-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Llo5MLNEQ5YN/Rv2kz3ATHEHnB1YxvNy0hvWsJteAlDEUt5d6g85rVRUs75XL9ym Bzo/9buMPJTj4vF9RW9EOA== 0000925328-99-000070.txt : 19990630 0000925328-99-000070.hdr.sgml : 19990630 ACCESSION NUMBER: 0000925328-99-000070 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990629 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HVIDE MARINE INC CENTRAL INDEX KEY: 0000922341 STANDARD INDUSTRIAL CLASSIFICATION: DEEP SEA FOREIGN TRANSPORTATION OF FREIGHT [4412] IRS NUMBER: 650524593 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 000-28732 FILM NUMBER: 99655652 BUSINESS ADDRESS: STREET 1: 2200 ELLER DR BUILDING 27 STREET 2: PO BOX 13038 CITY: FORT LAUDERDALE STATE: FL ZIP: 33316 BUSINESS PHONE: 3055232200 MAIL ADDRESS: STREET 1: 2200 ELLER DRIVE BLDG 27 STREET 2: 2200 ELLER DRIVE BLDG 27 CITY: FT LAUDERDALE STATE: FL ZIP: 33316 11-K 1 FORM 11-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 11-K [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For fiscal year ended December 31, 1998 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-28732 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: HVIDE MARINE INCORPORATED RETIREMENT PLAN AND TRUST B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office HVIDE MARINE INCORPORATED 2200 Eller Drive, P.O. Box 13038 Ft. Lauderdale, Florida 33316 Telephone: (954) 523-2200 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan Administrator has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. HVIDE MARINE INCORPORATED RETIREMENT PLAN AND TRUST Date: June 29, 1999 By: /s/ GARY C. VAIL Gary C. Vail, Plan Administrator HVIDE MARINE INCORPORATED RETIREMENT PLAN AND TRUST Financial Statements and Supplemental Schedules Year ended December 31, 1998 and 1997 INDEX Report of Independent Auditors.............................................F-2 Audited Financial Statements: Statements of Net Assets Available for Benefits, With Fund Information...................................................F-3 Statement of Changes in Net Assets Available for Benefits, With Fund Information...................................................F-5 Notes to Financial Statements...........................................F-9 Supplemental Schedules: Schedule of Assets Held for Investment Purposes........................F-13 Schedule of Reportable Transactions....................................F-14 F-1 Report of Independent Auditors Compensation Committee Hvide Marine Incorporated Retirement Plan and Trust We have audited the accompanying statements of net assets available for benefits of Hvide Marine Incorporated Retirement Plan and Trust (the Plan) as of December 31, 1998 and 1997, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan at December 31, 1998 and 1997, and the changes in its net assets available for benefits for the years then ended, in conformity with generally accepted accounting principles. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplemental schedules of assets held for investment purposes as of December 31, 1998 and reportable transactions for the year then ended, are presented for purposes of additional analysis and are not a required part of the financial statements but are supplemental information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. These supplemental schedules are the responsibility of the Plan's management. The Fund information in the statement of net assets available for benefits and the statement of changes in net assets available for benefits is presented for purposes of additional analysis rather than to present the net assets available for benefits and changes in net assets available for benefits of each fund. The supplemental schedules and Fund information have been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. /s/ ERNST & YOUNG LLP June 8, 1999 Miami, Florida F-2 Hvide Marine Incorporated Retirement Plan and Trust Statements of Net Assets Available for Benefits, With Fund Information December 31, 1998 and 1997
