Quarterly report pursuant to Section 13 or 15(d)

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

v3.3.0.814
Parent, Guarantor, Non-Guarantor Unaudited Consolidating Condensed Financial Statements
9 Months Ended
Sep. 30, 2015
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 2015 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 unaudited consolidating condensed financial information of the parent, Parker Drilling, the guarantor subsidiaries, and the non-guarantor subsidiaries as of September 30, 2015 and December 31, 2014 and for the three and nine months ended September 30, 2015 and 2014, respectively. The consolidating condensed financial statements present investments in both consolidated and unconsolidated subsidiaries using the equity method of accounting.
Upon the closing of our 2015 Secured Credit Agreement, one of our subsidiaries was released as a guarantor subsidiary and is now classified as a non-guarantor subsidiary. In accordance with the guidance Topic No. 810, Consolidation (ASC 810), we have retrospectively updated the unaudited consolidating condensed financial information as of December 31, 2014 and for the three and nine months ended September 30, 2014.
PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED BALANCE SHEET
(Dollars in Thousands)
(Unaudited)
 
 
September 30, 2015
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
ASSETS
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
46,528

 
$
8,000

 
$
50,123

 
$

 
$
104,651

Accounts and notes receivable, net

 
66,413

 
158,583

 

 
224,996

Rig materials and supplies

 
(4,279
)
 
42,795

 

 
38,516

Deferred costs

 

 
2,961

 

 
2,961

Deferred income taxes

 
4,172

 
1,276

 

 
5,448

Other tax assets

 
463

 
7,369

 

 
7,832

Other current assets

 
6,717

 
10,484

 

 
17,201

Total current assets
46,528

 
81,486

 
273,591

 

 
401,605

Property, plant and equipment, net
(19
)
 
560,618

 
281,324

 

 
841,923

Goodwill

 
6,708

 

 

 
6,708

Intangible assets, net

 
12,317

 
2,424

 

 
14,741

Investment in subsidiaries and intercompany advances
3,074,849

 
2,700,571

 
3,147,601

 
(8,923,021
)
 

Other noncurrent assets
(276,366
)
 
374,987

 
246,033

 
(167,448
)
 
177,206

Total assets
$
2,844,992

 
$
3,736,687

 
$
3,950,973

 
$
(9,090,469
)
 
$
1,442,183

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

 
$

 
$

 
$

 
$

Accounts payable and accrued liabilities
67,123

 
77,565

 
303,001

 
(304,113
)
 
143,576

Accrued income taxes
1,013

 
9,434

 
(3,853
)
 

 
6,594

Total current liabilities
68,136

 
86,999

 
299,148

 
(304,113
)
 
150,170

Long-term debt
585,000

 

 

 

 
585,000

Other long-term liabilities
2,867

 
8,004

 
9,270

 

 
20,141

Long-term deferred tax liability

 
75,545

 
(348
)
 

 
75,197

Intercompany payables
1,581,364

 
1,395,937

 
1,711,311

 
(4,688,612
)
 

Total liabilities
2,237,367

 
1,566,485

 
2,019,381

 
(4,992,725
)
 
830,508

Total equity
607,625

 
2,170,202

 
1,931,592

 
(4,097,744
)
 
611,675

Total liabilities and stockholders’ equity
$
2,844,992

 
$
3,736,687

 
$
3,950,973

 
$
(9,090,469
)
 
$
1,442,183



PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED BALANCE SHEET
(Dollars in Thousands)
(Unaudited)
 
 
December 31, 2014
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
ASSETS
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
36,728

 
$
13,546

 
$
58,182

 
$

 
$
108,456

Accounts and notes receivable, net
(33
)
 
96,100

 
174,885

 

 
270,952

Rig materials and supplies

 
(1,473
)
 
49,416

 

 
47,943

Deferred costs

 

 
5,673

 

 
5,673

Deferred income taxes

 
6,131

 
1,345

 

 
7,476

Other tax assets
19,885

 
(18,273
)
 
9,111

 

 
10,723

Other current assets

 
7,998

 
10,558

 

 
18,556

Total current assets
56,580

 
104,029

 
309,170

 

 
469,779

Property, plant and equipment, net
(19
)
 
589,055

 
306,904

 

 
895,940

Intangible assets, net

 

 
4,286

 

 
4,286

Investment in subsidiaries and intercompany advances
3,060,867

 
2,441,523

 
2,464,506

 
(7,966,896
)
 

