Tidewater Reports Results for the Three and Nine Months Ended September 30, 2024

Nov 07 2024 21:38 GMT

Third Quarter 2024 Highlights

Revenue of $340.4 million, an increase of $1.1 million from the prior quarter
Average day rate increased to $22,275 per day, $1,145 higher than the prior quarter
Net income of $46.4 million and Adjusted EBITDA of $142.6 million
Net cash provided by operating activities of $49.1 million and free cash flow of $67.0 million

Share Repurchases and 2024 Guidance

Repurchased 189,738 shares since the end of the second quarter of 2024 through the end of October for $15.0 million at an average price of $79.06 per share
Board approves additional share repurchase authorization of $10.1 million, for a total current outstanding authorized capacity of $42.8 million, the maximum permissible amount under existing debt agreements
Updated 2024 revenue guidance to $1.33 to $1.35 billion and 2024 gross margin guidance of 48%

HOUSTON--(BUSINESS WIRE)--Nov. 7, 2024-- Tidewater Inc. (NYSE:TDW) announced today revenue for the three and nine months ended September 30, 2024 of $340.4 million and $1,000.8 million, respectively, compared with $299.3 million and $707.3 million, respectively, for the three and nine months ended September 30, 2023. Tidewater's net income for the three and nine months ended September 30, 2024, was $46.4 million ($0.87 per common share) and $143.8 million ($2.70 per common share), respectively, compared with net income of $26.2 million ($0.49 per common share) and $59.5 million ($1.13 per common share), respectively, for the three and nine months ended September 30, 2023.

Quintin Kneen, Tidewater’s President and Chief Executive Officer, commented, “Third quarter revenue of $340.4 million and gross margin of 47.2% came in as expected, with our consolidated average day rate up over 5% to $22,275. In particular, the average day rate and average leading-edge day rates in our large PSV and anchor handler fleets continued to show sequential quarterly improvement. Utilization declined in all of our geographic segments and is principally related to project start-up delays, but also due to higher-than-expected idle time between contracts and days in drydock.

“Cash flow from operations for the first nine months of 2024 was $182.5 million, the best performance Tidewater has seen in 8 years. During the same period the company spent $75.2 million on reducing the number of shares outstanding and $89.0 million on the required amortization of outstanding debt. Our expectation for the next two quarters is that quarterly free cash flow generation will increase. Our ability under our existing debt agreements to repurchase shares will increase substantially in the same time frame and our desire to repurchase shares at current trading levels is very strong. The Board has authorized the maximum permissible amount of share repurchases under our existing debt agreements, and our current unused repurchase capacity is now $42.8 million. The company anticipates share repurchase capacity to increase by close to $100 million in the first quarter of 2025.

“Although we are confident in the visibility of free cash flow growth over the next two quarters, the visibility into the continued pace of growth in offshore activity throughout 2025 is more limited. We will be closely monitoring market dynamics in the coming months and look forward to providing updated thoughts around full-year 2025 in our next earnings press release. Global industry discussion on new vessel orders and reactivations, which popped up briefly over the summer, has dropped off significantly from that time due to the same limited visibility.

“Over the past several years, we have employed a contracting strategy appropriate for an improving market, emphasizing shorter-duration contracts, trading off longer-term contract coverage and higher utilization for the opportunity to push day rates and contract terms. This has proven to be a successful strategy, with our realized day rate now more than double our realized day rate at the beginning of 2022 when the offshore vessel recovery began. We believe this remains the correct contracting strategy as day rates have still not returned to a point at which newbuilding vessel activity makes economic sense, which is reflected in the continued record low newbuild OSV orderbook. The lack of newbuild activity combined with vessel attrition expected to occur over the coming years points to persistent longer-term vessel supply constraints.

“The outlook on the timing of the growth in offshore vessel activity has become uncertain recently due to concerns around slower acceleration in oil demand driven by lower-than-expected growth in China and geopolitical events as well as the growth in non-OPEC oil supply. We continue to believe that these concerns will clarify themselves in the coming months and that the longer-term outlook for Tidewater remains quite attractive. The world’s demand for energy of all types will continue to grow and the displacement rate from the growth of renewable energy sources appears to be lower than previously predicted. As such, hydrocarbon energy sources will remain a critical element of satisfying the world’s demand for energy and offshore hydrocarbons will increasingly fill this need. Our customers’ commitment to long cycle exploration and development programs is indicative of the long-term conviction in the role of offshore hydrocarbons in the global energy mix and underpins our outlook for consistently strong offshore vessel demand. Our customers have executed sizable drilling campaigns over the last few years and seem to be taking time to evaluate the outcomes of these projects before they proceed with incremental future activity. The improvements in demand for offshore vessels coming from subsea activities is very evident but it is not clear to what extent that will offset the expected pause in the growth of offshore drilling activity.

“Given our conviction around the positive and improving structural supply and demand fundamentals and Tidewater’s strong position in the offshore vessel industry, we believe that market inefficiencies will provide for opportunities to continue our past success in enhancing shareholder value as the long-term supply and demand fundamentals continue to develop in our favor.”

In addition to the number of outstanding shares, as of September 30, 2024, the Company also has the following in-the-money warrants.

Common shares outstanding			52,322,461
New Creditor Warrants (strike price $0.001 per common share)			76,175
GulfMark Creditor Warrants (strike price $0.01 per common share)			77,313
Total			52,475,949

Tidewater will hold a conference call to discuss results for the three months ending September 30, 2024 on November 8, 2024, at 8:00 a.m. Central Time. Investors and interested parties may listen to the earnings conference call via telephone by calling +1.800.715.9871 if calling from the U.S. or Canada (+1.647.932.3411 if calling from outside the U.S. or Canada) and provide Conference ID: 6513877 prior to the scheduled start time. A live webcast of the call will also be available in the Investor Relations section of Tidewater’s website at investor.tdw.com.

A replay of the conference call will be available beginning at 11:00 a.m. Central Time on November 8, 2024. To access the replay, visit the Investor Relations section of Tidewater’s website at investor.tdw.com.

About Tidewater

Tidewater owns and operates the largest fleet of offshore support vessels in the industry, with 65 years of experience supporting offshore energy exploration, production and offshore wind activities worldwide. To learn more, visit www.tdw.com.

Cautionary Statement

This news release contains “forward-looking statements” within the meaning of the U.S. federal securities laws – that is, any statements that are not historical facts. Such statements often contain words such as “expect,” “believe,” “think,” “anticipate,” “predict,” “plan,” “assume,” “estimate,” “forecast,” “target,” “projections,” “intend,” “should,” “will,” “shall” and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain and based on our management’s current expectations and beliefs concerning future developments and their potential impact on Tidewater Inc. and its subsidiaries (the “Company”).

These forward-looking statements involve risks and uncertainties that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including, among others: fluctuations in worldwide energy demand and oil and gas prices; fleet additions by competitors and industry overcapacity; limited capital resources available to replenish our asset base as needed, including through acquisitions or vessel construction, and to fund our capital expenditure needs; uncertainty of global financial market conditions and potential constraints in accessing capital or credit if and when needed with favorable terms, if at all; changes in decisions and capital spending by customers based on industry expectations for offshore exploration, field development and production; consolidation of our customer base; loss of a major customer; changing customer demands for vessel specifications, which may make some of our older vessels technologically obsolete for certain customer projects or in certain markets; rapid technological changes; delays and other problems associated with vessel maintenance; the continued availability of qualified personnel and our ability to attract and retain them; the operating risks normally incident to our lines of business, including the potential impact of liquidated counterparties; our ability to comply with covenants in our indentures and other debt instruments; acts of terrorism and piracy; the impact of regional or global public health crises or pandemics; the impact of potential information technology, cybersecurity or data security breaches; integration of acquired businesses and entry into new lines of business; disagreements with our joint venture partners; natural disasters or significant weather conditions; unsettled political conditions, war, civil unrest and governmental actions, such as expropriation or enforcement of customs or other laws that are not well developed or consistently enforced; risks associated with our international operations, including local content, local currency or similar requirements especially in higher political risk countries where we operate; interest rate and foreign currency fluctuations; labor changes proposed by international conventions; increased regulatory burdens and oversight; changes in laws governing the taxation of foreign source income; retention of skilled workers; enforcement of laws related to the environment, labor and foreign corrupt practices; increased global concern, regulation and scrutiny regarding climate change; increased stockholder activism; the potential liability for remedial actions or assessments under existing or future environmental regulations or litigation; the effects of asserted and unasserted claims and the extent of available insurance coverage; the resolution of pending legal proceedings; and other risks and uncertainties detailed in our most recent Form 10-K, Form 10-Qs and Form 8-Ks filed with or furnished to the SEC.

