HOUSTON, Aug. 12, 2015
/PRNewswire/ -- Paragon Offshore plc ("Paragon") (NYSE: PGN)
today reported second quarter 2015 net income of $47.3 million, or $0.51 per diluted share as compared to second
quarter 2014 net income of $95.0
million, or $1.12 per diluted
share. Results for the quarter include a $4.1 million, or $0.04 per diluted share, loss on the sale of an
asset and a $1.7 million, or
$0.02 per diluted share, non-cash
impairment charge related to assets which the company previously
announced it had decided to retire from service. Excluding the
above charges, Paragon's adjusted net income (see Reconciliation of
GAAP to Non-GAAP Financial Measures Table for a reconciliation to
net income) was $53.1 million, or
$0.57 per diluted share.
The results for the second quarter include a tax benefit of
$18.5 million, as compared to a tax
provision of $6.6 million in the
first quarter of 2015, primarily as a result of restructuring
certain of our operations. 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
(our "Predecessor") and include contributions from three standard
specification 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's second quarter 2015 results demonstrate our ongoing
ability to deliver safe, reliable and efficient operations while
controlling costs and securing additional backlog," said
Randall D. Stilley, President and
Chief Executive Officer. "Furthermore, we secured $300 million of financing on Prospector 1
and Prospector 5 through the recently closed sale-leaseback
transaction, enhancing our cash position and providing Paragon with
significant optionality during the challenging days ahead."
Total revenues for the second quarter of 2015 were $393.2 million compared to $430.6 million in the first quarter of 2015.
Paragon reported utilization for its marketed rig fleet, which
excludes one stacked floater, as 69 percent for the second quarter
of 2015, as compared to 74 percent in the first quarter of 2015.
Average daily revenues decreased three percent in the second
quarter of 2015 to $149,000 per rig
compared to the previous quarter average of $152,000 per rig. Contract drilling operating
costs declined in the second quarter to $197.0 million compared to $225.1 million in the first quarter of 2015.
Net cash from operating activities was $96.6 million in the second quarter of 2015 as
compared to $210.4 million for the
first quarter of 2015. Capital expenditures in the second
quarter totaled $62.4 million. At
June 30, 2015, liquidity, defined as cash and cash equivalents
plus availability under the company's revolving credit facility,
totaled $454.9 million while our
leverage ratio, the ratio of the company's net debt to trailing
twelve months EBITDA, as defined in the company's revolving credit
facility, was 2.6 at June 30, 2015.
On July 24, 2015 the company
closed a sale-leaseback transaction in connection with
Prospector 1 and Prospector 5. Net of fees and
expenses, the company received proceeds of approximately
$292.0 million of which $23.0 million is required to be maintained in
certain restricted accounts, leaving the company with available
proceeds of approximately $269.0
million. The company's cash and cash equivalents as of
June 30, 2015 adjusted for the
available funds from the sale-leaseback transaction plus
availability under the company's revolving credit facility, results
in a pro forma liquidity of $723.9
million.
Operating Highlights
Paragon's total contract backlog at June 30, 2015 was an
estimated $1.6 billion compared to
$1.9 billion at March 31, 2015.
Utilization of Paragon's marketed floating rig fleet was 100
percent in the second quarter and in the first quarter of 2015.
Average daily revenues for Paragon's floating rig fleet decreased
seven percent to $258,000 per rig in
the second quarter of 2015 from $277,000 per rig in the first quarter of
2015.
Second quarter 2015 utilization of Paragon's marketed jackup rig
fleet decreased to 64 percent compared to the 71 percent
utilization achieved during the first quarter of 2015. Average
daily revenues for Paragon's jackup fleet during the second quarter
declined by two percent to $124,000
per rig from $127,000 per rig during
the first quarter of 2015.
At the end of the second quarter of 2015, an estimated 57
percent of the marketed rig operating days were committed for 2015,
including 87 percent and 52 percent of the floating and jackup rig
days, respectively. The calculations for committed operating days
exclude available days related to one floating unit that is
stacked.
