Tidewater Reports Results for the Three and Nine Months Ended September 30, 2023

Rhea-AI Summary

Tidewater Inc. (NYSE:TDW) announced revenue of $299.3 million for Q3 2023, a 39.2% increase from Q2 2023. The average day rate increased to $17,865 per day, $1,823 higher than the previous quarter. Net income was $26.2 million, an increase of $3.6 million from Q2 2023. The company also completed the integration of 32 of the 37 recently acquired PSVs from Solstad Offshore. Tidewater initiated 2024 revenue guidance of $1.40 to $1.45 billion and gross margin guidance of 52%. They also announced a share repurchase authorization for the maximum permissible amount under existing debt agreements.

Third Quarter 2023 Highlights

• Revenue of $299.3 million, a 39.2% increase from the second quarter of 2023
• Average day rate increased to $17,865 per day, $1,823 higher than the second quarter of 2023
• Composite leading edge term contract day rate up 21.7% to $28,609
• Net income of $26.2 million, an increase of $3.6 million from the second quarter of 2023
• Adjusted EBITDA of $117.2 million, an increase of $45.2 million from the second quarter of 2023
• Completed integration of 32 of the 37 recently acquired PSVs from Solstad Offshore
• Initiating 2024 revenue guidance of $1.40 to $1.45 billion and 2024 gross margin guidance of 52%
• Announcing share repurchase authorization for the maximum permissible amount under existing debt agreements

HOUSTON--(BUSINESS WIRE)-- Tidewater Inc. (NYSE:TDW) announced today revenue for the three and nine months ended September 30, 2023 of $299.3 million and $707.3 million, respectively, compared with $191.8 million and $460.9 million, respectively, for the three and nine months ended September 30, 2022. Tidewater's net income for the three and nine months ended September 30, 2023, was $26.2 million ($0.49 per common share) and $59.5 million ($1.13 per common share), respectively, compared with net income (losses) of $5.4 million ($0.10 per common share) and $(32.4) million ($0.76 per common share), respectively, for the three and nine months ended September 30, 2022.

Quintin Kneen, Tidewater’s President and Chief Executive Officer, commented, “The third quarter marks the third consecutive quarterly cyclical revenue and global average day rate high-water marks. Third quarter revenue nicely exceeded our expectations as a continued push on day rates globally drove consolidated day rates up by approximately $1,800 per day sequentially, representing the largest sequential improvement in day rates since the recovery began. The pace of day rate expansion was largely a combination of legacy contracts rolling on to current market day rates and a meaningful step up in leading edge term contract day rates; leading edge term contracts increased to $28,609 sequentially, an improvement of approximately $5,100 per day over the same measure in the prior quarter. The momentum in day rates is being driven by a global supply shortage of large and small offshore vessels, and, in fact, our medium and small classes of PSVs showed the most relative improvement in leading edge term contract day rates during the third quarter. We remain confident in the outlook for the business as demand for our vessels remains robust across a variety of end markets, including offshore drilling, subsea, construction, offshore wind and existing production work. This confidence allows us to initiate revenue guidance for 2024 of $1.40 to $1.45 billion and initial gross margin guidance of 52%, which is driven by our projection of an increase in year-over-year day rates of over $4,000 and an annual utilization level of 86%, increases that are in line with our recent quarterly improvements.

“On a global basis, revenue, gross profit, utilization, and day rate were all up from the previous quarter. Revenue for the quarter totaled $299.3 million, an increase of $84.3 million, or 39.2% sequentially through a combination of the recently acquired PSVs and improved day rates and utilization globally. Utilization increased to 82.1% from 79.4% in the prior quarter. We incurred approximately $6.0 million of acquisition and integration related expenses associated with the acquisition of 37 PSVs from Solstad Offshore. As of today, we have 32 of the acquired PSVs integrated into the Tidewater infrastructure and anticipate the remaining five vessels to be completed by the end of November. We now anticipate fourth quarter 2023 revenue of approximately $309 million and that gross margin will be approximately 47%.

“We are pleased to announce that the Board has authorized a stock repurchase program, under which we are authorized to purchase up to $35.0 million of the Company’s common stock over the next four months. We plan to use the repurchase program opportunistically, taking into consideration market conditions, our business outlook and opportunity to deploy the capital into value accretive acquisitions. Similar to the Solstad and Swire acquisitions, we continue to pursue additional acquisitions that enhance the Company's strategic position and leadership in certain vessel classes or geographies. Our philosophy will be to weigh the value of stock repurchases against other capital allocation opportunities and commit to pursuing the highest return on capital opportunity available. We are excited to again be in a position to actively consider returning capital to our shareholders.

“Turning to our regional operating results, each of our regions experienced an overall increase in revenue, gross profit, and average day rate, further evidence of the global shortage of large and small offshore vessels. Day rates in the Americas region increased approximately 15.9% sequentially with particular areas of strength in the U.S. Gulf of Mexico and the Caribbean. Day rates in West Africa increased 9.0% sequentially due to broad-based secular tailwinds in the region. Similarly, day rates in Asia Pacific increased by 6.7% sequentially as activity through-out Southeast Asia and Australia continues to improve. Day rates in the Europe and Mediterranean region moved up modestly during the quarter, up approximately 0.6%, as a somewhat muted late summer season in the North Sea, particularly for our large AHTS vessels, was offset by strength in the Mediterranean. Regional utilization was up in all regions except for West Africa region, where utilization was down due to higher frictional unemployment during the quarter.

“I am grateful to all of our diligent and committed employees who have contributed to our continued business success, and I would like to extend a special thank you to both the Tidewater and Solstad employees who have contributed to the integration of the newly acquired vessels to further enhance our industry-leading fleet. As always, we remain committed to providing a safe and rewarding environment for our employees as we move forward together building the safest, most sustainable, most reliable, most profitable, high specification offshore energy support vessel fleet in the world.”

In addition to the number of outstanding shares, as of September 30, 2023, the company also has the following in-the-money warrants.

Common shares outstanding			52,839,862
New Creditor Warrants (strike price $0.001 per common share)			81,244
GulfMark Creditor Warrants (strike price $0.01 per common share)			95,835
Total			53,016,941

Tidewater will hold a conference call to discuss results for the three months ending September 30, 2023 on November 7, 2023, 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 7, 2023 and will continue until 11:59 p.m. Central Time on December 7, 2023. To access the replay, visit the Investor Relations section of Tidewater’s website at investor.tdw.com.

About Tidewater

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.

Cautionary Statement

This news release contains “forward-looking statements” within the meaning of the U.S. federal securities laws – that is, any statements that are not historical facts. Such statements often contain words such as “expect,” “believe,” “think,” “anticipate,” “predict,” “plan,” “assume,” “estimate,” “forecast,” “target,” “projections,” “intend,” “should,” “will,” “shall” and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain and based on our management’s current expectations and beliefs concerning future developments and their potential impact on Tidewater Inc. and its subsidiaries (the “Company”).

These forward-looking statements involve risks and uncertainties that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including, among others: fluctuations in worldwide energy demand and oil and gas prices; fleet additions by competitors and industry overcapacity; limited capital resources available to replenish our asset base as needed, including through acquisitions or vessel construction, and to fund our capital expenditure needs; uncertainty of global financial market conditions and potential constraints in accessing capital or credit if and when needed with favorable terms, if at all; changes in decisions and capital spending by customers based on industry expectations for offshore exploration, field development and production; consolidation of our customer base; loss of a major customer; changing customer demands for vessel specifications, which may make some of our older vessels technologically obsolete for certain customer projects or in certain markets; rapid technological changes; delays and other problems associated with vessel maintenance; the continued availability of qualified personnel and our ability to attract and retain them; the operating risks normally incident to our lines of business, including the potential impact of liquidated counterparties; our ability to comply with covenants in our indentures and other debt instruments; acts of terrorism and piracy; the impact of regional or global public health crises or pandemics; the impact of potential information technology, cybersecurity or data security breaches; integration of acquired businesses and entry into new lines of business; disagreements with our joint venture partners; natural disasters or significant weather conditions; unsettled political conditions, war, civil unrest and governmental actions, such as expropriation or enforcement of customs or other laws that are not well developed or consistently enforced; risks associated with our international operations, including local content, local currency or similar requirements especially in higher political risk countries where we operate; interest rate and foreign currency fluctuations; labor changes proposed by international conventions; increased regulatory burdens and oversight; changes in laws governing the taxation of foreign source income; retention of skilled workers; enforcement of laws related to the environment, labor and foreign corrupt practices; increased global concern, regulation and scrutiny regarding climate change; increased stockholder activism; the potential liability for remedial actions or assessments under existing or future environmental regulations or litigation; the effects of asserted and unasserted claims and the extent of available insurance coverage; the resolution of pending legal proceedings; and other risks and uncertainties detailed in our most recent Forms 10-K, Form 10-Qs and Form 8-Ks filed with or furnished to the SEC.