If one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assumptions prove incorrect, actual results or outcomes may vary materially from those reflected in our forward-looking statements. Forward-looking and other statements in this presentation regarding our environmental, social and other sustainability plans, goals or activities are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the SEC. In addition, historical, current, and forward-looking environmental, social and sustainability-related statements may be based on standards still developing, internal controls and processes that we continue to evolve, and assumptions subject to change in the future. Statements in this release are made as of the date hereof, and the Company disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

Financial information is displayed beginning on the next page.

The financial statements and supplementary information presented in this press release were not audited. This press release presents extracts from the Consolidated Balance Sheets at September 30, 2024 and December 31, 2023; the Consolidated Statements of Operations and Consolidated Statements of Equity for the three and nine months ended September 30, 2024 and 2023; and the Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023. Extracts are drawn from the September 30, 2024 unaudited quarterly and year to date financial statements and the December 31, 2023 audited annual financial statements of Tidewater Inc. All per-share amounts are stated on a diluted basis.


TIDEWATER INC. CONDENSED CONSOLIDATED INCOME STATEMENTS (In Thousands, except per share data)

	Three Months Ended						Nine Months Ended
	September 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Revenues:
Vessel revenues	$	338,485		$	296,975		$	994,174		$	698,478
Other operating revenues		1,871			2,287			6,576			8,849
Total revenues		340,356			299,262			1,000,750			707,327
Costs and expenses:
Vessel operating costs		178,654			164,239			522,723			397,962
Costs of other operating revenues		901			1,481			2,867			3,005
General and administrative		28,471			21,001			80,129			70,559
Depreciation and amortization		62,435			57,730			178,150			121,164
Gain on asset dispositions, net		(51	)		(863	)		(13,090	)		(4,483	)
Total costs and expenses		270,410			243,588			770,779			588,207
Operating income		69,946			55,674			229,971			119,120
Other income (expense):
Foreign exchange gain (loss)		5,522			(2,149	)		(939	)		(3,620	)
Equity in net earnings of unconsolidated companies		—			4			—			29
Interest income and other, net		1,028			568			3,686			3,488
Interest and other debt costs, net		(17,622	)		(19,288	)		(56,225	)		(28,209	)
Total other expense		(11,072	)		(20,865	)		(53,478	)		(28,312	)
Income before income taxes		58,874			34,809			176,493			90,808
Income tax expense		12,883			9,260			33,840			32,515
Net income		45,991			25,549			142,653			58,293
Less: Net loss attributable to noncontrolling interests		(380	)		(650	)		(1,098	)		(1,228	)
Net income attributable to Tidewater Inc.	$	46,371		$	26,199		$	143,751		$	59,521
Basic income per common share	$	0.88		$	0.50		$	2.74		$	1.16
Diluted income per common share	$	0.87		$	0.49		$	2.70		$	1.13
Weighted average common shares outstanding		52,490			52,230			52,498			51,235
Dilutive effect of warrants, restricted stock units and stock options		593			1,380			656			1,322
Adjusted weighted average common shares		53,083			53,610			53,154			52,557


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

	September 30, 2024			December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	280,840		$	274,437
Restricted cash		7,259			1,241
Trade and other receivables, net of allowance for credit losses of $3,086 and $15,914 at September 30, 2024 and December 31, 2023, respectively		293,085			268,352
Marine operating supplies		26,670			31,933
Prepaid expenses and other current assets		18,117			15,172
Total current assets		625,971			591,135
Net properties and equipment		1,220,056			1,315,122
Deferred drydocking and survey costs		160,944			106,698
Indemnification assets		12,216			17,370
Other assets		27,944			32,449
Total assets	$	2,047,131		$	2,062,774

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	64,058		$	44,931
Accrued expenses		117,878			125,590
Current portion of long-term debt		53,105			103,077
Other current liabilities		38,532			55,133
Total current liabilities		273,573			328,731
Long-term debt		597,352			631,361
Other liabilities		62,366			64,985

Commitments and contingencies

Equity:
Common stock of $0.001 par value, 125,000,000 shares authorized, 52,322,461 and 52,259,303 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively		52			52
Additional paid-in-capital		1,653,027			1,671,759
Accumulated deficit		(541,191	)		(637,838	)
Accumulated other comprehensive loss		4,592			5,266
Total stockholders' equity		1,116,480			1,039,239
Noncontrolling interests		(2,640	)		(1,542	)
Total equity		1,113,840			1,037,697
Total liabilities and equity	$	2,047,131		$	2,062,774


TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands)

	Three Months Ended						Nine Months Ended
	September 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Net income	$	45,991		$	25,549		$	142,653		$	58,293
Other comprehensive income (loss):
Unrealized gain (loss) on note receivable		130			(153	)		283			(469	)
Change in liability of pension plans		(600	)		—			(957	)		(3,694	)
Total comprehensive income	$	45,521		$	25,396		$	141,979		$	54,130


TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands)

	Nine Months			Nine Months
	Ended			Ended
	September 30, 2024			September 30, 2023
Cash flows from operating activities:
Net income	$	142,653		$	58,293
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		117,430			85,989
Amortization of deferred drydocking and survey costs		60,720			35,175
Amortization of debt premiums and discounts		5,129			2,644
Amortization of below market contracts		(3,929	)		(1,906	)
Provision for deferred income taxes		56			69
Gain on asset dispositions, net		(13,090	)		(4,483	)
Gain on pension settlement		—			(1,807	)
Stock-based compensation expense		9,795			7,247
Changes in assets and liabilities, net of effects of business acquisition:
Trade and other receivables		(24,733	)		(92,684	)
Accounts payable		19,127			18,237
Accrued expenses		(4,623	)		14,231
Deferred drydocking and survey costs		(115,584	)		(73,309	)
Other, net		(10,405	)		9,778
Net cash provided by operating activities		182,546			57,474
Cash flows from investing activities:
Proceeds from asset dispositions		14,868			9,604
Proceeds from sale of notes		2,208			—
Acquisitions, net of cash acquired		—			(594,191	)
Additions to properties and equipment		(23,046	)		(23,202	)
Net cash used in investing activities		(5,970	)		(607,789	)
Cash flows from financing activities:
Exercise of warrants		—			111,483
Proceeds from issuance of shares		2			—
Issuance of long-term debt		—			575,000
Principal payments on long-term debt		(89,007	)		—
Purchase of common stock		(46,639	)		—
Acquisition of non-controlling interest in a majority owned subsidiary		—			(1,427	)
Debt issuance costs		(193	)		(14,758	)
Share based awards reacquired to pay taxes		(28,528	)		(5,899	)
Net cash used in financing activities		(164,365	)		664,399
Net change in cash, cash equivalents and restricted cash		12,211			114,084
Cash, cash equivalents and restricted cash at beginning of period		277,965			167,977
Cash, cash equivalents and restricted cash at end of period	$	290,176		$	282,061


Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest, net of amounts capitalized	$	54,081	$	8,452
Income taxes	$	45,641	$	36,585
Supplemental disclosure of noncash investing activities:
Purchase of vessels	$	—	$	12,198
Supplemental disclosure of noncash financing activities:
Debt incurred for the purchase of vessels	$	—	$	12,198

Note: Cash, cash equivalents and restricted cash at September 30, 2024 includes $2.1 million in long-term restricted cash, which is included in other assets in our consolidated balance sheet.


TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (In Thousands)

	Three Months Ended
								Accumulated
			Additional					other			Non
	Common		paid-in		Accumulated			comprehensive			controlling
	stock		capital		deficit			income			interest			Total
Balance at June 30, 2024	$	52	$	1,649,523	$	(573,390	)	$	5,062		$	(2,260	)	$	1,078,987
Total comprehensive income (loss)		—		—		46,371			(470	)		(380	)		45,521
Repurchase and retirement of common stock		—		—		(14,172	)		—			—			(14,172	)
Amortization of share-based awards		—		3,504		—			—			—			3,504
Balance at September 30, 2024	$	52	$	1,653,027	$	(541,191	)	$	4,592		$	(2,640	)	$	1,113,840

Balance at June 30, 2023	$	51	$	1,554,793	$	(666,327	)	$	4,566		$	(556	)	$	892,527
Total comprehensive income (loss)		—		—		26,199			(153	)		(650	)		25,396
Exercise of warrants into common stock		2		111,481		—			—			—			111,483
Amortization of share-based awards		—		2,118		—			—			—			2,118
Balance at September 30, 2023	$	53	$	1,668,392	$	(640,128	)	$	4,413		$	(1,206	)	$	1,031,524

	Nine Months Ended
										Accumulated
				Additional						other			Non
	Common			paid-in			Accumulated			comprehensive			controlling
	stock			capital			deficit			income (loss)			interest			Total
Balance at December 31, 2023	$	52		$	1,671,759		$	(637,838	)	$	5,266		$	(1,542	)	$	1,037,697
Total comprehensive income (loss)		—			—			143,751			(674	)		(1,098	)		141,979
Issuance of common stock		1			1			—			—			—			2
Repurchase and retirement of common stock		(1	)		—			(47,104	)		—			—			(47,105	)
Amortization of share-based awards		—			(18,733	)		—			—			—			(18,733	)
Balance at September 30, 2024	$	52		$	1,653,027		$	(541,191	)	$	4,592		$	(2,640	)	$	1,113,840


Balance at December 31, 2022	$	51		$	1,556,990		$	(699,649	)	$	8,576		$	22		$	865,990
Total comprehensive income (loss)		—			—			59,521			(4,163	)		(1,228	)		54,130
Exercise of warrants into common stock		2			111,481			—			—			—			111,483
Acquisition of non-controlling interest in a majority owned subsidiary		—			(1,427	)		—			—			—			(1,427	)
Amortization of share-based awards		—			1,348			—			—			—			1,348
Balance at September 30, 2023	$	53		$	1,668,392		$	(640,128	)	$	4,413		$	(1,206	)	$	1,031,524


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

(In Thousands)	Three Months Ended								Nine Months Ended
	September 30, 2024				September 30, 2023				September 30, 2024				September 30, 2023
Vessel revenues:
Americas	$	64,606	19	%	$	70,717	24	%	$	201,689	20	%	$	168,780	24	%
Asia Pacific		56,283	17	%		38,994	13	%		159,285	16	%		83,603	12	%
Middle East		36,947	11	%		34,685	12	%		111,415	11	%		97,303	14	%
Europe/Mediterranean		85,325	25	%		78,929	26	%		248,972	25	%		149,474	21	%
West Africa		95,324	28	%		73,650	25	%		272,813	28	%		199,318	29	%
Total vessel revenues	$	338,485	100	%	$	296,975	100	%	$	994,174	100	%	$	698,478	100	%
Vessel operating costs:
Crew costs	$	107,708	32	%	$	97,286	32	%	$	316,291	32	%	$	231,936	33	%
Repair and maintenance		25,554	8	%		23,595	8	%		71,645	7	%		57,081	8	%
Insurance		2,965	1	%		2,359	1	%		8,170	1	%		6,532	1	%
Fuel, lube and supplies		17,213	5	%		17,770	6	%		50,093	5	%		45,283	7	%
Other		25,214	7	%		23,229	8	%		76,524	8	%		57,130	8	%
Total vessel operating costs		178,654	53	%		164,239	55	%		522,723	53	%		397,962	57	%
Vessel operating margin (A)	$	159,831	47	%	$	132,736	45	%	$	471,451	47	%	$	300,516	43	%

Note (A): Vessel operating margin equals vessel revenues less vessel operating costs.


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

(In Thousands)	Three Months Ended										Nine Months Ended
	September 30, 2024					September 30, 2023					September 30, 2024					September 30, 2023
Vessel operating profit:
Americas	$	13,299		4	%	$	12,586		4	%	$	43,573		5	%	$	26,793		4	%
Asia Pacific		15,292		4	%		14,555		5	%		47,070		5	%		27,149		4	%
Middle East		(900	)	(0	)%		(1,143	)	(0	)%		(1,213	)	(0	)%		(3,144	)	(1	)%
Europe/Mediterranean		12,363		4	%		9,576		3	%		42,249		4	%		19,919		3	%
West Africa		43,526		13	%		28,392		10	%		122,275		12	%		71,087		10	%
Other operating profit		970		0	%		806		0	%		3,709		0	%		5,844		1	%
		84,550		25	%		64,772		22	%		257,663		26	%		147,648		21	%

Corporate expenses (A)		(14,655	)	(4	)%		(9,961	)	(3	)%		(40,782	)	(4	)%		(33,011	)	(5	)%
Gain on asset dispositions, net		51		0	%		863		0	%		13,090		1	%		4,483		1	%
Operating income	$	69,946		21	%	$	55,674		19	%	$	229,971		23	%	$	119,120		17	%

Note (A): General and administrative expenses for the three and nine months ended September 30, 2024 include stock-based compensation of $3.7 million and $9.8 million, respectively. General and administrative expenses for the three months and nine months ended September 30, 2023 include stock-based compensation of $2.4 million and $7.2 million, respectively. In addition, vessel operating and general and administrative costs for the three and nine months ended September 30, 2024, include $0.6 million and $1.3 million in acquisition, restructuring and integration related costs, respectively. Vessel operating and general and administrative costs for the three and nine months ended September 30, 2023, include $6.0 million and $8.7 million in one-time acquisition, restructuring and integration related costs, respectively.


TIDEWATER INC. CONSOLIDATED STATEMENTS OF EARNINGS – QUARTERLY DATA (In Thousands, except per share data)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023
Revenues:
Vessel revenues	$	338,485		$	337,003		$	318,686		$	300,515		$	296,975
Other operating revenues		1,871			2,227			2,478			2,143			2,287
Total revenues		340,356			339,230			321,164			302,658			299,262
Costs and expenses:
Vessel operating costs (A)		178,654			176,513			167,556			158,553			164,239
Costs of other operating revenue		901			816			1,150			1,337			1,481
General and administrative (A)		28,471			26,329			25,329			24,724			21,001
Depreciation and amortization		62,435			59,445			56,270			59,167			57,730
Gain on asset dispositions, net		(51	)		(2,000	)		(11,039	)		(4,218	)		(863	)
Total operating costs and expenses		270,410			261,103			239,266			239,563			243,588
Operating income		69,946			78,127			81,898			63,095			55,674
Other income (expense):
Foreign exchange gain (loss)		5,522			(2,376	)		(4,085	)		2,250			(2,149	)
Equity in net earnings (losses) of unconsolidated companies		—			5			(5	)		10			4
Interest income and other, net		1,028			1,175			1,483			3,029			568
Interest and other debt costs, net		(17,622	)		(19,127	)		(19,476	)		(20,263	)		(19,288	)
Total other expense		(11,072	)		(20,323	)		(22,083	)		(14,974	)		(20,865	)
Income before income taxes		58,874			57,804			59,815			48,121			34,809
Income tax expense		12,883			7,887			13,070			10,793			9,260
Net income		45,991			49,917			46,745			37,328			25,549
Net loss attributable to noncontrolling interests		(380	)		(437	)		(281	)		(336	)		(650	)
Net income attributable to Tidewater Inc.	$	46,371		$	50,354		$	47,026		$	37,664		$	26,199
Basic income per common share	$	0.88		$	0.96		$	0.90		$	0.72		$	0.50
Diluted income per common share	$	0.87		$	0.94		$	0.89		$	0.70		$	0.49
Weighted average common shares outstanding		52,490			52,684			52,320			52,648			52,230
Dilutive effect of warrants, restricted stock units and stock options		593			663			580			1,351			1,380
Adjusted weighted average common shares		53,083			53,347			52,900			53,999			53,610

Vessel operating margin	$	159,831		$	160,490		$	151,130		$	141,962		$	132,736

Note (A): Acquisition, restructuring and integration related costs	$	581		$	—		$	709		$	2,177		$	6,079


TIDEWATER INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands)

