<PAGE>   1
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                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                 --------------

                                   FORM 10-Q

                                 --------------


[X]            QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                      THE SECURITIES EXCHANGE ACT OF 1934

                  For the Quarterly Period Ended June 30, 1999

                                       OR

[ ]            TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                          OF THE EXCHANGE ACT OF 1934

                        Commission file number 333-38157

                            FIRST WAVE MARINE, INC.
             (Exact name of Registrant as specified in its charter)






          DELAWARE                                      76-0461352
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)

            2102 BROADWAY
           HOUSTON, TEXAS                                77012
(Address of principal executive offices)               (Zip Code)

       Registrant's telephone number, including area code: (713) 847-4600

         Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. [X] Yes      [ ] No

 Number of shares of common stock outstanding as of August 11, 1999: 11,756,955

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<PAGE>   2

                            FIRST WAVE MARINE, INC.

                               INDEX TO FORM 10-Q
                        FOR THE THREE MONTH PERIOD ENDED
                                 JUNE 30, 1999


<TABLE>
<CAPTION>
                                                                                                        PAGE

<S>                                                                                                    <C>
PART I:    FINANCIAL INFORMATION

  Item 1.    Financial Statements

               Consolidated Balance Sheets - June 30, 1999 and
                   December 31, 1998                                                                     1

               Consolidated Statements of Operations for the Three Month
                   and Six Month Periods Ended June 30, 1999 and 1998                                    2

               Consolidated Statements of Cash Flows for the Six Month
                   Periods Ended June 30, 1999 and 1998                                                  3

               Notes to Unaudited Consolidated Financial Statements                                      4

  Item 2.    Management's Discussion and Analysis of Financial Condition
                   and Results of Operations                                                             5

  Item 3.    Quantitative and Qualitative Disclosures about Market Risk                                  9

PART II:   OTHER INFORMATION

Item 1.      Legal Proceedings                                                                          10

Item 6.      Exhibits and Reports on Form 8-K                                                           10
</TABLE>


<PAGE>   3

                         PART I: FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS

                    FIRST WAVE MARINE, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
                     (In thousands, except per share data)

<TABLE>
<CAPTION>
                                                                                          June 30,      December 31,
                                     ASSETS                                                 1999            1998
                                                                                          --------      ------------
                                                                                        (Unaudited)
<S>                                                                                       <C>           <C>
            Current assets:
               Cash and cash equivalents                                                  $  6,423        $  1,654
               Investments available-for-sale                                                   46           2,102
               Investments held-to-maturity                                                   --             6,262
               Accounts receivable, less allowance of $243 in 1999
                  and $232 in 1998                                                          16,533          19,369
               Inventories                                                                     934             857
               Costs and estimated earnings in excess of billings on
                  uncompleted contracts                                                      4,097           2,615
               Prepaids and other                                                            1,159             785
               Income tax receivable                                                         2,001             492
               Deferred income taxes                                                         1,228             826
                                                                                          --------        --------
                  Total current assets                                                      32,421          34,962
            Property and equipment, net                                                     74,781          73,067
            Financing costs, net                                                             3,780           4,021
            Goodwill and other intangibles, net                                             14,974          15,214
            Deposits and other                                                               1,186           1,119
                                                                                          --------        --------
                                                                                          $127,142        $128,383
                                                                                          ========        ========

                                     LIABILITIES AND STOCKHOLDERS' EQUITY

            Current liabilities:
               Accounts payable                                                           $  3,553        $  2,944
               Accrued liabilities                                                           6,429           6,041
               Billings in excess of costs and estimated earnings on
                   uncompleted contracts                                                       688             255
               Accrued interest payable                                                      4,458           4,125
               Current portion of long-term debt and capital lease obligation                  239             167
               Notes payable                                                                   191             199
                                                                                          --------        --------