Other noncurrent assets
(440,918
)
 
490,597

 
268,537

 
(167,562
)
 
150,654

Total assets
$
2,676,510

 
$
3,625,204

 
$
3,353,403

 
$
(8,134,458
)
 
$
1,520,659

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

 
$

 
$

 
$

 
$
10,000

Accounts payable and accrued liabilities
77,603

 
71,645

 
309,344

 
(304,113
)
 
154,479

Accrued income taxes
(4,061
)
 
10,109

 
8,138

 

 
14,186

Total current liabilities
83,542

 
81,754

 
317,482

 
(304,113
)
 
178,665

Long-term debt
605,000

 

 

 

 
605,000

Other long-term liabilities
2,867

 
7,135

 
8,663

 

 
18,665

Long-term deferred tax liability

 
56,105

 
(3,990
)
 

 
52,115

Intercompany payables
1,322,172

 
1,311,404

 
1,204,769

 
(3,838,345
)
 

Total liabilities
2,013,581

 
1,456,398

 
1,526,924

 
(4,142,458
)
 
854,445

Total equity
662,929

 
2,168,806

 
1,826,479

 
(3,992,000
)
 
666,214

Total liabilities and stockholders’ equity
$
2,676,510

 
$
3,625,204

 
$
3,353,403

 
$
(8,134,458
)
 
$
1,520,659

PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
(Dollars in Thousands)
(Unaudited)

 
Three months ended September 30, 2015
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Total revenues
$

 
$
59,252

 
$
138,564

 
$
(24,398
)
 
$
173,418

Operating expenses

 
32,457

 
120,904

 
(24,398
)
 
128,963

Depreciation and amortization

 
24,002

 
15,582

 

 
39,584

Total operating gross margin

 
2,793

 
2,078

 

 
4,871

General and administration expense (1)
(148
)
 
(8,857
)
 
110

 

 
(8,895
)
Provision for reduction in carrying value of certain assets

 
(920
)
 
14

 

 
(906
)
Gain (Loss) on disposition of assets, net

 
407

 
(24
)
 

 
383

Total operating income (loss)
(148
)
 
(6,577
)
 
2,178

 

 
(4,547
)
Other income and (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(11,020
)
 
(268
)
 
(2,618
)
 
2,613

 
(11,293
)
Interest income
173

 
(18
)
 
2,465

 
(2,613
)
 
7

Other

 
(102
)
 
(617
)
 

 
(719
)
Equity in net earnings of subsidiaries
(29,913
)
 

 

 
29,913

 

Total other income (expense)
(40,760
)
 
(388
)
 
(770
)
 
29,913

 
(12,005
)
Income (loss) before income taxes
(40,908
)
 
(6,965
)
 
1,408

 
29,913

 
(16,552
)
Total income tax expense (benefit)
7,712

 
(2,846
)
 
27,064

 

 
31,930

Net income (loss)
(48,620
)
 
(4,119
)
 
(25,656
)
 
29,913

 
(48,482
)
Less: Net income attributable to noncontrolling interest

 

 
138

 

 
138

Net income (loss) attributable to controlling interest
$
(48,620
)
 
$
(4,119
)
 
$
(25,794
)
 
$
29,913

 
$
(48,620
)

(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 September 30, 2014
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Total revenues
$

 
$
129,935

 
$
156,495

 
$
(44,418
)
 
$
242,012

Operating expenses

 
65,369

 
139,846

 
(44,418
)
 
160,797

Depreciation and amortization

 
22,168

 
13,981

 

 
36,149

Total operating gross margin

 
42,398

 
2,668

 

 
45,066

General and administration expense (1)
110

 
(8,988
)
 
(492
)
 

 
(9,370
)
Gain (loss) on disposition of assets, net

 
91

 
(548
)
 

 
(457
)
Total operating income (loss)
110

 
33,501

 
1,628

 

 
35,239

Other income and (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(11,529
)
 
(35
)
 
(1,943
)
 
2,659

 
(10,848
)
Interest income
98

 
176

 
2,421

 
(2,659
)
 
36

Other

 
675

 
(1,211
)
 

 
(536
)
Equity in net earnings of subsidiaries
19,442

 

 

 
(19,442
)
 

Total other income (expense)
8,011

 
816

 
(733
)
 
(19,442
)
 
