Horizon Offshore Reports First Quarter Earnings

Apr 23, 2001, 01:00 ET from Horizon Offshore, Inc.

    HOUSTON, April 23 /PRNewswire Interactive News Release/ --
 Horizon Offshore, Inc. (Nasdaq: HOFF) today reported first quarter net income
 of $2.7 million or $0.12 per share-diluted before an extraordinary charge of
 $0.6 million net of tax, compared with a net loss of $0.3 million or $0.02 per
 share-diluted, for the first quarter of 2000.
     For the first quarter of 2001, Horizon reported gross profit of
 $9.5 million, or 17.6 percent, on contract revenues of $54.1 million, compared
 with gross profit of $1.1 million, or 7.1 percent, on contract revenues of
 $15.9 million last year.  Pre-tax net income of $4.2 million and an income tax
 provision of $1.5 million were recorded for the first quarter of 2001,
 compared with a pre-tax net loss of $2.6 million and income tax benefit of
 $0.9 million in the first quarter of 2000.
     In February 2001, Horizon sold 3,800,000 shares of common stock in a
 secondary offering and received $66.3 million after deducting the underwriting
 discount and expenses.  The Company used $30.0 million to reduce indebtedness
 and plans to use $10.0 million to support a deep water joint venture with Cal
 Dive.  The remainder will be used for general corporate purposes, including
 funding capital expenditures to expand our operating capabilities and
 potential vessel acquisitions.
     The repayment of $30.0 million of debt resulted in a $0.9 million
 ($0.6 million net-of-tax) extraordinary charge for the early extinguishments
 of debt.  In March 2001, Horizon also replaced its revolving credit facility
 with Wells Fargo Bank by entering into a revolving line of credit with a
 syndicate agented by Southwest Bank of Texas.  This resulted in a non-cash
 write-off of $0.2 million recorded as interest expense.
     "We are pleased with the results for the first quarter, which reflect the
 strong performance of our offshore and onshore personnel worldwide and the
 execution of our project management in an extremely competitive environment,"
 said Bill J. Lam, president and chief executive officer.
     "Key industry fundamentals such as jack-up drilling rig utilization,
 natural gas prices, and increased capital spending by oil and gas companies
 continue to support what we believe will be a strong second half of 2001, that
 we also expect to carry through into 2002.  We have positioned Horizon to
 participate in the deep water market segments by forming a joint venture with
 Cal Dive International, Inc. that will conduct deepwater reel pipelaying
 projects in the U.S. Gulf of Mexico.  Reel pipelaying operations will create a
 new revenue base for Horizon in the deepwater market segments, further
 broadening our range of services.  The recent central Gulf of Mexico lease
 sale was held in March and showed a high level of interest by oil and gas
 companies, especially in the shallow water segment.  We are well positioned to
 take advantage of the increasing activity in the shallow water market of the
 Gulf of Mexico," added Lam.
     Horizon Offshore provides marine construction services to the offshore oil
 and gas industry, primarily in the Gulf of Mexico.  The Company's fleet is
 used to perform a wide range of marine construction activities, including
 installation of marine pipelines to transport oil and gas from newly installed
 production platforms and other subsea production systems, and the installation
 and abandonment of production platforms.
     This press release contains certain forward-looking statements within the
 meaning of the Private Securities Litigation Reform Act of 1995, which involve
 known and unknown risks, uncertainties and other factors.  Among the factors
 that could cause actual results to differ materially are: industry conditions
 and volatility; prices of oil and gas; the Company's ability to obtain and the
 timing of new projects; changes in competitive factors and other material
 factors that are described from time to time in the Company's filing with the
 Securities and Exchange Commission.  Actual events, circumstances, effects and
 results may be materially different from the results, performance or
 achievements expressed or implied by the forward-looking statements.
 Consequently, the forward-looking statements contained herein should not be
 regarded as representations by Horizon or any other person that the projected
 outcomes can or will be achieved.
 
