-----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, OiJahgR4FSBTblnCmNlN7doBlzOyZuGH+LBva/SHFs/vIFLAYKtOCWrccSdxXuEs TTX8VpGHdlt3xhBRixJ33w== 0000950134-95-002881.txt : 19951119 0000950134-95-002881.hdr.sgml : 19951119 ACCESSION NUMBER: 0000950134-95-002881 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951114 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MCDERMOTT INTERNATIONAL INC CENTRAL INDEX KEY: 0000708819 STANDARD INDUSTRIAL CLASSIFICATION: FABRICATED PLATE WORK (BOILER SHOPS) [3443] IRS NUMBER: 720593134 STATE OF INCORPORATION: R1 FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-08430 FILM NUMBER: 95591218 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-Q 1 FORM 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the period ended September 30, 1995 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT 1934 For the transition period from to -------------- -------------- Commission File No. 1-8430 McDERMOTT INTERNATIONAL, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) REPUBLIC OF PANAMA 72-0593134 - -------------------------------------------------------------------------------- (State of Incorporation) (I.R.S. Employer Identification No.) 1450 Poydras Street, New Orleans, Louisiana 70112-6050 - -------------------------------------------------------------------------------- (Address of Principal Executive Office) (Zip Code) Registrant's Telephone Number, Including Area Code (504) 587-5400 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 and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ] The number of shares of Common Stock, par value $1 per share, outstanding as of October 30, 1995 was 54,350,588. 2 M c D E R M O T T I N T E R N A T I O N A L , I N C. I N D E X - F O R M 1 0 - Q
PAGE ---- PART I - FINANCIAL INFORMATION - ------------------------------ Item 1 - Condensed Consolidated Financial Statements Condensed Consolidated Balance Sheet September 30, 1995 and March 31, 1995 4 Condensed Consolidated Statement of Income (Loss) Three Months Ended and Six Months Ended September 30, 1995 and September 30, 1994 6 Condensed Consolidated Statement of Cash Flows Six Months Ended September 30, 1995 and September 30, 1994 8 Notes to Condensed Consolidated Financial Statements 10 Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations 14 PART II - OTHER INFORMATION - --------------------------- Item 6 - Exhibits and Reports on Form 8-K 28 SIGNATURES 29 Exhibit 11 - Calculation of Earnings (Loss) Per Common and Common Equivalent Share 31
2 3 PART I McDERMOTT INTERNATIONAL, INC. FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements 3 4 McDERMOTT INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEET SEPTEMBER 30, 1995 ASSETS
9/30/95 3/31/95 ------- ------- (Unaudited) (In thousands) Current Assets: Cash and cash equivalents $ 107,554 $ 85,909 Short-term investments 70,606 132,691 Accounts receivable - trade 543,757 475,861 Accounts receivable - unconsolidated affiliates 102,372 75,709 Accounts receivable - other 99,688 104,155 Insurance recoverable - current 114,600 111,188 Contracts in progress 343,822 279,016 Inventories 70,046 64,044 Deferred income taxes 67,680 76,863 Other current assets 42,008 45,131 - -------------------------------------------------------------------------------------------------------------- Total Current Assets 1,562,133 1,450,567 - -------------------------------------------------------------------------------------------------------------- Property, Plant and Equipment, at Cost: 2,252,559 2,237,018 Less accumulated depreciation 1,363,394 1,337,341 - -------------------------------------------------------------------------------------------------------------- Net Property, Plant and Equipment 889,165 899,677 - -------------------------------------------------------------------------------------------------------------- Investments: Government obligations 158,222 383,023 Other investments 146,379 199,379 - -------------------------------------------------------------------------------------------------------------- Total Investments 304,601 582,402 - -------------------------------------------------------------------------------------------------------------- Insurance Recoverable 680,916 750,219 - -------------------------------------------------------------------------------------------------------------- Excess of Cost Over Fair Value of Net Assets of Purchased Businesses Less Accumulated Amortization of $112,228,000 at September 30, 1995 and $96,405,000 at March 31, 1995 363,534 381,491 - -------------------------------------------------------------------------------------------------------------- Prepaid Pension Costs 298,001 277,814 - -------------------------------------------------------------------------------------------------------------- Other Assets 430,340 409,500 - -------------------------------------------------------------------------------------------------------------- TOTAL $ 4,528,690 $ 4,751,670 ==============================================================================================================
See accompanying notes to condensed consolidated financial statements. 4 5 LIABILITIES AND STOCKHOLDERS' EQUITY
9/30/95 3/31/95 ------- ------- (Unaudited) (In thousands) Current Liabilities: Notes payable and current maturities of long-term debt $ 363,785 $ 407,586 Accounts payable 281,183 286,219 Environmental and products liabilities - current 156,264 133,280 Accrued employee benefits 102,029 104,883 Accrued liabilities - other 281,377 326,688 Advance billings on contracts 153,458 180,018 U.S. and foreign income taxes 36,757 52,683 - --------------------------------------------------------------------------------------------------------------- Total Current Liabilities 1,374,853 1,491,357 - --------------------------------------------------------------------------------------------------------------- Long-Term Debt 579,672 579,101 - --------------------------------------------------------------------------------------------------------------- Accumulated Postretirement Benefit Obligation 397,425 393,744 - --------------------------------------------------------------------------------------------------------------- Environmental and Products Liabilities 810,138 913,939 - --------------------------------------------------------------------------------------------------------------- Other Liabilities 301,432 310,989 - --------------------------------------------------------------------------------------------------------------- Contingencies - --------------------------------------------------------------------------------------------------------------- Minority Interest: Subsidiary's preferred stocks 179,251 179,251 Other minority interest 169,206 172,710 - --------------------------------------------------------------------------------------------------------------- Total Minority Interest 348,457 351,961 - --------------------------------------------------------------------------------------------------------------- Stockholders' Equity: Preferred stock, authorized 25,000,000 shares; outstanding 2,875,000 Series C $2.875 cumulative convertible, par value $1.00 per share, (liquidation preference $143,750,000) 2,875 2,875 Common stock, par value $1.00 per share, authorized 150,000,000 shares; outstanding 54,250,587 at September 30, 1995 and 53,959,597 at March 31, 1995 54,251 53,960 Capital in excess of par value 939,390 936,134 Deficit (262,392) (249,061) Minimum pension liability (391) (391) Net unrealized loss on investments (228) (8,050) Currency translation adjustments (16,792) (24,888) - --------------------------------------------------------------------------------------------------------------- Total Stockholders' Equity 716,713 710,579 - --------------------------------------------------------------------------------------------------------------- TOTAL $ 4,528,690 $ 4,751,670 ===============================================================================================================
