| Parent, Guarantor, Non-Guarantor Unaudited Consolidating Financial Statements (Unaudited) |
Note 19 - Parent, Guarantor, Non-Guarantor Unaudited Consolidating Financial Statements (Unaudited) Set forth on the following pages are the consolidating condensed financial statements of Parker Drilling. The Company’s 2015 Secured Credit Agreement and Senior Notes are fully and unconditionally guaranteed by substantially all of our direct and indirect domestic subsidiaries other than immaterial subsidiaries and subsidiaries generating revenues primarily outside the United States, subject to the following customary release provisions:
|
|
• |
in connection with any sale or other disposition of all or substantially all of the assets of that guarantor (including by way of merger or consolidation) to a person that is not (either before or after giving effect to such transaction) a subsidiary of the Company; |
|
|
• |
in connection with any sale of such amount of capital stock as would result in such guarantor no longer being a subsidiary to a person that is not (either before or after giving effect to such transaction) a subsidiary of the Company; |
|
|
• |
if the Company designates any restricted subsidiary that is a guarantor as an unrestricted subsidiary; |
|
|
• |
if the guarantee by a guarantor of all other indebtedness of the Company or any other guarantor is released, terminated or discharged, except by, or as a result of, payment under such guarantee; or |
|
|
• |
upon legal defeasance or covenant defeasance (satisfaction and discharge of the indenture). |
There are currently no restrictions on the ability of the restricted subsidiaries to transfer funds to Parker Drilling in the form of cash dividends, loans or advances. Parker Drilling is a holding company with no operations, other than through its subsidiaries. Separate financial statements for each guarantor company are not provided as the Company complies with the exception to Rule 3-10(f) of Regulation S-X. All guarantor subsidiaries are owned 100.0 percent by the parent company.
We are providing consolidating condensed financial information of the parent, Parker Drilling, the guarantor subsidiaries, and the non-guarantor subsidiaries as of December 31, 2018 and December 31, 2017 and for the years ended December 31, 2018, 2017, and 2016. The consolidating condensed financial statements present investments in both the consolidated and unconsolidated subsidiaries using the equity method of accounting.CONSOLIDATING CONDENSED BALANCE SHEET
(Dollars in Thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
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December 31, 2018 |
|
Parent |
|
Guarantor |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
ASSETS |
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
5,905 |
|
|
$ |
9,321 |
|
|
$ |
33,376 |
|
|
$ |
— |
|
|
$ |
48,602 |
|
Restricted cash |
10,389 |
|
|
— |
|
|
— |
|
|
— |
|
|
10,389 |
|
Accounts and notes receivable, net |
— |
|
|
48,598 |
|
|
87,839 |
|
|
— |
|
|
136,437 |
|
Rig materials and supplies |
— |
|
|
1,650 |
|
|
34,002 |
|
|
593 |
|
|
36,245 |
|
Deferred costs |
— |
|
|
975 |
|
|
3,378 |
|
|
— |
|
|
4,353 |
|
Other tax assets |
— |
|
|
— |
|
|
2,949 |
|
|
— |
|
|
2,949 |
|
Other current assets |
8,088 |
|
|
10,241 |
|
|
9,600 |
|
|
— |
|
|
27,929 |
|
Total current assets |
24,382 |
|
|
70,785 |
|
|
171,144 |
|
|
593 |
|
|
266,904 |
|
Property, plant and equipment, net |
(19 |
) |
|
369,529 |
|
|
164,861 |
|
|
— |
|
|
534,371 |
|
Intangible assets, net |
— |
|
|
4,821 |
|
|
— |
|
|
— |
|
|
4,821 |
|
