GulfMark Offshore Inc. (GLF)
Q4 2012 Earnings Call
February 26, 2013 9:00 am ET
David Butters – Chairman
Bruce Streeter – President, Chief Executive Officer
Quintin Kneen – Chief Financial Officer
David Rosenwasser – Chief Operating Officer
Todd Scholl – Clarkson Capital Markets
Jeff Spittel – Global Hunter Securities
Greg Lewis – Credit Suisse
Jeff Tillery – Tudor, Pickering
Bill Dezellem – Titan Capital Management
Joe Gibney – Capital One
Matt Beeby – Williams Financial
Cole Sullivan – ISI Group
Mark Brown – Citigroup
Previous Statements by GLF
» GulfMark Offshore CEO Discusses Q3 2010 Results - Earnings Call Transcript
» GulfMark Offshore, Inc. Q2 2010 Earnings Call Transcript
» GulfMark Offshore, Inc. Q1 2010 Earnings Call Transcript
» GulfMark Offshore, Inc. F4Q08 (Qtr End 12/31/08) Earnings Call Transcript
This conference call will include comments which are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors. These risks are more fully disclosed in the Company’s filings with the SEC. The forward-looking comments on this conference call should not therefore be regarded as representations that the projected outcomes can or will be achieved. Thank you.
I would now like to turn the call over to Mr. David Butters. Please go ahead.
Thank you, Emily, and good morning everyone and welcome to GulfMark’s fourth quarter and year-end conference call. Today we’ll follow our normal format with management covering the financial and operational highlights; but before we go into that, I would like to comment on an announcement that we made about two weeks ago regarding the retirement of our Chief Executive Officer, Bruce Streeter, and that will be effective as of June—this June annual meeting.
It was almost 23 years ago when Bruce took charge of a small seven vessel fleet company consisting of a few platform supply vessels acquired by GulfMark from Offshore Logistics at a total purchase price of around $19 million. During the ensuing years, Bruce built a company through astute purchases of existing tonnage and the design and construction of modern vessels. The company’s footprint during that period grew from a few vessels in the North Sea to a global enterprise consisting today of almost 100 vessels owned and operated throughout the world.
Within the industry, I think Bruce is known as one of the most knowledgeable operators in the business and as a man with a high degree of respect and intelligence. I know what he has achieved, having seen the intrinsic value of our company grow almost 50 times since he took charge of the company back 23 years ago. Shareholders have indeed benefited during this stewardship of Bruce.
We will miss Bruce but he will and we will move on; and I think it’s a real tribute to Bruce that the Board of Directors chose an individual within the company to continue his legacy, and at this point I’d like to congratulate Quintin Kneen on his upcoming appointment and wish him the best of luck.
So with that, I would like to call on Quintin to summarize the fourth quarter results, and then Bruce will cover the operational highlights of the last quarter. Quintin?
Thank you, David. As we normally do, we will have about 30 minutes of prepared remarks from me, Bruce Streeter and David Rosenwasser, and then we will open it up for questions. As always, we will try to provide additional clarity on the fourth quarter results and then throughout the call we will provide our expectations for 2013.
As we indicated in our press release, results for the fourth quarter were characterized by the typical Q4-Q1 seasonality in combination with some unanticipated special items. Revenue for the quarter of 95 million came in on the low end of our quarterly guidance range. On a sequential quarterly basis, consolidated quarterly revenue was down 7% from the third quarter, and on a year-over-year basis consolidated quarterly revenue was down 5% over the fourth quarter of 2011. On a full-year basis, consolidated annual revenue was 389 million, up 2% from 2011 and just outside the low end of the revised annual guidance range.
Quarterly revenue in the North Sea region for the fourth quarter was 39.5 million, down approximately 5% or 2.3 million from the third quarter. The decrease was not unexpected and it reflects the typical seasonality we see in Q4-Q1. Revenue for the fourth quarter in southeast Asia was 13.6 million, down 4 million or 23% from the third quarter. As we mentioned on the third quarter call, we made some strategic management changes in southeast Asia to better capitalize on the market opportunities we see in this region. As a result, revenue for the fourth quarter of 2012 was, and in the first quarter of 2013 is going to be lower than what would be expected based on the current market conditions.
The Americas region generated revenue of 41.9 million during the fourth quarter, essentially flat from the prior quarter. Both utilization and average date rate were up on a sequential quarterly basis, reflecting the transfer of a vessel to southeast Asia which was unemployed during the third quarter. Aside from the vessel sales and vessel moves, revenue, utilization, and average day rate were essentially flat throughout each of the sub-regions of the Americas.