(11,348
)
Income (loss) before income taxes
8,121

 
34,317

 
895

 
(19,442
)
 
23,891

Income tax expense (benefit)
(4,445
)
 
14,337

 
1,122

 

 
11,014

Net income (loss)
12,566

 
19,980

 
(227
)
 
(19,442
)
 
12,877

Less: Net income attributable to noncontrolling interest

 

 
311

 

 
311

Net income (loss) attributable to controlling interest
$
12,566

 
$
19,980

 
$
(538
)
 
$
(19,442
)
 
$
12,566


(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)

 
Nine Months Ended September 30, 2015
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Total revenues
$

 
$
201,924

 
$
452,197

 
$
(90,686
)
 
$
563,435

Operating expenses

 
112,229

 
390,259

 
(90,686
)
 
411,802

Depreciation and amortization

 
71,270

 
47,204

 

 
118,474

Total operating gross margin

 
18,425

 
14,734

 

 
33,159

General and administration expense (1)
(1,152
)
 
(31,896
)
 
3,805

 

 
(29,243
)
Provision for reduction in carrying value of certain assets

 
(920
)
 
(2,302
)
 

 
(3,222
)
Gain on disposition of assets, net

 
452

 
2,234

 

 
2,686

Total operating income (loss)
(1,152
)
 
(13,939
)
 
18,471

 

 
3,380

Other income and (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(33,145
)
 
(608
)
 
(5,956
)
 
5,942

 
(33,767
)
Interest income
756

 
(12
)
 
5,407

 
(5,942
)
 
209

Other

 
(81
)
 
(3,547
)
 

 
(3,628
)
Equity in net earnings of subsidiaries
(29,316
)
 

 

 
29,316

 

Total other income (expense)
(61,705
)
 
(701
)
 
(4,096
)
 
29,316

 
(37,186
)
Income (benefit) before income taxes
(62,857
)
 
(14,640
)
 
14,375

 
29,316

 
(33,806
)
Total income tax expense (benefit)
(3,430
)
 
(5,656
)
 
33,918

 

 
24,832

Net income (loss)
(59,427
)
 
(8,984
)
 
(19,543
)
 
29,316

 
(58,638
)
Less: Net income attributable to noncontrolling interest

 

 
789

 

 
789

Net income (loss) attributable to controlling interest
$
(59,427
)
 
$
(8,984
)
 
$
(20,332
)
 
$
29,316

 
$
(59,427
)

(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)

 
Nine Months Ended September 30, 2014
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Total revenues
$

 
$
396,536

 
$
461,460

 
$
(132,525
)
 
$
725,471

Operating expenses

 
222,846

 
411,070

 
(132,525
)
 
501,391

Depreciation and amortization

 
63,343

 
43,323

 

 
106,666

Total operating gross margin

 
110,347

 
7,067

 

 
117,414

General and administration expense (1)
(195
)
 
(23,806
)
 
(1,340
)
 

 
(25,341
)
Gain (loss) on disposition of assets, net
(79
)
 
522

 
(10
)
 

 
433

Total operating income (loss)
(274
)
 
87,063

 
5,717

 

 
92,506

Other income and (expense):
 
 
 
 
 
 
 
 
 
Interest expense
(35,542
)
 
(120
)
 
(6,356
)
 
8,532

 
(33,486
)
Interest income
632

 
553

 
7,503

 
(8,532
)
 
156

Extinguishment of debt
(30,152
)
 

 

 

 
(30,152
)
Other

 
860

 
531

 

 
1,391

Equity in net earnings of subsidiaries
50,591

 

 

 
(50,591
)
 

Total other income (expense)
(14,471
)
 
1,293

 
1,678

 
(50,591
)
 
(62,091
)
Income (loss) before income taxes
(14,745
)
 
88,356

 
7,395

 
(50,591
)
 
30,415

Total income tax expense (benefit)
(30,443
)
 
34,187

 
10,349

 

 
14,093

Net income (loss)
15,698

 
54,169

 
(2,954
)
 
(50,591
)
 
16,322

Less: Net income attributable to noncontrolling interest

 

 
624

 

 
624

Net income (loss) attributable to controlling interest
$
15,698

 
$
54,169

 
$
(3,578
)
 
$
(50,591
)
 
$
15,698


(1) General and administration expenses for field operations are included in operating expenses.
PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
(Dollars in Thousands)
(Unaudited)

