Conference call set 9 a.m. Central time Thursday, Aug. 7
-
EBITDA(a) for the second quarter of $137.9 million, a 61
percent increase over the prior year’s second-quarter adjusted EBITDA(a)
and representing an EBITDA margin(b) of 52.9 percent
-
Revenue efficiency(c) of 97.1 percent for the second
quarter yielded revenue of $260.8 million, a 48 percent increase over
the prior year’s second-quarter revenue
-
Cash flow from operations for the six months ended June 30, 2014,
reached $223.4 million, a 110 percent increase over the prior year’s
cash flow from operations for the comparable period
LUXEMBOURG--(BUSINESS WIRE)--
Pacific Drilling S.A. (NYSE:PACD) today announced revenue of $260.8
million for the three months ended June 30, 2014, as compared to revenue
of $225.6 million for first-quarter 2014 and $176.8 million for
second-quarter 2013.
Net income for second-quarter 2014 was $49.9 million or $0.23 per
diluted share, compared to net income of $22.2 million or $0.10 per
diluted share for first-quarter 2014. Net income excluding charges(d)
related to our debt refinancing for second-quarter 2013 was $21.0
million or $0.10 per diluted share.
CEO Chris Beckett said, "Despite the challenging market conditions, this
quarter was the best in our company’s history. We continue to deliver
exceptional financial results driven by our outstanding operational
performance and ongoing fleet growth.”
“Pacific Drilling’s third quarter is off to a good start, as well,”
Beckett added. “In July, our fleet achieved average revenue efficiency
in excess of 96 percent. We agreed terms for Pacific Bora’s
two-year extension, and expect the new rate to go into effect Aug. 26.
The Pacific Sharav is currently mobilizing, and we expect it to
be ready for Gulf of Mexico operations by the end of this month.
Negotiations for the extension of Pacific Mistral are ongoing,
and we are progressing on a direct negotiation for Pacific Meltem.”
Second-Quarter 2014 Operational and Financial
Commentary
Contract drilling revenue for second-quarter 2014 was $260.8 million,
which included $28.0 million of deferred revenue amortization, compared
to contract drilling revenue of $225.6 million for first-quarter 2014,
which also included $28.0 million of deferred revenue amortization.
During the three months ended June 30, 2014, our operating fleet of five
drillships achieved average revenue efficiency of 97.1
percent, the company’s highest average quarterly revenue efficiency to
date. The increase in revenue efficiency resulted primarily from strong
operational uptime driven by low incidence of equipment breakdowns. In
addition, during the quarter we experienced relatively few periods of
reduced dayrate due to standby or moving time and limited reduced
dayrate related to performance or equipment issues.
Contract drilling expenses for second-quarter 2014 were $108.0 million,
compared to $111.0 million for first-quarter 2014. Contract drilling
expenses for second-quarter 2014 included $13.5 million in amortization
of deferred costs, $4.4 million in reimbursable expenses, and $9.1
million in shore-based and other support costs. Shore-based and support
costs increased by approximately $0.7 million compared to first-quarter
2014 as shore-based staff was expanded to support our growing operating
fleet. Direct rig-related daily operating expenses, excluding
reimbursable costs, averaged $177,800 in second-quarter 2014, compared
to $183,800 for first-quarter 2014. The quarter benefited from a shift
in the timing of certain maintenance activities.
General and administrative expenses for second-quarter 2014 were $13.8
million, compared to $12.5 million for first-quarter 2014. The increase
in general and administrative expenses was primarily the result of
planned hiring and annual compensation increases.
EBITDA for second-quarter 2014 was $137.9 million, compared to EBITDA of
$100.9 million during the prior quarter. A reconciliation of EBITDA to
net income is included in the accompanying schedules to this release.
EBITDA margin for the quarter was 52.9 percent.
Interest expense for the second quarter was $28.6 million, compared to
$26.0 million for the prior quarter.
Liquidity and Capital Expenditures
During the second-quarter, cash flow from operations was $100.6 million.
Our cash balances were $149.6 million as of June 30, 2014, and our total
outstanding debt was $2.8 billion. Following the increase of our
revolving credit facility maximum cash sublimit from $200 million to
$300 million, we have $800 million of undrawn capacity under our
existing credit facilities.
During second-quarter 2014, our capital expenditures were $545.1
million, of which $504.3 million related to construction of our newbuild
drillships, including payment for delivery of Pacific Sharav from
the shipyard. Capitalized interest amounted to $18.1 million. The
remaining expenditures primarily related to fleet spares and
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 two newbuild
drillships and develop spare blowout preventer, riser and thruster
capacity to be approximately $940 million, excluding capitalized
interest and client-reimbursed asset upgrades. We expect to cover these
capital expenditures with a combination of our existing cash balances,
future operating cash flows, undrawn capacity on our existing credit
facilities and additional financing, which is uncommitted at this time.
