HOUSTON, Feb. 15, 2017
/PRNewswire/ -- Parker Drilling Company (NYSE: PKD) today announced
results for the fourth quarter ended December 31, 2016,
including a reported net loss of $48.9
million, or a $0.39 loss per
share, on revenues of $94.0
million.
The net loss includes a pre-tax $0.9
million expense related to executive departures and a
$6.8 million non-cash valuation
allowance taken primarily against UK deferred tax assets largely
relating to fixed assets. The valuation allowance accounted
for $0.05 of the reported loss per
share. While the deferred tax assets have been reserved on the
Company's financial statements, they have not expired and remain
available to offset future cash taxes. Excluding these items,
the adjusted net loss was $41.3
million, or a $0.33 loss per
share.
Fourth quarter Adjusted EBITDA was $5.2
million.
"Our fourth quarter results were in line with our expectations
in the face of ongoing market challenges. We continue our
efforts to maximize results and aggressively pursue opportunities
across all of our business lines," said Gary Rich, the Company's Chairman, President and
CEO.
"U.S. land activity drove improvements in our U.S. Rental Tools
Tubular Goods Utilization Index. We also saw continued
multi-well rig inquiries in the U.S. barge business. We
executed a contract for an 11 well, or approximately six month,
project for 1 barge rig that has mobilized to its first well
location and have prospects for 2 to 3 additional contracts with
anticipated start-ups late in the first quarter.
Internationally, current activity levels remain low; however, we
see increased rig tendering in many of our markets for work
anticipated to begin in late 2017 or early 2018.
"Throughout 2016, we remained focused on disciplined cost
control and cash management while maintaining the strength of our
business lines in order to benefit from improving conditions. We
ended the quarter with $210 million
in liquidity, up from $194 million at
the end of the third quarter, including $120
million in cash and $90
million available on our undrawn revolver.
"For 2017, we have identified a number of growth opportunities
and estimate total capital expenditures of $40 to $50 million, with expenditures weighted
toward the first half of 2017. While we are increasing
investments in our growth, we will continue to carefully manage our
liquidity and costs so we can respond to changing market conditions
and opportunities that develop," concluded Rich.
Fourth Quarter Review
Parker Drilling's revenues for
the 2016 fourth quarter, compared with the 2016 third quarter,
decreased 3.3 percent to $94.0
million from $97.2
million. Operating gross margin, excluding
depreciation and amortization expense (gross margin) increased 8.0
percent to $13.5 million from
$12.5 million and gross margin as a
percentage of revenues was 14.4 percent, compared with 12.9 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, revenues declined 6.6 percent to $62.3 million from $66.7
million. Gross margin increased 9.1 percent to
$10.8 million from $9.9 million, and gross margin as a percentage of
revenues was 17.3 percent, compared with 14.8 percent for the prior
period. Contracted backlog was $379
million at the end of the fourth quarter compared with
$421 million as of September 30,
2016.
U.S. (Lower 48)
Drilling
U.S. (Lower 48) Drilling segment
revenues were $0.8 million, a 42.9
percent decrease from 2016 third quarter revenues of $1.4 million. Gross margin was a
$3.4 million loss as compared with a
2016 third quarter loss of $3.7
million. The decline in revenues was primarily the result of
fewer revenue days, and the improvement in gross margin was due to
lower costs.
International & Alaska
Drilling
International & Alaska
Drilling segment revenues were $61.5
million, a 5.8 percent decrease from 2016 third quarter
revenues of $65.3 million.
Gross margin was $14.2 million, a 4.4
percent increase from 2016 third quarter gross margin of
$13.6 million. Gross margin as a
percentage of revenues was 23.1 percent as compared with 20.8
percent for the 2016 third quarter. The decrease in
revenues was primarily attributable to lower reimbursable
activity partially offset by an increase in activity associated
with our Atlantic Canada O&M project. The increase in
gross margin was primarily the result of lower operating expenses
in addition to a benefit associated with the release of a legacy
contract related accrual.
