CORRECTION: Global Industries, Ltd. Announces Results for the Fourth Quarter and Year End 2010
(Corrected for Income Tax Valuation Allowance)
HOUSTON, Feb. 24, 2011 /PRNewswire/ -- Global Industries, Ltd. (Nasdaq: GLBL) today announced results for the fourth quarter and year ended December 31, 2010. Revenues were $150.0 million for the fourth quarter of 2010 compared to $146.3 million for the fourth quarter of 2009. Net loss was $47.9 million, or $0.42 per diluted share, for the fourth quarter of 2010 compared to a net loss of $5.3 million, or $0.05 per diluted share, for the fourth quarter of 2009.
Included in the fourth quarter results are $37.5 million of net losses on asset disposals/impairments predominately in our Asia Pacific/Middle East and North America OCD segments, a $7.9 million impairment of the leasehold improvements and deferred dry-dock costs related to the decision to terminate the lease of a chartered vessel, and $2.3 million of startup costs associated with preparing the Global 1200 for use. Also included in the fourth quarter results is a charge to income taxes of $12.9 million for a valuation allowance on a net operating loss carry forward related to our Mexico operations. Excluding these items, net income was $0.9 million or $0.01 per diluted share.
For fiscal year 2010, the Company reported revenues, net loss and loss per diluted share of $568.1 million, $95.7 million and $0.84, respectively, as compared to revenue, net income and earnings per diluted share of $914.3 million, $73.7 million and $0.64, respectively, for fiscal year 2009.
Included in the 2010 results is a $37.4 million goodwill impairment, $25.0 million of net losses on asset disposals/impairments, a $7.9 million impairment of the leasehold improvements and deferred dry-dock costs related to the lease cancellation of a chartered vessel, $2.3 million of Global 1200 start up costs, $1.0 million of relocation and severance costs, and a charge to income taxes of $12.9 million for a valuation allowance on a net operating loss carry forward related to our Mexico operations. Excluding these items, net loss was $30.8 million or $0.27 per diluted share.
Project awards for the fourth quarter of 2010 were $46.3 million resulting in a backlog at December 31, 2010 of $170.8 million, an increase of $67.0 million from the December 31, 2009 backlog.
Commenting on the fourth quarter results, Chief Executive Officer John B. Reed stated, "During the quarter, we completed a project in Malaysia, a project in Indonesia, and our DSV charter project in Brazil with positive results. Work continued on the two projects in Mexico as planned. However, idle vessel costs associated with the low level of project activity worldwide as well as the winter seasonal downturn have offset these project improvements."
A conference call will be held at 9:00 a.m. Central Standard Time on February 24, 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 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 17, 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, 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.
RESULTS OF OPERATIONS |
|||||||||||||||
(In thousands, except per share amounts) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
Three Months Ended |
Twelve Months Ended |
||||||||||||||
December 31, |
December 31, |
||||||||||||||
2010 |
2009 |
2010 |
2009 |
||||||||||||
Results of Operations |
|||||||||||||||
Revenues |
$ |
150,028 |
$ |
146,338 |
$ |
568,108 |
$ |
914,348 |
|||||||
Cost of operations |
129,912 |
137,692 |
535,264 |
755,301 |
|||||||||||
Gross profit (loss) |
20,116 |
8,646 |
32,844 |
159,047 |
|||||||||||
Goodwill impairment |
-- |
-- |
37,388 |
-- |
|||||||||||
Loss on other asset impairments |
52,662 |
228 |
64,143 |
1,186 |
|||||||||||
Net gain on asset disposal |
(7,289) |
856 |
(31,253) |
(8,351) |
|||||||||||
Selling, general and administrative expenses |
17,923 |
13,530 |
70,333 |
69,165 |
|||||||||||
Operating income (loss) |
(43,180) |
(5,968) |
(107,767) |
97,047 |
|||||||||||
Interest income |
239 |
426 |
1,488 |
2,020 |
|||||||||||
Interest expense |
(2,363) |
(3,083) |
(9,671) |
(13,061) |
|||||||||||
Other income (expense), net |
(824) |
723 |
(555) |
7,302 |
|||||||||||
Income (loss) before taxes |
(46,128) |
(7,902) |
(116,505) |
93,308 |
|||||||||||
Income tax (benefit) expense |
1,282 |
(2,651) |
(21,424) |
19,577 |
|||||||||||
Net income (loss) |
(47,410) |
(5,251) |
(95,081) |
73,731 |
|||||||||||
Less: Net income attributable to noncontrolling interest |
442 |
-- |
581 |
-- |
|||||||||||
Net income (loss) attributable to Global Industries, Ltd. |
$ |
(47,852) |
$ |
(5,251) |
$ |
(95,662) |
$ |
73,731 |
|||||||
Earnings (Loss) Per Common Share |
|||||||||||||||
Basic |
$ |
(0.42) |
$ |
(0.05) |
$ |
(0.84) |
$ |
0.65 |
|||||||
Diluted |
$ |
(0.42) |
$ |
(0.05) |
$ |
(0.84) |
$ |
0.64 |
|||||||
Weighted Average Common Shares Outstanding |
|||||||||||||||
Basic |
114,077 |
112,872 |
113,832 |
112,631 |
|||||||||||
Diluted |
114,077 |
112,872 |
113,832 |
113,125 |
|||||||||||
Other Data |
|||||||||||||||
Depreciation and amortization |
$ |
13,360 |
$ |
13,413 |
$ |
55,487 |
$ |
66,047 |
|||||||
Backlog at End of Period |
$ |
170,809 |
$ |
103,758 |
|||||||||||
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 and twelve months ended December 31, 2009 presented below. This change did not affect our consolidated results of operations or tax reporting.
