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Atwood Oceanics Announces 2016 Fourth Quarter and Fiscal Year End Earnings
FOR IMMEDIATE RELEASE - EARNINGS HOUSTON, November 11, 2016 - Atwood Oceanics, Inc. (NYSE: ATW) ("Company"), announced today that it had earned net income of $4.2 million or $0.07 per diluted share, on revenues of $188.7 million for the quarter ended September 30, 2016, compared to net income of $99.5 million or $1.53 per diluted share on revenues of $227.8 million for the quarter ended June 30, 2016 and compared to net income of $150.7 million or $2.32 per diluted share, on revenues of $363.2 million for the quarter ended September 30, 2015. During the three months ended September 30, 2016, the Company: -
Recorded a non-cash impairment charge of $38.6 million ($38.6 million, net of tax, or $0.60 per diluted share) in Asset Impairment related to our fleet wide drilling equipment -
Recorded a non-cash charge of $3.9 million ($3.9 million, net of tax, or $0.06 per diluted share) in Drilling Costs to increase our reserve for excessive and/or obsolete materials and supplies, and -
Recognized a gain on the purchase of debt of $10.2 million ($6.6 million, net of tax, or $0.10 per diluted share) in Gains on Extinguishment of Debt related to consummation of our modified "Dutch Auction" on July 25, 2016 whereby we acquired $42.0 million aggregate principal amount of the Senior Notes. For the twelve months ended September 30, 2016, the Company earned net income of $265.3 million or $4.09 per diluted share, on revenues of $1.0 billion compared to net income of $432.6 million or $6.65 per diluted share, on revenues of $1.4 billion for the twelve months ended September 30, 2015. During the twelve months ended September 30, 2016, the Company: -
Recorded a non-cash impairment charge of $38.6 million ($38.6 million, net of tax, or $0.60 per diluted share) in Asset Impairment related to our fleet wide drilling equipment -
Recorded a non-cash charge of $3.9 million ($3.9 million, net of tax, or $0.06 per diluted share) in Drilling Costs to increase our reserve for excessive and/or obsolete materials and supplies, -
Recognized a gain of the extinguishment of debt of $69.0 million ($54.7 million, net of tax, or $0.84 per diluted share) related to the purchase of $201.4 million of the Senior Notes, -
Recognized other income of $18.0 million ($18.0 million, net of tax, or $0.28 per diluted share) for expected insurance recoveries related to cyclone damage to the Atwood Osprey, and -
Recorded a non-cash impairment charge of $64.9 million ($64.9 million, net of tax, or $1.00 per diluted share) in Asset Impairment related to the Atwood Falcon, which was sold to a 3rd party buyer in April 2016. During the twelve months ended September 30, 2015, the Company: -
Recorded a non-cash impairment charge of approximately $60.8 million ($56.1 million, net of tax, or $0.86 per diluted share) related to the Atwood Hunter, -
Recorded a loss of approximately $5.5 million ($5.5 million, net of tax, or $0.08 per diluted share) for the sale of the Atwood Hunter, and -
Recorded a loss of approximately $8.0 million ($7.1 million, net of tax, or $0.11 per diluted share) for the sale of the Atwood Southern Cross.
