GulfMark Offshore Inc. (GLF, Financial) filed Quarterly Report for the period ended 2010-03-31.
Gulfmark Offshore Inc. has a market cap of $885.71 million; its shares were traded at around $34.47 with a P/E ratio of 15.32 and P/S ratio of 2.28. Gulfmark Offshore Inc. had an annual average earning growth of 14.5% over the past 10 years. GuruFocus rated Gulfmark Offshore Inc. the business predictability rank of 3-star.GLF is in the portfolios of Michael Price of MFP Investors LLC, Kenneth Fisher of Fisher Asset Management, LLC.
Our revenues for the quarter ended March 31, 2010, decreased $24.1 million, or 22%, compared to the first quarter of 2009. The decrease in revenue was due mainly to the overall decrease in day rates from $19,151 in the first quarter of 2009 to $15,385 in the current year quarter offset by the effect of the weakening of the U.S. Dollar, the combination of which negatively impacted revenue by $24.5 million. In addition, overall utilization decreased from 88.9% in the first quarter of 2009 to 83.9% in the current year quarter, which decreased revenue by $5.3 million. Capacity related to the effect of vessels added in 2009 and the vessel added in 2010 increased revenue by $5.7 million.
Operating income increased $7.4 million compared with the first quarter of 2009. The 2009 first quarter included a $46.2 million impairment charge resulting from a shipyard defaulting on the construction of three vessels. Operating income excluding the charge would have been $47.8 million for the quarter compared to $8.9 million in the first quarter of 2010. The decrease, excluding the impairment charge, is due primarily to lower revenue but is also affected by increased direct operating, drydock and depreciation expenses. General and administrative expense increased from $10.5 million in the first quarter of 2009 to $11.7 million in the current year quarter, due primarily to higher salaries and benefits and higher professional fees.
Revenues in the North Sea region, compared to the first quarter of 2009 decreased by $8.6 million, or 20%, to $35.3 million in the first quarter of 2010. This decrease was primarily a result of the decrease in day rates from $21,073 in the prior year quarter to $16,771 in the first quarter of 2010 offset by the effect of the weakening of the U.S. Dollar, the combination of which contributed $12.5 million to the decrease in revenue. The region did experience an increase in capacity resulting primarily from the effect of the addition of a vessel in late 2009 and the addition of a vessel in the first quarter of 2010 which increased revenue by $1.7 million. Utilization increased from 84.5% in the first quarter of 2009 to 90.2% in the first quarter of 2010 resulting in increased revenue of $2.2 million. Operating income decreased $13.9 million from the prior year quarter, due primarily to the decrease in revenue and the decrease on the gain on sale of assets. In addition, direct operating expenses increased by $0.7 million due primarily to the addition of the new vessels. Drydock expense also increased by $0.4 million due to higher cost per drydock day. Depreciation expense also increased by $0.7 million resulting primarily from the new additions. General and administrative expense in the first quarter of 2010 was $2.8 million compared to $2.5 million in the prior year quarter.
Revenues for the Southeast Asia based fleet decreased by $1.8 million, or 10%, to $15.8 million in the first quarter of 2010, compared to the same 2009 quarter, primarily resulting from a decrease in day rates from $20,699 in 2009 to $18,039 in the current year quarter, which decreased revenue by $2.9 million. Revenue was positively impacted by $2.9 million due to the increase in capacity resulting from the effect of the two vessels added in 2009. Utilization for the first quarter of 2009 was 87.2% compared to the current quarter of 83.1%, which negatively impacted revenue by $1.8 million. Operating income for the region was $9.0 million in the first quarter of 2010 compared to $14.2 million in the same 2009 quarter. The decrease is due mainly to the decrease in revenue coupled with an increase in drydock expense totaling $1.4 million and the decrease on the gain on sale of assets totaling $1.4 million. General and administrative expense was $0.6 million in the first quarter of 2010 compared to $0.8 million in the first quarter of 2009. The decrease is due mainly to the collection of a previously reserved bad debt receivable.
The Americas region revenues decreased by $13.7 million, or 29%, in the first quarter of 2010, compared to the first quarter of 2009. The decrease in revenue is due primarily to the decreased day rates from $17,302 in the first quarter of 2009 to $13,362 in 2010, which contributed $9.1 million to the decrease in revenue. Utilization also decreased from 92.9% in the first quarter of 2009 to 79.8% in the first quarter of 2010 contributing $5.6 million to the decrease in revenue. The capacity effect of the vessels added in 2009 increased revenue by $1.1 million. Operating income for the first quarter of 2010 was $0.7 million compared to a quarter loss of $26.8 million in the same period of 2009. The 2009 loss included the $46.2 million impairment previously discussed. Excluding the impairment, the 2009 first quarter operating income was $19.4 million and the decrease in operating income is largely attributable to the lower revenues. Direct operating expense was higher by $1.5 million due primarily to higher salaries and benefits and unexpected major repairs. Depreciation expense increased $0.5 million quarter over quarter resulting from the new vessel additions. Drydock expense was higher by $3.0 million as we experienced 94 drydock days in 2010 compared to zero days in 2009. General and administrative expense increased slightly.
