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| 8-K - 4TH QTR FY13 EARNINGS - ATWOOD OCEANICS INC | atw-201309308xk.htm |
EXHIBIT 99.1
Houston, Texas
November 8, 2013
FOR IMMEDIATE RELEASE - EARNINGS
ATWOOD OCEANICS, INC., announced today that the Company earned net income of $101.9 million or $1.57 per diluted share, on revenues of $292.7 million for the quarter ended September 30, 2013 compared to 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 and compared to 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. For the twelve months ended September 30, 2013, the Company earned net income of $350.2 million or $5.32 per diluted share, on revenues of $1,063.7 million compared to net income of $272.2 million or $4.14 per diluted share, on revenues of $787.4 million for the twelve months ended September 30, 2012.
For the Three Months Ended | |||||||||||
(Unaudited) | |||||||||||
(In thousands, except per share amounts) | September 30, 2013 | June 30, 2013 | September 30, 2012 | ||||||||
Revenues | $ | 292,721 | $ | 272,688 | $ | 252,525 | |||||
Income before Income Taxes | 118,152 | 105,130 | 109,891 | ||||||||
Provision for Income Taxes | (16,259 | ) | (15,149 | ) | (14,365 | ) | |||||
Net Income | $ | 101,893 | $ | 89,981 | $ | 95,526 | |||||
Earnings per Common Share - | |||||||||||
Basic | $ | 1.59 | $ | 1.38 | $ | 1.46 | |||||
Diluted | $ | 1.57 | $ | 1.37 | $ | 1.45 | |||||
For the Twelve Months Ended | |||||||||
(Unaudited) | |||||||||
(In thousands, except per share amounts) | September 30, 2013 | September 30, 2012 | |||||||
Revenues | $ | 1,063,663 | $ | 787,421 | |||||
Income before Income Taxes | 404,801 | 313,304 | |||||||
Provision for Income Taxes | (54,577 | ) | (41,133 | ) | |||||
Net Income | $ | 350,224 | $ | 272,171 | |||||
Earnings per Common Share - | |||||||||
Basic | $ | 5.38 | $ | 4.17 | |||||
Diluted | $ | 5.32 | $ | 4.14 | |||||
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ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended September 30, | Twelve Months Ended September 30, | ||||||||||||||
(In thousands, except per share amounts) | 2013 | 2012 | 2013 | 2012 | |||||||||||
REVENUES: | |||||||||||||||
Contract drilling | $ | 279,318 | $ | 241,496 | $ | 1,017,923 | $ | 755,969 | |||||||
Revenues related to reimbursable expenses | 13,403 | 11,029 | 45,740 | 31,452 | |||||||||||
Total revenues | 292,721 | 252,525 | 1,063,663 | 787,421 | |||||||||||
COSTS AND EXPENSES: | |||||||||||||||
Contract drilling | 112,186 | 95,367 | 426,198 | 328,485 | |||||||||||
Reimbursable expenses | 9,387 | 6,752 | 32,727 | 18,694 | |||||||||||
Depreciation | 31,098 | 24,180 | 117,510 | 70,599 | |||||||||||
General and administrative | 12,634 | 12,275 | 56,786 | 49,776 | |||||||||||
Other, net | 1,039 | (680 | ) | 971 | 457 | ||||||||||
166,344 | 137,894 | 634,192 | 468,011 | ||||||||||||
OPERATING INCOME | $ | 126,377 | $ | 114,631 | $ | 429,471 | $ | 319,410 | |||||||
OTHER INCOME (EXPENSE) | |||||||||||||||
Interest expense, net of capitalized interest | (8,256 | ) | (4,837 | ) | (24,903 | ) | (6,460 | ) | |||||||
Interest Income | 31 | 97 | 233 | 354 | |||||||||||
(8,225 | ) | (4,740 | ) | (24,670 | ) | (6,106 | ) | ||||||||
INCOME BEFORE INCOME TAXES | 118,152 | 109,891 | 404,801 | 313,304 | |||||||||||
PROVISION FOR INCOME TAXES | 16,259 | 14,365 | 54,577 | 41,133 | |||||||||||
NET INCOME | $ | 101,893 | $ | 95,526 | $ | 350,224 | $ | 272,171 | |||||||
EARNINGS PER COMMON SHARE: | |||||||||||||||
Basic | $ | 1.59 | $ | 1.46 | $ | 5.38 | $ | 4.17 | |||||||
