netrashetty
Netra Shetty
a21, Inc. (OTCBB: ATWO) aggregates visual content from photographers, photography agencies, archives, libraries, and private collections; and licenses that content for its customers. The company's customers include advertising and design agencies, publishing and media entities, in-house communication departments and outside corporate communications firms, small and home office businesses, and the general public. The company sells its products directly and through a global network of 150 distributors in over 100 countries. It also markets its products through print advertising, direct mail, Web mail, and telemarketing.
a21 was formed as in investment company in 2000 and acquired the stock photography agency SuperStock in 2004. They moved into SuperStock's headquarters in Jacksonville, FL and used SuperStock as a vehicle for further expansion. In 2005 they acquired Ingram Publishing Ltd., a UK-based provider of subscription and Royalty-Free images as well as vector graphics and fonts, vehicle outline templates, and print price guides. The following year they acquired ArtSelect, an Iowa-based provider of online technology and fulfillment infrastructure for retailers in the custom framed Art and Wall Décor market. In late 2007 they announced plans to launch a new Royalty-Free only brand named MediaMagnet; however the brand was not successful. MediaMagnet images are now only available for sale through SuperStock.
In 2009, it auctioned off SuperStock, MediaMagnet, Ingram, and ArtSelect due to bankruptcy.
Atwood Oceanics is awarded contracts, through a competitive bidding process, in which it rents its offshore drilling rigs out to oil & gas drilling & exploration companies for a set rate. To increase operating margins, ATW must maximize the number of days its rigs are on contract (utilization rate).[2]
Compared to competitors such as Noble (NE) and Transocean (RIG) who have over 50 and 135 rigs, respectively, ATW has a small fleet. [3][4] Therefore, Atwood still has significantly fewer rigs under contract compared to its competitors, despite its near perfect utilization rates, keeping its overall revenue lower.
Business & Financial Metrics[5]
In 2009, ATW generated $250.7 in net income on $586.5 million in total revenues. This represents a 16.4% increase in net income and a 11.4% increase in total revenues from 2008, when the company earned $328.2 million on revenue of $526.6 million.
Business by Rigs
Atwood operates four types of rigs:
Semi-Submersible (SS) (74% of 2009 revenue)[6] rigs are designed for the deepest waters and are more expensive to operate than jack-ups.
Semi-Submersible Tender Assist (SSTA) (5% of 2009 revenue)[7] rigs are the same as semi-submersibles except the equipment is installed on permanent offshore platforms.
Jack-up (JU) rigs (18% of 2009 revenue)[7] are lowered into the water and then jacked up to the surface. They cannot operate in waters as deep as semi-submersibles can since they are limited by the legs of the rig.
Submersible (S) (3% of 2009 revenue)[7] rigs rest on the sea floor and are meant to operate in shallow water depths from 9 to 70 feet.[8]
Trends and Forces
Deepwater Oil Exploration is the Hot New Technology for Oilfield Services Companies but Atwood isn't Yet in the Game
Extreme oil prices also make deep-water drilling economically feasible for the major oil companies.[9] Atwood cannot fully capitalize on this as its fleet's biggest semi-submersibles (Atwood Eagle, Hunter, Falcon, Southern Cross) only drill to 5,000 feet while strong competitors such as Transocean (RIG) and Noble (NE) can tap into deep basins with 12,000 foot rigs. [10] However, Atwood does have orders in place with Jurong Shipyard for two semi-submersibles with at least one being able to reach 10,000 feet. [11]
Competition
Atwood competes with several other offshore drilling companies for contracts. Due to its small fleet, ATW is dwarfed by its competitors in rig quantity and revenue. Atwood's main competitors include:
Transocean (RIG) is the largest company in the offshore drilling market with 139 rigs (jackups, semi-submersibles, drillships). [4]
Diamond Offshore Drilling (DO) operates 44 rigs (30 semi-submersibles, 13 jack-ups, 1 drillship) with 2 more jack-ups under construction. [12]
Pride International (PDE) maintains 64 offshore rigs internationally (2 deepwater drillships, 12 semi-submersibles, 28 jackups, 10 platform rigs, 5 managed deepwater drilling rigs, 7 Eastern Hemisphere-based land drilling rigs. [13]
Noble (NE) operates 62 rigs worldwide (13 semi-submersibles, 3 drillships, 43 jackups, 3 submersibles).
