HOUSTON, July 26, 2009 (GLOBE NEWSWIRE) -- GulfMark Offshore, Inc. (NYSE:GLF) today announced results of operations for the three and six months ended June 30, 2009. Net income for the second quarter of 2009 was $34.9 million, or $1.38 per diluted share, which includes a $0.03 per share gain on vessel sales.
2nd Quarter 2009 Compared to 2nd Quarter 2008
Revenue for the second quarter of 2009 was $104.7 million, an increase of 28% over the same period in the prior year. Operating income, excluding special items, was $38.2 million in the second quarter of 2009, an increase of 26% over the same period in 2008. The increase was chiefly due to the July 1, 2008 acquisition of GulfMark Americas, which contributed revenue of $27.9 million and operating income of $5.2 million during the second quarter of 2009.
2nd Quarter 2009 Compared to 1st Quarter 2009
Operating income for the second quarter of 2009, excluding special items, decreased $5.0 million, or 12%, compared to the first quarter of 2009. Day rates and utilization in the North Sea and day rates in Southeast Asia increased during the second quarter, but these improvements were more than offset by a decrease in utilization and lower day rates in the Americas.
Six Months Ended June 30, 2009
Revenues for the first six months of 2009 increased 29% over the same period in the prior year to $213.5 million, principally as a result of the acquisition of GulfMark Americas. Net income before special items was $67.3 million, or $2.66 per diluted share.
Commentary
"Our strength has always been our combination of forward contract commitments and our strong operations in geographically diverse international locations. That international base provides more than 75% of our consolidated revenues and remains firmly in place. The addition last year of our Gulf of Mexico operations gave us better long-term balance and a larger market footprint," commented Bruce Streeter, president and CEO, "but it also added to our mix a business with a very strong connection to the U.S. natural gas market, and a tendency to be more volatile than our other regions.
"We are in a tougher market in the Gulf of Mexico than virtually anyone predicted," continued Mr. Streeter, "and at the same time we have seen weakness in the North Sea spot market, another important market for GulfMark. We are financially strong and have the ability to adjust to these market conditions. For example, in the North Sea we have managed to reduce our spot exposure and expect to have limited involvement in spot market during the remainder of 2009. Also, a number of recent term contract signings has helped reduce our spot exposure and will lead to higher contract cover.
"Other markets have held up well for us so far in 2009. Southeast Asia is an example where demand for our vessels is holding, and we had 100% utilization in June. The sixth and final Keppel vessel, the Sea Comanche, joined our fleet late last week and will head to Indonesia shortly to complete an existing three year contract.
"Recently we took delivery of the Tiger, a 181 foot fast supply vessel, the last of the new construction vessels from the Gulf of Mexico purchase, and we sold one vessel during the quarter that had been in lay-up: a special purpose vessel that has not been included in our published vessel counts, but which was located in the North Sea."
Liquidity and Capital Commitments
Cash flow from operations totaled $54.2 million for the three months ended June 30, 2009, compared to $53.6 million for the same period in 2008. Estimated cash commitments for the remainder of 2009 for the new build program total approximately $56.4 million and are expected to be funded from cash on hand. Cash on hand at quarter end was $165.9 million and we have $95.0 million available under our $175.0 revolving credit facility. Total debt at June 30, 2009 was $468.2 million and $228.6 million of this total matures on June 30, 2010. We currently anticipate refinancing the maturing portion of the debt in the second half of 2009 or, alternatively, simply repaying the debt at maturity through a combination of cash on hand, cash generated from operations over the next year, and revolver availability.
Conference Call Information
GulfMark will conduct a conference call to discuss the earnings with analysts, investors and other interested parties at 9:00 a.m. EDT on Monday, July 27, 2009. Those interested in participating in the conference call should call 877-381-5943 (international callers should use 973-638-3424) five minutes in advance of the start time and ask for the GulfMark Second Quarter Earnings conference call. A telephonic replay of the conference call will be available for four days, starting approximately 2 hours after the completion of the call, and can be accessed by dialing 800-642-1687 (international callers should use 706-645-9291) and entering access code 19886341. The conference call will also be available via audio webcast and available for podcast download and can be accessed from the Investor Relations section of our website at www.GulfMark.com or by visiting www.InvestorCalendar.com. The webcast will be available for replay until October 28, 2009. A transcript of the call will be filed with the SEC on Form 8-K as soon as practicable.
