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)
<Table>
<Caption>
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
</Table>
PARKER DRILLING COMPANY AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Unaudited)
<Table>
<Caption>
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
</Table>
PARKER DRILLING COMPANY AND SUBSIDIARIES
Selected Financial Data
(Unaudited)
<Table>
<Caption>
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
============ ============ ============
</Table>
MARKETABLE RIG COUNT SUMMARY
As of September 30, 2003
<Table>
<Caption>
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
=====
</Table>
(a) Rig 14J was removed from the Marketable Rig Count as of September 2003.