Teekay Corporation Reports Third Quarter Results

HAMILTON, BERMUDA--(Marketwired - Nov 7, 2013) -

Highlights

  • Third quarter 2013 total cash flow from vessel operations of $195.2 million, up from $183.6 million in the prior quarter.
  • Third quarter 2013 adjusted net loss attributable to stockholders of Teekay of $36.0 million, or $0.51 per share (excluding specific items which increased GAAP net loss by $13.1 million, or $0.18 per share).
  • The Voyageur Spirit FPSO repairs have been completed and the unit has been on charter since August 27, 2013.
  • Teekay Offshore and Teekay LNG management both intend to recommend a quarterly cash distribution increase of 2.5 percent for the fourth quarter distributions payable in February 2014, which would further add to Teekay Corporation's general partnership cash flows.
  • Total consolidated liquidity of approximately $1.4 billion as at September 30, 2013, pro forma for Teekay LNG's equity offering completed in early October 2013.

Teekay Corporation (Teekay or the Company) (TK) today reported an adjusted net loss attributable to stockholders of Teekay(1) of $36.0 million, or $0.51 per share, for the quarter ended September 30, 2013, compared to an adjusted net loss attributable to stockholders of Teekay of $20.0 million, or $0.29 per share, for the same period of the prior year. Adjusted net loss attributable to stockholders of Teekay excludes a number of specific items that had the net effect of increasing GAAP net loss by $13.1 million, or $0.18 per share, for the three months ended September 30, 2013 and increasing GAAP net loss by $0.3 million, or $0.00 per share, for the same period of the prior year, as detailed in Appendix A to this release. Including these items, the Company reported on a GAAP basis, net loss attributable to stockholders of Teekay of $49.1 million, or $0.69 per share, for the quarter ended September 30, 2013, compared to net loss attributable to stockholders of Teekay of $20.3 million, or $0.29 per share, for the same period of the prior year. Net revenues(2) for the third quarter of 2013 were $426.8 million, compared to $440.0 million for the same period of the prior year.

For the nine months ended September 30, 2013, the Company reported an adjusted net loss attributable to stockholders of Teekay(1) of $81.0 million, or $1.15 per share, compared to an adjusted net loss attributable to stockholders of Teekay of $57.8 million, or $0.84 per share, for the same period of the prior year. Adjusted net loss attributable to stockholders of Teekay excludes a number of specific items that had the net effect of decreasing GAAP net loss by $37.1 million, or $0.53 per share, for the nine months ended September 30, 2013 and increasing GAAP net loss by $8.7 million, or $0.12 per share, for the same period of the prior year, as detailed in Appendix A to this release. Including these items, the Company reported on a GAAP basis, net loss attributable to stockholders of Teekay of $43.9 million, or $0.62 per share, for the nine months ended September 30, 2013, compared to net loss attributable to stockholders of Teekay of $66.5 million, or $0.96 per share, for the same period of the prior year. Net revenues(2) for the nine months ended of 2013 were $1,256.0 million, compared to $1,350.0 million for the same period of the prior year.

On October 4, 2013, the Company declared a cash dividend on its common stock of $0.31625 per share for the quarter ended September 30, 2013. The cash dividend was paid on October 31, 2013 to all shareholders of record on October 16, 2013.

"We have made significant progress towards resolving the production issues on the Voyageur Spirit and Foinaven FPSO units since releasing last quarter's earnings in August 2013," commented Peter Evensen, Teekay Corporation's President and Chief Executive Officer. "The Voyageur Spirit FPSO achieved full production capacity and has been on full rate since August 27th, and is now awaiting formal certification of final acceptance by the charterer. The Foinaven FPSO, which was shut down in the third quarter of 2013 for repairs to its compressors, is currently producing approximately 35,000 barrels of oil per day and is expected to reach full production capacity during the latter part of the fourth quarter of 2013."

"With the recent accretive acquisitions and newbuilding deliveries added to our two master limited partnerships, the cash flows to be received by Teekay Corporation through its general partnership interests are expected to increase as both Teekay Offshore Partners and Teekay LNG Partners intend to increase their limited partner cash distributions by 2.5 percent, commencing with the fourth quarter distributions payable in February 2014," Mr. Evensen continued. "With both of Teekay's general partnership interests now in the 50 percent incentive distribution tier, these distribution increases would result in approximately $12.3 million of incremental cash flows to Teekay Parent per annum."

Mr. Evensen added, "Looking ahead, we expect the strong fundamentals underlying our offshore and gas businesses will continue to generate new growth opportunities. Over the past 12 months, there has been a notable step-up in the amount of tendering activity for new projects which, in addition to the existing visible growth in our offshore and gas businesses, we believe are positive towards growing our free cash flows."

  1. Adjusted net 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 for information about specific items affecting net loss that are typically excluded by securities analysts in their published estimates of the Company's financial results.
  2. Net revenues is a non-GAAP financial measure used by certain investors to measure the financial performance of shipping companies. Please see Appendix E to this release for a reconciliation of this non-GAAP measure as used in this release to the most directly comparable financial measure under GAAP.

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) (TOO), Teekay LNG Partners L.P. (Teekay LNG) (TGP), Teekay Tankers Ltd. (Teekay Tankers) (TNK) and Teekay Parent (which excludes the results attributed to Teekay Offshore, Teekay LNG and Teekay Tankers). A brief description of each entity and an analysis of its respective financial results follow the tables below. Please also refer to the "Fleet List" section below and Appendix B to this release for further details.

