Good morning. Welcome to the Fiscal 2015 First Quarter Earnings Conference Call. My name is Bakiva, and I will be your operator for today's call. [Operator Instructions] Please note that this conference is being recorded. I will now turn the call over to Mr. Joe Bennett. Mr. Joe Bennett, you may begin.

Thank you, Bakiva. Good morning, everyone, and welcome to Tidewater's First Quarter Fiscal 2015 Earnings Results Conference Call for the Period Ended June 30, 2014. I'm Joe Bennett, Tidewater's Executive Vice President and Chief Investor Relations Officer, and would like to thank you for your participation in our call this morning and your interest in Tidewater. With me this morning on the call are our President and CEO, Jeff Platt; Quinn Fanning, our Executive Vice President and CFO; Jeff Gorski, our Executive Vice President and Chief Operating Officer; and Bruce Lundstrom, our Executive Vice President, General Counsel and Secretary. We will follow our usual conference call format. Following these formalities, I'll turn the call over to Jeff for his initial comments, to be followed by Quinn's financial review. Jeff will then provide some final wrap-up comments, and we'll then open the call for your questions. During today's conference call, Jeff, Quinn, I and other Tidewater managements, may make certain comments that are forward-looking statements and not statements of historical fact. I know that you understand that there are risks, uncertainties and other factors that may cause the company's actual future performance to be materially different from that stated or implied by any comment that we may make during today's conference call. Additional information concerning the factors that could cause actual results to differ materially from those stated or implied by the forward-looking statements may be found in the Risk Factors section of Tidewater's most recent Form 10-K. With that, I'll turn the call over to Jeff.

Thank you, Joe, and good morning to everyone. Last night, we reported fully diluted earnings per share for the first quarter of our fiscal 2015 of $0.88 compared to $0.61 per share that we reported in the year-ago quarter. As Quinn will detail in a moment, adjusting for foreign exchange movements, our $382 million of vessel revenues in the quarter was at the top end of our previously provided guidance as was our operating expenses of $217 million. As we indicated in our last earnings call, we anticipated that this quarter will reflect good vessel revenue growth. Given that performance, which saw vessel revenues increased by 15% compared to last year's fiscal first quarter and 5% from the previous quarter, our vessel cash operating margin for the quarter also improved, finishing in the middle of the range of our guidance that we had previously provided. Our results for the quarter reflects solid operating performance in line with our general expectations and in line with continued growth in offshore activity. Our new vessel utilization for the quarter held at a solid level in the mid-80% range and included a number of vessel relocations. Likewise, our average vessel day rates on a new vessel fleet increased year-over-year over 9% and sequentially over 7%, partially helped by mob and demob revenues that result from our global operating footprint and movement of vessels between regions. As Quinn will detail shortly, we also made progress during the quarter by halting the increase and beginning to reduce the amount of working capital in our Angolan operations. As expected, we have much additional work to do over the coming quarters, but we are encouraged by the progress we are making. I'll remind everyone that the knock-on effects of the new foreign exchange line in Angola is an industry challenge and not something that is unique to Tidewater. We began this fiscal year on a solid safety note, having experienced no lost time accidents during the quarter, and a Total Recordable Incident Rate, or TRIR, of 0.17 per 200,000 man hours worked. Both of these statistics reflect improved results from our solid safety performance last fiscal year. Let me now turn the call over to Quinn to review the details of the quarter and how we see the near-term outlook. I'll then return to discuss our outlook for the offshore market, including the OSV market and how Tidewater is uniquely positioned within this global market. Quinn?

