Tidewater Inc. · NYSE:TDW
Tidewater — Shareholder Meeting (July 2010)
31 slides from Tidewater's shareholder meeting presentation, Jul 28, 2010
Slide 1: Fiscal 2010 Annual Shareholders Meeting
FISCAL 2010 ANNUAL SHAREHOLDERS MEETING July 22, 2010 Jeffrey M. Platt Dean E. Taylor Quinn P. Fanning Exhibit 99.1 FISCAL 2010 ANNUAL SHAREHOLDERS MEETING July 22, 2010 Jeffrey M. Platt Chief Operations Officer Chief Operations Officer Dean E. Taylor Chairman, President and Chairman, President and
Slide 2: M/V Damon B. Bankston
M/V DAMON B. BANKSTON M/V DAMON B. BANKSTON
Slide 3: Media Coverage of Heroic Efforts
“Terror, daring rescue in Gulf of Mexico oil rig explosion recounted” May 7, 2010 “Sea captain tells of rig blast in gritty detail” May 11, 2010 “Horizon hero hits the U.S.” May 21, 2010 “Boom” July 2010 “U.S. rig witness recalls rain of mud, green flash” May 11, 2010 “In the Gulf of Mexico, what we
Slide 4: The Crew of the Damon B. Bankston
THE CREW OF THE DAMON B. BANKSTON THE CREW OF THE DAMON B. BANKSTON
Slide 5: Chairman's Award
CHAIRMAN’S AWARD CHAIRMAN’S AWARD
Slide 6: "Chairman's Award" Plaque
“CHAIRMAN’S AWARD” PLAQUE “CHAIRMAN’S AWARD” PLAQUE
Slide 7: Operations Review
OPERATIONS REVIEW Jeff Platt – Chief Operations Officer OPERATIONS REVIEW Jeff Platt – Chief Operations Officer
Slide 8: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Phone: 504.568.1010 Fax: 504.566.4580 Web: www.tdw.com Email: connect@tdw.com 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
Slide 9: Safety – A Top Priority
SAFETY – A TOP PRIORITY SM SAFETY – A TOP PRIORITY
Slide 10: Safety Record Rivals Leading Companies
0.00 0.25 0.50 0.75 1.00 Total Recordable Incident Rates Calendar Years 2002 2003 2004 2005 2006 2007 2008 2009 TIDEWATER DUPONT DOW CHEMICAL EXXON MOBIL SAFETY RECORD RIVALS LEADING COMPANIES SAFETY RECORD RIVALS LEADING COMPANIES
Slide 11: Zero Lost Time Accidents in Fiscal 2010
August 12, 2008 Over 700 days worked since Over 70,000,000 man hours worked since First Time in Tidewater History ZERO LOST TIME ACCIDENTS IN FISCAL 2010 ZERO LOST TIME ACCIDENTS IN FISCAL 2010
Slide 12: Tidewater
TIDEWATER
Slide 13: 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 INTERNATIONAL STRENGTH • • • • INTERNATIONAL STRENGTH
Slide 14: Quality of Customer Base
NOC's 24% Others 35% Super Majors 41% Our top 10 customers in Fiscal 2010 (6 Super Majors, 3 NOC’s and one large independent) accounted for 63% of our revenue CURRENT REVENUE MIX Quality of Customer Base CURRENT REVENUE MIX Quality of Customer Base
Slide 15: Vessel Population by Owner
5 60 63 71 107 108 276 0 100 200 300 400 500 Source: ODS-Petrodata and Tidewater Tidewater Competitor #2 Competitor #3 Competitor #4 Competitor # 5 Competitor #1 Avg. All Others (1,752 total vessels for 300+ owners) VESSEL POPULATION BY OWNER (includes AHTS’s and PSV’s only) Estimated as of 3/31/10
Slide 16: The Largest Modern Fleet in the Industry
Vessel Count Estimated Cost AHTS 80 $1,426m PSV’s 74 $1,449m Crewboats & Tugs 67 $289m TOTALS: 221 $3,164m At 3/31/10, 170 new vessels in fleet with ~5 year average age Vessel Commitments Jan. ’00 – March ‘10 THE LARGEST MODERN FLEET IN THE INDUSTRY . . . . 28 vessels delivered during Fiscal 2010 TH
Slide 17: ...And Our Lead Is Growing
Count AHTS 18 PSV 16 Crew and Tug 2 Total 36 Vessels Under Construction* As of March 31, 2010 * Includes five new vessels committed to purchase as of 3/31/10 …. AND OUR LEAD IS GROWING 21 of these vessels are expected to be delivered during Fiscal 2011 …. AND OUR LEAD IS GROWING
Slide 18: Financial Review
FINANCIAL REVIEW Quinn Fanning – EVP & CFO FINANCIAL REVIEW Quinn Fanning – EVP & CFO
Slide 19: A View From the Bridge
Positive longer-term fundamentals Global economy stabilizing; however, recovery may be slow and choppy Credit markets healthier, despite European debt crisis Commodity prices support higher E&P spending (up ~12% in 2010 1 ) Offshore rig count recovering (ex-US GoM) Market conditions require continue
Slide 20: A View From the Bridge (cont.)
