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Teekay Corporation Reports First Quarter Results HAMILTON, BERMUDA--(MARKET WIRE)--May 14, 2008 -- Teekay Corporation (NYSE:TK - News) - Highlights - Generated cash flow from vessel operations of $184.8 million, up from $138.4 million in the prior quarter - Reported first quarter net income of $15.2 million, or $0.21 per share (including specific items, predominantly unrealized losses relating to foreign exchange translation and interest rate swaps, which decreased net income by $45.6 million, or $0.62 per share)(1) - Completed follow-on equity offering of Teekay LNG Partners L.P. in April 2008 - Repurchased 499,200 shares for $20.5 million Teekay Corporation (Teekay or the Company) today reported net income of $15.2 million, or $0.21 per share, for the quarter ended March 31, 2008, compared to net income of $76.4 million, or $1.02 per share, for the quarter ended March 31, 2007. The results for the quarters ended March 31, 2008 and 2007 included a number of specific items (predominantly unrealized losses relating to foreign exchange translation and interest rate swaps) that had the net effect of decreasing net income by $45.6 million, or $0.62 per share, and by $7.4 million, or $0.10 per share, respectively, as detailed in Appendix A to this release. Net revenues(2) for the first quarter of 2008 increased to $567.7 million from $459.5 million for the same period in 2007, and income from vessel operations decreased to $110.9 million from $125.5 million. Teekay LNG Partners Follow-on Equity Offering On April 23, 2008, Teekay LNG Partners L.P. (Teekay LNG) completed a follow-on public offering of 5.0 million common units at a price of $28.75 per unit, for gross proceeds of $143.75 million. Subsequently, on May 8, 2008, the underwriters exercised 50 percent, or 375,000 common units, of their 30-day over-allotment option resulting in an additional $10.8 million in gross proceeds to Teekay LNG. The underwriters can exercise the remaining amount of their over-allotment option until May 23, 2008. Concurrent with the public offering, Teekay acquired 1.74 million common units of Teekay LNG at the same public offering price for a total cost of $50.0 million. As a result of the above transactions, Teekay LNG has raised gross equity proceeds of $208.7 million (including the general partner's proportionate capital contribution), and Teekay's ownership of Teekay LNG has been reduced from 63.7 percent to 57.7 percent (including its 2 percent general partner interest). The total net proceeds from the offering of approximately $202.5 million will be used to reduce amounts outstanding under Teekay LNG's revolving credit facilities which were, and will be used to fund the acquisitions of the Kenai and RasGas 3 LNG vessels. Supplemental Financial Information Appendix B to this release includes supplemental financial information for each of the Company's publicly-listed subsidiaries, Teekay LNG Partners L.P., Teekay Offshore Partners L.P., Teekay Tankers Ltd., Teekay Petrojarl ASA, and the remaining businesses (referred to as Teekay Corp. Standalone) and the consolidation adjustments required to reconcile to Teekay Corporation's consolidated balance sheet and statement of income as at and for the three months ended March 31, 2008. (1) Please refer to Appendix A to this release for information about specific items affecting net income. (2) Net revenues represents revenues less voyage expenses. 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 GAAP financial measure. Operating Results During the first quarter of 2008, fixed-rate businesses generated approximately 63 percent of the Company's cash flow from vessel operations compared to 65 percent in the first quarter of 2007. The following table highlights certain financial information for Teekay's four main operating segments: the offshore segment, the fixed-rate tanker segment, the liquefied gas segment, and the spot tanker segment (please refer to the "Teekay Fleet" section of this release below and Appendix B for further details):
Three Months Ended March 31, 2008
---------------------------------------------
(unaudited)
Fixed-Rate Liquefied Spot
(in thousands of Offshore Tanker Gas Tanker
U.S. dollars) Segment Segment Segment Segment Total
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Net revenues 219,887 60,135 55,982 231,664 567,668
Vessel operating expenses 86,353 16,370 11,623 31,097 145,443
Time-charter hire expense 35,475 11,720 - 97,726 144,921
Depreciation & amortization 46,074 9,673 14,195 27,765 97,707
Cash flow from vessel
operations(i) 52,065 24,742 38,748 69,227 184,782
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Three Months Ended March 31, 2007
---------------------------------------------
(unaudited)
Fixed-Rate Liquefied Spot
(in thousands of Offshore Tanker Gas Tanker
U.S. dollars) Segment Segment Segment Segment Total
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Net revenues 220,149 44,029 37,472 157,806 459,456