Rig materials and supplies |
— |
|
|
7,036 |
|
|
5,935 |
|
|
— |
|
|
12,971 |
|
Deferred income taxes |
1,918 |
|
|
(14,806 |
) |
|
15,031 |
|
|
— |
|
|
2,143 |
|
Investment in subsidiaries and intercompany advances |
2,871,807 |
|
|
3,024,736 |
|
|
4,264,747 |
|
|
(10,161,290 |
) |
|
— |
|
Other non-current assets |
(277,183 |
) |
|
257,204 |
|
|
507,932 |
|
|
(480,749 |
) |
|
7,204 |
|
Total assets |
$ |
2,620,905 |
|
|
$ |
3,719,305 |
|
|
$ |
5,129,650 |
|
|
$ |
(10,641,446 |
) |
|
$ |
828,414 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
Current liabilities: |
|
|
|
|
|
|
|
|
|
Debtor in possession financing |
$ |
10,000 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
10,000 |
|
Accounts payable |
(200,977 |
) |
|
222,903 |
|
|
511,770 |
|
|
(494,018 |
) |
|
39,678 |
|
Accrued liabilities |
69,961 |
|
|
11,934 |
|
|
76,947 |
|
|
(123,457 |
) |
|
35,385 |
|
Accrued income taxes |
88,494 |
|
|
(67,333 |
) |
|
(17,776 |
) |
|
— |
|
|
3,385 |
|
Total current liabilities |
(32,522 |
) |
|
167,504 |
|
|
570,941 |
|
|
(617,475 |
) |
|
88,448 |
|
Other long-term liabilities |
2,867 |
|
|
4,128 |
|
|
4,549 |
|
|
— |
|
|
11,544 |
|
Long-term deferred tax liability |
— |
|
|
— |
|
|
510 |
|
|
— |
|
|
510 |
|
Intercompany payables |
1,918,709 |
|
|
1,487,904 |
|
|
2,719,884 |
|
|
(6,126,497 |
) |
|
— |
|
Total liabilities not subject to compromise |
1,889,054 |
|
|
1,659,536 |
|
|
3,295,884 |
|
|
(6,743,972 |
) |
|
100,502 |
|
Liabilities subject to compromise |
600,996 |
|
|
— |
|
|
— |
|
|
— |
|
|
600,996 |
|
Total stockholder's equity |
130,855 |
|
|
2,059,769 |
|
|
1,833,766 |
|
|
(3,897,474 |
) |
|
126,916 |
|
Total liabilities and stockholders’ equity |
$ |
2,620,905 |
|
|
$ |
3,719,305 |
|
|
$ |
5,129,650 |
|
|
$ |
(10,641,446 |
) |
|
$ |
828,414 |
|
PARKER DRILLING COMPANY AND SUBSIDIARIES (DEBTOR IN POSSESSION)
CONSOLIDATING CONDENSED BALANCE SHEET
(Dollars in Thousands)
(Unaudited)
|
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|
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December 31, 2017 |
|
Parent |
|
Guarantor |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
ASSETS |
Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
75,342 |
|
|
$ |
20,655 |
|
|
$ |
45,552 |
|
|
$ |
— |
|
|
$ |
141,549 |
|
Accounts and notes receivable, net |
— |
|
|
32,338 |
|
|
90,173 |
|
|
— |
|
|
122,511 |
|
Rig materials and supplies |
— |
|
|
(3,025 |
) |
|
34,440 |
|
|
— |
|
|
31,415 |
|
Deferred costs |
— |
|
|
17 |
|
|
3,128 |
|
|
— |
|
|
3,145 |
|
Other tax assets |
— |
|
|
— |
|
|
4,889 |
|
|
— |
|
|
4,889 |
|
Other current assets |
— |
|
|
6,345 |
|
|
7,982 |
|
|
— |
|
|
14,327 |
|
Total current assets |
75,342 |
|
|
56,330 |
|
|
186,164 |
|
|
— |
|
|
317,836 |
|
Property, plant and equipment, net |
(19 |
) |
|
429,999 |
|
|
195,791 |
|
|
— |
|
|
625,771 |
|
Goodwill |
— |
|
|
6,708 |
|
|
— |
|
|
— |
|
|
6,708 |
|
Intangible assets, net |
— |
|
|
7,128 |
|
|
— |
|
|
— |
|
|
7,128 |
|
Rig and materials and supplies |
— |
|
|
7,256 |
|
|
11,532 |
|
|
— |
|
|
18,788 |
|
Deferred income taxes |
15,144 |
|
|
(26,623 |
) |
|
12,763 |
|
|
— |
|
|
1,284 |
|
Investment in subsidiaries and intercompany advances |
2,955,050 |
|
|
2,970,220 |
|
|
3,956,747 |
|
|
(9,882,017 |
) |
|
— |
|
Other non-current assets |
(276,375 |
) |
|
257,121 |
|
|
512,870 |
|
|
(480,852 |
) |
|
12,764 |
|
Total assets |
$ |
2,769,142 |
|
|
$ |
3,708,139 |
|
|
$ |
4,875,867 |
|
|
$ |
(10,362,869 |
) |
|
$ |
990,279 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
Current liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable |
$ |
