EX-99 3 ex99.htm

Exhibit 99
 

Trico Marine Reports Full Year 2002 and Fourth Quarter Results

 HOUSTON, Feb. 18 /PRNewswire-FirstCall/ -- Trico Marine Services, Inc. (Nasdaq: TMAR ) today announced a net loss for the fourth quarter ended December 31, 2002 of $14.4 million, or $(0.40) per share (diluted), after an extraordinary item, on revenues of $35.2 million. The net loss for the 2002 fourth quarter includes an extraordinary charge of $102,000 resulting from the early extinguishment of debt and a non-cash charge of $5.2 million due to an asset write-down. This compares to a net loss of $884,000, or $(0.02) per share (diluted), on revenues of $41.7 million for the fourth quarter last year.

The non-cash charge of $5.2 million is due to the write-down of the book value of two vessels. The Company stated these vessels are special-purpose towing vessels, with limited capabilities as conventional supply vessels. The write down was in response to market conditions for these vessels.

For the fiscal year ended December 31, 2002, the Company reported a net loss of $68.0 million, or $(1.87) per share (diluted), after extraordinary items, on revenues of $133.9 million. The loss for 2002 includes non-cash charges totaling $27.9 million, and extraordinary items of $11.0 million. The non-cash charge of $27.9 million in 2002 is due to the previously announced establishment of a $22.7 million valuation allowance against the Company's deferred tax assets, and the $5.2 million asset write-down. The extraordinary item of $11.0 million is due to the early retirement of debt, including the retirement of the Company's 8 1/2% senior notes. This compares to a net loss of approximately $6.9 million, or $(0.19) per share (diluted), on revenues of $182.6 million for 2001. The net loss for 2001 includes a non-cash charge of $24.3 million, before taxes, due to the write-down of the book value of eight vessels.

Since establishing the above-noted deferred tax asset valuation allowance, the Company has not recognized for financial reporting purposes any tax benefits from its operating loss.

Day rates for the Company's Gulf class supply boats averaged $5,177 with utilization of 56% in the fourth quarter 2002, compared to $6,568 with utilization of 59% in the fourth quarter last year. North Sea day rates averaged $12,483 with utilization of 86% in the fourth quarter of 2002, compared to $13,127 with utilization of 92% for the 2001 fourth quarter. Crew and line handlers averaged $2,600 with utilization of 74% in the fourth quarter of 2002 compared to $2,812 with utilization of 74% in the fourth quarter last year. Direct vessel operating expenses increased in the fourth quarter 2002 to $22.4 million, compared to $20.7 million for the fourth quarter 2001, due primarily to the addition of two new platform supply vessels and two new crew boats in 2002, increases in labor costs and insurance expenses, and the decline of the U.S. dollar versus the Norwegian Kroner.

"We continue to see low utilization of our fleet in the Gulf of Mexico. We are however pleased with our ability to maintain prices through this difficult market and are optimistic about our prospects later in 2003 due to strong commodity prices, and our intention to increase our presence in international markets," said Thomas E. Fairley, President and Chief Executive Officer. "We experienced the traditional seasonal slowdown in the North Sea towards the end of the quarter and anticipate it continuing through the first quarter of 2003. We do however believe activity will rebound later this year as more rigs go to work and as the construction season begins in the North Sea. In the fourth quarter, we took delivery of the second of two new PSVs we built in the North Sea and two of the three new deepwater crew boats. The third and final crew boat should commence operations in March 2003," added Fairley.

Trico Marine provides marine support services to the oil and gas industry, primarily in the Gulf of Mexico, the North Sea, Latin America and West Africa. The services provided by the Company's diversified fleet of vessels include the marine transportation of drilling materials, supplies and crews and support for the construction, installation, and maintenance and removal of offshore facilities.

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 statements. A description of risks and uncertainties attendant to Trico Marine Services, Inc. and its industry and other factors which could affect the Company's financial results are included in the Company's Securities and Exchange Commission filings.

