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SMALL BUSINESS
Teekay Corporation Reports Second Quarter Results
- Petrojarl Varg FPSO formally offered for sale to Teekay Offshore
HAMILTON, BERMUDA -- (Marketwire) -- 09/03/09 -- Teekay Corporation (Teekay or the Company) (NYSE: TK) today reported an adjusted net loss attributable to stockholders of Teekay(1) of $21.8 million, or $0.30 per share, for the quarter ended June 30, 2009, compared to adjusted net income of $77.1 million, or $1.05 per share, for the same period of the prior year. Adjusted net income (loss) attributable to stockholders of Teekay excludes a number of specific items which had the net effect of increasing net income by $181.2 million (or $2.49 per share) for the three months ended June 30, 2009 and $106.3 million (or $1.45 per share) for the three months ended June 30, 2008, as detailed in Appendix A to this release. Including these items, the Company reported net income attributable to the stockholders of Teekay, on a GAAP basis, of $159.4 million(2), or $2.19 per share, for the quarter ended June 30, 2009, compared to net income attributable to the stockholders of Teekay, on a GAAP basis, of $183.4 million(2), or $2.50 per share, for the same period of the prior year. Net revenues(3) for the second quarter of 2009 were $469.5 million compared to $621.3 million for the same period of the prior year.
(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) and information about specific items affecting net income which are typically excluded by securities analysts in their published estimates of the Company's financial results.
(2) Effective January 1, 2009, Teekay adopted Statement of Financial Accounting Standards No. 160 (SFAS 160), "Non-controlling Interests in Consolidated Financial Statements - an Amendment of ARB No. 51." SFAS 160 amended the accounting and reporting for non-controlling interest, which is now classified as a component of equity. SFAS 160 requires retrospective adoption of the presentation and disclosure requirements for existing non-controlling interests. All other requirements of SFAS 160 are applied prospectively.
(3) 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 financial measure under United States GAAP.
For the six months ended June 30, 2009, the Company reported an adjusted net loss attributable to stockholders of Teekay of $10.9 million, or $0.15 per share, compared to adjusted net income attributable to stockholders of Teekay of $137.8 million, or $1.88 per share, for the same period of the prior year, excluding a number of specific items which had the net effect of increasing net income by $251.7 million (or $3.45 per share) and decreasing net income by $59.5 million (or $0.81 per share), respectively, as detailed in Appendix A to this release. Including these items, the Company reported net income attributable to the stockholders of Teekay, on a GAAP basis, of $240.9 million, or $3.30 per share, compared to net income attributable to the stockholders of Teekay, on a GAAP basis, of $78.3 million, or $1.07 per share, for the same period of the prior year. Net revenues for the six months ended June 30, 2009 were $995.4 million compared to $1.2 billion for the same period of the prior year.
On June 4, 2009, the Company declared a cash dividend on its common stock of $0.31625 per share for the quarter ended June 30, 2009. The cash dividend was paid on July 24, 2009, to all shareholders of record on July 10, 2009.
"Teekay benefited from its large portfolio of stable, fixed-rate business during the second quarter, allowing us to generate $130 million of cash flow from vessel operations during a quarter of weak spot tanker market rates," commented Bjorn Moller, Teekay Corporation's President and Chief Executive Officer. "The combination of our stable cash flows generated from fixed-rate offshore, liquefied gas and conventional tanker businesses, our more than $2 billion in consolidated liquidity and our favorable debt maturity profile contributes towards Teekay's financial strength."
Mr. Moller continued, "We remain focused on our key priorities which include reducing our exposure to the current weak spot tanker market, improving profitability through cost reductions and contract improvements and reducing leverage at Teekay Parent by executing on our strategy of selling assets to our daughter companies and third parties. Since the end of the first quarter, we have reduced our spot exposure through the redelivery of 12 spot traded in-charter vessels and the sale of four spot traded conventional tankers. We have begun to see significant results from our cost management initiatives through lower overhead and operating expenses in the second quarter, compared to the same period last year. In addition, we have now successfully completed follow-on equity offerings at each of our daughter companies this year raising a combined $238 million of equity capital used to finance dropdown acquisitions. We have recently offered the Petrojarl Varg FPSO to Teekay Offshore and, if accepted, this transaction will result in further significant de-leveraging of Teekay Parent's balance sheet, and will provide Teekay with further financial flexibility."
Mr. Moller added, "A key strength of our business model lies in our global project management activities and our ability to focus our attention on any given segment of our business where a new project may develop. Over the past decade, our successful project management business has seen us build our fixed-rate cash flow from vessel operations to over $550 million per year. Our ability to deliver value-added solutions to our customers gives us access to profitable, fixed-rate projects throughout the tanker cycle. An excellent example is our purchase this month of a modern product tanker against a specialized charter requirement. Upon completion of modification work, the vessel will commence a 10-year fixed-rate charter to Caltex Australia, a long-standing customer who outsourced its Australian marine operations to us in 1997."
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 follows the tables below. Please also refer to the "Fleet List" section below and Appendix B to this release for further details.
----------------------------------------------------------------------------
Three Months Ended June 30, 2009
(unaudited)
(in Teekay Teekay
thousands Offshore LNG Teekay Teekay
of U.S. Partners Partners Tankers Teekay Consolidation Corporation
dollars) LP LP Ltd. Parent Adjustments Consolidated
----------------------------------------------------------------------------
Net
revenues(1) 150,791 79,902 30,491 253,434 (45,070) 469,548
----------------------------------------------------------------------------
Vessel
operating
expenses(1) 46,936 18,178 7,911 67,504 - 140,529
Time-charter
hire expense 29,144 - - 132,377 (45,070) 116,451
Depreciation
and
amortization 34,588 20,160 7,230 46,214 - 108,192
----------------------------------------------------------------------------
Cash flow
from Vessel
operations
(2)(3) 58,262 52,911 18,694 (181) - 129,686
----------------------------------------------------------------------------
Net debt(4) 1,395,230 1,411,957 289,453 1,082,050 - 4,178,690
----------------------------------------------------------------------------
(1) Commencing in 2009 and applied retroactively, the gains and losses
related to non-designated derivative instruments have been reclassified
to a separate line item in the Statements of Income and are no longer
included in the amounts above.
