Global Industries, Ltd. Announces Earnings for the Quarter and the Nine-Month Transitional Period Ended December 31, 1998
LAFAYETTE, La.--(BUSINESS WIRE)--Feb. 10, 1999--Global Industries, Ltd. (Nasdaq: GLBL - news) announced net income of $11.8 million or $0.13 per diluted share for the quarter ended December 31, 1998, which is 30% lower than the net income of $16.9 million or $0.18 per diluted share for the quarter ended December 31, 1997. Revenues of $129.5 million for quarter ended December 31, 1998 were 8% higher than the $120.4 million reported for the same period last year.
Effective December 31, 1998 Global changed its fiscal year end to December 31 to report its annual results on a comparable basis with other public companies in the offshore construction industry. For the nine months ended December 31, 1998, net income was $39.0 million, or $0.42 per diluted share, compared to $46.3 million or $0.49 per diluted share for the nine months ended December 31, 1997. Revenues for the nine months ended December 31, 1998 were $342.2 million compared to $292.4 million for the nine months ended December 31, 1997.
Equity in the net loss of our unconsolidated affiliate was $4.0 million and $6.9 million for the quarter and nine months ended December 31, 1998, respectively, compared to equity in net income of $1.3 million and an equity in net loss of $0.9 million for the same periods last year.
Effective April 1, 1998 Global also adopted FASB Statement No. 131 relating to disclosures about operating segments of an enterprise.
Global Chairman and Chief Executive Officer William J. Dore' stated: ''Overall earnings from consolidated operations for this quarter were as expected. Increased revenues from our international operations more than offset the 29% decrease we experienced in domestic revenues but the additional revenues were insufficient to compensate for lower domestic margins. Increased selling, general and administrative expense and increased interest expense reflect our expansion into international markets and the Company's debt level''.
Mr. Dore' also said: ''Depressed prices continue to negatively impact oil and gas activity in the Gulf of Mexico and international regions where Global Industries operates. These conditions have caused a decrease in the demand for services across all sectors of the industry. Consequently, competition for available offshore construction projects in shallow and intermediate waters continues to drive margins lower.''
Global Industries provides pipeline construction, platform installation and removal, diving services, and other marine support to the oil and gas industry in the Gulf of Mexico, West Africa, Asia Pacific, Middle East/India and Mexico's Bay of Campeche. The Company's shares are traded on the NASDAQ National Market System under the symbol ''GLBL''.
Results of Operations
(In thousands, except shares
and per share amounts)
Three Months Three Months
Ended Ended
Dec. 31, 1998 Dec. 31, 1997
----------- -----------
Revenues $ 129,468 $ 120,435
----------- -----------
Gross profit 34,485 32,217
Equity in net earnings (loss) of
unconsolidated affiliate (3,999) 1,273
Selling, general, and
administrative expenses 8,277 6,212
----------- -----------
Operating income $ 22,209 $ 27,278
----------- -----------
Interest expense 2,771 965
Other expense (income) 1,216 (892)
Income taxes 6,377 10,338
=========== ===========
Net income $ 11,845 $ 16,867
=========== ===========
Average shares
--------------------------------
Basic 91,170,000 91,237,000
Diluted 92,540,000 94,042,000
Net income per share
--------------------------------
Basic $ 0.13 $ 0.18
Diluted 0.13 0.18
Other data
--------------------------------
Depreciation and amortization $ 12,993 $ 8,722
Deferred income taxes 6,633 4,000
Backlog 115,955 93,100
Results of Operations
(In thousands, except shares
and per share amounts)
Nine Months Twelve Months Nine Months
Ended Ended Ended
Dec. 31, Mar. 31, Dec. 31,
1998 1998 1997
------------------------------------
Revenues $ 342,201 $ 379,901 $ 292,383
--------- --------- ---------
Gross profit 95,973 114,656 90,913
Equity in net earnings (loss)
of unconsolidated affiliate (6,890) (1,654) (854)
Selling, general, and
administrative expenses 21,720 22,492 16,907
--------- --------- ---------
Operating income $ 67,363 $ 90,510 $ 73,152
--------- --------- ---------
Interest expense 6,744 2,245 1,459
Other expense (income) 665 (3,420) (3,018)
Income taxes 20,983 34,382 28,390
--------- --------- ---------
Net income $ 38,971 $ 57,303 $ 46,321
========= ========= =========
Average shares
----------------------------------
Basic 91,498,000 91,110,000 90,981,000
Diluted 93,808,000 93,872,000 93,682,000
Net income per share
---------------------------------- ------------
Basic $ 0.43 $ 0.63 $ 0.51
Diluted 0.42 0.61 0.49
Other data
---------------------------------- ------------
Depreciation and amortization $ 35,602 $ 29,576 $ 21,941
Deferred income taxes 13,044 14,873 8,000
Reportable Segments
Revenues
U.S. Gulf of Mexico
offshore construction $ 135,871 $ 221,710 $ 180,947
U.S. Gulf of Mexico diving 42,081 62,495 46,497
U.S. Gulf of Mexico marine support 31,464 51,542 39,768
West Africa 70,693 28,983 12,425
Asia Pacific 38,015 30,289 25,287
Other 50,880 30,058 19,283
Intersegment eliminations (26,803) (45,176) (31,824)
--------- --------- ---------
$ 342,201 $ 379,901 $ 292,383
========= ========= =========
Income before income taxes
U.S. Gulf of Mexico offshore
construction $ 26,195 $ 44,230 $ 44,099
U.S. Gulf of Mexico diving 13,498 24,404 18,812
U.S. Gulf of Mexico marine support 10,235 19,443 15,285
West Africa 11,923 3,712 (2,396)
Asia Pacific 3,427 197 (400)
Other (5,324) (301) (689)
--------- --------- ---------
$ 59,954 $ 91,685 $ 74,711
========= ========= =========
Selected Balance Sheet amounts Dec. 31, 1998 March 31, 1998
-------------------------------- ------------- --------------
Cash $ 25,368 $ 18,693
Working capital 78,637 77,472
Total assets 730,871 625,367
Long-term debt 210,797 146,993
Shareholders' equity 397,528 368,933
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This press release may contain forward-looking information based on current information and expectations of the Company that involve a number of risks, uncertainties, and assumptions. Among the factors that could cause the actual results to differ materially are: industry conditions, prices of crude oil and natural gas, the Company's ability to obtain and the timing of new projects, and changes in competitive factors. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual outcomes could vary materially from those indicated.
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