If one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assumptions prove incorrect, actual results or outcomes may vary materially from those reflected in our forward-looking statements. Forward-looking and other statements in this presentation regarding our environmental, social and other sustainability plans, goals or activities are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the SEC. In addition, historical, current, and forward-looking environmental, social and sustainability-related statements may be based on standards still developing, internal controls and processes that we continue to evolve, and assumptions subject to change in the future. Statements in this release are made as of the date hereof, and the Company disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

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, 2023 and December 31, 2022; the Consolidated Statements of Operations and Consolidated Statements of Equity for the three and nine months ended September 30, 2023 and 2022; and the Consolidated Statements of Cash Flows for the nine months ended September 30, 2023 and 2022. Extracts are drawn from the September 30, 2023 unaudited quarterly and year to date financial statements and the December 31, 2022 audited annual financial statements of Tidewater Inc. All per-share amounts are stated on a diluted basis.

TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, except per share data)
		Three Months Ended								Nine Months Ended
		September 30, 2023				September 30, 2022				September 30, 2023				September 30, 2022
Revenues:
Vessel revenues		$	296,975			$	190,247			$	698,478			$	456,298
Other operating revenues			2,287				1,515				8,849				4,640
Total revenues			299,262				191,762				707,327				460,938
Costs and expenses:
Vessel operating costs			164,239				113,037				397,962				281,805
Costs of other operating revenues			1,481				592				3,005				1,436
General and administrative			21,001				27,267				70,559				73,288
Depreciation and amortization			57,730				30,856				121,164				89,279
Long-lived asset impairment and other			—				1,214				—				714
(Gain) loss on asset dispositions, net			(863	)			(264	)			(4,483	)			826
Total costs and expenses			243,588				172,702				588,207				447,348
Operating income			55,674				19,060				119,120				13,590
Other income (expense):
Foreign exchange loss			(2,149	)			(3,997	)			(3,620	)			(4,932	)
Equity in net earnings (losses) of unconsolidated companies			4				9				29				(235	)
Interest income and other, net			568				581				3,488				4,416
Loss on warrants			—				—				—				(14,175	)
Interest and other debt costs, net			(19,288	)			(4,391	)			(28,209	)			(12,850	)
Total other expense			(20,865	)			(7,798	)			(28,312	)			(27,776	)
Income (loss) before income taxes			34,809				11,262				90,808				(14,186	)
Income tax expense			9,260				6,352				32,515				18,189
Net income (loss)			25,549				4,910				58,293				(32,375	)
Less: Net loss attributable to noncontrolling interests			(650	)			(470	)			(1,228	)			(6	)
Net income (loss) attributable to Tidewater Inc.		$	26,199			$	5,380			$	59,521			$	(32,369	)
Basic income (loss) per common share		$	0.50			$	0.12			$	1.16			$	(0.76	)
Diluted income (loss) per common share		$	0.49			$	0.10			$	1.13			$	(0.76	)
Weighted average common shares outstanding			52,230				44,451				51,235				42,570
Dilutive effect of warrants, restricted stock units and stock options			1,380				7,069				1,322				—
Adjusted weighted average common shares			53,610				51,520				52,557				42,570

TIDEWATER INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands, except share and par value data)
		September 30, 2023				December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents		$	275,070			$	164,192
Restricted cash			4,973				1,241
Trade and other receivables, net of allowance for credit losses of $15,448 and $14,060 at September 30, 2023 and December 31, 2022, respectively			250,671				156,465
Marine operating supplies			27,489				30,830
Assets held for sale			565				4,195
Prepaid expenses and other current assets			16,598				20,985
Total current assets			575,366				377,908
Net properties and equipment			1,348,001				796,655
Deferred drydocking and survey costs			99,215				61,080
Indemnification assets			18,648				28,369
Other assets			30,325				33,644
Total assets		$	2,071,555			$	1,297,656
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	57,183			$	38,946
Accrued expenses			119,631				105,518
Current portion of long-term debt			102,369				—
Other current liabilities			53,301				50,323
Total current liabilities			332,484				194,787
Long-term debt			641,301				169,036
Other liabilities			66,246				67,843
Commitments and contingencies
Equity:
Common stock of $0.001 par value, 125,000,000 shares authorized, 52,839,862 and 50,554,179 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively			53				51
Additional paid-in-capital			1,668,392				1,556,990
Accumulated deficit			(640,128	)			(699,649	)
Accumulated other comprehensive loss			4,413				8,576
Total stockholders' equity			1,032,730				865,968
Noncontrolling interests			(1,206	)			22
Total equity			1,031,524				865,990
Total liabilities and equity		$	2,071,555			$	1,297,656

TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (In Thousands)
		Three Months Ended								Nine Months Ended
		September 30, 2023				September 30, 2022				September 30, 2023				September 30, 2022
Net income (loss)		$	25,549			$	4,910			$	58,293			$	(32,375	)
Other comprehensive income (loss):
Unrealized loss on note receivable			(153	)			(429	)			(469	)			(1,275	)
Change in liability of pension plans			—				140				(3,694	)			81
Total comprehensive income (loss)		$	25,396			$	4,621			$	54,130			$	(33,569	)

TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands)
		Nine Months				Nine Months
		Ended				Ended
		September 30, 2023				September 30, 2022
Operating activities:
Net income (loss)		$	58,293			$	(32,375	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation			85,989				62,539
Amortization of deferred drydocking and survey costs			35,175				26,740
Amortization of debt premiums and discounts			2,644				1,157
Amortization of below market contracts			(1,906	)			—
Provision for deferred income taxes			69				134
(Gain) loss on asset dispositions, net			(4,483	)			826
Gain on pension settlement			(1,807	)			—
Gain on bargain purchase			—				(1,300	)
Long-lived asset impairment and other			—				714
Loss on warrants			—				14,175
Stock-based compensation expense			7,247				5,344
Changes in assets and liabilities, net of effects of business acquisition:
Trade and other receivables			(92,684	)			(30,301	)
Changes in due to/from affiliate, net			—				(20	)
Accounts payable			18,237				9,364
Accrued expenses			14,231				(913	)
Deferred drydocking and survey costs			(73,309	)			(43,883	)
Other, net			9,778				(17,315	)
Net cash provided by (used in) operating activities			57,474				(5,114	)
Cash flows from investing activities:
Proceeds from sales of assets			9,604				8,475
Acquisitions, net of cash acquired			(594,191	)			(20,740	)
Additions to properties and equipment			(23,202	)			(11,708	)
Net cash used in investing activities			(607,789	)			(23,973	)
Cash flows from financing activities:
Exercise of warrants			111,483				—
Proceeds from issuance of shares			—				70,630
Repurchase of SPO acquisition warrants			—				(70,630	)
Issuance of long-term debt			575,000				—
Acquisition of non-controlling interest in a majority owned subsidiary			(1,427	)			—
Debt issuance costs			(14,758	)			(393	)
Tax on share-based awards			(5,899	)			(2,276	)
Net cash provided by (used in) financing activities			664,399				(2,669	)
Net change in cash, cash equivalents and restricted cash			114,084				(31,756	)
Cash, cash equivalents and restricted cash at beginning of period			167,977				154,276
Cash, cash equivalents and restricted cash at end of period		$	282,061			$	122,520

Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest, net of amounts capitalized		$	8,452			$	7,979
Income taxes		$	36,585			$	16,143
Supplemental disclosure of noncash investing activities:
Acquisition of SPO		$	—			$	162,648
Purchase of three vessels		$	12,198			$	—
Supplemental disclosure of noncash financing activities:
Warrants issued for SPO acquisition		$	—			$	162,648
Repurchase of SPO acquisition warrants		$	—			$	992
Debt incurred for the purchase of three vessels		$	12,198			$	—
Note: Cash, cash equivalents and restricted cash at September 30, 2023 includes $2.0 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, 2023		$	51			$	1,554,793			$	(666,327	)		$	4,566			$	(556	)		$	892,527
Total comprehensive income (loss)			—				—				26,199				(153	)			(650	)			25,396
Exercise of warrants into common stock			2				111,481				—				—				—				111,483
Amortization of share-based awards			—				2,118				—				—				—				2,118
Balance at September 30, 2023		$	53			$	1,668,392			$	(640,128	)		$	4,413			$	(1,206	)		$	1,031,524
Balance at June 30, 2022		$	42			$	1,554,561			$	(715,649	)		$	1,763			$	930			$	841,647
Total comprehensive loss			—				—				5,380				(289	)			(470	)			4,621
Issuance of common stock			4				72,253				—				—				—				72,257
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

		Nine Months Ended
														Accumulated
						Additional								other				Non
		Common				paid-in				Accumulated				comprehensive				controlling
		stock				capital				deficit				income (loss)				interest				Total
Balance at December 31, 2022		$	51			$	1,556,990			$	(699,649	)		$	8,576			$	22			$	865,990
Total comprehensive income (loss)			—				—				59,521				(4,163	)			(1,228	)			54,130
Acquisition of non-controlling interest in a majority owned subsidiary			—				(1,427	)			—				—				—				(1,427	)
Exercise of warrants into common stock			2				111,481				—				—				—				111,483
Amortization of share-based awards			—				1,348				—				—				—				1,348
Balance at September 30, 2023		$	53			$	1,668,392			$	(640,128	)		$	4,413			$	(1,206	)		$	1,031,524
Balance at December 31, 2021		$	41			$	1,376,494			$	(677,900	)		$	2,668			$	466			$	701,769
Total comprehensive 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

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, 2023								September 30, 2022								September 30, 2023								September 30, 2022
Vessel revenues:
Americas		$	70,717				24	%		$	39,122				21	%		$	168,780				24	%		$	105,086				23	%
Asia Pacific			38,994				13	%			23,902				12	%			83,603				12	%			45,161				10	%
Middle East			34,685				12	%			31,186				16	%			97,303				14	%			79,800				17	%
Europe/Mediterranean			78,929				26	%			39,702				21	%			149,474				21	%			96,096				21	%
West Africa			73,650				25	%			56,335				30	%			199,318				29	%			130,155				29	%
Total vessel revenues		$	296,975				100	%		$	190,247				100	%		$	698,478				100	%		$	456,298				100	%
Vessel operating costs:
Crew costs		$	97,286				32	%		$	71,189				37	%		$	231,936				33	%		$	172,665				38	%
Repair and maintenance			23,595				8	%			13,544				7	%			57,081				8	%			36,482				8	%
Insurance			2,359				1	%			1,988				1	%			6,532				1	%			4,738				1	%
Fuel, lube and supplies			17,770				6	%			12,291				7	%			45,283				7	%			30,888				7	%
Other			23,229				8	%			14,025				7	%			57,130				8	%			37,032				8	%
Total vessel operating costs			164,239				55	%			113,037				59	%			397,962				57	%			281,805				62	%
Vessel operating margin (A)		$	132,736				45	%		$	77,210				41	%		$	300,516				43	%		$	174,493				38	%
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, 2023								September 30, 2022								September 30, 2023								September 30, 2022
Vessel operating profit (loss):
Americas		$	12,586				4	%		$	2,952				2	%		$	26,793				4	%		$	8,800				2	%
Asia Pacific			14,555				5	%			3,260				2	%			27,149				4	%			4,534				1	%
Middle East			(1,143	)			(0	)%			605				0	%			(3,144	)			(1	)%			(1,585	)			(0	)%
Europe/Mediterranean			9,576				3	%			13,137				7	%			19,919				3	%			14,970				3	%
West Africa			28,392				10	%			12,322				6	%			71,087				10	%			24,807				5	%
Other operating profit			806				0	%			922				0	%			5,844				1	%			3,204				1	%
		64,772					22	%		33,198					17	%		147,648					21	%		54,730					12	%
Corporate expenses (A)			(9,961	)			(3	)%			(13,188	)			(7	)%			(33,011	)			(5	)%			(39,600	)			(9	)%
Gain (loss) on asset dispositions, net			863				0	%			264				0	%			4,483				1	%			(826	)			(0	)%
Long-lived asset impairment and other			—				0	%			(1,214	)			0	%			—				0	%			(714	)			(0	)%
Operating income		$	55,674				19	%		$	19,060				10	%		$	119,120				17	%		$	13,590				3	%
Note (A): General and administrative expenses for the three months and nine months ended September 30, 2023 include stock-based compensation of $2.4 million and $7.2 million, respectively. General and administrative expenses for the three and nine months ended September 30, 2022 include stock-based compensation of $1.9 million and $5.3 million, respectively. In addition, vessel operating and general and administrative costs for the three months and nine months ended September 30, 2023, include $6.0 million and $8.7 million in acquisition, restructuring and integration related costs, respectively. Vessel operating and general and administrative costs for the three and nine months ended September 30, 2022, include $4.3 million and $14.0 million in acquisition, 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,
		2023				2023				2023				2022				2022
Revenues:
Vessel revenues		$	296,975			$	210,323			$	191,180			$	185,106			$	190,247
Other operating revenues			2,287				4,638				1,924				1,640				1,515
Total revenues			299,262				214,961				193,104				186,746				191,762
Costs and expenses:
Vessel operating costs (A)			164,239				118,264				115,459				115,496				113,037
Costs of other operating revenue			1,481				373				1,151				694				592
General and administrative (A)			21,001				26,013				23,545				28,633				27,267
Depreciation and amortization			57,730				32,768				30,666				29,881				30,856
Long-lived asset impairment and other			—				—				—				—				1,214
Gain on asset dispositions, net			(863	)			(1,404	)			(2,216	)			(1,076	)			(264	)
Total operating costs and expenses			243,588				176,014				168,605				173,628				172,702
Operating income			55,674				38,947				24,499				13,118				19,060
Other income (expense):
Foreign exchange gain (loss)			(2,149	)			(3,819	)			2,348				2,105				(3,997	)
Equity in net earnings of unconsolidated companies			4				25				—				14				9
Interest income and other, net			568				2,790				130				981				581
Interest and other debt costs, net			(19,288	)			(4,731	)			(4,190	)			(4,339	)			(4,391	)
Total other expense			(20,865	)			(5,735	)			(1,712	)			(1,239	)			(7,798	)
Income before income taxes			34,809				33,212				22,787				11,879				11,262
Income tax expense			9,260				11,284				11,971				1,697				6,352
Net income			25,549				21,928				10,816				10,182				4,910
Net income (loss) attributable to noncontrolling interests			(650	)			(656	)			78				(438	)			(470	)
Net income attributable to Tidewater Inc.		$	26,199			$	22,584			$	10,738			$	10,620			$	5,380
Basic income per common share		$	0.50			$	0.44			$	0.21			$	0.22			$	0.12
Diluted income per common share		$	0.49			$	0.43			$	0.21			$	0.20			$	0.10
Weighted average common shares outstanding			52,230				50,857				50,604				48,766				44,451
Dilutive effect of warrants, restricted stock units and stock options			1,380				1,148				1,368				3,069				7,069
Adjusted weighted average common shares			53,610				52,005				51,972				51,835				51,520
Vessel operating margin		$	132,736			$	92,059			$	75,721			$	69,610			$	77,210
Note (A): Acquisition, restructuring and integration related costs		$	6,079			$	1,242			$	1,426			$	5,150			$	4,332