Thank you, Jeff. Good morning, everyone. As Jeff mentioned, we issued our earnings press release after the market closed last evening. We expect to file our quarterly report on Form 10-Q through the EDGAR filing service some time before the close of business today. Turning to financial results, we reported diluted earnings per common share of $0.88 for the June quarter, which again, is our first quarter of fiscal 2015. Results were flat relative to the March quarter which we also reported EPS of $0.88, and up 29% relative to the June quarter of fiscal 2014 in which we reported adjusted EPS of $0.68 after adjusting for $0.07 in nonrecurring costs, primarily related to the Troms acquisition. Note that both vessel revenue and vessel operating expense for the June quarter, respectively at $382 million and $217 million, were higher by plus $2 million as a result of exchange rate movements and specifically the depreciation of the U.S. dollar relative to the commodity currencies, including the Aussie dollar, the Brazilian real and the Norwegian kroner. The net impact of FX movements on vessel operating margin at $500,000 was relatively modest. Adjusting for FX effects, vessel revenues came in at the high end of the guidance range for the June quarter of $370 million to $380 million that I provided on our last earnings conference call. Vessel OpEx was likewise at the high end of the guidance range of $210 million to $215 million. For reference, vessel revenue for the June quarter was up about 5% quarter-over-quarter and up about 15% year-over-year. Operating costs were up about 5% quarter-over-quarter and up about 11% year-over-year. Below the vessel operating margin line, we also recorded a foreign exchange loss of approximately $1.3 million, which is again related to the weakening of the U.S. dollar…

Thanks, Quinn. Our financial results reflect continued solid operational performance within, what we believe, will be an extended but at times choppy offshore industry up cycle. We understand analysts' and investors' concerns about a potential slowdown in offshore drilling and how it may impact companies such as Tidewater, but we think that concern is somewhat overdone. Over the past 18 months, a number of new offshore rigs have entered service with about 200 more scheduled for delivery over the next 36 months. We have consistently stated that we don't know how many of these new rigs will replace existing units in the offshore rig fleet, but we believe that a good number of the new rigs will be added to the working drilling rig fleet. Additional working rigs mean more OSVs are needed to support those rigs. As often happens when the offshore industry is expanding, there are times when deliveries of additional equipment outpaced the growth and demand for that new equipment. I believe what we're seeing in the offshore market today is akin to indigestion, the symptoms of which are reflected by erosion in the drilling fleet utilization rate and a flattening or possibly a decline in the leading edge offshore rig day rates. And while the offshore rig -- while the offshore market's digestion of newly delivered rigs may negatively impact short-term earnings outlook for many rig owners, it may even negatively impact the longer-term outlook for select rig owners. Our read of the supply demand fundamentals of the OSV industry leads us to believe that the outlook for our business, both in the shorter term and the longer term, is relatively constructive. Today, the issues confronting the offshore drilling markets are as similar to past periods when too many rigs enter the market too quickly. Analysts…

[Operator Instructions] And our first question is going to come from George O'Leary from Tudor, Pickering. George O'Leary - Tudor, Pickering, Holt & Co. Securities, Inc., Research Division: Shallow water utilization was particularly strong on the quarter, especially in the Middle East, North Africa region and Asia Pacific. I was just curious to get your comments on the outlook for the remainder of the year, whether utilization can stay that strong and then keep utilization above 90%, is there a potential for rate increases in those class of vessels in those regions?

Yes, George, we've been waiting to get traction on the rate increase for some time and we've enjoyed relatively high utilization on that vessel class. And so the uptick was getting some vessels onto some contracts in the Mid-East. I can tell you we're trying to move those day rates, but certainly if that utilization, if the rest of the industry matches that and again, that's the big question, it certainly would allow us to move rates. We're trying but it's been pretty slow to get a traction in that.

Perhaps, just to supplement Jeff's comments, George, the reported utilization for the towing-supply fleet company-wide was a bit over 78% for the quarter. That number's obviously dragged down a bit by the handful of stacked vessel that we still have. The active utilization for the comparable towing-supply fleet was about 85% in the June quarter, and we would expect the fiscal year to be at that mid-'80s level and maybe a little bit better quarter-on-quarter out basis. So you're right, what we are what marketing is basically fully employed. George O'Leary - Tudor, Pickering, Holt & Co. Securities, Inc., Research Division: Okay, that's very helpful color. And then on the labor cost inflation front, some of that sounds like or most of it sounds like it pertains to the deep issue in the Middle East. What are you guys seeing, just from an underlying labor inflation, maybe as you look across the full market, how tight is that labor market? And is that what drives you to steer clear from saying that you're confident you can push those crew costs down the last 3 quarters of fiscal year?

