Tidewater Reports Results for the Three and Six Months Ended June 30, 2022

Rhea-AI Summary

Tidewater Inc. (NYSE:TDW) reported significant financial improvements for Q2 2022, driven by the acquisition of Swire Pacific Offshore. Revenue surged to $163.4 million, up from $90.0 million year-over-year. Adjusted EBITDA rose from $8.7 million to $39.1 million, while average day rates increased by 17% to $12,544. Despite net losses of $25.6 million for Q2, operational metrics showed strength with vessel utilization at 75.5%. The company anticipates continued growth and expects to achieve cost synergies of $45.0 million.

Positive

• Revenue increased to $163.4 million, up 81% year-over-year.
• Adjusted EBITDA reached $39.1 million, compared to $8.7 million in Q2 2021.
• Average day rate improved by 17% to $12,544, the highest since Q3 2016.
• Vessel level cash margin increased to 38.2% from 27.4%.
• Global fleet utilization rose significantly to 75.5%.
• Acquisition of Swire Pacific Offshore contributed $43.2 million in revenue.

Negative

• Net losses of $25.6 million in Q2, although improved from $29.5 million in Q2 2021.
• Incurred merger and severance expenses totaling $7.3 million for the quarter.

• Completed Acquisition of Swire Pacific Offshore
• Adjusted EBITDA Increased From $8.7 million to $39.1 million Compared to the Second Quarter of 2021
• Average Day Rate Increases to $12,544; Up 17% sequentially; Highest since Q3 2016
• Vessel Level Cash Margin Increased From 27.4% to 38.2% and Global Fleet Utilization Increased From 57.0% to 75.5% Compared to the Second Quarter of 2021
• Average Active Vessels Increased From 118 to 172 Compared to the Second Quarter of 2021, Inclusive of the Swire Pacific Offshore Fleet

HOUSTON--(BUSINESS WIRE)-- Tidewater Inc. (NYSE:TDW) announced today revenue for the three and six months ended June 30, 2022 of $163.4 million and $269.2 million, respectively, compared with $90.0 million and $173.5 million, respectively, for the three and six months ended June 30, 2021. Tidewater's net losses for the three and six months ended June 30, 2022, were $25.6 million ($0.61 per common share) and $37.7 million ($0.91 per common share), respectively, compared with $29.5 million ($0.72 per common share) and $64.8 million ($1.59 per common share), respectively, for the three and six months ended June 30, 2021. Included in the net losses for the three and six months ended June 30, 2022 were merger and severance expenses of $7.3 and $9.6 million, respectively; and loss on warrants of $14.2 million for both periods. Included in the net losses for the six months ended June 30, 2022 were long-lived asset impairment credit and gain on bargain purchase of $1.8 million. Excluding these items, we would have reported a net loss for the three and six months ended June 30, 2022 of $4.1 million ($0.10 per common share) and $15.7 million ($0.38 per common share), respectively. Included in the net losses for the three and six months ended June 30, 2021 were severance expenses of $0.8 and $0.9 million, respectively; and a credit loss impairment credit of $1.0 million for both periods. Excluding these items, we would have reported a net loss for the three and six months ended June 30, 2021 of $29.7 million ($0.73 per common share) and $64.9 million ($1.59 per common share), respectively.

Quintin Kneen, Tidewater’s President and Chief Executive Officer, commented, “We believe the second quarter of 2022 marks the inflection point in the industry that we have long awaited and is now evident in our financial performance. Revenue, gross margin, average day rate and utilization all improved meaningfully during the second quarter as the building momentum in offshore vessel activity reached critical mass. The second quarter results reflect the impact of the Swire Pacific Offshore (SPO) acquisition, necessarily showing a large jump in revenue and vessels worked, but when viewing the quarter on relative metrics, the improvement is clear. The average day rate improved by nearly $1,900 per day sequentially, which is in excess of the improvement we would typically expect to realize over the course of an entire year in a normal market upcycle. Vessel level cash margin improved to 38%, up approximately four percentage points and continuing to meaningfully outperform the 30% target we have discussed in recent quarters. These improvements during the quarter, particularly the move in day rates, speak to continued demand growth as offshore activity continues to increase and as the vessel supply fundamentals continue to work in our favor given the shortage of available vessels on the market today. We expect activity to continue to improve throughout the remainder of 2022 with another likely step-up in 2023.

“As previously mentioned, we closed on the SPO acquisition on April 22, 2022. Post-closing of the transaction, the legacy SPO fleet contributed approximately $43.2 million of revenue during the second quarter and generated a vessel level cash margin in line with the total fleet vessel level cash margin of 38%. The legacy SPO business incurred approximately $3.9 million of general and administrative expense during the second quarter, down meaningfully from the pre-close run rate as we achieved some early successes in reducing general and administrative expenses as we continue to target $20.0 million in annual general and administrative costs synergies. Overall, we remain confident in our ability to realize total annual cost synergies of $45.0 million, including $25.0 million in annual synergies from operating expenses.

"While there are a variety of macroeconomic factors driving recent market volatility, the current commercial environment for offshore vessel activity remains robust. Commodity prices remain at attractive levels, recent volatility notwithstanding, providing a compelling economic rationale for our customers to continue driving their spending plans and operational goals. The supply of capable and available vessels continues to tighten. As our vessels continue to roll off older contracts, we are taking advantage of the tight supply environment to drive day rates in a strong demand environment. To illustrate this point, during the second quarter, 24 of our vessels entered new contracts of various duration that will ultimately provide a nearly 50% aggregate uplift in day rate as compared to the previous aggregate contracted day rates. Commercial momentum for new contracts is broad-based, evident in all of our operating regions and in all of our vessel classes, with West Africa and our largest PSV class notable drivers of this improvement. We remain mindful of inflation pressures that inevitably impact our business in our commercial strategy and believe that the market tightness will allow for net pricing improvements well in-excess of the impact of any inflation we may incur.

“The various initiatives we have executed over the past several years have prepared us to reap the benefits of the rapidly improving market we are currently experiencing. Building a strong leadership team positioned us to weather market challenges and position the company to take advantage of improved market fundamentals. Optimizing the organizational cost structure positioned us to maximize margins. Streamlining the fleet positioned us to offer the highest quality vessels to the market that can command the best pricing. Addressing the balance sheet positioned us to operate with a high degree of financial flexibility. Acquiring SPO positioned us to transform the company into a global leader in offshore support vessels with additional exposure to the world’s highest growth markets.

