-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, aZaITv8GJS6RtximQk5swwMREZ2My7m5aAmy8bMC+jelW2em4kOsH2ahaieUuHX2 Lghij2xRm+z5xbfn5zaBYw== 0000950134-95-001621.txt : 199507180000950134-95-001621.hdr.sgml : 19950718 ACCESSION NUMBER: 0000950134-95-001621 CONFORMED SUBMISSION TYPE: 10-K405/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950717 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-K405/A SEC ACT: SEC FILE NUMBER: 001-08430 FILM NUMBER: 95554294 BUSINESS ADDRESS: STREET 1: 1010 COMMON ST CITY: NEW ORLEANS STATE: LA ZIP: 70112 BUSINESS PHONE: 5045875400 MAIL ADDRESS: STREET 1: P O BOX 61961 CITY: NEW ORLEANS STATE: LA ZIP: 70161 10-K405/A 1 AMENDMENT NO.2 TO FORM 10-K 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 F O R M 1 0 - K/A-2 [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED) For the fiscal year ended March 31, 1995 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED) 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 Common 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. [X] The aggregate market value of voting stock held by non-affiliates of the registrant was $1,444,216,074 as of April 26, 1995. The number of shares outstanding of the Company's Common Stock at April 26, 1995 was 54,063,698. DOCUMENTS INCORPORATED BY REFERENCE The Proxy Statement for the 1995 Annual Meeting of Shareholders is incorporated by reference into Part III of this report. 2 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 Signature of Registrant 9 Exhibit 99 - Additional Exhibits Supplementary Financial Information on Panamanian Securities Regulations
All schedules other than the above have been omitted because they are not required or the information is included in the Consolidated Financial Statements, Notes thereto or in the Form 10-K/A-1 filed on June 28, 1995. -1- 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, 1995 and 1994, and for each of the three years in the period ended March 31, 1995, and have issued our report thereon dated May 24, 1995 which contained an explanatory paragraph regarding estimated future costs for non-employee products liability asbestos claims described in Note 1 to the consolidated financial statements. Our audits also included the financial statement schedule listed in the Index to Financial Statement Schedules and Exhibits in this Form 10-K/A-2. 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. The ultimate loss from non-employee products liability asbestos claims as explained in our report on the basic financial statements may differ materially from the amount provided in the financial statement schedule. ERNST & YOUNG LLP New Orleans, Louisiana May 24, 1995 -2- 4 Schedule I McDERMOTT INTERNATIONAL, INC. (PARENT COMPANY ONLY) BALANCE SHEET MARCH 31, 1995 AND 1994
ASSETS - ------ 1995 1994 ---- ---- (In thousands) Current Assets: Cash and cash equivalents $ 212 $ 2,413 Accounts receivable - trade 110 13,819 Accounts receivable - other 421 31,526 Accounts receivable from subsidiaries 649,355 718,646 Contracts in progress 2 56,377 Other current assets 518 955 - ------------------------------------------------------------------------------------------------------------------- Total Current Assets 650,618 823,736 - ------------------------------------------------------------------------------------------------------------------- Investments in Subsidiaries and Other Investees, at Equity 1,239,036 851,469 - ------------------------------------------------------------------------------------------------------------------- Property, Plant and Equipment, at Cost: Buildings 3,420 11,486 Machinery and equipment 10,405 73,345 Property under construction 42 567 - ------------------------------------------------------------------------------------------------------------------- 13,867 85,398 Less accumulated depreciation 13,192 67,954 - ------------------------------------------------------------------------------------------------------------------- Net Property, Plant and Equipment 675 17,444 - ------------------------------------------------------------------------------------------------------------------- Notes Receivable from Subsidiaries and Other Investees 270,802 251,510 - ------------------------------------------------------------------------------------------------------------------- Other Assets 31,932 8,307 - ------------------------------------------------------------------------------------------------------------------- TOTAL $ 2,193,063 $ 1,952,466 ===================================================================================================================
