Business Wire | Jul 30, 2020 04:58PM EDT

Tidewater Reports Results for the Three and Six Months Ended June 30, 2020

Jul. 30, 2020

HOUSTON--(BUSINESS WIRE)--Jul. 30, 2020--Tidewater Inc. (NYSE:TDW) announced today revenue for the three and six months ended June 30, 2020, of $102.3 million and $218.7 million, respectively compared with $125.9 million and $248.0 million, respectively, for the three months and six months ended June 30, 2019. Tidewater also reported net losses for the three and six months ended June 30, 2020, of $110.6 million ($2.74 per share) and $129.1 million ($3.21 per share), respectively, compared with $16.0 million ($0.42 per share) and $37.7 million ($1.01 per share), respectively, for the three and six months ended June 30, 2019. Included in the net losses for the three and six months ended June 30, 2020 were impairment charges related to assets held for sale, affiliate credit losses, affiliate guaranteed obligation, and general and administrative severance expenses totaling $111.5 million and $121.8 million, respectively. Excluding these costs, we would have reported net income for the three months ended June 30, 2020 of $0.9 million ($0.02 per common share) and a net loss for the six months ended June 30, 2020 of $7.3 million ($0.18 per common share). Included in the net losses for the three and six months ended June 30, 2019 were general and administrative expenses for severance and similar expenses related to integrating Tidewater and GulfMark operations of $0.5 million and $4.2 million, respectively. Excluding these costs, net losses for the three and six months ended June 30, 2019 were $15.5 million (or $0.41 per common share) and $33.5 million (or $0.90 per common share), respectively.

Quintin Kneen, Tidewater's President and Chief Executive Officer, commented, "We are pleased that our performance for the quarter was consistent with the revised 2020 outlook we discussed on our last earnings call. The environment remains very challenging but I remain confident that our dedicated team of mariners and shore base employees will continue to perform exceptionally under the circumstances.

"Although investors are aware of the economic difficulties the industry is facing, it is important to highlight an ongoing humanitarian crisis that the entire shipping industry is experiencing. The near complete shutdown of international air travel and of seemingly non-essential governmental services globally, such as visa processing, has resulted in over a quarter million seafarers stranded on all types of vessels around the globe, including Tidewater vessels. We are doing everything in our power to remedy the situation for our seafarers, but the problem demands global governmental coordination. The situation is an inadvertent consequence of policies meant to reduce the spread of COVID-19 by restricting international travel, but it has resulted in the inability to move crews around the world to relieve and to return home crews onboard vessels today. Tidewater has always been dedicated to getting our employees home safe. They remain safe, but we need to get them home.

"Our efforts in the second quarter to quickly realign the business to adjust to the steep decline in offshore activity were successful, but there is more work to do. Consistent with the plan we outlined on the last earnings call, we scaled back our drydock investment, we maintained our focus on the disposal of non-core vessels, we improved cash operating margins, and we continued to reduce the annualized run rate of quarterly general and administrative expense. The third quarter will present additional challenges as we begin to manage the process of putting into layup those vessels that are coming off hire, de-crewing those vessels, and rationalizing our shore base footprint.

"In light of the recent decline in industry activity, we reassessed the value of our vessels globally, and separately our joint ventures in Africa where the impact has been particularly severe. As a result of this assessment, we had non-cash impairments and other charges of $111.5 million during the second quarter.

"There are many heroic stories of individuals rising to the challenge of the current situation, and the mariners and shore base staff at Tidewater are among them. I remain humbled by the resilience, tenacity and steadfast focus of our employees and I thank them for their dedication to seeing Tidewater though these challenging times."

In addition to the number of outstanding shares, as of June 30, 2020, the company also has the following in the money warrants.

Common shares outstanding 40,335,963

New Creditor Warrants (strike price $0.001 per common share) 817,742

GulfMark Creditor Warrants (strike price $0.01 per common share) 952,154

Total 42,105,859



Tidewater will hold a conference call to discuss results for the three and six months ended June 30, 2020 on Friday, July 31, 2020 at 8:00 a.m. Central Time. Investors and interested parties may listen to the earnings conference call via telephone by calling +1-888-771-4371 if calling from the U.S. or Canada (+1-847-585-4405 if calling from outside the U.S.) and asking for the "Tidewater" call just prior to the scheduled start time. A live webcast of the call will also be available in the Investor Relations section of Tidewater's website at investor.tdw.com

A replay of the conference call will be available beginning at 10:30 a.m. Central Time on July 31, 2020 and will continue until 11:59 p.m. Central Time on August 31, 2020. To access the replay, visit the Investor Relations section of Tidewater's website at investor.tdw.com

The conference call will contain forward-looking statements in addition to statements of historical fact. The actual achievement of any forecasted results or the unfolding of future economic or business developments in a way anticipated or projected by the company involves numerous risks and uncertainties that may cause the company's actual performance to be materially different from that stated or implied in the forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the oilfield service industry and other factors discussed within the "Risk Factors" section of Tidewater's most recent Forms 10-Q and 10-K.

Tidewater owns and operates the largest fleet of Offshore Support Vessels in the industry, with over 60 years of experience supporting offshore energy exploration and production activities worldwide.

Note: all per-share amounts are stated on a diluted basis.

Financial information is displayed beginning on the next page.

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)



Three Months Ended Six Months Ended

June 30, June 30, June 30, June 30, 2020 2019 2020 2019

Revenues:

Vessel revenues $ 100,975 $ 123,641 $ 212,949 $ 243,303

Other operating 1,369 2,218 5,763 4,705 revenues

Total revenues 102,344 125,859 218,712 248,008

Costs and expenses:

Vessel operating 64,774 80,439 143,599 162,642 costs

Costs of other 171 586 2,844 1,350 operating revenue

General and 17,597 23,696 39,017 50,836 administrative

Depreciation and 28,144 25,038 55,251 47,970 amortization

Long-lived asset 55,482 - 65,689 - impairments

Affiliate credit loss 53,581 - 53,581 impairment expense

Affiliate guarantee 2,000 - 2,000 - obligation

(Gain) loss on asset (1,660 ) 494 (6,991 ) (776 )dispositions, net

220,089 130,253 354,990 262,022

Operating loss (117,745 ) (4,394 ) (136,278 ) (14,014 )

Other income (expense):

Foreign exchange gain (2,076 ) 11 (1,212 ) (497 )(loss)

Equity in net lossesof unconsolidated - 95 - 33 companies

Dividend income fromunconsolidated 17,150 - 17,150 - company

Interest income and 696 1,859 812 4,329 other, net

Interest and other (5,959 ) (7,582 ) (12,101 ) (15,318 )debt costs, net

9,811 (5,617 ) 4,649 (11,453 )

Loss before income (107,934 ) (10,011 ) (131,629 ) (25,467 )taxes

Income tax (benefit) 2,730 5,542 (2,441 ) 11,372 expense

Net loss $ (110,664 ) $ (15,553 ) $ (129,188 ) $ (36,839 )

Net income (loss)attributable to (41 ) 406 (120 ) 851 noncontrollinginterests

Net loss attributable $ (110,623 ) $ (15,959 ) $ (129,068 ) $ (37,690 )to Tidewater Inc.

