Friede Goldman International Reports $0.37 for Third Quarter
JACKSON, Miss.--(BUSINESS WIRE)--Oct. 26, 1998--Friede Goldman
International Inc. (NASDAQ: FGII) reported today earnings of $0.37 per
share (diluted) for the third quarter ended October 4, 1998, up from
$0.23 per share for the same quarter of 1997.
Revenues for the third quarter of 1998 were $92.7 million and
operating income was $14.2 million compared to $34.6 million and $8.5
million, respectively, for the third quarter of 1997, representing
increases of 167% and 67%, respectively. Net income for the third
quarter of 1998 was $9.0 million compared to net income of $5.5
million for the third quarter of 1997.
Revenues and operating income for the nine months ended October
4, 1998, were $250.0 million and $37.9 million, respectively, compared
to $80.2 million and $18.5 million, respectively, for the first nine
months of 1997. Net income for the nine months ended October 4, 1998,
was $23.4 million ($0.95 per share) compared to pro forma net income
for the nine months ended September 30, 1997, of $14.5 million ($0.72
per share).
The company also reported a backlog, consisting primarily of
deepwater projects, of $456 million at the end of the third quarter
compared to $132 million at the same time in 1997.
J.L. Holloway, chairman and CEO of FGII, said, "We are pleased
with the continued increases in revenues and earnings in the third
quarter. In fact, all of our operating units were profitable during
the quarter. These increases are particularly encouraging because of
the interruptions in production our Pascagoula yards experienced due
to Hurricane Georges and two other threatened storms. Our backlog
remains strong at more than $450 million, and we are continuing to see
opportunities for new projects."
Holloway continued, "Even so, we remain cautious concerning the
current status of the energy related markets and worldwide oil prices
and the effect that they have on our business."
The company also announced that as of October 23, 1998, the
company had repurchased 1,188,900 shares of its common stock under its
previously announced stock repurchase program.
Friede Goldman International Inc. is a leading provider of
offshore drilling services, including design, engineering, new
construction, repair, retrofit, and conversion. FGII operates the
engineering and design firm Friede & Goldman, Ltd., and four shipyards
in the U.S. and Canada through its subsidiaries HAM Marine, Friede
Goldman Offshore, and Friede Goldman Newfoundland. The company also
designs, manufactures, and markets equipment for the worldwide
offshore industry through its subsidiary Brissonneau & Lotz Marine.
The company's outstanding Common Stock is traded on the NASDAQ
National Market under the symbol "FGII".
Friede Goldman International Inc. Summary Results of Operations
(In thousands, except per share amounts)
Three months ended Nine months ended
Sept. 30, Oct. 4, Sept. 30, Oct. 4,
1997 1998 1997 1998
Revenue $34,629 $92,670 $80,152 $250,018
Gross Profit $11,411 $21,918 $27,510 $61,445
Operating Income $ 8,547 $14,236 $18,526 $37,939
Income before tax $ 8,945 $14,068 $23,225 $37,864
Net Income $ 5,475 $ 8,977 $18,505 $23,362
Pro forma net income $ 5,475 $ 8,977 $14,525 $23,362
Earnings per share
Basic $0.24 $0.37 $0.93 $0.96
Diluted $0.23 $0.37 $0.92 $0.95
Pro forma earnings
per share
Basic $0.24 $0.37 $0.73 $0.96
Diluted $0.23 $0.37 $0.72 $0.95
Weighted average shares
outstanding
Basic 22,969,054 24,077,815 19,939,754 24,342,842
Diluted 23,305,161 24,394,596 20,053,021 24,719,383
EBITDA $ 9,077 $15,725 $20,098 $42,400
deemed to be "forward-looking statements" within the meaning of
Section 27A of The Securities Act of 1933, as amended, and Section 21
E of the Securities Exchange Act of 1934, as amended. All statements,
other than statements of historical facts, included in this press
release that address activities, events or developments that Friede
Goldman International Inc. expects, believes or anticipates will or
may occur in the future, are forward-looking statements. These
statements are based on certain assumptions and analyses made by
Friede Goldman International Inc. in light of its experience and its
perception of historical trends, current conditions, expected future
developments and other factors it believes are appropriate in the
circumstances. Such statements are subject to a number of assumptions,
risks and uncertainties, many of which are beyond the control of
Friede Goldman International Inc. and which are discussed in Friede
Goldman International Inc.'s Registration Statement on Form S-1 and
the Annual Report on Form 10-K. Investors are cautioned that any such
statements are not guarantees of future performance and that actual
results or developments may differ materially from those projected in
the forward-looking statements.
CONTACT:
Friede Goldman International
Julia Brewer or Jobie T. Melton, 601/352-1107,
601/352-0588 (fax)
KEYWORD: MISSISSIPPI
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