 

TRICO MARINE SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited for 2002)

(In thousands, except share and per share amounts)
     

Three months Ended
December 31,

  

Twelve months Ended
December 31,

  

2002  

2001  

2002   

2001   

  

Revenues:  

$

35,216

 $ 

41,701

$

133,942

 $ 

182,625

  

  

  

  

  

  

  

  

  

  

Operating expenses:  

  

  

  

  

  

  

  

  

Direct vessel operating  

  

  

  

  

  

  

  

  

expenses and other  

  

 22,353

  

 20,677

  

 84,101

  

 82,144

  

Asset writedown  

  

 5,200

  

 ---

  

 5,200

  

 24,260

  

General and administrative

  

 4,042

  

 3,881

  

 15,077

  

 13,593

  

Loss (gain) on sale  

  

  

  

  

  

  

  

  

of assets, net  

  

 ( 3

)

 21

  

 ( 454

)

 ( 937

)

  

Amortization of marine  

  

  

  

  

  

  

  

  

inspection costs  

  

 2,335

  

 3,428

  

 10,225

  

 13,424

  

Depreciation and  

  

  

  

  

  

  

  

  

amortization expense  

  

 8,514

  

 7,987

  

 31,870

  

 32,888

  

  

  

42,441

  

 35,994

  

 146,019

  

 165,372

  

Operating income (loss)  

  

 ( 7,225

)

 5,707

  

 ( 12,077

)

 17,253

  

Amortization of deferred  

  

  

  

  

  

  

  

  

financing costs  

  

 198

  

 349

  

 1,127

  

 1,366

  

Interest expense  

  

 7,927

  

 6,357

  

 28,432

  

 26,232

Other expense (income), net

( 1,396

 )

32

794

( 105

 )

Loss before taxes and  

  

extraordinary items  

  

 ( 13,954

)

 ( 1,031

)

 ( 42,430

)

 ( 10,240

)

  

Income tax expense (benefit)  

  

 393

  

 ( 147

)

 14,550

  

 ( 3,317

)

  

Loss before extraordinary  

  

  

  

  

  

  

  

  

items  

  

 ( 14,347

)

 ( 884

)

 ( 56,980)

 ( 6,923

 )

  

Extraordinary items  

  

 ( 102

)

 ---

  

 ( 10,998)

 ---

  

Net loss  

 $

( 14,449

)

$

( 884

)

$

( 67,978)

$

( 6,923

)

  

  

  

  

  

  

  

  

  

  

Basic and Diluted loss  

  

  

  

  

  

  

  

  

per common share:  

  

  

  

  

  

  

  

  

Loss before  

  

  

  

  

  

  

  

  

extraordinary items  

$

( 0.40

)

$

( 0.02

)

$

( 1.57

)

$

( 0.19

 )

  

Extraordinary items  

  

 ( 0.00

)

 ---

  

 ( 0.30

)

 ---

  

Net loss  

$

( 0.40

)

 $

( 0.02

)

$

( 1.87

)

$

( 0.19

 )

  

Average common shares

  

  

  

  

  

  

  

  

outstanding  

36,267,118

 36,254,335

 36,260,993

  

36,250,604

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Shareholders' Equity  

$

295,326

 $

291,726

 $

295,326

 $

291,726

  

  

  

  

  

  

  

  

  

  

Average Day Rates:  

  

  

  

  

  

  

  

  

Supply  

$

5,177

 $

6,568

 $

5,575

 $

7,043

  

Supply /Anchor  

  

  

  

  

  

  

  

  

Handling (N. Sea)  

  

 12,483

  

 13,127

 $

11,641

  

 11,884

  

Crew/line handling  

  

 2,600

  

 2,812

  

 2,654

  

 2,714

  

  

  

  

  

  

  

  

  

  

Utilization:  

  

  

  

  

  

  

  

  

Supply  

  

 56

%

 59

%

 53

%

 69

%

  

Supply /Anchor  

  

  

 

  

 

  

  

Handling (N. Sea)  

  

 86

%

 92

%

 89

%

 93

%

  

Crew/line handling

  

 74

%

 74

%

 67

%

 78

%

  

  

  

  

  

  

  

  

  

  

Average no. of Vessels:  

  

  

  

  

  

  

  

  

Supply  

  

 48.0

  

 48.0

  

 48.0

  

 52.5

  

Supply/Anchor  

  

  

  

  

  

  

  

  

Handling (N. Sea )  

  

 20.0

  

 18.0

  

 18.8

  

 18.0

  

Crew/line handling  

  

 16.7

  

 20.0

  

 17.3

  

 20.5