EXHIBIT 99.1
FOR IMMEDIATE RELEASE Investor Contact: David Tucker 281-406-2370
August 4, 2003 Media Contact: Rose Bratton 281-406-2212
PARKER UPDATES ON ASSET SALES AND REPORTS SECOND QUARTER RESULTS
HOUSTON - Parker Drilling Company (NYSE:PKD) announced today that while to date
it has not met its self-imposed goal for asset sales, it continues to expect to
reach agreements to sell a significant package of assets. The assets identified
for sale include 16 land rigs in Latin America and seven jackup and four
platform rigs in the Gulf of Mexico. The company has been in discussions with a
third party and had hoped to sign a definitive agreement for the sale of these
assets on Friday, August 1, 2003; however, a request for a material change in
terms by the third party was rejected by the company and has resulted in a
withdrawal of the offer by such party.
"While we are disappointed that the termination of these negotiations will delay
our asset sale goals, we anticipate concluding transactions that will achieve a
number of our goals," said Robert L. Parker Jr., president and chief executive
officer. "The company remains committed to reducing its debt levels by
approximately $200 million from assets sales and cash flow.
"In connection with the ultimate sale of an asset package we intend to access
the capital markets to raise additional funds to combine with the sale proceeds
that will enable us to restructure our debt maturity schedule in a manner that
addresses our debt maturities for both 2004 and 2006. The company also intends
to secure a new bank credit facility, which will replace the existing facility
that expires in October 2003.
"For the future, we will concentrate on expanding the company's presence in
certain international oil and gas markets consistent with our long term
strategic plan, such as the CIS, the Middle East and the Far East. These efforts
will be in addition to our continued involvement in the Gulf of Mexico through
our barge rig operations, Quail Tools and related opportunities," Parker said.
Parker Drilling will continue its efforts to reduce its debt-to-equity ratio to
the range of 50 to 55 percent through a variety of alternatives, including
additional asset sales, use of cash and non-dilutive equity transactions.
Second Quarter Results:
For the quarter ended June 30, 2003, Parker Drilling reported revenues of $73.9
million and a net loss of $74.4 million, or $0.80 per share, compared to a net
loss of $11.5 million or $0.12 per share on revenues of $83.7 million for the
second quarter of 2002. The net loss includes those assets identified as a part
of the expected sale. These assets have been reclassified as discontinued
operations and reflect a loss of $60.7 million or $0.65 per share for the
quarter, including a $54.0 million impairment provision. For the quarter ended
June 30, 2003, the net loss from continuing operations was
$13.7 million or $0.15 per share compared to a net loss of $7.7 million or $0.08
per share for the second quarter of 2002.
For the first six months of 2003, Parker Drilling reported revenues of $151.8
million and a loss of $90.6 million, or $0.98 per share, including a loss from
discontinued operations of $66.3 million or $0.72 per share. For the first six
months of 2002, Parker Drilling reported a net loss of $95.7 million, or $1.04
per share on revenues of $169.9 million. The loss for 2002 included impairment
to goodwill of $73.1 million or $0.79 per share. The net loss from continuing
operations for the first six months of 2003 was $24.3 million or $0.26 per share
compared to a loss of $9.5 million or $0.10 per share for the first six months
of 2002.
Drilling and rental operating income from continuing operations was $24.2
million for the second quarter of 2003. This compares to drilling and rental
operating income of $28.1 million for the first quarter of 2003, and $27.9
million for the second quarter of 2002.
Utilization of international land rigs for continuing operations is currently 38
percent. Average utilization was 32 percent in the second quarter of 2003
compared to average utilization of 29 percent for the first quarter of 2003.
Utilization of Parker Drilling's Gulf of Mexico rigs for continuing operations
is currently 36 percent. Average utilization was 55 percent in the second
quarter of 2003 compared to an average utilization of 52 percent in the first
quarter of 2003.
Capital expenditures for the three months and six months ended June 30, 2003,
were $8.3 million and $15.2 million, respectively. Total debt was $571.3 million
at June 30, 2003, and the company's cash balance was $66.0 million.
