Chiles Offshore Announces First Quarter Results

Apr 19, 2001, 01:00 ET from Chiles Offshore Inc.

    HOUSTON, April 19 /PRNewswire/ -- CHILES OFFSHORE INC. (Amex:   COD). For
 the quarter ended March 31, 2001, the Company reported net income of
 $5,300,000 or $0.30 per basic share on revenues of $18,610,000.  In the
 corresponding quarter ended March 31, 2000, the Company reported a net loss of
 $157,000 or $(0.03) per basic share on revenues of $8,529,000.
     For the quarter ended March 31, 2001, the rig fleet operated at 100%
 utilization and generated an average dayrate of $68,926, as compared to 100%
 utilization and an average dayrate of $46,863, for the corresponding quarter
 ended March 31, 2000.
     In July 2000, the Company entered into an agreement with Perforadora
 Central, S.A. de C.V. ("Perforadora"), a Mexican company, to acquire all of
 the equity of an entity that will own the ultra-premium jackup rig Tonala,
 which has been operated by the Company under a bareboat charter since the
 completion of construction of the rig in April 2000.  Under the terms of the
 agreement, the Company will issue 2,679,723 shares of common stock and assume
 debt guaranteed by the U.S. Maritime Administration ("Marad"), which was
 approximately $64.6 million on December 31, 2000.  Marad approved the
 agreement and assumption of debt in December 2000, and the Company expects the
 acquisition to close in the second quarter of 2001, at which time the bareboat
 charter expense will cease.
     In November 2000, the Company and Perforadora agreed to enter into an
 amendment to the original agreement whereby the Company will be treated, from
 a commercial standpoint, as if it would have owned the Tonala since the date
 of the original agreement.  Thus, the Company will be credited for cash flow
 received and charged for debt service payments made after July 2000.  In
 January 2001, the Company paid approximately $4.8 million of principal and
 interest related to the Tonala.
 
     William Chiles, Chief Executive Officer of the Company, commented:
     "Favorable oil and natural gas commodity prices continue to support robust
 business conditions for our customers, resulting in strong demand for the
 offshore contract drilling services.  During the first quarter of 2001, our
 rigs performed at 100% utilization and at dayrates near the high end of the
 range for our class of rigs.
     "Our two rigs currently under construction, the Chiles Discovery, at the
 Keppel FELS shipyard in Singapore, and the Chiles Galileo, at the AMFELS
 shipyard in Brownsville Texas, are presently 'on schedule' for delivery and
 commissioning during the second and third quarters of 2002, respectively."
     Chiles Offshore Inc. is a provider of contract drilling services to the
 worldwide offshore oil and gas industry.  The Company currently operates a
 fleet of three ultra-premium jackup rigs in the U.S. Gulf of Mexico, all of
 which have been delivered after May 1999.  The Company is presently building
 its fourth and fifth ultra-premium jackup rigs, which are expected to be
 delivered in the 2nd and 3rd quarters of 2002.  For further information,
 please contact Dick Fagerstal, Senior Vice President and Chief Financial
 Officer at (212) 621-9283 or (713) 339-3777 or via e-mail at:  dickf@ckor.com
 and / or visit our website at www.chilesoffshore.com.
     This release includes "forward-looking statements" intended to qualify for
 the safe harbor from liability established by the Private Securities
 Litigation Reform Act of 1995.  Statements herein that describe the company's
 business strategy, industry outlook, objectives, plans, intentions or goals
 also are forward-looking statements.  All such forward-looking statements are
 subject to certain risks and uncertainties that could cause actual results to
 differ materially from those in forward-looking statements, including risks
 associated with level of oil and natural gas exploration in the Gulf of
 Mexico, the availability of competitive drilling rigs and level of oil and
 natural gas prices.  We urge you to carefully consider the more detailed
 discussion of these risks and uncertainties under the heading "Forward-Looking
 Statements" in the company's Amendment No. 4 to Registration Statement on Form
 S-1.  The forward-looking statements included in this release are made only as
 of the date of this release and the company undertakes no obligation to
 publicly update the forward-looking statements to reflect subsequent events or
 circumstances.
 
