Hornbeck Offshore Services, Inc 10-Q for FY2021 Q2

Hornbeck Offshore Services, Inc. (HOS)

10-Q 2021-07-28 For: 2021-06-30

Added on April 09, 2026

About this 10-Q

Hornbeck Offshore Services, Inc filed this 10-Q on July 28, 2021, covering the quarter ended June 30, 2021 (FY2021 Q2).

Headline figures

Quarter ended June 30, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $161.94M; down 18.7% from $199.15M a year earlier
Net loss: $13.71M; compared with net income of $5.45M a year earlier
Diluted EPS: -$0.09; compared with $0.04 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


Minnesota		95-3409686
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
3505 West Sam Houston Parkway North
Suite 400
Houston Texas		77043
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	HLX	New York Stock Exchange


Large accelerated filer ☐	Accelerated filer ☑	Non-accelerated filer ☐	Smaller reporting company ☐	Emerging growth company ☐


PART I.	FINANCIAL INFORMATION	PAGE

Item 1.	Financial Statements:	3
	Condensed Consolidated Balance Sheets – June 30, 2021 (Unaudited) and December 31, 2020	3

	Condensed Consolidated Statements of Operations (Unaudited) – Three and six months ended June 30, 2021 and 2020	4

	Condensed Consolidated Statements of Comprehensive Income (Unaudited) – Three and six months ended June 30, 2021 and 2020	5

	Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) – Three months ended June 30, 2021 and 2020	6

	Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) – Six months ended June 30, 2021 and 2020	7

	Condensed Consolidated Statements of Cash Flows (Unaudited) – Six months ended June 30, 2021 and 2020	8

	Notes to Condensed Consolidated Financial Statements (Unaudited)	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	40

Item 4.	Controls and Procedures	41

PART II.	OTHER INFORMATION	41

Item 1.	Legal Proceedings	41

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	41

Item 6.	Exhibits	42

	Signatures	43


	June 30,		December 31,
	2021		2020
ASSETS
Current assets:
Cash and cash equivalents	$	243,911	$	291,320
Restricted cash		71,282		—
Accounts receivable, net of allowance for credit losses of $1,548 and $3,469, respectively		125,569		132,233
Other current assets		78,869		102,092
Total current assets		519,631		525,645
Property and equipment		2,964,068		2,948,907
Less accumulated depreciation		(1,228,891)		(1,165,943)
Property and equipment, net		1,735,177		1,782,964
Operating lease right-of-use assets		125,481		149,656
Other assets, net		37,418		40,013
Total assets	$	2,417,707	$	2,498,278

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	70,105	$	50,022
Accrued liabilities		83,618		87,035
Current maturities of long-term debt		70,492		90,651
Current operating lease liabilities		50,769		51,599
Total current liabilities		274,984		279,307
Long-term debt		265,222		258,912
Operating lease liabilities		76,934		101,009
Deferred tax liabilities		97,906		110,821
Other non-current liabilities		2,601		3,878
Total liabilities		717,647		753,927
Redeemable noncontrolling interests		—		3,855
Shareholders’ equity:
Common stock, no par, 240,000 shares authorized, 150,787 and 150,341 shares issued, respectively		1,288,603		1,327,592
Retained earnings		456,108		464,524
Accumulated other comprehensive loss		(44,651)		(51,620)
Total shareholders’ equity		1,700,060		1,740,496
Total liabilities, redeemable noncontrolling interests and shareholders’ equity	$	2,417,707	$	2,498,278


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Net revenues	$	161,941	$	199,147	$	325,356	$	380,168
Cost of sales		158,811		169,571		307,602		348,582
Gross profit		3,130		29,576		17,754		31,586
Gain (loss) on disposition of assets, net		(646)		473		(646)		473
Goodwill impairment		—		—		—		(6,689)
Selling, general and administrative expenses		(13,425)		(15,855)		(28,604)		(32,203)
Income (loss) from operations		(10,941)		14,194		(11,496)		(6,833)
Net interest expense		(5,919)		(7,063)		(11,972)		(12,809)
Other income (expense), net		960		(2,069)		2,577		(12,496)
Royalty income and other		249		117		2,306		2,296
Income (loss) before income taxes		(15,651)		5,179		(18,585)		(29,842)
Income tax benefit		(1,968)		(271)		(1,852)		(21,364)
Net income (loss)		(13,683)		5,450		(16,733)		(8,478)
Net income (loss) attributable to redeemable noncontrolling interests		26		—		(146)		(1,990)
Net income (loss) attributable to common shareholders	$	(13,709)	$	5,450	$	(16,587)	$	(6,488)

