Atwood Oceanics Announces Fourth Quarter Earnings

News provided by

Atwood Oceanics, Inc.

Nov 15, 2012, 04:48 ET

HOUSTON, Nov. 15, 2012 /PRNewswire/ -- 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."

SOURCE Atwood Oceanics, Inc.

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