 
                              CHILES OFFSHORE INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except share, per share and operating data and footnotes)
                                  (unaudited)
 
                                                        Three Months Ended
                                                            March 31,
                                                       2001           2000
 
     Operating revenue                                $18,610         $8,529
 
     Costs and expenses:
       operating                                        5,262          3,263
       bareboat charter                                 3,170            ---
       general and administrative                         700            709
       depreciation and amortization                    1,818          1,754
         total costs and expenses                      10,950          5,726
 
     Operating income (loss)                            7,660          2,803
 
     Other income (expense):
       interest expense - net of capitalized interest      (2)        (2,996)
       interest income                                    373             36
         total other income (expense)                     371         (2,960)
 
     Income (Loss) before income taxes                  8,031           (157)
 
     Provision for income tax                          (2,731)           ---
 
     Net income (loss)                                 $5,300          $(157)
 
 
     Earnings (Loss) per common share:
       basic                                            $0.30         $(0.03)
       diluted                                          $0.30         $(0.03)
 
     Weighted average common shares
      outstanding (A):
       basic                                       17,578,241      6,171,943
       diluted                                     17,681,872      6,171,943
 
 
     Operating data:
     EBITDA (B)                                        $9,478         $4,557
     Average dayrates (C)                             $68,926        $46,863
     Average utilization                                  100%           100%
 
     (A)  Pro-forma to reflect the initial public offering of shares on
          September 22, 2000.
     (B)  As used herein, "EBITDA" is operating income plus depreciation and
          amortization, before interest expense and applicable income taxes.
     (C)  Based on the rigs under operation including where applicable the
          Tonala.  The average dayrate is computed by dividing revenues from
          drilling contracts and mobilization by the number of days the rigs
          were under contract.
 
 
                              CHILES OFFSHORE INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (in thousands)
                                  (unaudited)
 
                                                     March 31,    December 31,
                                                       2001           2000
 
     Cash & cash equivalents                          $13,307        $47,145
     Other current assets                              15,304         15,517
       Total current assets                            28,611         62,662
     Property & equipment and other assets            272,169         237393
       Total assets                                  $300,780       $300,055
 
     Current liabilities                              $16,042        $23,348
     Long term debt                                       ---            ---
     Deferred income taxes                             31,589         28,858
     Stockholders' equity                             253,149        247,849
       Total liabilities and stockholders' equity    $300,780       $300,055
 
 
                              CHILES OFFSHORE INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
              (in thousands, except operating data and footnotes)
                                  (unaudited)
 
                  Supplementary Financial and Operational Data
 
                                                 Quarter Ended
                                   3/31/01    12/31/00    9/30/00     6/30/00
 
     Operating revenue             $18,610    $16,752     $16,216    $14,508
 
     Costs and expenses:
       operating                     5,262      5,481       5,081      4,713
       bareboat charter              3,170      2,747       2,468      1,461
       general and administrative      700        805         701        637
       depreciation and
        amortization                 1,818      1,852       1,801      1,769
         total costs and expenses   10,950     10,885      10,051      8,580
 
     Operating income                7,660      5,867       6,165      5,928
 
     Interest income (expense), net    371        801      (1,948)    (2,678)
 
     Income (Loss) before income
      taxes and extraordinary item   8,031      6,668       4,217      3,250
 
     Provision for income tax
      including change in tax
      filing status (D)             (2,731)    (2,267)    (27,614)       ---
 
     Income (Loss) before
      extraordinary item             5,300      4,401     (23,397)     3,250
 
     Extraordinary item, net of tax    ---        ---      (1,820)       ---
 
     Net income (loss)              $5,300     $4,401    $(25,217)    $3,250
 
 
     Operating data:
     EBITDA (E)                     $9,478     $7,719      $7,966     $7,697
     Average dayrates (F)          $68,926    $60,696     $58,754    $55,374
     Average utilization               100%       100%        100%       100%
     Rig operating days                270        276         276        262
 
 
     (D)  The Company incurred a one-time, non-cash deferred income tax charge
          of $27,462,000 related to the change in corporate structure on
          September 22, 2000.
     (E)  As used herein, "EBITDA" is operating income plus depreciation and
          amortization, before interest expense and applicable income taxes.
     (F)  Based on the rigs under operation including where applicable the
          Tonala.  The average dayrate is computed by dividing revenues from
          drilling contracts and mobilizations by the number of days under
          contract.
 