Updates to 2014 Guidance
We reiterate our guidance on revenue efficiency provided with our fleet
status report posted today, Aug. 6, 2014. The average revenue efficiency
ranges of 91-95 percent for third-quarter 2014 and 90-93 percent for
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 first-quarter 2014. The guidance is also
reflective of required inspections across the fleet and the initial
stages of the shakedown process for the Pacific Khamsin and
Pacific Sharav, during which we expect their revenue efficiency to
lag current levels of our first four operating rigs.
We reiterate our other guidance provided with our full-year 2013 results.
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
available in the “Quarterly and Annual Results” 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 the statement
indicating why management believes the non-GAAP measure provides useful
information for investors.
(b) 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.
(c) 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.
(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 9 a.m. U.S. Central
time on Thursday, Aug. 7, to discuss second-quarter 2014 results. To
participate in the Aug. 7 call, please dial +1 785-830-1926 or
1-800-533-9703 and refer to confirmation code 3623093 five to 10 minutes
prior to the scheduled start time. The call also will be webcast on www.pacificdrilling.com
and can be accessed by a link posted in the “Events & Presentations”
subsection of the “Investor Relations” section.
An audio replay of the call can be accessed after noon Central time on
Thursday, Aug. 7, 2014, by dialing +1 719-457-0820 or 1-888-203-1112,
and using access code 3623093. A replay of the call also will 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,
has one drillship mobilizing to begin its drilling operations under
client contract, and has two drillships under construction at Samsung
Heavy Industries. 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,” “tends to,”
“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 client contract opportunities;
future operational performance; revenue efficiency levels; estimated
duration of client contracts; contract dayrate amounts; future contract
commencement dates and locations; backlog; market outlook; construction,
timing and delivery of newbuild drillships; capital expenditures; cost
adjustments; estimated rig availability; 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; shore based
support costs; general and administrative expenses; income tax expense;
expected amortization of deferred revenue; expected amortization of
deferred mobilization expenses; growth opportunities 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 (many 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: our ability to secure and
maintain drilling contracts, including possible cancellation or
suspension of drilling contracts as a result of mechanical difficulties,
performance, pending regulatory or other approvals or other reasons;
actual contract commencement dates; changes in worldwide rig supply and
demand, competition and technology; future levels of offshore drilling
activity; downtime and other risks associated with offshore rig
operations, including unscheduled repairs or maintenance; relocations,
severe weather or hurricanes; governmental action, civil unrest and
political and economic uncertainties; future levels of offshore drilling
activity; impact of potential licensing or patent litigation; 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; 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) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2014