Spectrum Dividend Equity Equity Inter- High Yield Income Growth Income Index national Mid Cap New America Fund Fund Fund Fund 500 Fund Stock Fund Growth Growth Fund ----------- ---------- ----------- ----------- ----------- ----------- -------- ----------- 1998 Assets Investments at fair value (Note 3): Mutual Funds............ $ 267,449 $ 258,199 $ 350,465 $ 4,357,747 $ 5,899,372 $ 583,256 $ 1,611,672 $799,060 Cash.................... -- -- -- -- -- -- -- -- Common Trust Fund....... -- -- -- -- -- -- -- -- Company Stock........... -- -- -- -- -- -- -- -- ----------- ---------- ----------- ----------- ----------- ----------- ----------- -------- 267,449 258,199 350,465 4,357,747 5,899,372 583,256 1,611,672 799,060 Contributions Receivable: Participants............ 4,247 3,889 3,213 24,208 32,976 3,954 12,992 6,952 Employer................ 2,878 2,882 2,290 18,758 24,710 2,680 9,300 4,696 ----------- ---------- ----------- ----------- ----------- ----------- ----------- -------- Net assets available for benefits.................. $ 274,574 $ 264,970 $ 355,968 $ 4,400,713 $ 5,957,058 $ 589,890 $ 1,633,964 $810,708 =========== ========== =========== =========== =========== =========== =========== ======== 1997 Assets Investments: Mutual Funds............ $ 162,994 $ 117,383 $ -- $ 4,129,048 $ 3,932,043 $ 671,618 $ 1,052,612 $409,004 Common Trust Fund....... -- -- -- -- -- -- -- -- Company Stock........... -- -- -- -- -- -- -- -- ----------- ---------- ----------- ----------- ----------- ----------- ----------- -------- 162,994 117,383 -- 4,129,048 3,932,043 671,618 1,052,612 409,004 Contributions Receivable: Participants............ 2,371 1,597 -- 21,080 18,420 4,207 6,840 4,406 Employer................ 677 434 -- 5,443 4,735 1,018 1,563 974 ----------- ---------- ----------- ----------- ----------- ----------- ----------- -------- Net assets available for benefits.................. $ 166,042 $ 119,414 $ -- $ 4,155,571 $ 3,955,198 $ 676,843 $ 1,061,015 $414,384 =========== ========== =========== =========== =========== =========== =========== ========
See accompanying notes. F-3 Hvide Marine Incorporated Retirement Plan and Trust Statements of Net Assets Available for Benefits, With Fund Information (continued) December 31, 1998 and 1997
Science and Stable Value New Asia New Horizons Technology Small-Cap Hvide Marine Common Trust Fund Fund Fund Value Fund Common Stock Fund Other Total ----------- ------------- ------------ ---------- ------------ ----------- --------- ------------ 1998 Assets Investments at fair value (Note 3): Mutual Funds........ $ 70,938 $ 532,618 $ 1,571,747 $ 2,776,526 $ -- $ -- $ -- $ 19,079,049 Cash................ -- -- -- -- -- -- 16,000 16,000 Common Trust Fund.............. -- -- -- -- -- 10,264,999 -- 10,264,999 Company Stock....... -- -- -- -- 416,674 -- -- 416,674 ----------- ------------- ------------ ----------- ---------- ------------- -------- ------------ 70,938 532,618 1,571,747 2,776,526 416,674 10,264,999 16,000 29,776,722 Contributions Receivable: Participants........ 929 5,877 13,910 14,013 3,354 46,993 -- 177,507 Employer............ 758 3,859 10,464 11,858 2,207 46,511 -- 143,851 ----------- ------------- ------------ ----------- ---------- ------------- -------- ------------ Net assets available for benefits............ $ 72,625 $ 542,354 $ 1,596,121 $ 2,802,397 $ 422,235 $ 10,358,503 $ 16,000 $ 30,098,080 =========== ============= ============ =========== ========== ============= ======== ============ 1997 Assets Investments: Mutual Funds........ $ 41,971 $ 704,253 $ 879,804 $ 3,871,570 $ -- $ -- $ -- $ 15,972,300 Common Trust Fund -- -- -- -- -- 8,779,589 -- 8,779,589 Company Stock....... -- -- -- -- 293,341 -- -- 293,341 ----------- ------------- ------------ ----------- ---------- ------------- -------- ------------ 41,971 704,253 879,804 3,871,570 293,341 8,779,589 -- 25,045,230 Contributions Receivable: Participants........ 467 3,751 8,094 14,204 1,834 43,867 -- 131,138 Employer............ 115 854 1,771 3,930 487 13,558 -- 35,559 ----------- ------------- ------------ ----------- ---------- ------------- -------- ------------ Net assets available for benefits............. $ 42,553 $ 708,858 $ 889,669 $ 3,889,704 $ 295,662 $ 8,837,014 $ -- $ 25,211,927 =========== ============= ============ =========== ========== ============= ======== ============
