Trico Marine Reports Second Quarter 1999 Results
HOUSTON, July 30 /PRNewswire/ -- Trico Marine Services, Inc.
(Nasdaq: TMAR) today reported a net loss for the second quarter ended
June 30, 1999, of $9.0 million, or $0.39 per diluted share, before an
extraordinary one-time charge of $1.8 million, net of taxes, related to the
write-off of unamortized debt issuance costs resulting from the prepayment of
bank debt with the proceeds of a new bank revolving credit agreement. After
the extraordinary charge, the net loss was $10.8 million, or $0.47 per diluted
share. This compares to net income of $11.7 million, or $0.56 per diluted
share, for the second quarter of 1998. Second quarter 1999 revenues were
$26.7 million compared to $52.9 million last year.
Upon completion of the previously announced $50 million private placement
of equity, the Company closed a new bank revolving facility, which refinanced
and replaced its previous credit facility. In connection with the early
prepayment of its bank debt, the Company recognized the extraordinary, non-
cash charge, of $1.8 million. The net loss for the period also included an
additional non-cash charge of $1.1 million related to the write-down of the
book value of an inactive vessel. This vessel, which was included as part of
a larger acquisition, has never been activated by the Company, and the Company
has determined it is uneconomic to refurbish and activate this vessel.
For the first six months of 1999, the net loss before extraordinary item
was $16.3 million, or $0.75 per diluted share, on revenues of $55.0 million.
After the extraordinary charge, the net loss was $18.2 million, or $0.84 per
diluted share. This compares to net income of $21.6 million, or $1.02 per
diluted share, on revenues of $101.8 million for the first six months of 1998.
Trico's net loss for the second quarter resulted from decreases in average
day rates for all classes of the Company's vessels. Supply boat day rates in
the Gulf of Mexico averaged $3,123 for the quarter, compared to $8,065 for the
same period last year, and $3,662 for the first quarter of 1999. Average day
rates for the North Sea fleet were also lower, at $10,093 for the second
quarter, compared to $15,142 for the second quarter of 1998 and $11,451 for
the first quarter 1999. Day rates for lift boats in the Gulf of Mexico
averaged $4,016 in the second quarter of 1999 compared to $6,072 last year.
Second quarter results were also affected by an unusually high level of
vessel downtime and repair and maintenance expenses for several of Trico's
larger vessels, which normally earn higher day rates. Additionally, the
Company experienced delays in shipyard deliveries for two new vessels -- one
in the North Sea and one in the Gulf of Mexico -- which had been expected to
contribute to second quarter results.
The utilization rate for Trico's Gulf of Mexico supply boats was 52% for
the second quarter 1999, compared to 70% for the year-ago period. Dry-docking
and vessel refurbishment impacted the Company's supply boat utilization rates
for both periods, and deactivation, or stacking, of 10 supply boats impacted
1999 utilization. Utilization of the North Sea vessels was 95% in the second
quarter, compared to 96% in the same period last year, and lift boat
utilization was 47%, compared to 54% in the second quarter 1998.
"While we have begun to see signs of improved market conditions in the
Gulf of Mexico, the second quarter was characterized by overall market
weakness, which resulted in further decreases in average day rates for both
the Gulf and North Sea fleets," said Thomas E. Fairley, president and chief
executive officer. "Utilization of our Gulf supply boats also includes
downtime on several vessels that are undergoing dry-docking and 10 vessels
that we elected to stack."
Fairley added that he expects Trico's future results to benefit from the
addition of two new vessels to its fleet during the third quarter. In July,
the Hondo River, the second of two 230-foot, deepwater supply vessels, began
operations in the Gulf of Mexico. Also in mid-July, the Northern Admiral, a
275-foot, multi-purpose anchor handling, towing and supply vessel, was placed
into service in Norway. |
