Conference call set 9 a.m. Central time Wednesday, Nov. 5
-
EBITDA(a) for the third quarter of $145.5 million, a 51
percent increase over the prior year’s third-quarter EBITDA and
representing an EBITDA margin(b) of 52.0 percent
-
Revenue efficiency(c) of 94.4 percent for the third quarter
yielded revenue of $279.6 million, a 45 percent increase over the
prior year’s third-quarter revenue
-
Third consecutive quarter of cash flow from operations in excess of
$100 million, totaling $323.9 million for the nine months ended Sept.
30, 2014
-
Pacific Sharav commenced five-year contract on Aug. 27
-
Pacific Bora contract extended until August 2016, effective
Aug. 26
-
Closed new revolving credit facility of up to $500 million on Oct. 29
-
Board of Directors to recommend approval of share repurchase program
to shareholders at Extraordinary General Meeting on Nov. 24
LUXEMBOURG--(BUSINESS WIRE)--
Pacific Drilling S.A. (NYSE: PACD) today announced net income for
third-quarter 2014 of $48.1 million or $0.22 per diluted share, compared
to net income of $49.9 million or $0.23 per diluted share for
second-quarter 2014. Net income for third-quarter 2013 was $30.3 million
or $0.14 per diluted share.
CEO Chris Beckett said, "Despite challenging market conditions, Pacific
Drilling continues to execute on our plan to expand our operations and
deliver exceptional performance. We delivered a third consecutive
quarter of strong cash-flow generation and a new record-high quarterly
EBITDA. With the start-up of Pacific Sharav in August, we again
demonstrated our ability to introduce new rigs efficiently, with our
strongest shakedown performance to date. The company’s financial
performance also benefited from higher dayrates, driven by start-up of Pacific
Sharav and extension of Pacific Bora bringing our average
contractual dayrate in the fourth quarter to more than $540,000 per day.
This financial performance lays the groundwork to initiate a share
repurchase program before the end of this year.”
Third-Quarter 2014 Operational and Financial
Commentary
Contract drilling revenue for third-quarter 2014 was $279.6 million,
which included $27.3 million of deferred revenue amortization, compared
to contract drilling revenue of $260.8 million for second-quarter 2014,
which included $28.0 million of deferred revenue amortization. During
the three months ended Sept. 30, 2014, our operating fleet of six
drillships achieved average revenue efficiency of 94.4 percent. Revenue
efficiency resulted from strong operational uptime on our five mature
rigs, partially offset by the impact of shakedown on Pacific Sharav.
Contract drilling expenses for third-quarter 2014 were $116.9 million,
compared to $108.0 million for second-quarter 2014. Contract drilling
expenses for third-quarter 2014 included $12.9 million in amortization
of deferred costs, $8.4 million in reimbursable expenses, and $8.9
million in shore-based and other support costs. Direct rig-related daily
operating expenses, excluding reimbursable costs, averaged $175,500 in
third-quarter 2014, compared to $177,800 for second-quarter 2014,
demonstrating our ongoing focus on cost management.
General and administrative expenses for third-quarter 2014 were $16.5
million, compared to $13.8 million for second-quarter 2014. The increase
in general and administrative expenses was primarily the result of non
recurring costs related to the relocation of our Houston office to
support the growth of our operating fleet.
EBITDA for third-quarter 2014 was $145.5 million, compared to EBITDA of
$137.9 million during the prior quarter. A reconciliation of net income
to EBITDA is included in the accompanying schedules to this release.
EBITDA margin for the quarter was 52.0 percent.
Interest expense for the third quarter was $35.6 million, compared to
$28.6 million for the prior quarter.
Liquidity and Capital Expenditures
During the third quarter, cash flow from operations was $100.5 million.
