ATW
$8.80
Atwood Oceanics
$.10
1.15%
Earnings Details
2nd Quarter March 2017
Monday, May 08, 2017 4:52:19 PM
Tweet Share Watch
Summary

Atwood Oceanics (ATW) Recent Earnings

Atwood Oceanics (ATW) reported 2nd Quarter March 2017 earnings of $0.37 per share on revenue of $167.7 million. The consensus estimate was a loss of $0.29 per share on revenue of $124.0 million. Revenue fell 43.4% 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
$0.37
Earnings Whisper
-
Consensus Estimate
($0.29)
Reported Revenue
$167.7 Mil
Revenue Estimate
$124.0 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Atwood Oceanics Announces Fiscal 2017 Second Quarter Earnings

FOR IMMEDIATE RELEASE - EARNINGS

HOUSTON, May 8, 2017 -- Atwood Oceanics, Inc. (ATW) ("Company"), announced today that it had recognized a net loss of $28.9 million or $(0.37) per diluted share, on revenues of $167.7 million for the quarter ended March 31, 2017 compared to net income of $9.7 million or $0.15 per diluted share on revenues of $157.6 million for the quarter ended December 31, 2016 and compared to net income of $122.4 million or $1.89 per diluted share, on revenues of $296.4 million for the quarter ended March 31, 2016. For the six months ended March 31, 2017, the Company recognized a net loss of $19.2 million or $(0.27) per diluted share, on revenues of $325.3 million compared to net income of $161.5 million or $2.49 per diluted share, on revenues of $604.2 million for the six months ended March 31, 2016.

During the three months ended March 31, 2017, we concluded that the Atwood Eagle and its materials and supplies were impaired, and we wrote them down to their approximate salvage value. We recorded a non-cash impairment charge of approximately $59.0 million ($57.6 million, net of tax, or $0.74 per diluted share), which is included in Asset Impairment on the Unaudited Condensed Consolidated Statement of Operations for the three months ended March 31, 2017. This impairment charge includes a write-down of property and equipment and deferred costs of $49.6 million, a write-down of our inventory of materials and supplies that was specific to the Atwood Eagle of $8.4 million, and accrued estimated transaction costs of $1.0 million. On May 5, 2017, we executed a sale and recycling agreement with respect to the Atwood Eagle, pursuant to which the vessel, together with associated equipment and machinery will be sold to a third party to be demolished and recycled.

In January 2017, the client for the Atwood Achiever exercised its option provided as part of the "blend and extend" agreement we entered into in October 2015 to revert the contract to the original operating day rate and original end date. Exercise of this option resulted in a one-time payment to us of $48.1 million that includes the difference in day rates, taxes, and administrative fees covering the time periods for which the reduced day rate was applicable for previously provided drilling services, and is reported as a component of Contract drilling revenue in our Unaudited Condensed Consolidated Statements of Operations for the three and six months ended March 31, 2017

During the three months ended March 31, 2017, we issued, in a public offering, 15,525,000 shares of common stock. The net proceeds from the offering, before deducting estimated offering expenses, were approximately $181 million. The net proceeds are currently held as cash and are expected to be used for general corporate purposes, which may include the repayment of borrowings under the Credit Facility, the funding of future purchases or redemption of our Senior Notes, working capital and capital expenditures, and otherwise to enhance our liquidity.

During the three months ended March 31, 2016, we repurchased, through open market transactions, $13.5 million aggregate principal of our Senior Notes at an aggregate cost of $5.1 million, including a minimal amount of accrued interest, representing an average discount of 62.2%. As a result of the repurchases, we recognized a gain on debt retirement, net of the related debt issuance costs, of $8.4 million (or $0.13 per diluted share) in Gains on extinguishment of debt on the Unaudited Condensed Consolidated Statement of Operations for the three and six months ended March 31, 2016.

