0000008411-15-000021.txt : 20150204 0000008411-15-000021.hdr.sgml : 20150204 20150203173413 ACCESSION NUMBER: 0000008411-15-000021 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20150203 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20150204 DATE AS OF CHANGE: 20150203 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: 15572484 BUSINESS ADDRESS: STREET 1: 15011 KATY FREEWAY, STREET 2: SUITE 800 CITY: HOUSTON STATE: TX ZIP: 77094 BUSINESS PHONE: 2817497800 MAIL ADDRESS: STREET 1: 15011 KATY FREEWAY, STREET 2: SUITE 800 CITY: HOUSTON STATE: TX ZIP: 77094 8-K 1 atw-201412318k.htm 1ST QUARTER FY 15 EARNINGS ATW-2014.12.31 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 Report (Date of earliest event reported): February 3, 2015

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

Texas
1-13167
74-1611874
(State or other jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)


15011 Katy Freeway, Suite 800, Houston, Texas
77094
(Address of principal executive offices)
(Zip Code)
 
 
 
 
 Registrant’s telephone number, including area code: (281) 749-7800
 
 
N/A
 
 
(Former Name, Former Address and Former Fiscal Year, 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:

¨ 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 February 3, 2015, concerning financial results for the first quarter ended December 31, 2014, furnished as Exhibit 99.1, is incorporated herein by reference.

Item 9.01     Financial Statements and Exhibits.

(d)    Exhibits

The exhibits listed below are furnished pursuant to Item 9.01 of this Form 8-K.
Exhibit Number
 
Exhibit Description
99.1
 
Press Release dated February 3, 2015.

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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)
Date: February 3, 2015


 
/s/ Mark L. Mey
 
Mark L. Mey
 
Executive Vice President and Chief Financial Officer


3

INDEX TO EXHIBIT

Exhibit Number
 
Exhibit Description
99.1
 
Press Release dated February 3, 2015.


4
 EX-99.1 2 exhibit991-atw201412318k.htm FINANCIAL STATEMENTS Exhibit 99.1 - ATW-2014.12.31 8-K


Exhibit 99.1
Houston, Texas
February 3, 2015

FOR IMMEDIATE RELEASE - EARNINGS

HOUSTON, February 3, 2015 -- Atwood Oceanics, Inc. (NYSE: ATW) ("Company"), announced today that it had earned net income of $46.2 million or $0.71 per diluted share, on revenues of $351.7 million for the quarter ended December 31, 2014 compared to net income of $112.2 million or $1.72 per diluted share on revenues of $323.4 million for the quarter ended September 30, 2014 and 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.

The Company recorded a non-cash impairment charge of approximately $60.8 million ($56.1 million, net of tax, or $0.86 per diluted share) related to the Atwood Hunter. In addition, during December 2014, the Company recorded a loss of approximately $8.0 million ($7.1 million, net of tax, or $0.11 per diluted share) for the sale of the Atwood Southern Cross and a loss of $1.8 million on the sale of other equipment.

 
For the Three Months Ended
 
(Unaudited)
(In thousands, except per share amounts)
December 31,
2014
 
September 30,
2014
 
December 31,
2013
Revenues
$
351,726

 
$
323,373

 
$
284,706

Income before Income Taxes
55,340

 
126,385

 
94,260

Provision for Income Taxes
(9,122
)
 
(14,185
)
 
(10,863
)
Net Income
$
46,218

 
$
112,200

 
$
83,397

 
 
 
 
 
 
Earnings per Common Share -
 
 
 
 
 
Basic
$
0.72

 
$
1.74

 
$
1.30

Diluted
$
0.71

 
$
1.72

 
$
1.28




5


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

 
Three Months Ended December 31,
(In thousands, except per share amounts)
2014
 
2013
REVENUES:
 
 
 
Contract drilling
$
336,761

 
$
273,557

Revenues related to reimbursable expenses
14,965

 
11,149

Total revenues
351,726

 
284,706

 
 
 
 
COSTS AND EXPENSES:
 
 
 
Contract drilling
136,465

 
123,162

Reimbursable expenses
11,907

 
8,414

Depreciation
44,575

 
32,544

General and administrative
17,409

 
19,822

Asset impairment
60,777

 
—

(Gain) loss on sale of equipment
9,806

 
(1,637
)
 
280,939

 
182,305

 
 
 
 
OPERATING INCOME
$
70,787

 
$
102,401

 
 
 
 
OTHER INCOME (EXPENSE):
 
 
 
Interest expense, net of capitalized interest
(15,504
)
 
(8,211
)
Interest income
57

 
70

 
(15,447
)
 
(8,141
)
 
 
 
 
INCOME BEFORE INCOME TAXES
55,340

 
94,260

PROVISION FOR INCOME TAXES
9,122

 
10,863

NET INCOME
$
46,218

 
$
83,397

 
 
 
 
EARNINGS PER COMMON SHARE:
 
 
 
Basic
$
0.72

 
$
1.30

Diluted
$
0.71

 
$
1.28

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
 
 
 
