EX-99.1 3 h05184exv99w1.txt PRESS RELEASE DATED APRIL 28, 2003 Exhibit 99.1 FOR IMMEDIATE RELEASE Investor Contact: David Tucker 281-406-2370 April 28, 2003 Media Contact: Ron Whitmire 281-406-2210 PARKER DRILLING REPORTS FIRST QUARTER RESULTS HOUSTON - For the quarter ended March 31, 2003, Parker Drilling reported revenues of $95.1 million and a net loss of $16.2 million, or $0.17 per share. For the quarter ended March 31, 2002, Parker Drilling reported a net loss before cumulative effect of change in accounting principle of $11.1 million or $0.12 per diluted share on revenues of $106.4 million. Including the cumulative effect of the change in accounting principle, Parker Drilling reported a first quarter 2002 net loss of $84.2 million or $0.91 per share. Effective the first quarter of 2002, the company adopted SFAS No. 142, "Goodwill and Other Intangible Assets" resulting in an impairment of goodwill of $73.1 million or $0.79 per share. Drilling and rental gross margins were $30.1 million for the first quarter of 2003. This compares to drilling and rental gross margins of $37.0 million for the fourth quarter of 2002, and $32.1 million for the first quarter of 2002. The company's international activities continue to be led by its operation in Kazakhstan fueled by the January resumption of the Tengizchevroil drilling program that was suspended during the fourth quarter of 2002. In addition, in early April Parker signed a one-well extension to its contract for Rig 257 operating in the Caspian Sea for a consortium managed by AGIP KCO. Two of the company's three rigs under contract in Nigeria had drilling suspended during the first quarter of 2003 due to conflicts in the area. The company is working with its customers in Nigeria to resume drilling. In addition, the company's management contract in Kuwait was interrupted for 30 days in March and April because of the conflict in neighboring Iraq. The company is in the process of resuming its Kuwait operation. While the suspensions in Nigeria and Kuwait resulted in a reduction in revenues, there was no material reduction in gross margin. Utilization of the company's international land rigs currently is 24 percent. Average utilization was 23 percent in the first quarter of 2003 compared to average utilization of 31 percent for the fourth quarter of 2002. Utilization of Parker Drilling's Gulf of Mexico rigs is currently 52 percent. Average utilization was 52 percent in the first quarter of 2003 compared to an average utilization of 58 percent in the fourth quarter of 2002. -MORE- PAGE 2 Capital expenditures for the three months ended March 31, 2003, were $6.9 million. Total debt was $588.3 million at March 31, 2003, and the company's cash balance was $84.4 million at the end of the first quarter. A slower than anticipated market reaction to commodity prices and unstable worldwide events have resulted in a lower than expected number of rigs working and continued pressure on rates. Therefore, Parker management is reducing its guidance for 2003 to a projected loss in diluted earnings per share in the $0.26 to $0.30 range excluding any impact resulting from asset sales. As previously disclosed, the company is proceeding with its plan to sell assets by mid-year. The company continues to target a $200 million debt reduction from proceeds raised in the process. While there are no assurances that the sale of such assets can be consummated on terms that are acceptable to the company, the company continues to believe it will achieve its target and do so during the second quarter. Parker Drilling has scheduled a conference call at 10 a.m. CDT April 28, 2003, to discuss first quarter 2003 results. Those interested in participating in the call may dial in at (303) 262-2130. The conference call replay can be accessed from noon CDT April 28, 2003, until 6 p.m. CDT May 5, 2003, by dialing (303) 590-3000 and using the access code 533895#. Alternatively, the call can be accessed live through the Investor Relations section of the Parker Web site at http://www.parkerdrilling.com. The archived call will be available on the Web for 90 days, and the earnings release will be available for no less than 12 months. This release contains certain statements that may be deemed to be "forward-looking statements" within the meaning of the Securities Acts. All statements, 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, the outlook for rig utilization and dayrates, general industry conditions including bidding activity, future operating results of the company's rigs and rental tool operations, capital expenditures, expansion and growth opportunities, asset sales and other such matters, are forward-looking statements. Although the company believes that its expectations stated in this release are based on reasonable assumptions, actual results may differ from those expressed or implied in the forward-looking statements. For a more detailed discussion of risk factors, please refer to the company's reports filed with the SEC, and in particular, the report on Form 10-K for the year ended December 31, 2002. Each forward-looking statement speaks only as of the date of this release, and the company undertakes no obligation to publicly update or revise any forward-looking statement. PARKER DRILLING COMPANY AND SUBSIDIARIES Consolidated Statement of Operations (Unaudited)
