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Last updated on April 21, 2014 at 5:21 EDT

Parker Drilling Reports 2012 Fourth Quarter Results

February 21, 2013

HOUSTON, Feb. 21, 2013 /PRNewswire/ — Parker Drilling Company (NYSE-PKD), an international drilling contractor, drilling services and rental tools provider, today reported results for the quarter and year-to-date periods ended December 31, 2012. The Company’s results for the 2012 fourth quarter included a net loss of $20.1 million or $0.17 per diluted share on revenues of $157.2 million. Results for the period included $16.3 million, pre-tax, of non-routine expenses primarily related to the previously disclosed proposed settlement of U.S. Department of Justice and Securities and Exchange Commission investigations. Excluding the effects of non-routine items, the Company reported a net loss of $4.0 million or $0.03 per diluted share compared with similarly adjusted 2012 third quarter net income of $11.4 million or $0.10 per diluted share on revenues of $165.3 million, and 2011 fourth quarter net income of $20.2 million or $0.17 per diluted share on revenues of $181.1 million.

(Logo: http://photos.prnewswire.com/prnh/20050620/PARKERDRILLINGLOGO)

Adjusted EBITDA, excluding non-routine items, was $35.8 million, compared with $55.6 million for the preceding third quarter, and $66.7 million for the prior year’s fourth quarter.

Parker Drilling’s fourth quarter results primarily reflect the impacts of recent market trends, strategic decisions to better position the Company for profitable growth, and the charge taken for the proposed settlement with the U.S. Department of Justice and Securities and Exchange Commission.

“During the latter part of 2012, business trends and competitive conditions in a number of markets were challenging. Our responses have focused on leveraging our strategic position, preserving profitability, and improving future opportunities to grow. These efforts have already begun to have a favorable impact on performance,” said Parker Drilling President and Chief Executive Officer, Gary Rich. “Rental Tools utilization has risen for two consecutive months. Our barge rig fleet utilization is currently above the fourth quarter fleet average and the fleet’s average dayrate has continued to increase. Our international operations have four more rigs under contract than at year-end, including contracts to begin work in Kurdistan with two rigs to be relocated from Kazakhstan. And, we recently were awarded an O&M contract to operate three ExxonMobil platforms off the coast of California.

“In choosing to be selective and strategic in our response to market conditions, we believe we have enhanced our relationships with key customers in core markets, provided momentum to our 2013 performance potential, and built a stronger base from which to expand and grow,” noted Gary Rich.

Fourth Quarter Highlights

  • During the quarter, the International Drilling operation began moving two rigs from their base in Algeria to reposition them for work in other markets and also committed to redeploy two rigs from Kazakhstan for work in Kurdistan. As a result, the Company incurred costs related to the rig moves and the write-off of unrecoverable VAT taxes of approximately $4.7 million.
  • The Company made use of slowing activity in the U.S. Gulf of Mexico inland waters drilling market to bring forward dry-dock inspections, repairs and general maintenance for three barge drilling rigs. This took these units out of service for portions of the quarter and limited operating cost leverage.
  • The first of Parker Drilling’s two AADU rigs completed its acceptance testing process and began operations under the terms of the Company’s five-year contract with BP.
  • The Rental Tools segment addressed weakened conditions in the U.S. land drilling market with a balance of competitive price responses and other actions, strengthening its position with key customers in core markets.
  • Parker Drilling reached an agreement in principle with the Department of Justice and staff of the Securities and Exchange Commission related to investigations of possible violations of U.S. law, recording a charge associated with the proposed settlement.
  • The Company amended its $130 million Credit Agreement, consisting of a term loan and revolving credit facility, extending its expiration to 2017.

Outlook

“I believe we are making significant improvements in Parker’s fundamental performance potential,” commented Mr. Rich. “Our Rental Tools business is poised to make gains in the growing offshore Gulf of Mexico drilling market while strengthening its U.S. land-related operations. Our U.S. barge fleet is well-positioned for a period of sustained drilling in the Gulf of Mexico’s inland waters. The repositioning of several international rigs enhances our ability to participate in other large and growing markets. And, our Alaska operations are underway on a multi-year drilling program and our O&M portfolio is growing.

