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 15, 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 October 14, 1996 - Reading
& Bates announces 3rd quarter earnings.
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 15, 1996
EXHIBIT 99
Internet Address: http://www.rdgbat.com
RB Reports Improved Third Quarter 1996 Results
For additional information, please contact: Mr. Charles R. Ofner
(713) 496-5000
October 14, 1996, Houston, Texas ........ Reading & Bates
Corporation (RB-NYSE) reported net income of $22.6 million ($.34 per
share after preferred stock dividends of $1.2 million) for the quarter
ended September 30, 1996, compared with net income of $9.1 million ($.13
per share after preferred stock dividends of $1.2 million) for the quarter
ended September 30, 1995. Operating income for the quarter ended
September 30, 1996 was $28.4 million on revenues of $76.4 million,
compared to operating income for the quarter ended September 30, 1995 of
$12.7 million on revenues of $54.7 million. The $15.7 million
improvement in operating income is primarily attributable to higher
dayrates and improved utilization of the fleet. Utilization for the
quarter ended September 30, 1996 was 91% compared to 86% for the quarter
ended September 30, 1995.
For the nine months ended September 30, 1996 the Company reported net
income of $52.0 million ($.78 per share after preferred stock dividends of
$3.6 million) on revenues of $199.3 million compared to net income of
$11.2 million ($.13 per share after preferred stock dividends of $3.6
million) on revenues of $153.0 million. The increase in revenues is
attributable to higher dayrates and improved fleet utilization.
Utilization for the nine months ended September 30, 1996 was 91% compared
to 85% for the same period ended September 30, 1995.
Paul B. Loyd, Jr. the Company's Chairman, President and CEO, said, "We
are pleased to report strong profits in the third quarter. As
anticipated, dayrates have continued their upward momentum and we have
benefited from our strong operating leverage position to report improved
profitability. As we move into the fourth quarter, our fleet is
virtually 100% contracted. The long- range outlook for our fleet is
excellent as well, as evidenced by previously announced long-term contract
commitments on several units. The current business environment in this
industry is favorable and laden with opportunity; with our high-
specification fleet, access to floating production and field development
opportunities and strong financial position, Reading & Bates is a leader
in this period of rapid change for our industry."
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 NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
==========================================================================
1996 1995 1996 1995
==========================================================================
<S> <C> <C> <C> <C>
OPERATING REVENUES $ 76,413 $ 54,661 $ 199,303 $ 153,018
- --------------------------------------------------------------------------
COSTS AND EXPENSES:
Operating expenses 33,880 30,503 90,837 93,648
Depreciation 8,684 7,786 23,992 22,599
General and administrative 5,411 3,686 15,395 12,121
- --------------------------------------------------------------------------
Total costs and expenses 47,975 41,975 130,224 128,368
- --------------------------------------------------------------------------
OPERATING INCOME 28,438 12,686 69,079 24,650
- --------------------------------------------------------------------------
OTHER INCOME (EXPENSE):
Interest expense (3,362) (3,944) (9,786) (11,697)
Interest income 551 498 1,534 1,403
Other, net (706) (272) (1,864) (954)
- --------------------------------------------------------------------------
Total other income (expense) (3,517) (3,718) (10,116) (11,248)
- --------------------------------------------------------------------------
INCOME BEFORE INCOME TAX
EXPENSE AND MINORITY INTEREST 24,921 8,968 58,963 13,402
INCOME TAX EXPENSE (BENEFIT) 1,097 (193) 3,369 1,539
MINORITY INTEREST (1,179) (61) (3,642) (700)
- --------------------------------------------------------------------------
NET INCOME 22,645 9,100 51,952 11,163
DIVIDENDS ON PREFERRED STOCK 1,206 1,212 3,631 3,642
- --------------------------------------------------------------------------
NET INCOME APPLICABLE
TO COMMON STOCKHOLDERS $ 21,439 $ 7,888 $ 48,321 $ 7,521
==========================================================================
PRIMARY NET INCOME
PER COMMON SHARE $ .34 $ .13 $ .78 $ .13
==========================================================================
FULLY DILUTED NET INCOME
PER COMMON SHARE $ .32 $ N/A $ .74 $ N/A
==========================================================================
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING:
PRIMARY 62,686 60,085 62,313 59,847
FULLY DILUTED 71,058 N/A 70,679 N/A
==========================================================================
</TABLE>
(more)
<TABLE>
READING & BATES CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
(unaudited)
<CAPTION>
==========================================================================
9/30/96 12/31/95
==========================================================================
<S> <C> <C>
ASSETS:
Cash and cash equivalents $ 35,045 $ 36,171
Other current assets 83,791 59,617
Net property and equipment 612,095 505,605
Other assets 7,720 4,387
- --------------------------------------------------------------------------
TOTAL ASSETS $ 738,651 $ 605,780
==========================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities $ 45,165 $ 54,490
Long-term obligations 176,468 95,040
Other noncurrent liabilities 62,371 54,695
Minority interest 43,077 44,504
Stockholders' equity 411,570 357,051
- --------------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 738,651 $ 605,780
==========================================================================
</TABLE>
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