Helix Energy Solutions Group, Inc. (NYSE:HLX) Q4 2019 Earnings Conference Call - Final Transcript

Feb 25, 2020 • 10:00 am ET

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Helix Energy Solutions Group, Inc. (NYSE:HLX) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings and welcome to the Fourth Quarter 2019 Earnings Conference Call. During today's presentation, all participant lines will remain in a listen-only mode. Afterwards, we will conduct a question-and-answer session with instructions to follow. [Operator Instructions] Please note, this conference is being recorded Tuesday, February 25th, 2020. It is now with pleasure that I turn today's conference over to Mr Erik Staffeldt, CFO. Please go ahead, sir.

Executive
Erik Staffeldt

Good morning everyone and thanks for joining us today on our conference call for our fourth quarter and full year 2019 earnings release. Participating on the call this morning are Owen Kratz, our CEO; Scotty Sparks, our COO; Ken Neikirk, our General Counsel and myself. Hopefully, you've had an opportunity to review our press release and the related slide presentation released last night. If you do not have a copy of these materials, both can be accessed through the Investors page on our website at www.helixesg.com. The press release can be accessed under the Press Releases tab and the slide presentation can be accessed by clicking on today's webcast icon. Before we begin our prepared remarks, Ken Neikirk will make a statement regarding forward-looking information. Ken?

Executive
Ken Neikirk

During this conference call, we anticipate making certain projections and forward-looking statements based on our current expectations. All statements in this conference call or in the associated presentation, other than statements of historical fact, are forward-looking statements and are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Our actual future results may differ materially from our projections and forward-looking statements due to a number and variety of factors including those set forth in Slide 2 in our most recently filed Annual Report on Form 10-K and in our other filings with the SEC. Also during this call, certain non-GAAP financial disclosures may be made. In accordance with SEC rules, the final slide of our presentation provides reconciliation of certain non-GAAP measures to comparable GAAP financial measures. These reconciliations along with this presentation, the earnings press release, our annual report, and a replay of this broadcast are available under the FOR THE INVESTOR section of our website at www.helixesg.com. Owen?

Executive
Owen Kratz

Good morning everyone. We're going to start on Slide 5 through eight today, which provide a high level summary of our results. The fourth quarter marked the start of the seasonal slowdown of activity in the North Sea affecting both our well intervention and robotics segments. The slowdown typically starts in November and runs into April. The seasonality can be seen in our results as revenues in Q4 were $171 million, down from $213 million in Q3. The decline in revenue decreased our gross profit to $27 million or 16% compared to $55 million or 26% in Q3. For the quarter, we recorded a net income of $8 million compared to net income of $32 million in Q3. The reduction in revenue resulted in lower EBITDA of $33 million in Q4 compared to $66 million in Q3. Considering the seasonal slowdown, our