0000008411-14-000084.txt : 20140730 0000008411-14-000084.hdr.sgml : 20140730 20140730165819 ACCESSION NUMBER: 0000008411-14-000084 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20140730 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20140730 DATE AS OF CHANGE: 20140730 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ATWOOD OCEANICS INC CENTRAL INDEX KEY: 0000008411 STANDARD INDUSTRIAL CLASSIFICATION: DRILLING OIL & GAS WELLS [1381] IRS NUMBER: 741611874 STATE OF INCORPORATION: TX FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13167 FILM NUMBER: 141003464 BUSINESS ADDRESS: STREET 1: 15835 PARK TEN PL DR STREET 2: SUITE 200 CITY: HOUSTON STATE: TX ZIP: 77084 BUSINESS PHONE: 2817497845 MAIL ADDRESS: STREET 1: 15835 PARK TEN PL DR STREET 2: SUITE 200 CITY: HOUSTON STATE: TX ZIP: 77084 8-K 1 atw-201406308xk.htm 3RD QUARTER FY14 EARNINGS ATW-2014.06.30 8-K
 
 
 
 
 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549
____________

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

DATE OF EARLIEST EVENT REPORTED: July 30, 2014

ATWOOD OCEANICS, INC.
(Exact name of registrant as specified in its charter)

TEXAS
(State or other jurisdiction of incorporation or organization)

COMMISSION FILE NUMBER 1-13167

Internal Revenue Service – Employer Identification No. 74-1611874

15011 Katy Freeway, Suite 800
Houston, Texas, 77094
(Address of Principal Executive Offices)

(281) 749-7800
(Registrant’s Telephone Number,
Including Area Code)


____________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


ITEM 2.02    RESULTS OF OPERATIONS AND FINANCIAL CONDITION

Our press release dated July 30, 2014, concerning financial results for the third quarter ended June 30, 2014, furnished as Exhibit 99.1, is incorporated herein by reference.

ITEM 9.01     EXHIBITS
        
EXHIBIT 99.1 PRESS RELEASE DATED July 30, 2014



2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


ATWOOD OCEANICS, INC.
(Registrant)



/s/ Mark L. Mey
Mark L. Mey
Senior Vice President

DATE: July 30, 2014

3

EXHIBIT INDEX

EXHIBIT NO.
DESCRIPTION
99.1
Press Release dated July 30, 2014


4
 EX-99.1 2 exhibit991201406308-k.htm FINANCIAL STATEMENTS Exhibit 99.1 2014.06.30 8-K


EXHIBIT 99.1
Houston, Texas
July 30, 2014

FOR IMMEDIATE RELEASE - EARNINGS

ATWOOD OCEANICS, INC., announced today that the Company earned 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 compared to net income of $73.3 million or $1.13 per diluted share on revenues of $273.1 million for the quarter ended March 31, 2014 and 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. For the nine months ended June 30, 2014, the Company earned net income of $228.6 million or $3.52 per diluted share, on revenues of $850.6 million compared to net income of $248.3 million or $3.75 per diluted share, on revenues of $770.9 million for the nine months ended June 30, 2013.


 
For the Three Months Ended
 
 
 
(Unaudited)
 
 
(In thousands, except per share amounts)
June 30,
2014
 
March 31,
2014
 
June 30,
2013
Revenues
$
292,777

 
$
273,097

 
$
272,688

Income before Income Taxes
79,365

 
97,283

 
105,130

Provision for Income Taxes
(7,440
)
 
(23,983
)
 
(15,149
)
Net Income
$
71,925

 
$
73,300

 
$
89,981

 
 
 
 
 
 
Earnings per Common Share -
 
 
 
 
 
      Basic
$
1.12

 
$
1.14

 
$
1.38

      Diluted
$
1.11

 
$
1.13

 
$
1.37



 
For the Nine Months Ended
 
 
 
(Unaudited)
 
 
(In thousands, except per share amounts)
June 30,
2014
 
 
 
June 30,
2013
Revenues
$
850,580

 
 
 
$
770,942

Income before Income Taxes
270,908

 
 
 
286,649

Provision for Income Taxes
(42,286
)
 
