FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. INDEPENDENT AUDITORS' REPORT Board of Directors and Stockholders Diamond Offshore Drilling, Inc. and subsidiaries Houston, Texas We have audited the accompanying consolidated balance sheets of Diamond Offshore Drilling, Inc. and subsidiaries (the "Company") as of December 31, 2001 and 2000, and the related consolidated statements of income, stockholders' equity, comprehensive income and cash flows for each of the three years in the period ended December 31, 2001. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of Diamond Offshore Drilling, Inc. and subsidiaries as of December 31, 2001 and 2000, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2001, in conformity with accounting principles generally accepted in the United States of America. Deloitte & Touche LLP Houston, Texas January 22, 2002 (February 14, 2002 as to the settlement of put options described in Note 1) DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) ASSETS DECEMBER 31, 2001 2000 Current assets: Drilling and other property and equipment, net of accumulated depreciation.................................. 2,002,873 1,931,182 Goodwill, net of accumulated amortization................... 38,329 55,205 Other assets................................................ 33,900 20,929 Current liabilities: Commitments and contingencies Stockholders' equity: Preferred stock (par value $0.01, 25,000,000 shares authorized, none issued and outstanding)............... -- -- Common stock (par value $0.01, 500,000,000 shares authorized, 133,457,055 shares issued and 132,053,155 shares outstanding at December 31, 2001 and 133,150,477 shares issued and outstanding at December 31, 2000).... 1,335 1,332 Additional paid-in capital................................ 1,267,952 1,248,665 Retained earnings......................................... 624,507 517,186 Total stockholders' equity........................ 1,853,146 1,767,853 Total liabilities and stockholders' equity........ $3,502,517========== $3,079,506========== DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME YEAR ENDED DECEMBER 31, 2001 2000 1999 Revenues.................................................... $885,349 $659,436 $821,024 Operating expenses: Contract drilling......................................... 464,964 433,091 431,523 Depreciation and amortization............................. 170,017 145,596 142,963 General and administrative................................ 25,502 23,803 22,877 Total operating expenses.......................... 660,483 602,490 597,363 Operating income............................................ 224,866 56,946 223,661 Other income (expense): Gain on sale of assets.................................... 327 14,324 231 Interest income........................................... 48,682 49,525 34,985 Interest expense.......................................... (26,205) (10,272) (9,212) Other, net................................................ 24,695 344 (9,302) Income before income tax expense and extraordinary loss..... 272,365 110,867 240,363 Income tax expense.......................................... (90,820) (38,586) (84,292) Income before extraordinary loss............................ 181,545 72,281 156,071 Extraordinary loss from early debt extinguishment, net of income tax benefit of $4,158.............................. (7,722) -- -- Net income.................................................. $173,823 $ 72,281 $156,071 ======== ======== ======== Earnings per share: Basic Income before extraordinary loss....................... $ 1.37 $ 0.53 $ 1.15 Net............................................... $ 1.31 $ 0.53 $ 1.15 ======== ======== ======== Diluted Income before extraordinary loss....................... $ 1.31 $ 0.53 $ 1.11 Net............................................... $ 1.26 $ 0.53 $ 1.11 ======== ======== ======== Weighted average shares outstanding: Shares of common stock.................................... 132,886 135,164 135,822 Dilutive potential shares of common stock................. 16,408 9,876 9,876 Total weighted average shares outstanding......... 149,294 145,040 145,698 ======== ======== ======== DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (IN THOUSANDS, EXCEPT NUMBER OF SHARES) COMMON STOCK ADDITIONAL ACCUMULATED OTHER COMPREHENSIVE TREASURY STOCK TOTAL -------------------- PAID-IN RETAINED GAINS --------------------- STOCKHOLDERS' SHARES AMOUNT CAPITAL EARNINGS (LOSSES) SHARES AMOUNT EQUITY ----------- ------ ---------- -------- ------------- ---------- -------- ------------- January 1, 1999........... 139,333,635 $1,393 $1,302,806 $547,783 $(7,998) 3,518,100 $(88,726) $1,755,258 Net income................ -- -- -- 156,071 -- -- -- 156,071 Dividends to stockholders............ -- -- -- (67,911) -- -- -- (67,911) Stock options exercised... 8,746 -- 35 -- -- -- -- 35 Exchange rate changes, net..................... -- -- -- -- (983) -- -- (983) Loss on investments, net..................... -- -- -- -- (248) -- -- (248) ----------- ------ ---------- -------- ------- ---------- -------- ---------- December 31, 1999......... 139,342,381 1,393 1,302,841 635,943 (9,229) 3,518,100 (88,726) 1,842,222 ----------- ------ ---------- -------- ------- ---------- -------- ---------- Net income................ -- -- -- 72,281 -- -- -- 72,281 Treasury stock Purchase................ -- -- -- -- -- 2,705,100 (92,959) (92,959) Retirement.............. (6,223,200) (62) (58,193) (123,430) -- (6,223,200) 181,685 -- Dividends to stockholders............ -- -- -- (67,608) -- -- -- (67,608) Stock options exercised... 30,803 1 122 -- -- -- -- 123 Put option premiums....... -- -- 3,875 -- -- -- -- 3,875 Conversion of long-term debt.................... 493 -- 20 -- -- -- -- 20 Exchange rate changes, net..................... -- -- -- -- 506 -- -- 506 Gain on investments, net..................... -- -- -- -- 9,393 -- -- 9,393 ----------- ------ ---------- -------- ------- ---------- -------- ---------- December 31, 2000......... 133,150,477 1,332 1,248,665 517,186 670 -- -- 1,767,853 ----------- ------ ---------- -------- ------- ---------- -------- ---------- Net income................ -- -- -- 173,823 -- -- -- 173,823 Treasury stock purchase... -- -- -- -- -- 1,403,900 (37,768) (37,768) Dividends to stockholders............ -- -- -- (66,502) -- -- -- (66,502) Put option premiums....... -- -- 6,876 -- -- -- -- 6,876 Conversion of long-term debt.................... 306,578 3 12,411 -- -- -- -- 12,414 Exchange rate changes, net..................... -- -- -- -- (170) -- -- (170) Loss on investments, net..................... -- -- -- -- (620) -- -- (620) Minimum pension adjustment.............. -- -- -- -- (2,760) -- -- (2,760) ----------- ------ ---------- -------- ------- ---------- -------- ---------- December 31, 2001......... 133,457,055 $1,335 $1,267,952 $624,507 $(2,880) 1,403,900 $(37,768) $1,853,146 =========== ====== ========== ======== ======= ========== ======== ========== The accompanying notes are an integral part of the consolidated financial statements. DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2001 2000 1999 Net income.................................................. $173,823 $72,281 $156,071 Other comprehensive gains (losses), net of tax: Unrealized holding gain (loss) on investments............. 2,501 3,259 (5,903) net income........................................... (3,121) 6,134 5,655 Comprehensive income........................................ $170,273 $82,180 $154,840 ======== ======= ======== The accompanying notes are an integral part of the consolidated financial statements. DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEAR ENDED DECEMBER 31, 2001 2000 1999 Operating activities: Net income............................................... $ 173,823 $ 72,281 $156,071 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization......................... 170,017 145,596 142,963 Gain on sale of assets................................ (327) (14,324) (231) (Gain) loss on sale of marketable securities.......... (27,141) (2,103) 522 of tax.............................................. 7,722 -- -- Impairment write-down of marketable securities........ -- -- 10,671 Deferred tax provision................................ 74,264 26,155 38,529 Accretion of discount on marketable securities........ (2,369) (7,535) (9,316) Amortization of debt issuance costs................... 1,482 864 541 Amortization of discount on zero coupon convertible debentures.......................................... 14,481 8,033 -- Changes in operating assets and liabilities: Accounts receivable................................... (40,201) (9,883) 90,279 Rig inventory and supplies and other current assets... 3 (9,190) (7,527) Other assets, non-current............................. (11,178) (604) (2,639) Accounts payable and accrued liabilities.............. 6,762 (4,592) (30,540) Taxes payable......................................... 9,443 (12,658) 11,193 Other liabilities, non-current........................ 1,426 3,261 (881) Other, net............................................ (4,176) 1,234 (1,513) Net cash provided by operating activities........ 374,031 196,535 398,122 Investing activities: Capital expenditures.................................. (268,617) (323,924) (324,133) Proceeds from sale of assets.......................... 1,726 33,279 662 Net change in marketable securities................... 1,753 (164,548) 4,343 Securities sold under repurchase agreements........... 199,062 -- -- Proceeds from settlement of forward contracts......... 226 -- -- Net cash used in investing activities............ (65,850) (455,193) (319,128) Financing activities: Acquisition of treasury stock......................... (37,768) (92,959) -- Proceeds from sale of put options..................... 6,876 3,875 -- Payment of dividends.................................. (66,502) (67,608) (67,911) Proceeds from stock options exercised................. -- 123 35 Issuance of zero coupon convertible debentures........ -- 402,178 -- Debt issuance costs-zero coupon convertible debentures.......................................... -- (9,556) -- Lease-leaseback agreement............................. (9,732) 55,000 -- Arrangement fees-lease-leaseback agreement............ -- (255) -- Early extinguishment of debt -- 3.75% convertible subordinated notes.................................. (395,622) -- -- Issuance of 1.5% convertible senior debentures........ 460,000 -- -- Debt issuance costs -- 1.5% convertible senior debentures.......................................... (10,899) -- -- Net cash provided by (used in) financing activities..................................... (53,647) 290,798 (67,876) Net change in cash and cash equivalents.................... 254,534 32,140 11,118 Cash and cash equivalents, beginning of year.......... 144,456 112,316 101,198 Cash and cash equivalents, end of year................ $ 398,990 $ 144,456 $112,316 ========= ========= ======== The accompanying notes are an integral part of the consolidated financial statements. DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Appears in 1 contract
Sources: Annual Report
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. REPORT OF INDEPENDENT AUDITORS' REPORT Board ACCOUNTANTS ---------------- To the Shareholders of Directors and Stockholders Diamond Offshore Drilling, Inc. and subsidiaries Houston, Texas Chesapeake Utilities Corporation We have audited the accompanying consolidated balance sheets of Diamond Offshore Drilling, Inc. Chesapeake Utilities Corporation and subsidiaries (the "Company") Subsidiaries as of December 31, 2001 1994 and 20001993, and the related consolidated statements of income, cash flows, stockholders' equity, comprehensive and income and cash flows taxes for each of the three years in the period ended December 31, 2001. 1994, and the consolidated financial statement schedules listed in Item 14(a)(1) and (2) of this Form 10-K. These financial statements and financial statement schedules are the responsibility of the Company's managementManagement. Our responsibility is to express an opinion on these financial statements and financial statement schedules based on our audits. audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of Americaauditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates estimate made by managementManagement, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such consolidated the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Diamond Offshore Drilling, Inc. Chesapeake Utilities Corporation and subsidiaries Subsidiaries as of December 31, 2001 1994 and 20001993, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 2001, 1994 in conformity with accounting principles generally accepted accounting principles. In addition, in our opinion, the United States of America. Deloitte & Touche LLP Houstonconsolidated financial schedules referred to above, Texas January 22, 2002 (February 14, 2002 as when considered in relation to the settlement of put options described basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information required to be included therein. As discussed in Note A to the consolidated financial statements, effective January 1) DIAMOND OFFSHORE DRILLING, INC1993, the Company changed its method of accounting for income taxes. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN THOUSANDSWe have also previously audited, EXCEPT SHARE AND PER SHARE DATA) ASSETS DECEMBER 31in accordance with generally accepted standards, 2001 2000 Current assets: Drilling and other property and equipment, net the consolidated balance sheets as of accumulated depreciation.................................. 2,002,873 1,931,182 Goodwill, net of accumulated amortization................... 38,329 55,205 Other assets................................................ 33,900 20,929 Current liabilities: Commitments and contingencies Stockholders' equity: Preferred stock (par value $0.01, 25,000,000 shares authorized, none issued and outstanding)............... -- -- Common stock (par value $0.01, 500,000,000 shares authorized, 133,457,055 shares issued and 132,053,155 shares outstanding at December 31, 2001 1992, 1991, and 133,150,477 shares issued 1990, and outstanding at the related consolidated statements of income, cash flows, stockholders' equity, and income taxes for each of the two years in the period ended December 31, 20001991, (none of which are presented herein).... 1,335 1,332 Additional paid-; and we expressed unqualified opinion on those financial statements. In our opinion, the information set forth in capital................................ 1,267,952 1,248,665 Retained earnings......................................... 624,507 517,186 Total stockholders' equity........................ 1,853,146 1,767,853 Total liabilities and stockholders' equity........ $3,502,517========== $3,079,506========== DIAMOND OFFSHORE DRILLINGthe Selected Financial Data section, INCfor each of the five years in the period ended December 31, 1994, is fairly stated in all material respect in relation to the financial statements from which it has been derived. AND SUBSIDIARIES Coopers & ▇▇▇▇▇▇▇, L.L.P. Baltimore, Maryland February 10, 1995 CONSOLIDATED STATEMENTS OF INCOME YEAR FOR THE YEARS ENDED DECEMBER 31, 2001 2000 1999 Revenues.................................................... ------------------------------------- 1994 ----------- 1993 ----------- 1992 ----------- OPERATING REVENUES...................... OPERATING EXPENSES $885,349 98,572,297 ----------- $659,436 85,872,632 ----------- $821,024 Operating expenses: Contract drilling......................................... 464,964 433,091 431,523 75,934,708 ----------- Purchased gas costs................... 59,013,165 49,838,349 42,356,210 Operations............................ 19,681,435 18,178,500 16,792,136 Maintenance........................... 2,181,404 1,833,244 1,791,866 Depreciation and amortization............................. 170,017 145,596 142,963 General and administrative................................ 25,502 23,803 22,877 Total operating expenses.......................... 660,483 602,490 597,363 Operating income............................................ 