HOUSTON, Feb. 14, 2018
/PRNewswire/ -- Parker Drilling Company (NYSE: PKD) today
announced results for the fourth quarter ended December 31,
2017, including a reported net loss of $29.6
million, or a $0.21 loss per
share, on revenues of $116.3
million.
The net loss includes a non-cash pre-tax loss of $4.3 million of asset and inventory write-offs
associated with the sale of a rig in Papua New Guinea and $3.3 million of asset and inventory write-offs
associated with select international drilling assets.
Excluding these items, the adjusted net loss was $22.0 million, or a $0.16 loss per share.
Fourth quarter Adjusted EBITDA was $22.4
million.
"The year ended on a strong note, thanks in large part to the
continuing growth in our Rental Tools Services business," said
Gary Rich, the Company's Chairman,
President and CEO. "While 2017 was another challenging year
for the oilfield services sector, compared to 2016, Parker Drilling increased gross margin,
excluding depreciation and amortization, by 35 percent on
essentially flat revenue by maintaining diligent focus on cost
control. We also worked to maintain liquidity by focusing on
working capital and finished the year with $141.5 million in cash, almost $22 million greater than when we started the
year.
"I am proud of our accomplishments and believe we have
fundamentally streamlined our cost structure to best position the
company for continued strength going forward. We remain
optimistic about our future as we continue to see increasing signs
of a recovery taking hold," concluded Rich.
Fourth Quarter Review
Parker Drilling's revenues for
the 2017 fourth quarter, compared with the 2017 third quarter,
decreased 1.7 percent to $116.3
million from $118.3
million. Operating gross margin, excluding
depreciation and amortization expense (gross margin), decreased
19.2 percent to $24.4 million from
$30.2 million and gross margin as a
percentage of revenues was 21.0 percent, compared with 25.5 percent
for the prior period.
Drilling Services
For the Company's Drilling Services business, which is comprised
of the U.S. (Lower 48) Drilling and the International & Alaska
Drilling segments, fourth quarter revenues declined 7.6 percent to
$62.2 million from $67.3 million. Gross margin decreased 54.6
percent to $5.4 million from
$11.9 million and gross margin as a
percentage of revenues was 8.7 percent, compared with 17.7 percent
for the prior period. Contracted backlog was $241 million at the end of the fourth quarter
compared with $257 million at the end
of the third quarter.
U.S. (Lower 48)
Drilling
U.S. (Lower 48) Drilling segment
revenues were $1.5 million, a 66.3
percent decrease from 2017 third quarter revenues of $4.6 million. Gross margin was a
$2.7 million loss as compared with a
2017 third quarter loss of $0.5
million. The decrease in revenues and gross margin was
driven by fewer revenue days, as utilization dropped from 17% in
the third quarter to 5% in the fourth quarter.
International & Alaska
Drilling
International & Alaska
Drilling segment revenues were $60.6
million, a 3.3 percent decrease from 2017 third quarter
revenues of $62.7
million. Gross margin was $8.0 million, a 35.5 percent decrease from 2017
third quarter gross margin of $12.4
million. Gross margin as a percentage of
revenues was 13.2 percent as compared with 19.7 percent for the
2017 third quarter. The decrease in revenues was primarily
attributable to lower reimbursable revenues. Excluding
reimbursable revenues, revenues were flat as increases associated
with additional O&M activity and drilling activity in the
Kurdistan Region of Iraq were
offset by lower joint venture revenues from Kazakhstan and reduced day rates for the
Parker-owned rig in Sakhalin, which completed drilling activities
in the third quarter and went on a reduced standby rate in the
fourth quarter. The decrease in gross margin was primarily
the result of inventory and asset related write-offs of select
drilling assets and the sale of a rig in Papua New Guinea, which collectively reduced
gross margin by $3.0 million.
Rental Tools Services
For the Company's Rental Tools Services business, which is
comprised of the U.S. Rental Tools and International Rental Tools
segments, fourth quarter revenues were $54.1
million, a 6.1 percent increase from 2017 third quarter
revenues of $51.0 million.
Gross margin was $19.1 million, a 4.4
percent increase from $18.3 million
for the 2017 third quarter. Gross margin as a percentage of
revenues was 35.3 percent as compared with 35.9 percent in the 2017
third quarter.
