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 11, 1996
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 10, 1996 - Second
quarter 1996 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: July 11, 1996
EXHIBIT 99
Internet Address: http://www.rdgbat.com
"RB Reports Improved Second Quarter 1996 Results"
For additional information, please contact: Mr. Charles R. Ofner
(713) 496-5000
July 10, 1996, Houston, Texas ........ Reading & Bates Corporation
(RB-NYSE) reported net income of $15.8 million ($.23 net income per share
after preferred stock dividends of $1.2 million) for the quarter ended
June 30, 1996, compared with net income of $2.4 million ($.02 net income
per share after preferred stock dividends of $1.2 million) for the quarter
ended June 30, 1995. Operating income for the quarter ended June 30, 1996
was $22.4 million on revenues of $61.7 million, compared to operating
income for the quarter ended June 30, 1995 of $7.4 million on revenues of
$50.4 million. Included in the 1996 results are two significant non-
recurring items: a $3.5 million gain on the sale of our one mat-supported
jackup, the "D. K. McIntosh" included in Operating expenses, partially
offset by a non-recurring charge of $1.2 million included in Other, net
related to the write-off of expenses for recent merger discussions.
Notwithstanding the $3.5 million gain on the sale of the jackup, the $15.0
million improvement in operating income is primarily attributable to
higher dayrates and improved utilization of the fleet. Utilization for
the quarter ended June 30, 1996 was 89% compared to 83% for the quarter
ended June 30, 1995.
For the six months ended June 30, 1996 the Company reported net income
of $29.3 million ($.43 net income per share after preferred stock
dividends of $2.4 million) on revenues of $122.9 million compared to net
income of $2.1 million ($.01 loss per share after preferred stock
dividends of $2.4 million) on revenues of $98.4 million. Included in the
1996 results are two significant non-recurring items: a $3.5 million gain
on the sale of a mat-supported jackup, partially offset by a non-recurring
charge of $1.2 million included in Other, net related to expenses for
recent merger discussions. The increase in revenues is attributable to
higher dayrates and improved fleet utilization. Utilization for the six
months ended June 30, 1996 was 92% compared to 84% for the same period
ended June 30, 1995.
Paul B. Loyd, Jr. the Company's Chairman, President and CEO, said, "We
are pleased to report strong profits in the second quarter despite planned
downtime for a water depth upgrade to 3300 feet for the "M. G. Hulme,
Jr.", one of our third-generation semis, as well as downtime associated
with capital upgrades and mobilizations of three of our 300' cantilever
jackups. As we move into the third quarter our active fleet is 100%
contracted. The long-term outlook for our high specification fleet is
excellent as well, as evidenced by the 36 month commitment by Elf Angola
for our third-generation semisubmersible, the "Jim Cunningham", the letter
of intent for approximately 19 months for the second-generation
semisubmersible, "J. W. McLean" with Statoil in Ireland, and the letters
of intent issued by BP Exploration providing for two of our fourth-
generation semis, the "Paul B. Loyd, Jr." and the "Henry Goodrich", to be
utilized for the Schiehallion Field development drilling project with an
anticipated total project duration of 4-1/2 years. It is apparent that
our investment in deep-water, high-specification drilling has proven a
sound decision given the increased demand in these sectors.
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)
<TABLE>
READING & BATES CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands except per share amounts)
(unaudited)
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
- ---------------------------------------------------------------------------
1996 1995 1996 1995
- ---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATING REVENUES $ 61,700 $ 50,382 $ 122,890 $ 98,357
- ---------------------------------------------------------------------------
COSTS AND EXPENSES:
Operating expenses 26,126 31,234 56,957 63,145
Depreciation 7,740 7,380 15,308 14,813
General and administrative 5,394 4,354 9,984 8,435
- ---------------------------------------------------------------------------
Total costs and expenses 39,260 42,968 82,249 86,393
- ---------------------------------------------------------------------------
OPERATING INCOME 22,440 7,414 40,641 11,964
- ---------------------------------------------------------------------------
OTHER INCOME (EXPENSE):
Interest expense (3,643) (3,939) (6,424) (7,753)
Interest income 484 480 983 905
Other, net (1,062) (472) (1,158) (682)
- ---------------------------------------------------------------------------
Total other income (expense) (4,221) (3,931) (6,599) (7,530)
- ---------------------------------------------------------------------------
INCOME BEFORE INCOME TAX
EXPENSE AND MINORITY INTEREST 18,219 3,483 34,042 4,434
INCOME TAX EXPENSE 1,179 569 2,272 1,732
MINORITY INTEREST (1,205) (482) (2,463) (639)
- ---------------------------------------------------------------------------
NET INCOME 15,835 2,432 29,307 2,063
DIVIDENDS ON PREFERRED STOCK 1,212 1,215 2,425 2,430
- ---------------------------------------------------------------------------
NET INCOME (LOSS) APPLICABLE
TO COMMON STOCKHOLDERS $ 14,623 $ 1,217 $ 26,882 $ (367)
===========================================================================
PRIMARY NET INCOME (LOSS)
PER COMMON SHARE $ .23 $ .02 $ .43 $ (.01)
===========================================================================
FULLY DILUTED NET INCOME
PER COMMON SHARE $ .22 $ N/A $ .41 $ N/A
===========================================================================
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING:
PRIMARY 62,281 59,737 62,124 59,725
FULLY DILUTED 70,929 N/A 70,771 N/A
============================================================================
(more)
</TABLE>
<TABLE>
READING & BATES CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
(unaudited)
<CAPTION>
- --------------------------------------------------------------------
6/30/96 12/31/95
- --------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Cash and cash equivalents $ 44,501 $ 36,171
Other current assets 71,315 59,617
Net property and equipment 560,997 505,605
Other assets 4,211 4,387
- --------------------------------------------------------------------
TOTAL ASSETS $ 681,024 $ 605,780
====================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities $ 43,025 $ 54,490
Long-term obligations 143,895 95,040
Other noncurrent liabilities 62,367 54,695
Minority interest 43,355 44,504
Stockholders' equity 388,382 357,051
- --------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 681,024 $ 605,780
====================================================================
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</TABLE>
