Attached files
| file | filename |
|---|---|
| 8-K - ROWAN COMPANIES PLC | v227135_8k.htm |
| EX-99.2 - ROWAN COMPANIES PLC | v227135_ex99-2.htm |
Exhibit 99.1
Rowan Companies Inc. and Subsidiaries
Unaudited Pro Forma Consolidated Financial Information
On June 22, 2011, Rowan Companies, Inc. (“Rowan” and, together with its consolidated subsidiaries, the “Company”) completed the sale of all of the issued and outstanding common stock of LeTourneau Technologies, Inc. (“LeTourneau”) pursuant to a stock purchase agreement dated May 13, 2011 (the “Purchase Agreement”), between Rowan, as seller, and Joy Global Inc., as buyer. The purchase price was $1.1 billion in cash, subject, however, to certain post-closing working capital and other adjustments as specified in the Purchase Agreement.
The following unaudited pro forma consolidated financial information was derived from (i) the unaudited historical financial statements of the Company as of March 31, 2011, and for the three months ended March 31, 2011 and 2010, and (ii) the audited consolidated financial statements of the Company for the years ended December 31, 2010, 2009 and 2008. The unaudited pro forma consolidated financial information contained herein should be read in conjunction with the historical quarterly and annual consolidated financial statements of the Company from which the pro forma financial information was derived.
The unaudited pro forma consolidated financial information as of March 31, 2011, gives effect to the sale of LeTourneau as though the sale occurred on March 31, 2011, and the unaudited pro forma consolidated financial information for the three months ended March 31, 2011 and 2010, and for the years ended December 31, 2010, 2009, and 2008 gives effect to the sale of LeTourneau as though the transaction occurred on January 1, 2008, which is the beginning of the earliest period presented.
Rowan Companies, Inc. and Subsidiaries
Unaudited Pro Forma Condensed Consolidated Balance Sheet at March 31, 2011
Assuming sale of LeTourneau occurred on March 31, 2011
(in thousands)
|
Pro forma adjustments
|
||||||||||||||||
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Deduct:
|
||||||||||||||||
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Balances
|
||||||||||||||||
|
March 31, 2011
|
attributable to
|
Other pro forma
|
March 31, 2011
|
|||||||||||||
|
Historical
|
LeTourneau
|
adjustments
|
Pro forma
|
|||||||||||||
|
Current assets:
|
||||||||||||||||
|
Cash and cash equivalents
|
$ | 189,654 | $ | (4,234 | ) | $ | 1,028,000 | (a) | $ | 1,213,420 | ||||||
|
Receivables - trade and other
|
382,701 | (97,519 | ) | - | 285,182 | |||||||||||
|
Inventories
|
395,964 | (395,964 | ) | - | - | |||||||||||
|
Prepaid expenses and other current assets
|
61,828 | (26,105 | ) | 27,716 | (b) | 63,439 | ||||||||||
|
Deferred tax assets, net
|
36,174 | (27,782 | ) | - | 8,392 | |||||||||||
|
Total current assets
|
1,066,321 | (551,604 | ) | 1,055,716 | 1,570,433 | |||||||||||
|
Property, plant and equipment - net
|
5,092,220 | (138,598 | ) | - | 4,953,622 | |||||||||||
|
Other assets
|
99,452 | (1,976 | ) | - | 97,476 | |||||||||||
|
Total assets
|
$ | 6,257,993 | $ | (692,178 | ) | $ | 1,055,716 | $ | 6,621,531 | |||||||
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Current liabilities:
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||||||||||||||||
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Current maturities of long-term debt
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$ | 52,149 | $ | - | $ | - | $ | 52,149 | ||||||||
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Accounts payable - trade
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147,186 | (66,266 | ) | - | 80,920 | |||||||||||
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Deferred revenues
|
169,752 | (160,364 | ) | 20,122 | (b) | 29,510 | ||||||||||
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Billings in excess of costs and estimated profits on uncompleted contracts
|
19,404 | (19,404 | ) | - | - | |||||||||||
|
Accrued income taxes
|
12,272 | - | 169,000 | (c) | 181,272 | |||||||||||
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Other current liabilities
|
123,107 | (59,642 | ) | - | 63,465 | |||||||||||
|
Total current liabilities
|
523,870 | (305,676 | ) | 189,122 | 407,316 | |||||||||||
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Long-term debt
|
1,121,585 | - | - | 1,121,585 | ||||||||||||
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Deferred income taxes - net
|
551,119 | (15,394 | ) | 63,000 | (c) | 598,725 | ||||||||||
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Other liabilities
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264,229 | - | - | 264,229 | ||||||||||||
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Total stockholders' equity
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3,797,190 | (371,108 | )(d) | 803,594 | (d) | 4,229,676 | ||||||||||
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Total liabilities and stockholders' equity
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$ | 6,257,993 | $ | (692,178 | ) | $ | 1,055,716 | $ | 6,621,531 | |||||||
(a) Estimated net cash proceeds from sale, after estimated working capital adjustments of $54 million, estimated employee-related costs of $8 million, and estimated transaction costs of $10 million.
