FOR IMMEDIATE RELEASE Investor Contact: David Tucker 281-406-2370
Media Contact: Marianne Gooch 281-406-2212
PARKER DRILLING REPORTS SOLID EARNINGS IMPROVEMENT IN FIRST QUARTER
HOUSTON, May 2, 2005 - Parker Drilling Company (NYSE: PKD) today reported net
income of $3.9 million, or $0.04 per share, on revenues of $120.2 million for
the first quarter ended March 31, 2005, compared to a net loss of $4.9 million
or $0.05 per share on revenues of $90.9 million for the first quarter of 2004.
The first quarter of 2005 included certain non-routine items that negatively
impacted earnings by $0.01 per share. The non-routine items included the premium
paid on debt extinguishment, expense related to the vesting of restricted shares
partially offset by the change in fair value of derivatives.
The average utilization of international land rigs for the first quarter of
2005 was 67 percent, which is a significant improvement to the 46 percent
reported for the first quarter of 2004. Current utilization is 76 percent for
international land rigs. Average utilization of Parker Drilling's Gulf of Mexico
barge rigs for the first quarter of 2005 was 77 percent, which is an increase
from the 62 percent reported for the first quarter of 2004. Dayrates on Gulf of
Mexico barges increased an average of 24 percent for the first quarter of 2005
compared to the same period of the prior year. A portion of the change in
utilization for the Gulf of Mexico was due to the transfer of the idle barge rig
72 from Nigeria to the Gulf of Mexico. The rig was refurbished during the first
quarter and began work on a new contract last week. Current utilization is 79
percent for Gulf of Mexico barge rigs.
"This quarter marks the first time we have reported net income since 2001.
This return to profitability is the result of our ongoing restructuring of our
balance sheet and asset focus. Our improved earnings are due to continued strong
utilization enhanced by increasing dayrates in our Gulf of Mexico barge fleet,
strong performance from our premium rental tools business, Quail Tools, and
reduced interest expense. In addition to the positive earnings for the quarter,
we generated sufficient cash to increase the call for redemption on April 21,
2005 of our 10 1/8% Senior Notes to $65 million, by approximately $9.5 million
above the proceeds from the add-on financing to our 9 5/8% Senior Notes," said
Bobby Parker, president and chief executive officer.
Capital expenditures for the three months ended March 31, 2005, were $12.6
million. Total debt was $456.0 million at March 31, 2005, and the Company's cash
balance was $66.3 million.
Parker has scheduled a conference call at 10 a.m. CDT (11 a.m. EDT) May 2
to discuss first quarter 2005 results. Those interested in participating in the
call may dial in at (303) 262-2137. The conference call replay can be accessed
from noon CDT May 2, 2005 through May 9, 2005, by dialing (303) 590-3000 and
using the access code 11027810#. 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.
Parker Drilling is a Houston-based, global energy company specializing in
offshore drilling and work over services in the Gulf of Mexico and international
land and offshore markets. Parker also owns Quail Tools, a provider of premium
industry rental tools. Parker Drilling employs approximately 3,000 people
worldwide, and has 56 marketed rigs.
###
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, 2004. 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 Statements of Operations
(Unaudited)
Three Months Ended March 31,
--------------------------------
2005 2004
------------ ------------
(Dollars in Thousands)
DRILLING AND RENTAL REVENUES
U.S. Drilling $ 27,117 $ 19,759
International Drilling 72,172 56,037
Rental Tools 20,954 15,103
------------ ------------
TOTAL DRILLING AND RENTAL REVENUES 120,243 90,899
------------ ------------
DRILLING AND RENTAL OPERATING EXPENSES
U.S. Drilling 14,388 12,691
International Drilling 55,803 39,891
Rental Tools 8,185 6,613
Depreciation and Amortization 16,876 16,249
------------ ------------
TOTAL DRILLING AND RENTAL OPERATING EXPENSES 95,252 75,444
------------ ------------
DRILLING AND RENTAL OPERATING INCOME 24,991 15,455
------------ ------------
General and Administrative Expense (6,976) (6,042)
Gain on Disposition of Assets, Net 552 723
------------ ------------
TOTAL OPERATING INCOME 18,567 10,136
------------ ------------