Cash balances totaled $132.4 million as of Sept. 30, 2014, and total
outstanding debt was $2.8 billion. Following the closing of the new
revolving credit facility on Oct. 29, we have more than $1.4 billion of
available liquidity, including up to $1.3 billion of undrawn capacity
under existing credit facilities. Our solid liquidity position consists
of current cash on hand, approximately $400 million available and
undrawn capacity on the senior secured credit facility (SSCF), $300
million available and undrawn capacity on the 2013 revolving credit
facility, and $350 million available and undrawn capacity on the new
revolving credit facility. Additionally, we will have access to
approximately $100 million available on the SSCF and $150 million
available on the new revolving credit facility upon entry into
satisfactory drilling contracts for the Pacific Meltem and Pacific
Zonda, respectively.
CFO Paul Reese commented, “The new revolving credit facility illustrates
our continued ability to improve the terms of our financing and reduces
the average interest rate on our debt to less than 5.5 percent once our
facilities are fully drawn.”
During third-quarter 2014, capital expenditures were $115.8 million, of
which $78.0 million related to construction of newbuild drillships.
Capitalized interest amounted to $13.6 million. The remaining
expenditures primarily related to fleet spares and contractually
required upgrades on 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 $859.6 million, excluding capitalized
interest and client-reimbursed asset upgrades. We expect to cover these
capital expenditures with a combination of existing cash balances,
future operating cash flows, and undrawn capacity on existing credit
facilities.
Updates to 2014 Guidance
We reiterate our guidance on revenue efficiency provided with the fleet
status report posted today, Nov. 4, 2014. The average revenue efficiency
ranges of 91-95 percent for fourth-quarter 2014 and 91-93 percent for
full-year 2014 include our expectations for unplanned downtime as well
as planned events. The guidance is also reflective of required
inspections across the fleet and the shakedown process for the Pacific
Sharav, during which we expect its revenue efficiency to lag current
levels of our first five operating rigs.
We are revising downward full-year 2014 guidance for direct rig-related
operating expenses and shore-based and other support costs as a result
of lower-than-expected operating expenses year to date. We maintain our
prior annual guidance for general and administrative expenses and note
that third-quarter 2014 general and administrative expenses were
impacted by non-recurring costs. We are also narrowing the guidance
range for income tax expense as a result of the geographical mix of our
revenues year to date. 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
|
|
|
$179,000 - $184,000
|
|
Minimum Average Reimbursable Expenses, Per Rig Per Day*
|
|
|
$10,000
|
|
Shore-Based & Other Support Costs Per Rig Day
|
|
|
$17,500 - $19,500
|
|
General & Administrative Expenses
|
|
|
$57 million - $59 million
|
|
Income Tax Expense as Percent of Total Contract
Drilling Revenue
|
|
|
3.5% - 4%
|
* These reimbursable costs 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
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 is a non-GAAP measure. Please refer to the
reconciliation, included later in this press release, of net income to
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. 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.
Conference Call
Pacific Drilling will conduct a conference call at 9 a.m. U.S. Central
time on Wednesday, Nov. 5, to discuss third-quarter 2014 results. To