“The combination of initiatives we have successfully executed, combined with the market dynamics we are currently experiencing, has set up Tidewater as one of the largest and most efficient OSV operators globally, and has the company poised to create significant value over the coming quarters and years. The combination of high operating leverage and low financial leverage positions Tidewater to generate significant cash returns from its operating activities and the option to further leverage those returns. We remain committed to pursuing executional excellence in all facets of our business. Moving forward, we expect to continue to drive utilization and day rates, execute on realizing continued efficiencies within the business, including our commitment to realizing the synergies associated with SPO, and to opportunistically pursue platform-enhancing, value accretive strategic transactions.

“This is an exciting time for the company, and we expect all of Tidewater’s stakeholders to benefit from the continued improvement in the business. I want to thank all of our employees, including our new employees from SPO, for their continued hard work to position Tidewater to capitalize on what looks to be the best market for offshore vessels in recent memory.”

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

Common shares outstanding			42,029,882
New Creditor Warrants (strike price $0.001 per common share)			395,401
GulfMark Creditor Warrants (strike price $0.01 per common share)			309,351
SPO acquisition warrants (strike price $0.001 per common share)			8,100,000
Total			50,834,634

Tidewater will hold a conference call to discuss results for the three and six months ending June 30, 2022 on August 5, 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 Access Code: 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 August 5, 2022 and will continue until 11:59 p.m. Central Time on September 10, 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 June 30, 2022 and December 31, 2021; the Consolidated Statements of Operations and Consolidated Statements of Equity for the three and six months ended June 30, 2022 and 2021; and the Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021. Extracts are drawn from the June 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								Six Months Ended
		June 30, 2022				June 30, 2021				June 30, 2022				June 30, 2021
Revenues:
Vessel revenues		$	162,175			$	88,514			$	266,051			$	169,507
Other operating revenues			1,272				1,439				3,125				3,950
Total revenues			163,447				89,953				269,176				173,457
Costs and expenses:
Vessel operating costs			100,257				64,263				168,768				125,283
Costs of other operating revenues			483				581				844				1,648
General and administrative			27,804				16,787				46,021				32,830
Depreciation and amortization			31,766				28,549				58,423				58,276
Long-lived asset impairment credit			—				—				(500	)			—
Affiliate credit loss impairment credit			—				(1,000	)			—				(1,000	)
Loss on asset dispositions, net			1,297				932				1,090				2,880
Total costs and expenses			161,607				110,112				274,646				219,917
Operating income (loss)			1,840				(20,159	)			(5,470	)			(46,460	)
Other income (expense):
Foreign exchange gain (loss)			(1,881	)			422				(935	)			(428	)
Equity in net earnings (losses) of unconsolidated companies			(244	)			52				(244	)			(1,797	)
Interest income and other, net			349				8				3,835				31
Loss on warrants			(14,175	)			—				(14,175	)			—
Interest and other debt costs, net			(4,284	)			(3,944	)			(8,459	)			(8,485	)
Total other expense			(20,235	)			(3,462	)			(19,978	)			(10,679	)
Loss before income taxes			(18,395	)			(23,621	)			(25,448	)			(57,139	)
Income tax expense			6,619				6,026				11,837				8,035
Net loss			(25,014	)			(29,647	)			(37,285	)			(65,174	)
Less: Net income (loss) attributable to noncontrolling interests			567				(185	)			464				(397	)
Net loss attributable to Tidewater Inc.		$	(25,581	)		$	(29,462	)		$	(37,749	)		$	(64,777	)
Basic loss per common share		$	(0.61	)		$	(0.72	)		$	(0.91	)		$	(1.59	)
Diluted loss per common share		$	(0.61	)		$	(0.72	)		$	(0.91	)		$	(1.59	)
Weighted average common shares outstanding			41,814				40,899				41,614				40,808
Adjusted weighted average common shares			41,814				40,899				41,614				40,808

TIDEWATER INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands, except share and par value data)
		June 30, 2022				December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents		$	87,981			$	149,037
Restricted cash			1,240				1,240
Trade and other receivables, less allowance for credit losses of $2,288 and $1,948 as of June 30, 2022 and 2021, respectively			189,259				86,503
Due from affiliates, less allowance for credit losses of $12,215 and $72,456 as of June 30, 2022 and 2021, respectively			—				70,134
Marine operating supplies			21,182				12,606
Assets held for sale			6,862				14,421
Prepaid expenses and other current assets			23,259				8,731
Total current assets			329,783				342,672
Net properties and equipment			838,612				688,040
Deferred drydocking and survey costs			53,661				40,734
Indemnification assets			30,269				—
Other assets			30,410				24,334
Total assets		$	1,282,735			$	1,095,780
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	30,537			$	20,788
Accrued costs and expenses			109,212				51,734
Due to affiliates			—				61,555
Other current liabilities			47,872				23,865
Total current liabilities			187,621				157,942
Long-term debt			168,279				167,885
Other liabilities and deferred credits			85,188				68,184
Commitments and contingencies
Equity:
Common stock			42				41
Additional paid-in-capital			1,554,561				1,376,494
Accumulated deficit			(715,649	)			(677,900	)
Accumulated other comprehensive loss			1,763				2,668
Total stockholders' equity			840,717				701,303
Noncontrolling interests			930				466
Total equity			841,647				701,769
Total liabilities and equity		$	1,282,735			$	1,095,780

TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (In Thousands)
		Three Months Ended								Six Months Ended
		June 30, 2022				June 30, 2021				June 30, 2022				June 30, 2021
Net loss		$	(25,014	)		$	(29,647	)		$	(37,285	)		$	(65,174	)
Other comprehensive loss:
Unrealized loss on note receivable			(846	)			—				(846	)			—
Change in liability of pension plans			138				(207	)			(59	)			(278	)
Total comprehensive loss		$	(25,722	)		$	(29,854	)		$	(38,190	)		$	(65,452	)

TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands)
		Six Months				Six Months
		Ended				Ended
		June 30, 2022				June 30, 2021
Operating activities:
Net loss		$	(37,285	)		$	(65,174	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization			40,287				36,694
Amortization of deferred drydocking and survey costs			18,136				21,582
Amortization of debt premiums and discounts			765				1,986
Provision for deferred income taxes			145				648
Loss on asset dispositions, net			1,090				2,880
Gain on bargain purchase			(1,300	)			—
Loss on debt extinguishment			—				59
Affiliate credit loss impairment credit			—				(1,000	)
Long-lived asset impairment credit			(500	)			—
Loss on warrants			14,175				—
Stock-based compensation expense			3,421				2,676
Changes in assets and liabilities, net of effects of business acquisition:
Trade and other receivables			(35,085	)			22,394
Changes in due to/from affiliate, net			(20	)			4,693
Accounts payable			8,072				(792	)
Accrued expenses			2,354				(2,074	)
Deferred drydocking and survey costs			(31,063	)			(6,771	)
Other, net			(16,419	)			(7,234	)
Net cash provided by (used in) operating activities			(33,227	)			10,567
Cash flows from investing activities:
Proceeds from sales of assets			8,163				29,560
Acquisitions, net of cash acquired			(29,525	)			—
Additions to properties and equipment			(5,380	)			(1,861	)
Net cash provided by (used in) investing activities			(26,742	)			27,699
Cash flows from financing activities:
Principal payments on long-term debt			—				(37,901	)
Debt issuance and modification costs			(371	)			(855	)
Debt extinguishment premium			—				(59	)
Tax on share-based award			(2,176	)			(758	)
Net cash used in financing activities			(2,547	)			(39,573	)
Net change in cash, cash equivalents and restricted cash			(62,516	)			(1,307	)
Cash, cash equivalents and restricted cash at beginning of period			154,276				155,225
Cash, cash equivalents and restricted cash at end of period		$	91,760			$	153,918

Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest, net of amounts capitalized		$	7,626			$	7,028
Income taxes		$	9,330			$	6,609
Supplemental disclosure of noncash investing activities:
Acquisition of SPO		$	162,648			$	—
Supplemental disclosure of noncash financing activities:
Warrants issued for SPO acquisition		$	162,648			$	—

Note: Cash, cash equivalents and restricted cash at June 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)				loss				interest				Total
Balance at March 31, 2022		$	42			$	1,376,934			$	(690,068	)		$	2,471			$	363			$	689,742
Total comprehensive income (loss)			—				—				(25,581	)			(708	)			567				(25,722	)
SPO acquisition warrants			—				176,823				—				—				—				176,823
Amortization of share-based awards			—				804				—				—				—				804
Balance at June 30, 2022		$	42			$	1,554,561			$	(715,649	)		$	1,763			$	930			$	841,647
Balance at March 31, 2021		$	41			$	1,372,846			$	(584,246	)		$	(875	)		$	945			$	788,711
Total comprehensive loss			—				—				(29,462	)			(207	)			(185	)			(29,854	)
Amortization of share-based awards			—				881				—				—				—				881
Balance at June 30, 2021		$	41			$	1,373,727			$	(613,708	)		$	(1,082	)		$	760			$	759,738

		Six 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)			—				—				(37,749	)			(905	)			464				(38,190	)
Issuance of common stock			1				(1	)			—				—				—				—
SPO acquisition warrants			—				176,823				—				—				—				176,823
Amortization of share-based awards			—				1,245				—				—				—				1,245
Balance at June 30, 2022		$	42			$	1,554,561			$	(715,649	)		$	1,763			$	930			$	841,647
Balance at December 31, 2020		$	41			$	1,371,809			$	(548,931	)		$	(804	)		$	1,157			$	823,272
Total comprehensive loss			—				—				(64,777	)			(278	)			(397	)			(65,452	)
Amortization of share-based awards			—				1,918				—				—				—				1,918
Balance at June 30, 2021		$	41			$	1,373,727			$	(613,708	)		$	(1,082	)		$	760			$	759,738

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																Six Months Ended
		June 30, 2022								June 30, 2021								June 30, 2022								June 30, 2021
Vessel revenues:
Americas		$	37,520				23	%		$	23,481				27	%		$	65,964				25	%		$	49,705				29	%
Asia Pacific			16,362				10	%			4,870				6	%			21,259				8	%			8,442				5	%
Middle East			28,396				18	%			20,758				23	%			48,614				18	%			41,600				25	%
Europe/Mediterranean			32,475				20	%			22,467				25	%			56,394				21	%			37,216				22	%
West Africa			47,422				29	%			16,938				19	%			73,820				28	%			32,544				19	%
Total vessel revenues		$	162,175				100	%		$	88,514				100	%		$	266,051				100	%		$	169,507				100	%
Vessel operating costs:
Crew costs		$	60,639				37	%		$	37,685				43	%		$	101,476				38	%		$	72,847				43	%
Repair and maintenance			13,477				8	%			9,534				11	%			22,938				9	%			18,971				11	%
Insurance			1,366				1	%			(137	)			(0	)%			2,750				1	%			486				1	%
Fuel, lube and supplies			11,521				7	%			6,541				7	%			18,597				7	%			12,401				7	%
Other			13,254				8	%			10,640				12	%			23,007				9	%			20,578				12	%
Total vessel operating costs			100,257				62	%			64,263				73	%			168,768				63	%			125,283				74	%
Vessel operating margin (A)		$	61,918				38	%		$	24,251				27	%		$	97,283				37	%		$	44,224				26	%

Note (A): Vessel operating margin equals revenues less vessel operating costs and excludes general and administrative expenses and depreciation and amortization.

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																Six Months Ended
		June 30, 2022								June 30, 2021								June 30, 2022								June 30, 2021
Vessel operating profit (loss):
Americas		$	5,930				4	%		$	(4,940	)			(5	)%		$	5,848				2	%		$	(6,591	)			(4	)%
Asia Pacific			(899	)			(1	)%			1,722				2	%			1,274				0	%			1,667				1	%
Middle East			(307	)			(0	)%			(1,456	)			(2	)%			(2,190	)			(1	)%			(3,254	)			(2	)%
Europe/Mediterranean			4,262				3	%			(1,986	)			(2	)%			1,833				1	%			(10,007	)			(6	)%
West Africa			9,270				6	%			(5,355	)			(6	)%			12,485				5	%			(12,122	)			(7	)%
Other operating profit			790				0	%			858				1	%			2,282				1	%			2,302				1	%
			19,046				12	%			(11,157	)			(12	)%			21,532				8	%			(28,005	)			(16	)%
Corporate expenses (A)			(15,909	)			(10	)%			(9,070	)			(10	)%			(26,412	)			(10	)%			(16,575	)			(10	)%
Loss on asset dispositions, net			(1,297	)			(1	)%			(932	)			(1	)%			(1,090	)			(0	)%			(2,880	)			(2	)%
Affiliate credit loss impairment credit			—				0	%			1,000				1	%			—				0	%			1,000				1	%
Long-lived asset impairments and other			—				0	%			—				0	%			500				0	%			—				0	%
Operating loss		$	1,840				1	%		$	(20,159	)			(22	)%		$	(5,470	)			(2	)%		$	(46,460	)			(27	)%

