Teekay Corporation Reports Third Quarter 2015 Results
/EINPresswire.com/ -- HAMILTON, BERMUDA -- (Marketwired) -- 11/05/15 -- Highlights
-- Third quarter 2015 total Teekay Parent free cash flow of $59.8 million,
or $0.82 per share, up 21 percent from $49.5 million, or $0.68 per
share, in the second quarter of 2015.
-- Declared third quarter 2015 cash dividend of $0.55 per share.
-- On July 1, 2015, completed the dropdown sale of the Knarr FPSO to Teekay
Offshore for $1.26 billion resulting in a reduction in Teekay Parent's
net debt by approximately $0.9 billion.
Teekay Corporation (Teekay or the Company) (NYSE: TK) today reported financial and operating results for the third quarter of 2015. These results include the Company's three publicly-listed subsidiaries (Teekay Offshore Partners L.P. (Teekay Offshore) (NYSE: TOO), Teekay LNG Partners L.P. (Teekay LNG) (NYSE: TGP), and Teekay Tankers Ltd. (Teekay Tankers) (NYSE: TNK)) (collectively, the Daughter Entities), all of which are consolidated in the Company's financial statements, and all remaining subsidiaries of the Company are referred to in this release as Teekay Parent. Please refer to the third quarter earnings releases of Teekay LNG, Teekay Offshore and Teekay Tankers, which are available on the Company's website at www.teekay.com, for additional information on their respective results.
Summary Financial Information
----------------------------------------------------------------------------
Three Months Ended
(in thousands of U.S. dollars, September 30, June 30, September 30,
except per share amounts) 2015 2015 2014
----------------------------------------------------------------------------
TEEKAY PARENT
Teekay Parent GPCO Cash Flow (1) 53,797 41,155 39,709
Teekay Parent OPCO Cash Flow (1) 6,029 8,308 (24,843)
Total Teekay Parent Free Cash Flow
(1) 59,826 49,463 14,866
Total Teekay Parent Free Cash Flow
per share (1) 0.82 0.68 0.21
Declared Dividend per share 0.55 0.55 0.31625
----------------------------------------------------------------------------
TEEKAY CORPORATION CONSOLIDATED
Cash Flow from Vessel Operations
(CFVO) (1) 341,342 352,201 251,519
Adjusted Net Income (Loss) (1) 2,833 19,706 (12,579)
Adjusted Net Income (Loss) per
share (1) 0.04 0.27 (0.17)
GAAP Net (Loss) Income (12,235) 65,912 2,374
GAAP Net (Loss) Income per share (0.17) 0.91 0.03
----------------------------------------------------------------------------
(1) These are non-GAAP measures. Please refer to "Definitions and Non-GAAP
Measures" on Page 5 and the Appendices to this release for definitions
of these terms and reconciliations of these non-GAAP financial measures
as used in this release to the most directly comparable financial
measures under United States generally accepted accounting principles
(GAAP). Please refer to Page 7 for a summary of Teekay Parent Free Cash
Flow.
CEO Commentary
"Teekay Parent's free cash flow for the third quarter increased by 21 percent over the prior quarter to $59.8 million, or $0.82 per share, as our general partner and limited partner cash flows benefited from the dropdown of the Knarr FPSO and the associated four percent distribution increase declared by Teekay Offshore, resulting in a strong coverage ratio of 1.49x for the quarter," commented Peter Evensen, Teekay Corporation's President and Chief Executive Officer. "In addition, the Knarr dropdown allowed us to increase Teekay Parent's dividend by approximately 75 percent in the second quarter of 2015 and helped reduce Teekay Parent's net debt by approximately $900 million to $652 million at September 30, 2015, which further strengthens Teekay Parent's balance sheet."
"Teekay Parent's free cash flow is supported primarily by the stable and growing cash flows received from our two master limited partnerships," Mr. Evensen continued. "Teekay LNG's and Teekay Offshore's diversified portfolios of long-term fee-based contracts, which total approximately $11.3 billion and $8.2 billion, respectively, of forward revenues, are not directly-linked to commodity prices and service our customers' oil production and oil and gas transportation needs."
Summary of Results
Teekay Parent
Teekay Parent GPCO Cash Flow, which includes distributions and dividends received on an accrual basis from Teekay's publicly-listed subsidiaries less Teekay Parent's corporate general and administrative expenses, increased to $53.8 million for the quarter ended September 30, 2015, compared to $41.2 million for the quarter ended June 30, 2015. The distributions and dividends received from Teekay's publicly-listed subsidiaries for the quarter ended September 30, 2015 increased to $57.4 million, compared to $45.3 million for the quarter ended June 30, 2015, primarily due to Teekay Parent's $300 million investment in Teekay Offshore common units in connection with the sale of the Petrojarl Knarr (Knarr) FPSO to Teekay Offshore in early-July and Teekay Offshore's four percent cash distribution increase for the third quarter of 2015.
Teekay Parent OPCO Cash Flow, which includes cash flow attributable to assets directly-owned by, or chartered-in to, Teekay Parent, net of interest expense and drydock expenditures, decreased to $6.0 million for the quarter ended September 30, 2015, from $8.3 million for the quarter ended June 30, 2015. The decrease is primarily due to the sale of the Knarr FPSO to Teekay Offshore in early-July, partially offset by business development fees received from Teekay Offshore in connection with transactions involving the Knarr FPSO, Units for Maintenance and Safety (UMS) and towage vessels.
Total Teekay Parent Free Cash Flow, which is the total of GPCO and OPCO cash flows, was $59.8 million during the third quarter of 2015, compared to $49.5 million in the second quarter of 2015. Please refer to Page 7 of this release for additional information about Teekay Parent Free Cash Flow.
On October 5, 2015, the Company declared a cash dividend on its common stock of $0.55 per share for the quarter ended September 30, 2015. The cash dividend is payable on November 19, 2015 to all shareholders of record on October 16, 2015.
Teekay Corporation Consolidated
The Company's consolidated cash flow from vessel operations (CFVO) decreased to $341.3 million for the quarter ended September 30, 2015, compared to $352.2 million for the quarter ended June 30, 2015, primarily due to the scheduled maintenance of the Foinaven FPSO, a seasonal decrease in shuttle tanker utilization, lower towage fleet utilization, and lower average spot tanker rates.
The Company's consolidated adjusted net income decreased to $2.8 million, or $0.04 per share, during the quarter ended September 30, 2015, compared to $19.7 million, or $0.27 per share, for the quarter ended June 30, 2015.
On a GAAP basis, the Company's consolidated net loss was $12.2 million, or $0.17 per share, for the quarter ended September 30, 2015, compared to net income of $65.9 million, or $0.91 per share, for the quarter ended June 30, 2015.
