Tidewater Reports Results For The Three Months Ended December 31, 2017 and The Nine Month Transition Period From April 1, 2017 through December 31, 2017

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Mar 14, 2018, 05:24 ET

HOUSTON, March 14, 2018 /PRNewswire/ -- Tidewater Inc. (NYSE:TDW) announced today a net loss for the three months ended December 31, 2017 (Successor), of $23.6 million, or $1.02 per common share, on revenues of $104.5 million. For the five month period from August 1, 2017 through December 31, 2017 (Successor), the net loss was $39.3 million, or $1.82 per common share, on revenues of $178.8 million.

As more fully explained in the company's Form 10-K for the nine month transition period ended December 31, 2017, upon emergence from Chapter 11 bankruptcy on July 31, 2017, the company adopted fresh start accounting in accordance with applicable accounting and reporting regulations, which resulted in the company becoming a new entity for financial reporting purposes on July 31, 2017. References herein to "Successor" relate to the financial position and results of operations of the reorganized company subsequent to July 31, 2017, while references to "Predecessor" relate to the financial position and results of operations of the company through July 31, 2017.

Included in the $23.6 million ($1.02 per common share) net loss for the three months ending December 31, 2017 (Successor) were the following:

$16.8 million ($0.72 per common share) in non-cash asset impairment charges that resulted from impairment reviews undertaken during the three months ended December 31, 2017.
$2.4 million ($0.10 per common share) of reorganization items related to the company's Chapter 11 proceedings.

Included in the $39.3 million ($1.82 per common share) net loss for the five month period from August 1, 2017 through December 31, 2017 (Successor) were the following:

$16.8 million ($0.78 per share) in non-cash asset impairment charges that resulted from impairment reviews undertaken during the five month period ended December 31, 2017.
$4.3 million ($0.20 per share) of reorganization items related to the company's Chapter 11 proceedings.

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) for the three months ended December 31, 2017 (Successor), which excludes reorganization items and asset impairment charges, but includes $2.6 million of stock-based compensation expense, was $13.3 million. EBITDA for the five month period from August 1, 2017 through December 31, 2017 (Successor), which excludes reorganization items and asset impairment charges, but includes $3.7 million of stock-based compensation expense and $1.2 million of vessel operating lease expense for vessels returned to their respective owners in connection with the company's Plan of Reorganization, was $17.7 million. (See disclosures related to Non-GAAP measures in other fleet and financial data beginning on page 13 herein.)

John Rynd, President and Chief Executive Officer of Tidewater stated, "The extended weakness in the offshore supply vessel market continued to be reflected in our fourth quarter financial results. While improvements in oil prices are encouraging, our customers have not yet committed to a meaningful increase in offshore exploration and development spending. As we continue to navigate a market that we expect to remain challenging in 2018, the management team remains focused on executing its post-restructuring business plan, including additional cost reductions, a targeted rationalization of the owned fleet, preserving a low-leverage balance sheet and maintaining a strong liquidity position."

Tom Bates, Chairman of the Board of Directors, added, "I would like to again thank Larry Rigdon for his leadership of the business during his tenure as interim President and Chief Executive Officer. Significant progress has been made in achieving the company's near-term objective of reaching a cash flow breakeven. John, Larry and I look forward to working with our fellow directors on behalf of all Tidewater stakeholders."

Tidewater will hold a conference call to discuss results for the three months ended December 31, 2017 on Thursday, March 15, 2018, at 10:00 a.m. Central Time. Investors and interested parties may listen to the teleconference via telephone by calling 1-888-771-4371 if calling from the U.S. or Canada (1-847-585-4405 if calling from outside the U.S.) and ask for the "Tidewater" call just prior to the scheduled start. A replay of the conference call will be available beginning at 12:00 p.m. Central Time on March 15, 2018, and will continue until 11:59 p.m. Central Time on March 17, 2018. To hear the replay, call 1-888-843-7419 (1-630-652-3042 if calling from outside the U.S.). The conference call ID number is 46593166.

A simultaneous webcast of the conference call will be available online at the Tidewater Inc. website, (www.tdw.com). The online replay will be available until April 15, 2018.

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 involve 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 recent Forms 10-Q and 10-K.

Tidewater owns and operates one of the largest fleets of Offshore Support Vessels in the industry, with over 60 years of experience supporting offshore energy exploration and production activities worldwide.

Note: all per-share amounts are stated on a diluted basis.

Financial information is displayed on the next page.

TIDEWATER INC.
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
(In thousands, except share and per share data)


	Successor		Predecessor
	Three Months		Three Months
	Ended		Ended
	December 31, 2017		December 31, 2016
Revenues:
Vessel revenues	$	101,313		125,120
Other operating revenues		3,140		4,095
		104,453		129,215
Costs and expenses:
Vessel operating costs		68,201		82,358
Costs of other operating revenues		1,519		2,714
General and administrative (A)		30,373		34,151
Vessel operating leases		91		8,441
Depreciation and amortization		12,195		41,302
Gain on asset dispositions, net		(6,612)		(6,139)
Asset impairments		16,777		253,422
		122,544		416,249
Operating loss		(18,091)		(287,034)
Other income (expenses):
Foreign exchange gain (loss)		(349)		2,970
Equity in net earnings of unconsolidated companies		825		1,557
Interest income and other		1,898		1,437
Reorganization items (B)		(2,419)		—
Interest and other debt costs		(7,769)		(18,587)
		(7,814)		(12,623)
Loss before income taxes		(25,905)		(299,657)
Income tax (benefit) expense		(2,706)		(2,884)
Net loss	$	(23,199)		(296,773)
Less: Net income (loss) attributable to noncontrolling interests		374		903
Net loss attributable to Tidewater Inc.	$	(23,573)		(297,676)
Basic loss per common share	$	(1.02)		(6.32)
Diluted loss per common share	$	(1.02)		(6.32)
Weighted average common shares outstanding (C)		23,137,909		47,068,079
Dilutive effect of stock options and restricted stock		—		—
Adjusted weighted average common shares		23,137,909		47,068,079

Note (A): Restructuring-related professional services costs for the three months ended December 31, 2017 (Successor) are included in reorganization items. Restructuring-related professional services costs included in general and administrative expenses for the three months ended December 31, 2016 (Predecessor), were $5.2 million.

Note (B): Restructuring-related professional services and sale leaseback redelivery costs included in reorganization items for the three months ended December 31, 2017 (Successor) were $2.0 million and $0.4 million, respectively.

Note (C): Weighted average shares outstanding include 924,125 shares issuable upon the exercise of Jones Act-related New Creditor Warrants held by U.S. citizens.