(b) Assets and liabilities transferred from LeTourneau to the Company in connection with the transfer to the Company of an equipment purchase agreement between LeTourneau, as seller, and a customer, under the terms of the Purchase Agreement.
(c) Estimated income tax effects of the gain on sale of LeTourneau.
(d) Estimated after-tax gain on sale, which totals $432 million.
Rowan Companies, Inc. and Subsidiaries
Unaudited Pro Forma Condensed Consolidated Income Statement
For the Three Months Ended March 31, 2011
Assuming sale of LeTourneau occurred on January 1, 2008
(in thousands)
|
Three months ended March 31, 2011
|
||||||||||||
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Deduct: Operations
|
||||||||||||
|
attributable to
|
||||||||||||
|
Historical
|
LeTourneau
|
Pro Forma
|
||||||||||
|
REVENUES
|
$ | 364,281 | $ | (114,246 | ) | $ | 250,035 | |||||
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COSTS AND EXPENSES:
|
||||||||||||
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Direct operating costs (excluding items below)
|
241,921 | (98,562 | ) | 143,359 | ||||||||
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Depreciation and amortization
|
49,366 | (3,484 | ) | 45,882 | ||||||||
|
Selling, general and administrative
|
32,392 | (11,422 | ) | 20,970 | ||||||||
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Gain on disposals of property and equipment
|
(2,014 | ) | 199 | (1,815 | ) | |||||||
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Total costs and expenses
|
321,665 | (113,269 | ) | 208,396 | ||||||||
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INCOME FROM OPERATIONS
|
42,616 | (977 | ) | 41,639 | ||||||||
|
OTHER INCOME/EXPENSE:
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||||||||||||
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Interest expense, net of interest capitalized
|
(5,319 | ) | - | (5,319 | ) | |||||||
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Interest income
|
146 | (117 | ) | 29 | ||||||||
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Other - net
|
(14 | ) | (1,069 | ) | (1,083 | ) | ||||||
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Total other income/expense - net
|
(5,187 | ) | (1,186 | ) | (6,373 | ) | ||||||
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INCOME BEFORE INCOME TAXES
|
37,429 | (2,163 | ) | 35,266 | ||||||||
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Provision for income taxes
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5,357 | (711 | ) | 4,646 | ||||||||
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NET INCOME
|
$ | 32,072 | $ | (1,452 | ) | $ | 30,620 | |||||
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PER SHARE AMOUNTS:
|
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Net income - basic
|
$ | 0.26 | $ | 0.24 | ||||||||
|
Net income - diluted
|
$ | 0.25 | $ | 0.24 | ||||||||
|
Shares - basic
|
125,431 | 125,431 | ||||||||||
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Shares - diluted
|
127,188 | 127,188 | ||||||||||
Rowan Companies, Inc. and Subsidiaries
Unaudited Pro Forma Condensed Consolidated Income Statement
For the Three Months Ended March 31, 2010
Assuming sale of LeTourneau occurred on January 1, 2008
(in thousands)
|
Three months ended March 31, 2010
|
||||||||||||
|
Deduct: Operations
|
||||||||||||
|
attributable to
|
||||||||||||
|
Historical
|
LeTourneau
|
Pro Forma
|
||||||||||
|
REVENUES
|
$ | 432,405 | $ | (101,421 | ) | $ | 330,984 | |||||
|
COSTS AND EXPENSES:
|
||||||||||||
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Direct operating costs (excluding items below)
|
221,117 | (84,570 | ) | 136,547 | ||||||||
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Depreciation and amortization
|
45,492 | (3,992 | ) | 41,500 | ||||||||
|
Selling, general and administrative
|
25,797 | (9,456 | ) | 16,341 | ||||||||
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Gain on disposals of property and equipment
|
(129 | ) | (171 | ) | (300 | ) | ||||||
