Rowan Reports Substantially Improved Financial Results

Apr 11, 2001, 01:00 ET from Rowan Companies, Inc.

    HOUSTON, April 11 /PRNewswire/ -- For the three months ended
 March 31, 2001, Rowan Companies, Inc. (NYSE:   RDC) generated net income of
 $31.7 million, or $.33 per share, on revenues of $193.5 million, compared to
 net income of $6.1 million, or $.07 per share, on revenues of $127.7 million
 in the first quarter of 2000.
     C. R. Palmer, Chairman and Chief Executive Officer, commented, "First
 quarter financial results met our expectations as increased demand for both
 offshore and land rigs yielded excellent utilization and higher day rates.
 Rowan's offshore rig utilization was 97% during the first quarter of 2001,
 versus 86% in the first quarter of 2000, and our average offshore day rate of
 $58,300 increased by $2,500, or 5%, over the fourth quarter of 2000 and by
 $15,700, or 37%, over the prior-year period.  Land rig utilization was 76%,
 versus 38% in the first quarter of 2000, and our average land rig day rate of
 $11,200 increased by $1,700, or 18%, over the fourth quarter of 2000 and by
 $3,000, or 37%, over the prior-year period.
     "There is a 'street rumor' that Rowan recently signed contracts for a land
 rig at $20,000 per day and for a 116-C jack-up rig in the Gulf of Mexico at
 $70,000 per day.  As Dizzy Dean said, 'If you done it, it ain't bragging'.
     "As indicated in our recent annual report, our business outlook continues
 to be favorable in each of our operating divisions -- drilling, manufacturing
 and aviation.  Second quarter earnings should be around 45 cents per share --
 mas o menos.
     "The Gorilla V contract dispute with BP continues.  The London trial
 commenced on January 22, 2001 and we believe final arguments will be completed
 during the second quarter.  The Harris County, Texas trial on the tort issues,
 tentatively set for April 16, 2001, has been re-set by the judge, again on a
 tentative basis, for November 26, 2001.  Our confidence in the final outcome
 increases week-by-week!"
     Rowan Companies, Inc. is a major provider of international and domestic
 offshore contract drilling and aviation services.  The Company also operates a
 mini-steel mill, a manufacturing facility that produces heavy equipment for
 the mining, timber and transportation industries, and a marine division that
 has designed or built about one-third of all mobile offshore jack-up drilling
 rigs, including all 22 operated by the Company.  The Company's stock is traded
 on the New York Stock Exchange and the Pacific Stock Exchange.  Common Stock
 trading symbol: RDC.  Contact: William C. Provine, Vice-President - Investor
 Relations, 713-960-7575.  Website:  www.rowancompanies.com
     This report contains forward looking statements within the meaning of the
 Private Securities Litigation Reform Act of 1995, including, without
 limitation, statements as to the expectations, beliefs and future expected
 financial performance of the Company that are based on current expectations
 and are subject to certain risks, trends and uncertainties that could cause
 actual results to differ materially from those projected by the Company.
 Among the factors that could cause actual results to differ materially include
 oil and natural gas prices, the level of offshore expenditures by energy
 companies, the general economy, including inflation, weather conditions in the
 Company's principal operating areas and environmental and other laws and
 regulations.  Other relevant factors have been disclosed in the Company's
 filings with the U. S. Securities and Exchange Commission.
 
 
                        CONDENSED CONSOLIDATED BALANCE SHEET
                          Unaudited (Dollars In Thousands)
 
                                                              MARCH 31
                                                        2001          2000
                      ASSETS
 
     Cash and short-term investments                  $211,685      $197,487
     Accounts receivable                               145,368        87,387
     Inventories                                       130,433       109,398
     Other current assets                                8,489        22,687
          Total current assets                         495,975       416,959
     Property, plant and equipment - net             1,225,542     1,085,965
     Other assets                                       12,410        13,473
          TOTAL                                     $1,733,927    $1,516,397
 
       LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current maturities of long-term debt              $28,008       $27,638
     Other current liabilities                          82,760        61,614
          Total current liabilities                    110,768        89,252
     Long-term debt                                    381,323       315,105
     Other liabilities                                 154,931       132,607
     Stockholders' equity                            1,086,905       979,433
          TOTAL                                     $1,733,927    $1,516,397
 
                        CONSOLIDATED STATEMENT OF OPERATIONS
             Unaudited (Dollars In Thousands Except Per Share Amounts)
 
