Tidewater Reports Results for the Three and Six Months Ended June 30, 2022

August 04, 2022 at 16:15 PM EDT

Completed Acquisition of Swire Pacific Offshore
Adjusted EBITDA Increased From $8.7 million to $39.1 million Compared to the Second Quarter of 2021
Average Day Rate Increases to $12,544; Up 17% sequentially; Highest since Q3 2016
Vessel Level Cash Margin Increased From 27.4% to 38.2% and Global Fleet Utilization Increased From 57.0% to 75.5% Compared to the Second Quarter of 2021
Average Active Vessels Increased From 118 to 172 Compared to the Second Quarter of 2021, Inclusive of the Swire Pacific Offshore Fleet

Tidewater Inc. (NYSE:TDW) announced today revenue for the three and six months ended June 30, 2022 of $163.4 million and $269.2 million, respectively, compared with $90.0 million and $173.5 million, respectively, for the three and six months ended June 30, 2021. Tidewater's net losses for the three and six months ended June 30, 2022, were $25.6 million ($0.61 per common share) and $37.7 million ($0.91 per common share), respectively, compared with $29.5 million ($0.72 per common share) and $64.8 million ($1.59 per common share), respectively, for the three and six months ended June 30, 2021. Included in the net losses for the three and six months ended June 30, 2022 were merger and severance expenses of $7.3 and $9.6 million, respectively; and loss on warrants of $14.2 million for both periods. Included in the net losses for the six months ended June 30, 2022 were long-lived asset impairment credit and gain on bargain purchase of $1.8 million. Excluding these items, we would have reported a net loss for the three and six months ended June 30, 2022 of $4.1 million ($0.10 per common share) and $15.7 million ($0.38 per common share), respectively. Included in the net losses for the three and six months ended June 30, 2021 were severance expenses of $0.8 and $0.9 million, respectively; and a credit loss impairment credit of $1.0 million for both periods. Excluding these items, we would have reported a net loss for the three and six months ended June 30, 2021 of $29.7 million ($0.73 per common share) and $64.9 million ($1.59 per common share), respectively.

Quintin Kneen, Tidewater’s President and Chief Executive Officer, commented, “We believe the second quarter of 2022 marks the inflection point in the industry that we have long awaited and is now evident in our financial performance. Revenue, gross margin, average day rate and utilization all improved meaningfully during the second quarter as the building momentum in offshore vessel activity reached critical mass. The second quarter results reflect the impact of the Swire Pacific Offshore (SPO) acquisition, necessarily showing a large jump in revenue and vessels worked, but when viewing the quarter on relative metrics, the improvement is clear. The average day rate improved by nearly $1,900 per day sequentially, which is in excess of the improvement we would typically expect to realize over the course of an entire year in a normal market upcycle. Vessel level cash margin improved to 38%, up approximately four percentage points and continuing to meaningfully outperform the 30% target we have discussed in recent quarters. These improvements during the quarter, particularly the move in day rates, speak to continued demand growth as offshore activity continues to increase and as the vessel supply fundamentals continue to work in our favor given the shortage of available vessels on the market today. We expect activity to continue to improve throughout the remainder of 2022 with another likely step-up in 2023.

“As previously mentioned, we closed on the SPO acquisition on April 22, 2022. Post-closing of the transaction, the legacy SPO fleet contributed approximately $43.2 million of revenue during the second quarter and generated a vessel level cash margin in line with the total fleet vessel level cash margin of 38%. The legacy SPO business incurred approximately $3.9 million of general and administrative expense during the second quarter, down meaningfully from the pre-close run rate as we achieved some early successes in reducing general and administrative expenses as we continue to target $20.0 million in annual general and administrative costs synergies. Overall, we remain confident in our ability to realize total annual cost synergies of $45.0 million, including $25.0 million in annual synergies from operating expenses.

"While there are a variety of macroeconomic factors driving recent market volatility, the current commercial environment for offshore vessel activity remains robust. Commodity prices remain at attractive levels, recent volatility notwithstanding, providing a compelling economic rationale for our customers to continue driving their spending plans and operational goals. The supply of capable and available vessels continues to tighten. As our vessels continue to roll off older contracts, we are taking advantage of the tight supply environment to drive day rates in a strong demand environment. To illustrate this point, during the second quarter, 24 of our vessels entered new contracts of various duration that will ultimately provide a nearly 50% aggregate uplift in day rate as compared to the previous aggregate contracted day rates. Commercial momentum for new contracts is broad-based, evident in all of our operating regions and in all of our vessel classes, with West Africa and our largest PSV class notable drivers of this improvement. We remain mindful of inflation pressures that inevitably impact our business in our commercial strategy and believe that the market tightness will allow for net pricing improvements well in-excess of the impact of any inflation we may incur.

“The various initiatives we have executed over the past several years have prepared us to reap the benefits of the rapidly improving market we are currently experiencing. Building a strong leadership team positioned us to weather market challenges and position the company to take advantage of improved market fundamentals. Optimizing the organizational cost structure positioned us to maximize margins. Streamlining the fleet positioned us to offer the highest quality vessels to the market that can command the best pricing. Addressing the balance sheet positioned us to operate with a high degree of financial flexibility. Acquiring SPO positioned us to transform the company into a global leader in offshore support vessels with additional exposure to the world’s highest growth markets.

“The combination of initiatives we have successfully executed, combined with the market dynamics we are currently experiencing, has set up Tidewater as one of the largest and most efficient OSV operators globally, and has the company poised to create significant value over the coming quarters and years. The combination of high operating leverage and low financial leverage positions Tidewater to generate significant cash returns from its operating activities and the option to further leverage those returns. We remain committed to pursuing executional excellence in all facets of our business. Moving forward, we expect to continue to drive utilization and day rates, execute on realizing continued efficiencies within the business, including our commitment to realizing the synergies associated with SPO, and to opportunistically pursue platform-enhancing, value accretive strategic transactions.

“This is an exciting time for the company, and we expect all of Tidewater’s stakeholders to benefit from the continued improvement in the business. I want to thank all of our employees, including our new employees from SPO, for their continued hard work to position Tidewater to capitalize on what looks to be the best market for offshore vessels in recent memory.”

In addition to the number of outstanding shares, as of June 30, 2022, the company also has the following in-the-money warrants.