5 6 McDERMOTT INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENT OF INCOME (LOSS) SEPTEMBER 30, 1995
THREE SIX MONTHS ENDED MONTHS ENDED 9/30/95 9/30/94 9/30/95 9/30/94 ------- ------- ------- ------- (Unaudited) (In thousands) Revenues $ 806,756 $ 724,065 $ 1,623,230 $ 1,483,873 - -------------------------------------------------------------------------------------------------------------- Costs and Expenses: Cost of operations (excluding depreciation and amortization) 686,460 627,343 1,397,108 1,273,043 Depreciation and amortization 36,660 25,065 70,772 61,983 Selling, general and administrative expenses 68,168 66,534 135,019 134,195 - -------------------------------------------------------------------------------------------------------------- 791,288 718,942 1,602,899 1,469,221 - -------------------------------------------------------------------------------------------------------------- Operating Income before Equity in Income (Loss) of Investees 15,468 5,123 20,331 14,652 Equity in Income (Loss) of Investees (15) 14,646 33,164 20,948 - -------------------------------------------------------------------------------------------------------------- Operating Income 15,453 19,769 53,495 35,600 - -------------------------------------------------------------------------------------------------------------- Other Income (Expense): Interest income 8,431 15,744 19,690 26,142 Interest expense (21,376) (14,101) (42,914) (26,940) Minority interest (5,516) (1,151) (9,146) (5,008) Other-net 7,988 (15,917) 5,564 (19,936) - -------------------------------------------------------------------------------------------------------------- (10,473) (15,425) (26,806) (25,742) - -------------------------------------------------------------------------------------------------------------- Income before Provision for (Benefit from) Income Taxes and Cumulative Effect of Accounting Change 4,980 4,344 26,689 9,858 Provision for (Benefit from) Income Taxes (4,074) 7,606 8,803 10,002 - -------------------------------------------------------------------------------------------------------------- Income (Loss) before Cumulative Effect of Accounting Change 9,054 (3,262) 17,886 (144) Cumulative Effect of Accounting Change - - - (1,765) - -------------------------------------------------------------------------------------------------------------- Net Income (Loss) $ 9,054 $ (3,262) $ 17,886 $ (1,909) ==============================================================================================================
6 7 CONTINUED
THREE SIX MONTHS ENDED MONTHS ENDED 9/30/95 9/30/94 9/30/95 9/30/94 ------- ------- ------- ------- (Unaudited) (In thousands, except shares and per share amounts) NET INCOME (LOSS) APPLICABLE TO COMMON STOCK (AFTER PREFERRED STOCK DIVIDENDS) $ 6,987 $ (5,329) $ 13,753 $ (6,042) - -------------------------------------------------------------------------------------------------------------- EARNINGS (LOSS) PER COMMON AND COMMON EQUIVALENT SHARE (PRIMARY AND FULLY DILUTED): Income (loss) before cumulative effect of accounting change $ 0.13 $ (0.10) $ 0.25 $ (0.08) Accounting change - - - (0.03) - -------------------------------------------------------------------------------------------------------------- Net income (loss) $ 0.13 $ (0.10) $ 0.25 $ (0.11) ============================================================================================================== Weighted average number of common and common equivalent shares 54,359,639 53,568,530 54,386,373 53,523,543 CASH DIVIDENDS: Per common share $ 0.25 $ 0.25 $ 0.50 $ 0.50 Per preferred share $ 0.72 $ 0.72 $ 1.44 $ 1.44 ==============================================================================================================
See accompanying notes to condensed consolidated financial statements. 7 8 McDERMOTT INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS SEPTEMBER 30, 1995 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
SIX MONTHS ENDED 9/30/95 9/30/94 ------- ------- (Unaudited) (In thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ 17,886 $ (1,909) - -------------------------------------------------------------------------------------------------------------- Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 70,772 61,983 Gain on sale and disposal of assets (7,337) (579) Equity in income of investees, less dividends 15,431 19,179 Provision for (benefit from) deferred taxes (1,719) 44,488 Other 2,438 5,500 Changes in assets and liabilities: Accounts receivable (103,538) (11,864) Net contracts in progress and advance billings (89,911) (55,184) Accounts payable (6,089) (79,192) Accrued liabilities (45,526) (17,252) Income taxes (12,464) (51,657) Other, net (28,110) (14,693) Proceeds from insurance for products liabilities claims 49,305 53,823 Payments of products liabilities claims (74,112) (61,557) - -------------------------------------------------------------------------------------------------------------- NET CASH USED IN OPERATING ACTIVITIES (212,974) (108,914) - -------------------------------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of minority interest in Delta Catalytic Corporation (6,527) - Proceeds from the sale and disposal of assets 17,908 889 Purchases of property, plant and equipment (38,666) (47,149) Investment in asset held for lease (9,802) - Purchases of short and long-term investments (304,920) (322,510) Sales of short and long-term investments 652,904 325,190 Investments in equity investees (4,609) (4,933) - -------------------------------------------------------------------------------------------------------------- NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 306,288 (48,513) - --------------------------------------------------------------------------------------------------------------
8 9 CONTINUED INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
