Global Industries, Ltd. Announces Results for the Third Quarter of 2011
HOUSTON, Nov. 3, 2011 /PRNewswire/ -- Global Industries, Ltd. (NASDAQ: GLBL) today announced revenues of $67.1 million for the third quarter of 2011 compared to $189.5 million for the third quarter of 2010. Net income was $4.5 million, or $0.04 per diluted share, for the third quarter of 2011 compared to net loss of $27.9 million, or $0.24 per diluted share, for the third quarter of 2010.
For the nine months ended September 30, 2011, the Company reported revenue, net loss and loss per diluted share of $270.1 million, $56.6 million and $0.50, respectively, as compared to revenue, net loss and loss per diluted share of $418.1 million, $47.8 million and $0.42, respectively, for the nine months ended September 30, 2010.
During the third quarter of 2011, the Company sold its entire interest in its two Malaysian operating entities to Puncak Oil and Gas Sdn. Bhd. for a combined consideration of $59.0 million resulting in an after tax gain of $47.8 million, or $0.42 per diluted share.
Project awards for the third quarter of 2011 were $127.8 million resulting in a backlog at September 30, 2011 of $228.2 million.
On September 11, 2011, the Company, Technip S.A. ("Technip"), and Apollon Merger Sub B, Inc., a wholly-owned subsidiary of Technip, ("Apollon") entered into an Agreement and Plan of Merger (the "Merger Agreement"), pursuant to which Apollon will merge with and into the Company (the "Merger") with Global surviving the Merger as a wholly-owned subsidiary of Technip. Upon consummation of the Merger, the shares of Global Industries, Ltd. will no longer be traded. As a result of the pending merger with Technip, the Company will not hold a quarterly conference call.
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 |
Nine Months Ended |
|||||||||||||||||
September 30 |
September 30 |
|||||||||||||||||
2011 |
2010 |
2011 |
2010 |
|||||||||||||||
Revenues |
$ |
67,148 |
$ |
189,501 |
$ |
270,069 |
$ |
418,080 |
||||||||||
Cost of operations |
89,926 |
179,707 |
320,962 |
405,352 |
||||||||||||||
Gross profit (loss) |
(22,778) |
9,794 |
(50,893) |
12,728 |
||||||||||||||
Goodwill impairment |
-- |
37,388 |
-- |
37,388 |
||||||||||||||
Loss (gain) on asset disposals and impairments |
(28) |
(23,271) |
(7,053) |
(12,483) |
||||||||||||||
Relocation costs |
-- |
838 |
-- |
838 |
||||||||||||||
Selling, general and administrative expenses |
18,544 |
16,633 |
52,377 |
51,572 |
||||||||||||||
Equity in (earnings) of unconsolidated affiliate |
(3,158) |
-- |
(3,158) |
-- |
||||||||||||||
Operating income (loss) |
(38,136) |
(21,794) |
(93,059) |
(64,587) |
||||||||||||||
Interest income |
44 |
516 |
1,253 |
1,249 |
||||||||||||||
Interest expense |
(1,989) |
(2,649) |
(6,972) |
(7,308) |
||||||||||||||
Gain on sale of investment in subsidiaries |
47,848 |
-- |
47,848 |
-- |
||||||||||||||
Other income (expense), net |
(1,804) |
1,275 |
(775) |
269 |
||||||||||||||
Income (loss) before taxes |
5,963 |
(22,652) |
(51,705) |
(70,377) |
||||||||||||||
Income tax expense (benefits) |
1,491 |
5,067 |
4,227 |
(22,706) |
||||||||||||||
Net income (loss) |
4,472 |
(27,719) |
(55,932) |
(47,671) |
||||||||||||||
Less: Net income attributable to noncontrolling interest |
-- |
139 |
714 |
139 |
||||||||||||||
Net income (loss) attributable to Global Industries, Ltd. |
$ |
4,472 |
$ |
(27,858) |
$ |
(56,646) |
$ |
(47,810) |
||||||||||
Earnings (Loss) Per Common Share |
||||||||||||||||||
Basic |
$ |
0.04 |
$ |
(0.24) |
$ |
(0.50) |
$ |
(0.42) |
||||||||||
Diluted |
$ |
0.04 |
$ |
(0.24) |
$ |
(0.50) |
$ |
(0.42) |
||||||||||
Weighted Average Common Shares Outstanding |
||||||||||||||||||
Basic |
114,334 |
113,959 |
114,267 |
113,721 |
||||||||||||||
Diluted |
