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: April 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 April 15, 1996 - first
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: April 15, 1996
EXHIBIT 99
RB Reports Improved First Quarter 1996 Results
For additional information, please contact: Mr. Charles R. Ofner
(713) 496-5000
April 15, 1996, Houston, Texas ... Reading & Bates Corporation
(RB-NYSE) reported net income of $13.5 million ($.20 net income per share
after preferred stock dividends of $1.2 million) for the quarter ended
March 31, 1996, compared with a net loss of $.4 million ($.03 loss per
share after preferred stock dividends of $1.2 million) for the quarter
ended March 31, 1995. Operating income for the quarter ended March 31,
1996 was $18.2 million on revenues of $61.2 million, compared to operating
income for the quarter ended March 31, 1995 of $4.5 million on revenues of
$48.0 million. The $13.7 million improvement in operating income is
attributable to higher dayrates and improved utilization of the fleet.
Utilization for the quarter ended March 31, 1996 was 95% compared to 86%
for the quarter ended March 31, 1995. Operating income for the first
quarter of 1996 increased $4.6 million over operating income reported in
the fourth quarter of 1995 of $13.6 million.
Paul B. Loyd, Jr. the Company's Chairman and CEO, said, "We are
pleased to report strong profits in the first quarter. As expected,
dayrates have continued to rise, and utilization continues to improve as
well; thus we've benefited from operating leverage to report favorable
results. Our fourth-generation semisubmersible fleet recorded 100%
utilization in the first quarter, and our total fleet utilization average
this quarter increased by 8% over the fourth quarter 1995 results. The
outlook for our high specification fleet is excellent as illustrated by
the recently announced letter of intent from BP Exploration for our
fourth-generation semisubmersible, the "Paul B. Loyd, Jr." as well as
several other contracts already in place. We feel the demand for high
specification drilling rigs will continue to grow -- mainly as a function
of declining field development costs due to technological advancement.
This is a positive development for Reading & Bates, and we stand poised
with our premium fleet, expertise and solid financial condition to meet
the challenge."
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)
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READING & BATES CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands except per share amounts)
THREE MONTHS ENDED
MARCH 31,
- -----------------------------------------------------------------
1996 1995
- -----------------------------------------------------------------
(unaudited)
<S> <C> <C>
OPERATING REVENUES $ 61,190 $ 47,975
- -----------------------------------------------------------------
COSTS AND EXPENSES:
Operating expenses 30,831 31,911
Depreciation 7,568 7,433
General and administrative 4,590 4,081
- -----------------------------------------------------------------
Total costs and expenses 42,989 43,425
- -----------------------------------------------------------------
OPERATING INCOME 18,201 4,550
- -----------------------------------------------------------------
OTHER INCOME (EXPENSE):
Interest expense (2,781) (3,814)
Interest income 499 425
Other, net (96) (210)
- -----------------------------------------------------------------
Total other income (expense) (2,378) (3,599)
- -----------------------------------------------------------------
INCOME BEFORE INCOME TAX EXPENSE
AND MINORITY INTEREST 15,823 951
INCOME TAX EXPENSE 1,093 1,163
MINORITY INTEREST (1,258) (157)
- -----------------------------------------------------------------
NET INCOME (LOSS) 13,472 (369)
DIVIDEND ON PREFERRED STOCK 1,213 1,215
- -----------------------------------------------------------------
NET INCOME (LOSS) APPLICABLE
TO COMMON STOCKHOLDERS $ 12,259 $ (1,584)
=================================================================
NET INCOME (LOSS) PER COMMON SHARE $ .20 $ (.03)
=================================================================
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING 61,966 59,713
=================================================================
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<TABLE>
<CAPTION>
READING & BATES CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
(unaudited)
- -------------------------------------------------------------------
3/31/96 12/31/95
- -------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Cash and cash equivalents $ 30,166 $ 36,171
Other current assets 69,730 59,617
Net property and equipment 525,383 505,605
Other assets 3,326 4,387
- -------------------------------------------------------------------
TOTAL ASSETS $ 628,605 $ 605,780
===================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities $ 57,324 $ 54,490
Long-term obligations 96,283 95,040
Other noncurrent liabilities 61,999 54,695
Minority interest 42,100 44,504
Stockholders' equity 370,899 357,051
- -------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 628,605 $ 605,780
===================================================================
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