CARLYSS, La., Feb. 25 /PRNewswire-FirstCall/ -- Global Industries, Ltd. (Nasdaq: GLBL) announced revenues of $250.4 million for the fourth quarter of 2008 compared to $263.0 million in the fourth quarter of 2007. Net loss was $27.9 million, or $0.25 per diluted share, for the fourth quarter of 2008. This compares to net income of $32.9 million, or $0.28 per diluted share, in the fourth quarter of 2007.
Revenues were $1.07 billion in fiscal year 2008 compared to $992.5 million in fiscal year 2007. Net loss was $117.4 million, or $1.03 per diluted share, in fiscal year 2008. This compares to net income of $160.0 million, or $1.36 per diluted share, in fiscal year 2007.
Commenting on the fourth quarter results, Chairman and Chief Executive Officer John A. Clerico stated, "Our recovery plan is underway at Global. During the fourth quarter, we took actions to reduce costs, conserve our cash and increase our project order backlog to $519.6 million. These actions produced positive impact during the quarter and will continue to do so in future quarters. However, the impact of these actions was more than offset during the quarter by idle vessel costs resulting from a decline in project revenues in North America OCD, West Africa and the Middle East together with added costs to complete the Camarupim project in Brazil caused by weather, mechanical downtime and the provision for anticipated additional costs as a result of future schedule delays."
Clerico continued, "We have re-dedicated ourselves to winning business, increasing our project order backlog and executing projects well for our customers. Our plan for this year is to scale our costs to match a realistic forecast of our revenues. Despite the risks and uncertainties we face, we are confident that our recovery plan will restore Global to profitability and growth."
Selling, general and administrative expenses of $21.9 million for the fourth quarter of 2008 decreased by $0.6 million over the same quarter last year, primarily due to company-wide cost control activities.
Interest income of $1.8 million for the fourth quarter of 2008 decreased by $6.9 million over the same quarter last year primarily due to decreased cash balances and lower interest rates.
The provision of $17.2 million income taxes expense on loss before taxes of $(10.7) million for the 2008 fourth quarter was primarily due to losses that could not be tax effected and lower margins in tax jurisdictions with a deemed profit tax regime where tax is calculated as a percentage of revenue.
During the fourth quarter of 2008, the Company booked $372.9 million of net new work resulting in a backlog of $519.6 million as of December 31, 2008.
A conference call will be held at 9:00 a.m. Central Standard Time on February 26, 2009. 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, where it will also be archived for anytime reference until March 13, 2009.
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.
Set forth are the Company's results of operations for the periods indicated.
(In thousands, except earnings per share)
-----------------------------------------
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- -------------------
2008 2007 2008 2007
--------- -------- -------- --------
Results of Operations
Revenues $ 250,429 $ 263,028 $ 1,070,988 $ 992,513
Cost of operations 237,330 214,712 1,084,581 719,768
--------- ---------- ---------- ---------
Gross profit (loss) 13,099 48,316 (13,593) 272,745
Loss (gain) on asset
disposals and impairments 1,228 (2,762) 856 (4,079)
Selling, general and
administrative expenses 21,925 22,498 95,364 81,275
--------- ---------- ---------- ---------
Operating income (loss) (10,054) 28,580 (109,813) 195,549
--------- ---------- ---------- ---------
Interest income 1,768 8,706 14,477 27,966
Interest expense (3,650) (4,948) (13,624) (13,439)
Other income (expense), net 1,225 893 (641) 3,826
--------- ---------- ---------- ---------
Income (loss) before taxes (10,711) 33,231 (109,601) 213,902
Income taxes 17,213 331 7,760 53,942
--------- ---------- ---------- ---------
Net income (loss) $ (27,924) $ 32,900 $ (117,361) $ 159,960
========= ========== ========== =========
Earnings (Loss) Per
Common Share
Basic $ (0.25) $ 0.29 $ (1.03) $ 1.38
Diluted $ (0.25) $ 0.28 $ (1.03) $ 1.36
Weighted Average Common
Shares Outstanding
Basic 112,190 115,044 113,647 116,137
Diluted 112,190 116,634 113,647 117,819
Other Data
Depreciation and
amortization $ 16,228 $ 16,658 $ 64,348 $ 61,839
Backlog at End of Period $ 519,652 $713,555
Set forth are the Company's results of operations by reportable segment for the periods indicated.
