-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Me56jWknUyu2GfjbZd8BJWoj42Gsrx1s1jNEJhGAFaUpyKlmtKukmFD3PKROcu4E /B98jVVdkiJkti2xuo2/Bg== 0000899243-98-001224.txt : 19980626 0000899243-98-001224.hdr.sgml : 19980626 ACCESSION NUMBER: 0000899243-98-001224 CONFORMED SUBMISSION TYPE: 10-K/A PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980625 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MCDERMOTT INTERNATIONAL INC CENTRAL INDEX KEY: 0000708819 STANDARD INDUSTRIAL CLASSIFICATION: ENGINES & TURBINES [3510] IRS NUMBER: 720593134 STATE OF INCORPORATION: R1 FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-K/A SEC ACT: SEC FILE NUMBER: 001-08430 FILM NUMBER: 98654419 BUSINESS ADDRESS: STREET 1: 1450 POYDRAS ST CITY: NEW ORLEANS STATE: LA ZIP: 70112 BUSINESS PHONE: 5045875400 MAIL ADDRESS: STREET 1: 1450 POYDRAS ST CITY: NEW ORLEANS STATE: LA ZIP: 70161 10-K/A 1 AMENDMENT NO. 1 TO FORM 10-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) FORM 10-K/A-1 [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 1998 OR [_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to ________________ Commission File Number 1-8430 McDERMOTT INTERNATIONAL, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) REPUBLIC OF PANAMA 72-0593134 - -------------------------------------------------------------------------------- (State or Other Jurisdiction of (I.R.S. Employer Incorporation or Organization) Identification No.) 1450 POYDRAS STREET NEW ORLEANS, LOUISIANA 70112-6050 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, including Area Code (504) 587-5400 Securities Registered Pursuant to Section 12(b) of the Act: Name of each Exchange Title of each class on which registered Common Stock, $1.00 par value New York Stock Exchange Rights to Purchase Preferred Stock New York Stock Exchange (Currently Traded with Common Stock) Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities and Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES [X] NO [_] Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [_] The aggregate market value of voting Common stock held by non-affiliates of the registrant was $2,628,588,072 as of May 14, 1998. The number of shares outstanding of the Company's Common Stock at May 14, 1998 was 60,710,803. DOCUMENTS INCORPORATED BY REFERENCE Portions of the Proxy Statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A under the Securities Exchange Act of 1934 in connection with the Company's 1998 Annual Meeting of Stockholders are incorporated by reference into Part III hereof. McDERMOTT INTERNATIONAL, INC. INDEX TO FINANCIAL STATEMENT SCHEDULES AND EXHIBITS Page Report of Independent Auditors 2 Financial Statement Schedule Covered by Report of Independent Auditors: I Condensed Financial Information of Registrant 3 All schedules other than the above have been omitted because they are not required or the information is included in the Consolidated Financial Statements or Notes thereto. Signature of Registrant 9 Exhibit Index - ------------- 21 Significant Subsidiares of the Registrant 27 Financial Data Schedule 27 Financial Data Schedule 99 Supplementary Financial Information on Panamanian Securities Regulations -1- REPORT OF INDEPENDENT AUDITORS The Board of Directors and Stockholders McDermott International, Inc. We have audited the consolidated financial statements of McDermott International, Inc. as of March 31, 1998 and 1997, and for each of the three years in the period ended March 31, 1998, and have issued our report thereon dated May 19, 1998, except for the fifth and sixth paragraphs of Note 11, as to which the date is June 1, 1998. Our audits also included the financial statement schedule listed in the Index to Financial Statement Schedules and Exhibits in this Form 10-K/A-1. This schedule is the responsibility of the Company's management. Our responsibility is to express an opinion based on our audits. In our opinion, the financial statement schedule referred to above, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein. ERNST & YOUNG LLP New Orleans, Louisiana May 19, 1998 -2- SCHEDULE I MCDERMOTT INTERNATIONAL, INC. (PARENT COMPANY ONLY) BALANCE SHEET MARCH 31, 1998 AND 1997 ASSETS - ------ 1998 1997 ---- ---- (In thousands) Current Assets: Cash and cash equivalents $ 10,272 $ 43 Accounts receivable - trade 561 337 Accounts receivable - other 1,993 1,164 Accounts receivable from subsidiaries 107,305 179,399 Other current assets 3,474 3,228 - ------------------------------------------------------------------ Total Current Assets 123,605 184,171 - ------------------------------------------------------------------ Investments in Subsidiaries and Other Investees, at Equity 1,320,178 1,102,496 - ------------------------------------------------------------------ Property, Plant and Equipment, at Cost: Buildings 3,328 3,328 Machinery and equipment 6,745 6,834 - ------------------------------------------------------------------ 10,073 10,162 Less accumulated depreciation 10,066 10,116 - ------------------------------------------------------------------ Net Property, Plant and Equipment 7 46 - ------------------------------------------------------------------ Investments in Debt Securities 38,730 - - ------------------------------------------------------------------ Other Assets 54,641 39,634 - ------------------------------------------------------------------ TOTAL $1,537,161 $1,326,347 ================================================================== See accompanying notes to condensed financial information. -3- Continued LIABILITIES AND STOCKHOLDERS' EQUITY - ------------------------------------ 1998 1997 ---- ---- (In thousands) Current Liabilities: Current maturities of long-term debt $ 12,200 $ 22,600 Accounts payable 632 1,500 Accounts payable to subsidiaries 819,254 813,804 Accrued liabilities - other 11,551 24,486 Income taxes 2,888 2,362 - -------------------------------------------------------------------- Total Current Liabilities 846,525 864,752 - -------------------------------------------------------------------- Long-Term Debt - 12,200 - -------------------------------------------------------------------- Other Liabilities 10,863 12,394 - -------------------------------------------------------------------- Contingencies - -------------------------------------------------------------------- Stockholders' Equity: Preferred stock 2,875 2,875 Common stock 56,608 54,937 Capital in excess of par value 1,012,338 962,445 Deficit (341,916) (538,163) Minimum pension liability (4,730) (2,148) Net unrealized loss on investments 675 (4,132) Currency translation adjustments (42,502) (38,813) Treasury stock (3,575) - - -------------------------------------------------------------------- Total Stockholders' Equity 679,773 437,001 - -------------------------------------------------------------------- TOTAL $ 1,537,161 $ 1,326,347 ==================================================================== -4- SCHEDULE I MCDERMOTT INTERNATIONAL, INC. (PARENT COMPANY ONLY) STATEMENT OF INCOME (LOSS) FOR THE THREE FISCAL YEARS ENDED MARCH 31, 1998 1998 1997 1996 ---- ---- ---- (In thousands) Revenues $ - $ - $ 840 - ----------------------------------------------------------------------------- Costs and Expenses: Cost of operations (excluding depreciation and amortization) 640 16,072 2 Depreciation and amortization 2,495 761 3,067 Selling, general and administrative expenses 1,246 3,284 2,949 - ----------------------------------------------------------------------------- 4,381 20,117 6,018 Gain (Loss) on Asset Disposals-net 2 (24) - - ----------------------------------------------------------------------------- Operating Loss before Equity in Income (Loss) of Investees (4,379) (20,141) (5,178) Equity in Income (Loss) of Subsidiaries and Other Investees 221,974 (190,569) 16,314 - ----------------------------------------------------------------------------- Operating Income (Loss) 217,595 (210,710) 11,136 - ----------------------------------------------------------------------------- Other Income (Expense): Interest income 1,870 6,729 21,913 Interest expense (4,728) (5,225) (12,801) Other - net 953 1,871 377 - ----------------------------------------------------------------------------- (1,905) 3,375 9,489 - ----------------------------------------------------------------------------- Income (Loss) before Provision for (Benefit from) Income Taxes 215,690 (207,335) 20,625 Benefit from Income Taxes - (1,230) - - ----------------------------------------------------------------------------- Net Income (Loss) $215,690 $(206,105) $20,625 ============================================================================= See accompanying notes to condensed financial information. -5- Schedule I McDERMOTT INTERNATIONAL, INC. (PARENT COMPANY ONLY) STATEMENT OF CASH FLOWS FOR THE THREE FISCAL YEARS ENDED MARCH 31, 1998 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1998 1997 1996 ---- ---- ---- (In thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ 215,690 $(206,105) $20,625 - ------------------------------------------------------------------------------- Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 