(137,047 |
) |
|
$ |
162,505 |
|
|
$ |
510,083 |
|
|
$ |
(494,018 |
) |
|
$ |
41,523 |
|
Accrued liabilities |
85,987 |
|
|
16,742 |
|
|
78,452 |
|
|
(123,458 |
) |
|
57,723 |
|
Accrued income taxes |
76,883 |
|
|
(56,870 |
) |
|
(15,583 |
) |
|
— |
|
|
4,430 |
|
Total current liabilities |
25,823 |
|
|
122,377 |
|
|
572,952 |
|
|
(617,476 |
) |
|
103,676 |
|
Long-term debt, net |
577,971 |
|
|
— |
|
|
— |
|
|
— |
|
|
577,971 |
|
Other long-term liabilities |
2,867 |
|
|
5,741 |
|
|
3,825 |
|
|
— |
|
|
12,433 |
|
Long-term deferred tax liability |
— |
|
|
— |
|
|
78 |
|
|
— |
|
|
78 |
|
Intercompany payables |
1,865,810 |
|
|
1,465,745 |
|
|
2,430,339 |
|
|
(5,761,894 |
) |
|
— |
|
Total stockholders' equity |
296,671 |
|
|
2,114,276 |
|
|
1,868,673 |
|
|
(3,983,499 |
) |
|
296,121 |
|
Total liabilities and stockholders’ equity |
$ |
2,769,142 |
|
|
$ |
3,708,139 |
|
|
$ |
4,875,867 |
|
|
$ |
(10,362,869 |
) |
|
$ |
990,279 |
|
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
(Dollars in Thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2018 |
|
Parent |
|
Guarantor |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
Revenues |
$ |
— |
|
|
$ |
204,319 |
|
|
$ |
327,266 |
|
|
$ |
(50,764 |
) |
|
$ |
480,821 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
Operating expenses |
— |
|
|
115,291 |
|
|
313,577 |
|
|
(50,764 |
) |
|
378,104 |
|
Depreciation and amortization |
— |
|
|
76,353 |
|
|
31,192 |
|
|
— |
|
|
107,545 |
|
|
— |
|
|
191,644 |
|
— |
|
344,769 |
|
— |
|
(50,764 |
) |
— |
|
485,649 |
|
Total operating gross margin (loss) |
— |
|
|
12,675 |
|
|
(17,503 |
) |
|
— |
|
|
(4,828 |
) |
General and administrative expense (1)
|
23,568 |
|
|
(47,819 |
) |
|
(294 |
) |
|
— |
|
|
(24,545 |
) |
Loss on impairment |
— |
|
|
(40,917 |
) |
|
(9,781 |
) |
|
— |
|
|
(50,698 |
) |
Gain (loss) on disposition of assets, net |
— |
|
|
(1,347 |
) |
|
(377 |
) |
|
— |
|
|
(1,724 |
) |
Pre-petition restructuring charges |
(21,820 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(21,820 |
) |
Reorganization items |
(9,789 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
— |
|
|
(9,789 |
) |
Total operating income (loss) |
(8,041 |
) |
|
(77,408 |
) |
|
(27,955 |
) |
|
— |
|
|
(113,404 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
Interest expense |
(45,696 |
) |
|
67 |
|
|
(9,214 |
) |
|
12,278 |
|
|
(42,565 |
) |
Interest income |
572 |
|
|
721 |
|
|
11,076 |
|
|
(12,278 |
) |
|
91 |
|
Other |
— |
|
|
6 |
|
|
(2,029 |
) |
|
— |
|
|
(2,023 |
) |
Equity in net earnings of subsidiaries |
(87,548 |
) |
|
— |
|
|
— |
|
|
87,548 |
|
|
— |
|
Total other income (expense) |
(132,672 |
) |
|
794 |
|
|
(167 |
) |
|
87,548 |
|
|
(44,497 |
) |
Income (loss) before income taxes |
(140,713 |
) |
|
(76,614 |
) |
|
(28,122 |
) |
|
87,548 |
|
|
(157,901 |
) |
Income tax expense (benefit): |
|
|
|
|
|
|
|
|
|
Current tax expense |
11,758 |
|
|
(10,241 |
) |
|
6,708 |
|
|
— |
|
|
8,225 |
|
Deferred tax expense (benefit) |
13,226 |
|
|
(11,865 |
) |
|
(1,790 |
) |
|
— |
|
|
(429 |
) |
Total income tax expense (benefit) |
24,984 |
|
|
(22,106 |
) |
|
4,918 |
|
|
— |
|
|
7,796 |
|
Net income (loss) |
(165,697 |
) |
|
(54,508 |
) |
|
(33,040 |
) |
|
87,548 |
|
|
(165,697 |
) |
Less: Convertible preferred stock dividend |
2,719 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,719 |
|
Net income (loss) available to common stockholders
|
$ |
(168,416 |
) |
|
$ |
(54,508 |
) |
|
$ |
(33,040 |
) |
|
$ |
87,548 |
|
|
$ |
(168,416 |
) |
(1)General and administration expenses for field operations are included in operating expenses.
