-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, tJebd9PxOs9s86XvZVoo+UXeJvVU0lOc8rJoV5zK0d4BuimI+F+7uu9vBhJdcuS8 l3oqSJTRrYiyOt1wBjpfIQ== 0000008411-95-000011.txt : 19950515 0000008411-95-000011.hdr.sgml : 19950515 ACCESSION NUMBER: 0000008411-95-000011 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19941231 FILED AS OF DATE: 19950214 SROS: NASD 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: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-06352 FILM NUMBER: 95510724 BUSINESS ADDRESS: STREET 1: 15835 PARK TEN PL DR STREET 2: SUITE 200 CITY: HOUSTON STATE: TX ZIP: 77084 BUSINESS PHONE: 7134922929 10-Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 ________________ Form 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR QUARTERLY PERIOD ENDED DECEMBER 31, 1994 COMMISSION FILE NUMBER 0-6352 ATWOOD OCEANICS, INC. (Exact name of registrant as specified in its charter) TEXAS 74-1611874 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 15835 Park Ten Place Drive 77084 Houston, Texas (Zip Code) (Address of principal executive offices) Registrant's telephone number, including area code: 713-492-2929 _______________ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 15 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filings requirements for the past 90 days. Yes X No Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of December 31, 1994: 6,582,613 shares of Common Stock $1 par value PAGE 2 ATWOOD OCEANICS, INC. AND SUBSIDIARIES PART I. FINANCIAL INFORMATION The condensed financial statements herein have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted, although the Company believes that the disclosures are adequate to make the information not misleading. The financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the quarters ended December 31, 1994 and 1993. All adjustments were of a normal recurring nature. It is suggested these condensed financial statements be read in conjunction with the financial statements and the notes thereto included in the Company's September 30, 1994 Annual Report to Shareholders. PAGE 3 ATWOOD OCEANICS, INC. AND SUBSIDIARIES PART I - ITEM I - FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEET
(Unaudited) December 31, September 30, 1994 1994 (In thousands) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 18,656 $ 16,119 Accounts receivable 14,093 13,915 Current maturities of long-term notes receivable 400 400 Inventories of materials and supplies, at lower of average cost or market 4,219 4,194 Prepaid expenses and other 3,409 3,844 Total Current Assets 40,777 38,472 AVAILABLE FOR SALE SECURITIES 24,921 24,928 LONG-TERM NOTE RECEIVABLE, net of current maturities 5,884 5,985 PROPERTY AND EQUIPMENT, at cost: Drilling vessels, equipment and drill pipe 188,625 187,525 Other 4,793 4,479 193,418 192,004 Less - accumulated depreciation 112,624 109,159 Net Property and Equipment 80,794 82,845 DEFERRED COSTS AND OTHER ASSETS 1,322 1,230 $ 153,698 $ 153,460
PAGE 4 ATWOOD OCEANICS, INC. AND SUBSIDIARIES PART I. ITEM I - FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS (Unaudited) December 31, September 30, 1994 1994 (In thousands)
LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Current maturities of notes payable by partnership $ 3,000 $ 3,000 Accounts payable 3,597 3,728 Accrued liabilities 6,733 6,573 Total Current Liabilities 13,330 13,301 LONG-TERM NOTES PAYABLE BY PARTNERSHIP, net of current maturities 50,210 50,294 DEFERRED CREDITS 2,282 2,289 MINORITY INTEREST IN PARTNERSHIPS 174 1,617 SHAREHOLDERS' EQUITY: Preferred stock, no par value; 1,000,000 shares authorized, none outstanding --- --- Common stock, $1 par value; 10,000,000 shares authorized with 6,582,000 shares issued and outstanding 6,582 6,582 Paid-in capital 54,273 54,273 Retained earnings 26,847 25,104 Total Shareholders' Equity 87,702 85,959 $ 153,698 $ 153,460
PAGE 5 ATWOOD OCEANICS, INC. AND SUBSIDIARIES PART I. ITEM I - FINANCIAL STATEMENTS CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended December 31, (In thousands, except per share amounts) 1994 1993 REVENUES: Drilling revenues $ 17,856 $ 15,373 management fee income 450 485 Dividends and interest 679 615 Gain on sale of Indian joint venture --- 201 18,985 16,674 COSTS AND EXPENSES: Drilling costs 12,530 10,849 Depreciation 3,542 3,357 General and administrative 1,057 985 Interest 831 680 17,960 15,871 INCOME BEFORE MINORITY INTEREST AND INCOME TAXES 1,025 803 MINORITY INTEREST IN LOSS OF PARTNERSHIPS 908 1,080 INCOME BEFORE INCOME TAXES 1,933 1,883 PROVISION FOR INCOME TAXES 190 283 NET INCOME $ 1,743 $ 1,600 WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 6,582 6,582 INCOME PER COMMON SHARE $ .26 $ .24