Basic loss per common $ (2.74 ) $ (0.42 ) $ (3.21 ) $ (1.01 )share

Diluted loss per $ (2.74 ) $ (0.42 ) $ (3.21 ) $ (1.01 )common share

Weighted averagecommon shares 40,306 37,571 40,203 37,369 outstanding

Adjusted weighted 40,306 37,571 40,203 37,369 average common shares



TIDEWATER INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and par value data)

June 30, December 31,

ASSETS 2020 2019



Current assets:

Cash and cash equivalents $ 203,119 $ 218,290

Restricted cash 19,880 5,755

Trade and other receivables, less allowancefor credit losses of $556 as of June 30, 2020 115,008 110,180 and less allowance for doubtful accounts of$70 as of December 31, 2019.

Due from affiliate, less allowance for creditlosses of $71,959 as of June 30, 2020 and 65,766 125,972 less due from affiliate allowance of $20,083as of December 31, 2019

Marine operating supplies 20,580 21,856

Assets held for sale 29,064 39,287

Prepaid expenses and other current assets 20,350 15,956

Total current assets 473,767 537,296

Net properties and equipment 839,912 938,961

Deferred drydocking and survey costs 74,585 66,936

Other assets 27,411 36,335

Total assets $ 1,415,675 $ 1,579,528



LIABILITIES AND EQUITY

Current liabilities:

Accounts payable $ 17,111 $ 27,501

Accrued costs and expenses 60,993 74,000

Due to affiliates 48,803 50,186

Current portion of long-term debt 9,437 9,890

Other current liabilities 25,815 24,100

Total current liabilities 162,159 185,677

Long-term debt 273,215 279,044

Other liabilities and deferred credits 90,301 98,397



Contingencies



Equity:

Common stock 40 40

Additional paid-in-capital 1,369,645 1,367,521

Accumulated deficit (481,757 ) (352,526 )

Accumulated other comprehensive income (loss) 581 (236 )

Total stockholder's equity 888,509 1,014,799

Noncontrolling interests 1,491 1,611

Total equity 890,000 1,016,410

Total liabilities and equity $ 1,415,675 $ 1,579,528



TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands)



Three Months Ended Six Months Ended

June 30, June 30, June 30, June 30, 2020 2019 2020 2019

Net loss $ (110,664 ) $ (15,553 ) $ (129,188 ) $ (36,839 )

Other comprehensive income:

Change in pensionplan and supplementalpension planliability, net of tax 448 - 817 - of $0.2 million and$0.2 million,respectively

Total comprehensive $ (110,216 ) $ (15,553 ) $ (128,371 ) $ (36,839 )loss



TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Six Months Six Months

Ended Ended

June 30, June 30, 2020 2019

Operating activities:

Net loss $ (129,188 ) $ (36,839 )

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation 34,271 38,582

Amortization of deferred drydocking and survey 20,980 9,388 costs

Amortization of debt premiums and discounts 1,357 (1,019 )

Provision (benefit) for deferred income taxes 206 6

Gain on asset dispositions, net (6,991 ) (776 )

Affiliate credit loss impairment expense 53,581 -

Affiliate guarantee obligation 2,000 -

Long-lived asset impairments 65,689 -

Changes in investments in unconsolidated companies - 381

Compensation expense - stock based 2,736 9,215

Changes in operating assets and liabilities, net:

Trade and other receivables (4,991 ) (10,921 )

Changes in due to/from affiliate, net 3,242 15,080

Accounts payable (10,390 ) (7,769 )

Accrued costs and expenses (13,007 ) (4,977 )

Cash paid for deferred drydocking and survey costs (28,964 ) (28,688 )

Other, net (3,354 ) (2,386 )

Net cash used in operating activities (12,823 ) (20,723 )

Cash flows from investing activities:

Proceeds from sales of assets 20,906 20,566

Additions to property and equipment (4,075 ) (8,873 )

Net cash provided by investing activities 16,831 11,693

Cash flows from financing activities:

Principal payments on long-term debt (4,742 ) (3,792 )

Taxes on share-based awards (612 ) (1,760 )

Other - 1

Net cash used in financing activities (5,354 ) (5,551 )

Net change in cash, cash equivalents and (1,346 ) (14,581 )restricted cash

Cash, cash equivalents and restricted cash at 227,608 397,744 beginning of period

Cash, cash equivalents and restricted cash at end $ 226,262 $ 383,163 of period (A)

Supplemental disclosure of cash flow information:

Cash paid during the period for:

Interest, net of amounts capitalized $ 10,734 $ 16,293

Income taxes $ 6,461 $ 7,754

Note (A) Cash, cash equivalents and restricted cash at June 30, 2020 includes$3.3 million in long-term restricted cash.

TIDEWATER INC.

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(In thousands)

Three Months Ended

Additional Accumulated Non other Common paid-in Accumulated controlling Total stock deficit comprehensive capital interest income (loss)

Balance at $ 40 1,368,325 (371,134 ) 133 1,532 998,896 March 31, 2020

Totalcomprehensive - - (110,623 ) 448 (41 ) (110,216 )loss

Amortization,net of taxes, - 1,320 - - - 1,320 on share-basedawards

Balance at $ 40 1,369,645 (481,757 ) 581 1,491 890,000 June 30, 2020





Balance at $ 37 1,356,436 (232,514 ) 2,194 1,532 1,127,685 March 31, 2019

Totalcomprehensive - - (15,959 ) - 406 (15,553 )loss

Issuance ofcommon stock 1 - - - - 1 from exerciseof warrants

Amortization/cancellation - 3,406 - - - 3,406 of restrictedstock units

Balance at $ 38 1,359,842 (248,473 ) 2,194 1,938 1,115,539 June 30, 2019



Six Months Ended

Accumulated Additional Non Common Accumulated other paid-in deficit controlling Total stock comprehensive capital interest income (loss)