See accompanying notes. F-4 Hvide Marine Incorporated Retirement Plan and Trust Statement of Changes in Net Assets Available for Benefits Year ended December 31, 1998
Equity New High Spectrum Dividend Equity Index Int'l Mid America Yield Income Growth Income 500 Stock Cap Growth Fund Fund Fund Fund Fund Fund Growth Fund --------- --------- --------- ---------- ---------- ---------- ----------- ----------- Additions to net assets attributed to: Investment income: Net appreciation (depreciation) in fair value of investments............... $ (13,731) $ (3,494) $ (35) $ 62,730 $1,124,279 $ 74,001 $ 207,237 $ 30,754 Dividends................. 21,448 18,337 12,428 335,457 71,119 21,237 31,659 58,580 Participant contributions... 53,330 50,171 34,312 362,317 406,736 65,518 186,161 118,395 Employer contributions...... 38,982 31,066 13,322 248,638 265,804 37,833 96,588 56,735 --------- --------- --------- ---------- ---------- ---------- ----------- ---------- Total additions............... 100,029 96,080 60,027 1,009,142 1,867,938 198,589 521,645 264,464 Deductions from net assets attributed to: Benefits paid directly to participants........... (8,285) (5,556) -- (80,408) (96,657) (142,810) (65,286) (20,572) --------- --------- --------- ---------- ---------- ---------- ----------- ---------- Total deductions.............. (8,285) (5,556) -- (80,408) (96,657) (142,810) (65,286) (20,572) --------- --------- --------- ---------- ---------- ---------- ----------- ---------- Net increase (decrease) prior to interfund transfers.................... 91,744 90,524 60,027 928,734 1,771,281 55,779 456,359 243,892 Interfund transfers........... 16,788 55,032 295,941 (683,592) 230,579 (142,732) 116,590 152,432 --------- --------- --------- ---------- ---------- ---------- ----------- ---------- Net increase (decrease)....... 108,532 145,556 355,968 245,142 2,001,860 (86,953) 572,949 396,324 Net assets available for benefits at beginning of year..................... 166,042 119,414 -- 4,155,571 3,955,198 676,843 1,061,015 414,384 --------- --------- --------- ---------- ---------- ---------- ----------- ---------- Net assets available for benefits at end of year................. $274,574 $ 264,970 $ 355,968 $4,400,713 $5,957,058 $ 589,890 $ 1,633,964 $ 810,708 ========= ========= ========= ========== ========== ========== =========== ==========
See accompanying notes. F-5 Hvide Marine Incorporated Retirement Plan and Trust Statement of Changes in Net Assets Available for Benefits (continued) Year ended December 31, 1998
Stable Hvide Value Stable New New Science & Small-Cap Marine Common Value Cash Asia Horizons Technology Value Common Trust Fund Not Fund Fund Fund Fund Stock Fund Schedule E Other Invested Total Additions to net assets attributed to: Investment income: Net appreciation (depreciation) in fair value of investments.. $(4,021) $ 13,417 $ 363,174 $ (652,923) $(717,809) $ -- $ -- $ -- $ -- $ 483,579 Dividends..... 1,242 27,224 37,456 196,807 -- 313,642 236,627 -- -- 1,383,263 Participant contributions.. 9,039 99,271 165,689 236,181 54,978 297,160 313,050 -- -- 2,452,308 Employer contributions.. 6,213 49,628 102,339 165,179 26,405 287,863 265,564 (79,849) -- 1,612,310 ------- --------- ---------- ---------- --------- ---------- ----------- -------- ------- ----------- Total additions (decrease)........ 12,473 188,540 665,658 (54,756) (636,426) 898,665 815,241 (79,849) -- 5,931,460 Deductions from net assets attributed to: Benefits paid directly to participants... -- (22,801) (36,897) (33,757) (1,093) (267,101) (264,084) -- -- (1,045,307) ------- --------- ---------- ---------- --------- ---------- ----------- -------- ------- ----------- Total deductions... -- (22,801) (36,897) (33,757) (1,093) (267,101) (264,084) -- -- (1,045,307) ------- --------- ---------- ---------- --------- ---------- ----------- -------- ------- ----------- Net increase (decrease) prior to interfund transfers......... 12,473 165,739 628,761 (88,513) (637,519) 631,564 551,157 (79,849) -- 4,886,153 Interfund transfers (decrease)........ 