SAN ANTONIO, Feb. 16 /PRNewswire-FirstCall/ -- Pioneer Drilling
Company, Inc. (NYSE Amex: PDC) today reported financial and
operating results for the three and twelve months ended December
31, 2009. Some of the highlights during the fourth quarter include:
-- Drilling rig utilization increased to 41% from 35% in the prior
quarter -- Three more drilling rigs were contracted to work in
Colombia, bringing the total to eight rigs -- Expanded presence in
shale plays in both the Drilling Services and Production Services
divisions -- Capital expenditures budget of $80 million approved
for 2010 Fourth Quarter 2009 Results Net loss for the fourth
quarter was $8.4 million, or $0.16 per diluted share, compared with
a net loss for the third quarter of 2009 ("the prior quarter") of
$9.2 million, or $0.18 per diluted share. The net loss for the
fourth quarter of 2009 included the positive earnings impact of a
$3.5 million tax benefit from the reversal of a valuation allowance
on deferred tax assets associated with foreign net operating losses
that we expect to apply against future taxable income. Net loss
adjusted to exclude that tax benefit was $11.9 million, or $0.23
per diluted share for the fourth quarter of 2009(1). Net loss for
the fourth quarter of 2008 ("the year-earlier quarter") was $117.9
million, or $2.37 per diluted share. The fourth quarter 2008 net
loss included a $118.6 million goodwill impairment charge and a
$52.8 million intangible asset impairment charge. Revenues for the
latest quarter were $81.2 million, compared with $74.4 million for
the prior quarter and $170.7 million for the year-earlier quarter.
The increase in fourth quarter revenue compared to the prior
quarter was primarily due to an increase in Drilling Services
revenues as a result of higher rig utilization. EBITDA(2) for the
fourth quarter was $14.1 million, compared to $15.2 million for the
prior quarter and $60.4 million for the year-earlier quarter. Full
Year 2009 Results Net loss for the twelve months ended December 31,
2009, was $23.2 million, or $0.46 per share, compared with a net
loss of $62.7 million, or $1.26 per diluted share for the twelve
months ended December 31, 2008. The net loss for 2008 included a
$118.6 million goodwill impairment charge and a $52.8 million
intangible asset impairment charge. Revenues for 2009 were $325.5
million, compared with $610.9 million for the same period last
year. EBITDA(2) for 2009 was $74.9 million, compared to $214.8
million for 2008. Operating Results Revenues for the Drilling
Services Division were $54.6 million for the fourth quarter, a 14%
increase from the prior quarter. During the fourth quarter, the
utilization rate for our drilling rig fleet averaged 41%, up from
35% in the prior quarter, but down from 87% utilization in the
year-earlier quarter. Average drilling revenues per day decreased
4% during the fourth quarter primarily due to the expiration of two
long-term contracts that were earning relatively high daywork rates
when compared to current rates. Average operating costs were
$14,692 per day for the fourth quarter, a 6% decrease when compared
to the prior quarter. Drilling Services margin(3) was flat at
$5,629 per day in the fourth quarter, versus $5,623 per day in the
prior quarter. Revenues for the Production Services Division
increased modestly to $26.6 million in the fourth quarter from
$26.3 million in the prior quarter. Production Services margin(3)
as a percentage of revenue decreased to 33% in the fourth quarter
from 37% in the prior quarter. Currently, 68 of Pioneer's 74
workover rigs have crews assigned and are operating or being
actively marketed, while the remaining six workover rigs are idle
with no crews assigned. "As 2010 gets under way, we are continuing
to see an increase in demand for our equipment, driven by the
growing activity in the U.S. shale plays and in Colombia," said Wm.
