UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
the Securities Exchange Act of 1934
Date of
report: May 13, 2011
Commission file number 1- 12874
TEEKAY CORPORATION
(Exact name of Registrant as specified in its charter)
4th Floor, Belvedere Building
69 Pitts Bay Road
Hamilton, HM 08 Bermuda
(Address of principal executive office)
69 Pitts Bay Road
Hamilton, HM 08 Bermuda
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover
Form 20-F or Form 40-F.
| Form 20-F þ | Form 40-F o |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1).
| Yes o | No þ |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7).
| Yes o | No þ |
Item 1 — Information Contained in this Form 6-K Report
THIS REPORT ON FORM 6-K IS HEREBY INCORPORATED BY REFERENCE INTO THE FOLLOWING REGISTRATION
STATEMENTS OF THE COMPANY.
| • | REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 33-97746) FILED WITH THE SEC ON OCTOBER 4, 1995; |
| • | REGISTRATION STATEMENT ON FORM S-8 (NO. 333-42434) FILED WITH THE SEC ON JULY 28, 2000; |
| • | REGISTRATION STATEMENT ON FORM S-8 (NO. 333-119564) FILED WITH THE SEC ON OCTOBER 6, 2004; |
| • | REGISTRATION STATEMENT ON FORM S-8 (NO. 333-147683) FILED WITH THE SEC ON NOVEMBER 28, 2007; AND |
| • | REGISTRATION STATEMENT ON FORM S-8 (NO. 333-166523) FILED WITH THE SEC ON MAY 5, 2010. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
TEEKAY CORPORATION |
||||
| Date: May 13, 2011 | By: | /s/ Vincent Lok | ||
| Vincent Lok | ||||
| Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
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|
TEEKAY CORPORATION | |
| 4th Floor, Belvedere Building, 69 Pitts Bay Road | ||
| Hamilton, HM 08, Bermuda | ||
EARNINGS RELEASE
TEEKAY CORPORATION
REPORTS FIRST QUARTER RESULTS
REPORTS FIRST QUARTER RESULTS
Highlights
| • | First quarter 2011 cash flow from vessel operations of $136.4 million. |
| • | First quarter 2011 adjusted net loss attributable to stockholders of Teekay of $27.9
million, or $0.39 per share (excluding specific items which decreased GAAP net income by $1.8
million, or $0.02 per share). |
| • | Completed sale of remaining 49 percent interest in Teekay Offshore Operating L.P. to Teekay
Offshore Partners for $390 million; Teekay Offshore increased cash distribution by 5.3
percent. |
| • | Agreed to sell 33 percent interest in four Angola LNG carrier newbuildings to Teekay LNG
Partners upon their respective deliveries in 2011 and early 2012. |
| • | Entered into joint venture agreement with Odebrecht to jointly pursue FPSO business in
Brazil. |
| • | Ordered newbuilding FPSO conditional on finalizing a long-term charter contract in the
North Sea. |
| • | Total consolidated liquidity of $2.2 billion as at March 31, 2011, of which $1.1 billion at
Teekay Parent. |
| • | As of May 11, 2011, 2.5 million ($82 million) of Teekay Corporation shares repurchased
under existing $200 million authorization (1.1 million shares or $38 million since February
23, 2011). |
Hamilton, Bermuda, May 12, 2011 — Teekay Corporation (Teekay or the Company) (NYSE: TK) today
reported an adjusted net loss attributable to stockholders of Teekay(1) of $27.9
million, or $0.39 per share, for the quarter ended March 31, 2011, compared to adjusted net loss of
$3.9 million, or $0.05 per share, attributable to the stockholders of Teekay for the same period of
the prior year. Adjusted net loss attributable to stockholders of Teekay excludes a number of
specific items that had the net effect of decreasing GAAP net income by $1.8 million (or $0.02 per
share) for the three months ended March 31, 2011 and decreasing GAAP net income by $10.1 million
(or $0.14 per share) for the three months ended March 31, 2010, as detailed in Appendix A to this
release. Including these items, the Company reported on a GAAP basis, net loss attributable to the
stockholders of Teekay of $29.7 million, or $0.41 per share, for the quarter ended March 31, 2011,
compared to net loss attributable to the stockholders of Teekay of $14.0 million, or $0.19 per
share, for the same period of the prior year. Net revenues(2) for the first quarter of
2011 were $442.9 million, compared to $498.9 million for the same period of the prior year.
On April 4, 2011, the Company declared a cash dividend on its common stock of $0.31625 per share
for the quarter ended March 31, 2011. The cash dividend was paid on April 29, 2011, to all
shareholders of record on April 15, 2011.
| (1) | Adjusted net income (loss) attributable to stockholders of Teekay is a non-GAAP financial
measure. Please refer to Appendix A to this release for a reconciliation of this non-GAAP
measure as used in this release to the most directly comparable financial measure under United
States generally accepted accounting principles (GAAP). |
|
| (2) | Net revenues represents revenues less voyage expenses, which comprise all expenses relating
to certain voyages, including bunker fuel expenses, port fees, cargo loading and unloading
expenses, canal tolls, agency fees and commissions. Net revenues is a non-GAAP financial
measure used by certain investors to measure the financial performance of shipping companies.
Please see the Company’s web site at www.teekay.com for a reconciliation of this
non-GAAP measure as used in this release to the most directly comparable financial measure
under GAAP. |
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“During the first quarter and second quarter to date we have seen strong business
development activity across all of our businesses, led by our offshore business,” commented Peter
Evensen, Teekay Corporation’s President and Chief Executive Officer. “Based on the recent high pace
of offshore project tendering and asset acquisition opportunities, we remain optimistic about the
prospects of our offshore business and are actively pursuing several opportunities in the North Sea
and Brazil offshore markets. Earlier this week, we signed a conditional contact with Samsung to
construct a newbuilding FPSO, subject to finalizing an operating contract with a major oil and gas
company for a new North Sea FPSO project. In Brazil, we recently entered into a joint venture
agreement with Brazil-based Odebrecht to jointly pursue FPSO opportunities in the growing Brazilian
offshore market.”
“We have also seen a pick-up in the global LNG trade with several new projects scheduled to come
on-line in the next few years after a quiet period following the global financial crisis,” Mr.
Evensen continued. “The devastating earthquake and tsunami in Japan has resulted in a renewed
global focus on LNG and an increase in LNG carrier spot rates, which has helped us to secure new
short-term charter contracts on our two smaller LNG carriers, the Arctic Spirit and Polar Spirit,
at attractive rates. While all our other gas carriers are chartered-out on long-term fixed-rate
contracts, we believe that a tighter LNG spot vessel supply-demand balance will lead to an increase
in LNG contract opportunities.”
“Finally, in our conventional tanker business, we realized a slight improvement in average spot
tanker rates in the first quarter compared to the previous quarter, due primarily to the short-term
rate spikes that occurred in late February at the onset of the conflict in Libya. However, based
on the projected tanker supply growth, we continue to expect that 2011 will be a challenging year
for spot tanker rates. We believe that a period of weak spot tanker rates in the near-term will be
a positive for the longer-term balance of tanker supply and demand. In anticipation of this
near-term weakness, Teekay has reduced its spot tanker exposure significantly over the past two
years and additional in-chartered vessels are scheduled to redeliver over the next 18 months,
further reducing our spot tanker exposure and our cash flow breakeven level.”
Mr. Evensen added, “I am also pleased to note that we continue to return capital to shareholders,
making steady progress under our share repurchase program. Since November 2010, we have
repurchased over $82 million of our shares under our existing $200 million authorization, of which
approximately $38 million has occurred since the end of February 2011.”
Recent Offshore Business Developments
Teekay recently entered into a joint venture agreement with Odebrecht Oil & Gas S.A. (a member of
the Odebrecht group) to jointly pursue FPSO projects in Brazil. Teekay is currently working with
Odebrecht on potential project opportunities and intends for Odebrecht to be a 50 percent partner
in the Tiro Sidon FPSO project. Odebrecht is a well-established Brazil-based company that operates
in the engineering and construction, petrochemical, bioenergy, energy, oil and gas, real estate and
environmental engineering sectors, with over 120,000 employees and a presence in over 20 countries.
In addition, Teekay has signed a Letter of Intent with a major oil and gas company to provide a new
harsh weather FPSO which will operate in the North Sea. Over the past several months, the Company
has been involved in the front-end engineering and design (FEED) study for this project and is
currently working torwards finalizing a contract with the customer. In connection with this
project, Teekay recently signed a conditional contract with Samsung Heavy Industries (Samsung) to
construct a newbuilding FPSO unit.
