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)
9 Months Ended
Sep. 30, 2013
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)
 
 
September 30, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
89,516

 
$
21,273

 
$
51,668

 
$

 
$
162,457

Accounts and notes receivable, net
290,856

 
113,873

 
386,521

 
(541,627
)
 
249,623

Rig materials and supplies

 
2,364

 
37,838

 

 
40,202

Deferred costs

 
32

 
13,551

 

 
13,583

Deferred income taxes

 
12,363

 
1,110

 

 
13,473

Other tax assets
43,171

 
(46,939
)
 
22,201

 

 
18,433

Assets held for sale

 
1,183

 
6,302

 

 
7,485

Other current assets

 
14,238

 
6,668

 

 
20,906

Total current assets
423,543

 
118,387

 
525,859

 
(541,627
)
 
526,162

Property, plant and equipment, net
60

 
559,885

 
298,727

 

 
858,672

Investment in subsidiaries and intercompany advances
944,584

 
(220,110
)
 
1,593,743

 
(2,318,217
)
 

Other noncurrent assets
52,147

 
60,002

 
38,397

 

 
150,546

Total assets
$
1,420,334

 
$
518,164

 
$
2,456,726

 
$
(2,859,844
)
 
$
1,535,380

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

 
$

 
$

 
$

 
$

Accounts payable and accrued liabilities
81,524

 
101,207

 
263,709

 
(255,211
)
 
191,229

Accrued income taxes

 
529

 
6,732

 

 
7,261

Total current liabilities
81,524

 
101,736

 
270,441

 
(255,211
)
 
198,490

Long-term debt
653,968

 

 

 

 
653,968

Other long-term liabilities
4,289

 
5,806

 
13,953

 

 
24,048

Long-term deferred tax liability

 
47,684

 
(8,600
)
 

 
39,084

Intercompany payables
62,584

 
43,669

 
359,106

 
(465,359
)
 

Contingencies

 

 

 

 

Stockholders’ equity:
 
 
 
 
 
 
 
 
 
Common stock
20,050

 
18,049

 
43,003

 
(61,052
)
 
20,050

Capital in excess of par value
654,750

 
733,899

 
1,579,458

 
(2,313,357
)
 
654,750

Accumulated other comprehensive income

 

 
957

 

 
957

Retained earnings (accumulated deficit)
(56,831
)
 
(432,679
)
 
196,587

 
235,135

 
(57,788
)
Total controlling interest stockholders’ equity
617,969

 
319,269

 
1,820,005

 
(2,139,274
)
 
617,969

Noncontrolling interest

 

 
1,821

 

 
1,821

Total equity
617,969

 
319,269

 
1,821,826

 
(2,139,274
)
 
619,790

Total liabilities and stockholders’ equity
$
1,420,334

 
$
518,164

 
$
2,456,726

 
$
(2,859,844
)
 
$
1,535,380


PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED BALANCE SHEET
(Dollars in Thousands)
(Unaudited)
 
 
December 31, 2012
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
42,251

 
$
11,023

 
$
34,612

 
$

 
$
87,886

Accounts and notes receivable, net
289,957

 
98,747

 
292,644

 
(512,786
)
 
168,562

Rig materials and supplies

 
2,834

 
26,026

 

 
28,860

Deferred costs

 

 
1,089

 

 
1,089

Deferred income taxes

 
7,615

 
1,127

 

 
8,742

Other tax assets
46,249

 
(31,136
)
 
18,411

 

 
33,524

Assets held for sale

 

 
6,800

 

 
6,800

Other current assets

 
8,675

 
4,146

 

 
12,821

Total current assets
378,457

 
97,758

 
384,855

 
(512,786
)
 
348,284

Property, plant and equipment, net
60

 
548,794

 
240,269

 

 
789,123

Investment in subsidiaries and intercompany advances
780,878

 
(233,388
)
 
1,467,429

 
(2,014,919
)
 

Other noncurrent assets
43,569

 
59,541

 
15,216

 

