10111
Richmond Avenue, Suite 340, Houston, Texas
|
77042
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
YES x
|
NO o
|
Large
accelerated filer o
|
Accelerated
filer x
|
Non-accelerated
filer o
|
YES o
|
NO x
|
Page
Number
|
|||
3
|
|||
3
|
|||
4
|
|||
5
|
|||
6
|
|||
7
|
|||
12
|
|||
18
|
|||
19
|
|||
|
|||
20
|
|||
20
|
|||
21
|
March
31,
2007
|
December
31,
2006
|
||||||
(In
thousands)
|
|||||||
ASSETS
|
|||||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
95,984
|
$
|
82,759
|
|||
Trade
accounts receivable, net allowance for doubtful accounts of $74 in
2007
and $436 in
2006
|
55,491
|
54,235
|
|||||
Other
accounts receivable
|
3,883
|
3,376
|
|||||
Prepaid
expenses and other current assets
|
5,461
|
2,742
|
|||||
Total
current assets
|
160,819
|
143,112
|
|||||
Vessels
and equipment at cost, net of accumulated depreciation of $192,421
in 2007
and $192,065 in 2006
|
522,747
|
524,676
|
|||||
Construction
in progress
|
63,536
|
47,313
|
|||||
Goodwill
|
30,604
|
29,883
|
|||||
Fair
value hedge
|
—
|
501
|
|||||
Deferred
costs and other assets
|
5,581
|
5,344
|
|||||
Total
assets
|
$
|
783,287
|
$
|
750,829
|
|||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||
Current
liabilities:
|
|||||||
Current
portion of long-term debt
|
$
|
813
|
$
|
794
|
|||
Accounts
payable
|
20,148
|
16,516
|
|||||
Income
taxes payable
|
2,704
|
3,806
|
|||||
Accrued
personnel costs
|
9,235
|
9,527
|
|||||
Accrued
interest expense
|
2,756
|
5,711
|
|||||
Other
income tax liabilities
|
7,168
|
—
|
|||||
Other
accrued liabilities
|
2,391
|
1,810
|
|||||
Total
current liabilities
|
45,215
|
38,164
|
|||||
Long-term
debt
|
159,507
|
159,490
|
|||||
Deferred
tax liabilities
|
3,544
|
7,277
|
|||||
Other
income tax liabilities
|
3,069
|
—
|
|||||
Fair
value hedge
|
—
|
501
|
|||||
Other
liabilities
|
4,331
|
3,969
|
|||||
Stockholders’
equity:
|
|||||||
Preferred
stock, no par value; 2,000 authorized; no shares issued
|
—
|
—
|
|||||
Common
stock, $0.01 par value; 30,000 shares authorized; 22,783 and 22,680
shares
issues and outstanding, respectively
|
225
|
225
|
|||||
Additional
paid-in capital
|
206,022
|
204,986
|
|||||
Retained
earnings
|
262,224
|
242,733
|
|||||
Accumulated
other comprehensive income
|
99,150
|
93,484
|
|||||
Treasury
stock, at cost
|
(3,451
|
)
|
(3,012
|
)
|
|||
Deferred
compensation expense
|
3,451
|
3,012
|
|||||
Total
stockholders’ equity
|
567,621
|
541,428
|
|||||
Total
liabilities and stockholders’ equity
|
$
|
783,287
|
$
|
750,829
|
Three
Months Ended
March
31,
|
|||||||
2007
|
2006
|
||||||
(In
thousands except per share amounts)
|
|||||||
Revenues
|
$
|
65,513
|
$
|
47,675
|
|||
Costs
and expenses:
|
|||||||
Direct
operating expenses
|
24,914
|
21,784
|
|||||
Drydock
expense
|
4,459
|
2,756
|
|||||
General
and administrative expenses
|
6,633
|
5,901
|
|||||
Depreciation
|
7,107
|
7,061
|
|||||
Gain
on sale of assets
|
(5,013
|
)
|
(41
|
)
|
|||
Total
costs and expenses
|
38,100
|
37,461
|
|||||
Operating
income
|
27,413
|
10,214
|
|||||
Other
income (expense):
|
|||||||
Interest
expense
|
(2,612
|
)
|
(4,298
|
)
|
|||
Interest
income
|
1,026
|
165
|
|||||
Foreign
currency gain (loss) and other
|
(102
|
)
|
470
|
||||
Total
other expense
|
(1,688
|
)
|
(3,663
|
)
|
|||
Income
before income taxes
|
25,725
|
6,551
|
|||||
Income
tax provision
|
(1,372
|
)
|
(288
|
)
|
|||
Net
income
|
$
|
24,353
|
$
|
6,263
|
|||
Earnings
per share:
|
|||||||
Basic
|
$
|
1.09
|
$
|
0.31
|
|||
Diluted
|
$
|
1.06
|
$
|
0.30
|
