Atwood Oceanics Announces Fiscal 2016 First Quarter Earnings
February 02 2016 - 4:36PM
Houston, Texas
February 2, 2016
FOR IMMEDIATE RELEASE -
EARNINGS
HOUSTON, February
2, 2016 -- Atwood Oceanics, Inc. (NYSE: ATW) ("Company"),
announced today that it had earned net income of $39.1 million or
$0.60 per diluted share, on revenues of $307.8 million for the
quarter ended December 31, 2015, compared to net income of
$150.7 million or $2.32 per diluted share on revenues of $363.2
million for the quarter ended September 30, 2015 and compared
to net income of $46.2 million or $0.71 per diluted share, on
revenues of $351.7 million for the quarter ended December 31,
2014.
During the quarter ended December
31, 2015, the Company recorded a non-cash impairment charge of
approximately $64.7 million ($64.7 million, net of tax, or $1.00
per diluted share) related to the Atwood
Falcon. During the quarter ended December 31, 2014, the
Company recorded a non-cash impairment charge of approximately
$60.8 million ($56.1 million, net of tax, or $0.86 per diluted
share) related to the Atwood Hunter.
Additionally, during the quarter ended December 31, 2015, we
recorded other income of approximately $18 million ($18 million,
net of tax, or $0.28 per diluted share) for expected insurance
recoveries related to cyclone damage to the Atwood
Osprey.
|
For the Three Months Ended |
|
(Unaudited) |
(In thousands, except per share
amounts) |
December 31,
2015 |
|
September 30,
2015 |
|
December 31,
2014 |
Revenues |
$ |
307,819 |
|
|
$ |
363,176 |
|
|
$ |
351,726 |
|
Income before Income Taxes |
50,295 |
|
|
166,115 |
|
|
55,340 |
|
Provision for
Income Taxes |
(11,214 |
) |
|
(15,421 |
) |
|
(9,122 |
) |
Net Income |
$ |
39,081 |
|
|
$ |
150,694 |
|
|
$ |
46,218 |
|
|
|
|
|
|
|
Earnings per Common Share - |
|
|
|
|
|
Basic |
$ |
0.60 |
|
|
$ |
2.33 |
|
|
$ |
0.72 |
|
Diluted |
$ |
0.60 |
|
|
$ |
2.32 |
|
|
$ |
0.71 |
|
ATWOOD OCEANICS,
INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
Three Months Ended December 31, |
(In thousands, except per share
amounts) |
2015 |
|
2014 |
REVENUES: |
|
|
|
Contract drilling |
$ |
294,615 |
|
|
$ |
336,761 |
|
Revenues
related to reimbursable expenses |
13,204 |
|
|
14,965 |
|
Total revenues |
307,819 |
|
|
351,726 |
|
|
|
|
|
COSTS AND
EXPENSES: |
|
|
|
Contract
drilling |
130,652 |
|
|
136,465 |
|
Reimbursable expenses |
8,286 |
|
|
11,907 |
|
Depreciation |
42,827 |
|
|
44,575 |
|
General and administrative |
15,177 |
|
|
17,409 |
|
Asset
impairment |
64,724 |
|
|
60,777 |
|
Loss on sale of equipment |
77 |
|
|
9,806 |
|
|
261,743 |
|
|
280,939 |
|
|
|
|
|
OPERATING INCOME |
$ |
46,076 |
|
|
$ |
70,787 |
|
|
|
|
|
OTHER INCOME (EXPENSE): |
|
|
|
Interest expense, net of
capitalized interest |
(13,761 |
) |
|
(15,504 |
) |
Interest
income |
4 |
|
|
57 |
|
Other income |
17,976 |
|
|
- |
|
|
4,219 |
|
|
(15,447 |
) |
|
|
|
|
INCOME BEFORE INCOME TAXES |
50,295 |
|
|
55,340 |
|
PROVISION FOR
INCOME TAXES |
11,214 |
|
|
9,122 |
|
NET INCOME |
$ |
39,081 |
|
|
$ |
46,218 |
|
|
|
|
|
