England and Wales | 98-1023315 |
(State or other jurisdiction of | (I.R.S. Employer |
incorporation or organization) | Identification No.) |
2800 Post Oak Boulevard, Suite 5450, Houston, Texas | 77056-6189 |
(Address of principal executive offices) | (Zip Code) |
Page | ||
• | prices of oil and natural gas and industry expectations about future prices; |
• | changes in worldwide rig supply and demand, competition or technology, including as a result of delivery of newbuild drilling rigs and reactivation of rigs; |
• | variable levels of drilling activity and expenditures, whether as a result of actions by OPEC, global capital markets and liquidity, prices of oil and natural gas or otherwise, which may cause us to idle or stack additional rigs; |
• | drilling permit and operations delays, moratoria or suspensions, new and future regulatory, legislative or permitting requirements (including requirements related to certification and testing of blowout preventers and other equipment or otherwise impacting operations), future lease sales, changes in laws, rules and regulations that have or may impose increased financial responsibility, additional oil spill contingency plan requirements and other governmental actions that may result in claims of force majeure or otherwise adversely affect our existing drilling contracts; |
• | governmental regulatory, legislative and permitting requirements affecting drilling operations or compliance obligations in the areas in which our rigs operate; |
• | tax matters, including our effective tax rates, tax positions, results of audits, changes in tax laws, treaties and regulations, tax assessments and liabilities for taxes; |
• | downtime, lost revenue and other risks associated with drilling operations, operating hazards, or rig relocations and transportation, including rig or equipment failure, collisions, damage and other unplanned repairs, the limited availability of transport vessels, hazards, self-imposed drilling limitations and other delays due to weather conditions or otherwise, and the limited availability or high cost of insurance coverage for certain offshore perils or associated removal of wreckage or debris and other losses; |
• | access to spare parts, equipment and personnel to maintain, upgrade and service our fleet; |
• | possible cancellation or suspension of drilling contracts as a result of economic conditions in the industry, force majeure, mechanical difficulties, delays, performance or other reasons; |
• | potential cost overruns and other risks inherent to shipyard rig construction, repair or enhancement, unexpected delays in rig and equipment delivery and engineering or design issues following shipyard delivery, or delays in the dates our rigs will enter a shipyard, be transported and delivered, enter service or return to service; |
• | changes or delays in actual contract commencement dates; contract terminations, contract extensions, contract option exercises, contract revenues, contract awards; the termination of contracts or renegotiation of contract terms by customers, or payment or operational delays by our customers; |
• | potential delays for our recently delivered drillship, such as customer acceptance or readiness to drill; |
• | operating hazards, including environmental or other liabilities, risks, expenses or losses, whether related to well-control issues, or storm or hurricane damage, losses or liabilities (including wreckage or debris removal), collisions, or otherwise; |
• | our ability to attract and retain skilled personnel on commercially reasonable terms, whether due to competition from other contract drillers, labor regulations or otherwise; our ability to seek and receive visas for our personnel to work in our areas of operation in a timely manner; |
• | governmental action and political and economic uncertainties, including uncertainty or instability resulting from civil unrest, political demonstrations, strikes, or outbreak or escalation of armed hostilities or other crises in oil or natural gas producing areas in which we operate, which may result in extended business interruptions, suspended operations, or claims by our customers of a force majeure situation and payment disputes; |
• | terrorism, piracy, cyber-breaches, outbreaks of any disease or epidemic and other related travel restrictions, political instability, hostilities, acts of war, nationalization, expropriation, confiscation or deprivation of our assets or military action impacting our operations, assets or financial performance in any of our areas of operations; |
• | the outcome of legal proceedings, or other claims or contract disputes, including any inability to collect receivables or resolve significant contractual or day rate disputes, any purported renegotiation, nullification, cancellation or breach of contracts with customers or other parties, and any failure to negotiate or complete definitive contracts following announcements of receipt of letters of intent; |
• | potential for additional long-lived asset impairments; |
• | impacts of any global financial or economic downturn; |
• | effects of accounting changes and adoption of accounting policies; |
