ATWOOD OCEANICS INC - FORM 8-K - EX-99.1 - FINANCIAL STATEMENTS

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8-K - 4TH QTR EARNINGS - ATWOOD OCEANICS INC	atw-20129308xk.htm

EXHIBIT 99.1

Houston, Texas

November 15, 2012

FOR IMMEDIATE RELEASE - EARNINGS

ATWOOD OCEANICS, INC., announced today that the Company earned net income of $95.5 million or $1.45 per diluted share, on revenues of $252.5 million for the quarter ended September 30, 2012 compared to net income of $51.7 million or $0.79 per diluted share on revenues of $178.6 million for the quarter ended June 30, 2012 and compared to net income of $72.9 million or $1.12 per diluted share, on revenues of $177.6 million for the quarter ended September 30, 2011. For the twelve months ended September 30, 2012, the Company earned net income of $272.2 million or $4.14 per diluted share, on revenues of $787.4 million compared to net income of $271.7 million or $4.15 per diluted share, on revenues of $645.1 million for the twelve months ended September 30, 2011.

Rob Saltiel, President & CEO, commented, “We had an outstanding fourth quarter and full fiscal year, achieving record revenues and net income for our company in both time periods. For the quarter, our rig teams achieved excellent operational and safety performance that yielded strong revenue recognition, while our fleet transformation progressed with the successful delivery and start-up of the Atwood Mako and the successful delivery and mobilization of the Atwood Condor to the Gulf of Mexico. We also secured our first drilling services agreement for the Atwood Advantage, and we committed to build a third ultra-deepwater drillship to join our growing high-specification rig fleet.”



	FOR THE THREE MONTHS ENDED
				(In thousands)
	September 30, 2012			June 30, 2012			September 30, 2011

Revenues	$	252,525		$	178,603		$	177,558
Income before Income Taxes	109,891			61,990			83,918
Provision for Income Taxes	(14,365		)	(10,279		)	(10,991		)
Net Income	$	95,526		$	51,711		$	72,927

Earnings per Common Share -
Basic	1.46			0.79			1.13
Diluted	1.45			0.79			1.12

Weighted Average Shares
Outstanding -
Basic	65,407			65,362			64,754
Diluted	65,982			65,823			65,403

ATWOOD OCEANICS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)




	Three months ended September 30,						Twelve months ended September 30,
	2012			2011			2012			2011

REVENUES:
Contract drilling	$	252,525		$	177,558		$	787,421		$	645,076

COSTS AND EXPENSES:
Contract drilling	102,119			61,815			347,179			223,565
Depreciation	24,180			15,606			70,599			43,597
General and administrative	12,275			9,927			49,776			44,407
Other, net	(680		)	4,924			457			4,847
	137,894			92,272			468,011			316,416
OPERATING INCOME	114,631			85,286			319,410			328,660

OTHER INCOME (EXPENSE)
Interest expense, net of capitalized interest	(4,837		)	(1,493		)	(6,460		)	(4,530		)
Interest Income	97			125			354			717
	(4,740		)	(1,368		)	(6,106		)	(3,813		)
INCOME BEFORE INCOME TAXES	109,891			83,918			313,304			324,847
PROVISION FOR INCOME TAXES	14,365			10,991			41,133			53,173
NET INCOME	$	95,526		$	72,927		$	272,171		$	271,674

EARNINGS PER COMMON SHARE:
Basic	1.46			1.13			4.17			4.20
Diluted	1.45			1.12			4.14			4.15
AVERAGE COMMON SHARES OUTSTANDING:
Basic	65,407			64,754			65,267			64,754
Diluted	65,982			65,403			65,781			65,403

ATWOOD OCEANICS, INC. AND SUBSIDIARIES

ANALYSIS OF REVENUES AND DRILLING COSTS

(Unaudited)



	REVENUES (In millions)
	Three Months Ended						Twelve Months Ended
	September 30, 2012		June 30, 2012		September 30, 2011		September 30, 2012		September 30, 2011
Atwood Condor	$	36.1	$	—	$	—	$	36.1	$	—
Atwood Osprey	$	47.9	$	45.0	$	43.5	$	172.2	$	59.9
Atwood Eagle	33.4		31.6		35.4		135.6		139.8
Atwood Falcon	37.2		18.3		35.0		99.8		153.4
Atwood Hunter	51.5		48.2		43.3		195.0		183.4
Atwood Aurora	14.9		14.9		0.6		55.5		29.2
Atwood Beacon	17.6		10.8		11.1		51.5		45.1
Atwood Mako	4.2		—		—		4.3		—
Vicksburg	9.2		8.3		8.7		35.4		34.3
Other	0.5		1.5		—		2.0		—
	$	252.5	$	178.6	$	177.6	$	787.4	$	645.1



	CONTRACT DRILLING COSTS (In millions)
	Three Months Ended						Twelve Months Ended
	September 30, 2012		June 30, 2012		September 30, 2011		September 30, 2012		September 30, 2011
Atwood Condor	$	15.2	$	2.7	$	—	$	18.9	$	—
Atwood Osprey	$	17.8	$	16.1	$	14.6	$	66.0	$	22.9
Atwood Eagle	14.0		14.9		13.1		61.7		62.5
Atwood Falcon	15.2		21.0		6.5		56.6		29.4
Atwood Hunter	12.8		11.7		13.0		50.4		39.0
Atwood Aurora	6.4		7.4		3.9		31.0		18.5
Atwood Beacon	11.1		7.6		5.1		34.6		28.7
Atwood Mako	3.0		—		—		3.0		—
Vicksburg	5.6		4.8		4.5		20.8		16.4
Other	1.0		1.2		1.1		4.2		6.2
	$	102.1	$	87.4	$	61.8	$	347.2	$	223.6

