0000008411-14-000059.txt : 20140430 0000008411-14-000059.hdr.sgml : 20140430 20140430162715 ACCESSION NUMBER: 0000008411-14-000059 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20140430 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20140430 DATE AS OF CHANGE: 20140430 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: 14799176 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-201403318xk.htm 2ND QUARTER FY14 EARNINGS ATW-2014.03.31 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: April 30, 2014

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

15011 Katy Freeway, Suite 800
Houston, Texas, 77094
(Address of Principal Executive Offices)

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


____________

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 April 30, 2014, concerning financial results for the second quarter ended March 31, 2014, 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. 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 April 30, 2014



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: April 30, 2014

3

EXHIBIT INDEX

EXHIBIT NO.
DESCRIPTION
99.1
Press Release dated April 30, 2014


4
 EX-99.1 2 exhibit99120140331.htm FINANCIAL STATEMENTS Exhibit 99.1 2014.03.31


EXHIBIT 99.1
Houston, Texas
April 30, 2014

FOR IMMEDIATE RELEASE - EARNINGS

ATWOOD OCEANICS, INC., announced today that the Company earned net income of $73.3 million or $1.13 per diluted share, on revenues of $273.1 million for the quarter ended March 31, 2014 compared to net income of $83.4 million or $1.28 per diluted share on revenues of $284.7 million for the quarter ended December 31, 2013 and compared to net income of $85.5 million or $1.28 per diluted share, on revenues of $253.2 million for the quarter ended March 31, 2013. For the six months ended March 31, 2014, the Company earned net income of $156.7 million or $2.41 per diluted share, on revenues of $557.8 million compared to net income of $158.4 million or $2.39 per diluted share, on revenues of $498.3 million for the six months ended March 31, 2013.

Rob Saltiel, President and CEO, commented, “Our second quarter financial results were affected negatively by start-up issues with the Atwood Advantage that resulted in 22 zero-rate days in March.  The remainder of our rig fleet performed well in the quarter, partially offsetting this lost revenue.”

 
For the Three Months Ended
 
 
 
(Unaudited)
 
 
(In thousands, except per share amounts)
March 31,
2014
 
December 31,
2013
 
March 31,
2013
Revenues
$
273,097

 
$
284,706

 
$
253,161

Income before Income Taxes
97,283

 
94,260

 
97,432

Provision for Income Taxes
(23,983
)
 
(10,863
)
 
(11,913
)
Net Income
$
73,300

 
$
83,397

 
$
85,519

 
 
 
 
 
 
Earnings per Common Share -
 
 
 
 
 
      Basic
$
1.14

 
$
1.30

 
$
1.30

      Diluted
$
1.13

 
$
1.28

 
$
1.28



 
For the Six Months Ended
 
 
 
(Unaudited)
 
 
(In thousands, except per share amounts)
March 31,
2014
 
 
 
March 31,
2013
Revenues
$
557,803

 
 
 
$
498,254

Income before Income Taxes
191,543

 
 
 
181,519

Provision for Income Taxes
(34,846
)
 
 
 
(23,169
)
Net Income
$
156,697

 
 
 
$
158,350

 
 
 
 
 
 
Earnings per Common Share -
 
 
 
 
 
      Basic
$
2.44

 
 
 
$
2.41

      Diluted
$
2.41

 
 
 
$
2.39


5


ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 
Three Months Ended March 31,
 
Six Months Ended March 31,
(In thousands, except per share amounts)
2014
 
2013
 
2014
 
2013
REVENUES:
 
 
 
 
 
 
 
Contract drilling
$
260,062

 
$
242,321

 
$
533,619

 
$
477,115

Revenues related to reimbursable expenses
13,035

 
10,840

 
24,184

 
21,139

Total revenues
273,097

 
253,161

 
557,803

 
498,254

 
 
 
 
 
 
 
 
COSTS AND EXPENSES:
 
 
 
 
 
 
 
