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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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Form 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of Earliest Event Reported): August 31, 2001
GulfMark Offshore, Inc.
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(Exact Name of Registrant as Specified in its Charter)
Delaware
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(State or Other Jurisdiction of Incorporation)
000-22853 76-0526032
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(Commission File Number) (I.R.S. Employer Identification No.)
4400 Post Oak Parkway, Suite 1170, Houston, Texas 77027
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(Address of Principal Executive Offices) (Zip Code)
(713)963-9522
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(Registrant's Telephone Number, Including Area Code)
N/A
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(Former Name or Former Address, if Changed Since Last Report)
(Exhibit Index Located on Page 3)
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ITEM 9. REGULATION FD DISCLOSURE
This filing 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.
Readers should consider all of these risk factors as well as other
information contained in this report.
On September 4, 2001, Bruce A. Streeter, President and COO of the Company,
will make a public presentation at the Lehman Brothers CEO Energy Conference in
New York. The presentation will focus on a review of the growth of the Company
over the last decade and the significant events which have resulted in such
growth. He will highlight the acquisitions and events which have occurred in
2001 and disclose the estimated relative contribution of each of the events to
the estimated doubling of earnings per share from 2001E to 2004E (Slide 4).
The nine vessel newbuild program will be highlighted with the estimated
earnings per share contribution from the vessels and earnings before interest,
taxes and depreciation (EBITDA) also disclosed (Slide 12). This information
was based on assumptions regarding dayrates (average of trailing twelve months
at April 30, 2001 for the newbuild vessel estimates) and utilization consistent
with current market conditions. There is no assurance that these conditions
will prevail in the forecasted periods. Updates to the forward contract cover
for the Company's owned fleet for 2001 and 2002 will also be presented (Slide
20 & 21).
The following slides make up the complete presentation excluding
introductory matters. In providing this information, the Company is not
claiming or confirming that the delivery schedule of the newbuild vessels will
be achieved or that the estimated earnings per share or EBITDA contributions
will in fact be achieved.
The information contained in the slides is summary information that is
intended to be considered in the context of our SEC filings and other public
announcements that we may make, by press release or otherwise, from time to
time. We undertake no duty or obligation to publicly update or revise the
information contained in this report, although we may do so from time to
time as our management believes is warranted. Any such updating may be
made through the filing of other reports or documents with the SEC,
through press releases or through other public disclosures.
The information included pursuant to this Item 9 shall not be deemed to be
incorporated by reference into any filing made by the Company pursuant to the
Securities Act of 1933.
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Slide #1
Company Overview
($ in millions except per share amounts)
Shares Outstanding 8,199,137
Current Market Cap $289.0
Long Term Debt $173.8
Working Capital $ 27.2
EPS:
1999A $ 0.22
2000A $ 0.65*
First Call Est.:
2001E $ 2.51
2002E $ 3.83
*Excludes gain on sale of assets.
Slide #2
Fleet Summary
North Southeast West
Sea Asia Brazil Africa Total
----- --------- ------ ------ -----
PSVs 24 1 1 2 28
AHTS 2 10 1 1 14
SPVs 6 1 1 0 8
----- --------- ------ ------ -----
Total 32 12 3 3 50
----- --------- ------ ------ -----
Owned 22 12 2 1 37
----- --------- ------ ------ -----
Avg. Age (Years) 11.3 18.8 13.9 NM 14.5
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Slide #3
Measured Growth for Last Decade
Vessels Event
------- --------------------------------------------------
1990 11 Lehman Brothers' Investment
1992 15 BP Shipping Acquisition
1994 20
1996 23 Maritime Pte. Acquisition
1998 42 UT755 New Build Design, Highland Spirit, Brovig
Acquisition, Bender New Builds
2000 47 New Build Program
2001 50 Clear Seas Acquisition, Tonnage Tax Election,
Patriot Acquisition, Sea Truck Acquisition
2003 54
Slide #4
Income Per Share Growth
2001E - 2004E
2001 2002 2003 2004
----- ----- ----- -----
1st Call Base Line (1/1/01) $1.50 $1.50 $1.50 $1.50
Estimated Impact of:
Newbuild Program .15 .75 1.75 2.75
Day Rate/Utilization .46 .79 .79 .79
Sea Truck Acquisition .20 .45 .45 .45
H. Patriot Acquisition .16 .18 .18 .18
Clear Seas Acquisition .04 .16 .17 .18
----- ----- ----- -----
Revised Estimate $2.51 $3.83 $4.84 $5.85
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Slide #5
Positive Services Outlook
% Increase in E&P Expenditures
Global International
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2000A 15.0% 6.0%
2001E 12/00 Survey 19.1% 19.0%
2001E 06/01 Survey 23.4% 24.4%
- Cash Flows Drive E&P Expenditures
- Half of the Companies Project 10+% Increases in 2002
Source: Lehman Brothers' Equity Research.
