HOUSTON, Feb. 19, 2015 /PRNewswire/ -- Paragon Offshore
plc ("Paragon") (NYSE: PGN) today reported a fourth quarter 2014
net income of $2.8 million, or
$0.03 per diluted share as compared
to fourth quarter 2013 net income of $37.6
million, or $0.44 per diluted
share. Results for the quarter include a $130.5 million, or $1.47 per diluted share, non-cash impairment
charge related to Paragon's four cold-stacked units, the Paragon
MSS3, Paragon DPDS4, Paragon FPSO1, and
Paragon B153 each of which the company has decided to scrap.
Results also included an $11.7
million, or $0.13 per diluted
share, gain related to the previously disclosed repurchase of an
aggregate principal amount of $35.2
million of its senior unsecured notes. Excluding the
impairment, the tax impact of the loss on the impairment, and the
gain, Paragon's adjusted net income (see Reconciliation of GAAP to
Non-GAAP Financial Measures Table for a reconciliation to net
income) was $80.3 million, or
$0.90 per diluted share.
Results for Prospector Offshore Drilling S.A. ("Prospector"),
in which Paragon acquired a majority interest on November 17, 2014, were included in Paragon's
results for the quarter.
The Company has revised its tax provision and net income
for the three month period ended September
30, 2014 to correct the amortization of our deferred tax
liability related to the Paragon DPDS1. In connection
with the impairment of the Paragon DPDS1 during the third
quarter, a tax benefit should have been recorded to proportionally
eliminate the related deferred tax liability specifically related
to the Paragon DPDS1. The revision resulted in an
additional non-cash tax benefit of $25.1
million, or $0.28 per diluted
share and corresponding increase to net income during the third
quarter of 2014. We have concluded that this misstatement was
not material to our consolidated and combined financial statements
for the aforementioned prior period.
For the twelve month period ending December 31, 2014, Paragon reported a loss of
$646.7 million, or $7.63 per diluted share, on revenues of
$2.0 billion compared to net income
of $360.3 million, or $4.25 per diluted share, on revenues of
$1.9 billion for the twelve months
ending December 31, 2013.
Results for the full year 2014 include non-cash impairment charges
of $1.1 billion as well as gains of
$18.7 million related to the
repurchase of the company's senior unsecured notes. Excluding
these items, Paragon's adjusted net income for full year 2014 was
$351.8 million or $4.07 per diluted share. This compares to
net income for full year 2013 of $344.0
million, or $4.06 per diluted
share, after adjusting 2013 results for a $43.7 million impairment, a $35.6 million gain on disposal of assets and a
$24.4 million net gain on contract
settlements/extinguishments (see Reconciliation of GAAP to Non-GAAP
Financial Measures Table for a reconciliation to net income).
For periods prior to Paragon's spin-off from Noble Corporation
plc ("Noble") on August 1, 2014 (the
"Spin-Off"), results of operations are based on Noble's
standard-specification business and include contributions from
three standard specifications rigs retained by Noble and three
standard specification rigs that were sold prior to the
Spin-Off. For more information regarding the Spin-Off, please
see Paragon's filings with the U.S. Securities and Exchange
Commission (the "SEC") available on the company's website at
www.paragonoffshore.com.
"Paragon continued to deliver excellent operating results during
the fourth quarter against an industry backdrop fraught with
volatility," said Randall D.
Stilley, President and Chief Executive Officer. "In
addition, we successfully executed the complex acquisition of
Prospector, which begins the strategic renewal of our jackup
fleet. We also strengthened our balance sheet by repurchasing
our senior notes below par value, and secured a rig agreement with
Petrobras in Brazil which
preserved our backlog and improved our cash position. The coming
year will be a challenging one, but we believe Paragon's geographic
diversity, fleet quality, operating capabilities, and safety
performance will distinguish us in a market where many competitors,
particularly those with newbuild assets, may struggle to secure
work."
Total revenues for the fourth quarter of 2014 were $495.0 million compared to $505.2 million in the third quarter of 2014.
