UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event
reported): February 18, 2015
PARKER DRILLING COMPANY
(Exact name of registrant as specified
in its charter)
|
Delaware
(State or other jurisdiction
of
incorporation or organization) |
|
73-0618660
(I.R.S. Employer Identification
No.) |
5 Greenway Plaza, Suite 100, Houston,
Texas 77046
(Address of principal executive offices)
(Zip code)
(281) 406-2000
(Registrant’s telephone number,
including area code)
Not Applicable
(Former Address if Changed Since Last
Report)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions (see General Instruction A.2. below):
| o |
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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| o |
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Soliciting material pursuant to Rule 14A-12 under the Exchange Act (17 CFR 240.14a-12) |
| |
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| o |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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| o |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02 |
|
Results of Operations and Financial Condition |
On February
18, 2015, Parker Drilling Company (the “Registrant”) issued a press release announcing results of operations for the fourth
quarter ended December 31, 2014.
A copy of
this press release is attached as Exhibit 99 to this Report on Form 8-K. This information is being furnished pursuant to Item 2.02
of Form 8-K and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated
by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set
forth by specific reference in such a filing.
| Item 9.01 |
|
Financial Statements and Exhibits |
The following
exhibit is furnished herewith:
| 99 | Press
release dated February 18, 2015, issued by the Registrant |
SIGNATURES
Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
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Parker Drilling Company
|
|
| Date: February 19, 2015 |
By: |
/s/ Christopher T. Weber |
|
| |
|
Christopher T. Weber |
|
| |
|
Senior Vice President and Chief Financial Officer |
|
| |
Exhibit 99.1
Parker Drilling Reports 2014 Fourth Quarter and
Full Year Results
HOUSTON, Feb. 18, 2015 /PRNewswire/ -- Parker Drilling
Company (NYSE-PKD), an international provider of contract drilling and drilling-related services and rental tools to the energy
industry, today reported results for the quarter ended December 31, 2014, including net income of $7.8 million, or $0.06 per diluted
share, on revenues of $243.2 million. Fourth quarter adjusted EBITDA was $65.2 million.
"In the fourth quarter we delivered solid results
in a challenging environment. The growing impact of declining oil prices on our business serving the U.S. Gulf of Mexico shallow
and inland waters drilling market was counterbalanced by stronger performance elsewhere, including revenue gains in international
markets," said Gary Rich, chairman, president and chief executive officer. "We also increased the number of international
rigs under contract and secured an additional Operations and Maintenance (O&M) contract. These new contracts should begin making
contributions in the 2015 first quarter. In addition, we took actions to address reduced market demand for our U.S. barge drilling
and rental tools businesses and began to prepare the company for the more challenging conditions we expect in 2015," Mr. Rich
added.
2014 Summary
Results for the year ended December 31, 2014 included
net income of $23.5 million, or $0.19 per diluted share, on revenues of $968.7 million. Included in 2014 results are non-routine
items of $16.4 million, after tax, primarily related to debt extinguishment expense and the 2013 acquisition of ITS. Excluding
these non-routine items, the Company earned net income of $39.9 million, or $0.32 per diluted share. Adjusted EBITDA, excluding
non-routine items, was $260.5 million.
"We made good progress in 2014, strengthening our market
position, investing in growth, and enhancing our ability to provide innovative, reliable and efficient solutions to customers,"
said Mr. Rich. "Our U.S. rental tools business achieved significant growth in the U.S. land and Gulf of Mexico deepwater drilling
markets. Our international rental tools business managed through disruptions in several key markets during the year, yet ended
2014 with the highest quarterly revenues and gross margins of the period. In addition, we continued to raise the operational and
financial performance of our Arctic-class Alaska drilling rigs.
"Average utilization of our international drilling
fleet rose to 70 percent for 2014 from 60 percent for the prior year and we ended the year with eighteen of our twenty-two rigs
under contract. We completed our first full year of operation in the Kurdistan Region of Iraq and added two new projects to our
O&M portfolio. During the year, we reduced our debt by approximately $39 million and refinanced $360 million of debt at lower
interest rates and with extended maturities. In January 2015, we amended our revolving credit facility, expanding it to $200 million
and extending its maturity to 2020, providing greater liquidity and financial flexibility. As a result of the progress we made
in 2014 we are in a strong operating position and solid financial condition as we head into this industry downcycle."