Set forth are the Company's results of operations by reportable segment for the periods indicated.
RESULTS OF OPERATIONS BY REPORTABLE SEGMENT |
|||||||||
(In thousands) |
|||||||||
(Unaudited) |
|||||||||
Three Months Ended |
Twelve Months Ended |
||||||||
December 31 |
December 31 |
||||||||
2010 |
2009 |
2010 |
2009 |
||||||
Total segment revenues |
|||||||||
North America OCD |
$ |
14,434 |
$ |
15,788 |
$ |
60,280 |
$ |
124,749 |
|
North America Subsea |
32,110 |
46,836 |
134,983 |
158,929 |
|||||
Latin America |
84,159 |
43,739 |
232,621 |
229,273 |
|||||
West Africa |
(943) |
3,261 |
(943) |
104,300 |
|||||
Asia Pacific/Middle East |
32,167 |
43,766 |
165,010 |
329,543 |
|||||
Subtotal |
161,927 |
153,390 |
591,951 |
946,794 |
|||||
Intersegment eliminations |
|||||||||
North America OCD |
(5,510) |
(978) |
(11,412) |
(978) |
|||||
North America Subsea |
(6,389) |
(6,074) |
(12,431) |
(31,468) |
|||||
Subtotal |
(11,899) |
(7,052) |
(23,843) |
(32,446) |
|||||
Consolidated revenues |
$ |
150,028 |
$ |
146,338 |
$ |
568,108 |
$ |
914,348 |
|
Income (loss) before taxes |
|||||||||
North America OCD |
$ |
(41,819) |
$ |
(6,260) |
$ |
(52,422) |
$ |
(1,336) |
|
North America Subsea |
84 |
8,907 |
4,004 |
34,879 |
|||||
Latin America |
(60) |
(3,609) |
(62,498) |
8,216 |
|||||
West Africa |
(1,008) |
(2,682) |
6,162 |
27,468 |
|||||
Asia Pacific/Middle East |
9,454 |
(44) |
25,088 |
50,220 |
|||||
Corporate |
(12,779) |
(4,214) |
(36,839) |
(26,139) |
|||||
Consolidated income (loss) before taxes |
$ |
(46,128) |
$ |
(7,902) |
$ |
(116,505) |
$ |
93,308 |
|
CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||||||||||
December 31, |
|||||||||||||
2010 |
2009 |
||||||||||||
ASSETS |
|||||||||||||
Current Assets |
|||||||||||||
Cash and cash equivalents |
$ |
349,609 |
$ |
344,855 |
|||||||||
Restricted cash |
4,297 |
1,139 |
|||||||||||
Marketable securities |
-- |
30,750 |
|||||||||||
Accounts receivable – net of allowance of $2,767 for 2010 |
|||||||||||||
and $2,765 for 2009 |
40,693 |
160,273 |
|||||||||||
Unbilled work on uncompleted contracts |
56,152 |
92,569 |
|||||||||||
Contract costs incurred not yet recognized |
15,052 |
489 |
|||||||||||
Deferred income taxes |
4,610 |
2,945 |
|||||||||||
Assets held for sale |
16,719 |
16,152 |
|||||||||||
Prepaid expenses and other |
34,099 |
31,596 |
|||||||||||
Total current assets |
521,231 |
680,768 |
|||||||||||
Property and Equipment, net |
784,719 |
722,819 |
|||||||||||
Other Assets |
|||||||||||||
Marketable securities – long-term |
-- |
11,097 |
|||||||||||
Accounts receivable – long-term |
8,679 |
12,294 |
|||||||||||
Deferred charges, net |
20,429 |
49,866 |
|||||||||||
Goodwill |
-- |
37,388 |
|||||||||||
Other |
8,683 |
9,961 |
|||||||||||
Total other assets |
37,791 |
120,606 |
|||||||||||
Total |
$ |
1,343,741 |
$ |
1,524,193 |
|||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||
Current Liabilities |
|||||||||||||
Current maturities of long term debt |
$ |
3,960 |
$ |
3,960 |
|||||||||
Accounts payable |
109,394 |
192,008 |
|||||||||||
Employee-related liabilities |
17,935 |
18,079 |
|||||||||||
Income taxes payable |
26,618 |
45,301 |
|||||||||||
Accrued anticipated contract losses |
5,782 |
322 |
|||||||||||
Other accrued liabilities |
31,721 |
15,489 |
|||||||||||
Total current liabilities |
195,410 |
275,159 |
|||||||||||
Long-Term Debt |
299,405 |
294,366 |
|||||||||||
Deferred Income Taxes |
49,995 |
69,998 |
|||||||||||
Other Liabilities |
18,242 |
15,171 |
|||||||||||
Commitments and Contingencies |
-- |
-- |
|||||||||||
Shareholders' Equity |
|||||||||||||
Common stock, $0.01 par value, 250,000 authorized, and 115,504 and 119,989 shares issued at December 31, 2010 and 2009, respectively |
1,155 |
1,200 |
|||||||||||
Additional paid-in capital |
414,895 |
513,353 |
|||||||||||
Retained earnings |
372,768 |
468,430 |
|||||||||||
Treasury stock at cost, 6,130 shares at December 31, 2009 |
-- |
(105,038) |
|||||||||||
Accumulated other comprehensive loss |
(8,770) |
(8,446) |
|||||||||||
Shareholders' equity—Global Industries, Ltd. |
780,048 |
869,499 |
|||||||||||
Noncontrolling interest |
641 |
-- |
|||||||||||
Total equity |
780,689 |
869,499 |
|||||||||||
Total |
$ |
1,343,741 |
$ |
1,524,193 |
|||||||||
SOURCE Global Industries, Ltd.
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