-
Net income for the third quarter of $30.3 million or $0.14 per diluted
share
-
Outstanding operational performance during the third quarter with
average revenue efficiency(a) of 96.9% and average direct
rig related operating expenses, excluding reimbursable costs, of
$163,400 per day
-
EBITDA(b) for the third quarter of $96.6 million with an
EBITDA margin(c) of 50%
-
Cash flow from operations year to date of $193.6 million
-
Pacific Khamsin delivered on August 31 and contract
commencement expected on or about December 1, 2013
LUXEMBOURG--(BUSINESS WIRE)--
Pacific Drilling S.A. (NYSE: PACD) today announced revenue of $193.2
million for the three months ended September 30, 2013, as compared to
revenue of $176.8 million for the second quarter of 2013 and $172.0
million for the third quarter of 2012.
Net income for the third quarter of 2013 was $30.3 million or $0.14 per
diluted share, an increase of $9.3 million, representing a 44%
improvement over prior quarter net income excluding charges(d).
Net loss for the third quarter of the prior year was $2.0 million or
$0.01 per diluted share.
CEO Chris Beckett commented, “Pacific Drilling achieved industry leading
operational and financial results during the third quarter. After four
consecutive quarters of strong performance, I am particularly pleased to
see our strategic focus on operational excellence in the ultra-deepwater
market using the most modern assets begin to deliver the anticipated
benefits. I am also excited about the recent delivery of the Pacific
Khamsin, and look forward to the drillship joining our operating
fleet, which we expect to occur at the beginning of December. I am proud
of our team’s efforts in achieving these exceptional results during the
quarter, and know that they will continue to focus on the challenges
ahead as we continue to grow the fleet.”
Regarding the market for ultra-deepwater drillships, Mr. Beckett
continued, "As we have predicted for some time, our customers continue
to demonstrate their preference for the most capable assets. Dayrate
bifurcation has become more pronounced and vintage rigs are being
replaced by the newest assets. We believe this trend will persist
throughout 2014 and beyond. Tendering activity for high specification
drillships remains robust, and we continue to see demand for modern
ultra-deepwater rigs exceed forecast supply over the next several years.
With the attractive market backdrop, coupled with our strong operating
performance, we are finalizing the terms of a contract extension for the Pacific
Bora, continuing discussions regarding the contract extension of the Pacific
Mistral and further advancing our negotiations on the Pacific
Meltem, one of the few remaining newbuilds with 2014
availability.”
Third Quarter 2013 Operational and Financial
Commentary
Contract drilling revenue for the third quarter of 2013 was $193.2
million, which included $18.2 million of deferred revenue amortization,
as compared to contract drilling revenue of $176.8 million for the
second quarter of 2013. During the three months ended September 30,
2013, our operating fleet of four drillships achieved average revenue
efficiency of 96.9% as compared to 90.2% in the prior
quarter. The increase in revenue efficiency was the result of strong
operational uptime driven by low incidence of equipment breakdowns,
highlighting the success of our preventive maintenance systems and
employee training programs. In addition, during the quarter we
experienced relatively few periods of reduced dayrate from standby or
moving time and limited reduced dayrate related to performance or
equipment issues.
Contract drilling expenses for the third quarter of 2013 were $82.7
million as compared to $79.5 million for the second quarter of 2013.
Contract drilling expenses for the third quarter of 2013 included $9.8
million in amortization of deferred mobilization costs, $6.1 million in
reimbursable expenses and $6.6 million in shore-based and other support
costs. Shore-based and support costs increased by approximately $0.7
million compared to the second quarter of 2013 as a result of
incremental costs incurred by our Nigeria shore-base in preparation for Pacific
Khamsin’s operations. Direct rig related daily operating expenses,
excluding reimbursable costs, averaged $163,400 in the third quarter of
2013, as compared to $164,000 for the second quarter of 2013.
General and administrative expenses for the third quarter of 2013 were
$13.1 million as compared to $11.6 million for the second quarter of
2013. General and administrative expenses for the first nine months of
2013 were $35.7 million.
EBITDA for the third quarter of 2013 was $96.6 million, as compared to
adjusted EBITDA(b) of $85.5 million during the prior quarter.
EBITDA margin for the third quarter of 2013 was 50.0% as compared to
adjusted EBITDA margin(c) of 48.3% in the prior quarter.
