HOUSTON, April 29 /PRNewswire/ -- R&B Falcon Corporation (NYSE: FLC)
reported income from continuing operations of $69.8 million ($.42 net income
per diluted share) for the three months ended March 31, 1998, compared with
net income from continuing operations of $44.7 million ($.27 net income per
diluted share from continuing operations) for the three months ended March 31,
1997. Operating income for the quarter ended March 31, 1998 was $126.0 million
on revenues of $279.4 million, compared to operating income for the quarter
ended March 31, 1997 of $69.8 million on revenues of $203.1 million. This
represents a 37.6% increase in revenues and an 80.5% increase in operating
income. The $56.2 million improvement in operating income is largely
attributable to increased revenues due to improved dayrates.
Included in this quarter's results is a reduction in depreciation expense
to reflect the extension of the expected useful lives of the Company's
drilling units per an independent appraisal of the units. This change in
estimate will result in reduced depreciation expense for the Company
prospectively from January 1, 1998. The recalculation of the depreciation
expense for the first quarter ended March 31, 1998 resulted in a reduction of
depreciation expense and an increase in operating income of $5.2 million.
Steven Webster, the Company's President and CEO, said, "Industry
fundamentals continue to be favorable. Recent weakness in crude oil prices
has not materially impacted our current results or our outlook. Our domestic
drilling divisions reported record operating income and continue with firm
backlogs. In addition, the deepwater business continues its strength and,
with dayrates moving towards replacement cost levels, we believe operating
income should continue to increase as rates roll over in our existing fleet.
The planned addition to our active fleet from late 1998 through early 2000 of
seven drillships and two semisubmersibles will help ensure positive earnings
momentum. All nine units are under long-term contracts.
We are particularly pleased that we have recently completed a significant
restructuring of our balance sheet with the raising of $1.6 billion in debt
capital on attractive terms. In addition to the refinancing of higher cost
debt, this financing positions us to fund our aggressive growth program with a
low cost of capital and ensures financial flexibility going forward."
R&B Falcon Corporation is a New York Stock Exchange listed company,
providing offshore drilling services throughout the world. R&B Falcon's fleet
of 115 drilling units services the worldwide deepwater, shallow offshore and
transition zone markets.
R&B FALCON CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(in millions except per share amounts)
THREE MONTHS ENDED
MARCH 31,
1998 1997
OPERATING REVENUES $ 279.4 $ 203.1
COSTS AND EXPENSES:
Operating expenses 120.0 103.5
Depreciation 20.9 18.5
General and administrative 13.5 11.3
Merger expenses (1.0) ---
Total costs and expenses 153.4 133.3
OPERATING INCOME 126.0 69.8
OTHER INCOME (EXPENSE):
Interest expense, net of
capitalized interest (13.9) (10.1)
Interest income 1.5 1.6
Other, net (0.1) (0.3)
Total other income (expense) (12.5) (8.8)
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAX EXPENSE AND
MINORITY INTEREST 113.5 61.0
INCOME TAX EXPENSE:
Current 6.8 8.3
Deferred 34.6 4.7
Total income tax expense 41.4 13.0
MINORITY INTEREST (2.3) (3.3)
INCOME FROM CONTINUING OPERATIONS 69.8 44.7
LOSS FROM DISCONTINUED OPERATIONS --- (5.8)
NET INCOME $ 69.8 $ 38.9
NET INCOME PER SHARE:
BASIC:
Continuing operations $ 0.42 $ 0.27
Discontinued operations --- (0.03)
Net income $ 0.42 $ 0.24
DILUTED:
Continuing operations $ 0.42 $ 0.27
Discontinued operations --- (0.04)
Net income $ 0.42 $ 0.23
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING:
BASIC 164.9 163.6
DILUTED 166.4 165.9
R&B FALCON CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in millions)
3/31/98 12/31/97
ASSETS:
Cash, cash equivalents and
short-term investments $ 118.1 $ 100.9
Other current assets 268.8 215.6
Net property and equipment 1,797.4 1,580.7
Other assets 41.8 31.2
TOTAL ASSETS $ 2,226.1 $ 1,928.4
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities $ 480.3 $ 331.4
Long-term obligations 725.8 692.2
Other noncurrent liabilities 144.0 121.2
Minority interest 53.8 55.6
Stockholders' equity 822.2 728.0
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,226.1 $ 1,928.4
SOURCE R&B Falcon Corporation
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Related links:
http://www.rbfalcon.com
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 118988
CONTACT:
Charles R. Ofner of R&B Falcon, 281-496-5000
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