HOUSTON, Aug. 6, 2013 /PRNewswire/ -- Parker Drilling Company (NYSE:PKD), an international drilling services and rental tools provider, today issued a correction to its previously announced earnings report for the quarter ended June 30, 2013. This corrected report reflects additional non-routine expense of $2.5 million for the second quarter related to the April 2013 acquisition of International Tubular Services Limited (ITS) and certain affiliates. The effect of this expense, net of the related income tax benefit, reduced the company's net income as previously reported by $1.7 million, or $0.01 per diluted share, for the quarter ended June 30, 2013.
As a result of this change, Parker Drilling reported $8.3 million in net income and $0.07 per diluted share on revenues of $226.0 million for the quarter. This change is associated with non-routine expenses associated with the ITS acquisition. Net income and earnings per share, when adjusted for these non-routine expenses, remained at $17.3 million and $0.14 per diluted share. Adjusted EBITDA, excluding non-routine expenses, remained at $71.4 million.
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 rig utilization and dayrates; 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; capital expenditures; expansion and growth opportunities; acquisitions or joint ventures; asset sales; successful negotiation and execution of contracts; scheduled delivery of drilling rigs for operation; the strengthening of the Company's financial position; increases in market share; outcomes of legal proceedings and investigations; 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 based on reasonable assumptions, 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 that could adversely affect market conditions, fluctuations in oil and natural gas prices that could reduce the demand for drilling services, changes in laws or government regulations that could adversely affect the cost of doing business, our ability to refinance our debt and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the Securities and Exchange Commission. See "Risk Factors" in the Company's Annual Report filed on Form 10-K 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 high-performance contract drilling solutions, rental tools and project management services to the energy industry. Parker Drilling's active rig fleet includes 21 land rigs and one offshore barge rig in international locations, 12 barge rigs in the U.S. Gulf of Mexico, and two land rigs in Alaska. 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. Parker Drilling also performs contract drilling for customer-owned rigs and provides technical services addressing drilling challenges for E&P customers worldwide. More information about Parker Drilling can be found on the Company's website including operating status reports for the Company's U.S. Rental Tools business and its international and U.S. Gulf of Mexico rig fleets, updated monthly.
PARKER DRILLING COMPANY
Consolidated Condensed Balance Sheets
(Dollars in Thousands)
June 30, 2013
June 30, 2013
June 30, 2013
As Previously Announced
Adjustments
As Corrected
December 31, 2012
(Unaudited)
(Unaudited)
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents
$ 69,608
$ -
$ 69,608
$ 87,886
Accounts and Notes Receivable, Net
251,440
-
251,440
168,562
Rig Materials and Supplies
39,229
-
39,229
28,860
Deferred Costs
10,822
-
10,822
1,089
Deferred Income Taxes
16,411
-
16,411
8,742
Assets Held for Sale
8,656
-
8,656
6,800
Other Current Assets
33,540
-
33,540
46,345
TOTAL CURRENT ASSETS
429,706
-
429,706
348,284
PROPERTY, PLANT AND EQUIPMENT, NET
852,813
-
852,813
789,123
OTHER ASSETS
Deferred Income Taxes
107,771
186
107,957
95,295
Other Assets
46,061
-
46,061
23,031
TOTAL OTHER ASSETS
153,832
186
154,018
118,326
TOTAL ASSETS
$ 1,436,351
$ 186
$ 1,436,537
$ 1,255,733
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current Portion of Long-Term Debt
$ 10,000
$ -
$ 10,000
$ 10,000
Accounts Payable and Accrued Liabilities
174,205
1,899
176,104
141,866
TOTAL CURRENT LIABILITIES
184,205
1,899
186,104
151,866
LONG-TERM DEBT
589,229
-
589,229
469,205
LONG-TERM DEFERRED TAX LIABILITY
31,306
-
31,306
20,847
OTHER LONG-TERM LIABILITIES
22,661
-
22,661
23,182
TOTAL CONTROLLING INTEREST IN STOCKHOLDERS' EQUITY
606,940
(1,713)
605,227
591,404
Noncontrolling interest
2,010
-
2,010
(771)
TOTAL EQUITY
608,950
(1,713)
607,237
590,633
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$ 1,436,351
$ 186
$ 1,436,537
$ 1,255,733
Current Ratio
2.33
2.31
2.29
Total Debt as a Percent of Capitalization
50%
50%
45%
Book Value Per Common Share
$ 5.06
$ 5.04
$ 4.97
PARKER DRILLING COMPANY
