Quarterly report pursuant to Section 13 or 15(d)

Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements (Tables)

v2.4.0.8
Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements (Tables)
6 Months Ended
Jun. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Consolidating Condensed Balance Sheet
PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED BALANCE SHEET
(Dollars in Thousands)
(Unaudited)
 
 
June 30, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
14,706

 
$
5,043

 
$
49,859

 
$

 
$
69,608

Accounts and notes receivable, net
415,294

 
127,661

 
368,236

 
(659,751
)
 
251,440

Rig materials and supplies

 
2,514

 
36,715

 

 
39,229

Deferred costs

 
65

 
10,757

 

 
10,822

Deferred income taxes

 
11,950

 
4,461

 

 
16,411

Other tax assets
1,152

 
(783
)
 
13,353

 

 
13,722

Assets held for sale

 
1,771

 
6,885

 

 
8,656

Other current assets

 
11,343

 
8,475

 

 
19,818

Total current assets
431,152

 
159,564

 
498,741

 
(659,751
)
 
429,706

Property, plant and equipment, net
60

 
557,331

 
295,422

 

 
852,813

Investment in subsidiaries and intercompany advances
818,597

 
(241,693
)
 
1,705,099

 
(2,282,003
)
 

Other noncurrent assets
53,989

 
54,771

 
45,258

 

 
154,018

Total assets
$
1,303,798

 
$
529,973

 
$
2,544,520

 
$
(2,941,754
)
 
$
1,436,537

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

 
$

 
$

 
$

 
$
10,000

Accounts payable and accrued liabilities
68,206

 
90,012

 
373,142

 
(362,230
)
 
169,130

Accrued income taxes
(35,299
)
 
41,885

 
389

 

 
6,975

Total current liabilities
42,907

 
131,897

 
373,531

 
(362,230
)
 
186,105

Long-term debt
589,147

 

 

 

 
589,147

Other long-term liabilities
3,933

 
5,075

 
13,735

 

 
22,743

Long-term deferred tax liability


 
40,892

 
(9,586
)
 

 
31,306

Intercompany payables
62,584

 
43,657

 
356,331

 
(462,572
)
 

Contingencies

 

 

 

 

Stockholders’ equity:
 
 
 
 
 
 
 
 
 
Common stock
19,995

 
18,049

 
43,003

 
(61,052
)
 
19,995

Capital in excess of par value
651,535

 
733,899

 
1,579,458

 
(2,313,357
)
 
651,535

Accumulated other comprehensive income

 

 
(564
)
 

 
(564
)
Retained earnings (accumulated deficit)
(66,303
)
 
(443,496
)
 
186,602

 
257,457

 
(65,740
)
Total controlling interest stockholders’ equity
605,227

 
308,452

 
1,808,499

 
(2,116,952
)
 
605,226

Noncontrolling interest

 

 
2,010

 

 
2,010

Total equity
605,227

 
308,452

 
1,810,509

 
(2,116,952
)
 
607,236

Total liabilities and stockholders’ equity
$
1,303,798

 
$
529,973

 
$
2,544,520

 
$
(2,941,754
)
 
$
1,436,537


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
289,957

 
98,747

 
292,644

 
(512,786
)
 
168,562

Rig materials and supplies

 
2,834

 
26,026

 

 
28,860

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

Assets held for sale

 

 
6,800

 

 
6,800

Other current assets

 
8,675

 
4,146

 

 
12,821

Total current assets
378,457

 
97,758

 
384,855

 
(512,786
)
 
348,284

Property, plant and equipment, net
60

 
548,794

 
240,269

 

 
789,123

Investment in subsidiaries and intercompany advances
780,878

 
(233,388
)
 
1,467,429

 
(2,014,919
)
 

Other noncurrent assets
43,569

 
59,541

 
15,216

 

 
118,326

Total assets
$
1,202,964

 
$
472,705

 
$
2,107,769

 
$
(2,527,705
)
 
$
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

 
93,243

 
205,864

 
(227,200
)
 
137,746

Accrued income taxes

 
612

 
3,508

 

 
4,120

Total current liabilities
75,839

 
93,855

 
209,372

 
(227,200
)
 
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

 
216,320

 
(322,560
)
 

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

Accumulated other comprehensive income

 

 

 

 

Retained earnings (accumulated deficit)
(74,631
)
 
(458,991
)
 
187,526

 
271,465

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

 
292,170

 
1,685,775

 
(1,977,945
)
 
591,404

Noncontrolling interest

 

 
(771
)
 

 
(771
)
Total Equity
591,404

 
292,170

 
1,685,004

 
(1,977,945
)
 
590,633

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

 
$
472,705

 
$
2,107,769

 
$
(2,527,705
)
 
