EPS Expected to Meet or Slightly Exceed Second Quarter
Estimates, Fall Short for the Year
HOUSTON--(BUSINESS WIRE)--June 22, 1998--TransCoastal Marine Services Inc. (Nasdaq:TCMS - news)
has estimated that its second quarter earnings will meet or slightly exceed analysts' estimates of $0.29 per
share. The Company also announced that it anticipates that net income for the first half of 1998 is expected to
be 55 to 65 percent above the pro forma combined unaudited results reported for the comparable period in
1997.
''Good productivity, reduced costs on certain construction projects and favorable weather conditions all are
contributing positively to our performance,'' said Bill E. Stallworth, TransCoastal chairman and chief executive
officer.
At the same time, the Company announced that the continuing slump in oil prices is reducing pipeline
contracting activity, which could affect the Company's results for the remainder of the year. Based on current
market conditions, TransCoastal estimates that net income could range from 35 to 40 percent below the
current consensus estimate of $1 per share for the full year 1998. ''Although three major pipeline projects are
contributing to our strong second quarter, two of those jobs are to be completed by the end of July, and we
anticipate that available bidding for additional transition zone trunklines in the Gulf of Mexico will be significantly
reduced for the rest of the year,'' said Stallworth. ''While fabrication work remains strong, and there still is a
reasonable level of bid activity for pipeline and offshore work, most of those bids are for smaller projects that
typically have lower profit margins.''
''A major uncertainty we face today is the unknown length of the current oil price slump and the impact that it
will have on contract opportunities,'' said Stallworth. ''However, over the longer term, we see strong
opportunities for work in the Gulf of Mexico and internationally.''
In that regard, TransCoastal also announced today that it expects to reach an agreement for its recently
acquired pipelay barge, the ''Vermilion Bay'', to go to Mexico, where it will begin work for a major Mexican
contractor under a contract for 200 days, plus options for additional time.
''We're pleased to put the ''Vermilion Bay'' on a job that will generate roughly $4 million in cash flow during the
initial contract period that includes the upcoming winter months, which typically are a slow season in our
business,'' said Stallworth.
TransCoastal Marine Services Inc., headquartered in Houston, is a marine construction company. Its services
include pipeline installation and repair, primarily in the transition zone and shallow-water regions along the U.S.
Gulf Coast. For all water depths, the company performs hydrostatic testing and commissioning of pipelines,
plus fabrication and refurbishment of offshore drilling rigs, barge drilling rigs and structural components of fixed
platforms.
This press release contains forward-looking statements concerning results of operations, profitability of the
company, and marketplace trends. These statements are based on many assumptions and other factors,
including dependence on the cyclical oil and gas industry, competitive pricing, and the performance of
fixed-price contracts. Many of these factors are discussed in the Annual Report on Form 10-K for the year
ended December 31, 1997, and the Quarterly Report on Form 10-Q for the three months ended March 31,
1998. Any changes in such assumptions or factors could produce materially different results.
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