(2) Cash flow from vessel operations represents income from vessel
operations before depreciation and amortization expense, vessel/goodwill
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 measure as used in this release to the
most directly comparable GAAP financial measure.
(3) 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.
(4) Net debt represents current and long-term debt less cash and, if
applicable, current and long-term restricted cash.
----------------------------------------------------------------------------
Three Months Ended June 30, 2008
(unaudited)
----------------------------------------------------------------------------
(in Teekay Teekay
thousands Offshore LNG Teekay Teekay
of U.S. Partners Partners Tankers Teekay Consolidation Corporation
dollars) LP LP Ltd. Parent Adjustments Consolidated
----------------------------------------------------------------------------
Net
revenues(1) 164,673 70,943 42,126 383,009 (39,434) 621,317
----------------------------------------------------------------------------
Vessel
operating
expenses(1) 45,768 20,792 8,059 86,325 - 160,944
Time-charter
hire expense 32,262 - - 149,874 (39,434) 142,702
Depreciation
and
amortization 36,447 18,872 6,837 44,544 - 106,700
----------------------------------------------------------------------------
Cash flow
from vessel
operations
(2)(3) 68,552 44,406 25,788 88,451 - 227,197
----------------------------------------------------------------------------
Net debt(4) 1,505,486 2,211,814 300,922 1,387,332 - 5,405,554
----------------------------------------------------------------------------
(1) Commencing in 2009 and applied retroactively, the gains and losses
related to non-designated derivative instruments have been reclassified
to a separate line item in the Statements of Income and are no longer
included in the amounts above.
(2) Cash flow from vessel operations represents income from vessel
operations before depreciation and amortization expense, vessel/goodwill
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 measure as used in this release to the
most directly comparable GAAP financial measure.
(3) 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.
(4) Net debt represents current and long-term debt less cash and, if
applicable, current and long-term restricted cash. Net debt excludes the
impact of the dropdown predecessor.
Teekay Offshore Partners L.P.
Teekay Offshore is an international provider of marine transportation and storage services to the offshore oil industry. Through its 51 percent ownership interest in Teekay Offshore Operating L.P. (OPCO), Teekay Offshore operates a fleet of 33 shuttle tankers (including eight chartered-in vessels), four Floating Storage and Offtake (FSO) units, nine double-hull conventional oil tankers and two lightering vessels. Teekay Offshore also has direct ownership interests in two shuttle tankers and one FSO unit and has the right to participate in certain Floating Production, Storage and Offloading (FPSO) opportunities. As at June 30, 2009, Teekay Parent directly owned the remaining 49 percent interest in OPCO, as well as a 49.99 percent interest in Teekay Offshore (including the two percent General Partner interest).
Cash flow from vessel operations from Teekay Offshore decreased to $58.3 million in the second quarter of 2009, from $68.6 million in the same period of the prior year, primarily due to lower shuttle tanker utilization resulting from lower oil production and start-up delays at certain North Sea oil fields. In addition, during the second quarter of 2009, Teekay Offshore incurred $1.5 million in restructuring costs relating to the re-flagging of certain of its shuttle tankers. Teekay Offshore's operating expenses in the second quarter of 2009 declined from the previous quarter reflecting the re-flagging and other cost reduction initiatives.
On August 4, 2009, Teekay Offshore completed a follow-on equity offering of 7.475 million common units (including underwriters' overallotment option which was exercised in full), raising net proceeds of $104.3 million. Proceeds from the offering were used to repay amounts drawn under Teekay Offshore's revolving credit facilities and for general corporate purposes.
In late-August 2009, Teekay Offshore received a formal offer from Teekay Parent to acquire the FPSO unit, the Petrojarl Varg, which is currently being reviewed by the board of directors of Teekay Offshore's General Partner and its Conflicts Committee.
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 fifteen LNG carriers, two LPG carriers and eight Suezmax crude oil tankers. In addition, Teekay LNG expects to take delivery of four newbuilding LPG carriers in late-2009 and 2010. Teekay Parent currently owns a 53 percent interest in Teekay LNG (including the two percent General Partner interest).
Cash flow from vessel operations from Teekay LNG during the second quarter of 2009 increased to $52.9 million from $44.4 million in the same period of the prior year. This increase was primarily due to lower operating expenses, the scheduled drydockings of two LNG carriers, one LPG carrier and two Suezmax vessels during the second quarter of 2008, the delivery of the first of five Skaugen LPG carriers in April 2009, and a decrease in general and administrative expenses.
In August 2009, Teekay LNG acquired Teekay Parent's 70 percent interest in two 155,000 cubic meter newbuilding LNG carriers (the Tangguh LNG Carriers). These vessels have commenced their 20 year time-charters to a consortium led by a subsidiary of BP plc to provide transportation services to the Tangguh LNG Project in Indonesia.
Teekay Tankers Ltd.
Teekay Tankers currently owns a fleet of nine double-hull Aframax tankers and three double-hull Suezmax tankers. Seven of the 12 vessels are currently employed on fixed-rate time charters mostly ranging from one to three years in duration. Teekay Parent currently owns a 42.2 percent interest in Teekay Tankers (including 100 percent of the Class B common shares).
