EX-99 2 ex99.htm EXHIBIT 99 TRICO MARINE EXTENDS EXCHANGE OFFER FOR 8 7/8% SENIOR

Exhibit 99.1


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TRICO MARINE SERVICES REPORTS 2007 FIRST QUARTER RESULTS – RECORD FIRST QUARTER NET INCOME OF $14.6 MILLION



HOUSTON, May 7, 2007 /Marketwire/ -- Trico Marine Services, Inc. (NASDAQ: TRMA - News) (the “Company” or “Trico”) today announced its financial results for the quarter ended March 31, 2007 reporting quarterly net income of $14.6 million or $0.95 per share (diluted) compared with fourth quarter 2006 net income of $16.4 million or $1.07 per share (diluted). Total revenues for the first quarter of 2007 were $62.0 million compared with $66.9 million in the prior quarter.  While lower than fourth quarter 2006 given the seasonality of our business, net income and revenues for the first quarter of 2007 were record first quarter highs for the Company.   


Summary Results


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

 

 

Three months

 Three months

 

ended

ended

 

March 31, 2007

December 31, 2006

Charter hire revenues

 $                   60,667 

 $                   66,003 

Operating income

                      20,783 

24,627 

Net income

                      14,584 

16,386 

Diluted EPS

 $                       0.95 

 $                       1.07 

 

 

 

Day Rates:

 

 

Supply / Anchor Handling (North Sea class)

 $                   24,466 

 $                   24,375 

Supply Vessels (Gulf class)

                        9,720 

10,580 

 

 

 

Utilization:

 

 

Supply / Anchor Handling (North Sea class)

92%

96%

Supply Vessels (Gulf class)

70%

66%


First Quarter Results


The market in the North Sea showed continued strength and day rates for the Company’s North Sea class vessels remained robust. However, seasonally harsh weather conditions in the area led to a 4% decline in utilization compared with the immediately preceding quarter.


In the Gulf of Mexico, the market softened during the quarter due to fewer construction projects and a reduction in the number of jack-up rigs in the region. Day rates for the Company’s Gulf class vessels declined 8% but utilization on actively marketed vessels remained constant at 82%.


Direct operating expense increased $2.8 million in the first quarter of 2007 compared with the prior quarter primarily due to an increase in mobilization costs of $3.6 million. The Company incurred $3.4 million to mobilize five vessels to Southeast Asia in the first quarter of 2007.



In April 2007, day rates for North Sea Class vessels averaged $27,010 with utilization of 84% while day rates for our Gulf class supply vessels averaged $9,412 with utilization of 71%, or 83% for all actively marketed vessels.


Trevor Turbidy, Trico’s President and Chief Executive Officer commented, “We are extremely pleased to have achieved the highest first quarter earnings and revenues in our Company’s history.  Day rates in the North Sea remained strong during a quarter which is seasonally our weakest and we expect that day rates will continue to be strong and utilization should improve as the region’s construction season continues to unfold.  While day rates in the Gulf of Mexico region are below the highs achieved in 2006, they remain robust. We are starting to see the supply/demand balance tightening again due to vessels mobilizing from the region and as a result, we have increased our leading edge bid rates for the first time during the most recent two quarters.”


Mr. Turbidy continued, “We remain focused on the continued execution of our growth strategy as well as ongoing operations in our core markets in the North Sea, Gulf of Mexico and West Africa.  In February 2007, we raised $150 million aggregate principal amount from the issuance of senior convertible debentures.  Our strengthened financial position provides us with the financial flexibility to rejuvenate our fleet, expand into growing markets and seek attractive opportunities that allow us to grow our earnings and increase value for all stockholders.”


Conference Call

The Company will conduct a conference call tomorrow morning Tuesday, May 8, 2007 at 8:30 EDT, to discuss the results with analysts, investors and other interested parties. Individuals who wish to participate in the conference call should dial (800) 817-4887, access code 3909149, in the United States or (913) 981-4913, access code 3909149, from outside the country.

A telephonic replay of the conference call will be available until May 22, 2007, starting approximately 1 hour after the completion of the call, and can be accessed by dialing (888) 203-1112, access code 3909149 (international calls should use (719) 457-0820, access code 3909149).

About Trico


Trico provides a broad range of marine support services to the oil and gas industry, primarily in the North Sea, Gulf of Mexico, West Africa and Southeast Asia (through its partnership).  The services provided by the Company’s diversified fleet of vessels include the transportation of drilling materials, supplies and crews to drilling rigs and other offshore facilities; towing drilling rigs and equipment from one location to another; and support for the construction, installation, repair and maintenance of offshore facilities.  Trico has its principal office in Houston, Texas.