Stacy Locke, President and CEO of Pioneer Drilling. "Our Drilling
Services Division now has five rigs working in the Marcellus Shale,
five operating in the Bakken Shale and five additional rigs
operating in various other shale plays. While we averaged 41%
utilization in the fourth quarter, demand has improved, and the
utilization rate in our Drilling Services Division is currently
56%. "We currently have seven rigs operating under drilling
contracts in Colombia, of which, five rigs are drilling and two
rigs have moved to their initial well site locations and are
expected to begin drilling in late February. An eighth drilling rig
is expected to begin drilling operations in Colombia in April. Six
of these drilling rigs assigned to Colombia have term contracts
that expire in December 2012, and the remaining two rigs have term
contracts that expire in September 2010. As a result of the new
contracts in Colombia as well as new contracts in the U.S., we have
increased the number of rigs operating under term contracts from
four rigs at the end of the 2009 to 15 rigs, or 21% of our fleet,
currently. "In our Production Services Division, we are continuing
to expand well servicing operations in the shale plays. Today, we
have well services rigs operating in the Bakken Shale, Fayetteville
Shale, Haynesville Shale, and we have secured a yard to service the
Eagle Ford Shale. Other regions such as South Louisiana and the
Black Warrior Basin in Mississippi are also showing signs of
strength. Like our Drilling Services Division, demand was soft at
the beginning of 2010, but has gradually improved over the last
several weeks. Utilization for workover rigs has grown from an
average of 53% in the fourth quarter to about 60% today. Likewise,
our wireline business is improving and we are now positioned for
work in the Marcellus Shale, Haynesville Shale and South Louisiana
where we will provide both onshore and offshore wireline services,"
Locke said. "In November, we raised $24 million in net proceeds
from an equity offering in order to provide additional financial
flexibility and position us to market our equipment to maximize our
revenue. In 2010, we intend to continue to expand our operations in
the most active basins and make selective upgrades to our equipment
as needed by our customer base." Pioneer's working capital was
$90.3 million at December 31, 2009, up from $64.4 million at
December 31, 2008. Income taxes receivable increased $36.1 million
as of December 31, 2009 when compared to December 31, 2008
primarily due to net operating loss carry-backs that we expect will
result in income tax refunds in the second quarter of 2010. Our
cash and cash equivalents were $40.4 million at the end of the
fourth quarter, up from $26.8 million at December 31, 2008. The
year-over-year increase in cash and cash equivalents was primarily
due to $123.3 million of cash provided by operating activities and
$24.0 million in net proceeds from our equity offering in November
2009. The increase in cash and cash equivalents was partially
offset by our use of $114.7 million for property and equipment
expenditures, debt payments of $17.3 million and debt costs of $2.6
million incurred to amend our senior secured revolving credit
facility. Currently, $257.5 million is outstanding under our senior
secured revolving credit facility, of which, $1.9 million is due in
the first quarter of 2010 and the remaining $255.6 million is due
at maturity on August 31, 2012. There are no limitations on our
ability to borrow funds under our senior secured revolving credit
facility other than maintaining compliance with the applicable
covenants. Conference Call Pioneer's management team will hold a
conference call today at 11:00 a.m. Eastern Time (10:00 a.m.
