HERCULES OFFSHORE, INC. AND SUBSIDIARIES
SELECTED FINANCIAL AND OPERATING DATA
(Dollars in thousands, except per day amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
Domestic Contract Drilling Services
Segment:
Number of rigs (as of end of period) 6 7 6 7
Operating days 375 494 849 876
Available days 546 524 1,086 974
Utilization (1) 68.7% 94.3% 78.2% 89.9%
Average revenue per rig per
day(2) $75,531 $77,513 $83,812 $74,530
Average operating expense per rig
per day(3) $25,455 $23,318 $25,287 $23,949
Revenues $28,325 $38,291 $71,156 $65,288
Operating expenses, excluding
depreciation and amortization $13,899 $12,219 $27,462 $23,326
Depreciation and amortization
expense $2,691 $2,089 $5,252 $3,741
General and administrative
expenses, excluding depreciation
and amortization $1,611 $1,587 $3,553 $3,373
Operating income $10,124 $22,396 $34,889 $34,848
International Contract Drilling
Services Segment:
Number of rigs (as of end of period) 3 2 3 2
Operating days 179 33 359 33
Available days 182 37 362 37
Utilization(1) 98.4% 89.2% 99.2% 89.2%
Average revenue per rig per
day(2) $109,719 $129,577 $112,857 $129,577
Average operating expense per rig
per day(3) $40,305 $43,320 $40,659 $43,320
Revenues $19,640 $4,276 $40,516 $4,276
Operating expenses, excluding
depreciation and amortization $7,335 $1,603 $14,718 $1,603
Depreciation and amortization
expense $1,363 $251 $2,731 $251
General and administrative
expenses, excluding
depreciation and amortization $1,015 $472 $1,545 $507
Operating income $9,927 $1,950 $21,522 $1,915
Domestic Marine Services Segment:
Number of liftboats (as of end of
period) 47 47 47 47
Operating days 2,980 2,802 5,647 5,652
Available days 4,186 3,699 8,285 7,157
Utilization(1) 71.2% 75.8% 68.2% 79.0%
Average revenue per liftboat per
day(2) $12,482 $10,765 $12,378 $9,865
Average operating expense per
liftboat per day(3) $3,736 $2,935 $3,534 $2,801
Revenues $37,195 $30,163 $69,898 $55,760
Operating expenses, excluding
depreciation and amortization $15,639 $10,857 $29,279 $20,050
Depreciation and amortization
expense $6,192 $4,910 $12,262 $8,888
General and administrative
expenses, excluding depreciation
and amortization $539 $417 $1,077 $1,162
Operating income $14,825 $13,979 $27,280 $25,660
International Marine Services Segment:
Number of liftboats (as of end of
period) 18 4 18 4
Operating days 1,252 355 2,414 712
Available days 1,547 364 3,021 724
Utilization(1) 80.9% 98.0% 79.9% 98.0%
Average revenue per liftboat per
day(2) $11,090 $10,047 $11,573 $9,980
Average operating expense per
liftboat per day(3) $4,862 $4,346 $4,788 $4,445
Revenues $13,884 $3,567 $27,938 $7,106
Operating expenses, excluding
depreciation and amortization $7,523 $1,581 $14,464 $3,217
Depreciation and amortization
expense $1,938 $274 $3,642 $553
General and administrative
expenses, excluding depreciation
and amortization $882 $593 $1,832 $1,354
Operating income $3,541 $1,119 $8,000 $1,982
Total Company:
Revenues $99,044 $76,297 $209,508 $132,430
Operating expenses, excluding
depreciation and amortization $44,396 $26,260 $85,923 $48,196
Depreciation and amortization
expense $12,209 $7,551 $23,939 $13,485
General and administrative
expenses, excluding depreciation
and amortization $9,335 $6,601 $18,498 $13,187
Operating income $33,104 $35,885 $81,148 $57,562
Interest expense $(1,379) $(2,163) $(3,469) $(4,249)
Gain on disposal of asset $-- $-- $-- $29,580
Loss on early retirement of debt $(870) $-- $(870) $--
Other income $1,246 $1,520 $2,521 $1,823
Income before income taxes $32,101 $35,242 $79,330 $84,716
Income tax provision $(8,635) $(12,309) $(22,473)$(30,871)
Net income $23,466 $22,933 $56,857 $53,845
(1) Utilization is defined as the total number of days our rigs or
liftboats, as applicable, were under contract, known as operating
days, in the period as a percentage of the total number of available
days in the period. Days during which our rigs and liftboats were
undergoing major refurbishments, upgrades or construction are not
counted as available days. Days during which our liftboats are in
the shipyard undergoing drydocking or inspection are considered
available days for the purposes of calculating utilization.
(2) Average revenue per rig or liftboat per day is defined as revenue
earned by our rigs or liftboats, as applicable, in the period
divided by the total number of operating days for our rigs or
liftboats, as applicable, in the period. Included in Domestic
Contract Drilling Services revenue is a total of US$0.1 million
related to amortization of contract specific capital expenditures
reimbursed by the customer for the three and six months ended June
30, 2007, respectively. There was no such revenue in the three and
six months ended June 30, 2006. Included in International Contract
Drilling Services revenue is a total of US$0.7 million and US$2.5
million related to amortization of deferred mobilization revenue and
contract specific capital expenditures reimbursed by the customer
for the three and six months ended June 30, 2007, respectively, and
US$0.1 million for both the three and six months ended June 30,
2006.
