Global Industries, Ltd. Announces Results for the First Quarter of 2010

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May 05, 2010, 09:30 ET

CARLYSS, La., May 5 /PRNewswire-FirstCall/ -- Global Industries, Ltd. (Nasdaq: GLBL) today announced revenues of $106.8 million for the first quarter of 2010 compared to $269.5 million for the first quarter of 2009. Net loss was $21.4 million, or $0.19 per diluted share, for the first quarter of 2010 compared to net income of $19.0 million, or $0.17 per diluted share, for the first quarter of 2009.

Commenting on the first quarter results, Chief Executive Officer John Reed stated, "Our industry continues to be adversely affected by the downturn of the worldwide economy and our first quarter results are reflective of the low level of project activity worldwide. Also contributing to the quarter's negative result is the winter seasonal downturn associated with North American project activity. Bookings for the first quarter were $113.5 million and our backlog stood at $110.4 million at March 31, 2010. We continue to focus on pursuing new project awards and preparing for the Global 1200 to enter our fleet in the third quarter of 2010."

A conference call will be held at 9:00 a.m. Central Standard Time on May 6, 2010. 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 First 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 May 27, 2010.

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. 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 our Company's results of operations for the periods indicated.


RESULTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)

		Three Months Ended
		March 31,
			2010			2009

Revenues		$		106,811	$	269,465
Cost of operations				111,060		224,098
Gross profit (loss)				(4,249)		45,367
Loss (gain) on asset disposal and impairments				574		(4,808)
Selling, general and administrative expenses				17,544		19,871
Operating income (loss)				(22,367)		30,304
Interest income Interest expense Other income (expense), net				241		574
				(2,903)		(3,493)
				(427)		2,078
Income (loss) before taxes				(25,456)		29,463
Income tax expense (benefits)				(4,098)		10,432
Net income (loss)		$		(21,358)	$	19,031

Earnings Per Common Share
	Basic	$		(0.19)	$	0.17
	Diluted			(0.19)		0.17

Weighted Average Common Shares Outstanding
	Basic			113,366		113,671
	Diluted			113,366		114,062

Other Data
	Depreciation and Amortization	$		15,075	$	17,603
	Backlog at end of period			110,398		394,033

Effective January 1, 2010, we combined our Middle East and Asia Pacific/India segments into the Asia Pacific/Middle East segment. This change has been reflected as a retrospective change to the financial information for the three months ended March 31, 2009 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
		March 31,
		2010		2009
Total segment revenues
North America OCD	$	3,898	$	5,319
North America Subsea		27,831		31,552
Latin America		42,841		76,316
West Africa		--		65,132
Asia Pacific/Middle East		33,634		92,158
Subtotal		108,204		270,477

Intersegment eliminations
North America Subsea		(1,393)		(1,012)
Subtotal		(1,393)		(1,012)

Consolidated revenues	$	106,811	$	269,465

Income (loss) before taxes
North America OCD	$	(7,217)	$	(12,238)
North America Subsea		(3,065)		11,988
Latin America		(9,069)		6,022
West Africa		(1,758)		17,778
Asia Pacific/Middle East		4,444		13,701
Corporate		(8,791)		(7,788)
Consolidated income (loss) before taxes	$	(25,456)	$	29,463

CONSOLIDATED BALANCE SHEETS (In thousands)
						March 31,		December 31,
						2010		2009
						(unaudited)
ASSETS
Current Assets
			Cash and cash equivalents			$	307,022	$	344,855
			Restricted cash				4,014		1,139
			Marketable securities				30,750		30,750
			Accounts receivable – net of allowance of $1,816 for 2010
	and $2,765 for 2009						114,501		160,273
			Unbilled work on uncompleted contracts				67,543		92,569
			Contract costs incurred not yet recognized				3,001		489
			Deferred income taxes				2,518		2,945
			Assets held for sale				20,671		16,152
			Prepaid expenses and other				37,405		31,596
				Total current assets			587,425		680,768
Property and Equipment, net							743,426		722,819
Other Assets
			Marketable securities – long-term				--		11,097
			Accounts receivable – long-term				13,841		12,294
			Deferred charges, net				45,719		49,866
			Goodwill				37,388		37,388
			Other				8,648		9,961
				Total other assets			105,596		120,606
					Total	$	1,436,447	$	1,524,193


LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
		Current maturities of long term debt				$	3,960	$	3,960
		Accounts payable					132,649		192,008
		Employee-related liabilities					16,590		18,079
		Income taxes payable					41,898		45,301
		Other accrued liabilities					11,951		15,811
				Total current liabilities			207,048		275,159

Long-Term Debt							294,581		294,366
Deferred Income Taxes							67,891		69,998
Other Liabilities							16,227		15,171

Commitments and Contingencies							--		--

Shareholders' Equity
			Common stock, $0.01 par value, 150,000 shares authorized, and 121,028 and 119,989 shares issued at March 31, 2010 and December 31, 2009, respectively				1,210		1,200
			Additional paid-in capital				516,092		513,353
			Retained earnings				447,072		468,430
			Treasury stock at cost, 6,130 shares				(105,038)		(105,038)
			Accumulated other comprehensive loss				(8,636)		(8,446)
				Total shareholders' equity			850,700		869,499
					Total	$	1,436,447	$	1,524,193