NASSAU, Bahamas, Aug. 12, 2009 (GLOBE NEWSWIRE) -- Ultrapetrol (Bahamas) Limited (Nasdaq:ULTR), an industrial transportation company serving marine transportation needs in three core markets (River Business, Offshore Supply Business, and Ocean Business), today announced financial results for the second quarter ended June 30, 2009.
Second Quarter and Year to Date 2009 Highlights:
* Recorded revenues of $54.9 million in second quarter 2009;
* Recorded adjusted EBITDA, adjusted net income and corresponding
EPS of $18.1 million, $2.9 million and $0.10 per share, for the
second quarter of 2009;
* Recorded EBITDA of $18.1 million in second quarter 2009;
* Recorded net loss of $0.1 million, or earnings per share
("EPS") of $0.00 for the second quarter of 2009;
* Recorded EBITDA from continuing operations, net income from
continuing operations and EPS from continuing operations of
$18.4 million, $0.2 million and $0.01 per share, respectively,
for the second quarter of 2009;
* Recorded adjusted EBITDA from continuing operations, adjusted net
income from continuing operations and adjusted EPS from continuing
operations of $18.4 million, $3.3 million and $0.11 per share,
respectively, for the second quarter of 2009;
* On June 22, 2009, Ship Management and Commercial Services Ltd.
("SMS"), our subsidiary dealing with third party ship management,
entered into an Accounting and Commercial Services Agreement with
unrelated third party companies for the provision of ship management
and other advisory services in respect of a fleet of 17 vessels of
which eight are under construction.
* On June 30, 2009, the Brazilian Development Bank, or BNDES,
approved a 17-year credit facility for $18.7 million to partially
finance the construction of our UP Rubi post-delivery; and
* On August 7, 2009, the Company took delivery of its sixth vessel
in the Offshore Supply Business, an 840 m2 deck Platform Supply
Vessel which is scheduled to be delivered to Petrobras under a
4-year time charter.
Felipe Menendez, Ultrapetrol's President and Chief Executive Officer said, "During the second quarter we recorded results in line with expectations and at the same time further strengthened our financial flexibility, reduced the Company's total debt and continued to implement our growth strategy. Ultrapetrol's quarterly results were achieved despite the worsening effects of the drought in our River Business. While soybean volume in our River Business is expected to be lower in 2009 than previously anticipated, because of this drought the high price of soybeans is a strong incentive for the new seeding season. We believe that as rainfall normalizes, total production for 2010 should return to previous levels. Also boding well for our River Business is the Company's new yard, which is in its final stage of construction and is expected to be in full production this year."
Mr. Menendez continued, "In our Ocean Business, our tanker fleet remained employed under the same charters that prevailed at the end of last quarter. We also expanded our tanker fleet by adding one vessel, which is time chartered to an Oil Major on the South American coastal trade. During the second quarter, our Capesize vessels enjoyed the coverage of our FFA hedges, which continued to be an effective tool to stabilize the earnings of these vessels, as we plan for our future cash flows. Currently, this fleet remains employed under contracts of affreightment and covered through FFAs for a substantial portion of its available days in 2009 and 2010. In our Offshore Supply Business, we are pleased to have taken delivery of UP Rubi, our sixth vessel. The UP Rubi is scheduled to enter into a four-year charter. Our newbuildings in India and China are progressing. In respect of the Indian ships in particular, we expect to capitalize on the experience we have gained in the construction of the initial serried of six sister vessels to improve in the efficiency of building this design which will ultimately result in improved operational capabilities."
Overview of Financial Results
Second quarter 2009 revenues were $54.9 million compared to second quarter 2008 revenues of $80.1 million.
Second quarter 2009 EBITDA was $18.1 million, as compared with $29.0 million for the second quarter 2008. (A reconciliation of EBITDA to Net cash provided by operating activities is included below).
Net loss for the second quarter of 2009 was $0.1 million, or EPS of $0.00, as compared with net income of $11.7 million, or EPS of $0.36 in the second quarter of 2008. The second quarter 2009 results include a deferred income tax loss of $3.0 million, or $0.10 per share from unrealized foreign currency exchange rate gains on U.S. dollar denominated debt of our Brazilian subsidiary in the Offshore Supply Business. The second quarter 2008 results include a deferred income tax loss of $2.2 million, or $0.07 per share from unrealized foreign currency exchange rate gains on U.S. dollar denominated debt of our Brazilian subsidiary in the Offshore Supply Business. Net Income for the second quarter 2009, excluding this effect, is a gain of $2.9 million, or $0.10 per share as compared with $13.9 million, or $0.43 per share in the same period of 2008.
