Trico Marine Services reports third quarter resultsNews // November 12, 2004
This compares to a net loss of US$9.5 million, or US$(0.26) per share (diluted), on revenues of US$31.6 million for the third quarter of 2003.
Trico's net loss for the first nine months of 2004 was US$77.3 million, or US$(2.10) per share (diluted), on revenues of US$78.8 million. This compares to a net loss of US$65.0 million, or US$(1.79) per share (diluted), on revenues of US$95.1 million forthe first nine months of 2003.
During the quarter, the company announced that a consensual agreement had been reached with holders of more than 67 per cent of the Senior Notes. Based on this agreement, the company believes it has the support of the requisite body of the holders of theSenior Notes to implement the restructuring through a prepackaged or prearranged bankruptcy case. The parties to the restructuring agreement have signed binding agreements to support the restructuring on proposed terms, subject to finalization of definitive agreements and related documentation and the satisfaction of certain specified conditions.
The proposed plan of restructuring would convert the Senior Notes into 100 per cent of the new equity of the Company, subject to dilution by warrants issued to existing common stockholders and options to employees. The financial restructuring would be effected through a prepackaged or prearranged Chapter 11 plan of reorganization of Trico Marine Services Inc (the parent) and its two primary US subsidiaries, Trico Marine Assets and Trico Marine Operators.
The company does not anticipate, nor does the agreement contemplate, that any of its foreign subsidiaries, affiliates or assets would be subject to any Chapter 11 bankruptcy proceeding or any other similar reorganization or insolvency proceeding. The company does not anticipate any of its other debts being impaired as a result of the restructuring.
Due primarily to the company's continuing operating losses, its consolidated unrestricted cash position decreased by approximately US$2.3 million to US$20.3 million during the third quarter of 2004. The decrease is primarily due to the company's US operations, which continued to utilize cash to fund working capital needs. As a result, the company's unrestricted cash position available to fund US operations declined by approximately US$1.9 million to US$17.7 million during the third quarter of 2004.
Included in the third quarter 2004 loss are restructuring charges of US$2.6 million, primarily comprised of fees paid to financial and legal advisors. Included in the 2004 year-to-date loss are total restructuring charges of US$4.3 million. Also includedin the nine-month loss for 2004 are impairment charges of US$8.6 million on assets held for use, a loss of US$8.7 million on assets held for sale and charges for accelerated amortization of deferred financing costs of US$7.2 million and original issue discounts of $2.8 million.
The company remains in default on its Senior Notes indenture and, by way of cross-default, its US$55 million secured term loan facility.