UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_________________________
FORM 6-K
_________________________
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
Date of Report:
May 11, 2023
Commission file number 1- 12874
_________________________
TEEKAY CORPORATION
(Exact name of Registrant as specified in its charter)
_________________________
4th Floor, Belvedere Building
69 Pitts Bay Road
Hamilton, HM 08 Bermuda
(Address of principal executive offices)
_________________________
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F
y
Form 40- F
..
Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
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Item 1 - Information Contained in this Form 6-K Report
Attached as Exhibit 1 is a copy of an announcement of Teekay Corporation dated
May 11, 2023
.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
TEEKAY CORPORATION
Date: May 11, 2023 By: /s/ Brody Speers
Brody Speers
Vice President, Finance & Treasurer (Principal Financial and Accounting Officer)
Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
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TEEKAY CORPORATION REPORTS
FIRST QUARTER 2023 RESULTS
Highlights
.
GAAP net income attributable to shareholders of Teekay of $48.8 million, or
$0.49 per share, and adjusted net income attributable to shareholders of Teekay
(2)
of $51.0 million, or $0.52 per share, in the first quarter of 2023 (excluding
items listed in
Appendix A
to this release).
.
Tanker market remains firm with Teekay Tankers securing second quarter 2023
to-date spot rates of $62,400 per day for its Suezmax fleet and $58,500 per
day for its Aframax fleet.
.
Teekay Parent completed its $30 million common share repurchase program that
was announced in August 2022 and announced a new $30 million common share
repurchase program in March 2023. Since reporting earnings last quarter,
Teekay Parent has repurchased a further $27.1 million of its outstanding
common shares, bringing the total repurchased since the beginning of our
programs in August 2022 to $45.8 million at an average price of $4.93 per
share.
.
Teekay Tankers announces an update to its capital allocation plan, which
includes a fixed quarterly cash dividend of $0.25 per com
mon share, with the initial dividend having been declared for the quarter
ended March 31, 2023. In addition, the Teekay Tankers board declared a special
dividend of $1.00 per share and authorized a share repurchase program for the
repurchase of up to $100 million of its outstanding Class A common shares.
Hamilton, Bermuda,
May 11, 2023
- Teekay Corporation (
Teekay
or
the Company
) (NYSE:TK) today reported results for the three months ended March 31, 2023.
These results include the Company's publicly-listed consolidated subsidiary,
Teekay Tankers Ltd. (
Teekay Tankers
) (NYSE:TNK), and all remaining subsidiaries and equity-accounted investments.
Teekay, together with its subsidiaries other than Teekay Tankers, is referred
to in this release as
Teekay Parent
. Please refer to the first quarter of 2023 earnings release of Teekay
Tankers, which is available on Teekay's website at
www.teekay.com
,
for additional information on Teekay Tankers' results.
Financial Summary
Three Months Ended
March 31, December 31, March 31,
(in thousands of U.S. dollars, 2023 2022 2022
except per share amounts) (1)
(unaudited) (unaudited) (unaudited)
TEEKAY CORPORATION
CONSOLIDATED
GAAP FINANCIAL COMPARISON
Revenues 418,701 393,479 212,720
Income (loss) from 179,837 148,163 (12,574)
vessel operations
Net income attributable to 48,763 39,104 888
the shareholders of Teekay
Earnings per common 0.49 0.39 0.01
share of Teekay
NON-GAAP FINANCIAL
COMPARISON
Adjusted EBITDA 203,802 173,449 30,486
(2)
Adjusted net income (loss) 51,017 44,319 (528)
attributable to shareholders of Teekay
(2)
Adjusted net earnings (loss) per share 0.52 0.44 (0.01)
attributable to shareholders of Teekay
(2)
As at March 31, As at December 31, As at March 31,
(in thousands of U.S. dollars, 2023 2022 2022
except number of shares)
(unaudited) (unaudited) (unaudited)
TEEKAY PARENT
Net cash 291,020 318,161 289,988
(3)
Market value of investment 414,803 297,696 146,271
in Teekay Tankers
(4)
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Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
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(1)
As a result of Stonepeak's acquisition of Teekay LNG Partners L.P. (
Teekay LNG
) (now known as Seapeak LLC) in January 2022, certain information in this
release presents Teekay LNG and various subsidiaries that provided the
shore-based operations for Teekay LNG and certain of Teekay LNG's joint
ventures under management services contracts (collectively,
the Teekay Gas Business
) as a discontinued operation.