Summary Results of Daughter Entities
Teekay Offshore Partners
Teekay Offshore's distributable cash flow during the quarter ended September 30, 2015 was relatively consistent with the quarter ended June 30, 2015. The higher contributions from the acquisition of the Knarr FPSO in early-July 2015 and the commencement of operations of the Arendal Spirit UMS in early-June 2015 and a full quarter contribution from the start-up of Teekay Offshore's shuttle tanker operations in the East Coast of Canada were offset by the scheduled expiration of certain shuttle tanker charter contracts, a temporary shut-down of the Piranema Spirit FPSO for unscheduled repairs completed during the quarter, a seasonal decrease in shuttle tanker utilization and lower towage fleet utilization. Please refer to Teekay Offshore's third quarter 2015 earnings release for additional information on the financial results for this entity.
Teekay LNG Partners
Teekay LNG's distributable cash flow decreased during the quarter ended September 30, 2015, compared to the quarter ended June 30, 2015, primarily due to the effect of a one-time cumulative catch-up payment by the charterer in the second quarter of 2015 upon finalization of the amended charter contracts for four liquefied natural gas (LNG) carriers in Teekay LNG's Angola LNG joint venture, higher off-hire for scheduled drydockings and lower revenue days for two 52-percent owned LNG carriers, the Methane Spirit and Magellan Spirit, currently operating on short-term contracts. Please refer to Teekay LNG's third quarter 2015 earnings release for additional information on the financial results for this entity.
Teekay Tankers
Teekay Tankers' free cash flow during the quarter ended September 30, 2015 was relatively consistent with the quarter ended June 30, 2015. Please refer to Teekay Tankers' third quarter 2015 earnings release for additional information on the financial results for this entity.
Recent Transactions
Teekay Parent
On July 1, 2015, Teekay Parent completed the dropdown sale of the Knarr FPSO to Teekay Offshore for a fully built-up cost of approximately $1.26 billion. Teekay Offshore fully financed the acquisition through the assumption of an existing $745 million long-term debt facility, the issuance of $300 million of common units to Teekay Parent, and the issuance of $250 million of convertible preferred units in a private placement to a group of institutional investors.
Teekay Offshore
On June 1, 2015, Teekay Offshore commenced 15-year contracts, plus extension options, with a group of companies (including Chevron Canada, Exxon Mobil, Husky Energy, Mosbachar Operating Ltd., Murphy Oil, Nalcor Energy, Statoil and Suncor Energy) to provide shuttle tanker services on the East Coast of Canada. These contracts were initially serviced by three third-party owned shuttle tankers that were operating on the East Coast of Canada, which were in-chartered by Teekay Offshore. One of these vessels was subsequently replaced by one of Teekay Offshore's existing shuttle tankers, the Navion Hispania, during the third quarter of 2015. In connection with entering the 15-year contracts for this project, in early-June 2015, Teekay Offshore entered into shipbuilding contracts to construct three Suezmax-size, dynamic positioning 2 (DP2) shuttle tanker newbuildings with a South Korean shipyard for a fully built-up cost of approximately $370 million, with an option to order one additional vessel should a fourth vessel be required. The three ordered vessels are expected to be delivered in the fourth quarter of 2017 through the first half of 2018.
Teekay LNG
In September 2015, Teekay LNG's Exmar LPG joint venture took delivery of the fifth of its 12 LPG carrier newbuildings, which recently commenced its 10-year charter contract with Potash Corporation.
Teekay Tankers
In early-August 2015, Teekay Tankers agreed to acquire 12 modern Suezmax tankers from Principal Maritime Tankers (Principal Maritime) for an aggregate purchase price of approximately $662 million. The 12 vessels have an average age of 5.5 years, which reduces the average age of Teekay Tankers' fleet by 1.2 years. Teekay Tankers took delivery of all 12 vessels between mid-August and mid-October 2015, with nine vessels trading in the spot tanker market and the remaining three vessels trading under short-term fixed rate contracts which expire between December 2015 and February 2016. Eight of the 12 vessels are expected to complete drydockings by early-December 2015, which include fuel-efficiency modifications.
In late-July 2015, Teekay Tankers acquired SPT Inc. (SPT) from Teekay Parent and I.M. Skaugen SE for a purchase price of $45.5 million. SPT provides a full suite of ship-to-ship (STS) transfer services in the oil, gas and dry bulk industries. SPT owns and operates a fleet of six STS support vessels and has one chartered-in Aframax tanker, the SPT Explorer.
Liquidity
As at September 30, 2015, Teekay Parent had total liquidity of $303.9 million and, on a consolidated basis, Teekay Corporation had total liquidity of approximately $1.0 billion (consisting of $789.7 million of cash and cash equivalents and $231.9 million of undrawn revolving credit facilities).
Definitions and Non-GAAP Measures
This release includes various financial measures that are non-GAAP financial measures as defined under the rules of the U.S. Securities and Exchange Commission. These non-GAAP financial measures, which include Cash Flow From Vessel Operations, Adjusted Net Income, Teekay Parent Free Cash Flow, and Net Interest Expense, are intended to provide additional information and should not be considered a substitute for measures of performance prepared in accordance with GAAP. In addition, these measures do not have standardized meanings, and may not be comparable to similar measures presented by other companies. The Company believes that certain investors use this information to evaluate the Company's financial performance.
Teekay Parent Financial Measures
Teekay Parent Free Cash Flow represents the sum of (a) distributions received as a result of ownership interests in its publicly-traded subsidiaries (Teekay LNG, Teekay Offshore, and Teekay Tankers) net of Teekay Parent's corporate general and administrative expenditures in the respective period (collectively, GPCO) plus (b) CFVO attributed to Teekay Parent's directly-owned and chartered-in assets, less net interest expense and drydock expenditures in the respective period (collectively, OPCO). Net interest expense includes interest expense, interest income and realized gains and losses on interest rate swaps. Please refer to Page 7 and Appendices B, C and D of this release for further details and reconciliations of these non-GAAP measures to the most directly comparable GAAP measures reflected in the Company's consolidated financial statements.
Consolidated Financial Measures
Cash flow from vessel operations (CFVO) represents income from vessel operations before depreciation and amortization expense, amortization of in-process revenue contracts, vessel write-downs, gains or losses on the sale of vessels and adjustments for direct financing leases to a cash basis, but includes realized gains or losses on the settlement of foreign currency forward contracts and a derivative charter contract. CFVO - Consolidated represents CFVO from vessels that are consolidated on the Company's financial statements. CFVO - Equity Investments represents the Company's proportionate share of CFVO from its equity-accounted vessels and other investments. CFVO is a non-GAAP financial measure used by certain investors to measure the financial performance of companies. Please refer to Appendices C and D of this release for reconciliations of these non-GAAP measures to the most directly comparable GAAP measures reflected in the Company's consolidated financial statements.
Adjusted net income excludes from net income items of income or loss that are typically excluded by securities analysts in their published estimates of the Company's financial results. The Company believes that certain investors use this information to evaluate the Company's financial performance. Please refer to Appendix A of this release for a reconciliation of this non-GAAP measure to the most directly comparable GAAP measure reflected in the Company's consolidated financial statements.