Vessel operating expenses 62,714 11,690 6,458 16,579 97,441
Time-charter hire expense 41,317 3,837 - 53,347 98,501
Depreciation & amortization 45,722 8,468 10,794 14,279 79,263
Cash flow from vessel
operations(i) 67,128 24,026 25,815 64,264 181,233
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(i) Cash flow from vessel operations represents income from vessel
operations before depreciation and amortization expense and vessel
write-downs/(gain) loss on sale of vessels. 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 http://www.teekay.com for a reconciliation of this
non-GAAP measure as used in this release to the most directly
comparable GAAP financial measure.Offshore Segment The Company's offshore segment is comprised of shuttle tankers, floating storage and off-take (FSO) units, and floating production storage and offtake (FPSO) units. Cash flow from vessel operations from the Company's offshore segment decreased to $52.1 million in the first quarter of 2008, compared to $67.1 million in the first quarter of 2007, primarily due to an increase in crewing expenses, the depreciation of the U.S. dollar, and higher than normal vessel repair costs and an associated increase in unscheduled off-hire days in the shuttle tanker fleet. This was partially offset by the transfer of an FSO unit, the Navion Saga, to the Offshore Segment in May 2007 upon its commencement of a three-year time-charter, and the delivery of two shuttle tankers upon their commencement of 13-year charters during 2007. In February 2008, the Siri FPSO was delivered to Brazil and commenced a two-year charter on a milestone heavy crude oil production project for Petroleo Brasileiro S.A. (Petrobras). At that time the FPSO was formally named the Petrojarl Cidade De Rio Das Ostras. The FPSO completed all of its on-field testing, and began to earn its full charter-hire rate in April 2008. Teekay today announced that it has offered to sell an additional 25 percent interest in Teekay Offshore Operating L.P. (OPCO) to Teekay Offshore. The terms of the offer have not yet been finalized and will be subject to the approval of Teekay Offshore's board of directors and Conflicts Committee. If Teekay Offshore accepts this offer, Teekay will still hold a 49 percent direct interest in OPCO. Fixed-Rate Tanker Segment The Company's fixed-rate tanker segment includes its conventional tankers, which are operating on period out-charters with an initial term of three or more years. Cash flow from vessel operations from the Company's fixed-rate tanker segment increased to $24.7 million in the first quarter of 2008, compared to $24.0 million in the first quarter of 2007. This increase was primarily due to an increase in the size of the Company's fixed-rate tanker fleet, partially offset by an increase in vessel crewing costs. Liquefied Gas Segment The liquefied gas segment includes liquefied natural gas (LNG) and liquefied petroleum gas (LPG) carriers. The Company's cash flow from vessel operations from its LNG and LPG carriers during the first quarter of 2008 was $38.7 million compared to $25.8 million in the first quarter of 2007. This increase was primarily due to the acquisition of the two Kenai LNG carriers in December 2007, and the inclusion of the results of two of the three RasGas II LNG carriers for only a portion of the first quarter 2007, since these vessels delivered during that quarter. The first of four RasGas 3 LNG carriers delivered in early May 2008 and the remaining vessels are scheduled to deliver during the second and third quarters of 2008. Teekay has previously agreed to sell its 40 percent interest in these vessels to its subsidiary, Teekay LNG. Teekay announced today that it has agreed to take over the existing shipbuilding contracts for two advanced 12,000 cubic meter Multigas ships capable of carrying LNG, LPG and Ethylene from subsidiaries of IM Skaugen ASA (Skaugen) and Teekay LNG has agreed to acquire the vessels from Teekay upon their delivery. The vessels have a total cost of approximately $94 million and are expected to deliver in the first and second quarters of 2010 and will then immediately commence service on 15-year fixed-rate charters to Skaugen, collectively generating approximately $9.5 million per annum in operating cash flow. Spot Tanker Segment The Company's spot tanker segment includes its conventional tankers, which are operating on voyage and period out-charters with an initial term of less than three years. Cash flow from vessel operations from the Company's spot tanker segment increased to $69.2 million for the first quarter of 2008, from $64.3 million for the first quarter of 2007, primarily due to an increase in the size of the Company's spot tanker fleet, partially offset by an increase in time-charter hire expense and an increase in vessel crewing costs. On a net basis, fleet changes increased the total number of revenue days in the Company's spot tanker segment to 7,848 for the first quarter of 2008, compared to 5,118 for