Delaware (State or other jurisdiction of incorporation or organization) | 73-0618660 (I.R.S. Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
¨ | Soliciting material pursuant to Rule 14A-12 under the Exchange Act (17 CFR 240.14a-12) | |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Parker Drilling Company | |||||
Date: | August 2, 2016 | By: | /s/ Christopher T. Weber | ||
Christopher T. Weber | |||||
Senior Vice President and Chief Financial Officer | |||||
PARKER DRILLING COMPANY | |||||||
Consolidated Condensed Balance Sheets | |||||||
(Dollars in Thousands) | |||||||
June 30, 2016 | December 31, 2015 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Current Assets | |||||||
Cash and Cash Equivalents | $ | 109,034 | $ | 134,294 | |||
Accounts and Notes Receivable, net | 153,189 | 175,105 | |||||
Rig Materials and Supplies | 32,615 | 34,937 | |||||
Other Current Assets | 26,805 | 22,405 | |||||
Total Current Assets | 321,643 | 366,741 | |||||
Property, Plant and Equipment, net | 747,017 | 805,841 | |||||
Other Assets | |||||||
Deferred Income Taxes | 87,311 | 139,282 | |||||
Other Assets | 56,800 | 54,838 | |||||
Total Other Assets | 144,111 | 194,120 | |||||
Total Assets | $ | 1,212,771 | $ | 1,366,702 | |||
Liabilities and Stockholders’ Equity | |||||||
Current Liabilities | |||||||
Accounts Payable and Accrued Liabilities | $ | 114,868 | $ | 136,121 | |||
Total Current Liabilities | 114,868 | 136,121 | |||||
Long-Term Debt, net of debt issuance costs | 575,548 | 574,798 | |||||
Long-Term Deferred Tax Liability | 76,475 | 68,654 | |||||
Other Long-Term Liabilities | 15,049 | 18,617 | |||||
Total Stockholders’ Equity | 430,831 | 568,512 | |||||
Total Liabilities and Stockholders’ Equity | $ | 1,212,771 | $ | 1,366,702 |
PARKER DRILLING COMPANY | |||||||||||
Consolidated Statement Of Operations | |||||||||||
(Dollars in Thousands, Except Per Share Data) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended March 31, | |||||||||||
Three Months Ended June 30, | |||||||||||
2016 | 2015 | 2016 | |||||||||
Revenues | $ | 105,287 | $ | 185,941 | $ | 130,503 | |||||
Expenses: | |||||||||||
Operating Expenses | 89,195 | 143,569 | 108,117 | ||||||||
Depreciation and Amortization | 36,317 | 38,351 | 35,814 | ||||||||
125,512 | 181,920 | 143,931 | |||||||||
Total Operating Gross Margin | (20,225 | ) | 4,021 | (13,428 | ) | ||||||
General and Administrative Expense | (7,995 | ) | (9,511 | ) | (9,781 | ) | |||||
Provision for Reduction in Carrying Value of Certain Assets | — | (2,316 | ) | — | |||||||
Loss on Disposition of Assets, net | (2 | ) | (138 | ) | (60 | ) | |||||
Total Operating Loss | (28,222 | ) | (7,944 | ) | (23,269 | ) | |||||
Other Income and (Expense) | |||||||||||
Interest Expense | (12,187 | ) | (11,396 | ) | (11,562 | ) | |||||
Interest Income | 32 | 19 | 7 | ||||||||
Other | (358 | ) | (1,529 | ) | 2,485 | ||||||
Total Other Expense | (12,513 | ) | (12,906 | ) | (9,070 | ) | |||||
Loss before Income Taxes | (40,735 | ) | (20,850 | ) | (32,339 | ) | |||||
Income Tax Expense (Benefit) | (913 | ) | (6,916 | ) | 63,496 | ||||||
Net Loss | (39,822 | ) | (13,934 | ) | (95,835 | ) | |||||