Rental Tools Services
Rental Tools Services revenues were $31.7
million, a 3.9 percent increase from 2016 third quarter
revenues of $30.5 million.
Gross margin was $2.7 million, a 3.8
percent increase from $2.6 million
for the 2016 third quarter. Gross margin as a percentage of
revenues was 8.5 percent as compared with 8.5 percent in the 2016
third quarter.
U.S. Rental Tools
U.S. Rental tools segment revenues
were $16.1 million, compared with
$15.0 million for the 2016 third
quarter. Gross margin was $4.0
million compared with $4.2
million for the 2016 third quarter. Revenues were up
as land based activity outpaced declines in offshore
activity. Gross margin declined as a result of bad debt
expense.
International Rental
Tools
International Rental Tools segment
revenues were $15.6 million, compared
with $15.5 million for the 2016 third
quarter and gross margin was a loss of $1.3
million compared with a loss of $1.7
million for the 2016 third quarter. The improvement in
gross margin was due to lower operating expenses.
Consolidated
General and Administrative expense increased to $9.1 million for the 2016 fourth quarter, from
$7.4 million for the 2016 third
quarter, predominately due to incentive plan adjustments and a
$0.9 million charge related to
executive departures recorded in the fourth quarter of 2016.
Capital expenditures in the fourth quarter were $8.0 million, and were $29.0 million for the year.
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 16, 2017, to review reported
results. You may access the call by telephone at (412)
902-0003 and asking for the 2016 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 23, 2017, at (201) 612-7415, access code
13653021#.
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,
2016
|
|
December 31,
2015
|
|
(Unaudited)
|
|
|
ASSETS:
|
|
|
|
Current
Assets
|
|
|
|
Cash and Cash
Equivalents
|
$
|
119,691
|
|
|
$
|
134,294
|
|
Accounts and Notes
Receivable, Net
|
113,231
|
|
|
175,105
|
|
Rig Materials and
Supplies
|
32,354
|
|
|
34,937
|
|
Deferred
Costs
|
1,436
|
|
|
1,367
|
|
Other Current
Assets
|
19,606
|
|
|
21,038
|
|
Total Current
Assets
|
286,318
|
|
|
366,741
|
|
|
|
|
|
Property, Plant and
Equipment, net
|
693,439
|
|
|
805,841
|
|
|
|
|
|
Other
Assets
|
|
|
|
Deferred Income
Taxes
|
70,309
|
|
|
139,282
|
|
Other
Assets
|
53,485
|
|
|
54,838
|
|
Total Other
Assets
|
123,794
|
|
|
194,120
|
|
|
|
|
|
Total
Assets
|
$
|
1,103,551
|
|
|
$
|
1,366,702
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY:
|
|
|
|
Current
Liabilities
|
|
|
|
Accounts Payable and
Accrued Liabilities
|
$
|
102,921
|
|
|
$
|
136,121
|
|
Total Current
Liabilities
|
102,921
|
|
|
136,121
|
|
|
|
|
|
Long-Term Debt, net
of debt issuance costs
|
576,326
|
|
|
574,798
|
|
|
|
|
|
Deferred Tax
Liability
|
69,333
|
|
|
68,654
|
|
|
|
|
|
Other Long-Term