the first quarter of 2007. Revenue days represent the total number of vessel calendar days less off-hire associated with major repairs, drydockings, or mandated surveys. During the first quarter of 2008, spot tanker freight rates strengthened from the previous quarter primarily driven by growing tanker demand, limited fleet growth, and increasing discrimination against single-hull tankers. Early in the second quarter of 2008, freight rates for crude tankers experienced a considerable counter seasonal increase and have thus far averaged above those experienced during the first quarter of 2008. The strength of the spot tanker markets is being driven primarily by higher volumes of crude imports into China (up approximately 15 percent from the prior year), which in turn is driving higher volumes of ton-mile intensive Atlantic to Pacific crude oil movements. In its May 2008 report, the International Energy Agency (or IEA) estimated 2008 oil demand growth of 1.0 million barrels per day (mb/d), a 1.2 percent increase from 2007. Nearly all of the growth in global oil demand in 2008 is expected to originate from energy intensive developing economies which have so far been only marginally affected by the economic slowdown in the United States. The trend of tanker sales for conversion to offshore units and dry bulk vessels continues to dampen tanker supply growth. In addition, record-high scrap steel prices have led to an increase in oil tankers being sold for demolition. The removal of these tankers should help keep tanker supply and demand finely-balanced during the remainder of 2008. The following table highlights the operating performance of the Company's spot tanker segment measured in net revenues per revenue day or time-charter equivalent (TCE), and includes the effect of forward freight agreements (FFAs) which are entered into as hedges against a portion of the Company's exposure to spot market rates or for speculative purposes:
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Three Months Ended
March 31, December 31, March 31,
Spot Tanker Segment 2008 2007 2007
Suezmax Tanker Fleet ------------------------------------
Spot revenue days 553 524 242
Average spot rate(1) $ 46,670 $ 35,645 $ 50,860
Timer Charter revenue days 668 838 182
Average Time Charter rate(2)(3) $ 28,172 $ 30,204 $ 27,307
Aframax Tanker Fleet
Spot revenue days 3,708 3,407 2,678
Average spot rate(1) $ 36,253 $ 25,347 $ 38,006
Timer Charter revenue days 142 - -
Average Time Charter rate(2) $ 31,759 - -
Large/Medium-Size Product
Tanker Fleet
Spot revenue days 1,062 949 859
Average spot rate(1) $ 27,585 $ 21,761 $ 24,470
Timer Charter revenue days 813 828 261
Average Time Charter rate(2) $ 22,794 $ 22,759 $ 29,171
Small Product Tanker Fleet
Spot revenue days 902 900 896
Average spot rate(1) $ 13,745 $ 12,274 $ 16,017
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(1) Average spot rate includes short-term time-charters and fixed-rate
contracts of affreightment less than 1 year, and realized gains and
losses from FFAs less than 1 year.
(2) Average time charter rate includes short-term time charters and
fixed-rate contracts of affreightment between 1-3 years, and realized
gains and losses from synthetic time charters and FFAs between
1-3 years.
(3) Suezmax average time charter rate excludes the cost of spot
in-chartering vessels for COA cargoes.Teekay Fleet As at April 30, 2008, Teekay's fleet consisted of 200 vessels, including chartered-in vessels, and newbuildings on-order, but excluding vessels managed for third parties. The following table summarizes the Teekay fleet as at April 30, 2008:
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Number of Vessels(1)
-----------------------------------------
Owned Chartered-in Newbuildings
Vessels Vessels /Conversions Total
---------------------------------------------------------------------------
Offshore Segment
Shuttle Tankers(2) 28 12 4 44
Floating Storage & Offtake
("FSO") Units(3) 5 - - 5
Floating Production Storage &
Offtake ("FPSO") Units(4) 5 - - 5
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Total Offshore Segment 38 12 4 54
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Fixed-Rate Tanker Segment
Conventional Tankers(5) 17 4 21
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Total Fixed-Rate Tanker
Segment 17 4 21
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Liquefied Gas Segment
LNG Carriers(6) 9 - 10 19
LPG Carriers 1 - 3 4
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Total Liquefied Gas Segment 10 - 13 23
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Spot Tanker Segment
Suezmaxes(7) 6 5 10 21
Aframaxes(8) 21 26 - 47
Large/Medium Product Tankers 12 10 1 23
Small Product Tankers - 10 - 10
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Total Spot Tanker Segment 39 52 11 102
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Total 104 68 28 200
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(1) Excludes vessels managed on behalf of third parties.