Less: Net Income Attributable to Noncontrolling Interest | — | 95 | — | ||||||||
Net Loss Attributable to Controlling Interest | $ | (39,822 | ) | $ | (14,029 | ) | $ | (95,835 | ) | ||
Loss per Share - Basic | |||||||||||
Net Loss | $ | (0.32 | ) | $ | (0.11 | ) | $ | (0.78 | ) | ||
Loss per Share - Diluted | |||||||||||
Net Loss | $ | (0.32 | ) | $ | (0.11 | ) | $ | (0.78 | ) | ||
Number of common shares used in computing earnings per share: | |||||||||||
Basic | 124,101,349 | 122,481,425 | 123,090,238 | ||||||||
Diluted | 124,101,349 | 122,481,425 | 123,090,238 |
PARKER DRILLING COMPANY | |||||||
Consolidated Statement Of Operations | |||||||
(Dollars in Thousands, Except Per Share Data) | |||||||
(Unaudited) | |||||||
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
Revenues | $ | 235,790 | $ | 390,017 | |||
Expenses: | |||||||
Operating Expenses | 197,312 | 282,839 | |||||
Depreciation and Amortization | 72,131 | 78,890 | |||||
269,443 | 361,729 | ||||||
Total Operating Gross Margin | (33,653 | ) | 28,288 | ||||
General and Administrative Expense | (17,776 | ) | (20,348 | ) | |||
Provision for Reduction in Carrying Value of Certain Assets | — | (2,316 | ) | ||||
Gain (Loss) on Disposition of Assets, net | (62 | ) | 2,303 | ||||
Total Operating Income (Loss) | (51,491 | ) | 7,927 | ||||
Other Income and (Expense) | |||||||
Interest Expense | (23,749 | ) | (22,474 | ) | |||
Interest Income | 39 | 202 | |||||
Other | 2,127 | (2,909 | ) | ||||
Total Other Expense | (21,583 | ) | (25,181 | ) | |||
Loss before Income Taxes | (73,074 | ) | (17,254 | ) | |||
Income Tax Expense (Benefit) | 62,583 | (7,098 | ) | ||||
Net Loss | (135,657 | ) | (10,156 | ) | |||
Less: Net Income Attributable to Noncontrolling Interest | — | 651 | |||||
Net Loss Attributable to Controlling Interest | $ | (135,657 | ) | $ | (10,807 | ) | |
Loss per Share - Basic | |||||||
Net Loss | $ | (1.10 | ) | $ | (0.09 | ) | |
Loss per Share - Diluted | |||||||
Net Loss | $ | (1.10 | ) | $ | (0.09 | ) | |
Number of common shares used in computing earnings per share: | |||||||
Basic | 123,595,793 | 122,175,511 | |||||
Diluted | 123,595,793 | 122,175,511 |
PARKER DRILLING COMPANY | |||||||||||||
Selected Financial Data | |||||||||||||
(Dollars in Thousands) | |||||||||||||
(Unaudited) | |||||||||||||
Three Months Ended | |||||||||||||
June 30, | March 31, | ||||||||||||
2016 | 2015 | 2016 | |||||||||||
Revenues: | |||||||||||||
Drilling Services: | |||||||||||||
U.S. (Lower 48) Drilling | $ | 1,065 | $ | 6,848 | $ | 2,085 | |||||||
International & Alaska Drilling | 71,926 | 114,969 | 88,619 | ||||||||||
Total Drilling Services | 72,991 | 121,817 | 90,704 | ||||||||||
Rental Tools | 32,296 | 64,124 | 39,799 | ||||||||||
Total Revenues | $ | 105,287 | $ | 185,941 | $ | 130,503 | |||||||
Operating Expenses: | |||||||||||||
Drilling Services: | |||||||||||||
U.S. (Lower 48) Drilling | $ | 4,967 | $ | 8,829 | $ | 5,422 | |||||||
International & Alaska Drilling | 54,110 | 92,329 | 69,725 | ||||||||||
Total Drilling Services | 59,077 | 101,158 | 75,147 | ||||||||||
Rental Tools | 30,118 | 42,411 | 32,970 | ||||||||||