“In addition, our balance sheet is in sound condition and we are confident we have the financial capacity to sustain our businesses, invest in growth opportunities and fund the proposed settlement with the DOJ and SEC,” he concluded.

Fourth Quarter Review

Parker Drilling’s revenues for the 2012 fourth quarter, compared with the 2012 third quarter, declined 5 percent to $157.2 million from $165.3 million, segment gross margin declined 31 percent to $44.1 million from $63.8 million, while segment gross margin was 28.0 percent of revenues compared with 38.6 percent. Compared with the 2011 fourth quarter, the Company’s revenues declined 13 percent from revenues of $181.1 million, segment gross margin declined 40 percent from segment gross margin of $74.0 million, and segment gross margin as a percent of revenues was below the 2011 fourth quarter level of 40.9 percent. (Segment gross margin excludes depreciation and amortization expense).

Results for the 2012 fourth quarter included $16.3 million, pre-tax, of non-routine expenses primarily related to the proposed settlement of U.S. Department of Justice and Securities and Exchange Commission investigations. These non-routine expenses reduced after-tax earnings by $16.1 million, or approximately $0.14 per diluted share. The results for the 2012 third quarter and 2011 fourth quarter included non-routine, after-tax expense of $0.4 million and $110.4 million, respectively. Details of the non-routine items are provided in the attached financial tables.

  • Rental Tools segment revenues were $55.7 million, segment gross margin was $32.8 million and segment gross margin as a percentage of revenues was 59.0 percent. Compared with the 2012 third quarter, segment revenues, gross margin and gross margin as a percent of revenues declined. Actions initiated earlier in response to weakened market conditions and more competitive pricing shored up profitability and began to restore utilization levels during the quarter.
  • U.S. Barge Drilling segment revenues were $29.4 million, segment gross margin was $13.2 million, and segment gross margin as a percentage of revenues was 44.8 percent. Compared with the 2012 third quarter, segment revenues, gross margin and gross margin as a percent of revenues declined. As drilling activity slowed toward the year-end and in anticipation of the market’s future need for barge drilling rigs, the Company took three units out of service for drydock repairs and inspections and general maintenance work. While this reduced the number of the Company’s barge drilling rigs available to the market, the impact of this was partially offset by an increase in the fleet-average dayrate for the period.
  • U.S. Drilling segment revenues were $1.4 million. The segment reported its first operating revenues in the 2012 fourth quarter as the first of two AADU rigs began operations late in the period. The increase in operating expense reflects the impact of the rig’s transition, during the 2012 third quarter, from a capitalized construction project to a deployed rig with operating costs.
  • International Drilling segment revenues were $67.6 million, segment gross margin was $2.7 million, and segment gross margin as a percentage of revenues was 3.9 percent. Compared with the 2012 third quarter, segment revenues, gross margin and gross margin as a percent of revenues declined. The reduction in segment revenues was primarily due to the impact from a decline in average rig fleet utilization. This was partially offset by an increase in operating and maintenance (O&M) contract revenues. The decline in segment gross margin is primarily due to lower rig utilization and costs associated with strategic decisions to reposition rigs from Algeria and redeploy rigs from Kazakhstan. In addition, it reflects the transition to a new O&M contract in Sakhalin Island, Russia, from the previous, expired contract.
  • Technical Services segment revenues were $3.1 million and the segment had a gross margin loss of $0.1 million. The reduction in segment revenues was primarily due to the completion of some early-phase engineering projects, while the segment’s earnings loss reflects this and the costs of retaining engineering expertise and experience during the transition between projects.

2012 Summary

The Company’s results for the 2012 year included net income of $37.3 million or $0.31 per diluted share on revenues of $678.0 million, compared with the prior year’s net loss of $50.5 million or $0.43 per diluted share on revenues of $686.6 million. Excluding the effects of non-routine items, the Company reported adjusted net income of $55.0 million or $0.46 per diluted share compared with similarly adjusted 2011 net income of $62.9 million or $0.54 per diluted share. Adjusted EBITDA, excluding non-routine items, was $234.6 million for 2012 and $242.6 million for the prior year.

