Delaware
|
75-0759420
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
incorporation
or organization)
|
Identification
No.)
|
2800
Post Oak Boulevard, Suite 5450 Houston,
Texas
|
77056-6189
|
(Address
of principal executive offices)
|
(Zip
Code)
|
|
|
Page
No.
|
PART
I.
|
|
|
|
|
|
Item
1.
|
|
|
|
|
|
|
2
|
|
|
|
|
|
4
|
|
|
|
|
|
5
|
|
|
|
|
|
6
|
|
|
|
|
Item
2.
|
14
|
|
|
|
|
Item
3.
|
26
|
|
|
|
|
Item
4.
|
26
|
|
|
|
|
PART
II.
|
|
|
|
|
|
Item
1.
|
27
|
|
|
|
|
Item
1A.
|
Risk Factors |
28
|
Item
2.
|
28
|
|
Item
6.
|
28
|
|
|
|
|
29
|
|
|
||||||
ROWAN
COMPANIES, INC. AND SUBSIDIARIES
|
|||||||
(IN
THOUSANDS, EXCEPT SHARE
AMOUNTS)
|
June
30,
|
December
31,
|
|||||||
2007
|
2006
|
|||||||
ASSETS
|
(Unaudited)
|
|||||||
CURRENT
ASSETS:
|
||||||||
Cash
and cash equivalents
|
$ |
389,762
|
$ |
258,041
|
||||
Receivables
- trade and other
|
338,165
|
418,985
|
||||||
Inventories
- at cost:
|
||||||||
Raw
materials and supplies
|
307,180
|
260,319
|
||||||
Work-in-progress
|
98,295
|
84,466
|
||||||
Finished
goods
|
1,629
|
310
|
||||||
Prepaid
expenses
|
89,250
|
62,307
|
||||||
Deferred
tax assets - net
|
18,262
|
18,421
|
||||||
Total
current assets
|
1,242,543
|
1,102,849
|
||||||
RESTRICTED
CASH
|
50,000
|
156,077
|
||||||
PROPERTY,
PLANT AND EQUIPMENT - at cost:
|
||||||||
Drilling
equipment
|
2,710,040
|
2,639,036
|
||||||
Manufacturing
plant and equipment
|
243,966
|
210,448
|
||||||
Construction
in progress
|
231,185
|
137,265
|
||||||
Other
property and equipment
|
118,101
|
106,642
|
||||||
Total
|
3,303,292
|
3,093,391
|
||||||
Less
accumulated depreciation and amortization
|
999,647
|
960,165
|
||||||
Property, plant and
equipment - net
|
2,303,645
|
2,133,226
|
||||||
GOODWILL
AND OTHER ASSETS
|
49,864
|
43,246
|
||||||
TOTAL
|
$ |
3,646,052
|
$ |
3,435,398
|
||||
See
Notes to Unaudited Consolidated Financial Statements.
|
ROWAN
COMPANIES, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(IN
THOUSANDS, EXCEPT SHARE
AMOUNTS)
|
June
30,
|
December
31,
|
|||||||
2007
|
2006
|
|||||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
(Unaudited)
|
|||||||
CURRENT
LIABILITIES:
|
||||||||
Current maturities of long-term debt
|
$ |
64,922
|
$ |
64,922
|
||||
Accounts payable - trade
|
103,990
|
141,206
|
||||||
Deferred revenues
|
150,521
|
146,230
|
||||||
Billings in excess of uncompleted contract costs and estimated
profit
|
70,663
|
71,151
|
||||||
Other current liabilities
|
110,693
|
93,197
|
||||||
Total
current liabilities
|
500,789
|
516,706
|
||||||
LONG-TERM
DEBT - less current maturities
|
452,943
|
485,404
|
||||||
OTHER
LIABILITIES
|
251,683
|
212,177
|
||||||
DEFERRED
INCOME TAXES - net
|
365,147
|
347,065
|
||||||
STOCKHOLDERS'
EQUITY:
|
||||||||
Preferred stock, $1.00 par value:
|
||||||||
Authorized
5,000,000 shares issuable in series:
|
||||||||
Series A Preferred Stock, authorized 4,800 shares, none
outstanding
|
||||||||
Series B Preferred Stock, authorized 4,800 shares, none
outstanding
|
||||||||
Series C Preferred Stock, authorized 9,606 shares, none
outstanding
|
||||||||
Series D Preferred Stock, authorized 9,600 shares, none
outstanding
|
||||||||
Series E Preferred Stock, authorized 1,194 shares, none
outstanding
|
||||||||
Series
A Junior Preferred Stock, authorized 1,500,000 shares, none
issued
|
||||||||
Common stock, $.125 par value:
|
||||||||
Authorized
150,000,000 shares; issued 111,018,302 shares at June 30,
2007
|
||||||||
and 110,461,531 shares at December 31, 2006
|
13,877
|
13,808
|
||||||
Additional paid-in capital
|
999,636
|
988,998
|
||||||
Retained earnings
|
1,172,347
|
981,610
|
||||||
Accumulated other comprehensive loss
|
(110,370 | ) | (110,370 | ) | ||||
Total
stockholders' equity
|
2,075,490
|
1,874,046
|
||||||
TOTAL
|
$ |
3,646,052
|
$ |
3,435,398
|
||||
See
Notes to Unaudited Consolidated Financial Statements.