 
118,326

Total assets
$
1,202,964

 
$
472,705

 
$
2,107,769

 
$
(2,527,705
)
 
$
1,255,733

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

 
$

 
$

 
$

 
$
10,000

Accounts payable and accrued liabilities
65,839

 
93,243

 
205,864

 
(227,200
)
 
137,746

Accrued income taxes

 
612

 
3,508

 

 
4,120

Total current liabilities
75,839

 
93,855

 
209,372

 
(227,200
)
 
151,866

Long-term debt
469,205

 

 

 

 
469,205

Other long-term liabilities
3,933

 
6,129

 
13,120

 

 
23,182

Long-term deferred tax liability

 
36,894

 
(16,047
)
 

 
20,847

Intercompany payables
62,583

 
43,657

 
216,320

 
(322,560
)
 

Contingencies

 

 

 

 

Stockholders’ equity:
 
 
 
 
 
 
 
 
 
Common stock
19,818

 
18,049

 
43,003

 
(61,052
)
 
19,818

Capital in excess of par value
646,217

 
733,112

 
1,455,246

 
(2,188,358
)
 
646,217

Accumulated other comprehensive income

 

 

 

 

Retained earnings (accumulated deficit)
(74,631
)
 
(458,991
)
 
187,526

 
271,465

 
(74,631
)
Total controlling interest stockholders’ equity
591,404

 
292,170

 
1,685,775

 
(1,977,945
)
 
591,404

Noncontrolling interest

 

 
(771
)
 

 
(771
)
Total Equity
591,404

 
292,170

 
1,685,004

 
(1,977,945
)
 
590,633

Total liabilities and stockholders’ equity
$
1,202,964

 
$
472,705

 
$
2,107,769

 
$
(2,527,705
)
 
$
1,255,733

Consolidating Condensed Statement of Operations
PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
(Dollars in Thousands)
(Unaudited)

 
Three months ended September 30, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Total revenues
$

 
$
119,223

 
$
170,609

 
$
(52,070
)
 
$
237,762

Operating expenses

 
64,297

 
141,514

 
(52,070
)
 
153,741

Depreciation and amortization

 
19,956

 
15,926

 

 
35,882

Total operating gross margin

 
34,970

 
13,169

 

 
48,139

General and administration expense (1)
(47
)
 
(14,028
)
 
(113
)
 

 
(14,188
)
Gain on disposition of assets, net

 
(34
)
 
1,128

 

 
1,094

Total operating income (loss)
(47
)
 
20,908

 
14,184

 

 
35,045

Other income and (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(14,035
)
 
(107
)
 
(2,198
)
 
3,213

 
(13,127
)
Interest income
360

 
250

 
2,733

 
(3,213
)
 
130

Extinguishment of debt
(5,218
)
 

 

 

 
(5,218
)
Changes in fair value of derivative positions

 

 

 

 

Other
(1
)
 
(11
)
 
412

 

 
400

Equity in net earnings of subsidiaries
22,322

 

 

 
(22,322
)
 

Total other income (expense)
3,428

 
132

 
947

 
(22,322
)
 
(17,815
)
Income (benefit) before income taxes
3,381

 
21,040

 
15,131

 
(22,322
)
 
17,230

Total income tax expense (benefit)
(4,589
)
 
10,223

 
3,478

 

 
9,112

Net income (loss)
7,970

 
10,817

 
11,653

 
(22,322
)
 
8,118

Less: Net income (loss) attributable to noncontrolling interest

 

 
148

 

 
148

Net income (loss) attributable to controlling interest
$
7,970

 
$
10,817

 
$
11,505

 
$
(22,322
)
 
$
7,970


(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)

 
Three Months Ended September 30, 2012
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Total revenues
$

 
$
98,969

 
$
94,749

 
$
(28,417
)
 
$
165,301

Operating expenses

 
45,850

 
84,051

 
(28,417
)
 
101,484

Depreciation and amortization

 
17,866

 
11,913

 

 
29,779

Total operating gross margin

 
35,253

 
(1,215
)
 

