EXHIBIT 99
FOR IMMEDIATE RELEASE Investor Contact: David Tucker 281-406-2370
November 2, 2004
Parker Drilling Reports Third Quarter Results
HOUSTON - For the quarter ended September 30, 2004, Parker Drilling Company
(NYSE: PKD) today reported revenues of $87.9 million and a net loss of $22.1
million, or $0.23 per share, compared to a net loss of $6.7 million or $0.07 per
share on revenues of $82.9 million for the third quarter of 2003. The loss from
continuing operations for the third quarter of 2004 was $23.4 million or $0.25
per share compared to a loss from continuing operations of $8.8 million or $0.09
per share for the third quarter of 2003.
As reflected in the Company's recent press release, third quarter operating
results were negatively impacted by lack of activity in the international
offshore segment, which for the third quarter more than offset improved
utilization and dayrates in the US drilling market and increased rental tool
activity. Also contributing to the third quarter loss were non-routine costs
totaling $10.3 million or $0.11 per share. The Company incurred charges of
approximately $8.2 million relating to the issuance of $150 million of Senior
Floating Rate Notes on September 2, 2004, the purchase of $80 million of the
Company's 10.125% Senior Notes and the pay off of its $70 million Term Loan.
These charges included a 6.54% premium paid on the purchase of $80 million of
the Company's 10.125% Senior Notes tendered pursuant to a tender offer dated
August 6, 2004, the write-off of debt issuance costs associated with the debt
paid down, and legal and other fees. In addition, the Mangistau Oblast Court of
the Republic of Kazakhstan confirmed the settlement for duties and taxes
assessed by the Mangistau Customs Control in connection with the temporary
import status of barge rig 257, resulting in a charge of $2.1 million. Though
the short term cash impact was $3.9 million for the settlement, $1.8 million is
expected to be recaptured through reduced VAT payments over the next six
months. The settlement released all claims of the Kazakhstan customs authorities
and the rig is free to move from port and is expected to commence operations
during the fourth quarter.
For the first nine months of 2004, Parker Drilling reported revenues of $266.7
million and a net loss of $40.5 million or $0.43 per share. For the first nine
months of 2003, Parker Drilling reported revenues of $247.1 million and a net
loss of $97.3 million or $1.04 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 nine months of 2004 was $47.0 million or $0.50 per
share compared to a loss from continuing operations of $37.3 million or $0.40
per share for the first nine months of 2003. 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 contracts 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 to the $10.3 million
non-routine charges in the third quarter of 2004, earlier in the year the
Company incurred
other non-routine costs of $5.2 million relating to personnel severance costs,
an adjustment to a life insurance asset and an additional VAT assessment in
Nigeria.
Third quarter average utilization of international land rigs rose to 54 percent
from 43 percent during the second quarter of 2004, a significant increase from
the 29 percent reported for the third quarter of 2003. Average utilization of
Parker Drilling's Gulf of Mexico barge rigs also increased during the third
quarter of 2004 to 66 percent, compared to an average utilization of 60 percent
in the second quarter of 2004 and 40 percent for the third quarter of 2003.
Current utilization is 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 nine months ended September 30, 2004, were $34.8
million. Total debt was $481.1 million at September 30, 2004, and the Company's
cash balance was $38.8 million.
Parker has scheduled a conference call at 10 a.m. CST (11 a.m. EST) November 2,
2004 to discuss third quarter 2004 results. Those interested in participating in
the call may dial in at (303) 262-2131. The conference call replay can be
accessed from noon CST November 2, 2004, until 6 p.m. CST November 9, 2004, by
dialing (303) 590-3000 and using the access code 11011921#. 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, including 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 materially 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.
PARKER DRILLING COMPANY AND SUBSIDIARIES
Consolidated Condensed Statements of Operations
(Unaudited)
<Table>
<Caption>
Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- --------------------------------
2004 2003 2004 2003
------------- ------------- ------------- -------------
(Dollars in Thousands)
DRILLING AND RENTAL REVENUES
U.S. Drilling $ 22,788 $ 13,872 $ 63,209 $ 49,593
International Drilling 49,686 54,950 156,238 157,094
Rental Tools 15,471 14,054 47,278 40,366
------------- ------------- ------------- -------------
TOTAL DRILLING AND RENTAL REVENUES 87,945 82,876 266,725 247,053
------------- ------------- ------------- -------------
DRILLING AND RENTAL OPERATING EXPENSES
U.S. Drilling 13,399 11,964 38,596 37,466
International Drilling 43,824 37,343 122,218 111,398
Rental Tools 6,558 5,860 19,883 16,868
Depreciation and Amortization 17,806 17,450 50,599 56,580
------------- ------------- ------------- -------------
TOTAL DRILLING AND RENTAL OPERATING EXPENSES 81,587 72,617 231,296 222,312
------------- ------------- ------------- -------------
