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: July 19, 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 July 19, 1994,
release of second 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: July 19, 1994
EXHIBIT 99
For additional information, please contact: Mr. C. R. Ofner
(713) 496-5000
July 19, 1994, Houston, Texas ........ Reading & Bates
Corporation (RB-NYSE) reported a net loss of $6.0 million ($.13
per share after preferred stock dividends of $1.2 million), on
revenues of $39.5 million, for the quarter ended June 30, 1994
compared to net income of $2.2 million ($.04 per share), on
revenues of $48.3 million for the quarter ended June 30, 1993.
The decrease in net income is primarily attributable to lower
average dayrates and lower fleet utilization. Utilization for
the second quarter of 1994 was 68% compared to 88% in the second
quarter of 1993.
For the six months ended June 30, 1994 the Company reported
a net loss of $7.5 million ($.18 per share after preferred stock
dividends of $2.4 million) compared with net income of $51,000
for the six months ended June 30, 1993. Revenues for the first
half of 1994 were $81.8 million compared to revenues of $84.2
million for the first half of 1993.
The Company's Chairman and Chief Executive Officer, Paul B.
Loyd, Jr., said that the earnings weakness was chiefly due to
lower jackup and semi-submersible utilization in a number of
countries in which the Company operates. "We believe that
international utilization should improve based on recent
indications that oil companies will release a greater percentage
of funding for exploration and development from their budgets in
the future," Mr. Loyd stated.
Reading & Bates is a New York Stock Exchange listed company,
providing offshore drilling services 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)
# # #
READING & BATES CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands except per share amounts)
(unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
1994 1993 1994 1993
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
OPERATING REVENUES $ 39,493 48,307 $ 81,850 84,246
--------- --------- --------- ---------
COSTS AND EXPENSES:
Operating expenses 30,973 30,296 59,598 55,008
Depreciation and amortization 7,121 7,298 14,041 13,919
General and administrative 4,555 4,424 8,970 8,434
--------- --------- --------- ---------
42,649 42,018 82,609 77,361
--------- --------- --------- ---------
OPERATING INCOME (LOSS) (3,156) 6,289 (759) 6,885
--------- --------- --------- ---------
OTHER INCOME (EXPENSE):
Interest expense (3,204) (3,695) (6,317) (7,176)
Interest income 1,052 314 1,803 671
Equity in losses of
unconsolidated investees (66) (121) (200) (122)
Other, net (301) 249 (559) (173)
--------- --------- --------- ---------
(2,519) (3,253) (5,273) (6,800)
--------- --------- --------- ---------
INCOME (LOSS) BEFORE INCOME TAX
EXPENSE AND MINORITY INTEREST (5,675) 3,036 (6,032) 85
INCOME TAX EXPENSE 1,174 955 2,082 2,238
MINORITY INTEREST INCOME (EXPENSE) 811 158 585 2,204
--------- --------- --------- ---------
NET INCOME (LOSS) (6,038) 2,239 (7,529) 51
DIVIDENDS ON PREFERRED STOCK 1,215 - 2,430 -
--------- --------- --------- ---------
NET INCOME (LOSS) APPLICABLE
TO COMMON STOCKHOLDERS $ (7,253) 2,239 $ (9,959) 51
========= ========= ========= =========
NET INCOME (LOSS) PER
COMMON SHARE $ (.13) .04 $ (.18) .00
========= ========= ========= =========
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING 55,487 55,536 55,488 55,537
========= ========= ========= =========
</TABLE>
READING & BATES CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
6/30/94 12/31/93
----------- -----------
<S> <C> <C>
ASSETS:
Cash and cash equivalents $ 74,045 $ 80,385
Other current assets 54,339 53,967
Net property and equipment 454,690 474,662
Investments and advances 234 212
Other assets 2,828 3,248
----------- -----------
TOTAL ASSETS $ 586,136 $ 612,474
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities $ 70,315 $ 56,622
Long-term obligations 86,927 96,562
Other noncurrent liabilities 65,472 71,240
Minority interest 53,483 68,507
Stockholders' equity 309,939 319,543
----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 586,136 $ 612,474
=========== ===========
</TABLE>