Liabilities
|
15,836
|
|
|
18,617
|
|
|
|
|
|
Total Stockholders'
Equity
|
339,135
|
|
|
568,512
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
$
|
1,103,551
|
|
|
$
|
1,366,702
|
|
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,
|
|
|
2016
|
|
2015
|
|
2016
|
|
|
|
|
|
|
Revenues
|
$
|
94,025
|
|
|
$
|
148,748
|
|
|
$
|
97,189
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
Operating
Expenses
|
80,529
|
|
|
114,488
|
|
|
84,680
|
|
Depreciation and
Amortization
|
33,190
|
|
|
37,720
|
|
|
34,474
|
|
|
113,719
|
|
|
152,208
|
|
|
119,154
|
|
Total Operating Gross
Margin
|
(19,694)
|
|
|
(3,460)
|
|
|
(21,965)
|
|
|
|
|
|
|
|
General and
Administrative Expense
|
(9,132)
|
|
|
(6,947)
|
|
|
(7,424)
|
|
Provision for
Reduction in Carrying Value of Certain Assets
|
—
|
|
|
(9,268)
|
|
|
—
|
|
Gain (Loss) on
Disposition of Assets, net
|
(1,364)
|
|
|
(1,043)
|
|
|
(187)
|
|
Total Operating
Income (Loss)
|
(30,190)
|
|
|
(20,718)
|
|
|
(29,576)
|
|
|
|
|
|
|
|
Other Income
(Expense)
|
|
|
|
|
|
Interest
Expense
|
(11,048)
|
|
|
(11,388)
|
|
|
(11,015)
|
|
Interest
Income
|
10
|
|
|
60
|
|
|
9
|
|
Other
|
(1,409)
|
|
|
(6,119)
|
|
|
(351)
|
|
Total Other Income
(Expense)
|
(12,447)
|
|
|
(17,447)
|
|
|
(11,357)
|
|
|
|
|
|
|
|
Income (Loss) before
Income Taxes
|
(42,637)
|
|
|
(38,165)
|
|
|
(40,933)
|
|
|
|
|
|
|
|
Income Tax Expense
(Benefit)
|
6,292
|
|
|
(2,519)
|
|
|
5,295
|
|
|
|
|
|
|
|
Net Income
(Loss)
|
(48,929)
|
|
|
(35,646)
|
|
|
(46,228)
|
|
Less: Net Income
(Loss) Attributable to Noncontrolling Interest
|
—
|
|
|
—
|
|
|
—
|
|
Net Income (Loss)
Attributable to Controlling Interest
|
$
|
(48,929)
|
|
|
$
|
(35,646)
|
|
|
$
|
(46,228)
|
|
|
|
|
|
|
|
Income (Loss) per
Share - Basic
|
|
|
|
|
|
Net Income
(Loss)
|
$
|
(0.39)
|
|
|
$
|
(0.29)
|
|
|
$
|
(0.37)
|
|
|
|
|
|
|
|
Income (Loss) per
Share - Diluted
|
|
|
|
|
|
Net Income
(Loss)
|
$
|
(0.39)
|
|
|
$
|
(0.29)
|
|
|
$
|
(0.37)
|
|
|
|
|
|
|
|
Number of common
shares used in computing earnings per share:
|
|
|
|
|
|
Basic
|
124,830,473
|
|
|
122,951,598
|
|
|
124,486,848
|
|
Diluted
|
124,830,473
|
|
|
122,951,598
|
|
|
124,486,848
|
|
PARKER DRILLING
COMPANY
|
Consolidated
Statement Of Operations
|
(Dollars in
Thousands, Except Per Share Data)
|
(Unaudited)
|
|
|
|
|
|
|
|
Year Ended December
31,
|
|
2016
|
|
2015
|
|
2014
|
|
|
|
|
|
|
Revenues
|
$
|
427,004
|
|
|
$
|
712,183
|
|
|
$
|
968,684
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
Operating
Expenses
|
362,521
|
|
|
526,290
|
|
|
669,381
|
|
Depreciation and
Amortization
|
139,795
|
|
|
156,194
|
|
|
145,121
|
|
|
502,316
|
|
|
682,484
|
|
|
814,502
|
|
Total Operating Gross
Margin
|
(75,312)
|
|
|
29,699
|
|
|
154,182
|
|
|
|
|
|
|
|
General and
Administrative Expense
|
(34,332)
|
|
|
(36,190)
|
|
|
(35,016)
|
|
Provision for
