|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 99
SOURCE: Horizon Offshore, Inc.
HOUSTON, Oct. 24 /PRNewswire/ -- Horizon Offshore, Inc. (Nasdaq: HOFF - news) today reported net income for the quarter ended September 30, 2000, of $3.7 million, or $0.19 per share. This compares with net income of $2.7 million, or $0.15 per share, for the third quarter of 1999. For the third quarter of 2000, the company reported gross profit of $10.3 million, or 18.2 percent, on contract revenues of $56.3 million, compared with gross profit of $8.1 million, or 22.4 percent, on contract revenues of $36.3 million in 1999.
Horizon also reported net income for the nine months ended September 30, 2000, of $5.0 million, or $0.26 per share, which includes a $1.4 million, or $0.07 per share, cumulative effect of an accounting change reducing depreciation expense. This compares with net income of $4.4 million, or $0.24 per share for the nine months ended September 30, 1999. Gross profit was $17.9 million, or 16.5 percent on contract revenues of $108.8 million for the first nine months of 2000, and gross profit was $17.2 million or 23.9 percent on contract revenues of $72.1 million for the first nine months of 1999.
Bill J. Lam, president and chief executive officer, noted that although the offshore construction market remained extremely competitive, Horizon was once again able to generate positive results. The improvement in revenues is a result of several large projects awarded to Horizon, including two major projects in Mexico.
``During the third quarter, we completed a substantial portion of our first major project for Pemex Exploracion y Produccion and began work on the second project. We are particularly proud of the outstanding efforts of both our offshore and onshore personnel and the performance of our equipment in Mexico,'' Lam said. ``We also successfully completed several other large projects in the Gulf of Mexico, including a four-bundle pipelay project which required laying four pipelines simultaneously.''
``We are confident in our ability to capitalize on what we believe is an imminent increase in domestic construction activity as driven by sustained increased in drilling activity,'' said Lam.
Horizon Offshore provides marine construction services to the offshore oil and gas industry, primarily in the Gulf of Mexico. The company's fleet is used to perform a wide range of marine construction activities, including installation of marine pipelines to transport oil and gas from newly installed production platforms and other subsea production systems, and the installation and abandonment of production platforms.
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: industry conditions and volatility; prices of oil and gas; the company's ability to obtain and the timing of new projects; changes in competitive factors and other material factors that are described from time to time in the company's filing with the Securities and Exchange Commission. Actual events, circumstances, effects and results may be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. Consequently, the forward-looking statements contained herein should not be regarded as representations by Horizon or any other person that the projected outcomes can or will be achieved.
Horizon Offshore, Inc.
Summary Financial and Operating Data
(Unaudited)
(In thousands, except share and
per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
Income Statement Data:
CONTRACT REVENUES $56,286 $36,286 $108,780 $72,079
COST OF CONTRACT REVENUES 46,022 28,173 90,848 54,866
Gross profit 10,264 8,113 17,932 17,213
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 2,427 2,276 6,808 6,746
Operating income 7,837 5,837 11,124 10,467
OTHER:
Interest expense (2,052) (1,697) (5,644) (4,164)
Interest income and other 31 88 195 493
NET INCOME BEFORE INCOME
TAXES AND CUMULATIVE EFFECT
OF ACCOUNTING CHANGE 5,816 4,228 5,675 6,796
PROVISION FOR INCOME TAXES 2,111 1,480 2,087 2,347
NET INCOME BEFORE CUMULATIVE
EFFECT OF ACCOUNTING CHANGE 3,705 2,748 3,588 4,449
CUMULATIVE EFFECT OF
ACCOUNTING CHANGE, NET OF
TAXES --- --- 1,381 ---
NET INCOME $3,705 $ 2,748 $4,969 $ 4,449
EARNINGS PER SHARE - BASIC:
NET INCOME BEFORE CUMULATIVE
EFFECT OF ACCOUNTING
CHANGE $ 0.20 $0.15 $0.19 $0.24
CUMULATIVE EFFECT OF
ACCOUNTING CHANGE --- --- 0.07 ---
NET INCOME $0.20 $0.15 $ 0.26 $0.24
EARNINGS PER SHARE - DILUTED:
NET INCOME BEFORE CUMULATIVE
EFFECT OF ACCOUNTING
CHANGE $ 0.19 $0.15 $0.19 $0.24
CUMULATIVE EFFECT OF
ACCOUNTING CHANGE --- --- 0.07 ---
NET INCOME $ 0.19 $0.15 $ 0.26 $0.24
SHARES USED IN COMPUTING
NET INCOME PER SHARE -
BASIC 18,827,558 18,800,980 18,815,247 18,757,732
SHARES USED IN COMPUTING
NET INCOME PER SHARE -
DILUTED 19,758,322 18,921,705 19,384,844 18,810,196
Other Non-GAAP Financial Data:
EBITDA (A) $10,845 $8,053 $17,871 $16,449
Other Financial Data:
Depreciation and
amortization $2,977 $2,128 $6,552 $5,488
Capital expenditures $7,911 $2,624 $17,236 $17,864
(A) The company calculates EBITDA (earnings before interest, income
taxes, depreciation and amortization) as net income or loss plus income
taxes, interest expense, depreciation and amortization.EBITDA is a
supplemental financial measurement used by the company and investors in
the marine construction industry in the evaluation of its business.
SOURCE: Horizon Offshore, Inc.