Three Months Ended September 30, 2013
(unaudited)
(in thousands of U.S. dollars) Teekay Offshore Partners LP Teekay LNG Partners LP Teekay Tankers Ltd. Teekay Parent Consolidation Adjustments Teekay Corporation Consolidated
Net revenues(1) 207,347 100,319 38,996 104,142 (24,031 ) 426,773
Vessel operating expense 89,788 24,655 21,859 81,277 - 217,579
Time-charter hire expense 14,142 - 1,216 33,389 (23,261 ) 25,486
Depreciation and amortization 51,920 24,440 11,935 20,819 - 109,114
CFVO - Consolidated (2)(3)(4) 87,469 73,291 12,604 (34,531 ) - 138,833
CFVO - Equity Investments(5) 4,852 51,870 1,416 (1,771 ) - 56,367
CFVO - Total 92,321 125,161 14,020 (36,302 ) - 195,200
Three Months Ended September 30, 2012
(unaudited)
(in thousands of U.S. dollars) Teekay Offshore Partners LP Teekay LNG Partners LP Teekay Tankers Ltd. Teekay Parent Consolidation Adjustments Teekay Corporation Consolidated
Net revenues(1) 203,731 97,863 43,912 132,459 (37,997 ) 439,968
Vessel operating expense 80,384 24,202 24,921 74,157 - 203,664
Time-charter hire expense 14,910 - 804 49,014 (37,342 ) 27,386
Depreciation and amortization 47,768 24,570 17,896 22,522 - 112,756
CFVO - Consolidated (2)(3)(4) 95,528 71,178 16,252 (29,170 ) - 153,788
CFVO - Equity Investments(5) - 40,550 - (2,750 ) - 37,800
CFVO - Total 95,528 111,728 16,252 (31,920 ) - 191,588
  1. Net voyage revenues represents voyage revenues less voyage expenses, which comprise all expenses relating to certain voyages, including bunker fuel expenses, port fees, canal tolls and brokerage commissions. Net voyage revenues is a non-GAAP financial measure used by certain investors to measure the financial performance of shipping companies. Please see Appendix E for a reconciliation of this non-GAAP measure as used in this release to the most directly comparable GAAP financial measure.
  2. Cash flow from vessel operations (CFVO) represents income from vessel operations before depreciation and amortization expense, amortization of in-process revenue contracts, vessel write downs, gains and losses on the sale of vessels, adjustments for direct financing leases to a cash basis, and unrealized gains and losses relating to derivatives, but includes realized gains and losses on the settlement of foreign currency forward contracts. CFVO - Consolidated represents CFVO from vessels that are consolidated on the Company's financial statements. Cash flow from vessel operations is a non-GAAP financial measure used by certain investors to measure the financial performance of shipping companies. Please refer to Appendix C and Appendix E of this release for a reconciliation of this non-GAAP measure as used in this release to the most directly comparable GAAP financial measure.
  3. Excludes CFVO 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. In addition to CFVO from directly owned vessels, Teekay Parent also receives cash dividends and distributions from its daughter public companies. For the three months ended September 30, 2013 and 2012, Teekay Parent received dividends and distributions from Teekay LNG, Teekay Offshore and Teekay Tankers totaling $40.1 million and $38.0 million, respectively. The dividends and distributions received by Teekay Parent include, among others, those made with respect to its general partner interests in Teekay Offshore and Teekay LNG. Please refer to Appendix D to this release for further details.
  5. CFVO - Equity Investments represents the Company's proportionate share of CFVO from its equity-accounted vessels and other investments. Please refer to Appendix E of this release for a reconciliation of this non-GAAP measure as used in this release to the most directly comparable GAAP financial measure.

Teekay Offshore Partners L.P.

Teekay Offshore is an international provider of marine transportation, oil production and storage services to the offshore oil industry through its fleet of 36 shuttle tankers (including four chartered-in vessels and one newbuilding under construction), five floating, production, storage and offloading (FPSO) units, six floating storage and offtake (FSO) units (including one FSO unit under conversion), four conventional oil tankers and one HiLoad Dynamic Positioning (DP) unit, in which its interests range from 50 to 100 percent. Teekay Offshore also has the right to participate in certain other FPSO and vessel opportunities. Teekay Parent currently owns a 29.9 percent interest in Teekay Offshore (including the 2 percent sole general partner interest).

For the third quarter of 2013, Teekay Offshore's quarterly distribution was $0.5253 per common unit. The cash distribution to be received by Teekay Parent based on its common unit ownership and general partnership interest in Teekay Offshore totaled $16.2 million for the third quarter of 2013, as detailed in Appendix D to this release.

Cash flow from vessel operations from Teekay Offshore decreased to $92.3 million in the third quarter of 2013, from $95.5 million in the same period of the prior year. The decrease was primarily due to lower shuttle tanker project revenues, the lay-up of the Navion Clipper upon expiration of its time-charter contract during the fourth quarter of 2012, the sale of the Navion Savonita in the fourth quarter of 2012, the sale of five conventional tankers during the 12 months ended September 30, 2013 and higher maintenance costs on the FPSO units. These decreases were partially offset by the acquisition from Teekay Corporation of the Voyageur Spirit FPSO and a 50 percent interest in the Cidade de Itajai FPSO in the second quarter of 2013, the commencement of the time-charter contracts for the first two newbuilding shuttle tankers with the BG Group plc in June and August 2013 and the Navion Saga dry-docking during the third quarter of 2012.

On August 27, 2013, repairs to the defective gas compressor on the Voyageur Spirit FPSO were completed and the unit achieved full production capacity. Since that time, the unit has been receiving full rate from the charterer. Teekay Offshore expects to receive a certificate of final acceptance from the charterer after completing certain operational tests, which have been temporarily delayed by the charterer due to an unrelated issue which is the responsibility of the charterer. In the meantime, Teekay Offshore will continue to earn the full rate as though the unit was producing at full capacity under the charter contract.

Teekay Corporation has agreed to indemnify Teekay Offshore for certain lost revenue relating to the full operation of the Voyageur Spirit FPSO unit. Any indemnification amounts will effectively be treated as a reduction to the purchase price of the FPSO unit and will therefore have no impact on the operating cash flows of Teekay Parent. For the period from July 1, 2013 to September 30, 2013, the indemnification to Teekay Offshore effectively resulted in a $13.0 million reduction to the Voyageur Spirit FPSO purchase price. Any future compensation received by Teekay Offshore from the charterer related to the indemnification period will reduce the amount of Teekay Parent's indemnification to Teekay Offshore. For the period up to September 30, 2013, the indemnification to Teekay Offshore effectively resulted in a reduction of approximately $30 million to the Voyageur Spirit FPSO purchase price. Teekay Offshore has been and will continue to be indemnified by Teekay Parent for lost revenues until receipt of the certificate of final acceptance from the charterer, subject to a maximum of $54 million.

