Tidewater Inc. (NYSE:TDW) Q2 2019 Earnings Conference Call - Final Transcript

Aug 13, 2019 • 11:00 am ET


Tidewater Inc. (NYSE:TDW) Q2 2019 Earnings Conference Call - Final Transcript


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Welcome to the Earnings Conference Call Second Quarter 2019. My name is Adriane and I'll be your operator for today's call. [Operator Instructions] Please note this conference call is being recorded.

I'll now turn the call to Matt Mancheski. Matt Mancheski, you may begin.

Matthew A. Mancheski

Thank you, Adriane. Good morning, everyone, and welcome to Tidewater's earnings conference call for the period ended June 30th, 2019. I'm Matt Mancheski, Tidewater's Vice President of Investor Relations & Corporate Development. I'd like to thank you for your time and interest in Tidewater. With me this morning on the call are our President and CEO, John Rynd; Quintin Kneen, Our Chief Financial Officer; Jeff Gorski, our Chief Operating Officer; and Bruce Lundstrom, our General Counsel.

For today's call agenda, I'll cover a few formalities and then turn the call over to John for his prepared remarks, followed by Quentin's review of our financial results for the period. Following John's closing comments, we will then open up the call for questions.

During today's conference call, we may make certain comments that are forward-looking and not statements of historical fact. These are -- there are risks and uncertainties and other factors that may cause the Company's actual future performance to be materially different from that stated or implied by any comment that we make during today's conference call. Please refer to our most recent Form 10-Q for additional details on these risk factors. This document is available on our website or through the SEC at sec.gov.

Information presented on this call speaks only as of today, August 13th, 2019, and therefore, you are advised that any time-sensitive information may no longer be accurate at the time of any replay. Also during the call, we will present both GAAP and non-GAAP financial measures. The reconciliation of GAAP to non-GAAP measures is included in our last evening's press release.

With that, I'll turn the call over John. John?

John T. Rynd

Good morning, everyone, and welcome to the Tidewater earnings call. The second quarter was a testament to the strategic rationale of the Gulfmark combination completed towards the end of last year, as demonstrated by the margin growth of the combined company. The North Sea market and deepwater vessels more broadly, both segments that were enhanced through the acquisition, should continue strengthening during the quarter.

In addition, the increased scale allowed for good cost control both on and offshore, resulting in margin expansion relative to both prior quarter and the same time last year. While the seasonal North Sea market strengthened earlier than anticipated, and have since moderated to more normalized levels for this time of the year, we believe the continued trend of activity levels, which impacts rates and utilization, are moving in the right direction, albeit at a pace that is slower than desired.

Revenue was up slightly over the prior quarter due to average debt rate increase of $636 per day, and active utilization falling about 1.3 percentage points. This is the second consecutive quarter where worldwide average day rates