U.S. Rental Tools
U.S. Rental tools segment revenues
were $36.3 million, compared with
$35.7 million for the 2017 third
quarter. Gross margin was $19.0
million compared with $19.6
million for the 2017 third quarter. Revenues were
essentially flat quarter-on-quarter as U.S. Land and offshore shelf
increases offset reductions in deepwater activity. Gross
margin decreased as a result of higher operating expenses and
revenue mix associated with decreased deepwater activity.
International Rental
Tools
International Rental Tools segment
revenues were $17.8 million, compared
with $15.3 million for the 2017 third
quarter. Gross margin was a gain of $11.0
thousand compared with a loss of $1.3
million for the 2017 third quarter. The increase
in revenues was primarily the result of additional activity in most
of our international markets. The improvement in gross margin
was due to a more favorable product mix as well as cost reductions
taken in the third quarter, which fully impacted the fourth
quarter.
Consolidated
General and Administrative expense decreased to $5.1 million for the 2017 fourth quarter, from
$7.0 million for the 2017 third
quarter, predominately due to incentive plan adjustments.
Capital expenditures in the fourth quarter were $9.7 million, and were $54.5 million for the year.
Credit Facility Amendment
On February 14, 2018, the Company
executed an amendment to the 2015 Secured Credit Agreement,
modifying the credit facility to an Asset-Based Lending (ABL)
structure and reducing the size of the revolver from $100 million to $80
million. The amendment eliminates the financial
maintenance covenants required in the 2015 Secured Credit Agreement
and replaces them with a liquidity covenant and a monthly borrowing
base calculation based on eligible rental equipment and eligible
domestic accounts receivable. The liquidity covenant requires the
Company to maintain a minimum of $30
million of liquidity (defined as availability under the
borrowing base and cash on hand), of which $15 million is restricted, resulting in a maximum
availability at any one time of $65
million. The amendment also allows greater flexibility to
refinance the Company's existing Senior Notes on either a secured
or unsecured basis.
Conference Call
Parker Drilling has scheduled a
conference call for 10:00 a.m. Central
Time (11:00 a.m. Eastern Time)
on Thursday, February 15, 2018, to review reported
results. You may access the call by telephone at (+1) (412)
902-0003 and asking for the 2017 Fourth Quarter Conference
Call. The call may also be accessed through the Investor
Relations section of the Company's website. A replay of the
call can be accessed on the Company's website for 12 months and
will be available by telephone through February 22, 2018, at (+1) (201) 612-7415, access
code 13675091#.
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 addressing activities, events or developments 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 rental tools utilization and rig utilization and dayrates; the
results of past capital expenditures; scheduled start-ups of rigs;
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; future
capital expenditures; expansion and growth opportunities;
acquisitions or joint ventures; asset purchases and sales;
successful negotiation and execution of contracts; scheduled
delivery of drilling rigs or rental equipment for operation; the
Company's financial position; changes in utilization or market
share; outcomes of legal proceedings; 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 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, fluctuations in oil and natural
gas prices, compliance with existing laws and changes in laws or
government regulations, the failure to realize the benefits of, and
other risks relating to, acquisitions, the risk of cost overruns,
our ability to refinance our debt and other important factors, many
of which could adversely affect market conditions, demand for our
services, and costs, and all or any one of which could cause actual
results to differ materially from those projected. For more
information, see "Risk Factors" in the Company's Annual Report
filed on Form 10-K with the Securities and Exchange Commission 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.
This news release contains non-GAAP financial measures as
defined by SEC Regulation G. A reconciliation of each such measure
to its most directly comparable U.S. Generally Accepted Accounting
Principles (GAAP) financial measure, together with an explanation
of why management believes that these non-GAAP financial measures
provide useful information to investors, is provided in the
following tables.
Company Description
Parker Drilling provides drilling
services and rental tools to the energy industry. The Company's
Drilling Services business serves operators in the inland waters of
the U.S. Gulf of Mexico utilizing
Parker Drilling's barge rig fleet
and in select U.S. and international markets and harsh-environment
regions utilizing Parker-owned and customer-owned equipment. The
Company's Rental Tools Services business supplies premium equipment
and well services to operators on land and offshore in the U.S. and
international markets. More information about Parker Drilling can be found on the Company's
website at www.parkerdrilling.com.
Contact: Jason Geach, Vice
President, Investor Relations & Corporate Development (+1)
(281) 406-2310, jason.geach@parkerdrilling.com.
