Tidewater Reports Results for the Three and Six Months Ended June 30, 2023

August 07, 2023 at 16:19 PM EDT

Second Quarter 2023 Highlights

Revenue of $215.0 million, an 11.3% increase from the first quarter of 2023
Average day rate increased to $16,042 per day, $1,418 higher than the first quarter of 2023
Net income of $22.6 million, an increase of nearly $12.0 million from the first quarter of 2023
Adjusted EBITDA of $72.0 million, an increase of $12.9 million from the first quarter of 2023
Composite Q2 2023 leading-edge term contract day rate up 10.9% to $23,498
Completed Solstad acquisition on July 5, 2023; 5 vessels fully integrated, full-fleet integration by Q4 2023
Received $111.5 million of cash from the exercise of 1.9 million Series A and Series B warrants in August 2023

Tidewater Inc. (NYSE:TDW) announced today revenue for the three and six months ended June 30, 2023 of $215.0 million and $408.1 million, respectively, compared with $163.4 million and $269.2 million, respectively, for the three and six months ended June 30, 2022. Tidewater's net income for the three and six months ended June 30, 2023, was $22.6 million ($0.43 per common share) and $33.3 million ($0.64 per common share), respectively, compared with net losses of $25.6 million ($0.61 per common share) and $37.7 million ($0.91 per common share), respectively, for the three and six months ended June 30, 2022. Included in the net income for the three and six months ended June 30, 2023 were merger and severance expenses of $1.2 and $2.7 million, respectively. Excluding these items, we would have reported net income for the three and six months ended June 30, 2023 of $23.8 million ($0.46 per common share) and $36.0 million ($0.69 per common share), respectively. Included in the net losses for the three and six months ended June 30, 2022 were merger and severance expenses of $7.3 and $9.6 million, respectively; and loss on warrants of $14.2 million for both periods. Included in the net losses for the six months ended June 30, 2022 were long-lived asset impairment credit and gain on bargain purchase of $1.8 million. Excluding these items, we would have reported net losses for the three and six months ended June 30, 2022 of $4.1 million ($0.10 per common share) and $15.7 million ($0.38 per common share), respectively.

Quintin Kneen, Tidewater’s President and Chief Executive Officer, commented, “The second quarter continued the trend of new quarterly cyclical revenue and global average day rate high-water marks. Consolidated global average day rates improved approximately $1,400 per day sequentially, approaching a $5,500 per day increase since the end of 2021. The pace of our day rate improvement picked up from the prior quarter as commercial and tendering activity remained robust and an improvement in seasonal factors helped drive shorter term day rate realization. The momentum in day rates is being driven by a global supply shortage of large and small offshore vessels, and as a result each of our five segments realized meaningful day rate expansions during the second quarter. Expected long-term increases in offshore capital spending, the increasingly constructive tone of conversations with our customers in terms of vessel contract duration and future start dates for projects, coupled with the existing and expected future constraints in vessel supply, point to as compelling of a long-term market backdrop for our business as we have ever seen.

“We are excited about the addition of the high-quality, high-specification fleet of PSVs we acquired from Solstad Offshore and have already successfully integrated five of these vessels into the Tidewater vessel operational infrastructure. Driven largely by the completion of the Solstad Offshore vessel acquisition, revenue for the third quarter should be up at least $80.0 million. We updated our view of the combined fleets and of the market for the remainder of the year and we reiterate our 2023 annual guidance of approximately $1.03 billion of revenue and approximately $500.0 million of vessel operating margin.

“Revenue for the quarter totaled $215.0 million, an increase of $21.9 million, or 11.3% sequentially. Gross margin improved materially during the quarter, driven by day rate increases across the fleet. Vessel gross margin expanded over four percentage points to 43.8%, a rate of improvement we anticipate continuing for the remainder of the year. Utilization declined modestly to 79.4% from 80.6% in the prior quarter. Utilization was down modestly during the second quarter as we withheld capacity and repositioned the fleet to maximize long-term day rates on a global basis, which resulted in more days of frictional unemployment as we targeted higher margin geographies for our vessels. The opportunity cost of this strategy to maximize day rates was approximately $8.0 million in the second quarter. Drydock days were up approximately 17.0% sequentially, but drydock expense was down 31.8% to $21.4 million in the second quarter, bringing the total year-to-date drydock spend to $52.7 million. With the additional 37 PSVs we acquired from Solstad Offshore in early July, we now expect to incur approximately $87.0 million in drydock expense for the full year of 2023, up from the approximately $77.0 million we previously anticipated for the Tidewater fleet.

“Turning to our regional operating results, the North Sea experienced a significant improvement in revenue as seasonal factors abated, with day rates up approximately $3,400, or 23.0%, pushing up vessel cash margin by over nine percentage points to 45.8%. West Africa continued to see momentum during the quarter with day rates up approximately $1,400 per day, or 11.0%, and vessel cash margin expanding by over seven percentage points to 53.6%. Interestingly, day rates in the Middle East were up approximately $770 per day, or 8.0%; this movement is particularly notable as the Middle East is a market which typically does not see large day rate movements. Day rate expansion in the Americas and Asia Pacific were up approximately 2.0% and 3.0%, respectively, sequentially following a period of robust day rate expansion in the first quarter driven by a meaningful number of new contracts. Additionally, in the Americas region during the second quarter we reserved approximately $4.0 million related to a special purpose customer receivable balance that we determined to be uncollectible.

“The material improvement in day rates, revenue, and operating margin is possible due to the enormous efforts of our dedicated and high performing employees. We are excited to welcome our new employees from Solstad Offshore and remain committed to providing a safe and rewarding environment for our employees as we move forward together building the safest, most sustainable, most reliable, most profitable, high specification offshore energy support vessel fleet in the world.”

In addition to the number of outstanding shares, as of June 30, 2023, the company also has the following in-the-money warrants.

Common shares outstanding			50,895,235
New Creditor Warrants (strike price $0.001 per common share)			81,244
GulfMark Creditor Warrants (strike price $0.01 per common share)			100,179
Total			51,076,658

Tidewater will hold a conference call to discuss results for the three months ending June 30, 2023 on August 8, 2023, at 8:00 a.m. Central Time. Investors and interested parties may listen to the earnings conference call via telephone by calling +1.888.770.7135 if calling from the U.S. or Canada (+1.929.203.0820 if calling from outside the U.S.) and provide Conference ID: 2444624 prior to the scheduled start time. A live webcast of the call will also be available in the Investor Relations section of Tidewater’s website at investor.tdw.com.

A replay of the conference call will be available beginning at 11:00 a.m. Central Time on August 8, 2023 and will continue until 11:59 p.m. Central Time on September 8, 2023. To access the replay, visit the Investor Relations section of Tidewater’s website at investor.tdw.com.

About Tidewater

Tidewater owns and operates the largest fleet of offshore support vessels in the industry, with 65 years of experience supporting offshore energy exploration, production and offshore wind activities worldwide. To learn more, visit www.tdw.com.

Cautionary Statement

This news release contains “forward-looking statements” within the meaning of the U.S. federal securities laws – that is, any statements that are not historical facts. Such statements often contain words such as “expect,” “believe,” “think,” “anticipate,” “predict,” “plan,” “assume,” “estimate,” “forecast,” “target,” “projections,” “intend,” “should,” “will,” “shall” and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain and based on our management’s current expectations and beliefs concerning future developments and their potential impact on Tidewater Inc. and its subsidiaries (the “Company”).

These forward-looking statements involve risks and uncertainties that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including, among others: fluctuations in worldwide energy demand and oil and gas prices; fleet additions by competitors and industry overcapacity; limited capital resources available to replenish our asset base as needed, including through acquisitions or vessel construction, and to fund our capital expenditure needs; uncertainty of global financial market conditions and potential constraints in accessing capital or credit if and when needed with favorable terms, if at all; changes in decisions and capital spending by customers based on industry expectations for offshore exploration, field development and production; consolidation of our customer base; loss of a major customer; changing customer demands for vessel specifications, which may make some of our older vessels technologically obsolete for certain customer projects or in certain markets; rapid technological changes; delays and other problems associated with vessel maintenance; the continued availability of qualified personnel and our ability to attract and retain them; the operating risks normally incident to our lines of business, including the potential impact of liquidated counterparties; our ability to comply with covenants in our indentures and other debt instruments; acts of terrorism and piracy; the impact of regional or global public health crises or pandemics; the impact of potential information technology, cybersecurity or data security breaches; integration of acquired businesses and entry into new lines of business; disagreements with our joint venture partners; natural disasters or significant weather conditions; unsettled political conditions, war, civil unrest and governmental actions, such as expropriation or enforcement of customs or other laws that are not well developed or consistently enforced; risks associated with our international operations, including local content, local currency or similar requirements especially in higher political risk countries where we operate; interest rate and foreign currency fluctuations; labor changes proposed by international conventions; increased regulatory burdens and oversight; changes in laws governing the taxation of foreign source income; retention of skilled workers; enforcement of laws related to the environment, labor and foreign corrupt practices; increased global concern, regulation and scrutiny regarding climate change; increased stockholder activism; the potential liability for remedial actions or assessments under existing or future environmental regulations or litigation; the effects of asserted and unasserted claims and the extent of available insurance coverage; the resolution of pending legal proceedings; and other risks and uncertainties detailed in our most recent Forms 10-K, Form 10-Qs and Form 8-Ks filed with or furnished to the SEC.

