<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 DECEMBER 31, 1995
---------------------
TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE EXCHANGE ACT
- ---
FOR THE TRANSITION PERIOD FROM TO
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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
- --------------------------------------------------------------------------------
(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
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APPLICABLE ONLY TO CORPORATE ISSUERS
STATE THE NUMBER OF OUTSTANDING SHARES OF EACH OF THE ISSUER'S CLASSES OF
COMMON EQUITY, AS OF THE LATEST PRACTICABLE DATE.
2,092,476 OUTSTANDING AT DECEMBER 31, 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>
DECEMBER 31, MARCH 31,
------------- ------------
1995 1995
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(UNAUDITED)
<S> <C> <C>
Current Assets:
Cash and cash equivalents................................... $ 4,741,885 $ 3,475,677
Marketable securities, partially restricted as to use...... 2,470,885 2,570,459
Accounts receivable, net of allowance for doubtful
accounts of $17,757 in December and in March.............. 2,550,016 2,792,795
Insurance refund receivable................................ --- 756,946
Equipment inventory........................................ 15,342 25,703
Costs of uncompleted drilling contracts
in excess of related billings............................. 102,361 415,471
Prepaid expenses........................................... 274,735 168,892
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Total current assets..................................... 10,155,224 10,205,943
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Property and Equipment, at cost
Drilling rigs and equipment................................. 22,254,001 20,505,968
Producing oil and gas properties, based on
successful efforts accounting............................. 5,490,919 4,944,323
Undeveloped properties, based on successful
efforts accounting........................................ 357,985 338,032
Automotive equipment........................................ 2,343,798 1,987,932
Buildings................................................... 1,232,001 1,225,594
Office furniture............................................ 520,411 511,814
Land........................................................ 96,622 96,622
Other....................................................... 481,942 439,602
----------- -----------
32,777,679 30,049,887
Less accumulated depreciation, depletion and amortization.. 24,658,784 23,305,968
----------- -----------
8,118,895 6,743,919
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Other assets................................................. 552,462 646,468
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Total assets............................................. $18,826,581 $17,596,330
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</TABLE>
2
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TUCKER DRILLING COMPANY, INC.
BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
<TABLE>
<CAPTION>
DECEMBER 31, MARCH 31,
------------ -----------
1995 1995
------------ -----------
(UNAUDITED)
<S> <C> <C>
Current Liabilities:
Accounts payable....................................................... $ 1,293,465 $ 1,016,303
Accrued insurance expenses............................................. 370,256 237,198
Other accrued expenses................................................. 164,920 307,902
Royalties payable...................................................... 8,398 70,844
Income taxes payable................................................... 12,884 46,384
Billings on uncompleted drilling contracts in excess of related costs.. 225,578 45,000
----------- -----------
Total current liabilities 2,075,501 1,723,631
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Deferred Compensation Payable........................................... 365,150 324,650
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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 December
and 2,072,476 in March............................................... 20,925 20,725
Capital in excess of par value......................................... 4,915,809 4,799,509
Retained earnings...................................................... 11,449,196 10,727,815
----------- -----------
16,385,930 15,548,049
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Total Liabilities and Stockholders' Equity.......................... $18,826,581 $17,596,330
=========== ===========
</TABLE>
3
<PAGE>
TUCKER DRILLING COMPANY, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED DECEMBER 31,
--------------------------------
1995 1994
-------------- --------------
<S> <C> <C>
Revenues:
Contract drilling.................................... $3,824,046 $6,481,156
Oil and gas sales.................................... 324,408 170,225
---------- ----------
4,148,454 6,651,381
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Costs and Expenses:
Contract drilling.................................... 3,202,124 4,964,445
Oil and gas production and exploration............... 85,278 20,908
Depreciation, depletion and amortization............. 555,019 499,101
Dry holes and abandonments........................... --- 51,759
General and administrative........................... 392,890 431,746
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4,235,311 5,967,959
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Income (loss) from operations.......................... ( 86,857) 683,422
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Other income (expense):
