Trico Marine Services Reports 2008 First Quarter Results

HOUSTON, TX -- (MARKET WIRE) -- 04/29/08 -- Trico Marine Services, Inc. (NASDAQ: TRMA) (the "Company" or "Trico") today announced its financial results for the quarter ended March 31, 2008 reporting quarterly net income of $10.9 million, or $0.73 earnings per share (diluted), which included a $2.8 million pre-tax gain on sale of non-revenue generating assets, or $0.12 earnings per share (diluted). By comparison, our fourth quarter net income was $30.7 million or $2.08 earnings per share (diluted) including $13.1 million or $0.89 earnings per share (diluted), due to favorable changes in the Norwegian Tonnage Tax regime.

(In thousands, except per share data and day rates)

Three months Three months ended Ended March 31, December 31, 2008 2007 -------------- --------------Charter hire revenues $ 58,138 $ 63,148 Operating income 11,504 18,246 Net income 10,901 30,736 Diluted EPS $ 0.73 $ 2.08

Average Day Rates: Towing & Supply AHTSs $ 39,373 $ 45,930 PSVs 17,959 22,591 OSVs 7,163 7,454

Subsea SPSVs $ 18,709 $ 19,066

Utilization: Towing & Supply AHTSs 87% 92% PSVs 91% 79% OSVs 77% 69%

Subsea SPSVs 94% 92%

President and Chief Executive Officer, Joe Compofelice, commented, "Our first quarter results reflect the Company's continued success in executing our long-term strategy. During the quarter the markets were strong in the North Sea, West Africa and Mexico, with some softness in the Gulf of Mexico which improved after the end of the quarter. We did, however, mobilize three vessels from our domestic fleet to international areas for term contracts. While the cost of mobilizing these vessels impacted our first quarter results, our future earnings will be enhanced by positioning these vessels in high growth markets with term contracts. Eastern Marine Services Limited (EMSL), our joint venture with China Oilfield Services Limited (COSL), was profitable during the quarter, its first quarter of profitability since commencement of operations in July 2006. EMSL's growth and profitability are an important part of our plan to expand into emerging markets, creating value for our shareholders."

Highlights for the Quarter

-- Mobilized two vessels to Southeast Asia and one vessel to West Africa with an adverse effect of $1.7 million to operating income -- EMSL recorded its first quarterly profit -- Secured a new $50 million credit facility

Subsequent Events to the Quarter

-- Awarded long-term contracts with Grupo CFC in Mexico for work with Pemex for two GPA-640 vessels expected to be delivered in the second and third quarters of 2008 -- Secured a $100 million credit facility to fund construction of the previously-announced eight newbuild subsea vessels -- Sold three crewboats, reducing the size of Trico's U.S. Gulf Of Mexico fleet to twelve supply vessels and two crewboats

Summary Results

Charter hire revenues for the quarter ended March 31, 2008 were $58.1 million, a $5.0 million decrease compared to the fourth quarter of 2007. This decrease can be attributed to a combination of a reduction in spot AHTS rates in the North Sea from the record rates in the fourth quarter of 2007, lower utilization for supply vessels in the Gulf of Mexico and the loss of revenues from three vessels being mobilized internationally. Direct operating expenses for the quarter increased $3.6 million compared to the prior quarter due to increased repairs and maintenance expenses and mobilization costs to move vessels internationally.

In April 2008 (through April 25, 2008), AHTS day rates averaged $31,035 with utilization of 76%, PSV day rates averaged $17,734 with utilization of 91%, OSV day rates averaged $7,692 with utilization of 83%, and SPSV day rates averaged $23,235 with utilization of 68%.

Conference Call Information

The Company will conduct a conference call at 8:30 a.m. EDT on Wednesday, April 30, 2008, to discuss the results with analysts, investors and other interested parties. Individuals who wish to participate in the conference call should dial (888) 277-7135, access code 6623904, in the United States or (913) 312-0843, access code 6623904, from outside the country.