(2) Includes six shuttle tankers in which the Company's ownership interest
is 50 percent.
(3) Includes one unit in which the Company's ownership interest is 89
percent.
(4) Includes four FPSOs owned by Teekay Petrojarl ASA, and one FPSO jointly
owned by Teekay and Teekay Petrojarl.
(5) Includes eight Suezmax tankers owned by Teekay LNG.
(6) Seven of the existing LNG vessels are owned by Teekay LNG. Teekay LNG
has agreed to acquire Teekay's 70 percent interest in two of the LNG
newbuildings and Teekay's 40 percent interest in four LNG newbuildings
upon delivery of the vessels. Teekay has offered Teekay LNG the
opportunity to acquire two of the existing LNG vessels.
(7) Includes two Suezmax tankers owned by Teekay Tankers.
(8) Includes nine Aframax tankers owned by Teekay Offshore and chartered to
Teekay and nine Aframaxes owned by Teekay Tankers.Capital Expenditures and Liquidity As of March 31, 2008, the Company's remaining capital commitments relating to its portion of newbuildings and conversions, were as follows: --------------------------------------------------------------------------- (in millions) 2008 2009 2010 2011 2012 Total --------------------------------------------------------------------------- Offshore Segment - $ 23 $ 234 $ 164 - $ 421 --------------------------------------------------------------------------- Fixed-Rate Tanker Segment - - - - - - --------------------------------------------------------------------------- Liquefied Gas Segment 136 113 37 157 45 488 --------------------------------------------------------------------------- Spot Tanker Segment 284 207 - - - 491 --------------------------------------------------------------------------- --------------------------------------------------------------------------- Total $ 420 $ 343 $ 271 $ 321 $ 45 $ 1,400 --------------------------------------------------------------------------- --------------------------------------------------------------------------- Pre-arranged debt facilities are in place for $1.0 billion of these capital commitments. Additionally, as of March 31, 2008, the Company had total liquidity of $1.7 billion (excluding debt related to capital commitments), comprised of $556 million in cash and cash equivalents and $1.1 billion in undrawn credit facilities. Share Repurchase Program Since February 27, 2008, the previous date the Company reported the status of its share repurchase program, the Company has repurchased 499,200 shares of its common stock at an average price of $41.09 per share, resulting in the completion of its existing share repurchase authorization. As at March 31, 2008, the Company had 72.3 million common shares outstanding. About Teekay Teekay Corporation transports more than 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 - News), 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 - News), and continues to expand its conventional tanker business through its publicly-listed subsidiary, Teekay Tankers Ltd. (NYSE:TNK - News). With a fleet of 200 vessels, offices in 22 countries and 6,300 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". Earnings Conference Call The Company plans to host a conference call on Thursday, May 15, 2008 at 11:00 a.m. (ET) to discuss the results for the quarter. All shareholders and interested parties are invited to listen to the live conference call and view the Company's earnings presentation through the Company's web site at www.teekay.com. The Company plans to make available a recording of the conference call until midnight May 21, 2008, by dialing (888) 203-1112 or (647) 436-0148, access code 4357036, or via the Company's web site until June 15, 2008.