|
|
|
March 31,
2014
|
|
|
June 30,
2013
|
|
|
|
|
2014
|
|
|
2013
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
|
|
|
|
$
|
260,829
|
|
|
$
|
225,591
|
|
|
$
|
176,772
|
|
|
|
|
$
|
486,420
|
|
|
$
|
351,788
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
|
|
|
|
|
(107,964)
|
|
|
|
(110,966)
|
|
|
|
(79,470)
|
|
|
|
|
|
(218,930)
|
|
|
|
(163,922)
|
|
|
|
|
General and administrative expenses
|
|
|
|
|
(13,773)
|
|
|
|
(12,533)
|
|
|
|
(11,550)
|
|
|
|
|
|
(26,306)
|
|
|
|
(22,578)
|
|
|
|
|
Depreciation expense
|
|
|
|
|
(46,449)
|
|
|
|
(46,154)
|
|
|
|
(36,603)
|
|
|
|
|
|
(92,603)
|
|
|
|
(73,106)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(168,186)
|
|
|
|
(169,653)
|
|
|
|
(127,623)
|
|
|
|
|
|
(337,839)
|
|
|
|
(259,606)
|
|
|
|
Operating income
|
|
|
|
|
92,643
|
|
|
|
55,938
|
|
|
|
49,149
|
|
|
|
|
|
148,581
|
|
|
|
92,182
|
|
|
|
Other expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs on interest rate swap termination
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(38,184)
|
|
|
|
—
|
|
|
|
(38,184)
|
|
|
|
|
Interest expense
|
|
|
|
|
(28,599)
|
|
|
|
(26,031)
|
|
|
|
(21,700)
|
|
|
|
|
|
(54,630)
|
|
|
|
(44,460)
|
|
|
|
|
|
Total interest expense
|
|
|
|
|
(28,599)
|
|
|
|
(26,031)
|
|
|
|
(59,884)
|
|
|
|
|
|
(54,630)
|
|
|
|
(82,644)
|
|
|
|
|
Costs on extinguishment of debt
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(28,428)
|
|
|
|
|
|
—
|
|
|
|
(28,428)
|
|
|
|
|
Other expense
|
|
|
|
|
(1,231)
|
|
|
|
(1,169)
|
|
|
|
(296)
|
|
|
|
|
|
(2,400)
|
|
|
|
(104)
|
|
|
|
Income (loss) before income taxes
|
|
|
|
|
62,813
|
|
|
|
28,738
|
|
|
|
(39,459)
|
|
|
|
|
|
91,551
|
|
|
|
(18,994)
|
|
|
|
|
Income tax expense
|
|
|
|
|
(12,931)
|
|
|
|
(6,508)
|
|
|
|
(6,118)
|
|
|
|
|
|
(19,439)
|
|
|
|
(11,521)
|
|
|
|
Net income (loss)
|
|
|
|
$
|
49,882
|
|
|
$
|
22,230
|
|
|
$
|
(45,577)
|
|
|
|
|
$
|
72,112
|
|
|
$
|
(30,515)
|
|
|
|
Earnings (loss) per common share, basic
|
|
|
|
$
|
0.23
|
|
|
$
|
0.10
|
|
|
$
|
(0.21)
|
|
|
|
|
$
|
0.33
|
|
|
$
|
(0.14)
|
|
|
|
Weighted average number of common shares, basic
|
|
|
217,293
|
|
|
|
217,121
|
|
|
|
216,959
|
|
|
|
|
|
217,208
|
|
|
|
216,931
|
|
|
|
Earnings (loss) per common share, diluted
|
|
|
|
$
|
0.23
|
|
|
$
|
0.10
|
|
|
$
|
(0.21)
|
|
|
|
|
$
|
0.33
|
|
|
$
|
(0.14)
|
|
|
|
Weighted average number of common shares, diluted
|
|
|
219,523
|
|
|
|
217,464
|
|
|
|
216,959
|
|
|
|
|
|
219,377
|
|
|
|
216,931
|
|
|
PACIFIC DRILLING S.A. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets
|
|
(in thousands, except par value) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2014
|
|
|
2013
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
149,617
|
|
$
|
236,504
|
|
$
|
204,123
|
|
|
Accounts receivable
|
|
|
157,863
|
|
|
176,393
|
|
|
206,078
|
|
|
Materials and supplies
|
|
|
82,472
|
|
|
74,045
|
|
|
65,709
|
|
|
Deferred financing costs, current
|
|
|
14,356
|
|
|
14,830
|
|
|
14,857
|
|
|
Deferred costs, current
|
|
|
36,594
|
|
|
43,099
|
|
|
48,202
|
|
|
Prepaid expenses and other current assets
|
|
|
26,528
|
|
|
27,111
|
|
|
13,889
|
|
|
|
Total current assets
|
|
|
467,430
|
|
|
571,982
|
|
|
552,858
|
|
|
Property and equipment, net
|
|
|
5,048,463
|
|
|
4,582,853
|
|
|
4,512,154
|
|
|
Deferred financing costs
|
|
|
46,913
|
|
|
50,161
|
|
|
53,300
|
|
|
Other assets
|
|
|
|
39,213
|
|
|
39,632
|
|
|
45,728
|
|
|
|
Total assets
|
|
$
|
5,602,019
|
|
$
|
5,244,628
|
|
$
|
5,164,040
|
|
Liabilities and shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
46,887
|
|
$
|
71,898
|
|
$
|
54,235
|
|
|