• | potential return to shareholders in the form of dividends and share repurchases; |
• | costs and uncertainties associated with our redomestication, or changes in laws that could reduce or eliminate the anticipated benefits of the transaction; |
• | potential unplanned expenditures and funding requirements, including investments in pension plans and other benefit plans; and |
• | other important factors described from time to time in the reports filed by us with the Securities and Exchange Commission and the New York Stock Exchange. |
ROWAN COMPANIES PLC AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) | |||||||
March 31, 2015 | December 31, 2014 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 56,792 | $ | 339,154 | |||
Receivables - trade and other | 503,151 | 545,204 | |||||
Prepaid expenses and other current assets | 24,903 | 29,253 | |||||
Deferred tax assets - net | 27,144 | 27,485 | |||||
Total current assets | 611,990 | 941,096 | |||||
PROPERTY, PLANT AND EQUIPMENT: | |||||||
Drilling equipment | 8,440,018 | 7,639,171 | |||||
Construction in progress | 737,298 | 1,023,646 | |||||
Other property and equipment | 138,623 | 137,365 | |||||
Property, plant and equipment - gross | 9,315,939 | 8,800,182 | |||||
Less accumulated depreciation and amortization | 1,451,913 | 1,367,970 | |||||
Property, plant and equipment - net | 7,864,026 | 7,432,212 | |||||
Other assets | 35,948 | 37,884 | |||||
TOTAL ASSETS | $ | 8,511,964 | $ | 8,411,192 |
ROWAN COMPANIES PLC AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (continued) (In thousands, except shares) (Unaudited) | |||||||
March 31, 2015 | December 31, 2014 | ||||||
LIABILITIES AND EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable - trade | $ | 118,073 | $ | 102,773 | |||
Deferred revenues | 37,352 | 36,189 | |||||
Accrued pension and other postemployment benefits | 26,219 | 26,219 | |||||
Accrued compensation and related employee costs | 53,798 | 88,186 | |||||
Accrued income taxes | 25,565 | 13,265 | |||||
Accrued interest | 35,363 | 47,414 | |||||
Other current liabilities | 21,863 | 19,175 | |||||
Total current liabilities | 318,233 | 333,221 | |||||
Long-term debt | 2,807,114 | 2,807,324 | |||||
Other liabilities | 373,373 | 368,266 | |||||
Deferred income taxes - net | 206,898 | 210,982 | |||||
Commitments and contingent liabilities (Note 4) | |||||||
SHAREHOLDERS' EQUITY: | |||||||
Class A Ordinary Shares, $0.125 par value, 125,928,807 and 124,828,807 shares issued at March 31, 2015, and December 31, 2014, respectively | 15,741 | 15,604 | |||||
Additional paid-in capital | 1,440,690 | 1,436,910 | |||||
Retained earnings | 3,578,100 | 3,466,993 | |||||
Cost of 1,165,394 and 264,903 treasury shares at March 31, 2015, and December 31, 2014, respectively | (11,453 | ) | (7,990 | ) | |||
Accumulated other comprehensive loss | (216,732 | ) | (220,118 | ) | |||
Total shareholders' equity | 4,806,346 | 4,691,399 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 8,511,964 | $ | 8,411,192 |
Three months ended March 31, | |||||||
2015 | 2014 | ||||||
REVENUES | $ | 547,039 | $ | 377,602 | |||
COSTS AND EXPENSES: | |||||||
Direct operating costs (excluding items below) | 255,734 | 220,369 | |||||
Depreciation and amortization | 89,690 | 70,873 | |||||
Selling, general and administrative | 27,586 | 29,875 | |||||
(Gain) loss on disposals of property and equipment | (513 | ) | 803 | ||||
Litigation settlement | — | (20,875 | ) | ||||
Total costs and expenses | 372,497 | 301,045 | |||||
INCOME FROM OPERATIONS | 174,542 | 76,557 | |||||
OTHER INCOME (EXPENSE): | |||||||
Interest expense, net of interest capitalized | (32,746 | ) | (20,960 | ) | |||
Interest income | 155 | 587 | |||||
Other - net | (1,041 | ) | (351 | ) | |||
Total other income (expense) - net | (33,632 | ) | (20,724 | ) | |||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 140,910 | 55,833 | |||||
Provision for income taxes | 17,241 | 281 | |||||
NET INCOME FROM CONTINUING OPERATIONS | 123,669 | 55,552 | |||||
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX | — | 4,043 | |||||
NET INCOME | $ | 123,669 | $ | 59,595 | |||
INCOME PER SHARE - BASIC: | |||||||
Income from continuing operations | $ | 0.99 | $ | 0.45 | |||
Discontinued operations | $ | — | $ | 0.03 | |||
Net income | $ | 0.99 | $ | 0.48 | |||
INCOME PER SHARE - DILUTED: | |||||||
Income from continuing operations | $ | 0.99 | $ | 0.45 | |||
Discontinued operations | $ | — | $ | 0.03 | |||
Net income | $ | 0.99 | $ | 0.48 | |||
CASH DIVIDENDS DECLARED PER SHARE | $ | 0.10 | $ | — |
Three months ended March 31, | |||||||
2015 | 2014 | ||||||
NET INCOME | $ | 123,669 | $ | 59,595 | |||
OTHER COMPREHENSIVE INCOME: | |||||||
Net reclassification adjustment for amounts recognized in net income as a component of net periodic benefit cost, net of income tax expense of $1,808 and $1,287, respectively | 3,386 | 2,404 | |||||
COMPREHENSIVE INCOME | $ | 127,055 | $ | 61,999 |
Three months ended March 31, | |||||||
2015 | 2014 | ||||||
CASH PROVIDED BY OPERATIONS: | |||||||
Net income | $ | 123,669 | $ | 59,595 | |||