OTHER INCOME AND (EXPENSE)
Interest Expense (11,056) (13,407)
Change in Fair Value of Derivative Position 1,607 --
Loss on Extinguishment of Debt (1,429) (316)
Other Income (Expense) - Net 1,001 42
------------ ------------
TOTAL OTHER INCOME AND (EXPENSE) (9,877) (13,681)
------------ ------------
INCOME (LOSS) BEFORE INCOME TAXES 8,690 (3,545)
Income Tax Expense 4,852 4,049
------------ ------------
INCOME (LOSS) FROM CONTINUING OPERATIONS 3,838 (7,594)
Discontinued Operations, Net of Taxes 91 2,730
------------ ------------
NET INCOME (LOSS) $ 3,929 $ (4,864)
============ ============
EARNINGS (LOSS) PER SHARE - BASIC
Income (Loss) From Continuing Operations $ 0.04 $ (0.08)
Discontinued Operations, Net of Taxes $ 0.00 $ 0.03
Net Income (Loss) $ 0.04 $ (0.05)
EARNINGS (LOSS) PER SHARE - DILUTED
Income (Loss) From Continuing Operations $ 0.04 $ (0.08)
Discontinued Operations, Net of Taxes $ 0.00 $ 0.03
Net Income (Loss) $ 0.04 $ (0.05)
AVERAGE COMMON SHARES OUTSTANDING
Basic 94,948,637 93,594,900
Diluted 96,145,661 93,594,900
</Table>
PARKER DRILLING COMPANY AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Unaudited)
March 31, 2005 December 31, 2004
-------------- -----------------
(Dollars in Thousands)
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents $ 66,265 $ 44,267
Accounts and Notes Receivable, Net 104,545 99,315
Rig Materials and Supplies 20,210 19,206
Deferred Costs 11,297 13,546
Other Current Assets 12,572 9,818
-------- --------
TOTAL CURRENT ASSETS 214,889 186,152
-------- --------
PROPERTY, PLANT AND EQUIPMENT, NET 377,457 382,824
ASSETS HELD FOR SALE 2,322 23,665
OTHER ASSETS
Goodwill 107,606 107,606
Other Assets 24,207 26,343
-------- --------
TOTAL OTHER ASSETS 131,813 133,949
-------- --------
TOTAL ASSETS $726,481 $726,590
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current Portion of Long-Term Debt $ -- $ 24
Accounts Payable and Accrued Liabilities 109,046 87,329
-------- --------
TOTAL CURRENT LIABILITIES 109,046 87,353
-------- --------
LONG-TERM DEBT 455,951 481,039
OTHER LIABILITIES 6,013 9,281
STOCKHOLDERS' EQUITY 155,471 148,917
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $726,481 $726,590
======== ========
Current Ratio 1.97 2.13
Total Long Term Debt as a Percent of Capitalization 75% 76%
Book Value Per Common Share $ 1.63 $ 1.57
</Table>
PARKER DRILLING COMPANY AND SUBSIDIARIES
Selected Financial Data
(Unaudited)
THREE MONTHS ENDED
-------------------------------------
MARCH 31, DECEMBER 31,
---------------------- ------------
2005 2004 2004
--------- --------- ---------
(Dollars in Thousands)
DRILLING AND RENTAL REVENUES
U.S. Drilling $ 27,117 $ 19,759 $ 25,303
International Land Drilling 56,552 44,486 56,502
International Offshore Drilling 15,620 11,551 8,106
Rental Tools 20,954 15,103 19,889
--------- --------- ---------
Total Drilling and Rental Revenues 120,243 90,899 109,800
--------- --------- ---------
DRILLING AND RENTAL OPERATING EXPENSES
U.S. Drilling 14,388 12,691 15,530
International Land Drilling 42,322 29,748 40,727
International Offshore Drilling 13,481 10,143 5,506
Rental Tools 8,185 6,613 8,154
--------- --------- ---------
Drilling and Rental Operating Expenses 78,376 59,195 69,917
--------- --------- ---------
DRILLING AND RENTAL OPERATING INCOME
U.S. Drilling 12,729 7,068 9,773
International Land Drilling 14,230 14,738 15,775
International Offshore Drilling 2,139 1,408 2,600
Rental Tools 12,769 8,490 11,735
Depreciation and Amortization (16,876) (16,249) (18,642)
--------- --------- ---------
Total Drilling and Rental Operating Income 24,991 15,455 21,241
General and Administrative Expense (6,976) (6,042) (5,455)
Provision for Reduction in Carrying Value of Certain Assets -- -- (6,562)
Gain on Disposition of Assets, Net 552 723 2,328
--------- --------- ---------
TOTAL OPERATING INCOME $ 18,567 $ 10,136 $ 11,552
========= ========= =========
Marketable Rig Count Summary
As of March 31, 2005
Total
-------
U.S. Gulf of Mexico Barge Rigs
Workover 6
Intermediate 4
Deep 9
-------
Total U.S. Gulf of Mexico Barge Rigs 19
-------
International Land Rigs
Asia Pacific 10
Africa/Middle East 1
Latin America 14
CIS 8
-------
Total International Land Rigs 33
INTERNATIONAL BARGE RIGS
Mexico 1
Nigeria 2
Caspian Sea 1
-------
Total International Barge Rigs 4
-------
Total International Rigs 37
-------
-------
Total Marketable Rigs 56
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