If one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assumptions prove incorrect, actual results or outcomes may vary materially from those reflected in our forward-looking statements. Forward-looking and other statements in this presentation regarding our environmental, social and other sustainability plans, goals or activities are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the SEC. In addition, historical, current, and forward-looking environmental, social and sustainability-related statements may be based on standards still developing, internal controls and processes that we continue to evolve, and assumptions subject to change in the future. Statements in this release are made as of the date hereof, and the Company disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

Financial information is displayed beginning on the next page.

The financial statements and supplementary information presented in this press release were not audited. This press release presents extracts from the Consolidated Balance Sheets at June 30, 2023 and December 31, 2022; the Consolidated Statements of Operations and Consolidated Statements of Equity for the three and six months ended June 30, 2023 and 2022; and the Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022. Extracts are drawn from the June 30, 2023 unaudited quarterly and year to date financial statements and the December 31, 2022 audited annual financial statements of Tidewater Inc. All per-share amounts are stated on a diluted basis.

TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, except per share data)

	Three Months Ended						Six Months Ended
	June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Revenues:
Vessel revenues	$	210,323		$	162,175		$	401,503		$	266,051
Other operating revenues		4,638			1,272			6,562			3,125
Total revenues		214,961			163,447			408,065			269,176
Costs and expenses:
Vessel operating costs		118,264			100,257			233,723			168,768
Costs of other operating revenues		373			483			1,524			844
General and administrative		26,013			27,804			49,558			46,021
Depreciation and amortization		32,768			31,766			63,434			58,423
Long-lived asset impairment credit		—			—			—			(500	)
(Gain) loss on asset dispositions, net		(1,404	)		1,297			(3,620	)		1,090
Total costs and expenses		176,014			161,607			344,619			274,646
Operating income (loss)		38,947			1,840			63,446			(5,470	)
Other income (expense):
Foreign exchange loss		(3,819	)		(1,881	)		(1,471	)		(935	)
Equity in net earnings (losses) of unconsolidated companies		25			(244	)		25			(244	)
Interest income and other, net		2,790			349			2,920			3,835
Loss on warrants		—			(14,175	)		—			(14,175	)
Interest and other debt costs, net		(4,731	)		(4,284	)		(8,921	)		(8,459	)
Total other expense		(5,735	)		(20,235	)		(7,447	)		(19,978	)
Income (loss) before income taxes		33,212			(18,395	)		55,999			(25,448	)
Income tax expense		11,284			6,619			23,255			11,837
Net income (loss)		21,928			(25,014	)		32,744			(37,285	)
Less: Net income (loss) attributable to noncontrolling interests		(656	)		567			(578	)		464
Net income (loss) attributable to Tidewater Inc.	$	22,584		$	(25,581	)	$	33,322		$	(37,749	)
Basic income (loss) per common share	$	0.44		$	(0.61	)	$	0.66		$	(0.91	)
Diluted income (loss) per common share	$	0.43		$	(0.61	)	$	0.64		$	(0.91	)
Weighted average common shares outstanding		50,857			41,814			50,731			41,614
Dilutive effect of warrants, restricted stock units and stock options		1,148			—			1,260			—
Adjusted weighted average common shares		52,005			41,814			51,991			41,614


TIDEWATER INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands, except share and par value data)

	June 30, 2023			December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	171,261		$	164,192
Restricted cash		1,242			1,241
Trade and other receivables, less allowance for credit losses of $14,758 and $14,060 at June 30, 2023 and December 31, 2022, respectively		195,906			156,465
Marine operating supplies		22,495			30,830
Assets held for sale		630			4,195
Prepaid expenses and other current assets		18,958			20,985
Total current assets		410,492			377,908
Net properties and equipment		784,873			796,655
Deferred drydocking and survey costs		92,481			61,080
Indemnification assets		22,678			28,369
Other assets		33,640			33,644
Total assets	$	1,344,164		$	1,297,656

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	69,822		$	38,946
Accrued costs and expenses		91,875			105,518
Current portion of long-term debt		2,441			—
Other current liabilities		42,305			50,323
Total current liabilities		206,443			194,787
Long-term debt		179,573			169,036
Other liabilities and deferred credits		65,621			67,843

Commitments and contingencies

Equity:
Common stock		51			51
Additional paid-in-capital		1,554,793			1,556,990
Accumulated deficit		(666,327	)		(699,649	)
Accumulated other comprehensive loss		4,566			8,576
Total stockholders' equity		893,083			865,968
Noncontrolling interests		(556	)		22
Total equity		892,527			865,990
Total liabilities and equity	$	1,344,164		$	1,297,656


TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (In Thousands)

	Three Months Ended						Six Months Ended
	June 30, 2023			June 30, 2022			June 30, 2023			June 30, 2022
Net income (loss)	$	21,928		$	(25,014	)	$	32,744		$	(37,285	)
Other comprehensive income (loss):
Unrealized loss on note receivable		(184	)		(846	)		(316	)		(846	)
Change in liability of pension plans		(3,504	)		138			(3,694	)		(59	)
Total comprehensive income (loss)	$	18,240		$	(25,722	)	$	28,734		$	(38,190	)


TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands)

	Six Months			Six Months
	Ended			Ended
	June 30, 2023			June 30, 2022
Operating activities:
Net income (loss)	$	32,744		$	(37,285	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		42,144			40,287
Amortization of deferred drydocking and survey costs		21,290			18,136
Amortization of debt premiums and discounts		842			765
Provision for deferred income taxes		34			145
(Gain) loss on asset dispositions, net		(3,620	)		1,090
Gain on pension settlement		(1,807	)		—
Gain on bargain purchase		—			(1,300	)
Long-lived asset impairment credit		—			(500	)
Loss on warrants		—			14,175
Stock-based compensation expense		4,751			3,421
Changes in assets and liabilities, net of effects of business acquisition:
Trade and other receivables		(37,919	)		(35,085	)
Changes in due to/from affiliate, net		—			(20	)
Accounts payable		30,876			8,072
Accrued expenses		(13,544	)		2,354
Deferred drydocking and survey costs		(52,691	)		(31,063	)
Other, net		(565	)		(16,419	)
Net cash provided by (used in) operating activities		22,535			(33,227	)
Cash flows from investing activities:
Proceeds from sales of assets		8,659			8,163
Acquisitions, net of cash acquired		—			(29,525	)
Additions to properties and equipment		(17,500	)		(5,380	)
Net cash used in investing activities		(8,841	)		(26,742	)
Cash flows from financing activities:
Acquisition of non-controlling interest in a majority owned subsidiary		(1,427	)		—
Debt issuance and modification costs		—			(371	)
Tax on share-based awards		(5,521	)		(2,176	)
Net cash used in financing activities		(6,948	)		(2,547	)
Net change in cash, cash equivalents and restricted cash		6,746			(62,516	)
Cash, cash equivalents and restricted cash at beginning of period		167,977			154,276
Cash, cash equivalents and restricted cash at end of period	$	174,723		$	91,760


Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest, net of amounts capitalized	$	7,846	$	7,626
Income taxes	$	27,201	$	9,330
Supplemental disclosure of noncash investing activities:
Acquisition of SPO	$	—	$	162,648
Purchase of three vessels	$	12,171	$	—
Supplemental disclosure of noncash financing activities:
Warrants issued for SPO acquisition	$	—	$	162,648
Debt incurred for the purchase of three vessels	$	12,171	$	—

Note: Cash, cash equivalents and restricted cash at June 30, 2023 includes $2.2 million in long-term restricted cash, which is included in other assets in our consolidated balance sheet.


TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (In Thousands)

	Three Months Ended
								Accumulated
			Additional					other			Non
	Common		paid-in		Accumulated			comprehensive			controlling
	stock		capital		deficit			income (loss)			interest			Total
Balance at March 31, 2023	$	51	$	1,553,919	$	(688,911	)	$	8,254		$	100		$	873,413
Total comprehensive income (loss)		—		—		22,584			(3,688	)		(656	)		18,240
Amortization of share-based awards		—		874		—			—			—			874
Balance at June 30, 2023	$	51	$	1,554,793	$	(666,327	)	$	4,566		$	(556	)	$	892,527

Balance at March 31, 2022	$	42	$	1,376,934	$	(690,068	)	$	2,471		$	363		$	689,742
Total comprehensive loss		—		—		(25,581	)		(708	)		567			(25,722	)
SPO acquisition warrants		—		176,823		—			—			—			176,823
Amortization of share-based awards		—		804		—			—			—			804
Balance at June 30, 2022	$	42	$	1,554,561	$	(715,649	)	$	1,763		$	930		$	841,647

	Six Months Ended
									Accumulated
			Additional						other			Non
	Common		paid-in			Accumulated			comprehensive			controlling
	stock		capital			deficit			income (loss)			interest			Total
Balance at December 31, 2022	$	51	$	1,556,990		$	(699,649	)	$	8,576		$	22		$	865,990
Total comprehensive income (loss)		—		—			33,322			(4,010	)		(578	)		28,734
Acquisition of non-controlling interest in a majority owned subsidiary		—		(1,427	)		—			—			—			(1,427	)
Amortization of share-based awards		—		(770	)		—			—			—			(770	)
Balance at June 30, 2023	$	51	$	1,554,793		$	(666,327	)	$	4,566		$	(556	)	$	892,527


Balance at December 31, 2021	$	41	$	1,376,494		$	(677,900	)	$	2,668		$	466		$	701,769
Total comprehensive loss		—		—			(37,749	)		(905	)		464			(38,190	)
Issuance of common stock		1		(1	)		—			—			—			—
SPO acquisition warrants		—		176,823			—			—			—			176,823
Amortization of share-based awards		—		1,245			—			—			—			1,245
Balance at June 30, 2022	$	42	$	1,554,561		$	(715,649	)	$	1,763		$	930		$	841,647

The company’s vessel revenues and vessel operating costs and the related percentage of total vessel revenues, were as follows:

(In Thousands)	Three Months Ended								Six Months Ended
	June 30, 2023				June 30, 2022				June 30, 2023				June 30, 2022
Vessel revenues:
Americas	$	50,376	24	%	$	37,520	23	%	$	98,063	24	%	$	65,964	25	%
Asia Pacific		22,585	11	%		16,362	10	%		44,609	11	%		21,259	8	%
Middle East		31,856	15	%		28,396	18	%		62,618	16	%		48,614	18	%
Europe/Mediterranean		39,295	19	%		32,475	20	%		70,545	18	%		56,394	21	%
West Africa		66,211	31	%		47,422	29	%		125,668	31	%		73,820	28	%
Total vessel revenues	$	210,323	100	%	$	162,175	100	%	$	401,503	100	%	$	266,051	100	%
Vessel operating costs:
Crew costs	$	68,007	32	%	$	60,639	37	%	$	134,650	34	%	$	101,476	38	%
Repair and maintenance		16,834	8	%		13,477	8	%		33,486	8	%		22,938	9	%
Insurance		2,168	1	%		1,366	1	%		4,173	1	%		2,750	1	%
Fuel, lube and supplies		13,958	7	%		11,521	7	%		27,513	7	%		18,597	7	%
Other		17,297	8	%		13,254	8	%		33,901	8	%		23,007	9	%
Total vessel operating costs		118,264	56	%		100,257	62	%		233,723	58	%		168,768	63	%
Vessel operating margin (A)	$	92,059	44	%	$	61,918	38	%	$	167,780	42	%	$	97,283	37	%

Note (A): Vessel operating margin equals vessel revenues less vessel operating costs.

The company’s operating loss and other components of loss before income taxes and its related percentage of total revenues, were as follows:

(In Thousands)	Three Months Ended										Six Months Ended
	June 30, 2023					June 30, 2022					June 30, 2023					June 30, 2022
Vessel operating profit (loss):
Americas	$	6,245		3	%	$	5,930		4	%	$	14,207		3	%	$	5,848		2	%
Asia Pacific		7,026		3	%		(899	)	(1	)%		12,594		3	%		1,274		0	%
Middle East		(1,657	)	(1	)%		(307	)	(0	)%		(2,001	)	(0	)%		(2,190	)	(1	)%
Europe/Mediterranean		8,307		4	%		4,262		3	%		10,343		3	%		1,833		1	%
West Africa		25,474		12	%		9,270		6	%		42,695		10	%		12,485		5	%
Other operating profit		4,265		2	%		790		0	%		5,038		1	%		2,282		1	%
	49,660			23	%	19,046			12	%	82,876			20	%	21,532			8	%

Corporate expenses (A)		(12,117	)	(6	)%		(15,909	)	(10	)%		(23,050	)	(5	)%		(26,412	)	(10	)%
Gain on asset dispositions, net		1,404		1	%		(1,297	)	(1	)%		3,620		1	%		(1,090	)	(0	)%
Long-lived asset impairment credit		—		0	%		—		0	%		—		0	%		500		0	%
Operating income (loss)	$	38,947		18	%	$	1,840		1	%	$	63,446		16	%	$	(5,470	)	(2	)%

Note (A): General and administrative expenses for the three months and six months ended June 30, 2023 include stock-based compensation of $2.7 million and $4.8 million, respectively. General and administrative expenses for the three and six months ended June 30, 2022 include stock-based compensation of $1.9 million and $3.4 million, respectively. In addition, vessel operating and general and administrative costs for the three months and six months ended June 30, 2023, include $1.3 million and $2.7 million in one-time acquisition, restructuring and integration related costs, respectively. Vessel operating and general and administrative costs for the three and six months ended June 30, 2022, include $7.3 million and $9.6 million in one-time acquisition, restructuring and integration related costs, respectively.


TIDEWATER INC. CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) – QUARTERLY DATA (In Thousands, except per share data)

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2023			2023			2022			2022			2022
Revenues:
Vessel revenues	$	210,323		$	191,180		$	185,106		$	190,247		$	162,175
Other operating revenues		4,638			1,924			1,640			1,515			1,272
Total revenues		214,961			193,104			186,746			191,762			163,447
Costs and expenses:
Vessel operating costs (A)		118,264			115,459			115,496			113,037			100,257
Costs of other operating revenue		373			1,151			694			592			483
General and administrative (A)		26,013			23,545			28,633			27,267			27,804
Depreciation and amortization		32,768			30,666			29,881			30,856			31,766
Long-lived asset impairment and other		—			—			—			1,214			—
(Gain) loss on asset dispositions, net		(1,404	)		(2,216	)		(1,076	)		(264	)		1,297
Total operating costs and expenses		176,014			168,605			173,628			172,702			161,607
Operating income		38,947			24,499			13,118			19,060			1,840
Other income (expense):
Foreign exchange gain (loss)		(3,819	)		2,348			2,105			(3,997	)		(1,881	)
Equity in net earnings (losses) of unconsolidated companies		25			—			14			9			(244	)
Interest income and other, net		2,790			130			981			581			349
Loss on warrants		—			—			—			—			(14,175	)
Interest and other debt costs, net		(4,731	)		(4,190	)		(4,339	)		(4,391	)		(4,284	)
Total other expense		(5,735	)		(1,712	)		(1,239	)		(7,798	)		(20,235	)
Income (loss) before income taxes		33,212			22,787			11,879			11,262			(18,395	)
Income tax expense		11,284			11,971			1,697			6,352			6,619
Net income (loss)		21,928			10,816			10,182			4,910			(25,014	)
Net income (loss) attributable to noncontrolling interests		(656	)		78			(438	)		(470	)		567
Net income (loss) attributable to Tidewater Inc.	$	22,584		$	10,738		$	10,620		$	5,380		$	(25,581	)
Basic income (loss) per common share	$	0.44		$	0.21		$	0.22		$	0.12		$	(0.61	)
Diluted income (loss) per common share	$	0.43		$	0.21		$	0.20		$	0.10		$	(0.61	)
Weighted average common shares outstanding		50,857			50,604			48,766			44,451			41,814
Dilutive effect of warrants, restricted stock units and stock options		1,148			1,368			3,069			7,069			—
Adjusted weighted average common shares		52,005			51,972			51,835			51,520			41,814