Contract drilling
136,966

 
98,561

 
260,128

 
204,499

Reimbursable expenses
9,188

 
8,912

 
17,602

 
14,890

Depreciation
37,231

 
28,482

 
69,775

 
56,060

General and administrative
15,022

 
13,268

 
34,844

 
30,489

Gain on sale of equipment
(34,443
)
 
—

 
(34,079
)
 
—

Other, net
399

 
(20
)
 
(1,602
)
 
(13
)
 
164,363

 
149,203

 
346,668

 
305,925

 
 
 
 
 
 
 
 
OPERATING INCOME
$
108,734

 
$
103,958

 
$
211,135

 
$
192,329

 
 
 
 
 
 
 
 
OTHER INCOME (EXPENSE)
 
 
 
 
 
 
 
Interest expense, net of capitalized interest
(11,502
)
 
(6,547
)
 
(19,713
)
 
(10,955
)
Interest Income
51

 
21

 
121

 
145

 
(11,451
)
 
(6,526
)
 
(19,592
)
 
(10,810
)
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
97,283

 
97,432

 
191,543

 
181,519

PROVISION FOR INCOME TAXES
23,983

 
11,913

 
34,846

 
23,169

NET INCOME
$
73,300

 
$
85,519

 
$
156,697

 
$
158,350

 
 
 
 
 
 
 
 
EARNINGS PER COMMON SHARE:
 
 
 
 
 
 
 
Basic
$
1.14

 
$
1.30

 
$
2.44

 
$
2.41

Diluted
$
1.13

 
$
1.28

 
$
2.41

 
$
2.39

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
Basic
64,238

 
65,733

 
64,175

 
65,631

Diluted
65,031

 
66,589

 
65,028

 
66,341


6


ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED ANALYSIS OF REVENUES AND DRILLING COSTS
 
 
REVENUES
 
Three Months Ended
 
Six Months Ended
(In millions)
March 31,
2014
 
December 31,
2013
 
March 31,
2013
 
March 31,
2014
 
March 31,
2013
Ultra-Deepwater
$
119.9

 
$
87.2

 
$
76.2

 
$
207.1

 
$
159.0

Deepwater
64.0

 
107.6

 
104.0

 
171.6

 
204.0

Jackups
76.2

 
78.8

 
62.1

 
154.9

 
114.1

Reimbursable
13.0

 
11.1

 
10.9

 
24.2

 
21.2

 
273.1

 
284.7

 
253.2

 
557.8

 
498.3

 
DRILLING COSTS
 
Three Months Ended
 
Six Months Ended
(In millions)
March 31,
2014
 
December 31,
2013
 
March 31,
2013
 
March 31,
2014
 
March 31,
2013
Ultra-Deepwater
$
45.9

 
$
35.2

 
$
30.0

 
$
81.1

 
$
59.7

Deepwater
56.6

 
48.8

 
38.7

 
105.4

 
84.4

Jackups
33.3

 
36.6

 
29.8

 
69.9

 
58.1

Reimbursable
9.2

 
8.4

 
8.9

 
17.6

 
14.9

Other
1.2

 
2.6

 
0.1

 
3.7

 
2.3

 
$
146.2

 
$
131.6

 
$
107.5

 
$
277.7

 
$
219.4


7


ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)
March 31,
2014
 
September 30,
2013
ASSETS
 
 
 
Cash and cash equivalents
$
59,635

 
$
88,770

Accounts receivable, net of allowance for doubtful accounts of $679 and $0 at March 31, 2014 and September 30, 2013, respectively
238,569

 
199,689

Income tax receivable
6,215

 
4,672

Inventories of materials and supplies
124,416

 
121,833

Prepaid expenses and deferred costs
28,841

 
38,796

Total current assets
457,676

 
453,760

 
 
 
 
Property and equipment, net
3,575,172

 
3,164,724

 
 
 
 