For the Three Months Ended
(Unaudited)
(In thousands, except per share amounts) March 31,
December 31,
March 31,
2017
2016
2016
Revenues
$
167,706
$
157,556
$
296,351
Income (Loss) before Income Taxes
(27,316
)
12,064
136,426
Provision for Income Taxes
(1,546
)
(2,393
)
(13,989
)
Net Income (Loss)
$
(28,862
)
$
9,671
$
122,437
Earnings per Common Share -
Basic
$
(0.37
)
$
0.15
$
1.89
Diluted
$
(0.37
)
$
0.15
$
1.89
Six Months Ended
(Unaudited)
(In thousands, except per share amounts)
March 31,
March 31,
2017
2016
Revenues
$
325,262
$
604,170
Income (Loss) before Income Taxes
(15,251
)
186,721
Provision for Income Taxes
(3,940
)
(25,203
)
Net Income (Loss)
$
(19,191
)
$
161,518
Earnings per Common Share -
Basic
$
(0.27
)
$
2.49
Diluted
$
(0.27
)
$
2.49

ATWOOD OCEANICS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended March 31,
Six Months Ended March 31,
(In thousands, except per share amounts)
2017
2016
2017
2016
REVENUES:
Contract drilling
$
162,240
$
282,546
$
312,103
$
577,161
Revenues related to reimbursable expenses
5,466
13,805
13,159
27,009
Total revenues
167,706
296,351
325,262
604,170
COSTS AND EXPENSES:
Contract drilling
64,277
89,918
129,947
220,570
Reimbursable expenses
4,674
9,123
11,276
17,409
Depreciation
41,443
41,053
83,251
83,880
General and administrative
12,445
11,488
27,636
26,665
Asset impairment
58,962
708
58,962
65,432
(Gain) loss on sale of assets
(51
)
77
(118
)
77
Other, net
-
(1,137
)
-
(1,060
)
181,750
151,230
310,954
412,973
OPERATING (LOSS) INCOME
(14,044
)
145,121
14,308
191,197
OTHER (EXPENSE) INCOME:
Interest expense, net of capitalized interest
(13,537
)
(17,098
)
(29,828
)
(30,859
)
Interest income
265
6
269
10
Gains on extinguishment of debt
-
8,397
-
8,397
Other income
-
-
-
17,976
(13,272
)
(8,695
)
(29,559
)
(4,476
)
(LOSS) INCOME BEFORE INCOME TAXES
(27,316
)
136,426
(15,251
)
186,721
PROVISION FOR INCOME TAXES
1,546
13,989
3,940
25,203
NET (LOSS) INCOME
$
(28,862 )
$
122,437
$
(19,191 )
$
161,518
(LOSS) EARNINGS PER COMMON SHARE (NOTE 3):
Basic
$
(0.37
)
$
1.89
$
(0.27
)
$
2.49
Diluted
$
(0.37
)
$
1.89
$
(0.27
)
$
2.49
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (NOTE 3):
Basic
78,270
64,781
71,504
64,739
Diluted
78,270
64,825
71,504
64,870
Dividend declared per share
$
-
$
-
$
-
$
0.075

ATWOOD OCEANICS, INC. AND SUBSIDIARIES

UNAUDITED ANALYSIS OF REVENUES AND DRILLING COSTS

REVENUES
Three Months Ended
Six Months Ended
(In millions)
March 31,
December 31,
March 31,
March 31,
March 31,
2017
2016
2016
2017
2016
Ultra-Deepwater
$
162
$
148
$
189
$
310
$
371
Deepwater
-
-
59
-
131
Jackups
-
2
34
2
75
Reimbursable
6
8
14
13
27
$
168
$
158
$
296
$
325
$
604
DRILLING COSTS
Three Months Ended
Six Months Ended
(In millions)
March 31,
December 31,
March 31,
March 31,
March 31,
2017
2016
2016
2017
2016
Ultra-Deepwater
$
53
$
50
$
54
$
103
$
115
Deepwater
-
-
19
-
62
Jackups
11
14
19
25
45
Reimbursable
5
7
9
11
17
Other
-
1
(2
)
2
(1
)
$
69
$
72
$
99
$
141
$
238

