CARLYSS, La., Aug. 5 /PRNewswire-FirstCall/ -- Global Industries, Ltd. (Nasdaq: GLBL) announced revenues of $294.8 million for the second quarter of 2009 compared to $300.5 million in the second quarter of 2008. Net income was $45.9 million, or $0.40 per diluted share, for the second quarter of 2009 compared to a loss of $14.1 million, or $0.12 per diluted share, in the second quarter of 2008.
Commenting on the second quarter results, Chairman and Chief Executive Officer John A. Clerico stated, "I am pleased to report that all business segments were profitable for the second quarter, as we are realizing the efforts of our recovery plan."
During the second quarter of 2009, our Company booked $116.4 million of new work resulting in a backlog of $215.6 million as of June 30, 2009. Commenting on the backlog results, John Clerico stated, "We are continuing to bid new projects on a worldwide basis and pursue opportunities with our key relationship customers. Along with these efforts, we will also continue to execute proactive cost control measures to appropriately size our operations."
Revenue for the second quarter of 2009 included the completion of a major pipeline repair and replacement project in Nigeria, pipeline repairs in Mexico, pipeline installation projects in India and Indonesia, the Berri and Qatif pipeline project in Saudi Arabia, and the Camarupim and Mexilhao pipeline projects in Brazil. North America OCD and North America Subsea activity consisting of smaller projects and dive support services also contributed to revenues for the quarter.
Selling, general and administrative expenses of $16.7 million for the second quarter of 2009 decreased by $8.3 million over the same quarter last year, due to continuing company-wide cost control activities, as well as the full recovery of a previously reserved customer balance of approximately $1.3 million. "Improved operating performance has enabled us to be released from cash collateralizing letters of credit issued under our bank credit facility. This resulted in an $81.9 million increase in unrestricted cash for the 2009 second quarter," concluded Clerico.
A conference call will be held at 9:00 a.m. Central Time on August 6, 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 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 our Company's website at www.globalind.com, where it will also be archived for anytime reference until August 28, 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 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. Our Company's shares are traded on The NASDAQ Global Select Market under the symbol "GLBL."
This press release may contain forward-looking statements within the meaning of the federal securities laws. These statements are based on current information and expectations of Global that involve a number of risks, uncertainties, and assumptions. Among the factors that could cause the actual results to differ materially are: Global's level of capital expenditures, worldwide economic conditions, various risks related to international operations, our ability to retain skilled workers, general industry conditions, prices of crude oil and natural gas, our ability to obtain and the timing of new projects and changes in competitive factors. Although we believe that in making such statements our expectations are based on reasonable assumptions, 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.
FSP APB 14-1, "Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)" became effective for our Company beginning January 1, 2009 and is applied retrospectively to all periods presented in this news release.
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,
------------------- -------------------
2009 2008 2009 2008
-------- -------- -------- --------
As As
adjusted adjusted
Revenues $294,827 $300,543 $564,292 $602,008
Cost of operations 229,656 292,707 453,754 539,842
-------- -------- -------- --------
Gross profit 65,171 7,836 110,538 62,166
Loss (gain) on asset
disposals and
impairments (3,715) 151 (8,523) (2,012)
Selling, general and
administrative
expenses 16,689 24,961 36,560 48,000
-------- -------- -------- --------
Operating income
(loss) 52,197 (17,276) 82,501 16,178
Interest income 618 3,470 1,192 10,233
Interest expense (3,729) (2,711) (7,222) (7,937)
Other income (expense),
net 4,492 (2,489) 6,570 (1,632)
