Annual report pursuant to Section 13 and 15(d)

Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements

v2.4.0.8
Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements
12 Months Ended
Dec. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements
Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements
Set forth on the following pages are the consolidating condensed financial statements of Parker Drilling. The Company’s Secured Credit Agreement and Senior Notes are fully and unconditionally guaranteed by substantially all of our direct and indirect domestic subsidiaries other than immaterial subsidiaries and subsidiaries generating revenues primarily outside the United States, subject to the following customary release provisions:
in connection with any sale or other disposition of all or substantially all of the assets of that guarantor (including by way of merger or consolidation) to a person that is not (either before or after giving effect to such transaction) a subsidiary of the Company;
in connection with any sale of such amount of capital stock as would result in such guarantor no longer being a subsidiary to a person that is not (either before or after giving effect to such transaction) a subsidiary of the Company;
if the Company designates any restricted subsidiary that is a guarantor as an unrestricted subsidiary;
if the guarantee by a guarantor of all other indebtedness of the Company or any other guarantor is released, terminated or discharged, except by, or as a result of, payment under such guarantee; or
upon legal defeasance or covenant defeasance (satisfaction and discharge of the indenture).
There are currently no restrictions on the ability of the restricted subsidiaries to transfer funds to Parker Drilling in the form of cash dividends, loans or advances. Parker Drilling is a holding company with no operations, other than through its subsidiaries. Separate financial statements for each guarantor company are not provided as the company complies with the exception to Rule 3-10(a)(1) of Regulation S-X, set forth in sub-paragraph (f) of such rule. All guarantor subsidiaries are owned 100 percent by the parent company.
We are providing consolidating condensed financial information of the parent, Parker Drilling, the guarantor subsidiaries, and the non-guarantor subsidiaries as of December 31, 2013 and December 31, 2012 and for the years ended December 31, 2013, 2012, and 2011. The consolidating condensed financial statements present investments in both consolidated and unconsolidated subsidiaries using the equity method of accounting.
PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
(Dollars in Thousands)
(Unaudited)
 
Year ended December 31, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Total revenues
$

 
$
468,073

 
$
549,295

 
$
(143,196
)
 
$
874,172

Operating expenses

 
252,211

 
462,657

 
(143,196
)
 
571,672

Depreciation and amortization

 
77,416

 
56,637

 

 
134,053

Total operating gross margin

 
138,446

 
30,001

 

 
168,447

General and administration expense (1)
(202
)
 
(67,083
)
 
(740
)
 

 
(68,025
)
Provision for reduction in carrying value of certain assets

 

 
(2,544
)
 

 
(2,544
)
Gain on disposition of assets, net

 
1,759

 
2,235

 

 
3,994

Total operating income (loss)
(202
)
 
73,122

 
28,952

 

 
101,872

Other income and (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(51,439
)
 
(335
)
 
(9,930
)
 
13,884

 
(47,820
)
Changes in fair value of derivative positions
53

 

 

 

 
53

Interest income
3,824

 
1,761

 
10,749

 
(13,884
)
 
2,450

Loss on extinguishment of debt
(5,218
)
 

 

 

 
(5,218
)
Other
(1
)
 
(143
)
 
1,594

 

 
1,450

Equity in net earnings of subsidiaries
55,430

 

 

 
(55,430
)
 

Total other income (expense)
2,649

 
1,283

 
2,413

 
(55,430
)
 
(49,085
)
Income (loss) before income taxes
2,447

 
74,405

 
31,365

 
(55,430
)
 
52,787

Income tax expense (benefit):
 
 
 
 
 
 
 
 
 
Current
(21,431
)
 
18,737

 
15,603

 

 
12,909

Deferred
(3,137
)
 
19,454

 
(3,618
)
 

 
12,699

Income tax expense (benefit)
(24,568
)
 
38,191

 
11,985

 

 
25,608

Net income (loss)
27,015

 
36,214

 
19,380

 
(55,430
)
 
27,179

Less: Net (loss) attributable to noncontrolling interest

 

 
164

 

 
164

Net income (loss) attributable to controlling interest
$
27,015

 
$
36,214

 
$
19,216

 
$
(55,430
)
 
$
27,015

(1)
General and administration expenses for field operations are included in operating expenses.
PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
(Dollars in Thousands)
(Unaudited) 
 