SIX MONTHS ENDED 9/30/95 9/30/94 ------- ------- (Unaudited) (In thousands) CASH FLOWS FROM FINANCING ACTIVITIES: Payment of long-term debt $ (163,047) $ (9,587) Issuance of long-term debt 13,240 - Increase in short-term borrowing 108,304 172,217 Dividends paid (31,142) (30,863) Repurchase of subsidiary's preferred stock - (16,753) Other 979 (538) - ------------------------------------------------------------------------------------------------------------- NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (71,666) 114,476 - ------------------------------------------------------------------------------------------------------------- EFFECTS OF EXCHANGE RATE CHANGES ON CASH (3) 1,271 - ------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 21,645 (41,680) - ------------------------------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 85,909 133,809 - ------------------------------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 107,554 $ 92,129 ============================================================================================================= SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest (net of amount capitalized) $ 47,175 $ 35,040 Income taxes (net of refunds) $ 29,934 $ 25,844 =============================================================================================================
See accompanying notes to condensed consolidated financial statements. 9 10 McDERMOTT INTERNATIONAL, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 1995 NOTE 1 - BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements are presented in U.S. Dollars and have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Such adjustments are of a normal, recurring nature except for a favorable insurance adjustment ($12,000,000 or $0.22 per share) in the three and six months ended September 30, 1995; a gain resulting from the sale of two power purchase contracts ($20,047,000 net of tax of $10,565,000, or $0.37 per share) included in the six months ended September 30, 1995; a loss related to the reduction of estimated products liability claim recoveries from insurers ($14,478,000 or $0.27 per share) included in the three and six months ended September 30, 1994; a reduction in accrued interest expense ($5,600,000 and $11,300,000, or $0.10 and $0.21 per share, respectively) due to the settlement of outstanding tax issues included in the three and six months ended September 30, 1994; and accelerated depreciation on certain marine equipment ($4,314,000 or $0.08 per share), a reduction in accrued interest expense ($3,705,000 net of tax of $1,995,000, or $0.07 per share) due to settlement of an outstanding tax issue with the IRS, and the cumulative effect of the accounting change for the adoption of Statement of Financial Accounting Standards No. 112, "Employers' Accounting for Postemployment Benefits" included in the six months ended September 30, 1994. Operating results for the three and six months ended September 30, 1995 are not necessarily indicative of the results that may be expected for the year ended March 31, 1996. For further information, refer to the consolidated financial statements and footnotes thereto included in McDermott International, Inc.'s annual report on Form 10-K for the year ended March 31, 1995. 10 11 Unless the context otherwise requires, hereinafter "International" will be used to mean McDermott International, Inc., a Panamanian corporation; "JRM" will be used to mean J. Ray McDermott, S.A., a Panamanian corporation, which is a majority-owned subsidiary of International, and its consolidated subsidiaries; and the "Delaware Company" will be used to mean McDermott Incorporated, a Delaware corporation which is a subsidiary of International, and its consolidated subsidiaries (including Babcock & Wilcox Investment Company and its principal subsidiary, The Babcock & Wilcox Company); and "McDermott International" will be used to mean the consolidated enterprise. NOTE 2 - PRODUCTS LIABILITY At September 30, 1995, the estimated liability for pending and future non-employee products liability asbestos claims was $921,836,000 (of which less than $240,000,000 had been asserted) and estimated insurance recoveries were $795,516,000. Estimated liabilities for pending and future non-employee products liability asbestos claims are derived from McDermott International's claims history and constitute management's best estimate of such future costs. Estimated insurance recoveries are based upon analysis of insurers providing coverage of the estimated liabilities. Inherent in the estimate of such liabilities and recoveries are expected trends in claim severity and frequency and other factors, including recoverability from insurers, which may vary significantly as claims are filed and settled. Accordingly, the ultimate loss may differ materially from amounts provided in the consolidated financial statements. NOTE 3 - INVENTORIES Consolidated inventories at September 30, 1995 and March 31, 1995 are summarized below:
September 30, March 31, 1995 1995 ------------- --------- (In thousands) Raw Materials and Supplies $ 44,332 $ 38,570 Work in Progress 15,787 15,341 Finished Goods 9,927 10,133 - -------------------------------------------------------------------------------------------------------- $ 70,046 $ 64,044 ========================================================================================================
11 12 NOTE 4 - SUMMARIZED INCOME STATEMENT INFORMATION OF AFFILIATES The combined financial results of McDermott International's equity investments in HeereMac and McDermott-ETPM West, Inc. are summarized below. These ventures were significant as defined by applicable SEC regulations in fiscal year 1995. The following summarizes the combined income statements:
THREE SIX MONTHS ENDED MONTHS ENDED 9/30/95 9/30/94 9/30/95 9/30/94 ------- ------- ------- ------- (In thousands) Revenues $ 126,104 $ 186,860 $ 318,023 $ 424,145 - ------------------------------------------------------------------------------------------------------------------------ Operating Income (Loss) $ (1,274) $ 18,913 $ 4,338 $ 19,769 - ------------------------------------------------------------------------------------------------------------------------ Income (Loss) before Income Taxes $ (200) $ 22,768 $ 10,011 $ 28,356 Provision for (Benefit from) Income Taxes (1,355) (342) 318 (892) - ------------------------------------------------------------------------------------------------------------------------ Net Income $ 1,155 $ 23,110 $ 9,693 $ 29,248 ======================================================================================================================== Equity in Net Income $ 891 $ 11,504 $ 4,873 $ 14,555 ========================================================================================================================
