HOS » Topics » Outlook

This excerpt taken from the HOS 10-Q filed May 11, 2009.

Outlook

Generally, the continued weakness in the overall economy and lack of liquidity in the credit markets are affecting the spending patterns of our customers and are likely to continue to soften demand for our services. The extent of such weakened demand and how long it may last is not known. In addition, lack of liquidity and low oil and natural gas prices may impact the continued viability of projects contemplated by our customers. Moreover, the construction of deepwater drilling rigs, which are a demand driver for our Upstream segment, may be cancelled or delayed in the current climate.

This excerpt taken from the HOS 10-Q filed Nov 10, 2008.

Outlook

The recent distress in the financial markets did not have a significant impact on our financial position, results of operations or liquidity in the third quarter of 2008. However, as noted below, those conditions did limit our ability to pursue a sale, consolidation or other monetization transaction involving our TTB segment at this time. The expected weakness in the overall economy and any continued lack of liquidity in the credit markets may affect the spending patterns of our customers and weaken demand for our services. However, we believe that we are well positioned to overcome the current crisis and that the services we provide are essential to our customers who will continue to look for, drill for and produce hydrocarbons in order to replenish their reserves and meet increasing worldwide demand.

This excerpt taken from the HOS 8-K filed Sep 26, 2005.

Outlook

 

The following statements are based on management’s current expectations. These statements are forward-looking and actual results may differ materially. Other than as expressly stated, these statements do not include the potential impact of any future capital transactions, such as business combinations, divestitures, financings, unannounced newbuilds or vessel acquisitions that may be commenced or completed after the date of this news release.

 

Updated Third Quarter 2005 Guidance. The Company now expects EBITDA for the third quarter of 2005 to range between $23.0 million and $25.0 million. As EBITDA is a non-GAAP financial measure, the reconciliation to cash flow provided by operations for these figures can be found in tables below. Based on that reconciliation, the Company’s diluted earnings per share guidance for the third quarter of 2005 is now expected to range between $0.37 and $0.43.

 

Updated Calendar 2005 Guidance. The Company now expects EBITDA for the full year 2005 to range between $90.0 million and $95.0 million and diluted earnings per share is now expected to range between $1.39 and $1.53, excluding the previously reported $0.05 per share loss on early extinguishment of debt incurred during the first quarter of 2005.

 

Updated Calendar 2006 Guidance. The Company now expects EBITDA for the full year 2006 to range between $110.0 million and $115.0 million and diluted earnings per share is now expected to range between $1.64 and $1.76.

 

Key Assumptions. The above guidance ranges are based on the assumption that current market conditions in both of the Company’s business segments will continue through at least the end of 2006. Any material change in market conditions in either of the Company’s two business segments could affect its guidance. Average OSV dayrates are expected to remain at or above $14,000 and average fleetwide utilization is expected to remain in the mid to high-90% range throughout the 2005 and 2006 guidance periods.

 

The above guidance also reflects the fact that 2005 is a transition year for the Hornbeck tug and tank barge fleet. Our 2005 EBITDA from the tug and tank barge segment is expected to be approximately 25% of the mid-point of the company-wide 2005 upwardly revised guidance range of $90.0 million to $95.0 million. Guidance for 2006 assumes a full-year contribution from all five new tank barges from the Company’s first TTB newbuild program, which is expected to result in EBITDA from the tug and tank barge segment of approximately 30% of the mid-point of the company-wide 2006 guidance range of $110 million to $115 million. Our 2006 guidance does not reflect any contribution from the MPSV conversion program that was announced last quarter or the newbuild programs announced today.

 

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The Company expects year-over-year increases of approximately 10% in its aggregate operating and G&A expenses for both 2005 and 2006 commensurate with prevailing oilfield service industry trends and higher costs related to corporate governance. G&A is assumed to remain at approximately 10% to 11% of revenue for both 2005 and 2006. However, the above guidance assumes that improvements in revenue will allow the Company to maintain or improve operating and net income margins for each of the next two years.

 

In addition, for purposes of fourth quarter 2005 and calendar 2006 EPS guidance ranges, the Company has taken into account the anticipated effect of the financing transactions announced separately today.