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TEEKAY CORPORATION
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(in thousands of U.S. dollars, except share and per share data)
--------------------------------------------------------------------------
Three Months Ended
------------------------------------
March 31, December 31, March 31,
2008 2007 2007
(unaudited) (unaudited) (unaudited)
--------------------------------------------------------------------------
REVENUES 736,391 673,046 578,395
--------------------------------------------------------------------------
OPERATING EXPENSES
Voyage expenses 168,723 158,915 118,939
Vessel operating expenses(1) 145,443 138,243 97,441
Time-charter hire expense 144,921 145,860 98,501
Depreciation and amortization 97,707 94,697 79,263
General and administrative(1) 67,671 60,081 58,797
(Gain) loss on sale of
vessels and equipment (496) 1,055 -
Restructuring charge 1,500 - -
--------------------------------------------------------------------------
625,469 598,851 452,941
--------------------------------------------------------------------------
Income from vessel operations 110,922 74,195 125,454
--------------------------------------------------------------------------
OTHER ITEMS
Interest expense (87,188) (82,009) (60,383)
Interest income 18,359 19,529 16,168
Income tax (expense) recovery (2,726) 11,709 4,082
Equity loss from joint ventures (3,609) (7,063) (1,595)
Foreign exchange loss (29,483) (7,407) (5,888)
Minority interest income (expense) 3,472 (1,284) (5,640)
Other - net 5,431 1,806 4,177
--------------------------------------------------------------------------
(95,744) (64,719) (49,079)
--------------------------------------------------------------------------
Net income 15,178 9,476 76,375
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Earnings per common share
- Basic $ 0.21 $ 0.13 $ 1.04
- Diluted $ 0.21 $ 0.13 $ 1.02
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Weighted-average number of
common shares outstanding
- Basic 72,644,397 72,962,375 73,129,585
- Diluted 73,435,167 74,168,422 74,545,165
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(1) The Company has entered into foreign exchange forward contracts which
are economic hedges of vessel operating expenses and general and
administrative expenses, however, certain of these forward contracts
have not been designated as cash flow hedges pursuant to US GAAP. As a
result, gains and losses from these undesignated contracts are
reflected in Foreign exchange loss on the above Statement of Income.
During the three months ended March 31, 2008, the Company recorded
approximately $4.7 million of gains relating to these undesignated
forward contracts which effectively reduces the Company's vessel
operating expenses and general and administrative expenses.
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TEEKAY CORPORATION
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars)
--------------------------------------------------------------------------
As at March 31, As at December 31,
2008 2007
(unaudited) (unaudited)
ASSETS
Cash and cash equivalents 555,673 442,673
Other current assets 480,458 461,546
Restricted cash - current 36,343 33,479
Vessels held for sale 42,704 79,689
Restricted cash - long-term 663,471 652,717
Vessels and equipment 6,389,565 6,229,809
Advances on newbuilding contracts 682,178 617,066
Other assets 840,898 848,632
Intangible assets 267,769 259,952
Goodwill 447,323 434,590
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Total Assets 10,406,382 10,060,153
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LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued
liabilities 426,990 364,635
Current portion of long-term debt 538,052 474,873
Long-term debt 5,583,863 5,285,397
Other long-term liabilities / In
process revenue contracts 834,662 719,884
Minority interest 487,357 527,494
Stockholders' equity 2,535,458 2,687,870
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Total Liabilities and Stockholders'
Equity 10,406,382 10,060,153
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TEEKAY CORPORATION
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
--------------------------------------------------------------------------
Three Months Ended
March 31,
------------------
2008 2007
(unaudited) (unaudited)
--------- ---------
Cash and cash equivalents provided
by (used for)
OPERATING ACTIVITIES
--------------------------------------------------------------------------
Net operating cash flow 72,993 81,223
--------------------------------------------------------------------------
FINANCING ACTIVITIES
Net proceeds from long-term debt 561,918 588,782
Scheduled repayments of long-term debt (24,438) (11,734)
Prepayments of long-term debt (232,111) (218,000)
Decrease (increase) in restricted cash 2,651 (81,078)
Repurchase of common stock (20,512) (3,035)
Other (20,579) (5,696)
--------------------------------------------------------------------------
Net financing cash flow 266,929 269,239
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INVESTING ACTIVITIES
Expenditures for vessels and equipment (292,917) (187,883)
Proceeds from sale of vessels
and equipment 36,630 -
Purchase of marketable securities (520) (88,233)
Proceeds from sale of marketable
securities 7,283 12,782
Loan to joint ventures (3,085) (61,601)
Other 25,687 1,273
--------------------------------------------------------------------------
Net investing cash flow (226,922) (323,662)
--------------------------------------------------------------------------
