Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | HORNBECK OFFSHORE SERVICES INC /LA | |
Entity Central Index Key | 0001131227 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 37,993,329 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 136,401 | $ 224,936 |
Restricted Cash, Current | 227 | 0 |
Accounts receivable, net of allowance for doubtful accounts of $2,528 and $1,123, respectively | 57,387 | 54,924 |
Other current assets | 18,203 | 19,768 |
Total current assets | 212,218 | 299,628 |
Property, plant and equipment, net | 2,360,254 | 2,434,829 |
Restricted Cash, Noncurrent | 56,223 | 0 |
Deferred charges, net | 33,241 | 22,525 |
Operating Lease, Right-of-Use Asset | 23,237 | 0 |
Other assets | 6,633 | 7,655 |
Total assets | 2,691,806 | 2,764,637 |
Current liabilities: | ||
Accounts payable | 32,621 | 26,826 |
Accrued interest | 14,425 | 15,910 |
Accrued payroll and benefits | 8,391 | 12,445 |
Current portion of long-term debt, net of original issue discount of $0 and $2,725 and deferred financing costs of $487 and $611, respectively | 223,826 | 96,311 |
Operating Lease, Liability, Current | 2,972 | 0 |
Other accrued liabilities | 9,429 | 9,750 |
Total current liabilities | 291,664 | 161,242 |
Long-term debt, including deferred net gain of $33,373 and $15,845, and net of original issue discount of $3,310 and $3,013 and deferred financing costs of $10,906 and $6,149, respectively | 1,040,392 | 1,123,625 |
Deferred Income Tax Liabilities, Net | 136,454 | 169,122 |
Operating Lease, Liability, Noncurrent | 23,563 | 0 |
Other liabilities | 1,839 | 2,722 |
Total liabilities | 1,493,912 | 1,456,711 |
Stockholders’ equity: | ||
Preferred stock: $0.01 par value; 5,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock: $0.01 par value; 100,000 shares authorized; 37,993 and 37,701 shares issued and outstanding, respectively | 380 | 377 |
Additional paid-in-capital | 765,661 | 761,834 |
Retained earnings | 437,636 | 549,475 |
Accumulated other comprehensive loss | (5,783) | (3,760) |
Total stockholders’ equity | 1,197,894 | 1,307,926 |
Total liabilities and stockholders’ equity | $ 2,691,806 | $ 2,764,637 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowance for doubtful accounts of | $ 2,528 | $ 1,123 |
Current portion of long-term debt, net of original issue discount of | 0 | 2,725 |
Current portion of long-term debt, net of deferred financing costs of | 487 | 611 |
Debt Instrument, unamortized discount | 3,310 | 3,013 |
Long-term debt, net of deferred financing costs of | 10,906 | 6,149 |
Long-term debt, including deferred net gain of | $ 33,373 | $ 15,845 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock shares authorized | 5,000,000 | 5,000,000 |
Preferred stock issued | 0 | 0 |
Preferred stock outstanding | 0 | 0 |
Common stock Par Value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock issued | 37,993,000 | 37,701,000 |
Common stock outstanding | 37,993,000 | 37,701,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | $ 52,830 | $ 58,468 | $ 163,711 | $ 158,486 |
Costs and expenses: | ||||
Operating expenses | 41,131 | 38,203 | 121,742 | 109,030 |
Depreciation | 24,559 | 24,843 | 73,987 | 74,121 |
Amortization | 4,033 | 2,725 | 11,373 | 6,973 |
General and administrative expenses | 13,362 | 15,134 | 38,378 | 40,255 |
Costs and Expenses, Total | 83,085 | 80,905 | 245,480 | 230,379 |
Gain on sale of assets | 7 | 25 | 62 | 55 |
Operating loss | (30,248) | (22,412) | (81,707) | (71,838) |
Other income (expense): | ||||
Loss on early extinguishment of debt, net | 0 | 0 | (71) | 0 |
Interest income | 1,314 | 531 | 3,349 | 1,693 |
Interest expense | (22,249) | (16,548) | (61,970) | (46,894) |
Other income (expense), net | (268) | 23 | (351) | (41) |
Nonoperating Income (Expense) | (21,203) | (15,994) | (59,043) | (45,242) |
Loss before income taxes | (51,451) | (38,406) | (140,750) | (117,080) |
Income tax benefit | (10,047) | (7,223) | (30,783) | (22,152) |
Net loss | $ (41,404) | $ (31,183) | $ (109,967) | $ (94,928) |
Loss per share: | ||||
Basic loss per common share | $ (1.09) | $ (0.83) | $ (2.90) | $ (2.53) |
Diluted loss per common share | $ (1.09) | $ (0.83) | $ (2.90) | $ (2.53) |
Weighted average basic shares outstanding | 37,993 | 37,595 | 37,886 | 37,479 |
Weighted average diluted shares outstanding | 37,993 | 37,595 | 37,886 | 37,479 |
Vessel Revenues [Member] | ||||
Revenues | $ 43,683 | $ 49,401 | $ 136,192 | $ 132,016 |
Non-vessel revenues [Member] | ||||
Revenues | $ 9,147 | $ 9,067 | $ 27,519 | $ 26,470 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (41,404) | $ (31,183) | $ (109,967) | $ (94,928) |
Other comprehensive income (loss): | ||||
Foreign currency translation loss | (5,647) | (2,994) | (3,895) | (14,209) |
Total comprehensive loss | $ (47,051) | $ (34,177) | $ (113,862) | $ (109,137) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income |
Beginning Balance (in shares) at Dec. 31, 2017 | 37,144 | ||||
Beginning Balance at Dec. 31, 2017 | $ 1,437,924 | $ 371 | $ 760,278 | $ 668,598 | $ 8,677 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued under employee benefit programs, Shares | 451 | ||||
Shares issued under employee benefit programs | (272) | $ 5 | (277) | ||
Stock-based compensation expense | 1,384 | 1,384 | |||
Net loss | (94,928) | (94,928) | |||
Foreign currency translation loss | (14,209) | (14,209) | |||
Ending Balance (in shares) at Sep. 30, 2018 | 37,595 | ||||
Ending Balance at Sep. 30, 2018 | 1,329,899 | $ 376 | 761,385 | 573,670 | (5,532) |
Beginning Balance (in shares) at Jun. 30, 2018 | 37,595 | ||||
Beginning Balance at Jun. 30, 2018 | 1,363,633 | $ 376 | 760,942 | 604,853 | (2,538) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued under employee benefit programs, Shares | 0 | ||||
Shares issued under employee benefit programs | 0 | $ 0 | 0 | ||
Stock-based compensation expense | 443 | 443 | |||
Net loss | (31,183) | (31,183) | |||
Foreign currency translation loss | (2,994) | (2,994) | |||
Ending Balance (in shares) at Sep. 30, 2018 | 37,595 | ||||
Ending Balance at Sep. 30, 2018 | 1,329,899 | $ 376 | 761,385 | 573,670 | (5,532) |
Beginning Balance (in shares) at Dec. 31, 2018 | 37,700 | ||||
Beginning Balance at Dec. 31, 2018 | 1,307,926 | $ 377 | 761,834 | 549,475 | (3,760) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued under employee benefit programs, Shares | 293 | ||||
Shares issued under employee benefit programs | 4 | $ 3 | 1 | ||
Adoption of ASU 2018-02 | (1,872) | 1,872 | |||
Stock-based compensation expense | 3,826 | 3,826 | |||
Net loss | (109,967) | (109,967) | |||
Foreign currency translation loss | (3,895) | (3,895) | |||
Ending Balance (in shares) at Sep. 30, 2019 | 37,993 | ||||
Ending Balance at Sep. 30, 2019 | 1,197,894 | $ 380 | 765,661 | 437,636 | (5,783) |
Beginning Balance (in shares) at Jun. 30, 2019 | 37,993 | ||||
Beginning Balance at Jun. 30, 2019 | 1,243,909 | $ 380 | 764,625 | 479,040 | (136) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued under employee benefit programs, Shares | 0 | ||||
Shares issued under employee benefit programs | 0 | $ 0 | 0 | ||
Stock-based compensation expense | 1,036 | 1,036 | |||
Net loss | (41,404) | (41,404) | |||
Foreign currency translation loss | (5,647) | (5,647) | |||
Ending Balance (in shares) at Sep. 30, 2019 | 37,993 | ||||
Ending Balance at Sep. 30, 2019 | $ 1,197,894 | $ 380 | $ 765,661 | $ 437,636 | $ (5,783) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (109,967) | $ (94,928) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 73,987 | 74,121 |
Amortization | 11,373 | 6,973 |
Stock-based compensation expense | 2,535 | 8,922 |
Loss on early extinguishment of debt | 71 | 0 |
Provision for bad debts | 1,405 | 88 |
Deferred tax benefit | (31,637) | (22,866) |
Amortization of deferred financing costs | 99 | 3,298 |
Gain on sale of assets | (62) | (55) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (4,677) | (30,347) |
Other current and long-term assets | (655) | 3,060 |
Deferred drydocking charges | (23,000) | (7,233) |
Accounts payable | 6,539 | 29,833 |
Accrued liabilities and other liabilities | 3,196 | 2,487 |
Accrued interest | (1,484) | 871 |
Net cash used in operating activities | (72,277) | (25,776) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Costs incurred for acquisition of offshore supply vessels | 0 | (40,868) |
Costs incurred for OSV newbuild program | (2,165) | (3,670) |
Net proceeds from sale of assets | 68 | 82 |
Vessel capital expenditures | (1,436) | (7,295) |
Non-vessel capital expenditures | (355) | (107) |
Net cash used in investing activities | (3,888) | (51,858) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from first-lien term loans | 29,159 | 0 |
Repurchase of convertible notes | (73,076) | 0 |
Proceeds from Senior Credit Facility | 100,000 | 0 |
Payment of deferred financing costs | (11,891) | 0 |
Shares withheld for payment of employee withholding taxes | 0 | (536) |
Net cash proceeds from other shares issued | 126 | 260 |
Net cash provided by (used in) financing activities | 44,318 | (276) |
Effects of exchange rate changes on cash | (238) | (873) |
Net decrease in cash, cash equivalents and restricted cash | (32,085) | (78,783) |
Cash, cash equivalents and restricted cash at beginning of period | 224,936 | 186,849 |
Cash, cash equivalents and restricted cash at end of period | 192,851 | 108,066 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW ACTIVITIES: | ||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 63,318 | |
Cash paid for interest | 44,936 | |
Cash paid for income taxes | 369 | 933 |
Convertible 1.500 Percent Senior Notes Due 2019 | ||
Exchange of notes for term loan | 20,951 | 0 |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Loss on early extinguishment of debt | (3,600) | |
Senior Notes 5.875 Percent Due 2020 | ||
Exchange of notes for term loan | $ 142,629 | $ 0 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements do not include certain information and footnote disclosures required by United States generally accepted accounting principles, or GAAP. The interim financial statements and notes are presented as permitted by instructions to the Quarterly Report on Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments necessary for a fair presentation of the interim financial statements have been included and consist only of normal recurring items. The unaudited quarterly financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Annual Report on Form 10-K of Hornbeck Offshore Services, Inc. (together with its subsidiaries, the “Company”) for the year ended December 31, 2018 . The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . The consolidated balance sheet at December 31, 2018 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. |
Going Concern
Going Concern | 9 Months Ended |
Sep. 30, 2019 | |
Text Block [Abstract] | |