Earnings (loss) per share of common stock:
Basic	$	(0.09)	$	0.04	$	(0.11)	$	(0.06)
Diluted	$	(0.09)	$	0.04	$	(0.11)	$	(0.06)

Weighted average common shares outstanding:
Basic		150,028		148,971		149,982		148,917
Diluted		150,028		149,691		149,982		148,917


						Accumulated
						Other		Total		Redeemable
	Common Stock			Retained		Comprehensive		Shareholders’		Noncontrolling
	Shares	Amount		Earnings		Loss		Equity		Interests
Balance, March 31, 2021	150,715	$	1,286,380	$	468,087	$	(47,007)	$	1,707,460	$	3,960
Net income (loss)	—		—		(13,709)		—		(13,709)		26
Foreign currency translation adjustments	—		—		—		2,356		2,356		12
Accretion of redeemable noncontrolling interests	—		—		1,730		—		1,730		(1,730)
Acquisition of redeemable noncontrolling interests	—		—		—		—		—		(2,268)
Activity in company stock plans, net and other	72		286		—		—		286		—
Share-based compensation	—		1,937		—		—		1,937		—
Balance, June 30, 2021	150,787	$	1,288,603	$	456,108	$	(44,651)	$	1,700,060	$	—


			Facilities and
	Vessels		Equipment		Total
Less than one year	$	52,106	$	5,884	$	57,990
One to two years		49,760		5,185		54,945
Two to three years		13,557		4,722		18,279
Three to four years		—		4,145		4,145
Four to five years		—		1,041		1,041
Over five years		—		4,835		4,835
Total lease payments	$	115,423	$	25,812	$	141,235
Less: imputed interest		(9,021)		(4,511)		(13,532)
Total operating lease liabilities	$	106,402	$	21,301	$	127,703

Current operating lease liabilities	$	45,940	$	4,829	$	50,769
Non-current operating lease liabilities		60,462		16,472		76,934
Total operating lease liabilities	$	106,402	$	21,301	$	127,703


	Term		2022		2023		2026		MARAD
	Loan		Notes		Notes		Notes		Debt		Total
Less than one year	$	28,000	$	35,000	$	—	$	—	$	7,746	$	70,746
One to two years		—		—		—		—		8,133		8,133
Two to three years		—		—		30,000		—		8,538		38,538
Three to four years		—		—		—		—		8,965		8,965
Four to five years		—		—		—		200,000		9,412		209,412
Over five years		—		—		—		—		9,882		9,882
Gross debt		28,000		35,000		30,000		200,000		52,676		345,676
Unamortized debt issuance costs ⁽¹⁾		(95)		(159)		(402)		(6,501)		(2,805)		(9,962)
Total debt		27,905		34,841		29,598		193,499		49,871		335,714
Less current maturities		(27,905)		(34,841)		—		—		(7,746)		(70,492)
Long-term debt	$	—	$	—	$	29,598	$	193,499	$	42,125	$	265,222


	Well				Production		Intercompany		Total
	Intervention		Robotics		Facilities		Eliminations ⁽¹⁾		Revenue
Three months ended June 30, 2021
Short-term	$	76,669	$	21,012	$	—	$	—	$	97,681
Long-term		55,636		10,639		14,218		(16,233)		64,260
Total	$	132,305	$	31,651	$	14,218	$	(16,233)	$	161,941

Three months ended June 30, 2020
Short-term	$	55,368	$	36,084	$	—	$	—	$	91,452
Long-term		90,473		14,752		13,593		(11,123)		107,695
Total	$	145,841	$	50,836	$	13,593	$	(11,123)	$	199,147

Six months ended June 30, 2021
Short-term	$	125,886	$	30,419	$	—	$	—	$	156,305
Long-term		140,187		23,388		30,665		(25,189)		169,051
Total	$	266,073	$	53,807	$	30,665	$	(25,189)	$	325,356

Six months ended June 30, 2020
Short-term	$	137,692	$	58,525	$	—	$	—	$	196,217
Long-term		148,801		27,569		29,134		(21,553)		183,951
Total	$	286,493	$	86,094	$	29,134	$	(21,553)	$	380,168


