PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
TRICO MARINE SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands except share and per share amounts)

June 30,
2002
(Unaudited)

December 31,
2001

ASSETS

Current assets:

$

49,519

$

31,954

613

670

34,498

37,415

4,892

3,159

706

706

        Total current assets

90,228

73,904

Property and equipment, at cost:

    Land and buildings

4,138

3,806

    Marine vessels

637,066

555,595

    Transportation and other

4,642

4,429

    Construction-in-progress

9,624

7,154

655,470

570,984

Less accumulated depreciation and amortization

142,565

120,927

        Net property and equipment

512,905

450,057

Goodwill

102,059

85,728

Other assets

36,841

28,926

Deferred income taxes

27,018

17,097

$

769,051

$

655,712

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

    Current portion of long-term debt

$

10,274

$

4,540

    Accounts payable

8,373

9,302

    Accrued expenses

8,268

5,370

    Accrued insurance reserve

2,638

1,766

    Accrued interest

4,498

9,150

    Income taxes payable

562

601

        Total current liabilities

34,613

30,729

Long-term debt

375,067

300,555

Deferred income taxes

37,253

30,686

Other non-current liabilities

2,063

2,016

Total liabilities

448,996

363,986

Commitments and contingencies

Stockholders' equity:

    Preferred stock, $.01 par value, 5,000,000 shares authorized, no

        shares issued at June 30, 2002 and December 31, 2001

-

-

    Common stock, $.01 par value, 55,000,000 shares authorized, 36,334,367 and

        36,326,367 shares issued and 36,262,335 and 36,254,335 shares outstanding

        at June 30, 2002 and December 31, 2001, respectively

363

363

    Additional paid-in capital

337,334

337,283

    Retained earnings (accumulated deficit)

(1,046)

17,531

    Accumulated other comprehensive loss

(16,595)

(63,450)

    Treasury stock, at par value, 72,032 shares

(1)

(1)

        Total stockholders' equity

320,055

291,726

$

769,051

$

655,712

The accompanying notes are an integral part of these consolidated financial statements.

TRICO MARINE SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except share and per share amounts)

Three Months Ended
June 30,

Six Months Ended
June 30,

2002

2001

2002

2001

Revenues:

     Charter hire

$

32,593

$

49,961

$

64,674

$

93,216

     Other vessel income

29

25

56

47

          Total revenues

32,622

49,986

64,730

93,263

Operating expenses:

     Direct vessel operating expenses and other

20,778

21,203

40,118

40,532

     General and administrative

3,680

3,176

7,214

6,297

     Loss (gain) on sale of assets

78

(381)

(430)

(949)

     Amortization of marine inspection costs

2,631

3,350

5,321

6,563

     Depreciation and amortization expense

7,774

8,218

15,170

16,530

          Total operating expenses

34,941

35,566

67,393

68,973

Operating income (loss)

(2,319)

14,420

(2,663)

24,290

Interest expense

(6,836)

(6,602)

(12,903)

(13,319)

Amortization of deferred financing costs

(364)

(333)

(712)

(670)

Other income (expense), net

(1,684)

381

(2,172)

528

Income (loss) before income taxes and extraordinary item

(11,203)

7,866

(18,450)

10,829

Income tax expense (benefit)

(3,522)

2,420

(5,976)

3,420

Income (loss) before extraordinary item

(7,681)

5,446

(12,474)

7,409

Extraordinary item, net of taxes

(6,103)

-

(6,103)

-

Net income (loss)

$

(13,784)

$

5,446

$

(18,577)

$

7,409

Basic earnings per common share:

     Income (loss) before extraordinary item

$

(0.21)

$

0.15

$

(0.34)

$

0.20

     Extraordinary item, net of taxes

(0.17)

-

(0.17)

-

     Net income (loss)

$

(0.38)

$

0.15

$

(0.51)

$

0.20

Average common shares outstanding

36,260,002

36,251,049

36,257,168

36,248,708

Diluted earnings per common share:

     Income (loss) before extraordinary item

$

(0.21)

$

0.15

$

(0.34)

$

0.20

     Extraordinary item, net of taxes

(0.17)

-

(0.17)

-

     Net income (loss)

$

(0.38)

$

0.15

$

(0.51)

$

0.20

Average common shares outstanding

36,260,002

36,894,183

36,257,168

36,919,982

The accompanying notes are an integral part of these consolidated financial statements.

TRICO MARINE SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

Six Months Ended
June 30,

2002

2001

Net income (loss)

$           (18,577)

$               7,409

Adjustments to reconcile net income (loss) to net cash provided
   by (used in) operating activities:

     Depreciation and amortization

21,182

23,728

     Deferred marine inspection costs

(4,251)

(6,087)

     Deferred income taxes

(6,285)

3,231

     Gain on sales of assets

(430)

(949)

     Provision for doubtful accounts

60

60

     Extraordinary item, net of taxes

6,103

Changes in operating assets and liabilities:

     Restricted cash

174

97

     Accounts receivable

4,770

(8,233)

     Prepaid expenses and other current assets

(1,121)

(640)

     Accounts payable and accrued expenses

(3,230)

4,073

     Other, net

(5,395)

(520)

          Net cash provided by (used in) operating activities

(7,000)

22,169

Cash flows from investing activities:

     Purchases of property and equipment

(34,932)

(6,974)

     Proceeds from sales of assets

1,940

1,767

     Other

(750)

(477)

          Net cash used in investing activities

(33,742)

(5,684)

Cash flows from financing activities:

     Proceeds from issuance of common stock, net of expenses

51

55

     Proceeds from issuance of long-term debt

278,551

1,075

     Repayment of long-term debt

(216,359)

(7,762)

     Deferred financing costs and other

(5,789)

(5)

          Net cash provided by (used in) financing activities

56,454

(6,637)

Effect of exchange rate changes on cash and cash equivalents

1,853

(183)

Net increase in cash and cash equivalents

17,565

9,665

Cash and cash equivalents at beginning of period

31,954

18,094

Cash and cash equivalents at end of period

$             49,519

$             27,759

Supplemental information:

     Income taxes paid

$                  334

$                  110

Interest paid

$             19,079

$             13,393

     The accompanying notes are an integral part of these consolidated financial statements.

TRICO MARINE SERVICES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(In thousands)

Three Months Ended
June 30,

Six Months Ended
June 30,

2002

2001

2002

2001

Net income (loss)

$  (13,784)

$  5,446

$

(18,577)

$     7,409

Other comprehensive income (loss), net of tax:

     Foreign currency translation adjustments

43,581

(5,090)

46,855