Global Industries, Ltd. Announces New Chief Executive Officer and Results for the Fourth Quarter and Year End 2009
CARLYSS, La., Feb. 25 /PRNewswire-FirstCall/ -- Global Industries, Ltd. (Nasdaq: GLBL) today announced the appointment of a new Chief Executive Officer and results for the fourth quarter and year ended December 31, 2009.
The Company announced that John B. Reed, Jr. has been named Chief Executive Officer of the Company, effective March 2, 2010. Mr. Reed will also become a Director of the Company effective on the same date. John A. Clerico will continue to serve as Chairman of the Board to ensure a smooth transition.
Mr. Clerico stated, "On behalf of our entire Board of Directors, I am very pleased to welcome John Reed to Global Industries. His industry knowledge, operating experience and proven leadership capabilities make him an ideal candidate to lead the Company. In addition to improving Global's position in our traditional offshore marine services markets, John has the vision and skills to lead Global in the deepwater market with our new Global 1200 and Global 1201. I know he will receive strong support from the entire Global team."
John Reed joins Global with more than thirty years experience in the offshore construction industry. Most recently, he served as Chief Executive Officer of Heerema Marine Contractors after holding a number of other senior roles with the Heerema Group including Chief Executive Officer of INTEC Engineering, Inc. He previously held a number of other management roles at Heerema in project management, business development and engineering capacities. He holds a Bachelors degree in Engineering from the University of Mississippi and an MBA from Delta State University. Mr. Reed previously served as a member of the Board of Directors of the National Ocean Industries Association, is a past President of the International Pipeline and Marine Contractors Association and past Chairman of the International Marine Contractors Association, America's Deepwater Division.
With respect to the results for the fourth quarter of 2009, revenues were $146.3 million compared to $250.4 million for the fourth quarter of 2008. Net loss was $5.3 million, or $0.05 per diluted share, for the fourth quarter of 2009 compared to a net loss of $28.1 million, or $0.25 per diluted share, for the fourth quarter of 2008.
Revenues were $914.3 million in fiscal year 2009 compared to $1.07 billion in fiscal year 2008. Net income was $73.7 million, or $0.64 per diluted share, in fiscal year 2009. This compares to a net loss of $119.2 million, or $1.05 per diluted share, in fiscal year 2008.
Commenting on the fourth quarter results, Chairman and Chief Executive Officer John A. Clerico stated, "The winter seasonal downturn, as well as continued delays and postponements of new offshore oil and gas projects, have impacted our fourth quarter results. We have taken proactive steps to cut costs in an effort to better align the cost of our operations with our revenues, which include stacking idle vessels and seasonal layoffs. We are committed to winning business, increasing our project backlog and successfully executing projects for our customers. While our order backlog declined from last year's level of $519.7 million to $103.8 million at the end of 2009, we were successful in booking an additional $91.4 million of new work during January, 2010. Our plan for 2010 is to aggressively and strategically pursue new projects in our niche markets. While we have substantially completed our cost cutting activities, we shall continue to proactively implement cost control measures to appropriately size our operations, as needed.
Mr. Clerico further stated, "We are pleased to also announce that our and the Government's investigation of our activities in West Africa have concluded without any fines or penalties being imposed upon the Company. Both the DOJ and SEC have concluded their investigations and are not recommending any enforcement actions against the Company. We remain committed to conducting our operations in an ethical fashion and in compliance with applicable laws."
A conference call will be held at 9:00 a.m. Central Standard Time on February 25, 2010. Anyone wishing to listen to the conference call may dial 888-677-0183 (domestic) or 1-773-756-0451 (international) and request connection to the "Global Fourth Quarter Earnings" call. Phone lines will open fifteen minutes prior to the start of the call. The call will also be webcast in real time on the Company's website at www.globalind.com, password global, where it will also be archived for anytime reference until March 18, 2010.
All individuals listening to the conference call or the replay are reminded that all conference call material is copyrighted by Global and cannot be recorded or rebroadcast without Global's express written consent.
Global Industries, Ltd. is a leading offshore solutions provider of offshore construction, engineering, project management, and support services including pipeline construction, platform installation and removal, deepwater/SURF installations, IRM, and diving to the oil and gas industry worldwide. The Company's shares are traded on The NASDAQ Global Select Market under the symbol "GLBL."
This press release may contain forward-looking information based on current information and expectations of the Company that involve a number of risks, uncertainties, and assumptions. Among the factors that could cause the actual results to differ materially are: industry conditions, prices of crude oil and natural gas, the Company's ability to obtain and the timing of new projects, and changes in competitive factors. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual outcomes could vary materially from those indicated. New guidance regarding accounting for convertible debt instruments that may be settled in cash upon conversion became effective for our Company beginning January 1, 2009 and is applied retrospectively to all periods presented in this news release.
Set forth are the Company's results of operations for the periods indicated.