Teekay LNG Partners L.P.

Teekay LNG provides liquefied natural gas (LNG), liquefied petroleum gas (LPG) and crude oil marine transportation services generally under long-term, fixed-rate charter contracts through its current fleet of 33 LNG carriers (including five newbuildings under construction), 28 LPG carriers (including 12 newbuildings under construction) and 11 conventional tankers. Teekay LNG's interests in these vessels range from 33 to 100 percent. In addition, Teekay LNG, through its 50 percent owned LPG joint venture with Exmar NV, charters-in five LPG carriers. Teekay Parent currently owns a 35.3 percent interest in Teekay LNG (including the 2 percent sole general partner interest).

For the third quarter of 2013, Teekay LNG's quarterly distribution was $0.675 per common unit. The cash distribution to be received by Teekay Parent based on its common unit ownership and general partnership interest in Teekay LNG totaled $23.3 million for the third quarter of 2013, as detailed in Appendix D to this release.

Including cash flows from equity-accounted vessels, Teekay LNG's total cash flow from vessel operations increased to $125.2 million in the third quarter of 2013, from $111.7 million in the same period of the prior year. The increase was primarily due to the February 2013 acquisition of a 50 percent interest in Exmar LPG BVBA, Teekay LNG's LPG joint venture with Exmar NV, the acquisition of an LNG carrier newbuilding from Awilco LNG ASA (Awilco) in September 2013 and revenues relating to certain operating and drydocking expense recoveries. These increases were partially offset by the effect of amendments to two of Teekay LNG's Suezmax tanker charter contracts, which temporarily reduced the daily hire rate for the related vessel from October 2012 until September 2014.

In July 2013, Teekay LNG exercised a portion of its existing options with Daewoo Shipbuilding & Marine Engineering Co., Ltd., (DSME) of South Korea for two additional 173,400 cubic meter (cbm) LNG carrier newbuildings. These newbuilding vessels will be equipped with the M-type, Electronically Controlled, Gas Injection (MEGI) twin engines, which are expected to be significantly more fuel-efficient and have lower emission levels than other engines currently being utilized in LNG shipping. Teekay LNG intends to secure long-term contract employment for both vessels prior to their deliveries in 2016. In connection with the exercise of these two newbuilding options, Teekay LNG secured additional options with DSME for up to five additional LNG carrier newbuildings.

In addition, in July and October 2013, Exmar LPG BVBA exercised its options to order a total of four additional Midsize Gas Carrier (MGC) newbuildings, which will be constructed by Hanjin Heavy Industries and Construction Co., Ltd. and are scheduled for delivery in 2017 and 2018.

In August 2013, Teekay LNG agreed to acquire a 155,900 cbm LNG carrier newbuilding from Awilco. The vessel was delivered to Teekay LNG in mid-September 2013, at which time Awilco bareboat-chartered the vessel on a five-year fixed-rate charter contract (plus a one-year extension option) with a fixed-price purchase obligation at the end of the initial term (and option period). The vessel purchase price was $205 million less a $50 million upfront prepayment of charter hire by Awilco, which is in addition to the daily bareboat charter rate.

In September 2013, Teekay LNG agreed to acquire a second 155,900 cbm LNG carrier newbuilding from Awilco on similar terms as the first vessel, except that the period of its bareboat charter-back to Awilco will be a firm period of four years (plus a one-year extension option) and the vessel will have different fixed purchase obligations at the end of the initial term (and option period). This second vessel is currently under construction by DSME of South Korea and Teekay LNG expects to take delivery in late-2013.

In October 2013, Teekay LNG completed a public equity offering of 3.5 million common units (including 0.5 million units issued upon exercise of the underwriters' overallotment option), raising net proceeds of $145 million (including the general partners' contribution). Net proceeds will be used to partially finance the second LNG carrier newbuilding from Awilco and for general corporate purposes, which may include funding installment payments on future newbuilding deliveries and future vessel acquisitions.

Teekay Tankers Ltd.

Teekay Tankers currently owns a fleet of 28 vessels, including 11 Aframax tankers, 10 Suezmax tankers, three Long Range 2 (LR2) product tankers, three Medium-Range (MR) product tankers, and a 50 percent interest in a Very Large Crude Carrier (VLCC). In addition, Teekay Tankers currently time-charters in one Aframax tanker and has invested $115 million in first-priority mortgage loans, secured by two 2010-built VLCCs. Of the 28 vessels currently in operation, 13 are employed on fixed-rate time-charters, generally ranging from one to three years in initial duration, with the remaining vessels trading in spot tanker pools. Based on its current ownership of Teekay Tankers Class A common stock and its ownership of 100 percent of the outstanding Class B stock, Teekay Parent currently owns a 25.1 percent economic interest in and has voting control of Teekay Tankers.

On October 4, 2013, Teekay Tankers declared a fixed third quarter 2013 dividend of $0.03 per share, which was paid on October 25, 2013 to all shareholders of record on October 16, 2013. Based on its ownership of Teekay Tankers Class A and Class B shares, the dividend paid to Teekay Parent totaled $0.6 million for the third quarter of 2013.

Cash flow from vessel operations from Teekay Tankers decreased to $14.0 million in the third quarter of 2013, from $16.3 million in the same period of the prior year. The decrease was primarily due the change in employment of certain of Teekay Tankers' vessels from fixed rates to lower spot rates on expiry of their fixed-rate charters, lower average realized spot tanker rates from its spot Suezmax and LR2 vessels and a reduction in interest income earned from Teekay Tankers' $115 million investment in two mortgage loans, partially offset by a decrease in depreciation expense as a result of vessel impairments recorded in the fourth quarter of 2012 and higher average realized spot tanker rates from its spot Aframax vessels.