 
34,038

General and administration expense (1)
(47
)
 
(8,823
)
 
(35
)
 

 
(8,905
)
Gain on disposition of assets, net

 
553

 
53

 

 
606

Total operating income (loss)
(47
)
 
26,983

 
(1,197
)
 

 
25,739

Other income and (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(9,105
)
 
(43
)
 
(1,840
)
 
2,817

 
(8,171
)
Interest income
95

 
179

 
2,573

 
(2,817
)
 
30

Changes in fair value of derivative positions
19

 

 

 

 
19

Loss on extinguishment of debt
(117
)
 

 

 

 
(117
)
Other

 
26

 

 

 
26

Equity in net earnings of subsidiaries
10,596

 

 

 
(10,596
)
 

Total other income (expense)
1,488

 
162

 
733

 
(10,596
)
 
(8,213
)
Income (loss) before income taxes
1,441

 
27,145

 
(464
)
 
(10,596
)
 
17,526

Income tax expense (benefit)
(9,495
)
 
10,451

 
5,739

 

 
6,695

Net income (loss)
10,936

 
16,694

 
(6,203
)
 
(10,596
)
 
10,831

Less: Net income (loss) attributable to noncontrolling interest

 

 
(105
)
 

 
(105
)
Net income (loss) attributable to controlling interest
$
10,936

 
$
16,694

 
$
(6,098
)
 
$
(10,596
)
 
$
10,936


(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)

 
Nine Months Ended September 30, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Total revenues
$

 
$
345,434

 
$
388,912

 
$
(103,428
)
 
$
630,918

Operating expenses

 
186,708

 
331,056

 
(103,428
)
 
414,336

Depreciation and amortization

 
57,335

 
40,339

 

 
97,674

Total operating gross margin

 
101,391

 
17,517

 

 
118,908

General and administration expense (1)
(140
)
 
(48,942
)
 
(367
)
 

 
(49,449
)
Gain on disposition of assets, net

 
1,917

 
842

 

 
2,759

Total operating income (loss)
(140
)
 
54,366

 
17,992

 

 
72,218

Other income and (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(36,734
)
 
(167
)
 
(9,494
)
 
12,521

 
(33,874
)
Interest income
3,366

 
1,584

 
9,963

 
(12,521
)
 
2,392

Extinguishment of debt
(5,218
)
 

 

 

 
(5,218
)
Changes in fair value of derivative positions
54

 

 

 

 
54

Other

 
(178
)
 
511

 

 
333

Equity in net earnings of subsidiaries
36,330

 

 

 
(36,330
)
 

Total other income (expense)
(2,202
)
 
1,239

 
980

 
(36,330
)
 
(36,313
)
Income (loss) before income taxes
(2,342
)
 
55,605

 
18,972

 
(36,330
)
 
35,905

Total Income tax expense (benefit)
(19,185
)
 
27,993

 
10,033

 

 
18,841

Net income (loss)
16,843

 
27,612

 
8,939

 
(36,330
)
 
17,064

Less: Net income (loss) attributable to noncontrolling interest

 

 
221

 

 
221

Net income (loss) attributable to controlling interest
$
16,843

 
$
27,612

 
$
8,718

 
$
(36,330
)
 
$
16,843


(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)

 
Nine Months Ended September 30, 2012
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Total revenues
$

 
$
302,892

 
$
295,811

 
$
(77,908
)
 
$
520,795

Operating expenses

 
136,849

 
242,001

 
(77,908
)
 
300,942

Depreciation and amortization

 
49,127

 
36,230

 

 
85,357

Total operating gross margin

 
116,916

 
17,580

 

 
134,496

General and administration expense (1)
(137
)
 
(21,273
)
 
(412
)
 

 
(21,822
)
Gain on disposition of assets, net

 
1,168

 
1,298

 

 
2,466

Total operating income (loss)
(137
)
 
96,811

 
18,466

 

 
115,140

Other income and (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(27,923
)
 
(115
)
 
(5,811
)
 