PARKER DRILLING
COMPANY
|
Consolidated
Condensed Balance Sheets
|
(Dollars in
Thousands)
|
|
|
|
|
|
December 31,
2017
|
|
December 31,
2016
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
141,549
|
|
|
$
|
119,691
|
|
Accounts and Notes
Receivable, net
|
122,511
|
|
|
113,231
|
|
Rig materials and
supplies
|
31,415
|
|
|
32,354
|
|
Deferred
costs
|
3,145
|
|
|
1,436
|
|
Other current
assets
|
19,216
|
|
|
19,606
|
|
Total current
assets
|
317,836
|
|
|
286,318
|
|
|
|
|
|
Property, plant and
equipment, net
|
625,771
|
|
|
693,439
|
|
|
|
|
|
Other
assets:
|
|
|
|
Deferred income
taxes
|
1,284
|
|
|
70,309
|
|
Other
assets
|
45,388
|
|
|
53,485
|
|
Total other
assets
|
46,672
|
|
|
123,794
|
|
|
|
|
|
Total
assets
|
$
|
990,279
|
|
|
$
|
1,103,551
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable and
Accrued liabilities
|
$
|
103,676
|
|
|
$
|
102,921
|
|
Total current
liabilities
|
103,676
|
|
|
102,921
|
|
|
|
|
|
Long-term debt, net
of unamortized debt issuance costs
|
577,971
|
|
|
576,326
|
|
|
|
|
|
Long-term deferred
tax liability
|
78
|
|
|
69,333
|
|
|
|
|
|
Other long-term
liabilities
|
12,433
|
|
|
15,836
|
|
|
|
|
|
Total stockholders'
equity
|
296,121
|
|
|
339,135
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
990,279
|
|
|
$
|
1,103,551
|
|
PARKER DRILLING
COMPANY
|
Consolidated
Statement Of Operations
|
(Dollars in
Thousands, Except Per Share Data)
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Three Months Ended
December 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
|
|
|
|
|
Revenues
|
$
|
116,334
|
|
|
$
|
94,025
|
|
|
$
|
118,308
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
Operating
expenses
|
91,912
|
|
|
80,529
|
|
|
88,120
|
|
Depreciation and
amortization
|
29,122
|
|
|
33,190
|
|
|
30,067
|
|
|
121,034
|
|
|
113,719
|
|
|
118,187
|
|
Total operating gross
margin (loss)
|
(4,700)
|
|
|
(19,694)
|
|
|
121
|
|
|
|
|
|
|
|
General and
administrative expense
|
(5,100)
|
|
|
(9,132)
|
|
|
(7,033)
|
|
Provision for
reduction in carrying value of certain assets
|
(1,938)
|
|
|
—
|
|
|
—
|
|
Gain (loss) on
disposition of assets, net
|
(2,483)
|
|
|
(1,364)
|
|
|
97
|
|
Total operating
income (loss)
|
(14,221)
|
|
|
(30,190)
|
|
|
(6,815)
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
Interest
expense
|
(11,194)
|
|
|
(11,048)
|
|
|
(11,067)
|
|
Interest
income
|
84
|
|
|
10
|
|
|
128
|
|
Other
|
(326)
|
|
|
(1,409)
|
|
|
(638)
|
|
Total other income
(expense)
|
(11,436)
|
|
|
(12,447)
|
|
|
(11,577)
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
(25,657)
|
|
|
(42,637)
|
|
|
(18,392)
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
3,036
|
|
|
6,292
|
|
|
1,919
|
|
|
|
|
|
|
|
Net income
(loss)
|
(28,693)
|
|
|
(48,929)
|
|
|
(20,311)
|
|
Less: Mandatory
convertible preferred stock dividend
|
$
|
906
|
|
|
$
|
—
|
|
|
$
|
906
|
|
Net income (loss)
available to common stockholders
|
$
|
(29,599)
|
|
|
$
|
(48,929)
|
|
|
$
|
(21,217)
|
|
|
|
|
|
|
|
Earnings (loss) per
common share - Basic
|
|
|
|
|
|
Net income
(loss)
|
$
|
(0.21)
|
|
|
$
|
(0.39)
|
|
|
$
|
(0.15)
|
|
|
|
|
|
|
|
Earnings (loss) per
common share - Diluted
|
|
|
|
|
|
Net Income
(loss)
|
$
|
(0.21)
|
|
|
$
|
(0.39)
|
|
|