 
Three Months Ended September 30, 2015
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Comprehensive income:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
(48,620
)
 
$
(4,119
)
 
$
(25,656
)
 
$
29,913

 
$
(48,482
)
Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
 
Currency translation difference on related borrowings

 

 
(1,285
)
 

 
(1,285
)
Currency translation difference on foreign currency net investments

 

 
588

 

 
588

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

 

 
(697
)
 

 
(697
)
Comprehensive income (loss)
(48,620
)
 
(4,119
)
 
(26,353
)
 
29,913

 
(49,179
)
Comprehensive (loss) attributable to noncontrolling interest

 

 
(82
)
 

 
(82
)
Comprehensive income (loss) attributable to controlling interest
$
(48,620
)
 
$
(4,119
)
 
$
(26,435
)
 
$
29,913

 
$
(49,261
)



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

 
Three Months Ended September 30, 2014
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Comprehensive income:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
12,566

 
$
19,980

 
$
(227
)
 
$
(19,442
)
 
$
12,877

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
 
Currency translation difference on related borrowings

 

 
(1,780
)
 

 
(1,780
)
Currency translation difference on foreign currency net investments

 

 
615

 

 
615

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

 

 
(1,165
)
 

 
(1,165
)
Comprehensive income (loss)
12,566

 
19,980

 
(1,392
)
 
(19,442
)
 
11,712

Comprehensive (loss) attributable to noncontrolling interest

 

 
(289
)
 

 
(289
)
Comprehensive income (loss) attributable to controlling interest
$
12,566

 
$
19,980

 
$
(1,681
)
 
$
(19,442
)
 
$
11,423











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

 
Nine Months Ended September 30, 2015
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Comprehensive income:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
(59,427
)
 
$
(8,984
)
 
$
(19,543
)
 
$
29,316

 
$
(58,638
)
Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
 
Currency translation difference on related borrowings

 

 
(2,308
)
 

 
(2,308
)
Currency translation difference on foreign currency net investments

 

 
1,462

 

 
1,462

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

 

 
(846
)
 

 
(846
)
Comprehensive income (loss)
(59,427
)
 
(8,984
)
 
(20,389
)
 
29,316

 
(59,484
)
Comprehensive (loss) attributable to noncontrolling interest

 

 
(571
)
 

 
(571
)
Comprehensive income (loss) attributable to controlling interest
$
(59,427
)
 
$
(8,984
)
 
$
(20,960
)
 
$
29,316

 
$
(60,055
)



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

 
Nine Months Ended September 30, 2014
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Comprehensive income:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
15,698

 
$
54,169

 
$
(2,954
)
 
$
(50,591
)
 
$
16,322

Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
 
Currency translation difference on related borrowings

 

 
(2,248
)
 

 
(2,248
)
Currency translation difference on foreign currency net investments

 

 
1,126

 

 
1,126

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

 

 
(1,122
)
 

 
(1,122
)
Comprehensive income (loss)
15,698

 
54,169

 
(4,076
)
 
(50,591
)
 
15,200

Comprehensive (loss) attributable to noncontrolling interest

 

 
(523
)
 

 
(523
)
Comprehensive income (loss) attributable to controlling interest
$
15,698

 
$
54,169

 
$
(4,599
)
 
$
(50,591
)
 
$
14,677

PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
 
 
Nine Months Ended September 30, 2015
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
(59,427
)
 
$
(8,984
)
 
$
(19,543
)
 
$
29,316

 
$
(58,638
)
Adjustments to reconcile net income (loss):
 
 
 
 
 
 
 
 
 
Depreciation and amortization

 
71,270

 
47,204

 

 
118,474

Accretion of contingent consideration

 

 
547

 

 
547

Provision for reduction in carrying value of certain assets

 
920

 
2,302

 

 
3,222

Gain on disposition of assets

 
(452
)
 
(2,234
)
 

 
(2,686
)
Deferred income tax expense
(24,184
)
 
10,032

 
24,411

 

 
10,259

Expenses not requiring cash
6,498

 
2,677

 
(1,146
)
 

 
8,029

Equity in net earnings of subsidiaries
29,316

 

 

 
(29,316
)
 

Change in assets and liabilities:
 
 
 
 
 
 
 
 
 
Accounts and notes receivable
(33
)
 
36,694

 
14,593

 

 
51,254

Other assets
(121,465
)
 
110,017

 
12,934

 

 
1,486

Accounts payable and accrued liabilities
(10,480
)
 