Central Time), to discuss these results. To participate in the
call, dial 480-629-9819 at least 10 minutes early and ask for the
Pioneer Drilling conference call. A replay will be available
approximately two hours after the call ends and will be accessible
until February 23rd. To access the replay, dial (303) 590-3030 and
enter the pass code 4206132#. The conference call will also be
available on the Internet at Pioneer's Web site at
http://www.pioneerdrlg.com/. To listen to the live call, visit
Pioneer's Web site at least 10 minutes early to register and
download any necessary audio software. An archive will be available
shortly after the call. For more information, please contact Donna
Washburn at DRG&E at (713) 529-6600 or e-mail . About Pioneer
Pioneer Drilling Company provides contract land drilling services
to independent and major oil and gas operators in Texas, Louisiana,
Oklahoma, Kansas, the Rocky Mountain and Appalachian regions and
internationally in Colombia through its Pioneer Drilling Services
Division. The Company also provides workover rig, wireline and
fishing and rental services to producers in the U.S. Gulf Coast,
Mid-Continent, Rocky Mountain and Appalachian regions through its
Pioneer Production Services Division. Its fleet consists of 71 land
drilling rigs that drill at depths ranging from 6,000 to 25,000
feet, 74 workover rigs (69 550-horsepower rigs, 4 600-horsepower
rigs and 1 400-horsepower rig), 65 wireline units, and fishing and
rental tools. Cautionary Statement Regarding Forward-Looking
Statements, Non-GAAP Financial Measures and Reconciliations
Statements we make in this news release that express a belief,
expectation or intention, as well as those that are not historical
fact, are forward-looking statements that are subject to risks,
uncertainties and assumptions. Our actual results, performance or
achievements, or industry results, could differ materially from
those we express in this news release as a result of a variety of
factors, including general economic and business conditions and
industry trends; levels and volatility of oil and gas prices;
decisions about onshore exploration and development projects to be
made by oil and gas producing companies; risks associated with
economic cycles and their impact on capital markets and liquidity;
the continued demand for the drilling services or production
services in the geographic areas where we operate; the highly
competitive nature of our business; our future financial
performance, including availability, terms and deployment of
capital; the supply of marketable drilling rigs, workover rigs and
wireline units within the industry; the continued availability of
drilling rig, workover rig and wireline unit components; the
continued availability of qualified personnel; the success or
failure of our acquisition strategy, including our ability to
finance acquisitions and manage growth; changes in, or our failure
or inability to comply with, governmental regulations, including
those relating to the environment. We have discussed many of these
factors in more detail in our annual report on Form 10-K for the
year ended December 31, 2009. These factors are not necessarily all
the important factors that could affect us. Unpredictable or
unknown factors we have not discussed in this news release, or in
our annual report on Form 10-K could also have material adverse
effects on actual results of matters that are the subject of our
forward-looking statements. All forward-looking statements speak
only as the date on which they are made and we undertake no
obligation to publicly update or revise any forward-looking
statements whether, as a result of new information, future events
or otherwise. We advise our shareholders that they should (1) be
aware that important factors not referred to above could affect the
accuracy of our forward-looking statements and (2) use caution and
common sense when considering our forward-looking statements. This
news release contains non-GAAP financial measures as defined by SEC
Regulation G. A reconciliation of each such measure to its most
directly comparable GAAP financial measure, together with an
explanation of why management believes that these non-GAAP
financial measures provide useful information to investors, is
provided in the following tables. (1) A reconciliation of net loss
adjusted to exclude the tax benefit of the release of the valuation
allowance for deferred tax assets to net loss as reported is
included in the table to this press release. We believe that net
loss adjusted to exclude the tax benefit of the release of the
valuation allowance for deferred tax assets is a useful measure for
evaluating financial performance, although it is not a measure of
financial performance under GAAP. Net loss adjusted to exclude the
tax benefit of the release of the valuation allowance for deferred
tax assets as presented may not be comparable to other similarly
titled measures reported by other companies. (2) We define EBITDA
as earnings (loss) before interest income (expense), taxes,
depreciation, amortization and impairments. Although not prescribed
under GAAP, we believe the presentation of EBITDA is relevant and
useful because it helps our investors understand our operating
performance and makes it easier to compare our results with those
of other companies that have different financing, capital or tax
structures. EBITDA should not be considered in isolation from or as
a substitute for net income, as an indication of operating
performance or cash flows from operating activities or as a measure
of liquidity. A reconciliation of net earnings (loss) to EBITDA is
included in the tables to this press release. EBITDA, as we
calculate it, may not be comparable to EBITDA measures reported by
other companies. In addition, EBITDA does not represent funds
available for discretionary use. (3) Drilling Services margin
represents contract drilling revenues less contract drilling
operating costs. Production Services margin represents production
services revenues less production services operating costs. We
believe that Drilling Services margin and Production Services
margin are useful measures for evaluating financial performance,
although they are not measures of financial performance under GAAP.
