HOUSTON, Feb. 26, 2007 (PRIME NEWSWIRE) -- GulfMark Offshore, Inc. (Nasdaq:GMRK) today announced net income of $30.6 million, or $1.42 per diluted share on revenue of $69.0 million for the quarter ended December 31, 2006. This compares to net income of $8.2 million, or $0.39 per diluted share on revenue of $51.6 million for the fourth quarter of 2005. The current quarter includes a $3.6 million, or $0.17 per diluted share), gain on the previously announced sale of the Sentinel.
For the year ended December 31, 2006 net income was a record $89.7 million, or $4.28 per diluted share, on record revenue levels of $250.9 million. For the year ended December 31, 2005, the reported net income was $38.4 million, or $1.86 per diluted share. Operating income for the year ended December 31, 2006 was $107.3 million compared to $59.7 million for the year ended December 31, 2005. The 2006 results include $10.2 million, or $0.49 per diluted share in gains on the sale of two of the older vessels in the fleet, the Highland Patriot and the Sentinel.
The fourth quarter 2006 financial results, when compared to the same period in 2005, reflect the continued strength in the market. Operating income for the three months ended December 31, 2006 was $34.0 million, compared to $13.1 million for the same period in 2005. The increase in operating income for the quarter was mainly driven by the 34% increase in revenue from $51.6 million in 2005 to $69.0 million in 2006. The increase in revenue resulted mainly from higher day rates, and the addition of the new vessels, the Sea Intrepid for the full year, and the Sea Guardian and Sea Sovereign for a portion of the year, partially offset by the lost revenue from the vessels sold.
Bruce Streeter, President and CEO of the Company commented: "The year 2006 exceeded our expectations from the outset and continued throughout the year. Our results for the fourth quarter were bolstered by demand and day rates which carried over from the strong summer and fall periods in the North Sea and steady demand in our other markets. The addition of the two new vessels in Southeast Asia continues to add to our capabilities to meet the growing demands of our customers in that region. We have set a number of records from both an earnings and operating perspective which will serve as a foundation for the years to come. As a result, our balance sheet is the strongest in our history and will allow us to take advantage of growth opportunities as and when they occur.
As we look to 2007 and beyond, our overall contract cover continues to remain strong with our contract cover for 2007 and 2008 approximately 70% and 42%, respectively. This will help provide earnings stability and create a strong cash flow as we continue on our new build program. The new build program reflects a disciplined approach to matching our equipment to our customers' needs, increases asset value and enhances our earnings potential. In 2007, four of our nine new build vessels are scheduled to be delivered. Two of the new design PSV's in the North Sea are due to be delivered at the end of the first and fourth quarters. Toward the end of the third quarter, we anticipate delivery in Southeast Asia of the Sea Supporter while the first of the as yet unnamed AHTS's being built in Singapore is anticipated to be delivered during the fourth quarter. We expect demand for vessel services to remain strong throughout all of our markets during 2007 and believe that our strategy of both growing and replacing our fleet with vessels suited to a variety of support applications is the prudent way to continue to build shareholder value in the long term."
At December, 2006 the Company had working capital of $104.9 million, including $82.8 million in cash. The Company repaid all of the $83.2 million due under the revolving credit facility during the fourth quarter and at December 31 had only $159.5 million of 7.75% senior notes outstanding as long-term debt.
GulfMark will hold a conference call to discuss the earnings with analysts, investors and other interested parties at 8:30 A.M. EST/7:30 A.M. CST today, February 26, 2007. 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 conference. The conference call will also be available via audio web cast at http://www.vcall.com or 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 7925412.
