-----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, InB0SSXH/P9MmAgfLvamP3oLwtLGx8alWHJ24q51QXe4qK81kOYyUODcCEUv2rjD OV0XlpUEabj61CLcKjQ9GA== 0000899243-99-001452.txt : 19990630 0000899243-99-001452.hdr.sgml : 19990630 ACCESSION NUMBER: 0000899243-99-001452 CONFORMED SUBMISSION TYPE: 10-K/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990331 FILED AS OF DATE: 19990629 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MCDERMOTT INTERNATIONAL INC CENTRAL INDEX KEY: 0000708819 STANDARD INDUSTRIAL CLASSIFICATION: SHIP & BOAT BUILDING & REPAIRING [3730] 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: 99655070 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 FORM 10-K/A UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) F O R M 1 0 - K/A [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 1999 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 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 the Company'S Common Stock held by non-affiliates of the registrant was $1,725,490,308 as of April 29, 1999. The number of shares outstanding of the Company's Common Stock at April 29, 1999 was 59,248,598. 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 1999 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 PricewaterhouseCoopers LLP 3 Report of Ernst & Young LLP 4 Financial Statement Schedule Covered by Reports of Independent Accountants: I Condensed Financial Information of Registrant 5 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 12 Exhibit Index 99 Supplementary Financial Information on Panamanian Securities Regulations 2 REPORT OF INDEPENDENT ACCOUNTANTS ON FINANCIAL STATEMENT SCHEDULE To the Board of Directors and Stockholders of McDermott International, Inc. We have audited the consolidated financial statements of McDermott International, Inc. as of March 31, 1999 and for the year then ended, and have issued our report thereon dated May 14, 1999. Our audit also included Schedule I - Condensed Financial Information of Registrant as of March 31, 1999 and for the year then ended. In our opinion, this financial statement schedule presents fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements. PricewaterhouseCoopers LLP New Orleans, Louisiana May 14, 1999 3 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 for each of the two years in the period ended March 31, 1998, and have issued our report thereon dated May 19, 1998. Our audits also included the financial statement schedule as of March 31, 1998 and for each of the two fiscal years in the period ended March 31, 1998 listed in the Index to Financial Statement Schedules and Exhibits in the Form 10-K/A. 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 4 Schedule I McDERMOTT INTERNATIONAL, INC. (PARENT COMPANY ONLY) CONDENSED BALANCE SHEET MARCH 31, 1999 AND 1998 ASSETS - ------ 1999 1998 ---- ---- (In thousands) Current Assets: Cash and cash equivalents $ 9,374 $ 10,272 Accounts receivable - trade, net 357 561 Accounts receivable - other 2,244 1,993 Accounts receivable from subsidiaries 95,236 107,305 Other current assets 677 3,474 - --------------------------------------------------------------- Total Current Assets 107,888 123,605 - --------------------------------------------------------------- Investments in Subsidiaries and Other Investees, at Equity 1,626,555 1,320,178 - --------------------------------------------------------------- Property, Plant and Equipment, at Cost: Buildings 3,328 3,328 Machinery and equipment 6,741 6,745 - --------------------------------------------------------------- 10,069 10,073 Less accumulated depreciation 10,069 10,066 - --------------------------------------------------------------- Net Property, Plant and Equipment - 7 - --------------------------------------------------------------- Investments in Debt Securities 29,801 38,730 - --------------------------------------------------------------- Other Assets 84,317 54,641 - --------------------------------------------------------------- TOTAL $1,848,561 $1,537,161 =============================================================== See accompanying notes to condensed financial information. 5 Continued LIABILITIES AND STOCKHOLDERS' EQUITY - ------------------------------------ 1999 1998 ---- ---- (In thousands) Current Liabilities: Current maturities of long-term debt $ - $ 12,200 Accounts payable 478 632 Accounts payable to subsidiaries 1,041,941 819,254 Accrued liabilities - other 7,237 11,551 Income taxes 1,661 2,888 - --------------------------------------------------------------------- Total Current Liabilities 1,051,317 846,525 - --------------------------------------------------------------------- Other Liabilities 3,510 10,863 - --------------------------------------------------------------------- Commitments and Contingencies. Stockholders' Equity: Preferred stock - 2,875 Common stock 61,148 56,608 Capital in excess of par value 1,028,393 1,012,338 Accumulated deficit (200,432) (341,916) Treasury stock (62,731) (3,575) Accumulated other comprehensive loss (32,644) (46,557) - --------------------------------------------------------------------- Total