In October 2013, Teekay Tankers exercised options with STX Offshore & Shipbuilding Co., Ltd. (STX) of South Korea to order four fuel-efficient 113,000 dead-weight tonne LR2 product tankers, in addition to the four tankers it ordered from STX in April 2013. The payment of the first shipyard installments on these recent four additional vessels by Teekay Tankers to STX is contingent on the Company receiving acceptable refund guarantees from the shipyard for vessel installment payments. To date, Teekay Tankers has not made any installment payments to the yard for any of the eight LR2 product tanker newbuildings ordered in April and October 2013. Prior to receiving the refund guarantees, Teekay Tankers has the right to cancel the newbuilding orders at its discretion. STX has been unable to secure the refund guarantees; therefore, Teekay Tankers is evaluating its alternatives, including legal action for damages.

In July 2010, Teekay Tankers invested $115 million in two loans maturing in July 2013, secured by first priority mortgages registered on two 2010-built VLCC newbuildings. The borrowers have been in default on their interest payment obligations since the first quarter of 2013 and their loan principal repayment since July 2013. Teekay Tankers continues to have discussions with the borrowers and the second priority mortgagees of the vessels to realize on its security for the loans.

Teekay Parent

In addition to its equity ownership interests in Teekay Offshore, Teekay LNG and Teekay Tankers, Teekay Parent directly owns several vessels, including four conventional Suezmax tankers and four FPSO units. In addition, Teekay Parent currently owns one newbuilding FPSO unit under construction. As at November 1, 2013, Teekay Parent also had eight chartered-in conventional tankers (including two Aframax tankers owned by Teekay Offshore), two chartered-in LNG carriers owned by Teekay LNG, and two chartered-in shuttle tankers and two chartered-in FSOs owned by Teekay Offshore.

For the third quarter of 2013, Teekay Parent generated negative cash flow from vessel operations of $36.3 million, compared to negative cash flow from vessel operations of $31.9 million in the same period of the prior year. The decrease in cash flow is due to the completion of the Petrojarl I FPSO time-charter in April 2013 and lower production on the Foinaven FPSO, partially offset by lower time-charter hire expense as a result of the redelivery of time-chartered in vessels over the course of the past 12 months ended September 30, 2013.

In mid-July 2013, Teekay Parent and the charterer agreed to stop production to repair the Foinaven FPSO's gas compressor trains and the subsea system, which is the responsibility of the charterer. In late August 2013, one of the Foinaven FPSO's two compressor trains was repaired and the unit is currently producing approximately 35,000 barrels of oil per day. The second compressor train is expected to be repaired during the fourth quarter of 2013, at which point the Foinaven FPSO is expected to be capable of reaching target production of approximately 43,000 barrels of oil per day.

In September 2013, the Company entered into an agreement with Centrica Energy, the charterer of the Hummingbird Spirit FPSO, to extend the firm period of the contract for this FPSO unit until December 31, 2014, with charterer's options to extend out to March 31, 2016. In addition, Centrica Energy has an option, exercisable by December 31, 2013, to extend the firm period of the contract by a further 12 months. The Hummingbird Spirit FPSO is currently operating on the Chestnut field in the North Sea.

Fleet List

The following table summarizes Teekay's consolidated fleet of 173 vessels as at November 1, 2013, including chartered-in vessels and vessels under construction but excluding vessels managed for third parties:

Number of Vessels(1)


Owned
Vessels
Chartered-in
Vessels
Newbuildings /
Conversions

Total
Teekay Parent Fleet(2)(3)
Aframax Tankers (4) - 5 - 5
Suezmax Tankers 4 - - 4
MR Product Tanker - 1 - 1
FPSO Units 4 - 1 5
Total Teekay Parent Fleet 8 6 1 15
Teekay Offshore Fleet 45 4 3 52
Teekay LNG Fleet 55 5 17 77
Teekay Tankers Fleet 28 1 - 29
Total Teekay Consolidated Fleet 136 16 21 173
  1. Ownership interests in these vessels range from 33 percent to 100 percent.
  2. Excludes two LNG carriers chartered-in from Teekay LNG.
  3. Excludes two shuttle tankers and two FSO units chartered-in from Teekay Offshore.
  4. Excludes two Aframax tankers chartered-in from Teekay Offshore.

Liquidity

As at September 30, 2013, the Company had consolidated liquidity of $1.2 billion (consisting of $618.4 million cash and cash equivalents and $624.9 million of undrawn revolving credit facilities), of which $337.2 million of liquidity (consisting of $212.2 million cash and cash equivalents and $125.0 million of undrawn revolving credit facilities) is attributable to Teekay Parent. Including the $145 million of proceeds from Teekay LNG's common unit follow-on equity offering completed in early October 2013, Teekay had pro forma total consolidated liquidity of approximately $1.4 billion as at September 30, 2013.

Conference Call

The Company plans to host a conference call on Thursday, November 7, 2013 at 11:00 a.m. (ET) to discuss its results for the third quarter of 2013. An accompanying investor presentation will be available on Teekay's website at www.teekay.com prior to the start of the call. All shareholders and interested parties are invited to listen to the live conference call by choosing from the following options:

  • By dialing (800) 820-0231 or (416) 640-5926, if outside North America, and quoting conference ID code 9083363.
  • By accessing the webcast, which will be available on Teekay's website at www.teekay.com (the archive will remain on the website for a period of 30 days).

The conference call will be recorded and available until Thursday, November 14, 2013. This recording can be accessed following the live call by dialing (888) 203-1112 or (647) 436-0148, if outside North America, and entering access code 9083363.