Ultrapetrol's Chief Financial Officer, Len Hoskinson, said, "During the quarter, we continued to secure long term financing to cover our capital expenditures, thus structuring the Company's financial obligations along a term consistent with the assets' capability of generating cash on a conservative basis. Specifically, we obtained the approval from BNDES for a 17-year, fixed interest, $18.7 million loan to finance the UP Rubi, our sixth offshore vessel. We remain in compliance with all debt covenants and are in a strong position to fund our capital expenditures requirements and take advantage of future opportunities. At the end of the second quarter, we had $57.4 million in cash and cash equivalents after a net reduction in our total debt of approximately $17.6 million in the quarter."
River
The Company experienced a 41% drop in the volume of cargo loaded in the second quarter 2009 as compared with the same period of 2008. Second quarter 2009 River segment EBITDA was $0.6 million versus $5.8 million in 2008. The River segment results of the second quarter of 2009 were impacted by the worst drought in the last 70 years which severely affected soybean and by-products volumes. The River segment results were also impacted by a reduction in the volume of iron ore that was loaded.
The latest 2009 USDA estimate for the Paraguayan soybean crop of 3.8 million tons implies a 47% decline in production of about 3.4 million tons, as compared with the USDA original estimate of 7.2 million tons for 2009. Local sources suggest that it could be even lower, in fact, the lowest crop since 2000. In addition, low water levels in the upper Paraguay River have affected river transit times and fuel consumed during part of the second quarter of 2009. The continuation of these low water levels in the upper stretch of the Paraguay River could have a negative effect on the volumes carried in the third and fourth quarters of 2009.
The Company is in the final stages of construction of its new barge building yard. Certain areas of the yard have already begun production, which is expected to commence full production in 2009. The Company has also continued its barge re-bottoming program and its re-engining and re-powering project, under which two large, fuel-propelled pushboats are expected to be operating for the 2010 season. In the second quarter we launched the hull of our newbuilding pushboat Zonda I the first to receive heavy fuel engines.
Offshore Supply
The Offshore Supply segment EBITDA in the second quarter of 2009 was $3.6 million compared to $4.5 million in the same period of 2008. The Company continued to operate a total of five vessels in the second quarter of 2009. The results in the Offshore Supply segment in second quarter 2009 were adversely affected by the strength of the U.S. dollar versus the British pound when compared with the same period of 2008, as the pound is the currency in which our North Sea vessels earn their income.
In the second quarter of 2009, the Company has paid the third 20% installments for one of its two PSV newbuildings currently under construction in a shipyard in China and is expecting the first of these vessels to be delivered by the end of the fourth quarter of 2009 or the beginning of 2010. Additionally, the Company also paid the third 20% installment for two of its four PSV newbuildings under construction in a shipyard in India and is expecting delivery of these vessels to commence in the first half of 2010.
While spot rates in the North Sea have been generally softer, the Brazilian market is expected to grow significantly over the next few years, which is expected to have a significant global effect.
The Company believes that the market in Brazil remains strong due to new Brazilian oil field discoveries, which will require modern large supply vessels such as those in Ultrapetrol's Offshore Supply segment fleet.
We took delivery of our sixth PSV, the UP Rubi, which is scheduled to be delivered to Petrobras under a 4-year time charter. This vessel is expected to be in operation for approximately half of the third quarter of 2009.
Ocean
The Company's Ocean segment generated EBITDA in the second quarter 2009 of $11.4 million, as compared with $21.5 million for the same period in 2008. This result is mainly attributable to lower charter rates obtained by our Capesize / OBO fleet and a 10% lower time charter rate obtained from our M/T Amadeo following the long term extension of her existing charter.
Through FFAs the Company had hedged a substantial portion of the earnings of its Capesize / OBO fleet. The Company's counterparties have met their obligations under their respective FFAs. This fleet maintains coverage through FFAs for a substantial portion of its available days in 2009 and 2010.
In April 2009, the Company took delivery of a 2008-built Product Tanker which is currently employed on the South American coastal trade.
