				3,780				3,589				3,314
Worldwide fleet:
PSV > 900			3,956				3,582				2,970				2,935				2,707
PSV < 900			5,520				5,052				3,944				3,851				3,618
AHTS > 16K			1,012				701				90				92				92
AHTS 8 - 16K			1,937				1,702				998				1,012				981
AHTS 4 - 8K			2,352				2,161				1,710				1,734				1,656
Other			1,927				2,474				2,070				1,886				1,857
Total			16,704				15,672				11,782				11,510				10,911

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA
		Three Months Ended
	September 30,					June 30,				March 31,				December 31,				September 30,
		2022				2022				2022				2021				2021
UTILIZATION - TOTAL FLEET:
Americas fleet:
PSV > 900			74.6	%			74.4	%			54.6	%			54.0	%			46.1	%
PSV < 900			69.3				67.7				63.3				69.2				60.1
AHTS > 16K			92.4				90.2				57.6				26.2				100.0
AHTS 8 - 16K			89.5				100.0				68.9				76.4				66.1
AHTS 4 - 8K			74.4				67.2				63.7				40.0				49.1
Other			66.5				100.0				62.1				50.0				37.7
Total			73.3	%			73.0	%			60.7	%			59.9	%			54.5	%
Asia Pacific fleet:
PSV > 900			94.5	%			65.5	%			100.0	%			100.0	%			100.0	%
PSV < 900			100.0				66.7				—				—				—
AHTS > 16K			89.9				50.0				—				—				—
AHTS 8 - 16K			97.2				91.2				—				—				—
AHTS 4 - 8K			64.5				56.9				97.9				100.0				90.2
Other			—				74.0				—				—				—
Total			82.5	%			67.9	%			99.2	%			100.0	%			96.1	%
Middle East fleet:
PSV > 900			93.6	%			100.0	%			100.0	%			100.0	%			94.4	%
PSV < 900			84.1				76.5				78.0				79.3				80.8
AHTS > 16K			94.7				100.0				—				—				—
AHTS 8 - 16K			68.5				70.9				99.7				96.3				87.4
AHTS 4 - 8K			84.9				87.1				80.4				93.2				83.7
Total			83.3	%			80.8	%			82.9	%			88.0	%			83.4	%
Europe/Mediterranean fleet:
PSV > 900			95.8	%			88.4	%			84.7	%			85.8	%			77.1	%
PSV < 900			96.4				71.5				63.5				47.8				52.0
AHTS > 16K			76.9				53.4				—				—				—
Total			95.2	%			82.8	%			77.8	%			72.4	%			68.3	%
West Africa fleet:
PSV > 900			70.9	%			96.3	%			100.0	%			97.1	%			66.7	%
PSV < 900			86.6				80.6				66.0				57.8				52.6
AHTS > 16K			100.0				98.1				—				—				—
AHTS 8 - 16K			85.7				95.4				95.7				73.3				56.6
AHTS 4 - 8K			82.6				82.6				69.6				33.3				25.1
Other			44.4				52.9				52.2				44.5				42.8
Total			69.9	%			72.7	%			63.5	%			53.5	%			46.7	%
Worldwide fleet:
PSV > 900			86.3	%			83.1	%			79.3	%			78.9	%			69.2	%
PSV < 900			82.5				74.1				67.9				65.1				62.0
AHTS > 16K			93.7				84.4				57.6				26.2				100.0
AHTS 8 - 16K			83.4				87.4				95.1				83.1				70.2
AHTS 4 - 8K			80.5				79.8				78.2				77.7				68.9
Other			43.7				57.7				52.7				44.9				42.3
Total			77.8	%			75.5	%			70.9	%			67.4	%			61.7	%

