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Last updated on April 16, 2014 at 6:35 EDT

Atwood Oceanics Announces Fourth Quarter Earnings

November 15, 2012

HOUSTON, Nov. 15, 2012 /PRNewswire/ — ATWOOD OCEANICS, INC., announced today that the Company earned net income of $95.5 million or $1.45 per diluted share, on revenues of $252.5 million for the quarter ended September 30, 2012 compared to net income of $51.7 million or $0.79 per diluted share on revenues of $178.6 million for the quarter ended June 30, 2012 and compared to net income of $72.9 million or $1.12 per diluted share, on revenues of $177.6 million for the quarter ended September 30, 2011. For the twelve months ended September 30, 2012, the Company earned net income of $272.2 million or $4.14 per diluted share, on revenues of $787.4 million compared to net income of $271.7 million or $4.15 per diluted share, on revenues of $645.1 million for the twelve months ended September 30, 2011.

Rob Saltiel, President & CEO, commented, “We had an outstanding fourth quarter and full fiscal year, achieving record revenues and net income for our company in both time periods. For the quarter, our rig teams achieved excellent operational and safety performance that yielded strong revenue recognition, while our fleet transformation progressed with the successful delivery and start-up of the Atwood Mako and the successful delivery and mobilization of the Atwood Condor to the Gulf of Mexico. We also secured our first drilling services agreement for the Atwood Advantage, and we committed to build a third ultra-deepwater drillship to join our growing high-specification rig fleet.”

                        FOR THE THREE MONTHS ENDED
                                          (In
                                      thousands)
                  September 30,          June 30,    September 30,
                           2012               2012             2011
                           ----               ----             ----

    Revenues                    $252,525           $178,603         $177,558
    Income before
     Income Taxes       109,891             61,990           83,918
    Provision for
     Income Taxes       (14,365            (10,279          (10,991
    Net Income                   $95,526            $51,711          $72,927
                                 =======            =======          =======

    Earnings per
     Common Share
     -
    Basic                  1.46               0.79             1.13
    Diluted                1.45               0.79             1.12

    Weighted
     Average
     Shares
    Outstanding -
    Basic                65,407             65,362           64,754
    Diluted              65,982             65,823           65,403

                                            ATWOOD OCEANICS, INC. AND SUBSIDIARIES
                                   UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                           (In thousands, except per share amounts)

                               Three months ended September                  Twelve months ended September
                                           30,                                          30,
                             =============================               ==============================
                                  2012                2011                    2012                 2011
                                  ----                ----                    ----                 ----

    REVENUES:
    Contract drilling                    $252,525                         $177,558                         $787,421 $645,076
                                         --------                         --------                         -------- --------

    COSTS AND EXPENSES:
    Contract drilling          102,119              61,815                 347,179              223,565
    Depreciation                24,180              15,606                  70,599               43,597
    General and
     administrative             12,275               9,927                  49,776               44,407
    Other, net                    (680)              4,924                     457                4,847
                                  ----               -----                     ---                -----
                               137,894              92,272                 468,011              316,416
                               -------              ------                 -------              -------
    OPERATING INCOME           114,631              85,286                 319,410              328,660
                               -------              ------                 -------              -------

    OTHER INCOME (EXPENSE)
    Interest expense, net of
     capitalized interest       (4,837)            (1,493)                  (6,460)              (4,530)
    Interest Income                 97                 125                     354                  717
                                   ---                 ---                     ---                  ---
                                (4,740)            (1,368)                  (6,106)              (3,813)
                                ------              ------                  ------               ------
    INCOME  BEFORE INCOME
     TAXES                     109,891              83,918                 313,304              324,847
    PROVISION FOR INCOME
     TAXES                      14,365              10,991                  41,133               53,173
                                ------              ------                  ------               ------
    NET INCOME                            $95,526                          $72,927                         $272,171 $271,674
                                          =======                          =======                         ======== ========

    EARNINGS PER COMMON
     SHARE:
    Basic                         1.46                1.13                    4.17                 4.20
    Diluted                       1.45                1.12                    4.14                 4.15
    AVERAGE COMMON SHARES
     OUTSTANDING:
    Basic                       65,407              64,754                  65,267               64,754
    Diluted                     65,982              65,403                  65,781               65,403

                                                                       ATWOOD OCEANICS, INC. AND SUBSIDIARIES
                                                                       ANALYSIS OF REVENUES AND DRILLING COSTS
                                                                                     (Unaudited)