114,363 |
113,959 |
114,267 |
113,721 |
||||||||||||||
Other Data |
||||||||||||||||||
Depreciation and Amortization |
$ |
10,533 |
$ |
14,173 |
$ |
33,417 |
42,127 |
|||||||||||
Backlog at end of period |
$ |
228,194 |
$ |
274,538 |
$ |
228,194 |
$ |
274,538 |
||||||||||
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 nine months ended September 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 |
Nine Months Ended |
|||||||||||
September 30 |
September 30 |
|||||||||||
2011 |
2010 |
2011 |
2010 |
|||||||||
(In thousands) |
||||||||||||
Total segment revenues |
||||||||||||
Construction and Installation |
$ |
37,301 |
$ |
144,390 |
$ |
198,442 |
$ |
297,455 |
||||
Other Offshore Services |
29,847 |
45,111 |
71,627 |
120,625 |
||||||||
Consolidated revenues |
$ |
67,148 |
$ |
189,501 |
$ |
270,069 |
$ |
418,080 |
||||
Income (loss) before taxes |
||||||||||||
Construction and Installation |
$ |
13,808 |
$ |
(38,185) |
$ |
(18,198) |
$ |
(61,343) |
||||
Other Offshore Services |
1,734 |
21,848 |
(10,922) |
13,581 |
||||||||
Corporate |
(9,579) |
(6,315) |
(22,585) |
(22,615) |
||||||||
Consolidated income (loss) before taxes |
$ |
5,963 |
$ |
(22,652) |
$ |
(51,705) |
$ |
(70,377) |
||||
CONSOLIDATED BALANCE SHEETS |
|||||||||||
September 30 |
December 31 |
||||||||||
2011 |
2010 |
||||||||||
(unaudited) |
|||||||||||
ASSETS |
|||||||||||
Current Assets |
|||||||||||
Cash and cash equivalents |
$ |
168,472 |
$ |
349,609 |
|||||||
Restricted cash |
16,488 |
4,297 |
|||||||||
Marketable securities |
29,830 |
-- |
|||||||||
Accounts receivable – net of allowance of $1,247 for 2011 |
|||||||||||
and $2,767 for 2010 |
40,696 |
40,693 |
|||||||||
Unbilled work on uncompleted contracts |
44,452 |
56,152 |
|||||||||
Contract costs incurred not yet recognized |
20,072 |
15,052 |
|||||||||
Deferred income taxes |
3,565 |
4,610 |
|||||||||
Assets held for sale |
1,510 |
16,719 |
|||||||||
Prepaid expenses and other |
41,730 |
34,099 |
|||||||||
Total current assets |
366,815 |
521,231 |
|||||||||
Property and Equipment, net |
825,537 |
784,719 |
|||||||||
Other Assets |
|||||||||||
Marketable securities – long-term |
1,535 |
-- |
|||||||||
Accounts receivable – long-term |
8,687 |
8,679 |
|||||||||
Deferred charges, net |
21,248 |
20,429 |
|||||||||
Other |
17,704 |
8,683 |
|||||||||
Total other assets |
49,174 |
37,791 |
|||||||||
Total |
$ |
1,241,526 |
$ |
1,343,741 |
|||||||
LIABILITIES AND EQUITY |
|||||||||||
Current Liabilities |
|||||||||||
Current maturities of long term debt |
$ |
3,960 |
$ |
3,960 |
|||||||
Accounts payable |
75,568 |
109,394 |
|||||||||
Employee-related liabilities |
15,882 |
17,935 |
|||||||||
Income taxes payable |
20,220 |
26,618 |
|||||||||
Accrued anticipated contract loss |
4,315 |
5,782 |
|||||||||
Other accrued liabilities |
17,911 |
31,721 |
|||||||||
Total current liabilities |
137,856 |
195,410 |
|||||||||
Long-Term Debt |
302,651 |
299,405 |
|||||||||
Deferred Income Taxes |
54,660 |
49,995 |
|||||||||
Other Liabilities |
19,943 |
18,242 |
|||||||||
Commitments and Contingencies |
-- |
-- |
|||||||||
Equity |
|||||||||||
Common stock, $0.01 par value, 250,000 shares authorized, and 115,759 and 115,504 shares issued at September 30, 2011 and December 31, 2010, respectively |
1,158 |
1,155 |
|||||||||
Additional paid-in capital |
417,322 |
414,895 |
|||||||||
Retained earnings |
316,122 |
372,768 |
|||||||||
Accumulated other comprehensive loss |
(8,186) |
(8,770) |
|||||||||
Shareholders' equity—Global Industries, Ltd. |
726,416 |
780,048 |
|||||||||
Noncontrolling interest |
-- |
641 |
|||||||||
Total equity |
726,416 |
780,689 |
|||||||||
Total |
$ |
1,241,526 |
$ |
1,343,741 |
|||||||
SOURCE Global Industries, Ltd.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article