SOURCE: Trico Marine Services, Inc.

April 29, 2008 21:28 ET

Trico Marine Services Reports 2008 First Quarter Results

HOUSTON, TX--(Marketwire - April 29, 2008) - Trico Marine Services, Inc. (NASDAQ: TRMA) (the "Company" or "Trico") today announced its financial results for the quarter ended March 31, 2008 reporting quarterly net income of $10.9 million, or $0.73 earnings per share (diluted), which included a $2.8 million pre-tax gain on sale of non-revenue generating assets, or $0.12 earnings per share (diluted). By comparison, our fourth quarter net income was $30.7 million or $2.08 earnings per share (diluted) including $13.1 million or $0.89 earnings per share (diluted), due to favorable changes in the Norwegian Tonnage Tax regime.

(In thousands, except per share data and day rates)

                                             Three months    Three months
                                                ended           Ended
                                               March 31,     December 31,
                                                 2008           2007
                                            --------------  --------------
Charter hire revenues                       $       58,138  $       63,148
Operating income                                    11,504          18,246
Net income                                          10,901          30,736
Diluted EPS                                 $         0.73  $         2.08

Average Day Rates:
Towing & Supply
   AHTSs                                    $       39,373  $       45,930
   PSVs                                             17,959          22,591
   OSVs                                              7,163           7,454

Subsea
   SPSVs                                    $       18,709  $       19,066

Utilization:
Towing & Supply
   AHTSs                                                87%             92%
   PSVs                                                 91%             79%
   OSVs                                                 77%             69%

Subsea
   SPSVs                                                94%             92%

President and Chief Executive Officer, Joe Compofelice, commented, "Our first quarter results reflect the Company's continued success in executing our long-term strategy. During the quarter the markets were strong in the North Sea, West Africa and Mexico, with some softness in the Gulf of Mexico which improved after the end of the quarter. We did, however, mobilize three vessels from our domestic fleet to international areas for term contracts. While the cost of mobilizing these vessels impacted our first quarter results, our future earnings will be enhanced by positioning these vessels in high growth markets with term contracts. Eastern Marine Services Limited (EMSL), our joint venture with China Oilfield Services Limited (COSL), was profitable during the quarter, its first quarter of profitability since commencement of operations in July 2006. EMSL's growth and profitability are an important part of our plan to expand into emerging markets, creating value for our shareholders."

Highlights for the Quarter

--  Mobilized two vessels to Southeast Asia and one vessel to West Africa
    with an adverse effect of $1.7 million to operating income
--  EMSL recorded its first quarterly profit
--  Secured a new $50 million credit facility
    

Subsequent Events to the Quarter

--  Awarded long-term contracts with Grupo CFC in Mexico for work with
    Pemex for two GPA-640 vessels  expected to be delivered in the second and
    third quarters of 2008
--  Secured a $100 million credit facility to fund construction of the
    previously-announced eight newbuild subsea vessels
--  Sold three crewboats, reducing the size of Trico's  U.S. Gulf Of
    Mexico fleet to twelve supply vessels and two crewboats
    

Summary Results

Charter hire revenues for the quarter ended March 31, 2008 were $58.1 million, a $5.0 million decrease compared to the fourth quarter of 2007. This decrease can be attributed to a combination of a reduction in spot AHTS rates in the North Sea from the record rates in the fourth quarter of 2007, lower utilization for supply vessels in the Gulf of Mexico and the loss of revenues from three vessels being mobilized internationally. Direct operating expenses for the quarter increased $3.6 million compared to the prior quarter due to increased repairs and maintenance expenses and mobilization costs to move vessels internationally.

In April 2008 (through April 25, 2008), AHTS day rates averaged $31,035 with utilization of 76%, PSV day rates averaged $17,734 with utilization of 91%, OSV day rates averaged $7,692 with utilization of 83%, and SPSV day rates averaged $23,235 with utilization of 68%.

Conference Call Information

The Company will conduct a conference call at 8:30 a.m. EDT on Wednesday, April 30, 2008, to discuss the results with analysts, investors and other interested parties. Individuals who wish to participate in the conference call should dial (888) 277-7135, access code 6623904, in the United States or (913) 312-0843, access code 6623904, from outside the country.

A telephonic replay of the conference call will be available until May 14, 2008, starting approximately 1 hour after the completion of the call, and can be accessed by dialing (888) 203-1112 access code 6623904 (international calls should use (719) 457-0820, access code 6623904).

