Conference call set 9 a.m. Central time Tuesday, March 1
-
Adjusted EBITDA(a) for the fourth quarter of $149.8
million, representing an adjusted EBITDA margin(b) of 56.0
percent, and adjusted EBITDA for the full year of $595.1 million, an
increase of 5.6 percent over the prior year’s adjusted EBITDA
-
Revenue efficiency(c) of 97.3 percent for the fourth
quarter yielded revenue of $267.6 million. For the full year, revenue
efficiency of 94.7 percent yielded revenue of $1,085.1 million.
-
Cash flow from operations for the full year was a record $422.1
million, an increase of 6.5 percent over the prior year as result of
significant cost reductions of over $100.0 million for full-year 2015
LUXEMBOURG--(BUSINESS WIRE)--
Pacific Drilling S.A. (NYSE:PACD) today announced a net loss for
fourth-quarter 2015 of $13.6 million or $0.06 per diluted share,
compared to net income for third-quarter 2015 of $41.0 million or $0.19
per diluted share. Net income for fourth-quarter 2014 was $68.0 million
or $0.32 per diluted share.
Net income for full-year 2015 was $126.2 million or $0.60 per diluted
share, compared to net income for full-year 2014 of $188.3 million or
$0.87 per diluted share.
On Oct. 29, 2015, we exercised our right to rescind the construction
contract for the Pacific Zonda due to the shipyard’s failure to
timely deliver the vessel in accordance with the specifications of the
construction contract, and in connection with the rescission, the 2014
revolving credit facility was terminated on Oct. 30, 2015. Our
fourth-quarter and full-year 2015 net income included a non-recurring
loss of $40.2 million from the construction contract rescission and a
$6.0 million write-off of deferred financing charges from termination of
the 2014 revolving credit facility. A reconciliation of net income
excluding charges(d) to reported net income is included in an
accompanying schedule to this release.
CEO Chris Beckett said, “Pacific Drilling delivered another financially
robust quarter capping a year with a strong revenue efficiency, and the
most cost efficient operations since the company began operating,
delivering record adjusted EBITDA for the year. In the face of a very
challenging market environment, the Pacific team has demonstrated
tremendous dedication and professionalism enabling us to achieve our
cost cutting goals, generate additional liquidity, and achieve new
performance records.”
Mr. Beckett continued, “Going forward, our efforts will continue to be
focused on providing our clients with the highest quality service and
safe and efficient operations, in combination with innovative technical
and creative commercial solutions, which will continue to be
differentiating factors for us. With the shipyard’s failure to deliver
our final drillship by the required date, we have completed our current
newbuild program and have no further new construction expenditures.
Pacific Drilling has the newest and highest-quality fleet in the
industry and is well positioned for an extended downturn.”
Fourth-Quarter and Full-Year 2015 Operational
and Financial Commentary
Contract drilling revenue for fourth-quarter 2015 was $267.6 million,
which included $20.4 million of deferred revenue amortization, compared
to contract drilling revenue of $260.2 million for third-quarter 2015,
which included $21.7 million of deferred revenue amortization. Revenue
benefited from an overall improved revenue efficiency performance during
the quarter, offset by the Pacific Khamsin completing its
drilling operations on Dec. 17, 2015. Contract drilling revenue for the
year ended Dec. 31, 2015, was $1,085.1 million, including $86.3 million
of deferred revenue amortization, as compared to contract drilling
revenue of $1,085.8 million, including $109.2 million of deferred
revenue amortization, for the year ended Dec. 31, 2014.
Operating expenses for fourth-quarter 2015 were $104.9 million as
compared to $98.3 million for third-quarter 2015. Operating expenses for
fourth-quarter 2015 included $5.8 million in amortization of deferred
costs, $7.0 million in reimbursable expenses, and $7.6 million in
shore-based and other support costs. Direct rig-related daily operating
expenses for operating rigs, excluding reimbursable costs and
non-recurring personnel charges related to our Nigerian operations,
averaged $150,300 in fourth-quarter 2015, as compared to $154,800 for
third-quarter 2015. Operating expenses for full-year 2015 were $431.3
million as compared to our initial 2015 guidance of $500-$525 million
and $459.6 million for full-year 2014. The decrease in operating
expenses was primarily the result of fleet-wide cost savings measures.
