Halter Marine Announces 1Q Results

Halter Marine Group, Inc. announced the company's net income for the first quarter ended June 30, 1999 was $1.9 million on revenue of $192.1 million. This compares to net income of $6.1 million on revenue of $209.8 million in first quarter of fiscal 1999. The company's fiscal year ends March 31. "The company's first-quarter earnings represent continued improvement in Halter's operating results compared to our two most recent quarters," said John Dane III, chairman, president and CEO. "Gross margins in the company's vessels segment exceeded those of both the prior quarter and the year-ago quarter as the impact of our Project ABC business process improvement program continues to be realized. The Rigs segment experienced an increase in gross margin from the prior quarter but continues to be adversely impacted by the fact the company is not recognizing any gross profit on the two new semisubmersible rigs being constructed for Petrodrill Offshore. During the quarter the company recognized revenue and cost of revenue of $18.7 million related to these contracts. Finally, our Engineered Products group continues to provide a strong gross profit contribution." Gross profit margins for the company's Vessels, Rigs and Engineered Products segments were 9.3 percent, 10.5 percent, and 15.9 percent, respectively, for the first quarter. The company's backlog at June 30, 1999 decreased from $656 million at March 31, 1999 to $535.4 million and was related to the following business segments: Vessels, $238.4 million or 44 percent; Rigs, $239.9 million or 45 percent; and Engineered Products, $57.1 million or 11 percent.