224,866 56,946 223,661 ......... 5,140,679 5,087,087 4,674,645 Other income (expense): Gain on sale of assets.................................... 327 14,324 231 Interest income........................................... 48,682 49,525 34,985 Interest expense.......................................... (26,205) (10,272) (9,212) Other, net................................................ 24,695 344 (9,302) Income before income tax expense and extraordinary loss..... 272,365 110,867 240,363 Income tax expense.......................................... (90,820) (38,586) (84,292) Income before extraordinary loss............................ 181,545 72,281 156,071 Extraordinary loss from early debt extinguishment, net of income tax benefit of $4,158.............................. (7,722) -- -- Net income.................................................. $173,823 $ 72,281 $156,071 ======== ======== ======== Earnings per share: Basic Income before extraordinary loss....................... $ 1.37 $ 0.53 $ 1.15 Net............................................... $ 1.31 $ 0.53 $ 1.15 ======== ======== ======== Diluted Income before extraordinary loss....................... $ 1.31 $ 0.53 $ 1.11 Net............................................... $ 1.26 $ 0.53 $ 1.11 ======== ======== ======== Weighted average shares outstanding: Shares of common stock.................................... 132,886 135,164 135,822 Dilutive potential shares of common stock................. 16,408 9,876 9,876 Total weighted average shares outstanding......... 149,294 145,040 145,698 ======== ======== ======== DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (IN THOUSANDS, EXCEPT NUMBER OF SHARES) COMMON STOCK ADDITIONAL ACCUMULATED OTHER COMPREHENSIVE TREASURY STOCK TOTAL -------------------- PAID-IN RETAINED GAINS --------------------- STOCKHOLDERS' SHARES AMOUNT CAPITAL EARNINGS (LOSSES) SHARES AMOUNT EQUITY ----------- ------ ---------- -------- ------------- ---------- -------- ------------- January 1, 1999........... 139,333,635 $1,393 $1,302,806 $547,783 $(7,998) 3,518,100 $(88,726) $1,755,258 Net income................ -- -- -- 156,071 -- -- -- 156,071 Dividends to stockholders............ -- -- -- (67,911) -- -- -- (67,911) Stock options exercised... 8,746 -- 35 -- -- -- -- 35 Exchange rate changes, net..................... -- -- -- -- (983) -- -- (983) Loss on investments, net..................... -- -- -- -- (248) -- -- (248) ----------- ------ ---------- -------- ------- ---------- -------- ---------- December 31, 1999......... 139,342,381 1,393 1,302,841 635,943 (9,229) 3,518,100 (88,726) 1,842,222 ----------- ------ ---------- -------- ------- ---------- -------- ---------- Net income................ -- -- -- 72,281 -- -- -- 72,281 Treasury stock Purchase................ -- -- -- -- -- 2,705,100 (92,959) (92,959) Retirement.............. (6,223,200) (62) (58,193) (123,430) -- (6,223,200) 181,685 -- Dividends to stockholders............ -- -- -- (67,608) -- -- -- (67,608) Stock options exercised... 30,803 1 122 -- -- -- -- 123 Put option premiums....... -- -- 3,875 -- -- -- -- 3,875 Conversion of long-term debt.................... 493 -- 20 -- -- -- -- 20 Exchange rate changes, net..................... -- -- -- -- 506 -- -- 506 Gain on investments, net..................... -- -- -- -- 9,393 -- -- 9,393 ----------- ------ ---------- -------- ------- ---------- -------- ---------- December 31, 2000......... 133,150,477 1,332 1,248,665 517,186 670 -- -- 1,767,853 ----------- ------ ---------- -------- ------- ---------- -------- ---------- Net income................ -- -- -- 173,823 -- -- -- 173,823 Treasury stock purchase... -- -- -- -- -- 1,403,900 (37,768) (37,768) Dividends to stockholders............ -- -- -- (66,502) -- -- -- (66,502) Put option premiums....... -- -- 6,876 -- -- -- -- 6,876 Conversion of long-term debt.................... 306,578 3 12,411 -- -- -- -- 12,414 Exchange rate changes, net..................... -- -- -- -- (170) -- -- (170) Loss on investments, net..................... -- -- -- -- (620) -- -- (620) Minimum pension adjustment.............. -- -- -- -- (2,760) -- -- (2,760) ----------- ------ ---------- -------- ------- ---------- -------- ---------- December 31, 2001......... 133,457,055 $1,335 $1,267,952 $624,507 $(2,880) 1,403,900 $(37,768) $1,853,146 =========== ====== ========== ======== ======= ========== ======== ========== The accompanying notes are an integral part of the consolidated financial statements. DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2001 2000 1999 Net income.................................................. $173,823 $72,281 $156,071 Other comprehensive gains (losses), net of tax: Unrealized holding gain (loss) on investments............. 2,501 3,259 (5,903) net income........................................... (3,121) 6,134 5,655 Comprehensive income........................................ $170,273 $82,180 $154,840 ======== ======= ======== The accompanying notes are an integral part of the consolidated financial statements. DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEAR ENDED DECEMBER 31, 2001 2000 1999 Operating activities: Net income............................................... $ 173,823 $ 72,281 $156,071 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization......................... 170,017 145,596 142,963 Gain on sale of assets................................ (327) (14,324) (231) (Gain) loss on sale of marketable securities.......... (27,141) (2,103) 522 of tax.............................................. 7,722 -- -- Impairment write-down of marketable securities........ -- -- 10,671 Deferred tax provision................................ 74,264 26,155 38,529 Accretion of discount on marketable securities........ (2,369) (7,535) (9,316) Amortization of debt issuance costs................... 1,482 864 541 Amortization of discount on zero coupon convertible debentures.......................................... 14,481 8,033 -- Changes in operating assets and liabilities: Accounts receivable................................... (40,201) (9,883) 90,279 Rig inventory and supplies and other current assets... 3 (9,190) (7,527) Other assets, non-current............................. (11,178) (604) (2,639) Accounts payable and accrued liabilities.............. 6,762 (4,592) (30,540) Taxes payable......................................... 9,443 (12,658) 11,193 Other liabilities, non-current........................ 1,426 3,261 (881) Other, net............................................ (4,176) 1,234 (1,513) Net cash provided by operating activities........ 374,031 196,535 398,122 Investing activities: Capital expenditures.................................. (268,617) (323,924) (324,133) Proceeds from sale of assets.......................... 1,726 33,279 662 Net change in marketable securities................... 1,753 (164,548) 4,343 Securities sold under repurchase agreements........... 199,062 -- -- Proceeds from settlement of forward contracts......... 226 -- -- Net cash used in investing activities............ (65,850) (455,193) (319,128) Financing activities: Acquisition of treasury stock......................... (37,768) (92,959) -- Proceeds from sale of put options..................... 6,876 3,875 -- Payment of dividends.................................. (66,502) (67,608) (67,911) Proceeds from stock options exercised................. -- 123 35 Issuance of zero coupon convertible debentures........ -- 402,178 -- Debt issuance costs-zero coupon convertible debentures.......................................... -- (9,556) -- Lease-leaseback agreement............................. (9,732) 55,000 -- Arrangement fees-lease-leaseback agreement............ -- (255) -- Early extinguishment of debt -- 3.75% convertible subordinated notes.................................. (395,622) -- -- Issuance of 1.5% convertible senior debentures........ 460,000 -- -- Debt issuance costs -- 1.5% convertible senior debentures.......................................... (10,899) -- -- Net cash provided by (used in) financing activities..................................... (53,647) 290,798 (67,876) Net change in cash and cash equivalents.................... 254,534 32,140 11,118 Cash and cash equivalents, beginning of year.......... 144,456 112,316 101,198 Cash and cash equivalents, end of year................ $ 398,990 $ 144,456 $112,316 ========= ========= ======== The accompanying notes are an integral part of the consolidated financial statements. DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTStaxes........................... 2,798,905 2,635,072 2,431,968