|
ROWAN COMPANIES,
INC. AND
SUBSIDIARIES
|
|
(IN
THOUSANDS, EXCEPT PER SHARE
AMOUNTS)
|
For
The Three Months
|
For
The Six Months
|
|||||||||||||||
Ended
June 30,
|
Ended
June 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
REVENUES:
|
||||||||||||||||
Drilling
services
|
$ |
353,103
|
$ |
280,110
|
$ |
641,357
|
$ |
497,212
|
||||||||
Manufacturing sales and services
|
153,901
|
102,776
|
327,901
|
185,461
|
||||||||||||
Total
|
507,004
|
382,886
|
969,258
|
682,673
|
||||||||||||
COSTS
AND EXPENSES:
|
||||||||||||||||
Drilling
services
|
144,608
|
119,655
|
291,424
|
226,626
|
||||||||||||
Manufacturing sales and services
|
130,376
|
81,125
|
287,915
|
146,512
|
||||||||||||
Depreciation and amortization
|
28,814
|
21,951
|
56,458
|
42,062
|
||||||||||||
Selling, general and administrative
|
22,931
|
18,629
|
45,288
|
38,962
|
||||||||||||
Gain on disposals of property and equipment
|
(14,621 | ) | (24,432 | ) | (38,722 | ) | (26,976 | ) | ||||||||
Total
|
312,108
|
216,928
|
642,363
|
427,186
|
||||||||||||
INCOME
FROM OPERATIONS
|
194,896
|
165,958
|
326,895
|
255,487
|
||||||||||||
OTHER
INCOME (EXPENSE):
|
||||||||||||||||
Interest
expense
|
(6,534 | ) | (7,128 | ) | (13,215 | ) | (14,125 | ) | ||||||||
Less interest capitalized
|
1,970
|
2,261
|
3,477
|
3,620
|
||||||||||||
Interest
income
|
5,481
|
6,948
|
10,930
|
15,277
|
||||||||||||
Other - net |
264
|
(61 | ) |
559
|
71
|
|||||||||||
Other income - net
|
1,181
|
2,020
|
1,751
|
4,843
|
||||||||||||
INCOME
BEFORE INCOME TAXES
|
196,077
|
167,978
|
328,646
|
260,330
|
||||||||||||
Provision for income taxes
|
67,953
|
58,287
|
114,169
|
91,534
|
||||||||||||
NET
INCOME
|
$ |
128,124
|
$ |
109,691
|
$ |
214,477
|
$ |
168,796
|
||||||||
PER
SHARE AMOUNTS:
|
||||||||||||||||
Net
income - basic
|
$ |
1.16
|
$ |
.99
|
$ |
1.94
|
$ |
1.53
|
||||||||
Net
income - diluted
|
$ |
1.14
|
$ |
.98
|
$ |
1.92
|
$ |
1.51
|
||||||||
See
Notes to Unaudited Consolidated Financial Statements.