TIDEWATER INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands)
		September 30,				June 30,				March 31,				December 31,				September 30,
		2023				2023				2023				2022				2022
ASSETS
Current assets:
Cash and cash equivalents		$	275,070			$	171,261			$	165,145			$	164,192			$	115,014
Restricted cash			4,973				1,242				4,972				1,241				4,965
Trade and other receivables, net			250,671				195,906				182,198				156,465				181,646
Marine operating supplies			27,489				22,495				24,448				30,830				20,764
Assets held for sale			565				630				695				4,195				6,815
Prepaid expenses and other current assets			16,598				18,958				18,978				20,985				17,509
Total current assets			575,366				410,492				396,436				377,908				346,713
Net properties and equipment			1,348,001				784,873				786,168				796,655				815,990
Deferred drydocking and survey costs			99,215				92,481				82,787				61,080				57,877
Indemnification assets			18,648				22,678				27,698				28,369				30,117
Other assets			30,325				33,640				34,058				33,644				32,364
Total assets		$	2,071,555			$	1,344,164			$	1,327,147			$	1,297,656			$	1,283,061
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	57,183			$	69,822			$	64,775			$	38,946			$	31,829
Accrued expenses			119,631				91,875				107,348				105,518				105,945
Current portion of long-term debt			102,369				2,441				—				—				—
Other current liabilities			53,301				42,305				43,220				50,323				46,629
Total current liabilities			332,484				206,443				215,343				194,787				184,403
Long-term debt			641,301				179,573				169,423				169,036				168,649
Other liabilities			66,246				65,621				68,968				67,843				82,910
Equity:
Common stock			53				51				51				51				46
Additional paid-in-capital			1,668,392				1,554,793				1,553,919				1,556,990				1,555,388
Accumulated deficit			(640,128	)			(666,327	)			(688,911	)			(699,649	)			(710,269	)
Accumulated other comprehensive income			4,413				4,566				8,254				8,576				1,474
Total stockholders' equity			1,032,730				893,083				873,313				865,968				846,639
Noncontrolling interests			(1,206	)			(556	)			100				22				460
Total equity			1,031,524				892,527				873,413				865,990				847,099
Total liabilities and equity		$	2,071,555			$	1,344,164			$	1,327,147			$	1,297,656			$	1,283,061

TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS – QUARTERLY DATA (In Thousands)
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2023				2023				2023				2022				2022
Operating activities:
Net income (loss)		$	25,549			$	21,928			$	10,816			$	10,182			$	4,910
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation			43,845				21,096				21,048				20,983				22,252
Amortization of deferred drydocking and survey costs			13,885				11,672				9,618				8,898				8,604
Amortization of debt premiums and discounts			1,802				422				420				522				392
Amortization of below market contracts			(1,906	)			—				—				—				—
(Provision) benefit for deferred income taxes			35				(1	)			35				(98	)			(11	)
Gain on asset dispositions, net			(863	)			(1,404	)			(2,216	)			(1,076	)			(264	)
Gain on pension settlement			—				(1,807	)			—				—				—
Long-lived asset impairment and other			—				—				—				—				1,214
Stock-based compensation expense			2,496				2,648				2,103				2,028				1,923
Changes in assets and liabilities, net of effects of business acquisition:
Trade and other receivables			(54,765	)			(12,186	)			(25,733	)			26,172				4,784
Accounts payable			(12,639	)			5,047				25,829				7,117				1,292
Accrued expenses			27,775				(15,374	)			1,830				(427	)			(3,267	)
Deferred drydocking and survey costs			(20,618	)			(21,366	)			(31,325	)			(12,117	)			(12,820	)
Other, net			10,343				(934	)			369				(16,844	)			(896	)
Net cash provided by operating activities			34,939				9,741				12,794				45,340				28,113
Cash flows from investing activities:
Proceeds from sales of assets			945				2,943				5,716				5,093				312
Acquisitions, net of cash acquired			(594,191	)			—				—				—				8,785
Additions to properties and equipment			(5,702	)			(8,849	)			(8,651	)			(4,929	)			(6,328	)
Net cash provided by (used in) investing activities			(598,948	)			(5,906	)			(2,935	)			164				2,769
Cash flows from financing activities:
Exercise of warrants			111,483				—				—				—				—
Proceeds from issuance of shares			—				—				—				117,202				70,630
Repurchase of SPO acquisition warrants			—				—				—				(117,202	)			(70,630	)
Issuance of long-term debt			575,000				—				—				—				—
Acquisition of non-controlling interest in a majority owned subsidiary			—				—				(1,427	)			—				—
Debt issuance costs			(14,758	)			—				—				—				(22	)
Tax on share-based awards			(378	)			(1,774	)			(3,747	)			(47	)			(100	)
Net cash provided by (used in) financing activities			671,347				(1,774	)			(5,174	)			(47	)			(122	)
Net change in cash, cash equivalents and restricted cash			107,338				2,061				4,685				45,457				30,760
Cash, cash equivalents and restricted cash at beginning of period			174,723				172,662				167,977				122,520				91,760
Cash, cash equivalents and restricted cash at end of period		$	282,061			$	174,723			$	172,662			$	167,977			$	122,520
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest, net of amounts capitalized		$	606			$	7,748			$	98			$	7,575			$	353
Income taxes		$	9,384			$	10,144			$	17,057			$	6,132			$	6,813
Supplemental disclosure of noncash investing activities:
Purchase of three vessels		$	27			$	12,171			$	—			$	—			$	—
Supplemental disclosure of noncash financing activities:
Repurchase of SPO acquisition warrants		$	—			$	—			$	—			$	373			$	992
Debt incurred for purchase of three vessels		$	27			$	12,171			$	—			$	—			$	—

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2023				2023				2023				2022				2022
VESSEL REVENUE BY VESSEL CLASS
Americas fleet:
PSV > 900		$	29,270			$	20,316			$	20,556			$	17,814			$	15,676
PSV < 900			28,886				19,134				17,390				16,486				16,460
AHTS > 16K			3,584				3,425				3,395				2,873				3,429
AHTS 8 - 16K			2,064				2,807				2,807				1,899				1,601
AHTS 4 - 8K			1,570				1,480				1,521				1,553				1,185
Other			4,942				3,214				2,018				1,160				771
Total			70,316				50,376				47,687				41,785				39,122
Asia Pacific fleet:
PSV > 900			20,159				9,648				9,101				6,692				10,896
PSV < 900			8,292				5,811				5,133				3,120				3,891
AHTS > 16K			3,271				2,065				1,342				3,260				3,128
AHTS 8 - 16K			5,287				5,001				5,397				4,364				4,333
AHTS 4 - 8K			1,582				8				998				1,584				1,605
Other			52				52				53				50				49
Total			38,643				22,585				22,024				19,070				23,902
Middle East fleet:
PSV > 900			1,088				1,211				1,192				1,218				2,771
PSV < 900			17,790				16,812				14,965				15,517				16,063
AHTS > 16K			1,197				1,217				2,316				2,351				2,350
AHTS 8 - 16K			3,420				4,276				4,593				4,146				3,397
AHTS 4 - 8K			11,191				8,340				7,696				7,343				6,605
Total			34,686				31,856				30,762				30,575				31,186
Europe/Mediterranean fleet:
PSV > 900			63,582				29,592				23,368				24,783				27,167
PSV < 900			10,329				7,205				5,153				7,874				7,092
AHTS > 16K			3,617				2,228				2,511				643				5,251
Other			247				270				218				182				192
Total			77,775				39,295				31,250				33,482				39,702
West Africa fleet:
PSV > 900			17,566				11,550				9,900				10,534				8,041
PSV < 900			26,396				25,419				24,835				20,494				18,249
AHTS > 16K			7,138				9,129				6,237				5,385				6,152
AHTS 8 - 16K			11,917				9,870				9,827				11,810				11,236
AHTS 4 - 8K			2,745				3,496				2,360				5,780				6,445
Other			7,888				6,747				6,298				6,191				6,212
Total			73,650				66,211				59,457				60,194				56,335
Worldwide fleet:
PSV > 900			131,665				72,317				64,117				61,041				64,551
PSV < 900			91,693				74,381				67,476				63,491				61,755
AHTS > 16K			18,807				18,064				15,801				14,512				20,310
AHTS 8 - 16K			22,688				21,954				22,624				22,219				20,567
AHTS 4 - 8K			17,088				13,324				12,575				16,260				15,840
Other			13,129				10,283				8,587				7,583				7,224
Total		$	295,070			$	210,323			$	191,180			$	185,106			$	190,247

