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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: October 20, 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 October 19, 1994
- Release of third 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: October 20, 1994
EXHIBIT 99
For additional information, please contact:
Mr. C. R. Ofner
(713) 496-5000
October 19, 1994, Houston, Texas ........ Reading &
Bates Corporation (RB-NYSE) reported a net loss of $4
million ($.09 per share after preferred stock dividends of
$1.2 million) for the quarter ended September 30, 1994
compared to net income of $5.1 million ($.08 per share
after preferred stock dividends of $.8 million) for the
quarter ended September 30, 1993. Operating income for
the third quarter of 1994 was $.5 million on revenues of
$42.8 million, compared to an operating income of $9
million on revenues of $51.4 million for the third quarter
of 1993. The decrease in operating income is primarily
attributable to lower fleet utilization. Utilization for
the third quarter of 1994 was 74% compared to 94% in the
third quarter of 1993.
For the nine months ended September 30, 1994 the
Company reported a net loss of $11.5 million ($.27 per
share after preferred stock dividends of $3.6 million)
compared with net income of $5.2 million ($.08 per share
after preferred stock dividends of $.8 million) for the
nine months ended September 30, 1993. The operating loss
for the first nine months of 1994 was $.3 million on
revenues of $124.6 million, compared to operating income
of $15.9 million on revenues of $135.7 million for the
first nine months of 1993. The decrease in operating
income is primarily attributable to lower fleet
utilization. Utilization for the nine months ended
September 30, 1994 was 73% compared to 84% for the
comparable period in 1993.
The Company's Chairman and Chief Executive Officer,
Paul B. Loyd, Jr. stated, "Earnings continue to be
disappointing due to utilization weakness in some of our
international markets. However, based on current contract
activity with a number of clients, we expect 1995 results
to reflect substantial improvement over 1994."
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 NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1994 1993 1994 1993
<S> <C> <C> <C> <C>
OPERATING REVENUES $ 42,773 $ 51,429 $ 124,623 $ 135,675
-------- -------- --------- ---------
COSTS AND EXPENSES:
Operating expenses 30,703 30,452 90,301 85,460
Depreciation and amortization 7,302 8,152 21,343 22,071
General and administrative 4,271 3,817 13,241 12,251
-------- -------- --------- ---------
42,276 42,421 124,885 119,782
-------- -------- --------- ---------
OPERATING INCOME (LOSS) 497 9,008 (262) 15,893
-------- -------- --------- ---------
OTHER INCOME (EXPENSE):
Interest expense (3,443) (3,467) (9,760) (10,643)
Interest income 792 598 2,595 1,269
Equity in earnings (losses)
of unconsolidated investees 475 (75) 275 (197)
Other, net (1,830) (88) (2,389) (261)
-------- -------- --------- ---------
(4,006) (3,032) (9,279) (9,832)
-------- -------- --------- ---------
INCOME (LOSS) BEFORE INCOME TAX
EXPENSE AND MINORITY INTEREST (3,509) 5,976 (9,541) 6,061
INCOME TAX EXPENSE 709 721 2,791 2,959
MINORITY INTEREST INCOME (EXPENSE) 213 (137) 798 2,067
-------- -------- --------- ---------
NET INCOME (LOSS) (4,005) 5,118 (11,534) 5,169
DIVIDENDS ON PREFERRED STOCK 1,214 837 3,644 837
-------- -------- --------- ---------
NET INCOME (LOSS) APPLICABLE
TO COMMON STOCKHOLDERS $ (5,219) $ 4,281 $ (15,178) $ 4,332
======== ======== ========= =========
NET INCOME (LOSS) PER COMMON SHARE $ (.09) $ .08 $ (.27) $ .08
======== ======== ========= =========
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING 56,864 55,497 55,952 55,500
======== ======== ========= =========
</TABLE>
READING & BATES CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
9/30/94 12/31/93
<S> <C> <C>
ASSETS:
Cash and cash equivalents $ 39,591 $ 80,385
Other current assets 52,869 53,967
Net property and equipment 494,283 474,662
Investments and advances 706 212
Other assets 3,717 3,248
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TOTAL ASSETS $ 591,166 $ 612,474
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LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities $ 63,673 $ 56,622
Long-term obligations 81,563 96,562
Other noncurrent liabilities 71,963 71,240
Minority interest 44,766 68,507
Stockholders' equity 329,201 319,543
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 591,166 $ 612,474
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