Note (A): General and administrative expenses for the three months and six months ended June 30, 2022 include stock-based compensation of $1.9 million and $3.4 million, respectively. General and administrative expenses for the three and six months ended June 30, 2021 include stock-based compensation of $1.5 million and $2.7 million, respectively. In addition, vessel operating and general and administrative costs for the three months and six months ended June 30, 2022, include $7.3 million and $9.6 million in one-time acquisition, restructuring and integration related costs, respectively. Vessel operating and general and administrative costs for the three and six months ended June 30, 2021, include $0.8 million and $0.9 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
		June 30,				March 31,				December 31,				September 30,				June 30,
		2022				2022				2021				2021				2021
Revenues:
Vessel revenues		$	162,175			$	103,876			$	100,428			$	91,634			$	88,514
Other operating revenues			1,272				1,853				4,747				767				1,439
Total revenues			163,447				105,729				105,175				92,401				89,953
Costs and expenses:
Vessel operating costs (A)			100,257				68,511				71,187				65,344				64,263
Costs of other operating revenue			483				361				228				355				581
General and administrative (A)			27,804				18,217				17,641				18,045				16,787
Depreciation and amortization			31,766				26,657				28,288				27,980				28,549
Long-lived asset impairment (credit) and other			—				(500	)			13,476				2,167				—
Affiliate credit loss impairment expense (credit)			—				—				1,400				—				(1,000	)
(Gain) loss on asset dispositions, net			1,297				(207	)			(53	)			74				932
Total operating costs and expenses			161,607				113,039				132,167				113,965				110,112
Operating loss			1,840				(7,310	)			(26,992	)			(21,564	)			(20,159	)
Other income (expense):
Foreign exchange gain (loss)			(1,881	)			946				582				(523	)			422
Equity in net earnings (losses) of unconsolidated companies			(244	)			—				(1,625	)			100				52
Interest income and other, net			349				3,486				1,426				148				8
Loss on early extinguishment of debt			—				—				(11,100	)			—				—
Loss on warrants			(14,175	)			—				—				—				—
Interest and other debt costs, net			(4,284	)			(4,175	)			(3,417	)			(3,681	)			(3,944	)
Total other expense			(20,235	)			257				(14,134	)			(3,956	)			(3,462	)
Loss before income taxes			(18,395	)			(7,053	)			(41,126	)			(25,520	)			(23,621	)
Income tax (benefit) expense			6,619				5,218				(3,047	)			887				6,026
Net loss			(25,014	)			(12,271	)			(38,079	)			(26,407	)			(29,647	)
Net loss attributable to noncontrolling interests			567				(103	)			(145	)			(149	)			(185	)
Net loss attributable to Tidewater Inc.		$	(25,581	)		$	(12,168	)		$	(37,934	)		$	(26,258	)		$	(29,462	)
Basic loss per common share		$	(0.61	)		$	(0.29	)		$	(0.92	)		$	(0.64	)		$	(0.72	)
Diluted loss per common share		$	(0.61	)		$	(0.29	)		$	(0.92	)		$	(0.64	)		$	(0.72	)
Weighted average common shares outstanding			41,814				41,412				41,280				41,132				40,899
Adjusted weighted average common shares			41,814				41,412				41,280				41,132				40,899
Vessel operating margin		$	61,918			$	35,365			$	29,241			$	26,290			$	24,251
Note (A): One-time acquisition, restructuring and integration related costs		$	7,314			$	2,305			$	221			$	112			$	795

TIDEWATER INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands)
		June 30,				March 31,				December 31,				September 30,				June 30,
		2022				2022				2021				2021				2021
ASSETS
Current assets:
Cash and cash equivalents		$	87,981			$	136,234			$	149,037			$	127,414			$	131,157
Restricted cash			1,240				4,958				1,240				24,092				20,284
Trade and other receivables, net			189,259				112,953				86,503				86,015				90,229
Due from affiliates, less allowances			—				21,191				70,134				68,217				64,922
Marine operating supplies			21,182				13,252				12,606				13,335				15,404
Assets held for sale			6,862				8,591				14,421				17,891				17,214
Prepaid expenses and other current assets			23,259				12,012				8,731				13,129				15,953
Total current assets			329,783				309,191				342,672				350,093				355,163
Net properties and equipment			838,612				677,580				688,040				709,324				731,659
Deferred drydocking and survey costs			53,661				44,362				40,734				40,510				40,372
Indemnification assets			30,269				—				—				—				—
Other assets			30,410				22,997				24,334				23,146				24,539
Total assets		$	1,282,735			$	1,054,130			$	1,095,780			$	1,123,073			$	1,151,733
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		$	30,537			$	23,696			$	20,788			$	18,042			$	16,189
Accrued costs and expenses			109,212				55,141				51,734				52,133				50,532
Due to affiliates			—				21,191				61,555				59,571				59,759
Current portion of long-term debt			—				—				—				140,995				7,355
Other current liabilities			47,872				25,471				23,865				29,139				28,825
Total current liabilities			187,621				125,499				157,942				299,880				162,660
Long-term debt			168,279				167,997				167,885				14,139				148,612
Other liabilities and deferred credits			85,188				70,892				68,184				74,442				80,723
Equity:
Common stock			42				42				41				41				41
Additional paid-in-capital			1,554,561				1,376,934				1,376,494				1,375,215				1,373,727
Accumulated deficit			(715,649	)			(690,068	)			(677,900	)			(639,966	)			(613,708	)
Accumulated other comprehensive income (loss)			1,763				2,471				2,668				(1,289	)			(1,082	)
Total stockholders' equity			840,717				689,379				701,303				734,001				758,978
Noncontrolling interests			930				363				466				611				760
Total equity			841,647				689,742				701,769				734,612				759,738
Total liabilities and equity		$	1,282,735			$	1,054,130			$	1,095,780			$	1,123,073			$	1,151,733
Supplemental information
Due from related parties, net of due to related parties:
Sonatide (Angola)		$	—			$	—			$	8,579			$	8,646			$	5,163

