(1) | Adjusted EBITDA is a non-GAAP financial measure. See the reconciliation and table of net income/(loss) to EBITDA and Adjusted EBITDA later in this release for more information on non-GAAP financial measures. |
PARKER DRILLING COMPANY AND SUBSIDIARIES | ||||||||||
CONSOLIDATED CONDENSED BALANCE SHEETS | ||||||||||
(Dollars in Thousands) | ||||||||||
Successor | Predecessor | |||||||||
September 30, 2019 | December 31, 2018 | |||||||||
(Unaudited) | ||||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ | 101,106 | $ | 48,602 | ||||||
Restricted cash | — | 10,389 | ||||||||
Accounts and notes receivable, net of allowance for bad debts | 167,236 | 136,437 | ||||||||
Rig materials and supplies | 22,367 | 36,245 | ||||||||
Other current assets | 28,380 | 35,231 | ||||||||
Total current assets | 319,089 | 266,904 | ||||||||
Property, plant and equipment, net of accumulated depreciation | 297,213 | 534,371 | ||||||||
Intangible assets, net | 15,117 | 4,821 | ||||||||
Deferred income taxes | 4,608 | 2,143 | ||||||||
Other non-current assets | 31,630 | 20,175 | ||||||||
Total assets | $ | 667,657 | $ | 828,414 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
Current liabilities: | ||||||||||
Debtor in possession financing | $ | — | $ | 10,000 | ||||||
Accounts payable and accrued liabilities | 107,638 | 75,063 | ||||||||
Accrued income taxes | 6,352 | 3,385 | ||||||||
Total current liabilities | 113,990 | 88,448 | ||||||||
Long-term debt | 177,032 | — | ||||||||
Other long-term liabilities | 15,328 | 11,544 | ||||||||
Long-term deferred tax liability | 6,491 | 510 | ||||||||
Commitments and contingencies | ||||||||||
Total liabilities not subject to compromise | 312,841 | 100,502 | ||||||||
Liabilities subject to compromise | — | 600,996 | ||||||||
Total liabilities | 312,841 | 701,498 | ||||||||
Stockholders' equity: | ||||||||||
Predecessor preferred stock | — | 500 | ||||||||
Predecessor common stock | — | 1,398 | ||||||||
Predecessor capital in excess of par value | — | 766,347 | ||||||||
Predecessor accumulated other comprehensive income (loss) | — | (6,879) | ||||||||
Successor common stock | 150 | — | ||||||||
Successor capital in excess of par value | 345,831 | — | ||||||||
Successor accumulated other comprehensive income (loss) | 205 | — | ||||||||
Retained earnings (accumulated deficit) | 8,630 | (634,450) | ||||||||
Total stockholders’ equity | 354,816 | 126,916 | ||||||||
Total liabilities and stockholders’ equity | $ | 667,657 | $ | 828,414 |
PARKER DRILLING COMPANY AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Dollars in Thousands, Except Per Share Data) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Successor | Predecessor | |||||||||||||||
Three Months Ended September 30, | Three Months Ended June 30, | Three Months Ended September 30, | ||||||||||||||
2019 | 2019 | 2018 | ||||||||||||||
Revenues | $ | 160,083 | $ | 156,031 | $ | 123,395 | ||||||||||
Expenses: | ||||||||||||||||
Operating expenses | 117,486 | 112,649 | 93,943 | |||||||||||||
Depreciation and amortization | 20,329 | 20,391 | 27,520 | |||||||||||||
137,815 | 133,040 | 121,463 | ||||||||||||||
Total operating gross margin | 22,268 | 22,991 | 1,932 | |||||||||||||
General and administrative expense | (5,983) | (5,610) | (14,495) | |||||||||||||
Loss on impairment | — | — | (43,990) | |||||||||||||
Gain (loss) on disposition of assets, net | (92) | (53) | 9 | |||||||||||||
Reorganization items | (211) | (962) | — | |||||||||||||
Total operating income (loss) | 15,982 | 16,366 | (56,544) | |||||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (7,118) | (7,663) | (11,350) | |||||||||||||
Interest income | 362 | 374 | 23 | |||||||||||||
Other | (258) | (644) | (709) | |||||||||||||
Total other income (expense) | (7,014) | (7,933) | (12,036) | |||||||||||||
Income (loss) before income taxes | 8,968 | 8,433 | (68,580) | |||||||||||||
Income tax expense | 4,979 | 3,792 | 2,371 | |||||||||||||