Excluding the $16.2 million in
revenue for the rigs retained by Noble, total revenues for the
third quarter of 2014 were $489.0
million. Paragon reported utilization for its marketed rig
fleet, which excludes two cold stacked floaters and one cold
stacked jackup, as 84 percent for the fourth quarter of 2014, which
was an improvement of two percent compared to the third quarter of
2014. Average daily revenues decreased one percent in the fourth
quarter to $149,000 per rig compared
to the previous quarter average of $151,000 per rig. Contract drilling operating
costs increased three percent in the fourth quarter to $224.5 million compared to $217.4 million in the third quarter of 2014.
Net cash from operating activities was $130.9 million in the fourth quarter of 2014 as
compared to $160.4 million for the
third quarter of the year. Capital expenditures in the fourth
quarter totalled $79.3 million,
bringing the total for the twelve months ended December 31, 2014 to $261.6 million. At December 31, 2014, liquidity, defined as cash and
cash equivalents plus availability under the company's revolving
credit facility, totalled $703.5
million while the ratio of the company's net debt to
trailing twelve months EBITDA, as defined in the company's
revolving credit facility, was 2.0 at December 31, 2014. The calculated ratio excludes
$366.7 million of debt related to the
acquisition of Prospector which is classified as an unrestricted
subsidiary of Paragon under the revolving credit facility.
Operating Highlights
Paragon's total contract backlog at December 31, 2014 was an estimated $2.2 billion compared to $2.0 billion at September
30, 2014.
Utilization of Paragon's marketed floating rig fleet decreased
in the fourth quarter to 94 percent compared to 100 percent in the
third quarter of 2014. Average daily revenues for Paragon's
floating rig fleet decreased one percent to $287,000 per rig in the fourth quarter of 2014
from $291,000 per rig in the third
quarter of 2014.
Fourth quarter 2014 utilization of Paragon's marketed jackup rig
fleet increased to 82 percent compared to the 79 percent
utilization achieved during the third quarter of 2014. Average
daily revenues for Paragon's jackup fleet during the fourth quarter
improved by three percent to $120,000
per rig from $117,000 per rig during
the third quarter of 2014.
At the end of the fourth quarter of 2014, an estimated 55
percent of the available rig operating days were committed for
2015, including 71 percent and 52 percent of the floating and
jackup rig days, respectively. The calculations for committed
operating days exclude available days related to two floating
units, one jackup and the FPSO that are currently cold stacked.
Outlook
During the quarter, Paragon added approximately $590.3 million in backlog related primarily to
new contracts and extensions in the North Sea and India. This
includes an increase in the North Sea of approximately $353.9 million related to the acquisition of the
Prospector 1, which is contracted until mid-September 2016 at a dayrate of $185,000 and the Prospector 5, which is
contracted until mid-November 2017 at
a dayrate of $218,000. In
India, three new contracts were added for the Paragon M1161,
Paragon L786, and Paragon L1112, each of which have
contract lengths of three years with respective net dayrates of
$62,000, $53,000 and $62,000.
In addition, Paragon announced in its February 17, 2015 Fleet Status Report that in the
North Sea, the Paragon HZ1 received a contract extension
from early July 2015 to late
August 2016 at a rate of $142,000 while the Paragon C463 received a
new contract with GDF SUEZ for 225 days beginning late January 2015 at a dayrate of $130,000. Finally, the Paragon
C20052 received a contract award for 75 days at $170,000.
Mr. Stilley concluded, "Our most recent Fleet Status Report
illustrates clearly that our drilling rigs continue to be in
demand. Our safe, reliable, and efficient operations have
enabled us to position ourselves as the high-quality, low-cost
drilling contractor and in the current low oil-price environment,
our customers will continue to realize value through their choice
of Paragon Offshore."
About Paragon Offshore
Paragon is a global provider of offshore drilling rigs.
