Helix Energy Solutions Group, Inc. ("Helix") (NYSE: HLX)
reported a net loss of $28.3 million, or $(0.19) per diluted share,
for the fourth quarter 2023 compared to net income of $15.6
million, or $0.10 per diluted share, for the third quarter 2023 and
net income of $2.7 million, or $0.02 per diluted share, for the
fourth quarter 2022. Net loss in the fourth quarter 2023 includes a
net pre-tax loss of approximately $37.3 million, or $(0.25) per
diluted share, related to the repurchase of $159.8 million
principal amount of our Convertible Senior Notes due 2026 (“2026
Notes”). Helix reported adjusted EBITDA1 of $70.6 million for the
fourth quarter 2023 compared to $96.4 million for the third quarter
2023 and $49.2 million for the fourth quarter 2022.
For the full year 2023, Helix reported a net loss of $10.8
million, or $(0.07) per diluted share, compared to a net loss of
$87.8 million, or $(0.58) per diluted share, for the full year
2022. Net loss in 2023 includes pre-tax losses of approximately
$37.3 million, or $(0.25) per diluted share, related to the
repurchase of $159.8 million principal amount of our 2026 Notes and
$42.2 million, or $(0.28) per diluted share, related to the change
in the value of the Alliance earnout during the year. Adjusted
EBITDA for the full year 2023 was $273.4 million compared to $121.0
million for the full year 2022. The table below summarizes our
results of operations:
Summary
of Results
($ in thousands, except per
share amounts, unaudited)
Three Months Ended Year Ended
12/31/2023
12/31/2022
9/30/2023
12/31/2023
12/31/2022
Revenues
$
335,157
$
287,816
$
395,670
$
1,289,728
$
873,100
Gross Profit
$
49,278
$
31,364
$
80,545
$
200,356
$
50,616
15%
11%
20%
16%
6%
Net Income (Loss)
$
(28,333
)
$
2,709
$
15,560
$
(10,838
)
$
(87,784
)
Basic Earnings (Loss) Per Share
$
(0.19
)
$
0.02
$
0.10
$
(0.07
)
$
(0.58
)
Diluted Earnings (Loss) Per Share
$
(0.19
)
$
0.02
$
0.10
$
(0.07
)
$
(0.58
)
Adjusted EBITDA1
$
70,632
$
49,169
$
96,385
$
273,403
$
121,022
Cash and Cash Equivalents2
$
332,191
$
186,604
$
168,370
$
332,191
$
186,604
Net Debt1,3
$
29,531
$
74,964
$
58,887
$
29,531
$
74,964
Cash Flows from Operating Activities
$
94,737
$
49,712
$
31,611
$
152,457
$
51,108
Free Cash Flow1
$
91,878
$
21,198
$
23,366
$
133,798
$
17,604
1
Adjusted EBITDA, Net Debt and Free Cash
Flow are non-GAAP measures; see reconciliations below
2
Excludes restricted cash of $2.5 million
as of 12/31/22
3
Net Debt is calculated using U.S. GAAP
carrying values for long-term debt. Helix has issued a redemption
notice for the remaining 2026 Notes, and investors may elect to
convert their notes. Helix will settle all redemptions and
conversions in cash at amounts that we expect will exceed the 2026
Notes’ current carrying values.
Owen Kratz, President and Chief Executive Officer of Helix,
stated, “We finished the year strong, and our fourth quarter 2023
reflects our highest fourth quarter EBITDA since 2013 as our Well
Intervention business operated with high utilization, offsetting
much of the seasonal slowdown in our Robotics and Shallow Water
Abandonment segments. Our 2023 full-year results mark our second
consecutive year of meaningful revenue and EBITDA growth, and we
achieved our highest annual EBITDA since 2014, with significant
improvements in Well Intervention and ongoing strong contributions
from Robotics and Shallow Water Abandonment. During 2023, we
initiated important transformations to our capital structure,
issuing $300 million in senior notes and taking out most of our
2026 convertible notes with the remainder expected to be redeemed
during the first quarter 2024. This transformation, when complete,
returns us to a simpler capital structure, eliminates the potential
dilution overhang of over 28 million shares, and pushes our major
long-term debt maturities out to 2029. 2024 will not be without its
challenges, but we believe we are well-positioned to capitalize on
this strong market and to continue executing our strategy into the
future.”