Outlook
"It is clear that 2015 will be a challenging year.
The steep and rapid decline in oil prices has led to a sharp reduction in drilling activity in U.S. land and Gulf of Mexico inland
and shallow water markets. This also is putting increased pressure on prices for our services. We anticipate the downturn in our
U.S. markets will be severe and expect our international markets to be impacted as well, though with less severity. We are taking
actions across the company to lower our cost base, sustain our utilization, manage our cash and liquidity, and preserve our ability
to respond as opportunities develop.
Fourth Quarter Review
Parker Drilling's 2014 fourth quarter revenues of $243.2 million
were approximately the same as 2014 third quarter revenues of $242.0 million. The Company's operating gross margin excluding depreciation
and amortization expense (gross margin) decreased to $75.2 million for the 2014 fourth quarter from $81.2 million for the prior
period, and gross margin as a percentage of revenues was 30.9 percent, compared with 33.6 percent for the 2014 third quarter.
For the Company's combined drilling operations, revenues were
$150.8 million, gross margin was $35.9 million, and gross margin as a percentage of revenues was 23.8 percent. Compared with the
2014 third quarter, revenues declined 2 percent and gross margin declined 21 percent. Revenues from reimbursable expenses, which
have a minimal impact on gross margin, increased by $5.8 million. Excluding reimbursables, revenues declined 7 percent, gross margin
declined 21 percent, and gross margin as a percentage of revenues declined to 28.6 percent from 33.7 percent. The decrease in operating
revenues and gross margin is primarily due to the impact of the rapid decline in oil prices on the U.S. Barge Drilling business.
Revenue gains and improved operating performance in drilling operations outside of the U.S. Gulf of Mexico offset some of that
impact.
| • | U.S. Barge Drilling revenues were $26.7 million, gross
margin was $9.7 million, and gross margin as a percentage of revenues was 36.3 percent. Compared with the 2014 third quarter,
revenues declined 33 percent and gross margin declined 53 percent. The declines in revenues and gross margin reflect the impact
of the steep decline in oil prices. This led to lower rig fleet utilization and a decline in realized average dayrates. |
| • | U.S. Drilling revenues were $20.8 million, gross margin
was $6.4 million and gross margin as a percentage of revenues was 30.8 percent. Compared with the 2014 third quarter, revenues
increased 6 percent and gross margin increased 21 percent, primarily due to higher realized average dayrates and lower operating
costs. |
| • | International Drilling revenues were $95.2 million, gross
margin was $19.0 million, and gross margin as a percentage of revenues was 19.9 percent. Compared with the 2014 third quarter,
revenues increased 8 percent and gross margin increased 3 percent. Excluding
reimbursables, revenues increased 2 percent, gross margin increased 3 percent, and gross margin as a percentage of revenues increased
to 26.2 percent from 26.0 percent. The increase in operating revenues and gross margin is primarily due to the start-up of Rig
216 in Kazakhstan during the 2014 fourth quarter. |
| • | Technical Services revenues were $8.1 million, gross
margin was $0.8 million, and gross margin as a percentage of revenues was 10.1 percent. Revenues increased $1.3 million and gross
margin declined $0.2 million, reflecting shifts in work requirements as projects develop. |
Rental Tools revenues were $92.4 million, gross margin
was $39.3 million and gross margin as a percentage of revenues was 42.6 percent. Compared with the 2014 third quarter, revenues
increased 5 percent and gross margin increased 10 percent. The increases in revenues and gross margin were primarily due to growth
in U.S. Gulf of Mexico offshore deepwater activity and key international markets. This was partially offset by increased handling
costs for inbound tools as business slowed in the U.S. Gulf of Mexico shelf and inland waters markets, and, late in the quarter,
in the U.S. land drilling market.
General and Administrative Expense were $9.7 million
for the 2014 fourth quarter, compared with $9.4 million for the 2014 third quarter. Capital expenditures for 2014 were $176.8 million.
"We believe we are in sound condition, prepared
to meet the challenges ahead and capture opportunities that arise. We will continue to push forward on our strategic objectives
and on strengthening our core competencies to enhance our ability to serve customers and produce value for the company," concluded
Mr. Rich.