|
ROWAN COMPANIES,
INC. AND
SUBSIDIARIES
|
|
(IN
THOUSANDS)
|
For
The Six Months
|
||||||||
Ended
June 30,
|
||||||||
2007
|
2006
|
|||||||
(Unaudited)
|
||||||||
CASH
PROVIDED BY (USED IN):
|
||||||||
Operations:
|
||||||||
Net
income
|
$ |
214,477
|
$ |
168,796
|
||||
Adjustments to reconcile net income to net cash provided by
operations:
|
||||||||
Depreciation and amortization
|
56,458
|
42,062
|
||||||
Deferred
income taxes
|
16,616
|
57,176
|
||||||
Provision for pension and postretirement benefits
|
15,532
|
15,415
|
||||||
Compensation
expense
|
4,211
|
8,777
|
||||||
Contributions to pension plans
|
(496 | ) | (920 | ) | ||||
Postretirement benefit claims paid
|
(1,385 | ) | (1,911 | ) | ||||
Gain on disposals of property, plant and equipment
|
(38,722 | ) | (26,976 | ) | ||||
Changes in current assets and liabilities:
|
||||||||
Receivables - trade and other
|
80,820
|
(91,433 | ) | |||||
Inventories | (62,009 | ) | (67,315 | ) | ||||
Other
current assets
|
(26,943 | ) | (51,887 | ) | ||||
Accounts
payable
|
(47,848 | ) |
17,248
|
|||||
Income
taxes payable
|
16,149
|
8,104
|
||||||
Deferred
revenues
|
4,291
|
24,277
|
||||||
Billings in excess of uncompleted contract costs and estimated
profit
|
(488 | ) |
27,419
|
|||||
Other
current liabilities
|
1,205
|
(45,176 | ) | |||||
Net changes in other noncurrent assets and liabilities
|
19,171
|
15,043
|
||||||
Net
cash provided by operations
|
251,039
|
98,699
|
||||||
Investing
activities:
|
||||||||
Capital
expenditures
|
(221,329 | ) | (258,091 | ) | ||||
Proceeds from disposals of property, plant and equipment
|
43,483
|
34,305
|
||||||
Change
in restricted cash balance
|
106,077
|
-
|
||||||
Net
cash used in investing activities
|
(71,769 | ) | (223,786 | ) | ||||
Financing
activities:
|
||||||||
Repayments
of borrowings
|
(32,461 | ) | (32,461 | ) | ||||
Payment
of cash dividends
|
(22,115 | ) | (38,462 | ) | ||||
Proceeds
from stock option and convertible debenture plans and
other
|
7,027
|
8,438
|
||||||
Net
cash used in financing activities
|
(47,549 | ) | (62,485 | ) | ||||
INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
131,721
|
(187,572 | ) | |||||
CASH
AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
258,041
|
675,903
|
||||||
CASH
AND CASH EQUIVALENTS, END OF PERIOD
|
$ |
389,762
|
$ |
488,331
|
||||
See
Notes to Unaudited Consolidated Financial Statements.
|
1. |
The
consolidated financial statements of Rowan included in
this Form 10-Q have been prepared without audit in accordance with
accounting principles generally accepted in the United States of
America
and the rules and regulations of the Securities and Exchange Commission.
Certain information and notes have been condensed or omitted as permitted
by those rules and regulations. Rowan believes that the disclosures
included herein are adequate, but suggests that you read these
consolidated financial statements in conjunction with the consolidated
financial statements and related notes included in our Annual Report
on
Form 10-K for the year ended December 31, 2006.
|
2. |
Rowan’s
computations of basic and diluted income per share
for the three and six months ended June 30, 2007 and 2006 are as
follows
(in thousands except per share amounts):
|
Three
Months
|
Six
Months
|
|||||||||||||||
Ended
June 30,
|
Ended
June 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Average
common shares outstanding
|
110,802
|
110,322
|
110,645
|
110,134
|
||||||||||||
Dilutive
securities:
|
||||||||||||||||
Stock
options
|
1,036
|
1,210
|
953
|
1,293
|
||||||||||||
Convertible
debentures
|
357
|
419
|
288
|
437
|
||||||||||||
Average
shares for diluted calculations
|
112,195
|
111,951
|
111,886
|
111,864
|
||||||||||||
Net
income
|
$ |
128,124
|
$ |
109,691
|
$ |
214,477
|
$ |
168,796
|
||||||||
Net
income per share:
|
||||||||||||||||
Basic
|
$ |
1.16
|
$ |
.99
|
$ |
1.94
|
$ |
1.53
|
||||||||
Diluted
|
$ |
1.14
|
$ |
.98
|
$ |
1.92
|
$ |
1.51
|
3.