Paragon's drilling fleet includes 32 jackups and six floaters (four
drillships and two semisubmersibles). In addition, Paragon is the
majority shareholder of Prospector Offshore Drilling S.A., a
publicly traded offshore drilling company on the Oslo Axess stock
exchange that owns and operates two high specification
jackups. Paragon's primary business is contracting its rigs,
related equipment and work crews to conduct oil and gas drilling
and workover operations for its exploration and production
customers on a dayrate basis around the world. Paragon's principal
executive offices are located in Houston,
Texas. Paragon is a public limited company registered in
England and Wales with company number 08814042 and
registered office at 20-22 Bedford
Row, London, WC1R 4JS,
England. Additional information is
available at www.paragonoffshore.com.
Forward-Looking Disclosure Statement
This release contains forward-looking statements. Statements
regarding contract backlog, earnings, costs, revenue, rig demand,
fleet condition or performance, shareholder value, contract
commitments, dayrates, contract commencements, contract extensions
or renewals, industry fundamentals, customer relationships and
requirements, strategic initiatives, future performance, growth
opportunities, market outlook, as well as any other statements that
are not historical facts in this release, are forward-looking
statements that involve certain risks, uncertainties and
assumptions. These include but are not limited to risks associated
with the general nature of the oil and gas industry, risks
associated with the operation of Paragon as a separate, publicly
traded company, actions by regulatory authorities, customers and
other third parties, and other factors detailed in the "Risk
Factors" section of Paragon's registration statement on Form 10 as
filed with the SEC on July 14, 2014,
in Paragon's Quarterly Report on Form 10-Q for the fiscal quarter
ended September 30, 2014, and in
Paragon's other filings with the SEC, which are available free of
charge on the SEC's website at www.sec.gov. Should one or more of
these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially
from those indicated.
Conference Call
Paragon also scheduled a teleconference and webcast related to
its fourth quarter and full year 2014 results on Friday, February 20, 2015, at 8:00 a.m. U.S. Central Standard Time. The
teleconference can be accessed from the U.S. and Canada by dialling 1-888-771-4371, or
internationally by dialling 1-847-585-4405, and using access code:
38946331. Interested parties may also listen to the webcast through
a link posted on Paragon's website at www.paragonoffshore.com,
under "Events & Presentations" in the "Investor Relations"
section of the website.
A telephonic replay of the conference call will be available on
Friday, February 20, 2015, beginning
at approximately 12:00 p.m. U.S.
Central Standard Time, through Friday, March
6, 2015, ending at approximately 11:00 p.m. U.S. Central Standard Time. The phone
number for the conference call replay is 1-888-843-7419 or, for
calls from outside of the U.S., 1-630-652-3042, using access code:
38946331#. A replay of the conference call will also be
available on Paragon's website at www.paragonoffshore.com, under
"Events & Presentations" in the "Investor Relations" section of
the website.
For additional
information, contact:
|
|
|
|
For
Investors
|
Lee M.
Ahlstrom
|
&
Media:
|
Senior Vice President
– Investor Relations, Strategy and Planning
|
|
+1.832.783.4040
|
Logo -
http://photos.prnewswire.com/prnh/20140731/132134
PARAGON
OFFSHORE PLC
|
CONSOLIDATED
AND COMBINED STATEMENTS OF INCOME
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
Contract
drilling services
|
|
$ 456,026
|
|
$ 461,985
|
|
$ 1,866,497
|
|
$ 1,807,952
|
|
Reimbursables
|
|
30,412
|
|
13,324
|
|
93,786
|
|
49,810
|
|
Labor contract
drilling services
|
|
8,482
|
|