Cash flow from vessel operations from Teekay Tankers decreased to $18.7 million in the second quarter of 2009, from $25.8 million in the same period of the prior year, primarily due to a decrease in spot tanker rates in the second quarter of 2009 compared to the same period of the prior year.
On June 24, 2009, Teekay Tankers completed a follow-on equity offering of 7.0 million Class A common shares, raising net proceeds of $65.8 million. Proceeds from the offering were used fund the acquisition of one Suezmax tanker from Teekay Parent for $57.0 million with the remaining proceeds used to reduce amounts drawn under Teekay Tankers' revolving credit facility.
Teekay Parent
In addition to its equity ownership interests in Teekay Offshore, Teekay LNG and Teekay Tankers, Teekay Corporation directly owns a substantial fleet of vessels. As at August 31, 2009, this included 28 conventional tankers (including two Suezmax newbuildings under construction), five FPSOs, a 33 percent interest in four newbuilding LNG carriers under construction, four Aframax shuttle tanker newbuildings under construction, and one FSO unit currently under conversion. In addition, as at August 31, 2009, Teekay Parent had 41 chartered-in conventional tankers (including 10 vessels owned by its subsidiaries) and two chartered-in LNG carriers owned by Teekay LNG.
Cash flow from vessel operations from Teekay Parent decreased by $88.6 million in the second quarter of 2009 compared to the same period of the prior year, primarily due to a decrease in average spot tanker rates in the second quarter of 2009, partially offset by higher cash flow from the FPSO fleet and lower operating and overhead expenses as a result of cost reduction initiatives.
Tanker Market
Despite a short-lived increase late in the quarter, average spot rates for crude oil tankers declined in the second quarter of 2009 reflecting a reduction in global oil demand coupled with growth in the world tanker fleet. The market was also adversely affected by seasonal factors such as refinery maintenance and the start of North Sea oil field maintenance. The removal from active trading of a number of vessels used for floating oil storage continues to be a factor in temporarily reducing available tanker supply.
Crude tanker rates have declined further in the third quarter of 2009 to date, to levels approaching operating cost breakeven, due to weak market fundamentals. Production outages in Nigeria caused by militant attacks on oil infrastructure and weaker refining fundamentals have put further downward pressure on tanker rates.
As of August 12, 2009, the International Energy Agency (IEA) projected global oil demand of 83.9 million barrels per day (mb/d) in 2009, a 2.4 mb/d (or 2.7 percent) decline from 2008. The IEA forecasts a recovery in global oil demand during 2010 to 85.3 mb/d, an increase of 1.3 mb/d (or 1.6 percent) over 2009 based on a projected global GDP growth rate of 1.9 percent for the year.
The world tanker fleet grew by approximately 4.9 percent in the first half of 2009, a generally higher level of fleet growth than in recent years. The tanker orderbook for the remainder of 2009 and 2010 is sizeable but fleet growth could be dampened by the removal of single-hull tankers ahead of the targeted IMO phase-out timeline, order cancellations as a result of a weaker global financing market and newbuilding construction delays from newly established shipyards.
Teekay's Spot Tanker Fleet Performance
The following table highlights the consolidated operating performance of the Company's conventional spot tanker pools and period out-charters with an initial term of between one and three years, measured in net revenues per revenue day or time-charter equivalent (TCE) rates:
---------------------------------------------------------------------------
Three Months Ended
June 30, March 31, June 30,
2009 2009 2008
--------------------------
Suezmax
Gemini Suezmax Pool average spot TCE rate(1) $24,633 $42,188 $72,169
Spot revenue days(2) 713 606 432
Average time-charter rate(3)(4) $37,486 $35,906 $30,609
Time-charter revenue days 568 586 605
Aframax
Teekay Aframax Pool average spot TCE rate(1)(5) $16,475 $25,200 $41,911
Spot revenue days(2) 2,924 3,445 3,635
Average time-charter rate(3) $32,708 $32,944 $31,803
Time-charter revenue days 546 524 180
LR2
Taurus LR2 Pool average spot TCE rate(1) $17,721 $26,228 $29,556
Spot revenue days(2) 398 450 557
Average time-charter rate(3) $28,110 $25,628 $37,876
Time-charter revenue days 98 180 151
MR
MR product tanker average spot TCE rate(1) $15,278 $17,929 $26,134
Spot revenue days(2) 270 390 520
Average product tanker time-charter rate(3) $19,645 $21,374 $27,014
Time-charter revenue days 167 180 179
---------------------------------------------------------------------------
(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 their respective pools but exclude
vessels greater than 15 years old.
(2) Spot revenue days includes total owned and in-chartered vessels in the
Teekay consolidated fleet but excludes commercially managed pool
vessels.
(3) Average time-charter rates include realized gains and losses of
synthetic time-charters and forward freight agreements (FFAs), short-
term time-charters, and fixed-rate contracts of affreightment that are
initially between one and three years in duration.
(4) Average Suezmax time-charter rates exclude the cost of spot in-
chartering vessels for contract of affreightment cargoes.
(5) Including items outside of the pool (vessels greater than 15 years old
and realized results of bunker hedging and FFAs) the average Teekay
Aframax spot TCE rate was $16,425 per day, $25,541 per day and $41,982
per day during the three months ended June 30, 2009, March 31, 2009 and
June 30, 2008, respectively.
