HOUSTON, Feb. 27, 2015 /PRNewswire/ -- For the three
months ended December 31, 2014, Rowan
Companies plc ("Rowan" or the "Company") (NYSE: RDC) reported a net
loss of $326.9 million, or
$2.63 per share. The current
quarter includes a noncash asset impairment charge of $438.4 million (after tax), or $3.53 per share, relating to twelve of the
Company's oldest jack-up rigs. Excluding the impact of this
noncash asset impairment charge, net income was $111.5 million or $0.89 per share in the fourth quarter of
2014. Net income for the prior-year quarter was $49.7 million or $0.40 per share and included a noncash asset
impairment charge of $2.9 million
(after tax), or $0.02 per
share. Excluding the impact of the noncash asset impairment
charge, net income was $52.6 million
or $0.42 per share in the fourth
quarter of 2013.
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Rowan's revenues were $556.2
million in the fourth quarter of 2014, up 41% over the
prior-year quarter due primarily to the commencement of two of the
company's newbuild ultra-deepwater drillships, less out-of-service
time for jack-up rigs and slightly higher average day
rates.
Tom Burke, President and Chief
Executive Officer, commented, "I am pleased with our successful
entry into the ultra-deepwater market, with our second newbuild
ultra-deepwater drillship, the Rowan Resolute commencing
operations in the US Gulf of Mexico in October 2014 and our third newbuild drillship,
the Rowan Reliance, operating since early February 2015. In 2014, both our jack-up and
drillship fleet had excellent safety results and limited
operational downtime.
We believe that with our high-specification assets, strong
operational performance, continued cost control focus and financial
strength, we are in a good position to weather the current downturn
in our industry."
Rowan will conduct its earnings conference call on Friday, February 27, 2015, at 10:00 a.m. Central Time. Interested parties
are invited to listen to the call by telephone or over the
Internet. Individuals who wish to participate on the
conference call by telephone may dial (877) 869-3847, or
internationally (201) 689-8261. You should dial-in
approximately five to 10 minutes prior to the scheduled start
time. Alternatively, to access the online simulcast and
rebroadcast of the conference call, please visit Rowan's website at
www.rowancompanies.com. You should connect to our website at
least 15 minutes prior to the conference call to register, and
download any necessary software.
Rowan Companies plc is a global provider of contract drilling
services in the ultra-deepwater and shallow water jack-up market
with a fleet of 34 offshore drilling units, including four
ultra-deepwater drillships, one of which is currently under
construction, and 30 jack-up rigs, 19 of which are rated
high-specification. The Company's fleet is located worldwide,
including the United Kingdom and
Norwegian sectors of the North Sea, the Middle East, the United States Gulf of Mexico,
Southeast Asia, West and
North Africa and Trinidad.
All four of the Company's ultra-deepwater drillships are now under
long-term contracts. The Company's Class A Ordinary Shares
are traded on the New York Stock Exchange under the symbol
"RDC." For more information on the Company, please visit
www.rowancompanies.com.
Statements herein that are not historical facts are forward
looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, including, without limitation,
statements as to the expectations, beliefs and future expected
business, financial performance and prospects of the Company.
These forward-looking statements are based on our current
expectations and are subject to certain risks, assumptions, trends
and uncertainties that could cause actual results to differ
materially from those indicated by the forward-looking
statements. Among the factors that could cause actual results
to differ materially include oil and natural gas prices, the level
of offshore expenditures by energy companies, variations in energy
demand, changes in day rates, cancellation by our customers of
drilling contracts or letter agreements or letters of intent for
drilling contracts or the exercise of early termination provisions,
risks associated with fixed cost drilling operations, cost overruns
or delays on shipyard repair, construction or transportation of
drilling units, maintenance and repair costs, costs or delays for
conversion or upgrade projects, operating hazards and equipment
failure, risks of collision and damage, casualty losses and
limitations on insurance coverage, customer credit and risk of
customer bankruptcy, conditions in the general economy and
energy industry, weather conditions and severe weather in the
Company's operating areas, increasing complexity and costs of
compliance with environmental and other laws and regulations,
changes in tax laws and interpretations by taxing authorities,
changes in tax rates and provisions, civil unrest and instability,
terrorism and hostilities in our areas of operations that may
result in loss or seizure of assets, the outcome of disputes and
legal proceedings, effects of the change in our corporate
structure, and other risks disclosed in the Company's filings with
the U.S. Securities and Exchange Commission. Each
forward-looking statement speaks only as of the date hereof, and
the Company expressly disclaims any obligation to update or revise
any forward-looking statements, except as required by law.