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA
		Three Months Ended
	September 30,					June 30,				March 31,				December 31,				September 30,
		2022				2022				2022				2021				2021
UTILIZATION - ACTIVE FLEET:
Americas fleet:
PSV > 900			74.6	%			89.1	%			68.2	%			74.6	%			71.0	%
PSV < 900			84.1				82.3				76.8				89.2				85.2
AHTS > 16K			92.4				90.2				57.6				26.2				100.0
AHTS 8 - 16K			89.5				100.0				68.9				76.4				66.1
AHTS 4 - 8K			74.4				90.8				95.5				60.0				73.7
Other			66.5				100.0				100.0				100.0				100.0
Total			80.3	%			86.8	%			75.5	%			80.1	%			80.4	%
Asia Pacific fleet:
PSV > 900			94.5	%			65.5	%			100.0	%			100.0	%			100.0	%
PSV < 900			100.0				66.7				—				—				—
AHTS > 16K			89.9				50.0				—				—				—
AHTS 8 - 16K			97.2				91.2				—				—				—
AHTS 4 - 8K			77.4				56.9				97.9				100.0				90.2
Other			—				85.5				—				—				—
Total			91.4	%			70.4	%			99.2	%			100.0	%			96.1	%
Middle East fleet:
PSV > 900			93.6	%			100.0	%			100.0	%			100.0	%			94.4	%
PSV < 900			84.1				76.5				79.6				85.3				87.0
AHTS > 16K			94.7				100.0				—				—				—
AHTS 8 - 16K			68.5				70.9				99.7				96.3				87.4
AHTS 4 - 8K			84.9				87.1				80.4				93.2				83.7
Total			83.3	%			80.8	%			83.6	%			90.7	%			86.0	%
Europe/Mediterranean fleet:
PSV > 900			95.8	%			88.4	%			89.4	%			91.6	%			91.9	%
PSV < 900			96.4				91.1				97.1				79.7				86.7
AHTS > 16K			76.9				53.4				—				—				—
Total			95.2	%			88.1	%			91.3	%			88.5	%			90.5	%
West Africa fleet:
PSV > 900			70.9	%			96.3	%			100.0	%			97.1	%			70.2	%
PSV < 900			86.6				81.7				80.9				77.8				86.3
AHTS > 16K			100.0				98.1				—				—				—
AHTS 8 - 16K			85.7				95.4				100.0				88.0				72.8
AHTS 4 - 8K			94.5				92.0				98.6				54.1				100.0
Other			62.5				71.2				68.8				61.6				63.1
Total			79.4	%			82.9	%			79.1	%			71.4	%			71.3	%
Worldwide fleet:
PSV > 900			86.3	%			86.7	%			86.5	%			89.1	%			85.6	%
PSV < 900			86.6				80.6				81.4				84.0				86.3
AHTS > 16K			93.7				84.4				57.6				26.2				100.0
AHTS 8 - 16K			83.4				87.4				97.0				90.7				79.0
AHTS 4 - 8K			85.7				84.3				85.8				86.6				84.2
Other			62.7				74.9				70.2				63.5				64.9
Total			83.7	%			82.5	%			82.5	%			82.4	%			81.6	%

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2022				2022				2022				2021				2021
AVERAGE VESSEL DAY RATES: (A)
Americas fleet:
PSV > 900		$	20,775			$	21,658			$	19,265			$	19,806			$	18,087
PSV < 900			15,197				14,762				15,111				13,169				11,932
AHTS > 16K			20,175				17,430				18,745				16,942				17,750
AHTS 8 - 16K			14,668				12,424				12,480				9,724				14,636
AHTS 4 - 8K			8,654				8,701				8,562				7,929				8,955
Other			12,616				15,601				12,633				12,644				12,640
Total			16,901				16,569				15,501				14,603				13,742
Asia Pacific fleet:
PSV > 900			25,072				21,850				14,529				14,315				14,126
PSV < 900			21,148				24,640				—				—				—
AHTS > 16K			18,902				24,664				—				—				—
AHTS 8 - 16K			16,144				17,609				—				—				—
AHTS 4 - 8K			6,759				8,281				5,528				5,236				5,346
Other			—				660				—				—				—
Total			18,530				13,748				10,975				10,683				10,830
Middle East fleet:
PSV > 900			24,061				18,513				13,147				13,071				13,011
PSV < 900			10,378				10,607				9,658				10,071				9,977
AHTS > 16K			13,487				14,348				—				—				—
AHTS 8 - 16K			10,666				9,832				9,058				9,201				8,938
AHTS 4 - 8K			6,396				6,044				5,672				5,730				5,734
Total			9,781				9,490				8,160				8,217				8,238
Europe/Mediterranean fleet:
PSV > 900			16,229				15,496				12,697				12,426				12,238
PSV < 900			13,323				13,806				10,248				9,887				10,608
AHTS > 16K			74,231				54,472				—				—				—
Total			17,436				15,776				12,124				11,917				11,890
West Africa fleet:
PSV > 900			18,502				16,592				14,768				14,966				15,978
PSV < 900			12,721				12,528				11,672				11,682				10,303
AHTS > 16K			16,719				18,036				—				—				—
AHTS 8 - 16K			12,212				12,743				11,219				10,842				10,851
AHTS 4 - 8K			10,595				10,105				8,721				8,500				8,500
Other			5,415				5,381				5,368				5,362				5,668
Total			11,467				10,721				8,834				9,052				8,562
Worldwide fleet:
PSV > 900			18,914				17,854				14,378				14,404				13,967
PSV < 900			12,915				13,008				11,855				11,427				10,732
AHTS > 16K			21,415				19,824				18,745				16,942				17,750
AHTS 8 - 16K			12,726				12,511				10,281				9,965				10,156
AHTS 4 - 8K			7,859				7,507				6,362				6,000				6,184
Other			5,979				5,275				5,924				6,053				6,332
Total		$	13,606			$	12,544			$	10,687			$	10,583			$	10,288

