HOUSTON, Feb. 28 /PRNewswire-FirstCall/ -- Cal Dive International,
Inc. (NASDAQ:CDIS) reported fourth quarter net income of $56
million, or $0.69 per diluted share. This represents a 116%
improvement over last year's fourth quarter results. The Company
sustained damage to certain of its oil and gas production
facilities in Hurricanes Katrina and Rita during the third quarter.
Included in the fourth quarter earnings was approximately $7
million pre-tax of repair and inspection costs resulting from these
hurricanes. The Company's effective tax rate fell to 27% in the
fourth quarter, resulting in a 33% effective rate for 2005 due
primarily to improved profitability both domestically and in
foreign jurisdictions. Summary of Results (in thousands, except per
share amounts and percentages) Fourth Quarter Third Quarter Full
Year 2005 2004 2005 2005 2004 Revenues $264,028 $162,990 $209,338
$799,472 $543,392 Gross Profit 95,852 53,030 82,928 283,072 171,912
36% 33% 40% 35% 32% Net Income 56,006 25,269 42,671 150,125 79,916
21% 16% 20% 19% 15% Diluted Earnings Per Share 0.69 0.32 0.53 1.86
1.03 Owen Kratz, Chairman and Chief Executive Officer of Cal Dive,
stated, "I am very pleased that we were able to deliver our best
ever quarter despite the negative impact of hurricanes Katrina and
Rita on our Oil and Gas division. As predicted, improved Marine
Contracting results more than offset the deferral of around 2.5
bcfe of production and the significant repair costs mentioned
above. "Our people faced many challenges during the year and once
again they excelled in this quarter by launching ten acquired
assets in our Marine Contracting fleet and by bringing back our oil
and gas production to near pre- storm levels. "We are very proud of
our performance in 2005 and look forward to continued growth and
success during 2006. Our earnings guidance for the year remains in
the range of $2.30 - $3.30 per diluted share (excluding the
recently announced acquisition of Remington Oil and Gas) and we
will provide our first update to that range at the end of the first
quarter." Financial Highlights * Revenues: The $101.0 million
increase in year-over-year fourth quarter revenues was driven
primarily by significant improvements in Marine Contracting
revenues due to the introduction of newly acquired assets and much
better market conditions. * Margins: 36% was three points better
than the year-ago quarter due to a significant increase in Marine
Contracting margins driven by improved market conditions. *
SG&A: $21.2 million increased $7.1 million from the same period
a year ago due primarily to additional incentive compensation
accruals as a result of improved profitability. This level of
SG&A was 8% of fourth quarter revenues, compared to 9% in the
year ago quarter. * Equity in Earnings: $5.3 million reflects our
share of Deepwater Gateway, L.L.C.'s earnings for the quarter
relating to the Marco Polo facility as well as our share of
Offshore Technology Services Limited's earnings which is the
Trinidadian company to which we contributed the Witch Queen. *
Income Tax Provision: The Company's effective tax rate fell to 27%
in the fourth quarter, resulting in a 33% effective rate for the
full year 2005. This was primarily due to the Company's ability to
realize foreign tax credits and oil and gas percentage depletion
due to improved profitability both domestically and in foreign
jurisdictions and implementation of the Internal Revenue Code 199
manufacturing deduction as it relates to oil and gas production.
This resulted in a benefit for the fourth quarter for previously
unrecognized deferred tax assets. We estimate our effective rate
for 2006 will be between 34% and 35%. * Balance Sheet: During the
fourth quarter, the Company acquired the Gulf of Mexico assets from
Stolt Offshore. Total debt as of December 31, 2005 was $447
million. This represents 40% debt to book capitalization and with
$353 million of EBITDA during 2005, this represents 1.3 times
trailing twelve month EBITDA. In addition, the Company had $91
million of unrestricted cash as of December 31, 2005. Most of these
funds will be utilized for the final phases of the acquisition of
certain assets of Stolt Offshore. 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 Standard Time on Wednesday, March
1, 2006, 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. FORWARD-LOOKING STATEMENTS 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; future production volumes, results of exploration,
exploitation, development, acquisition and operations expenditures,
and prospective reserve levels of property or wells; 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; any statements regarding the proposed merger
of Remington Oil and Gas Corporation into a wholly owned subsidiary
of Cal Dive or the anticipated results (financial or otherwise)
thereof; 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, geologic risks 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; and,
with respect to the proposed Remington merger, actual results could
differ materially from Cal Dive's expectations depending on factors
such as the combined company's cost of capital, the ability of the
combined company to identify and implement cost savings, synergies
and efficiencies in the time frame needed to achieve these
expectations, prior contractual commitments of the combined
companies and their ability to terminate these commitments or
amend, renegotiate or settle the same, the combined company's