$
1,255,733

Consolidating Condensed Statement of Operations
PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
(Dollars in Thousands)
(Unaudited)

 
Three months ended June 30, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Total revenues
$

 
$
121,848

 
$
133,057

 
$
(28,904
)
 
$
226,001

Operating expenses

 
63,833

 
108,620

 
(28,904
)
 
143,549

Depreciation and amortization

 
18,721

 
13,559

 

 
32,280

Total operating gross margin

 
39,294

 
10,878

 

 
50,172

General and administration expense (1)
(46
)
 
(22,160
)
 
(172
)
 

 
(22,378
)
Gain on disposition of assets, net

 
843

 
(326
)
 

 
517

Total operating income (loss)
(46
)
 
17,977

 
10,380

 

 
28,311

Other income and (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(11,719
)
 
(35
)
 
(2,765
)
 
3,778

 
(10,741
)
Changes in fair value of derivative positions
17

 

 

 

 
17

Interest income
1,437

 
1,144

 
3,400

 
(3,778
)
 
2,203

Other

 
(269
)
 
86

 

 
(183
)
Equity in net earnings of subsidiaries
13,828

 

 

 
(13,828
)
 

Total other income (expense)
3,563

 
840

 
721

 
(13,828
)
 
(8,704
)
Income (benefit) before income taxes
3,517

 
18,817

 
11,101

 
(13,828
)
 
19,607

Total income tax expense (benefit)
(4,764
)
 
12,182

 
3,815

 

 
11,233

Net income (loss)
8,281

 
6,635

 
7,286

 
(13,828
)
 
8,374

Less: Net income (loss) attributable to noncontrolling interest

 

 
93

 

 
93

Net income (loss) attributable to controlling interest
$
8,281

 
$
6,635

 
$
7,193

 
$
(13,828
)
 
$
8,281


(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)

 
Three Months Ended June 30, 2012
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Total revenues
$

 
$
104,767

 
$
98,036

 
$
(23,878
)
 
$
178,925

Operating expenses

 
47,632

 
80,772

 
(23,878
)
 
104,526

Depreciation and amortization

 
15,665

 
12,294

 

 
27,959

Total operating gross margin

 
41,470

 
4,970

 

 
46,440

General and administration expense (1)
(44
)
 
(7,078
)
 
(298
)
 

 
(7,420
)
Gain on disposition of assets, net

 
197

 
1,171

 

 
1,368

Total operating income (loss)
(44
)
 
34,589

 
5,843

 

 
40,388

Other income and (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(9,817
)
 
(35
)
 
(2,023
)
 
2,950

 
(8,925
)
Changes in fair value of derivative positions
38

 

 

 

 
38

Interest income
8,504

 
4,537

 
34,070

 
(47,058
)
 
53

Loss on extinguishment of debt
(1,649
)
 

 

 

 
(1,649
)
Other

 
23

 
(3
)
 

 
20

Equity in net earnings of subsidiaries
19,057

 

 

 
(19,057
)
 

Total other income (expense)
16,133

 
4,525

 
32,044

 
(63,165
)
 
(10,463
)
Income (loss) before income taxes
16,089

 
39,114

 
37,887

 
(63,165
)
 
29,925

Income tax expense (benefit)
(3,994
)
 
13,668

 
143

 

 
9,817

Net income (loss)
20,083

 
25,446

 
37,744

 
(63,165
)
 
20,108

Less: Net income (loss) attributable to noncontrolling interest

 

 
25

 

 
25

Net income (loss) attributable to controlling interest
$
20,083

 
$
25,446

 
$
37,719

 
$
(63,165
)
 
$
20,083


(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)

 
Six Months Ended June 30, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Total revenues
$

 
$
226,210

 
$
219,357

 
$
(52,411
)
 
$
393,156

Operating expenses

 
122,411

 
190,595

 
(52,411
)
 
260,595

Depreciation and amortization

 
37,380

 
24,412

 

 
61,792

Total operating gross margin

 
66,419

 
4,350

 

 
70,769

General and administration expense (1)
(91
)
 
(34,914
)
 
(256
)
 

 
(35,261
)
Gain on disposition of assets, net

 
1,952

 
(287
)
 

 
1,665

Total operating income (loss)
(91
)
 
33,457

 
3,807

 

 
37,173

Other income and (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(22,699
)
 
(59
)
 
(6,182
)
 
8,193

 
(20,747
)
Changes in fair value of derivative positions
54

 

 

 

 
54

Interest income
3,006

 
1,334

 
6,104

 
(8,193
)
 
2,251

Other

 
(167
)
 
111

 

 
(56
)
Equity in net earnings of subsidiaries
14,007

 