 
                              CHILES OFFSHORE INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (in thousands)
                                  (unaudited)
 
                  Supplemental Financial and Operational Data
 
                                               Quarter Ended
                               3/31/01    12/31/00      9/30/00       6/30/00
 
     Cash & cash equivalents   $13,307      $47,145      $67,658      $4,677
     Current assets            $28,611      $62,662      $77,792     $15,967
     Property & equipment and
      other assets            $272,169     $237,393     $206,323    $207,887
       Total assets           $300,780     $300,055     $284,115    $223,855
 
     Current liabilities       $16,042      $23,348      $12,331     $11,394
     Long term debt               $---         $---         $---    $102,000
     Deferred income taxes     $31,589      $28,858      $26,591        $---
     Total stockholders'
      equity                  $253,149     $247,849     $245,193    $110,461
       Total liabilities and
        stockholders' equity  $300,780     $300,055     $284,115    $223,855
 
 
                               Rig Fleet Summary
 
      Rig Fleet:        Design     Delivery  Location     Status       Customer
 
      Chiles Columbus   LeTourneau  2Q 1999  US Gulf of   Working       Apache
                        Super 116            Mexico
      Chiles Magellan   LeTourneau  4Q 1999  US Gulf of   Working       Shell
                        Super 116            Mexico
      Tonala            LeTourneau  2Q 2000  US Gulf of   Working       Chevron
                        Super 116            Mexico
      Chiles Discovery  KFELS Mod   2Q 2002  Singapore    Construction  ---
                        V "B"
      Chiles Galileo    KFELS Mod   3Q 2002  Brownsville  Construction  ---
                        V "B"
 
 

SOURCE Chiles Offshore Inc.
    HOUSTON, April 19 /PRNewswire/ -- CHILES OFFSHORE INC. (Amex:   COD). For
 the quarter ended March 31, 2001, the Company reported net income of
 $5,300,000 or $0.30 per basic share on revenues of $18,610,000.  In the
 corresponding quarter ended March 31, 2000, the Company reported a net loss of
 $157,000 or $(0.03) per basic share on revenues of $8,529,000.
     For the quarter ended March 31, 2001, the rig fleet operated at 100%
 utilization and generated an average dayrate of $68,926, as compared to 100%
 utilization and an average dayrate of $46,863, for the corresponding quarter
 ended March 31, 2000.
     In July 2000, the Company entered into an agreement with Perforadora
 Central, S.A. de C.V. ("Perforadora"), a Mexican company, to acquire all of
 the equity of an entity that will own the ultra-premium jackup rig Tonala,
 which has been operated by the Company under a bareboat charter since the
 completion of construction of the rig in April 2000.  Under the terms of the
 agreement, the Company will issue 2,679,723 shares of common stock and assume
 debt guaranteed by the U.S. Maritime Administration ("Marad"), which was
 approximately $64.6 million on December 31, 2000.  Marad approved the
 agreement and assumption of debt in December 2000, and the Company expects the
 acquisition to close in the second quarter of 2001, at which time the bareboat
 charter expense will cease.
     In November 2000, the Company and Perforadora agreed to enter into an
 amendment to the original agreement whereby the Company will be treated, from
 a commercial standpoint, as if it would have owned the Tonala since the date
 of the original agreement.  Thus, the Company will be credited for cash flow
 received and charged for debt service payments made after July 2000.  In
 January 2001, the Company paid approximately $4.8 million of principal and
 interest related to the Tonala.
 