Results for 2012 included $18.7 million, pre-tax, of non-routine expenses primarily related to the proposed settlement of U.S. Department of Justice and Securities and Exchange Commission investigations. These non-routine expenses reduced after-tax earnings by $17.7 million or $0.15 per diluted share. Earnings for the 2011 year included $113.4 million of after-tax expense for non-routine items, or $0.97 per diluted share.

Capital Expenditures

Capital expenditures were $43.9 million for the 2012 fourth quarter and $191.5 million for the year. Capital expenditures for 2012 included $86.0 million for the construction of two AADU rigs and $62.0 million for the purchase of tubular goods and other rental tools equipment. In addition, the Company invested $13.8 million in a new enterprise resource planning system that is expected to increase the ability to address business matters and to assess and leverage market opportunities.

Conference Call

Parker Drilling has scheduled a conference call for 10:00 a.m. CST (11:00 a.m. EST) on Thursday, February 21, 2013, to review its reported results. Those interested in listening to the call by telephone may do so by dialing (480) 629-9692. The call can also be accessed through the Investor Relations section of the Company’s website at http://www.parkerdrilling.com. A replay of the call can be accessed on the Company’s website for 12 months and will be available by telephone from Feb. 21 through Feb. 28 by dialing (303) 590-3030 and using the access code 4591662#.

Cautionary Statement

This press release contains certain statements that may be deemed to be “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. All statements in this press release other than statements of historical facts that address activities, events or developments that the Company expects, projects, believes, or anticipates will or may occur in the future are forward-looking statements. These statements include, but are not limited to, statements about the proposed settlement of the Company’s Department of Justice and Securities and Exchange Commission investigations, anticipated future financial or operational results; the outlook for rig utilization and dayrates; general industry conditions such as the demand for drilling and the factors affecting demand; competitive advantages such as technological innovation; future operating results of the Company’s rigs, rental tools operations and projects under management; capital expenditures; expansion and growth opportunities; acquisitions or joint ventures; asset sales; successful negotiation and execution of contracts; scheduled delivery of drilling rigs for operation; the strengthening of the Company’s financial position; increases in market share; outcomes of legal proceedings and investigations; compliance with credit facility and indenture covenants; and similar matters. These statements are based on certain assumptions made by the Company based on management’s experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Although the Company believes that its expectations stated in this press release are based on reasonable assumptions, such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, that could cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include risks relating to changes in worldwide economic and business conditions that could adversely affect market conditions, fluctuations in oil and natural gas prices that could reduce the demand for drilling services, changes in laws or government regulations that could adversely affect the cost of doing business, our ability to refinance our debt and other important factors that could cause actual results to differ materially from those projected as described in the Company’s reports filed with the Securities and Exchange Commission. See “Risk Factors” in the Company’s Annual Report filed on Form 10-K and other public filings and press releases. Each forward-looking statement speaks only as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Company Description

Parker Drilling (NYSE: PKD) provides high-performance contract drilling solutions, rental tools and project management services to the energy industry. Parker Drilling’s rig fleet included 22 land rigs and two offshore barge rigs in international locations, 12 barge rigs in the U.S. Gulf of Mexico, and three land rigs in the U.S. The Company’s rental tools business supplies premium equipment to operators on land and offshore in the U.S. and select international markets. Parker Drilling also performs contract drilling for customer-owned rigs and provides technical services addressing drilling challenges for E&P customers worldwide. More information about Parker Drilling can be found at http://www.parkerdrilling.com, including operating status reports for the Company’s Rental Tools segment and its international and U.S. rig fleets, updated monthly.