During the quarter, Paragon added approximately $89.9 million in backlog related primarily to
previously disclosed new contracts and extensions in India, the Middle
East and West Africa. In
India, the Paragon MDS1
received a contract extension from mid-April
2015 to mid-August 2015 at a
dayrate of $97,000. In the
Middle East, the Paragon
L784 received a contract award from early June 2015 to early June
2018, at a dayrate of $88,000
from early June 2015 to early
June 2016 and $95,000 from early June
2016 to early June 2018. In
West Africa, the Paragon
M826 received a new contract from mid-August 2015 to mid-December 2015 at a dayrate of $105,000.
In addition, Paragon added approximately $200.0 million in backlog related to contracts
and extensions announced in its July 13,
2015 and August 10, 2015 Fleet
Status Reports. In the Middle
East, the Paragon B152 received a contract extension
from late November 2015 to late
November 2017 at a rate of
$81,000 while the Dhabi II
received a contract extension from mid-July
2015 to mid-July 2017 at a
dayrate of $76,000. In the North Sea,
the Paragon C461 received a contract extension from
mid-November 2015 to mid-November 2017 at a dayrate of $113,000. The Paragon C20051 received a
contract extension from early December
2015 to late May 2016 at
dayrates between $125,000 and
$135,000. In addition, we agreed to a backlog swap between
the Paragon C462 and Paragon C463 and received a
contract extension from late December
2015 to early March 2016 on
the Paragon C463 at a dayrate of $130,000.
Outlook
Mr. Stilley concluded, "As we anticipated, the offshore drilling
environment has deteriorated further since the quarter ended and
there is no improvement on the near-term horizon, particularly in
the floating rig market segment where there is an oversupply of
assets and very little demand. The shallow water segment has
worsened as well and also faces supply challenges, though we see
few speculative newbuild jackups coming to market and securing
contracts. In fact, Paragon's low-cost, high-quality focus
has enabled us to win work in the few regions where there has been
demand. Our cash position is strong and we continue to reduce costs
aggressively as we do not expect a quick recovery in our
markets."
About Paragon Offshore
Paragon is a global provider of offshore drilling rigs.
Paragon's operated fleet includes 34 jackups, including two high
specification heavy duty/harsh environment jackups, and six
floaters (four drillships and two semisubmersibles). 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 annual report on Form 10-K for the
fiscal year ended December 31, 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 second quarter 2015 results on Thursday,
August 13, 2015, at 8:00 a.m.
U.S. Central Time. The teleconference can be accessed from the U.S.
and Canada by dialing
1-888-771-4371, or internationally by dialing 1-847-585-4405, and
using access code: 40293273. 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
Thursday, August 13, 2015, beginning
at approximately 12:00 p.m. U.S.
Central Time, through Thursday, August 27,
2015, ending at approximately 11:00
p.m. U.S. Central 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: 40293273#. 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
|
PARAGON OFFSHORE
plc CONSOLIDATED AND COMBINED STATEMENTS OF
INCOME (In thousands, except per share amounts)
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Operating