Non-GAAP Measures
We report our financial results in accordance with generally
accepted accounting principles (GAAP). However, in our earnings
release and during our earnings calls we may reference company
information that does not conform to GAAP. Generally, a
non-GAAP financial measure is a numerical measure of a company's
performance, financial position, or cash flows that excludes or
includes amounts that are not normally excluded or included in the
most directly comparable measure calculated and presented in
accordance with GAAP. Management believes that an
analysis of this data is meaningful to investors because it
provides insight with respect to ongoing operating results of the
Company and allows investors to better evaluate the financial
results of the Company. However, these measures should not be
viewed as an alternative to or substitute for GAAP measures of
performance, and these non-GAAP measures may not be consistent with
previously published Company reports on Forms 10-K, 10-Q and 8-K.
Non-GAAP measures we may reference have been reconciled to the
nearest GAAP measure in the table entitled Reconciliation of GAAP
to Non-GAAP Financial Measures below.
ROWAN
COMPANIES PLC
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
Unaudited
(In Millions)
|
|
|
|
|
December
31,
|
|
DECEMBER
31,
|
|
2014
|
|
2013
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
$
339.2
|
|
$
1,092.8
|
Accounts
receivable
|
545.2
|
|
344.6
|
Other current
assets
|
56.7
|
|
67.7
|
Assets of
discontinued operations
|
-
|
|
23.8
|
Total current
assets
|
941.1
|
|
1,528.9
|
Property, plant and
equipment - net
|
7,432.2
|
|
6,385.8
|
Other
assets
|
37.9
|
|
61.1
|
TOTAL
|
$
8,411.2
|
|
$
7,975.8
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Accounts
payable
|
$
102.8
|
|
$
124.0
|
Other current
liabilities
|
230.4
|
|
210.5
|
Liabilities of
discontinued operations
|
-
|
|
20.1
|
Total current
liabilities
|
333.2
|
|
354.6
|
Long-term
debt
|
2,807.3
|
|
2,008.7
|
Other
liabilities
|
579.3
|
|
718.7
|
Stockholders'
equity
|
4,691.4
|
|
4,893.8
|
TOTAL
|
$
8,411.2
|
|
$
7,975.8
|
ROWAN
COMPANIES PLC
|
CONDENSED
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
Unaudited
(In Millions Except Per Share
Amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE
MONTHS
|
|
TWELVE
MONTHS
|
|
|
|
|
|
|
|
ENDED
DECEMBER 31
|
|
ENDED
DECEMBER 31
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
$ 556.2
|
|
$ 393.4
|
|
$ 1,824.4
|
|
$ 1,579.3
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
|
Operations
|
279.5
|
|
223.5
|
|
991.3
|
|
860.9
|
|
Depreciation and
amortization
|
92.6
|
|
70.6
|
|
322.6
|
|
271.0
|
|
Selling, general and
administrative
|
33.8
|
|
35.4
|
|
125.8
|
|
131.3
|
|
Gain on disposals of
property and equipment
|
(3.5)
|
|
(1.1)
|
|
(1.7)
|
|
(20.1)
|
|
Material charges,
settlements and other expenses
|
565.6
|
|
4.5
|
|
553.1
|
|
4.5
|
|
|
Total
|
968.0
|
|
332.9
|
|
1,991.1
|
|
1,247.6
|
INCOME (LOSS)
FROM OPERATIONS
|
(411.8)
|
|
60.5
|
|
(166.7)
|
|
331.7
|
Net interest and
other income
|
(29.7)
|
|
(16.6)
|
|
(102.9)
|
|
(70.5)
|
INCOME (LOSS)
FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES
|
(441.5)
|
|
43.9
|
|
(269.6)
|
|
261.2
|
Provision (benefit)
for income taxes
|
(114.6)
|
|
(5.8)
|
|
(150.7)
|
|
8.6
|
NET INCOME (LOSS)
FROM CONTINUING OPERATIONS
|
(326.9)
|
|
49.7
|
|
(118.9)
|
|
252.6
|
Discontinued
operations, net of tax
|
-
|
|
-
|
|
4.0
|
|
-
|
NET INCOME
(LOSS)
|
$ (326.9)
|
|
$ 49.7
|
|
$ (114.9)
|
|
$ 252.6
|
|
|
|
|
|
|
|
|
PER SHARE
AMOUNTS:
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
$ (2.63)
|
|
$ 0.40
|
|
$ (0.96)
|
|
$ 2.03
|
|
Discontinued
operations, net of tax
|
$
-
|
|
$
-
|
|
$
0.03
|
|
$
-
|
|
Net income
(loss)
|
$ (2.63)
|
|
$ 0.40
|
|
$ (0.93)
|
|
$ 2.03
|
|
|
|
|
|
|
|
|
|
AVERAGE
DILUTED SHARES
|
124.3
|
|
124.7
|
|
124.1
|
|
124.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTE: See page
6 for supplemental operating information.