About Trico

Trico provides a broad range of marine support services to the oil and gas industry, operating primarily in international markets, with operations in the North Sea, West Africa, Mexico, Brazil, Southeast Asia and the Gulf of Mexico. Using its larger and more sophisticated vessels, Trico provides support for the construction, installation, repair and maintenance of offshore facilities, the deployment of underwater remotely operated vehicles, or ROVs, sea floor cable laying and trenching services. Trico is headquartered in Houston, Texas.

For more information about Trico Marine Services, Inc. visit us on the web at www.tricomarine.com.

Certain statements in this press release that are not historical fact may be "forward-looking statements." Actual events may differ materially from those projected in any forward-looking statement. There are a number of important factors involving risks and uncertainties beyond the control of the Company that could cause actual events to differ materially from those expressed or implied by such forward-looking statements. A description of risks and uncertainties relating to Trico Marine Services, Inc. and its industry and other factors, which could affect the Company's results of operations or financial condition, are included in the Company's Securities and Exchange Commission filings. Trico undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this report.

TRICO MARINE SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(In thousands, except share and per share amounts)


                                                 Three months  Three months
                                                     ended        ended
                                                   March 31,   December 31,
                                                     2008          2007
                                                  -----------  -----------
Revenues:
Charter hire                                      $    58,138  $    63,148
Other vessel income                                     1,037        1,835
                                                  -----------  -----------
Total revenues                                         59,175       64,983

Operating expenses:
Direct vessel operating expenses                       32,994       29,377
General and administrative                             10,767       10,701
Depreciation and amortization                           6,747        6,582
Impairment on assets held for sale, net of
 insurance recoveries                                       -          116
(Gain) loss on sale of assets                          (2,837)         (39)
                                                  -----------  -----------
Total operating expenses                               47,671       46,737

Operating income                                       11,504       18,246

Interest income                                         1,578        3,305
Interest expense, net of amounts capitalized                -         (329)
Foreign exchange gain                                   1,267          754
Other loss, net                                          (323)        (435)
                                                  -----------  -----------
Income before income taxes and noncontrolling
 interest in (income) loss of consolidated
 subsidiary                                            14,026       21,541

Income tax (benefit) expense                            2,284       (8,963)
                                                  -----------  -----------

Income before noncontrolling interest in (income)
 loss of consolidated subsidiary                       11,742       30,504
                                                  -----------  -----------

Noncontrolling interest in consolidated
 subsidiary                                              (841)         232
                                                  -----------  -----------

Net income                                        $    10,901  $    30,736
                                                  ===========  ===========

Basic income per common share:
   Net income                                     $      0.76  $      2.15
                                                  ===========  ===========
   Average common shares outstanding               14,411,162   14,315,001
                                                  ===========  ===========

Diluted income per common share:
   Net income                                     $      0.73  $      2.08
                                                  ===========  ===========
   Average common shares outstanding               14,918,827   14,776,887
                                                  ===========  ===========




TRICO MARINE SERVICES, INC. AND SUBSIDIARIES


                                                Three Months  Three Months
                                                   ended         ended
                                    Month of      March 31,   December 31,
                                   April 2008       2008          2007
                                  ------------  ------------  ------------

Average Day Rates:

Towing and Supply
   AHTSs (1)                      $     31,035  $     39,373  $     45,930
   PSVs                                 17,734        17,959        22,591
   OSVs                                  7,692         7,163         7,454
   Crew/Line                             5,797         5,879         5,880

Subsea
   SPSVs                          $     23,235  $     18,709  $     19,066


Utilization:

Towing and Supply
   AHTSs                                    76%           87%           92%
   PSVs                                     91%           91%           79%
   OSVs                                     83%           77%           69%
   Crew/Line                                53%           54%           73%

Subsea
   SPSVs                                    68%           94%           92%


Average Number of Vessels:

Towing and Supply
   AHTSs                                   6.0           6.0           6.0
   PSVs                                    7.0           7.0           7.0
   OSVs                                   38.0          38.2          39.0
   Crew/Line                               6.2           7.0           7.0

Subsea
   SPSVs                                   5.0           5.0           5.0


(1)  Anchor handling, towing and supply vessels.