                  Total current liabilities                                                 15,558          13,731
            Long-term obligations                                                            3,992           3,042
            Subordinated debt                                                                6,328           6,328
            Senior notes                                                                    90,000          90,000
            Deferred income taxes                                                            5,732           5,727
            Other liabilities                                                                1,405           1,279
            Commitments and contingencies                                                     --              --
            Stockholders' equity:
               Preferred stock, $.01 par value, 2,000 shares
                   authorized, no shares issued                                               --              --
               Common stock, $.01 par value, 21,000 shares
                   authorized, 11,757 shares issued and outstanding
                   at June 30, 1999 and December 31, 1998                                      118             118
               Additional paid-in capital                                                    3,490           3,490
               Retained earnings                                                               519           4,668
                                                                                          --------        --------
                                                                                             4,127           8,276
                                                                                          --------        --------
                                                                                          $127,142        $128,383
                                                                                          ========        ========
</TABLE>

        The accompanying notes are an integral part of these statements.


                                       1
<PAGE>   4

                    FIRST WAVE MARINE, INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF OPERATIONS
               For the Three and Six Month Periods Ended June 30,
                     (In thousands, except per share data)
                                  (Unaudited)



<TABLE>
<CAPTION>
                                                                     Three Months Ended            Six Months Ended
                                                                          June 30,                     June 30,
                                                                    1999           1998          1999           1998
                                                                  --------       --------      --------       --------

<S>                                                               <C>            <C>           <C>            <C>
Revenues:
   Repair and upgrades                                            $ 12,848       $ 17,328      $ 34,030       $ 30,696
   New construction                                                  4,177          2,723         7,596          3,742
   Environmental services                                            1,038          1,328         2,338          2,709
                                                                  --------       --------      --------       --------
                                                                    18,063         21,379        43,964         37,147
Cost of revenues                                                    15,380         13,749        35,224         23,931
                                                                  --------       --------      --------       --------
   Gross profit                                                      2,683          7,630         8,740         13,216
General and administrative expenses                                  5,648          3,735        10,112          7,439
                                                                  --------       --------      --------       --------
   Income from operations                                           (2,965)         3,895        (1,372)         5,777
Interest expense - net                                               2,510          2,338         5,038          4,064
                                                                  --------       --------      --------       --------
   Income before income taxes and extraordinary item                (5,475)         1,557        (6,410)         1,713
Income tax expense (benefit)                                        (1,962)           646        (2,261)           729
                                                                  --------       --------      --------       --------
   Income before extraordinary item                                 (3,513)           911        (4,149)           984
Extraordinary item-loss on extinguishment of debt, net
   of income tax benefit of $559                                      --             --            --             (933)
                                                                  --------       --------      --------       --------

   Net income (loss)                                              $ (3,513)      $    911      $ (4,149)      $     51
                                                                  ========       ========      ========       ========

Basic and diluted earnings per share:
   Before extraordinary item                                      $  (0.30)      $   0.08      $  (0.35)      $   0.08
   Extraordinary item                                                 --             --            --            (0.08)
                                                                  --------       --------      --------       --------
   Net income (loss)                                              $  (0.30)      $   0.08      $  (0.35)      $   0.00
                                                                  ========       ========      ========       ========

Weighted-averaged shares:
   Basic and diluted                                                11,757         11,757        11,757         11,757
                                                                  ========       ========      ========       ========
</TABLE>

        The accompanying notes are an integral part of these statements.




                                       2
<PAGE>   5

                    FIRST WAVE MARINE, INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                    For the Six Month Periods Ended June 30,
                                 (In thousands)
                                  (Unaudited)


