HAMILTON, BERMUDA
-- (Marketwired)
-- 05/09/13
Teekay Corporation (NYSE:TK) -
Highlights
-- First quarter 2013 total cash flow from vessel operations of $193.0
million.
-- First quarter 2013 adjusted net loss attributable to stockholders of
Teekay of $11.7 million, or $0.17 per share (excluding specific items
which decreased GAAP net loss by $5.5 million, or $0.08 per share).
-- Completed sale of Voyageur Spirit FPSO unit to Teekay Offshore for
$540 million on May 2, 2013.
-- Cidade de Itajai FPSO unit achieved first oil and commenced nine-
year time-charter with Petrobras in mid-February 2013; Teekay
Parent's 50 percent ownership interest recently offered to Teekay
Offshore.
-- Teekay Offshore's first quarter common unit distribution increase of
2.5 percent moves Teekay Parent's general partnership incentive
distribution rights into the 50 percent tier.
-- Total consolidated liquidity of approximately $1.5 billion as at
March 31, 2013, pro forma for Teekay Offshore's equity offerings
completed in April 2013.
Teekay Corporation (Teekay or the Company) today reported an adjusted net loss attributable to stockholders of Teekay(1) of $11.7 million, or $0.17 per share, for the quarter ended March 31, 2013, compared to an adjusted net loss attributable to stockholders of Teekay of $20.8 million, or $0.30 per share, for the same period of the prior year. Adjusted net loss attributable to stockholders of Teekay excludes a number of specific items that had the net effect of decreasing GAAP net loss by $5.5 million, or $0.08 per share, for the three months ended March 31, 2013 and increasing GAAP net income by $21.9 million, or $0.32 per share, for the same period of the prior year, as detailed in Appendix A to this release. Including these items, the Company reported on a GAAP basis, net loss attributable to stockholders of Teekay of $6.1 million, or $0.09 per share, for the quarter ended March 31, 2013, compared to net income attributable to stockholders of Teekay of $1.1 million, or $0.02 per share, for the same period of the prior year. Net revenues(2) for the first quarter of 2013 were $424.7 million, compared to $462.5 million for the same period of the prior year.
On April 5, 2013, the Company declared a cash dividend on its common stock of $0.31625 per share for the quarter ended March 31, 2013. The cash dividend was paid on April 30, 2013 to all shareholders of record on April 16, 2013.
1. Adjusted net income (loss) attributable to stockholders of Teekay is a
non-GAAP financial measure. Please refer to Appendix A to this release
for a reconciliation of this non-GAAP measure as used in this release to
the most directly comparable financial measure under United States
generally accepted accounting principles (GAAP) and for information
about specific items affecting net income (loss) that are typically
excluded by securities analysts in their published estimates of the
Company's financial results.
2. Net revenues is a non-GAAP financial measure used by certain investors
to measure the financial performance of shipping companies. Please see
Appendix E to this release for a reconciliation of this non-GAAP measure
as used in this release to the most directly comparable financial
measure under GAAP.
"Since the start of 2013, we have continued to make steady progress on the execution of our existing project portfolio, and recently have achieved several important milestones," commented Peter Evensen, Teekay Corporation's President and Chief Executive Officer. "Most notably, following first oil in mid-April and commencement of the five-year firm period charter with E.ON, we completed the sale of the Voyageur Spirit FPSO to Teekay Offshore Partners on May 2nd for $540 million. Second, following the achievement of first oil on its nine-year firm period charter with Petrobras in mid-February, we have offered to sell our 50 percent interest in the Cidade de Itajai FPSO to Teekay Offshore Partners. The Conflicts Committee of Teekay Offshore is currently reviewing this offer and, if approved, we expect to complete this sale before the end of the second quarter. In addition, Teekay Offshore expects to take delivery of the first of four shuttle tanker newbuildings this week, which will operate under a 10-year firm period time-charter contract with the BG Group in Brazil."
"In light of the Voyageur Spirit FPSO acquisition, Teekay Offshore recently increased its first quarter common unit distribution by 2.5 percent, which increases the distributions Teekay Parent receives from Teekay Offshore common units and moves Teekay Parent's general partnership incentive distribution rights for Teekay Offshore into the 50 percent high splits," Mr. Evensen continued. "With Teekay Offshore's announced expectation of a further increase in its common unit quarterly distributions by a minimum of 2.5 percent before the end of 2013 to reflect the additional cash flows from the expected Cidade de Itajai FPSO acquisition and BG shuttle tanker newbuilding deliveries, Teekay Parent's cash flows are expected to grow further. In addition, proceeds from the completion of asset sales will further enhance Teekay Parent's financial strength and provide further progress towards the deleveraging of Teekay Parent's balance sheet and increasing liquidity."
Mr. Evensen added, "In addition to our existing growth projects, Teekay LNG Partners and Teekay Offshore Partners are also seeing increased new business development in their gas and offshore businesses, which if realized, will ultimately benefit Teekay Parent as our publicly-traded daughter entities grow their respective cash distributions. In December 2012, Teekay LNG Partners ordered two fuel-efficient LNG newbuilding carriers plus options and is currently bidding on several long-term contracts for these vessels. The offshore business is currently working on several front-end engineering and design, or FEED, studies for new FPSO newbuilding and FSO conversion projects that we believe will lead to future growth for Teekay Offshore Partners. Teekay Tankers also recently placed an order for four fuel-efficient Long-Range 2 product tanker newbuildings, plus options, at attractive prices, which are scheduled to deliver in late-2015 and early-2016 to coincide with an expected improving refined product and crude oil shipping market."
Operating Results
The following tables highlight certain financial information for each of Teekay's four publicly-listed entities: Teekay Offshore Partners L.P. (Teekay Offshore) (NYSE: TOO), Teekay LNG Partners L.P. (Teekay LNG) (NYSE: TGP), Teekay Tankers Ltd. (Teekay Tankers) (NYSE: TNK) and Teekay Parent (which excludes the results attributed to Teekay Offshore, Teekay LNG and Teekay Tankers). A brief description of each entity and an analysis of its respective financial results follow the tables below. Please also refer to the "Fleet List" section below and Appendix B to this release for further details.
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Three Months Ended March 31, 2013
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(unaudited)
Teekay Teekay
Offshore LNG Teekay
(in thousands of Partners Partners Tankers Teekay
U.S. dollars) LP LP Ltd. Parent
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Net revenues 201,196 96,716 42,040 122,218
Vessel operating
expense 79,115 25,316 23,054 59,979
Time-charter hire
expense 14,777 - 1,986 48,443
Depreciation and
amortization 45,349 24,143 11,864 21,138
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CFVO - Consolidated
(1)(2)(3) 94,053 65,570 13,199 (19,386)
CFVO - Equity
Investments
(4) - 41,999 - 254
CFVO - Total 94,053 107,569 13,199 (19,132)
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Three Months Ended March 31,
2013
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(unaudited)
Teekay
(in thousands of Consolidation Corporation
U.S. dollars) Adjustments Consolidated
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Net revenues (37,448) 424,722
Vessel operating
expense - 187,464
Time-charter hire
expense (37,754) 27,452
Depreciation and
amortization - 102,494
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CFVO - Consolidated
(1)(2)(3) (2,700) 150,736
CFVO - Equity
Investments
(4) - 42,253
CFVO - Total (2,700) 192,989
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Three Months Ended March 31, 2012
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(unaudited)
Teekay Teekay
Offshore LNG Teekay
(in thousands of Partners Partners Tankers Teekay
U.S. dollars) LP LP Ltd. Parent
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Net revenues 208,117 98,873 31,097 161,864
Vessel operating
expense 81,112 22,387 11,318 72,937
Time-charter hire
expense 13,617 - 1,661 66,183
Depreciation and
amortization 49,611 24,633 10,738 29,632
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CFVO - Consolidated
(1)(2)(3) 102,083 72,667 16,780 (6,564)
CFVO - Equity
Investments
(4) - 26,186 - (625)
CFVO - Total 102,083 98,853 16,780 (7,189)
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Three Months Ended March 31,
2012
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(unaudited)
Teekay
(in thousands of Consolidation Corporation
U.S. dollars) Adjustments Consolidated
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Net revenues (37,482) 462,469
Vessel operating
expense - 187,754
Time-charter hire
expense (37,482) 43,979
Depreciation and
amortization - 114,614
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CFVO - Consolidated
(1)(2)(3) (7,000) 177,966
CFVO - Equity
Investments
(4) - 25,561
CFVO - Total (7,000) 203,527
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1. 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 and losses on
the sale of vessels, adjustments for direct financing leases to a cash
basis, and unrealized gains and losses relating to derivatives, but
includes realized gains and losses on the settlement of foreign currency
forward contracts. CFVO - Consolidated represents CFVO from vessels that
are consolidated on the Company's financial statements. Cash flow from
vessel operations is a non-GAAP financial measure used by certain
investors to measure the financial performance of shipping companies.
Please refer to Appendix C and Appendix E of this release for a
reconciliation of this non-GAAP measure as used in this release to the
most directly comparable GAAP financial measure.
2. Excludes CFVO relating to assets acquired from Teekay Parent for the
periods prior to their acquisition by Teekay Offshore, Teekay LNG and
Teekay Tankers, respectively, as those results are included in the
historical results for Teekay Parent.
3. In addition to CFVO from directly owned vessels, Teekay Parent also
receives cash dividends and distributions from its daughter public
companies. For the three months ended March 31, 2013 and 2012, Teekay
Parent received daughter company dividends and distributions totaling
$38.9 million and $39.4 million, respectively. The dividends and
distributions 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 Appendix D to this release for further
details.
