EARNINGS / National-Oilwell reports 1997 results
HOUSTON, TX., Feb. 2 /CNW/ - National-Oilwell, Inc. (NYSE:NOI) today
announced 1997 revenues and operating income before special charges of
$1,005.6 million and $97.9 million versus $761.8 million and $44.1 million in
1996. Excluding special charges and the extraordinary write-off of deferred
debt costs in each year, net income in 1997 was $59.4 million ($1.14 per
share) compared to $20.4 million ($0.50 per share) in 1996. Net income was
$50.7 million ($0.98 per share) in 1997 and $6.1 million ($0.15 per share) in
1996 after special charges and extraordinary write-offs.
For the fourth quarter of 1997, revenues and operating income were $299.9
million and $34.6 million, compared to $200.8 million and $13.4 million before
special charges for the comparable 1996 period. Net income in the fourth
quarter of 1997 was $21.1 million ($0.41 per share) compared to $7.4 million
($0.16 per share) excluding special and extraordinary items in 1996. After
special and extraordinary items, the Company reported a loss in the fourth
quarter of 1996 of $6.9 million ($0.15 per share).
Special charges of $10.7 million ($8.1 million after tax) were recorded
in the third quarter of 1997 related to the acquisition of Dreco Energy
Services Ltd. Special charges of $16.6 million ($10.3 million after tax) were
recorded in the fourth quarter of 1996 in connection with the Company's
initial public offering. Extraordinary write-offs in each year resulted from
the write-off of deferred debt costs incurred in connection with the replaced
credit facility.
Joel Staff, Chairman, President and CEO, stated ''The financial
performance of each of our segments in 1997 was exceptional, contributing to
our consolidated revenues exceeding $1 billion. Exclusive of the one-time
merger and extraordinary charges recorded at the time of the acquisition of
Dreco Energy Services, net income exceeded $59 million, representing a 25%
after tax return on average equity.
The Products and Technology segment generated a 106% increase in 1997
operating income. The construction of new rigs and the refurbishment and
upgrading of existing rigs for both onshore and offshore applications has
dramatically increased demand for our oilfield machinery and equipment. In
spite of increasing deliveries, our backlog has continued to grow, reaching
$270 million at the end of 1997 compared to $38 million just one year ago.
Clearly our internal expansion and aggressive acquisition efforts have
positioned this segment for the future.
The Downhole Products and Distribution Services segments also generated
strong results, with year over year revenue increases of 141% and 22%,
respectively. Improvements in operating income in these segments also helped
our consolidated operating income before special items to increase by 122%
over the prior year to $97.9 million.''
National-Oilwell is a worldwide leader in the design, manufacture and
sale of machinery, equipment and downhole tools used in oil and gas drilling
and production, as well as in the distribution to the oil and gas industry of
maintenance, repair and operating products.
Statements made in this press release that are forward-looking in nature
are intended to be ''forward-looking statements'' within the meaning of
Section 21E of the Securities Exchange Act of 1934 and may involve risks and
uncertainties. These statements may differ materially from actual future
events or results. Readers are referred to documents filed by the Company with
the Securities and Exchange Commission, including the Annual Report on Form
10-K, which identify significant risk factors which could cause actual results
to differ from those contained in the forward-looking statements.
The following table sets forth comparative data (in thousands, except per
share data):
<<
Quarter Ended Year Ended
December 31 December 31
------------- -----------
1997 1996 1997 1996
---- ---- ---- ----
Revenues $ 299,853 $ 200,793 $ 1,005,572 $ 761,816
Operating income
before special charges 34,559 13,442 97,899 44,110
Income before
extraordinary item 21,070 (2,911) (b) 51,281 (a) 10,147 (b)
Extraordinary item - (4,000) (c) (623)(c) (4,000)(c)
Net income 21,070 (6,911) (b) 50,658 (a) 6,147 (b)
Net income per share (d)
Basic
Net Income excluding special
and extraordinary
items $ 0.41 $ 0.17 $ 1.16 $ 0.51
Income before
extraordinary item 0.41 (0.07) 1.00 0.25
Net income 0.41 (0.15) 0.99 0.15
Diluted
Net income excluding special
and extraordinary
items $ 0.41 $ 0.16 $ 1.14 $ 0.50
Income before
extraordinary item 0.41 (0.06) 0.99 0.25
Net Income 0.41 (0.15) 0.98 0.15
Average shares outstanding(x)
Basic 51,550 44,680 51,124 40,018
Diluted 51,916 45,320 51,956 40,553
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(x) Assumes exchange of all Dreco Exchangeable Shares
(a) includes net special charge of $8.1 million
(b) includes net special charge of $10.3 million
(c) from write-off of deferred debt costs
(d) adjusted for two-for-one stock split paid November 18, 1997 |
