0000008411-13-000123.txt : 20131108 0000008411-13-000123.hdr.sgml : 20131108 20131107180016 ACCESSION NUMBER: 0000008411-13-000123 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20131107 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20131108 DATE AS OF CHANGE: 20131107 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ATWOOD OCEANICS INC CENTRAL INDEX KEY: 0000008411 STANDARD INDUSTRIAL CLASSIFICATION: DRILLING OIL & GAS WELLS [1381] IRS NUMBER: 741611874 STATE OF INCORPORATION: TX FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13167 FILM NUMBER: 131202008 BUSINESS ADDRESS: STREET 1: 15835 PARK TEN PL DR STREET 2: SUITE 200 CITY: HOUSTON STATE: TX ZIP: 77084 BUSINESS PHONE: 2817497845 MAIL ADDRESS: STREET 1: 15835 PARK TEN PL DR STREET 2: SUITE 200 CITY: HOUSTON STATE: TX ZIP: 77084 8-K 1 atw-201309308xk.htm 4TH QTR FY13 EARNINGS ATW-2013.09.30 8-K
 
 
 
 
 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549
____________

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934


DATE OF EARLIEST EVENT REPORTED: November 8, 2013


ATWOOD OCEANICS, INC.
(Exact name of registrant as specified in its charter)

TEXAS
(State or other jurisdiction of incorporation or organization)

COMMISSION FILE NUMBER 1-13167

Internal Revenue Service – Employer Identification No. 74-1611874

15835 Park Ten Place Drive
Houston, Texas, 77084
(Address of Principal Executive Offices)

(281) 749-7800
(Registrant’s Telephone Number,
Including Area Code)

N/A
(Former Name or Former Address, if Changed Since Last Report)
____________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


ITEM 2.02    RESULTS OF OPERATIONS AND FINANCIAL CONDITION

Our press release dated November 8, 2013, concerning financial results for the fourth quarter ended September 30, 2013, furnished as Exhibit 99.1, is incorporated herein by reference.

ITEM 7.01 REGULATION FD DISCLOSURE
We are currently engaged in discussions with the staff of the Securities and Exchange Commission (“SEC”) regarding an unresolved staff comment with respect to our Annual Report for the fiscal year ended September 30, 2012 relating to our revenue and expense recognition policies for day rates received and the corresponding expenses incurred during the initial mobilization of the Atwood Condor during the fourth quarter of fiscal year 2012. While we continue to work with the SEC staff to resolve this comment, we may in the future determine to revise our revenue and expense recognition policies and revise our historical financial statements accordingly, which would result in a positive impact to our results of operations for the quarter and fiscal year ended September 30, 2013 and a negative impact to our results for the quarter and fiscal year ended September 30, 2012. However, there will be no change to the timing or amount of cash flows under this contract.

This information is being furnished under Regulation FD and should not be deemed to be filed under Section 19 of the Exchange Act.

ITEM 9.01     EXHIBITS
        
EXHIBIT 99.1 PRESS RELEASE DATED NOVEMBER 8, 2013



2

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 hereunto duly authorized.


ATWOOD OCEANICS, INC.
(Registrant)



/s/ Mark L. Mey
Mark L. Mey
Senior Vice President

DATE: November 8, 2013

3

EXHIBIT INDEX

EXHIBIT NO.
DESCRIPTION
99.1
Press Release dated November 8, 2013


4
 EX-99.1 2 exhibit99120130930.htm FINANCIAL STATEMENTS Exhibit 99.1 2013.09.30


EXHIBIT 99.1
Houston, Texas
November 8, 2013

FOR IMMEDIATE RELEASE - EARNINGS

ATWOOD OCEANICS, INC., announced today that the Company earned net income of $101.9 million or $1.57 per diluted share, on revenues of $292.7 million for the quarter ended September 30, 2013 compared to net income of $90.0 million or $1.37 per diluted share on revenues of $272.7 million for the quarter ended June 30, 2013 and compared to net income of $95.5 million or $1.45 per diluted share, on revenues of $252.5 million for the quarter ended September 30, 2012. For the twelve months ended September 30, 2013, the Company earned net income of $350.2 million or $5.32 per diluted share, on revenues of $1,063.7 million compared to net income of $272.2 million or $4.14 per diluted share, on revenues of $787.4 million for the twelve months ended September 30, 2012.