Diluted | $ | 1.57 | $ | 1.45 | $ | 5.32 | $ | 4.14 | |||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||||||||||
Basic | 64,024 | 65,407 | 65,073 | 65,267 | |||||||||||
Diluted | 64,895 | 65,982 | 65,845 | 65,781 | |||||||||||
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ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED ANALYSIS OF REVENUES AND DRILLING COSTS
(Unaudited)
REVENUES | |||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
(In millions) | September 30, 2013 | June 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | ||||||||||||||
Atwood Condor | $ | 47.9 | $ | 42.5 | $ | 32.8 | $ | 170.2 | $ | 32.7 | |||||||||
Atwood Osprey | 41.2 | 44.5 | 46.0 | 165.0 | 166.5 | ||||||||||||||
Atwood Eagle | 37.1 | 31.5 | 32.7 | 131.0 | 132.9 | ||||||||||||||
Atwood Falcon | 32.1 | 32.1 | 35.2 | 133.7 | 93.4 | ||||||||||||||
Atwood Hunter | 39.6 | 38.7 | 50.1 | 150.3 | 190.2 | ||||||||||||||
Atwood Aurora | 14.2 | 12.2 | 14.6 | 50.6 | 53.7 | ||||||||||||||
Atwood Beacon | 14.1 | 14.0 | 17.1 | 56.9 | 48.1 | ||||||||||||||
Atwood Mako | 13.4 | 13.2 | 4.1 | 52.9 | 4.1 | ||||||||||||||
Atwood Manta | 14.0 | 13.0 | — | 42.8 | — | ||||||||||||||
Atwood Orca | 14.6 | 9.9 | — | 24.5 | — | ||||||||||||||
Vicksburg | 11.1 | 9.9 | 8.9 | 40.1 | 34.3 | ||||||||||||||
Reimbursable | 13.4 | 11.2 | 11.0 | 45.7 | 31.5 | ||||||||||||||
$ | 292.7 | $ | 272.7 | $ | 252.5 | $ | 1,063.7 | $ | 787.4 | ||||||||||
DRILLING COSTS | |||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
(In millions) | September 30, 2013 | June 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | ||||||||||||||
Atwood Condor | $ | 15.7 | $ | 16.4 | $ | 12.7 | $ | 61.0 | $ | 12.7 | |||||||||
Atwood Osprey | 16.2 | 16.8 | 16.8 | 63.8 | 63.4 | ||||||||||||||
Atwood Eagle | 14.9 | 15.5 | 13.6 | 65.4 | 59.9 | ||||||||||||||
Atwood Falcon | 14.2 | 16.3 | 13.7 | 58.3 | 52.0 | ||||||||||||||
Atwood Hunter | 11.8 | 11.0 | 12.1 | 44.5 | 47.2 | ||||||||||||||
Atwood Aurora | 7.0 | 6.1 | 6.3 | 25.7 | 30.1 | ||||||||||||||
Atwood Beacon | 8.2 | 7.0 | 11.0 | 33.7 | 32.4 | ||||||||||||||
Atwood Mako | 4.6 | 4.8 | 2.9 | 19.9 | 2.9 | ||||||||||||||
Atwood Manta | 4.6 | 4.8 | — | 16.6 | — | ||||||||||||||
Atwood Orca | 4.8 | 3.7 | — | 8.8 | — | ||||||||||||||
Vicksburg | 4.9 | 4.9 | 5.5 | 19.1 | 20.3 | ||||||||||||||
Reimbursable | 9.4 | 8.5 | 6.8 | 32.7 | 18.7 | ||||||||||||||
Other | 5.3 | 2.2 | 0.7 | 9.4 | 7.6 | ||||||||||||||
$ | 121.6 | $ | 118.0 | $ | 102.1 | $ | 458.9 | $ | 347.2 | ||||||||||
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ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands) | September 30, 2013 | September 30, 2012 | |||||
ASSETS | |||||||
Cash and cash equivalents | $ | 88,770 | $ | 77,871 | |||
Accounts receivable | 199,689 | 167,186 | |||||
Income tax receivable | 4,672 | 5,750 | |||||
Inventories of materials and supplies | 121,833 | 80,290 | |||||
Prepaid expenses and deferred costs | 38,796 | 39,437 | |||||
Total current assets | 453,760 | 370,534 | |||||
Property and equipment, net | 3,164,724 | 2,537,340 | |||||
Other receivables | 11,831 | 11,875 | |||||
Deferred costs and other assets | 26,951 | 24,013 | |||||
Total assets | $ | 3,657,266 | $ | 2,943,762 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Accounts payable | $ | 95,827 | $ | 83,592 | |||
Accrued liabilities | 17,653 | 19,603 | |||||
Notes payable | 8,071 | 5,148 | |||||
Interest payable | 7,945 | 4,875 | |||||
Income tax payable | 15,574 | 9,711 | |||||
Deferred credits | 10,822 | 13,738 | |||||
Total current liabilities | 155,892 | 136,667 | |||||
Long-term debt | 1,263,232 | 830,000 | |||||
