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GLOBAL INDUSTRIES LTD
Symbol U : GLBL
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Global Industries, Ltd. Announces Results for the Third Quarter of 2011

2011-11-03 21:00 ET - News Release

HOUSTON,Nov. 3, 2011 /PRNewswire/ -- Global Industries, Ltd. (NASDAQ: GLBL) today announced revenues of $67.1 million for the third quarter of 2011 compared to $189.5 million for the third quarter of 2010.  Net income was $4.5 million, or $0.04 per diluted share, for the third quarter of 2011 compared to net loss of $27.9 million, or $0.24 per diluted share, for the third quarter of 2010.

For the nine months ended September 30, 2011, the Company reported revenue, net loss and loss per diluted share of $270.1 million, $56.6 million and $0.50, respectively, as compared to revenue, net loss and loss per diluted share of $418.1 million, $47.8 million and $0.42, respectively, for the nine months ended September 30, 2010.

During the third quarter of 2011, the Company sold its entire interest in its two Malaysian operating entities to Puncak Oil and Gas Sdn. Bhd. for a combined consideration of $59.0 million resulting in an after tax gain of $47.8 million, or $0.42 per diluted share.

Project awards for the third quarter of 2011 were $127.8 million resulting in a backlog at September 30, 2011 of $228.2 million.

On September 11, 2011, the Company, Technip S.A. ("Technip"), and Apollon Merger Sub B, Inc., a wholly-owned subsidiary of Technip, ("Apollon") entered into an Agreement and Plan of Merger (the "Merger Agreement"), pursuant to which Apollon will merge with and into the Company (the "Merger") with Global surviving the Merger as a wholly-owned subsidiary of Technip.  Upon consummation of the Merger, the shares of Global Industries, Ltd. will no longer be traded.  As a result of the pending merger with Technip, the Company will not hold a quarterly conference call.

Global Industries, Ltd. is a leading offshore solutions provider of offshore construction, engineering, project management, and support services including pipeline construction, platform installation and removal, deepwater/SURF installations, IRM, and diving to the oil and gas industry worldwide.  The Company's shares are traded on The NASDAQ Global Select Market under the symbol "GLBL."

This press release may contain forward-looking information based on current information and expectations of the Company that involve a number of risks, uncertainties, and assumptions.  Among the factors that could cause the actual results to differ materially are: industry conditions, prices of crude oil and natural gas, the Company's ability to obtain and the timing of new projects, changes in competitive factors, and other factors described in the Company's most recent annual and quarterly reports, including our Annual Report on Form 10-K.  Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual outcomes could vary materially from those indicated.

Set forth are our Company's results of operations for the periods indicated.


RESULTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)














Three Months Ended


Nine Months Ended


September 30


September 30



2011



2010



2011



2010













Revenues                                        

$

67,148


$

189,501


$

270,069


$

418,080

Cost of operations                                 


89,926



179,707



320,962



405,352

Gross profit (loss)                          


(22,778)



9,794



(50,893)



12,728

Goodwill impairment                                


--



37,388



--



37,388

Loss (gain) on asset disposals and impairments          


(28)



(23,271)



(7,053)



(12,483)

Relocation costs                                   


--



838



--



838

Selling, general and administrative expenses             


18,544



16,633



52,377



51,572

Equity in (earnings) of unconsolidated affiliate           


(3,158)



--



(3,158)



--

Operating income (loss)                     


(38,136)



(21,794)



(93,059)



(64,587)

Interest income                                    


44



516



1,253



1,249

Interest expense                                   


(1,989)



(2,649)



(6,972)



(7,308)

Gain on sale of investment in subsidiaries               


47,848



--



47,848



--

Other income (expense), net                         


(1,804)



1,275



(775)



269

Income (loss) before taxes                   


5,963



(22,652)



(51,705)



(70,377)

Income tax expense (benefits)                        


1,491



5,067



4,227



(22,706)

Net income (loss)                           


4,472



(27,719)



(55,932)



(47,671)

Less: Net income attributable to noncontrolling interest     


--



139



714



139

Net income (loss) attributable to Global Industries, Ltd.