NOTE 5 - SALE OF POWER PURCHASE CONTRACTS During the June 1995 quarter, McDermott International, Inc.'s Babcock-Ultrapower West Enfield and Babcock-Ultrapower Jonesboro 50% owned partnerships sold power purchase contracts back to the local utility which had previously entered into agreements with the partnerships to purchase power, and recognized a gain of $61,324,000. McDermott International's equity in earnings of these partnerships was $25,000 and $32,865,000 [including its share of the gain] for the three and six months ended September 30, 1995. NOTE 6 - ACQUISITION OF OFFSHORE PIPELINES, INC. On January 31, 1995, McDermott International contributed substantially all of its marine construction services business to JRM and JRM acquired Offshore Pipelines, Inc. The acquisition was accounted for by the purchase method and, accordingly, the purchase price was allocated to the underlying assets and liabilities based upon preliminary fair values at the date of 12 13 acquisition. The preliminary purchase price allocation is subject to change when additional information concerning asset and liability valuations is obtained. NOTE 7 - OTHER AGREEMENTS During June 1995, McDermott International and Delta Catalytic Corporation ("DCC") of Calgary, Alberta, concluded an agreement which accelerated McDermott International's purchase of the remaining portion of DCC from fiscal year 1997 to June 1995. During June 1993, McDermott International had acquired a controlling interest in DCC in the first step of a two step transaction. DCC provides engineering, procurement, construction and maintenance services to industries worldwide; including oil, gas, marine construction and hydrocarbon processing. Also during the June 1995 quarter, substantially all of the agreements required to restructure the JRM and ETPM joint venture were finalized, but are still subject to any necessary government approvals or authorizations. The agreements expand the joint venture into the Far East, the Mediterranean Sea, and all of Africa, give ETPM S.A. a minority interest in a new JRM subsea company, and give JRM a minority interest in a new ETPM company. Neither of these transactions are significant as defined by applicable SEC regulations. 13 14 Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS GENERAL Beginning with the June 1995 quarter, management's discussion of revenues and operating income is presented on a business unit basis as follows: J. Ray McDermott, S.A. ("JRM") business unit (includes the results of operations of the marine construction services business); B&W Operations business unit (includes the operations of the Babcock & Wilcox Power Generation and Government Groups); and Engineering, Construction and Industrial Operations business unit (includes the Engineering and Construction Group, and Shipbuilding and Industrial Group). Other business unit revenues includes eliminations between business units; and Other business unit loss includes certain expenses, primarily employee benefit and insurance programs, and marketing and legal costs, that are not allocated to the business units. For the three and six months ended September 30, 1994, the results of businesses disposed of during the fiscal year 1995 are included in Other revenues and business unit loss. Prior year information has been reclassified to conform with the September 30, 1995 presentation.
THREE SIX MONTHS ENDED MONTHS ENDED 9/30/95 9/30/94 9/30/95 9/30/94 ------- ------- ------- ------- (In thousands) REVENUES J. Ray McDermott, S.A. $ 355,957 $ 279,322 $ 667,760 $ 558,368 B&W Operations 313,341 320,092 630,979 610,717 Engineering, Construction and Industrial Operations 162,825 172,885 368,346 386,130 Other (including Transfer Eliminations) (25,367) (48,234) (43,855) (71,342) - --------------------------------------------------------------------------------------------------------------- TOTAL REVENUES $ 806,756 $ 724,065 $ 1,623,230 $ 1,483,873 ===============================================================================================================
14 15 OPERATING INCOME (CONTINUED)
THREE SIX MONTHS ENDED MONTHS ENDED 9/30/95 9/30/94 9/30/95 9/30/94 ------- ------- ------- ------- (In thousands) OPERATING INCOME Business Unit Income (Loss): J. Ray McDermott, S.A. $ 20,729 $ 24,463 $ 35,371 $ 41,290 B&W Operations 6,680 6,390 11,951 16,693 Engineering, Construction and Industrial Operations (11,579) (10,595) (16,161) (15,934) Other 6,683 (6,585) 3,548 (11,120) - -------------------------------------------------------------------------------------------------------------- TOTAL BUSINESS UNIT INCOME 22,513 13,673 34,709 30,929 - -------------------------------------------------------------------------------------------------------------- Equity in Income (Loss) of Investees: J. Ray McDermott, S.A. (1,903) 11,463 (2,801) 14,430 B&W Operations 1,758 1,116 35,841 3,936 Engineering, Construction and Industrial Operations 130 573 124 1,088 Other - 1,494 - 1,494 - -------------------------------------------------------------------------------------------------------------- TOTAL EQUITY IN INCOME (LOSS) OF INVESTEES (15) 14,646 33,164 20,948 - -------------------------------------------------------------------------------------------------------------- Corporate G&A Expense (7,045) (8,550) (14,378) (16,277) - -------------------------------------------------------------------------------------------------------------- TOTAL OPERATING INCOME $ 15,453 $ 19,769 $ 53,495 $ 35,600 ==============================================================================================================
RESULTS OF OPERATIONS - THREE MONTHS ENDED SEPTEMBER 30, 1995 VS. THREE MONTHS ENDED SEPTEMBER 30, 1994 JRM's revenues increased $76,635,000 to $355,957,000 primarily due to higher purchased engineered equipment and subcontract activities in the North Sea related to the B.P. Exploration Foinaven Development program west of the Shetlands in the North Atlantic, and higher revenues in North America. These increases were partially offset by lower revenues in the Far East. 15 16 B&W Operations' revenues decreased $6,751,000 to $313,341,000 primarily due to lower revenues from the Power Generation Group's fabrication of fossil fuel steam and environmental control systems, and industrial boilers in the U.S. These decreases were partially offset by higher revenues from replacement nuclear steam generators and Canadian nuclear services. In addition, the Government Group's defense and space-related products (other than nuclear fuel assemblies and reactor components) had higher revenues. Engineering, Construction and Industrial Operations' revenues decreased $10,060,000 to $162,825,000 primarily due to lower revenues from the Engineering and Construction Group's construction, repair and alteration of utility and industrial boilers in the U.S. and the Shipbuilding and Industrial Group's shipyard operations. These decreases were partially offset by higher revenues from the Engineering and Construction Group's maintenance and engineering activities in Canada. JRM's business unit income decreased $3,734,000 to $20,729,000 primarily due to lower volume in the Far East this year and the completion of higher profit margin contracts in both the Far East and Middle East in the prior period. These decreases were partially offset by higher volume and margins on North American fabrication activities and higher volume and margins on North Sea engineering and offshore activities. B&W Operations' business unit income increased $290,000 to $6,680,000. Improved margins from the Power Generation Group's fabrication of fossil fuel steam and environmental control systems were offset by lower volume and margins from the fabrication of industrial boilers in the U.S. In addition, there was higher volume and margins