UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): November 13, 2003
____________________
GLOBAL INDUSTRIES, LTD.
(Exact name of registrant as specified in its charter)
Louisiana (State or other jurisdiction of incorporation or organization) | 2-56600 (Commission File Number) | 72-1212563 (I.R.S. Employer Identification No.) |
8000 Global Drive | 70665 | |
P.O. Box 442, Sulphur, LA (Address of principal executive offices) | 70664-0442 (Zip code) |
Registrant's telephone number, including area code:(337) 583-5000
Item 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On November 5, 2003, Global Industries, Ltd. issued a press release announcing the third quarter earnings release and conference call, a copy of which is attached as Exhibit 99.1 and incorporated herein by reference.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS.
Not applicable.
(b) PRO FORMA FINANCIAL INFORMATION.
Not applicable.
99.1-Press Release dated November 5, 2003.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
GLOBAL INDUSTRIES, LTD.
By: /s/ TIMOTHY W. MICIOTTO
___________________________________
Timothy W. Miciotto
Senior Vice President/
Chief Financial Officer
Dated: November 13, 2003
EXHIBIT INDEX
EXHIBIT
NUMBER EXHIBIT DESCRIPTION
99.1 Press Release dated November 5, 2003
EXHIBIT 99.1
[GLOBAL INDUSTRIES, LTD. LOGO]
FOR IMMEDIATE RELEASE
PRESS RELEASE CONTACT: WILLIAM J. DORE', JR.
Carlyss, Louisiana,(November 5, 2003) Global Industries, Ltd.(NASDAQ:GLBL) reported a net loss of $12.6 million, or $0.13 per share for the quarter ended September 30, 2003, compared to net income of $5.5 million, or $0.05 per diluted share for the same period last year. Net loss for the nine months ended September 30, 2003 was $13.0 million, or $0.13 per share, compared to net income of $10.5 million, or $0.10 per diluted share for the nine months ended September 30, 2002. The net loss reflects a gain of approximately $5.6 million, before tax, from the sale of two construction vessels during the quarter ended September 30, 2003, which is reported as other income. Also included in the net loss is a $4.6 million tax expense attributable to the establishment of a valuation allowance for a capital loss carry-forward previously anticipated to be utilized by 2004.
Revenues for the quarter ended September 30, 2003 decreased $6.6 million, or 5%, to $122.2 million from $128.8 million for the quarter ended September 30, 2002. Revenues for the nine months ended September 30, 2003 increased $34.4 million, or 9%, to $425.3 million from $390.9 million for the nine months ended September 30, 2002.
William J. Doré, Global's Chairman and Chief Executive Officer, stated, "Revenues and earnings increased in our domestic operating segments this quarter as compared to the same period last year. While productivity goals are starting to be achieved in certain regions, the gains in domestic operating segments were more than offset by losses in our West Africa and Middle East OCD segments due to reduced efficiencies as well as disputes on three large projects. Softening market conditions and limitations on recording additional tax benefits are expected to depress net margins for the remainder of the fiscal year. During the quarter we booked $123.6 million in new work resulting in a backlog of $71.9 million at quarter-end compared to a backlog of $260.5 million at the end of the same period last year. The reduction in the backlog from last year is due to lower bookings of new work in West Africa, Mediterranean, and the Gulf of Mexico."
The Company has conformed its segment reporting to changes in its operating management structure and existing business lines that became effective January 1, 2003. The Company's new reportable segments include two divisions, Offshore Construction Division and Global Divers & Marine Contractors, each with five reportable segments. The Global Divers & Marine Contractors Division includes all diving and marine support services worldwide and Gulf of Mexico shallow water pipelay.
A conference call will be held at 9:00 a.m. Central Standard Time on Thursday, November 6, 2003. Anyone wishing to listen to the conference call may dial (877) 777-1973 or (612) 333-4911 and ask for the Global Industries Third Quarter Earnings Release 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 atwww.globalind.com, under "Investor Relations," where it will also be archived for anytime reference until November 21, 2003.
