HOUSTON, Feb. 17, 2016 /PRNewswire/ -- Parker
Drilling Company (NYSE: PKD) today reported results for the quarter
ended December 31, 2015, including a net loss of $35.6 million, or $(0.29) per share, on revenues of $148.7 million.
The net loss included the following pre-tax charges:
* $6.1 million of asset and
inventory write-offs, which include $4.8
million to reduce the carrying value of two rigs and
$1.3 million in inventory writedowns,
related to the Company's decision to no longer provide its drilling
services in Colombia;
* $4.3 million of non-cash charges
to increase the provision for the reduction in carrying value of
certain drilling-related assets; and,
* $4.8 million loss associated
with the sale of the Company's investment in a joint venture.
Excluding these pre-tax charges, the adjusted net loss was
$23.3 million, or $(0.19) per share.
Fourth quarter Adjusted EBITDA was $28.6
million, compared with $35.4
million for the preceding quarter.
Gary Rich, the Company's
Chairman, President and CEO said, "Cost reductions, particularly
those implemented in the second half of the year, resulted in
fourth quarter Adjusted EBITDA that was slightly higher than we
anticipated despite a 14 percent sequential decline in revenues. We
experienced activity declines across all three segments as low
commodity prices continued to curtail customer activity across
multiple geographic markets.
2015 Summary
"In 2015, we successfully accomplished several initiatives aimed
at navigating this difficult operating environment. We lowered our
cost base through headcount reductions and minimized rig-related
costs, maintained our working capital diligence, reduced capital
expenditures and, where possible, sustained utilization and market
share.
"We further strengthened our financial position by reducing our
total debt by $30 million during the
year and enhanced our liquidity and financial flexibility by
increasing our revolver capacity. By efficiently managing our cash
receipts and spending, we ended the year with a cash balance of
$134 million and an undrawn revolver.
Our total liquidity as of December 31,
2015 was approximately $322
million as compared with approximately $178 million at December
31, 2014.
"From an operational perspective, our U.S. rental tools business
outperformed the U.S. rig count as we maintained share and grew our
Gulf of Mexico footprint. While
the U.S. rig count declined 47 percent in 2015, our U.S. rental
tools revenue was 37 percent lower. In addition, we increased gross
margin as a percentage of revenue in our international rental tools
business despite lower revenue as we inserted new management,
consolidated and closed locations, reduced headcount, and improved
the management of our supply chain.
"Going forward, we believe rig utilization and pricing will
continue to come under pressure, especially as the deteriorating
market fundamentals impact our international drilling customers. We
also think the lower U.S. rig count will further impact utilization
and pricing for our rental tools. In response, we will maintain our
focus on managing our cash flows. As part of that strategy, our
2016 capital expenditures are expected to be approximately
$50 million as compared with
$88 million in 2015."
Fourth Quarter Review
Parker Drilling's revenues for
the 2015 fourth quarter, compared with the 2015 third quarter,
decreased 14.2 percent to $148.7
million from $173.4 million,
operating gross margin excluding depreciation and amortization
expense (gross margin) decreased 22.7 percent to $34.3 million from $44.4
million and gross margin as a percentage of revenues was
23.1 percent, compared with 25.6 percent for the prior period.
Drilling Services
For the Company's Drilling Services business, which is comprised
of the U.S. (Lower 48) Drilling and International & Alaska
Drilling segments, revenues declined 15.1 percent to $99.0 million from $116.6
million, gross margin decreased 24.6 percent to $20.5 million from $27.2
million, and gross margin as a percentage of revenues was
20.7 percent, compared with 23.3 percent for the prior period.
U.S. (Lower 48)
Drilling
U.S. (Lower 48) Drilling segment revenues were $3.5 million, a 41.7 percent decrease from 2015
third quarter revenues of $6.0
million. Gross margin was a $2.2
million loss as compared with a 2015 third quarter gross
margin loss of $1.9 million. The
declines in revenues and margin were primarily the result of lower
utilization, partially offset by lower costs.