A telephonic replay of the conference call will be available until May 14, 2008, starting approximately 1 hour after the completion of the call, and can be accessed by dialing (888) 203-1112 access code 6623904 (international calls should use (719) 457-0820, access code 6623904).

About Trico

Trico provides a broad range of marine support services to the oil and gas industry, operating primarily in international markets, with operations in the North Sea, West Africa, Mexico, Brazil, Southeast Asia and the Gulf of Mexico. Using its larger and more sophisticated vessels, Trico provides support for the construction, installation, repair and maintenance of offshore facilities, the deployment of underwater remotely operated vehicles, or ROVs, sea floor cable laying and trenching services. Trico is headquartered in Houston, Texas.

For more information about Trico Marine Services, Inc. visit us on the web at www.tricomarine.com.

Certain statements in this press release that are not historical fact may be "forward-looking statements." Actual events may differ materially from those projected in any forward-looking statement. There are a number of important factors involving risks and uncertainties beyond the control of the Company that could cause actual events to differ materially from those expressed or implied by such forward-looking statements. A description of risks and uncertainties relating to Trico Marine Services, Inc. and its industry and other factors, which could affect the Company's results of operations or financial condition, are included in the Company's Securities and Exchange Commission filings. Trico undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this report.

TRICO MARINE SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In thousands, except share and per share amounts)

Three months Three months ended ended March 31, December 31, 2008 2007 ----------- -----------Revenues: Charter hire $ 58,138 $ 63,148 Other vessel income 1,037 1,835 ----------- -----------Total revenues 59,175 64,983

Operating expenses: Direct vessel operating expenses 32,994 29,377 General and administrative 10,767 10,701 Depreciation and amortization 6,747 6,582 Impairment on assets held for sale, net of insurance recoveries - 116 (Gain) loss on sale of assets (2,837) (39) ----------- -----------Total operating expenses 47,671 46,737

Operating income 11,504 18,246

Interest income 1,578 3,305 Interest expense, net of amounts capitalized - (329) Foreign exchange gain 1,267 754 Other loss, net (323) (435) ----------- -----------Income before income taxes and noncontrolling interest in (income) loss of consolidated subsidiary 14,026 21,541

Income tax (benefit) expense 2,284 (8,963) ----------- ----------- Income before noncontrolling interest in (income) loss of consolidated subsidiary 11,742 30,504 ----------- ----------- Noncontrolling interest in consolidated subsidiary (841) 232 ----------- ----------- Net income $ 10,901 $ 30,736 =========== ========== Basic income per common share: Net income $ 0.76 $ 2.15 =========== ========== Average common shares outstanding 14,411,162 14,315,001 =========== ========== Diluted income per common share: Net income $ 0.73 $ 2.08 =========== ========== Average common shares outstanding 14,918,827 14,776,887 =========== ========== TRICO MARINE SERVICES, INC. AND SUBSIDIARIES

Three Months Three Months ended ended Month of March 31, December 31, April 2008 2008 2007 ------------ ------------ ------------ Average Day Rates:

Towing and Supply AHTSs (1) $ 31,035 $ 39,373 $ 45,930 PSVs 17,734 17,959 22,591 OSVs 7,692 7,163 7,454 Crew/Line 5,797 5,879 5,880

Subsea SPSVs $ 23,235 $ 18,709 $ 19,066

Utilization:

Towing and Supply AHTSs 76% 87% 92% PSVs 91% 91% 79% OSVs 83% 77% 69% Crew/Line 53% 54% 73%

Subsea SPSVs 68% 94% 92%

Average Number of Vessels:

Towing and Supply AHTSs 6.0 6.0 6.0 PSVs 7.0 7.0 7.0 OSVs 38.0 38.2 39.0 Crew/Line 6.2 7.0 7.0

Subsea SPSVs 5.0 5.0 5.0

(1) Anchor handling, towing and supply vessels.