In 2015, operating expenses included $26.0 million in amortization of
deferred costs, $27.3 million in reimbursable expenses, and $32.5
million in shore-based and other support costs.
General and administrative expenses for fourth-quarter 2015 were $12.6
million as compared to $13.2 million for third-quarter 2015. General and
administrative expenses for full-year 2015 were $55.5 million as
compared to our initial 2015 guidance of $63-$66 million and $57.7
million for the prior year. The decrease in general and administrative
expenses was primarily related to Company-wide cost savings measures.
Adjusted EBITDA for fourth-quarter 2015 was $149.8 million, compared to
EBITDA of $148.2 million in the prior quarter. Adjusted EBITDA for the
year ended Dec. 31, 2015, was $595.1 million, compared to adjusted
EBITDA of $563.3 million for the year ended Dec. 31, 2014. Adjusted
EBITDA margin for full-year 2015 was 54.8 percent, as compared to
adjusted EBITDA margin of 51.9 percent for full-year 2014. A
reconciliation of EBITDA and adjusted EBITDA to net income is included
in the accompanying schedules to this release.
Interest expense for fourth-quarter 2015 was $50.1 million, as compared
to $36.4 million for third-quarter 2015, primarily due to a reduction in
capitalized interest resulting from placing the Pacific Meltem
into service in late August 2015. Interest expense for full-year 2015
was $156.4 million.
Liquidity and Capital Expenditures
For full-year 2015, cash flow from operations was $422.1 million. Cash
balances totaled $116.0 million as of Dec. 31, 2015, and total
outstanding debt was $2.89 billion. As of Dec. 31, 2015, we had
approximately $566.0 million of available liquidity, including $450.0
million of undrawn capacity under our 2013 revolving credit facility.
CFO Paul Reese commented, “2015 was a year of significant cost savings,
which, coupled with the fourth quarter amendments of our credit
facilities, generated substantial additional liquidity. In the fourth
quarter, we exceeded our goals bringing daily rig related operating
expenses to $150,000 and daily idle costs below $40,000. With no further
new-build construction capex and no debt maturities until Dec. 2017, the
cash that is generated from our existing backlog should reduce our net
debt balance significantly. This positions us well during these
challenging times in our industry.”
Investor Toolkit
Updated schedules of expected amortization of deferred revenue,
depreciation and interest expense for our existing financing are
available in the “Quarterly and Annual Results” subsection of the
“Investor Relations” section of our website, www.pacificdrilling.com.
Footnotes
(a) EBITDA and adjusted EBITDA are non-GAAP financial
measures. For a definition of EBITDA and adjusted EBITDA and a
reconciliation to net income, please refer to the schedules included in
this release.
(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 highlights 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 (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) Net income excluding charges is a non-GAAP financial
measure. For a definition of net income excluding charges and a
reconciliation to net income, please refer to the schedules included in
this release.
Conference Call
Pacific Drilling will conduct a conference call at 9 a.m. Central time
on Tuesday, March 1, to discuss fourth-quarter and full-year 2015
results. To participate, please dial +1 913-312-0823 or 1-888-204-4368
and refer to confirmation code 1396374 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 may be accessed after noon Central time on
Tuesday, March 1, 2016, by dialing +1 719-457-0820 or 1-888-203-1112,
and using access code 1396374. 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 committed to becoming the industry’s preferred
high-specification, floating-rig drilling contractor. Pacific Drilling’s
fleet of seven drillships represents one of the youngest and most
technologically advanced fleets in the world. 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, and are generally identifiable
by the use of words such as “anticipate,” “believe,” “could,”
“estimate,” “expect,” “intend,” “our ability to,” “plan,” “potential,”
“project,” “should,” “will,” “would,” or other similar words, which are
generally not historical in nature. Our forward-looking statements
express our current expectations or forecasts of possible future results
or events, including future client contract opportunities, availability
of vessels, revenues and operating results and revenue efficiency.