See accompanying notes to condensed financial information. -3- 5 Schedule I LIABILITIES AND STOCKHOLDERS' EQUITY
1995 1994 ---- ---- (In thousands) Current Liabilities: Notes payable and current maturities of long-term debt $ 18,500 $ 35,970 Accounts payable 2,194 21,873 Accounts payable to subsidiaries 1,324,156 1,063,774 Accrued liabilities - other 23,250 73,277 Advance billings on contracts 2 32,037 Income taxes 213 29,832 - ------------------------------------------------------------------------------------------------------------------- Total Current Liabilities 1,368,315 1,256,763 - ------------------------------------------------------------------------------------------------------------------- Long-Term Debt 55,300 73,800 - ------------------------------------------------------------------------------------------------------------------- Notes Payable to Subsidiaries 47,784 62,712 - ------------------------------------------------------------------------------------------------------------------- Other Liabilities 11,085 16,933 - ------------------------------------------------------------------------------------------------------------------- Contingencies - ------------------------------------------------------------------------------------------------------------------- Stockholders' Equity: Preferred stock 2,875 2,875 Common stock 53,960 53,444 Capital in excess of par value 936,134 730,987 Deficit (249,061) (196,216) Minimum pension liability (391) (931) Net unrealized loss on investments (8,050) - Currency translation adjustments (24,888) (47,901) - ------------------------------------------------------------------------------------------------------------------- Total Stockholders' Equity 710,579 542,258 - ------------------------------------------------------------------------------------------------------------------- TOTAL $ 2,193,063 $ 1,952,466 ===================================================================================================================
-4- 6 Schedule I McDERMOTT INTERNATIONAL, INC. (PARENT COMPANY ONLY) STATEMENT OF INCOME (LOSS) FOR THE THREE FISCAL YEARS ENDED MARCH 31, 1995
1995 1994 1993 ---- ---- ---- (In thousands) Revenues $ 41,855 $ 32,635 $ 201,339 - ------------------------------------------------------------------------------------------------------------------------- Costs and Expenses: Cost of operations (excluding depreciation and amortization) 34,135 29,571 188,879 Depreciation and amortization 4,698 5,422 3,319 Selling, general and administrative expenses 8,623 27,402 20,066 - ------------------------------------------------------------------------------------------------------------------------- 47,456 62,395 212,264 - ------------------------------------------------------------------------------------------------------------------------- (5,601) (29,760) (10,925) Equity in Income of Subsidiaries and Other Investees 877 107,942 62,141 - ------------------------------------------------------------------------------------------------------------------------- Operating Income (Loss) (4,724) 78,182 51,216 - ------------------------------------------------------------------------------------------------------------------------- Other Income (Expense): Interest income 25,047 19,003 21,693 Interest expense (13,916) (10,473) (10,461) Other - net 9,038 (292) 17,004 - ------------------------------------------------------------------------------------------------------------------------- 20,169 8,238 28,236 - ------------------------------------------------------------------------------------------------------------------------- Income before Provision for (Benefit from) Income Taxes, Extraordinary Items, and Cumulative Effect of Accounting Changes 15,445 86,420 79,452 Provision for (Benefit from) Income Taxes 4,569 (3,536) 12,129 - ------------------------------------------------------------------------------------------------------------------------- Income before Extraordinary Items and Cumulative Effect of Accounting Changes 10,876 89,956 67,323 Extraordinary Items - - (10,431) Cumulative Effect of Accounting Changes (1,765) (100,750) (245,624) - ------------------------------------------------------------------------------------------------------------------------- Net Income (Loss) $ 9,111 $ (10,794) $ (188,732) =========================================================================================================================
