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GLOBAL MARINE REPORTS 1992 NET INCOME

 HOUSTON, Jan. 20 /PRNewswire/ -- Global Marine Inc. (NYSE: GLM) today reported net income of $16 million, or 13 cents per share, on revenues of $65 million for the quarter ended Dec. 31, 1992.
 This compares with net income of $7 million, or 6 cents per share, on revenues of $88 million for the corresponding quarter of 1991. For the year ended Dec. 31, 1992, the company reported net income of $57 million, or 49 cents per share, on revenues of $260 million. This compares with net income of $1 million, or 1 cent per share, on revenues of $315 million reported for 1991. Results for 1992 include an $11 million gain in the first quarter on the sale of a jackup drilling rig, a $55 million gain in the second quarter on the settlement of take-or- pay lawsuit, and a $28 million gain in the fourth quarter in connection with a debt discount relating to the company's previously reported recapitalization. Cash and short-term investments totaled $34 million at Dec. 31, 1992, compared to $57 million at Dec. 31, 1991.
 C. Russell Luigs, Global Marine's chairman and chief executive officer, said, "The company successfully completed its recapitalization in the fourth quarter, resulting in a $118 million reduction in long- term debt, an $80 million increase in shareholders' equity, and a significant decrease in its debt service obligations over the next several years. In January of 1993, the company's underwriters exercised their option to purchase an additional 3.9 million shares of common stock, resulting in an additional increase of $8 million in the company's equity and cash balances. The recapitalization represents the culmination of a long and difficult, but successful effort to create a new balance sheet, giving the company the financial strength to weather the cycles of the international offshore drilling market."
 Mr. Luigs noted that Global Marine's operating income was only at break-even for the fourth quarter. Despite substantial improvement in the Gulf of Mexico drilling market, international markets, particularly the North Sea, continued to be weak. The company's worldwide offshore contract drilling fleet experienced an average rig utilization rate of 81 percent in the fourth quarter of 1992, up from 73 percent in the prior quarter and above the industry's fourth quarter average utilization rate of 76 percent.
 Houston-based Global Marine is one of the industry's largest international offshore drilling contractors, with 25 rigs deployed worldwide. In addition, the company offers turnkey drilling services and 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 Year
 Dec. 31 1992 1991 1992 1991
 Revenues:
 Marine drilling $58.9 $81.1 $241.0 $287.1
 Oil and gas 5.8 6.7 19.3 28.1
 Total revenues 64.7 87.8 260.3 315.2
 Expenses:
 Marine drilling 48.3 51.6 189.2 197.7
 Oil and gas .9 1.8 6.1 8.3
 Depreciation, depletion &
 amortization 11.8 11.6 47.1 46.6
 (Gain) loss on sale of offshore
 drilling rig .1 -- (10.9) --
 General & administrative 3.6 3.5 13.1 13.5
 Total operating expenses 64.7 68.5 244.6 266.1
 Operating income -- 19.3 15.7 49.1
 Other income (expense):
 Interest expense (10.7) (12.1) (43.6) (49.9)
 Interest income .8 .7 2.8 3.5
 Litigation settlement -- -- 55.0 --
 Other -- -- .7 .8
 Total other income (expense) (9.9) (11.4) 14.9 (45.6)
 Inc. (loss) before income taxes (9.9) 7.9 30.6 3.5
 Income tax expense .8 1.0 3.1 2.5
 Income (loss) before extraord. item
 and cumulative effect of changes in
 accounting principles (10.7) 6.9 27.5 1.0
 Extraordinary gain on extinguishment
 of debt 28.3 -- 28.3 --
 Cumulative effect of change in
 accounting for retiree health
 benefits (1.9) -- (1.9) --
 Cumulative effect of change in
 accounting for income taxes -- -- 3.3 --
 Net income 15.7 6.9 57.2 1.0
 Net income (loss) per common share:
 Before extraordinary item and
 cumulative effect of changes in
 accounting principles $(0.09) $0.06 $0.24 $0.01
 Extraordinary gain on extinguishment
 of debt 0.24 -- 0.24 --
 Cumulative effect of change in
 accounting for retiree health
 benefits (0.02) -- (0.02) --
 Cumulative effect of change in
 accounting for income taxes -- -- 0.03 --
 Net income per share $(0.13) $0.06 $0.49 $0.01
 Average common shares and share
 equivalents outstanding 116.5 113.3 116.3 109.2
 Condensed Consolidated Balance Sheet
 (in millions)
 Dec. 31 1992 1991
 Assets:
 Cash and cash equivalents $ 23.3 $ 25.5
 Marketable securities 10.3 31.7
 Other current assets 57.7 71.0
 Total current assets 91.3 128.2
 Net properties 318.0 353.7
 Other assets 70.6 41.8
 Total assets $479.9 $523.7
 Liabilities and shareholders' equity:
 Current maturities
 of long-term debt $ 24.0 $ 5.8
 Other current liabilities 36.6 34.0
 Total current liabilities 60.6 39.8
 Long-term debt 225.0 386.0
 Reserve for loss on
 operating lease 19.6 29.8
 Deferred income taxes -- 3.3
 Other long-term liabilities 20.2 20.2
 Shareholders' equity 154.5 44.6
 Total liabilities and
 shareholders' equity $479.9 $523.7
 Condensed Consolidated Statement of Cash Flows
 (In millions)
 Years Ended Dec. 31 1992 1991
 Cash flows from operating activities:
 Net income $57.2 $ 1.0
 Adjustments to reconcile net income to
 net cash provided by operating activities:
 Depreciation, depletion and amortization 47.1 46.6
 Deferred interest 18.3 26.8
 Non-current assets received in litigation
 settlement (35.0) --
 Extraordinary gain on extinguishment of debt (28.3) --
 Gain on sale of offshore drilling rigs, net (10.9) --
 Cumulative effect of changes in accounting
 principles, net (1.4) --
 Proceeds from settlement of litigation
 credited to shareholders' equity -- 17.8
 (Increase) decrease in accounts receivable 11.9 (17.9)
 (Increase) decrease in work in process 4.0 (4.0)
 Increase in other current assets (2.3) (2.4)
 Increase (decrease) in accounts payable .8 (4.2)
 Increase in accrued liabilities 3.1 5.8
 Other, net 1.5 (2.8)
 Net cash flow provided by operating activities 66.0 66.7
 Cash flows from investing activities:
 Proceeds from sales or maturities of marketable
 securities 70.2 61.5
 Purchases of marketable securities (48.8) (75.1)
 Capital expenditures (20.9) (22.7)
 Disposals of properties 21.8 .6
 Other (.3) .4
 Net cash flow provided by
 (used in) investing activities 22.0 (35.3)
 Cash flows from financing activities:
 Payments on long-term debt (359.1) (67.2)
 Issuance of long-term debt 225.0 --
 Common stock offering 51.3 --
 Debt issue costs (8.2) --
 Exercise of stock purchase warrants -- 11.5
 Other .8 .9
 Net cash flow used in financing activities (90.2) (54.8)
 Decrease in cash and cash equivalents (2.2) (23.4)
 Cash & cash equivalents at beginning of year 25.5 48.9
 Cash & cash equivalents at end of year $23.3 $25.5
 -0- 1/20/93
 /CONTACT: David A. Herasimchuk of Global Marine, 713-596-5809/
 (GLM)


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

CK-SP -- NY028 -- 6860 01/20/93 11:57 EST
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Date:Jan 20, 1993
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