Marine Drilling Companies, Inc. Announces 1st Quarter Financial Results
PR Newswire - April 27, 1999 08:46
SUGAR LAND, Texas, April 27 /PRNewswire/ -- Marine Drilling Companies, Inc. (the "Company") (NYSE: MRL) today reported a first quarter net loss of $4.8 million, or $0.09 per share, on revenues of $19.8 million, compared to net income of $16.8 million, or $0.32 per share, on revenues of $57.5 million for the same period in 1998. Average daily revenue and rig utilization for the quarter ended March 31, 1999 decreased to $24,508 per operating day and 56 percent, respectively compared to $43,440 per operating day and 98 percent, respectively for the first quarter of 1998.
Jan Rask, president and chief executive officer of Marine, said, "Reduced exploration and production spending continues to negatively effect our contract rates and rig utilization. Although we are encouraged by the recent increases in oil and gas prices, we do not anticipate any significant improvement in contract rates and rig utilization until some stability in commodity prices has been sustained."
Marine Drilling Companies, Inc. is an offshore drilling contractor with a fleet of 17 offshore drilling rigs consisting of 15 jackups and two semi- submersibles located in the U.S. Gulf of Mexico and internationally. The company also operates one additional semi-submersible rig under a long-term bare boat charter agreement.
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
(In thousands, except per share and rig operating data)
(Unaudited)
1999 1998
Condensed Consolidated Statements
of Operations
Revenues $19,827 $ 57,464
Costs and Expenses:
Contract drilling 17,572 24,053
Depreciation and amortization 4,728 5,033
General and administrative 3,475 2,900
Total 25,775 31,986
Operating income (loss) (5,948) 25,478
Interest expense (113) (86)
Interest income 143 537
Other, net (45) 270
Other income (expense),
Total (15) 721
Income (loss) before income taxes (5,963) 26,199
Income tax expense (benefit) (1,195) 9,441
Net income (loss) $(4,768) $16,758
Earnings (loss) per share:
Basic $(0.09) $0.32
Diluted $(0.09) $0.32
Average common shares:
Basic 52,402 51,987
Diluted 52,402 52,600
Operating Data
Average revenue per day (in thousands) $24.5 $43.4
Marketed rigs (weighted) 16.0 14.7
Utilization of marketable rigs 56% 98%
Number of operating days 809 1,323
Other Financial Data
EBITDA (A) $(1,265) $30,781
Capital expenditures 70,407 24,210
(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)
March 31, December 31,
1999 1998
ASSETS
Current Assets:
Cash and cash equivalents $29,265 $12,576
Accounts receivable, net 14,057 23,176
Other 1,682 3,869
Total 45,004 39,621
Property and Equipment 570,843 500,510
Less accumulated depreciation 73,553 68,881
Total 497,290 431,629
Other 4,210 4,434
Total Assets $546,504 $475,684
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and
accrued expenses and other $38,919 $29,594
Current tax liability -- 2,558
Employer's liability claims, current 863 770
Total 39,782 32,922
Long-Term Debt 120,000 50,000
Employer's Liability Claims,
non-current and other 1,598 2,046
Deferred Income Taxes 27,201 29,128
Minority Interest in
Subsidiary -- --
Shareholders' Equity 357,923 361,588
Total Liabilities &
Shareholders' Equity $546,504 $475,684
SOURCE Marine Drilling Companies, Inc.
/CONTACT: T. Scott O'Keefe, Sr. Vice President & CFO of Marine Drilling,
281-243-3000/
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