Precision Drilling Corporation - first quarter results three months ended March 31, 2000
CALGARY, May 11 /CNW/ - Precision Drilling Corporation is pleased to
report record quarterly results for the three months ended March 31, 2000, as
follows:
FINANCIAL
CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS
Three Months Ended
March 31
CDN $000's, except per share amounts (unaudited) 2000 1999
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Revenue $ 384,400 $ 193,855
Expenses:
Operating 239,996 122,289
General and administrative 21,978 12,884
Depreciation 24,838 17,423
Research and engineering 3,741 -
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290,553 152,596
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Operating earnings 93,847 41,259
Interest 4,598 4,749
Gain on disposal of subsidiary - (23,607)
Reduction of carrying amounts of investments - 10,947
Reduction of carrying amounts of property, plant
and equipment - 10,200
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Earnings before income taxes and goodwill
amortization 89,249 38,970
Income taxes:
Current 7,032 51,726
Future 32,644 -
Deferred (reduction) - (25,535)
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39,676 26,191
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Earnings before goodwill amortization 49,573 12,779
Goodwill amortization, net of tax 4,282 3,722
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Net earnings 45,291 9,057
Retained earnings, beginning of period 280,872 246,622
Adjustment on adoption of liability method of
accounting for income taxes (70,032) -
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Retained earnings, end of period $ 256,131 $ 255,679
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Earnings per share before goodwill amortization:
Basic $ 1.05 $ 0.30
Fully diluted $ 0.98 $ 0.29
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Earnings per share:
Basic $ 0.96 $ 0.21
Fully diluted $ 0.90 $ 0.21
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Common shares outstanding (000's) 47,755 42,359
Weighted average shares outstanding (000's) 47,347 42,161
Fully diluted shares outstanding (000's) 51,406 45,491
CONSOLIDATED BALANCE SHEETS
March 31 December 31
CDN $000's 2000 1999
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(unaudited)
Assets
Current assets:
Cash $ 75,067 $ 5,550
Investment in short-term commercial paper - 46,775
Accounts receivable 323,691 239,088
Income taxes recoverable 7,586 3,531
Inventory 59,641 59,566
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465,985 354,510
Property, plant and equipment, at cost less
accumulated depreciation 762,443 761,589
Goodwill, net of accumulated amortization of
$42,359 (December 31, 1999 - $38,077) 300,118 304,400
Investments 7,052 7,399
Deferred financing costs, net of amortization
of $3,151 (December 31, 1999 - $2,852) 8,090 8,389
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$1,543,688 $1,436,287
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Liabilities and Shareholders' Equity
Current liabilities:
Bank indebtedness $ 361 $ 3,353
Accounts payable and accrued liabilities 152,421 129,766
Current portion of long-term debt 58,801 58,524
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211,583 191,643
Long-term debt 223,117 226,815
Deferred foreign exchange gain 1,631 2,421
Future income taxes 209,289 -
Deferred income taxes - 106,613
Shareholders' equity:
Share capital 641,937 627,923
Retained earnings 256,131 280,872
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898,068 908,795
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$1,543,688 $1,436,287
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Common shares outstanding (000's) 47,755 47,163
Common share purchase options outstanding (000's) 4,076 3,940
SEGMENT INFORMATION
The Corporation changed its method of reporting segmented information to
include the results of its well servicing operations in the Contract Drilling
Services segment as opposed to the Oilfield Specialty Services segment.
Comparative amounts have been adjusted to reflect this change.
Three months ended
March 31, 2000 Contract Oilfield Rental and
CDN $000's Drilling Specialty Production Corporate
(unaudited) Services Services Services and Other Total
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Revenue $ 231,294 $ 94,391 $ 58,715 $ - $ 384,400
Operating earnings 74,458 14,318 12,221 (7,150) 93,847
Depreciation 16,084 5,239 3,306 209 24,838
Assets 884,935 348,924 201,184 108,645 1,543,688
Capital
expenditures(x) 12,897 12,240 3,848 772 29,757
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Three months ended
March 31, 1999 Contract Oilfield Rental and
CDN $000's Drilling Specialty Production Corporate
(unaudited) Services Services Services and Other Total
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Revenue $ 137,953 $ 13,116 $ 42,714 $ 72 $ 193,855
Operating earnings 40,981 (948) 3,492 (2,266) 41,259
Depreciation 11,971 941 4,389 122 17,423
Assets 902,572 126,758 194,600 59,876 1,283,806
Capital
expenditures(x) 942 581 3,210 28 4,761
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(x) excludes acquisitions
OPERATING
Three months ended March 31
2000 1999
Market Market
Precision Industry Share % Precision Industry Share %
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Number of
drilling rigs 210 572(x) 37 214 556(x) 38
Number of
operating days
(spud to
release) 13,937 38,529 36 8,840 23,942 37
Wells drilled 1,592 4,404 36 888 2,591 34
Average days
per well 8.8 8.7 10.0 9.2
Metres drilled
(000's) 2,049 5,275 39 1,172 3,077 38
Average metres
per day 147 137 133 129
Average metres
per well 1,287 1,198 1,320 1,188
Rig utilization
rate (%) 73 74 46 48
(x) excludes coiled tubing and non-CAODC rigs
In addition, at March 31, the Corporation had 11 rigs engaged in
contracts internationally.
Precision Drilling Corporation is listed on the Toronto Stock Exchange
under the ticker symbol PD and on the New York Stock Exchange under the ticker
symbol PDS. |
