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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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Form 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of Earliest Event Reported): May 4, 1999
GulfMark Offshore, Inc.
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(Exact Name of Registrant as Specified in its Charter)
Delaware
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(State or Other Jurisdiction of Incorporation)
000-22853 76-0526032
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(Commission File Number) (I.R.S. Employer Identification No.)
5 Post Oak Park, Suite 1170, Houston, Texas 77027
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(Address of Principal Executive Offices) (Zip Code)
(713)963-9522
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(Registrant's Telephone Number, Including Area Code)
N/A
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(Former Name or Former Address, if Changed Since Last Report)
(Exhibit Index Located on Page 3)
1
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ITEM 5. OTHER EVENTS
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On May 4, 1999, GulfMark Offshore, Inc. (NASDAQ: GMRK) announced net
earnings for the quarter ended March 31, 1999. Additional information is
included in the Company's press release dated May 4, 1999, which is attached
hereto as Exhibit 99.1
(b) Exhibits.
Exhibit No. Description
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99.1 Press Release dated May 4, 1999
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GulfMark Offshore, Inc.
Date: May 4, 1999 By: /s/ Kevin D. Mitchell
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Controller
2
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EXHIBIT INDEX
Exhibit No. Description
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99.1 Press Release dated May 4, 1999
3
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PRESS RELEASE
FOR IMMEDIATE RELEASE
May 4, 1999 - Houston - GulfMark Offshore, Inc. (NASDAQ:GMRK) today
announced net earnings for the quarter ended March 31, 1999 of $2.9
million or $0.35 per diluted share on revenues of $21.1 million. Net
earnings in the comparable 1998 quarter were $3.5 million or $0.42 per
diluted share on revenues of $16.0 million.
Revenues increased in the North Sea by $5.3 million largely due to
the addition of several vessels during the course of 1998. The Company
added five vessels in February 1998 with the acquisition of Brovig
Supply ASA. Additionally, the Company took delivery of two newbuild
vessels, the Highland Rover (March 1998) and the Highland Spirit
(November 1998). Revenues in the region also benefited from the
addition of two vessels bareboat chartered by the Company during 1998.
The addition of the new, highly specialized vessels, coupled with
existing contracts resulted in a slight increase in the average dayrate
for North Sea capable vessels. The increased dayrates on these vessels
offset the otherwise deteriorating chartering market which has been
adversely impacted by low oil prices and resultant reduction in
exploration and development activity. Outside of the North Sea, lower
utilization and a reduction in the number of the Company's vessels
operating in Southeast Asia resulted in decreased revenue which was
largely offset by the addition of the bareboat chartered vessel, Leopard
Bay, presently operating in Brazil.
Operating income remained fairly constant between the two periods
in spite of the increased revenues due, in part, to higher operating
costs associated with the three bareboat chartered vessels, as well as
increased depreciation from the newly acquired vessels. Bareboat
charter rates are generally higher than depreciation charges for a
vessel.
Interest expense, net of interest income, for the quarter increased
to $2.2 million in the quarter ended March 31, 1999 compared to $1.4
million in the same quarter of 1998 as a result of the vessel
acquisitions described above and the placement of $130 million, 8.75%
Senior Notes completed by the Company in June 1998. Capitalized
interest in each period was approximately $0.3 million.
The Company's current financial position is strong with
approximately $41.3 million of net working capital, including $31.5
million in cash. Additionally, the Company has $75 million of
availability under its credit facility. The Company has two vessels
under construction with delivery expected in the second quarter of this
year. Cash required to complete these vessels is expected to be
approximately $4 million. The Company expects to drydock nine (9)
vessels during the remaining three quarters of 1999 and anticipates a
budget for this purpose of less than $3 million.
GulfMark Offshore, Inc. provides marine transportation services to
the energy industry with a fleet of forty-two (42) offshore support
vessels, primarily in the North Sea, offshore Southeast Asia and Brazil.
Contact: Kevin D. Mitchell, Controller
(713) 963-9522
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This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995 which involve known and unknown risk, uncertainties and other
factors. Among the factors that could cause actual results to differ
materially are: prices of oil and gas and their effect on industry
conditions; industry volatility; fluctuations in the size of the
offshore marine vessel fleet in areas where the Company operates;
changes in competitive factors; and other material factors that are
described from time to time in the Company's filings with the SEC.
Consequently, the forward-looking statements contained herein should not
be regarded as representations that the projected outcomes can or will
be achieved.
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GULFMARK OFFSHORE, INC.
Press Release - For Immediate Release
May 4, 1999
OPERATING RESULTS
(in 000's except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended
March 31
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1999 1998
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<S> <C> <C>
REVENUES.................................................. $ 21,127 $ 16,046
Direct operating expenses................................. (9,946) (5,794)
General and administrative expenses....................... (1,643) (1,369)
Depreciation and amortization............................. (3,120) (2,359)
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OPERATING INCOME........................................ 6,418 6,524
Interest expense, net of interest income.................. (2,172) (1,382)
Other, net................................................ (108) (70)
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Income before income taxes................................ 4,138 5,072
Income tax provision...................................... (1,230) (1,605)
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Net income.............................................. $ 2,908 $ 3,467
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BASIC EARNINGS PER SHARE:
INCOME FROM CONTINUING OPERATIONS....................... $ 0.36 $ 0.43
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DILUTED EARNINGS PER SHARE:
INCOME FROM CONTINUING OPERATIONS....................... $ 0.35 $ 0.42
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Weighted average common shares............................ 8,123 7,976
Weighted average diluted common shares.................... 8,251 8,236
Rates per day worked
North Sea Capable Vessels............................... $ 10,957 $ 10,511
Standard Vessels (primarily Southeast Asia)............. 4,823 4,598
Overall Utilization %
North Sea Capable Vessels............................... 95.3% 98.8%
Standard Vessels (primarily Southeast Asia)............. 66.6% 85.9%
Average Owned or Chartered
North Sea Capable Vessels............................... 19.0 12.0
Standard Vessels (primarily Southeast Asia)............. 12.0 14.0
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Total................................................. 31.0 26.0
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</TABLE>