Fleet List
As at August 31, 2009, Teekay's consolidated fleet consisted of 165 vessels, including chartered-in vessels, newbuildings under construction and vessels under conversion 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 Offshore Fleet
Shuttle Tankers(2) 27 8 - 35
FSO Units(3) 5 - - 5
Aframax Tankers 11 - - 11
----------------------------------------------------------------------------
Total Teekay Offshore Fleet 43 8 - 51
----------------------------------------------------------------------------
Teekay LNG Fleet
LNG Carriers 15 - - 15
LPG Carriers 2 - 4 6
Suezmax Tankers 8 - - 8
----------------------------------------------------------------------------
Total Teekay LNG Fleet 25 - 4 29
----------------------------------------------------------------------------
Teekay Tankers Fleet
Aframax Tankers 9 - - 9
Suezmax Tankers 3 - - 3
----------------------------------------------------------------------------
Total Teekay Tankers Fleet 12 - - 12
----------------------------------------------------------------------------
Teekay Parent Fleet
Aframax Tankers(4) 7 20 - 27
Suezmax Tankers 11 6 2 19
VLCC Tankers - 1 - 1
Product Tankers 8 4 - 12
LNG Carriers(5) - - 4 4
Shuttle Tankers - - 4 4
FPSO Units 5 - - 5
FSO Units 1 1
----------------------------------------------------------------------------
Total Teekay Parent Fleet 31 31 11 73
----------------------------------------------------------------------------
Total Teekay Consolidated Fleet 111 39 15 165
----------------------------------------------------------------------------
(1) Excludes vessels managed on behalf of third parties.
(2) Includes six shuttle tankers in which Teekay Offshore's ownership is 50
percent.
(3) Includes one FSO in which Teekay Offshore's ownership is 89 percent.
(4) Excludes nine vessels chartered-in from Teekay Offshore Partners and one
vessel chartered-in from Teekay Tankers.
(5) Excludes two LNG carriers chartered-in from Teekay LNG.
During the second quarter of 2009, Teekay Parent sold and delivered two LR2 product tankers for proceeds of $115.4 million. The total gain related to the sale of these vessels was $29.8 million. In July 2009, Teekay Parent entered into an agreement to sell one of its older Aframax tankers for $16.4 million, which is expected to be delivered in the fall of 2009.
In August 2009, Teekay Parent entered into an agreement to purchase a 2007-built 40,000 deadweight tonne product tanker, which is expected to deliver in September 2009, and is expected to commence a 10-year fixed-rate charter with Caltex Australia by the end of third quarter.
Liquidity and Capital Expenditures
As at June 30, 2009, Teekay had current consolidated liquidity of over $2.0 billion, consisting of $472.7 million cash and $1,558.3 million of undrawn revolving credit facilities. In addition, the Company has pre-arranged newbuilding financing of $757 million, bringing total consolidated liquidity to approximately $2.8 billion.
The Company's remaining capital commitments relating to its portion of newbuildings were as follows as at June 30, 2009:
----------------------------------------------------------------------------
(in millions) 2009 2010 2011 2012 Total
----------------------------------------------------------------------------
Teekay Offshore - - - - -
----------------------------------------------------------------------------
Teekay LNG $112(i) $61 - - $173
----------------------------------------------------------------------------
Teekay Tankers - - - - -
----------------------------------------------------------------------------
Teekay Parent (23)(i) 270 $320 $45 612
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total Teekay Corporation Consolidated $89 $331 $320 $45 $785
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(i) Adjusted to reflect the $70 million equity purchase price paid to Teekay
Parent from Teekay LNG Partners for the Tangguh LNG Carriers in August
2009.
As indicated above, the Company had total capital expenditure commitments of approximately $785 million remaining as at June 30, 2009, of which $757 million has pre-arranged financing, leaving only $28 million to be funded from operating cash flow or other sources.
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), 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 165 vessels, offices in 16 countries and approximately 6,700 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".
---------------------------------------------------------------------------
TEEKAY CORPORATION
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(in thousands of U.S. dollars, except share and per share data)
---------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30, June 30,
2009 2009 2008 2009 2008
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
---------------------------------------------------------------------------
REVENUES (1) 532,473 616,551 810,832 1,149,024 1,551,247
---------------------------------------------------------------------------
OPERATING
EXPENSES
Voyage
expenses (1) 62,925 90,669 189,515 153,594 358,976
Vessel operating
expenses (1)(2) 140,529 149,328 160,944 289,857 309,379
Time-charter
hire expense 116,451 136,828 142,702 253,279 287,622
Depreciation
and
amortization 108,192 106,553 106,700 214,745 204,407
General and
administrative
(1)(2) 52,695 51,140 71,298 103,835 140,363
Gain on sale of
vessels and
equipment, net
of write-downs (11,083) (118) (2,925) (11,201) (3,421)
Restructuring
charges 5,003 5,558 4,617 10,561 6,117
---------------------------------------------------------------------------
474,712 539,958 672,851 1,014,670 1,303,443
---------------------------------------------------------------------------
Income from
vessel
operations 57,761 76,593 137,981 134,354 247,804
---------------------------------------------------------------------------
OTHER ITEMS
Interest
expense (1) (37,280) (44,190) (63,253) (81,470) (151,959)
Interest
income (1) 5,023 6,678 18,832 11,701 52,722
Realized and
unrealized gain
(loss)
on derivative
instruments (1) 157,485 47,245 116,263 204,730 (34,948)
Income tax
recovery
(expense) 4,598 (5,868) 11,201 (1,270) 8,718
Equity income
(loss) from
joint
ventures (1) 27,380 11,422 (2,063) 38,802 (5,672)
Foreign exchange
(loss) gain (25,165) 11,312 (3,014) (13,853) (36,595)
Other - net 3,823 1,582 6,294 5,405 10,482
---------------------------------------------------------------------------
Net income (3) 193,625 104,774 222,241 298,399 90,552
Less: Net income
attributable to
non-controlling