GulfMark Offshore, Inc. provides marine transportation services to the energy industry through a fleet of fifty-nine (59) 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
---------------------------------------
December 31, September 30, December 31,
2006 2006 2005
-------- -------- --------
Revenues $ 68,982 $ 75,831 $ 51,588
Direct operating expenses 24,147 23,450 22,567
Drydock expense 1,206 1,507 2,536
Bareboat charter expense -- -- 1,046
General and administrative
expenses 6,249 6,126 5,184
Depreciation expense 7,021 7,033 7,161
Gain on sale of assets (3,597) (6,640) --
-------- -------- --------
Operating Income 33,956 44,355 13,094
Interest expense (3,417) (3,797) (4,827)
Interest income 698 134 260
Foreign currency gain
(loss) and other (166) 373 790
-------- -------- --------
Income before income taxes 31,071 41,065 9,317
Income tax provision (491) (1,213) (1,140)
-------- -------- --------
NET INCOME $ 30,580 $ 39,852 $ 8,177
======== ======== ========
Earnings per share:
-------------------
Basic $ 1.47 $ 1.96 $ 0.41
Diluted $ 1.42 $ 1.91 $ 0.39
Weighted average
common shares 20,840 20,300 20,091
Weighted average
diluted common shares 21,505 20,855 20,787
Operating Statistics
-------------------- Three Months Ended
---------------------------------------
December 31, September 30, December 31,
2006 2006 2005
-------- -------- --------
Revenues by Region (000's)
North Sea based fleet $55,217 $65,523 $39,160
Southeast Asia based fleet 8,567 7,741 5,710
Americas based fleet 5,198 5,567 6,718
Rates Per Day Worked
North Sea based fleet $20,194 $23,366 $14,974
Southeast Asia based fleet 8,525 7,094 6,083
Americas based fleet 10,898 10,809 11,277
Overall Utilization
North Sea based fleet 96.7% 96.9% 93.6%
Southeast Asia based fleet 92.7% 99.1% 94.9%
Americas based fleet 88.5% 95.9% 95.4%
Average Owned/Chartered Vessels
North Sea based fleet 30.1 31.0 31.0
Southeast Asia based fleet 12.0 11.9 10.7
Americas based fleet 6.0 6.0 7.0
------- ------- -------
Total 48.1 48.9 48.7
======= ======= =======
Drydock Activity(1)
North Sea based fleet -- 2 1
Southeast Asia based fleet 1 -- 1
Americas based fleet 1 -- 1
------- ------- -------
Total 2 2 3
======= ======= =======
Expenditures (000's) $ 1,206 $ 1,507 $ 2,536
======= ======= =======
At February 23, 2007 At March 1, 2006
-------------------- ------------------
2007(3) 2008(3) 2006(3) 2007(3)
------ ------ ------ ------
Forward Contract Cover(2)
------------------------
North Sea based fleet 76.9% 49.3% 82.6% 41.9%
Southeast Asia
based fleet 39.8% 8.5% 42.7% 9.9%
Americas based fleet 100.0% 78.7% 92.8% 73.5%
Total 69.8% 41.9% 75.0% 39.2%
(1) Represents number of completed drydocks in period.
(2) 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.
(3) Represents full year (1/1-12/31).
Statement of Operations Twelve Months Ended
------------------------ ------------------------
December 31,
2006 2005
--------- ---------
Revenues $ 250,921 $ 204,042
Direct operating expenses 91,874 82,803
Drydock expense 9,049 9,192
Bareboat charter expense -- 3,864
General and administrative expenses 24,504 19,572
Depreciation expense 28,470 28,875
Gain on sale of assets (10,237) --
--------- ---------
Operating Income 107,261 59,736
Interest expense (15,648) (19,017)
Interest income 1,263 569
Foreign currency gain (loss) and other (95) 484
--------- ---------
Income before income taxes 92,781 41,772
Income tax provision (3,052) (3,382)
--------- ---------
NET INCOME $ 89,729 $ 38,390
========= =========
Earnings per share:
-------------------
Basic $ 4.40 $ 1.92
Diluted principle $ 4.28 $ 1.86
Weighted average common shares 20,377 20,031
Weighted average diluted common shares 20,975 20,666
Operating Statistics Twelve Months Ended
-------------------- ------------------------
December 31,
2006 2005
--------- ---------
Revenues by Region (000's)
-------------------------
North Sea based fleet $199,368 $160,276
Southeast Asia based fleet 27,385 19,570
Americas based fleet 24,168 24,196
Average Rates Per Day Worked
----------------------------
North Sea based fleet $ 19,164 $ 15,530
Southeast Asia based fleet 7,062 5,849
Americas based fleet 11,014 11,518
Overall Utilization
-------------------
North Sea based fleet 94.9% 91.9%
Southeast Asia based fleet 92.3% 91.6%
Americas based fleet 96.0% 95.6%
Average Owned/Chartered Vessels
-------------------------------
North Sea based fleet 30.4 30.8
Southeast Asia based fleet 11.7 10.2
Americas based fleet 6.4 6.2
--------- ---------
Total 48.5 47.2
======== ========
Drydock Activity(1)
------------------
North Sea based fleet 12 10
Southeast Asia based fleet 5 4
Americas based fleet 2 3
--------- ---------
Total 19 17
======== ========
Expenditures (000's) $ 9,049 $ 9,192
======== ========
(1) Represents number of completed drydocks in period.
Balance Sheet Data ($000) As of December 31,
-------------------------- -------------------------
2006 2005
-------- --------
Cash and Cash Equivalents $ 82,759 $ 24,190
Working capital 104,948 36,219
Vessel and equipment, net 524,676 485,417
Construction in progress 47,313 25,029
Total assets 750,829 613,915
Long term debt 159,490 247,685
Stockholders' equity 541,428 320,096
Cash Flow Data ($000) Twelve Months Ended
----------------------- -------------------------
2006 2005
-------- --------
Cash flow from operating activities $104,869 $ 64,913
Cash flow used in investing activities (28,300) (43,343)
Cash flow used in financing activities (20,679) (15,674)