	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023
ASSETS
Current assets:
Cash and cash equivalents	$	280,840		$	315,897		$	280,853		$	274,437		$	275,070
Restricted cash		7,259			3,527			6,474			1,241			4,973
Trade and other receivables, net		293,085			280,498			285,968			268,352			250,671
Marine operating supplies		26,670			26,908			24,767			31,933			27,489
Assets held for sale		—			—			—			—			565
Prepaid expenses and other current assets		18,117			20,115			17,447			15,172			16,598
Total current assets		625,971			646,945			615,509			591,135			575,366
Net properties and equipment		1,220,056			1,253,583			1,286,618			1,315,122			1,348,001
Deferred drydocking and survey costs		160,944			148,657			128,639			106,698			99,215
Indemnification assets		12,216			10,920			16,642			17,370			18,648
Other assets		27,944			29,643			30,408			32,449			30,325
Total assets	$	2,047,131		$	2,089,748		$	2,077,816		$	2,062,774		$	2,071,555

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	64,058		$	60,740		$	51,774		$	44,931		$	57,183
Accrued expenses		117,878			133,149			132,190			125,590			119,631
Current portion of long-term debt		53,105			102,993			103,009			103,077			102,369
Other current liabilities		38,532			43,342			52,164			55,133			53,301
Total current liabilities		273,573			340,224			339,137			328,731			332,484
Long-term debt		597,352			607,998			620,329			631,361			641,301
Other liabilities		62,366			62,539			63,197			64,985			66,246


Equity:
Common stock		52			52			53			52			53
Additional paid-in-capital		1,653,027			1,649,523			1,646,061			1,671,759			1,668,392
Accumulated deficit		(541,191	)		(573,390	)		(594,347	)		(637,838	)		(640,128	)
Accumulated other comprehensive income		4,592			5,062			5,209			5,266			4,413
Total stockholders' equity		1,116,480			1,081,247			1,056,976			1,039,239			1,032,730
Noncontrolling interests		(2,640	)		(2,260	)		(1,823	)		(1,542	)		(1,206	)
Total equity		1,113,840			1,078,987			1,055,153			1,037,697			1,031,524
Total liabilities and equity	$	2,047,131		$	2,089,748		$	2,077,816		$	2,062,774		$	2,071,555


TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS – QUARTERLY DATA (In Thousands)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023
Cash flows from operating activities:
Net income	$	45,991		$	49,917		$	46,745		$	37,328		$	25,549
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		39,239			39,380			38,811			42,788			43,845
Amortization of deferred drydocking and survey costs		23,196			20,065			17,459			16,379			13,885
Amortization of debt premiums and discounts		1,536			1,779			1,814			1,975			1,802
Amortization of below market contracts		(1,073	)		(1,650	)		(1,206	)		(1,894	)		(1,906	)
Provision (benefit) for deferred income taxes		24			(41	)		73			23			35
Gain on asset dispositions, net		(51	)		(2,000	)		(11,039	)		(4,218	)		(863	)
Gain on pension settlement		—			—			—			(506	)		—
Stock-based compensation expense		3,569			3,460			2,766			3,508			2,496
Changes in assets and liabilities, net of effects of business acquisition:
Trade and other receivables		(12,587	)		5,470			(17,616	)		(17,072	)		(54,765	)
Accounts payable		3,318			8,966			6,843			(12,252	)		(12,639	)
Accrued expenses		(15,271	)		4,048			6,600			5,841			27,775
Deferred drydocking and survey costs		(35,483	)		(40,083	)		(40,018	)		(24,069	)		(20,618	)
Other, net		(3,272	)		(10,666	)		3,533			(600	)		10,343
Net cash provided by operating activities		49,136			78,645			54,765			47,231			34,939
Cash flows from investing activities:
Proceeds from asset dispositions		51			2,354			12,463			5,902			945
Proceeds from sale of notes		1,506			702			—			—			—
Acquisitions, net of cash acquired		—			—			—			—			(594,191	)
Additions to properties and equipment		(5,712	)		(6,392	)		(10,942	)		(8,386	)		(5,702	)
Net cash provided by (used in) investing activities		(4,155	)		(3,336	)		1,521			(2,484	)		(598,948	)
Cash flows from financing activities:
Exercise of warrants		—			—			—			—			111,483
Proceeds from issuance of shares		—			2			—			—			—
Issuance of long-term debt		—			—			—			—			575,000
Principal payments on long-term debt		(62,500	)		(14,007	)		(12,500	)		(13,677	)		—
Purchase of common stock		(13,741	)		(29,397	)		(3,501	)		(35,025	)		—
Debt issuance costs		—			(58	)		(135	)		—			(14,758	)
Share based awards reacquired to pay taxes		(65	)		(1	)		(28,462	)		(141	)		(378	)
Net cash provided by (used in) financing activities		(76,306	)		(43,461	)		(44,598	)		(48,843	)		671,347
Net change in cash, cash equivalents and restricted cash		(31,325	)		31,848			11,688			(4,096	)		107,338
Cash, cash equivalents and restricted cash at beginning of period		321,501			289,653			277,965			282,061			174,723
Cash, cash equivalents and restricted cash at end of period	$	290,176		$	321,501		$	289,653		$	277,965		$	282,061

Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest, net of amounts capitalized	$	23,535		$	14,925		$	15,621		$	18,186		$	606
Income taxes	$	12,557		$	17,481		$	15,603		$	7,295		$	9,384
Supplemental disclosure of noncash investing activities:
Purchase of vessels	$	—		$	—		$	—		$	2,067		$	27
Supplemental disclosure of noncash financing activities:
Debt incurred for purchase of vessels	$	—		$	—		$	—		$	3,037		$	27


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)

	Three Months Ended
	September 30,		June 30,			March 31,		December 31,		September 30,
	2024		2024			2024		2023		2023
VESSEL REVENUE BY VESSEL CLASS

Americas fleet:
PSV > 900	$	27,192	$	31,400		$	29,924	$	28,714	$	29,270
PSV < 900		26,926		28,010			24,531		28,143		28,886
AHTS > 16K		6,249		7,228			2,036		4,034		3,584
AHTS 8 - 16K		908		2,002			2,476		2,316		2,064
AHTS 4 - 8K		351		219			945		1,428		1,570
Other		2,980		4,283			4,029		3,790		5,343
Total		64,606		73,142			63,941		68,425		70,717
Asia Pacific fleet:
PSV > 900		19,535		21,578			23,210		19,485		20,159
PSV < 900		17,214		14,402			11,830		8,679		8,292
AHTS > 16K		12,358		7,815			4,555		3,759		3,271
AHTS 8 - 16K		4,640		7,874			4,507		4,706		5,287
AHTS 4 - 8K		2,182		1,269			1,576		1,601		1,582
Other		354		2,283			2,103		402		403
Total		56,283		55,221			47,781		38,632		38,994
Middle East fleet:
PSV > 900		1,387		1,359			1,365		1,378		1,088
PSV < 900		19,909		19,963			21,017		19,215		17,790
AHTS > 16K		—		(3	)		287		1,178		1,196
AHTS 8 - 16K		3,450		3,163			2,397		3,094		3,420
AHTS 4 - 8K		12,201		12,054			12,866		13,207		11,191
Total		36,947		36,536			37,932		38,072		34,685
Europe/Mediterranean fleet:
PSV > 900		66,808		64,875			61,827		61,559		59,872
PSV < 900		13,679		13,290			14,126		15,356		14,039
AHTS > 16K		3,790		4,057			3,346		2,437		3,617
Other		1,048		1,044			1,082		1,391		1,401
Total		85,325		83,266			80,381		80,743		78,929
West Africa fleet:
PSV > 900		17,012		20,044			21,743		15,478		17,566
PSV < 900		41,367		32,601			31,812		31,893		26,396
AHTS > 16K		8,916		8,065			8,048		6,994		7,138
AHTS 8 - 16K		18,453		18,466			16,316		11,219		11,917
AHTS 4 - 8K		3,100		2,827			2,370		2,126		2,745
Other		6,476		6,835			8,362		6,933		7,888
Total		95,324		88,838			88,651		74,643		73,650
Worldwide fleet:
PSV > 900		131,934		139,256			138,069		126,614		127,955
PSV < 900		119,095		108,266			103,316		103,286		95,403
AHTS > 16K		31,313		27,162			18,272		18,402		18,806
AHTS 8 - 16K		27,451		31,505			25,696		21,335		22,688
AHTS 4 - 8K		17,834		16,369			17,757		18,362		17,088
Other		10,858		14,445			15,576		12,516		15,035
Total	$	338,485	$	337,003		$	318,686	$	300,515	$	296,975


