SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For fiscal year ended December 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 000-28732
A. Full title of the plan and the address of the
plan, if different from that of the issuer
named below:
HVIDE MARINE INCORPORATED RETIREMENT PLAN AND TRUST
B. Name of issuer of the securities held pursuant
to the plan and the address of its principal
executive office
HVIDE MARINE INCORPORATED
2200 Eller Drive, P.O. Box 13038
Ft. Lauderdale, Florida 33316
Telephone: (954) 523-2200
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Plan Administrator has duly caused this annual report to be signed on its
behalf by the undersigned hereunto duly authorized.
HVIDE MARINE INCORPORATED
RETIREMENT PLAN AND TRUST
Date: June 29, 1999 By: /s/ GARY C. VAIL
Gary C. Vail, Plan Administrator
<PAGE>
HVIDE MARINE INCORPORATED RETIREMENT PLAN AND TRUST
Financial Statements and
Supplemental Schedules
Year ended December 31, 1998 and 1997
INDEX
Report of Independent Auditors.............................................F-2
Audited Financial Statements:
Statements of Net Assets Available for Benefits,
With Fund Information...................................................F-3
Statement of Changes in Net Assets Available for Benefits,
With Fund Information...................................................F-5
Notes to Financial Statements...........................................F-9
Supplemental Schedules:
Schedule of Assets Held for Investment Purposes........................F-13
Schedule of Reportable Transactions....................................F-14
F-1
<PAGE>
Report of Independent Auditors
Compensation Committee
Hvide Marine Incorporated Retirement Plan and Trust
We have audited the accompanying statements of net assets available for benefits
of Hvide Marine Incorporated Retirement Plan and Trust (the Plan) as of December
31, 1998 and 1997, and the related statements of changes in net assets available
for benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan at
December 31, 1998 and 1997, and the changes in its net assets available for
benefits for the years then ended, in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental schedules
of assets held for investment purposes as of December 31, 1998 and reportable
transactions for the year then ended, are presented for purposes of additional
analysis and are not a required part of the financial statements but are
supplemental information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. These supplemental schedules are the responsibility of the
Plan's management. The Fund information in the statement of net assets available
for benefits and the statement of changes in net assets available for benefits
is presented for purposes of additional analysis rather than to present the net
assets available for benefits and changes in net assets available for benefits
of each fund. The supplemental schedules and Fund information have been
subjected to the auditing procedures applied in our audits of the basic
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
/s/ ERNST & YOUNG LLP
June 8, 1999
Miami, Florida
F-2
<PAGE>
Hvide Marine Incorporated Retirement Plan and Trust
Statements of Net Assets Available for Benefits, With Fund Information
December 31, 1998 and 1997
<TABLE>
<CAPTION>
Spectrum Dividend Equity Equity Inter-
High Yield Income Growth Income Index national Mid Cap New America
Fund Fund Fund Fund 500 Fund Stock Fund Growth Growth Fund
----------- ---------- ----------- ----------- ----------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1998
Assets
Investments at fair value
(Note 3):
Mutual Funds............ $ 267,449 $ 258,199 $ 350,465 $ 4,357,747 $ 5,899,372 $ 583,256 $ 1,611,672 $799,060
Cash.................... -- -- -- -- -- -- -- --
Common Trust Fund....... -- -- -- -- -- -- -- --
Company Stock........... -- -- -- -- -- -- -- --
----------- ---------- ----------- ----------- ----------- ----------- ----------- --------
267,449 258,199 350,465 4,357,747 5,899,372 583,256 1,611,672 799,060
Contributions Receivable:
Participants............ 4,247 3,889 3,213 24,208 32,976 3,954 12,992 6,952
Employer................ 2,878 2,882 2,290 18,758 24,710 2,680 9,300 4,696
----------- ---------- ----------- ----------- ----------- ----------- ----------- --------
Net assets available for
benefits.................. $ 274,574 $ 264,970 $ 355,968 $ 4,400,713 $ 5,957,058 $ 589,890 $ 1,633,964 $810,708
=========== ========== =========== =========== =========== =========== =========== ========
1997
Assets
Investments:
Mutual Funds............ $ 162,994 $ 117,383 $ -- $ 4,129,048 $ 3,932,043 $ 671,618 $ 1,052,612 $409,004
Common Trust Fund....... -- -- -- -- -- -- -- --
Company Stock........... -- -- -- -- -- -- -- --
----------- ---------- ----------- ----------- ----------- ----------- ----------- --------
162,994 117,383 -- 4,129,048 3,932,043 671,618 1,052,612 409,004
Contributions Receivable:
Participants............ 2,371 1,597 -- 21,080 18,420 4,207 6,840 4,406
Employer................ 677 434 -- 5,443 4,735 1,018 1,563 974
----------- ---------- ----------- ----------- ----------- ----------- ----------- --------
Net assets available for
benefits.................. $ 166,042 $ 119,414 $ -- $ 4,155,571 $ 3,955,198 $ 676,843 $ 1,061,015 $414,384
=========== ========== =========== =========== =========== =========== =========== ========
</TABLE>
See accompanying notes.