Balance atDecember 31, $ 40 1,367,521 (352,526 ) (236 ) 1,611 1,016,410 2019

Totalcomprehensive - - (129,068 ) 817 (120 ) (128,371 )loss

Adoption ofcredit loss - - (163 ) - - (163 )accountingstandard

Amortization,net of taxes, - 2,124 - - - 2,124 on share-basedawards

Balance at $ 40 1,369,645 (481,757 ) 581 1,491 890,000 June 30, 2020





Balance atDecember 31, $ 37 1,352,388 (210,783 ) 2,194 1,087 1,144,923 2018

Totalcomprehensive - - (37,690 ) - 851 (36,839 )loss

Issuance ofcommon stock 1 1 - - - 2 from exerciseof warrants

Amortization/cancellation - 7,453 - - - 7,453 of restrictedstock units

Balance at $ 38 1,359,842 (248,473 ) 2,194 1,938 1,115,539 June 30, 2019



The company's vessel revenues and vessel operating costs and the relatedpercentage of total vessel revenues, were as follows:

Three Months Ended Six Months Ended

June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019

(In thousands) % % %

Vessel revenues:

Americas $ 34,044 34 % $ 35,199 28 % $ 65,903 31 % $ 70,477 29 %

Middle East/Asia 23,983 24 % 20,449 17 % 48,811 23 % 40,905 17 %Pacific

Europe/Mediterranean 20,620 20 % 35,027 28 % 50,111 24 % 63,585 26 %

West Africa 22,328 22 % 32,966 27 % 48,124 23 % 68,336 28 %

Total vessel revenues $ 100,975 100 % $ 123,641 100 % $ 212,949 100 % $ 243,303 100 %

Vessel operating costs:

Crew costs $ 38,691 38 % $ 47,191 38 % $ 83,178 39 % $ 95,335 39 %

Repair and maintenance 6,656 7 % 10,911 9 % 17,254 8 % 20,612 9 %

Insurance 2,010 2 % 750 1 % 3,795 2 % 2,928 1 %

Fuel, lube and 6,383 6 % 8,451 7 % 16,135 8 % 17,797 7 %supplies

Other 11,034 11 % 13,136 10 % 23,237 11 % 25,970 11 %

Total vessel operating 64,774 64 % 80,439 65 % 143,599 67 % 162,642 67 %costs

Vessel operating $ 36,201 36 % $ 43,202 35 % $ 69,350 33 % $ 80,661 33 %margin (A)

Note (A) Vessel operating margin equals revenues less vessel operating costsand excludes general and administrative expenses and depreciation andamortization.

The company's operating loss and other components of loss before income taxesand its related percentage of total revenues, were as follows:

Three Months Ended Six Months Ended

June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019

(In thousands) % % % %

Vessel operating profit (loss):

Americas $ 4,505 4 % $ 2,900 2 % $ 3,341 2 % $ 1,870 1 %

Middle East/Asia 599 1 % (2,127 ) (1 %) (257 ) 0 % (3,289 ) (1 %)Pacific

Europe/Mediterranean (1,750 ) (2 %) 2,824 2 % (203 ) 0 % (493 ) 0 %

West Africa (3,984 ) (4 %) 3,099 3 % (8,847 ) (4 %) 11,214 5 %

Other operating profit 1,198 1 % 1,625 1 % 2,919 1 % 3,330 1 %

568 1 % 8,321 7 % (3,047 ) (1 %) 12,632 5 %



Corporate expenses (A) (8,910 ) (9 %) (12,221 ) (10 %) (18,952 ) (9 %) (27,422 ) (11 %)

Gain (loss) on asset 1,660 2 % (494 ) 0 % 6,991 3 % 776 0 %dispositions, net

Affiliate credit loss (53,581 ) (52 %) - 0 % (53,581 ) (24 %) - 0 %impairment expense

Affiliate guarantee (2,000 ) (2 %) - 0 % (2,000 ) (1 %) - 0 %obligation

Long-lived asset (55,482 ) (54 %) - 0 % (65,689 ) (30 %) - 0 %impairments

Operating loss $ (117,745 ) (115 %) $ (4,394 ) (3 %) $ (136,278 ) (62 %) $ (14,014 ) (6 %)

Note (A) General and administrative expenses for the three and six monthsended June 30, 2020 include stock-based compensation of $1.4 million and $2.7million, respectively. General and administrative expenses for the three andsix months ended June 30, 2019 includes stock-based compensation of $3.6million and $9.2 million, respectively. In addition, general and administrativecosts for the three months and six ended June 30, 2020 include $0.4 million and$0.6 million, respectively, of severance and similar costs related tointegrating Tidewater and GulfMark operations. General and administrativeexpenses for the three and six months ended June 30, 2019 include $0.5 millionand $4.2 million, respectively, of severance and other costs related tointegrating Tidewater and GulfMark operations.



TIDEWATER INC.

CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) - QUARTERLY DATA

(Unaudited)

(In thousands, except per share data)



Three Months Ended

June 30, March 31, December 31, September June 30, 30,

2020 2020 2019 2019 2019

Revenues:

Vessel $ 100,975 $ 111,974 $ 116,539 $ 117,173 $ 123,641 revenues

Otheroperating 1,369 4,394 2,237 2,592 2,218 revenues

Total revenues 102,344 116,368 118,776 119,765 125,859

Costs and expenses:

Vesseloperating 64,774 78,825 85,935 80,619 80,439 costs

Costs of otheroperating 171 2,673 916 534 586 revenue

General andadministrative 17,597 21,420 22,406 30,474 23,696 (A)

Depreciationand 28,144 27,107 28,226 25,735 25,038 amortization

(Gain) loss onasset (1,660 ) (5,331 ) (1,217 ) (270 ) 494 dispositions,net

Affiliatecredit loss 53,581 - - - - impairmentexpense

Affiliateguarantee 2,000 - - - - obligation

Assetimpairments 55,482 10,207 32,549 5,224 - and other

Totaloperating 220,089 134,901 168,815 142,316 130,253 costs andexpenses

Operating loss (117,745 ) (18,533 ) (50,039 ) (22,551 ) (4,394 )

Other income (expense):

Foreignexchange gain (2,076 ) 864 (945 ) 173 11 (loss)

Equity in net(losses)earnings of - - (2,717 ) (468 ) 95 unconsolidatedcompanies

Dividendincome from 17,150 - - - - unconsolidatedcompany

Interestincome and 696 116 690 1,579 1,859 other, net

Interest andother debt (5,959 ) (6,142 ) (6,282 ) (7,468 ) (7,582 )costs, net

Total other 9,811 (5,162 ) (9,254 ) (6,184 ) (5,617 )expense

Loss before (107,934 ) (23,695 ) (59,293 ) (28,735 ) (10,011 )income taxes

Income tax(benefit) 2,730 (5,171 ) 1,281 15,071 5,542 expense

Net loss $ (110,664 ) $ (18,524 ) $ (60,574 ) $ (43,806 ) $ (15,553 )

Net income(loss)attributable (41 ) (79 ) (721 ) 394 406 tononcontrollinginterests

Net lossattributable $ (110,623 ) $ (18,445 ) $ (59,853 ) $ (44,200 ) $ (15,959 )to TidewaterInc.