interests (34,266) (23,269) (38,822) (57,535) (12,262)
---------------------------------------------------------------------------
Net income
attributable
to stockholders
of Teekay
Corporation 159,359 81,505 183,419 240,864 78,290
---------------------------------------------------------------------------
Earnings per
common share
of Teekay
- Basic $2.20 $1.12 $2.53 $3.32 $1.08
- Diluted $2.19 $1.12 $2.50 $3.30 $1.07
---------------------------------------------------------------------------
Weighted-average
number of
common shares
outstanding
- Basic 72,535,899 72,516,193 72,377,684 72,526,101 72,511,041
- Diluted 72,798,023 72,745,781 73,279,213 72,887,474 73,357,190
---------------------------------------------------------------------------
(1) Commencing in 2009 and applied retroactively, the realized and
unrealized gains and losses related to derivative instruments that are
not designated as hedges for accounting purposes have been reclassified
to a separate line item in the statements of income. 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:
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30, June 30,
2009 2009 2008 2009 2008
Realized gains (losses)
relating to:
Interest rate swaps (29,528) (20,888) (11,495) (50,416) (13,211)
Foreign currency
forward contracts
Vessel operating expenses (2,407) (3,438) 5,520 (5,845) 10,691
General and administrative
expenses (41) (2,059) 3,492 (2,100) 7,141
Voyage expenses and other - - 452 - 5,348
Bunkers and FFAs 4,294 (2,289) (10,461) 2,005 (15,750)
--------------------------------------------
(27,682) (28,674) (12,492) (56,356) (5,781)
--------------------------------------------
Unrealized gains (losses)
relating to:
Interest rate swaps 182,471 62,976 167,729 245,447 2,622
Foreign currency forward
contracts 6,416 6,751 (6,347) 13,167 (8,226)
Bunkers, FFAs and other (3,720) 6,192 (32,627) 2,472 (23,563)
--------------------------------------------
185,167 75,919 128,755 261,086 (29,167)
--------------------------------------------
Total realized and
unrealized gains
(losses) on non-
designated derivative
instruments 157,485 47,245 116,263 204,730 (34,948)
--------------------------------------------
--------------------------------------------
In addition, equity income (loss) from joint ventures includes net
unrealized gains from non-designated interest rate swaps held within the
joint ventures of $25.5 million, $7.8 million and $nil for the three
months ended June 30, 2009, March 31, 2009 and June 30, 2008,
respectively, and $33.3 million and $nil for the six months ended June
30, 2009 and 2008, 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 United States 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 Statements of Income, as
detailed in the table below:
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30, June 30,
2009 2009 2008 2009 2008
Vessel operating expenses 6,919 (223) 445 6,696 (190)
General and administrative 1,692 1,997 300 3,689 (115)
(3) Commencing in 2009 and applied retroactively, in accordance with SFAS
160, the Company's net income includes income attributable to non-
controlling interests.
---------------------------------------------------------------------------
TEEKAY CORPORATION
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars)
---------------------------------------------------------------------------
As at As at As at
June 30, March 31, December 31,
2009 2009 2008
(unaudited) (unaudited) (unaudited)
ASSETS
Cash and cash equivalents 472,671 770,450 814,165
Other current assets 302,712 320,820 438,829
Restricted cash - current 35,440 31,984 35,841
Restricted cash - long-term 610,523 603,694 614,715
Vessels held for sale 34,970 - 69,649
Vessels and equipment 6,649,736 6,792,372 6,713,392
Advances on newbuilding contracts 231,220 343,846 553,702
Derivative assets 53,904 127,203 167,326
Investment in joint ventures 126,315 112,365 103,956
Investment in direct financing leases 474,321 278,204 79,508
Other assets 159,076 155,094 155,959
Intangible assets 246,640 255,166 264,768
Goodwill 203,191 203,191 203,191
---------------------------------------------------------------------------
Total Assets 9,600,719 9,994,389 10,215,001
---------------------------------------------------------------------------
---------------------------------------------------------------------------
LIABILITIES AND EQUITY
Accounts payable and accrued liabilities 294,156 296,453 374,724
Other current liabilities 21,274 23,443 22,255
Current portion of long-term debt 353,834 361,013 392,659
Long-term debt 4,943,490 5,254,003 5,377,474
Derivative liabilities 417,668 711,777 843,265
In process revenue contracts 283,362 302,076 317,865
Other long-term liabilities 253,582 254,583 234,354
Equity:
Non-controlling interests 727,390 653,526 583,938
Stockholders of Teekay 2,305,963 2,137,515 2,068,467
---------------------------------------------------------------------------
Total Liabilities and Equity 9,600,719 9,994,389 10,215,001
---------------------------------------------------------------------------
---------------------------------------------------------------------------
---------------------------------------------------------------------------
TEEKAY CORPORATION
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
---------------------------------------------------------------------------
Six Months Ended
June 30,
2009 2008
(unaudited) (unaudited)
Cash and cash equivalents provided by (used for)
OPERATING ACTIVITIES
---------------------------------------------------------------------------
Net operating cash flow 229,268 198,966
---------------------------------------------------------------------------
FINANCING ACTIVITIES
Net proceeds from long-term debt 296,560 1,279,388
Scheduled repayments of long-term debt (137,777) (198,320)
Prepayments of long-term debt (642,500) (645,321)
Decrease (increase) in restricted cash 5,805 (11,503)
Repurchase of common stock - (20,512)
Net proceeds from the public offering of Teekay LNG 67,095 148,345
Net proceeds from the public offering of Teekay - 134,265
Offshore
Net proceeds from the public offering of Teekay 65,556 -
Tankers
Cash dividends paid (45,861) (40,028)
Distribution from subsidiaries to non-controlling (53,093) (34,546)
interests
Other 160 3,840
---------------------------------------------------------------------------
Net financing cash flow (444,055) 615,608
---------------------------------------------------------------------------
INVESTING ACTIVITIES
Expenditures for vessels and equipment (344,888) (410,495)