As a result of the proposed asset sales and the slower than expected turnaround
in utilization and dayrates, the company is revising its 2003 estimated loss
from continuing operations to $0.38 - $0.42 per share. The revised estimate
includes costs associated with the proposed debt restructuring.
Parker Drilling has scheduled a conference call at 10 a.m. CDT August 4, 2003,
to discuss second 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 CDT August 4, 2003, until 6 p.m. CDT August 11, 2003, by dialing (303)
590-3000 and using the access code 544549#. 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 will be available on the Web
for 90 days, and the earnings release will be available for no less than 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.
PARKER DRILLING COMPANY AND SUBSIDIARIES
Consolidated Condensed Statement of Operations
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
---------------------------- ---------------------------
2003 2002 2003 2002
------------ ------------ ----------- -------------
(Dollars in Thousands)
DRILLING AND RENTAL REVENUES
U.S. Drilling $ 18,076 $ 18,900 $ 35,721 $ 35,145
International Drilling 42,091 51,516 89,803 109,363
Rental Tools 13,699 13,243 26,312 25,354
------------ ------------ ------------ ------------
TOTAL DRILLING AND RENTAL REVENUES 73,866 83,659 151,836 169,862
------------ ------------ ------------ ------------
DRILLING AND RENTAL OPERATING EXPENSES
U.S. Drilling 13,403 13,580 25,502 25,531
International Drilling 30,641 36,401 62,988 75,165
Rental Tools 5,592 5,786 11,008 11,395
------------ ------------ ------------ ------------
TOTAL DRILLING AND RENTAL OPERATING EXPENSES 49,636 55,767 99,498 112,091
------------ ------------ ------------ ------------
DRILLING AND RENTAL OPERATING INCOME 24,230 27,892 52,338 57,771
------------ ------------ ------------ ------------
Construction Contract Revenue 3,703 47,011 5,969 64,663
Construction Contract Expense 2,703 47,011 4,969 63,409
------------ ------------ ------------ ------------
NET CONSTRUCTION CONTRACT OPERATING INCOME 1,000 -- 1,000 1,254
------------ ------------ ------------ ------------
Depreciation and Amortization 17,256 16,960 34,398 33,081
General and Administrative Expense 5,321 5,573 10,406 12,486
------------ ------------ ------------ ------------
TOTAL OPERATING INCOME 2,653 5,359 8,534 13,458
------------ ------------ ------------ ------------
OTHER INCOME AND (EXPENSE)
Interest Expense (13,305) (12,633) (26,749) (25,097)
Other Income (Expense) - Net 880 (3,508) 1,649 (2,581)
------------ ------------ ------------ ------------
TOTAL OTHER INCOME AND (EXPENSE) (12,425) (16,141) (25,100) (27,678)
------------ ------------ ------------ ------------
LOSS BEFORE INCOME TAXES (9,772) (10,782) (16,566) (14,220)
------------ ------------ ------------ ------------
INCOME TAX EXPENSE (BENEFIT)
Current 3,947 1,390 7,741 4,945
Deferred -- (4,500) -- (9,700)
------------ ------------ ------------ ------------
TOTAL INCOME TAX EXPENSE (BENEFIT) 3,947 (3,110) 7,741 (4,755)
------------ ------------ ------------ ------------
LOSS FROM CONTINUING OPERATIONS (13,719) (7,672) (24,307) (9,465)
Discontinued Operations, Net of Taxes (60,689) (3,817) (66,302) (13,093)
Cumulative Effect of Change in Accounting Principle -- -- -- (73,144)
------------ ------------ ------------ ------------
NET LOSS $ (74,408) $ (11,489) $ (90,609) $ (95,702)
============ ============ ============ ============
LOSS PER SHARE - BASIC AND DILUTED
