-
EBITDA(a) for the fourth quarter of $96.3 million and
adjusted EBITDA(a) for the full year of $358.1 million, an
increase of 35% over the prior year
-
Revenue for the fourth quarter of $200.5 million and for the full year
of $745.6 million, an increase of 17% over the prior year
-
Cash flow from operations for the full year of $230.6 million
-
Pacific Khamsin delivered on August 31 and contract commenced
on December 17, 2013
-
Signed commitment for two year extension of Pacific Bora contract
at $615,000 per day, conditional upon client’s partner approval
LUXEMBOURG--(BUSINESS WIRE)--
Pacific Drilling S.A. (NYSE: PACD) today announced revenue of $200.5
million and net income of $25.7 million or $0.12 per diluted share for
the fourth quarter of 2013. This compares to revenue of $193.2 million
and net income of $30.3 million or $0.14 per diluted share for the third
quarter of 2013. In the fourth quarter of 2012, the company had revenue
of $191.9 million and net income of $16.5 million or $0.08 per diluted
share.
For the year ended December 31, 2013, net income excluding $66.6 million
in non-recurring charges(b) related to the June 2013
refinancing of our credit facilities was $92.1 million or $0.43 per
diluted share, an increase of $81.8 million over the prior year net
income excluding charges. For the full year 2013, net income as reported
was $25.5 million or $0.12 per diluted share on revenue of $745.6
million, as compared to prior year net income of $34.0 million or $0.16
per diluted share on revenue of $638.1 million. A reconciliation of net
income excluding charges to reported net income is included in an
accompanying schedule to this release.
CEO Chris Beckett commented, “Pacific Drilling had an outstanding year
in 2013, in which we demonstrated that our focus on performance
excellence using a consistent fleet of high specification drillships
staffed by dedicated offshore professionals can deliver industry leading
results. With the commencement of the Pacific Khamsin’s contract
in December, we began the next phase of our company’s growth, which we
expect to continue at a significant pace over the next two years as we
begin operations with the Pacific Sharav, Pacific Meltem and
Pacific Zonda.”
Regarding the market for high specification drillships, Mr. Beckett
added, "Consistent with our expectations, the market for offshore rigs
is increasingly impacted by clients’ preferences for advanced drilling
capabilities. Demand for ultra-deepwater drillships is increasingly
segmented between the newest and most capable rigs and their 5th
generation predecessors as clients recognize the fundamental benefits of
the latest generation of rigs. The number of market inquiries for high
specification rigs has increased in the early part of 2014 as compared
to the fourth quarter of 2013, and we continue to see demand for modern
ultra-deepwater rigs exceed forecasted supply over the next several
years. Our strong operating performance led to the recent two-year
conditional commitment for the Pacific Bora and supports our
ongoing negotiations for contract extension of the Pacific Mistral
and a maiden contract on the Pacific Meltem, one of the
few remaining high specification drillships available for a 2014
contract commencement.”
Fourth Quarter and Full Year 2013 Operational
and Financial Commentary
Contract drilling revenue for the fourth quarter of 2013 was $200.5
million, which included $20.2 million of deferred revenue amortization,
as compared to contract drilling revenue of $193.2 million for the third
quarter of 2013, which included $18.2 million of deferred revenue
amortization. During the three months ended December 31, 2013, our
operating fleet achieved average revenue efficiency(c) of
95.6% as compared to 96.9% in the prior quarter. For the fourth quarter
of 2013, our first four drillships continued to deliver strong
operational efficiency, while the newly delivered Pacific Khamsin
experienced minimal downtime. Contract drilling revenue for the year
ended December 31, 2013, was $745.6 million, including $72.5 million of
deferred revenue amortization, as compared to contract drilling revenue
of $638.1 million, including $95.8 million of deferred revenue
amortization, for the year ended December 31, 2012.
For the full year 2013, our operating fleet achieved an average revenue
efficiency of 93.5%, as compared to 88.0% during the prior year. The
increase in revenue efficiency was primarily due to completing the
shakedown period on our first four drillships.
Contract drilling expenses for the fourth quarter of 2013 were $90.6
million as compared to $82.7 million for the third quarter of 2013.