PARKER DRILLING COMPANY AND SUBSIDIARIES (DEBTOR IN POSSESSION)
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
(Dollars in Thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2017 |
|
Parent |
|
Guarantor |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
Revenues |
$ |
— |
|
|
$ |
167,675 |
|
|
$ |
355,859 |
|
|
$ |
(81,014 |
) |
|
$ |
442,520 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
Operating expenses |
— |
|
|
93,834 |
|
|
342,667 |
|
|
(81,014 |
) |
|
355,487 |
|
Depreciation and amortization |
— |
|
|
81,248 |
|
|
41,125 |
|
|
— |
|
|
122,373 |
|
|
— |
|
|
175,082 |
|
|
383,792 |
|
|
(81,014 |
) |
|
477,860 |
|
Total operating gross margin (loss) |
— |
|
|
(7,407 |
) |
|
(27,933 |
) |
|
— |
|
|
(35,340 |
) |
General and administrative expense (1)
|
(323 |
) |
|
(24,887 |
) |
|
(466 |
) |
|
— |
|
|
(25,676 |
) |
Loss on impairment |
|
|
|
|
|
|
|
|
|
Provision for reduction in carrying value of certain assets |
— |
|
|
— |
|
|
(1,938 |
) |
|
— |
|
|
(1,938 |
) |
Gain (loss) on disposition of assets, net |
— |
|
|
(243 |
) |
|
(2,608 |
) |
|
— |
|
|
(2,851 |
) |
Total operating income (loss) |
(323 |
) |
|
(32,537 |
) |
|
(32,945 |
) |
|
— |
|
|
(65,805 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
Interest expense |
(47,135 |
) |
|
(220 |
) |
|
(7,906 |
) |
|
11,035 |
|
|
(44,226 |
) |
Interest income |
831 |
|
|
744 |
|
|
9,704 |
|
|
(11,035 |
) |
|
244 |
|
Other |
— |
|
|
71 |
|
|
55 |
|
|
— |
|
|
126 |
|
Equity in net earnings of subsidiaries |
(40,752 |
) |
|
— |
|
|
— |
|
|
40,752 |
|
|
— |
|
Total other income (expense) |
(87,056 |
) |
|
595 |
|
|
1,853 |
|
|
40,752 |
|
|
(43,856 |
) |
Income (loss) before income taxes |
(87,379 |
) |
|
(31,942 |
) |
|
(31,092 |
) |
|
40,752 |
|
|
(109,661 |
) |
Income tax expense (benefit): |
|
|
|
|
|
|
|
|
|
Current tax expense |
26,537 |
|
|
(22,524 |
) |
|
5,251 |
|
|
— |
|
|
9,264 |
|
Deferred tax expense (benefit) |
4,785 |
|
|
(7,763 |
) |
|
2,754 |
|
|
— |
|
|
(224 |
) |
Total income tax expense (benefit) |
31,322 |
|
|
(30,287 |
) |
|
8,005 |
|
|
— |
|
|
9,040 |
|
Net income (loss) |
(118,701 |
) |
|
(1,655 |
) |
|
(39,097 |
) |
|
40,752 |
|
|
(118,701 |
) |
Less: Convertible preferred stock dividend |
3,051 |
|
|
— |
|
|
— |
|
|
— |
|
|
3,051 |
|
Net income (loss) available to common stockholders
|
$ |
(121,752 |
) |
|
$ |
(1,655 |
) |
|
$ |
(39,097 |
) |
|
$ |
40,752 |
|
|
$ |
(121,752 |
) |
(1)General and administration expenses for field operations are included in operating expenses.