Vessel operating margin	$	92,059		$	75,721		$	69,610		$	77,210		$	61,918

Note (A): One-time acquisition, restructuring and integration related costs	$	1,242		$	1,426		$	5,150		$	4,332		$	7,314


TIDEWATER INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands)

	June 30,			March 31,			December 31,			September 30,			June 30,
	2023			2023			2022			2022			2022
ASSETS
Current assets:
Cash and cash equivalents	$	171,261		$	165,145		$	164,192		$	115,014		$	87,981
Restricted cash		1,242			4,972			1,241			4,965			1,240
Trade and other receivables, net		195,906			182,198			156,465			181,646			189,259
Marine operating supplies		22,495			24,448			30,830			20,764			21,182
Assets held for sale		630			695			4,195			6,815			6,862
Prepaid expenses and other current assets		18,958			18,978			20,985			17,509			23,259
Total current assets		410,492			396,436			377,908			346,713			329,783
Net properties and equipment		784,873			786,168			796,655			815,990			838,612
Deferred drydocking and survey costs		92,481			82,787			61,080			57,877			53,661
Indemnification assets		22,678			27,698			28,369			30,117			30,269
Other assets		33,640			34,058			33,644			32,364			30,410
Total assets	$	1,344,164		$	1,327,147		$	1,297,656		$	1,283,061		$	1,282,735

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	69,822		$	64,775		$	38,946		$	31,829		$	30,537
Accrued costs and expenses		91,875			107,348			105,518			105,945			109,212
Current portion of long-term debt		2,441			—			—			—			—
Other current liabilities		42,305			43,220			50,323			46,629			47,872
Total current liabilities		206,443			215,343			194,787			184,403			187,621
Long-term debt		179,573			169,423			169,036			168,649			168,279
Other liabilities and deferred credits		65,621			68,968			67,843			82,910			85,188


Equity:
Common stock		51			51			51			46			42
Additional paid-in-capital		1,554,793			1,553,919			1,556,990			1,555,388			1,554,561
Accumulated deficit		(666,327	)		(688,911	)		(699,649	)		(710,269	)		(715,649	)
Accumulated other comprehensive income		4,566			8,254			8,576			1,474			1,763
Total stockholders' equity		893,083			873,313			865,968			846,639			840,717
Noncontrolling interests		(556	)		100			22			460			930
Total equity		892,527			873,413			865,990			847,099			841,647
Total liabilities and equity	$	1,344,164		$	1,327,147		$	1,297,656		$	1,283,061		$	1,282,735


TIDEWATER INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS – QUARTERLY DATA (In Thousands)

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2023			2023			2022			2022			2022
Operating activities:
Net income (loss)	$	21,928		$	10,816		$	10,182		$	4,910		$	(25,014	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		21,096			21,048			20,983			22,252			22,614
Amortization of deferred drydocking and survey costs		11,672			9,618			8,898			8,604			9,152
Amortization of debt premiums and discounts		422			420			522			392			390
(Provision) benefit for deferred income taxes		(1	)		35			(98	)		(11	)		(32	)
(Gain) loss on asset dispositions, net		(1,404	)		(2,216	)		(1,076	)		(264	)		1,297
Gain on pension settlement		(1,807	)		—			—			—			—
Long-lived asset impairment and other		—			—			—			1,214			—
Loss on warrants		—			—			—			—			14,175
Stock-based compensation expense		2,648			2,103			2,028			1,923			1,963
Changes in assets and liabilities, net of effects of business acquisition:
Trade and other receivables		(12,186	)		(25,733	)		26,172			4,784			(19,515	)
Accounts payable		5,047			25,829			7,117			1,292			5,247
Accrued expenses		(15,374	)		1,830			(427	)		(3,267	)		(853	)
Deferred drydocking and survey costs		(21,366	)		(31,325	)		(12,117	)		(12,820	)		(18,451	)
Other, net		(934	)		369			(16,844	)		(896	)		(12,576	)
Net cash provided by (used in) operating activities		9,741			12,794			45,340			28,113			(21,603	)
Cash flows from investing activities:
Proceeds from sales of assets		2,943			5,716			5,093			312			3,535
Acquisitions, net of cash acquired		—			—			—			8,785			(28,486	)
Additions to properties and equipment		(8,849	)		(8,651	)		(4,929	)		(6,328	)		(4,151	)
Net cash provided by (used in) investing activities		(5,906	)		(2,935	)		164			2,769			(29,102	)
Cash flows from financing activities:
Proceeds from stock offering		—			—			117,202			70,630			—
Repurchase of SPO acquisition warrants		—			—			(117,202	)		(70,630	)		—
Acquisition of non-controlling interest in a majority owned subsidiary		—			(1,427	)		—			—			—
Debt issuance and modification costs		—			—			—			(22	)		(108	)
Tax on share-based awards		(1,774	)		(3,747	)		(47	)		(100	)		(1,159	)
Net cash used in financing activities		(1,774	)		(5,174	)		(47	)		(122	)		(1,267	)
Net change in cash, cash equivalents and restricted cash		2,061			4,685			45,457			30,760			(51,972	)
Cash, cash equivalents and restricted cash at beginning of period		172,662			167,977			122,520			91,760			143,732
Cash, cash equivalents and restricted cash at end of period	$	174,723		$	172,662		$	167,977		$	122,520		$	91,760

Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest, net of amounts capitalized	$	7,748		$	98		$	7,575		$	353		$	7,626
Income taxes	$	10,144		$	17,057		$	6,132		$	6,813		$	6,130
Supplemental disclosure of noncash investing activities:
Acquisition of SPO	$	—		$	—		$	—		$	—		$	162,648
Purchase of three vessels	$	12,171		$	—		$	—		$	—		$	—
Supplemental disclosure of noncash financing activities:
Warrants issued for SPO acquisition	$	—		$	—		$	—		$	—		$	162,648
Repurchase of SPO acquisition warrants	$	—		$	—		$	373		$	992		$	—
Debt incurred for purchase of three vessels	$	12,171		$	—		$	—		$	—		$	—


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)

	Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2023		2023		2022		2022		2022
VESSEL REVENUE BY VESSEL CLASS

Americas fleet:
PSV > 900	$	20,316	$	20,556	$	17,814	$	15,676	$	15,204
PSV < 900		19,134		17,390		16,486		16,460		15,470
AHTS > 16K		3,425		3,395		2,873		3,429		2,390
AHTS 8 - 16K		2,807		2,807		1,899		1,601		1,130
AHTS 4 - 8K		1,480		1,521		1,553		1,185		1,438
Other		3,214		2,018		1,160		771		1,888
Total		50,376		47,687		41,785		39,122		37,520
Asia Pacific fleet:
PSV > 900		9,648		9,101		6,692		10,896		7,258
PSV < 900		5,811		5,133		3,120		3,891		3,006
AHTS > 16K		2,065		1,342		3,260		3,128		1,504
AHTS 8 - 16K		5,001		5,397		4,364		4,333		2,940
AHTS 4 - 8K		8		998		1,584		1,605		1,433
Other		52		53		50		49		221
Total		22,585		22,024		19,070		23,902		16,362
Middle East fleet:
PSV > 900		1,211		1,192		1,218		2,771		2,814
PSV < 900		16,812		14,965		15,517		16,063		13,798
AHTS > 16K		1,217		2,316		2,351		2,350		1,750
AHTS 8 - 16K		4,276		4,593		4,146		3,397		3,808
AHTS 4 - 8K		8,340		7,696		7,343		6,605		6,226
Total		31,856		30,762		30,575		31,186		28,396
Europe/Mediterranean fleet:
PSV > 900		29,592		23,368		24,783		27,167		23,684
PSV < 900		7,205		5,153		7,874		7,092		6,868
AHTS > 16K		2,228		2,511		643		5,251		1,776
Other		270		218		182		192		147
Total		39,295		31,250		33,482		39,702		32,475
West Africa fleet:
PSV > 900		11,550		9,900		10,534		8,041		6,487
PSV < 900		25,419		24,835		20,494		18,249		13,801
AHTS > 16K		9,129		6,237		5,385		6,152		4,315
AHTS 8 - 16K		9,870		9,827		11,810		11,236		10,724
AHTS 4 - 8K		3,496		2,360		5,780		6,445		4,576
Other		6,747		6,298		6,191		6,212		7,519
Total		66,211		59,457		60,194		56,335		47,422
Worldwide fleet:
PSV > 900		72,317		64,117		61,041		64,551		55,447
PSV < 900		74,381		67,476		63,491		61,755		52,943
AHTS > 16K		18,064		15,801		14,512		20,310		11,735
AHTS 8 - 16K		21,954		22,624		22,219		20,567		18,602
AHTS 4 - 8K		13,324		12,575		16,260		15,840		13,673
Other		10,283		8,587		7,583		7,224		9,775
Total	$	210,323	$	191,180	$	185,106	$	190,247	$	162,175


