Quarterly report pursuant to Section 13 or 15(d)

Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements (Tables)

v2.4.0.8
Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements (Tables)
6 Months Ended
Jun. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Consolidating Condensed Balance Sheet
PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED BALANCE SHEET
(Dollars in Thousands)
(Unaudited)
 
 
June 30, 2014
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
26,366

 
$
7,438

 
$
52,642

 
$

 
$
86,446

Accounts and notes receivable, net

 
110,739

 
147,839

 

 
258,578

Rig materials and supplies

 
713

 
44,788

 

 
45,501

Deferred costs

 

 
9,621

 

 
9,621

Deferred income taxes

 
7,221

 
1,655

 

 
8,876

Other tax assets
55,366

 
(48,490
)
 
16,995

 

 
23,871

Other current assets

 
11,386

 
15,322

 

 
26,708

Total current assets
81,732

 
89,007

 
288,862

 

 
459,601

Property, plant and equipment, net
(19
)
 
595,418

 
310,700

 

 
906,099

Investment in subsidiaries and intercompany advances
2,259,176

 
152,307

 
2,113,594

 
(4,525,077
)
 

Other noncurrent assets
(478,308
)
 
516,754

 
238,376

 
(118,546
)
 
158,276

Total assets
$
1,862,581

 
$
1,353,486

 
$
2,951,532

 
$
(4,643,623
)
 
$
1,523,976

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
$
10,000

 
$

 
$

 
$

 
$
10,000

Accounts payable and accrued liabilities
56,856

 
113,169

 
265,992

 
(255,315
)
 
180,702

Accrued income taxes
(5,231
)
 
9,043

 
6,755

 

 
10,567

Total current liabilities
61,625

 
122,212

 
272,747

 
(255,315
)
 
201,269

Long-term debt
610,000

 

 

 

 
610,000

Other long-term liabilities
5,036

 
7,006

 
8,315

 

 
20,357

Long-term deferred tax liability
(28
)
 
55,361

 
(7,418
)
 

 
47,915

Intercompany payables
546,788

 
801,925

 
849,564

 
(2,198,277
)
 

Contingencies

 

 

 

 

Total liabilities
1,223,421

 
986,504

 
1,123,208

 
(2,453,592
)
 
879,541

Total equity
639,160

 
366,982

 
1,828,324

 
(2,190,031
)
 
644,435

Total liabilities and stockholders’ equity
$
1,862,581

 
$
1,353,486

 
$
2,951,532

 
$
(4,643,623
)
 
$
1,523,976

PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED BALANCE SHEET
(Dollars in Thousands)
(Unaudited)
 
 
December 31, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
88,697

 
$
8,310

 
$
51,682

 
$

 
$
148,689

Accounts and notes receivable, net

 
101,299

 
156,590

 

 
257,889

Rig materials and supplies

 
3,002

 
38,779

 

 
41,781

Deferred costs

 

 
13,682

 

 
13,682

Deferred income taxes
(57
)
 
8,435

 
1,562

 

 
9,940

Other tax assets
54,524

 
(46,770
)
 
16,325

 

 
24,079

Other current assets

 
9,089

 
14,134

 

 
23,223

Total current assets
143,164

 
83,365

 
292,754

 

 
519,283

Property, plant and equipment, net
60

 
562,148

 
309,148

 

 
871,356

Investment in subsidiaries and intercompany advances
1,906,128

 
(336,570
)
 
1,667,937

 
(3,237,495
)
 

Other noncurrent assets
(457,954
)
 
468,864

 
250,983

 
(117,776
)
 
144,117

Total assets
$
1,591,398

 
$
777,807

 
$
2,520,822

 
$
(3,355,271
)
 
$
1,534,756

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
$
25,000

 
$

 
$

 
$

 
$
25,000

Accounts payable and accrued liabilities
75,268

 
92,546

 
261,436

 
(254,364
)
 
174,886

Accrued income taxes

 
725

 
6,541

 