Although we believe that these forward-looking statements are reasonable
as and when made, these statements are not guarantees, and actual future
results may differ materially due to a variety of factors. These
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 projections include: future levels of
offshore drilling activity; 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; actual contract
commencement dates; downtime and other risks associated with offshore
rig operations, including unscheduled repairs or maintenance,
relocations, severe weather or hurricanes; and our ability to repay debt
and adequacy of and access to sources of liquidity. For additional
information regarding 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
|
|
Years Ended December 31,
|
|
|
|
December 31,
2015
|
|
September 30,
2015
|
|
December 31,
2014
|
|
2015
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling
|
|
$
|
267,600
|
|
|
$
|
260,176
|
|
|
$
|
319,737
|
|
|
$
|
1,085,063
|
|
|
$
|
1,085,794
|
|
|
$
|
745,574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
(104,870
|
)
|
|
(98,334
|
)
|
|
(123,836
|
)
|
|
(431,261
|
)
|
|
(459,617
|
)
|
|
(337,277
|
)
|
|
General and administrative expenses
|
|
(12,609
|
)
|
|
(13,208
|
)
|
|
(14,889
|
)
|
|
(55,511
|
)
|
|
(57,662
|
)
|
|
(48,614
|
)
|
|
Depreciation expense
|
|
(67,679
|
)
|
|
(61,472
|
)
|
|
(56,547
|
)
|
|
(243,457
|
)
|
|
(199,337
|
)
|
|
(149,465
|
)
|
|
|
|
(185,158
|
)
|
|
(173,014
|
)
|
|
(195,272
|
)
|
|
(730,229
|
)
|
|
(716,616
|
)
|
|
(535,356
|
)
|
|
Loss from construction contract rescission
|
|
(40,155
|
)
|
|
—
|
|
|
—
|
|
|
(40,155
|
)
|
|
—
|
|
|
—
|
|
|
Operating income
|
|
42,287
|
|
|
87,162
|
|
|
124,465
|
|
|
314,679
|
|
|
369,178
|
|
|
210,218
|
|
|
Other expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs on interest rate swap termination
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
(38,184
|
)
|
|
Interest expense
|
|
(50,064
|
)
|
|
(36,361
|
)
|
|
(39,874
|
)
|
|
(156,361
|
)
|
|
(130,130
|
)
|
|
(94,027
|
)
|
|
Total interest expense
|
|
(50,064
|
)
|
|
(36,361
|
)
|
|
(39,874
|
)
|
|
(156,361
|
)
|
|
(130,130
|
)
|
|
(132,211
|
)
|
|
Costs on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(28,428
|
)
|
|
Other expense
|
|
(364
|
)
|
|
(459
|
)
|
|
(1,902
|
)
|
|
(3,217
|
)
|
|
(5,171
|
)
|
|
(1,554
|
)
|
|
Income (loss) before income taxes
|
|
(8,141
|
)
|
|
50,342
|
|
|
82,689
|
|
|
155,101
|
|
|
233,877
|
|
|
48,025
|
|
|
Income tax expense
|
|
(5,451
|
)
|
|
(9,344
|
)
|
|
(14,645
|
)
|
|
(28,871
|
)
|
|
(45,620
|
)
|
|
(22,523
|
)
|
|
