Wednesday July 22, 8:32 am Eastern Time
Company Press Release
SOURCE: Marine Drilling Companies, Inc.
Marine Drilling Companies, Inc. Announces Another Quarter of Record Profits And New York Stock Exchange Listing
SUGAR LAND, Texas, July 22 /PRNewswire/ -- Marine Drilling Companies, Inc. (Nasdaq: MDCO - news) today reported second quarter net income increased 51 percent to $20.1 million, or $0.38 per share on a diluted basis, compared with $13.3 million, or $0.25 per share on a diluted basis, a year earlier. Revenues for the quarter ended June 30, 1998, rose 44 percent to $64.1 million from $44.5 million for the prior-year period. The improvements were the result of a $10,300 increase in average daily revenue coupled with additional marketable rigs throughout the second quarter. The Marine 15 was deployed during the second quarter of 1997, the Marine 305 was deployed during the third quarter 1997, and the Marine 510 (formerly Kan Tan 3) was deployed during the second quarter 1998.
For the six months ended June 30, 1998, net income rose 57% to $36.9 million, or $0.70 per share on a diluted basis, versus $23.5 million, or $0.45 per share on a diluted basis, for the prior year's six-month period. Year-to-date revenues increased to $121.6 million from $81.2 million last year.
Contract drilling expenses for the second quarter of 1998 increased to $25.2 million from $18.6 million for the corresponding prior year quarter. The increase was primarily attributable to a 148-day increase in operating days, which includes 131 additional days related to the Marine 305 and Marine 510, both of which are incurring higher average operating costs because of their foreign locations.
Jan Rask, president and chief executive officer of Marine, said, ''We are very pleased with our record results. Regarding the future outlook, reduced oil prices are currently creating lower day rates and utilization in the shallow-water Gulf of Mexico market. However, due to our strong balance sheet, which still includes no debt, coupled with our long-term deep-water contracts, we remain encouraged about the future outlook.''
Marine also announced that it had completed filing for listing of its common stock on the New York Stock Exchange (NYSE). The company's stock will begin trading Aug. 14, 1998, under the symbol MRL. The company's stock will cease trading on Nasdaq at the close of market on Aug. 13, 1998.
In announcing the company's move to the NYSE, Rask said, ''We are pleased to join the list of distinguished companies on the NYSE. We are excited about our move to the NYSE and the benefits we believe it offers to our shareholders, including improved pricing, greater liquidity and reduced volatility. Although we have enjoyed an excellent relationship with Nasdaq, this move should enhance our visibility and broaden our investor base.''
Marine Drilling Companies, Inc. is a significant offshore drilling contractor with a fleet of 16 offshore drilling rigs consisting of 14 jackups and two semi-submersibles operating in the U.S. Gulf of Mexico, India and Southeast Asia. Additionally, the company operates one additional semi- submersible through a long-term bare boat charter agreement and has agreed to acquire an additional jack-up rig.
This press release includes certain statements that may be deemed to be ''forward-looking statements'' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities or events the company believes will or may occur in the future are forward-looking statements. Such statements are subject to a number of uncertainties that are discussed in the company's most recent Forms 10-K and 10-Q. Investors are cautioned that actual results may differ materially from those projected in the forward-looking statements.
MARINE DRILLING COMPANIES, INC.
SUMMARY FINANCIAL AND OPERATING DATA
(Dollars in thousands, except share and rig operating data)
(Unaudited)
Three Months Ended Six Months Ended
CONDENSED CONSOLIDATED June 30, June 30,
STATEMENTS OF OPERATIONS 1998 1997 1998 1997
Revenues $64,141 $44,486 $121,605 $81,236
Costs and Expenses:
Contract drilling 25,153 18,557 49,206 35,033
Depreciation and
amortization 5,134 4,047 10,167 7,628
General and administrative 2,990 2,007 5,890 3,788
33,277 24,611 65,263 46,449
Operating income 30,864 19,875 56,342 34,787
Interest expense (153) (71) (239) (421)
Interest income 551 669 1,088 1,726
Other, net 207 47 477 87
Other income (expense), net 605 645 1,326 1,392
Income before income taxes 31,469 20,520 57,668 36,179
Income tax expense 11,360 7,182 20,801 12,663
Net income $20,109 $13,338 $36,867 $23,516
Earnings per share:
Basic $0.38 $0.26 $0.71 $0.46
Diluted $0.38 $0.25 $0.70 $0.45
Average common shares:
Basic 52,239,699 51,408,251 52,113,910 51,369,324
Diluted 52,931,535 52,604,369 52,765,215 52,551,547
OPERATING DATA
Average revenue
per day (in thousands) $45.8 $35.5 $44.7 $34.2
Marketed rigs
(weighted average) 15.4 13.8 15.1 13.1
Utilization of
marketable rigs 99.6% 100.0% 98.9% 100.0%
Number of operating days 1,400 1,252 2,723 2,373
OTHER FINANCIAL DATA
EBITDA(A) $ 36,205 $ 23,969 $ 66,986 $42,502
Capital expenditures 42,142 71,185 66,352 84,111
(A) As used herein, "EBITDA" refers to earnings before interest, taxes,
depreciation and amortization of deferred financing costs.
MARINE DRILLING COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30, December 31,
1998 1997
ASSETS
Current Assets:
Cash and cash equivalents $ 45,958 $ 20,619
Accounts receivable, net 34,868 46,680
Other 4,256 5,048
85,082 72,347
Property and Equipment 376,570 310,122
Less accumulated depreciation 59,406 49,635
317,164 260,487
Other 3,610 1,348
Total Assets $ 405,856 $ 334,182
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued
expenses and other $ 38,847 $ 14,191
Current tax liability 3,775 2,113
Employer's liability claims, current 1,038 571
43,660 16,875
Employer's Liability Claims,
non-current and other 1,790 1,776
Deferred Income Taxes 24,001 18,090
Minority Interest in Subsidiary -- 1,699
Shareholders' Equity 336,405 295,742
Total Liabilities & Shareholders' Equity $ 405,856 $ 334,182
SOURCE: Marine Drilling Companies, Inc.
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