(2)
These are non-GAAP financial measures. Please refer to "Definitions and
Non-GAAP Financial Measures" and the Appendices to this release for
definitions of these terms and reconciliations of these non-GAAP financial
measures as used in this release to the most directly comparable financial
measures under United States generally accepted accounting principles (
GAAP
). These measures include results from both continuing and discontinued
operations.
(3)
Teekay Parent net cash as of March 31, 2023 includes cash and cash equivalents
and short-term investments. Teekay Parent's net cash position decreased
compared to December 31, 2022, primarily due to Teekay Parent's common share
repurchases and changes in working capital. As at March 31, 2023, Teekay
Parent's remaining recycling costs are estimated to be approximately $7.7
million, which are expected to be paid through mid-2024
.
(4)
As at March 31, 2023, December 31, 2022, and March 31, 2022, Teekay Parent
owned 9.7 million, 9.7 million, and 10.6 million Teekay Tankers Class A and B
common shares, respectively, and, as of such dates, the closing prices of
Teekay Tankers Class A common shares were $42.93 per share, $30.81 per share,
and $13.84 per share, respectively.
CEO Commentary
"Teekay posted strong financial results in the first quarter of 2023,
reporting the Company's highest consolidated quarterly net earnings per share
in 14 years," commented Kenneth Hvid, Teekay's President and CEO. "In
addition, Teekay Tankers reported record earnings and cash flows with
mid-sized spot charter rates rising to the highest-ever for a first quarter on
the back of robust market fundamentals. Spot charter rates for Teekay Tankers'
fleet so far in the second quarter of 2023 remain firm, with its combined
Suezmax and Aframax fleet spot rates averaging approximately $60,000 per day
based on our bookings to-date."
"The strong tanker market has enabled Teekay Tankers to transform its balance
sheet, create significant equity value, and achieve much greater financial
flexibility. As a result, Teekay Tankers has updated its capital allocation
plan to include continuing to build financial strength to position the company
to act on future investment opportunities at the right point in the cycle,
while also returning capital to shareholders. Under this capital allocation
plan, Teekay Tankers has implemented a fixed quarterly dividend of $0.25 per
share, or $1.00 per share annually, with the first dividend relating to the
first quarter of 2023. In addition, the Teekay Tankers board has declared a
special dividend of $1.00 per share, for a total dividend of $1.25 per share,
from which Teekay Parent's portion will total approximately $12 million and
will be paid in June 2023. Lastly, Teekay Tankers also announced a $100
million Class A common share repurchase program that is expected to be used
opportunistically."
"Since reporting earnings last quarter, Teekay Parent has continued to return
capital to its shareholders in an accretive manner. Following the completion
of our $30 million share repurchase program that was announced in August 2022,
we announced a new $30 million repurchase program in March 2023. Since that
time, we have repurchased 2.8 million common shares for $15.8 million. Since
August 2022, we have repurchased 9.3 million common shares, or approximately
9.1% of the outstanding common shares immediately prior to commencement of the
prior program, at an average price of $4.93 per share."
2
Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
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Summary of Results
The Company's GAAP net income attributable to shareholders of Teekay and the
Company's adjusted net income attributable to shareholders of Teekay
(1)
for the first quarter of 2023 increased compared to the same quarter of the
prior year, primarily due to stronger earnings from Teekay Tankers as a result
of higher spot tanker rates, which was partially offset by the loss of
earnings contribution from the Teekay Gas Business as a result of the sale of
the Teekay Gas Business on January 13, 2022.
In addition, consolidated GAAP net income attributable to shareholders of
Teekay increased during the first quarter of 2023, compared to the same
quarter of the prior year, mainly due to
$12.4 million in losses on bond repurchases recognized in the first quarter of
2022.