revenues
|
|
|
|
|
|
|
|
|
Contract drilling
services
|
|
$
|
363,089
|
|
$
|
462,334
|
|
$
|
762,908
|
|
$
|
954,297
|
Labor contract
drilling services
|
|
7,206
|
|
8,146
|
|
14,371
|
|
16,357
|
Reimbursables and
other
|
|
22,949
|
|
8,477
|
|
46,613
|
|
22,893
|
|
|
393,244
|
|
478,957
|
|
823,892
|
|
993,547
|
Operating costs
and expenses
|
|
|
|
|
|
|
|
|
Contract drilling
services
|
|
196,969
|
|
222,317
|
|
422,074
|
|
448,780
|
Labor contract
drilling services
|
|
5,681
|
|
6,223
|
|
11,294
|
|
12,436
|
Reimbursables
|
|
18,678
|
|
5,224
|
|
38,656
|
|
15,850
|
Depreciation and
amortization
|
|
94,673
|
|
112,536
|
|
184,748
|
|
223,120
|
General and
administrative
|
|
13,737
|
|
12,683
|
|
29,101
|
|
25,928
|
Loss on
impairment
|
|
1,701
|
|
—
|
|
1,701
|
|
—
|
(Gain) loss on
disposal of assets, net
|
|
4,078
|
|
—
|
|
(12,717)
|
|
—
|
(Gain) on repurchase
of long-term debt
|
|
—
|
|
—
|
|
(4,345)
|
|
—
|
|
|
335,517
|
|
358,983
|
|
670,512
|
|
726,114
|
Operating
income
|
|
57,727
|
|
119,974
|
|
153,380
|
|
267,433
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Interest expense, net
of amount capitalized
|
|
(29,042)
|
|
(2,972)
|
|
(59,237)
|
|
(6,272)
|
Interest income and
other, net
|
|
169
|
|
338
|
|
2,434
|
|
525
|
Income before
income taxes
|
|
28,854
|
|
117,340
|
|
96,577
|
|
261,686
|
Income tax benefit
(provision)
|
|
18,477
|
|
(22,292)
|
|
11,912
|
|
(42,075)
|
Net
income
|
|
$
|
47,331
|
|
$
|
95,048
|
|
$
|
108,489
|
|
$
|
219,611
|
Net income
attributable to non-controlling interest
|
|
—
|
|
—
|
|
(31)
|
|
—
|
Net income
attributable to Paragon Offshore
|
|
$
|
47,331
|
|
$
|
95,048
|
|
$
|
108,458
|
|
$
|
219,611
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
0.51
|
|
$
|
1.12
|
|
$
|
1.19
|
|
$
|
2.59
|
PARAGON OFFSHORE
plc
CONSOLIDATED
BALANCE SHEETS
(In
thousands)
(Unaudited)
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2015
|
|
2014
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
112,359
|
|
$
|
56,772
|
Restricted
cash
|
|
—
|
|
12,502
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
356,132
|
|
539,376
|
Prepaid and other
current assets
|
|
99,531
|
|
104,644
|
Total current
assets
|
|
568,022
|
|
713,294
|
|
|
|
|
|
Property and
equipment, net
|
|
2,318,460
|
|
2,410,360
|
Other
assets
|
|
138,365
|
|
129,735
|
Total
assets
|
|
$
|
3,024,847
|
|
$
|
3,253,389
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Current maturities of
long-term debt
|
|
$
|
6,500
|
|
$
|
272,166
|
Accounts
payable
|
|
131,370
|
|
160,874
|
Accrued payroll and
related costs
|
|
50,868
|
|
81,416
|
Other current
liabilities
|
|
160,545
|
|
207,838
|
Total current
liabilities
|
|
349,283
|
|
722,294
|
|
|
|
|
|
Long-term
debt
|
|
1,984,421
|
|
1,888,439
|
Deferred income
taxes
|
|
39,034
|
|
58,497
|
Other
liabilities
|
|
53,945
|
|
89,910
|
Total
liabilities
|
|
2,426,683
|
|
2,759,140
|
|
|
|
|
|
Total
shareholders' equity
|
|
598,164
|
|
491,608
|
Non-controlling
interest
|
|
—
|
|
2,641
|
Total
equity
|
|
598,164
|
|
494,249
|
Total liabilities
and equity
|
|
$
|
3,024,847
|
|
$
|
3,253,389
|
PARAGON OFFSHORE
plc
CONSOLIDATED AND
COMBINED STATEMENTS OF CASH FLOWS
(In
thousands)
(Unaudited)
|
|
|
|
Six Months
Ended
|
|
|
June
30,
|
|
|
2015
|
|
2014
|
Cash flows from
operating activities
|
|
|
|
|
Net income
|
|
$
|
108,489
|
|
$
|
219,611
|
Adjustments to
reconcile net income to net cash from operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
