<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 SEPTEMBER 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
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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
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(ADDRESS OF PRINCIPLE EXECUTIVE OFFICES)
(915) 655-6773
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(ISSUER'S TELEPHONE NUMBER)
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(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
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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.
2,092,476 OUTSTANDING AT SEPTEMBER 30, 1995
- --------------------------------------------------------
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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
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<TABLE>
<CAPTION>
SEPTEMBER 30 MARCH 31,
------------ ------------
1995 1995
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(UNAUDITED)
<S> <C> <C>
Current Assets:
Cash and cash equivalents................................... $ 4,677,726 $ 3,475,677
Marketable securities, partially restricted to use......... 3,560,246 2,570,459
Accounts receivable, net of allowance for doubtful
accounts of $17,757 in September and in March............ 2,023,461 2,792,795
Insurance refund receivable................................ --- 756,946
Equipment inventory........................................ 14,582 25,703
Costs of uncompleted drilling contracts
in excess of related billings............................ 48,137 415,471
Prepaid expenses........................................... 315,954 168,892
----------- -----------
Total current assets................................. 10,640,106 10,205,943
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Property and Equipment, at cost
Drilling rigs and equipment................................. 21,260,607 20,505,968
Producing oil and gas properties, based on
successful efforts accounting............................. 5,280,580 4,944,323
Undeveloped properties, based on successful
efforts accounting........................................ 112,327 338,032
Automotive equipment........................................ 2,188,755 1,987,932
Buildings................................................... 1,225,594 1,225,594
Office furniture............................................ 515,078 511,814
Land........................................................ 96,622 96,622
Other....................................................... 452,476 439,602
----------- -----------
31,132,039 30,049,887
Less accumulated depreciation, depletion and amortization.. 24,103,765 23,305,968
----------- -----------
7,028,274 6,743,919
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Other assets................................................. 586,844 646,468
----------- -----------
Total assets................................................ $18,255,224 $17,596,330
=========== ===========
</TABLE>
2
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TUCKER DRILLING COMPANY, INC.
BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
<TABLE>
<CAPTION>
SEPTEMBER 30, MARCH 31,
------------- -----------
1995 1995
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(UNAUDITED)
<S> <C> <C>
Current Liabilities:
Accounts payable....................................................... $ 882,028 $ 1,016,303
Accrued insurance expenses............................................. 523,195 237,198
Other accrued expenses................................................. 108,004 307,902
Royalties payable...................................................... 9,367 70,844
Income taxes payable................................................... 25,383 46,384
Billings on uncompleted drilling contracts in excess of related costs.. --- 45,000
----------- -----------
Total current liabilities 1,547,977 1,723,631
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Deferred Compensation Payable........................................... 351,650 324,650
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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 2,092,476 in September
and 2,072,476 in March.............................................. 20,925 20,725
Capital in excess of par value......................................... 4,915,809 4,799,509
Retained earnings...................................................... 11,418,863 10,727,815
----------- -----------
16,355,597 15,548,049
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Total Liabilities and Stockholders' Equity............................ $18,255,224 $17,596,330
=========== ===========
</TABLE>
3
<PAGE>
TUCKER DRILLING COMPANY, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30,
--------------------------------
1995 1994
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<S> <C> <C>
Revenues:
Contract drilling........................... $4,095,345 $5,771,524
Oil and gas sales........................... 267,238 180,842
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4,362,583 5,952,366
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Costs and Expenses:
Contract drilling........................... 3,206,292 4,427,810
Oil and gas production and exploration...... 81,871 93,417
Depreciation, depletion and amortization.... 546,208 470,693
Dry holes and abandonments.................. (4,913) 49,772
General and administrative.................. 382,198 401,269
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4,211,656 5,442,961
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Income from operations........................ 150,927 509,405
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Other income (expense):
Net gain on sale of property and equipment.. 15,594 22,691
