UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 29, 2015

ATWOOD OCEANICS, INC.
(Exact name of registrant as specified in its charter)

Texas
1-13167
74-1611874
(State or other jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)


15011 Katy Freeway, Suite 800, Houston, Texas
77094
(Address of principal executive offices)
(Zip Code)
 
 
 
 
 Registrant’s telephone number, including area code: (281) 749-7800
 
 
N/A
 
 
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
 


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 




Item 2.02    Results of Operations and Financial Condition.

Our press release dated July 29, 2015, concerning financial results for the third quarter ended June 30, 2015, furnished as Exhibit 99.1, is incorporated herein by reference.

Item 9.01     Financial Statements and Exhibits.

(d)    Exhibits

The exhibits listed below are furnished pursuant to Item 9.01 of this Form 8-K.
Exhibit Number
 
Exhibit Description
99.1
 
Press Release dated July 29, 2015.

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


 
ATWOOD OCEANICS, INC.
 
(Registrant)
Date: July 29, 2015


 
/s/ Mark W. Smith
 
Mark W. Smith
 
Senior Vice President and Chief Financial Officer


3

INDEX TO EXHIBIT

Exhibit Number
 
Exhibit Description
99.1
 
Press Release dated July 29, 2015.


4




Exhibit 99.1

FOR IMMEDIATE RELEASE - EARNINGS

HOUSTON, July 29, 2015 -- Atwood Oceanics, Inc. (NYSE: ATW) ("Company"), announced today that it had earned net income of $113.0 million or $1.73 per diluted share, on revenues of $330.6 million for the quarter ended June 30, 2015 compared to net income of $122.7 million or $1.89 per diluted share on revenues of $350.4 million for the quarter ended March 31, 2015 and compared to net income of $71.9 million or $1.11 per diluted share, on revenues of $292.8 million for the quarter ended June 30, 2014. For the nine months ended June 30, 2015, the Company earned net income of $281.9 million or $4.33 per diluted share, on revenues of $1.03 billion compared to net income of $228.6 million or $3.52 per diluted share, on revenues of $850.6 million for the nine months ended June 30, 2014.


 
For the Three Months Ended
 
(Unaudited)
(In thousands, except per share amounts)
June 30,
2015
 
March 31,
2015
 
June 30,
2014
Revenues
$
330,562

 
$
350,387

 
$
292,777

 
 
 
 
 
 
Income before Income Taxes
$
122,539

 
$
134,976

 
$
79,365

Provision for Income Taxes
(9,547
)
 
(12,307
)
 
(7,440
)
Net Income
$
112,992

 
$
122,669

 
$
71,925

 
 
 
 
 
 
Earnings per Common Share -
 
 
 
 
 
Basic
$
1.75

 
$
1.90

 
$
1.12

Diluted
$
1.73

 
$
1.89

 
$
1.11



 
For the Nine Months Ended
 
(Unaudited)
(In thousands, except per share amounts)
June 30,
2015
 
June 30,
2014
Revenues
$
1,032,675

 
$
850,580

 
 
 
 
Income before Income Taxes
$
312,855

 
$
270,908

Provision for Income Taxes
(30,976
)
 
(42,286
)
Net Income
$
281,879

 
$
228,622

 
 
 
 
Earnings per Common Share -
 
 
 
Basic
$
4.37

 
$
3.56

Diluted
$
4.33

 
$
3.52



5


ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 
Three Months Ended June 30,
 
Nine Months Ended June 30,
(In thousands, except per share amounts)
2015
 
2014
 
2015
 
2014
REVENUES:
 
 
 
 
 
 
 
Contract drilling
$
317,531

 
$
264,925

 
$
992,913

 
$
798,544

Revenues related to reimbursable expenses
13,031

 
27,852

 
39,762

 
52,036

Total revenues
330,562

 
292,777

 
1,032,675

 
850,580

 
 
 
 
 
 
 
 
COSTS AND EXPENSES:
 
 
 
 
 
 
 
Contract drilling
134,258

 
128,586

 
401,847

 
388,715

Reimbursable expenses
9,066

 
23,493

 
29,634

 
41,095

Depreciation
42,534

 
37,601

 
129,637

 
107,376

General and administrative
10,473

 
12,844

 
42,619

 
47,688

Asset impairment
—

 
—

 
60,777

 
—

(Gain) loss on sale of assets
27

 
7

 
15,362

 
(34,072
)
Other, net
—

 
(212
)
 
