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

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8-K - 4TH QUARTER FY14 EARNINGS - ATWOOD OCEANICS INC	atw-201409308xk.htm

EXHIBIT 99.1

Houston, Texas

November 10, 2014

FOR IMMEDIATE RELEASE - EARNINGS

ATWOOD OCEANICS, INC., announced today that the Company earned net income of $112.2 million or $1.72 per diluted share, on revenues of $323.4 million for the quarter ended September 30, 2014 compared to net income of $71.9 million or $1.11 per diluted share on revenues of $292.8 million for the quarter ended June 30, 2014 and compared to 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. For the twelve months ended September 30, 2014, the Company earned net income of $340.8 million or $5.24 per diluted share, on revenues of $1.17 billion compared to net income of $350.2 million or $5.32 per diluted share, on revenues of $1.06 billion for the twelve months ended September 30, 2013.



	For the Three Months Ended
				(Unaudited)
(In thousands, except per share amounts)	September 30, 2014			June 30, 2014			September 30, 2013
Revenues	$	323,373		$	292,777		$	292,721
Income before Income Taxes	126,385			79,365			118,152
Provision for Income Taxes	(14,185		)	(7,440		)	(16,259		)
Net Income	$	112,200		$	71,925		$	101,893

Earnings per Common Share -
Basic	$	1.74		$	1.12		$	1.59
Diluted	$	1.72		$	1.11		$	1.57



	For the Twelve Months Ended
				(Unaudited)
(In thousands, except per share amounts)	September 30, 2014				September 30, 2013
Revenues	$	1,173,953			$	1,063,663
Income before Income Taxes	397,293				404,801
Provision for Income Taxes	(56,471		)		(54,577		)
Net Income	$	340,822			$	350,224

Earnings per Common Share -
Basic	$	5.31			$	5.38
Diluted	$	5.24			$	5.32

ATWOOD OCEANICS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



	Three Months Ended September 30,						Twelve Months Ended September 30,
(In thousands, except per share amounts)	2014			2013			2014			2013
REVENUES:
Contract drilling	$	304,853		$	279,318		$	1,103,397		$	1,017,923
Revenues related to reimbursable expenses	18,520			13,403			70,556			45,740
Total revenues	323,373			292,721			1,173,953			1,063,663

COSTS AND EXPENSES:
Contract drilling	117,413			112,186			506,128			426,198
Reimbursable expenses	15,130			9,387			56,225			32,727
Depreciation	39,982			31,098			147,358			117,510
General and administrative	13,773			12,634			61,461			56,786
(Gain)/loss on sale of equipment	(67		)	1,039			(34,139		)	971
Other, net	(49		)	—			(1,864		)	—
	186,182			166,344			735,169			634,192

OPERATING INCOME	$	137,191		$	126,377		$	438,784		$	429,471

OTHER INCOME (EXPENSE)
Interest expense, net of capitalized interest	(10,871		)	(8,256		)	(41,803		)	(24,903		)
Interest Income	65			31			312			233
	(10,806		)	(8,225		)	(41,491		)	(24,670		)

INCOME BEFORE INCOME TAXES	126,385			118,152			397,293			404,801
PROVISION FOR INCOME TAXES	14,185			16,259			56,471			54,577
NET INCOME	$	112,200		$	101,893		$	340,822		$	350,224

EARNINGS PER COMMON SHARE:
Basic	$	1.74		$	1.59		$	5.31		$	5.38
Diluted	$	1.72		$	1.57		$	5.24		$	5.32
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic	64,352			64,024			64,240			65,073
Diluted	65,229			64,895			65,074			65,845

ATWOOD OCEANICS, INC. AND SUBSIDIARIES

UNAUDITED ANALYSIS OF REVENUES AND DRILLING COSTS



	REVENUES
	Three Months Ended						Twelve Months Ended
(In millions)	September 30, 2014		June 30, 2014		September 30, 2013		September 30, 2014		September 30, 2013
Ultra-Deepwater	$	137	$	118	$	89	$	462	$	335
Deepwater	92		70		109		333		415
Jackups	76		77		81		308		268
Reimbursable	18		28		14		71		46
	$	323	$	293	$	293	$	1,174	$	1,064



	DRILLING COSTS
	Three Months Ended						Twelve Months Ended
(In millions)	September 30, 2014		June 30, 2014		September 30, 2013		September 30, 2014		September 30, 2013
Ultra-Deepwater	$	42	$	44	$	32	$	167	$	127
Deepwater	43		52		41		201		168
Jackups	30		32		34		132		124
Reimbursable	15		23		9		56		33
Other	3		1		6		6		7
	$	133	$	152	$	122	$	562	$	459