Interest income............................. 105,482 43,663
Miscellaneous............................... 6,008 (23,350)
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127,084 43,004
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Income before income taxes.................... 278,011 552,409
Income taxes.................................. 21,000 37,000
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Net income.................................... $ 257,011 $ 515,409
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Net income per common share................... $ .12 $ .25
========== ==========
Weighted average number of common shares
outstanding.................................. 2,079,950 2,065,076
========== ==========
</TABLE>
4
<PAGE>
TUCKER DRILLING COMPANY, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED SEPTEMBER 30,
-------------------------------
1995 1994
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<S> <C> <C>
Revenues:
Contract drilling........................... $ 9,344,454 $10,610,162
Oil and gas sales........................... 584,840 422,230
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9,929,294 11,032,392
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Costs and Expenses:
Contract drilling........................... 7,374,159 8,105,236
Oil and gas production and exploration...... 155,443 206,197
Depreciation, depletion and amortization.... 1,091,191 923,764
Dry holes and abandonments.................. 24,848 66,269
General and administrative.................. 777,430 793,190
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9,423,071 10,094,656
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Income from operations........................ 506,223 937,736
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Other income (expense):
Net gain on sale of property and equipment.. 34,912 337,632
Interest income............................. 209,040 68,064
Miscellaneous............................... (5,127) (29,205)
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238,825 376,491
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Income before income taxes.................... 745,048 1,314,227
Income taxes.................................. 54,000 59,000
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Net income.................................... $ 691,048 $ 1,255,227
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Net income per common share................... $ .33 $ .61
=========== ===========
Weighted average number of common shares
outstanding.................................... 2,076,526 2,065,076
=========== ===========
</TABLE>
5
<PAGE>
TUCKER DRILLING COMPANY, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED SEPTEMBER 30,
--------------------------------
1995 1994
--------------- ---------------
<S> <C> <C>
Cash flows from operating activities
Net income................................................. $ 691,048 $ 1,255,227
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation, depletion and amortization................ 1,091,191 923,764
Dry holes and abandonments.............................. 24,848 66,269
Net gain on sales of property and equipment........... (34,912) (337,632)
Decrease in accounts receivable......................... 1,526,280 92,289
(Increase) decrease in equipment inventory.............. 11,121 (3,610)
(Increase) decrease in cost of uncompleted drilling
contracts in excess of related billings............... 367,334 (14,660)
Increase in prepaid expenses and other current assets... (147,062) (175,107)
Decease in payables and accrued expenses................ (200,743) (186,801)
Increase in deferred compensation payable............... 27,000 24,000
Decrease in other assets................................ 59,624 216,469
Other................................................... (45,000) 82,736
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Net cash provided by operations............................. 3,370,729 1,942,944
------------ ------------
Cash flows from investing activities
Proceeds from the sales of property and equipment.......... 82,783 1,015,387
Purchases of property and equipment........................ (1,378,176) (977,163)
Purchases of marketable securities (net)................... (989,787) (1,470,187)
------------ ------------
Net cash used in investing activities....................... (2,285,180) (1,431,963)
------------ ------------
Cash flows from financing activities
Proceeds from the exercising of stock options.............. 116,500 ---
------------ ------------
Net increase in cash and cash equivalents.................. 1,202,049 510,981
Cash and cash equivalents at beginning of year............. 3,475,677 2,106,999
------------ ------------
Cash and cash equivalents at end of period................. $ 4,677,726 $ 2,617,980
============ ============
</TABLE>
6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
LIQUIDITY AND CAPITAL RESOURCES
As of September 30, 1995 the Company had cash and cash equivalents in the
amount of $4,678,000 compared to $3,476,000 as of March 31, 1995. For the six
months ended September 30, 1995 compared to the same period in 1994 cash
provided by operations increased to $3,371,000 from $1,943,000. Working capital
provided by operations decreased to $1,772,000 from $1,908,000, but accounts
receivable decreased $1,526,000 in the 1995 period due primarily to a change in
the Company's insurance program while, in 1994, accounts receivable decreased
$92.000. Investing activities used $2,285,000 cash in the 1995 period compared
to $1,432,000 in the 1994 period. The increase in cash used was due primarily to
the inclusion of $981,000 proceeds from the sale of a producing oil and gas
field in the 1994 period.