Segment
Information, Operational and Financial Highlights
($ in thousands,
unaudited)
Three Months Ended Year Ended
12/31/2023 12/31/2022 9/30/2023
12/31/2023 12/31/2022 Revenues: Well
Intervention
$
210,735
$
167,658
$
225,367
$
732,761
$
524,241
Robotics
62,957
48,538
75,646
257,875
191,921
Shallow Water Abandonment1
61,995
57,409
87,272
274,954
124,810
Production Facilities
19,383
27,895
24,469
87,885
82,315
Intercompany Eliminations
(19,913
)
(13,684
)
(17,084
)
(63,747
)
(50,187
)
Total
$
335,157
$
287,816
$
395,670
$
1,289,728
$
873,100
Income (Loss) from Operations: Well Intervention
$
21,041
$
2,554
$
16,120
$
32,398
$
(53,056
)
Robotics
9,224
7,127
20,665
52,450
29,981
Shallow Water Abandonment1
12,032
5,864
27,624
66,240
22,184
Production Facilities
(985
)
9,237
8,886
20,832
27,201
Change in Fair Value of Contingent Consideration
(10,927
)
(13,390
)
(16,499
)
(42,246
)
(16,054
)
Corporate / Other / Eliminations
(15,005
)
(16,520
)
(20,568
)
(66,164
)
(55,111
)
Total
$
15,380
$
(5,128
)
$
36,228
$
63,510
$
(44,855
)
1 Shallow Water Abandonment includes the results of Helix Alliance
beginning July 1, 2022, the date of acquisition.
Fourth Quarter Results
Segment Results
Well Intervention
Well Intervention revenues decreased $14.6 million, or 6%,
during the fourth quarter 2023 compared to the prior quarter
primarily due to lower revenues on the Q7000 and seasonally lower
rates on the North Sea vessels, offset in part by higher
utilization and rates in the Gulf of Mexico. Revenues decreased on
the Q7000 during the fourth quarter as the vessel had lower
operating efficiency and began transiting and mobilizing for its
Australia campaign in November following the New Zealand campaign,
which had commenced during the second quarter. Gulf of Mexico
revenues during the fourth quarter benefitted from higher rates on
the Q5000 and higher utilization on the Q4000 following an extended
docking that was completed during the prior quarter. Overall Well
Intervention vessel utilization increased to 95% during the fourth
quarter 2023 compared to 92% during the prior quarter. Well
Intervention operating income increased $4.9 million during the
fourth quarter 2023 compared to the prior quarter. The increase in
operating income during the fourth quarter, despite a reduction in
revenue, was primarily due to our mix of contracting, with higher
incremental margins in the Gulf of Mexico, offset in part by
reductions in the North Sea and higher costs on the Q7000 during
the quarter.
Well Intervention revenues increased $43.1 million, or 26%,
during the fourth quarter 2023 compared to the fourth quarter 2022.
The increase was primarily due to higher rates in the Gulf of
Mexico, Brazil and the North Sea, offset in part by lower revenues
on the Q7000. During the fourth quarter 2023, revenues in the Gulf
of Mexico benefitted from improving rates, Brazil revenues
increased as both Siem Helix vessels commenced long-term contracts
with improved day rates at the end of 2022 and North Sea revenues
improved with a stronger British pound compared to the fourth
quarter 2022. Revenues on the Q7000 decreased during the fourth
quarter 2023 compared to the fourth quarter 2022 as the vessel had
lower operating efficiency and began transiting and mobilizing for
its Australia campaign in November. Overall Well Intervention
vessel utilization decreased slightly to 95% during the fourth
quarter 2023 compared to 97% during the fourth quarter 2022. Well
Intervention operating income increased $18.5 million during the
fourth quarter 2023 compared to the fourth quarter 2022 primarily
due to higher revenues, offset in part by higher costs on the Q7000
during 2023.
