NOVEMBER 5, 2013 — Offshore service vessel giant Tidewater Inc. (NYSE:TDW) announced second quarter net earnings for the period ended September 30, 2013, of $54.2 million, or $1.09 per common share, on revenues of $367.9 million. For the same quarter last year, net earnings were $41.4 million, or $0.83 per common share, on revenues of $311.9 million. The immediately preceding quarter ended June 30, 2013, had net earnings of $30.1 million, or $0.61 per common share, on revenues of $334.1 million.
Net earnings for the September 30, 2013 quarter reflect a $4.1 million ($3.0 million after tax, or $0.06 per common share) loss on early extinguishment of debt associated with bonds issued in April 2013 by Troms Offshore Supply AS, a wholly-owned subsidiary of the Company acquired in June 2013.
How does all that stack up against analyst's estimates?
Cowan and Company says it believe the company's earnings release has positive implications for the stock. EPS of $1.15 was ahead of both the firm's $0.95 estimate and consensus of $0.88. Fleet-wide utilization of 73.2% was 475 bps better than Cowan's estimate as the Towing Supply/Supply segment achieved higher activity than forecast.
Tidewater reported EPS from continuing operations of $1.15 compared with Cowan's $0.95 estimate and the consensus of $0.88. Results exclude a $0.06/sh charge related to early debt retirement associated with the Troms acquisition. A lower-than-expected tax rate (22.7% vs. our 24% forecast) contributed $0.02 to the quarter.
Total revenue of $368 million came in slightly ahead of Cowan's $360 million estimate primarily driven by strength in Sub-Saharan Africa/Europe. Total utilization of 73.2% was up from 68.8% in F1Q and was 475 bps above Cowan's 68.4% estimate, largely due to higher utilization in the Towing Supply/Supply segment (66.3% vs. 58.9% forecast). Worldwide dayrates of $17,603 were just below Cowan's $18,034 estimate; deepwater dayrates of $30,481 surpassed the firm's $29,324 estimate but were offset by lower TS/S rates ($14,389 vs. $15,460).
Total vessel operating costs of $199 million were below the Cowan $204 million forecast; R& million costs of $38.7 million were in-line with its $39.0 estimate. Insurance costs of $3.9 million were below Cowan's $6.5 million forecast, likely due to the timing of payments.
Americas revenue of $102 million was slightly ahead of Cowan's $100 million estimate as average dayrates of $19,974 beat its $19,167 forecast. Utilization of 63.9% was ahead of the firm's 60.0% forecast, driven largely by the Towing Supply/Supply segment.
Asia Pacific revenues of $37 million were lower than Cowan's $39.6 million estimate. Higher than forecast utilization (76% vs. 64%) was more than offset by lower than expected dayrates ($19,184 vs. $20,542).