17,599 (333,243) 74,691 (998,794) 764,092 (9,468,578) 9,807,346 79,849 16,000 -- ------- --------- ---------- ---------- --------- ---------- ----------- -------- ------- ----------- Net increase....... 30,072 (167,504) 703,452 (1,087,307) 126,573 (8,837,014) 10,358,503 -- 16,000 4,886,153 Net assets available for benefits at beginning of year ......... 42,553 708,858 889,669 3,889,704 295,662 8,837,014 -- -- -- 25,211,927 -------- --------- ---------- ----------- --------- ---------- ----------- -------- ------ ----------- Net assets available for benefits at end of year....... $ 72,625 $ 541,354 $1,593,121 $2,802,397 $ 422,235 $ -- $10,358,503 $ -- $16,000 $30,098,080 ======= ========= ========== ========== ========= ========== =========== ======== ======= ===========
See accompanying notes. F-6 Hvide Marine Incorporated Retirement Plan and Trust Statement of Changes in Net Assets Available for Benefits, With Fund Information Year ended December 31, 1997
Equity New High Spectrum Equity Index Int'l Mid America Yield Income Income 500 Stock Cap Growth Fund Fund Fund Fund Fund Growth Fund -------- ---------- -------- --------- --------- ---------- ---------- Additions to net assets attributed to: Investment income: Net appreciation (depreciation) in fair value of investments............................... $ 5,772 $ 3,440 $ 456,240 $ 757,277 $ (28,077) $ 128,960 $ 48,945 Dividends.................................... 8,567 6,832 395,021 79,062 35,846 10,924 19,365 Participant contributions...................... 37,932 24,647 297,641 242,925 67,255 88,396 50,974 Employer contributions......................... 23,781 16,059 189,609 151,617 40,377 51,017 34,587 -------- -------- ---------- ----------- --------- ----------- --------- Total additions.................................. 76,052 50,978 1,338,511 1,230,881 115,401 279,297 153,871 Deductions from net assets attributed to: Benefits paid directly to participants......... (9,561) (4,185) (195,555) (191,214) (9,984) (12,744) (10,736) -------- -------- ---------- ----------- --------- ----------- --------- Total deductions................................. (9,561) (4,185) (195,555) (191,214) (9,984) (12,744) (10,736) -------- -------- ---------- ----------- --------- ----------- --------- Net increase (decrease) prior to interfund transfers....................................... 66,491 46,793 1,142,956 1,039,667 105,417 266,553 143,135 Interfund transfers.............................. 67,203 10,275 317,189 537,450 4,579 55,507 (144,839) -------- -------- ---------- ----------- --------- ----------- --------- Net increase (decrease).......................... 133,694 57,068 1,460,145 1,577,117 109,996 322,060 (1,704) Net assets available for benefits at beginning of year........................................ 32,348 62,346 2,695,426 2,378,081 566,847 738,955 416,088 -------- -------- ---------- ----------- --------- ----------- --------- Net assets available for benefits at end of year. $166,042 $119,414 $4,155,571 $ 3,955,198 $ 676,843 $ 1,061,015 $ 414,384 ======== ======== ========== =========== ========= =========== =========
See accompanying notes. F-7 Hvide Marine Incorporated Retirement Plan and Trust Statement of Changes in Net Assets Available for Benefits, With Fund Information (continued) Year ended December 31, 1997
Stable Hvide Value New New Science & Small-Cap Marine Common Asia Horizons Technology Value Common Trust Fund Fund Fund Fund Stock Fund Total ---------- ----------- ----------- ---------- ----------- ----------- ----------- Additions to net assets attributed to: Investment income: Net realized and unrealized appreciation (depreciation) in fair value....... $ (34,195) $ 52,176 $ (89,202) $ 534,246 $ 5,821 $ -- $ 1,841,403 Dividends............................ 628 17,092 83,561 247,042 -- 508,938 1,412,878 Participant contributions.............. 15,863 62,659 96,731 209,885 18,031 594,488 1,807,427 Employer contributions................. 