Conference Call
The Company plans to host a conference call on Friday, November 6, 2015 at 11:00 a.m. (ET) to discuss its results for the third quarter of 2015. An accompanying investor presentation will be available on Teekay's website at www.teekay.com prior to the start of the call. All shareholders and interested parties are invited to listen to the live conference call by choosing from the following options:
-- By dialing (800) 499-4035 or (416) 204-9269, if outside North America,
and quoting conference ID code 9463483.
-- By accessing the webcast, which will be available on Teekay's website at
www.teekay.com (the archive will remain on the website for a period of
30 days).
The conference call will be recorded and available until Friday, November 20, 2015. This recording can be accessed following the live call by dialing (888) 203-1112 or (647) 436-0148, if outside North America, and entering access code 9463483.
About Teekay
Teekay Corporation operates in the marine midstream space through its ownership of the general partners and a portion of the outstanding limited partner interests in Teekay LNG Partners L.P. (NYSE: TGP) and Teekay Offshore Partners L.P. (NYSE: TOO). The general partners own all of the outstanding incentive distribution rights. In addition, Teekay has a controlling ownership interest in Teekay Tankers Ltd. (NYSE: TNK) and directly owns a fleet of vessels. The combined Teekay entities manage and operate consolidated assets of over $13 billion, comprised of over 215 liquefied gas, offshore, and conventional tanker assets. With offices in 15 countries and approximately 7,100 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the world's leading oil and gas companies.
Teekay's common stock is listed on the New York Stock Exchange where it trades under the symbol "TK".
Teekay Parent Free Cash Flow
(in thousands of U.S. dollars, except share and per share data)
(unaudited)
Three Months Ended
-----------------------------------------------------------
September December September
30, June 30, March 31, 31, 30,
-----------------------------------------------------------
2015 2015 2015 2014 2014
-----------------------------------------------------------
TEEKAY PARENT
GPCO CASH FLOW
Daughter entities
distributions to
Teekay Parent
(1)
Limited Partner
interests (2)
Teekay LNG
Partners 17,646 17,646 17,646 17,646 17,439
Teekay Offshore
Partners 21,399 12,819 12,819 12,819 12,819
General partner
interests
Teekay LNG
Partners 8,761 8,684 8,653 8,650 7,883
Teekay Offshore
Partners 8,407 5,264 5,264 5,262 4,880
Other Dividends
Teekay Tankers
(2)(3) 1,212 881 881 881 756
----------------------------------------------------------------------------
Total Daughter
Distributions 57,425 45,294 45,263 45,258 43,777
----------------------------------------------------------------------------
Less:
Corporate
general and
administrative
expenses (3,628) (4,139) (6,889) (3,767) (4,068)
----------------------------------------------------------------------------
Total Parent GPCO
Cash Flow 53,797 41,155 38,374 41,491 39,709
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TEEKAY PARENT
OPCO CASH FLOW
Teekay Parent
cash flow from
vessel
operations (4)
Owned
Conventional
Tankers 2,422 4,628 4,291 1,549 277
In-Chartered
Conventional
Tankers (1,385) (1,501) (2,476) (5,067) (4,441)
FPSOs (4,071) 31,698 7,487 18,077 (10,027)
Other (5)(6) 22,765 2,326 1,381 7,679 5,021
----------------------------------------------------------------------------
Total (7) 19,731 37,151 10,683 22,238 (9,170)
Less:
Net interest
expense (8) (13,656) (28,635) (17,534) (15,056) (13,000)
Dry docking
expenditures (46) (208) - (3,652) (2,673)
----------------------------------------------------------------------------
Teekay Parent
OPCO Cash Flow 6,029 8,308 (6,851) 3,530 (24,843)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TOTAL TEEKAY
PARENT
FREE CASH FLOW 59,826 49,463 31,523 45,021 14,866
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total Teekay
Parent Free Cash
Flow per share 0.82 0.68 0.43 0.62 0.21
----------------------------------------------------------------------------
Declared dividend
per share 0.55 0.55 0.31625 0.31625 0.31625
----------------------------------------------------------------------------
Coverage Ratio
(9) 1.49x 1.24x 1.36x 1.96x 0.66x
----------------------------------------------------------------------------
Weighted-average
number of common
shares - Basic 72,706,285 72,697,121 72,549,068 72,498,974 72,393,072
----------------------------------------------------------------------------
(1) Cash dividend and distribution cash flows are shown on an accrual basis
for dividends and distributions declared for the respective period.
(2) Common share/unit dividend/distribution cash flows to Teekay Parent are
based on Teekay Parent's ownership on the ex-dividend date for the
respective publicly-traded subsidiary and period as follows:
Three Months Ended
----------------------------------------------------------
September June 30, March 31, December 31, September
30, 30,
----------------------------------------------------------
2015 2015 2015 2014 2014
----------------------------------------------------------
Teekay LNG
Partners
Distribution
per common
unit $ 0.7000 $ 0.7000 $ 0.7000 $ 0.7000 $ 0.6918
Common units
owned by
Teekay Parent 25,208,274 25,208,274 25,208,274 25,208,274 25,208,274
----------------------------------------------------------------------------
Total
distribution $17,645,792 $17,645,792 $17,645,792 $17,645,792 $17,439,084
Teekay Offshore
Partners
Distribution
per common
unit $ 0.5600 $ 0.5384 $ 0.5384 $ 0.5384 $ 0.5384
Common units
owned by
Teekay Parent 38,211,772 23,809,468 23,809,468 23,809,468 23,809,468
----------------------------------------------------------------------------
Total
distribution $21,398,592 $12,819,018 $12,819,018 $12,819,018 $12,819,018
Teekay Tankers
Ltd.
Dividend per
share $ 0.03 $ 0.03 $ 0.03 $ 0.03 $ 0.03
Shares owned by
Teekay Parent
(3) 40,387,231 29,364,141 29,364,141 29,364,141 25,197,475
----------------------------------------------------------------------------
Total dividend $ 1,211,617 $ 880,924 $ 880,924 $ 880,924 $ 755,924
(3) Includes Class A and Class B shareholdings.
(4) Please refer to Appendix C for additional financial information on
Teekay Parent's cash flow from vessel operations.
(5) Includes $0.7 million, $1.0 million $0.5 million and $0.8 million for
the three months ended September 30, 2015, June 30, 2015, December 31,
2014 and September 30, 2014, respectively, relating to 50 percent of the
CFVO from Teekay Parent's conventional tanker commercial management and
technical management operations (Tanker Operations). Teekay Tankers owns
the remaining 50% of the Tanker Operations.
(6) Includes $3.2 million of fees earned from managing vessel transactions
for Tanker Investment Ltd.'s (TIL) and $13.9 million of business
development fees received from Teekay Offshore in connection with the
Knarr FPSO, UMS and towage transactions for the three months ended
September 30, 2015.
(7) Excludes corporate general and administrative expenses relating to GPCO.