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2023				2023				2023				2022				2022
AVERAGE NUMBER OF VESSELS:
Americas fleet:
PSV > 900			12				10				10				10				11
PSV < 900			18				15				15				16				17
AHTS > 16K			2				2				2				2				2
AHTS 8 - 16K			2				2				2				2				1
AHTS 4 - 8K			2				2				2				2				2
Other			2				2				1				1				1
Total			38				33				32				33				34
Stacked vessels			(1	)			(1	)			(1	)			(2	)			(3	)
Active vessels			37				32				31				31				31
Asia Pacific fleet:
PSV > 900			8				6				5				5				5
PSV < 900			4				2				2				2				2
AHTS > 16K			2				2				1				2				2
AHTS 8 - 16K			3				3				3				3				3
AHTS 4 - 8K			1				1				2				3				4
Other			—				—				1				1				1
Total			18				14				14				16				17
Stacked vessels			—				—				(1	)			(2	)			(2	)
Active vessels			18				14				13				14				15
Middle East fleet:
PSV > 900			1				1				1				2				2
PSV < 900			20				20				21				20				20
AHTS > 16K			1				1				2				2				2
AHTS 8 - 16K			5				5				5				5				5
AHTS 4 - 8K			18				17				14				14				13
Total			45				44				43				43				42
Stacked vessels			—				—				—				—				—
Active vessels			45				44				43				43				42
Europe/Mediterranean fleet:
PSV > 900			40				19				20				20				19
PSV < 900			8				6				6				6				6
AHTS > 16K			2				1				1				1				1
Total			50				26				27				27				26
Stacked vessels			—				—				—				—				—
Active vessels			50				26				27				27				26
West Africa fleet:
PSV > 900			9				7				7				6				6
PSV < 900			19				18				18				18				18
AHTS > 16K			4				5				5				4				4
AHTS 8 - 16K			11				11				11				11				12
AHTS 4 - 8K			5				6				8				8				8
Other			24				23				25				28				28
Total			72				70				74				75				76
Stacked vessels			(3	)			(5	)			(8	)			(10	)			(9	)
Active vessels			69				65				66				65				67
Worldwide fleet:
PSV > 900			70				43				43				43				43
PSV < 900			69				61				62				62				63
AHTS > 16K			11				11				11				11				11
AHTS 8 - 16K			21				21				21				21				21
AHTS 4 - 8K			26				26				26				27				27
Other			26				25				27				30				30
Total			223				187				190				194				195
Stacked vessels			(4	)			(6	)			(10	)			(14	)			(14	)
Active vessels			219				181				180				180				181
Total active			219				181				180				180				181
Total stacked			4				6				10				14				14
Total joint venture			—				—				—				1				1
Total			223				187				190				195				196

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2023				2023				2023				2022				2022
AVAILABLE DAYS - TOTAL FLEET:
Americas fleet:
PSV > 900			1,095				910				907				922				1,012
PSV < 900			1,730				1,365				1,359				1,499				1,564
AHTS > 16K			184				182				180				184				184
AHTS 8 - 16K			184				182				180				184				122
AHTS 4 - 8K			184				182				180				184				184
Other			184				182				121				92				92
Total			3,561				3,003				2,927				3,065				3,158
Asia Pacific fleet:
PSV > 900			726				559				481				460				460
PSV < 900			358				182				180				184				184
AHTS > 16K			184				182				90				184				184
AHTS 8 - 16K			276				273				270				276				276
AHTS 4 - 8K			92				91				180				292				368
Other			—				—				48				92				92
Total			1,636				1,287				1,249				1,488				1,564
Middle East fleet:
PSV > 900			92				91				90				92				123
PSV < 900			1,840				1,820				1,842				1,840				1,840
AHTS > 16K			92				91				180				184				184
AHTS 8 - 16K			460				455				450				460				465
AHTS 4 - 8K			1,640				1,556				1,291				1,288				1,217
Total			4,124				4,013				3,853				3,864				3,829
Europe/Mediterranean fleet:
PSV > 900			3,672				1,729				1,762				1,838				1,748
PSV < 900			727				546				540				552				552
AHTS > 16K			184				139				90				92				92
Total			4,583				2,414				2,392				2,482				2,392
West Africa fleet:
PSV > 900			819				637				630				644				613
PSV < 900			1,744				1,638				1,620				1,656				1,656
AHTS > 16K			368				407				450				368				368
AHTS 8 - 16K			1,012				1,001				990				1,012				1,074
AHTS 4 - 8K			476				546				720				736				736
Other			2,184				2,099				2,256				2,545				2,582
Total			6,603				6,328				6,666				6,961				7,029
Worldwide fleet:
PSV > 900			6,404				3,926				3,870				3,956				3,956
PSV < 900			6,399				5,551				5,541				5,731				5,796
AHTS > 16K			1,012				1,001				990				1,012				1,012
AHTS 8 - 16K			1,932				1,911				1,890				1,932				1,937
AHTS 4 - 8K			2,392				2,375				2,371				2,500				2,505
Other			2,368				2,281				2,425				2,729				2,766
Total			20,507				17,045				17,087				17,860				17,972

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2023				2023				2023				2022				2022
OUT-OF-SERVICE - STACKED DAYS:
Americas fleet:
PSV < 900			92				91				99				211				276
Total			92				91				99				211				276
Asia Pacific fleet:
AHTS 4 - 8K			—				—				—				54				61
Other			—				—				48				92				92
Total			—				—				48				146				153
West Africa fleet:
AHTS 4 - 8K			184				182				180				158				92
Other			103				265				540				797				747
Total			287				447				720				955				839
Worldwide fleet:
PSV < 900			92				91				99				211				276
AHTS 4 - 8K			184				182				180				212				153
Other			103				265				588				889				839
Total			379				538				867				1,312				1,268

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2023				2023				2023				2022				2022
AVAILABLE DAYS - ACTIVE FLEET:
Americas fleet:
PSV > 900			1,095				910				907				922				1,012
PSV < 900			1,638				1,274				1,260				1,288				1,288
AHTS > 16K			184				182				180				184				184
AHTS 8 - 16K			184				182				180				184				122
AHTS 4 - 8K			184				182				180				184				184
Other			184				182				121				92				92
Total			3,469				2,912				2,828				2,854				2,882
Asia Pacific fleet:
PSV > 900			726				559				481				460				460
PSV < 900			358				182				180				184				184
AHTS > 16K			184				182				90				184				184
AHTS 8 - 16K			276				273				270				276				276
AHTS 4 - 8K			92				91				180				238				307
Total			1,636				1,287				1,201				1,342				1,411
Middle East fleet:
PSV > 900			92				91				90				92				123
PSV < 900			1,840				1,820				1,842				1,840				1,840
AHTS > 16K			92				91				180				184				184
AHTS 8 - 16K			460				455				450				460				465
AHTS 4 - 8K			1,640				1,556				1,291				1,288				1,217
Total			4,124				4,013				3,853				3,864				3,829
Europe/Mediterranean fleet:
PSV > 900			3,672				1,729				1,762				1,838				1,748
PSV < 900			727				546				540				552				552
AHTS > 16K			184				139				90				92				92
Total			4,583				2,414				2,392				2,482				2,392
West Africa fleet:
PSV > 900			819				637				630				644				613
PSV < 900			1,744				1,638				1,620				1,656				1,656
AHTS > 16K			368				407				450				368				368
AHTS 8 - 16K			1,012				1,001				990				1,012				1,074
AHTS 4 - 8K			292				364				540				578				644
Other			2,081				1,834				1,716				1,748				1,835
Total			6,316				5,881				5,946				6,006				6,190
Worldwide fleet:
PSV > 900			6,404				3,926				3,870				3,956				3,956
PSV < 900			6,307				5,460				5,442				5,520				5,520
AHTS > 16K			1,012				1,001				990				1,012				1,012
AHTS 8 - 16K			1,932				1,911				1,890				1,932				1,937
AHTS 4 - 8K			2,208				2,193				2,191				2,288				2,352
Other			2,265				2,016				1,837				1,840				1,927
Total			20,128				16,507				16,220				16,548				16,704