Increase in cash and cash equivalents 113,000 26,800
Cash and cash equivalents, beginning
of the period 442,673 343,914
--------------------------------------------------------------------------
Cash and cash equivalents, end of
the period 555,673 370,714
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TEEKAY CORPORATION
APPENDIX A - SPECIFIC ITEMS AFFECTING NET INCOME
(in thousands of U.S. dollars, except per share data)
Set forth below are some of the significant items of income and expense
that affected the Company's net income for the three months ended
March 31, 2008 and 2007, all of which items are typically excluded by
securities analysts in their published estimates of the Company's
financial results:
--------------------------------------------------------------------------
Three Months Ended Three Months Ended
March 31, 2008 March 31, 2007
(unaudited) (unaudited)
--------------------- ---------------------
$ Per $ Per
$ Share $ Share
--------------------------------------------------------------------------
Gain on sale of vessels
and equipment 496 0.01 - -
Foreign currency exchange
losses(1) (34,223) (0.47) (5,888) (0.08)
Deferred income tax
expense on unrealized
foreign exchange
gains(2) (8,396) (0.11) (3,331) (0.04)
Unrealized losses from
interest rate swaps (11,455) (0.16) - -
Net effect from non-cash
changes in purchase
price allocation for the
acquisition of 50 percent
of OMI Corporation(3) (3,944) (0.05) - -
Other(4) (4,098) (0.06) - -
Minority owners' share of
items above(5) 16,053 0.22 1,850 0.02
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Total (45,567) (0.62) (7,369) (0.10)
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--------------------------------------------------------------------------
(1) 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 and have been
included in the amounts in the above table except for $4.7 million of
gains from foreign exchange forward contracts relating to vessel
operating expenses and general and administrative expenses not
designated as hedges.
(2) Portion of deferred income tax related to unrealized foreign exchange
gains and losses.
(3) Primarily relates to changes in amortization of intangible assets as a
result of adjustments to the purchase price allocation of OMI
Corporation.
(4) Primarily relates to a change in a non-cash deferred tax balance
related to 2006, settlement of a previous claim against OMI
Corporation, and loss on bond repurchases (8.875% Notes due 2011).
(5) Primarily relates to minority owners' share of foreign currency
exchange losses and unrealized losses from interest rate swaps.
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TEEKAY CORPORATION
APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY BALANCE SHEET AS AT MARCH 31, 2008
(in thousands of U.S. dollars)
--------------------------------------------------------------------------
(unaudited)
Teekay Teekay Teekay Teekay
Offshore LNG Tankers Petrojarl
---------------------------------------------
ASSETS
Cash and cash equivalents 137,791 94,593 44,477 48,210
Other current assets 104,342 23,316 13,189 67,819
Restricted cash (current &
non-current) - 694,556 - 3,254
Other assets 92,976 375,761 (1,212) (11,257)
Vessels and equipment 1,683,238 1,582,031 265,406 1,179,033
Advances on vessels - 318,551 - -
Equity investment in
subsidiaries - - - -
Intangibles and goodwill 179,952 187,932 - 228,969
---------------------------------------------
TOTAL ASSETS 2,198,299 3,276,740 321,860 1,516,028
---------------------------------------------
---------------------------------------------
LIABILITIES AND EQUITY
Accounts payable and accrued
liabilities 75,659 57,390 7,744 142,050
Current portion of debt and
leases 82,743 244,040 3,600 35,850
Long-term debt and capital
leases 1,476,680 2,097,399 144,600 410,150
Other long-term liabilities 157,775 104,646 10,809 250,591
Minority interest(1) 25,759 15,879 - 655
Equity 379,683 757,386 155,107 676,732
---------------------------------------------
TOTAL LIABILITIES AND EQUITY 2,198,299 3,276,740 321,860 1,516,028
---------------------------------------------
---------------------------------------------
Teekay Consoli-
Corp. dation
Stand- Adjust-
alone ments Total
---------------------------------
ASSETS
Cash and cash equivalents 230,602 555,673
Other current assets 314,496 523,162
Restricted cash (current & non-current) 2,004 699,814
Other assets 384,630 840,898
Vessels and equipment 1,679,857 6,389,565
Advances on vessels 363,627 682,178
Equity investment in subsidiaries 1,527,711 (1,527,711) -
Intangibles and goodwill 118,239 715,092
---------------------------------
TOTAL ASSETS 4,621,166 (1,527,711) 10,406,382
---------------------------------
---------------------------------
LIABILITIES AND EQUITY
Accounts payable and accrued liabilities 222,389 505,232
Current portion of debt and leases 171,819 538,052
Long-term debt and capital leases 1,455,034 5,583,863
Other long-term liabilities 232,599 756,420
Minority interest (1) 3,867 441,197 487,357
Equity 2,535,458 (1,968,908) 2,535,458
---------------------------------
TOTAL LIABILITIES AND EQUITY 4,621,166 (1,527,711) 10,406,382
---------------------------------
---------------------------------
(1) Minority interest in the Teekay Offshore, Teekay LNG, Teekay Tankers
and Teekay Petrojarl columns represent the joint venture partners'
share of the joint venture net assets. Minority interest in the
Consolidation Adjustments column represents the public's share of the
net assets of Teekay's publicly-traded subsidiaries.