Net income (loss)
|
|
$
|
(13,592
|
)
|
|
$
|
40,998
|
|
|
$
|
68,044
|
|
|
$
|
126,230
|
|
|
$
|
188,257
|
|
|
$
|
25,502
|
|
|
Earnings (loss) per common share, basic
|
|
$
|
(0.06
|
)
|
|
$
|
0.19
|
|
|
$
|
0.32
|
|
|
$
|
0.60
|
|
|
$
|
0.87
|
|
|
$
|
0.12
|
|
|
Weighted average number of common shares, basic
|
|
210,771
|
|
|
210,650
|
|
|
217,132
|
|
|
211,454
|
|
|
217,223
|
|
|
216,964
|
|
|
Earnings (loss) per common share, diluted
|
|
$
|
(0.06
|
)
|
|
$
|
0.19
|
|
|
$
|
0.32
|
|
|
$
|
0.60
|
|
|
$
|
0.87
|
|
|
$
|
0.12
|
|
|
Weighted average number of common shares, diluted
|
|
210,771
|
|
|
210,661
|
|
|
217,197
|
|
|
211,557
|
|
|
217,376
|
|
|
217,421
|
|
|
|
|
PACIFIC DRILLING S.A. AND SUBSIDIARIES
|
|
|
|
Condensed Consolidated Balance Sheets
|
|
(in thousands, except par value) (unaudited)
|
|
|
|
|
|
December 31,
|
|
September 30,
|
|
December 31,
|
|
|
|
2015
|
|
2015
|
|
2014
|
|
Assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
116,033
|
|
|
$
|
151,065
|
|
|
$
|
167,794
|
|
|
Accounts receivable
|
|
168,050
|
|
|
146,444
|
|
|
231,027
|
|
|
Materials and supplies
|
|
98,243
|
|
|
101,982
|
|
|
95,660
|
|
|
Deferred financing costs, current
|
|
14,636
|
|
|
14,710
|
|
|
14,665
|
|
|
Deferred costs, current
|
|
10,582
|
|
|
12,640
|
|
|
25,199
|
|
|
Prepaid expenses and other current assets
|
|
12,467
|
|
|
21,349
|
|
|
17,056
|
|
|
Total current assets
|
|
420,011
|
|
|
448,190
|
|
|
551,401
|
|
|
Property and equipment, net
|
|
5,143,556
|
|
|
5,408,315
|
|
|
5,431,823
|
|
|
Deferred financing costs
|
|
29,583
|
|
|
35,324
|
|
|
45,978
|
|
|
Long-term receivable
|
|
202,575
|
|
|
—
|
|
|
—
|
|
|
Other assets
|
|
36,753
|
|
|
29,107
|
|
|
48,099
|
|
|
Total assets
|
|
$
|
5,832,478
|
|
|
$
|
5,920,936
|
|
|
$
|
6,077,301
|
|
|
Liabilities and shareholders’ equity:
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
44,167
|
|
|
$
|
37,773
|
|
|
$
|
40,577
|
|
|
Accrued expenses
|
|
44,221
|
|
|
44,123
|
|
|
45,963
|
|
|
Long-term debt, current
|
|
89,583
|
|
|
89,583
|
|
|
369,000
|
|
|
Accrued interest
|
|
16,442
|
|
|
36,174
|
|
|
24,534
|
|
|
Derivative liabilities, current
|
|
7,483
|
|
|
9,315
|
|
|
8,648
|
|
|
Deferred revenue, current
|
|
49,227
|
|
|
58,598
|
|
|
84,104
|
|
|
Total current liabilities
|
|
251,123
|
|
|
275,566
|
|
|
572,826
|
|
|
Long-term debt, net of current maturities
|
|
2,795,845
|
|
|
2,848,439
|
|
|
2,781,242
|
|
|
Deferred revenue
|
|
60,639
|
|
|
72,226
|
|
|
108,812
|
|
|
Other long-term liabilities
|
|
32,816
|
|
|
29,620
|
|
|
35,549
|
|
|
Total long-term liabilities
|
|
2,889,300
|
|
|
