Rowan
Reports First Quarter 2012 Operating Results
HOUSTON,
May 2, 2012 /PRNewswire/ -- For the three months ended March 31, 2012, Rowan Companies, Inc. ("Rowan" or the "Company")
(NYSE: RDC) generated net income from continuing operations of $55.5 million or $0.45 per share, compared to $26.8 million or
$0.21 per share in the first quarter of 2011. Net income totaled $49.5 million or $0.40 per share in the first quarter of 2012,
compared to $32.1 million or $0.25 per share in the first quarter of 2011.
(Logo:
http://photos.prnewswire.com/prnh/20081031/DA43093LOGO)
Rowan's
revenues were $333.5 million in the first quarter of 2012, up by 62% over the prior-year quarter due primarily to incremental
activity from fleet additions and higher utilization of existing rigs between periods. The Company's operating income was $64.8
million in the first quarter of 2012, up by 81% over the prior-year quarter.
Costs
and expenses during the first quarter of 2012 included $4.6 million of unusual or one-time items, or $0.02 per share after tax,
from a write-down of the carrying value of steel remaining from a jack-up rig construction project cancelled in 2009 and transactional
costs of the Company's corporate redomestication.
Matt
Ralls, President and Chief Executive Officer, commented, "During the first quarter, we continued to see solid demand and
increasing day rates for high specification jack-ups in most markets. We were pleased to increase our Southeast Asia presence
with commitments for two additional rigs, which will bring us to four rigs in the region. Despite the short-term impact of rig
relocations on operating results, we will continue to opportunistically redeploy our assets to maximize long-term returns.
"On
the ultra-deepwater front, we are receiving very positive reactions from potential customers to our deepwater management team
and the design of our drillships. Recent ultra deepwater contract fixtures have been very encouraging, and we remain confident
in our decision to enter this market and in our ability to obtain attractive term contracts with customers seeking the superior
operating capabilities these rigs will offer."
Rowan
will conduct its earnings conference call on Wednesday, May 2, 2012, at 10:00 a.m. Central Time. Interested parties are invited
to listen to the call by telephone or over the Internet. Individuals who wish to participate on the conference call by telephone
can dial (877) 869-3847, or internationally (201) 689-8261. You should dial-in approximately five to 10 minutes prior to the scheduled
start time. Alternatively, to access the online simulcast and rebroadcast of the conference call, please visit Rowan's website
at www.rowancompanies.com. You should connect to our website at least 15 minutes prior to the conference call to register, download
and install any necessary software.
Rowan
Companies, Inc. is a major provider of international and domestic contract drilling services with a leading position in high-specification
jack-up rigs. The Company's fleet of 31 jack-up rigs is located worldwide, including the Middle East, the North Sea, Trinidad,
Southeast Asia and the Gulf of Mexico. Rowan will enter the ultra-deepwater market with three high-specification drillships expected
to be delivered starting in late 2013. Rowan's stock is traded on the New York Stock Exchange under the symbol "RDC".
For more information on Rowan, please visit www.rowancompanies.com.
This
report contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including,
without limitation, statements as to the expectations, beliefs and future expected financial performance of the Company that are
based on current expectations and are subject to certain risks, trends and uncertainties that could cause actual results to differ
materially from those projected by the Company. Among the factors that could cause actual results to differ materially include
oil and natural gas prices, the level of offshore expenditures by energy companies, energy demand, the general economy, including
inflation, weather conditions in the Company's principal operating areas and environmental and other laws and regulations, including
changes in tax laws, whether our stockholders approve the merger (and related transactions) and whether we achieve the benefits
we expect from the proposed change in our corporate structure. Other relevant factors have been disclosed in the Company's filings
with the U.S. Securities and Exchange Commission.
ROWAN
COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited (In Millions) |
| |
|
|
|
| |
|
|
|
| |
MARCH
31, |
|
DECEMBER
31, |
| |
2012 |
|
2011 |
| |
|
|
|
| ASSETS |
|
|
|
| |
|
|
|
| Cash
and cash equivalents |
$
342.5 |
|
$
438.9 |
| Restricted
cash |
10.6 |
|
- |
| Accounts
receivable |
331.3 |
|
283.6 |
| Other
current assets |
66.9 |
|
71.6 |
| Assets
of discontinued operations |
25.4 |
|
27.6 |
|
Total current assets |
776.7 |
|
821.7 |
| Property,
plant and equipment - net |
5,726.8 |
|
5,678.7 |
| Other
assets |
97.8 |
|
97.4 |
|
TOTAL |
$
6,601.3 |
|
$
6,597.8 |
| |
|
|
|
| |
|
|
|
| LIABILITIES
AND STOCKHOLDERS' EQUITY |
|
|
|
| |
|
|
|
| Current
maturities of long-term debt |
$
226.1 |
|
$
45.0 |
| Accounts
payable |
87.9 |
|
111.1 |
| Other
current liabilities |
136.7 |
|
167.3 |
| Liabilities
of discontinued operations |
21.3 |
|
25.0 |
|
Total current liabilities |
472.0 |
|
348.4 |
| Long-term
debt |
896.1 |
|
1,089.3 |
| Other
liabilities |
851.7 |
|
834.1 |
| Stockholders'
equity |
4,381.5 |
|
4,326.0 |
|
TOTAL |
$
6,601.3 |
|
$
6,597.8 |
| ROWAN
COMPANIES, INC. |
| CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
| Unaudited
(In Millions Except Per Share Amounts) |
| |
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| |
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| |
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THREE
MONTHS |
|