Passenger
The Company's remaining passenger ship, the Blue Monarch, remained in lay-up, as planned, in the second quarter of 2009 and has been advertised widely for sale. No definitive proposals are in hand at present, but several potential sales are being negotiated.
Share Repurchase Program
On March 17, 2008 the Company announced that its Board of Directors had approved a share repurchase program for up to $50.0 million of its common stock up to September 30, 2008, which was subsequently extended to September 30, 2009. On March 19, 2008 the Company started repurchasing its shares under this program and, as of June 30, 2009, it had acquired 3,923,094 of its shares at an average cost of $4.97 per share for a total cost of about $19.5 million. This program does not require the Company to purchase a specific number of shares and it may be suspended or reinstated at any time at the Company's discretion and without notice. The shares purchased under this program are held as treasury stock and are recorded by the Company as authorized but unissued shares in its books.
Use of Non-GAAP Measures
Ultrapetrol believes that the disclosed non-Generally Accepted Accounting Principles ("non-GAAP") measures such as EBITDA, and any adjustments thereto, when presented in conjunction with comparable Generally Accepted Accounting Principles ("GAAP") measures, are useful for investors to use in evaluating the performance of the Company. These non-GAAP measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A reconciliation of GAAP results to non-GAAP results is presented in the tables that accompany this press release.
Investment Community Conference Call
Ultrapetrol will host a conference call for investors and analysts on Thursday, August 13, 2009, at 11:00 a.m. ET. Interested parties may participate in the live conference call by dialing 1-800-857-4261 (toll-free U.S.) or +1-312-470-7369 (outside of the U.S.); passcode: ULTR. Please register at least 10 minutes before the conference call begins. A simultaneous audio webcast of the call and an accompanying slide presentation will also be available in the Investor Relations section of Ultrapetrol's Web Site, http://www.ultrapetrol.net. The webcast will be archived on Ultrapetrol's Web site for 30 days after the call. A replay of the call will be available for one week via telephone and on Ultrapetrol's Web Site starting approximately one hour after the call ends. The replay can be accessed at 1-800-813-5523 (toll-free U.S.) or +1-203-369-3345 (outside of the U.S.); passcode: 2000.
About Ultrapetrol
Ultrapetrol is an industrial transportation company serving the marine transportation needs of its clients in the markets on which it focuses. It serves the shipping markets for grain, vegetable oils, minerals, crude oil, petroleum and refined petroleum products, as well as the offshore oil platform supply market with its extensive and diverse fleet of vessels. These include river barges and push boats, platform supply vessels, tankers, oil-bulk-ore and Capesize bulk vessels. More information about the Company can be found on its Web Site at http://www.ultrapetrol.net.
The Ultrapetrol (Bahamas) Limited logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3164
Forward-Looking Language
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, the Company's management's examination of historical operating trends, data contained in our records and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, the Company cannot assure you that the Company will achieve or accomplish these expectations, beliefs or projections.
In addition to these important factors, other important factors that, in the Company's view, could cause actual results to differ materially from those discussed in the forward-looking statements include future operating or financial results; pending or recent acquisitions, business strategy and expected capital spending or operating expenses, including dry docking and insurance costs; general market conditions and trends, including charter rates, vessel values, and factors affecting vessel supply and demand; its ability to obtain additional financing; its financial condition and liquidity, including its ability to obtain financing in the future to fund capital expenditures, acquisitions and other general corporate activities; its expectations about the availability of vessels to purchase, the time that it may take to construct new vessels, or vessels' useful lives; its dependence upon the abilities and efforts of its management team; changes in governmental rules and regulations or actions taken by regulatory authorities; adverse weather conditions that can affect production of the goods the Company transports and navigability of the river system; the highly competitive nature of the oceangoing transportation industry; the loss of one or more key customers; fluctuations in foreign exchange rates and devaluations; potential liability from future litigation; and other factors. Please see the Company's filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.
