Teekay Corporation
NYSE : TK

Teekay Corporation

March 04, 2010 08:31 ET

Teekay Corporation Reports Fourth Quarter and Annual Results

Highlights - Fourth quarter 2009 cash flow from vessel operations of $129.4 million, up 16 percent from the previous quarter - Fourth quarter 2009 adjusted net loss attributable to stockholders of Teekay of $33.3 million, or $0.45 per share (excluding specific items which increased net income by $49.1 million, or $0.67 per share) - Completed offering of $450 million, 8.5 percent senior unsecured notes due 2020 and repurchased $151.1 million of existing 8.875 percent senior unsecured notes due July 2011 - Current consolidated liquidity of over $2.1 billion; $2.8 billion in total consolidated liquidity including pre-arranged newbuilding financing - On March 2, 2010, Teekay Corporation agreed to sell two Suezmax tankers and one Handymax product tanker to Teekay LNG Partners

HAMILTON, BERMUDA--(Marketwire - March 4, 2010) - Teekay Corporation (Teekay or the Company) (NYSE:TK) today reported an adjusted net loss attributable to stockholders of Teekay(1) of $33.3 million, or $0.45 per share, for the quarter ended December 31, 2009, compared to adjusted net income of $53.2 million, or $0.73 per share, attributable to the stockholders of Teekay for the same period of the prior year. Adjusted net income (loss) attributable to stockholders of Teekay excludes a number of specific items which had the net effect of increasing net income by $49.1 million (or $0.67 per share) for the three months ended December 31, 2009 and decreasing net income by $704.1 million (or $9.71 per share) for the three months ended December 31, 2008, as detailed in Appendix A to this release. Including these items, the Company reported on a GAAP basis, net income attributable to the stockholders of Teekay of $15.9 million(2), or $0.22 per share, for the quarter ended December 31, 2009, compared to net loss attributable to the stockholders of Teekay of $650.9 million(2), or $8.98 per share, for the same period of the prior year. Net revenues(3) for the fourth quarter of 2009 were $448.9 million, compared to $611.6 million for the same period of the prior year.

For the year ended December 31, 2009, the Company reported an adjusted net loss attributable to stockholders of Teekay of $87.5 million, or $1.20 per share, compared to adjusted net income attributable to stockholders of Teekay of $285.3 million, or $3.94 per share, for the same period of the prior year, excluding a number of specific items which had the net effect of increasing net income by $202.0 million (or $2.77 per share) in 2009 and decreasing net income by $754.8 million or $10.42 per share in 2008, as detailed in Appendix A to this release. Including these items, the Company reported, on a GAAP basis, net income attributable to the stockholders of Teekay of $114.5 million, or $1.57 per share for the year ended December 31, 2009, compared to net loss attributable to the stockholders of Teekay of $469.4 million, or $6.48 per share, for the same period of the prior year. Net revenues for the twelve months ended December 31, 2009 were $1.9 billion compared to $2.5 billion for the prior year.

On January 5, 2010, the Company declared a cash dividend on its common stock of $0.31625 per share for the quarter ended December 31, 2009. The cash dividend was paid on January 29, 2010, to all shareholders of record on January 15, 2010.



(1) Adjusted net income (loss) attributable to stockholders of Teekay is a
non-GAAP financial measure. Please refer to Appendix A to this release
for a reconciliation of this non-GAAP measure as used in this release to
the most directly comparable financial measure under United States
generally accepted accounting principles (GAAP) and information about
specific items affecting net income which are typically excluded by
securities analysts in their published estimates of the Company's
financial results.
(2) Effective January 1, 2009, Teekay amended the accounting and reporting
for non-controlling interest, which is now classified as a component of
equity.
(3) Net revenues represents revenues less voyage expenses, which comprise
all expenses relating to certain voyages, including bunker fuel
expenses, port fees, cargo loading and unloading expenses, canal
tolls, agency fees and commissions. Net revenues is a non-GAAP
financial measure used by certain investors to measure the
financial performance of shipping companies. Please see the Company's
web site at www.teekay.com for a reconciliation of this non-GAAP
measure as used in this release to the most directly comparable
financial measure under GAAP.


Commenting on Teekay's results, Bjorn Moller, Teekay's President and Chief Executive Officer stated: "The contribution from our growing fixed-rate businesses proved particularly valuable during the second half of 2009, providing cash flow stability through one of the most volatile spot tanker markets in decades" Mr. Moller continued, "In the fourth quarter, Teekay generated over $129 million of cash flow from vessel operations, despite the spot tanker market weakness that persisted through most of the quarter. We expect 2010 will bring continued tanker market volatility; however our fixed-rate offshore, liquefied gas and conventional tanker businesses will provide Teekay with a significant base of stable cash flows while our spot-traded fleet retains the potential upside to the spot tanker market."

Mr. Moller continued, "We have made great progress in 2009 on the key priorities we communicated at our June 2009 investor meeting. Since that time, we have continued to reduce our exposure to the spot tanker market through selling and chartering-out spot-trading tankers and re-delivering in-chartered vessels. The re-delivery of spot in-chartered vessels alone has resulted in quarterly cost savings of over $85 million for the fourth quarter of 2009 compared to the fourth quarter of 2008. In addition, our focus on cost management has resulted in significant savings in overhead and vessel operating expenses. At the same time, our unique corporate structure and strategy of selling assets to our three daughter public companies has enabled accretive growth at our daughter companies while achieving our objective of reducing net debt at the Teekay parent level. Through vessel sales to third parties and our daughter companies, as well as cash flow from operations, Teekay parent's total net debt and newbuilding commitments were reduced by over $600 million in during 2009."

Mr. Moller added, "Teekay enters 2010 financially well-positioned with over $2.8 billion of total consolidated liquidity, including a fully-financed newbuilding program, with a favorable debt maturity profile with no significant near-term maturities, and with no current debt covenant concerns. Our successful $450 million bond offering completed in January 2010 has extended the maturity of a significant portion of our debt, which provides Teekay with greater financial flexibility going forward. In 2010, our key priorities include continuing to reduce net debt at the Teekay parent company level and to improve our profitability. We have been able to achieve substantial cost savings during 2009 and our focus in 2010 will be to sustain those cost savings while also achieve higher revenues, particularly in our offshore segment."

Operating Results

The following tables highlight certain financial information for each of Teekay's four publicly-listed entities: Teekay Offshore Partners L.P. (Teekay Offshore) (NYSE:TOO), Teekay LNG Partners L.P. (Teekay LNG) (NYSE:TGP), Teekay Tankers Ltd. (Teekay Tankers) (NYSE:TNK) and Teekay, excluding results attributed to Teekay Offshore, Teekay LNG and Teekay Tankers, referred to herein as Teekay Parent. A brief description of each entity and an analysis of its respective financial results follows the tables below. Please also refer to the "Fleet List" section below and Appendix B to this release for further details.