8,996
|
|
33,401
|
|
35,146
|
|
Other
|
|
73
|
|
-
|
|
78
|
|
94
|
|
|
|
494,993
|
|
484,305
|
|
1,993,762
|
|
1,893,002
|
Operating
costs and expenses
|
|
|
|
|
|
|
|
|
|
Contract
drilling services
|
|
224,536
|
|
244,556
|
|
890,694
|
|
914,702
|
|
Reimbursables
|
|
26,401
|
|
11,156
|
|
77,843
|
|
38,341
|
|
Labor contract
drilling services
|
|
5,745
|
|
6,477
|
|
24,774
|
|
24,333
|
|
Depreciation
and amortization
|
|
91,088
|
|
107,259
|
|
422,235
|
|
413,305
|
|
General and
administrative
|
|
24,116
|
|
16,993
|
|
62,081
|
|
64,907
|
|
Loss on
impairment
|
|
130,540
|
|
40,103
|
|
1,059,487
|
|
43,688
|
|
Gain on
disposal of assets, net
|
|
-
|
|
-
|
|
-
|
|
(35,646)
|
|
Gain on
contract settlements/extinguishments, net
|
|
-
|
|
-
|
|
-
|
|
(24,373)
|
|
Gain on
repurchase of long-term debt
|
|
(11,744)
|
|
-
|
|
(18,675)
|
|
-
|
|
|
|
490,682
|
|
426,544
|
|
2,518,439
|
|
1,439,257
|
|
|
|
|
|
|
|
|
|
|
Operating
income (loss)
|
|
4,311
|
|
57,761
|
|
(524,677)
|
|
453,745
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
Interest
expense, net of amount capitalized
|
|
(27,990)
|
|
(2,385)
|
|
(56,732)
|
|
(5,938)
|
|
Interest income
and other, net
|
|
3,116
|
|
(3,358)
|
|
3,998
|
|
(1,897)
|
Income
(loss) before income taxes
|
|
(20,563)
|
|
52,018
|
|
(577,411)
|
|
445,910
|
|
Income tax
provision
|
|
23,307
|
|
(14,463)
|
|
(69,394)
|
|
(85,605)
|
Net income
(loss)
|
|
2,744
|
|
37,555
|
|
(646,805)
|
|
360,305
|
|
Net loss
attributable to non-controlling interests
|
|
59
|
|
-
|
|
59
|
|
-
|
Net income
(loss) attributable to Paragon Offshore
|
|
$ 2,803
|
|
$ 37,555
|
|
$ (646,746)
|
|
$ 360,305
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$ 0.03
|
|
$ 0.44
|
|
$ (7.63)
|
|
$
4.25
|
PARAGON
OFFSHORE PLC
|
CONSOLIDATED
AND COMBINED BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2014
|
|
2013
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$ 69,274
|
|
$ 36,581
|
|
Accounts
receivable
|
|
539,376
|
|
356,241
|
|
Prepaid and
other current assets
|
|
104,644
|
|
51,182
|
Total current
assets
|
|
713,294
|
|
444,004
|
|
|
|
|
|
|
Property and
equipment, net
|
|
2,410,360
|
|
3,459,684
|
|
|
|
|
|
|
Other
assets
|
|
129,735
|
|
79,111
|
|
Total
assets
|
|
$ 3,253,389
|
|
$ 3,982,799
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Current
maturities of long-term debt
|
|
$ 272,166
|
|
$
-
|
|
Accounts
payable
|
|
160,874
|
|
124,442
|
|
Accrued payroll
and related costs
|
|
81,416
|
|
60,738
|
|
Other current
liabilities
|
|
207,838
|
|
41,374
|
Total current
liabilities
|
|
722,294
|
|
226,554
|
|
|
|
|
|
|
Long-term
debt
|
|
1,888,439
|
|
1,561,141
|
Deferred income
taxes
|
|
58,497
|
|
101,703
|
Other
liabilities
|
|
89,910
|
|
88,068
|
|
Total
liabilities
|
|
2,759,140
|
|
1,977,466
|
|
|
|
|
|
|
Total
shareholders' equity
|
|
491,608
|
|
2,005,333
|
|
Non-controlling
interest
|
|
2,641
|
|
-
|
|
Total
equity
|
|
494,249
|
|
2,005,333
|
|
Total
liabilities and equity
|
|
$ 3,253,389
|
|
$ 3,982,799
|
PARAGON
OFFSHORE PLC
|
CONSOLIDATED
AND COMBINED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
Twelve Months
Ended
|
|
|
|
December
31,
|
|
|
|
2014
|
|
2013
|
Cash flows
from operating activities
|
|
|
|
|
|
Net income
(loss)
|
|
$ (646,805)
|
|
$ 360,305
|
|
Adjustments to
reconcile net income to net cash from operating
activities:
|
|
|
|
|
Depreciation
and amortization
|
|
422,235
|
|
413,305
|
|
Loss on
impairment
|
|
1,059,487
|
|
43,688
|
|
Gain on
disposal of assets, net
|
|
-
|
|
(35,646)
|
|
Gain on
repurchase of Senior Notes
|
|
(18,675)
|
|
-
|
|
Other changes
in operating activities
|
|
(119,256)
|
|
40,823
|
|
Net cash from
operating activities
|
|
696,986
|
|
822,475
|
|
|
|
|
|
|
Cash flows
from investing activities
|
|
|
|
|
|
Capital
expenditures
|
|
(261,641)
|
|
(366,361)
|
|
Proceeds from
disposal of assets
|
|
6,570
|
|
61,000
|
|
Acquisition of
Prospector Offshore Drilling S.A.