8,716

 
(25,133
)
Interest income
8,695

 
4,894

 
39,345

 
(52,825
)
 
109

Changes in fair value of derivative positions
8

 

 

 

 
8

Loss on extinguishment of debt
(1,766
)
 

 

 

 
(1,766
)
Other

 
64

 
(2
)
 

 
62

Equity in net earnings of subsidiaries
61,553

 

 

 
(61,553
)
 

Total other income (expense)
40,567

 
4,843

 
33,532

 
(105,662
)
 
(26,720
)
Income (loss) before income taxes
40,430

 
101,654

 
51,998

 
(105,662
)
 
88,420

Income tax expense (benefit)
(16,981
)
 
38,149

 
9,987

 

 
31,155

Net income (loss)
57,411

 
63,505

 
42,011

 
(105,662
)
 
57,265

Less: Net income (loss) attributable to noncontrolling interest

 

 
(146
)
 

 
(146
)
Net income (loss) attributable to controlling interest
$
57,411

 
$
63,505

 
$
42,157

 
$
(105,662
)
 
$
57,411


(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 September 30, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Comprehensive income:

 

 

 

 

Net income
$
7,970

 
$
10,817

 
$
11,653

 
$
(22,322
)
 
$
8,118

Other comprehensive gain, net of tax:

 

 

 

 

Currency translation difference on related borrowings

 

 
(577
)
 

 
(577
)
Currency translation difference on foreign currency net investments
 
 
 
 
2,098

 
 
 
2,098

Total other comprehensive gain, net of tax:

 

 
1,521

 

 
1,521

Comprehensive income
7,970

 
10,817

 
13,174

 
(22,322
)
 
9,639

Comprehensive (income) attributable to noncontrolling interest

 

 
(53
)
 

 
(53
)
Comprehensive income attributable to controlling interest
$
7,970

 
$
10,817

 
$
13,121

 
$
(22,322
)
 
$
9,586



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


 
Nine Months Ended September 30, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Comprehensive income:

 

 

 

 

Net income
$
16,843

 
$
27,612

 
$
8,939

 
$
(36,330
)
 
$
17,064

Other comprehensive gain, net of tax:

 

 

 

 

Currency translation difference on related borrowings

 

 
(1,542
)
 

 
(1,542
)
Currency translation difference on foreign currency net investments
 
 
 
 
2,499

 
 
 
2,499

Total other comprehensive gain, net of tax:

 

 
957

 

 
957

Comprehensive income
16,843

 
27,612

 
9,896

 
(36,330
)
 
18,021

Comprehensive (income) attributable to noncontrolling interest

 

 
(83
)
 

 
(83
)
Comprehensive income attributable to controlling interest
$
16,843

 
$
27,612

 
$
9,813

 
$
(36,330
)
 
$
17,938

Consolidated Condensed Statements of Cash Flows
PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
 
 
Nine Months Ended September 30, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
16,843

 
$
27,612

 
$
8,939

 
$
(36,330
)
 
$
17,064

Adjustments to reconcile net income (loss):

 

 

 

 

Depreciation and amortization

 
57,335

 
40,339

 

 
97,674

Loss on extinguishment of debt
5,218

 

 

 

 
5,218

Gain on disposition of assets

 
(1,917
)
 
(842
)
 

 
(2,759
)
Deferred income tax expense
(2,860
)
 
10,479

 
5,253

 

 
12,872

Expenses not requiring cash
10,494

 
591

 
(1,157
)
 

 
9,928

Equity in net earnings of subsidiaries
(36,330
)
 

 

 
36,330

 

Change in accounts receivable
(899
)
 
(7,951
)
 
(19,755
)
 

 
(28,605
)
Change in accrued income taxes
358

 
(85
)
 
2,604

 

 
2,877

Change in other assets
3,045

 
4,580

 
(8,971
)
 

 
(1,346
)
Change in liabilities
14,222

 
(2,116
)
 
306

 

 
12,412

Net cash provided by (used in) operating activities
10,091

 
88,528

 
26,716

 

 
125,335

 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures

 
(66,956
)
 