Accrued expenses
|
|
|
68,672
|
|
|
63,134
|
|
|
66,026
|
|
|
Long-term debt, current
|
|
|
349,167
|
|
|
307,500
|
|
|
7,500
|
|
|
Accrued interest
|
|
|
22,029
|
|
|
34,718
|
|
|
21,984
|
|
|
Derivative liabilities, current
|
|
|
9,473
|
|
|
6,781
|
|
|
4,984
|
|
|
Deferred revenue, current
|
|
|
86,499
|
|
|
94,566
|
|
|
96,658
|
|
|
|
Total current liabilities
|
|
|
582,727
|
|
|
578,597
|
|
|
251,387
|
|
|
Long-term debt, net of current maturities
|
|
|
2,438,532
|
|
|
2,121,766
|
|
|
2,423,337
|
|
|
Deferred revenue
|
|
|
113,359
|
|
|
125,023
|
|
|
88,465
|
|
|
Other long-term liabilities
|
|
|
4,196
|
|
|
950
|
|
|
927
|
|
|
|
Total long-term liabilities
|
|
|
2,556,087
|
|
|
2,247,739
|
|
|
2,512,729
|
|
Shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Common shares, $0.01 par value per share, 5,000,000 shares
|
|
|
|
|
|
|
|
|
|
|
|
authorized, 232,770 and 224,100 shares issued and
|
|
|
|
|
|
|
|
|
|
|
|
217,321 and 217,035 shares outstanding as of June 30,
|
|
|
|
|
|
|
|
|
|
|
|
2014 and December 31, 2013, respectively
|
|
|
2,173
|
|
|
2,171
|
|
|
2,170
|
|
|
Additional paid-in capital
|
|
|
2,363,758
|
|
|
2,361,573
|
|
|
2,358,858
|
|
|
Accumulated other comprehensive loss
|
|
|
(22,291)
|
|
|
(15,135)
|
|
|
(8,557)
|
|
|
Retained earnings
|
|
|
119,565
|
|
|
69,683
|
|
|
47,453
|
|
|
|
Total shareholders' equity
|
|
|
2,463,205
|
|
|
2,418,292
|
|
|
2,399,924
|
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
5,602,019
|
|
$
|
5,244,628
|
|
$
|
5,164,040
|
|
PACIFIC DRILLING S.A. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Cash Flows
|
|
(in thousands) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
June 30,
2014
|
|
|
March 31,
2014
|
|
|
June 30,
2013
|
|
|
June 30,
2014
|
|
June 30,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
49,882
|
|
|
$
|
22,230
|
|
|
$
|
(45,577)
|
|
|
$
|
72,112
|
|
$
|
(30,515)
|
|
|
Adjustments to reconcile net income to net cash
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation expense
|
|
|
46,449
|
|
|
|
46,154
|
|
|
|
36,603
|
|
|
|
92,603
|
|
|
73,106
|
|
|
Amortization of deferred revenue
|
|
|
(28,038)
|
|
|
|
(28,008)
|
|
|
|
(17,322)
|
|
|
|
(56,046)
|
|
|
(34,173)
|
|
|
Amortization of deferred costs
|
|
|
13,547
|
|
|
|
13,210
|
|
|
|
9,708
|
|
|
|
26,757
|
|
|
19,307
|
|
|
Amortization of deferred financing costs
|
|
|
2,343
|
|
|
|
2,578
|
|
|
|
2,974
|
|
|
|
4,921
|
|
|
6,661
|
|
|
Amortization of debt discount
|
|
|
182
|
|
|
|
173
|
|
|
|
59
|
|
|
|
355
|
|
|
59
|
|
|
Write-off of unamortized deferred financing costs
|
|
|
—
|
|
|
|
—
|
|
|
|
27,644
|
|
|
|
—
|
|
|
27,644
|
|
|
Costs on interest rate swap termination
|
|
|
—
|
|
|
|
—
|
|
|
|
38,184
|
|
|
|
—
|
|
|
38,184
|
|
|
Deferred income taxes
|
|
|
3,440
|
|
|
|
(12)
|
|
|
|
(702)
|
|
|
|
3,428
|
|
|
(1,379)
|
|
|
Share-based compensation expense
|
|
|
2,690
|
|
|
|
1,966
|
|
|
|
2,440
|
|
|
|
4,656
|
|
|
4,493
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
18,530
|
|
|
|
29,685
|
|
|
|
(22,728)
|
|
|
|
48,215
|
|
|
11,963
|
|
|
|
Materials and supplies
|
|
|
(8,427)
|
|
|
|
(8,336)
|
|
|
|
(640)
|
|
|
|
(16,763)
|
|
|
(2,048)
|
|
|
|
Prepaid expenses and other assets
|
|
|
(4,818)
|
|
|
|
(14,600)
|
|
|
|
(3,988)
|
|
|
|
(19,418)
|
|
|
(7,392)
|
|
|
|
Accounts payable and accrued expenses
|
|
|
(3,538)
|
|
|
|
(4,682)
|
|
|
|
2,811
|
|
|
|
(8,220)
|
|
|
(14,485)
|
|
|
|
Deferred revenue
|
|
|
8,307
|
|
|
|
62,474
|
|
|
|
4,708
|
|
|
|
70,781
|
|
|
14,896
|
|
|
|
|
Net cash provided by operating activities
|
|
|
100,549
|
|
|
|
122,832
|
|
|
|
34,174
|
|
|
|
223,381
|
|
|
106,321
|
|