PARKER DRILLING COMPANY AND SUBSIDIARIES (DEBTOR IN POSSESSION)
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
(Dollars in Thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2016 |
|
Parent |
|
Guarantor |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
Revenues |
$ |
— |
|
|
$ |
151,100 |
|
|
$ |
382,094 |
|
|
$ |
(106,190 |
) |
|
$ |
427,004 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
Operating expenses |
— |
|
|
100,751 |
|
|
367,960 |
|
|
(106,190 |
) |
|
362,521 |
|
Depreciation and amortization |
— |
|
|
90,197 |
|
|
49,598 |
|
|
— |
|
|
139,795 |
|
|
— |
|
|
190,948 |
|
|
417,558 |
|
|
(106,190 |
) |
|
502,316 |
|
Total operating gross margin (loss) |
— |
|
|
(39,848 |
) |
|
(35,464 |
) |
|
— |
|
|
(75,312 |
) |
General and administrative expense (1)
|
(410 |
) |
|
(29,356 |
) |
|
(4,566 |
) |
|
— |
|
|
(34,332 |
) |
Gain (loss) on disposition of assets, net |
— |
|
|
(565 |
) |
|
(1,048 |
) |
|
— |
|
|
(1,613 |
) |
Total operating income (loss) |
(410 |
) |
|
(69,769 |
) |
|
(41,078 |
) |
|
— |
|
|
(111,257 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
Interest expense |
(48,160 |
) |
|
(642 |
) |
|
(6,434 |
) |
|
9,424 |
|
|
(45,812 |
) |
Interest income |
758 |
|
|
695 |
|
|
8,029 |
|
|
(9,424 |
) |
|
58 |
|
Other |
— |
|
|
483 |
|
|
(116 |
) |
|
— |
|
|
367 |
|
Equity in net earnings of subsidiaries |
(94,469 |
) |
|
— |
|
|
— |
|
|
94,469 |
|
|
— |
|
Total other income (expense) |
(141,871 |
) |
|
536 |
|
|
1,479 |
|
|
94,469 |
|
|
(45,387 |
) |
Income (loss) before income taxes |
(142,281 |
) |
|
(69,233 |
) |
|
(39,599 |
) |
|
94,469 |
|
|
(156,644 |
) |
Income tax expense (benefit): |
|
|
|
|
|
|
|
|
|
Current tax expense |
40,562 |
|
|
(35,251 |
) |
|
(203 |
) |
|
— |
|
|
5,108 |
|
Deferred tax expense (benefit) |
47,971 |
|
|
14,940 |
|
|
6,151 |
|
|
— |
|
|
69,062 |
|
Total income tax expense (benefit) |
88,533 |
|
|
(20,311 |
) |
|
5,948 |
|
|
— |
|
|
74,170 |
|
Net income (loss) |
(230,814 |
) |
|
(48,922 |
) |
|
(45,547 |
) |
|
94,469 |
|
|
(230,814 |
) |
Less: Convertible preferred stock dividend |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Net income (loss) available to common stockholders
|
$ |
(230,814 |
) |
|
$ |
(48,922 |
) |
|
$ |
(45,547 |
) |
|
$ |
94,469 |
|
|
$ |
(230,814 |
) |
(1) General and administration expenses for field operations are included in operating expenses.CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(Dollars in Thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2018 |
|
Parent |
|
Guarantor |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
Net income (loss) |
$ |
(165,697 |
) |
|
$ |
(54,508 |
) |
|
$ |
(33,040 |
) |
|
$ |
87,548 |
|
|
$ |
(165,697 |
) |
Other comprehensive income (loss), net of tax: |
|
|
|
|
|
|
|
|
|
Currency translation difference on related borrowings |
— |
|
|
— |
|
|
(646 |
) |
|
— |
|
|
$ |
(646 |
) |
Currency translation difference on foreign currency net investments |
— |
|
|
— |
|
|
(2,721 |
) |
|
— |
|
|
$ |
(2,721 |
) |
Total other comprehensive income (loss), net of tax: |
— |
|
|
— |
|
|
(3,367 |
) |
|
— |
|
|
(3,367 |
) |
Comprehensive income (loss) |
$ |
(165,697 |
) |
|
$ |
(54,508 |
) |
|
$ |
(36,407 |
) |
|
$ |
87,548 |
|
|
$ |
(169,064 |
) |
PARKER DRILLING COMPANY AND SUBSIDIARIES (DEBTOR IN POSSESSION)
CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(Dollars in Thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2017 |
|
Parent |
|
Guarantor |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
Net income (loss) |
$ |
(118,701 |
) |
|
$ |
(1,655 |
) |
|
$ |
(39,097 |
) |
|
$ |