Conference Call
Parker Drilling has scheduled a conference call for
10:00 a.m. Central Time (11:00 a.m. Eastern Time) on Thursday, February 19, 2015, to review reported results. The call will be
available by telephone at (888) 510-1786. The call can also be accessed through the Investor Relations section of the Company's
website. A replay of the call can be accessed on the Company's website for 12 months and will be available by telephone from February
19, 2015 through February 26, 2015 at (719) 457-0820, using the access code 5031371#.
Cautionary Statement
This press release contains certain statements
that may be deemed to be "forward-looking statements" within the meaning of the Securities Act of 1933 and the
Securities Exchange Act of 1934. All statements in this press release other than statements of historical facts that address
activities, events or developments that the Company expects, projects, believes, or anticipates will or may occur in the
future are forward-looking statements. These statements include, but are not limited to, statements about anticipated future
financial or operational results; the outlook for rental tools utilization and rig utilization and dayrates; the results of
past capital expenditures; scheduled start-ups of rigs; general industry conditions such as the demand for drilling and the
factors affecting demand; competitive advantages such as technological innovation; future operating results of the Company's
rigs, rental tools operations and projects under management; future capital expenditures; expansion and growth opportunities;
acquisitions or joint ventures; asset sales; successful negotiation and execution of contracts; scheduled delivery of
drilling rigs or rental equipment for operation; the strengthening of the Company's financial position; increases in
utilization or market share; outcomes of legal proceedings; compliance with credit facility and indenture covenants; and
similar matters. These statements are based on certain assumptions made by the Company based on management's experience and
perception of historical trends, current conditions, anticipated future developments and other factors believed to be
appropriate. Although the Company believes that its expectations stated in this press release are reasonable, such
statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the
Company, that could cause actual results to differ materially from those implied or expressed by the forward-looking
statements. These include risks relating to changes in worldwide economic and business conditions, fluctuations in oil and
natural gas prices, compliance with existing laws and changes in laws or government regulations, the failure to realize the
benefits of, and other risks relating to, acquisitions, the risk of cost overruns, our ability to refinance our debt and
other important factors, many of which could adversely affect market conditions, demand for our services, and costs, and all
or any one of which could cause actual results to differ materially from those projected. For more information, see
"Risk Factors" in the Company's Annual Report filed on Form 10-K with the Securities and Exchange Commission and
other public filings and press releases. Each forward-looking statement speaks only as of the date of this press release and
the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new
information, future events or otherwise.
Company Description
Parker Drilling (NYSE: PKD) provides contract drilling and
drilling-related services and rental tools to the energy industry. The Company's drilling services business serves operators in
the inland waters of the U.S. Gulf of Mexico utilizing Parker Drilling's barge rig fleet and in select international markets and
harsh-environment regions utilizing Parker Drilling-owned and customer-owned equipment. The Company's rental tools business supplies
premium equipment and well services to operators on land and offshore in the U.S. and international markets. More information
about Parker Drilling can be found on the Company's website at www.parkerdrilling.com.
