FOR IMMEDIATE RELEASE Investor Contact: David Tucker 281-406-2370
April 27, 2004
PARKER DRILLING REPORTS FIRST QUARTER RESULTS
HOUSTON - For the quarter ended March 31, 2004, Parker Drilling Company (NYSE:
PKD) today reported revenues of $85.1 million and a net loss of $4.9 million, or
$0.05 per share, compared to a net loss of $16.2 million or $0.17 per share on
revenues of $78.0 million for the first quarter of 2003. The loss from
continuing operations for the first quarter of 2004 was $8.7 million or $0.09
per share compared to a loss from continuing operations of $10.6 million or
$0.11 per share for the first quarter of 2003.
First quarter average utilization of international land rigs for continuing
operations posted an increase to 55 percent from 48 percent during the fourth
quarter of 2003 and is favorable to the 35 percent reported for the first
quarter of 2003. Average utilization of Parker Drilling's Gulf of Mexico barge
rigs also increased during the first quarter of 2004 to 56 percent, compared to
an average utilization of 53 percent in the fourth quarter of 2003 and 52
percent for the first quarter of 2003. Current utilization is 55 percent for the
Gulf of Mexico barge rigs.
Effective with this earnings release, the Company is conforming its presentation
of international land rig utilization rates to the revenue day basis formula
reported in the Company's periodic reports filed with the SEC. The revenue day
utilization calculation reflects those rigs that are under contract and earning
any type of revenue, including operating, standby, moving, mobilization, or
demobilization revenue, as opposed to the operating day calculation which only
includes daily operating revenue. For historical information on this change see
the attached schedule to this earnings release or go to the section entitled
"Rig Utilization" on the Parker Web site, referenced below.
Capital expenditures for the three months ended March 31, 2004, were $5.3
million. Total debt was $556.2 million at March 31, 2004, and the Company's cash
balance was $93.5 million.
Parker has scheduled a conference call at 10 a.m. CDT (11 a.m. EDT) April 27,
2004 to discuss first quarter 2004 results. Those interested in participating in
the call may dial in at (303) 262-2175. The conference call replay can be
accessed from noon CDT April 27, 2004 until 6 p.m. CDT May 4, 2004, by dialing
(303) 590-3000 and using the access code 575527#. Alternatively, the call can be
accessed live through the Parker Web site at http://www.parkerdrilling.com. The
archived call 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, 2003. 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 March 31,
----------------------------
2004 2003
------------ ------------
(Dollars in Thousands)
DRILLING AND RENTAL REVENUES
U.S. Drilling $ 19,759 $ 17,645
International Drilling 50,241 47,712
Rental Tools 15,103 12,613
------------ ------------
TOTAL DRILLING AND RENTAL REVENUES 85,103 77,970
------------ ------------
DRILLING AND RENTAL OPERATING EXPENSES
U.S. Drilling 12,691 12,099
International Drilling 35,196 32,347
Rental Tools 6,613 5,416
Depreciation and Amortization 16,249 17,142
------------ ------------
TOTAL DRILLING AND RENTAL OPERATING EXPENSES 70,749 67,004
------------ ------------
DRILLING AND RENTAL OPERATING INCOME 14,354 10,966
------------ ------------
Construction Contract Revenue -- 2,266
Construction Contract Expense -- 2,266
------------ ------------
NET CONSTRUCTION CONTRACT OPERATING INCOME -- --
------------ ------------
General and Administrative Expense (6,042) (5,085)