F-3
<PAGE>
Hvide Marine Incorporated Retirement Plan and Trust
Statements of Net Assets Available for Benefits, With Fund
Information (continued)
December 31, 1998 and 1997
<TABLE>
<CAPTION>
Science and Stable Value
New Asia New Horizons Technology Small-Cap Hvide Marine Common Trust
Fund Fund Fund Value Fund Common Stock Fund Other Total
----------- ------------- ------------ ---------- ------------ ----------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1998
Assets
Investments at fair value (Note 3):
Mutual Funds........ $ 70,938 $ 532,618 $ 1,571,747 $ 2,776,526 $ -- $ -- $ -- $ 19,079,049
Cash................ -- -- -- -- -- -- 16,000 16,000
Common Trust
Fund.............. -- -- -- -- -- 10,264,999 -- 10,264,999
Company Stock....... -- -- -- -- 416,674 -- -- 416,674
----------- ------------- ------------ ----------- ---------- ------------- -------- ------------
70,938 532,618 1,571,747 2,776,526 416,674 10,264,999 16,000 29,776,722
Contributions Receivable:
Participants........ 929 5,877 13,910 14,013 3,354 46,993 -- 177,507
Employer............ 758 3,859 10,464 11,858 2,207 46,511 -- 143,851
----------- ------------- ------------ ----------- ---------- ------------- -------- ------------
Net assets available for
benefits............ $ 72,625 $ 542,354 $ 1,596,121 $ 2,802,397 $ 422,235 $ 10,358,503 $ 16,000 $ 30,098,080
=========== ============= ============ =========== ========== ============= ======== ============
1997
Assets
Investments:
Mutual Funds........ $ 41,971 $ 704,253 $ 879,804 $ 3,871,570 $ -- $ -- $ -- $ 15,972,300
Common Trust Fund -- -- -- -- -- 8,779,589 -- 8,779,589
Company Stock....... -- -- -- -- 293,341 -- -- 293,341
----------- ------------- ------------ ----------- ---------- ------------- -------- ------------
41,971 704,253 879,804 3,871,570 293,341 8,779,589 -- 25,045,230
Contributions Receivable:
Participants........ 467 3,751 8,094 14,204 1,834 43,867 -- 131,138
Employer............ 115 854 1,771 3,930 487 13,558 -- 35,559
----------- ------------- ------------ ----------- ---------- ------------- -------- ------------
Net assets available for
benefits............. $ 42,553 $ 708,858 $ 889,669 $ 3,889,704 $ 295,662 $ 8,837,014 $ -- $ 25,211,927
=========== ============= ============ =========== ========== ============= ======== ============
</TABLE>
See accompanying notes.