4. CFVO - Equity Investments represents the Company's proportionate share
of CFVO from its equity-accounted vessels and other investments. Please
refer to Appendix E of this release for a reconciliation of this non-
GAAP measure as used in this release to the most directly comparable
GAAP financial measure.
Teekay Offshore Partners L.P.
Teekay Offshore is an international provider of marine transportation, oil production and storage services to the offshore oil industry through its fleet of 36 shuttle tankers (including four chartered-in vessels and four newbuildings under construction), four floating, production, storage and offloading (FPSO) units, six floating storage and offtake (FSO) units (including one committed FSO conversion unit) and six conventional oil tankers, in which its interests range from 50 to 100 percent. Teekay Offshore also has the right to participate in certain other FPSO and vessel opportunities. Teekay Parent currently owns a 29.9 percent interest in Teekay Offshore (including the 2 percent sole general partner interest).
For the first quarter of 2013, Teekay Offshore increased its common unit quarterly distribution by 2.5 percent, or $0.0128 per unit, to $0.5253 per common unit. The cash distribution to be received by Teekay Parent based on its common unit ownership and general partnership interest in Teekay Offshore totaled $15.4 million for the first quarter of 2013, as detailed in Appendix D to this release. With the recent increase to Teekay Offshore's quarterly distribution, Teekay Parent's incentive distribution rights relating to its general partnership interest in Teekay Offshore has moved into the 50 percent tier.
Cash flow from vessel operations from Teekay Offshore decreased to $94.1 million in the first quarter of 2013, from $102.1 million in the same period of the prior year. The decrease was primarily due to the lay-up of the Navion Torinita and the Navion Clipper shuttle tankers upon expiration of their time-charter contracts in the second and fourth quarters of 2012, respectively, the sale of the Navion Savonita shuttle tanker in the fourth quarter of 2012, higher maintenance costs for the Petrojarl Varg FPSO unit and higher crewing and manning costs for the Petrojarl Varg and Piranema Spirit FPSO units.
In April 2013, Teekay Offshore issued approximately 2.1 million common units in an equity private placement to an institutional investor for proceeds of approximately $60 million (excluding the general partner's proportionate capital contribution). Teekay Offshore will use the proceeds from this issuance to partially finance the shipyard installments relating to four newbuilding shuttle tankers (the BG Shuttle Tankers) being constructed by Samsung Heavy Industries, for a total delivered cost of approximately $470 million. Following their respective scheduled deliveries in May through November 2013, the vessels will commence operations under 10-year time-charter contracts (which include certain contract extension and vessel purchase options) in Brazil with a subsidiary of BG Group plc.
In April 2013, Teekay Offshore completed a public offering of 6.0 million 7.25% Series A Cumulative Redeemable Preferred Units for gross proceeds of approximately $150 million. Teekay Offshore intends to use the net proceeds from this offering for general partnership purposes, including funding newbuilding installments, capital conversion projects and vessel acquisitions. Pending the application of these funds, Teekay Offshore has repaid a portion of its outstanding debt under two of its revolving credit facilities.
In April 2013, Teekay Offshore received an offer from Teekay Parent to acquire its 50 percent interest in the Cidade de Itajai (Itajai) FPSO unit at Teekay Parent's fully-built-up cost. The offer is currently being reviewed by Teekay Offshore's Conflicts Committee.
On May 2, 2013, Teekay Offshore completed the acquisition of the Voyageur Spirit FPSO unit from Teekay Parent for a purchase price of $540 million. The Voyageur Spirit FPSO operates on the Huntington Field in the North Sea under a five-year contract, plus up to 10 one-year extension options, with E.ON Ruhrgas UK E&P Limited. The acquisition was financed with a new $330 million debt facility secured by the unit, a portion of the proceeds from the public offering completed in September 2012 and a $40 million equity private placement of new Teekay Offshore common units to Teekay Parent which was completed concurrently with the acquisition.
In May 2013, Teekay Offshore entered into an agreement with Salamander Energy plc (Salamander) to provide an FSO unit for a ten-year charter contract, plus extension options, in offshore Thailand. Teekay Offshore intends to convert its 1993-built shuttle tanker, the Navion Clipper, into an FSO unit for an estimated fully-built-up cost of approximately $50 million. The unit is expected to commence its contract with Salamander in the third quarter of 2014.
Teekay LNG Partners L.P.
Teekay LNG provides liquefied natural gas (LNG), liquefied petroleum gas (LPG) and crude oil marine transportation services generally under long-term, fixed-rate charter contracts through its current fleet of 29 LNG carriers (including two newbuildings under construction), 24 LPG carriers (including eight newbuildings under construction) and 11 conventional tankers. Teekay LNG's interests in these vessels range from 33 to 100 percent. In addition, Teekay LNG, through its 50 percent owned LPG joint venture with Exmar NV, charters-in five LPG carriers. Teekay Parent currently owns a 37.5 percent interest in Teekay LNG (including the 2 percent sole general partner interest).
For the first quarter of 2013, Teekay LNG's quarterly distribution was $0.675 per common unit. The cash distribution to be received by Teekay Parent based on its common unit ownership and general partnership interest in Teekay LNG totaled $23.0 million for the first quarter of 2013, as detailed in Appendix D to this release.
Including cash flows from equity-accounted vessels, Teekay LNG's total cash flow from vessel operations increased to $107.6 million in the first quarter of 2013, from $98.9 million in the same period of the prior year. This increase was primarily due to the February 2012 acquisition of a 52 percent interest in six LNG carriers from A.P. Moller-Maersk (the MALT LNG Carriers) and the February 2013 acquisition of a 50 percent interest in the Exmar LPG BVBA joint venture, which owns and charters-in 25 LPG carriers, including eight newbuildings on order. This increase was partially offset by the scheduled drydocking of the Arctic Spirit LNG carrier in the first quarter of 2013, amendments to two of Teekay LNG's Suezmax tanker charter contracts, which temporarily reduces daily hire rate for each vessel from October 2012 until September 2014, and higher vessel operating expenditures due to preparations for the scheduled drydocking of the two Tangguh project LNG carriers during the second and fourth quarters in 2013.
In mid-February 2013, Teekay LNG entered into a joint venture with Belgium-based Exmar NV to own and charter-in LPG carriers with a primary focus on the mid-size gas carrier segment. The joint venture entity, called Exmar LPG BVBA includes 20 owned LPG carriers (including eight newbuildings scheduled for delivery between 2014 and 2016) and five chartered-in LPG carriers. In exchange for its 50 percent ownership in Exmar LPG BVBA, including newbuilding payments made prior to the establishment of the joint venture, Teekay LNG invested approximately $134 million of equity and assumed approximately $108 million of pro rata debt and lease obligations secured by certain vessels in the Exmar LPG BVBA fleet.
Teekay Tankers Ltd.
Teekay Tankers currently owns a fleet of 32 vessels, including 11 Aframax tankers, 10 Suezmax tankers, seven Long Range 2 (LR2) product tankers (including four newbuildings currently under construction), three MR product tankers, and a 50 percent interest in a Very Large Crude Carrier (VLCC) newbuilding which is scheduled to deliver in the second quarter of 2013. In addition, Teekay Tankers currently time-charters in two Aframax tankers and has invested $115 million in first-priority mortgage loans secured by two 2010-built VLCCs. Of the 28 vessels currently in operation, 14 are employed on fixed-rate time-charters, generally ranging from one to three years in initial duration, with the remaining vessels trading in Teekay's spot tanker pools. Based on its current ownership of Class A common stock and its ownership of 100 percent of the outstanding Teekay Tankers Class B stock, Teekay Parent currently owns a 25.1 percent economic interest in and has voting control of Teekay Tankers.
On May 8, 2013, Teekay Tankers declared under its new fixed dividend policy a first quarter 2013 dividend of $0.03 per share, which will be paid May 28, 2013 to all shareholders of record on May 20, 2013. Based on its ownership of Teekay Tankers Class A and Class B shares, the dividend to be paid to Teekay Parent will total $0.6 million for the first quarter of 2013.
In the first quarter of 2013, Teekay Tankers generated cash flow from vessel operations of $13.2 million, a decrease from $16.8 million in the same period of the prior year primarily due to lower time-charter equivalent rates earned by its spot fleet and the expiration of certain time-charter contracts, and the subsequent redeployment of certain vessels on time-charter contracts at lower rates, throughout the course of 2012 and early 2013, partially offset by the contribution from 13 vessels acquired from Teekay Corporation in June 2012.
In early April 2013, Teekay Tankers placed an order with STX Offshore & Shipbuilding Co., Ltd., (STX) of South Korea for four, fuel-efficient 113,000 dead-weight tonne (dwt) LR2 product tanker newbuildings for a fully-built-up cost of approximately $47 million each. The agreement with STX also includes non-contingent, fixed-price options to order up to 12 additional LR2 newbuildings during the subsequent 18 months. The initial four firm newbuilding orders are scheduled to deliver in late-2015 and early-2016.
Teekay Parent
In addition to its equity ownership interests in Teekay Offshore, Teekay LNG and Teekay Tankers, Teekay Parent directly owns several vessels, including four conventional Suezmax tankers and five FPSO units (including a 50 percent interest in the Itajai FPSO unit). In addition, Teekay Parent currently owns one newbuilding FPSO unit under construction. As at May 2, 2013, Teekay Parent also had nine chartered-in conventional tankers (including three Aframax tankers owned by Teekay Offshore), two chartered-in LNG carriers owned by Teekay LNG, and two chartered-in shuttle tankers and two chartered-in FSOs owned by Teekay Offshore.