RESULTS OF OPERATONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------ ------------
2009 2008 2009 2008
---- ---- ---- ----
Results of Operations
Revenues $146,338 $250,429 $914,348 $1,070,988
Cost of operations 137,692 237,330 755,301 1,084,581
------- ------- ------- ---------
Gross profit (loss) 8,646 13,099 159,047 (13,593)
Loss (gain) on
asset disposals
and impairments 1,084 1,228 (7,165) 856
Selling, general
and administrative
expenses 13,530 21,925 69,165 95,364
------ ------ ------ ------
Operating income
(loss) (5,968) (10,054) 97,047 (109,813)
------ ------- ------ --------
Interest income 426 1,768 2,020 14,477
Interest expense (3,083) (3,861) (13,061) (16,439)
Other income
(expense), net 723 1,225 7,302 (641)
--- ----- ----- ----
Income (loss)
before taxes (7,902) (10,922) 93,308 (112,416)
Income tax
(benefit) expense (2,651) 17,139 19,577 6,775
------ ------ ------ -----
Net income (loss) $ (5,251) $(28,061) $ 73,731 $ (119,191)
======= ======= ======= =========
Earnings (Loss)
Per Common Share
Basic $ (0.05) $ (0.25) $ 0.65 $ (1.05)
Diluted $ (0.05) $ (0.25) $ 0.64 $ (1.05)
Weighted Average
Common Shares
Outstanding
Basic 112,872 112,190 112,631 113,647
Diluted 112,872 112,190 113,125 113,647
Other Data
Depreciation
and amortization $ 13,413 $ 16,439 $ 66,047 $ 67,163
Backlog at End
of Period $103,758 $ 519,652
During the first quarter of 2009, we discontinued allocation of corporate stewardship costs to our reportable segments. This change has been reflected as a retrospective change to the financial information for the three months and twelve months ended December 31, 2009 presented below. This change did not affect our consolidated results of operations or tax reporting.
Set forth are the Company's results of operations by reportable segment for the periods indicated.
RESULTS OF OPERATIONS BY REPORTABLE SEGMENT
(In thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31 December 31
----------- -----------
2009 2008 2009 2008
---- ---- ---- ----
Total segment revenues
North America OCD $ 15,788 $ 22,697 $124,749 $ 81,137
North America Subsea 46,836 42,983 158,929 146,105
Latin America 43,739 81,715 229,273 266,974
West Africa 3,261 12,213 104,300 152,877
Middle East 6,205 49,438 88,372 237,523
Asia Pacific/India 37,561 51,133 244,441 223,450
------ ------ ------- -------
Subtotal 153,390 260,179 950,064 1,108,066
------- ------- ------- ---------
Intersegment eliminations
North America OCD (978) - (978) -
North America Subsea (6,074) (7,526) (31,468) (30,713)
Latin America - (650) - (2,724)
Middle East - (1,574) (3,270) (3,641)
--- ------ ------ ------
Subtotal (7,052) (9,750) (35,716) (37,078)
------ ------ ------- -------
Consolidated revenues $146,338 $250,429 $914,348 $1,070,988
======= ======= ======= =========
Income (loss) before
taxes
North America OCD $ (6,260) $ (3,090) $ (1,336) $ (14,963)
North America Subsea 8,907 4,356 34,879 11,262
Latin America (3,609) 2,917 8,216 (9,215)
West Africa (2,682) (14,083) 27,468 (33,470)
Middle East (7,012) (1,900) 8,901 (75,668)
Asia Pacific/India 6,968 11,370 41,319 46,687
Corporate (4,214) (10,492) (26,139) (37,049)
Consolidated income
(loss) before taxes $ (7,902) $(10,922) $ 93,308 $ (112,416)
====== ======= ====== ========
CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
December 31,
------------
2009 2008
---- ----
ASSETS
Current Assets
Cash and cash equivalents $ 344,855 $ 287,669
Restricted cash 1,139 94,516
Marketable securities 30,750 -
Accounts receivable – net of allowance of
$2,765 for 2009 and $12,070 for 2008 160,273 180,018
Unbilled work on uncompleted contracts 92,569 86,011
Contract costs incurred not yet recognized 489 11,982
Deferred income taxes 2,945 7,223
Assets held for sale 16,152 2,181
Prepaid expenses and other 31,596 44,585
------ ------
Total current assets 680,768 714,185
------- -------
Property and Equipment, net 722,819 599,078
------- -------
Other Assets
Marketable securities – long-term 11,097 42,375
Accounts receivable – long-term 12,294 22,246
Deferred charges, net 49,866 70,573
Goodwill 37,388 37,388
Other 9,961 3,508
----- -----
Total other assets 120,606 176,090
------- -------
Total $1,524,193 $1,489,353
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Current maturities of long term debt $3,960 $3,960
Accounts payable 192,008 207,239
Employee-related liabilities 18,079 26,113
Income taxes payable 45,301 38,649
Accrued anticipated contract losses 322 35,055
Other accrued liabilities 15,489 22,275
------ ------
Total current liabilities 275,159 333,291
------- -------
Long-Term Debt 294,366 289,966
Deferred Income Taxes 69,998 64,020
Other Liabilities 15,171 13,266
Commitments and Contingencies - -
Shareholders' Equity
Common stock, $0.01 par value, 150,000
authorized, and 119,989 and 119,650
shares issued at December 31, 2009 and
2008, respectively 1,200 1,197
Additional paid-in capital 513,353 509,345
Retained earnings 468,430 394,699
Treasury stock at cost, 6,130 shares (105,038) (105,038)
Accumulated other comprehensive loss (8,446) (11,393)
------ -------
Total shareholders' equity 869,499 788,810
------- -------
Total $1,524,193 $1,489,353
========= =========
SOURCE Global Industries, Ltd.
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