Common shares outstanding			42,029,882
New Creditor Warrants (strike price $0.001 per common share)			395,401
GulfMark Creditor Warrants (strike price $0.01 per common share)			309,351
SPO acquisition warrants (strike price $0.001 per common share)			8,100,000
Total			50,834,634

Tidewater will hold a conference call to discuss results for the three and six months ending June 30, 2022 on August 5, 2022, at 8:00 a.m. Central Time. Investors and interested parties may listen to the earnings conference call via telephone by calling +1.888.770.7135 if calling from the U.S. or Canada (+1.929.203.0820 if calling from outside the U.S.) and provide Access Code: 2444624 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 August 5, 2022 and will continue until 11:59 p.m. Central Time on September 10, 2022. To access the replay, visit the Investor Relations section of Tidewater’s website at investor.tdw.com.

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 involves 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 most recent Forms 10-Q and 10-K.

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.

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 June 30, 2022 and December 31, 2021; the Consolidated Statements of Operations and Consolidated Statements of Equity for the three and six months ended June 30, 2022 and 2021; and the Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021. Extracts are drawn from the June 30, 2022 unaudited quarterly and year to date financial statements and the December 31, 2021 audited annual financial statements of Tidewater Inc. All per-share amounts are stated on a diluted basis.

In conjunction with the acquisition of Swire Pacific Offshore (SPO), we realigned our reportable segments to better reflect the post-acquisition operating environment. The previous Middle East/Asia Pacific segment has been split into the Middle East segment and the Asia Pacific segment. Our previous operations in Southeast Asia and Australia, along with the legacy SPO operations in the Asia Pacific region, now form the new Asia Pacific segment. Our segment disclosures reflect the current segment alignment for all periods presented.

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

	Three Months Ended						Six Months Ended
	June 30, 2022			June 30, 2021			June 30, 2022			June 30, 2021
Revenues:
Vessel revenues	$	162,175		$	88,514		$	266,051		$	169,507
Other operating revenues		1,272			1,439			3,125			3,950
Total revenues		163,447			89,953			269,176			173,457
Costs and expenses:
Vessel operating costs		100,257			64,263			168,768			125,283
Costs of other operating revenues		483			581			844			1,648
General and administrative		27,804			16,787			46,021			32,830
Depreciation and amortization		31,766			28,549			58,423			58,276
Long-lived asset impairment credit		—			—			(500	)		—
Affiliate credit loss impairment credit		—			(1,000	)		—			(1,000	)
Loss on asset dispositions, net		1,297			932			1,090			2,880
Total costs and expenses		161,607			110,112			274,646			219,917
Operating income (loss)		1,840			(20,159	)		(5,470	)		(46,460	)
Other income (expense):
Foreign exchange gain (loss)		(1,881	)		422			(935	)		(428	)
Equity in net earnings (losses) of unconsolidated companies		(244	)		52			(244	)		(1,797	)
Interest income and other, net		349			8			3,835			31
Loss on warrants		(14,175	)		—			(14,175	)		—
Interest and other debt costs, net		(4,284	)		(3,944	)		(8,459	)		(8,485	)
Total other expense		(20,235	)		(3,462	)		(19,978	)		(10,679	)
Loss before income taxes		(18,395	)		(23,621	)		(25,448	)		(57,139	)
Income tax expense		6,619			6,026			11,837			8,035
Net loss		(25,014	)		(29,647	)		(37,285	)		(65,174	)
Less: Net income (loss) attributable to noncontrolling interests		567			(185	)		464			(397	)
Net loss attributable to Tidewater Inc.	$	(25,581	)	$	(29,462	)	$	(37,749	)	$	(64,777	)
Basic loss per common share	$	(0.61	)	$	(0.72	)	$	(0.91	)	$	(1.59	)
Diluted loss per common share	$	(0.61	)	$	(0.72	)	$	(0.91	)	$	(1.59	)
Weighted average common shares outstanding		41,814			40,899			41,614			40,808
Adjusted weighted average common shares		41,814			40,899			41,614			40,808

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

	June 30, 2022			December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	87,981		$	149,037
Restricted cash		1,240			1,240
Trade and other receivables, less allowance for credit losses of $2,288 and $1,948 as of June 30, 2022 and 2021, respectively		189,259			86,503
Due from affiliates, less allowance for credit losses of $12,215 and $72,456 as of June 30, 2022 and 2021, respectively		—			70,134
Marine operating supplies		21,182			12,606
Assets held for sale		6,862			14,421
Prepaid expenses and other current assets		23,259			8,731
Total current assets		329,783			342,672
Net properties and equipment		838,612			688,040
Deferred drydocking and survey costs		53,661			40,734
Indemnification assets		30,269			—
Other assets		30,410			24,334
Total assets	$	1,282,735		$	1,095,780

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	30,537		$	20,788
Accrued costs and expenses		109,212			51,734
Due to affiliates		—			61,555
Other current liabilities		47,872			23,865
Total current liabilities		187,621			157,942
Long-term debt		168,279			167,885
Other liabilities and deferred credits		85,188			68,184

Commitments and contingencies

Equity:
Common stock		42			41
Additional paid-in-capital		1,554,561			1,376,494
Accumulated deficit		(715,649	)		(677,900	)
Accumulated other comprehensive loss		1,763			2,668
Total stockholders' equity		840,717			701,303
Noncontrolling interests		930			466
Total equity		841,647			701,769
Total liabilities and equity	$	1,282,735		$	1,095,780

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

	Three Months Ended						Six Months Ended
	June 30, 2022			June 30, 2021			June 30, 2022			June 30, 2021
Net loss	$	(25,014	)	$	(29,647	)	$	(37,285	)	$	(65,174	)
Other comprehensive loss:
Unrealized loss on note receivable		(846	)		—			(846	)		—
Change in liability of pension plans		138			(207	)		(59	)		(278	)
Total comprehensive loss	$	(25,722	)	$	(29,854	)	$	(38,190	)	$	(65,452	)

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

	Six Months			Six Months
	Ended			Ended
	June 30, 2022			June 30, 2021
Operating activities:
Net loss	$	(37,285	)	$	(65,174	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		40,287			36,694
Amortization of deferred drydocking and survey costs		18,136			21,582
Amortization of debt premiums and discounts		765			1,986
Provision for deferred income taxes		145			648
Loss on asset dispositions, net		1,090			2,880
Gain on bargain purchase		(1,300	)		—
Loss on debt extinguishment		—			59
Affiliate credit loss impairment credit		—			(1,000	)
Long-lived asset impairment credit		(500	)		—
Loss on warrants		14,175			—
Stock-based compensation expense		3,421			2,676
Changes in assets and liabilities, net of effects of business acquisition:
Trade and other receivables		(35,085	)		22,394
Changes in due to/from affiliate, net		(20	)		4,693
Accounts payable		8,072			(792	)
Accrued expenses		2,354			(2,074	)
Deferred drydocking and survey costs		(31,063	)		(6,771	)
Other, net		(16,419	)		(7,234	)
Net cash provided by (used in) operating activities		(33,227	)		10,567
Cash flows from investing activities:
Proceeds from sales of assets		8,163			29,560
Acquisitions, net of cash acquired		(29,525	)		—
Additions to properties and equipment		(5,380	)		(1,861	)
Net cash provided by (used in) investing activities		(26,742	)		27,699
Cash flows from financing activities:
Principal payments on long-term debt		—			(37,901	)
Debt issuance and modification costs		(371	)		(855	)
Debt extinguishment premium		—			(59	)
Tax on share-based award		(2,176	)		(758	)
Net cash used in financing activities		(2,547	)		(39,573	)
Net change in cash, cash equivalents and restricted cash		(62,516	)		(1,307	)
Cash, cash equivalents and restricted cash at beginning of period		154,276			155,225
Cash, cash equivalents and restricted cash at end of period	$	91,760		$	153,918


Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest, net of amounts capitalized	$	7,626	$	7,028
Income taxes	$	9,330	$	6,609
Supplemental disclosure of noncash investing activities:
Acquisition of SPO	$	162,648	$	—
Supplemental disclosure of noncash financing activities:
Warrants issued for SPO acquisition	$	162,648	$	—

Note: Cash, cash equivalents and restricted cash at June 30, 2022 includes $2.5 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)			loss			interest			Total
Balance at March 31, 2022	$	42	$	1,376,934	$	(690,068	)	$	2,471		$	363		$	689,742
Total comprehensive income (loss)		—		—		(25,581	)		(708	)		567			(25,722	)
SPO acquisition warrants		—		176,823		—			—			—			176,823
Amortization of share-based awards		—		804		—			—			—			804
Balance at June 30, 2022	$	42	$	1,554,561	$	(715,649	)	$	1,763		$	930		$	841,647

Balance at March 31, 2021	$	41	$	1,372,846	$	(584,246	)	$	(875	)	$	945		$	788,711
Total comprehensive loss		—		—		(29,462	)		(207	)		(185	)		(29,854	)
Amortization of share-based awards		—		881		—			—			—			881
Balance at June 30, 2021	$	41	$	1,373,727	$	(613,708	)	$	(1,082	)	$	760		$	759,738

	Six Months Ended
									Accumulated
			Additional						other			Non
	Common		paid-in			Accumulated			comprehensive			controlling
	stock		capital			deficit			income (loss)			interest			Total
Balance at December 31, 2021	$	41	$	1,376,494		$	(677,900	)	$	2,668		$	466		$	701,769
Total comprehensive income (loss)		—		—			(37,749	)		(905	)		464			(38,190	)
Issuance of common stock		1		(1	)		—			—			—			—
SPO acquisition warrants		—		176,823			—			—			—			176,823
Amortization of share-based awards		—		1,245			—			—			—			1,245
Balance at June 30, 2022	$	42	$	1,554,561		$	(715,649	)	$	1,763		$	930		$	841,647


Balance at December 31, 2020	$	41	$	1,371,809		$	(548,931	)	$	(804	)	$	1,157		$	823,272
Total comprehensive loss		—		—			(64,777	)		(278	)		(397	)		(65,452	)
Amortization of share-based awards		—		1,918			—			—			—			1,918
Balance at June 30, 2021	$	41	$	1,373,727		$	(613,708	)	$	(1,082	)	$	760		$	759,738

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									Six Months Ended
	June 30, 2022				June 30, 2021					June 30, 2022				June 30, 2021
Vessel revenues:
Americas	$	37,520	23	%	$	23,481		27	%	$	65,964	25	%	$	49,705	29	%
Asia Pacific		16,362	10	%		4,870		6	%		21,259	8	%		8,442	5	%
Middle East		28,396	18	%		20,758		23	%		48,614	18	%		41,600	25	%
Europe/Mediterranean		32,475	20	%		22,467		25	%		56,394	21	%		37,216	22	%
West Africa		47,422	29	%		16,938		19	%		73,820	28	%		32,544	19	%
Total vessel revenues	$	162,175	100	%	$	88,514		100	%	$	266,051	100	%	$	169,507	100	%
Vessel operating costs:
Crew costs	$	60,639	37	%	$	37,685		43	%	$	101,476	38	%	$	72,847	43	%
Repair and maintenance		13,477	8	%		9,534		11	%		22,938	9	%		18,971	11	%
Insurance		1,366	1	%		(137	)	(0	)%		2,750	1	%		486	1	%
Fuel, lube and supplies		11,521	7	%		6,541		7	%		18,597	7	%		12,401	7	%
Other		13,254	8	%		10,640		12	%		23,007	9	%		20,578	12	%
Total vessel operating costs		100,257	62	%		64,263		73	%		168,768	63	%		125,283	74	%
Vessel operating margin (A)	$	61,918	38	%	$	24,251		27	%	$	97,283	37	%	$	44,224	26	%

Note (A): Vessel operating margin equals revenues less vessel operating costs and excludes general and administrative expenses and depreciation and amortization.

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

(In Thousands)	Three Months Ended										Six Months Ended
	June 30, 2022					June 30, 2021					June 30, 2022					June 30, 2021
Vessel operating profit (loss):
Americas	$	5,930		4	%	$	(4,940	)	(5	)%	$	5,848		2	%	$	(6,591	)	(4	)%
Asia Pacific		(899	)	(1	)%		1,722		2	%		1,274		0	%		1,667		1	%
Middle East		(307	)	(0	)%		(1,456	)	(2	)%		(2,190	)	(1	)%		(3,254	)	(2	)%
Europe/Mediterranean		4,262		3	%		(1,986	)	(2	)%		1,833		1	%		(10,007	)	(6	)%
West Africa		9,270		6	%		(5,355	)	(6	)%		12,485		5	%		(12,122	)	(7	)%
Other operating profit		790		0	%		858		1	%		2,282		1	%		2,302		1	%
		19,046		12	%		(11,157	)	(12	)%		21,532		8	%		(28,005	)	(16	)%

Corporate expenses (A)		(15,909	)	(10	)%		(9,070	)	(10	)%		(26,412	)	(10	)%		(16,575	)	(10	)%
Loss on asset dispositions, net		(1,297	)	(1	)%		(932	)	(1	)%		(1,090	)	(0	)%		(2,880	)	(2	)%
Affiliate credit loss impairment credit		—		0	%		1,000		1	%		—		0	%		1,000		1	%
Long-lived asset impairments and other		—		0	%		—		0	%		500		0	%		—		0	%
Operating loss	$	1,840		1	%	$	(20,159	)	(22	)%	$	(5,470	)	(2	)%	$	(46,460	)	(27	)%

Note (A): General and administrative expenses for the three months and six months ended June 30, 2022 include stock-based compensation of $1.9 million and $3.4 million, respectively. General and administrative expenses for the three and six months ended June 30, 2021 include stock-based compensation of $1.5 million and $2.7 million, respectively. In addition, vessel operating and general and administrative costs for the three months and six months ended June 30, 2022, include $7.3 million and $9.6 million in one-time acquisition, restructuring and integration related costs, respectively. Vessel operating and general and administrative costs for the three and six months ended June 30, 2021, include $0.8 million and $0.9 million in one-time restructuring and integration related costs, respectively.