 

 
(14,007
)
 

Total other income (expense)
(5,632
)
 
1,108

 
33

 
(14,007
)
 
(18,498
)
Income (loss) before income taxes
(5,723
)
 
34,565

 
3,840

 
(14,007
)
 
18,675

Total Income tax expense (benefit)
(14,596
)
 
17,771

 
6,554

 

 
9,729

Net income (loss)
8,873

 
16,794

 
(2,714
)
 
(14,007
)
 
8,946

Less: Net income (loss) attributable to noncontrolling interest

 

 
73

 

 
73

Net income (loss) attributable to controlling interest
$
8,873

 
$
16,794

 
$
(2,787
)
 
$
(14,007
)
 
$
8,873


(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)

 
Six Months Ended June 30, 2012
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
 
 
 
Total revenues
$

 
$
203,924

 
$
201,061

 
$
(49,491
)
 
$
355,494

Operating expenses

 
90,999

 
157,950

 
(49,491
)
 
199,458

Depreciation and amortization

 
31,261

 
24,317

 

 
55,578

Total operating gross margin

 
81,664

 
18,794

 

 
100,458

General and administration expense (1)
(90
)
 
(12,450
)
 
(377
)
 

 
(12,917
)
Gain on disposition of assets, net

 
615

 
1,245

 

 
1,860

Total operating income (loss)
(90
)
 
69,829

 
19,662

 

 
89,401

Other income and (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(18,818
)
 
(71
)
 
(3,972
)
 
5,899

 
(16,962
)
Changes in fair value of derivative positions
(11
)
 

 

 

 
(11
)
Interest income
8,600

 
4,715

 
36,771

 
(50,007
)
 
79

Loss on extinguishment of debt
(1,649
)
 

 

 

 
(1,649
)
Other

 
36

 

 

 
36

Equity in net earnings of subsidiaries
50,957

 

 

 
(50,957
)
 

Total other income (expense)
39,079

 
4,680

 
32,799

 
(95,065
)
 
(18,507
)
Income (loss) before income taxes
38,989

 
74,509

 
52,461

 
(95,065
)
 
70,894

Income tax expense (benefit)
(7,486
)
 
27,698

 
4,248

 

 
24,460

Net income (loss)
46,475

 
46,811

 
48,213

 
(95,065
)
 
46,434

Less: Net income (loss) attributable to noncontrolling interest

 

 
(41
)
 

 
(41
)
Net income (loss) attributable to controlling interest
$
46,475

 
$
46,811

 
$
48,254

 
$
(95,065
)
 
$
46,475


(1) General and administration expenses for field operations are included in operating expenses.
Consolidated Condensed Statements of Cash Flows
PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
 
 
Six Months Ended June 30, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
8,873

 
$
16,794

 
$
(2,714
)
 
$
(14,007
)
 
$
8,946

Adjustments to reconcile net income (loss):

 

 

 

 

Depreciation and amortization

 
37,380

 
24,412

 

 
61,792

Gain on disposition of assets

 
(1,952
)
 
287

 

 
(1,665
)
Deferred income tax expense
(4,560
)
 
6,261

 
99

 

 
1,800

Expenses not requiring cash
5,218

 
1,563

 
1,208

 

 
7,989

Equity in net earnings of subsidiaries
(14,007
)
 

 

 
14,007

 

Change in accounts receivable
(125,337
)
 
(22,895
)
 
115,947

 

 
(32,285
)
Change in accrued income taxes
(35,297
)
 
41,272

 
(3,796
)
 

 
2,179

Change in other assets
45,072

 
(42,264
)
 
3,903

 

 
6,711

Change in liabilities
1,780

 
(14,043
)
 
2,720

 

 
(9,543
)
Net cash provided by (used in) operating activities
(118,258
)
 
22,116

 
142,066

 

 
45,924

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

Capital expenditures

 
(38,430
)
 
(25,107
)
 

 
(63,537
)
Proceeds from the sale of assets

 
2,834

 
67

 

 
2,901

Acquisition of ITS, net of cash acquired

 
(292
)
 
(117,699
)
 

 
(117,991
)
Net cash (used in) investing activities

 
(35,888
)
 
(142,739
)
 

 
(178,627
)
 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Proceeds from debt issuance
125,000

 

 

 

 
125,000

Paydown on term note
(5,000
)
 

 

 

 
(5,000
)
Payment of debt issuance costs
(5,386
)
 

 

 

 
(5,386
)
Excess tax benefit from stock-based compensation
(189
)
 

 

 

 
(189
)
Intercompany advances, net
(23,712
)
 
7,792

 
15,920

 

 

Net cash provided by (used in) financing activities
90,713

 
7,792

 
15,920

 