----------------------------------------------------------------------------
Three Months Ended December 31, 2009(i)
---------------------------------------
(unaudited)
------------
(in Teekay Teekay
thousands Offshore LNG Teekay Teekay
of U.S. Partners Partners Tankers Teekay Consolidation Corporation
dollars) LP LP Ltd. Parent Adjustments Consolidated
----------------------------------------------------------------------------

Net
revenues(1) 178,775 85,130 25,227 203,924 (44,137) 448,919
----------------------------------------------------------------------------

Vessel
operating
expenses(1) 61,642 20,837 9,244 72,495 - 164,218
Time-charter
hire
expense 28,141 - - 97,074 (44,137) 81,078
Depreciation
and
amortization 44,984 20,010 7,493 42,488 - 114,975
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Cash flow
from
vessel
operations
(2)(3)(4) 73,230 60,392 14,528 (18,740)(4) - 129,410
----------------------------------------------------------------------------
Net
debt(5) 1,573,867 1,419,252 294,796 877,705 - 4,165,620
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(i) Please see footnotes below the table on the following page.


----------------------------------------------------------------------------
Three Months Ended December 31, 2008
------------------------------------
(unaudited)

(in Teekay Teekay
thousands Offshore LNG Teekay Teekay
of U.S. Partners Partners Tankers Teekay Consolidation Corporation
dollars) LP LP Ltd. Parent Adjustments Consolidated
----------------------------------------------------------------------------

Net
revenues(1) 189,199 87,412 36,353 343,989 (45,336) 611,617
----------------------------------------------------------------------------

Vessel
operating
expenses(1) 58,237 20,414 9,829 81,951 - 170,431
Time-charter
hire
expense 34,852 - - 177,129 (45,336) 166,645
Depreciation
and
amortization 40,669 20,113 7,017 38,103 - 105,902
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Cash flow
from
vessel
operations
(2)(3) 65,346 54,212 22,288 57,327(4) - 199,173
----------------------------------------------------------------------------

Net
debt(5) 1,434,948 1,439,363 302,130 1,128,971 - 4,305,412
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(1) Commencing in 2009 and applied retroactively, the gains and losses
related to non-designated derivative instruments have been reclassified
to a separate line item in the Statements of Income (Loss) and are no
longer included in the amounts above.
(2) Cash flow from vessel operations represents income from vessel
operations before depreciation and amortization expense, vessel/goodwill
write-downs, gains and losses on the sale of vessels and unrealized
gains and losses relating to derivatives, but includes realized gains
and losses on the settlement of foreign currency forward contracts. Cash
flow from vessel operations is a non-GAAP financial measure used by
certain investors to measure the financial performance of shipping
companies. Please see the Company's Web site at www.teekay.com for a
reconciliation of this non-GAAP measure as used in this release to the
most directly comparable GAAP financial measure.
(3) Excludes the cash flow from vessel operations relating to assets
acquired from Teekay Parent for the periods prior to their acquisition
by Teekay Offshore, Teekay LNG and Teekay Tankers, respectively, as
those results are included in the historical results for Teekay Parent.
(4) In addition to Teekay Parent's cash flow from vessel operations, Teekay
Parent also received dividends/distributions from daughter public
companies of $42.3 million and $50.7 million for the three months ended
December 31, 2009 and 2008, respectively. The dividends/distributions
received by Teekay Parent include those made with respect to its general
partner interests in Teekay Offshore and Teekay LNG and its 49% interest
in Teekay Offshore Operating L.P., which is controlled by Teekay
Offshore.
(5) Net debt represents current and long-term debt less cash and, if
applicable, current and long-term restricted cash.


Teekay Offshore Partners L.P.

Teekay Offshore is an international provider of marine transportation and storage services to the offshore oil industry. Through its 51 percent ownership interest in Teekay Offshore Operating L.P. (OPCO), Teekay Offshore operates a fleet of 33 shuttle tankers (including seven chartered-in vessels), four floating storage and offtake (FSO) units, nine conventional oil tankers and two lightering vessels. Teekay Offshore also has direct ownership interests in two shuttle tankers, one FSO unit, one floating, production, storage and offloading (FPSO) unit and has the right to participate in certain other FPSO opportunities. As at December 31, 2009, Teekay Parent directly owned the remaining 49 percent interest in OPCO, as well as a 40.47 percent interest in Teekay Offshore (including the two percent sole general partner interest).

Cash flow from vessel operations from Teekay Offshore increased to $73.2 million in the fourth quarter of 2009, from $65.3 million in the same period of the prior year. This increase was primarily due to the acquisition from Teekay of the Petojarl Varg FPSO in September 2009 as well as lower time-charter hire expense as a result of a reduced in-chartered fleet, partially offset by lower shuttle tanker fleet utilization.

Teekay LNG Partners L.P.

Teekay LNG provides liquefied natural gas (LNG), liquefied petroleum gas (LPG) and crude oil marine transportation services under long-term, fixed-rate time-charter contracts with major energy and utility companies through its current fleet of 15 LNG carriers, three LPG carriers and eight Suezmax crude oil tankers. In addition, Teekay LNG expects to take delivery of three newbuilding LPG carriers in 2010 and 2011. Teekay Parent currently owns a 49.2 percent interest in Teekay LNG (including the two percent sole general partner interest).

Cash flow from vessel operations from Teekay LNG during the fourth quarter of 2009 increased to $60.4 million from $54.2 million in the same period of the prior year. This increase was primarily due to the delivery of the first two Skaugen LPG/Multigas carriers from subsidiaries of IM Skaugen ASA in April and November 2009, the acquisition of a 70 percent interest in the two Tangguh LNG carriers in August 2009 and the effect of the strengthening of the Euro against the U.S. Dollar on the Partnership's Euro-denominated revenues, partially offset by a decrease in the Teide Spirit profit share (the time charter for the Teide Spirit contains a profit share component tied to spot tanker rates which is determined in the fourth quarter of each year). In addition, there was a reduction in revenue in the fourth quarter of 2009 compared to the same quarter of the prior year due to a decrease in LIBOR which affected the daily charter rates that are adjusted for changes in LIBOR under the time-charter contracts for five of the Partnership's Suezmax tankers. This reduction is offset by a corresponding decrease in net interest expense.

On November 24, 2009, Teekay LNG completed a follow-on equity offering of 3.95 million common units (including the exercised portion of the underwriters' overallotment option), raising net proceeds of $91.9 million. Proceeds from the offering were used to repay amounts drawn under Teekay LNG's revolving credit facilities and for general corporate purposes.

On March 2, 2010, Teekay LNG agreed to acquire from Teekay two 2009-built Suezmax tankers and one 2007-built Handymax product tanker, and their respective long-term time-charter contracts, for a total cost of $160 million. This transaction is expected to be completed in mid-March 2010.

Teekay Tankers Ltd.

Teekay Tankers currently owns a fleet of nine Aframax tankers and three Suezmax tankers. Seven of the 12 vessels are currently employed on fixed-rate time charters mostly ranging from one to three years in initial duration, with the remaining vessels trading in the spot tanker market. Based on the existing fleet employment profile, approximately 55 percent of Teekay Tankers revenue days in 2010 are under fixed-rate charters. Teekay Parent currently owns a 42.2 percent interest in Teekay Tankers (including 100 percent of the outstanding Class B common shares).

Cash flow from vessel operations from Teekay Tankers decreased to $14.5 million in the fourth quarter of 2009, from $22.3 million in the same period of the prior year, primarily due to a decrease in spot tanker rates in the fourth quarter of 2009 compared to the same period of the prior year.

Teekay Parent

In addition to its equity ownership interests in Teekay Offshore, Teekay LNG and Teekay Tankers, Teekay directly owns a substantial fleet of vessels. As at February 28, 2010, this included 26 conventional tankers, four FPSOs, a 33 percent interest in four newbuilding LNG carriers under construction, four Aframax shuttle tanker newbuildings under construction, and one recently converted FSO unit. In addition, Teekay Parent had 34 chartered-in conventional tankers (including 10 vessels owned by its subsidiaries) and two chartered-in LNG carriers owned by Teekay LNG.