DRILLING AND RENTAL OPERATING INCOME 6,358 10,259 35,429 24,741
------------- ------------- ------------- -------------
Construction Contract Revenue - 1,061 - 7,030
Construction Contract Expense - 61 - 5,030
------------- ------------- ------------- -------------
NET CONSTRUCTION CONTRACT OPERATING INCOME - 1,000 - 2,000
------------- ------------- ------------- -------------
General and Administrative Expense (4,924) (4,079) (17,958) (14,485)
Provision for Reduction in Carrying Value of Certain Assets - - (6,558) -
Gain on Disposition of Assets, Net 333 533 1,402 1,344
------------- ------------- ------------- -------------
TOTAL OPERATING INCOME 1,767 7,713 12,315 13,600
------------- ------------- ------------- -------------
OTHER INCOME AND (EXPENSE)
Interest Expense (12,202) (13,152) (39,077) (39,901)
Loss on Extinguishment of Debt (8,151) - (8,729) -
Other Income (Expense) - Net (294) (430) 461 703
------------- ------------- ------------- -------------
TOTAL OTHER INCOME AND (EXPENSE) (20,647) (13,582) (47,345) (39,198)
------------- ------------- ------------- -------------
LOSS BEFORE INCOME TAXES (18,880) (5,869) (35,030) (25,598)
Income Tax Expense 4,542 2,914 12,008 11,668
------------- ------------- ------------- -------------
LOSS FROM CONTINUING OPERATIONS (23,422) (8,783) (47,038) (37,266)
Discontinued Operations, Net of Taxes 1,359 2,127 6,586 (59,999)
------------- ------------- ------------- -------------
NET LOSS $ (22,063) $ (6,656) $ (40,452) $ (97,265)
============= ============= ============= =============
EARNINGS (LOSS) PER SHARE - BASIC AND DILUTED
Loss From Continuing Operations $ (0.25) $ (0.09) $ (0.50) $ (0.40)
Discontinued Operations, Net of Taxes $ 0.02 $ 0.02 $ 0.07 $ (0.64)
Net Loss $ (0.23) $ (0.07) $ (0.43) $ (1.04)
AVERAGE COMMON SHARES OUTSTANDING
Basic and Diluted 94,196,255 93,728,825 93,944,927 93,198,996
</Table>
PARKER DRILLING COMPANY AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(Unaudited)
<Table>
<Caption>
September 30, 2004 December 31, 2003
-------------------- --------------------
ASSETS (Dollars in Thousands)
CURRENT ASSETS
Cash and Cash Equivalents $ 38,757 $ 67,765
Accounts and Notes Receivable, Net 90,001 89,050
Rig Materials and Supplies 15,769 13,627
Other Current Assets 15,258 2,466
-------------------- --------------------
TOTAL CURRENT ASSETS 159,785 172,908
-------------------- --------------------
PROPERTY, PLANT AND EQUIPMENT, NET 405,623 387,664
ASSETS HELD FOR SALE 27,428 150,370
OTHER ASSETS
Goodwill 114,398 114,398
Other Assets 33,869 22,292
-------------------- --------------------
TOTAL OTHER ASSETS 148,267 136,690
-------------------- --------------------
TOTAL ASSETS $ 741,103 $ 847,632
==================== ====================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current Portion of Long-Term Debt $ 60 $ 60,225
Accounts Payable and Accrued Liabilities 96,590 68,404
-------------------- --------------------
TOTAL CURRENT LIABILITIES 96,650 128,629
-------------------- --------------------
LONG-TERM DEBT 481,062 511,400
DISCONTINUED OPERATIONS 1,035 6,421
OTHER LIABILITIES 7,973 8,379
STOCKHOLDERS' EQUITY 154,383 192,803
-------------------- --------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 741,103 $ 847,632
==================== ====================
Current Ratio 1.65 1.34
Total Long Term Debt as a % of capitalization 76% 73%
Book Value per common share $ 1.63 $ 2.05
</Table>
PARKER DRILLING COMPANY AND SUBSIDIARIES
Selected Financial Data
(Unaudited)
<Table>
<Caption>
Three Months Ended
------------------------------------------------
September 30, June 30,
------------------------------ ------------
2004 2003 2004
------------ ------------ ------------
DRILLING AND RENTAL REVENUES (Dollars in Thousands)
U.S. Drilling $ 22,788 $ 13,872 $ 20,662
International Land Drilling 45,918 37,105 41,120
International Offshore Drilling 3,768 17,845 9,395
Rental Tools 15,471 14,054 16,704
------------ ------------ ------------
Total Drilling and Rental Revenues 87,945 82,876 87,881
------------ ------------ ------------
DRILLING AND RENTAL OPERATING EXPENSES
U.S. Drilling 13,399 11,964 12,506
International Land Drilling 33,553 25,035 26,781
International Offshore Drilling 10,271 12,308 11,722
Rental Tools 6,558 5,860 6,712
------------ ------------ ------------
Drilling and Rental Operating Expenses 63,781 55,167 57,721
------------ ------------ ------------
DRILLING AND RENTAL OPERATING INCOME
U.S. Drilling 9,389 1,908 8,156
International Land Drilling 12,365 12,070 14,339
International Offshore Drilling (6,503) 5,537 (2,327)
Rental Tools 8,913 8,194 9,992
Depreciation and Amortization (17,806) (17,450) (16,544)
------------ ------------ ------------
Total Drilling and Rental Operating Income 6,358 10,259 13,616
Net Construction Contract Operating Income - 1,000 -
General and Administrative Expense (4,924) (4,079) (6,992)
Provision for Reduction in Carrying Value of Certain Assets - - (6,558)
Gain on Disposition of Assets, Net 333 533 346
------------ ------------ ------------
TOTAL OPERATING INCOME $ 1,767 $ 7,713 $ 412
============ ============ ============
</Table>
Marketable Rig Count Summary
As of September 30, 2004
<Table>
<Caption>
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
------------
Rig Held for Sale - U.S. Gulf of Mexico Jackup Rig 1
------------
Total Marketable Rigs 65
============
</Table>