PARKER DRILLING
COMPANY
Consolidated Condensed
Balance Sheets
(Dollars in Thousands, Except Per Share Data)
| | |
December 31, 2014 | | |
December 31, 2013 | |
| | |
(Unaudited) | | |
| |
| ASSETS | |
| | |
| |
| CURRENT ASSETS | |
| | | |
| | |
| Cash and Cash Equivalents | |
$ | 108,456 | | |
$ | 148,689 | |
| Accounts and Notes Receivable, Net | |
| 270,952 | | |
| 257,889 | |
| Rig Materials and Supplies | |
| 47,943 | | |
| 41,781 | |
| Deferred Costs | |
| 5,673 | | |
| 13,682 | |
| Deferred Income Taxes | |
| 7,476 | | |
| 9,940 | |
| Other Current Assets | |
| 29,279 | | |
| 47,302 | |
| TOTAL CURRENT ASSETS | |
| 469,779 | | |
| 519,283 | |
| | |
| | | |
| | |
| PROPERTY, PLANT AND EQUIPMENT, NET | |
| 895,940 | | |
| 871,356 | |
| | |
| | | |
| | |
| OTHER ASSETS | |
| | | |
| | |
| Deferred Income Taxes | |
| 122,689 | | |
| 102,420 | |
| Other Assets | |
| 32,251 | | |
| 41,697 | |
| TOTAL OTHER ASSETS | |
| 154,940 | | |
| 144,117 | |
| | |
| | | |
| | |
| TOTAL ASSETS | |
$ | 1,520,659 | | |
$ | 1,534,756 | |
| | |
| | | |
| | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |
| | | |
| | |
| CURRENT LIABILITIES | |
| | | |
| | |
| Current Portion of Long-Term Debt | |
$ | 10,000 | | |
$ | 25,000 | |
| Accounts Payable and Accrued Liabilities | |
| 168,665 | | |
| 182,152 | |
| TOTAL CURRENT LIABILITIES | |
| 178,665 | | |
| 207,152 | |
| | |
| | | |
| | |
| LONG-TERM DEBT | |
| 605,000 | | |
| 628,781 | |
| | |
| | | |
| | |
| LONG-TERM DEFERRED TAX LIABILITY | |
| 52,115 | | |
| 38,767 | |
| | |
| | | |
| | |
| OTHER LONG-TERM LIABILITIES | |
| 18,665 | | |
| 26,914 | |
| | |
| | | |
| | |
| TOTAL CONTROLLING INTEREST IN STOCKHOLDERS' EQUITY | |
| 662,431 | | |
| 631,696 | |
| Noncontrolling interest | |
| 3,783 | | |
| 1,446 | |
| | |
| | | |
| | |
| TOTAL EQUITY | |
| 666,214 | | |
| 633,142 | |
| | |
| | | |
| | |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | |
$ | 1,520,659 | | |
$ | 1,534,756 | |
| Current Ratio | |
| 2.63 | | |
| 2.51 | |
| Total Debt as a Percent of Capitalization | |
| 48 | % | |
| 51 | % |
| Book Value Per Common Share | |
$ | 5.43 | | |
$ | 5.24 | |
PARKER DRILLING
COMPANY
Consolidated Statement
Of Operations
(Dollars in Thousands,
Except Per Share Data)
(Unaudited)
| | |
| | |
| | |
Three Months Ended September | |
| | |
Three Months Ended December 31, | | |
30, | |
| | |
2014 | | |
2013 | | |
2014 | |
| REVENUES | |
$ | 243,213 | | |
$ | 243,321 | | |
$ | 242,012 | |
| | |
| | | |
| | | |
| | |
| EXPENSES: | |
| | | |
| | | |
| | |
| Operating Expenses | |
| 167,990 | | |
| 158,380 | | |
| 160,797 | |
| Depreciation and Amortization | |
| 38,455 | | |
| 36,378 | | |
| 36,149 | |
| | |
| 206,445 | | |
| 194,758 | | |
| 196,946 | |
| TOTAL OPERATING GROSS MARGIN | |
| 36,768 | | |
| 48,563 | | |
| 45,066 | |
| | |
| | | |
| | | |
| | |
| General and Administrative Expense | |
| (9,675 | ) | |
| (18,738 | ) | |
| (9,370 | ) |
| Provision for Reduction in Carrying Value of Certain Assets | |
| — | | |
| (2,544 | ) | |
| — | |
| Gain (Loss) on Disposition of Assets, Net | |
| 621 | | |
| 1,234 | | |