 
                           COMPARATIVE TABLES FOLLOW:
                             Horizon Offshore, Inc.
                      Summary Financial and Operating Data
                                  (Unaudited)
                                                        Three Months Ended
                                                             March 31,
                                                       2001            2000
     Income Statement Data                     (In thousands, except share and
                                                          per share data)
 
     Contract revenues                          $     54,056    $     15,906
     Cost of contract revenues                        44,517          14,781
         Gross profit                                  9,539           1,125
     Selling, general and administrative expenses      3,592           2,010
          Operating income (loss)                      5,947            (885)
 
     Other income (expense):
          Interest expense                            (2,062)         (1,768)
          Interest income                                293              99
          Gain (Loss)  Sale of Fixed Assets              (22)            ---
          Other income (expense)                           2              (1)
     Net income (loss) before income taxes,
      extraordinary item and cumulative effect
      of accounting change                             4,158          (2,555)
 
     Income tax provision (benefit)                    1,502            (869)
 
     Net income (loss) before extraordinary item and
      cumulative effect of accounting change    $      2,656    $     (1,686)
     Extraordinary item, pre-payment penalty
      net of $304 income tax                            (568)            ---
     Cumulative effect of accounting change net of
      $743 income tax                                    ---           1,381
     Net income (loss)                          $      2,088    $       (305)
 
     Earnings per share:
     Net income (loss) before extraordinary item
      and cumulative effect of accounting
      change - basic                            $        .13    $      (0.09)
 
     Extraordinary item
                                                $       (.03)   $        ---
     Cumulative effect of accounting change     $        ---    $       0.07
     Net income (loss) per share - basic        $        .10    $      (0.02)
 
     Net income (loss) before extraordinary
      item and cumulative effect of accounting
      change - diluted                          $        .12    $      (0.09)
 
     Extraordinary item                         $       (.02)   $        ---
     Cumulative effect of accounting change     $        ---    $       0.07
     Net income (loss) per share - diluted      $        .10    $      (0.02)
 
     Shares used in computing net income (loss)
      per share - basic                           20,442,650      18,804,379
     Shares used in computing net income (loss)
      per share - diluted                         21,506,215      18,804,379
 
     Other Non-GAAP Financial Data:
     EBITDA(A)                                  $      8,744    $        681
 
     Other Financial Data:
     Depreciation and amortization              $      2,817    $      1,567
     Capital expenditures                              2,646           3,932
 
     (A)  Horizon calculates EBITDA (earnings before interest, income taxes,
          depreciation and amortization) as net income or loss plus income
          taxes, net interest expense, depreciation and amortization.  EBITDA
          is a supplemental financial measurement used by Horizon and investors
          in the marine construction industry in the evaluation of its
          business.
 
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SOURCE Horizon Offshore, Inc.
    HOUSTON, April 23 /PRNewswire Interactive News Release/ --
 Horizon Offshore, Inc. (Nasdaq: HOFF) today reported first quarter net income
 of $2.7 million or $0.12 per share-diluted before an extraordinary charge of
 $0.6 million net of tax, compared with a net loss of $0.3 million or $0.02 per
 share-diluted, for the first quarter of 2000.
     For the first quarter of 2001, Horizon reported gross profit of
 $9.5 million, or 17.6 percent, on contract revenues of $54.1 million, compared
 with gross profit of $1.1 million, or 7.1 percent, on contract revenues of
 $15.9 million last year.  Pre-tax net income of $4.2 million and an income tax
 provision of $1.5 million were recorded for the first quarter of 2001,
 compared with a pre-tax net loss of $2.6 million and income tax benefit of
 $0.9 million in the first quarter of 2000.
     In February 2001, Horizon sold 3,800,000 shares of common stock in a
 secondary offering and received $66.3 million after deducting the underwriting
 discount and expenses.  The Company used $30.0 million to reduce indebtedness
 and plans to use $10.0 million to support a deep water joint venture with Cal
 Dive.  The remainder will be used for general corporate purposes, including
 funding capital expenditures to expand our operating capabilities and
 potential vessel acquisitions.
     The repayment of $30.0 million of debt resulted in a $0.9 million
 ($0.6 million net-of-tax) extraordinary charge for the early extinguishments
 of debt.  In March 2001, Horizon also replaced its revolving credit facility
 with Wells Fargo Bank by entering into a revolving line of credit with a
 syndicate agented by Southwest Bank of Texas.  This resulted in a non-cash
 write-off of $0.2 million recorded as interest expense.
     "We are pleased with the results for the first quarter, which reflect the
 strong performance of our offshore and onshore personnel worldwide and the
 execution of our project management in an extremely competitive environment,"
 said Bill J. Lam, president and chief executive officer.
     "Key industry fundamentals such as jack-up drilling rig utilization,
 natural gas prices, and increased capital spending by oil and gas companies
 continue to support what we believe will be a strong second half of 2001, that
 we also expect to carry through into 2002.  We have positioned Horizon to
 participate in the deep water market segments by forming a joint venture with
 Cal Dive International, Inc. that will conduct deepwater reel pipelaying
 projects in the U.S. Gulf of Mexico.  Reel pipelaying operations will create a
 new revenue base for Horizon in the deepwater market segments, further
 broadening our range of services.  The recent central Gulf of Mexico lease
 sale was held in March and showed a high level of interest by oil and gas
 companies, especially in the shallow water segment.  We are well positioned to
 take advantage of the increasing activity in the shallow water market of the
 Gulf of Mexico," added Lam.
     Horizon Offshore provides marine construction services to the offshore oil
 and gas industry, primarily in the Gulf of Mexico.  The Company's fleet is
 used to perform a wide range of marine construction activities, including
 installation of marine pipelines to transport oil and gas from newly installed
 production platforms and other subsea production systems, and the installation
 and abandonment of production platforms.
     This press release contains certain forward-looking statements within the
 meaning of the Private Securities Litigation Reform Act of 1995, which involve
 known and unknown risks, uncertainties and other factors.  Among the factors
 that could cause actual results to differ materially are: industry conditions
 and volatility; prices of oil and gas; the Company's ability to obtain and the
 timing of new projects; changes in competitive factors and other material
 factors that are described from time to time in the Company's filing with the
 Securities and Exchange Commission.  Actual events, circumstances, effects and
 results may be materially different from the results, performance or
 achievements expressed or implied by the forward-looking statements.
 Consequently, the forward-looking statements contained herein should not be
 regarded as representations by Horizon or any other person that the projected
 outcomes can or will be achieved.
 