ULTR-G
CONDENSED CONSOLIDATED BALANCE SHEETS
(Stated in thousands of U.S. dollars, except per value share amounts)
As of As of
June 30, December 31,
2009 2008
(Unaudited)
------------ ------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 57,407 $ 105,859
Restricted cash 1,656 2,478
Accounts receivable, net of allowance
for doubtful accounts of $582 and $432
in 2009 and 2008, respectively 22,611 17,782
Receivables from related parties 375 363
Operating supplies 5,245 4,059
Prepaid expenses 4,830 5,294
Receivables from derivative instruments 20,474 44,152
Other receivables 14,998 23,073
Other assets 3,654 4,852
------------ ------------
Total current assets 131,250 207,912
------------ ------------
NONCURRENT ASSETS
Receivables from derivative instruments 10,270 20,078
Other receivables 8,801 11,600
Receivables from related parties 5,011 4,873
Restricted cash 1,179 1,170
Vessels and equipment, net 576,313 552,683
Dry dock 4,562 3,953
Investment in affiliates 1,835 1,815
Intangible assets 1,804 2,174
Goodwill 5,015 5,015
Other assets 8,258 9,049
Deferred income tax assets 5,848 4,737
------------ ------------
Total noncurrent assets 628,896 617,147
------------ ------------
Total assets $ 760,146 $ 825,059
============ ============
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable $ 15,458 $ 21,747
Payable to related parties 93 15
Accrued interest 2,034 2,567
Current portion of long-term
financial debt 21,710 43,421
Other liabilities 2,709 4,416
------------ ------------
Total current liabilities 42,004 72,166
------------ ------------
NONCURRENT LIABILITIES
Long-term financial debt net of
current portion 364,420 369,519
Deferred income tax liability 9,817 6,515
------------ ------------
Total noncurrent liabilities 374,237 376,034
------------ ------------
Total liabilities 416,241 448,200
------------ ------------
EQUITY
Common stock, $.01 par value:
100,000,000 authorized shares;
29,519,936 shares outstanding 334 334
Additional paid-in capital 269,314 268,425
Treasury stock 3,923,094 shares at cost (19,488) (19,488)
Accumulated earnings 57,723 57,195
Accumulated other comprehensive
income (loss) 30,827 65,423
------------ ------------
Total Ultrapetrol (Bahamas) Limited
stockholders equity 338,710 371,889
Noncontrolling interests in subsidiaries 5,195 4,970
------------ ------------
Total equity 343,905 376,859
------------ ------------
Total liabilities and equity $ 760,146 $ 825,059
============ ============
CONDENSED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(Stated in thousands of U.S. dollars except share and per share data)
Six Months Ended June 30,
--------------------------
2009 2008
------------ ------------
REVENUES
Revenues from third parties $ 112,697 $ 147,495
------------ ------------
Total revenues 112,697 147,495
------------ ------------
OPERATING EXPENSES
Voyage expenses (27,551) (35,093)
Running costs (39,257) (42,202)
Amortization of dry docking (1,855) (1,947)
Depreciation of vessels and equipment (18,063) (15,916)
Amortization of intangible assets (370) (393)
Administrative and commercial expenses (11,616) (11,099)
Other operating income 961 2,423
------------ ------------
(97,751) (104,227)
------------ ------------
Operating profit 14,946 43,268
------------ ------------
OTHER INCOME (EXPENSES)
Financial expense (12,030) (10,863)
Other financial income 1,044 --
Financial income 218 642
Gains on derivatives, net 115 5,862
Investment in affiliates 20 (49)
Other, net (402) (291)
------------ ------------
Total other (expenses) (11,035) (4,699)
------------ ------------
Income from continuing operations
before income taxes 3,911 38,569
Income taxes (2,296) (3,367)
------------ -------------
Income from continuing operations 1,615 35,202
Loss from discontinued operations (862) (5,724)
------------ ------------
Net income 753 29,478
Net income attributable to
noncontrolling interests in
subsidiaries 225 425
------------ ------------
Net income attributable to Ultrapetrol
