Global Industries, Ltd. Announces Results for the Second Quarter of 2011
HOUSTON, Aug. 3, 2011 /PRNewswire/ -- Global Industries, Ltd. (NASDAQ: GLBL) today announced revenues of $132.9 million for the second quarter of 2011 compared to $121.8 million for the second quarter of 2010. Net loss was $27.2 million, or $0.24 per diluted share, for the second quarter of 2011 compared to net income of $1.4 million, or $0.01 per diluted share, for the second quarter of 2010.
For the six months ended June 30, 2011, the Company reported revenue, net loss and loss per diluted share of $202.9 million, $61.1 million and $0.54, respectively, as compared to revenue, net loss and loss per diluted share of $228.6 million, $20.0 million and $0.18, respectively, for the six months ended June 30, 2010.
Included in the net loss for both the 2011 second quarter and six months ended June 30, 2011 are tax valuation allowances related to foreign tax credits and various deferred tax assets of $15.1 million, or $0.13 cents per diluted share.
Project awards for the second quarter of 2011 were $85.7 million resulting in a backlog at June 30, 2011 of $201.3 million.
Commenting on the second quarter results, Chief Executive Officer John Reed stated, "Our results continue to be affected by the downturn in the marine construction industry and reflect the continued low level of project activity worldwide. We continue to focus on pursuing new project awards and the bidding activity has increased for projects in 2012 and beyond. During the second quarter, the Global 1200 completed its initial project in Dubai, performing above expectations, and is currently mobilized for the U.S. Gulf of Mexico, where we expect to put it to work later in the year. Also, in July, we booked a significant project in Mexico which will utilize the Global 1200, beginning in late 2011 and continuing into 2012."
The Company also announced that subsequent to the quarter end, it sold a 40% interest in its two Malaysia operating entities to Puncak Oil and Gas Sdn. Bhd. for a combined consideration of $23.6 million, with a one year option to purchase the remaining 60% interest for additional consideration of $35.4 million. As a part of this transaction, the Company reacquired a 30% interest in its Malaysian vessel ownership company from its former Malaysian partner, which comprised a portion of the 40% interest acquired by Puncak Oil and Gas.
A conference call will be held at 9:00 a.m. Central Standard Time on August 4, 2011. 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 Second 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 August 25, 2011.
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, changes in competitive factors, and other factors described in the Company's most recent annual and quarterly reports, including our Annual Report on Form 10-K. 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 |
Six Months Ended |
|||||||||||||||||
June 30 |
June 30 |
|||||||||||||||||
2011 |
2010 |
2011 |
2010 |
|||||||||||||||
Revenues |
$ |
132,904 |
$ |
121,768 |
$ |
202,921 |
$ |
228,579 |
||||||||||
Cost of operations |
140,214 |
114,585 |
231,036 |
225,645 |
||||||||||||||
Gross profit |
(7,310) |
7,183 |
(28,115) |
2,934 |
||||||||||||||
Loss (gain) on asset disposals and impairments |
2,254 |
10,214 |
(7,025) |
10,788 |
||||||||||||||
Selling, general and administrative expenses |
16,893 |
17,395 |
33,833 |
34,939 |
||||||||||||||
Operating income (loss) |
(26,457) |
(20,426) |
(54,923) |
(42,793) |
||||||||||||||
Interest income |
734 |
492 |
1,209 |
733 |
||||||||||||||
Interest expense |
(2,448) |
(1,756) |
(4,983) |
(4,659) |
||||||||||||||
Other income (expense), net |
223 |
(579) |
1,029 |
(1,006) |
||||||||||||||
Income (loss) before taxes |
(27,948) |
(22,269) |
(57,668) |
(47,725) |
||||||||||||||
Income tax expense (benefits) |
(1,102) |
(23,675) |
2,736 |
(27,773) |
||||||||||||||
Net income (loss) |
(26,846) |
1,406 |
(60,404) |
(19,952) |
||||||||||||||
Less: Net income attributable to noncontrolling interest |
346 |
-- |
714 |
-- |
||||||||||||||
Net income (loss) attributable to Global Industries, Ltd. |
$ |
(27,192) |
$ |
1,406 |
$ |
(61,118) |
$ |
(19,952) |
||||||||||
Earnings (Loss) Per Common Share |
||||||||||||||||||
Basic |
$ |
(0.24) |
$ |
0.01 |
$ |
(0.54) |
$ |
(0.18) |
||||||||||
Diluted |
$ |
(0.24) |