Going Concern | Going Concern Since the second half of 2014, the offshore oil service sector has experienced difficult operating conditions due to the reduced price of oil. This low oil price environment caused many of the Company's customers to reduce their budgets for the worldwide exploration or production of oil. This reduced spending has negatively impacted the Company's financial results. As discussed in Note 8 , the Company's 2020 senior notes and 2021 senior notes mature in April 2020 and March 2021, respectively. The maturity of the Company’s 2020 senior notes now falls within the twelve-month period following the issuance of these financial statements for which the Company is required to evaluate as part of its assessment of its ability to continue as a going concern. Management of the Company continues to believe it has adequate liquidity to fund its operations up until the maturity of the 2020 senior notes. However, absent the combination of a significant recovery of market conditions such that cash flow from operations were to increase materially from currently projected levels, coupled with the refinancing and/or further management of its funded debt obligations, the Company does not currently expect to have sufficient liquidity to repay the full amount of the 2020 senior notes and the 2021 senior notes as they mature in 2020 and 2021, respectively. Management continues to implement its on-going plan to address its maturities as they become due, including efforts in connection with the refinancing of its 2020 senior notes. The closing of the $100 million senior credit facility in June 2019 was the latest step in that iterative process. Based on continuing discussions with existing and potential lenders, management is cautiously optimistic that it will be able to successfully implement this plan. However, management recognizes that its plan depends on the actions of these third parties, including reaching an agreement with existing senior note holders and/or obtaining new sources of liquidity, and, therefore, the Company is unable at this time to conclude that such plan is reasonably certain of being achieved. Accordingly, given the uncertainty with respect to the Company’s ability to pay its 2020 senior notes in full as they become due, the Company acknowledges that substantial doubt exists regarding its ability to continue as a going concern. There can be no assurance that cash flows from operations will increase materially or that the Company will succeed in reaching agreements with its senior note holders or accessing new capital to pay the 2020 senior notes in full as they become due in April 2020. The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates continuity of operations, realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the date of these consolidated financial statements. As such, the accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of assets and their carrying amounts, or the amount and classification of liabilities that may result should the Company be unable to continue as a going concern. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Standard Description Required Date of Adoption Effect on the financial statements and other significant matters Standards that have been adopted ASU No. 2016-02, "Leases" (Topic 842) This standard requires lessees to recognize a lease liability and a right-of-use asset for all leases (with the exception of short-term leases) at the commencement date. ASU 2016-02 requires a modified retrospective application. Early adoption is permitted. January 1, 2019 The Company adopted this ASU effective January 1, 2019. See further discussion below and in footnote 12. ASU No. 2018-02, "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" This standard allows companies to reclassify items in accumulated other comprehensive income to retained earnings for stranded tax effects resulting from The Tax Cuts and Jobs Act. January 1, 2019 The Company adopted ASU No. 2018-02 on January 1, 2019. This adoption had no material impact on its consolidated financial statements. ASU No. 2018-09, "Codification Improvements" This standard provides clarification, corrects errors in and makes minor improvements to various ASC topics. Many of the amendments in this update have transition guidance with effective dates for annual periods beginning after December 15, 2018, and some amendments do not require transition guidance and are effective upon issuance of this update. January 1, 2019 The Company adopted ASU No. 2018-09 on January 1, 2019. This adoption had no material impact on its consolidated financial statements. ASU No. 2018-11, "Leases" (Topic 842): Targeted Improvements This standard provides for the election of transition methods between the modified retrospective method and the optional transition relief method. The modified retrospective method is applied to all prior reporting periods presented with a cumulative-effect adjustment recorded in the earliest comparative period while the optional transition relief method is applied beginning in the period of adoption with a cumulative-effect adjustment recorded in such period. Also, this standard allows lessors to elect to not separate non-lease components from the associated lease components if certain criteria are met. January 1, 2019 The Company adopted ASU No. 2018-11 on January 1, 2019. See further discussion below. Standards that have not been adopted ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" This standard requires measurement and recognition of expected credit losses for financial assets held. ASU No. 2016-13 requires modified retrospective application. Early adoption is permitted. January 1, 2023 The Company believes that the implementation of this new guidance will not have a material impact on its consolidated financial statements. ASC 842, Leases Lessee Accounting In February 2016, the Financial Accounting Standards Board, or FASB, issued ASU 2016-02, Leases , which requires lessees to recognize a right-of-use, or ROU, asset and a lease obligation for all leases. This ASU became effective for the Company for its annual reporting period beginning January 1, 2019, including interim periods within that reporting period. The Company adopted the standard using a modified retrospective approach with the effective date of the standard as the date of initial application. The Company elected the package of practical expedients permitted under the transition guidance within the standard, which eliminates the reassessment of past leases, classification and initial direct costs. For leases with a term of twelve months or less, the Company has made a policy election in which the ROU asset and lease liability will not be recognized on its balance sheet. As a result of the Company's adoption of this new standard, it recorded ROU assets of $24.7 million and lease liabilities of $27.7 million . The adoption of the standard did not have an impact on the Company's equity and will not have a material impact on the Company's results of operations and cash flows. Lessor Accounting Under ASU 2018-11, a lessor may elect to combine lease and non-lease components provided that the non-lease component(s) otherwise would be accounted for under the new revenue guidance in ASC 606 and both of the following conditions are met: • The timing and pattern of transfer for the lease component are the same as those for the non-lease components associated with that lease component. • The lease component, if accounted for separately, would be classified as an operating lease. When the above conditions are met, the entity will need to assess predominance. If the non-lease components are predominant, the entity accounts for the combined component under ASC 606; otherwise, the entity accounts for the combined component under ASC 842. After review of its revenue streams, the Company has concluded that the non-lease component of its revenue is predominant, and that both of the criteria above are met. Therefore, the Company has adopted the new transition options and combines lease and non-lease revenues. The Company recognizes revenue based on the non-lease component under ASC 606, as it has concluded that the non-lease component is the predominant component. The adoption of ASU 2018-11 on January 1, 2019 did not change the timing or amounts of revenues recognized by the Company. |
Revenues From Contracts With Cu
Revenues From Contracts With Customers | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | Revenues from Contracts with Customers Effective January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers, using the modified retrospective method. The adoption of this standard did not have a material impact on the Company's financial position or results of operations. Accordingly, the Company did not make an adjustment to the opening balance of retained earnings in order to account for the implementation of the new requirements of this standard, and it did not restate prior period information for the effects of the new standard. The services that are provided by the Company represent a single performance obligation under our contracts that are satisfied at a point in time or over time. Revenues are earned primarily by (1) chartering the Company's vessels, including the operation of such vessels, (2) providing vessel management services to third party vessel owners, and (3) providing shore-based port facility services, including the rental of land. The services generating these revenue streams are provided to customers based upon contracts that include fixed or determinable prices and do not generally include right of return or other significant post-delivery obligations. The Company's vessel revenues, vessel management revenues and port facility revenues are recognized either at a point in time or over the passage of time when the customer has received or is receiving the benefit from the applicable service. Revenues are recognized when the performance obligations are satisfied in accordance with contractual terms and in an amount that reflects the consideration that the Company expects to be entitled to in exchange for the services rendered or rentals provided. Revenues are recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. Invoices are typically billed to our customers on a monthly basis and payment terms on customer invoices typically range 30 to 60 days. A performance obligation under contracts with the Company's customers to render services is the unit of account under Topic 606. The Company accounts for services rendered separately if they are distinct and the service is separately identifiable from other items provided to a customer and if a customer can benefit from the services rendered provided on its own or with other resources that are readily available to the customer. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. As of September 30, 2019 , the Company has certain remaining performance obligations representing contracted vessel revenues for which work has not been performed and such contracts have an original expected duration of more than one year. As of September 30, 2019 , the aggregate amount of the transaction price allocated to remaining performance obligations for such contracts was $5.9 million , of which $1.5 million and $4.4 million are expected to be recognized in 2019 and 2020 , respectively. The Company has elected to apply the optional exemption for the disclosure of the remaining performance obligations for any of its revenue streams that are expected to have a duration of one year or less and, therefore, such amounts have not been disclosed. Disaggregation of Revenues For the three and nine months ended September 30, 2019 and 2018 , the Company recognized revenues as follows (in thousands): Three Months Ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Vessel revenues $ 43,683 $ 49,401 $ 136,192 $ 132,016 Vessel management revenues 8,673 8,039 26,291 23,772 Shore-based facility revenues 474 1,028 1,228 2,698 $ 52,830 $ 58,468 $ 163,711 $ 158,486 |