2,950,285
|
|
|
2,925,603
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
Shareholders’ equity:
|
|
|
|
|
|
|
|
Common shares, $0.01 par value per share, 5,000,000 shares
authorized, 232,770 shares issued and 211,207 and 215,784 shares
outstanding as of December 31, 2015 and December 31, 2014,
respectively
|
|
2,185
|
|
|
2,179
|
|
|
2,175
|
|
|
Additional paid-in capital
|
|
2,381,420
|
|
|
2,377,411
|
|
|
2,369,432
|
|
|
Treasury shares, at cost
|
|
(30,000
|
)
|
|
(30,000
|
)
|
|
(8,240
|
)
|
|
Accumulated other comprehensive loss
|
|
(23,490
|
)
|
|
(30,037
|
)
|
|
(20,205
|
)
|
|
Retained earnings
|
|
361,940
|
|
|
375,532
|
|
|
235,710
|
|
|
Total shareholders’ equity
|
|
2,692,055
|
|
|
2,695,085
|
|
|
2,578,872
|
|
|
Total liabilities and shareholders’ equity
|
|
$
|
5,832,478
|
|
|
$
|
5,920,936
|
|
|
$
|
6,077,301
|
|
|
|
|
PACIFIC DRILLING S. A. AND SUBSIDIARIES
|
|
|
|
Condensed Consolidated Statements of Cash Flows
|
|
(in thousands) (unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
Years Ended December 31,
|
|
|
|
December 31,
2015
|
|
September 30,
2015
|
|
December 31,
2014
|
|
2015
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(13,592
|
)
|
|
$
|
40,998
|
|
|
$
|
68,044
|
|
|
$
|
126,230
|
|
|
$
|
188,257
|
|
|
$
|
25,502
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation expense
|
|
67,679
|
|
|
61,472
|
|
|
56,547
|
|
|
243,457
|
|
|
199,337
|
|
|
149,465
|
|
|
Amortization of deferred revenue
|
|
(20,449
|
)
|
|
(21,655
|
)
|
|
(25,884
|
)
|
|
(86,276
|
)
|
|
(109,208
|
)
|
|
(72,515
|
)
|
|
Amortization of deferred costs
|
|
5,832
|
|
|
5,836
|
|
|
11,531
|
|
|
25,951
|
|
|
51,173
|
|
|
39,479
|
|
|
Amortization of deferred financing costs
|
|
3,307
|
|
|
2,772
|
|
|
2,951
|
|
|
11,278
|
|
|
10,416
|
|
|
10,106
|
|
|
Amortization of debt discount
|
|
313
|
|
|
250
|
|
|
235
|
|
|
1,015
|
|
|
817
|
|
|
445
|
|
|
Write-off of unamortized deferred financing costs
|
|
5,965
|
|
|
—
|
|
—
|
|
5,965
|
|
|
—
|
|
|
27,644
|
|
|
Costs on interest rate swap termination
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|
38,184
|
|
|
Loss from construction contract rescission
|
|
38,084
|
|
|
—
|
|
—
|
|
38,084
|
|
|
—
|
|
|
—
|
|
|
Deferred income taxes
|
|
8,534
|
|
|
2,799
|
|
|
15,281
|
|
|
9,840
|
|
|
18,661
|
|
|
(3,119
|
)
|
|
Share-based compensation expense
|
|
4,095
|
|
|
2,615
|
|
|
2,952
|
|
|
12,534
|
|
|
10,484
|
|
|
9,315
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
(21,606
|
)
|
|
43,052
|
|
|
(46,736
|
)
|
|
62,977
|
|
|
(24,949
|
)
|
|
(53,779
|
)
|
|
Materials and supplies
|
|
3,739
|