Slide #6
Business Strategy - Near Term
- Focus on Customer Needs, Deepwater and Project Requirements
- Replace Bareboat Chartered Vessels with Owned Vessels Having Specs in Demand
by Customers
- Increase Term Contract Cover
- Maximize Benefit from "Profit Share" and "Vessel Pools"
- Acquire Vessels with Immediate/Sustained Earnings
- Identify Specialized Diversification Situations Yielding High Rates of Return
Slide #7
Clear Seas Acquisition
- 2 Special Purpose/Multi-Role Vessels Acquired
- Cost of GBP6.0 Million ($8.7 Million)
- 1 Year Charter Extension of 6 Year Relationship - BHP
- Annual Income Contribution = $0.14 - $0.16
- 2.8 Year Payback
- Additional Equipment Enhances Market Niche
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Slide #8
Summary - Recent Acquisitions
Sea Truck H. Patriot
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Number of Vessels 5 1
Average Length of Charter* 25 Months 33 Months
Purchase Price $61.8 Million $6.9 Million
Annual Net Income Per
Share Contribution $0.40 - $0.50 $0.16 - $0.20
Project Payback(Unleveraged) 6.5 Yrs. 2.0 Yrs.
Annual EBITDA $9.4 Million $3.4 Million
*Includes Options
Slide #9
New Build Program Summary
- 9 Latest Design & Widely Accepted Vessels
- 6 PSVs: 2 - UT 745 and 4 - UT 755/L
- 3 UT 722 L AHTS
- $184.0 Million Cost - 100% Hedged
- Staggered Delivery
- 3Q2001 through 4Q2003
- $35 MM Incremental EBITDA on a Trailing 12 Month Rate
- Highland Fortress Contracted for 2 Years
Slide #10
New Build Program - Construction Timeline
Start Delivery
Date Date
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UT 755 L 133 HF 06/00 07/01
UT 745 138 11/00 02/02
UT 745 134 HN 02/01 03/02
UT 755 094 09/01 10/02
UT 722 - L 139 10/01 12/02
UT 755 - L 095 02/02 03/03
UT 755 096 05/02 06/03
UT 722 - L 140 06/02 09/03
UT 722 - L 141 09/02 12/03
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Slide #11
New Build Expenditures
$ in Millions
Year Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4 Total
---- ------ ------ ------ ------ -----
2001 3.8 7.8 11.7 3.0 26.3
2002 34.1 1.5 2.2 36.3 74.1
2003 13.8 12.6 24.2 24.2 74.8
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Total 175.2
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Slide #12
New Build Program - Estimated Annual EBITDA/EPS
Delivery Annualized Annualized EPS
Vessels Date EBITDA(*) Contribution(*)
------------------ ---------- ---------- ---------------
H. Fortress (PSV) 7/12/01 $ 3.4 $ 0.25
H. Navigator (PSV) 1st Q 2002 $ 3.0 $ 0.24
UT 745 (PSV) 1st Q 2002 $ 3.0 $ 0.24
UT 755 (PSV) 3rd Q 2002 $ 2.7 $ 0.21
UT 722L (AHTS) 4th Q 2002 $ 5.8 $ 0.46
UT 755L (PSV) 1st Q 2003 $ 2.7 $ 0.21
UT 755 (PSV) 2nd Q 2004 $ 2.7 $ 0.22
UT 722L (AHTS) 3rd Q 2004 $ 5.8 $ 0.46
UT 722L (AHTS) 4th Q 2004 $ 5.8 $ 0.46
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Total $ 34.9 $ 2.75
*Assumes 95% and 80% Utilization for PSV's & AHTS Respectively and Trailing 12
Mo. Avg. Day Rates (4/01) applied to 2004
Slide #13
Newbuild Vessel
Competitive Advantage
- Timing
- Cost
- Market Presence
- Cash Flows
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Slide #14
Worldwide Vessel Activity by Region
(PSVs > 2,200 dwt & AHTS > 10,000 bhp)
March '01 March '00
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North Sea 50% 58%