Deferred income taxes | 7,975 | 8,791 | |||||
Deferred credits | 1,176 | 8,928 | |||||
Other | 21,620 | 19,954 | |||||
Total long-term liabilities | 1,294,003 | 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 64,057 and 65,452 issued and outstanding at September 30, 2013 and 2012, respectively | 64,057 | 65,452 | |||||
Paid-in capital | 183,390 | 160,540 | |||||
Retained earnings | 1,961,405 | 1,716,441 | |||||
Accumulated other comprehensive loss | (1,481 | ) | (3,011 | ) | |||
Total shareholders' equity | 2,207,371 | 1,939,422 | |||||
Total liabilities and shareholders' equity | $ | 3,657,266 | $ | 2,943,762 | |||
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ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Years Ended September 30, | |||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 350,224 | $ | 272,171 | $ | 271,674 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation | 117,510 | 70,599 | 43,597 | ||||||||
Amortization of debt issuance costs and bond premium | 4,184 | 3,625 | 2,363 | ||||||||
Amortization of deferred items | 1,040 | (4,337 | ) | 3,333 | |||||||
Provision for doubtful accounts | 3,871 | — | — | ||||||||
Provision for inventory obsolescence | 1,711 | 765 | 735 | ||||||||
Deferred income tax benefit | (816 | ) | (989 | ) | (1,065 | ) | |||||
Share-based compensation expense | 14,231 | 10,402 | 6,314 | ||||||||
Other, net | 977 | 457 | 4,847 | ||||||||
Change in assets and liabilities: | |||||||||||
Accounts receivable | (36,330 | ) | (80,013 | ) | 13,214 | ||||||
Income tax receivable | 1,078 | (119 | ) | 10,421 | |||||||
Inventory | (43,254 | ) | (23,395 | ) | (6,249 | ) | |||||
Prepaid expenses | (712 | ) | (6,386 | ) | 845 | ||||||
Deferred costs and other assets | (19,706 | ) | (32,597 | ) | (10,379 | ) | |||||
Accounts payable | 11,440 | 27,536 | (1,173 | ) | |||||||
Accrued liabilities | 1,430 | (7,096 | ) | 4,440 | |||||||
Bond premium | 8,500 | — | |||||||||
Income tax payable | 5,863 | 1,250 | (17,906 | ) | |||||||
Deferred credits and other liabilities | 10,869 | 23,730 | 14,777 | ||||||||
Net cash provided by operating activities | 432,110 | 255,603 | 339,788 | ||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (745,223 | ) | (785,083 | ) | (514,858 | ) | |||||
Proceeds from sale of assets | 147 | 7,646 | 218 | ||||||||
Net cash used in investing activities | (745,076 | ) | (777,437 | ) | (514,640 | ) | |||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of bonds | 200,000 | 450,000 | — | ||||||||
Proceeds from bank credit facilities | 400,000 | 310,000 | 345,000 | ||||||||
Principal payments on bank credit facilities | (175,000 | ) | (450,000 | ) | (55,000 | ) | |||||
Proceeds from notes payable | 14,095 | 5,148 | 9,092 | ||||||||
Principal payments on notes payable | (11,172 | ) | (5,461 | ) | (3,631 | ) | |||||
Repurchase and retirement of common shares | (107,260 | ) | — | — | |||||||
Proceeds from exercise of stock options | 9,224 | 5,546 | 6,192 | ||||||||
Debt issuance costs paid | (6,022 | ) | (10,530 | ) | (12,322 | ) | |||||
Net cash provided by financing activities | 323,865 | 304,703 | 289,331 | ||||||||
Net increase (decrease) in cash and cash equivalents | $ | 10,899 | $ | (217,131 | ) | $ | 114,479 | ||||
Cash and cash equivalents, at beginning of period | $ | 77,871 | $ | 295,002 | $ | 180,523 | |||||
Cash and cash equivalents, at end of period | $ | 88,770 | $ | 77,871 | $ | 295,002 | |||||
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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
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