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2023			2023			2022			2022			2022
AVERAGE NUMBER OF VESSELS:

Americas fleet:
PSV > 900		10			10			10			11			10
PSV < 900		15			15			16			17			17
AHTS > 16K		2			2			2			2			2
AHTS 8 - 16K		2			2			2			1			1
AHTS 4 - 8K		2			2			2			2			3
Other		2			1			1			1			1
Total		33			32			33			34			34
Stacked vessels		(1	)		(1	)		(2	)		(3	)		(5	)
Active vessels		32			31			31			31			29
Asia Pacific fleet:
PSV > 900		6			5			5			5			6
PSV < 900		2			2			2			2			2
AHTS > 16K		2			1			2			2			1
AHTS 8 - 16K		3			3			3			3			2
AHTS 4 - 8K		1			2			3			4			3
Other		—			1			1			1			5
Total		14			14			16			17			19
Stacked vessels		—			(1	)		(2	)		(2	)		(1	)
Active vessels		14			13			14			15			18
Middle East fleet:
PSV > 900		1			1			2			2			2
PSV < 900		20			21			20			20			19
AHTS > 16K		1			2			2			2			1
AHTS 8 - 16K		5			5			5			5			6
AHTS 4 - 8K		17			14			14			13			13
Total		44			43			43			42			41
Stacked vessels		—			—			—			—			—
Active vessels		44			43			43			42			41
Europe/Mediterranean fleet:
PSV > 900		19			20			20			19			19
PSV < 900		6			6			6			6			7
AHTS > 16K		1			1			1			1			1
Total		26			27			27			26			27
Stacked vessels		—			—			—			—			(2	)
Active vessels		26			27			27			26			25
West Africa fleet:
PSV > 900		7			7			6			6			4
PSV < 900		18			18			18			18			15
AHTS > 16K		5			5			4			4			3
AHTS 8 - 16K		11			11			11			12			10
AHTS 4 - 8K		6			8			8			8			6
Other		23			25			28			28			29
Total		70			74			75			76			67
Stacked vessels		(5	)		(8	)		(10	)		(9	)		(8	)
Active vessels		65			66			65			67			59
Worldwide fleet:
PSV > 900		43			43			43			43			41
PSV < 900		61			62			62			63			60
AHTS > 16K		11			11			11			11			8
AHTS 8 - 16K		21			21			21			21			19
AHTS 4 - 8K		26			26			27			27			25
Other		25			27			30			30			35
Total		187			190			194			195			188
Stacked vessels		(6	)		(10	)		(14	)		(14	)		(16	)
Active vessels		181			180			180			181			172

Total active		181			180			180			181			172
Total stacked		6			10			14			14			16
Total joint venture		—			—			1			1			1
Total		187			190			195			196			189


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA

	Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2023		2023		2022		2022		2022
AVAILABLE DAYS - TOTAL FLEET:

Americas fleet:
PSV > 900		910		907		922		1,012		943
PSV < 900		1,365		1,359		1,499		1,564		1,547
AHTS > 16K		182		180		184		184		152
AHTS 8 - 16K		182		180		184		122		91
AHTS 4 - 8K		182		180		184		184		246
Other		182		121		92		92		121
Total		3,003		2,927		3,065		3,158		3,100
Asia Pacific fleet:
PSV > 900		559		481		460		460		507
PSV < 900		182		180		184		184		183
AHTS > 16K		182		90		184		184		122
AHTS 8 - 16K		273		270		276		276		183
AHTS 4 - 8K		91		180		292		368		304
Other		—		48		92		92		453
Total		1,287		1,249		1,488		1,564		1,752
Middle East fleet:
PSV > 900		91		90		92		123		152
PSV < 900		1,820		1,842		1,840		1,840		1,700
AHTS > 16K		91		180		184		184		122
AHTS 8 - 16K		455		450		460		465		546
AHTS 4 - 8K		1,556		1,291		1,288		1,217		1,183
Total		4,013		3,853		3,864		3,829		3,703
Europe/Mediterranean fleet:
PSV > 900		1,729		1,762		1,838		1,748		1,729
PSV < 900		546		540		552		552		696
AHTS > 16K		139		90		92		92		61
Total		2,414		2,392		2,482		2,392		2,486
West Africa fleet:
PSV > 900		637		630		644		613		406
PSV < 900		1,638		1,620		1,656		1,656		1,367
AHTS > 16K		407		450		368		368		244
AHTS 8 - 16K		1,001		990		1,012		1,074		882
AHTS 4 - 8K		546		720		736		736		548
Other		2,099		2,256		2,545		2,582		2,639
Total		6,328		6,666		6,961		7,029		6,086
Worldwide fleet:
PSV > 900		3,926		3,870		3,956		3,956		3,737
PSV < 900		5,551		5,541		5,731		5,796		5,493
AHTS > 16K		1,001		990		1,012		1,012		701
AHTS 8 - 16K		1,911		1,890		1,932		1,937		1,702
AHTS 4 - 8K		2,375		2,371		2,500		2,505		2,281
Other		2,281		2,425		2,729		2,766		3,213
Total		17,045		17,087		17,860		17,972		17,127


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA

	Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2023		2023		2022		2022		2022
OUT-OF-SERVICE - STACKED DAYS:

Americas fleet:
PSV > 900		—		—		—		—		155
PSV < 900		91		99		211		276		273
AHTS 4 - 8K		—		—		—		—		64
Total		91		99		211		276		492
Asia Pacific fleet:
AHTS 4 - 8K		—		—		54		61		—
Other		—		48		92		92		61
Total		—		48		146		153		61
Europe/Mediterranean fleet:
PSV < 900		—		—		—		—		150
Total		—		—		—		—		150
West Africa fleet:
PSV < 900		—		—		—		—		18
AHTS 4 - 8K		182		180		158		92		56
Other		265		540		797		747		678
Total		447		720		955		839		752
Worldwide fleet:
PSV > 900		—		—		—		—		155
PSV < 900		91		99		211		276		441
AHTS 4 - 8K		182		180		212		153		120
Other		265		588		889		839		739
Total		538		867		1,312		1,268		1,455


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA

	Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2023		2023		2022		2022		2022
AVAILABLE DAYS - ACTIVE FLEET:

Americas fleet:
PSV > 900		910		907		922		1,012		788
PSV < 900		1,274		1,260		1,288		1,288		1,274
AHTS > 16K		182		180		184		184		152
AHTS 8 - 16K		182		180		184		122		91
AHTS 4 - 8K		182		180		184		184		182
Other		182		121		92		92		121
Total		2,912		2,828		2,854		2,882		2,608
Asia Pacific fleet:
PSV > 900		559		481		460		460		507
PSV < 900		182		180		184		184		183
AHTS > 16K		182		90		184		184		122
AHTS 8 - 16K		273		270		276		276		183
AHTS 4 - 8K		91		180		238		307		304
Other		—		—		—		—		392
Total		1,287		1,201		1,342		1,411		1,691
Middle East fleet:
PSV > 900		91		90		92		123		152
PSV < 900		1,820		1,842		1,840		1,840		1,700
AHTS > 16K		91		180		184		184		122
AHTS 8 - 16K		455		450		460		465		546
AHTS 4 - 8K		1,556		1,291		1,288		1,217		1,183
Total		4,013		3,853		3,864		3,829		3,703
Europe/Mediterranean fleet:
PSV > 900		1,729		1,762		1,838		1,748		1,729
PSV < 900		546		540		552		552		546
AHTS > 16K		139		90		92		92		61
Total		2,414		2,392		2,482		2,392		2,336
West Africa fleet:
PSV > 900		637		630		644		613		406
PSV < 900		1,638		1,620		1,656		1,656		1,349
AHTS > 16K		407		450		368		368		244
AHTS 8 - 16K		1,001		990		1,012		1,074		882
AHTS 4 - 8K		364		540		578		644		492
Other		1,834		1,716		1,748		1,835		1,961
Total		5,881		5,946		6,006		6,190		5,334
Worldwide fleet:
PSV > 900		3,926		3,870		3,956		3,956		3,582
PSV < 900		5,460		5,442		5,520		5,520		5,052
AHTS > 16K		1,001		990		1,012		1,012		701
AHTS 8 - 16K		1,911		1,890		1,932		1,937		1,702
AHTS 4 - 8K		2,193		2,191		2,288		2,352		2,161
Other		2,016		1,837		1,840		1,927		2,474
Total		16,507		16,220		16,548		16,704		15,672


