HOUSTON, May 4, 2006 (PRIMEZONE) -- GulfMark Offshore, Inc. (Nasdaq:GMRK) today announced net income of $6.3 million, or $0.30 per diluted share on revenue of $47.7 million for the quarter ended March 31, 2006. This compares to net income of $8.9 million, or $0.43 per share (diluted) on revenue of $48.1 million for the first quarter of 2005.
Operating income for the three months ended March 31, 2006 was $10.2 million, compared to $15.1 million for the same period in 2005. The decrease in operating income for the quarter was mainly driven by an increase in operating costs due to drydock expense, the addition of three vessels (Titan, Coloso, Sea Intrepid) and vessel repositioning.
Mr. Bruce Streeter, President and COO of the Company, commented: "Current market conditions are extremely positive in all our markets around the world and we expect this trend to continue to improve as the year develops. In order to maximize the benefit from this potential we went ahead and, as previously discussed, front loaded as many dry-dock days in the first part of the year as we could. We do not expect this decision to adversely affect our full year results. In fact, as we look ahead at 2006 and beyond we have increased the earnings and cash flow stability provided from a growing forward contract cover."
Mr. Streeter continued, "On April 20, 2006, the Sea Guardian was delivered to our South East Asia operations and on May 1st began its first contract at an attractive rate. Our second 2006 newbuild, the Sea Sovereign, a 5,500 BHP, Dynamic Positioning II anchorhandling, towing supply vessel, is expected to deliver in the fourth quarter of 2006. Continued progress is also being made on the construction of our other eight newbuilds. Just as previous vessel additions were largely responsible for the significant improvement in 2005 earnings, we believe our latest newbuilds will afford us significant increases in asset value and earnings capacity at an exciting period of industry expansion."
At March, 2006 the Company had working capital of $44.9 million, including $33.5 million in cash. The Company had total debt of $250.1 million, consisting of $159.4 million of 7.75% senior notes, $10.3 million related to certain vessel mortgages, $0.3 million related to the Aker Joint Venture capital contribution (construction of the Aker PSV09 vessel), and $80.1 million under our revolving credit facilities.
GulfMark will hold a conference call to discuss the earnings with analysts, investors and other interested parties at 9:00 A.M. EDT/8:00 A.M. CDT on May 5, 2006. Those interested in participating in the conference call should call 877/381-5943 (706/679-4543, if outside the U.S. and Canada) 5 minutes in advance of the start time and ask for the GulfMark 1st Quarter Earnings conference. The conference call will also be available via audio web cast and podcast at http://www.investorcalendar.com. A telephonic replay of the conference call will be available for 4 days, starting approximately 2 hours after the completion of the call, and can be accessed by dialing 800/642-1687 (international calls should use 706/645-9291) and entering access code 8625390.
GulfMark Offshore, Inc. provides marine transportation services to the energy industry through a fleet of sixty (60) offshore support vessels, primarily in the North Sea, offshore Southeast Asia, and the Americas.
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 the Company 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 Company's filings with the SEC. Consequently, the forward-looking statements contained herein should not be regarded as representations that the projected outcomes can or will be achieved.
Statement of Operations Three Months Ended
------------------------ --------------------------------
March 31, December 31, March 31,
2006 2005 2005
-------- -------- --------
Revenues $ 47,675 $ 51,588 $ 48,066
Direct operating expenses 21,784 22,567 19,156
Drydock expense 2,756 2,536 1,549
Bareboat charter expense -- 1,046 381
General and administrative
expenses 5,901 5,184 4,716
Depreciation expense 7,061 7,161 7,198
-------- -------- --------
Operating Income 10,173 13,094 15,066
Interest expense (4,298) (4,827) (4,770)
Interest income 165 260 48
Foreign currency gain (loss)
and other 511 790 (1,036)
-------- -------- --------
Income from continuing operations
before income taxes 6,551 9,317 9,308
Income tax (provision) benefit (288) (1,140) (381)
-------- -------- --------
NET INCOME $ 6,263 $ 8,177 $ 8,927
======== ======== ========
Earnings per share:
-------------------
Basic $ 0.31 $ 0.41 $ 0.45
Diluted $ 0.30 $ 0.39 $ 0.43
Weighted average common shares 20,143 20,091 19,998
Weighted average diluted
common shares 20,793 20,787 20,567
Operating Statistics Three Months Ended
-------------------- -----------------------------------
March 31, December 31, March 31,
2006 2005 2005
------- ------- -------
Revenues by Region (000's)
--------------------------
North Sea based fleet $35,822 $39,160 $38,460
Southeast Asia based fleet 4,977 5,710 4,457
Americas based fleet 6,876 6,718 5,149
Rates Per Day Worked
--------------------
North Sea based fleet $14,665 $14,974 $16,251
Southeast Asia based fleet 6,142 6,083 5,744
Americas based fleet 11,233 11,277 11,653
Overall Utilization
-------------------
North Sea based fleet 92.0% 93.6% 90.0%
Southeast Asia based fleet 83.7% 94.9% 89.7%
Americas based fleet 99.7% 95.4% 99.8%
Average Owned/Chartered Vessels
-------------------------------
North Sea based fleet 30.0 31.0 30.3
Southeast Asia based fleet 11.0 10.7 10.0
Americas based fleet 7.0 7.0 5.0
------- ------- -------
Total 48.0 48.7 45.3
======= ======= =======
Drydock Activity (a)
--------------------
North Sea based fleet 4 1 3
Southeast Asia based fleet 2 1 0
Americas based fleet 1 1 0
------- ------- -------
Total 7 3 3
======= ======= =======
Expenditures (000's) $ 2,756 $ 2,536 $ 1,549
======= ======= =======
At May 4, 2006 At May 9, 2005
------------------ ------------------
2006(c) 2007(c) 2005(c) 2006(c)
------- ------- ------- -------
Forward Contract Cover(b)
-------------------------
North Sea based fleet 86.2% 42.7% 67.8% 41.4%
Southeast Asia based fleet 44.8% 9.0% 62.7% 12.7%
Americas based fleet 90.4% 73.5% 95.0% 78.5%
------- ------- ------- -------
Total 76.7% 38.9% 70.5% 40.8%
======= ======= ======= =======
(a) Represents number of completed drydocks in period.
(b) Forward contract cover represents number of days vessels are
under contract or option by customers divided by total calendar
days vessels are available for charter hire.
(c) Represents full year (1/1-12/31).
As of As of
Balance Sheet Data ($000) March 31, 2006 December 31, 2005
-------------------------- -------------- -----------------
Cash $33,472 $24,190
Working capital 44,859 34,941
Vessel and equipment, net 486,614 485,417
Construction in progress 25,886 25,029
Total assets 625,295 613,915
Long term debt 243,632 247,685
Shareholders' equity 336,877 320,096
Three Months Twelve Months
Ended Ended
Cash Flow Data ($000) March 31, 2006 December 31, 2005
---------------------- --------------- -----------------
Cash flow from operating
activities $ 9,388 $ 64,913
Cash flow used in investing
activities (855) (43,343)
Cash flow (used in) provided
by financing activities 55 (15,674)