ATW
$10.50
Atwood Oceanics
$.50
5.00%
Earnings Details
Quarter September 2016
Friday, November 11, 2016 4:45:56 PM
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Summary

Atwood Oceanics (ATW) Recent Earnings

Atwood Oceanics (ATW) reported Quarter September 2016 earnings of $0.63 per share on revenue of $188.7 million. The consensus earnings estimate was $0.58 per share on revenue of $192.2 million. Revenue fell 48.0% compared to the same quarter a year ago.

Atwood Oceanics Inc is an offshore drilling contractor, engaged in drilling and completion of exploratory and developmental oil and gas wells.

Results
Reported Earnings
$0.63
Earnings Whisper
-
Consensus Estimate
$0.58
Reported Revenue
$188.7 Mil
Revenue Estimate
$192.2 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Atwood Oceanics Announces 2016 Fourth Quarter and Fiscal Year End Earnings

FOR IMMEDIATE RELEASE - EARNINGS

HOUSTON, November 11, 2016 - Atwood Oceanics, Inc. (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,
June 30,
September 30,
2016
2016
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,
September 30,
2016
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,
June 30,
September 30,
September 30,
September 30,
2016
2016
2015
2016
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,
June 30,
September 30,
September 30,
September 30,
2016
2016
2015
2016
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,
September 30,
2016
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