TIDEWATER INC.
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
(In thousands, except share and per share data)


	Successor		Predecessor
	Period from		Period from
	August 1, 2017		April 1, 2017		Nine Months
	through		through		Ended
	December 31, 2017		July 31, 2017		December 31, 2016
Revenues:
Vessel revenues	$	171,884		146,597		426,911
Other operating revenues		6,869		4,772		13,951
		178,753		151,369		440,862
Costs and expenses:
Vessel operating costs		120,502		116,438		278,326
Costs of other operating revenues		3,792		2,348		10,040
General and administrative (D)		46,619		41,832		104,152
Vessel operating leases		1,215		6,165		25,323
Depreciation and amortization		20,337		47,447		129,699
Gain on asset dispositions, net		(6,616)		(3,561)		(18,035)
Asset impairments		16,777		184,748		419,870
		202,626		395,417		949,375
Operating loss		(23,873)		(244,048)		(508,513)
Other income (expenses):
Foreign exchange loss		(407)		(3,181)		(2,302)
Equity in net earnings of unconsolidated companies		2,130		4,786		2,869
Interest income and other		2,771		2,384		3,605
Reorganization items (E)		(4,299)		(1,396,905)		—
Interest and other debt costs		(13,009)		(11,179)		(54,018)
		(12,814)		(1,404,095)		(49,846)
Loss before income taxes		(36,687)		(1,648,143)		(558,359)
Income tax (benefit) expense		2,039		(1,234)		4,680
Net loss	$	(38,726)		(1,646,909)		(563,039)
Less: Net income attributable to noncontrolling interests		540		—		2,224
Net loss attributable to Tidewater Inc.	$	(39,266)		(1,646,909)		(565,263)
Basic loss per common share	$	(1.82)		(34.95)		(12.01)
Diluted loss per common share	$	(1.82)		(34.95)		(12.01)
Weighted average common shares outstanding (F)		21,539,143		47,121,330		47,067,887
Dilutive effect of stock options and restricted stock		—		—		—
Adjusted weighted average common shares		21,539,143		47,121,330		47,067,887

Note (D): Restructuring-related professional services costs for the five month period from August 1, 2017 through December 31, 2017 (Successor) are included in reorganization items. Restructuring-related professional services costs included in general and administrative expenses for the four month period from April 1, 2017 through July 31, 2017 (Predecessor), and for the nine months ended December 31, 2016 (Predecessor), were $6.7 million and $12.2 million, respectively.

Note (E): Reorganization items for the five month period from August 1, 2017 through December 31, 2017 (Successor) of $4.3 million include (i) $1.6 million related to re-delivery of sale leaseback vessels to their respective owners and (ii) $2.7 million of restructuring-related professional services costs.

Reorganization items for the four month period from April 1, 2017 through July 31, 2017 (Predecessor) of $1.4 billion include (i) $1.8 billion of fresh start accounting adjustments, (ii) the establishment of a reserve in regards to sale leaseback claims of $323.6 million and the write-off of leasehold improvements to vessels underlying sale leaseback transactions of $1.7 million, partially offset by the recognition of sale leaseback-related deferred gains of $105.9 million and accrued liabilities associated with the recognition of lease expense on a straight-line basis of $11.3 million, (iii) $94.8 million of make-whole claims on the Senior Notes and $5.2 million of debt issue costs and (iv) restructuring-related professional services costs incurred subsequent to the Petition Date of $28.0 million. Offsetting these reorganization charges is a gain on settlement of liabilities subject to compromise of $767.6 million.

Note (F): Weighted average shares outstanding include 924,125 shares issuable upon the exercise of Jones Act-related New Creditor Warrants held by U.S. citizens.

TIDEWATER INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and par value data)

	Successor		Predecessor
	December 31,		March 31,
ASSETS	2017		2017
Current assets:
Cash and cash equivalents	$	432,035		706,404
Restricted cash		21,300		—
Trade and other receivables, less allowance for doubtful accounts of $1,800 and $16,165 as of December 31, 2017 and March 31, 2017, respectively		114,184		123,262
Due from affiliate		230,315		262,652
Marine operating supplies		28,220		30,560
Other current assets		19,130		18,409
Total current assets		845,184		1,141,287
Investments in, at equity, and advances to unconsolidated companies		29,216		45,115
Net properties and equipment		837,520		2,864,762
Deferred drydocking and survey costs		3,208		—
Other assets		31,052		139,535
Total assets	$	1,746,180		4,190,699

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	38,497		31,599
Accrued expenses		54,806		78,121
Due to affiliate		99,448		132,857
Accrued property and liability losses		2,585		3,583
Current portion of long-term debt		5,103		2,034,124
Other current liabilities		19,693		48,429
Total current liabilities		220,132		2,328,713
Long-term debt		443,057		—
Deferred income taxes		—		46,013
Accrued property and liability losses		2,471		10,209
Other liabilities and deferred credits		58,576		154,705

Commitments and Contingencies

Equity:
Predecessor Common stock of $0.10 par value, 125,000,000 shares authorized, 47,121,304 shares issued and outstanding at March 31, 2017		—		4,712
Predecessor Additional paid-in capital		—		165,221
Successor Common stock of $0.001 par value, 125,000,000 shares authorized, 22,115,916 shares issued and outstanding at December 31, 2017		22		—
Successor Additional paid-in capital		1,059,120		—
Retained (deficit) earnings		(39,266)		1,475,329
Accumulated other comprehensive loss		(147)		(10,344)
Total stockholders' equity		1,019,729		1,634,918
Noncontrolling interests		2,215		16,141
Total equity		1,021,944		1,651,059
Total liabilities and equity	$	1,746,180		4,190,699

TIDEWATER INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS


	Successor		Predecessor
	Three Months		Three Months
	Ended		Ended
(In thousands)	December 31, 2017		December 31, 2016
Net loss	$	(23,199)		(296,773)
Other comprehensive income:
Unrealized gains (losses) on available for sale securities, net of tax of $0 and $0		174		(73)
Change in loss on derivative contract, net of tax of $0 and $0		—		70
Changes in supplemental executive retirement plan liability, net of tax of $0 and $0		(1,582)		—
Changes in pension plan minimum liability, net of tax of $0 and $0		(357)		—
Change in other benefit plan minimum liability, net of tax of $0 and $0		1,536		—
Total comprehensive loss	$	(23,428)		(296,776)

TIDEWATER INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS


	Successor		Predecessor
	Period from		Period from
	August 1, 2017		April 1, 2017		Nine Months
	through		through		Ended
(In thousands)	December 31, 2017		July 31, 2017		December 31, 2016
Net loss	$	(38,726)		(1,646,909)		(563,039)
Other comprehensive income:
Unrealized gains on available for sale securities, net of tax of $0, $0 and $0		256		163		207
Change in loss on derivative contract, net of tax of $0, $0 and $0		—		—		213
Changes in supplemental executive retirement plan liability, net of tax of $0, $0 and $0		(1,582)		(536)		—
Changes in pension plan minimum liability, net of tax of $0, $0 and $0		(357)		(594)		—
Change in other benefit plan minimum liability, net of tax of $0, $0 and $0		1,536		(1,468)		—
Total comprehensive loss	$	(38,873)		(1,649,344)		(562,619)

TIDEWATER INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS


	Successor		Predecessor
	Period from		Period from
	August 1, 2017		April 1, 2017		Nine Months
	through		through		Ended
(In thousands)	December 31, 2017		July 31, 2017		December 31, 2016
Operating activities:
Net loss (G)	$	(38,726)		(1,646,909)		(563,039)
Adjustments to reconcile net loss to net cash provided by operating activities:
Reorganization items (non-cash)		—		1,368,882		—
Depreciation and amortization		20,131		47,447		129,699
Amortization of deferred drydocking and survey costs		206		—		—
Amortization of debt premiums and discounts		(715)		—		—
Provision for deferred income taxes		—		(5,543)		—
Gain on asset dispositions, net		(6,616)		(3,561)		(18,035)
Asset impairments		16,777		184,748		419,870
Changes in investments in, at equity, and advances to unconsolidated companies		(4,531)		(4,252)		(2,551)
Compensation expense - stock-based		3,731		1,707		4,166
Changes in operating assets and liabilities, net:
Trade and other receivables		2,312		6,286		53,778
Changes in due to/from affiliate, net		(2,373)		1,301		(4,132)
Marine operating supplies		1,229		88		2,693
Other current assets		10,305		(1,840)		(6,065)
Accounts payable		(1,259)		8,157		1,341
Accrued expenses		(24,896)		17,245		(27,954)
Accrued property and liability losses		(176)		(822)		253
Other current liabilities		(4,026)		(2,337)		(22,798)
Other liabilities and deferred credits		(1,089)		2,884		(4,541)
Other, net		(5,830)		4,932		(3,014)
Net cash used in operating activities		(35,546)		(21,587)		(40,329)
Cash flows from investing activities:
Proceeds from sales of assets		32,742		2,172		12,333
Additions to properties and equipment		(9,834)		(2,265)		(17,144)
Payments related to novated vessel construction contract		—		5,272		—
Refunds from cancelled vessel construction contracts		—		—		25,565
Net cash provided by investing activities		22,908		5,179		20,754
Cash flows from financing activities:
Principal payment on long-term debt		(1,176)		(5,124)		(7,337)
Cash payments to creditors pursuant to the plan of reorganization		(93,719)		(122,806)		—
Cash received for issuance of common stock		2		—		—
Other		—		(1,200)		(1,722)
Net cash used in financing activities		(94,893)		(129,130)		(9,059)
Net change in cash and cash equivalents		(107,531)		(145,538)		(28,634)
Cash and cash equivalents at beginning of period		560,866		706,404		678,438
Cash and cash equivalents at end of period	$	453,335		560,866		649,804
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest, net of amounts capitalized	$	8,223		1,577		62,469
Income taxes	$	4,654		4,740		24,749
Supplemental disclosure of non-cash investing activities:
Additions to properties and equipment	$	—		—		5,330