| For the Three Months Ended | | | (Unaudited) | | (In thousands, except per share amounts) | September 30,
2016 | | June 30,
2016 | | September 30,
2015 | | Revenues | $ | 188,677 | | | $ | 227,797 | | | $ | 363,176 | | | | | | | | | | Income before Income Taxes | 5,918 | | | 120,116 | | | 166,115 | | | Provision for Income Taxes | 1,669 | | | 20,611 | | | 15,421 | | | Net Income | $ | 4,249 | | | $ | 99,505 | | | $ | 150,694 | | | | | | | | | | Earnings per Common Share - | | | | | | | Basic | $ | 0.07 | | | $ | 1.54 | | | $ | 2.33 | | | Diluted | $ | 0.07 | | | $ | 1.53 | | | $ | 2.32 | |
| | | | For the Twelve Months Ended | | (In thousands, except per share amounts) | | | September 30,
2016 | | September 30,
2015 | | | | | (Unaudited) | | | | Revenues | | | $ | 1,020,644 | | | $ | 1,395,851 | | | | | | | | | | Income before Income Taxes | | | 312,755 | | | 478,970 | | | Provision for Income Taxes | | | (47,483 | ) | | (46,397 | ) | | Net Income | | | $ | 265,272 | | | $ | 432,573 | | | | | | | | | | Earnings per Common Share - | | | | | | | Basic | | | $ | 4.09 | | | $ | 6.70 | | | Diluted | | | $ | 4.09 | | | $ | 6.65 | |
ATWOOD OCEANICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS | | Three Months Ended September 30, | | Twelve Months Ended September 30, | | (In thousands, except per share amounts) | 2016 | | 2015 | | 2016 | | 2015 | | | (Unaudited) | | (Unaudited) | | | | REVENUES: | | | | | | | | | Contract drilling | $ | 181,369 | | | $ | 349,139 | | | $ | 976,348 | | | $ | 1,342,052 | | | Revenues related to reimbursable expenses | 7,308 | | | 14,037 | | | 44,296 | | | 53,799 | | | Total revenues | 188,677 | | | 363,176 | | | 1,020,644 | | | 1,395,851 | | | | | | | | | | | | COSTS AND EXPENSES: | | | | | | | | | Contract drilling | 77,441 | | | 118,574 | | | 378,535 | | | 520,421 | | | Reimbursable expenses | 5,393 | | | 9,110 | | | 28,291 | | | 38,744 | | | Depreciation | 40,706 | | | 42,310 | | | 165,669 | | | 171,947 | | | General and administrative | 11,857 | | | 14,610 | | | 50,550 | | | 57,229 | | | Asset impairment | 38,651 | | | - | | | 103,539 | | | 60,777 | | | (Gain)/loss on sale of assets | - | | | (59 | ) | | 77 | | | 15,303 | | | Other, net | 859 | | | - | | | (299 | ) | | - | | | | 174,907 | | | 184,545 | | | 726,362 | | | 864,421 | | | | | | | | | | | | OPERATING INCOME | 13,770 | | | 178,631 | | | 294,282 | | | 531,430 | | | | | | | | | | | | OTHER INCOME (EXPENSE): | | | | | | | | | Interest expense, net of capitalized interest | (18,032 | ) | | (12,523 | ) | | (68,566 | ) | | (52,551 | ) | | Interest income | 2 | | | 7 | | | 21 | | | 91 | | | Gains on extinguishment of debt | 10,178 | | | - | | | 69,041 | | | - | | | Other income | - | | | - | | | 17,977 | | | - | | | | (7,852 | ) | | (12,516 | ) | | 18,473 | | | (52,460 | ) | | | | | | | | | | | INCOME BEFORE INCOME TAXES | 5,918 | | | 166,115 | | | 312,755 | | | 478,970 | | | PROVISION FOR INCOME TAXES | 1,669 | | | 15,421 | | | 47,483 | | | 46,397 | | | NET INCOME | $ | 4,249 | | | $ | 150,694 | | | $ | 265,272 | | | $ | 432,573 | | | | | | | | | | | | EARNINGS PER COMMON SHARE (NOTE 2): | | | | | | | | | Basic | $ | 0.07 | | | $ | 2.33 | | | $ | 4.09 | | | $ | 6.70 | | | Diluted | $ | 0.07 | | | $ | 2.32 | | | $ | 4.09 | | | $ | 6.65 | | | WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (NOTE 2): | | | | | | | | | Basic | 64,827 | | | 64,654 | | | 64,789 | | | 64,581 | | | Diluted | 64,955 | | | 64,932 | | | 64,839 | | | 65,030 | |
ATWOOD OCEANICS, INC. AND SUBSIDIARIES
UNAUDITED ANALYSIS OF REVENUES AND DRILLING COSTS | | REVENUES | | | Three Months Ended | | Twelve Months Ended | | (In millions) | September 30,