Adjustments to reconcile net income to net cash provided by operations: | |||||||
Depreciation and amortization | 90,564 | 70,873 | |||||
Deferred income taxes | (7,541 | ) | (1,489 | ) | |||
Provision for pension and other postemployment benefits | 7,844 | 6,170 | |||||
Share-based compensation expense | 5,190 | 7,547 | |||||
Gain on disposals of property, plant and equipment | (513 | ) | (1,110 | ) | |||
Other postemployment benefit claims paid | (1,115 | ) | (894 | ) | |||
Contributions to pension plans | (375 | ) | (6,448 | ) | |||
Changes in current assets and liabilities: | |||||||
Receivables - trade and other | 42,053 | (39,090 | ) | ||||
Prepaid expenses and other current assets | 4,350 | 12,248 | |||||
Accounts payable | 6,894 | (13,637 | ) | ||||
Accrued income taxes | 12,300 | 9,222 | |||||
Deferred revenues | 1,163 | (13,502 | ) | ||||
Other current liabilities | (47,075 | ) | (11,037 | ) | |||
Net changes in other noncurrent assets and liabilities | 7,358 | 2,075 | |||||
Net cash provided by operations | 244,766 | 80,523 | |||||
CASH USED IN INVESTING ACTIVITIES: | |||||||
Capital expenditures | (514,265 | ) | (532,518 | ) | |||
Proceeds from disposals of property, plant and equipment | 1,680 | 6,600 | |||||
Net cash used in investing activities | (512,585 | ) | (525,918 | ) | |||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES: | |||||||
Proceeds from borrowings | — | 793,380 | |||||
Dividends paid | (12,562 | ) | — | ||||
Debt issue costs | — | (687 | ) | ||||
Excess tax benefit (deficit) from share-based compensation | (1,981 | ) | (563 | ) | |||
Proceeds from exercise of share options | — | 810 | |||||
Net cash provided by (used in) financing activities | (14,543 | ) | 792,940 | ||||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (282,362 | ) | 347,545 | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 339,154 | 1,092,844 | |||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 56,792 | $ | 1,440,389 |
Shares outstanding | Class A ordinary shares/ Common stock | Additional paid-in capital | Retained earnings | Treasury shares | Accumulated other comprehensive income (loss) | Total shareholders' equity | ||||||||||||||||||||
Balance, January 1, 2014 | 124,237 | $ | 15,597 | $ | 1,407,031 | $ | 3,619,540 | $ | (5,962 | ) | $ | (142,445 | ) | $ | 4,893,761 | |||||||||||
Net shares issued (acquired) under share-based compensation plans | 78 | 2 | 529 | — | (4,381 | ) | — | (3,850 | ) | |||||||||||||||||
Share-based compensation | — | — | 5,717 | — | — | — | 5,717 | |||||||||||||||||||
Excess tax benefit (deficit) from share-based compensation plans | — | — | (563 | ) | — | — | — | (563 | ) | |||||||||||||||||
Retirement benefit adjustments, net of taxes of $1,287 | — | — | — | — | — | 2,404 | 2,404 | |||||||||||||||||||
Other | — | — | — | — | — | (287 | ) | (287 | ) | |||||||||||||||||
Net income | — | — | — | 59,595 | — | — | 59,595 | |||||||||||||||||||
Balance, March 31, 2014 | 124,315 | $ | 15,599 | $ | 1,412,714 | $ | 3,679,135 | $ | (10,343 | ) | $ | (140,328 | ) | $ | 4,956,777 | |||||||||||
Balance, January 1, 2015 | 124,564 | $ | 15,604 | $ | 1,436,910 | $ | 3,466,993 | $ | (7,990 | ) | $ | (220,118 | ) | $ | 4,691,399 | |||||||||||
Net shares issued (acquired) under share-based compensation plans | 199 | 137 | — | — | (3,463 | ) | — | (3,326 | ) | |||||||||||||||||
Share-based compensation | — | — | 5,761 | — | — | — | 5,761 | |||||||||||||||||||
Excess tax benefit (deficit) from share-based compensation plans | — | — | (1,981 | ) | — | — | — | (1,981 | ) | |||||||||||||||||
Retirement benefit adjustments, net of taxes of $1,808 | — | — | — | — | — | 3,386 | 3,386 | |||||||||||||||||||
Dividends | — | — | — | (12,562 | ) | — | — | (12,562 | ) | |||||||||||||||||
Net income | — | — | — | 123,669 | — | — | 123,669 | |||||||||||||||||||
Balance, March 31, 2015 | 124,763 | $ | 15,741 | $ | 1,440,690 | $ | 3,578,100 | $ | (11,453 | ) | $ | (216,732 | ) | $ | 4,806,346 |
Three months ended March 31, | |||||
2015 | 2014 | ||||
Average common shares outstanding | 124,294 | 123,707 | |||
Effect of dilutive securities - share-based compensation | 806 | 970 | |||
Average shares for diluted computations | 125,100 | 124,677 |
Three months ended March 31, | |||||
2015 | 2014 | ||||
Share options and appreciation rights | 1,456 | 1,108 | |||
Restricted share units | 1,533 | — | |||
Total potentially dilutive shares | 2,989 | 1,108 |
Three months ended March 31, | |||||||
2015 | 2014 | ||||||
Service cost | $ | 4,189 | $ | 3,620 | |||
Interest cost | 7,860 | 8,092 | |||||
Expected return on plan assets | (10,414 | ) | (10,251 | ) | |||
Amortization of net loss | 6,311 | 4,231 | |||||
Amortization of prior service credit | (1,115 | ) | (1,110 | ) | |||
Total net pension cost | $ | 6,831 | $ | 4,582 |
Three months ended March 31, | |||||||
2015 | 2014 | ||||||
Service cost | $ | 320 | $ | 267 | |||
Interest cost | 695 | 757 | |||||
Amortization of net loss | (2 | ) | (39 | ) | |||
Amortization of prior service credit | — | (8 | ) | ||||
Total other postemployment benefit cost | $ | 1,013 | $ | 977 |
• | Level 1 – Quoted prices for identical instruments in active markets; |
