Rowan Companies, Inc. : Rowan Reports First Quarter 2012 Operating Results
05/02/2012| 08:55am US/Eastern
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HOUSTON, May 2, 2012 /PRNewswire/ -- For the three months ended March 31, 2012, Rowan Companies, Inc. ("Rowan" or the "Company") (NYSE: RDC) generated net income from continuing operations of $55.5 million or $0.45 per share, compared to $26.8 million or $0.21 per share in the first quarter of 2011. Net income totaled $49.5 million or $0.40 per share in the first quarter of 2012, compared to $32.1 million or $0.25 per share in the first quarter of 2011.
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Rowan's revenues were $333.5 million in the first quarter of 2012, up by 62% over the prior-year quarter due primarily to incremental activity from fleet additions and higher utilization of existing rigs between periods. The Company's operating income was $64.8 million in the first quarter of 2012, up by 81% over the prior-year quarter.
Costs and expenses during the first quarter of 2012 included $4.6 million of unusual or one-time items, or $0.02 per share after tax, from a write-down of the carrying value of steel remaining from a jack-up rig construction project cancelled in 2009 and transactional costs of the Company's corporate redomestication.
Matt Ralls, President and Chief Executive Officer, commented, "During the first quarter, we continued to see solid demand and increasing day rates for high specification jack-ups in most markets. We were pleased to increase our Southeast Asia presence with commitments for two additional rigs, which will bring us to four rigs in the region. Despite the short-term impact of rig relocations on operating results, we will continue to opportunistically redeploy our assets to maximize long-term returns.
"On the ultra-deepwater front, we are receiving very positive reactions from potential customers to our deepwater management team and the design of our drillships. Recent ultra deepwater contract fixtures have been very encouraging, and we remain confident in our decision to enter this market and in our ability to obtain attractive term contracts with customers seeking the superior operating capabilities these rigs will offer."
Rowan will conduct its earnings conference call on Wednesday, May 2, 2012, at 10:00 a.m. Central Time. Interested parties are invited to listen to the call by telephone or over the Internet. Individuals who wish to participate on the conference call by telephone can dial (877) 869-3847, or internationally (201) 689-8261. You should dial-in approximately five to 10 minutes prior to the scheduled start time. Alternatively, to access the online simulcast and rebroadcast of the conference call, please visit Rowan's website at www.rowancompanies.com. You should connect to our website at least 15 minutes prior to the conference call to register, download and install any necessary software.
Rowan Companies, Inc. is a major provider of international and domestic contract drilling services with a leading position in high-specification jack-up rigs. The Company's fleet of 31 jack-up rigs is located worldwide, including the Middle East, the North Sea, Trinidad, Southeast Asia and the Gulf of Mexico. Rowan will enter the ultra-deepwater market with three high-specification drillships expected to be delivered starting in late 2013. Rowan's stock is traded on the New York Stock Exchange under the symbol "RDC". For more information on Rowan, please visit www.rowancompanies.com.
This report contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements as to the expectations, beliefs and future expected financial performance of the Company that are based on current expectations and are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected by the Company. Among the factors that could cause actual results to differ materially include oil and natural gas prices, the level of offshore expenditures by energy companies, energy demand, the general economy, including inflation, weather conditions in the Company's principal operating areas and environmental and other laws and regulations, including changes in tax laws, whether our stockholders approve the merger (and related transactions) and whether we achieve the benefits we expect from the proposed change in our corporate structure. Other relevant factors have been disclosed in the Company's filings with the U.S. Securities and Exchange Commission.
