HOUSTON, Feb. 23, 2009 (GLOBE NEWSWIRE) -- GulfMark Offshore, Inc. (NYSE:GLF) today announced results of operations for the fourth quarter and twelve months ended December 31, 2008. Highlights for those periods include:
* Quarterly Operating Income Margin of 47% (60% Including Vessel
Sales)
* Quarterly Diluted EPS of $2.35 ($1.72 Excluding Vessel Sales)
* Annual Diluted EPS of $7.56
* Quarterly Utilization in the North Sea (96.8%) and Southeast
Asia (99.2%)
* Contract Cover for 2009 at 65% and 34% for 2010
4th Quarter 2008 Compared to 4th Quarter 2007
Revenue for the fourth quarter of 2008 was $121.9 million, an increase of 33% over the same period in the prior year. Operating income was $57.1 million in the fourth quarter of 2008, before gains on vessel sales, an increase of 53% over the prior period in 2007. Net income for the fourth quarter of 2008, also excluding gains on vessel sales, was $1.72 per diluted share. GulfMark Americas operations, formerly Rigdon Marine, which was acquired on July 1, 2008, contributed revenue of $37.2 million during the fourth quarter and operating income of $16.0 million. The ongoing rejuvenation of the Southeast Asia fleet, and its resulting improvement in earnings capacity drove the remaining increase in operating income of $3.7 million along with additional improvements in the Americas, offset by foreign currency movements in the North Sea.
4th Quarter 2008 Compared to 3rd Quarter 2008
Operating income, excluding gains on vessel sales, increased $7.0 million, or 14%, sequentially even though revenue declined over the same period by $2.7 million, or 2%. All regions delivered increased operating margins driven primarily by the Americas, which had improved utilization and reduced drydock expense. The North Sea had a strong improvement in utilization but the impact was largely offset by adverse foreign currency movements, while Southeast Asia's increase in operating margin was driven by a significant reduction in operating expenses for the quarter.
Fiscal Year 2008 Compared to Fiscal Year 2007
Revenue for 2008 was $411.7 million, an increase of 35% compared to $306.0 million in fiscal year 2007. Operating income, excluding gains on sale of assets, increased by 41% to $172.0 million as compared to the prior year of $122.1 million. Net income was $183.8 million, an increase of 86% compared to $99.0 million in fiscal year 2007. Annual diluted EPS was $7.56, an increase of 76% over the prior year. Excluding gains on sale of assets, annual EPS increased by 63% to $6.13 per diluted share compared to the prior year of $3.76 per diluted share.
"2008 has been a year of growth and development for GulfMark," commented Bruce Streeter, President and CEO. "The company took significant steps over the past twelve months to increase its global footprint through the addition of the 22 vessel Gulf of Mexico fleet provided through the Rigdon Marine acquisition. We have further refined and upgraded our fleet in 2008 with the addition of seven new build vessels and the sale of five older vessels. As demonstrated through our positive annual results, our ongoing vision to grow a modern fleet through acquisitions and new vessel construction, as well as diligently expand into profitable markets, improved our 2008 earnings and positions us for stronger growth in the future.
"As mentioned in the third quarter earnings release, GulfMark sold the North Fortune, a PSV built in 1983 and took delivery of the Mako, an FSV, in October. In February, the company took delivery of the Swordfish, a crew boat based in the Gulf of Mexico. GulfMark is scheduled to take delivery of six new vessels in 2009 and another six in 2010. The company's next delivery is the Sea Cherokee, an AHTS, scheduled for March 2009, which will be on a long term contract based in Southeast Asia.
"While current market conditions are uncertain, we are confident in our ability to navigate this more challenging environment. GulfMark's financial position is solid and we remain focused on our long term strategy and the potential opportunities that unstable markets often provide. Our liquidity is stronger than it has ever been and our young, modern, technologically advanced fleet already has 65% contract cover for 2009."
Liquidity and Capital Commitments
Cash flow from operations totaled $205.2 million for the twelve months ended December 31, 2008, compared to $128.6 million for the same period in 2007. The company made significant investments in 2008, including $108.6 million in capital expenditures, primarily related to the new build program and $121.6 million related to the acquisition of Rigdon Marine. Estimated cash commitments for 2009 for the new build program are approximately $111.0 million and are expected to be funded from cash on hand and cash flow from operations.