• | Level 2 – Quoted market prices for similar instruments in active markets; quoted prices for identical instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and |
• | Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable, such as those used in pricing models or discounted cash flow methodologies, for example. |
Estimated fair value measurements | |||||||||||||||
Carrying value | Quoted prices in active markets (Level 1) | Significant other observable inputs (Level 2) | Significant other unobservable inputs (Level 3) | ||||||||||||
March 31, 2015: | |||||||||||||||
Assets - cash equivalents | $ | 30,084 | $ | 30,084 | $ | — | $ | — | |||||||
Other assets | 14,945 | 14,945 | — | — | |||||||||||
December 31, 2014: | |||||||||||||||
Assets - cash equivalents | $ | 314,570 | $ | 314,570 | $ | — | $ | — | |||||||
Other assets | 16,304 | 16,304 | — | — |
Three months ended March 31, | |||||||
2015 | 2014 | ||||||
Amounts recognized as a component of net periodic pension and other postretirement benefit cost: | |||||||
Amortization of net loss | $ | (6,309 | ) | $ | (4,811 | ) | |
Amortization of prior service credit | 1,115 | 1,120 | |||||
Total before income taxes | (5,194 | ) | (3,691 | ) | |||
Income tax benefit | 1,808 | 1,287 | |||||
Total reclassifications for the period, net of income taxes | $ | (3,386 | ) | $ | (2,404 | ) |
March 31, 2015 | December 31, 2014 | ||||||
Trade | $ | 486,265 | $ | 524,712 | |||
Income tax | 5,186 | 6,315 | |||||
Other | 11,700 | 14,177 | |||||
Total receivables - trade and other | $ | 503,151 | $ | 545,204 |
Rowan plc (Parent) | RCI (Issuer) | Non-guarantor subsidiaries | Consolidating adjustments | Consolidated | |||||||||||||||
CURRENT ASSETS: | |||||||||||||||||||
Cash and cash equivalents | $ | 895 | $ | 2,946 | $ | 52,951 | $ | — | $ | 56,792 | |||||||||
Receivables - trade and other | 76 | 5,617 | 497,458 | — | 503,151 | ||||||||||||||
Other current assets | 212 | 43,565 | 8,270 | — | 52,047 | ||||||||||||||
Total current assets | 1,183 | 52,128 | 558,679 | — | 611,990 | ||||||||||||||
Property, plant and equipment - gross | — | 550,095 | 8,765,844 | — | 9,315,939 | ||||||||||||||
Less accumulated depreciation and amortization | — | 228,765 | 1,223,148 | — | 1,451,913 | ||||||||||||||
Property, plant and equipment - net | — | 321,330 | 7,542,696 | — | 7,864,026 | ||||||||||||||
Investments in subsidiaries | 4,754,045 | 6,196,899 | — | (10,950,944 | ) | — | |||||||||||||
Due from affiliates | 57,359 | 1,556,471 | 246,421 | (1,860,251 | ) | — | |||||||||||||
Other assets | — | 17,792 | 18,156 | — | 35,948 | ||||||||||||||
$ | 4,812,587 | $ | 8,144,620 | $ | 8,365,952 | $ | (12,811,195 | ) | $ | 8,511,964 | |||||||||
CURRENT LIABILITIES: | |||||||||||||||||||
Accounts payable - trade | $ | 229 | $ | 14,576 | $ | 103,268 | $ | — | $ | 118,073 | |||||||||
Deferred revenues | — | — | 37,352 | — | 37,352 | ||||||||||||||
Accrued liabilities | 321 | 85,130 | 77,357 | — | 162,808 | ||||||||||||||
Total current liabilities | 550 | 99,706 | 217,977 | — | 318,233 | ||||||||||||||
Long-term debt | — | 2,807,114 | — | — | 2,807,114 | ||||||||||||||
Due to affiliates | 1,081 | 245,024 | 1,614,146 | (1,860,251 | ) | — | |||||||||||||
Other liabilities | 4,610 | 306,343 | 62,420 | — | 373,373 | ||||||||||||||
Deferred income taxes - net | — | 517,836 | 162,544 | (473,482 | ) | 206,898 | |||||||||||||
Shareholders' equity | 4,806,346 | 4,168,597 | 6,308,865 | (10,477,462 | ) | 4,806,346 | |||||||||||||
$ | 4,812,587 | $ | 8,144,620 | $ | 8,365,952 | $ | (12,811,195 | ) | $ | 8,511,964 |
Rowan plc (Parent) | RCI (Issuer) | Non-guarantor subsidiaries | Consolidating adjustments | Consolidated | |||||||||||||||
CURRENT ASSETS: | |||||||||||||||||||
Cash and cash equivalents | $ | 45,909 | $ | 48,580 | $ | 244,665 | $ | — | $ | 339,154 | |||||||||
Receivables - trade and other | 26 | 4,317 | 540,861 | — | 545,204 | ||||||||||||||
Other current assets | 424 | 47,986 | 8,328 | — | 56,738 | ||||||||||||||
Total current assets | 46,359 | 100,883 | 793,854 | — | 941,096 | ||||||||||||||
Property, plant and equipment - gross | — | 610,063 | 8,190,119 | — | 8,800,182 | ||||||||||||||
Less accumulated depreciation and amortization | — | 271,293 | 1,096,677 | — | 1,367,970 | ||||||||||||||
Property, plant and equipment - net | — | 338,770 | 7,093,442 | — | 7,432,212 | ||||||||||||||
Investments in subsidiaries | 4,624,874 | 5,863,509 | — | (10,488,383 | ) | — | |||||||||||||
Due from affiliates | 36,586 | 1,412,860 | 71,867 | (1,521,313 | ) | — | |||||||||||||
Other assets | — | 18,103 | 19,781 | — | 37,884 | ||||||||||||||
$ | 4,707,819 | $ | 7,734,125 | $ | 7,978,944 | $ | (12,009,696 | ) | $ | 8,411,192 | |||||||||
CURRENT LIABILITIES: | |||||||||||||||||||
Accounts payable - trade | $ | 912 | $ | 8,576 | $ | 93,285 | $ | — | $ | 102,773 | |||||||||
Deferred revenues | — | — | 36,189 | — | 36,189 | ||||||||||||||
Accrued liabilities | 400 | 100,167 | 93,692 | — | 194,259 | ||||||||||||||
Total current liabilities | 1,312 | 108,743 | 223,166 | — | 333,221 | ||||||||||||||
Long-term debt | — | 2,807,324 | — | — | 2,807,324 | ||||||||||||||
