Teekay Corporation Reports First Quarter Results
(Thomson Reuters ONE) -
HAMILTON, BERMUDA--(Marketwired - May 9, 2013) - 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.
Three Months Ended March 31, 2013
(unaudited)
Teekay Teekay
(in thousands Offshore LNG Teekay Teekay
of U.S. Partners Partners Tankers Teekay Consolidation Corporation
dollars) LP LP Ltd. Parent Adjustments Consolidated
Net revenues 201,196 96,716 42,040 122,218 (37,448) 424,722
Vessel
operating
expense 79,115 25,316 23,054 59,979 - 187,464
Time-charter
hire expense 14,777 - 1,986 48,443 (37,754) 27,452
Depreciation
and
amortization 45,349 24,143 11,864 21,138 - 102,494
CFVO -
Consolidated
(1)(2)(3) 94,053 65,570 13,199 (19,386) (2,700) 150,736
CFVO - Equity
Investments
(4) - 41,999 - 254 - 42,253
CFVO - Total 94,053 107,569 13,199 (19,132) (2,700) 192,989
Three Months Ended March 31, 2012
(unaudited)
Teekay Teekay
(in thousands Offshore LNG Teekay Teekay
of U.S. Partners Partners Tankers Teekay Consolidation Corporation
dollars) LP LP Ltd. Parent Adjustments Consolidated
Net revenues 208,117 98,873 31,097 161,864 (37,482) 462,469
Vessel
operating
expense 81,112 22,387 11,318 72,937 - 187,754
Time-charter
hire expense 13,617 - 1,661 66,183 (37,482) 43,979
Depreciation
and
amortization 49,611 24,633 10,738 29,632 - 114,614
CFVO -
Consolidated
(1)(2)(3) 102,083 72,667 16,780 (6,564) (7,000) 177,966
CFVO - Equity
Investments
(4) - 26,186 - (625) - 25,561
CFVO - Total 102,083 98,853 16,780 (7,189) (7,000) 203,527
(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 Baúna 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:
Number of Vessels(1)
Owned Chartered-in Newbuildings/
Vessels Vessels Conversions Total
Teekay Parent Fleet(2)(3)
Aframax Tankers (4) - 5 - 5
Suezmax Tankers 4 - - 4
MR Product Tanker - 1 - 1
FPSO Units 4 - 1 5
Total Teekay Parent Fleet 8 6 1 15
Teekay Offshore Fleet 43 4 5 52
Teekay LNG Fleet 54 5 10 69
Teekay Tankers Fleet 27 2 5 34
Total Teekay Consolidated
Fleet 132 17 21 170
(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:
Amount
Financed
(in millions) 2013 2014 2015 2016 Total to Date
Teekay Offshore (1) $312 - - - $312 $170
Teekay LNG(2) $12 $106 $93 $305 $516 $70
Teekay Tankers (3) $34 $9 $85 $60 $188 $15
Teekay Parent (4) $50 $343 - - $393 $119(5)
Total Teekay Corporation Consolidated $408 $458 $178 $365 $1,409 $374(5)
(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".