Loss Per Share
Loss Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Loss Per Share | Loss per share Basic and Diluted loss per common share was calculated by dividing net loss by the weighted average number of common shares outstanding during the period. Weighted average number of common shares outstanding was calculated by using the sum of the shares determined on a daily basis divided by the number of days in the period. The table below reconciles the Company’s loss per share (in thousands, except for per share data): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Net loss $ (41,404 ) $ (31,183 ) $ (109,967 ) $ (94,928 ) Weighted average number of shares of common stock outstanding 37,993 37,595 37,886 37,479 Add: Net effect of dilutive stock options and unvested restricted stock (1)(2)(3) — — — — Weighted average number of dilutive shares of common stock outstanding 37,993 37,595 37,886 37,479 Loss per common share: Basic loss per common share $ (1.09 ) $ (0.83 ) $ (2.90 ) $ (2.53 ) Diluted loss per common share $ (1.09 ) $ (0.83 ) $ (2.90 ) $ (2.53 ) (1) Due to a net loss, the Company excluded from the calculation of loss per share the effect of equity awards representing the rights to acquire 4,683 and 3,659 shares of common stock for the three and nine months ended September 30, 2019 , respectively and 529 shares and 602 shares of common stock for the three and nine months ended September 30, 2018 , respectively. (2) For the nine months ended September 30, 2019 and 2018 and for the three months ended September 2018, the 2019 convertible senior notes were not dilutive, as the average price of the Company’s stock was less than the effective conversion price of such notes. In September 2019, the Company repaid the remaining balance of the 2019 convertible senior notes in full upon their maturity. See Note 8 for further discussion. It was the Company's stated intention to redeem the principal amount of its 2019 convertible senior notes in cash and the Company used the treasury method for determining potential dilution in the diluted earnings per share computation. (3) Dilutive unvested restricted stock units are expected to fluctuate from quarter to quarter depending on the Company’s performance compared to a predetermined set of performance criteria. See Note 9 to these financial statements for further information regarding certain of the Company’s restricted stock grants. |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Asset Impairment Assessment In accordance with ASC 360, the Company periodically reviews long-lived asset valuations when events or changes in circumstances indicate that an asset’s carrying value may not be recoverable. If indicators of impairment exist, the Company assesses the recoverability of its long-lived assets by comparing the projected future undiscounted cash flows associated with the related long-lived asset group over their remaining estimated useful lives. If the sum of the estimated undiscounted cash flows are less than the carrying amounts of the asset group, the assets are written down to their estimated fair values based on the expected discounted future cash flows or appraised values attributable to the assets. The future cash flows are subjective and are based on the Company’s current assumptions regarding future dayrates, utilization, operating expense, direct overhead, including G&A expense, and recertification costs that could differ from actual results. During the second quarter of 2016, the Company determined that it observed indicators of impairment related to its vessels. This resulted from the rapid deterioration of its second quarter 2016 operating results, as well as the uncertainty regarding future market conditions and the related impact on the Company's projected operating results. For the purpose of calculating the undiscounted cash flows, the Company grouped its vessels into two groups, OSVs and MPSVs, and used a probability-weighted undiscounted cash flow projection to test for recoverability. Included in the cash flow projections were assumptions related to the current mix of active and stacked vessels, the timing of stacked vessels returning to active status along with projected dayrates, operating expenses and overhead expenses related to each of the groupings. While the Company has not observed any new impairment indicators since 2016, it has reviewed and updated, as necessary, the assumptions used in determining its undiscounted cash flow projections for each asset group to reflect current market conditions. After reviewing the results of these projections, which were last updated in 2019, the Company determined that each of its asset groups continue to have sufficient projected undiscounted cash flows to recover the remaining book value of the Company's long-lived assets within such group. |
Acquisition of Vessels
Acquisition of Vessels | 9 Months Ended |
Sep. 30, 2019 | |
Acquisition of Vessels [Abstract] | |
Acquisition of Vessels | Acquisition of Vessels On May 18, 2018 , the Company completed the acquisition of four high-spec Jones Act-qualified OSVs and related equipment from Aries Marine Corporation and certain of its affiliates for $40.9 million in cash, inclusive of $4.0 million related to a non-compete intangible asset that is being amortized over the life of such asset, or two years. Also included in this transaction was the cost of fuel and lube inventory and transactions fees. The acquired vessels were all U.S.-flagged and are comprised of two 300 class OSVs and two 280 class OSVs. Subsequent to the acquisition, these four vessels have been foreign-flagged. The Company determined that substantially all of the fair value of the assets acquired are concentrated in a group of similar identifiable assets and, therefore, has accounted for such transaction as an asset acquisition under ASU 2017-01. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of the dates indicated, the Company had the following outstanding debt (in thousands): September 30, December 31, 5.875% senior notes due 2020, net of deferred financing costs of $487 and $1,162 $ 223,826 $ 365,780 5.000% senior notes due 2021, net of deferred financing costs of $1,446 and $2,173 448,554 447,827 1.500% convertible senior notes due 2019, net of original issue discount of $0 and $2,725 and deferred financing costs of $0 and $611 — 96,311 First-lien term loans due 2023, including deferred gain of $13,913 and $15,845, and net of original issue discount of $3,310 and $3,013, and deferred financing costs of $3,491 and $2,814 357,112 310,018 Second-lien term loans due 2025, including deferred gain of $19,460 140,695 — Senior credit facility, net of deferred financing costs of $5,969 94,031 — 1,264,218 1,219,936 Less current maturities (223,826 ) (96,311 ) $ 1,040,392 $ 1,123,625 The table below summarizes the Company's cash interest payments (in thousands): Cash Interest Payments Payment Dates 5.875% senior notes due 2020 $ 6,589 April 1 and October 1 5.000% senior notes due 2021 11,250 March 1 and September 1 First-lien term loans due 2023 2,728 Variable (1) Second-lien term loans due 2025 2,879 January 31, April 30, July 31, and October 31 Senior credit facility 611 Monthly (2) (1) The interest rate on the first-lien term loans is variable based on the Company's election. The amount reflected in this table is the monthly amount payable based on the 30-day LIBOR interest rate that was elected and in effect on September 30, 2019 plus an applicable margin, which is currently 7.00%. Please see further discussion of the variable interest rate below. (2) The interest rate on the senior credit facility is variable based on 30-day LIBOR plus a 5.00% margin. The amount reflected in this table is the monthly amount payable based on the 30-day LIBOR interest rate that was in effect on September 30, 2019 . Please see further discussion of the variable interest rate below. Senior Credit Facility On June 28, 2019, the Company entered into a $100.0 million senior secured asset-based revolving credit facility, or the senior credit facility. The senior credit facility is guaranteed by certain of the Company's domestic and foreign subsidiaries and contains customary representations and warranties, covenants and events of default. The fully-funded senior credit facility is secured by first-priority liens on receivables, certain restricted and unrestricted cash accounts and related assets. The senior credit facility is comprised of two tranches that will rebalance each month based on the variable receivable-backed borrowing base. The unrestricted receivables-backed tranche will mature in 2022, whereas the restricted cash-backed tranche will mature in 2025. The receivables-backed tranche may be used, subject to the completion of applicable eligibility review procedures, for working capital and general corporate purposes, including the refinancing or repayment of existing debt, subject to, among other things, compliance with certain requirements. The cash-backed tranche may, over time, rebalance to the receivables-backed tranche as eligible receivables increase and may be refinanced over time. Borrowings under the senior credit facility accrue interest at a floating-rate LIBOR plus a fixed spread of 5.00 % for the life of the facility. The Company may, at its option from time to time, prepay loans under either tranche of the senior credit facility. Fifty percent of such loans available under the senior credit facility is subject to a prepayment premium (i) at 103 % of the principal amount repaid if such repayment occurs on or prior to June 28, 2020; (ii) at 102 % of the principal amount repaid if such repayment occurs on or prior to June 28, 2021; (iii) at 101 % of the principal amount repaid if such repayment occurs on