Total Operating Expenses | $ | 89,195 | $ | 143,569 | $ | 108,117 | |||||||
Operating Gross Margin: | |||||||||||||
Drilling Services: | |||||||||||||
U.S. (Lower 48) Drilling | $ | (3,902 | ) | $ | (1,981 | ) | $ | (3,337 | ) | ||||
International & Alaska Drilling | 17,816 | 22,640 | 18,894 | ||||||||||
Total Drilling Services | 13,914 | 20,659 | 15,557 | ||||||||||
Rental Tools | 2,178 | 21,713 | 6,829 | ||||||||||
Depreciation and Amortization | (36,317 | ) | (38,351 | ) | (35,814 | ) | |||||||
Total Operating Gross Margin | $ | (20,225 | ) | $ | 4,021 | $ | (13,428 | ) |
PARKER DRILLING COMPANY | ||||||||||||||||||||
Adjusted EBITDA (1) | ||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
June 30, 2016 | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | ||||||||||||||||
Net Loss Attributable to Controlling Interest | $ | (39,822 | ) | $ | (95,835 | ) | $ | (35,646 | ) | $ | (48,620 | ) | $ | (14,029 | ) | |||||
Interest Expense | 12,187 | 11,562 | 11,388 | 11,293 | 11,396 | |||||||||||||||
Income Tax (Benefit) Expense | (913 | ) | 63,496 | (2,519 | ) | 31,930 | (6,916 | ) | ||||||||||||
Depreciation and Amortization | 36,317 | 35,814 | 37,720 | 39,584 | 38,351 | |||||||||||||||
EBITDA | 7,769 | 15,037 | 10,943 | 34,187 | 28,802 | |||||||||||||||
Adjustments: | ||||||||||||||||||||
Other Income and Expense | 326 | (2,492 | ) | 6,059 | 712 | 1,510 | ||||||||||||||
(Gain) Loss on Disposition of Assets, net | 2 | 60 | 1,043 | (383 | ) | 138 | ||||||||||||||
Provision for Reduction in Carrying Value of Certain Assets | — | — | 9,268 | 906 | 2,316 | |||||||||||||||
Special items (2) | — | — | 1,265 | — | — | |||||||||||||||
Adjusted EBITDA | $ | 8,097 | $ | 12,605 | $ | 28,578 | $ | 35,422 | $ | 32,766 | ||||||||||
(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 | |||||||||||||
June 30, | March 31, | ||||||||||||
2016 | 2015 | 2016 | |||||||||||
Net Loss Attributable to Controlling Interest | $ | (39,822 | ) | $ | (14,029 | ) | $ | (95,835 | ) | ||||
Loss per Diluted Share | $ | (0.32 | ) | $ | (0.11 | ) | $ | (0.78 | ) | ||||
Adjustments: | |||||||||||||
Provision for Reduction in Carrying Value of Certain Assets | — | 2,316 | — | ||||||||||
Valuation Allowance | — | — | 73,125 | ||||||||||
Total adjustments | — | 2,316 | 73,125 | ||||||||||
Tax effect of adjustments | — | (443 | ) | — | |||||||||
Net adjustments | — | 1,873 | 73,125 | ||||||||||
Adjusted Net Loss Attributable to Controlling Interest (1) | $ | (39,822 | ) | $ | (12,156 | ) | $ | (22,710 | ) | ||||
Adjusted Loss per Diluted Share (1) | $ | (0.32 | ) | $ | (0.10 | ) | $ | (0.18 | ) | ||||
(1) We believe Adjusted Net Loss Attributable to Controlling Interest and Adjusted Loss 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 Loss Attributable to Controlling Interest and Loss per Diluted Share to be items outside of the Company’s normal operating results. Adjusted Net Loss Attributable to Controlling Interest and Adjusted Loss per Diluted Share are not measures of financial performance under GAAP, and should not be considered in isolation or as an alternative to Net Loss or Loss per Diluted Share. |