About Teekay

Teekay Corporation is an operational leader and project developer in the marine midstream space. Through its general partnership interests in two master limited partnerships, Teekay LNG Partners L.P. (TGP) and Teekay Offshore Partners L.P. (TOO), its controlling ownership of Teekay Tankers Ltd. (TNK), and its fleet of directly-owned vessels, Teekay is responsible for managing and operating consolidated assets of over $11 billion, comprised of over 170 liquefied gas, offshore, and conventional tanker assets. With offices in 15 countries and approximately 6,400 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the world's leading oil and gas companies, and its 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 (LOSS) INCOME
(in thousands of U.S. dollars, except share and per share data)
Three Months Ended Nine Months Ended
September
30,
June
30,
September
30,
September
30,
September
30,
2013 2013 2012 2013 2012
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
REVENUES(1)(2)(3) 454,795 430,707 469,642 1,336,539 1,457,529
OPERATING EXPENSES
Voyage expenses (2) 28,022 26,154 29,674 80,491 107,487
Vessel operating expenses (1)(2)(3) 217,579 195,978 203,664 601,021 583,191
Time-charter hire expense 25,486 26,544 27,386 79,482 102,856
Depreciation and amortization 109,114 109,769 112,756 321,377 342,438
General and administrative (2)(3) 31,932 35,395 34,652 106,598 109,244
Asset impairments and provisions (4) 72,846 7,042 8,852 83,053 9,900
(Gain) loss on sale of vessels and equipment (726 ) (1,341 ) 341 (2,035 ) 2,365
Restructuring charges 461 1,789 3,919 4,304 5,444
484,714 401,330 421,244 1,274,291 1,262,925
(Loss) income from vessel operations (29,919 ) 29,377 48,398 62,248 194,604
OTHER ITEMS
Interest expense (2) (45,817 ) (44,687 ) (41,652 ) (133,014 ) (126,659 )
Interest income (2) 1,543 2,018 674 4,579 4,365
Realized and unrealized (loss) gain on derivative instruments (2) (26,707 ) 56,035 (35,149 ) 15,539 (124,932 )
Equity income (5) 26,753 47,372 30,179 101,440 53,114
Income tax recovery (expense) 662 (1,873 ) (4,039 ) (3,711 ) 1,378
Foreign exchange (loss) gain (11,837 ) 678 (8,504 ) (8,970 ) (6,493 )
Other income (loss) - net 625 (1,386 ) (376 ) 4,481 2,056
Net (loss) income (84,697 ) 87,534 (10,469 ) 42,592 (2,567 )
Less: Net loss (income) attributable to non-controlling interests 35,593 (76,167 ) (9,792 ) (86,465 ) (63,902 )
Net (loss) income attributable to stockholders of Teekay Corporation (49,104 ) 11,367 (20,261 ) (43,873 ) (66,469 )
(Loss) earnings per common share of Teekay
- Basic $ (0.69 ) $ 0.16 $ (0.29 ) $ (0.62 ) $ (0.96 )
- Diluted $ (0.69 ) $ 0.16 $ (0.29 ) $ (0.62 ) $ (0.96 )
Weighted-average number of common shares outstanding
- Basic 70,755,282 70,393,531 69,372,220 70,348,872 69,153,966
- Diluted 70,755,282 71,314,629 69,372,220 70,348,872 69,153,966
  1. The costs of business development and engineering studies relating to North Sea FPSO and FSO projects that the Company is pursuing are substantially reimbursable from customers upon completion. As a result, $17.5 million of revenues and $20.1 million of costs were recognized in the three months ended September 30, 2013 upon completion of two North Sea FPSO studies, and $20.3 million of revenues and $22.7 million of costs were recognized in the nine months ended September 30, 2013, upon completion of three North Sea FPSO studies.
  1. Realized and unrealized gains (losses) related to derivative instruments that are not designated as hedges for accounting purposes are included as a separate line item in the statements of (loss) income. The realized (losses) gains 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 Nine Months Ended
September
30,
June
30,
September
30,
September
30,
September
30,
2013 2013 2012 2013 2012
Realized (losses) gains relating to:
Interest rate swaps (30,254 ) (30,899 ) (30,027 ) (91,472 ) (90,112 )
Termination of interest rate swap agreements (31,798 ) (4,187 ) - (35,985 ) -
Foreign currency forward contracts 152 (1,873 ) (876 ) (1,333 ) 508
Foinaven embedded derivative - - - - 11,452
(61,900 ) (36,959 ) (30,903 ) (128,790 ) (78,152 )
Unrealized gains (losses) relating to:
Interest rate swaps 32,542 96,912 (8,036 ) 148,657 (49,326 )
Foreign currency forward contracts 2,651 (3,918 ) 3,790 (4,328 ) 5,931
Foinaven embedded derivative - - - - (3,385 )
35,193 92,994 (4,246 ) 144,329 (46,780 )
Total realized and unrealized (losses) gains on non-designated derivative instruments (26,707 ) 56,035 (35,149 ) 15,539 (124,932 )
  1. To more closely align the Company's presentation to many of its peers, the cost of ship management activities related to the Company's fleet and to services provided to third parties of $22.6 million and $61.2 million for the three and nine months ended September 30, 2013, respectively, and $19.1 million for the three months ended June 30, 2013, have been presented in vessel operating expenses. Revenues from ship management activities provided to third parties of $4.8 million and $18.7 million for the three and nine months ended September 30, 2013, respectively, and $7.3 million for the three months ended June 30, 2013, have been presented in revenues. Prior to 2013, the Company included these amounts in general and administrative expenses. All such costs incurred in comparative periods have been reclassified from general and administrative expenses to vessel operating expenses and revenues to conform to the presentation adopted in the current period. The amounts reclassified from general and administrative expenses to vessel operating expenses were $21.1 million and $61.1 million for the three and nine months ended September 30, 2012, respectively. The amounts reclassified from general and administrative expenses to revenues were $6.1 million and $16.5 million for the three and nine months ended September 30, 2012, respectively.