For the fourth quarter of 2009, Teekay Parent's cash flow from vessel operations decreased by $76.1 million from the same period of the prior year, primarily due to a decrease in average spot tanker rates and a decrease of 1,735 spot revenue days compared to the fourth quarter of 2008. Revenue days represent the total number of vessel calendar days less off-hire associated with major repairs, drydockings, or mandated surveys. In addition, Teekay Parent's fourth quarter 2009 cash flow from vessel operations was lower due to the sale of the Petrojarl Varg FPSO unit to Teekay Offshore in September 2009. The decrease in cash flow from vessel operations from Teekay Parent was partially offset by lower time-charter hire expense and reduced operating and overhead expenses as a result of cost reduction initiatives.

Tanker Market

During the latter part of the fourth quarter, spot tanker rates recovered from the multi-year lows of the previous quarter as a result of increased global oil demand, rising supply from both OPEC and non-OPEC sources, seasonal factors such as weather-related vessel delays and an increase in the use of conventional tankers for floating storage volumes, which tightened active fleet supply. Spot tanker rates remained strong during the first few weeks of 2010 largely due to severe winter weather conditions in the Northern Hemisphere which led to increased oil demand and caused weather-related delays. Subsequently, spot tanker rates have softened in late January and February due to easing seasonal factors and an increase in available fleet capacity as a result of a reduction in global floating storage volumes.

In January 2010, the International Monetary Fund (IMF) raised its global GDP growth forecast for 2010 to 3.9 percent from 3.1 percent. The upward adjustment is a result of indications of a stronger and faster recovery of the global economy than was previously anticipated. The International Energy Agency (IEA) has forecasted that global oil demand in 2010 will average 86.5 million barrels per day (mb/d) which represents a 1.6 mb/d (or 1.8 percent) increase from 2009 when global oil demand contracted by 1.5 percent compared to the prior year.

In 2009, the world tanker fleet grew by 7.3 percent as approximately 48 million deadweight tonnes (mdwt) of new capacity joined the worldwide fleet and approximately 19 mdwt was removed through scrapping or conversion for other uses. The tanker newbuilding delivery profile for 2010 is similar to 2009. However, there is potential for an increase in scrapping due to the International Maritime Organization (IMO) targeted phase-out of single hull tankers which could have a dampening effect on tanker supply and lead to lower fleet growth in 2010 compared to the prior year.

Teekay's Spot and Short-Term Time-Charter Tanker Fleet Performance

The following table highlights the consolidated operating performance of the Company's conventional spot tanker pools and period out-charters with an initial term of between one and three years, measured in net revenues per revenue day or time-charter equivalent (TCE) rates, in addition to average daily in-charter rates and total in-charter days for each respective period:



----------------------------------------------------------------------------
Three Months Ended

December 31, September 30, December 31,
2009 2009 2008
----------------------------------------------------------------------------
Suezmax
Gemini Suezmax Pool
average spot TCE
rate(1) $ 21,109 $ 14,878 $ 47,173
Spot revenue days(2) 1,084 1,074 628
Average time-charter
out rate (3)(4) $ 26,971 $ 35,018 $ 23,084
Time-charter revenue
days 370 294 616
Average in-charter rate $ 28,604 $ 28,524 $ 31,954
In-charter days 442 460 583

Aframax
Teekay Aframax
Pool average spot TCE
rate (1)(5) $ 13,963 $ 9,005 $ 33,596
Spot revenue days(2) 2,202 2,473 3,885
Average time-charter
rate (3) $ 29,543 $ 32,165 $ 32,196
Time-charter revenue
days 307 486 510
Average in-charter rate $ 20,629 $ 22,365 $ 28,503
In-charter days 1,602 1,971 3,027

LR2
Taurus LR2 Pool
average spot TCE rate
(1) $ 15,448 $ 15,737 $ 49,644
Spot revenue days(2) 368 368 460
Average time-charter
rate (3) $ 18,500 $ 18,500 $ 30,264
Time-charter revenue
days 92 64 184
Average in-charter rate $ 19,000 $ 19,082 $ 19,097
In-charter days 92 92 92

MR
MR product tanker
average spot TCE rate
(1) $ 9,746 $ 10,548 $ 22,350
Spot revenue days(2)
Average product tanker 108 272 524
time-charter rate (3) $ 20,600 $ 24,072 $ 26,405
Time-charter revenue
days 92 92 182
Average in-charter rate $ 22,386 $ 19,231 $ 22,653
In-charter days 108 272 616
----------------------------------------------------------------------------

(1) Average spot rates include short-term time-charters and fixed-rate
contracts of affreightment that are initially under a year in duration
and third-party vessels trading in the pools, but exclude vessels
greater than 15 years old.
(2) Spot revenue days include total owned and in-chartered vessels in the
Teekay consolidated fleet but exclude commercially managed vessels (of
third parties) in the pools.
(3) Average time-charter rates include realized gains and losses of
synthetic time-charters and forward freight agreements (FFAs), short-
term time-charters, and fixed-rate contracts of affreightment that are
initially between one and three years in duration.
(4) Average Suezmax time-charter rates exclude the cost of spot in-
chartering vessels for contract of affreightment cargoes.
(5) Including items outside of the pool (vessels greater than 15 years old
and realized results of bunker hedging and FFAs), the average Teekay
Aframax spot TCE rate was $13,244 per day, $10,185 per day and $32,482
per day during the three months ended December 31, 2009, September 30,
2009 and December 31, 2008, respectively.


Fleet List

In late-January 2010, Teekay Parent sold one of its older Aframax tankers for $10.3 million. As at February 28, 2010, Teekay's consolidated fleet consisted of 155 vessels, including chartered-in vessels, newbuildings under construction but excluding vessels managed for third parties, as summarized in the following table:



-------------------------------------------------------------------------
Number of Vessels (1)
-------------------------------------------------------------------------
Owned Chartered-in
Vessels Vessels Newbuildings Total
-------------------------------------------------------------------------
Teekay Parent Fleet (2)
Spot-rate:
----------
Aframax Tankers (3) 1 12 - 13
Suezmax Tankers 8 3 - 11
LR2 Product Tankers 4 2 - 6
-------------------------------------------------------------------------
Total Teekay Parent
Spot Fleet 13 17 - 30
--------------------------------------------------------------------------
Fixed-rate:
-----------
Aframax Tankers (3) 4 4 - 8
Suezmax Tankers 5 2 - 7
VLCC Tankers - 1 - 1
MR Product Tankers 4 - - 4
LNG Carriers (4) - - 4 4
Shuttle Tankers - - 4 4
FPSO Units 4 - - 4
FSO Units 1 - - 1
-------------------------------------------------------------------------
Total Teekay Parent
Fixed-rate Fleet 18 7 8 33
-------------------------------------------------------------------------
Total Teekay Parent
Fleet 31 24 8 63
-------------------------------------------------------------------------

Teekay Offshore Fleet
(5)(6) 44 7 - 51

Teekay LNG Fleet 26 - 3 29

Teekay Tankers Fleet 12 - - 12

-------------------------------------------------------------------------
Total Teekay
Consolidated Fleet 113 31 11 155
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(1) Excludes vessels managed on behalf of third parties.
(2) Excludes the fleet of OPCO, which is owned 51 percent by Teekay Offshore
and 49 percent by Teekay Parent. All of OPCO's 48 vessels are included
within the Teekay Offshore fleet.
(3) Excludes nine vessels chartered-in from Teekay Offshore Partners and one
vessel chartered-in from Teekay Tankers.
(4) Excludes two LNG carriers chartered-in from Teekay LNG.
(5) Includes five shuttle tankers in which Teekay Offshore's ownership is 50
percent and three shuttle tankers in which Teekay Offshore's ownership
is 67 percent.
(6) Includes one FSO in which Teekay Offshore's ownership is 89 percent.