International & Alaska
Drilling
International & Alaska Drilling segment revenues were
$95.5 million, a 13.7 percent
decrease from 2015 third quarter revenues of $110.7 million. Gross margin was $22.6 million, a 22.3 percent decrease from 2015
third quarter gross margin of $29.1
million. Gross margin as a percentage of revenues was 23.7
percent as compared with 26.3 percent in the 2015 third quarter.
The decrease in revenues is primarily attributable to lower
Latin America rig utilization and
project services activities, partially offset by lower operating
costs.
Rental Tools Services
Rental Tools segment revenues were $49.8
million, a 12.3 percent decrease from 2015 third quarter
revenues of $56.8 million. Gross
margin was $13.8 million, a 19.8
percent decrease from 2015 third quarter gross margin of
$17.2 million. Gross margin as a
percentage of revenues was 27.7 percent as compared with 30.3
percent in the 2015 third quarter. Reduced revenues and gross
margin were primarily due to the continued decline in U.S. land
drilling activity, as well as lower activity in certain
international markets.
General and Administrative expense decreased to $6.9 million for the 2015 fourth quarter, from
$8.9 million for the 2015 third
quarter.
The Company's effective tax rate in the fourth quarter was 7%,
primarily due to discrete items as well as receiving no tax benefit
from certain charges incurred during the quarter.
Capital expenditures in the fourth quarter were $15.7 million, and were $88.2 million for the year.
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 18, 2016, to review reported
results. The call will be available by telephone at (888)
510-1785, access code 2054769. 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 18, 2016 through
February 25, 2016 at (888) 203-1112,
access code 2054769#.
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 provides drilling
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-owned and customer-owned equipment. The Company's
Rental Tools Services 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)
|
|
|
|
|
|
December 31,
2015
|
|
December 31,
2014
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
CURRENT
ASSETS
|
|
|
|
Cash and Cash
Equivalents
|
$
|
134,294
|
|
|
$
|
108,456
|
|
Accounts and Notes
Receivable, Net
|
175,105
|
|
|
270,952
|
|
Rig Materials and
Supplies
|
34,937
|
|
|
47,943
|
|
Deferred
Costs
|
1,367
|
|
|
5,673
|
|
Other Current
Assets
|
21,038
|
|
|
29,279
|
|
TOTAL CURRENT
ASSETS
|
366,741
|
|
|
462,303
|
|
|
|
|
|
PROPERTY, PLANT AND
EQUIPMENT, NET
|
805,841
|
|
|
895,940
|
|
|
|
|
|
OTHER
ASSETS
|
|
|
|
Deferred Income
Taxes
|
139,282
|
|
|
130,165
|
|
Other
Assets
|
65,040
|
|
|
32,251
|
|
TOTAL OTHER
ASSETS
|
204,322
|
|
|
162,416
|
|
|
|
|
|
TOTAL
ASSETS
|
$
|
1,376,904
|
|
|
$
|
1,520,659
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
Current Portion of
Long-Term Debt
|
$
|
—
|
|
|
$
|
10,000
|
|
Accounts Payable and
Accrued Liabilities
|
136,121
|
|
|
168,665
|
|
TOTAL CURRENT
LIABILITIES
|
136,121
|
|
|
178,665
|
|
|