Contract drilling expenses for the fourth quarter of 2013 included $10.3
million in amortization of deferred costs, $5.6 million in reimbursable
expenses and $7.3 million in shore-based and other support costs. Direct
rig related daily operating expenses, excluding reimbursable costs,
averaged $176,200 in the fourth quarter of 2013, as compared to $163,400
for the third quarter of 2013. The increase in contract drilling
expenses resulted from planned maintenance projects on most of our rigs
in the fourth quarter. Contract drilling expenses for the full year 2013
were $337.3 million as compared to $331.5 million for the full year
2012. Contract drilling expenses for 2013 included $39.5 million in
amortization of deferred mobilization costs, $20.9 million in
reimbursable expenses and $25.4 million in shore-based and other support
costs. Direct rig related daily operating expenses, excluding
reimbursable costs, averaged $170,600 for the full year 2013, as
compared to $178,300 for the full year 2012. The decrease in average
direct rig related daily operating expenses was primarily the result of
lower equipment and maintenance costs in 2013, as compared to 2012 which
included rig startup costs for our first four operating rigs. In
addition, our focus on reducing logistics and operational overhead costs
contributed to the decrease in daily operating expenses.
General and administrative expenses for the fourth quarter of 2013 were
$13.0 million as compared to $13.1 million for the third quarter of
2013. General and administrative expenses for the full year 2013 were
$48.6 million as compared to $45.4 million for the prior year.
EBITDA(a) for the fourth quarter of 2013 was $96.3 million,
essentially in line with the prior quarter. Adjusted EBITDA for the year
ended December 31, 2013, was $358.1 million as compared to $264.4
million for the year ended December 31, 2012. Adjusted EBITDA margin(d)
for the full year 2013 was 48.0%, as compared to 41.4% for the full year
2012. A reconciliation of EBITDA and adjusted EBITDA is included in the
accompanying schedules to this release.
Interest expense for the fourth quarter of 2013 was $25.8 million, as
compared to $23.8 million for the third quarter of 2013. The increased
interest expense was mainly a result of interest recognition following
the commencement of the Pacific Khamsin’s drilling contract on
December 17, 2013. Interest expense for the full year 2013 was $94.0
million, excluding non-recurring costs incurred in connection with the
refinancing of our credit facilities, as compared to interest expense of
$104.7 million in the prior year.
Liquidity and Capital Expenditures
For the full year 2013, cash flow from operations was $230.6 million. As
a result of strong cash flow throughout 2013 and delayed capital
expenditures on the Pacific Sharav and the Pacific Meltem,
we were able to delay drawdowns on our $1 billion senior secured credit
facility until the last few days of 2013. Following the year end
drawdown of $139 million from our senior secured credit facility, our
total outstanding debt as of December 31, 2013, was $2.4 billion and our
cash balances were $204.1 million. As of December 31, 2013, undrawn
capacity under our senior secured credit facility and our revolving
credit facility was $1.1 billion.
During the fourth quarter of 2013, our capital expenditures were $103.9
million of which $67.1 million related to the construction of our
newbuild drillships. Capitalized interest amounted to $23.3 million. The
remaining expenditures primarily relate to contractually required
upgrades on our operating rigs that are partially or fully reimbursed by
our customers, as well as fleet spares. We estimate the remaining
capital expenditures required to complete construction of our three
newbuild drillships and the continued build up of our fleet spares to be
approximately $1.45 billion, excluding capitalized interest and client
reimbursed asset upgrades.
2014 Guidance
We reiterate our guidance on revenue efficiency provided with our fleet
status report on February 3, 2014. The average revenue efficiency ranges
of 88-92% for the first quarter of 2014 and 90–94% for the full year
2014 include our expectations for unplanned downtime as well as planned
events mainly related to export and reimport of rigs in Nigeria,
completed in the first quarter of 2014. The guidance is also reflective
of required inspections across the fleet and the initial stages of the
shakedown process for the Pacific Khamsin, Pacific Sharav and Pacific
Meltem, during which we expect their revenue efficiency to lag
current levels of our first four operating rigs and their operating
expenses to exceed those of our other rigs by approximately $20,000 per
day during the shakedown period. As we have previously stated, we expect
an average revenue efficiency of 90% during a rig’s first six months of
operations and 93% during a rig’s second six months of operations.
