EXHIBIT 99
FOR IMMEDIATE RELEASE Investor Contact: David Tucker 281-406-2370
August 3, 2004
PARKER DRILLING REPORTS SECOND QUARTER RESULTS
HOUSTON - For the quarter ended June 30, 2004, Parker Drilling Company (NYSE:
PKD) today reported revenues of $87.9 million and a net loss of $13.5 million,
or $0.14 per share, compared to a net loss of $74.4 million or $0.80 per share
on revenues of $79.7 million for the second quarter of 2003. The loss from
continuing operations for the second quarter of 2004 was $16.0 million or $0.17
per share compared to a loss from continuing operations of $16.4 million or
$0.18 per share for the second quarter of 2003.
Included in the second quarter loss were non-routine costs totaling $10.3
million or $0.11 per share. Reported earnings for both current year and prior
year reflect a reclassification of Latin America Operations from discontinued
operations to continuing operations, due primarily to the Company obtaining a
new contract in Mexico utilizing seven of the rigs previously classified as
discontinued operations. The reclassification resulted in an impairment of $5.1
million during the second quarter of 2004. In addition, the Company also
incurred other non-routine costs including personnel severance costs, an
adjustment to a life insurance asset and an additional Value Added Tax
assessment in Nigeria.
For the first six months of 2004, Parker Drilling reported revenues of $178.8
million and a net loss of $18.4 million or $0.20 per share. For the first six
months of 2003, Parker Drilling reported revenues of $164.2 million and a net
loss of $90.6 million or $0.98 per share, which included a $54.0 million or
$0.58 per share impairment for assets held for sale. The loss from continuing
operations for the first six months of 2004 was $23.6 million or $0.25 per share
compared to a loss from continuing operations of $28.5 million or $0.31 per
share for the first six months of 2003.
Second quarter average utilization of international land rigs rose to 43 percent
from 41 percent during the first quarter of 2004, a significant increase from
the 25 percent reported for the second quarter of 2003. International land rig
utilization reflects a reclassification of Latin America Operations from
discontinued operations to continuing operations. Average utilization of Parker
Drilling's Gulf of Mexico barge rigs also increased during the second quarter of
2004 to 60 percent, compared to an average utilization of 56 percent in the
first quarter of 2004 and 55 percent for the second quarter of 2003. Current
utilization has since increased to 70 percent for the Gulf of Mexico barge rigs.
Quarterly utilization information can be accessed in the section entitled "Rig
Utilization" on the Parker Web site, referenced below.
Capital expenditures for the six months ended June 30, 2004, were $15.7 million.
Total debt was $525.8 million at June 30, 2004, and the Company's cash balance
was $42.3 million.
Parker has scheduled a conference call at 10 a.m. CDT (11 a.m. EDT) August 3,
2004 to discuss second 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 August 3, 2004, until 6
p.m. CDT August 10, 2004, by dialing (303) 590-3000 and using the access code
11002920#. Alternatively, the call can be accessed live through the Parker Web
site at http://www.parkerdrilling.com. An archive of the 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 Statements of Operations
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
---------------------------- ----------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
(Dollars in Thousands)
DRILLING AND RENTAL REVENUES
U.S. Drilling $ 20,662 $ 18,076 $ 40,421 $ 35,721
International Drilling 50,515 47,890 106,552 102,144
Rental Tools 16,704 13,699 31,807 26,312
------------ ------------ ------------ ------------
TOTAL DRILLING AND RENTAL REVENUES 87,881 79,665 178,780 164,177
------------ ------------ ------------ ------------
DRILLING AND RENTAL OPERATING EXPENSES
U.S. Drilling 12,506 13,403 25,197 25,502
International Drilling 38,503 36,385 78,394 74,055
Rental Tools 6,712 5,592 13,325 11,008
Depreciation and Amortization 16,544 19,592 32,793 39,130
------------ ------------ ------------ ------------
TOTAL DRILLING AND RENTAL OPERATING EXPENSES 74,265 74,972 149,709 149,695
------------ ------------ ------------ ------------
DRILLING AND RENTAL OPERATING INCOME 13,616 4,693 29,071 14,482
------------ ------------ ------------ ------------
Construction Contract Revenue -- 3,703 -- 5,969
Construction Contract Expense -- 2,703 -- 4,969
------------ ------------ ------------ ------------
NET CONSTRUCTION CONTRACT OPERATING INCOME -- 1,000 -- 1,000
------------ ------------ ------------ ------------
General and Administrative Expense (6,992) (5,321) (13,034) (10,406)
Provision for Reduction in Carrying Value of Certain Assets (6,558) -- (6,558) --