Proceeds from sale of vessels and equipment 198,837 79,224
Purchase of marketable securities - (542)
Proceeds from sale of marketable securities - 11,058
Purchase of Teekay Petrojarl ASA - (257,142)
Loans to joint ventures (1,420) (211,491)
Other 20,764 31,074
---------------------------------------------------------------------------
Net investing cash flow (126,707) (758,314)
---------------------------------------------------------------------------
(Decrease) increase in cash and cash equivalents (341,494) 56,260
Cash and cash equivalents, beginning of the period 814,165 442,673
---------------------------------------------------------------------------
Cash and cash equivalents, end of the period 472,671 498,933
---------------------------------------------------------------------------
---------------------------------------------------------------------------
---------------------------------------------------------------------------
TEEKAY CORPORATION
APPENDIX A - SPECIFIC ITEMS AFFECTING NET 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, a non-GAAP financial measure, to net income as determined in
accordance with GAAP, adjusted for some of the significant items of income
and expense that affected the Company's net income for the three and six
months ended June 30, 2009, all of which items are typically excluded by
securities analysts in their published estimates of the Company's financial
results:
-------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, 2009 June 30, 2009
(unaudited) (unaudited)
$ Per $ Per
$ Share(1) $ Share(1)
-------------------------------------------------------------------------
Net income - GAAP basis 193,625 298,399
Adjust for: Net income attributable
to non-controlling interests (34,266) (57,535)
-------------------------------------------------------------------------
Net income attributable to
stockholders of Teekay 159,359 2.19 240,864 3.30
Add (subtract) specific items
affecting net income:
Unrealized gains from derivative
instruments (2) (219,251) (3.02) (304,741) (4.18)
Foreign currency exchange
losses (3) 25,165 0.35 13,853 0.19
Deferred income tax expense on
unrealized foreign
exchange gains (4) 1,904 0.03 10,268 0.14
Restructuring charge (5) 5,003 0.07 10,561 0.15
Gain on sale of vessels
and equipment (29,845) (0.41) (29,963) (0.41)
Write-down of vessels and
equipment 18,762 0.26 18,762 0.26
Other (6) (637) (0.01) 871 0.01
Non-controlling interests'
share of items above 17,725 0.24 28,658 0.39
-------------------------------------------------------------------------
Total adjustments (181,174) (2.49) (251,731) (3.45)
-------------------------------------------------------------------------
Adjusted net loss attributable
to stockholders of Teekay (21,815) (0.30) (10,867) (0.15)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Fully diluted per share amounts.
(2) Reflects the unrealized gains 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 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) Primarily due to deferred income tax related to unrealized foreign
exchange gains and losses.
(5) Restructuring charges relate to the reorganization of certain of the
Company's operational functions and the re-flagging of certain of the
Company's shuttle tankers.
(6) Primarily relates to non-recurring adjustments to tax accruals and
impairment of intangible assets.
---------------------------------------------------------------------------
TEEKAY CORPORATION
APPENDIX A - SPECIFIC ITEMS AFFECTING NET INCOME
(in thousands of U.S. dollars, except per share data)
Set forth below is a reconciliation of the Company's unaudited adjusted net
income, a non-GAAP financial measure, to net income as determined in
accordance with GAAP, adjusted for some of the significant items of income
and expense that affected the Company's net income for the three and six
months ended June 30, 2008, all of which items are typically excluded by
securities analysts in their published estimates of the Company's financial
results:
---------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, 2008 June 30, 2008
(unaudited) (unaudited)
$ Per $ Per
$ Share(1) $ Share(1)
---------------------------------------------------------------------------
Net income - GAAP basis 222,241 90,552
Adjust for: Net income attributable
to non-controlling interests (38,822) (12,262)
---------------------------------------------------------------------------
Net income attributable to
stockholders of Teekay 183,419 2.50 78,290 1.07
Add (subtract) specific items
affecting net income:
Unrealized (gains) losses from
derivative instruments (2) (141,500) (1.93) 15,558 0.21
Foreign currency exchange losses (3) 1,807 0.03 35,339 0.48
Deferred income tax expense on
unrealized foreign exchange
gains (4) 284 - 8,680 0.12
Restructuring charge (5) 4,617 0.06 4,617 0.06
Gain on sale of vessels and
equipment (2,925) (0.04) (3,421) (0.05)
Net effect from non-cash changes in
purchase price allocation for the
acquisition of 50 percent of OMI
Corporation (6) 3,084 0.04 7,028 0.10
Net effect from non-cash changes in
purchase price allocation for the
acquisition of Teekay Petrojarl
ASA (7) 6,398 0.09 6,398 0.09
Other (8) (1,746) (0.02) 835 0.01
Non-controlling interests' share of
items above 23,639 0.32 (15,502) (0.21)
---------------------------------------------------------------------------
Total adjustments (106,342) (1.45) 59,532 0.81
---------------------------------------------------------------------------
Adjusted net income attributable to
stockholders of Teekay 77,077 1.05 137,822 1.88
---------------------------------------------------------------------------
---------------------------------------------------------------------------
(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 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) Primarily due to deferred income tax related to unrealized foreign
exchange gains and losses.
(5) Restructuring charges relate to the reorganization of certain of the
Company's operational functions.
(6) Primarily relates to changes in amortization of intangible assets as a
result of adjustments to the purchase price allocation of OMI
Corporation.
(7) Primarily relates to changes in amortization of in-process revenue
contracts as a result of adjustments to the purchase price allocation
of Teekay Petrojarl ASA.
(8) Primarily relates to losses on bond repurchases (8.875% Notes due
2011), a change in non-cash deferred tax balances and settlement of a
previous claim against OMI Corporation.