The following table highlights the operating performance of Teekay Tankers'
vessels trading in revenue sharing arrangements (
RSAs
), voyage charters and full service lightering, in each case measured in net
revenues
(a)
per revenue day, or time-charter equivalent (
TCE
) rates, before off-hire bunker expenses:
Three Months Ended
March 31, 2023 December 31, 2022 March 31, 2022
(b) (b) (b)
Suezmax revenue days 2,249 2,261 2,175
Suezmax spot TCE per revenue day $55,891 $56,008 $13,786
Aframax / LR2 revenue days 1,971 1,963 1,955
Aframax / LR2 spot TCE per revenue day $67,346 $52,136 $16,229
(a)
Net revenues
is a non-GAAP financial measure. Please refer to "Definitions and Non-GAAP
Financial Measures" for a definition of this term.
(b)
Revenue days
are the total number of calendar days Teekay Tankers' vessels were in its
possession during a period, less the total number of off-hire days during the
period associated with major repairs or modifications, dry dockings or special
or intermediate surveys. Consequently, revenue days represent the total number
of days available for the vessel to earn revenue. Idle days, which are days
when the vessel is available to earn revenue but is not employed, are included
in revenue days.
Please refer to Teekay Tankers' first quarter of 2023 earnings release for
additional information on its financial results.
(1) This is a non-GAAP financial measure. Please refer to "Definitions and
Non-GAAP Financial Measures" and the Appendices to this release for a
definition of this term and a reconciliation of this non-GAAP financial
measure as used in this release to the most directly comparable financial
measures under GAAP.
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Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
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Summary of Recent Events
Teekay Parent
In March 2023,
Teekay's Board of Directors approved a new $30 million common share repurchase
program following the completion of
its $30 million common share repurchase program that was announced in August
2022
. Since August 2022, Teekay has repurchased a total of approximately 9.3
million common shares, or approximately 9.1% of the outstanding common shares
immediately prior to commencement of the prior program, for a total cost of
$45.8 million, representing an average repurchase price of $4.93 per share.
Teekay Tankers
Teekay Tankers has announced an update to its capital allocation plan that
includes paying a regular, fixed quarterly cash dividend of $0.25 per common
share,
with the initial quarterly dividend having been declared
for the quarter ended March 31, 2023. In addition, the Teekay Tankers board of
directors declared a special cash dividend of $1.00 per common share. The cash
dividends are payable on June 2, 2023 to all of Teekay Tankers' shareholders
of record on May 22, 2023.
Teekay Tankers' board of directors has also authorized a share repurchase
program for the repurchase of up to $100 million of Teekay Tankers'
outstanding Class A common shares. Under the program, repurchases can be made
from time to time in the open market, through privately negotiated
transactions and by any other means permitted under the rules of the U.S.
Securities and Exchange Commission, in each case at times and prices
considered appropriate by Teekay Tankers. The timing of any purchases and the
exact number of shares to be purchased under the program will be subject to
the discretion of Teekay Tankers.
In March 2023, Teekay Tankers took delivery of a previously-announced
chartered-in Aframax vessel at a rate of $35,750 per day for 24 months with an
option to extend for an additional 12 months. Currently, Teekay Tankers has
eight vessels on charter-in contracts with an average rate of $24,300 per day.
In
May
2023, Teekay Tankers signed a new $350 million secured revolving credit
facility agreement to refinance 19 vessels, including nine vessels repurchased
from sale-leaseback arrangements in March 2023 with cash, six vessels that
will be repurchased by Teekay Tankers in May 2023 from sale-leaseback
arrangements, and a further four vessels that are expected to be repurchased
in the third quarter of 2023 from their respective sale-leaseback arrangements.
The following table presents Teekay Tankers' TCE rates booked to-date in the
second quarter of 2023 for its spot-traded fleet only, together with the
percentage of total revenue days currently fixed for the second quarter:
Q2 To-Date Spot Tanker Rates
Avg. TCE Rates Per Day % Fixed
Suezmax $62,400 44%
Aframax / LR2 $58,500 41%
(1)
(1) Rates and percentage booked to-date include Aframax RSA and non-RSA
voyage charters and full service lightering for all Aframax and LR2 vessels,
whether trading in the clean or dirty spot market.
