BW0140 Aug 11, 1999 07:00 PACIFIC 10:00 EASTERN
( BW)(TX-TRANSCOASTAL-MARINE)(TCMS) TransCoastal Announces Second
Quarter 1999 Results
Business/Energy Editors
HOUSTON--(BUSINESS WIRE)--Aug. 11, 1999--TransCoastal Marine
Services Inc. (Nasdaq:TCMS) reported revenues of $55.0 million for
the quarter ended June 30, 1999, an increase of 13.7 percent over 1998
second quarter revenues of $48.4 million. The Company also reported
net income for the quarter ended June 30, 1999 of $72,000 or $.01 per
share. This compares to net income of $2.7 million or $.30 per share
for the second quarter of 1998.
For the six months ended June 30, 1999, the Company reported
revenues of $100.1 million, an increase of 26.4 percent over the $79.2
million in revenues for the same period in the prior year. The Company
reported a net loss of $40,000 for the six months ended June 30, 1999
compared to net income of $3.0 million in the prior year.
The Company's Selling, General and Administrative Costs (SG&A)
decreased to 4.5 percent of revenues for the second quarter of 1999 as
compared to 5.6 percent of revenues for the similar period in 1998.
For the six months ended June 30, 1999, SG&A was 4.9 percent of
revenues compared to 7.0 percent in the prior year.
EBITDA for the three months ended June 30, 1999 was $4.7 million
compared to $8.8 million for the prior year. For the six months ended
June 30, 1999, EBITDA totaled $8.9 million as compared to $12.3
million for the same period in the prior year.
TransCoastal Chairman, President and Chief Executive Officer,
Nathan M. Avery said, "In view of current market conditions, we are
pleased to report a modest profit this quarter." He added, "While our
revenue base has increased this year, margins have been impacted by
very competitive pricing in the pipeline market and by a higher
percentage of fabrication work in our total revenues."
Mr. Avery also noted, "We continue to work on cost and overhead
reductions as evidenced by the decreases in SG&A expense and the
reduction in these expenses as a percent of revenues. We expect this
operating leverage to result in increased profitability when market
conditions improve. Additionally, the completion of the refurbishment
of the 'Atchafalaya Bay' reduces our future cash requirements for
capital expenditures."
Backlog at June 30, 1999 totaled $42.3 million and compares to
backlog of $10.2 million for the same period in 1998. Mr. Avery
stated, "The increase in our backlog is attributable to increases in
fabrication projects. While we are hopeful that the recent improvement
in oil and gas prices will positively affect demand in our pipeline
segment, we have not yet experienced an increase in contract activity
in that area of our business."
Transcoastal Marine Services Inc., headquartered in Houston, is a
marine construction company. The Company's Pipeline and Marine Group
performs pipeline installation and repair worldwide. The Pipeline and
Marine Group also provides construction support services, including
hydrostatic testing and commissioning of pipelines. TransCoastal's
Fabrication and Offshore Group fabricates, refurbishes and installs
offshore drilling rigs, barge drilling rigs, production platforms and
performs related fabrication services.
This press release may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
These statements are based on current plans and expectations of
TransCoastal Marine Services Inc. and involve risks and uncertainties
that could cause actual future activities and financial results to be
materially different from those set forth in the forward-looking
statements. Important factors that could cause actual results to
differ include, among others, risks associated with acquisitions,
fluctuations in operating results because of acquisitions and
variations in stock prices, competition, and risks of operations and
integration of the newly acquired businesses, as well as other risks
detailed from time to time in the reports filed by the Company with
the Securities and Exchange Commission.
TABLE TO FOLLOW
*T
TRANSCOASTAL MARINE SERVICES INC. AND SUBSIDIARIES
STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Six Months
ended June 30, ended June 30,
-------------------- ------------------
1998 1999 1998 1999
--------- --------- -------- --------
Revenues $48,391 $55,031 $79,169 $100,068
Costs and Expenses:
Cost of Revenues 36,904 47,826 61,285 86,288
Selling, General and
Administrative
Expenses 2,710 2,488 5,558 4,922
Depreciation and
Amortization 2,426 3,549 4,682 6,750
--------- --------- -------- --------
Operating Income 6,351 1,168 7,644 2,108
Interest Expense, net (824) (1,303) (1,663) (2,527)
Other Income (Expense),
net (48) 255 (1) 352
--------- --------- -------- --------
Income (Loss) Before
Income Taxes 5,479 120 5,980 (67)
Provision (Benefit)
for Income Taxes 2,765 48 2,990 (27)
--------- --------- -------- --------
Net Income (Loss) $2,714 $72 $2,990 $(40)
========= ========= ======== ========
Preferred Stock
Dividends -- (1) -- (1)
Net Income (Loss)
Available to
Common Stockholders $2,714 $71 $2,990 $(41)
========= ========= ======== ========
EPS:
Basic EPS $0.30 $0.01 $0.33 $0.00
========= ========= ======== ========
Diluted EPS $0.30 $0.01 $0.33 $0.00
========= ========= ======== ========
Shares used in
computing EPS:
Basic EPS 9,148 10,791 9,148 10,621
========= ========= ======== ========
Diluted EPS 9,157 11,152 9,162 10,621
========= ========= ======== ========
*T
--30--SCP/ho* MJB/ho
CONTACT: TransCoastal Marine Services Inc., Houston
Pamela L. Reiland, 713/626-8899
KEYWORD: TEXAS
INDUSTRY KEYWORD: OIL/GAS ENERGY EARNING
REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or
800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473
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