Robotics
Robotics revenues decreased $12.7 million, or 17%, during the
fourth quarter 2023 compared to the prior quarter. The decrease in
revenues was due to seasonally lower rates and lower vessel and
trenching days during the fourth quarter 2023 compared to the prior
quarter. Chartered vessel activity decreased to 463 days during the
fourth quarter 2023 compared to 506 days during the third quarter
2023, and vessel utilization was 97% during both the fourth and
third quarters 2023. Vessel days included 92 spot vessel days
during both the fourth and third quarters 2023 performing
renewables trenching operations offshore Taiwan. ROV and trencher
utilization increased slightly to 68% during the fourth quarter
2023 compared to 67% during the prior quarter. Integrated vessel
trenching days decreased to 271 days during the fourth quarter 2023
compared to 276 days during the prior quarter. Robotics operating
income decreased $11.4 million during the fourth quarter 2023
compared to the prior quarter due to lower revenues.
Robotics revenues increased $14.4 million, or 30%, during the
fourth quarter 2023 compared to the fourth quarter 2022 due to
higher chartered vessel, ROV and trenching activities and rates
during the current year. Chartered vessel days increased to 463
days during the fourth quarter 2023 compared to 332 days during the
fourth quarter 2022. Vessel days included 92 spot vessel days
during the fourth quarter 2023 compared to 68 spot vessel days
during the fourth quarter 2022. Chartered vessel utilization
increased slightly to 97% during the fourth quarter 2023 compared
to 96% during the fourth quarter 2022. ROV and trencher utilization
increased to 68% during the fourth quarter 2023 compared to 58%
during the fourth quarter 2022, and the fourth quarter 2023
included 271 days of integrated vessel trenching compared to 160
days during the fourth quarter 2022. Robotics operating income
increased $2.1 million during the fourth quarter 2023 compared to
the fourth quarter 2022 primarily due to higher revenues, offset in
part by weather-related losses on a fixed-price trenching contract
in the North Sea during the fourth quarter 2023.
Shallow Water Abandonment
Shallow Water Abandonment revenues decreased $25.3 million, or
29%, during the fourth quarter 2023 compared to the previous
quarter. The decrease in revenues reflected seasonally lower
utilization levels across all asset classes. Overall vessel
utilization was 72% during the fourth quarter 2023 compared to 89%
during the prior quarter. Plug and Abandonment and Coiled Tubing
systems achieved 1,386 days of utilization, or 58%, during the
fourth quarter 2023 compared to 1,531 days of utilization, or 74%,
during the prior quarter. Utilization rates in the third and fourth
quarters included five P&A systems following their acquisition
in September 2023. The Epic Hedron heavy lift barge utilization
declined to 70 days, or 76%, during the fourth quarter 2023
compared to being fully utilized during the prior quarter. Shallow
Water Abandonment operating income decreased $15.6 million during
the fourth quarter 2023 compared to the prior quarter primarily due
to lower revenue during the fourth quarter.
Shallow Water Abandonment revenues increased $4.6 million, or
8%, during the fourth quarter 2023 compared to the fourth quarter
2022. The increase in revenues reflected higher vessel and system
utilization during the fourth quarter 2023 compared to the fourth
quarter 2022. Overall vessel utilization was 72% during the fourth
quarter 2023 compared to 70% during the fourth quarter 2022. Plug
and Abandonment and Coiled Tubing systems achieved 1,386 days of
utilization, or 58% on 26 systems, during the fourth quarter 2023
compared to 1,247 days of utilization, or 65% on 21 systems, during
the fourth quarter 2022. The Epic Hedron heavy lift barge had 70
days of utilization during the fourth quarter 2023 compared to
being idle during the fourth quarter 2022. Fourth quarter 2023
performance benefitted from our full-field decommissioning contract
that commenced during the third quarter 2023. Shallow Water
Abandonment operating income increased $6.2 million during the
fourth quarter 2023 compared to the fourth quarter 2022 primarily
due to higher revenue and lower costs during the fourth quarter
2023.
Production Facilities
Production Facilities revenues decreased $5.1 million, or 21%,
during the fourth quarter 2023 compared to the prior quarter
primarily due to lower oil and gas production due to the Thunder
Hawk wells being shut-in during the entire fourth quarter.
Production Facilities incurred operating losses of $1.0 million
during the fourth quarter 2023 compared to operating income of $8.9
million during the previous quarter primarily due to lower revenues
and the incurrence of well workover costs related to the Thunder
Hawk wells during the fourth quarter 2023.