(35,900
)
 

 
(102,856
)
Proceeds from the sale of assets

 
2,751

 
2,782

 

 
5,533

Acquisition of ITS, net of cash acquired

 
(292
)
 
(117,699
)
 

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

 
(64,497
)
 
(150,817
)
 

 
(215,314
)
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt issuance
350,000

 

 

 

 
350,000

Repayments of long term debt
(125,000
)
 

 

 

 
(125,000
)
Paydown on term note
(50,000
)
 

 

 

 
(50,000
)
Payment of debt issuance costs
(10,981
)
 

 

 

 
(10,981
)
Excess tax benefit from stock-based compensation
531

 

 

 

 
531

Intercompany advances, net
(127,376
)
 
(13,781
)
 
141,157

 

 

Net cash provided by (used in) financing activities
37,174

 
(13,781
)
 
141,157

 

 
164,550

 
 
 
 
 
 
 
 
 
 
Net change in cash and cash equivalents
47,265

 
10,250

 
17,056

 

 
74,571

Cash and cash equivalents at beginning of year
42,251

 
11,023

 
34,612

 

 
87,886

Cash and cash equivalents at end of year
$
89,516

 
$
21,273

 
$
51,668

 
$

 
$
162,457



PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
 
Nine Months Ended September 30, 2012
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
57,411

 
$
63,505

 
$
42,011

 
$
(105,662
)
 
$
57,265

Adjustments to reconcile net income (loss)


 


 


 


 


to net cash provided by operating activities:


 


 


 


 


Depreciation and amortization

 
49,127

 
36,230

 

 
85,357

Loss on extinguishment of debt
1,766

 

 

 

 
1,766

Gain on disposition of assets

 
(1,168
)
 
(1,298
)
 

 
(2,466
)
Deferred income tax expense
5,940

 
4,868

 
(2,405
)
 

 
8,403

Expenses not requiring cash
13,264

 
689

 
1,770

 
1

 
15,724

Equity in net earnings of subsidiaries
(61,553
)
 

 

 
61,553

 

Change in accounts receivable
(291
)
 
766

 
24,173

 

 
24,648

Change in other assets
(32,874
)
 
61,320

 
(27,882
)
 

 
564

Change in accrued income taxes
(5,068
)
 
1,832

 
187

 

 
(3,049
)
Change in liabilities
12,917

 
(21,430
)
 
(1,672
)
 

 
(10,185
)
Net cash provided by (used in) operating activities
(8,488
)
 
159,509

 
71,114

 
(44,108
)
 
178,027

 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures

 
(139,618
)
 
(8,040
)
 

 
(147,658
)
Proceeds from the sale of assets

 
1,667

 
1,829

 

 
3,496

Intercompany dividend payment
(8,387
)
 
(4,357
)
 
(31,364
)
 
44,108

 

Net cash (used in) investing activities
(8,387
)
 
(142,308
)
 
(37,575
)
 
44,108

 
(144,162
)
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt issuance
130,000

 

 

 

 
130,000

Repayments of senior notes
(125,000
)
 

 

 

 
(125,000
)
Paydown on term note
(18,000
)
 

 

 

 
(18,000
)
Payment of debt issuance costs
(3,516
)
 

 

 

 
(3,516
)
Payment of debt extinguishment costs
(519
)
 

 

 

 
(519
)
Excess tax benefit from stock-based compensation
(572
)
 

 

 

 
(572
)
Intercompany advances, net
56,280

 
(13,507
)
 
(42,773
)
 

 

Net cash provided by (used in) financing activities
38,673

 
(13,507
)
 
(42,773
)
 

 
(17,607
)
 
 
 
 
 
 
 
 
 
 
Net change in cash and cash equivalents
21,798

 
3,694

 
(9,234
)
 

 
16,258

Cash and cash equivalents at beginning of year
55,670

 
4,212

 
37,987

 

 
97,869

Cash and cash equivalents at end of year
$
77,468

 
$
7,906

 
$
28,753

 
$

 
$
114,127