However, revenue efficiency for individual rigs tends to be volatile on
a monthly and even on a quarterly basis. Revenue efficiency during 2014
may therefore be above or below our expectations.
|
The following table summarizes our updated full year 2014 guidance
for certain items:
|
|
Item
|
|
|
|
Range
|
|
Direct Rig Related Operating Expenses,
Excluding Reimbursable Expenses, Per Rig Per Day
|
|
|
|
$181,000 - $187,000
|
|
Minimum Average Reimbursable Expenses, Per Rig Per Day*
|
|
|
|
$10,000
|
|
Shore-Based & Other Support Costs, Per Rig Per Day
|
|
|
|
$18,000 - $20,000
|
|
General & Administrative Expenses
|
|
|
|
$57 million - $59 million
|
|
Income Tax Expense as Percent of Total Contract
Drilling Revenue
|
|
|
|
3% - 4%
|
* These reimbursable costs include one-time as well as recurring
items that are beyond the initial scope of our contract and the
corresponding initial contractual dayrate, but are subject to
reimbursement from our clients. Reimbursable costs can be highly
variable from one quarter to another. Because the reimbursement of these
costs by our clients is recorded as additional revenue, they generally
do not negatively affect our margins.
Updated schedules through 2015 of expected amortization of deferred
revenue, amortization of deferred mobilization expense and depreciation
as well as capital expenditures are included in the “Investor Toolkit”
subsection of the “Investor Relations” section of our website, www.pacificdrilling.com.
Please note the guidance provided above is based on management’s current
expectations about the future and both stated and unstated assumptions,
and does not constitute any form of guarantee, assurance or promise that
the matters indicated will actually be achieved. Actual conditions and
assumptions are subject to change. The guidance set forth above is
subject to all cautionary statements and limitations described under the
“Forward-Looking Statements” section of this press release.
Footnotes
(a) EBITDA and adjusted EBITDA are non-GAAP measures. Please
refer to the reconciliation, included later in this press release, of
net income to EBITDA and adjusted EBITDA along with a definition of this
measure and a statement indicating why management believes the non-GAAP
measure provides useful information for investors.
(b) Net income excluding charges is a non-GAAP measure.
Please refer to the reconciliation, included later in this press
release, of net income to net income excluding charges along with a
definition of this measure and a statement indicating why management
believes the non-GAAP measure provides useful information for investors.
(c) Revenue efficiency is defined as actual contractual
dayrate revenue (excluding mobilization fees, upgrade reimbursements and
other revenue sources) divided by the maximum amount of contractual
dayrate revenue that could have been earned during such period.
(d) EBITDA margin is defined as EBITDA divided by contract
drilling revenue. Adjusted EBITDA margin is defined as adjusted EBITDA
divided by contract drilling revenue. Management uses this operational
metric to track company results and believes that this measure provides
additional information that consolidates the impact of our operating
efficiency as well as the operating and support costs incurred in
achieving the revenue performance.
Conference Call
Pacific Drilling will conduct a conference call at 10:00 a.m. U.S.
Central Standard Time on Wednesday, February 26, 2014, to discuss fourth
quarter and full year 2013 results. To participate, please dial +1
719-325-4789 or 1-877-419-6594 and refer to confirmation code 1620722
approximately five to ten minutes prior to the scheduled start time of
the call. The call will also be broadcast live over the Internet in a
listen-only mode and can be accessed by a link posted in the “Events &
Presentations” subsection of the “Investor Relations” section of the
company’s website, www.pacificdrilling.com.
An audio replay of the conference call will be available after 1:00 p.m.
U.S. Central Time on Wednesday, February 26, 2014, by dialing +1
719-457-0820 or 1-888-203-1112 and using access code 1620722. A replay
of the call will also be available on the company’s website.