ROWAN COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited (In Millions)
MARCH 31, DECEMBER
31,
2012 2011
---- ----
ASSETS
Cash and cash equivalents $342.5 $438.9
Restricted cash 10.6 -
Accounts receivable 331.3 283.6
Other current assets 66.9 71.6
Assets of discontinued operations 25.4 27.6
---- ----
Total current assets 776.7 821.7
Property, plant and equipment -
net 5,726.8 5,678.7
Other assets 97.8 97.4
---- ----
TOTAL $6,601.3 $6,597.8
======== ========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current maturities of long-term
debt $226.1 $45.0
Accounts payable 87.9 111.1
Other current liabilities 136.7 167.3
Liabilities of discontinued
operations 21.3 25.0
---- ----
Total current liabilities 472.0 348.4
Long-term debt 896.1 1,089.3
Other liabilities 851.7 834.1
Stockholders' equity 4,381.5 4,326.0
------- -------
TOTAL $6,601.3 $6,597.8
======== ========
ROWAN COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited (In Millions Except Per Share Amounts)
THREE MONTHS
ENDED MARCH 31
2012 2011
---- ----
REVENUES $333.5 $206.0
------ ------
COSTS AND EXPENSES:
Operations 182.1 111.3
Depreciation
and
amortization 59.0 38.1
Selling,
general and
administrative 23.1 20.8
Gain on
disposals
of property
and
equipment (0.1) -
Material
charge and
other
expenses 4.6 -
268.7 170.2
Total
INCOME FROM OPERATIONS 64.8 35.8
Net interest and other
income (expense) (9.8) (6.4)
INCOME BEFORE INCOME
TAXES 55.0 29.4
Provision (credit) for
income taxes (0.5) 2.6
NET INCOME FROM
CONTINUING OPERATIONS 55.5 26.8
Discontinued operations,
net of tax (6.0) 5.3
---- ---
NET INCOME $49.5 $32.1
===== =====
PER SHARE AMOUNTS:
Income from
continuing
operations $0.45 $0.21
=============
Discontinued
operations,
net of tax $(0.05) $0.04
=============
Net income $0.40 $0.25
===========
AVERAGE DILUTED SHARES 123.8 127.2
===== =====
ROWAN COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited (In Millions)
THREE MONTHS
ENDED MARCH 31
2012 2011
---- ----
CASH PROVIDED BY (USED
IN):
Operations:
Net income $49.5 $32.1
Adjustments to
reconcile net income
to net
cash provided by
operations:
Depreciation and
amortization 59.0 49.4
Deferred income taxes (0.1) 0.9
Gain on disposals of
assets (0.1) (2.0)
Other - net (7.7) (14.9)
Net changes in current
assets and
liabilities (50.5) 42.8
Net changes in other
noncurrent assets and
liabilities 13.1 5.6
Net cash provided by
operations 63.2 113.9
---- -----
Investing activities:
Property, plant and
equipment additions (138.1) (361.1)
Proceeds from disposals
of property, plant
and equipment 0.9 2.7
Increase in Restricted
cash (10.6) 0.4
Net cash used in
investing activities (147.8) (358.0)
------ ------
Financing activities:
Repayments of
borrowings (12.3) (12.3)
Proceeds from equity
compensation plans and
other 0.5 8.6
Net cash used in
financing activities (11.8) (3.7)
----- ----
DECREASE IN CASH AND
CASH EQUIVALENTS (96.4) (247.8)
CASH AND CASH
EQUIVALENTS, BEGINNING
OF PERIOD 438.9 437.5
CASH AND CASH
EQUIVALENTS, END OF
PERIOD $342.5 $189.7
====== ======
ROWAN COMPANIES, INC.
SUPPLEMENTAL OPERATING INFORMATION
Unaudited
THREE MONTHS ENDED
--------------------
March 31, December 31, March 31,
2012 2011 2011
---- ---- ----
OFFSHORE RIG DAYS:
Operating 2,088 1,810 1,477
Shipyard/
transit 300 444 576
Stacked and
other downtime 388 415 218
--------
Total available 2,776 2,669 2,271
Utilization 75% 68% 65%
========
AVERAGE DAY RATES (in
thousands):
Gulf of Mexico
rigs $118.2 $114.2 $118.2
Middle East
rigs 145.8 137.6 128.7
North Sea rigs 227.7 218.6 182.5
All offshore
rigs 156.5 149.9 136.4
SOURCE Rowan Companies, Inc.
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