For the first quarter of 2013, Teekay Parent generated negative cash flow from vessel operations of $19.1 million, compared to negative cash flow from vessel operations of $7.2 million in the same period of the prior year. The decrease in cash flow is due to the sale of the 13 conventional tankers to Teekay Tankers in June 2012, a $6.8 million termination fee paid for the early termination of the Poul Spirit time-charter contract with Teekay Offshore in March 2013 and restructuring charges during the quarter. This was partially offset by lower time-charter hire expense as a result of the redelivery of time-chartered in vessels over the course of the past year.
In February 2013, the Itajai FPSO unit, which is 50 percent owned by Teekay Parent, achieved first oil on the Bauna and Piracaba (previously named Tiro and Sidon) fields in the Santos Basin offshore Brazil and commenced operations under its nine-year time-charter contract (plus extension options) with Petroleo Brasileiro SA (Petrobras). The remaining 50 percent interest in the Itajai FPSO unit is owned by Brazil-based Odebrecht Oil & Gas S.A (a member of the Odebrecht group). In April 2013, Teekay Parent offered to sell its 50 percent interest in the Itajai FPSO unit to Teekay Offshore for its fully built-up cost.
Fleet List
The following table summarizes Teekay's consolidated fleet of 170 vessels as at May 2, 2013, including chartered-in vessels and vessels under construction but excluding vessels managed for third parties:
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Number of Vessels(1)
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Owned Chartered-in Newbuildings/
Vessels Vessels Conversions Total
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Teekay Parent
Fleet(2)(3)
Aframax Tankers (4) - 5 - 5
Suezmax Tankers 4 - - 4
MR Product Tanker - 1 - 1
FPSO Units 4 - 1 5
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Total Teekay Parent
Fleet 8 6 1 15
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Teekay Offshore
Fleet 43 4 5 52
Teekay LNG Fleet 54 5 10 69
Teekay Tankers Fleet 27 2 5 34
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Total Teekay
Consolidated Fleet 132 17 21 170
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1. Ownership interests in these vessels range from 33 percent to 100
percent. Excludes vessels managed on behalf of third parties.
2. Excludes two LNG carriers chartered-in from Teekay LNG.
3. Excludes two shuttle tankers and two FSOs chartered-in from Teekay
Offshore.
4. Excludes three Aframax tankers chartered-in from Teekay Offshore.
Liquidity and Capital Expenditures
As at March 31, 2013, the Company had consolidated liquidity of $1.3 billion (consisting of $479.6 million cash and cash equivalents and $857.4 million of undrawn revolving credit facilities), of which $368.8 million of liquidity (consisting of $188.8 million cash and cash equivalents and $180.0 million of undrawn revolving credit facilities) is attributable to Teekay Parent. Giving effect for the $60 million of proceeds from Teekay Offshore's common unit private placement and the $150 million of proceeds from Teekay Offshore's preferred unit offering completed in April 2013, Teekay had total consolidated liquidity of approximately $1.5 billion as at March 31, 2013. Giving effect for the sale of the Voyageur Spirit FPSO unit to Teekay Offshore in May 2013 (net of Teekay Offshore's $150 million prepayment to Teekay Parent in February 2013), Teekay Parent had total liquidity of approximately $488 million as at March 31, 2013.
The following table provides the Company's remaining capital commitments relating to its portion of acquisitions and newbuildings and related total financing completed as at March 31, 2013:
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Amount
Financed
(in millions) 2013 2014 2015 2016 Total to Date
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Teekay Offshore (1) $312 - - - $312 $170
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Teekay LNG(2) $12 $106 $93 $305 $516 $70
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Teekay Tankers (3) $34 $9 $85 $60 $188 $15
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Teekay Parent (4) $50 $343 - - $393 $119(5)
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Total Teekay Corporation Consolidated $408 $458 $178 $365 $1,409 $374(5)
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1. Includes capital expenditures related to four newbuilding shuttle
tankers.
2. Includes capital expenditures related to two newbuilding LNG carriers
and Teekay LNG's 50 percent interest in the eight newbuilding LPG
carriers being constructed for the Exmar LPG BVBA joint venture.
3. Includes remaining capital expenditures related to four newbuilding LR2
product tankers and Teekay Tankers' 50 percent interest in a newbuilding
VLCC through a joint venture with Wah Kwong Maritime Transport Holdings
Limited.
4. Includes remaining capital expenditures related to the Petrojarl Knarr
FPSO newbuilding and the upgrade and acquisition by Teekay Parent from
Sevan Marine ASA of the Voyageur Spirit FPSO unit (net of the then
existing $230 million debt facility which Teekay Parent subsequently
assumed as part of the Voyageur Spirit FPSO unit acquisition on May 2,
2013 and is accounted for on Teekay Parent's Balance Sheet as at March
31, 2013 as a variable interest entity).
5. Includes $100 million increase to the Voyageur Spirit FPSO debt
facility, which completed on May 2, 2013.
As indicated above, the Company had total capital expenditure commitments pertaining to its portion of acquisitions and newbuildings of approximately $1.4 billion as at March 31, 2013. The Company's pre-arranged financing as of March 31, 2013 of approximately $374 million primarily relates to its 2013 capital expenditure commitments. The Company is in the process of obtaining additional debt financing to fund its remaining capital expenditure commitments relating to: the last two shuttle tanker newbuildings, which are scheduled to deliver in the second half of 2013; the Petrojarl Knarr FPSO newbuilding, which is scheduled to deliver in the first half of 2014; the two LNG carrier newbuildings, which are scheduled to deliver in the first half of 2016; four of the eight LPG carrier newbuildings being constructed by the Exmar LPG BVBA joint venture, which are scheduled to deliver in 2015 and 2016; and four LR2 product tanker newbuildings, which are scheduled to deliver in early-2015 and late-2016.
Availability of 2012 Annual Report
Teekay Corporation filed its 2012 Annual Report on Form 20-F with the U.S. Securities and Exchange Commission (SEC) on April 29, 2013. Copies of this report are available on the Teekay Corporation website, under "SEC Filings", at www.teekay.com. Shareholders may request a printed copy of this Annual Report, including the complete audited financial statements, free of charge by contacting Teekay Corporation's Investor Relations.
Conference Call
The Company plans to host a conference call on Thursday, May 9, 2013 at 11:00 a.m. (ET) to discuss its results for the first quarter of 2013. 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) 820-0231 or (416) 640-5926, if outside North America,
and quoting conference ID code 7213677.
-- 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 Thursday, May 16, 2013. 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 7213677.
About Teekay
Teekay Corporation is an operational leader and project developer in the marine midstream space. Through its general partnership interests in two master limited partnerships, Teekay LNG Partners L.P. (NYSE:TGP) and Teekay Offshore Partners L.P. (NYSE:TOO), its controlling ownership of Teekay Tankers Ltd. (NYSE:TNK), and its fleet of directly-owned vessels, Teekay is responsible for managing and operating consolidated assets of over $11 billion, comprised of approximately 170 liquefied gas, offshore, and conventional tanker assets. With offices in 16 countries and approximately 6,400 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the world's leading oil and gas companies, and its reputation for safety, quality and innovation has earned it a position with its customers as The Marine Midstream Company.
Teekay's common stock is listed on the New York Stock Exchange where it trades under the symbol "TK".
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TEEKAY CORPORATION
SUMMARY CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands of U.S. dollars, except share and per share data)
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Three Months Ended
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March 31, December 31, March 31,
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2013 2012 2012
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(unaudited) (unaudited) (unaudited)
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REVENUES(1)(2) 451,037 523,242 501,106
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OPERATING EXPENSES
Voyage expenses (2) 26,315 30,796 38,637
Vessel operating expenses (1)(2)(3) 187,464 230,135 187,754
Time-charter hire expense 27,452 27,883 43,979
Depreciation and amortization 102,494 113,460 114,614
General and administrative (2)(3) 39,271 35,052 38,362
Loss on sale of vessels and equipment
/ asset impairments 3,197 428,792 (197)
Restructuring charges 2,054 2,121 -
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388,247 868,239 423,149
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Income (loss) from vessel operations 62,790 (344,997) 77,957
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OTHER ITEMS
Interest expense (2) (42,510) (40,956) (42,300)
Interest income (2) 1,018 1,794 2,046
Realized and unrealized (loss) gain
on derivative instruments (2) (13,789) 44,580 4,815
Equity income (4) 27,315 26,097 17,644
Income tax (expense) recovery (2,500) 13,028 3,568
Foreign exchange gain (loss) 2,191 (6,405) (15,824)
Other income (loss) - net 5,240 (1,690) 2,343
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Net income (loss) 39,755 (308,549) 50,249
Less: Net (income) loss attributable
to non-controlling interests (45,891) 214,838 (49,183)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net (loss) income attributable to
stockholders of Teekay Corporation (6,136) (93,711) 1,066
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(Loss) income per common share of
Teekay
- Basic ($0.09) ($1.35) $0.02
- Diluted ($0.09) ($1.35) $0.02
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Weighted-average number of common
shares outstanding
- Basic 69,888,279 69,589,200 68,855,860
- Diluted 69,888,279 69,589,200 70,146,586
----------------------------------------------------------------------------
----------------------------------------------------------------------------
1. The costs of business development and engineering studies relating to
North Sea FPSO and FSO projects that the Company is pursuing, are
substantially reimbursable from customers upon completion. As a result,
$2.8 million of revenues and $2.6 million of costs were recognized in
the first quarter of 2013 upon completion of one North Sea FPSO study.