Liquidity and Capital Expenditures

As at December 31, 2009, Teekay had consolidated liquidity of $1.9 billion, consisting of $422.5 million cash and $1.5 billion of undrawn revolving credit facilities, of which $1.0 billion, consisting of $207.8 million cash and $815.9 million of undrawn revolving credit facilities is attributable to Teekay Parent.

In January 2010, the Company completed a public offering of $450 million aggregate principal amount of senior unsecured notes due 2010, which bear interest at a rate of 8.5 percent per year. Concurrently, through a tender offer, the Company repurchased approximately $151.1 million aggregate principal amount of its outstanding 8.875 percent senior unsecured notes due July 2011 at an average price of 107.8 percent of their principal amount. Giving pro forma effect to the note offering and tender offer as if they had occurred on December 31, 2009, Teekay's total consolidated liquidity would have been $2.1 billion as of that date of which $1.2 billion would have been attributable to Teekay Parent. Including pre-arranged newbuilding financing of $710 million, Teekay's current total consolidated liquidity is approximately $2.8 billion.

The Company's remaining capital commitments relating to its portion of newbuildings were as follows as at December 31, 2009:



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(in millions) 2010 2011 2012 2013 Total
--------------------------------------------------------------------
Teekay Offshore - - - - -
--------------------------------------------------------------------
Teekay LNG $ 70 - - - $ 70
--------------------------------------------------------------------
Teekay Tankers - - - - -
--------------------------------------------------------------------
Teekay Parent $ 279 $ 309 $ 45 - $ 633
--------------------------------------------------------------------
Total Teekay Corporation Consolidated $ 349 $ 309 $ 45 $ - $ 703
--------------------------------------------------------------------


As indicated above, the Company had total capital expenditure commitments of approximately $703 million remaining as at December 31, 2009, for which all financing has been pre-arranged.

About Teekay

Teekay Corporation transports approximately 10 percent of the world's seaborne oil, has built a significant presence in the liquefied natural gas shipping sector through its publicly-listed subsidiary, Teekay LNG Partners L.P. (NYSE:TGP), is further growing its operations in the offshore oil production, storage and transportation sector through its publicly-listed subsidiary, Teekay Offshore Partners L.P. (NYSE:TOO), and continues to expand its conventional tanker business through its publicly-listed subsidiary, Teekay Tankers Ltd. (NYSE:TNK). With a fleet of 155 vessels, offices in 16 countries and approximately 6,300 seagoing and shore-based employees, Teekay provides a comprehensive set of marine services to the world's leading oil and gas companies, helping them seamlessly link their upstream energy production to their downstream processing operations. Teekay's reputation for safety, quality and innovation has earned it a position with its customers as The Marine Midstream Company.

Teekay's common stock is listed on the New York Stock Exchange where it trades under the symbol "TK".



TEEKAY CORPORATION
SUMMARY CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands of U.S. dollars, except share and per share data)
----------------------------------------------------------------------------
Three Months Ended Twelve Months Ended
-------------------------------- ----------------------
December September December December December
31, 30, 31, 31, 31,
--------- --------- ---------- ---------- ----------
2009 2009 2008 2009 2008
--------- --------- ---------- ---------- ----------
(unaudited) (unaudited) (unaudited) (unaudited) (unaudited)
----------------------------------------------------------------------------

REVENUES (1) 517,757 500,368 797,320 2,167,149 3,229,443
----------------------------------------------------------------------------

OPERATING
EXPENSES
Voyage expenses
(1) 68,838 71,659 185,703 294,091 758,388
Vessel operating
expenses (1)(2) 164,218 147,442 170,431 601,517 639,948
Time-charter hire
expense 81,078 94,964 166,645 429,321 612,089
Depreciation and
amortization 114,975 107,111 105,902 436,831 418,802
General and
administrative
(1)(2) 56,410 52,238 55,835 212,483 240,570
Loss (gain) on
sale of
vessels and
equipment, net
of write-downs 21,839 915 (10,554) 12,629 (50,267)
Goodwill
impairment
charge - 330,517 - 334,165
Restructuring
charges 2,427 1,456 4,449 14,444 15,629
----------------------------------------------------------------------------
509,785 475,785 1,008,928 2,001,316 2,969,324
----------------------------------------------------------------------------
Income (loss)
from vessel
operations 7,972 24,583 (211,608) 165,833 260,119
----------------------------------------------------------------------------
OTHER ITEMS
Interest expense
(1) (29,943) (30,035) (77,457) (141,448) (292,596)
Interest income
(1) 4,105 4,193 23,703 19,999 97,111
Realized and
unrealized gain
(loss) on
derivative
instruments (1) 56,980 (121,664) (447,373) 140,046 (565,411)
Income tax
(expense)
recovery (6,715) (10,904) 23,132 (18,889) 56,176
Equity income
(loss) from
joint
ventures (1) 11,843 (8,945) (25,305) 41,700 (36,085)
Foreign exchange
gain (loss) 8,978 (26,047) 23,908 (30,922) 24,727
Other income
(loss) - net 3,542 2,938 (1,899) 12,961 (3,935)
----------------------------------------------------------------------------
Net income (loss)
(3) 56,762 (165,881) (692,899) 189,280 (459,894)
Less: Net
(income) loss
attributable to
non-controlling
interests (40,898) 23,633 42,026 (74,800) (9,561)
----------------------------------------------------------------------------
Net income (loss)
attributable to
stockholders of
Teekay
Corporation 15,864 (142,248) (650,873) 114,480 (469,455)
----------------------------------------------------------------------------
Earnings (loss)
per common share
of Teekay
- Basic $0.22 $(1.96) $(8.98) $1.58 $(6.48)
- Diluted $0.22 $(1.96) $(8.98) $1.57 $(6.48)
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Weighted-average
number of common
shares
outstanding
- Basic 72,590,677 72,553,809 72,467,924 72,549,361 72,493,429
- Diluted 73,599,706 72,553,809 72,467,924 73,058,831 72,493,429
----------------------------------------------------------------------------

(1) Commencing in 2009 and applied retroactively, the realized and
unrealized gains and losses related to derivative instruments that are
not designated as hedges for accounting purposes have been reclassified
to a separate line item in the statements of income (loss). The realized
gains (losses) relate to the amounts the Company actually received or
paid to settle such derivative instruments and the unrealized gains
(losses) relate to the change in fair value of such derivative
instruments, as detailed in the table below:



Three Months Ended Twelve Months Ended
-----------------------------------------
December September December December December
31, 2009 30, 2009 31, 2008 31, 2009 31, 2008
------- --------- ----------- ----------- ---------
Realized (losses)
gains relating to:
Interest rate
swaps (36,199) (41,321) (9,925) (127,936) (38,286)
Foreign currency
forward
contracts
Vessel
operating
expenses (136) (926) (1,216) (6,826) 13,760
General and
administrative
expenses 78 (55) (1,171) (2,158) 8,485
Voyage expenses
and other - - (526) - 12,745
Bunkers, FFAs and
other (5,953) 2,655 (7,623) (1,293) (32,971)
----------------------------------------------------
(42,210) (39,647) (20,461) (138,213) (36,267)
----------------------------------------------------
Unrealized gains
(losses) relating
to:
Interest rate
swaps 94,377 (81,114) (432,066) 258,710 (487,546)
Foreign currency
forward
contracts (430) 2,060 (13,753) 14,797 (45,728)
Bunkers, FFAs and
other 5,243 (2,963) 18,907 4,752 4,130
----------------------------------------------------
99,190 (82,017) (426,912) 278,259 (529,144)
----------------------------------------------------
Total realized and
unrealized gains
(losses) on non-
designated
derivative
instruments 56,980 (121,664) (447,373) 140,046 (565,411)
----------------------------------------------------


In addition, equity income (loss) from joint ventures includes net unrealized gains (losses) from non-designated interest rate swaps held within the joint ventures of $11.8 million, $(10.2) million and $(30.4) million for the three months ended December 31, 2009, September 30, 2009, and December 31, 2008, respectively, and $32.4 million and $(33.0) million for the twelve months ended December 31, 2009 and 2008, respectively.



(2) The Company has entered into foreign currency forward contracts, which
are economic hedges of vessel operating expenses and general and
administrative expenses. Certain of these forward contracts have been
designated as cash flow hedges pursuant to United States GAAP.
Unrealized gains (losses) arising from hedge ineffectiveness from such
forward contracts are reflected in vessel operating expenses and general
and administrative expenses in the above Statements of Income (Loss), as
detailed in the table below:



Three Months Ended Twelve Months Ended
--------------------------------- ---------------------
December September December December December
31, 2009 30, 2009 31, 2008 31, 2009 31, 2008
---------- ---------- ---------- ---------- ----------
Vessel
operating
expenses (520) 2,979 (9,015) 9,155 (5,054)
General and
administrative (544) 2,615 (4,667) 5,760 (3,271)


(3) Commencing in 2009 and applied retroactively, the Company's net income
(loss) includes income attributable to non-controlling interests.



-----------------------------------------------------------------------
TEEKAY CORPORATION
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars)
-----------------------------------------------------------------------
As at
As at September As at
December 31, 30, December 31,
2009 2009 2008
(unaudited) (unaudited) (unaudited)
------------ ------------ ------------
ASSETS
Cash and cash equivalents 422,510 495,402 814,165
Other current assets 342,944 301,147 438,829
Restricted cash - current 36,068 37,845 35,841
Restricted cash - long-term 579,243 615,093 614,715
Vessels held for sale 10,250 34,637 69,649
Vessels and equipment 6,622,534 6,694,688 6,713,392
Advances on newbuilding
contracts 213,408 196,080 553,702
Derivative assets 48,115 85,006 167,326
Investment in joint ventures 129,248 117,204 103,956
Investment in direct financing
leases 507,512 481,489 79,508
Other assets 171,526 162,059 155,959
Intangible assets 213,870 238,392 264,768
Goodwill 203,191 203,191 203,191
-----------------------------------------------------------------------
Total Assets 9,500,419 9,662,233 10,215,001
-----------------------------------------------------------------------
-----------------------------------------------------------------------
LIABILITIES AND EQUITY
Accounts payable and accrued
liabilities 389,132 331,657 371,084
Other current liabilities 1,294 1,990 22,255
Current portion of long-term
debt 272,225 351,792 392,659
Long-term debt 4,931,216 4,991,302 5,377,474
Derivative liabilities 359,479 497,907 843,265
In process revenue contracts 244,360 264,237 317,865
Other long-term liabilities 227,540 267,764 237,994
Equity:
Non-controlling interests (1) 849,015 757,167 583,938
Stockholders of Teekay 2,226,158 2,198,417 2,068,467
-----------------------------------------------------------------------
Total Liabilities and Equity 9,500,419 9,662,233 10,215,001
-----------------------------------------------------------------------

(1) Effective January 1, 2009, Teekay amended the accounting and reporting
for non-controlling interest, which is now classified as a component of
equity.


----------------------------------------------------------------------
TEEKAY CORPORATION
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
----------------------------------------------------------------------
Year Ended December 31,
2009 2008
----------- -----------
(unaudited) (unaudited)
----------- -----------
Cash and cash equivalents provided by (used
for)
OPERATING ACTIVITIES
----------------------------------------------------------------------
Net operating cash flow 338,097 523,641
----------------------------------------------------------------------

FINANCING ACTIVITIES
Net proceeds from long-term debt 1,182,941 2,226,628
Scheduled repayments of long-term debt (217,703) (365,850)
Prepayments of long-term debt (1,583,852) (1,306,309)
Decrease in restricted cash 38,953 23,955
Repurchase of common stock - (20,512)
Net proceeds from the public offerings of
Teekay LNG 158,996 148,345
Net proceeds from the public offering of
Teekay Offshore 102,009 141,484
Net proceeds from the public offering of
Teekay Tankers 65,556 -
Cash dividends paid (91,747) (82,877)
Distribution from subsidiaries to non-
controlling interests (109,942) (91,794)
Other 2,007 3,014
----------------------------------------------------------------------
Net financing cash flow (452,782) 676,084
----------------------------------------------------------------------

INVESTING ACTIVITIES
Expenditures for vessels and equipment (495,214) (716,765)
Proceeds from sale of vessels and equipment 219,834 331,611
Purchase of marketable securities - (542)
Proceeds from sale of marketable securities - 11,058
Proceeds from sale of interest in Swift
Product Tanker Pool - 44,377
Purchase of Teekay Petrojarl ASA - (304,949)
Net loans to joint ventures (1,369) (229,940)
Other (221) 36,917
----------------------------------------------------------------------
Net investing cash flow (276,970) (828,233)
----------------------------------------------------------------------

(Decrease) increase in cash and cash
equivalents (391,655) 371,492
Cash and cash equivalents, beginning of the
year 814,165 442,673
----------------------------------------------------------------------
Cash and cash equivalents, end of the year 422,510 814,165
----------------------------------------------------------------------
----------------------------------------------------------------------



-------------------------------------------------------------------------
TEEKAY CORPORATION
APPENDIX A - SPECIFIC ITEMS AFFECTING NET INCOME
(in thousands of U.S. dollars, except per share data)
Set forth below is a reconciliation of the Company's unaudited adjusted
net loss attributable to stockholders of Teekay, a non-GAAP financial
measure, to net income and net income attributable to stockholders of
Teekay as determined in accordance with GAAP, adjusted for some of the
significant items of income and expense that affected the Company's net
income for the three and twelve months ended December 31, 2009, all of
which items are typically excluded by securities analysts in their
published estimates of the Company's financial results:

-------------------------------------------------------------------------
Three Months Ended Twelve Months Ended
--------------------- -------------------------
December 31, 2009 December 31, 2009
--------------------- -------------------------
(unaudited) (unaudited)
$ Per $ Per
$ Share(1) $ Share(1)
-------------------------------------------------------------------------
Net income - GAAP basis 56,762 189,280
Adjust for: Net income
attributable to non-
controlling interests (40,898) (74,800)
-------------------------------------------------------------------------
Net income attributable
to stockholders of
Teekay 15,864 0.22 114,480 1.57
Add (subtract) specific
items affecting net
income:
Unrealized gains
from derivative
instruments (2) (109,908) (1.49) (328,029) (4.49)
Foreign currency
exchange (gains)
losses (3) (8,978) (0.12) 30,922 0.42
Restructuring charge
(4) 2,427 0.03 14,444 0.20
Loss on sale of
vessels and
equipment and asset
impairments(5) 28,008 0.38 18,798 0.26
Non-recurring
adjustments to tax
accruals and deferred
income tax
expense on unrealized
foreign exchange
(losses) gains 15,625 0.21 42,037 0.57
Other (6) 6,466 0.09 13,285 0.18
Non-controlling
interests' share of
items above 17,239 0.23 6,579 0.09
-------------------------------------------------------------------------
Total adjustments (49,121) (0.67) (201,964) (2.77)
-------------------------------------------------------------------------
Adjusted net loss
attributable to
stockholders of Teekay (33,257) (0.45) (87,484) (1.20)
-------------------------------------------------------------------------

(1) Fully diluted per share amounts.
(2) Reflects the unrealized gains or losses relating to the change in the
mark-to-market value of derivative instruments that are not designated
as hedges for accounting purposes, including those included in equity
income (loss) from joint ventures, and the ineffective portion of
foreign currency forward contracts designated as hedges for accounting
purposes.
(3) Foreign currency exchange (gains) losses primarily relate to the
Company's debt denominated in Euros and deferred tax liability
denominated in Norwegian Kroner. Nearly all of the Company's foreign
currency exchange gains and losses are unrealized.
(4) Restructuring charges relate to the reorganization of certain of the
Company's operational functions and the re-flagging of certain of the
Company's shuttle tankers.
(5) Primarily relates to loss (gain) on sale of vessels and equipment,
write-downs of vessels and equipment, write-downs of intangible assets,
impairment on investment in joint venture and adjustment to the carrying
value of two shuttle tankers.
(6) Primarily relates to realized loss on early termination of interest rate
swap agreement, realized loss on embedded derivative settlement and loss
on bond repurchase (8.875 percent notes due 2011).


-------------------------------------------------------------------------
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 income attributable to stockholders of Teekay, a non-GAAP financial
measure, to net loss and net loss attributable to stockholders of Teekay
as determined in accordance with GAAP, adjusted for some of the
significant items of income and expense that affected the Company's net
loss for the three and twelve months ended December 31, 2008, all of
which items are typically excluded by securities analysts in their
published estimates of the Company's financial results:
-------------------------------------------------------------------------
Three Months Ended Twelve Months Ended
--------------------- -------------------------
December 31, 2008 December 31, 2008
--------------------- -------------------------
(unaudited) (unaudited)
$ Per $ Per
$ Share(1) $ Share(1)
-------------------------------------------------------------------------
Net loss - GAAP basis (692,899) (459,894)
Adjust for: Net loss
(income) attributable
to non-controlling
interests 42,026 (9,561)
--------------------------------------------------------------------------
Net loss attributable to
stockholders of Teekay (650,873) (8.98) (469,455) (6.48)
Add (subtract) specific
items affecting net
income:
Unrealized losses
from derivative
instruments (2) 469,520 6.48 547,735 7.56
Foreign currency
exchange gains (3) (22,290) (0.31) (24,844) (0.35)
Deferred income tax
expense on
unrealized foreign
exchange losses (4) (14,181) (0.20) (22,343) (0.31)
Restructuring charge
(5) 4,449 0.06 15,629 0.22
Gain on sale of
vessels and
equipment, net of
asset impairments
(6) (10,553) (0.15) (50,266) (0.69)
Goodwill impairment 330,517 4.56 334,165 4.61
Net effect from non-
cash changes in
purchase price
allocation
for the
acquisitions of 50
percent of OMI
Corporation and
Teekay
Petrojarl ASA (7) 908 0.01 15,698 0.22
Change in long-term
incentive plan
accruals (8) - - (22,606) (0.31)
Write-down of
marketable securities 6,273 0.09 20,158 0.28
Other (9) 510 0.01 4,886 0.06
Non-controlling
interests' share of
items above (61,036) (0.84) (63,429) (0.87)
--------------------------------------------------------------------------
Total adjustments 704,117 9.71 754,783 10.42
--------------------------------------------------------------------------
Adjusted net income
attributable to
stockholders of Teekay 53,244 0.73 285,328 3.94
--------------------------------------------------------------------------
(1) Fully diluted per share amounts.
(2) Reflects the unrealized gains or losses relating to the change in the
mark-to-market value of derivative instruments that are not designated
as hedges for accounting purposes, including those included in equity
income (loss) from joint ventures, and the ineffective portion of
foreign currency forward contracts designated as hedges for accounting
purposes.
(3) Foreign currency exchange gains primarily relate to the Company's debt
denominated in Euros and deferred tax liability denominated in Norwegian
Kroner. Nearly all of the Company's foreign currency exchange gains and
losses are unrealized.
(4) Primarily due to deferred income tax related to unrealized foreign
exchange gains and losses.
(5) Restructuring charges relate to the reorganization of certain of the
Company's operational functions.
(6) Primarily relates to gain on sale of vessels and equipment, write-downs
of vessels and equipment, and write-downs of intangible assets.
(7) Primarily relates to changes in amortization of intangible assets as a
result of adjustments to the purchase price allocation of OMI
Corporation and amortization of in-process revenue contracts as a result
of adjustments to the purchase price allocation of Teekay Petrojarl ASA.
(8) Relates to changes in accruals relating to the Company's long-term
incentive plan which is linked to the Company's share price. Amounts are
included in general and administrative expenses.
(9) Primarily relates to losses on bond repurchases (8.875 percent notes due
2011), a change in non-cash deferred tax balances, and settlement of a
previous claim against OMI Corporation.



---------------------------------------------------------------------
TEEKAY CORPORATION
APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY BALANCE SHEET AT DECEMBER 31, 2009
(in thousands of U.S. dollars)
---------------------------------------------------------------------
(unaudited)


Teekay Teekay Teekay
Offshore LNG Tankers
----------------------------------
ASSETS
Cash and cash equivalents 101,747 102,570 10,432
Other current assets 102,311 14,602 12,842
Restricted cash (current &
non-current) - 611,520 -
Vessels and equipment 1,917,248 1,817,350 506,309
Advances on newbuilding
contracts - 57,430 -
Derivative assets 8,347 32,131 -
Investment in joint
ventures - 81,132 -
Investment in direct
financing leases 56,261 416,541 -
Other assets 20,226 25,561 3,396
Advances to affiliates 17,673 20,714 223
Equity investment in
subsidiaries - - -
Intangibles and goodwill 163,998 168,307 6,761
----------------------------------

TOTAL ASSETS 2,387,811 3,347,858 539,963
----------------------------------

LIABILITIES AND EQUITY
Accounts payable and
accrued liabilities 73,698 52,210 13,902
Other current liabilities - 1,294 -
Advances from affiliates 99,876 111,104 -
Current portion of long-
term debt 108,159 107,697 3,600
Long-term debt 1,567,455 2,025,645 301,628
Derivative liabilities 70,179 134,006 13,893
In-process revenue
contracts - - 669
Other long-term liabilities 34,920 56,373 -
Equity:
Non-controlling interests
(1) 44,297 4,920 -
Equity attributable to
stockholders/
unitholders of
publicly-listed entities 389,227 854,609 206,271
----------------------------------