F-4
<PAGE>
Hvide Marine Incorporated Retirement Plan and Trust
Statement of Changes in Net
Assets Available for Benefits
Year ended December 31, 1998
<TABLE>
<CAPTION>
Equity New
High Spectrum Dividend Equity Index Int'l Mid America
Yield Income Growth Income 500 Stock Cap Growth
Fund Fund Fund Fund Fund Fund Growth Fund
--------- --------- --------- ---------- ---------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income:
Net appreciation
(depreciation)
in fair value of
investments............... $ (13,731) $ (3,494) $ (35) $ 62,730 $1,124,279 $ 74,001 $ 207,237 $ 30,754
Dividends................. 21,448 18,337 12,428 335,457 71,119 21,237 31,659 58,580
Participant contributions... 53,330 50,171 34,312 362,317 406,736 65,518 186,161 118,395
Employer contributions...... 38,982 31,066 13,322 248,638 265,804 37,833 96,588 56,735
--------- --------- --------- ---------- ---------- ---------- ----------- ----------
Total additions............... 100,029 96,080 60,027 1,009,142 1,867,938 198,589 521,645 264,464
Deductions from net assets
attributed to:
Benefits paid directly
to participants........... (8,285) (5,556) -- (80,408) (96,657) (142,810) (65,286) (20,572)
--------- --------- --------- ---------- ---------- ---------- ----------- ----------
Total deductions.............. (8,285) (5,556) -- (80,408) (96,657) (142,810) (65,286) (20,572)
--------- --------- --------- ---------- ---------- ---------- ----------- ----------
Net increase (decrease) prior
to interfund
transfers.................... 91,744 90,524 60,027 928,734 1,771,281 55,779 456,359 243,892
Interfund transfers........... 16,788 55,032 295,941 (683,592) 230,579 (142,732) 116,590 152,432
--------- --------- --------- ---------- ---------- ---------- ----------- ----------
Net increase (decrease)....... 108,532 145,556 355,968 245,142 2,001,860 (86,953) 572,949 396,324
Net assets available for
benefits at beginning
of year..................... 166,042 119,414 -- 4,155,571 3,955,198 676,843 1,061,015 414,384
--------- --------- --------- ---------- ---------- ---------- ----------- ----------
Net assets available for
benefits at
end of year................. $274,574 $ 264,970 $ 355,968 $4,400,713 $5,957,058 $ 589,890 $ 1,633,964 $ 810,708
========= ========= ========= ========== ========== ========== =========== ==========
</TABLE>
See accompanying notes.
F-5
<PAGE>
Hvide Marine Incorporated Retirement Plan and Trust
Statement of Changes in Net
Assets Available for Benefits (continued)
Year ended December 31, 1998
<TABLE>
<CAPTION>
Stable
Hvide Value Stable
New New Science & Small-Cap Marine Common Value Cash
Asia Horizons Technology Value Common Trust Fund Not
Fund Fund Fund Fund Stock Fund Schedule E Other Invested Total
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income:
Net appreciation
(depreciation) in
fair value
of
investments.. $(4,021) $ 13,417 $ 363,174 $ (652,923) $(717,809) $ -- $ -- $ -- $ -- $ 483,579
Dividends..... 1,242 27,224 37,456 196,807 -- 313,642 236,627 -- -- 1,383,263
Participant
contributions.. 9,039 99,271 165,689 236,181 54,978 297,160 313,050 -- -- 2,452,308
Employer
contributions.. 6,213 49,628 102,339 165,179 26,405 287,863 265,564 (79,849) -- 1,612,310
------- --------- ---------- ---------- --------- ---------- ----------- -------- ------- -----------
Total additions
(decrease)........ 12,473 188,540 665,658 (54,756) (636,426) 898,665 815,241 (79,849) -- 5,931,460
Deductions from net
assets attributed to:
Benefits paid
directly
to
participants... -- (22,801) (36,897) (33,757) (1,093) (267,101) (264,084) -- -- (1,045,307)
------- --------- ---------- ---------- --------- ---------- ----------- -------- ------- -----------
Total deductions... -- (22,801) (36,897) (33,757) (1,093) (267,101) (264,084) -- -- (1,045,307)
------- --------- ---------- ---------- --------- ---------- ----------- -------- ------- -----------
Net increase
(decrease)
prior to interfund
transfers......... 12,473 165,739 628,761 (88,513) (637,519) 631,564 551,157 (79,849) -- 4,886,153
Interfund transfers
(decrease)........ 17,599 (333,243) 74,691 (998,794) 764,092 (9,468,578) 9,807,346 79,849 16,000 --
------- --------- ---------- ---------- --------- ---------- ----------- -------- ------- -----------
Net increase....... 30,072 (167,504) 703,452 (1,087,307) 126,573 (8,837,014) 10,358,503 -- 16,000 4,886,153
Net assets
available for
benefits at
beginning
of year ......... 42,553 708,858 889,669 3,889,704 295,662 8,837,014 -- -- -- 25,211,927
-------- --------- ---------- ----------- --------- ---------- ----------- -------- ------ -----------
Net assets available
for benefits at
end of year....... $ 72,625 $ 541,354 $1,593,121 $2,802,397 $ 422,235 $ -- $10,358,503 $ -- $16,000 $30,098,080
======= ========= ========== ========== ========= ========== =========== ======== ======= ===========
</TABLE>
See accompanying notes.