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Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
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About Teekay
Teekay is a l
eading provider of international crude oil marine transportation and other
marine services. Teekay provides these services directly and through its
controlling ownership interest in Teekay Tankers Ltd. (NYSE: TNK), one of the
world's largest owners and operators of mid-sized crude tankers. The
consolidated Teekay entities manage and operate total assets under management
of over $2 billion, comprised of approximately 65 conventional tankers and
other marine assets, including vessels operated for the Australian government.
With offices in 8 countries and approximately 2,300 seagoing and shore-based
employees, Teekay provides a comprehensive set of marine services to the
world's leading energy companies.
Teekay's common stock is listed on the New York Stock Exchange where it trades
under the symbol "TK".
For Investor Relations enquiries:
E-mail: investor.relations@teekay.com
Website:
www.teekay.com
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Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
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Definitions and Non-GAAP Financial Measures
This release includes various financial measures that are non-GAAP financial
measures as defined under the rules of the Securities and Exchange Commission (
SEC
). These non-GAAP financial measures, which include Adjusted Net Income
Attributable to Shareholders of Teekay, Adjusted EBITDA and Net Revenues, are
intended to provide additional information and should not be considered
substitutes for measures of performance prepared in accordance with GAAP. In
addition, these measures do not have standardized meanings across companies,
and therefore may not be comparable to similar measures presented by other
companies. The Company believes that certain investors use this information to
evaluate the Company's financial performance, as does management.
Non-GAAP Financial Measures
Adjusted Net Income Attributable to Shareholders of Teekay
excludes items of income or loss from GAAP net income that are typically
excluded by securities analysts in their published estimates of the Company's
financial results. The Company believes that certain investors use this
information to evaluate the Company's financial performance, as does
management. Please refer to
Appendix A
of this release for a reconciliation of this non-GAAP financial measure to net
income, the most directly comparable GAAP measure reflected in the Company's
consolidated financial statements.
Adjusted EBITDA
represents EBITDA (i.e., net income before interest, taxes, depreciation and
amortization), adjusted to exclude certain items whose timing or amount cannot
be reasonably estimated in advance or that are not considered representative
of core operating performance. Such adjustments include foreign currency
exchange gains and losses, write-downs and/or gains and losses on sale of
operating assets, unrealized gains and losses on derivative instruments,
credit loss provision adjustments, loss on bond repurchases, loss on
deconsolidation, equity income (loss), and other income or loss, for both
continuing operations and discontinued operations.
Adjusted EBITDA
also excludes realized gains or losses on interest rate swaps (as management,
in assessing the Company's performance, views these gains or losses as an
element of interest expense), and realized gains or losses on interest rate
swaps resulting from amendments or terminations of the underlying instruments,
both for continuing and discontinued operations.
Adjusted EBITDA is a non-GAAP financial measure used by certain investors and
management to measure the operational performance of companies. Please refer to
Appendix C
of this release for reconciliations of Adjusted EBITDA to net income, from
continuing and discontinued operations, which are the most directly comparable
GAAP measures reflected in the Company's consolidated financial statements.
Net revenues
represents income (loss) from operations before vessel operating expenses,
time-charter hire expenses, depreciation and amortization, general and
administrative expenses, gain on sale and write-down of assets, and
restructuring charges. Since the amount of voyage expenses the Company incurs
for a particular charter depends on the type of the charter, the Company
includes these costs in net revenues to improve the comparability between
periods of reported revenues that are generated by the different types of
charters and contracts. The Company principally uses net revenues, a non-GAAP
financial measure, because the Company believes it provides more meaningful
information about the deployment of the Company's vessels and their
performance than does income (loss) from operations, the most directly
comparable financial measure under GAAP.