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA

		Three Months Ended
	June 30,				March 31,			December 31,			September 30,			June 30,
		2023			2023			2022			2022			2022
UTILIZATION - TOTAL FLEET:

Americas fleet:
PSV > 900			78.5	%		84.2	%		82.6	%		74.6	%		74.4	%
PSV < 900			83.9			79.8			68.1			69.3			67.7
AHTS > 16K			50.0			50.0			48.2			92.4			90.2
AHTS 8 - 16K			100.0			100.0			76.8			89.5			100.0
AHTS 4 - 8K			93.7			96.4			99.2			74.4			67.2
Other			100.0			97.5			100.0			66.5			100.0
Total			82.8	%		82.3	%		74.6	%		73.3	%		73.0	%
Asia Pacific fleet:
PSV > 900			71.1	%		70.8	%		62.6	%		94.5	%		65.5	%
PSV < 900			100.0			90.6			78.4			100.0			66.7
AHTS > 16K			60.7			78.1			90.8			89.9			50.0
AHTS 8 - 16K			85.0			79.8			85.4			97.2			91.2
AHTS 4 - 8K			10.4			80.3			79.5			64.5			56.9
Other			—			—			—			—			74.0
Total			72.4	%		74.8	%		71.7	%		82.5	%		67.9	%
Middle East fleet:
PSV > 900			100.0	%		100.0	%		100.0	%		93.6	%		100.0	%
PSV < 900			81.6			74.4			78.3			84.1			76.5
AHTS > 16K			100.0			100.0			100.0			94.7			100.0
AHTS 8 - 16K			87.0			96.0			84.8			68.5			70.9
AHTS 4 - 8K			63.4			85.7			86.3			84.9			87.1
Total			76.0	%		82.5	%		83.3	%		83.3	%		80.8	%
Europe/Mediterranean fleet:
PSV > 900			91.2	%		82.7	%		87.1	%		95.8	%		88.4	%
PSV < 900			79.0			85.4			93.8			96.4			71.5
AHTS > 16K			43.4			84.1			65.5			76.9			53.4
Total			85.7	%		83.4	%		87.8	%		95.2	%		82.8	%
West Africa fleet:
PSV > 900			83.1	%		83.0	%		85.7	%		70.9	%		96.3	%
PSV < 900			91.1			95.3			89.9			86.6			80.6
AHTS > 16K			92.9			73.5			89.4			100.0			98.1
AHTS 8 - 16K			79.6			79.8			91.1			85.7			95.4
AHTS 4 - 8K			62.9			32.4			62.1			82.6			82.6
Other			49.4			50.3			45.4			44.4			52.9
Total			72.3	%		68.4	%		70.5	%		69.9	%		72.7	%
Worldwide fleet:
PSV > 900			84.3	%		82.0	%		83.3	%		86.3	%		83.1	%
PSV < 900			85.3			83.4			80.5			82.5			74.1
AHTS > 16K			73.0			75.4			81.9			93.7			84.4
AHTS 8 - 16K			84.1			85.6			87.4			83.4			87.4
AHTS 4 - 8K			63.5			69.9			79.4			80.5			79.8
Other			53.4			51.7			45.7			43.7			57.7
Total			76.9	%		76.5	%		76.5	%		77.8	%		75.5	%


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA

		Three Months Ended
	June 30,				March 31,			December 31,			September 30,			June 30,
		2023			2023			2022			2022			2022
UTILIZATION - ACTIVE FLEET:

Americas fleet:
PSV > 900			78.5	%		84.2	%		82.6	%		74.6	%		89.1	%
PSV < 900			89.9			86.1			79.3			84.1			82.3
AHTS > 16K			50.0			50.0			48.2			92.4			90.2
AHTS 8 - 16K			100.0			100.0			76.8			89.5			100.0
AHTS 4 - 8K			93.7			96.4			99.2			74.4			90.8
Other			100.0			97.5			100.0			66.5			100.0
Total			85.4	%		85.2	%		80.1	%		80.3	%		86.8	%
Asia Pacific fleet:
PSV > 900			71.1	%		70.8	%		62.6	%		94.5	%		65.5	%
PSV < 900			100.0			90.6			78.4			100.0			66.7
AHTS > 16K			60.7			78.1			90.8			89.9			50.0
AHTS 8 - 16K			85.0			79.8			85.4			97.2			91.2
AHTS 4 - 8K			10.4			80.3			97.4			77.4			56.9
Other			—			—			—			—			85.5
Total			72.4	%		77.8	%		79.5	%		91.4	%		70.4	%
Middle East fleet:
PSV > 900			100.0	%		100.0	%		100.0	%		93.6	%		100.0	%
PSV < 900			81.6			74.4			78.3			84.1			76.5
AHTS > 16K			100.0			100.0			100.0			94.7			100.0
AHTS 8 - 16K			87.0			96.0			84.8			68.5			70.9
AHTS 4 - 8K			63.4			85.7			86.3			84.9			87.1
Total			76.0	%		82.5	%		83.3	%		83.3	%		80.8	%
Europe/Mediterranean fleet:
PSV > 900			91.2	%		82.7	%		87.1	%		95.8	%		88.4	%
PSV < 900			79.0			85.4			93.8			96.4			91.1
AHTS > 16K			43.4			84.1			65.5			76.9			53.4
Total			85.7	%		83.4	%		87.8	%		95.2	%		88.1	%
West Africa fleet:
PSV > 900			83.1	%		83.0	%		85.7	%		70.9	%		96.3	%
PSV < 900			91.1			95.3			89.9			86.6			81.7
AHTS > 16K			92.9			73.5			89.4			100.0			98.1
AHTS 8 - 16K			79.6			79.8			91.1			85.7			95.4
AHTS 4 - 8K			94.3			43.2			79.1			94.5			92.0
Other			56.5			66.2			66.1			62.5			71.2
Total			77.8	%		76.6	%		81.7	%		79.4	%		82.9	%
Worldwide fleet:
PSV > 900			84.3	%		82.0	%		83.3	%		86.3	%		86.7	%
PSV < 900			86.7			84.9			83.6			86.6			80.6
AHTS > 16K			73.0			75.4			81.9			93.7			84.4
AHTS 8 - 16K			84.1			85.6			87.4			83.4			87.4
AHTS 4 - 8K			68.8			75.7			86.7			85.7			84.3
Other			60.4			68.2			67.8			62.7			74.9
Total			79.4	%		80.6	%		82.5	%		83.7	%		82.5	%


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA

	Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2023		2023		2022		2022		2022
AVERAGE VESSEL DAY RATES: (A)

Americas fleet:
PSV > 900	$	28,446	$	26,930	$	23,401	$	20,775	$	21,658
PSV < 900		16,702		16,037		16,146		15,197		14,762
AHTS > 16K		37,640		37,720		32,368		20,175		17,430
AHTS 8 - 16K		15,421		15,593		13,431		14,668		12,424
AHTS 4 - 8K		8,678		8,764		8,511		8,654		8,701
Other		17,658		17,110		12,611		12,616		15,601
Total		20,269		19,794		18,271		16,901		16,569
Asia Pacific fleet:
PSV > 900		24,276		26,723		23,237		25,072		21,850
PSV < 900		31,927		31,488		21,627		21,148		24,640
AHTS > 16K		18,690		19,095		19,519		18,902		24,664
AHTS 8 - 16K		21,561		25,049		18,509		16,144		17,609
AHTS 4 - 8K		946		6,903		6,822		6,759		8,281
Other		—		—		—		—		660
Total		24,250		23,582		17,868		18,530		13,748
Middle East fleet:
PSV > 900		13,304		13,251		13,234		24,061		18,513
PSV < 900		11,320		10,926		10,768		10,378		10,607
AHTS > 16K		13,378		12,868		12,777		13,487		14,348
AHTS 8 - 16K		10,804		10,632		10,627		10,666		9,832
AHTS 4 - 8K		8,460		6,953		6,604		6,396		6,044
Total		10,449		9,679		9,498		9,781		9,490
Europe/Mediterranean fleet:
PSV > 900		18,757		16,031		15,476		16,229		15,496
PSV < 900		16,709		11,177		15,212		13,323		13,806
AHTS > 16K		36,913		33,164		10,682		74,231		54,472
Total		18,990		15,669		15,364		17,436		15,776
West Africa fleet:
PSV > 900		21,815		18,931		19,096		18,502		16,592
PSV < 900		17,040		16,080		13,758		12,721		12,528
AHTS > 16K		24,154		18,863		16,367		16,719		18,036
AHTS 8 - 16K		12,382		12,433		12,809		12,212		12,743
AHTS 4 - 8K		10,178		10,113		12,637		10,595		10,105
Other		6,511		5,548		5,359		5,415		5,381
Total		14,469		13,047		12,272		11,467		10,721
Worldwide fleet:
PSV > 900		21,850		20,198		18,529		18,914		17,854
PSV < 900		15,706		14,597		13,762		12,915		13,008
AHTS > 16K		24,719		21,163		17,505		21,415		19,824
AHTS 8 - 16K		13,662		13,984		13,153		12,726		12,511
AHTS 4 - 8K		8,828		7,583		8,196		7,859		7,507
Other		8,441		6,852		6,080		5,979		5,275
Total	$	16,042	$	14,624	$	13,554	$	13,606	$	12,544

Note (A): Average Vessel Day Rates equals Vessel Revenue / Days Worked.