GulfMark Offshore, Inc. provides marine transportation services to the energy industry through a fleet of offshore support vessels serving every major offshore energy market throughout the world.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve known and unknown risk, uncertainties and other factors. Among the factors that could cause actual results to differ materially are: price of oil and gas and their effect on industry conditions; industry volatility; fluctuations in the size of the offshore marine vessel fleet in areas where GulfMark operates; changes in competitive factors; delay or cost overruns on construction projects and other material factors that are described from time to time in the GulfMark's filings with the SEC. Consequently, forward-looking statements contained herein should not be regarded as representations that the projected outcomes can or will be achieved.
Reconciliation of Non-GAAP Measures
---------------------------------------------------------------------
Six Months Ended June 30, 2009
----------------------------------------------------
Tax Provision
Operating Benefit
Income (Provision) Net Income Diluted EPS
----------------------------------------------------
(in millions, except per share data)
Before Special
Items $ 81.3 $ (2.5) $ 67.3 $ 2.66
Impairment Charge $ (46.2) $ 17.0 $ (29.2) $ (1.15)
Gains on
Disposal of
Vessels 5.5 -- 5.5 0.22
Foreign Tax
Benefit, Net -- 5.5 5.5 0.22
----------------------------------------------------
$ (40.7) $ 22.5 $ (18.2) $ (0.72)
U.S. GAAP $ 40.6 $ 20.0 $ 49.1 $ 1.94
====================================================
Statement of
Operations
(unaudited)
------------
(in thousands, Three Months Ended
except per share -------------------------------------------------
data) June 30, March 31, Dec. 31, Sept. 30, June 30,
2009 2009 2008 2008 2008
--------- --------- --------- --------- ---------
Revenue $ 104,656 $ 108,795 $ 121,883 $ 124,616 $ 81,893
Direct operating
expenses 39,132 40,482 39,833 46,482 29,912
Drydock expense 2,642 2,238 1,493 3,504 2,630
General and
administrative
expenses 11,565 10,540 10,923 11,123 9,421
Depreciation and
amortization
expense 13,146 12,370 12,574 13,463 9,515
Gain on sale of
assets (869) (4,632) (16,054) (2,347) (16,407)
Impairment charge -- 46,247 -- -- --
--------- --------- --------- --------- ---------
Operating Income 39,040 1,550 73,114 52,391 46,822
Interest expense (4,946) (5,137) (7,023) (5,151) (935)
Interest income 76 60 469 385 296
Foreign currency
gain (loss) and
other 790 (2,206) (714) 2,278 195
--------- --------- --------- --------- ---------
Income before
income taxes 34,960 (5,733) 65,846 49,903 46,378
Income tax benefit
(provision) (37) 19,954 (6,526) (4,484) 403
--------- --------- --------- --------- ---------
Net Income $ 34,923 $ 14,221 $ 59,320 $ 45,419 $ 46,781
========= ========= ========= ========= =========
Earnings per share:
Basic $ 1.39 $ 0.57 $ 2.39 $ 1.83 $ 2.06
Diluted $ 1.38 $ 0.56 $ 2.35 $ 1.78 $ 2.00
Weighted average
common shares 25,132 24,978 24,867 24,865 22,661
Weighted average
diluted common
shares 25,362 25,190 25,195 25,445 23,334
Operating
Statistics Three Months Ended
----------- ------------------------------------------------
June 30, March 31, Dec. 31, Sept. 30, June 30,
2009 2009 2008 2008 2008
-------- -------- -------- -------- --------
Revenue by Region
(000's)
-----------------
North Sea based
fleet $ 46,324 $ 43,911 $ 52,995 $ 59,169 $ 53,452
Southeast Asia
based fleet 19,517 17,669 20,354 21,094 20,175
Americas based
fleet 38,815 47,215 48,534 44,353 8,266
Rates Per Day
Worked
-------------
North Sea based
fleet $ 21,199 $ 21,073 $ 21,176 $ 23,449 $ 21,766
Southeast Asia
based fleet 21,201 20,699 19,928 18,844 17,992
Americas based
fleet 15,704 17,302 17,090 16,815 15,854
Overall Utilization
-------------------
North Sea based
fleet 93.1% 84.5% 96.8% 94.1% 95.3%
Southeast Asia
based fleet 93.8% 87.2% 99.2% 97.2% 86.6%
Americas based
fleet 79.9% 92.9% 95.7% 93.9% 85.5%
Average Owned/
Chartered Vessels
------------------
North Sea based
fleet 25.0 25.9 26.3 27.0 27.0
Southeast Asia
based fleet 11.0 11.2 11.3 12.8 14.8
Americas based
fleet 34.8 33.2 32.7 31.0 7.0
-------- -------- -------- -------- --------
Total 70.8 70.3 70.3 70.8 48.8
======== ======== ======== ======== ========
Drydock Days
------------
North Sea based
fleet 16 46 29 28 51
Southeast Asia
based fleet 29 26 -- 5 21
Americas based
fleet 48 -- -- 55 84
-------- -------- -------- -------- --------
Total 93 72 29 88 156
======== ======== ======== ======== ========
Expenditures
(000's) $ 2,642 $ 2,238 $ 1,493 $ 3,504 $ 2,630
======== ======== ======== ======== ========
At July 14, 2009 At July 22, 2008
---------------- ----------------
2009(1) 2010(2) 2008(1) 2009(2)
------- ------- ------- -------
Forward Contract Cover(1)
-------------------------
North Sea based fleet 71% 50% 90% 56%
Southeast Asia based fleet 66% 46% 98% 69%
Americas based fleet 53% 27% 88% 44%
------- ------- ------- -------
Total 61% 38% 90% 53%
======= ======= ======= =======
(1) Forward contract cover represents number of days vessels are
under contract or option by customers for the remaining
quarters of the current year divided by total remaining days
vessels are available for charter hire for the same period.