Reconciliations of EBITDA, adjusted EBITDA and net income excluding
charges to reported net income are included in the accompanying
schedules to this release.
Interest expense for the third quarter was $23.8 million, as compared to
$21.7 million for the second quarter, excluding non-recurring costs
incurred in connection to the June 3, 2013, refinancing of our Project
Facilities Agreement. The increased interest expense was driven by the
full quarter impact of incremental liquidity raised during our June 3,
2013, debt refinancing.
Liquidity and Capital Expenditures
Our cash balances on September 30, 2013, were $133.9 million and our
total outstanding debt was $2.3 billion. During the quarter, cash flow
from operations reached $87.3 million on strong financial results and
improved customer collections. For the first nine months of 2013, cash
flow from operations was $193.6 million. As a result of strong cash flow
from operations during the quarter, we were able to finance incremental
construction payments for Pacific Sharav and Pacific Meltem
with cash on hand and were therefore not required to draw on our $1
billion senior secured credit facility. Therefore, we have $1.2 billion
of undrawn capacity under our existing credit facilities.
During the third quarter of 2013, our capital expenditures were $554.7
million of which $505.7 million related to the construction of our
newbuild drillships, including payment for delivery of Pacific
Khamsin from the shipyard. Capitalized interest amounted to $17.6
million. The remaining expenditures primarily relate to fleet spares,
including payments on additional blowout preventer capacity, as well as
contractually required upgrades on our operating rigs that are partially
or fully reimbursed by our customers. We estimate the remaining capital
expenditures required to complete construction of our three newbuild
drillships and develop spare blowout preventer and riser capacity to be
approximately $1.5 billion, excluding capitalized interest and client
reimbursed asset upgrades.
Updates to 2013 Guidance
We reiterate our guidance on revenue efficiency provided with our full
year 2012 results. This average revenue efficiency range of 91 - 94% for
the full year 2013 includes an assumption of Pacific Khamsin
contract commencement on December 1, 2013. This guidance is also
reflective of the initial stages of Pacific Khamsin’s shakedown
process, during which we expect its revenue efficiency to lag that of
our currently operating rigs and its operating expenses to exceed those
of our other rigs in Nigeria by approximately $20,000 per day. As we
have previously stated, we expect an average revenue efficiency of 90%
during a rig’s first six months of operations. However, revenue
efficiency for individual rigs tends to be volatile on a monthly and
even on a quarterly basis. Pacific Khamsin’s revenue efficiency
during the fourth quarter of 2013 may therefore be above or below our
expectations.
We are revising downward our full year 2013 guidance for certain cost
metrics as a result of our lower than expected operating and general and
administrative expenses year to date. The following table summarizes our
updated full year 2013 guidance for certain items:
|
|
|
|
|
|
|
|
|
Item
|
|
|
|
|
|
Range
|
|
Direct Rig Related Operating Expenses,
Excluding Reimbursable Expenses, Per Rig Per Day
|
|
|
|
|
|
$170,000 - $175,000
|
|
Minimum Average Reimbursable Expenses, Per Rig Per Day*
|
|
|
|
|
|
$7,000
|
|
Shore-Based & Other Support Costs Per Rig Day
|
|
|
|
|
|
$17,000 - $19,000
|
|
General & Administrative Expenses
|
|
|
|
|
|
$49 million - $51 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 between quarters. Because the reimbursement of these costs by
our clients is recorded as additional revenue, they do not generally
negatively affect our margins.
Updated schedules of expected amortization of deferred revenue,
amortization of deferred mobilization expense, depreciation and interest
expense for our existing financing 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) Revenue efficiency is defined as actual contractual
dayrate revenue (excludes 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.
(b) 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 the statement
indicating why management believes the non-GAAP measure provides useful
information for investors.
(c) 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.
(d) 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 the
statement indicating why management believes the non-GAAP measure
provides useful information for investors.
Conference Call
Pacific Drilling will conduct a conference call at 10:00 a.m. U.S.
