Thursday November 11, 10:30 am Eastern Time
Company Press Release
TransCoastal Announces Third Quarter 1999 Results
Consistent With Its October 8, 1999 Preannouncement
HOUSTON--(BUSINESS WIRE)--Nov. 11, 1999--TransCoastal Marine Services, Inc. (Nasdaq:TCMS - news) reported revenues of $25.7 million for the quarter ended September 30, 1999 compared to revenues of $44.9 million for the same quarter in 1998. The Company also reported a net loss for the quarter ended September 30, 1999 of $5.5 million or $0.49 per share. This compares to net income of $964,000 or $0.10 per share for the third quarter of 1998.
Results for the third quarter of 1999 include a special pretax charge of approximately $1.7 million related to severance costs for management reductions and expenses related to facilities reductions in the Company's Fabrication & Offshore Group. Third quarter results were also impacted by margin pressure due to highly competitive pricing. Revenues for the third quarter of 1999 were impacted by reduced activity from 1998 levels in the Fabrication & Offshore Group and the Pipeline & Marine Group.
For the nine months ended September 30, 1999, the Company reported revenues of $125.8 million which compares to revenues of $124.1 million for the same period in the prior year. The Company reported a net loss of $5.5 million for the nine months ended September 30, 1999 compared to net income of $4.0 million in the prior year.
The Company's Selling, General and Administrative Costs (SG&A) for the third quarter of 1999 decreased 31.5 percent compared to 1998 levels. For the nine months ended September 30, 1999, SG&A decreased 19.4 percent from the same period in the prior year.
TransCoastal Chairman, President and Chief Executive Officer, Nathan M. Avery said, ''Continued reductions in overhead costs at our operating units, particularly our Fabrication & Offshore Group, will allow us to realize higher margin levels with increased revenues. We continue to see increased bidding activity, but we believe actual contract awards may be deferred until the first quarter of 2000.'' He added, ''In the interim, we are continuing to pursue a large number of contract opportunities aggressively.''
Backlog at September 30, 1999 totaled $36.0 million and compares to backlog of $79.3 million for the same period in 1998. The 1998 backlog included approximately $31 million in revenues related to a Chevron contract in the Fabrication & Offshore Group. This contract encompassed 13 months and was completed in July 1999. Mr. Avery stated, ''Because our pipeline work tends to be of shorter duration, the majority of our backlog is composed of fabrication projects. In analyzing the quarter, we were very pleased to note that new orders in our Pipeline & Marine Group increased 59 percent over the previous sequential quarter.''
Transcoastal Marine Services, Inc., headquartered in Houston, is a marine construction company. The Company's Pipeline & Marine Group performs pipeline installation and repair worldwide. The Pipeline & Marine Group also provides construction support services, including hydrostatic testing and commissioning of pipelines. TransCoastal's Fabrication & Offshore Group fabricates, refurbishes and installs offshore drilling rigs, barge drilling rigs, production platforms and performs related fabrication services.
TABLE TO FOLLOW
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.
TRANSCOASTAL MARINE SERVICES, INC. AND SUBSIDIARIES
STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Nine Months
ended September 30, Ended September 30,
------------------- -------------------
1998 1999 1998 1999
-------- -------- -------- ---------
Revenues $44,912 $25,735 $124,081 $125,803
Costs and Expenses:
Cost of Revenues 37,207 25,642 98,493 111,930
Selling, General and
Administrative
Expenses 3,636 2,491 9,193 7,413
Special Charges --- 1,655 --- 1,655
Depreciation and
Amortization 2,403 3,587 7,086 10,337
-------- -------- -------- ---------
Operating Income 1,666 (7,640) 9,309 (5,532)
Interest Expense, net (1,194) (1,567) (2,856) (4,094)
Other Income (Expense), net (75) 60 (76) 412
-------- -------- -------- ---------
Income (Loss) Before
Income Taxes 397 (9,147) 6,377 (9,214)
Provision (Benefit) for
Income Taxes (567) (3,659) 2,423 (3,686)
-------- -------- -------- ---------
Net Income (Loss) $964 $(5,488) $3,954 $(5,528)
======== ======== ======== =========
Preferred Stock Dividends --- (2) --- (3)
-------- -------- -------- ---------
Net Income (Loss) Available
to Common Stockholders $964 $(5,490) $3,954 $(5,531)
======== ======== ======== =========
Comprehensive Income
(Loss), net of taxes:
Net Income (Loss) $964 $(5,488) $3,954 $(5,528)
Reclassification adjustment
for gains included in
net income (loss), net
of tax of $8 at
September 30, 1999 --- --- --- (18)
-------- -------- -------- ---------
Comprehensive Income (Loss) $964 $(5,488) $3,954 $(5,546)
======== ======== ======== =========
EPS:
Basic EPS $0.10 $(0.49) $0.43 $(0.51)
======== ======== ======== =========
Diluted EPS $0.10 $(0.49) $0.43 $(0.51)
======== ======== ======== =========
Shares used in computing EPS:
Basic EPS 9,572 11,248 9,291 10,832
======== ======== ======== =========
Diluted EPS 9,572 11,248 9,291 10,832
======== ======== ======== =========
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Contact:
TransCoastal Marine Services Inc., Houston
Pamela L. Reiland, 713/626-8899 |