Appears in 1 contract
Sources: Annual Report
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. INDEPENDENT AUDITORS' REPORT Board of Directors and Stockholders Diamond Offshore Drilling, Inc. and subsidiaries Houston, Texas We have audited the accompanying consolidated balance sheets of Diamond Offshore Drilling, Inc. and subsidiaries (the "Company") as of December 31, 2001 1998 and 20001997, and the related consolidated statements of income, stockholders' equity, comprehensive income and cash flows for each of the three years in the period ended December 31, 20011998. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of Americaauditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of Diamond Offshore Drilling, Inc. and subsidiaries as of December 31, 2001 1998 and 20001997, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 20011998, in conformity with accounting principles generally accepted in the United States of Americaaccounting principles. Deloitte DELOITTE & Touche TOUCHE LLP Houston, Texas January 2225, 2002 (February 14, 2002 as to the settlement of put options described in Note 1) 1999 28 DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) ASSETS DECEMBER 31, 2001 2000 1998 1997 Current assets: Drilling and other property and equipment, net of accumulated depreciation.................................. 2,002,873 1,931,182 1,551,820 1,451,741 Goodwill, net of accumulated amortization................... 38,329 55,205 109,825 118,623 Other assets................................................ 33,900 20,929 9,647 9,422 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Long-term debt.............................................. 400,000 400,000 Deferred tax liability...................................... 263,797 209,513 Other liabilities........................................... 30,260 22,376 Commitments and contingencies Stockholders' equity: Preferred stock (par value $0.01, 25,000,000 shares authorized, none issued and outstanding)............... -- -- Common stock (par value $0.01, 500,000,000 shares authorized, 133,457,055 shares issued and 132,053,155 shares 139,333,635 issued, 135,815,535 outstanding at December 31, 2001 1998 and 133,150,477 139,309,948 shares issued and outstanding at December 31, 20001997).... 1,335 1,332 ...................... 1,393 1,393 Additional paid-in capital................................ 1,267,952 1,248,665 .................................. 1,302,806 1,302,712 Retained earnings......................................... 624,507 517,186 ........................................... 547,783 233,350 Accumulated other comprehensive losses...................... (7,998) (1,928) Total stockholders' equity........................ 1,853,146 1,767,853 1,755,258 1,535,527 Total liabilities and stockholders' equity........ $3,502,517========== 2,609,716========== $3,079,506========== DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME YEAR ENDED DECEMBER 31, 2001 2000 1999 Revenues.................................................... $885,349 $659,436 $821,024 Operating expenses: Contract drilling......................................... 464,964 433,091 431,523 Depreciation and amortization............................. 170,017 145,596 142,963 General and administrative................................ 25,502 23,803 22,877 Total operating expenses.......................... 660,483 602,490 597,363 Operating income............................................ 224,866 56,946 223,661 Other income (expense): Gain on sale of assets.................................... 327 14,324 231 Interest income........................................... 48,682 49,525 34,985 Interest expense.......................................... (26,205) (10,272) (9,212) Other, net................................................ 24,695 344 (9,302) Income before income tax expense and extraordinary loss..... 272,365 110,867 240,363 Income tax expense.......................................... (90,820) (38,586) (84,292) Income before extraordinary loss............................ 181,545 72,281 156,071 Extraordinary loss from early debt extinguishment, net of income tax benefit of $4,158.............................. (7,722) -- -- Net income.................................................. $173,823 $ 72,281 $156,071 ======== ======== ======== Earnings per share: Basic Income before extraordinary loss....................... $ 1.37 $ 0.53 $ 1.15 Net............................................... $ 1.31 $ 0.53 $ 1.15 ======== ======== ======== Diluted Income before extraordinary loss....................... $ 1.31 $ 0.53 $ 1.11 Net............................................... $ 1.26 $ 0.53 $ 1.11 ======== ======== ======== Weighted average shares outstanding: Shares of common stock.................................... 132,886 135,164 135,822 Dilutive potential shares of common stock................. 16,408 9,876 9,876 Total weighted average shares outstanding......... 149,294 145,040 145,698 ======== ======== ======== DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (IN THOUSANDS, EXCEPT NUMBER OF SHARES) COMMON STOCK ADDITIONAL ACCUMULATED OTHER COMPREHENSIVE TREASURY STOCK TOTAL -------------------- PAID-IN RETAINED GAINS --------------------- STOCKHOLDERS' SHARES AMOUNT CAPITAL EARNINGS (LOSSES) SHARES AMOUNT EQUITY ----------- ------ ---------- -------- ------------- ---------- -------- ------------- January 1, 1999........... 139,333,635 $1,393 $1,302,806 $547,783 $(7,998) 3,518,100 $(88,726) $1,755,258 Net income................ -- -- -- 156,071 -- -- -- 156,071 Dividends to stockholders............ -- -- -- (67,911) -- -- -- (67,911) Stock options exercised... 8,746 -- 35 -- -- -- -- 35 Exchange rate changes, net..................... -- -- -- -- (983) -- -- (983) Loss on investments, net..................... -- -- -- -- (248) -- -- (248) ----------- ------ ---------- -------- ------- ---------- -------- ---------- December 31, 1999......... 139,342,381 1,393 1,302,841 635,943 (9,229) 3,518,100 (88,726) 1,842,222 ----------- ------ ---------- -------- ------- ---------- -------- ---------- Net income................ -- -- -- 72,281 -- -- -- 72,281 Treasury stock Purchase................ -- -- -- -- -- 2,705,100 (92,959) (92,959) Retirement.............. (6,223,200) (62) (58,193) (123,430) -- (6,223,200) 181,685 -- Dividends to stockholders............ -- -- -- (67,608) -- -- -- (67,608) Stock options exercised... 30,803 1 122 -- -- -- -- 123 Put option premiums....... -- -- 3,875 -- -- -- -- 3,875 Conversion of long-term debt.................... 493 -- 20 -- -- -- -- 20 Exchange rate changes, net..................... -- -- -- -- 506 -- -- 506 Gain on investments, net..................... -- -- -- -- 9,393 -- -- 9,393 ----------- ------ ---------- -------- ------- ---------- -------- ---------- December 31, 2000......... 133,150,477 1,332 1,248,665 517,186 670 -- -- 1,767,853 ----------- ------ ---------- -------- ------- ---------- -------- ---------- Net income................ -- -- -- 173,823 -- -- -- 173,823 Treasury stock purchase... -- -- -- -- -- 1,403,900 (37,768) (37,768) Dividends to stockholders............ -- -- -- (66,502) -- -- -- (66,502) Put option premiums....... -- -- 6,876 -- -- -- -- 6,876 Conversion of long-term debt.................... 306,578 3 12,411 -- -- -- -- 12,414 Exchange rate changes, net..................... -- -- -- -- (170) -- -- (170) Loss on investments, net..................... -- -- -- -- (620) -- -- (620) Minimum pension adjustment.............. -- -- -- -- (2,760) -- -- (2,760) ----------- ------ ---------- -------- ------- ---------- -------- ---------- December 31, 2001......... 