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

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2022			2022			2021			2021			2021
Revenues:
Vessel revenues	$	162,175		$	103,876		$	100,428		$	91,634		$	88,514
Other operating revenues		1,272			1,853			4,747			767			1,439
Total revenues		163,447			105,729			105,175			92,401			89,953
Costs and expenses:
Vessel operating costs (A)		100,257			68,511			71,187			65,344			64,263
Costs of other operating revenue		483			361			228			355			581
General and administrative (A)		27,804			18,217			17,641			18,045			16,787
Depreciation and amortization		31,766			26,657			28,288			27,980			28,549
Long-lived asset impairment (credit) and other		—			(500	)		13,476			2,167			—
Affiliate credit loss impairment expense (credit)		—			—			1,400			—			(1,000	)
(Gain) loss on asset dispositions, net		1,297			(207	)		(53	)		74			932
Total operating costs and expenses		161,607			113,039			132,167			113,965			110,112
Operating loss		1,840			(7,310	)		(26,992	)		(21,564	)		(20,159	)
Other income (expense):
Foreign exchange gain (loss)		(1,881	)		946			582			(523	)		422
Equity in net earnings (losses) of unconsolidated companies		(244	)		—			(1,625	)		100			52
Interest income and other, net		349			3,486			1,426			148			8
Loss on early extinguishment of debt		—			—			(11,100	)		—			—
Loss on warrants		(14,175	)		—			—			—			—
Interest and other debt costs, net		(4,284	)		(4,175	)		(3,417	)		(3,681	)		(3,944	)
Total other expense		(20,235	)		257			(14,134	)		(3,956	)		(3,462	)
Loss before income taxes		(18,395	)		(7,053	)		(41,126	)		(25,520	)		(23,621	)
Income tax (benefit) expense		6,619			5,218			(3,047	)		887			6,026
Net loss		(25,014	)		(12,271	)		(38,079	)		(26,407	)		(29,647	)
Net loss attributable to noncontrolling interests		567			(103	)		(145	)		(149	)		(185	)
Net loss attributable to Tidewater Inc.	$	(25,581	)	$	(12,168	)	$	(37,934	)	$	(26,258	)	$	(29,462	)
Basic loss per common share	$	(0.61	)	$	(0.29	)	$	(0.92	)	$	(0.64	)	$	(0.72	)
Diluted loss per common share	$	(0.61	)	$	(0.29	)	$	(0.92	)	$	(0.64	)	$	(0.72	)
Weighted average common shares outstanding		41,814			41,412			41,280			41,132			40,899
Adjusted weighted average common shares		41,814			41,412			41,280			41,132			40,899

Vessel operating margin	$	61,918		$	35,365		$	29,241		$	26,290		$	24,251

Note (A): One-time acquisition, restructuring and integration related costs	$	7,314		$	2,305		$	221		$	112		$	795

TIDEWATER INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands)

	June 30,			March 31,			December 31,			September 30,			June 30,
	2022			2022			2021			2021			2021
ASSETS
Current assets:
Cash and cash equivalents	$	87,981		$	136,234		$	149,037		$	127,414		$	131,157
Restricted cash		1,240			4,958			1,240			24,092			20,284
Trade and other receivables, net		189,259			112,953			86,503			86,015			90,229
Due from affiliates, less allowances		—			21,191			70,134			68,217			64,922
Marine operating supplies		21,182			13,252			12,606			13,335			15,404
Assets held for sale		6,862			8,591			14,421			17,891			17,214
Prepaid expenses and other current assets		23,259			12,012			8,731			13,129			15,953
Total current assets		329,783			309,191			342,672			350,093			355,163
Net properties and equipment		838,612			677,580			688,040			709,324			731,659
Deferred drydocking and survey costs		53,661			44,362			40,734			40,510			40,372
Indemnification assets		30,269			—			—			—			—
Other assets		30,410			22,997			24,334			23,146			24,539
Total assets	$	1,282,735		$	1,054,130		$	1,095,780		$	1,123,073		$	1,151,733

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	30,537		$	23,696		$	20,788		$	18,042		$	16,189
Accrued costs and expenses		109,212			55,141			51,734			52,133			50,532
Due to affiliates		—			21,191			61,555			59,571			59,759
Current portion of long-term debt		—			—			—			140,995			7,355
Other current liabilities		47,872			25,471			23,865			29,139			28,825
Total current liabilities		187,621			125,499			157,942			299,880			162,660
Long-term debt		168,279			167,997			167,885			14,139			148,612
Other liabilities and deferred credits		85,188			70,892			68,184			74,442			80,723


Equity:
Common stock		42			42			41			41			41
Additional paid-in-capital		1,554,561			1,376,934			1,376,494			1,375,215			1,373,727
Accumulated deficit		(715,649	)		(690,068	)		(677,900	)		(639,966	)		(613,708	)
Accumulated other comprehensive income (loss)		1,763			2,471			2,668			(1,289	)		(1,082	)
Total stockholders' equity		840,717			689,379			701,303			734,001			758,978
Noncontrolling interests		930			363			466			611			760
Total equity		841,647			689,742			701,769			734,612			759,738
Total liabilities and equity	$	1,282,735		$	1,054,130		$	1,095,780		$	1,123,073		$	1,151,733

Supplemental information
Due from related parties, net of due to related parties:
Sonatide (Angola)	$	—		$	—		$	8,579		$	8,646		$	5,163

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

	Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2022		2022		2021		2021		2021
VESSEL REVENUE BY VESSEL CLASS