184,748
|
|
223,120
|
Loss on
impairment
|
|
1,701
|
|
—
|
Gain on disposal of
assets, net
|
|
(12,717)
|
|
—
|
Gain on repurchase of
long-term debt
|
|
(4,345)
|
|
—
|
Other changes in
operating activities
|
|
29,144
|
|
(37,043)
|
Net cash provided by
operating activities
|
|
307,020
|
|
405,688
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
Capital
expenditures
|
|
(113,071)
|
|
(110,687)
|
Proceeds from sale of
assets
|
|
29,316
|
|
6,570
|
Acquisition of
Prospector Offshore Drilling S.A. non-controlling
interest
|
|
(2,185)
|
|
—
|
Change in restricted
cash
|
|
12,502
|
|
—
|
Change in accrued
capital expenditures
|
|
(12,533)
|
|
13,594
|
Net cash used in
investing activities
|
|
(85,971)
|
|
(90,523)
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
Net change in
borrowings on Predecessor bank credit facilities
|
|
—
|
|
707,472
|
Net change in
borrowings outstanding on Revolving Credit Facility
|
|
211,000
|
|
—
|
Repayment of Term
Loan Facility
|
|
(3,250)
|
|
—
|
Repayment of
Prospector Senior Credit Facility
|
|
(265,666)
|
|
—
|
Repayment of
Prospector Bonds
|
|
(101,000)
|
|
—
|
Purchase of Senior
Notes
|
|
(6,546)
|
|
—
|
Debt issuance
costs
|
|
—
|
|
(386)
|
Net transfers
to parent
|
|
—
|
|
(1,026,144)
|
Net cash used in
financing activities
|
|
(165,462)
|
|
(319,058)
|
Net change in cash
and cash equivalents
|
|
55,587
|
|
(3,893)
|
Cash and cash
equivalents, beginning of period
|
|
56,772
|
|
36,581
|
Cash and cash
equivalents, end of period
|
|
$
|
112,359
|
|
$
|
32,688
|
PARAGON OFFSHORE
plc
OPERATIONAL
INFORMATION
(Unaudited)
|
|
|
|
As
Reported
|
|
Rigs Retained or
Sold by Noble
|
|
As
Adjusted
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
March
31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2015
|
|
2014
|
|
2015
|
|
2015
|
|
2014
|
|
2015
|
Rig fleet
operating statistics (1)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jackups:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
64%
|
|
76%
|
|
71%
|
|
n/a
|
|
50%
|
|
n/a
|
|
64%
|
|
78%
|
|
71%
|
Marketed Utilization
(3)
|
|
64%
|
|
78%
|
|
71%
|
|
n/a
|
|
50%
|
|
n/a
|
|
64%
|
|
80%
|
|
71%
|
Operating
Days
|
|
1,989
|
|
2,492
|
|
2,174
|
|
n/a
|
|
91
|
|
n/a
|
|
1,989
|
|
2,401
|
|
2,174
|
Average
Dayrate
|
|
$
|
123,556
|
|
$
|
113,125
|
|
$
|
126,646
|
|
n/a
|
|
$
|
98,625
|
|
n/a
|
|
$
|
123,556
|
|
$
|
113,675
|
|
$
|
126,646
|
Floaters:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
83%
|
|
78%
|
|
83%
|
|
n/a
|
|
100%
|
|
n/a
|
|
83%
|
|
75%
|
|
83%
|
Marketed Utilization
(3)
|
|
100%
|
|
100%
|
|
100%
|
|
n/a
|
|
100%
|
|
n/a
|
|
100%
|
|
100%
|
|
100%
|
Operating
Days
|
|
455
|
|
637
|
|
450
|
|
n/a
|
|
91
|
|
n/a
|
|
455
|
|
546
|
|
450
|
Average
Dayrate
|
|
$
|
257,764
|
|
$
|
283,221
|
|
$
|
276,560
|
|
n/a
|
|
$
|
355,174
|
|
n/a
|
|
$
|
257,764
|
|
$
|
271,229
|
|
$
|
276,560
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Rig
Utilization
|
|
67%
|
|
76%
|
|
73%
|
|
n/a
|
|
67%
|
|
n/a
|
|
67%
|
|
75%
|
|
73%
|
Marketed Utilization
(3)
|
|
69%
|
|
82%
|
|
74%
|
|
n/a
|
|
67%
|
|
n/a
|
|
69%
|
|
83%
|
|
74%
|
Operating
Days
|
|
2,444
|
|
3,129
|
|
2,624
|
|
n/a
|
|
182
|
|
n/a
|
|
2,444
|
|
2,947
|
|
2,624
|
Average
Dayrate
|
|
$
|
148,537
|
|
$
|
147,752
|
|
$
|
152,353
|
|
n/a
|
|
$
|
226,899
|
|
n/a
|
|
$
|
148,537
|
|
$
|
142,864
|
|
$
|
152,353
|
|
|
(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)
|
Amounts exclude the
Paragon FPSO1.
