<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(MARK ONE)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1995
-------------------------------
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE EXCHANGE ACT
FOR THE TRANSITION PERIOD FROM TO
------------- --------------
COMMISSION FILE NUMBER 0-7984
---------------------------------------
TUCKER DRILLING COMPANY, INC.
- --------------------------------------------------------------------------------
(EXACT NAME OF SMALL BUSINESS ISSUER AS SPECIFIED IN ITS CHARTER)
DELAWARE 75-1462136
- --------------------------------------- ------------------------------------
(STATE OR OTHER JURISDICTION OF (IRS EMPLOYER IDENTIFICATION NO.)
INCORPORATION OR ORGANIZATION)
P.O. BOX 1876, 101 THE PETROLEUM BUILDING, SAN ANGELO, TEXAS 76902
- --------------------------------------------------------------------------------
(ADDRESS OF PRINCIPLE EXECUTIVE OFFICES)
(915) 655-6773
- --------------------------------------------------------------------------------
(ISSUER'S TELEPHONE NUMBER)
- --------------------------------------------------------------------------------
(FORMER NAME, FORMER ADDRESS AND FORMER FISCAL YEAR,
IF CHANGED SINCE LAST REPORT)
CHECK WHETHER THE ISSUER (1) FILED ALL REPORTS REQUIRED TO BE FILED BY SECTION
13 OR 15 (D) OF THE EXCHANGE ACT DURING THE PAST 12 MONTHS (OR FOR SUCH SHORTER
PERIOD THAT THE REGISTRANT WAS REQUIRED TO FILE SUCH REPORTS), AND (2) HAS BEEN
SUBJECT TO SUCH FILING REQUIREMENTS FOR THE PAST 90 DAYS.
YES X NO
--------- ---------
APPLICABLE ONLY TO CORPORATE ISSUERS
STATE THE NUMBER OF OUTSTANDING OF EACH OF THE ISSUER'S CLASSES OF COMMON
EQUITY, AS OF THE LATEST PRACTICABLE DATE.
2,075,276 OUTSTANDING AT JUNE 30, 1995
- --------------------------------------------------------------
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
THE FOLLOWING FINANCIAL STATEMENTS INCLUDE ALL ADJUSTMENTS WHICH IN THE
OPINION OF MANAGEMENT ARE NECESSARY IN ORDER TO MAKE SUCH FINANCIAL
STATEMENTS NOT MISLEADING.
TUCKER DRILLING COMPANY, INC.
BALANCE SHEETS
ASSETS
------
<TABLE>
<CAPTION>
JUNE 30, MARCH 31,
------------- ------------
1995 1995
------------- ------------
(UNAUDITED)
<S> <C> <C>
Current Assets:
Cash and cash equivalents.................................... $ 4,675,823 $ 3,475,677
Marketable securities, partially restricted to use.......... 2,570,459 2,570,459
Accounts receivable, net of allowance for doubtful
accounts of $17,757 in June and in March.................. 2,094,773 2,792,795
Insurance refund receivable................................. 767,444 756,946
Equipment inventory......................................... 23,426 25,703
Costs of uncompleted drilling contracts
in excess of related billings............................. 367,217 415,471
Prepaid expenses............................................ 225,759 168,892
----------- -----------
Total current assets.................................... 10,724,901 10,205,943
----------- -----------
Property and Equipment, at cost
Drilling rigs and equipment.................................. 20,843,248 20,505,968
Producing oil and gas properties, based on
successful efforts accounting.............................. 5,120,534 4,944,323
Undeveloped properties, based on successful
efforts accounting......................................... 111,062 338,032
Automotive equipment......................................... 2,177,742 1,987,932
Buildings.................................................... 1,225,594 1,225,594
Office furniture............................................. 515,078 511,814
Land......................................................... 96,622 96,622
Other........................................................ 454,515 439,602
----------- -----------
30,544,395 30,049,887
Less accumulated depreciation, depletion and amortization... 23,575,775 23,305,968
----------- -----------
6,968,620 6,743,919
----------- -----------
Other assets.................................................. 558,830 646,468
----------- -----------
Total assets............................................ $18,252,351 $17,596,330
=========== ===========
</TABLE>
2
<PAGE>
TUCKER DRILLING COMPANY, INC.
BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
<TABLE>
<CAPTION>
JUNE 30, MARCH 31,
------------ -----------
1995 1995
------------ -----------
(UNAUDITED)
<S> <C> <C>
Current Liabilities:
Accounts payable........................................................ $ 1,063,577 $ 1,016,303
Accrued insurance expenses.............................................. 395,938 237,198
Other accrued expenses.................................................. 341,113 307,902
Royalties payable....................................................... 85,403 70,844
Income taxes payable.................................................... 29,384 46,384
Billings on uncompleted drilling contracts in excess of related costs... --- 45,000
----------- -----------
Total current liabilities 1,915,415 1,723,631
----------- -----------
Deferred Compensation Payable............................................ 338,150 324,650
----------- -----------
Commitments and Contingencies
Stockholders' equity:
Preferred stock, $.01 par value
Authorized - 500,000 shares............................................ --- ---
Common stock, $.01 par value
Authorized shares - 5,000,000
Issued and outstanding shares 2,075,276 in June
and 2,072,476 in March............................................... 20,753 20,725
Capital in excess of par value.......................................... 4,816,181 4,799,509
Retained earnings....................................................... 11,161,852 10,727,815
----------- -----------
15,998,786 15,548,049
----------- -----------
Total Liabilities and Stockholders' Equity......................... $18,252,351 $17,596,330
=========== ===========
</TABLE>
3
<PAGE>
TUCKER DRILLING COMPANY, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED JUNE 30,
----------------------------
1995 1994
----------------------------
<S> <C> <C>
Revenues:
Contract drilling............................ $5,249,109 $4,838,638
Oil and gas sales............................ 317,602 241,388
---------- ----------
5,566,711 5,080,026
---------- ----------
Costs and Expenses:
Contract drilling............................ 4,167,867 3,677,426
Oil and gas production and exploration....... 73,572 112,780
Depreciation, depletion and amortization..... 544,983 453,071
Dry holes and abandonments................... 29,761 16,497
General and administrative................... 395,232 391,921
---------- ----------
5,211,415 4,651,695
---------- ----------
Income from operations........................ 355,296 428,331
---------- ----------
Other income (expense):
Net gain on sale of property and equipment... 19,318 314,941
Interest income.............................. 103,558 24,401
Miscellaneous................................ ( 11,135) ( 5,855)
---------- ----------
111,741 333,487
---------- ----------
Income before income taxes.................... 467,037 761,818
Income taxes
Current..................................... 33,000 22,000
Deferred.................................... --- ---
---------- ----------
Net income.................................... $ 434,067 $ 739,818
========== ==========
Net income per common share................... $ .21 $ .36
========== ==========
Weighted average number of common shares
outstanding................................. 2,073,065 2,065,076
========== ==========
</TABLE>
4
<PAGE>
TUCKER DRILLING COMPANY, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED JUNE 30,
---------------------------------
1995 1994
-------------- ----------------
<S> <C> <C>
Cash flows from operating activities
Net income..................................................................... $ 434,067 $ 739,818
Adjustments to reconcile net income to net cash provided by
operating activities
Depreciation, depletion and amortization.................................. 544,983 453,071
Dry holes and abandonments................................................ 29,761 16,497
Net gain on sales of property and equipment............................... ( 19,318) ( 314,941)
Decrease in accounts receivable........................................... 687,524 181,929
(Increase) decrease in equipment inventory................................ 2,277 ( 3,693)
(Increase) decrease in cost of uncompleted drilling contracts in excess of
related billings........................................................ 48,254 ( 197,454)
(Increase) decrease in prepaid expenses................................... ( 56,867) ( 839)
Increase (decease) in payables and accrued expenses....................... ( 12,284) ( 245,650)
Decrease in billings on uncompleted drilling contracts in excess of