History of earnings growth and solid, through-cycle returns Well positioned to optimize expected market recovery World’s largest new fleet Global operating footprint High quality customer base Strong financial profile A VIEW FROM THE BRIDGE (cont.) • • • A VIEW FROM THE BRIDGE (cont.)
Slide 21: Selected Financial Highlights
Year Ended 3/31/10 3/31/09 Revenues $1,169 $1,391 Adjusted Net Earnings* $279 $407 Adjusted EPS* $5.41 $7.89 Net Cash from Operations $328 $526 Capital Expenditures $452 $474 * Adjusted Net Earnings and Adjusted EPS for the year ended 3/31/10 excludes $44.6 million, or $0.87 per share, related to pr
Slide 22: Strong Financial Profile; Significant Available Liquidity
March 2010 March 2009 Cash $223 $251 Stockholders’ Equity $2,464 $2,245 Long-term Debt $275 $300 Net Debt to Total Cap 2.1% 2.1% ($ in Millions) ~ $675 million of Available Liquidity at 3/31/10 (Cash plus $450m Revolver) STRONG FINANCIAL PROFILE; SIGNIFICANT AVAILABLE LIQUIDITY STRONG FINANCIAL PROF
Slide 23: Vessel Revenue and Gross Margins
VESSEL REVENUE AND GROSS MARGINS 5-year average Revenue: $1,131 million 5-year average Gross Margin: 51% 5-year CAGR in New vessel revenue: ~29% VESSEL REVENUE AND GROSS MARGINS
Slide 24: Significant Earnings Growth
32% Six-Year Compounded Annual Earnings Growth Rate ** EPS in Fiscal 2004 is exclusive of the $.30 per share after tax impairment charge. EPS in Fiscal 2006 is exclusive of the $.74 per share after tax gain from the sale of six KMAR vessels. EPS in Fiscal 2007 is exclusive of $.37 per share of after
Slide 25: Primary Uses of Cash
Over an 11-year period, Tidewater invested $3.2 billion in CAPX ($2.8 billion in the “new” fleet), and paid out $923 million through dividends and share repurchases. Over the same period, CFFO and proceeds from dispositions were $3.1 billion and $640 million, respectively PRIMARY USES OF CASH PRIMAR
Slide 26: Returns vs the Market: Five Year Stockholder Return
-50% 0% 50% 100% 150% 200% Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 TDW DJIA S&P500 OSX RETURNS vs the MARKET FIVE YEAR STOCKHOLDER RETURN OSX 52% S&P 500 9% DJIA 16% TDW 36% RETURNS vs the MARKET FIVE YEAR STOCKHOLDER RETURN
Slide 27: Capitalization of Key OSV Companies
Balance Sheet data as of March 31, 2010, except GBB (12/31/09) Net Debt = ST + LT Debt, Less Cash Equity = Share price (in USD) at 3/31 times shares outstanding at 3/31, except GBB (12/31) USD/EUR = 1.263; USD/NOK = 0.156 Capitalization (Market) Net Debt / Net Book Capital CAPITALIZATION OF KEY OSV
Slide 28: Relative Valuations
Enterprise Value / EBITDA Price / Earnings Source: FBR Capital Markets Corporation Maritime Comparable Company Analysis June 28, 2010 RELATIVE VALUATIONS RELATIVE VALUATIONS Dividend Yield 2.5% 2.6% 2.6% -- -- --
Slide 29: Stock Ownership by Investment Style
Source: Thomson Reuters As of June 28, 2010 STOCK OWNERSHIP BY INVESTMENT STYLE GARP 17% Index 17% Growth 13% Income 8% Specialty 1% Value 43% ~71% of non-index investors focused on long-term value creation STOCK OWNERSHIP BY INVESTMENT STYLE
Slide 30: Financial Strategy Focused on Creating Long-Term Shareholder Value
Maintain Financial Strength EVA-Based Investments On Through-cycle Basis Deliver Results FINANCIAL STRATEGY FOCUSED ON CREATING LONG-TERM SHAREHOLDER VALUE FINANCIAL STRATEGY FOCUSED ON CREATING LONG-TERM SHAREHOLDER VALUE
Slide 31: Fiscal 2010 Annual Shareholders Meeting
FISCAL 2010 ANNUAL SHAREHOLDERS MEETING July 22, 2010 Jeffrey M. Platt Dean E. Taylor Quinn P. Fanning FISCAL 2010 ANNUAL SHAREHOLDERS MEETING July 22, 2010 Jeffrey M. Platt Chief Operations Officer Chief Operations Officer Dean E. Taylor Chairman, President and Chairman, President and Chief Executi