Shares of Superior Offshore International Inc., which provides subsea construction and commercial diving services to the offshore oil and gas industry, plunged Friday after the company delayed filing its third-quarter financial statement.
On Friday, a Merrill Lynch analyst downgraded the Houston-based company's stock to "Neutral" from "Buy."
Superior Offshore shares dropped 77 cents, or 9 percent, to close at $7.83, after plunging 24 percent to $6.56 earlier in the session. The stock has dropped more than 40 percent since its initial public offering priced at $15 in April.
In a Securities and Exchange Commission filing, Superior Offshore said the third-quarter filing was delayed as the company determines whether it is required to reclassify long-term debt as current debt.
Superior Offshore said the reclassification may be necessary under the terms of a waiver from a lender related to defaults on the company's senior secured term loan facility. The company is currently negotiating a term loan facility with another lender to refinance the facility.
Superior said it does not expect that the issue will materially affect its previously reported results from operations.
On Thursday, Superior Offshore said third-quarter earnings plunged 74 percent to $3.6 million, or 14 cents per share, from $13.7 million, or 92 cents per share, in the prior-year period. The third-quarter results included one-time charges of $900,000, or 3 cents per share.
Quarterly revenue rose 17 percent to $75.5 million, from $64.4 million in the third quarter of fiscal year 2007.
On Thursday, JPMorgan analyst David Smith noted that the earnings results fell short of Wall Street forecasts, but said the company its achieving some key operational objectives.