| (457 | ) |
| | |
| | | |
| | | |
| | |
| TOTAL OPERATING INCOME | |
| 27,714 | | |
| 28,515 | | |
| 35,239 | |
| | |
| | | |
| | | |
| | |
| OTHER INCOME AND (EXPENSE): | |
| | | |
| | | |
| | |
| Interest Expense | |
| (10,779 | ) | |
| (13,946 | ) | |
| (10,848 | ) |
| Interest Income | |
| 39 | | |
| 58 | | |
| 36 | |
| Other | |
| 1,148 | | |
| 2,255 | | |
| (536 | ) |
| TOTAL OTHER EXPENSE | |
| (9,592 | ) | |
| (11,633 | ) | |
| (11,348 | ) |
| | |
| | | |
| | | |
| | |
| INCOME BEFORE INCOME TAXES | |
| 18,122 | | |
| 16,882 | | |
| 23,891 | |
| | |
| | | |
| | | |
| | |
| INCOME TAX EXPENSE | |
| 9,983 | | |
| 6,766 | | |
| 11,014 | |
| | |
| | | |
| | | |
| | |
| NET INCOME | |
| 8,139 | | |
| 10,116 | | |
| 12,877 | |
| | |
| | | |
| | | |
| | |
| Less: net income (loss) attributable to noncontrolling interest | |
| 386 | | |
| (58 | ) | |
| 311 | |
| NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | |
$ | 7,753 | | |
$ | 10,174 | | |
$ | 12,566 | |
| EARNINGS PER SHARE - BASIC | |
| | | |
| | | |
| | |
| Net Income | |
$ | 0.06 | | |
$ | 0.08 | | |
$ | 0.10 | |
| EARNINGS PER SHARE - DILUTED | |
$ | 0.06 | | |
$ | 0.08 | | |
$ | 0.10 | |
| Net Income | |
| | | |
| | | |
| | |
| NUMBER OF COMMON SHARES USED IN COMPUTING EARNINGS PER SHARE | |
| | | |
| | | |
| | |
| Basic | |
| 121,755,421 | | |
| 119,930,516 | | |
| 121,523,674 | |
| Diluted | |
| 123,295,412 | | |
| 121,608,427 | | |
| 123,177,753 | |
PARKER DRILLING
COMPANY
Consolidated Statement
Of Operations
(Dollars in Thousands, Except Per Share Data)
(Unaudited)
| | |
| | |
Year Ended December 31, | |
| | |
2014 | | |
2013 | | |
2012 | |
| REVENUES | |
$ | 968,684 | | |
$ | 874,172 | | |
$ | 677,761 | |
| | |
| | | |
| | | |
| | |
| EXPENSES: | |
| | | |
| | | |
| | |
| Operating Expenses | |
| 669,381 | | |
| 571,672 | | |
| 413,188 | |
| Depreciation and Amortization | |
| 145,121 | | |
| 134,053 | | |
| 113,017 | |
| | |
| 814,502 | | |
| 705,725 | | |
| 526,205 | |
| TOTAL OPERATING GROSS MARGIN | |
| 154,182 | | |
| 168,447 | | |
| 151,556 | |
| | |
| | | |
| | | |
| | |
| General and Administrative Expense | |
| (35,016 | ) | |
| (68,025 | ) | |
| (46,257 | ) |
| Provision for Reduction in Carrying Value of Certain Assets | |
| — | | |
| (2,544 | ) | |
| — | |
| Gain on Disposition of Assets, Net | |
| 1,054 | | |
| 3,994 | | |
| 1,974 | |
| | |
| | | |
| | | |
| | |
| TOTAL OPERATING INCOME | |
| 120,220 | | |
| 101,872 | | |
| 107,273 | |
| | |
| | | |
| | | |
| | |
| OTHER INCOME AND (EXPENSE): | |
| | | |
| | | |
| | |
| Interest Expense | |
| (44,265 | ) | |
| (47,820 | ) | |
| (33,542 | ) |
| Interest Income | |
| 195 | | |
| 2,450 | | |
| 153 | |
| Loss on extinguishment of debt | |
| (30,152 | ) | |
| (5,218 | ) | |
| (2,130 | ) |
| Change in fair value of derivative positions | |
| — | | |
| 53 | | |
| 55 | |
| Other | |
| 2,539 | | |
| 1,450 | | |
| (832 | ) |
| TOTAL OTHER EXPENSE | |
| (71,683 | ) | |
| (49,085 | ) | |
| (36,296 | ) |
| | |
| | | |
| | | |
| | |
| INCOME BEFORE INCOME TAXES | |
| 48,537 | | |
| 52,787 | | |
| 70,977 | |
| | |
| | | |
| | | |
| | |