 
For the Three Months Ended
 
 
 
(Unaudited)
 
 
(In thousands, except per share amounts)
September 30,
2013
 
June 30,
2013
 
September 30,
2012
Revenues
$
292,721

 
$
272,688

 
$
252,525

Income before Income Taxes
118,152

 
105,130

 
109,891

Provision for Income Taxes
(16,259
)
 
(15,149
)
 
(14,365
)
Net Income
$
101,893

 
$
89,981

 
$
95,526

 
 
 
 
 
 
Earnings per Common Share -
 
 
 
 
 
      Basic
$
1.59

 
$
1.38

 
$
1.46

      Diluted
$
1.57

 
$
1.37

 
$
1.45



 
For the Twelve Months Ended
 
 
 
(Unaudited)
 
 
(In thousands, except per share amounts)
September 30,
2013
 
 
 
September 30,
2012
Revenues
$
1,063,663

 
 
 
$
787,421

Income before Income Taxes
404,801

 
 
 
313,304

Provision for Income Taxes
(54,577
)
 
 
 
(41,133
)
Net Income
$
350,224

 
 
 
$
272,171

 
 
 
 
 
 
Earnings per Common Share -
 
 
 
 
 
      Basic
$
5.38

 
 
 
$
4.17

      Diluted
$
5.32

 
 
 
$
4.14


5


ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
Three Months Ended September 30,
 
Twelve Months Ended September 30,
(In thousands, except per share amounts)
2013
 
2012
 
2013
 
2012
REVENUES:
 
 
 
 
 
 
 
Contract drilling
$
279,318

 
$
241,496

 
$
1,017,923

 
$
755,969

Revenues related to reimbursable expenses
13,403

 
11,029

 
45,740

 
31,452

Total revenues
292,721

 
252,525

 
1,063,663

 
787,421

 
 
 
 
 
 
 
 
COSTS AND EXPENSES:
 
 
 
 
 
 
 
Contract drilling
112,186

 
95,367

 
426,198

 
328,485

Reimbursable expenses
9,387

 
6,752

 
32,727

 
18,694

Depreciation
31,098

 
24,180

 
117,510

 
70,599

General and administrative
12,634

 
12,275

 
56,786

 
49,776

Other, net
1,039

 
(680
)
 
971

 
457

 
166,344

 
137,894

 
634,192

 
468,011

 
 
 
 
 
 
 
 
OPERATING INCOME
$
126,377

 
$
114,631

 
$
429,471

 
$
319,410

 
 
 
 
 
 
 
 
OTHER INCOME (EXPENSE)
 
 
 
 
 
 
 
Interest expense, net of capitalized interest
(8,256
)
 
(4,837
)
 
(24,903
)
 
(6,460
)
Interest Income
31

 
97

 
233

 
354

 
(8,225
)
 
(4,740
)
 
(24,670
)
 
(6,106
)
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
118,152

 
109,891

 
404,801

 
313,304

PROVISION FOR INCOME TAXES
16,259

 
14,365

 
54,577

 
41,133

NET INCOME
$
101,893

 
$
95,526

 
$
350,224

 
$
272,171

 
 
 
 
 
 
 
 
EARNINGS PER COMMON SHARE:
 
 
 
 
 
 
 
Basic
$
1.59

 
$
1.46

 
$
5.38

 
$
4.17

Diluted
$
1.57

 
$
1.45

 
$
5.32

 
$
4.14

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
Basic
64,024

 
65,407

 
65,073

 
65,267

Diluted
64,895

 
65,982

 
65,845

 
65,781


6


ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED ANALYSIS OF REVENUES AND DRILLING COSTS
(Unaudited)
 