  1. The Company recognized asset impairments and provisions of $72.8 million and $83.1 million for the three and nine months ended September 30, 2013, respectively, related to impairment charges on four shuttle tankers, including two shuttle tankers which Teekay Offshore owns through a 50 percent-owned subsidiary, and loss provisions for investment in term loans and advances to a joint venture partner's parent entity. The shuttle tanker impairments were the result of the re-contracting of two of the vessels at lower rates than expected during the third quarter of 2013, the cancellation of a short-term contract which occurred in September 2013 and a change in expectations for a contract renewal for one of the shuttle tankers currently operating in Brazil. Asset impairments and provisions for the three and nine months ended September 30, 2012 relate to shuttle tanker impairment charges of $8.9 million and $9.9 million, respectively.
  1. The Company's proportionate share of items within equity income as identified in Appendix A of this release, is as detailed in the table below. By excluding these items from equity income, the resulting adjusted equity income is a normalized amount that can be used to evaluate the financial performance of the Company's equity accounted investments.
Three Months Ended Nine Months Ended
September
30,
June
30,
September
30,
September
30,
September
30,
2013 2013 2012 2013 2012
Equity income 26,753 47,372 30,179 101,440 53,114
Gain on sale of equity investment - - (10,830 ) - (10,830 )
Proportionate share of unrealized (gains) losses on derivative instruments (1,707 ) (17,176 ) 1,896 (24,256 ) 5,404
Other(i) 4,100 - 269 4,100 826
Equity income adjusted for items in Appendix A 29,146 30,196 21,514 81,284 48,514
  1. Includes restructuring accruals and loan loss provision in Sevan Marine ASA.
TEEKAY CORPORATION
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars)
As at
September 30,
As at
June 30,
As at
December 31,
2013 2013 2012
(unaudited) (unaudited) (unaudited)
ASSETS
Cash and cash equivalents 618,416 540,206 639,491
Other current assets 635,240 626,499 692,389
Restricted cash - current 6,170 37,357 39,390
Restricted cash - long-term 497,021 495,714 494,429
Vessels held for sale - 6,800 22,364
Vessels and equipment 6,805,137 6,742,642 6,628,383
Advances on newbuilding contracts 731,001 706,965 692,675
Derivative assets 107,914 119,989 180,250
Investment in equity accounted investees 644,329 621,484 480,043
Investment in term loans 180,987 188,895 185,934
Investment in direct financing leases 579,655 430,414 436,601
Other assets 319,552 317,450 217,401
Intangible assets 112,081 116,633 126,136
Goodwill 166,539 166,539 166,539
Total Assets 11,404,042 11,117,587 11,002,025
LIABILITIES AND EQUITY
Accounts payable and accrued liabilities 550,294 532,003 478,756
Current portion of long-term debt 1,033,712 1,103,248 867,683
Long-term debt 5,815,559 5,272,585 5,099,246
Long-term debt - variable interest entity(1) - - 230,359
Derivative liabilities 484,461 529,558 644,021
In process revenue contracts 194,033 208,266 241,591
Other long-term liabilities 195,971 209,479 220,080
Redeemable non-controlling interest 24,413 28,357 28,815
Equity:
Non-controlling interests 1,911,380 1,982,676 1,876,085
Stockholders of Teekay 1,194,219 1,251,415 1,315,389
Total Liabilities and Equity 11,404,042 11,117,587 11,002,025
  1. For accounting purposes, the Voyageur Spirit FPSO unit was a variable interest entity (VIE) until May 2, 2013, whereby Teekay was the primary beneficiary. As a result, the Company consolidated the VIE as of December 1, 2011, even though the Company did not acquire the Voyageur Spirit FPSO unit until May 2, 2013, on which date the Company sold the Voyageur Spirit FPSO unit to Teekay Offshore.
TEEKAY CORPORATION
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
Nine Months Ended
September 30
2013 2012
(unaudited) (unaudited)
Cash and cash equivalents provided by (used for)
OPERATING ACTIVITIES
Net operating cash flow 95,027 262,545
FINANCING ACTIVITIES
Net proceeds from long-term debt 1,718,226 1,026,906
Scheduled repayments of long-term debt (219,264 ) (212,877 )
Prepayments of long-term debt (823,170 ) (1,055,135 )
Decrease (increase) in restricted cash 31,042 (31,421 )
Net proceeds from public offerings of Teekay LNG 44,779 178,431
Net proceeds from public offerings of Teekay Offshore 207,582 252,051
Net proceeds from public offerings of Teekay Tankers - 65,854
Equity contribution from joint venture partner 1,684 70,750
Cash dividends paid (67,762 ) (61,312 )
Distribution from subsidiaries to non-controlling interests (196,316 ) (182,647 )
Other 19,541 7,857
Net financing cash flow 716,342 58,457
INVESTING ACTIVITIES
Expenditures for vessels and equipment (553,630 ) (413,970 )
Proceeds from sale of vessels and equipment 47,704 226,201
Proceeds from sale of marketable securities - 1,063
Advances to joint ventures and joint venture partners (40,160 ) (94,097 )
Investment in joint ventures (140,804 ) (163,482 )
Investment in direct financing lease assets (151,716 ) -
Direct financing lease payments received and other 6,162 18,057
Net investing cash flow (832,444 ) (426,228 )
Decrease in cash and cash equivalents (21,075 ) (105,226 )
Cash and cash equivalents, beginning of the period 639,491 692,127
Cash and cash equivalents, end of the period 618,416 586,901
TEEKAY CORPORATION
APPENDIX A - SPECIFIC ITEMS AFFECTING NET (LOSS) 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 attributable to stockholders of Teekay, a non-GAAP financial measure, to net (loss) income attributable to stockholders of Teekay as determined in accordance with GAAP. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use this information to evaluate the Company's financial performance. The items below are also typically excluded by securities analysts in their published estimates of the Company's financial results. Adjusted net loss attributable to the stockholders of Teekay is intended to provide additional information and should not be considered a substitute for measures of performance prepared in accordance with GAAP.

