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: April 21, 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 April 21,
1994 - First Quarter 1994
Earnings Release.
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: April 21, 1994
EXHIBIT 99
For additional information, please contact: Mr. C. R. Ofner or
Mr.Tim W. Nagle
(713) 496-5000
April 21, 1994, Houston, Texas ........ Reading & Bates
Corporation (RB-NYSE) reported a net loss of $1.5 million ($.05
per share after preferred stock dividends of $1.2 million) for
the quarter ended March 31, 1994 compared to a net loss of $2.2
million ($.04 per share) for the quarter ended March 31, 1993.
Operating income was $2.4 million on revenues of $42.4 million
for the first quarter of 1994 compared to operating income of $.6
million on revenues of $35.9 million for the first quarter of
1993. The increase in operating income was primarily due to
higher utilization of the semisubmersible fleet, 66% in the first
quarter of 1994 compared to 54% in the first quarter of 1993.
Overall fleet utilization was 77% in the first quarter of 1994
compared to 71% in the first quarter of 1993.
The Company's Chairman, President and Chief Executive
Officer, Paul B. Loyd, Jr. characterized the current environment
for the company's services as somewhat mixed, with strength in
some of the markets that the company participates in, such as the
overall tender market and the far east semisubmersible market,
and weakness in others, such as the jackup market in West Africa.
However, Mr. Loyd indicated that he believes the long term
outlook for the company remains favorable and that the company's
quality fleet along with its reputation for safety and quality
operations leaves it poised to benefit substantially when the
drilling market comes into better overall balance. Mr. Loyd also
emphasized that the company is currently working on several new
business projects related to floating production that have the
potential to improve our longer term financial results,
independent of the company's drilling fleet's results.
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)
READING & BATES CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands except per share amounts)
THREE MONTHS ENDED
MARCH 31,
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1994 1993
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(unaudited)
OPERATING REVENUES $ 42,357 $ 35,939
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COSTS AND EXPENSES:
Operating expenses 28,625 24,712
Depreciation and amortization 6,920 6,621
General and administrative 4,415 4,010
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39,960 35,343
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OPERATING INCOME 2,397 596
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OTHER INCOME (EXPENSE):
Interest expense (3,113) (3,481)
Interest income 751 357
Equity in losses
of unconsolidated investees (134) (1)
Other, net (258) (422)
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(2,754) (3,547)
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LOSS FROM OPERATIONS BEFORE INCOME
TAX EXPENSE AND MINORITY INTEREST (357) (2,951)
INCOME TAX EXPENSE 908 1,283
MINORITY INTEREST INCOME (EXPENSE) (226) 2,046
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NET LOSS (1,491) (2,188)
DIVIDEND ON PREFERRED STOCK 1,215 -
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NET LOSS APPLICABLE TO COMMON STOCKHOLDERS $ (2,706) $ (2,188)
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NET LOSS PER COMMON SHARE $ (.05) $ (.04)
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READING & BATES CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
(unaudited)
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3/31/94 12/31/93
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ASSETS:
Cash and cash equivalents $ 75,401 $ 80,385
Other current assets 48,629 53,967
Net property and equipment 472,215 474,662
Investments and advances 304 212
Other assets 4,724 3,248
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TOTAL ASSETS $ 601,273 $ 612,474
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LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities $ 51,975 $ 56,622
Long-term obligations 91,595 96,562
Other noncurrent liabilities 72,899 71,240
Minority interest 67,781 68,507
Stockholders' equity 317,023 319,543
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 601,273 $ 612,474
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