Liquidity at quarter-end was $228.8 million, consisting of $138.0 million of working capital and $90.8 million available under the company's $175.0 revolving credit facility. Total debt at December 31, 2008 was $481.9 million and cash on hand was $100.8 million.
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. EST on Monday, February 23, 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 Fourth 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 84504120. 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 GulfMark's website at www.GulfMark.com or by visiting www.InvestorCalendar.com. The webcast will be available for replay until May 23, 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 95 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.
Statement of Operations (unaudited)
-----------------------------------
Three Months Ended
------------------------------------------------
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
2008 2008 2008 2008 2007
-------- -------- -------- -------- --------
Revenue $121,883 $124,616 $ 81,893 $ 83,348 $ 91,455
Direct operating
expenses 39,833 46,482 29,912 27,698 31,908
Drydock expense 1,493 3,504 2,630 3,692 4,067
General and
administrative
expenses 10,923 11,123 9,421 8,777 9,612
Depreciation and
amortization expense 12,574 13,463 9,515 8,748 8,476
Gain on sale of
assets (16,054) (2,347) (16,407) (3) (1,776)
-------- -------- -------- -------- --------
Operating Income 73,114 52,391 46,822 34,436 39,168
Interest expense (7,023) (5,151) (935) (1,182) (1,809)
Interest income 469 385 296 296 451
Foreign currency gain
(loss) and other (714) 2,278 195 (150) (520)
-------- -------- -------- -------- --------
Income before income
taxes 65,846 49,903 46,378 33,400 37,290
Income tax benefit
(provision) (6,526) (4,484) 403 (1,136) (24,621)
-------- -------- -------- -------- --------
Net Income $ 59,320 $ 45,419 $ 46,781 $ 32,264 $ 12,669
======== ======== ======== ======== ========
Earnings per share:
Basic $ 2.39 $ 1.83 $ 2.06 $ 1.43 $ 0.56
Diluted $ 2.35 $ 1.78 $ 2.00 $ 1.40 $ 0.55
Weighted average
common shares 24,867 24,865 22,661 22,543 22,502
Weighted average
diluted common
shares 25,195 25,445 23,334 23,116 23,097
Operating Statistics
--------------------
Three Months Ended
------------------------------------------------
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
2008 2008 2008 2008 2007
-------- -------- -------- -------- --------
Revenue by Region
(000's)
-----------------
North Sea based
fleet $ 52,995 $ 59,169 $ 53,452 $ 60,508 $ 71,882
Southeast Asia based
fleet 20,354 21,094 20,175 16,228 13,154
Americas based fleet 48,534 44,353 8,266 6,612 6,419
Rates Per Day Worked
--------------------
North Sea based
fleet $ 21,176 $ 23,449 $ 21,766 $ 24,974 $ 28,324
Southeast Asia based
fleet 19,928 18,844 17,992 14,335 13,475
Americas based fleet 17,090 16,815 15,854 13,062 12,292
Overall Utilization
-------------------
North Sea based
fleet 96.8% 94.1% 95.3% 92.4% 93.0%
Southeast Asia based
fleet 99.2% 97.2% 86.6% 96.8% 93.2%
Americas based fleet 95.7% 93.9% 85.5% 88.0% 97.0%
Average Owned/
Chartered Vessels
------------------
North Sea based
fleet 26.3 27.0 27.0 28.3 29.0
Southeast Asia based
fleet 11.3 12.8 14.8 13.0 11.6
Americas based fleet 32.7 31.0 7.0 6.3 6.0
-------- -------- -------- -------- --------
Total 70.3 70.8 48.8 47.6 46.6
======== ======== ======== ======== ========
Drydock Days
------------
North Sea based
fleet 29 28 51 45 55
Southeast Asia based
fleet -- 5 21 13 28
Americas based fleet -- 55 84 37 --
-------- -------- -------- -------- --------
Total 29 88 156 95 83
======== ======== ======== ======== ========
Expenditures
(000's) $ 1,493 $ 3,504 $ 2,630 $ 3,692 $ 4,067
======== ======== ======== ======== ========
At February 20, 2009
----------------------
2009(2) 2010(2)
---------- ----------
Forward Contract Cover(1)
-------------------------
North Sea based fleet 71% 37%
Southeast Asia based fleet 67% 41%
Americas based fleet 60% 28%
---------- ----------
Total 65% 34%
========== ==========
(1) 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.