|
|
|
LONG-TERM
DEBT
|
585,000
|
|
|
605,000
|
|
|
|
|
|
LONG-TERM DEFERRED
TAX LIABILITY
|
68,654
|
|
|
52,115
|
|
|
|
|
|
OTHER LONG-TERM
LIABILITIES
|
18,617
|
|
|
18,665
|
|
|
|
|
|
TOTAL CONTROLLING
INTEREST IN STOCKHOLDERS' EQUITY
|
568,512
|
|
|
662,431
|
|
Noncontrolling
interest
|
—
|
|
|
3,783
|
|
TOTAL
EQUITY
|
568,512
|
|
|
666,214
|
|
|
|
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
$
|
1,376,904
|
|
|
$
|
1,520,659
|
|
|
|
|
|
|
|
|
|
Current
Ratio
|
2.69
|
|
|
2.59
|
|
|
|
|
|
Total Debt as a
Percent of Capitalization
|
51
|
%
|
|
48
|
%
|
PARKER DRILLING
COMPANY
|
Consolidated
Statement Of Operations
|
(Dollars in
Thousands, Except Per Share Data)
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Three Months Ended
December 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
|
|
|
|
|
REVENUES
|
$
|
148,748
|
|
|
$
|
243,213
|
|
|
$
|
173,418
|
|
|
|
|
|
|
|
EXPENSES:
|
|
|
|
|
|
Operating
Expenses
|
114,488
|
|
|
167,990
|
|
|
128,963
|
|
Depreciation and
Amortization
|
37,720
|
|
|
38,455
|
|
|
39,584
|
|
|
152,208
|
|
|
206,445
|
|
|
168,547
|
|
TOTAL OPERATING GROSS
MARGIN
|
(3,460)
|
|
|
36,768
|
|
|
4,871
|
|
|
|
|
|
|
|
General and
Administrative Expense
|
(6,947)
|
|
|
(9,675)
|
|
|
(8,895)
|
|
Provision for
Reduction in Carrying Value of Certain Assets
|
(9,268)
|
|
|
—
|
|
|
(906)
|
|
Gain (Loss) on
Disposition of Assets, Net
|
(1,043)
|
|
|
621
|
|
|
383
|
|
|
|
|
|
|
|
TOTAL OPERATING
INCOME (LOSS)
|
(20,718)
|
|
|
27,714
|
|
|
(4,547)
|
|
|
|
|
|
|
|
OTHER INCOME AND
(EXPENSE):
|
|
|
|
|
|
Interest
Expense
|
(11,388)
|
|
|
(10,779)
|
|
|
(11,293)
|
|
Interest
Income
|
60
|
|
|
39
|
|
|
7
|
|
Other
|
(6,119)
|
|
|
1,148
|
|
|
(719)
|
|
TOTAL OTHER
EXPENSE
|
(17,447)
|
|
|
(9,592)
|
|
|
(12,005)
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
(38,165)
|
|
|
18,122
|
|
|
(16,552)
|
|
|
|
|
|
|
|
INCOME TAX EXPENSE
(BENEFIT)
|
(2,519)
|
|
|
9,983
|
|
|
31,930
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
(35,646)
|
|
|
8,139
|
|
|
(48,482)
|
|
|
|
|
|
|
|
Less: net income
attributable to noncontrolling interest
|
—
|
|
|
386
|
|
|
138
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO CONTROLLING INTEREST
|
$
|
(35,646)
|
|
|
$
|
7,753
|
|
|
$
|
(48,620)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER
SHARE - BASIC
|
$
|
(0.29)
|
|
|
$
|
0.06
|
|
|
$
|
(0.40)
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER
SHARE - DILUTED
|
$
|
(0.29)
|
|
|
$
|
0.06
|
|
|
$
|
(0.40)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NUMBER OF COMMON
SHARES USED IN COMPUTING EARNINGS PER SHARE:
|
|
|
|
|
|
Basic
|
122,951,598
|
|
|
121,755,421
|
|
|
122,933,518
|
|
Diluted
|
122,951,598
|
|
|
123,295,412
|
|
|
122,933,518
|
|
PARKER DRILLING
COMPANY
|
Consolidated
Statement Of Operations
|
(Dollars in
Thousands, Except Per Share Data)
|
(Unaudited)
|
|
|
|
|
|
|
|
Year Ended December
31,
|
|
2015
|
|
2014
|
|
2013
|
|
|
|
|
|
|
REVENUES
|
$
|
712,183
|
|
|
$
|
968,684
|
|
|
$
|
874,172
|
|
|
|
|
|
|
|
EXPENSES:
|
|
|
|
|
|
Operating
Expenses
|
526,290