Please visit the Company’s website at http://www.tricomarine.com for additional information.


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.


Contact info:

Geoff Jones

VP & CFO

(713) 780-9926




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, 2007

 

December 31, 2006

Revenues:

 

 

 

Charter hire

 $                  60,667 

 

 $                  66,003 

Amortization of non-cash deferred revenues

                          208 

 

                          613 

Other vessel income

                       1,094 

 

                          276 

Total revenues

                     61,969 

 

                     66,892 

 

 

 

 

Operating expenses:

 

 

 

Direct vessel operating expenses and other

                     31,409 

 

                     28,629 

General and administrative

                       7,148 

 

                       7,414 

Depreciation and amortization expense

                       5,466 

 

                       6,224 

Gain on sales of assets

                     (2,837)

 

                            (2)

Total operating expenses

                     41,186 

 

                     42,265 

 

 

 

 

Operating income

                     20,783 

 

                     24,627 

 

 

 

 

Interest expense

                        (783)

 

                        (123)

Amortization of deferred financing costs

                        (150)

 

                          (35)

Foreign exchange loss

                        (466)

 

                     (1,846)

Interest income

                       2,718 

 

                       1,546 

Other income (loss), net

                        (225)

 

                        (167)

Income before income taxes and noncontrolling

 

 

 

interest in loss of consolidated subsidiary

                     21,877 

 

                     24,002 

 

 

 

 

Income tax expense

                       8,944 

 

                       8,796 

 

 

 

 

Income before noncontrolling interest in loss of

 

 

 

consolidated subsidiary

                     12,933 

 

                     15,206 

 

 

 

 

Noncontrolling interest in loss of consolidated subsidiary

                       1,651 

 

                       1,180 

 

 

 

 

Net income

 $                  14,584 

 

 $                  16,386 

 

 

 

 

Basic income per common share:

 

 

 

Net income

 $                      0.99 

 

 $                      1.12 

Average common shares outstanding

              14,692,560 

 

          14,667,556 

 

 

 

 

Diluted income per common share:

 

 

 

Net income

 $                      0.95 

 

 $                      1.07 

Average common shares outstanding

              15,282,185 

 

          15,274,223 

 

 

 

 





 

 

 

Three months ended

 

Three months ended

 

Month of

 

March 31,

 

December 31,

Average Day Rates:

April 2006

 

2007

 

2006

PSV/AHTS (North Sea class)

$               27,010 

 

$               24,466 

 

$              24,375 

Supply (Gulf class)

                   9,412 

 

                   9,720 

 

                10,580 

Crew/line handling

                   5,803 

 

                   5,373 

 

                  5,585 

 

 

 

 

 

 

Utilization:

 

 

 

 

 

PSV/AHTS (North Sea class)

84%

 

92%

 

96%

Supply (Gulf class)(1)

71%

 

70%

 

66%

Crew/line handling

79%

 

83%

 

82%

 

 

 

 

 

 

Average Number of Vessels:

 

 

 

 

 

PSV/AHTS (North Sea class)

16.0 

 

16.0 

 

16.0 

Supply (Gulf class)

41.0 

 

41.5 

 

44.0 

Crew/line handling

7.0 

 

8.0 

 

8.0 


(1) Stacked vessels are included in the calculation of utilization. Excluding stacked vessels, our supply vessel utilization was 83% during the one month period ending April 30, 2007, 82% during the three month periods ended March 31, 2007 and 82% during the three month period ending December 31, 2006.




TRICO MARINE SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

 

 

 

 

 

(UNAUDITED)

 

 

 

 March 31,

 

 December 31,

ASSETS

2007

 

2006

Current assets:

 

 

 

Cash and cash equivalents

 $                260,000 

 

 $                114,173 

Available for sale securities

                     29,948 

 

                       2,475 

Restricted cash

                       3,943 

 

                          716 

Accounts receivable, net

                     54,275 

 

                     58,787 

Prepaid expenses and other current assets

                       3,078 

 

                       4,036 

Assets held for sale

                       2,224 

 

                       3,048 

Total current assets

                   353,468 

 

                   183,235 

 

 

 

 

Property and equipment:

 

 

 

Land and buildings

                       1,999 

 

                       1,995 

Marine vessels

                   259,582 

 

                   256,125 

Construction-in-progress

                     18,308 

 