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Material charge - manufacturing inventories
|
42,024 | (42,024 | ) | - | ||||||||
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Total costs and expenses
|
334,301 | (140,213 | ) | 194,088 | ||||||||
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INCOME FROM OPERATIONS
|
98,104 | 38,792 | 136,896 | |||||||||
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OTHER INCOME/EXPENSE:
|
||||||||||||
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Interest expense, net of interest capitalized
|
(5,679 | ) | - | (5,679 | ) | |||||||
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Interest income
|
181 | (20 | ) | 161 | ||||||||
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Other - net
|
1,545 | (1,529 | ) | 16 | ||||||||
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Total other income/expense - net
|
(3,953 | ) | (1,549 | ) | (5,502 | ) | ||||||
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INCOME BEFORE INCOME TAXES
|
94,151 | 37,243 | 131,394 | |||||||||
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Provision for income taxes
|
29,528 | 11,611 | 41,139 | |||||||||
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NET INCOME
|
$ | 64,623 | $ | 25,632 | $ | 90,255 | ||||||
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PER SHARE AMOUNTS:
|
||||||||||||
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Net income - basic
|
$ | 0.57 | $ | 0.80 | ||||||||
|
Net income - diluted
|
$ | 0.56 | $ | 0.79 | ||||||||
|
Shares - basic
|
112,857 | 112,857 | ||||||||||
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Shares - diluted
|
114,467 | 114,467 | ||||||||||
Rowan Companies, Inc. and Subsidiaries
Unaudited Pro Forma Condensed Consolidated Income Statement for the year ended December 31, 2010
Assuming sale of LeTourneau occurred on January 1, 2008
(in thousands)
|
Year ended December 31, 2010
|
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|
Deduct: Operations
|
||||||||||||
|
attributable to
|
||||||||||||
|
Historical
|
LeTourneau
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Pro Forma
|
||||||||||
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REVENUES
|
$ | 1,819,207 | $ | (610,441 | ) | $ | 1,208,766 | |||||
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COSTS AND EXPENSES:
|
||||||||||||
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Direct operating costs (excluding items below)
|
1,066,290 | (512,384 | ) | 553,906 | ||||||||
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Depreciation and amortization
|
186,563 | (16,378 | ) | 170,185 | ||||||||
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Selling, general and administrative
|
132,586 | (47,550 | ) | 85,036 | ||||||||
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Loss on disposals of property and equipment
|
788 | (168 | ) | 620 | ||||||||
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Material charge - manufacturing inventories
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42,024 | (42,024 | ) | - | ||||||||
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Total costs and expenses
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1,428,251 | (618,504 | ) | 809,747 | ||||||||
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INCOME FROM OPERATIONS
|
390,956 | 8,063 | 399,019 | |||||||||
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OTHER INCOME/EXPENSE:
|
||||||||||||
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Interest expense, net of interest capitalized
|
(24,879 | ) | - | (24,879 | ) | |||||||
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Interest income
|
1,508 | (219 | ) | 1,289 | ||||||||
|
Gain on debt extinguishment
|
5,324 | - | 5,324 | |||||||||
|
Other - net
|
6,108 | (6,569 | ) | (461 | ) | |||||||
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Total other income/expense - net
|
(11,939 | ) | (6,788 | ) | (18,727 | ) | ||||||
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INCOME BEFORE INCOME TAXES
|
379,017 | 1,275 | 380,292 | |||||||||