 
114,425

 

 

 

 

 

Net change in cash and cash equivalents
(27,545
)
 
(5,980
)
 
15,247

 

 
(18,278
)
Cash and cash equivalents at beginning of year
42,251

 
11,023

 
34,612

 

 
87,886

Cash and cash equivalents at end of year
$
14,706

 
$
5,043

 
$
49,859

 
$

 
$
69,608



PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
 
Six Months Ended June 30, 2012
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
46,475

 
$
46,811

 
$
48,213

 
$
(95,065
)
 
$
46,434

Adjustments to reconcile net income (loss)


 


 


 


 


to net cash provided by operating activities:


 


 


 


 


Depreciation and amortization

 
31,261

 
24,317

 

 
55,578

Loss on extinguishment of debt
1,649

 

 

 

 
1,649

Gain on disposition of assets

 
(615
)
 
(1,245
)
 

 
(1,860
)
Deferred income tax expense
7,025

 
3,832

 
(425
)
 

 
10,432

Expenses not requiring cash
10,737

 
716

 
336

 

 
11,789

Equity in net earnings of subsidiaries
(50,957
)
 

 

 
50,957

 

Change in accounts receivable
(208
)
 
(11,248
)
 
20,617

 

 
9,161

Change in other assets
(29,586
)
 
22,490

 
(42
)
 

 
(7,138
)
Change in accrued income taxes
(766
)
 
1,042

 
647

 

 
923

Change in liabilities
2,402

 
(25,239
)
 
(8,600
)
 

 
(31,437
)
Net cash provided by (used in) operating activities
(13,229
)
 
69,050

 
83,818

 
(44,108
)
 
95,531

 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures

 
(103,855
)
 
(5,676
)
 

 
(109,531
)
Proceeds from the sale of assets

 
906

 
1,434

 

 
2,340

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

 

Net cash (used in) investing activities
(8,387
)
 
(107,306
)
 
(35,606
)
 
44,108

 
(107,191
)
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt issuance
130,000

 

 

 

 
130,000

Paydown on senior notes
(122,852
)
 

 

 

 
(122,852
)
Paydown on term note
(12,000
)
 

 

 

 
(12,000
)
Payment of debt issuance costs
(3,537
)
 

 

 

 
(3,537
)
Payment of debt extinguishment costs
(402
)
 

 

 

 
(402
)
Excess tax benefit from stock-based compensation
49

 

 

 

 
49

Intercompany advances, net
2,919

 
44,310

 
(47,229
)
 

 

Net cash provided by (used in) financing activities
(5,823
)
 
44,310

 
(47,229
)
 

 
(8,742
)
 
 
 
 
 
 
 
 
 
 
Net change in cash and cash equivalents
(27,439
)
 
6,054

 
983

 

 
(20,402
)
Cash and cash equivalents at beginning of year
55,670

 
4,212

 
37,987

 

 
97,869

Cash and cash equivalents at end of year
$
28,231

 
$
10,266

 
$
38,970

 
$

 
$
77,467

Consolidating Condensed Statements of Comprehensive Income (Loss)
 
Three Months Ended June 30, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Comprehensive income (loss):

 

 

 

 

Net income
$
8,281

 
$
6,635

 
$
7,193

 
$
(13,828
)
 
$
8,281

Other comprehensive loss, net of tax:

 

 

 

 

Foreign exchange translation losses and other

 

 
(564
)
 

 
(564
)
Total other comprehensive loss, net of tax:

 

 
(564
)
 

 
(564
)
Comprehensive income
8,281

 
6,635

 
6,629

 
(13,828
)
 
7,717

Comprehensive (income)/loss attributable to noncontrolling interest

 

 
(30
)
 

 
(30
)
Comprehensive income attributable to controlling interest
$
8,281

 
$
6,635

 
$
6,599

 
$
(13,828
)
 
$
7,687



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


 
Six Months Ended June 30, 2013
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Comprehensive income (loss):

 

 

 

 

Net income
$
8,873

 
$
16,794

 
$
(2,787
)
 
$
(14,007
)
 
$
8,873

Other comprehensive loss, net of tax:

 

 

 

 

Foreign exchange translation losses and other

 

 
(564
)
 

 
(564
)
Total other comprehensive loss, net of tax:

 

 
(564
)
 

 
(564
)
Comprehensive income
8,873

 
16,794

 
(3,351
)
 
(14,007
)
 
8,309

Comprehensive (income)/loss attributable to noncontrolling interest

 

 
(30
)
 

 
(30
)
Comprehensive income attributable to controlling interest
$
8,873

 
$
16,794

 
$
(3,381
)
 
$
(14,007
)
 
$
8,279