|
(3)
|
Marketed utilization
excludes the impact of Paragon cold-stacked rigs for the current
quarter.
|
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
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Allocation of net
income
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
|
|
|
|
|
|
Net income
attributable to Paragon Offshore
|
|
$
|
47,331
|
|
$
|
95,048
|
|
$
|
108,458
|
|
$
|
219,611
|
Earnings allocated to
unvested share-based payment awards (1)
|
|
(3,532)
|
|
—
|
|
(6,611)
|
|
—
|
Net income to
ordinary shareholders - basic and diluted
|
|
$
|
43,799
|
|
$
|
95,048
|
|
$
|
101,847
|
|
$
|
219,611
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding - basic and diluted
|
|
85,836
|
|
84,753
|
|
85,549
|
|
84,753
|
|
|
|
|
|
|
|
|
|
Weighted average
unvested share-based payment awards (1)
|
|
6,922
|
|
—
|
|
5,553
|
|
—
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
0.51
|
|
$
|
1.12
|
|
$
|
1.19
|
|
$
|
2.59
|
|
|
(1)
|
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 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 table
sets forth the reconciliation of adjusted net income (non-GAAP) to
net income:
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Paragon Offshore
|
|
$
|
47,331
|
|
$
|
95,048
|
|
$ 108,458
|
|
$ 219,611
|
Adjustments:
|
|
|
|
|
|
|
|
|
(Gain) on repurchase
of long-term debt
|
|
—
|
|
—
|
|
(4,345)
|
|
—
|
(Gain) loss on
disposal of assets, net
|
|
4,078
|
|
—
|
|
(12,717)
|
|
—
|
Loss on
impairment
|
|
1,701
|
|
—
|
|
1,701
|
|
|
Adjusted net
income
|
|
$
|
53,110
|
|
$
|
95,048
|
|
$
|
93,097
|
|
$
|
219,611
|
|
|
|
|
|
|
|
|
|
Allocation of
adjusted net income
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
|
|
|
|
|
|
Adjusted net
income
|
|
$
|
53,110
|
|
$
|
95,048
|
|
$
|
93,097
|
|
$
|
219,611
|
Earnings allocated to
unvested share-based payment awards (1)
|
|
(3,963)
|
|
—
|
|
(5,675)
|
|
—
|
Adjusted net
income to ordinary shareholders - basic and diluted
|
|
$
|
49,147
|
|
$
|
95,048
|
|
$
|
87,422
|
|
$
|
219,611
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding - basic and diluted
|
|
85,836
|
|
84,753
|
|
85,549
|
|
84,753
|
|
|
|
|
|
|
|
|
|
Weighted average
unvested share-based payment awards (1)
|
|
6,922
|
|
—
|
|
5,553
|
|
—
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
per share
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
0.57
|
|
$
|
1.12
|
|
$
|
1.02
|
|
$
|
2.59
|
|
(1)
|
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 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 (Cont'd)
(In
thousands)
(Unaudited)
|
|
|
|
As
Reported
|
|
Rigs Retained or
Sold by Noble
|
|
As
Adjusted
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
March
31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2015
|
|
2014
|
|
2015
|
|
2015
|
|
2014
|
|
2015
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
services
|
|
$
|
363,089
|
|
$
|
462,334
|
|
$
|
399,819
|
|
n/a
|
|
$
|
41,302
|
|
n/a
|
|
$
|
363,089
|
|
$
|
421,032
|
|
$
|
399,819
|
Labor contract
drilling services
|
|
7,206
|
|
8,146
|
|
7,165
|
|
n/a
|
|
1,079
|
|
n/a
|
|
7,206
|
|
7,067
|
|
7,165
|
Reimbursables and
other
|
|
22,949
|
|
8,477
|
|
23,664
|
|
n/a
|
|
—
|
|