or prior to December 28, 2021 and (iv) at 100 % of the principal amount repaid if such repayment occurs after December 28, 2021, with such premiums subject to adjustments downward under certain circumstances. The other fifty percent of such loans may be repaid at any time without prepayment penalty. On September 30, 2019, the Company's restricted cash balance under the senior credit facility was $56.2 million. The Company classifies cash as restricted when there are legal or contractual restrictions on its withdrawal or usage. First-Lien Term Loans On June 15, 2017, the Company entered into the first lien term loan agreement (as amended, amended and restated, supplemented or otherwise modified from time to time, the First Lien Term Loan Agreement), by and among the Company, as Parent Borrower, Hornbeck Offshore Services, LLC, or HOS, as Co-Borrower, certain holders of the Company’s then outstanding notes, or the First-Lien Initial Lenders, and Wilmington Trust, National Association, as Administrative Agent and Collateral Agent for the lenders that initially provided for $300 million of first-lien delayed-draw term loans, or the first-lien term loans. On March 1, 2019, the Company entered into Incremental First Lien Term Loan Joinder Agreements with such parties, including certain existing as well as additional lenders, to borrow an additional $50.0 million of first-lien term loans, or the incremental first-lien term loans, under the First Lien Term Loan Agreement, including approximately $30.1 million in cash of new financing. On March 1, 2019, the Company exchanged approximately $21.0 million in face value of its 2019 convertible senior notes in a privately negotiated debt-for-debt exchange for the remaining approximately $19.9 million of incremental first-lien term loans. In accordance with applicable accounting guidance, this debt-for-debt exchange was accounted for as a debt modification. As a result, the Company recorded a loss on early extinguishment of debt of $1.3 million ( $1.1 million or $0.03 per diluted share after-tax) due to deal costs associated with the exchange. The incremental first-lien term loans have the same terms applicable to the first-lien term loans originally issued under the existing First Lien Term Loan Agreement. The Company can use the amounts under the first-lien term loans for working capital and general corporate purposes, including acquisitions and/or the refinancing of existing debt, subject to, among other things, compliance with certain covenants requiring the Company to maintain access to liquidity (cash and credit availability) of $25.0 million at all times. The minimum liquidity level required for prepayment of the Company’s existing indebtedness and/or certain other restricted payments is $65.0 million. The first-lien term loans are guaranteed by certain of the Company's domestic and foreign subsidiaries and are collateralized on a first-lien basis by certain deposit and securities accounts, 46 domestic high-spec OSVs and MPSVs and nine foreign high-spec OSVs, including a security interest in two pending MPSV newbuilds, and associated personalty, as well as by second-priority liens on receivables, certain unrestricted cash accounts and related assets that secure the senior credit facility on a first-lien basis. Borrowings accrue interest, at the Company’s option, at either: • an adjusted London Interbank Offered Rate (subject to a 1.00 % floor) plus (a) 6.00 % during the first year of the first-lien term loans, (b) 6.50 % during the second year of the first-lien term loans, (c) 7.00 % during the third year of the first-lien term loans, (d) 7.25 % during the fourth year of the first-lien term loans, and (e) 7.50 % thereafter; or • the greatest of (a) the prime rate announced by The Wall Street Journal, (b) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1%, and (c) the London Interbank Offered Rate plus, 1%, plus, for either (a), (b), or (c), a margin of (i) 5.00 % during the first year of the first-lien term loans, (ii) 5.50 % during the second year of the first-lien term loans, (iii) 6.00 % during the third year of the first-lien term loans, (iv) 6.25 % during the fourth year of the first-lien term loans, and (v) 6.50 % thereafter. Second-Lien Term Loans In February and March 2019, the Company completed two private offers and exchanged an aggregate of $142.6 million in face value of its 2020 senior notes for $121.2 million of second-lien term loans due 2025, or second-lien term loans, of the Company and the Co-Borrower. In accordance with applicable accounting guidance, this debt-for-debt exchange was accounted for as a debt modification. As a result, the Company recorded a loss on early extinguishment of debt of $2.4 million ( $1.9 million or $0.05 per diluted share after-tax) primarily related to deal costs associated with the exchange. As contemplated by and provided for under the agreement governing the first-lien term loans, the second-lien term loans were made pursuant to a Second Lien Term Loan Agreement entered into by the Company, the Co-Borrower, the lenders party thereto and the Administrative Agent and Collateral Agent. The second-lien term loans have a maturity date of February 7, 2025 and bear interest at a fixed rate per annum of 9.50% . The second-lien term loans are guaranteed by certain of the Company’s domestic and foreign subsidiaries and are collateralized on a second-lien basis, subject to certain permitted liens, by a second-priority interest in the same collateral securing the Company’s first-lien term loans on a first-lien basis and third priority liens on receivables, certain unrestricted cash accounts and related assets that secure the senior credit facility on a first-lien basis. Convertible Note Repurchases and Repayment During the nine months ended September 30, 2019 , the Company completed a series of private transactions for the repurchase of $52.9 million in face value of its outstanding 2019 convertible senior notes for an aggregate total of $47.6 million of cash. The Company recorded a gain on early extinguishment of debt of $3.6 million ( $2.9 million or $0.08 per diluted share after-tax), which was comprised of a $5.6 million gain on the repurchase, offset in part by the write-off of $2.0 million of original issue discount, deal costs and unamortized financing costs related to the notes repurchased. On September 3, 2019, the Company repaid the remaining balance of $25.8 million in face value of its 2019 convertible senior notes in full upon their maturity, plus accrued and unpaid interest thereon, in accordance with the terms of the indenture governing such notes. The retirement of this debt was funded with cash on hand. The agreements governing the first-lien term loans and the second-lien term loans, the senior credit facility and the indentures governing the Company's 2020 senior notes and 2021 senior notes impose certain restrictions on the Company. Such restrictions affect, and in many cases limit or prohibit, among other things, the Company's ability to incur additional indebtedness, make capital expenditures, redeem equity, create liens, sell assets and make dividend or other restricted payments. The Company estimates the fair value of its 2020 senior notes, 2021 senior notes, the first-lien term loans and the second-lien term loans by primarily using quoted market prices. Given the observability of the inputs to these estimates, the Company has assigned a Level 2 of the three-level valuation hierarchy. The interest rate on the senior credit facility is variable and the Company has concluded that face value approximates fair value of such facility as of September 30, 2019 . As of the dates indicated below, the Company had the following face values, carrying values and fair values (in thousands): September 30, 2019 December 31, 2018 Face Value Carrying Value Fair Value Face Value Carrying Value Fair Value 5.875% senior notes due 2020 $ 224,313 $ 223,826 $ 126,131 $ 366,942 $ 365,780 $ 191,727 5.000% senior notes due 2021 450,000 448,554 205,875 450,000 447,827 220,500 1.500% convertible senior notes due 2019 — — — 99,647 96,311 88,125 First-lien term loans due 2023 (1) 350,000 357,112 343,875 300,000 310,018 295,875 Second-lien term loans due 2025 (2) 121,235 140,695 90,320 — — — Senior credit facility (3) 100,000 94,031 100,000 — — — $ 1,245,548 $ 1,264,218 $ 866,201 $ 1,216,589 $ 1,219,936 $ 796,227 (1) The carrying value of the first-lien term loans due 2023 includes a deferred gain of $13,913 less original issue discount and deferred financing costs of $6,801 . (2) The carrying value of the second-lien term loans due 2025 includes a deferred gain of $19,460 . (3) A portion of the senior credit facility matures in 2022 with the balance maturing in 2025. Capitalized Interest During the first quarter of 2018 , the Company notified the shipyard that was constructing the remaining two vessels in the Company's fifth OSV newbuild program that it was terminating the construction contracts for such vessels. The Company did not capitalize any of its interest costs during the nine months ended September 30, 2019 . Upon recommencement of construction of such vessels, the Company intends to resume capitalization of related interest costs. During the nine months ended September 30, 2018 , the Company capitalized approximately $2.3 million of interest costs related to the construction of vessels. |
Incentive Compensation