133,457,055 $1,335 $1,267,952 $624,507 $(2,880) 1,403,900 $(37,768) $1,853,146 =========== ====== ========== ======== ======= ========== ======== ========== 2,298,561========== The accompanying notes are an integral part of the consolidated financial statements. DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2001 2000 1999 Net income.................................................. Revenues................................................... $173,823 1,208,801 $ 956,093 $72,281 $156,071 Other comprehensive gains (losses), net of tax611,430 Operating expenses: Unrealized holding gain (loss) on investments............. 2,501 3,259 (5,903) net income........................................... (3,121) 6,134 5,655 Comprehensive incomeContract drilling........................................ $170,273 $82,180 $154,840 ======== ======= ======== The accompanying notes are an integral part of the consolidated financial statements. DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEAR ENDED DECEMBER 31, 2001 2000 1999 Operating activities: Net income............................................... $ 173,823 $ 72,281 $156,071 Adjustments to reconcile net income to net cash provided by operating activities: 484,625 406,343 341,654 Depreciation and amortization......................... 170,017 145,596 142,963 Gain on sale of assets................................ (327) (14,324) (231) (Gain) loss on sale of marketable securities.......... (27,141) (2,103) 522 of tax.............................................. 7,722 -- -- Impairment write-down of marketable securities........ -- -- 10,671 Deferred tax provision................................ 74,264 26,155 38,529 Accretion of discount on marketable securities........ (2,369) (7,535) (9,316) Amortization of debt issuance costs................... 1,482 864 541 Amortization of discount on zero coupon convertible debentures.......................................... 14,481 8,033 -- Changes in operating assets ............................ 130,271 108,335 75,767 General and liabilities: Accounts receivable................................... (40,201) (9,883) 90,279 Rig inventory and supplies and other current assets... 3 (9,190) (7,527) Other assets, non-current............................. (11,178) (604) (2,639) Accounts payable and accrued liabilities.............. 6,762 (4,592) (30,540) Taxes payable......................................... 9,443 (12,658) 11,193 Other liabilities, non-current........................ 1,426 3,261 (881) Other, net............................................ (4,176) 1,234 (1,513) Net cash provided by operating activities........ 374,031 196,535 398,122 Investing activities: Capital expenditures.................................. (268,617) (323,924) (324,133) Proceeds from sale of assets.......................... 1,726 33,279 662 Net change in marketable securities................... 1,753 (164,548) 4,343 Securities sold under repurchase agreements........... 199,062 -- -- Proceeds from settlement of forward contracts......... 226 -- -- Net cash used in investing activities............ (65,850) (455,193) (319,128) Financing activities: Acquisition of treasury stock......................... (37,768) (92,959) -- Proceeds from sale of put options..................... 6,876 3,875 -- Payment of dividends.................................. (66,502) (67,608) (67,911) Proceeds from stock options exercised................. -- 123 35 Issuance of zero coupon convertible debentures........ -- 402,178 -- Debt issuance costs-zero coupon convertible debentures.......................................... -- (9,556) -- Lease-leaseback agreement............................. (9,732) 55,000 -- Arrangement fees-lease-leaseback agreement............ -- (255) -- Early extinguishment of debt -- 3.75% convertible subordinated notes.................................. (395,622) -- -- Issuance of 1.5% convertible senior debentures........ 460,000 -- -- Debt issuance costs -- 1.5% convertible senior debentures.......................................... (10,899) -- -- Net cash provided by (used in) financing activities..................................... (53,647) 290,798 (67,876) Net change in cash and cash equivalents.................... 254,534 32,140 11,118 Cash and cash equivalents, beginning of year.......... 144,456 112,316 101,198 Cash and cash equivalents, end of year................ $ 398,990 $ 144,456 $112,316 ========= ========= ======== The accompanying notes are an integral part of the consolidated financial statements. DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTSadministrative............................... 25,324 22,556 15,640
Appears in 1 contract
Sources: Annual Report
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. INDEPENDENT AUDITORS' MANAGEMENT REPORT Board of Directors and Stockholders Diamond Offshore DrillingKaty Industries, Inc. management is responsible for the fair presentation and subsidiaries Houstonconsistency of all financial data included in this Annual Report in accordance with generally accepted accounting principles. Where necessary, Texas the data reflect management's best estimates and judgements. Management also is responsible for maintaining an internal control structure with the objective of providing reasonable assurance that Katy's assets are safeguarded against material loss from unauthorized use or disposition and that authorized transactions are properly recorded to permit the preparation of accurate financial data. Cost-benefit judgements are an important consideration in this regard. The effectiveness of internal controls is maintained by: (1) personnel selection and training; (2) division of responsibilities; (3) establishment and communication of policies; and (4) ongoing internal review programs and audits. Management believes that Katy's system of internal controls is effective and adequate to accomplish the above described objectives. /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ _____________________________________ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ President and Chief Executive Officer /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇ _____________________________________ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇ Vice President, Finance and Chief Financial Officer REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS TO KATY INDUSTRIES, INC.: We have audited the accompanying consolidated balance sheets of Diamond Offshore DrillingKATY INDUSTRIES, Inc. INC., (a Delaware corporation) and subsidiaries (the "Company") as of December 31, 2001 2000 and 20001999, and the related consolidated statements of incomeoperations, stockholders' equity, comprehensive income equity and cash flows for each of the three years in the period ended December 31, 20012000. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of AmericaStates. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such consolidated the financial statements referred to above present fairly, in all material respects, the financial position of Diamond Offshore DrillingKaty Industries, Inc. and subsidiaries as of December 31, 2001 2000 and 20001999, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2001, 2000 in conformity with accounting principles generally accepted in the United States of AmericaStates. Deloitte & Touche ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ LLP HoustonDenver, Texas January 22Colorado March 30, 2002 (February 14, 2002 as to the settlement of put options described in Note 1) DIAMOND OFFSHORE DRILLING2001 KATY INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) ASSETS DECEMBER 31, 2001 2000 Current assets: Drilling and other property and equipment, net As of accumulated depreciation.................................. 2,002,873 1,931,182 Goodwill, net of accumulated amortization................... 38,329 55,205 Other assets................................................ 