Basic
64,405

 
64,112

Diluted
65,015

 
65,026


6


ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED ANALYSIS OF REVENUES AND DRILLING COSTS

 
REVENUES
 
Three Months Ended
(In millions)
December 31,
2014
 
September 30,
2014
 
December 31,
2013
Ultra-Deepwater
$
167

 
$
137

 
$
87

Deepwater
98

 
92

 
108

Jackups
72

 
76

 
79

Reimbursable
15

 
18

 
11

 
$
352

 
$
323

 
$
285



 
DRILLING COSTS
 
Three Months Ended
(In millions)
December 31,
2014
 
September 30,
2014
 
December 31,
2013
Ultra-Deepwater
$
63

 
$
42

 
$
35

Deepwater
41

 
43

 
49

Jackups
31

 
30

 
37

Reimbursable
12

 
15

 
8

Other
1

 
3

 
3

 
$
148

 
$
133

 
$
132





7


ATWOOD OCEANICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)
December 31,
2014
 
September 30,
2014
 
(Unaudited)
 
 
ASSETS
 
 
 
Cash
$
121,803

 
$
80,080

Accounts receivable
214,719

 
242,684

Income tax receivable
6,977

 
6,260

Inventories of materials and supplies
126,242

 
132,368

Prepaid expenses, deferred costs and other current assets
31,103

 
36,415

Total current assets
500,844

 
497,807

 
 
 
 
Property and equipment, net
4,013,173

 
3,967,028

 
 
 
 
Other receivables
11,831

 
11,831

Deferred income taxes
278

 
589

Deferred costs and other assets
23,905

 
29,973

Total assets
$
4,550,031

 
$
4,507,228

 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
Accounts payable
$
81,887

 
$
94,315

Accrued liabilities
18,012

 
19,158

Dividends payable
16,090

 
16,090

Short-term debt
5,954

 
11,885

Interest payable
19,426

 
8,099

Income tax payable
12,901

 
14,234

Deferred credits and other liabilities
4,763

 
3,596

Total current liabilities
159,033

 
167,377

 
 
 
 
Long-term debt
1,741,834

 
1,742,122

Deferred income taxes
1,022

 
783

Deferred credits
4,036

 
4,100

Other
36,531

 
37,322

Total long-term liabilities
1,783,423

 
1,784,327

 
 
 
 
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 64,551 issued and outstanding at December 31, 2014 and 180,000 shares authorized and 64,362 shares issued and outstanding at September 30, 2014
64,551

 
64,362

Paid-in capital
206,083

 
201,464

Retained earnings
2,332,355

 
2,286,137

Accumulated other comprehensive income (loss)
4,586

 
3,561

Total shareholders' equity
2,607,575

 
2,555,524

Total liabilities and shareholders' equity
$
4,550,031

 
$
4,507,228


8


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

 
Three Months Ended December 31,
(In thousands)
2014
 
2013
Cash flows from operating activities:
 
 
 
Net income
$
46,218

 
$
83,397

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation
44,575

 
32,544

Amortization
2,504

 
1,172

Provision for doubtful accounts and inventory obsolescence
—

 
430

Deferred income tax provision (benefit)
(3,380
)
 
196

Share-based compensation expense
4,024

 
3,354

Asset impairment
60,777

 
—

(Gain) loss on sale of assets
9,806

 
(1,637
)
Changes in assets and liabilities:
 
 
 
Accounts receivable
27,965

 
26,868

Income tax receivable
(717
)
 
(859
)
Inventories of materials and supplies
(6,771
)
 
10,842

Prepaid expenses, deferred costs and other current assets
5,095

 
6,458

Deferred costs and other assets
62

 
(8,165
)
Accounts payable
(14,248
)
 
(13,556
)
Accrued liabilities
14,866

 
11,223

Income tax payable
(1,333
)
 
(3,767
)
Deferred credits and other liabilities
5,263

 
9,695

Net cash provided by operating activities
194,706

 
158,195

 
 
 
 
Cash flows from investing activities:
 
 
 
Capital expenditures
(149,042
)
 
(462,620
)
Proceeds from sale of assets
1,348

 
13,277

Net cash used in investing activities
(147,694
)
 
(449,343
)
 
 
 
 
Cash flows from financing activities:
 
 
 
Proceeds from issuance of long-term debt
—

 
340,000

Repayments on short-term debt, net
(5,931
)
 
(6,046
)
Proceeds from exercise of stock options
784

 
823

Debt issuance costs paid
(142
)
 
(72
)
Net cash (used) provided by financing activities
(5,289
)
 
334,705

Net increase in cash and cash equivalents
41,723

 
43,557

Cash and cash equivalents, at beginning of period
80,080

 
88,770

Cash and cash equivalents, at end of period
$
121,803

 
$
132,327

 
 
 
 
Non-cash activities:
 
 
 
Decrease in accrued liabilities relate to capital expenditures
$
(4,525
)
 
$
(11,092
)




9


Atwood Oceanics, Inc. 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 two 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.aspx?IID=4010374&GKP=210376.

Conference Call

The Company has scheduled a conference call and webcast related to its first quarter 2015 results on Wednesday, February 4, 2015, at 10:00 a.m. U.S. Central Standard Time. Interested parties are invited to listen to the call by dialing 1-877-876-9177, or internationally 1-785-484-1666, Conference ID - Atwood. Interested parties may also listen over the Internet through a link posted in the Investor Relations section of the Company's Web site.  

A replay of the conference call will be available on the Company's Web site following the end of the live call.

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


10