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2
Operating Results
The following tables highlight certain financial information for each of Teekay’s four
publicly-listed entities: Teekay Offshore Partners L.P. (Teekay Offshore) (NYSE: TOO), Teekay LNG
Partners L.P. (Teekay LNG) (NYSE: TGP), Teekay Tankers Ltd. (Teekay Tankers) (NYSE: TNK) and
Teekay, excluding results attributed to Teekay Offshore, Teekay LNG and Teekay Tankers, referred to
herein as Teekay Parent. A brief description of each entity and an analysis of its respective
financial results follow the tables below. Please also refer to the “Fleet List” section below and
Appendix B to this release for further details.
Three Months Ended March 31, 2011
(unaudited)
(unaudited)
| Teekay | Teekay | |||||||||||||||||||||||
| Offshore | Teekay LNG | Teekay | Teekay | Consolidation | Corporation | |||||||||||||||||||
| (in thousands of U.S. dollars) | Partners LP | Partners LP | Tankers Ltd. | Parent | Adjustments | Consolidated | ||||||||||||||||||
Net revenues |
208,306 | 92,849 | 31,134 | 162,465 | (51,856 | ) | 442,898 | |||||||||||||||||
Vessel operating
expense |
75,130 | 20,807 | 9,602 | 56,038 | — | 161,577 | ||||||||||||||||||
Time-charter hire
expense |
20,270 | — | — | 94,617 | (51,856 | ) | 63,031 | |||||||||||||||||
Depreciation and
amortization |
45,570 | 22,349 | 10,784 | 26,335 | — | 105,038 | ||||||||||||||||||
Cash flow from
vessel operation(1)(2) |
91,995 | 67,075 | 18,863 | (41,532 | )(3) | — | 136,401 | |||||||||||||||||
Net debt(4) |
1,681,814 | 1,503,799 | 330,310 | 524,130 | — | 4,040,053 | ||||||||||||||||||
Three Months Ended March 31, 2010
(unaudited)
(unaudited)
| Teekay | Teekay | |||||||||||||||||||||||
| Offshore | Teekay LNG | Teekay | Teekay | Consolidation | Corporation | |||||||||||||||||||
| (in thousands of U.S. dollars) | Partners LP | Partners LP | Tankers Ltd. | Parent | Adjustments | Consolidated | ||||||||||||||||||
Net revenues |
198,625 | 92,351 | 38,285 | 213,122 | (43,532 | ) | 498,851 | |||||||||||||||||
Vessel operating
expense |
63,388 | 21,028 | 11,903 | 58,216 | — | 154,535 | ||||||||||||||||||
Time-charter hire
expense |
25,038 | — | — | 96,271 | (43,532 | ) | 77,777 | |||||||||||||||||
Depreciation and
amortization |
45,008 | 22,156 | 11,634 | 29,432 | — | 108,230 | ||||||||||||||||||
Cash flow from
vessel operation(1)(2) |
89,113 | 62,816 | 16,108 | 35,715 | (3) | — | 203,752 | |||||||||||||||||
Net debt(4) |
1,542,028 | 1,526,528 | 292,176 | 703,317 | — | 4,064,049 | ||||||||||||||||||
| (1) | Cash flow from vessel operations represents income from vessel operations before
depreciation and amortization expense, vessel write-downs, gains and losses on the sale of
vessels and unrealized gains and losses relating to derivatives, but includes realized gains
and losses on the settlement of foreign currency forward contracts. Cash flow from vessel
operations is a non-GAAP financial measure used by certain investors to measure the financial
performance of shipping companies. Please see the Company’s Web site at www.teekay.com for a
reconciliation of this non-GAAP measure as used in this release to the most directly
comparable GAAP financial measure. |
|
| (2) | Excludes the cash flow from vessel operations relating to assets acquired from Teekay Parent
for the periods prior to their acquisition by Teekay Offshore, Teekay LNG and Teekay Tankers,
respectively, as those results are included in the historical results for Teekay Parent. |
|
| (3) | In addition to Teekay Parent’s cash flow from vessel operations, Teekay Parent also receives
cash dividends and distributions from its daughter public companies. For the three months
ended March 31, 2011 and 2010, Teekay Parent received daughter company dividends and
distributions totaling $36.5 million and $52.2 million, respectively. The dividends and
distributions received by Teekay Parent include those made with respect to its general partner
interests in Teekay Offshore and Teekay LNG and its 49 percent interest in Teekay Offshore
Operating L.P., which is controlled by Teekay Offshore, prior to the sale of this interest to
Teekay Offshore on March 8, 2011. Please refer to Appendix D to this release for further
details. |
|
| (4) | Net debt represents current and long-term debt less cash and, if applicable, current and
long-term restricted cash. |
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3
Teekay Offshore Partners L.P.
Teekay Offshore is an international provider of marine transportation, oil production and storage
services to the offshore oil industry through its fleet of 36 shuttle tankers (including five
chartered-in vessels and one committed newbuilding under construction), two floating, production,
storage and offloading (FPSO) units, five floating storage and offtake (FSO) units and 11
conventional oil tankers. Teekay Offshore also has the right to participate in certain other FPSO
and vessel opportunities. As at March 31, 2011, Teekay Parent owned a 36.9 percent interest in
Teekay Offshore (including the 2 percent sole general partner interest).
Cash flow from vessel operations from Teekay Offshore increased to $92.0 million in the first
quarter of 2011, from $89.1 million in the same period of the prior year. This increase was
primarily due to the acquisition of the Amundsen Spirit, the Nansen Spirit and the Cidade de Rio
das Ostras FPSO unit on October 1, 2010, and lower time-charter hire expenses resulting from the
redelivery of two in-chartered vessels to their owners. This was partially offset by lower revenue
resulting from fewer revenue days from vessels operating under contracts of affreightment and $3.9
million of restructuring charges incurred during the quarter in connection with the sale of a FSO
unit and a redelivered vessel.
On March 8, 2011, Teekay Offshore acquired from Teekay the remaining 49 percent interest in Teekay
Offshore Operating L.P. (OPCO) for $390 million. Teekay Offshore financed the acquisition through a
combination of $175 million in cash (less $15 million in distributions made by OPCO to Teekay
between December 31, 2010 and the date of acquisition), and the remainder in the form of the
issuance of 7.6 million common units and associated General Partner interest to Teekay in a private
placement.
For the first quarter of 2011, Teekay Offshore increased its quarterly distribution by 5.3 percent,
to $0.50 per unit. As a result, the cash distribution received by Teekay Parent based on its
common unit ownership and general partnership interest in Teekay Offshore totaled $13.4 million for
the first quarter of 2011, as detailed in Appendix D to this release.
Teekay LNG Partners L.P.
Teekay LNG provides liquefied natural gas (LNG), liquefied petroleum gas (LPG) and crude oil marine
transportation services under long-term, fixed-rate time-charter contracts with major energy and
utility companies through its current fleet of 17 LNG carriers, two LPG carriers and 11
conventional tankers. In addition, Teekay LNG has agreed to acquire one newbuilding LPG carrier
from a subsidiary of IM Skaugen (Skaugen) in 2011, two newbuilding LPG/Multigas carriers from
Teekay Parent in 2011 and a 33 percent interest in four newbuilding LNG carriers from Teekay Parent
in 2011 through early 2012, upon their respective delivery dates. Teekay Parent currently owns a
43.6 percent interest in Teekay LNG (including the 2 percent sole general partner interest).
Cash flow from vessel operations from Teekay LNG during the first quarter of 2011, increased to
$67.1 million from $62.8 million in the same period of the prior year. This increase was primarily
due to the acquisition of two Suezmax tankers and one Handymax tanker from Teekay in the first
quarter of 2010 and fewer off-hire days in the first quarter of 2011 compared to the same period of
the prior year, partially offset by the sale of the Dania Spirit LPG carrier in November 2010.
In March 2011, Teekay LNG agreed to acquire Teekay Parent’s 33 percent interest in four LNG
newbuildings upon their respective delivery dates in 2011 and early 2012. The vessels will each be
chartered-out to the Angola LNG Project, a consortium which includes subsidiaries of Chevron,
Sonangol, BP, Total and ENI, for a period of 20 years concurrent with their respective deliveries.
In April 2011, Teekay LNG completed a public offering of 4.3 million common units, which provided
net proceeds to the partnership of approximately $162 million (including 551,800 common units
issued upon the partial exercise of the underwriter’s overallotment option and the general
partner’s proportionate capital contribution). The net proceeds from the offering were used to
repay a portion of the partnership’s revolving credit facilities, which may be redrawn in the
future to fund the equity component of the partnership’s purchase of the 33 percent interest in the
four Angola LNG carrier newbuildings, as well as fund potential acquisition opportunities.
For the first quarter of 2011, Teekay LNG’s quarterly distribution was $0.63 per unit. As
a result, the cash distribution received by Teekay Parent based on its common unit ownership and
general partnership interest in Teekay LNG totaled $19.1 million for the first quarter of 2011 as
detailed in Appendix D to this release.