|
|
|
669,381
|
|
|
571,672
|
|
Depreciation and
Amortization
|
156,194
|
|
|
145,121
|
|
|
134,053
|
|
|
682,484
|
|
|
814,502
|
|
|
705,725
|
|
TOTAL OPERATING GROSS
MARGIN
|
29,699
|
|
|
154,182
|
|
|
168,447
|
|
|
|
|
|
|
|
General and
Administrative Expense
|
(36,190)
|
|
|
(35,016)
|
|
|
(68,025)
|
|
Provision for
Reduction in Carrying Value of Certain Assets
|
(12,490)
|
|
|
—
|
|
|
(2,544)
|
|
Gain on Disposition
of Assets, Net
|
1,643
|
|
|
1,054
|
|
|
3,994
|
|
|
|
|
|
|
|
TOTAL OPERATING
INCOME (LOSS)
|
(17,338)
|
|
|
120,220
|
|
|
101,872
|
|
|
|
|
|
|
|
OTHER INCOME AND
(EXPENSE):
|
|
|
|
|
|
Interest Expense
|
(45,155)
|
|
|
(44,265)
|
|
|
(47,820)
|
|
Interest Income
|
269
|
|
|
195
|
|
|
2,450
|
|
Loss on extinguishment of
debt
|
—
|
|
|
(30,152)
|
|
|
(5,218)
|
|
Other
|
(9,747)
|
|
|
2,539
|
|
|
1,503
|
|
TOTAL OTHER
EXPENSE
|
(54,633)
|
|
|
(71,683)
|
|
|
(49,085)
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
(71,971)
|
|
|
48,537
|
|
|
52,787
|
|
|
|
|
|
|
|
INCOME TAX
EXPENSE
|
22,313
|
|
|
24,076
|
|
|
25,608
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
(94,284)
|
|
|
24,461
|
|
|
27,179
|
|
|
|
|
|
|
|
Less: net income
attributable to noncontrolling interest
|
789
|
|
|
1,010
|
|
|
164
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO CONTROLLING INTEREST
|
$
|
(95,073)
|
|
|
$
|
23,451
|
|
|
$
|
27,015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER
SHARE - BASIC
|
$
|
(0.78)
|
|
|
$
|
0.19
|
|
|
$
|
0.23
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER
SHARE - DILUTED
|
$
|
(0.78)
|
|
|
$
|
0.19
|
|
|
$
|
0.22
|
|
|
|
|
|
|
|
NUMBER OF COMMON SHARES USED IN COMPUTING EARNINGS
PER SHARE:
|
|
|
|
|
|
Basic
|
122,562,187
|
|
|
121,186,464
|
|
|
119,284,468
|
|
Diluted
|
122,562,187
|
|
|
123,076,648
|
|
|
121,224,550
|
|
PARKER DRILLING
COMPANY
|
Selected Financial
Data
|
(Dollars in
Thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
December 31,
|
|
|
|
December
31,
|
|
September
30,
|
|
2015
|
|
2014
|
|
2013
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
|
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling
Services:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. (Lower 48)
Drilling
|
|
$
|
3,451
|
|
|
$
|
32,124
|
|
|
$
|
5,961
|
|
|
$
|
30,358
|
|
|
$
|
158,405
|
|
|
$
|
153,624
|
|
|
International &
Alaska Drilling
|
|
95,546
|
|
|
118,711
|
|
|
110,661
|
|
|
435,096
|
|
|
462,513
|
|
|
410,507
|
|
|
Total Drilling
Services:
|
|
98,997
|
|
|
150,835
|
|
|
116,622
|
|
|
465,454
|
|
|
620,918
|
|
|
564,131
|
|
|
Rental
Tools
|
|
49,751
|
|
|
92,378
|
|
|
56,796
|
|
|
246,729
|
|
|
347,766
|
|
|
310,041
|
|
|
Total
Revenues
|
|
$
|
148,748
|
|
|
$
|
243,213
|
|
|
$
|
173,418
|
|
|
$
|
712,183
|
|
|
$
|
968,684
|
|
|
$
|
874,172
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling
Services:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. (Lower 48)
Drilling
|
|
$
|
5,616
|
|
|
$
|
21,369
|
|
|
$
|
7,820
|
|
|
$
|
36,247
|
|
|
$
|
90,314
|
|
|
$
|
84,209
|
|
|
International &
Alaska Drilling
|
|
72,902
|
|
|