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Provision for income taxes
|
99,022 | 1,145 | 100,167 | |||||||||
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NET INCOME
|
$ | 279,995 | $ | 130 | $ | 280,125 | ||||||
|
PER SHARE AMOUNTS:
|
||||||||||||
|
Net income - basic
|
$ | 2.39 | $ | 2.39 | ||||||||
|
Net income - diluted
|
$ | 2.36 | $ | 2.36 | ||||||||
|
Shares - basic
|
117,021 | 117,021 | ||||||||||
|
Shares - diluted
|
118,818 | 118,818 | ||||||||||
Rowan Companies, Inc. and Subsidiaries
Unaudited Pro Forma Condensed Consolidated Income Statement for the year ended December 31, 2009
Assuming sale of LeTourneau occurred on January 1, 2008
(in thousands)
|
Year ended December 31, 2009
|
||||||||||||
|
Deduct: Operations
|
||||||||||||
|
attributable to
|
||||||||||||
|
Historical
|
LeTourneau
|
Pro Forma
|
||||||||||
|
REVENUES
|
$ | 1,770,180 | $ | (555,284 | ) | $ | 1,214,896 | |||||
|
COSTS AND EXPENSES:
|
||||||||||||
|
Direct operating costs (excluding items below)
|
1,000,710 | (475,553 | ) | 525,157 | ||||||||
|
Depreciation and amortization
|
171,445 | (15,522 | ) | 155,923 | ||||||||
|
Selling, general and administrative
|
102,760 | (34,756 | ) | 68,004 | ||||||||
|
Gain on disposals of property and equipment
|
(5,748 | ) | (562 | ) | (6,310 | ) | ||||||
|
Total costs and expenses
|
1,269,167 | (526,393 | ) | 742,774 | ||||||||
|
INCOME FROM OPERATIONS
|
501,013 | (28,891 | ) | 472,122 | ||||||||
|
OTHER INCOME/EXPENSE:
|
||||||||||||
|
Interest expense, net of interest capitalized
|
(8,028 | ) | - | (8,028 | ) | |||||||
|
Interest income
|
1,240 | (46 | ) | 1,194 | ||||||||
|
Other - net
|
6,866 | (6,853 | ) | 13 | ||||||||
|
Total other income/expense - net
|
78 | (6,899 | ) | (6,821 | ) | |||||||
|
INCOME BEFORE INCOME TAXES
|
501,091 | (35,790 | ) | 465,301 | ||||||||
|
Provision for income taxes
|
133,587 | (11,084 | ) | 122,503 | ||||||||
|
NET INCOME
|
$ | 367,504 | $ | (24,706 | ) | $ | 342,798 | |||||
|
PER SHARE AMOUNTS:
|
||||||||||||
|
Net income - basic
|
$ | 3.24 | $ | 3.02 | ||||||||
|
Net income - diluted
|
$ | 3.24 | $ | 3.02 | ||||||||
|
Shares - basic
|
113,515 | 113,515 | ||||||||||
|
Shares - diluted
|
113,584 | 113,584 | ||||||||||
Rowan Companies, Inc. and Subsidiaries
Unaudited Pro Forma Condensed Consolidated Income Statement for the year ended December 31, 2008
Assuming sale of LeTourneau occurred on January 1, 2008
(in thousands)
|
Year ended December 31, 2008
|
||||||||||||
|
Deduct: Operations
|
||||||||||||
|
attributable to
|
||||||||||||
|
Historical
|
LeTourneau
|
Pro Forma
|
||||||||||
|
REVENUES
|
$ | 2,212,736 | $ | (761,113 | ) | $ | 1,451,623 | |||||
|
COSTS AND EXPENSES:
|
||||||||||||
|
Direct operating costs (excluding items below)
|
1,254,610 | (624,814 | ) | 629,796 | ||||||||
|
Depreciation and amortization
|
141,395 | (15,534 | ) | 125,861 | ||||||||
|
Selling, general and administrative
|
115,226 | (45,991 | ) | 69,235 | ||||||||
|
Gain on disposals of property and equipment
|
(30,701 | ) | (257 | ) | (30,958 | ) | ||||||
|
Material charges
|
111,171 | (86,536 | ) | 24,635 | ||||||||
|
Gain on hurricane-related event
|
(37,088 | ) | - | (37,088 | ) | |||||||
|
Total costs and expenses
|
1,554,613 | (773,132 | ) | 781,481 | ||||||||
|
INCOME FROM OPERATIONS
|
658,123 | 12,019 | 670,142 | |||||||||
|
OTHER INCOME/EXPENSE:
|
||||||||||||
|
Interest expense, net of interest capitalized
|
(1,198 | ) | - | (1,198 | ) | |||||||
|
Interest income
|
6,295 | (56 | ) | 6,239 | ||||||||
|
Other - net
|
(9,129 | ) | 10,491 | 1,362 | ||||||||
|
Total other income/expense - net
|
(4,032 | ) | 10,435 | 6,403 | ||||||||
|
INCOME BEFORE INCOME TAXES
|
654,091 | 22,454 | 676,545 | |||||||||
|
Provision for income taxes
|
226,463 | 6,286 | 232,749 | |||||||||
|
NET INCOME
|
$ | 427,628 | $ | 16,168 | $ | 443,796 | ||||||
|
PER SHARE AMOUNTS:
|
||||||||||||
|
Net income - basic
|
$ | 3.80 | $ | 3.94 | ||||||||
|
Net income - diluted
|
$ | 3.77 | $ | 3.92 | ||||||||
|
Shares - basic
|
112,632 | 112,632 | ||||||||||
|
Shares - diluted
|
113,346 | 113,346 | ||||||||||