Consolidated Statement Of Operations
(Dollars in Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended June 30,
Three Months Ended March 31,
2013
2013
2013
As Previously Announced
Adjustments
As Corrected
2012
2013
REVENUES:
$ 226,001
$ -
$ 226,001
$ 178,925
$ 167,155
EXPENSES:
Operating Expenses
143,549
-
143,549
104,526
117,046
Depreciation and Amortization
32,280
-
32,280
27,959
29,512
-
TOTAL OPERATING GROSS MARGIN
50,172
-
50,172
46,440
20,597
General and Administrative Expense
(19,853)
(2,525)
(22,378)
(7,420)
(12,883)
Gain on Disposition of Assets, Net
517
-
517
1,368
1,148
-
TOTAL OPERATING INCOME
30,836
(2,525)
28,311
40,388
8,862
-
OTHER INCOME AND (EXPENSE):
Interest Expense
(10,741)
-
(10,741)
(8,925)
(10,006)
Interest Income
2,203
-
2,203
53
59
Loss on extinguishment of debt
-
-
-
(1,649)
-
Change in fair value of derivative positions
17
-
17
38
37
Other
(183)
-
(183)
20
116
TOTAL OTHER EXPENSE
(8,704)
-
(8,704)
(10,463)
(9,794)
-
INCOME (LOSS) BEFORE INCOME TAXES
22,132
(2,525)
19,607
29,925
(932)
-
INCOME TAX EXPENSE (BENEFIT)
12,045
(812)
11,233
9,817
(1,504)
-
NET INCOME (LOSS)
10,087
(1,713)
8,374
20,108
572
Less: net income (loss) attributable to noncontrolling interest
93
-
93
25
(20)
NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST
$ 9,994
$ (1,713)
$ 8,281
$ 20,083
$ 592
EARNINGS PER SHARE - BASIC
Net Income (loss)
$ 0.08
$ 0.07
$ 0.17
$ 0.00
EARNINGS PER SHARE - DILUTED
Net Income (loss)
$ 0.08
$ 0.07
$ 0.17
$ 0.00
NUMBER OF COMMON SHARES USED IN COMPUTING EARNINGS PER SHARE
Basic
119,483,780
119,483,780
117,410,212
118,867,678
Diluted
121,860,011
121,860,011
118,526,879
120,072,574
PARKER DRILLING COMPANY
Consolidated Statement Of Operations
(Dollars in Thousands, Except Per Share Data)
(Unaudited)
Six Months Ended June 30,
2013
2013
2013
As Previously Announced
Adjustments
As Corrected
2012
REVENUES:
$ 393,156
$ -
$ 393,156
$ 355,494
EXPENSES:
Operating Expenses
260,595
-
260,595
199,458
Depreciation and Amortization
61,792
-
61,792
55,578
322,387
-
322,387
255,036
TOTAL OPERATING GROSS MARGIN
70,769
-
70,769
100,458
General and Administrative Expense
(32,736)
(2,525)
(35,261)
(12,917)
Gain on Disposition of Assets, Net
1,665
-
1,665
1,860
TOTAL OPERATING INCOME
39,698
(2,525)
37,173
89,401
OTHER INCOME AND (EXPENSE):
Interest Expense
(20,747)
-
(20,747)
(16,962)
Interest Income
2,251
-
2,251
79
Loss on extinguishment of debt
-
-
-
(1,649)
Change in fair value of derivative positions
54
-
54
(11)
Other
(56)
-
(56)
36
TOTAL OTHER EXPENSE
(18,498)
-
(18,498)
(18,507)
INCOME (LOSS) BEFORE INCOME TAXES
21,200
(2,525)
18,675
70,894
INCOME TAX EXPENSE (BENEFIT)
10,541
(812)
9,729
24,460
NET INCOME (LOSS)
10,659
(1,713)
8,946
46,434
Less: net income (loss) attributable to noncontrolling interest
73
-
73
(41)
NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST
$ 10,586
$ (1,713)
$ 8,873
$ 46,475
EARNINGS PER SHARE - BASIC
$ 0.09
$ 0.07
$ 0.40
EARNINGS PER SHARE - DILUTED
$ 0.09
$ 0.07
$ 0.39
NUMBER OF COMMON SHARES USED IN COMPUTING EARNINGS PER SHARE
Basic
119,177,431
119,177,431
117,129,364
Diluted
121,498,223
121,498,223
118,623,037
PARKER DRILLING COMPANY
Selected Financial Data
(Dollars in Thousands)
(Unaudited)
Three Months Ended
Six Months Ended June 30,
June 30,
March 31,
2013
2012
2013
2013
2012
REVENUES:
Rental Tools
$ 82,022
$ 65,002
$ 57,082
$ 139,105
$ 131,286
U.S. Barge Drilling
38,301
33,292
29,865
68,165
61,127
U.S. Drilling
17,910
-
11,635
29,545
-
International Drilling
83,182
76,923
64,650
147,832
155,673
Technical Services
4,586
3,708
3,923
8,509
7,408
Total Revenues
226,001
178,925
167,155
393,156
355,494
OPERATING EXPENSES:
Rental Tools
43,675
22,552
24,875
68,550
44,182
U.S. Barge Drilling
18,290
18,792
17,441
35,732
35,932
U.S. Drilling
14,270
533
11,309
25,578
999
International Drilling
62,855
58,683
59,854
122,709
110,926
Technical Services
4,459
3,966
3,567
8,026
7,419
Total Operating Expenses
143,549
104,526
117,046
260,595
199,458
OPERATING GROSS MARGIN:
Rental Tools
38,347
42,450
32,207
70,555
87,104
U.S. Barge Drilling
20,011
14,500
12,424
32,433
25,195
U.S. Drilling
3,640
(533)
326
3,967
(999)
International Drilling
20,327
18,240
4,796
25,123
44,747
Technical Services
127
(258)
356
483
(11)
Depreciation and Amortization
(32,280)
(27,959)
(29,512)
(61,792)
(55,578)
Total Operating Gross Margin
50,172
46,440
20,597
70,769
100,458
PARKER DRILLING COMPANY
Adjusted EBITDA
(Dollars in Thousands)
Three Months Ended
June 30, 2013
June 30, 2013
June 30, 2013
As Previously Announced
Adjustments
As Corrected
March 31, 2013
December 31, 2012
September 30, 2012
June 30, 2012
Net Income (Loss) Attributable to Controlling Interest