Three Months Ended Nine Months Ended
September 30, 2013 September 30, 2013
(unaudited) (unaudited)
$ Per $ Per
$ Share(1) $ Share(1)
Net (loss) income - GAAP basis (84,697 ) 42,592
Adjust for: Net loss (income) attributable to non-controlling interests 35,593 (86,465 )
Net loss attributable to stockholders of Teekay (49,104 ) (0.69 ) (43,873 ) (0.62 )
Add (subtract) specific items affecting net income:
Unrealized gains from derivative instruments (2) (36,881 ) (0.52 ) (163,946 ) (2.33 )
Foreign exchange loss (3) 12,199 0.17 12,085 0.17
Restructuring charges (4) 461 0.01 4,304 0.06
Asset impairments and provisions (5) 72,846 1.02 83,053 1.18
Net gain on sale of vessels and equipment (6) (726 ) (0.01 ) (2,035 ) (0.03 )
Realized loss on termination of interest rate swap 31,798 0.45 31,798 0.45
Other (7) 2,968 0.04 10,270 0.15
Non-controlling interests' share of items above (8) (69,575 ) (0.98 ) (12,677 ) (0.18 )
Total adjustments 13,090 0.18 (37,148 ) (0.53 )
Adjusted net loss attributable to stockholders of Teekay (36,014 ) (0.51 ) (81,021 ) (1.15 )
  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 from joint ventures, and the ineffective portion of foreign currency forward contracts designated as hedges for accounting purposes.
  3. Foreign currency exchange gains and losses primarily relate to the Company's debt denominated in Euros and Norwegian Kroner in addition to the unrealized gains and losses on cross currency swaps used to hedge the principal and interest on the Norwegian Kroner bonds. Nearly all of the Company's foreign currency exchange gains and losses are unrealized.
  4. Restructuring charges primarily relate to the reorganization of the Company's marine operations.
  5. Relates to allowances provided against investments in term loans, impairment of four shuttle tankers, including two shuttle tankers which Teekay Offshore owns through a 50 percent-owned subsidiary, and a loan loss provision on a loan to a joint venture partner.
  6. Relates to gain on sale of equipment and gain/loss on sale of three conventional tankers.
  7. Other primarily relates to recognition of unrealized loss on marketable securities, pension fund closure, and realized (gain) loss on foreign exchange forward contracts relating to certain capital acquisition expenditures and certain items in joint ventures.
  8. Items affecting net (loss) income include items from the Company's wholly-owned subsidiaries, its consolidated non-wholly-owned subsidiaries and its proportionate share of items from equity accounted for investments. The specific items affecting net (loss) 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 arrive at 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.
TEEKAY CORPORATION
APPENDIX A - SPECIFIC ITEMS AFFECTING NET LOSS
(in thousands of U.S. dollars, except per share data)