actual capital needs, the absence of any material incident of
property damage or other hazard that could affect the need to
effect capital expenditures, any unforeseen merger or acquisition
opportunities that could affect capital needs, the costs incurred
in implementing synergies and the factors that generally affect
both Cal Dive's and Remington's respective businesses as further
outlined in "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in each of the companies'
respective Annual Reports on Form 10-K for the year ended December
31, 2004. Actual actions that the combined company may take may
differ from time to time as the combined company may deem necessary
or advisable in the best interest of the combined company and its
shareholders to attempt to achieve the successful integration of
the companies, the synergies needed to make the transaction a
financial success and to react to the economy and the combined
company's market for its exploration and production. We assume no
obligation and do not intend to update these forward-looking
statements. Additional Information Cal Dive and Remington will file
a proxy statement/prospectus and other relevant documents
concerning the proposed merger transaction with the Securities and
Exchange Commission ("SEC"). Investors are urged to read the proxy
statement/prospectus when it becomes available and any other
relevant documents filed with the SEC because they will contain
important information. You will be able to obtain the documents
free of charge at the website maintained by the SEC at
http://www.sec.gov/ . In addition, you may obtain documents filed
with the SEC by Cal Dive free of charge by requesting them in
writing from Cal Dive or by telephone at (281) 618-0400. You may
obtain documents filed with the SEC by Remington free of charge by
requesting them in writing from Remington or by telephone at (214)
210-2650. Cal Dive and Remington, and their respective directors
and executive officers, may be deemed to be participants in the
solicitation of proxies from the stockholders of Remington in
connection with the merger. Information about the directors and
executive officers of Cal Dive and their ownership of Cal Dive
stock is set forth in the proxy statement for Cal Dive's 2005
Annual Meeting of Shareholders. Information about the directors and
executive officers of Remington and their ownership of Remington
stock is set forth in the proxy statement for Remington's 2005
Annual Meeting of Stockholders. Investors may obtain additional
information regarding the interests of such participants by reading
the proxy statement/prospectus when it becomes available. CAL DIVE
INTERNATIONAL, INC. Comparative Condensed Consolidated Statements
of Operations Three Months Ended Twelve Months Ended (000's
omitted, except Dec. 31, Dec. 31, per share data) 2005 2004 2005
2004 (unaudited) Net Revenues $264,028 $162,990 $799,472 $543,392
Cost of Sales 168,176 109,960 516,400 371,480 Gross Profit 95,852
53,030 283,072 171,912 Gain on Sale of Assets, net 151 --- 1,405
--- Selling and Administrative 21,202 14,135 62,790 48,881 Income
from Operations 74,801 38,895 221,687 123,031 Equity in Earnings of
Investments 5,301 3,555 13,459 7,927 Interest Expense, net &
Other 2,691 1,631 7,559 5,265 Income Before Income Taxes 77,411
40,819 227,587 125,693 Income Tax Provision 20,601 14,548 75,019
43,034 Net Income 56,810 26,271 152,568 82,659 Preferred Stock
Dividends and Accretion 804 1,002 2,454 2,743 Net Income Applicable
to Common Shareholders $56,006 $25,269 $150,114 $79,916 Other
Financial Data: Income from Operations $74,801 $38,895 $221,687
$123,031 Equity in Earnings of Investments 5,301 3,555 13,459 7,927
Share of Equity Investments: Depreciation 1,220 1,025 4,427 3,009
Interest Expense, net 46 205 1,608 2,179 Depreciation and
Amortization: Marine Contracting 11,199 12,397 40,836 39,259 Oil
and Gas Production 15,559 16,963 70,637 69,046 EBITDA (A) $108,126
$73,040 $352,654 $244,451 Weighted Avg. Shares Outstanding: Basic
77,659 76,789 77,444 76,409 Diluted 82,876 79,230 82,205 79,062
Earnings Per Share: Basic $0.72 $0.33 $1.94 $1.05 Diluted $0.69
$0.32 $1.86 $1.03 (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 Equity
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) Dec. 31, 2005 Dec. 31, 2004
(unaudited) Current Assets: Cash and equivalents $91,080 $91,142
Accounts receivable 228,058 114,709 Other current assets 52,915
48,110 Total Current Assets 372,053 253,961 Net Property &
Equipment: Marine Contracting 524,890 411,596 Oil and Gas
Production 391,472 172,821 Equity Investments 179,556 67,192
Goodwill 101,731 84,193 Other assets, net 91,162 48,995 Total
Assets $1,660,864 $1,038,758 LIABILITIES & SHAREHOLDERS' EQUITY
Dec. 31, 2005 Dec. 31, 2004 (unaudited) Current Liabilities:
Accounts payable $99,445 $56,047 Accrued liabilities 148,789 75,502
Current mat of L-T debt (B) 6,468 9,613 Total Current Liabilities
254,702 141,162 Long-term debt (B) 440,703 138,947 Deferred income
taxes 164,258 133,777 Decommissioning liabilities 106,317 79,490
Other long term liabilities 10,584 5,090 Convertible preferred
stock (B) 55,000 55,000 Shareholders' equity (B) 629,300 485,292
Total Liabilities & Equity $1,660,864 $1,038,758 (B) Debt to
book capitalization - 40%. Calculated as total debt ($447,171)
divided by sum of total debt, convertible preferred stock and
shareholders' equity ($1,131,471). 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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