$
|
(0.15)
|
|
|
|
|
|
|
|
Number of common
shares used in computing earnings per share:
|
|
|
|
|
|
Basic
|
138,675,403
|
|
|
124,830,473
|
|
|
138,300,015
|
|
Diluted
|
138,675,403
|
|
|
124,830,473
|
|
|
138,300,015
|
|
PARKER DRILLING
COMPANY
|
Consolidated
Statement Of Operations
|
(Dollars in
Thousands, Except Per Share Data)
|
(Unaudited)
|
|
|
|
|
|
|
|
Year Ended December
31,
|
|
2017
|
|
2016
|
|
2015
|
|
|
|
|
|
|
Revenues
|
$
|
442,520
|
|
|
$
|
427,004
|
|
|
$
|
712,183
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
Operating
expenses
|
355,487
|
|
|
362,521
|
|
|
526,290
|
|
Depreciation and
amortization
|
122,373
|
|
|
139,795
|
|
|
156,194
|
|
|
477,860
|
|
|
502,316
|
|
|
682,484
|
|
Total operating gross
margin (loss)
|
(35,340)
|
|
|
(75,312)
|
|
|
29,699
|
|
|
|
|
|
|
|
General and
administrative expense
|
(25,676)
|
|
|
(34,332)
|
|
|
(36,190)
|
|
Provision for
reduction in carrying value of certain assets
|
(1,938)
|
|
|
—
|
|
|
(12,490)
|
|
Gain (loss) on
disposition of assets, net
|
(2,851)
|
|
|
(1,613)
|
|
|
1,643
|
|
Total operating
income (loss)
|
(65,805)
|
|
|
(111,257)
|
|
|
(17,338)
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
Interest
expense
|
(44,226)
|
|
|
(45,812)
|
|
|
(45,155)
|
|
Interest
income
|
244
|
|
|
58
|
|
|
269
|
|
Other
|
126
|
|
|
367
|
|
|
(9,747)
|
|
Total other income
(expense)
|
(43,856)
|
|
|
(45,387)
|
|
|
(54,633)
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
(109,661)
|
|
|
(156,644)
|
|
|
(71,971)
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
9,040
|
|
|
74,170
|
|
|
22,313
|
|
|
|
|
|
|
|
Net income
(loss)
|
(118,701)
|
|
|
(230,814)
|
|
|
(94,284)
|
|
Less: Net income
attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
789
|
|
Net income (loss)
attributable to controlling interest
|
$
|
(118,701)
|
|
|
$
|
(230,814)
|
|
|
$
|
(95,073)
|
|
Less: Mandatory
convertible preferred stock dividend
|
$
|
3,051
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Net income (loss)
available to common stockholders
|
$
|
(121,752)
|
|
|
$
|
(230,814)
|
|
|
$
|
(95,073)
|
|
|
|
|
|
|
|
Earnings (loss) per
common share - Basic
|
|
|
|
|
|
Net income
(loss)
|
$
|
(0.89)
|
|
|
$
|
(1.86)
|
|
|
$
|
(0.78)
|
|
|
|
|
|
|
|
Earnings (loss) per
common share - Diluted
|
|
|
|
|
|
Net Income
(loss)
|
$
|
(0.89)
|
|
|
$
|
(1.86)
|
|
|
$
|
(0.78)
|
|
|
|
|
|
|
|
Number of common
shares used in computing earnings per share:
|
|
|
|
|
|
Basic
|
136,266,843
|
|
|
124,130,004
|
|
|
122,562,187
|
|
Diluted
|
136,266,843
|
|
|
124,130,004
|
|
|
122,562,187
|
|
PARKER DRILLING
COMPANY
|
Selected Financial
Data
|
(Dollars in
Thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended December
31,
|
|
|
December
31,
|
|
September
30,
|
|
2017
|
|
2016
|
|
2015
|
|
|
2017
|
|
2016
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Drilling
Services:
|
|
|
|
|
|
|
|
|
|
|
|
U.S. (Lower 48)
Drilling
|
$
|
1,546
|
|
|
$
|
848
|
|
|
$
|
4,585
|
|
|
$
|
12,389
|
|
|
$
|
5,429
|
|
|
$
|
30,358
|
|
International &
Alaska Drilling
|
60,648
|
|
|
61,478
|
|
|
62,726
|
|
|
247,254
|
|
|
287,332
|
|
|
435,096
|
|
|
Total Drilling
Services:
|
62,194
|
|
|
62,326
|
|
|
67,311
|
|
|
259,643
|
|
|
292,761
|
|
|