About Pacific Drilling
With its best-in-class drillships and highly experienced team, Pacific
Drilling is a fast growing company that is committed to becoming the
industry’s preferred ultra-deepwater drilling contractor. Pacific
Drilling’s fleet of eight ultra-deepwater drillships will represent one
of the youngest and most technologically advanced fleets in the world.
The company currently operates five drillships under customer contract,
and has three drillships under construction at Samsung, one of which is
under customer contract. For more information about Pacific Drilling,
including our current Fleet Status, please visit our website at www.pacificdrilling.com.
Forward-Looking Statements
Certain statements and information contained in this press release (and
oral statements made regarding the subjects of this press release,
including the conference call announced herein) constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements typically include words or phrases such as “believe,”
“expect,” “anticipate,” “project,” “plan,” “intend,” “foresee,”
“forecast,” “our ability to,” “estimate,” “potential,” “will,” “should,”
“would,” “could” or other similar words, or negatives of such words,
which are generally not historical in nature. Such forward-looking
statements specifically include statements involving future operational
performance; revenue efficiency levels; future client contract
opportunities; estimated duration of client contracts; contract dayrate
amounts; future contract commencement dates and locations; contract
backlog; construction, timing and delivery of newbuild drillships;
capital expenditures; growth opportunities; market outlook; cost
adjustments; estimated rig availability; new rig commitments; the
expected period of time and number of rigs that will be in a shipyard
for repairs, maintenance, enhancement or construction; expected direct
rig operating costs, compensation levels, shore based support costs,
general and administrative expenses, income tax expense; expected
amortization of deferred revenue; expected amortization of deferred
mobilization expenses; and expected depreciation and interest expense
for the existing credit facilities and senior bonds. These
forward-looking statements are based on our current expectations and
beliefs concerning future developments and their potential effect on us.
While management believes that these forward-looking statements are
reasonable as and when made, there can be no assurance that future
developments affecting us will be those that we anticipate. All comments
concerning our expectations for future revenue and operating results,
operating revenue efficiency, projected operating expenses and
reimbursable costs are based on our forecasts for our existing
operations and do not include the potential impact of any future
acquisitions. Our forward-looking statements involve significant risks
and uncertainties (some of which are beyond our control) and assumptions
that could cause actual results to differ materially from our historical
experience and our present expectations or projections. Important
factors that could cause actual results to differ materially from those
provided in our guidance, projected cash flows and other statements in
the forward-looking statements contained in this press release, our
investor toolkit and elsewhere include, but are not limited to: our
ability to secure and maintain drilling contracts, including possible
cancellation or suspension of drilling contracts as a result of
mechanical difficulties, performance or other reasons; unplanned
downtime and other risks associated with offshore rig operations,
including unscheduled repairs or maintenance; risks inherent in shipyard
rig construction, repair, maintenance or enhancement; changes in
worldwide rig supply and demand, competition and technology; future
levels of offshore drilling activity; future client contract
opportunities; relocations, severe weather or hurricanes; impact of
potential licensing or patent litigation; actual contract commencement
dates; environmental and other liabilities, risks or losses;
governmental regulatory, legislative and permitting requirements
affecting drilling operations; our ability to attract and retain skilled
personnel on commercially reasonable terms; governmental action, civil
unrest and political and economic uncertainties; terrorism, piracy and
military action; and the outcome of litigation, legal proceedings,
investigations or other claims or contract disputes.
For additional information regarding known material risk factors that
could cause our actual results to differ from our projected results,
please see our filings with the Securities and Exchange Commission
(SEC), including our Annual Report on Form 20-F and Current Reports on
Form 6-K. These documents are available through our website at www.pacificdrilling.com
or through the SEC’s Electronic Data and Analysis Retrieval System at www.sec.gov.
