Trico Marine Reports Full Year 1999 and Fourth Quarter Earnings
HOUSTON, Feb. 16 /PRNewswire/ --
Trico Marine Services, Inc. (Nasdaq: TMAR) today announced a net loss for the
fourth quarter ended December 31, 1999 of $7.4 million, or $0.26 per share
(diluted), on revenues of $28.2 million. This compares to net income of
$1.1 million, or $0.05 per share (diluted), on revenues of $41.4 million, for
the fourth quarter last year.
For the full year ended December 31, 1999, the net loss was
$33.4 million, or $1.33 per share (diluted), on revenues of $110.8 million,
compared to net income of approximately $25.3 million, or $1.20 per share
(diluted), on revenues of $186.2 million for 1998. The net loss for 1999
includes an extraordinary one-time charge of $1.8 million, net of taxes,
recorded in the second quarter, related to the write-off of unamortized debt
issuance costs resulting from the prepayment of bank debt. The net loss for
1999 also includes a non-cash charge of $1.1 million in the second quarter
related to the write-down of the book value of an inactive vessel.
The decrease in revenues for 1999 and the fourth quarter was due to
decreased day rates for the Company's vessel fleet compared to the year-ago
periods. However, average day rates for the Company's U.S. Gulf fleet
increased modestly in the fourth quarter compared to the third quarter of
1999. Day rates for Gulf supply boats averaged $3,250 in the fourth quarter
1999, compared to $3,143 in the 1999 third quarter and $4,341 in the fourth
quarter last year. North Sea day rates averaged $8,761 compared to an average
of $9,998 for the 1999 third quarter and $15,674 for the 1998 fourth quarter.
Utilization for Trico's Gulf supply boat fleet increased to 67% for the
quarter, up from 57% for both the third quarter of 1999 and the fourth quarter
of 1998. Utilization increased in the 1999 fourth quarter due to improved
market conditions in the Gulf and the reduction of vessel downtime for
dry-docking and refurbishment. Utilization for the fourth quarter of 1999 was
74% for the Company's North Sea fleet compared to 96% for the 1998 fourth
quarter. During the 1999 fourth quarter, the Company dry-docked two of its
anchor handling/towing supply vessels and elected to de-activate three of its
platform supply vessels in the North Sea.
Direct vessel operating expenses decreased in 1999 compared to 1998 due to
cost reduction measures and the de-activation of 10 supply vessels in the Gulf
and three platform supply vessels in the North Sea. In the fourth quarter and
full year 1999, the Company incurred higher depreciation and amortization
expense due to the expanded vessel fleet, and the amortization of dry-docking
and refurbishment costs, most of which were incurred in 1997 and 1998. The
Company's interest expense increased for the fourth quarter and full year 1999
due to increased borrowings that were used to fund vessel construction and
upgrade projects and working capital, higher average interest rates and
interest capitalized in 1998 because of various vessel construction projects.
"In spite of the disappointing results achieved in 1999, we are encouraged
by the improvement in oil and gas prices, which historically has lead to
increased demand for marine support services," said Thomas E. Fairley,
president and chief executive officer. "While our recent operating results
have improved in the Gulf of Mexico, we continue to experience weak market
conditions in the North Sea. Over the next few months, we expect to relocate
some of our North Sea vessels to other international areas where we believe we
will experience higher levels of demand in 2000." Fairley also noted that
Trico has completed all of its vessel construction and refurbishment projects,
including the addition of three new vessels during 1999. Mr. Fairley
continued, "As a result, our capital expenditures will be limited to
regulatory-mandated vessel dry-dockings in 2000. We also intend to take steps
that will improve our present limited financial flexibility and position us to
take advantage of opportunities that we believe exist in our targeted market
areas," he said. |