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2022				2022				2021				2021				2021
VESSEL REVENUE BY VESSEL CLASS
Americas fleet:
Deepwater		$	30,768			$	21,711			$	21,658			$	18,961			$	17,796
Towing-supply			4,864				5,596				5,062				4,440				4,535
Other			1,888				1,137				1,162				1,163				1,150
Total			37,520				28,444				27,882				24,564				23,481
Asia Pacific fleet:
Deepwater			11,769				3,923				3,951				3,899				3,897
Towing-supply			4,372				974				963				887				973
Other			221				—				—				—				—
Total			16,362				4,897				4,914				4,786				4,870
Middle East fleet:
Deepwater			19,744				12,599				13,360				13,393				13,367
Towing-supply			8,652				7,619				8,588				7,454				7,391
Total			28,396				20,218				21,948				20,847				20,758
Europe/Mediterranean fleet:
Deepwater			32,328				23,765				22,344				21,037				22,293
Towing-supply			—				—				—				—				11
Other			147				154				157				160				163
Total			32,475				23,919				22,501				21,197				22,467
West Africa fleet:
Deepwater			27,699				14,746				13,658				10,967				8,814
Towing-supply			14,464				6,597				5,807				5,474				5,564
Other			5,259				5,055				3,718				3,799				2,560
Total			47,422				26,398				23,183				20,240				16,938
Worldwide fleet:
Deepwater			122,308				76,744				74,971				68,257				66,167
Towing-supply			32,352				20,786				20,420				18,255				18,474
Other			7,515				6,346				5,037				5,122				3,873
Total		$	162,175			$	103,876			$	100,428			$	91,634			$	88,514

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA
		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2022				2022				2021				2021				2021
AVERAGE NUMBER OF VESSELS:
Americas fleet:
Deepwater			25				24				25				25				27
Towing-supply			8				8				8				8				8
Other			1				2				2				3				3
Total			34				34				35				36				38
Stacked vessels			(5	)			(7	)			(9	)			(11	)			(13	)
Active vessels			29				27				26				25				25
Asia Pacific fleet:
Deepwater			10				3				3				3				3
Towing-supply			5				2				2				2				2
Other			4				—				—				—				—
Total			19				5				5				5				5
Stacked vessels			(1	)			—				—				—				—
Active vessels			18				5				5				5				5
Middle East fleet:
Deepwater			24				17				17				17				17
Towing-supply			17				16				16				16				16
Total			41				33				33				33				33
Stacked vessels			—				—				(1	)			(1	)			(1	)
Active vessels			41				33				32				32				32
Europe/Mediterranean fleet:
Deepwater			27				28				28				28				29
Total			27				28				28				28				29
Stacked vessels			(2	)			(4	)			(5	)			(7	)			(8	)
Active vessels			25				24				23				21				21
West Africa fleet:
Deepwater			25				17				18				19				20
Towing-supply			16				9				10				11				11
Other			26				26				24				25				26
Total			67				52				52				55				57
Stacked vessels			(8	)			(10	)			(13	)			(19	)			(22	)
Active vessels			59				42				39				36				35
Worldwide fleet:
Deepwater			111				89				91				92				96
Towing-supply			46				35				36				37				37
Other			31				28				26				28				29
Total			188				152				153				157				162
Stacked vessels			(16	)			(21	)			(28	)			(38	)			(44	)
Active vessels			172				131				125				119				118
Total active			172				131				125				119				118
Total stacked			16				21				28				38				44
Total joint venture			1				1				3				3				3
Total			189				153				156				160				165

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA
		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2022				2022				2021				2021				2021
AVAILABLE DAYS - TOTAL FLEET:
Americas fleet:
Deepwater			2,278				2,160				2,269				2,300				2,497
Towing-supply			701				720				736				736				728
Other			121				145				184				244				273
Total			3,100				3,025				3,189				3,280				3,498
Asia Pacific fleet:
Deepwater			873				270				276				276				273
Towing-supply			487				180				184				184				182
Other			392				—				—				—				—
Total			1,752				450				460				460				455
Middle East fleet:
Deepwater			2,156				1,539				1,564				1,564				1,547
Towing-supply			1,547				1,448				1,472				1,472				1,485
Total			3,703				2,987				3,036				3,036				3,032
Europe/Mediterranean fleet:
Deepwater			2,486				2,536				2,607				2,612				2,672
Total			2,486				2,536				2,607				2,612				2,672
West Africa fleet:
Deepwater			2,260				1,553				1,656				1,718				1,853
Towing-supply			1,460				815				920				1,011				1,001
Other			2,366				2,340				2,208				2,328				2,366
Total			6,086				4,708				4,784				5,057				5,220
Worldwide fleet:
Deepwater			10,053				8,058				8,372				8,470				8,842
Towing-supply			4,195				3,163				3,312				3,403				3,396
Other			2,879				2,485				2,392				2,572				2,639
Total			17,127				13,706				14,076				14,445				14,877

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA
		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2022				2022				2021				2021				2021
OUT-OF-SERVICE - STACKED DAYS:
Americas fleet:
Deepwater			428				450				621				814				889
Towing-supply			64				90				92				92				91
Other			—				55				92				152				182
Total			492				595				805				1,058				1,162
Asia Pacific fleet:
Deepwater			61				—				—				—				—
Total			61				—				—				—				—
Middle East fleet:
Deepwater			—				25				92				92				91
Towing-supply			—				—				—				—				29
Total			—				25				92				92				120
Europe/Mediterranean fleet:
Deepwater			150				376				474				641				766
Total			150				376				474				641				766
West Africa fleet:
Deepwater			18				203				307				537				852
Towing-supply			238				275				382				551				516
Other			496				450				506				655				637
Total			752				928				1,195				1,743				2,005
Worldwide fleet:
Deepwater			657				1,054				1,494				2,084				2,598
Towing-supply			302				365				474				643				636
Other			496				505				598				807				819
Total			1,455				1,924				2,566				3,534				4,053

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA
		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2022				2022				2021				2021				2021
AVAILABLE DAYS - ACTIVE FLEET:
Americas fleet:
Deepwater			1,850				1,710				1,648				1,486				1,608
Towing-supply			637				630				644				644				637
Other			121				90				92				92				91
Total			2,608				2,430				2,384				2,222				2,336
Asia Pacific fleet:
Deepwater			812				270				276				276				273
Towing-supply			487				180				184				184				182
Other			392				—				—				—				—
Total			1,691				450				460				460				455
Middle East fleet:
Deepwater			2,156				1,514				1,472				1,472				1,456
Towing-supply			1,547				1,448				1,472				1,472				1,456
Total			3,703				2,962				2,944				2,944				2,912
Europe/Mediterranean fleet:
Deepwater			2,336				2,160				2,133				1,971				1,906
Total			2,336				2,160				2,133				1,971				1,906
West Africa fleet:
Deepwater			2,242				1,350				1,349				1,181				1,001
Towing-supply			1,222				540				538				460				485
Other			1,870				1,890				1,702				1,673				1,729
Total			5,334				3,780				3,589				3,314				3,215
Worldwide fleet:
Deepwater			9,396				7,004				6,878				6,386				6,244
Towing-supply			3,893				2,798				2,838				2,760				2,760
Other			2,383				1,980				1,794				1,765				1,820
Total			15,672				11,782				11,510				10,911				10,824