Readers are cautioned not to place undue reliance on forward-looking
statements, which speak only as of the date hereof. We undertake no
obligation to publicly update or revise any forward-looking statements
after the date they are made, whether as a result of new information,
future events or otherwise.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PACIFIC DRILLING S.A. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Operations
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Years Ended December 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
|
|
$
|
200,546
|
|
|
$
|
191,890
|
|
|
$
|
745,574
|
|
|
$
|
638,050
|
|
|
$
|
65,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
|
|
|
(90,636
|
)
|
|
|
(86,931
|
)
|
|
|
(337,277
|
)
|
|
|
(331,495
|
)
|
|
|
(32,142
|
)
|
|
General and administrative expenses
|
|
|
(12,956
|
)
|
|
|
(11,636
|
)
|
|
|
(48,614
|
)
|
|
|
(45,386
|
)
|
|
|
(52,614
|
)
|
|
Depreciation expense
|
|
|
(39,713
|
)
|
|
|
(36,463
|
)
|
|
|
(149,465
|
)
|
|
|
(127,698
|
)
|
|
|
(11,619
|
)
|
|
|
|
|
(143,305
|
)
|
|
|
(135,030
|
)
|
|
|
(535,356
|
)
|
|
|
(504,579
|
)
|
|
|
(96,375
|
)
|
|
Loss of hire insurance recovery
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
23,671
|
|
|
|
18,500
|
|
|
Operating income (loss)
|
|
|
57,241
|
|
|
|
56,860
|
|
|
|
210,218
|
|
|
|
157,142
|
|
|
|
(12,444
|
)
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs on interest rate swap termination
|
|
|
-
|
|
|
|
-
|
|
|
|
(38,184
|
)
|
|
|
-
|
|
|
|
-
|
|
|
Interest expense, other
|
|
|
(25,770
|
)
|
|
|
(32,747
|
)
|
|
|
(94,027
|
)
|
|
|
(104,685
|
)
|
|
|
(10,384
|
)
|
|
Total interest expense
|
|
|
(25,770
|
)
|
|
|
(32,747
|
)
|
|
|
(132,211
|
)
|
|
|
(104,685
|
)
|
|
|
(10,384
|
)
|
|
Costs on extinguishment of debt
|
|
|
-
|
|
|
|
-
|
|
|
|
(28,428
|
)
|
|
|
-
|
|
|
|
-
|
|
|
Equity in earnings of Joint Venture
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
18,955
|
|
|
Interest income from Joint Venture
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
495
|
|
|
Other income (expense)
|
|
|
(608
|
)
|
|
|
(614
|
)
|
|
|
(1,554
|
)
|
|
|
3,245
|
|
|
|
3,675
|
|
|
Income before income taxes
|
|
|
30,863
|
|
|
|
23,499
|
|
|
|
48,025
|
|
|
|
55,702
|
|
|
|
297
|
|
|
Income tax expense
|
|
|
(5,173
|
)
|
|
|
(7,034
|
)
|
|
|
(22,523
|
)
|
|
|
(21,713
|
)
|
|
|
(3,200
|
)
|
|
Net income (loss)
|
|
$
|
25,690
|
|
|
$
|
16,465
|
|
|
$
|
25,502
|
|
|
$
|
33,989
|
|
|
$
|
(2,903
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share, basic
|
|
$
|
0.12
|
|
|
$
|
0.08
|
|
|
$
|
0.12
|
|
|
$
|
0.16
|
|
|
$
|
(0.01
|
)
|
|
Weighted average number of common shares, basic
|
|
|
217,022
|
|
|
|
216,902
|
|
|
|
216,964
|
|
|
|
216,901
|
|
|
|
195,448
|
|
|
Earnings (loss) per common share, diluted
|
|
$
|
0.12
|
|
|
$
|
0.08
|
|
|
$
|
0.12
|
|
|
$
|
0.16
|
|
|
$
|
(0.01
|
)
|
|
Weighted average number of common shares, diluted
|
|
|
217,429
|
|
|
|
216,943
|
|
|
|
217,421
|
|
|
|
216,903
|
|
|
|
195,448
|
|
|
|
|
|
|
|
|
|
|
PACIFIC DRILLING S.A. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except
par value)
|
|
|
|
|
December 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
|
|
|
(unaudited)
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
204,123
