Global Industries, Ltd. Announces Results for the First Quarter of 2010
CARLYSS, La., May 5 /PRNewswire-FirstCall/ -- Global Industries, Ltd. (Nasdaq: GLBL) today announced revenues of $106.8 million for the first quarter of 2010 compared to $269.5 million for the first quarter of 2009. Net loss was $21.4 million, or $0.19 per diluted share, for the first quarter of 2010 compared to net income of $19.0 million, or $0.17 per diluted share, for the first quarter of 2009.
Commenting on the first quarter results, Chief Executive Officer John Reed stated, "Our industry continues to be adversely affected by the downturn of the worldwide economy and our first quarter results are reflective of the low level of project activity worldwide. Also contributing to the quarter's negative result is the winter seasonal downturn associated with North American project activity. Bookings for the first quarter were $113.5 million and our backlog stood at $110.4 million at March 31, 2010. We continue to focus on pursuing new project awards and preparing for the Global 1200 to enter our fleet in the third quarter of 2010."
A conference call will be held at 9:00 a.m. Central Standard Time on May 6, 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 First 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, where it will also be archived for anytime reference until May 27, 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 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.
Set forth are our Company's results of operations for the periods indicated.
RESULTS OF OPERATIONS |
|||||||||||||
(In thousands, except per share amounts) |
|||||||||||||
(Unaudited) |
|||||||||||||
Three Months Ended |
|||||||||||||
March 31, |
|||||||||||||
2010 |
2009 |
||||||||||||
Revenues |
$ |
106,811 |
$ |
269,465 |
|||||||||
Cost of operations |
111,060 |
224,098 |
|||||||||||
Gross profit (loss) |
(4,249) |
45,367 |
|||||||||||
Loss (gain) on asset disposal and impairments |
574 |
(4,808) |
|||||||||||
Selling, general and administrative expenses |
17,544 |
19,871 |
|||||||||||
Operating income (loss) |
(22,367) |
30,304 |
|||||||||||
Interest income Interest expense Other income (expense), net |
241 |
574 |
|||||||||||
(2,903) |
(3,493) |
||||||||||||
(427) |
2,078 |
||||||||||||
Income (loss) before taxes |
(25,456) |
29,463 |
|||||||||||
Income tax expense (benefits) |
(4,098) |
10,432 |
|||||||||||
Net income (loss) |
$ |
(21,358) |
$ |
19,031 |
|||||||||
Earnings Per Common Share |
|||||||||||||
Basic |
$ |
(0.19) |
$ |
0.17 |
|||||||||
Diluted |
(0.19) |
0.17 |
|||||||||||
Weighted Average Common Shares Outstanding |
|||||||||||||
Basic |
113,366 |
113,671 |
|||||||||||
Diluted |
113,366 |
114,062 |
|||||||||||
Other Data |
|||||||||||||
Depreciation and Amortization |
$ |
15,075 |
$ |
17,603 |
|||||||||
Backlog at end of period |
110,398 |
394,033 |
|||||||||||
Effective January 1, 2010, we combined our Middle East and Asia Pacific/India segments into the Asia Pacific/Middle East segment. This change has been reflected as a retrospective change to the financial information for the three months ended March 31, 2009 presented below. This change did not affect our consolidated results of operations or tax reporting.
Set forth are our Company's results of operations by reportable segment for the periods indicated.
