Close

Form 8-K PARAGON OFFSHORE PLC For: Aug 12

FREE Breaking News Alerts from StreetInsider.com!

E-mail Address

StreetInsider.com Top Tickers, 4/24/2024

1. TSLA
2. ENPH
3. TXN
4. SPOT
5. V
6. BA
7. KMB
8. MSCI
9. STX
10. MSFT


August 12, 2015 4:16 PM EDT


 
 
 
 
 
 
 
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 
 
 
 
 
 
FORM 8-K
 
 
 
 
 
 
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (date of earliest event reported): August 12, 2015
 
 
 
 
 
 
PARAGON OFFSHORE plc
(Exact name of Registrant as specified in its charter)

 
 
 
 
 
 
 
 
 
 
 
 
England and Wales
 
001-36465
 
98-1146017
(State or other jurisdiction of
incorporation or organization)
 
(Commission
file number)
 
(I.R.S. employer
identification number)
 
 
 
 
3151 Briarpark Drive, Suite 700
Houston, Texas
 
77042
(Address of principal executive offices)
 
(Zip Code)
Registrant’s telephone number, including area code: + 1 832 783 4000
 
 
 
 
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



Item 2.02.    Results of Operation and Financial Condition.
On August 12, 2015, Paragon Offshore plc (the “Company”) issued a press release announcing its consolidated and combined financial results for the three and six months ended June 30, 2015. A copy of such press release is included as Exhibit 99.1 hereto and will be published on the Company’s web site at www.paragonoffshore.com.
Pursuant to the rules and regulations of the Securities and Exchange Commission, the press release is being furnished and shall not be deemed to be “filed” under the Securities Exchange Act of 1934.
 

Item 9.01.    Financial Statements and Exhibits.
 
(d)
Exhibits

Exhibit 99.1
Paragon Offshore plc Press Release dated August 12, 2015.



2


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
 
 
 
 
 
 
Paragon Offshore plc, a public limited company incorporated under the laws of England and Wales
 
 
 
 
Date:
August 12, 2015
 
 
 
 
 
 
 
 
 
 
 
By:
 
/s/ Steven A. Manz
 
 
 
Name:
 
Steven A. Manz
 
 
 
Title:
 
Senior Vice President and Chief Financial Officer


3


INDEX TO EXHIBITS

Exhibit No.
Description

99.1
Paragon Offshore plc Press Release dated August 12, 2015, announcing its consolidated and combined financial results for the three and six months ended June 30, 2015.            



4



EXHIBIT 99.1
 
Paragon Offshore plc
3151 Briarpark Drive
Suite 700
Houston, Texas 77042
 
 
 
PRESS RELEASE
PARAGON OFFSHORE REPORTS SECOND QUARTER 2015 RESULTS

HOUSTON, August 12, 2015 - Paragon Offshore plc (“Paragon”) (NYSE: PGN) today reported second quarter 2015 net income of $47.3 million, or $0.51 per diluted share as compared to second quarter 2014 net income of $95.0 million, or $1.12 per diluted share. Results for the quarter include a $4.1 million, or $0.04 per diluted share, loss on the sale of an asset and a $1.7 million, or $0.02 per diluted share, non-cash impairment charge related to assets which the company previously announced it had decided to retire from service. Excluding the above charges, Paragon’s adjusted net income (see Reconciliation of GAAP to Non-GAAP Financial Measures Table for a reconciliation to net income) was $53.1 million, or $0.57 per diluted share.

The results for the second quarter include a tax benefit of $18.5 million, as compared to a tax provision of $6.6 million in the first quarter of 2015, primarily as a result of restructuring certain of our operations. For periods prior to Paragon’s spin-off from Noble Corporation plc (“Noble”) on August 1, 2014 (the “Spin-Off”), results of operations are based on Noble’s standard-specification business (our "Predecessor") and include contributions from three standard specification rigs retained by Noble and three standard specification rigs that were sold prior to the Spin-Off. For more information regarding the Spin-Off, please see Paragon’s filings with the U.S. Securities and Exchange Commission (the “SEC”) available on the company’s website at www.paragonoffshore.com.

“Paragon’s second quarter 2015 results demonstrate our ongoing ability to deliver safe, reliable and efficient operations while controlling costs and securing additional backlog,” said Randall D. Stilley, President and Chief Executive Officer. “Furthermore, we secured $300 million of financing on Prospector 1 and Prospector 5 through the recently closed sale-leaseback transaction, enhancing our cash position and providing Paragon with significant optionality during the challenging days ahead.”