2016 | | June 30,
2016 | | September 30,
2015 | | September 30,
2016 | | September 30,
2015 | | Ultra-Deepwater | $ | 154 | | | $ | 182 | | | $ | 198 | | | $ | 708 | | | $ | 721 | | | Deepwater | - | | | - | | | 78 | | | 131 | | | 336 | | | Jackups | 27 | | | 36 | | | 73 | | | 138 | | | 285 | | | Reimbursable | 7 | | | 10 | | | 14 | | | 44 | | | 54 | | | | 188 | | | 228 | | | 363 | | | 1,021 | | | 1,396 | |
| | DRILLING COSTS | | | Three Months Ended | | Twelve Months Ended | | (In millions) | September 30,
2016 | | June 30,
2016 | | September 30,
2015 | | September 30,
2016 | | September 30,
2015 | | Ultra-Deepwater | $ | 58 | | | $ | 54 | | | $ | 60 | | | $ | 225 | | | $ | 264 | | | Deepwater | 2 | | | 10 | | | 24 | | | 73 | | | 127 | | | Jackups | 17 | | | 16 | | | 34 | | | 79 | | | 126 | | | Reimbursable | 5 | | | 5 | | | 9 | | | 28 | | | 39 | | | Other | - | | | 1 | | | - | | | 2 | | | 3 | | | | $ | 82 | | | $ | 86 | | | $ | 127 | | | $ | 407 | | | $ | 559 | |
ATWOOD OCEANICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS | (In thousands, except par value) | September 30,
2016 | | September 30,
2015 | | | (Unaudited) | | | | ASSETS | | | | | Cash | $ | 145,427 | | | $ | 113,983 | | | Accounts receivable, net | 113,091 | | | 311,514 | | | Income tax receivable | 6,095 | | | 8,705 | | | Inventories of materials and supplies, net | 109,925 | | | 137,998 | | | Prepaid expenses, deferred costs and other current assets | 18,504 | | | 33,735 | | | Total current assets | 393,042 | | | 605,935 | | | | | | | | Property and equipment, net | 4,127,696 | | | 4,172,132 | | | | | | | | Other receivables | 11,831 | | | 11,831 | | | Deferred income taxes | 165 | | | 150 | | | Deferred costs and other assets | 7,058 | | | 11,285 | | | Total assets | $ | 4,539,792 | | | $ | 4,801,333 | | | | | | | | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | Accounts payable | $ | 25,299 | | | $ | 70,161 | | | Accrued liabilities | 7,868 | | | 23,572 | | | Dividends payable | - | | | 16,164 | | | Interest payable | 7,096 | | | 7,704 | | | Income tax payable | 8,294 | | | 13,906 | | | Deferred credits and other liabilities | 799 | | | 3,941 | | | Total current liabilities | 49,356 | | | 135,448 | | | | | | | | Long-term debt | 1,227,919 | | | 1,678,268 | | | Deferred income taxes | 1,202 | | | 1,658 | | | Deferred credits | - | | | 800 | | | Other | 30,929 | | | 37,989 | | | Total long-term liabilities | 1,260,050 | | | 1,718,715 | | | | | | | | Commitments and contingencies (Note 9) | | | | | | | | | | Preferred stock, no par value, 1,000 shares authorized, none outstanding | - | | | - | | | Common stock, $1.00 par value, 180,000 shares authorized with 64,799 issued and outstanding at September 30, 2016 and 180,000 shares authorized and 64,654 shares issued and outstanding at September 30, 2015 | 64,799 | | | 64,654 | | | Paid-in capital | 237,542 | | | 213,096 | | | Retained earnings | 2,929,839 | | | 2,670,148 | | | Accumulated other comprehensive loss | (1,794 | ) | | (728 | ) | | Total shareholders' equity | 3,230,386 | | | 2,947,170 | | | Total liabilities and shareholders' equity | $ | 4,539,792 | | | $ | 4,801,333 | |