Note (G): Net loss includes restructuring-related professional services costs and costs related to the re-delivery of sale leaseback vessels to their respective owners for the five month period from August 1, 2017 through December 31, 2017 (Successor), the four month period from April 1, 2017 through July 31, 2017 (Predecessor), and for the nine months ended December 31, 2016 (Predecessor), of $4.3 million, $34.7 million and $12.2 million, respectively.

TIDEWATER INC.
CONSOLIDATED STATEMENTS OF EQUITY

							Accumulated
			Additional		Retained		other		Non
	Common		paid-in		earnings		comprehensive		controlling
(In thousands)	stock		capital		(deficit)		loss		interest		Total
Balance at March 31, 2016 (Predecessor)	$	4,707		166,604		2,135,075		(6,866)		6,034		2,305,554
Total comprehensive loss		—		—		(660,118)		(3,478)		10,107		(653,489)
Stock option activity		—		1,146		—		—		—		1,146
Amortization/cancellation of restricted stock units		5		(2,529)		372		—		—		(2,152)
Balance at March 31, 2017 (Predecessor)	$	4,712		165,221		1,475,329		(10,344)		16,141		1,651,059
Total comprehensive loss		—		—		(1,646,909)		(2,435)		—		(1,649,344)
Stock option expense		—		390		—		—		—		390
Cancellation/forfeiture of restricted stock units		—		1,254		—		—		—		1,254
Amortization of restricted stock units		—		2		—		—		—		2
Cash paid to noncontrolling interests		—		—		—		—		(1,200)		(1,200)
Balance at July 31, 2017 (Predecessor)	$	4,712		166,867		(171,580)		(12,779)		14,941		2,161
Cancellation of Predecessor equity		(4,712)		(166,867)		171,580		12,779		(13,266)		(486)
Balance at July 31, 2017 (Predecessor)	$	—		—		—		—		1,675		1,675

Issuance of Successor common stock and warrants	$	18		1,055,391		—		—		—		1,055,409

Balance at August 1, 2017 (Successor)	$	18		1,055,391		—		—		1,675		1,057,084
Total comprehensive loss		—		—		(39,266)		(147)		540		(38,873)
Issuance of common stock		4		(2)		—		—		—		2
Amortization/cancellation of restricted stock units		—		3,731		—		—		—		3,731
Balance at December 31, 2017 (Successor)	$	22		1,059,120		(39,266)		(147)		2,215		1,021,944

The company's vessel revenues and vessel operating costs and the related percentage of total vessel revenues, were as follows:

	Successor				Predecessor
	Three Months				Three Months
	Ended				Ended
	December 31, 2017				December 31, 2016
(In thousands)			%				%
Vessel revenues:
Americas	$	28,335		28%		45,577		36%
Middle East/Asia Pacific		23,176		23%		26,233		21%
Africa/Europe		49,802		49%		53,310		43%
Total vessel revenues	$	101,313		100%		125,120		100%
Vessel operating costs:
Crew costs	$	37,149		37%		43,384		35%
Repair and maintenance		7,709		7%		13,214		10%
Insurance and loss reserves		2,946		3%		2,142		2%
Fuel, lube and supplies		9,400		9%		7,782		6%
Other		10,997		11%		15,836		13%
Total vessel operating costs		68,201		67%		82,358		66%
Vessel operating margin (H)	$	33,112		33%		42,762		34%

	Successor				Predecessor
	Period from				Period from
	August 1, 2017				April 1, 2017				Nine Months
	through				through				Ended
	December 31, 2017				July 31, 2017				December 31, 2016
(In thousands)			%				%				%
Vessel revenues:
Americas	$	45,784		27%		40,848		28%		159,310		37%
Middle East/Asia Pacific		39,845		23%		36,313		25%		87,940		21%
Africa/Europe		86,255		50%		69,436		47%		179,661		42%
Total vessel revenues	$	171,884		100%		146,597		100%		426,911		100%
Vessel operating costs:
Crew costs	$	64,854		38%		56,653		39%		148,642		35%
Repair and maintenance		14,082		8%		23,040		16%		43,183		10%
Insurance and loss reserves		4,625		3%		3,949		3%		11,775		2%
Fuel, lube and supplies		16,390		9%		12,279		8%		28,730		7%
Other		20,551		12%		20,517		14%		45,996		11%
Total vessel operating costs		120,502		70%		116,438		80%		278,326		65%
Vessel operating margin (H)	$	51,382		30%		30,159		20%		148,585		35%

Note (H): Vessel operating margin equals vessel revenues less vessel operating costs and excludes general and administrative expenses, vessel operating leases and depreciation and amortization expenses. The following tables reconcile vessel operating margin as presented above to vessel operating profit (loss):

	Successor		Predecessor
	Three Months		Three Months
	Ended		Ended
(In thousands)	December 31, 2017		December 31, 2016
Vessel operating margin	$	33,112		42,762
General and administrative expenses - vessel operations		(19,946)		(20,608)
Vessel operating leases		(91)		(8,441)
Depreciation and amortization - vessel operations		(11,681)		(39,882)
Vessel operating profit (loss)	$	1,394		(26,169)

	Successor		Predecessor
	Period from		Period from
	August 1, 2017		April 1, 2017		Nine Months
	through		through		Ended
(In thousands)	December 31, 2017		July 31, 2017		December 31, 2016
Vessel operating margin	$	51,382		30,159		148,585
General and administrative expenses - vessel operations		(31,160)		(23,881)		(68,861)
Vessel operating leases		(1,215)		(6,165)		(25,323)
Depreciation and amortization - vessel operations		(19,344)		(45,604)		(124,232)
Vessel operating profit (loss)	$	(337)		(45,491)		(69,831)

The company's other operating profit (loss) consists of the following:

	Successor		Predecessor
	Three Months		Three Months
	Ended		Ended
(In thousands)	December 31, 2017		December 31, 2016
Other operating revenues	$	3,140		4,095
Costs of other marine revenues		(1,519)		(2,714)
General and administrative expenses - other operating activities		(401)		(410)
Depreciation and amortization - other operating activities		(415)		(855)
Other operating profit	$	805		116

	Successor		Predecessor
	Period from		Period from
	August 1, 2017		April 1, 2017		Nine Months
	through		through		Ended
(In thousands)	December 31, 2017		July 31, 2017		December 31, 2016
Other operating revenues	$	6,869		4,772		13,951
Costs of other marine revenues		(3,792)		(2,348)		(10,040)
General and administrative expenses - other operating activities		(636)		(409)		(1,659)
Depreciation and amortization - other operating activities		(827)		(1,139)		(3,575)
Other operating profit (loss)	$	1,614		876		(1,323)