Due to affiliates | 9,282 | 45,457 | 1,466,574 | (1,521,313 | ) | — | |||||||||||||
Other liabilities | 5,826 | 312,575 | 49,865 | — | 368,266 | ||||||||||||||
Deferred income taxes - net | — | 507,281 | 167,094 | (463,393 | ) | 210,982 | |||||||||||||
Shareholders' equity | 4,691,399 | 3,952,745 | 6,072,245 | (10,024,990 | ) | 4,691,399 | |||||||||||||
$ | 4,707,819 | $ | 7,734,125 | $ | 7,978,944 | $ | (12,009,696 | ) | $ | 8,411,192 |
Rowan plc (Parent) | RCI (Issuer) | Non-guarantor subsidiaries | Consolidating adjustments | Consolidated | |||||||||||||||
REVENUES | $ | — | $ | 15,046 | $ | 547,351 | $ | (15,358 | ) | $ | 547,039 | ||||||||
COSTS AND EXPENSES: | |||||||||||||||||||
Direct operating costs (excluding items below) | — | 1,697 | 268,291 | (14,254 | ) | 255,734 | |||||||||||||
Depreciation and amortization | — | 4,580 | 84,861 | 249 | 89,690 | ||||||||||||||
Selling, general and administrative | 4,212 | 642 | 24,085 | (1,353 | ) | 27,586 | |||||||||||||
Gain on disposals of property and equipment | — | (342 | ) | (171 | ) | — | (513 | ) | |||||||||||
Total costs and expenses | 4,212 | 6,577 | 377,066 | (15,358 | ) | 372,497 | |||||||||||||
INCOME (LOSS) FROM OPERATIONS | (4,212 | ) | 8,469 | 170,285 | — | 174,542 | |||||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||||||
Interest expense, net of interest capitalized | — | (32,746 | ) | (2,449 | ) | 2,449 | (32,746 | ) | |||||||||||
Interest income | 134 | 2,467 | 3 | (2,449 | ) | 155 | |||||||||||||
Other - net | 5,604 | (5,523 | ) | (1,122 | ) | — | (1,041 | ) | |||||||||||
Total other income (expense) - net | 5,738 | (35,802 | ) | (3,568 | ) | — | (33,632 | ) | |||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 1,526 | (27,333 | ) | 166,717 | — | 140,910 | |||||||||||||
Provision for income taxes | — | 390 | 28,749 | (11,898 | ) | 17,241 | |||||||||||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | 1,526 | (27,723 | ) | 137,968 | 11,898 | 123,669 | |||||||||||||
DISCONTINUED OPERATIONS, NET OF TAX | — | — | — | — | — | ||||||||||||||
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX | 122,143 | 22,078 | — | (144,221 | ) | — | |||||||||||||
NET INCOME (LOSS) | $ | 123,669 | $ | (5,645 | ) | $ | 137,968 | $ | (132,323 | ) | $ | 123,669 |
Rowan plc (Parent) | RCI (Issuer) | Non-guarantor subsidiaries | Consolidating adjustments | Consolidated | |||||||||||||||
REVENUES | $ | — | $ | 16,162 | $ | 376,494 | $ | (15,054 | ) | $ | 377,602 | ||||||||
COSTS AND EXPENSES: | |||||||||||||||||||
Direct operating costs (excluding items below) | — | 3,156 | 232,267 | (15,054 | ) | 220,369 | |||||||||||||
Depreciation and amortization | — | 4,562 | 66,311 | — | 70,873 | ||||||||||||||
Selling, general and administrative | 5,820 | 1,229 | 22,826 | — | 29,875 | ||||||||||||||
Loss on disposals of property and equipment | — | 17 | 786 | — | 803 | ||||||||||||||
Litigation settlement | — | — | (20,875 | ) | — | (20,875 | ) | ||||||||||||
Total costs and expenses | 5,820 | 8,964 | 301,315 | (15,054 | ) | 301,045 | |||||||||||||
INCOME (LOSS) FROM OPERATIONS | (5,820 | ) | 7,198 | 75,179 | — | 76,557 | |||||||||||||
OTHER INCOME (EXPENSE): | |||||||||||||||||||
Interest expense, net of interest capitalized | — | (20,960 | ) | (240 | ) | 240 | (20,960 | ) | |||||||||||
Interest income | 109 | 447 | 271 | (240 | ) | 587 | |||||||||||||
Other - net | 3,500 | (3,494 | ) | (357 | ) | — | (351 | ) | |||||||||||
Total other income (expense) - net | 3,609 | (24,007 | ) | (326 | ) | — | (20,724 | ) | |||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (2,211 | ) | (16,809 | ) | 74,853 | — | 55,833 | ||||||||||||
(Benefit) provision for income taxes | — | (8,949 | ) | 16,406 | (7,176 | ) | 281 | ||||||||||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS | (2,211 | ) | (7,860 | ) | 58,447 | 7,176 | 55,552 | ||||||||||||
DISCONTINUED OPERATIONS, NET OF TAX | — | 4,043 | — | — | 4,043 | ||||||||||||||
EQUITY IN EARNINGS OF SUBSIDIARIES, NET OF TAX | 61,806 | 25,380 | — | (87,186 | ) | — | |||||||||||||
NET INCOME | $ | 59,595 | $ | 21,563 | $ | 58,447 | $ | (80,010 | ) | $ | 59,595 |
Rowan plc (Parent) | RCI (Issuer) | Non-guarantor subsidiaries | Consolidating adjustments | Consolidated | |||||||||||||||
NET INCOME (LOSS) | $ | 123,669 | $ | (5,645 | ) | $ | 137,968 | $ | (132,323 | ) | $ | 123,669 | |||||||
OTHER COMPREHENSIVE INCOME: | |||||||||||||||||||
Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes | 3,386 | 3,386 | — | (3,386 | ) | 3,386 | |||||||||||||
COMPREHENSIVE INCOME (LOSS) | $ | 127,055 | $ | (2,259 | ) | $ | 137,968 | $ | (135,709 | ) | $ | 127,055 |
Rowan plc (Parent) | RCI (Issuer) | Non-guarantor subsidiaries | Consolidating adjustments | Consolidated | |||||||||||||||
NET INCOME | $ | 59,595 | $ | 21,563 | $ | 58,447 | $ | (80,010 | ) | $ | 59,595 | ||||||||
OTHER COMPREHENSIVE INCOME: | |||||||||||||||||||
Net reclassification adjustments for amount recognized in net income as a component of net periodic benefit cost, net of income taxes | 2,404 | 2,404 | — | (2,404 | ) | 2,404 | |||||||||||||
COMPREHENSIVE INCOME | $ | 61,999 | $ | 23,967 | $ | 58,447 | $ | (82,414 | ) | $ | 61,999 |