from the Government Group's defense and space-related products (other than nuclear fuel assemblies and reactor components). These were partially offset by lower volume and margins from nuclear fuel assemblies and reactor components for the U.S. Government. Engineering, Construction and Industrial Operations' business unit loss increased $984,000 to $11,579,000 primarily due to lower volume and margins from the Engineering and Constructions Group's construction, repair and alteration of utility and industrial boilers in 16 17 the U.S., including cost overruns on the completion of a contract for one U.S. customer. This increase was partially offset by improved margins from the Shipbuilding and Industrial Group's shipyard operations. Other business unit income increased $13,268,000 from a loss of $6,585,000 to income of $6,683,000 primarily due to a favorable insurance adjustment of $12,000,000 in the current year and the inclusion of losses in the prior year of businesses that were disposed of during fiscal 1995. JRM's equity in income (loss) of investees decreased $13,366,000 from income of $11,463,000 to a loss of $1,903,000. Both the HeereMac and McDermott-ETPM West, Inc. joint ventures performed at lower levels than in the previous year. The revenues of these two joint ventures declined from $186,860,000 to $126,104,000. HeereMac declined primarily in the U.S. Gulf and the Far East. McDermott-ETPM West, Inc. declined in the North Sea, partially offset by increased volume in West Africa. The equity income from these two joint ventures declined from $11,504,000 to $891,000. HeereMac's equity income decreased as a result of reduced volume and reduced margins. McDermott-ETPM West, Inc.'s equity income also decreased as a result of reduced volume and reduced margins, but the decrease was not as severe. Both joint ventures are expected to remain at low levels through 1997. The remaining decrease in equity in income (loss) of investees is due to losses incurred by several foreign joint ventures which were acquired as part of the merger with Offshore Pipelines, Inc. B&W Operations' equity in income of investees increased $642,000 to $1,758,000 primarily due to the Power Generations Group's provision for loss on discontinuing a domestic joint venture in the prior year, partially offset by lower operating results in two foreign joint ventures this year. Other business unit equity in income of investees includes the results of the CMM Mexican joint venture which was not a part of JRM's marine construction business in the prior period. Interest income decreased $7,313,000 to $8,431,000, primarily due to decreases in investments in government obligations and other investments in the current period and 17 18 income recognized in the prior period on a receivable from an equity investee and settlement of an interest claim on certain foreign tax refunds. Interest expense increased $7,275,000 to $21,376,000, primarily due to a reduction in accrued interest of $5,600,000 on proposed tax deficiencies that was recorded in the prior period and changes in debt obligations and interest rates prevailing thereon. Minority interest expense increased $4,365,000 to $5,516,000 primarily due to minority shareholder participation in the results of JRM in the current period and in improved operating results of the McDermott-ETPM East joint venture. Other-net increased $23,905,000 to income of $7,988,000 from expense of $15,917,000. This increase was primarily due to a loss related to the reduction of estimated products liability asbestos claim recoveries of $14,478,000 from insurers and higher bank fees and discounts on the sale of certain accounts receivable in the prior period, and gains of $6,551,000 on the disposal of assets in the current period. The provision for income taxes decreased $11,680,000 from a provision of $7,606,000 to a benefit of $4,074,000, while income before provision for income taxes increased $636,000 to $4,980,000. The decrease in the provision for income taxes was in part due to a reappraisal of liabilities in certain foreign tax jurisdictions and the ability to recognize income tax benefits on losses in the U. S. in the current period which were limited in the prior period. In addition, McDermott International operates in many different tax jurisdictions. Within these jurisdictions, tax provisions vary because of nominal rates, allowability of deductions, credits and other benefits, and even tax basis (for example, revenues versus income). These variances, along with variances in the mix of income within jurisdictions, are responsible for shifts in the effective tax rate. As a result of these factors, the income tax benefit was 82% of pretax income for the three months ended September 30, 1995 compared to a provision for income taxes of 175% of pretax income for the three months ended September 30, 1994. 18 19 RESULTS OF OPERATIONS - SIX MONTHS ENDED SEPTEMBER 30, 1995 VS. SIX MONTHS ENDED SEPTEMBER 30, 1994 JRM's revenues increased $109,392,000 to $667,760,000 primarily due to higher purchased engineered equipment and subcontract activities in the North Sea related to the B.P. Exploration Foinaven Development program west of the Shetlands in the North Atlantic, and higher revenues in North America and the Middle East. These increases were partially offset by lower revenues in the Far East. B&W Operations' revenues increased $20,262,000 to $630,979,000 primarily due to higher revenues from the Power Generation Group's contracts on replacement nuclear steam generators for domestic customers at its Cambridge, Ontario location and on plant enhancement projects. These increases were partially offset by lower revenues from fabrication of fossil fuel steam and environmental control systems in the U.S. In addition, the Government Group's defense and space-related products (other than nuclear fuel assemblies and reactor components) had higher revenues. These were partially offset by lower revenues from nuclear fuel assemblies and reactor components for the U.S. Government. Engineering, Construction and Industrial Operations' revenues decreased $17,784,000 to $368,346,000 primarily due to lower revenues from the Engineering and Construction Group's construction, repair and alteration of utility and industrial boilers in the U.S., and the Shipbuilding and Industrial Group's shipyard operations. These decreases were partially offset by higher revenues from the Engineering and Construction Group's maintenance and engineering activities in Canada. JRM's business unit income decreased $5,919,000 to $35,371,000 primarily due to lower volume and margins in the Far East this year and the completion of higher profit margin contracts in both the Far East and Middle East in the prior period. These decreases were partially offset by higher volume and margins on North American fabrication activities, higher volume and margins on North Sea engineering and offshore activities, and the accelerated depreciation of $4,134,000 on certain marine equipment in the Far East in the prior period. 