Hornbeck Offshore Services, Inc., announced record results
for the second quarter ended June 30, 2006.
Second quarter revenues increased 72.0 percent to $70.7mcompared to $41.1m for the second quarter of 2005. Operating income was $32.4m, or 45.8 percent of revenues, for the second quarter of 2006 compared to $13.8m, or 33.6 percent of revenues, for the prior-year quarter. These results were driven by record dayrates in each of the company's business segments and a 45.3 percent increase in the average barrel-carrying capacity of the Hornbeck Offshore tug and tank barge (TTB) fleet. Operating income, as reported, for the second quarter of 2006 includes a $1.4m charge for stock-based compensation expense related to the impact of FAS 123R, which became effective January 1, 2006. Excluding this charge, operating income, as adjusted, was $33.8m, or 47.9 percent of revenues, for the second quarter of 2006.
EBITDA for the second quarter of 2006 was $40.5 million, which was an 88.4% increase over the second quarter 2005 EBITDA of $21.5 million and exceeded the high-end of the Company's second quarter 2006 guidance range of $35.8 million to $37.8 million. Excluding the impact of FAS 123R, adjusted EBITDA for the second quarter of 2006 was $41.9 million. For additional information regarding EBITDA as a non-GAAP financial measure, please see Note 8 to the accompanying data tables.
Net income for the second quarter of 2006 was $20.3m, or $0.73 per diluted share, compared to $7.7m, or $0.36 per diluted share in the year-ago quarter. Excluding the impact of FAS 123R, adjusted net income for the second quarter of 2006 was $21.2m, or $0.77 per diluted share. Diluted EPS for the second quarter of 2006 was double the diluted EPS for second quarter of 2005, despite having an additional 6.4m diluted shares outstanding in the second quarter of 2006.
Included in net income for the second quarter of 2006 was approximately $3.6 million ($2.3 million after-tax, or $0.08 per diluted share) of interest income, up from $0.1 million in the second quarter of 2005. This increase in interest income was due to a substantially higher cash position resulting from proceeds raised during the Company's October 2005 debt and equity offerings. Also included in second quarter 2006 net income was a $0.3 million ($0.2 million after-tax, or $0.01 per diluted share) gain on the sale of the Energy 2202, one of the Company's smallest, single-hulled barges. In the second quarter of 2005, net income included a gain on the sale of assets of $1.1 million ($0.7 million after-tax, or $0.03 per diluted share) resulting from the disposition of one single-hulled tank barge and one offshore tug.