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) |
N/A | ||
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report) |
(d) | EXHIBITS |
99.1 | Press Release dated November 11, 2016. |
ATWOOD OCEANICS, INC. | |
(Registrant) | |
Date: November 14, 2016 | |
/s/ Mark W. Smith | |
Mark W. Smith | |
Senior Vice President and Chief Financial Officer |
EXHIBIT NO | DESCRIPTION | |
99.1 | Press Release dated November 11, 2016 |
• | Recorded a non-cash impairment charge of $38.6 million ($38.6 million, net of tax, or $0.60 per diluted share) in Asset Impairment related to our fleet wide drilling equipment, |
• | Recorded a non-cash charge of $3.9 million ($3.9 million, net of tax, or $0.06 per diluted share) in Drilling Costs to increase our reserve for excessive and/or obsolete materials and supplies, and |
• | Recognized a gain on the purchase of debt of $10.2 million ($6.6 million, net of tax, or $0.10 per diluted share) in Gains on Extinguishment of Debt related to consummation of our modified “Dutch Auction” on July 25, 2016 whereby we acquired $42.0 million aggregate principal amount of the Senior Notes. |
• | Recorded a non-cash impairment charge of $38.6 million ($38.6 million, net of tax, or $0.60 per diluted share) in Asset Impairment related to our fleet wide drilling equipment, |
• | Recorded a non-cash charge of $3.9 million ($3.9 million, net of tax, or $0.06 per diluted share) in Drilling Costs to increase our reserve for excessive and/or obsolete materials and supplies, |
• | Recognized a gain of the extinguishment of debt of $69.0 million ($54.7 million, net of tax, or $0.84 per diluted share) related to the purchase of $201.4 million of the Senior Notes, |
• | Recognized other income of $18.0 million ($18.0 million, net of tax, or $0.28 per diluted share) for expected insurance recoveries related to cyclone damage to the Atwood Osprey, and |
• | Recorded a non-cash impairment charge of $64.9 million ($64.9 million, net of tax, or $1.00 per diluted share) in Asset Impairment related to the Atwood Falcon, which was sold to a 3rd party buyer in April 2016. |
• | 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, |
• | 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 |
• | 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. |
For the Three Months Ended | |||||||||||
(Unaudited) | |||||||||||
(In thousands, except per share amounts) | September 30, 2016 | June 30, 2016 | September 30, 2015 | ||||||||
Revenues | $ | 188,677 | $ | 227,797 | $ | 363,176 | |||||
Income before Income Taxes | 5,918 | 120,116 | 166,115 | ||||||||
Provision for Income Taxes | 1,669 | 20,611 | 15,421 | ||||||||
Net Income | $ | 4,249 | $ | 99,505 | $ | 150,694 | |||||
Earnings per Common Share - | |||||||||||
Basic | $ | 0.07 | $ | 1.54 | $ | 2.33 | |||||
Diluted | $ | 0.07 | $ | 1.53 | $ | 2.32 |
For the Twelve Months Ended | |||||||||
(In thousands, except per share amounts) | September 30, 2016 | September 30, 2015 | |||||||
(Unaudited) | |||||||||
Revenues | $ | 1,020,644 | $ | 1,395,851 | |||||
Income before Income Taxes | 312,755 | 478,970 | |||||||
Provision for Income Taxes | (47,483 | ) | (46,397 | ) | |||||
Net Income | $ | 265,272 | $ | 432,573 | |||||
Earnings per Common Share - | |||||||||
Basic | $ | 4.09 | $ | 6.70 | |||||
Diluted | $ | 4.09 | $ | 6.65 |
Three Months Ended September 30, | Twelve Months Ended September 30, | ||||||||||||||
(In thousands, except per share amounts) | 2016 | 2015 | 2016 | 2015 | |||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||
REVENUES: | |||||||||||||||
Contract drilling | $ | 181,369 | $ | 349,139 | $ | 976,348 | $ | 1,342,052 | |||||||