Americas fleet:
Deepwater	$	30,768	$	21,711	$	21,658	$	18,961	$	17,796
Towing-supply		4,864		5,596		5,062		4,440		4,535
Other		1,888		1,137		1,162		1,163		1,150
Total		37,520		28,444		27,882		24,564		23,481
Asia Pacific fleet:
Deepwater		11,769		3,923		3,951		3,899		3,897
Towing-supply		4,372		974		963		887		973
Other		221		—		—		—		—
Total		16,362		4,897		4,914		4,786		4,870
Middle East fleet:
Deepwater		19,744		12,599		13,360		13,393		13,367
Towing-supply		8,652		7,619		8,588		7,454		7,391
Total		28,396		20,218		21,948		20,847		20,758
Europe/Mediterranean fleet:
Deepwater		32,328		23,765		22,344		21,037		22,293
Towing-supply		—		—		—		—		11
Other		147		154		157		160		163
Total		32,475		23,919		22,501		21,197		22,467
West Africa fleet:
Deepwater		27,699		14,746		13,658		10,967		8,814
Towing-supply		14,464		6,597		5,807		5,474		5,564
Other		5,259		5,055		3,718		3,799		2,560
Total		47,422		26,398		23,183		20,240		16,938
Worldwide fleet:
Deepwater		122,308		76,744		74,971		68,257		66,167
Towing-supply		32,352		20,786		20,420		18,255		18,474
Other		7,515		6,346		5,037		5,122		3,873
Total	$	162,175	$	103,876	$	100,428	$	91,634	$	88,514

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2022			2022			2021			2021			2021
AVERAGE NUMBER OF VESSELS:

Americas fleet:
Deepwater		25			24			25			25			27
Towing-supply		8			8			8			8			8
Other		1			2			2			3			3
Total		34			34			35			36			38
Stacked vessels		(5	)		(7	)		(9	)		(11	)		(13	)
Active vessels		29			27			26			25			25
Asia Pacific fleet:
Deepwater		10			3			3			3			3
Towing-supply		5			2			2			2			2
Other		4			—			—			—			—
Total		19			5			5			5			5
Stacked vessels		(1	)		—			—			—			—
Active vessels		18			5			5			5			5
Middle East fleet:
Deepwater		24			17			17			17			17
Towing-supply		17			16			16			16			16
Total		41			33			33			33			33
Stacked vessels		—			—			(1	)		(1	)		(1	)
Active vessels		41			33			32			32			32
Europe/Mediterranean fleet:
Deepwater		27			28			28			28			29
Total		27			28			28			28			29
Stacked vessels		(2	)		(4	)		(5	)		(7	)		(8	)
Active vessels		25			24			23			21			21
West Africa fleet:
Deepwater		25			17			18			19			20
Towing-supply		16			9			10			11			11
Other		26			26			24			25			26
Total		67			52			52			55			57
Stacked vessels		(8	)		(10	)		(13	)		(19	)		(22	)
Active vessels		59			42			39			36			35
Worldwide fleet:
Deepwater		111			89			91			92			96
Towing-supply		46			35			36			37			37
Other		31			28			26			28			29
Total		188			152			153			157			162
Stacked vessels		(16	)		(21	)		(28	)		(38	)		(44	)
Active vessels		172			131			125			119			118

Total active		172			131			125			119			118
Total stacked		16			21			28			38			44
Total joint venture		1			1			3			3			3
Total		189			153			156			160			165

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA

	Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2022		2022		2021		2021		2021
AVAILABLE DAYS - TOTAL FLEET:

Americas fleet:
Deepwater		2,278		2,160		2,269		2,300		2,497
Towing-supply		701		720		736		736		728
Other		121		145		184		244		273
Total		3,100		3,025		3,189		3,280		3,498
Asia Pacific fleet:
Deepwater		873		270		276		276		273
Towing-supply		487		180		184		184		182
Other		392		—		—		—		—
Total		1,752		450		460		460		455
Middle East fleet:
Deepwater		2,156		1,539		1,564		1,564		1,547
Towing-supply		1,547		1,448		1,472		1,472		1,485
Total		3,703		2,987		3,036		3,036		3,032
Europe/Mediterranean fleet:
Deepwater		2,486		2,536		2,607		2,612		2,672
Total		2,486		2,536		2,607		2,612		2,672
West Africa fleet:
Deepwater		2,260		1,553		1,656		1,718		1,853
Towing-supply		1,460		815		920		1,011		1,001
Other		2,366		2,340		2,208		2,328		2,366
Total		6,086		4,708		4,784		5,057		5,220
Worldwide fleet:
Deepwater		10,053		8,058		8,372		8,470		8,842
Towing-supply		4,195		3,163		3,312		3,403		3,396
Other		2,879		2,485		2,392		2,572		2,639
Total		17,127		13,706		14,076		14,445		14,877

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA

	Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2022		2022		2021		2021		2021
OUT-OF-SERVICE - STACKED DAYS:

Americas fleet:
Deepwater		428		450		621		814		889
Towing-supply		64		90		92		92		91
Other		—		55		92		152		182
Total		492		595		805		1,058		1,162
Asia Pacific fleet:
Deepwater		61		—		—		—		—
Total		61		—		—		—		—
Middle East fleet:
Deepwater		—		25		92		92		91
Towing-supply		—		—		—		—		29
Total		—		25		92		92		120
Europe/Mediterranean fleet:
Deepwater		150		376		474		641		766
Total		150		376		474		641		766
West Africa fleet:
Deepwater		18		203		307		537		852
Towing-supply		238		275		382		551		516
Other		496		450		506		655		637
Total		752		928		1,195		1,743		2,005
Worldwide fleet:
Deepwater		657		1,054		1,494		2,084		2,598
Towing-supply		302		365		474		643		636
Other		496		505		598		807		819
Total		1,455		1,924		2,566		3,534		4,053

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA

	Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2022		2022		2021		2021		2021
AVAILABLE DAYS - ACTIVE FLEET:

Americas fleet:
Deepwater		1,850		1,710		1,648		1,486		1,608
Towing-supply		637		630		644		644		637
Other		121		90		92		92		91
Total		2,608		2,430		2,384		2,222		2,336
Asia Pacific fleet:
Deepwater		812		270		276		276		273
Towing-supply		487		180		184		184		182
Other		392		—		—		—		—
Total		1,691		450		460		460		455
Middle East fleet:
Deepwater		2,156		1,514		1,472		1,472		1,456
Towing-supply		1,547		1,448		1,472		1,472		1,456
Total		3,703		2,962		2,944		2,944		2,912
Europe/Mediterranean fleet:
Deepwater		2,336		2,160		2,133		1,971		1,906
Total		2,336		2,160		2,133		1,971		1,906
West Africa fleet:
Deepwater		2,242		1,350		1,349		1,181		1,001
Towing-supply		1,222		540		538		460		485
Other		1,870		1,890		1,702		1,673		1,729
Total		5,334		3,780		3,589		3,314		3,215
Worldwide fleet:
Deepwater		9,396		7,004		6,878		6,386		6,244
Towing-supply		3,893		2,798		2,838		2,760		2,760
Other		2,383		1,980		1,794		1,765		1,820
Total		15,672		11,782		11,510		10,911		10,824