Note (A):  Average Vessel Day Rates equals Vessel Revenue / Days Worked

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2022				2022				2022				2021				2021
Americas
Vessel revenues		$	39,122			$	37,520			$	28,444			$	27,882			$	24,564
Vessel operating costs:
Crew costs			16,080				12,949				11,252				11,080				8,535
Repair and maintenance			3,594				2,866				2,627				2,487				2,951
Insurance			414				248				367				161				219
Fuel, lube and supplies			2,557				2,326				2,385				2,019				2,028
Other			3,090				3,054				2,196				4,347				3,008
Total vessel operating costs			25,735				21,443				18,827				20,094				16,741
Vessel operating margin ($)			13,387				16,077				9,617				7,788				7,823
Vessel operating margin (%)			34.2	%			42.8	%			33.8	%			27.9	%			31.8	%
Americas - Select operating statistics
Average vessels - Total fleet			34				34				34				35				36
Utilization - Total fleet			73.3	%			73.0	%			60.7	%			59.9	%			54.5	%
Average vessels - Active fleet			31				29				27				26				25
Utilization - Active fleet			80.3	%			86.8	%			75.5	%			80.1	%			80.4	%
Average day rates		$	16,901			$	16,569			$	15,501			$	14,603			$	13,742
Vessels commencing drydocks			4				3				5				5				4
Deferred drydocking and survey costs - beginning balance		$	19,208			$	18,422			$	16,270			$	13,124			$	12,919
Cash paid for deferred drydocking and survey costs			5,678				3,857				5,060				6,470				4,906
Amortization of deferred drydocking and survey costs			(2,932	)			(3,071	)			(2,908	)			(2,909	)			(2,936	)
Disposals, intersegment transfers and other			(182	)			—				—				(415	)			(1,765	)
Deferred drydocking and survey costs - ending balance		$	21,772			$	19,208			$	18,422			$	16,270			$	13,124

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2022				2022				2022				2021				2021
Asia Pacific
Vessel revenues		$	23,902			$	16,362			$	4,897			$	4,914			$	4,786
Vessel operating costs:
Crew costs			10,631				8,138				788				883				875
Repair and maintenance			947				945				284				342				552
Insurance			189				90				54				24				51
Fuel, lube and supplies			1,145				1,590				105				166				211
Other			1,909				1,176				422				459				500
Total vessel operating costs			14,821				11,939				1,653				1,874				2,189
Vessel operating margin ($)			9,081				4,423				3,244				3,040				2,597
Vessel operating margin (%)			38.0	%			27.0	%			66.2	%			61.9	%			54.3	%
Asia Pacific - Select operating statistics
Average vessels - Total fleet			17				19				5				5				5
Utilization - Total fleet			82.5	%			67.9	%			99.2	%			100.0	%			96.1	%
Average vessels - Active fleet			15				18				5				5				5
Utilization - Active fleet			91.4	%			70.4	%			99.2	%			100.0	%			96.1	%
Average day rates		$	18,530			$	13,748			$	10,975			$	10,683			$	10,830
Vessels commencing drydocks			—				2				—				—				—
Deferred drydocking and survey costs - beginning balance		$	852			$	542			$	710			$	1,019			$	1,352
Cash paid for deferred drydocking and survey costs			702				1,262				—				—				—
Amortization of deferred drydocking and survey costs			(139	)			(163	)			(168	)			(309	)			(379	)
Disposals, intersegment transfers and other			(436	)			(789	)			—				—				46
Deferred drydocking and survey costs - ending balance		$	979			$	852			$	542			$	710			$	1,019