Gain on Disposition of Assets, Net 652 451
------------ ------------
TOTAL OPERATING INCOME 8,964 6,332
------------ ------------
OTHER INCOME AND (EXPENSE)
Interest Expense (13,407) (13,444)
Loss on Extinguishment of Debt (316) --
Other Income (Expense) - Net 38 318
------------ ------------
TOTAL OTHER INCOME AND (EXPENSE) (13,685) (13,126)
------------ ------------
LOSS BEFORE INCOME TAXES (4,721) (6,794)
------------ ------------
INCOME TAX EXPENSE (BENEFIT)
Current 3,972 3,794
Deferred -- --
------------ ------------
TOTAL INCOME TAX EXPENSE (BENEFIT) 3,972 3,794
------------ ------------
LOSS FROM CONTINUING OPERATIONS (8,693) (10,588)
Discontinued Operations, Net of Taxes 3,829 (5,613)
------------ ------------
NET LOSS $ (4,864) $ (16,201)
============ ============
LOSS PER SHARE - BASIC AND DILUTED
Loss From Continuing Operations $ (0.09) $ (0.11)
Discontinued Operations, Net of Taxes $ 0.04 $ (0.06)
Net Loss $ (0.05) $ (0.17)
AVERAGE COMMON SHARES OUTSTANDING
Basic and Diluted 93,594,900 92,848,131
</Table>
PARKER DRILLING COMPANY AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Unaudited)
<Table>
<Caption>
March 31, 2004 December 31, 2003
----------------- -----------------
ASSETS (Dollars in Thousands)
CURRENT ASSETS
Cash and Cash Equivalents $ 93,546 $ 67,765
Accounts and Notes Receivable, Net 87,436 89,050
Rig Materials and Supplies 14,211 13,627
Other Current Assets 3,675 2,466
----------------- -----------------
TOTAL CURRENT ASSETS 198,868 172,908
----------------- -----------------
PROPERTY, PLANT AND EQUIPMENT, NET 375,778 387,664
ASSETS HELD FOR SALE 127,724 150,370
OTHER ASSETS
Goodwill 114,398 114,398
Other Assets 21,639 22,292
----------------- -----------------
TOTAL OTHER ASSETS 136,037 136,690
----------------- -----------------
TOTAL ASSETS $ 838,407 $ 847,632
================= =================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current Portion of Long-Term Debt $ 44,802 $ 60,225
Accounts Payable and Accrued Liabilities 81,198 68,404
----------------- -----------------
TOTAL CURRENT LIABILITIES 126,000 128,629
----------------- -----------------
LONG-TERM DEBT 511,366 511,400
DISCONTINUED OPERATIONS 5,673 6,421
OTHER LIABILITIES 6,295 8,379
STOCKHOLDERS' EQUITY 189,073 192,803
----------------- -----------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 838,407 $ 847,632
================= =================
Current Ratio 1.58 1.34
Total Long Term Debt as a % of capitalization 73% 73%
Book Value per common share $ 2.01 $ 2.05
</Table>
PARKER DRILLING COMPANY AND SUBSIDIARIES
Selected Financial Data
(Unaudited)
<Table>
<Caption>
THREE MONTHS ENDED
----------------------------------------
MARCH 31, DECEMBER 31,
------------------------ ------------
2004 2003 2003
---------- ---------- ------------
DRILLING AND RENTAL REVENUES (Dollars in Thousands)
U.S. Drilling $ 19,759 $ 17,645 $ 17,856
International Land Drilling 38,690 24,804 34,749
International Offshore Drilling 11,551 22,908 18,056
Rental Tools 15,103 12,613 14,271
---------- ---------- ------------
TOTAL DRILLING AND RENTAL REVENUES 85,103 77,970 84,932
---------- ---------- ------------
DRILLING AND RENTAL OPERATING EXPENSES
U.S. Drilling 12,691 12,099 10,274
International Land Drilling 25,053 16,155 24,163
International Offshore Drilling 10,143 16,192 11,631
Rental Tools 6,613 5,416 6,183
---------- ---------- ------------
DRILLING AND RENTAL OPERATING EXPENSES 54,500 49,862 52,251
---------- ---------- ------------
DRILLING AND RENTAL OPERATING INCOME
U.S. Drilling 7,068 5,546 7,582
International Land Drilling 13,637 8,649 10,586