<TABLE>
<CAPTION>
                                                                                              1999           1998
                                                                                            --------       --------
<S>                                                                                         <C>            <C>
Cash flows from operating activities:
   Net income (loss)                                                                        $ (4,149)      $     51
   Adjustments to reconcile net income (loss) to net cash provided by
         operating activities:
      Depreciation and amortization                                                            3,169          1,833
      Accretion of discounts on investments held-to-maturity                                     (33)          (235)
      Provision for doubtful accounts                                                            132            140
      Gain on sale of property and equipment                                                    --               (8)
      Write-off of property and equipment                                                        439             68
      Write-off of financing costs                                                              --              469
      Deferred income tax provision                                                             (397)           511
      Change in assets and liabilities, net of effects from acquisitions:
        Accounts receivable                                                                    2,704         (7,764)
        Inventories                                                                              (77)          (299)
        Costs and estimated earnings in excess of billings on uncompleted contracts           (1,482)           831
        Other assets                                                                            (374)           716
        Income tax receivable                                                                 (1,509)        (1,613)
        Deposits and other                                                                       (67)          (326)
        Accounts payable                                                                         609          1,450
        Accrued liabilities                                                                      388          3,305
        Billings in excess of costs and estimated earnings on uncompleted contracts              433           --
        Accrued interest payable                                                                 333          3,488
        Other liabilities                                                                        126            558
              Net cash provided by operating activities                                     --------       --------
                                                                                                 245          3,175
                                                                                            --------       --------
Cash flows from investing activities:
   Acquisition of property and equipment                                                      (3,813)       (11,605)
   Acquisition of businesses, net of cash acquired                                              --          (19,399)
   Purchase of investments held-to-maturity                                                     --          (10,792)
   Proceeds from maturity of investments held-to-maturity                                      6,274           --
   Proceeds from sales of investments available-for-sale                                       2,077           --
   Purchase of investments available-for-sale                                                   --           (2,000)
   Proceeds from sales of property and equipment                                                  35             31
   Asset acquisition costs                                                                      --              (30)
                                                                                            --------       --------
               Net cash provided by (used in) investing activities                             4,573        (43,795)
                                                                                            --------       --------
Cash flows from financing activities:
   Proceeds from issuance of debt                                                               --           90,000
   Payments on long-term debt and notes payable                                                  (49)       (27,927)
   Net payments on revolving lines of credit                                                    --           (1,027)
   Financing costs                                                                              --           (3,433)
                                                                                            --------       --------
               Net cash (used in) provided by financing activities                               (49)        57,613
                                                                                            --------       --------

               Net increase in cash and cash equivalents                                       4,769         16,993
Cash and cash equivalents at beginning of period                                               1,654            378
                                                                                            --------       --------
Cash and cash equivalents at end of period                                                  $  6,423       $ 17,371
                                                                                            ========       ========
</TABLE>


        The accompanying notes are an integral part of these statements.


                                       3
<PAGE>   6

                    FIRST WAVE MARINE, INC. AND SUBSIDIARIES
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
                     (In thousands, except per share data)

Note 1   In the opinion of management the accompanying unaudited consolidated
         financial statements reflect all adjustments necessary to present
         fairly the financial position of First Wave Marine, Inc. ("First Wave"
         or the "Company") as of June 30, 1999, the results of operations for
         the three and six month periods ended June 30, 1999 and 1998, and cash
         flows for the six month periods ended June 30, 1999 and 1998. All such
         adjustments are of a normal recurring nature. These interim financial
         statements should be read in conjunction with the audited financial
         statements and related notes included in the Company's Annual Report
         on Form 10-K for the year ended December 31, 1998.

Note 2   The consolidated financial statements include the accounts of First
         Wave and its wholly-owned subsidiaries. All material intercompany
         transactions are eliminated in consolidation.

Note 3   The results of operations for the three and six month periods ended
         June 30, 1999 are not necessarily indicative of the results to be
         expected for the entire year.

Note 4   Legal Proceedings - On August 11, 1999, one of the Company's
         subsidiaries, Newpark Shipbuilding-Brady Island, Inc.
         ("Newpark-Brady"), received an Information from the State of Texas
         charging Newpark-Brady with a one count water pollution misdemeanor,
         for allegedly discharging industrial waste from a barge in violation of
         Texas Water Code ss. 26.121(a)(1) on or about July 30, 1997.
         Newpark-Brady is presently investigating the matter and plans to
         vigorously defend itself against the charge.

