FOR IMMEDIATE RELEASE - EARNINGS

HOUSTON, August 1, 2016 -- Atwood Oceanics, Inc. (NYSE: ATW) ("Company"), announced today that it had earned net income of $99.5 million or $1.53 per diluted share, on revenues of $227.8 million for the quarter ended June 30, 2016 compared to $122.4 million or $1.89 per diluted share, on revenues of $296.4 million for the quarter ended March 31, 2016 and compared to 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. For the nine months ended June 30, 2016, the Company earned net income of $261.0 million or $4.02 per diluted share, on revenues of $832.0 million compared to net income of $281.9 million or $4.33 per diluted share, on revenues of $1.0 billion for the nine months ended June 30, 2015.

During the three months ended June 30, 2016, we repurchased, through open market transactions, $145.8 million aggregate principal amount of our Senior Notes for $97.4 million, including $2.4 million of accrued interest, representing an average discount of 34.8%. As a result of the repurchases, we recognized a gain on debt retirement, net of the related debt issuance costs and premium of $0.3 million, of $50.5 million ($35.7 million, net of tax, or $0.55 per diluted share) in Gains on extinguishment of debt on our Condensed Consolidated Statements of Operations for the three ended June 30, 2016.

During the three months ended March 31, 2016, we repurchased, through open market transactions, $13.5 million aggregate principal of our Senior Notes at an aggregate cost of $5.1 million, including a minimal amount of accrued interest, representing an average discount of 62.2%. As a result of the repurchases, we recognized a gain on debt retirement, net of the related debt issuance costs, of $8.4 million ($8.4 million, net of tax, or $0.13 per diluted share) in Gains on extinguishment of debt on the Condensed Consolidated Statements of Operations for the three and six months ended March 31, 2016.

On July 25, 2016, following consummation of our modified "Dutch Auction" tender offer (the "Offer"), we acquired $42.0 million aggregate principal amount of the Senior Notes. Including the purchase price for the Senior Notes, which totaled $31.5 million, and accrued interest payable on the Senior Notes acquired and related fees, the total cost of the Offer was $33.0 million. The purchase price in the Offer represented a discount to the principal amount of the Senior Notes of 25.0%.

These repurchases, in the three month periods ended March 31, 2016 and June 30, 2016 and in July 2016, allowed us to reduce our outstanding indebtedness and related interest expense at a significant discount to the face value of our Senior Notes. The gain associated with the repurchases is subject to tax and will increase our effective tax rate. However, due to the availability of operating loss carry-forwards the actual cash tax impact will be minimal. The repurchases were made using available cash balances. Following these repurchases, the Company has $448.7 million Senior Notes outstanding.

  For the Three Months Ended
  (Unaudited)
(In thousands, except per share amounts) June 30,
 2016
  March 31,
 2016
  June 30,
 2015
Revenues $ 227,797     $ 296,351     $ 330,562  
Income before Income Taxes 120,116     136,426     122,539  
Provision for Income Taxes (20,611 )   (13,989 )   (9,547 )
Net Income $ 99,505     $ 122,437     $ 112,992  
           
Earnings per Common Share -          
Basic $ 1.54     $ 1.89     $ 1.75  
Diluted $ 1.53     $ 1.89     $ 1.73  

      Nine Months Ended
      (Unaudited)
(In thousands, except per share amounts)     June 30,
 2016
  June 30,
 2015
Revenues     $ 831,967     $ 1,032,675  
Income before Income Taxes     306,837     312,855  
Provision for Income Taxes     (45,814 )   (30,976 )
Net Income     $ 261,023     $ 281,879  
           
Earnings per Common Share -          
Basic     $ 4.03     $ 4.37  
Diluted     $ 4.02     $ 4.33  

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) 2016   2015   2016   2015
REVENUES:              
Contract drilling $ 217,818     $ 317,531     $ 794,979     $ 992,913  
Revenues related to reimbursable expenses 9,979     13,031     36,988     39,762  
Total revenues 227,797     330,562     831,967     1,032,675  
               
COSTS AND EXPENSES:              
Contract drilling 80,524     134,258     301,094     401,847  
Reimbursable expenses 5,489     9,066     22,898     29,634  
Depreciation 41,084     42,534     124,964     129,637  
General and administrative 12,028     10,473     38,693     42,619  
Asset impairment (659 )   -     64,773     60,777  
Loss on sale of assets -     27     77     15,362  
Other, net 16     -     (1,044 )   -  
  138,482     196,358     551,455     679,876  
               
OPERATING INCOME 89,315     134,204     280,512     352,799  
               
OTHER INCOME (EXPENSE):              
Interest expense, net of capitalized interest (19,674 )   (11,677 )   (50,533 )   (40,028 )
Interest income 9     12     19     84  
Gains on extinguishment of debt

 
50,466     -     58,863     -  
Other income -     -     17,976     -  
  30,801     (11,665 )   26,325     (39,944 )
               
INCOME BEFORE INCOME TAXES 120,116     122,539     306,837     312,855  
PROVISION FOR INCOME TAXES 20,611     9,547     45,814     30,976  
NET INCOME $ 99,505     $ 112,992     $ 261,023     $ 281,879  
               
EARNINGS PER COMMON SHARE (NOTE 2):              
Basic $ 1.54     $ 1.75     $ 4.03     $ 4.37  
Diluted $ 1.53     $ 1.73     $ 4.02     $ 4.33  
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (NOTE 2):              
Basic 64,795     64,649     64,750     64,557  
Diluted 64,847     65,130     64,852     65,063  