In the fourth quarter of 2012, $26.3 million of revenues and $28.1
million of costs were recognized upon completion of one North Sea FPSO
study and two North Sea FSO studies.
2. Realized and unrealized gains and losses 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. The
realized gains (losses) relate to the amounts the Company actually
received or paid to settle such derivative instruments and the
unrealized gains (losses) relate to the change in fair value of such
derivative instruments, as detailed in the table below:
Three Months Ended
---------------------------------------
March 31, December 31, March 31,
---------------------------------------
2013 2012 2012
---------------------------------------
Realized (losses) gains relating to:
Interest rate swaps (30,352) (33,164) (30,416)
Foreign currency forward contracts 421 646 1,237
Bunkers, freight forward agreements
(FFAs) and other - - 11,452
---------------------------------------
(29,931) (32,518) (17,727)
---------------------------------------
Unrealized gains (losses) relating
to:
Interest rate swaps 19,204 76,095 17,135
Foreign currency forward contracts (3,062) 1,003 8,792
Bunkers, FFAs and other - - (3,385)
---------------------------------------
16,142 77,098 22,542
---------------------------------------
Total realized and unrealized
(losses) gains on non-designated
derivative instruments (13,789) 44,580 4,815
---------------------------------------
---------------------------------------
3. To more closely align the Company's presentation to many of its peers,
the cost of ship management activities of $19.6 million related to the
Company's fleet and to services provided to third parties for the three
months ended March 31, 2013 have been presented in vessel operating
expenses. Revenues of $6.5 million from ship management activities
provided to third parties have been presented in revenues. Prior to
2013, the Company included these amounts in general and administrative
expenses. All such costs incurred in comparative periods have been
reclassified from general and administrative expenses to vessel
operating expenses and revenues to conform to the presentation adopted
in the current period. The amounts reclassified from general and
administrative expenses to vessel operating expenses were $22.2 million
and $20.6 million for the three months ended December 31, 2012 and March
31, 2012, respectively. The amounts reclassified from general and
administrative expenses to revenues were $8.0 million and $5.5 million
for the three months ended December 31, 2012 and March 31, 2012,
respectively.
4. The Company's proportionate share of items within equity income as
identified in Appendix A of this release, is as detailed in the table
below. By excluding these items from equity income, 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.
Three Months Ended
---------------------------------------
March 31, December 31, March 31,
---------------------------------------
2013 2012 2012
---------------------------------------
Equity income 27,315 26,097 17,644
Proportionate share of unrealized
gains on derivative instruments (5,373) (10,676) (6,920)
Impairments of equity investments - 1,767 -
Other - 750 -
---------------------------------------
Equity income adjusted for items in
Appendix A 21,942 17,938 10,724
---------------------------------------
---------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TEEKAY CORPORATION
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
As at As at
March 31, December 31,
------------------------------
2013 2012
------------------------------
(unaudited) (unaudited)
------------------------------
ASSETS
Cash and cash equivalents 479,647 639,491
Other current assets 753,411 692,389
Restricted cash - current 39,709 39,390
Restricted cash - long-term 494,979 494,429
Vessels held for sale - 22,364
Vessels and equipment 6,572,749 6,628,383
Advances on newbuilding contracts/conversions 741,637 692,675
Derivative assets 144,665 180,250
Investment in equity accounted investees 642,598 480,043
Investment in direct financing leases 433,315 436,601
Investment in term loans 183,018 185,934
Other assets 258,959 217,401
Intangible assets 121,376 126,136
Goodwill 166,539 166,539
------------------------------
Total Assets 11,032,602 11,002,025
------------------------------
------------------------------
LIABILITIES AND EQUITY
Accounts payable and accrued liabilities 438,320 478,756
Current portion of long-term debt 837,323 867,683
Long-term debt 5,267,800 5,099,246
Long-term debt - variable interest entity(1) 230,324 230,359
Derivative liabilities 630,859 644,021
In process revenue contracts 222,871 241,591
Other long-term liabilities 224,076 220,080
Redeemable non-controlling interest 28,383 28,815
Equity:
Non-controlling interests 1,861,882 1,876,085
Stockholders of Teekay 1,290,764 1,315,389
----------------------------------------------------------------------------
Total Liabilities and Equity 11,032,602 11,002,025
----------------------------------------------------------------------------
----------------------------------------------------------------------------
1. For accounting purposes, the Voyageur Spirit FPSO unit is a variable
interest entity (VIE), whereby Teekay is the primary beneficiary. As a
result, the Company has consolidated the VIE as of December 1, 2011,
even though the Company did not acquire the Voyageur Spirit FPSO unit
until May 2, 2013, on which date the Company sold the Voyageur Spirit
FPSO unit to Teekay Offshore.
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TEEKAY CORPORATION
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three Months Ended
--------------------------
March 31
--------------------------
2013 2012
--------------------------
(unaudited) (unaudited)
--------------------------
Cash and cash equivalents provided by (used for)
OPERATING ACTIVITIES
----------------------------------------------------------------------------
Net operating cash flow (33,707) 56,837
----------------------------------------------------------------------------
FINANCING ACTIVITIES
Net proceeds from long-term debt 544,970 535,476
Scheduled repayments of long-term debt (122,736) (50,069)
Prepayments of long-term debt (250,000) (353,086)
Increase in restricted cash (1,370) (130,872)
Net proceeds from public offerings of Teekay
Tankers - 65,868
Cash dividends paid (22,971) (21,440)
Distribution from subsidiaries to non-controlling
interests (61,491) (57,420)
Other 4,312 3,772
----------------------------------------------------------------------------
Net financing cash flow 90,714 (7,771)
----------------------------------------------------------------------------
INVESTING ACTIVITIES
Expenditures for vessels and equipment (72,196) (46,711)
Proceeds from sale of vessels and equipment 22,364 195,342
Proceeds from sale of marketable securities - 1,063
Advances to joint ventures and joint venture
partners (36,195) (29,820)
Investment in joint ventures (134,109) (155,228)
Direct financing lease payments received and other 3,285 6,449
----------------------------------------------------------------------------
Net investing cash flow (216,851) (28,905)
----------------------------------------------------------------------------
(Decrease) increase in cash and cash equivalents (159,844) 20,161
Cash and cash equivalents, beginning of the period 639,491 692,127
----------------------------------------------------------------------------
Cash and cash equivalents, end of the period 479,647 712,288
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TEEKAY CORPORATION
APPENDIX A - SPECIFIC ITEMS AFFECTING NET INCOME (LOSS)
(in thousands of U.S. dollars, except per share data)
Set forth below is a reconciliation of the Company's unaudited adjusted net income (loss) attributable to stockholders of Teekay, a non-GAAP financial measure, to net loss attributable to stockholders of Teekay as determined in accordance with GAAP. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use this information to evaluate the Company's financial performance. The items below are also typically excluded by securities analysts in their published estimates of the Company's financial results. Adjusted net loss attributable to the stockholders of Teekay is intended to provide additional information and should not be considered a substitute for measures of performance prepared in accordance with GAAP.
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three Months Ended Three Months Ended
------------------------------------------------
March 31, 2013 March 31, 2012
------------------------------------------------
(unaudited) (unaudited)
$ Per $ Per
Share Share
$ (1) $ (1)
----------------------------------------------------------------------------
Net income - GAAP basis 39,755 50,249
Adjust for: Net income
attributable to
non-controlling interests (45,891) (49,183)
------------------------------------------------
Net (loss) income
attributable to
stockholders of Teekay (6,136) (0.09) 1,066 0.02
Add (subtract) specific
items affecting net loss:
Unrealized gains from
derivative instruments(2) (20,821) (0.30) (29,444) (0.42)
Foreign exchange loss(3) 333 - 14,831 0.21
Loss (gain) on sale of
assets/asset impairments(4) 3,197 0.05 (1,995) (0.03)
Restructuring charges(5) 2,054 0.03 - -
Realized gain upon
settlement of embedded
derivative - - (11,452) (0.16)
Non-recurring adjustments to
tax accruals - - (5,306) (0.08)
Other(6) 2,403 0.04 - -
Non-controlling interests'
share of items above(7) 7,287 0.10 11,498 0.16
----------------------------------------------------------------------------
Total adjustments (5,547) (0.08) (21,868) (0.32)
----------------------------------------------------------------------------
Adjusted net loss
attributable to
stockholders of Teekay (11,683) (0.17) (20,802) (0.30)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
1. Fully diluted per share amounts.
2. Reflects the unrealized gains or losses 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 (loss) from joint ventures, and the ineffective portion of
foreign currency forward contracts designated as hedges for accounting
purposes.
3. Foreign currency exchange gains and losses primarily relate to the
Company's debt denominated in Euros and Norwegian Kroner in addition to
the unrealized gains and losses on cross currency swaps used to hedge
the principal and interest on the Norwegian Kroner bonds. Nearly all of
the Company's foreign currency exchange gains and losses are unrealized.
4. Relates to impairment of an investment in a term loan during the three
months ended March 31, 2013, and gain on sale of equipment during the
three months ended March 31, 2012.
5. Restructuring charges primarily relate to the reorganization of the
Company's marine operations.
6. Other includes loss on bond repurchase and costs related to early
termination of a debt facility.
