-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WWSzHZulgCncUe3JkffGWgexzqdS71hC9ZRskWpzhShBez0DzmtDah9NAGGo+yU9 1h0krotVXmQ0RrKvQ+DE3A== 0000950129-03-005264.txt : 20031031 0000950129-03-005264.hdr.sgml : 20031031 20031031090103 ACCESSION NUMBER: 0000950129-03-005264 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031031 ITEM INFORMATION: FILED AS OF DATE: 20031031 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PARKER DRILLING CO /DE/ CENTRAL INDEX KEY: 0000076321 STANDARD INDUSTRIAL CLASSIFICATION: DRILLING OIL & GAS WELLS [1381] IRS NUMBER: 730618660 STATE OF INCORPORATION: DE FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07573 FILM NUMBER: 03968336 BUSINESS ADDRESS: STREET 1: 1401 ENCLAVE PARKWAY STREET 2: SUITE 600 CITY: HOUSTON STATE: TX ZIP: 77077 BUSINESS PHONE: 2814062000 MAIL ADDRESS: STREET 1: 1401 ENCLAVE PARKWAY STREET 2: SUITE 600 CITY: HOUSTON STATE: TX ZIP: 77077 8-K 1 h10041e8vk.txt PARKER DRILLING COMPANY - OCTOBER 31, 2003 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): October 31, 2003 PARKER DRILLING COMPANY ----------------------- (Exact Name of Registrant as Specified in Charter) Delaware 1-7573 73-0618660 -------- ------ ---------- (State of Incorporation) (Commission File Number) (IRS Employer Identification No.) 1401 Enclave Parkway, Suite 600, Houston, Texas 77077 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (281) 406-2000 (Not Applicable) (Former Name or Former Address, If Changed Since Last Report) ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On October 31, 2003, the Registrant issued its press release announcing third quarter 2003 earnings and results of operations. A copy of this press release is attached as Exhibit 99 to this Report on Form 8-K. This information is being furnished pursuant to Item 12 of Form 8-K and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that thereof, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in any such filing. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: October 31, 2003 PARKER DRILLING COMPANY By: /s/ Robert L. Parker Jr. -------------------------------------- Robert L. Parker Jr. President and Chief Executive Officer Exhibit Index
EXHIBIT NO. DESCRIPTION - ----------- ----------- 99 Press Release dated October 31, 2003, issued by the Registrant, announcing the third quarter 2003 earnings and results of operations.
EX-99 3 h10041exv99.txt PRESS RELEASE - ANNOUNCING 3RD QUARTER EARNINGS FOR IMMEDIATE RELEASE Investor Contact: David Tucker 281-406-2370 October 31, 2003 Media Contact: Rose Bratton 281-406-2212 PARKER DRILLING REPORTS THIRD QUARTER RESULTS HOUSTON - For the quarter ended September 30, 2003, Parker Drilling reported revenues of $77.0 million and a net loss of $6.7 million, or $0.07 per share, compared to a net loss of $8.0 million or $0.09 per share on revenues of $87.2 million for the third quarter of 2002. The loss from continuing operations for the third quarter of 2003 was $10.6 million or $0.11 per share compared to a loss from continuing operations of $0.2 million or $0.00 per share for the third quarter of 2002. For the first nine months of 2003, Parker Drilling reported revenues of $228.9 million and a net loss of $97.3 million, or $1.04 per share, which includes a $54.0 million or $0.58 per share impairment for assets held for sale. For the first nine months of 2002, Parker Drilling reported revenues of $257.1 million and a net loss of $103.7 million, or $1.12 per share, which included a goodwill impairment provision of $73.1 million, or $0.79 per share. The loss from continuing operations for the first nine months of 2003 was $34.9 million or $0.37 per share compared to a loss from continuing operations of $9.6 million or $0.10 per share for the first nine months of 2002. Average utilization of international land rigs for continuing operations increased slightly during the third quarter of 2003 to 34 percent when compared to an average for the second quarter of 32 percent. However, the current utilization has increased to 42 percent due to the late-September mobilization of Rig 255 to Bangladesh and Rig 230 to Turkmenistan. Average utilization of Parker Drilling's Gulf of Mexico barge rigs decreased during the third quarter of 2003 to 40 percent compared to an average utilization of 55 percent in the second quarter of 2003. The current utilization has increased to 64 percent for the Gulf of Mexico barge rigs. Capital expenditures for the nine months ended September 30, 2003, were $23.8 million. Total debt was $569.4 million at September 30, 2003, and the company's cash balance was $81.4 million. During October the company completed a refinancing of its debt which extends the maturity of certain debt and provides additional liquidity to retire the 5.5% convertible