Stockholders' Equity 793,734 679,773 - --------------------------------------------------------------------- TOTAL $1,848,561 $1,537,161 ===================================================================== 6 Schedule I McDERMOTT INTERNATIONAL, INC. (PARENT COMPANY ONLY) CONDENSED STATEMENT OF INCOME (LOSS) FOR THE THREE FISCAL YEARS ENDED MARCH 31, 1999 1999 1998 1997 ---- ---- ---- (In thousands) Costs and Expenses: Cost of operations (excluding depreciation and amortization) $ 201 $ 640 $ 16,072 Depreciation and amortization 1,479 2,495 761 Selling, general and administrative expenses 647 1,246 3,284 - ------------------------------------------------------------------------------- 2,327 4,381 20,117 - ------------------------------------------------------------------------------- Gain (Loss) on Asset Disposals-net - 2 (24) - ------------------------------------------------------------------------------- Operating Loss before Equity in Income (Loss) of Investees (2,327) (4,379) (20,141) - ------------------------------------------------------------------------------- Equity in Income (Loss) of Subsidiaries and Other Investees 149,448 221,974 (190,569) - ------------------------------------------------------------------------------- Operating Income (Loss) 147,121 217,595 (210,710) - ------------------------------------------------------------------------------- Other Income (Expense): Interest income 2,841 1,870 6,729 Interest expense (2,908) (4,728) (5,225) Other - net 18,693 953 1,871 - ------------------------------------------------------------------------------- 18,626 (1,905) 3,375 - ------------------------------------------------------------------------------- Income (Loss) before Benefit from Income Taxes and Extraordinary Item 165,747 215,690 (207,335) - ------------------------------------------------------------------------------- Benefit from Income Taxes (12,067) - (1,230) - ------------------------------------------------------------------------------- Income (Loss) before Extraordinary Item 177,814 215,690 (206,105) - ------------------------------------------------------------------------------- Extraordinary Item (24,452) - - - ------------------------------------------------------------------------------- Net Income (Loss) $153,362 $215,690 $(206,105) =============================================================================== See accompanying notes to condensed financial information. 7 Schedule I McDERMOTT INTERNATIONAL, INC (PARENT COMPANY ONLY) CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS) FOR THE THREE FISCAL YEARS ENDED 31, 1999
1999 1998 1997 ---- ---- ---- (In thousands) Net Income (Loss) $153,362 $215,690 $(206,105) - --------------------------------------------------------------------------------------- Other Comprehensive Income (Loss): Equity in other comprehensive income (loss) of subsidiaries and other investees 14,078 (1,879) (14,417) Foreign currency translation adjustments (79) - - Minimum pension liability adjustments 15 284 169 Unrealized gains (losses) on investments: Unrealized gains arising during the period, net of reclassification adjustments 131 - Reclassification adjustment for losses included in net income (101) - --------------------------------------------------------------------------------------- Other Comprehensive Income (Loss) 13,913 (1,464) (14,248) - --------------------------------------------------------------------------------------- Comprehensive Income (Loss) 167,275 214,226 (220,353) =======================================================================================
See accompanying notes to condensed financial information. 8 Schedule I McDERMOTT INTERNATIONAL, INC. (PARENT COMPANY ONLY) CONDENSED STATEMENT OF CASH FLOWS FOR THE THREE FISCAL YEARS ENDED MARCH 31, 1999 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
1999 1998 1997 ---- ---- ---- (In thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ 153,362 $215,690 $(206,105) - ----------------------------------------------------------------------------------- Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 1,479 2,495 761 Equity in income or loss of subsidiaries and other investees, less dividends (105,796) (214,774) 207,769 (Gain) loss on asset disposals-net - (2) 24 Benefit from deferred taxes (1,437) - (1,230) Other 10,217 10,419 7,385 Changes in assets and liabilities: Accounts and notes receivable 12,022 27,398 153,023 Accounts payable 222,533 4,582 (196,099) Income taxes (1,236) 526 (4,212) Other, net (62,803) (26,909) (6,897) - ----------------------------------------------------------------------------------- NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 228,341 19,425 (45,581) - ----------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from asset disposals 3 2 6 Purchases of property, plant and equipment - - 2 Investments in subsidiaries (158,000) - (68,162) Purchases of available-for-sale securities (16,010) - - Maturities of available-for-sale securities 7,000 5,000 - Sales of available-for-sale securities 17,834 - - Decrease (increase) in loans to subsidiaries (300) - 231,000 - ----------------------------------------------------------------------------------- NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (149,473) 5,002 162,846 ===================================================================================
