McDermott International Inc. Announces Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2016; Provides Earnings Guidance and Impairment Guidance for the Year Ending December 31, 2016; Reports Impairment Charges for the First Quarter Ended March 31, 2016
McDermott International Inc. announced unaudited consolidated earnings results for the first quarter ended March 31, 2016. For the quarter, the company reported revenues of $729,032,000 against $550,463,000 a year ago. Operating income was $35,993,000 against $13,306,000 a year ago. Operating income was positively impacted by continued project execution on the INPEX Ichthys project, successful completion of the PB Litoral project ahead of the agreed-upon schedule and an extensive offshore installation campaign on the Saudi Aramco 12 Jackets project, where activities remained on schedule. Income before provision for income taxes was $21,364,000 against loss of $438,000 a year ago. Net loss attributable to the company was $2,172,000 or $0.01 per basic and diluted share against $14,507,000 or $0.06 per basic and diluted share a year ago. Capital expenditures were $31,900,000 against $23,972,000 a year ago. Total cash provided by operating activities was $59,280,000 against total cash used in operating activities of $18,539,000 a year ago. Purchase of property, plant and equipment was $31,900,000 against $23,972,000 a year ago. Non-GAAP adjusted net income attributable to the company was $36,506,000 against Non-GAAP adjusted net loss attributable to the company of $4,118,000 a year ago. Non-GAAP adjusted operating income was $74,671,000 against $23,695,000 a year ago. Non-GAAP diluted EPS was $0.13 against non-GAAP Diluted LPS of $0.02 a year ago.
The company provided earnings guidance for the year ending December 31, 2016. For the year, the company expects GAAP net loss attributable to MDR of $29,000,000, non-GAAP adjusted net loss attributable to MDR of $18,000,000, GAAP operating income of $108,000,000, non-GAAP adjusted operating income of $155,000,000, GAAP diluted LPS of $0.12, GAAP diluted EPS of $0.06, cash flows from operating activities of $115,000,000, capital expenditures of $265,000,000, free cash flow of $150,000,000, depreciation and amortization of $107,000,000, interest expense, net of $60,000,000, EBITDA of $198,000,000, adjusted EBITDA of $245,000,000, revenue of $2.7 billion.
For the 2016 first quarter, the company reported impairment charges was $32.3 million against nil a year ago.
For the year ending December 31, 2016, the company expected impairment charges was $32 million.