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): February 10, 2004
____________________
GLOBAL INDUSTRIES, LTD.
(Exact name of registrant as specified in its charter)
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Louisiana (State or other jurisdiction of incorporation or organization) |
2-56600 (Commission File Number) |
72-1212563 (I.R.S. Employer Identification No.) |
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8000 Global Drive |
70665 |
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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 February 10, 2004, Global Industries, Ltd. issued a press release announcing the fourth quarter and year ended 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.
(a) FINANCIAL STATEMENTS OF BUSINESS ACQUIRED.Not applicable.
(b) PRO FORMA FINANCIAL INFORMATION.
Not applicable.
(c) EXHIBITS.99.1-Press Release dated February 10, 2004.
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: February 10, 2004
EXHIBIT INDEX
EXHIBIT
NUMBER EXHIBIT DESCRIPTION
99.1 Press Release dated February 10, 2004
EXHIBIT 99.1
[GLOBAL INDUSTRIES, LTD. LOGO]
FOR IMMEDIATE RELEASE
PRESS RELEASE CONTACT: WILLIAM J. DORE', JR.
Revenues for the quarter ended December 31, 2003 decreased $39.6 million, or 38%, to $63.5 million from $103.1 million for the quarter ended December 31, 2002. Revenues for the year ended December 31, 2003 decreased $5.3 million, or 1%, to $488.7 million from $494.0 million for the year ended December 31, 2002.
William J. Doré, Global's Chairman and Chief Executive Officer, stated, "Our results for the quarter were marred by the adverse judgment in the Global/GTM litigation. We are currently appealing this verdict in the Cour d'appel de Paris (Paris Court of Appeals). Also, earnings were negatively impacted by inclement weather conditions affecting our Gulf of Mexico operations and productivity losses on one of our West Africa Division projects. During the fourth quarter we booked $87.8 million in new work resulting in a backlog of $96.2 million at quarter-end compared to a backlog of $275.7 million at the end of the same period last year. Although backlog is lower than the same period last year, we have been experiencing a marked increase in bidding activity for near-term and long-term projects and we are expecting a much improved 2004. "
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 Wednesday, February 11, 2004. Anyone wishing to listen to the conference call may dial (877) 777-1967 or (651) 224-7558 and ask for the Global Industries Fourth Quarter Earnings 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 at www.globalind.com
, under "Investor Relations," where it will also be archived for anytime reference until February 26, 2004.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, changes in competitive factors and the Company's ability to complete projects within its estimates. Additional factors are described in the Company's Annual Report on Form 10-K for the year ended December 31, 2002. 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.
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Set forth below are the Company's results of operations and selected balance sheet amounts for the periods indicated |
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(In thousands, except shares and per share amounts) |
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Three Months Ended |
Three Months Ended |
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Results of Operations
|
December 31, 2003 |
December 31, 2002 |
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Revenues |
$ 63,467 |
$ 103,104 |
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Gross (loss) profit |
(14,084) |
6,369 |
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Losses on asset disposal and impairment |
-- |
45,817 |
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Provision for GTM Litigation |
33,500 |
-- |
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Net (gains) losses on asset disposal |
1,155 |
(3,208) |
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Selling, general, and administrative expenses |
9,943 |
11,012 |
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Operating loss |
$ (58,682) |
$ (47,252) |
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Interest expense |
2,535 |
3,269 |
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Other expense (income) |
(415) |
(250) |
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Loss before income taxes |
(60,802) |
(50,271) |
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Income taxes (benefit) |
(5,431) |
(10,458) |
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Net loss |
$ (55,371) |
$ (39,813) |
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Average shares |
||||
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Basic |
100,884,000 |
100,254,000 |
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Diluted |
100,884,000 |
100,254,000 |
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Net loss per share |
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Basic |
$ (0.55) |
$ (0.40) |
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Diluted |
(0.55) |
(0.40) |
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Other data |
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Depreciation and amortization |
$ 11,282 |
$ 13,216 |
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Deferred income taxes (benefit) |
(6,516) |
(11,605) |
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Backlog at December 31, 2003 and 2002 |
96,177 |
275,713 |
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Set forth below are the Company's results of operations for the periods indicated |
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(In thousands) |
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Three Months Ended |
Three Months Ended |
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Reportable Segments |
December 31, 2003 |
December 31, 2002 |
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Total Segment Revenues |
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Offshore Construction Division |
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Gulf of Mexico |
$ 18,839 |
$ 16,853 |
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West Africa |
10,169 |
26,297 |
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Latin America |
6,836 |
13,108 |
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Asia Pacific |
7,142 |
16,123 |
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Middle East |
(1,295) |
648 |
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Subtotal |
41,691 |
73,029 |
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Global Divers and Marine Contractors |
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Gulf of Mexico |
17,199 |
25,287 |
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West Africa |
1,630 |
1,493 |
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Latin America |
1,093 |
1,857 |
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Asia Pacific |
4,556 |
8,936 |
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Middle East |
4,170 |
4,454 |
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Subtotal |
28,648 |
42,027 |
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Total |
70,339 |
115,056 |
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Intersegment elimination |
(6,872) |
(11,952) |
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Total segment revenues from external customers |
$ 63,467 |
$ 103,104 |
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Income (loss) before income taxes |
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Offshore Construction Division |
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Gulf of Mexico |
$ (5,739) |
$ (15,351) |
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West Africa |
(6,031) |
(277) |
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Latin America |
(2,774) |
(6,135) |
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Asia Pacific |
(4,178) |
(3,086) |
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Middle East |
(3,522) |
(300) |
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Subtotal |
(22,244) |
(25,149) |
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Global Divers and Marine Contractors |
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|
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Gulf of Mexico |
(1,745) |
686 |
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West Africa |
337 |
576 |
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Latin America |
174 |
573 |
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Asia Pacific |
(2,626) |
(20,064) |
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Middle East |
129 |
(6,982) |
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Subtotal |
(3,731) |
(25,211) |
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Other |
(34,827)* |
89 |
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Total |
$ (60,802) |
$ (50,271) |
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* includes a $33.5 million provision (pre-tax) related to the adverse ruling in the Global and Groupe GTM litigation.
