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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): November 8, 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 November 8, 1999, GulfMark Offshore, Inc. (NASDAQ: GMRK) announced net
earnings for the quarter ended September 30, 1999. Additional information is
included in the Company's press release dated November 8, 1999, which is
attached hereto as Exhibit 99.1
(b) Exhibits.
Exhibit No. Description
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99.1 Press Release dated November 8, 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: November 8, 1999 By: /s/ Edward A. Guthrie
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Executive Vice President and
Chief Financial Officer
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EXHIBIT INDEX
Exhibit No. Description
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99.1 Press Release dated November 8, 1999
3
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PRESS RELEASE
FOR IMMEDIATE RELEASE
November 8, 1999 - Houston - GulfMark Offshore, Inc. (NASDAQ:GMRK)
today announced net income for the quarter ended September 30, 1999 of
$0.6 million or $0.07 per diluted share compared to income of $6.3
million or $0.76 per diluted share for the quarter ended September 30,
1998 (excluding a $0.23 after tax gain on the sale of a 51% owned joint
venture in 1998). Revenues were $19.0 million for the third quarter of
1999 compared to $24.3 million for the same period one year ago.
The current quarter's operations continue to reflect the oversupply
of vessels operating in the North Sea. This oversupply has been caused
by a combination of factors including: 1) a reduction in exploration and
development activities reflecting earlier commodity price decreases and
the impending consolidations among the major oil companies; 2) a delay
in the delivery of newbuild drilling rigs; and 3) the delivery in 1998
and 1999 of newly constructed vessels in anticipation of the expanded
deepwater drilling rig fleet.
The Company's average North Sea dayrate and utilization have
declined from $13,276 and 96.6%, respectively in the third quarter of
1998 to $9,838 and 85.1% in the current year's third quarter as a direct
result of this oversupply. The Company has sustained its North Sea
utilization through spot market contracts instead of opting for term
contracts at the lower current market rates. Bruce Streeter, President
& COO said "We will not sacrifice future year potential earnings to
generate income in the current year; however, we will continue to seek
term contracts and opportunities which provide economic returns to our
shareholders while we await the return of a more favorable market."
Average dayrates and utilization for Southeast Asia of $3,839 and
69.0% for the quarter ended September 30, 1999, were significantly lower
than the $4,961 and 84.7% for the same quarter in 1998. This market has
shown some strength in recent weeks as both utilization and dayrates
have demonstrated modest improvement.
The Company's current financial position continues to strengthen
with approximately $44.6 million of net working capital of which $39.3
million is in cash as of September 30, 1999. This compares to $45.4
million and $35.6 million respectively at June 30, 1999. In addition to
cash on hand, the Company has an undrawn $75 million credit facility.
Operating cash flow was $8.2 million during the most recently
completed quarter of which $3.8 was used for the final payments on two
new vessel deliveries. Budgeted capital expenditures for the fourth
quarter of 1999 are expected to be $0.7 million as two vessels are
drydocked.
GulfMark Offshore, Inc. provides marine transportation services to
the energy industry with a fleet of fifty (50) offshore support vessels,
primarily in the North Sea, offshore Southeast Asia and Brazil.
Contact: Edward A. Guthrie, Executive Vice President and Chief
Financial Officer
(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
November 8, 1999
OPERATING RESULTS
(in 000's except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
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1999 1998 1999 1998
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<S> <C> <C> <C> <C>
REVENUES................................... $18,962 $24,334 $59,983 $62,827
Direct operating expenses.................. (11,635) (9,326) (32,226) (22,966)
General and administrative expenses........ (1,452) (1,548) (4,565) (4,335)
Depreciation and amortization.............. (3,077) (2,939) (9,426) (8,265)
------- ------- ------- -------
OPERATING INCOME......................... 2,798 10,521 13,766 27,261
Interest expense, net of interest income... (2,378) (2,213) (6,837) (5,816)
Gain on sale of joint venture interest..... -- 2,920 -- 2,920
Minority interest and other, net........... 164 80 125 (132)
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Income before income taxes................. 584 11,308 7,054 24,233
Income tax provision....................... (20) (3,109) (1,780) (7,237)
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Net income............................... $ 564 $ 8,199 $ 5,274 $16,996
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BASIC EARNINGS PER SHARE:
NET INCOME............................... $ 0.07 $ 1.01 $ 0.65 $ 2.12
======= ======= ======= =======
DILUTED EARNINGS PER SHARE:
NET INCOME............................... $ 0.07 $ 0.99 $ 0.64 $ 2.06
======= ======= ======= =======
Weighted average common shares............. 8,129 8,104 8,127 8,021
Weighted average diluted common shares..... 8,302 8,268 8,274 8,248
Rates per day worked
North Sea Capable Vessels................ $ 9,838 $13,276 $10,326 $12,268
Standard Vessels
(primarily Southeast Asia)............. 3,839 4,961 4,451 4,858
Overall Utilization %
North Sea Capable Vessels................ 85.1% 96.6% 90.8% 97.9%
Standard Vessels
(primarily Southeast Asia)............. 69.0% 84.7% 65.7% 86.0%
Average Owned or Chartered
North Sea Capable Vessels................ 20.9 16.8 19.7 14.7
Standard Vessels
(primarily Southeast Asia)............. 12.0 12.2 12.0 13.4
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Total.................................. 32.9 29.0 31.7 28.1
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</TABLE>