Year ended December 31, 2012
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Total revenues
$

 
$
393,738

 
$
385,279

 
$
(101,256
)
 
$
677,761

Operating expenses

 
184,946

 
329,498

 
(101,256
)
 
413,188

Depreciation and amortization

 
65,354

 
47,663

 

 
113,017

Total operating gross margin

 
143,438

 
8,118

 

 
151,556

General and administration expense (1)
(182
)
 
(45,758
)
 
(317
)
 

 
(46,257
)
Gain on disposition of assets, net

 
775

 
1,199

 

 
1,974

Total operating income (loss)
(182
)
 
98,455

 
9,000

 

 
107,273

Other income and (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(37,326
)
 
(151
)
 
(8,739
)
 
12,674

 
(33,542
)
Interest income
9,863

 
5,073

 
41,999

 
(56,782
)
 
153

Loss on extinguishment of debt
(2,130
)
 

 

 

 
(2,130
)
Changes in fair value of derivative positions
55

 

 

 

 
55

Other

 
(206
)
 
(626
)
 

 
(832
)
Equity in net earnings of subsidiaries
43,884

 

 

 
(43,884
)
 

Total other income (expense)
14,346

 
4,716

 
32,634

 
(87,992
)
 
(36,296
)
Income (loss) before income taxes
14,164

 
103,171

 
41,634

 
(87,992
)
 
70,977

Income tax expense (benefit):
 
 
 
 
 
 
 
 
 
Current
(25,406
)
 
32,781

 
10,667

 

 
18,042

Deferred
2,257

 
15,429

 
(1,849
)
 

 
15,837

Income tax expense (benefit)
(23,149
)
 
48,210

 
8,818

 

 
33,879

Net income (loss)
37,313

 
54,961

 
32,816

 
(87,992
)
 
37,098

Less: Net (loss) attributable to noncontrolling interest

 

 
(215
)
 

 
(215
)
Net income (loss) attributable to controlling interest
37,313

 
54,961

 
33,031

 
(87,992
)
 
37,313

______________________
(1)
General and administration expenses for field operations are included in operating expenses.
PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
(Dollars in Thousands)
(Unaudited)
 
Year ended December 31, 2011
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Total revenues
$

 
$
375,798

 
$
426,491

 
$
(116,055
)
 
$
686,234

Operating expenses

 
174,955

 
357,777

 
(116,055
)
 
416,677

Depreciation and amortization

 
62,744

 
49,392

 

 
112,136

Total operating gross margin

 
138,099

 
19,322

 

 
157,421

General and administration expense (1)
(218
)
 
(30,968
)
 
(381
)
 

 
(31,567
)
Impairment and other charges

 
(170,000
)
 

 

 
(170,000
)
Provision for reduction in carrying value of certain assets

 
(1,350
)
 

 

 
(1,350
)
Gain on disposition of assets, net

 
2,706

 
953

 

 
3,659

Total operating income (loss)
(218
)
 
(61,513
)
 
19,894

 

 
(41,837
)
Other income and (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(26,654
)
 
(17,889
)
 
(8,865
)
 
30,814

 
(22,594
)
Interest income
18,131

 
750

 
12,189

 
(30,814
)
 
256

Loss on extinguishment of debt

 

 

 

 

Changes in fair value of derivative positions
(110
)
 

 

 

 
(110
)
Other

 
(315
)
 
(812
)
 

 
(1,127
)
Equity in net earnings of subsidiaries
(23,484
)
 

 

 
23,484

 

Total other income and (expense)
(32,117
)
 
(17,454
)
 
2,512

 
23,484

 
(23,575
)
Income (loss) before income taxes
(32,335
)
 
(78,967
)
 
22,406

 
23,484

 
(65,412
)
Income tax expense (benefit):
 
 
 
 
 
 
 
 
 
Current
(13,402
)
 
27,169

 
19,841

 

 
33,608

Deferred
31,518

 
(57,030
)
 
(22,863
)
 

 
(48,375
)
Total income tax expense (benefit)
18,116

 
(29,861
)
 
(3,022
)
 

 
(14,767
)
Net income (loss)
(50,451
)
 
(49,106
)
 
25,428

 
23,484

 
(50,645
)
Less: Net (loss) attributable to noncontrolling interest
$

 
$

 
$
(194
)
 
$

 
$
(194
)
Net income (loss) attributable to controlling interest
(50,451
)
 