a21 was formed as in investment company in 2000 and acquired the stock photography agency SuperStock in 2004. They moved into SuperStock's headquarters in Jacksonville, FL and used SuperStock as a vehicle for further expansion. In 2005 they acquired Ingram Publishing Ltd., a UK-based provider of subscription and Royalty-Free images as well as vector graphics and fonts, vehicle outline templates, and print price guides. The following year they acquired ArtSelect, an Iowa-based provider of online technology and fulfillment infrastructure for retailers in the custom framed Art and Wall Décor market. In late 2007 they announced plans to launch a new Royalty-Free only brand named MediaMagnet; however the brand was not successful. MediaMagnet images are now only available for sale through SuperStock.
In 2009, it auctioned off SuperStock, MediaMagnet, Ingram, and ArtSelect due to bankruptcy.
Atwood Oceanics is awarded contracts, through a competitive bidding process, in which it rents its offshore drilling rigs out to oil & gas drilling & exploration companies for a set rate. To increase operating margins, ATW must maximize the number of days its rigs are on contract (utilization rate).[2]
Compared to competitors such as Noble (NE) and Transocean (RIG) who have over 50 and 135 rigs, respectively, ATW has a small fleet. [3][4] Therefore, Atwood still has significantly fewer rigs under contract compared to its competitors, despite its near perfect utilization rates, keeping its overall revenue lower.
Business & Financial Metrics[5]
In 2009, ATW generated $250.7 in net income on $586.5 million in total revenues. This represents a 16.4% increase in net income and a 11.4% increase in total revenues from 2008, when the company earned $328.2 million on revenue of $526.6 million.
Business by Rigs
Atwood operates four types of rigs:
Semi-Submersible (SS) (74% of 2009 revenue)[6] rigs are designed for the deepest waters and are more expensive to operate than jack-ups.
Semi-Submersible Tender Assist (SSTA) (5% of 2009 revenue)[7] rigs are the same as semi-submersibles except the equipment is installed on permanent offshore platforms.
Jack-up (JU) rigs (18% of 2009 revenue)[7] are lowered into the water and then jacked up to the surface. They cannot operate in waters as deep as semi-submersibles can since they are limited by the legs of the rig.
Submersible (S) (3% of 2009 revenue)[7] rigs rest on the sea floor and are meant to operate in shallow water depths from 9 to 70 feet.[8]
Trends and Forces
Deepwater Oil Exploration is the Hot New Technology for Oilfield Services Companies but Atwood isn't Yet in the Game
Extreme oil prices also make deep-water drilling economically feasible for the major oil companies.[9] Atwood cannot fully capitalize on this as its fleet's biggest semi-submersibles (Atwood Eagle, Hunter, Falcon, Southern Cross) only drill to 5,000 feet while strong competitors such as Transocean (RIG) and Noble (NE) can tap into deep basins with 12,000 foot rigs. [10] However, Atwood does have orders in place with Jurong Shipyard for two semi-submersibles with at least one being able to reach 10,000 feet. [11]
Competition
Atwood competes with several other offshore drilling companies for contracts. Due to its small fleet, ATW is dwarfed by its competitors in rig quantity and revenue. Atwood's main competitors include:
Transocean (RIG) is the largest company in the offshore drilling market with 139 rigs (jackups, semi-submersibles, drillships). [4]
Diamond Offshore Drilling (DO) operates 44 rigs (30 semi-submersibles, 13 jack-ups, 1 drillship) with 2 more jack-ups under construction. [12]
Pride International (PDE) maintains 64 offshore rigs internationally (2 deepwater drillships, 12 semi-submersibles, 28 jackups, 10 platform rigs, 5 managed deepwater drilling rigs, 7 Eastern Hemisphere-based land drilling rigs. [13]
Noble (NE) operates 62 rigs worldwide (13 semi-submersibles, 3 drillships, 43 jackups, 3 submersibles).
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