ATWOOD OCEANICS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS



(In thousands)	September 30, 2014		September 30, 2013
ASSETS
Cash	$	80,080	$	88,770
Accounts receivable	242,684		199,689
Income tax receivable	6,260		4,672
Inventories of materials and supplies	132,368		121,833
Prepaid expenses, deferred costs and other current assets	36,415		38,796
Total current assets	497,807		453,760

Property and equipment, net	3,967,028		3,164,724

Other receivables	11,831		11,831
Deferred income taxes	589		—
Deferred costs and other assets	29,973		26,951
Total assets	$	4,507,228	$	3,657,266

LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable	$	94,315	$	95,827
Accrued liabilities	19,158		17,653
Dividends payable	16,090		—
Short-term debt	11,885		8,071
Interest payable	8,099		7,945
Income tax payable	14,234		16,554
Deferred credits and other liabilities	3,596		10,822
Total current liabilities	167,377		156,872

Long-term debt	1,742,122		1,263,232
Deferred income taxes	783		485
Deferred credits	4,100		1,176
Other	37,322		28,130
Total long-term liabilities	1,784,327		1,293,023

Commitments and contingencies

Preferred stock, no par value, 1,000 shares authorized, none outstanding	—		—
Common stock, $1.00 par value, 180,000 shares authorized with 64,362 issued and outstanding at September 30, 2014 and 90,000 shares authorized with 64,057 issued and outstanding at September 30, 2013	64,362		64,057
Paid-in capital	201,464		183,390
Retained earnings	2,286,137		1,961,405
Accumulated other comprehensive income (loss)	3,561		(1,481		)
Total shareholders' equity	2,555,524		2,207,371
Total liabilities and shareholders' equity	$	4,507,228	$	3,657,266

ATWOOD OCEANICS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS



	Twelve Months Ended September 30,
(In thousands)	2014			2013			2012
Cash flows from operating activities:
Net income	$	340,822		$	350,224		$	272,171
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	147,358			117,510			70,599
Amortization	8,634			5,224			(712		)
Provision for doubtful accounts and inventory obsolescence	2,826			5,582			765
Deferred income tax benefit	(1,270		)	(816		)	(989		)
Share-based compensation expense	14,691			14,231			10,402
(Gain) loss on sale of assets	(34,139		)	971			457
Change in assets and liabilities:
Accounts receivable	(43,965		)	(36,330		)	(80,013		)
Income tax receivable	(1,588		)	1,078			(119		)
Inventories of materials and supplies	(17,220		)	(43,254		)	(23,395		)
Prepaid expenses, deferred costs and other current assets	15,463			(712		)	(6,386		)
Deferred costs and other assets	(11,682		)	(19,700		)	(32,597		)
Accounts payable	1,932			11,440			27,536
Accrued liabilities	1,647			1,430			(7,096		)
Premium on Senior Notes	—			8,500
Income tax payable	(2,320		)	5,863			1,250
Deferred credits and other liabilities	21,431			10,869			23,730
Net cash provided by operating activities	442,620			432,110			255,603

Cash flows from investing activities:
Capital expenditures	(975,731		)	(745,223		)	(785,083		)
Proceeds from sale of assets	61,516			147			7,646
Net cash used in investing activities	(914,215		)	(745,076		)	(777,437		)

Cash flows from financing activities:
Proceeds from issuance of long term debt	700,000			600,000			760,000
Principal payments on long-term debt	(220,000		)	(175,000		)	(450,000		)
Repayments on short-term debt	(13,979		)	2,923			(313		)
Repurchase and retirement of common shares	—			(107,260		)	—
Proceeds from exercise of stock options	3,688			9,224			5,546
Debt issuance costs paid	(6,804		)	(6,022		)	(10,530		)
Net cash provided by financing activities	462,905			323,865			304,703
Net increase (decrease) in cash and cash equivalents	(8,690		)	10,899			(217,131		)
Cash at beginning of period	88,770			77,871			295,002
Cash at end of period	$	80,080		$	88,770		$	77,871
Cash paid during the period for:
Domestic and foreign income taxes	$	55,777		$	49,105		$	49,636
Interest, net of amounts capitalized	35,265			21,200			1,849
Non-cash activities:
Increase (decrease in accrued liabilities related to capital expenditures	(2,804		)	795			(56,965		)
Dividends Payable	16,090			—			—
Increase in short-term debt related to funding of insurance policies	17,793			—			—

Atwood Oceanics 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 13 mobile offshore drilling units and is constructing three 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."

As part of our ongoing commitment to our shareholders, Atwood Oceanics uses a variety of Social Networks sites to disseminate company information. For a full list of the official Social Media pages for Atwood Oceanics, please visit the Social Media Disclaimer page of our IR site at: http://ir.atwd.com/GenPage.aspx?IID=4010374&GKP=210376.

Contact: Mark L. Mey

(281) 749-7902

ATWOOD OCEANICS INC - FORM 8-K - EX-99.1 - FINANCIAL STATEMENTS - November 10, 2014

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