40,752 |
|
|
$ |
(118,701 |
) |
Other comprehensive income (loss), net of tax: |
|
|
|
|
|
|
|
|
|
Currency translation difference on related borrowings |
— |
|
|
— |
|
|
643 |
|
|
— |
|
|
643 |
|
Currency translation difference on foreign currency net investments |
— |
|
|
— |
|
|
2,689 |
|
|
— |
|
|
2,689 |
|
Total other comprehensive income (loss), net of tax: |
— |
|
|
— |
|
|
3,332 |
|
|
— |
|
|
3,332 |
|
Comprehensive income (loss) |
$ |
(118,701 |
) |
|
$ |
(1,655 |
) |
|
$ |
(35,765 |
) |
|
$ |
40,752 |
|
|
$ |
(115,369 |
) |
PARKER DRILLING COMPANY AND SUBSIDIARIES (DEBTOR IN POSSESSION)
CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(Dollars in Thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2016 |
|
Parent |
|
Guarantor |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
Net income (loss) |
$ |
(230,814 |
) |
|
$ |
(48,922 |
) |
|
$ |
(45,547 |
) |
|
$ |
94,469 |
|
|
$ |
(230,814 |
) |
Other comprehensive gain (loss), net of tax: |
|
|
|
|
|
|
|
|
|
Currency translation difference on related borrowings |
— |
|
|
— |
|
|
(691 |
) |
|
— |
|
|
(691 |
) |
Currency translation difference on foreign currency net investments |
— |
|
|
— |
|
|
(4,265 |
) |
|
— |
|
|
(4,265 |
) |
Total other comprehensive gain (loss), net of tax: |
— |
|
|
— |
|
|
(4,956 |
) |
|
— |
|
|
(4,956 |
) |
Comprehensive income (loss) |
$ |
(230,814 |
) |
|
$ |
(48,922 |
) |
|
$ |
(50,503 |
) |
|
$ |
94,469 |
|
|
$ |
(235,770 |
) |
CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2018 |
|
Parent |
|
Guarantor |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(165,697 |
) |
|
$ |
(54,508 |
) |
|
$ |
(33,040 |
) |
|
$ |
87,548 |
|
|
$ |
(165,697 |
) |
Adjustments to reconcile net income (loss): |
|
|
|
|
|
|
— |
|
|
|
Depreciation and amortization |
— |
|
|
76,353 |
|
|
31,192 |
|
|
— |
|
|
107,545 |
|
Gain (loss) on disposition of assets, net |
— |
|
|
1,347 |
|
|
377 |
|
|
— |
|
|
1,724 |
|
Deferred tax expense (benefit) |
13,226 |
|
|
(11,865 |
) |
|
(1,790 |
) |
|
— |
|
|
(429 |
) |
Loss on impairment |
— |
|
|
40,917 |
|
|
9,781 |
|
|
— |
|
|
50,698 |
|
Reorganization items |
7,538 |
|
|
— |
|
|
— |
|
|
— |
|
|
7,538 |
|
Expenses not requiring cash |
4,526 |
|
|
(302 |
) |
|
(8,498 |
) |
|
9,425 |
|
|
5,151 |
|
Equity in net earnings (losses) of subsidiaries |
87,548 |
|
|
— |
|
|
— |
|
|
(87,548 |
) |
|
— |
|
Change in assets and liabilities: |
|
|
|
|
|
|
|
|
|
Accounts and notes receivable |
— |
|
|
(16,244 |
) |
|
1,009 |
|
|
— |
|
|
(15,235 |
) |
Rig materials and supplies |
— |
|
|
(4,454 |
) |
|
5,296 |
|
|
(593 |
) |
|
249 |
|
Other current assets |
(8,088 |
) |
|
(4,854 |
) |
|
2,082 |
|
|
— |
|
|
(10,860 |
) |
Other non-current assets |
1,042 |
|
|
3,315 |
|
|
8,763 |
|
|
(101 |
) |
|
13,019 |
|
Accounts payable and accrued liabilities |
(63,054 |
) |
|
57,305 |
|
|
7,207 |
|
|
(10,947 |
) |
|
(9,489 |
) |
Accrued income taxes |
11,611 |
|
|
(10,415 |
) |
|
(2,460 |
) |
|
— |
|
|
(1,264 |
) |
Net cash provided by (used in) operating activities |
(111,348 |
) |
|
76,595 |
|
|
19,919 |
|
|
(2,216 |
) |
|
(17,050 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
Capital expenditures |
— |
|
|
(56,897 |
) |
|
(13,670 |
) |
|
— |
|
|
(70,567 |
) |
Proceeds from the sale of assets |
— |
|
|
87 |
|
|
1,266 |
|
|
— |
|
|
1,353 |
|
Net cash provided by (used in) investing activities |
— |
|
|
(56,810 |
) |
|
(12,404 |
) |
|
— |
|
|
(69,214 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from borrowing under DIP facility |
10,000 |
|
|
— |
|
|
— |
|
|
— |
|
|
10,000 |
|
Payment of DIP facility costs |