|
|
(176,529)
|
|
-
|
|
Acquisition of
Prospector Offshore Drilling S.A. non-controlling
interest
|
|
(10,346)
|
|
-
|
|
Change in
accrued capital expenditures
|
|
1,230
|
|
(12,365)
|
|
Net cash from
investing activities
|
|
(440,716)
|
|
(317,726)
|
|
|
|
|
|
|
Cash flows
from financing activities
|
|
|
|
|
|
Net change in
borrowings outstanding on bank credit facilities
|
|
859,847
|
|
1,221,332
|
|
Proceeds from
issuance of Senior Notes and Term Loan Facility
|
|
1,710,550
|
|
-
|
|
Repurchase of
Senior Notes
|
|
(65,354)
|
|
-
|
|
Dividends
paid
|
|
(11,072)
|
|
-
|
|
Debt issuance
costs
|
|
(19,253)
|
|
(2,484)
|
|
Net transfers
to parent
|
|
(2,698,295)
|
|
(1,757,554)
|
|
Net cash from
financing activities
|
|
(223,577)
|
|
(538,706)
|
|
Net change in
cash and cash equivalents
|
|
32,693
|
|
(33,957)
|
Cash and
cash equivalents, beginning of period
|
|
36,581
|
|
70,538
|
Cash and
cash equivalents, end of period
|
|
$ 69,274
|
|
$ 36,581
|
PARAGON
OFFSHORE PLC
|
OPERATIONAL
INFORMATION
|
(In thousands,
except operating statistics)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Rigs Retained or
Sold by Noble
|
|
As
Adjusted
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
September 30,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2014
|
|
2013
|
|
2014
|
|
2014
|
|
2013
|
|
2014
|
Rig fleet
operating statistics (1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jackups:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
80%
|
|
85%
|
|
77%
|
|
n/a
|
|
57%
|
|
50%
|
|
80%
|
|
87%
|
|
77%
|
|
Marketed
Utilization (3)
|
|
82%
|
|
88%
|
|
79%
|
|
n/a
|
|
57%
|
|
50%
|
|
82%
|
|
90%
|
|
80%
|
|
Operating
Days
|
|
2,548
|
|
2,830
|
|
2,447
|
|
n/a
|
|
105
|
|
31
|
|
2,548
|
|
2,725
|
|
2,416
|
|
Average
Dayrate
|
|
$ 120,252
|
|
$ 106,429
|
|
$ 116,967
|
|
n/a
|
|
$ 98,527
|
|
$ 98,194
|
|
$ 120,252
|
|
$ 106,734
|
|
$ 117,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Floaters:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
71%
|
|
68%
|
|
76%
|
|
n/a
|
|
82%
|
|
100%
|
|
71%
|
|
66%
|
|
75%
|
|
Marketed
Utilization (3)
|
|
94%
|
|
87%
|
|
100%
|
|
n/a
|
|
82%
|
|
100%
|
|
94%
|
|
88%
|
|
100%
|
|
Operating
Days
|
|
521
|
|
563
|
|
583
|
|
n/a
|
|
75
|
|
31
|
|
521
|
|
488
|
|
552
|
|
Average
Dayrate
|
|
$ 287,303
|
|
$ 285,587
|
|
$ 291,498
|
|
n/a
|
|
$ 410,954
|
|
$ 414,839
|
|
$ 287,303
|
|
$ 266,197
|
|
$ 284,571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
78%
|
|
78%
|
|
77%
|
|
n/a
|
|
39%
|