PAGE 6 ATWOOD OCEANICS, INC. AND SUBSIDIARIES PART I. ITEM I - FINANCIAL STATEMENTS CONSOLIDATED STATEMENTS OF CASH FLOW
Three Months Ended December 31, 1994 1993 (In thousands) CASH FLOW FROM OPERATING ACTIVITIES: Net Income $ 1,743 $ 1,600 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation 3,542 3,357 Amortization of deferred items 103 62 Minority interest in net loss of partnerships (908) (1,080) Changes in assets and liabilities: Increase in accounts receivable (178) (416) Increase in accounts payable and accrued liabilities 29 1,868 Other 315 (564) Total adjustments 2,903 3,227 Net cash provided by operating activities 4,646 4,827 CASH FLOW FROM INVESTING ACTIVITIES: Capital expenditures (1,205) (1,989) Proceeds from sale of equity in Indian joint venture --- 1,300 Investment in joint venture (155) --- Payments received on note receivable 101 101 Net cash used by investing activities (1,259) (588) CASH FLOW FROM FINANCING ACTIVITIES: Principal payment on long-term notes payable (750) (750) Net payments to limited partner (100) --- Net cash used by financing activities (850) (750) NET INCREASE IN CASH AND CASH EQUIVALENTS 2,537 3,489 CASH AND CASH EQUIVALENTS, at beginning of period 16,119 10,087 CASH AND CASH EQUIVALENTS, at end of period $ 18,656 $ 13,576
PAGE 7 ATWOOD OCEANICS, INC. AND SUBSIDIARIES PART I. ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Excluding the SOUTHERN CROSS, which has not been placed in service, thus far in fiscal 1995, the Company has maintained 100 percent utilizations of its equipment. In fact, since October 1993, the Company has incurred only eleven idle equipment days, a 99.7 percent equipment utilization rate. However, since the EAGLE, FALCON, RICHMOND and HUNTER have current contracts which could expire in the second, third and fourth quarters of fiscal 1995, respectively, there is no guarantee that the Company can maintain its current level of equipment utilization for the remainder of fiscal 1995. The key to the Company's return to profitability in 1994 and its level of profitability thus far in fiscal 1995 has been high equipment utilization. Total revenues increased $2.3 million (14 percent) and $1.4 million (8 percent) in the first quarter of fiscal year 1995 compared to the first and fourth quarters of fiscal year 1994. The revenue increase in the first quarter of fiscal 1995 from the first quarter of fiscal year 1994 is primarily due to a $2.5 million (16 percent) increase in drilling revenues. A comparative analysis of drilling revenues is as follows: QUARTERS ENDED
December 31, September 30, December 31, 1994 1994 1993 (In thousands) SEAHAWK $ 2,674 $ 2,690 $ 2,763 HUNTER 2,578 2,665 2,407 EAGLE 3,871 3,763 1,774 FALCON 2,771 2,551 3,546 VICKSBURG 1,164 1,167 1,027 RIG-19 1,901 1,649 1,683 RICHMOND 1,500 1,283 1,462 GOODWYN 'A' 1,159 --- --- OTHER 238 295 711 $17,856 $16,063 $15,373
Since its commencement of operation in February 1993, the SEAHAWK has been a significant contributor to the Company's return to profitability. The HUNTER has experienced 100 percent utilization since April 1993. During December 1993, the EAGLE was mobilized from Malaysia to the "Zone of Cooperation" (an area jointly governed by Indonesia and Australia) and since being relocated has experienced 100 percent utilization. The downtime incurred in relocating the EAGLE accounts for drilling revenues for the first quarter of fiscal year 1995 being significantly higher than the first quarter of fiscal year 1994. The reduction in drilling revenues for the FALCON in the first quarter of fiscal year 1995 compared to the first quarter of fiscal 1994 is due to the rig operating in Korea where dayrate levels are lower compared PAGE 8 to Australia due to lower operating costs. In September 1994, RIG-19 was relocated to a new platform and received an increase in dayrate revenue which accounts for its increase in drilling revenues. The RICHMOND