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA

	Three Months Ended
	September 30,		June 30,			March 31,			December 31,			September 30,
	2024		2024			2024			2023			2023
AVERAGE NUMBER OF VESSELS:

Americas fleet:
PSV > 900		10		11			11			12			12
PSV < 900		17		17			18			18			18
AHTS > 16K		2		2			2			2			2
AHTS 8 - 16K		1		2			2			2			2
AHTS 4 - 8K		2		2			2			2			2
Other		2		1			1			2			2
Total		34		35			36			38			38
Stacked vessels		—		—			(1	)		(1	)		(1	)
Active vessels		34		35			35			37			37
Asia Pacific fleet:
PSV > 900		9		9			8			8			8
PSV < 900		5		5			5			5			4
AHTS > 16K		3		3			3			2			2
AHTS 8 - 16K		2		3			3			3			3
AHTS 4 - 8K		1		1			1			1			1
Other		—		1			1			—			—
Total		20		22			21			19			18
Stacked vessels		—		—			—			—			—
Active vessels		20		22			21			19			18
Middle East fleet:
PSV > 900		1		1			1			1			1
PSV < 900		20		20			20			20			20
AHTS > 16K		—		—			—			1			1
AHTS 8 - 16K		5		5			5			5			5
AHTS 4 - 8K		17		17			17			18			18
Total		43		43			43			45			45
Stacked vessels		—		—			—			—			—
Active vessels		43		43			43			45			45
Europe/Mediterranean fleet:
PSV > 900		40		39			40			39			38
PSV < 900		9		9			9			10			10
AHTS > 16K		2		2			2			2			2
Total		51		50			51			51			50
Stacked vessels		—		—			—			—			—
Active vessels		51		50			51			51			50
West Africa fleet:
PSV > 900		9		9			9			9			9
PSV < 900		19		19			19			19			19
AHTS > 16K		4		4			4			4			4
AHTS 8 - 16K		13		11			11			11			11
AHTS 4 - 8K		3		4			4			4			5
Other		20		20			21			21			24
Total		68		67			68			68			72
Stacked vessels		—		(1	)		(1	)		(1	)		(3	)
Active vessels		68		66			67			67			69
Worldwide fleet:
PSV > 900		69		69			69			69			68
PSV < 900		70		70			71			72			71
AHTS > 16K		11		11			11			11			11
AHTS 8 - 16K		21		21			21			21			21
AHTS 4 - 8K		23		24			24			25			26
Other		22		22			23			23			26
Total		216		217			219			221			223
Stacked vessels		—		(1	)		(2	)		(2	)		(4	)
Active vessels		216		216			217			219			219

Total active		216		216			217			219			219
Total stacked		—		1			2			2			4
Total		216		217			219			221			223


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA

	Three Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
	2024		2024		2024		2023		2023
AVAILABLE DAYS - TOTAL FLEET:

Americas fleet:
PSV > 900		920		960		1,001		1,104		1,095
PSV < 900		1,531		1,547		1,631		1,675		1,730
AHTS > 16K		184		182		182		184		184
AHTS 8 - 16K		92		182		182		184		184
AHTS 4 - 8K		184		182		182		184		184
Other		184		123		128		184		184
Total		3,095		3,176		3,306		3,515		3,561
Asia Pacific fleet:
PSV > 900		828		819		765		736		726
PSV < 900		460		455		455		454		358
AHTS > 16K		276		273		241		184		184
AHTS 8 - 16K		221		273		273		276		276
AHTS 4 - 8K		92		91		91		92		92
Other		—		59		54		—		—
Total		1,877		1,970		1,879		1,742		1,636
Middle East fleet:
PSV > 900		92		91		91		92		92
PSV < 900		1,840		1,820		1,820		1,840		1,840
AHTS > 16K		—		—		32		92		92
AHTS 8 - 16K		460		455		455		460		460
AHTS 4 - 8K		1,564		1,547		1,547		1,615		1,640
Total		3,956		3,913		3,945		4,099		4,124
Europe/Mediterranean fleet:
PSV > 900		3,680		3,590		3,603		3,588		3,492
PSV < 900		828		819		838		920		907
AHTS > 16K		184		182		182		184		184
Total		4,692		4,591		4,623		4,692		4,583
West Africa fleet:
PSV > 900		828		819		819		828		819
PSV < 900		1,781		1,729		1,729		1,735		1,744
AHTS > 16K		368		364		364		368		368
AHTS 8 - 16K		1,159		1,001		1,001		1,012		1,012
AHTS 4 - 8K		276		330		364		385		476
Other		1,840		1,820		1,875		1,899		2,184
Total		6,252		6,063		6,152		6,227		6,603
Worldwide fleet:
PSV > 900		6,348		6,279		6,279		6,348		6,224
PSV < 900		6,440		6,370		6,473		6,624		6,579
AHTS > 16K		1,012		1,001		1,001		1,012		1,012
AHTS 8 - 16K		1,932		1,911		1,911		1,932		1,932
AHTS 4 - 8K		2,116		2,150		2,184		2,276		2,392
Other		2,024		2,002		2,057		2,083		2,368
Total		19,872		19,713		19,905		20,275		20,507


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA

	Three Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
	2024		2024		2024		2023		2023
OUT-OF-SERVICE - STACKED DAYS:

Americas fleet:
PSV < 900		—		—		84		92		92
Total		—		—		84		92		92
West Africa fleet:
AHTS 4 - 8K		—		57		91		109		184
Other		—		—		—		16		103
Total		—		57		91		125		287
Worldwide fleet:
PSV < 900		—		—		84		92		92
AHTS 4 - 8K		—		57		91		109		184
Other		—		—		—		16		103
Total		—		57		175		217		379


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA

	Three Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
	2024		2024		2024		2023		2023
AVAILABLE DAYS - ACTIVE FLEET:

Americas fleet:
PSV > 900		920		960		1,001		1,104		1,095
PSV < 900		1,531		1,547		1,547		1,583		1,638
AHTS > 16K		184		182		182		184		184
AHTS 8 - 16K		92		182		182		184		184
AHTS 4 - 8K		184		182		182		184		184
Other		184		123		128		184		184
Total		3,095		3,176		3,222		3,423		3,469
Asia Pacific fleet:
PSV > 900		828		819		765		736		726
PSV < 900		460		455		455		454		358
AHTS > 16K		276		273		241		184		184
AHTS 8 - 16K		221		273		273		276		276
AHTS 4 - 8K		92		91		91		92		92
Other		—		59		54		—		—
Total		1,877		1,970		1,879		1,742		1,636
Middle East fleet:
PSV > 900		92		91		91		92		92
PSV < 900		1,840		1,820		1,820		1,840		1,840
AHTS > 16K		—		—		32		92		92
AHTS 8 - 16K		460		455		455		460		460
AHTS 4 - 8K		1,564		1,547		1,547		1,615		1,640
Total		3,956		3,913		3,945		4,099		4,124
Europe/Mediterranean fleet:
PSV > 900		3,680		3,590		3,603		3,588		3,492
PSV < 900		828		819		838		920		907
AHTS > 16K		184		182		182		184		184
Total		4,692		4,591		4,623		4,692		4,583
West Africa fleet:
PSV > 900		828		819		819		828		819
PSV < 900		1,781		1,729		1,729		1,735		1,744
AHTS > 16K		368		364		364		368		368
AHTS 8 - 16K		1,159		1,001		1,001		1,012		1,012
AHTS 4 - 8K		276		273		273		276		292
Other		1,840		1,820		1,875		1,883		2,081
Total		6,252		6,006		6,061		6,102		6,316
Worldwide fleet:
PSV > 900		6,348		6,279		6,279		6,348		6,224
PSV < 900		6,440		6,370		6,389		6,532		6,487
AHTS > 16K		1,012		1,001		1,001		1,012		1,012
AHTS 8 - 16K		1,932		1,911		1,911		1,932		1,932
AHTS 4 - 8K		2,116		2,093		2,093		2,167		2,208
Other		2,024		2,002		2,057		2,067		2,265
Total		19,872		19,656		19,730		20,058		20,128