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Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
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Teekay Corporation
Summary Consolidated Statements of Income (Loss)
(in thousands of U.S. dollars, except share and per share data)
Three Months Ended
March 31, December 31, March 31,
2023 2022 2022
(1)
(unaudited) (unaudited) (unaudited)
Revenues 418,701 393,479 212,720
Voyage expenses (124,187) (131,989) (101,622)
Vessel operating expenses (60,922) (63,351) (71,941)
Time-charter hire expenses (12,945) (8,035) (5,550)
Depreciation and amortization (23,975) (24,459) (25,080)
General and (15,216) (13,671) (16,083)
administrative expenses
Write-down of assets - - (421)
Restructuring charges (1,619) (3,811) (4,597)
(2)
Income (loss) from 179,837 148,163 (12,574)
vessel operations
Interest expense (11,377) (9,762) (10,002)
Interest income 5,588 3,916 297
Realized and unrealized (losses) (98) 581 1,967
gains on derivative instruments
Equity income (loss) 1,130 1,708 (754)
Loss on bond repurchases - - (12,410)
Income tax (expense) recovery (2,601) (1,121) 636
Other - net (2,566) 340 (283)
Net income (loss) from 169,913 143,825 (33,123)
continuing operations
Loss from discontinued operations - - (20,276)
(3)
Net income (loss) 169,913 143,825 (53,399)
Net (income) loss attributable (121,150) (104,721) 54,287
to non-controlling interests
(3)
Net income attributable to the 48,763 39,104 888
shareholders of Teekay Corporation
Amounts attributable to the
shareholders of Teekay Corporation
Income (loss) from 169,913 143,825 (33,123)
continuing operations
Net income attributable to non-controlling (121,150) (104,721) (7,641)
interests, continuing operations
Net income (loss) attributable to the shareholders 48,763 39,104 (40,764)
of Teekay Corporation, continuing operations
Loss from discontinued operations - - (20,276)
Net loss attributable to non-controlling - - 61,928
interests, discontinued operations
(3)
Net income attributable to the
shareholders of Teekay Corporation,
discontinued operations - - 41,652
Net income attributable to the 48,763 39,104 888
shareholders of Teekay Corporation
Earnings (loss) per common share
(4)
of Teekay Corporation,
continuing operations
- $ 0.49 $ 0.39 $ (0.40)
Basic
- $ 0.48 $ 0.38 $ (0.40)
Diluted
Earnings per common share
(4)
of Teekay Corporation,
discontinued operations
- $ - $ - $ 0.41
Basic
- $ - $ - $ 0.41
Diluted
Earnings (loss) per common share
(4)
of Teekay Corporation
- $ 0.49 $ 0.39 $ 0.01
Basic
- $ 0.48 $ 0.38 $ 0.01
Diluted
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Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
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(1)
The presentation of certain information in these consolidated financial
statements reflects the Teekay Gas Business as a discontinued operation of the
Company, and historical comparative periods presented have been recast as a
result.
(2)
The three months ended March 31, 2023, includes restructuring charges related
to organizational changes made to its commercial and technical operations
teams. The three months ended December 31, 2022, and March 31, 2022, includes
restructuring charges related to the reorganization and realignment of the
Company's shared service functions following the sale of the Teekay Gas
Business including costs associated with the separation of information
technology systems, of which $2.4 million was recovered from Seapeak LLC and
was recorded as part of revenues on the consolidated statements of income for
the three months ended March 31, 2022.
(3)
Loss from discontinued operations for the three months ended March 31, 2022
includes a $58.7 million loss on deconsolidation of the Teekay Gas Business.
Net loss attributable to non-controlling interests, discontinued operations
for the three months ended March 31, 2022 includes the realization of a
deferred gain of $84.8 million relating to the intercompany sale of certain
vessels from Teekay to the Teekay Gas Business in previous years, which was
recognized upon the sale of the Teekay Gas Business. Together, these items
resulted in a net gain of $26.2 million related to the deconsolidation of the
Teekay Gas Business.
(4)
Includes common shares related to non-forfeitable stock-based compensation.