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4
Teekay Tankers Ltd.
Teekay Tankers currently owns a fleet of nine Aframax tankers and six Suezmax tankers. In
addition, Teekay Tankers owns a 50 percent interest in a VLCC newbuilding and has invested $115
million in 3-year first priority mortgage loans secured by two VLCC newbuildings which yield an
average of 10 percent per annum. Nine of the 15 vessels are currently employed on fixed-rate time
charters, generally ranging from one to three years in initial duration, with the remaining vessels
trading in Teekay’s spot tanker pools. Based on the existing fleet employment profile, Teekay
Tankers has fixed-rate coverage of approximately 60 percent for the remaining three quarters of
fiscal 2011. Teekay Parent currently owns a 26.0 percent interest in Teekay Tankers (including 100
percent of the outstanding Class B common shares, which together with its current ownership of
Class A common shares, provides Teekay voting control of Teekay Tankers).
Cash flow from vessel operations from Teekay Tankers increased to $18.9 million in the first
quarter of 2011, from $16.1 million in the same period of the prior year, primarily due to an
increase in Teekay Tankers’ average fleet size and the interest income from its investment in the
VLCC mortgage loans. This was partially offset by lower average realized tanker rates for its
time-charter and spot fleets during the first quarter of 2011, compared to the same
period of the prior year.
In February 2011, Teekay Tankers completed an equity offering of 9.9 million Class A common shares
(including 1.3 million shares issued upon the full exercise of the underwriters’ overallotment
option), raising net proceeds of approximately $107 million. Proceeds were used to repay amounts
drawn under Teekay Tankers’ revolving credit facility, which may be redrawn to fund future vessel
acquisitions.
On May 12, 2011, Teekay Tankers declared a first quarter 2010 dividend of $0.25 per share which
will be paid on May 27, 2011 to all shareholders of record on May 20, 2011. As a result, based on
its ownership of Teekay Tankers Class A and Class B shares, the dividend to be paid to Teekay
Parent will total $4.0 million for the first quarter of 2011 as detailed in Appendix D to this
release.
Teekay Parent
In addition to its equity ownership interests in Teekay Offshore, Teekay LNG and Teekay Tankers,
Teekay Parent directly owns a substantial fleet of vessels. As at May 1, 2011, this included 17
conventional tankers and three FPSO units. In addition, Teekay Parent currently has under
construction or conversion one FPSO unit, two Aframax shuttle tankers, two LPG/Multigas carriers,
and a 33 percent interest in four newbuilding LNG carriers. In addition, as at May 1, 2011, Teekay
Parent had 29 chartered-in conventional tankers (including nine vessels owned by its subsidiaries),
two chartered-in LNG carriers owned by Teekay LNG and two chartered-in shuttle tankers owned by
Teekay Offshore.
For the first quarter of 2011, Teekay Parent’s negative cash flow from vessel operations was $41.5
million, compared to positive cash flow from vessel operations of $35.7 million in the same period
of the prior year. The decrease in cash flow is primarily due to the sale of vessels, including
the Cidade de Rio das Ostras FPSO unit to Teekay Offshore in October 2010, two Suezmax tankers and
one Handymax Product tanker to Teekay LNG in March 2010, three Suezmax tankers and two Aframax
tankers to Teekay Tankers during 2010, a non-recurring $30 million retroactive component of revenue
recognized in the first quarter of 2010 related to the signing of the Foinaven FPSO contract
amendment, a one-time pension retirement payment to Teekay’s former President and Chief Executive
Officer in the first quarter of 2011, and a decrease in average realized spot tanker rates for the
first quarter of 2011 compared to the first quarter of 2010.
On February 22, 2011, Teekay Parent invested $70 million in a 3-year first priority mortgage loan
secured by a 2011-built Very Large Crude Carrier (VLCC) owned by an Asia-based shipping company.
The loan earns interest at a rate of 9 percent per annum.
On March 8, 2011, Teekay Parent sold its remaining 49 percent interest in OPCO to Teekay Offshore
for a combination of $175 million in cash (less $15 million in distributions made by OPCO to Teekay
between December 31, 2010 and the date of acquisition) and 7.6 million common units and associated
General Partner interest in Teekay Offshore in a private placement.
In March 2011, Teekay Parent agreed to sell its 33 percent interest in the four Angola newbuilding
LNG carriers to Teekay LNG upon their respective deliveries in 2011 through early 2012.
In April 2011, Teekay Parent entered into short-term fixed-rate contracts for the Arctic Spirit and
Polar Spirit, which are chartered-in from Teekay LNG. Initial contract durations are for six and
four months, respectively, and the Arctic Spirit contract includes two one-year options to extend
at the charterer’s option.
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5
Tanker Market
While average crude tanker freight rates improved slightly in the first quarter of 2011, they
remained generally weak due primarily to an oversupply of vessels relative to demand. Rising bunker
costs throughout the course of the first quarter also had a negative impact on tanker earnings.
However, a number of factors led to a gradual improvement in tanker rates during the course of the
quarter. In the Atlantic, severe ice conditions in the Baltic coupled with disruption to Libyan oil
supply as a result of political unrest, led to volatility in European crude tanker rates,
particularly in February. The decline in Libyan production also prompted OPEC to increase crude oil
production, adding to tanker tonne-mile demand. In the Pacific, the devastating earthquake in Japan
on March 11th led to an increase in fuel and crude oil imports for power generation, which provided
support to Pacific Aframax rates in March and April.
The world tanker fleet grew by 6.5 million deadweight tonnes (mdwt), or 1.4 percent, during the
first quarter of 2011 compared to 5.2 mdwt, or 1.2 percent, in the same period last year. There has
been a notable increase in charterer discrimination against first generation double-hull tankers
with a small number of early 1990s-built vessels sold for scrap in the early part of this year. In
combination with the current weakness in spot tanker rates, the rising trend in scrap steel prices
may lead to an increase in scrapping later in 2011.
According to the International Energy Agency (IEA), global oil demand is expected to reach 89.4
million barrels per day (mb/d) in 2011, an increase of 1.4 mb/d, or 1.6 percent, from 2010 as
global GDP is projected to grow by 4.4 percent in 2011. Growth in global oil demand in 2011 is
expected to arise entirely from non-OECD countries, in particular China where oil demand grew by 10
percent year-on-year in the first quarter of 2011.
