Hvide Marine Reports 65% Increase in Second Quarter Earnings Despite Recent Weakness in Gulf of Mexico Supply Boat Market
FORT LAUDERDALE, Fla., July 30 /PRNewswire/ -- Hvide Marine Incorporated (Nasdaq: HMAR - news) today reported second quarter 1998 net income of $9.5 million or $0.55 per diluted share, up 65% and 49%, respectively, from $5.7 million and $0.37 before an extraordinary item in the year-earlier period. Net income for the 1998 quarter included $0.04 per diluted share from changes in the estimated lives of certain of the Company's offshore assets. Revenues of $109.3 million for the 1998 quarter were more than double those of a year ago, reflecting the rapid expansion of the Company's fleet, particularly in the international arena, and improved results in each of the Company's four business segments.
Income from operations grew two-and-a-half times to $28.1 million or 26% of revenues versus $11.0 million or 24% of revenues in the year-earlier period.
''Although we had another good quarter, results were affected by the softening of the U.S. Gulf of Mexico market, which started in June due to the protracted decline in crude oil prices,'' commented J. Erik Hvide, Chairman, President and CEO. ''The falloff in the Gulf has been significant through July, and will likely continue until oil prices improve. While supply boat day rates in the Gulf of Mexico averaged $8,214 during the second quarter versus $7,176 a year ago, they are currently in the $6,000 a day range for the standard 180-foot vessel.''
Day rates for the Company's 40 Gulf of Mexico crewboats have remained firm and were up 28% from a year ago to $2,477 in the 1998 quarter.
Day rates continue to improve in each of the Company's major international operating regions -- West Africa, the Middle East, Southwest Asia and Southeast Asia. International operations account for a larger portion of the Company's business than in the past and are expected to continue to grow in the future.
In offshore and harbor towing, where Hvide took delivery of four new tractor tugs during the quarter, including two of the Company's patented Ship Docking Modules(TM), revenues grew two-and-a-half times to $11.8 million. Similarly, revenues from petroleum product transportation, which had two additional product tankers in operation compared to a year ago, grew 168% to $11.4 million, while the Company's chemical transportation sector registered a 35% increase to $18.6 million.
For the six months ended June 30, 1998, revenues of $195.8 million were up 128% from $85.9 million a year ago. Income from operations grew 135% to $48.7 million from $20.7 million. Income before an extraordinary item totaled $16.7 million or $0.97 per diluted share versus $10.3 million or $0.71 per diluted share in the 1997 period, gains of 62% and 37%, respectively.
In the 1998 second quarter, the Company conducted a global review of its vessels and equipment, as a result of which it revised the estimated useful lives of certain assets, primarily international offshore assets acquired in 1997 and 1998. The results ensure consistent application of policies throughout the Company's worldwide operations and, additionally, more closely align them with industry practice. The effect of the review was to reduce the charge for depreciation and amortization, thereby increasing second quarter earnings by $0.7 million or $0.04 per diluted share.
Based in Port Everglades, Florida, Hvide Marine (pronounced ''VEE-dah'') is one of the world's leading providers of marine support and transportation services with a growing fleet of 273 vessels in two core businesses:
-- Marine Support Services (239 vessels), primarily in the offshore energy
industry, in which Hvide's Seabulk Offshore subsidiary is the world's
third largest operator of oilfield support vessels; and offshore and
harbor towing, which includes harbor tug operations in Tampa Bay, Port
Everglades and Port Canaveral, Florida; Mobile Bay, Alabama; Lake
Charles, Louisiana and Port Arthur, Texas; and
-- Marine Transportation Services (34 vessels), in which Hvide is a leader
in the domestic chemical transportation trade and has a significant
position in petroleum product transportation.
HVIDE MARINE INCORPORATED
Highlights of Operations (Unaudited)
($ millions except per share)
Three Months Ended Six Months Ended
June 30 June 30
1998 1997 1998 1997
Revenue $ 109.3 $ 46.3 $ 195.8 $ 85.9
Income from Operations 28.1 11.0 48.7 20.7
Income before Extraordinary
Item 9.5 5.7 16.7 10.3
Income Per Share before
Extraordinary Item (a) 0.55 0.37 0.97 0.71
Loss on Early Extinguishment
of Debt -- (0.4) (0.7) (2.1)
Net Income 9.5 5.3 16.0 8.2
Net Income Per Share 0.55 0.35 0.93 0.57
EBITDA (b) 40.4 15.2 72.6 28.6
Average Shares
Outstanding 19,473,825 15,492,326 19,503,276 14,606,607
(a) All per share and share amounts are stated on a diluted basis.
(b) EBITDA is defined as net income from continuing operations before
interest expense, income tax expense, depreciation expense,
amortization expense, minority interest and other non-operating
income.
SOURCE: Hvide Marine Incorporated
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