RESULTS OF OPERATIONS BY REPORTABLE SEGMENT
(In thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- -------------------
2008 2007 2008 2007
--------- -------- -------- --------
Total segment revenues
North America OCD $ 22,697 $ 26,403 $ 81,137 $ 106,478
North America Subsea 42,983 32,683 146,105 150,407
Latin America 81,715 52,730 266,974 226,999
West Africa 12,213 30,775 152,877 184,651
Middle East 49,438 101,362 237,523 186,317
Asia Pacific/India 51,133 24,253 223,450 181,187
--------- ---------- ---------- ---------
Subtotal 260,179 268,206 1,108,066 1,036,039
--------- ---------- ---------- ---------
Intersegment eliminations
North America OCD -- -- -- (7,726)
North America Subsea (7,526) (4,356) (30,713) (17,867)
Latin America (650) (322) (2,724) (322)
Middle East (1,574) (500) (3,641) (17,466)
Asia Pacific/India -- -- -- (145)
--------- ---------- ----------- ----------
Subtotal (9,750) (5,178) (37,078) (43,526)
--------- ---------- ----------- ----------
Consolidated revenues $ 250,429 $ 263,028 $ 1,070,988 $ 992,513
========= ========== ============ =========
Income (loss) before taxes
North America OCD $ (3,803) $2,517 $ (17,748) $ 12,631
North America Subsea 3,365 11,454 7,377 59,849
Latin America 684 22,503 (17,938) 97,604
West Africa (16,271) (10,095) (42,035) (14,952)
Middle East (3,178) 14,541 (81,633) 29,568
Asia Pacific/India 9,654 (13,719) 40,923 11,473
Corporate (1,162) 6,030 1,453 17,729
--------- ---------- ----------- ----------
Consolidated income (loss)
before taxes $ (10,711) $ 33,231 $ (109,601) $ 213,902
========= ========== =========== ==========
CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31,
2008 2007
ASSETS
Current Assets
Cash and cash equivalents $ 287,669 $ 723,450
Restricted cash 94,516 1,121
Marketable securities -- 99,935
Accounts receivable - net of
allowance of $12,070 for 2008
and $1,278 for 2007 180,018 167,469
Unbilled work on uncompleted contracts 86,011 106,716
Contract costs incurred not yet recognized 11,982 10,821
Deferred income taxes 7,223 3,827
Assets held for sale 2,181 1,002
Prepaid expenses and other 44,585 27,875
---------- ---------
Total current assets 714,185 1,142,216
---------- ---------
Property and Equipment, net 593,522 349,549
---------- ---------
Other Assets
Marketable securities - long-term 42,375 --
Accounts receivable - long-term 22,246 9,315
Deferred charges, net 72,370 43,045
Goodwill 37,388 37,388
Other 3,508 8,285
---------- ---------
Total other assets 177,887 98,033
Total $ 1,485,594 $ 1,589,798
========== =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Current maturities of long term debt $ 3,960 $ 3,960
Accounts payable 207,239 169,034
Employee-related liabilities 26,113 28,366
Income taxes payable 38,649 39,683
Accrued interest payable 5,613 5,827
Advance billings on uncompleted contracts 4,609 36,691
Accrued anticipated contract losses 35,055 --
Other accrued liabilities 12,053 15,638
---------- ---------
Total current liabilities 333,291 299,199
---------- ---------
Long-Term Debt 386,380 390,340
Deferred Income Taxes 28,941 35,617
Other Liabilities 13,266 11,050
Commitments and Contingencies -- --
Shareholders' Equity
Common stock, $0.01 par value, 150,000
authorized, and 119,650 and 118,001
shares issued at December 31, 2008 and
2007, respectively 1,197 1,180
Additional paid-in capital 441,105 418,366
Retained earnings 397,845 515,206
Treasury stock at cost, 6,130 in 2008
and 2,904 in 2007 (105,038) (77,257)
Accumulated other comprehensive loss (11,393) (3,903)
---------- ---------
Total shareholders' equity 723,716 853,592
---------- ---------
Total $ 1,485,594 $ 1,589,798
========== =========