19 20 B&W Operations' business unit income decreased $4,742,000 to $11,951,000 primarily due to lower margins from the Power Generation Group's fabrication of industrial boilers in the U.S. This decrease was partially offset by higher volume and margins from replacement nuclear steam generators and plant enhancement projects. In addition, there was higher volume from the Government Group's defense and space-related products (other than nuclear fuel assemblies and reactor components). This was partially offset by lower volume and margins from nuclear fuel assemblies and reactor components for the U.S. Government. Engineering, Construction and Industrial Operations' business unit loss increased $227,000 to $16,161,000 primarily due to lower volume and margins from the Engineering and Construction Group's construction, repair and alteration of utility and industrial boilers in the U.S., including cost overruns on the completion of a contract for one U.S. customer, partially offset by improved margins from the Shipbuilding and Industrial Group's shipyard operations. Other business unit income increased $14,668,000 from a loss of $11,120,000 to income of $3,548,000 primarily due to a favorable insurance adjustment of $12,000,000 in the current year and the inclusion of losses in the prior year of businesses that were disposed of during fiscal 1995. JRM's equity in income (loss) of investees decreased $17,231,000 from income of $14,430,000 to a loss of $2,801,000. Both the HeereMac and McDermott-ETPM West, Inc. joint ventures performed at lower levels than in the previous year. The revenues of these two joint ventures declined from $424,145,000 to $318,023,000. HeereMac declined primarily in the U.S. Gulf and Australia. McDermott-ETPM West, Inc. declined in the North Sea, partially offset by increased volume in West Africa. The equity income from these two joint ventures declined from $14,555,000 to $4,873,000. McDermott-ETPM West, Inc.'s equity income decreased as a result of reduced volume and reduced margins. HeereMac's equity income also decreased as a result of reduced volume and reduced margins, but the decrease was not as severe. Both joint ventures are expected to remain at low levels through 1997. Equity in income (loss) of investees also decreased due to foreign currency transaction losses of the CMM Mexican joint venture (which was not a part of JRM's marine construction business in the prior year) and losses 20 21 incurred by several foreign joint ventures which were acquired as part of the merger with Offshore Pipelines, Inc. B&W Operations' equity in income of investees increased $31,905,000 to $35,841,000 primarily due to the Power Generation Group's sale of power purchase contracts back to a local utility this year and a provision for a loss on discontinuing a domestic joint venture in the prior period. Other business unit equity in income of investees includes the results of the CMM Mexican joint venture which was not a part of JRM's marine construction business in the prior year. Interest income decreased $6,452,000 to $19,690,000, primarily due to decreases in investments in government obligations and other investments in the current year and income recognized in the prior year on a receivable from an equity investee and settlement of an interest claim on certain foreign tax refunds. Interest expense increased $15,974,000 to $42,914,000, primarily due to a reduction in accrued interest of $11,300,000 on proposed tax deficiencies that was recorded in the prior year and changes in debt obligations and interest rates prevailing thereon. Minority interest expense increased $4,138,000 to $9,146,000 primarily due to minority shareholder participation in the operating results of JRM in the current year. Other-net increased $25,000,000 to income of $5,564,000 from expense of $19,936,000. This increase was primarily due a loss related to the reduction of estimated products liability asbestos claim recoveries of $14,478,000 from insurers and losses on the sale of investments in the prior period, and gains of $7,337,000 on the disposal of assets in the current year. The provision for income taxes decreased $1,199,000 to $8,803,000, while income before provision for income taxes and cumulative effect of accounting change increased $16,831,000 to $26,689,000. The decrease in the provision for income taxes was in part due to a reappraisal of liabilities in certain foreign tax jurisdictions and the ability to 21 22 recognize income tax benefits on losses in the U.S. in the current period which were limited in the prior period. In addition, McDermott International operates in many different tax jurisdictions. Within these jurisdictions, tax provisions vary because of nominal rates, allowability of deductions, credits and other benefits, and even tax basis (for example, revenues versus income). These variances, along with variances in the mix of income within jurisdictions, are responsible for shifts in the effective tax rate. As a result of these factors, the provision for income taxes was 33% of pretax income for the six months ended September 30, 1995 compared to a provision for income taxes of 101% of pretax income for the six months ended September 30, 1994. Net income increased $19,795,000 from a net loss of $1,909,000 to income of $17,886,000 reflecting the cumulative effect of the adoption of Statement of Financial Accounting Standards No. 112, "Employers' Accounting for Postemployment Benefits," of $1,765,000 in the prior year, in addition to the other items mentioned above. Backlog
9/30/95 3/31/95 ------- ------- (In thousands) Business Unit Backlog: J. Ray McDermott, S.A. $ 834,934 $ 1,002,968 B&W Operations 1,890,932 1,952,580 Engineering, Construction and Industrial Operations 512,610 623,719 Other (including Transfer Eliminations) (104,165) (105,435) - ------------------------------------------------------------------------------------------------------------ TOTAL BACKLOG $ 3,134,311 $ 3,473,832 ============================================================================================================
JRM's backlog at September 30, 1995 and March 31, 1995 was $834,934,000 and $1,002,968,000, respectively. Not included in JRM's backlog at September 30, 1995 and March 31, 1995 was backlog relating to contracts to be performed by unconsolidated joint ventures of approximately $1,208,000,000 and $922,000,000, respectively. JRM's markets are expected to be at low levels during fiscal 1996. The overcapacity of marine equipment worldwide will continue to result in a competitive environment and put pressure on profit margins. 