Revenues related to reimbursable expenses | 7,308 | 14,037 | 44,296 | 53,799 | |||||||||||
Total revenues | 188,677 | 363,176 | 1,020,644 | 1,395,851 | |||||||||||
COSTS AND EXPENSES: | |||||||||||||||
Contract drilling | 77,441 | 118,574 | 378,535 | 520,421 | |||||||||||
Reimbursable expenses | 5,393 | 9,110 | 28,291 | 38,744 | |||||||||||
Depreciation | 40,706 | 42,310 | 165,669 | 171,947 | |||||||||||
General and administrative | 11,857 | 14,610 | 50,550 | 57,229 | |||||||||||
Asset impairment | 38,651 | — | 103,539 | 60,777 | |||||||||||
(Gain)/loss on sale of assets | — | (59 | ) | 77 | 15,303 | ||||||||||
Other, net | 859 | — | (299 | ) | — | ||||||||||
174,907 | 184,545 | 726,362 | 864,421 | ||||||||||||
OPERATING INCOME | 13,770 | 178,631 | 294,282 | 531,430 | |||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||
Interest expense, net of capitalized interest | (18,032 | ) | (12,523 | ) | (68,566 | ) | (52,551 | ) | |||||||
Interest income | 2 | 7 | 21 | 91 | |||||||||||
Gains on extinguishment of debt | 10,178 | — | 69,041 | — | |||||||||||
Other income | — | — | 17,977 | — | |||||||||||
(7,852 | ) | (12,516 | ) | 18,473 | (52,460 | ) | |||||||||
INCOME BEFORE INCOME TAXES | 5,918 | 166,115 | 312,755 | 478,970 | |||||||||||
PROVISION FOR INCOME TAXES | 1,669 | 15,421 | 47,483 | 46,397 | |||||||||||
NET INCOME | $ | 4,249 | $ | 150,694 | $ | 265,272 | $ | 432,573 | |||||||
EARNINGS PER COMMON SHARE (NOTE 2): | |||||||||||||||
Basic | $ | 0.07 | $ | 2.33 | $ | 4.09 | $ | 6.70 | |||||||
Diluted | $ | 0.07 | $ | 2.32 | $ | 4.09 | $ | 6.65 | |||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (NOTE 2): | |||||||||||||||
Basic | 64,827 | 64,654 | 64,789 | 64,581 | |||||||||||
Diluted | 64,955 | 64,932 | 64,839 | 65,030 |
REVENUES | |||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
(In millions) | September 30, 2016 | June 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||||
Ultra-Deepwater | $ | 154 | $ | 182 | $ | 198 | $ | 708 | $ | 721 | |||||||||
Deepwater | — | — | 78 | 131 | 336 | ||||||||||||||
Jackups | 27 | 36 | 73 | 138 | 285 | ||||||||||||||
Reimbursable | 7 | 10 | 14 | 44 | 54 | ||||||||||||||
188 | 228 | 363 | 1,021 | 1,396 |
DRILLING COSTS | |||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
(In millions) | September 30, 2016 | June 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||||
Ultra-Deepwater | $ | 58 | $ | 54 | $ | 60 | $ | 225 | $ | 264 | |||||||||
Deepwater | 2 | 10 | 24 | 73 | 127 | ||||||||||||||
Jackups | 17 | 16 | 34 | 79 | 126 | ||||||||||||||
Reimbursable | 5 | 5 | 9 | 28 | 39 | ||||||||||||||
Other | — | 1 | — | 2 | 3 | ||||||||||||||
$ | 82 | $ | 86 | $ | 127 | $ | 407 | $ | 559 |
(In thousands, except par value) | September 30, 2016 | September 30, 2015 | |||||
(Unaudited) | |||||||
ASSETS | |||||||
Cash | $ | 145,427 | $ | 113,983 | |||
Accounts receivable, net | 113,091 | 311,514 | |||||
Income tax receivable | 6,095 | 8,705 | |||||
Inventories of materials and supplies, net | 109,925 | 137,998 | |||||
Prepaid expenses, deferred costs and other current assets | 18,504 | 33,735 | |||||
Total current assets | 393,042 | 605,935 | |||||
Property and equipment, net | 4,127,696 | 4,172,132 | |||||
Other receivables | 11,831 | 11,831 | |||||
Deferred income taxes | 165 | 150 | |||||
Deferred costs and other assets | 7,058 | 11,285 | |||||
Total assets | $ | 4,539,792 | $ | 4,801,333 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Accounts payable | $ | 25,299 | $ | 70,161 | |||
Accrued liabilities | 7,868 | 23,572 | |||||
Dividends payable | — | 16,164 | |||||
Interest payable | 7,096 | 7,704 | |||||