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2023			2023			2022			2022			2022

Americas
Vessel revenues	$	50,376		$	47,687		$	41,785		$	39,122		$	37,520

Vessel operating costs:
Crew costs		18,033			17,402			16,486			16,080			12,949
Repair and maintenance		3,973			3,888			3,619			3,594			2,866
Insurance		479			410			410			414			248
Fuel, lube and supplies		2,549			2,999			2,387			2,557			2,326
Other		4,564			3,572			5,102			3,090			3,054
Total vessel operating costs		29,598			28,271			28,004			25,735			21,443

Vessel operating margin ($)		20,778			19,416			13,781			13,387			16,077
Vessel operating margin (%)		41.2	%		40.7	%		33.0	%		34.2	%		42.8	%

Americas - Select operating statistics
Average vessels - Total fleet		33			32			33			34			34
Utilization - Total fleet		82.8	%		82.3	%		74.6	%		73.3	%		73.0	%

Average vessels - Active fleet		32			31			31			31			29
Utilization - Active fleet		85.4	%		85.2	%		80.1	%		80.3	%		86.8	%

Average day rates	$	20,269		$	19,794		$	18,271		$	16,901		$	16,569

Vessels commencing drydocks		4			2			2			4			3


Deferred drydocking and survey costs - beginning balance	$	27,832		$	21,720		$	21,772		$	19,208		$	18,422
Cash paid for deferred drydocking and survey costs		5,867			8,218			4,389			5,678			3,857
Amortization of deferred drydocking and survey costs		(2,626	)		(3,417	)		(3,025	)		(2,932	)		(3,071	)
Disposals, intersegment transfers and other		(1,304	)		1,311			(1,416	)		(182	)		—
Deferred drydocking and survey costs - ending balance	$	29,769		$	27,832		$	21,720		$	21,772		$	19,208


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2023			2023			2022			2022			2022

Asia Pacific
Vessel revenues	$	22,585		$	22,024		$	19,070		$	23,902		$	16,362

Vessel operating costs:
Crew costs		7,062			7,311			9,876			10,631			8,138
Repair and maintenance		1,517			1,749			901			947			945
Insurance		219			123			183			189			90
Fuel, lube and supplies		1,521			1,630			1,299			1,145			1,590
Other		1,648			1,678			1,574			1,909			1,176
Total vessel operating costs		11,967			12,491			13,833			14,821			11,939

Vessel operating margin ($)		10,618			9,533			5,237			9,081			4,423
Vessel operating margin (%)		47.0	%		43.3	%		27.5	%		38.0	%		27.0	%

Asia Pacific - Select operating statistics
Average vessels - Total fleet		14			14			16			17			19
Utilization - Total fleet		72.4	%		74.8	%		71.7	%		82.5	%		67.9	%

Average vessels - Active fleet		14			13			14			15			18
Utilization - Active fleet		72.4	%		77.8	%		79.5	%		91.4	%		70.4	%

Average day rates	$	24,250		$	23,582		$	17,868		$	18,530		$	13,748

Vessels commencing drydocks		—			1			2			—			2


Deferred drydocking and survey costs - beginning balance	$	2,525		$	553		$	979		$	852		$	542
Cash paid for deferred drydocking and survey costs		(4	)		2,368			156			702			1,262
Amortization of deferred drydocking and survey costs		(393	)		(282	)		(117	)		(139	)		(163	)
Disposals, intersegment transfers and other		—			(114	)		(465	)		(436	)		(789	)
Deferred drydocking and survey costs - ending balance	$	2,128		$	2,525		$	553		$	979		$	852


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2023			2023			2022			2022			2022

Middle East
Vessel revenues	$	31,856		$	30,762		$	30,575		$	31,186		$	28,396

Vessel operating costs:
Crew costs		13,170			12,616			12,472			12,814			11,193
Repair and maintenance		3,779			3,475			3,216			3,441			3,429
Insurance		465			433			384			406			325
Fuel, lube and supplies		3,470			2,870			2,991			3,281			2,700
Other		3,756			3,669			2,505			1,804			2,249
Total vessel operating costs		24,640			23,063			21,568			21,746			19,896

Vessel operating margin ($)		7,216			7,699			9,007			9,440			8,500
Vessel operating margin (%)		22.7	%		25.0	%		29.5	%		30.3	%		29.9	%

Middle East - Select operating statistics
Average vessels - Total fleet		44			43			43			42			41
Utilization - Total fleet		76.0	%		82.5	%		83.3	%		83.3	%		80.8	%

Average vessels - Active fleet		44			43			43			42			41
Utilization - Active fleet		76.0	%		82.5	%		83.3	%		83.3	%		80.8	%

Average day rates	$	10,449		$	9,679		$	9,498		$	9,781		$	9,490

Vessels commencing drydocks		7			5			5			5			7


Deferred drydocking and survey costs - beginning balance	$	20,677		$	15,062		$	14,993		$	14,980		$	10,665
Cash paid for deferred drydocking and survey costs		4,262			7,787			1,930			2,345			6,362
Amortization of deferred drydocking and survey costs		(3,778	)		(1,913	)		(2,323	)		(2,346	)		(2,308	)
Disposals, intersegment transfers and other		1,556			(259	)		462			14			261
Deferred drydocking and survey costs - ending balance	$	22,717		$	20,677		$	15,062		$	14,993		$	14,980


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2023			2023			2022			2022			2022

Europe/Mediterranean
Vessel revenues	$	39,295		$	31,250		$	33,482		$	39,702		$	32,475

Vessel operating costs:
Crew costs		13,406			12,727			13,010			12,347			12,349
Repair and maintenance		2,900			2,706			3,067			1,652			2,414
Insurance		354			384			386			440			307
Fuel, lube and supplies		2,363			1,584			2,051			1,158			1,740
Other		2,292			2,371			1,762			2,170			2,468
Total vessel operating costs		21,315			19,772			20,276			17,767			19,278

Vessel operating margin ($)		17,980			11,478			13,206			21,935			13,197
Vessel operating margin (%)		45.8	%		36.7	%		39.4	%		55.2	%		40.6	%

Europe/Mediterranean - Select operating statistics
Average vessels - Total fleet		26			27			27			26			27
Utilization - Total fleet		85.7	%		83.4	%		87.8	%		95.2	%		82.8	%

Average vessels - Active fleet		26			27			27			26			25
Utilization - Active fleet		85.7	%		83.4	%		87.8	%		95.2	%		88.1	%

Average day rates	$	18,990		$	15,669		$	15,364		$	17,436		$	15,776

Vessels commencing drydocks		4			4			3			1			3


Deferred drydocking and survey costs - beginning balance	$	11,363		$	9,566		$	8,588		$	9,231		$	6,425
Cash paid for deferred drydocking and survey costs		2,217			5,128			1,175			315			4,206
Amortization of deferred drydocking and survey costs		(1,875	)		(1,739	)		(1,523	)		(1,244	)		(1,400	)
Disposals, intersegment transfers and other		—			(1,592	)		1,326			286			—
Deferred drydocking and survey costs - ending balance	$	11,705		$	11,363		$	9,566		$	8,588		$	9,231


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2023			2023			2022			2022			2022

West Africa
Vessel revenues	$	66,211		$	59,457		$	60,194		$	56,335		$	47,422

Vessel operating costs:
Crew costs		16,336			16,587			17,855			19,317			16,010
Repair and maintenance		4,665			4,834			3,971			3,910			3,823
Insurance		651			655			664			539			396
Fuel, lube and supplies		4,055			4,472			4,113			4,150			3,165
Other		5,037			5,314			5,212			5,052			4,307
Total vessel operating costs		30,744			31,862			31,815			32,968			27,701

