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To: WWS who wrote (671)	4/23/2001 8:26:00 PM
From: ldo79	Respond to of 206328

HOFF reports: Horizon Offshore Reports First Quarter Earnings HOUSTON, April 23 /PRNewswire Interactive News Release/ -- Horizon Offshore, Inc. (Nasdaq: HOFF - news) today reported first quarter net income of $2.7 million or $0.12 per share-diluted before an extraordinary charge of $0.6 million net of tax, compared with a net loss of $0.3 million or $0.02 per share-diluted, for the first quarter of 2000. For the first quarter of 2001, Horizon reported gross profit of $9.5 million, or 17.6 percent, on contract revenues of $54.1 million, compared with gross profit of $1.1 million, or 7.1 percent, on contract revenues of $15.9 million last year. Pre-tax net income of $4.2 million and an income tax provision of $1.5 million were recorded for the first quarter of 2001, compared with a pre-tax net loss of $2.6 million and income tax benefit of $0.9 million in the first quarter of 2000. In February 2001, Horizon sold 3,800,000 shares of common stock in a secondary offering and received $66.3 million after deducting the underwriting discount and expenses. The Company used $30.0 million to reduce indebtedness and plans to use $10.0 million to support a deep water joint venture with Cal Dive. The remainder will be used for general corporate purposes, including funding capital expenditures to expand our operating capabilities and potential vessel acquisitions. The repayment of $30.0 million of debt resulted in a $0.9 million ($0.6 million net-of-tax) extraordinary charge for the early extinguishments of debt. In March 2001, Horizon also replaced its revolving credit facility with Wells Fargo Bank by entering into a revolving line of credit with a syndicate agented by Southwest Bank of Texas. This resulted in a non-cash write-off of $0.2 million recorded as interest expense. ``We are pleased with the results for the first quarter, which reflect the strong performance of our offshore and onshore personnel worldwide and the execution of our project management in an extremely competitive environment,'' said Bill J. Lam, president and chief executive officer. ``Key industry fundamentals such as jack-up drilling rig utilization, natural gas prices, and increased capital spending by oil and gas companies continue to support what we believe will be a strong second half of 2001, that we also expect to carry through into 2002. We have positioned Horizon to participate in the deep water market segments by forming a joint venture with Cal Dive International, Inc. that will conduct deepwater reel pipelaying projects in the U.S. Gulf of Mexico. Reel pipelaying operations will create a new revenue base for Horizon in the deepwater market segments, further broadening our range of services. The recent central Gulf of Mexico lease sale was held in March and showed a high level of interest by oil and gas companies, especially in the shallow water segment. We are well positioned to take advantage of the increasing activity in the shallow water market of the Gulf of Mexico,'' added Lam. biz.yahoo.com Regards, ldo79