Basic loss per $ (2.74 ) $ (0.46 ) $ (1.52 ) $ (1.15 ) $ (0.42 )common share

Diluted lossper common $ (2.74 ) $ (0.46 ) $ (1.52 ) $ (1.15 ) $ (0.42 )share

Weightedaverage common 40,305,662 40,100,744 39,504,154 38,537,165 37,570,629 sharesoutstanding

Dilutiveeffect ofstock options - - - - - and restrictedstock

Adjustedweighted 40,305,662 40,100,744 39,504,154 38,537,165 37,570,629 average commonshares

Vesseloperating $ 36,201 $ 33,149 30,604 36,554 43,202 margin





Note (A)Integrationrelated costsrelated to the 446 129 2,123 6,293 460 businesscombinationwith GulfMark

Total $ 446 129 2,123 6,293 460

TIDEWATER INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

June 30, March 31, December September June 30, 31, 30,

ASSETS 2020 2020 2019 2019 2019



Current assets:

Cash and cash $ 203,119 187,802 218,290 359,332 369,549 equivalents

Restricted cash 19,880 12,461 5,755 3,300 13,614

Trade and otherreceivables, 115,008 119,455 110,180 123,133 121,155 net

Due fromaffiliate, less 65,766 128,204 125,972 124,757 121,959 allowances

Marineoperating 20,580 21,944 21,856 21,303 29,141 supplies

Assets held for 29,064 26,142 39,287 - - sale

Prepaidexpenses and 20,350 22,185 15,956 13,116 14,460 other currentassets

Total current 473,767 518,193 537,296 644,941 669,878 assets

Investments in,at equity, andadvances to - - - - 658 unconsolidatedcompanies

Net properties 839,912 922,979 938,961 1,022,786 1,041,054 and equipment

Deferreddrydocking and 74,585 81,981 66,936 49,025 41,029 survey costs

Other assets 27,411 29,971 36,335 37,269 39,651

Total assets $ 1,415,675 1,553,124 1,579,528 1,754,021 1,792,270



LIABILITIES AND EQUITY

Current liabilities:

Accounts $ 17,111 30,711 27,501 23,672 24,170 payable

Accrued costs 60,993 72,854 74,000 54,792 56,675 and expenses

Due to 48,803 50,013 50,186 41,676 39,060 affiliates

Current portionof long-term 9,437 9,104 9,890 9,689 10,002 debt

Other current 25,815 26,953 24,100 30,024 24,442 liabilities

Total current 162,159 189,635 185,677 159,853 154,349 liabilities

Long-term debt 273,215 273,015 279,044 419,905 424,911

Otherliabilities and 90,301 91,578 98,397 96,499 97,471 deferredcredits



Contingencies



Equity:

Common stock 40 40 40 39 38

Additional 1,369,645 1,368,325 1,367,521 1,365,872 1,359,842 paid-in-capital

Accumulated (481,757 ) (371,134 ) (352,526 ) (292,673 ) (248,473 )deficit

Accumulatedother 581 133 (236 ) 2,194 2,194 comprehensiveincome (loss)

Totalstockholder's 888,509 997,364 1,014,799 1,075,432 1,113,601 equity

Noncontrolling 1,491 1,532 1,611 2,332 1,938 interests

Total equity 890,000 998,896 1,016,410 1,077,764 1,115,539

Totalliabilities and $ 1,415,675 1,553,124 1,579,528 1,754,021 1,792,270 equity



Supplemental information

Due fromrelatedparties, net of due to relatedparties:

Sonatide $ 16,963 64,184 57,771 64,660 66,690 (Angola)

DTDW (Nigeria) - 14,007 18,015 18,421 16,209

Total $ 16,963 78,191 75,786 83,081 82,899



TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

(In thousands)

Three Months Ended

June 30, March 31, December September June 30, 31, 30,

2020 2020 2019 2019 2019

VESSELREVENUE BY VESSEL CLASS



Americas fleet:

Deepwater $ 27,858 22,882 22,883 24,575 26,991

Towing-supply 4,455 7,243 8,639 7,831 7,448

Other 1,731 1,734 1,811 741 760

Total $ 34,044 31,859 33,333 33,147 35,199

Middle East/Asia Pacific fleet:

Deepwater $ 14,195 14,326 16,015 14,960 12,130

Towing-supply 9,788 10,502 10,636 7,805 8,319

Total $ 23,983 24,828 26,651 22,765 20,449

Europe/Mediterranean fleet:

Deepwater $ 20,476 29,163 28,652 30,608 34,104

Towing-supply - 179 528 338 923

Other 144 149 - - -

Total $ 20,620 29,491 29,180 30,946 35,027

West Africa fleet:

Deepwater $ 8,748 12,102 14,066 14,923 14,977

Towing-supply 11,029 10,521 9,981 11,598 14,015

Other 2,552 3,173 3,328 3,794 3,974

Total $ 22,329 25,796 27,375 30,315 32,966

Worldwide fleet:

Deepwater $ 71,277 78,473 81,616 85,066 88,202

Towing-supply 25,271 28,445 29,784 27,572 30,705

Other 4,427 5,056 5,139 4,535 4,734

Total $ 100,975 111,974 116,539 117,173 123,641



TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

Three Months Ended

June March December September June 30, 31, 31, 30, 30,

2020 2020 2019 2019 2019

AVERAGE NUMBER OF VESSELS:



Americas fleet:

Deepwater 32 32 31 32 34

Towing-supply 15 17 17 17 18

Other 3 3 4 5 6

Total 50 52 52 54 58

Stacked vessels (17 ) (17 ) (15 ) (17 ) (20 )