Three Months Ended
March 31, December 31, March 31,
2023 2022 2022
(unaudited) (unaudited) (unaudited)
Weighted-average number of common shares outstanding
- Basic 98,521,611 101,031,403 102,347,141
- Diluted 100,476,663 103,858,918 102,347,141
Number of outstanding shares of common stock at end of period 96,027,318 98,318,395 101,693,253
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Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
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Teekay Corporation
Summary Consolidated Balance Sheets
(in thousands of U.S. dollars)
As at March 31, As at December 31,
2023 2022
(unaudited) (unaudited)
ASSETS
Cash and cash equivalents - Teekay Parent 82,768 129,345
Cash and cash equivalents - Teekay Tankers 169,751 180,512
Short-term investments - Teekay Parent 208,252 210,000
(1)
Accounts receivable and other current assets 279,387 239,202
Bunker and lube oil inventory 64,421 60,832
Restricted cash - Teekay Tankers 6,838 6,849
Vessels and equipment - Teekay Tankers 1,229,947 1,253,368
Operating lease right-of-use assets 92,691 42,894
Net investment in and loans to equity-accounted investment 17,328 16,198
Other non-current assets 23,804 25,646
Total Assets 2,175,187 2,164,846
LIABILITIES AND EQUITY
Accounts payable and other current liabilities 134,760 134,342
Current portion of long-term debt - Teekay Parent - 21,184
Current portion of long-term debt and finance leases - Teekay Tankers 41,730 60,161
Long-term debt and finance leases - Teekay Tankers 316,728 472,599
Operating lease liabilities 93,038 43,443
Other long-term liabilities 61,684 63,511
Equity:
Non-controlling interests 868,146 746,143
Shareholders of Teekay 659,101 623,463
Total Liabilities and Equity 2,175,187 2,164,846
Net (cash) debt - Teekay Parent (291,020) (318,161)
(2)
Net debt - Teekay Tankers 181,869 345,399
(2)
(1)
Short-term investments - Teekay Parent includes various bank term deposits
with a diversified bank group that have initial maturity dates of more than
three months but less than one year from the origination date.
(2)
Net (cash) debt is a non-GAAP financial measure and represents (a) short-term
debt, current portion of long-term debt and current obligations related to
finance leases, and long-term debt and long-term obligations related to
finance leases, less (b) cash and cash equivalents, and, if applicable,
restricted cash and short-term investments.
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Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
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Teekay Corporation
Summary Consolidated Statements of Cash Flows
(in thousands of U.S. dollars)
Three Months Ended
March 31,
2023 2022
(unaudited) (unaudited)
Cash, cash equivalents and restricted cash provided by (used for)
OPERATING ACTIVITIES
Net income (loss) 169,913 (53,399)
Less: loss from discontinued operations - 20,276
Income (loss) from continuing operations 169,913 (33,123)
Non-cash and non-operating items:
Depreciation and amortization 23,975 25,080
Write-down of assets - 421
Other 7,765 18,087
Change in operating assets and liabilities:
Change in other operating assets and liabilities (44,675) (50,459)
Asset retirement obligation expenditures (80) -
Expenditures for dry docking (1,465) (2,138)
Net operating cash flow - continuing operations 155,433 (42,132)
Net operating cash flow - discontinued operations - 26,866
Net operating cash flow 155,433 (15,266)
FINANCING ACTIVITIES
Prepayments of long-term debt - (494,104)
Scheduled repayments of long-term debt (21,184) (51,299)
Proceeds from short-term debt 25,000 23,000
Prepayments of short-term debt (25,000) (20,000)
Proceeds from financings related to sales and leaseback of vessels, net of issuance costs - 175,341
Prepayment of obligations related to finance leases (164,252) -
Scheduled repayments of obligations related to finance leases (13,397) (6,718)
Purchase of Teekay Tankers common shares - (5,269)
Repurchase of Teekay Corporation common shares (14,845) -
Other financing activities (410) (985)
Net financing cash flow - continuing operations (214,088) (380,034)
Net financing cash flow - discontinued operations - -
Net financing cash flow (214,088) (380,034)
INVESTING ACTIVITIES
Expenditures for vessels and equipment (442) (4,071)
Decrease (increase) in short-term investments 1,748 (220,000)
Proceeds from sale of vessels and equipment - 16,002
Proceeds from the sale of the Teekay Gas Business, net of cash sold - 454,789
Net investing cash flow - continuing operations 1,306 246,720
Net investing cash flow - discontinued operations - -
Net investing cash flow 1,306 246,720