See accompanying notes to condensed financial information -5- 7 Schedule I McDERMOTT INTERNATIONAL, INC. (PARENT COMPANY ONLY) STATEMENT OF CASH FLOWS FOR THE THREE FISCAL YEARS ENDED MARCH 31, 1995 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
1995 1994 1993 ---- ---- ---- (In thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ 9,111 $ (10,794) $ (188,732) - ------------------------------------------------------------------------------------------------------------------------- Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 4,698 5,422 3,319 Equity in income or loss of subsidiaries and other investees, less dividends 10,922 (101,787) (36,438) Provision for deferred taxes (627) (2,997) 1,278 Cumulative effect of accounting changes 1,765 100,750 245,624 Extraordinary items - - 10,431 Other (3,048) (346) 1,167 Changes in assets and liabilities: Net contracts in progress and advance billings 14,718 (14,940) (11,981) Accounts and notes receivable 96,338 88,034 (53,471) Accounts payable 67,603 (61,860) 85,876 Income taxes (28,992) (757) 4,780 Other, net (55,971) 5,142 (1,196) - ------------------------------------------------------------------------------------------------------------------------- NET CASH PROVIDED BY OPERATING ACTIVITIES 116,517 5,867 60,657 - ------------------------------------------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of Northern Ocean Services Limited - (58,040) - Proceeds from sale and disposal of assets 8,334 368 11,102 Purchases of property, plant and equipment (562) (2,120) (13,005) Investments in subsidiaries (200) (100,069) - Increase in loans to subsidiaries (16,600) - - Other - - 2,122 - ------------------------------------------------------------------------------------------------------------------------- NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (9,028) (159,861) 219 - -------------------------------------------------------------------------------------------------------------------------
-6- 8 CONTINUED INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
1995 1994 1993 ---- ---- ---- (In thousands) CASH FLOWS FROM FINANCING ACTIVITIES: Payment of long-term debt $ (16,600) $ (15,000) $ (14,258) Increase (decrease) in short-term borrowing (19,370) 18,596 (284) Issuance of common stock 3,194 16,441 8,034 Issuance of preferred stock - 140,066 - Increases (decreases) in loans from subsidiaries (14,928) 50,301 (788) Dividends paid (61,827) (56,773) (51,528) Other (159) - - - ------------------------------------------------------------------------------------------------------------------------- NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (109,690) 153,631 (58,824) - ------------------------------------------------------------------------------------------------------------------------- EFFECTS OF EXCHANGE RATE CHANGES ON CASH - (92) - - ------------------------------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (2,201) (455) 2,052 - ------------------------------------------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 2,413 2,868 816 - ------------------------------------------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS AT END OF YEAR $ 212 $ 2,413 $ 2,868 ========================================================================================================================= SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest, including intercompany interest (net of amount capitalized) $ 14,186 $ 10,989 $ 12,702 Income taxes, net of refunds $ 252 $ 371 $ 5,878 =========================================================================================================================
See accompanying notes to condensed financial information. -7- 9 Schedule I McDERMOTT INTERNATIONAL, INC. (PARENT COMPANY ONLY) NOTES TO CONDENSED FINANCIAL INFORMATION FOR THE THREE FISCAL YEARS ENDED MARCH 31, 1995 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: 1995 1994 ---- ---- (In thousands) 10.375% Note payable due 1998 (Secured) $ 73,800 $ 90,400 Less: Amounts due within one year 18,500 16,600 -------------- -------------- $ 55,300 $ 73,800 ============== ==============