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Gulfmark Offshore Inc. has a market cap of $885.71 million; its shares were traded at around $34.47 with a P/E ratio of 15.32 and P/S ratio of 2.28. Gulfmark Offshore Inc. had an annual average earning growth of 14.5% over the past 10 years. GuruFocus rated Gulfmark Offshore Inc. the business predictability rank of 3-star.GLF is in the portfolios of Michael Price of MFP Investors LLC, Kenneth Fisher of Fisher Asset Management, LLC.
Highlight of Business Operations:
For the quarter ended March 31, 2010, we had net income of $21.5 million, or $0.84 per diluted share, on revenues of $84.7 million. In comparison, for the same period in 2009, net income was $14.2 million, or $0.56 per diluted share, on revenues of $108.8 million.Our revenues for the quarter ended March 31, 2010, decreased $24.1 million, or 22%, compared to the first quarter of 2009. The decrease in revenue was due mainly to the overall decrease in day rates from $19,151 in the first quarter of 2009 to $15,385 in the current year quarter offset by the effect of the weakening of the U.S. Dollar, the combination of which negatively impacted revenue by $24.5 million. In addition, overall utilization decreased from 88.9% in the first quarter of 2009 to 83.9% in the current year quarter, which decreased revenue by $5.3 million. Capacity related to the effect of vessels added in 2009 and the vessel added in 2010 increased revenue by $5.7 million.
Operating income increased $7.4 million compared with the first quarter of 2009. The 2009 first quarter included a $46.2 million impairment charge resulting from a shipyard defaulting on the construction of three vessels. Operating income excluding the charge would have been $47.8 million for the quarter compared to $8.9 million in the first quarter of 2010. The decrease, excluding the impairment charge, is due primarily to lower revenue but is also affected by increased direct operating, drydock and depreciation expenses. General and administrative expense increased from $10.5 million in the first quarter of 2009 to $11.7 million in the current year quarter, due primarily to higher salaries and benefits and higher professional fees.
Revenues in the North Sea region, compared to the first quarter of 2009 decreased by $8.6 million, or 20%, to $35.3 million in the first quarter of 2010. This decrease was primarily a result of the decrease in day rates from $21,073 in the prior year quarter to $16,771 in the first quarter of 2010 offset by the effect of the weakening of the U.S. Dollar, the combination of which contributed $12.5 million to the decrease in revenue. The region did experience an increase in capacity resulting primarily from the effect of the addition of a vessel in late 2009 and the addition of a vessel in the first quarter of 2010 which increased revenue by $1.7 million. Utilization increased from 84.5% in the first quarter of 2009 to 90.2% in the first quarter of 2010 resulting in increased revenue of $2.2 million. Operating income decreased $13.9 million from the prior year quarter, due primarily to the decrease in revenue and the decrease on the gain on sale of assets. In addition, direct operating expenses increased by $0.7 million due primarily to the addition of the new vessels. Drydock expense also increased by $0.4 million due to higher cost per drydock day. Depreciation expense also increased by $0.7 million resulting primarily from the new additions. General and administrative expense in the first quarter of 2010 was $2.8 million compared to $2.5 million in the prior year quarter.
Revenues for the Southeast Asia based fleet decreased by $1.8 million, or 10%, to $15.8 million in the first quarter of 2010, compared to the same 2009 quarter, primarily resulting from a decrease in day rates from $20,699 in 2009 to $18,039 in the current year quarter, which decreased revenue by $2.9 million. Revenue was positively impacted by $2.9 million due to the increase in capacity resulting from the effect of the two vessels added in 2009. Utilization for the first quarter of 2009 was 87.2% compared to the current quarter of 83.1%, which negatively impacted revenue by $1.8 million. Operating income for the region was $9.0 million in the first quarter of 2010 compared to $14.2 million in the same 2009 quarter. The decrease is due mainly to the decrease in revenue coupled with an increase in drydock expense totaling $1.4 million and the decrease on the gain on sale of assets totaling $1.4 million. General and administrative expense was $0.6 million in the first quarter of 2010 compared to $0.8 million in the first quarter of 2009. The decrease is due mainly to the collection of a previously reserved bad debt receivable.
The Americas region revenues decreased by $13.7 million, or 29%, in the first quarter of 2010, compared to the first quarter of 2009. The decrease in revenue is due primarily to the decreased day rates from $17,302 in the first quarter of 2009 to $13,362 in 2010, which contributed $9.1 million to the decrease in revenue. Utilization also decreased from 92.9% in the first quarter of 2009 to 79.8% in the first quarter of 2010 contributing $5.6 million to the decrease in revenue. The capacity effect of the vessels added in 2009 increased revenue by $1.1 million. Operating income for the first quarter of 2010 was $0.7 million compared to a quarter loss of $26.8 million in the same period of 2009. The 2009 loss included the $46.2 million impairment previously discussed. Excluding the impairment, the 2009 first quarter operating income was $19.4 million and the decrease in operating income is largely attributable to the lower revenues. Direct operating expense was higher by $1.5 million due primarily to higher salaries and benefits and unexpected major repairs. Depreciation expense increased $0.5 million quarter over quarter resulting from the new vessel additions. Drydock expense was higher by $3.0 million as we experienced 94 drydock days in 2010 compared to zero days in 2009. General and administrative expense increased slightly.
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