 
 
(38,318
)
Net Income
$
228,622

 
 
 
$
248,331

 
 
 
 
 
 
Earnings per Common Share -
 
 
 
 
 
      Basic
$
3.56

 
 
 
$
3.79

      Diluted
$
3.52

 
 
 
$
3.75


5


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)
2014
 
2013
 
2014
 
2013
REVENUES:
 
 
 
 
 
 
 
Contract drilling
$
264,925

 
$
261,489

 
$
798,544

 
$
738,604

Revenues related to reimbursable expenses
27,852

 
11,199

 
52,036

 
32,338

Total revenues
292,777

 
272,688

 
850,580

 
770,942

 
 
 
 
 
 
 
 
COSTS AND EXPENSES:
 
 
 
 
 
 
 
Contract drilling
128,586

 
109,502

 
388,715

 
314,001

Reimbursable expenses
23,493

 
8,461

 
41,095

 
23,351

Depreciation
37,601

 
30,352

 
107,376

 
86,412

General and administrative
12,844

 
13,663

 
47,688

 
44,152

(Gain)/loss on sale of equipment
7

 
—

 
(34,072
)
 
—

Other, net
(212
)
 
(55
)
 
(1,815
)
 
(68
)
 
202,319

 
161,923

 
548,987

 
467,848

 
 
 
 
 
 
 
 
OPERATING INCOME
$
90,458

 
$
110,765

 
$
301,593

 
$
303,094

 
 
 
 
 
 
 
 
OTHER INCOME (EXPENSE)
 
 
 
 
 
 
 
Interest expense, net of capitalized interest
(11,219
)
 
(5,692
)
 
(30,932
)
 
(16,647
)
Interest Income
126

 
57

 
247

 
202

 
(11,093
)
 
(5,635
)
 
(30,685
)
 
(16,445
)
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
79,365

 
105,130

 
270,908

 
286,649

PROVISION FOR INCOME TAXES
7,440

 
15,149

 
42,286

 
38,318

NET INCOME
$
71,925

 
$
89,981

 
$
228,622

 
$
248,331

 
 
 
 
 
 
 
 
EARNINGS PER COMMON SHARE:
 
 
 
 
 
 
 
Basic
$
1.12

 
$
1.38

 
$
3.56

 
$
3.79

Diluted
$
1.11

 
$
1.37

 
$
3.52

 
$
3.75

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
Basic
64,309

 
65,062

 
64,204

 
65,441

Diluted
65,060

 
65,858

 
65,023

 
66,180


6


ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED ANALYSIS OF REVENUES AND DRILLING COSTS
 
 
REVENUES
 
Three Months Ended
 
Nine Months Ended
(In millions)
June 30,
2014
 
March 31,
2014
 
June 30,
2013
 
June 30,
2014
 
June 30,
2013
Ultra-Deepwater
$
118.4

 
$
119.9

 
$
87.1

 
$
325.6

 
$
246.1

Deepwater
69.8

 
64.0

 
102.2

 
241.3

 
306.2

Jackups
76.7

 
76.2

 
72.2

 
231.7

 
186.3

Reimbursable
27.9

 
13.0

 
11.2

 
52.0

 
32.4

 
$
292.8

 
$
273.1

 
$
272.7

 
$
850.6

 
$
771.0

 
DRILLING COSTS
 
Three Months Ended
 
Nine Months Ended
(In millions)
June 30,
2014
 
March 31,
2014
 
June 30,
2013
 
June 30,
2014
 
June 30,
2013
Ultra-Deepwater
$
44.2

 
$
45.9

 
$
33.9

 
$
125.2

 
$
93.7

Deepwater
51.5

 
56.6

 
42.8

 
157.0

 
127.2

Jackups
32.0

 
33.3

 
31.4

 
101.9

 
89.8

Reimbursable
23.5

 
9.2

 
8.5

 
41.1

 
23.3

Other
0.9

 
1.2

 
1.4

 
4.6

 
3.4

 
$
152.1

 
$
146.2

 
$
118.0

 
$
429.8

 
$
337.4


7


ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)
June 30,
2014
 
September 30,
2013
ASSETS
 
 
 