Maturities of long-term debt during the years subsequent to March 31, 1995 are as follows: 1996 - $18,500,000; 1997 - $20,500,000; 1998 - $22,600,000; 1999 - $12,200,000. NOTE 3 - CONTINGENCIES McDermott International, Inc. is contingently liable under standby letters of credit totaling $3,473,000 at March 31, 1995 issued in the normal course of business. McDermott International, Inc. has guaranteed the indebtedness of certain of its subsidiaries and other investees. At March 31, 1995, these guarantees included $40,817,000 of loans to and $41,242,000 of standby letters of credit issued by certain subsidiaries and other investees. NOTE 4 - DIVIDENDS RECEIVED McDermott International, Inc. received dividends from its consolidated subsidiaries of $11,799,000, $138,438,000 (including $132,283,000 of investments) and $25,703,000 for the years ended March 31, 1995, March 31, 1994 and March 31, 1993, respectively. -8- 10 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. (REGISTRANT) By: /s/ Daniel R. Gaubert Daniel R. Gaubert Vice President, Finance and Controller July 14, 1995 -9- 11 EXHIBIT INDEX Exhibit 99 - Additional Exhibits Supplementary Financial Information on Panamanian Securities Regulations EX-99 2 ADDITIONAL EXHIBITS 1 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. 3/31/95 ------- (Unaudited) (In thousands) ARTICLE 29 ---------- RULE #9 - INVESTMENTS IN SUBSIDIARIES AND OTHER - ----------------------------------------------- INVESTEES AT EQUITY - ---------------------- Head Office (Parent Company) $ 1,239,036 Subsidiaries and Affiliates - Eliminations/Other (1,076,007) -------------- McDERMOTT INTERNATIONAL, INC. $ 163,029 ============== RULE #25C - PARENT COMPANY ACCOUNTS PAYABLE TO - ---------------------------------------------- SUBSIDIARIES - --------------- Head Office (Parent Company) $ 1,362,431 Eliminations/Other (1,362,431) -------------- McDERMOTT INTERNATIONAL, INC. $ -0- ============== ARTICLE 30 ---------- (c) - OPERATING EXPENSES BY SEGMENT - ----------------------------------- Power Generation Systems and Equipment $ 1,642,425 Marine Construction Services 1,346,300 Eliminations (10,474) -------------- McDERMOTT INTERNATIONAL, INC. $ 2,978,251 ============== RULE #40 - OPERATING REVENUES - ----------------------------- Head Office (Parent Company) $ 41,855 Subsidiaries and Affiliates 3,004,626 Eliminations/Other (2,801) -------------- McDERMOTT INTERNATIONAL, INC. $ 3,043,680 ============== RULE #41 - OPERATING EXPENSES - ----------------------------- Head Office (Parent Company) $ 47,456 Subsidiaries and Affiliates 2,992,211 Eliminations/Other (2,801) -------------- McDERMOTT INTERNATIONAL, INC. $ 3,036,866 ==============
-10- 2
F.Y.E. 3/31/95 ------- (Unaudited) (In thousands) ARTICLE 30 - Continued ---------- RULE #43 - DIVIDENDS RECEIVED - ----------------------------- Head Office (Parent Company) from Subsidiaries and Affiliates $ 11,799 Subsidiaries and Affiliates from Other Corporations 76,481 Eliminations/Other (11,799) ------------- McDERMOTT INTERNATIONAL, INC. $ 76,481 ============= RULE #44 - INTEREST INCOME - -------------------------- Head Office (Parent Company): from Subsidiaries and Affiliates $ 19,992 from Other Corporations 5,055 Subsidiaries and Affiliates from Other Corporations 47,685 Eliminations (19,992) ------------- McDERMOTT INTERNATIONAL, INC. $ 52,740 ============= RULE #46 - OTHER MISCELLANEOUS REVENUES - --------------------------------------- Gain on Asset Disposals during 1995 - Net $ 1,874 Foreign Currency Transaction Losses - Net (1,057) Bank Fees and Discounts on Sale of Receivables (9,709) Provision for reduction in estimated insurance recoveries (14,478) Other Items - Net (9,921) ------------- McDERMOTT INTERNATIONAL, INC. $ (33,291) =============
RULE #51 - INVESTMENTS IN UNCONSOLIDATED AFFILIATES AT EQUITY
(Unaudited) (In thousands) Balance at 3/31/94 $ 128,006 Additional Investments 48,130 Equity Income 33,852 Dividends Received (76,481) Other Changes 29,522 ----------- Balance at 3/31/95 $ 163,029 ===========
-11- -----END PRIVACY-ENHANCED MESSAGE-----