REVENUES
 
Three Months Ended
 
Twelve Months Ended
(In millions)
September 30,
2013
 
June 30,
2013
 
September 30,
2012
 
September 30,
2013
 
September 30,
2012
Atwood Condor
$
47.9

 
$
42.5

 
$
32.8

 
$
170.2

 
$
32.7

Atwood Osprey
41.2

 
44.5

 
46.0

 
165.0

 
166.5

Atwood Eagle
37.1

 
31.5

 
32.7

 
131.0

 
132.9

Atwood Falcon
32.1

 
32.1

 
35.2

 
133.7

 
93.4

Atwood Hunter
39.6

 
38.7

 
50.1

 
150.3

 
190.2

Atwood Aurora
14.2

 
12.2

 
14.6

 
50.6

 
53.7

Atwood Beacon
14.1

 
14.0

 
17.1

 
56.9

 
48.1

Atwood Mako
13.4

 
13.2

 
4.1

 
52.9

 
4.1

Atwood Manta
14.0

 
13.0

 
—

 
42.8

 
—

Atwood Orca
14.6

 
9.9

 
—

 
24.5

 
—

Vicksburg
11.1

 
9.9

 
8.9

 
40.1

 
34.3

Reimbursable
13.4

 
11.2

 
11.0

 
45.7

 
31.5

 
$
292.7

 
$
272.7

 
$
252.5

 
$
1,063.7

 
$
787.4

 
DRILLING COSTS
 
Three Months Ended
 
Twelve Months Ended
(In millions)
September 30,
2013
 
June 30,
2013
 
September 30,
2012
 
September 30,
2013
 
September 30,
2012
Atwood Condor
$
15.7

 
$
16.4

 
$
12.7

 
$
61.0

 
$
12.7

Atwood Osprey
16.2

 
16.8

 
16.8

 
63.8

 
63.4

Atwood Eagle
14.9

 
15.5

 
13.6

 
65.4

 
59.9

Atwood Falcon
14.2

 
16.3

 
13.7

 
58.3

 
52.0

Atwood Hunter
11.8

 
11.0

 
12.1

 
44.5

 
47.2

Atwood Aurora
7.0

 
6.1

 
6.3

 
25.7

 
30.1

Atwood Beacon
8.2

 
7.0

 
11.0

 
33.7

 
32.4

Atwood Mako
4.6

 
4.8

 
2.9

 
19.9

 
2.9

Atwood Manta
4.6

 
4.8

 
—

 
16.6

 
—

Atwood Orca
4.8

 
3.7

 
—

 
8.8

 
—

Vicksburg
4.9

 
4.9

 
5.5

 
19.1

 
20.3

Reimbursable
9.4

 
8.5

 
6.8

 
32.7

 
18.7

Other
5.3

 
2.2

 
0.7

 
9.4

 
7.6

 
$
121.6

 
$
118.0

 
$
102.1

 
$
458.9

 
$
347.2


7


ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
September 30,
2013
 
September 30,
2012
ASSETS
 
 
 
Cash and cash equivalents
$
88,770

 
$
77,871

Accounts receivable
199,689

 
167,186

Income tax receivable
4,672

 
5,750

Inventories of materials and supplies
121,833

 
80,290

Prepaid expenses and deferred costs
38,796

 
39,437

Total current assets
453,760

 
370,534

 
 
 
 
Property and equipment, net
3,164,724

 
2,537,340

 
 
 
 
Other receivables
11,831

 
11,875

Deferred costs and other assets
26,951

 
24,013

Total assets
$
3,657,266

 
$
2,943,762

 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
Accounts payable
$
95,827

 
$
83,592

Accrued liabilities
17,653

 
19,603

Notes payable
8,071

 
5,148

Interest payable
7,945

 
4,875

Income tax payable
15,574

 
9,711

Deferred credits
10,822

 
13,738

Total current liabilities
155,892

 
136,667

 
 
 
 
Long-term debt
1,263,232

 
830,000

Deferred income taxes
7,975

 
8,791

Deferred credits
1,176

 
8,928

Other
21,620

 
19,954

Total long-term liabilities
1,294,003

 
867,673

 
 