7. Items affecting net income (loss) 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 (loss) 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 listed 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 BALANCE SHEET AS AT MARCH 31, 2013
(in thousands of U.S. dollars)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(unaudited)
Teekay Teekay Teekay Teekay
Offshore LNG Tankers Parent
------------------------------------------------
ASSETS
Cash and cash equivalents 172,801 90,982 27,046 188,818
Other current assets 132,577 21,469 30,620 568,745
Restricted cash (current &
non-current) - 528,519 - 6,169
Vessels and equipment 2,287,334 1,901,373 876,762 1,507,280
Advances on newbuilding
contracts 139,628 38,829 - 563,180
Derivative assets 3,153 144,252 - (2,740)
Investment in equity
accounted investees 2 572,722 3,701 75,873
Investment in direct
financing leases 31,520 401,795 - -
Investment in term loans - - 118,060 64,958
Other assets 40,088 56,629 13,012 149,230
Advances to affiliates 163,202 3,273 27,248 (193,723)
Equity investment in
subsidiaries - - - 488,870
Intangibles and goodwill 141,343 142,155 - 4,417
------------------------------------------------
TOTAL ASSETS 3,111,648 3,901,998 1,096,449 3,421,077
------------------------------------------------
------------------------------------------------
LIABILITIES AND EQUITY
Accounts payable and accrued
liabilities 85,865 51,692 22,507 278,256
Advances from affiliates 41,852 16,551 7,273 (65,676)
Current portion of long-term
debt 250,414 249,357 25,246 312,306
Long-term debt 1,623,410 1,933,467 706,454 1,004,469
Long-term debt - variable
interest entity - - - 230,324
Derivative liabilities 261,631 282,938 32,000 54,290
In-process revenue contracts 110,895 5,607 - 106,369
Other long-term liabilities 25,643 105,664 5,158 87,611
Redeemable non-controlling
interest 28,383 - - -
Equity:
Non-controlling interests
(1) 46,344 41,736 - 122,363
Equity attributable to
stockholders/unitholders
of publicly-listed
entities 637,211 1,214,986 297,811 1,290,765
------------------------------------------------
TOTAL LIABILITIES AND EQUITY 3,111,648 3,901,998 1,096,449 3,421,077
------------------------------------------------
------------------------------------------------
NET DEBT(2) 1,701,023 1,563,323 704,654 1,352,112
------------------------------------------------
------------------------------------------------
------------------------------------------------------------
------------------------------------------------------------
TEEKAY CORPORATION
APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY BALANCE SHEET AS AT MARCH 31, 2013
(in thousands of U.S. dollars)
------------------------------------------------------------
------------------------------------------------------------
(unaudited)
Consolidation
Adjustments Total
--------------------------------
ASSETS
Cash and cash equivalents - 479,647
Other current assets - 753,411
Restricted cash (current &
non-current) - 534,688
Vessels and equipment - 6,572,749
Advances on newbuilding
contracts - 741,637
Derivative assets - 144,665
Investment in equity
accounted investees (9,700) 642,598
Investment in direct
financing leases - 433,315
Investment in term loans - 183,018
Other assets - 258,959
Advances to affiliates - -
Equity investment in
subsidiaries (488,870) -
Intangibles and goodwill - 287,915
--------------------------------
TOTAL ASSETS (498,570) 11,032,602
--------------------------------
--------------------------------
LIABILITIES AND EQUITY
Accounts payable and accrued
liabilities - 438,320
Advances from affiliates - -
Current portion of long-term
debt - 837,323
Long-term debt - 5,267,800
Long-term debt - variable
interest entity - 230,324
Derivative liabilities - 630,859
In-process revenue contracts - 222,871
Other long-term liabilities - 224,076
Redeemable non-controlling
interest - 28,383
Equity:
Non-controlling interests
(1) 1,651,439 1,861,882
Equity attributable to
stockholders/unitholders
of publicly-listed
entities (2,150,009) 1,290,764
--------------------------------
TOTAL LIABILITIES AND EQUITY (498,570) 11,032,602
--------------------------------
--------------------------------
NET DEBT(2) - 5,321,112
--------------------------------
--------------------------------
1. Non-controlling interests in the Teekay Offshore and Teekay LNG columns represent the joint venture partners' share of joint venture net assets. Non-controlling interest in the Consolidation Adjustments column represents the public's share of the net assets of Teekay's publicly-traded subsidiaries.
2. Net debt represents current and long-term debt less cash and, if applicable, current and long-term restricted cash.
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TEEKAY CORPORATION
APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY STATEMENT OF INCOME (LOSS) FOR THE THREE MONTHS ENDED MARCH 31, 2013
(in thousands of U.S. dollars)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(unaudited)
Teekay Teekay Teekay Teekay
Offshore LNG Tankers Parent
------------------------------------------------
Revenues 224,422 97,107 44,953 123,960
------------------------------------------------
Voyage expenses 23,226 391 2,913 1,742
Vessel operating expenses 79,115 25,316 23,054 59,979
Time-charter hire expense 14,777 - 1,986 48,443
Depreciation and
amortization 45,349 24,143 11,864 21,138
General and administrative 10,665 5,469 3,561 16,570
Loss on sale of vessels and
equipment/asset impairments
(1) 11,247 - 71 (8,121)
Restructuring charges 659 - - 1,395
------------------------------------------------
Total operating expenses 185,038 55,319 43,449 141,146
------------------------------------------------
Income (loss) from vessel
operations 39,384 41,788 1,504 (17,186)
------------------------------------------------
Interest income (11,680) (13,248) (2,511) (15,071)
Interest expense 195 515 4 304
Realized and unrealized loss
on derivative instruments (1,077) (8,285) (766) (3,661)
Income tax recovery
(expense) 234 (843) (401) (1,490)
Equity income - 26,424 - 891
Equity in earnings of
subsidiaries (2) - - - 30,872
Foreign exchange (loss) gain (3,640) 8,211 235 (2,615)
Other - net (1,446) 469 (18) 6,235
------------------------------------------------
Net income (loss) 21,970 55,031 (1,953) (1,721)
Less: Net (income) loss
attributable to non-
controlling interests (3) (1,777) (586) - (4,415)
------------------------------------------------
Net income (loss)
attributable to
stockholders/unitholders of
publicly-listed entities 20,193 54,445 (1,953) (6,136)
------------------------------------------------
------------------------------------------------
CFVO - Consolidated(4)(5) 94,053 65,570 13,199 (19,386)
CFVO - Equity Investments(6) - 41,999 - 254
CFVO - Total 94,053 107,569 13,199 (19,132)
------------------------------------------------
------------------------------------------------
------------------------------------------------------------
------------------------------------------------------------
TEEKAY CORPORATION
APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY STATEMENT OF INCOME (LOSS) FOR THE THREE MONTHS
ENDED MARCH 31, 2013
(in thousands of U.S. dollars)
------------------------------------------------------------
------------------------------------------------------------
(unaudited)
Consolidation
Adjustments Total
--------------------------------
Revenues (39,405) 451,037
--------------------------------
Voyage expenses (1,957) 26,315
Vessel operating expenses - 187,464
Time-charter hire expense (37,754) 27,452
Depreciation and
amortization - 102,494
General and administrative 3,006 39,271
Loss on sale of vessels and
equipment/asset impairments
(1) - 3,197
Restructuring charges - 2,054
--------------------------------
Total operating expenses (36,705) 388,247
--------------------------------
Income (loss) from vessel
operations (2,700) 62,790
--------------------------------
Interest income - (42,510)
Interest expense - 1,018
Realized and unrealized loss
on derivative instruments - (13,789)
Income tax recovery
(expense) - (2,500)
Equity income - 27,315
Equity in earnings of
subsidiaries (2) (30,872) -
Foreign exchange (loss) gain - 2,191
Other - net - 5,240
--------------------------------
Net income (loss) (33,572) 39,755
Less: Net (income) loss
attributable to non-
controlling interests (3) (39,113) (45,891)
--------------------------------
Net income (loss)
attributable to
stockholders/unitholders of
publicly-listed entities (72,685) (6,136)
--------------------------------
--------------------------------
CFVO - Consolidated(4)(5) (2,700) 150,736
CFVO - Equity Investments(6) - 42,253
CFVO - Total (2,700) 192,989
--------------------------------
--------------------------------
1. Teekay Offshore recognized an impairment charge of $11.2 million
relating to one conventional tanker during the three months ended March
31, 2013. The Company had already recognized the impairment charge
during the three months ended December 31, 2012 and therefore reversed
the impairment charge on consolidation. This is partially offset by
impairment on an investment in a term loan.
2. Teekay Corporation's proportionate share of the net earnings of its
publicly-traded subsidiaries.
3. Net (income) loss attributable to non-controlling interests in the
Teekay Offshore and Teekay LNG columns represent the joint venture
partners' share of the net income (loss) of the respective joint
ventures. Net (income) loss attributable to non-controlling interest in
the Consolidation Adjustments column represents the public's share of
the net income (loss) of Teekay's publicly-traded subsidiaries.
4. 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 and losses on
the sale of vessels, adjustments for direct financing leases to a cash
basis, and unrealized gains and losses relating to derivatives, but
includes realized gains and losses on the settlement of foreign currency
forward contracts. CFVO - Consolidated represents CFVO from vessels that
are consolidated on the Company's financial statements. Cash flow from
vessel operations is a non-GAAP financial measure used by certain
investors to measure the financial performance of shipping companies.
Please see Appendix C and Appendix E to this release for a
reconciliation of this non-GAAP measure as used in this release to the
most directly comparable GAAP financial measure.
