IMMEDIATE RELEASE Investor Contact: David Tucker 281-406-2370
February 3, 2004
PARKER DRILLING REPORTS FOURTH QUARTER RESULTS
HOUSTON - For the quarter ended December 31, 2003, Parker Drilling Company
(NYSE: PKD) today reported revenues of $84.9 million and a net loss of $12.4
million, or $0.13 per share, compared to a net loss of $10.3 million or $0.11
per share on revenues of $85.7 million for the fourth quarter of 2002. The loss
from continuing operations for the fourth quarter of 2003 was $16.8 million or
$0.18 per share compared to a loss from continuing operations of $5.6 million or
$0.06 per share for the fourth quarter of 2002.
Charges during the fourth quarter of 2003 of $6.0 million for provision for
writedown in carrying value of certain assets, $5.3 million for extinguishment
of debt and a gain on disposition of assets of $2.6 million resulted in a loss
of $8.7 million. Excluding these charges the loss from continuing operations was
$8.1 million or $0.09 per share and within the previously announced guidance of
a loss of $0.09 - $0.11 per share.
For the year ended December 31, 2003, Parker Drilling reported revenues of
$313.8 million and a net loss of $109.7 million, or $1.17 per share, which
includes a $54.0 million or $0.58 per share impairment for assets held for sale
related to discontinued operations. For the year ended December 31, 2002, Parker
Drilling reported revenues of $342.8 million and a net loss of $114.1 million,
or $1.23 per share, which included a goodwill impairment provision of $73.1
million, or $0.79 per share. The loss from continuing operations for the year
ended December 31, 2003 was $51.8 million or $0.55 per share compared to a loss
from continuing operations of $15.3 million or $0.16 per share for the year
ended December 31, 2002.
Fourth quarter average utilization of international land rigs for continuing
operations increased to 36 percent from 34 percent during the third quarter.
However, the current utilization has increased to 45 percent. Average
utilization of Parker Drilling's Gulf of Mexico barge rigs increased during the
fourth quarter of 2003 to 53 percent compared to an average utilization of 40
percent in the third quarter of 2003. The current utilization has increased to
67 percent for the Gulf of Mexico barge rigs, with all nine of the Company's
deep barges under contract.
Capital expenditures for the year ended December 31, 2003, were $35.0 million.
Total debt was $571.6 million at December 31, 2003, and the company's cash
balance was $67.8 million.
Parker Drilling reaffirms its previously released guidance of a diluted loss per
share of $0.10 to $0.20 from continuing operations for 2004.
Parker has scheduled a conference call at 10 a.m. CST (11 a.m. EST) Feb. 3, 2004
to discuss fourth quarter 2003 results. Those interested in participating in the
call may dial in at (303) 262-2140.
The conference call replay can be accessed from noon CST February 3, 2004 until
11:59 p.m. CST February 10, 2004, by dialing (303) 590-3000 and using the access
code 566427#. 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, 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)
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------------- ---------------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
(Dollars in Thousands)
DRILLING AND RENTAL REVENUES
U.S. Drilling $ 17,856 $ 21,635 $ 67,449 $ 78,330
International Drilling 52,805 53,783 191,698 216,991
Rental Tools 14,271 10,304 54,637 47,510
----------- ----------- ----------- -----------
TOTAL DRILLING AND RENTAL REVENUES 84,932 85,722 313,784 342,831
----------- ----------- ----------- -----------
DRILLING AND RENTAL OPERATING EXPENSES
U.S. Drilling 10,274 12,967 47,740 52,475
International Drilling 35,794 33,689 132,014 142,749
Rental Tools 6,183 5,160 23,051 21,810
Depreciation and Amortization 17,099 17,714 68,890 67,954
----------- ----------- ----------- -----------
TOTAL DRILLING AND RENTAL OPERATING EXPENSES 69,350 69,530 271,695 284,988
----------- ----------- ----------- -----------
DRILLING AND RENTAL OPERATING INCOME 15,582 16,192 42,089 57,843
----------- ----------- ----------- -----------
Construction Contract Revenue -- 4,870 7,030 86,818
Construction Contract Expense -- 4,432 5,030 84,356
----------- ----------- ----------- -----------
NET CONSTRUCTION CONTRACT OPERATING INCOME -- 438 2,000 2,462
----------- ----------- ----------- -----------
General and Administrative Expense 4,771 6,145 19,256 24,728