ATWOOD OCEANICS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)



	September 30, 2012			September 30, 2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	77,871		$	295,002
Accounts receivable	167,186			87,173
Income tax receivable	5,750			5,631
Inventories of materials and supplies	80,290			58,263
Prepaid expenses and deferred costs	39,437			14,862
Total current assets	370,534			460,931
PROPERTY AND EQUIPMENT, net	2,537,340			1,887,321
LONG TERM ASSETS:
Other receivables	11,875			11,875
Deferred costs and other assets	24,013			15,264
Total long-term assets	35,888			27,139
Total assets	$	2,943,762		$	2,375,391
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	83,592		$	113,021
Accrued liabilities	24,478			30,680
Notes payable	5,148			5,461
Income tax payable	9,711			8,461
Deferred credits	13,738			1,700
Total current liabilities	136,667			159,323
LONG TERM LIABILITIES:
Long-term debt	830,000			520,000
Deferred income taxes	8,791			9,780
Deferred credits	8,928			7,910
Other	19,954			25,591
Total long-term liabilities	867,673			563,281
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock, no par value;
1,000 shares authorized, none outstanding	—			—
Common Stock, $1.00 par value;
90,000 shares authorized with 65,452 and 64,960 issued and outstanding at September 30, 2012 and 2011, respectively	65,452			64,960
Paid-in capital	160,540			145,084
Retained earnings	1,716,441			1,444,270
Accumulated other comprehensive loss	(3,011		)	(1,527		)
Total shareholders' equity	1,939,422			1,652,787
Total liabilities and shareholders' equity	$	2,943,762		$	2,375,391

Atwood Oceanics, Inc. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS



	Years Ended September 30,
(In thousands)	2012			2011			2010
Cash flows from operating activities:
Net income	$	272,171		$	271,674		$	256,996
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	70,599			43,597			37,030
Amortization of debt issuance costs	3,625			2,363			803
Amortization of deferred items	(4,337		)	3,333			13,755
Provision for doubtful accounts	—			—			(65		)
Provision for inventory obsolescence	765			735			1,123
Deferred income tax (benefit) expense	(989		)	(1,065		)	4,798
Share-based compensation expense	10,402			6,314			9,998
Other, net	457			4,847			(1,855		)
Change in assets and liabilities:
(Increase) decrease in accounts receivable	(80,013		)	13,214			26,187
Decrease in insurance receivable	—			—			281
(Increase) decrease in income tax receivable	(119		)	10,421			(7,746		)
Increase in inventory	(23,395		)	(6,249		)	(3,736		)
(Increase) decrease in prepaid expenses	(6,386		)	845			(179		)
Increase in deferred costs and other assets	(32,597		)	(10,379		)	(10,321		)
Increase (decrease) in accounts payable	27,536			(1,173		)	4,735
Increase (decrease) in accrued liabilities	(7,096		)	4,440			(854		)
Increase (decrease) in income tax payable	1,250			(17,906		)	(2,700		)
Increase (decrease) in deferred credits and other liabilities	23,730			14,777			(21,850		)
	(16,568		)	68,114			49,404
Net Cash Provided by Operating Activities	255,603			339,788			306,400
Cash flows from investing activities:
Capital expenditures	(785,083		)	(514,858		)	(187,094		)
Collection of insurance receivable	—			—			3,607
Proceeds from sale of assets	7,646			218			1,504
Net Cash Used by Investing Activities	(777,437		)	(514,640		)	(181,983		)
Cash flows from financing activities:
Proceeds from issuance of bonds	450,000			—			—
Principal payments on bank credit facilities	(450,000		)	(55,000		)	(45,000		)
Proceeds from bank credit facilities	310,000			345,000			—
Principal payments on notes payable	(5,461		)	(3,631		)	—
Proceeds from notes payable	5,148			9,092			—
Debt issuance costs paid	(10,530		)	(12,322		)	—
Proceeds from exercise of stock options	5,546			6,192			847
Net Cash Provided (Used) by Financing Activities	304,703			289,331			(44,153		)
Net increase (decrease) in cash and cash equivalents	$	(217,131	)	$	114,479		$	80,264
Cash and cash equivalents, at beginning of period	$	295,002		$	180,523		$	100,259
Cash and cash equivalents, at end of period	$	77,871		$	295,002		$	180,523

Atwood Oceanics, Inc. is a global offshore drilling contractor engaged in the drilling and completion of exploratory and developmental oil and gas wells. The company currently owns 12 mobile offshore drilling units and is constructing three ultra-deepwater drillships and one high-specification jackups. 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."

Contact: Mark L. Mey

(281) 749-7902

ATWOOD OCEANICS INC - FORM 8-K - EX-99.1 - FINANCIAL STATEMENTS - November 15, 2012

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ATWOOD OCEANICS INC Reports