-------- -------- -------- --------
Income (loss) before
taxes 53,578 (19,006) 83,041 16,842
Income tax expense
(benefits) 7,645 (4,874) 18,077 4,864
-------- -------- -------- --------
Net income (loss) $ 45,933 $(14,132) $ 64,964 $ 11,978
======== ======== ======== ========
Earnings (Loss) Per
Common Share
Basic $ 0.40 $ (0.12) $ .57 $ .10
Diluted $ 0.40 $ (0.12) $ .57 $ .10
Weighted Average
Common Shares
Outstanding
Basic 112,521 114,260 112,459 113,954
Diluted 114,500 114,260 114,319 116,384
Other Data
Depreciation and
Amortization $ 17,107 $ 15,782 $ 34,710 $30,962
Backlog at end of
period $ 215,637 $ 415,594
During the first quarter of 2009, we discontinued allocation of corporate
stewardship costs to our reportable segments. This change has been
reflected as a retrospective change to the financial information for the
three months and six months ended June 30, 2008 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,
--------------------- -------------------
2009 2008 2009 2008
-------- -------- -------- --------
As As
Adjusted adjusted
Total segment revenues
North America OCD $ 43,630 $ 22,632 $ 48,950 $ 29,572
North America Subsea 34,198 35,681 65,750 59,700
Latin America 73,470 55,578 149,785 125,750
West Africa 36,436 77,123 101,568 117,740
Middle East 28,990 66,938 53,499 152,447
Asia Pacific/India 89,634 49,886 159,447 131,894
-------- -------- -------- --------
Subtotal 306,358 307,838 578,999 617,103
-------- -------- -------- --------
Intersegment eliminations
North America Subsea (10,426) (6,990) (11,437) (13,028)
Middle East (1,105) (305) (3,270) (2,067)
-------- -------- -------- --------
Subtotal (11,531) (7,295) (14,707) (15,095)
-------- -------- -------- --------
Consolidated revenues $294,827 $300,543 $564,292 $602,008
======== ======== ======== ========
Income (loss) before taxes
North America OCD $ 4,260 $ 1,360 $ (7,979) $ (5,912)
North America Subsea 3,717 7,038 15,705 6,384
Latin America 16,445 (12,366) 22,467 7,517
West Africa 15,081 (5,106) 32,859 (9,284)
Middle East 3,254 (9,984) 9,576 9,504
Asia Pacific/India 17,639 10,615 25,018 24,511
Corporate (6,818) (10,563) (14,605) (15,878)
-------- -------- -------- --------
Consolidated income (loss)
before taxes $ 53,578 $(19,006) $ 83,041 $ 16,842
======== ======== ======== ========
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30, December 31,
2009 2008
---------- ----------
As
Adjusted
ASSETS
Current Assets
Cash and cash equivalents $ 374,343 $ 287,669
Restricted cash 1,139 94,516
Accounts receivable - net of allowance of
$1,395 for 2009 and $12,070 for 2008 167,163 180,018
Unbilled work on uncompleted contracts 137,200 86,011
Contract costs incurred not yet recognized 5,545 11,982
Deferred income taxes 2,356 7,223
Assets held for sale 7,171 2,181
Prepaid expenses and other 46,125 44,585
---------- ----------
Total current assets 741,042 714,185
---------- ----------
Property and Equipment, net 647,829 599,078
---------- ----------
Other Assets
Marketable securities - long-term 41,035 42,375
Accounts receivable - long-term 22,609 22,246
Deferred charges, net 58,838 70,573
Goodwill 37,388 37,388
Other 2,926 3,508
---------- ----------
Total other assets 162,796 176,090
---------- ----------
Total $1,551,667 $1,489,353
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Current maturities of long term debt $ 3,960 $ 3,960
Accounts payable 226,031 207,239
Employee-related liabilities 21,159 26,113
Income taxes payable 45,197 38,649
Accrued interest payable 5,738 5,613
Advance billings on uncompleted contracts 7,018 4,609
Accrued anticipated contract losses 9,122 35,055
Other accrued liabilities 8,808 12,053
---------- ----------
Total current liabilities 327,033 333,291
---------- ----------
Long-Term Debt 292,089 289,966
Deferred Income Taxes 62,034 64,020
Other Liabilities 13,466 13,266
Commitments and Contingencies - -
Shareholders' Equity
Common stock, $0.01 par value, 150,000 shares
authorized, and 120,022 and 119,650 shares issued
at June 30, 2009 and December 31, 2008,
respectively 1,200 1,197
Additional paid-in capital 511,557 509,345
Retained earnings 459,664 394,699
Treasury stock at cost, 6,130 shares (105,038) (105,038)
Accumulated other comprehensive loss (10,338) (11,393)
---------- ----------
Total shareholders' equity 857,045 788,810
---------- ----------
Total $1,551,667 $1,489,353
========== ==========