Production Facilities revenues decreased $8.5 million, or 31%,
during the fourth quarter 2023 compared to the fourth quarter 2022
primarily due to lower oil and gas production due to the Thunder
Hawk wells being shut-in during the entire fourth quarter 2023.
Production Facilities incurred operating losses of $1.0 million
during the fourth quarter 2023 compared to operating income of $9.2
million during the fourth quarter 2022 primarily due to lower
revenues and the incurrence of well workover costs related to the
Thunder Hawk wells during the fourth quarter 2023.
Selling, General and Administrative and
Other
Selling, General and Administrative
Selling, general and administrative expenses were $23.0 million,
or 6.9% of revenue, during the fourth quarter 2023 compared to
$27.8 million, or 7.0% of revenue, during the prior quarter. The
decrease during the fourth quarter 2023 was primarily due to lower
recognized compensation costs compared to the prior quarter.
Change in Fair Value of Contingent Consideration
Change in fair value of contingent consideration related to our
acquisition of Alliance was $10.9 million during the fourth quarter
2023 and reflects an increase in the fair value of the earn-out
payable in cash in April 2024.
Debt Extinguishment Loss
The debt extinguishment loss of $37.3 million primarily relates
to the repurchase of $159.8 million principal amount of our 2026
Notes during the fourth quarter 2023 and primarily represents the
inducement cost of the repurchases above the 2026 Notes’ conversion
value.
Other Income and Expenses
Other income, net was $7.0 million during the fourth quarter
2023 compared to $8.3 million of other expense, net during the
prior quarter. Other income, net during the fourth quarter 2023
primarily includes foreign currency gains related to the
approximate 4% appreciation of the British pound on U.S. dollar
denominated intercompany debt in our U.K. entities, offset in part
by losses on conversion of our Nigerian naira into dollars during
the fourth quarter 2023.
Cash Flows
Operating cash flows were $94.7 million during the fourth
quarter 2023 compared to $31.6 million during the prior quarter and
$49.7 million during the fourth quarter 2022. Operating cash flows
during the fourth quarter 2023 benefited from strong working
capital inflows and lower capital spending, offset in part by lower
operating income compared to the prior quarter. Operating cash
flows increased during the fourth quarter 2023 compared to the
fourth quarter 2022 due to higher operating income, higher working
capital inflows and lower regulatory certification costs.
Regulatory certifications for our vessels and systems, which are
included in operating cash flows, were $3.3 million during the
fourth quarter 2023 compared to $17.9 million during the prior
quarter and $4.8 million during the fourth quarter 2022.
Capital expenditures, which are included in investing cash
flows, totaled $3.4 million during the fourth quarter 2023 compared
to $8.2 million during the prior quarter and $28.5 million during
the fourth quarter 2022. Capital expenditures during the fourth
quarter 2022 included our acquisition of three trenchers and our
interest in two subsea intervention riser systems.
Free Cash Flow was $91.9 million during the fourth quarter 2023
compared to $23.4 million during the prior quarter and $21.2
million during the fourth quarter 2022. The increase in Free Cash
Flow in the fourth quarter 2023 was due to higher operating cash
flows and lower capital expenditures compared to the prior quarter
and the fourth quarter 2022. (Free Cash Flow is a non-GAAP measure.
See reconciliation below.)
Full Year Results
Segment Results
Well Intervention
Well Intervention revenues increased $208.5 million, or 40%, in
2023 compared to 2022. The increase was primarily driven by higher
vessel utilization and rates in the North Sea and Brazil and higher
rates in the Gulf of Mexico. Revenues in Brazil benefitted from the
Siem Helix 1 and Siem Helix 2 working a full year on their
long-term contracts on improved rates compared to 2022, and the
North Sea and Gulf of Mexico have both benefitted from improved
spot rates in 2023 compared to 2022. The North Sea also benefitted
from strong winter utilization in 2023 compared to the prior year.
Revenues on the Q7000 were also higher, despite the vessel
incurring a higher number of transit and docking days in 2023
compared to 2022, as the vessel’s operations in New Zealand were on
an integrated project with higher project revenues and costs. The
improvement in rates was offset in part by lower utilization in the
Gulf of Mexico due to a higher number of regulatory docking days
during 2023 compared to 2022. Overall Well Intervention vessel
utilization increased to 88% during 2023 compared to 80% in 2022.