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| |
ENDED
MARCH 31 |
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| |
2012 |
|
2011 |
|
|
|
|
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| |
|
|
|
|
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|
|
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| REVENUES |
$
333.5 |
|
$
206.0 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| COSTS
AND EXPENSES: |
|
|
|
|
|
|
|
|
| |
Operations |
182.1 |
|
111.3 |
|
|
|
|
|
| |
Depreciation
and amortization |
59.0 |
|
38.1 |
|
|
|
|
|
| |
Selling,
general and administrative |
23.1 |
|
20.8 |
|
|
|
|
|
| |
Gain
on disposals of property and equipment |
(0.1) |
|
- |
|
|
|
|
|
| |
Material
charge and other expenses |
4.6 |
|
- |
|
|
|
|
|
| |
Total |
|
268.7 |
|
170.2 |
|
|
|
|
|
| INCOME
FROM OPERATIONS |
64.8 |
|
35.8 |
|
|
|
|
|
| Net
interest and other income (expense) |
(9.8) |
|
(6.4) |
|
|
|
|
|
| INCOME
BEFORE INCOME TAXES |
55.0 |
|
29.4 |
|
|
|
|
|
| Provision
(credit) for income taxes |
(0.5) |
|
2.6 |
|
|
|
|
|
| NET
INCOME FROM CONTINUING OPERATIONS |
55.5 |
|
26.8 |
|
|
|
|
|
| Discontinued
operations, net of tax |
(6.0) |
|
5.3 |
|
|
|
|
|
| NET
INCOME |
$
49.5 |
|
$
32.1 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
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| PER
SHARE AMOUNTS: |
|
|
|
|
|
|
|
|
| |
Income
from continuing operations |
$
0.45 |
|
$
0.21 |
|
|
|
|
|
| |
Discontinued
operations, net of tax |
$
(0.05) |
|
$
0.04 |
|
|
|
|
|
| |
Net
income |
$
0.40 |
|
$
0.25 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| AVERAGE
DILUTED SHARES |
123.8 |
|
127.2 |
|
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| ROWAN
COMPANIES, INC. |
| CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS |
| Unaudited
(In Millions) |
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THREE
MONTHS |
|
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| |
ENDED
MARCH 31 |
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2012 |
|
2011 |
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| CASH
PROVIDED BY (USED IN): |
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Operations: |
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Net income |
$
49.5 |
|
$
32.1 |
|
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|
|
Adjustments to reconcile net income to net |
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|
cash provided by operations: |
|
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|
|
|
|
|
|
|
|
Depreciation and amortization |
59.0 |
|
49.4 |
|
|
|
|
|
|
|
|
Deferred income taxes |
(0.1) |
|
0.9 |
|
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Gain on disposals of assets |
(0.1) |
|
(2.0) |
|
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Other - net |
(7.7) |
|
(14.9) |
|
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|
Net changes in current assets and liabilities |
(50.5) |
|
42.8 |
|
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|
Net changes in other noncurrent assets and liabilities |
13.1 |
|
5.6 |
|
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|
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Net cash provided by operations |
63.2 |
|
113.9 |
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Investing activities: |
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Property, plant and equipment additions |
(138.1) |
|
(361.1) |
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Proceeds from disposals of property, plant and equipment |
0.9 |
|
2.7 |
|
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|
|
Increase in Restricted cash |
(10.6) |
|
0.4 |
|
|
|
|
|
|
|
|
Net cash used in investing activities |
(147.8) |
|
(358.0) |
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Financing activities: |
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Repayments of borrowings |
(12.3) |
|
(12.3) |
|
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Proceeds from equity compensation plans and other |
0.5 |
|
8.6 |
|
|
|
|
|
|
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|
Net cash used in financing activities |
(11.8) |
|
(3.7) |
|
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| |
|
|
|
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|
| DECREASE
IN CASH AND CASH EQUIVALENTS |
(96.4) |
|
(247.8) |
|
|
|
|
|
|
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| CASH
AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
438.9 |
|
437.5 |
|
|
|
|
|
|
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| CASH
AND CASH EQUIVALENTS, END OF PERIOD |
$
342.5 |
|
$
189.7 |
|
|
|
|
|
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|
| ROWAN
COMPANIES, INC. |
| SUPPLEMENTAL
OPERATING INFORMATION |
| Unaudited |
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
THREE
MONTHS ENDED |
| |
March
31, |
|
December
31, |
|
March
31, |
| |
2012 |
|
2011 |
|
2011 |
| |
|
|
|
|
|
| OFFSHORE
RIG DAYS: |
|
|
|
|
|
| |
Operating |
2,088 |
|
1,810 |
|
1,477 |
| |
Shipyard/transit |
300 |
|
444 |
|
576 |
| |
Stacked
and other downtime |
388 |
|
415 |
|
218 |
| |
|
|
|
|
|
|
| |
Total available |
|
2,776 |
|
2,669 |
|
2,271 |
| |
|
|
|
|
|
|
| |
Utilization |
75% |
|
68% |
|
65% |
| |
|
|
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|
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|
| |
|
|
|
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|
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| AVERAGE
DAY RATES (in thousands): |
|
|
|
|
|
| |
Gulf
of Mexico rigs |
$
118.2 |
|
$
114.2 |
|
$
118.2 |
| |
Middle
East rigs |
145.8 |
|
137.6 |
|
128.7 |
| |
North
Sea rigs |
227.7 |
|
218.6 |
|
182.5 |
| |
All
offshore rigs |
156.5 |
|
149.9 |
|
136.4 |
| |
|
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|
CONTACT:
Suzanne M. Spera, Director of Investor Relations, +1-713-960-7517, sspera@rowancompanies.com