However, Drilling Services margin and Production Services margin
are common measures of operating performance used by investors,
financial analysts, rating agencies and Pioneer management. A
reconciliation of Drilling Services margin and Production Services
margin to net earnings (loss) is included in the tables to this
press release. Drilling Services margin and Production Services
margin as presented may not be comparable to other similarly titled
measures reported by other companies. Contacts: Lorne E. Phillips,
CFO Pioneer Drilling Company 210-828-7689 Lisa Elliott / Anne
Pearson / DRG&E / 713-529-6600 - Financial Statements and
Operating Information Follow - PIONEER DRILLING COMPANY AND
SUBSIDIARIES Condensed Consolidated Statements of Operations (in
thousands, except per share data) (unaudited) Three months ended
Years ended December 31, September 30, December 31, 2009 2008 2009
2009 2008 ---- ---- ---- ---- ---- Revenues: Drilling services
$54,581 $123,303 $48,084 $219,751 456,890 Production services
26,630 47,392 26,282 105,786 153,994 ------ ------ ------ -------
------- Total revenue 81,211 170,695 74,366 325,537 610,884 ------
------- ------ ------- ------- Costs and Expenses: Drilling
services 39,463 71,731 35,315 147,343 269,846 Production services
17,752 26,226 16,638 68,012 80,097 Depreciation and amortization
27,719 26,221 26,952 106,186 88,145 Selling, general and
administrative 9,608 12,123 8,892 37,478 44,834 Bad debt (recovery)
expense 71 639 (1,409) (1,642) 423 Impairment of goodwill - 118,646
- - 118,646 Impairment of intangible assets - 52,847 - - 52,847 ---
------ --- --- ------ Total costs and expenses 94,613 308,433
86,388 357,377 654,838 ------ ------- ------ ------- ------- Income
(loss) from operations (13,402) (137,738) (12,022) (31,840)
(43,954) ------- -------- ------- ------- ------- Other (expense)
income: Interest expense (3,590) (3,460) (1,839) (9,145) (13,072)
Interest income 35 261 43 217 1,256 Other (251) 471 222 596 (918)
---- --- --- --- ---- Total other expense (3,806) (2,728) (1,574)
(8,332) (12,734) ------ ------ ------ ------ ------- Income (loss)
before income taxes (17,208) (140,466) (13,596) (40,172) (56,688)
Income tax benefit (expense) 8,824 22,562 4,406 16,957 (6,057)
----- ------ ----- ------ ------ Net earnings (loss) $(8,384)
$(117,904) $(9,190) $(23,215) $(62,745) ======= ========= =======
======== ======== Earnings (loss) per common share: Basic $(0.16)
$(2.37) $(0.18) $(0.46) $(1.26) ====== ====== ====== ====== ======
Diluted $(0.16) $(2.37) $(0.18) $(0.46) $(1.26) ====== ======
====== ====== ====== Weighted average number of shares outstanding:
Basic 51,742 49,818 49,845 50,313 49,789 Diluted 51,742 49,818
49,845 50,313 49,789 PIONEER DRILLING COMPANY AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (in thousands) December 31,
2009 December 31, 2008 ----------------- ----------------- ASSETS
(unaudited) (audited) ------ Current assets: Cash and cash
equivalents $40,379 $26,821 Receivables, net of allowance for
doubtful accounts 81,467 99,423 Deferred income taxes 5,560 6,270
Inventory 5,535 3,874 Prepaid expenses and other current assets
6,199 8,902 ----- ----- Total current assets 139,140 145,290 Net
property and equipment 637,022 627,562 Intangible assets, net of
amortization 25,393 29,969 Other long-term assets 21,061 21,658
------ ------ Total assets $822,616 $824,479 ======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------ Current liabilities: Accounts
payable $15,324 $21,830 Current portion of long-term debt 4,041
17,298 Prepaid drilling contracts 408 1,171 Accrued expenses 29,031
40,619 ------ ------ Total current liabilities 48,804 80,918
Long-term debt, less current portion 258,073 262,115 Other long
term liabilities 6,457 6,413 Deferred income taxes 87,834 60,915
------ ------ Total liabilities 401,168 410,361 Total shareholders'
equity 421,448 414,118 ------- ------- Total liabilities and
shareholders' equity $822,616 $824,479 ======== ======== PIONEER