has worked continuously since March 1993. In October 1994, the Australian operator-owned GOODWYN 'A' platform rig commenced drilling operations. Since July 1989, the Company, on a management fee basis, directed the design, construction and offshore commissioning of the GOODWYN 'A' drilling facilities. The Company now has responsibility for the operations and maintenance of these facilities and is compensated on a dayrate basis. The Company's current contract status for its drilling operations is as follows: NAME OF RIG LOCATION CONTRACT STATUS SEAHAWK Malaysia Term contract (estimated completion 1997). HUNTER Malaysia Drilling the 28th of 30 firm wells (with eight option wells). EAGLE Australia/Indonesia Drilling the third of possible seven "Zone of option wells (if no additional option Cooperation" wells are drilled, contract could be complete before the end of March 1995). FALCON Korea Preparing to be relocated to China to commence a short drilling program which could be completed by the end of June 1995. VICKSBURG Australia Under contract until February 1996 (with two one year options). RIG-19 Australia Term contract (estimated completion 1997). RICHMOND United States Short term contract which could be completed by the end of June 1995. GOODWYN 'A' Australia Term contract (estimated completion 1997). For the three months ended December 31, 1994 compared to the three months ended December 31, 1993, drilling costs increased $1.6 million or 15 percent. An analysis of drilling costs by rigs is as follows: QUARTERS ENDED December 31, September 30, December 31, 1994 1994 1993 (In thousands) SEAHAWK $ 1,544 $ 1,584 $ 1,538 HUNTER 1,930 1,754 1,691 EAGLE 3,008 3,029 1,539 FALCON 1,747 1,293 2,819 VICKSBURG 721 664 201 RIG-19 1,183 806 1,151 RICHMOND 941 964 882 GOODWYN 'A' 896 --- --- OTHER 560 1,132 1,028 $ 12,530 $ 11,226 $ 10,849 PAGE 9 The EAGLE's relocation from Malaysia to the "Zone of Cooperation" where operating costs are higher due to increased labor costs accounts for the significant increase in drilling costs in the fourth quarter of fiscal year 1994 and the first quarter of fiscal year 1995 compared to the first quarter of fiscal year 1994. On the other hand, the relocation of the FALCON out of Australia accounts for its significant reduction in drilling costs. During the first quarter of fiscal 1994, the VICKSBURG was credited with approximately $500,000 in personnel tax refunds which accounts for its reduced drilling costs during that period. Drilling costs for RIG-19 was lower during the quarter ended September 30, 1994 due to the rig being relocated to a new platform. As previously stated, drilling operations commenced on the GOODWYN 'A' platform rig in October 1994 whereby the Company has labor responsibility and is being compensated on a dayrate revenue basis. LIQUIDITY AND CAPITAL RESOURCES Fabrication work has commenced on RIG-200 (the state-of-the-art modular platform rig jointly owned by the Company and Helmerich & Payne, Inc.). At December 31, 1994, the Company had only invested approximately $500,000 in the RIG-200 project; however, based upon the current construction schedule, the Company will invest an additional $12 million in this project during 1995. The SOUTHERN CROSS remains idle in Australia as the Company pursues future contract opportunities. Before the unit can be placed into service, an additional capital investment, which could be as high as $30 million, will be required. In addition to pursing a contract opportunity for the SOUTHERN CROSS, the Company is also pursuing other expansion opportunities. The Company currently plans to fund the RIG-200 investment from internally generated funds; however, should the Company receive a contract for the SOUTHERN CROSS or receive a commitment on another expansion opportunity, funding of these additional investment opportunities will probably require the use of a short-term borrowing facility. During the quarter, the Company's working capital increased approximately $2.3 million. The Company continues to experience no difficulties in collecting its accounts receivables. If the Company can continue to maintain its high level of equipment utilization, cash flow from operations should continue to remain at approximately $4 million per quarter for the remainder of fiscal 1995. However, if