The company's operating loss and other components of loss before income taxes and its related percentage of total revenues, were as follows:

	Successor				Predecessor
	Three Months				Three Months
	Ended				Ended
	December 31, 2017				December 31, 2016
(In thousands)			%				%
Vessel operating profit (loss):
Americas	$	1,052		1%		(6,242)		(5%)
Middle East/Asia Pacific		(493)		(<1%)		(8,368)		(6%)
Africa/Europe		835		<1%		(11,559)		(9%)
		1,394		1%		(26,169)		(20%)
Other operating profit (loss)		805		1%		116		(<1%)
		2,199		2%		(26,053)		(20%)

Corporate general and administrative expenses (I)		(10,026)		(10%)		(13,133)		(10%)
Corporate depreciation		(99)		(<1%)		(565)		(1%)
Corporate expenses		(10,125)		(10%)		(13,698)		(11%)

Gain on asset dispositions, net		6,612		6%		6,139		5%
Asset impairments		(16,777)		(15%)		(253,422)		(196%)
Operating loss	$	(18,091)		(17%)		(287,034)		(222%)
Foreign exchange gain (loss)		(349)		(<1%)		2,970		2%
Equity in net earnings of unconsolidated companies		825		<1%		1,557		1%
Interest income and other, net		1,898		2%		1,437		1%
Reorganization items (J)		(2,419)		(2%)		—		—
Interest and other debt costs		(7,769)		(8%)		(18,587)		(14%)
Loss before income taxes	$	(25,905)		(25%)		(299,657)		(232%)

Note (I): Restructuring-related professional services costs included in general and administrative expenses for the three months ended December 31, 2016 (Predecessor), were $5.2 million.

Note (J): Reorganization items for the three months ended December 31, 2017 (Successor) included $2.0 million of restructuring-related professional services and sale leaseback redelivery costs of $0.4 million.

	Successor				Predecessor
	Period from				Period from
	August 1, 2017				April 1, 2017				Nine Months
	through				through				Ended
	December 31, 2017				July 31, 2017				December 31, 2016
(In thousands)			%				%				%
Vessel operating profit (loss):
Americas	$	(1,599)		(1%)		(22,549)		(15%)		(11,745)		(3%)
Middle East/Asia Pacific		451		<1%		(1,434)		(1%)		(19,146)		(4%)
Africa/Europe		811		1%		(21,508)		(14%)		(38,940)		(9%)
		(337)		(<1%)		(45,491)		(30%)		(69,831)		(16%)
Other operating profit (loss)		1,614		1%		876		1%		(1,323)		(<1%)
		1,277		1%		(44,615)		(29%)		(71,154)		(16%)

Corporate general and administrative expenses (K)		(14,823)		(8%)		(17,542)		(12%)		(33,632)		(8%)
Corporate depreciation		(166)		(<1%)		(704)		(<1%)		(1,892)		(<1%)
Corporate expenses		(14,989)		(8%)		(18,246)		(12%)		(35,524)		(8%)

Gain on asset dispositions, net		6,616		3%		3,561		2%		18,035		4%
Asset impairments		(16,777)		(9%)		(184,748)		(122%)		(419,870)		(95%)
Operating loss	$	(23,873)		(13%)		(244,048)		(161%)		(508,513)		(115%)
Foreign exchange loss		(407)		(<1%)		(3,181)		(2%)		(2,302)		(1%)
Equity in net earnings of unconsolidated companies		2,130		1%		4,786		3%		2,869		<1%
Interest income and other, net		2,771		1%		2,384		2%		3,605		1%
Reorganization items (L)		(4,299)		(3%)		(1,396,905)		(923%)		—		—
Interest and other debt costs		(13,009)		(7%)		(11,179)		(8%)		(54,018)		(12%)
Loss before income taxes	$	(36,687)		(21%)		(1,648,143)		(1089%)		(558,359)		(127%)

Note (K): Restructuring-related professional services costs for the five month period from August 1, 2017 through December 31, 2017 (Successor) are included in reorganization items. Restructuring-related professional services costs included in general and administrative expenses for the four month period from April 1, 2017 through July 31, 2017 (Predecessor), and for the nine months ended December 31, 2016 (Predecessor), were $6.7 million and $12.2 million, respectively.

Note (L): Reorganization items for the five month period from August 1, 2017 through December 31, 2017 (Successor) of $4.3 million include (i) $1.6 million related to re-delivery of sale leaseback vessels to their respective owners and (ii) $2.7 million of restructuring-related professional services costs.

For the following tables for illustrative purposes, the company has combined the Successor and Predecessor results to derive combined results for the three months ended September 30, 2017. The combination was generated by addition of comparable financial statement line items. However, because of various adjustments to the consolidated financial statements in connection with the application of fresh-start reporting, including asset valuation adjustments and liability adjustments, the results of operations for the Successor may not be comparable to those of the Predecessor.

TIDEWATER INC.
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) – QUARTERLY DATA
(Unaudited)
(In thousands, except share and per share data)


		Three Months Ended

		December 31,		September 30,		June 30,		March 31,		December 31,
		2017		2017		2017		2017		2016
Revenues:
Vessel revenues	$		101,313		104,911		112,257		156,905		125,120
Other operating revenues			3,140		5,652		2,849		3,844		4,095
			104,453		110,563		115,106		160,749		129,215
Costs and expenses:
Vessel operating costs			68,201		84,966		83,773		80,845		82,358
Costs of other operating revenues			1,519		3,036		1,585		2,689		2,714
General and administrative (M)			30,373		25,019		33,059		41,727		34,151
Vessel operating leases			91		1,747		5,542		8,443		8,441
Depreciation and amortization			12,195		19,302		36,287		37,592		41,302
Gain on asset dispositions, net			(6,612)		(376)		(3,189)		(6,064)		(6,139)
Asset impairments			16,777		21,325		163,423		64,857		253,422
			122,544		155,019		320,480		230,089		416,249
Operating loss			(18,091)		(44,456)		(205,374)		(69,340)		(287,034)
Other income (expenses):
Foreign exchange gain (loss)			(349)		(2,082)		(1,157)		664		2,970
Equity in net earnings of unconsolidated companies			825		1,574		4,517		2,841		1,557
Interest income and other			1,898		1,577		1,680		1,588		1,437
Reorganization items (M)			(2,419)		(1,085,609)		(313,176)		—		—
Interest and other debt costs			(7,769)		(5,814)		(10,605)		(21,008)		(18,587)
			(7,814)		(1,090,354)		(318,741)		(15,915)		(12,623)
Loss before income taxes			(25,905)		(1,134,810)		(524,115)		(85,255)		(299,657)
Income tax (benefit) expense			(2,706)		3,216		295		1,717		(2,884)
Net loss	$		(23,199)		(1,138,026)		(524,410)		(86,972)		(296,773)
Less: Net income (loss) attributable to noncontrolling interests			374		142		24		7,883		903
Net loss attributable to Tidewater Inc.	$		(23,573)		(1,138,168)		(524,434)		(94,855)		(297,676)
Basic loss per common share	$		(1.02)		—		—		—		—
Diluted loss per common share	$		(1.02)		—		—		—		—
Weighted average common shares outstanding (N)			23,137,909		—		—		—		—
Dilutive effect of stock options and restricted stock			—		—		—		—		—
Adjusted weighted average common shares			23,137,909		—		—		—		—

Vessel operating margin	$		33,112		19,945		28,484		76,060		42,762

Note (M): Restructuring-related items:
Restructuring-related professional services costs included in general and administrative expenses	$		—		—		6,709		16,805		5,188
Restructuring-related professional services costs included in reorganization items			2,031		23,494		5,165		—		—
Restructuring-related sale leaseback vessel redelivery costs included in reorganization items			388		1,244		—		—		—
Total	$		2,419		24,738		11,874		16,805		5,188

Note (N): Weighted average shares outstanding include 924,125 shares issuable upon the exercise of Jones Act-related New Creditor Warrants held by U.S. citizens. Common shares and New Creditor Warrants and the sum of common shares and New Creditor Warrants outstanding at December 31, 2017 were 22,115,916, 7,884,006 and 29,999,922, respectively.