Reduction in Carrying Value of Certain Assets
|
—
|
|
|
(12,490)
|
|
|
—
|
|
Gain (Loss) on
Disposition of Assets, Net
|
(1,613)
|
|
|
1,643
|
|
|
1,054
|
|
Total Operating
Income (Loss)
|
(111,257)
|
|
|
(17,338)
|
|
|
120,220
|
|
|
|
|
|
|
|
Other Income
(Expense)
|
|
|
|
|
|
Interest
Expense
|
(45,812)
|
|
|
(45,155)
|
|
|
(44,265)
|
|
Interest
Income
|
58
|
|
|
269
|
|
|
195
|
|
Loss on
extinguishment of debt
|
—
|
|
|
—
|
|
|
(30,152)
|
|
Other
|
367
|
|
|
(9,747)
|
|
|
2,539
|
|
Total Other Income
(Expense)
|
(45,387)
|
|
|
(54,633)
|
|
|
(71,683)
|
|
|
|
|
|
|
|
Income (Loss) before
Income Taxes
|
(156,644)
|
|
|
(71,971)
|
|
|
48,537
|
|
|
|
|
|
|
|
Income Tax Expense
(Benefit)
|
74,170
|
|
|
22,313
|
|
|
24,076
|
|
|
|
|
|
|
|
Net Income
(Loss)
|
(230,814)
|
|
|
(94,284)
|
|
|
24,461
|
|
Less: Net Income
(Loss) Attributable to Noncontrolling Interest
|
—
|
|
|
789
|
|
|
1,010
|
|
Net Income (Loss)
Attributable to Controlling Interest
|
$
|
(230,814)
|
|
|
$
|
(95,073)
|
|
|
$
|
23,451
|
|
|
|
|
|
|
|
Income (Loss) per
Share - Basic
|
|
|
|
|
|
Net Income
(Loss)
|
$
|
(1.86)
|
|
|
$
|
(0.78)
|
|
|
$
|
0.19
|
|
|
|
|
|
|
|
Income (Loss) per
Share - Diluted
|
|
|
|
|
|
Net Income
(Loss)
|
$
|
(1.86)
|
|
|
$
|
(0.78)
|
|
|
$
|
0.19
|
|
|
|
|
|
|
|
Number of common
shares used in computing earnings per share:
|
|
|
|
|
|
Basic
|
124,130,004
|
|
|
122,562,187
|
|
|
121,186,464
|
|
Diluted
|
124,130,004
|
|
|
122,562,187
|
|
|
123,076,648
|
|
PARKER DRILLING
COMPANY
|
Selected Financial
Data
|
(Dollars in
Thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended December
31,
|
|
|
|
December
31,
|
|
September
30,
|
|
2016
|
|
2015
|
|
2014
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling
Services:
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. (Lower 48)
Drilling
|
|
$
|
848
|
|
|
$
|
3,451
|
|
|
$
|
1,431
|
|
|
$
|
5,429
|
|
|
$
|
30,358
|
|
|
$
|
158,405
|
|
International &
Alaska Drilling
|
|
61,478
|
|
|
95,546
|
|
|
65,307
|
|
|
287,332
|
|
|
435,096
|
|
|
462,513
|
|
|
Total Drilling
Services:
|
|
62,326
|
|
|
98,997
|
|
|
66,738
|
|
|
292,761
|
|
|
465,454
|
|
|
620,918
|
|
Rental Tools
Services:
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Rental
Tools
|
|
16,130
|
|
|
28,734
|
|
|
14,967
|
|
|
71,613
|
|
|
141,889
|
|
|
223,545
|
|
International Rental
Tools
|
|
15,569
|
|
|
21,017
|
|
|
15,484
|
|
|
62,630
|
|
|
104,840
|
|
|
124,221
|
|
|
Total Rental Tools
Services
|
|
31,699
|
|
|
49,751
|
|
|
30,451
|
|
|
134,243
|
|
|
246,729
|
|
|
347,766
|
|
|
Total
Revenues
|
|
$
|
94,025
|
|
|
$
|
148,748
|
|
|
$
|
97,189
|
|
|
$
|
427,004
|
|
|
$
|
712,183
|
|
|
$
|
968,684
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling
Services:
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. (Lower 48)
Drilling
|
|
$
|
4,232
|
|
|
$
|
5,616
|
|
|
$
|
5,112
|
|
|
$
|
19,733