One clarification point first is that the issue I referenced in the KSA is actually not labor inflation issue as much as it's a duplicative crew issue. As we transition crews in a normal rotation process, we just -- are having more overlap than we've historically had and hopefully we're going to work kink out over the next couple of quarters. But at least a quarter or 2, we would expect to see additional crude cost but it's a function of more bodies rather than higher rates. In terms of labor trends, I think one of the things that Tidewater uniquely benefits from is that we are exposed to some of the higher cost markets, notably the U.S. Gulf of Mexico, Australia, Brazil, Angola to some extent, but that's not all of our operations. We have a decent spread, I guess, in Myanmar and other places that normally think of when you're thinking of activity levels, and that tends to allow us to rein in, if you will, labor cost. But one of the challenges that we've had on a global basis is certain classes of competency and notably the DP operators have -- had kind of above-trend inflation on a global basis as more companies vessels and others are competing for the same competency sets.

And then our next question is going to come from Daniel Burke from Johnson Rice. Daniel J. Burke - Johnson Rice & Company, L.L.C., Research Division: Maybe one on the outlook. I know we have been looking for vessel-level margins to head towards sort of that 45% threshold and looking forward through the remainder of this fiscal year. In terms of the guidance for 43% to 45%, is crew cost -- is a little bit increment of crew cost what would drive you closer to 43% side of the guidance here in the near September quarter?

I would say the range -- maybe to be precise, the range that I was providing in terms of margin was in regards to the September quarter. We're certainly not throwing in the towel on mid-40s margins for the balance of the year and the year overall. But near term, we have Saudi and other issues. But I would say probably, if history as a guide, our ability to meet the mid-40s level or better would be a function more of our ship maintenance cost. And we can assure you that Jeff Gorski and team are, I think, focused on controlling number of days and drydock and the cost of repairs. Daniel J. Burke - Johnson Rice & Company, L.L.C., Research Division: Okay. Well, Quinn, that's helpful. Maybe a different one on the Americas fleet showed really nice progression, particularly on the top line from Q1 -- or excuse me, from the March to the June quarter. Can you maybe talk about some of the submarkets there, Brazil versus GOM, as contributors to that move? It looked like it was mostly utilization driven if I remember.

Yes, let me give a crack at it. This is Jeff Gorski. Across the Americas, we continue to move some of our Jones Act equipment back to the Gulf of Mexico as things have been improving since post-Macondo. And as Jeff mentioned in his comments, we're seeing those opportunities turned up quite nicely. So we're trying to prepare ourselves, if in fact, there's a little bit of a drag of an overbuild in terms of the rigs. However, some other bright spots have been our operations in the Trinidad area, which isn't specifically only for the geography of Trinidad itself, but also within Central America specifically in that geography. And then as we move down into Brazil, some rSecent movements of some additional activity in Brazil and then Mexico tends to be a strength for us. We've been in Mexico very long time and we've recently added a handful of PSVs off of the African continent into that business. Daniel J. Burke - Johnson Rice & Company, L.L.C., Research Division: Okay, great. And then...

Another thing I mentioned is that active utilization and the Americas region overall was actually pretty flat quarter-over-quarter. But it's really a vessel count-driven issue as we reposition equipment in Americas, and Jeff and team have done a good job in pulling equipment out of the African operations and putting at good rates in U.S., Brazil and elsewhere. Daniel J. Burke - Johnson Rice & Company, L.L.C., Research Division: Okay. And then maybe just last one. Angola, did you all take any incremental vessels out of the market during the June quarter? Are there any plans currently to do so?

We had movements in and out, but I think the overall business was net, we were down several vessels, maybe 3 or 4.

There's a pretty comprehensive update on operations in the filing. If you... Daniel J. Burke - Johnson Rice & Company, L.L.C., Research Division: Yes, I'll check it. Ill check the Q.