F-6
<PAGE>
Hvide Marine Incorporated Retirement Plan and Trust
Statement of Changes in Net
Assets Available for Benefits, With Fund Information
Year ended December 31, 1997
<TABLE>
<CAPTION>
Equity New
High Spectrum Equity Index Int'l Mid America
Yield Income Income 500 Stock Cap Growth
Fund Fund Fund Fund Fund Growth Fund
-------- ---------- -------- --------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation (depreciation) in fair value
of investments............................... $ 5,772 $ 3,440 $ 456,240 $ 757,277 $ (28,077) $ 128,960 $ 48,945
Dividends.................................... 8,567 6,832 395,021 79,062 35,846 10,924 19,365
Participant contributions...................... 37,932 24,647 297,641 242,925 67,255 88,396 50,974
Employer contributions......................... 23,781 16,059 189,609 151,617 40,377 51,017 34,587
-------- -------- ---------- ----------- --------- ----------- ---------
Total additions.................................. 76,052 50,978 1,338,511 1,230,881 115,401 279,297 153,871
Deductions from net assets attributed to:
Benefits paid directly to participants......... (9,561) (4,185) (195,555) (191,214) (9,984) (12,744) (10,736)
-------- -------- ---------- ----------- --------- ----------- ---------
Total deductions................................. (9,561) (4,185) (195,555) (191,214) (9,984) (12,744) (10,736)
-------- -------- ---------- ----------- --------- ----------- ---------
Net increase (decrease) prior to interfund
transfers....................................... 66,491 46,793 1,142,956 1,039,667 105,417 266,553 143,135
Interfund transfers.............................. 67,203 10,275 317,189 537,450 4,579 55,507 (144,839)
-------- -------- ---------- ----------- --------- ----------- ---------
Net increase (decrease).......................... 133,694 57,068 1,460,145 1,577,117 109,996 322,060 (1,704)
Net assets available for benefits at beginning
of year........................................ 32,348 62,346 2,695,426 2,378,081 566,847 738,955 416,088
-------- -------- ---------- ----------- --------- ----------- ---------
Net assets available for benefits at end of year. $166,042 $119,414 $4,155,571 $ 3,955,198 $ 676,843 $ 1,061,015 $ 414,384
======== ======== ========== =========== ========= =========== =========
</TABLE>
See accompanying notes.
