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

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8-K - 3RD QTR FY13 EARNINGS - ATWOOD OCEANICS INC	atw-20136308xk.htm

EXHIBIT 99.1

Houston, Texas

July 31, 2013

FOR IMMEDIATE RELEASE - EARNINGS

ATWOOD OCEANICS, INC., announced today that the Company earned net income of $90.0 million or $1.37 per diluted share, on revenues of $272.7 million for the quarter ended June 30, 2013 compared to net income of $85.5 million or $1.28 per diluted share on revenues of $253.2 million for the quarter ended March 31, 2013 and 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. For the nine months ended June 30, 2013, the Company earned net income of $248.3 million or $3.75 per diluted share, on revenues of $770.9 million compared to net income of $176.6 million or $2.69 per diluted share, on revenues of $534.9 million for the nine months ended June 30, 2012.



	For the Three Months Ended
(In thousands, except per share amounts)	June 30, 2013			March 31, 2013			June 30, 2012
Revenues	$	272,688		$	253,161		$	178,603
Income before Income Taxes	105,130			97,432			61,990
Provision for Income Taxes	(15,149		)	(11,913		)	(10,279		)
Net Income	$	89,981		$	85,519		$	51,711

Earnings per Common Share -
Basic	$	1.38		$	1.30		$	0.79
Diluted	$	1.37		$	1.28		$	0.79

Weighted Average Shares
Outstanding -
Basic	65,062			65,733			65,362
Diluted	65,858			66,589			65,823



	For the Nine Months Ended
(In thousands, except per share amounts)	June 30, 2013			June 30, 2012

Revenues	$	770,942		$	534,896
Income before Income Taxes	286,649			203,413
Provision for Income Taxes	(38,318		)	(26,768		)
Net Income	$	248,331		$	176,645

Earnings per Common Share -
Basic	$	3.79		$	2.71
Diluted	$	3.75		$	2.69

Weighted Average Shares
Outstanding -
Basic	65,441			65,221
Diluted	66,180			65,715

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)	2013			2012			2013			2012
REVENUES:
Contract drilling	$	272,688		$	178,603		$	770,942		$	534,896

COSTS AND EXPENSES:
Contract drilling	117,963			87,374			337,352			245,060
Depreciation	30,352			15,650			86,412			46,419
General and administrative	13,663			11,856			44,152			37,502
Other, net	(55		)	274			(68		)	1,137
	161,923			115,154			467,848			330,118

OPERATING INCOME	$	110,765		$	63,449		$	303,094		$	204,778

OTHER INCOME (EXPENSE)
Interest expense, net of capitalized interest	(5,692		)	(1,517		)	(16,647		)	(1,623		)
Interest Income	57			58			202			258
	(5,635		)	(1,459		)	(16,445		)	(1,365		)

INCOME BEFORE INCOME TAXES	105,130			61,990			286,649			203,413
PROVISION FOR INCOME TAXES	15,149			10,279			38,318			26,768
NET INCOME	$	89,981		$	51,711		$	248,331		$	176,645

EARNINGS PER COMMON SHARE:
Basic	$	1.38		$	0.79		$	3.79		$	2.71
Diluted	$	1.37		$	0.79		$	3.75		$	2.69
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic	65,062			65,362			65,441			65,221
Diluted	65,858			65,823			66,180			65,715

ATWOOD OCEANICS, INC. AND SUBSIDIARIES

UNAUDITED ANALYSIS OF REVENUES AND DRILLING COSTS

(Unaudited)



	REVENUES
	Three Months Ended						Nine Months Ended
(In millions)	June 30, 2013		March 31, 2013		June 30, 2012		June 30, 2013		June 30, 2012
Atwood Condor	$	42.5	$	39.3	$	—	$	122.3	$	—
Atwood Osprey	44.5		36.9		43.5		123.8		120.5
Atwood Eagle	31.5		35.0		31.1		93.9		100.2
Atwood Falcon	32.1		34.0		17.6		101.5		58.1
Atwood Hunter	38.7		35.0		47.4		110.8		140.1
Atwood Aurora	12.2		11.8		14.2		36.4		39.3
Atwood Beacon	14.0		14.8		10.3		42.8		31.0
Atwood Mako	13.2		13.1		—		39.5		—
Atwood Manta	13.0		12.5		—		28.8		—
Atwood Orca	9.9		—		—		9.9		—
Vicksburg	9.9		9.9		8.1		29.0		25.4
Reimbursable	11.2		10.9		6.4		32.3		20.3
	$	272.7	$	253.2	$	178.6	$	771.0	$	534.9