(Bahamas) Limited $ 528 $ 29,053
============ ============
Amounts attributable to Ultrapetrol
(Bahamas) Limited:
Income from continuing operations $ 1,390 $ 34,777
Loss from discontinued operations (862) (5,724)
------------ ------------
Net income attributable to Ultrapetrol
(Bahamas) Limited $ 528 $ 29,053
============ ============
BASIC INCOME (LOSS) PER SHARE OF
ULTRAPETROL (BAHAMAS) LIMITED:
From continuing operations $ 0.05 $ 1.05
From discontinued operations (0.03) (0.17)
------------ ------------
$ 0.02 $ 0.88
============ ============
DILUTED INCOME (LOSS) PER SHARE OF
ULTRAPETROL (BAHAMAS) LIMITED:
From continuing operations $ 0.05 $ 1.05
From discontinued operations (0.03) (0.17)
------------ -------------
$ 0.02 $ 0.88
============ ============
Basic weighted average number
of shares 29,404,285 32,855,697
Diluted weighted average number
of shares 29,404,285 33,012,155
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW (UNAUDITED)
(Stated in thousands of U.S. dollars)
Six Months Ended June 30,
--------------------------
2009 2008
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 528 $ 29,053
Adjustments to reconcile net income to
net cash provided by operating
activities:
Loss from discontinued operations 862 5,724
Depreciation of vessels and equipment 18,063 15,916
Amortization of dry docking 1,855 1,947
Expenditure for dry docking (2,464) (1,411)
Gains on derivatives, net (115) (5,862)
Amortization of intangible assets 370 393
Share-based compensation 889 889
Debt issuance expense amortization 1,059 851
Net income attributable to
noncontrolling interest in
subsidiaries 225 425
Net (gain) loss from investment
in affiliates (20) 49
Allowance for doubtful accounts 150 --
Cash settlements of FFAs (70) (24,678)
Changes in assets and liabilities:
Decrease (increase) in assets:
Accounts receivable (4,979) (7,266)
Receivable from related parties (150) (318)
Other receivables, operating supplies
and prepaid expenses 5,880 (5,012)
Other 1,345 231
Increase (decrease) in liabilities:
Accounts payable (5,969) 4,495
Payable to related parties 78 45
Other 1,062 2,992
------------ ------------
Net cash provided by operating
activities from continuing operations 18,599 18,463
Net cash provided by (used in)
operating activities from discontinued
operations 406 (4,873)
------------ ------------
Total cash flows from operating
activities 19,005 13,590
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of vessels and equipment
($21,024 and $21,310 in 2009 and
2008 for vessels in construction) (42,081) (74,716)
Net decrease in funding cash collateral
of forward freight agreements -- 28,784
Cash settlements paid on forward freight
agreements -- (5,408)
Other 1,701 --
------------ ------------
Net cash (used in) investing activities
from continuing operations (40,380) (51,340)
Net cash (used in) investing activities
from discontinued operations -- (1,380)
------------ ------------
Total cash flows (used in) investing
activities (40,380) (52,720)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Scheduled repayments of long-term
financial debt (7,366) (8,116)
Early repayments of long-term
financial debt (22,894) --
Proceeds from long-term financial debt 3,450 31,900
Decrease in short-term financial debt -- (15,000)
Funds used in repurchase of
treasury shares -- (6,466)
Other (267) 3,007
------------ ------------
Net cash (used in) provided by
financing activities from continuing
operations (27,077) 5,325
------------ ------------
Net (decrease) in cash and cash
equivalents (48,452) (33,805)
Cash and cash equivalents at the
beginning of year (including $2,546
and $1,448 related to discontinued
operations) $ 105,859 $ 64,262
------------ ------------
Cash and cash equivalents at the end
of period (including $308 and $336
related to discontinued operations) $ 57,407 $ 30,457
------------ ------------
SUPPLEMENTAL INFORMATION
The following tables reconcile our EBITDA to our cash flow for
the three months ended June 30, 2009 and 2008.