TRICO MARINE SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands, except share and per share amounts)

(UNAUDITED) ASSETS March 31, December 31, 2008 2007 ----------- -----------Current assets: Cash and cash equivalents $ 143,153 $ 131,463 Restricted cash 1,119 4,747 Accounts receivable, net 53,298 47,253 Prepaid expenses and other current assets 5,539 5,023 Assets held for sale 1,500 3,786 ----------- ----------- Total current assets 204,609 192,272

Property and equipment: Land and buildings 42 117 Marine vessels 301,932 285,656 Construction-in-progress 297,272 255,749 Transportation and other 2,467 3,574 ----------- ----------- 601,713 545,096 Less accumulated depreciation and amortization (80,744) (71,482) ----------- ----------- Net property and equipment 520,969 473,614

Restricted cash - noncurrent 3,844 3,813 Other assets 13,079 12,045 ----------- ----------- Total assets $ 742,501 $ 681,744 =========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term and current maturities of debt $ 5,258 $ 3,258 Accounts payable 12,742 15,480 Accrued expenses 19,475 22,896 Accrued insurance reserve 2,009 2,508 Accrued interest 1,130 2,152 Foreign taxes payable 4,926 4,627 Income taxes payable 1,172 1,347 ----------- ----------- Total current liabilities 46,712 52,268

Long-term debt, including premium 167,273 157,287 Foreign taxes payable 68,966 64,777 Deferred revenues on unfavorable contracts 544 599 Other liabilities 3,938 3,713 ----------- ----------- Total liabilities 287,433 278,644

Noncontrolling interest 12,651 12,878 Commitments and contingencies

Stockholders' equity: Preferred stock, $.01 par value - -Common stock, $.01 par value 155 150 Warrants - Series A 1,640 1,645 Warrants - Series B - 632 Additional paid-in capital 260,370 245,134 Retained earnings 152,756 141,611 Accumulated other comprehensive income, net of tax 45,100 18,654 Treasury stock, at cost (17,604) (17,604) ----------- ----------- Total stockholders' equity 442,417 390,222 ----------- ----------- Total liabilities and stockholders' equity $ 742,501 $ 681,744 =========== ========== TRICO MARINE SERVICES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In thousands)

Three months Three months ended ended March 31, March 31, 2008 2007 ----------- -----------Net income $ 10,901 $ 14,584 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 6,747 5,580 Amortization of non-cash deferred revenues (89) (208) Deferred income taxes 2,103 8,115 Gain on sales of assets (2,837) (2,837) Provision for doubtful accounts - (19) Stock based compensation 600 637 Noncontrolling interest in income (loss) of consolidated subsidiary 841 (1,651) Change in operating assets and liabilities: Accounts receivable (4,360) 5,136 Prepaid expenses and other current assets (390) 989 Accounts payable and accrued expenses (5,116) (2,738) Foreign taxes payable - - Other, net (2,792) (1,280) ----------- -----------Net cash provided by (used in) operating activities 5,608 26,308 ----------- ----------- Cash flows from investing activities: Purchases of property and equipment (31,892) (4,221) Proceeds from sales of assets 5,123 4,533 Purchases of available-for-sale securities - (27,473) Change in restricted cash 3,661 153 ----------- -----------Net cash used in investing activities (23,108) (27,008) ----------- ----------- Cash flows from financing activities: Net proceeds from issuance of common stock - 30 Net proceeds from exercises of warrants and options 11,901 - Proceeds from issuance of debt 12,000 150,000 Debt issuance costs (273) (4,804) ----------- -----------Net cash provided by financing activities 23,628 145,226 ----------- ----------- Effect of exchange rate changes on cash and cash equivalents 5,562 1,301 ----------- ----------- Net increase in cash and cash equivalents 11,690 145,827 Cash and cash equivalents at beginning of period 131,463 114,173 ----------- -----------Cash and cash equivalents at end of period $ 143,153 $ 260,000 =========== ==========

Contact info: Geoff Jones VP & Chief Financial Officer (713) 780-9926

2008-04-29 21:28:50 0348493 MARKETWIRE