7,673 38,156 55,522 138,299 9,168 467,828 1,223,693 --------- ---------- --------- ---------- ---------- ----------- ------------ Total additions.......................... (10,031) 170,083 146,612 1,129,472 33,020 1,571,254 6,285,401 Deductions from net assets attributed to: Benefits paid directly to participants. (7,184) (12,689) (5,089) (69,080) (2,779) (583,506) (1,114,306) --------- ---------- --------- ---------- ---------- ----------- ------------ Total deductions......................... (7,184) (12,689) (5,089) (69,080) (2,779) (583,506) (1,114,306) --------- ---------- --------- ---------- ---------- ----------- ------------ Net increase (decrease) prior to interfund transfers.............................. (17,215) 157,394 141,523 1,060,392 30,241 987,748 5,171,095 Interfund transfers...................... (108,722) (243,997) 26,057 260,037 261,797 (1,042,536) -- --------- ---------- --------- ---------- ---------- ----------- ------------ Net increase (decrease).................. (125,937) (86,603) 167,580 1,320,429 292,038 (54,788) 5,171,095 Net assets available for benefit at inception of plan....................... 168,490 795,461 722,089 2,569,275 3,624 8,891,802 20,040,832 --------- ---------- --------- ---------- ---------- ----------- ------------ Net assets available for benefit at end of year .......................... $ 42,553 $ 708,858 $ 889,669 $3,889,704 $ 295,662 $ 8,837,014 $ 25,211,927 ========= ========== ========= ========== ========== =========== ============
See accompanying notes. F-8 Hvide Marine Incorporated Retirement Plan and Trust Notes to Financial Statements December 31, 1998 1. Summary of Significant Accounting Policies Basis of Presentation The accounting records of the Hvide Marine Incorporated Retirement Plan and Trust (the Plan) are maintained on the accrual basis. All securities transactions of the Plan are recorded as of the trade date. Valuation of Investments Marketable securities are sated at fair value. Securities traded on a national securities exchange are valued at the last reported sales price on the last business day of the plan year. The fair value of the participation units owned by the Plan in the common trust fund is based on quoted redemption values on the last business day of the plan year. The shares of registered investment companies are valued at quoted market prices which represent the net asset values of shares held by the Plan at year-end. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. 2. Description of Plan A complete description of Plan provisions including those relating to contributions, vesting, withdrawals, and distributions is disclosed in the Summary Plan Description and the Plan Document. Copies of these documents are available from Hvide Marine Incorporated's Benefits Department. The following summary should be read in conjunction with the aforementioned documents. General The Plan is a defined contribution plan subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA) and covers substantially all employees of Hvide Marine Incorporated (the Company or the Employer). The plan was adopted effective July 1, 1985. F-9 Hvide Marine Incorporated Retirement Plan and Trust Notes to Financial Statements (continued) 2. Description of Plan (continued) Contributions Participants may contribute up to 12% of pre-tax and up to 1% of after-tax annual compensation up to the current dollar limit set by the Internal Revenue Service. The Company may make a discretionary matching based on the participant's eligibility. The Company may also, at its discretion, make additional contributions based on the participant's compensation. Participants may select to invest contributions among several investment options that involve investments in money market, bond, investment contract trusts, equity funds and the Company's common stock. Participant Accounts Each participant's account is credited with the participant's contributions, the appropriate portion of the Employer's contributions, and an allocation of Plan earnings. The benefit to which a participant is entitled is the benefit that can be provided from the participant's account. Participant contributions and related investment income are at all times 100% vested and nonforfeitable. Participants become