Incentive Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Incentive Compensation | Incentive Compensation Stock-Based Incentive Compensation Plan On June 20, 2019, the Company received stockholder approval to increase the maximum number of shares available under its long-term compensation plan by 7.0 million . The Company’s stock-based incentive compensation plan now covers a maximum of 11.95 million shares of common stock that allows the Company to grant restricted stock awards, restricted stock unit awards, or collectively restricted stock, stock options, stock appreciation rights and fully-vested common stock to employees and directors. As a result of the approval to increase the number of shares available under this plan, the Company, which has the sole discretion in determining the method of settlement for awards granted under the plan, now has the ability and intent to settle these awards using available shares. Accordingly, the classification of and accounting for 5.1 million outstanding phantom stock units, or PSUs, and 1.6 million stock appreciation rights, or SARs, were modified from cash-settled to stock-settled during the second quarter of 2019. These outstanding awards were granted to Company executives in 2017, 2018 and 2019 and to non-executive employees in 2019. After these settlement modifications were completed, the Company has only 0.2 million awards outstanding that will settle in cash on their respective vesting dates. The remaining vesting provisions of the modified awards were not impacted and, therefore, the Company determined the fair value of the awards on the date of the modification was the same as the date prior to the modification. There was no additional compensation expense recognized at the time of modification. As of September 30, 2019 , taking into account the outstanding awards now anticipated to be stock-settled, the Company has 0.7 million shares of common stock available to be granted under such plan. Restricted Stock During the nine months ended September 30, 2019 , the Company granted 2.4 million time-based PSUs. The compensation expense related to time-based PSUs is amortized over a vesting period of up to three years and is determined based on the market price of the Company’s stock on the date of grant applied to the total shares that are expected to fully vest. All PSUs that remain cash-settled are re-measured quarterly and classified as a liability, due to the originally intended settlement of these awards in cash. As a result of the stockholder approval to increase the number of shares available under its long-term incentive compensation plan, the Company now has the ability to settle certain previously granted PSUs in shares. As such, the value of these awards was determined on the modification date and such expense will not vary in future periods. In addition to the PSUs granted in 2019 , the Company granted performance-based and time-based restricted stock units and phantom restricted stock units in prior years. The PSUs granted in prior years to non-executive employees were not impacted by the June 2019 modification. During the nine months ended September 30, 2019 , the Company issued 292,715 shares of common stock due to vestings of restricted stock units and employee purchases under the Company's Employee Stock Purchase Plan. Stock Appreciation Rights During the nine months ended September 30, 2019 , the Company granted 1.6 million SARs. The SARs vest and become exercisable in three equal annual installments on each of the 1st, 2nd and 3rd anniversaries of the grant date and have a ten -year life. The SARs represent the right to receive, upon exercise, a number of shares of Company common stock, cash, or a combination thereof, at the election of the Company, equal to the product of the aggregate number of shares of Company common stock with respect to which the SAR is exercised and the excess of the fair market value of a share of Company common stock as of the date of exercise over the grant price of $1.38 . On June 20, 2019, the Company determined that it would settle its outstanding SARs in equity rather than cash and such awards are now accounted for as stock-settled SARs. All of the remaining vesting provisions of the SARs are unchanged. The Company estimated the fair value of each SAR on the modification date using the Black-Scholes option-pricing model. As of the modification date, the fair value for the outstanding SARs was $1.02 per share granted. The following assumptions were used to value SARs on the modification date: Expected volatility 89.1 % Expected life 6.0 years Risk-free interest rate 1.9 % Expected dividend yield — % The risk-free interest rate used to value SARs is based on the U.S. Treasury yield curve in effect at the time of grant with maturity dates that coincide with the expected life of the SARs. The Company used the simplified method under GAAP to determine the expected life, since this is the first time the Company issued SARs. The Company's assumption for volatility is based on its historical volatility calculated on the grant date. The impact of stock-based compensation expense charges on the Company’s operating results are reflected in the table below (in thousands, except for per share data): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Loss before income taxes $ 876 $ 4,169 $ 2,535 $ 8,922 Net loss $ 705 $ 3,385 $ 1,980 $ 7,236 Loss per common share: Basic loss per common share $ 0.02 $ 0.09 $ 0.05 $ 0.19 Diluted loss per common share $ 0.02 $ 0.09 $ 0.05 $ 0.19 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Vessel Construction During the first quarter of 2018 , the Company notified the shipyard that was constructing the remaining two vessels in the Company's fifth OSV newbuild program that it was terminating the construction contracts for such vessels based on the shipyard's statements that it would be more than one year late in the delivery of the vessels, among other reasons. On October 2, 2018 , the shipyard filed suit against the Company in the 22nd Judicial District Court for the Parish of St. Tammany in the State of Louisiana, or the Gulf Island Litigation. The shipyard claims that the Company's termination was improper and that the shipyard should be permitted to complete construction of the vessels. Alternatively, the shipyard asserts that if the termination was proper, the Company would owe the shipyard compensation for unpaid work. The Company has responded to the suit and has alleged counter-claims. The Company intends to vigorously defend against the shipyard’s claims and considers them to be without merit. The shipyard has frustrated the Company's ability to complete the vessels at a replacement shipyard by asserting that it has possessory rights over the vessels. The Company disputes these asserted possessory rights and believes that the detention of the vessels, over which the Company has title, is wrongful. On November 5, 2019, the district court denied a preliminary motion for summary judgment to require the shipyard to release its possession of the vessels, which may delay further the ability to complete the vessels at a completion shipyard. Because of the shipyard's detention of the vessels, the timeframe in which the vessels can be completed at a replacement shipyard is also uncertain. The Company received performance bonds from sureties. The sureties have denied the Company's claim under the bonds, but did authorize the Company to select a completion yard and, subject to a reservation of rights, offered to fund the cost to complete the vessels in excess of their contract price of up to the full amount of the performance bond. The Company rejected the sureties' conditional and non-conforming offer. As of the date of termination of the construction contracts, these two remaining vessels, both of which are domestic 400 class MPSVs , were projected to be delivered in the second and third quarters of 2 019, respectively. These projected delivery dates were subsequently amended, for guidance purposes, to be the second and third quarters of 2020. Due to the continued uncertainty of the timing and location of future construction activities, the Company is now updating its forward guidance for the delivery dates related to these vessels to be the second and third quarters of 2021 , respectively. However, the timing of the remaining construction draws remains subject to change commensurate with any potential further delays in the delivery dates of such vessels. The cost of this nearly completed 24 -vessel newbuild program, before construction period interest, is expected to be approximately $1,335.0 million , of which $22.9 million and $35.8 million are currently expected to be incurred in fiscal 2020 and fiscal 2021, respectively. The foregoing amounts do not reflect any potential additional payments to the shipyard in respect of the aforementioned claim. From the inception of this program through September 30, 2019 , the Company had incurred $1,276.3 million , or 95.6% , of total expected project costs. Contingencies In the normal course of its business, the Company becomes involved in various claims and legal proceedings in which monetary damages are sought. It is management's opinion that the Company's liability, if any, under such claims or proceedings would not materially affect the Company's financial position or results of operations. The Company insures against losses relating to its vessels, pollution and third party liabilities, including claims by employees under Section 33 of the Merchant Marine Act of 1920, or the Jones Act. Third party liabilities and pollution claims that relate to vessel operations are covered by the Company’s entry in a mutual protection and indemnity association, or P&I Club, as well as by marine liability policies in excess of the P&I Club’s coverage. The Company provides reserves for any individual claim deductibles for which the Company remains responsible by using an estimation process that considers Company-specific and industry data, as well as management’s experience, assumptions and consultation with outside counsel. As additional information becomes available, the Company will assess the potential liability related to its pending claims and revise its estimates. Although historically revisions to such estimates have not been material, changes in estimates of the potential liability could materially impact the Company’s results of operations, financial position or cash flows. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax benefit rate for the nine months ended September 30, 2019 and 2018 was 21.9% and 18.9% , respectively. The Company's effective tax rate differs from the federal statutory rate due to the establishment of valuation allowances in 2019 and 2018 for state net operating loss, foreign tax credit carryforwards, and nondeductible interest based upon management's conclusion that it is more likely than not such losses and credits will not be realized by their expiration dates. The Company's income tax benefit rate for the nine months ended September 30, 2019 was higher than the benefit rate from the nine months ended September 30, 2018 , because of the reversal of a portion of valuation allowances on state net operating loss carryforwards that the Company now believes will be utilized, due to state law changes in June 2019. During the nine months ended September 30, 2019 , the Company adopted ASU 2018-02 and has elected to reclassify the stranded income tax effects of the Tax Cuts and Jobs Act from accumulated comprehensive income to retained earnings. As a result, a reduction in retained earnings and an increase in accumulated other comprehensive income of $1.9 million was recorded in the nine months ended September 30, 2019 . |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company determines if an agreement is a lease or contains a lease at inception. The lease term may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. ROU assets and the corresponding lease liabilities are recorded at the commencement date based on the present value of lease payments over the expected lease term. The Company uses its incremental borrowing rate, which would be the rate incurred to borrow on a collateralized basis over a similar term in a similar economic environment, to calculate the present value of lease payments. The