Net gain on sale of property and equipment........... 5,087 16,568
Interest income...................................... 104,456 69,536
Miscellaneous........................................ 7,647 ( 8,836)
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117,190 77,268
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Income before income taxes............................. 30,333 760,690
Income taxes........................................... --- ---
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Net income............................................. $ 30,333 $ 760,690
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Net income per common share............................ $.01 $.37
========== ==========
Weighted average number of common shares outstanding.. 2,092,476 2,065,076
========== ==========
</TABLE>
4
<PAGE>
TUCKER DRILLING COMPANY, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED DECEMBER 31,
--------------------------------
1995 1994
-------------- --------------
<S> <C> <C>
Revenues:
Contract drilling........................... $13,168,500 $17,091,318
Oil and gas sales........................... 909,248 592,455
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14,077,748 17,683,773
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Costs and Expenses:
Contract drilling........................... 10,576,283 13,069,681
Oil and gas production and exploration...... 240,721 227,105
Depreciation, depletion and amortization.... 1,646,210 1,422,865
Dry holes and abandonments.................. 24,848 118,028
General and administrative.................. 1,170,320 1,224,936
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13,658,382 16,062,615
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Income from operations........................ 419,366 1,621,158
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Other income (expense):
Net gain on sale of property and equipment.. 39,999 354,200
Interest income............................. 313,496 137,600
Miscellaneous............................... 2,520 ( 38,041)
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356,015 453,759
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Income before income taxes.................... 775,381 2,074,917
Income taxes.................................. 54,000 59,000
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Net income.................................... $ 721,381 $ 2,015,917
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Net income per common share................... $.35 $.98
=========== ===========
Weighted average number of common shares
outstanding.................................. 2,081,862 2,065,076
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</TABLE>
5
<PAGE>
TUCKER DRILLING COMPANY, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED DECEMBER 31,
----------------------------------
1995 1994
------------ -------------
<S> <C> <C>
Cash flows from operating activities
Net income........................................................... $ 721,381 $ 2,015,917
Adjustments to reconcile net income to net cash provided by
operating activities
Depreciation, depletion and amortization........................... 1,646,210 1,422,865
Dry holes and abandonments......................................... 24,848 118,028
Net gain on sales of property and equipment........................ ( 39,999) ( 354,200)
Decrease (increase) in accounts receivable......................... 999,725 ( 249,731)
Decrease in equipment inventory.................................... 10,361 6,284
Decrease in cost of uncompleted drilling contracts in excess of
related billings.................................................. 313,110 6,677
Increase in prepaid expenses....................................... ( 105,843) ( 76,257)
Decrease in payables and accrued expenses.......................... ( 172,736) ( 177,793)
Increase in billings on uncompleted drilling contracts in excess of
related costs..................................................... 180,578 ---
Increase in deferred compensation payable.......................... 40,500 36,000
Decrease in other assets........................................... 94,006 182,434
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Net cash provided by operations...................................... 3,712,141 2,930,224
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Cash flows from investing activities
Proceeds from the sales of property and equipment.................... 79,693 1,076,247
Purchases of property and equipment.................................. ( 2,741,700) ( 1,511,240)
Net maturities (purchases) of investment securities.................. 99,574 ( 580,967)
------------ ------------
Net cash used in investing activities................................ ( 2,562,433) ( 1,015,960)
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Cash flows from financing activities
Proceeds from the exercising of stock options........................ 116,500 ---
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Net increase in cash and cash equivalents........................... 1,266,208 1,914,264
Cash and cash equivalents at beginning of year...................... 3,475,677 2,106,999
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Cash and cash equivalents at end of period.......................... $ 4,741,885 $ 4,021,263
============ ============
</TABLE>
6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
LIQUIDITY AND CAPITAL RESOURCES
As of December 31, 1995 the Company had cash and cash equivalents
in the amount of $4,742,000 compared to $3,476,000 as of March 31, 1995.
