Tidewater Inc. · NYSE:TDW
Tidewater — Shareholder Meeting (July 2011)
23 slides from Tidewater's shareholder meeting presentation, Jul 14, 2011
Slide 1: Fiscal 2011 Annual Shareholders' Meeting
FISCAL 2011 ANNUAL SHAREHOLDERS’ MEETING DEAN E. TAYLOR JEFFREY M. PLATT QUINN P. FANNING Chairman, President and CEO Chief Operating Officer Executive VP and CFO July 14, 2011
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company notes that certain statements set forth in this presentation provide other than historical information and are forward looking. The actual achievement of any
Slide 3: Operations Review
OPERATIONS REVIEW Jeff Platt – Chief Operating Officer 3
Slide 4: Safety – A Continued Top Priority
SAFETY – A CONTINUED TOP PRIORITY SM 4
Slide 5: Safety Record Rivals Leading Companies
SAFETY RECORD RIVALS LEADING COMPANIES TOTAL RECORDABLE INCIDENT RATES 0.80 0.70 TIDEWATER 0.60 0.50 DOW CHEMICAL 0.40 0.30 CHEVRON 0.20 EXXON/MOBIL 0.10 0.00 2002 2003 2004 2005 2006 2007 2008 2009 2010 CALENDAR YEARS 5
Slide 6: International Strength
INTERNATIONAL STRENGTH Unique global footprint; 50+ years of Int’l experience Unmatched scale and scope of operations International market opportunities • Growth • Longer contracts • Better utilization • Higher dayrates Solid customer base of NOC’s and IOC’s 6
Slide 7: Our Global Footprint
OUR GLOBAL FOOTPRINT Vessel Distribution by Region (excludes stacked vessels – as of 3/31/11) Europe / M.E. 40 (14%) North America 16 (6%) Far East 35 (13%) West Africa 129 (47%) Central/South America 54 (20%) International / U.S. 2011: 94% / 6% 2000: 62% / 38% 7
Slide 8: The Largest Modern Fleet in the Industry
THE LARGEST MODERN FLEET IN THE INDUSTRY…. Vessel Commitments Jan. ’00 – March ‘11 Vessel Count Estimated Cost AHTS 99 $1,743m PSV’s 84 $1,755m Crewboats & Tugs 67 $289m TOTALS: 250 $3,787m(1) . 29 additional vessels were delivered into our fleet in Fiscal 2011 At 3/31/11, 193 new vessels in fleet w
Slide 9: ...And More to Come
…. AND MORE TO COME Vessels Under Construction* As of March 31, 2011 Count AHTS 15 PSV 20 Crew and Tug 1 Total 36 Estimated delivery schedule – 25 in FY ‘12, 10 in FY ‘13 and 1 thereafter. CAPX of $368m in FY ‘12, $110m in FY ‘13 and $16m in FY ’14. * Includes eight new vessels committed to purchase
Slide 10: Fiscal 2011 New Vessel Commitments
FISCAL 2011 NEW VESSEL COMMITMENTS 29 new vessel commitments in Fiscal 2011 with total capital cost of ~$600 million 12 1 PSV 6 AHTS 9 AHTS 10 3 PSV’s 4 PSV’s 4 AHTS # of vessels 8 $179M $177M $139M 6 4 2 PSV’s 2 $101M 0 6/30/10 Qtr 9/30/10 Qtr 12/31/10 Qtr 3/31/11 Qtr Since 3/31/11, commitments for
Slide 11: Financial Review
FINANCIAL REVIEW Quinn Fanning – Chief Financial Officer 11
Slide 12: History of Earnings Growth and Solid Through-Cycle Returns
HISTORY OF EARNINGS GROWTH AND SOLID THROUGH-CYCLE RETURNS Adjusted EPS** $7.89 $8.00 $6.39 $5.94 $5.20 Adjusted EPS ** $6.00 $3.33 $4.00 $1.78 $2.40 $2.00 $1.03 $0.00 Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal 2004 2005 2006 2007 2008 2009 2010 2011 Adjusted Return On Avg. Equity 4.3%
Slide 13: Fleet Renewal & Expansion Funded by Operating Cash Flow
FLEET RENEWAL & EXPANSION FUNDED BY OPERATING CASH FLOW THROUGH FISCAL 2011 CAPX Dividend Share Repurchase $ in millions $700 $600 $500 CFFO $400 $300 $200 $100 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Fiscal Year Over a 12-year period, Tidewater invested $3.8 billion in CAPX (
Slide 14: Recent Financial Results Reflect Cyclical Downturn
RECENT FINANCIAL RESULTS REFLECT CYCLICAL DOWNTURN Years Ended $ in Millions, Except Per Share Data 3/31/11 3/31/10 Revenues $1,055 $1,169 Adjusted Net Earnings* $123 $269 Adjusted EPS* $2.40 $5.20 Net Cash from Operations $264 $328 Capital Expenditures $615 $452 * Adjusted Net Earnings and Adjusted
Slide 15: Strong Financial Position Provides Strategic Optionality
STRONG FINANCIAL POSITION PROVIDES STRATEGIC OPTIONALITY At March 31, 2011 Cash & Cash Equivalents $246 million Total Debt $700 million Shareholders Equity $2,514 million Net Debt / Net Capitalization 15% Total Debt / Capitalization 22% Pro forma liquidity as of 3/31/11 of +$800 million, including $
Slide 16: Recent Financings Will Fund Growth at Attractive Relative Cost
RECENT FINANCINGS WILL FUND GROWTH AT ATTRACTIVE RELATIVE COST Private Placement Financing: Senior Unsecured Notes $425 million Average Life to Maturity ~ 9 years Weighted Average Coupon 4.25% New Credit Facilities: Term Loan $125 million Revolving Line of Credit $450 million Term Five years LIBOR p
Slide 17: Returns vs the Market: Five Year Stockholder Return
RETURNS vs the MARKET FIVE YEAR STOCKHOLDER RETURN 80.0% 60.0% OSX 42% 40.0% DJIA 27% 20.0% TDW 18% S&P 500 14% 0.0% -20.0% -40.0% -60.0% TDW DJIA S&P 500 OSX 17
Slide 18: Where Could Fiscal 2014 Find Us?
WHERE COULD FISCAL 2014 FIND US? Potential for Earnings Acceleration ~$730M+ This info is not meant to be a EBITDA prediction of future earnings performance, but simply an indication of earning sensitivities 90.0% ~$9.10 resulting from future fleet Avg. Utilization additions and reductions and ~$520
Slide 19: Retirement of Stephen Wallace Dick
RETIREMENT OF STEPHEN WALLACE DICK 19
Slide 20: Thanks for All You've Done for Tidewater
THANKS FOR ALL YOU’VE DONE FOR TIDEWATER OVER 38 YEARS 20
Slide 21: 2011 Tidewater Chairman's Award Objectives
2011 TIDEWATER CHAIRMAN’S AWARD OBJECTIVES To recognize an individual or team that has: Performed heroic acts in time of crisis Significantly impacted the TDW business Significantly contributed to our customer success or relationships Had a breakthrough idea or contribution resulting in sign
Slide 22: 2011 Tidewater Chairman's Award
2011 TIDEWATER CHAIRMAN’S AWARD 22
Slide 23: Fiscal 2011 Annual Shareholders' Meeting
FISCAL 2011 ANNUAL SHAREHOLDERS’ MEETING DEAN E. TAYLOR JEFFREY M. PLATT QUINN P. FANNING Chairman, President and CEO Chief Operating Officer Executive VP and CFO July 14, 2011