                                                   PARKER DRILLING COMPANY
                                            Consolidated Condensed Balance Sheets
                                                   (Dollars in Thousands)

                                              December 31, 2012                   December 31, 2011
                                              -----------------                   -----------------
                                                 (Unaudited)
                          ASSETS
    CURRENT ASSETS
    Cash and Cash Equivalents                                            $87,886                       $97,869
    Accounts and Notes Receivable, Net                                   168,562                       183,923
    Rig Materials and Supplies                                            28,860                        29,947
    Deferred Costs                                                         1,089                         3,249
    Deferred Income Taxes                                                  8,742                         6,650
    Assets held for sale                                                  11,550                         5,315
    Other Current Assets                                                  46,345                        40,660
    TOTAL CURRENT ASSETS                                                 353,034                       367,613
                                                                         -------                       -------

    PROPERTY, PLANT AND EQUIPMENT, NET                                   786,158                       719,809

    OTHER ASSETS
    Deferred Income Taxes                                                 95,295                       108,311
    Other Assets                                                          21,246                        20,513
                                                                          ------
    TOTAL OTHER ASSETS                                                   116,541                       128,824
                                                                         -------                       -------

    TOTAL ASSETS                                                      $1,255,733                    $1,216,246
                                                                      ==========                    ==========

              LIABILITIES AND STOCKHOLDERS'
                          EQUITY
    CURRENT LIABILITIES
    Current  Portion of Long-Term Debt                                   $10,000                      $145,723
    Accounts Payable and Accrued
     Liabilities                                                         141,866                       140,087
                                                                         -------                       -------
    TOTAL CURRENT LIABILITIES                                            151,866                       285,810
                                                                         -------                       -------

    LONG-TERM DEBT                                                       469,205                       337,000

    LONG-TERM DEFERRED TAX LIABILITY                                      20,847                        15,934

    OTHER LONG-TERM LIABILITIES                                           23,182                        33,452

    TOTAL CONTROLLING INTEREST IN
     STOCKHOLDERS' EQUITY                                                591,404                       544,606
    Noncontrolling interest                                                 (771)                         (556)
                                                                            ----
    TOTAL EQUITY                                                         590,633                       544,050

    TOTAL LIABILITIES AND
     STOCKHOLDERS' EQUITY                                             $1,255,733                    $1,216,246
                                                                      ==========                    ==========

    Current Ratio                                                           2.32                          1.29

    Total Debt as a  Percent of
     Capitalization                                                           45%                           47%

    Book Value Per Common Share                                            $4.97                         $4.65

                                                                PARKER DRILLING COMPANY
                                                          Consolidated Statement Of Operations
                                                     (Dollars in Thousands, Except Per Share Data)
                                                                      (Unaudited)

                                                                                                                Three Months Ended September 30,
                                                                                                                --------------------------------
                                   Three Months Ended December 31,
                                   -------------------------------
                                                                2012                                      2011                               2012
                                                                ----                                      ----                               ----

    REVENUES:                                               $157,187                                  $181,067                           $165,301

    EXPENSES:
    Operating Expenses                                       113,122                                   107,044                            101,484
    Depreciation and Amortization                             27,660                                    29,624                             29,779

    TOTAL OPERATING GROSS MARGIN                              16,405                                    44,399                             34,038
                                                              ------                                    ------                             ------

    General and Administrative
     Expense                                                 (24,230)                                   (7,930)                            (8,905)
    Impairment and other charges                                   -                                  (170,000)                                 -
    Provision for Reduction in
     Carrying Value of Certain
     Assets                                                        -                                    (1,350)                                 -
    Gain (loss) on Disposition of
     Assets, net                                                (492)                                    1,666                                606
                                                                ----                                     -----

    TOTAL OPERATING INCOME  (LOSS)                            (8,317)                                 (133,215)                            25,739
                                                              ------                                  --------                             ------

    OTHER INCOME AND (EXPENSE):
    Interest Expense                                          (8,409)                                   (5,386)                            (8,171)
    Interest Income                                               44                                        47                                 30
    Loss on extinguishment of debt                              (364)                                        -                               (117)
    Change in fair value of
     derivative positions                                         47                                        76                                 19
    Other                                                       (444)                                      197                                 26
    TOTAL OTHER EXPENSE                                       (9,126)                                   (5,066)                            (8,213)
                                                              ------                                    ------                             ------

    INCOME (LOSS) BEFORE INCOME
     TAXES                                                   (17,443)                                 (138,281)                            17,526