Gain on Disposition of Assets, Net 346 135 1,069 811
------------ ------------ ------------ ------------
TOTAL OPERATING INCOME 412 507 10,548 5,887
------------ ------------ ------------ ------------
OTHER INCOME AND (EXPENSE)
Interest Expense (13,468) (13,305) (26,875) (26,749)
Loss on Extinguishment of Debt (262) -- (578) --
Other Income (Expense) - Net 713 773 755 1,133
------------ ------------ ------------ ------------
TOTAL OTHER INCOME AND (EXPENSE) (13,017) (12,532) (26,698) (25,616)
------------ ------------ ------------ ------------
LOSS BEFORE INCOME TAXES (12,605) (12,025) (16,150) (19,729)
Income Tax Expense 3,417 4,404 7,466 8,754
------------ ------------ ------------ ------------
LOSS FROM CONTINUING OPERATIONS (16,022) (16,429) (23,616) (28,483)
Discontinued Operations, Net of Taxes 2,497 (57,979) 5,227 (62,126)
------------ ------------ ------------ ------------
NET LOSS $ (13,525) $ (74,408) $ (18,389) $ (90,609)
============ ============ ============ ============
EARNINGS (LOSS) PER SHARE - BASIC AND DILUTED
Loss From Continuing Operations $ (0.17) $ (0.18) $ (0.25) $ (0.31)
Discontinued Operations, Net of Taxes $ 0.03 $ (0.62) $ 0.05 $ (0.67)
Net Loss $ (0.14) $ (0.80) $ (0.20) $ (0.98)
AVERAGE COMMON SHARES OUTSTANDING
Basic and Diluted 94,029,536 93,011,361 93,812,055 92,929,914
PARKER DRILLING COMPANY AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Unaudited)
June 30, December 31,
2004 2003
-------- ------------
(Dollars in Thousands)
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents $ 42,271 $ 67,765
Accounts and Notes Receivable, Net 93,769 89,050
Rig Materials and Supplies 17,751 13,627
Other Current Assets 10,895 2,466
-------- --------
TOTAL CURRENT ASSETS 164,686 172,908
-------- --------
PROPERTY, PLANT AND EQUIPMENT, NET 406,123 387,664
ASSETS HELD FOR SALE 72,171 150,370
OTHER ASSETS
Goodwill 114,398 114,398
Other Assets 25,492 22,292
-------- --------
TOTAL OTHER ASSETS 139,890 136,690
-------- --------
TOTAL ASSETS $782,870 $847,632
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current Portion of Long-Term Debt $ 14,490 $ 60,225
Accounts Payable and Accrued Liabilities 72,345 68,404
-------- --------
TOTAL CURRENT LIABILITIES 86,835 128,629
-------- --------
LONG-TERM DEBT 511,333 511,400
DISCONTINUED OPERATIONS 1,679 6,421
OTHER LIABILITIES 7,458 8,379
STOCKHOLDERS' EQUITY 175,565 192,803
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $782,870 $847,632
======== ========
Current Ratio 1.90 1.34
Total Long Term Debt as a % of capitalization 74% 73%
Book Value per common share $ 1.86 $ 2.05
PARKER DRILLING COMPANY AND SUBSIDIARIES
Selected Financial Data
(Unaudited)
THREE MONTHS ENDED
-------------------------------------------
JUNE 30, MARCH 31,
------------------------- --------
2004 2003 2004
-------- -------- --------
(Dollars in Thousands)
DRILLING AND RENTAL REVENUES
U.S. Drilling $ 20,662 $ 18,076 $ 19,759
International Land Drilling 41,120 29,477 44,486
International Offshore Drilling 9,395 18,413 11,551
Rental Tools 16,704 13,699 15,103
-------- -------- --------
Total Drilling and Rental Revenues 87,881 79,665 90,899
-------- -------- --------
DRILLING AND RENTAL OPERATING EXPENSES
U.S. Drilling 12,506 13,403 12,691
International Land Drilling 26,781 22,415 29,748
International Offshore Drilling 11,722 13,970 10,143
Rental Tools 6,712 5,592 6,613
-------- -------- --------
Drilling and Rental Operating Expenses 57,721 55,380 59,195
-------- -------- --------
DRILLING AND RENTAL OPERATING INCOME
U.S. Drilling 8,156 4,673 7,068
International Land Drilling 14,339 7,062 14,738
International Offshore Drilling (2,327) 4,443 1,408
Rental Tools 9,992 8,107 8,490
Depreciation and Amortization (16,544) (19,592) (16,249)
-------- -------- --------
Total Drilling and Rental Operating Income 13,616 4,693 15,455
Net Construction Contract Operating Income -- 1,000 --
General and Administrative Expense (6,992) (5,321) (6,042)
Provision for Reduction in Carrying Value of Certain Assets (6,558) -- --
Gain on Disposition of Assets, Net 346 135 723
-------- -------- --------
TOTAL OPERATING INCOME FROM CONTINUING OPERATIONS $ 412 $ 507 $ 10,136
======== ======== ========
Marketable Rig Count Summary
As of June 30, 2004
TOTAL
---------
U.S. Gulf of Mexico Barge Rigs
Workover 7
Intermediate 5
Deep 8
---
Total U.S. Gulf of Mexico Barge Rigs 20
---
International Land Rigs
Asia Pacific 12
Africa/Middle East 2
Latin America 16
CIS 8
---
Total International Land Rigs 38
International Barge Rigs
Mexico 1
Nigeria 4
Caspian Sea 1
---
Total International Barge Rigs 6
---
Total International Rigs 44
---
Rigs Held for Sale
U.S. Gulf of Mexico Platform Rigs 4
U.S. Gulf of Mexico Jackup Rigs 6
---
Total Rigs Held for Sale (a) 10
---
Total Marketable Rigs 74
===
(a) As of August 2, 2004 four platform rigs and five jackup rigs were sold.