Total revenues for the second quarter of 2015 were $393.2 million compared to $430.6 million in the first quarter of 2015. Paragon reported utilization for its marketed rig fleet, which excludes one stacked floater, as 69 percent for the second quarter of 2015, as compared to 74 percent in the first quarter of 2015. Average daily revenues decreased three percent in the second quarter of 2015 to $149,000 per rig compared to the previous quarter average of $152,000 per rig. Contract drilling operating costs declined in the second quarter to $197.0 million compared to $225.1 million in the first quarter of 2015.

Net cash from operating activities was $96.6 million in the second quarter of 2015 as compared to $210.4 million for the first quarter of 2015. Capital expenditures in the second quarter totaled $62.4 million. At June 30, 2015, liquidity, defined as cash and cash equivalents plus availability under the company’s revolving credit facility, totaled $454.9 million while our leverage ratio, the ratio of the company’s net debt to trailing twelve months EBITDA, as defined in the company’s revolving credit facility, was 2.6 at June 30, 2015.

On July 24, 2015 the company closed a sale-leaseback transaction in connection with Prospector 1 and Prospector 5. Net of fees and expenses, the company received proceeds of approximately $292.0 million of which $23.0 million is required to be maintained in certain restricted accounts, leaving the company with available proceeds of approximately $269.0 million. The company’s cash and cash equivalents as of June 30, 2015 adjusted for the available funds from the sale-leaseback transaction plus availability under the company’s revolving credit facility, results in a pro forma liquidity of $723.9 million.
Operating Highlights
Paragon’s total contract backlog at June 30, 2015 was an estimated $1.6 billion compared to $1.9 billion at March 31, 2015.

5


Utilization of Paragon’s marketed floating rig fleet was 100 percent in the second quarter and in the first quarter of 2015. Average daily revenues for Paragon’s floating rig fleet decreased seven percent to $258,000 per rig in the second quarter of 2015 from $277,000 per rig in the first quarter of 2015.
Second quarter 2015 utilization of Paragon’s marketed jackup rig fleet decreased to 64 percent compared to the 71 percent utilization achieved during the first quarter of 2015. Average daily revenues for Paragon’s jackup fleet during the second quarter declined by two percent to $124,000 per rig from $127,000 per rig during the first quarter of 2015.
At the end of the second quarter of 2015, an estimated 57 percent of the marketed rig operating days were committed for 2015, including 87 percent and 52 percent of the floating and jackup rig days, respectively. The calculations for committed operating days exclude available days related to one floating unit that is stacked.

During the quarter, Paragon added approximately $89.9 million in backlog related primarily to previously disclosed new contracts and extensions in India, the Middle East and West Africa. In India, the Paragon MDS1 received a contract extension from mid-April 2015 to mid-August 2015 at a dayrate of $97,000. In the Middle East, the Paragon L784 received a contract award from early June 2015 to early June 2018, at a dayrate of $88,000 from early June 2015 to early June 2016 and $95,000 from early June 2016 to early June 2018. In West Africa, the Paragon M826 received a new contract from mid-August 2015 to mid-December 2015 at a dayrate of $105,000.
In addition, Paragon added approximately $200.0 million in backlog related to contracts and extensions announced in its July 13, 2015 and August 10, 2015 Fleet Status Reports. In the Middle East, the Paragon B152 received a contract extension from late November 2015 to late November 2017 at a rate of $81,000 while the Dhabi II received a contract extension from mid-July 2015 to mid-July 2017 at a dayrate of $76,000. In the North Sea, the Paragon C461 received a contract extension from mid-November 2015 to mid-November 2017 at a dayrate of $113,000. The Paragon C20051 received a contract extension from early December 2015 to late May 2016 at dayrates between $125,000 and $135,000. In addition, we agreed to a backlog swap between the Paragon C462 and Paragon C463 and received a contract extension from late December 2015 to early March 2016 on the Paragon C463 at a dayrate of $130,000.
Outlook
Mr. Stilley concluded, “As we anticipated, the offshore drilling environment has deteriorated further since the quarter ended and there is no improvement on the near-term horizon, particularly in the floating rig market segment where there is an oversupply of assets and very little demand. The shallow water segment has worsened as well and also faces supply challenges, though we see few speculative newbuild jackups coming to market and securing contracts. In fact, Paragon’s low-cost, high-quality focus has enabled us to win work in the few regions where there has been demand. Our cash position is strong and we continue to reduce costs aggressively as we do not expect a quick recovery in our markets.”
About Paragon Offshore
Paragon is a global provider of offshore drilling rigs. Paragon’s operated fleet includes 34 jackups, including two high specification heavy duty/harsh environment jackups, and six floaters (four drillships and two semisubmersibles). Paragon’s primary business is contracting its rigs, related equipment and work crews to conduct oil and gas drilling and workover operations for its exploration and production customers on a dayrate basis around the world. Paragon’s principal executive offices are located in Houston, Texas. Paragon is a public limited company registered in England and Wales with company number 08814042 and registered office at 20-22 Bedford Row, London, WC1R 4JS, England. Additional information is available at www.paragonoffshore.com.
Forward-Looking Disclosure Statement
This release contains forward-looking statements. Statements regarding contract backlog, earnings, costs, revenue, rig demand, fleet condition or performance, shareholder value, contract commitments, dayrates, contract commencements, contract extensions or renewals, industry fundamentals, customer relationships and requirements, strategic initiatives, future performance, growth opportunities, market outlook, as well as any other statements that are not historical facts in this release, are forward-looking statements that involve certain risks, uncertainties and assumptions. These include but are not limited to risks associated with the general nature of the oil and gas industry, risks associated with the operation of Paragon as a separate, publicly traded company, actions by regulatory authorities, customers and other third parties, and other factors detailed in the “Risk Factors” section of Paragon’s annual report on Form 10-K for the fiscal year ended December 31, 2014, and in Paragon’s other filings with the SEC, which are available free of charge on the SEC's website at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated.