                     15,876 

Transportation and other

                       3,385 

 

                       2,328 

 

                   283,274 

 

                   276,324 

Less accumulated depreciation and amortization

                     49,866 

 

                     44,476 

Net property and equipment

                   233,408 

 

                   231,848 

 

 

 

 

Restricted cash - noncurrent

                       8,484 

 

                     11,842 

Other assets

                     14,683 

 

                       8,397 

Total assets

 $                610,043 

 

 $                435,322 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

Current liabilities:

 

 

 

Short-term and current maturities of debt

 $                    1,258 

 

 $                    1,258 

Accounts payable

                       9,646 

 

                     11,055 

Accrued expenses

                     13,465 

 

                     14,590 

Accrued insurance reserve

                       3,001 

 

                       3,062 

Accrued interest

                          896 

 

                          110 

Income taxes payable

                       1,619 

 

                       2,092 

Total current liabilities

                     29,885 

 

                     32,167 

 

 

 

 

Long-term debt, including premiums

                   158,591 

 

                       8,605 

Deferred income taxes

                     68,813 

 

                     63,327 

Deferred revenues on unfavorable contracts

                       1,197 

 

                       1,376 

Other liabilities

                       2,584 

 

                       2,199 

Total liabilities

                   261,070 

 

                   107,674 

 

 

 

 

Noncontrolling interest

                     13,659 

 

                     15,310 

 

 

 

 

Commitments and contingencies

 

 

 

Stockholders' equity:

 

 

 

Preferred stock, $.01 par value  

                            - 

 

                            - 

 Common stock, $.01 par value

                          149 

 

                          148 

Warrants - Series A

                       1,645 

 

                       1,646 

Warrants - Series B

                          633 

 

                          634 

Additional paid-in capital

                   236,194 

 

                   231,218 

Retained earnings

                     93,264 

 

                     78,824 

Unamortized pension loss, net on income tax of $ 0.3 million

                        (726)

 

                        (708)

Cumulative foreign currency translation adjustment

                       4,155 

 

                          576 

Total stockholders' equity

                   335,314 

 

                   312,338 

 

 

 

 

Total liabilities and stockholders' equity

 $                610,043 

 

 $                435,322 












TRICO MARINE SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(In thousands)

 

 

 

 

 

Three months

 

Three months

 

ended

 

ended

 

March 31, 2007

 

March 31, 2006

 

 

 

 

Net income

 $                  14,584 

 

 $                  12,378 

Adjustments to reconcile net income to net cash provided by

 

 

 

operating activities:

 

 

 

Depreciation and amortization

                       5,580 

 

                       6,136 

Amortization of deferred revenues

                        (208)

 

                     (1,269)

Deferred income taxes

                       8,115 

 

                       6,475 

Gain on sales of assets

                     (2,837)

 

                        (767)

Provision for doubtful accounts

                          (19)

 

                          150 

Stock compensation expense

                          637 

 

                          293 

Noncontrolling interest in loss of consolidated subsidiary

                     (1,651)

 

                            - 

Change in operating assets and liabilities:

 

 

 

Accounts receivable

                       5,136 

 

                     (3,243)

Prepaid expenses and other current assets

                          989 

 

                        (553)

Accounts payable and accrued expenses

                     (2,738)

 

                          396 

Other, net

                     (1,280)

 

                        (258)

Net cash provided by operating activities

                     26,308 

 

                     19,738 

 

 

 

 

Cash flows from investing activities:

 

 

 

Purchases of property and equipment

                     (4,221)

 

                     (1,023)

Proceeds from sales of assets

                       4,533 

 

                       1,289 

Increase in available-for-sale securities

                   (27,473)

 

                            - 

Increase in restricted cash

                          153 

 

                        (491)

Net cash used in investing activities

                   (27,008)

 

                        (225)

 

 

 

 

Cash flows from financing activities:

 

 

 

Net proceeds from issuance of common stock

                            30 

 

                          117 

Proceeds from issuance of debt

                   150,000 

 

                            - 

Debt issuance cost

                     (4,804)

 

                            - 

Repayment of debt

                              - 

 

                     (9,621)

Net cash provided by (used in) financing activities

                   145,226 

 

                     (9,504)

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

                       1,301 

 

                          231 

 

 

 

 

Net increase  in cash and cash equivalents

                   145,827 

 

                     10,240 

Cash and cash equivalents at beginning of period

                   114,173 

 

                     51,218 

Cash and cash equivalents at end of period

 $                260,000 

 

 $                  61,458