         On August 13, 1998, Newpark-Brady was the subject of a search warrant
         executed by a multi-agency environmental task force. The government's
         search warrant was primarily directed at the facility's wastewater
         treatment plant. The Board of Directors of the Company authorized
         outside legal counsel to conduct an internal corporate investigation
         of the matters raised by the agencies in their investigation. In
         addition, the Company promptly undertook aggressive measures to assure
         environmental compliance. As of December 1998, the internal
         investigation concluded that no officer or director of Newpark-Brady
         or the Company participated in or had knowledge of any non-compliance.
         The investigation did find some evidence of past instances of
         non-compliance with environmental laws and regulations in connection
         with Newpark-Brady's operation and monitoring of the facility's
         wastewater treatment system. A state grand jury investigation into
         these matters began in early February 1999. In April 1999, for reasons
         apparently no more significant than prosecutorial availability, the
         investigation was transferred to the federal government. At this time,
         the Company cannot estimate the impact that may result from
         enforcement action, if any, related to the government's investigation.
         The Company does not believe that any aspects of the matters described
         above will subject the parent company, First Wave Marine, Inc., to
         criminal liability.

Note 5   Year 2000 - The Year 2000 issue relates to limitations in computer
         systems and applications that may prevent proper recognition of the
         Year 2000. The potential effect of the Year 2000 issue on the Company
         and its business partners will not be fully determinable until the
         Year 2000 and thereafter. If Year 2000 modifications are not properly
         completed either by the Company or entities with which the Company
         conducts business, the Company's revenues and financial condition
         could be adversely impacted.


                                       4
<PAGE>   7

ITEM 2.      MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
             RESULTS OF OPERATIONS

             This report on Form 10-Q contains "forward-looking statements"
             within the meaning of Section 27A of the Securities Act of 1933,
             as amended, and Section 21E of the Securities Exchange Act of
             1934, as amended. All statements other than statements of
             historical facts included in this Form 10-Q, including statements
             in this "Management's Discussion and Analysis of Financial
             Condition and Results of Operations," as well as statements as may
             be made by management, orally or in writing related thereto, are
             forward-looking statements. Forward-looking statements generally
             are accompanied by words such as "anticipate", "believe",
             "estimate", "expect" or similar statements. Such forward-looking
             statements are subject to certain risks, uncertainties and
             assumptions, including (i) risks of reduced levels of demand for
             the Company's services resulting from reduced levels of capital
             expenditures of the Company's customers in the offshore drilling
             rig, offshore support vessel, offshore barge, ship and inland
             marine industries, (ii) risks related to the expansion of
             operations, (iii) operating risks relating to conversion and
             repair of drilling rigs, offshore support vessels, offshore
             barges, ships and inland marine vessels, (iv) contract bidding
             risks, (v) risks related to dependence on significant customers,
             (vi) risks related to the highly leveraged posture of the Company
             and (vii) risks related to regulatory and environmental matters
             including, risks relating to the ongoing environmental
             investigation of one of the Company's subsidiaries. Should one or
             more of these risks or uncertainties materialize, or should
             underlying assumptions prove incorrect, actual results may vary
             materially from those anticipated, estimated or projected.
             Although the Company believes that the expectations reflected in
             such forward-looking statements are reasonable, no assurance can
             be given that such expectations will prove to have been correct.

             The following discussion of the Company's financial condition,
             results of operations, liquidity and capital resources should be
             read in conjunction with the Company's Consolidated Financial
             Statements and the Notes to the Consolidated Financial Statements
             included elsewhere in this report.

             GENERAL

             The Company's business is primarily derived from providing repair
             and upgrade services to inland and offshore marine vessels,
             including barges, boats, drilling rigs and ships. To a lesser
             extent the Company engages in new construction of such inland and
             offshore marine vessels.

