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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): August 11, 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 August 11, 1999, GulfMark Offshore, Inc. (NASDAQ: GMRK) announced net
earnings for the quarter ended June 30, 1999. Additional information is
included in the Company's press release dated August 11, 1999, which is
attached hereto as Exhibit 99.1
(b) Exhibits.
Exhibit No. Description
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99.1 Press Release dated August 11, 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: August 11, 1999 By: /s/ Edward A. Guthrie
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Executive Vice President and CFO
2
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EXHIBIT INDEX
Exhibit No. Description
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99.1 Press Release dated August 11, 1999
3
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PRESS RELEASE
FOR IMMEDIATE RELEASE
August 11, 1999 - Houston - GulfMark Offshore, Inc. (NASDAQ:GMRK) today
announced net earnings for the quarter ended June 30, 1999 of $1.8 million or
$0.22 per diluted share compared to $5.3 million or $0.65 per diluted share
for the same period in 1998.
Revenues were $19.9 million for the second quarter of 1999 compared to
$22.4 million for the same period one year ago. The $2.5 million decrease was
the result of lower dayrates in the North Sea and Southeast Asia markets and
decreased utilization, particularly in Southeast Asia. Revenues in the North
Sea were lower largely due to reduced dayrates on two vessels, which more than
offset the revenue addition of four boats added to this fleet since March 31,
1998. In Southeast Asia, dayrates were slightly lower while utilization fell
from 87.3% for the second quarter of 1998 to 61.5% for the current quarter of
1999.
Operating income of $4.6 million for the second quarter of 1999 was $5.6
million less than the $10.2 million realized in the same period of 1998. The
decrease in income was attributable primarily to decreases in revenues and
higher operating costs stemming from three bareboat chartered vessels added in
1998. Excluding bareboat fees, daily direct operating costs have remained
stable in all markets.
Although commodity prices have escalated over the past six months, oil
service activity has not rebounded in the international arena and is just
beginning to show signs of recovery in the U.S. market. The Company's primary
markets, the North Sea and Southeast Asia, may not rebound in 1999 even if
worldwide commodity prices remain at current levels. Factors which will
affect the timing of the anticipated rebound include the level of offshore
activity, newbuilding delivery and the deployment of vessels from the
Company's primary markets to expanding markets such as Brazil and Africa.
Bruce Streeter, President and Chief Operating Officer, said "Current business
conditions provide both a challenge to obtain levels of profitability
experienced in the past, as well as an opportunity to augment the Company's
fleet of modern, technologically sophisticated vessels. We believe our
forward contract position and diverse mix of markets and equipment will
provide a good earnings stream until the industry recovers while our strong
financial position will allow us to take advantage of acquisition
opportunities."
The Company's current financial position continues to strengthen with
approximately $45.4 million of net working capital, $35.6 million cash and $75
million of availability under its credit facility. At the end of the second
quarter, the Company had 2 vessels under construction with delivery expected
in the third quarter of this year. Cash required to complete these vessels is
expected to be approximately $3.8 million. The Company expects to drydock
eight (8) vessels during the remaining two quarters of 1999 and has budgeted
approximately $2.5 million for this purpose.
GulfMark Offshore, Inc. provides marine transportation services to the
energy industry with a fleet of forty-six (46) offshore support vessels,
primarily in the North Sea, offshore Southeast Asia and Brazil.
Contact: Edward A. Guthrie, Executive Vice President and CFO
(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
August 11, 1999
OPERATING RESULTS
(in 000's except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
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1999 1998 1999 1998
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<S> <C> <C> <C> <C>
REVENUES............................. $19,894 $22,447 $41,021 $38,493
Direct operating expenses............ (10,645) (7,846) (20,591) (13,640)
General and administrative expenses.. (1,470) (1,418) (3,113) (2,787)
Depreciation and amortization........ (3,229) (2,967) (6,349) (5,326)
-------- ------- ------- --------
OPERATING INCOME................... 4,550 10,216 10,968 16,740
Interest expense, net of interest
income............................. (2,287) (2,221) (4,459) (3,603)
Other, net........................... 69 (142) (39) (212)
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Income before income taxes........... 2,332 7,853 6,470 12,925
Income tax provision................. (530) (2,523) (1,760) (4,128)
------- ------- -------- --------
Net income........................... $ 1,802 $ 5,330 $ 4,710 $ 8,797
======= ======== ======= =======
BASIC EARNINGS PER SHARE:
NET INCOME......................... $ 0.22 $ 0.67 $ 0.58 $ 1.10
DILUTED EARNINGS PER SHARE:
NET INCOME......................... $ 0.22 $ 0.65 $ 0.57 $ 1.07
======= ======== ======= =======
Weighted average common shares....... 8,129 7,988 8,126 7,984
Weighted average diluted common
shares............................. 8,268 8,251 8,260 8,246
Rates per day worked
North Sea Capable vessels.......... 10,295 12,545 10,626 11,654
Standard vessels
(Primarily Southeast Asia)........ 4,744 5,021 4,785 4,814
Overall Utilization %
North Sea Capable vessels.......... 92.6% 98.5% 93.9% 98.6%
Standard vessels
(Primarily Southeast Asia)....... 61.5% 87.3% 64.0% 86.6%
Average Owned or Chartered
North Sea Capable vessels.......... 19.3 15.3 19.2 13.7
Standard vessels
(Primarily Southeast Asia)....... 12.0 14.0 12.0 14.0
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Total............................. 31.3 29.3 31.2 27.7
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</TABLE>