(975 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(975 |
) |
Convertible preferred stock dividend |
(3,625 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(3,625 |
) |
Payments of debt issuance costs |
(1,443 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(1,443 |
) |
Shares surrendered in lieu of tax |
(251 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(251 |
) |
Intercompany advances, net |
48,594 |
|
|
(31,119 |
) |
|
(19,691 |
) |
|
2,216 |
|
|
— |
|
Net cash provided by (used in) financing activities |
52,300 |
|
|
(31,119 |
) |
|
(19,691 |
) |
|
2,216 |
|
|
3,706 |
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
(59,048 |
) |
|
(11,334 |
) |
|
(12,176 |
) |
|
— |
|
|
(82,558 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
75,342 |
|
|
20,655 |
|
|
45,552 |
|
|
— |
|
|
141,549 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
16,294 |
|
|
$ |
9,321 |
|
|
$ |
33,376 |
|
|
$ |
— |
|
|
$ |
58,991 |
|
PARKER DRILLING COMPANY AND SUBSIDIARIES (DEBTOR IN POSSESSION)
CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2017 |
|
Parent |
|
Guarantor |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(118,701 |
) |
|
$ |
(1,655 |
) |
|
$ |
(39,097 |
) |
|
$ |
40,752 |
|
|
(118,701 |
) |
Adjustments to reconcile net income (loss): |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
Depreciation and amortization |
— |
|
|
81,248 |
|
|
41,125 |
|
|
— |
|
|
122,373 |
|
Gain (loss) on disposition of assets, net |
— |
|
|
243 |
|
|
2,608 |
|
|
— |
|
|
2,851 |
|
Deferred tax expense (benefit) |
4,785 |
|
|
(7,763 |
) |
|
2,754 |
|
|
— |
|
|
(224 |
) |
Provision for reduction in carrying value of certain assets |
— |
|
|
— |
|
|
1,938 |
|
|
— |
|
|
1,938 |
|
Expenses not requiring cash |
5,651 |
|
|
4,793 |
|
|
4,869 |
|
|
(11,062 |
) |
|
4,251 |
|
Equity in net earnings (losses) of subsidiaries |
40,752 |
|
|
— |
|
|
— |
|
|
(40,752 |
) |
|
— |
|
Change in assets and liabilities: |
|
|
|
|
|
|
|
|
|
Accounts and notes receivable |
— |
|
|
(16,552 |
) |
|
13,495 |
|
|
(6,571 |
) |
|
(9,628 |
) |
Rig materials and supplies |
— |
|
|
(1,869 |
) |
|
6,579 |
|
|
— |
|
|
4,710 |
|
Other current assets |
(50,296 |
) |
|
34,096 |
|
|
14,881 |
|
|
— |
|
|
(1,319 |
) |
Other non-current assets |
361 |
|
|
(1,542 |
) |
|
3,234 |
|
|
6,605 |
|
|
8,658 |
|
Accounts payable and accrued liabilities |
(41,885 |
) |
|
30,359 |
|
|
(7,925 |
) |
|
10,737 |
|
|
(8,714 |
) |
Accrued income taxes |
79,319 |
|
|
(61,233 |
) |
|
(17,548 |
) |
|
— |
|
|
538 |
|
Net cash provided by (used in) operating activities |
(80,014 |
) |
|
60,125 |
|
|
26,913 |
|
|
(291 |
) |
|
6,733 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures |
— |
|
|
(42,990 |
) |
|
(11,543 |
) |
|
— |
|
|
(54,533 |
) |
Proceeds from the sale of assets |
— |
|
|
68 |
|
|
335 |
|
|
— |
|
|
403 |
|
Net cash provided by (used in) investing activities |
— |
|
|
(42,922 |
) |
|
(11,208 |
) |
|
— |
|
|
(54,130 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from the issuance of common stock |
25,200 |
|
|
— |
|
|
— |
|
|
— |
|
|
25,200 |
|
Proceeds from the issuance of convertible preferred stock |
50,000 |
|
|
— |
|
|
— |
|
|
— |
|
|
50,000 |
|
Payment of equity issuance costs |
(2,864 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(2,864 |
) |
Convertible preferred stock dividend |
(2,145 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(2,145 |
) |
Shares surrendered in lieu of tax |
(936 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(936 |
) |
Intercompany advances, net |
21,101 |
|
|
(10,753 |
) |
|
(10,639 |
) |
|
291 |
|
|
— |
|
