The news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are subject to a number of risks, uncertainties and assumptions, including the factors described in Hercules' most recent periodic reports and other documents filed with the Securities and Exchange Commission, which are available free of charge at the SEC's website at www.sec.gov or the Company's website at www.herculesoffshore.com. Hercules cautions you that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected or implied in these statements.
(All currency is in US$ unless otherwise noted)
HERCULES OFFSHORE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
September 30, December 31,
2006 2005
ASSETS
CURRENT ASSETS
Cash and cash equivalents $84,966 $47,575
Restricted cash 250 -
Accounts receivable, net 66,876 38,484
Deposits 309 33
Assets held for sale - 2,040
Insurance claims receivable 12,186 5,919
Prepaid expenses and other 28,564 6,160
Total current assets 193,151 100,211
PROPERTY AND EQUIPMENT, net 354,794 247,443
OTHER ASSETS 8,750 7,171
Total assets $556,695 $354,825
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term debt $1,400 $1,400
Insurance note payable 12,030 2,401
Accounts payable 29,701 13,281
Accrued liabilities 13,147 11,165
Taxes payable 1,075 122
Interest payable 2,120 1,759
Other current liabilities 4,558 -
Total current liabilities 64,031 30,128
LONG-TERM DEBT, net of current
portion 92,200 93,250
DEFERRED INCOME TAXES 43,331 15,504
OTHER LIABILITIES 526 -
STOCKHOLDERS' EQUITY 356,607 215,943
Total liabilities and
stockholders' equity $556,695 $354,825
HERCULES OFFSHORE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2006 2005 2006 2005
REVENUES
Contract drilling
services $54,298 $28,248 $123,862 $79,427
Marine services 42,914 13,937 105,780 33,888
97,212 42,185 229,642 113,315
COSTS AND EXPENSES
Operating expenses for
contract drilling
services, excluding
depreciation and
amortization 18,327 14,043 43,256 37,379
Operating expenses for
marine services,
excluding depreciation
and amortization 14,870 7,757 38,137 18,184
Depreciation and
amortization 9,097 3,753 22,582 9,075
General and
administrative,
excluding depreciation
and amortization 7,209 4,031 20,396 9,136
49,503 29,584 124,371 73,774
OPERATING INCOME 47,709 12,601 105,271 39,541
OTHER INCOME (EXPENSE)
Interest expense (2,575) (2,735) (6,824) (7,572)
Gain on disposal of
assets 1,110 - 30,690 -
Loss on early
retirement of debt - - - (2,786)
Other, net 874 244 2,697 479
INCOME BEFORE INCOME TAXES 47,118 10,110 131,834 29,662
INCOME TAX PROVISION
Current income tax (7,166) - (20,658) -
Deferred income tax (10,273) - (27,652) -
NET INCOME $29,679 $10,110 $83,524 $29,662
EARNINGS PER SHARE:
Basic $0.93 $0.42 $2.67 $1.24
Diluted $0.90 $0.41 $2.57 $1.22
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic 31,884,566 23,922,850 31,234,533 23,855,353
Diluted 33,069,992 24,630,628 32,440,950 24,324,935
(CONTINUA)