2,495 761 3,067 Equity in income or loss of subsidiaries and other investees, less dividends (214,774) 207,769 4,936 (Gain) loss on asset disposals-net (2) 24 - Benefit from deferred taxes - (1,230) - Other 10,419 7,385 8,349 Changes in assets and liabilities: Accounts and notes receivable 27,398 153,023 300,318 Accounts payable 4,582 (196,099) (249,706) Income taxes 526 (4,212) (195) Other, net (26,909) (6,897) (5,953) - ------------------------------------------------------------------------------- NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 19,425 (45,581) 81,441 - ------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from asset disposals 2 6 - Purchases of property, plant and equipment - 2 - Investments in subsidiaries - (68,162) (100) Maturities of debt securities 5,000 - - Decrease in loans to subsidiaries - 231,000 - - ------------------------------------------------------------------------------- NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 5,002 162,846 (100) - ------------------------------------------------------------------------------- -6- CONTINUED INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1998 1997 1996 ---- ---- ---- (In thousands) CASH FLOWS FROM FINANCING ACTIVITIES: Payment of long-term debt $ (22,600) $ (20,500) $ (18,500) Issuance of common stock 31,431 565 1,802 Decrease in loans from subsidiaries - (45,455) (2,329) Dividends paid (19,367) (51,947) (62,411) Purchase of McDermott International, Inc. stock (3,662) - - - ------------------------------------------------------------------------------- NET CASH USED IN FINANCING ACTIVITIES (14,198) (117,337) (81,438) - ------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 10,229 (72) (97) - ------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 43 115 212 - ------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS AT END OF YEAR $ 10,272 $ 43 $ 115 =============================================================================== SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest, including intercompany interest (net of amount capitalized) $ 5,317 $ 5,778 $ 13,267 Income taxes, net of refunds $ - $ - $ 199 =============================================================================== See accompanying notes to condensed financial information. -7- SCHEDULE I McDERMOTT INTERNATIONAL, INC. (PARENT COMPANY ONLY) NOTES TO CONDENSED FINANCIAL INFORMATION FOR THE THREE FISCAL YEARS ENDED MARCH 31, 1998 NOTE 1 - BASIS OF PRESENTATION The accompanying financial statements have been prepared to present the unconsolidated financial position, results of operations and cash flows of McDermott International, Inc. (Parent Company Only). Investments in subsidiaries and other investees are stated at cost plus equity in undistributed earnings from date of acquisition. These Parent Company Only financial statements should be read in conjunction with McDermott International, Inc.'s consolidated financial statements. NOTE 2 - LONG-TERM DEBT Long-term debt consists of: 1998 1997 ---- ---- (In thousands) 10.375% Note payable due 1998 (Secured) $12,200 $34,800 Less: Amounts due within one year 12,200 22,600 ------- ------- $ - $12,200 ======= ======= NOTE 3 - CONTINGENCIES McDermott International, Inc. has guaranteed the indebtedness of certain of its subsidiaries and other investees. At March 31, 1998, these guarantees included $16,869,000 of loans to and $5,289,000 of standby letters of credit issued by certain subsidiaries and other investees. At March 31, 1998, McDermott International, Inc. had pledged all of the fair value of its investments in debt securities to secure payments under and in connection with certain reinsurance agreements. NOTE 4 - DIVIDENDS RECEIVED McDermott International, Inc. received dividends from its consolidated subsidiaries of $7,200,000, $17,200,000, and $21,250,000 for the years ended March 31, 1998, 1997 and 1996, respectively. -8- SIGNATURE OF THE REGISTRANT Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this amendment to be signed on its behalf by the undersigned, thereunto duly authorized. McDERMOTT INTERNATONAL, INC. s/Daniel R. Gaubert ---------------------- By: Daniel R. Gaubert Senior Vice President and Chief Financial Officer (Principal Financial Officer) June 24, 1998 -9- EXHIBIT INDEX Exhibit Number - ------- 21 Significant Subsidiares of the Registrant 27 Financial Data Schedule 27.1 Financial Data Schedule - 1st Quarter 27.2 Financial Data Schedule - 2nd Quarter 99 Supplementary Financial Information