Net cash provided by (used in) financing activities |
90,356 |
|
|
(10,753 |
) |
|
(10,639 |
) |
|
291 |
|
|
69,255 |
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
10,342 |
|
|
6,450 |
|
|
5,066 |
|
|
— |
|
|
21,858 |
|
Cash and cash equivalents at beginning of period |
65,000 |
|
|
14,205 |
|
|
40,486 |
|
|
— |
|
|
119,691 |
|
Cash and cash equivalents at end of period |
$ |
75,342 |
|
|
$ |
20,655 |
|
|
$ |
45,552 |
|
|
$ |
— |
|
|
$ |
141,549 |
|
PARKER DRILLING COMPANY AND SUBSIDIARIES (DEBTOR IN POSSESSION)
CONSOLIDATED STATEMENT OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
|
|
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|
|
|
|
|
|
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Year Ended December 31, 2016 |
|
Parent |
|
Guarantor |
|
Non-Guarantor |
|
Eliminations |
|
Consolidated |
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
(230,814 |
) |
|
$ |
(48,922 |
) |
|
$ |
(45,547 |
) |
|
$ |
94,469 |
|
|
$ |
(230,814 |
) |
Adjustments to reconcile net income (loss): |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
— |
|
|
90,197 |
|
|
49,598 |
|
|
— |
|
|
139,795 |
|
(Gain) loss on debt modification |
1,088 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,088 |
|
Accretion of contingent consideration |
— |
|
|
419 |
|
|
— |
|
|
— |
|
|
419 |
|
Gain (loss) on disposition of assets, net |
— |
|
|
565 |
|
|
1,048 |
|
|
— |
|
|
1,613 |
|
Deferred tax expense (benefit) |
47,971 |
|
|
14,940 |
|
|
6,151 |
|
|
— |
|
|
69,062 |
|
Expenses not requiring cash |
9,545 |
|
|
(4,900 |
) |
|
(2,127 |
) |
|
— |
|
|
2,518 |
|
Equity in net earnings of subsidiaries |
94,469 |
|
|
— |
|
|
— |
|
|
(94,469 |
) |
|
— |
|
Change in assets and liabilities: |
|
|
|
|
|
|
|
|
|
Accounts and notes receivable |
— |
|
|
25,848 |
|
|
34,543 |
|
|
— |
|
|
60,391 |
|
Rig materials and supplies |
— |
|
|
(361 |
) |
|
(1,391 |
) |
|
— |
|
|
(1,752 |
) |
Other current assets |
50,296 |
|
|
(34,479 |
) |
|
(13,677 |
) |
|
— |
|
|
2,140 |
|
Other non-current assets |
(299 |
) |
|
441 |
|
|
3,755 |
|
|
— |
|
|
3,897 |
|
Accounts payable and accrued liabilities |
(121,016 |
) |
|
99,511 |
|
|
2,011 |
|
|
— |
|
|
(19,494 |
) |
Accrued income taxes |
(10,381 |
) |
|
(1,134 |
) |
|
5,093 |
|
|
— |
|
|
(6,422 |
) |
Net cash provided by (used in) operating activities |
(159,141 |
) |
|
142,125 |
|
|
39,457 |
|
|
— |
|
|
22,441 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
Capital expenditures |
— |
|
|
(15,384 |
) |
|
(13,570 |
) |
|
— |
|
|
(28,954 |
) |
Proceeds from the sale of assets |
— |
|
|
437 |
|
|
2,004 |
|
|
— |
|
|
2,441 |
|
Net cash provided by (used in) investing activities |
— |
|
|
(14,947 |
) |
|
(11,566 |
) |
|
— |
|
|
(26,513 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
Payment for noncontrolling interest |
(3,375 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(3,375 |
) |
Payment of contingent consideration |
— |
|
|
(6,000 |
) |
|
— |
|
|
— |
|
|
(6,000 |
) |
Shares surrendered in lieu of tax |
(1,156 |
) |
|
|
|
|
|
|
|
(1,156 |
) |
Intercompany advances, net |
154,687 |
|
|
(120,659 |
) |
|
(34,028 |
) |
|
— |
|
|
— |
|
Net cash provided by (used in) financing activities |
150,156 |
|
|
(126,659 |
) |
|
(34,028 |
) |
|
— |
|
|
(10,531 |
) |
Net increase (decrease) in cash and cash equivalents |
(8,985 |
) |
|
519 |
|
|
(6,137 |
) |
|
— |
|
|
(14,603 |
) |
Cash and cash equivalents at beginning of period |
73,985 |
|
|
13,686 |
|
|
46,623 |
|
|
— |
|
|
134,294 |
|
Cash and cash equivalents at end of period |
$ |
65,000 |
|
|
$ |
14,205 |
|
|
$ |
40,486 |
|
|
$ |
— |
|
|
$ |
119,691 |
|
|