    INCOME TAX EXPENSE (BENEFIT)                               2,724                                   (48,112)                             6,695
                                                               -----                                   -------                              -----

    NET INCOME (LOSS)                                        (20,167)                                  (90,169)                            10,831
                                                             -------                                   -------                             ------
    Less: net income (loss)
     attributable to
     noncontrolling interest                                     (69)                                        8                               (105)
    NET INCOME ATTRIBUTABLE TO
     CONTROLLING INTEREST                                   $(20,098)                                 $(90,177)                           $10,936
                                                            ========                                  ========                            =======

    EARNINGS  PER SHARE - BASIC
    Net Income (loss)                                         $(0.17)                                   $(0.77)                             $0.09

    EARNINGS PER SHARE - DILUTED
    Net Income (loss)                                         $(0.17)                                   $(0.77)                             $0.09

    NUMBER OF COMMON SHARES USED
     IN COMPUTING EARNINGS PER
     SHARE
    Basic                                                118,503,732                               116,620,561                        118,109,214
    Diluted                                              118,503,732                               116,620,561                        119,201,019

                                                     PARKER DRILLING COMPANY
                                              Consolidated Statement Of Operations
                                          (Dollars in Thousands, Except Per Share Data)
                                                           (Unaudited)

                                   Year Ended December 31,
                                   -----------------------
                                                      2012                                     2011         2010
                                                      ----                                     ----         ----

    REVENUES:                                     $677,982                                 $686,646     $659,475

    EXPENSES:
    Operating Expenses                             414,064                                  418,144      471,278
    Depreciation and Amortization                  113,017                                  112,136      115,030
                                                                                            -------      -------
                                                   527,081                                  530,280      586,308
                                                   -------                                  -------      -------
    TOTAL OPERATING GROSS MARGIN                   150,901                                  156,366       73,167
                                                   -------                                  -------       ------

    General and Administrative
     Expense                                       (46,052)                                 (31,314)     (30,728)
    Impairment and other charges                         -                                 (170,000)           -
    Provision for Reduction in
     Carrying Value of Certain
     Assets                                              -                                   (1,350)      (1,952)
    Gain on Disposition of Assets,
     Net                                             1,974                                    3,659        4,620

    TOTAL OPERATING INCOME (LOSS)                  106,823                                  (42,639)      45,107
                                                   -------                                  -------       ------

    OTHER INCOME AND (EXPENSE):
    Interest Expense                               (33,542)                                 (22,594)     (26,805)
    Interest Income                                    153                                      256          257
    Loss on extinguishment of debt                  (2,130)                                       -       (7,209)
    Change in fair value of
     derivative positions                               55                                     (110)           -
    Other                                             (382)                                    (325)         155
    TOTAL OTHER EXPENSE                            (35,846)                                 (22,773)     (33,602)

    INCOME (LOSS) BEFORE INCOME
     TAXES                                          70,977                                  (65,412)      11,505
                                                    ------                                  -------       ------

    INCOME TAX EXPENSE (BENEFIT)                    33,879                                  (14,767)      26,213
                                                    ------                                  -------       ------

    NET INCOME (LOSS)                               37,098                                  (50,645)     (14,708)

    Less: net income (loss)
     attributable to
     noncontrolling interest                          (215)                                    (194)        (247)
    NET INCOME ATTRIBUTABLE TO
     CONTROLLING INTEREST                          $37,313                                 $(50,451)    $(14,461)
                                                   =======                                 ========     ========

    EARNINGS  PER SHARE - BASIC                      $0.32                                   $(0.43)      $(0.13)

    EARNINGS PER SHARE - DILUTED                     $0.31                                   $(0.43)      $(0.13)

    NUMBER OF COMMON SHARES USED
     IN COMPUTING
    EARNINGS PER SHARE:
    Basic                                      117,721,135                              116,081,590  114,258,965
    Diluted                                    119,093,590                              116,081,590  114,258,965

                                                                                  PARKER DRILLING COMPANY
                                                                                  Selected Financial Data
                                                                                   (Dollars in Thousands)
                                                                                        (Unaudited)