 

This excerpt taken from the HOS 8-K filed Aug 4, 2005.

Outlook

 

The following statements are based on management’s current expectations. These statements are forward-looking and actual results may differ materially. These statements do not include the potential impact of any future capital transactions, such as business combinations, divestitures, financings, unannounced newbuilds or vessel acquisitions that may be completed after the date of this news release.

 

In addition, the Company’s guidance ranges are based on the assumption that current market conditions in both of the Company’s business segments will continue through at least the end of 2006. Any material change in market conditions in either of the Company’s two business segments could affect its guidance.

 

Jim Harp, the Company’s Executive Vice President and CFO, stated, “We have again upwardly revised our annual 2005 and 2006 guidance ranges to reflect our actual results for the second quarter of 2005 and currently expected fleet complement through 2006, as well as our latest market outlook based on current visibility in each of our business segments. We are increasingly more comfortable that the robust market conditions we are experiencing in the Gulf of Mexico will continue through 2006, and possibly beyond. We are also optimistic that the supply-demand equation affecting our northeastern U.S. barge operations will remain favorable for the foreseeable future. Our 2006 guidance includes a full-year contribution from all five of our newbuild tank barges, but does not reflect any contribution from the multipurpose supply vessel (MPSV) conversion program that we announced last quarter. For guidance purposes, we do not expect to place the two 370 class MPSVs into service until the first quarter of 2007, at which time we expect them to contribute, in the aggregate, incremental full-year diluted EPS in the range of $0.25 to $0.35.”

 

Third Quarter 2005 Guidance. The Company expects EBITDA for the third quarter of 2005 to range between $22.0 million and $24.0 million. Please refer to the attached table for a

 

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definition and reconciliation of forward EBITDA guidance to its most directly comparable GAAP financial measure The Company expects diluted earnings per share for the third quarter of 2005 to range between $0.34 and $0.40.

 

Updated Calendar 2005 Guidance. The Company now expects total EBITDA for the full year 2005 to range between $85.0 million and $90.0 million and diluted earnings per share is now expected to range between $1.34 and $1.49, excluding the aforementioned $0.05 per share loss on early extinguishment of debt incurred during the first quarter of 2005.

 

Updated Calendar 2006 Guidance. The Company now expects total EBITDA for the full year 2006 to range between $100.0 million and $110.0 million and diluted earnings per share is now expected to range between $1.60 and $1.89.

 

Key Assumptions. The above guidance reflects management’s belief that current favorable OSV market conditions will continue through the remainder of 2005 and all of 2006. Average OSV dayrates are expected to remain at or above $13,000 and average fleetwide utilization is expected to remain in the mid-90% range throughout the 2005 and 2006 guidance periods. While fleetwide average OSV dayrates have recently exceeded historical peak levels of roughly $12,700, the Company has assumed for guidance purposes a gradual increase in effective OSV dayrates for the balance of 2005 from current levels, while holding 2006 constant with expected 2005 year-end levels.

 

The above guidance also reflects the fact that 2005 is a transition year for the Hornbeck tug and tank barge fleet. The first half of 2005 was impacted by the temporary loss of tank barge capacity due to the timing of OPA 90 retirements and newbuild delivery dates, the extra cost burden related to a lower tug-barge ratio in early 2005, as well as the previously reported delays in delivery schedules for the first two newbuilds of the Company’s five barge newbuild program. The net effect of the decrease in capacity due to such OPA 90-related retirements and the incremental contribution from the newbuild capacity is expected to result in EBITDA from the tug and tank barge segment of approximately 25% of the mid-point of the company-wide 2005 upwardly revised guidance range of $85.0 million to $90.0 million. Guidance for 2006 assumes a full-year contribution from all five new barges, which is expected to result in EBITDA from the tug and tank barge segment of approximately 33% of the mid-point of the company-wide 2006 guidance range of $100 million to $110 million.

 

The Company expects year-over-year increases of approximately 10% in its aggregate operating and G&A expenses for both 2005 and 2006 commensurate with prevailing oilfield service industry trends and higher costs related to corporate governance. G&A is assumed to remain at approximately 11% of revenue for both 2005 and 2006. However, the above guidance assumes that improvements in revenue will allow the Company to maintain or improve operating and net income margins for each of the next two years.

