Published: August 03, 2011
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
June 30
-------
2011 2010
---- ----
Revenues $132,904 $121,768
Cost of operations 140,214 114,585
Gross profit (7,310) 7,183
Loss (gain) on asset disposals and
impairments 2,254 10,214
Selling, general and administrative
expenses 16,893 17,395
------ ------
Operating income (loss) (26,457) (20,426)
Interest income 734 492
Interest expense (2,448) (1,756)
Other income (expense), net 223 (579)
--- ----
Income (loss) before taxes (27,948) (22,269)
Income tax expense (benefits) (1,102) (23,675)
------ -------
Net income (loss) (26,846) 1,406
Less: Net income attributable to
noncontrolling interest 346 --
--- ---
Net income (loss) attributable to
Global Industries, Ltd. $(27,192) $1,406
======== ======
Earnings (Loss) Per Common Share
Basic $(0.24) $0.01
Diluted $(0.24) $0.01
Weighted Average Common Shares
Outstanding
Basic 114,289 113,831
Diluted 114,289 114,126
Other Data
Depreciation and Amortization $11,933 $12,879
Backlog at end of period
Six Months Ended
June 30
-------
2011 2010
---- ----
Revenues $202,921 $228,579
Cost of operations 231,036 225,645
Gross profit (28,115) 2,934
Loss (gain) on asset disposals and
impairments (7,025) 10,788
Selling, general and administrative
expenses 33,833 34,939
------ ------
Operating income (loss) (54,923) (42,793)
Interest income 1,209 733
Interest expense (4,983) (4,659)
Other income (expense), net 1,029 (1,006)
----- ------
Income (loss) before taxes (57,668) (47,725)
Income tax expense (benefits) 2,736 (27,773)
----- -------
Net income (loss) (60,404) (19,952)
Less: Net income attributable to
noncontrolling interest 714 --
--- ---
Net income (loss) attributable to
Global Industries, Ltd. $(61,118) $(19,952)
======== ========
Earnings (Loss) Per Common Share
Basic $(0.54) $(0.18)
Diluted $(0.54) $(0.18)
Weighted Average Common Shares
Outstanding
Basic 114,230 113,595
Diluted 114,230 113,595
Other Data
Depreciation and Amortization $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
(In thousands)
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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