$

4,472


$

(27,858)


$

(56,646)


$

(47,810)













Earnings (Loss) Per Common Share












 Basic                                         

$

0.04


$

(0.24)


$

(0.50)


$

(0.42)

 Diluted                                         

$

0.04


$

(0.24)


$

(0.50)


$

(0.42)













Weighted Average Common Shares Outstanding










 Basic                                         


114,334



113,959



114,267



113,721

 Diluted                                         


114,363



113,959



114,267



113,721













Other Data












    Depreciation and Amortization                       

$

10,533


$

14,173


$

33,417



42,127

    Backlog at end of period                           

$

228,194


$

274,538


$

228,194


$

274,538




























In 2010, we began transitioning the operations of our company from a regional structure to a more centralized structure that focuses on global opportunities for our vessels.  As a result, effective January 1, 2011, we have restructured our reporting segments from geographic regions to two new project segments:  Construction and Installation and Other Offshore Services.  This change has been reflected as a retrospective change to the financial information for the three months and nine months ended September 30, 2010 presented below.  This change did not affect our consolidated results of operations or tax reporting.

Set forth are our Company's results of operations by reportable segment for the periods indicated.

RESULTS OF OPERATIONS BY REPORTABLE SEGMENT

(In thousands)

(Unaudited)







Three Months Ended


Nine Months Ended


September 30


September 30


2011


2010


2011


2010


(In thousands)

Total segment revenues


Construction and Installation           

$

37,301


$

144,390


$

198,442


$

297,455

Other Offshore Services              


29,847



45,111



71,627



120,625

Consolidated revenues               

$

67,148


$

189,501


$

270,069


$

418,080













Income (loss) before taxes












Construction and Installation           

$

13,808


$

(38,185)


$

(18,198)


$

(61,343)

Other Offshore Services              


1,734



21,848



(10,922)



13,581

Corporate                          


(9,579)



(6,315)



(22,585)



(22,615)













Consolidated income (loss) before taxes

$

5,963


$

(22,652)


$

(51,705)


$

(70,377)



CONSOLIDATED BALANCE SHEETS
(In thousands)







September 30


December 31


2011


2010


(unaudited)



ASSETS






Current Assets







Cash and cash equivalents                                              

$

168,472


$

349,609


Restricted cash                                                       


16,488



4,297


Marketable securities                                                   


29,830



--


Accounts receivable – net of allowance of $1,247 for 2011







and $2,767 for 2010                                                 


40,696



40,693


Unbilled work on uncompleted contracts                                   


44,452



56,152


Contract costs incurred not yet recognized                                 


20,072



15,052


Deferred income taxes                                                 


3,565



4,610


Assets held for sale                                                   


1,510



16,719


Prepaid expenses and other                                             


41,730



34,099


Total current assets                                               


366,815



521,231

Property and Equipment, net                                             


825,537



784,719

Other Assets







Marketable securities – long-term                                         


1,535



--


Accounts receivable – long-term                                         


8,687



8,679


Deferred charges, net                                                  


21,248



20,429


Other                                                               


17,704



8,683


Total other assets                                                


49,174



37,791


Total                                                       

$

1,241,526


$

1,343,741













LIABILITIES AND EQUITY






Current Liabilities







Current maturities of long term debt                                       

$

3,960


$

3,960


Accounts payable                                                     


75,568



109,394


Employee-related liabilities                                               


15,882



17,935


Income taxes payable                                                   


20,220



26,618


Accrued anticipated contract loss                                         


4,315



5,782


Other accrued liabilities                                                 


17,911



31,721


Total current liabilities                                             


137,856



195,410







Long-Term Debt                                                         


302,651



299,405

Deferred Income Taxes                                                  


54,660



49,995

Other Liabilities                                                         


19,943



18,242







Commitments and Contingencies                                         


--



--







Equity







Common stock, $0.01 par value, 250,000 shares authorized, and 115,759 and 115,504 shares issued at September 30, 2011 and  December 31, 2010, respectively


1,158



1,155


Additional paid-in capital                                                 


417,322



414,895


Retained earnings                                                     


316,122



372,768


Accumulated other comprehensive loss                                    


(8,186)



(8,770)


Shareholders' equity—Global Industries, Ltd.                           


726,416



780,048


Noncontrolling interest                                                  


--



641


Total equity                                                     


726,416



780,689


Total                                                       

$

1,241,526


$

1,343,741










SOURCE Global Industries, Ltd.

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