             First Wave currently operates three shipyards in the Houston,
             Texas area (Brady Island, Greens Bayou and Pasadena) and three in
             the Galveston, Texas area (East Pelican Island, West Pelican
             Island and Galveston Island). The Company also provides related
             environmental services, including cleaning, degassing and
             wastewater treatment. The Company currently employs approximately
             1,100 employees at its six shipyards.

             RECENT DEVELOPMENTS

             On August 11, 1999, one of the Company's subsidiaries,
             Newpark-Brady, received an Information from the State of Texas
             charging Newpark-Brady with a one count water pollution
             misdemeanor, for allegedly discharging industrial waste from a
             barge in violation of Texas Water Code ss. 26.121(a)(1) on or about
             July 30, 1997. Newpark-Brady is presently investigating the matter
             and plans to vigorously defend itself against the charge.

             On August 13, 1998, Newpark-Brady was the subject of a search
             warrant executed by a multi-agency environmental task force. The
             government's search warrant was primarily directed at the
             facility's wastewater treatment plant. The Board of Directors of
             the Company authorized outside legal counsel to conduct an
             internal corporate investigation of the matters raised by the
             agencies in their investigation. In addition, the Company promptly
             undertook aggressive measures to assure environmental compliance.
             As of December 1998, the internal investigation concluded that no



                                       5
<PAGE>   8

             officer or director of Newpark-Brady or the Company participated
             in or had knowledge of any non-compliance. The investigation did
             find some evidence of past instances of non-compliance with
             environmental laws and regulations in connection with
             Newpark-Brady's operation and monitoring of the facility's
             wastewater treatment system. A state grand jury investigation into
             these matters began in early February 1999. In April 1999, for
             reasons apparently no more significant than prosecutorial
             availability, the investigation was transferred to the federal
             government. At this time, the Company cannot estimate the impact
             that may result from enforcement action, if any, related to the
             government's investigation. The Company does not believe that any
             aspects of the matters described above will subject the parent
             company, First Wave Marine, Inc., to criminal liability.

             RESULTS OF OPERATIONS

             Comparison of the three months ended June 30, 1999 to the three
             months ended June 30, 1998.

             Revenues decreased 16% to $18.1 million in the 1999 period,
             compared with $21.4 million in the 1998 period, primarily due to
             poor market conditions in all sectors served by the Company. The
             decline in oilfield related work has been the result of a
             reduction in the capital budgets of drilling rig contractors and
             offshore support vessel operators due to the low prices of oil
             during 1998 continuing through early 1999. The decline in barge
             repair work has in large part been related to the uncertainty
             surrounding market consolidation of barge operators, causing the
             deferral of maintenance on large fleets being consolidated.
             Additionally, declines during 1998 and early 1999 in the prices of
             oil and natural gas had a negative impact on barge operators and
             their capital budgets. As a result of difficult market conditions,
             billable labor hours related to repair work were down
             significantly. The Company performed work at lower rates in order
             to maintain certain volume levels and retain its work force.

             Cost of revenues rose 12% to $15.4 million in the 1999 period from
             $13.7 million in the 1998 period. Cost of revenues increased while
             revenues decreased primarily due to the change in mix of work.

             Gross profit decreased 65% to $2.7 million in the 1999 period from
             $7.6 million in the 1998 period. The gross profit margin decreased
             to 15% in the 1999 period from 36% in the 1998 period, due in part
             to the increase in lower margin new construction revenue, the
             decrease in higher margin inland boat and barge repair revenue,
             and the decrease in higher margin oilfield related repair and
             conversion work as percentages of total revenues. The declines in
             revenue were combined with substantial margin pressure in all
             market sectors served. Additionally, the Company performed work at
             lower rates in order to maintain certain volume levels and retain
             its work force.