notes due in 2004. The company issued $175.0 million of new 9.625% senior notes due 2013 and signed a new $150.0 million credit agreement. The credit agreement consists of a four-year $100.0 million term loan and a three-year $50.0 million revolver. The proceeds of the new 9.625% senior notes and an initial draw of $50.0 million on the term loan were used to retire the existing 9.75% senior notes due 2006 that had been tendered pursuant to a tender offer dated September 24, 2003. The 9.75% senior notes that were not tendered have been called and will be retired effective November 15, 2003. The revolving credit facility portion of the credit agreement replaces the existing $50.0 million revolving credit facility that would have expired in late October 2003. No funds have been drawn under the current revolving credit facility The company also reported that its jackup Rig 14J is still removed from service and is currently docked for evaluation following a September 11, 2003 incident in which the rig became partially submerged. The company expects losses to be covered by insurance. Parker Drilling has scheduled a conference call at 10 a.m. CST Oct. 31, 2003, to discuss third quarter 2003 results. Those interested in participating in the call may dial in at (303) 262-2127. The conference call replay can be accessed from noon CST Oct. 31, 2003, until 6 p.m. CST Nov. 7, 2003, by dialing (303) 590-3000 and using the access code 555062#. Alternatively, the call can be accessed live through the Investor Relations section of the Parker Web site at http://www.parkerdrilling.com. The archived call and the earnings release will be available on the Web for 12 months. This release contains certain statements that may be deemed to be "forward-looking statements" within the meaning of the Securities Acts. All statements, other than statements of historical facts, that address activities, events or developments that the company expects, projects, believes or anticipates will or may occur in the future, the outlook for rig utilization and dayrates, general industry conditions including bidding activity, future operating results of the company's rigs and rental tool operations, capital expenditures, expansion and growth opportunities, asset sales and other such matters, are forward-looking statements. Although the company believes that its expectations stated in this release are based on reasonable assumptions, actual results may differ from those expressed or implied in the forward-looking statements. For a more detailed discussion of risk factors, please refer to the company's reports filed with the SEC, and in particular, the report on Form 10-K for the year ended December 31, 2002. Each forward-looking statement speaks only as of the date of this release, and the company undertakes no obligation to publicly update or revise any forward-looking statement. -30- PARKER DRILLING COMPANY AND SUBSIDIARIES Consolidated Condensed Statement of Operations (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, ---------------------------- ---------------------------- 2003 2002 2003 2002 ------------ ------------ ------------ ------------ (Dollars in Thousands) DRILLING AND RENTAL REVENUES U.S. Drilling $ 13,872 $ 21,550 $ 49,593 $ 56,695 International Drilling 49,090 53,845 138,893 163,208 Rental Tools 14,054 11,852 40,366 37,206 ------------ ------------ ------------ ------------ TOTAL DRILLING AND RENTAL REVENUES 77,016 87,247 228,852 257,109 ------------ ------------ ------------ ------------ DRILLING AND RENTAL OPERATING EXPENSES U.S. Drilling 11,964 13,977 37,466 39,508 International Drilling 33,232 33,895 96,220 109,060 Rental Tools 5,860 5,255 16,868 16,650 Depreciation and Amortization 17,393 17,159 51,791 50,240 ------------ ------------ ------------ ------------ TOTAL DRILLING AND RENTAL OPERATING EXPENSES 68,449 70,286 202,345 215,458 ------------ ------------ ------------ ------------ DRILLING AND RENTAL OPERATING INCOME 8,567 16,961 26,507 41,651 ------------ ------------ ------------ ------------ Construction Contract Revenue 1,061 17,285 7,030 81,948 Construction Contract Expense 61 16,515 5,030 79,924 ------------ ------------ ------------ ------------ NET CONSTRUCTION CONTRACT OPERATING INCOME 1,000 770 2,000 2,024 ------------ ------------ ------------ ------------ General and Administrative Expense 4,079 6,097 14,485 18,583 Provision for Doubtful Accounts -- 1,140 -- 1,140 ------------ ------------ ------------ ------------ TOTAL OPERATING INCOME 5,488 10,494 14,022 23,952 ------------ ------------ ------------ ------------ OTHER INCOME AND (EXPENSE) Interest Expense (13,152) (13,312) (39,901) (38,409) Other Income (Expense) - Net 956 1,299 2,605 (1,282) ------------ ------------ ------------ ------------ TOTAL