Active vessels 33 35 37 37 38

Middle East/Asia Pacific fleet:

Deepwater 26 27 27 26 24

Towing-supply 26 28 28 26 26

Total 52 55 55 52 50

Stacked vessels (9 ) (10 ) (10 ) (11 ) (9 )

Active vessels 43 45 44 41 41

Europe/Mediterranean fleet:

Deepwater 36 39 42 42 44

Towing-supply 1 2 3 3 3

Total 37 41 45 45 47

Stacked vessels (17 ) (11 ) (15 ) (13 ) (13 )

Active vessels 20 30 30 32 34

West Africa fleet:

Deepwater 26 26 27 29 30

Towing-supply 18 19 19 20 22

Other 19 20 21 21 21

Total 63 65 67 70 73

Stacked vessels (21 ) (21 ) (22 ) (22 ) (23 )

Active vessels 42 44 45 48 50

Worldwide fleet:

Deepwater 120 124 126 129 132

Towing-supply 60 66 68 66 69

Other 22 23 25 26 27

Total 202 213 219 221 228

Stacked vessels (64 ) (60 ) (62 ) (63 ) (65 )

Active vessels 138 153 157 158 163



Total active 138 153 157 158 163

Total stacked 64 60 62 63 65

Total joint venture and 3 3 4 4 4 other vessels

Total 205 216 223 225 232



TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

Three Months Ended

June 30, March December September June 30, 31, 31, 30,

2020 2020 2019 2019 2019

AVAILABLEDAYS - TOTAL FLEET:



Americas fleet:

Deepwater 2,940 2,873 2,852 2,932 3,112

Towing-supply 1,329 1,547 1,580 1,552 1,638

Other 273 285 368 460 484

Total 4,542 4,705 4,800 4,944 5,234

Middle East/Asia Pacific fleet:

Deepwater 2,411 2,496 2,453 2,370 2,184

Towing-supply 2,342 2,512 2,576 2,392 2,369

Total 4,753 5,008 5,029 4,762 4,553

Europe/Mediterranean fleet:

Deepwater 3,256 3,581 3,848 3,874 4,024

Towing-supply 91 122 276 276 273

Total 3,347 3,703 4,124 4,150 4,297

West Africa fleet:

Deepwater 2,366 2,366 2,439 2,723 2,730

Towing-supply 1,654 1,729 1,779 1,840 1,974

Other 1,698 1,820 1,932 1,932 1,976

Total 5,718 5,915 6,150 6,495 6,680

Worldwide fleet:

Deepwater 10,973 11,316 11,592 11,899 12,050

Towing-supply 5,416 5,910 6,211 6,060 6,254

Other 1,971 2,105 2,300 2,392 2,460

Total 18,360 19,331 20,103 20,351 20,764



TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

Three Months Ended

June March December September June 30, 31, 31, 30, 30,

2020 2020 2019 2019 2019

OUT-OF-SERVICE - STACKED DAYS:



Americas fleet:

Deepwater 863 873 656 723 798

Towing-supply 601 593 568 632 728

Other 91 103 184 184 241

Total 1,555 1,569 1,408 1,539 1,767

Middle East/Asia Pacific fleet:

Deepwater 500 546 552 552 494

Towing-supply 310 396 399 460 303

Total 810 942 951 1,012 797

Europe/Mediterranean fleet:

Deepwater 1,422 1,004 1,196 1,104 1,092

Towing-supply 91 - 153 92 91

Total 1,513 1,004 1,349 1,196 1,183

West Africa fleet:

Deepwater 919 819 766 768 698

Towing-supply 563 469 583 552 700

Other 446 637 643 736 689

Total 1,928 1,925 1,992 2,056 2,087

Worldwide fleet:

Deepwater 3,704 3,242 3,170 3,147 3,082

Towing-supply 1,565 1,458 1,703 1,736 1,822

Other 537 740 827 920 930

Total 5,806 5,440 5,700 5,803 5,834



TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

Three Months Ended

June 30, March December September June 30, 31, 31, 30,

2020 2020 2019 2019 2019

AVAILABLEDAYS - ACTIVE FLEET:



Americas fleet:

Deepwater 2,077 2,000 2,196 2,209 2,314

Towing-supply 728 954 1,012 920 910

Other 182 182 184 276 243

Total 2,987 3,136 3,392 3,405 3,467

Middle East/Asia Pacific fleet:

Deepwater 1,911 1,950 1,901 1,818 1,690

Towing-supply 2,032 2,116 2,177 1,932 2,066

Total 3,943 4,066 4,078 3,750 3,756

Europe/Mediterranean fleet:

Deepwater 1,834 2,577 2,652 2,770 2,932

Towing-supply - 122 123 184 182

Total 1,834 2,699 2,775 2,954 3,114

West Africa fleet:

Deepwater 1,447 1,547 1,673 1,955 2,032

Towing-supply 1,091 1,260 1,196 1,288 1,274

Other 1,252 1,183 1,289 1,196 1,287

Total 3,790 3,990 4,158 4,439 4,593

Worldwide fleet:

Deepwater 7,269 8,074 8,422 8,752 8,968

Towing-supply 3,851 4,452 4,508 4,324 4,432

Other 1,434 1,365 1,473 1,472 1,530

Total 12,554 13,891 14,403 14,548 14,930



TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

Three Months Ended

June March December September June 30, 31, 31, 30, 30,

2020 2020 2019 2019 2019

UTILIZATION - TOTAL FLEET:



Americas fleet:

Deepwater 64.3 % 57.7 % 61.7 % 64.5 % 65.8 %

Towing-supply 43.5 54.9 58.6 53.1 43.5

Other 65.2 63.1 50.0 21.0 19.0

Total 58.3 % 57.1 % 59.8 % 56.9 % 54.5 %

Middle East/Asia Pacific fleet:

Deepwater 57.9 % 56.8 % 66.7 % 65.4 % 62.1 %

Towing-supply 68.2 69.2 70.0 61.7 61.1

Total 63.0 % 63.0 % 68.4 % 63.6 % 61.6 %

Europe/Mediterranean fleet:

Deepwater 49.9 % 64.2 % 60.0 % 64.0 % 63.0 %

Towing-supply - 46.7 31.6 24.5 56.9

Total 48.6 % 63.6 % 58.1 % 61.4 % 62.7 %

West Africa fleet:

Deepwater 31.1 % 41.5 % 46.9 % 50.6 % 51.7 %

Towing-supply 41.3 45.5 43.8 46.3 50.3

Other 39.2 51.5 56.6 55.6 55.1

Total 36.5 % 45.7 % 49.1 % 50.9 % 52.3 %

Worldwide fleet:

Deepwater 51.5 % 56.2 % 59.1 % 61.4 % 61.0 %

Towing-supply 52.8 58.0 57.9 53.1 52.9

Other 42.8 53.1 55.6 49.0 48.0

Total 50.9 % 56.4 % 58.3 % 57.5 % 57.0 %



TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

Three Months Ended

June March December September June 30, 31, 31, 30, 30,

2020 2020 2019 2019 2019

UTILIZATION - ACTIVE FLEET:



Americas fleet:

Deepwater 91.0 % 72.8 % 80.1 % 85.7 % 88.4 %

Towing-supply 79.4 89.0 91.4 89.6 78.4

Other 97.8 98.8 100.0 35.0 37.9

Total 88.6 % 85.7 % 84.6 % 82.6 % 82.3 %

Middle East/Asia Pacific fleet:

Deepwater 73.1 % 72.8 % 86.1 % 85.3 % 80.3 %

Towing-supply 78.6 82.2 82.9 76.4 70.1

Total 75.9 % 77.7 % 84.4 % 80.7 % 74.7 %

Europe/Mediterranean fleet:

Deepwater 88.6 % 89.2 % 87.1 % 89.5 % 86.5 %

Towing-supply - 46.7 70.9 36.8 85.3

Total 88.6 % 87.3 % 86.4 % 86.3 % 86.5 %

West Africa fleet:

Deepwater 50.9 % 63.4 % 68.3 % 70.5 % 69.4 %

Towing-supply 62.6 62.4 65.1 66.1 77.9

Other 53.2 79.2 84.9 89.9 84.6

Total 55.0 % 67.8 % 72.5 % 74.4 % 76.0 %

Worldwide fleet:

Deepwater 77.7 % 78.8 % 81.3 % 83.4 % 82.0 %

Towing-supply 74.2 77.0 79.8 74.5 74.7

Other 58.9 81.9 86.8 79.6 77.2

Total 74.5 % 78.5 % 81.4 % 80.4 % 79.3 %



TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

Three Months Ended

June 30, March December September June 30, 31, 31, 30,

2020 2020 2019 2019 2019

AVERAGEVESSEL DAY RATES: (A)



Americas fleet:

Deepwater 14,738 13,793 13,001 12,986 13,186

Towing-supply 7,707 8,532 9,337 9,504 10,442

Other 9,723 9,638 9,838 7,674 8,259

Total 12,865 11,854 11,617 11,783 12,341

Middle East/Asia Pacific fleet:

Deepwater 10,161 10,097 9,784 9,648 8,942

Towing-supply 6,128 6,041 5,897 5,285 5,747

Total 8,009 7,863 7,746 7,520 7,293

Europe/Mediterranean fleet:

Deepwater 12,600 12,682 12,336 12,342 13,443

Towing-supply - 3,138 6,055 4,995 5,941

Total 12,689 12,514 12,171 12,147 13,010

West Africa fleet:

Deepwater 11,891 12,337 12,304 10,827 10,615

Towing-supply 16,158 13,389 12,810 13,628 14,115

Other 3,829 3,384 3,041 3,530 3,650

Total 10,711 9,539 9,075 9,174 9,439

Worldwide fleet:

Deepwater 12,620 12,342 11,892 11,651 11,998

Towing-supply 8,843 8,292 8,284 8,564 9,279

Other 5,243 4,524 4,137 3,871 4,009

Total 10,799 10,267 9,940 10,021 10,442

Note (A) Average Vessel Day Rates equals Vessel Revenue / Days Worked.



TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

(In thousands)

Three Months Ended

June 30, March December September June 30, 31, 31, 30,

2020 2020 2019 2019 2019

Americas

Vessel $ 34,044 31,859 33,333 33,147 35,199 revenues



Vesseloperating costs:

Crew costs $ 13,138 14,186 15,307 15,108 16,008

Repair and 1,703 2,171 3,067 3,061 2,328 maintenance

Insurance 427 417 299 305 (1,118 )

Fuel, lube 1,373 2,615 1,853 1,919 2,115 and supplies

Other 1,956 2,673 4,082 2,461 2,772

Total vesseloperating $ 18,597 22,062 24,608 22,854 22,105 costs



Vesseloperating $ 15,447 9,797 8,726 10,293 13,094 margin ($)

Vesseloperating 45.4 % 30.8 % 26.2 % 31.1 % 37.2 %margin (%)



Americas -Select operatingstatistics

Averagevessels - 50 52 52 54 58 Total fleet

Utilization- Total 58.3 % 57.1 % 59.8 % 56.9 % 54.5 %fleet



Averagevessels - 33 35 37 37 38 Active fleet

Utilization- Active 88.6 % 85.7 % 84.6 % 82.6 % 82.3 %fleet



Average day $ 12,865 11,854 11,617 11,783 12,341 rates



Vesselscommencing - 5 1 4 6 drydocks



Cash paidfor deferreddrydocking $ 1,819 5,912 5,381 5,368 6,637 and surveycosts



Deferreddrydockingand survey $ 21,599 18,561 15,678 12,154 8,463 costs -beginningbalance

Cash paidfor deferreddrydocking 1,819 5,912 5,381 5,368 6,637 and surveycosts

Amortizationof deferreddrydocking (3,394 ) (2,874 ) (2,498 ) (1,964 ) (1,228 )and surveycosts

Disposals,intersegment - - - 120 (1,718 )transfersand other

Deferreddrydockingand survey $ 20,024 21,599 18,561 15,678 12,154 costs -endingbalance



TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

(In thousands)

Three Months Ended

June 30, March December September June 30, 31, 31, 30,

2020 2020 2019 2019 2019

Middle East/ Asia Pacific

Vessel $ 23,983 24,828 26,651 22,765 20,449 revenues



Vesseloperating costs:

Crew costs $ 8,726 10,085 10,308 9,243 8,986

Repair and 2,196 2,586 3,838 2,317 1,673 maintenance

Insurance 739 591 790 358 186

Fuel, lube 1,405 2,665 1,937 2,431 2,350 and supplies

Other 2,412 1,696 2,864 1,318 1,844

Total vesseloperating $ 15,478 17,623 19,737 15,667 15,039 costs



Vesseloperating $ 8,505 7,205 6,913 7,100 5,410 margin ($)