|
67%
|
|
76%
|
|
81%
|
|
77%
|
|
Marketed
Utilization (3)
|
|
84%
|
|
84%
|
|
82%
|
|
n/a
|
|
39%
|
|
67%
|
|
84%
|
|
90%
|
|
83%
|
|
Operating
Days
|
|
3,069
|
|
3,393
|
|
3,030
|
|
n/a
|
|
180
|
|
62
|
|
3,069
|
|
3,213
|
|
2,968
|
|
Average
Dayrate
|
|
$ 148,615
|
|
$ 136,150
|
|
$ 150,548
|
|
n/a
|
|
$ 229,037
|
|
$ 256,516
|
|
$ 148,615
|
|
$ 118,063
|
|
$ 148,334
|
|
|
|
|
(1)
|
We define average rig
utilization for a specific period as the total number of days our
rigs are operating under contract, divided by the product of the
total number of our rigs, including cold-stacked rigs, and the
number of calendar days in such period. Information reflects
our policy of reporting on the basis of the number of available
rigs in our fleet.
|
(2)
|
Excludes the
Paragon FPSO1.
|
(3)
|
Excludes the impact
of Paragon cold-stacked rigs.
|
PARAGON
OFFSHORE PLC
|
CALCULATION
OF BASIC AND DILUTED EARNINGS PER SHARE
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
The following
table sets forth the computation of basic and diluted net income
and earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Allocation
of net income
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
|
|
|
|
|
|
|
Net income
(loss) attributable to Paragon Offshore
|
|
$ 2,803
|
|
$ 37,555
|
|
$ (646,746)
|
|
$ 360,305
|
Earnings
allocated to unvested share-based payment awards
(1)
|
|
(127)
|
|
-
|
|
-
|
|
-
|
Net income
to ordinary shareholders - basic and diluted
|
|
$ 2,676
|
|
$ 37,555
|
|
$ (646,746)
|
|
$ 360,305
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares outstanding - basic and
diluted
|
|
84,753
|
|
84,753
|
|
84,753
|
|
84,753
|
|
|
|
|
|
|
|
|
|
Weighted
average unvested share-based payment awards
(1)
|
|
4,012
|
|
-
|
|
1,761
|
|
-
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
$ 0.03
|
|
$ 0.44
|
|
$ (7.63)
|
|
$ 4.25
|
|
|
|
|
(1)
|
No earnings were
allocated to unvested share-based payment awards in our earnings
per share calculation for the year ended December 31, 2014 due to
our net loss in the current year. Our basis of presentation related
to weighted average unvested shares outstanding for all periods
prior to the Spin-Off does not include our unvested restricted
stock units that were granted to our employees in conjunction with
Paragon's 2014 Employee Omnibus Incentive Plan. As a result,
we also have no earnings allocated to unvested share-based payment
awards in our earnings per share calculation for periods prior to
the Spin-Off.