OTHER INCOME AND (EXPENSE) (12,196) (12,013) (37,296) (39,691) ------------ ------------ ------------ ------------ LOSS BEFORE INCOME TAXES (6,708) (1,519) (23,274) (15,739) ------------ ------------ ------------ ------------ INCOME TAX EXPENSE (BENEFIT) Current 3,905 2,657 11,646 7,602 Deferred -- (4,000) -- (13,700) ------------ ------------ ------------ ------------ TOTAL INCOME TAX EXPENSE (BENEFIT) 3,905 (1,343) 11,646 (6,098) ------------ ------------ ------------ ------------ LOSS FROM CONTINUING OPERATIONS (10,613) (176) (34,920) (9,641) Discontinued Operations, Net of Taxes 3,957 (7,844) (62,345) (20,937) Cumulative Effect of Change in Accounting Principle -- -- -- (73,144) ------------ ------------ ------------ ------------ NET LOSS $ (6,656) $ (8,020) $ (97,265) $ (103,722) ============ ============ ============ ============ LOSS PER SHARE - BASIC AND DILUTED Loss From Continuing Operations $ (0.11) $ (0.00) $ (0.37) $ (0.10) Discontinued Operations, Net of Taxes $ 0.04 $ (0.09) $ (0.67) $ (0.23) Cumulative Effect of Change in Accounting Principle $ -- $ -- $ -- $ (0.79) Net Loss $ (0.07) $ (0.09) $ (1.04) $ (1.12) AVERAGE COMMON SHARES OUTSTANDING Basic and Diluted 93,728,825 92,510,985 93,198,996 92,365,791
PARKER DRILLING COMPANY AND SUBSIDIARIES Consolidated Condensed Balance Sheets (Unaudited)
September 30, 2003 December 31, 2002 ------------------ ---------------- (Dollars in Thousands) ASSETS CURRENT ASSETS Cash and Cash Equivalents $ 81,409 $ 51,982 Accounts and Notes Receivable, Net 78,437 89,363 Rig Materials and Supplies 9,172 17,161 Other Current Assets 3,225 8,631 ------------------ ---------------- TOTAL CURRENT ASSETS 172,243 167,137 ------------------ ---------------- PROPERTY, PLANT AND EQUIPMENT, NET 406,648 641,278 ASSETS HELD FOR SALE 148,064 896 DEFERRED CHARGES AND OTHER ASSETS Goodwill, Net 115,983 115,983 Other Assets 21,826 28,031 ------------------ ---------------- TOTAL DEFERRED CHARGES AND OTHER ASSETS 137,809 144,014 ------------------ ---------------- TOTAL ASSETS $ 864,764 $ 953,325 ================== ================ LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Current Portion of Long-Term Debt $ 65,672 $ 6,486 Accounts Payable and Accrued Liabilities 62,659 50,742 Other Current Liabilities 10,152 4,347 ------------------ ---------------- TOTAL CURRENT LIABILITIES 138,483 61,575 ------------------ ---------------- LONG-TERM DEBT 503,688 583,444 DISCONTINUED OPERATIONS 7,072 -- OTHER LIABILITIES 11,021 7,680 STOCKHOLDERS' EQUITY 204,500 300,626 ------------------ ---------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 864,764 $ 953,325 ================== ================ Current Ratio 1.24 2.71 Total Debt as a % of capitalization 74% 66% Book Value per common share $ 2.18 $ 3.24
PARKER DRILLING COMPANY AND SUBSIDIARIES Selected Financial Data (Unaudited)
THREE MONTHS ENDED -------------------------------------------- SEPTEMBER 30, JUNE 30, ---------------------------- ------------ 2003 2002 2003 ------------ ------------ ------------ (Dollars in Thousands) DRILLING AND RENTAL REVENUES U.S. Drilling $ 13,872 $ 21,550 $ 18,076 International Land Drilling 31,245 31,146 23,678 International Offshore Drilling 17,845 22,699 18,413 Rental Tools 14,054 11,852 13,699 ------------ ------------ ------------ TOTAL DRILLING AND RENTAL REVENUES 77,016 87,247 73,866 ------------ ------------ ------------ DRILLING AND RENTAL OPERATING INCOME U.S. Drilling 1,908 7,573 4,673 International Land Drilling 10,321 13,008 7,007 International Offshore Drilling 5,537 6,942 4,443 Rental Tools 8,194 6,597 8,107 Depreciation and Amortization (17,393) (17,159) (17,256) ------------ ------------ ------------ TOTAL DRILLING AND RENTAL OPERATING INCOME 8,567 16,961 6,974 Construction Contract Operating Income 1,000 770 1,000 General and Administrative Expense (4,079) (6,097) (5,321) Provision for Doubtful Accounts -- (1,140) -- ------------ ------------ ------------ TOTAL OPERATING INCOME FROM CONTINUING OPERATIONS $ 5,488 $ 10,494 $ 2,653 ============ ============ ============
MARKETABLE RIG COUNT SUMMARY As of September 30, 2003
TOTAL ----- U.S. GULF OF MEXICO BARGE RIGS Workover 8 Intermediate 5 Deep 9 ----- TOTAL U.S. GULF OF MEXICO BARGE RIGS 22 ----- INTERNATIONAL LAND RIGS Asia Pacific 12 Africa/Middle East 3 CIS 9 ----- TOTAL INTERNATIONAL LAND RIGS 24 INTERNATIONAL BARGE RIGS Nigeria 4 Caspian Sea 1 ----- TOTAL INTERNATIONAL BARGE RIGS 5 ----- TOTAL INTERNATIONAL RIGS 29 ----- RIGS HELD FOR SALE U.S. Gulf of Mexico Platform Rigs 4 U.S. Gulf of Mexico Jackup Rigs (a) 6 Latin America Land Rigs 16 ----- TOTAL RIGS HELD FOR SALE 26 ----- TOTAL MARKETABLE RIGS 77 =====
(a) Rig 14J was removed from the Marketable Rig Count as of September 2003. -----END PRIVACY-ENHANCED MESSAGE-----