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Set forth below are the Company's results of operations and selected balance sheet amounts for the periods indicated |
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(In thousands, except shares and per share amounts) |
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Twelve Months Ended |
Twelve Months Ended |
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Results of Operations |
December 31, 2003 |
December 31, 2002 |
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Revenues |
$ 488,719 |
$ 494,010 |
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Gross profit |
9,751 |
63,478 |
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Losses on asset disposal and impairment |
-- |
45,817 |
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Provision for GTM Litigation |
33,500 |
-- |
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Net (gains) losses on asset disposal |
(5,674) |
(4,041) |
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Selling, general, and administrative expenses |
39,487 |
39,452 |
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Operating loss |
$ (57,562) |
$ (17,750) |
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Interest expense |
10,775 |
14,673 |
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Other expense (income) |
(354) |
1,764 |
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Loss before income taxes |
(67,983) |
(34,187) |
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Income taxes (benefit) |
346 |
(4,824) |
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Net loss |
$ (68,329) |
$ (29,363) |
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Average shares |
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Basic |
100,743,000 |
99,511,000 |
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Diluted |
100,743,000 |
99,511,000 |
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Net loss per share |
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Basic |
$ (0.68) |
$ (0.30) |
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Diluted |
(0.68) |
(0.30) |
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Other data |
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Depreciation and amortization |
$ 54,361 |
$ 58,340 |
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Deferred income taxes (benefit) |
(7,194) |
(9,525) |
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Selected Balance Sheet Amounts |
December 31, 2003 |
December 31, 2002 |
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Cash |
$ 15,628 |
$ 28,204 |
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Working capital |
37,321 |
75,060 |
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Total assets |
620,831 |
701,644 |
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Debt |
123,728 |
126,657 |
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Shareholders' equity |
377,071 |
441,188 |
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Set forth below are the Company's results of operations for the periods indicated |
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(In thousands) |
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|
Twelve Months Ended |
Twelve Months Ended |
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Reportable Segments |
December 31, 2003 |
December 31, 2002 |
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Total Segment Revenues |
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Offshore Construction Division |
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Gulf of Mexico |
$ 112,253 |
$ 59,613 |
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West Africa |
100,039 |
83,395 |
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Latin America |
19,046 |
169,060 |
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Asia Pacific |
80,010 |
67,273 |
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Middle East |
72,842 |
1,667 |
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Subtotal |
384,190 |
381,008 |
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Global Divers and Marine Contractors |
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|
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Gulf of Mexico |
80,375 |
88,624 |
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West Africa |
8,602 |
4,019 |
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Latin America |
1,303 |
15,019 |
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Asia Pacific |
26,534 |
44,838 |
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Middle East |
14,732 |
9,617 |
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Subtotal |
131,546 |
162,117 |
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Total |
515,736 |
543,125 |
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Intersegment elimination |
(27,017) |
(49,115) |
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Total segment revenues from external customers |
$ 488,719 |
$ 494,010 |
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Income (loss) before income taxes |
||||
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Offshore Construction Division |
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Gulf of Mexico |
$ (1,525) |
$ (22,933) |
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West Africa |
(26,405) |
(5,102) |
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Latin America |
(16,720) |
9,772 |
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Asia Pacific |
1,129 |
(1,270) |
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Middle East |
2,645 |
(1,482) |
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Subtotal |
(40,876) |
(21,015) |
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Global Divers and Marine Contractors |
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|
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Gulf of Mexico |
4,697 |
3,968 |
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West Africa |
1,906 |
1,758 |
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Latin America |
(337) |
6,925 |
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Asia Pacific |
(1,957) |
(17,453) |
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Middle East |
2,815 |
(8,741) |
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Subtotal |
7,124 |
(13,543) |
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Other |
(34,231)* |
371 |
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Total |
$ (67,983) |
$ (34,187) |
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* includes a $33.5 million provision (pre-tax) related to the adverse ruling in the Global and Groupe GTM litigation.
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Fiscal Year 2002 Losses on Asset Disposal and Impairment by Segment: |
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Offshore Construction Division |
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Gulf of Mexico |
$ 10,246 |
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West Africa |
-- |
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Latin America |
1,377 |
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Asia Pacific |
2,068 |
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Middle East |
-- |
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Subtotal |
13,691
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Global Divers and Marine Contractors |
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|
Gulf of Mexico |
6,246 |
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West Africa |
-- |
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Latin America |
-- |
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Asia Pacific |
19,063 |
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Middle East |
6,817 |
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Subtotal |
32,126
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Other |
-- |
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Total |
$ 45,817
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