F-7
<PAGE>
Hvide Marine Incorporated Retirement Plan and Trust
Statement of Changes in Net
Assets Available for Benefits, With Fund Information (continued)
Year ended December 31, 1997
<TABLE>
<CAPTION>
Stable
Hvide Value
New New Science & Small-Cap Marine Common
Asia Horizons Technology Value Common Trust
Fund Fund Fund Fund Stock Fund Total
---------- ----------- ----------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net realized and unrealized appreciation
(depreciation) in fair value....... $ (34,195) $ 52,176 $ (89,202) $ 534,246 $ 5,821 $ -- $ 1,841,403
Dividends............................ 628 17,092 83,561 247,042 -- 508,938 1,412,878
Participant contributions.............. 15,863 62,659 96,731 209,885 18,031 594,488 1,807,427
Employer contributions................. 7,673 38,156 55,522 138,299 9,168 467,828 1,223,693
--------- ---------- --------- ---------- ---------- ----------- ------------
Total additions.......................... (10,031) 170,083 146,612 1,129,472 33,020 1,571,254 6,285,401
Deductions from net assets attributed to:
Benefits paid directly to participants. (7,184) (12,689) (5,089) (69,080) (2,779) (583,506) (1,114,306)
--------- ---------- --------- ---------- ---------- ----------- ------------
Total deductions......................... (7,184) (12,689) (5,089) (69,080) (2,779) (583,506) (1,114,306)
--------- ---------- --------- ---------- ---------- ----------- ------------
Net increase (decrease) prior to interfund
transfers.............................. (17,215) 157,394 141,523 1,060,392 30,241 987,748 5,171,095
Interfund transfers...................... (108,722) (243,997) 26,057 260,037 261,797 (1,042,536) --
--------- ---------- --------- ---------- ---------- ----------- ------------
Net increase (decrease).................. (125,937) (86,603) 167,580 1,320,429 292,038 (54,788) 5,171,095
Net assets available for benefit at
inception of plan....................... 168,490 795,461 722,089 2,569,275 3,624 8,891,802 20,040,832
--------- ---------- --------- ---------- ---------- ----------- ------------
Net assets available for benefit at
end of year .......................... $ 42,553 $ 708,858 $ 889,669 $3,889,704 $ 295,662 $ 8,837,014 $ 25,211,927
========= ========== ========= ========== ========== =========== ============
</TABLE>
See accompanying notes.
F-8
<PAGE>
Hvide Marine Incorporated Retirement Plan and Trust
Notes to Financial Statements
December 31, 1998
1. Summary of Significant Accounting Policies
Basis of Presentation
The accounting records of the Hvide Marine Incorporated Retirement Plan and
Trust (the Plan) are maintained on the accrual basis. All securities
transactions of the Plan are recorded as of the trade date.
Valuation of Investments
Marketable securities are sated at fair value. Securities traded on a national
securities exchange are valued at the last reported sales price on the last
business day of the plan year. The fair value of the participation units owned
by the Plan in the common trust fund is based on quoted redemption values on the
last business day of the plan year. The shares of registered investment
companies are valued at quoted market prices which represent the net asset
values of shares held by the Plan at year-end.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
2. Description of Plan
A complete description of Plan provisions including those relating to
contributions, vesting, withdrawals, and distributions is disclosed in the
Summary Plan Description and the Plan Document. Copies of these documents are
available from Hvide Marine Incorporated's Benefits Department. The following
summary should be read in conjunction with the aforementioned documents.
General
The Plan is a defined contribution plan subject to the provisions of the
Employee Retirement Income Security Act of 1974 (ERISA) and covers substantially
all employees of Hvide Marine Incorporated (the Company or the Employer). The
plan was adopted effective July 1, 1985.
F-9
<PAGE>
Hvide Marine Incorporated Retirement Plan and Trust
Notes to Financial Statements (continued)
2. Description of Plan (continued)
Contributions
Participants may contribute up to 12% of pre-tax and up to 1% of after-tax
annual compensation up to the current dollar limit set by the Internal Revenue
Service. The Company may make a discretionary matching based on the
participant's eligibility. The Company may also, at its discretion, make
additional contributions based on the participant's compensation.
Participants may select to invest contributions among several investment options
that involve investments in money market, bond, investment contract trusts,
equity funds and the Company's common stock.
Participant Accounts
Each participant's account is credited with the participant's contributions, the
appropriate portion of the Employer's contributions, and an allocation of Plan
earnings. The benefit to which a participant is entitled is the benefit that can
be provided from the participant's account. Participant contributions and
related investment income are at all times 100% vested and nonforfeitable.
Participants become vested in Employer contributions and actual earnings thereon
according to the vesting schedule described below.