International Offshore Drilling 1,408 6,716 6,425
Rental Tools 8,490 7,197 8,088
Depreciation and Amortization (16,249) (17,142) (17,099)
---------- ---------- ------------
TOTAL DRILLING AND RENTAL OPERATING INCOME 14,354 10,966 15,582
General and Administrative Expense (6,042) (5,085) (4,771)
Provision for Reduction in Carrying Value of Certain Assets -- -- (6,028)
Gain on Disposition of Assets, Net 652 451 2,594
---------- ---------- ------------
TOTAL OPERATING INCOME FROM CONTINUING OPERATIONS $ 8,964 $ 6,332 $ 7,377
========== ========== ============
</Table>
MARKETABLE RIG COUNT SUMMARY
AS OF MARCH 31, 2004
<Table>
<Caption>
TOTAL
-------
U.S. GULF OF MEXICO BARGE RIGS
Workover 7
Intermediate 5
Deep 9
-------
TOTAL U.S. GULF OF MEXICO BARGE RIGS 21
-------
INTERNATIONAL LAND RIGS
Asia Pacific 12
Africa/Middle East 2
CIS 8
-------
TOTAL INTERNATIONAL LAND RIGS 22
INTERNATIONAL BARGE RIGS
Nigeria 4
Caspian Sea 1
-------
TOTAL INTERNATIONAL BARGE RIGS 5
-------
TOTAL INTERNATIONAL RIGS 27
-------
RIGS HELD FOR SALE
U.S. Gulf of Mexico Platform Rigs 4
U.S. Gulf of Mexico Jackup Rigs 6
Latin America Land Rigs 16
-------
TOTAL RIGS HELD FOR SALE 26
-------
TOTAL MARKETABLE RIGS 74
=======
</Table>
PARKER DRILLING COMPANY AND SUBSIDIARIES
Revenue Day Utilization
(Unaudited)
<Table>
<Caption>
THREE MONTHS ENDED
---------------------------------------------------------------
2004 2003
--------- ---------------------------------------------------
Transition Zone Rig Data MARCH 31, DECEMBER 31, SEPTEMBER 30, JUNE 30, MARCH 31,
- -------------------------------------------------------- --------- ------------ ------------- -------- ---------
U.S. barge deep drilling:
Rigs available for service (1) 9.0 9.0 9.0 9.0 9.0
Utilization rate of rigs available for service (2) 89% 82% 61% 87% 82%
U.S. barge intermediate drilling:
Rigs available for service (1) 5.0 5.0 5.0 5.0 5.0
Utilization rate of rigs available for service (2) 27% 38% 31% 30% 21%
U.S. barge workover and shallow drilling:
Rigs available for service (1) 7.0 7.4 8.0 8.0 8.0
Utilization rate of rigs available for service (2) 33% 29% 23% 34% 39%
Total U.S. Gulf of Mexico barge rigs:
Rigs available for service (1) 21.0 21.4 22.0 22.0 22.0
Utilization rate of rigs available for service (2) 56% 53% 40% 55% 52%
International Rig Data
- --------------------------------------------------------
International land rigs:
Rigs available for service (1) 22.0 23.2 24.0 24.0 24.0
Utilization rate of rigs available for service (2) 55% 48% 39% 31% 35%
International barge drilling:
Rigs available for service (1) 5.0 5.0 5.0 5.0 5.0
Utilization rate of rigs available for service (2) 53% 77% 67% 80% 80%
Discontinued Operations
- --------------------------------------------------------
Jackups:
Rigs available for service (1) 6.0 6.0 6.8 7.0 7.0
Utilization rate of rigs available for service (2) 72% 84% 89% 82% 75%
Platforms:
Rigs available for service (1) 4.0 4.0 4.0 4.0 4.0
Utilization rate of rigs available for service (2) 25% 14% 25% 25% 8%
Latin America:
Rigs available for service (1) 16.0 16.0 16.3 17.0 17.0
Utilization rate of rigs available for service (2) 22% 20% 15% 16% 21%
(1) The number of rigs available for service is determined by calculating the number of days each rig was in our fleet and was under
contract or available for contract. For example, a rig under contract or available for contract for six months of a year is 0.5 rigs
available for service for such year. Our method of computation of rigs available for service may or may not be comparable to other
similarly titled measures of other companies.