                                                               Three Months Ended                               Year Ended December 31,
                                                               ------------------                               -----------------------
                                                           December 31,                             September 30,
                                                                           2012                         2011                               2012      2012      2011      2010
                                                                           ----                         ----                               ----      ----      ----      ----

    REVENUES:
                            Rental Tools                                $55,666                      $63,871                            $59,947  $246,900  $237,068  $172,598
                            U.S. Barge Drilling                          29,404                       22,888                             33,142   123,672    93,763    64,543
                            U.S. Drilling                                 1,387                            -                                  -     1,387         -         -
                            International Drilling                       67,596                       89,229                             68,503   291,772   318,482   294,821
                            Technical Services                            3,134                        5,079                              3,709    14,251    27,695    36,423
                            Construction Contract                             -                            -                                  -         -     9,638    91,090
                              Total Revenues                            157,187                      181,067                            165,301   677,982   686,646   659,475

    OPERATING EXPENSES:
                            Rental Tools                                 22,823                       19,952                             21,879    88,884    74,491    60,036
                            U.S. Barge Drilling                          16,217                       16,503                             17,257    69,405    65,143    53,334
                            U.S. Drilling                                 5,897                          665                              2,641     9,538     1,692       217
                            International Drilling                       64,932                       65,664                             55,919   231,777   245,591   235,432
                            Technical Services                            3,253                        4,260                              3,788    14,460    22,360    31,371
                            Construction Contract                             -                            -                                  -         -     8,867    90,888
                              Total Operating Expenses                  113,122                      107,044                            101,484   414,064   418,144   471,278

    OPERATING GROSS MARGIN:
                            Rental Tools                                 32,843                       43,919                             38,068   158,016   162,577   112,562
                            U.S. Barge Drilling                          13,187                        6,385                             15,885    54,267    28,620    11,209
                            U.S. Drilling                                (4,510)                        (665)                            (2,641)   (8,151)   (1,692)     (217)
                            International Drilling                        2,664                       23,565                             12,584    59,995    72,891    59,389
                            Technical Services                             (119)                         819                                (79)     (209)    5,335     5,052
                            Construction Contract                             -                            -                                  -         -       771       202
                            Depreciation and Amortization               (27,660)                     (29,624)                           (29,779) (113,017) (112,136) (115,030)

                              Total Operating Gross Margin               16,405                       44,399                             34,038   150,901   156,366    73,167
                                                                                                                                             PARKER DRILLING COMPANY
                                                                                                                                                 Adjusted EBITDA
                                                                                                                                              (Dollars in Thousands)

                                                                                          Three Months Ended
                                                                                          ------------------
                                                             December 31, 2012           September 30, 2012           June 30, 2012                March 31, 2012             December 31, 2011           September 30, 2011          June 30, 2011          March 31, 2011
                                                             -----------------           ------------------           -------------                --------------             -----------------           ------------------          -------------          --------------

    Net Income (Loss) Attributable to Controlling
     Interest                                                                  $(20,098)                     $10,936                $20,083                          $26,392                    $(90,177)                    $20,725                $14,173                  $4,827
      Adjustments:
    Income Tax (Benefit) Expense                                                  2,724                        6,695                  9,817                           14,643                     (48,112)                     15,042                 13,464                   4,839
    Total Other Income and Expense                                                9,126                        8,213                 10,463                            8,044                       5,066                       6,268                  5,636                   5,803
    Gain on Disposition of Assets, Net                                              492                         (606)                (1,368)                            (492)                     (1,666)                       (623)                  (366)                 (1,004)
    Depreciation and Amortization                                                27,660                       29,779                 27,959                           27,619                      29,624                      27,581                 27,332                  27,599
    Impairment and other charges                                                      -                            -                      -                                -                     170,000                           -                      -                       -
    Provision for Reduction in Carrying Value of Certain
     Assets                                                                           -                            -                      -                                -                       1,350                           -                      -                       -
                                                                                    ---                          ---                    ---                              ---                       -----                         ---                                            ---

