0000008411-15-000102.txt : 20151110 0000008411-15-000102.hdr.sgml : 20151110 20151109165945 ACCESSION NUMBER: 0000008411-15-000102 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20151109 ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20151109 DATE AS OF CHANGE: 20151109 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: 151216470 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-20159308xk.htm 8-K ER 9_30_15 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): November 9, 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 November 9, 2015, concerning financial results for the fourth quarter and full year ended September 30, 2015, 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 November 9, 2015.

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)
Date: November 9, 2015


 
/s/ Mark W. Smith
 
Mark W. Smith
 
Senior Vice President and Chief Financial Officer


3

INDEX TO EXHIBIT

Exhibit Number
 
Exhibit Description
99.1
 
Press Release dated November 9, 2015.


4
 EX-99.1 2 exhibit991-atwx20159308xk.htm EXHIBIT 99.1 Exhibit


Exhibit 99.1

FOR IMMEDIATE RELEASE - EARNINGS

HOUSTON, November 9, 2015 -- Atwood Oceanics, Inc. (NYSE: ATW) ("Company"), announced today that it had earned net income of $150.7 million or $2.32 per diluted share, on revenues of $363.2 million for the quarter ended September 30, 2015 compared to net income of $113.0 million or $1.73 per diluted share on revenues of $330.6 million for the quarter ended June 30, 2015 and 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.

For the twelve months ended September 30, 2015, the Company earned net income of $432.6 million or $6.65 per diluted share, on revenues of $1.40 billion compared to net income of $340.8 million or $5.24 per diluted share, on revenues of $1.17 billion for the twelve months ended September 30, 2014. During the twelve months ended September 30, 2015, 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, the Company recorded a loss of approximately $5.5 million ($5.5 million, net of tax, or $0.08 per diluted share) for the sale of the Atwood Hunter and 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.


 
For the Three Months Ended
 
(Unaudited)
(In thousands, except per share amounts)
September 30,
2015
 
June 30,
2015
 
September 30,
2014
Revenues
$
363,176

 
$
330,562

 
$
323,373

 
 
 
 
 
 
Income before Income Taxes
$
166,115

 
$
122,539

 
$
126,385

Provision for Income Taxes
(15,421
)
 
(9,547
)
 
(14,185
)
Net Income
$
150,694

 
$
112,992

 
$
112,200

 
 
 
 
 
 
Earnings per Common Share -
 
 
 
 
 
Basic
$
2.33

 
$
1.75

 
$
1.74

Diluted
$
2.32

 
$
1.73

 
$
1.72



 
For the Twelve Months Ended
 
(Unaudited)
(In thousands, except per share amounts)
September 30,
2015
 
September 30,
2014
Revenues
$
1,395,851

 
$
1,173,953

 
 
 
 
Income before Income Taxes
$
478,970

 
$
397,293

Provision for Income Taxes
(46,397
)
 
(56,471
)
Net Income
$
432,573

 
$
340,822

 
 
 
 
Earnings per Common Share -
 
 
 
Basic
$
6.70

 
$
5.31

Diluted
$
6.65

 
$
5.24



5


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

 
Three Months Ended September 30,
 
Twelve Months Ended September 30,
(In thousands, except per share amounts)
2015
 
2014
 
2015
 
2014
REVENUES:
 
 
 
 
 
 
 
Contract drilling
$
349,139

 
$
304,853

 
$
1,342,052

 
$
1,103,397

Revenues related to reimbursable expenses
14,037

 
18,520

 
53,799

 
70,556

Total revenues
363,176

 
323,373

 
1,395,851

 
1,173,953

 
 
 
 
 
 
 
 
COSTS AND EXPENSES:
 
 
 
 
 
 
 
Contract drilling
118,574

 
117,413

 
520,421

 
506,128

Reimbursable expenses
9,110

 
15,130

 
38,744

 
56,225

Depreciation
42,310

 
39,982

 
171,947

 
147,358

General and administrative
14,610

 
13,773

 
57,229

 
61,461

Asset impairment
—

 
—

 
60,777

 
—

(Gain) loss on sale of assets
(59
)
 
(67
)
 
15,303

 
(34,139
)
Other, net
—

 
(49
)
 
—

 
(1,864
)
 
184,545


186,182

 
864,421

 
735,169

 
 
 
 
 
 
 
 
OPERATING INCOME
$
178,631


$
137,191

 
$
531,430

 
$
438,784

 
 
 
 
 
 
 
 
OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
Interest expense, net of capitalized interest
(12,523
)
 
(10,871
)
 
(52,551
)
 
(41,803
)
Interest income
7

 
65

 
91

 
312

 
(12,516
)

(10,806
)
 
(52,460
)
 
(41,491
)
 
 
 
 
 
 
 
 
INCOME BEFORE INCOME TAXES
166,115


126,385

 
478,970

 
397,293

PROVISION FOR INCOME TAXES
15,421

 
14,185

 
46,397

 
56,471

NET INCOME
$
150,694


$
112,200

 
$
432,573

 
$
340,822

 
 
 
 
 
 
 
 
EARNINGS PER COMMON SHARE:
 
 
 
 
 
 
 
Basic
$
2.33

 
$
1.74

 
$
6.70

 
$
5.31

Diluted
$
2.32

 
$
1.72

 
$
6.65

 
$
5.24

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
 
 
 
 
 
 
 