                                                        FOR THE THREE MONTHS
                                                           ENDED MARCH 31
                                                         2001          2000
     REVENUES:
        Drilling services                             $140,466       $81,924
        Manufacturing sales and services                26,615        23,929
        Aviation services                               26,433        21,877
          TOTAL                                        193,514       127,730
     COSTS AND EXPENSES:
        Drilling services                               70,534        55,765
        Manufacturing sales and services                25,348        20,570
        Aviation services                               24,516        23,576
        Depreciation and amortization                   16,194        12,766
        General and administrative                       6,389         4,848
          TOTAL                                        142,981       117,525
     INCOME FROM OPERATIONS                             50,533        10,205
     OTHER INCOME (EXPENSE):
        Interest expense                                (6,688)       (6,520)
        Less interest capitalized                        2,631         4,178
        Interest income                                  2,986         1,811
        Other - net                                         95            66
          OTHER INCOME (EXPENSE) - NET                    (976)         (465)
     INCOME BEFORE INCOME TAXES                         49,557         9,740
        Provision for income taxes                      17,841         3,636
     NET INCOME                                        $31,716        $6,104
     NET INCOME PER SHARE OF COMMON STOCK:
        Basic                                             $.34          $.07
        Diluted                                           $.33          $.07
     DILUTED SHARES                                     96,279        89,569
 
 
                               ROWAN COMPANIES, INC.
                   CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                              Unaudited (In Thousands)
 
                                                        FOR THE THREE MONTHS
                                                           ENDED MARCH 31
                                                         2001          2000
     CASH PROVIDED BY (USED IN):
        Operations:
           Net income                                  $31,716        $6,104
           Adjustments to reconcile net income
            to net cash provided by operations:
              Depreciation and amortization             16,194        12,766
              Deferred income taxes                     10,781         3,199
              Other - net                                1,513         2,656
           Net changes in current assets
            and liabilities                              7,454         3,228
           Net changes in other noncurrent
            assets and liabilities                        (794)         (127)
        Net cash provided by operations                 66,864        27,826
        Investing activities:
           Property, plant and equipment additions     (59,570)      (72,706)
           Purchase of pump companies, net
            of cash acquired                                          (7,245)
           Proceeds from disposals of property,
            plant and equipment                          1,831           840
        Net cash used in investing activities          (57,739)      (79,111)
        Financing activities:
           Proceeds from borrowings                     23,615        30,321
           Repayments of borrowings                    (14,504)     (116,378)
           Proceeds from common stock offering,
            net of issue costs                                       246,760
           Proceeds from stock option and
            convertible debenture plans                    621         1,014
        Net cash provided by financing activities        9,732       161,717
 
     INCREASE IN CASH AND CASH EQUIVALENTS              18,857       110,432
     CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD    192,828        87,055
     CASH AND CASH EQUIVALENTS, END OF PERIOD         $211,685      $197,487
 
 

SOURCE Rowan Companies, Inc.
    HOUSTON, April 11 /PRNewswire/ -- For the three months ended
 March 31, 2001, Rowan Companies, Inc. (NYSE:   RDC) generated net income of
 $31.7 million, or $.33 per share, on revenues of $193.5 million, compared to
 net income of $6.1 million, or $.07 per share, on revenues of $127.7 million
 in the first quarter of 2000.
     C. R. Palmer, Chairman and Chief Executive Officer, commented, "First
 quarter financial results met our expectations as increased demand for both
 offshore and land rigs yielded excellent utilization and higher day rates.
 Rowan's offshore rig utilization was 97% during the first quarter of 2001,
 versus 86% in the first quarter of 2000, and our average offshore day rate of
 $58,300 increased by $2,500, or 5%, over the fourth quarter of 2000 and by
 $15,700, or 37%, over the prior-year period.  Land rig utilization was 76%,
 versus 38% in the first quarter of 2000, and our average land rig day rate of
 $11,200 increased by $1,700, or 18%, over the fourth quarter of 2000 and by
 $3,000, or 37%, over the prior-year period.
     "There is a 'street rumor' that Rowan recently signed contracts for a land
 rig at $20,000 per day and for a 116-C jack-up rig in the Gulf of Mexico at
 $70,000 per day.  As Dizzy Dean said, 'If you done it, it ain't bragging'.
     "As indicated in our recent annual report, our business outlook continues
 to be favorable in each of our operating divisions -- drilling, manufacturing
 and aviation.  Second quarter earnings should be around 45 cents per share --
 mas o menos.
     "The Gorilla V contract dispute with BP continues.  The London trial
 commenced on January 22, 2001 and we believe final arguments will be completed
 during the second quarter.  The Harris County, Texas trial on the tort issues,
 tentatively set for April 16, 2001, has been re-set by the judge, again on a
 tentative basis, for November 26, 2001.  Our confidence in the final outcome
 increases week-by-week!"
     Rowan Companies, Inc. is a major provider of international and domestic
 offshore contract drilling and aviation services.  The Company also operates a
 mini-steel mill, a manufacturing facility that produces heavy equipment for
 the mining, timber and transportation industries, and a marine division that
 has designed or built about one-third of all mobile offshore jack-up drilling
 rigs, including all 22 operated by the Company.  The Company's stock is traded
 on the New York Stock Exchange and the Pacific Stock Exchange.  Common Stock
 trading symbol: RDC.  Contact: William C. Provine, Vice-President - Investor
 Relations, 713-960-7575.  Website:  www.rowancompanies.com
     This report contains forward looking statements within the meaning of the
 Private Securities Litigation Reform Act of 1995, including, without
 limitation, statements as to the expectations, beliefs and future expected
 financial performance of the Company that are based on current expectations
 and are subject to certain risks, trends and uncertainties that could cause
 actual results to differ materially from those projected by the Company.
 Among the factors that could cause actual results to differ materially include
 oil and natural gas prices, the level of offshore expenditures by energy
 companies, the general economy, including inflation, weather conditions in the
 Company's principal operating areas and environmental and other laws and
 regulations.  Other relevant factors have been disclosed in the Company's
 filings with the U. S. Securities and Exchange Commission.
 