(49,106
)
 
25,622

 
23,484

 
(50,451
)
_______________________
(1)
General and administration expenses for field operations are included in operating expenses.
PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED BALANCE SHEET
(Dollars in Thousands)
(Unaudited)
 
December 31, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
ASSETS
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
88,697

 
$
8,310

 
$
51,682

 
$

 
$
148,689

Accounts and notes receivable, net

 
101,299

 
156,590

 

 
257,889

Rig materials and supplies

 
3,002

 
38,779

 

 
41,781

Deferred costs

 

 
13,682

 

 
13,682

Deferred income taxes
(57
)
 
8,435

 
1,562

 

 
9,940

Other tax assets
54,524

 
(46,770
)
 
16,325

 

 
24,079

Other current assets

 
9,089

 
14,134

 

 
23,223

Total current assets
143,164

 
83,365

 
292,754

 

 
519,283

Property, plant and equipment, net
60

 
562,148

 
309,148

 

 
871,356

Investment in subsidiaries and intercompany advances
1,906,128

 
(336,570
)
 
1,667,937

 
(3,237,495
)
 

Other noncurrent assets
(457,954
)
 
468,864

 
250,983

 
(117,776
)
 
144,117

Total assets
$
1,591,398

 
$
777,807

 
$
2,520,822

 
$
(3,355,271
)
 
$
1,534,756

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
$
25,000

 
$

 
$

 
$

 
$
25,000

Accounts payable and accrued liabilities
75,268

 
92,546

 
261,436

 
(254,364
)
 
174,886

Accrued income taxes

 
725

 
6,541

 

 
7,266

Total current liabilities
100,268

 
93,271

 
267,977

 
(254,364
)
 
207,152

Long-term debt
628,781

 

 

 

 
628,781

Other long-term liabilities
5,037

 
6,743

 
15,134

 

 
26,914

Long-term deferred tax liability

 
51,747

 
(12,980
)
 

 
38,767

Intercompany payables
227,504

 
291,783

 
422,645

 
(941,932
)
 

Contingencies

 

 

 

 

Stockholders’ equity:
 
 
 
 
 
 
 
 
 
Common stock
20,075

 
18,049

 
43,003

 
(61,052
)
 
20,075

Capital in excess of par value
657,349

 
740,438

 
1,572,919

 
(2,313,357
)
 
657,349

Accumulated other comprehensive income

 

 
1,888

 

 
1,888

Retained earnings (accumulated deficit)
(47,616
)
 
(424,224
)
 
208,790

 
215,434

 
(47,616
)
Total controlling interest stockholders’ equity
629,808

 
334,263

 
1,826,600

 
(2,158,975
)
 
631,696

Noncontrolling interest

 

 
1,446

 

 
1,446

Total Equity
629,808

 
334,263

 
1,828,046

 
(2,158,975
)
 
633,142

Total liabilities and stockholders’ equity
$
1,591,398

 
$
777,807

 
$
2,520,822

 
$
(3,355,271
)
 
$
1,534,756

PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED BALANCE SHEET
(Dollars in Thousands)
(Unaudited)
 
December 31, 2012
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
ASSETS
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
42,251

 
$
11,023

 
$
34,612

 
$

 
$
87,886

Accounts and notes receivable, net
(7
)
 
77,927

 
90,695

 

 
168,615

Rig materials and supplies

 
2,835

 
26,587

 

 
29,422

Deferred costs

 

 
1,089

 

 
1,089

Deferred income taxes

 
7,615

 
1,127

 

 
8,742

Other tax assets
46,249

 
(31,136
)
 
18,411

 

 
33,524

Other current assets

 
8,708

 
4,145

 

 
12,853

Total current assets
88,493

 
76,972

 
176,666

 

 
342,131

Property, plant and equipment, net
60

 
548,794

 
244,343

 

 
793,197

Investment in subsidiaries and intercompany advances
1,492,708

 
(523,143
)
 
1,467,617

 
(2,437,182
)
 

Other noncurrent assets
(378,297
)
 
370,877

 
219,196

 
(91,371
)
 
120,405

Total assets
$
1,202,964

 
$
473,500

 
$
2,107,822

 
$
(2,528,553
)
 