Central Standard Time on Thursday, November 7, 2013, to discuss third
quarter 2013 results. To participate, please dial +1 785-830-7989 or
1-800-723-6498 and refer to confirmation code 5512982 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 Thursday, November 7, 2013, by dialing +1
719-457-0820 or 1-888-203-1112 and using access code 5512982. 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 four drillships under client contract,
has one drillship mobilizing to begin its drilling operations under
client contract and has three drillships under construction at Samsung
Heavy Industries, one of which is under client 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,” “our
ability to,” “estimate,” “potential,” “will,” “should,” “would,” “could”
or other similar 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; 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; 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 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 projected cash flows and other projections in the
forward-looking statements include, but are not limited to downtime and
other risks associated with offshore rig operations, including
unscheduled repairs or maintenance; relocations, severe weather or
hurricanes; 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; changes
in worldwide rig supply and demand, competition and technology; future
levels of offshore drilling activity; impact of potential licensing or
patent litigation; actual contract commencement dates; risks inherent to
shipyard rig construction, repair, maintenance or enhancement;
environmental or 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 share and per share information) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
2012
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
|
|
$
|
193,240
|
|
$
|
171,986
|
|
|
$
|
545,028
|
|
$
|
446,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
|
|
|
(82,719
|
)
|
|
(96,190
|
)
|
|
|
(246,641
|
)
|
|
(244,564
|
)
|
|
|
General and administrative expenses
|
|
|
(13,080
|
)
|
|
(10,506
|
)
|
|
|
(35,658
|
)
|
|
(33,750
|
)
|
|
|
Depreciation expense
|
|
|
(36,646
|
)
|
|
(36,129
|
)
|
|
|
(109,752
|
)
|
|
(91,235
|
)
|
|
|
|
|
|
|
|
|
(132,445
|
)
|
|
(142,825
|
)
|
|
|
(392,051
|
)
|
|
(369,549
|
)
|
|
|
Loss of hire insurance recovery
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
23,671
|
|
|
Operating income
|
|
|
60,795
|
|
|
29,161
|
|
|
|
152,977
|
|
|
100,282
|
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs on interest rate swap termination
|
|
|
-
|
|
|
-
|
|
|
|
(38,184
|
)
|
|
-
|
|
|
|
Interest expense, other
|
|
|
(23,797
|
)
|
|
(26,992
|
)
|
|
|
(68,257
|
)
|
|
(71,938
|
)
|
|
|
Total interest expense
|
|
|
(23,797
|
)
|
|
(26,992
|
)
|
|
|
(106,441
|
)
|
|
(71,938
|
)
|
|
|
Costs on extinguishment of debt
|
|
|
-
|
|
|
-
|
|
|
|
(28,428
|
)
|
|
-
|
|
|
|
Other income (expense)
|
|
|
(842
|
)
|
|
35
|
|
|
|
(946
|
)
|
|
3,859
|
|
|
Income before income taxes
|
|
|
36,156
|
|
|
2,204
|
|
|
|
17,162
|
|
|
32,203
|
|
|
|
Income tax expense
|
|
|
(5,829
|
)
|
|
(4,180
|
)
|
|
|
(17,350
|
)
|
|
(14,679
|
)
|
|
Net income (loss)
|
|
$
|
30,327
|
|
$
|
(1,976
|
)
|
|
$
|
(188
|
)
|
$
|
17,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share, basic
|
|
$
|
0.14
|
|
$
|
(0.01
|
)
|
|
$
|
-
|
|
$
|
0.08
|
|
|
Weighted average number of common shares, basic
|
|
|
216,968,926
|
|
|
216,902,000
|
|
|
|
216,943,661
|
|
|
216,900,665
|
|
|
Earnings (loss) per common share, diluted
|
|
$
|
0.14
|
|
$
|
(0.01
|
)
|
|
$
|
-
|
|
$
|
0.08
|
|
|
Weighted average number of common shares, diluted
|
|
|
217,157,152
|
|
|
216,902,000