Loss From Continuing Operations $ (0.15) $ (0.08) $ (0.26) $ (0.10)
Discontinued Operations, Net of Taxes $ (0.65) $ (0.04) $ (0.72) $ (0.15)
Cumulative Effect of Change in Accounting Principle $ -- $ -- $ -- $ (0.79)
Net Loss $ (0.80) $ (0.12) $ (0.98) $ (1.04)
AVERAGE COMMON SHARES OUTSTANDING
Basic and Diluted 93,011,361 92,356,482 92,929,914 92,292,205
PARKER DRILLING COMPANY AND SUBSIDIARIES
Consolidated Condensed Balance Sheet
(Unaudited)
June 30, 2003 December 31, 2002
------------- -----------------
(Dollars in Thousands)
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents $ 65,969 $ 51,982
Accounts and Notes Receivable, Net 83,011 89,363
Rig Materials and Supplies 13,376 17,161
Other Current Assets 2,324 8,631
-------- --------
TOTAL CURRENT ASSETS 164,680 167,137
-------- --------
PROPERTY, PLANT AND EQUIPMENT, NET 420,031 641,278
DISCONTINUED OPERATIONS 145,626 --
DEFERRED CHARGES AND OTHER ASSETS
Goodwill, Net 115,983 115,983
Other Assets 19,188 28,927
-------- --------
TOTAL DEFERRED CHARGES AND OTHER ASSETS 135,171 144,910
-------- --------
TOTAL ASSETS $865,508 $953,325
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable and Accrued Liabilities $ 56,928 $ 50,742
Current Maturities of Long-Term Debt 6,169 6,486
Other Current Liabilities 8,595 4,347
-------- --------
TOTAL CURRENT LIABILITIES 71,692 61,575
-------- --------
LONG-TERM DEBT 565,168 583,444
DISCONTINUED OPERATIONS 7,699 --
OTHER LIABILITIES 10,182 7,680
STOCKHOLDERS' EQUITY 210,767 300,626
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $865,508 $953,325
======== ========
Current Ratio 2.30 2.71
Total Debt as a % of capitalization 73% 66%
Book Value per common share $ 2.26 $ 3.24
PARKER DRILLING COMPANY AND SUBSIDIARIES
Selected Financial Data
(Unaudited)
THREE MONTHS ENDED
------------------------------------------
JUNE 30, MARCH 31,
------------------------ ---------
2003 2002 2003
-------- -------- --------
(Dollars in Thousands)
DRILLING AND RENTAL REVENUES
U.S. Drilling $ 18,076 $ 18,900 $ 17,645
International Land Drilling 23,678 29,331 24,804
International Offshore Drilling 18,413 22,185 22,908
Rental Tools 13,699 13,243 12,613
-------- -------- --------
TOTAL DRILLING AND RENTAL REVENUES 73,866 83,659 77,970
-------- -------- --------
DRILLING AND RENTAL OPERATING EXPENSES
U.S. Drilling 13,403 13,580 12,099
International Land Drilling 16,671 18,711 16,155
International Offshore Drilling 13,970 17,690 16,192
Rental Tools 5,592 5,786 5,416
-------- -------- --------
TOTAL DRILLING AND RENTAL OPERATING EXPENSES 49,636 55,767 49,862
-------- -------- --------
DRILLING AND RENTAL OPERATING INCOME
U.S. Drilling 4,673 5,320 5,546
International Land Drilling 7,007 10,620 8,649
International Offshore Drilling 4,443 4,495 6,716
Rental Tools 8,107 7,457 7,197
-------- -------- --------
TOTAL DRILLING AND RENTAL OPERATING INCOME 24,230 27,892 28,108
Construction Contract Operating Income 1,000 -- --
-------- -------- --------
TOTAL OPERATING INCOME FROM CONTINUING OPERATIONS $ 25,230 $ 27,892 $ 28,108
======== ======== ========
Marketable Rig Count Summary
As of June 30, 2003
TOTAL
------------
U.S. GULF OF MEXICO BARGE RIGS
Workover 8
Intermediate 5
Deep 9
------------
TOTAL U.S. GULF OF MEXICO BAR GE 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 7
Latin America Land Rigs (a) 17
------------
TOTAL RIGS HELD FOR SALE 28
TOTAL MARKETABLE RIGS 79
============
(a) The sale of one Latin America land rig was finalized mid July, 2003.
As of July 31st 16 land rigs remain in Latin America.