TEEKAY CORPORATION
SUMMARY CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands of U.S. dollars, except share and per share data)
Three Months Ended
March 31, December 31, March 31,
2013 2012 2012
(unaudited) (unaudited) (unaudited)
REVENUES(1)(2) 451,037 523,242 501,106
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 -
388,247 868,239 423,149
Income (loss) from vessel operations 62,790 (344,997) 77,957
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
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 Three Months
Ended 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 Consolidation
Offshore LNG Tankers Parent Adjustments Total
ASSETS
Cash and cash equivalents 172,801 90,982 27,046 188,818 - 479,647
Other current assets 132,577 21,469 30,620 568,745 - 753,411
Restricted cash (current &
non-current) - 528,519 - 6,169 - 534,688
Vessels and equipment 2,287,334 1,901,373 876,762 1,507,280 - 6,572,749
Advances on newbuilding
contracts 139,628 38,829 - 563,180 - 741,637
Derivative assets 3,153 144,252 - (2,740) - 144,665
Investment in equity
accounted investees 2 572,722 3,701 75,873 (9,700) 642,598
Investment in direct
financing leases 31,520 401,795 - - - 433,315
Investment in term loans - - 118,060 64,958 - 183,018
Other assets 40,088 56,629 13,012 149,230 - 258,959
Advances to affiliates 163,202 3,273 27,248 (193,723) - -
Equity investment in
subsidiaries - - - 488,870 (488,870) -
Intangibles and goodwill 141,343 142,155 - 4,417 - 287,915
TOTAL ASSETS 3,111,648 3,901,998 1,096,449 3,421,077 (498,570) 11,032,602
LIABILITIES AND EQUITY
Accounts payable and
accrued liabilities 85,865 51,692 22,507 278,256 - 438,320
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 - 837,323
Long-term debt 1,623,410 1,933,467 706,454 1,004,469 - 5,267,800
Long-term debt - variable
interest entity - - - 230,324 - 230,324
Derivative liabilities 261,631 282,938 32,000 54,290 - 630,859
In-process revenue
contracts 110,895 5,607 - 106,369 - 222,871
Other long-term
liabilities 25,643 105,664 5,158 87,611 - 224,076
Redeemable non-controlling
interest 28,383 - - - - 28,383
Equity:
Non-controlling
interests (1) 46,344 41,736 - 122,363 1,651,439 1,861,882
Equity attributable to
stockholders/unitholders
of publicly-listed
entities 637,211 1,214,986 297,811 1,290,765 (2,150,009) 1,290,764
TOTAL LIABILITIES AND
EQUITY 3,111,648 3,901,998 1,096,449 3,421,077 (498,570) 11,032,602
NET DEBT(2) 1,701,023 1,563,323 704,654 1,352,112 - 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 Consolidation
Offshore LNG Tankers Parent Adjustments Total
Revenues 224,422 97,107 44,953 123,960 (39,405) 451,037
Voyage expenses 23,226 391 2,913 1,742 (1,957) 26,315
Vessel operating
expenses 79,115 25,316 23,054 59,979 - 187,464
Time-charter hire
expense 14,777 - 1,986 48,443 (37,754) 27,452
Depreciation and
amortization 45,349 24,143 11,864 21,138 - 102,494
General and
administrative 10,665 5,469 3,561 16,570 3,006 39,271
Loss on sale of vessels
and equipment/asset
impairments (1) 11,247 - 71 (8,121) - 3,197
Restructuring charges 659 - - 1,395 - 2,054
Total operating expenses 185,038 55,319 43,449 141,146 (36,705) 388,247
Income (loss) from
vessel operations 39,384 41,788 1,504 (17,186) (2,700) 62,790
Interest income (11,680) (13,248) (2,511) (15,071) - (42,510)
Interest expense 195 515 4 304 - 1,018
Realized and unrealized
loss on derivative
instruments (1,077) (8,285) (766) (3,661) - (13,789)
Income tax recovery
(expense) 234 (843) (401) (1,490) - (2,500)
Equity income - 26,424 - 891 - 27,315
Equity in earnings of
subsidiaries (2) - - - 30,872 (30,872) -
Foreign exchange (loss)
gain (3,640) 8,211 235 (2,615) - 2,191
Other - net (1,446) 469 (18) 6,235 - 5,240
Net income (loss) 21,970 55,031 (1,953) (1,721) (33,572) 39,755
Less: Net (income) loss
attributable to non-
controlling interests
(3) (1,777) (586) - (4,415) (39,113) (45,891)
Net income (loss)
attributable to
stockholders/unitholders
of publicly-listed
entities 20,193 54,445 (1,953) (6,136) (72,685) (6,136)
CFVO -
Consolidated(4)(5) 94,053 65,570 13,199 (19,386) (2,700) 150,736
CFVO - Equity
Investments(6) - 41,999 - 254 - 42,253
CFVO - Total 94,053 107,569 13,199 (19,132) (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 no
Unternehmensinformation / Kurzprofil:
Datum: 09.05.2013 - 19:04 Uhr
Sprache: Deutsch
News-ID 258379
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contact information:
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