$
1,255,733

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
$
10,000

 
$

 
$

 
$

 
$
10,000

Accounts payable and accrued liabilities
65,839

 
94,037

 
205,864

 
(227,994
)
 
137,746

Accrued income taxes

 
612

 
3,508

 

 
4,120

Total current liabilities
75,839

 
94,649

 
209,372

 
(227,994
)
 
151,866

Long-term debt
469,205

 

 

 

 
469,205

Other long-term liabilities
3,933

 
6,129

 
13,120

 

 
23,182

Long-term deferred tax liability

 
36,894

 
(16,047
)
 

 
20,847

Intercompany payables
62,583

 
43,657

 
216,369

 
(322,609
)
 

Contingencies

 

 

 

 

Stockholders’ equity:
 
 
 
 
 
 
 
 
 
Common stock
19,818

 
18,049

 
43,003

 
(61,052
)
 
19,818

Capital in excess of par value
646,217

 
733,112

 
1,455,246

 
(2,188,358
)
 
646,217

Retained earnings (accumulated deficit)
(74,631
)
 
(458,990
)
 
187,530

 
271,460

 
(74,631
)
Total controlling interest stockholders’ equity
591,404

 
292,171

 
1,685,779

 
(1,977,950
)
 
591,404

Noncontrolling interest

 

 
(771
)
 

 
(771
)
Total Equity
591,404

 
292,171

 
1,685,008

 
(1,977,950
)
 
590,633

Total liabilities and stockholders’ equity
$
1,202,964

 
$
473,500

 
$
2,107,822

 
$
(2,528,553
)
 
$
1,255,733








PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(Dollars in Thousands)
(Unaudited)


 
Year Ended December 31, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Comprehensive income:
 
 
 
 
 
 
 
 
 
Net income
$
27,015

 
$
36,214

 
$
19,380

 
$
(55,430
)
 
$
27,179

Other comprehensive gain, net of tax:
 
 
 
 
 
 
 
 
 
Currency translation difference on related borrowings

 

 
(1,525
)
 

 
(1,525
)
Currency translation difference on foreign currency net investments

 

 
3,051

 

 
3,051

Total other comprehensive gain, net of tax:

 

 
1,526

 

 
1,526

Comprehensive income
27,015

 
36,214

 
20,906

 
(55,430
)
 
28,705

Comprehensive (income) loss attributable to noncontrolling interest

 

 
198

 

 
198

Comprehensive income (loss) attributable to controlling interest
$
27,015

 
$
36,214

 
$
21,104

 
$
(55,430
)
 
$
28,903



PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(Dollars in Thousands)
(Unaudited)


 
Year Ended December 31, 2012
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Comprehensive income:
 
 
 
 
 
 
 
 
 
Net income
$
37,313

 
$
54,961

 
$
32,816

 
$
(87,992
)
 
$
37,098

Other comprehensive gain, net of tax:
 
 
 
 
 
 
 
 
 
Currency translation difference on related borrowings

 

 

 

 

Currency translation difference on foreign currency net investments

 

 

 

 

Total other comprehensive gain, net of tax:

 

 

 

 

Comprehensive income
37,313

 
54,961

 
32,816

 
(87,992
)
 
37,098

Comprehensive (income) loss attributable to noncontrolling interest

 

 
215

 

 
215

Comprehensive income (loss) attributable to controlling interest
$
37,313

 
$
54,961

 
$
33,031

 
$
(87,992
)
 
$
37,313











PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(Dollars in Thousands)
(Unaudited)

 
Year ended December 31, 2011
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Comprehensive income:
 
 
 
 
 
 
 
 
 
Net income
$
(50,451
)
 
$
(49,106
)
 
$
25,428

 
$
23,484

 
$
(50,645
)
Other comprehensive gain, net of tax:
 
 
 
 
 
 
 
 
 
Currency translation difference on related borrowings

 

 

 

 

Currency translation difference on foreign currency net investments

 

 

 

 

Total other comprehensive gain, net of tax:

 

 

 

 

Comprehensive income
(50,451
)
 
(49,106
)
 
25,428

 
23,484

 
(50,645
)
Comprehensive (income) loss attributable to noncontrolling interest

 

 
194

 

 
194

Comprehensive income (loss) attributable to controlling interest
$
(50,451
)
 
$
(49,106
)
 
$
25,622

 
$
23,484

 
$
(50,451
)


































PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
 
Year Ended December 31, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
27,015