Net income (loss) | 3,989 | 4,641 | (70,951) | |||||||||||||
Less: Predecessor preferred stock dividend | — | — | 906 | |||||||||||||
Net income (loss) available to common stockholders | $ | 3,989 | $ | 4,641 | $ | (71,857) | ||||||||||
Basic earnings (loss) per common share: | $ | 0.27 | $ | 0.31 | $ | (7.70) | ||||||||||
Diluted earnings (loss) per common share: | $ | 0.27 | $ | 0.31 | $ | (7.70) | ||||||||||
Number of common shares used in computing earnings per share: | ||||||||||||||||
Basic | 15,044,739 | 15,044,739 | 9,334,390 | |||||||||||||
Diluted | 15,044,739 | 15,044,739 | 9,334,390 |
PARKER DRILLING COMPANY AND SUBSIDIARIES | |||||||||||||||
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | |||||||||||||||
(Dollars in Thousands, Except Per Share Data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Successor | Predecessor | ||||||||||||||
Six Months Ended September 30, | Three Months Ended March 31, | Nine Months Ended September 30, | |||||||||||||
2019 | 2019 | 2018 | |||||||||||||
Revenues | $ | 316,114 | $ | 157,397 | $ | 351,673 | |||||||||
Expenses: | |||||||||||||||
Operating expenses | 230,135 | 120,871 | 277,111 | ||||||||||||
Depreciation and amortization | 40,720 | 25,102 | 83,205 | ||||||||||||
270,855 | 145,973 | 360,316 | |||||||||||||
Total operating gross margin | 45,259 | 11,424 | (8,643) | ||||||||||||
General and administrative expense | (11,593) | (8,147) | (28,984) | ||||||||||||
Loss on impairment | — | — | (43,990) | ||||||||||||
Gain (loss) on disposition of assets, net | (145) | 384 | (126) | ||||||||||||
Reorganization items | (1,173) | (92,977) | — | ||||||||||||
Total operating income (loss) | 32,348 | (89,316) | (81,743) | ||||||||||||
Other income (expense): | |||||||||||||||
Interest expense | (14,781) | (274) | (33,787) | ||||||||||||
Interest income | 736 | 8 | 76 | ||||||||||||
Other | (902) | (10) | (1,609) | ||||||||||||
Total other income (expense) | (14,947) | (276) | (35,320) | ||||||||||||
Income (loss) before income taxes | 17,401 | (89,592) | (117,063) | ||||||||||||
Income tax expense | 8,771 | 656 | 5,561 | ||||||||||||
Net income (loss) | 8,630 | (90,248) | (122,624) | ||||||||||||
Less: Predecessor preferred stock dividend | — | — | 2,719 | ||||||||||||
Net income (loss) available to common stockholders | $ | 8,630 | $ | (90,248) | $ | (125,343) | |||||||||
Basic earnings (loss) per common share: | $ | 0.57 | $ | (9.63) | $ | (13.49) | |||||||||
Diluted earnings (loss) per common share: | $ | 0.57 | $ | (9.63) | $ | (13.49) | |||||||||
Number of common shares used in computing earnings per share: | |||||||||||||||
Basic | 15,044,739 | 9,368,322 | 9,292,858 | ||||||||||||
Diluted | 15,044,739 | 9,368,322 | 9,292,858 |
PARKER DRILLING COMPANY AND SUBSIDIARIES | ||||||||||||||
SELECTED FINANCIAL DATA | ||||||||||||||
(Dollars in Thousands) | ||||||||||||||
(Unaudited) | ||||||||||||||
Successor | Predecessor | |||||||||||||
Three Months Ended September 30, | Three Months Ended June 30, | Three Months Ended September 30, | ||||||||||||
2019 | 2019 | 2018 | ||||||||||||
Revenues: | ||||||||||||||
U.S. rental tools | $ | 49,256 | $ | 52,936 | $ | 50,944 | ||||||||
International rental tools | 24,067 | 22,155 | 20,151 | |||||||||||
Total rental tools services | 73,323 | 75,091 | 71,095 | |||||||||||
U.S. (lower 48) drilling | 14,487 | 12,479 | 4,530 | |||||||||||
International and Alaska drilling | 72,273 | 68,461 | 47,770 | |||||||||||
Total drilling services | 86,760 | 80,940 | 52,300 | |||||||||||
Total revenues | 160,083 | 156,031 | 123,395 | |||||||||||
Operating expenses: | ||||||||||||||
U.S. rental tools | 25,513 | 25,267 | 21,949 | |||||||||||
International rental tools | 20,243 | 19,224 | 18,773 | |||||||||||
Total rental tools services | 45,756 | 44,491 | 40,722 | |||||||||||
U.S. (lower 48) drilling | 10,549 | 9,923 | 5,701 | |||||||||||
International and Alaska drilling | 61,181 | 58,235 | 47,520 | |||||||||||