             General and administrative expenses increased 51% to $5.6 million
             in the 1999 period from $3.7 million in the 1998 period. General
             and administrative expenses as a percentage of revenues for the
             1999 period represented 31% of total revenues, as compared to 17%
             for the 1998 period. The increase in general and administrative
             expenses was due to the following: the increased staffing at
             start-up facilities and the corporate organization, expenses
             related to workforce development and training, legal expenses for
             the on-going environmental investigation, and expenses related to
             development of the Company's strategy for future expansion.
             Additionally, during the current period the Company wrote-off
             approximately $260,000 of costs related to an unsuccessful
             acquisition attempt and recorded an impairment loss of
             approximately $325,000 related to a specialized piece of equipment
             not in use.

             Net interest expense increased to $2.5 million in the 1999 period
             from $2.3 million in the 1998 period primarily due to the decrease
             in self-constructed assets, resulting in less capitalized
             interest.

             The decrease in income tax expense from approximately $646,000 in
             the 1998 period to a net income tax benefit of $2.0 million in the
             1999 period is directly attributable to the decrease in income
             before income taxes.



                                       6
<PAGE>   9

             Comparison of the six months ended June 30, 1999 to the six
             months ended June 30, 1998.

             Revenues increased 18% to $44.0 million in the 1999 period,
             compared with $37.1 million in the 1998 period. The 1998 period
             included only five months of revenue generation by the Pasadena
             and West Pelican Island facilities acquired on February 2, 1998,
             and one and one-half months of revenue generation by the Galveston
             Island facility acquired on May 15, 1998. Though revenues in total
             increased, revenues for the period were adversely affected by the
             general decline in market conditions in all sectors served by the
             Company. As a result of poor market conditions, billable labor
             hours related to repair work were down significantly.

             Cost of revenues rose 47% to $35.2 million in the 1999 period from
             $23.9 million in the 1998 period, due primarily to the change in
             mix of work.

             Gross profit decreased 34% to $8.7 million in the 1999 period from
             $13.2 million in the 1998 period. The gross profit margin
             decreased to 20% in the 1999 period from 36% in the 1998 period,
             due in part to the increase in lower margin new construction
             revenue, the decrease in higher margin inland boat and barge
             repair revenue, and the decrease in higher margin oilfield related
             repair and conversion work as percentages of total revenues. The
             declines in revenue were combined with substantial margin pressure
             in all market sectors served. Additionally, the Company performed
             work at lower rates in order to maintain certain volume levels and
             retain its work force. During the first quarter of 1999,
             disruptions caused by an initiative to upgrade production and
             control systems at the recently acquired Galveston Island facility
             had a negative impact of approximately $500,000 on the gross
             profit margin.

             General and administrative expenses increased 36% to $10.1 million
             in the 1999 period from $7.4 million in the 1998 period. General
             and administrative expenses as a percentage of revenues for the
             1999 period represented 23% of total revenues, as compared to 20%
             for the 1998 period. The increase in general and administrative
             expenses was due to the following: the increased staffing at
             start-up facilities and the corporate organization, expenses
             related to workforce development and training, legal expenses for
             the on-going environmental investigation, and expenses related to
             development of the Company's strategy for future expansion.
             Additionally, during the second quarter of 1999 the Company
             wrote-off approximately $260,000 of costs related to an
             unsuccessful acquisition attempt and recorded an impairment loss
             of approximately $325,000 related to a specialized piece of
             equipment that is not in use.

             Net interest expense rose to $5.0 million in the 1999 period from
             $4.1 million in the 1998 period primarily due to six months of
             interest expense on the $90 million 11% Senior Notes reflected in
             the 1999 period and only five months interest expense on the
             Senior Notes in the 1998 period.

             The decrease in income tax expense from approximately $729,000 in
             the 1998 period to a net income tax benefit of $2.3 million in the
             1999 period is directly attributable to the decrease in income
             before income taxes.

             During the 1998 period, the Company recorded an extraordinary
             item of ($933,000) which represented a $1.5 million loss on
             extinguishment of debt, net of an income tax benefit of $559,000.
             No extraordinary item was recorded in the 1999 period.