ATWOOD OCEANICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)
March 31,
September 30,
2017
2016
(Unaudited)
ASSETS
Cash
$
435,208
$
145,427
Accounts receivable, net
81,630
113,091
Income tax receivable
2,889
6,095
Inventories of materials and supplies, net
101,721
109,925
Prepaid expenses, deferred costs and other current assets
12,498
18,504
Total current assets
633,946
393,042
Property and equipment, net
4,143,390
4,127,696
Other receivables
11,831
11,831
Deferred income taxes
165
165
Deferred costs and other assets
7,313
7,058
Total assets
$
4,796,645
$
4,539,792
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable
$
23,693
$
25,299
Accrued liabilities
9,747
7,868
Interest payable
8,395
7,096
Income tax payable
8,582
8,294
Deferred credits and other liabilities
1,636
799
Total current liabilities
52,053
49,356
Long-term debt
1,298,067
1,227,919
Deferred income taxes
1,599
1,202
Deferred credits
7,910
-
Other
35,994
30,929
Total long-term liabilities
1,343,570
1,260,050
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 80,516 issued (Note 10) and outstanding as of March 31, 2017 and 180,000 shares authorized and 64,799 shares issued and outstanding as of September 30, 2016 80,516
64,799
Paid-in capital
410,855
237,542
Retained earnings
2,909,684
2,929,839
Accumulated other comprehensive loss
(33
)
(1,794
)
Total shareholders’ equity
3,401,022
3,230,386
Total liabilities and shareholders’ equity
$
4,796,645
$
4,539,792

ATWOOD OCEANICS, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended March 31,
(In thousands)
2017
2016
Cash flows from operating activities:
Net (loss) income
$
(19,191 )
$
161,518
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation
83,251
83,880
Amortization
3,367
1,607
Provision for doubtful accounts
2,369
1,141
Deferred income tax benefit
(525
)
(650
)
Share-based compensation expense
7,566
5,009
Asset impairment
58,962
65,432
(Gain) loss on sale of assets
(118
)
77
(Gain) on extinguishment of debt
-
(8,397
)
Other, net
-
(1,137
)
Changes in assets and liabilities:
Accounts receivable
38,217
62,963
Income tax receivable
3,206
507
Inventories of materials and supplies
(168
)
16,187
Prepaid expenses, deferred costs and other current assets
6,072
14,709
Deferred costs and other assets
(4,201
)
(1,381
)
Accounts payable
3,425
(25,306
)
Accrued liabilities
4,023
(3,760
)
Income tax payable
288
6,534
Deferred credits and other liabilities
6,720
1,220
Net cash provided by operating activities
193,263
380,153
Cash flows from investing activities:
Capital expenditures
(154,448
)
(176,175
)
Proceeds from sale of assets
-
6,681
Net cash used in investing activities
(154,448
)
(169,494
)
Cash flows from financing activities:
Proceeds from issuance of long-term debt
125,000
45,000
Principal payments on long-term debt
(55,000
)
(120,156
)
Dividends paid
-
(21,746
)
Payments related to exercise of stock options
-
(928
)
Proceeds from issuance of common stock
180,966
-
Net cash provided by (used in) financing activities
250,966
(97,830
)
Net increase in cash and cash equivalents
289,781
112,829
Cash and cash equivalents, at beginning of period
145,427
113,983
Cash and cash equivalents, at end of period
$
435,208
$
226,812
Non-cash activities:
(Decrease) increase in accounts payable related to capital expenditures
$
(5,031
)
$
950
Increase in deferred credits not yet collected
$
9,125
$
-

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 two 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 second quarter 2017 results on Tuesday, May 9, 2017, at 9:00 A.M. CDT (10:00 A.M. EDT). Interested parties are invited to listen to the call by dialing 1-800-894-5910, or internationally 1-785-424-1052, Conference ID - Atwood, Password 46829. 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