(8) Excludes realized losses on an interest rate swap related to the debt
facility secured by the Knarr FPSO unit up to commencement of operations
on March 9, 2015 of $3.3 million, $5.3 million and $4.1 million for the
three months ended March 31, 2015, December 31, 2014 and September 30,
2014, respectively. Please see Appendix D to this release for a
reconciliation of this non-GAAP measure as used in this release to the
most directly comparable GAAP financial measure.
(9) Coverage ratio is calculated by dividing the Teekay Parent free cash
flow per share by the declared dividend per share.
Teekay Corporation
Summary Consolidated Statements of (Loss) Income
(in thousands of U.S. dollars, except share and per share data)
Three Months Ended Nine Months Ended
------------------------------------------------------------
September June 30, September September September
30, 30, 30, 30,
------------------------------------------------------------
2015 2015 2014 2015 2014
------------------------------------------------------------
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
Revenues 611,617 592,797 490,183 1,750,276 1,448,931
Voyage expenses (29,935) (23,890) (34,183) (79,495) (102,634)
Vessel operating (608,986)
expenses (213,656) (201,370) (206,086) (599,229)
Time-charter (42,904)
hire expense (43,021) (30,333) (16,898) (98,281)
Depreciation and (313,666)
amortization (130,812) (128,199) (106,835) (371,715)
General and (106,408)
administrative
expenses (29,022) (33,730) (31,585) (100,706)
Asset (4,759)
impairments (1) - (500) (4,759) (15,996)
Loan loss 2,521
recoveries (2) - - - -
Gain on sale of 10,670
vessels and
equipment - - 1,217 1,643
Restructuring (3,060)
(charges)
reversals (3,994) 742 (2,665) (12,378)
----------------------------------------------------------------------------
Income from
vessel
operations 161,177 175,517 88,389 474,119 279,705
Interest expense (62,450) (62,388) (52,206) (176,184) (151,195)
Interest income 2,161 1,199 2,786 4,890 5,362
Realized and (128,371)
unrealized
(loss) gain on
derivative
instruments (3) (109,667) 63,752 (5,792) (129,301)
Equity income 102,697
(4) 14,995 39,901 39,932 75,645
Income tax (9,102)
expense (2,450) (752) (3,111) (2,207)
Foreign exchange 16,557
(loss) gain (20,218) (1,604) 19,497 (4,312)
Other - net (164) (389) (1,671) (178) 5,846
----------------------------------------------------------------------------
Net (loss) 121,499
income (16,616) 215,236 87,824 242,472
Less: Net loss (162,600)
(income)
attributable to
non-controlling
interests 4,381 (149,324) (85,450) (198,559)
----------------------------------------------------------------------------
Net (loss) (41,101)
income
attributable to
shareholders of
Teekay
Corporation (12,235) 65,912 2,374 43,913
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(Loss) income
per common
share of Teekay
- Basic ($0.17) $0.91 $0.03 $0.60 ($0.57)
- Diluted ($0.17) $0.90 $0.03 $0.60 ($0.57)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Weighted-average
number of
common shares
outstanding
- Basic 72,706,285 72,697,121 72,393,072 72,651,401 71,925,307
- Diluted 72,706,285 73,477,680 73,736,393 73,293,113 71,925,307
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) The Company recognized asset impairments of $0.5 million for the three
months ended June 30, 2015 relating to the expiration of one of Teekay
Offshore's UMS newbuilding options. The Company recognized asset
impairments of $15.5 million for the nine months ended September 30,
2015 related to the impairment of two shuttle tankers owned by Teekay
Offshore. The impairment for the shuttle tankers was the result of a
change in the operating plan for one shuttle tanker and the expected
sale of the other shuttle tanker. The Company recognized asset
impairments of $4.8 million for the three and nine months ended
September 30, 2014 related to the impairment of one 1990s-built shuttle
tanker owned by Teekay Offshore.
(2) The Company recovered $2.5 million during the nine months ended
September 30, 2014 related to a receivable for an FPSO front-end
engineering and design study (FEED) completed in 2013, which was
previously provided for.
(3) Realized and unrealized (losses) gains related to derivative instruments
that are not designated as hedges for accounting purposes are included
as a separate line item in the statements of (loss) income. The realized
(losses) gains relate to the amounts the Company actually received or
paid to settle such derivative instruments and the unrealized (losses)
gains relate to the change in fair value of such derivative instruments,
as detailed in the table below:
Three Months Ended Nine Months Ended
------------------------------------------------------------
September September September September
30, June 30, 30, 30, 30,
------------------------------------------------------------
2015 2015 2014 2015 2014
------------------------------------------------------------
Realized
(losses) gains
relating to:
Interest rate
swaps (26,858) (27,205) (32,106) (81,952) (92,352)
Termination of
interest rate
swap
agreements (10,876) - - (10,876) 1,000
Foreign
currency
forward
contracts (6,250) (4,232) (434) (15,910) (1,608)
------------------------------------------------------------
(43,984) (31,437) (32,540) (108,738) (92,960)
------------------------------------------------------------
Unrealized
(losses) gains
relating to:
Interest rate
swaps (60,682) 83,986 31,560 (20,356) (32,934)
Foreign
currency
forward
contracts (4,792) 9,386 (3,897) (1,735) (2,772)
Stock purchase
warrants (209) 1,817 (915) 1,528 295
------------------------------------------------------------
(65,683) 95,189 26,748 (20,563) (35,411)
------------------------------------------------------------
Total realized
and unrealized
(losses) gains
on non-
designated
derivative
instruments (109,667) 63,752 (5,792) (129,301) (128,371)
------------------------------------------------------------
------------------------------------------------------------
(4) The Company's proportionate share of items within equity income as
identified in Appendix A of this release is detailed in the table below.
By excluding these items from equity income, the Company believes the
resulting adjusted equity income is a normalized amount that can be used
to evaluate the financial performance of the Company's equity accounted
investments. Adjusted equity income is a non-GAAP measure.
Three Months Ended Nine Months Ended
------------------------------------------------------------
September September September September
30, June 30, 30, 30, 30,
------------------------------------------------------------
2015 2015 2014 2015 2014
------------------------------------------------------------
Equity income 14,995 39,901 39,932 75,645 102,697
Proportionate
share of
unrealized
losses (gains)
on derivative
instruments 13,568 (15,423) (6,113) 567 (3,214)
Dilution gain on
share issuance
by TIL - - - - (4,108)
Other(i) (8,700) (1,365) (8,117) (5,277) (16,923)
------------------------------------------------------------
Equity income
adjusted for
items in
Appendix A 19,863 23,113 25,702 70,935 78,452
------------------------------------------------------------
------------------------------------------------------------
(i) Includes the gain on sale of SPT subsidiaries to Teekay Tankers in the
ship-to-ship transfer joint venture for the three and nine months ended
September 30, 2015. Includes unrealized foreign exchange losses and
restructuring charges in Sevan Marine AS and cumulative cost pass-
through adjustments in Teekay LNG's Angola LNG project for the three
months ended June 30, 2015 and nine months ended September 30, 2015.