                                       7
<PAGE>   10


             INFLATION AND CHANGING PRICES

             The Company does not believe that general price inflation has had
             a significant impact on the Company's results of operations during
             the periods presented. To the extent that the effects of inflation
             are not offset by improvements in manufacturing and purchasing
             efficiency and labor productivity, the Company generally has been
             able to take such effects into account in pricing its contracts
             with customers. There can be no assurance, however, that inflation
             will not have a material effect on the Company's business in the
             future.

             LIQUIDITY AND CAPITAL RESOURCES

             The Company's ongoing liquidity requirements arise primarily from
             its need to service debt, fund working capital, acquire additional
             shipyard facilities and make capital improvements to its
             facilities. Prior to the Company's Senior Notes offering in 1998,
             bank financing and internally generated funds provided funding for
             these activities.

             The Company's $10.0 million revolving line of credit with a
             financial institution matured on April 30, 1999. The Company is
             currently negotiating with a lender for a line of credit on more
             restrictive terms and at a higher rate of interest.

             A subsidiary of the Company had an additional $1.75 million
             revolving line of credit with a financial institution secured by
             accounts receivable. The subsidiary has recently moved this line
             of credit to another financial institution and increased the line
             of credit to $3.0 million.

             As of August 11, 1999, the Company did not have any borrowings
             outstanding on its line of credit.

             During the first quarter of 1999, the Company financed the
             purchase of certain machinery and equipment totaling $929,000. The
             largest financing was for $860,000 which bears interest at 8% per
             annum with principal and interest of approximately $12,000 due
             monthly over a seven year period, and a final balloon payment of
             $86,000 due at maturity.

             Net cash provided by operating activities for the six month
             periods ended June 30, 1999 and 1998 was $245,000 and $3.2
             million, respectively. The decrease in cash generated from
             operations is primarily due to the net loss for the period,
             partially offset by the decrease in accounts receivable.

             Net cash provided by (used in) investing activities was $4.6
             million and ($43.8) million for the six month periods ended June
             30, 1999 and 1998, respectively. During the 1999 period, cash
             provided by investing activities was generated by sales and
             maturities of investments which were partially offset by asset
             additions.

             Net cash (used in) provided by financing activities was ($49,000)
             and $57.6 million for the six month periods ended June 30, 1999
             and 1998, respectively.

             Management believes that with the cash generated from operations,
             and, if necessary, borrowings under the Company's line of credit,
             or an infusion of equity, the Company will have sufficient
             resources available to meet its anticipated requirements for
             capital expenditures and working capital needs through the
             remainder of fiscal year 1999.

             YEAR 2000 DISCLOSURES

             Many computer software systems, as well as certain hardware and
             equipment containing date sensitive data, were structured to
             utilize a two-digit date field meaning that they may not be able
             to properly recognize dates in the Year 2000 and beyond. This
             could result in significant system and



                                       8
<PAGE>   11

             equipment failures. The Company has completed a detailed process
             to identify potential Year 2000 problems and to implement
             solutions for all of its information technology ("IT") as well as
             non-IT systems. Necessary actions have been taken to ensure that
             essential IT and non-IT systems and services will continue to
             operate on and after January 1, 2000. The Company's technology
             projects are addressing the Year 2000 issue in those areas where
             replacement systems are being installed for functionality
             reasons. Where existing systems are expected to remain in place
             beyond 1999, the Company is implementing changes utilizing a
             combination of internal and external resources. In addition, the
             Company has communicated with its major customers, suppliers and
             financial institutions to coordinate year 2000 readiness.

             Based on the steps the Company is taking to address this issue and
             its progress to date, the Company does not expect the financial
             impact of Year 2000 date conversion to be material to its
             financial statements. However, the Company can give no assurance
             that the systems of other companies on which the Company's systems
             rely will be modified or otherwise addressed in a timely manner,
             or that any failure by another company would not have a material
             impact on the Company's financial statements.