Other receivables
11,831

 
11,831

Deferred costs and other assets
39,937

 
26,951

Deferred income taxes
518

 
—

Total assets
$
4,085,134

 
$
3,657,266

 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
Accounts payable
$
88,585

 
$
95,827

Accrued liabilities
16,319

 
17,653

Notes payable
—

 
8,071

Interest payable
8,278

 
7,945

Income tax payable
19,645

 
16,554

Deferred credits
12,653

 
10,822

Total current liabilities
145,480

 
156,872

 
 
 
 
Long-term debt
1,512,685

 
1,263,232

Deferred income taxes
354

 
485

Deferred credits
12,305

 
1,176

Other
41,269

 
28,130

Total long-term liabilities
1,566,613

 
1,293,023

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

 
—

Common stock, $1.00 par value, 180,000 shares authorized with 64,253 and 64,057 issued and outstanding at March 31, 2014 and September 30, 2013, respectively
64,253

 
64,057

Paid-in capital
192,570

 
183,390

Retained earnings
2,118,102

 
1,961,405

Accumulated other comprehensive loss
(1,884
)
 
(1,481
)
Total shareholders' equity
2,373,041

 
2,207,371

Total liabilities and shareholders' equity
$
4,085,134

 
$
3,657,266




8


ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
 
 
Six Months Ended March 31,
(In thousands)
2014
 
2013
Cash flows from operating activities:
 
 
 
Net income
$
156,697

 
$
158,350

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation
69,775

 
56,060

Amortization of debt issuance costs and bond premium
2,328

 
2,073

Amortization of deferred items
2,185

 
1,448

Provision for doubtful accounts
679

 
1,871

Provision for inventory obsolescence
860

 
360

Deferred income tax benefit
(649
)
 
(466
)
Share-based compensation expense
7,725

 
6,813

Gain on sale of assets
(34,079
)
 
—

Other, net
2,118

 
(13
)
Change in assets and liabilities:
 
 
 
Accounts receivable
(39,559
)
 
24,563

Income tax receivable
(1,543
)
 
(199
)
Inventory
(8,097
)
 
(14,106
)
Prepaid expenses
9,524

 
10,109

Deferred costs and other assets
(26,568
)
 
(8,084
)
Accounts payable
(8,617
)
 
(43,864
)
Accrued liabilities
(1,276
)
 
(5,282
)
Income tax payable
3,091

 
6,582

Deferred credits and other liabilities
33,910

 
8,247

Net cash provided by operating activities
168,504

 
204,462

 
 
 
 
Cash flows from investing activities:
 
 
 
Capital expenditures
(497,634
)
 
(372,957
)
Proceeds from sale of assets
56,517

 
61

Net cash used in investing activities
(441,117
)
 
(372,896
)
 
 
 
 
Cash flows from financing activities:
 
 
 
Proceeds from bank credit facilities
340,000

 
310,000

Principal payments on bank credit facilities
(90,000
)
 
(100,000
)
Principal payments on notes payable
(8,071
)
 
(5,148
)
Proceeds from exercise of stock options
1,651

 
3,418

Debt issuance costs paid
(102
)
 
—

Net cash provided by financing activities
243,478

 
208,270

Net increase (decrease) in cash and cash equivalents
$
(29,135
)
 
$
39,836

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

 
$
77,871

Cash and cash equivalents, at end of period
$
59,635

 
$
117,707

Non-cash activities:
 
 
 
Changes in accounts payable and accrued liabilities related to capital expenditures
$
1,375

 
$
34,046



9


Atwood Oceanics is a leading offshore drilling company engaged in the drilling and completion of exploration and development wells for the global oil and gas industry. The company currently owns 12 mobile offshore drilling units and is constructing three 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."

As part of our ongoing commitment to our shareholders, Atwood Oceanics uses a variety of Social Networks sites to disseminate company information. For a full list of the official Social Media pages for Atwood Oceanics, please visit the Social Media Disclaimer page of our IR site at: http://ir.atwd.com/GenPage.aspxIID=4010374&GKP=210376.


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


10