|
|
|
ROWAN COMPANIES PLC
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Unaudited
(In Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TWELVE
MONTHS
|
|
|
|
|
|
|
|
|
ENDED DECEMBER
31
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
CASH PROVIDED BY
(USED IN):
|
|
|
|
Operations:
|
|
|
|
Net income
|
$ (114.9)
|
|
$ 252.6
|
Adjustments to reconcile net income to
net
|
|
|
|
cash provided
by operations:
|
|
|
|
Depreciation and amortization
|
322.6
|
|
271.0
|
Deferred income taxes
|
(182.5)
|
|
(33.6)
|
Gain on disposals of assets
|
(3.7)
|
|
(20.1)
|
Impairment charges
|
574.0
|
|
4.5
|
Other - net
|
0.7
|
|
43.6
|
Net changes in current assets and liabilities
|
(145.4)
|
|
44.8
|
Net changes in other noncurrent assets
and liabilities
|
(27.8)
|
|
60.4
|
Net cash provided by operations
|
423.0
|
|
623.2
|
|
|
|
|
Investing activities:
|
|
|
|
Property, plant and equipment additions
|
(1,958.2)
|
|
(607.3)
|
Proceeds from disposals of property, plant
and equipment
|
22.0
|
|
44.5
|
Net
cash used in investing activities
|
(1,936.2)
|
|
(562.8)
|
|
|
|
|
Financing activities:
|
|
|
|
Proceeds from
borrowings, net
|
792.7
|
|
-
|
Payment of cash
dividends
|
(37.7)
|
|
-
|
Proceeds from
equity compensation plans and other
|
4.6
|
|
8.4
|
Net cash provided by financing activities
|
759.6
|
|
8.4
|
|
|
|
|
INCREASE
(DECREASE) IN CASH AND
CASH EQUIVALENTS
|
(753.6)
|
|
68.8
|
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD
|
1,092.8
|
|
1,024.0
|
CASH
AND CASH EQUIVALENTS, END OF PERIOD
|
$ 339.2
|
|
$ 1,092.8
|
ROWAN
COMPANIES PLC
|
SUPPLEMENTAL
OPERATING INFORMATION
|
Unaudited
|
|
|
|
|
|
|
THREE
MONTHS ENDED
|
|
TWELVE
MONTHS ENDED
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
DECEMBER
31,
|
|
2014
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
RIG
DAYS:
|
|
|
|
|
|
|
|
|
|
|
Operating
|
2,520
|
|
2,396
|
|
2,279
|
|
9,281
|
|
9,027
|
|
Out of service
(shipyard/transit/inspections/other)
|
196
|
|
254
|
|
267
|
|
1,157
|
|
1,097
|
|
Operational downtime
(off rate during rig operations)
|
29
|
|
18
|
|
30
|
|
112
|
|
96
|
|
Cold
stacked
|
184
|
|
184
|
|
184
|
|
730
|
|
886
|
|
|
Total
available
|
2,929
|
|
2,852
|
|
2,760
|
|
11,280
|
|
11,106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utilization
|
86%
|
|
84%
|
|
83%
|
|
82%
|
|
81%
|
|
|
Utilization
(excluding cold-stacked rigs)
|
92%
|
|
90%
|
|
88%
|
|
88%
|
|
88%
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE
DAY RATES (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Jack-ups:
|
|
|
|
|
|
|
|
|
|
|
|
North Sea
|
$
306.4
|
|
$
283.6
|
|
$
284.0
|
|
$ 289.8
|
|
$ 270.4
|
|
|
Middle
East
|
145.8
|
|
141.1
|
|
135.6
|
|
141.2
|
|
136.5
|
|
|
Gulf of
Mexico
|
150.1
|
|
144.3
|
|
143.4
|
|
151.0
|
|
138.5
|
|
|
All jack-up
rigs
|
185.2
|
|
174.3
|
|
168.4
|
|
177.3
|
|
170.9
|
|
Drillships
|
$
658.6
|
|
$
660.2
|
|
n/a
|
|
650.4
|
|
n/a
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
COSTS AND EXPENSES (in
millions):
|
|
|
|
|
|
|
|
|
|
|
Personnel
(a)
|
$
180.7
|
|
$
160.9
|
|
$
141.7
|
|
$ 631.7
|
|
$ 537.7
|
|
Repairs and
maintenance
|
43.2
|
|
42.9
|
|
42.3
|
|
175.5
|
|
161.7
|
|
All other
|
33.5
|
|
32.0
|
|
30.1
|
|
130.8
|
|
125.8
|
|
|
Subtotal (excluding
rebillables)
|
$
257.4
|
|
$
235.8
|
|
$
214.1
|
|
$ 938.0
|
|
$ 825.2
|
|
Rebillables (equally
offset with rebillable revenue)
|
22.1
|
|
11.1
|
|
9.4
|
|
53.3
|
|
35.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
$
279.5
|
|
$
246.9
|
|
$
223.5
|
|
$ 991.3
|
|
$ 860.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Includes
labor, fringes, training, travel and catering costs.
