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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 10, 2000
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)
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ITEM 5. OTHER EVENTS
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On May 10, 2000, GulfMark Offshore, Inc. (NASDAQ: GMRK)
announced the results of its operations for the quarter ended
March 31, 2000. Additional information is included in the
Company's press release dated March 8, 2000, which is attached
hereto as Exhibit 99.1
(b) Exhibits.
Exhibit No. Description
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99.1 Press Release dated May 10, 2000
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 10, 2000 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 May 10, 2000
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GulfMark Offshore Reports
Financial Results
May 10, 2000 - Houston - GulfMark Offshore, Inc. (NASDAQ:GMRK) today
announced a net loss for the quarter ended March 31, 2000 of $2.2 million,
or $0.26 per share (diluted), on revenues of $14.4 million. This compares to
net income of $2.9 million, or $0.35 per share (diluted), on revenues of
$21.1 million for the first quarter of 1999.
The first quarter decrease in both revenue and income reflects both lower
utilization and dayrates in the Company's primary markets of the North Sea
and Southeast Asia, partially offset by revenue generated by the three new
vessels added to the fleet in the second half of 1999. Company-wide average
dayrates and utilization for the first quarter of 2000 were $6,642 and 70.2%,
respectively, compared to $9,077 and 84.2% in the comparable period in 1999.
Dayrates and utilization in the first quarter of 1999 reflected the runoff of
contracts initiated in prior periods when favorable market conditions were
more prevalent.
A comparison of financial results for the first quarter of 2000 compared to
the fourth quarter of 1999 confirms that the North Sea market has improved as
the average dayrate increased to $7,608 in 2000 from $6,828 in 1999 and the
utilization climbed to 78.4% in 2000 compared to 77.0% in 1999. Total North
Sea revenues increased quarter-over-quarter by $1.4 million, reflecting both
utilization and dayrate improvements, as well as the addition of the Highland
Guide and Highland Scout which began operations during the first quarter of
2000. Bruce Streeter, President and COO, said "We have seen continued
improvement in the North Sea market as our customers are beginning to firm up
their plans for the next several quarters and have been willing to commit to
contracts to cover this period at improved dayrates. With this in mind, we
have accelerated our drydocking program in the first quarter of the year in
order to take advantage of the improved market during the balance of the
year."
The improvement which the Company had experienced in the Southeast Asia
market during the fourth quarter of 1999 has not carried over into 2000. A
decrease in revenue of $0.1 million from the fourth quarter of 1999 to the
first quarter of 2000 was the result of reduced utilization partially offset
by increased average dayrates and the addition of the Highland Guide during
the first quarter. Utilization fell from 63.5% in the fourth quarter of 1999
to 53.8% in the first quarter of 2000, while the average dayrate improved
slightly on a quarter-over-quarter basis from $3,437 for the fourth quarter
of 1999 to $3,861 for the first quarter of 2000. Commenting on this market,
Mr. Streeter said "We are disappointed that this market has not continued to
rebound during the first several months of the year. Although there are
signs that drilling activity levels may improve during the next several
quarters, we have not seen this translated into increased bid activity for
our services."
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GulfMark Offshore, Inc.
Press Release - For Immediate Release
May 10 2000
Page 3 of 3
Operating costs for the quarter ended March 31, 2000 were lower than in the
comparable period in 1999 as direct operating costs, depreciation expense and
general and administrative expenses were all slightly lower than in the
comparable period in 1999. Bareboat charter expense was $1.8 million in the
first quarter of 2000 which was equivalent to the comparable period in 1999.
The Company has retained its financial strength through the downturn
experienced in the industry as working capital at March 31, 2000 was $33.3
million, of which $29.9 million was in cash. In addition, the Company has
access to its $75.0 million credit facility, which further bolsters its
ability to take advantage of consolidation or acquisition opportunities.
Since drydocking expenditures were accelerated into the first quarter,
capital expenditures for the balance of the year will be limited to contract
specific requirements and the remaining four drydockings required in
Southeast Asia.
Mr. Streeter concluded his remarks by saying "We are cautiously optimistic
that the North Sea market has turned the corner and we will see continued
improvement throughout the balance of the year. We have also been encouraged
by the improvements in the other international markets, where we see
opportunities to expand our presence and further diversify out of the North
Sea. We are indeed hopeful the Southeast Asia market will rebound during the
balance of the year, as it historically has been the last market to recover.
Our financial results should in turn show improvement as we look forward to a
return to profitability in the next several quarters."
Contact: Edward A. Guthrie, 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
May 10 2000
Page 3 of 3
OPERATING RESULTS
(in 000's except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
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2000 1999
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<S> <C> <C>
Revenues . . . . . . . . . . . . . . . . . $ 14,413 $ 21,127
Direct operating expenses. . . . . . . . . (7,971) (8,191)
Bareboat charter expense. . . . . . .. . . (1,756) (1,755)
Depreciation and amortization. . . . . . . (3,093) (3,120)
General and administrative expenses. . . . (1,607) (1,643)
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Operating Income (Loss). . . . . . . . (14) 6,418
Interest expense, net of interest income . (2,814) (2,172)
Loss from unconsolidated venture . . . . . (359) --
Other, net . . . . . . . . . . . . . . . . 69 (108)
Income (loss) before income taxes. . . . . (3,118) 4,138
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Income tax (provision) benefit . . . . . . 966 (1,230)
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Net income (loss) . . . . . . . . . . $ (2,152) $ 2,908
========= ========
BASIC EARNINGS PER SHARE:
NET INCOME (LOSS). . . . . . . . . . . . . $ (0.26) $ 0.36
========= ========
DILUTED EARNINGS PER SHARE:
NET INCOME (LOSS). . . . . . . . . . . . . $ (0.26) $ 0.35
========= ========
Weighted average common shares . . . . . . 8,140 8,123
Weighted average diluted common shares . . 8,140 8,251
Rates Per Day Worked
North Sea based fleet . . . . . . . . $ 7,608 $ 10,758
Southeast Asia based fleet. . . . . . 3,861 4,879
Brazil based fleet. . . . . . . . . . 8,066 9,390
Overall Utilization %
North Sea based fleet . . . . . . . . 78.4% 95.1%
Southeast Asia based fleet. . . . . . 53.8% 63.6%
Brazil based fleet. . . . . . . . . . 83.7% 98.9%
Average Owned or Chartered
North Sea based fleet . . . . . . . . 19.0 18.0
Southeast Asia based fleet. . . . . . 12.0 11.0
Brazil based fleet. . . . . . . . . . 3.0 2.0
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Total. . . . . . . . . . . . . . . 34.0 31.0
========= ========
</TABLE>
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