93,564
|
|
|
81,586
|
|
|
325,346
|
|
|
368,424
|
|
|
324,439
|
|
|
Total Drilling
Services:
|
|
78,518
|
|
|
114,933
|
|
|
89,406
|
|
|
361,593
|
|
|
458,738
|
|
|
408,648
|
|
|
Rental
Tools
|
|
35,970
|
|
|
53,057
|
|
|
39,557
|
|
|
164,697
|
|
|
210,643
|
|
|
163,024
|
|
|
Total
Operating Expenses
|
|
$
|
114,488
|
|
|
$
|
167,990
|
|
|
$
|
128,963
|
|
|
$
|
526,290
|
|
|
$
|
669,381
|
|
|
$
|
571,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING GROSS
MARGIN:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling
Services:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. (Lower 48)
Drilling
|
|
$
|
(2,165)
|
|
|
$
|
10,755
|
|
|
$
|
(1,859)
|
|
|
$
|
(5,889)
|
|
|
$
|
68,091
|
|
|
$
|
69,415
|
|
|
International &
Alaska Drilling
|
|
22,644
|
|
|
25,147
|
|
|
29,075
|
|
|
109,750
|
|
|
94,089
|
|
|
86,068
|
|
|
Total Drilling
Services:
|
|
20,479
|
|
|
35,902
|
|
|
27,216
|
|
|
103,861
|
|
|
162,180
|
|
|
155,483
|
|
|
Rental
Tools
|
|
13,781
|
|
|
39,321
|
|
|
17,239
|
|
|
82,032
|
|
|
137,123
|
|
|
147,017
|
|
|
Depreciation and
Amortization
|
|
(37,720)
|
|
|
(38,455)
|
|
|
(39,584)
|
|
|
(156,194)
|
|
|
(145,121)
|
|
|
(134,053)
|
|
|
Total
Operating Gross Margin
|
|
$
|
(3,460)
|
|
|
$
|
36,768
|
|
|
$
|
4,871
|
|
|
$
|
29,699
|
|
|
$
|
154,182
|
|
|
$
|
168,447
|
|
PARKER DRILLING
COMPANY
|
Adjusted
EBITDA
|
(Dollars in
Thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
December 31,
2015
|
|
September 30,
2015
|
|
June 30,
2015
|
|
March 31,
2015
|
|
December 31,
2014
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
Attributable to Controlling Interest
|
|
$
|
(35,646)
|
|
|
$
|
(48,620)
|
|
|
$
|
(14,029)
|
|
|
$
|
3,222
|
|
|
$
|
7,753
|
|
Interest
Expense
|
|
11,388
|
|
|
11,293
|
|
|
11,396
|
|
|
11,078
|
|
|
10,779
|
|
Income Tax (Benefit)
Expense
|
|
(2,519)
|
|
|
31,930
|
|
|
(6,916)
|
|
|
(182)
|
|
|
9,983
|
|
Depreciation and
Amortization
|
|
37,720
|
|
|
39,584
|
|
|
38,351
|
|
|
40,539
|
|
|
38,455
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
10,943
|
|
|
34,187
|
|
|
28,802
|
|
|
54,657
|
|
|
66,970
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Other Income and
Expense
|
|
6,059
|
|
|
712
|
|
|
1,510
|
|
|
1,197
|
|
|
(1,187)
|
|
(Gain) Loss on
Disposition of Assets, Net
|
|
1,043
|
|
|
(383)
|
|
|
138
|
|
|
(2,441)
|
|
|
(621)
|
|
Provision for
Reduction in Carrying Value of Certain Assets
|
|
9,268
|
|
|
906
|
|
|
2,316
|
|
|
—
|
|
|
—
|
|
Special items
(2)
|
|
1,265
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1)
|
|
$
|
28,578
|
|
|
$
|
35,422
|
|
|
$
|
32,766
|
|
|
$
|
53,413
|
|
|
$
|
65,162
|
|
|
|
(1)
|
We believe Adjusted
EBITDA is an important measure of operating performance because it
allows management, investors and others to evaluate and compare our
core operating results from period to period by removing the impact
of our capital structure (interest expense from our outstanding
debt), asset base (depreciation and amortization), remeasurement of
foreign currency transactions, tax consequences, impairment, and