Total drilling services | 71,730 | 68,158 | 53,221 | |||||||||||
Total operating expenses | 117,486 | 112,649 | 93,943 | |||||||||||
Operating gross margin, excluding depreciation and amortization: | ||||||||||||||
U.S. rental tools | 23,743 | 27,669 | 28,995 | |||||||||||
International rental tools | 3,824 | 2,931 | 1,378 | |||||||||||
Total rental tools services | 27,567 | 30,600 | 30,373 | |||||||||||
U.S. (lower 48) drilling | 3,938 | 2,556 | (1,171) | |||||||||||
International and Alaska drilling | 11,092 | 10,226 | 250 | |||||||||||
Total drilling services | 15,030 | 12,782 | (921) | |||||||||||
Total operating gross margin, excluding depreciation and amortization | 42,597 | 43,382 | 29,452 | |||||||||||
Depreciation and amortization | (20,329) | (20,391) | (27,520) | |||||||||||
Total operating gross margin | $ | 22,268 | $ | 22,991 | $ | 1,932 |
PARKER DRILLING COMPANY AND SUBSIDIARIES | ||||||||||||||||||||||||||
ADJUSTED EBITDA | ||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||
September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | ||||||||||||||||||||||
Net income (loss) available to common stockholders | $ | 3,989 | $ | 4,641 | $ | (90,248) | $ | (43,073) | $ | (71,857) | ||||||||||||||||
Interest expense | 7,118 | 7,663 | 274 | 8,778 | 11,350 | |||||||||||||||||||||
Income tax expense | 4,979 | 3,792 | 656 | 2,235 | 2,371 | |||||||||||||||||||||
Depreciation and amortization | 20,329 | 20,391 | 25,102 | 24,340 | 27,520 | |||||||||||||||||||||
Predecessor preferred stock dividend | — | — | — | — | 906 | |||||||||||||||||||||
EBITDA | 36,415 | 36,487 | (64,216) | (7,720) | (29,710) | |||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||
Loss on impairment | — | — | — | 6,708 | 43,990 | |||||||||||||||||||||
(Gain) loss on disposition of assets, net | 92 | 53 | (384) | 1,598 | (9) | |||||||||||||||||||||
Pre-petition restructuring charges (1) | — | — | — | 11,411 | 7,724 | |||||||||||||||||||||
Reorganization items | 211 | 962 | 92,977 | 9,789 | — | |||||||||||||||||||||
Interest income | (362) | (374) | (8) | (15) | (23) | |||||||||||||||||||||
Other | 258 | 644 | 10 | 414 | 709 | |||||||||||||||||||||
Adjusted EBITDA (1) (2) | $ | 36,614 | $ | 37,772 | $ | 28,379 | $ | 22,185 | $ | 22,681 |
(1) | Pre-petition restructuring charges have been allocated to the respective period in which the expense was incurred. Accordingly adjusted EBITDA will differ from what was reported previously. |
(2) | 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. |
PARKER DRILLING COMPANY AND SUBSIDIARIES | |||||||||||||||
RECONCILIATION OF ADJUSTED EARNINGS PER SHARE | |||||||||||||||
(Dollars in Thousands, except Per Share) | |||||||||||||||
(Unaudited) | |||||||||||||||
Successor | Predecessor | ||||||||||||||
Three Months Ended September 30, | Three Months Ended June 30, | Three Months Ended September 30, | |||||||||||||
2019 | 2019 | 2018 | |||||||||||||
Net income (loss) available to common stockholders | $ | 3,989 | $ | 4,641 | $ | (71,857) | |||||||||
Diluted earnings (loss) per common share | $ | 0.27 | $ | 0.31 | $ | (7.70) | |||||||||
Adjustments: | |||||||||||||||
Loss on impairment | $ | — | $ | — | $ | 43,990 | |||||||||
Net adjustments | — | — | 43,990 | ||||||||||||
Adjusted net income (loss) available to common stockholders (1) | $ | 3,989 | $ | 4,641 | $ | (27,867) | |||||||||
Adjusted diluted earnings (loss) per common share (1) | $ | 0.27 | $ | 0.31 | $ | (2.99) |
(1) | We believe Adjusted net income (loss) available to common stockholders and Adjusted diluted earnings (loss) per common 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 stockholders and Diluted earnings (loss) per common share to be items outside of the Company’s normal operating results. Adjusted net income (loss) available to common stockholders and Adjusted diluted earnings (loss) per common 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 stockholders or Diluted earnings (loss) per common share. |