Includes net gains on sale of vessels in Teekay LNG's Exmar LPG BVBA
joint venture for the nine months ended September 30, 2014.
Teekay Corporation
Summary Consolidated Balance Sheets
(in thousands of U.S. dollars)
As at September As at December
30, As at June 30, 31
---------------------------------------------
2015 2015 2014
---------------------------------------------
(unaudited) (unaudited) (unaudited)
---------------------------------------------
ASSETS
Cash and cash equivalents -
Teekay Parent 303,889 275,048 232,330
Cash and cash equivalents -
Teekay LNG 154,173 106,991 159,639
Cash and cash equivalents -
Teekay Offshore 251,058 242,764 252,138
Cash and cash equivalents -
Teekay Tankers 80,579 83,082 162,797
Other current assets 466,754 481,697 473,872
Restricted cash - Teekay Parent 30,961 27,514 26,594
Restricted cash - Teekay LNG 70,196 55,222 45,997
Restricted cash - Teekay
Offshore 49,350 73,700 46,760
Restricted cash - Teekay
Tankers 915 - -
Assets held for sale(1) 15,092 5,000 -
Vessels and equipment - Teekay
Parent 764,135 2,115,665 809,184
Vessels and equipment - Teekay
LNG 1,696,281 1,712,341 1,751,583
Vessels and equipment - Teekay
Offshore 4,579,915 3,274,888 3,010,689
Vessels and equipment - Teekay
Tankers 1,589,297 1,035,311 828,291
Advances on newbuilding
contracts and conversion costs 726,265 629,266 1,706,500
Derivative assets 14,422 18,464 14,415
Investment in equity accounted
investees 876,383 890,351 873,421
Investment in direct financing
leases 690,437 693,532 704,953
Other assets 491,499 511,373 501,812
Intangible assets 117,474 89,228 94,666
Goodwill 168,571 168,571 168,571
----------------------------------------------------------------------------
Total assets 13,137,646 12,490,008 11,864,212
----------------------------------------------------------------------------
----------------------------------------------------------------------------
LIABILITIES AND EQUITY
Accounts payable and accrued
liabilities 470,687 444,967 480,049
Current portion of long-term
debt - Teekay Parent 346,768 226,714 196,926
Current portion of long-term
debt - Teekay LNG 230,677 215,985 161,657
Current portion of long-term
debt - Teekay Offshore 469,002 466,952 258,014
Current portion of long-term
debt - Teekay Tankers 477,013 144,453 41,959
Long-term debt - Teekay Parent 639,617 1,621,277 1,523,362
Long-term debt - Teekay LNG 1,824,410 1,805,778 1,826,017
Long-term debt - Teekay
Offshore 2,910,917 2,195,010 2,178,009
Long-term debt - Teekay Tankers 545,042 530,219 614,104
Derivative liabilities 761,396 627,217 626,139
In-process revenue contracts 157,969 161,798 173,412
Other long-term liabilities 394,961 404,332 383,089
Redeemable non-controlling
interest 260,298 10,481 12,842
Non-controlling
Equity: interests 2,745,323 2,520,361 2,290,305
Shareholders of Teekay 903,566 1,114,464 1,098,328
----------------------------------------------------------------------------
Total liabilities and equity 13,137,646 12,490,008 11,864,212
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net Debt - Teekay Parent(2) 651,535 1,545,429 1,461,364
Net Debt - Teekay LNG(2) 1,830,718 1,859,550 1,782,038
Net Debt - Teekay Offshore(2) 3,079,511 2,345,498 2,137,125
Net Debt - Teekay Tankers(2) 940,561 591,590 493,266
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) In connection with the expected sale of a conventional tanker by Teekay
Tankers, the vessel and related equipment of $10.1 million were
classified as "Assets held for sale" as at September 30, 2015. In
connection with the expected sale of an older shuttle tanker by Teekay
Offshore, the vessel and related equipment of $5.0 million were
classified as "Assets held for sale" as at September 30, 2015 and June
30, 2015.
(2) Net debt is a non-GAAP measure and represents current and long-term debt
less cash and cash equivalents and, if applicable, restricted cash.
Teekay Corporation
Summary Consolidated Statements of Cash Flows
(in thousands of U.S. dollars)
Nine Months Ended
--------------------------
September 30
--------------------------
2015 2014
--------------------------
(unaudited) (unaudited)
--------------------------
Cash and cash equivalents provided by (used for)
OPERATING ACTIVITIES
----------------------------------------------------------------------------
Net operating cash flow 633,555 291,163
----------------------------------------------------------------------------
FINANCING ACTIVITIES
Net proceeds from long-term debt 1,754,394 2,095,834
Prepayments of long-term debt (465,199) (786,890)
Scheduled repayments of long-term debt (542,855) (691,861)
Decrease in restricted cash (31,592) (565)
Net proceeds from equity issuances of subsidiaries 560,019 145,228
Equity contribution by joint venture partner 5,500 26,267
Issuance of common stock upon exercise of stock
options 1,164 53,544
Distribution from subsidiaries to non-controlling
interests (257,369) (245,852)
Cash dividends paid (85,896) (68,077)
Other (6,987) (4,658)
----------------------------------------------------------------------------
Net financing cash flow 931,179 522,970
----------------------------------------------------------------------------
INVESTING ACTIVITIES
Expenditures for vessels and equipment (1,571,520) (732,889)
Proceeds from sale of vessels and equipment 8,918 167,274
Purchase of SPT (46,961) -
Investment in equity accounted investments (34,528) (64,509)
Repayments from (advances to) equity accounted
investees 54,334 (88,483)
Investment in CVI Ocean Transportation II Inc. - (25,000)
Other 7,818 20,710
----------------------------------------------------------------------------
Net investing cash flow (1,581,939) (722,897)
----------------------------------------------------------------------------
(Decrease) increase in cash and cash equivalents (17,205) 91,236
Cash and cash equivalents, beginning of the period 806,904 614,660
----------------------------------------------------------------------------
Cash and cash equivalents, end of the period 789,699 705,896
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Teekay Corporation
Appendix A - Specific Items Affecting Net (Loss) Income
(in thousands of U.S. dollars, except per share data)
Three Months Ended
-------------------------------------------------------
September 30, June 30, 2015 September 30,
2015 2014
-------------------------------------------------------
(unaudited) (unaudited) (unaudited)
$ Per $ Per $ Per
$ Share(1) $ Share(1) $ Share(1)
----------------------------------------------------------------------------
Net (loss) income -
GAAP basis (16,616) 215,236 87,824
Adjust for: Net loss
(income)
attributable to
non-controlling
interests 4,381 (149,324) (85,450)
----------------------------------------------------------------------------
Net (loss) income
attributable to
shareholders of
Teekay (12,235) (0.17) 65,912 0.91 2,374 0.03
----------------------------------------------------------------------------
Add (subtract)
specific items
affecting net
income:
Unrealized losses
(gains) from
derivative
instruments (2) 80,311 1.10 (110,612) (1.52) (32,861) (0.45)
Foreign exchange
loss (gains)(3) 14,594 0.20 (2,167) (0.03) (20,378) (0.28)
Net gain on sale of
vessels(4) (8,700) (0.12) - - (9,334) (0.13)
Asset
impairments(5) - - 500 0.01 4,759 0.07
Restructuring
charges(6) 484 0.01 137 - 2,665 0.04
Pre-operational
costs (7) 426 0.01 857 0.01 4,446 0.06
Other(8) 4,042 0.06 (682) (0.01) 1,138 0.02
Non-controlling
interests' share
of items above(9) (76,089) (1.05) 65,761 0.90 34,612 0.47
----------------------------------------------------------------------------
Total adjustments 15,068 0.21 (46,206) (0.64) (14,953) (0.20)
----------------------------------------------------------------------------
Adjusted net income
(loss) attributable
to shareholders of
Teekay 2,833 0.04 19,706 0.27 (12,579) (0.17)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Basic per share amounts.