Rowan plc (Parent) | RCI (Issuer) | Non-guarantor subsidiaries | Consolidating adjustments | Consolidated | |||||||||||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ | (3,615 | ) | $ | (19,741 | ) | $ | 266,064 | $ | 2,058 | $ | 244,766 | |||||||
INVESTING ACTIVITIES: | |||||||||||||||||||
Property, plant and equipment additions | — | (1,758 | ) | (512,507 | ) | — | (514,265 | ) | |||||||||||
Proceeds from disposals of property, plant and equipment | — | 1,198 | 482 | — | 1,680 | ||||||||||||||
Net cash used in investing activities | — | (560 | ) | (512,025 | ) | — | (512,585 | ) | |||||||||||
FINANCING ACTIVITIES: | |||||||||||||||||||
Advances (to) from affiliates | (28,837 | ) | (23,352 | ) | 54,247 | (2,058 | ) | — | |||||||||||
Dividends paid | (12,562 | ) | — | — | — | (12,562 | ) | ||||||||||||
Excess tax benefit (deficit) from share-based compensation | — | (1,981 | ) | — | — | (1,981 | ) | ||||||||||||
Net cash provided by (used in) financing activities | (41,399 | ) | (25,333 | ) | 54,247 | (2,058 | ) | (14,543 | ) | ||||||||||
DECREASE IN CASH AND CASH EQUIVALENTS | (45,014 | ) | (45,634 | ) | (191,714 | ) | — | (282,362 | ) | ||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 45,909 | 48,580 | 244,665 | — | 339,154 | ||||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 895 | $ | 2,946 | $ | 52,951 | $ | — | $ | 56,792 |
Rowan plc (Parent) | RCI (Issuer) | Non-guarantor subsidiaries | Consolidating adjustments | Consolidated | |||||||||||||||
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ | 67,801 | $ | 287,495 | $ | 290,409 | $ | (565,182 | ) | $ | 80,523 | ||||||||
INVESTING ACTIVITIES: | |||||||||||||||||||
Property, plant and equipment additions | — | (4,236 | ) | (528,282 | ) | — | (532,518 | ) | |||||||||||
Proceeds from disposals of property, plant and equipment | — | 6,007 | 593 | — | 6,600 | ||||||||||||||
Investments in consolidated subsidiaries | — | (74,305 | ) | — | 74,305 | — | |||||||||||||
Net cash used in investing activities | — | (72,534 | ) | (527,689 | ) | 74,305 | (525,918 | ) | |||||||||||
FINANCING ACTIVITIES: | |||||||||||||||||||
Advances (to) from affiliates | (16,893 | ) | (355,605 | ) | (42,684 | ) | 415,182 | — | |||||||||||
Contributions from parent | — | — | 74,305 | (74,305 | ) | — | |||||||||||||
Proceeds from borrowings | — | 793,380 | — | — | 793,380 | ||||||||||||||
Debt issue costs | — | (687 | ) | — | — | (687 | ) | ||||||||||||
Dividends paid | — | (75,000 | ) | (75,000 | ) | 150,000 | — | ||||||||||||
Excess tax benefit (deficit) from share-based compensation | — | (563 | ) | — | — | (563 | ) | ||||||||||||
Proceeds from exercise of share options | 810 | — | — | — | 810 | ||||||||||||||
Net cash provided by (used in) financing activities | (16,083 | ) | 361,525 | (43,379 | ) | 490,877 | 792,940 | ||||||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 51,718 | 576,486 | (280,659 | ) | — | 347,545 | |||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 64,292 | 92,116 | 936,436 | — | 1,092,844 | ||||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 116,010 | $ | 668,602 | $ | 655,777 | $ | — | $ | 1,440,389 |
Three months ended March 31, | |||||||
2015 | 2014 | ||||||
Revenues (in thousands): | |||||||
Ultra-deepwater drillships | $ | 142,676 | $ | — | |||
High specification jack-ups(1) | 312,664 | 281,801 | |||||
Premium jack-ups(2) | 80,475 | 76,262 | |||||
Conventional jack-ups | 716 | 10,961 | |||||
Subtotal - Day rate revenues | $ | 536,531 | $ | 369,024 | |||
Other revenues(3) | 10,508 | 8,578 | |||||
Total revenues | $ | 547,039 | $ | 377,602 | |||
Revenue-producing days: | |||||||
Ultra-deepwater drillships | 226 | — | |||||
High specification jack-ups | 1,471 | 1,410 | |||||
Premium jack-ups | 705 | 653 | |||||
Conventional jack-ups | 9 | 90 | |||||
Total revenue-producing days | 2,411 | 2,153 | |||||
Average day rate: (4) | |||||||
Ultra-deepwater drillships | $ | 631,949 | $ | — | |||
High specification jack-ups | $ | 212,591 | $ | 199,848 | |||
Premium jack-ups | $ | 114,195 | $ | 116,802 | |||
Conventional jack-ups | $ | 72,975 | $ | 121,797 | |||
Total fleet | $ | 222,532 | $ | 171,401 | |||
Utilization: (5) | |||||||
Ultra-deepwater drillships | 94 | % | — | % | |||
High specification jack-ups | 86 | % | 83 | % | |||
Premium jack-ups | 98 | % | 91 | % | |||
Conventional jack-ups | 4 | % | 33 | % | |||
Total fleet | 82 | % | 80 | % | |||
(1) We define high-specification jack-ups as those that have hook-load capacity of at least two million pounds. | |||||||
(2) We define premium jack-ups as those cantilevered rigs capable of operating in water depths of 300 feet or more. | |||||||
(3) Other revenues, which are primarily revenues received for contract reimbursable costs, are excluded from the computation of average day rate. | |||||||
(4) Average day rate is computed by dividing day rate revenues by the number of revenue-producing days, including fractional days. Day rate revenues include the contractual rates and amounts received in lump sum, such as for rig mobilization or capital improvements, which are amortized over the initial term of the contract. Revenues attributable to reimbursable expenses are excluded from average day rates. | |||||||