Company is obligated under certain operating leases for shore-based facilities, office space and temporary housing. Such leases will often include options to extend the lease and the Company will include option periods that, on commencement date, it is reasonably likely that it will exercise. Some leases may require variable lease payments such as real estate taxes and maintenance expenses. These costs are expensed in the period in which they are incurred. None of the Company's leases contain any residual value guarantees. The Company recorded $3.0 million of expense related to leases in general and administrative and operating expenses during the nine months ended September 30, 2019 . The expense recorded for short-term leases was $0.4 million during the nine months ended September 30, 2019 . During the nine months ended September 30, 2019 , the Company recorded operating cash outflows from operating leases of $2.7 million . Annual maturities of operating lease liabilities under non-cancelable leases with terms in excess of one year, as of September 30, 2019 , are as follows (in thousands): Nine Months Ended Remainder of 2019 $ 746 2020 3,073 2021 3,003 2022 3,065 2023 3,122 Thereafter 43,873 Total lease payments 56,882 Less: imputed interest 30,347 Total operating lease liabilities $ 26,535 Weighted-average remaining lease term (in years) 17.3 Weighted-average discount rate 9.0 % |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Standard Description Required Date of Adoption Effect on the financial statements and other significant matters Standards that have been adopted ASU No. 2016-02, "Leases" (Topic 842) This standard requires lessees to recognize a lease liability and a right-of-use asset for all leases (with the exception of short-term leases) at the commencement date. ASU 2016-02 requires a modified retrospective application. Early adoption is permitted. January 1, 2019 The Company adopted this ASU effective January 1, 2019. See further discussion below and in footnote 12. ASU No. 2018-02, "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" This standard allows companies to reclassify items in accumulated other comprehensive income to retained earnings for stranded tax effects resulting from The Tax Cuts and Jobs Act. January 1, 2019 The Company adopted ASU No. 2018-02 on January 1, 2019. This adoption had no material impact on its consolidated financial statements. ASU No. 2018-09, "Codification Improvements" This standard provides clarification, corrects errors in and makes minor improvements to various ASC topics. Many of the amendments in this update have transition guidance with effective dates for annual periods beginning after December 15, 2018, and some amendments do not require transition guidance and are effective upon issuance of this update. January 1, 2019 The Company adopted ASU No. 2018-09 on January 1, 2019. This adoption had no material impact on its consolidated financial statements. ASU No. 2018-11, "Leases" (Topic 842): Targeted Improvements This standard provides for the election of transition methods between the modified retrospective method and the optional transition relief method. The modified retrospective method is applied to all prior reporting periods presented with a cumulative-effect adjustment recorded in the earliest comparative period while the optional transition relief method is applied beginning in the period of adoption with a cumulative-effect adjustment recorded in such period. Also, this standard allows lessors to elect to not separate non-lease components from the associated lease components if certain criteria are met. January 1, 2019 The Company adopted ASU No. 2018-11 on January 1, 2019. See further discussion below. Standards that have not been adopted ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" This standard requires measurement and recognition of expected credit losses for financial assets held. ASU No. 2016-13 requires modified retrospective application. Early adoption is permitted. January 1, 2023 The Company believes that the implementation of this new guidance will not have a material impact on its consolidated financial statements. |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenues | For the three and nine months ended September 30, 2019 and 2018 , the Company recognized revenues as follows (in thousands): Three Months Ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Vessel revenues $ 43,683 $ 49,401 $ 136,192 $ 132,016 Vessel management revenues 8,673 8,039 26,291 23,772 Shore-based facility revenues 474 1,028 1,228 2,698 $ 52,830 $ 58,468 $ 163,711 $ 158,486 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Loss Per Share | The table below reconciles the Company’s loss per share (in thousands, except for per share data): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Net loss $ (41,404 ) $ (31,183 ) $ (109,967 ) $ (94,928 ) Weighted average number of shares of common stock outstanding 37,993 37,595 37,886 37,479 Add: Net effect of dilutive stock options and unvested restricted stock (1)(2)(3) — — — — Weighted average number of dilutive shares of common stock outstanding 37,993 37,595 37,886 37,479 Loss per common share: Basic loss per common share $ (1.09 ) $ (0.83 ) $ (2.90 ) $ (2.53 ) Diluted loss per common share $ (1.09 ) $ (0.83 ) $ (2.90 ) $ (2.53 ) (1) Due to a net loss, the Company excluded from the calculation of loss per share the effect of equity awards representing the rights to acquire 4,683 and 3,659 shares of common stock for the three and nine months ended September 30, 2019 , respectively and 529 shares and 602 shares of common stock for the three and nine months ended September 30, 2018 , respectively. (2) For the nine months ended September 30, 2019 and 2018 and for the three months ended September 2018, the 2019 convertible senior notes were not dilutive, as the average price of the Company’s stock was less than the effective conversion price of such notes. In September 2019, the Company repaid the remaining balance of the 2019 convertible senior notes in full upon their maturity. See Note 8 for further discussion. It was the Company's stated intention to redeem the principal amount of its 2019 convertible senior notes in cash and the Company used the treasury method for determining potential dilution in the diluted earnings per share computation. (3) Dilutive unvested restricted stock units are expected to fluctuate from quarter to quarter depending on the Company’s performance compared to a predetermined set of performance criteria. See Note 9 to these financial statements for further information regarding certain of the Company’s restricted stock grants. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Instrument [Line Items] | |
Outstanding Debt | As of the dates indicated, the Company had the following outstanding debt (in thousands): September 30, December 31, 5.875% senior notes due 2020, net of deferred financing costs of $487 and $1,162 $ 223,826 $ 365,780 5.000% senior notes due 2021, net of deferred financing costs of $1,446 and $2,173 448,554 447,827 1.500% convertible senior notes due 2019, net of original issue discount of $0 and $2,725 and deferred financing costs of $0 and $611 — 96,311 First-lien term loans due 2023, including deferred gain of $13,913 and $15,845, and net of original issue discount of $3,310 and $3,013, and deferred financing costs of $3,491 and $2,814 357,112 310,018 Second-lien term loans due 2025, including deferred gain of $19,460 140,695 — Senior credit facility, net of deferred financing costs of $5,969 94,031 — 1,264,218 1,219,936 Less current maturities (223,826 ) (96,311 ) $ 1,040,392 $ 1,123,625 The table below summarizes the Company's cash interest payments (in thousands): Cash Interest Payments Payment Dates 5.875% senior notes due 2020 $ 6,589 April 1 and October 1 5.000% senior notes due 2021 11,250 March 1 and September 1 First-lien term loans due 2023 2,728 Variable (1) Second-lien term loans due 2025 2,879 January 31, April 30, July 31, and October 31 Senior credit facility 611 Monthly (2) (1) The interest rate on the first-lien term loans is variable based on the Company's election. The amount reflected in this table is the monthly amount payable based on the 30-day LIBOR interest rate that was elected and in effect on September 30, 2019 plus an applicable margin, which is currently 7.00%. Please see further discussion of the variable interest rate below. (2) The interest rate on the senior credit facility is variable based on 30-day LIBOR plus a 5.00% margin. The amount reflected in this table is the monthly amount payable based on the 30-day LIBOR interest rate that was in effect on September 30, 2019 . Please see further discussion of the variable interest rate below. |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | As of the dates indicated below, the Company had the following face values, carrying values and fair values (in thousands): September 30, 2019 December 31, 2018 Face Value Carrying Value Fair Value Face Value Carrying Value Fair Value 5.875% senior notes due 2020 $ 224,313 $ 223,826 $ 126,131 $ 366,942 $ 365,780 $ 191,727 5.000% senior notes due 2021 450,000 448,554 205,875 450,000 447,827 220,500 1.500% convertible senior notes due 2019 — — — 99,647 96,311 88,125 First-lien term loans due 2023 (1) 350,000 357,112 343,875 300,000 310,018 295,875 Second-lien term loans due 2025 (2) 121,235 140,695 90,320 — — — Senior credit facility (3) 100,000 94,031 100,000 — — — $ 1,245,548 $ 1,264,218 $ 866,201 $ 1,216,589 $ 1,219,936 $ 796,227 (1) The carrying value of the first-lien term loans due 2023 includes a deferred gain of $13,913 less original issue discount and deferred financing costs of $6,801 . (2) The carrying value of the second-lien term loans due 2025 includes a deferred gain of $19,460 . |
Incentive Compensation (Tables)
Incentive Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-Based Payment Award, Stock Appreciation Rights, Valuation Assumptions [Table Text Block] | The following assumptions were used to value SARs on the modification date: Expected volatility 89.1 % Expected life 6.0 years Risk-free interest rate 1.9 % Expected dividend yield — % |
Financial Impact of Stock-Based Compensation Expense Charges | The impact of stock-based compensation expense charges on the Company’s operating results are reflected in the table below (in thousands, except for per share data): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Loss before income taxes $ 876 $ 4,169 $ 2,535 $ 8,922 Net loss $ 705 $ 3,385 $ 1,980 $ 7,236 Loss per common share: Basic loss per common share $ 0.02 $ 0.09 $ 0.05 $ 0.19 Diluted loss per common share $ 0.02 $ 0.09 $ 0.05 $ 0.19 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Operating Lease, Liability, Maturity [Table Text Block] | Annual maturities of operating lease liabilities under non-cancelable leases with terms in excess of one year, as of September 30, 2019 , are as follows (in thousands): Nine Months Ended Remainder of 2019 $ 746 2020 3,073 2021 3,003 2022 3,065 2023 3,122 Thereafter 43,873 Total lease payments 56,882 Less: imputed interest 30,347 Total operating lease liabilities $ 26,535 Weighted-average remaining lease term (in years) 17.3 Weighted-average discount rate 9.0 % |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Operating Lease, Right-of-Use Asset | $ 23,237 | $ 24,700 | $ 0 |