(2) Reflects the unrealized losses (gains) relating to the change in the
mark-to-market value of derivative instruments that are not designated
as hedges for accounting purposes, including those included in equity
income from joint ventures.
(3) Foreign currency exchange losses (gains) primarily relate to the
Company's debt denominated in Euros and Norwegian Kroner (NOK) in
addition to the unrealized losses (gains) on cross currency swaps used
to economically hedge the principal and interest on the NOK bonds.
Nearly all of the Company's foreign currency exchange gains and losses
are unrealized.
(4) Includes the Company's share of the gain on sale of the SPT subsidiaries
to Teekay Tankers in the ship-to-ship transfer joint venture, the gain
on sale of vessels in Teekay LNG's Exmar LPG BVBA joint venture and net
gain on the sale of an office building.
(5) Includes the impairment relating to the expiration of one of Teekay
Offshore's UMS newbuilding options for the three months ended June 30,
2015 and the impairment of a shuttle tanker for the three months ended
September 30, 2014.
(6) Restructuring charges primarily relate to crew redundancy costs.
(7) Includes realized losses on currency forward contracts related to
projects during their pre-operational phases for the three months ended
September 30, 2015 and June 30, 2015. Includes pre-operational costs and
realized losses on interest rate swaps for the Petrojarl Knarr FPSO for
the three months ended September 30, 2014.
(8) Other for the three months ended September 30, 2015 primarily relates to
a realized loss on termination of an interest rate swap and a net
deferred tax recovery related to the acquisition of the Knarr FPSO by
Teekay Offshore. Other for the three months ended June 30, 2015
primarily relates to a write-down of an investment and unrealized
foreign exchange and restructuring charges in Sevan Marine AS. Other for
the three months ended September 30, 2014 primarily relates to
contingent consideration and loss on bond repurchase.
(9) Items affecting net income include items from the Company's wholly-owned
subsidiaries, its consolidated non-wholly-owned subsidiaries and its
proportionate share of items from equity accounted for investments. The
specific items affecting net income are analyzed to determine whether
any of the amounts originated from a consolidated non-wholly-owned
subsidiary. Each amount that originates from a consolidated non-wholly-
owned subsidiary is multiplied by the non-controlling interests'
percentage share in this subsidiary to arrive at the non-controlling
interests' share of the amount. The amount identified as "Non-
controlling interests' share of items above" in the table above is the
cumulative amount of the non-controlling interests' proportionate share
of items listed in the table.
Teekay Corporation
Appendix B - Supplemental Financial Information
Summary Statement of Loss for the Three Months Ended September 30, 2015
(in thousands of U.S. dollars)
(unaudited)
Teekay Teekay Teekay Teekay Consolidation
Offshore LNG Tankers Parent Adjustments(1) Total
-------------------------------------------------------------
Revenues 314,054 98,415 125,369 98,500 (24,721) 611,617
Voyage expenses (28,166) (240) (2,588) (301) 1,360 (29,935)
Vessel
operating
expenses (95,172) (24,319) (33,574) (60,591) - (213,656)
Time-charter
hire expense (18,893) - (22,600) (27,104) 25,576 (43,021)
Depreciation
and
amortization (72,827) (22,473) (17,399) (18,113) - (130,812)
General and
administrative
expenses (27,321) (5,676) (4,138) 8,860 (747) (29,022)
Restructuring
charges (157) (3,510) (327) - - (3,994)
-------------------------------------------------------------
Income from
vessel
operations 71,518 42,197 44,743 1,251 1,468 161,177
Interest
expense (33,645) (11,175) (3,903) (16,750) 3,023 (62,450)
Interest income 153 617 28 4,386 (3,023) 2,161
Realized and
unrealized
losses
on derivative
instruments (77,102) (26,835) (1,031) (4,699) - (109,667)
Equity (loss)
income (7,052) 13,523 2,762 7,401 (1,639) 14,995
Equity in
earnings of
subsidiaries
(2) - - - 4,609 (4,609) -
Income tax
recovery
(expense) 5,465 (258) (1,341) (6,316) - (2,450)
Foreign
exchange
(loss) gain (10,257) (8,153) (45) (1,955) 192 (20,218)
Other - net (373) 393 - (162) (22) (164)
-------------------------------------------------------------
Net (loss)
income (51,293) 10,309 41,213 (12,235) (4,610) (16,616)
-------------------------------------------------------------
Less: Net
(income) loss
attributable
to non-
controlling
interests (3) (3,446) (2,811) - - 10,638 4,381
-------------------------------------------------------------
Net (loss)
income
attributable
to
shareholders/u
nitholders of
publicly-
listed
entities (54,739) 7,498 41,213 (12,235) 6,028 (12,235)
-------------------------------------------------------------
-------------------------------------------------------------
(1) Consolidation Adjustments column includes adjustments which eliminate
transactions between subsidiaries Teekay Offshore, Teekay LNG and Teekay
Tankers and Teekay Parent and results from Tanker Operations.
(2) Teekay Corporation's proportionate share of the net earnings of its
publicly-traded subsidiaries.
(3) Net income attributable to non-controlling interests in the Teekay
Offshore and Teekay LNG columns represent the joint venture partners'
share of the net income or loss of their respective joint ventures. Net
income attributable to non-controlling interest in the Consolidation
Adjustments column represents the public's share of the net income of
Teekay's publicly-traded subsidiaries.