5. 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 March
31, 2013, Teekay Parent received cash dividends and distributions from
these subsidiaries totaling $38.9 million. The dividends and
distributions 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 Appendix D to this release for further
details.
6. Cash flow from vessel operations (CFVO) - Equity Investments represents
the Company's proportionate share of CFVO from its equity accounted
vessels and other investments. Please see Appendix C and Appendix E 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 C - SUPPLEMENTAL FINANCIAL INFORMATION
TEEKAY PARENT SUMMARY OPERATING RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2013
(in thousands of U.S. dollars)
(unaudited)
Set forth below is a reconciliation of unaudited cash flow from vessel operations, a non-GAAP financial measure, to (loss) income from vessel operations as determined in accordance with GAAP, for Teekay Parent's primary operating segments. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use this information to evaluate Teekay Parent's financial performance. Disaggregated cash flow from vessel operations for Teekay Parent, as provided below, is intended to provide additional information and should not be considered a substitute for measures of performance prepared in accordance with GAAP.
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Owned In-Chartered Teekay
Conventional Conventional Parent
Tankers Tankers FPSOs Other (1) Total
---------------------------------------------------------
Revenues 4,158 19,434 83,244 17,124 123,960
Voyage expenses 195 1,543 - 4 1,742
Vessel operating
expenses 3,316 4,979 47,829 3,855 59,979
Time-charter hire
expense(2) - 31,660 8,331 8,452 48,443
Depreciation and
amortization 2,582 (233) 19,335 (546) 21,138
General and
administrative 612 1,260 6,303 8,395 16,570
Asset
impairments/net
loss on vessel
sales(3) - (11,247) - 3,126 (8,121)
Restructuring
charges - - - 1,395 1,395
---------------------------------------------------------
Total operating
expenses 6,705 27,962 81,798 24,681 141,146
---------------------------------------------------------
(Loss) income from
vessel operations (2,547) (8,528) 1,446 (7,557) (17,186)
---------------------------------------------------------
Reconciliation of (loss) income from vessel operations to cash flow from
vessel operations
(Loss) income from
vessel operations (2,547) (8,528) 1,446 (7,557) (17,186)
Depreciation and
amortization 2,582 (233) 19,335 (546) 21,138
Asset
impairments/net
loss on vessel
sales - (11,247) - 3,126 (8,121)
Amortization of in
process revenue
contracts and
other - - (15,300) - (15,300)
Unrealized losses
from the change in
fair value of
designated foreign
exchange forward
contracts 15 - - - 15
Realized losses
from the
settlements of
non-designated
foreign exchange
forward contracts 49 - 19 - 68
---------------------------------------------------------
CFVO -
Consolidated(4)(5) 99 (20,008) 5,500 (4,977) (19,386)
CFVO - Equity(6) 1,573 - (1,319) - 254
CFVO - Total 1,672 (20,008) 4,181 (4,977) (19,132)
---------------------------------------------------------
1. Results of two chartered-in LNG carriers owned by Teekay LNG and one
chartered-in FSO unit owned by Teekay Offshore and impairment on an
investment in a term loan.
2. Includes charter termination fee of $6.8 million paid to Teekay
Offshore.
3. Teekay Offshore recognized an impairment charge of $11.2 million
relating to one conventional tanker during the three months ended March
31, 2013. The Company had already recognized the impairment charge
during the three months ended December 31, 2012 and therefore reversed
the impairment charge on consolidation.
4. 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 and losses on
the sale of vessels, adjustments for direct financing leases to a cash
basis, and unrealized gains and losses relating to derivatives, but
includes realized gains and losses on the settlement of foreign currency
forward contracts. CFVO - Consolidated represents Teekay Parent's CFVO
from vessels that are consolidated on the Company's financial
statements. Cash flow from vessel operations is a non-GAAP financial
measure used by certain investors to measure the financial performance
of shipping companies. Please see Appendix E to this release for a
reconciliation of this non-GAAP measure as used in this release to the
most directly comparable GAAP financial measure.
5. 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 March
31, 2013, Teekay Parent received cash dividends and distributions from
these subsidiaries totaling $38.9 million. The dividends and
distributions 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 Appendix D to this release for further
details.
6. Cash flow from vessel operations (CFVO) - Equity Investments represents
Teekay Parent's proportionate share of CFVO from its equity accounted
vessels and other investments. Please see Appendix E 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 - SUPPLEMENTAL FINANCIAL INFORMATION
TEEKAY PARENT FREE CASH FLOW
(in thousands of U.S. dollars)
(unaudited)
Set forth below is an unaudited calculation of Teekay Parent free cash flow for the three months ended March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012, and March 31, 2012. The Company defines free cash flow, a non-GAAP financial measure, as cash flow from vessel operations attributed to its directly-owned and in-chartered assets, distributions received as a result of ownership interests in its publicly-traded subsidiaries (Teekay LNG, Teekay Offshore, and Teekay Tankers), net of interest expense and drydock expenditures in the respective period. For a reconciliation of Teekay Parent cash flow from vessel operations for the three months ended March 31, 2013 to the most directly comparable financial measure under GAAP, please refer to Appendix C to this release. For a reconciliation of Teekay Parent cash flow from vessel operations to the most directly comparable GAAP financial measure for the three months ended December 31, 2012, September 30, 2012, June 30, 2012, and March 31, 2012, please see Appendix E to this release. Teekay Parent free cash flow, as provided below, is intended to provide additional information and should not be considered a substitute for measures of performance prepared in accordance with GAAP.
Three Months Ended
--------------------------------------------------
March December September June March
31, 31, 30, 30, 31,
--------------------------------------------------
2013 2012 2012 2012 2012
--------------------------------------------------
Teekay Parent cash flow
from vessel operations
(1)
Owned Conventional
Tankers 99 (563) 381 13,339 15,347
In-Chartered Conventional
Tankers (2) (20,008) (11,601) (11,813) (28,138) (17,734)
FPSOs 5,500 16,705 (8,780) (3,205) (4,313)
Other (4,977) (4,657) (8,958) (6,441) 136
--------------------------------------------------
Total (19,386) (116) (29,170) (24,445) (6,564)
Daughter company
distributions to Teekay
Parent (3)
Common shares/units (4)
Teekay LNG Partners 17,016 17,016 17,016 17,016 17,016
Teekay Offshore Partners 11,747 11,461 11,461 11,461 11,461
Teekay Tankers Ltd. (5) 629 629 420 2,307 2,578
--------------------------------------------------
Total 29,392 29,106 28,897 30,784 31,055
General partner interest
Teekay LNG Partners 5,935 5,935 5,935 5,524 5,524
Teekay Offshore Partners 3,603 3,155 3,155 2,849 2,782
--------------------------------------------------
Total 9,538 9,090 9,090 8,373 8,306
Total Teekay Parent cash
flow before interest and
dry dock expenditures 19,544 38,080 8,817 14,712 32,797
Less:
Net interest expense (6) (18,574) (18,075) (16,284) (19,269) (19,504)
Dry dock expenditures - - - (129) (124)
--------------------------------------------------
TOTAL TEEKAY PARENT
FREE CASH FLOW 970 20,005 (7,467) (4,686) 13,169
----------------------------------------------------------------------------
----------------------------------------------------------------------------
1. Cash flow from vessel operations (CFVO) represents income from vessel
operations before depreciation and amortization expense, vessel/goodwill
write downs, gains or losses on the sale of vessels, adjustments for
direct financing leases on a cash basis, and unrealized gains and losses
relating to derivatives, but includes realized gains and losses on the
settlement of foreign currency forward contracts. CFVO is a non-GAAP
financial measure used by certain investors to measure the financial
performance of shipping companies. For further details for the quarter
ended March 31, 2013, including a reconciliation of this non-GAAP
financial measure to the most directly comparable GAAP financial
measure, please refer to Appendix C to this release; for a
reconciliation of this non-GAAP financial measure to the most directly
comparable GAAP financial measure for the quarters ended December 31,
2012, September 30, 2012, June 30, 2012, and March 31, 2012, please
refer to Appendix E to this release.
2. Includes charter termination fees of $6.8 million and $14.7 million paid
to Teekay Offshore during the three months ended March 31, 2013 and June
30, 2012, respectively.
3. Cash dividend and distribution cash flows are shown on an accrual basis
for dividends and distributions declared for the respective period.
4. 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
---------------------------------------------------
March December September
31, 31, 30,
---------------------------------------------------
2013 2012 2012
---------------------------------------------------
Teekay LNG Partners
Distribution per common
unit $ 0.675 $ 0.675 $ 0.675
Common units owned by
Teekay Parent 25,208,274 25,208,274 25,208,274
---------------------------------------------------
Total distribution $ 17,015,585 $ 17,015,585 $ 17,015,585
Teekay Offshore Partners
Distribution per common
unit $ 0.5253 $ 0.5125 $ 0.5125
Common units owned by
Teekay Parent 22,362,814 22,362,814 22,362,814
---------------------------------------------------
Total distribution $ 11,747,186 $ 11,460,942 $ 11,460,942
Teekay Tankers Ltd.