33,900 20,929 Current liabilities: Commitments and contingencies Stockholders' equity: Preferred stock (par value $0.01, 25,000,000 shares authorized, none issued and outstanding)............... -- -- Common stock (par value $0.01, 500,000,000 shares authorized, 133,457,055 shares issued and 132,053,155 shares outstanding at December 31, 2001 2000 and 133,150,477 shares issued and outstanding at December 31, 20001999 (Thousands of Dollars).... 1,335 1,332 Additional paid-in capital................................ 1,267,952 1,248,665 Retained earnings......................................... 624,507 517,186 Total stockholders' equity........................ 1,853,146 1,767,853 Total liabilities and stockholders' equity........ $3,502,517========== $3,079,506========== DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME YEAR ENDED DECEMBER 31, 2001 2000 1999 Revenues.................................................... $885,349 $659,436 $821,024 Operating expenses: Contract drilling......................................... 464,964 433,091 431,523 Depreciation and amortization............................. 170,017 145,596 142,963 General and administrative................................ 25,502 23,803 22,877 Total operating expenses.......................... 660,483 602,490 597,363 Operating income............................................ 224,866 56,946 223,661 Other income (expense): Gain on sale of assets.................................... 327 14,324 231 Interest income........................................... 48,682 49,525 34,985 Interest expense.......................................... (26,205) (10,272) (9,212) Other, net................................................ 24,695 344 (9,302) Income before income tax expense and extraordinary loss..... 272,365 110,867 240,363 Income tax expense.......................................... (90,820) (38,586) (84,292) Income before extraordinary loss............................ 181,545 72,281 156,071 Extraordinary loss from early debt extinguishment, net of income tax benefit of $4,158.............................. (7,722) -- -- Net income.................................................. $173,823 $ 72,281 $156,071 ======== ======== ======== Earnings per share: Basic Income before extraordinary loss....................... $ 1.37 $ 0.53 $ 1.15 Net............................................... $ 1.31 $ 0.53 $ 1.15 ======== ======== ======== Diluted Income before extraordinary loss....................... $ 1.31 $ 0.53 $ 1.11 Net............................................... $ 1.26 $ 0.53 $ 1.11 ======== ======== ======== Weighted average shares outstanding: Shares of common stock.................................... 132,886 135,164 135,822 Dilutive potential shares of common stock................. 16,408 9,876 9,876 Total weighted average shares outstanding......... 149,294 145,040 145,698 ======== ======== ======== DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (IN THOUSANDS, EXCEPT NUMBER OF SHARES) COMMON STOCK ADDITIONAL ACCUMULATED OTHER COMPREHENSIVE TREASURY STOCK TOTAL -------------------- PAID-IN RETAINED GAINS --------------------- STOCKHOLDERS' SHARES AMOUNT CAPITAL EARNINGS (LOSSES) SHARES AMOUNT EQUITY ----------- ------ ---------- -------- ------------- ---------- -------- ------------- January 1, 1999........... 139,333,635 $1,393 $1,302,806 $547,783 $(7,998) 3,518,100 $(88,726) $1,755,258 Net income................ -- -- -- 156,071 -- -- -- 156,071 Dividends to stockholders............ -- -- -- (67,911) -- -- -- (67,911) Stock options exercised... 8,746 -- 35 -- -- -- -- 35 Exchange rate changes, net..................... -- -- -- -- (983) -- -- (983) Loss on investments, net..................... -- -- -- -- (248) -- -- (248) ----------- ------ ---------- -------- ------- ---------- -------- ---------- December 31, 1999......... 139,342,381 1,393 1,302,841 635,943 (9,229) 3,518,100 (88,726) 1,842,222 ----------- ------ ---------- -------- ------- ---------- -------- ---------- Net income................ -- -- -- 72,281 -- -- -- 72,281 Treasury stock Purchase................ -- -- -- -- -- 2,705,100 (92,959) (92,959) Retirement.............. (6,223,200) (62) (58,193) (123,430) -- (6,223,200) 181,685 -- Dividends to stockholders............ -- -- -- (67,608) -- -- -- (67,608) Stock options exercised... 30,803 1 122 -- -- -- -- 123 Put option premiums....... -- -- 3,875 -- -- -- -- 3,875 Conversion of long-term debt.................... 493 -- 20 -- -- -- -- 20 Exchange rate changes, net..................... -- -- -- -- 506 -- -- 506 Gain on investments, net..................... -- -- -- -- 9,393 -- -- 9,393 ----------- ------ ---------- -------- ------- ---------- -------- ---------- December 31, 2000......... 133,150,477 1,332 1,248,665 517,186 670 -- -- 1,767,853 ----------- ------ ---------- -------- ------- ---------- -------- ---------- Net income................ -- -- -- 173,823 -- -- -- 173,823 Treasury stock purchase... -- -- -- -- -- 1,403,900 (37,768) (37,768) Dividends to stockholders............ -- -- -- (66,502) -- -- -- (66,502) Put option premiums....... -- -- 6,876 -- -- -- -- 6,876 Conversion of long-term debt.................... 306,578 3 12,411 -- -- -- -- 12,414 Exchange rate changes, net..................... -- -- -- -- (170) -- -- (170) Loss on investments, net..................... -- -- -- -- (620) -- -- (620) Minimum pension adjustment.............. -- -- -- -- (2,760) -- -- (2,760) ----------- ------ ---------- -------- ------- ---------- -------- ---------- December 31, 2001......... 133,457,055 $1,335 $1,267,952 $624,507 $(2,880) 1,403,900 $(37,768) $1,853,146 =========== ====== ========== ======== ======= ========== ======== ========== The accompanying notes are an integral part of the consolidated financial statements. DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2001 2000 1999 Net income.................................................. $173,823 $72,281 $156,071 Other comprehensive gains (losses), net of tax: Unrealized holding gain (loss) on investments............. 2,501 3,259 (5,903) net income........................................... (3,121) 6,134 5,655 Comprehensive income........................................ $170,273 $82,180 $154,840 ======== ======= ======== The accompanying notes are an integral part of the consolidated financial statements. DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEAR ENDED DECEMBER 31, 2001 2000 1999 Operating activities: Net income............................................... $ 173,823 $ 72,281 $156,071 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization......................... 170,017 145,596 142,963 Gain on sale of assets................................ (327) (14,324) (231) (Gain) loss on sale of marketable securities.......... (27,141) (2,103) 522 of tax.............................................. 7,722 -- -- Impairment write-down of marketable securities........ -- -- 10,671 Deferred tax provision................................ 74,264 26,155 38,529 Accretion of discount on marketable securities........ (2,369) (7,535) (9,316) Amortization of debt issuance costs................... 1,482 864 541 Amortization of discount on zero coupon convertible debentures.......................................... 14,481 8,033 -- Changes in operating assets and liabilities: Accounts receivable................................... (40,201) (9,883) 90,279 Rig inventory and supplies and other current assets... 3 (9,190) (7,527) Other assets, non-current............................. (11,178) (604) (2,639) Accounts payable and accrued liabilities.............. 6,762 (4,592) (30,540) Taxes payable......................................... 9,443 (12,658) 11,193 Other liabilities, non-current........................ 1,426 3,261 (881) Other, net............................................ (4,176) 1,234 (1,513) Net cash provided by operating activities........ 374,031 196,535 398,122 Investing activities: Capital expenditures.................................. (268,617) (323,924) (324,133) Proceeds from sale of assets.......................... 1,726 33,279 662 Net change in marketable securities................... 1,753 (164,548) 4,343 Securities sold under repurchase agreements........... 199,062 -- -- Proceeds from settlement of forward contracts......... 