United States Segment .  Demand for the company’s vessels in the shallow water U.S. GOM offshore  vessel market steadily diminished between calendar year 2006 to 2009 as numerous drilling rigs migrated to  international areas to capitalize on strong market fundamentals that existed at that time. In response to the  departure of drilling rigs from the U.S. GOM, the company relocated 10 vessels (including two deepwater  vessels) to international locations during fiscal 2009, where the vessels secured more attractive term  contracts at generally higher day rates. A net seven vessels were transferred to international locations  during fiscal 2008. Although the number of drilling rigs in the U.S. GOM was low, the market for offshore  vessels tightened during the summer of 2008 due to an increase in E&P drilling activity resulting from high  natural gas prices, which reached the $13.00 per Mcf range in July 2008, but which fell to the $3.45 to  $3.60 range by mid-April 2009. Damage to the energy infrastructure caused by Hurricanes Gustav and Ike,  which hit the Louisiana and Texas coasts in September 2008, strengthened an already strong offshore  support vessel market. The resulting offshore vessels supply/demand fundamentals pushed vessel day  rates higher in the U.S. GOM. At the time, the U.S. GOM supply boat market had a significant number of  vessels previously stacked that could have resumed active status after drydocking and recertification. All of  the company’s available-for-work U.S.-based vessels were working at relatively full utilization prior to the  storms, and, after the storms, two of the company’s stacked vessels were drydocked and re-certificated to  respond to increased post-hurricane market demand. Demand for the company’s vessels was brisk for the  majority of the company’s fiscal 2009 second and third quarters. Demand waned throughout the fourth  quarter due partially to the winding down of repair work on the offshore energy infrastructure and due to day  rate and utilization weakness on the U.S.-based vessels that operated in the shallow and mid-water depths  of the U.S. GOM. The company’s fiscal 2009 consolidated net earnings increased approximately 17%, or $58.1 million, over  the net earnings generated during fiscal 2008, primarily due to higher average day rates. During fiscal 2009,  the company recorded $1.4 billion in revenues, an increase of approximately $120.7 million, or 9%, over its  fiscal 2008 revenues. Revenues generated by the company’s international segment increased approximately 15%, or $154.1 million, during fiscal 2009 as compared to fiscal 2008, while revenues  generated by the company’s U.S. segment decreased approximately 8%, or $12.9 million, during the same  comparative period. International segment vessel operating costs increased approximately 19%, or  $92.9 million, while U.S. segment vessel operating costs decreased approximately 17%, or $16.8 million,  during the same comparative period. A significant portion of the company's operations are conducted  internationally. Revenues generated from international vessel operations as a percentage of the company's  total revenues were 87% during fiscal 2009 compared to 84% in fiscal 2008. At March 31, 2009, the company had 409 owned or chartered vessels (excluding joint-venture vessels and  vessels withdrawn from service) in its fleet with an average age of 19.5 years. The average age of the  142 newer vessels at that time was 5.2 years. The remaining 267 vessels had an average age of  27.1 years. During fiscal 2009, the company's newer vessels generated $712.0 million, or 52%, of vessel  revenues and accounted for 59% of total vessel margin (vessel revenues less vessel operating expenses  less vessel depreciation) while the older vessels generated $644.3 million, or 48%, of vessel revenues and  accounted for the remaining 41% of vessel margin. International Segment Operations . Vessel revenues for the company’s international segment increased  approximately 15%, or $154.1 million, during fiscal 2009 as compared to fiscal 2008, due to an approximate  19% increase in total average day rates. Even though vessel revenues for the international segment  improved during fiscal 2009, the revenues were adversely affected by an increased number of maintenance  days on several of the company’s larger deepwater class of vessels resulting from a higher level of  drydockings that occurred during fiscal 2009. The increased number of maintenance days lowered the  utilization and average day rates on the deepwater class of vessels during fiscal 2009 compared to fiscal  2008. The company’s international deepwater class, towing-supply/supply class and offshore tug class of vessels  generated approximately 15%, 80% and 4%, respectively, of the revenue growth during fiscal 2009 as  compared to fiscal 2008. The company’s deepwater and towing-supply/supply class of vessels generated  increases in revenue during the comparative periods due to an increase in the number of vessels operating  internationally (approximately four additional deepwater vessels and 15 additional towing-supply/supply  vessels, excluding vessel dispositions) and due to higher average day rates. The average day rate on the  -38-  Consolidated Results