(2) Represents full calendar year.
Statement of Operations (unaudited)
-----------------------------------
Twelve Months Ended
--------------------------
December 31, December 31,
2008 2007
------------ ------------
Revenue $ 411,740 $ 306,026
Direct operating expenses 143,925 108,386
Drydock expense 11,319 12,606
General and administrative expenses 40,244 32,311
Depreciation and amortization expense 44,300 30,623
Gain on sale of assets (34,811) (12,169)
------------ ------------
Operating Income 206,763 134,269
Interest expense (14,291) (7,923)
Interest income 1,446 3,147
Foreign currency gain (loss) and other 1,609 (298)
------------ ------------
Income before income taxes 195,527 129,195
Income tax benefit (provision) (11,743) (30,220)
------------ ------------
Net Income $ 183,784 $ 98,975
============ ============
Earnings per share:
Basic $ 7.74 $ 4.41
Diluted $ 7.56 $ 4.29
Weighted average common shares 23,737 22,435
Weighted average diluted common shares 24,319 23,059
Operating Statistics
--------------------
Twelve Months Ended
--------------------------
December 31, December 31,
2008 2007
------------ ------------
Revenue by Region (000's)
-------------------------
North Sea based fleet $ 226,124 $ 241,664
Southeast Asia based fleet 77,851 41,257
Americas based fleet 107,765 23,105
Rates Per Day Worked
--------------------
North Sea based fleet $ 22,837 $ 24,120
Southeast Asia based fleet 17,723 10,276
Americas based fleet 16,567 11,386
Overall Utilization
-------------------
North Sea based fleet 94.6% 92.8%
Southeast Asia based fleet 94.5% 93.3%
Americas based fleet 93.4% 94.9%
Average Owned/Chartered Vessels
-------------------------------
North Sea based fleet 27.2 28.8
Southeast Asia based fleet 13.0 12.0
Americas based fleet 19.3 6.0
------------ ------------
Total 59.5 46.8
============ ============
Drydock Days
------------
North Sea based fleet 153 200
Southeast Asia based fleet 39 92
Americas based fleet 176 44
------------ ------------
Total 368 336
============ ============
Expenditures (000's) $ 11,319 $ 12,606
============ ============
Owned Vessels: Count by Reporting Segment
------------------------------------------
Southeast
North Sea Asia Americas Total
--------- --------- --------- ---------
Owned Vessels as of
September 30, 2008 27 11 32 70
--------- --------- --------- ---------
Newbuild Deliveries -- -- 2 2
Sales (1) -- -- (1)
Intersegment Transfers -- -- -- --
--------- --------- --------- ---------
Owned Vessels as of
February 23, 2009 26 11 34 71
Managed Vessels 17 2 5 24
--------- --------- --------- ---------
Total Fleet as of
February 23, 2009 43 13 39 95
========= ========= ========= =========
As of As of
December 31, December 31,
Balance Sheet Data (unaudited) ($000) 2008 2007
------------------------------------- ------------ ------------
Cash and cash equivalents $ 100,761 $ 40,119
Working capital 138,006 83,556
Vessel and equipment, net 1,035,436 641,333
Construction in progress 134,077 112,667
Total assets 1,556,967 934,012
Long term debt 462,941 159,558
Shareholders' equity 854,843 676,091
------------ ------------
Twelve Twelve
Months Ended Months Ended
December 31, December 31,
Cash Flow Data (unaudited) ($000) 2008 2007
--------------------------------- ------------ ------------
Cash flow from operating activities $ 205,201 $ 128,577
Cash flow used in investing activities (186,787) (175,383)
Cash flow used in financing activities 56,754 373
CONTACT: GulfMark Offshore, Inc.
James (Jay) Harkness, Vice President of Investor Relations
and Treasurer
(713) 963-9522
Jay.Harkness@GulfMark.com
Edward A. Guthrie, Executive Vice President & CFO
(713) 963-9522
Ed.Guthrie@GulfMark.com
|
| Symbol: |
GLF |
| Last Trade: |
28.010
(11/20/2009 ET)
|
| Change: |
-0.660
(-2.30%)
|
| Day's Range: |
27.57 -
28.57 |
| Open: |
28.35 |
| Previous Close: |
28.67 |
| TSO: |
25,839,000 |
| Market Cap: |
723.75M |
| Day's Volume: |
119,911 |
|
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