|
|
|
$
|
605,921
|
|
|
Restricted cash
|
|
|
-
|
|
|
|
47,444
|
|
|
Accounts receivable
|
|
|
206,078
|
|
|
|
152,299
|
|
|
Materials and supplies
|
|
|
65,709
|
|
|
|
49,626
|
|
|
Current portion of deferred financing costs
|
|
|
14,857
|
|
|
|
17,707
|
|
|
Current portion of deferred costs
|
|
|
48,202
|
|
|
|
37,519
|
|
|
Prepaid expenses and other current assets
|
|
|
13,889
|
|
|
|
13,930
|
|
|
Total current assets
|
|
|
552,858
|
|
|
|
924,446
|
|
|
Property and equipment, net
|
|
|
4,512,154
|
|
|
|
3,760,421
|
|
|
Restricted cash
|
|
|
-
|
|
|
|
124,740
|
|
|
Deferred financing costs
|
|
|
53,300
|
|
|
|
32,157
|
|
|
Other assets
|
|
|
45,728
|
|
|
|
52,164
|
|
|
Total assets
|
|
$
|
5,164,040
|
|
|
$
|
4,893,928
|
|
|
Liabilities and shareholders' equity:
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
54,235
|
|
|
$
|
30,230
|
|
|
Accrued expenses
|
|
|
66,026
|
|
|
|
39,345
|
|
|
Current portion of long-term debt
|
|
|
7,500
|
|
|
|
218,750
|
|
|
Accrued interest
|
|
|
21,984
|
|
|
|
29,594
|
|
|
Derivative liabilities, current
|
|
|
4,984
|
|
|
|
17,995
|
|
|
Current portion of deferred revenue
|
|
|
96,658
|
|
|
|
66,142
|
|
|
Total current liabilities
|
|
|
251,387
|
|
|
|
402,056
|
|
|
Long-term debt, net of current maturities
|
|
|
2,423,337
|
|
|
|
2,034,958
|
|
|
Deferred revenue
|
|
|
88,465
|
|
|
|
97,014
|
|
|
Other long-term liabilities
|
|
|
927
|
|
|
|
44,652
|
|
|
Total long-term liabilities
|
|
|
2,512,729
|
|
|
|
2,176,624
|
|
|
Shareholders' equity:
|
|
|
|
|
|
|
|
Common shares, $0.01 par value per share, 5,000,000 shares
|
|
|
|
|
|
|
|
authorized, 224,100 shares issued and 217,035
|
|
|
|
|
|
|
|
and 216,902 shares outstanding as of December 31,
|
|
|
|
|
|
|
|
2013 and December 31, 2012, respectively
|
|
|
2,170
|
|
|
|
2,169
|
|
|
Additional paid-in capital
|
|
|
2,358,858
|
|
|
|
2,349,544
|
|
|
Accumulated other comprehensive loss
|
|
|
(8,557
|
)
|
|
|
(58,416
|
)
|
|
Retained earnings
|
|
|
47,453
|
|
|
|
21,951
|
|
|
Total shareholders' equity
|
|
|
2,399,924
|
|
|
|
2,315,248
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
5,164,040
|
|
|
$
|
4,893,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PACIFIC DRILLING S.A. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in thousands)
|
|
|
|
|
|
|
|
Years Ended December 31,
|
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
25,502
|
|
|
$
|
33,989
|
|
|
$
|
(2,903)
|
|
Adjustments to reconcile net income (loss) to net cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
provided by (used in) operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation expense
|
|
|
|
149,465
|
|
|
|
127,698
|
|
|
|
11,619
|
|
Amortization of deferred revenue
|
|
|
|
(72,515)
|
|
|
|
(95,750)
|
|
|
|
(8,566)
|
|
Amortization of deferred costs
|
|
|
|
39,479
|
|
|
|
70,660
|
|
|
|
4,288
|
|
Amortization of deferred financing costs
|
|
|
|
10,106
|
|
|
|
13,926
|
|
|
|
1,067
|
|
Amortization of debt discount
|
|
|
|
445
|
|
|
|
-
|
|
|
|
-
|
|
Provision for materials and supplies obsolescence
|
|
|
|
1,115
|
|
|
|
-
|
|
|
|
-
|
|
Write-off of unamortized deferred financing costs
|
|
|
|
27,644
|
|
|
|
-
|
|
|
|
-
|
|
Costs on interest rate swap termination
|
|
|
|
38,184
|
|
|
|
-
|
|
|
|
-
|
|
Deferred income taxes