—

 
(1,815
)
 
196,358


202,319

 
679,876

 
548,987

 
 
 
 
 
 
 
 
OPERATING INCOME
$
134,204


$
90,458

 
$
352,799

 
$
301,593

 
 
 
 
 
 
 
 
OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
Interest expense, net of capitalized interest
(11,677
)
 
(11,219
)
 
(40,028
)
 
(30,932
)
Interest income
12

 
126

 
84

 
247

 
(11,665
)

(11,093
)
 
(39,944
)
 
(30,685
)
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
122,539


79,365

 
312,855

 
270,908

PROVISION FOR INCOME TAXES
9,547

 
7,440

 
30,976

 
42,286

NET INCOME
$
112,992


$
71,925

 
$
281,879

 
$
228,622

 
 
 
 
 
 
 
 
EARNINGS PER COMMON SHARE:
 
 
 
 
 
 
 
Basic
$
1.75

 
$
1.12

 
$
4.37

 
$
3.56

Diluted
$
1.73

 
$
1.11

 
$
4.33

 
$
3.52

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
Basic
64,649

 
64,309

 
64,557

 
64,204

Diluted
65,130

 
65,060

 
65,063

 
65,023


6


ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED ANALYSIS OF REVENUES AND DRILLING COSTS

 
REVENUES
 
Three Months Ended
 
Nine Months Ended
(In millions)
June 30,
2015
 
March 31,
2015
 
June 30,
2014
 
June 30,
2015
 
June 30,
2014
Ultra-Deepwater
$
174

 
$
183

 
$
118

 
$
524

 
$
326

Deepwater
77

 
82

 
70

 
257

 
241

Jackups
67

 
73

 
77

 
212

 
232

Reimbursable
13

 
12

 
28

 
40

 
52

 
$
331

 
$
350

 
$
293

 
$
1,033

 
$
851



 
DRILLING COSTS
 
Three Months Ended
 
Nine Months Ended
(In millions)
June 30,
2015
 
March 31,
2015
 
June 30,
2014
 
June 30,
2015
 
June 30,
2014
Ultra-Deepwater
$
75

 
$
68

 
$
44

 
$
206

 
$
125

Deepwater
29

 
32

 
52

 
102

 
157

Jackups
29

 
30

 
32

 
91

 
102

Reimbursable
9

 
9

 
23

 
30

 
41

Other
1

 
1

 
1

 
3

 
5

 
$
143

 
$
140

 
$
152

 
$
432

 
$
430




7


ATWOOD OCEANICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)
June 30,
2015
 
September 30,
2014
 
(Unaudited)
 
 
ASSETS
 
 
 
Cash
$
74,504

 
$
80,080

Accounts receivable
257,320

 
242,684

Income tax receivable
10,128

 
6,260

Inventories of materials and supplies
137,949

 
132,368

Prepaid expenses, deferred costs and other current assets
20,857

 
36,415

Total current assets
500,758

 
497,807

 
 
 
 
Property and equipment, net
4,188,794

 
3,967,028

 
 
 
 
Other receivables
11,831

 
11,831

Deferred income taxes
165

 
589

Deferred costs and other assets
22,697

 
29,973

Total assets
$
4,724,245

 
$
4,507,228

 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
Accounts payable
$
85,650

 
$
94,315

Accrued liabilities
19,765

 
19,158

Dividends payable
16,163

 
16,090

Short-term debt
—

 
11,885

Interest payable
18,261

 
8,099

Income tax payable
8,784

 
14,234

Deferred credits and other liabilities
4,333

 
3,596

Total current liabilities
152,956

 
167,377

 
 
 
 
Long-term debt
1,716,247

 
1,742,122

Deferred income taxes
835

 
783

Deferred credits
3,320

 
4,100

Other
37,909

 
37,322

Total long-term liabilities
1,758,311

 
1,784,327

 
 
 
 
Commitments and contingencies
 
 
 
 
 
 
 