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2022			2022			2021			2021			2021
UTILIZATION - TOTAL FLEET:

Americas fleet:
Deepwater		71.3	%		59.3	%		57.0	%		53.0	%		45.6	%
Towing-supply		74.2			64.6			71.4			64.9			76.3
Other		100.0			62.1			50.0			37.7			33.3
Total		73.0	%		60.7	%		59.9	%		54.5	%		51.0	%
Asia Pacific fleet:
Deepwater		59.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Towing-supply		69.8			97.9			100.0			90.2			100.0
Other		85.5			—			—			—			—
Total		67.9	%		99.2	%		100.0	%		96.1	%		100.0	%
Middle East fleet:
Deepwater		79.2	%		81.8	%		82.8	%		83.8	%		86.2	%
Towing-supply		83.0			84.2			93.5			82.9			80.4
Total		80.8	%		82.9	%		88.0	%		83.4	%		83.4	%
Europe/Mediterranean fleet:
Deepwater		82.8	%		77.8	%		72.4	%		68.3	%		64.7	%
Total		82.8	%		77.8	%		72.4	%		68.3	%		64.7	%
West Africa fleet:
Deepwater		87.4	%		75.9	%		65.7	%		54.6	%		42.3	%
Towing-supply		78.2			65.9			50.0			40.0			38.4
Other		55.2			54.4			45.9			43.9			34.6
Total		72.7	%		63.5	%		53.5	%		46.7	%		38.1	%
Worldwide fleet:
Deepwater		78.4	%		74.0	%		69.7	%		65.2	%		59.4	%
Towing-supply		78.4			75.8			76.9			66.6			68.2
Other		61.2			54.8			46.2			43.3			34.5
Total		75.5	%		70.9	%		67.4	%		61.7	%		57.0	%

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2022			2022			2021			2021			2021
UTILIZATION - ACTIVE FLEET:

Americas fleet:
Deepwater		87.7	%		74.8	%		78.4	%		82.0	%		70.7	%
Towing-supply		81.7			73.8			81.5			74.1			87.2
Other		100.0			100.0			100.0			100.0			100.0
Total		86.8	%		75.5	%		80.1	%		80.4	%		76.4	%
Asia Pacific fleet:
Deepwater		63.4	%		100.0	%		100.0	%		100.0	%		100.0	%
Towing-supply		69.8			97.9			100.0			90.2			100.0
Other		85.5			—			—			—			—
Total		70.4	%		99.2	%		100.0	%		96.1	%		100.0	%
Middle East fleet:
Deepwater		79.2	%		83.1	%		88.0	%		89.0	%		91.6	%
Towing-supply		83.0			84.2			93.5			82.9			82.0
Total		80.8	%		83.6	%		90.7	%		86.0	%		86.8	%
Europe/Mediterranean fleet:
Deepwater		88.1	%		91.3	%		88.5	%		90.5	%		90.6	%
Total		88.1	%		91.3	%		88.5	%		90.5	%		90.6	%
West Africa fleet:
Deepwater		88.1	%		87.3	%		80.7	%		79.4	%		78.3	%
Towing-supply		93.5			99.5			85.5			87.9			79.2
Other		69.8			67.3			59.5			61.1			47.4
Total		82.9	%		79.1	%		71.4	%		71.3	%		61.8	%
Worldwide fleet:
Deepwater		83.9	%		85.1	%		84.9	%		86.5	%		84.2	%
Towing-supply		84.4			85.7			89.7			82.2			83.9
Other		73.9			68.8			61.6			63.1			50.0
Total		82.5	%		82.5	%		82.4	%		81.6	%		78.4	%

TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA

	Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2022		2022		2021		2021		2021
AVERAGE VESSEL DAY RATES: (A)

Americas fleet:
Deepwater	$	18,955	$	16,964	$	16,760	$	15,568	$	15,646
Towing-supply		9,350		12,030		9,638		9,298		8,162
Other		15,601		12,633		12,644		12,640		12,634
Total		16,569		15,501		14,603		13,742		13,162
Asia Pacific fleet:
Deepwater		22,844		14,529		14,315		14,126		14,275
Towing-supply		12,862		5,528		5,236		5,346		5,346
Total		13,748		10,975		10,683		10,830		10,704
Middle East fleet:
Deepwater		11,561		10,011		10,319		10,219		10,020
Towing-supply		6,736		6,249		6,240		6,110		6,192
Total		9,490		8,160		8,217		8,238		8,213
Europe/Mediterranean fleet:
Deepwater		15,705		12,046		11,834		11,800		12,905
Total		15,776		12,124		11,917		11,890		13,005
West Africa fleet:
Deepwater		14,026		12,516		12,553		11,700		11,242
Towing-supply		12,661		12,275		12,624		13,536		14,480
Other		4,026		3,972		3,669		3,717		3,124
Total		10,721		8,834		9,052		8,562		8,521
Worldwide fleet:
Deepwater		15,522		12,878		12,840		12,355		12,589
Towing-supply		9,843		8,668		8,022		8,049		7,978
Other		4,264		4,657		4,558		4,598		4,253
Total	$	12,544	$	10,687	$	10,583	$	10,288	$	10,435

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

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

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2022			2022			2021			2021			2021

Americas
Vessel revenues	$	37,520		$	28,444		$	27,882		$	24,564		$	23,481

Vessel operating costs:
Crew costs		12,949			11,252			11,080			8,535			11,132
Repair and maintenance		2,866			2,627			2,487			2,951			2,192
Insurance		248			367			161			219			(30	)
Fuel, lube and supplies		2,326			2,385			2,019			2,028			1,952
Other		3,054			2,196			4,347			3,008			2,972
Total vessel operating costs		21,443			18,827			20,094			16,741			18,218

Vessel operating margin ($)		16,077			9,617			7,788			7,823			5,263
Vessel operating margin (%)		42.8	%		33.8	%		27.9	%		31.8	%		22.4	%

Americas - Select operating statistics
Average vessels - Total fleet		34			34			35			36			38
Utilization - Total fleet		73.0	%		60.7	%		59.9	%		54.5	%		51.0	%

Average vessels - Active fleet		29			27			26			25			25
Utilization - Active fleet		86.8	%		75.5	%		80.1	%		80.4	%		76.4	%

