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GLOBAL MARINE REPORTS SECOND QUARTER RESULTS

 HOUSTON, July 15 /PRNewswire/ -- Global Marine Inc. (NYSE: GLM) today reported a net loss of $12 million, or $0.08 per share, on revenues of $55 million for the quarter ended June 30, 1993. This compares with net income of $49 million, or $0.42 per share, on revenues of $70 million for the corresponding quarter of 1992, which included income of $55 million from the settlement of a take-or-pay lawsuit. For the six months ended June 30, 1993, the company reported a net loss of $21 million, or $0.15 per share, on revenues of $116 million. This compares with net income of $50 million, or $0.43 per share, on revenues of $138 million for the first six months of 1992. Net income for the six months ended June 30, 1992, included an $11 million gain in the first quarter on the sale of a jackup drilling rig in addition to the income of $55 million from the settlement of the take-or-pay lawsuit noted above.
 C. Russell Luigs, Global Marine's chairman and chief executive officer, said, "Results for the second quarter of 1993 reflect lower utilization of the company's offshore drilling rigs due largely to downtime during previously announced rig mobilizations and continuing weakness in the North Sea drilling market. During the quarter, we mobilized four rigs to the Gulf of Mexico, including two from the North Sea and two from offshore West Africa. Under a previously announced agreement with Norway's Transocean A.S., we are currently mobilizing two additional rigs from the North Sea to the Gulf. These two rigs, which are owned by Transocean, are 300-foot, independent-leg, cantilevered rigs equipped with top drives and zero discharge. The Gulf of Mexico market remains strong, and all of the company's Gulf of Mexico rigs, including the recently mobilized rigs and the Transocean rigs now being mobilized, are under contract. By mid-August, we expect to have 11 rigs drilling in the Gulf."
 Mr. Luigs also noted that all of the company's jackup drilling rigs, its semisubmersible rigs and its drillship, including all rigs in the North Sea and offshore West Africa, are committed to contracts.
 Houston-based Global Marine is one of the industry's largest international offshore drilling contractors, offers turnkey drilling services, has interests in oil and gas production.
 GLOBAL MARINE INC. AND SUBSIDIARIES
 Condensed Consolidated Statement of Operations
 (In millions, except per-share amounts)
 Periods ended Three months Six months
 June 30 1993 1992 1993 1992
 Revenues:
 Marine drilling $51.2 $65.4 $109.4 $129.2
 Oil and gas 3.3 4.4 6.1 8.9
 Total revenues 54.5 69.8 115.5 138.1
 Expenses:
 Marine drilling 45.5 47.8 93.9 99.3
 Oil and gas .9 2.5 1.9 4.1
 Depreciation, depletion & amort. 8.6 11.7 17.8 23.5
 Gain on sale of offshore
 drilling rig -- -- -- (11.0)
 General and administrative 3.8 3.4 7.0 6.6
 Total operating expenses 58.8 65.4 120.6 122.5
 Operating income (loss) (4.3) 4.4 (5.1) 15.6
 Other income (expense):
 Interest expense (8.0) (10.7) (16.2) (22.0)
 Interest income .5 .6 1.1 1.2
 Litigation settlement -- 55.0 -- 55.0
 Other -- .3 -- .3
 Total other income (expense) (7.5) 45.2 (15.1) 34.5
 Income (loss) before income taxes (11.8) 49.6 (20.2) 50.1
 Income tax expense .1 .5 1.0 1.5
 Income (loss) before cumulative
 effect of changes in accounting
 principles (11.9) 49.1 (21.2) 48.6
 Cumulative effect of change
 in accounting for income taxes -- -- -- 3.3
 Cumulative effect of change in
 accounting for postretirement
 health care and life insurance
 benefits -- -- -- (1.9)
 Net income (loss) (11.9) 49.1 (21.2) 50.0
 Net income (loss) per common share:
 Bef. cumulative effect of changes
 in accounting principles $0.08) $0.42 $(0.15) $0.42
 Cumulative effect of change in
 accounting for income taxes -- -- -- 0.03
 Cumulative effect of change in
 accounting for postretirement
 health care and life insurance
 benefits -- -- -- (0.02)
 Net income (loss) per share (0.08) 0.42 (0.15) 0.43
 Average common shares outstanding 145.2 115.7 144.4 115.5
 Previously reported net income of $51.9 million for the six months ended June 30, 1992, has been restated to include a charge of $1.9 million, representing the cumulative effect on prior years, as of Jan. 1, 1992, of the adoption of Statement of Financial Accounting Standards No. 106 relating to postretirement health care and life insurance benefits. The company adopted the new accounting standard in the fourth quarter of 1992, and the effect of adoption was recorded retroactively to Jan. 1, 1992.
 Condensed Consolidated Balance Sheet
 (In millions)
 6/30/93 12/31/92
 Current Assets:
 Cash and cash equivalents $26.6 $23.3
 Marketable securities 9.4 10.3
 Accounts receivable, net allowances 41.5 46.3
 Note receivable 7.7 2.7
 Other current assets 10.5 8.7
 Total current assets 95.7 91.3
 Net properties 302.6 318.0
 Funds in escrow for operating lease 14.3 19.7
 Note receivable 12.5 17.5
 Investment, at cost 15.0 15.0
 Other assets 20.4 18.4
 Total assets 460.5 479.9
 Current Liabilities:
 Current maturities of long-term debt 24.7 24.0
 Accounts payable 13.2 15.2
 Accrued liabilities 19.6 21.4
 Total current liabilities 57.5 60.6
 Long-term debt 225.0 225.0
 Reserve for loss on operating lease 14.1 19.6
 Other long-term liabilities 20.2 20.2
 Shareholders' Equity:
 Common stock and additional
 paid-in capital 204.0 193.6
 Accumulated deficit (60.3) (39.1)
 Total shareholders' equity 143.7 154.5
 Total liabilities and shareholders'
 equity 460.5 479.9
 Condensed Consolidated Statement of Cash Flows
 (In millions)
 Six months ended June 30 1993 1992
 Cash Flows From Operating Activities:
 Net income (loss) $(21.2) $50.0
 Adjustments to reconcile net income
 (loss) to net cash provided by
 operating activities:
 Depreciation, depletion and amort. 17.8 23.5
 Litigation settlement -- (35.0)
 Deferred interest -- 11.5
 Cumulative effect of changes
 in accounting principles, net -- (1.4)
 Gain on sale of offshore drilling rig -- (11.0)
 (Increase) decrease in accounts
 receivable 4.8 (.2)
 (Increase) decrease in other
 current assets (2.4) .1
 Decrease in accounts payable (2.0) (.8)
 Increase (decrease) in accrued interest 1.0 (.2)
 Decrease in other accrued liabilities (.6) (1.1)
 Other, net (3.9) 3.0
 Net cash flow provided by (used in)
 operating activities (6.5) 38.4
 Cash Flows From Investing Activities:
 Proceeds from sales or maturities
 of marketable securities 10.5 30.4
 Purchases of marketable securities (9.6) (24.3)
 Capital expenditures (9.2) (9.8)
 Disposals of properties 8.9 18.8
 Other .7 .4
 Net cash flow provided by
 investing activities 1.3 15.5
 Cash Flows From Financing Activities:
 Common stock offering, net of expenses 7.8 --
 Payments on long-term debt (.2) (45.0)
 Other .9 .8
 Net cash flow provided by
 (used in) financing activities 8.5 (44.2)
 Increase in cash and cash equivalents 3.3 9.7
 Cash and cash equivalents at
 beginning of period 23.3 25.5
 Cash and cash equivalents at end of period 26.6 35.2
 -0- 7/15/93
 /CONTACT: David A. Herasimchuk of Global Marine Inc., 713-596-5809/
 (GLM)


CO: Global Marine Inc. ST: Texas IN: OIL SU: ERN

CK-OL -- NY012 -- 1874 07/15/93 10:51 EDT
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Date:Jul 15, 1993
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