Hornbeck Offshore Services, Inc. (NYSE:HOS) Q4 2015 Earnings Conference Call - Final Transcript

Feb 18, 2016 • 10:00 am ET


Hornbeck Offshore Services, Inc. (NYSE:HOS) Q4 2015 Earnings Conference Call - Final Transcript


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Greetings and Welcome to the Hornbeck Offshore Services Fourth Quarter Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Mr. Ken Dennard. Thank you Mr. Dennard, you may begin.

Kenneth Dennard

Thanks, Matt. Good morning, everyone. We appreciate you joining us for Hornbeck Offshore's conference call to review fourth quarter 2015 results and recent developments. We also welcome our Internet participants listening to the call over the web. Please note that information reported on this call speaks only as of today, February 18, 2016, and therefore you're advised that time-sensitive information may no longer be accurate as of the time of any replay listening or transcript reading.

During today's conference call, Todd and Jim will make certain projections about future financial performance, liquidity, operations and events that are not statements of historical fact and thus constitute forward-looking statements. These forward-looking statements are subject to risks, uncertainties and other factors that may cause such future matters including the company's actual future performance to be materially different from that which is projected today.

You can locate additional information about factors that could cause the company's results to materially differ from those projected in the forward-looking statements in the Hornbeck's SEC filings and in yesterday's press release under the Investor section in the company's website, which is www.hornbeckoffshore.com or through the SEC website at www.sec.gov.

This earnings call also contains references to EBITDA and adjusted EBITDA, which are non-GAAP financial measures. A reconciliation of these financial measures to the most directly comparable GAAP financial measure is provided in the press release issued by the company yesterday afternoon. And finally, the company uses its website as a means of disclosing material non-public information and for complying with disclosure obligations under SEC's Regulation FD, such disclosures will be included on the company's website under the heading Investors. Accordingly, investors should monitor that portion of the company's website in addition to following the company's press releases, SEC filings, public conference calls and webcasts.

And now, with that behind us, I'd like to turn the call over to Todd Hornbeck, Chairman, President and CEO of Hornbeck Offshore. Todd?

Todd M. Hornbeck

Thank you, Ken. Good morning and welcome to the Hornbeck Offshore fourth quarter 2015 conference call. With me today is Mr. Jim Harp, our Chief Financial Officer. After my brief comments, Jim will take you through the numbers in more detail. Yesterday afternoon, we announced our fourth quarter and full year 2015 results. The fourth quarter net loss reflected a continuation of the severe market slowdown that we have experienced along with the rest of the oil service industry on account of the collapse in oil prices that has persisted for about 15 months now.

There's no way to sugarcoat this. We are in an extremely difficult period in our industry. For our company, the combined effect of depressed drilling activity by