	CONTRACT DRILLING COSTS
	Three Months Ended						Nine Months Ended
(In millions)	June 30, 2013		March 31, 2013		June 30, 2012		June 30, 2013		June 30, 2012
Atwood Condor	$	16.4	$	14.6	$	—	$	45.3	$	—
Atwood Osprey	16.8		15.4		15.3		47.5		46.6
Atwood Eagle	15.5		15.2		14.5		50.5		46.3
Atwood Falcon	16.3		13.4		20.5		44.0		38.3
Atwood Hunter	11.0		10.1		11.5		32.6		35.0
Atwood Aurora	6.1		6.2		7.1		18.7		23.8
Atwood Beacon	7.0		8.4		7.4		25.6		21.4
Atwood Mako	4.8		5.4		—		15.4		—
Atwood Manta	4.8		5.1		—		12.0		—
Atwood Orca	3.7		—		—		4.0		—
Vicksburg	4.9		4.6		4.7		14.2		14.8
Reimbursable	8.5		8.9		2.5		23.4		11.9
Other	2.2		0.2		3.9		4.2		6.9
	$	118.0	$	107.5	$	87.4	$	337.4	$	245.0

ATWOOD OCEANICS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS



(In thousands)	June 30, 2013			September 30, 2012
ASSETS
Cash and cash equivalents	$	221,877		$	77,871
Accounts receivable, net of allowance for doubtful accounts of $4,000 and $0 at June 30, 2013 and September 30, 2012, respectively	179,980			167,186
Income tax receivable	7,141			5,750
Inventories of materials and supplies	100,825			80,290
Prepaid expenses and deferred costs	23,226			39,437
Total current assets	533,049			370,534

Property and equipment, net	3,035,572			2,537,340

Other receivables	11,869			11,875
Deferred costs and other assets	22,823			24,013
Total assets	$	3,603,313		$	2,943,762

LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable	$	72,622		$	83,592
Accrued liabilities	32,340			24,478
Notes payable	—			5,148
Income tax payable	16,022			9,711
Deferred credits	13,773			13,738
Total current liabilities	134,757			136,667

Long-term debt	1,338,500			830,000
Deferred income taxes	8,186			8,791
Deferred credits	1,322			8,928
Other	21,867			19,954
Total long-term liabilities	1,369,875			867,673

Commitments and contingencies

Preferred stock, no par value, 1,000 shares authorized, none outstanding	—			—
Common stock, $1.00 par value, 90,000 shares authorized with 63,952 and 65,452 issued and outstanding at June 30, 2013 and September 30, 2012, respectively	63,952			65,452
Paid-in capital	176,909			160,540
Retained earnings	1,859,512			1,716,441
Accumulated other comprehensive loss	(1,692		)	(3,011		)
Total shareholders' equity	2,098,681			1,939,422
Total liabilities and shareholders' equity	$	3,603,313		$	2,943,762

ATWOOD OCEANICS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED

STATEMENTS OF CASH FLOWS



	Nine Months Ended June 30,
(In thousands)	2013			2012
Cash flows from operating activities:
Net income	$	248,331		$	176,645
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	86,412			46,419
Amortization of debt issuance costs and bond premium	3,083			2,590
Amortization of deferred items	1,227			3,736
Provision for doubtful accounts	3,510			540
Provision for inventory obsolescence	1,530			615
Deferred income tax benefit	(605		)	(513		)
Share-based compensation expense	10,418			7,709
Other, net	(67		)	1,137
Change in assets and liabilities:
Accounts receivable	(18,297		)	2,253
Income tax receivable	(1,391		)	890
Inventory	(22,065		)	(15,200		)
Prepaid expenses	12,788			6,186
Deferred costs and other assets	(9,519		)	(22,343		)
Accounts payable	(10,970		)	20,467
Accrued liabilities	(6,745		)	2,356
Bond premium	8,500			—
Income tax payable	6,311			(4,859		)
Deferred credits and other liabilities	9,989			10,006
Net cash provided by operating activities	322,440			238,634

Cash flows from investing activities:
Capital expenditures	(569,696		)	(594,789		)
Proceeds from sale of assets	129			7,513
Net cash used in investing activities	(569,567		)	(587,276		)

Cash flows from financing activities:
Proceeds from issuance of bonds	200,000			450,000
Proceeds from bank credit facilities	400,000			135,000
Principal payments on bank credit facilities	(100,000		)	(450,000		)
Principal payments on notes payable	(5,148		)	(5,461		)
Repurchase and retirement of common shares	(107,260		)	—
Proceeds from exercise of stock options	6,451			3,262
Debt issuance costs paid	(2,910		)	(181		)
Net cash provided by financing activities	391,133			132,620
Net increase (decrease) in cash and cash equivalents	$	144,006		$	(216,022	)
Cash and cash equivalents, at beginning of period	$	77,871		$	295,002
Cash and cash equivalents, at end of period	$	221,877		$	78,980

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 13 mobile offshore drilling units and is constructing four 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."

Contact: Mark L. Mey

(281) 749-7902

ATWOOD OCEANICS INC - FORM 8-K - EX-99.1 - FINANCIAL STATEMENTS - July 31, 2013

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ATWOOD OCEANICS INC Reports