Preferred stock, no par value, 1,000 shares authorized, none outstanding
—

 
—

Common stock, $1.00 par value, 180,000 shares authorized with 64,653 issued and outstanding at June 30, 2015 and 180,000 shares authorized and 64,362 shares issued and outstanding at September 30, 2014
64,653

 
64,362

Paid-in capital
209,541

 
201,464

Retained earnings
2,535,619

 
2,286,137

Accumulated other comprehensive income
3,165

 
3,561

Total shareholders' equity
2,812,978

 
2,555,524

Total liabilities and shareholders' equity
$
4,724,245

 
$
4,507,228



8


ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH

 
Nine Months Ended June 30,
(In thousands)
2015
 
2014
Cash flows from operating activities:
 
 
 
Net income
$
281,879

 
$
228,622

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation
129,637

 
107,376

Amortization
5,179

 
5,876

Provision for doubtful accounts and inventory obsolescence
3,337

 
1,905

Deferred income tax benefit
(3,453
)
 
(649
)
Share-based compensation expense
9,277

 
10,924

Asset impairment
60,777

 
—

(Gain) loss on sale of assets
15,362

 
(34,072
)
Changes in assets and liabilities:
 
 
 
Accounts receivable
(17,917
)
 
(5,069
)
Income tax receivable
(3,868
)
 
(1,425
)
Inventories of materials and supplies
(16,917
)
 
(8,816
)
Prepaid expenses, deferred costs and other current assets
13,274

 
14,100

Deferred costs and other assets
(341
)
 
(10,512
)
Accounts payable
(17,511
)
 
(11,303
)
Accrued liabilities
24,049

 
15,118

Income tax payable
(5,450
)
 
6,032

Deferred credits and other liabilities
6,291

 
21,141

Net cash provided by operating activities
483,605

 
339,248

 
 
 
 
Cash flows from investing activities:
 
 
 
Capital expenditures
(420,077
)
 
(564,119
)
Proceeds from sale of assets
2,339

 
61,516

Net cash used in investing activities
(417,738
)
 
(502,603
)
 
 
 
 
Cash flows from financing activities:
 
 
 
Borrowings from credit facilities
225,000

 
370,000

Repayments on credit facilities
(250,000
)
 
(165,000
)
Repayments on short-term debt, net
(11,885
)
 
(8,071
)
Dividends paid
(32,397
)
 
—

Proceeds from exercise of stock options
1,279

 
3,468

Debt issuance costs paid
(3,440
)
 
(6,650
)
Net cash (used) provided by financing activities
(71,443
)
 
193,747

Net increase (decrease) in cash and cash equivalents
(5,576
)
 
30,392

Cash and cash equivalents, at beginning of period
80,080

 
88,770

Cash and cash equivalents, at end of period
$
74,504

 
$
119,162

 
 
 
 
Non-cash activities:
 
 
 
Increase in accounts payable and accrued liabilities related to capital expenditures
$
(15,501
)
 
$
(13,573
)


9


Atwood Oceanics, Inc. is a leading offshore drilling company engaged in the drilling and completion of exploration and development wells for the global oil and gas industry. The Company currently owns 12 mobile offshore drilling units and is constructing two ultra-deepwater drillships. The Company was founded in 1968 and is headquartered in Houston, Texas. Atwood Oceanics, Inc. common stock is traded on the New York Stock Exchange under the symbol "ATW."

As part of our ongoing commitment to our shareholders, Atwood Oceanics uses a variety of Social Networks sites to disseminate company information. For a full list of the official Social Media pages for Atwood Oceanics, please visit the Social Media Disclaimer page of our IR site at: http://ir.atwd.com/GenPage.aspx?IID=4010374&GKP=210376.

Conference Call

The Company has scheduled a conference call and webcast related to its third quarter 2015 results on Thursday, July 30, 2015, at 9:00 a.m. CDT. Interested parties are invited to listen to the call by dialing 1-800-894-5910, or internationally 1-785-424-1052, Conference ID - 36982. Interested parties may also listen over the Internet through a link posted in the Investor Relations section of the Company's Web site at http://services.choruscall.com/links/atw150730

A replay of the conference call will be available on the Company's Web site following the end of the live call.

Contact: Mark W. Smith
Senior Vice President & CFO
(281) 749-7840


10
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