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6
Teekay Parent Conventional Tanker Fleet Performance
The following table highlights the operating performance of Teekay Parent owned and in-chartered
conventional tankers participating in the Company’s commercial tonnage pools and vessels on period
out-charters with an initial term greater than one year, measured in net revenues per revenue day
or time-charter equivalent (TCE) rates:
| Three Months Ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2011 | 2010 | 2010 | ||||||||||
Suezmax |
||||||||||||
Gemini Suezmax Pool average spot TCE rate (1) |
$ | 18,671 | $ | 15,564 | $ | 31,940 | ||||||
Spot revenue days (2)(3) |
659 | 398 | 609 | |||||||||
Average time-charter rate (4)(5) |
$ | 27,250 | $ | 24,620 | $ | 27,385 | ||||||
Time-charter revenue days (3)(4) |
401 | 736 | 962 | |||||||||
Aframax |
||||||||||||
Teekay Aframax Pool average spot TCE rate (1)(6)(7) |
$ | 16,299 | $ | 12,659 | $ | 17,824 | ||||||
Spot revenue days (2)(3) |
1,526 | 1,324 | 1,797 | |||||||||
Average time-charter rate(5) |
$ | 23,642 | $ | 22,944 | $ | 26,131 | ||||||
Time-charter revenue days(3) |
723 | 889 | 1,070 | |||||||||
LR2 |
||||||||||||
Taurus LR2 Pool average spot TCE rate(1) |
$ | 14,990 | $ | 13,867 | $ | 15,998 | ||||||
Spot revenue days (2)(3) |
450 | 394 | 360 | |||||||||
MR |
||||||||||||
MR product tanker average spot TCE rate(1) |
— | — | $ | 9,729 | ||||||||
Spot revenue days (2)(3) |
— | — | 135 | |||||||||
Average product tanker time-charter rate(5) |
$ | 26,011 | $ | 25,632 | $ | 26,312 | ||||||
Time-charter revenue days(3) |
270 | 237 | 371 | |||||||||
| (1) | Average spot rates include short-term time-charters and fixed-rate contracts of
affreightment that are initially under a year in duration and third-party vessels trading in
the pools |
|
| (2) | Spot revenue days include total owned and in-chartered vessels in the Teekay Parent fleet,
but exclude pool vessels commercially managed on behalf of third parties. Suezmax spot
revenue days exclude four vessels on back-to-back spot in-charter. |
|
| (3) | Average time-charter rates are adjusted to reflect the vessel-equivalent number of days in
the respective period that any synthetic time-charters (STCs) or forward freight agreements
(FFAs) were in effect. For vessel classes in which STCs and FFAs are in effect, a
corresponding reduction in spot revenue days is made in each of the respective periods. |
|
| (4) | Includes one VLCC on time-charter until March 11, 2011 at a TCE rate of $47,000 per day. |
|
| (5) | Average time-charter rates include realized gains and losses of STCs and FFAs, bunker hedges,
short-term time-charters, and fixed-rate contracts of affreightment that are initially one
year in duration or greater. |
|
| (6) | Excludes vessels greater than 15 years-old. |
|
| (7) | Including items outside of the pool (vessels greater than 15 years-old and realized results
of bunker hedging STCs and FFAs), the average Teekay Aframax spot TCE rate was $12,584 per
day, $11,460 per day and $19,443 per day for the three months ended March 31, 2011, December
31, 2010 and March 31, 2010, respectively. |
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7
Fleet List
As at May 1, 2011, Teekay’s consolidated fleet consisted of 149 vessels, including chartered-in
vessels, newbuildings under construction but excluding vessels managed for third parties, as
summarized in the following table:
| Number of Vessels (1) | ||||||||||||||||
| Owned | Chartered-in | Newbuildings / | ||||||||||||||
| Vessels | Vessels | Conversions | Total | |||||||||||||
Teekay Parent Fleet |
||||||||||||||||
Spot-rate: |
||||||||||||||||
Aframax Tankers (2) |
— | 10 | — | 10 | ||||||||||||
Suezmax Tankers |
5 | 3 | — | 8 | ||||||||||||
VLCC Tankers |
— | 1 | — | 1 | ||||||||||||
LR2 Product Tankers |
2 | 1 | — | 3 | ||||||||||||
Total Teekay Parent Spot Fleet |
7 | 15 | — | 22 | ||||||||||||
Fixed-rate: |
||||||||||||||||
Aframax Tankers (2) |
3 | 4 | — | 7 | ||||||||||||
Suezmax Tankers |
3 | 1 | — | 4 | ||||||||||||
MR Product Tankers |
4 | — | — | 4 | ||||||||||||
LNG Carriers (3) |
— | — | — | — | ||||||||||||
Shuttle Tankers (4) |
— | — | 1 | 1 | ||||||||||||
FPSO Units |
3 | — | 1 | 4 | ||||||||||||
Total Teekay Parent Fixed-rate Fleet |
13 | 5 | 2 | 20 | ||||||||||||
Total Teekay Parent Fleet |
20 | 20 | 2 | 42 | ||||||||||||
Teekay Offshore Fleet |
48 | 5 | 1 | 54 | ||||||||||||
Teekay LNG Fleet |
30 | — | 7 | 37 | ||||||||||||
Teekay Tankers Fleet |
15 | — | 1 | 16 | ||||||||||||
Total Teekay Consolidated Fleet |
113 | 25 | 11 | 149 | ||||||||||||
| (1) | Excludes vessels managed on behalf of third parties. |
|
| (2) | Excludes nine vessels chartered-in from Teekay Offshore Partners. |
|
| (3) | Excludes two LNG carriers chartered-in from Teekay LNG. |
|
| (4) | Excludes two shuttle tankers chartered-in from Teekay Offshore. |
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8
Liquidity and Capital Expenditures
As at March 31, 2011, Teekay had consolidated liquidity of $2.2 billion, consisting of $567.3
million cash and approximately $1.6 billion of undrawn revolving credit facilities, of which $1.1
billion, consisting of $351.0 million cash and $700.9 million of undrawn revolving credit
facilities, is attributable to Teekay Parent. Including pre-arranged newbuilding financing,
Teekay’s total consolidated liquidity was approximately $2.6 billion.
The Company’s remaining capital commitments relating to its portion of newbuildings and conversions
were as follows as at March 31, 2011:
| (in millions) | 2011 | 2012 | 2013 | 2014 | Total | |||||||||||||||
Teekay Offshore |
— | — | — | — | — | |||||||||||||||
Teekay LNG |
$ | 34 | — | — | — | $ | 34 | |||||||||||||
Teekay Tankers |
— | $ | 20 | $ | 20 | — | $ | 40 | ||||||||||||
Teekay Parent |
$ | 457 | $ | 108 | — | — | $ | 565 | ||||||||||||
Total Teekay Corporation Consolidated |
$ | 491 | $ | 128 | $ | 20 | — | $ | 639 | |||||||||||
As indicated above, the Company had total capital expenditure commitments pertaining to
newbuildings and conversions of approximately $639 million remaining as at March 31, 2011, with
pre-arranged financing for approximately $408 million of this amount. The Company expects to
obtain debt financing for the Petrojarl Cidade de Itajai FPSO conversion and the VLCC newbuilding
(through Teekay Tankers’ joint venture with Wah Kwong).
Share Repurchase Program
In October 2010, the Company announced its intention to commence repurchasing shares under the
Company’s $200 million share repurchase authorization. As of May 11, 2011, the Company had
repurchased 2.5 million shares under the Company’s existing authorization representing a total cost
of $82 million. Shares will be repurchased in the open market at times and prices considered
appropriate by the Company. The timing of any purchase and the exact number of shares to be
purchased will be dependent on market conditions.
Availability of 2010 Annual Report
Teekay filed its 2010 Annual Report on Form 20-F with the U.S. Securities and Exchange Commission
(SEC) on April 14, 2011. Copies of this report are available on the Teekay web site, under “SEC
Filings”, at www.teekay.com. Shareholders may request a printed copy of this Annual Report,
including the complete audited financial statements, free of charge by contacting Teekay’s Investor
Relations.
Conference Call
The Company plans to host a conference call on May 12, 2011 at 11:00 a.m. (ET) to discuss its
results for the first quarter of 2011. An accompanying investor presentation will be available on
Teekay’s Web site at www.teekay.com prior to the start of the call. All shareholders and
interested parties are invited to listen to the live conference call by choosing from the following
options:
| • | By dialing (800) 322-8032 or (416) 640-3406, if outside North America, and quoting
conference ID code 3037716. |
| • | By accessing the webcast, which will be available on Teekay’s Web site at
www.teekay.com (the archive will remain on the Web site for a period of 30 days). |
The conference call will be recorded and available until Friday, May 20, 2011. This recording can
be accessed following the live call by dialing (888) 203-1112 or (647) 436-0148, if outside North
America, and entering access code 3037716.
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9
About Teekay
Teekay Corporation transports approximately 10 percent of the world’s seaborne oil, has built a
significant presence in the liquefied natural gas shipping sector through its publicly-listed
subsidiary, Teekay LNG Partners L.P. (NYSE: TGP), is further growing its operations in the offshore
oil production, storage and transportation sector through its publicly-listed subsidiary, Teekay
Offshore Partners L.P. (NYSE: TOO), and continues to expand its conventional tanker business
through its publicly-listed subsidiary, Teekay Tankers Ltd. (NYSE: TNK). With a fleet of
approximately 150 vessels, offices in 16 countries and approximately 6,400 seagoing and shore-based
employees, Teekay provides a comprehensive set of marine services to the world’s leading oil and
gas companies, helping them seamlessly link their upstream energy production to their downstream
processing operations. Teekay’s reputation for safety, quality and innovation has earned it a
position with its customers as The Marine Midstream Company.
Teekay’s common stock is listed on the New York Stock Exchange where it trades under the symbol
“TK”.