Dividend per share $ 0.03 $ 0.03 $ 0.02
Shares owned by Teekay
Parent (5) 20,976,530 20,976,530 20,976,530
---------------------------------------------------
Total dividend $ 629,296 $ 629,296 $ 419,531
Three Months Ended
----------------------------------
June March
30, 31,
----------------------------------
2012 2012
----------------------------------
Teekay LNG Partners
Distribution per common
unit $ 0.675 $ 0.675
Common units owned by
Teekay Parent 25,208,274 25,208,274
----------------------------------
Total distribution $ 17,015,585 $ 17,015,585
Teekay Offshore Partners
Distribution per common
unit $ 0.5125 $ 0.5125
Common units owned by
Teekay Parent 22,362,814 22,362,814
----------------------------------
Total distribution $ 11,460,942 $ 11,460,942
Teekay Tankers Ltd.
Dividend per share $ 0.11 $ 0.16
Shares owned by Teekay
Parent (5) 20,976,530 16,112,244
----------------------------------
Total dividend $ 2,307,418 $ 2,577,959
5. Includes Class A and Class B shareholdings.
6. Net interest expense is a non-GAAP financial measure that includes
realized gains and losses on interest rate swaps. Please see Appendix E
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 E - RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CASH FLOW FROM VESSEL OPERATIONS - CONSOLIDATED
(in thousands of U.S. dollars)
(unaudited)
Set forth below is an unaudited calculation of consolidated cash flow from vessel operations for the three months ended March 31, 2013, and March 31, 2012. Cash flow from vessel operations (CFVO), a non-GAAP financial measure, 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 unrealized gains or losses relating to derivatives but includes realized gains or losses on the settlement of foreign exchange forward contracts. CFVO is included because certain investors use this data to measure a company's financial performance. CFVO is not required by GAAP and should not be considered as an alternative to net income or any other indicator of the Company's performance required by GAAP.
Three Months Ended March 31, 2013
----------------------------------------------------
(unaudited)
----------------------------------------------------
Teekay
Offshore Teekay LNG Teekay Teekay
Partners LP Partners LP Tankers Ltd. Parent
----------------------------------------------------------------------------
Income (loss) from
vessel operations 39,384 41,788 1,504 (17,186)
Depreciation and
amortization 45,349 24,143 11,864 21,138
Amortization of in
process revenue
contracts and other (3,123) (1,945) (240) (15,300)
Unrealized losses from
the change in fair
value of designated
foreign exchange
forward contracts 59 - - 15
Realized gains from the
settlements of non
designated foreign
exchange forward
contracts 353 - - 68
Asset impairments / net
loss on vessel sales 11,247 - 71 (8,121)
Cash flow from time-
charter contracts, net
of revenue accounted
for as direct finance
leases 784 1,584 - -
----------------------------------------------------------------------------
Cash flow from vessel
operations -
Consolidated 94,053 65,570 13,199 (19,386)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three Months Ended March
31, 2013
--------------------------
(unaudited)
--------------------------
Teekay
Consolidation Corporation
Adjustments Consolidated
--------------------------------------------------
Income (loss) from
vessel operations (2,700) 62,790
Depreciation and
amortization - 102,494
Amortization of in
process revenue
contracts and other - (20,608)
Unrealized losses from
the change in fair
value of designated
foreign exchange
forward contracts - 74
Realized gains from the
settlements of non
designated foreign
exchange forward
contracts - 421
Asset impairments / net
loss on vessel sales - 3,197
Cash flow from time-
charter contracts, net
of revenue accounted
for as direct finance
leases - 2,368
--------------------------------------------------
Cash flow from vessel
operations -
Consolidated (2,700) 150,736
--------------------------------------------------
--------------------------------------------------
Three Months Ended March 31, 2012
----------------------------------------------------
(unaudited)
----------------------------------------------------
Teekay
Offshore
Partners LP Teekay LNG Teekay Teekay
(1) Partners LP Tankers Ltd. Parent
----------------------------------------------------------------------------
Income (loss) from
vessel operations 53,746 46,593 6,042 (21,424)
Depreciation and
amortization 49,611 24,633 10,738 29,632
Amortization of in
process revenue
contracts and other (3,093) - - (14,684)
Unrealized losses from
the change in fair
value of designated
foreign exchange
forward contracts (20) - - 38
Realized gains (losses)
from the settlements of
non-designated foreign
exchange forward
contracts/bunkers/FFAs 1,198 (32) - 71
Asset impairments / net
gain on vessel sales - - - (197)
Cash flow from time-
charter contracts, net
of revenue accounted
for as accounted for as
direct finance leases 641 1,473 - -
----------------------------------------------------------------------------
Cash flow from vessel
operations -
Consolidated(2) 102,083 72,667 16,780 (6,564)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three Months Ended March
31, 2012
--------------------------
(unaudited)
--------------------------
Teekay
Consolidation Corporation
Adjustments Consolidated
--------------------------------------------------
Income (loss) from
vessel operations (7,000) 77,957
Depreciation and
amortization - 114,614
Amortization of in
process revenue
contracts and other - (17,777)
Unrealized losses from
the change in fair
value of designated
foreign exchange
forward contracts - 18
Realized gains (losses)
from the settlements of
non-designated foreign
exchange forward
contracts/bunkers/FFAs - 1,237
Asset impairments / net
gain on vessel sales - (197)
Cash flow from time-
charter contracts, net
of revenue accounted
for as accounted for as
direct finance leases - 2,114
--------------------------------------------------
Cash flow from vessel
operations -
Consolidated(2) (7,000) 177,966
--------------------------------------------------
--------------------------------------------------
1. The results of Teekay Offshore include the results from both continuing
and discontinued operations.
2. Excludes the cash flow from vessel operations relating to assets
acquired from Teekay Parent for the periods prior to their acquisition
by Teekay Offshore, Teekay LNG and Teekay Tankers, respectively, as
those results are included in the historical results for Teekay Parent.
TEEKAY CORPORATION
APPENDIX E - RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CASH FLOW FROM VESSEL OPERATIONS - EQUITY ACCOUNTED VESSELS
(in thousands of U.S. dollars)
(unaudited)
Set forth below is an unaudited calculation of cash flow from vessel operations for equity accounted vessels for the three months ended March 31, 2013, and March 31, 2012. Cash flow from vessel operations (CFVO), a non-GAAP financial measure, 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 unrealized gains or losses relating to derivatives but includes realized gains or losses on the settlement of foreign exchange forward contracts. CFVO from equity accounted vessels represents the Company's proportionate share of CFVO from its equity accounted vessels and other investments. CFVO is included because certain investors use this data to measure a company's financial performance. CFVO is not required by GAAP and should not be considered as an alternative to net income or any other indicator of the Company's performance required by GAAP.
Three Months Ended Three Months Ended
March 31, 2013 March 31, 2012
------------------------------------------------
(unaudited) (unaudited)
------------------------------------------------
At Company's At Company's
100% Portion(1) 100% Portion(1)
----------------------------------------------------------------------------
Revenues 197,448 89,873 128,459 55,375
Depreciation and
amortization 19,920 10,133 18,900 8,436
Vessel and other operating
expenses 101,527 46,894 58,114 26,486
----------------------------------------------------------------------------
Income from vessel
operations of equity
accounted vessels 76,002 32,846 51,445 20,452
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Interest expense (13,060) (5,825) (21,616) (8,305)
Foreign exchange loss 649 267 (513) (197)
Realized and unrealized loss
on derivative instruments (5,176) (2,401) 13,710 5,122
Other income - net 5,696 2,428 659 571
----------------------------------------------------------------------------
Other items (11,892) (5,532) (7,760) (2,808)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net income / equity income
ofequity accounted vessels 64,110 27,315 43,685 17,644
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Income from vessel
operations of equity
accounted vessels 76,002 32,846 51,445 20,452
Depreciation and
amortization 19,920 10,133 18,900 8,436
Revenue accounted for as
direct financing lease (49,050) (17,946) (50,240) (18,363)
Cash flow from time-charter
contracts 55,926 20,441 56,938 20,810
Amortization of in-process
revenue contracts and other (6,200) (3,221) (13,645) (5,774)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash flow from vessel
operations
of equity accounted
vessels(2) 96,598 42,253 63,398 25,561
----------------------------------------------------------------------------
----------------------------------------------------------------------------
1. The Company's proportionate share of its equity accounted vessels and
other investments ranging from 33 percent to 50 percent.
2. CFVO from equity accounted vessels represents the Company's
proportionate share of CFVO from its equity accounted vessels and other
investments.
TEEKAY CORPORATION
APPENDIX E - RECONCILIATION OF NON-GAAP MEASURES
CASH FLOW FROM VESSEL OPERATIONS - TEEKAY PARENT
(in thousands of U.S. dollars)
(unaudited)
Set forth below is an unaudited calculation of Teekay Parent cash flow from vessel operations for the three months ended December 31, 2012, September 30, 2012, June 30, 2012, and March 31, 2012. Cash flow from vessel operations (CFVO), a non-GAAP financial measure, 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 unrealized gains or losses relating to derivatives but includes realized gains or losses on the settlement of foreign exchange forward contracts. CFVO is included because certain investors use this data to measure a company's financial performance. CFVO is not required by GAAP and should not be considered as an alternative to net income or any other indicator of the Company's performance required by GAAP.