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA
		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2022				2022				2021				2021				2021
UTILIZATION - TOTAL FLEET:
Americas fleet:
Deepwater			71.3	%			59.3	%			57.0	%			53.0	%			45.6	%
Towing-supply			74.2				64.6				71.4				64.9				76.3
Other			100.0				62.1				50.0				37.7				33.3
Total			73.0	%			60.7	%			59.9	%			54.5	%			51.0	%
Asia Pacific fleet:
Deepwater			59.0	%			100.0	%			100.0	%			100.0	%			100.0	%
Towing-supply			69.8				97.9				100.0				90.2				100.0
Other			85.5				—				—				—				—
Total			67.9	%			99.2	%			100.0	%			96.1	%			100.0	%
Middle East fleet:
Deepwater			79.2	%			81.8	%			82.8	%			83.8	%			86.2	%
Towing-supply			83.0				84.2				93.5				82.9				80.4
Total			80.8	%			82.9	%			88.0	%			83.4	%			83.4	%
Europe/Mediterranean fleet:
Deepwater			82.8	%			77.8	%			72.4	%			68.3	%			64.7	%
Total			82.8	%			77.8	%			72.4	%			68.3	%			64.7	%
West Africa fleet:
Deepwater			87.4	%			75.9	%			65.7	%			54.6	%			42.3	%
Towing-supply			78.2				65.9				50.0				40.0				38.4
Other			55.2				54.4				45.9				43.9				34.6
Total			72.7	%			63.5	%			53.5	%			46.7	%			38.1	%
Worldwide fleet:
Deepwater			78.4	%			74.0	%			69.7	%			65.2	%			59.4	%
Towing-supply			78.4				75.8				76.9				66.6				68.2
Other			61.2				54.8				46.2				43.3				34.5
Total			75.5	%			70.9	%			67.4	%			61.7	%			57.0	%

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA
		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2022				2022				2021				2021				2021
UTILIZATION - ACTIVE FLEET:
Americas fleet:
Deepwater			87.7	%			74.8	%			78.4	%			82.0	%			70.7	%
Towing-supply			81.7				73.8				81.5				74.1				87.2
Other			100.0				100.0				100.0				100.0				100.0
Total			86.8	%			75.5	%			80.1	%			80.4	%			76.4	%
Asia Pacific fleet:
Deepwater			63.4	%			100.0	%			100.0	%			100.0	%			100.0	%
Towing-supply			69.8				97.9				100.0				90.2				100.0
Other			85.5				—				—				—				—
Total			70.4	%			99.2	%			100.0	%			96.1	%			100.0	%
Middle East fleet:
Deepwater			79.2	%			83.1	%			88.0	%			89.0	%			91.6	%
Towing-supply			83.0				84.2				93.5				82.9				82.0
Total			80.8	%			83.6	%			90.7	%			86.0	%			86.8	%
Europe/Mediterranean fleet:
Deepwater			88.1	%			91.3	%			88.5	%			90.5	%			90.6	%
Total			88.1	%			91.3	%			88.5	%			90.5	%			90.6	%
West Africa fleet:
Deepwater			88.1	%			87.3	%			80.7	%			79.4	%			78.3	%
Towing-supply			93.5				99.5				85.5				87.9				79.2
Other			69.8				67.3				59.5				61.1				47.4
Total			82.9	%			79.1	%			71.4	%			71.3	%			61.8	%
Worldwide fleet:
Deepwater			83.9	%			85.1	%			84.9	%			86.5	%			84.2	%
Towing-supply			84.4				85.7				89.7				82.2				83.9
Other			73.9				68.8				61.6				63.1				50.0
Total			82.5	%			82.5	%			82.4	%			81.6	%			78.4	%

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA
		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2022				2022				2021				2021				2021
AVERAGE VESSEL DAY RATES: (A)
Americas fleet:
Deepwater		$	18,955			$	16,964			$	16,760			$	15,568			$	15,646
Towing-supply			9,350				12,030				9,638				9,298				8,162
Other			15,601				12,633				12,644				12,640				12,634
Total			16,569				15,501				14,603				13,742				13,162
Asia Pacific fleet:
Deepwater			22,844				14,529				14,315				14,126				14,275
Towing-supply			12,862				5,528				5,236				5,346				5,346
Total			13,748				10,975				10,683				10,830				10,704
Middle East fleet:
Deepwater			11,561				10,011				10,319				10,219				10,020
Towing-supply			6,736				6,249				6,240				6,110				6,192
Total			9,490				8,160				8,217				8,238				8,213
Europe/Mediterranean fleet:
Deepwater			15,705				12,046				11,834				11,800				12,905
Total			15,776				12,124				11,917				11,890				13,005
West Africa fleet:
Deepwater			14,026				12,516				12,553				11,700				11,242
Towing-supply			12,661				12,275				12,624				13,536				14,480
Other			4,026				3,972				3,669				3,717				3,124
Total			10,721				8,834				9,052				8,562				8,521
Worldwide fleet:
Deepwater			15,522				12,878				12,840				12,355				12,589
Towing-supply			9,843				8,668				8,022				8,049				7,978
Other			4,264				4,657				4,558				4,598				4,253
Total		$	12,544			$	10,687			$	10,583			$	10,288			$	10,435

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

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2022				2022				2021				2021				2021
Americas
Vessel revenues		$	37,520			$	28,444			$	27,882			$	24,564			$	23,481
Vessel operating costs:
Crew costs			12,949				11,252				11,080				8,535				11,132
Repair and maintenance			2,866				2,627				2,487				2,951				2,192
Insurance			248				367				161				219				(30	)
Fuel, lube and supplies			2,326				2,385				2,019				2,028				1,952
Other			3,054				2,196				4,347				3,008				2,972
Total vessel operating costs			21,443				18,827				20,094				16,741				18,218
Vessel operating margin ($)			16,077				9,617				7,788				7,823				5,263
Vessel operating margin (%)			42.8	%			33.8	%			27.9	%			31.8	%			22.4	%
Americas - Select operating statistics
Average vessels - Total fleet			34				34				35				36				38
Utilization - Total fleet			73.0	%			60.7	%			59.9	%			54.5	%			51.0	%
Average vessels - Active fleet			29				27				26				25				25
Utilization - Active fleet			86.8	%			75.5	%			80.1	%			80.4	%			76.4	%
Average day rates		$	16,569			$	15,501			$	14,603			$	13,742			$	13,162
Vessels commencing drydocks			3				5				5				4				3
Deferred drydocking and survey costs - beginning balance		$	18,422			$	16,270			$	13,124			$	12,919			$	11,813
Cash paid for deferred drydocking and survey costs			3,857				5,060				6,470				4,906				2,157
Amortization of deferred drydocking and survey costs			(3,071	)			(2,908	)			(2,909	)			(2,936	)			(2,753	)
Disposals, intersegment transfers and other			—				—				(415	)			(1,765	)			1,702
Deferred drydocking and survey costs - ending balance		$	19,208			$	18,422			$	16,270			$	13,124			$	12,919