226 -- -- Net cash used in investing activities............ (65,850) (455,193) (319,128) Financing activities: Acquisition of treasury stock......................... (37,768) (92,959) -- Proceeds from sale of put options..................... 6,876 3,875 -- Payment of dividends.................................. (66,502) (67,608) (67,911) Proceeds from stock options exercised................. -- 123 35 Issuance of zero coupon convertible debentures........ -- 402,178 -- Debt issuance costs-zero coupon convertible debentures.......................................... -- (9,556) -- Lease-leaseback agreement............................. (9,732) 55,000 -- Arrangement fees-lease-leaseback agreement............ -- (255) -- Early extinguishment of debt -- 3.75% convertible subordinated notes.................................. (395,622) -- -- Issuance of 1.5% convertible senior debentures........ 460,000 -- -- Debt issuance costs -- 1.5% convertible senior debentures.......................................... (10,899) -- -- Net cash provided by (used in) financing activities..................................... (53,647) 290,798 (67,876) Net change in cash and cash equivalents.................... 254,534 32,140 11,118 Cash and cash equivalents, beginning of year.......... 144,456 112,316 101,198 Cash and cash equivalents, end of year................ $ 398,990 $ 144,456 $112,316 ========= ========= ======== The accompanying notes are an integral part of the consolidated financial statements. DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Appears in 1 contract
Sources: Annual Report (Katy Industries Inc)
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. INDEPENDENT AUDITORSIndependent Auditors' REPORT Report The Board of Directors and Stockholders Diamond Offshore DrillingShareholders Florida East Coast Industries, Inc.: We have audited the consolidated balance sheets of Florida East Coast Industries, Inc. and subsidiaries Houston, Texas We have audited the accompanying consolidated balance sheets of Diamond Offshore Drilling, Inc. and subsidiaries (the "Company") as of December 31, 2001 2000 and 20001999, and the related consolidated statements of income, stockholders' equitychanges in shareholders’ equity and comprehensive income, comprehensive income and cash flows for each of the three years in the three-year period ended December 31, 20012000. In connection with our audits of the consolidated financial statements, we also audited the financial statement schedule as listed in the accompanying Index on Page 59 of this Report on Form 10-K for the year 2000. These consolidated financial statements and financial statement schedule are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements and financial statement schedule based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Diamond Offshore DrillingFlorida East Coast Industries, Inc. and subsidiaries as of December 31, 2001 2000 and 20001999, and the results of their operations and their cash flows for each of the three years in the three-year period ended December 31, 20012000, in conformity with accounting principles generally accepted in the United States of America. Deloitte & Touche LLP HoustonAlso in our opinion, Texas January 22the related financial statement schedule, 2002 (February 14, 2002 as when considered in relation to the settlement of put options described basic consolidated financial statements taken as a whole, presents fairly, in Note 1) DIAMOND OFFSHORE DRILLINGall material respects, INCthe information set forth therein. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN THOUSANDSJacksonville, EXCEPT SHARE AND PER SHARE DATA) ASSETS DECEMBER Florida February 9, 2001 Years ended December 31, 2001 2000, 1999 and 1998 (dollars in thousands, except per share amounts) 2000 1999 1998 Operating Revenues 276,276 323,887 246,812 Operating Expenses (Note 4) 241,092 262,863 189,939 Operating Profit 35,184 61,024 56,873 Other Income (net) (Note 15) 7,832 4,986 13,326 Income before Income Taxes 43,016 66,010 70,199 Provision for Income Taxes (Note 8) 17,258 25,231 26,578 Net Income 25,758 40,779 43,621 Per Share Data: Cash Dividends $0.10 $0.10 $0.10 Basic Net Income Per Share $0.71 $1.12 $1.20 Diluted Net Income Per Share $0.70 $1.12 $1.20 Average Shares Outstanding-Basic 36,364,867 36,301,527 36,286,360 Average Shares Outstanding-Diluted 36,705,908 36,508,631 36,298,906 (Prior years results have been reclassified to conform to current year’s presentation.) See accompanying notes to consolidated financial statements. December 31, 2000 and 1999 (dollars in thousands) 2000 1999 Cash and Cash Equivalents 18,444 15,715 Short-Term Investments (Note 6) 12,942 46,433 Accounts Receivable (net) 34,513 25,130 Materials and Supplies 3,653 5,565 Other Current assetsAssets (Note 8) 8,772 6,408 Total Current Assets 78,324 99,251 Other Investments (Note 6) 1,304 40,404 Properties, Less Accumulated Depreciation (Note 5) 989,283 742,176 Other Assets and Deferred Charges 42,627 29,047 Total Assets 1,111,538 910,878 Accounts Payable 81,814 31,880 Income Taxes 4,834 2,409 Accrued Casualty and Other Liabilities (Note 10) 2,647 2,533 Other Accrued Liabilities 5,568 4,547 Total Current Liabilities 94,863 41,369 Deferred Income Taxes (Note 8) 136,170 133,444 Long-Term Debt 88,000 0 Accrued Casualty, Deferred Revenue, and Other Liabilities (Note 10) 44,401 11,624 Shareholders' Equity: Drilling and other property and equipmentCommon Stock: 65,762 64,049 Class A Common Stock, net of accumulated depreciation.................................. 2,002,873 1,931,182 Goodwill, net of accumulated amortization................... 38,329 55,205 Other assets................................................ 33,900 20,929 Current liabilities: Commitments and contingencies Stockholders' equity: Preferred stock (no par value $0.01, 25,000,000 value; 50,000,000 shares authorized, none issued and outstanding)............... -- -- Common stock (par value $0.01, 500,000,000 shares authorized, 133,457,055 ; 17,674,811 shares issued and 132,053,155 16,875,727 shares outstanding at December 31, 2001 2000, and 133,150,477 37,194,244 shares issued and 36,395,160 outstanding at December 31, 1999 Class B Common Stock, no par value; 100,000,000 shares authorized; 19,609,216 shares issued and outstanding at December 31, 2000).... 1,335 1,332 Additional paid-in capital................................ 1,267,952 1,248,665 Retained earnings......................................... 624,507 517,186 Total stockholders' equity........................ 1,853,146 1,767,853 Total liabilities 2000 and stockholders' equity........ $3,502,517========== $3,079,506========== DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME YEAR ENDED DECEMBER 31, 2001 2000 1999 Revenues.................................................... $885,349 $659,436 $821,024 Operating expenses: Contract drilling......................................... 464,964 433,091 431,523 Depreciation 0 shares issued and amortization............................. 170,017 145,596 142,963 General and administrative................................ 25,502 23,803 22,877 Total operating expenses.......................... 660,483 602,490 597,363 Operating income............................................ 224,866 56,946 223,661 Other income (expense): Gain on sale of assets.................................... 327 14,324 231 Interest income........................................... 48,682 49,525 34,985 Interest expense.......................................... (26,205) (10,272) (9,212) Other, net................................................ 24,695 344 (9,302) Income before income tax expense and extraordinary loss..... 272,365 110,867 240,363 Income tax expense.......................................... (90,820) (38,586) (84,292) Income before extraordinary loss............................ 181,545 72,281 156,071 Extraordinary loss from early debt extinguishment, net of income tax benefit of $4,158.............................. (7,722) -- -- Net income.................................................. $173,823 $ 72,281 $156,071 ======== ======== ======== Earnings per share: Basic Income before extraordinary loss....................... $ 1.37 $ 0.53 $ 1.15 Net............................................... $ 1.31 $ 0.53 $ 1.15 ======== ======== ======== Diluted Income before extraordinary loss....................... $ 1.31 $ 0.53 $ 1.11 Net............................................... $ 1.26 $ 0.53 $ 1.11 ======== ======== ======== Weighted average shares outstanding: Shares of common stock.................................... 