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2022				2022				2022				2021				2021
Middle East
Vessel revenues		$	31,186			$	28,396			$	20,218			$	21,948			$	20,847
Vessel operating costs:
Crew costs			12,814				11,193				8,465				8,827				9,075
Repair and maintenance			3,441				3,429				2,124				2,804				2,392
Insurance			406				325				297				179				9
Fuel, lube and supplies			3,281				2,700				1,559				1,148				1,536
Other			1,804				2,249				2,457				2,708				2,834
Total vessel operating costs			21,746				19,896				14,902				15,666				15,846
Vessel operating margin ($)			9,440				8,500				5,316				6,282				5,001
Vessel operating margin (%)			30.3	%			29.9	%			26.3	%			28.6	%			24.0	%
Middle East - Select operating statistics
Average vessels - Total fleet			42				41				33				33				33
Utilization - Total fleet			83.3	%			80.8	%			82.9	%			88.0	%			83.4	%
Average vessels - Active fleet			42				41				33				32				32
Utilization - Active fleet			83.3	%			80.8	%			83.6	%			90.7	%			86.0	%
Average day rates		$	9,781			$	9,490			$	8,160			$	8,217			$	8,238
Vessels commencing drydocks			5				7				2				2				1
Deferred drydocking and survey costs - beginning balance		$	14,980			$	10,665			$	8,994			$	10,809			$	10,772
Cash paid for deferred drydocking and survey costs			2,345				6,362				3,855				327				2,441
Amortization of deferred drydocking and survey costs			(2,346	)			(2,308	)			(2,184	)			(2,142	)			(2,290	)
Disposals, intersegment transfers and other			14				261				—				—				(114	)
Deferred drydocking and survey costs - ending balance		$	14,993			$	14,980			$	10,665			$	8,994			$	10,809

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2022				2022				2022				2021				2021
Europe/Mediterranean
Vessel revenues		$	39,702			$	32,475			$	23,919			$	22,501			$	21,197
Vessel operating costs:
Crew costs			12,347				12,349				12,003				11,235				10,541
Repair and maintenance			1,652				2,414				2,106				3,562				1,754
Insurance			440				307				309				38				208
Fuel, lube and supplies			1,158				1,740				1,077				936				846
Other			2,170				2,468				2,026				1,919				1,926
Total vessel operating costs			17,767				19,278				17,521				17,690				15,275
Vessel operating margin ($)			21,935				13,197				6,398				4,811				5,922
Vessel operating margin (%)			55.2	%			40.6	%			26.7	%			21.4	%			27.9	%
Europe/Mediterranean - Select operating statistics
Average vessels - Total fleet			26				27				28				28				28
Utilization - Total fleet			95.2	%			82.8	%			77.8	%			72.4	%			68.3	%
Average vessels - Active fleet			26				25				24				23				21
Utilization - Active fleet			95.2	%			88.1	%			91.3	%			88.5	%			90.5	%
Average day rates		$	17,436			$	15,776			$	12,124			$	11,917			$	11,890
Vessels commencing drydocks			1				3				1				1				1
Deferred drydocking and survey costs - beginning balance		$	9,231			$	6,425			$	4,983			$	5,571			$	6,340
Cash paid for deferred drydocking and survey costs			315				4,206				2,575				93				892
Amortization of deferred drydocking and survey costs			(1,244	)			(1,400	)			(1,133	)			(1,096	)			(1,316	)
Disposals, intersegment transfers and other			286				—				—				415				(345	)
Deferred drydocking and survey costs - ending balance		$	8,588			$	9,231			$	6,425			$	4,983			$	5,571

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2022				2022				2022				2021				2021
West Africa
Vessel revenues		$	56,335			$	47,422			$	26,398			$	23,183			$	20,240
Vessel operating costs:
Crew costs			19,317				16,010				8,329				7,690				6,583
Repair and maintenance			3,910				3,823				2,320				2,307				2,848
Insurance			539				396				357				115				325
Fuel, lube and supplies			4,150				3,165				1,950				2,136				2,130
Other			5,052				4,307				2,652				3,615				3,407
Total vessel operating costs			32,968				27,701				15,608				15,863				15,293
Vessel operating margin ($)			23,367				19,721				10,790				7,320				4,947
Vessel operating margin (%)			41.5	%			41.6	%			40.9	%			31.6	%			24.4	%
West Africa - Select operating statistics
Average vessels - Total fleet			76				67				52				52				55
Utilization - Total fleet			69.9	%			72.7	%			63.5	%			53.5	%			46.7	%
Average vessels - Active fleet			67				59				42				39				36
Utilization - Active fleet			79.4	%			82.9	%			79.1	%			71.4	%			71.3	%
Average day rates		$	11,467			$	10,721			$	8,834			$	9,052			$	8,562
Vessels commencing drydocks			5				5				3				3				3
Deferred drydocking and survey costs - beginning balance		$	9,390			$	8,308			$	9,777			$	9,987			$	8,989
Cash paid for deferred drydocking and survey costs			3,780				2,764				1,122				3,004				2,378
Amortization of deferred drydocking and survey costs			(1,943	)			(2,210	)			(2,591	)			(3,214	)			(3,148	)
Disposals, intersegment transfers and other			318				528				—				—				1,768
Deferred drydocking and survey costs - ending balance		$	11,545			$	9,390			$	8,308			$	9,777			$	9,987