Vesseloperating 35.5 % 29.0 % 25.9 % 31.2 % 26.5 %margin (%)



Middle East/Asia Pacific- Select operatingstatistics

Averagevessels - 52 55 55 52 50 Total fleet

Utilization- Total 63.0 % 63.0 % 68.4 % 63.6 % 61.6 %fleet



Averagevessels - 43 45 44 41 41 Active fleet

Utilization- Active 75.9 % 77.7 % 84.4 % 80.7 % 74.7 %fleet



Average day $ 8,009 7,863 7,746 7,520 7,293 rates



Vesselscommencing - 5 3 3 2 drydocks



Cash paidfor deferreddrydocking $ 850 8,897 6,072 2,269 4,324 and surveycosts



Deferreddrydockingand survey $ 23,139 16,513 12,572 11,961 9,178 costs -beginningbalance

Cash paidfor deferreddrydocking 850 8,897 6,072 2,269 4,324 and surveycosts

Amortizationof deferreddrydocking (2,589 ) (2,271 ) (2,131 ) (1,911 ) (1,493 )and surveycosts

Disposals,intersegment (284 ) - - 253 (48 )transfersand other

Deferreddrydockingand survey $ 21,116 23,139 16,513 12,572 11,961 costs -endingbalance



TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

(In thousands)

Three Months Ended

June 30, March December September June 30, 31, 31, 30,

2020 2020 2019 2019 2019

Europe/ Mediterranean

Vessel $ 20,620 29,491 29,180 30,946 35,027 revenues



Vesseloperating costs:

Crew costs $ 9,707 11,696 11,984 12,974 13,001

Repair and 1,278 3,141 3,617 3,307 3,914 maintenance

Insurance 420 431 367 503 693

Fuel, lube 924 1,098 1,808 1,614 1,314 and supplies

Other 1,547 2,522 2,098 2,658 2,902

Total vesseloperating $ 13,876 18,888 19,874 21,056 21,824 costs



Vesseloperating $ 6,744 10,603 9,306 9,890 13,203 margin ($)

Vesseloperating 32.7 % 36.0 % 31.9 % 32.0 % 37.7 %margin (%)



Europe/Mediterranean- Select operatingstatistics

Averagevessels - 37 41 45 45 47 Total fleet

Utilization - 48.6 % 63.6 % 58.1 % 61.4 % 62.7 %Total fleet



Averagevessels - 20 30 30 32 34 Active fleet

Utilization - 88.6 % 87.3 % 86.4 % 86.3 % 86.5 %Active fleet



Average day $ 12,689 12,514 12,171 12,147 13,010 rates



Vesselscommencing - 2 3 1 - drydocks



Cash paid fordeferreddrydocking $ 517 2,591 3,378 316 3,030 and surveycosts



Deferreddrydockingand survey $ 10,387 9,406 7,379 8,596 5,831 costs -beginningbalance

Cash paid fordeferreddrydocking 517 2,591 3,378 316 3,030 and surveycosts

Amortizationof deferreddrydocking (1,710 ) (1,610 ) (1,335 ) (1,160 ) (1,448 )and surveycosts

Disposals,intersegment (51 ) - (16 ) (373 ) 1,183 transfers andother

Deferreddrydockingand survey $ 9,143 10,387 9,406 7,379 8,596 costs -endingbalance

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

(In thousands)

Three Months Ended

June 30, March December September June 30, 31, 31, 30,

2020 2020 2019 2019 2019

West Africa

Vessel $ 22,328 25,796 27,375 30,315 32,966 revenues



Vesseloperating costs:

Crew costs $ 7,120 8,520 8,472 8,868 9,196

Repair and 1,479 2,700 4,659 3,282 2,996 maintenance

Insurance 424 346 (282 ) 863 989

Fuel, lube 2,681 3,374 4,184 2,817 2,672 and supplies

Other 5,119 5,312 4,682 5,214 5,618

Total vesseloperating $ 16,823 20,252 21,715 21,044 21,471 costs



Vesseloperating $ 5,505 5,544 5,660 9,271 11,495 margin ($)

Vesseloperating 24.7 % 21.5 % 20.7 % 30.6 % 34.9 %margin (%)



West Africa- Select operatingstatistics

Averagevessels - 63 65 67 70 73 Total fleet

Utilization- Total 36.5 % 45.7 % 49.1 % 50.9 % 52.3 %fleet



Averagevessels - 42 44 45 48 50 Active fleet

Utilization- Active 55.0 % 67.8 % 72.5 % 74.4 % 76.0 %fleet



Average day $ 10,711 9,539 9,075 9,174 9,439 rates



Vesselscommencing - 3 1 4 4 drydocks



Cash paidfor deferreddrydocking $ 911 7,468 11,905 7,060 2,412 and surveycosts



Deferreddrydockingand survey $ 26,856 22,456 13,397 8,318 7,129 costs -beginningbalance

Cash paidfor deferreddrydocking 911 7,468 11,905 7,060 2,412 and surveycosts

Amortizationof deferreddrydocking (3,466 ) (3,067 ) (2,846 ) (1,653 ) (1,321 )and surveycosts

Disposals,intersegment - (1 ) - (328 ) 98 transfersand other

Deferreddrydockingand survey $ 24,301 26,856 22,456 13,397 8,318 costs -endingbalance



TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

(In thousands)

Three Months Ended

June 30, March 31, December September June 30, 31, 30,

2020 2020 2019 2019 2019

Worldwide

Vessel $ 100,975 111,974 116,539 117,173 123,641 revenues



Vesseloperating costs:

Crew costs $ 38,691 44,487 46,071 46,193 47,191

Repair and 6,656 10,598 15,181 11,967 10,911 maintenance

Insurance 2,010 1,785 1,174 2,027 750

Fuel, lube 6,383 9,752 9,782 8,781 8,451 and supplies

Other 11,034 12,203 13,726 11,651 13,136

Total vesseloperating $ 64,774 78,825 85,934 80,619 80,439 costs



Vesseloperating $ 36,201 33,149 30,604 36,554 43,202 margin ($)

Vesseloperating 35.9 % 29.6 % 26.3 % 31.2 % 34.9 %margin (%)



Worldwide -Select operatingstatistics

Averagevessels - 202 213 219 220 228 Total fleet

Utilization- Total 50.9 % 56.4 % 58.3 % 57.5 % 57.0 %fleet



Averagevessels - 138 153 157 158 163 Active fleet

Utilization- Active 74.5 % 78.5 % 81.4 % 80.4 % 79.3 %fleet



Average day $ 10,799 10,267 9,940 10,021 10,442 rates



Vesselscommencing - 15 8 12 12 drydocks



Cash paidfor deferreddrydocking $ 4,097 24,868 26,736 15,013 16,403 and surveycosts