Provision for Reduction in Carrying Value of Certain Assets 6,028 -- 6,028 1,140
Gain on Disposition of Assets, Net 2,594 216 3,557 2,997
----------- ----------- ----------- -----------
TOTAL OPERATING INCOME 7,377 10,701 22,362 37,434
----------- ----------- ----------- -----------
OTHER INCOME AND (EXPENSE)
Interest Expense (13,889) (14,000) (53,790) (52,409)
Extinguishment of Debt (5,274) -- (5,274) --
Other Income (Expense) - Net (6) 923 1,636 (3,140)
----------- ----------- ----------- -----------
TOTAL OTHER INCOME AND (EXPENSE) (19,169) (13,077) (57,428) (55,549)
----------- ----------- ----------- -----------
LOSS BEFORE INCOME TAXES (11,792) (2,376) (35,066) (18,115)
----------- ----------- ----------- -----------
INCOME TAX EXPENSE (BENEFIT)
Current 5,057 6,682 16,703 14,284
Deferred -- (3,420) -- (17,120)
----------- ----------- ----------- -----------
TOTAL INCOME TAX EXPENSE (BENEFIT) 5,057 3,262 16,703 (2,836)
----------- ----------- ----------- -----------
LOSS FROM CONTINUING OPERATIONS (16,849) (5,638) (51,769) (15,279)
Discontinued Operations, Net of Taxes 4,415 (4,694) (57,930) (25,631)
Cumulative Effect of Change in Accounting Principle -- -- -- (73,144)
----------- ----------- ----------- -----------
NET LOSS $ (12,434) $ (10,332) $ (109,699) $ (114,054)
=========== =========== =========== ===========
LOSS PER SHARE - BASIC AND DILUTED
Loss From Continuing Operations $ (0.18) $ (0.06) $ (0.55) $ (0.16)
Discontinued Operations, Net of Taxes $ 0.05 $ (0.05) $ (0.62) $ (0.28)
Cumulative Effect of Change in Accounting Principle $ -- $ -- $ -- $ (0.79)
Net Loss $ (0.13) $ (0.11) $ (1.17) $ (1.23)
AVERAGE COMMON SHARES OUTSTANDING
Basic and Diluted 94,079,159 92,679,141 93,420,713 92,444,773
PARKER DRILLING COMPANY AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Unaudited)
December 31, 2003 December 31, 2002
----------------- -----------------
ASSETS (Dollars in Thousands)
CURRENT ASSETS
Cash and Cash Equivalents $ 67,765 $ 51,982
Accounts and Notes Receivable, Net 89,050 89,363
Rig Materials and Supplies 13,627 17,161
Other Current Assets 2,466 8,631
-------- --------
TOTAL CURRENT ASSETS 172,908 167,137
-------- --------
PROPERTY, PLANT AND EQUIPMENT, NET 387,664 641,278
ASSETS HELD FOR SALE 150,370 896
OTHER ASSETS
Goodwill 114,398 115,983
Other Assets 22,292 28,031
-------- --------
TOTAL OTHER ASSETS 136,690 144,014
-------- --------
TOTAL ASSETS $847,632 $953,325
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current Portion of Long-Term Debt $ 60,225 $ 6,486
Accounts Payable and Accrued Liabilities 68,404 55,089
-------- --------
TOTAL CURRENT LIABILITIES 128,629 61,575
-------- --------
LONG-TERM DEBT 511,400 583,444
DISCONTINUED OPERATIONS 6,421 --
OTHER LIABILITIES 8,379 7,680
STOCKHOLDERS' EQUITY 192,803 300,626
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $847,632 $953,325
======== ========
Current Ratio 1.34 2.71
Total Long Term Debt as a % of capitalization 73% 66%
Book Value per common share $ 2.05 $ 3.24
PARKER DRILLING COMPANY AND SUBSIDIARIES
Selected Financial Data
(Unaudited)
Three Months Ended
----------------------------------------------
December 31, September 30,
-------------------------- -------------
2003 2002 2003
-------- -------- -------------
(Dollars in Thousands)
DRILLING AND RENTAL REVENUES
U.S. Drilling $ 17,856 $ 21,635 $ 13,872
International Land Drilling 34,749 30,662 31,245
International Offshore Drilling 18,056 23,121 17,845
Rental Tools 14,271 10,304 14,054
-------- -------- --------
TOTAL DRILLING AND RENTAL REVENUES 84,932 85,722 77,016
-------- -------- --------
DRILLING AND RENTAL OPERATING INCOME
U.S. Drilling 7,582 8,668 1,908
International Land Drilling 10,586 13,010 10,321
International Offshore Drilling 6,425 7,084 5,537
Rental Tools 8,088 5,144 8,194
Depreciation and Amortization (17,099) (17,714) (17,393)
-------- -------- --------
TOTAL DRILLING AND RENTAL OPERATING INCOME 15,582 16,192 8,567
Construction Contract Operating Income -- 438 1,000
General and Administrative Expense (4,771) (6,145) (4,079)
Provision for Reduction in Carrying Value of Certain Assets (6,028) -- --
Gain on Disposition of Assets, Net 2,594 216 405
-------- -------- --------
TOTAL OPERATING INCOME FROM CONTINUING OPERATIONS $ 7,377 $ 10,701 $ 5,893
======== ======== ========
MARKETABLE RIG COUNT SUMMARY
AS OF DECEMBER 31, 2003
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
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