|
Rowan
had no items of other comprehensive income during the three or
six months
ended June 30, 2007 and 2006. Interest payments (net of amounts
capitalized) were $3.5 million and $3.2 million for the three
months ended
June 30, 2007 and 2006, respectively and $10.4 million and $10.2
million
for the six months ended June 30, 2007 and 2006,
respectively. Tax payments (net of refunds) were $56.4 million
and $20.2 million for the three months ended June 30, 2007 and
2006,
respectively and $58.1 million and $25.3 million for the six
months ended
June 30, 2007 and 2006,
respectively.
|
4.
|
Rowan
generally recognizes manufacturing sales and related
costs when title passes as products are shipped. Revenues from
long-term manufacturing projects such as rigs and rig kits are
recognized
on the percentage-of-completion basis using costs incurred relative
to
total estimated costs. The Company does not recognize any
estimated profit until such projects are at least 10% complete,
though a
full provision is made immediately for any anticipated
losses.
|
June
30,
|
December
31,
|
||||||||
2007
|
2006
|
||||||||
Total
contract value of long-term projects (1)
|
$ |
214.2
|
$ |
344.4
|
|||||
Payments
received
|
134.5
|
179.8
|
|||||||
Revenues
recognized
|
64.2
|
114.0
|
|||||||
Costs
recognized
|
41.7
|
106.7
|
|||||||
Payments
received in excess of revenues recognized
|
70.3
|
65.8
|
|||||||
|
|||||||||
Billings
in excess of uncompleted contract costs and
estimated profit
|
$ |
70.7
|
$ |
71.1
|
|||||
Uncompleted
contract costs and estimated profit in excess of billings (included
in
other current assets)
|
$ |
0.4
|
$ |
5.3
|
|||||
(1)
Includes projects in progress and those not yet begun
for which
Rowan has received advanced payments.
|
|||||||||
|
|
5.
|
Rowan
has three principal operating segments, including the
contract drilling of oil and gas wells, both onshore and offshore
(“Drilling”) and two manufacturing segments. The Drilling
Products and Systems segment provides equipment, parts and services
for
the drilling industry through three business groups: Offshore
Products
features jack-up rigs, rig kits and related components and parts;
Drilling
Systems includes mud pumps, drawworks, top drives, rotary tables
and other
rig equipment; and Power Systems includes variable-speed motors,
drives
and other electrical components featuring AC, DC and Switch Reluctance
technologies. The Mining, Forestry and Steel Products segment
includes large-wheeled mining and timber equipment and related
parts and
carbon and alloy steel and steel plate.
|
Total
Assets
|
Goodwill
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Drilling
|
$ |
3,008.9
|
$ |
2,758.0
|
$ |
1.5
|
$ |
1.5
|
||||||||
Manufacturing:
|
||||||||||||||||
Drilling
Products and Systems
|
442.6
|
298.4
|
10.9
|
10.9
|
||||||||||||
Mining,
Forestry and Steel Products
|
194.6
|
146.0
|
-
|
-
|
||||||||||||
Total
|
$ |
3,646.1
|
$ |
3,202.4
|
$ |
12.4
|
$ |
12.4
|
Three
Months
|
Six
Months
|
|||||||||||||||
Ended
June 30,
|
Ended
June 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Revenues:
|
||||||||||||||||
Drilling
|
$ |
353.1
|
$ |
280.1
|
$ |
641.4
|
$ |
497.2
|
||||||||
Manufacturing:
|
||||||||||||||||
Drilling
Products and Systems
|
112.6
|
53.1
|
232.7
|
91.7
|
||||||||||||
Mining,
Forestry and Steel Products
|
41.3
|
49.7
|
95.2
|
93.8
|
||||||||||||
Total
|
$ |
507.0
|
$ |
382.9
|
$ |
969.3
|
$ |
682.7
|
||||||||
Operating
Income:
|
||||||||||||||||
Drilling
|
$ |
181.9
|
$ |
151.6
|
$ |
307.7
|
$ |
231.2
|
||||||||
Manufacturing:
|
||||||||||||||||
Drilling
Products and Systems
|
7.5
|
9.3
|
7.9
|
14.0
|
||||||||||||
Mining,
Forestry and Steel Products
|
5.5
|
5.1
|
11.3
|
10.3
|
||||||||||||
Total
|
$ |
194.9
|
$ |
166.0
|
$ |
326.9
|
$ |
255.5
|
Three
Months
|
Six
Months
|
|||||||||||||||
Ended
June 30,
|
Ended
June 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Drilling:
|
||||||||||||||||
Middle
East
|
$ |
111.9
|
$ |
33.1
|
$ |
176.8
|
$ |
33.1
|
||||||||
Europe
|
68.7
|
30.9
|
115.0
|
57.7
|
||||||||||||
Trinidad
|
17.6
|
-
|
34.6
|
-
|
||||||||||||
Canada
|
-
|
18.1
|
(1.2 | ) |
30.8
|
|||||||||||
Mining,
Forestry & Steel Products - Australia
|
3.0
|
4.9
|
10.7
|
11.9
|
||||||||||||
Total
|
$ |
201.2
|
$ |
87.0
|
$ |
335.9
|
$ |
133.5
|
6.