Operating Lease, Liability | $ 26,535 | $ 27,700 |
Revenues from Contracts with _3
Revenues from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 52,830 | $ 58,468 | $ 163,711 | $ 158,486 |
Vessel Revenues [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 43,683 | 49,401 | 136,192 | 132,016 |
Vessel Management Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,673 | 8,039 | 26,291 | 23,772 |
Shore-based Facility Revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 474 | $ 1,028 | $ 1,228 | $ 2,698 |
Revenue, Remaining Performance
Revenue, Remaining Performance Obligation (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-09-30 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 5.9 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | 1.5 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Amount | $ 4.4 | ||
Subsequent Event [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months | ||
Subsequent Event [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Loss Per Share (Details)
Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Earnings Per Share [Abstract] | |||||
Net loss | $ (41,404) | $ (31,183) | $ (109,967) | $ (94,928) | |
Weighted average number of shares of common stock outstanding | 37,993 | 37,595 | 37,886 | 37,479 | |
Add: Net effect of dilutive stock options and unvested restricted stock | [1],[2],[3] | 0 | 0 | 0 | 0 |
Weighted average number of dilutive shares of common stock outstanding | 37,993 | 37,595 | 37,886 | 37,479 | |
Loss per common share: | |||||
Basic loss per common share | $ (1.09) | $ (0.83) | $ (2.90) | $ (2.53) | |
Diluted loss per common share | $ (1.09) | $ (0.83) | $ (2.90) | $ (2.53) | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,683 | 529 | 3,659 | 602 | |
[1] | Dilutive unvested restricted stock units are expected to fluctuate from quarter to quarter depending on the Company’s performance compared to a predetermined set of performance criteria. See Note 9 to these financial statements for further information regarding certain of the Company’s restricted stock grants. | ||||
[2] | Due to a net loss, the Company excluded from the calculation of loss per share the effect of equity awards representing the rights to acquire 4,683 and 3,659 shares of common stock for the three and nine months ended September 30, 2019, respectively and 529 shares and 602 shares of common stock for the three and nine months ended September 30, 2018, respectively. | ||||
[3] | For the nine months ended September 30, 2019 and 2018 and for the three months ended September 2018, the 2019 convertible senior notes were not dilutive, as the average price of the Company’s stock was less than the effective conversion price of such notes. In September 2019, the Company repaid the remaining balance of the 2019 convertible senior notes in full upon their maturity. See Note 8 for further discussion. It was the Company's stated intention to redeem the principal amount of its 2019 convertible senior notes in cash and the Company used the treasury method for determining potential dilution in the diluted earnings per share computation. |
Acquisition of Vessels (Details
Acquisition of Vessels (Details) $ in Thousands | May 18, 2018USD ($)Vessel | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) |
Acquisition of Vessels [Abstract] | |||
Number of Vessels Purchased | Vessel | 4 | ||
Cost Of Vessel Purchase | $ 40,900 | $ 0 | $ 40,868 |
Finite-Lived Noncompete Agreements, Gross | $ 4,000 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ / shares in Units, $ in Thousands | Feb. 07, 2025 | Mar. 01, 2020USD ($) | Oct. 31, 2019USD ($) | Oct. 01, 2019USD ($) | Mar. 01, 2019USD ($) | Nov. 30, 2011Vessel | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($)$ / shares | Sep. 30, 2018USD ($) | Dec. 28, 2021 | Sep. 30, 2019USD ($)$ / shares | Sep. 30, 2018USD ($) | Jun. 28, 2021 | Jun. 15, 2021 | Jun. 28, 2020 | Jun. 15, 2020 | Jun. 15, 2019 | Dec. 31, 2018USD ($)Vessel | Jun. 15, 2018 | Jun. 15, 2023 | May 27, 2025 | May 27, 2025 | Jun. 15, 2023 | Sep. 03, 2019USD ($) | Feb. 07, 2019 | Jun. 15, 2017USD ($) | |||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Deferred financing costs | $ 10,906 | $ 10,906 | $ 6,149 | ||||||||||||||||||||||||||
Deferred Gain | 33,373 | 33,373 | 15,845 | ||||||||||||||||||||||||||
Credit Facility | 94,031 | 94,031 | 0 | ||||||||||||||||||||||||||
Debt, carrying value | 1,264,218 | 1,264,218 | 1,219,936 | ||||||||||||||||||||||||||
Long-term Debt, Current Maturities | (223,826) | (223,826) | (96,311) | ||||||||||||||||||||||||||
Restricted Cash | 56,200 | 56,200 | |||||||||||||||||||||||||||
First Lien Credit Facility, Initial Borrowing Capacity | $ 300,000 | ||||||||||||||||||||||||||||
First Lien Credit Facility, Incremental Borrowing Capacity | $ 50,000 | ||||||||||||||||||||||||||||
Proceeds from Lines of Credit | 29,159 | $ 0 | |||||||||||||||||||||||||||
Gain (loss) on early extinguishment of debt | 0 | $ 0 | (71) | 0 | |||||||||||||||||||||||||
Debt instrument, Face Value | 1,245,548 | 1,245,548 | 1,216,589 | ||||||||||||||||||||||||||
Long-term Debt, Fair Value | $ 866,201 | 866,201 | 796,227 | ||||||||||||||||||||||||||
Capitalized interest, approximate amount | 0 | $ 2,300 | |||||||||||||||||||||||||||
First Lien Credit Facility Number Of Vessels Used As Collateral | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Line of Credit Facility, Collateral | 46 | ||||||||||||||||||||||||||||
First Lien Credit Facility Number of High-Spec Foreign OSVs Used as Collateral [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Line of Credit Facility, Collateral | nine | ||||||||||||||||||||||||||||
First Lien Credit Facility Number Of Newbuild MPSVs Used As Collateral [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Line of Credit Facility, Collateral | 2 | ||||||||||||||||||||||||||||
First-Lien Credit Facility Maturing Twenty Twenty Three | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Deferred financing costs | $ 3,491 | $ 3,491 | 2,814 | ||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Jun. 15, 2023 | ||||||||||||||||||||||||||||
Deferred Gain | 13,913 | $ 13,913 | 15,845 | ||||||||||||||||||||||||||
Credit Facility | 357,112 | [1] | 357,112 | [1] | 310,018 | ||||||||||||||||||||||||
Proceeds from Lines of Credit | 30,100 | ||||||||||||||||||||||||||||
Debt Instrument, Exchange Amount | 19,900 | ||||||||||||||||||||||||||||
Gain (loss) on early extinguishment of debt | $ 1,300 | ||||||||||||||||||||||||||||
Extinguishment of Debt, Loss, Net of Tax | $ 1,100 | ||||||||||||||||||||||||||||
Extinguishment of Debt, Loss, Per Share, Net of Tax | $ / shares | $ 0.03 | ||||||||||||||||||||||||||||
First-Lien Credit Facility Covenant Minimum Available Liquidity | 25,000 | 25,000 | |||||||||||||||||||||||||||
First-Lien Credit Facility Covenant Minimum Liquidity For Prepayment | 65,000 | 65,000 | |||||||||||||||||||||||||||
Debt instrument, Face Value | 350,000 | 350,000 | 300,000 | ||||||||||||||||||||||||||
Long-term Debt, Fair Value | $ 343,875 | $ 343,875 | $ 295,875 | ||||||||||||||||||||||||||
Senior Notes 5.875 Percent Due 2020 | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.875% | 5.875% | 5.875% | ||||||||||||||||||||||||||
Debt Instrument, Maturity Date | Apr. 1, 2020 | Apr. 1, 2020 | |||||||||||||||||||||||||||
Deferred financing costs | $ 487 | $ 487 | $ 1,162 | ||||||||||||||||||||||||||
Senior Notes | 223,826 | 223,826 | 365,780 | ||||||||||||||||||||||||||
Debt Instrument, Exchange Amount | 142,600 | ||||||||||||||||||||||||||||
Debt instrument, Face Value | 224,313 | 224,313 | 366,942 | ||||||||||||||||||||||||||
Long-term Debt, Fair Value | $ 126,131 | $ 126,131 | $ 191,727 | ||||||||||||||||||||||||||
Senior Notes 5.000 Percent Due 2021 | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | 5.00% | ||||||||||||||||||||||||||
Debt Instrument, Maturity Date | Mar. 1, 2021 | Mar. 1, 2021 | |||||||||||||||||||||||||||
Deferred financing costs | $ 1,446 | $ 1,446 | $ 2,173 | ||||||||||||||||||||||||||
Senior Notes | 448,554 | 448,554 | 447,827 | ||||||||||||||||||||||||||
Debt instrument, Face Value | 450,000 | 450,000 | 450,000 | ||||||||||||||||||||||||||
Long-term Debt, Fair Value | $ 205,875 | $ 205,875 | $ 220,500 | ||||||||||||||||||||||||||
Convertible 1.500 Percent Senior Notes Due 2019 | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | 1.50% | 1.50% | ||||||||||||||||||||||||||
Debt Instrument, Maturity Date | Sep. 1, 2019 | Sep. 1, 2019 | |||||||||||||||||||||||||||
Deferred financing costs | $ 0 | $ 0 | $ 611 | ||||||||||||||||||||||||||
Senior Notes | 0 | 0 | 96,311 | ||||||||||||||||||||||||||
Debt Instrument, Exchange Amount | $ 21,000 | ||||||||||||||||||||||||||||
Gain (loss) on early extinguishment of debt | 3,600 | ||||||||||||||||||||||||||||
Extinguishment of Debt, Loss, Net of Tax | $ 2,900 | ||||||||||||||||||||||||||||
Extinguishment of Debt, Loss, Per Share, Net of Tax | $ / shares | $ 0.08 | ||||||||||||||||||||||||||||
Extinguishment of Debt, Amount | $ 52,900 | ||||||||||||||||||||||||||||
Debt Instrument, Repurchase Amount | 47,600 | 47,600 | |||||||||||||||||||||||||||
Debt Instrument, Repurchased Face Amount | $ 25,800 | ||||||||||||||||||||||||||||
Debt instrument, Face Value | 0 | 0 | 99,647 | ||||||||||||||||||||||||||
Long-term Debt, Fair Value | 0 | 0 | 88,125 | ||||||||||||||||||||||||||
Second-Lien Credit Facility Maturing Twenty Twenty Five [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.50% | ||||||||||||||||||||||||||||
Deferred Gain | 19,460 | 19,460 | |||||||||||||||||||||||||||
Credit Facility | 140,695 | [2] | 140,695 | [2] | 0 | ||||||||||||||||||||||||
Debt Instrument, Exchange Amount | $ 121,200 | ||||||||||||||||||||||||||||
Gain (loss) on early extinguishment of debt | 2,400 | ||||||||||||||||||||||||||||
Extinguishment of Debt, Loss, Net of Tax | $ 1,900 | ||||||||||||||||||||||||||||
Extinguishment of Debt, Loss, Per Share, Net of Tax | $ / shares | $ 0.05 | ||||||||||||||||||||||||||||
Debt instrument, Face Value | 121,235 | 121,235 | 0 | ||||||||||||||||||||||||||
Long-term Debt, Fair Value | 90,320 | 90,320 | 0 | ||||||||||||||||||||||||||
senior credit facility member [Domain] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Deferred financing costs | 5,969 | 5,969 | |||||||||||||||||||||||||||
Credit Facility | 94,031 | 94,031 | 0 | ||||||||||||||||||||||||||