participate in the Nov. 5 call, please dial +1 785-830-7991 or
1-800-768-6563 and refer to confirmation code 1851786 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
Wednesday, Nov. 5, 2014, by dialing +1 719-457-0820 or 1-888-203-1112,
and using access code 1851786. 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 high-specification, ultra-deepwater drillships
will represent one of the youngest and most technologically advanced
fleets in the world. The company currently operates six drillships under
customer 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;
contract dayrate amounts; future operational performance; revenue
efficiency levels; market outlook; estimated duration of client
contracts; future contract commencement dates and locations; backlog;
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 and
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 new
and maintain existing drilling contracts, including possible
cancellation or suspension of drilling contracts as a result of
mechanical difficulties, performance, market changes or other reasons;
changes in worldwide rig supply and demand, competition and technology;
future levels of offshore drilling activity; actual contract
commencement dates; 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
|
|
Nine Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2014
|
|
June 30,
2014
|
|
September 30,
2013
|
|
September 30,
2014
|
|
September 30,
2013
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
|
|
|
$
|
279,637
|
|
$
|
260,829
|
|
$
|
193,240
|
|
$
|
766,057
|
|
$
|
545,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
|
|
|
|
(116,850
|
)
|
|
(107,964
|
)
|
|
(82,719
|
)
|
|
(335,780
|
)
|
|
(246,641
|
)
|
|
|
General and administrative expenses
|
|
|
|
(16,467
|
)
|
|
(13,773
|
)
|
|
(13,080
|
)
|
|
(42,773
|
)
|
|
(35,658
|
)
|
|
|
Depreciation expense
|
|
|
|
(50,187
|
)
|
|
(46,449
|
)
|
|
(36,646
|
)
|
|
(142,790
|
)
|
|
(109,752
|
)
|
|
|
|
|
|
|
|
|
|
|
|
(183,504
|
)
|
|
(168,186
|
)
|
|
(132,445
|
)
|
|
(521,343
|
)
|
|
(392,051
|
)
|
|
Operating income
|
|
|
|
96,133
|
|
|
92,643
|
|
|
60,795
|
|
|
244,714
|
|
|
152,977
|
|
|
Other expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs on interest rate swap termination
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(38,184
|
)
|
|
|
Interest expense
|
|
|
|
(35,626
|
)
|
|
(28,599
|
)
|
|
(23,797
|
)
|
|
(90,256
|
)
|
|
(68,257
|
)
|
|
|
|
|
Total interest expense
|
|
|
|
(35,626
|
)
|
|
(28,599
|
)
|
|
(23,797
|
)
|
|
(90,256
|
)
|
|
(106,441
|
)
|
|
|
Costs on extinguishment of debt
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(28,428
|
)
|
|
|
Other expense
|
|
|
|
(870
|
)
|
|
(1,231
|
)
|
|
(842
|
)
|
|
(3,270
|
)
|
|
(946
|
)
|
|
Income before income taxes
|
|
|
|
59,637
|
|
|
62,813
|
|
|
36,156
|
|
|
151,188
|
|
|
17,162
|
|
|
|
Income tax expense
|
|
|
|
(11,536
|
)
|
|
(12,931
|
)
|
|
(5,829
|
)
|
|
(30,975
|
)
|
|
(17,350
|
)
|
|
Net income (loss)
|
|
|
$
|
48,101
|
|
$
|
49,882
|
|
$
|
30,327
|
|
$
|
120,213
|
|
$
|
(188
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share, basic
|
|
|
$
|
0.22
|
|
$
|
0.23
|
|
$
|
0.14
|
|
$
|
0.55
|
|
$
|
—
|
|
|
Weighted average number of common shares, basic
|
|
|
217,344
|
|
|
217,293
|
|
|
216,969
|
|
|
217,254
|
|
|
216,944
|
|
|
Earnings (loss) per common share, diluted
|
|
|
$
|
0.22
|
|
$
|
0.23
|
|
$
|
0.14
|
|
$
|
0.55
|
|
$
|
—
|
|
|
Weighted average number of common shares, diluted
|
|
|
217,547
|
|
|
219,523
|
|
|
217,157
|
|
|
217,455
|
|
|
216,944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PACIFIC DRILLING S.A. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets
|
|
(in thousands, except par value) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