Management believes that for the remainder of the current fiscal year the
cash requirements to maintain the Company's existing drilling rig fleet and
fulfill existing commitments in its oil and gas operations will be met by
existing cash and any cash provided by operations.
RESULTS OF OPERATIONS
For the six months ended September 30, 1995 compared to the same period in
1994 contract drilling revenues decreased 12% to $9,344,000 from $10,610,000 due
primarily to a decrease in average rig utilization to 55% from 61%. Oil and gas
sales increased 39% to $585,000 from $422,000. Average oil production increased
to 112 barrels per day from 71 barrels per day and average gas production
increased to 926 MCF per day from 622 MCF per day. The average price of oil did
not change significantly and the average price of gas decreased to $1.31 per MCF
from $1.77 per MCF. Other income decreased to $239,000 from $376,000. In the
1994 period the Company sold a producing oil and gas field resulting in a gain
of $295,000. Interest income increased to $209,000 from $68,000 due primarily to
higher cash balances.
For the three months ended September 30, 1995 compared to the same period
in 1994 contract drilling revenues decreased 29% due primarily to a decrease in
average rig utilization to 48% from 66%. Oil and gas sales increased 48% to
$267,000 from $181,000. Average oil production increased to 104 barrels per day
from 59 barrels per day and average gas production increased to 937 MCF per day
from 592 MCF per day. The average price of oil decreased to $16.72 per barrel
from $18.10 per barrel and the average price of gas decreased to $1.24 per MCF
from $1.50 MCF.
PART II. OTHER INFORMATION
ITEM 1. NONE
ITEM 2. NONE
ITEM 3. NONE
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The annual meeting of the stockholders of the Company was held on
August 2, 1995. The following matters were submitted to a vote of
stockholders with the results indicated:
7
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A) ELECTION OF DIRECTORS - TERM FOR EACH DIRECTOR EXPIRES AT THE 1996
ANNUAL MEETING OF STOCKHOLDERS
Name Votes FOR Votes AGAINST
----------------------- --------- -------------
Larry J. Tucker 1,707,006 17,949
T. Mark Tucker 1,707,006 17,949
W. P. Carr, Jr. 1,706,906 18,049
Marcus H. Cheaney 1,706,681 18,274
Bruce L. Fly 1,707,006 17,949
Charles B. Middlekauf 1,707,006 17,949
B) APPOINTMENT OF AUDITORS
A proposal to ratify the selection of Arthur Andersen LLP,
independent certified public accountants, as auditors for the
Company for the fiscal year ending March 31, 1996 was approved by
a vote of 1,719,006 shares in favor, and 4,224 shares against,
with 1,725 shares abstaining.
ITEM 5. NONE
ITEM 6. NONE
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: November 13, 1995
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8
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 4,677,726
<SECURITIES> 3,560,246
<RECEIVABLES> 2,041,218
<ALLOWANCES> 17,757
<INVENTORY> 14,582
<CURRENT-ASSETS> 10,640,106
<PP&E> 31,132,039
<DEPRECIATION> 24,103,765
<TOTAL-ASSETS> 18,255,224
<CURRENT-LIABILITIES> 1,547,977
<BONDS> 0
<COMMON> 20,925
0
0
<OTHER-SE> 16,334,672
<TOTAL-LIABILITY-AND-EQUITY> 18,255,224
<SALES> 9,929,294
<TOTAL-REVENUES> 9,929,294
<CGS> 8,620,793
<TOTAL-COSTS> 9,423,071
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 745,048
<INCOME-TAX> 54,000
<INCOME-CONTINUING> 691,048
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 691,048
<EPS-PRIMARY> .33
<EPS-DILUTED> .33
</TABLE>