Debt instrument, Face Value | $ 100,000 | $ 100,000 | $ 0 | ||||||||||||||||||||||||||
Subsequent Event [Member] | First-Lien Credit Facility Maturing Twenty Twenty Three | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Cash Interest Payments | [3] | $ 2,728 | |||||||||||||||||||||||||||
Subsequent Event [Member] | Senior Notes 5.875 Percent Due 2020 | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Cash Interest Payments | $ 6,589 | ||||||||||||||||||||||||||||
Subsequent Event [Member] | Senior Notes 5.000 Percent Due 2021 | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Cash Interest Payments | $ 11,250 | ||||||||||||||||||||||||||||
Subsequent Event [Member] | Second-Lien Credit Facility Maturing Twenty Twenty Five [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt Instrument, Maturity Date | Feb. 7, 2025 | ||||||||||||||||||||||||||||
Cash Interest Payments | 2,879 | ||||||||||||||||||||||||||||
Subsequent Event [Member] | senior credit facility member [Domain] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Cash Interest Payments | [4] | $ 611 | |||||||||||||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 101.00% | 102.00% | 103.00% | 100.00% | |||||||||||||||||||||||||
London Interbank Offered Rate (LIBOR) | First-Lien Credit Facility Maturing Twenty Twenty Three | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 6.50% | 6.00% | |||||||||||||||||||||||||||
London Interbank Offered Rate (LIBOR) | Subsequent Event [Member] | First-Lien Credit Facility Maturing Twenty Twenty Three | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 7.25% | 7.00% | 7.50% | ||||||||||||||||||||||||||
First Lien Credit Facility Floor Interest Rate | 1.00% | ||||||||||||||||||||||||||||
London Interbank Offered Rate (LIBOR) | Subsequent Event [Member] | senior credit facility member [Domain] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 5.00% | ||||||||||||||||||||||||||||
Prime Rate [Member] | First-Lien Credit Facility Maturing Twenty Twenty Three | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 5.50% | 5.00% | |||||||||||||||||||||||||||
Prime Rate [Member] | Subsequent Event [Member] | First-Lien Credit Facility Maturing Twenty Twenty Three | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 6.25% | 6.00% | 6.50% | ||||||||||||||||||||||||||
Newbuild Program Five [Member] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Number Of Vessels | Vessel | 24 | 2 | |||||||||||||||||||||||||||
Receivables Backed [Domain] | senior credit facility member [Domain] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Jun. 28, 2022 | ||||||||||||||||||||||||||||
Cash Backed [Domain] [Domain] | senior credit facility member [Domain] | |||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | May 27, 2025 | ||||||||||||||||||||||||||||
[1] | The carrying value of the first-lien term loans due 2023 includes a deferred gain of $13,913 less original issue discount and deferred financing costs of $6,801. | ||||||||||||||||||||||||||||
[2] | The carrying value of the second-lien term loans due 2025 includes a deferred gain of $19,460. | ||||||||||||||||||||||||||||
[3] | The interest rate on the first-lien term loans is variable based on the Company's election. The amount reflected in this table is the monthly amount payable based on the 30-day LIBOR interest rate that was elected and in effect on September 30, 2019 plus an applicable margin, which is currently 7.00%. Please see further discussion of the variable interest rate below. | ||||||||||||||||||||||||||||
[4] | The interest rate on the senior credit facility is variable based on 30-day LIBOR plus a 5.00% margin. The amount reflected in this table is the monthly amount payable based on the 30-day LIBOR interest rate that was in effect on September 30, 2019. Please see further discussion of the variable interest rate below. |
Cash Interest Payments on Debt
Cash Interest Payments on Debt (Details) - Subsequent Event - USD ($) $ in Thousands | Mar. 01, 2020 | Oct. 31, 2019 | Oct. 01, 2019 | |
Senior Notes 5.875 Percent Due 2020 | ||||
Debt Instrument [Line Items] | ||||
Cash Interest Payments | $ 6,589 | |||
First-Lien Credit Facility Maturing Twenty Twenty Three | ||||
Debt Instrument [Line Items] | ||||
Cash Interest Payments | [1] | $ 2,728 | ||
Senior Notes 5.000 Percent Due 2021 | ||||
Debt Instrument [Line Items] | ||||
Cash Interest Payments | $ 11,250 | |||
Second-Lien Credit Facility Maturing Twenty Twenty Five [Member] | ||||
Debt Instrument [Line Items] | ||||
Cash Interest Payments | 2,879 | |||
senior credit facility member [Domain] | ||||
Debt Instrument [Line Items] | ||||
Cash Interest Payments | [2] | $ 611 | ||
[1] | The interest rate on the first-lien term loans is variable based on the Company's election. The amount reflected in this table is the monthly amount payable based on the 30-day LIBOR interest rate that was elected and in effect on September 30, 2019 plus an applicable margin, which is currently 7.00%. Please see further discussion of the variable interest rate below. | |||
[2] | The interest rate on the senior credit facility is variable based on 30-day LIBOR plus a 5.00% margin. The amount reflected in this table is the monthly amount payable based on the 30-day LIBOR interest rate that was in effect on September 30, 2019. Please see further discussion of the variable interest rate below. |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Feb. 07, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||||
Debt Instrument, unamortized discount | $ 3,310 | $ 3,013 | ||
Long-Term Line of Credit | 94,031 | 0 | ||
Debt, carrying value | 1,264,218 | 1,219,936 | ||
Long-term Debt, Excluding Current Maturities | 1,040,392 | 1,123,625 | ||
Debt Instrument, Face Value | 1,245,548 | 1,216,589 | ||
Long-term Debt, Fair Value | 866,201 | 796,227 | ||
Line of Credit Facility, Fair Value of Amount Outstanding | 100,000 | 0 | ||
First-Lien Credit Facility Maturing Twenty Twenty Three | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, unamortized discount | 3,310 | 3,013 | ||
Long-Term Line of Credit | 357,112 | [1] | 310,018 | |
Debt Instrument, Face Value | 350,000 | 300,000 | ||
Long-term Debt, Fair Value | 343,875 | $ 295,875 | ||
Debt Instrument, Unamortized Discount and Debt Issuance Costs, Net | $ 6,801 | |||
Convertible One Point Five Percent Senior Notes Due Twenty Nineteen [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | 1.50% | ||
Debt Instrument, unamortized discount | $ 0 | $ 2,725 | ||
Senior Notes | 0 | 96,311 | ||
Debt Instrument, Face Value | 0 | 99,647 | ||
Long-term Debt, Fair Value | 0 | 88,125 | ||
Second-Lien Credit Facility Maturing Twenty Twenty Five [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 9.50% | |||
Long-Term Line of Credit | 140,695 | [2] | 0 | |
Debt Instrument, Face Value | 121,235 | 0 | ||
Long-term Debt, Fair Value | 90,320 | 0 | ||
senior credit facility member [Domain] | ||||
Debt Instrument [Line Items] | ||||
Long-Term Line of Credit | 94,031 | 0 | ||
Debt Instrument, Face Value | $ 100,000 | $ 0 | ||
[1] | The carrying value of the first-lien term loans due 2023 includes a deferred gain of $13,913 less original issue discount and deferred financing costs of $6,801. | |||
[2] | The carrying value of the second-lien term loans due 2025 includes a deferred gain of $19,460. |
Incentive Compensation (Details
Incentive Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 20, 2019 | Jun. 30, 2019 | Sep. 30, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 7,000,000 | ||
Stock-based incentive compensation plan, maximum number of shares covered | 11,950,000 | ||
Share-based Payment Arrangement, Plan Modification, Incremental Cost | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 700,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 292,715 | ||
Phantom Share Units (PSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Plan Modification, Number of Shares Affected | 5,100,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 200,000 | ||
Share awards granted in period | 2,401,835 | ||
Stock Appreciation Rights (SARs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Plan Modification, Number of Shares Affected | 1,600,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 1.38 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 1.02 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 89.10% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.90% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | ||
Time Based Restricted Stock [Member] | Phantom Share Units (PSUs) [Member] | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting Period (in years) | 3 years |
Financial Impact of Stock-Based
Financial Impact of Stock-Based Compensation Expense (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Loss before income taxes | $ 876 | $ 4,169 | $ 2,535 | $ 8,922 |
Net loss | $ 705 | $ 3,385 | $ 1,980 | $ 7,236 |
Earnings per share: | ||||
Basic loss per common share | $ 0.02 | $ 0.09 | $ 0.05 | $ 0.19 |
Diluted loss per common share | $ 0.02 | $ 0.09 | $ 0.05 | $ 0.19 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) - Newbuild Program Five [Member] $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Nov. 30, 2011VesselProgram | Sep. 30, 2019USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2018Vessel | |
Commitments and Contingencies Disclosure [Line Items] | |||||
Number Of Vessels | Vessel | 24 | 2 | |||
Number Of Ship Construction Programs | Program | 5 | ||||
Aggregate cost of OSV newbuild program excluding construction period interest | $ 1,335 | ||||
Cost incurred on OSV newbuild program | $ 1,276.3 | ||||
Percentage of total project cost | 95.60% | ||||
Subsequent Event | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Estimated Construction Cost, Year Seven | $ 22.9 | ||||
Estimated Construction Cost, Year Eight | $ 35.8 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Effective Tax Benefit Rate | 21.90% | 18.90% |
AOCI Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | $ 1,872 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Jan. 01, 2019 | |
Leases [Abstract] | ||
Operating Lease, Expense | $ 3,000 | |
short term operating lease expense | 400 | |
Operating Lease, Payments | 2,700 | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | 746 | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 3,073 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 3,003 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 3,065 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 3,122 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 43,873 | |
Lessee, Operating Lease, Liability, Payments, Due | 56,882 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 30,347 | |
Operating Lease, Liability | $ 26,535 | $ 27,700 |
Operating Lease, Weighted Average Remaining Lease Term | 17 years 4 months | |
Operating Lease, Weighted Average Discount Rate, Percent | 9.00% |