For the nine months ended December 31, 1995 compared to the same period in
1994, cash provided by operations increased to $3,712,000 from $2,930,000.
Working capital provided by operations decreased to $2,352,000 from
$3,202,000 as discussed further in RESULTS OF OPERATIONS, but accounts
receivable decreased $1,000,000 in the 1995 period due primarily to a
change in the Company's insurance program compared to an increase in the
amount of $250,000 in the 1994 period. Cash used in investing activities
was $2,562,000 in the 1995 period compared to $1,016,000 in the 1994
period. In the 1995 period the Company had capital expenditures in the
amount of $2,742,000, of which approximately $600,000 was for drill pipe
which currently is considered to be surplus, and approximately $300,000 for
an oil and gas prospect, including existing production. In the 1994 period
the Company had capital expenditures in the amount of $1,511,000 and
received $981,000 from the sale of a producing oil and gas field.
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 flow provided by operations.
RESULTS OF OPERATIONS
For the nine months ended December 31, 1995 compared to the same
period in 1994, contract drilling revenues decreased 23% to $13,169,000
from $17,091,000 due primarily to a decrease in average rig utilization to
54% from 64%. Operating income from this segment decreased to $656,000 from
$2,171,000. Oil and gas sales increased 53% to $909,000 from $592,000 as
average oil production increased to 118 barrels per day from 65 barrels per
day and average gas production increased to 917 MCF per day from 656 MCF
per day. The average price of oil did not change significantly and the
average gas price decreased to $1.38 per MCF from $1.60 per MCF. There was
an operating loss from this segment in the amount of $3,000 in the 1995
period compared to $13,000 for the 1994 period.
For the three months ended December 31, 1995 compared to the same
period in 1994, contract drilling revenues decreased 41% to $3,824,000 from
$6,481,000 due primarily to a decrease in average rig utilization from 70%
to 53%. There was an operating loss from this segment in the amount of
$27,000 in the 1995 period compared to income in the amount of $867,000 in
the 1994 period. Oil and gas sales increased 91% to $324,000 from $170,000
as average oil production increased to 129 barrels per day from 53 barrels
per day and average gas production increased to 897 MCF per day from 725
MCF per day. The average price of oil did not change significantly and the
average price of gas increased to $1.52 per MCF from $1.30 per MCF. There
was operating income from this segment in the amount of $19,000 in the 1995
period compared to a loss of $101,000 in the 1994 period.
OTHER
In January, 1996 the Board of Directors of the Company engaged an
investment banker to assist in the evaluation of alternatives for enhancing
the Company's stockholders' value including, but not limited to, possible
acquisitions, sales or mergers.
7
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. NONE
ITEM 2. NONE
ITEM 3. NONE
ITEM 4. NONE
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: February 13, 1996
---------------------
8
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-01-1995
<PERIOD-END> DEC-31-1995
<CASH> 4,741,885
<SECURITIES> 2,470,885
<RECEIVABLES> 2,567,773
<ALLOWANCES> 17,757
<INVENTORY> 15,342
<CURRENT-ASSETS> 10,155,224
<PP&E> 32,777,679
<DEPRECIATION> 24,658,784
<TOTAL-ASSETS> 18,826,581
<CURRENT-LIABILITIES> 2,075,501
<BONDS> 0
0
0
<COMMON> 20,925
<OTHER-SE> 16,365,005
<TOTAL-LIABILITY-AND-EQUITY> 18,826,581
<SALES> 14,077,748
<TOTAL-REVENUES> 14,077,748
<CGS> 12,463,214
<TOTAL-COSTS> 13,658,382
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 775,381
<INCOME-TAX> 54,000
<INCOME-CONTINUING> 721,381
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 721,381
<EPS-PRIMARY> .35
<EPS-DILUTED> .35
</TABLE>