     William Chiles, Chief Executive Officer of the Company, commented:
     "Favorable oil and natural gas commodity prices continue to support robust
 business conditions for our customers, resulting in strong demand for the
 offshore contract drilling services.  During the first quarter of 2001, our
 rigs performed at 100% utilization and at dayrates near the high end of the
 range for our class of rigs.
     "Our two rigs currently under construction, the Chiles Discovery, at the
 Keppel FELS shipyard in Singapore, and the Chiles Galileo, at the AMFELS
 shipyard in Brownsville Texas, are presently 'on schedule' for delivery and
 commissioning during the second and third quarters of 2002, respectively."
     Chiles Offshore Inc. is a provider of contract drilling services to the
 worldwide offshore oil and gas industry.  The Company currently operates a
 fleet of three ultra-premium jackup rigs in the U.S. Gulf of Mexico, all of
 which have been delivered after May 1999.  The Company is presently building
 its fourth and fifth ultra-premium jackup rigs, which are expected to be
 delivered in the 2nd and 3rd quarters of 2002.  For further information,
 please contact Dick Fagerstal, Senior Vice President and Chief Financial
 Officer at (212) 621-9283 or (713) 339-3777 or via e-mail at:  dickf@ckor.com
 and / or visit our website at www.chilesoffshore.com.
     This release includes "forward-looking statements" intended to qualify for
 the safe harbor from liability established by the Private Securities
 Litigation Reform Act of 1995.  Statements herein that describe the company's
 business strategy, industry outlook, objectives, plans, intentions or goals
 also are forward-looking statements.  All such forward-looking statements are
 subject to certain risks and uncertainties that could cause actual results to
 differ materially from those in forward-looking statements, including risks
 associated with level of oil and natural gas exploration in the Gulf of
 Mexico, the availability of competitive drilling rigs and level of oil and
 natural gas prices.  We urge you to carefully consider the more detailed
 discussion of these risks and uncertainties under the heading "Forward-Looking
 Statements" in the company's Amendment No. 4 to Registration Statement on Form
 S-1.  The forward-looking statements included in this release are made only as
 of the date of this release and the company undertakes no obligation to
 publicly update the forward-looking statements to reflect subsequent events or
 circumstances.
 
 
                              CHILES OFFSHORE INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except share, per share and operating data and footnotes)
                                  (unaudited)
 
                                                        Three Months Ended
                                                            March 31,
                                                       2001           2000
 
     Operating revenue                                $18,610         $8,529
 
     Costs and expenses:
       operating                                        5,262          3,263
       bareboat charter                                 3,170            ---
       general and administrative                         700            709
       depreciation and amortization                    1,818          1,754
         total costs and expenses                      10,950          5,726
 
     Operating income (loss)                            7,660          2,803
 
     Other income (expense):
       interest expense - net of capitalized interest      (2)        (2,996)
       interest income                                    373             36
         total other income (expense)                     371         (2,960)
 
     Income (Loss) before income taxes                  8,031           (157)
 
     Provision for income tax                          (2,731)           ---
 
     Net income (loss)                                 $5,300          $(157)
 
 
     Earnings (Loss) per common share:
       basic                                            $0.30         $(0.03)
       diluted                                          $0.30         $(0.03)
 
     Weighted average common shares
      outstanding (A):
       basic                                       17,578,241      6,171,943
       diluted                                     17,681,872      6,171,943
 
 
     Operating data:
     EBITDA (B)                                        $9,478         $4,557
     Average dayrates (C)                             $68,926        $46,863
     Average utilization                                  100%           100%
 
     (A)  Pro-forma to reflect the initial public offering of shares on
          September 22, 2000.
     (B)  As used herein, "EBITDA" is operating income plus depreciation and
          amortization, before interest expense and applicable income taxes.
     (C)  Based on the rigs under operation including where applicable the
          Tonala.  The average dayrate is computed by dividing revenues from
          drilling contracts and mobilization by the number of days the rigs
          were under contract.
 
