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: February 15, 1994
READING & BATES CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-5587 73-0642271
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
901 Threadneedle, Suite 200, Houston, TX 77079
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (713) 496-5000
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit 99 - Press Release dated February 15, 1994 - 4th Quarter
Earnings
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf of the
undersigned thereunto duly authorized.
READING & BATES CORPORATION
By /s/T. W. Nagle
T. W. Nagle
Vice President & Chief Financial Officer
Dated: February 15, 1994
Exhibit - 99
For additional information, please contact: Mr. C. R. Ofner
(713) 496-5000
February 15, 1994, Houston, Texas.......... Reading & Bates Corporation
(RB-NYSE) reported net income of $4.7 million ($.05 earnings per share
after preferred stock dividends of $2.1 million) for the year ended
December 31, 1993, compared with net income for the year ended
December 31, 1992 of $3.4 million ($.04 loss per share after $5.3 million
of accretion in redemption price of redeemable stocks). Operating income
for 1993 was $18.3 million on revenues of $183.8 million compared to an
operating loss for 1992 of $7.2 million on revenues of $156.7 million.
The $25.5 million improvement in operating income is primarily attributable
to increased revenues as a result of improved utilization of the drilling
fleet. Utilization for the year ended December 31, 1993 was 85% compared
to 72% for the year ended December 31, 1992. Results for the year ended
December 31, 1992 included $6.8 million of non-recurring income due to a
curtailment gain, which was the result of the Company modifying its
postretirement benefits, and a tax refund which increased interest income
by $10.6 million and decreased income tax expense by $1.9 million.
For the 4th quarter of 1993, the Company reported a net loss of $.5 million
($.03 loss per share after preferred stock dividends of $1.2 million) compared
to a net loss of $4.6 million ($.10 loss per share after $.5 million of
accretion in redemption price of redeemable stocks) for the 4th quarter of 1992.
Operating income for the 4th quarter of 1993 was $2.4 million on revenues of
$48.1 million compared to an operating loss for the 4th quarter of 1992 of $2.4
million on revenues of $36.9 million. The $4.8 million improvement in operating
income is primarily attributable to increased revenues as a result of improved
utilization of the drilling fleet. Utilization for the quarter ended December
31, 1993 was 86% compared to 63% for the quarter ended December 31, 1992.
The Company's Chairman and Chief Executive Officer, Paul B. Loyd, Jr., said
that despite the substantial improvement in operating results for 1993
compared to 1992, current overall industry conditions continue to inhibit
profitability expectations in the near term. However, over the longer term as
supply and demand for the industry comes into better balance, the Company's
quality fleet should permit a significant improvement in profitability.
Additionally, the Company expects its continued involvement in floating
production through the Amoco Liuhua project and other opportunities to
contribute to future profitability.
Reading & Bates is a New York Stock Exchange listed company, engaging in
offshore drilling throughout the world. Its wholly owned subsidiary, Reading
& Bates Development Co., provides technical, construction and project
management services to the upstream offshore oil and gas industry worldwide.
(financial highlights to follow)
# # #
<TABLE>
READING & BATES CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands except per share amounts)
(unaudited)
<CAPTION>
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1993 1992 1993 1992
--------- -------- --------- ---------
<S> <C> <C> <C> <C>
OPERATING REVENUES $ 48,077 $ 36,908 $ 183,752 $ 156,659
--------- -------- --------- ---------
COSTS AND EXPENSES:
Operating expenses 32,136 27,289 117,596 114,010
Depreciation and amortization 7,687 8,080 29,758 32,978
General and administrative 5,835 3,946 18,086 16,834
--------- -------- --------- ---------
45,658 39,315 165,440 163,822
--------- -------- --------- ---------
OPERATING INCOME (LOSS) 2,419 (2,407) 18,312 (7,163)
--------- -------- --------- ---------
OTHER INCOME (EXPENSE):
Interest expense (3,175) (3,678) (13,818) (16,266)
Interest income 801 496 2,070 12,935
Equity in earnings (losses)
of unconsolidated investees (27) 530 (224) 259
Other, net (23) (1,466) (284) 4,976
--------- -------- -------- --------
(2,424) (4,118) (12,256) 1,904
--------- -------- -------- --------
INCOME (LOSS) BEFORE INCOME TAXES
AND MINORITY INTEREST (5) (6,525) 6,056 (5,259)
INCOME TAXES 1,049 441 4,008 102
MINORITY INTEREST 541 2,353 2,608 8,763
--------- -------- -------- --------
NET INCOME (LOSS) (513) (4,613) 4,656 3,402
DIVIDENDS ON PREFERRED STOCK 1,215 - 2,052 -
ACCRETION IN REDEMPTION PRICE
OF REDEEMABLE STOCKS - 466 - 5,275
--------- -------- -------- --------
NET INCOME (LOSS) APPLICABLE
TO COMMON STOCKHOLDERS $ (1,728) $ (5,079) $ 2,604 $ (1,873)
========= ======== ========= ========
NET INCOME (LOSS) PER COMMON
SHARE $ (.03) $ (.10) $ .05 $ (.04)
========= ======== ========= ========
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING 55,491 53,289 55,497 49,018
========= ======== ========= ========
</TABLE>
<TABLE>
READING & BATES CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
(unaudited)
<CAPTION>
12/31/93 12/31/92
---------- ----------
<S> <C> <C>
ASSETS:
Cash and cash equivalents $ 80,385 $ 53,122
Other current assets 53,967 48,051
Net property and equipment 474,662 501,392
Investments and advances 212 624
Other assets 3,248 11,439
---------- ----------
TOTAL ASSETS $ 612,474 $ 614,628
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities $ 56,622 $ 73,540
Long-term obligations 96,562 115,151
Other noncurrent liabilities 71,240 73,026
Minority interest 68,507 107,488
Stockholders' equity 319,543 245,423
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 612,474 $ 614,628
========== ==========
</TABLE>