Cash and cash equivalents
$
119,161

 
$
88,770

Accounts receivable
204,079

 
199,689

Income tax receivable
6,097

 
4,672

Inventories of materials and supplies
123,184

 
121,833

Prepaid expenses and deferred costs
16,136

 
38,796

Total current assets
468,657

 
453,760

 
 
 
 
Property and equipment, net
3,586,049

 
3,164,724

 
 
 
 
Other receivables
11,831

 
11,831

Deferred costs and other assets
31,572

 
26,951

Deferred income taxes
518

 
—

Total assets
$
4,098,627

 
$
3,657,266

 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
Accounts payable
$
70,312

 
$
95,827

Accrued liabilities
21,977

 
17,653

Notes payable
—

 
8,071

Interest payable
18,564

 
7,945

Income tax payable
22,586

 
16,554

Deferred credits
4,300

 
10,822

Total current liabilities
137,739

 
156,872

 
 
 
 
Long-term debt
1,467,406

 
1,263,232

Deferred income taxes
354

 
485

Deferred credits
4,588

 
1,176

Other
38,099

 
28,130

Total long-term liabilities
1,510,447

 
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 64,338 issued and outstanding at June 30, 2014 and 90,000 shares authorized with 64,057 issued and outstanding at September 30, 2013

64,338

 
64,057

Paid-in capital
197,501

 
183,390

Retained earnings
2,190,027

 
1,961,405

Accumulated other comprehensive loss
(1,425
)
 
(1,481
)
Total shareholders' equity
2,450,441

 
2,207,371

Total liabilities and shareholders' equity
$
4,098,627

 
$
3,657,266




8


ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
 
Nine Months Ended June 30,
(In thousands)
2014
 
2013
Cash flows from operating activities:
 
 
 
Net income
$
228,622

 
$
248,331

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation
107,376

 
86,412

Amortization of debt issuance costs and bond premium
3,389

 
3,083

Amortization of deferred items
2,487

 
1,227

Provision for doubtful accounts
679

 
3,510

Provision for inventory obsolescence
1,226

 
1,530

Deferred income tax benefit
(649
)
 
(605
)
Share-based compensation expense
10,924

 
10,418

Gain on sale of assets
(34,072
)
 
—

Other, net
1,990

 
(67
)
Change in assets and liabilities:
 
 
 
Accounts receivable
(5,069
)
 
(18,297
)
Income tax receivable
(1,425
)
 
(1,391
)
Inventory
(8,816
)
 
(22,065
)
Prepaid expenses
14,100

 
12,788

Deferred costs and other assets
(10,512
)
 
(9,519
)
Accounts payable
(11,303
)
 
(10,970
)
Accrued liabilities
15,127

 
(6,745
)
Income tax payable
6,032

 
6,311

Deferred credits and other liabilities
21,141

 
9,989

Net cash provided by operating activities
341,247

 
322,440

 
 
 
 
Cash flows from investing activities:
 
 
 
Capital expenditures
(564,119
)
 
(569,696
)
Proceeds from sale of assets
59,516

 
129

Net cash used in investing activities
(504,603
)
 
(569,567
)
 
 
 
 
Cash flows from financing activities:
 
 
 
Proceeds from issuance of bonds
—

 
200,000

Proceeds from bank credit facilities
370,000

 
400,000

Principal payments on bank credit facilities
(165,000
)
 
(100,000
)
Principal payments on notes payable
(8,071
)
 
(5,148
)
Repurchase and retirement of common shares
—

 
(107,260
)
Proceeds from exercise of stock options
3,468

 
6,451

Debt issuance costs paid
(6,650
)
 
(2,910
)
Net cash provided by financing activities
193,747

 
391,133

Net increase in cash and cash equivalents
$
30,391

 
$
144,006

Cash and cash equivalents, at beginning of period
$
88,770

 
$
77,871

Cash and cash equivalents, at end of period
$
119,161

 
$
221,877

 
 
 
 
Non-cash activities:
 
 
 
Changes in accounts payable and accrued liabilities related to capital expenditures
$
(13,573
)
 
$
(15,011
)



9


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 12 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


10