TOTAL LIABILITIES AND
EQUITY 2,387,811 3,347,858 539,963
----------------------------------

NET DEBT (2) 1,573,867 1,419,252 294,796
----------------------------------

----------------------------------------------------------------------
TEEKAY CORPORATION
APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY BALANCE SHEET AT DECEMBER 31, 2009
(in thousands of U.S. dollars)
----------------------------------------------------------------------
(unaudited)


Teekay Consolidation
Parent Adjustments Total
----------- ------------- ---------
ASSETS
Cash and cash equivalents 207,761 - 422,510
Other current assets 223,439 - 353,194
Restricted cash (current &
non-current) 3,791 - 615,311
Vessels and equipment 2,381,627 - 6,622,534
Advances on newbuilding
contracts 155,978 - 213,408
Derivative assets 7,637 - 48,115
Investment in joint
ventures 48,116 - 129,248
Investment in direct
financing leases 34,710 - 507,512
Other assets 122,343 - 171,526
Advances to affiliates (38,610) - -
Equity investment in
subsidiaries 1,204,518 (1,204,518) -
Intangibles and goodwill 77,995 - 417,061
-----------------------------------------

TOTAL ASSETS 4,429,305 (1,204,518) 9,500,419
-----------------------------------------

LIABILITIES AND EQUITY
Accounts payable and
accrued liabilities 249,322 - 389,132
Other current liabilities - - 1,294
Advances from affiliates (210,980) - -
Current portion of long-
term debt 52,769 - 272,225
Long-term debt 1,036,488 - 4,931,216
Derivative liabilities 141,401 - 359,479
In-process revenue
contracts 243,691 - 244,360
Other long-term liabilities 136,247 - 227,540
Equity:
Non-controlling interests
(1) 557 799,241 849,015
Equity attributable to
stockholders/
unitholders of
publicly-listed entities 2,779,810 (2,003,759) 2,226,158
-----------------------------------------
TOTAL LIABILITIES AND
EQUITY 4,429,305 (1,204,518) 9,500,419
-----------------------------------------
NET DEBT (2) 877,705 - 4,165,620
-----------------------------------------

(1) Non-controlling interests in the Teekay Offshore and Teekay LNG
columns represent the 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.
Commencing in 2009, non-controlling interest is included as
a component of equity.
(2) Net debt represents current and long-term debt less cash and,
if applicable, current and long-term restricted cash.

------------------------------------------------------------
TEEKAY CORPORATION
APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED
DECEMBER 31, 2009
(in thousands of U.S. dollars)
------------------------------------------------------------
(unaudited)


Teekay Teekay Teekay
Offshore LNG Tankers
-------- ------- -------

Voyage revenues 213,396 85,549 25,951
------------------------------

Voyage expenses 34,621 419 724
Vessel operating expenses 61,642 20,837 9,244
Time-charter hire expense 28,141 - -
Depreciation and
amortization 44,984 20,010 7,493
General and administrative 15,876 5,599 1,455
Loss on sale of vessels
and equipment, net of
write-downs - - -
Restructuring charge 955 197 -
------------------------------
Total operating expenses 186,219 47,062 18,916
------------------------------

Income (loss) from vessel
operations 27,177 38,487 7,035
------------------------------

Net interest expense (9,649) (9,636) (1,145)
Realized and unrealized
loss on derivative
instruments 15,844 526 2,031
Income tax (expense)
recovery 14,290 (1,137) -
Equity loss from joint
ventures - 5,591 -
Equity in earnings of
subsidiaries (1) - - -
Foreign exchange loss 1,837 8,675 (5)
Other - net 1,863 596 -
------------------------------
Net (loss) income 51,362 43,102 7,916
Less: Net loss (income)
attributable to non-
controlling interests (2) (1,820) (3,377) -
------------------------------
Net (loss) income
attributable to
stockholders/unitholders
of publicly-listed
entities 49,542 39,725 7,916
------------------------------

------------------------------
CASH FLOW FROM VESSEL
OPERATIONS (3) 73,230 60,392 14,528
------------------------------


-----------------------------------------------------------------------
TEEKAY CORPORATION
APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED DECEMBER 31,
2009
(in thousands of U.S. dollars)
-----------------------------------------------------------------------
(unaudited)


Teekay Consolidation
Parent Adjustments Total
----------- ------------- --------

Voyage revenues 242,447 (49,586) 517,757
---------------------------------------

Voyage expenses 38,523 (5,449) 68,838
Vessel operating expenses 72,495 - 164,218
Time-charter hire expense 97,074 (44,137) 81,078
Depreciation and
amortization 42,488 - 114,975
General and administrative 33,480 - 56,410
Loss on sale of vessels
and equipment, net of
write-downs 21,839 - 21,839
Restructuring charge 1,275 - 2,427
---------------------------------------
Total operating expenses 307,174 (49,586) 509,785
---------------------------------------

Income (loss) from vessel
operations (64,727) - 7,972
---------------------------------------

Net interest expense (5,408) - (25,838)
Realized and unrealized
loss on derivative
instruments 38,579 - 56,980
Income tax (expense)
recovery (19,868) - (6,715)
Equity loss from joint
ventures 6,252 - 11,843
Equity in earnings of
subsidiaries (1) 39,034 (39,034) -
Foreign exchange loss (1,529) - 8,978
Other - net 1,083 - 3,542
---------------------------------------
Net (loss) income (6,584) (39,034) 56,762
Less: Net loss (income)
attributable to non-
controlling interests (2) 108 (35,809) (40,898)
---------------------------------------
Net (loss) income
attributable to
stockholders/unitholders
of publicly-listed
entities (6,476) (74,843) 15,864
---------------------------------------

---------------------------------------
CASH FLOW FROM VESSEL
OPERATIONS (3) (18,740)(4) - 129,410
---------------------------------------

(1) Teekay Corporation's proportionate share of the net earnings of its
publicly-traded subsidiaries.
(2) Net (income) loss attributable to non-controlling interests in the
Teekay Offshore and Teekay LNG columns represent the joint venture
partners' share of the net income (loss) of the respective joint
ventures. Net (income) loss attributable to non-controlling interest in
the Consolidation Adjustments column represents the public's share of
the net income (loss) of Teekay's publicly-traded subsidiaries.
Commencing in 2009, the Company's net income (loss) includes income
(loss) attributable to non-controlling interests.
(3) Cash flow from vessel operations represents income from vessel
operations before depreciation and amortization expense, vessel/goodwill
write-downs, gains or losses on the sale of vessels and unrealized gains
and losses relating to derivatives, but includes realized gains and
losses on the settlement of foreign currency forward contracts. Cash
flow from vessel operations is a non-GAAP financial measure used by
certain investors to measure the financial performance of shipping
companies. Please see the Company's Web site at www.teekay.com for a
reconciliation of this non-GAAP financial measure as used in this
release to the most directly comparable GAAP financial measure.
(4) In addition to Teekay Parent's cash flow from vessel operations, Teekay
Parent also received dividends/distributions from the daughter public
companies of $42.3 million for the three months ended December 31, 2009.
The dividends/distributions received by Teekay Parent include those with
respect to its general partner interests in Teekay Offshore and Teekay
LNG and its 49% interest in Teekay Offshore Operating L.P. which is
controlled by Teekay Offshore.