 

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This excerpt taken from the HOS 8-K filed May 5, 2005.

Outlook

 

The following statements are based on Hornbeck’s current expectations. These statements are forward-looking and actual results may differ materially. These statements do not include the potential impact of any future capital transactions, such as business combinations, divestitures, financings, unannounced newbuilds or vessel acquisitions that may be completed after the date of this news release.

 

In addition, the Company’s guidance ranges are based on the assumption that current market conditions in both of the Company’s business segments will last through at least 2006. Any material change in market conditions in either of the Company’s two business segments could affect its guidance.

 

Jim Harp, the Company’s Executive Vice President and CFO, stated, “We have upwardly revised our annual 2005 and 2006 guidance ranges to reflect our actual results for the first quarter of 2005 and currently expected fleet complement, as well as our latest market outlook based on current visibility in each of our business segments. We are increasingly more comfortable that the robust market conditions we are experiencing in the Gulf of Mexico will continue through 2006, and possibly beyond. We are also optimistic that the supply-demand equation in our Northeast barge operations will remain favorable for the foreseeable future. Our 2006 guidance does not reflect any contribution from the conversion program that we announced this morning. For guidance purposes, we do not expect to place the two 370 class MPSVs into service until the first quarter of 2007, at which time we expect them to contribute, in the aggregate, an incremental full-year EPS in the range of $0.25 to $0.35.”

 

Second Quarter 2005 Guidance.    The Company expects EBITDA for the second quarter of 2005 to range between $18.0 million and $20.0 million. As EBITDA is a non-GAAP financial measure, the reconciliation to net income for these figures can be found in the table below. The Company’s guidance for diluted earnings per share for the second quarter of 2005 is expected to range between $0.24 and $0.30.

 

Calendar 2005 Guidance.    The Company now expects total EBITDA for the full year 2005 to range between $77.5 million and $82.5 million and diluted earnings per share is now expected to range between $1.12 and $1.27.

 

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Calendar 2006 Guidance.    The Company now expects total EBITDA for the full year 2006 to range between $90.0 million and $100.0 million and diluted earnings per share is now expected to range between $1.36 and $1.65.

 

This excerpt taken from the HOS 8-K filed Feb 24, 2005.

Outlook

 

The following statements are based on Hornbeck’s current expectations. These statements are forward-looking and actual results may differ materially. These statements do not include the potential impact of any future capital transactions, such as business combinations, divestitures, financings, unannounced newbuilds or vessel acquisitions that may be completed after the date of this news release.

 

All of the net income and diluted earnings per share guidance ranges contained in this press release are before any non-recurring or special charges, such as the loss on early extinguishment of debt and any expense that will be required to be recorded for stock-based compensation as a result of new accounting rules that will become effective July 2005. The Company is currently evaluating the non-cash financial impact of expensing stock options and will disclose the results in a future press release.

 

In addition, the Company’s guidance ranges are based on the assumption that current market conditions in both of the Company’s business segments will last through at least 2006. Any material change in market conditions in either of the Company’s two business segments could affect its guidance.

 

Harp added, “We are extending our guidance to include 2006 since 2005 is such a transitional year in our tug and tank barge fleet with three barges having recently been retired and five barges being constructed for expected delivery at various dates throughout 2005 beginning in the second quarter. This expanded guidance is being presented in our continuing effort to provide investors greater transparency into our near-term outlook.”

 

First Quarter 2005 Guidance. The Company expects EBITDA for the first quarter of 2005 to range between $15.0 million and $16.5 million. As EBITDA is a non-GAAP financial measure, the reconciliation to net income for these figures can be found in the table below. Based on that reconciliation, diluted earnings per share guidance for the first quarter of 2005 is expected to range between $0.17 and $0.21.

 

Calendar 2005 Guidance. The Company expects total EBITDA for the full year 2005 to range between $70 million and $75 million and diluted earnings per share is expected to range between $0.87 and $1.01.

 

Calendar 2006 Guidance. The Company expects total EBITDA for the full year 2006 to range between $85 million and $95 million and diluted earnings per share is expected to range between $1.15 and $1.44.

 

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