Decrease in cash, cash equivalents and restricted cash (57,349) (148,580)
Cash, cash equivalents and restricted cash, beginning of the period 316,706 265,520
Cash, cash equivalents and restricted cash, end of the period 259,357 116,940
10
Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
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Teekay Corporation
Appendix A - Reconciliation of Non-GAAP Financial Measures
Adjusted Net Income Attributable to Shareholders of Teekay
(in t
housands of U.S. dollars, except per share data)
Three Months Ended
March 31, December 31, March 31,
2023 2022 2022
(unaudited) (unaudited) (unaudited)
$ Per $ Per $ Per
$ Share $ Share $ Share
(1) (1) (1)
Net income (loss) - GAAP basis 169,913 143,825 (53,399)
Adjust for: Net (income) loss attributable to
non-controlling interests (121,150) (104,721) 54,287
Net income attributable to
shareholders of Teekay 48,763 0.49 39,104 0.39 888 0.01
(Subtract) add specific items affecting net income (loss)
Unrealized losses (gains) from derivative instruments 584 0.01 621 0.01 (2,140) (0.02)
FPSO decommissioning costs, net of recoveries 213 - 2,238 0.02 1,612 0.02
Write-down of assets - - - - 421 -
Restructuring charges, net of recoveries 1,619 0.02 3,811 0.04 2,209 0.02
Items relating to discontinued operations - - - - 36,594 0.36
(2)
Loss on bond repurchases and other 3,809 0.04 (679) (0.01) 14,319 0.14
(3)
Non-controlling interests' share of items above (3,971) (0.04) (776) (0.01) (54,431) (0.53)
(4)
Total adjustments 2,254 0.02 5,215 0.05 (1,416) (0.01)
Adjusted net income (loss) attributable to
shareholders of Teekay 51,017 0.52 44,319 0.44 (528) (0.01)
(1)
Basic per share amounts.
(2)
Primarily relates to items presented in loss from discontinued operations on
the consolidated statements of income, including unrealized gains on
derivative instruments. Also includes the loss on deconsolidation of $58.7
million in the three months ended March 31, 2022.
(3)
Includes costs related to the early termination of certain obligations related
to finance leases in the three months ended March 31, 2023. Includes a loss on
the repurchase in full of Teekay's 9.25% senior secured notes due November
2022 and a loss on repurchases of Teekay's 5% Convertible Notes due January
2023 in the three months ended March 31, 2022. Refer to footnote (3) of the
Summary
Consolidated Statements of Income
. Also includes foreign currency exchange losses (gains).
(4)
Items affecting net income include items from the Company's consolidated
non-wholly-owned subsidiaries. The specific items affecting net income are
analyzed to determine whether any of the amounts originated from a
consolidated non-wholly-owned subsidiary. Each amount that originates from a
consolidated non-wholly-owned subsidiary is multiplied by the non-controlling
interests' percentage share in this subsidiary to determine the non-controlling
interests' share of the amount. The amount identified as "Non-controlling
interests' share of items above" in the table above is the cumulative amount
of the non-controlling interests' proportionate share of items listed in the
table.
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Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
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Teekay Corporation
Appendix B - Supplemental Financial Information
Summary Statement of Income for the Three Months Ended
March 31, 2023
(in thousands of U.S. dollars)
(unaudited)
Teekay Teekay Consolidation Total
Tankers Parent Adjustments
(1)
Revenues 394,657 24,044 - 418,701
Voyage expenses (124,187) - - (124,187)
Vessel operating expenses (38,182) (22,740) - (60,922)
Time-charter hire expense (12,945) - - (12,945)
Depreciation and amortization (23,975) - - (23,975)
General and administrative expenses (12,269) (2,947) - (15,216)
Restructuring charges (1,248) (371) - (1,619)
Income (loss) from vessel operations 181,851 (2,014) - 179,837
Interest expense (11,218) (159) - (11,377)
Interest income 2,230 3,358 - 5,588
Realized and unrealized loss on
derivative instruments (98) - - (98)
Equity income 1,130 - - 1,130
Equity in income of subsidiaries - 48,218 (48,218) -
(2)
Income tax expense (2,282) (319) - (2,601)
Other - net (2,245) (321) - (2,566)
Net income from continuing
operations 169,368 48,763 (48,218) 169,913
Net income attributable to
non-controlling interests - - (121,150) (121,150)
(3)
Net income attributable
to shareholders/unitholders
of publicly-listed entities 169,368 48,763 (169,368) 48,763
(1)
Consolidation Adjustments column includes adjustments which eliminate
transactions between Teekay Tankers and Teekay Parent.