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA

		Three Months Ended
	September 30,				June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
UTILIZATION - TOTAL FLEET:

Americas fleet:
PSV > 900			83.5	%		92.2	%		87.9	%		77.2	%		84.5	%
PSV < 900			76.5			80.3			70.0			78.9			85.7
AHTS > 16K			83.9			99.1			33.4			59.0			54.7
AHTS 8 - 16K			76.4			58.6			80.2			74.0			65.4
AHTS 4 - 8K			23.4			14.2			59.7			93.7			97.8
Other			69.2			99.4			100.0			100.0			100.0
Total			75.4	%		80.7	%		74.5	%		78.9	%		84.1	%
Asia Pacific fleet:
PSV > 900			63.2	%		87.6	%		93.7	%		93.4	%		97.3	%
PSV < 900			91.7			96.3			86.3			92.3			99.0
AHTS > 16K			81.8			65.3			53.4			72.7			66.7
AHTS 8 - 16K			58.8			80.8			75.9			63.9			78.9
AHTS 4 - 8K			91.7			78.5			100.0			100.0			100.0
Other			—			77.9			76.8			—			—
Total			73.8	%		84.9	%		84.0	%		86.6	%		91.3	%
Middle East fleet:
PSV > 900			100.0	%		100.0	%		100.0	%		100.0	%		90.2	%
PSV < 900			85.0			88.0			95.3			88.6			82.8
AHTS > 16K			—			—			69.3			100.0			100.0
AHTS 8 - 16K			71.0			66.6			50.1			60.4			69.0
AHTS 4 - 8K			75.8			82.9			86.5			87.6			77.7
Total			80.1	%		83.8	%		86.6	%		85.6	%		79.8	%
Europe/Mediterranean fleet:
PSV > 900			86.1	%		87.4	%		88.9	%		91.4	%		90.8	%
PSV < 900			81.2			87.5			90.9			86.8			86.4
AHTS > 16K			52.0			46.4			34.1			53.2			63.3
Total			83.9	%		85.8	%		87.1	%		89.0	%		88.8	%
West Africa fleet:
PSV > 900			66.0	%		78.4	%		86.9	%		64.9	%		88.5	%
PSV < 900			80.0			79.2			82.6			95.4			85.1
AHTS > 16K			74.7			79.5			89.8			91.1			77.0
AHTS 8 - 16K			85.5			98.2			98.6			72.4			79.5
AHTS 4 - 8K			63.3			71.9			66.7			57.6			58.5
Other			49.6			49.5			55.9			56.9			50.0
Total			69.2	%		72.9	%		77.1	%		73.3	%		70.7	%
Worldwide fleet:
PSV > 900			80.3	%		87.1	%		89.2	%		85.8	%		90.1	%
PSV < 900			81.6			84.3			84.3			87.9			85.6
AHTS > 16K			74.2			73.2			60.0			75.8			70.7
AHTS 8 - 16K			78.6			84.4			82.0			68.5			75.6
AHTS 4 - 8K			70.3			75.2			81.6			83.5			76.3
Other			51.4			53.4			59.2			60.7			53.9
Total			76.2	%		80.5	%		81.5	%		81.5	%		80.5	%


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA

		Three Months Ended
	September 30,				June 30,			March 31,			December 31,			September 30,
		2024			2024			2024			2023			2023
UTILIZATION - ACTIVE FLEET:

Americas fleet:
PSV > 900			83.5	%		92.2	%		87.9	%		77.2	%		84.5	%
PSV < 900			76.5			80.3			73.8			83.4			90.5
AHTS > 16K			83.9			99.1			33.4			59.0			54.7
AHTS 8 - 16K			76.4			58.6			80.2			74.0			65.4
AHTS 4 - 8K			23.4			14.2			59.7			93.7			97.8
Other			69.2			99.4			100.0			100.0			100.0
Total			75.4	%		80.7	%		76.5	%		81.0	%		86.3	%
Asia Pacific fleet:
PSV > 900			63.2	%		87.6	%		93.7	%		93.4	%		97.3	%
PSV < 900			91.7			96.3			86.3			92.3			99.0
AHTS > 16K			81.8			65.3			53.4			72.7			66.7
AHTS 8 - 16K			58.8			80.8			75.9			63.9			78.9
AHTS 4 - 8K			91.7			78.5			100.0			100.0			100.0
Other			—			77.9			76.8			—			—
Total			73.8	%		84.9	%		84.0	%		86.6	%		91.3	%
Middle East fleet:
PSV > 900			100.0	%		100.0	%		100.0	%		100.0	%		90.2	%
PSV < 900			85.0			88.0			95.3			88.6			82.8
AHTS > 16K			—			—			69.3			100.0			100.0
AHTS 8 - 16K			71.0			66.6			50.1			60.4			69.0
AHTS 4 - 8K			75.8			82.9			86.5			87.6			77.7
Total			80.1	%		83.8	%		86.6	%		85.6	%		79.8	%
Europe/Mediterranean fleet:
PSV > 900			86.1	%		87.4	%		88.9	%		91.4	%		90.8	%
PSV < 900			81.2			87.5			90.9			86.8			86.4
AHTS > 16K			52.0			46.4			34.1			53.2			63.3
Total			83.9	%		85.8	%		87.1	%		89.0	%		88.8	%
West Africa fleet:
PSV > 900			66.0	%		78.4	%		86.9	%		64.9	%		88.5	%
PSV < 900			80.0			79.2			82.6			95.4			85.1
AHTS > 16K			74.7			79.5			89.8			91.1			77.0
AHTS 8 - 16K			85.5			98.2			98.6			72.4			79.5
AHTS 4 - 8K			63.3			86.9			88.9			80.4			95.4
Other			49.6			49.5			55.9			57.4			52.5
Total			69.2	%		73.6	%		78.3	%		74.8	%		73.9	%
Worldwide fleet:
PSV > 900			80.3	%		87.1	%		89.2	%		85.8	%		90.1	%
PSV < 900			81.6			84.3			85.4			89.2			86.8
AHTS > 16K			74.2			73.2			60.0			75.8			70.7
AHTS 8 - 16K			78.6			84.4			82.0			68.5			75.6
AHTS 4 - 8K			70.3			77.2			85.1			87.7			82.6
Other			51.4			53.4			59.2			61.2			56.4
Total			76.2	%		80.7	%		82.3	%		82.4	%		82.1	%


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA

	Three Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,
	2024		2024		2024		2023		2023
AVERAGE VESSEL DAY RATES: (A)

Americas fleet:
PSV > 900	$	35,404	$	35,490	$	34,015	$	33,707	$	31,648
PSV < 900		22,986		22,542		21,499		21,306		19,479
AHTS > 16K		40,478		40,088		33,490		37,174		35,598
AHTS 8 - 16K		12,925		18,771		16,964		16,997		17,157
AHTS 4 - 8K		8,167		8,453		8,703		8,285		8,717
Other		23,420		30,266		30,423		18,427		26,857
Total		27,676		28,317		25,894		24,524		23,495
Asia Pacific fleet:
PSV > 900		37,341		30,070		32,387		28,351		28,525
PSV < 900		40,805		32,875		30,122		20,703		23,380
AHTS > 16K		54,756		43,808		35,411		28,120		26,649
AHTS 8 - 16K		35,682		35,678		21,757		26,680		24,275
AHTS 4 - 8K		25,883		17,758		17,315		17,404		17,197
Other		—		43,350		43,703		—		—
Total		40,419		32,848		30,101		25,378		25,867
Middle East fleet:
PSV > 900		15,079		14,936		14,996		14,972		13,112
PSV < 900		12,730		12,466		12,115		11,785		11,677
AHTS > 16K		—		—		12,968		12,801		13,004
AHTS 8 - 16K		10,558		10,440		10,515		11,140		10,771
AHTS 4 - 8K		10,291		9,404		9,609		9,334		8,787
Total		11,661		11,148		11,108		10,855		10,544
Europe/Mediterranean fleet:
PSV > 900		21,092		20,686		19,294		18,771		18,879
PSV < 900		20,347		18,543		18,557		19,227		17,926
AHTS > 16K		39,597		47,999		53,966		24,899		31,048
Total		21,484		20,950		19,763		19,061		19,105
West Africa fleet:
PSV > 900		31,118		31,231		30,557		28,797		24,220
PSV < 900		29,031		23,818		22,287		19,271		17,781
AHTS > 16K		32,453		27,861		24,611		20,869		25,192
AHTS 8 - 16K		18,627		18,784		16,536		15,302		14,804
AHTS 4 - 8K		17,755		11,915		9,766		9,583		9,858
Other		7,096		7,587		7,975		6,415		7,217
Total		22,044		20,093		18,687		16,356		15,772
Worldwide fleet:
PSV > 900		25,883		25,452		24,640		23,240		22,804
PSV < 900		22,666		20,170		18,932		17,734		16,949
AHTS > 16K		41,721		37,073		30,423		23,985		26,293
AHTS 8 - 16K		18,087		19,527		16,390		16,120		15,533
AHTS 4 - 8K		11,990		10,127		9,969		9,658		9,368
Other		9,410		11,968		11,797		8,397		10,281
Total	$	22,275	$	21,130	$	19,563	$	18,066	$	17,865

Note (A): Average Vessel Day Rates equals Vessel Revenue / Days Worked.


