1996 Annual Report  




Smith International, Inc. is a leading worldwide supplier of products and services to the oil and gas exploration and production industry, the mining industry and industrial markets. The Company, headquartered in Houston, operates through four business units and employs approximately 6,000 full time personnel. The Company's common stock is traded on the New York and Pacific Stock Exchanges under the symbol SII.

The Company's four business units - M-I Drilling Fluids L.L.C., Smith Tool, Smith Drilling & Completions and Smith Diamond Technology - provide a comprehensive line of products and engineering services. These include drilling and completion fluid systems, solids-control equipment, waste management services, three-cone drill bits, diamond drill bits, drilling tools, underreamers, sidetracking systems and liner hangers.

Years Ended December 31

 1996 1995 % Change 95-96 1994
SUMMARY STATEMENT OF OPERATIONS DATA        
Revenues $1,156,658 $874,544 32% $653,901
Operating Income Before Interest and Taxes $132,520 $86,248 54% $60,104
Net Income $64,444 $45,592 41% $35,879
Common Shares Outstanding:        
----------Actual at Year End 40,157 39,807 1% 39,433
----------Weighted Average for Period 39,880 39,383 1% 39,065
Earnings Per Share $1.62 $1.16 40% $0.92
 
SUMMARY BALANCE SHEET DATA        
Current Assets $665,277 $485,291 37% $421,596
Total Assets 1,074,582 702,844 53% 619,780
Current Liabilities 300,501 185,289 62% 164,247
Total Debt 303,426 142,385 113% 130,852
Shareholders' Equity 368,536 300,886 22% 253,121
         
OTHER DATA        
Depreciation and Amortization $31,601 $25,540 24% $21,802
Capital Expenditures, Net $61,247 $25,084 144% $13,705
Number of Employees 5,975 4,692 27% 4,089
Shareholders of Record 3,206 4,760 (33%) 5,070