(2) Represents full calendar year.
Statement of Operations (unaudited) Six Months Ended
---------------------------------- ----------------------
June 30, June 30,
2009 2008
--------- ---------
Revenue $ 213,451 $ 165,241
Direct operating expenses 79,614 57,610
Drydock expense 4,880 6,322
General and administrative expenses 22,105 18,198
Depreciation and amortization expense 25,516 18,263
Gain on sale of assets (5,501) (16,410)
Impairment Charge 46,247 --
--------- ---------
Operating Income 40,590 81,258
Interest expense (10,083) (2,117)
Interest income 136 592
Foreign currency gain (loss) and other (1,416) 45
--------- ---------
Income before income taxes 29,227 79,778
Income tax benefit (provision) 19,917 (733)
--------- ---------
Net Income $ 49,144 $ 79,045
========= =========
Earnings per share:
Basic $ 1.96 $ 3.50
Diluted $ 1.94 $ 3.40
Weighted average common shares 25,055 22,602
Weighted average diluted common shares 25,294 23,240
Operating Statistics Six Months Ended
-------------------- ----------------------
June 30, June 30,
2009 2008
--------- ---------
Revenue by Region (000's)
-------------------------
North Sea based fleet $ 90,235 $ 113,960
Southeast Asia based fleet 37,186 36,403
Americas based fleet 86,030 14,878
Rates Per Day Worked
--------------------
North Sea based fleet $ 21,138 $ 23,384
Southeast Asia based fleet 20,959 16,179
Americas based fleet 16,541 14,507
Overall Utilization
-------------------
North Sea based fleet 88.8% 93.8%
Southeast Asia based fleet 90.5% 91.3%
Americas based fleet 86.2% 86.7%
Average Owned/Chartered Vessels
-------------------------------
North Sea based fleet 25.4 27.7
Southeast Asia based fleet 11.1 13.9
Americas based fleet 34.0 6.7
--------- ---------
Total 70.5 48.3
========= =========
Drydock Days
------------
North Sea based fleet 75 96
Southeast Asia based fleet 55 34
Americas based fleet 48 122
--------- ---------
Total 178 252
========= =========
Expenditures (000's) $ 4,880 $ 6,322
========= =========
Vessel Count by Reporting Segment
------------------------------------------
North Southeast
Sea Asia Americas Total
--------- --------- --------- ---------
Owned Vessels as of
April 27, 2009 25 11 35 71
--------- --------- --------- ---------
Newbuild Deliveries -- 1 1 2
Sales/Disposition -- -- -- --
Intersegment Transfers -- -- -- --
--------- --------- --------- ---------
Owned Vessels as of
July 26, 2009 25 12 36 73
Managed Vessels 17 2 5 24
--------- --------- --------- ---------
Total Fleet as of
July 26, 2009 42 14 41 97
========= ========= ========= =========
Balance Sheet Data (unaudited) As of As of
($000) June 30, 2009 December 31, 2008
----------------------------- ----------------- -----------------
Cash and cash equivalents $ 165,936 $ 100,761
Working capital (7,168) 138,006
Vessel and equipment, net 1,099,593 1,035,436
Construction in progress 72,410 134,077
Total assets 1,624,683 1,556,967
Long term debt (1) 239,660 462,941
Shareholders' equity 966,222 854,843
(1) Short-term portion of long-term debt included in working capital.
----------------- -----------------
Cash Flow Data (unaudited) Six Months Ended Six Months Ended
($000) June 30, 2009 June 30, 2008
------------------------- ----------------- -----------------
Cash flow from operating
activities $ 91,223 $ 76,646
Cash flow used in investing
activities (20,368) (41,872)
Cash flows (used in)
provided by financing
activities (12,592) 140,565