Average day rates	$	16,569		$	15,501		$	14,603		$	13,742		$	13,162

Vessels commencing drydocks		3			5			5			4			3


Deferred drydocking and survey costs - beginning balance	$	18,422		$	16,270		$	13,124		$	12,919		$	11,813
Cash paid for deferred drydocking and survey costs		3,857			5,060			6,470			4,906			2,157
Amortization of deferred drydocking and survey costs		(3,071	)		(2,908	)		(2,909	)		(2,936	)		(2,753	)
Disposals, intersegment transfers and other		—			—			(415	)		(1,765	)		1,702
Deferred drydocking and survey costs - ending balance	$	19,208		$	18,422		$	16,270		$	13,124		$	12,919

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

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2022			2022			2021			2021			2021

Asia Pacific
Vessel revenues	$	16,362		$	4,897		$	4,914		$	4,786		$	4,870

Vessel operating costs:
Crew costs		8,138			788			883			875			801
Repair and maintenance		945			284			342			552			268
Insurance		90			54			24			51			(10	)
Fuel, lube and supplies		1,590			105			166			211			205
Other		1,176			422			459			500			459
Total vessel operating costs		11,939			1,653			1,874			2,189			1,723

Vessel operating margin ($)		4,423			3,244			3,040			2,597			3,147
Vessel operating margin (%)		27.0	%		66.2	%		61.9	%		54.3	%		64.6	%

Asia Pacific - Select operating statistics
Average vessels - Total fleet		19			5			5			5			5
Utilization - Total fleet		67.9	%		99.2	%		100.0	%		96.1	%		100.0	%

Average vessels - Active fleet		18			5			5			5			5
Utilization - Active fleet		70.4	%		99.2	%		100.0	%		96.1	%		100.0	%

Average day rates	$	13,748		$	10,975		$	10,683		$	10,830		$	10,704

Vessels commencing drydocks		2			—			—			—			—


Deferred drydocking and survey costs - beginning balance	$	542		$	710		$	1,019		$	1,352		$	1,848
Cash paid for deferred drydocking and survey costs		1,262			—			—			—			23
Amortization of deferred drydocking and survey costs		(163	)		(168	)		(309	)		(379	)		(519	)
Disposals, intersegment transfers and other		(789	)		—			—			46			—
Deferred drydocking and survey costs - ending balance	$	852		$	542		$	710		$	1,019		$	1,352

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

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2022			2022			2021			2021			2021

Middle East
Vessel revenues	$	28,396		$	20,218		$	21,948		$	20,847		$	20,758

Vessel operating costs:
Crew costs		11,193			8,465			8,827			9,075			9,109
Repair and maintenance		3,429			2,124			2,804			2,392			2,364
Insurance		325			297			179			9			47
Fuel, lube and supplies		2,700			1,559			1,148			1,536			1,289
Other		2,249			2,457			2,708			2,834			2,233
Total vessel operating costs		19,896			14,902			15,666			15,846			15,042

Vessel operating margin ($)		8,500			5,316			6,282			5,001			5,716
Vessel operating margin (%)		29.9	%		26.3	%		28.6	%		24.0	%		27.5	%

Middle East - Select operating statistics
Average vessels - Total fleet		41			33			33			33			33
Utilization - Total fleet		80.8	%		82.9	%		88.0	%		83.4	%		83.4	%

Average vessels - Active fleet		41			33			32			32			32
Utilization - Active fleet		80.8	%		83.6	%		90.7	%		86.0	%		86.8	%

Average day rates	$	9,490		$	8,160		$	8,217		$	8,238		$	8,213

Vessels commencing drydocks		7			2			2			1			4


Deferred drydocking and survey costs - beginning balance	$	10,665		$	8,994		$	10,809		$	10,772		$	12,141
Cash paid for deferred drydocking and survey costs		6,362			3,855			327			2,441			1,331
Amortization of deferred drydocking and survey costs		(2,308	)		(2,184	)		(2,142	)		(2,290	)		(2,301	)
Disposals, intersegment transfers and other		261			—			—			(114	)		(399	)
Deferred drydocking and survey costs - ending balance	$	14,980		$	10,665		$	8,994		$	10,809		$	10,772

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

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2022			2022			2021			2021			2021

Europe/Mediterranean
Vessel revenues	$	32,475		$	23,919		$	22,501		$	21,197		$	22,467

Vessel operating costs:
Crew costs		12,349			12,003			11,235			10,541			10,519
Repair and maintenance		2,414			2,106			3,562			1,754			2,244
Insurance		307			309			38			208			(131	)
Fuel, lube and supplies		1,740			1,077			936			846			864
Other		2,468			2,026			1,919			1,926			1,803
Total vessel operating costs		19,278			17,521			17,690			15,275			15,299

Vessel operating margin ($)		13,197			6,398			4,811			5,922			7,168
Vessel operating margin (%)		40.6	%		26.7	%		21.4	%		27.9	%		31.9	%

Europe/Mediterranean - Select operating statistics
Average vessels - Total fleet		27			28			28			28			29
Utilization - Total fleet		82.8	%		77.8	%		72.4	%		68.3	%		64.7	%

Average vessels - Active fleet		25			24			23			21			21
Utilization - Active fleet		88.1	%		91.3	%		88.5	%		90.5	%		90.6	%

Average day rates	$	15,776		$	12,124		$	11,917		$	11,890		$	13,005

Vessels commencing drydocks		3			1			1			1			2


Deferred drydocking and survey costs - beginning balance	$	6,425		$	4,983		$	5,571		$	6,340		$	7,731
Cash paid for deferred drydocking and survey costs		4,206			2,575			93			892			162
Amortization of deferred drydocking and survey costs		(1,400	)		(1,133	)		(1,096	)		(1,316	)		(1,553	)
Disposals, intersegment transfers and other		—			—			415			(345	)		—
Deferred drydocking and survey costs - ending balance	$	9,231		$	6,425		$	4,983		$	5,571		$	6,340

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

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2022			2022			2021			2021			2021

West Africa
Vessel revenues	$	47,422		$	26,398		$	23,183		$	20,240		$	16,938

Vessel operating costs:
Crew costs		16,010			8,329			7,690			6,583			6,124
Repair and maintenance		3,823			2,320			2,307			2,848			2,466
Insurance		396			357			115			325			(13	)
Fuel, lube and supplies		3,165			1,950			2,136			2,130			2,231
Other		4,307			2,652			3,615			3,407			3,173
Total vessel operating costs		27,701			15,608			15,863			15,293			13,981

Vessel operating margin ($)		19,721			10,790			7,320			4,947			2,957
Vessel operating margin (%)		41.6	%		40.9	%		31.6	%		24.4	%		17.5	%