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2022				2022				2021				2021				2021
Asia Pacific
Vessel revenues		$	16,362			$	4,897			$	4,914			$	4,786			$	4,870
Vessel operating costs:
Crew costs			8,138				788				883				875				801
Repair and maintenance			945				284				342				552				268
Insurance			90				54				24				51				(10	)
Fuel, lube and supplies			1,590				105				166				211				205
Other			1,176				422				459				500				459
Total vessel operating costs			11,939				1,653				1,874				2,189				1,723
Vessel operating margin ($)			4,423				3,244				3,040				2,597				3,147
Vessel operating margin (%)			27.0	%			66.2	%			61.9	%			54.3	%			64.6	%
Asia Pacific - Select operating statistics
Average vessels - Total fleet			19				5				5				5				5
Utilization - Total fleet			67.9	%			99.2	%			100.0	%			96.1	%			100.0	%
Average vessels - Active fleet			18				5				5				5				5
Utilization - Active fleet			70.4	%			99.2	%			100.0	%			96.1	%			100.0	%
Average day rates		$	13,748			$	10,975			$	10,683			$	10,830			$	10,704
Vessels commencing drydocks			2				—				—				—				—
Deferred drydocking and survey costs - beginning balance		$	542			$	710			$	1,019			$	1,352			$	1,848
Cash paid for deferred drydocking and survey costs			1,262				—				—				—				23
Amortization of deferred drydocking and survey costs			(163	)			(168	)			(309	)			(379	)			(519	)
Disposals, intersegment transfers and other			(789	)			—				—				46				—
Deferred drydocking and survey costs - ending balance		$	852			$	542			$	710			$	1,019			$	1,352

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2022				2022				2021				2021				2021
Middle East
Vessel revenues		$	28,396			$	20,218			$	21,948			$	20,847			$	20,758
Vessel operating costs:
Crew costs			11,193				8,465				8,827				9,075				9,109
Repair and maintenance			3,429				2,124				2,804				2,392				2,364
Insurance			325				297				179				9				47
Fuel, lube and supplies			2,700				1,559				1,148				1,536				1,289
Other			2,249				2,457				2,708				2,834				2,233
Total vessel operating costs			19,896				14,902				15,666				15,846				15,042
Vessel operating margin ($)			8,500				5,316				6,282				5,001				5,716
Vessel operating margin (%)			29.9	%			26.3	%			28.6	%			24.0	%			27.5	%
Middle East - Select operating statistics
Average vessels - Total fleet			41				33				33				33				33
Utilization - Total fleet			80.8	%			82.9	%			88.0	%			83.4	%			83.4	%
Average vessels - Active fleet			41				33				32				32				32
Utilization - Active fleet			80.8	%			83.6	%			90.7	%			86.0	%			86.8	%
Average day rates		$	9,490			$	8,160			$	8,217			$	8,238			$	8,213
Vessels commencing drydocks			7				2				2				1				4
Deferred drydocking and survey costs - beginning balance		$	10,665			$	8,994			$	10,809			$	10,772			$	12,141
Cash paid for deferred drydocking and survey costs			6,362				3,855				327				2,441				1,331
Amortization of deferred drydocking and survey costs			(2,308	)			(2,184	)			(2,142	)			(2,290	)			(2,301	)
Disposals, intersegment transfers and other			261				—				—				(114	)			(399	)
Deferred drydocking and survey costs - ending balance		$	14,980			$	10,665			$	8,994			$	10,809			$	10,772

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2022				2022				2021				2021				2021
Europe/Mediterranean
Vessel revenues		$	32,475			$	23,919			$	22,501			$	21,197			$	22,467
Vessel operating costs:
Crew costs			12,349				12,003				11,235				10,541				10,519
Repair and maintenance			2,414				2,106				3,562				1,754				2,244
Insurance			307				309				38				208				(131	)
Fuel, lube and supplies			1,740				1,077				936				846				864
Other			2,468				2,026				1,919				1,926				1,803
Total vessel operating costs			19,278				17,521				17,690				15,275				15,299
Vessel operating margin ($)			13,197				6,398				4,811				5,922				7,168
Vessel operating margin (%)			40.6	%			26.7	%			21.4	%			27.9	%			31.9	%
Europe/Mediterranean - Select operating statistics
Average vessels - Total fleet			27				28				28				28				29
Utilization - Total fleet			82.8	%			77.8	%			72.4	%			68.3	%			64.7	%
Average vessels - Active fleet			25				24				23				21				21
Utilization - Active fleet			88.1	%			91.3	%			88.5	%			90.5	%			90.6	%
Average day rates		$	15,776			$	12,124			$	11,917			$	11,890			$	13,005
Vessels commencing drydocks			3				1				1				1				2
Deferred drydocking and survey costs - beginning balance		$	6,425			$	4,983			$	5,571			$	6,340			$	7,731
Cash paid for deferred drydocking and survey costs			4,206				2,575				93				892				162
Amortization of deferred drydocking and survey costs			(1,400	)			(1,133	)			(1,096	)			(1,316	)			(1,553	)
Disposals, intersegment transfers and other			—				—				415				(345	)			—
Deferred drydocking and survey costs - ending balance		$	9,231			$	6,425			$	4,983			$	5,571			$	6,340

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2022				2022				2021				2021				2021
West Africa
Vessel revenues		$	47,422			$	26,398			$	23,183			$	20,240			$	16,938
Vessel operating costs:
Crew costs			16,010				8,329				7,690				6,583				6,124
Repair and maintenance			3,823				2,320				2,307				2,848				2,466
Insurance			396				357				115				325				(13	)
Fuel, lube and supplies			3,165				1,950				2,136				2,130				2,231
Other			4,307				2,652				3,615				3,407				3,173
Total vessel operating costs			27,701				15,608				15,863				15,293				13,981
Vessel operating margin ($)			19,721				10,790				7,320				4,947				2,957
Vessel operating margin (%)			41.6	%			40.9	%			31.6	%			24.4	%			17.5	%
West Africa - Select operating statistics
Average vessels - Total fleet			67				52				52				55				57
Utilization - Total fleet			72.7	%			63.5	%			53.5	%			46.7	%			38.1	%
Average vessels - Active fleet			59				42				39				36				35
Utilization - Active fleet			82.9	%			79.1	%			71.4	%			71.3	%			61.8	%
Average day rates		$	10,721			$	8,834			$	9,052			$	8,562			$	8,521
Vessels commencing drydocks			5				3				3				3				2
Deferred drydocking and survey costs - beginning balance		$	8,308			$	9,777			$	9,987			$	8,989			$	13,115
Cash paid for deferred drydocking and survey costs			2,764				1,122				3,004				2,378				376
Amortization of deferred drydocking and survey costs			(2,210	)			(2,591	)			(3,214	)			(3,148	)			(3,199	)
Disposals, intersegment transfers and other			528				—				—				1,768				(1,303	)
Deferred drydocking and survey costs - ending balance		$	9,390			$	8,308			$	9,777			$	9,987			$	8,989