| INCOME TAX EXPENSE | |
| 24,076 | | |
| 25,608 | | |
| 33,879 | |
| | |
| | | |
| | | |
| | |
| NET INCOME | |
| 24,461 | | |
| 27,179 | | |
| 37,098 | |
| | |
| | | |
| | | |
| | |
| Less: net income (loss) attributable to noncontrolling interest | |
| 1,010 | | |
| 164 | | |
| (215 | ) |
| NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | |
$ | 23,451 | | |
$ | 27,015 | | |
$ | 37,313 | |
| | |
| | | |
| | | |
| | |
| EARNINGS PER SHARE - BASIC | |
$ | 0.19 | | |
$ | 0.23 | | |
$ | 0.32 | |
| | |
| | | |
| | | |
| | |
| EARNINGS PER SHARE - DILUTED | |
$ | 0.19 | | |
$ | 0.22 | | |
$ | 0.31 | |
| | |
| | | |
| | | |
| | |
| NUMBER OF COMMON SHARES USED IN COMPUTING | |
| | | |
| | | |
| | |
| EARNINGS PER SHARE: | |
| | | |
| | | |
| | |
| Basic | |
| 121,186,464 | | |
| 119,284,468 | | |
| 117,721,135 | |
| Diluted | |
| 123,076,648 | | |
| 121,224,550 | | |
| 119,093,590 | |
PARKER DRILLING COMPANY
Selected Financial Data
(Dollars in Thousands)
(Unaudited)
| |
|
Three Months Ended |
|
|
Year Ended December 31, |
|
|
|
|
| |
|
December 31, |
|
|
September 30, |
|
|
|
|
|
|
|
|
|
|
| |
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2014 |
|
|
2013 |
|
|
2012 |
|
| REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rental Tools |
|
$ |
92,378 |
|
|
$ |
81,324 |
|
|
$ |
87,711 |
|
|
$ |
347,766 |
|
|
$ |
310,041 |
|
|
$ |
246,900 |
|
| U.S. Barge Drilling |
|
|
26,705 |
|
|
|
34,770 |
|
|
|
39,630 |
|
|
|
137,113 |
|
|
|
136,855 |
|
|
|
123,672 |
|
| U.S. Drilling |
|
|
20,841 |
|
|
|
18,690 |
|
|
|
19,687 |
|
|
|
79,984 |
|
|
|
66,928 |
|
|
|
1,387 |
|
| International Drilling |
|
|
95,193 |
|
|
|
97,568 |
|
|
|
88,173 |
|
|
|
360,588 |
|
|
|
333,962 |
|
|
|
291,772 |
|
| Technical Services |
|
|
8,096 |
|
|
|
10,969 |
|
|
|
6,811 |
|
|
|
43,233 |
|
|
|
26,386 |
|
|
|
14,030 |
|
| Construction Contract |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Total Revenues |
|
$ |
243,213 |
|
|
$ |
243,321 |
|
|
$ |
242,012 |
|
|
$ |
968,684 |
|
|
$ |
874,172 |
|
|
$ |
677,761 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rental Tools |
|
$ |
53,058 |
|
|
$ |
45,736 |
|
|
$ |
51,987 |
|
|
$ |
210,643 |
|
|
$ |
163,024 |
|
|
$ |
88,884 |
|
| U.S. Barge Drilling |
|
|
17,000 |
|
|
|
17,416 |
|
|
|
18,939 |
|
|
|
73,354 |
|
|
|
71,260 |
|
|
|
69,572 |
|
| U.S. Drilling |
|
|
14,422 |
|
|
|
14,663 |
|
|
|
14,395 |
|
|
|
57,716 |
|
|
|
55,027 |
|
|
|
9,538 |
|
| International Drilling |
|
|
76,235 |
|
|
|
75,904 |
|
|
|
69,713 |
|
|
|
287,971 |
|
|
|
262,884 |
|
|
|
231,280 |
|
| Technical Services |
|
|
7,275 |
|
|
|
9,389 |
|
|
|
5,763 |
|
|
|
39,697 |
|
|
|
24,205 |
|
|
|
13,914 |
|
| Construction Contract |
|
|
— |
|
|
|
(4,728 |
) |
|
|
— |
|
|
|
— |
|
|
|
(4,728 |
) |
|
|
— |
|
| Total Operating Expenses |
|
$ |
167,990 |
|
|
$ |
158,380 |
|
|
$ |
160,797 |
|
|
$ |
669,381 |
|
|
$ |
571,672 |
|
|
$ |
413,188 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| OPERATING GROSS MARGIN: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rental Tools |
|
$ |
39,320 |
|
|
$ |
35,588 |
|
|
$ |
35,724 |
|
|
$ |
137,123 |
|
|
$ |
147,017 |