|
|
|
|
216,943,661
|
|
|
216,902,566
|
|
|
|
|
|
|
|
|
|
|
PACIFIC DRILLING S.A. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets
|
|
(in thousands, except par value and share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
|
|
2013
|
|
|
2012
|
|
Assets:
|
|
|
|
(unaudited)
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
133,888
|
|
|
$
|
605,921
|
|
|
|
Restricted cash
|
|
|
-
|
|
|
|
47,444
|
|
|
|
Accounts receivable
|
|
|
131,252
|
|
|
|
152,299
|
|
|
|
Materials and supplies
|
|
|
59,381
|
|
|
|
49,626
|
|
|
|
Deferred financing costs
|
|
|
14,743
|
|
|
|
17,707
|
|
|
|
Current portion of deferred mobilization costs
|
|
|
41,197
|
|
|
|
37,519
|
|
|
|
Prepaid expenses and other current assets
|
|
|
15,170
|
|
|
|
13,930
|
|
|
|
Total current assets
|
|
|
395,631
|
|
|
|
924,446
|
|
|
|
Property and equipment, net
|
|
|
4,440,992
|
|
|
|
3,760,421
|
|
|
|
Restricted cash
|
|
|
-
|
|
|
|
124,740
|
|
|
|
Deferred financing costs
|
|
|
57,066
|
|
|
|
32,157
|
|
|
|
Other assets
|
|
|
|
37,707
|
|
|
|
52,164
|
|
|
|
Total assets
|
|
$
|
4,931,396
|
|
|
$
|
4,893,928
|
|
|
Liabilities and shareholders' equity:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
36,505
|
|
|
$
|
30,230
|
|
|
|
Accrued expenses
|
|
|
58,957
|
|
|
|
39,345
|
|
|
|
Current portion of long-term debt
|
|
|
7,500
|
|
|
|
218,750
|
|
|
|
Accrued interest
|
|
|
32,234
|
|
|
|
29,594
|
|
|
|
Derivative liabilities, current
|
|
|
3,620
|
|
|
|
17,995
|
|
|
|
Current portion of deferred revenue
|
|
|
70,898
|
|
|
|
66,142
|
|
|
|
Total current liabilities
|
|
|
209,714
|
|
|
|
402,056
|
|
|
|
Long-term debt, net of current maturities
|
|
|
2,285,905
|
|
|
|
2,034,958
|
|
|
|
Deferred revenue
|
|
|
67,209
|
|
|
|
97,014
|
|
|
|
Other long-term liabilities
|
|
|
488
|
|
|
|
44,652
|
|
|
|
Total long-term liabilities
|
|
|
2,353,602
|
|
|
|
2,176,624
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
Shareholders' equity:
|
|
|
|
|
|
|
|
|
Common shares, $0.01 par value, 5,000,000,000 shares
|
|
|
|
|
|
|
|
|
authorized, 224,100,000 shares issued and 217,002,361
|
|
|
|
|
|
|
|
|
and 216,902,000 shares outstanding as of September 30,
|
|
|
|
|
|
|
|
|
2013 and December 31, 2012, respectively
|
|
|
2,170
|
|
|
|
2,169
|
|
|
|
Additional paid-in capital
|
|
|
2,356,507
|
|
|
|
2,349,544
|
|
|
|
Accumulated other comprehensive loss
|
|
|
(12,360
|
)
|
|
|
(58,416
|
)
|
|
|
Retained earnings
|
|
|
21,763
|
|
|
|
21,951
|
|
|
|
Total shareholders' equity
|
|
|
2,368,080
|
|
|
|
2,315,248
|
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
4,931,396
|
|
|
$
|
4,893,928
|
|
|
|
|
PACIFIC DRILLING S.A. AND SUBSIDIARIES
|
|
|
|
Condensed Consolidated Statements of Cash Flows
|
|
(in thousands) (unaudited)
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2013
|
|
|
2012
|
|
Cash flow from operating activities:
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(188
|
)
|
|
$
|
17,524
|
|
|
Adjustments to reconcile net income (loss) to net cash
|
|
|
|
|
|
|
|
provided by operating activities:
|
|
|
|
|
|
|
|
Depreciation expense
|
|
|
109,752
|
|
|
|
91,235
|
|
|
Amortization of deferred revenue
|
|
|
(52,336
|
)
|
|
|
(69,219
|
)
|
|
Amortization of deferred mobilization costs
|
|
|
29,147
|
|
|
|
52,033
|
|
|
Amortization of deferred financing costs
|
|
|
8,319
|
|
|
|
10,236
|
|
|
Amortization of debt discount
|
|
|
252
|
|
|
|
-
|
|
|
Write-off of unamortized deferred financing costs
|
|
|
27,644
|
|
|
|
-
|
|
|
Costs on interest rate swap termination
|
|
|
38,184
|
|
|
|
-
|
|
|
Deferred income taxes
|
|
|
(2,505
|
)
|
|
|
2,451
|
|
|
Share-based compensation expense
|
|
|
6,964
|
|
|
|
3,880