Set forth below is a reconciliation of the Company's unaudited adjusted net loss attributable to stockholders of Teekay, a non-GAAP financial measure, to net loss attributable to stockholders of Teekay as determined in accordance with GAAP. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors use this information to evaluate the Company's financial performance. The items below are also typically excluded by securities analysts in their published estimates of the Company's financial results. Adjusted net loss attributable to the stockholders of Teekay is intended to provide additional information and should not be considered a substitute for measures of performance prepared in accordance with GAAP.

Three Months Ended Nine Months Ended
September 30, 2012 September 30, 2012
(unaudited) (unaudited)
$ Per $ Per
$ Share(1) $ Share(1)
Net loss - GAAP basis (10,469 ) (2,567 )
Adjust for: Net income attributable to non-controlling interests (9,792 ) (63,902 )
Net loss attributable to stockholders of Teekay (20,261 ) (0.29 ) (66,469 ) (0.96 )
Add (subtract) specific items affecting net loss:
Unrealized losses from derivative instruments (2) 6,310 0.10 52,677 0.76
Foreign currency exchange losses (3) 7,825 0.11 4,089 0.06
Asset impairments(4) 8,852 0.13 9,900 0.14
Restructuring charges(5) 3,919 0.06 5,444 0.08
Loss on sale of vessels and equipment(6) 341 - 2,365 0.04
Gain on sale of equity investment(7) (10,830 ) (0.16 ) (10,830 ) (0.16 )
Realized gain upon settlement of embedded derivative - - (11,452 ) (0.17 )
Non-recurring adjustments to tax accruals - - (8,006 ) (0.12 )
Other - net(8) 269 - (221 ) -
Non-controlling interests' share of items above (16,394 ) (0.24 ) (35,300 ) (0.51 )
Total adjustments 292 - 8,666 0.12
Adjusted net loss attributable to stockholders of Teekay (19,969 ) (0.29 ) (57,803 ) (0.84 )
  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 from joint ventures, and the ineffective portion of foreign currency forward contracts designated as hedges for accounting purposes.
  3. Foreign currency exchange gains and losses primarily relate to the Company's debt denominated in Euros and Norwegian Kroner in addition to the unrealized gains and losses on cross currency swaps used to hedge the principal and interest on the Norwegian Kroner bonds. Nearly all of the Company's foreign currency exchange gains and losses are unrealized.
  4. Relates to the impairment of one of the Company's older shuttle tankers.
  5. Restructuring charges relate to the reorganization of the Company's marine operations.
  6. Relates to disposal of one of the Company's older shuttle tankers.
  7. Relates to the sale of the Company's 40 percent interest in an FPSO unit.
  8. Other includes transaction and acquisition related costs associated with the sale of 13 conventional tankers from Teekay Parent to Teekay Tankers in June 2012 and the Teekay LNG acquisition of a 52 percent interest in six LNG carriers from A.P. Moller-Maersk in February 2012.
TEEKAY CORPORATION
APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY BALANCE SHEET AS AT SEPTEMBER 30, 2013
(in thousands of U.S. dollars)
(unaudited)
Teekay Teekay Teekay Teekay Consolidation
Offshore LNG Tankers Parent Adjustments Total
ASSETS
Cash and cash equivalents 258,900 118,131 29,168 212,217 - 618,416
Other current assets 199,980 27,589 28,825 378,846 - 635,240
Restricted cash - 499,347 - 3,844 - 503,191
Vessels and equipment 3,007,747 1,867,614 861,377 1,068,399 - 6,805,137
Advances on newbuilding contracts 47,562 77,854 - 605,585 - 731,001
Derivative assets 8,793 98,888 - 233 - 107,914
Investment in equity accounted investees 34,132 564,890 7,802 47,205 (9,700 ) 644,329
Investment in direct financing leases 28,944 550,711 - - - 579,655
Investment in term loans - - 114,096 66,891 - 180,987
Other assets 78,367 125,125 14,994 101,066 - 319,552
Advances to affiliates 12,772 3,798 26,791 (43,361 ) - -
Equity investment in subsidiaries - - - 426,000 (426,000 ) -
Intangibles and goodwill 138,807 135,400 - 4,413 - 278,620
TOTAL ASSETS 3,816,004 4,069,347 1,083,053 2,871,338 (435,700 ) 11,404,042
LIABILITIES AND EQUITY
Accounts payable and accrued liabilities 191,984 49,419 20,773 288,118 - 550,294
Advances from affiliates 122,605 16,870 11,430 (150,905 ) - -
Current portion of long-term debt 437,355 245,745 25,246 325,366 - 1,033,712
Long-term debt 1,950,193 2,117,923 720,921 1,026,522 - 5,815,559
Derivative liabilities 187,733 226,285 26,755 43,688 - 484,461
In-process revenue contracts 104,506 5,051 - 84,476 - 194,033
Other long-term liabilities 28,163 105,059 5,256 57,493 - 195,971
Redeemable non-controlling interest 24,413 - - - - 24,413
Equity:
Non-controlling interests (1) 32,415 49,999 - 2,361 1,826,605 1,911,380
Equity attributable to stockholders/ unitholders of publicly-listed entities 736,637 1,252,996 272,672 1,194,219 (2,262,305 ) 1,194,219
TOTAL LIABILITIES AND EQUITY 3,816,004 4,069,347 1,083,053 2,871,338 (435,700 ) 11,404,042
NET DEBT(2) 2,128,648 1,746,190 716,999 1,135,827 - 5,727,664
  1. Non-controlling interests in the Teekay Offshore and Teekay LNG columns represent the respective joint venture partners' share of 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.
  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 STATEMENT OF (LOSS) INCOME FOR THE THREE MONTHS ENDED
SEPTEMBER 30, 2013
(in thousands of U.S. dollars)
(unaudited)
Teekay Teekay Teekay Teekay Consolidation
Offshore LNG Tankers Parent Adjustments Total
Revenues 236,040 100,692 39,479 103,988 (25,404 ) 454,795
Voyage expenses 28,693 373 483 (154 ) (1,373 ) 28,022
Vessel operating expenses 89,788 24,655 21,859 81,277 - 217,579
Time-charter hire expense 14,142 - 1,216 33,389 (23,261 ) 25,486
Depreciation and amortization 51,920 24,440 11,935 20,819 - 109,114
General and administrative 12,757 4,793 3,317 11,835 (770 ) 31,932
Asset impairments and provisions (1) 57,502 3,804 10,399 1,141 - 72,846
Gain on sale of vessels and equipment (565 ) - - (161 ) - (726 )
Restructuring charges 449 - - 12 - 461
Total operating expenses 254,686 58,065 49,209 148,158 (25,404 ) 484,714
(Loss) income from vessel operations (18,646 ) 42,627 (9,730 ) (44,170 ) - (29,919 )
Interest expense (16,810 ) (13,548 ) (2,440 ) (13,019 ) - (45,817 )
Interest income 467 656 71 349 - 1,543
Realized and unrealized losses on derivative instruments (7,952 ) (11,143 ) (2,492 ) (5,120 ) - (26,707 )
Income tax (expense) recovery (109 ) (791 ) (354 ) 1,916 - 662
Equity income (loss) 1,199 28,831 458 (3,735 ) - 26,753
Equity in earnings of subsidiaries (2) - - - 7,557 (7,557 ) -
Foreign exchange (loss) gain (2,730 ) (16,068 ) (80 ) 7,041 - (11,837 )
Other - net 310 306 (24 ) 33 - 625
Net (loss) income (44,271 ) 30,870 (14,591 ) (49,148 ) (7,557 ) (84,697 )
Less: Net loss (income) attributable to non-controlling interests (3) 18,483 (1,262 ) - 44 18,328 35,593
Net (loss) income attributable to stockholders/ unitholders of publicly-listed entities (25,788 ) 29,608 (14,591 ) (49,104 ) 10,771 (49,104 )
CFVO - Consolidated(4)(5) 87,469 73,291 12,604 (34,531 ) - 138,833
CFVO - Equity Investments(6) 4,852 51,870 1,416 (1,771 ) - 56,367
CFVO - Total 92,321 125,161 14,020 (36,302 ) - 195,200
  1. Teekay Offshore recognized an impairment charge of $57.5 million relating to four shuttle tankers during the three months ended September 30, 2013, including the impairment of $37.2 million of two shuttle tankers which Teekay Offshore owns through a 50 percent-owned subsidiary. The shuttle tanker impairments were the result of the re-contracting of two of the vessels at lower rates than expected during the third quarter of 2013, the cancellation of a short-term contract which occurred in September 2013 and a change in expectations for a contract renewal for one of the shuttle tankers currently operating in Brazil. The asset impairments and provisions also include recognition of loss provisions of $3.8 million by Teekay LNG relating to the advances to a joint venture partner's parent entity, $10.4 million by Teekay Tankers on investment in term loans and $1.1 million by Teekay Parent on an investment in a term loan.
  2. Teekay Corporation's proportionate share of the net earnings of its publicly-traded subsidiaries.
  3. 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 their 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.
  4. Cash flow from vessel operations (CFVO) represents income from vessel operations before depreciation and amortization expense, amortization of in-process revenue contracts, vessel write downs, gains and losses on the sale of vessels, adjustments for direct financing leases to a cash basis, and unrealized gains and losses relating to derivatives, but includes realized gains and losses on the settlement of foreign currency forward contracts. CFVO - Consolidated represents CFVO from vessels that are consolidated on the Company's financial statements. 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 Appendix C and Appendix E to this release for a reconciliation of this non-GAAP measure as used in this release to the most directly comparable GAAP financial measure.
  5. In addition to the CFVO generated by its directly owned and chartered-in assets, Teekay Parent also receives cash dividends and distributions from its publicly-traded subsidiaries. For the three months ended September 30, 2013, Teekay Parent received cash dividends and distributions from these subsidiaries totaling $40.1 million. The dividends and distributions received by Teekay Parent include, among others, those made with respect to its general partner interests in Teekay Offshore and Teekay LNG. Please refer to Appendix D to this release for further details.
  6. Cash flow from vessel operations (CFVO) - Equity Investments represents the Company's proportionate share of CFVO from its equity accounted vessels and other investments. Please see Appendix C and Appendix E to this release for a reconciliation of this non-GAAP measure as used in this release to the most directly comparable GAAP financial measure.
...
TEEKAY CORPORATION
APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY STATEMENT OF INCOME (LOSS) FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2013