June 30,
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
2014
|
|
|
2013
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
132,359
|
|
$
|
149,617
|
|
$
|
204,123
|
|
|
|
Accounts receivable
|
|
|
184,291
|
|
|
157,863
|
|
|
206,078
|
|
|
|
Materials and supplies
|
|
|
92,096
|
|
|
82,472
|
|
|
65,709
|
|
|
|
Deferred financing costs, current
|
|
|
13,872
|
|
|
14,356
|
|
|
14,857
|
|
|
|
Deferred costs, current
|
|
|
31,688
|
|
|
36,594
|
|
|
48,202
|
|
|
|
Prepaid expenses and other current assets
|
|
|
25,060
|
|
|
26,528
|
|
|
13,889
|
|
|
|
|
|
|
|
Total current assets
|
|
|
479,366
|
|
|
467,430
|
|
|
552,858
|
|
|
|
Property and equipment, net
|
|
|
5,105,911
|
|
|
5,048,463
|
|
|
4,512,154
|
|
|
|
Deferred financing costs
|
|
|
43,638
|
|
|
46,913
|
|
|
53,300
|
|
|
|
Other assets
|
|
|
|
48,605
|
|
|
39,213
|
|
|
45,728
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
5,677,520
|
|
$
|
5,602,019
|
|
$
|
5,164,040
|
|
|
Liabilities and shareholders' equity:
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
41,331
|
|
$
|
46,887
|
|
$
|
54,235
|
|
|
|
Accrued expenses
|
|
|
50,399
|
|
|
68,672
|
|
|
66,026
|
|
|
|
Long-term debt, current
|
|
|
349,167
|
|
|
349,167
|
|
|
7,500
|
|
|
|
Accrued interest
|
|
|
37,732
|
|
|
22,029
|
|
|
21,984
|
|
|
|
Derivative liabilities, current
|
|
|
9,043
|
|
|
9,473
|
|
|
4,984
|
|
|
|
Deferred revenue, current
|
|
|
90,122
|
|
|
86,499
|
|
|
96,658
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
577,794
|
|
|
582,727
|
|
|
251,387
|
|
|
|
Long-term debt, net of current maturities
|
|
|
2,436,969
|
|
|
2,438,532
|
|
|
2,423,337
|
|
|
|
Deferred revenue
|
|
|
128,351
|
|
|
113,359
|
|
|
88,465
|
|
|
|
Other long-term liabilities
|
|
|
14,197
|
|
|
4,196
|
|
|
927
|
|
|
|
|
|
|
|
Total long-term liabilities
|
|
|
2,579,517
|
|
|
2,556,087
|
|
|
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 217,391 and
217,035 shares outstanding as of September 30, 2014 and December
31, 2013, respectively
|
|
|
2,174
|
|
|
2,173
|
|
|
2,170
|
|
|
|
Additional paid-in capital
|
|
|
2,366,560
|
|
|
2,363,758
|
|
|
2,358,858
|
|
|
|
Accumulated other comprehensive loss
|
|
|
(16,191
|
)
|
|
(22,291
|
)
|
|
(8,557
|
)
|
|
|
Retained earnings
|
|
|
167,666
|
|
|
119,565
|
|
|
47,453
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
2,520,209
|
|
|
2,463,205
|
|
|
2,399,924
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
5,677,520
|
|
$
|
5,602,019
|
|
$
|
5,164,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PACIFIC DRILLING S.A. AND SUBSIDIARIES
|
|
|
|
Condensed Consolidated Statements of Cash Flows
|
|
(in thousands) (unaudited)
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30,
2014
|
|
June 30,
2014
|
|
September 30,
2013
|
|
September 30,
2014
|
|
September 30,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
48,101
|
|
$
|
49,882
|
|
$
|
30,327
|
|
$
|
120,213
|
|
$
|
(188
|
)
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation expense
|
|
|
50,187
|
|
|
46,449
|
|
|
36,646
|
|
|
142,790
|
|
|
109,752
|
|
|
Amortization of deferred revenue
|
|
|
(27,278
|
)
|
|
(28,038
|
)
|
|
(18,163
|
)
|
|
(83,324
|
)
|
|
(52,336
|
)
|
|
Amortization of deferred costs
|
|
|
12,885
|
|
|
13,547
|
|
|
9,840
|
|
|
39,642
|
|
|
29,147
|
|
|
Amortization of deferred financing costs
|
|
|
2,544
|
|
|
2,343
|
|
|
1,658
|
|
|
7,465
|
|
|
8,319
|
|
|
Amortization of debt discount
|
|
|
227
|
|
|
182
|
|
|
193
|
|
|
582
|
|
|
252
|
|
|
Write-off of unamortized deferred financing costs
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,644
|
|
|
Costs on interest rate swap termination
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,184
|
|
|