And then our next question is going to come from Turner Holm at RS Platou.

Just curious what you're seeing in terms of the trend for leading edge day rates in Sub-Saharan Africa? I believe you guys said that the revenue was down 6% year-over-year, but I guess that's a function of fewer vessels. Just curious about the trend in day rates in that business.

Yes, you're right. I think the decrease is more on vessel count than in change in the day rates. I would say, leading edge day rates, as we have said sort of a deepwater side, they're flattening out, leveling off. Still taking up a little bit of, but boy, the rate of growth in that, that we have over the last couple of years is certainly not at that level. So I would say level to slightly up on lineage day rates, that's both for towing supply and deepwater on the new equipment. And Turner, on the deepwater stuff, as we have explained in the past, most of those legacy contracts that we're signed up 2, 3 -- 1, 2, 3 years ago have rolled over, so it's not unexpected that leading edge in our quoted day rates in that region in other regions for deepwater equipment is flat to maybe up modestly.

Okay. Yes, that's helpful. I'll keep that in mind. And I may have missed this in your statement, but I was curios what was driving the tick up in the non-affiliate receivables may have missed this in your statement, but I was curious what was driving the tick up in the non-affiliate receivables, and curious if you'd expect to see that reverse in the next few quarters.

I would say, there is anything that is systematic or structural that we're concerned about. I think going off memory, July collections were such that they may have been catching up from an inflated balance sheet as of June 30, but also see a growing revenue base as the business is, growing that is driving to some extent receivables growth. Back at Angola is not dramatically different on a month-to-month basis, so from memory.

Okay. All right, that's helpful. And just one quick last one for me. I thought you guys picked up a couple of high-end Asian build vessels for the North Sea with the Troms business. I'm just curious if you see additional opportunity to add Asian build boats in the North Sea, which of course, typically or historically been a market that have used European build vessels, so just curious if that's going to be your strategy going forward? And if you think doing that, you can generate sort of outside returns from that market.

I think the key is to make sure that you don't overpay for the equipment. Obviously, North Sea build equipment comes with a pretty high CapEx, so the key is to find quality equipment in other yards where you don't have the CapEx employed. So to answer your question, yes, we absolutely want to find the right piece of equipment that will work in the North Sea and other places, that minimizes the capital invested. I think ultimately going forward, it's going to be a blend of both. You're going to have to have a portfolio of the high-end built in first world yards and then secondly, you're going to have to look for the best bang for your buck and put your fleet together that way.

And the yards are also key there, those particular vessels you're referring to are build vessels, or Norwegian stacks and they're potentially sister ships of one of the vessels that Troms have built . So it's essentially, Norwegian [indiscernible].

Right, sure. Built with Asian labor prices, yes, I got it.

And then our next question is going to come from Matthias Detjen from Morgan Stanley.

Much of my questions been asked, but I wanted to ask you how you're looking at term coverage. Do you talk about how some of the utilization come up because you've contracted the vessels out? Are we looking at the term coverage going forward and can you maybe say, it's the difference between different regions, how are you looking at that.

Well, we won't go down region-by-region. We just don't do that. But I'll let Jeff Gorski answer that. He can talk about our term coverage. We do monitor that and track that. So Jeff, why don't you take a good shot?

Yes, thanks, Jeff. And this is Jeff Gorski speaking. Actually, we haven't given any color in terms of contract coverage over the last quarter or 2, but it aligns very nicely in terms of our current utilization. So looking a year out, we typically see a contract coverage just around the 50% or low 50%, and we continue to see that. What's of interest though is in the 6-month period looking at contract coverage, that's more closer to the mid-60s. So we are seeing that decent coverage which aligns very well to what you're seeing within vessel utilization.

And at this time, we have no additional questions.

Bakiva, thank you very much for hosting the call today. We appreciate everyone's interest in our company, and look forward to keeping in touch with everyone over the next quarter and talk to you formally in about 3 months. Take care.

Thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.