|
|
|
$
|
36,247
|
|
|
$
|
90,314
|
|
International &
Alaska Drilling
|
|
47,307
|
|
|
72,902
|
|
|
51,682
|
|
|
222,824
|
|
|
325,346
|
|
|
368,424
|
|
|
Total Drilling
Services:
|
|
51,539
|
|
|
78,518
|
|
|
56,794
|
|
|
242,557
|
|
|
361,593
|
|
|
458,738
|
|
Rental Tools
Services:
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Rental
Tools
|
|
12,102
|
|
|
15,593
|
|
|
10,746
|
|
|
50,216
|
|
|
77,056
|
|
|
105,353
|
|
International Rental
Tools
|
|
16,888
|
|
|
20,377
|
|
|
17,140
|
|
|
69,748
|
|
|
87,641
|
|
|
105,290
|
|
|
Total Rental Tools
Services
|
|
28,990
|
|
|
35,970
|
|
|
27,886
|
|
|
119,964
|
|
|
164,697
|
|
|
210,643
|
|
|
Total
Operating Expenses
|
|
$
|
80,529
|
|
|
$
|
114,488
|
|
|
$
|
84,680
|
|
|
$
|
362,521
|
|
|
$
|
526,290
|
|
|
$
|
669,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Gross
Margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling
Services:
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. (Lower 48)
Drilling
|
|
$
|
(3,384)
|
|
|
$
|
(2,165)
|
|
|
$
|
(3,681)
|
|
|
$
|
(14,304)
|
|
|
$
|
(5,889)
|
|
|
$
|
68,091
|
|
International &
Alaska Drilling
|
|
14,171
|
|
|
22,644
|
|
|
13,625
|
|
|
64,508
|
|
|
109,750
|
|
|
94,089
|
|
|
Total Drilling
Services
|
|
10,787
|
|
|
20,479
|
|
|
9,944
|
|
|
50,204
|
|
|
103,861
|
|
|
162,180
|
|
Rental Tools
Services:
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Rental
Tools
|
|
4,028
|
|
|
13,141
|
|
|
4,221
|
|
|
21,397
|
|
|
64,833
|
|
|
118,192
|
|
International Rental
Tools
|
|
(1,319)
|
|
|
640
|
|
|
(1,656)
|
|
|
(7,118)
|
|
|
17,199
|
|
|
18,931
|
|
|
Total Rental Tools
Services
|
|
2,709
|
|
|
13,781
|
|
|
2,565
|
|
|
14,279
|
|
|
82,032
|
|
|
137,123
|
|
|
Total
Operating Gross Margin Excluding
Depreciation and Amortization
|
|
13,496
|
|
|
34,260
|
|
|
12,509
|
|
|
64,483
|
|
|
185,893
|
|
|
299,303
|
|
Depreciation and
Amortization
|
|
(33,190)
|
|
|
(37,720)
|
|
|
(34,474)
|
|
|
(139,795)
|
|
|
(156,194)
|
|
|
(145,121)
|
|
|
Total
Operating Gross Margin
|
|
$
|
(19,694)
|
|
|
$
|
(3,460)
|
|
|
$
|
(21,965)
|
|
|
$
|
(75,312)
|
|
|
$
|
29,699
|
|
|
$
|
154,182
|
|
PARKER DRILLING
COMPANY
|
Adjusted EBITDA
(1)
|
(Dollars in
Thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
December
31, 2016
|
|
September
30, 2016
|
|
June 30,
2016
|
|
March 31,
2016
|
|
December
31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
Attributable to Controlling Interest
|
|
$
|
(48,929)
|
|
|
$
|
(46,228)
|
|
|
$
|
(39,822)
|
|
|
$
|
(95,835)
|
|
|
$
|
(35,646)
|
|
Interest
Expense
|
|
11,048
|
|
|
11,015
|
|
|
12,187
|
|
|
11,562
|
|
|
11,388
|
|
Income Tax Expense
(Benefit)
|
|
6,292
|
|
|
5,295
|
|
|
(913)
|
|
|
63,496
|
|
|
(2,519)
|
|
Depreciation and
Amortization
|
|
33,190
|
|
|
34,474
|
|
|
36,317
|
|
|
35,814
|
|
|
37,720
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