------------------------------------------------------------------
TEEKAY CORPORATION
APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY STATEMENTS OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2009
(in thousands of U.S. dollars)
------------------------------------------------------------------
(unaudited)


Teekay Teekay Teekay
Offshore LNG Tankers
-------- -------- -------

Voyage revenues 821,856 321,129 113,303
--------------------------------

Voyage expenses 111,026 1,902 3,106
Vessel operating expenses 233,261 76,882 33,221
Time-charter hire expense 117,202 - -
Depreciation and amortization 166,350 78,397 28,660
General and administrative 58,016 18,162 6,694
Gain on sale of vessels and
equipment, net of write-downs - - -
Restructuring charge 5,008 3,250 -
--------------------------------
Total operating expenses 690,863 178,593 71,681
--------------------------------

Income (loss) from vessel
operations 130,993 142,536 41,622
--------------------------------

Net interest expense (42,083) (45,408) (6,942)
Realized and unrealized gain
(loss) on derivative
instruments 53,560 (40,950) 4,310
Income tax (expense) recovery (12,638) (694) -
Equity income (loss) from joint
ventures - 17,098 -
Equity in earnings of
subsidiaries (1) - - -
Foreign exchange loss (6,151) (10,835) (56)
Other - net 8,918 392 -
--------------------------------
Net income (loss) 132,599 62,139 38,934
Less: Net (income) loss
attributable to non-
controlling interests (2) (7,413) (1,969) -
--------------------------------
Net income (loss) attributable
to stockholders/unitholders
of publicly-listed
entities 125,186 60,170 38,934
--------------------------------

--------------------------------

CASH FLOW FROM VESSEL
OPERATIONS (3) 253,221 216,247 65,170
--------------------------------

-------------------------------------------------------------------------
TEEKAY CORPORATION
APPENDIX B - SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY STATEMENTS OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2009
(in thousands of U.S. dollars)
-------------------------------------------------------------------------
(unaudited)



Teekay Consolidation
Parent Adjustments Total
---------- ---------- ---------

Voyage revenues 1,111,091 (200,230) 2,167,149
------------------------------------

Voyage expenses 202,584 (24,527) 294,091
Vessel operating expenses 258,153 - 601,517
Time-charter hire expense 487,822 (175,703) 429,321
Depreciation and amortization 163,424 - 436,831
General and administrative 129,611 - 212,483
Gain on sale of vessels and
equipment, net of write-downs 12,629 - 12,629
Restructuring charge 6,186 - 14,444
------------------------------------
Total operating expenses 1,260,409 (200,230) 2,001,316
------------------------------------

Income (loss) from vessel
operations (149,318) - 165,833
------------------------------------

Net interest expense (27,016) - (121,449)
Realized and unrealized gain
(loss) on derivative
instruments 123,126 - 140,046
Income tax (expense) recovery (5,557) - (18,889)
Equity income (loss) from joint
ventures 24,602 - 41,700
Equity in earnings of
subsidiaries (1) 146,038 (146,038) -
Foreign exchange loss (13,880) - (30,922)
Other - net 3,651 - 12,961
------------------------------------
Net income (loss) 101,646 (146,038) 189,280
Less: Net (income) loss
attributable to non-
controlling interests (2) 271 (65,689) (74,800)
------------------------------------
Net income (loss) attributable
to stockholders/unitholders
of publicly-listed
entities 101,917 (211,727) 114,480
------------------------------------

------------------------------------

CASH FLOW FROM VESSEL
OPERATIONS (3) (8,398)(4) - 526,240
------------------------------------

(1) Teekay Corporation's proportionate share of the net earnings of its
publicly-traded subsidiaries.
(2) Net (income) loss attributable to non-controlling interests in the
Teekay Offshore and Teekay LNG columns represent the joint venture
partners' share of the net income (loss) of the respective joint
ventures. Net (income) loss attributable to non-controlling interest in
the Consolidation Adjustments column represents the public's share of
the net income (loss) of Teekay's publicly-traded subsidiaries.
Commencing in 2009, the Company's net income (loss) includes income
(loss) attributable to non-controlling interests.
(3) Cash flow from vessel operations represents income from vessel
operations before depreciation and amortization expense, vessel/goodwill
write-downs, gains or losses on the sale of vessels and unrealized gains
and losses relating to derivatives, but includes realized gains and
losses on the settlement of foreign currency forward contracts. Cash
flow from vessel operations is a non-GAAP financial measure used by
certain investors to measure the financial performance of shipping
companies. Please see the Company's Web site at www.teekay.com for a
reconciliation of this non-GAAP financial measure as used in this
release to the most directly comparable GAAP financial measure.
(4) In addition to Teekay Parent's cash flow from vessel operations, Teekay
Parent also received dividends/distributions from the daughter public
companies of $176.3 million for the year ended December 31, 2009. The
dividends/distributions received by Teekay Parent include those with
respect to its general partner interests in Teekay Offshore and Teekay
LNG and its 49% interest in Teekay Offshore Operating L.P., which is
controlled by Teekay Offshore.


FORWARD LOOKING STATEMENTS

This release contains forward-looking statements (as defined in Section 21E of the Securities Exchange Act of 1934, as amended) which reflect management's current views with respect to certain future events and performance, including statements regarding: tanker market fundamentals, including the balance of supply and demand in the tanker market, and spot tanker charter rates; the Company's financial strength, including the stability of its cash flows, the proportion of its total cash flows contributed from its fixed-rate businesses, its liquidity position, and debt maturity profile; upside potential from the Company's exposure to the spot market; the Company's future capital expenditure commitments and the financing requirements for such commitments; the impact on the Company's profitability through cost reductions and revenue improvements; the impact on the Company's financial leverage and flexibility resulting from its strategy of selling assets to its public company subsidiaries, Teekay LNG, Teekay Offshore and Teekay Tankers; and increased revenue from the offshore segment. The following factors are among those that could cause actual results to differ materially from the forward-looking statements, which involve risks and uncertainties, and that should be considered in evaluating any such statement: changes in production of or demand for oil, petroleum products, LNG and LPG, either generally or in particular regions; greater or less than anticipated levels of tanker newbuilding orders or greater or less than anticipated rates of tanker scrapping; changes in trading patterns significantly affecting overall vessel tonnage requirements; changes in applicable industry laws and regulations and the timing of implementation of new laws and regulations; changes in the typical seasonal variations in tanker charter rates; changes in the offshore production of oil or demand for shuttle tankers, FSOs and FPSOs; the potential for early termination of long-term contracts and inability of the Company to renew or replace long-term contracts; changes affecting the offshore tanker market; shipyard production delays; changes in the Company's expenses; the Company's future capital expenditure requirements; the inability of the Company to complete vessel sale transactions to its public company subsidiaries or to third parties; conditions in the United States capital markets; and other factors discussed in Teekay's filings from time to time with the SEC, including its Report on Form 20-F for the fiscal year ended December 31, 2008. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any such statement is based.

Contact Information

  • Teekay Corporation - Investor Relations enquiries
    Kent Alekson
    +1 (604) 844-6654
    or
    Teekay Corporation - Media enquiries
    Alana Duffy
    +1 (604) 844-6631
    www.teekay.com