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

  REVENUES
  Three Months Ended   Nine Months Ended
(In millions) June 30,
 2016
  March 31,
 2016
  June 30,
 2015
  June 30,
 2016
  June 30,
 2015
Ultra-Deepwater $ 182     $ 189     $ 174     $ 553     $ 524  
Deepwater -     59     77     131     257  
Jackups 36     34     67     111     212  
Reimbursable 10     14     13     37     40  
  $ 228     $ 296     $ 331     $ 832     $ 1,033  

  DRILLING COSTS
  Three Months Ended   Nine Months Ended
(In millions) June 30,
 2016
  March 31,
 2016
  June 30,
 2015
  June 30,
 2016
  June 30,
 2015
Ultra-Deepwater $ 54     $ 54     $ 75     $ 168     $ 206  
Deepwater 10     19     29     71     102  
Jackups 16     19     29     62     91  
Reimbursable 5     9     9     23     30  
Other 1     (2 )   1     -     3  
  $ 86     $ 99     $ 143     $ 324     $ 432  

ATWOOD OCEANICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value) June 30,
 2016
  September 30,
 2015
  (Unaudited)    
ASSETS      
Cash $ 198,974     $ 113,983  
Accounts receivable, net 166,534     311,514  
Income tax receivable 8,194     8,705  
Inventories of materials and supplies, net 113,161     137,998  
Prepaid expenses, deferred costs and other current assets 10,040     33,735  
Total current assets 496,903     605,935  
       
Property and equipment, net 4,198,069     4,172,132  
       
Other receivables 11,831     11,831  
Deferred income taxes 150     150  
Deferred costs and other assets 8,174     11,285  
Total assets $ 4,715,127     $ 4,801,333  
       
LIABILITIES AND SHAREHOLDERS' EQUITY      
Accounts payable $ 43,252     $ 70,161  
Accrued liabilities 12,496     23,572  
Dividends payable -     16,164  
Interest payable 15,506     7,704  
Income tax payable 13,530     13,906  
Deferred credits and other liabilities 1,486     3,941  
Total current liabilities 86,270     135,448  
       
Long-term debt 1,374,780     1,678,268  
Deferred income taxes 1,148     1,658  
Deferred credits -     800  
Other 30,409     37,989  
Total long-term liabilities 1,406,337     1,718,715  
       
Commitments and contingencies (Note 8)      
       
Preferred stock, no par value, 1,000 shares authorized, none outstanding -     -  
Common stock, $1.00 par value, 180,000 shares authorized with 64,798 issued and outstanding as of June 30, 2016 and 180,000 shares authorized and 64,654 shares issued and outstanding as of September 30, 2015 64,798     64,654  
Paid-in capital 235,043     213,096  
Retained earnings 2,925,589     2,670,148  
Accumulated other comprehensive income (2,910 )   (728 )
Total shareholders' equity 3,222,520     2,947,170  
Total liabilities and shareholders' equity $ 4,715,127     $ 4,801,333  

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

  Nine Months Ended June 30,
(In thousands) 2016   2015
Cash flows from operating activities:      
Net income $ 261,023     $ 281,879  
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation 124,964     129,637  
Amortization 2,407     5,179  
Provision for doubtful accounts 4,619     3,337  
Deferred income tax benefit (378 )   (3,453 )
Share-based compensation expense 8,224     9,277  
Asset impairment 64,753     60,777  
Loss on sale of assets (71 )   15,362  
(Gain) on extinguishment of debt (58,863 )   -  
Other, net (1,137 )   -  
Changes in assets and liabilities:      
Accounts receivable 121,964     (17,917 )
Income tax receivable 511     (3,868 )
Inventories of materials and supplies 12,988     (16,917 )
Prepaid expenses, deferred costs and other current assets 19,377     13,274  
Deferred costs and other assets (1,019 )   (341 )
Accounts payable (33,674 )   (17,511 )
Accrued liabilities (3,274 )   24,049  
Income tax payable (376 )   (5,450 )
Deferred credits and other liabilities (6,623 )   6,291  
Net cash provided by operating activities 515,415     483,605  
       
Cash flows from investing activities:      
Capital expenditures (198,248 )   (420,077 )
Proceeds from sale of assets 20,813     2,339  
Net cash used in investing activities (177,435 )   (417,738 )
       
Cash flows from financing activities:      
Proceeds from borrowing of long-term debt 45,000     225,000  
Principal repayments on long-term debt (290,110 )   (250,000 )
Repayments on short-term debt, net -     (11,885 )
Debt issuance costs paid -     -  
Dividends paid (21,746 )   (32,397 )
Proceeds (payments) related to exercise of stock options (930 )   1,279  
Windfall tax benefits from share-based payment arrangements

 
14,797     -  
Net cash used by financing activities (252,989 )   (68,003 )
Net increase in cash and cash equivalents 84,991     (2,136 )
Cash and cash equivalents, at beginning of period 113,983     80,080  
Cash and cash equivalents, at end of period $ 198,974     $ 77,944  
       
Non-cash activities:      
Increase (decrease) in accounts payable and accrued liabilities related to capital expenditures $ 7,902     $ (15,501 )

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 10 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 third quarter 2016 results on Tuesday, August 2, 2016, at 9:00 A.M. CDT (10:00 A.M. EDT). Interested parties are invited to listen to the call by dialing 1-800-862-9098, or internationally 1-785-424-1051, Conference ID - ATWOOD, Password 62456. 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#2032429
Atwood Oceanics (NYSE:ATW)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Atwood Oceanics Charts.
Atwood Oceanics (NYSE:ATW)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Atwood Oceanics Charts.