22 23 B&W Operations' backlog at September 30, 1995 was $1,890,932,000 compared to $1,952,580,000 at March 31, 1995. B&W Operations' foreign markets for industrial and utility boilers are expected to remain strong as well as the U.S. market for replacement nuclear steam generators. Domestic utility markets remain weak. At September 30, 1995 this business unit's backlog with the U.S. Government was $703,943,000 (of which $105,876,000 had not been funded). U.S. Government budget reductions have negatively affected this business unit's government operations. Engineering, Construction and Industrial Operations' backlog at September 30, 1995 was $512,610,000 compared to $623,719,000 at March 31, 1995. The current competitive economic environment in the U.S. has negatively affected demand for its construction activities. At September 30, 1995 this business unit's backlog with the U.S. Government was $60,074,000 (of which $5,717,000 had not been funded). Liquidity and Capital Resources During the six months ended September 30, 1995, McDermott International's cash and cash equivalents increased $21,645,000 to $107,554,000 and total debt decreased $43,230,000 to $943,457,000. During this period, McDermott International used cash of $212,974,000 in operating activities; $163,047,000 for repayment of long-term debt; $38,666,000 for additions to property, plant and equipment; and $31,142,000 for dividends on International's common and preferred stock. During the six months ended September 30, 1995, McDermott International sold approximately $348,000,000 of its investments to repay outstanding short-term debt obligations. Increases in accounts receivable are primarily due to a reduction of approximately $53,000,000 of qualified accounts receivable sold under the terms of an agreement with a U.S. bank. Increases in net contracts in progress and advance billings were primarily due to the timing of billings in contracts performed on the Foinaven Development program and in the Far East. The reduction in accrued liabilities included settlement of liabilities assumed during the acquisition of Offshore Pipelines, Inc. 23 24 Pursuant to an agreement with a majority of its principal insurers, McDermott International negotiates and settles products liability asbestos claims from non-employees and bills these amounts to the appropriate insurers. As a result of collection delays inherent in this process, reimbursement is usually delayed for three months or more. The number of claims had declined moderately since fiscal year 1990, but has increased during the second half of fiscal year 1995 and the first half of fiscal year 1996. Management believes, based on information currently available, that the recent increase represents an acceleration in the timing of the receipt of these claims, but does not represent an increase in its total estimated liability. The average amount of these claims (historical average of approximately $5,000 per claim over the last three years) has continued to rise. Claims paid during the six months ended September 30, 1995 were $74,112,000, of which $65,891,000 has been recovered or is due from insurers. At September 30, 1995, receivables of $51,511,000 were due from insurers for reimbursement of settled claims. Estimated liabilities for pending and future non-employee products liability asbestos claims are derived from McDermott International's claims history and constitute management's best estimate of such future costs. Estimated insurance recoveries are based upon analysis of insurers providing coverage of the estimated liabilities. Inherent in the estimate of such liabilities and recoveries are expected trends in claim severity and frequency and other factors, including recoverability from insurers, which may vary significantly as claims are filed and settled. Accordingly, the ultimate loss may differ materially from amounts provided in the consolidated financial statements. Settlement of the liability is expected to occur over approximately the next 25 years. The collection delays, and the amount of claims paid for which insurance recovery is not probable, have not had a material adverse effect on McDermott International's liquidity, and management believes, based on information currently available, that they will not have a material adverse effect on liquidity in the future. McDermott International's expenditures for property, plant and equipment decreased $8,483,000 to $38,666,000 for the six months ended September 30, 1995 compared with the same period last year. These expenditures included $8,669,000 for installation of a new pipe reel system on a marine barge. In addition to expenditures for property, plant and equipment, McDermott International expended $9,802,000 in the six months ended September 30, 1995 for the conversion of a barge to a floating production unit 24 25 which upon completion will be leased to a third party. The barge conversion is financed by a $16,700,000 note, payable in 30 monthly installments beginning with the completion of the conversion. Interest is at Libor plus 2%. There were no borrowings against this facility at September 30, 1995. In November 1995, the outstanding borrowings against this facility were $10,724,000. At September 30, and March 31, 1995, The Babcock & Wilcox Company had sold, with limited recourse, an undivided interest in a designated pool of qualified accounts receivable of approximately $122,000,000 and $175,000,000, respectively, under the terms of an agreement with a U.S. bank. The maximum sales limit available under the agreement was reduced during the period from $225,000,000 to $175,000,000. During November 1995, The Babcock & Wilcox Company and the bank amended the agreement to provide for an annual renewal of the program. At September 30, and March 31, 1995, International and its subsidiaries, had available to them various uncommitted short-term lines of credit totaling $401,854,000 and $373,867,000, respectively. Borrowings by McDermott International against these lines of credit at September 30 and March 31, 1995 were $198,347,000 and $63,025,000, respectively. In addition, The Babcock & Wilcox Company had available to it an unsecured and committed revolving credit facility. During the quarter ended September 30, 1995, the facility was amended to increase the commitment to $150,000,000 and to extend the agreement to March 31, 1999. It is a condition to borrowing under this revolving credit facility that the borrower's tangible net worth, debt to capitalization, and interest coverage as defined in the agreement meet or exceed certain covenant requirements. There were no borrowings outstanding against this facility at September 30 and March 31, 1995. Delta Catalytic Corporation had available from a certain Canadian bank an unsecured and committed revolving credit facility of $14,925,000 which expires on May 31, 1997. At September 30 and March 31, 1995, borrowings outstanding against this facility were $14,925,000 and $7,420,000, respectively. In October 1995, Delta Catalytic repaid and cancelled this facility and replaced it with two unsecured and uncommitted short-term line of credit facilities aggregating $29,851,000, which are subject to annual renewal. JRM had available to it a $150,000,000 unsecured and 25 26 committed revolving credit facility of which $80,000,000 was outstanding at September 30, 1995. JRM is restricted, as a result of the consolidated tangible net worth covenant in this agreement, in its ability to transfer funds to International and its subsidiaries through cash dividends or through unsecured loans or investments. As approximately $59,000,000 of its net assets were not subject to this restriction, it is not expected