|
PARAGON
OFFSHORE PLC
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
|
|
|
(In thousands,
except per share amounts)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
The following
tables sets forth the reconciliation of adjusted net income
(non-GAAP) to net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Net income
(loss) attributable to Paragon Offshore
|
|
$ 2,803
|
|
$ 37,555
|
|
$ (646,746)
|
|
$ 360,305
|
Adjustments:
|
|
|
|
|
|
|
|
|
Gain on
repurchase of long-term debt
|
|
(11,744)
|
|
-
|
|
(18,675)
|
|
-
|
Gain on
disposal of assets, net
|
|
-
|
|
-
|
|
-
|
|
(35,646)
|
Gain on
contract settlements/extinguishments, net
|
|
-
|
|
-
|
|
-
|
|
(24,373)
|
Tax impact of
loss on impairment (1)
|
|
(41,273)
|
|
-
|
|
(42,250)
|
|
-
|
Loss on
impairment
|
|
130,540
|
|
40,103
|
|
1,059,487
|
|
43,688
|
Adjusted net
income
|
|
$ 80,326
|
|
$ 77,658
|
|
$ 351,816
|
|
$ 343,974
|
|
|
|
|
|
|
|
|
|
Allocation
of adjusted net income
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
|
$ 80,326
|
|
$ 77,658
|
|
$ 351,816
|
|
$ 343,974
|
Earnings
allocated to unvested share-based payment awards
(2)
|
|
(3,631)
|
|
-
|
|
(7,161)
|
|
-
|
Adjusted net
income to ordinary shareholders - basic and
diluted
|
|
$ 76,695
|
|
$ 77,658
|
|
$ 344,655
|
|
$ 343,974
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares outstanding - basic and
diluted
|
|
84,753
|
-
|
84,753
|
-
|
84,753
|
-
|
84,753
|
|
|
|
|
|
|
|
|
|
Weighted
average unvested share-based payment awards
|
|
4,012
|
|
-
|
|
1,761
|
|
-
|
|
|
|
|
|
|
|
|
|
Adjusted
earnings per share
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
$ 0.90
|
|
$ 0.92
|
|
$
4.07
|
|
$
4.06
|
|
|
|
|
(1)
|
No adjustments for
taxes were made for 2013 as income taxes were prepared on a
separate return basis as if we had been a standalone
company.
|
(2)
|
Although no earnings
were allocated to unvested share-based payment awards in our
earnings per share calculation for the year ended December 31, 2014
due to our net loss in the current year, we have allocated earnings
to unvested share-based payment awards in our calculation of
adjusted earnings per share.
|
PARAGON
OFFSHORE PLC
|
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES (cont'd)
|
(In thousands,
except operating statistics)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Rigs Retained or
Sold by Noble
|
|
As
Adjusted
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
September 30,
|
|
|
|
2014
|
|
2013
|
|
2014 (1)
|
|
2014
|
|
2013
|
|
2014
|
|
2014
|
|
2013
|
|
2014 (1)
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
drilling services
|
|
$ 456,026
|
|
$ 461,985
|
|
$ 456,174
|
|
$ -
|
|
$ 41,341
|
|
$ 15,904
|
|
$ 456,026
|
|
$ 420,644
|
|
$ 440,270
|
|
Labor contract
drilling services
|
|
8,482
|
|
8,996
|
|
8,562
|
|
-
|
|
-
|
|
-
|
|
8,482
|
|
8,996
|
|
8,562
|
|
Reimbursables
and other
|
|
30,485
|
|
13,324
|
|
40,486
|
|
-
|
|
1,001
|
|
327
|
|
30,485
|
|
12,323
|
|
40,159
|
|
|
|
494,993
|
|
484,305
|
|
505,222
|
|
-
|
|
42,342
|
|
16,231
|
|
494,993
|
|
441,963
|
|
488,991
|
Operating
costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract
drilling services
|
|
224,536
|
|
244,556
|
|
217,378
|
|
-
|
|
18,922
|
|
5,701
|
|
224,536
|
|
225,634
|
|
211,677
|
|
Labor contract
drilling services
|
|
5,745
|
|
6,477
|
|
6,593
|
|
-
|
|
-
|
|
-
|
|
5,745
|
|
6,477
|
|
6,593
|
|
Reimbursables
|
|
26,401
|
|
11,156
|
|
35,592
|
|
-