 
 
Commitments and contingencies
 
 
 
 
 
 
 
Preferred stock, no par value, 1,000 shares authorized, none outstanding
—

 
—

Common stock, $1.00 par value, 90,000 shares authorized with 64,057 and 65,452 issued and outstanding at September 30, 2013 and 2012, respectively
64,057

 
65,452

Paid-in capital
183,390

 
160,540

Retained earnings
1,961,405

 
1,716,441

Accumulated other comprehensive loss
(1,481
)
 
(3,011
)
Total shareholders' equity
2,207,371

 
1,939,422

Total liabilities and shareholders' equity
$
3,657,266

 
$
2,943,762






8


ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited) 
 
Years Ended September 30,
(In thousands)
2013
 
2012
 
2011
Cash flows from operating activities:
 
 
 
 
 
Net income
$
350,224

 
$
272,171

 
$
271,674

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
Depreciation
117,510

 
70,599

 
43,597

Amortization of debt issuance costs and bond premium
4,184

 
3,625

 
2,363

Amortization of deferred items
1,040

 
(4,337
)
 
3,333

Provision for doubtful accounts
3,871

 
—

 
—

Provision for inventory obsolescence
1,711

 
765

 
735

Deferred income tax benefit
(816
)
 
(989
)
 
(1,065
)
Share-based compensation expense
14,231

 
10,402

 
6,314

Other, net
977

 
457

 
4,847

Change in assets and liabilities:
 
 
 
 
 
Accounts receivable
(36,330
)
 
(80,013
)
 
13,214

Income tax receivable
1,078

 
(119
)
 
10,421

Inventory
(43,254
)
 
(23,395
)
 
(6,249
)
Prepaid expenses
(712
)
 
(6,386
)
 
845

Deferred costs and other assets
(19,706
)
 
(32,597
)
 
(10,379
)
Accounts payable
11,440

 
27,536

 
(1,173
)
Accrued liabilities
1,430

 
(7,096
)
 
4,440

Bond premium
8,500

 
—

 
 
Income tax payable
5,863

 
1,250

 
(17,906
)
Deferred credits and other liabilities
10,869

 
23,730

 
14,777

Net cash provided by operating activities
432,110

 
255,603

 
339,788

 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
Capital expenditures
(745,223
)
 
(785,083
)
 
(514,858
)
Proceeds from sale of assets
147

 
7,646

 
218

Net cash used in investing activities
(745,076
)
 
(777,437
)
 
(514,640
)
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
Proceeds from issuance of bonds
200,000

 
450,000

 
—

Proceeds from bank credit facilities
400,000

 
310,000

 
345,000

Principal payments on bank credit facilities
(175,000
)
 
(450,000
)
 
(55,000
)
Proceeds from notes payable
14,095

 
5,148

 
9,092

Principal payments on notes payable
(11,172
)
 
(5,461
)
 
(3,631
)
Repurchase and retirement of common shares
(107,260
)
 
—

 
—

Proceeds from exercise of stock options
9,224

 
5,546

 
6,192

Debt issuance costs paid
(6,022
)
 
(10,530
)
 
(12,322
)
Net cash provided by financing activities
323,865

 
304,703

 
289,331

Net increase (decrease) in cash and cash equivalents
$
10,899

 
$
(217,131
)
 
$
114,479

Cash and cash equivalents, at beginning of period
$
77,871

 
$
295,002

 
$
180,523

Cash and cash equivalents, at end of period
$
88,770

 
$
77,871

 
$
295,002


9


Atwood Oceanics, Inc. is a global offshore drilling contractor engaged in the drilling and completion of exploratory and developmental oil and gas wells. The company currently owns 13 mobile offshore drilling units and is constructing four ultra-deepwater drillships. The company was founded in 1968 and is headquartered in Houston, Texas. Atwood Oceanics, Inc. common stock is traded on the New York Stock Exchange under the symbol "ATW."




Contact: Mark L. Mey
(281) 749-7902


10