$ |
0.01 |
$ |
(0.54) |
$ |
(0.18) |
||||||||||
Weighted Average Common Shares Outstanding |
||||||||||||||||||
Basic |
114,289 |
113,831 |
114,230 |
113,595 |
||||||||||||||
Diluted |
114,289 |
114,126 |
114,230 |
113,595 |
||||||||||||||
Other Data |
||||||||||||||||||
Depreciation and Amortization |
$ |
11,933 |
$ |
12,879 |
$ |
22,884 |
$ |
27,954 |
||||||||||
Backlog at end of period |
$ |
201,252 |
$ |
247,166 |
||||||||||||||
In 2010, we began transitioning the operations of our company from a regional structure to a more centralized structure that focuses on global opportunities for our vessels. As a result, effective January 1, 2011, we have restructured our reporting segments from geographic regions to two new project segments: Construction and Installation and Other Offshore Services. This change has been reflected as a retrospective change to the financial information for the three months and six months ended June 30, 2010 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 |
Six Months Ended |
|||||||||||
June 30 |
June 30 |
|||||||||||
2011 |
2010 |
2011 |
2010 |
|||||||||
(In thousands) |
||||||||||||
Total segment revenues |
||||||||||||
Construction and Installation |
$ |
106,889 |
$ |
77,961 |
$ |
161,141 |
$ |
153,065 |
||||
Other Offshore Services |
26,015 |
43,807 |
41,780 |
75,514 |
||||||||
Consolidated revenues |
$ |
132,904 |
$ |
121,768 |
$ |
202,921 |
$ |
228,579 |
||||
Income (loss) before taxes |
||||||||||||
Construction and Installation |
$ |
(18,290) |
$ |
(8,886) |
$ |
(32,006) |
$ |
(23,158) |
||||
Other Offshore Services |
(3,099) |
(6,455) |
(12,656) |
(8,267) |
||||||||
Corporate |
(6,559) |
(6,928) |
(13,006) |
(16,300) |
||||||||
Consolidated income (loss) before taxes |
$ |
(27,948) |
$ |
(22,269) |
$ |
(57,668) |
$ |
(47,725) |
||||
CONSOLIDATED BALANCE SHEETS |
|||||||||||
June 30 |
December 31 |
||||||||||
2011 |
2010 |
||||||||||
(unaudited) |
|||||||||||
ASSETS |
|||||||||||
Current Assets |
|||||||||||
Cash and cash equivalents |
$ |
186,675 |
$ |
349,609 |
|||||||
Restricted cash |
27,952 |
4,297 |
|||||||||
Marketable securities |
22,763 |
-- |
|||||||||
Accounts receivable – net of allowance of $1,048 for 2011 |
|||||||||||
and $2,767 for 2010 |
62,529 |
40,693 |
|||||||||
Unbilled work on uncompleted contracts |
86,119 |
56,152 |
|||||||||
Contract costs incurred not yet recognized |
14,959 |
15,052 |
|||||||||
Deferred income taxes |
3,130 |
4,610 |
|||||||||
Assets held for sale |
1,510 |
16,719 |
|||||||||
Prepaid expenses and other |
27,950 |
34,099 |
|||||||||
Total current assets |
433,587 |
521,231 |
|||||||||
Property and Equipment, net |
822,929 |
784,719 |
|||||||||
Other Assets |
|||||||||||
Marketable securities – long-term |
7,173 |
-- |
|||||||||
Accounts receivable – long-term |
8,687 |
8,679 |
|||||||||
Deferred charges, net |
22,761 |
20,429 |
|||||||||
Other |
10,752 |
8,683 |
|||||||||
Total other assets |
49,373 |
37,791 |
|||||||||
Total |
$ |
1,305,889 |
$ |
1,343,741 |
|||||||
LIABILITIES AND EQUITY |
|||||||||||
Current Liabilities |
|||||||||||
Current maturities of long term debt |
$ |
3,960 |
$ |
3,960 |
|||||||
Accounts payable |
142,750 |
109,394 |
|||||||||
Employee-related liabilities |
19,263 |
17,935 |
|||||||||
Income taxes payable |
20,823 |
26,618 |
|||||||||
Accrued anticipated contract loss |
292 |
5,782 |
|||||||||
Other accrued liabilities |
21,456 |
31,721 |
|||||||||
Total current liabilities |
208,544 |
195,410 |
|||||||||
Long-Term Debt |
302,180 |
299,405 |
|||||||||
Deferred Income Taxes |
52,517 |
49,995 |
|||||||||
Other Liabilities |
21,322 |
18,242 |
|||||||||
Commitments and Contingencies |
-- |
-- |
|||||||||
Equity |
|||||||||||
Common stock, $0.01 par value, 250,000 shares authorized, and 115,950 and 115,504 shares issued at June 30, 2011 and December 31, 2010, respectively |
1,160 |
1,155 |
|||||||||
Additional paid-in capital |
415,983 |
414,895 |
|||||||||
Retained earnings |
311,650 |
372,768 |
|||||||||
Accumulated other comprehensive loss |
(8,822) |
(8,770) |
|||||||||
Shareholders' equity—Global Industries, Ltd. |
719,971 |
780,048 |
|||||||||
Noncontrolling interest |
1,355 |
641 |
|||||||||
Total equity |
721,326 |
780,689 |
|||||||||
Total |
$ |
1,305,889 |
$ |
1,343,741 |
|||||||
SOURCE Global Industries, Ltd.
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