 
                        CONDENSED CONSOLIDATED BALANCE SHEET
                          Unaudited (Dollars In Thousands)
 
                                                              MARCH 31
                                                        2001          2000
                      ASSETS
 
     Cash and short-term investments                  $211,685      $197,487
     Accounts receivable                               145,368        87,387
     Inventories                                       130,433       109,398
     Other current assets                                8,489        22,687
          Total current assets                         495,975       416,959
     Property, plant and equipment - net             1,225,542     1,085,965
     Other assets                                       12,410        13,473
          TOTAL                                     $1,733,927    $1,516,397
 
       LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current maturities of long-term debt              $28,008       $27,638
     Other current liabilities                          82,760        61,614
          Total current liabilities                    110,768        89,252
     Long-term debt                                    381,323       315,105
     Other liabilities                                 154,931       132,607
     Stockholders' equity                            1,086,905       979,433
          TOTAL                                     $1,733,927    $1,516,397
 
                        CONSOLIDATED STATEMENT OF OPERATIONS
             Unaudited (Dollars In Thousands Except Per Share Amounts)
 
                                                        FOR THE THREE MONTHS
                                                           ENDED MARCH 31
                                                         2001          2000
     REVENUES:
        Drilling services                             $140,466       $81,924
        Manufacturing sales and services                26,615        23,929
        Aviation services                               26,433        21,877
          TOTAL                                        193,514       127,730
     COSTS AND EXPENSES:
        Drilling services                               70,534        55,765
        Manufacturing sales and services                25,348        20,570
        Aviation services                               24,516        23,576
        Depreciation and amortization                   16,194        12,766
        General and administrative                       6,389         4,848
          TOTAL                                        142,981       117,525
     INCOME FROM OPERATIONS                             50,533        10,205
     OTHER INCOME (EXPENSE):
        Interest expense                                (6,688)       (6,520)
        Less interest capitalized                        2,631         4,178
        Interest income                                  2,986         1,811
        Other - net                                         95            66
          OTHER INCOME (EXPENSE) - NET                    (976)         (465)
     INCOME BEFORE INCOME TAXES                         49,557         9,740
        Provision for income taxes                      17,841         3,636
     NET INCOME                                        $31,716        $6,104
     NET INCOME PER SHARE OF COMMON STOCK:
        Basic                                             $.34          $.07
        Diluted                                           $.33          $.07
     DILUTED SHARES                                     96,279        89,569
 
 
                               ROWAN COMPANIES, INC.
                   CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                              Unaudited (In Thousands)
 
                                                        FOR THE THREE MONTHS
                                                           ENDED MARCH 31
                                                         2001          2000
     CASH PROVIDED BY (USED IN):
        Operations:
           Net income                                  $31,716        $6,104
           Adjustments to reconcile net income
            to net cash provided by operations:
              Depreciation and amortization             16,194        12,766
              Deferred income taxes                     10,781         3,199
              Other - net                                1,513         2,656
           Net changes in current assets
            and liabilities                              7,454         3,228
           Net changes in other noncurrent
            assets and liabilities                        (794)         (127)
        Net cash provided by operations                 66,864        27,826
        Investing activities:
           Property, plant and equipment additions     (59,570)      (72,706)
           Purchase of pump companies, net
            of cash acquired                                          (7,245)
           Proceeds from disposals of property,
            plant and equipment                          1,831           840
        Net cash used in investing activities          (57,739)      (79,111)
        Financing activities:
           Proceeds from borrowings                     23,615        30,321
           Repayments of borrowings                    (14,504)     (116,378)
           Proceeds from common stock offering,
            net of issue costs                                       246,760
           Proceeds from stock option and
            convertible debenture plans                    621         1,014
        Net cash provided by financing activities        9,732       161,717
 
     INCREASE IN CASH AND CASH EQUIVALENTS              18,857       110,432
     CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD    192,828        87,055
     CASH AND CASH EQUIVALENTS, END OF PERIOD         $211,685      $197,487
 
 SOURCE  Rowan Companies, Inc.