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2022				2022				2022				2021				2021
Worldwide
Vessel revenues		$	190,247			$	162,175			$	103,876			$	100,428			$	91,634
Vessel operating costs:
Crew costs			71,189				60,639				40,837				39,715				35,609
Repair and maintenance			13,544				13,477				9,461				11,502				10,497
Insurance			1,988				1,366				1,384				517				812
Fuel, lube and supplies			12,291				11,521				7,076				6,405				6,751
Other			14,025				13,254				9,753				13,048				11,675
Total vessel operating costs			113,037				100,257				68,511				71,187				65,344
Vessel operating margin ($)			77,210				61,918				35,365				29,241				26,290
Vessel operating margin (%)			40.6	%			38.2	%			34.0	%			29.1	%			28.7	%
Worldwide - Select operating statistics
Average vessels - Total fleet			195				188				152				153				157
Utilization - Total fleet			77.8	%			75.5	%			70.9	%			67.4	%			61.7	%
Average vessels - Active fleet			181				172				131				125				119
Utilization - Active fleet			83.7	%			82.5	%			82.5	%			82.4	%			81.6	%
Average day rates		$	13,606			$	12,544			$	10,687			$	10,583			$	10,288
Vessels commencing drydocks			15				20				11				11				9
Deferred drydocking and survey costs - beginning balance		$	53,661			$	44,362			$	40,734			$	40,510			$	40,372
Cash paid for deferred drydocking and survey costs			12,820				18,451				12,612				9,894				10,617
Amortization of deferred drydocking and survey costs			(8,604	)			(9,152	)			(8,984	)			(9,670	)			(10,069	)
Disposals, intersegment transfers and other			—				—				—				—				(410	)
Deferred drydocking and survey costs - ending balance		$	57,877			$	53,661			$	44,362			$	40,734			$	40,510

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2022				2022				2022				2021				2021
Net income (loss)		$	4,910			$	(25,014	)		$	(12,271	)		$	(38,079	)		$	(26,407	)
Interest and other debt costs			4,391				4,284				4,175				3,417				3,681
Income tax (benefit) expense			6,352				6,619				5,218				(3,047	)			887
Depreciation			22,252				22,614				17,673				18,618				17,911
Amortization of deferred drydock and survey costs			8,604				9,152				8,984				9,670				10,069
EBITDA (A), (B), (C)			46,509				17,655				23,779				(9,421	)			6,141
Long-lived asset impairment (credit) and other			1,214				—				(500	)			13,476				2,167
Affiliate credit loss impairment expense (credit)			—				—				—				1,400				—
Loss on early extinguishment of debt			—				—				—				11,100				—
Loss on warrants			—				14,175				—				—				—
Gain on bargain purchase			—				—				(1,300	)			—				—
One-time acquisition, restructuring and integration related costs			4,332				7,314				2,305				221				112
Adjusted EBITDA (A), (B), (C)		$	52,055			$	39,144			$	24,284			$	16,776			$	8,420

Note (A):  EBITDA excludes interest and other debt costs, income tax expense, depreciation and amortization. Additionally, Adjusted EBITDA excludes impairment charges, loss on early extinguishment of debt, loss on warrants, gain on bargain purchase and acquisition, restructuring and integration related costs.

Note (B):  EBITDA and Adjusted EBITDA for the three months ended September 30, 2022, and for each of the prior four quarters includes non-cash, stock-based compensation expense of $1,923, $1,963, $1,458, $1,439 and $1,523 respectively.

Note (C):  EBITDA and Adjusted EBITDA for the three months ended September 30, 2022, and for each of the prior four quarters includes foreign exchange gain (losses) of $(3,997), $(1,881), $946, $582 and $(523) respectively.