DRILLING COMPANY AND SUBSIDIARIES Condensed Consolidated Statements
of Cash Flows (in thousands) (unaudited) Years ended December 31,
2009 2008 ---- ---- Cash flows from operating activities: Net
earnings (loss) $(23,215) $(62,745) Adjustments to reconcile net
earnings (loss) to net cash provided by operating activities:
Depreciation and amortization 106,186 88,145 Allowance for doubtful
accounts (1,170) 1,591 Gain on dispositions of property and
equipment 56 (805) Stock-based compensation expense 7,216 4,597
Impairment of goodwill and intangible assets - 171,493 Deferred
income taxes 28,400 (2,310) Change in other assets 1,616 265 Change
in non-current liabilities (1,312) (621) Changes in current assets
and liabilities 5,536 (13,219) ----- ------- Net cash provided by
operating activities 123,313 186,391 ------- ------- Cash flows
from investing activities: Acquisition of WEDGE - (313,621)
Acquisition of Competition Wireline - (26,772) Acquisition of other
production services businesses - (9,301) Purchases of property and
equipment (114,712) (147,455) Purchase of auction rate securities -
(15,900) Proceeds from sale of property and equipment 767 4,008
Proceeds from insurance recoveries 36 3,426 --- ----- Net cash used
in investing activities (113,909) (505,615) -------- -------- Cash
flows from financing activities: Debt repayments (17,298) (87,767)
Proceeds from issuance of debt - 359,400 Debt issuance costs
(2,560) (3,319) Proceeds from exercise of options - 784 Proceeds
from sale of common stock, net of offering costs of $454 24,043 -
Purchase of treasury stock (31) - Excess tax benefit effect of
stock option exercises - 244 --- --- Net cash (used in) provided by
financing activities 4,154 269,342 ----- ------- Net increase
(decrease) in cash and cash equivalents 13,558 (49,882) Beginning
cash and cash equivalents 26,821 76,703 ------ ------ Ending cash
and cash equivalents $40,379 $26,821 ======= ======= PIONEER
DRILLING COMPANY AND SUBSIDIARIES Operating Statistics (in
thousands, except average number of drilling rigs, utilization rate
and revenue day information) (unaudited) Three months ended Years
ended December 31, September 30, December 31, 2009 2008 2009 2009
2008 ---- ---- ---- ---- ---- Drilling Services Division: Revenues
$54,581 $123,303 $48,084 $219,751 $456,890 Operating costs 39,463
71,731 35,315 147,343 269,846 ------ ------ ------ ------- -------
Drilling services margin (1) $15,118 $51,572 $12,769 $72,408
$187,044 ======= ======= ======= ======= ======== Average number of
drilling rigs 71.0 68.7 71.0 70.7 67.4 Utilization rate 41% 87% 35%
41% 89% Revenue days 2,686 5,529 2,271 10,491 22,057 Average
revenues per day $20,321 $22,301 $21,173 $20,947 $20,714 Average
operating costs per day 14,692 12,974 15,550 14,045 12,234 ------
------ ------ ------ ------ Drilling services margin per day (2)
$5,629 $9,327 $5,623 $6,902 $8,480 ====== ====== ====== ======
====== Production Services Division: Revenues $26,630 $47,392
$26,282 $105,786 $153,994 Operating costs 17,752 26,226 16,638
68,012 80,097 ------ ------ ------ ------ ------ Production
services margin (1) $8,878 $21,166 $9,644 $37,774 $73,897 ======
======= ====== ======= ======= Combined: Revenues $81,211 $170,695
$74,366 $325,537 $610,884 Operating Costs 57,215 97,957 51,953
215,355 349,943 ------ ------ ------ ------- ------- Combined
margin $23,996 $72,738 $22,413 $110,182 $260,941 ======= =======
======= ======== ======== EBITDA (3) $14,066 $60,447 $15,152
$74,942 $214,766 ======= ======= ======= ======= ======== (1)
Drilling services margin represents contract drilling revenues less
contract drilling operating costs. Production services margin
represents production services revenue less production services
operating costs. Pioneer believes that Drilling services margin and
Production services margin are useful measures for evaluating
financial performance, although they are not measures of financial
performance under generally accepted accounting principles.