Far East 13% 13%
S. America 13% 12%
N. America 10% 9%
Africa 10% 6%
Med. Sea 4% 2%
Total Vessels 267 263
Slide #15
North Sea Dynamics
Current Newbuild Cycle More Attractive than Prior Cycle
Vessel
Period North Sea Non-North Sea Deliveries
--------- --------- ------------- ----------
1996-1999 78% 22% 95
2001-2003 57% 43% 61
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Slide #16
Regional Comparisons
North Southeast West
Sea Asia Brazil Africa
------- --------- ------ ------
Total Vessels
(Owned Vessels) 30 (22) 12 (12) 3 (2) 3 (1)
PSVs 24 1 2 2
Utilization Rate
1H 2000 86% 58% 96% N Sea
1H 2001 96% 85% 94% N Sea
Average Day Rate
1H 2000 $ 8,838 $ 3,866 $7,869 N Sea
1H 2001 $10,069 $ 4,321 $9,425 N Sea
EBITDA Contribution* 80% 15% 5% N Sea
*Approximate amounts.
Slide #17
Consistent Fleet Utilization
North Southeast
Sea Asia
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1995 96.4% 80.5%
1996 95.1% 77.5%
1997 96.5% 75.2%
1998 98.6% 83.5%
1999 88.2% 62.9%
2000 92.8% 67.2%
2001 1H 95.7% 85.2%
Goal 95.0% 85.0%
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Slide #18
Historical Financial Data
1st Half
1996 1997 1998* 1999 2000* 2001**
----- ----- ----- ----- ----- --------
EBITDA $14.0 $22.4 $46.4 $24.9 $30.7 $ 20.6
Net Income $ 3.6 $ 8.2 $18.9 $ 1.9 $ 5.4 $ 7.9
Shares O/S 6.8 7.4 8.3 8.3 8.3 8.4
E.P.S. $0.54 $1.11 $2.29 $0.22 $0.65 $ 0.94
First Call:
3rd Quarter $ 0.77
Total Year $ 2.51
* Excludes gain on sale of vessels.
**Excludes deferred tax recapture.
Slide #19
Operating Leverage
- New Vessel Deliveries
- Increase in Day Rates:
- $100 Per Day in North Sea = $0.09 Per Share*
- $100 Per Day in SEA/Brazil = $0.02 Per Share
- Low Capex/Maintenance Requirements - ($4.0-$5.0 Million/Year)
- Consolidating Markets/Additional Acquisitions
*Exchange rate of GBP=$1.40.
Slide #20
Contract Cover - Last Half 2001
Region* Firm Including Options
--------------- ----- -----------------
North Sea 89.7% 92.0%
Southeast Asia 67.3% 67.3%
Brazil 73.4% 80.8%
All Vessels 81.8% 83.8%
*Excludes sub-charters and pooling arrangements.
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Slide #21
Contract Cover - 2002
Region* Firm Including Options
--------------- ----- -----------------
North Sea 47.0% 80.1%
Southeast Asia 10.2% 17.0%
Brazil 0.0% 6.2%
All Vessels 32.8% 56.2%
*Excludes sub-charters and pooling arrangements.
Slide #22
Financial Policies
- Minimize Currency Exposure
- Elect into Tonnage Tax Regimes
- Hedge New Build Program
- Balance Charter Portfolio
- Minimize Credit Risk
Slide #23
Summary
- Premier World Fleet of Technologically Advanced Vessels
- Minimum Maintenance Capital Expenditures
- Dependable Vessels with High Utilization Rates
- Efficient Multi-use Vessels with Work Roles In/Out of Oil Service
- Premium Day Rates
- Strong Forward Contract Cover
- Powerful Upside Exposure
- Doubling of Income Per Share Within 3 Years
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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.
GulfMark Offshore, Inc.
By: /s/ Edward A. Guthrie
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Edward A. Guthrie
Executive Vice President and
Chief Financial Officer
Date: August 31, 2001
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