EARNINGS PER COMMON SHARE: |
|
|
|
Basic |
$ |
0.60 |
|
|
$ |
0.72 |
|
Diluted |
$ |
0.60 |
|
|
$ |
0.71 |
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING: |
|
|
|
Basic |
64,765 |
|
|
64,405 |
|
Diluted |
64,921 |
|
|
65,015 |
|
ATWOOD OCEANICS,
INC. AND SUBSIDIARIES
UNAUDITED ANALYSIS OF REVENUES AND DRILLING
COSTS
|
REVENUES |
|
Three Months Ended |
(In millions) |
December 31,
2015 |
|
September 30,
2015 |
|
December 31,
2014 |
Ultra-Deepwater |
$ |
182 |
|
|
$ |
197 |
|
|
$ |
167 |
|
Deepwater |
72 |
|
|
79 |
|
|
98 |
|
Jackups |
41 |
|
|
73 |
|
|
72 |
|
Reimbursable |
13 |
|
|
14 |
|
|
15 |
|
|
$ |
308 |
|
|
$ |
363 |
|
|
$ |
352 |
|
|
DRILLING COSTS |
|
Three Months Ended |
(In millions) |
December 31,
2015 |
|
September 30,
2015 |
|
December 31,
2014 |
Ultra-Deepwater |
$ |
61 |
|
|
$ |
58 |
|
|
$ |
63 |
|
Deepwater |
43 |
|
|
25 |
|
|
41 |
|
Jackups |
26 |
|
|
35 |
|
|
31 |
|
Reimbursable |
8 |
|
|
9 |
|
|
12 |
|
Other |
1 |
|
|
- |
|
|
1 |
|
|
$ |
139 |
|
|
$ |
127 |
|
|
$ |
148 |
|
ATWOOD OCEANICS,
INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par
value) |
December 31,
2015 |
|
September 30,
2015 |
|
(Unaudited) |
|
|
ASSETS |
|
|
|
Cash |
$ |
115,669 |
|
|
$ |
113,983 |
|
Accounts
receivable, net |
249,874 |
|
|
311,514 |
|
Income tax receivable |
9,534 |
|
|
8,705 |
|
Inventories of
materials and supplies, net |
117,703 |
|
|
137,998 |
|
Prepaid expenses, deferred costs
and other current assets |
24,461 |
|
|
33,735 |
|
Total current
assets |
517,241 |
|
|
605,935 |
|
|
|
|
|
Property and
equipment, net |
4,208,091 |
|
|
4,172,132 |
|
|
|
|
|
Other
receivables |
11,831 |
|
|
11,831 |
|
Deferred income taxes |
150 |
|
|
150 |
|
Deferred costs
and other assets |
11,133 |
|
|
11,285 |
|
Total
assets |
$ |
4,748,446 |
|
|
$ |
4,801,333 |
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
Accounts
payable |
$ |
55,313 |
|
|
$ |
70,161 |
|
Accrued liabilities |
20,528 |
|
|
23,572 |
|
Dividends
payable |
4,858 |
|
|
16,164 |
|
Interest payable |
19,042 |
|
|
7,704 |
|
Income tax
payable |
13,264 |
|
|
13,906 |
|
Deferred credits and other
liabilities |
3,284 |
|
|
3,941 |
|
Total current
liabilities |
116,289 |
|
|
135,448 |
|
|
|
|
|
Long-term
debt |
1,608,399 |
|
|
1,678,268 |
|
Deferred income taxes |
988 |
|
|
1,658 |
|
Deferred
credits |
309 |
|
|
800 |
|
Other |
38,922 |
|
|
37,989 |
|
Total long-term
liabilities |
1,648,618 |
|
|
1,718,715 |
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Preferred
stock, no par value, 1,000 shares authorized, none outstanding |
- |
|
|
- |
|
Common stock |
64,768 |
|
|
64,654 |
|
Paid-in
capital |
214,754 |
|
|
213,096 |
|
Retained earnings |
2,704,219 |
|
|
2,670,148 |
|
Accumulated
other comprehensive loss |
(202 |
) |
|
(728 |
) |
Total shareholders' equity |
2,983,539 |
|
|
2,947,170 |
|
Total liabilities and shareholders' equity |
$ |
4,748,446 |
|
|
$ |
4,801,333 |
|
ATWOOD OCEANICS,
INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
|
Three Months Ended December 31, |
(In thousands) |
2015 |
|
2014 |
Cash flows from operating activities: |