|
|
624
|
|
158
|
|
26,401
|
|
10,532
|
|
35,434
|
|
Depreciation
and amortization
|
|
91,088
|
|
107,259
|
|
108,027
|
|
-
|
|
12,270
|
|
3,877
|
|
91,088
|
|
94,989
|
|
104,150
|
|
General and
administrative
|
|
24,116
|
|
16,993
|
|
12,037
|
|
-
|
|
1,555
|
|
536
|
|
24,116
|
|
15,438
|
|
11,501
|
|
Loss on
impairment
|
|
130,540
|
|
40,103
|
|
928,947
|
|
-
|
|
-
|
|
-
|
|
130,540
|
|
40,103
|
|
928,947
|
|
Gain on
repurchase of long-term debt
|
|
(11,744)
|
|
-
|
|
(6,931)
|
|
-
|
|
-
|
|
-
|
|
(11,744)
|
|
-
|
|
(6,931)
|
|
|
|
490,682
|
|
426,544
|
|
1,301,643
|
|
-
|
|
33,371
|
|
10,272
|
|
490,682
|
|
393,173
|
|
1,291,371
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
4,311
|
|
57,761
|
|
(796,421)
|
|
-
|
|
8,971
|
|
5,959
|
|
4,311
|
|
48,790
|
|
(802,380)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense, net of amount capitalized
|
|
(27,990)
|
|
(2,385)
|
|
(22,453)
|
|
n/a
|
|
n/a
|
|
n/a
|
|
(27,990)
|
|
(2,385)
|
|
(22,453)
|
|
Interest income
and other, net
|
|
3,116
|
|
(3,358)
|
|
340
|
|
n/a
|
|
n/a
|
|
n/a
|
|
3,116
|
|
(3,358)
|
|
340
|
Income
(loss) before income taxes
|
|
(20,563)
|
|
52,018
|
|
(818,534)
|
|
-
|
|
8,971
|
|
5,959
|
|
(20,563)
|
|
43,047
|
|
(824,493)
|
|
Income tax
provision
|
|
23,307
|
|
(14,463)
|
|
(50,626)
|
|
n/a
|
|
n/a
|
|
n/a
|
|
23,307
|
|
(14,463)
|
|
(50,626)
|
Net income
(loss)
|
|
$ 2,744
|
|
$ 37,555
|
|
$ (869,160)
|
|
$ -
|
|
$ 8,971
|
|
$ 5,959
|
|
$ 2,744
|
|
$ 28,584
|
|
$ (875,119)
|
|
Net loss
attributable to non-controlling interests
|
|
59
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
59
|
|
-
|
|
-
|
Net income
(loss) attributable to Paragon Offshore
|
|
$ 2,803
|
|
$ 37,555
|
|
$ (869,160)
|
|
$ -
|
|
$ 8,971
|
|
$ 5,959
|
|
$ 2,803
|
|
$ 28,584
|
|
$ (875,119)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
provision
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(23,307)
|
|
14,463
|
|
50,626
|
|
Interest
expense, net of amount capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27,990
|
|
2,385
|
|
22,453
|
|
Loss on
impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
130,540
|
|
40,103
|
|
928,947
|
|
Depreciation
and amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
91,088
|
|
94,989
|
|
104,150
|
|
Gain on
repurchase of long-term debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11,744)
|
|
-
|
|
(6,931)
|
|
Interest income
and other, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,116)
|
|
3,358
|
|
(340)
|
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 214,254
|
|
$ 183,882
|
|
$ 223,786
|
|
|
|
|
(1)
|
Net income for the
three month period ended September 30, 2014 has been revised to
correct the amortization of our deferred tax liability related to
the Paragon DPDS1. In connection with the impairment of the
Paragon DPDS1during the third quarter, a tax benefit should
have been recorded to proportionally eliminate the deferred tax
liability specifically related to the Paragon DPDS1.
The revision resulted in an additional non-cash tax benefit of
$25.1 million and corresponding increase to net income during the
third quarter. We have concluded that this misstatement was
not material to our consolidated and combined financial statements
for the aforementioned prior period.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/paragon-offshore-reports-fourth-quarter-and-full-year-2014-results-300038711.html
SOURCE Paragon Offshore plc