VRC .23, meets Zacks est. And great comments about orders and prospects. I wish I had bought more today. Oh well, maybe it will go down and I'll get more cheaper.
EDIT: Gee, almost as good an order backlog as FGII (that's not heresy since I have FGII too, Big Dog).
Company Press Release
SOURCE: Varco International, Inc.
Varco Announces First Quarter Results
ORANGE, Calif., April 16 /PRNewswire/ -- Varco International, Inc. (NYSE: VRC - news)
announced today that Net Income for the first quarter ended March 31 more than doubled from the
comparable year-ago period, to $15.0 million, $.23 per share (diluted), from $7.4 million, $.11 per share
(diluted), last year. Revenues totaled $150.2 million in the most recent quarter, 49 per cent above the
$101.1 million in the year-ago period. Incoming orders were also up sharply from the year-ago quarter,
totaling $286.5 million versus $140.3 million for the first three months of 1997.
The year-to-year increase in both orders and Revenues is reflected across each of the Company's
business units, and is attributable to the strength of the offshore drilling market in general, and a
continued emphasis on deep water drilling in particular. With utilization of the existing offshore fig fleet
near 100 per cent, new rigs are in the process of being built, principally deep water rigs. Each new rig
creates significant Revenue potential for Varco.
A continued increase in the number of new rigs committed, coupled with limitations on Varco's
manufacturing capacity, which is currently estimated at approximately $650-$700 million in annualized
Revenue, have caused order bookings to exceed Revenues for each of the past seven quarters.
Backlog at March 31, 1998 totaled $599.7 million, not including non-binding letters of intent totaling
$51.4 million, against which the Company has received $5.9 million in cash deposits. Backlog at March
31, 1997 was $226.2 million.
Set forth below are Revenues and orders for each of the Company's operating divisions for the
quarters ended March 31, 1998 and 1997.
Revenues Orders
1998 1997 1998 1997
(in thousands)
Drilling Systems $53,496 $26,528 $134,730 $39,751
Varco BJ Oil Tools 20,018 12,347 31,276 23,503
M/D Totco 23,609 16,565 31,951 20,778
Shaffer 47,212 43,117 80,531 54,178
Rigtech 5,408 2,427 8,038 2,137
149,743 100,984 286,526 140,347
In discussing the first quarter results, Varco's Chief Executive Officer George Boyadjieff said, ''The
offshore market remains strong and our customers are continuing to invest in upgrading their existing
rigs as well as building new rigs. As a result, we continue to experience rapid growth in orders and
revenues, and improved financial results. Despite the oil price weakness which began late last year,
this segment of the market has not demonstrated significant signs of slowing.''
QUARTER ENDED MARCH 31 1998 1997
(in $000's except per Share)
Revenues $150,191 $101,071
Income Before Income Taxes 22,760 11,506
Net Income 14,985 7,384
Basic Income Per Share .23 .12
Shares Used to Calculate
Per Share Amounts 64,240 63,253
Diluted Income Per Share .23 .11
Shares Used to Calculate
Per Share Amounts 65,662 64,770
Varco International, Inc. is a leader in the design and manufacture of drilling equipment and machinery
and rig instrumentation for oil and gas well drilling worldwide. |
