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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 8, 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 March 8, 2000, GulfMark Offshore, Inc. (NASDAQ: GMRK)
announced the results of its operations for the quarter ended
December 31, 1999. 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 March 8, 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: March 8, 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 March 8, 2000
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GulfMark Offshore Announces 1999 Financial Results
March 8, 2000 - Houston - GulfMark Offshore, Inc. (NASDAQ:GMRK) today announced
a net loss for the fourth quarter ended December 31, 1999 of $3.4 million, or
$0.42 per share (diluted), on revenues of $13.0 million. This compares to net
income of $3.8 million, or $0.46 per share (diluted), on revenues of $23.4
million for the fourth quarter of 1998.
For the year ended December 31, 1999, the Company reported net income of $1.9
million, or $0.22 per share (diluted), on revenues of $72.3 million compared to
net income of $17.9 million, or $2.29 per share (diluted), on revenues of $86.2
million for the same period in 1998. The annual 1998 results exclude a $0.23
per share (diluted) after tax gain on the sale of a 51% owned joint venture.
The fourth quarter decrease in both revenue and income reflects the weakest
market for the Company's fleet of North Sea vessels in the last five years.
This was caused by an oversupply of vessels in this market brought on by
reductions in exploration and development activities, delays in the delivery of
newbuild drilling rigs and an increase in the supply of service vessels built
in anticipation of an expanded deepwater drilling rig market. Dayrates and
utilization for the fourth quarter of 1999 were $7,342 and 70.8%, respectively,
compared to $11,598 and 97.6% in the comparable period in 1998. Bruce
Streeter, President and COO, said "We believe this quarter represents the
trough in this market, as both dayrates and utilization have improved during
the first two months of 2000. In addition, four vessels, which were either
undergoing conversion or mobilization during the fourth quarter, have commenced
their contracts as of the first quarter of 2000, as previously announced in
December 1999. These contracts alone will help improve the Company's results
quarter-over-quarter before taking into account what we believe are stronger
market conditions."
In the Southeast Asia market, the average dayrate for the fourth quarter of
1999 was also lower than in the third quarter of 1999 as the dayrates decreased
to $3,514 from $3,839 in the prior quarter of 1999 and from $4,936 in the
fourth quarter of 1998. Utilization of 70.0% for the quarter ended December
31, 1999 increased slightly compared to the previous quarters of 1999 but was
still less than the comparable period utilization of 79.1% in 1998. When
commenting on this market, Mr. Streeter said "We believe we have turned the
corner in this market regarding utilization and are encouraged that dayrates
will follow as market conditions improve in this region."
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The operating costs for the quarter and year ended December 31, 1999 were lower
than in the comparable period in 1998 as the Company took steps to minimize
discretionary expenditures until there were clear signs of a market
turnaround. Daily operating costs for the North Sea and Southeast Asia for the
quarter ended December 31,1999 were $3,834 and $1,048 respectively compared to
$4,680 and $1,183 for the fourth quarter of 1998; and, $4,091 and $1,046
respectively for the year 1999 compared to $4,335 and $1,206 for the year
1998. Bareboat charter expenses, reported as a component of operating costs,
increased significantly in the year to $7.0 million from $3.2 million in 1998,
reflecting the impact of the additional vessels under charter during 1999.
Depreciation expense also increased during 1999 to $12.4 million from $11.3
million in 1998 as a result of the increased size of the vessel fleet.
The Company maintained its strong financial position as working capital at
December 31, 1999 was $35.8 million, of which $29.4 was in cash, plus
availability of the full $75.0 million credit facility. During the year, the
Company incurred $17.6 million in capital expenditures, including two
newbuilds, the acquisition of a vessel which had been under management by the
Company and the conversion of another vessel to standby service. The impact of
these vessels will not be fully realized until the second quarter of 2000 as
three of the four have gone under contract during the first quarter of 2000.
Mr. Streeter said "We have completed our new-build program and our only capital
expenditure commitment for the upcoming year is to perform the mandated
drydockings required by the vessel classification societies."
Mr. Streeter concluded by saying "We will continue to seek term contracts which
maximize shareholder returns while we await the return of stronger markets in
both the North Sea and Southeast Asia. In the meantime, we are exploring
opportunities which will deploy our assets into the expanding deepwater markets
where dayrates and utilization yield higher returns."
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
March 8, 2000
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,
------------------ -------------------
1999 1998 1999 1998
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues................................. $ 13,007 $ 23,367 $ 72,258 $ 86,194
Direct operating expenses................ (10,453) (11,136) (41,216) (34,102)
General and administrative expenses...... (1,296) (1,383) (6,087) (5,718)
Depreciation and amortization............ (2,995) (3,080) (12,420) (11,345)
-------- --------- -------- --------
Operating Income(Loss)............. (1,737) 7,768 12,535 35,029
Interest expense, net of interest income. (2,664) (2,392) (9,501) (8,208)
Gain on sale of joint venture interest... -- -- -- 2,930
Loss from unconsolidated subsidiary...... (583) -- (865) --
Minority interest and other, net......... -- (4) -- (146)
-------- -------- -------- --------
Income (loss) before income taxes........ (4,984) 5,372 2,169 29,605
Income tax (provision) benefit........... 1,570 (1,579) (308) (8,816)
-------- -------- -------- --------
Net income(loss).................... $ (3,414) $ 3,793 $ 1,861 $ 20,789
======== ======== ======== ========
BASIC EARNINGS PER SHARE:
NET INCOME (LOSS)................... $ (0.42) $ 0.47 $ 0.23 $ 2.58
======== ======== ======== ========
DILUTED EARNINGS PER SHARE:
NET INCOME (LOSS)................... $ (0.42) $ 0.46 $ 0.22 $ 2.52
======== ======== ======== ========
Weighted average common shares........... 8,136 8,123 8,129 8,047
Weighted average diluted common shares... 8,136 8,258 8,271 8,255
Rates per day worked
North Sea Capable Vessels........... $ 7,342 $ 11,598 $ 9,752 $ 12,068
Standard Vessels (primarily
Southeast Asia)................. 3,514 4,936 4,203 4,859
Overall Utilization %
North Sea Capable Vessels........... 70.8% 97.6% 85.3% 97.8%
Standard Vessels (primarily
Southeast Asia)................. 70.0% 79.1% 66.8% 84.6%
Average Owned or Chartered
North Sea Capable Vessels........... 21.3 18.5 19.8 15.7
Standard Vessels (primarily
Southeast Asia)................. 12.0 12.0 12.0 13.0
-------- -------- -------- --------
Total....................... 33.3 30.5 31.8 28.7
======== ======== ========= ========
</TABLE>
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