For Investor Relations enquiries contact:
Kent Alekson
Tel: +1 (604) 844-6654
Kent Alekson
Tel: +1 (604) 844-6654
Web site: www.teekay.com
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10
TEEKAY CORPORATION
SUMMARY CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands of U.S. dollars, except share and per share data)
SUMMARY CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands of U.S. dollars, except share and per share data)
| Three Months Ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2011 | 2010 | 2010 | ||||||||||
| (unaudited) | (unaudited) | (unaudited) | ||||||||||
REVENUES (1) |
488,024 | 502,709 | 571,401 | |||||||||
OPERATING EXPENSES |
||||||||||||
Voyage expenses (1) |
45,126 | 52,998 | 72,550 | |||||||||
Vessel operating expenses (1)(2) |
161,577 | 165,650 | 154,535 | |||||||||
Time-charter hire expense |
63,031 | 63,342 | 77,777 | |||||||||
Depreciation and amortization |
105,038 | 112,047 | 108,230 | |||||||||
General and administrative (1)(2) |
70,218 | 48,486 | 48,091 | |||||||||
Asset impairments/net loss on vessel sales |
3,593 | 24,195 | 760 | |||||||||
Restructuring charges |
4,961 | 5,178 | 3,783 | |||||||||
| 453,544 | 471,896 | 465,726 | ||||||||||
Income from vessel operations |
34,480 | 30,813 | 105,675 | |||||||||
OTHER ITEMS |
||||||||||||
Interest expense (1) |
(32,794 | ) | (35,177 | ) | (32,152 | ) | ||||||
Interest income (1) |
2,465 | 3,050 | 4,274 | |||||||||
Realized and unrealized gain (loss) on derivative instruments |
23,257 | 140,715 | (87,847 | ) | ||||||||
Income tax (expense) recovery |
(811 | ) | 2,458 | 7,307 | ||||||||
Equity income (loss) from joint ventures (1) |
6,394 | 29,246 | (2,666 | ) | ||||||||
Foreign exchange (loss) gain |
(20,340 | ) | 4,186 | 29,026 | ||||||||
Other income (loss) — net |
94 | 2,323 | (9,686 | ) | ||||||||
Net income |
12,745 | 177,614 | 13,931 | |||||||||
Less: Net (income) attributable to non-controlling interests |
(42,402 | ) | (91,707 | ) | (27,933 | ) | ||||||
Net (loss) income attributable to stockholders of Teekay
Corporation |
(29,657 | ) | 85,907 | (14,002 | ) | |||||||
(Loss) earnings per common share of Teekay |
||||||||||||
- Basic |
$ | (0.41 | ) | $ | 1.18 | $ | (0.19 | ) | ||||
- Diluted |
$ | (0.41 | ) | $ | 1.16 | $ | (0.19 | ) | ||||
Weighted-average number of common shares outstanding |
||||||||||||
- Basic |
71,946,997 | 72,717,002 | 72,788,591 | |||||||||
- Diluted |
71,946,997 | 74,076,588 | 72,788,591 | |||||||||
| (1) | Realized and unrealized gains and losses related to derivative instruments that are not
designated as hedges for accounting purposes are included as a separate line item in the
statements of income (loss). The realized gains (losses) relate to the amounts the Company
actually received or paid to settle such derivative instruments and the unrealized gains
(losses) relate to the change in fair value of such derivative instruments, as detailed in the
table below: |
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11
| Three Months Ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2011 | 2010 | 2010 | ||||||||||
Realized (losses) gains relating to: |
||||||||||||
Interest rate swaps |
(33,996 | ) | (37,681 | ) | (38,586 | ) | ||||||
Interest rate swap resets |
(92,672 | ) | — | — | ||||||||
Foreign currency forward contracts |
||||||||||||
Vessel operating expenses |
1,216 | (654 | ) | 33 | ||||||||
General and administrative expenses |
109 | 543 | (356 | ) | ||||||||
Bunkers, FFAs and other |
49 | (6,558 | ) | (2,149 | ) | |||||||
| (125,294 | ) | (44,350 | ) | (41,058 | ) | |||||||
Unrealized gains (losses) relating to: |
||||||||||||
Interest rate swaps |
141,859 | 179,103 | (45,806 | ) | ||||||||
Foreign currency forward contracts |
6,707 | 523 | (3,217 | ) | ||||||||
Bunkers, FFAs and other |
(14 | ) | 5,439 | 2,234 | ||||||||
| 148,552 | 185,065 | (46,789 | ) | |||||||||
Total realized and unrealized gains (losses) on
non-designated derivative instruments |
23,258 | 140,715 | (87,847 | ) | ||||||||
In addition, equity income (loss) from joint ventures includes net unrealized gains (losses)
from non-designated interest rate swaps held within the joint ventures of $4.2 million, $23.4
million and ($6.1) million for the three months ended March 31, 2011, December 31, 2010, and
March 31, 2010, respectively.
| (2) | The Company has entered into foreign currency forward contracts, which are economic hedges of
vessel operating expenses and general and administrative expenses. Certain of these forward
contracts have been designated as cash flow hedges pursuant to GAAP. Unrealized gains
(losses) arising from hedge ineffectiveness from such forward contracts are reflected in
vessel operating expenses and general and administrative expenses in the above Summary
Consolidated Statements of Income (Loss), as detailed in the table below: |
| Three Months Ended | ||||||||||||
| March 31 | December 31 | March 31 | ||||||||||
| 2011 | 2010 | 2010 | ||||||||||
Vessel operating expenses |
(179 | ) | (52 | ) | (2,082 | ) | ||||||
General and administrative |
95 | (162 | ) | (892 | ) | |||||||
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12
TEEKAY CORPORATION
SUMMARY CONSOLIDATED BALANCE SHEET
(in thousands of U.S. dollars)
SUMMARY CONSOLIDATED BALANCE SHEET
(in thousands of U.S. dollars)
| As at March 31, | As at December 31, | |||||||
| 2011 | 2010 | |||||||
| (unaudited) | (unaudited) | |||||||
ASSETS |
||||||||
Cash and cash equivalents |
567,325 | 779,748 | ||||||
Other current assets |
414,404 | 341,777 | ||||||
Restricted cash — current |
92,733 | 86,559 | ||||||
Restricted cash — long-term |
493,633 | 489,712 | ||||||
Vessels and equipment |
6,491,185 | 6,573,388 | ||||||
Advances on newbuilding contracts/conversions |
261,335 | 197,987 | ||||||
Derivative assets |
87,594 | 83,198 | ||||||
Investment in joint ventures |
220,563 | 207,633 | ||||||
Investment in direct financing leases |
480,248 | 487,516 | ||||||
Investment in term loans |
186,184 | 116,014 | ||||||
Other assets |
182,759 | 188,482 | ||||||
Intangible assets |
151,306 | 155,893 | ||||||
Goodwill |
203,191 | 203,191 | ||||||
Total Assets |
9,832,460 | 9,911,098 | ||||||
LIABILITIES AND EQUITY |
||||||||
Accounts payable and accrued liabilities |
421,851 | 422,109 | ||||||
Other current liabilities |
14,500 | 59 | ||||||
Current portion of long-term debt |
743,019 | 543,890 | ||||||
Long-term debt |
4,450,725 | 4,626,308 | ||||||
Derivative liabilities |
376,417 | 531,235 | ||||||
In process revenue contracts |
185,239 | 196,106 | ||||||
Other long-term liabilities |
216,435 | 217,658 | ||||||
Redeemable non-controlling interest |
40,614 | 41,725 | ||||||
Equity: |
||||||||
Non-controlling interests |
1,544,239 | 1,353,561 | ||||||
Stockholders of Teekay |
1,839,421 | 1,978,447 | ||||||
Total Liabilities and Equity |
9,832,460 | 9,911,098 | ||||||
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13
TEEKAY CORPORATION
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
| Three Months Ended | ||||||||
| March 31 | ||||||||
| 2011 | 2010 | |||||||
| (unaudited) | (unaudited) | |||||||
Cash and cash equivalents provided by (used for) |
||||||||
OPERATING ACTIVITIES |
||||||||
Net operating cash flow |
(84,964 | ) | 94,781 | |||||
FINANCING ACTIVITIES |
||||||||
Net proceeds from long-term debt |
240,185 | 762,275 | ||||||
Scheduled repayments of long-term debt |
(69,893 | ) | (40,304 | ) | ||||
Prepayments of long-term debt |
(165,407 | ) | (609,928 | ) | ||||
Increase in restricted cash |
(4,602 | ) | (428 | ) | ||||
Repurchase of common stock |
(19,888 | ) | — | |||||
Net proceeds from the public offering of Teekay Offshore |
— | 94,114 | ||||||
Net proceeds from the public offering of Teekay Tankers |
107,233 | — | ||||||
Cash dividends paid |
(23,172 | ) | (22,999 | ) | ||||
Distribution from subsidiaries to non-controlling interests |
(48,110 | ) | (33,083 | ) | ||||
Other |
3,862 | 1,974 | ||||||
Net financing cash flow |
20,208 | 151,621 | ||||||
INVESTING ACTIVITIES |
||||||||
Expenditures for vessels and equipment |
(83,822 | ) | (44,696 | ) | ||||
Proceeds from sale of vessels and equipment |
5,055 | 10,045 | ||||||
Investment in term loans |
(70,170 | ) | — | |||||
(Advances) loans to joint ventures |
(1,830 | ) | 651 | |||||
Other |
3,100 | 449 | ||||||
Net investing cash flow |
(147,667 | ) | (33,551 | ) | ||||
(Decrease) increase in cash and cash equivalents |
(212,423 | ) | 212,851 | |||||
Cash and cash equivalents, beginning of the period |
779,748 | 422,510 | ||||||
Cash and cash equivalents, end of the period |
567,325 | 635,361 | ||||||
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14
TEEKAY CORPORATION
APPENDIX A — SPECIFIC ITEMS AFFECTING NET (LOSS) INCOME
(in thousands of U.S. dollars, except per share data)
APPENDIX A — SPECIFIC ITEMS AFFECTING NET (LOSS) INCOME
(in thousands of U.S. dollars, except per share data)
Set forth below is a reconciliation of the Company’s unaudited adjusted net (loss) income
attributable to the stockholders of Teekay, a non-GAAP financial measure, to net income (loss)
attributable to stockholders of Teekay as determined in accordance with GAAP. The Company believes
that, in addition to conventional measures prepared in accordance with GAAP, certain investors use
this information to evaluate the Company’s financial performance. The items below are also
typically excluded by securities analysts in their published estimates of the Company’s financial
results. Adjusted net (loss) income attributable to the stockholders of Teekay is intended to
provide additional information and should not be considered a substitute for measures of
performance prepared in accordance with GAAP.