|
|
|
|
(3,119)
|
|
|
|
(3,766)
|
|
|
|
(3,169)
|
|
Share-based compensation expense
|
|
|
|
9,315
|
|
|
|
5,318
|
|
|
|
4,471
|
|
Equity in earnings of Joint Venture
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(18,955)
|
|
Interest income from Joint Venture
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(495)
|
|
Changes in operating assets and liabilities:
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(53,779)
|
|
|
|
(89,721)
|
|
|
|
(45,051)
|
|
Materials and supplies
|
|
|
|
(17,198)
|
|
|
|
(6,640)
|
|
|
|
(35,031)
|
|
Prepaid expenses and other assets
|
|
|
|
(30,840)
|
|
|
|
(61,548)
|
|
|
|
(108,593)
|
|
Accounts payable and accrued expenses
|
|
|
|
12,301
|
|
|
|
33,865
|
|
|
|
39,437
|
|
Deferred revenue
|
|
|
|
94,482
|
|
|
|
156,967
|
|
|
|
97,550
|
|
Net cash provided by (used in) operating activities
|
|
|
|
230,587
|
|
|
|
184,998
|
|
|
|
(64,331)
|
|
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(876,142)
|
|
|
|
(449,951)
|
|
|
|
(1,539,630)
|
|
Decrease (increase) in restricted cash
|
|
|
|
172,184
|
|
|
|
204,784
|
|
|
|
(315,286)
|
|
Net cash used in investing activities
|
|
|
|
(703,958)
|
|
|
|
(245,167)
|
|
|
|
(1,854,916)
|
|
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common shares, net
|
|
|
|
-
|
|
|
|
-
|
|
|
|
625,816
|
|
Proceeds from long-term debt
|
|
|
|
1,656,250
|
|
|
|
797,415
|
|
|
|
1,275,000
|
|
Payments on long-term debt
|
|
|
|
(1,480,000)
|
|
|
|
(218,750)
|
|
|
|
(50,000)
|
|
Payment for costs on interest rate swap termination
|
|
|
|
(41,993)
|
|
|
|
-
|
|
|
|
-
|
|
Deferred financing costs
|
|
|
|
(62,684)
|
|
|
|
(19,853)
|
|
|
|
(6,803)
|
|
Proceeds from related-party loan
|
|
|
|
-
|
|
|
|
-
|
|
|
|
142,205
|
|
Net cash provided by financing activities
|
|
|
|
71,573
|
|
|
|
558,812
|
|
|
|
1,986,218
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
|
(401,798)
|
|
|
|
498,643
|
|
|
|
66,971
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
605,921
|
|
|
|
107,278
|
|
|
|
40,307
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
204,123
|
|
|
$
|
605,921
|
|
|
$
|
107,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA and Adjusted EBITDA Reconciliation
EBITDA is defined as earnings before interest, taxes, depreciation and
amortization. Adjusted EBITDA is defined as earnings before interest,
costs from debt refinancing, loss of hire insurance, taxes, depreciation
and amortization. EBITDA and adjusted EBITDA do not represent and should
not be considered alternatives to net income, operating income, cash
flow from operations or any other measure of financial performance
presented in accordance with generally accepted accounting principles in
the United States of America (“GAAP”) and our calculation of EBITDA and
adjusted EBITDA may not be comparable to that reported by other
companies. EBITDA and adjusted EBITDA are included herein because they
are used by the company to measure its operations and are intended to
exclude charges or credits of a non-routine nature that would detract
from an understanding of our operations. Management believes that EBITDA
and adjusted EBITDA present useful information to investors regarding
the company's operating performance during the fourth quarter and full
year of 2013.