---------------------------------------------------------------------------
TEEKAY CORPORATION
APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY BALANCE SHEET AS AT JUNE 30, 2009
(in thousands of U.S. dollars)
---------------------------------------------------------------------------
(unaudited)
Teekay Teekay Teekay Teekay
Offshore LNG Tankers Petrojarl
---------------------------------------------
ASSETS
Cash and cash equivalents 97,290 94,199 17,575 34,910
Other current assets 66,489 14,928 8,596 52,943
Restricted cash (current &
non-current) - 642,594 - 2,416
Vessels and equipment 1,658,129 1,801,459 511,008 1,270,107
Advances on newbuilding
contracts - 55,661 - -
Derivative assets - 51,239 - -
Investment in joint ventures - 78,211 - -
Investment in direct
financing leases 67,451 406,177 - -
Other assets 10,987 27,993 4,003 18,544
Advances to affiliates 9,919 10,176 7,947 -
Equity investment in
subsidiaries - - - -
Intangibles and goodwill 167,874 172,871 6,761 999
---------------------------------------------
TOTAL ASSETS 2,078,139 3,355,508 555,890 1,379,919
---------------------------------------------
---------------------------------------------
LIABILITIES AND EQUITY
Accounts payable and accrued
liabilities 49,955 45,233 11,935 38,848
Other current liabilities 20,038 1,236 - -
Advances from affiliates 31,441 99,724 4,620 115,706
Current portion of long-term
debt 85,417 214,902 3,600 12,100
Long-term debt 1,407,103 1,933,848 303,428 341,659
Derivative liabilities 88,188 139,109 13,970 32,225
In-process revenue contracts - - 691 280,654
Other long-term liabilities 35,215 54,389 - 41,033
Equity:
Non-controlling interests (1) 40,560 4,053 - 714
Equity attributable to
stockholders/unitholders of
publicly-listed entities 320,222 863,014 217,646 516,980
---------------------------------------------
TOTAL LIABILITIES AND
EQUITY 2,078,139 3,355,508 555,890 1,379,919
---------------------------------------------
---------------------------------------------
NET DEBT (2) 1,395,230 1,411,957 289,453 316,433
---------------------------------------------
---------------------------------------------
Consol-
Teekay idation
Standalone Adjustments Total
----------------------------------
ASSETS
Cash and cash equivalents 228,697 - 472,671
Other current assets 194,726 - 337,682
Restricted cash (current & non-current) 953 - 645,963
Vessels and equipment 1,409,033 - 6,649,736
Advances on newbuilding contracts 175,559 - 231,220
Derivative assets 2,665 - 53,904
Investment in joint ventures 48,104 - 126,315
Investment in direct financing leases 693 - 474,321
Other assets 97,549 - 159,076
Advances to affiliates (28,042) - -
Equity investment in subsidiaries 1,235,799 (1,235,799) -
Intangibles and goodwill 101,326 - 449,831
----------------------------------
TOTAL ASSETS 3,467,062 (1,235,799) 9,600,719
----------------------------------
----------------------------------
LIABILITIES AND EQUITY
Accounts payable and accrued liabilities 148,185 - 294,156
Other current liabilities - - 21,274
Advances from affiliates (251,491) - -
Current portion of long-term debt 37,815 - 353,834
Long-term debt 957,452 - 4,943,490
Derivative liabilities 144,176 - 417,668
In-process revenue contracts 2,017 - 283,362
Other long-term liabilities 122,945 - 253,582
Equity:
Non-controlling interests (1) - 682,063 727,390
Equity attributable to stockholders/
unitholders of publicly-listed
entities 2,305,963 (1,917,862) 2,305,963
----------------------------------
TOTAL LIABILITIES AND
EQUITY 3,467,062 (1,235,799) 9,600,719
----------------------------------
----------------------------------
NET DEBT (2) 765,617 - 4,178,690
----------------------------------
----------------------------------
(1) Non-controlling interests in the Teekay Offshore and Teekay LNG columns
represent the joint venture partners' share of the 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. Commencing in 2009, in accordance with
SFAS 160, non-controlling interest is included as a component of
equity.
(2) Net debt represents current and long-term debt less cash and, if
applicable, current and long-term restricted cash.
---------------------------------------------------------------------------
TEEKAY CORPORATION
APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED JUNE 30, 2009
(in thousands of U.S. dollars)
---------------------------------------------------------------------------
(unaudited)
Consol-
Teekay Teekay Teekay idation
Off- Teekay Teekay Petro- Stand- adjust-
shore LNG Tankers jarl alone ments Total
------------------------------------------------------------
Voyage
revenues 173,020 80,124 31,005 99,170 200,286 (51,132) 532,473
------------------------------------------------------------
Voyage
expenses 22,229 222 514 - 46,022 (6,062) 62,925
Vessel
operating
expenses 46,936 18,178 7,911 44,904 22,600 - 140,529
Time-charter
hire expense 29,144 - - 5,782 126,595 (45,070) 116,451
Depreciation
and
amortization 34,588 20,160 7,230 25,746 20,468 - 108,192
General and
administrative 13,351 4,056 1,783 7,553 25,952 - 52,695
Gain on sale of
vessels and
equipment, net
of write-downs - - - - (11,083) - (11,083)
Restructuring
charge 1,481 709 - - 2,813 - 5,003
------------------------------------------------------------
Total operating
expenses 147,729 43,325 17,438 83,985 233,367 (51,132) 474,712
------------------------------------------------------------
Income (loss)
from vessel
operations 25,291 36,799 13,567 15,185 (33,081) - 57,761
------------------------------------------------------------
Net interest
expense (8,961) (12,608) (2,088) (2,493) (6,107) - (32,257)
Realized and
unrealized
gain on
derivative
instruments 44,256 8,641 5,475 1,781 97,332 - 157,485
Income tax
recovery
(expense) 3,037 49 - (229) 1,741 - 4,598
Equity income
(loss) from
joint ventures - 10,133 - (702) 17,949 - 27,380
Equity in
earnings of
subsidiaries
(1) - - - - 78,617 (78,617) -
Foreign
exchange
(loss) gain (1,354) (22,379) (60) (2,569) 1,197 - (25,165)
Other - net 1,910 (40) - 242 1,711 - 3,823
------------------------------------------------------------
Net income 64,179 20,595 16,894 11,215 159,359 (78,617) 193,625
Less: Net
(income) loss
attributable
to non-
controlling
interests (2) (4,228) (2,798) - 146 - (27,386) (34,266)
------------------------------------------------------------
Net income
attributable
to stock-
holders/
unitholders of
publicly-
listed
entities 59,951 17,797 16,894 11,361 159,359 (106,003) 159,359
------------------------------------------------------------
------------------------------------------------------------
------------------------------------------------------------
CASH FLOW FROM
VESSEL
OPERATIONS (3) 58,262 52,911 18,694 20,820 (21,001) - 129,686
------------------------------------------------------------
------------------------------------------------------------
(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.
