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 16, 1997
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 (281) 496-5000
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit 99 - Press Release dated April 15, 1997 - Reading & Bates
announces first quarter 1997 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
(Principal Financial and
Accounting Officer)
Dated: April 16, 1997
EXHIBIT 99
For additional information, please contact: Mr. Charles R. Ofner
(281) 496-5000
RB Reports Favorable First Quarter 1997 Results
April 15, 1997, Houston, Texas ........ Reading & Bates Corporation
(RB-NYSE) reported net income of $21.9 million ($.30 net income per share)
for the three months ended March 31, 1997, compared with net income of $13.5
million ($.20 net income per share after preferred stock dividends of $1.2
million) for the three months ended March 31, 1996. Operating income for the
quarter ended March 31, 1997 was $31.2 million on revenues of $83.4 million,
compared to operating income for the quarter ended March 31, 1996 of $18.2
million on revenues of $61.2 million. The $13.0 million improvement to
operating income is largely attributable to increased revenues as a result of
improved dayrates as well as the addition of two vessels to the fleet.
Average utilization for the three months ended March 31, 1997 was 94%
compared to 95% for the three months ended March 31, 1996.
Paul B. Loyd, Jr. the Company's Chairman, President and CEO, said,
"Although we are very pleased with our first quarter 1997 operational
performance, reported results reflect the fact that the "M. G. HULME, JR."
spent approximately 80 days drilling on the East Breaks 688 "East Boomvang"
prospect for the Company's wholly owned subsidiary, Reading & Bates
Development Co. which reduced reported current income by approximately $5.8
million as compared to the rig working at market rates for a third party
client. Although current reported income was reduced, we are pleased with
the results of the Boomvang well this quarter and believe we are building
long term shareholder value. We remain confident that our strategy of
developing key investment alternatives and obtaining equity interest in oil
and gas fields by employing synergies with our high specification fleet and
TOPS (our field development joint venture) is progressing well. We are
confident that this investment strategy will truly benefit our customers and
shareholders. First quarter 1997 earnings were reduced for approximately
$2.5 million related to the "JACK BATES" casualty and 36 days downtime
related to the "J. W. MCLEAN" upgrade which equates to an approximate $3.6
million reduction in current reported operating revenue."
Reading & Bates is a New York Stock Exchange listed company, providing
offshore drilling services throughout the world. Its wholly owned
subsidiary, Reading & Bates Development Co., engages in the business of
acquiring interests in offshore oil and gas properties and thereby
participates in reservoir risk sharing. Through its TOPS joint venture, a
full range of field development contracting alternatives is offered to oil
and gas companies, including such services as drilling, marine and subsea
construction and production facilities.
(financial highlights to follow)
READING & BATES CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands except per share amounts)
THREE MONTHS ENDED
MARCH 31,
- ------------------------------------------------------------------------
1997 1996
- ------------------------------------------------------------------------
OPERATING REVENUES $ 83,431 $ 61,190
- ------------------------------------------------------------------------
COSTS AND EXPENSES:
Operating expenses 36,514 30,831
Depreciation 9,852 7,568
General and administrative 5,848 4,590
- ------------------------------------------------------------------------
Total costs and expenses 52,214 42,989
- ------------------------------------------------------------------------
OPERATING INCOME 31,217 18,201
- ------------------------------------------------------------------------
OTHER INCOME (EXPENSE):
Interest expense, net of capitalized interest (3,529) (2,781)
Interest income 847 499
Other, net (292) (96)
- ------------------------------------------------------------------------
Total other income (expense) (2,974) (2,378)
- ------------------------------------------------------------------------
INCOME BEFORE INCOME TAX EXPENSE
AND MINORITY INTEREST 28,243 15,823
- ------------------------------------------------------------------------
INCOME TAX EXPENSE:
Current 1,492 1,093
Deferred 1,567 -
- ------------------------------------------------------------------------
Total income tax expense 3,059 1,093
- ------------------------------------------------------------------------
MINORITY INTEREST (3,271) (1,258)
- ------------------------------------------------------------------------
NET INCOME 21,913 13,472
DIVIDEND ON PREFERRED STOCK - 1,213
- ------------------------------------------------------------------------
NET INCOME APPLICABLE
TO COMMON STOCKHOLDERS $ 21,913 $ 12,259
========================================================================
NET INCOME PER COMMON SHARE $ .30 $ .20
========================================================================
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING 72,008 61,966
========================================================================
(more)
READING & BATES CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
- -------------------------------------------------------------------------
3/31/97 12/31/96
- -------------------------------------------------------------------------
ASSETS:
Cash, cash equivalents and short-term investments $ 55,282 $ 59,089
Other current assets 94,280 81,001
Net property and equipment 682,895 657,629
Other assets 19,410 10,471
- -------------------------------------------------------------------------
TOTAL ASSETS $ 851,867 $ 808,190
=========================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities $ 59,213 $ 55,132
Long-term obligations 216,644 207,578
Other noncurrent liabilities 54,008 52,726
Minority interest 49,418 46,147
Stockholders' equity 472,584 446,607
- -------------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 851,867 $ 808,190
=========================================================================
# # #