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA
		Three Months Ended
	September 30,					June 30,				March 31,				December 31,				September 30,
		2023				2023				2023				2022				2022
UTILIZATION - TOTAL FLEET:
Americas fleet:
PSV > 900			84.5	%			78.5	%			84.2	%			82.6	%			74.6	%
PSV < 900			85.7				83.9				79.8				68.1				69.3
AHTS > 16K			54.7				50.0				50.0				48.2				92.4
AHTS 8 - 16K			65.4				100.0				100.0				76.8				89.5
AHTS 4 - 8K			97.8				93.7				96.4				99.2				74.4
Other			100.0				100.0				97.5				100.0				66.5
Total			84.1	%			82.8	%			82.3	%			74.6	%			73.3	%
Asia Pacific fleet:
PSV > 900			97.3	%			71.1	%			70.8	%			62.6	%			94.5	%
PSV < 900			99.0				100.0				90.6				78.4				100.0
AHTS > 16K			66.7				60.7				78.1				90.8				89.9
AHTS 8 - 16K			78.9				85.0				79.8				85.4				97.2
AHTS 4 - 8K			100.0				10.4				80.3				79.5				64.5
Total			91.3	%			72.4	%			74.8	%			71.7	%			82.5	%
Middle East fleet:
PSV > 900			90.2	%			100.0	%			100.0	%			100.0	%			93.6	%
PSV < 900			82.8				81.6				74.4				78.3				84.1
AHTS > 16K			100.0				100.0				100.0				100.0				94.7
AHTS 8 - 16K			69.0				87.0				96.0				84.8				68.5
AHTS 4 - 8K			77.7				63.4				85.7				86.3				84.9
Total			79.8	%			76.0	%			82.5	%			83.3	%			83.3	%
Europe/Mediterranean fleet:
PSV > 900			90.3	%			91.2	%			82.7	%			87.1	%			95.8	%
PSV < 900			87.7				79.0				85.4				93.8				96.4
AHTS > 16K			63.3				43.4				84.1				65.5				76.9
Total			88.8	%			85.7	%			83.4	%			87.8	%			95.2	%
West Africa fleet:
PSV > 900			88.5	%			83.1	%			83.0	%			85.7	%			70.9	%
PSV < 900			85.1				91.1				95.3				89.9				86.6
AHTS > 16K			77.0				92.9				73.5				89.4				100.0
AHTS 8 - 16K			79.5				79.6				79.8				91.1				85.7
AHTS 4 - 8K			58.5				62.9				32.4				62.1				82.6
Other			50.0				49.4				50.3				45.4				44.4
Total			70.7	%			72.3	%			68.4	%			70.5	%			69.9	%
Worldwide fleet:
PSV > 900			89.9	%			84.3	%			82.0	%			83.3	%			86.3	%
PSV < 900			85.7				85.3				83.4				80.5				82.5
AHTS > 16K			70.7				73.0				75.4				81.9				93.7
AHTS 8 - 16K			75.6				84.1				85.6				87.4				83.4
AHTS 4 - 8K			76.3				63.5				69.9				79.4				80.5
Other			53.9				53.4				51.7				45.7				43.7
Total			80.5	%			76.9	%			76.5	%			76.5	%			77.8	%

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA
		Three Months Ended
	September 30,					June 30,				March 31,				December 31,				September 30,
		2023				2023				2023				2022				2022
UTILIZATION - ACTIVE FLEET:
Americas fleet:
PSV > 900			84.5	%			78.5	%			84.2	%			82.6	%			74.6	%
PSV < 900			90.5				89.9				86.1				79.3				84.1
AHTS > 16K			54.7				50.0				50.0				48.2				92.4
AHTS 8 - 16K			65.4				100.0				100.0				76.8				89.5
AHTS 4 - 8K			97.8				93.7				96.4				99.2				74.4
Other			100.0				100.0				97.5				100.0				66.5
Total			86.3	%			85.4	%			85.2	%			80.1	%			80.3	%
Asia Pacific fleet:
PSV > 900			97.3	%			71.1	%			70.8	%			62.6	%			94.5	%
PSV < 900			99.0				100.0				90.6				78.4				100.0
AHTS > 16K			66.7				60.7				78.1				90.8				89.9
AHTS 8 - 16K			78.9				85.0				79.8				85.4				97.2
AHTS 4 - 8K			100.0				10.4				80.3				97.4				77.4
Total			91.3	%			72.4	%			77.8	%			79.5	%			91.4	%
Middle East fleet:
PSV > 900			90.2	%			100.0	%			100.0	%			100.0	%			93.6	%
PSV < 900			82.8				81.6				74.4				78.3				84.1
AHTS > 16K			100.0				100.0				100.0				100.0				94.7
AHTS 8 - 16K			69.0				87.0				96.0				84.8				68.5
AHTS 4 - 8K			77.7				63.4				85.7				86.3				84.9
Total			79.8	%			76.0	%			82.5	%			83.3	%			83.3	%
Europe/Mediterranean fleet:
PSV > 900			90.3	%			91.2	%			82.7	%			87.1	%			95.8	%
PSV < 900			87.7				79.0				85.4				93.8				96.4
AHTS > 16K			63.3				43.4				84.1				65.5				76.9
Total			88.8	%			85.7	%			83.4	%			87.8	%			95.2	%
West Africa fleet:
PSV > 900			88.5	%			83.1	%			83.0	%			85.7	%			70.9	%
PSV < 900			85.1				91.1				95.3				89.9				86.6
AHTS > 16K			77.0				92.9				73.5				89.4				100.0
AHTS 8 - 16K			79.5				79.6				79.8				91.1				85.7
AHTS 4 - 8K			95.4				94.3				43.2				79.1				94.5
Other			52.5				56.5				66.2				66.1				62.5
Total			73.9	%			77.8	%			76.6	%			81.7	%			79.4	%
Worldwide fleet:
PSV > 900			89.9	%			84.3	%			82.0	%			83.3	%			86.3	%
PSV < 900			86.9				86.7				84.9				83.6				86.6
AHTS > 16K			70.7				73.0				75.4				81.9				93.7
AHTS 8 - 16K			75.6				84.1				85.6				87.4				83.4
AHTS 4 - 8K			82.6				68.8				75.7				86.7				85.7
Other			56.4				60.4				68.2				67.8				62.7
Total			82.1	%			79.4	%			80.6	%			82.5	%			83.7	%