|
|
|
Net income |
$ |
39,081 |
|
|
$ |
46,218 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
Depreciation |
42,827 |
|
|
44,575 |
|
Amortization |
1,250 |
|
|
2,504 |
|
Provision for doubtful
accounts |
757 |
|
|
- |
|
Deferred income
tax benefit |
(714 |
) |
|
(3,380 |
) |
Share-based compensation
expense |
2,371 |
|
|
4,024 |
|
Asset
impairment |
64,724 |
|
|
60,777 |
|
Loss on sale of assets |
77 |
|
|
9,806 |
|
Changes in
assets and liabilities: |
|
|
|
Accounts receivable |
60,883 |
|
|
27,965 |
|
Income tax
receivable |
(829 |
) |
|
(717 |
) |
Inventories of materials and
supplies |
1,628 |
|
|
(6,771 |
) |
Prepaid
expenses, deferred costs and other current assets |
7,462 |
|
|
5,095 |
|
Deferred costs and other
assets |
(1,050 |
) |
|
62 |
|
Accounts
payable |
(8,220 |
) |
|
(14,248 |
) |
Accrued liabilities |
8,570 |
|
|
14,866 |
|
Income tax
payable |
(642 |
) |
|
(1,333 |
) |
Deferred credits and other
liabilities |
1,973 |
|
|
5,263 |
|
Net cash
provided by operating activities |
220,148 |
|
|
194,706 |
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
Capital expenditures |
(131,547 |
) |
|
(149,042 |
) |
Proceeds from
sale of assets |
- |
|
|
1,348 |
|
Net cash used in investing
activities |
(131,547 |
) |
|
(147,694 |
) |
|
|
|
|
Cash flows from
financing activities: |
|
|
|
Proceeds from
issuance of long-term debt |
45,000 |
|
|
- |
|
Principal payments on long-term
debt |
(115,000 |
) |
|
- |
|
Repayments on
short-term debt, net |
- |
|
|
(5,931 |
) |
Dividends paid |
(16,316 |
) |
|
- |
|
Proceeds
(payments) related to exercise of stock options |
(599 |
) |
|
784 |
|
Debt issuance costs paid |
- |
|
|
(142 |
) |
Net cash used
by financing activities |
(86,915 |
) |
|
(5,289 |
) |
Net increase in cash and cash
equivalents |
1,686 |
|
|
41,723 |
|
Cash and cash
equivalents, at beginning of period |
113,983 |
|
|
80,080 |
|
Cash and cash equivalents, at end
of period |
$ |
115,669 |
|
|
$ |
121,803 |
|
|
|
|
|
Non-cash
activities: |
|
|
|
Increase
decrease in accrued liabilities relate to capital expenditures |
$ |
10,530 |
|
|
$ |
(4,525 |
) |
Change in dividends payable |
4,858 |
|
|
- |
|
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 11 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." For more information about the
Company, please visit www.atwd.com.
Conference
Call
The Company has scheduled a
conference call and webcast related to its first quarter 2016
results on Wednesday, February 3, 2016, at 10:00 A.M EDT.
Interested parties are invited to listen to the call by dialing
1-800-894-5910, or internationally 1-785-424-1052, Conference ID -
Atwood, Password 46118. Interested parties may also listen over the
Internet through a link posted in the Investor Relations section of
the Company's Web site.
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 and Chief Financial Officer
(281) 749-7840
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Atwood Oceanics, Inc. via Globenewswire
HUG#1983253
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