West Africa - Select operating statistics
Average vessels - Total fleet		67			52			52			55			57
Utilization - Total fleet		72.7	%		63.5	%		53.5	%		46.7	%		38.1	%

Average vessels - Active fleet		59			42			39			36			35
Utilization - Active fleet		82.9	%		79.1	%		71.4	%		71.3	%		61.8	%

Average day rates	$	10,721		$	8,834		$	9,052		$	8,562		$	8,521

Vessels commencing drydocks		5			3			3			3			2


Deferred drydocking and survey costs - beginning balance	$	8,308		$	9,777		$	9,987		$	8,989		$	13,115
Cash paid for deferred drydocking and survey costs		2,764			1,122			3,004			2,378			376
Amortization of deferred drydocking and survey costs		(2,210	)		(2,591	)		(3,214	)		(3,148	)		(3,199	)
Disposals, intersegment transfers and other		528			—			—			1,768			(1,303	)
Deferred drydocking and survey costs - ending balance	$	9,390		$	8,308		$	9,777		$	9,987		$	8,989

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

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2022			2022			2021			2021			2021

Worldwide
Vessel revenues	$	162,175		$	103,876		$	100,428		$	91,634		$	88,514

Vessel operating costs:
Crew costs		60,639			40,837			39,715			35,609			37,685
Repair and maintenance		13,477			9,461			11,502			10,497			9,534
Insurance		1,366			1,384			517			812			(137	)
Fuel, lube and supplies		11,521			7,076			6,405			6,751			6,541
Other		13,254			9,753			13,048			11,675			10,640
Total vessel operating costs		100,257			68,511			71,187			65,344			64,263

Vessel operating margin ($)		61,918			35,365			29,241			26,290			24,251
Vessel operating margin (%)		38.2	%		34.0	%		29.1	%		28.7	%		27.4	%

Worldwide - Select operating statistics
Average vessels - Total fleet		188			152			153			157			162
Utilization - Total fleet		75.5	%		70.9	%		67.4	%		61.7	%		57.0	%

Average vessels - Active fleet		172			131			125			119			118
Utilization - Active fleet		82.5	%		82.5	%		82.4	%		81.6	%		78.4	%

Average day rates	$	12,544		$	10,687		$	10,583		$	10,288		$	10,435

Vessels commencing drydocks		20			11			11			9			11


Deferred drydocking and survey costs - beginning balance	$	44,362		$	40,734		$	40,510		$	40,372		$	46,648
Cash paid for deferred drydocking and survey costs		18,451			12,612			9,894			10,617			4,049
Amortization of deferred drydocking and survey costs		(9,152	)		(8,984	)		(9,670	)		(10,069	)		(10,325	)
Disposals, intersegment transfers and other		—			—			—			(410	)		—
Deferred drydocking and survey costs - ending balance	$	53,661		$	44,362		$	40,734		$	40,510		$	40,372

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

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2022			2022			2021			2021			2021

Net loss	$	(25,014	)	$	(12,271	)	$	(38,079	)	$	(26,407	)	$	(29,647	)

Interest and other debt costs		4,284			4,175			3,417			3,681			3,944
Income tax (benefit) expense		6,619			5,218			(3,047	)		887			6,026
Depreciation		22,614			17,673			18,618			17,911			18,224
Amortization of deferred drydock and survey costs		9,152			8,984			9,670			10,069			10,325
EBITDA (A), (B), (C)		17,655			23,779			(9,421	)		6,141			8,872

Long-lived asset impairment (credit) and other		—			(500	)		13,476			2,167			—
Affiliate credit loss impairment expense (credit)		—			—			1,400			—			(1,000	)
Loss on early extinguishment of debt		—			—			11,100			—			—
Loss on warrants		14,175			—			—			—			—
Gain on bargain purchase		—			(1,300	)		—			—			—
One-time integration related costs		7,314			2,305			221			112			795
Adjusted EBITDA (A), (B), (C)	$	39,144		$	24,284		$	16,776		$	8,420		$	8,667

Note (A): EBITDA excludes interest and other debt costs, income tax expense, depreciation and amortization. Additionally, Adjusted EBITDA excludes impairment charges, loss on early extinguishment of debt, loss on warrants, gain on bargain purchase and merger and integration related costs.

Note (B): EBITDA and Adjusted EBITDA for the three months ended June 30, 2022, and for each of the prior four quarters includes non-cash, stock-based compensation expense of $1,963, $1,458, $1,439, $1,523, and $1,504, respectively.

Note (C): EBITDA and Adjusted EBITDA for the three months ended June 30, 2022, and for each of the prior four quarters includes foreign exchange gain (losses) of $(1,881), $946, $582, $(523), and $422, 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 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
	June 30,			March 31,			December 31,			September 30,			June 30,
	2022			2022			2021			2021			2021

Net cash provided by (used in) operating activities (A)	$	(21,603	)	$	(11,624	)	$	6,938		$	(2,499	)	$	4,851

Cash interest expense		7,626			—			3,664			3,055			3,282
Interest income and other		(349	)		(2,186	)		(1,426	)		(148	)		(8	)
Additions to property and equipment		(4,151	)		(1,229	)		(6,368	)		(722	)		(665	)
Acquisitions		(28,486	)		(1,039	)		—			—			—
Expansion capital		28,486			1,039			—			—			—
Free cash flow before proceeds from asset sales		(18,477	)		(15,039	)		2,808			(314	)		7,460

Proceeds from asset sales		3,535			4,628			54			4,396			18,577

Free cash flow	$	(14,942	)	$	(10,411	)	$	2,862		$	4,082		$	26,037

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 (used in) operating activities adjusted for capital expenditures, excluding expansion capital, proceeds from asset sales, cash interest expense and interest income. 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 (used in) 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
	June 30,			March 31,			December 31,			September 30,			June 30,
	2022			2022			2021			2021			2021
Cash provided by (used in) changes in assets and liabilities, excluding drydock payments	$	(27,697	)	$	(13,401	)	$	265		$	2,586		$	7,066
Cash paid for deferred drydock and survey costs		(18,451	)		(12,612	)		(9,894	)		(10,617	)		(4,049	)
Total sources (uses) of cash for changes in assets and liabilities	$	(46,148	)	$	(26,013	)	$	(9,629	)	$	(8,031	)	$	3,017

View source version on businesswire.com: https://www.businesswire.com/news/home/20220729005448/en/

Contacts

Tidewater Inc.

West Gotcher

Vice President,

Finance and Investor Relations

+1.713.470.5285

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Tidewater Reports Results for the Three and Six Months Ended June 30, 2022

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