(2)
Teekay Corporation's proportionate share of the net income of its
publicly-traded subsidiary, Teekay Tankers.
(3)
Net income attributable to non-controlling interests represents the public's
share of the net income of Teekay's publicly-traded subsidiary.
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Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
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Teekay Corporation
Appendix C - Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDA
(in thousands of U.S. dollars)
Three Months Ended
March 31, December 31, March 31,
2023 2022 2022
(unaudited) (unaudited) (unaudited)
Net income (loss) 169,913 143,825 (53,399)
Depreciation and amortization 23,975 24,459 25,080
Interest expense, net of interest income 5,789 5,846 9,705
Income tax expense (recovery) 2,601 1,121 (636)
EBITDA 202,278 175,251 (19,250)
Specific income statement items affecting EBITDA:
Write-down of assets - - 421
Unrealized losses (gains) from derivative instruments 584 621 (2,140)
Realized (gains) losses from interest rate swaps (496) (375) 67
Equity (income) loss (1,130) (1,708) 754
Loss on bond repurchases - - 12,410
Other - net 2,566 (340) 283
Items relating to income from discontinued operations - - 37,941
(1)
Consolidated Adjusted EBITDA 203,802 173,449 30,486
(1)
Includes amounts presented in income from discontinued operations on the
consolidated statements of income.
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Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
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Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section
27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the
U.S. Securities Exchange Act of 1934, as amended. All statements included in
this report, other than statements of historical fact, are forward-looking
statements. When used in this report, the words "expect," "believe,"
"anticipate," "plan," "intend," "estimate," "may," "will" or similar words are
intended to identify forward-looking statements. Readers are cautioned not to
place undue reliance on these forward-looking statements and any such
forward-looking statements are qualified in their entirety by reference to the
following cautionary statements. All forward-looking statements speak only as
of the date hereof and are based on current expectations and involve a number
of assumptions, risks and uncertainties that could cause actual results to
differ materially from such forward-looking statements. Forward-looking
statements contained in this release include, among others, statements
regarding: management's expectations regarding tanker market fundamentals;
Teekay Tankers' updated capital allocation plan, including its ability to
position itself to pursue future investment opportunities and return capital
to shareholders, including through quarterly cash dividends; the amount and
timing of payments of cash dividends from Teekay Tankers; the expected amount
and timing of repurchases of Teekay's common shares and of Teekay Tankers'
Class A common shares under their respective share repurchase programs; the
occurrence and expected timing of repurchases of Teekay Tankers' vessels from
sale-leaseback arrangements; and Teekay Parent's expectations regarding the
amounts and settlements of recycling costs related to the
Petrojarl Foinaven
FPSO.
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:
the availability to Teekay of appropriate future growth opportunities and
Teekay's financial or other ability to pursue such opportunities; changes in
the demand for oil, refined products and tankers; changes in trading patterns
affecting overall vessel tonnage requirements; greater or less than
anticipated levels of vessel newbuilding orders and deliveries and greater or
less than anticipated rates of vessel scrapping; changes in global oil prices
or tanker rates; OPEC+ and non-OPEC+ production and supply levels; issues with
vessel operations; higher than expected costs and expenses, off-hire days or
dry-docking requirements (both scheduled and unscheduled); higher than
expected costs and/or delays associated with the recycling of the
Petrojarl Foinaven
FPSO; changes in applicable industry laws and regulations and the timing of
implementation of new laws and regulations; the status of Russia's invasion of
Ukraine and related sanctions, import and other restrictions; the impact of
geopolitical tensions and changes in global economic conditions; Teekay
Tankers' available cash and the levels of its capital needs, as well as the
declaration by Teekay Tankers' board of directors of any future common share
cash dividends; and other factors discussed in Teekay's filings from time to
time with the SEC, including its Annual Report on Form 20-F for the fiscal
year ended December 31, 2022. Teekay 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 Teekay's expectations
with respect thereto or any change in events, conditions or circumstances on
which any such statement is based.
14
Teekay Corporation
Investor Relations Tel: +1 604 609 2963 www.teekay.com
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