However, Drilling services margin and Production services margin
are common measures of operating performance used by investors,
financial analysts, rating agencies and Pioneer's management. A
reconciliation of Drilling services margin and Production services
margin to net earnings (loss) is included in the table below.
Drilling services margin and production services margin as
presented may not be comparable to other similarly titled measures
reported by other companies. (2) Drilling services margin per
revenue day represents the Drilling Services Division's average
revenue per revenue day less average operating costs per revenue
day. (3) We define EBITDA as earnings (loss) before interest income
(expense), taxes, depreciation, amortization and impairments.
Although not prescribed under GAAP, we believe the presentation of
EBITDA is relevant and useful because it helps our investors
understand our operating performance and makes it easier to compare
our results with those of other companies that have different
financing, capital or tax structures. EBITDA should not be
considered in isolation from or as a substitute for net earnings
(loss) as an indication of operating performance or cash flows from
operating activities or as a measure of liquidity. A reconciliation
of net earnings (loss) to EBITDA is included in the table below.
EBITDA, as we calculate it, may not be comparable to EBITDA
measures reported by other companies. In addition, EBITDA does not
represent funds available for discretionary use. PIONEER DRILLING
COMPANY AND SUBSIDIARIES Capital Expenditures (in thousands)
(unaudited) Budget ------ Year Three months ended Years ended
Ending December 31, September 30, December 31, December 31, 2009
2008 2009 2009 2008 2010 ---- ---- ---- ---- ---- ---- Capital
expenditures: Drilling Services Division: Routine rigs $2,911
$5,209 $1,026 $9,621 $16,766 $13,000 Discretionary 36,342 13,105
14,932 62,791 61,034 44,000 Tubulars 1,507 44 92 3,569 1,094 4,000
New-builds and acquisitions - 16,916 - - 30,281 - --- ------ ---
--- ------ --- Total Drilling Services Division capital
expenditures 40,760 35,274 16,050 75,981 109,175 61,000 ------
------ ------ ------ ------- ------ Production Services Division:
Routine 1,295 1,337 1,283 5,314 4,740 5,000 Discretionary 354 146
285 810 1,175 4,000 New-builds and acquisitions 3,583 10,563 729
9,038 33,006 10,000 ----- ------ --- ----- ------ ------ Total
Production Services Division capital expenditures 5,232 12,046
2,297 15,162 38,921 19,000 ----- ------ ----- ------ ------ ------
Actual and budgeted capital expenditures 45,992 47,320 18,347
91,143 148,096 80,000 ------ ------ ------ ------ ------- ------
Budgeted capital expenditures approved in 2009 that will be
incurred in 2010 - - - - - 17,100 Budgeted capital expenditures
approved in 2008 that was incurred in 2009 - - 894 19,310 - - ---
--- --- ------ --- --- $45,992 $47,320 $19,241 $110,453 $148,096
$97,100 ======= ======= ======= ======== ======== ======= PIONEER
DRILLING COMPANY AND SUBSIDIARIES Drilling Rig, Workover Rig and
Wireline Unit Information Rig Type Mechanical Electric Total Rigs
---------- -------- ---------- Drilling Services Division: Drilling
rig horsepower ratings: 550 to 700 HP 6 - 6 750 to 900 HP 14 2 16
1000 HP 18 12 30 1200 to 2000 HP 3 16 19 --- --- --- Total 41 30 71
=== === === Drilling rig depth ratings: Less than 10,000 feet 8 2
10 10,000 to 13,900 feet 30 7 37 14,000 to 25,000 feet 3 21 24 ---