| Three Months Ended | Three Months Ended | |||||||||||||||
| March 31, 2011 | March 31, 2010 | |||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| $ Per | $ Per | |||||||||||||||
| $ | Share (1) | $ | Share (1) | |||||||||||||
Net income — GAAP basis |
12,745 | 13,931 | ||||||||||||||
Adjust for: Net income attributable to
non-controlling interests |
(42,402 | ) | (27,933 | ) | ||||||||||||
Net loss attributable to stockholders of Teekay |
(29,657 | ) | (0.41 | ) | (14,002 | ) | (0.19 | ) | ||||||||
Add (subtract) specific items affecting net loss: |
||||||||||||||||
Unrealized (gains) losses from derivative instruments (2) |
(152,652 | ) | (2.12 | ) | 55,864 | 0.77 | ||||||||||
Foreign currency exchange losses (gains) (3) |
21,007 | 0.29 | (29,026 | ) | (0.40 | ) | ||||||||||
Deferred income tax expense (recovery) on unrealized foreign
exchange gains (losses) |
6,519 | 0.09 | (3,209 | ) | (0.04 | ) | ||||||||||
Restructuring charges (4) |
4,961 | 0.07 | 3,783 | 0.05 | ||||||||||||
Loss on sale of vessels and equipment and asset impairments |
3,593 | 0.05 | 760 | 0.01 | ||||||||||||
Adjustments to pension accruals and stock-based compensation (5) |
18,102 | 0.25 | — | — | ||||||||||||
Revenue recognized on signing of contract amendment (6) |
— | — | (30,000 | ) | (0.41 | ) | ||||||||||
Loss on bond repurchase (8.875 percent notes due 2011) |
— | — | 12,108 | 0.17 | ||||||||||||
Upfront payments related to interest rate swap resets |
92,672 | 1.29 | — | — | ||||||||||||
Other — net(7) |
(3,634 | ) | (0.05 | ) | — | — | ||||||||||
Non-controlling interests’ share of items above |
11,216 | 0.15 | (168 | ) | (0.01 | ) | ||||||||||
Total adjustments |
1,784 | 0.02 | 10,112 | 0.14 | ||||||||||||
Adjusted net loss attributable to stockholders of Teekay |
(27,873 | ) | (0.39 | ) | (3,890 | ) | (0.05 | ) | ||||||||
| (1) | Fully diluted per share amounts. |
|
| (2) | Reflects the unrealized gains or losses relating to the change in the mark-to-market value of
derivative instruments that are not designated as hedges for accounting purposes, including
those included in equity income (loss) from joint ventures, and the ineffective portion of
foreign currency forward contracts designated as hedges for accounting purposes. |
|
| (3) | Foreign currency exchange gains and losses primarily relate to the Company’s debt denominated
in Euros and deferred tax liability denominated in Norwegian Kroner. Nearly all of the
Company’s foreign currency exchange gains and losses are unrealized. |
|
| (4) | Restructuring charges relate to crew changes, reflagging of certain vessels and global
staffing changes. |
|
| (5) | Relates to one-time pension retirement payment to the Company’s former President and Chief
Executive Officer and accelerated timing of accounting recognition of stock-based compensation
expense. |
|
| (6) | Reflects the retroactive component of revenue recognized in the first quarter of 2010 related
to the signing of the Foinaven FPSO contract amendment on March 30, 2010. |
|
| (7) | Relates to non-recurring adjustments to tax accruals. |
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15
TEEKAY CORPORATION
APPENDIX B — SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY BALANCE SHEET AS AT MARCH 31, 2011
APPENDIX B — SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY BALANCE SHEET AS AT MARCH 31, 2011
(in thousands of U.S. dollars)
(unaudited)
(unaudited)
| Teekay | Teekay | Teekay | Teekay | Consolidation | ||||||||||||||||||||
| Offshore | LNG | Tankers | Parent | Adjustments | Total | |||||||||||||||||||
ASSETS |
||||||||||||||||||||||||
Cash and cash equivalents |
123,422 | 72,612 | 20,268 | 351,023 | — | 567,325 | ||||||||||||||||||
Other current assets |
116,163 | 23,448 | 11,615 | 263,178 | — | 414,404 | ||||||||||||||||||
Restricted cash (current & non-current) |
— | 581,926 | — | 4,440 | — | 586,366 | ||||||||||||||||||
Vessels and equipment |
2,218,025 | 1,922,164 | 746,980 | 1,604,016 | — | 6,491,185 | ||||||||||||||||||
Advances on newbuilding contracts/conversions |
53,670 | 80,933 | — | 126,732 | — | 261,335 | ||||||||||||||||||
Derivative assets |
21,813 | 50,688 | — | 15,093 | — | 87,594 | ||||||||||||||||||
Investment in joint ventures |
— | 180,868 | 45 | 39,650 | — | 220,563 | ||||||||||||||||||
Investment in direct financing leases |
65,726 | 414,327 | — | 195 | — | 480,248 | ||||||||||||||||||
Investment in term loans |
— | — | 116,184 | 70,000 | — | 186,184 | ||||||||||||||||||
Other assets |
19,286 | 32,389 | 11,621 | 119,463 | — | 182,759 | ||||||||||||||||||
Advances to affiliates |
9,460 | 7,238 | 14,056 | (30,754 | ) | — | — | |||||||||||||||||
Equity investment in subsidiaries |
— | — | — | 476,753 | (476,753 | ) | — | |||||||||||||||||
Intangibles and goodwill |
154,096 | 156,894 | 13,310 | 30,197 | — | 354,497 | ||||||||||||||||||
TOTAL ASSETS |
2,781,661 | 3,523,487 | 934,079 | 3,069,986 | (476,753 | ) | 9,832,460 | |||||||||||||||||
LIABILITIES AND EQUITY |
||||||||||||||||||||||||
Accounts payable and accrued liabilities |
101,491 | 53,594 | 13,434 | 253,332 | — | 421,851 | ||||||||||||||||||
Other current liabilities |
14,500 | — | — | — | — | 14,500 | ||||||||||||||||||
Advances from affiliates |
84,501 | 132,210 | 6,571 | (223,282 | ) | — | — | |||||||||||||||||
Current portion of long-term debt |
137,468 | 557,567 | 1,800 | 46,184 | — | 743,019 | ||||||||||||||||||
Long-term debt |
1,667,768 | 1,600,770 | 348,778 | 833,409 | — | 4,450,725 | ||||||||||||||||||
Derivative liabilities |
144,200 | 167,364 | 16,886 | 47,967 | — | 376,417 | ||||||||||||||||||
In-process revenue contracts |
— | — | 323 | 184,916 | — | 185,239 | ||||||||||||||||||
Other long-term liabilities |
19,794 | 106,563 | 2,883 | 87,195 | — | 216,435 | ||||||||||||||||||
Redeemable non-controlling interest |
40,614 | — | — | — | — | 40,614 | ||||||||||||||||||
Equity: |
||||||||||||||||||||||||
Non-controlling interests (1) |
47,610 | 13,768 | — | 844 | 1,482,017 | 1,544,239 | ||||||||||||||||||
Equity attributable to
stockholders/unitholders of
publicly-listed entities |
523,715 | 891,651 | 543,404 | 1,839,421 | (1,958,770 | ) | 1,839,421 | |||||||||||||||||
TOTAL LIABILITIES AND EQUITY |
2,781,661 | 3,523,487 | 934,079 | 3,069,986 | (476,753 | ) | 9,832,460 | |||||||||||||||||
NET DEBT (2) |
1,681,814 | 1,503,799 | 330,310 | 524,130 | — | 4,040,053 | ||||||||||||||||||
| (1) | Non-controlling interests in the Teekay Offshore and Teekay LNG columns represent the joint
venture partners’ share of joint venture net assets. Non-controlling interest in the
Consolidation Adjustments column represents the public’s share of the net assets of Teekay’s
publicly-traded subsidiaries. |
|
| (2) | Net debt represents current and long-term debt less cash and, if applicable, current and
long-term restricted cash. |
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TEEKAY CORPORATION
APPENDIX B — SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY STATEMENT OF (LOSS) INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2011
APPENDIX B — SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY STATEMENT OF (LOSS) INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2011
(in thousands of U.S. dollars)
(unaudited)
(unaudited)
| Teekay | Teekay | Teekay | Teekay | Consolidation | ||||||||||||||||||||
| Offshore | LNG | Tankers | Parent | Adjustments | Total | |||||||||||||||||||
Revenues |
233,771 | 93,219 | 31,744 | 181,146 | (51,856 | ) | 488,024 | |||||||||||||||||
Voyage expenses |
25,465 | 370 | 610 | 18,681 | — | 45,126 | ||||||||||||||||||
Vessel operating expenses |
75,130 | 20,807 | 9,602 | 56,038 | — | 161,577 | ||||||||||||||||||