 
7,266

Total current liabilities
100,268

 
93,271

 
267,977

 
(254,364
)
 
207,152

Long-term debt
628,781

 

 

 

 
628,781

Other long-term liabilities
5,037

 
6,743

 
15,134

 

 
26,914

Long-term deferred tax liability

 
51,747

 
(12,980
)
 

 
38,767

Intercompany payables
227,504

 
291,783

 
422,645

 
(941,932
)
 

Contingencies

 

 

 

 

Total liabilities
961,590

 
443,544

 
692,776

 
(1,196,296
)
 
901,614

Total equity
629,808

 
334,263

 
1,828,046

 
(2,158,975
)
 
633,142

Total liabilities and stockholders’ equity
$
1,591,398

 
$
777,807

 
$
2,520,822

 
$
(3,355,271
)
 
$
1,534,756

Consolidating Condensed Statement of Operations

 
Six Months Ended June 30, 2014
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Total revenues
$

 
$
266,602

 
$
304,964

 
$
(88,107
)
 
$
483,459

Operating expenses

 
157,477

 
271,224

 
(88,107
)
 
340,594

Depreciation and amortization

 
41,175

 
29,342

 

 
70,517

Total operating gross margin

 
67,950

 
4,398

 

 
72,348

General and administration expense (1)
(304
)
 
(14,819
)
 
(848
)
 

 
(15,971
)
Gain on disposition of assets, net
(80
)
 
432

 
538

 

 
890

Total operating income (loss)
(384
)
 
53,563

 
4,088

 

 
57,267

Other income and (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(24,014
)
 
(85
)
 
(4,412
)
 
5,873

 
(22,638
)
Interest income
535

 
378

 
5,080

 
(5,873
)
 
120

Extinguishment of debt
(30,152
)
 

 

 

 
(30,152
)
Other

 
184

 
1,743

 

 
1,927

Equity in net earnings of subsidiaries
31,149

 

 

 
(31,149
)
 

Total other income (expense)
(22,482
)
 
477

 
2,411

 
(31,149
)
 
(50,743
)
Income (loss) before income taxes
(22,866
)
 
54,040

 
6,499

 
(31,149
)
 
6,524

Total Income tax expense (benefit)
(25,998
)
 
19,849

 
9,228

 

 
3,079

Net income (loss)
3,132

 
34,191

 
(2,729
)
 
(31,149
)
 
3,445

Less: Net income (loss) attributable to noncontrolling interest

 

 
313

 

 
313

Net income (loss) attributable to controlling interest
$
3,132

 
$
34,191

 
$
(3,042
)
 
$
(31,149
)
 
$
3,132


(1) General and administration expenses for field operations are included in operating expenses.




















PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
(Dollars in Thousands)
(Unaudited)

 
Six Months Ended June 30, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Total revenues
$

 
$
226,144

 
$
218,308

 
$
(51,362
)
 
$
393,090

Operating expenses

 
122,408

 
189,101

 
(51,362
)
 
260,147

Depreciation and amortization

 
37,380

 
24,412

 

 
61,792

Total operating gross margin

 
66,356

 
4,795

 

 
71,151

General and administration expense (1)
(90
)
 
(34,769
)
 
(190
)
 

 
(35,049
)
Gain on disposition of assets, net

 
1,952

 
(287
)
 

 
1,665

Total operating income (loss)
(90
)
 
33,539

 
4,318

 

 
37,767

Other income and (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(22,699
)
 
(58
)
 
(5,625
)
 
7,635

 
(20,747
)
Interest income
3,006

 
1,333

 
5,558

 
(7,635
)
 
2,262

Changes in fair value of derivative positions
54

 

 

 

 
54

Loss on extinguishment of debt

 

 

 

 

Other

 
(250
)
 
(411
)
 

 
(661
)
Equity in net earnings of subsidiaries
14,007

 

 

 
(14,007
)
 

Total other income (expense)
(5,632
)
 
1,025

 
(478
)
 
(14,007
)
 
(19,092
)
Income (loss) before income taxes
(5,722
)
 
