CDIS Cal Dive International (MM)

Cal Dive Reports Quarterly Earnings of 64 Cents Per Share (70 Cents Before Expensed Acquisition Costs) HOUSTON, May 4 /PRNewswire-FirstCall/ -- Cal Dive International, Inc. (NASDAQ:CDIS) reported first quarter net income of $25.4 million or $0.64 per diluted share. Included in the earnings was a pre-tax $4.5 million, or $.06 per diluted share, for the write off of seismic costs acquired as part of the Company's recently announced oil and gas production acquisitions. Net income before the charge doubled the level achieved during last year's first quarter. Summary of Results (in thousands, except per share amounts and percentages) First Quarter Fourth Quarter 2005 2004 2004 Revenues $159,575 $120,714 $162,990 Gross Profit 51,873 31,741 53,030 33% 26% 33% Net Income 25,411 13,645 25,269 16% 11% 16% Diluted Earnings Per Share 0.64 0.36 0.65 Owen Kratz, Chairman and Chief Executive Officer of Cal Dive, stated, "Absent the unusual charge, this was our fourth consecutive quarter of record earnings, driven by excellent offshore performance and gradually improving market conditions for Marine Contracting together with continued strong performance by the oil and gas production division (ERT). Following this strong start to the year, we now anticipate 2005 earnings to be in the increased range of $2.30 - $2.90 per share. "We have also been particularly busy setting the groundwork for further growth of Cal Dive in 2006 and beyond. We started by placing a long term debt facility and then announced strategic acquisitions in the Shelf sector of the Marine Contracting market. Finally, we closed several very exciting production contracting deals, which involved both significant reserve additions for ERT and good opportunities for deepwater Marine Contracting work." Financial Highlights * Revenues: The $38.9 million increase in year-over-year first quarter revenues reflects not only increases in commodity prices, but also a significant improvement in Marine Contracting revenues driven primarily by improved market conditions. * Margins: 33% was seven points better than the year-ago quarter due to improved utilization and rates across virtually all business groups within Marine Contracting and the increase in commodity prices. * SG&A: $12.8 million increased $1.7 million from the same period a year ago due primarily to improved financial results and the related increase from our incentive compensation programs. With this increase, SG&A was 8% of first quarter revenues, compared to 9% a year ago. * Equity in Earnings: $1.7 million reflects our share of Deepwater Gateway, L.L.C.'s earnings for the quarter. This reflects a 51% decrease from the fourth quarter due to the expected fall-off in production from the Marco Polo reservoir and to the early retirement of Deepwater Gateway's term loan, which resulted in a $1.2 million charge for the write-off of deferred financing charges. * Debt: On March 30, 2005, Cal Dive issued $300 million of Convertible Senior Notes. We utilized $72 million of the proceeds to fund Cal Dive's portion of the early retirement of Deepwater Gateway's term loan. Total debt to book capitalization was 44% at March 31, 2005, offset by $362 million of unrestricted cash. Subsequent to March 31, 2005, the Company announced acquisitions of certain assets of Stolt Offshore, subject to regulatory approval, and Torch Offshore, subject to bankruptcy court approvals, for approximately $205 million combined, if completed. In addition, the Company announced three production contracting transactions. Further details are provided in the presentation for Cal Dive's quarterly conference call (see the Investor Relations page of http://www.caldive.com/ ). The call, scheduled for 9:00 a.m. Central Daylight Time on Thursday, May 5, 2005, will be webcast live. A replay will be available from the Audio Archives page. Cal Dive International, Inc., headquartered in Houston, Texas, is an energy service company which provides alternate solutions to the oil and gas industry worldwide for marginal field development, alternative development plans, field life extension and abandonment, with service lines including marine diving services, robotics, well operations, facilities ownership and oil and gas production. This press release and attached presentation contain 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 statements that could be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, any projections of revenue, gross margin, expenses, earnings or losses from operations, or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statement concerning developments, performance or industry rankings relating to services; any statements regarding future economic conditions or performance; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include the performance of contracts by suppliers, customers and partners; employee management issues; complexities of global political and economic developments, and other risks described from time to time in our reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ending December 31, 2004. We assume no obligation and do not intend to update these forward-looking statements. CAL DIVE INTERNATIONAL, INC. Comparative Condensed Consolidated Statements of Operations Three Months Ended Mar. 31, (000's omitted, except per share data) 2005 2004 (unaudited) Net Revenues $159,575 $120,714 Cost of Sales 107,702 88,973 Gross Profit 51,873 31,741 Selling and Administrative 12,837 11,158 Income from Operations 39,036 20,583 Equity in Earnings of Production Facilities Investments 1,729 --- Interest Expense, net & Other 264 1,555 Income Before Income Taxes 40,501 19,028 Income Tax Provision 14,540 5,019 Net Income 25,961 14,009 Preferred Stock Dividends and Accretion 550 364 Net Income Applicable to Common Shareholders $25,411 $13,645 Other Financial Data: Income from Operations $39,036 $20,583 Equity in Earnings of Production Facilities Investments 1,729 --- Share of Production Facilities Investments: Depreciation 1,010 --- Interest Expense, net 1,383 --- Depreciation and Amortization: Marine Contracting 9,094 8,900 Oil and Gas Production 17,629 17,500 EBITDA (A) $69,881 $46,983 Weighted Avg. Shares Outstanding: Basic 38,571 37,946 Diluted 40,869 39,150 Earnings Per Share: Basic $0.66 $0.36 Diluted $0.64 $0.36 (A) The Company calculates EBITDA as earnings before net interest expense, taxes, depreciation and amortization (which includes non- cash asset impairments) and the Company's share of depreciation and net interest expense from its Production Facilities Investments. EBITDA and EBITDA margin (defined as EBITDA divided by net revenue) are supplemental non-GAAP financial measurements used by CDI and investors in the marine construction industry in the evaluation of its business due to the measurements being similar to income from operations. Comparative Condensed Consolidated Balance Sheets ASSETS (000's omitted) Mar. 31, 2005 Dec. 31, 2004 (unaudited) Current Assets: Cash and equivalents $362,267 $91,142 Accounts receivable 110,261 114,709 Other current assets 37,202 48,110 Total Current Assets 509,730 253,961 Net Property & Equipment: Marine Contracting 408,702 411,596 Oil and Gas Production 169,986 172,821 Equity Investments in Production Facilities 135,656 67,192 Goodwill 84,073 84,193 Other assets, net 60,022 48,995 Total Assets $1,368,169 $1,038,758 LIABILITIES & SHAREHOLDERS' EQUITY Mar. 31, 2005 Dec. 31, 2004 (unaudited) Current Liabilities: Accounts payable $57,094 $56,047 Accrued liabilities 74,191 75,502 Current mat of L-T debt 7,240 9,613 Total Current Liabilities 138,525 141,162 Long-term debt 436,036 138,947 Deferred income taxes 135,999 133,777 Decommissioning liabilities 83,544 79,490 Other long term liabilities 4,345 5,090 Convertible preferred stock 55,000 55,000 Shareholders' equity 514,720 485,292 Total Liabilities & Equity $1,368,169 $1,038,758 DATASOURCE: Cal Dive International, Inc. CONTACT: Wade Pursell, Chief Financial Officer of Cal Dive International, Inc., +1-281-618-0400, or fax, +1-281-618-0505 Web site: http://www.caldive.com/

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