1,601
|
|
|
4,556
|
|
|
7,769
|
|
|
15,037
|
|
|
10,943
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Other (Income)
Expense
|
|
1,399
|
|
|
342
|
|
|
326
|
|
|
(2,492)
|
|
|
6,059
|
|
(Gain) Loss on
Disposition of Assets, net
|
|
1,364
|
|
|
187
|
|
|
2
|
|
|
60
|
|
|
1,043
|
|
Provision for
Reduction in Carrying Value of Certain Assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,268
|
|
Special items
(2)
|
|
876
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,265
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
5,240
|
|
|
$
|
5,085
|
|
|
$
|
8,097
|
|
|
$
|
12,605
|
|
|
$
|
28,578
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2015, special
items include a $1.3 million write-off of inventory associated with
our decision to no longer provide drilling services in
Colombia.
|
|
|
-
|
For the three months
ended December 31, 2016, special items include $0.9 million of net
severance associated with the departure of three
executives.
|
PARKER DRILLING
COMPANY
|
Reconciliation of
Adjusted Earnings Per Share
|
(Dollars in
Thousands, Except Per Share Data)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
December
31,
|
|
September
30,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
|
|
|
|
|
|
|
Net Income (Loss)
Attributable to Controlling Interest
|
|
$
|
(48,929)
|
|
|
$
|
(35,646)
|
|
|
$
|
(46,228)
|
|
Income (Loss) per
Diluted Share
|
|
$
|
(0.39)
|
|
|
$
|
(0.29)
|
|
|
$
|
(0.37)
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Sale of investment in
joint venture
|
|
$
|
—
|
|
|
4,799
|
|
|
—
|
|
|
Provision for
reduction in carrying value of certain assets
|
|
—
|
|
|
9,268
|
|
|
—
|
|
|
Write-off
inventory
|
|
—
|
|
|
1,265
|
|
|
—
|
|
|
Valuation
allowance
|
|
6,772
|
|
|
—
|
|
|
—
|
|
|
Special
Items
|
|
876
|
|
|
—
|
|
|
—
|
|
|
Total adjustments
|
|
7,648
|
|
|
15,332
|
|
|
—
|
|
|
Tax effect of
adjustments
|
|
—
|
|
|
(3,010)
|
|
|
—
|
|
|
Net adjustments
|
|
7,648
|
|
|
12,322
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Adjusted net
income (loss) attributable to controlling
interest(1)
|
|
$
|
(41,281)
|
|
|
$
|
(23,324)
|
|
|
$
|
(46,228)
|
|
Adjusted income
(loss) per diluted share(1)
|
|
$
|
(0.33)
|
|
|
$
|
(0.19)
|
|
|
$
|
(0.37)
|
|
|
|
|
|
|
|
|
|
(1)
|
We believe Adjusted
Net Income (Loss) Attributable to Controlling Interest 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) Attributable to Controlling Interest and Income
(Loss) per Diluted Share to be items outside of the Company's
normal operating results. Adjusted Net Income (Loss) Attributable
to Controlling Interest 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) or Income (Loss) per Diluted Share.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/parker-drilling-reports-2016-fourth-quarter-results-300408352.html
SOURCE Parker Drilling Company