9 Continued INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
1999 1998 1997 ---- ---- ---- (In thousands) CASH FLOWS FROM FINANCING ACTIVITIES: Payment of long-term debt $ (12,200) $(22,600) $ (20,500) Issuance of common stock 4,173 31,431 565 Decrease in loans from subsidiaries - - (45,455) Dividends paid (13,810) (19,367) (51,947) Purchase of McDermott International, Inc. stock (59,156) (3,662) - Other 1,227 - - - ----------------------------------------------------------------------------------- NET CASH USED IN FINANCING ACTIVITIES (79,766) (14,198) (117,337) - ----------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (898) 10,229 (72) - ----------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 10,272 43 115 - ----------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS AT END OF YEAR $ 9,374 $ 10,272 $ 43 - ----------------------------------------------------------------------------------- SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest, including intercompany interest (net of amount capitalized) $ 3,182 $ 5,317 $ 5,778 Income taxes, net of refunds $ 1 $ - $ - ===================================================================================
See accompanying notes to condensed financial information. 10 Schedule I McDERMOTT INTERNATIONAL, INC. (PARENT COMPANY ONLY) NOTES TO CONDENSED FINANCIAL INFORMATION FOR THE THREE FISCAL YEARS ENDED MARCH 31, 1999 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: 1999 1998 ---- ---- (In thousands) 10.375% Note payable due 1998 (Secured) $ - $ 12,200 Less: Amounts due within one year - 12,200 ------- -------- $ - $ - ======= ======== NOTE 3 - CONTINGENCIES McDermott International, Inc. has guaranteed the indebtedness of certain of its subsidiaries and other investees. At March 31, 1999, these guarantees included $434,000 of loans to and $1,168,000 of standby letters of credit issued by certain subsidiaries and other investees. At March 31, 1999, 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 $19,200,000, $7,200,000, and $17,200,000 for the years ended March 31, 1999, 1998 and 1997, respectively. 11 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 INTERNATIONAL, INC. /s/Daniel R. Gaubert ---------------------------------- By: Daniel R. Gaubert Senior Vice President and Chief Financial Officer (Principal Financial Officer) June 29, 1999 12 EXHIBIT INDEX Exhibit Number - ------- 99 Supplementary Financial Information on Panamanian Securities Regulations 13 EX-99 2 SUPPLEMENTARY FINANCIAL INFORMATION 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. 3/31/99 ------- (Unaudited) (In thousands) ARTICLE 29 RULE #9 - INVESTMENTS IN SUBSIDIARIES AND OTHER INVESTEES AT EQUITY Head Office (Parent Company) $ 1,626,555 Subsidiaries and Affiliates - Eliminations/Other (1,565,162) ----------- McDERMOTT INTERNATIONAL, INC. $ 61,393 =========== RULE #25C - PARENT-COMPANY ACCOUNTS AND NOTES PAYABLE TO SUBSIDIARIES Head Office (Parent Company) $ 1,041,941 Eliminations/Other (1,041,941) ----------- McDERMOTT INTERNATIONAL, INC. $ - =========== ARTICLE 30 (c) - OPERATING EXPENSES BY SEGMENT Power Generation Systems $ 975,899 Marine Construction Services 1,153,088 Government Operations 343,353 Other Operations 410,614 Eliminations (6,028) ----------- McDERMOTT INTERNATIONAL, INC. $ 2,876,926 =========== RULE #40 - OPERATING REVENUES Head Office (Parent Company) $ - Subsidiaries and Affiliates 3,149,985 Eliminations/Other - ----------- McDERMOTT INTERNATIONAL, INC. $ 3,149,985 ===========
14 Continued
F.Y.E. 3/31/99 ------- (Unaudited) (In thousands) ARTICLE 30 - Continued RULE #41 - OPERATING EXPENSES Head Office (Parent Company) $ 290 Subsidiaries and Affiliates 2,958,568 ----------- McDERMOTT INTERNATIONAL, INC. $ 2,958,858 ----------- RULE #43 - DIVIDENDS RECEIVED Head Office (Parent Company) from Subsidiaries and Affiliates $ 19,200 Subsidiaries and Affiliates from Other Corporations 28,650 Eliminations/Other (19,200) ----------- McDERMOTT INTERNATIONAL, INC. $ 28,650 ----------- RULE #44 - INTEREST INCOME Head Office (Parent Company): from Subsidiaries and Affiliates $ 3 from Other Corporations 2,839 Subsidiaries and Affiliates from Other Corporations 95,126 Eliminations (3) ----------- McDERMOTT INTERNATIONAL, INC. $ 97,965 =========== RULE #46 - OTHER MISCELLANEOUS REVENUES Foreign Currency Transaction Gains - Net 3,384 Gain on Curtailment of Postretirement Plans (21,940) Other Items - Net (243) ----------- McDERMOTT INTERNATIONAL, INC. $ (18,799) =========== RULE #51 - INVESTMENTS IN UNCONSOLIDATED AFFILIATES AT EQUITY Balance at 3/31/98 $ 72,389 Equity Income 8,379 Dividends Received (28,650) Other Changes 9,275 ----------- Balance at 3/31/99 $ 61,393 ===========
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