--- --- Total 41 30 71 === === === Production Services Division:
Workover rig horsepower ratings: 400 HP 1 550 HP 69 600 HP 4 ---
Total 74 === Wireline units 65 === PIONEER DRILLING COMPANY AND
SUBSIDIARIES Reconciliation of Combined Drilling Services Margin
and Production Services Margin and EBITDA to Net Earnings (Loss)
(in thousands) (unaudited) Three months ended Years ended December
31, September 30, December 31, 2009 2008 2009 2009 2008 ---- ----
---- ---- ---- Combined margin $23,996 $72,738 $22,413 $110,182
$260,941 Selling, general and administrative (9,608) (12,123)
(8,892) (37,478) (44,834) Bad debt recovery (expense) (71) (639)
1,409 1,642 (423) Other income (expense) (251) 471 222 596 (918)
---- --- --- --- ---- EBITDA 14,066 60,447 15,152 74,942 214,766
Depreciation and amortization (27,719) (26,221) (26,952) (106,186)
(88,145) Impairment of goodwill - (118,646) - - (118,646)
Impairment of intangible assets - (52,847) - - (52,847) Interest
income (expense), net (3,555) (3,199) (1,796) (8,928) (11,816)
Income tax benefit (expense) 8,824 22,562 4,406 16,957 (6,057)
----- ------ ----- ------ ------ Net earnings (loss) $(8,384)
$(117,904) $(9,190) $(23,215) $(62,745) ======= ========= =======
======== ======== PIONEER DRILLING COMPANY AND SUBSIDIARIES
Reconciliation of Net Loss as Reported to Net Loss Adjusted to
Exclude the Tax Benefit of the Release of the Valuation Allowance
on Deferred Tax Assets (in thousands, except per share data) Three
months ended Year ended December 31, 2009 December 31, 2009
----------------- ----------------- Net loss as reported $(8,384)
$(23,215) Less: Tax benefit of the release of the valuation
allowance for deferred tax assets (3,466) (3,466) ------ ------ Net
loss adjusted to exclude the tax benefit of the release of the
valuation allowance on deferred tax assets (4) $(11,850) $(26,681)
======== ======== Basic weighted average number of shares
outstanding, as reported 51,742 50,313 Diluted EPS adjusted to
exclude the tax benefit of the release of the valuation allowance
for deferred tax assets (5) $(0.23) $(0.53) ====== ====== Diluted
EPS as reported (5) $(0.16) $(0.46) ====== ====== (4) We believe
that net loss adjusted to exclude the tax benefit of the release of
the valuation allowance for deferred tax assets is a useful measure
for evaluating financial performance, although it is not a measure
of financial performance under GAAP. A reconciliation of net loss
adjusted to exclude the tax benefit of the release of the valuation
allowance for deferred tax assets to net loss as reported is
included in the table above. This tax benefit is associated with
foreign net operating losses that we expect to apply against future
taxable income. Net loss adjusted to exclude the tax benefit of the
release of the valuation allowance for deferred tax assets as
presented may not be comparable to other similarly titled measures
reported by other companies. (5) The effect of dilutive securities
is not reflected in diluted EPS because the effect of their
inclusion would be antidilutive, or would decrease the reported
loss per share. Therefore, basic EPS is the same as diluted EPS.
DATASOURCE: Pioneer Drilling Company, Inc. CONTACT: Lorne E.
Phillips, CFO of Pioneer Drilling Company, +1-210-828-7689; or Lisa
Elliott, , or Anne Pearson, , both of DRG&E, +1-713-529-6600,
for Pioneer Drilling Company Web Site: http://www.pioneerdrlg.com/
Copyright