ITEM 3.      QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

             The Company is only minimally exposed to market risk which could
             result from adverse changes in interest rates.

             Total long-term debt at June 30, 1999 included on floating rate
             facility in the amount of $1.75 million. The Company had no
             borrowings on this facility in 1999. As a result, there was no
             impact on 1999 cash flows as a result of market risks. On July 1,
             1999, the Company replaced this facility with a new floating-rate
             facility in the amount of $3.0 million. As of August 11, 1999,
             there were no borrowings on this facility. In the future, the
             Company's annual interest could fluctuate because the interest rate
             on the facility is a floating rate. The Company did not have any
             open derivative contracts relating to its floating rate debt.


                                       9
<PAGE>   12

                          PART II: OTHER INFORMATION

ITEM 1.           LEGAL PROCEEDINGS.

                  On August 11, 1999, one of the Company's subsidiaries,
                  Newpark-Brady, received an Information from the State of
                  Texas charging Newpark-Brady with a one count water pollution
                  misdemeanor, for allegedly discharging industrial waste from
                  a barge in violation of Texas Water Code ss. 26.121(a)(1) on
                  or about July 30, 1997. Newpark-Brady is presently
                  investigating the matter and plans to vigorously defend
                  itself against the charge.

                  On August 13, 1998, Newpark-Brady was the subject of a search
                  warrant executed by a multi-agency environmental task force.
                  The government's search warrant was primarily directed at the
                  facility's wastewater treatment plant. The Board of Directors
                  of the Company authorized outside legal counsel to conduct an
                  internal corporate investigation of the matters raised by the
                  agencies in their investigation. In addition, the Company
                  promptly undertook aggressive measures to assure
                  environmental compliance. As of December 1998, the internal
                  investigation concluded that no officer or director of
                  Newpark-Brady or the Company participated in or had knowledge
                  of any non-compliance. The investigation did find some
                  evidence of past instances of non-compliance with
                  environmental laws and regulations in connection with
                  Newpark-Brady's operation and monitoring of the facility's
                  wastewater treatment system. A state grand jury investigation
                  into these matters began in early February 1999. In April
                  1999, for reasons apparently no more significant than
                  prosecutorial availability, the investigation was transferred
                  to the federal government. At this time, the Company cannot
                  estimate the impact that may result from enforcement action,
                  if any, related to the government's investigation. The
                  Company does not believe that any aspects of the matters
                  described above will subject the parent company, First Wave
                  Marine, Inc., to criminal liability.

ITEM 2-5.         NOT APPLICABLE.

ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K.

                  (a) Exhibits

                      Exhibit
                      Number        Description

                      *10.1      Loan Agreement between Newpark
                                 Shipbuilding-Brady Island, Inc., as Borrower,
                                 and Sterling Bank, as Lender, dated July 1,
                                 1999.

                      *27.1      Financial Data Schedule.

                                 *  Filed herewith

                  (b) Reports on Form 8-K

                      None



                                      10
<PAGE>   13

                                   SIGNATURES




Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.


                                             FIRST WAVE MARINE, INC.





August 13, 1999                          By:  /s/ Frank R. Pierce
                                              ---------------------------------
                                                  Frank R. Pierce
                                                  Vice President and
                                                  Chief Financial Officer





August 13, 1999                          By:  /s/ Dale E. Schexnayder
                                              ---------------------------------
                                                  Dale E. Schexnayder
                                                  Corporate Controller


                                      11
<PAGE>   14

                                 EXHIBIT INDEX

<TABLE>
<CAPTION>
EXHIBIT
NUMBER                             DESCRIPTION
------                             -----------
<S>                           <C>
10.1                          Loan Agreement between Newpark Shipbuilding-Brady
                              Island, Inc., as Borrower, and Sterling Bank, as
                              Lender, dated July 1, 1999.

27.1                          Financial Data Schedule
</TABLE>