|||
Weighted
average shares outstanding:
|
|||||||
Basic
|
22,310
|
20,143
|
|||||
Diluted
|
22,954
|
20,793
|
Common
Stock at 0.01 ParValue
|
AdditionalPaid-InCapital
|
Retained
Earnings
|
Accumulated
Other Comprehen-sive Income
|
Treasury
Stock
|
Deferred
Compen-sation Expense
|
Total
Stockholders’
Equity
|
|||||||||||||||||||
Shares
|
Share
Value
|
||||||||||||||||||||||||
(In
thousands)
|
|||||||||||||||||||||||||
Balance
at December 31, 2006
|
$
|
225
|
$
|
204,986
|
$
|
242,733
|
$
|
93,484
|
(150
|
)
|
$
|
(3,012
|
)
|
$
|
3,012
|
$
|
541,428
|
||||||||
Net
income
|
—
|
—
|
24,353
|
—
|
—
|
—
|
—
|
24,353
|
|||||||||||||||||
Issuance
of common stock
|
—
|
942
|
—
|
—
|
—
|
—
|
—
|
942
|
|||||||||||||||||
Exercise
of stock options
|
—
|
94
|
—
|
—
|
—
|
—
|
—
|
94
|
|||||||||||||||||
Deferred
compensation plan
|
—
|
—
|
—
|
—
|
(12
|
)
|
(439
|
)
|
439
|
—
|
|||||||||||||||
Cumulative
impact of change in accounting for uncertainties in income taxes
(FIN
48-see Note 4)
|
—
|
—
|
(4,862
|
)
|
—
|
—
|
—
|
—
|
(4,862
|
)
|
|||||||||||||||
Translation
adjustment
|
—
|
—
|
—
|
5,666
|
—
|
—
|
—
|
5,666
|
|||||||||||||||||
Balance
at March 31, 2007
|
$
|
225
|
$
|
206,022
|
$
|
262,224
|
$
|
99,150
|
(162
|
)
|
$
|
(3,451
|
)
|
$
|
3,451
|
$
|
567,621
|
Three
Months Ended
March
31,
|
|||||||
2007
|
2006
|
||||||
(In
thousands)
|
|||||||
Cash
flows from operating activities:
|
|||||||
Net
income
|
$
|
24,353
|
$
|
6,263
|
|||
Adjustments
to reconcile net income from operations to net cash provided by
operations:
|
|||||||
Depreciation
|
7,107
|
7,061
|
|||||
Gain
on sale of assets
|
(5,013
|
)
|
(41
|
)
|
|||
Amortization
of stock based compensation
|
802
|
388
|
|||||
Amortization
of deferred financing costs on debt
|
176
|
321
|
|||||
Adjustment
for doubtful accounts receivable, net of write-offs
|
(362
|
)
|
1
|
||||
Deferred
income tax benefit
|
(487
|
)
|
(136
|
)
|
|||
Foreign
currency transaction (gain) loss
|
378
|
(120
|
)
|
||||
Change
in operating assets and liabilities:
|
|||||||
Accounts
receivable
|
(937
|
)
|
2,147
|
||||
Prepaids
and other
|
(2,724
|
)
|
(1,328
|
)
|
|||
Accounts
payable
|
3,368
|
(1,155
|
)
|
||||
Accrued
liabilities and other
|
(1,795
|
)
|
(4,013
|
)
|
|||
Net
cash provided by operating activities
|
24,866
|
9,388
|
|||||
Cash
flows from investing activities:
|
|||||||
Purchases
of vessels and equipment
|
(17,598
|
)
|
(1,118
|
)
|
|||
Proceeds
from disposition of vessels and equipment
|
5,650
|
263
|
|||||
Net
cash used in investing activities
|
(11,948
|
)
|
(855
|
)
|
|||
Cash
flows from financing activities:
|
|||||||
Repayments
of debt
|
—
|
(476
|
)
|
||||
Proceeds
from exercise of stock options
|
94
|
396
|
|||||
Proceeds
from issuance of stock
|
115
|
135
|
|||||
Net
cash provided by financing activities
|
209
|
55
|
|||||
Effect
of exchange rate changes on cash
|
98
|
694
|
|||||
Net
increase in cash and cash equivalents
|
13,225
|
9,282
|
|||||
Cash
and cash equivalents at beginning of the period
|
82,759
|
24,190
|
|||||
Cash
and cash equivalents at end of period
|
$
|
95,984
|
$
|
33,472
|
|||
Supplemental
cash flow information:
|
|||||||
Interest
paid, net of interest capitalized
|
$
|
5,385
|
$
|
6,777
|
|||
Income
taxes paid (refunded), net
|
$
|
(328
|
)
|
$
|
536
|
Three
Months Ended
March
31, 2007
|
Three
Months Ended
March
31, 2006
|
||||||||||||||||||
Income
|
Shares
|
Per
Share
Amount
|
Income
|
Shares
|
Per
Share
Amount
|
||||||||||||||
Net
income per share, basic
|
$
|
24,353