related costs........................................................... ( 45,000) 106,889
Increase in deferred compensation payable................................. 13,500 12,000
(Increase) decrease in other assets....................................... 87,638 ( 124,288)
---------- ----------
Net cash provided by operations..................................................... 1,714,535 623,339
---------- ----------
Cash flows from investing activities
Proceeds from the sale of property and equipment............................... 50,502 992,696
Purchases of property and equipment............................................ ( 581,591) ( 306,112)
---------- ----------
Net cash provided by (used in) investing activities............................ ( 531,089) 686,584
---------- ----------
Cash flows from financing activities
Proceeds from the exercise of stock options.................................... 16,700 ---
---------- ----------
Net increase in cash and cash equivalents...................................... 1,200,146 1,309,923
Cash and cash equivalents at beginning of year................................. 3,475,677 2,106,999
---------- ----------
Cash and cash equivalents at end of period..................................... $4,675,823 $3,416,922
========== ==========
</TABLE>
5
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 1995 the Company had cash and cash equivalents in the amount
of $4,676,000, compared to $3,417,000 as of June 30, 1994 and $3,476,000 as of
March 31, 1995. For the three months ended June 30, 1995 compared to the same
period in 1994 cash provided by operations increased to $1,715,000 from
$623,000. Working capital provided by operations increased to $989,000 from
$894,000. Significant changes in cash provided resulted from timing of
collection of accounts receivable and completion of drilling contracts which
Management believes are coincidental and do not represent trends. Investing
activities used $531,000 cash in the 1995 period and provided $687,000 cash in
the 1994 period. Proceeds from the sale of a producing oil and gas field in the
amount of $981,000 were included in the 1994 period.
Management believes that for the remainder of the current fiscal year the
Company's cash requirements will be met by existing cash and any cash provided
by operations.
RESULTS OF OPERATIONS
For the three months ended June 30, 1995 compared to the same period in
1994 contract drilling revenues increased 8% due primarily to an increase in
average rig utilization to 62% from 56%. There was operating income from this
segment of $377,000 in the 1995 period compared to $553,000 for the 1994 period.
Higher maintenance expenses and depreciation contributed to the decrease in
operating income for the 1995 period.
Oil and gas sales increased 32% to $318,000 for the 1995 period compared to
$241,000 for the 1994 period. Average oil production increased 45% to 120
barrels per day and average gas production increased 41% to 917 MCF per day. The
average price of oil increased to $18.53 per barrel in the 1995 period from
$16.18 per barrel and the average price of gas decreased to $1.39 per MCF in the
1995 period from $2.01 per MCF. There was a loss from operations for this
segment of $21,000 for the 1995 period compared to a loss of $117,000 for the
1994 period. Other income for the 1994 period included a $295,000 gain on the
sale of a producing oil and gas field.
PART II. OTHER INFORMATION
ITEM 1. NONE
ITEM 2. NONE
ITEM 3. NONE
ITEM 4. NONE
ITEM 5. NONE
ITEM 6. NONE
6
<PAGE>
SIGNATURES
In accordance with the requirements of the Securities and Exchange Act of
1934, the registrant caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TUCKER DRILLING COMPANY, INC.
(Registrant)
BY: /S/ CHARLES B. MIDDLEKAUF
---------------------------------------------
Charles B. Middlekauf
Executive Vice President (a principal
executive officer) and the Principal
Financial and Accounting Officer
DATED: August 11, 1995
---------------
7
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 4,675,823
<SECURITIES> 2,570,459
<RECEIVABLES> 2,862,217
<ALLOWANCES> 17,757
<INVENTORY> 23,426
<CURRENT-ASSETS> 10,724,901
<PP&E> 30,544,395
<DEPRECIATION> 23,575,775
<TOTAL-ASSETS> 18,252,351
<CURRENT-LIABILITIES> 1,915,415
<BONDS> 0
<COMMON> 20,753
0
0
<OTHER-SE> 15,978,033
<TOTAL-LIABILITY-AND-EQUITY> 18,252,351
<SALES> 5,566,711
<TOTAL-REVENUES> 5,566,711
<CGS> 4,786,422
<TOTAL-COSTS> 5,211,415
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 467,037
<INCOME-TAX> 33,000
<INCOME-CONTINUING> 434,067
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 434,067
<EPS-PRIMARY> .21
<EPS-DILUTED> .21
</TABLE>