|
|
444
|
|
|
(3,564
|
)
|
|
(2,583
|
)
|
|
(29,951
|
)
|
|
(16,083
|
)
|
|
Prepaid expenses and other assets
|
|
(11,071
|
)
|
|
3,018
|
|
|
(16,123
|
)
|
|
(10,840
|
)
|
|
(56,493
|
)
|
|
(30,840
|
)
|
|
Accounts payable and accrued expenses
|
|
(10,654
|
)
|
|
10,869
|
|
|
(964
|
)
|
|
(18,712
|
)
|
|
20,865
|
|
|
12,301
|
|
|
Deferred revenue
|
|
(509
|
)
|
|
1,447
|
|
|
8,267
|
|
|
3,226
|
|
|
117,001
|
|
|
94,482
|
|
|
Net cash provided by operating activities
|
|
59,667
|
|
|
153,917
|
|
|
72,537
|
|
|
422,146
|
|
|
396,410
|
|
|
230,587
|
|
|
Cash flow from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
(38,134
|
)
|
|
(41,208
|
)
|
|
(386,519
|
)
|
|
(181,458
|
)
|
|
(1,136,205
|
)
|
|
(876,142
|
)
|
|
Decrease in restricted cash
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|
172,184
|
|
|
Net cash used in investing activities
|
|
(38,134
|
)
|
|
(41,208
|
)
|
|
(386,519
|
)
|
|
(181,458
|
)
|
|
(1,136,205
|
)
|
|
(703,958
|
)
|
|
Cash flow from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net proceeds (payments) from shares issued under share-based
compensation plan
|
|
(80
|
)
|
|
(37
|
)
|
|
(79
|
)
|
|
(536
|
)
|
|
95
|
|
|
—
|
|
|
Proceeds from long-term debt
|
|
50,000
|
|
|
—
|
|
400,000
|
|
|
315,000
|
|
|
760,000
|
|
|
1,656,250
|
|
|
Payments on long-term debt
|
|
(102,915
|
)
|
|
(66,875
|
)
|
|
(36,208
|
)
|
|
(581,083
|
)
|
|
(41,833
|
)
|
|
(1,480,000
|
)
|
|
Payments for costs on interest rate swap termination
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
(41,993
|
)
|
|
Payments for financing costs
|
|
(3,570
|
)
|
|
—
|
|
(7,069
|
)
|
|
(4,070
|
)
|
|
(7,569
|
)
|
|
(62,684
|
)
|
|
Purchases of treasury shares
|
|
—
|
|
—
|
|
(7,227
|
)
|
|
(21,760
|
)
|
|
(7,227
|
)
|
|
—
|
|
|
Net cash provided by (used in) financing activities
|
|
(56,565
|
)
|
|
(66,912
|
)
|
|
349,417
|
|
|
(292,449
|
)
|
|
703,466
|
|
|
71,573
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
(35,032
|
)
|
|
45,797
|
|
|
35,435
|
|
|
(51,761
|
)
|
|
(36,329
|
)
|
|
(401,798
|
)
|
|
Cash and cash equivalents, beginning of period
|
|
151,065
|
|
|
105,268
|
|
|
132,359
|
|
|
167,794
|
|
|
204,123
|
|
|
605,921
|
|
|
Cash and cash equivalents, end of period
|
|
$
|
116,033
|
|
|
$
|
151,065
|
|
|
$
|
167,794
|
|
|
$
|
116,033
|
|
|
$
|
167,794
|
|
|
$
|
204,123
|
|
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 from construction contract rescission,
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 management to measure the company’s
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 periods presented below.