|
|
|
|
|
ROWAN
COMPANIES PLC
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE
MONTHS
|
|
TWELVE
MONTHS
|
|
|
|
|
|
|
|
ENDED
DECEMBER 31
|
|
ENDED
DECEMBER 31
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
NET INCOME
(LOSS):
|
|
|
|
|
|
|
|
GAAP NET
INCOME (LOSS)
|
$ (326.9)
|
|
$ 49.7
|
|
$ (114.9)
|
|
$ 252.6
|
|
Non-cash asset
impairment charges, net of tax
|
438.4
|
|
2.9
|
|
446.7
|
|
2.9
|
|
Discrete tax item
(IRS U.S. settlement)
|
-
|
|
-
|
|
(41.0)
|
|
-
|
|
Litigation settlement
(tanker incident)
|
-
|
|
-
|
|
(20.9)
|
|
-
|
|
Gain on sale of
jack-up rig (Rowan Paris), net of tax
|
-
|
|
-
|
|
-
|
|
(12.4)
|
|
Discontinued
operations, net of tax
|
-
|
|
-
|
|
(4.0)
|
|
-
|
NON-GAAP NET
INCOME (LOSS)
|
$ 111.5
|
|
$ 52.6
|
|
$ 265.9
|
|
$ 243.1
|
|
|
|
|
|
|
|
|
|
DILUTED INCOME
(LOSS) PER SHARE*:
|
|
|
|
|
|
|
|
GAAP NET
INCOME (LOSS) PER SHARE
|
$ (2.63)
|
|
$ 0.40
|
|
$ (0.93)
|
|
$ 2.03
|
|
Non-cash asset
impairment charges, net of tax
|
3.53
|
|
0.02
|
|
3.60
|
|
0.02
|
|
Discrete tax item
(IRS U.S. settlement)
|
-
|
|
-
|
|
(0.33)
|
|
-
|
|
Litigation settlement
(tanker incident)
|
-
|
|
-
|
|
(0.17)
|
|
-
|
|
Gain on sale of
jack-up rig (Rowan Paris), net of tax
|
-
|
|
-
|
|
-
|
|
(0.10)
|
|
Discontinued
operations, net of tax
|
-
|
|
-
|
|
(0.03)
|
|
-
|
NON-GAAP NET
INCOME (LOSS) PER SHARE
|
$ 0.89
|
|
$ 0.42
|
|
$ 2.14
|
|
$ 1.95
|
|
|
|
|
|
|
|
|
|
ADJUSTED EARNINGS
BEFORE INTEREST, TAXES AND DEPRECIATION (EBITDA)
|
|
|
|
|
|
|
|
GAAP NET
INCOME (LOSS)
|
$ (326.9)
|
|
$ 49.7
|
|
$ (114.9)
|
|
$ 252.6
|
|
Non-cash asset
impairment charges
|
565.6
|
|
4.5
|
|
574.0
|
|
4.5
|
|
Litigation settlement
(tanker incident)
|
-
|
|
-
|
|
(20.9)
|
|
-
|
|
Interest (income)
expense, net
|
29.7
|
|
16.6
|
|
102.9
|
|
70.5
|
|
Depreciation and
amortization
|
92.6
|
|
70.6
|
|
322.6
|
|
271.0
|
|
Income tax expense
(benefit)
|
(114.6)
|
|
(5.8)
|
|
(150.7)
|
|
8.6
|
|
Gain on sale of
jack-up rig (Rowan Paris)
|
-
|
|
-
|
|
-
|
|
(19.1)
|
|
Discontinued
operations, net of tax
|
-
|
|
-
|
|
(4.0)
|
|
-
|
NON-GAAP
ADJUSTED EBITDA
|
$ 246.4
|
|
$ 135.6
|
|
$ 709.0
|
|
$ 588.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Per share amounts
may not sum due to rounding.
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/rowan-reports-fourth-quarter-and-full-year-2014-results-300042649.html
SOURCE Rowan Companies plc