n/a
|
|
22,949
|
|
8,477
|
|
23,664
|
|
|
393,244
|
|
478,957
|
|
430,648
|
|
n/a
|
|
42,381
|
|
n/a
|
|
393,244
|
|
436,576
|
|
430,648
|
Operating costs
and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
services
|
|
196,969
|
|
222,317
|
|
225,105
|
|
n/a
|
|
16,966
|
|
n/a
|
|
196,969
|
|
205,351
|
|
225,105
|
Labor contract
drilling services
|
|
5,681
|
|
6,223
|
|
5,613
|
|
n/a
|
|
—
|
|
n/a
|
|
5,681
|
|
6,223
|
|
5,613
|
Reimbursables
|
|
18,678
|
|
5,224
|
|
19,978
|
|
n/a
|
|
496
|
|
n/a
|
|
18,678
|
|
4,728
|
|
19,978
|
Depreciation and
amortization
|
|
94,673
|
|
112,536
|
|
90,075
|
|
n/a
|
|
11,256
|
|
n/a
|
|
94,673
|
|
101,280
|
|
90,075
|
General and
administrative
|
|
13,737
|
|
12,683
|
|
15,364
|
|
n/a
|
|
1,144
|
|
n/a
|
|
13,737
|
|
11,539
|
|
15,364
|
Loss on
impairment
|
|
1,701
|
|
—
|
|
—
|
|
n/a
|
|
—
|
|
n/a
|
|
1,701
|
|
—
|
|
—
|
(Gain) loss on
disposal of assets, net
|
|
4,078
|
|
—
|
|
(16,795)
|
|
n/a
|
|
—
|
|
n/a
|
|
4,078
|
|
—
|
|
(16,795)
|
(Gain) on repurchase
of long-term debt
|
|
—
|
|
—
|
|
(4,345)
|
|
n/a
|
|
—
|
|
n/a
|
|
—
|
|
—
|
|
(4,345)
|
|
|
335,517
|
|
358,983
|
|
334,995
|
|
n/a
|
|
29,862
|
|
n/a
|
|
335,517
|
|
329,121
|
|
334,995
|
Operating
income
|
|
57,727
|
|
119,974
|
|
95,653
|
|
n/a
|
|
12,519
|
|
n/a
|
|
57,727
|
|
107,455
|
|
95,653
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of amount capitalized
|
|
(29,042)
|
|
(2,972)
|
|
(30,195)
|
|
n/a
|
|
—
|
|
n/a
|
|
(29,042)
|
|
(2,972)
|
|
(30,195)
|
Interest income and
other, net
|
|
169
|
|
338
|
|
2,265
|
|
n/a
|
|
—
|
|
n/a
|
|
169
|
|
338
|
|
2,265
|
Income before
income taxes
|
|
28,854
|
|
117,340
|
|
67,723
|
|
n/a
|
|
12,519
|
|
n/a
|
|
28,854
|
|
104,821
|
|
67,723
|
Income tax benefit
(provision)
|
|
18,477
|
|
(22,292)
|
|
(6,565)
|
|
n/a
|
|
(1,336)
|
|
n/a
|
|
18,477
|
|
(20,956)
|
|
(6,565)
|
Net
income
|
|
$
|
47,331
|
|
$
|
95,048
|
|
$
|
61,158
|
|
n/a
|
|
$
|
11,183
|
|
n/a
|
|
$
|
47,331
|
|
$
|
83,865
|
|
$
|
61,158
|
Net income
attributable to non-controlling interests
|
|
—
|
|
—
|
|
(31)
|
|
n/a
|
|
—
|
|
n/a
|
|
—
|
|
—
|
|
(31)
|
Net income
attributable to Paragon Offshore
|
|
$
|
47,331
|
|
$
|
95,048
|
|
$
|
61,127
|
|
n/a
|
|
$
|
11,183
|
|
n/a
|
|
$
|
47,331
|
|
$
|
83,865
|
|
$
|
61,127
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
94,673
|
|
101,280
|
|
90,075
|
Loss on
impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,701
|
|
—
|
|
—
|
(Gain) loss on
disposal of assets, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,078
|
|
—
|
|
(16,795)
|
(Gain) on
repurchase of long-term debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
—
|
|
(4,345)
|
Interest
expense, net of amount capitalized
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29,042
|
|
2,972
|
|
30,195
|
Income tax
(benefit) provision
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(18,477)
|
|
20,956
|
|
6,565
|
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
158,348
|
|
$
|
209,073
|
|
$
|
166,822
|
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visit:http://www.prnewswire.com/news-releases/paragon-offshore-reports-second-quarter-2015-results-300127788.html
SOURCE Paragon Offshore plc