Vessel operating margin ($)		35,467			27,595			28,379			23,367			19,721
Vessel operating margin (%)		53.6	%		46.4	%		47.1	%		41.5	%		41.6	%

West Africa - Select operating statistics
Average vessels - Total fleet		70			74			75			76			67
Utilization - Total fleet		72.3	%		68.4	%		70.5	%		69.9	%		72.7	%

Average vessels - Active fleet		65			66			65			67			59
Utilization - Active fleet		77.8	%		76.6	%		81.7	%		79.4	%		82.9	%

Average day rates	$	14,469		$	13,047		$	12,272		$	11,467		$	10,721

Vessels commencing drydocks		4			6			2			5			5


Deferred drydocking and survey costs - beginning balance	$	20,390		$	14,179		$	11,545		$	9,390		$	8,308
Cash paid for deferred drydocking and survey costs		9,024			7,824			4,467			3,780			2,764
Amortization of deferred drydocking and survey costs		(3,000	)		(2,267	)		(1,909	)		(1,943	)		(2,210	)
Disposals, intersegment transfers and other		(252	)		654			76			318			528
Deferred drydocking and survey costs - ending balance	$	26,162		$	20,390		$	14,179		$	11,545		$	9,390


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2023			2023			2022			2022			2022

Worldwide
Vessel revenues	$	210,323		$	191,180		$	185,106		$	190,247		$	162,175

Vessel operating costs:
Crew costs		68,007			66,643			69,699			71,189			60,639
Repair and maintenance		16,834			16,652			14,774			13,544			13,477
Insurance		2,168			2,005			2,027			1,988			1,366
Fuel, lube and supplies		13,958			13,555			12,841			12,291			11,521
Other		17,297			16,604			16,155			14,025			13,254
Total vessel operating costs		118,264			115,459			115,496			113,037			100,257

Vessel operating margin ($)		92,059			75,721			69,610			77,210			61,918
Vessel operating margin (%)		43.8	%		39.6	%		37.6	%		40.6	%		38.2	%

Worldwide - Select operating statistics
Average vessels - Total fleet		187			190			194			195			188
Utilization - Total fleet		76.9	%		76.5	%		76.5	%		77.8	%		75.5	%

Average vessels - Active fleet		181			180			180			181			172
Utilization - Active fleet		79.4	%		80.6	%		82.5	%		83.7	%		82.5	%

Average day rates	$	16,042		$	14,624		$	13,554		$	13,606		$	12,544

Vessels commencing drydocks		19			18			14			15			20


Deferred drydocking and survey costs - beginning balance	$	82,787		$	61,080		$	57,877		$	53,661		$	44,362
Cash paid for deferred drydocking and survey costs		21,366			31,325			12,117			12,820			18,451
Amortization of deferred drydocking and survey costs		(11,672	)		(9,618	)		(8,897	)		(8,604	)		(9,152	)
Disposals, intersegment transfers and other		—			—			(17	)		—			—
Deferred drydocking and survey costs - ending balance	$	92,481		$	82,787		$	61,080		$	57,877		$	53,661


TIDEWATER INC. OTHER FLEET AND FINANCIAL DATA (In Thousands)

	Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2023		2023		2022		2022		2022

Net income (loss)	$	21,928	$	10,816	$	10,182	$	4,910	$	(25,014	)

Interest and other debt costs		4,731		4,190		4,339		4,391		4,284
Income tax expense		11,284		11,971		1,697		6,352		6,619
Depreciation		21,096		21,048		20,983		22,252		22,614
Amortization of deferred drydock and survey costs		11,672		9,618		8,898		8,604		9,152
EBITDA (A), (B), (C)		70,711		57,643		46,099		46,509		17,655

Long-lived asset impairment and other		—		—		—		1,214		—
Loss on warrants		—		—		—		—		14,175
One-time acquisition, restructuring and integration related costs		1,242		1,426		5,150		4,332		7,314
Adjusted EBITDA (A), (B), (C)	$	71,953	$	59,069	$	51,249	$	52,055	$	39,144

Note (A): EBITDA excludes interest and other debt costs, income tax expense, depreciation and amortization. Additionally, Adjusted EBITDA excludes impairment charges, loss on warrants, and acquisition, restructuring and integration related costs.

Note (B): EBITDA and Adjusted EBITDA for the three months ended June 30, 2023, and for each of the prior four quarters includes non-cash, stock-based compensation expense of $2,648, $2,103, $2,028, $1,923 and $1,963 respectively.

Note (C): EBITDA and Adjusted EBITDA for the three months ended June 30, 2023, and for each of the prior four quarters includes foreign exchange gain (losses) of $(3,819), $2,348, $2,105, $(3,997) and $(1,881) respectively.

Non-GAAP Financial Measures

We disclose and discuss EBITDA and Adjusted EBITDA as non-GAAP financial measures in our public releases, including quarterly earnings releases, investor conference calls and other filings with the Securities and Exchange Commission. We define EBITDA as earnings (net income or loss) before interest and other debt costs, income tax expense, depreciation and amortization. Additionally, Adjusted EBITDA excludes impairment charges and merger and integration related costs. Our measures of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures presented by other companies. Other companies may calculate EBITDA and Adjusted EBITDA differently than we do, which may limit its usefulness as a comparative measure.

Because EBITDA and Adjusted EBITDA are not measures of financial performance calculated in accordance with GAAP, they should not be considered in isolation or as a substitute for operating income, net income or loss, cash provided (used) in operating activities, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP.

EBITDA and Adjusted EBITDA are widely used by investors and other users of our financial statements as a supplemental financial measure that, when viewed with our GAAP results and the accompanying reconciliations, we believe provide additional information that is useful to gain an understanding of the factors and trends affecting our ability to service debt, pay taxes and fund drydocking and survey costs and capital expenditures. We also believe the disclosure of EBITDA and Adjusted EBITDA helps investors meaningfully evaluate and compare our cash flow generating capacity from quarter-to-quarter and year-to-year.

EBITDA and Adjusted EBITDA are also financial metrics used by management (i) as a supplemental internal measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; (ii) to compare to the EBITDA and Adjusted EBITDA of other companies when evaluating potential acquisitions; and (iii) to assess our ability to service existing fixed charges and incur additional indebtedness.


TIDEWATER INC. UNAUDITED OTHER FLEET AND FINANCIAL DATA (In Thousands)

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2023			2023			2022			2022			2022

Net cash provided by (used in) operating activities (A)	$	9,741		$	12,794		$	45,340		$	28,113		$	(21,603	)

Cash interest expense		7,748			98			7,575			353			7,626
Interest income and other		(2,790	)		(130	)		(981	)		(581	)		(349	)
Additions to property and equipment		(8,849	)		(8,651	)		(4,929	)		(6,328	)		(4,151	)
Acquisitions		—			—			—			8,785			(28,486	)
Expansion capital		2,493			109			1,240			(8,441	)		28,678
Free cash flow before proceeds from asset sales		8,343			4,220			48,245			21,901			(18,285	)

Proceeds from asset sales		2,943			5,716			5,093			312			3,535

Free cash flow	$	11,286		$	9,936		$	53,338		$	22,213		$	(14,750	)

Free cash flow is a non-GAAP investment performance indicator which we believe provides useful information regarding the net cash generated by the Company before any payments to capital providers. Free cash flow is determined from net cash provided by (used in) operating activities adjusted for capital expenditures, excluding expansion capital, proceeds from asset sales, cash interest expense and interest income. Free cash flow is not defined by U.S. GAAP and is not a substitute for net cash provided by operating activities.

Note (A): Net cash provided by (used in) operating activities is affected by changes in our assets and liabilities and the amounts we pay in cash for our drydocks and vessel surveys as illustrated in the following table:

	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2023			2023			2022			2022			2022
Cash provided by (used in) changes in assets and liabilities, excluding drydock payments	$	(23,447	)	$	2,295		$	16,018		$	1,913		$	(27,697	)
Cash paid for deferred drydock and survey costs		(21,366	)		(31,325	)		(12,117	)		(12,820	)		(18,451	)
Total sources (uses) of cash for changes in assets and liabilities	$	(44,813	)	$	(29,030	)	$	3,901		$	(10,907	)	$	(46,148	)

View source version on businesswire.com: https://www.businesswire.com/news/home/20230804790940/en/

Contacts

Tidewater Inc.

West Gotcher

Vice President,

Finance and Investor Relations

+1.713.470.5285