other special items. Special items include items impacting
operating expenses that management believes detract from an
understanding of normal operating performance. Management uses
Adjusted EBITDA as a supplemental measure to review current period
operating performance and period to period comparisons. Our
Adjusted EBITDA may not be comparable to a similarly titled measure
of another company because other entities may not calculate EBITDA
in the same manner. EBITDA and Adjusted EBITDA are not measures of
financial performance under U.S. Generally Accepted Accounting
Principles (GAAP), and should not be considered in isolation or as
an alternative to operating income or loss, net income or loss,
cash flows provided by or used in operating, investing and
financing activities, or other income or cash flow statement data
prepared in accordance with GAAP.
|
|
|
(2)
|
For the three months
ended December 31, 2015, special items include a $1.3 million
write-off of inventory associated with our decision to no longer
provide drilling services in Colombia.
|
PARKER DRILLING
COMPANY
|
Reconciliation of
Adjusted Earnings Per Share
|
(Dollars in
Thousands, Except Per Share Data)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
December
31,
|
|
September
30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
|
|
|
|
|
|
|
Net income
attributable to controlling interest
|
|
$
|
(35,646)
|
|
|
$
|
7,753
|
|
|
$
|
(48,620)
|
|
Earnings per
diluted share
|
|
$
|
(0.29)
|
|
|
$
|
0.06
|
|
|
$
|
(0.40)
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Sale of investment in
joint venture
|
|
$
|
4,799
|
|
|
—
|
|
|
—
|
|
|
Provision for
reduction in carrying value of certain assets
|
|
9,268
|
|
|
—
|
|
|
—
|
|
|
Write-off
inventory
|
|
1,265
|
|
|
—
|
|
|
—
|
|
|
Valuation
allowance
|
|
—
|
|
|
—
|
|
|
36,632
|
|
|
Total
adjustments
|
|
15,332
|
|
|
—
|
|
|
36,632
|
|
|
Tax effect of
adjustments
|
|
(3,010)
|
|
|
—
|
|
|
—
|
|
|
Net
adjustments
|
|
12,322
|
|
|
—
|
|
|
36,632
|
|
|
|
|
|
|
|
|
|
Adjusted net
income attributable to controlling
interest(1)
|
|
$
|
(23,324)
|
|
|
$
|
7,753
|
|
|
$
|
(11,988)
|
|
Adjusted
earnings per diluted share(1)
|
|
$
|
(0.19)
|
|
|
$
|
0.06
|
|
|
$
|
(0.10)
|
|
|
|
(1)
|
We believe Adjusted
net income (loss) attributable to controlling interest and Adjusted
earnings per diluted share are useful financial measures for
investors to assess and understand operating performance for period
to period comparisons. Management views the adjustments to net
income attributable to controlling interest and earnings per
diluted share to be items outside of the Company's normal operating
results. Adjusted net income (loss) attributable to controlling
interest and Adjusted earnings per diluted share are not measures
of financial performance under GAAP, and should not be considered
in isolation or as an alternative to net income (loss) or earnings
per diluted share.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/parker-drilling-reports-2015-fourth-quarter-results-300221968.html
SOURCE Parker Drilling Company