on Panamanian Securities Regulations -10- EX-21 2 SIGNIFICANT SUBSIDIARIES EXHIBIT 21 McDERMOTT INTERNATIONAL, INC. SIGNIFICANT SUBSIDIARIES OF THE REGISTRANT FISCAL YEAR ENDED MARCH 31, 1998 JURISDICTION PERCENTAGE OF OF OWNERSHIP NAME OF COMPANY ORGANIZATION INTEREST McDermott International Investments Co., Inc. Panama 100 McDermott International Project Management, Inc. Panama 100 McDermott Sakhalin, Inc. Panama 100 J. Ray McDermott, S.A. Panama 63 J. Ray McDermott Holdings, Inc. Delaware 100 J. Ray McDermott, Inc. Delaware 100 J. Ray McDermott International, Inc. Panama 100 Varsy International N.V. Netherlands Antilles 100 McDermott Incorporated Delaware 94 Babcock & Wilcox Investment Company Delaware 100 The Babcock & Wilcox Company Delaware 100 The subsidiaries omitted from the foregoing list do not, considered in the aggregate as a single subsidiary, constitute a significant subsidiary. EX-27.1 3 FINANCIAL DATA SCHEDULE - 1ST QUARTER
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MCDERMOTT INTERNATIONAL'S JUNE 30, 1997 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS MAR-31-1998 JUN-30-1997 289,330 76,393 652,523 99,650 389,871 1,819,434 1,774,193 1,190,500 4,527,722 1,509,217 625,702 0 2,875 55,258 488,988 4,527,722 928,087 928,087 880,744 880,744 0 0 25,205 127,038 17,178 109,860 0 0 0 109,860 1.97 1.79
EX-27.2 4 FINANCIAL DATA SCHEDULE - 2ND QUARTER
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MCDERMOTT INTERNATIONAL'S SEPTEMBER 30, 1997 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 6-MOS MAR-31-1998 SEP-30-1997 442,714 98 623,892 97,914 370,009 1,885,775 1,765,920 1,201,851 4,543,500 1,502,906 623,754 0 2,875 55,801 555,815 4,543,500 1,848,138 1,848,138 1,746,639 1,746,639 0 0 44,393 199,159 51,138 148,021 0 0 0 148,021 2.62 2.40
EX-99 5 EXHIBIT 99 EXHIBIT 99 McDERMOTT INTERNATIONAL, INC. ADDITIONAL EXHIBITS SUPPLEMENTARY FINANCIAL INFORMATION PREPARED IN ACCORDANCE WITH AND SOLELY FOR THE PURPOSE OF COMPLYING WITH CERTAIN PANAMANIAN SECURITIES REGULATIONS F.Y.E. 3/31/98 ------- (Unaudited) (In thousands) ARTICLE 29 ---------- RULE #9 - INVESTMENTS IN SUBSIDIARIES AND OTHER INVESTEES AT EQUITY - ------------------- Head Office (Parent Company) $ 1,320,178 Subsidiaries and Affiliates - Eliminations/Other (1,247,789) ----------- McDERMOTT INTERNATIONAL, INC. $ 72,389 =========== RULE #25C - PARENT COMPANY ACCOUNTS AND NOTES PAYABLE TO SUBSIDIARIES - ------------------------- Head Office (Parent Company) $ 819,254 Eliminations/Other (819,254) ----------- McDERMOTT INTERNATIONAL, INC. $ - =========== ARTICLE 30 ---------- (c) - OPERATING EXPENSES BY SEGMENT - ----------------------------------- Power Generation Systems $ 1,060,290 Marine Construction Services 1,748,364 Government Operations 334,703 Other Operations 333,108 Eliminations (31,878) ----------- McDERMOTT INTERNATIONAL, INC. $ 3,444,587 =========== RULE #40 - OPERATING REVENUES - ----------------------------- Head Office (Parent Company) $ - Subsidiaries and Affiliates 3,674,635 Eliminations/Other - ----------- McDERMOTT INTERNATIONAL, INC. $ 3,674,635 =========== Continued F.Y.E. 3/31/98 ------- (Unaudited) (In thousands) ARTICLE 30 - Continued ---------- [CAPTION] RULE #41 - OPERATING EXPENSES - ----------------------------- Head Office (Parent Company) $ 4,381 Subsidiaries and Affiliates 3,479,244 ---------- McDERMOTT INTERNATIONAL, INC. $3,483,625 ========== RULE #43 - DIVIDENDS RECEIVED - ----------------------------- Head Office (Parent Company) from Subsidiaries and Affiliates $ 7,200 Subsidiaries and Affiliates from Other Corporations 9,832 Eliminations/Other (7,200) ---------- McDERMOTT INTERNATIONAL, INC. $ 9,832 ========== RULE #44 - INTEREST INCOME - -------------------------- Head Office (Parent Company): from Subsidiaries and Affiliates $ 3 from Other Corporations 1,867 Subsidiaries and Affiliates from Other Corporations 60,668 Eliminations (3) ---------- McDERMOTT INTERNATIONAL, INC. $ 62,535 ========== RULE #46 - OTHER MISCELLANEOUS REVENUES - --------------------------------------- Foreign Currency Transaction Gains - Net 5,200 Other Items - Net (1,947) ---------- McDERMOTT INTERNATIONAL, INC. $ 3,253 ========== RULE #51 - INVESTMENTS IN UNCONSOLIDATED AFFILIATES AT EQUITY - ------------------------------------------------------------- Balance at 3/31/97 $ 61,017 Additional Investments 4,380 Return of Investment 2,124 Equity Income 24,006 Dividends Received (9,832) Other Changes (5,058) ---------- Balance at 3/31/98 $ 72,389 ========== -----END PRIVACY-ENHANCED MESSAGE-----