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 16, 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 February 16, 1995 -
Earnings release for the year and the
three months ended December 31, 1994
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 16, 1995
EXHIBIT 99
For additional information, please contact: Mr. C. R. Ofner
(713) 496-5000
February 16, 1995, Houston, Texas ......... Reading
& Bates Corporation (RB-NYSE) reported a net loss of $17.1
million ($.39 loss per share after preferred stock dividends
of $4.9 million) for the year ended December 31, 1994,
compared with net income for the year ended December 31, 1993
of $4.7 million ($.05 earnings per share after preferred stock
dividends of $2.1 million). The operating loss for the year
ended December 31, 1994 was $.8 million on revenues of $169.1
million, compared to operating income for the year ended
December 31, 1993 of $18.3 million on revenues of $183.8
million. The $19.1 million reduction in operating income is
primarily attributable to decreased revenues as a result of
reduced utilization of the drilling fleet. Utilization for
the year ended December 31, 1994 was 75% compared to 85% for
the year ended December 31, 1993.
For the fourth quarter of 1994, the Company reported a
net loss of $5.6 million ($.11 loss per share after preferred
stock dividends of $1.2 million) compared to a net loss of $.5
million for the fourth quarter of 1993 ($.03 loss per share
after preferred stock dividends of $1.2 million). The
operating loss for the fourth quarter of 1994 was $.6 million
on revenues of $44.4 million, compared to operating income in
the fourth quarter of 1993 of $2.4 million on revenues of
$48.1 million. Utilization for the quarter ended December 31,
1994 was 81% compared to 86% for the quarter ended December
31, 1993.
Paul B. Loyd, Jr., the Company's President, Chairman and
CEO, said, "Our losses in 1994 were primarily related to the
below average utilization of five specific rigs, each of
which already has substantially improved contract status for
1995. For this reason alone, we certainly expect to see
significantly improved financial performance in 1995. We
remain optimistic about the future of our core drilling
business, particularly in the area of deepwater/high
specification semis. The high specification semi market is
currently tight, all of the Company's five high specification
semis are contracted, and dayrates in this segment are moving
up faster than previously anticipated."
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, 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)
<TABLE>
<CAPTION>
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1994 1993 1994 1993
(unaudited)
<S> <C> <C> <C> <C>
OPERATING REVENUES $ 44,435 $ 48,077 $ 169,058 $ 183,752
-------- -------- --------- ---------
COSTS AND EXPENSES:
Operating expenses 32,680 32,136 122,981 117,596
Depreciation and amortization 7,566 7,687 28,909 29,758
General and administrative 4,752 5,835 17,993 18,086
-------- -------- --------- ---------
44,998 45,658 169,883 165,440
-------- -------- --------- ---------
OPERATING INCOME (LOSS) (563) 2,419 (825) 18,312
-------- -------- --------- ---------
OTHER INCOME (EXPENSE):
Interest expense (3,934) (3,175) (13,694) (13,818)
Interest income 668 801 3,263 2,070
Other, net (533) (50) (2,647) (508)
-------- -------- --------- ---------
(3,799) (2,424) (13,078) (12,256)
-------- -------- --------- ---------
INCOME (LOSS) BEFORE INCOME TAX
EXPENSE AND MINORITY INTEREST (4,362) (5) (13,903) 6,056
INCOME TAX EXPENSE 1,302 1,049 4,093 4,008
MINORITY INTEREST 52 541 850 2,608
-------- -------- --------- ---------
NET INCOME (LOSS) (5,612) (513) (17,146) 4,656
DIVIDENDS ON PREFERRED STOCK 1,215 1,215 4,859 2,052
-------- -------- --------- ---------
NET INCOME (LOSS) APPLICABLE
TO COMMON STOCKHOLDERS $ (6,827) $ (1,728) $ (22,005) $ 2,604
======== ======== ========= =========
NET INCOME (LOSS) PER
COMMON SHARE $ (.11) $ (.03) $ (.39) $ .05
======== ======== ========= =========
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING 59,713 55,491 56,900 55,497
======== ======== ========= =========
</TABLE>
READING & BATES CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
<TABLE>
<CAPTION>
12/31/94 12/31/93
<S> <C> <C>
ASSETS:
Cash and cash equivalents $ 42,319 $ 80,385
Other current assets 49,841 53,967
Net property and equipment 490,319 474,662
Other assets 3,584 3,460
--------- ---------
TOTAL ASSETS $ 586,063 $ 612,474
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities $ 92,062 $ 56,622
Long-term obligations 63,455 96,562
Other noncurrent liabilities 64,515 71,240
Minority interest 43,871 68,507
Stockholders' equity 322,160 319,543
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 586,063 $ 612,474
========= =========
</TABLE>