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2023				2023				2023				2022				2022
AVERAGE VESSEL DAY RATES: (A)
Americas fleet:
PSV > 900		$	31,648			$	28,446			$	26,930			$	23,401			$	20,775
PSV < 900			19,479				16,702				16,037				16,146				15,197
AHTS > 16K			35,598				37,640				37,720				32,368				20,175
AHTS 8 - 16K			17,157				15,421				15,593				13,431				14,668
AHTS 4 - 8K			8,717				8,678				8,764				8,511				8,654
Other			26,857				17,658				17,110				12,611				12,616
Total			23,495				20,269				19,794				18,271				16,901
Asia Pacific fleet:
PSV > 900			28,525				24,276				26,723				23,237				25,072
PSV < 900			23,380				31,927				31,488				21,627				21,148
AHTS > 16K			26,649				18,690				19,095				19,519				18,902
AHTS 8 - 16K			24,275				21,561				25,049				18,509				16,144
AHTS 4 - 8K			17,197				946				6,903				6,822				6,759
Total			25,867				24,250				23,582				17,868				18,530
Middle East fleet:
PSV > 900			13,112				13,304				13,251				13,234				24,061
PSV < 900			11,677				11,320				10,926				10,768				10,378
AHTS > 16K			13,004				13,378				12,868				12,777				13,487
AHTS 8 - 16K			10,771				10,804				10,632				10,627				10,666
AHTS 4 - 8K			8,787				8,460				6,953				6,604				6,396
Total			10,544				10,449				9,679				9,498				9,781
Europe/Mediterranean fleet:
PSV > 900			19,170				18,757				16,031				15,476				16,229
PSV < 900			16,197				16,709				11,177				15,212				13,323
AHTS > 16K			31,048				36,913				33,164				10,682				74,231
Total			19,105				18,990				15,669				15,364				17,436
West Africa fleet:
PSV > 900			24,220				21,815				18,931				19,096				18,502
PSV < 900			17,781				17,040				16,080				13,758				12,721
AHTS > 16K			25,192				24,154				18,863				16,367				16,719
AHTS 8 - 16K			14,804				12,382				12,433				12,809				12,212
AHTS 4 - 8K			9,858				10,178				10,113				12,637				10,595
Other			7,217				6,511				5,548				5,359				5,415
Total			15,772				14,469				13,047				12,272				11,467
Worldwide fleet:
PSV > 900			22,872				21,850				20,198				18,529				18,914
PSV < 900			16,722				15,706				14,597				13,762				12,915
AHTS > 16K			26,293				24,719				21,163				17,505				21,415
AHTS 8 - 16K			15,533				13,662				13,984				13,153				12,726
AHTS 4 - 8K			9,368				8,828				7,583				8,196				7,859
Other			10,281				8,441				6,852				6,080				5,979
Total		$	17,865			$	16,042			$	14,624			$	13,554			$	13,606
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,
		2023				2023				2023				2022				2022
Americas
Vessel revenues		$	70,717			$	50,376			$	47,687			$	41,785			$	39,122
Vessel operating costs:
Crew costs			26,848				18,033				17,402				16,486				16,080
Repair and maintenance			5,588				3,973				3,888				3,619				3,594
Insurance			476				479				410				410				414
Fuel, lube and supplies			4,386				2,549				2,999				2,387				2,557
Other			5,924				4,564				3,572				5,102				3,090
Total vessel operating costs			43,222				29,598				28,271				28,004				25,735
Vessel operating margin ($)			27,495				20,778				19,416				13,781				13,387
Vessel operating margin (%)			38.9	%			41.2	%			40.7	%			33.0	%			34.2	%
Americas - Select operating statistics
Average vessels - Total fleet			38				33				32				33				34
Utilization - Total fleet			84.1	%			82.8	%			82.3	%			74.6	%			73.3	%
Average vessels - Active fleet			37				32				31				31				31
Utilization - Active fleet			86.3	%			85.4	%			85.2	%			80.1	%			80.3	%
Average day rates		$	23,495			$	20,269			$	19,794			$	18,271			$	16,901
Vessels commencing drydocks			3				4				2				2				4
Deferred drydocking and survey costs - beginning balance		$	29,769			$	27,832			$	21,720			$	21,772			$	19,208
Cash paid for deferred drydocking and survey costs			4,658				5,867				8,218				4,389				5,678
Amortization of deferred drydocking and survey costs			(3,727	)			(2,626	)			(3,417	)			(3,025	)			(2,932	)
Disposals, intersegment transfers and other			(1,016	)			(1,304	)			1,311				(1,416	)			(182	)
Deferred drydocking and survey costs - ending balance		$	29,684			$	29,769			$	27,832			$	21,720			$	21,772

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2023				2023				2023				2022				2022
Asia Pacific
Vessel revenues		$	38,994			$	22,585			$	22,024			$	19,070			$	23,902
Vessel operating costs:
Crew costs			12,390				7,062				7,311				9,876				10,631
Repair and maintenance			2,969				1,517				1,749				901				947
Insurance			183				219				123				183				189
Fuel, lube and supplies			909				1,521				1,630				1,299				1,145
Other			2,380				1,648				1,678				1,574				1,909
Total vessel operating costs			18,831				11,967				12,491				13,833				14,821
Vessel operating margin ($)			20,163				10,618				9,533				5,237				9,081
Vessel operating margin (%)			51.7	%			47.0	%			43.3	%			27.5	%			38.0	%
Asia Pacific - Select operating statistics
Average vessels - Total fleet			18				14				14				16				17
Utilization - Total fleet			91.3	%			72.4	%			74.8	%			71.7	%			82.5	%
Average vessels - Active fleet			18				14				13				14				15
Utilization - Active fleet			91.3	%			72.4	%			77.8	%			79.5	%			91.4	%
Average day rates		$	25,867			$	24,250			$	23,582			$	17,868			$	18,530
Vessels commencing drydocks			—				—				1				2				—
Deferred drydocking and survey costs - beginning balance		$	2,128			$	2,525			$	553			$	979			$	852
Cash paid for deferred drydocking and survey costs			84				(4	)			2,368				156				702
Amortization of deferred drydocking and survey costs			(637	)			(393	)			(282	)			(117	)			(139	)
Disposals, intersegment transfers and other			2,020				—				(114	)			(465	)			(436	)
Deferred drydocking and survey costs - ending balance		$	3,595			$	2,128			$	2,525			$	553			$	979

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2023				2023				2023				2022				2022
Middle East
Vessel revenues		$	34,685			$	31,856			$	30,762			$	30,575			$	31,186
Vessel operating costs:
Crew costs			13,914				13,170				12,616				12,472				12,814
Repair and maintenance			4,828				3,779				3,475				3,216				3,441
Insurance			385				465				433				384				406
Fuel, lube and supplies			3,142				3,470				2,870				2,991				3,281
Other			4,796				3,756				3,669				2,505				1,804
Total vessel operating costs			27,065				24,640				23,063				21,568				21,746
Vessel operating margin ($)			7,620				7,216				7,699				9,007				9,440
Vessel operating margin (%)			22.0	%			22.7	%			25.0	%			29.5	%			30.3	%
Middle East - Select operating statistics
Average vessels - Total fleet			45				44				43				43				42
Utilization - Total fleet			79.8	%			76.0	%			82.5	%			83.3	%			83.3	%
Average vessels - Active fleet			45				44				43				43				42
Utilization - Active fleet			79.8	%			76.0	%			82.5	%			83.3	%			83.3	%
Average day rates		$	10,544			$	10,449			$	9,679			$	9,498			$	9,781
Vessels commencing drydocks			4				7				5				5				5
Deferred drydocking and survey costs - beginning balance		$	22,717			$	20,677			$	15,062			$	14,993			$	14,980
Cash paid for deferred drydocking and survey costs			3,234				4,262				7,787				1,930				2,345
Amortization of deferred drydocking and survey costs			(2,776	)			(3,778	)			(1,913	)			(2,323	)			(2,346	)
Disposals, intersegment transfers and other			(2,022	)			1,556				(259	)			462				14
Deferred drydocking and survey costs - ending balance		$	21,153			$	22,717			$	20,677			$	15,062			$	14,993

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2023				2023				2023				2022				2022
Europe/Mediterranean
Vessel revenues		$	78,929			$	39,295			$	31,250			$	33,482			$	39,702
Vessel operating costs:
Crew costs			26,632				13,406				12,727				13,010				12,347
Repair and maintenance			5,342				2,900				2,706				3,067				1,652
Insurance			689				354				384				386				440
Fuel, lube and supplies			4,033				2,363				1,584				2,051				1,158
Other			5,376				2,292				2,371				1,762				2,170
Total vessel operating costs			42,072				21,315				19,772				20,276				17,767
Vessel operating margin ($)			36,857				17,980				11,478				13,206				21,935
Vessel operating margin (%)			46.7	%			45.8	%			36.7	%			39.4	%			55.2	%
Europe/Mediterranean - Select operating statistics
Average vessels - Total fleet			50				26				27				27				26
Utilization - Total fleet			88.8	%			85.7	%			83.4	%			87.8	%			95.2	%
Average vessels - Active fleet			50				26				27				27				26
Utilization - Active fleet			88.8	%			85.7	%			83.4	%			87.8	%			95.2	%
Average day rates		$	19,105			$	18,990			$	15,669			$	15,364			$	17,436
Vessels commencing drydocks			5				4				4				3				1
Deferred drydocking and survey costs - beginning balance		$	11,705			$	11,363			$	9,566			$	8,588			$	9,231
Cash paid for deferred drydocking and survey costs			6,733				2,217				5,128				1,175				315
Amortization of deferred drydocking and survey costs			(3,201	)			(1,875	)			(1,739	)			(1,523	)			(1,244	)
Disposals, intersegment transfers and other			1,019				—				(1,592	)			1,326				286
Deferred drydocking and survey costs - ending balance		$	16,256			$	11,705			$	11,363			$	9,566			$	8,588