465,454
|
|
Rental Tools
Services:
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Rental
Tools
|
36,324
|
|
|
16,130
|
|
|
35,677
|
|
|
121,937
|
|
|
71,613
|
|
|
141,889
|
|
International Rental
Tools
|
17,816
|
|
|
15,569
|
|
|
15,320
|
|
|
60,940
|
|
|
62,630
|
|
|
104,840
|
|
|
Total Rental Tools
Services
|
54,140
|
|
|
31,699
|
|
|
50,997
|
|
|
182,877
|
|
|
134,243
|
|
|
246,729
|
|
|
Total
revenues
|
$
|
116,334
|
|
|
$
|
94,025
|
|
|
$
|
118,308
|
|
|
$
|
442,520
|
|
|
$
|
427,004
|
|
|
$
|
712,183
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Drilling
Services:
|
|
|
|
|
|
|
|
|
|
|
|
U.S. (Lower 48)
Drilling
|
$
|
4,205
|
|
|
$
|
4,232
|
|
|
$
|
5,052
|
|
|
$
|
19,524
|
|
|
$
|
19,733
|
|
|
$
|
36,247
|
|
International &
Alaska Drilling
|
52,619
|
|
|
47,307
|
|
|
50,345
|
|
|
206,552
|
|
|
222,824
|
|
|
325,346
|
|
|
Total Drilling
Services:
|
56,824
|
|
|
51,539
|
|
|
55,397
|
|
|
226,076
|
|
|
242,557
|
|
|
361,593
|
|
Rental Tools
Services:
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Rental
Tools
|
17,283
|
|
|
12,102
|
|
|
16,086
|
|
|
62,797
|
|
|
50,216
|
|
|
77,056
|
|
International Rental
Tools
|
17,805
|
|
|
16,888
|
|
|
16,637
|
|
|
66,614
|
|
|
69,748
|
|
|
87,641
|
|
|
Total Rental Tools
Services
|
35,088
|
|
|
28,990
|
|
|
32,723
|
|
|
129,411
|
|
|
119,964
|
|
|
164,697
|
|
|
Total
operating expenses
|
$
|
91,912
|
|
|
$
|
80,529
|
|
|
$
|
88,120
|
|
|
$
|
355,487
|
|
|
$
|
362,521
|
|
|
$
|
526,290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating gross
margin (loss):
|
|
|
|
|
|
|
|
|
|
|
|
Drilling
Services:
|
|
|
|
|
|
|
|
|
|
|
|
U.S. (Lower 48)
Drilling
|
$
|
(2,659)
|
|
|
$
|
(3,384)
|
|
|
$
|
(467)
|
|
|
$
|
(7,135)
|
|
|
$
|
(14,304)
|
|
|
$
|
(5,889)
|
|
International &
Alaska Drilling
|
8,029
|
|
|
14,171
|
|
|
12,381
|
|
|
40,702
|
|
|
64,508
|
|
|
109,750
|
|
|
Total Drilling
Services
|
5,370
|
|
|
10,787
|
|
|
11,914
|
|
|
33,567
|
|
|
50,204
|
|
|
103,861
|
|
Rental Tools
Services:
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Rental
Tools
|
19,041
|
|
|
4,028
|
|
|
19,591
|
|
|
59,140
|
|
|
21,397
|
|
|
64,833
|
|
International Rental
Tools
|
11
|
|
|
(1,319)
|
|
|
(1,317)
|
|
|
(5,674)
|
|
|
(7,118)
|
|
|
17,199
|
|
|
Total Rental Tools
Services
|
19,052
|
|
|
2,709
|
|
|
18,274
|
|
|
53,466
|
|
|
14,279
|
|
|
82,032
|
|
|
Total
operating gross margin excluding
depreciation
and amortization
|
24,422
|
|
|
13,496
|
|
|
30,188
|
|
|
87,033
|
|
|
64,483
|
|
|
185,893
|
|
Depreciation and
amortization
|
(29,122)
|
|
|
(33,190)
|
|
|
(30,067)
|
|
|
(122,373)
|
|
|
(139,795)
|
|
|
(156,194)
|
|
|
Total
operating gross margin (loss)
|
$
|
(4,700)
|
|
|
$
|
(19,694)
|
|
|
$
|
121
|
|
|
$
|
(35,340)
|
|
|
$
|
(75,312)
|
|
|
$
|
29,699
|
|
PARKER DRILLING
COMPANY
|
Adjusted EBITDA
(1)
|
(Dollars in
Thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
December 31,
2017
|
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
|
December 31,
2016
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to common shareholders
|
|
$
|
(29,599)
|
|
|
$
|
(21,217)
|
|
|
$
|
(31,127)
|
|
|
$
|
(39,809)
|
|
|
$
|
(48,929)
|
|
Interest
expense
|
|
11,194
|
|
|
11,067
|
|
|
11,095
|
|
|
10,870
|
|
|
11,048
|
|