6


Conference Call
Paragon also scheduled a teleconference and webcast related to its second quarter 2015 results on Thursday, August 13, 2015, at 8:00 a.m. U.S. Central Time. The teleconference can be accessed from the U.S. and Canada by dialing 1-888-771-4371, or internationally by dialing 1-847-585-4405, and using access code: 40293273. Interested parties may also listen to the webcast through a link posted on Paragon’s website at www.paragonoffshore.com, under “Events & Presentations” in the “Investor Relations” section of the website.
A telephonic replay of the conference call will be available on Thursday, August 13, 2015, beginning at approximately 12:00 p.m. U.S. Central Time, through Thursday, August 27, 2015, ending at approximately 11:00 p.m. U.S. Central Time. The phone number for the conference call replay is 1-888-843-7419 or, for calls from outside of the U.S., 1-630-652-3042, using access code: 40293273#.  A replay of the conference call will also be available on Paragon’s website at www.paragonoffshore.com, under “Events & Presentations” in the “Investor Relations” section of the website.
For additional information, contact:
For Investors
  
Lee M. Ahlstrom
& Media:
  
Senior Vice President – Investor Relations, Strategy and Planning
 
  
 +1.832.783.4040

7


PARAGON OFFSHORE plc
CONSOLIDATED AND COMBINED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
 
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2015
 
2014
 
2015
 
2014
Operating revenues
 
 
 
 
 
 
 
 
Contract drilling services
 
$
363,089

 
$
462,334

 
$
762,908

 
$
954,297

Labor contract drilling services
 
7,206

 
8,146

 
14,371

 
16,357

Reimbursables and other
 
22,949

 
8,477

 
46,613

 
22,893

 
 
393,244

 
478,957

 
823,892

 
993,547

Operating costs and expenses
 
 
 
 
 
 
 
 
Contract drilling services
 
196,969

 
222,317

 
422,074

 
448,780

Labor contract drilling services
 
5,681

 
6,223

 
11,294

 
12,436

Reimbursables
 
18,678

 
5,224

 
38,656

 
15,850

Depreciation and amortization
 
94,673

 
112,536

 
184,748

 
223,120

General and administrative
 
13,737

 
12,683

 
29,101

 
25,928

Loss on impairment
 
1,701

 
—

 
1,701

 
—

(Gain) loss on disposal of assets, net
 
4,078

 
—

 
(12,717
)
 
—

(Gain) on repurchase of long-term debt
 
—

 
—

 
(4,345
)
 
—

 
 
335,517

 
358,983

 
670,512

 
726,114

Operating income
 
57,727

 
119,974

 
153,380

 
267,433

Other income (expense)
 
 
 
 
 
 
 
 
Interest expense, net of amount capitalized
 
(29,042
)
 
(2,972
)
 
(59,237
)
 