Income tax payable | 8,294 | 13,906 | |||||
Deferred credits and other liabilities | 799 | 3,941 | |||||
Total current liabilities | 49,356 | 135,448 | |||||
Long-term debt | 1,227,919 | 1,678,268 | |||||
Deferred income taxes | 1,202 | 1,658 | |||||
Deferred credits | — | 800 | |||||
Other | 30,929 | 37,989 | |||||
Total long-term liabilities | 1,260,050 | 1,718,715 | |||||
Commitments and contingencies (Note 9) | |||||||
Preferred stock, no par value, 1,000 shares authorized, none outstanding | — | — | |||||
Common stock, $1.00 par value, 180,000 shares authorized with 64,799 issued and outstanding at September 30, 2016 and 180,000 shares authorized and 64,654 shares issued and outstanding at September 30, 2015 | 64,799 | 64,654 | |||||
Paid-in capital | 237,542 | 213,096 | |||||
Retained earnings | 2,929,839 | 2,670,148 | |||||
Accumulated other comprehensive loss | (1,794 | ) | (728 | ) | |||
Total shareholders’ equity | 3,230,386 | 2,947,170 | |||||
Total liabilities and shareholders’ equity | $ | 4,539,792 | $ | 4,801,333 |
Twelve Months Ended September 30, | |||||||
(In thousands) | 2016 | 2015 | |||||
(Unaudited) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 265,272 | $ | 432,573 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 165,669 | 171,947 | |||||
Amortization | 3,446 | 6,299 | |||||
Provision for doubtful accounts and inventory obsolescence | 9,501 | 4,286 | |||||
Deferred income tax benefit | 1,632 | (2,747 | ) | ||||
Share-based compensation expense | 11,862 | 12,828 | |||||
Asset impairment | 103,539 | 60,777 | |||||
(Gain) loss on sale of assets | (222 | ) | 15,303 | ||||
(Gain) on extinguishment of debt | (69,041 | ) | — | ||||
Change in assets and liabilities: | |||||||
Accounts receivable | 176,614 | (72,575 | ) | ||||
Income tax receivable | 2,610 | (2,445 | ) | ||||
Inventories of materials and supplies | 12,385 | (19,068 | ) | ||||
Prepaid expenses, deferred costs and other current assets | 7,498 | (3,655 | ) | ||||
Deferred costs and other assets | (608 | ) | 5,917 | ||||
Accounts payable | (36,227 | ) | (11,967 | ) | |||
Accrued liabilities | (16,298 | ) | 1,637 | ||||
Income tax payable | (5,612 | ) | (328 | ) | |||
Deferred credits and other liabilities | (7,012 | ) | 5,505 | ||||
Net cash provided by operating activities | 625,008 | 604,287 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (223,731 | ) | (448,019 | ) | |||
Net proceeds from sale of assets | 20,792 | (4,402 | ) | ||||
Net cash used in investing activities | (202,939 | ) | (452,421 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from borrowing of long-term debt | 45,000 | 225,000 | |||||
Principal repayments on long-term debt | (426,623 | ) | (280,000 | ) | |||
Repayments on short-term debt, net | — | (11,885 | ) | ||||
Dividends paid | (21,745 | ) | (48,562 | ) | |||
Proceeds from exercise of stock options | — | 1,064 | |||||
Debt issuance costs paid | (451 | ) | (3,580 | ) | |||
Windfall tax benefits from share-based payment arrangements | 13,194 | — | |||||
Net cash (used in) or provided by financing activities | (390,625 | ) | (117,963 | ) | |||
Net increase (decrease) in cash and cash equivalents | 31,444 | 33,903 | |||||
Cash at beginning of period | 113,983 | 80,080 | |||||
Cash at end of period | $ | 145,427 | $ | 113,983 | |||
Cash paid during the period for: | |||||||
Domestic and foreign income taxes | $ | 35,653 | $ | 50,428 | |||
Interest, net of amounts capitalized | $ | 67,958 | $ | 48,209 | |||
Non-cash activities: | |||||||
Decrease in accounts payables related to capital expenditures | $ | (8,028 | ) | $ | (9,532 | ) | |
Dividends payable | $ | — | $ | 16,164 |