 
                              CHILES OFFSHORE INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (in thousands)
                                  (unaudited)
 
                                                     March 31,    December 31,
                                                       2001           2000
 
     Cash & cash equivalents                          $13,307        $47,145
     Other current assets                              15,304         15,517
       Total current assets                            28,611         62,662
     Property & equipment and other assets            272,169         237393
       Total assets                                  $300,780       $300,055
 
     Current liabilities                              $16,042        $23,348
     Long term debt                                       ---            ---
     Deferred income taxes                             31,589         28,858
     Stockholders' equity                             253,149        247,849
       Total liabilities and stockholders' equity    $300,780       $300,055
 
 
                              CHILES OFFSHORE INC.
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
              (in thousands, except operating data and footnotes)
                                  (unaudited)
 
                  Supplementary Financial and Operational Data
 
                                                 Quarter Ended
                                   3/31/01    12/31/00    9/30/00     6/30/00
 
     Operating revenue             $18,610    $16,752     $16,216    $14,508
 
     Costs and expenses:
       operating                     5,262      5,481       5,081      4,713
       bareboat charter              3,170      2,747       2,468      1,461
       general and administrative      700        805         701        637
       depreciation and
        amortization                 1,818      1,852       1,801      1,769
         total costs and expenses   10,950     10,885      10,051      8,580
 
     Operating income                7,660      5,867       6,165      5,928
 
     Interest income (expense), net    371        801      (1,948)    (2,678)
 
     Income (Loss) before income
      taxes and extraordinary item   8,031      6,668       4,217      3,250
 
     Provision for income tax
      including change in tax
      filing status (D)             (2,731)    (2,267)    (27,614)       ---
 
     Income (Loss) before
      extraordinary item             5,300      4,401     (23,397)     3,250
 
     Extraordinary item, net of tax    ---        ---      (1,820)       ---
 
     Net income (loss)              $5,300     $4,401    $(25,217)    $3,250
 
 
     Operating data:
     EBITDA (E)                     $9,478     $7,719      $7,966     $7,697
     Average dayrates (F)          $68,926    $60,696     $58,754    $55,374
     Average utilization               100%       100%        100%       100%
     Rig operating days                270        276         276        262
 
 
     (D)  The Company incurred a one-time, non-cash deferred income tax charge
          of $27,462,000 related to the change in corporate structure on
          September 22, 2000.
     (E)  As used herein, "EBITDA" is operating income plus depreciation and
          amortization, before interest expense and applicable income taxes.
     (F)  Based on the rigs under operation including where applicable the
          Tonala.  The average dayrate is computed by dividing revenues from
          drilling contracts and mobilizations by the number of days under
          contract.
 
 
                              CHILES OFFSHORE INC.
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (in thousands)
                                  (unaudited)
 
                  Supplemental Financial and Operational Data
 
                                               Quarter Ended
                               3/31/01    12/31/00      9/30/00       6/30/00
 
     Cash & cash equivalents   $13,307      $47,145      $67,658      $4,677
     Current assets            $28,611      $62,662      $77,792     $15,967
     Property & equipment and
      other assets            $272,169     $237,393     $206,323    $207,887
       Total assets           $300,780     $300,055     $284,115    $223,855
 
     Current liabilities       $16,042      $23,348      $12,331     $11,394
     Long term debt               $---         $---         $---    $102,000
     Deferred income taxes     $31,589      $28,858      $26,591        $---
     Total stockholders'
      equity                  $253,149     $247,849     $245,193    $110,461
       Total liabilities and
        stockholders' equity  $300,780     $300,055     $284,115    $223,855
 
 
                               Rig Fleet Summary
 
      Rig Fleet:        Design     Delivery  Location     Status       Customer
 
      Chiles Columbus   LeTourneau  2Q 1999  US Gulf of   Working       Apache
                        Super 116            Mexico
      Chiles Magellan   LeTourneau  4Q 1999  US Gulf of   Working       Shell
                        Super 116            Mexico
      Tonala            LeTourneau  2Q 2000  US Gulf of   Working       Chevron
                        Super 116            Mexico
      Chiles Discovery  KFELS Mod   2Q 2002  Singapore    Construction  ---
                        V "B"
      Chiles Galileo    KFELS Mod   3Q 2002  Brownsville  Construction  ---
                        V "B"
 
 SOURCE  Chiles Offshore Inc.