(6,272
)
Interest income and other, net
 
169

 
338

 
2,434

 
525

Income before income taxes
 
28,854

 
117,340

 
96,577

 
261,686

Income tax benefit (provision)
 
18,477

 
(22,292
)
 
11,912

 
(42,075
)
Net income
 
$
47,331

 
$
95,048

 
$
108,489

 
$
219,611

Net income attributable to non-controlling interest
 
—

 
—

 
(31
)
 
—

Net income attributable to Paragon Offshore
 
$
47,331

 
$
95,048

 
$
108,458

 
$
219,611

 
 
 
 
 
 
 
 
 
Earnings per share
 
 
 
 
 
 
 
 
Basic and diluted
 
$
0.51

 
$
1.12

 
$
1.19

 
$
2.59



8


PARAGON OFFSHORE plc
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
 
 
 
June 30,
 
December 31,
 
 
2015
 
2014
ASSETS
 
 
 
 
Current assets
 
 
 
 
Cash and cash equivalents
 
$
112,359

 
$
56,772

Restricted cash
 
—

 
12,502

Accounts receivable, net of allowance for doubtful accounts
 
356,132

 
539,376

Prepaid and other current assets
 
99,531

 
104,644

Total current assets
 
568,022

 
713,294

 
 
 
 
 
Property and equipment, net
 
2,318,460

 
2,410,360

Other assets
 
138,365

 
129,735

Total assets
 
$
3,024,847

 
$
3,253,389

 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
Current liabilities
 
 
 
 
Current maturities of long-term debt
 
$
6,500

 
$
272,166

Accounts payable
 
131,370

 
160,874

Accrued payroll and related costs
 
50,868

 
81,416

Other current liabilities
 
160,545

 
207,838

Total current liabilities
 
349,283

 
722,294

 
 
 
 
 
Long-term debt
 
1,984,421

 
1,888,439

Deferred income taxes
 
39,034

 
58,497

Other liabilities
 
53,945

 
89,910

Total liabilities
 
2,426,683

 
2,759,140

 
 
 
 
 
Total shareholders’ equity
 
598,164

 
491,608

Non-controlling interest
 
—

 
2,641

Total equity
 
598,164

 
494,249

Total liabilities and equity
 
$
3,024,847

 
$
3,253,389



9


PARAGON OFFSHORE plc
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
 
 
Six Months Ended
 
 
June 30,
 
 
2015
 
2014
Cash flows from operating activities
 
 
 
 
Net income
 
$
108,489

 
$
219,611

Adjustments to reconcile net income to net cash from operating activities:
 
 
 
 
Depreciation and amortization
 
184,748

 
223,120

Loss on impairment
 
1,701

 
—

Gain on disposal of assets, net
 
(12,717
)
 
—

Gain on repurchase of long-term debt
 
(4,345
)
 
—

Other changes in operating activities
 
29,144

 
(37,043
)
Net cash provided by operating activities
 
307,020

 
405,688

 
 
 
 
 
Cash flows from investing activities
 
 
 
 
Capital expenditures
 
(113,071
)
 
(110,687
)
Proceeds from sale of assets
 
29,316

 
6,570

 Acquisition of Prospector Offshore Drilling S.A. non-controlling interest
 
(2,185
)
 
—

Change in restricted cash
 
12,502

 
—

Change in accrued capital expenditures
 
(12,533
)
 
13,594

Net cash used in investing activities
 
(85,971
)
 
(90,523
)
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
Net change in borrowings on Predecessor bank credit facilities
 
—

 
707,472

Net change in borrowings outstanding on Revolving Credit Facility
 
211,000

 
—

Repayment of Term Loan Facility
 
(3,250
)
 
—

Repayment of Prospector Senior Credit Facility
 
(265,666
)
 
—

Repayment of Prospector Bonds
 
(101,000
)
 
—

Purchase of Senior Notes
 
(6,546
)
 
—

 Debt issuance costs
 
—

 
(386
)
 Net transfers to parent
 
—

 
(1,026,144
)
Net cash used in financing activities
 
(165,462
)
 
(319,058
)
Net change in cash and cash equivalents
 
55,587

 
(3,893
)
Cash and cash equivalents, beginning of period
 
56,772

 
36,581

Cash and cash equivalents, end of period
 
$
112,359

 
$
32,688



10


PARAGON OFFSHORE plc
OPERATIONAL INFORMATION
(Unaudited)
 
 
 