(3) Average operating expense per rig or liftboat per day is defined as
operating expenses, excluding depreciation and amortization,
incurred by our rigs or liftboats, as applicable, in the period
divided by the total number of available days in the period. We use
available days to calculate average operating expense per rig or
liftboat per day rather than operating days, which are used to
calculate average revenue per rig or liftboat per day, because we
incur operating expenses on our rigs and liftboats even when they
are not under contract and earning a dayrate. In addition, the
operating expenses we incur on our rigs and liftboats per day when
they are not under contract are typically lower than the per-day
expenses we incur when they are under contract. Included in
International Contract Drilling Services operating expense is a
total of US$0.4 million and US$1.6 million related to amortization
of deferred mobilization expenses for the three month and six months
ended June 30, 2007, respectively.
Hercules Offshore, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(In thousands, except per share data)
We report our financial results in accordance with generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP performance measures and ratios may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. One such non-GAAP financial measure we may present from time to time is operating income or net income excluding certain charges or amounts. This adjusted income amount is not a measure of financial performance under GAAP. Accordingly, it should not be considered as a substitute for operating income, net income or other income data prepared in accordance with GAAP. See the table below for supplemental financial data and corresponding reconciliations to GAAP financial measures for the three and six months ended June 30, 2007, and the six months ended June 30, 2006. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. The non-GAAP measure included in this press release has been reconciled to the nearest GAAP measure in the following table:
Three Months Six Months Ended
Ended June 30, June 30, June 30,
2007 2007 2006
Operating Income:
GAAP Operating Income $33,104 $81,148 $57,562
Adjustment 505 (a) 505 (a) -
Non-GAAP Operating Income $33,609 $81,653 $57,562
Other Income (Expense):
GAAP Other Income (Expense) $(1,003) $(1,818) $27,154
Adjustment 564 (a) 564 (a) (29,580)(b)
Non-GAAP Other Income (Expense) $(439) $(1,254) $(2,426)
Provision for Income Taxes:
GAAP Provision for Income
Taxes $(8,635) $(22,473) $(30,871)
Tax Impact of Adjustment (374)(a) (374)(a) 10,945 (b)
Non-GAAP Provision for Income
Taxes $(9,009) $(22,847) $(19,926)
Net Income:
GAAP Net Income $23,466 $56,857 $53,845
Total Adjustment, Net of Tax 695 (a) 695 (a) (18,635)(b)
Non-GAAP Net Income $24,161 $57,552 $35,210
Diluted Earnings per Share:
GAAP Diluted Earnings per Share $0.72 $1.74 $1.70
Adjustment per Share 0.02 (a) 0.02 (a) (0.59)(b)
Non-GAAP Diluted Earnings per
Share $0.74 $1.76 $1.11
(a) These amounts represent US$0.5 million of severance related costs
incurred in anticipation of the recent acquisition and a loss of
US$0.6 million related to the early retirement of debt, net of a
US$0.3 million interest rate swap gain. On an after-tax basis, these
Adjustments approximated US$0.7 million, or two cents per diluted
share, for the three and six months ended June 30, 2007.
(b) This amount represents a gain on an after-tax basis of US$18.6
million related to an insurance claim settlement on the loss of Rig
25.
TODCO
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
OPERATING REVENUES $229,366 $226,052 $471,262 $409,688
COSTS AND EXPENSES
Operating expenses excluding
depreciation and amortization 138,261 140,569 253,013 247,874
Depreciation and amortization 22,318 21,888 44,282 44,226
General and administrative,
excluding depreciation and
amortization 13,329 10,688 26,613 20,369
173,908 173,145 323,908 312,469
OPERATING INCOME 55,458 52,907 147,354 97,219
OTHER INCOME (EXPENSE)
Interest income 3,180 2,667 5,989 4,766
Interest expense (685) (729) (1,362) (1,439)
Gain on disposal of assets 1,715 1,397 7,181 2,269
Impairment loss on long-lived
assets -- (415) -- (415)
Other, net 434 (283) 454 (48)
INCOME BEFORE INCOME TAXES 60,102 55,544 159,616 102,352
INCOME TAX PROVISION (24,323) (20,849) (63,106) (38,498)
INCOME BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE 35,779 34,695 96,510 63,854
Cumulative effect of change in
accounting principle, net of tax -- -- -- 101
NET INCOME $35,779 $34,695 $96,510 $63,955
EARNINGS PER SHARE:
Basic $0.62 $0.56 $1.68 $1.04
Diluted $0.62 $0.56 $1.66 $1.03
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic 57,554 61,621 57,535 61,487
Diluted 58,045 62,066 57,973 61,960
(CONTINUA)
Andalucía
Aragón
Cantabria
Castilla-La Mancha
Castilla y León
Catalunya
Extremadura
Galicia
Islas Canarias
Islas Baleares
Madrid
País Vasco
La Rioja
C. Valenciana
Navarra
Asturias
Murcia
Ceuta y Melilla
