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 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 October 16,
1995 - 3rd 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
Executive Vice President,
Finance and Administration
Dated: October 16, 1995
EXHIBIT 99
FOR IMMEDIATE RELEASE Contact: Mr. Charles R. Ofner
(713) 496-5000
RB Reports Improved Third Quarter 1995 Results
October 16, 1995, Houston, Texas ... Reading & Bates Corporation
(NYSE: RB) reported net income of $9.1 million ($.13 net income per share
after preferred stock dividends of $1.2 million) on revenues of $54.7
million for the quarter ended September 30, 1995 compared to a net loss of
$4.0 million ($.09 loss per share after preferred stock dividends of $1.2
million) on revenues of $42.8 million for the quarter ended September 30,
1994. The increase in revenues is largely attributable to higher fleet
utilization and increased dayrates. Utilization for the third quarter of
1995 was 86% compared to 74% for the third quarter of 1994.
For the nine months ended September 30, 1995 the Company reported
net income of $11.2 million ($.13 net income per share after preferred
stock dividends of $3.6 million), on revenues of $153.0 million compared
to a net loss of $11.5 million ($.27 loss per share after preferred stock
dividends of $3.6 million) on revenues of $124.6 million. Again, the
increase in revenues is mainly attributable to higher fleet utilization
and increased dayrates. Utilization for the nine months ended September
30, 1995 was 85% compared to 73% for the same period ended September 30,
1994.
Paul B. Loyd, Jr. the Company's Chairman and CEO, said, "We are
pleased to report improved third quarter results. As expected, earnings
and cash flows continued their upward movement as our fleet contract
status continued to improve. As we move into the fourth quarter, our core
fleet is 100% contracted. The high specification semisubmersible market
continues to tighten and prospects for all of our semis are excellent.
Seven of our nine core jackups are contracted well into 1996 with good
prospects for our remaining two core jackups. Our two tenders are solidly
contracted with one contracted until late 1996 and the other until late
1997. Many of the dayrates being set at the margin, particularly for our
semis, are substantially in excess of those achieved in the third quarter
of 1995, and we remain optimistic concerning further improvements in our
financial results.
Reading & Bates completed two important investments this quarter:
the acquisition of the "Iolair", a dynamically positioned third-generation
semisubmersible support vessel and the "Treasure Driller", now renamed,
"Rig 42", a large second-generation semi. The "Iolair" is currently
working for BP in the Foinaven Field and will undergo a comprehensive
upgrade in 1996 after which it will be used under a long-term gain share
alliance with BP. "Rig 42" is an excellent candidate for the extended
well test market, deep-water and/or harsh environment drilling or
conversion to a floating production unit. Our third quarter results did
not benefit materially from these acquisitions nor do we expect material
incremental benefits in the fourth quarter, however we expect our
investment in these two vessels to contribute substantially to net income
in 1996 and thereafter."
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 NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------ -----------------
1995 1994 1995 1994
-------- -------- --------- ---------
<S> <C> <C> <C> <C>
OPERATING REVENUES $ 54,661 $ 42,773 $ 153,018 $ 124,623
-------- -------- --------- ---------
COSTS AND EXPENSES:
Operating expenses 30,503 30,703 93,648 90,301
Depreciation and amortization 7,786 7,302 22,599 21,343
General and administrative 3,686 4,271 12,121 13,241
-------- -------- --------- ---------
Total costs and expenses 41,975 42,276 128,368 124,885
-------- -------- --------- ---------
OPERATING INCOME (LOSS) 12,686 497 24,650 (262)
-------- -------- --------- ---------
OTHER INCOME (EXPENSE):
Interest expense (3,944) (3,443) (11,697) (9,760)
Interest income 498 792 1,403 2,595
Other, net (272) (1,355) (954) (2,114)
-------- -------- --------- ---------
Total other income (expense) (3,718) (4,006) (11,248) (9,279)
-------- -------- --------- ---------
INCOME (LOSS) BEFORE INCOME TAX
EXPENSE AND MINORITY INTEREST 8,968 (3,509) 13,402 (9,541)
INCOME TAX EXPENSE (193) 709 1,539 2,791
MINORITY INTEREST (61) 213 (700) 798
-------- -------- --------- ---------
NET INCOME (LOSS) 9,100 (4,005) 11,163 (11,534)
DIVIDENDS ON PREFERRED STOCK 1,212 1,214 3,642 3,644
-------- -------- --------- ---------
NET INCOME (LOSS) APPLICABLE
TO COMMON STOCKHOLDERS $ 7,888 (5,219) $ 7,521 $ (15,178)
======== ======== ========= =========
NET INCOME (LOSS) PER COMMON SHARE $ .13 (.09) $ .13 (.27)
======== ======== ========= =========
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING 60,085 56,864 59,847 55,952
======== ======== ========= =========
</TABLE>
READING & BATES CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
9/30/95 12/31/94
--------- ---------
<S> <C> <C>
ASSETS:
Cash and cash equivalents $ 34,363 $ 42,319
Other current assets 58,475 50,430
Net property and equipment 525,077 490,319
Other assets 2,657 3,733
--------- ---------
TOTAL ASSETS $ 620,572 $ 586,801
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities $ 78,630 $ 86,041
Long-term obligations 96,728 81,937
Other noncurrent liabilities 53,661 52,792
Minority interest 44,496 43,871
Stockholders' equity 347,057 322,160
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 620,572 $ 586,801
========= =========
</TABLE>