	Three Months Ended			Three Months Ended
	June 30, 2021			June 30, 2020
	Income		Shares	Income		Shares
Basic:
Net income (loss) attributable to common shareholders	$	(13,709)		$	5,450
Less: Undistributed earnings allocated to participating securities		—			(37)
Accretion of redeemable noncontrolling interests		—			(69)
Net income (loss) available to common shareholders, basic	$	(13,709)	150,028	$	5,344	148,971

Diluted:
Net income (loss) available to common shareholders, basic	$	(13,709)	150,028	$	5,344	148,971
Effect of dilutive securities:
Share-based awards other than participating securities		—	—		—	720
Net income (loss) available to common shareholders, diluted	$	(13,709)	150,028	$	5,344	149,691


		Grant Date
		Fair Value
Date of Grant	Shares/Units	Per Share/Unit		Vesting Period
January 1, 2021 ⁽¹⁾	452,381	$	4.20	33% per year over three years
January 4, 2021 ⁽²⁾	452,381	$	5.33	100% on January 4, 2024
January 4, 2021 ⁽³⁾	14,249	$	4.20	100% on January 1, 2023
April 1, 2021 ⁽³⁾	9,282	$	5.05	100% on January 1, 2023


	2021		2020
AROs at January 1,	$	30,913	$	28,258
Revisions in estimates		(2,631)		—
Accretion expense		48		1,304
AROs at June 30,	$	28,330	$	29,562


	2021		2020
Balance at January 1,	$	3,469	$	—
Additions (reductions) ⁽¹⁾		(76)		2,424
Write-offs ⁽²⁾		(1,845)		—
Adjustments ⁽³⁾		—		785
Balance at June 30,	$	1,548	$	3,209


	June 30, 2021				December 31, 2020
	Principal		Fair		Principal		Fair
	Amount ⁽¹⁾		Value ^{(2) (3)}		Amount ⁽¹⁾		Value ^{(2) (3)}
Term Loan (matures December 2021)	$	28,000	$	27,895	$	29,750	$	28,969
Nordea Q5000 Loan (matured January 2021) ⁽⁴⁾		—		—		53,572		53,598
MARAD Debt (matures February 2027)		52,676		56,542		56,410		62,318
2022 Notes (mature May 2022)		35,000		35,199		35,000		33,513
2023 Notes (mature September 2023)		30,000		29,662		30,000		28,650
2026 Notes (mature February 2026)		200,000		247,359		200,000		211,383
Total debt	$	345,676	$	396,657	$	404,732	$	418,431


	June 30,		December 31,
	2021		2020
Contract assets (Note 7)	$	626	$	2,446
Prepaids		12,536		15,904
Deferred costs (Note 7)		14,084		23,522
Income tax receivable		15,436		20,787
Other receivable (Note 11)		27,518		29,782
Other		8,669		9,651
Total other current assets	$	78,869	$	102,092


	June 30,		December 31,
	2021		2020
Accrued payroll and related benefits	$	26,907	$	24,768
Accrued interest		6,974		7,098
Deferred revenue (Note 7)		9,267		8,140
Asset retirement obligations (Note 11)		28,330		30,913
Other		12,140		16,116
Total accrued liabilities	$	83,618	$	87,035


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Operating lease cost	$	14,839	$	16,106	$	31,055	$	32,429
Variable lease cost		3,635		3,840		7,119		7,052
Short-term lease cost		5,243		9,992		6,975		17,166
Sublease income		(329)		(328)		(678)		(607)
Net lease cost	$	23,388	$	29,610	$	44,471	$	56,040


	Three Months Ended								Six Months Ended
	June 30,								June 30,
	2021				2020				2021				2020
Taxes at U.S. statutory rate	$	(3,287)	21.0	%	$	1,087	21.0	%	$	(3,903)	21.0	%	$	(6,267)	21.0	%
Foreign tax provision		(527)	3.4			(2,166)	(41.8)			(1,465)	7.9			(1,116)	3.7
CARES Act		—	—			580	11.2			—	—			(5,234)	17.6
Subsidiary restructuring		—	—			—	—			—	—			(8,333)	27.9
Other ⁽¹⁾		1,846	(11.8)			228	4.4			3,516	(18.9)			(414)	1.4
Income tax benefit ⁽²⁾	$	(1,968)	12.6	%	$	(271)	(5.2)	%	$	(1,852)	10.0	%	$	(21,364)	71.6	%