Well Intervention generated operating income of $32.4 million
during 2023 compared to operating losses of $53.1 million during
2022. The increase in operating results was due primarily to higher
revenues in 2023.
Robotics
Robotics revenues increased $66.0 million, or 34%, in 2023
compared to 2022. The increase was due to higher vessel, trenching
and ROV utilization and rates in 2023. Chartered vessel days
increased to 1,699 days, which included 310 spot vessel days, in
2023 compared to 1,401 days, which included 420 spot vessel days,
in 2022. Vessel trenching days increased to 807 days in 2023
compared to 483 days in 2022. Overall ROV and trencher utilization
increased to 62% in 2023 compared to 53% in 2022. Robotics
operating income increased $22.5 million in 2023 compared to 2022.
The increase in operating income was primarily due to higher
revenues during 2023.
Shallow Water Abandonment
Shallow Water Abandonment generated revenues of $275.0 million
during 2023 compared to $124.8 million during 2022 following the
Alliance acquisition on July 1, 2022. Revenues increased year over
year on an annualized basis with higher utilization and rates on
our systems and vessels in 2023. Plug and Abandonment and Coiled
Tubing systems achieved 5,748 days of utilization, or 70%, during
2023 compared to 2,324 days, or 62%, during 2022. Overall vessel
utilization in 2023 was relatively flat at 74%, compared to 73%
during 2022; however, vessel utilization in 2023 included 247 days
on the Epic Hedron compared to only 38 days during 2022. Shallow
Water Abandonment generated operating income of $66.2 million
during 2023 compared to $22.2 million during 2022 following the
Alliance acquisition on July 1, 2022, primarily due to higher
revenue in 2023.
Production Facilities
Production Facilities revenues increased $5.6 million, or 7%,
during 2023 compared to 2022. The increase was due to higher oil
and gas production volumes, offset in part by lower oil and gas
prices during 2023. Production Facilities operating income
decreased $6.4 million during 2023 primarily due to higher well
maintenance costs related to the Thunder Hawk wells, offset in part
by increases in revenues compared to 2022.
Selling, General and Administrative and
Other
Selling, General and Administrative
Selling, general and administrative expenses were $94.4 million,
or 7.3% of revenue, in 2023 compared to $76.8 million, or 8.8% of
revenue, in 2022. The increase in expense was primarily due to a
full year of general and administrative expenses related to Helix
Alliance as well as an increase in employee incentive and
share-based compensation costs in 2023.
Net Interest Expense
Net interest expense decreased to $17.3 million in 2022 compared
to $19.0 million in 2022. The decrease was due to higher interest
income on our invested cash reserves and the maturity of the
remaining $30 million of our Convertible Senior Notes due 2023
during the third quarter, offset in part by interest expense on our
$300 million Senior Notes due 2029 (the “2029 Notes”) issued during
the fourth quarter 2023.
Change in Fair Value of Contingent Consideration
Change in fair value of contingent consideration related to our
acquisition of Alliance was $42.2 million during 2023 and reflects
an increase in the fair value of the earn-out payable in cash in
April 2024.
Debt Extinguishment Loss
The debt extinguishment loss of $37.3 million primarily relates
to the repurchase of $159.8 million principal amount of the 2026
Notes during the fourth quarter 2023 and primarily represents the
inducement cost of the repurchases above the 2026 Notes’ conversion
value.
Other Income and Expenses
Other expense, net was $3.6 million in 2023 compared to $23.3
million in 2022. The change was primarily due to lower foreign
currency losses due to a strengthening of the British pound in 2023
compared to 2022, offset in part by losses associated with the
devaluation of our Nigerian naira holdings during 2023.
Cash Flows
Helix generated operating cash flows of $152.5 million in 2023
compared to $51.1 million in 2022. The increase in operating cash
flows in 2023 was due primarily to higher operating income in 2023,
offset in part by higher regulatory certification costs and working
capital outflows in 2023 compared to 2022. Regulatory certification
costs, which are considered part of Helix’s capital spending
program but are classified in operating cash flows, were $62.5
million in 2023 compared to $35.1 million in 2022.