|
Since
1952, Rowan has sponsored defined benefit pension plans covering
substantially all of its employees. In addition, Rowan provides certain
health care and life insurance benefits (Other benefits) for retired
drilling and aviation employees.
|
Three
Months
|
Six
Months
|
|||||||||||||||
Ended
June 30,
|
Ended
June 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Service
cost
|
$ |
3,308
|
$ |
3,003
|
$ |
6,378
|
$ |
5,973
|
||||||||
Interest
cost
|
7,199
|
6,114
|
13,437
|
12,161
|
||||||||||||
Expected
return on plan assets
|
(7,067 | ) | (6,145 | ) | (13,172 | ) | (12,222 | ) | ||||||||
Recognized
actuarial loss
|
2,017
|
3,030
|
5,308
|
6,034
|
||||||||||||
Amortization
of prior service cost
|
(160 | ) |
42
|
(105 | ) |
84
|
||||||||||
Total
|
$ |
5,297
|
$ |
6,044
|
$ |
11,846
|
$ |
12,030
|
Three
Months
|
Six
Months
|
|||||||||||||||
Ended
June 30,
|
Ended
June 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Service
cost
|
$ |
546
|
$ |
492
|
$ |
1,036
|
$ |
978
|
||||||||
Interest
cost
|
1,131
|
943
|
2,093
|
1,876
|
||||||||||||
Recognized
actuarial loss
|
167
|
153
|
330
|
304
|
||||||||||||
Amortization
of transition obligation
|
147
|
165
|
328
|
328
|
||||||||||||
Amortization
of prior service cost
|
(52 | ) | (51 | ) | (101 | ) | (101 | ) | ||||||||
Total
|
$ |
1,939
|
$ |
1,702
|
$ |
3,686
|
$ |
3,385
|
|
During
the first half of 2007, Rowan contributed $1.9 million toward its
pension
and other benefit plans. Rowan currently expects to make
additional payments totaling approximately $13 million during the
remainder of 2007 for pension plan contributions and other benefit
claims.
|
7.
|
During
June 2007, Rowan recognized a $14.2 million gain in
connection with the sale of its Alaska based drilling camps. In October
2005, Rowan sold its only semi-submersible rig for approximately
$60
million in cash. Payment for the rig occurred over a 15-month
period ending in January 2007, at which point the title to the rig
was
transferred to the buyer. Rowan retained ownership of much of
the drilling equipment on the rig, which was sold in 2006, and continued
to provide (through February 2007) a number of operating personnel
under a
separate services agreement. The transaction was accounted for
as a sales-type lease with the expected gain on the sale and imputed
interest income of approximately $46 million deferred until the net
book
value of the rig had been recovered. During the first quarter
of 2007, we received all remaining payments totaling $24.0 million
and
recognized a $23.4 million gain on the
sale.
|
8.