Deferreddrydockingand survey $ 81,981 66,936 49,026 41,029 30,601 costs -beginningbalance

Cash paidfor deferreddrydocking 4,097 24,868 26,736 15,013 16,403 and surveycosts

Amortizationof deferreddrydocking (11,159 ) (9,822 ) (8,810 ) (6,688 ) (5,490 )and surveycosts

Disposals,intersegment (335 ) (1 ) (16 ) (328 ) (485 )transfersand other

Deferreddrydockingand survey $ 74,584 81,981 66,936 49,026 41,029 costs -endingbalance



TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

(In thousands)

Three Months Ended

June 30, March 31, December September June 30, 31, 30,

2020 2020 2019 2019 2019

Net loss $ (110,664 ) (18,524 ) (60,574 ) (43,806 ) (15,553 )



Interest andother debt 5,959 6,142 6,282 7,468 7,582 costs

Income tax(benefit) 2,730 (5,171 ) 1,281 15,071 5,542 expense

Depreciation 16,986 17,285 19,416 19,047 19,548

Amortizationof deferred 11,158 9,822 8,810 6,688 5,490 drydocking andsurvey costs

EBITDA (A), $ (73,831 ) 9,554 (24,785 ) 4,468 22,609 (B), (C)



Long-livedasset 55,482 10,207 32,549 5,224 - impairments

Affiliatecredit loss 53,581 impairmentexpense

Affiliateguarantee 2,000 - - - - obligation

One-time 446 129 2,123 6,293 460 charges

AdjustedEBITDA (A), 37,678 19,890 9,887 15,985 23,069 (B), (C)

Note (A) EBITDA excludes interest and other debt costs, income tax expense,depreciation and amortization. Additionally, Adjusted EBITDA excludesimpairment charges, and merger and integration related costs.

Note (B) EBITDA and Adjusted EBITDA for the three months ended June 30, 2020,March 31, 2020, December 31, 2019, September 30, 2019 and June 30, 2019includes non-cash, stock-based compensation expense of $1,401, $1,335, $2,972,$7,384, and $3,588, respectively.

Note (C) EBITDA and Adjusted EBITDA for the three months ended June 30, 2020,March 31, 2020, December 31, 2019, September 30, 2019, and June 30, 2019includes foreign exchange gains (losses) of $(2,076), $864, $(945), $173, and$11, respectively.



Non-GAAP Financial Measures

We disclose and discuss EBITDA and Adjusted EBITDA as non-GAAP financial measures in our public releases, including quarterly earnings releases, investor conference calls and other filings with the Securities and Exchange Commission. We define EBITDA as earnings (net income or loss) before interest and other debt costs, income tax expense, depreciation and amortization. Additionally, Adjusted EBITDA excludes impairment charges and merger and integration related costs. Our measures of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures presented by other companies. Other companies may calculate EBITDA and Adjusted EBITDA differently than we do, which may limit its usefulness as a comparative measure.

Because EBITDA and Adjusted EBITDA are not measures of financial performance calculated in accordance with GAAP, they should not be considered in isolation or as a substitute for operating income, net income or loss, cash provided (used) in operating activities, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP.

EBITDA and Adjusted EBITDA are widely used by investors and other users of our financial statements as a supplemental financial measure that, when viewed with our GAAP results and the accompanying reconciliations, we believe provide additional information that is useful to gain an understanding of the factors and trends affecting our ability to service debt, pay taxes and fund drydocking and survey costs and capital expenditures. We also believe the disclosure of EBITDA and Adjusted EBITDA helps investors meaningfully evaluate and compare our cash flow generating capacity from quarter-to-quarter and year-to-year.

EBITDA and Adjusted EBITDA are also financial metrics used by management (i) as a supplemental internal measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; (ii) to compare to the EBITDA and Adjusted EBITDA of other companies when evaluating potential acquisitions; and (iii) to assess our ability to service existing fixed charges and incur additional indebtedness.

TIDEWATER INC.

UNAUDITED OTHER FLEET AND FINANCIAL DATA

(In thousands)

Three Months Ended

June 30, March 31, December September June 30, 31, 30,

2020 2020 2019 2019 2019

Net cashprovided by(used in) $ 14,702 (27,525 ) 5,281 (15,981 ) (17,566 )operatingactivities(A)



Cashinterest 5,292 5,442 8,205 8,189 7,974 expense

Interestincome and (696 ) (116 ) (690 ) (1,579 ) (1,859 )other

Additions toproperty and (1,626 ) (2,449 ) (4,067 ) (5,058 ) (5,757 )equipment

Free cashflow beforeproceeds $ 17,672 (24,648 ) 8,729 (14,429 ) (17,208 )from assetsales



Proceedsfrom asset 11,454 9,452 3,755 4,526 10,915 sales



Free cash $ 29,126 (15,196 ) 12,484 (9,903 ) (6,293 )flow



Free cash flow is a non-GAAP investment performance indicator which we believeprovides useful information regarding the net cash generated by the Companybefore any payments to capital providers. Free cash flow is determined from netcash provided by (used in) operating activities adjusted for capitalexpenditures, proceeds from asset sales, cash interest expense and interestincome. Free cash flow is not defined by U.S. GAAP and is not a substitute fornet cash provided by operating activities.

Note (A) Net cash provided by (used in) operating activities is affected bychanges in our assets and liabilities and the amounts we pay in cash for ourdrydocks and vessel surveys as illustrated in the following table:

Three Months Ended

June 30, March 31, December September June 30, 31, 30,

2020 2020 2019 2019 2019

Cashprovided by(used in)changes inassets and $ (10,373 ) (18,127 ) 32,826 4,502 (14,169 )liabilities,excludingdrydockpayments

Cash paidfor deferreddrydocking (4,097 ) (24,867 ) (26,736 ) (15,013 ) (16,403 )and surveycosts

Totalsources(uses) ofcash for $ (14,470 ) (42,994 ) 6,090 (10,511 ) (30,572 )changes inassets andliabilities

View source version on businesswire.com: https://www.businesswire.com/news/home/20200730006061/en/

CONTACT: Tidewater Inc. Jason Stanley Vice President, Investor Relations and Marketing 713-470-5300

CONTACT: SOURCE: Tidewater Inc.