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 provides pipeline construction, platform installation and removal, diving services, and other marine support to the oil and gas industry in the Gulf of Mexico, West Africa, Asia Pacific, Middle East/India, South America, and Mexico's Bay of Campeche. The Company's shares are traded on the NASDAQ National Market System 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 below are the Company's results of operations and selected balance sheet amounts for the periods indicated | |||
(In thousands, except shares and per share amounts) | ||||
Three Months Ended | Three Months Ended | |||
Results of Operations | September 30, 2003 | September 30, 2002 | ||
Revenues | $ 122,159 | $ 128,798 | ||
Gross (loss) profit | (573) | 22,435 | ||
Selling, general, and administrative expenses | 9,540 | 10,055 | ||
Operating (loss) income | $ (10,113) | $ 12,380 | ||
Interest expense | 2,645 | 3,470 | ||
Other (income) expense | (6,068) | 523 | ||
(Loss) income before income taxes | (6,690) | 8,387 | ||
Income taxes | 5,959 | 2,935 | ||
Net (loss) income | $ (12,649) | $ 5,452 | ||
Average shares | ||||
Basic | 100,791,000 | 101,263,000 | ||
Diluted | 100,791,000 | 101,795,000 | ||
Net (loss) income per share | ||||
Basic | $ (0.13) | $ 0.05 | ||
Diluted | (0.13) | 0.05 | ||
Other data | ||||
Depreciation and amortization | $ 15,315 | $ 15,285 | ||
Deferred income taxes | 6,552 | 5,965 | ||
Backlog at September 30, 2003 and 2002 | 71,879 | 260,523 | ||
| Set forth below are the Company's results of operations for the periods indicated | |||
(In thousands) | ||||
Three Months Ended | Three Months Ended | |||
Reportable Segments | September 30, 2003 | September 30, 2002 | ||
Total Segment Revenues | ||||
Offshore Construction Division | ||||
Gulf of Mexico | $ 28,901 | $ 12,488 | ||
West Africa | 17,060 | 18,902 | ||
Latin America | 4,942 | 47,825 | ||
Asia Pacific | 18,282 | 11,546 | ||
Middle East | 22,852 | 842 | ||
Subtotal | 92,037 | 91,603 | ||
Global Divers and Marine Contractors | ||||
Gulf of Mexico | 24,024 | 24,465 | ||
West Africa | 1,498 | 1,117 | ||
Latin America | -- | 6,770 | ||
Asia Pacific | 8,136 | 15,264 | ||
Middle East | 2,288 | 932 | ||
Subtotal | 35,946 | 48,548 | ||
Total | 127,983 | 140,151 | ||
Intersegment elimination | (5,824) | (11,353) | ||
Total segment revenues from external customers | $ 122,159 | $ 128,798 | ||
Income (loss) before income taxes | ||||
Offshore Construction Division | ||||
Gulf of Mexico | $ 4,385 | $ (1,151) | ||
West Africa | (13,586) | (3,383) | ||
Latin America | (309)* | 3,152 | ||
Asia Pacific | (181) | 1,245 | ||
Middle East | (3,939) | (132) | ||
Subtotal | (13,630) | (269) | ||
Global Divers and Marine Contractors | ||||
Gulf of Mexico | 4,181 | 3,115 | ||
West Africa | 54 | 600 | ||
Latin America | (188) | 3,161 | ||
Asia Pacific | 1,104 | 2,786 | ||
Middle East | 1,255 | (1,086) | ||
Subtotal | 6,406 | 8,576 | ||
Other | 534 | 80 | ||
Total | $ (6,690) | $ 8,387 | ||
*- includes gain of approximately $5.6 million from the sale of two construction vessels.
| Set forth below are the Company's results of operations and selected balance sheet amounts for the periods indicated | |||
(In thousands, except shares and per share amounts) | ||||
Nine Months Ended | Nine Months Ended | |||
Results of Operations | September 30, 2003 | September 30, 2002 | ||
Revenues | $ 425,252 | $ 390,906 | ||
Gross profit | 23,835 | 57,109 | ||
Selling, general, and administrative expenses | 29,544 | 28,440 | ||
Operating (loss) income | $ (5,709) | $ 28,669 | ||
Interest expense | 8,240 | 11,404 | ||
Other (income) expense | (6,768) | 1,181 | ||
(Loss) income before income taxes | (7,181) | 16,084 | ||
Income taxes | 5,777 | 5,634 | ||
Net (loss) income | $ (12,958) | $ 10,450 | ||
Average shares | ||||
Basic | 100,695,000 | 99,249,000 | ||
Diluted | 100,695,000 | 99,767,000 | ||
Net (loss) income per share | ||||
Basic | $ (0.13) | $ 0.11 | ||
Diluted | (0.13) | 0.10 | ||
Other data | ||||
Depreciation and amortization | $ 43,079 | $ 45,124 | ||
Deferred income (benefit) taxes | (678) | 2,080 | ||
Selected Balance Sheet Amounts | September 30, 2003 | December 31, 2002 | ||
Cash | $ 17,261 | $ 28,204 | ||
Working capital | 85,931 | 75,060 | ||
Total assets | 660,457 | 701,644 | ||
Debt | 118,930 | 126,657 | ||
Shareholders' equity | 431,871 | 441,188 | ||
| Set forth below are the Company's results of operations for the periods indicated | |||
(In thousands) | ||||
Nine Months Ended | Nine Months Ended | |||
Reportable Segments | September 30, 2003 | September 30, 2002 | ||
Total Segment Revenues | ||||
Offshore Construction Division | ||||
Gulf of Mexico | $ 93,414 | $ 42,760 | ||
West Africa | 89,870 | 57,098 | ||
Latin America | 12,210 | 155,952 | ||
Asia Pacific | 72,868 | 51,150 | ||
Middle East | 74,137 | 1,019 | ||
Subtotal | 342,499 | 307,979 | ||
Global Divers and Marine Contractors | ||||
Gulf of Mexico | 63,176 | 63,337 | ||
West Africa | 6,972 | 2,526 | ||
Latin America | 210 | 13,162 | ||
Asia Pacific | 21,978 | 35,902 | ||
Middle East | 10,562 | 5,163 | ||
Subtotal | 102,898 | 120,090 | ||
Total | 445,397 | 428,069 | ||
Intersegment elimination | (20,145) | (37,163) | ||
Total segment revenues from external customers | $ 425,252 | $ 390,906 | ||
Income (loss) before income taxes | ||||
Offshore Construction Division | ||||
Gulf of Mexico | $ 4,214 | $ (7,582) | ||
West Africa | (20,374) | (4,825) | ||
Latin America | (13,946)* | 15,907 | ||
Asia Pacific | 5,307 | 1,816 | ||
Middle East | 6,167 | (1,182) | ||
Subtotal | (18,632) | 4,134 | ||
Global Divers and Marine Contractors | ||||
Gulf of Mexico | 6,442 | 3,282 | ||
West Africa | 1,569 | 1,182 | ||
Latin America | (511) | 6,352 | ||
Asia Pacific | 669 | 2,611 | ||
Middle East | 2,686 | (1,759) | ||
Subtotal | 10,855 | 11,668 | ||
Other | 596 | 282 | ||
Total | $ (7,181) | $ 16,084 | ||
*- includes gain of approximately $5.6 million from the sale of two construction vessels.