 
                           COMPARATIVE TABLES FOLLOW:
                             Horizon Offshore, Inc.
                      Summary Financial and Operating Data
                                  (Unaudited)
                                                        Three Months Ended
                                                             March 31,
                                                       2001            2000
     Income Statement Data                     (In thousands, except share and
                                                          per share data)
 
     Contract revenues                          $     54,056    $     15,906
     Cost of contract revenues                        44,517          14,781
         Gross profit                                  9,539           1,125
     Selling, general and administrative expenses      3,592           2,010
          Operating income (loss)                      5,947            (885)
 
     Other income (expense):
          Interest expense                            (2,062)         (1,768)
          Interest income                                293              99
          Gain (Loss)  Sale of Fixed Assets              (22)            ---
          Other income (expense)                           2              (1)
     Net income (loss) before income taxes,
      extraordinary item and cumulative effect
      of accounting change                             4,158          (2,555)
 
     Income tax provision (benefit)                    1,502            (869)
 
     Net income (loss) before extraordinary item and
      cumulative effect of accounting change    $      2,656    $     (1,686)
     Extraordinary item, pre-payment penalty
      net of $304 income tax                            (568)            ---
     Cumulative effect of accounting change net of
      $743 income tax                                    ---           1,381
     Net income (loss)                          $      2,088    $       (305)
 
     Earnings per share:
     Net income (loss) before extraordinary item
      and cumulative effect of accounting
      change - basic                            $        .13    $      (0.09)
 
     Extraordinary item
                                                $       (.03)   $        ---
     Cumulative effect of accounting change     $        ---    $       0.07
     Net income (loss) per share - basic        $        .10    $      (0.02)
 
     Net income (loss) before extraordinary
      item and cumulative effect of accounting
      change - diluted                          $        .12    $      (0.09)
 
     Extraordinary item                         $       (.02)   $        ---
     Cumulative effect of accounting change     $        ---    $       0.07
     Net income (loss) per share - diluted      $        .10    $      (0.02)
 
     Shares used in computing net income (loss)
      per share - basic                           20,442,650      18,804,379
     Shares used in computing net income (loss)
      per share - diluted                         21,506,215      18,804,379
 
     Other Non-GAAP Financial Data:
     EBITDA(A)                                  $      8,744    $        681
 
     Other Financial Data:
     Depreciation and amortization              $      2,817    $      1,567
     Capital expenditures                              2,646           3,932
 
     (A)  Horizon calculates EBITDA (earnings before interest, income taxes,
          depreciation and amortization) as net income or loss plus income
          taxes, net interest expense, depreciation and amortization.  EBITDA
          is a supplemental financial measurement used by Horizon and investors
          in the marine construction industry in the evaluation of its
          business.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X05748232
 
 SOURCE  Horizon Offshore, Inc.