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2023				2023				2023				2022				2022
West Africa
Vessel revenues		$	73,650			$	66,211			$	59,457			$	60,194			$	56,335
Vessel operating costs:
Crew costs			17,502				16,336				16,587				17,855				19,317
Repair and maintenance			4,868				4,665				4,834				3,971				3,910
Insurance			626				651				655				664				539
Fuel, lube and supplies			5,300				4,055				4,472				4,113				4,150
Other			4,753				5,037				5,314				5,212				5,052
Total vessel operating costs			33,049				30,744				31,862				31,815				32,968
Vessel operating margin ($)			40,601				35,467				27,595				28,379				23,367
Vessel operating margin (%)			55.1	%			53.6	%			46.4	%			47.1	%			41.5	%
West Africa - Select operating statistics
Average vessels - Total fleet			72				70				74				75				76
Utilization - Total fleet			70.7	%			72.3	%			68.4	%			70.5	%			69.9	%
Average vessels - Active fleet			69				65				66				65				67
Utilization - Active fleet			73.9	%			77.8	%			76.6	%			81.7	%			79.4	%
Average day rates		$	15,772			$	14,469			$	13,047			$	12,272			$	11,467
Vessels commencing drydocks			7				4				6				2				5
Deferred drydocking and survey costs - beginning balance		$	26,162			$	20,390			$	14,179			$	11,545			$	9,390
Cash paid for deferred drydocking and survey costs			5,909				9,024				7,824				4,467				3,780
Amortization of deferred drydocking and survey costs			(3,544	)			(3,000	)			(2,267	)			(1,909	)			(1,943	)
Disposals, intersegment transfers and other			—				(252	)			654				76				318
Deferred drydocking and survey costs - ending balance		$	28,527			$	26,162			$	20,390			$	14,179			$	11,545

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2023				2023				2023				2022				2022
Worldwide
Vessel revenues		$	296,975			$	210,323			$	191,180			$	185,106			$	190,247
Vessel operating costs:
Crew costs			97,286				68,007				66,643				69,699				71,189
Repair and maintenance			23,595				16,834				16,652				14,774				13,544
Insurance			2,359				2,168				2,005				2,027				1,988
Fuel, lube and supplies			17,770				13,958				13,555				12,841				12,291
Other			23,229				17,297				16,604				16,155				14,025
Total vessel operating costs			164,239				118,264				115,459				115,496				113,037
Vessel operating margin ($)			132,736				92,059				75,721				69,610				77,210
Vessel operating margin (%)			44.7	%			43.8	%			39.6	%			37.6	%			40.6	%
Worldwide - Select operating statistics
Average vessels - Total fleet			223				187				190				194				195
Utilization - Total fleet			80.5	%			76.9	%			76.5	%			76.5	%			77.8	%
Average vessels - Active fleet			219				181				180				180				181
Utilization - Active fleet			82.1	%			79.4	%			80.6	%			82.5	%			83.7	%
Average day rates		$	17,865			$	16,042			$	14,624			$	13,554			$	13,606
Vessels commencing drydocks			19				19				18				14				15
Deferred drydocking and survey costs - beginning balance		$	92,481			$	82,787			$	61,080			$	57,877			$	53,661
Cash paid for deferred drydocking and survey costs			20,618				21,366				31,325				12,117				12,820
Amortization of deferred drydocking and survey costs			(13,885	)			(11,672	)			(9,618	)			(8,897	)			(8,604	)
Disposals, intersegment transfers and other			1				—				—				(17	)			—
Deferred drydocking and survey costs - ending balance		$	99,215			$	92,481			$	82,787			$	61,080			$	57,877

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
		2023				2023				2023				2022				2022
Net income (loss)		$	25,549			$	21,928			$	10,816			$	10,182			$	4,910
Interest and other debt costs			19,288				4,731				4,190				4,339				4,391
Income tax expense			9,260				11,284				11,971				1,697				6,352
Depreciation			43,845				21,096				21,048				20,983				22,252
Amortization of deferred drydock and survey costs			13,885				11,672				9,618				8,898				8,604
Amortization of below market contracts			(1,906	)			—				—				—				—
EBITDA (A), (B), (C)			109,921				70,711				57,643				46,099				46,509
Indemnification assets non-cash charge			1,184				—				—				—				—
Long-lived asset impairment and other			—				—				—				—				1,214
Acquisition, restructuring and integration related costs			6,079				1,242				1,426				5,150				4,332
Adjusted EBITDA (A), (B), (C)		$	117,184			$	71,953			$	59,069			$	51,249			$	52,055
Note (A): EBITDA excludes interest and other debt costs, income tax expense, depreciation and amortization of deferred drydock and below market contracts. Additionally, Adjusted EBITDA excludes indemnification assets non-cash charge included in interest income and other, impairment charges, and acquisition, restructuring and integration related costs.   Note (B): EBITDA and Adjusted EBITDA for the three months ended September 30, 2023, and for each of the prior four quarters includes non-cash, stock-based compensation expense of $2,496, $2,648, $2,103, $2,028 and $1,923 respectively.   Note (C): EBITDA and Adjusted EBITDA for the three months ended September 30, 2023, and for each of the prior four quarters includes foreign exchange gain (losses) of $(2,149), $(3,819), $2,348, $2,105 and $(3,997) 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,
		2023				2023				2023				2022				2022
Net cash provided by operating activities (A)		$	34,939			$	9,741			$	12,794			$	45,340			$	28,113
Cash interest expense			606				7,748				98				7,575				353
Interest income and other			(568	)			(2,790	)			(130	)			(981	)			(581	)
Indemnification assets charge			(1,184	)			—				—				—				—
Additions to property and equipment			(5,702	)			(8,849	)			(8,651	)			(4,929	)			(6,328	)
Acquisitions			(594,191	)			—				—				—				8,785
Expansion capital			594,252				2,493				109				1,240				(8,441	)
Free cash flow before proceeds from asset sales			28,152				8,343				4,220				48,245				21,901
Proceeds from asset sales			945				2,943				5,716				5,093				312
Free cash flow		$	29,097			$	11,286			$	9,936			$	53,338			$	22,213

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 excludes indemnification assets charge included in interest income and other. 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,
		2023				2023				2023				2022				2022
Cash provided by (used in) changes in assets and liabilities, excluding drydock payments		$	(29,286	)		$	(23,447	)		$	2,295			$	16,018			$	1,913
Cash paid for deferred drydock and survey costs			(20,618	)			(21,366	)			(31,325	)			(12,117	)			(12,820	)
Total sources (uses) of cash for changes in assets and liabilities		$	(49,904	)		$	(44,813	)		$	(29,030	)		$	3,901			$	(10,907	)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231102513767/en/

Tidewater Inc.

West Gotcher

Vice President,

Finance and Investor Relations

+1.713.470.5285

Source: Tidewater Inc.

FAQ

What was Tidewater's revenue for Q3 2023?

Tidewater's revenue for Q3 2023 was $299.3 million.

What was the increase in average day rate compared to the previous quarter?

The average day rate increased by $1,823 to $17,865 per day.

What was Tidewater's net income for Q3 2023?

Tidewater's net income for Q3 2023 was $26.2 million.

How many recently acquired PSVs did Tidewater integrate during the quarter?

Tidewater integrated 32 of the 37 recently acquired PSVs from Solstad Offshore.

What is Tidewater's revenue guidance for 2024?

Tidewater initiated revenue guidance of $1.40 to $1.45 billion for 2024.

What is Tidewater's gross margin guidance for 2024?

Tidewater initiated gross margin guidance of 52% for 2024.

What did Tidewater announce regarding share repurchase?

Tidewater announced a share repurchase authorization for the maximum permissible amount under existing debt agreements.