equipment utilization declines, cash flow will likewise decline. The Company will continue its emphasis on maintaining a high level of equipment utilization. ATWOOD OCEANICS, INC. AND SUBSIDIARIES PART I. ITEM 2 TO OUR SHAREHOLDERS AND EMPLOYEES: The results for the first quarter of fiscal 1995 reflect the Company's best quarterly performance since the last quarter of fiscal year 1983. Excluding the SOUTHERN CROSS, which has not been placed in service, the Company has maintained 100 percent utilization of its equipment since December 1993. Earnings, including investment income, before depreciation, interest and taxes, but after adjustment for minority interest, were $4.1 million for PAGE 10 the first quarter of fiscal year 1995 compared to $3.8 million for the first quarter of fiscal year 1994. Compared to the first quarter of fiscal 1994, operating cash flow for the first quarter of fiscal 1995 increased from $3.9 million to $4.4 million. The key to the Company maintaining its current level of profitability remains high equipment utilization. The FALCON will complete its current contract in Korea in February 1995 and then be relocated to China to commence a short-term drilling program which should keep the rig committed into the third quarter of fiscal 1995. If option wells are not drilled, the EAGLE could complete its current drilling program before the end of March 1995. The RICHMOND and HUNTER could complete their current contract commitments in the third and fourth quarters of fiscal 1995, respectively. The VICKSBURG has a contract commitment into 1996, and RIG-19 and the SEAHAWK are committed into 1997. The Company continues to aggressively pursue ongoing employment opportunities for the three semisubmersibles and the RICHMOND. Maintaining high equipment utilization will continue to be a challenge; however, through fiscal 1994 and thus far through fiscal 1995, the Company has successfully faced this challenge with a 99.7 percent equipment utilization rate. We are pleased to announce that in late October 1994, drilling operations commenced on the Australian operator-owned GOODWYN 'A' platform rig. Since July 1989, the Company, on a management fee basis, has directed the design, equipment procurement, fabrication, transport and offshore commissioning of the GOODWYN 'A' drilling facilities. The operation and maintenance phase of this project will provide additional enhancements to financial performance. Fabrication work has commenced on RIG-200 (the state- of-the-art modular platform rig jointly owned by the Company and Helmerich & Payne, Inc.), with operation in Australia currently scheduled to commence in late 1996. We are continuing our efforts in pursuing additional new opportunities which could further enhance our future operating results. The offshore drilling and service industry continues to change and remains very competitive. We are committed to achieving higher standards of excellence in safety and operational performance and to better understand our clients' present and future service needs. Our goal is to provide superior services and value to our clients. As we strive for continuation of profitability and growth, we appreciate the support and commitment of our employees and shareholders. s/ John R. Irwin JOHN R. IRWIN PRESIDENT PAGE 11 ATWOOD OCEANICS, INC. AND SUBSIDIARIES PART II. OTHER INFORMATION During the quarter ended December 31, 1994, the Company has not filed any Form 8-K's. 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 thereunto duly authorized. ATWOOD OCEANICS, INC. (Registrant) Date: 2/14/94 s/ James M. Holland JAMES M. HOLLAND Senior Vice President and Chief Accounting Officer EX-27 2 ART. 5 FDS FOR FORM 10-Q DATED DECEMBER 31, 1994 WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
5 0000008411 ATWOOD OCEANICS, INC. 1,000 QTR-1 QTR-1 SEP-30-1995 SEP-30-1994 OCT-01-1994 OCT-01-1993 DEC-31-1994 DEC-31-1993 18,656 13,576 24,921 24,949 20,377 17,872 0 0 4,219 3,971 40,777 31,226 193,418 188,476 112,624 99,668 153,698 152,299 13,330 13,768 50,210 54,845 6,582 6,582 0 0 0 0 54,273 54,273 153,698 152,299 18,306 15,858 18,985 16,674 13,587 11,834 13,587 11,834 3,542 3,357 0 0 831 680 1,933 1,883 190 283 1,743 1,600 0 0 0 0 0 0 1,743 1,600 .26 .24 .26 .24
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