    Adjusted EBITDA                                                              19,904                       55,017                 66,954                           76,206                      66,085                      68,993                 60,239                  42,064
                                                                                 ======                       ======                 ======                           ======                      ======                      ======                 ======                  ======

    Adjustments:
         Non-routine Items*                                                      15,921                          564                     42                               23                         567                       1,517                  2,451                     685
                                                                                 ------                          ---                    ---                              ---                         ---                       -----                                            ---

    Adjusted EBITDA after Non-routine Items                                     $35,825                      $55,581                $66,996                          $76,229                     $66,652                     $70,510                $62,690                 $42,749
                                                                                =======                      =======                =======                          =======                     =======                     =======                =======                 =======

    * Amended to include comparable expenses in all periods.

                                                                                               PARKER DRILLING COMPANY
                                                                                        Reconciliation of Non-Routine Items *
                                                                                       (Dollars in Thousands, except Per Share)
                                                                                                     (Unaudited)

                                                                    Three Months Ending                                         Three Months Ending            Three Months Ending
                                                                     December 31, 2012                                           September 30, 2012             December 31, 2011
                                                                     -----------------                                           ------------------             -----------------

     Net income attributable to controlling interest                                              $(20,098)                                           $10,936                        $(90,177)
     Earnings per diluted share                                                                     $(0.17)                                             $0.09                          $(0.77)

     Adjustments:
                U.S. Department of Justice/Securities and Exchange
                 Commission proposed settlement                                                  $15,850                         $                        -   $                           -
                Impairment and other charges                                                           -                                                  -                         170,000
                Extinguishment of debt                                                               364                                                117                               -
                Provision for the reduction in carrying value                                          -                                                  -                           1,350
                U.S. regulatory investigations / legal matters**                                      71                                                564                             567
                          Total adjustments                                                       16,285                                                681                         171,917
                Tax effect of non-routine adjustments                                               (152)                                              (238)                        (61,546)

                          Net non-routine adjustments                                             16,133                                                443                         110,371

     Adjusted net income attributable to controlling
      interest                                                                                   $(3,965)                                           $11,379                         $20,194
                                                                                                 =======                                            =======                         =======
     Adjusted earnings per diluted share                                                          $(0.03)                                             $0.10                           $0.17
                                                                                                  ======                                              =====                           =====

                                                                       Year Ended                                                                                Year Ended
                                                                   December 31, 2012                                                                          December 31, 2011
                                                                   -----------------                                                                          -----------------

     Net income attributable to controlling interest                                             $37,313                                                                           $(50,451)
     Earnings per diluted share                                                                    $0.31                                                                             $(0.43)

     Adjustments:
                U.S. Department of Justice/Securities and Exchange
                 Commission proposed settlement                                                  $15,850                                                      $                           -
                Impairment and other charges                                                           -                                                                            170,000
                Extinguishment of debt                                                             2,130                                                                                  -
                Provision for the reduction in carrying value                                          -                                                                              1,350
                U.S. regulatory investigations / legal matters**                                     699                                                                              5,220
                          Total adjustments                                                       18,679                                                                            176,570
                Tax effect of non-routine adjustments                                               (990)                                                                           (63,175)

                          Net non-routine adjustments                                             17,689                                                                            113,395

     Adjusted net income attributable to controlling
      interest                                                                                   $55,002                                                                            $62,944
                                                                                                 =======                                                                            =======
     Adjusted earnings per diluted share                                                           $0.46                                                                              $0.54
                                                                                                   =====                                                                              =====
    *            Adjusted net
                 income, a
                 non-GAAP
                 financial
                 measure,
                 excludes
                 items that
                 management
                 believes are
                 of a non-
                 routine
                 nature and
                 which detract
                 from an
                 understanding
                 of normal
                 operating
                 performance
                 and
                 comparisons
                 with other
                 periods.
                 Management
                 also believes
                 that results
                 excluding
                 these items
                 are more
                 comparable to
                 estimates
                 provided by
                 securities
                 analysts and
                 used by them
                 in evaluating
                 the Company's
                 performance.

    **           Amended to
                 include
                 comparable
                 expenses in
                 all periods.

SOURCE Parker Drilling Company


Source: PR Newswire