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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): March 3, 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 March 3, 1999, GulfMark Offshore, Inc. (NASDAQ: GMRK) announced
significantly increased earnings for the quarter and year ended December 31,
1998. Additional information is included in the Company's press release dated
March 3, 1999, which is attached hereto as Exhibit 99.1
(b) Exhibits.
Exhibit No. Description
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99.1 Press Release dated March 3, 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: March 3, 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 March 3, 1999
3
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PRESS RELEASE
FOR IMMEDIATE RELEASE
March 3, 1999 - Houston - GulfMark Offshore, Inc. (NASDAQ:GMRK)
announced significantly increased earnings for the quarter and year ended
December 31, 1998.
For the quarter, net income increased 33% to $3,793,000 or $0.46 per
share (diluted), compared to $2,855,000, or $0.35 per share (diluted), in the
same period of 1997. Revenues for the quarter ended December 31, 1998
increased 89% to $23,367,000 compared to $12,346,000 in the 1997 period.
For the year ended December 31, 1998, income from continuing operations
was $20,789,000 or $2.52 per share (diluted). This represents an increase of
more than 150% over the $8,195,000 or $1.11 per share (diluted) reported for
1997. Revenues for the year increased 87% to $86,194,000 compared to
revenues of $46,019,000 in 1997.
These dramatic increases in revenues and earnings were driven by fleet
expansion and increasing dayrates. In particular, the five vessels added
with the acquisition of Norwegian vessel owning company, Brovig Supply ASA,
in February 1998 contributed approximately half of the revenue and earnings
increase for both the quarter and year ended December 31, 1998. The
deliveries of the Company owned Highland Rover (March 1998) and Highland
Spirit (November 1998) contributed almost 30% of the increase in quarterly
earnings and almost 15% of the annual earnings improvement. Bareboat
chartered vessels added to the fleet during 1998, the Leopard Bay (June),
Mercury Bay (July), and Monarch Bay (October), contributed to the strong
increases in revenues for both the year and quarter and, to a lesser degree,
contributed to the increases in earnings due to the higher operating costs
associated with bareboat charters. For the year ended December 31, 1998, the
Company also benefited from the expanded 1998 construction season in the
North Sea. The Highland Fortress, one of the Company's vessels particularly
attractive to construction support charterers, accounted for almost 10% of
the Company's increase in operating earnings for the year.
The fleet in Southeast Asia saw considerable improvement in 1998
compared to 1997 with average dayrates improving more than 25% and the
average utilization rate for these vessels increasing to 85% from 75% in the
prior year. Results for year ended December 31, 1998, also benefited from
the inclusion of a pre-tax gain of approximately $2.9 million ($0.23 per
diluted share, net of tax) for the cash sale of the Company's 51% owned joint
venture, SeaMark Ltd., which operated two bareboat chartered vessels in
Southeast Asia.
Depreciation and interest expense, net of interest income, for both the
year and quarter increased as a result of the vessel acquisitions described
above and the Senior Note placement completed by the Company in June 1998.
The Company's financial position is strong with approximately $41.5
million of net working capital, $32.0 million of which is cash, and $75
million of availability under its credit facility. The Company has two
vessels under construction with deliveries expected in April and June of this
year. Cash required to complete these vessels is expected to be less than
$7.5 million. The Company expects to drydock eleven (11) vessels during 1999
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and anticipates a budget for this purpose of less than $3.5 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: Frank R. Pierce, Executive Vice President
(713) 963-9522
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: price 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
March 3, 1999
Page 3 of 3
OPERATING RESULTS
(in 000's except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
December 31 December 31
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1998 1997 1998 1997
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<S> <C> <C> <C> <C>
REVENUES............................................... $23,367 $12,346 $86,194 $46,019
Direct operating expenses.............................. (11,136) (4,609) (34,102) (18,231)
General and administrative expenses.................... (1,383) (1,305) (5,718) (5,364)
Depreciation and amortization.......................... (3,080) (1,749) (11,345) (6,711)
------- ------- ------- -------
OPERATING INCOME..................................... 7,768 4,683 35,029 15,713
Interest expense, net of interest income............... (2,392) (471) (8,208) (3,819)
Gain on sale of joint venture interest................. -- -- 2,930 --
Other, net............................................. (4) (62) (146) (73)
------- ------- ------- -------
Income from continuing operations before income taxes.. 5,372 4,150 29,605 11,821
Income tax provision................................... (1,579) (1,295) (8,816) (3,626)
------- ------- ------- -------
INCOME FROM CONTINUING OPERATIONS...................... 3,793 2,855 20,789 8,195
Loss from discontinued operations, net of taxes........ -- -- -- (648)
Loss on disposal of discontinued operations, -- -- -- (1,426)
net of taxes......................................... ------- ------- ------- -------
Net income........................................... $ 3,793 $ 2,855 $20,789 $ 6,121
======= ======= ======= =======
BASIC EARNINGS PER SHARE:
INCOME FROM CONTINUING OPERATIONS.................... $ 0.47 $ 0.36 $ 2.58 $ 1.15
Loss from discontinued operations, net of taxes...... -- -- -- (0.09)
Loss on disposal of discontinued operations,
net of taxes....................................... -- -- -- (0.20)
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$ 0.47 $ 0.36 $ 2.58 $ 0.86
======= ======= ======= =======
DILUTED EARNINGS PER SHARE:
INCOME FROM CONTINUING OPERATIONS.................... $ 0.46 $ 0.35 $ 2.52 $ 1.11
Loss from discontinued operations, net of taxes...... -- -- -- (0.09)
Loss on disposal of discontinued operations,
net of taxes....................................... -- -- -- (0.19)
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$ 0.46 $ 0.35 $ 2.52 $ 0.83
======= ======= ======= =======
Weighted average common shares......................... 8,123 7,916 8,047 7,155
Weighted average diluted common shares................. 8,258 8,245 8,255 7,413
Rates per day worked
North Sea Capable Vessels............................ $11,598 $ 9,712 $12,068 $ 9,930
Standard Vessels (primarily Southeast Asia).......... 4,936 4,058 4,859 3,830
Overall Utilization %
North Sea Capable Vessels............................ 97.6% 98.9% 97.8% 96.5%
Standard Vessels (primarily Southeast Asia).......... 79.1% 84.0% 84.6% 75.4%
Average Owned or Chartered
North Sea Capable Vessels............................ 18.5 9.0 15.7 9.0
Standard Vessels (primarily Southeast Asia).......... 12.0 14.0 13.0 14.0
------- ------- ------- -------
Total.............................................. 30.5 23.0 28.7 23.0
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</TABLE>