34,564

 
3,840

 
(14,007
)
 
18,675

Income tax expense (benefit)
(14,595
)
 
17,770

 
6,554

 

 
9,729

Net income (loss)
8,873

 
16,794

 
(2,714
)
 
(14,007
)
 
8,946

Less: Net income (loss) attributable to noncontrolling interest

 

 
73

 

 
73

Net income (loss) attributable to controlling interest
$
8,873

 
$
16,794

 
$
(2,787
)
 
$
(14,007
)
 
$
8,873


(1) General and administration expenses for field operations are included in operating expenses.
Consolidating Condensed Statements of Comprehensive Income (Loss)
PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(Dollars in Thousands)
(Unaudited)


 
Three Months Ended June 30, 2014
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Comprehensive income:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
15,681

 
$
22,148

 
$
(1,333
)
 
$
(20,659
)
 
$
15,837

Other comprehensive income (loss), net of tax:

 

 

 

 

Currency translation difference on related borrowings

 

 
336

 

 
336

Currency translation difference on foreign currency net investments
 
 
 
 
(188
)
 
 
 
(188
)
Total other comprehensive income (loss), net of tax:

 

 
148

 

 
148

Comprehensive income (loss)
15,681

 
22,148

 
(1,185
)
 
(20,659
)
 
15,985

Comprehensive (income) attributable to noncontrolling interest

 

 
(80
)
 

 
(80
)
Comprehensive income (loss) attributable to controlling interest
$
15,681

 
$
22,148

 
$
(1,265
)
 
$
(20,659
)
 
$
15,905



PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(Dollars in Thousands)
(Unaudited)


 
Three Months Ended June 30, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Comprehensive income:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
8,281

 
$
6,809

 
$
7,112

 
$
(13,828
)
 
$
8,374

Other comprehensive income (loss), net of tax:

 

 

 

 

Currency translation difference on related borrowings

 

 
(965
)
 

 
(965
)
Currency translation difference on foreign currency net investments
 
 
 
 
401

 
 
 
401

Total other comprehensive income (loss), net of tax:

 

 
(564
)
 

 
(564
)
Comprehensive income (loss)
8,281

 
6,809

 
6,548

 
(13,828
)
 
7,810

Comprehensive (income) attributable to noncontrolling interest

 

 
(30
)
 

 
(30
)
Comprehensive income (loss) attributable to controlling interest
$
8,281

 
$
6,809

 
$
6,518

 
$
(13,828
)
 
$
7,780











PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(Dollars in Thousands)
(Unaudited)


 
Six Months Ended June 30, 2014
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Comprehensive income:
 
 
 
 
 
 
 
 
 
Net income
$
3,132

 
$
34,191

 
$
(2,729
)
 
$
(31,149
)
 
$
3,445

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
 
Currency translation difference on related borrowings

 

 
(468
)
 

 
(468
)
Currency translation difference on foreign currency net investments

 

 
511

 

 
511

Total other comprehensive income (loss), net of tax:

 

 
43

 

 
43

Comprehensive income
3,132

 
34,191

 
(2,686
)
 
(31,149
)
 
3,488

Comprehensive (income) attributable to noncontrolling interest

 

 
(234
)
 

 
(234
)
Comprehensive income attributable to controlling interest
$
3,132

 
$
34,191

 
$
(2,920
)
 
$
(31,149
)
 
$
3,254



PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(Dollars in Thousands)
(Unaudited)


 
Six Months Ended June 30, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Comprehensive income:
 
 
 
 
 
 
 
 
 
Net income
$
8,873

 
$
16,794

 
$
(2,714
)
 
$
(14,007
)
 
$
8,946

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
 
Currency translation difference on related borrowings

 

 
(965
)
 

 
(965
)
Currency translation difference on foreign currency net investments

 

 
401

 

 
401

Total other comprehensive income (loss), net of tax:

 

 
(564
)
 

 
(564
)
Comprehensive income
8,873

 
16,794

 
(3,278
)
 
(14,007
)
 
