Pioneer Drilling Reports Fiscal First Quarter Results
First quarter revenues were up 70 percent First quarter net income was $0.01 per diluted share
Aug 4, 2004
AUGUST 4, 2004 – SAN ANTONIO, TEXAS – Pioneer Drilling Company (AMEX: PDC) today reported results for the three months ended June 30, 2004.
Revenues for the first quarter of fiscal 2005 were $40.7 million, compared to revenues of $23.9 million in the first quarter of 2004. Net earnings in the first quarter of 2005 were $217,000, or $0.01 per diluted share, versus a net loss of $1.1 million, or $0.05 loss per share, during the first quarter of 2004.
There were 2,997 revenue days during the first quarter of fiscal 2005, compared to 1,958 revenue days for the first quarter of fiscal 2004. Average rig utilization for the first quarter was 93 percent, up from 87 percent in the corresponding period last year.
Wm. Stacy Locke, Pioneer’s President and Chief Executive Officer, stated, “We experienced a solid quarter, while battling weather in all three of our markets in Texas and lower than anticipated earnings contribution from turnkey operations. Overall, operating income per revenue day from turnkey projects remained positive and, in fact, was higher than operating income per revenue day from daywork projects. However, turnkey operations were not as profitable in the fiscal first quarter as we had experienced throughout fiscal 2004. We are pleased with this utilization rate of 93%, a level we haven’t seen since 2001 when we had less than 20 land rigs in our fleet. Now that our fleet has grown to 36 rigs and our customer demand is quite strong, we expect to benefit from the operating leverage of these additional rigs as utilization is high and dayrates appear to be continuing to increase.”
Pioneer Drilling’s management team will be holding a conference call on Thursday, August 5, 2004, at 9:30 a.m., Eastern time. To participate in the call, dial (303) 262-2143 at least ten minutes before the conference call begins and ask for the Pioneer Drilling conference call. A replay of the call will be available approximately two hours after the call ends and will be accessible until August 12, 2004. To access the replay, dial (303) 590-3000 and enter the pass code 11004875#.
Investors, analysts and the general public will also have the opportunity to listen to the conference call over the Internet by accessing Pioneer Drilling’s Web site at http://www.pioneerdrlg.com. To listen to the live call on the Web, please visit Pioneer Drilling’s Web site at least fifteen minutes early to register, download and install any necessary audio software. For those who cannot listen to the live Web cast, an archive will be available shortly after the call. For more information, please contact Karen Roan at DRG&E at (713) 529-6600 or email kcroan@drg-e.com.
Pioneer Drilling Company provides land contract drilling services to independent and major oil and gas operators drilling wells in North, East and South Texas and North Louisiana. Pioneer’s fleet consists of 36 land drilling rigs that drill in depth ranges between 8,000 and 18,000 feet. This press release contains various forward-looking statements and information that are based on management’s belief, as well as assumptions made by and information currently available to management. Forward-looking information includes statements regarding the expected benefits from the operating leverage of Pioneer Drilling’s additional rigs and the continuing increases in dayrates. Although the management of Pioneer Drilling believes that the expectations reflected in such forward-looking statements are reasonable, Pioneer Drilling can give no assurance that those expectations will prove to have been correct. Such statements are subject to various risks, uncertainties and assumptions, including, among other matters, risks and uncertainties relating to turnkey drilling contracts in progress. Should one or more of those risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. These risks, as well as others, are discussed in greater detail in the Company’s filings with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K for the fiscal year ended March 31, 2004.
PIONEER DRILLING COMPANY AND SUBSIDIARIES Statements of Operations (Unaudited) Three Months Ended 6/30/04 6/30/03 Revenues: Contract drilling $40,718,811 $23,850,083 Costs and Expenses: Contract drilling 33,854,370 20,366,406 Depreciation and amortization 5,048,317 3,624,181 General and administrative 770,141 648,248 Total operating costs 39,672,828 24,638,835 Operating income (loss) 1,045,983 (788,752) Other income (expense): Interest expense (718,232) (733,655) Interest income 23,837 47,690 Other 3,389 8,947 Total other (691,006) (677,018) Income (loss) before taxes 354,977 (1,465,770) Income tax benefit (expense) (138,449) 409,469 Net earnings (loss) $216,528 $(1,056,301) Earnings (loss) per share: Basic $0.01 $(0.05) Diluted $0.01 $(0.05) Weighted average number of shares outstanding: Basic 27,300,126 21,707,935 Diluted 28,273,561 21,707,935 Operating statistics: Average number of rigs 35.3 24.6 Utilization rate 93% 87% Revenue days 2,997 1,958 Drilling revenue/revenue day $13,587 $12,181 Drilling cost/revenue day $11,296 $10,402 Capital expenditures: Rig additions $2,614,051 $5,416,693 Other $5,801,471 $1,512,857 $8,415,522 $6,929,550 PIONEER DRILLING COMPANY AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) 6/30/2004 3/31/2004 Assets Current assets: Cash and cash equivalents $5,919,748 $6,365,759 Receivables, net 12,571,346 10,901,991 Contract drilling in progress 10,461,223 9,130,794 Current deferred income taxes 271,844 285,384 Prepaid expenses 972,149 1,336,337 Total current assets 30,196,310 28,020,265 Net property, plant and equipment 118,543,601 115,341,612 Other assets 354,819 369,278 Total assets $149,094,730 $143,731,155 Liabilities and Equity Current liabilities: Notes payable $223,967 $558,070 Current long-term debt 3,860,183 3,865,236 Accounts payable 17,773,694 13,270,989 Accrued expenses 6,087,083 4,297,952 Total current liabilities 27,944,927 21,992,247 Long-term debt 43,931,131 44,891,674 Deferred taxes 6,165,825 6,010,916 Total liabilities 78,041,883 72,894,837 Total shareholders' equity 71,052,847 70,836,318 $149,094,730 $143,731,155
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