(2) Rig utilization rates are based on a weighted average basis assuming total days availability for all rigs available for service.
Rigs acquired or disposed of are treated as added to or removed from the rig fleet as of the date of acquisition or disposal. Rigs
that are in operation or fully or partially staffed and on a revenue-producing standby status are considered to be utilized. Rigs
under contract that generate revenues during moves between locations or during mobilization or demobilization are also considered to
be utilized. Our method of computation of revenue day rig utilization may or may not be comparable to other similarly titled
measures of other companies.
</Table>
PARKER DRILLING COMPANY AND SUBSIDIARIES
Operating Day Utilization
(Unaudited)
<Table>
<Caption>
THREE MONTHS ENDED
---------------------------------------------------------------
2004 2003
--------- ---------------------------------------------------
Transition Zone Rig Data MARCH 31, DECEMBER 31, SEPTEMBER 30, JUNE 30, MARCH 31,
- ------------------------------------------------------- --------- ------------ ------------- -------- ---------
U.S. barge deep drilling:
Rigs available for service (1) 9.0 9.0 9.0 9.0 9.0
Utilization rate of rigs available for service (2) 85% 77% 57% 84% 77%
U.S. barge intermediate drilling:
Rigs available for service (1) 5.0 5.0 5.0 5.0 5.0
Utilization rate of rigs available for service (2) 24% 36% 30% 27% 20%
U.S. barge workover and shallow drilling:
Rigs available for service (1) 7.0 7.4 8.0 8.0 8.0
Utilization rate of rigs available for service (2) 30% 26% 22% 33% 36%
Total U.S. Gulf of Mexico barge rigs:
Rigs available for service (1) 21.0 21.4 22.0 22.0 22.0
Utilization rate of rigs available for service (2) 52% 50% 38% 52% 49%
International Rig Data
- -------------------------------------------------------
International land rigs:
Rigs available for service (1) 22.0 23.2 24.0 24.0 24.0
Utilization rate of rigs available for service (2) 44% 36% 33% 31% 29%
International barge drilling:
Rigs available for service (1) 5.0 5.0 5.0 5.0 5.0
Utilization rate of rigs available for service (2) 38% 47% 47% 71% 79%
Discontinued Operations
- -------------------------------------------------------
Jackups:
Rigs available for service (1) 6.0 6.0 6.8 7.0 7.0
Utilization rate of rigs available for service (2) 69% 82% 85% 80% 73%
Platforms:
Rigs available for service (1) 4.0 4.0 4.0 4.0 4.0
Utilization rate of rigs available for service (2) 25% 7% 23% 23% 5%
Latin America:
Rigs available for service (1) 16.0 16.0 16.3 17.0 17.0
Utilization rate of rigs available for service (2) 12% 19% 13% 12% 14%
(1) The number of rigs available for service is determined by calculating the number of days each rig was in our fleet and was under
contract or available for contract. For example, a rig under contract or available for contract for six months of a year is 0.5 rigs
available for service for such year. Our method of computation of rigs available for service may or may not be comparable to other
similarly titled measures of other companies.
(2) Rig utilization rates are based on a weighted average basis assuming total days availability for all rigs available for service.
Rigs acquired or disposed of are treated as added to or removed from the rig fleet as of the date of acquisition or disposal. Rigs
that are earning an operating rate or a rate in excess of 50% of the operating rate are considered to be utilized. Our method of
computation of operating day rig utilization may or may not be comparable to other similarly titled measures of other companies.
</Table>