Capital expenditures decreased to $19.6 million in 2023 compared
to $33.5 million in 2022. Capital expenditures during 2022 included
the acquisition of three subsea trenchers and our interest in two
subsea intervention systems.
Free Cash Flow was $133.8 million in 2023 compared to $17.6
million in 2022. The increase was due to higher operating cash
flows and lower capital expenditures in 2023 compared to 2022.
(Free Cash Flow is a non-GAAP measure. See reconciliation
below.)
Share Repurchases
2023 share repurchases totaled approximately 1.6 million shares
for approximately $12.0 million, an average purchase price of $7.57
per share.
Financial Condition and Liquidity
During the fourth quarter 2023, Helix issued the 2029 Notes
receiving proceeds, net of discounts and issuance costs, of $291.1
million and used a portion of the proceeds to purchase
approximately $159.8 million principal amount of the 2026 Notes for
approximately $229.7 million in cash and 1.5 million shares of
Helix common stock. Helix also settled a proportionate amount of
the capped calls that were hedging the 2026 Notes and received
approximately $15.6 million.
Cash and cash equivalents were $332.2 million on December 31,
2023. Available capacity under our ABL facility on December 31,
2023, was $99.3 million, resulting in total liquidity of $431.5
million. Consolidated long-term debt increased to $361.7 million on
December 31, 2023, from $227.3 million on September 30, 2023.
Consolidated Net Debt on December 31, 2023, was $29.5 million. (Net
Debt is a non-GAAP measure. See reconciliation below.)
Conference Call Information
Further details are provided in the presentation for Helix’s
quarterly teleconference to review its fourth quarter and full year
2023 results (see the "For the Investor" page of Helix's website,
www.helixesg.com). The teleconference, scheduled for Tuesday,
February 27, 2024, at 9:00 a.m. Central Time, will be audio webcast
live from the "For the Investor" page of Helix’s website. Investors
and other interested parties wishing to participate in the
teleconference may join by dialing 1-800-952-1718 for participants
in the United States and 1-212-231-2900 for international
participants. The passcode is "Staffeldt." A replay of the webcast
will be available on the "For the Investor" page of Helix's website
by selecting the "Audio Archives" link beginning approximately two
hours after the completion of the event.
About Helix
Helix Energy Solutions Group, Inc., headquartered in Houston,
Texas, is an international offshore energy services company that
provides specialty services to the offshore energy industry, with a
focus on well intervention, robotics and full field decommissioning
operations. Our services are key in supporting a global energy
transition by maximizing production of existing oil and gas
reserves, decommissioning end-of-life oil and gas fields and
supporting renewable energy developments. For more information
about Helix, please visit our website at www.helixesg.com.
Non-GAAP Financial Measures
Management evaluates operating performance and financial
condition using certain non-GAAP measures, primarily EBITDA,
Adjusted EBITDA, Free Cash Flow and Net Debt. We define EBITDA as
earnings before income taxes, net interest expense, gains and
losses on equity investments, net other income or expense, and
depreciation and amortization expense. Non-cash impairment losses
on goodwill and other long-lived assets are also added back if
applicable. To arrive at our measure of Adjusted EBITDA, we exclude
gains or losses on disposition of assets, acquisition and
integration costs, gains or losses on extinguishment of long-term
debt, the change in fair value of contingent consideration, and the
general provision (release) for current expected credit losses, if
any. We define Free Cash Flow as cash flows from operating
activities less capital expenditures, net of proceeds from asset
sales and insurance recoveries (related to property and equipment),
if any. Net Debt is calculated as long-term debt including current
maturities of long-term debt less cash and cash equivalents and
restricted cash.
