Global Industries, Ltd. Announces Results for the First Quarter of 2011
HOUSTON, May 4, 2011 /PRNewswire/ -- Global Industries, Ltd. (NASDAQ: GLBL) today announced revenues of $70.0 million for the first quarter of 2011 compared to $106.8 million for the first quarter of 2010. Net loss was $33.9 million, or $0.30 per diluted share, for the first quarter of 2011 compared to net loss of $21.4 million, or $0.19 per diluted share, for the first quarter of 2010.
Project awards for the first quarter of 2011 were $147.6 million resulting in a backlog at March 31, 2011 of $248.4 million, an increase of $138.0 million from the March 31, 2010 backlog.
Commenting on the first quarter results, Chief Executive Officer John Reed stated, "Our first quarter results reflect the continued low level of project activity worldwide, as well as the seasonal downturn which is typical for this time of year. We continue to focus on pursuing new project awards and during the first quarter we were awarded the 'Who Dat' project from LLOG in the U.S. Gulf of Mexico. Work on that project should begin in June. During the first quarter, we began work on the second season of a PETRONAS project in Malaysia. The Global 1200 was placed in service in the first quarter and has mobilized to the UAE for its initial project in Dubai. In addition, in the first quarter we finalized the sale of the Cherokee which resulted in a $9.3 million gain."
A conference call will be held at 9:00 a.m. Central Daylight Time on May 5, 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 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 26, 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 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 | ||||||||
March 31 | ||||||||
2011 | 2010 | |||||||
Revenues | $ | 70,017 | $ | 106,811 | ||||
Cost of operations | 90,822 | 111,060 | ||||||
Gross profit (loss) | (20,805) | (4,249) | ||||||
Loss (gain) on asset disposal and impairments | (9,279) | 574 | ||||||
Selling, general and administrative expenses | 16,940 | 17,544 | ||||||
Operating income (loss) | (28,466) | (22,367) | ||||||
Interest income | 475 | 241 | ||||||
Interest expense | (2,535) | (2,903) | ||||||
Other income (expense), net | 806 | (427) | ||||||
Income (loss) before taxes | (29,720) | (25,456) | ||||||
Income tax expense (benefit) | 3,838 | (4,098) | ||||||
Net income (loss) | (33,558) | (21,358) | ||||||
Less: income attributable to noncontrolling interest | 368 | -- | ||||||
Net income (loss) attributable to Global Industries | $ | (33,926) | $ | (21,358) | ||||
Earnings Per Common Share | ||||||||
Basic | $ | (0.30) | $ | (0.19) | ||||
Diluted | (0.30) | (0.19) | ||||||
Weighted Average Common Shares Outstanding | ||||||||
Basic | 114,167 | 113,366 | ||||||
Diluted | 114,167 | 113,366 | ||||||
Other Data | ||||||||
Depreciation and Amortization | $ | 10,951 | $ | 15,075 | ||||
Backlog at end of period | 248,433 | 110,398 | ||||||
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 ended March 31, 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 | |||||||
March 31 | |||||||
2011 | 2010 | ||||||
Total segment revenues | |||||||
Construction and Installation | $ | 54,252 | $ | 75,104 | |||
Other Offshore Services | 15,765 | 31,707 | |||||
Consolidated revenues | $ | 70,017 | $ | 106,811 | |||
Income (loss) before taxes | |||||||
Construction and Installation | $ | (13,716) | $ | (9,365) | |||
Other Offshore Services | (9,557) | (6,719) | |||||
Corporate | (6,447) | (9,372) | |||||
Consolidated income (loss) before taxes | $ | (29,720) | $ | (25,456) | |||
CONSOLIDATED BALANCE SHEETS (In thousands) | ||||||||||
March 31 | December 31 | |||||||||
2011 | 2010 | |||||||||
(unaudited) | ||||||||||
ASSETS | ||||||||||
Current Assets | ||||||||||
Cash and cash equivalents | $ | 244,653 | $ | 349,609 | ||||||
Restricted cash | 27,906 | 4,297 | ||||||||
Marketable securities | 22,005 | -- | ||||||||
Accounts receivable – net of allowance of $1,205 for 2011 | ||||||||||
and $2,767 for 2010 | 49,499 | 40,693 | ||||||||
Unbilled work on uncompleted contracts | 43,025 | 56,152 | ||||||||
Contract costs incurred not yet recognized | 8,712 | 15,052 | ||||||||
Deferred income taxes | 2,873 | 4,610 | ||||||||
Assets held for sale | 9,500 | 16,719 | ||||||||
Prepaid expenses and other | 27,246 | 34,099 | ||||||||
Total current assets | 435,419 | 521,231 | ||||||||
Property and Equipment, net | 804,477 | 784,719 | ||||||||
Other Assets | ||||||||||
Accounts receivable – long-term | 8,687 | 8,679 | ||||||||
Deferred charges, net | 22,163 | 20,429 | ||||||||
Other | 10,173 | 8,683 | ||||||||
Total other assets | 41,023 | 37,791 | ||||||||
Total | $ | 1,280,919 | $ | 1,343,741 | ||||||
LIABILITIES AND EQUITY | ||||||||||
Current Liabilities | ||||||||||
Current maturities of long term debt | $ | 3,960 | $ | 3,960 | ||||||
Accounts payable | 98,139 | 109,394 | ||||||||
Employee-related liabilities | 17,388 | 17,935 | ||||||||
Income taxes payable | 23,090 | 26,618 | ||||||||
Accrued anticipated contract loss | 4,019 | 5,782 | ||||||||
Other accrued liabilities | 11,491 | 31,721 | ||||||||
Total current liabilities | 158,087 | 195,410 | ||||||||
Long-Term Debt | 299,788 | 299,405 | ||||||||
Deferred Income Taxes | 52,773 | 49,995 | ||||||||
Other Liabilities | 23,306 | 18,242 | ||||||||
Commitments and Contingencies | -- | -- | ||||||||
Equity | ||||||||||
Common stock, $0.01 par value, 250,000 shares authorized, and 115,936 and 115,504 shares issued at March 31, 2011 and December 31, 2010, respectively | 1,159 | 1,155 | ||||||||
Additional paid-in capital | 414,731 | 414,895 | ||||||||
Retained earnings | 338,842 | 372,768 | ||||||||
Accumulated other comprehensive loss | (8,776) | (8,770) | ||||||||
Shareholders' equity—Global Industries, Ltd. | 745,956 | 780,048 | ||||||||
Noncontrolling interest | 1,009 | 641 | ||||||||
Total equity | 746,965 | 780,689 | ||||||||
Total | $ | 1,280,919 | $ | 1,343,741 | ||||||
SOURCE Global Industries, Ltd.
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