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TEEKAY CORPORATION
APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2008
(in thousands of U.S. dollars)
--------------------------------------------------------------------------
(unaudited)
Teekay Teekay Teekay Teekay
Offshore LNG Tankers Petrojarl
---------------------------------------------
Voyage revenues 203,786 66,022 26,671 93,849
---------------------------------------------
Voyage expenses 51,377 295 96 -
Vessel operating expense 41,486 15,400 5,580 46,662
Time charter hire expense 33,646 - - 6,994
Depreciation and amortization 32,546 16,072 3,489 18,003
General and administrative 15,594 3,960 1,321 13,677
Gain on disposal of vessels
and equipment - - - -
Restructuring charge - - - -
---------------------------------------------
Total operating expenses 174,649 35,727 10,486 85,336
---------------------------------------------
Income from vessel operations 29,137 30,295 16,185 8,513
---------------------------------------------
Net interest expense (22,717) (21,111) (2,142) (4,022)
Income tax recovery (expense) (197) (323) - -
Equity income (loss) - (64) - -
Equity in earnings of
subsidiaries(1) - - - -
Foreign exchange gain (loss) (3,338) (33,891) (5) (5,722)
Minority interest income
(expense)(2) (633) 95 - -
Other (net) 2,625 (1) - (247)
---------------------------------------------
Total other income (24,260) (55,295) (2,147) (9,991)
---------------------------------------------
---------------------------------------------
NET INCOME (LOSS) 4,877 (25,000) 14,038 (1,478)
---------------------------------------------
---------------------------------------------
CASH FLOW FROM VESSEL
OPERATIONS(3) 61,683 46,367 19,674 8,204
---------------------------------------------
Teekay Consoli-
Corp. dation
Stand- Adjust-
alone ments Total
-------------------------------
Voyage revenues 400,656 (54,593) 736,391
-------------------------------
Voyage expenses 116,955 168,723
Vessel operating expense 36,315 145,443
Time charter hire expense 158,874 (54,593) 144,921
Depreciation and amortization 27,597 97,707
General and administrative 33,119 67,671
Gain on disposal of vessels and equipment (496) (496)
Restructuring charge 1,500 1,500
-------------------------------
Total operating expenses 373,864 (54,593) 625,469
-------------------------------
Income from vessel operations 26,792 - 110,922
-------------------------------
Net interest expense (18,837) (68,829)
Income tax recovery (expense) (2,206) (2,726)
Equity income (loss) (3,545) (3,609)
Equity in earnings of subsidiaries(1) (3,196) 3,196 -
Foreign exchange gain (loss) 13,473 (29,483)
Minority interest income (expense)(2) (356) 4,366 3,472
Other (net) 3,054 5,431
-------------------------------
Total other income (11,613) 7,562 (95,744)
-------------------------------
-------------------------------
NET INCOME (LOSS) 15,179 7,562 15,178
-------------------------------
-------------------------------
CASH FLOW FROM VESSEL OPERATIONS(3) 48,854 - 184,782
-------------------------------
(1) Teekay Corporation's proportionate share of the net earnings of its
publicly-traded subsidiaries.