Teekay Corporation
Appendix C - Supplemental Financial Information
Teekay Parent Summary Operating Results
For the three months ended September 30, 2015
(in thousands of U.S. dollars)
(unaudited)
Owned In-Chartered Teekay
Conventional Conventional Other Corporate Parent
Tankers Tankers FPSOs (1) G&A Total
------------------------------------------------------------
Revenues 3,338 12,898 61,568 20,696 - 98,500
Voyage expenses - (116) (9) (176) - (301)
Vessel operating
expenses (813) (3,726)(51,875) (4,177) - (60,591)
Time-charter
hire expense - (9,988) (7,335) (9,781) - (27,104)
Depreciation and
amortization (713) - (17,610) 210 - (18,113)
General and
administrative
expenses (103) (453) (2,751) 1,875 (3,628) (5,060)
Business
development
fees
from daughter - - - 13,920 - 13,920
------------------------------------------------------------
Income (loss)
from vessel
operations 1,709 (1,385)(18,012) 22,567 (3,628) 1,251
------------------------------------------------------------
Reconciliation of income (loss) from vessel operations to cash flow from
vessel operations
Income (loss)
from vessel
operations 1,709 (1,385)(18,012) 22,567 (3,628) 1,251
Depreciation and
amortization 713 - 17,610 (210) - 18,113
Amortization of
in-process
revenue
contracts and
other - - (1,483) (326) - (1,809)
Realized losses
from the
settlements of
non-designated
derivative
instruments - - (2,186) - - (2,186)
------------------------------------------------------------
CFVO -
Consolidated(2) 2,422 (1,385) (4,071) 22,031 (3,628) 15,369
CFVO - Equity(3) 1,655 - (2,177) 734 - 212
------------------------------------------------------------
CFVO - Total 4,077 (1,385) (6,248) 22,765 (3,628) 15,581
------------------------------------------------------------
------------------------------------------------------------
(1) Includes the results of two chartered-in LNG carriers owned by Teekay
LNG and two chartered-in FSO units owned by Teekay Offshore, fees of
$3.2 million earned from managing TIL's vessel transactions included in
revenues and $13.9 million of business development fees received from
Teekay Offshore in connection with the Knarr FPSO, UMS and towage
transactions.
(2) In addition to the CFVO generated by its directly owned and chartered-in
assets, Teekay Parent also receives cash dividends and distributions
from its publicly-traded subsidiaries. For the three months ended
September 30, 2015, Teekay Parent received cash dividends from these
subsidiaries totaling $57.4 million. The distributions and dividends
received by Teekay Parent include, among others, those made with respect
to its general partner interests in Teekay Offshore and Teekay LNG.
Please refer to Teekay Parent's free cash flow summary on Page 7 of this
release for further details.
(3) Please see Appendix D to this release for a reconciliation of this non-
GAAP measure as used in this release to the most directly comparable
GAAP financial measure.
Teekay Corporation
Appendix D - Reconciliation of Non-GAAP Financial Measures
Cash Flow from Vessel Operations - Consolidated
(in thousands of U.S. dollars)
(unaudited)
Three Months Ended
---------------------------------------------
September 30, June 30, September 30,
---------------------------------------------
2015 2015 2014
----------------------------------------------------------------------------
Income from vessel operations 161,177 175,517 88,389
Depreciation and amortization 130,812 128,199 106,835
Amortization of in process
revenue contracts and other (6,777) (13,570) (11,783)
Realized losses from the
settlements of non-designated (5,824) (4,019) (434)
derivative instruments
Asset impairments, net of gain
on sale of vessels and - 500 3,542
equipment
Cash flow from time-charter
contracts, net of revenue
accounted for as direct 6,620 5,676 5,527
finance leases
----------------------------------------------------------------------------
Cash flow from vessel
operations - Consolidated 286,008 292,303 192,076
Cash flow from vessel
operations - Equity Accounted 55,334 59,898 59,443
Vessels (see Appendix D)
----------------------------------------------------------------------------
Cash flow from vessel
operations - Total 341,342 352,201 251,519
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Teekay Corporation
Appendix D - Reconciliation of Non-GAAP Financial Measures
Cash Flow from Vessel Operations - Equity Accounted Vessels
(in thousands of U.S. dollars)
(unaudited)
Three Months Ended
------------------------------------------------------------
September 30, 2015 June 30, 2015 September 30, 2014
------------------------------------------------------------
At Company's At Company's At Company's
100% Portion(1) 100% Portion(1) 100% Portion(2)
----------------------------------------------------------------------------
Revenues 244,551 98,043 260,425 106,817 325,092 144,385
Vessel and other
operating
expenses (108,402) (42,720)(109,073) (46,119)(191,731) (84,074)
Depreciation and
amortization (38,840) (16,378) (36,284) (15,971) (35,993) (16,212)
Gain on sale of
vessels 16,822 8,410 - - 16,234 8,117
----------------------------------------------------------------------------
Income from
vessel
operations of
equity
accounted
vessels 114,131 47,355 115,068 44,727 113,602 52,216
Interest expense (30,715) (12,539) (27,273) (11,122) (25,758) (11,102)
Realized and
unrealized
(loss) gain on
derivative
instruments (43,485) (17,874) 22,497 9,483 526 260
Other - net (173) 86 (2,405) (958) 133 214
----------------------------------------------------------------------------
Net income of
equity
accounted
vessels 39,758 17,028 107,887 42,130 88,503 41,588
Pro forma equity
loss from
Tanker
Operations - (2,033) - (2,229) - (1,656)
----------------------------------------------------------------------------
Equity income of
equity
accounted
vessels 39,758 14,995 107,887 39,901 88,503 39,932
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Income from
vessel
operations of
equity
accounted
vessels 114,131 47,355 115,068 44,727 113,602 52,216
Depreciation and
amortization 38,840 16,378 36,284 15,971 35,993 16,212
Gain on sale of
vessels (16,822) (8,410) - - (16,234) (8,117)
Cash flow from
time-charter
contracts net
of revenue
accounted for
as direct
finance lease 8,551 3,102 8,296 3,010 7,520 2,719
Amortization of
in-process
revenue
contracts and
other (3,176) (1,623) (3,719) (1,894) (4,047) (2,057)
----------------------------------------------------------------------------
Cash flow from
vessel
operations of
equity
accounted
vessels(3) 141,524 56,802 155,929 61,814 136,834 60,973
Pro forma CFVO
from
Tanker
Operations(4) - (1,468) - (1,916) - (1,530)
----------------------------------------------------------------------------
Cash flow from
vessel
operations of
equity
accounted
vessels(3) 141,524 55,334 155,929 59,898 136,834 59,443
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) The Company's proportionate share of its equity accounted vessels and
other investments ranges from 16 percent to 52 percent.
(2) The Company's proportionate share of its equity accounted vessels and
other investments ranges from 13 percent to 52 percent.
(3) CFVO from equity accounted vessels represents the Company's
proportionate share of CFVO from its equity accounted vessels and other
investments.
(4) Pro forma CFVO from Tanker Operations represents the Company's 100
percent CFVO from Tanker Operations as Teekay Parent and Teekay Tankers
each account for their 50 percent interest in Tanker Operations as an
equity-accounted investment. Upon consolidation of Teekay Tankers into
Teekay, the results of Tanker Operations are accounted for on a
consolidated basis.