(5) Utilization is the number of revenue-producing days, including fractional days, divided by the aggregate number of calendar days in the period, or, with respect to newly constructed rigs, the number of calendar days in the period from the date the rig was placed in service. |
Three months ended March 31, | |||||||
2015 | 2014 | ||||||
Revenues (in thousands): | |||||||
North Sea | $ | 154,971 | $ | 104,460 | |||
Middle East(1) | 118,868 | 114,094 | |||||
US GOM | 122,292 | 62,362 | |||||
Southeast Asia | 35,042 | 52,266 | |||||
West Africa | 56,573 | — | |||||
Other international(2) | 48,785 | 35,842 | |||||
Subtotal - Day rate revenues | 536,531 | 369,024 | |||||
Other revenues(3) | 10,508 | 8,578 | |||||
Total revenues | $ | 547,039 | $ | 377,602 | |||
Revenue-producing days: | |||||||
North Sea | 524 | 382 | |||||
Middle East | 858 | 839 | |||||
US GOM | 449 | 406 | |||||
Southeast Asia | 225 | 329 | |||||
West Africa | 90 | — | |||||
Other international | 265 | 197 | |||||
Total revenue-producing days | 2,411 | 2,153 | |||||
Average day rate:(4) | |||||||
North Sea | $ | 295,793 | $ | 273,612 | |||
Middle East | $ | 138,516 | $ | 135,971 | |||
US GOM | $ | 272,100 | $ | 153,601 | |||
Southeast Asia | $ | 155,742 | $ | 158,703 | |||
West Africa | $ | 628,589 | $ | — | |||
Other international | $ | 184,428 | $ | 182,151 | |||
Total fleet | $ | 222,532 | $ | 171,401 | |||
Utilization:(5) | |||||||
North Sea | 97 | % | 71 | % | |||
Middle East | 95 | % | 93 | % | |||
US GOM | 58 | % | 64 | % | |||
Southeast Asia | 63 | % | 92 | % | |||
West Africa | 100 | % | — | % | |||
Other international | 98 | % | 73 | % | |||
Total fleet | 82 | % | 80 | % | |||
(1) Our rigs operating in the Middle East are located in Saudi Arabia and Qatar. | |||||||
(2) "Other international" includes two rigs operating in Trinidad. Additionally, another rig operated in Egypt in 2014 and Tunisia in 2015. | |||||||
(3) Other revenues, which are primarily revenues received for contract reimbursable costs, are excluded from the computation of average day rate. | |||||||
(4) Average day rate is computed by dividing day rate revenues by the number of revenue-producing days, including fractional days. Day rate revenues include the contractual rates and amounts received in lump sum, such as for rig mobilization or capital improvements, which are amortized over the initial term of the contract. Revenues attributable to reimbursable expenses are excluded from average day rates. | |||||||
(5) Utilization is the number of revenue-producing days, including fractional days, divided by the aggregate number of calendar days in the period, or, with respect to newly constructed rigs, the number of calendar days in the period from the date the rig was placed in service. |
Three months ended March 31, 2015 | Three months ended March 31, 2014 | ||||||||||||
Amount | % of Revenues | Amount | % of Revenues | ||||||||||
Revenues | $ | 547.0 | 100 | % | $ | 377.6 | 100 | % | |||||
Direct operating costs (excluding items below) | (255.7 | ) | -47 | % | (220.4 | ) | -58 | % | |||||
Depreciation expense | (89.7 | ) | -16 | % | (70.9 | ) | -19 | % | |||||
Selling, general and administrative expenses | (27.6 | ) | -5 | % | (29.9 | ) | -8 | % | |||||
Net gain (loss) on disposals of property and equipment | 0.5 | — | % | (0.8 | ) | — | % | ||||||
Litigation settlement | — | — | % | 20.9 | 6 | % | |||||||
Operating income | $ | 174.5 | 32 | % | $ | 76.5 | 20 | % |
Increase | |||
Addition of the Rowan Renaissance, Rowan Resolute, and Rowan Reliance | $ | 142.7 | |
Higher average day rates | 19.3 | ||
Higher jack-up utilization | 5.5 | ||
Revenues for reimbursable costs and other, net | 1.9 | ||
Net increase | $ | 169.4 |
Increase (decrease) | |||
Addition of the Rowan Renaissance, Rowan Resolute and Rowan Reliance | $ | 42.9 | |
Return to work of the Rowan Gorilla III and Gorilla VI | 12.8 | ||
Reimbursable costs and other, net | (20.3 | ) | |
Net increase | $ | 35.4 |
April 22, 2015 | |||||||||||
Jack-ups | Drillships | Total | |||||||||
US GOM | $ | 6 | $ | 2,022 | $ | 2,028 | |||||
Middle East | 1,556 | — | 1,556 | ||||||||
North Sea | 835 | — | 835 | ||||||||
West Africa | — | 25 | 25 | ||||||||
Southeast Asia | 47 | — | 47 | ||||||||
Other international | 196 | — | 196 | ||||||||
Total backlog | $ | 2,640 | $ | 2,047 | $ | 4,687 |
April 22, 2015 | |||||||||||
Jack-ups | Drillships | Total | |||||||||
2015 | $ | 759 | $ | 573 | $ | 1,332 | |||||
2016 | 786 | 885 | 1,671 | ||||||||
2017 | 490 | 571 | 1,061 | ||||||||
2018 | 256 | 18 | 274 | ||||||||
2019 and later years | 349 | — | 349 | ||||||||
Total backlog | $ | 2,640 | $ | 2,047 | $ | 4,687 |
March 31, 2015 | December 31, 2014 | ||||||
Cash and cash equivalents | $ | 56.8 | $ | 339.2 | |||
Current assets | $ | 612.0 | $ | 941.1 | |||
Current liabilities | $ | 318.2 | $ | 333.2 | |||
Current ratio | 1.92 | 2.82 | |||||
Long-term debt | $ | 2,807.1 | $ | 2,807.3 | |||
Shareholders' equity | $ | 4,806.3 | $ | 4,691.4 | |||
Debt to capitalization ratio | 37 | % | 37 | % |
Three months ended March 31, | |||||||
2015 | 2014 | ||||||