(2) Minority interest income (expense) in the Teekay Offshore, Teekay LNG,
Teekay Tankers and Teekay Petrojarl columns represent the joint
venture partners' share of the net income (loss) of the respective
joint ventures. Minority interest income (expense) 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 and vessel
write-downs/(gain) loss on sale of vessels. 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 http://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.
--------------------------------------------------------------------------
TEEKAY CORPORATION
APPENDIX C - SUPPLEMENTAL SEGMENT INFORMATION
(in thousands of U.S. dollars)
--------------------------------------------------------------------------
Three Months Ended March 31, 2008
---------------------------------------------
(unaudited)
Fixed-Rate Liquefied Spot
Offshore Tanker Gas Tanker
Segment Segment Segment Segment Total
--------------------------------------------------------------------------
Net revenues(1) 219,887 60,135 55,982 231,664 567,668
Vessel operating expenses 86,353 16,370 11,623 31,097 145,443
Time-charter hire expense 35,475 11,720 - 97,726 144,921
Depreciation and
amortization 46,074 9,673 14,195 27,765 97,707
General and
administrative 27,682 5,667 5,611 28,711 67,671
Gain on sale of vessels and
equipment - - - (496) (496)
Restructuring charge - 1,500 - - 1,500
--------------------------------------------------------------------------
Income from vessel operations 24,303 15,205 24,553 46,861 110,922
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Three Months Ended December 31, 2007
---------------------------------------------
(unaudited)
Fixed-Rate Liquefied Spot
Offshore Tanker Gas Tanker
Segment Segment Segment Segment Total
--------------------------------------------------------------------------
Net revenues(1) 224,824 53,554 47,991 187,762 514,131
Vessel operating expenses 87,712 14,661 7,844 28,026 138,243
Time-charter hire expense 40,395 10,221 - 95,244 145,860
Depreciation and
amortization 46,275 10,054 12,162 26,206 94,697
General and
administrative 25,030 4,584 5,106 25,361 60,081
Loss on sale of vessels and
equipment 1,055 - - - 1,055
--------------------------------------------------------------------------
Income from vessel operations 24,357 14,034 22,879 12,925 74,195
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Three Months Ended March 31, 2007
---------------------------------------------
(unaudited)
Fixed-Rate Liquefied Spot
Offshore Tanker Gas Tanker
Segment Segment Segment Segment Total
--------------------------------------------------------------------------
Net revenues(1) 220,149 44,029 37,472 157,806 459,456
Vessel operating expenses 62,714 11,690 6,458 16,579 97,441
Time-charter hire expense 41,317 3,837 - 53,347 98,501
Depreciation and
amortization 45,722 8,468 10,794 14,279 79,263
General and
administrative 25,506 4,476 5,199 23,616 58,797
--------------------------------------------------------------------------
Income from vessel operations 44,890 15,558 15,021 49,985 125,454
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(1) Net revenues represents revenues less voyage expenses, which comprise
all expenses relating to certain voyages, including bunker fuel
expenses, port fees, canal tolls and brokerage 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 http://www.teekay.com for a reconciliation of
this non-GAAP measure as used in this release to the most directly
comparable GAAP financial measure.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: the Company's future growth prospects; tanker market fundamentals, including the balance of supply and demand in the tanker market during the remainder of 2008, and spot tanker charter rates; expected demand in the offshore oil production sector and the demand for vessels; the Company's future capital expenditure commitments and the financing requirements for such commitments; the timing of newbuilding deliveries; and the commencement of charter contracts. 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 and LNG, 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 implementation of new laws and regulations; 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; the potential for early termination of long-term contracts and inability of the Company to renew or replace long-term contracts; changes affecting the offshore tanker market; shipyard production delays; the Company's future capital expenditure requirements; the Company's, Teekay LNG's, Teekay Offshore's, and Teekay Tankers' potential inability to raise financing to purchase additional vessels; conditions in the United States capital markets; changes affecting the conventional tanker market; 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, 2007. 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. Contact: Contacts:
Teekay Corporation
Dave Drummond
Investor Relations Enquiries
(604) 844-6654
Teekay Corporation
Alana Duffy
Media Enquiries
(604) 844-6605
Website: http://www.teekay.com
Source: Teekay Corporation
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