We use EBITDA, Adjusted EBITDA, Free Cash Flow and Net Debt to
monitor and facilitate internal evaluation of the performance of
our business operations, to facilitate external comparison of our
business results to those of others in our industry, to analyze and
evaluate financial and strategic planning decisions regarding
future investments and acquisitions, to plan and evaluate operating
budgets, and in certain cases, to report our results to the holders
of our debt as required by our debt covenants. We believe that our
measures of EBITDA, Adjusted EBITDA, Free Cash Flow and Net Debt
provide useful information to the public regarding our operating
performance and ability to service debt and fund capital
expenditures and may help our investors understand and compare our
results to other companies that have different financing, capital
and tax structures. Other companies may calculate their measures of
EBITDA, Adjusted EBITDA, Free Cash Flow and Net Debt differently
from the way we do, which may limit their usefulness as comparative
measures. EBITDA, Adjusted EBITDA, Free Cash Flow and Net Debt
should not be considered in isolation or as a substitute for, but
instead are supplemental to, income from operations, net income,
cash flows from operating activities, or other income or cash flow
data prepared in accordance with GAAP. Users of this financial
information should consider the types of events and transactions
that are excluded from these measures. See reconciliation of the
non-GAAP financial information presented in this press release to
the most directly comparable financial information presented in
accordance with GAAP. We have not provided reconciliations of
forward-looking non-GAAP financial measures to comparable GAAP
measures due to the challenges and impracticability with estimating
some of the items without unreasonable effort, which amounts could
be significant.
Forward-Looking Statements
This press release contains forward-looking statements that
involve risks, uncertainties and assumptions that could cause our
results to differ materially from those expressed or implied by
such forward-looking statements. All statements, other than
statements of historical fact, are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995, including, without limitation, any statements regarding:
our plans, strategies and objectives for future operations; any
projections of financial items including projections as to guidance
and other outlook information; future operations expenditures; our
ability to enter into, renew and/or perform commercial contracts;
the spot market; our current work continuing; visibility and future
utilization; our protocols and plans; energy transition or energy
security; our spending and cost management efforts and our ability
to manage changes; oil price volatility and its effects and
results; our ability to identify, effect and integrate
acquisitions, joint ventures or other transactions, including the
integration of the Alliance acquisition and the earn-out payable in
connection therewith and any subsequently identified legacy issues
with respect thereto; developments; any financing transactions or
arrangements or our ability to enter into such transactions or
arrangements; our sustainability initiatives; future economic
conditions or performance; our share repurchase program or
execution; any statements of expectation or belief; and any
statements of assumptions underlying any of the foregoing.
Forward-looking statements are subject to a number of known and
unknown risks, uncertainties and other factors that could cause
results to differ materially from those in the forward-looking
statements, including but not limited to market conditions and the
demand for our services; volatility of oil and natural gas prices;
results from acquired properties; our ability to secure and realize
backlog; the performance of contracts by customers, suppliers and
other counterparties; actions by governmental and regulatory
authorities; operating hazards and delays, which include delays in
delivery, chartering or customer acceptance of assets or terms of
their acceptance; the effectiveness of our sustainability
initiatives and disclosures; human capital management issues;
complexities of global political and economic developments;
geologic risks; and other risks described from time to time in our
filings with the Securities and Exchange Commission ("SEC"),
including our most recently filed Annual Report on Form 10-K, which
are available free of charge on the SEC's website at www.sec.gov.
We assume no obligation and do not intend to update these
forward-looking statements, which speak only as of their respective
dates, except as required by law.
HELIX ENERGY SOLUTIONS GROUP, INC. Comparative Condensed
Consolidated Statements of Operations
Three Months Ended Dec.