Net cash provided by operating activities | $ | 244.8 | $ | 80.5 | |||
Capital expenditures | (514.3 | ) | (532.5 | ) | |||
Proceeds from borrowings, net of issue costs | — | 792.7 | |||||
Payment of cash dividends | (12.6 | ) | — | ||||
Proceeds from disposals of property and equipment | 1.7 | 6.6 | |||||
Proceeds from exercise of share options | — | 0.8 | |||||
Excess tax benefits (deficit) from share-based compensation | (2.0 | ) | (0.6 | ) | |||
Total net source (use) | $ | (282.4 | ) | $ | 347.5 |
• | $478 million for construction of the Rowan Reliance and Rowan Relentless, including costs for mobilization, commissioning, riser gas-handling equipment, software certifications and spares. |
• | $32 million for improvements to the existing fleet, including contractually required modifications; and |
• | $4 million for rig equipment inventory and other. |
Month ended | Total number of shares acquired 1 | Average price paid per share 1 | Total number of shares purchased as part of publicly announced plans or programs 2 | Approximate dollar value of shares that may yet be purchased under the plans or programs 2 | ||||||||
Balance forward | $ | — | ||||||||||
January 31, 2015 | 1,734 | $9.56 | — | — | ||||||||
February 28, 2015 | 1,101,133 | $0.13 | — | — | ||||||||
March 31, 2015 | 47,760 | $20.19 | — | — | ||||||||
Total | 1,150,627 | $0.98 | — | |||||||||
1 The total number of shares acquired includes shares acquired from employees by an affiliated employee benefit trust (EBT) upon forfeiture of nonvested awards or in satisfaction of tax withholding requirements and shares purchased, if any, pursuant to a publicly announced share repurchase program. The price paid for shares acquired as a result of forfeitures is the par value of $0.125 per share. The price paid for shares acquired in satisfaction of withholding taxes is the share price on the date of the transaction. In February 2015, the Company issued 1.1 million shares to the EBT, which shares were acquired at a price equal to the par value of $0.125 per share. There were no shares repurchased under any share repurchase program during the first quarter of 2015. | ||||||||||||
2 The ability to make share repurchases is subject to the discretion of the Board of Directors and the limitations set forth in the Companies Act, which generally provide that share repurchases may only be made out of distributable reserves. In addition, U.K. law also generally prohibits a company from repurchasing its own shares through “off market purchases” without the prior approval of shareholders, which approval is valid for a maximum period of five years. Prior to and in connection with the redomestication, the Company obtained approval to purchase its own shares. To effect such repurchases, the Company entered into a purchase agreement with a specified dealer in July 2012, pursuant to which the Company may purchase up to a maximum of 50,000,000 shares over a five-year period, subject to an annual cap of 10% of the shares outstanding at the beginning of each applicable year. Subject to Board approval, share repurchases may be commenced or suspended from time to time without prior notice and, in accordance with the shareholder approval and U.K. law, any shares repurchased by the Company will be cancelled. The authority to repurchase shares terminates in April 2017 unless otherwise reapproved by the Company’s shareholders prior to that time. U.K. law prohibits the Company from conducting “on market purchases” because its shares are not traded on a recognized investment exchange in the U.K. |
31.1* | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2* | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1* | Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2* | Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101.INS* | XBRL Instance Document. |
101.SCH* | XBRL Taxonomy Extension Schema Document. |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document. |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document. |
ROWAN COMPANIES PLC | ||
(Registrant) | ||
Date: May 6, 2015 | /s/ STEPHEN M. BUTZ | |
Stephen M. Butz | ||
Executive Vice President, | ||
Chief Financial Officer and Treasurer | ||
Date: May 6, 2015 | /s/ GREGORY M. HATFIELD | |
Gregory M. Hatfield | ||
Vice President and Controller | ||
(Chief Accounting Officer) |
1. | I have reviewed this Form 10-Q of Rowan Companies plc; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: May 6, 2015 | /s/ THOMAS P. BURKE | |
Thomas P. Burke | ||
Chief Executive Officer |
1. | I have reviewed this Form 10-Q of Rowan Companies plc; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: May 6, 2015 | /s/ STEPHEN M. BUTZ | |
Stephen M. Butz | ||
Executive Vice President, Chief Financial Officer and Treasurer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented. |
Date: May 6, 2015 | /s/ THOMAS P. BURKE | |
Thomas P. Burke | ||
Chief Executive Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented. |
Date: May 6, 2015 | /s/ STEPHEN M. BUTZ | |
Stephen M. Butz | ||
Executive Vice President, Chief Financial Officer and Treasurer |
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