Three Months Ended March 31, -------------------------- 2003 2002 ----------- ----------- (Dollars in Thousands) DRILLING AND RENTAL REVENUES U.S. Drilling $ 28,261 $ 22,705 International Drilling 54,254 71,593 Rental Tools 12,613 12,111 ----------- ----------- TOTAL DRILLING AND RENTAL REVENUES 95,128 106,409 ----------- ----------- DRILLING AND RENTAL OPERATING EXPENSES U.S. Drilling 21,898 20,246 International Drilling 37,670 48,487 Rental Tools 5,416 5,609 ----------- ----------- TOTAL DRILLING AND RENTAL OPERATING EXPENSES 64,984 74,342 ----------- ----------- DRILLING AND RENTAL GROSS MARGINS 30,144 32,067 ----------- ----------- Construction Contract Revenue 2,266 17,652 Construction Contract Expense 2,266 16,398 ----------- ----------- CONSTRUCTION CONTRACT GROSS MARGIN -- 1,254 ----------- ----------- Depreciation and Amortization 24,502 23,599 General and Administrative Expense 5,085 6,913 ----------- ----------- TOTAL OPERATING INCOME 557 2,809 ----------- ----------- OTHER INCOME AND (EXPENSE) Interest Expense (13,444) (12,460) Interest Income 206 352 Gain on Disposition of Assets 676 923 Minority Interest 73 -- Other - Net 81 (142) ----------- ----------- TOTAL OTHER INCOME AND (EXPENSE) (12,408) (11,327) ----------- ----------- INCOME (LOSS) BEFORE INCOME TAXES AND CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE (11,851) (8,518) ----------- ----------- INCOME TAX EXPENSE (BENEFIT) Current 4,350 7,751 Deferred -- (5,200) ----------- ----------- TOTAL INCOME TAX EXPENSE (BENEFIT) 4,350 2,551 ----------- ----------- INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE (16,201) (11,069) Cumulative Effect of Change in Accounting Principle -- (73,144) ----------- ----------- NET INCOME (LOSS) $ (16,201) $ (84,213) =========== =========== EARNINGS (LOSS) PER SHARE - BASIC Before Cumulative Effect of Change in Accounting Principle $ (0.17) $ (0.12) Cumulative Effect of Change in Accounting Principle $ -- $ (0.79) Net Income (Loss) $ (0.17) $ (0.91) EARNINGS (LOSS) PER SHARE - DILUTED Before Cumulative Effect of Change in Accounting Principle $ (0.17) $ (0.12) Cumulative Effect of Change in Accounting Principle $ -- $ (0.79) Net Income (Loss) $ (0.17) $ (0.91) AVERAGE COMMON SHARES OUTSTANDING Basic 92,848,131 92,227,213 Diluted 92,848,131 92,227,213
PARKER DRILLING COMPANY AND SUBSIDIARIES Consolidated Condensed Balance Sheet (Unaudited)
March 31, December 31, 2003 2002 --------- ------------ (Dollars in Thousands) ASSETS CURRENT ASSETS Cash and Cash Equivalents $ 84,402 $ 51,982 Accounts and Notes Receivable, Net 84,458 89,363 Rig Materials and Supplies 16,734 17,161 Other Current Assets 2,302 8,631 -------- -------- TOTAL CURRENT ASSETS 187,896 167,137 -------- -------- PROPERTY, PLANT AND EQUIPMENT, NET 622,388 641,278 DEFERRED CHARGES AND OTHER ASSETS Goodwill, Net 115,983 115,983 Other Assets 26,140 28,927 -------- -------- TOTAL DEFERRED CHARGES AND OTHER ASSETS 142,123 144,910 -------- -------- TOTAL ASSETS $952,407 $953,325 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts Payable and Accrued Liabilities $ 63,099 $ 50,742 Current Maturities of Long-Term Debt 6,603 6,486 Other Current Liabilities 6,501 4,347 -------- -------- TOTAL CURRENT LIABILITIES 76,203 61,575 -------- -------- LONG-TERM DEBT 581,733 583,444 OTHER LIABILITIES 9,897 7,680 STOCKHOLDERS' EQUITY 284,574 300,626 -------- -------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $952,407 $953,325 ======== ======== Current Ratio 2.47 2.71 Total Debt as a % of capitalization 67% 66% Book Value per common share $ 3.06 $ 3.24
PARKER DRILLING COMPANY AND SUBSIDIARIES Selected Financial Data (Unaudited)
THREE MONTHS ENDED ----------------------------------- MARCH 31, DECEMBER 31, ------------------- ------------ 2003 2002 2002 -------- -------- ------------ (Dollars in Thousands) DRILLING AND RENTAL REVENUES U.S. Drilling $ 28,261 $ 22,705 $ 33,781 International Land Drilling 31,346 45,274 37,371 International Offshore Drilling 22,908 26,319 23,121 Rental Tools 12,613 12,111 10,304 -------- -------- -------- TOTAL DRILLING AND RENTAL REVENUES 95,128 106,409 104,577 -------- -------- -------- DRILLING AND RENTAL OPERATING EXPENSES U.S. Drilling 21,898 20,246 23,071 International Land Drilling 21,478 29,169 23,324 International Offshore Drilling 16,192 19,318 16,037 Rental Tools 5,416 5,609 5,160 -------- -------- -------- TOTAL DRILLING AND RENTAL OPERATING EXPENSES 64,984 74,342 67,592 -------- -------- -------- DRILLING AND RENTAL GROSS MARGINS U.S. Drilling 6,363 2,459 10,710 International Land Drilling 9,868 16,105 14,047 International Offshore Drilling 6,716 7,001 7,084 Rental Tools 7,197 6,502 5,144 -------- -------- -------- TOTAL DRILLING AND RENTAL GROSS MARGINS 30,144 32,067 36,985 Construction Contract Gross Margin -- 1,254 438 -------- -------- -------- TOTAL GROSS MARGINS $ 30,144 $ 33,321 $ 37,423 ======== ======== ========
MARKETABLE RIG COUNT SUMMARY AS OF MARCH 31, 2003
TOTAL ----- U.S. GULF OF MEXICO RIGS BARGE RIGS Workover 8 Intermediate 5 Deep 9 --- Total 22 PLATFORM RIGS 4 JACKUP RIGS 7 TOTAL U.S. GULF OF MEXICO RIGS 33 INTERNATIONAL LAND RIGS Latin America 18 Asia Pacific 11 Africa/Middle East 3 CIS 9 --- TOTAL INTERNATIONAL LAND RIGS 41 INTERNATIONAL BARGE RIGS Nigeria 4 Caspian Sea 1 --- TOTAL INTERNATIONAL BARGE RIGS 5 TOTAL INTERNATIONAL RIGS 46 --- TOTAL MARKETABLE RIGS 79 ===