|
22,310
|
$
|
1.09
|
$
|
6,263
|
20,143
|
$
|
0.31
|
|||||||||
Dilutive
effect of common stock options
|
644
|
650
|
|||||||||||||||||
$
|
24,353
|
22,954
|
$
|
1.06
|
$
|
6,263
|
20,793
|
$
|
0.30
|
Three
Months Ended
March
31,
|
|||||||
2007
|
2006
|
||||||
Net
income
|
$
|
24,353
|
$
|
6,263
|
|||
Comprehensive
income:
|
|||||||
Foreign
currency income
|
5,666
|
9,599
|
|||||
Total
comprehensive income
|
$
|
30,019
|
$
|
15,862
|
Three
Months Ended March 31,
|
|||||||
2007
|
2006
|
||||||
Service
cost
|
$
|
104
|
$
|
70
|
|||
Interest
cost
|
69
|
48
|
|||||
Return
on plan assets
|
(53
|
)
|
(39
|
)
|
|||
Administrative
fee
|
9
|
8
|
|||||
National
Insurance (social security) contribution
|
28
|
25
|
|||||
Recognized
net actuarial loss
|
—
|
355
|
|||||
Net
periodic benefit cost
|
$
|
157
|
$
|
467
|
North
Sea
|
Southeast
Asia
|
Americas
|
Other
|
Total
|
||||||||||||
(In
thousands)
|
||||||||||||||||
Quarter
Ended March 31, 2007
|
||||||||||||||||
Revenues
|
$
|
51,668
|
$
|
8,704
|
$
|
5,141
|
$
|
—
|
$
|
65,513
|
||||||
Direct
operating expenses
|
22,419
|
1,592
|
3,713
|
3,823
|
31,547
|
|||||||||||
Drydock
expense
|
4,134
|
246
|
79
|
—
|
4,459
|
|||||||||||
Depreciation
expense
|
5,733
|
515
|
829
|
30
|
7,107
|
|||||||||||
Gain
on sale of assets
|
(5,013
|
)
|
—
|
—
|
—
|
(5,013
|
)
|
|||||||||
Operating
income (loss)
|
$
|
24,395
|
$
|
6,351
|
$
|
520
|
$
|
(3,853
|
)
|
$
|
27,413
|
|||||
Quarter
Ended March 31, 2006
|
||||||||||||||||
Revenues
|
$
|
35,822
|
$
|
4,977
|
$
|
6,876
|
$
|
—
|
$
|
47,675
|
||||||
Direct
operating expenses
|
18,786
|
1,964
|
3,659
|
3,276
|
27,685
|
|||||||||||
Drydock
expense
|
1,743
|
996
|
17
|
—
|
2,756
|
|||||||||||
Depreciation
expense
|
5,174
|
700
|
1,093
|
94
|
7,061
|
|||||||||||
Gain
on sale of assets
|
(41
|
)
|
—
|
—
|
—
|
(41
|
)
|
|||||||||
Operating
income (loss)
|
$
|
10,160
|
$
|
1,317
|
$
|
2,107
|
$
|
(3,370
|
)
|
$
|
10,214
|
Three
Months Ended
March
31,
|
|||||||
2007
|
2006
|
||||||
Revenues
by Region (000’s) (a):
|
|||||||
North
Sea Based Fleet (c)
|
$
|
51,668
|
$
|
35,822
|
|||
Southeast
Asia Based Fleet
|
8,704
|
4,977
|
|||||
Americas
Based Fleet
|
5,141
|
6,876
|
|||||
Rates
Per Day Worked (a) (b):
|
|||||||
North
Sea Based Fleet (c)
|
$
|
21,120
|
$
|
14,665
|
|||
Southeast
Asia Based Fleet
|
8,636
|
6,142
|
|||||
Americas
Based Fleet
|
10,827
|
11,233
|
|||||
Overall
Utilization (a) (b):
|
|||||||
North
Sea Based Fleet
|
90.4
|
%
|
92.0
|
%
|
|||
Southeast
Asia Based Fleet
|
95.4
|
%
|
83.7
|
%
|
|||
Americas
Based Fleet
|
90.0
|
%
|
99.7
|
%
|
|||
Average
Owned/Chartered Vessels (a) (d):
|
|||||||
North
Sea Based Fleet (c)
|
29.1
|
30.0
|
|||||
Southeast
Asia Based Fleet
|
12.0
|
11.0
|
|||||
Americas
Based Fleet
|
6.0
|
7.0
|
|||||
Total
|
47.1
|
48.0
|
Three
Months Ended
March
31,
|
|||||||
2007
|
2006
|
||||||
1
US$ =
|
|||||||
GBP
|
0.512
|
0.570
|
|||||
NOK
|
6.227
|
6.671
|
|||||
Euro
|
0.763
|
0.831
|
Three
Months Ended
March
31,
|
|||||||
2007
|
2006
|
||||||
1
US$ =
|
|||||||
GBP
|
0.512
|
0.570
|
|||||
NOK
|
6.227
|
6.671
|
|||||
Euro
|
0.763
|
0.831
|
· |
The
cost of using hedging instruments in relation to the risks of currency
fluctuations,
|
· |
The
propensity for adjustments in GBP denominated vessel day rates over
time
to compensate for changes in the purchasing power of GBP as measured
in
U.S. Dollars,
|
· |
The
level of U.S. Dollar denominated borrowings available to us,
and
|
· |
The
conditions in our U.S. Dollar generating regional
markets.