|
During
the third quarter of 2005, Rowan lost four offshore rigs, including
the
Rowan-Halifax, and incurred significant damage on a fifth as a
result of Hurricanes Katrina and Rita. Since that time, the
Company has been working to locate the lost or damaged rigs, salvage
related equipment, remove debris, wreckage and pollutants from the
water,
mark or clear navigational hazards and clear rights of way. At
June 30, 2007, Rowan had incurred $110.4 million of costs related
to such
efforts, of which $80.7 million had been reimbursed through insurance,
leaving $29.7 million included in Receivables. The Company
expects to incur additional costs to fulfill its obligations to remove
wreckage and debris in amounts that will depend on the extent and
nature
of work ultimately required and the duration
thereof. Previously, the Company reported the filing of a
lawsuit styled Rowan Companies, Inc. vs. Certain Underwriters at
Lloyd’s and Insurance Companies Subscribing to Cover Note ARS 4183
in the 215th Judicial District Court of
Harris County, Texas. The lawsuit was withdrawn following the
agreement by such underwriters to reimburse the Company for the reasonable
cost of removing wreckage and debris remaining on the drilling
locations. Certain of Rowan’s insurance underwriters at higher
limits of liability have notified the Company that they are reserving
their right to deny coverage for any costs incurred in wreckage and
debris
removal activities that they believe are outside the scope of their
policy. The Company does not expect the costs to reach these
higher limits until late 2007 or early 2008. Although the
Company believes that it has adequate insurance coverage and will
be
reimbursed for costs incurred and to be incurred, it is possible
that a
portion of such costs will not be reimbursed, requiring a charge
to future
operations for any shortfall.
|
9.
|
The
extent of hurricane damage sustained throughout the Gulf
Coast area in recent years has dramatically increased the cost
and reduced
the availability of insurance coverage for windstorm
losses. During the Company’s April 2006 policy renewal, it
determined that windstorm coverage meeting the requirements of
its
existing debt agreements was cost-prohibitive. As all of
Rowan’s debt is government-guaranteed through the Title XI program of
U.S.
Department of Transportation’s Maritime Administration (MARAD), the
Company obtained from MARAD a waiver of the original insurance
requirements in return for providing additional
security.
|
10.
|
As
a result of the implementation of FASB Interpretation No. 48, "Accounting
for Uncertainty in Income Taxes - an interpretation of FASB Statement
No.
109”, effective January 1, 2007, the Company recognized a $1.6 million
decrease in Retained earnings and a $5.5 million increase in Other
liabilities as of that date.
|
11.
|
In
September 2006, the FASB issued Statement of Financial
Accounting Standards (SFAS) No. 157, Fair Value
Measurements. This statement defines fair value, establishes a
framework for measuring fair value and expands disclosures about
fair
value measurements. SFAS No. 157 will become effective for our fiscal
year beginning January 1, 2008, and we are currently assessing
the
potential impact of this statement on our financial
statements.
|
12.
|
On
July 31, 2007, the Board of Directors of the Company
declared a cash dividend of $.10 per share of common stock payable
on
August 29, 2007 to shareholders of record on August 14,
2007.
|
Manufacturing
|
||||||||||||||||||||||||||||||||
Drilling
Products
|
Mining,
Forestry and
|
|||||||||||||||||||||||||||||||
Drilling
|
and
Systems
|
Steel
Products
|
Consolidated
|
|||||||||||||||||||||||||||||
2007
|
2006
|
2007
|
2006
|
2007
|
2006
|
2007
|
2006
|
|||||||||||||||||||||||||
Revenues
|
$ |
641.4