TRICO MARINE SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In thousands, except share and per share amounts)


                                                  (UNAUDITED)
ASSETS                                             March 31,   December 31,
                                                     2008          2007
                                                  -----------  -----------
Current assets:
   Cash and cash equivalents                      $   143,153  $   131,463
   Restricted cash                                      1,119        4,747
   Accounts receivable, net                            53,298       47,253
   Prepaid expenses and other current assets            5,539        5,023
   Assets held for sale                                 1,500        3,786
                                                  -----------  -----------
      Total current assets                            204,609      192,272

Property and equipment:
   Land and buildings                                      42          117
   Marine vessels                                     301,932      285,656
   Construction-in-progress                           297,272      255,749
   Transportation and other                             2,467        3,574
                                                  -----------  -----------
                                                      601,713      545,096
   Less accumulated depreciation and amortization     (80,744)     (71,482)
                                                  -----------  -----------
   Net property and equipment                         520,969      473,614

Restricted cash - noncurrent                            3,844        3,813
Other assets                                           13,079       12,045
                                                  -----------  -----------
   Total assets                                   $   742,501  $   681,744
                                                  ===========  ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Short-term and current maturities of debt      $     5,258  $     3,258
   Accounts payable                                    12,742       15,480
   Accrued expenses                                    19,475       22,896
   Accrued insurance reserve                            2,009        2,508
   Accrued interest                                     1,130        2,152
   Foreign taxes payable                                4,926        4,627
   Income taxes payable                                 1,172        1,347
                                                  -----------  -----------
      Total current liabilities                        46,712       52,268

Long-term debt, including premium                     167,273      157,287
Foreign taxes payable                                  68,966       64,777
Deferred revenues on unfavorable contracts                544          599
Other liabilities                                       3,938        3,713
                                                  -----------  -----------
   Total liabilities                                  287,433      278,644

Noncontrolling interest                                12,651       12,878
Commitments and contingencies

Stockholders' equity:
Preferred stock, $.01 par value                             -            -
Common stock, $.01 par value                              155          150
Warrants - Series A                                     1,640        1,645
Warrants - Series B                                         -          632
Additional paid-in capital                            260,370      245,134
Retained earnings                                     152,756      141,611
Accumulated other comprehensive income, net of
 tax                                                   45,100       18,654
Treasury stock, at cost                               (17,604)     (17,604)
                                                  -----------  -----------
   Total stockholders' equity                         442,417      390,222
                                                  -----------  -----------

   Total liabilities and stockholders' equity     $   742,501  $   681,744
                                                  ===========  ===========




TRICO MARINE SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In thousands)

                                                 Three months  Three months
                                                     ended        ended
                                                   March 31,     March 31,
                                                     2008          2007
                                                  -----------  -----------
Net income                                        $    10,901  $    14,584
   Adjustments to reconcile net income to net cash
    provided by (used in) operating activities:
      Depreciation and amortization                     6,747        5,580
      Amortization of non-cash deferred revenues          (89)        (208)
      Deferred income taxes                             2,103        8,115
      Gain on sales of assets                          (2,837)      (2,837)
      Provision for doubtful accounts                       -          (19)
      Stock based compensation                            600          637
      Noncontrolling interest in income (loss) of
       consolidated subsidiary                            841       (1,651)
      Change in operating assets and liabilities:
         Accounts receivable                           (4,360)       5,136
         Prepaid expenses and other current
          assets                                         (390)         989
         Accounts payable and accrued expenses         (5,116)      (2,738)
         Foreign taxes payable                              -            -
         Other, net                                    (2,792)      (1,280)
                                                  -----------  -----------
Net cash provided by (used in) operating
 activities                                             5,608       26,308
                                                  -----------  -----------

Cash flows from investing activities:
   Purchases of property and equipment                (31,892)      (4,221)
   Proceeds from sales of assets                        5,123        4,533
   Purchases of available-for-sale securities               -      (27,473)
   Change in restricted cash                            3,661          153
                                                  -----------  -----------
Net cash used in investing activities                 (23,108)     (27,008)
                                                  -----------  -----------

Cash flows from financing activities:
   Net proceeds from issuance of common stock               -           30
   Net proceeds from exercises of warrants and
    options                                            11,901            -
   Proceeds from issuance of debt                      12,000      150,000
   Debt issuance costs                                   (273)      (4,804)
                                                  -----------  -----------
Net cash provided by financing activities              23,628      145,226
                                                  -----------  -----------

Effect of exchange rate changes on cash and cash
 equivalents                                            5,562        1,301
                                                  -----------  -----------

Net increase in cash and cash equivalents              11,690      145,827
Cash and cash equivalents at beginning of period      131,463      114,173
                                                  -----------  -----------
Cash and cash equivalents at end of period        $   143,153  $   260,000
                                                  ===========  ===========

Contact Information

  • Contact info:
    Geoff Jones
    VP & Chief Financial Officer
    (713) 780-9926