|
· |
operational
risk,
|
· |
catastrophic
or adverse sea or weather
conditions,
|
· |
dependence
on the oil and gas industry,
|
· |
prevailing
oil and natural gas prices,
|
· |
expectations
about future prices,
|
· |
delay
or cost over runs on construction
projects,
|
· |
ongoing
capital expenditure requirements,
|
· |
uncertainties
surrounding environmental and government
regulation,
|
· |
risk
relating to leverage,
|
· |
risks
of foreign operations,
|
· |
risk
of war, sabotage or terrorism,
|
· |
assumptions
concerning competition,
|
· |
risks
of currency fluctuations, and
|
· |
other
matters.
|
GulfMark
Offshore, Inc.
|
|||
(Registrant)
|
|||
By:
|
/s/
Edward A. Guthrie
|
||
Edward
A. Guthrie
|
|||
Executive
Vice President and
|
|||
Chief
Financial Officer
|
|||
Date:
May 1, 2007
|
Exhibit
No.
|
Document
Description
|
|
|
3.1
|
Certificate
of Incorporation, dated December 4, 1996
|
|
Incorporated
by reference to Exhibit 3.1 to our quarterly report on Form 10-Q
for the quarter ended September 30, 2002
|
3.2
|
Certificate
of Amendment of Certificate of Incorporation, dated March 6,
1997
|
|
Incorporated
by reference to Exhibit 3.2 to our quarterly report on Form 10-Q
for the quarter ended September 30, 2002
|
3.3
|
Certificate
of Amendment of Certificate of Incorporation, dated May 24,
2002
|
|
Incorporated
by reference to Exhibit 3.3 to our quarterly report on Form 10-Q
for the quarter ended September 30, 2002
|
3.4
|
Bylaws,
dated December 5, 1996
|
|
Incorporated
by reference to Exhibit 3.3 to our Registration Statement on
Form S-4, Registration No. 333-24141 filed on March 28,
1997
|
4.1
|
See
Exhibit Nos. 3.1, 3.2 and 3.3 for provisions of the Certificate of
Incorporation and Exhibit 3.4 for provisions of the Bylaws defining
the rights of the holders of Common Stock
|
|
Incorporated
by reference to Exhibits 3.1, 3.2 and 3.3 to our quarterly report
on Form
10-Q for the quarter ended September 30, 2002 and Exhibit 3.3 to our
Registration Statement on Form S-4, Registration No. 333-24141 filed
on March 28, 1997
|
4.2
|
Specimen
Certificate for GulfMark Offshore, Inc. Common Stock, $0.01 par
value
|
|
Incorporated
by reference to Exhibit 4.2 to our Registration Statement on
Form S-1, Registration No. 333-31139 filed on July 11,
1997
|
4.3
|
Indenture,
dated July 21, 2004, among GulfMark Offshore, Inc., as Issuer, and
U.S. Bank National Association, as Trustee, including a form of the
Company's 7.75% Senior Notes due 2014
|
|
Incorporated
by reference to Exhibit 4.4 to our quarterly report on Form 10-Q
for the quarter ended September 30, 2004
|
4.4
|
Registration
Rights Agreement, dated July 21, 2004, among GulfMark Offshore, Inc.
and the initial purchasers
|
|
Incorporated
by reference to Exhibit 4.5 to our quarterly report on Form 10-Q
for the quarter ended September 30, 2004
|
31.1
|
Section
302 certification for B.A. Streeter
|
|
Filed
herewith
|
31.2
|
Section
302 certification for E.A. Guthrie
|
|
Filed
herewith
|
32.1
|
Section
906 certification furnished for B.A. Streeter
|
|
Filed
herewith
|
32.2
|
Section
906 certification furnished for E.A. Guthrie
|
|
Filed
herewith
|