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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (Date of earliest event reported): JANUARY 31, 2000
WEATHERFORD INTERNATIONAL, INC.
(Exact name of registrant as specified in charter)
DELAWARE 1-13086 04-2515019
(State of (Commission (I.R.S. Employer
Incorporation) File No.) Identification No.)
515 POST OAK BLVD., SUITE 600
HOUSTON, TEXAS 77027
(Address of Principal Executive Offices) (Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (713) 693-4000
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EXHIBIT INDEX APPEARS ON PAGE 4
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ITEM 5. OTHER EVENTS
EARNINGS RELEASE
On January 31, 2000, we announced our results for the fourth quarter
and year ended December 31, 1999. A copy of the press release announcing our
results for the fourth quarter and year ended December 31, 1999, is filed as
Exhibit 99.1 and is hereby incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1 Press release dated January 31, 2000, announcing
Weatherford's results for the fourth quarter and year
ended December 31, 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
WEATHERFORD INTERNATIONAL, INC.
Dated: January 31, 2000 /s/ Bruce F. Longaker, Jr.
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Bruce F. Longaker, Jr.
Senior Vice President
and Chief Financial Officer
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INDEX TO EXHIBITS
NUMBER EXHIBIT
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99.1 Press release dated January 31, 2000, announcing
Weatherford's results for the fourth quarter and year
ended December 31, 1999.
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EXHIBIT 99.1
WEATHERFORD ANNOUNCES
FOURTH QUARTER 1999 AND YEAR END RESULTS
HOUSTON, January 31, 2000 -- Weatherford International, Inc. (NYSE:WFT) today
reported fourth quarter 1999 income from continuing operations of $7.5 million,
or 7 cents per share, on revenues of $372.6 million. This compares to fourth
quarter 1998 income from continuing operations of $10.5 million, or 11 cents per
share, excluding one time charges of $30.5 million, net of tax, related to the
downturn in the industry that occurred in the second half of 1998.
Fourth quarter revenues were up 15% from the third quarter of 1999, reflecting
continued increase in North American activity levels, as well as the beneficial
impact of acquisitions and joint ventures completed in late 1998 and 1999.
Operating income for the fourth quarter of 1999 was $23.5 million and was up 33%
over the third quarter of 1999 and essentially flat with the fourth quarter of
1998 before $47.0 million of prior year charges.
During the fourth quarter the Company substantially completed its integration of
its acquisitions of Dailey International, Inc., Petroline Wellsystems Limited
and Williams Tool Co. and began realizing the consolidation and financial
benefits of these acquisitions and other acquisitions completed during the year.
Partially offsetting these benefits were historically low activity levels in the
higher margin international markets, in particular the Eastern Hemisphere, and
the impact of price decreases from prior quarters in response to the downturn in
those markets.
As a result of the Company's proposed spin-off of its Grant Prideco Drilling
Products Division, fourth quarter 1999 results for that division are reported as
Income (Loss) from Discontinued Operations. The loss from discontinued
operations in the fourth quarter was $17.8 million, or 16 cents per share,
inclusive of a one time charge of $6.1 million, net of tax, directly related to
the write off of certain assets in India.
The spin-off of Grant Prideco is continuing to move forward, with the timing of
the spin-off to be dependent on the timing of the receipt of the private letter
ruling from the Internal Revenue Service. Based on conversations with the
Internal Revenue Service, the Company currently expects that the requested
ruling should be received sometime during the latter part of the first quarter
of 2000. The Company expects that once the ruling is received, a record date for
the spin-off would be announced and the spin-off would be completed within three
to four weeks following the record date.
For the year ended December 31, 1999, consolidated revenues were $1.2 billion,
down 9% compared to 1998. Income from continuing operations was $16.2 million,
compared to $103.1 million last year, excluding one time charges of $104.0
million, net of taxes for charges related to the merger of EVI and Weatherford
Enterra and the downturn in business in 1998.
COMPLETION AND OILFIELD SERVICES
Revenues in the Completion & Oilfield Services division were up 11% over the
fourth quarter 1998 and 23% sequentially from the third quarter to $218.1
million. North American revenues continued to increase in the quarter,
particularly in the United States which was up 50% over the previous quarter,
inclusive of revenues of approximately $25 million related to acquisitions made
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in the third quarter of 1999. International revenues continue to be
significantly down from fourth quarter 1998 levels but were flat compared to
last quarter, including acquisition related revenues.
As a result of higher revenues, particularly in the drilling and intervention
services segment which has a high fixed cost component in its operations,
operating margins were up 3% as a percent of sales, compared to the third
quarter 1999.
ARTIFICIAL LIFT SYSTEMS
Revenues in this division were up 54% over last year's fourth quarter to $95.1
million. Most of this increase in revenues is a direct result of higher North
American activity levels. Sequentially, revenues increased by 21%, with most of
the increase again attributable to Canada. Artificial Lift's operating income
margin continues to improve, up approximately 2% from the third quarter,
primarily due to the higher revenue level, combined with significant cost
reductions taken early in 1999.