(168
)
 
(5,142
)
 

 
(15,790
)
Accrued income taxes
6,481

 
(2,081
)
 
(11,705
)
 

 
(7,305
)
Net cash provided by (used in) operating activities
(173,294
)
 
219,925

 
62,221

 

 
108,852

 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures

 
(50,396
)
 
(22,073
)
 

 
(72,469
)
Proceeds from the sale of assets

 
489

 
242

 

 
731

Proceeds from insurance settlements

 

 
2,500

 

 
2,500

Acquisition, net of cash acquired

 
(10,431
)
 

 

 
(10,431
)
Net cash (used in) investing activities

 
(60,338
)
 
(19,331
)
 

 
(79,669
)
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Repayments of long-term debt
(30,000
)
 

 

 

 
(30,000
)
Payment of debt issuance costs
(1,996
)
 

 

 

 
(1,996
)
Excess tax benefit from stock-based compensation
(992
)
 

 

 

 
(992
)
Intercompany advances, net
216,082

 
(165,133
)
 
(50,949
)
 

 

Net cash provided by (used in) financing activities
183,094

 
(165,133
)
 
(50,949
)
 

 
(32,988
)
 
 
 
 
 
 
 
 
 
 
Net change in cash and cash equivalents
9,800

 
(5,546
)
 
(8,059
)
 

 
(3,805
)
Cash and cash equivalents at beginning of year
36,728

 
13,546

 
58,182

 

 
108,456

Cash and cash equivalents at end of year
$
46,528

 
$
8,000

 
$
50,123

 
$

 
$
104,651





PARKER DRILLING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
 
Nine Months Ended September 30, 2014
 
Parent
 
Guarantor
 
Non-Guarantor
 
Eliminations
 
Consolidated
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
Net income (loss)
$
15,698

 
$
54,169

 
$
(2,954
)
 
$
(50,591
)
 
$
16,322

Adjustments to reconcile net income (loss)
 
 
 
 
 
 
 
 
 
Depreciation and amortization

 
63,343

 
43,323

 

 
106,666

Loss on extinguishment of debt
30,152

 

 

 

 
30,152

Gain on disposition of assets
79

 
(522
)
 
10

 

 
(433
)
Deferred income tax expense
(15,774
)
 
12,525

 
3,322

 

 
73

Expenses not requiring cash
9,940

 
(1,538
)
 
1,739

 

 
10,141

Equity in net earnings of subsidiaries
(50,591
)
 

 

 
50,591

 

Change in assets and liabilities:
 
 
 
 
 
 
 
 
 
Accounts and notes receivable

 
(1,715
)
 
(3,473
)
 

 
(5,188
)
Other assets
43,412

 
(58,441
)
 
22,583

 

 
7,554

Accounts payable and accrued liabilities
(8,213
)
 
(9,395
)
 
7,069

 

 
(10,539
)
Accrued income taxes
(13,232
)
 
11,764

 
(8,929
)
 

 
(10,397
)
Net cash provided by (used in) operating activities
11,471

 
70,190

 
62,690

 

 
144,351

 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Capital expenditures

 
(107,137
)
 
(43,972
)
 

 
(151,109
)
Proceeds from the sale of assets

 
1,088

 
1,206

 

 
2,294

Net cash (used in) investing activities

 
(106,049
)
 
(42,766
)
 

 
(148,815
)
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Proceeds from debt issuance
400,000

 

 

 

 
400,000

Repayments of long-term debt
(432,500
)
 

 

 

 
(432,500
)
Payment of debt issuance costs
(7,630
)
 

 

 

 
(7,630
)
Payment of debt extinguishment costs
(26,214
)
 

 

 

 
(26,214
)
Excess tax benefit from stock-based compensation
430

 

 

 

 
430

Intercompany advances, net
(10,677
)
 
40,064

 
(29,387
)
 

 

Net cash provided by (used in) financing activities
(76,591
)
 
40,064

 
(29,387
)
 

 
(65,914
)
 
 
 
 
 
 
 
 
 
 
Net change in cash and cash equivalents
(65,120
)
 
4,205

 
(9,463
)
 

 
(70,378
)
Cash and cash equivalents at beginning of year
88,697

 
8,310

 
51,682

 

 
148,689

Cash and cash equivalents at end of year
$
23,577

 
$
12,515

 
$
42,219

 
$

 
$
78,311