TIDEWATER INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)


		December 31,		September 30,		June 30,		March 31,		December 31,
ASSETS		2017		2017		2017		2017		2016
Current assets:
Cash and cash equivalents	$		432,035		459,978		683,778		706,404		649,804
Restricted Cash			21,300		—		—		—		—
Trade and other receivables, net			114,184		120,271		116,612		123,262		174,335
Due from affiliate			230,315		245,056		252,810		262,652		287,592
Marine operating supplies			28,220		31,083		31,097		30,560		30,720
Other current assets			19,130		14,813		34,619		18,409		22,053
Total current assets			845,184		871,201		1,118,916		1,141,287		1,164,504
Investments in, at equity, and advances to unconsolidated companies			29,216		25,729		49,216		45,115		42,516
Net properties and equipment			837,520		868,689		2,659,314		2,864,762		3,009,407
Deferred drydocking and survey costs			3,208		388		—		—		—
Other assets			31,052		46,845		92,134		139,535		98,772
Total assets	$		1,746,180		1,812,852		3,919,580		4,190,699		4,315,199

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$		38,497		39,439		35,087		31,599		50,754
Accrued expenses			54,806		61,115		63,155		78,121		67,412
Due to affiliate			99,448		112,642		121,037		132,857		132,836
Accrued property and liability losses			2,585		2,774		2,758		3,583		3,574
Current portion of long-term debt			5,103		5,174		10,106		2,034,124		2,036,060
Other current liabilities			19,693		38,041		28,029		48,429		50,274
Total current liabilities			220,132		259,185		260,172		2,328,713		2,340,910
Long-term debt			443,057		445,677		80,863		—		—
Deferred income taxes			—		—		—		46,013		56,375
Accrued property and liability losses			2,471		2,607		2,776		10,209		11,113
Other liabilities and deferred credits			58,576		62,569		60,382		154,705		159,237
Liabilities subject to compromise			—		—		2,389,557		—		—

Commitments and Contingencies

Equity:
Common stock			22		21		4,712		4,712		4,707
Additional paid-in capital			1,059,120		1,056,563		165,516		165,221		171,018
Retained earnings			(39,266)		(15,693)		950,895		1,475,329		1,570,027
Accumulated other comprehensive loss			(147)		82		(10,258)		(10,344)		(6,446)
Total stockholders' equity			1,019,729		1,040,973		1,110,865		1,634,918		1,739,306
Noncontrolling interests			2,215		1,841		14,965		16,141		8,258
Total equity			1,021,944		1,042,814		1,125,830		1,651,059		1,747,564
Total liabilities and equity	$		1,746,180		1,812,852		3,919,580		4,190,699		4,315,199

Due from affiliate, net of due to affiliate	$		130,867		132,414		131,773		129,795		154,756

TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA


		Three Months Ended
		December 31,		September 30,		June 30,		March 31,		December 31,
		2017		2017		2017		2017		2016
REVENUE BY VESSEL CLASS (In thousands):

Americas fleet:
Deepwater (O)	$		17,062		14,102		17,313		62,831		30,846
Towing-supply			8,263		9,319		11,274		14,738		11,905
Other			3,010		2,989		3,300		2,964		2,826
Total (O)	$		28,335		26,410		31,887		80,533		45,577
Middle East/Asia Pacific fleet:
Deepwater	$		9,066		8,393		10,701		9,433		8,605
Towing-supply			14,110		16,823		17,065		17,245		17,628
Other			—		—		—		—		—
Total	$		23,176		25,216		27,766		26,678		26,233
Africa/Europe fleet:
Deepwater	$		24,753		25,170		22,158		23,032		21,748
Towing-supply			20,448		23,173		27,019		22,794		26,087
Other			4,601		4,942		3,427		3,868		5,475
Total	$		49,802		53,285		52,604		49,694		53,310
Worldwide fleet:
Deepwater (O)	$		50,881		47,665		50,172		95,296		61,199
Towing-supply			42,821		49,315		55,358		54,777		55,620
Other			7,611		7,931		6,727		6,832		8,301
Total (O)	$		101,313		104,911		112,257		156,905		125,120

Note (O): Included in Americas fleet deepwater, Americas fleet total, Worldwide fleet deepwater and Worldwide fleet total revenue for the quarter ended March 31, 2017 (Predecessor) is $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract.

TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA


	Three Months Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
	2017		2017		2017		2017		2016
AVERAGE NUMBER OF VESSELS:

Americas fleet:
Deepwater		31		39		41		41		41
Towing-supply		16		19		21		22		22
Other		6		8		8		8		8
Total		53		66		70		71		71
Stacked vessels		(27)		(39)		(35)		(34)		(35)
Active vessels		26		27		35		37		36
Middle East/Asia Pacific fleet:
Deepwater		21		21		22		23		22
Towing-supply		39		43		44		44		46
Other		—		1		1		1		1
Total		60		65		67		68		69
Stacked vessels		(20)		(25)		(25)		(24)		(30)
Active vessels		40		40		42		44		39
Africa/Europe fleet:
Deepwater		44		43		41		41		42
Towing-supply		41		44		44		43		43
Other		31		33		37		38		38
Total		116		120		122		122		123
Stacked vessels		(42)		(42)		(49)		(54)		(50)
Active vessels		74		78		73		68		73
Worldwide fleet:
Deepwater		96		103		104		105		105
Towing-supply		96		106		109		109		111
Other		37		42		46		47		47
Total		229		251		259		261		263
Stacked vessels		(89)		(106)		(109)		(112)		(115)
Active vessels		140		145		150		149		148

Total active		140		145		150		149		148
Total stacked		89		106		109		112		115
Total joint venture and other vessels		8		8		8		8		8
Total		237		259		267		269		271

AVERAGE NUMBER OF LEASED VESSELS INCLUDED IN VESSEL COUNTS ABOVE:

Americas fleet:
Deepwater		—		7		8		8		8
Towing-supply		—		3		3		3		3
Total		—		10		11		11		11
Stacked vessels		—		(7)		(7)		(7)		(6)
Active vessels		—		3		4		4		5
Africa/Europe fleet:
Towing-supply		—		5		5		5		5
Total		—		5		5		5		5
Stacked vessels		—		—		—		(1)		(1)
Active vessels		—		5		5		4		4
Worldwide fleet:
Deepwater		—		7		8		8		8
Towing-supply		—		8		8		8		8
Total		—		15		16		16		16
Stacked vessels		—		(7)		(7)		(8)		(7)
Active vessels		—		8		9		8		9

Note (P): Included in total owned or chartered vessels at December 31, 2017 (Successor), September 30, 2017 (Successor), June 30, 2017 (Predecessor), March 31, 2017 (Predecessor) and December 31, 2016 (Predecessor), were 89, 91, 115, 111, and 116 vessels, respectively, that were stacked by the company. These vessels were considered to be in service and are included in the calculation of our total fleet utilization statistics.

TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA


	Three Months Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
	2017		2017		2017		2017		2016
AVAILABLE DAYS - TOTAL FLEET:

Americas fleet:
Deepwater		2,893		3,545		3,731		3,690		3,812
Towing-supply		1,441		1,773		1,941		1,980		2,012
Other		574		736		728		720		736
Total		4,908		6,054		6,400		6,390		6,560
Middle East/Asia Pacific fleet:
Deepwater		1,908		1,932		2,001		2,070		2,068
Towing-supply		3,604		3,980		3,974		3,952		4,232
Other		3		92		91		90		92
Total		5,515		6,004		6,066		6,112		6,392
Africa/Europe fleet:
Deepwater		4,072		3,996		3,732		3,650		3,822
Towing-supply		3,719		4,045		4,004		3,886		3,956
Other		2,852		3,021		3,352		3,420		3,496
Total		10,643		11,062		11,088		10,956		11,274
Worldwide fleet:
Deepwater		8,873		9,473		9,464		9,410		9,702
Towing-supply		8,764		9,798		9,919		9,818		10,200
Other		3,429		3,849		4,171		4,230		4,324
Total		21,066		23,120		23,554		23,458		24,226


	Three Months Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
	2017		2017		2017		2017		2016
OUT-OF-SERVICE - STACKED DAYS:

Americas fleet:
Deepwater		1,565		2,359		2,110		1,874		1,990
Towing-supply		705		889		849		900		969
Other		206		368		273		270		276
Total		2,476		3,616		3,232		3,044		3,235
Middle East/Asia Pacific fleet:
Deepwater		705		746		702		900		1,179
Towing-supply		1,089		1,435		1,446		1,240		1,455
Other		3		92		91		90		92
Total		1,797		2,273		2,239		2,230		2,726
Africa/Europe fleet:
Deepwater		947		920		1,047		1,310		1,507
Towing-supply		1,652		1,576		1,554		1,637		1,507
Other		1,295		1,382		1,896		1,887		1,620
Total		3,894		3,878		4,497		4,834		4,634
Worldwide fleet:
Deepwater		3,217		4,025		3,859		4,084		4,676
Towing-supply		3,446		3,900		3,849		3,777		3,931
Other		1,504		1,842		2,260		2,247		1,988
Total		8,167		9,767		9,968		10,108		10,595

TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA


	Three Months Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
	2017		2017		2017		2017		2016
AVAILABLE DAYS - ACTIVE FLEET:

Americas fleet:
Deepwater		1,328		1,186		1,621		1,816		1,822
Towing-supply		736		884		1,092		1,080		1,043
Other		368		368		455		450		460
Total		2,432		2,438		3,168		3,346		3,325
Middle East/Asia Pacific fleet:
Deepwater		1,203		1,186		1,299		1,170		889
Towing-supply		2,515		2,545		2,528		2,712		2,777
Other		—		—		—		—		—
Total		3,718		3,731		3,827		3,882		3,666
Africa/Europe fleet:
Deepwater		3,125		3,076		2,685		2,340		2,315
Towing-supply		2,067		2,469		2,450		2,249		2,449
Other		1,557		1,639		1,456		1,533		1,876
Total		6,749		7,184		6,591		6,122		6,640
Worldwide fleet:
Deepwater		5,656		5,448		5,605		5,326		5,026
Towing-supply		5,318		5,898		6,070		6,041		6,269
Other		1,925		2,007		1,911		1,983		2,336
Total		12,899		13,353		13,586		13,350		13,631

Note (Q): Available Days - Active Fleet equals Available Days - Total Fleet less Out-Of-Service - Stacked Days.

TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA


	Three Months Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
	2017		2017		2017		2017		2016
UTILIZATION - TOTAL FLEET:

Americas fleet:
Deepwater		32.2%		20.5%		23.4%		29.7%		32.1%
Towing-supply		39.0		36.1		36.4		41.8		36.4
Other		60.8		45.3		50.0		45.7		37.0
Total		37.6%		28.1%		30.3%		35.2%		34.0%
Middle East/Asia Pacific fleet:
Deepwater		48.7%		44.0%		54.4%		45.9%		35.9%
Towing-supply		57.7		57.1		57.2		54.2		52.9
Other		—		—		—		—		—
Total		54.5%		52.0%		55.4%		50.6%		46.7%
Africa/Europe fleet:
Deepwater		57.2%		58.6%		51.7%		53.6%		42.9%
Towing-supply		43.5		46.4		51.7		42.1		47.4
Other		44.8		42.6		31.3		31.0		37.6
Total		49.1%		49.7%		45.6%		42.5%		42.8%
Worldwide fleet:
Deepwater		47.2%		41.3%		41.1%		42.6%		37.2%
Towing-supply		48.6		48.9		50.9		46.9		47.5
Other		47.4		42.1		33.9		32.8		36.7
Total		47.8%		44.7%		44.0%		42.6%		41.4%

Note (R): Utilization Total Fleet equals Days Worked / Available Days Total Fleet.

TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA


	Three Months Ended
	December 31,		September 30,		June 30,		March 31,		December 31,
	2017		2017		2017		2017		2016
UTILIZATION - ACTIVE FLEET:

Americas fleet:
Deepwater		70.2%		61.2%		53.8%		60.4%		67.2%
Towing-supply		76.4		72.3		64.7		76.6		70.3
Other		94.8		90.6		79.9		73.1%		59.2
Total		75.8%		69.7%		61.3%		67.3%		67.1%
Middle East/Asia Pacific fleet:
Deepwater		77.2%		71.6%		83.8%		81.2%		83.6%
Towing-supply		82.7		89.4		89.9		79.0		80.6
Other		—		—		—		—		—
Total		80.9%		83.7%		87.8		79.7%		81.4%
Africa/Europe fleet:
Deepwater		74.5%		76.1%		71.9%		83.7%		70.8%
Towing-supply		78.2		76.0		84.6		72.7		76.6
Other		82.0		78.4		72.1		69.1		70.0
Total		77.4%		76.6%		76.6%		76.0%		72.7%
Worldwide fleet:
Deepwater		74.1%		71.9%		69.4%		75.2%		71.8%
Towing-supply		80.1		81.2		83.2		76.2		77.3
Other		84.5		80.6		74.0		70.0		67.9
Total		78.1%		77.3%		76.2%		74.9%		73.7%

Note (S): Utilization Active Fleet equals Days Worked / Available Days - Active Fleet.

TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA


		Three Months Ended
		December 31,		September 30,		June 30,		March 31,		December 31,
		2017		2017		2017		2017		2016
AVERAGE VESSEL DAY RATES:

Americas fleet:
Deepwater (T)	$		18,301		19,429		19,869		57,311		25,181
Towing-supply			14,700		14,577		15,959		17,816		16,239
Other			8,628		8,968		9,071		9,015		10,384
Total (T)	$		15,372		15,550		16,423		35,756		20,436
Middle East/Asia Pacific fleet:
Deepwater	$		9,762		9,883		9,825		9,927		11,576
Towing-supply			6,787		7,398		7,511		8,045		7,872
Other			—		—		—		—		—
Total	$		7,705		8,073		8,261		8,623		8,795
Africa/Europe fleet:
Deepwater	$		10,625		10,753		11,482		11,763		13,262
Towing-supply			12,644		12,348		13,040		13,940		13,917
Other			3,602		3,854		3,265		3,652		4,169
Total	$		9,533		9,685		10,413		10,682		11,042
Worldwide fleet:
Deepwater (T)	$		12,142		12,172		12,897		23,797		16,961
Towing-supply			10,056		10,295		10,961		11,893		11,476
Other			4,681		4,906		4,759		4,922		5,235
Total (T)	$		10,056		10,162		10,842		15,693		12,461

Note (T): Included in Americas fleet deepwater, Americas fleet total, Worldwide fleet deepwater and Worldwide fleet total average day rates for the quarter ended March 31, 2017 (Predecessor) is $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract. Excluding the early cancellation revenue, Americas fleet deepwater, Americas fleet total, Worldwide fleet deepwater and Worldwide fleet total average day rates would have been $21,602, $18,374, $14,021 and $11,778, respectively, for the quarter ended March 31, 2017 (Predecessor).

TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA


		Three Months Ended
		December 31,		September 30,		June 30,		March 31,		December 31,
(In thousands)		2017		2017		2017		2017		2016
Americas
Vessel revenues (U)	$		28,335		26,410		31,887		80,533		45,577

Vessel operating costs:
Crew costs	$		11,190		12,652		14,457		15,761		16,416
Routine repairs and maintenance			2,203		2,210		2,705		2,879		3,017
Major repairs			(144)		4,167		1,136		7		1,435
Insurance and loss reserves			788		605		933		(519)		664
Fuel, lube and supplies			2,413		2,935		3,394		3,896		2,382
Other			1,321		2,307		4,655		3,555		3,216
Total vessel operating costs	$		17,771		24,876		27,280		25,579		27,130

Vessel operating margin ($)	$		10,564		1,534		4,607		54,954		18,447
Vessel operating margin (%)			37.3%		5.8%		14.4%		68.2%		40.5%

Vessel operating lease expense	$		—		62		3,787		6,627		6,626
Vessel depreciation	$		3,386		5,488		10,748		11,297		12,039
Amortization of deferred drydocking and survey costs	$		86		4		—		—		—
Vessel operations general and administrative expenses	$		6,040		5,481		5,771		6,412		6,024
Vessel operating profit (loss)	$		1,052		(9,501)		(15,699)		30,618		(6,242)

Americas - Select operating statistics
Average vessels - Total fleet (V)			53		66		70		71		71
Utilization - Total fleet			37.6%		28.1%		30.3%		35.2%		34.0%

Average vessels - Active fleet (V)			26		27		35		37		36
Utilization - Active fleet			75.8%		69.7%		61.3%		67.3%		67.1%

Average day rates (U)	$		15,372		15,550		16,423		35,756		20,436

Vessels commencing drydocks			3		7		2		2		2

Major repairs expense and deferred drydocking and survey costs:
Major repairs expense	$		(144)		4,167		1,136		7		1,435
Cash paid for deferred drydocking and survey costs	$		554		243		—		—		—
	$		410		4,410		1,136		7		1,435

Deferred drydocking and survey costs - beginning balance	$		239		—		—		—		—
Cash paid for deferred drydocking and survey costs	$		554		243		—		—		—
Amortization of deferred drydocking and survey costs	$		86		4		—		—		—
Deferred drydocking and survey costs - ending balance	$		707		239		—		—		—

Note (U): Included in Americas vessel revenue for the quarter ended March 31, 2017 is $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract. Excluding the early cancellation revenue, Americas average day rates would have been $18,374 for the quarter ended March 31, 2017.

Note (V): Average leased vessels - Total fleet			—		10		11		11		11
Average leased vessels - Active fleet			—		3		4		4		5

TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA


		Three Months Ended
		December 31,		September 30,		June 30,		March 31,		December 31,
(In thousands)		2017		2017		2017		2017		2016
Middle East/Asia Pacific
Vessel revenues	$		23,176		25,216		27,766		26,678		26,233

Vessel operating costs:
Crew costs	$		8,666		9,101		9,795		9,495		9,264
Routine repairs and maintenance			1,733		2,387		2,164		2,318		1,801
Major repairs			442		320		511		3,988		1,631
Insurance and loss reserves			771		626		681		(732)		659
Fuel, lube and supplies			2,653		1,725		1,539		2,543		1,568
Other			2,723		2,977		2,908		3,351		3,963
Total vessel operating costs	$		16,988		17,136		17,598		20,963		18,886

Vessel operating margin ($)	$		6,188		8,080		10,168		5,715		7,347
Vessel operating margin (%)			26.7%		32.0%		36.6%		21.4%		28.0%

Vessel operating lease expense	$		—		—		—		—		—
Vessel depreciation	$		2,905		4,028		7,746		8,499		10,677
Amortization of deferred drydocking and survey costs	$		4		—		—		—		—
Vessel operations general and administrative expenses	$		3,772		3,226		3,738		3,380		5,038
Vessel operating profit (loss)	$		(493)		826		(1,316)		(6,164)		(8,368)

Middle East/Asia Pacific - Select operating statistics
Average vessels - Total fleet			60		65		67		68		69
Utilization - Total fleet			54.5%		52.0%		55.4%		50.6%		46.7%

Average vessels - Active fleet			40		40		42		44		39
Utilization - Active fleet			80.9%		83.7%		87.8%		79.7%		81.4%

Average day rates	$		7,705		8,073		8,261		8,623		8,795

Vessels commencing drydocks			5		1		1		5		3

Major repairs expense and deferred drydocking and survey costs:
Major repairs expense	$		442		320		511		3,988		1,631
Cash paid for deferred drydocking and survey costs	$		209		—		—		—		—
	$		651		320		511		3,988		1,631

Deferred drydocking and survey costs - beginning balance	$		—		—		—		—		—
Cash paid for deferred drydocking and survey costs	$		209		—		—		—		—
Amortization of deferred drydocking and survey costs	$		4		—		—		—		—
Deferred drydocking and survey costs - ending balance	$		205		—		—		—		—

TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA


		Three Months Ended
		December 31,		September 30,		June 30,		March 31,		December 31,
(In thousands)		2017		2017		2017		2017		2016
Africa/Europe
Vessel revenues	$		49,802		53,285		52,604		49,694		53,310

Vessel operating costs:
Crew costs	$		17,292		20,395		17,958		16,573		17,704
Routine repairs and maintenance			3,391		3,674		3,338		3,324		3,384
Major repairs			85		2,811		3,990		4,558		1,946
Insurance and loss reserves			1,387		1,273		1,510		(516)		819
Fuel, lube and supplies			4,334		5,181		4,495		2,840		3,832
Other			6,953		9,620		7,604		7,524		8,657
Total vessel operating costs	$		33,442		42,954		38,895		34,303		36,342

Vessel operating margin ($)	$		16,360		10,331		13,709		15,391		16,968
Vessel operating margin (%)			32.9%		19.4%		26.1%		31.0%		31.8%

Vessel operating lease expense	$		91		1,685		1,755		1,816		1,815
Vessel depreciation	$		5,188		8,855		16,398		16,377		17,166
Amortization of deferred drydocking and survey costs	$		112		—		—		—		—
Vessel operations general and administrative expenses	$		10,134		8,386		8,493		9,653		9,546
Vessel operating loss	$		835		(8,595)		(12,937)		(12,455)		(11,559)

Africa/Europe - Select operating statistics
Average vessels - Total fleet (W)			116		120		122		122		123
Utilization - Total fleet			49.1%		49.7%		45.6%		42.5%		42.8%

Average vessels - Active fleet (W)			74		78		73		68		73
Utilization - Active fleet			77.4%		76.6%		76.6%		76.0%		72.7%

Average day rates	$		9,533		9,685		10,413		10,682		11,042

Vessels commencing drydocks			2		8		6		7		4

Major repairs expense and deferred drydocking and survey costs:
Major repairs expense	$		85		2,811		3,990		4,558		1,946
Cash paid for deferred drydocking and survey costs	$		2,259		149		—		—		—
	$		2,344		2,960		3,990		4,558		1,946

Deferred drydocking and survey costs - beginning balance	$		149		—		—		—		—
Cash paid for deferred drydocking and survey costs	$		2,259		149		—		—		—
Amortization of deferred drydocking and survey costs	$		112		—		—		—		—
Deferred drydocking and survey costs - ending balance	$		2,296		149		—		—		—

Note (W): Average leased vessels - Total fleet			—		5		5		5		5
Average leased vessels - Active fleet			—		5		5		4		4

TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA


		Three Months Ended
		December 31,		September 30,		June 30,		March 31,		December 31,
(In thousands)		2017		2017		2017		2017		2016
Worldwide
Vessel revenues (X)	$		101,313		104,911		112,257		156,905		125,120

Vessel operating costs:
Crew costs	$		37,148		42,148		42,210		41,829		43,384
Routine repairs and maintenance			7,327		8,271		8,207		8,521		8,202
Major repairs			383		7,298		5,637		8,553		5,012
Insurance and loss reserves			2,946		2,504		3,124		(1,767)		2,142
Fuel, lube and supplies			9,400		9,841		9,428		9,279		7,782
Other			10,997		14,904		15,167		14,430		15,836
Total vessel operating costs	$		68,201		84,966		83,773		80,845		82,358

Vessel operating margin ($)	$		33,112		19,945		28,484		76,060		42,762
Vessel operating margin (%)			32.7%		19.0%		25.4%		48.5%		34.2%

Vessel operating lease expense	$		91		1,747		5,542		8,443		8,441
Vessel depreciation	$		11,479		18,371		34,892		36,173		39,882
Amortization of deferred drydocking and survey costs	$		202		4		—		—		—
Vessel operations general and administrative expenses	$		19,946		17,093		18,002		19,445		20,608
Vessel operating profit (loss)	$		1,394		(17,270)		(29,952)		11,999		(26,169)

Worldwide - Select operating statistics
Average vessels - Total fleet (Y)			229		251		259		261		263
Utilization - Total fleet			47.8%		44.7%		44.0%		42.6%		41.4%

Average vessels - Active fleet (Y)			140		145		150		149		148
Utilization - Active fleet			78.1%		77.3%		76.2%		74.9%		73.7%

Average day rates (X)	$		10,056		10,162		10,842		15,693		12,461

Vessels commencing drydocks			10		16		9		14		9

Major repairs expense and deferred drydocking and survey costs:
Major repairs expense	$		383		7,298		5,637		8,553		5,012
Cash paid for deferred drydocking and survey costs	$		3,022		392		—		—		—
	$		3,405		7,690		5,637		8,553		5,012

Deferred drydocking and survey costs - beginning balance	$		388		—		—		—		—
Cash paid for deferred drydocking and survey costs	$		3,022		392		—		—		—
Amortization of deferred drydocking and survey costs	$		202		4		—		—		—
Deferred drydocking and survey costs - ending balance	$		3,208		388		—		—		—

Note (X): Included in Worldwide vessel revenue for the quarter ended March 31, 2017 is $39.1 million of revenue related to the early cancellation of a long-term vessel charter contract. Excluding the early cancellation revenue, Worldwide average day rates would have been $11,778 for the quarter ended March 31, 2017.

Note (Y): Average leased vessels - Total fleet			—		15		16		16		16
Average leased vessels - Active fleet			—		8		9		8		9

TIDEWATER INC.
UNAUDITED OTHER FLEET AND FINANCIAL DATA


		Three Months Ended
		December 31,		September 30,		June 30,		March 31,		December 31,
(In thousands)		2017		2017		2017		2017		2016


Consolidated EBITDA (Z) (AA) (AB)	$		13,255		(2,760)		6,085		55,007		18,842

Restructuring-related professional services costs			(2,031)		(23,494)		(11,874)		(16,805)		(5,188)
Asset impairments			(16,777)		(21,325)		(163,423)		(64,857)		(253,422)
Sale leaseback redelivery costs			(388)		(1,244)		—		—		—
Reorganization items (excluding professional services and sale leaseback redelivery costs)			—		(1,060,871)		(308,011)		—		—
Interest and other debt costs			(7,769)		(5,814)		(10,605)		(21,008)		(18,587)
Income tax benefit (expense)			2,706		(3,216)		(295)		(1,717)		2,884
Depreciation			(11,993)		(19,298)		(36,287)		(37,592)		(41,302)
Amortization of deferred drydocking and survey costs			(202)		(4)		—		—		—

Net loss	$		(23,199)		(1,138,026)		(524,410)		(86,972)		(296,773)



		Three Months Ended
		December 31,		September 30,		June 30,		March 31,		December 31,
(In thousands)		2017		2017		2017		2017		2016


Consolidated EBITDA (Z) (AA) (AB)	$		13,255		(2,760)		6,085		55,007		18,842

Restructuring-related professional service costs			(2,031)		(23,494)		(11,874)		(16,805)		(5,188)
Sale leaseback redelivery costs			(388)		(1,244)		—		—		—
Cash paid for interest			(8,164)		(1,203)		(433)		(8,218)		(28,260)
Cash paid for taxes			(3,262)		(2,521)		(3,611)		(2,167)		(7,959)
Cash paid for deferred drydocking costs			(3,022)		(392)		—		—		—
Change in net working capital, excluding cash			(4,874)		18,585		(9,856)		42,205		(13,247)
Equity in net (earnings) losses of unconsol. companies			(825)		(1,574)		(4,101)		(2,841)		(1,557)
Stock-based compensation expense			2,558		2,554		326		(888)		1,538
Gain on asset disposition			(6,612)		(376)		(3,189)		(6,064)		(6,139)
Changes in other, net			(4,372)		(3,608)		3,706		9,921		2,243

Net cash provided (used) in operating activities	$		(17,737)		(16,033)		(22,947)		70,150		(39,727)

Note (Z): Consolidated EBITDA excludes interest and other debt costs, income tax expense, depreciation and amortization, asset impairment charges, restructuring-related professional services costs and costs related to the redelivery of sale leaseback vessels. Restructuring-related professional services and sale leaseback redelivery costs have been separately presented in the above table. Restructuring-related professional services costs incurred prior to May 17, 2017 were included in general and administrative expenses and such costs incurred subsequent to May 17, 2017 were included in reorganization items in the company's Condensed Consolidated Statements of Earnings (Loss).

Note (AA): Consolidated EBITDA for the three months ended December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017, and December 31, 2016 includes non-cash, stock-based compensation expense of $2,558, $2,554, $326, $(888), and $1,538, respectively.

Note (AB): Consolidated EBITDA for the three months ended December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017 and December 31, 2016 includes vessel operating lease expense of $91, $1,747, $5,542, $8,443, and $8,441, respectively.

Non-GAAP Financial Measures

We disclose and discuss EBITDA as a non-GAAP financial measure 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) before interest and other debt costs, income tax expense, depreciation and amortization, reorganization items, asset impairments, and restructuring-related professional services costs included in general and administrative expenses. Our measure of EBITDA may not be comparable to similarly titled measures presented by other companies. Other companies may calculate EBITDA differently than we do, which may limit its usefulness as a comparative measure.

We view EBITDA both as a performance and liquidity measure and, as such, we believe that the GAAP financial measures most directly comparable to it are net income and net cash provided (used) in operating activities, respectively. Because EBITDA is not a measure of financial performance calculated in accordance with GAAP, it 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 is 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 EBITDA provides 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 helps investors meaningfully evaluate and compare our cash flow generating capacity from quarter to quarter and year to year.

EBITDA is also a financial metric 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 of other companies when evaluating potential acquisitions; and (iii) to assess our ability to service existing fixed charges and incur additional indebtedness.

For illustrative purposes, the company has combined the Successor and Predecessor results to derive combined results for the three months ended September 30, 2017. The combination was generated by addition of comparable financial statement line items. However, because of various adjustments to the consolidated financial statements in connection with the application of fresh-start reporting, including asset valuation adjustments and liability adjustments, the results of operations for the Successor may not be comparable to those of the Predecessor.

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SOURCE Tidewater Inc.

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Tidewater Reports Results For The Three Months Ended December 31, 2017 and The Nine Month Transition Period From April 1, 2017 through December 31, 2017

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