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
21,047
|
|
|
|
(72,128
|
)
|
|
Materials and supplies
|
|
|
(9,755
|
)
|
|
|
(5,687
|
)
|
|
Prepaid expenses and other assets
|
|
|
(11,892
|
)
|
|
|
(77,956
|
)
|
|
Accounts payable and accrued expenses
|
|
|
1,664
|
|
|
|
28,221
|
|
|
Deferred revenue
|
|
|
27,287
|
|
|
|
152,260
|
|
|
Net cash provided by operating activities
|
|
|
193,584
|
|
|
|
132,850
|
|
|
Cash flow from investing activities:
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(772,249
|
)
|
|
|
(344,128
|
)
|
|
Decrease in restricted cash
|
|
|
172,184
|
|
|
|
73,890
|
|
|
Net cash used in investing activities
|
|
|
(600,065
|
)
|
|
|
(270,238
|
)
|
|
Cash flow from financing activities:
|
|
|
|
|
|
|
|
Proceeds from long-term debt
|
|
|
1,497,250
|
|
|
|
300,000
|
|
|
Payments on long-term debt
|
|
|
(1,458,125
|
)
|
|
|
(109,375
|
)
|
|
Payment for costs on interest rate swap termination
|
|
|
(41,993
|
)
|
|
|
-
|
|
|
Deferred financing costs
|
|
|
(62,684
|
)
|
|
|
(7,003
|
)
|
|
Net cash provided by (used in) financing activities
|
|
|
(65,552
|
)
|
|
|
183,622
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
(472,033
|
)
|
|
|
46,234
|
|
|
Cash and cash equivalents, beginning of period
|
|
|
605,921
|
|
|
|
107,278
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
133,888
|
|
|
$
|
153,512
|
|
|
|
|
|
|
|
|
|
|
|
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 third quarter 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 September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
30,327
|
|
$
|
(1,976
|
)
|
|
$
|
(188
|
)
|
|
$
|
17,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add (subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs on interest rate swap termination
|
|
|
-
|
|
|
-
|
|
|
|
38,184
|
|
|
|
-
|
|
|
Interest expense, other
|
|
|
23,797
|
|
|
26,992
|
|
|
|
68,257
|
|
|
|
71,938
|
|
|
Interest expense
|
|
|
23,797
|
|
|
26,992
|
|
|
|
106,441
|
|
|
|
71,938
|
|
|
Depreciation expense
|
|
|
36,646
|
|
|
36,129
|
|
|
|
109,752
|
|
|
|
91,235
|
|
|
Income taxes
|
|
|
5,829
|
|
|
4,180
|
|
|
|
17,350
|
|
|
|
14,679
|
|
|
EBITDA
|
|
|
96,599
|
|
|
65,325
|
|
|
|
233,355
|
|
|
|
195,376
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add (subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs on extinguishment of debt
|
|
|
-
|
|
|
-
|
|
|
|
28,428
|
|
|
|
-
|
|
|
Loss of hire insurance recovery
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
(23,671
|
)
|
|
Adjusted EBITDA
|
|
|
96,599
|
|
|
65,325
|
|
|
|
261,783
|
|
|
|
171,705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2013
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
30,327
|
|
$
|
(1,976
|
)
|
|
$
|
(188
|
)
|
|
$
|
17,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add (subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss of hire insurance recovery
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
(23,671
|
)
|
|
Costs on interest rate swap termination
|
|
|
-
|
|
|
-
|
|
|
|
38,184
|
|
|
|
-
|
|
|
Costs on extinguishment of debt
|
|
|
-
|
|
|
-
|
|
|
|
28,428
|
|
|
|
-
|
|
|
Net income (loss) excluding charges
|
|
|
30,327
|
|
|
(1,976
|
)
|
|
|
66,424
|
|
|
|
(6,147
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share, basic and diluted
|
|
$
|
0.14
|
|
$
|
(0.01
|
)
|
|
$
|
-
|
|
|
$
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add (subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss of hire insurance recovery
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.11
|
)
|
|
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
|
|
|
0.14
|
|
|
(0.01
|
)
|
|
|
0.31
|
|
|
|
(0.03
|
)
|
Source: Pacific Drilling