132,886 135,164 135,822 Dilutive potential shares of common stock................. 16,408 9,876 9,876 Total weighted average shares outstanding......... 149,294 145,040 145,698 ======== ======== ======== DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (IN THOUSANDS, EXCEPT NUMBER OF SHARES) COMMON STOCK ADDITIONAL ACCUMULATED OTHER COMPREHENSIVE TREASURY STOCK TOTAL -------------------- PAID-IN RETAINED GAINS --------------------- STOCKHOLDERS' SHARES AMOUNT CAPITAL EARNINGS (LOSSES) SHARES AMOUNT EQUITY ----------- ------ ---------- -------- ------------- ---------- -------- ------------- January 1, 1999........... 139,333,635 $1,393 $1,302,806 $547,783 $(7,998) 3,518,100 $(88,726) $1,755,258 Net income................ -- -- -- 156,071 -- -- -- 156,071 Dividends to stockholders............ -- -- -- (67,911) -- -- -- (67,911) Stock options exercised... 8,746 -- 35 -- -- -- -- 35 Exchange rate changes, net..................... -- -- -- -- (983) -- -- (983) Loss on investments, net..................... -- -- -- -- (248) -- -- (248) ----------- ------ ---------- -------- ------- ---------- -------- ---------- outstanding at December 31, 1999......... 139,342,381 1,393 1,302,841 635,943 1999 Retained Earnings 693,384 671,269 Accumulated Other Comprehensive Income-Unrealized Gain On Securities (9,229) 3,518,100 (88,726) 1,842,222 ----------- ------ ---------- -------- ------- ---------- -------- ---------- Net income................ -- -- -- 72,281 -- -- -- 72,281 Treasury stock Purchase................ -- -- -- -- -- 2,705,100 (92,959net) (92,959Notes 6 and 12) Retirement.............. 13 317 Restricted Stock Deferred Compensation (6,223,200Note 13) (621,700) (58,1931,839) Treasury Stock at Cost (799,084 shares) (123,430) -- (6,223,200) 181,685 -- Dividends to stockholders............ -- -- -- (67,608) -- -- -- (67,608) Stock options exercised... 30,803 1 122 -- -- -- -- 123 Put option premiums....... -- -- 3,875 -- -- -- -- 3,875 Conversion of long-term debt.................... 493 -- 20 -- -- -- -- 20 Exchange rate changes, net..................... -- -- -- -- 506 -- -- 506 Gain on investments, net..................... -- -- -- -- 9,393 -- -- 9,393 ----------- ------ ---------- -------- ------- ---------- -------- ---------- December 31, 2000......... 133,150,477 1,332 1,248,665 517,186 670 -- -- 1,767,853 ----------- ------ ---------- -------- ------- ---------- -------- ---------- Net income................ -- -- -- 173,823 -- -- -- 173,823 Treasury stock purchase... -- -- -- -- -- 1,403,900 (37,7689,355) (37,7689,355) Dividends to stockholders............ -- -- -- (66,502) -- -- -- (66,502) Put option premiums....... -- -- 6,876 -- -- -- -- 6,876 Conversion of long-term debt.................... 306,578 3 12,411 -- -- -- -- 12,414 Exchange rate changes, net..................... -- -- -- -- (170) -- -- (170) Loss on investments, net..................... -- -- -- -- (620) -- -- (620) Minimum pension adjustment.............. -- -- -- -- (2,760) -- -- (2,760) ----------- ------ ---------- -------- ------- ---------- -------- ---------- December 31, 2001......... 133,457,055 $1,335 $1,267,952 $624,507 $(2,880) 1,403,900 $(37,768) $1,853,146 =========== ====== ========== ======== ======= ========== ======== ========== The Total Shareholders' Equity 748,104 724,441 Total Liabilities and Shareholders' Equity 1,111,538 910,878 See accompanying notes are an integral part of the to consolidated financial statements. DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEAR ENDED DECEMBER 31, 2001 2000 1999 Net income.................................................. $173,823 $72,281 $156,071 Other comprehensive gains (losses), net of tax: Unrealized holding gain (loss) on investments............. 2,501 3,259 (5,903) net income........................................... (3,121) 6,134 5,655 Comprehensive income........................................ $170,273 $82,180 $154,840 ======== ======= ======== The accompanying notes are an integral part of the consolidated financial statements. DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEAR ENDED DECEMBER 31, 2001 2000 1999 Operating activities: Net income............................................... $ 173,823 $ 72,281 $156,071 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization......................... 170,017 145,596 142,963 Gain on sale of assets................................ (327) (14,324) (231) (Gain) loss on sale of marketable securities.......... (27,141) (2,103) 522 of tax.............................................. 7,722 -- -- Impairment write-down of marketable securities........ -- -- 10,671 Deferred tax provision................................ 74,264 26,155 38,529 Accretion of discount on marketable securities........ (2,369) (7,535) (9,316) Amortization of debt issuance costs................... 1,482 864 541 Amortization of discount on zero coupon convertible debentures.......................................... 14,481 8,033 -- Changes in operating assets and liabilities: Accounts receivable................................... (40,201) (9,883) 90,279 Rig inventory and supplies and other current assets... 3 (9,190) (7,527) Other assets, non-current............................. (11,178) (604) (2,639) Accounts payable and accrued liabilities.............. 6,762 (4,592) (30,540) Taxes payable......................................... 9,443 (12,658) 11,193 Other liabilities, non-current........................ 1,426 3,261 (881) Other, net............................................ (4,176) 1,234 (1,513) Net cash provided by operating activities........ 374,031 196,535 398,122 Investing activities: Capital expenditures.................................. (268,617) (323,924) (324,133) Proceeds from sale of assets.......................... 1,726 33,279 662 Net change in marketable securities................... 1,753 (164,548) 4,343 Securities sold under repurchase agreements........... 199,062 -- -- Proceeds from settlement of forward contracts......... 226 -- -- Net cash used in investing activities............ (65,850) (455,193) (319,128) Financing activities: Acquisition of treasury stock......................... (37,768) (92,959) -- Proceeds from sale of put options..................... 6,876 3,875 -- Payment of dividends.................................. (66,502) (67,608) (67,911) Proceeds from stock options exercised................. -- 123 35 Issuance of zero coupon convertible debentures........ -- 402,178 -- Debt issuance costs-zero coupon convertible debentures.......................................... -- (9,556) -- Lease-leaseback agreement............................. (9,732) 55,000 -- Arrangement fees-lease-leaseback agreement............ -- (255) -- Early extinguishment of debt -- 3.75% convertible subordinated notes.................................. (395,622) -- -- Issuance of 1.5% convertible senior debentures........ 460,000 -- -- Debt issuance costs -- 1.5% convertible senior debentures.......................................... (10,899) -- -- Net cash provided by (used in) financing activities..................................... (53,647) 290,798 (67,876) Net change in cash and cash equivalents.................... 254,534 32,140 11,118 Cash and cash equivalents, beginning of year.......... 144,456 112,316 101,198 Cash and cash equivalents, end of year................ $ 398,990 $ 144,456 $112,316 ========= ========= ======== The accompanying notes are an integral part of the consolidated financial statements. DIAMOND OFFSHORE DRILLING, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
Appears in 1 contract
Sources: Company Profile