ATWOOD OCEANICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS | | Twelve Months Ended September 30, | | (In thousands) | 2016 | | 2015 | | | (Unaudited) | | | | Cash flows from operating activities: | | | | | Net income | $ | 265,272 | | | $ | 432,573 | | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | Depreciation | 165,669 | | | 171,947 | | | Amortization | 3,446 | | | 6,299 | | | Provision for doubtful accounts and inventory obsolescence | 9,501 | | | 4,286 | | | Deferred income tax benefit | 1,632 | | | (2,747 | ) | | Share-based compensation expense | 11,862 | | | 12,828 | | | Asset impairment | 103,539 | | | 60,777 | | | (Gain) loss on sale of assets | (222 | ) | | 15,303 | | | (Gain) on extinguishment of debt | (69,041 | ) | | - | | | Change in assets and liabilities: | | | | | Accounts receivable | 176,614 | | | (72,575 | ) | | Income tax receivable | 2,610 | | | (2,445 | ) | | Inventories of materials and supplies | 12,385 | | | (19,068 | ) | | Prepaid expenses, deferred costs and other current assets | 7,498 | | | (3,655 | ) | | Deferred costs and other assets | (608 | ) | | 5,917 | | | Accounts payable | (36,227 | ) | | (11,967 | ) | | Accrued liabilities | (16,298 | ) | | 1,637 | | | Income tax payable | (5,612 | ) | | (328 | ) | | Deferred credits and other liabilities | (7,012 | ) | | 5,505 | | | Net cash provided by operating activities | 625,008 | | | 604,287 | | | Cash flows from investing activities: | | | | | Capital expenditures | (223,731 | ) | | (448,019 | ) | | Net proceeds from sale of assets | 20,792 | | | (4,402 | ) | | Net cash used in investing activities | (202,939 | ) | | (452,421 | ) | | Cash flows from financing activities: | | | | | Proceeds from borrowing of long-term debt | 45,000 | | | 225,000 | | | Principal repayments on long-term debt | (426,623 | ) | | (280,000 | ) | | Repayments on short-term debt, net | - | | | (11,885 | ) | | Dividends paid | (21,745 | ) | | (48,562 | ) | | Proceeds from exercise of stock options | - | | | 1,064 | | | Debt issuance costs paid | (451 | ) | | (3,580 | ) | | Windfall tax benefits from share-based payment arrangements | 13,194 | | | - | | | Net cash (used in) or provided by financing activities | (390,625 | ) | | (117,963 | ) | | Net increase (decrease) in cash and cash equivalents | 31,444 | | | 33,903 | | | Cash at beginning of period | 113,983 | | | 80,080 | | | Cash at end of period | $ | 145,427 | | | $ | 113,983 | | | Cash paid during the period for: | | | | | Domestic and foreign income taxes | $ | 35,653 | | | $ | 50,428 | | | Interest, net of amounts capitalized | $ | 67,958 | | | $ | 48,209 | | | Non-cash activities: | | | | | Decrease in accounts payables related to capital expenditures | $ | (8,028 | ) | | $ | (9,532 | ) | | Dividends payable | $ | - | | | $ | 16,164 | |
Atwood Oceanics, Inc. is a leading offshore drilling company engaged in the drilling and completion of exploration and development wells for the global oil and gas industry. The Company currently owns 10 mobile offshore drilling units and is constructing 2 ultra-deepwater drillships. 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." For more information about the Company, please visit www.atwd.com. Conference Call The Company has scheduled a conference call and webcast related to its fourth quarter 2016 results on Monday, November 14, 2016, at 9:00 A.M. CDT (10:00 A.M. EDT). Interested parties are invited to listen to the call by dialing 1-800-895-1085, or internationally 1-785-424-1055, Conference ID - Atwood, Password 24864. Interested parties may also listen over the Internet through a link posted in the Investor Relations section of the Company's Web site. A replay of the conference call will be available on the Company's Web site following the end of the live call. Contact: Mark W. Smith
Senior Vice President and Chief Financial Officer
(281) 749-7840
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Atwood Oceanics, Inc. via Globenewswire
Source: Thomson Reuters ONE
(November 11, 2016 - 4:38 PM EST)
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