                                                          REVENUES
                                                        (In millions)
                                                        ------------
                                Three Months Ended                              Twelve Months Ended
                                ------------------                              -------------------
                  September 30,         June 30,         September 30,            September 30,                September 30,
                           2012             2012                  2011                    2012                           2011
                           ----             ----                  ----                    ----                           ----
    Atwood Condor                $36.1                               $       -                          $                   -        $36.1 $      -
    Atwood Osprey                $47.9                                   $45.0                                          $43.5       $172.2    $59.9
    Atwood Eagle           33.4                    31.6                           35.4                                  135.6 139.8
    Atwood Falcon          37.2                    18.3                           35.0                                   99.8 153.4
    Atwood Hunter          51.5                    48.2                           43.3                                  195.0 183.4
    Atwood Aurora          14.9                    14.9                            0.6                                   55.5  29.2
    Atwood Beacon          17.6                    10.8                           11.1                                   51.5  45.1
    Atwood Mako             4.2                       -                              -                                    4.3     -
    Vicksburg               9.2                     8.3                            8.7                                   35.4  34.3
    Other                   0.5                     1.5                              -                                    2.0     -
                            ---                     ---                            ---                                    ---   ---
                                $252.5                                  $178.6                                         $177.6       $787.4   $645.1
                                ======                                  ======                                         ======       ======   ======

                                               CONTRACT DRILLING COSTS
                                                    (In millions)
                                                    ------------
                                Three Months Ended                            Twelve Months Ended
                                ------------------                            -------------------
                  September 30,         June 30,          September 30,        September 30,        September 30,
                           2012             2012                   2011                2012                  2011
                           ----             ----                   ----                ----                  ----
    Atwood Condor                $15.2                                   $2.7                     $             -       $18.9 $      -
    Atwood Osprey                $17.8                                  $16.1                               $14.6       $66.0    $22.9
    Atwood Eagle           14.0                     14.9                       13.1                          61.7 62.5
    Atwood Falcon          15.2                     21.0                        6.5                          56.6 29.4
    Atwood Hunter          12.8                     11.7                       13.0                          50.4 39.0
    Atwood Aurora           6.4                      7.4                        3.9                          31.0 18.5
    Atwood Beacon          11.1                      7.6                        5.1                          34.6 28.7
    Atwood Mako             3.0                        -                          -                           3.0    -
    Vicksburg               5.6                      4.8                        4.5                          20.8 16.4
    Other                   1.0                      1.2                        1.1                           4.2  6.2
                            ---                      ---                        ---                           ---  ---
                                $102.1                                  $87.4                               $61.8      $347.2   $223.6
                                ======                                  =====                               =====      ======   ======

                       ATWOOD OCEANICS, INC. AND SUBSIDIARIES
                   UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (In thousands)

                                       September 30,               September 30,
                                                2012                        2011
                                                ----                        ----
    ASSETS
    CURRENT
     ASSETS:
    Cash and cash
     equivalents                                          $77,871                   $295,002
    Accounts
     receivable                              167,186                      87,173
    Income tax
     receivable                                5,750                       5,631
    Inventories of
     materials and
     supplies                                 80,290                      58,263
    Prepaid
     expenses and
     deferred
     costs                                    39,437                      14,862
                                              ------                      ------
    Total current
     assets                                  370,534                     460,931
                                             -------                     -------
    PROPERTY AND
     EQUIPMENT,
     net                                   2,537,340                   1,887,321
    LONG TERM
     ASSETS:
    Other
     receivables                              11,875                      11,875
    Deferred costs
     and other
     assets                                   24,013                      15,264
                                              ------                      ------
    Total long-
     term assets                              35,888                      27,139
    Total assets                                       $2,943,762                 $2,375,391
                                                       ==========                 ==========
    LIABILITIES
     AND
     SHAREHOLDERS'
     EQUITY
    CURRENT
     LIABILITIES:
    Accounts
     payable                                              $83,592                   $113,021
    Accrued
     liabilities                              24,478                      30,680
    Notes payable                              5,148                       5,461
    Income tax
     payable                                   9,711                       8,461
    Deferred
     credits                                  13,738                       1,700
                                              ------                       -----
    Total current
     liabilities                             136,667                     159,323
                                             -------                     -------
    LONG TERM
     LIABILITIES:
    Long-term debt                           830,000                     520,000
    Deferred
     income taxes                              8,791                       9,780
    Deferred
     credits                                   8,928                       7,910
    Other                                     19,954                      25,591
                                              ------                      ------
    Total long-
     term
     liabilities                             867,673                     563,281
                                             -------                     -------
    COMMITMENTS
     AND
     CONTINGENCIES
    SHAREHOLDERS'
     EQUITY:
    Preferred
     stock, no par
     value;
    1,000 shares
     authorized,
     none
     outstanding                                   -                           -
    Common Stock,
     $1.00 par
     value;
    90,000 shares
     authorized
     with 65,452
     and 64,960
     issued and
     outstanding
     at September
     30, 2012 and
     2011,
     respectively                             65,452                      64,960
    Paid-in
     capital                                 160,540                     145,084
    Retained
     earnings                              1,716,441                   1,444,270
    Accumulated
     other
     comprehensive
     loss                                     (3,011)                     (1,527)
                                              ------                      ------
    Total
     shareholders'
     equity                                1,939,422                   1,652,787
    Total
     liabilities
     and
     shareholders'
     equity                                            $2,943,762                 $2,375,391
                                                       ==========                 ==========

