During the three months ended March 31, 2016, we repurchased, through open market transactions, $13.5 million aggregate principal of our Senior Notes at an aggregate cost of $5.1 million, including a minimal amount of accrued interest, representing an average discount of 62.2%. As a result of the repurchases, we recognized a gain on debt retirement, net of the related debt issuance costs, of $8.4 million (or $0.13 per diluted share) in Gains on extinguishment of debt on the Condensed Consolidated Statement of Operations for the three and six months ended March 31, 2016. In April 2016, we completed additional repurchases of $140.7 million aggregate principal amount of our Senior Notes for $94.0 million, including $2.3 million of accrued interest, representing an average discount of 34.8%.
These repurchases, both in the period ended March 31, 2016 and in April 2016, allowed us to reduce our outstanding indebtedness and related interest expense at a significant discount to the face value of our Senior Notes. The gain associated with the repurchases is subject to tax and will increase our effective tax rate. However, due to the availability of operating loss carry-forwards the actual cash tax impact will be minimal. The repurchases were made using available cash balances. Following these repurchases, the Company has $495.8 million Senior Notes outstanding.
On April 13, 2016, the Atwood Falcon sale and recycling transaction closed and title of the vessel and associated equipment and machinery transferred to the buyer. The estimated loss on sale of the Atwood Falcon of $0.7 million is recognized in the three and six months ended March 31, 2016.
For the Three Months Ended (Unaudited) March 31, December 31, March 31,(In thousands, except per share amounts)
2016 2015
2015Revenues | $ 296,351 | $ 307,819 | $ 350,387 |
Income before Income Taxes | 136,426 | 50,295 | 134,976 |
Provision for Income Taxes (13,989) | (11,214) | (12,307) |
Basic $ 1.89 | $ 0.60 | $ 1.90 |
Net Income $ 122,437 $ 39,081 $ 122,669 Earnings per Common Share -
Diluted $ 1.89 $ 0.60 $ 1.89
For the Six Months Ended (Unaudited)(In thousands, except per share amounts)
March 31,2016
March 31, 2015Revenues $ 604,170 $ 702,113
Income before Income Taxes 186,721 190,316
Provision for Income Taxes | (25,203) | (21,429) |
Net Income $ 161,518 $ 168,887
Earnings per Common Share -
Basic | $ 2.49 | $ 2.62 |
Diluted $ 2.49 $ 2.60
ATWOOD OCEANICS, INC. AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSRevenues related to reimbursable expenses 13,805 | 11,766 | 27,009 | 26,731 |
Contract drilling 89,918 | 131,124 | 220,570 | 267,589 |
Depreciation 41,053 | 42,528 | 83,880 | 87,103 |
Asset impairment 708 | - | 65,432 | 60,777 |
Other, net (1,137) | - | (1,060) | - |
(In thousands, except per share amounts) | 2016 2015 2016 | 2015 |
REVENUES: | ||
Contract drilling | $ 282,546 $ 338,621 $ 577,161 | $ 675,382 |
Total revenues | 296,351 | 350,387 | 604,170 | 702,113 |
COSTS AND EXPENSES: Reimbursable expenses General and administrative Loss on sale of assets | 9,123 11,488 77 151,230 | 8,661 14,737 5,529 202,579 | 17,409 26,665 77 412,973 | 20,568 32,146 15,335 483,518 |
OPERATING INCOME | 145,121 | 147,808 | 191,197 | 218,595 |
OTHER INCOME (EXPENSE): | ||||
Interest income | 6 | 15 | 10 | 72 |
Other income | - | - | 17,976 | - |
(8,695) | (12,832) | (4,476) | (28,279) | |
PROVISION FOR INCOME TAXES | 13,989 | 12,307 | 25,203 | 21,429 |
EARNINGS PER COMMON SHARE | |||
(NOTE 2): |
Interest expense, net of capitalized interest (17,098) | (12,847) | (30,859) | (28,351) |
Gains on extinguishment of debt 8,397 | - | 8,397 | - |
INCOME BEFORE INCOME TAXES 136,426 | 134,976 | 186,721 | 190,316 |
NET INCOME $ 122,437 | $ 122,669 | $ 161,518 | $ 168,887 |
Basic $ 1.89 $ 1.90 $ 2.49 $ 2.62
Diluted $ 1.89 | $ 1.89 | $ 2.49 | $ 2.60 |
Basic 64,781 | 64,620 | 64,739 | 64,513 |
Diluted 64,825 65,048 64,870 65,031
ATWOOD OCEANICS, INC. AND SUBSIDIARIES UNAUDITED ANALYSIS OF REVENUES AND DRILLING COSTS REVENUES Three Months Ended Six Months Ended(In millions) | March 31, 2016 | December 31, 2015 | March 31, 2015 | March 31, 2016 | March 31, 2015 |
Ultra-Deepwater | $ 189 | $ 182 | $ 183 | $ 371 | $ 350 |
Deepwater | 59 | 72 | 82 | 131 | 181 |
Jackups 34 | 41 | 73 | 75 | 145 |
$ 296 | $ 308 | $ 350 | $ 604 | $ 702 |
(In millions) | March 31, 2016 | December 31, 2015 | March 31, 2015 | March 31, 2016 | March 31, 2015 |
Ultra-Deepwater | $ 54 | $ 61 | $ 68 | $ 115 | $ 131 |
Deepwater | 19 | 43 | 32 | 62 | 73 |
Jackups 19 | 26 | 30 | 45 | 61 |
Other (2) | 1 | 1 | (1) | 2 |
Atwood Oceanics Inc. published this content on 05 May 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 05 May 2016 21:56:06 UTC.
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