|
|
|
PACIFIC DRILLING S.A. AND SUBSIDIARIES
Supplementary Data - Reconciliation of Net Income (Loss) to
Non-GAAP EBITDA and Adjusted EBITDA
(in thousands) (unaudited)
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
Years Ended December 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
25,690
|
|
$
|
16,465
|
|
$
|
25,502
|
|
$
|
33,989
|
|
|
$
|
(2,903
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add (subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs on interest rate swap termination
|
|
|
-
|
|
|
-
|
|
|
38,184
|
|
|
-
|
|
|
|
-
|
|
|
Interest expense, other, net
|
|
|
25,770
|
|
|
32,747
|
|
|
94,027
|
|
|
104,685
|
|
|
|
9,889
|
|
|
Interest expense
|
|
|
25,770
|
|
|
32,747
|
|
|
132,211
|
|
|
104,685
|
|
|
|
9,889
|
|
|
Depreciation expense
|
|
|
39,713
|
|
|
36,463
|
|
|
149,465
|
|
|
127,698
|
|
|
|
11,619
|
|
|
Income taxes
|
|
|
5,173
|
|
|
7,034
|
|
|
22,523
|
|
|
21,713
|
|
|
|
3,200
|
|
|
EBITDA
|
|
|
96,346
|
|
|
92,709
|
|
|
329,701
|
|
|
288,085
|
|
|
|
21,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add (subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs on extinguishment of debt
|
|
|
-
|
|
|
-
|
|
|
28,428
|
|
|
-
|
|
|
|
-
|
|
|
Loss of hire insurance recovery
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(23,671
|
)
|
|
|
(18,500
|
)
|
|
Adjusted EBITDA
|
|
|
96,346
|
|
|
92,709
|
|
|
358,129
|
|
|
264,414
|
|
|
|
3,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Excluding Charges Reconciliation
During the second quarter of 2013, the company closed a refinancing
transaction which resulted in material non-recurring costs of $66.6
million, primarily related to swap termination fees and the write-off of
unamortized debt issue costs. Management believes that net income
excluding charges related to our refinancing and loss of hire insurance
recovery provides useful and comparable information to investors
regarding the company’s operating performance. Specifically, the
excluded charges are of a non-routine nature and detract from an
understanding of our operating performance and comparisons with other
periods. Net income excluding charges does not represent and should not
be considered an alternative to or substitute for net income, operating
income, cash flow from operations or any other measure of financial
performance presented in accordance with GAAP, and our calculation of
net income excluding charges may not be comparable to that reported by
other companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PACIFIC DRILLING S.A. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary Data - Reconciliation of Net Income (Loss) and
Earnings (Loss) per Share to Non-GAAP Net Income (Loss) Excluding
Charges and Earnings (Loss) per Share Excluding Charges
|
|
(in thousands, except per share information) (unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
Years Ended December 31,
|
|
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
|
$
|
25,690
|
|
|
|
$
|
16,465
|
|
|
|
$
|
25,502
|
|
|
|
$
|
33,989
|
|
|
|
|
$
|
(2,903
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add (subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss of hire insurance recovery
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(23,671
|
)
|
|
|
|
|
(18,500
|
)
|
|
Costs on interest rate swap termination
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
38,184
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
Costs on extinguishment of debt
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
28,428
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
Net income (loss) excluding charges
|
|
|
|
|
|
25,690
|
|
|
|
|
16,465
|
|
|
|
|
92,114
|
|
|
|
|
10,318
|
|
|
|
|
|
(21,403
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share, basic and diluted
|
|
|
|
|
$
|
0.12
|
|
|
|
$
|
0.08
|
|
|
|
$
|
0.12
|
|
|
|
$
|
0.16
|
|
|
|
|
$
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add (subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss of hire insurance recovery
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(0.11
|
)
|
|
|
|
|
(0.09
|
)
|
|
Costs on interest rate swap termination
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
0.18
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
Costs on extinguishment of debt
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
0.13
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
Earnings (loss) excluding charges per common share, basic and
diluted
|
|
|
|
|
|
0.12
|
|
|
|
|
0.08
|
|
|
|
|
0.43
|
|
|
|
|
0.05
|
|
|
|
|
|
(0.10
|
)
|
|
|
|
|
|
|
|
|
|
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Source: Pacific Drilling