8,382

Comprehensive (income) attributable to noncontrolling interest

 

 
(30
)
 

 
(30
)
Comprehensive income attributable to controlling interest
$
8,873

 
$
16,794

 
$
(3,308
)
 
$
(14,007
)
 
$
8,352

Consolidated Condensed Statements of Cash Flows
ARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
 
 
Six Months Ended June 30, 2014
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
3,132

 
$
34,191

 
$
(2,729
)
 
$
(31,149
)
 
$
3,445

Adjustments to reconcile net income (loss):

 

 

 

 

Depreciation and amortization

 
41,175

 
29,342

 

 
70,517

Loss on extinguishment of debt
30,152

 

 

 

 
30,152

Gain on disposition of assets
80

 
(432
)
 
(538
)
 

 
(890
)
Deferred income tax expense
(19,621
)
 
8,917

 
2,346

 

 
(8,358
)
Expenses not requiring cash
7,939

 
(997
)
 
1,806

 

 
8,748

Equity in net earnings of subsidiaries
(31,149
)
 

 

 
31,149

 

Change in accounts receivable

 
(6,132
)
 
5,066

 

 
(1,066
)
Change in accrued income taxes
(5,231
)
 
9,481

 
(8,237
)
 

 
(3,987
)
Change in other assets
37,589

 
(51,431
)
 
13,065

 

 
(777
)
Change in liabilities
(19,629
)
 
20,886

 
4,532

 

 
5,789

Net cash provided by (used in) operating activities
3,262

 
55,658

 
44,653

 

 
103,573

 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures

 
(79,374
)
 
(26,814
)
 

 
(106,188
)
Proceeds from the sale of assets

 
1,008

 
2,338

 

 
3,346

Net cash (used in) investing activities

 
(78,366
)
 
(24,476
)
 

 
(102,842
)
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt issuance
400,000

 

 

 

 
400,000

Repayments of long term debt
(425,000
)
 

 

 

 
(425,000
)
Paydown on term note
(5,000
)
 

 

 

 
(5,000
)
Payment of debt issuance costs
(7,425
)
 

 

 

 
(7,425
)
Payment of debt extinguishment costs
(26,214
)
 

 

 

 
(26,214
)
Excess tax benefit from stock-based compensation
665

 

 

 

 
665

Intercompany advances, net
(2,619
)
 
21,836

 
(19,217
)
 

 

Net cash provided by (used in) financing activities
(65,593
)
 
21,836

 
(19,217
)
 

 
(62,974
)
 
 
 
 
 
 
 
 
 
 
Net change in cash and cash equivalents
(62,331
)
 
(872
)
 
960

 

 
(62,243
)
Cash and cash equivalents at beginning of year
88,697

 
8,310

 
51,682

 

 
148,689

Cash and cash equivalents at end of year
$
26,366

 
$
7,438

 
$
52,642

 
$

 
$
86,446

 
Six Months Ended June 30, 2014
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
3,132

 
$
34,191

 
$
(2,729
)
 
$
(31,149
)
 
$
3,445

Adjustments to reconcile net income (loss):

 

 

 

 

Depreciation and amortization

 
41,175

 
29,342

 

 
70,517

Loss on extinguishment of debt
30,152

 

 

 

 
30,152

Gain on disposition of assets
80

 
(432
)
 
(538
)
 

 
(890
)
Deferred income tax expense
(19,621
)
 
8,917

 
2,346

 

 
(8,358
)
Expenses not requiring cash
7,939

 
(997
)
 
1,806

 

 
8,748

Equity in net earnings of subsidiaries
(31,149
)
 

 

 
31,149

 

Change in accounts receivable

 
(6,132
)
 
5,066

 

 
(1,066
)
Change in accrued income taxes
(5,231
)
 
9,481

 
(8,237
)
 

 
(3,987
)
Change in other assets
37,589

 
(51,431
)
 
13,065

 

 
(777
)
Change in liabilities
(19,629
)
 
20,886

 
4,532

 