Time-charter hire expense |
20,270 | — | — | 94,617 | (51,856 | ) | 63,031 | |||||||||||||||||
Depreciation and amortization |
45,570 | 22,349 | 10,784 | 26,335 | — | 105,038 | ||||||||||||||||||
General and administrative |
18,730 | 6,326 | 2,669 | 42,493 | — | 70,218 | ||||||||||||||||||
vessel sales |
1,071 | — | — | 2,522 | — | 3,593 | ||||||||||||||||||
Restructuring charges |
3,924 | — | — | 1,037 | — | 4,961 | ||||||||||||||||||
Total operating expenses |
190,160 | 49,852 | 23,665 | 241,723 | (51,856 | ) | 453,544 | |||||||||||||||||
Income (loss) from vessel operations |
43,611 | 43,367 | 8,079 | (60,577 | ) | — | 34,480 | |||||||||||||||||
Net interest expense |
(8,340 | ) | (10,176 | ) | (1,146 | ) | (10,667 | ) | — | (30,329 | ) | |||||||||||||
Realized and unrealized gain on
derivative instruments |
10,840 | 10,769 | 453 | 1,195 | — | 23,257 | ||||||||||||||||||
Income tax (expense) recovery |
(2,653 | ) | (836 | ) | — | 2,678 | — | (811 | ) | |||||||||||||||
Equity income (loss) from
joint ventrues |
— | 8,057 | (1 | ) | (1,662 | ) | — | 6,394 | ||||||||||||||||
Equity in earnings of subsidiaries (1) |
— | — | — | 38,426 | (38,426 | ) | — | |||||||||||||||||
Foreign exchange (loss) gain |
(799 | ) | (21,033 | ) | (22 | ) | 1,514 | — | (20,340 | ) | ||||||||||||||
Other — net |
1,310 | (411 | ) | (272 | ) | (533 | ) | — | 94 | |||||||||||||||
Net income (loss) |
43,969 | 29,737 | 7,091 | (29,626 | ) | (38,426 | ) | 12,745 | ||||||||||||||||
Less: Net (income) loss attributable
to non-controlling interests (2) |
(4,085 | ) | 4,619 | — | (31 | ) | (42,905 | ) | (42,402 | ) | ||||||||||||||
Net (loss) income attributable
to stockholders/unitholders
of publicly-listed entities |
39,884 | 34,356 | 7,091 | (29,657 | ) | (81,331 | ) | (29,657 | ) | |||||||||||||||
CASH FLOW FROM VESSEL
OPERATIONS (3)(4) |
91,995 | 67,075 | 18,863 | (41,532 | ) | — | 136,401 | |||||||||||||||||
| (1) | Teekay Corporation’s proportionate share of the net earnings of its publicly-traded
subsidiaries. |
|
| (2) | Net (income) loss attributable to non-controlling interests in the Teekay Offshore and Teekay
LNG columns represent the joint venture partners’ share of the net income (loss) of the
respective joint ventures. Net (income) loss attributable to non-controlling interest in the
Consolidation Adjustments column represents the public’s share of the net income (loss) of
Teekay’s publicly-traded subsidiaries. |
|
| (3) | Cash flow from vessel operations represents income from vessel operations before depreciation
and amortization expense, vessel write-downs, gains or losses on the sale of vessels and
unrealized gains and losses relating to derivatives, but includes realized gains and losses on
the settlement of foreign currency forward contracts. Cash flow from vessel operations is a
non-GAAP financial measure used by certain investors to measure the financial performance of
shipping companies. Please see the Company’s Web site at www.teekay.com for a reconciliation
of this non-GAAP financial measure as used in this release to the most directly comparable
GAAP financial measure. |
|
| (4) | In addition to Teekay Parent’s cash flow from vessel operations, Teekay Parent also receives
cash dividends and distributions from its daughter public companies. For the three months
ended March 31, 2011, Teekay Parent received daughter company cash dividends and distributions
totaling $36.5 million. The dividends and distributions received by Teekay Parent include
those made with respect to its general partner interests in Teekay Offshore and Teekay LNG and
its 49 percent interest in Teekay Offshore Operating L.P., which is controlled by Teekay
Offshore, prior to the sale of this interest to Teekay Offshore on March 8, 2011. Please
refer to Appendix D to this release for further details. |
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TEEKAY CORPORATION
APPENDIX C — SUPPLEMENTAL FINANCIAL INFORMATION
TEEKAY PARENT SUMMARY OPERATING RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2011
(in thousands of U.S. dollars)
(unaudited)
APPENDIX C — SUPPLEMENTAL FINANCIAL INFORMATION
TEEKAY PARENT SUMMARY OPERATING RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2011
(in thousands of U.S. dollars)
(unaudited)
Set forth below is a reconciliation of unaudited cash flow from vessel operations, a non-GAAP
financial measure, to income from vessel operations as determined in accordance with GAAP, for
Teekay Parent’s primary operating segments. The Company believes that, in addition to conventional
measures prepared in accordance with GAAP, certain investors use this information to evaluate
Teekay Parent’s financial performance. Disaggregated cash flow from vessel operations for Teekay
Parent, as provided below, is intended to provide additional information and should not be
considered a substitute for measures of performance prepared in accordance with GAAP.
| Spot | Fixed-rate | Teekay | ||||||||||||||||||
| Conventional | Conventional | Parent | ||||||||||||||||||
| Tanker | Tanker | FPSO | Other (1) | Total | ||||||||||||||||
Revenues |
68,305 | 36,141 | 66,512 | 10,188 | 181,146 | |||||||||||||||
Voyage expenses |
16,955 | 251 | — | 1,475 | 18,681 | |||||||||||||||
Vessel operating expenses |
9,568 | 9,438 | 36,130 | 902 | 56,038 | |||||||||||||||
Time-charter hire expense |
63,462 | 12,613 | 7,866 | 10,676 | 94,617 | |||||||||||||||
Depreciation and amortization |
5,133 | 5,956 | 14,562 | 684 | 26,335 | |||||||||||||||
General and administrative |
10,085 | 4,158 | 9,867 | 18,383 | 42,493 | |||||||||||||||
Asset impairments/net loss on vessel sales |
2,500 | 22 | — | — | 2,522 | |||||||||||||||
Restructuring charges |
5 | (168 | ) | — | 1,200 | 1,037 | ||||||||||||||
Total operating expenses |
107,708 | 32,270 | 68,425 | 33,320 | 241,723 | |||||||||||||||
Income (loss) from vessel operations |
(39,403 | ) | 3,871 | (1,913 | ) | (23,132 | ) | (60,577 | ) | |||||||||||
Reconciliation of income (loss) from vessel
operations to cash flow from vessel operations |
||||||||||||||||||||
Income (loss) from vessel operations |
(39,403 | ) | 3,871 | (1,913 | ) | (23,132 | ) | (60,577 | ) | |||||||||||
Depreciation and amortization |
5,133 | 5,956 | 14,562 | 684 | 26,335 | |||||||||||||||
Asset impairments/loss on vessel sales |
2,500 | 22 | — | — | 2,522 | |||||||||||||||
Amortization of in process revenue contracts and
other |
— | — | (10,798 | ) | — | (10,798 | ) | |||||||||||||
Unrealized losses from the change in fair
value of designated foreign exchange
forward contracts |
— | (12 | ) | 42 | — | 30 | ||||||||||||||
Realized gains (losses) from the
settlements of non-designated foreign
exchange forward
contracts/bunkers/FFAs |
— | 221 | 735 | — | 956 | |||||||||||||||
CASH FLOW FROM VESSEL
OPERATIONS |
(31,770 | ) | 10,058 | 2,628 | (22,448 | ) | (41,532 | ) | ||||||||||||
| (1) | Results of two chartered-in LNG carriers owned by Teekay LNG and one chartered-in FSO unit
owned by Teekay Offshore and includes one-time pension retirement payment to the Company’s
former President and Chief Executive Officer and non-cash stock-based compensation
adjustments. |
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TEEKAY CORPORATION
APPENDIX D — SUPPLEMENTAL FINANCIAL INFORMATION
TEEKAY PARENT FREE CASH FLOW
(in thousands of U.S. dollars)
(unaudited)
APPENDIX D — SUPPLEMENTAL FINANCIAL INFORMATION
TEEKAY PARENT FREE CASH FLOW
(in thousands of U.S. dollars)
(unaudited)
Set forth below is an unaudited calculation of Teekay Parent free cash flow for the three months
ended March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010, and March 31, 2010.