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023

Americas
Vessel revenues	$	64,606		$	73,142		$	63,941		$	68,425		$	70,717

Vessel operating costs:
Crew costs		21,646			23,318			24,062			24,045			26,848
Repair and maintenance		5,227			5,645			4,534			3,846			5,588
Insurance		571			463			494			526			476
Fuel, lube and supplies		3,165			2,994			4,522			3,241			4,386
Other		5,921			5,747			5,928			5,172			5,924
Total vessel operating costs		36,530			38,167			39,540			36,830			43,222

Vessel operating margin ($)		28,076			34,975			24,401			31,595			27,495
Vessel operating margin (%)		43.5	%		47.8	%		38.2	%		46.2	%		38.9	%

Americas - Select operating statistics
Average vessels - Total fleet		34			35			36			38			38
Utilization - Total fleet		75.4	%		80.7	%		74.5	%		78.9	%		84.1	%

Average vessels - Active fleet		34			35			35			37			37
Utilization - Active fleet		75.4	%		80.7	%		76.5	%		81.0	%		86.3	%

Average day rates	$	27,676		$	28,317		$	25,894		$	24,524		$	23,495

Vessels commencing drydocks		4			3			7			3			3


Deferred drydocking and survey costs - beginning balance	$	37,103		$	31,698		$	28,688		$	29,684		$	29,769
Cash paid for deferred drydocking and survey costs		5,009			9,190			8,014			5,025			4,658
Amortization of deferred drydocking and survey costs		(5,621	)		(5,704	)		(5,004	)		(5,353	)		(3,727	)
Disposals, intersegment transfers and other		(2,679	)		1,919			—			(668	)		(1,016	)
Deferred drydocking and survey costs - ending balance	$	33,812		$	37,103		$	31,698		$	28,688		$	29,684


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023

Asia Pacific
Vessel revenues	$	56,283		$	55,221		$	47,781		$	38,632		$	38,994

Vessel operating costs:
Crew costs		24,685			23,023			19,306			15,177			12,390
Repair and maintenance		3,834			3,092			2,769			2,977			2,969
Insurance		327			278			273			269			183
Fuel, lube and supplies		2,560			2,335			1,937			1,191			909
Other		2,396			2,968			2,491			2,045			2,380
Total vessel operating costs		33,802			31,696			26,776			21,659			18,831

Vessel operating margin ($)		22,481			23,525			21,005			16,973			20,163
Vessel operating margin (%)		39.9	%		42.6	%		44.0	%		43.9	%		51.7	%

Asia Pacific - Select operating statistics
Average vessels - Total fleet		20			22			21			19			18
Utilization - Total fleet		73.8	%		84.9	%		84.0	%		86.6	%		91.3	%

Average vessels - Active fleet		20			22			21			19			18
Utilization - Active fleet		73.8	%		84.9	%		84.0	%		86.6	%		91.3	%

Average day rates	$	40,419		$	32,848		$	30,101		$	25,378		$	25,867

Vessels commencing drydocks		2			2			3			—			—


Deferred drydocking and survey costs - beginning balance	$	8,744		$	8,376		$	3,769		$	3,595		$	2,128
Cash paid for deferred drydocking and survey costs		4,069			1,602			4,734			(18	)		84
Amortization of deferred drydocking and survey costs		(1,565	)		(1,234	)		(844	)		(720	)		(637	)
Disposals, intersegment transfers and other		—			—			717			912			2,020
Deferred drydocking and survey costs - ending balance	$	11,248		$	8,744		$	8,376		$	3,769		$	3,595


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023

Middle East
Vessel revenues	$	36,947		$	36,536		$	37,932		$	38,072		$	34,685

Vessel operating costs:
Crew costs		13,071			13,540			13,270			13,716			13,914
Repair and maintenance		4,625			4,300			4,508			4,105			4,828
Insurance		510			464			420			501			385
Fuel, lube and supplies		2,842			2,274			2,304			2,610			3,142
Other		6,000			7,138			6,006			4,906			4,796
Total vessel operating costs		27,048			27,716			26,508			25,838			27,065

Vessel operating margin ($)		9,899			8,820			11,424			12,234			7,620
Vessel operating margin (%)		26.8	%		24.1	%		30.1	%		32.1	%		22.0	%

Middle East - Select operating statistics
Average vessels - Total fleet		43			43			43			45			45
Utilization - Total fleet		80.1	%		83.8	%		86.6	%		85.6	%		79.8	%

Average vessels - Active fleet		43			43			43			45			45
Utilization - Active fleet		80.1	%		83.8	%		86.6	%		85.6	%		79.8	%

Average day rates	$	11,661		$	11,148		$	11,108		$	10,855		$	10,544

Vessels commencing drydocks		4			3			11			3			4


Deferred drydocking and survey costs - beginning balance	$	23,089		$	23,690		$	19,331		$	21,153		$	22,717
Cash paid for deferred drydocking and survey costs		4,764			2,737			7,520			1,360			3,234
Amortization of deferred drydocking and survey costs		(3,694	)		(3,338	)		(3,161	)		(3,182	)		(2,776	)
Disposals, intersegment transfers and other		—			—			—			—			(2,022	)
Deferred drydocking and survey costs - ending balance	$	24,159		$	23,089		$	23,690		$	19,331		$	21,153


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023

Europe/Mediterranean
Vessel revenues	$	85,325		$	83,266		$	80,381		$	80,743		$	78,929

Vessel operating costs:
Crew costs		28,818			27,085			26,282			25,848			26,632
Repair and maintenance		7,279			7,058			5,493			6,081			5,342
Insurance		827			761			756			791			689
Fuel, lube and supplies		3,924			3,461			4,094			3,717			4,033
Other		4,974			4,351			4,359			3,719			5,376
Total vessel operating costs		45,822			42,716			40,984			40,156			42,072

Vessel operating margin ($)		39,503			40,550			39,397			40,587			36,857
Vessel operating margin (%)		46.3	%		48.7	%		49.0	%		50.3	%		46.7	%

Europe/Mediterranean - Select operating statistics
Average vessels - Total fleet		51			50			51			51			50
Utilization - Total fleet		83.9	%		85.8	%		87.1	%		89.0	%		88.8	%

Average vessels - Active fleet		51			50			51			51			50
Utilization - Active fleet		83.9	%		85.8	%		87.1	%		89.0	%		88.8	%

Average day rates	$	21,484		$	20,950		$	19,763		$	19,061		$	19,105

Vessels commencing drydocks		8			8			16			5			5


Deferred drydocking and survey costs - beginning balance	$	34,779		$	27,260		$	21,078		$	16,256		$	11,705
Cash paid for deferred drydocking and survey costs		12,225			11,584			10,876			7,580			6,733
Amortization of deferred drydocking and survey costs		(5,367	)		(4,065	)		(3,359	)		(2,758	)		(3,201	)
Disposals, intersegment transfers and other		—			—			(1,335	)		—			1,019
Deferred drydocking and survey costs - ending balance	$	41,637		$	34,779		$	27,260		$	21,078		$	16,256