|
|
|
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
|
|
Years Ended December 31,
|
|
|
|
December 31,
2015
|
|
September 30,
2015
|
|
December 31,
2014
|
|
2015
|
|
2014
|
|
2013
|
|
Net income (loss)
|
|
$
|
(13,592
|
)
|
|
$
|
40,998
|
|
|
$
|
68,044
|
|
|
$
|
126,230
|
|
|
$
|
188,257
|
|
|
$
|
25,502
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs on interest rate swap termination
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,184
|
|
Write-off of unamortized deferred financing costs
|
|
5,965
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,644
|
|
Interest expense
|
|
44,099
|
|
|
36,361
|
|
|
39,874
|
|
|
156,361
|
|
|
130,130
|
|
|
66,383
|
|
Interest expense
|
|
50,064
|
|
|
36,361
|
|
|
39,874
|
|
|
156,361
|
|
|
130,130
|
|
|
132,211
|
|
Depreciation expense
|
|
67,679
|
|
|
61,472
|
|
|
56,547
|
|
|
243,457
|
|
|
199,337
|
|
|
149,465
|
|
Income taxes
|
|
5,451
|
|
|
9,344
|
|
|
14,645
|
|
|
28,871
|
|
|
45,620
|
|
|
22,523
|
|
EBITDA
|
|
$
|
109,602
|
|
|
$
|
148,175
|
|
|
$
|
179,110
|
|
|
$
|
554,919
|
|
|
$
|
563,344
|
|
|
$
|
329,701
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,428
|
|
Loss from construction contract rescission
|
|
40,155
|
|
|
—
|
|
|
—
|
|
|
40,155
|
|
|
—
|
|
|
—
|
|
Adjusted EBITDA
|
|
$
|
149,757
|
|
|
$
|
148,175
|
|
|
$
|
179,110
|
|
|
$
|
595,074
|
|
|
$
|
563,344
|
|
|
$
|
358,129
|
Net Income Excluding Charges Reconciliation
During the fourth quarter of 2015, the company recorded a $40.2 million
loss provision as a result of the construction contract rescission and a
$6.0 million write-off of unamortized deferred financing costs related
to our termination of the 2014 revolving credit facility. During the
second quarter of 2013, the company closed a refinancing transaction
which resulted in non-recurring costs primarily related to swap
termination fees and the write-off of unamortized deferred financing
costs. Management believes that net income excluding charges related to
our loss from construction contract rescission and refinancings provides
useful and comparable information to investors regarding the company’s
operating performance. Specifically, the excluded charges are of a
non-routine nature and management believes they 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
|
|
Years Ended December 31,
|
|
|
|
December 31,
2015
|
|
September 30,
2015
|
|
December 31,
2014
|
|
2015
|
|
2014
|
|
2013
|
|
Net income (loss)
|
|
$
|
(13,592
|
)
|
|
$
|
40,998
|
|
|
$
|
68,044
|
|
|
$
|
126,230
|
|
|
$
|
188,257
|
|
|
$
|
25,502
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from construction contract rescission
|
|
40,155
|
|
|
—
|
|
|
—
|
|
|
40,155
|
|
|
—
|
|
|
—
|
|
Costs on interest rate swap termination
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,184
|
|
Costs on extinguishment of debt
|
|
5,965
|
|
|
—
|
|
|
—
|
|
|
5,965
|
|
|
—
|
|
|
28,428
|
|
Net income excluding charges
|
|
$
|
32,528
|
|
|
$
|
40,998
|
|
|
$
|
68,044
|
|
|
$
|
172,350
|
|
|
$
|
188,257
|
|
|
$
|
92,114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share, basic and diluted
|
|
$
|
(0.06
|
)
|
|
$
|
0.19
|
|
|
$
|
0.32
|
|
|
$
|
0.60
|
|
|
$
|
0.87
|
|
|
$
|
0.12
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from construction contract rescission
|
|
0.19
|
|
|
—
|
|
|
—
|
|
|
0.19
|
|
|
—
|
|
|
—
|
|
Costs on interest rate swap termination
|
|
—
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
0.18
|
|
Costs on extinguishment of debt
|
|
0.03
|
|
|
—
|
|
|
—
|
|
|
0.03
|
|
|
—
|
|
|
0.13
|
|
Earnings excluding charges per common share, basic and diluted
|
|
$
|
0.16
|
|
|
$
|
0.19
|
|
|
$
|
0.32
|
|
|
$
|
0.82
|
|
|
$
|
0.87
|
|
|
$
|
0.43
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160229007018/en/
Source: Pacific Drilling S.A.