=====================================================================
Three Months
Ended June 30,
=====================================================================
($000) 2009 2008
---------------------------------------------------------------------
Total cash flows provided by (used in)
operating activities 3,976 (11,331)
Total cash flows provided by (used in)
investing activities (17,185) (12,366)
Total cash flows provided by (used in)
financing activities (17,846) 12,197
---------------------------------------------------------------------
---------------------------------------------------------------------
Net cash provided by (used in) operating
activities from continuing operations 3,960 (7,645)
Net cash provided by (used in) operating
activities from discontinued operations 16 (3,686)
Total cash flows provided by (used in)
from operating activities 3,976 (11,331)
---------------------------------------------------------------------
Plus
Adjustments from continuing operations
Increase / decrease in operating assets and
liabilities 6,300 8,225
Expenditure for dry docking 1,554 716
Income taxes 1,889 2,740
Financial expenses 5,966 4,402
Gain on derivatives, net 110 24,229
Other adjustments (1,398) (790)
Adjustments from discontinued operations
Increase / decrease in operating assets and
liabilities (632) 519
Expenditure for dry docking -- 261
Income taxes -- --
Financial expenses 3 7
(Gain) on disposal of assets -- --
Other adjustments 304 --
---------------------------------------------------------------------
EBITDA from continuing operations 18,381 31,877
EBITDA from discontinued operations (309) (2,899)
=====================================================================
Consolidated EBITDA 18,072 28,978
=====================================================================
1) EBITDA consists of net income (loss) prior to deductions for
interest expense and other financial gains and losses related to the
financing of the Company, income taxes, depreciation of vessels and
equipment and amortization of drydock expense, intangible assets,
financial gain (loss) on extinguishment of debt and a premium paid
for redemption of preferred shares. We have provided EBITDA in this
report because we use it to, and believe it provides useful
information to investors to evaluate our ability to incur and service
indebtedness and it is a required disclosure to comply with a
covenant contained in the Indenture governing the Company's 9% First
Preferred Ship Mortgage Notes due 2014. We do not intend for EBITDA
to represent cash flows from operations, as defined by GAAP (on the
date of calculation) and it should not be considered as an
alternative to measure our liquidity. This definition of EBITDA may
not be comparable to similarly titled measures disclosed by other
companies. Generally, funds represented by EBITDA are available for
management's discretionary use. EBITDA has limitations as an
analytical tool, and should not be considered in isolation, or as a
substitute for analysis of our results as reported.
The following tables reconcile the Company's EBITDA to its Operating
profit for the three months ended June 30, 2009 and 2008, on a
consolidated and a per segment basis:
($000) Three Months Ended June 30, 2009
Offshore
River Supply Ocean TOTAL
---------------------------------------------------------------------
Segment operating profit (loss) ($2,784) $2,322 $5,952 $5,490
Depreciation and amortization 3,533 1,369 5,401 10,303
Investment in affiliates / Net
income attributable to non
controlling interest in
subsidiaries 78 (95) 32 15
Gains on derivatives, net 0 40 0 40
Other Net (239) (11) 7 (243)
---------------------------------------------------------------------
Segment EBITDA $588 $3,625 $11,392 $15,605
---------------------------------------------------------------------
Items not included in segment
EBITDA
Financial income $123
Other financial expenses $2,653
Loss from discontinued
operations ($309)
=====================================================================
Consolidated EBITDA $18,072
=====================================================================
($000) Three Months Ended June 30, 2008
Offshore
River Supply Ocean TOTAL
---------------------------------------------------------------------
Segment operating profit (loss) $2,593 $3,402 $17,122 $23,117
Depreciation and amortization 3,110 1,212 4,859 9,181
Investment in affiliates / Net
income attributable to non
controlling interest in
subsidiaries 202 (185) (77) (60)
Gains on derivatives, net -- -- (449) (449)
Other Net (147) 30 1 (116)
---------------------------------------------------------------------
Segment EBITDA $5,758 $4,459 $21,456 $31,673
---------------------------------------------------------------------
Items not included in segment
EBITDA
Financial income 204
Loss from discontinued
operations (2,899)
=====================================================================
Consolidated EBITDA $28,978
=====================================================================
The following tables reconcile the Company's Adjusted Net Income and Adjusted EPS to its Net Income and EPS, respectively, for the three months ended June 30, 2009 and 2008, on a consolidated basis:
------------------- ----------- ----------- ----------- -----------
2Q 09 2Q 08 2Q 09 2Q 08
Incl. Disc. Incl. Disc. Excl. Disc. Excl. Disc.
(In $ 000's) Op. Op. Op. Op.
------------------- ----------- ----------- ----------- -----------
Net income as
reported $(89) $11,714 $223 $15,554
EPS as reported $0.00 $0.36 $0.01 $0.48
Adjustments
Income Tax on
Exchange Variance
Provision(1) 3,027 2,164 3,027 2,164
------------------- ----------- ----------- ----------- -----------
Adjusted Net Income $2,938 $13,878 $3,250 $17,718
Adjusted EPS (In $) $0.10 $0.43 $0.11 $0.54
------------------- ----------- ----------- ----------- -----------
(1) Provision for Income Tax on foreign currency exchange gains on
U.S. dollar denominated debt of one of our subsidiaries on the
Offshore Supply Business.