|
|
$ |
158,016 |
|
| U.S. Barge Drilling |
|
|
9,705 |
|
|
|
17,354 |
|
|
|
20,691 |
|
|
|
63,759 |
|
|
|
65,595 |
|
|
|
54,100 |
|
| U.S. Drilling |
|
|
6,419 |
|
|
|
4,027 |
|
|
|
5,292 |
|
|
|
22,268 |
|
|
|
11,901 |
|
|
|
(8,151 |
) |
| International Drilling |
|
|
18,958 |
|
|
|
21,664 |
|
|
|
18,460 |
|
|
|
72,617 |
|
|
|
71,078 |
|
|
|
60,492 |
|
| Technical Services |
|
|
821 |
|
|
|
1,580 |
|
|
|
1,048 |
|
|
|
3,536 |
|
|
|
2,181 |
|
|
|
116 |
|
| Construction Contract |
|
|
— |
|
|
|
4,728 |
|
|
|
— |
|
|
|
— |
|
|
|
4,728 |
|
|
|
— |
|
| Depreciation and Amortization |
|
|
(38,455 |
) |
|
|
(36,378 |
) |
|
|
(36,149 |
) |
|
|
(145,121 |
) |
|
|
(134,053 |
) |
|
|
(113,017 |
) |
| Total Operating Gross Margin |
|
$ |
36,768 |
|
|
$ |
48,563 |
|
|
$ |
45,066 |
|
|
$ |
154,182 |
|
|
$ |
168,447 |
|
|
$ |
151,556 |
|
PARKER DRILLING
COMPANY
Adjusted EBITDA
(Dollars in Thousands)
(Unaudited)
| | |
Three Months Ended | |
| | |
December 31, | | |
September 30, | | |
June 30, | | |
March 31, | | |
December 31, | |
| | |
2014 | | |
2014 | | |
2014 | | |
2014 | | |
2013 | |
| Net Income (Loss) Attributable to Controlling Interest | |
$ | 7,753 | | |
$ | 12,566 | | |
$ | 15,681 | | |
$ | (12,549 | ) | |
$ | 10,172 | |
| Adjustments: | |
| | | |
| | | |
| | | |
| | | |
| | |
| Income Tax (Benefit) Expense | |
| 9,983 | | |
| 11,014 | | |
| 11,702 | | |
| (8,623 | ) | |
| 6,766 | |
| Interest Expense | |
| 10,779 | | |
| 10,848 | | |
| 10,599 | | |
| 12,039 | | |
| 13,946 | |
| Other Income and Expense | |
| (1,187 | ) | |
| 500 | | |
| (641 | ) | |
| 28,746 | | |
| (2,313 | ) |
| (Gain) Loss on Disposition of Assets, Net | |
| (621 | ) | |
| 457 | | |
| (1,019 | ) | |
| 129 | | |
| (1,234 | ) |
| Depreciation and Amortization | |
| 38,455 | | |
| 36,149 | | |
| 36,180 | | |
| 34,337 | | |
| 36,378 | |
| Provision for Reduction in Carrying Value of Certain | |
| | | |
| | | |
| | | |
| | | |
| | |
| Assets | |
| — | | |
| — | | |
| — | | |
| — | | |
| 2,544 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Adjusted EBITDA* | |
| 65,162 | | |
| 71,534 | | |
| 72,502 | | |
| 54,079 | | |
| 66,259 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Adjustments: | |
| | | |
| | | |
| | | |
| | | |
| | |
| Non-routine Items | |
| — | | |
| (1,250 | ) | |
| (1,500 | ) | |
| — | | |
| 3,306 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Adjusted EBITDA after Non-routine Items | |
$ | 65,162 | | |
$ | 70,284 | | |
$ | 71,002 | | |
$ | 54,079 | | |
$ | 69,565 | |
*Adjusted EBITDA, a non-GAAP financial measure, excludes items
that management believes are of a non-routine nature and which detract from an understanding of normal operating performance and
comparisons with other periods. Management also believes that results excluding these items are more comparable to estimates provided
by securities analysts and used by them in evaluating the Company's performance.
CONTACT: Investor Relations, Richard Bajenski, Director,
Investor Relations, (281) 406-2030; or Media Relations, Stephanie Dixon, Manager, Marketing & Corporate Communications, (281)
406-2212