 
$
36,214

 
$
19,380

 
$
(55,430
)
 
$
27,179

Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
 
 
 
 
 
 
 
Depreciation and amortization

 
77,416

 
56,637

 

 
134,053

Loss on extinguishment of debt
5,218

 

 

 

 
5,218

Gain on disposition of assets

 
(1,759
)
 
(2,235
)
 

 
(3,994
)
Deferred income tax expense
(3,137
)
 
19,454

 
(3,618
)
 

 
12,699

Provision for reduction in carrying value of certain assets

 

 
2,544

 

 
2,544

Expenses not requiring cash
13,173

 
12

 
4,579

 

 
17,764

Equity in net earnings of subsidiaries
(55,430
)
 

 

 
55,430

 

Change in accounts receivable
(7
)
 
(12,888
)
 
(20,617
)
 

 
(33,512
)
Change in other assets
74,411

 
(85,520
)
 
487

 

 
(10,622
)
Change in accrued income taxes
6,617

 
(1,052
)
 
4,889

 

 
10,454

Change in liabilities
6,934

 
(877
)
 
(6,343
)
 

 
(286
)
Net cash provided by (used in) operating activities
74,794

 
31,000

 
55,703

 

 
161,497

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures

 
(94,269
)
 
(61,376
)
 

 
(155,645
)
Proceeds from the sale of assets

 
3,725

 
4,493

 

 
8,218

Acquisition of ITS, net of cash acquired

 
(6,903
)
 
(111,088
)
 

 
(117,991
)
Intercompany dividend payment

 

 

 

 

Net cash (used in) investing activities

 
(97,447
)
 
(167,971
)
 

 
(265,418
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt issuance
350,000

 

 

 

 
350,000

Proceeds from draw on revolver credit facility

 

 

 

 

Repayment of long term debt
(125,000
)
 

 

 

 
(125,000
)
Repayment of term loan
(50,000
)
 

 

 

 
(50,000
)
Paydown on revolver credit facility

 

 

 

 

Payment of debt issuance costs
(11,172
)
 

 

 

 
(11,172
)
Payment of debt extinguishment costs

 

 

 

 

Excess tax benefit from stock-based compensation
896

 

 

 

 
896

Intercompany advances, net
(193,072
)
 
63,734

 
129,338

 

 

Net cash provided by (used in) financing activities
(28,348
)
 
63,734

 
129,338

 

 
164,724

Net change in cash and cash equivalents
46,446

 
(2,713
)
 
17,070

 

 
60,803

Cash and cash equivalents at beginning of year
42,251

 
11,023

 
34,612

 

 
87,886

Cash and cash equivalents at end of year
$
88,697

 
$
8,310

 
$
51,682

 
$

 
$
148,689

See accompanying notes to unaudited consolidated condensed financial statements.
PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
 
Year Ended December 31, 2012
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
37,313

 
$
54,961

 
$
32,816

 
$
(87,992
)
 
$
37,098

Adjustments to reconcile net income (loss)to net cash provided by operating activities:
 
 
 
 
 
 
 
 
 
Depreciation and amortization

 
65,354

 
47,663

 

 
113,017

Loss on extinguishment of debt
2,130

 

 

 

 
2,130

Gain on disposition of assets

 
(775
)
 
(1,199
)
 

 
(1,974
)
Deferred income tax expense
2,257

 
15,429

 
(1,849
)
 

 
15,837

Expenses not requiring cash
16,558

 
33,644

 
(27,602
)
 

 
22,600

Equity in net earnings of subsidiaries
(43,884
)
 

 

 
43,884

 

Change in accounts receivable
(445
)
 
(1,788
)
 
17,474

 

 
15,241

Change in other assets
1,649

 
2,060

 
(9,200
)
 

 
(5,491
)
Change in accrued income taxes
(4,055
)
 
220

 
(2,267
)
 

 
(6,102
)
Change in liabilities
3,914

 
(4,158
)
 
(2,413
)
 

 
(2,657
)
Net cash provided by (used in) operating activities
15,437

 
164,947

 
53,423

 
(44,108
)
 
189,699

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures

 
(176,333
)
 
(15,210
)
 

 
(191,543
)
Proceeds from the sale of assets

 
2,062

 
1,875

 

 
3,937

Intercompany dividend payment
(8,387
)
 