31,
Year Ended Dec. 31,
(in thousands, except per share data)
2023
2022
2023
2022
(unaudited) (unaudited) Net revenues
$
335,157
$
287,816
$
1,289,728
$
873,100
Cost of sales
285,879
256,452
1,089,372
822,484
Gross profit
49,278
31,364
200,356
50,616
Gain on disposition of assets, net
-
-
367
-
Acquisition and integration costs
-
(315
)
(540
)
(2,664
)
Change in fair value of contingent consideration
(10,927
)
(13,390
)
(42,246
)
(16,054
)
Selling, general and administrative expenses
(22,971
)
(22,787
)
(94,427
)
(76,753
)
Income (loss) from operations
15,380
(5,128
)
63,510
(44,855
)
Equity in earnings of investment
-
-
-
8,262
Net interest expense
(4,771
)
(4,333
)
(17,338
)
(18,950
)
Loss on extinguishment of long-term debt
(37,277
)
-
(37,277
)
-
Other income (expense), net
6,963
14,293
(3,590
)
(23,330
)
Royalty income and other
93
406
2,209
3,692
Income (loss) before income taxes
(19,612
)
5,238
7,514
(75,181
)
Income tax provision
8,721
2,529
18,352
12,603
Net income (loss)
$
(28,333
)
$
2,709
$
(10,838
)
$
(87,784
)
Earnings (loss) per share of common stock: Basic
$
(0.19
)
$
0.02
$
(0.07
)
$
(0.58
)
Diluted
$
(0.19
)
$
0.02
$
(0.07
)
$
(0.58
)
Weighted average common shares outstanding: Basic
150,580
151,425
150,917
151,276
Diluted
150,580
151,425
150,917
151,276
Comparative Condensed Consolidated Balance Sheets
Dec. 31, 2023 Dec. 31, 2022 (in thousands)
(unaudited)
ASSETS Current Assets: Cash and
cash equivalents
$
332,191
$
186,604
Restricted cash
-
2,507
Accounts receivable, net
280,427
212,779
Other current assets
85,223
58,699
Total Current Assets
697,841
460,589
Property and equipment, net
1,572,849
1,641,615
Operating lease right-of-use assets
169,233
197,849
Deferred recertification and dry dock costs, net
71,290
38,778
Other assets, net
44,823
50,507
Total Assets
$
2,556,036
$
2,389,338
LIABILITIES AND SHAREHOLDERS' EQUITY Current
Liabilities: Accounts payable
$
134,552
$
135,267
Accrued liabilities
203,112
73,574
Current maturities of long-term debt
48,292
38,200
Current operating lease liabilities
62,662
50,914
Total Current Liabilities
448,618
297,955
Long-term debt
313,430
225,875
Operating lease liabilities
116,185
154,686
Deferred tax liabilities
110,555
98,883
Other non-current liabilities
66,248
95,230
Shareholders' equity
1,501,000
1,516,709
Total Liabilities and Equity
$
2,556,036
$
2,389,338
Helix Energy Solutions Group, Inc. Reconciliation of
Non-GAAP Measures Three Months Ended
Year Ended (in thousands, unaudited)
12/31/2023
12/31/2022 9/30/2023 12/31/2023
12/31/2022 Reconciliation
from Net Income (Loss) to Adjusted EBITDA: Net income
(loss)
$
(28,333
)
$
2,709
$
15,560
$
(10,838
)
$
(87,784
)
Adjustments: Income tax provision
8,721
2,529
8,337
18,352
12,603
Net interest expense
4,771
4,333
4,152
17,338
18,950
Other (income) expense, net
(6,963
)
(14,293
)
8,257
3,590
23,330
Depreciation and amortization
44,103
40,096
43,249
164,116
142,686
Gain on equity investment
-
-
-
-
(8,262
)
EBITDA
22,299
35,374
79,555
192,558
101,523
Adjustments: Gain on disposition of assets, net
-
-
-
(367
)
-
Acquisition and integration costs
-
315
-
540
2,664
Change in fair value of contingent consideration
10,927
13,390
16,499
42,246
16,054
General provision for current expected credit losses
129
90
331
1,149
781
Loss on extinguishment of long-term debt
37,277
-
-
37,277
-
Adjusted EBITDA
$
70,632
$
49,169
$
96,385
$
273,403
$
121,022
Free Cash Flow:
Cash flows from operating activities
$
94,737
$
49,712
$
31,611
$
152,457
$
51,108
Less: Capital expenditures, net of proceeds from asset sales and
insurance recoveries
(2,859
)
(28,514
)
(8,245
)
(18,659
)
(33,504
)
Free Cash Flow
$
91,878
$
21,198
$
23,366
$
133,798
$
17,604
Net Debt:
Long-term debt including current maturities
$
361,722
$
264,075
$
227,257
$
361,722
$
264,075
Less: Cash and cash equivalents and restricted cash
(332,191
)
(189,111
)
(168,370
)
(332,191
)
(189,111
)
Net Debt
$
29,531
$
74,964
$
58,887
$
29,531
$
74,964
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240226148615/en/
Erik Staffeldt, Executive Vice President and CFO email:
estaffeldt@helixesg.com Ph: 281-618-0465
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