vested in Employer contributions and actual earnings thereon according to the vesting schedule described below. Vesting, Withdrawals and Distributions Participants are immediately vested in their contributions plus actual earnings thereon. Vesting in any Employer contributions plus actual earnings thereon is based on years of continuous service. A participant vests 20% in Employer contributions each year until they are 100% vested after five years of continuous service or upon death, disability or retirement. Withdrawals and distributions are controlled in accordance with the provisions of the Plan. Administrative Expenses All of the administrative expenses of the Plan may be paid by the Company or the Plan. During 1998, the Company paid substantially all of the administrative expenses of the Plan. Plan Termination Although it has not expressed any intent to do so, the Company has the right under the Plan, to discontinue its contributions and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants will become 100% vested in their accounts. F-10 Hvide Marine Incorporated Retirement Plan and Trust Notes to Financial Statements (continued) 3. Investments The following table presents the fair value of investments with those representing 5% or more of the Plan's assets being separately identified at December 31, 1998 and 1997:
1998 1997 ---------------- ---------------- Mutual funds: Equity Income Fund......................................... $ 4,357,747 $ 4,129,049 Equity Index 500 Fund...................................... 5,899,372 3,932,043 Mid Cap Growth............................................. 1,611,672 -- Science & Technology Fund.................................. 1,571,747 -- Small Cap Value Fund....................................... 2,776,526 3,871,570 Other...................................................... 2,861,985 4,039,638 ---------------- ---------------- 19,079,049 15,972,300 ---------------- ---------------- Cash........................................................... 16,000 -- Common trust fund: Stable Value Fund Schedule E............................... 10,264,999 -- Stable Value Fund.......................................... -- 8,779,589 Common stock: Hvide Marine Incorporated.................................. 416,674 293,341 ---------------- ---------------- $ 29,776,722 $ 25,045,230 ================ ================
During the years ended December 31, 1998 and 1997, the Plan's net appreciation (depreciation) in the fair value of investments was as follows:
1998 1997 ---------------- ---------------- Mutual funds................................................... $ 1,201,388 $ 1,835,582 Common trust fund.............................................. -- -- Common stock................................................... (717,809) 5,821 ---------------- ---------------- $ 483,579 $ 1,841,403 ================ ================
4. Income Tax Status The Plan has received a determination letter from the Internal Revenue Service dated November 18, 1996, stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code (the Code) and, therefore, the related trust is exempt from taxation. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification. The Plan Administrator believes the Plan is being operated in compliance with the applicable requirements of the Code and, therefore, believes that the Plan is qualified and the related trust is tax exempt. F-11 Hvide Marine Incorporated Retirement Plan and Trust Notes to Financial Statements (continued) 5. Year 2000 Issue (Unaudited) The Plan Sponsor has determined that it will be necessary to take certain steps in order to ensure that the Plan's information systems are prepared to handle Year 2000 dates. The Plan Sponsor is taking a two phase approach. The first phase addresses internal systems that must be modified or replaced to function properly. Both internal and external resources are being utilized to replace or modify existing software applications, and test the software and equipment for the Year 2000 modifications. The Plan Sponsor anticipates substantially completing this phase of the project by June 