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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10 - K/A-2
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 (FEE REQUIRED)
For the fiscal year ended March 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from _____________________ to ____________________
Commission File Number 1-13570
J. RAY McDERMOTT, S.A.
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(Exact name of registrant as specified in its charter)
REPUBLIC OF PANAMA 72-1278896
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1450 POYDRAS STREET
NEW ORLEANS, LOUISIANA 70112-6050
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(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, including area code (504) 587-5300
--------------
Securities Registered Pursuant to Section 12(b) of the Act:
Name of each Exchange
Title of each class on which registered
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Common Stock, $0.01 par value New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities and Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
YES [X] NO [ ]
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to
this Form 10-K.
[X]
The aggregate market value of voting stock held by non-affiliates of the
registrant was $305,343,980 as of April 23, 1996.
The number of shares outstanding of the Company's Common Stock at April 23,
1996 was 40,197,946.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Proxy Statement to be filed with the Securities and Exchange
Commission pursuant to Regulation 14A under the Securities Exchange Act of 1934
in connection with the Company's 1996 Annual Meeting of Stockholders are
incorporated by reference into Part III hereof.
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J. RAY McDERMOTT, S.A.
INDEX TO FINANCIAL STATEMENT SCHEDULES AND EXHIBITS
<TABLE>
<CAPTION>
Page
<S> <C>
Report of Independent Auditors 2
Financial Statement Schedule Covered by Report of Independent Auditors:
I Condensed Financial Information of Registrant 3
Signature of Registrant 9
</TABLE>
All schedules other than the above have been omitted because they are not
required or the information is included in the Consolidated Financial
Statements, Notes thereto or in the Form 10-K/A-1 filed on June 18, 1996.
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REPORT OF INDEPENDENT AUDITORS
The Board of Directors and Stockholders
J. Ray McDermott, S.A.
We have audited the consolidated financial statements of J. Ray McDermott, S.A.
as of March 31, 1996 and 1995, and for each of the three years in the period
ended March 31, 1996, and have issued our report thereon dated May 15, 1996.
Our audits also included the financial statement schedule listed in the Index
to Financial Statement Schedules and Exhibits in this Form 10-K/A-2. This
schedule is the responsibility of the Company's management. Our responsibility
is to express an opinion based on our audits.
In our opinion, the financial statement schedule referred to above, when
considered in relation to the basic financial statements taken as a whole,
presents fairly in all material respects the information set forth therein.
ERNST & YOUNG LLP
New Orleans, Louisiana
May 15, 1996
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<PAGE> 4
Schedule I
J. RAY McDERMOTT, S.A.
(PARENT COMPANY ONLY)
BALANCE SHEET
MARCH 31, 1996 AND 1995
<TABLE>
<CAPTION>
ASSETS
1996 1995
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(In thousands)
<S> <C> <C>
Current Assets:
Cash and cash equivalents $ 58,077 $ 11,776
Accounts receivable - trade 2,656 2,888
Accounts receivable - other 12,437 25,534
Accounts receivable from subsidiaries 84,038 121,023
Contracts in progress 1,280 12,478
Other current assets - 2,944
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Total Current Assets 158,488 176,643
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Investments in Subsidiaries and
Other Investees, at Equity 525,095 510,524
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Property, Plant and Equipment, at Cost:
Buildings 8,066 8,066
Machinery and equipment 52,924 60,649
Property under construction 4,160 2,729
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65,150 71,444
Less accumulated depreciation 51,462 55,112
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Net Property, Plant and Equipment 13,688 16,332
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Notes Receivable from Subsidiaries 155,149 283,487
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Other Assets 39,573 37,193
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TOTAL $ 891,993 $ 1,024,179
==============================================================================================
</TABLE>
See accompanying notes to condensed financial information.
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<PAGE> 5
Schedule I
<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
1996 1995
---- ----
(In thousands)
<S> <C> <C>
Current Liabilities:
Note payable to McDermott International $ - $ 39,750
Accounts payable 5,821 7,134
Accounts payable to McDermott International 19,134 57,405
Accrued liabilities - other 25,171 29,114
Advance billings on contracts 1,605 6,462
Income taxes 2,288 5,565
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Total Current Liabilities 54,019 145,430
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Note Payable to McDermott International 231,000 231,000
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Notes Payable to Subsidiaries 28,614 65,420
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Deferred and Non-Current Income Taxes 9,853 12,536
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Other Liabilities 14,610 10,322
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Contingencies
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Stockholders' Equity:
Preferred stock 32 37
Common stock 402 386
Capital in excess of par value 581,609 580,279
Deficit (14,576) (6,598)
Currency translation adjustments (13,570) (14,633)
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Total Stockholders' Equity 553,897 559,471
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TOTAL $ 891,993 $ 1,024,179
==============================================================================================