|
$ |
497.2
|
$ |
232.7
|
$ |
91.7
|
$ |
95.2
|
$ |
93.8
|
$ |
969.3
|
$ |
682.7
|
||||||||||||||||
Percent
of total
|
66 | % | 73 | % | 24 | % | 13 | % | 10 | % | 14 | % | 100 | % | 100 | % | ||||||||||||||||
|
||||||||||||||||||||||||||||||||
Income
from operations
|
$ |
307.7
|
$ |
231.2
|
$ |
7.9
|
$ |
14.0
|
$ |
11.3
|
$ |
10.3
|
$ |
326.9
|
$ |
255.5
|
||||||||||||||||
Percent
of revenues
|
48 | % | 47 | % | 3 | % | 15 | % | 12 | % | 11 | % | 34 | % | 37 | % | ||||||||||||||||
|
||||||||||||||||||||||||||||||||
Net
interest and other income
|
$ |
1.8
|
$ |
4.8
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Net
income
|
$ |
214.5
|
$ |
168.8
|
||||||||||||||||||||||||||||
Manufacturing
|
||||||||||||||||||||||||||||||||
Drilling
Products
|
Mining,
Forestry and
|
|||||||||||||||||||||||||||||||
Drilling
|
and
Systems
|
Steel
Products
|
Consolidated
|
|||||||||||||||||||||||||||||
2007
|
2006
|
2007
|
2006
|
2007
|
2006
|
2007
|
2006
|
|||||||||||||||||||||||||
Revenues
|
$ |
353.1
|
$ |
280.1
|
$ |
112.6
|
$ |
53.1
|
$ |
41.3
|
$ |
49.7
|
$ |
507.0
|
$ |
382.9
|
||||||||||||||||
Percent
of total
|
70 | % | 73 | % | 22 | % | 14 | % | 8 | % | 13 | % | 100 | % | 100 | % | ||||||||||||||||
|
||||||||||||||||||||||||||||||||
Income
from operations
|
$ |
181.9
|
$ |
151.6
|
$ |
7.5
|
$ |
9.3
|
$ |
5.5
|
$ |
5.1
|
$ |
194.9
|
$ |
166.0
|
||||||||||||||||
Percent
of revenues
|
52 | % | 54 | % | 7 | % | 18 | % | 13 | % | 10 | % | 38 | % | 43 | % | ||||||||||||||||
|
||||||||||||||||||||||||||||||||
Net
interest and other income
|
$ |
1.2
|
$ |
2.0
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Net
income
|
$ |
128.1
|
$ |
109.7
|
||||||||||||||||||||||||||||
June
30,
2007
|
December
31, 2006
|
|||||||
Cash
and cash equivalents
|
$ |
389.8
|
$ |
258.0
|
||||
Current
assets
|
$ |
1,242.5
|
$ |
1,102.8
|
||||
Current
liabilities
|
$ |
500.8
|
$ |
516.7
|
||||
Current
ratio
|
2.48
|
2.13
|
||||||
Long-term
debt – less current maturities
|
$ |
452.9
|
$ |
485.4
|
||||
Stockholders'
equity
|
$ |
2,075.5
|
$ |
1,874.0
|
||||
Long-term
debt/total capitalization
|
.18
|
.21
|
·
|
net
cash provided by operations of $251.0
million
|
·
|
decrease
in restricted cash of $106.1
million
|
·
|
proceeds
from disposals of property, plant and equipment of
$43.5 million
|
·
|
proceeds
from stock option and convertible debenture plans
of $6.0 million
|
·
|
capital
expenditures of $221.3
million
|
·
|
debt
repayments of $32.5
million
|
·
|
cash
dividend payments of $22.1
million
|
·
|
statements,
other than statements of historical fact, that
address activities, events or developments that we expect, believe
or
anticipate will or may occur in the
future;
|
·
|
statements
relating to future financial performance, future
capital sources and other matters; and
|
·
|
any
other statements preceded by, followed by or that
include the words “anticipates”, “believes”, “expects”, “plans”,
“intends”, “estimates”, “projects”, “could”, “should”, “may”, or similar
expressions.
|
·
|
oil
and natural gas prices
|
·
|
the
level of exploration and development expenditures by
energy companies
|
·
|
energy
demand
|
·
|
the
general economy, including
inflation
|
·
|
weather
conditions in our principal operating
areas
|
·
|
environmental
and other laws and
regulations
|
·
|
adverse
consequences that may be found in or result from the
DOJ investigations, including potential financial consequences
and
governmental actions, proceedings, charges or
penalties
|
ROWAN
COMPANIES, INC.
|
||
(Registrant)
|
||
Date:
August 3, 2007
|
/s/
W. H. WELLS
|
|
W.
H. Wells
|
||
Vice
President - Finance and Chief Financial
Officer
|
||
(Chief
Financial Officer)
|
||
Date:
August 3, 2007
|
/s/
GREGORY M. HATFIELD
|
|
Gregory
M. Hatfield
|
||
Controller
|
||
(Chief
Accounting Officer)
|