                                                 Atwood Oceanics, Inc. and Subsidiaries
                                                  CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                                       Years Ended September 30,
                                                                       -------------------------
    (In thousands)                                                 2012                   2011        2010
    -------------                                                  ----                   ----        ----
    Cash flows from operating activities:
    Net income                                                             $272,171               $271,674  $256,996
    Adjustments to reconcile net income to net
     cash provided by operating activities:
    Depreciation                                                 70,599                 43,597      37,030
    Amortization of debt issuance costs                           3,625                  2,363         803
    Amortization of deferred items                               (4,337)                 3,333      13,755
    Provision for doubtful accounts                                   -                      -         (65)
    Provision for inventory obsolescence                            765                    735       1,123
    Deferred income tax (benefit) expense                          (989)                (1,065)      4,798
    Share-based compensation expense                             10,402                  6,314       9,998
    Other, net                                                      457                  4,847      (1,855)
    Change in assets and liabilities:
    (Increase) decrease in accounts receivable                  (80,013)                13,214      26,187
    Decrease in insurance receivable                                  -                      -         281
    (Increase) decrease in income tax receivable                   (119)                10,421      (7,746)
    Increase in inventory                                       (23,395)                (6,249)     (3,736)
    (Increase) decrease in prepaid expenses                      (6,386)                   845        (179)
    Increase in deferred costs and other assets                 (32,597)               (10,379)    (10,321)
    Increase (decrease) in accounts payable                      27,536                 (1,173)      4,735
    Increase (decrease) in accrued liabilities                   (7,096)                 4,440        (854)
    Increase (decrease) in income tax payable                     1,250                (17,906)     (2,700)
    Increase (decrease) in deferred credits and
     other liabilities                                           23,730                 14,777     (21,850
                                                                 ------                 ------     -------
                                                                (16,568)                68,114      49,404
                                                                -------                 ------      ------
    Net Cash Provided by Operating Activities                   255,603                339,788     306,400
                                                                -------                -------     -------
    Cash flows from investing activities:
    Capital expenditures                                       (785,083)             (514,858)   (187,094)
    Collection of insurance receivable                                -                      -       3,607
    Proceeds from sale of assets                                  7,646                    218       1,504
                                                                  -----                    ---       -----
    Net Cash Used by Investing Activities                      (777,437)             (514,640)   (181,983)
                                                               --------               --------    --------
    Cash flows from financing activities:
    Proceeds from issuance of bonds                             450,000                      -           -
    Principal payments on bank credit facilities               (450,000)               (55,000)    (45,000)
    Proceeds from bank credit facilities                        310,000                345,000           -
    Principal payments on notes payable                          (5,461)                (3,631)          -
    Proceeds from notes payable                                   5,148                  9,092           -
    Debt issuance costs paid                                    (10,530)               (12,322)          -
    Proceeds from exercise of stock options                       5,546                  6,192         847
                                                                  -----                  -----         ---
    Net Cash Provided (Used) by Financing
     Activities                                                 304,703                289,331     (44,153)
                                                                -------                -------     -------
    Net increase (decrease) in cash and cash
     equivalents                                                          $(217,131)              $114,479   $80,264
                                                                          ---------               --------   -------
    Cash and cash equivalents, at beginning of
     period                                                                $295,002               $180,523  $100,259
                                                                           --------               --------  --------
    Cash and cash equivalents, at end of period                             $77,871               $295,002  $180,523
                                                                            =======               ========  ========

Atwood Oceanics, Inc. is a global offshore drilling contractor engaged in the drilling and completion of exploratory and developmental oil and gas wells. The company currently owns 12 mobile offshore drilling units and is constructing three ultra-deepwater drillships and one high-specification jackups. 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.”

SOURCE Atwood Oceanics, Inc.


Source: PR Newswire