	Three Months Ended						Increase/
	June 30,						(Decrease)
	2021			2020			Amount		Percent
Net revenues —
Well Intervention	$	132,305		$	145,841		$	(13,536)	(9)	%
Robotics		31,651			50,836			(19,185)	(38)	%
Production Facilities		14,218			13,593			625	5	%
Intercompany eliminations		(16,233)			(11,123)			(5,110)
	$	161,941		$	199,147		$	(37,206)	(19)	%

Gross profit (loss) —
Well Intervention	$	(2,542)		$	15,287		$	(17,829)	(117)	%
Robotics		2,286			11,092			(8,806)	(79)	%
Production Facilities		5,103			3,670			1,433	39	%
Corporate, eliminations and other		(1,717)			(473)			(1,244)
	$	3,130		$	29,576		$	(26,446)	(89)	%

Gross margin —
Well Intervention		(2)	%		10	%
Robotics		7	%		22	%
Production Facilities		36	%		27	%
Total company		2	%		15	%

Number of vessels or robotics assets ⁽¹⁾ / Utilization ⁽²⁾
Well Intervention vessels		7 / 72	%		7 / 72	%
Robotics assets ⁽³⁾		47 / 36	%		49 / 34	%
Chartered robotics vessels		3 / 93	%		6 / 95	%


			Less Than						More Than
	Total ⁽¹⁾		1 Year		1-3 Years		3-5 Years		5 Years
Term Loan	$	28,000	$	28,000	$	—	$	—	$	—
MARAD debt		52,676		7,746		16,671		18,377		9,882
2022 Notes ⁽²⁾		35,000		35,000		—		—		—
2023 Notes ⁽³⁾		30,000		—		30,000		—		—
2026 Notes ⁽⁴⁾		200,000		—		—		200,000		—
Interest related to debt ⁽⁵⁾		75,121		19,289		31,982		23,684		166
Property and equipment		4,308		4,308		—		—		—
Operating leases ⁽⁶⁾		221,291		96,238		115,032		5,186		4,835
Total cash obligations	$	646,396	$	190,581	$	193,685	$	247,247	$	14,883


				(c)
				Total number	(d)
				of shares	Maximum
	(a)	(b)		purchased as	number of shares
	Total number	Average		part of publicly	that may yet be
	of shares	price paid		announced	purchased under
Period	purchased ⁽¹⁾	per share		program	the program ⁽²⁾
April 1 to April 30, 2021	—	$	—	—	7,743,937
May 1 to May 31, 2021	—		—	—	7,806,628
June 1 to June 30, 2021	—		—	—	7,806,628
	—	$	—	—


Exhibit Number	Description	Filed or Furnished Herewith or Incorporated by Reference from the Following Documents (Registration or File Number)
3.1	2005 Amended and Restated Articles of Incorporation, as amended, of Helix Energy Solutions Group, Inc.	Exhibit 3.1 to the Current Report on Form 8-K filed on March 1, 2006 (000-22739)
3.2	Second Amended and Restated By-Laws of Helix Energy Solutions Group, Inc., as amended.	Exhibit 3.1 to the Current Report on Form 8-K filed on September 28, 2006 (001-32936)
31.1	Certification Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934 by Owen Kratz, Chief Executive Officer.	Filed herewith
31.2	Certification Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934 by Erik Staffeldt, Chief Financial Officer.	Filed herewith
32.1	Certification of Helix’s Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes–Oxley Act of 2002.	Furnished herewith
101.INS	XBRL Instance Document.	The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	Inline XBRL Taxonomy Extension Schema Document.	Filed herewith
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.	Filed herewith
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.	Filed herewith
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.	Filed herewith
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.	Filed herewith
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).	Filed herewith


		HELIX ENERGY SOLUTIONS GROUP, INC.
		(Registrant)

Date: July 28, 2021	By:	/s/ Owen Kratz
		Owen Kratz
		President and Chief Executive Officer
		(Principal Executive Officer)

Date: July 28, 2021	By:	/s/ Erik Staffeldt
		Erik Staffeldt
		Executive Vice President and
		Chief Financial Officer
		(Principal Financial Officer)

	/s/ Owen Kratz
	Owen Kratz
	President and Chief Executive Officer

	/s/ Erik Staffeldt
	Erik Staffeldt
	Executive Vice President and Chief Financial Officer