Basic
64,654

 
64,352

 
64,581

 
64,240

Diluted
64,932

 
65,229

 
65,030

 
65,074


6


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

 
REVENUES
 
Three Months Ended
 
Twelve Months Ended
(In millions)
September 30,
2015
 
June 30,
2015
 
September 30,
2014
 
September 30,
2015
 
September 30,
2014
Ultra-Deepwater
$
197

 
$
174

 
$
137

 
$
721

 
$
462

Deepwater
79

 
77

 
92

 
336

 
333

Jackups
73

 
67

 
76

 
285

 
308

Reimbursable
14

 
13

 
18

 
54

 
71

 
$
363

 
$
331

 
$
323

 
$
1,396

 
$
1,174



 
DRILLING COSTS
 
Three Months Ended
 
Twelve Months Ended
(In millions)
September 30,
2015
 
June 30,
2015
 
September 30,
2014
 
September 30,
2015
 
September 30,
2014
Ultra-Deepwater
$
58

 
$
75

 
$
42

 
$
264

 
$
167

Deepwater
25

 
29

 
43

 
127

 
201

Jackups
35

 
29

 
30

 
126

 
132

Reimbursable
9

 
9

 
15

 
39

 
56

Other
—

 
1

 
3

 
3

 
6

 
$
127

 
$
143

 
$
133

 
$
559

 
$
562




7


ATWOOD OCEANICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)
September 30,
2015
 
September 30,
2014
 
(Unaudited)
 
 
ASSETS
 
 
 
Cash
$
113,983

 
$
80,080

Accounts receivable
311,514

 
242,684

Income tax receivable
8,705

 
6,260

Inventories of materials and supplies
137,998

 
132,368

Prepaid expenses, deferred costs and other current assets
35,475

 
36,415

Total current assets
607,675

 
497,807

 
 
 
 
Property and equipment, net
4,172,132

 
3,967,028

 
 
 
 
Other receivables
11,831

 
11,831

Deferred income taxes
150

 
589

Deferred costs and other assets
17,223

 
29,973

Total assets
$
4,809,011

 
$
4,507,228

 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
Accounts payable
$
70,161

 
$
94,315

Accrued liabilities
23,572

 
19,158

Dividends payable
16,164

 
16,090

Short-term debt
—

 
11,885

Interest payable
7,704

 
8,099

Income tax payable
13,906

 
14,234

Deferred credits and other liabilities
3,941

 
3,596

Total current liabilities
135,448

 
167,377

 
 
 
 
Long-term debt
1,685,946

 
1,742,122

Deferred income taxes
1,658

 
783

Deferred credits
800

 
4,100

Other
37,989

 
37,322

Total long-term liabilities
1,726,393

 
1,784,327

 
 
 
 
Commitments and contingencies
 
 
 
 
 
 
 
Preferred stock
—

 
—

Common stock
64,654

 
64,362

Paid-in capital
213,096

 
201,464

Retained earnings
2,670,148

 
2,286,137

Accumulated other comprehensive income
(728
)
 
3,561

Total shareholders' equity
2,947,170

 
2,555,524

Total liabilities and shareholders' equity
$
4,809,011

 
$
4,507,228





8


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

 
Twelve Months Ended September 30,
(In thousands)
2015
 
2014
Cash flows from operating activities:
 
 
 
Net income
$
432,573

 
$
340,822

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation
171,947

 
147,358

Amortization
6,299

 
8,634

Provision for doubtful accounts and inventory obsolescence
4,286

 
2,826

Deferred income tax benefit
(2,747
)
 
(1,270
)
Share-based compensation expense
12,828

 
14,691

Asset impairment
60,777

 
—

(Gain) loss on sale of assets
15,303

 
(34,139
)
Changes in assets and liabilities:
 
 
 
Accounts receivable
(72,575
)
 
(43,965
)
Income tax receivable
(2,445
)
 
(1,588
)
Inventories of materials and supplies
(19,068
)
 
(17,220
)
Prepaid expenses, deferred costs and other current assets
(3,655
)
 
15,463

Deferred costs and other assets
5,917

 
(11,682
)
Accounts payable
(11,967
)
 
1,932

Accrued liabilities
1,637

 
1,647

Income tax payable
(328
)
 
(2,320
)
Deferred credits and other liabilities
5,505

 
21,431

Net cash provided by operating activities
604,287

 
442,620

 
 
 
 
Cash flows from investing activities:
 
 
 
Capital expenditures
(448,019
)
 
(975,731
)
Net proceeds from sale of assets
(4,402
)
 
61,516

Net cash used in investing activities
(452,421
)
 
(914,215
)
 
 
 
 
Cash flows from financing activities:
 
 
 
Borrowings from credit facilities
225,000

 
700,000

Repayments on credit facilities
(280,000
)
 
(220,000
)
Repayments on short-term debt, net
(11,885
)
 
(13,979
)
Dividends paid
(48,562
)
 
—

Proceeds from exercise of stock options
1,064

 
3,688

Debt issuance costs paid
(3,580
)
 
(6,804
)
Net cash (used) provided by financing activities
(117,963
)
 
462,905

Net increase (decrease) in cash and cash equivalents
33,903

 
(8,690
)
Cash and cash equivalents, at beginning of period
80,080

 
88,770

Cash and cash equivalents, at end of period
$
113,983

 
$
80,080



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 11 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 fourth quarter 2015 results on Tuesday, November 10, 2015, at 9:00 a.m. CDT. Interested parties are invited to listen to the call by dialing 1-800-862-9098, or internationally 1-785-424-1051, Conference ID#: ATWOOD/Password 46118. Interested parties may also listen over the Internet through a link posted in the Investor Relations section of the Company's Web site at http://services.choruscall.com/links/atw151110

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

Contact: Mark W. Smith
Senior Vice President & CFO
(281) 749-7840


10