EX-99 2 exhibit.htm EXHIBIT Exhibit


 
GulfMark Offshore Reports
1st Quarter 2006 Results

May 4, 2006 - Houston - GulfMark Offshore, Inc. (NASDAQ:GMRK) today announced net income of $6.3 million, or $0.30 per diluted share on revenue of $47.7 million for the quarter ended March 31, 2006. This compares to net income of $8.9 million, or $0.43 per share (diluted) on revenue of $48.1 million for the first quarter of 2005.

Operating income for the three months ended March 31, 2006 was $10.2 million, compared to $15.1 million for the same period in 2005. The decrease in operating income for the quarter was mainly driven by an increase in operating costs due to drydock expense, the addition of three vessels (Titan, Coloso, Sea Intrepid) and vessel repositioning.

Mr. Bruce Streeter, President and COO of the Company, commented: “Current market conditions are extremely positive in all our markets around the world and we expect this trend to continue to improve as the year develops. In order to maximize the benefit from this potential we went ahead and, as previously discussed, front loaded as many dry-dock days in the first part of the year as we could. We do not expect this decision to adversely affect our full year results. In fact, as we look ahead at 2006 and beyond we have increased the earnings and cash flow stability provided from a growing forward contract cover.”

Mr. Streeter continued, “On April 20, 2006, the Sea Guardian was delivered to our South East Asia operations and on May 1st began its first contract at an attractive rate. Our second 2006 newbuild, the Sea Sovereign, a 5,500 BHP, Dynamic Positioning II anchorhandling, towing supply vessel, is expected to deliver in the fourth quarter of 2006. Continued progress is also being made on the construction of our other eight newbuilds. Just as previous vessel additions were largely responsible for the significant improvement in 2005 earnings, we believe our latest newbuilds will afford us significant increases in asset value and earnings capacity at an exciting period of industry expansion.”

At March, 2006 the Company had working capital of $44.9 million, including $33.5 million in cash. The Company had total debt of $250.1 million, consisting of $159.4 million of 7.75% senior notes, $10.3 million related to certain vessel mortgages, $0.3 million related to the Aker Joint Venture capital contribution (construction of the Aker PSV09 vessel), and $80.1 million under our revolving credit facilities.

GulfMark Offshore, Inc.
Press Release
May 4, 2006
Page 2

 
GulfMark will hold a conference call to discuss the earnings with analysts, investors and other interested parties at 9:00 A.M. EDT/8:00 A.M. CDT on May 5, 2006. Those interested in participating in the conference call should call 877/381-5943 (706/679-4543, if outside the U.S. and Canada) 5 minutes in advance of the start time and ask for the GulfMark 1st Quarter Earnings conference. The conference call will also be available via audio web cast and podcast at http://www.investorcalendar.com. A telephonic replay of the conference call will be available for 4 days, starting approximately 2 hours after the completion of the call, and can be accessed by dialing 800/642-1687 (international calls should use 706/645-9291) and entering access code 8625390.

GulfMark Offshore, Inc. provides marine transportation services to the energy industry through a fleet of sixty (60) offshore support vessels, primarily in the North Sea, offshore Southeast Asia, and the Americas.

Contact:                 Edward A. Guthrie, Executive Vice President
E-mail: Ed.Guthrie@GulfMark.com
(713) 963-9522

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve known and unknown risk, uncertainties and other factors. Among the factors that could cause actual results to differ materially are: price of oil and gas and their effect on industry conditions; industry volatility; fluctuations in the size of the offshore marine vessel fleet in areas where the Company operates; changes in competitive factors; delay or cost overruns on construction projects and other material factors that are described from time to time in the Company's filings with the SEC. Consequently, the forward-looking statements contained herein should not be regarded as representations that the projected outcomes can or will be achieved.

GulfMark Offshore, Inc.
Press Release
May 4, 2006
Page 3



Statement of Operations
  
Three Months Ended
  
   
March 31, 2006
  
December 31, 2005
  
March 31, 2005
  
               
Revenues 
  
$
47,675
  
$
51,588
  
$
48,066
  
Direct operating expenses 
    
21,784
    
22,567
    
19,156
  
Drydock expense  
    
2,756
    
2,536
    
1,549
  
Bareboat charter expense 
    
—
    
1,046
    
381
  
General and administrative expenses 
    
5,901
    
5,184
    
4,716
  
Depreciation expense 
    
7,061
    
7,161
    
7,198
  
Operating Income 
    
10,173
    
13,094
    
15,066
  
                     
Interest expense 
    
(4,298
)
  