Non-GAAP Financial Measures

We disclose and discuss EBITDA and Adjusted EBITDA as non-GAAP financial measures in our public releases, including quarterly earnings releases, investor conference calls and other filings with the Securities and Exchange Commission. We define EBITDA as earnings (net income or loss) before interest and other debt costs, income tax expense, depreciation and amortization. Additionally, Adjusted EBITDA excludes impairment charges and merger and integration related costs. Our measures of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures presented by other companies. Other companies may calculate EBITDA and Adjusted EBITDA differently than we do, which may limit its usefulness as a comparative measure.

Because EBITDA and Adjusted EBITDA are not measures of financial performance calculated in accordance with GAAP, they should not be considered in isolation or as a substitute for operating income, net income or loss, cash provided (used) in operating activities, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP.

EBITDA and Adjusted EBITDA are widely used by investors and other users of our financial statements as a supplemental financial measure that, when viewed with our GAAP results and the accompanying reconciliations, we believe provide additional information that is useful to gain an understanding of the factors and trends affecting our ability to service debt, pay taxes and fund drydocking and survey costs and capital expenditures. We also believe the disclosure of EBITDA and Adjusted EBITDA helps investors meaningfully evaluate and compare our cash flow generating capacity from quarter-to-quarter and year-to-year.

EBITDA and Adjusted EBITDA are also financial metrics used by management (i) as a supplemental internal measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; (ii) to compare to the EBITDA and Adjusted EBITDA of other companies when evaluating potential acquisitions; and (iii) to assess our ability to service existing fixed charges and incur additional indebtedness.

TIDEWATER INC. UNAUDITED OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2022				2022				2022				2021				2021
Net cash provided by (used in) operating activities (A)		$	28,113			$	(21,603	)		$	(11,624	)		$	6,938			$	(2,499	)
Cash interest expense			353				7,626				—				3,664				3,055
Interest income and other			(581	)			(349	)			(2,186	)			(1,426	)			(148	)
Additions to property and equipment			(6,328	)			(4,151	)			(1,229	)			(6,368	)			(722	)
Acquisitions			8,785				(28,486	)			(1,039	)			—				—
Expansion capital			(8,785	)			28,486				1,039				—				—
Free cash flow before proceeds from asset sales			21,557				(18,477	)			(15,039	)			2,808				(314	)
Proceeds from asset sales			312				3,535				4,628				54				4,396
Free cash flow		$	21,869			$	(14,942	)		$	(10,411	)		$	2,862			$	4,082

Free cash flow is a non-GAAP investment performance indicator which we believe provides useful information regarding the net cash generated by the Company before any payments to capital providers. Free cash flow is determined from net cash provided by (used in) operating activities adjusted for capital expenditures, excluding expansion capital, proceeds from asset sales, cash interest expense and interest income. Free cash flow is not defined by U.S. GAAP and is not a substitute for net cash provided by operating activities.

Note (A):  Net cash provided by (used in) operating activities is affected by changes in our assets and liabilities and the amounts we pay in cash for our drydocks and vessel surveys as illustrated in the following table:

		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2022				2022				2022				2021				2021
Cash provided by (used in) changes in assets and liabilities, excluding drydock payments		$	1,913			$	(27,697	)		$	(13,401	)		$	265			$	2,586
Cash paid for deferred drydock and survey costs			(12,820	)			(18,451	)			(12,612	)			(9,894	)			(10,617	)
Total sources (uses) of cash for changes in assets and liabilities		$	(10,907	)		$	(46,148	)		$	(26,013	)		$	(9,629	)		$	(8,031	)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221028005505/en/

Tidewater Inc.

West Gotcher

Vice President,

Finance and Investor Relations

+1.713.470.5285

Source: Tidewater Inc.

FAQ

What were Tidewater's Q3 2022 earnings?

Tidewater reported a net income of $5.4 million for Q3 2022.

How much revenue did Tidewater earn in Q3 2022?

Tidewater earned $191.8 million in revenue for Q3 2022.

What was Tidewater's free cash flow in Q3 2022?

The free cash flow for Tidewater was $21.9 million in Q3 2022.

What is the significance of Tidewater's net income in Q3 2022?

It marks Tidewater's first quarterly net income since emerging from bankruptcy in 2017.

What is Tidewater's plan for synergies from the SPO acquisition?

Tidewater expects to realize $45 million in synergies from the SPO acquisition by 2023.