Three Months Ended
December 31, 2012
-----------------------------------------------------------
(unaudited)
-----------------------------------------------------------
Owned In-chartered Teekay
Conventional Conventional Parent
Tankers Tankers FPSOs Other Total
----------------------------------------------------------------------------
Teekay Parent
(loss) income
from vessel
operations (2,723) (11,601) 13,024 (31,640) (32,941)
Depreciation and
amortization 2,598 - 19,375 (142) 21,831
Asset
impairments/net
loss on vessel
sales - - - 27,125 27,125
Amortization of
in process
revenue
contracts and
other - - (15,696) - (15,696)
Unrealized losses
from the change
in fair value of
designated
foreign exchange
forward
contracts 23 - - - 23
Realized gains
from the
settlements of
non-designated
foreign exchange
forward
contracts (461) - 3 - (458)
----------------------------------------------------------------------------
Cash flow from
vessel
operations -
Teekay Parent (563) (11,601) 16,705 (4,657) (116)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three Months Ended September 30, 2012
--------------------------------------------------------
(unaudited)
--------------------------------------------------------
Owned In-chartered Teekay
Conventional Conventional Parent
Tankers Tankers FPSOs Other Total
----------------------------------------------------------------------------
Teekay Parent (loss)
income from vessel
operations (1,120) (11,813) (13,775) (9,778) (36,486)
Depreciation and
amortization 2,570 - 19,132 820 22,522
Amortization of in
process revenue
contracts and other - - (14,208) - (14,208)
Unrealized losses
from the change in
fair value of
designated foreign
exchange forward
contracts 26 - 82 - 108
Realized gains from
the settlements of
non-designated
foreign exchange
forward contracts (1,095) - (11) - (1,106)
----------------------------------------------------------------------------
Cash flow from
vessel operations -
Teekay Parent 381 (11,813) (8,780) (8,958) (29,170)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three Months Ended June 30, 2012
--------------------------------------------------------
(unaudited)
--------------------------------------------------------
Owned In-chartered Teekay
Conventional Conventional Parent
Tankers Tankers FPSOs Other Total
----------------------------------------------------------------------------
Teekay Parent income
(loss) from vessel
operations 1,716 (28,138) (8,976) (6,441) (41,839)
Depreciation and
amortization 2,566 - 19,779 - 22,345
Amortization of in
process revenue
contracts and other (69) - (14,167) - (14,236)
Unrealized (gains)
losses from the
change in fair
value of designated
foreign exchange
forward contracts (51) - 103 - 52
Realized (losses)
gains from the
settlements of non-
designated foreign
exchange forward
contracts (340) - 56 - (284)
Dropdown predecessor
cash flow 9,517 - - - 9,517
----------------------------------------------------------------------------
Cash flow from
vessel operations -
Teekay Parent 13,339 (28,138) (3,205) (6,441) (24,445)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Three Months Ended March 31, 2012
--------------------------------------------------------
(unaudited)
--------------------------------------------------------
Owned In-chartered Teekay
Conventional Conventional Parent
Tankers Tankers FPSOs Other Total
----------------------------------------------------------------------------
Teekay Parent income
(loss) from vessel
operations 4,926 (17,734) (8,752) 136 (21,424)
Depreciation and
amortization 10,757 - 18,875 - 29,632
Net gain on vessel
sales (197) - - - (197)
Amortization of in
process
revenue contracts
and other (69) - (14,615) - (14,684)
Unrealized (gains)
losses from the
change in fair value
of designated
foreign exchange
forward contracts (36) - 74 - 38
Realized (losses)
gains from the
settlements of non-
designated foreign
exchange forward
contracts (34) - 105 - 71
----------------------------------------------------------------------------
Cash flow from
vessel operations -
Teekay Parent 15,347 (17,734) (4,313) 136 (6,564)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
TEEKAY CORPORATION
APPENDIX E - RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
NET REVENUES
(in thousands of U.S. dollars)
(unaudited)
Set forth below is an unaudited calculation of net revenues for the three months ended March 31, 2013, December 31, 2012 and March 31, 2012. Net revenues represents revenues less voyage expenses, which comprise all expenses relating to certain voyages, including bunker fuel expenses, port fees, canal tolls and brokerage commissions. Net revenues is included because certain investors use this data to measure the financial performance of shipping companies. Net revenues is not required by GAAP and should not be considered as an alternative to revenues or any other indicator of the Company's performance required by GAAP.
Three Months Ended March 31, 2013
------------------------------------------------------------
Teekay Offshore Teekay LNG Teekay Teekay
Partners LP Partners LP Tankers Ltd. Parent
---------------------------------------------------------------------------
Revenues 224,422 97,107 44,953 123,960
Voyage expense (23,226) (391) (2,913) (1,742)
---------------------------------------------------------------------------
Net revenues 201,196 96,716 42,040 122,218
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Three Months Ended March 31,
2013
------------------------------
Teekay
Consolidation Corporation
Adjustments Consolidated
---------------------------------------------
Revenues (39,405) 451,037
Voyage expense 1,957 (26,315)
---------------------------------------------
Net revenues (37,448) 424,722
---------------------------------------------
---------------------------------------------
Three Months Ended December 31, 2012
------------------------------------------------------------
Teekay Offshore Teekay LNG Teekay Teekay
Partners LP (1) Partners LP Tankers Ltd. Parent
---------------------------------------------------------------------------
Revenues 240,489 97,958 45,493 171,550
Voyage expense (28,178) (327) (1,017) (1,624)
---------------------------------------------------------------------------
Net revenues 212,311 97,631 44,476 169,926
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Three Months Ended December
31, 2012
------------------------------
Teekay
Consolidation Corporation
Adjustments Consolidated
---------------------------------------------
Revenues (32,248) 523,242
Voyage expense 350 (30,796)
---------------------------------------------
Net revenues (31,898) 492,446
---------------------------------------------
---------------------------------------------
Three Months Ended March 31, 2012
------------------------------------------------------------
Teekay Offshore Teekay LNG Teekay Teekay
Partners LP (1) Partners LP Tankers Ltd. Parent
---------------------------------------------------------------------------
Revenues 244,598 99,216 31,876 162,898
Voyage expense (36,481) (343) (779) (1,034)
---------------------------------------------------------------------------
Net revenues 208,117 98,873 31,097 161,864
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Three Months Ended March 31,
2012
------------------------------
Teekay
Consolidation Corporation
Adjustments Consolidated
---------------------------------------------
Revenues (37,482) 501,106
Voyage expense - (38,637)
---------------------------------------------
Net revenues (37,482) 462,469
---------------------------------------------
---------------------------------------------
1. The results of Teekay Offshore include the results from both continuing and discontinued operations.
TEEKAY CORPORATION
APPENDIX E - RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
NET INTEREST EXPENSE - TEEKAY PARENT
(in thousands of U.S. dollars)
(unaudited)
Set forth below is an unaudited calculation of Teekay Parent net interest expense for the three months ended March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012, and March 31, 2012. Net interest expense is a non-GAAP financial measure that includes realized gains and losses on interest rate swaps. Net interest expense is not required by accounting principles generally accepted in the United States and should not be considered as an alternative to interest expense or any other indicator of the Company's performance required by GAAP.
Three months ended
--------------------------------------------------
March December September June March
31, 31, 30, 30, 31,
2013 2012 2012 2012 2012
--------------------------------------------------
Interest expense (42,510) (40,956) (41,652) (42,707) (42,300)
Interest income 1,018 1,794 674 1,645 2,046
--------------------------------------------------
Net interest expense -
consolidated (41,492) (39,162) (40,978) (41,062) (40,254)
Less:
Non-Teekay Parent net
interest expense (26,725) (25,802) (28,392) (26,244) (25,661)
----------------------------------------------------------------------------
Interest expense net of
interest income - Teekay
Parent (14,767) (13,360) (12,586) (14,818) (14,593)
Add:
Teekay Parent realized
losses on interest rate
swaps (3,807) (4,715) (3,698) (4,451) (4,911)
----------------------------------------------------------------------------
Net interest expense -
Teekay Parent (18,574) (18,075) (16,284) (19,269) (19,504)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
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 estimated cost and timing of delivery of FPSO, shuttle tanker, FSO, LNG, LPG and LR2 product tanker newbuildings/conversions and the commencement of associated time-charter contracts and the effect on the Company's future operating results; the timing and certainty of securing long-term employment for the two LNG carrier newbuildings; the certainty of the four fuel-efficient LR2 product tanker newbuildings delivering into an improving product and crude oil shipping market; the timing, certainty and effect on Teekay Parent's balance sheet and liquidity from distribution growth from daughter subsidiaries and proceeds from sale of warehoused assets; the timing, amount and certainty of future increases of the daughter entities' cash distributions, including Teekay Offshore's expectation of a further increase in its cash distribution a by a minimum 2.5 percent before the end of 2013; the timing and certainty of Teekay Offshore's acquisition of a 50 percent interest in the Cidade de Itajai FPSO unit from Teekay Parent; the timing and certainty of the FEED studies for new FPSO newbuilding and FSO conversion projects and the impact on Teekay Offshore's future growth; and the Company's future capital expenditure commitments and the debt financings that the Company expects to obtain for its remaining unfinanced capital expenditure commitments.
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 tanker newbuilding orders or greater or less than anticipated rates of tanker 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 and FPSOs; decreases in oil production by or increased operating expenses for FPSO units; trends in prevailing charter rates for shuttle tanker and FPSO 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; the inability to negotiate new contracts on the two LNG carrier newbuildings; changes affecting the offshore tanker market; shipyard production or vessel conversion delays and cost overruns; delays in commencement of operations of FPSO and FSO units at designated fields; changes in the Company's expenses; the Company's future capital expenditure requirements and the inability to secure financing for such requirements; the inability of the Company to complete vessel sale transactions to its public-traded subsidiaries or to third parties; 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, 2012. 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:
Teekay Corporation
Kent Alekson
Investor Relations Enquiries
+1 (604) 844-6654
www.teekay.com
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