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2022				2022				2021				2021				2021
Worldwide
Vessel revenues		$	162,175			$	103,876			$	100,428			$	91,634			$	88,514
Vessel operating costs:
Crew costs			60,639				40,837				39,715				35,609				37,685
Repair and maintenance			13,477				9,461				11,502				10,497				9,534
Insurance			1,366				1,384				517				812				(137	)
Fuel, lube and supplies			11,521				7,076				6,405				6,751				6,541
Other			13,254				9,753				13,048				11,675				10,640
Total vessel operating costs			100,257				68,511				71,187				65,344				64,263
Vessel operating margin ($)			61,918				35,365				29,241				26,290				24,251
Vessel operating margin (%)			38.2	%			34.0	%			29.1	%			28.7	%			27.4	%
Worldwide - Select operating statistics
Average vessels - Total fleet			188				152				153				157				162
Utilization - Total fleet			75.5	%			70.9	%			67.4	%			61.7	%			57.0	%
Average vessels - Active fleet			172				131				125				119				118
Utilization - Active fleet			82.5	%			82.5	%			82.4	%			81.6	%			78.4	%
Average day rates		$	12,544			$	10,687			$	10,583			$	10,288			$	10,435
Vessels commencing drydocks			20				11				11				9				11
Deferred drydocking and survey costs - beginning balance		$	44,362			$	40,734			$	40,510			$	40,372			$	46,648
Cash paid for deferred drydocking and survey costs			18,451				12,612				9,894				10,617				4,049
Amortization of deferred drydocking and survey costs			(9,152	)			(8,984	)			(9,670	)			(10,069	)			(10,325	)
Disposals, intersegment transfers and other			—				—				—				(410	)			—
Deferred drydocking and survey costs - ending balance		$	53,661			$	44,362			$	40,734			$	40,510			$	40,372

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)
		Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2022				2022				2021				2021				2021
Net loss		$	(25,014	)		$	(12,271	)		$	(38,079	)		$	(26,407	)		$	(29,647	)
Interest and other debt costs			4,284				4,175				3,417				3,681				3,944
Income tax (benefit) expense			6,619				5,218				(3,047	)			887				6,026
Depreciation			22,614				17,673				18,618				17,911				18,224
Amortization of deferred drydock and survey costs			9,152				8,984				9,670				10,069				10,325
EBITDA (A), (B), (C)			17,655				23,779				(9,421	)			6,141				8,872
Long-lived asset impairment (credit) and other			—				(500	)			13,476				2,167				—
Affiliate credit loss impairment expense (credit)			—				—				1,400				—				(1,000	)
Loss on early extinguishment of debt			—				—				11,100				—				—
Loss on warrants			14,175				—				—				—				—
Gain on bargain purchase			—				(1,300	)			—				—				—
One-time integration related costs			7,314				2,305				221				112				795
Adjusted EBITDA (A), (B), (C)		$	39,144			$	24,284			$	16,776			$	8,420			$	8,667

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 merger and integration related costs.

Note (B): EBITDA and Adjusted EBITDA for the three months ended June 30, 2022, and for each of the prior four quarters includes non-cash, stock-based compensation expense of $1,963, $1,458, $1,439, $1,523, and $1,504, respectively.

Note (C): EBITDA and Adjusted EBITDA for the three months ended June 30, 2022, and for each of the prior four quarters includes foreign exchange gain (losses) of $(1,881), $946, $582, $(523), and $422, 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
		June 30,				March 31,				December 31,				September 30,				June 30,
		2022				2022				2021				2021				2021
Net cash provided by (used in) operating activities (A)		$	(21,603	)		$	(11,624	)		$	6,938			$	(2,499	)		$	4,851
Cash interest expense			7,626				—				3,664				3,055				3,282
Interest income and other			(349	)			(2,186	)			(1,426	)			(148	)			(8	)
Additions to property and equipment			(4,151	)			(1,229	)			(6,368	)			(722	)			(665	)
Acquisitions			(28,486	)			(1,039	)			—				—				—
Expansion capital			28,486				1,039				—				—				—
Free cash flow before proceeds from asset sales			(18,477	)			(15,039	)			2,808				(314	)			7,460
Proceeds from asset sales			3,535				4,628				54				4,396				18,577
Free cash flow		$	(14,942	)		$	(10,411	)		$	2,862			$	4,082			$	26,037

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
		June 30,				March 31,				December 31,				September 30,				June 30,
		2022				2022				2021				2021				2021
Cash provided by (used in) changes in assets and liabilities, excluding drydock payments		$	(27,697	)		$	(13,401	)		$	265			$	2,586			$	7,066
Cash paid for deferred drydock and survey costs			(18,451	)			(12,612	)			(9,894	)			(10,617	)			(4,049	)
Total sources (uses) of cash for changes in assets and liabilities		$	(46,148	)		$	(26,013	)		$	(9,629	)		$	(8,031	)		$	3,017

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220729005448/en/

Tidewater Inc.

West Gotcher

Vice President,

Finance and Investor Relations

+1.713.470.5285

Source: Tidewater Inc.

FAQ

What were Tidewater's Q2 2022 revenue figures?

Tidewater reported Q2 2022 revenue of $163.4 million, compared to $90.0 million in Q2 2021.

How much did Tidewater's adjusted EBITDA increase in Q2 2022?

Adjusted EBITDA for Tidewater increased from $8.7 million in Q2 2021 to $39.1 million in Q2 2022.

What was the average day rate for Tidewater in Q2 2022?

The average day rate for Tidewater in Q2 2022 was $12,544, a 17% increase from the previous quarter.

What is the current global fleet utilization rate for Tidewater?

Tidewater's global fleet utilization rate increased to 75.5% in Q2 2022.

How did the acquisition of Swire Pacific Offshore affect Tidewater's revenue?

The acquisition contributed approximately $43.2 million in revenue during Q2 2022.