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023

West Africa
Vessel revenues	$	95,324		$	88,838		$	88,651		$	74,643		$	73,650

Vessel operating costs:
Crew costs		19,488			19,265			19,432			18,751			17,502
Repair and maintenance		4,589			4,648			4,044			4,626			4,868
Insurance		730			659			637			678			626
Fuel, lube and supplies		4,722			4,498			4,461			4,506			5,300
Other		5,923			7,148			5,174			5,509			4,753
Total vessel operating costs		35,452			36,218			33,748			34,070			33,049

Vessel operating margin ($)		59,872			52,620			54,903			40,573			40,601
Vessel operating margin (%)		62.8	%		59.2	%		61.9	%		54.4	%		55.1	%

West Africa - Select operating statistics
Average vessels - Total fleet		68			67			68			68			72
Utilization - Total fleet		69.2	%		72.9	%		77.1	%		73.3	%		70.7	%

Average vessels - Active fleet		68			66			67			67			69
Utilization - Active fleet		69.2	%		73.6	%		78.3	%		74.8	%		73.9	%

Average day rates	$	22,044		$	20,093		$	18,687		$	16,356		$	15,772

Vessels commencing drydocks		5			4			7			7			7


Deferred drydocking and survey costs - beginning balance	$	44,942		$	37,615		$	33,832		$	28,527		$	26,162
Cash paid for deferred drydocking and survey costs		9,416			14,970			8,874			10,121			5,909
Amortization of deferred drydocking and survey costs		(6,949	)		(5,724	)		(5,091	)		(4,367	)		(3,544	)
Disposals, intersegment transfers and other		2,679			(1,919	)		—			(449	)		—
Deferred drydocking and survey costs - ending balance	$	50,088		$	44,942		$	37,615		$	33,832		$	28,527


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023

Worldwide
Vessel revenues	$	338,485		$	337,003		$	318,686		$	300,515		$	296,975

Vessel operating costs:
Crew costs		107,708			106,231			102,352			97,537			97,286
Repair and maintenance		25,554			24,743			21,348			21,635			23,595
Insurance		2,965			2,625			2,580			2,765			2,359
Fuel, lube and supplies		17,213			15,562			17,318			15,265			17,770
Other		25,214			27,352			23,958			21,351			23,229
Total vessel operating costs		178,654			176,513			167,556			158,553			164,239

Vessel operating margin ($)		159,831			160,490			151,130			141,962			132,736
Vessel operating margin (%)		47.2	%		47.6	%		47.4	%		47.2	%		44.7	%

Worldwide - Select operating statistics
Average vessels - Total fleet		216			217			219			221			223
Utilization - Total fleet		76.2	%		80.5	%		81.5	%		81.5	%		80.5	%

Average vessels - Active fleet		216			216			217			219			219
Utilization - Active fleet		76.2	%		80.7	%		82.3	%		82.4	%		82.1	%

Average day rates	$	22,275		$	21,130		$	19,563		$	18,066		$	17,865

Vessels commencing drydocks		23			20			44			18			19


Deferred drydocking and survey costs - beginning balance	$	148,657		$	128,639		$	106,698		$	99,215		$	92,481
Cash paid for deferred drydocking and survey costs		35,483			40,083			40,018			24,068			20,618
Amortization of deferred drydocking and survey costs		(23,196	)		(20,065	)		(17,459	)		(16,380	)		(13,885	)
Disposals, intersegment transfers and other		—			—			(618	)		(205	)		1
Deferred drydocking and survey costs - ending balance	$	160,944		$	148,657		$	128,639		$	106,698		$	99,215


TIDEWATER INC. UNAUDITED OTHER FLEET AND FINANCIAL DATA (In Thousands)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023

Net income	$	45,991		$	49,917		$	46,745		$	37,328		$	25,549

Interest and other debt costs		17,622			19,127			19,476			20,263			19,288
Income tax expense		12,883			7,887			13,070			10,793			9,260
Depreciation		39,239			39,380			38,811			42,788			43,845
Amortization of deferred drydock and survey costs		23,196			20,065			17,459			16,379			13,885
Amortization of below market contracts		(1,073	)		(1,650	)		(1,206	)		(1,894	)		(1,906	)
EBITDA (A), (B), (C)		137,858			134,726			134,355			125,657			109,921

Non-cash indemnification assets credit (charge)		553			1,556			1,122			(70	)		1,184
Non-cash stock compensation expense		3,569			3,460			2,766			3,508			2,496
Acquisition, restructuring and integration related costs		581			—			709			2,177			6,079
Adjusted EBITDA (A), (B), (C)	$	142,561		$	139,742		$	138,952		$	131,272		$	119,680

Note (A): EBITDA excludes interest and other debt costs, income tax expense, depreciation and amortization of deferred drydock and below market contracts. Additionally, Adjusted EBITDA excludes non-cash indemnification assets charge included in interest income and other; non-cash stock-based compensation expense; and acquisition, restructuring and integration related costs. Note (B): EBITDA for the three months ended September 30, 2024, and for each of the prior four quarters includes non-cash stock-based compensation expense of $3,569, $3,460, $2,766, $3,508 and $2,496 respectively. Note (C): EBITDA and Adjusted EBITDA for the three months ended September 30, 2024, and for each of the prior four quarters includes foreign exchange gain (losses) of $5,522, $(2,376), $(4,085), $2,250 and $(2,149) respectively.

Non-GAAP Financial Measures

We disclose and discuss EBITDA and Adjusted EBITDA as non-GAAP financial measures 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 or loss) before interest and other debt costs, income tax expense, depreciation and amortization. Additionally, Adjusted EBITDA excludes impairment charges, non-cash indemnification asset charge, non-cash stock-based compensation expense and merger and integration related costs. Our measures of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures presented by other companies. Other companies may calculate EBITDA and Adjusted EBITDA differently than we do, which may limit its usefulness as a comparative measure.

Because EBITDA and Adjusted EBITDA are not measures of financial performance calculated in accordance with GAAP, they 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 and Adjusted EBITDA are 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 provide 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 and Adjusted EBITDA helps investors meaningfully evaluate and compare our cash flow generating capacity from quarter-to-quarter and year-to-year.

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


TIDEWATER INC. UNAUDITED OTHER FLEET AND FINANCIAL DATA (In Thousands)

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023

Net cash provided by operating activities (A)	$	49,136		$	78,645		$	54,765		$	47,231		$	34,939

Cash interest expense		23,535			14,925			15,621			18,186			606
Interest income and other		(1,028	)		(1,175	)		(1,483	)		(3,029	)		(568	)
Indemnification assets credit (charge)		(553	)		(1,556	)		(1,122	)		70			(1,184	)
Additions to property and equipment		(5,712	)		(6,392	)		(10,942	)		(8,386	)		(5,702	)
Acquisitions		—			—			—			—			(594,191	)
Expansion capital		55			66			71			1,034			594,252
	65,433			84,513			56,910			55,106			28,152

Proceeds from asset sales		1,557			3,056			12,463			5,902			945

Free cash flow	$	66,990		$	87,569		$	69,373		$	61,008		$	29,097


Free cash flow is a non-GAAP investment performance indicator which we believe provides useful information regarding the net cash generated by the Company before any payments to capital providers. Free cash flow is determined from net cash provided by operating activities adjusted for capital expenditures, excluding expansion capital, proceeds from asset sales, cash interest expense and interest income. Free cash flow excludes indemnification assets charge included in interest income and other. Free cash flow is not defined by U.S. GAAP and is not a substitute for net cash provided by operating activities. Note (A): Net cash provided by operating activities is affected by changes in our assets and liabilities and the amounts we pay in cash for our drydocks and vessel surveys as illustrated in the following table:

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023
Cash provided by (used in) changes in assets and liabilities, excluding drydock payments	$	(27,812	)	$	7,818		$	(640	)	$	(24,083	)	$	(29,286	)
Cash paid for deferred drydock and survey costs		(35,483	)		(40,083	)		(40,018	)		(24,069	)		(20,618	)
Total uses of cash for changes in assets and liabilities	$	(63,295	)	$	(32,265	)	$	(40,658	)	$	(48,152	)	$	(49,904	)

View source version on businesswire.com: https://www.businesswire.com/news/home/20241101880838/en/

Tidewater Inc.
West Gotcher
Senior Vice President,
Strategy, Corporate Development and Investor Relations
+1.713.470.5285

Source: Tidewater Inc.