COMPRESSION SERVICES
Weatherford Global Compression Services (WGCS) had revenues of $59.5 million in
the fourth quarter, $14.8 million higher than the fourth quarter 1998, due to
added revenues from the joint venture with GE Capital early in 1999 and
increased international activity. Revenues were down sequentially from the third
quarter by $8.5 million, or 12% primarily due to lower equipment sales compared
to the third quarter. Service revenues remained relatively flat compared to last
quarter.
In December 1999, WGCS sold Gemini, its compression manufacturing company to GE
Power Systems. This disposal is consistent with WGCS objective to participate
more in the service sector of the gas compression business.
Houston-based Weatherford International, Inc. (http://www.weatherford.com) is
one of the largest global providers of innovative mechanical solutions,
technology and services for the drilling and production sectors of the oil and
gas industry. Weatherford operates in over 50 countries and employs more than
10,000 people worldwide.
Contacts:
Bruce F. Longaker (713) 693-4161
Don Galletly (713) 693-4148
This press release may contain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 concerning, among other
things, Weatherford's prospects for its operations and the integration of recent
acquisitions, all of which are subject to certain risks, uncertainties and
assumptions. These risks and uncertainties, which are more fully described in
Weatherford International, Inc.'s Annual, Quarterly and Current Reports filed
with the Securities and Exchange Commission, include the impact of oil and
natural gas prices and worldwide economic conditions on drilling activity and
the demand for and pricing of Weatherford's products. Should one or more of
these risks or uncertainties materialize, or should the assumptions prove
incorrect, actual results may vary in material aspects from those currently
anticipated.
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WEATHERFORD INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In 000's, Except Per Share Amounts)
<TABLE>
<CAPTION>
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------------- --------------------------
1999 1998 1999 1998
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<S> <C> <C> <C> <C>
Net Revenues:
Completion and Oilfield Services $ 218,095 $ 195,648 $ 720,754 $ 857,172
Artificial Lift Systems 95,091 61,630 293,529 329,196
Compression Services 59,453 44,675 225,917 177,481
----------- ----------- ----------- -----------
372,639 301,953 1,240,200 1,363,849
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Operating Income (Loss):
Completion and Oilfield Services 17,817 8,456 54,736 137,117
Artificial Lift Systems 8,673 (24,170) 16,455 (19,223)
Compression Services 4,780 3,490 21,574 17,092
Corporate Expenses (7,797) (11,038) (25,947) (98,815)
----------- ----------- ----------- -----------
23,473 (23,262) 66,818 36,171
Other Income (Expense):
Other, Net 2,457 1,053 6,470 233
Interest Expense (12,987) (11,128) (44,904) (42,489)
----------- ----------- ----------- -----------
Income (Loss) Before Income Taxes 12,943 (33,337) 28,384 (6,085)
Benefit (Provision) for Income Taxes (4,574) 13,287 (8,477) 5,297
----------- ----------- ----------- -----------
Income (Loss) Before Minority Interest 8,369 (20,050) 19,907 (788)
Minority Interest Income (Expense), Net of Taxes (880) 4 (3,701) (95)
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Net Income (Loss) from Continuing Operations 7,489 (20,046) 16,206 (883)
Income (Loss) from Discontinued Operations, Net of Taxes (17,789) (4,123) (37,081) 65,720
----------- ----------- ----------- -----------
Net Income (Loss) $ (10,300) $ (24,169) $ (20,875) $ 64,837
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Basic Earnings (Loss) Per Share:
Income (Loss) from Continuing Operations $ 0.07 $ (0.21) $ 0.16 $ (0.01)
Income (Loss) from Discontinued Operations (0.16) (0.04) (0.37) 0.68
----------- ----------- ----------- -----------
Net Income (Loss) Per Share $ (0.09) $ (0.25) $ (0.21) $ 0.67
=========== =========== =========== ===========
Diluted Earnings (Loss) Per Share:
Income (Loss) from Continuing Operations $ 0.07 $ (0.21) $ 0.16 $ (0.01)
Income (Loss) from Discontinued Operations (0.16) (0.04) (0.36) 0.68
----------- ----------- ----------- -----------
Net Income (Loss) Per Share $ (0.09) $ (0.25) $ (0.20) $ 0.67
=========== =========== =========== ===========
Weighted Average Shares Outstanding:
Basic 108,669 97,340 101,245 97,065
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Diluted 110,636 97,340 102,889 97,065
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Depreciation and Amortization:
Completion and Oilfield Services $ 32,698 $ 26,121 $ 111,268 $ 95,495
Artificial Lift Systems 5,370 4,872 20,064 19,183
Compression Services 7,932 4,987 33,125 23,079
Corporate 690 254 2,201 1,801
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$ 46,690 $ 36,234 $ 166,658 $ 139,558
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</TABLE>