 
5,789

Net cash provided by (used in) operating activities
3,262

 
55,658

 
44,653

 

 
103,573

 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures

 
(79,374
)
 
(26,814
)
 

 
(106,188
)
Proceeds from the sale of assets

 
1,008

 
2,338

 

 
3,346

Net cash (used in) investing activities

 
(78,366
)
 
(24,476
)
 

 
(102,842
)
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt issuance
400,000

 

 

 

 
400,000

Repayments of long term debt
(425,000
)
 

 

 

 
(425,000
)
Paydown on term note
(5,000
)
 

 

 

 
(5,000
)
Payment of debt issuance costs
(7,425
)
 

 

 

 
(7,425
)
Payment of debt extinguishment costs
(26,214
)
 

 

 

 
(26,214
)
Excess tax benefit from stock-based compensation
665

 

 

 

 
665

Intercompany advances, net
(2,619
)
 
21,836

 
(19,217
)
 

 

Net cash provided by (used in) financing activities
(65,593
)
 
21,836

 
(19,217
)
 

 
(62,974
)
 
 
 
 
 
 
 
 
 
 
Net change in cash and cash equivalents
(62,331
)
 
(872
)
 
960

 

 
(62,243
)
Cash and cash equivalents at beginning of year
88,697

 
8,310

 
51,682

 

 
148,689

Cash and cash equivalents at end of year
$
26,366

 
$
7,438

 
$
52,642

 
$

 
$
86,446




PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
 
Six Months Ended June 30, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
8,873

 
$
16,794

 
$
(2,714
)
 
$
(14,007
)
 
$
8,946

Adjustments to reconcile net income (loss)
 
 
 
 
 
 
 
 
 
Depreciation and amortization

 
37,380

 
24,412

 

 
61,792

Loss on extinguishment of debt

 

 

 

 

Gain on disposition of assets

 
(1,952
)
 
287

 

 
(1,665
)
Deferred income tax expense
(4,560
)
 
6,261

 
99

 

 
1,800

Impairment and other charges

 

 

 

 

Expenses not requiring cash
5,218

 
1,563

 
1,208

 

 
7,989

Equity in net earnings of subsidiaries
(14,007
)
 

 

 
14,007

 

Change in accounts receivable
(125,337
)
 
(22,895
)
 
115,947

 

 
(32,285
)
Change in other assets
45,072

 
(42,264
)
 
3,903

 

 
6,711

Change in accrued income taxes
(35,297
)
 
41,272

 
(3,796
)
 

 
2,179

Change in liabilities
1,780

 
(14,043
)
 
2,720

 

 
(9,543
)
Net cash provided by (used in) operating activities
(118,258
)
 
22,116

 
142,066

 

 
45,924

 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures

 
(38,430
)
 
(25,107
)
 

 
(63,537
)
Proceeds from the sale of assets

 
2,834

 
67

 

 
2,901

Acquisition of ITS, net of cash acquired

 
(292
)
 
(117,699
)
 

 
(117,991
)
Net cash (used in) investing activities

 
(35,888
)
 
(142,739
)
 

 
(178,627
)
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
        Proceeds from debt issuance
125,000

 

 

 

 
125,000

Paydown on term note
(5,000
)
 

 

 

 
(5,000
)
        Payment of debt issuance costs
(5,386
)
 

 

 

 
(5,386
)
Excess tax benefit from stock-based compensation
(189
)
 

 

 

 
(189
)
        Intercompany advances, net
(23,712
)
 
7,792

 
15,920

 

 

Net cash provided by (used in) financing activities
90,713

 
7,792

 
15,920

 

 
114,425

 
 
 
 
 
 
 
 
 
 
Net change in cash and cash equivalents
(27,545
)
 
(5,980
)
 
15,247

 

 
(18,278
)
Cash and cash equivalents at beginning of year
42,251

 
11,023

 
34,612

 

 
87,886

Cash and cash equivalents at end of year
$
14,706

 
$
5,043

 
$
49,859

 
$

 
$
69,608