to impact JRM's ability to make preferred dividend payments. McDermott International maintains an investment portfolio of government obligations which is classified as available for sale under SFAS No. 115. The fair value of short-term investments and the long-term portfolio at September 30, 1995 was $375,207,000 (amortized cost $376,098,000). At September 30, 1995, approximately $136,281,000 fair value of these obligations were pledged to secure a letter of credit in connection with a long-term loan and certain reinsurance agreements. In addition, McDermott International had obligations of $45,651,000 under short-term repurchase agreements which were secured by government obligations with a fair value of $47,332,000 at September 30, 1995. The Delaware Company is restricted, as a result of covenants in certain credit agreements, in its ability to transfer funds to International and its subsidiaries through cash dividends or through unsecured loans or investments. At September 30, 1995, substantially all of the net assets of the Delaware Company were subject to such restrictions. It is not expected that these restrictions will have any significant effect on International's liquidity. Working capital increased by $228,070,000 from a deficit of $40,790,000 at March 31, 1995 to $187,280,000 at September 30, 1995 reflecting the use of $278,000,000 of long-term investments to repay short-term debt. During the remainder of fiscal year 1996, McDermott International expects to obtain funds to meet capital expenditure, working capital and debt maturity requirements from operating activities, its short-term investment portfolio and additional borrowings from existing lines of credit. Leasing agreements for equipment, which are short-term in nature, are not expected to impact McDermott International's liquidity nor capital resources. 26 27 McDermott International has provided a valuation allowance for deferred tax assets which cannot be realized through carrybacks and future reversals of existing taxable temporary differences. Management believes that remaining deferred tax assets in all other tax jurisdictions are realizable through carrybacks and future reversals of existing taxable temporary differences, and, if necessary, the implementation of tax planning strategies involving sales and sale/leasebacks of appreciated assets. A major uncertainty that affects the ultimate realization of deferred tax assets is the possibility of declines in value of appreciated assets involved in identified tax planning strategies. This factor has been considered in determining the valuation allowance. Management will continue to assess the adequacy of the valuation allowance on a quarterly basis. In March 1995, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards ("SFAS") No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of," effective for fiscal years beginning after December 15, 1995. SFAS No. 121 requires that long-lived assets and certain identifiable intangibles to be held and used by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. SFAS No.121 also applies to similar assets that are held for disposal, except for the assets of a discontinued operation. McDermott International has not yet finalized its review of the impact of this statement, but it is not expected to have a material impact on the consolidated financial statements. 27 28 PART II MCDERMOTT INTERNATIONAL, INC. OTHER INFORMATION No information is applicable to Part II for the current quarter, except as noted below: Item 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibit 11 - Calculation of Earnings (Loss) Per Common and Common Equivalent Share - Page 31 Exhibit 27 - Financial Data Schedule (b) Reports on Form 8-K There were no current reports on Form 8-K filed during the three months ended September 30, 1995. Signatures 28 29 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. McDERMOTT INTERNATIONAL, INC. ----------------------------- (REGISTRANT) Date: 11/10/95 By: s/ Daniel R. Gaubert -------- ----------------------------------- (SIGNATURE) Daniel R. Gaubert Vice President, Finance and Controller 29 30 EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION ----------- ----------- 11 - Calculation of Earnings (Loss) Per Common and Common Equivalent Share 27 - Financial Data Schedule
30 EX-11 2 CALCULATION OF EARNINGS PER SHARE 1 EXHIBIT 11 MCDERMOTT INTERNATIONAL, INC. CALCULATION OF EARNINGS (LOSS) PER COMMON AND COMMON EQUIVALENT SHARE (In thousands, except shares and per share amounts) PRIMARY AND FULLY DILUTED
THREE SIX MONTHS ENDED MONTHS ENDED ---------------------- ------------------------ 9/30/95 9/30/94 9/30/95 9/30/94 ------- ------- ------- ------- Income (loss) before cumulative effect of accounting change $ 9,054 $ (3,262) $ 17,886 $ (144) Less dividend requirements of preferred stock, Series C 2,067 2,067 4,133 4,133 - --------------------------------------------------------------------------------------------------------------------- Income (loss) before cumulative effect of accounting change applicable to common stock 6,987 (5,329) 13,753 (4,277) Cumulative effect of accounting change - - - (1,765) - --------------------------------------------------------------------------------------------------------------------- Net income (loss) for primary computation $ 6,987 $ (5,329) $ 13,753 $ (6,042) ===================================================================================================================== Weighted average number of common shares outstanding during the period 54,197,329 53,568,530 54,107,556 53,523,543 Common stock equivalents of stock options and stock appreciation rights based on "treasury stock" method 162,310 - 278,817 - - --------------------------------------------------------------------------------------------------------------------- Weighted average number of common and common equivalent shares outstanding during the period 54,359,639 53,568,530 54,386,373 53,523,543 ===================================================================================================================== Earnings (loss) per common and common equivalent share: (1) Income (loss) before cumulative effect of accounting change $ 0.13 $ (0.10) $ 0.25 $ (0.08) Accounting change - - - (0.03) - --------------------------------------------------------------------------------------------------------------------- Net income (loss) $ 0.13 $ (0.10) $ 0.25 $ (0.11) =====================================================================================================================
(1) Earnings (loss) per common and common equivalent share assuming full dilution are the same for the periods presented. 31 EX-27 3 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MCDERMOTT INTERNATIONAL'S SEPTEMBER 30, 1995 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 1,000 6-MOS MAR-31-1996 SEP-30-1995 107,554 70,606 592,772 49,014 413,868 1,557,429 2,252,559 1,363,394 4,528,690 1,374,853 579,672 0 2,875 54,251 659,587 4,528,690 1,623,230 1,623,230 1,602,899 1,602,899 0 0 42,914 26,689 8,803 17,886 0 0 0 17,886 0.25 0.25
-----END PRIVACY-ENHANCED MESSAGE-----