RESULTS OF OPERATIONS BY REPORTABLE SEGMENT |
|||||||
(In thousands) |
|||||||
(Unaudited) |
|||||||
Three Months Ended |
|||||||
March 31, |
|||||||
2010 |
2009 |
||||||
Total segment revenues |
|||||||
North America OCD |
$ |
3,898 |
$ |
5,319 |
|||
North America Subsea |
27,831 |
31,552 |
|||||
Latin America |
42,841 |
76,316 |
|||||
West Africa |
-- |
65,132 |
|||||
Asia Pacific/Middle East |
33,634 |
92,158 |
|||||
Subtotal |
108,204 |
270,477 |
|||||
Intersegment eliminations |
|||||||
North America Subsea |
(1,393) |
(1,012) |
|||||
Subtotal |
(1,393) |
(1,012) |
|||||
Consolidated revenues |
$ |
106,811 |
$ |
269,465 |
|||
Income (loss) before taxes |
|||||||
North America OCD |
$ |
(7,217) |
$ |
(12,238) |
|||
North America Subsea |
(3,065) |
11,988 |
|||||
Latin America |
(9,069) |
6,022 |
|||||
West Africa |
(1,758) |
17,778 |
|||||
Asia Pacific/Middle East |
4,444 |
13,701 |
|||||
Corporate |
(8,791) |
(7,788) |
|||||
Consolidated income (loss) before taxes |
$ |
(25,456) |
$ |
29,463 |
|||
CONSOLIDATED BALANCE SHEETS (In thousands) |
|||||||||||
March 31, |
December 31, |
||||||||||
2010 |
2009 |
||||||||||
(unaudited) |
|||||||||||
ASSETS |
|||||||||||
Current Assets |
|||||||||||
Cash and cash equivalents |
$ |
307,022 |
$ |
344,855 |
|||||||
Restricted cash |
4,014 |
1,139 |
|||||||||
Marketable securities |
30,750 |
30,750 |
|||||||||
Accounts receivable – net of allowance of $1,816 for 2010 |
|||||||||||
and $2,765 for 2009 |
114,501 |
160,273 |
|||||||||
Unbilled work on uncompleted contracts |
67,543 |
92,569 |
|||||||||
Contract costs incurred not yet recognized |
3,001 |
489 |
|||||||||
Deferred income taxes |
2,518 |
2,945 |
|||||||||
Assets held for sale |
20,671 |
16,152 |
|||||||||
Prepaid expenses and other |
37,405 |
31,596 |
|||||||||
Total current assets |
587,425 |
680,768 |
|||||||||
Property and Equipment, net |
743,426 |
722,819 |
|||||||||
Other Assets |
|||||||||||
Marketable securities – long-term |
-- |
11,097 |
|||||||||
Accounts receivable – long-term |
13,841 |
12,294 |
|||||||||
Deferred charges, net |
45,719 |
49,866 |
|||||||||
Goodwill |
37,388 |
37,388 |
|||||||||
Other |
8,648 |
9,961 |
|||||||||
Total other assets |
105,596 |
120,606 |
|||||||||
Total |
$ |
1,436,447 |
$ |
1,524,193 |
|||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||
Current Liabilities |
|||||||||||
Current maturities of long term debt |
$ |
3,960 |
$ |
3,960 |
|||||||
Accounts payable |
132,649 |
192,008 |
|||||||||
Employee-related liabilities |
16,590 |
18,079 |
|||||||||
Income taxes payable |
41,898 |
45,301 |
|||||||||
Other accrued liabilities |
11,951 |
15,811 |
|||||||||
Total current liabilities |
207,048 |
275,159 |
|||||||||
Long-Term Debt |
294,581 |
294,366 |
|||||||||
Deferred Income Taxes |
67,891 |
69,998 |
|||||||||
Other Liabilities |
16,227 |
15,171 |
|||||||||
Commitments and Contingencies |
-- |
-- |
|||||||||
Shareholders' Equity |
|||||||||||
Common stock, $0.01 par value, 150,000 shares authorized, and 121,028 and 119,989 shares issued at March 31, 2010 and December 31, 2009, respectively |
1,210 |
1,200 |
|||||||||
Additional paid-in capital |
516,092 |
513,353 |
|||||||||
Retained earnings |
447,072 |
468,430 |
|||||||||
Treasury stock at cost, 6,130 shares |
(105,038) |
(105,038) |
|||||||||
Accumulated other comprehensive loss |
(8,636) |
(8,446) |
|||||||||
Total shareholders' equity |
850,700 |
869,499 |
|||||||||
Total |
$ |
1,436,447 |
$ |
1,524,193 |
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SOURCE Global Industries, Ltd.
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