Vesting, Withdrawals and Distributions
Participants are immediately vested in their contributions plus actual earnings
thereon. Vesting in any Employer contributions plus actual earnings thereon is
based on years of continuous service. A participant vests 20% in Employer
contributions each year until they are 100% vested after five years of
continuous service or upon death, disability or retirement. Withdrawals and
distributions are controlled in accordance with the provisions of the Plan.
Administrative Expenses
All of the administrative expenses of the Plan may be paid by the Company or the
Plan. During 1998, the Company paid substantially all of the administrative
expenses of the Plan.
Plan Termination
Although it has not expressed any intent to do so, the Company has the right
under the Plan, to discontinue its contributions and to terminate the Plan
subject to the provisions of ERISA. In the event of Plan termination,
participants will become 100% vested in their accounts.
F-10
<PAGE>
Hvide Marine Incorporated Retirement Plan and Trust
Notes to Financial Statements (continued)
3. Investments
The following table presents the fair value of investments with those
representing 5% or more of the Plan's assets being separately identified at
December 31, 1998 and 1997:
<TABLE>
<CAPTION>
1998 1997
---------------- ----------------
<S> <C> <C>
Mutual funds:
Equity Income Fund......................................... $ 4,357,747 $ 4,129,049
Equity Index 500 Fund...................................... 5,899,372 3,932,043
Mid Cap Growth............................................. 1,611,672 --
Science & Technology Fund.................................. 1,571,747 --
Small Cap Value Fund....................................... 2,776,526 3,871,570
Other...................................................... 2,861,985 4,039,638
---------------- ----------------
19,079,049 15,972,300
---------------- ----------------
Cash........................................................... 16,000 --
Common trust fund:
Stable Value Fund Schedule E............................... 10,264,999 --
Stable Value Fund.......................................... -- 8,779,589
Common stock:
Hvide Marine Incorporated.................................. 416,674 293,341
---------------- ----------------
$ 29,776,722 $ 25,045,230
================ ================
</TABLE>
During the years ended December 31, 1998 and 1997, the Plan's net appreciation
(depreciation) in the fair value of investments was as follows:
<TABLE>
<CAPTION>
1998 1997
---------------- ----------------
<S> <C> <C>
Mutual funds................................................... $ 1,201,388 $ 1,835,582
Common trust fund.............................................. -- --
Common stock................................................... (717,809) 5,821
---------------- ----------------
$ 483,579 $ 1,841,403
================ ================
</TABLE>
4. Income Tax Status
The Plan has received a determination letter from the Internal Revenue Service
dated November 18, 1996, stating that the Plan is qualified under Section 401(a)
of the Internal Revenue Code (the Code) and, therefore, the related trust is
exempt from taxation. Once qualified, the Plan is required to operate in
conformity with the Code to maintain its qualification. The Plan Administrator
believes the Plan is being operated in compliance with the applicable
requirements of the Code and, therefore, believes that the Plan is qualified and
the related trust is tax exempt.
F-11
<PAGE>
Hvide Marine Incorporated Retirement Plan and Trust
Notes to Financial Statements (continued)
5. Year 2000 Issue (Unaudited)
The Plan Sponsor has determined that it will be necessary to take certain steps
in order to ensure that the Plan's information systems are prepared to handle
Year 2000 dates. The Plan Sponsor is taking a two phase approach. The first
phase addresses internal systems that must be modified or replaced to function
properly. Both internal and external resources are being utilized to replace or
modify existing software applications, and test the software and equipment for
the Year 2000 modifications. The Plan Sponsor anticipates substantially
completing this phase of the project by June 1999.
For the second phase of the project, Plan management established formal
communications with its third party service providers to determine that they
have developed plans to address their own Year 2000 problems as they relate to
the Plan's operations. All third party service providers have indicated that
they will be Year 2000 compliant by early 1999. If modification of data
processing systems of either the Plan, the Plan Sponsor, or its service
providers are not completed timely, the Year 2000 problem could have a material
impact on the operations of the Plan. Plan management has not developed a
contingency plan, because they are confident that all systems will be Year 2000
ready.