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(545,058)
|
|
|
|
(88,826)
|
|
|
|
(82,574)
|
|
|
|
(633,884)
|
|
|
(217,533)
|
|
|
Decrease in restricted cash
|
|
|
—
|
|
|
|
—
|
|
|
|
172,191
|
|
|
|
—
|
|
|
172,184
|
|
|
|
|
Net cash provided by (used in) investing activities
|
|
|
(545,058)
|
|
|
|
(88,826)
|
|
|
|
89,617
|
|
|
|
(633,884)
|
|
|
(45,349)
|
|
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares issued under share-based compensation plan
|
(503)
|
|
|
|
750
|
|
|
|
—
|
|
|
|
247
|
|
|
—
|
|
|
Proceeds from long-term debt
|
|
|
360,000
|
|
|
|
—
|
|
|
|
1,496,250
|
|
|
|
360,000
|
|
|
1,497,250
|
|
|
Payments on long-term debt
|
|
|
(1,875)
|
|
|
|
(1,875)
|
|
|
|
(1,401,563)
|
|
|
|
(3,750)
|
|
|
(1,456,250)
|
|
|
Payment for costs on interest rate swap termination
|
|
|
—
|
|
|
|
—
|
|
|
|
(41,993)
|
|
|
|
—
|
|
|
(41,993)
|
|
|
Payments for financing costs
|
|
|
—
|
|
|
|
(500)
|
|
|
|
(40,960)
|
|
|
|
(500)
|
|
|
(62,684)
|
|
|
|
|
Net cash provided by (used in) financing activities
|
|
|
357,622
|
|
|
|
(1,625)
|
|
|
|
11,734
|
|
|
|
355,997
|
|
|
(63,677)
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
(86,887)
|
|
|
|
32,381
|
|
|
|
135,525
|
|
|
|
(54,506)
|
|
|
(2,705)
|
|
Cash and cash equivalents, beginning of period
|
|
|
236,504
|
|
|
|
204,123
|
|
|
|
467,691
|
|
|
|
204,123
|
|
|
605,921
|
|
Cash and cash equivalents, end of period
|
|
$
|
149,617
|
|
|
$
|
236,504
|
|
|
$
|
603,216
|
|
|
$
|
149,617
|
|
$
|
603,216
|
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, 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 second quarter of 2014.
|
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
|
|
|
|
|
|
|
|
|
|
|
June 30,
2014
|
|
|
March 31,
2014
|
|
|
June 30,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
49,882
|
|
$
|
22,230
|
|
$
|
(45,577)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add (subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs on interest rate swap termination
|
|
|
—
|
|
|
|
—
|
|
|
|
38,184
|
|
|
Interest expense
|
|
|
28,599
|
|
|
26,031
|
|
|
21,700
|
|
|
Depreciation expense
|
|
|
46,449
|
|
|
46,154
|
|
|
36,603
|
|
|
Income tax expense
|
|
|
12,931
|
|
|
6,508
|
|
|
6,118
|
|
EBITDA
|
|
|
|
|
|
137,861
|
|
|
100,923
|
|
|
57,028
|
|
Add (subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs on extinguishment of debt
|
|
|
—
|
|
|
—
|
|
|
28,428
|
|
Adjusted EBITDA
|
|
|
137,861
|
|
|
100,923
|
|
|
85,456
|
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 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 Excluding
Charges
and Earnings per Share Excluding Charges
|
|
(in thousands, except per share information) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2014
|
|
|
March 31,
2014
|
|
|
June 30,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
49,882
|
|
$
|
22,230
|
|
$
|
(45,577)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add (subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs on interest rate swap termination
|
|
|
|
—
|
|
|
—
|
|
|
38,184
|
|
|
Costs on extinguishment of debt
|
|
|
|
—
|
|
|
—
|
|
|
28,428
|
|
Net income excluding charges
|
|
|
|
49,882
|
|
|
22,230
|
|
|
21,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share, basic and diluted
|
|
|
$
|
0.23
|
|
$
|
0.10
|
|
$
|
(0.21)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add (subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs on interest rate swap termination
|
|
|
|
—
|
|
|
—
|
|
|
0.18
|
|
|
Costs on extinguishment of debt
|
|
|
|
—
|
|
|
—
|
|
|
0.13
|
|
Earnings excluding charges per common share, basic and diluted
|
|
|
0.23
|
|
|
0.10
|
|
|
0.10
|
Source: Pacific Drilling