(4,357
)
 
(31,364
)
 
44,108

 

Net cash provided by (used in) investing activities
(8,387
)
 
(178,628
)
 
(44,699
)
 
44,108

 
(187,606
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt issuance
130,000

 

 

 

 
130,000

Proceeds from draw on revolver credit facility
7,000

 

 

 

 
7,000

Paydown on senior notes
(125,000
)
 

 

 

 
(125,000
)
Paydown on term note
(18,000
)
 

 

 

 
(18,000
)
Paydown on revolver credit facility

 

 

 

 

Payment of debt issuance costs
(4,859
)
 

 

 

 
(4,859
)
Payment of debt extinguishment costs
(555
)
 

 

 

 
(555
)
Excess tax benefit from stock-based compensation
(662
)
 

 

 

 
(662
)
Intercompany advances, net
(8,393
)
 
20,492

 
(12,099
)
 

 

Net cash provided by (used in) financing activities
(20,469
)
 
20,492

 
(12,099
)
 

 
(12,076
)
Net change in cash and cash equivalents
(13,419
)
 
6,811

 
(3,375
)
 

 
(9,983
)
Cash and cash equivalents at beginning of year
55,670

 
4,212

 
37,987

 

 
97,869

Cash and cash equivalents at end of year
$
42,251

 
$
11,023

 
$
34,612

 
$

 
$
87,886

See accompanying notes to unaudited consolidated condensed financial statements.
PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
 
Year Ended December 31, 2011
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
(50,451
)
 
$
(49,106
)
 
$
25,428

 
$
23,484

 
$
(50,645
)
Adjustments to reconcile net income (loss)to net cash provided by operating activities:
 
 
 
 
 
 
 
 
 
Depreciation and amortization

 
62,744

 
49,392

 

 
112,136

Loss on extinguishment of debt

 

 

 

 

Gain on disposition of assets

 
(2,706
)
 
(953
)
 

 
(3,659
)
Deferred income tax expense
31,518

 
(57,030
)
 
(22,863
)
 

 
(48,375
)
Impairment and other charges

 
170,000

 

 

 
170,000

Provision for reduction in carrying value of certain assets

 
1,350

 

 

 
1,350

Expenses not requiring cash
16,411

 
376

 
(3,954
)
 

 
12,833

Equity in net earnings of subsidiaries
23,484

 

 

 
(23,484
)
 

Change in accounts receivable
(288,333
)
 
347,344

 
(65,852
)
 

 
(6,841
)
Change in other assets
62,173

 
(16,724
)
 
16,404

 

 
61,853

Change in accrued income taxes
(12,852
)
 
(2,053
)
 
17,046

 

 
2,141

Change in liabilities
2,398

 
(51,351
)
 
24,045

 

 
(24,908
)
Net cash provided by (used in) operating activities
(215,652
)
 
402,844

 
38,693

 

 
225,885

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures

 
(174,999
)
 
(15,400
)
 

 
(190,399
)
Proceeds from the sale of assets

 
4,335

 
1,200

 

 
5,535

Proceeds from insurance settlements

 
250

 

 

 
250

Intercompany dividend payment

 

 

 

 

Net cash provided by (used in) investing activities

 
(170,414
)
 
(14,200
)
 

 
(184,614
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt issuance
50,000

 

 

 

 
50,000

Paydown on term note
(21,000
)
 

 

 

 
(21,000
)
Paydown on revolver credit facility
(25,000
)
 

 

 

 
(25,000
)
Payment of debt issuance costs
(504
)
 

 

 

 
(504
)
Payment of debt extinguishment costs

 

 

 

 

Proceeds from stock options exercised
183

 

 

 

 
183

Excess tax benefit from stock-based compensation
1,488

 

 

 

 
1,488

Intercompany advances, net
252,320

 
(230,535
)
 
(21,785
)
 

 

Net cash provided by (used in) financing activities
257,487

 
(230,535
)
 
(21,785
)
 

 
5,167

Net change in cash and cash equivalents
41,835

 
1,895

 
2,708

 

 
46,438

Cash and cash equivalents at beginning of year
13,835

 
2,317

 
35,279

 

 
51,431

Cash and cash equivalents at end of year
$
55,670

 
$
4,212

 
$
37,987

 
$

 
$
97,869


See accompanying notes to unaudited consolidated condensed financial statements.