(4,827
)
  
(4,770
)
Interest income 
    
165
    
260
    
48
  
Foreign currency gain (loss) and other 
    
511
    
790
    
(1,036
)
 
Income from continuing operations before income taxes
   
6,551
    
9,317
    
9,308
  
Income tax (provision) benefit  
    
(288
)
  
(1,140
)
  
(381
)
NET INCOME
  
$
6,263
  
$
8,177
  
$
8,927
  
                     
Earnings per share:
                    
Basic 
  
$
0.31
  
$
0.41
  
$
0.45
  
                     
Diluted
  
$
0.30
  
$
0.39
  
$
0.43
  
                     
Weighted average common shares
   
20,143
    
20,091
    
19,998
  
Weighted average diluted common shares
    
20,793
    
20,787
    
20,567
  


GulfMark Offshore, Inc.
Press Release
May 4, 2006
Page 4


Operating Statistics
  
Three Months Ended
  
   
March 31, 2006
  
December 31, 2005
  
March 31, 2005
  
Revenues by Region (000's)
              
North Sea based fleet 
  
$
35,822
  
$
39,160
  
$
38,460
  
Southeast Asia based fleet  
    
4,977
    
5,710
    
4,457
  
Americas based fleet  
    
6,876
    
6,718
    
5,149
  
                     
Rates Per Day Worked
                    
North Sea based fleet 
  
$
14,665
  
$
14,974
  
$
16,251
  
Southeast Asia based fleet  
    
6,142
    
6,083
    
5,744
  
Americas based fleet  
    
11,233
    
11,277
    
11,653
  
                     
Overall Utilization
                    
North Sea based fleet 
    
92.0
%
  
93.6
%
  
90.0
%
Southeast Asia based fleet  
    
83.7
%
  
94.9
%
  
89.7
%
Americas based fleet  
    
99.7
%
  
95.4
%
  
99.8
%
                     
Average Owned/Chartered Vessels
                    
North Sea based fleet  
    
30.0
    
31.0
    
30.3
  
Southeast Asia based fleet  
    
11.0
    
10.7
    
10.0
  
Americas based fleet  
    
7.0
    
7.0
    
5.0
  
Total
    
48.0
    
48.7
    
45.3
  
                     
Drydock Activity(1)
                    
North Sea based fleet  
    
4
    
1
    
3
  
Southeast Asia based fleet  
    
2
    
1
    
0
  
Americas based fleet  
    
1
    
1
    
0
  
Total
    
7
    
3
    
3
  
                     
Expenditures (000's) 
  
$
2,756
  
$
2,536
  
$
1,549
  
                     

   
At May 4, 2006
  
At May 9, 2005
  
   
2006(3)
 
2007(3)
  
2005(3)
  
2006(3)
  
Forward Contract Cover(2)
      
 
          
North Sea based fleet  
    
86.2
%
  
42.7
%
  
67.8
%
  
41.4
%
Southeast Asia based fleet  
    
44.8
%
  
9.0
%
  
62.7
%
  
12.7
%
Americas based fleet  
    
90.4
%
  
73.5
%
  
95.0
%
  
78.5
%
Total 
    
76.7
%
  
38.9
%
  
70.5
%
  
40.8
%

(1)Represents number of completed drydocks in period.
(2)Forward contract cover represents number of days vessels are under contract or option by customers divided by total calendar days vessels are available for charter hire.
(3)Represents full year (1/1-12/31).

GulfMark Offshore, Inc.
Press Release
May 4, 2006
Page 5



Balance Sheet Data ($000)
  
As of
March 31, 2006
  
As of
December 31, 2005
  
Cash
  
$
33,472
  
$
24,190
  
Working capital
    
44,859
    
34,941
  
Vessel and equipment, net
    
486,614
    
485,417
  
Construction in progress
    
25,886
    
25,029
  
Total assets
    
625,295
    
613,915
  
Long term debt
    
243,632
    
247,685
  
Shareholders' equity
    
336,877
    
320,096
  
               
Cash Flow Data  ($000)
    
Three Months
Ended
March 31, 2006
    
Twelve Months
Ended
December 31, 2005
  
Cash flow from operating activities
  
$
9,388
  
$
64,913
  
Cash flow used in investing activities
    
(855
)
  
(43,343
)
Cash flow (used in) provided by financing activities
    
55
    
(15,674
)