1999. For the second phase of the project, Plan management established formal communications with its third party service providers to determine that they have developed plans to address their own Year 2000 problems as they relate to the Plan's operations. All third party service providers have indicated that they will be Year 2000 compliant by early 1999. If modification of data processing systems of either the Plan, the Plan Sponsor, or its service providers are not completed timely, the Year 2000 problem could have a material impact on the operations of the Plan. Plan management has not developed a contingency plan, because they are confident that all systems will be Year 2000 ready. 6. Other Matters As of June 25, 1999, the fair value of the Company's common stock, as held by the Plan as of December 31, 1998, was $169,170. F-12 Hvide Marine Incorporated Retirement Plan and Trust Line 27a - Schedule of Assets Held for Investment Purposes December 31, 1998
Description of Investment, Including Maturity Date, Rate Identity of Issuer, Borrower, of Interest, Par on Maturity Current Lessor or Similar Party Value Cost Value Mutual Funds: *T. Rowe Price Trust Company: High Yield Fund $ 272,572 $ 267,449 Spectrum Income Fund 259,353 258,199 Dividend Growth Fund 347,866 350,465 Equity Income Fund 3,857,949 4,357,747 Equity Index 500 Fund 3,942,975 5,899,372 International Stock Fund 535,056 583,256 Mid Cap Growth 1,269,584 1,611,673 New America Growth Fund 733,055 799,060 New Asia Fund 96,613 70,938 New Horizons Fund 510,123 532,618 Science & Technology Fund 1,303,128 1,571,747 Small-Cap Value Fund 2,804,001 2,776,525 --------------- ---------------- 15,932,275 19,079,049 *T. Rowe Price Trust Company Cash 16,000 16,000 Common trust fund: *T. Rowe Price Trust Company Stable Value Fund Schedule E 10,264,999 10,264,999 *Hvide Marine Incorporated Common Stock 1,115,527 416,674 --------------- ---------------- $ 27,328,801 $ 29,776,722 =============== ================
*Indicates party in-interest F-13 Hvide Marine Incorporated Retirement Plan and Trust Schedule of Reportable Transactions December 31, 1998
Current Value of Asset on Net Identity of Party Description of Purchase Selling Cost of Transaction Gain Involved Assets Price Price Asset Date or Loss ---------------- ------------------------------- ---------- ----------- ----------- ----------- ----------- Category (i)--Individual transactions in excess of 5% of the plan assets: T. Rowe Price Trust Company Stable Value Fund Schedule E $9,300,171 $ -- $ 9,300,171 $ 9,300,171 $ -- T. Rowe Price Trust Company Stable Value Fund -- 9,300,171 9,300,171 9,300,171 -- Category (iii)--Series of transactions involving securities of the same issue aggregating in excess of 5% of the plan assets: T. Rowe Price Trust Company Equity Income Fund $1,588,506 $ -- $ 1,588,506 $ 1,588,506 $ -- Equity Income Fund -- 1,422,538 1,270,069 1,422,538 152,469 T. Rowe Price Trust Company Equity Index 500 Fund 1,619,171 -- 1,619,171 1,619,171 -- Equity Index 500 Fund -- 776,121 644,361 776,121 131,760 T. Rowe Price Trust Company Small-Cap Value Fund 1,000,248 -- 1,000,248 1,000,248 -- Small-Cap Value Fund -- 1,442,369 1,362,958 1,442,369 79,411 T. Rowe Price Trust Company Stable Value Fund Schedule E 11,470,844 -- 11,470,844 11,470,844 -- Stable Value Fund Schedule E -- 1,205,843 1,205,843 1,205,843 -- T. Rowe Price Trust Company Stable Value Fund 2,353,551 -- 533,000 533,000 -- Stable Value Fund -- 11,133,140 11,133,140 11,133,140 --
There were no category (ii) or (iv) reportable transactions during 1998. F-14 Exhibit A Consent of Independent Certified Public Accountants We consent to the incorporation by reference in the Registration Statement (Form S-8 No. 333-19543) pertaining to the Hvide Marine Incorporated Retirement Plan and Trust of our report dated June 8, 1999, with respect to the financial statements and supplemental schedules of the Hvide Marine Incorporated Retirement Plan and Trust included in this Annual Report (Form 11-K) for the year ended December 31, 1998. /s/ Ernst & Young LLP Miami, Florida June 25, 1999 -----END PRIVACY-ENHANCED MESSAGE-----