Commencing in 2009, in accordance with SFAS 160, the Company's net
income (loss) includes income (loss) attributable to non-controlling
interests.
(3) Cash flow from vessel operations represents income from vessel
operations before depreciation and amortization expense, vessel/
goodwill 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.
---------------------------------------------------------------------------
TEEKAY CORPORATION
APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY STATEMENTS OF INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2009
(in thousands of U.S. dollars)
---------------------------------------------------------------------------
(unaudited)
Consol-
Teekay Teekay Teekay idation
Off- Teekay Teekay Petro- Stand- adjust-
shore LNG Tankers jarl alone ments Total
--------------------------------------------------------------
Voyage
revenues 356,445 155,797 65,453 192,896 479,759 (101,326) 1,149,024
--------------------------------------------------------------
Voyage
expenses 47,042 740 1,094 - 117,185 (12,467) 153,594
Vessel
operating
expenses 97,670 36,919 16,300 87,682 51,286 - 289,857
Time-charter
hire expense 61,289 - - 11,605 269,244 (88,859) 253,279
Depreciation
and
amortization 69,119 39,486 14,261 51,525 40,354 - 214,745
General and
adminis-
trative 25,273 7,611 3,425 17,339 50,187 - 103,835
Gain on sale
of vessels
and
equipment,
net
of write-
downs - - - - (11,201) - (11,201)
Restructuring
charge 3,682 2,660 - - 4,219 - 10,561
--------------------------------------------------------------
Total
operating
expenses 304,075 87,416 35,080 168,151 521,274 (101,326) 1,014,670
--------------------------------------------------------------
Income (loss)
from vessel
operations 52,370 68,381 30,373 24,745 (41,515) - 134,354
--------------------------------------------------------------
Net interest
expense (18,703) (25,752) (4,654) (6,214) (14,446) - (69,769)
Realized and
unrealized
gain (loss)
on
derivative
instruments 61,840 (7,595) 6,842 1,386 142,257 - 204,730
Income tax
(expense)
recovery (1,101) 299 - (277) (191) - (1,270)
Equity income
(loss) from
joint
ventures - 14,006 - (1,012) 25,808 - 38,802
Equity in
earnings of
subsidiaries
(1) - - - - 131,712 (131,712) -
Foreign
exchange
loss (3,602) (1,951) (26) (4,876) (3,398) - (13,853)
Other - net 4,991 (121) - (102) 637 - 5,405
--------------------------------------------------------------
Net income 95,795 47,267 32,535 13,650 240,864 (131,712) 298,399
Less: Net
(income)
loss
attributable
to non-
controlling
interests
(2) (5,450) (1,103) - 114 - (51,096) (57,535)
--------------------------------------------------------------
Net income
attributable
to
stockholders/
unitholders
of publicly-
listed
entities 90,345 46,164 32,535 13,764 240,864 (182,808) 240,864
--------------------------------------------------------------
--------------------------------------------------------------
--------------------------------------------------------------
CASH FLOW
FROM VESSEL
OPERATIONS
(3) 115,295 102,124 39,522 36,641 (8,730) - 284,852
--------------------------------------------------------------
--------------------------------------------------------------
(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.
Commencing in 2009, in accordance with SFAS 160, the Company's net
income (loss) includes income (loss) attributable to non-controlling
interests.
(3) Cash flow from vessel operations represents income from vessel
operations before depreciation and amortization expense, vessel/
goodwill 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.
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 spot tanker charter rates; the Company's financial strength, including the stability of its cash flows, its liquidity position, and debt maturity profile; the Company's annual fixed-rate cash flow from vessel operations; the Company's future capital expenditure commitments and the financing requirements for such commitments; the impact on the Company's profitability through cost reductions and contract improvements; and the impact on the Company's financial leverage and flexibility resulting from its strategy of selling assets to its subsidiary companies, Teekay LNG, Teekay Offshore and Teekay Tankers, including the potential effect of the Company's recent offer to sell the Petrojarl Varg FPSO to Teekay Offshore. 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 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; changes in the Company's expenses; the Company's future capital expenditure requirements; the inability of the Company to complete vessel sale transactions to its daughters or third parties, including the outstanding offer to sell the Petrojarl Varg FPSO to Teekay Offshore; 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, 2008. 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.
Contacts:
Teekay Corporation
Kent Alekson
Investor Relations Enquiries
+1 (604) 844-6654
Teekay Corporation
Nicole Breuls
Media Enquiries
+1 (604) 844-6631
www.teekay.com