6. Other Matters
As of June 25, 1999, the fair value of the Company's common stock, as held by
the Plan as of December 31, 1998, was $169,170.
F-12
<PAGE>
Hvide Marine Incorporated Retirement Plan and Trust
Line 27a - Schedule of Assets Held for Investment Purposes
December 31, 1998
<TABLE>
<CAPTION>
Description of Investment,
Including Maturity Date, Rate
Identity of Issuer, Borrower, of Interest, Par on Maturity Current
Lessor or Similar Party Value Cost Value
<S> <C> <C> <C>
Mutual Funds:
*T. Rowe Price Trust Company:
High Yield Fund $ 272,572 $ 267,449
Spectrum Income Fund 259,353 258,199
Dividend Growth Fund 347,866 350,465
Equity Income Fund 3,857,949 4,357,747
Equity Index 500 Fund 3,942,975 5,899,372
International Stock Fund 535,056 583,256
Mid Cap Growth 1,269,584 1,611,673
New America Growth Fund 733,055 799,060
New Asia Fund 96,613 70,938
New Horizons Fund 510,123 532,618
Science & Technology Fund 1,303,128 1,571,747
Small-Cap Value Fund 2,804,001 2,776,525
--------------- ----------------
15,932,275 19,079,049
*T. Rowe Price Trust Company Cash 16,000 16,000
Common trust fund:
*T. Rowe Price Trust Company Stable Value Fund Schedule E 10,264,999 10,264,999
*Hvide Marine Incorporated Common Stock 1,115,527 416,674
--------------- ----------------
$ 27,328,801 $ 29,776,722
=============== ================
</TABLE>
*Indicates party in-interest
F-13
<PAGE>
Hvide Marine Incorporated Retirement Plan and Trust
Schedule of Reportable Transactions
December 31, 1998
<TABLE>
<CAPTION>
Current
Value of
Asset on Net
Identity of Party Description of Purchase Selling Cost of Transaction Gain
Involved Assets Price Price Asset Date or Loss
---------------- ------------------------------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Category (i)--Individual transactions in excess
of 5% of the plan assets:
T. Rowe Price Trust Company Stable Value Fund Schedule E $9,300,171 $ -- $ 9,300,171 $ 9,300,171 $ --
T. Rowe Price Trust Company Stable Value Fund -- 9,300,171 9,300,171 9,300,171 --
Category (iii)--Series of transactions
involving securities of the same issue
aggregating in excess of 5% of the plan assets:
T. Rowe Price Trust Company Equity Income Fund $1,588,506 $ -- $ 1,588,506 $ 1,588,506 $ --
Equity Income Fund -- 1,422,538 1,270,069 1,422,538 152,469
T. Rowe Price Trust Company Equity Index 500 Fund 1,619,171 -- 1,619,171 1,619,171 --
Equity Index 500 Fund -- 776,121 644,361 776,121 131,760
T. Rowe Price Trust Company Small-Cap Value Fund 1,000,248 -- 1,000,248 1,000,248 --
Small-Cap Value Fund -- 1,442,369 1,362,958 1,442,369 79,411
T. Rowe Price Trust Company Stable Value Fund Schedule E 11,470,844 -- 11,470,844 11,470,844 --
Stable Value Fund Schedule E -- 1,205,843 1,205,843 1,205,843 --
T. Rowe Price Trust Company Stable Value Fund 2,353,551 -- 533,000 533,000 --
Stable Value Fund -- 11,133,140 11,133,140 11,133,140 --
</TABLE>
There were no category (ii) or (iv) reportable transactions during 1998.
F-14
<PAGE>
Exhibit A
Consent of Independent Certified Public Accountants
We consent to the incorporation by reference in the Registration Statement (Form
S-8 No. 333-19543) pertaining to the Hvide Marine Incorporated Retirement Plan
and Trust of our report dated June 8, 1999, with respect to the financial
statements and supplemental schedules of the Hvide Marine Incorporated
Retirement Plan and Trust included in this Annual Report (Form 11-K) for the
year ended December 31, 1998.
/s/ Ernst & Young LLP
Miami, Florida
June 25, 1999