</TABLE>
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<PAGE> 6
Schedule I
J. RAY McDERMOTT, S.A.
(PARENT COMPANY ONLY)
STATEMENT OF INCOME
FOR THE THREE FISCAL YEARS ENDED MARCH 31, 1996
<TABLE>
<CAPTION>
1996 1995 1994
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(In thousands)
<S> <C> <C> <C>
Revenues $ 24,002 $ 74,247 $ 43,111
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Costs and Expenses:
Cost of operations (excluding depreciation
and amortization) 6,283 75,816 37,241
Depreciation and amortization 5,678 3,045 3,125
Selling, general and administrative expenses 27,401 15,111 31,966
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39,362 93,972 72,332
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Operating Loss before Equity in Income
of Investees (15,360) (19,725) (29,221)
Equity in Income of Subsidiaries
and Other Investees 29,877 73,860 130,293
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Operating Income 14,517 54,135 101,072
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Other Income (Expense):
Interest income 17,749 7,988 260
Interest expense (28,533) (6,734) (103)
Other - net (3,295) 8,008 (612)
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(14,079) 9,262 (455)
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Income before Provision for (Benefit from)
Income Taxes and Cumulative Effect of
Accounting Change 438 63,397 100,617
Provision for (Benefit from) Income Taxes 251 2,697 (18,520)
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Income before Cumulative Effect of
Accounting Change 187 60,700 119,137
Cumulative Effect of Accounting Change - (1,326) -
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Net Income $ 187 $ 59,374 $ 119,137
====================================================================================================
</TABLE>
See accompanying notes to condensed financial information
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<PAGE> 7
Schedule I
J. RAY McDERMOTT, S.A.
(PARENT COMPANY ONLY)
STATEMENT OF CASH FLOWS
FOR THE THREE FISCAL YEARS ENDED MARCH 31, 1996
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
<TABLE>
<CAPTION>
1996 1995 1994
--- ---- ----
(In thousands)
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 187 $ 59,374 $ 119,137
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Adjustments to reconcile net income to net
cash provided by (used in) operating
activities:
Depreciation and amortization 5,678 3,045 3,125
Equity in income of subsidiaries and
other investees, less dividends (15,787) (73,860) (130,293)
Benefit from deferred taxes (17) (149) (8,194)
Other (171) 1,303 (343)
Changes in assets and liabilities:
Net contracts in progress and advance
billings 6,341 21,740 (13,081)
Accounts and notes receivable 50,314 4,600 139,860
Accounts payable (58,791) 42,980 (197,921)
Income taxes (5,943) 5,138 18,073
Other, net 385 (6,387) 48,336
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NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES (17,804) 57,784 (21,301)
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CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale and disposal of assets 325 26 365
Purchases of property, plant and equipment (2,121) (3,153) (2,109)
Decrease in loans to subsidiaries 127,438 - -
Other (452) (375) -
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NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES 125,190 (3,502) (1,744)
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</TABLE>
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<PAGE> 8
CONTINUED
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
<TABLE>
<CAPTION>
1996 1995 1994
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(In thousands)
<S> <C> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
Decrease in short-term borrowing $ - $ - $ (775)
Issuance of common stock 4,197 430 -
Increase (decrease) in notes payable
to McDermott International (20,542) - 58,040
Distributions to McDermott International - (46,249) (30,295)
Decrease in notes payable to subsidiaries (36,807) - -
Dividends paid (7,928) (900) -
Other (5) - -
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NET CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES (61,085) (46,719) 26,970
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EFFECTS OF EXCHANGE RATE CHANGES ON CASH - - (92)
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NET INCREASE IN CASH AND CASH
EQUIVALENTS 46,301 7,563 3,833
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CASH AND CASH EQUIVALENTS AT BEGINNING
OF YEAR 11,776 4,213 380
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CASH AND CASH EQUIVALENTS AT END
OF YEAR $ 58,077 $ 11,776 $ 4,213
====================================================================================================
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest, including intercompany
interest (net of amount capitalized) $ 29,030 $ 5,380 $ 104
Income taxes, net of refunds $ 1,138 $ 821 $ 344
====================================================================================================
</TABLE>
See accompanying notes to condensed financial information.
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<PAGE> 9
Schedule I
J. RAY McDERMOTT, S.A.
(PARENT COMPANY ONLY)
NOTES TO CONDENSED FINANCIAL INFORMATION
FOR THE THREE FISCAL YEARS ENDED MARCH 31, 1996
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NOTE 1 - BASIS OF PRESENTATION
The accompanying financial statements have been prepared to present the
unconsolidated financial position, results of operations and cash flows of J.
Ray McDermott, S.A. (Parent Company Only). Investments in subsidiaries and
other investees are stated at cost plus equity in undistributed earnings from
date of acquisition. These Parent Company Only financial statements should be
read in conjunction with J. Ray McDermott, S.A. consolidated financial
statements.
NOTE 2 - CONTINGENCIES
J. Ray McDermott, S.A. is contingently liable under standby letters of credit
totaling $79,420,362 at March 31, 1996 issued in the normal course of
business.
J. Ray McDermott, S.A. has guaranteed the indebtedness of certain of its
subsidiaries and other investees. At March 31, 1996, these guarantees included
$101,162,000 of loans to and $26,518,000 of standby letters of credit issued by
certain subsidiaries and other investees.
NOTE 3 - DIVIDENDS RECEIVED
J. Ray McDermott, S.A. received dividends from its consolidated subsidiaries of
$14,090,000, for the year ended March 31, 1996.
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<PAGE> 10
SIGNATURE OF THE REGISTRANT
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to be signed on its behalf by the
undersigned, thereunto duly authorized.
J. RAY McDERMOTT, S.A.
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(REGISTRANT)
By: s/Daniel R. Gaubert
----------------------
Daniel R. Gaubert
Vice President, Finance
and Controller
July 25, 1996
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