The Company defines free cash flow, a non-GAAP financial measure, as cash flow from vessel
operations attributed to its directly-owned and in-chartered assets, distributions received as a
result of ownership interests in its publicly-traded subsidiaries (Teekay LNG, Teekay Offshore, and
Teekay Tankers), and its 49 percent ownership interest in Teekay Offshore Operating L.P., up to
March 8, 2011, net of interest expense and drydock expenditures in the respective period. For a
reconciliation of Teekay Parent cash flow from vessel operations for the three months ended March
31, 2011 to the most directly comparable financial measure under GAAP please refer to Appendix B or
Appendix C to this release. For a reconciliation of Teekay Parent cash flow from vessel operations
to the most directly comparable GAAP financial measure for the three months ended December 31,
September 30, June 30, and March 31, 2010, please see the Company’s Web site at www.teekay.com.
Teekay Parent free cash flow, as provided below, is intended to provide additional information and
should not be considered a substitute for measures of performance prepared in accordance with GAAP.
| Three Months Ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2011 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||
Teekay Parent cash flow from vessel
operations |
(41,532 | ) | (21,674 | ) | (29,394 | ) | 21,521 | 35,715 | ||||||||||||
Daughter company distributions to
Teekay Parent (1) |
||||||||||||||||||||
Common shares/units (2) |
||||||||||||||||||||
Teekay LNG Partners |
15,881 | 15,881 | 15,125 | 15,125 | 15,125 | |||||||||||||||
Teekay Offshore Partners |
11,181 | 7,030 | 7,030 | 7,030 | 7,030 | |||||||||||||||
Teekay Offshore Operating L.P. (OPCO)
(3) |
— | 15,000 | 15,000 | 16,000 | 20,619 | |||||||||||||||
Teekay Tankers (4) |
4,028 | 3,545 | 4,995 | 5,478 | 5,962 | |||||||||||||||
Total |
31,090 | 41,456 | 42,150 | 43,633 | 48,736 | |||||||||||||||
General partner interest |
||||||||||||||||||||
Teekay LNG Partners |
3,176 | 2,949 | 2,352 | 2,352 | 2,277 | |||||||||||||||
Teekay Offshore Partners |
2,212 | 1,485 | 1,312 | 1,150 | 1,150 | |||||||||||||||
Total |
5,388 | 4,434 | 3,664 | 3,502 | 3,427 | |||||||||||||||
Total Teekay Parent cash flow
before interest and drydock
expenditures |
(5,054 | ) | 24,216 | 16,420 | 68,656 | 87,878 | ||||||||||||||
Less: |
||||||||||||||||||||
Net interest expense (5) |
(19,214 | ) | (25,855 | ) | (27,224 | ) | (30,602 | ) | (23,413 | ) | ||||||||||
Drydock expenditures |
(287 | ) | (7,474 | ) | (4,174 | ) | (1,949 | ) | (339 | ) | ||||||||||
TOTAL TEEKAY PARENT
FREE CASH FLOW |
(24,555 | ) | (9,113 | ) | (14,978 | ) | 36,105 | 64,126 | ||||||||||||
| (1) | Cash dividend and distribution cash flows are shown on an accrual basis for dividends and
distributions declared for the respective period. |
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| (2) | Common share/unit dividend/distribution cash flows to Teekay Parent are based on Teekay
Parent’s ownership on the ex-dividend date for the respective company and period as follows: |
| Three Months Ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2011 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||
Teekay LNG Partners |
||||||||||||||||||||
Distribution per common unit |
$ | 0.63 | $ | 0.63 | $ | 0.60 | $ | 0.60 | $ | 0.60 | ||||||||||
Common units owned by
Teekay Parent |
25,208,274 | 25,208,274 | 25,208,274 | 25,208,274 | 25,208,274 | |||||||||||||||
Total distribution |
$ | 15,881,213 | $ | 15,881,213 | $ | 15,124,964 | $ | 15,124,964 | $ | 15,124,964 | ||||||||||
Teekay Offshore Partners |
||||||||||||||||||||
Distribution per common unit |
$ | 0.50 | $ | 0.475 | $ | 0.475 | $ | 0.475 | $ | 0.475 | ||||||||||
Common units owned by
Teekay Parent |
22,362,814 | 14,800,000 | 14,800,000 | 14,800,000 | 14,800,000 | |||||||||||||||
Total distribution |
$ | 11,181,407 | $ | 7,030,000 | $ | 7,030,000 | $ | 7,030,000 | $ | 7,030,000 | ||||||||||
Teekay Tankers |
||||||||||||||||||||
Dividend per share |
$ | 0.25 | $ | 0.22 | $ | 0.31 | $ | 0.34 | $ | 0.37 | ||||||||||
Shares owned by Teekay Parent (4) |
16,112,244 | 16,112,244 | 16,112,244 | 16,112,244 | 16,112,244 | |||||||||||||||
Total dividend |
$ | 4,028,061 | $ | 3,544,694 | $ | 4,994,796 | $ | 5,478,163 | $ | 5,961,530 | ||||||||||
| (3) | Based on 49 percent interest owned directly by Teekay Parent, prior to March 8, 2011. |
|
| (4) | Includes Class A and Class B shareholdings. |
|
| (5) | Net interest expense includes realized gains and losses on interest rate swaps. Excludes
upfront payment of $92.7 million related to interest rate swap resets for the three months
ended March 31, 2011. |
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FORWARD LOOKING STATEMENTS
This release contains forward-looking statements (as defined in Section 21E of the Securities
Exchange Act of 1934, as amended) which reflect management’s current views with respect to certain
future events and performance, including statements regarding: tanker market fundamentals,
including the balance of supply and demand in the tanker market and the impact of seasonal factors
on spot tanker charter rates; the redelivery of conventional tankers in-chartered by the Company
and the expected impact of these redeliveries on the Company’s exposure to the spot tanker market
and its cash flow breakeven rate; market conditions and their impact on new contract opportunities
and project returns in the offshore business; expectations regarding the award of a new FPSO
operating contract in the North Sea; the impact of the spot rate LNG carrier market conditions on
the availability of new of long-term LNG carrier charter contracts in the future; the expected
total cost of vessels and FPSO units under construction or conversion; scheduled vessel and FPSO
unit delivery and conversion dates and commencement of time-charter contracts for these vessels and
FPSO units; the Company’s future capital expenditure commitments and the financing requirements for
such commitments; and the intention of Company management to continue repurchasing shares under the
Company’s existing $200 million repurchase authorization. The following factors are among those
that could cause actual results to differ materially from the forward-looking statements, which
involve risks and uncertainties, and that should be considered in evaluating any such statement:
changes in production of or demand for oil, petroleum products, LNG and LPG, either generally or in
particular regions; greater or less than anticipated levels of tanker newbuilding orders or greater
or less than anticipated rates of tanker scrapping; changes in trading patterns significantly
affecting overall vessel tonnage requirements; changes in applicable industry laws and regulations
and the timing of their implementation; changes in the typical seasonal variations in tanker
charter rates; changes in the offshore production of oil or demand for shuttle tankers, FSOs and
FPSOs; decreases in oil production by or increased operating expenses for FPSO units; trends in
prevailing charter rates for shuttle tanker and FPSO contract renewals; the potential for early
termination of long-term contracts and inability of the Company to renew or replace long-term
contracts or complete existing contract negotiations; failure to win future FPSO project contracts,
including the potential award of a new FPSO operating contract with a major oil and gas company in
the North Sea; changes affecting the offshore tanker market; shipyard production delays and cost
overruns; changes in the Company’s expenses; the Company’s future capital expenditure requirements
and the inability to secure financing for such requirements; the inability of the Company to
complete vessel sale transactions to its public company subsidiaries or to third parties;
conditions in the United States capital markets; and other factors discussed in Teekay’s filings
from time to time with the SEC, including its Report on Form 20-F for the fiscal year ended
December 31, 2010. The Company expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements contained herein to reflect any
change in the Company’s expectations with respect thereto or any change in events, conditions or
circumstances on which any such statement is based.
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