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, 1995
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, 1995 - Second
quarter 1995 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: July 19, 1995
EXHIBIT 99
For additional information, please contact: Mr. Charles R. Ofner
(713) 496-5000
July 19, 1995, Houston, Texas ........ Reading & Bates
Corporation (RB-NYSE) reported net income of $2.4 million ($.02 income
per share after preferred stock dividends of $1.2 million) on revenues of
$50.4 million for the quarter ended June 30, 1995 compared to a net loss
of $6.0 million ($.13 loss per share after preferred stock dividends of
$1.2 million) on revenues of $39.5 million for the quarter ended June 30,
1994. The increase in revenues is largely attributable to higher fleet
utilization. Utilization for the second quarter of 1995 was 83% compared
to 69% for the second quarter of 1994.
For the six months ended June 30, 1995 the Company reported net
income of $2.1 million ($.01 loss per share after preferred stock
dividends of $2.4 million), on revenues of $98.4 million compared to a
net loss of $7.5 million ($.18 loss per share after preferred stock
dividends of $2.4 million) on revenues of $81.9 million. Again, the
increase in revenues is mainly attributable to higher fleet utilization.
Utilization for the six months ended June 30, 1995 was 84% compared to
73% for the same period ended June 30, 1994.
Paul B. Loyd, Jr. the Company's Chairman and CEO, said, "I am pleased
to report a return to profitability for R&B in the second quarter. This
trend should accelerate in the third and fourth quarters and 1996
as higher dayrate contracts already in place start to flow through our
income statement. As we move into the third quarter, our core fleet is
100% contracted, and we expect a contract for our one idle standard
jackup in the near future. Our recently announced contract award for the
"JACK BATES" in the U.K. sector of the North Atlantic is indicative of
the strength of the high specification semi market and should profit the
Company over future months and years. We will strive to achieve similar
rates for our other two fourth-generation rigs. The international jackup
market remains firm, benefitting our nine 300 foot cantilever jackups,
and our two drilling tenders are committed under contracts expected to
last until the third quarter of 1996. Our floating production group
remains active, particularly in the CG 254 project with Enserch and
Mobil. I am happy to report that R&B is running smoothly with all
cylinders firing as we enter the second half of 1995."
Reading & Bates is a New York Stock Exchange listed company,
engaging in offshore drilling services throughout the world. Its wholly
owned subsidiary, Reading & Bates Development Co., provides technical,
construction and project management services, and floating production
systems 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,
- -------------------------------------------------------------------------------
1995 1994 1995 1994
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATING REVENUES $ 50,382 $ 39,493 $ 98,357 $ 81,850
- -------------------------------------------------------------------------------
COSTS AND EXPENSES:
Operating expenses 31,234 30,973 63,145 59,598
Depreciation and amortization 7,380 7,121 14,813 14,041
General and administrative 4,354 4,555 8,435 8,970
- -------------------------------------------------------------------------------
Total costs and expenses 42,968 42,649 86,393 82,609
- -------------------------------------------------------------------------------
OPERATING INCOME (LOSS) 7,414 (3,156) 11,964 (759)
- -------------------------------------------------------------------------------
OTHER INCOME (EXPENSE):
Interest expense (3,939) (3,204) (7,753) (6,317)
Interest income 480 1,052 905 1,803
Other, net (472) (367) (682) (759)
- -------------------------------------------------------------------------------
Total other income (expense) (3,931) (2,519) (7,530) (5,273)
- -------------------------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAX
EXPENSE AND MINORITY INTEREST 3,483 (5,675) 4,434 (6,032)
INCOME TAX EXPENSE 569 1,174 1,732 2,082
MINORITY INTEREST (482) 811 (639) 585
- -------------------------------------------------------------------------------
NET INCOME (LOSS) 2,432 (6,038) 2,063 (7,529)
DIVIDENDS ON PREFERRED STOCK 1,215 1,215 2,430 2,430
- -------------------------------------------------------------------------------
NET INCOME (LOSS) APPLICABLE
TO COMMON STOCKHOLDERS $ 1,217 $ (7,253) $ (367) $ (9,959)
===============================================================================
NET INCOME (LOSS) PER COMMON
SHARE $ .02 $ (.13) $ (.01) $ (.18)
===============================================================================
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING 59,737 55,487 59,725 55,488
===============================================================================
</TABLE>
READING & BATES CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
6/30/95 12/31/94
- -----------------------------------------------------------------
<S> <C> <C>
ASSETS:
Cash and cash equivalents $ 40,386 $ 42,319
Other current assets 56,509 49,841
Net property and equipment 490,870 490,319
Other assets 3,916 3,584
- -----------------------------------------------------------------
TOTAL ASSETS $ 591,681 $ 586,063
=================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities $ 96,926 $ 92,062
Long-term obligations 81,286 81,937
Other noncurrent liabilities 46,695 46,033
Minority interest 44,436 43,871
Stockholders' equity 322,338 322,160
- -----------------------------------------------------------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 591,681 $ 586,063
=================================================================
</TABLE>