Income tax expense
(benefit)
|
|
3,036
|
|
|
1,919
|
|
|
1,743
|
|
|
2,342
|
|
|
6,292
|
|
Depreciation and
amortization
|
|
29,122
|
|
|
30,067
|
|
|
30,982
|
|
|
32,202
|
|
|
33,190
|
|
Mandatory convertible
preferred stock dividend
|
|
906
|
|
|
906
|
|
|
1,239
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
14,659
|
|
|
22,742
|
|
|
13,932
|
|
|
5,605
|
|
|
1,601
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Other (income)
expense
|
|
242
|
|
|
510
|
|
|
(582)
|
|
|
(540)
|
|
|
1,399
|
|
(Gain) loss on
disposition of assets, net
|
|
2,483
|
|
|
(97)
|
|
|
113
|
|
|
352
|
|
|
1,364
|
|
Provision for
reduction in carrying value of certain assets
|
|
1,938
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Special items
(2)
|
|
3,033
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
22,355
|
|
|
$
|
23,155
|
|
|
$
|
13,463
|
|
|
$
|
5,417
|
|
|
$
|
5,240
|
|
|
(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) Special items
include:
- For the three months
ended December 31, 2017, special items include a $3.0 million
write-off of inventory associated with select international
drilling assets. This item is recorded in operating expenses in the
Consolidated Statement Of Operations. - For the three months ended December 31, 2016,
special items include $0.9 million of net severance associated with
the departure of three executives. This item is recorded in general
and administrative expense in the Consolidated Statement Of
Operations.
|
PARKER DRILLING
COMPANY
|
Reconciliation of
Adjusted Earnings Per Share
|
(Dollars in
Thousands, Except Per Share Data)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
December
31,
|
|
September
30,
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
|
|
|
|
|
|
|
Net income (loss)
available to common shareholders
|
|
$
|
(29,599)
|
|
|
$
|
(48,929)
|
|
|
$
|
(21,217)
|
|
Income (loss) per
diluted share
|
|
$
|
(0.21)
|
|
|
$
|
(0.39)
|
|
|
$
|
(0.15)
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
(Gain) loss on
disposition of assets, net
|
|
$
|
2,588
|
|
|
—
|
|
|
—
|
|
|
Provision for
reduction in carrying value of certain assets
|
|
1,938
|
|
|
—
|
|
|
—
|
|
|
Write-off
inventory
|
|
3,033
|
|
|
—
|
|
|
—
|
|
|
Valuation
allowance
|
|
—
|
|
|
6,772
|
|
|
—
|
|
|
Special
items
|
|
—
|
|
|
876
|
|
|
—
|
|
|
Net adjustments
|
|
7,559
|
|
|
7,648
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Adjusted net
income (loss) available to common
shareholders(1)
|
|
$
|
(22,040)
|
|
|
$
|
(41,281)
|
|
|
$
|
(21,217)
|
|
Adjusted income
(loss) per diluted share(1)
|
|
$
|
(0.16)
|
|
|
$
|
(0.33)
|
|
|
$
|
(0.15)
|
|
|
(1) We believe
Adjusted net income (loss) available to common shareholders and
Adjusted income (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 income (loss) available to common shareholders
and Income (Loss) per diluted share to be items outside of the
Company's normal operating results. Adjusted net income (loss)
available to common shareholders and Adjusted income (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 income (loss) available to common shareholders or Income (loss)
per diluted share.
|
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SOURCE Parker Drilling Company