Teekay Corporation
Appendix D - Reconciliation of Non-GAAP Financial Measures
Cash Flow from Vessel Operations - Teekay Parent
(in thousands of U.S. dollars)
(unaudited)
Three Months Ended June 30, 2015
-------------------------------------------------------------
(unaudited)
-------------------------------------------------------------
Owned In-chartered Teekay
Conventional Conventional Corporate Parent
Tankers Tankers FPSOs Other G&A Total
----------------------------------------------------------------------------
Teekay Parent
income (loss)
from vessel
operations 3,915 (1,501) 8,677 1,480 (4,139) 8,432
Depreciation
and
amortization 713 - 35,298 (112) - 35,899
Amortization of
in-process
revenue
contracts and
other - - (10,619) - - (10,619)
Realized losses
from the
settlements of
non-designated
foreign
currency
derivative
instruments - - (1,658) - - (1,658)
----------------------------------------------------------------------------
Cash flow from
vessel
operations -
Teekay Parent 4,628 (1,501) 31,698 1,368 (4,139) 32,054
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three Months Ended March 31, 2015
------------------------------------------------------------
(unaudited)
------------------------------------------------------------
Owned In-chartered Teekay
Conventional Conventional Corporate Parent
Tankers Tankers FPSOs Other G&A Total
----------------------------------------------------------------------------
Teekay Parent
income (loss)
from vessel
operations 3,578 (2,476) (8,139) 937 (6,889)(12,989)
Depreciation and
amortization 713 - 21,259 (113) - 21,859
Amortization of
in-process
revenue
contracts and
other - - (3,457) 570 - (2,887)
Realized losses
from the
settlements of
non-designated
foreign
currency
derivative
instruments - - (2,176) - - (2,176)
----------------------------------------------------------------------------
Cash flow from
vessel
operations -
Teekay Parent 4,291 (2,476) (7,487) 1,394 (6,889) 3,807
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three Months Ended December 31, 2014
------------------------------------------------------------
(unaudited)
------------------------------------------------------------
Owned In-chartered Teekay
Conventional Conventional Corporate Parent
Tankers Tankers FPSOs Other G&A Total
----------------------------------------------------------------------------
Teekay Parent
income (loss)
from vessel
operations 836 (5,067) 4,381 7,272 (3,767) 3,655
Depreciation and
amortization 713 - 20,854 (113) - 21,454
Loss on sale of
vessels and
equipment - - 282 - - 282
Amortization of
in-process
revenue
contracts and
other - - (5,943) - - (5,943)
Realized losses
from the
settlements of
non-designated
foreign
currency
derivative
instruments - - (1,497) - - (1,497)
----------------------------------------------------------------------------
Cash flow from
vessel
operations -
Teekay Parent 1,549 (5,067) 18,077 7,159 (3,767) 17,951
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three Months Ended September 30, 2014
------------------------------------------------------------
(unaudited)
------------------------------------------------------------
Owned In-chartered Teekay
Conventional Conventional Corporate Parent
Tankers Tankers FPSOs Other G&A Total
----------------------------------------------------------------------------
Teekay Parent
(loss) income
from vessel
operations (447) (4,441) (23,208)12,083 (4,068)(20,081)
Depreciation and
amortization 713 - 21,145 (542) - 21,316
Gain on sale of
vessels and
equipment - - (1,217)(7,285) - (8,802)
Amortization of
in-process
revenue
contracts and
other - - (6,580) - - (6,580)
Realized gains
(losses) from
the settlements
of non-
designated
foreign
currency
derivative
instruments 11 - (167) - - (156)
----------------------------------------------------------------------------
Cash flow from
vessel
operations -
Teekay Parent 277 (4,441) (10,027) 4,256 (4,068)(14,003)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Teekay Corporation
Appendix D - Reconciliation of Non-GAAP Financial Measures
Net Interest Expense - Teekay Parent
(in thousands of U.S. dollars)
(unaudited)
Three Months Ended
--------------------------------------------------------
September March December September
30, June 30, 31, 31, 30,
--------------------------------------------------------
2015 2015 2015 2014 2014
--------------------------------------------------------
Interest expense (62,450) (62,388) (51,346) (57,334) (52,206)
Interest income 2,161 1,199 1,530 1,465 2,786
----------------------------------------------------------------------------
Net interest expense
- consolidated (60,289) (61,189) (49,816) (55,869) (49,420)
Less:
Non-Teekay Parent
net interest
expense (47,925) (38,215) (34,753) (42,279) (37,944)
----------------------------------------------------------------------------
Net interest expense
- consolidated (12,364) (22,974) (15,063) (13,590) (11,476)
Add:
Teekay Parent
realized losses on
interest rate swaps
(1) (1,292) (5,661) (2,471) (1,466) (1,524)
----------------------------------------------------------------------------
Net interest expense
- Teekay Parent (13,656) (28,635) (17,534) (15,056) (13,000)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Realized losses on interest rate swaps exclude realized losses of $3.3
million, $5.3 million and $4.1 million for the three months ended March
31, 2015, December 31, 2014 and September 30, 2014, respectively, on the
interest rate swap related to the debt facility secured by the Knarr
FPSO unit up to commencement of operations on March 9, 2015.
Forward Looking Statements
This release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management's current views with respect to certain future events and performance, including statements regarding: the stability and growth of Teekay Parent free cash flow; the stability and growth of Teekay LNG and Teekay Offshore's cash flows; Teekay LNG and Teekay Offshore's expected future revenues; the total cost and timing for the delivery of newbuilding projects and timing of commencement of associated time-charter contracts; and vessel drydocks, including the timing and the number of vessels to be drydocked. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: changes in production of, or demand for oil, petroleum products, LNG and LPG, either generally or in particular regions; greater or less than anticipated levels of newbuilding orders or greater or less than anticipated rates of vessel scrapping; changes in trading patterns significantly affecting overall vessel tonnage requirements; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations; changes in the typical seasonal variations in tanker charter rates; changes in the offshore production of oil or demand for shuttle tankers, FSOs, FPSOs, UMS, and towage vessels; changes in oil production and the impact on the Company's tankers and offshore units; fluctuations in global oil prices; trends in prevailing charter rates for the Company's vessels and offshore unit contract renewals; the potential for early termination of long-term contracts and inability of the Company to renew or replace long-term contracts or complete existing contract negotiations; delays in commencement of operations of FPSO and FSO units at designated fields; changes in the Company's expenses; the Company and its publicly-traded subsidiaries' future capital expenditure requirements and the inability to secure financing for such requirements; the amount of future cash distributions by the Company's daughter entities to the Company; failure of the respective Board of Directors of the general partners of Teekay Offshore and Teekay LNG to approve future cash distribution increases; conditions in the United States capital markets; and other factors discussed in Teekay's filings from time to time with the SEC, including its Report on Form 20-F for the fiscal year ended December 31, 2014 and Form 6-K for the quarter ended June 30, 2015. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.
Contacts:
For Investor Relations enquiries contact:
Ryan Hamilton
Tel: +1 (604) 844-6654
Website: www.teekay.com
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