Deferred income taxes
|
|
|
(48
|
)
|
|
3,440
|
|
|
(1,126
|
)
|
|
3,380
|
|
|
(2,505
|
)
|
|
Share-based compensation expense
|
|
|
2,876
|
|
|
2,690
|
|
|
2,471
|
|
|
7,532
|
|
|
6,964
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(26,428
|
)
|
|
18,530
|
|
|
9,084
|
|
|
21,787
|
|
|
21,047
|
|
|
Materials and supplies
|
|
|
(9,624
|
)
|
|
(8,427
|
)
|
|
(7,707
|
)
|
|
(26,387
|
)
|
|
(9,755
|
)
|
|
Prepaid expenses and other assets
|
|
|
(20,952
|
)
|
|
(4,818
|
)
|
|
(4,500
|
)
|
|
(40,370
|
)
|
|
(11,892
|
)
|
|
Accounts payable and accrued expenses
|
|
|
30,049
|
|
|
(3,538
|
)
|
|
16,149
|
|
|
21,829
|
|
|
1,664
|
|
|
Deferred revenue
|
|
|
37,953
|
|
|
8,307
|
|
|
12,391
|
|
|
108,734
|
|
|
27,287
|
|
|
Net cash provided by operating activities
|
|
|
100,492
|
|
|
100,549
|
|
|
87,263
|
|
|
323,873
|
|
|
193,584
|
|
|
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(115,802
|
)
|
|
(545,058
|
)
|
|
(554,716
|
)
|
|
(749,686
|
)
|
|
(772,249
|
)
|
|
Decrease in restricted cash
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
172,184
|
|
|
Net cash used in investing activities
|
|
|
(115,802
|
)
|
|
(545,058
|
)
|
|
(554,716
|
)
|
|
(749,686
|
)
|
|
(600,065
|
)
|
|
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from shares issued under share-based compensation plan
|
|
(73
|
)
|
|
(503
|
)
|
|
—
|
|
|
174
|
|
|
—
|
|
|
Proceeds from long-term debt
|
|
|
—
|
|
|
360,000
|
|
|
—
|
|
|
360,000
|
|
|
1,497,250
|
|
|
Payments on long-term debt
|
|
|
(1,875
|
)
|
|
(1,875
|
)
|
|
(1,875
|
)
|
|
(5,625
|
)
|
|
(1,458,125
|
)
|
|
Payment for costs on interest rate swap termination
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(41,993
|
)
|
|
Payments for financing costs
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(500
|
)
|
|
(62,684
|
)
|
|
Net cash provided by (used in) financing activities
|
|
|
(1,948
|
)
|
|
357,622
|
|
|
(1,875
|
)
|
|
354,049
|
|
|
(65,552
|
)
|
|
Decrease in cash and cash equivalents
|
|
|
(17,258
|
)
|
|
(86,887
|
)
|
|
(469,328
|
)
|
|
(71,764
|
)
|
|
(472,033
|
)
|
|
Cash and cash equivalents, beginning of period
|
|
|
149,617
|
|
|
236,504
|
|
|
603,216
|
|
|
204,123
|
|
|
605,921
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
132,359
|
|
$
|
149,617
|
|
$
|
133,888
|
|
$
|
132,359
|
|
$
|
133,888
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA Reconciliation
EBITDA is defined as earnings before interest, taxes, depreciation and
amortization. EBITDA does not represent and should not be considered an
alternative 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 may not be comparable to
that reported by other companies. EBITDA is included herein because it
is used by the company to measure its operations and is intended to
exclude charges or credits of a non-routine nature that would detract
from an understanding of our operations. Management believes that EBITDA
presents useful information to investors regarding the company's
operating performance during the third quarter of 2014.
|
PACIFIC DRILLING S.A. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary Data - Reconciliation of Net Income to Non-GAAP EBITDA
|
|
(in thousands) (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
September 30,
2014
|
|
|
June 30,
2014
|
|
|
September 30,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
48,101
|
|
$
|
49,882
|
|
$
|
30,327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add (subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
35,626
|
|
|
28,599
|
|
|
23,797
|
|
|
Depreciation expense
|
|
|
50,187
|
|
|
46,449
|
|
|
36,646
|
|
|
Income tax expense
|
|
|
11,536
|
|
|
12,931
|
|
|
5,829
|
|
EBITDA
|
|
|
|
|
|
145,450
|
|
|
137,861
|
|
|
96,599
|
Source: Pacific Drilling