As Reported
 
Rigs Retained or Sold by Noble
 
As Adjusted
 
 
Three Months Ended
 
Three Months Ended
 
Three Months Ended
 
 
June 30,
 
March 31,
 
June 30,
 
March 31,
 
June 30,
 
March 31,
 
 
2015
 
2014
 
2015
 
2015
 
2014
 
2015
 
2015
 
2014
 
2015
Rig fleet operating statistics (1)(2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jackups:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Rig Utilization
 
64
%
 
76
%
 
71
%
 
n/a
 
50
%
 
n/a
 
64
%
 
78
%
 
71
%
Marketed Utilization (3)
 
64
%
 
78
%
 
71
%
 
n/a
 
50
%
 
n/a
 
64
%
 
80
%
 
71
%
Operating Days
 
1,989

 
2,492

 
2,174

 
n/a
 
91

 
n/a
 
1,989

 
2,401

 
2,174

Average Dayrate
 
$
123,556

 
$
113,125

 
$
126,646

 
n/a
 
$
98,625

 
n/a
 
$
123,556

 
$
113,675

 
$
126,646

Floaters:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Rig Utilization
 
83
%
 
78
%
 
83
%
 
n/a
 
100
%
 
n/a
 
83
%
 
75
%
 
83
%
Marketed Utilization (3)
 
100
%
 
100
%
 
100
%
 
n/a
 
100
%
 
n/a
 
100
%
 
100
%
 
100
%
Operating Days
 
455

 
637

 
450

 
n/a
 
91

 
n/a
 
455

 
546

 
450

Average Dayrate
 
$
257,764

 
$
283,221

 
$
276,560

 
n/a
 
$
355,174

 
n/a
 
$
257,764

 
$
271,229

 
$
276,560

Total:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Rig Utilization
 
67
%
 
76
%
 
73
%
 
n/a
 
67
%
 
n/a
 
67
%
 
75
%
 
73
%
Marketed Utilization (3)
 
69
%
 
82
%
 
74
%
 
n/a
 
67
%
 
n/a
 
69
%
 
83
%
 
74
%
Operating Days
 
2,444

 
3,129

 
2,624

 
n/a
 
182

 
n/a
 
2,444

 
2,947

 
2,624

Average Dayrate
 
$
148,537

 
$
147,752

 
$
152,353

 
n/a
 
$
226,899

 
n/a
 
$
148,537

 
$
142,864

 
$
152,353

 
(1)
We define average rig utilization for a specific period as the total number of days our rigs are operating under contract, divided by the product of the total number of our rigs, including cold-stacked rigs, and the number of calendar days in such period. Information reflects our policy of reporting on the basis of the number of available rigs in our fleet.
(2)
Amounts exclude the Paragon FPSO1.
(3)
Marketed utilization excludes the impact of Paragon cold-stacked rigs for the current quarter.


11


PARAGON OFFSHORE plc
CALCULATION OF BASIC AND DILUTED EARNINGS PER SHARE
(In thousands, except per share amounts)
(Unaudited)
The following table sets forth the computation of basic and diluted net income and earnings per share:
 
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2015
 
2014
 
2015
 
2014
Allocation of net income
 
 
 
 
 
 
 
 
Basic and diluted
 
 
 
 
 
 
 
 
Net income attributable to Paragon Offshore
 
$
47,331

 
$
95,048

 
$
108,458

 
$
219,611

Earnings allocated to unvested share-based payment awards (1)
 
(3,532
)
 
—

 
(6,611
)
 
—

Net income to ordinary shareholders - basic and diluted
 
$
43,799

 
$
95,048

 
$
101,847

 
$
219,611

 
 
 
 
 
 
 
 
 
Weighted average number of shares outstanding - basic and diluted
 
85,836

 
84,753

 
85,549

 
84,753

 
 
 
 
 
 
 
 
 
Weighted average unvested share-based payment awards (1)
 
6,922

 
—

 
5,553

 
—

 
 
 
 
 
 
 
 
 
Earnings per share
 
 
 
 
 
 
 
 
Basic and diluted
 
$
0.51

 
$
1.12

 
$
1.19

 
$
2.59


(1)
Our basis of presentation related to weighted average unvested shares outstanding for all periods prior to the Spin-Off does not include our unvested restricted stock units that were granted to our employees in conjunction with Paragon’s 2014 Employee Omnibus Incentive Plan. As a result, we have no earnings allocated to unvested share-based payment awards in our earnings per share calculation for periods prior to the Spin-Off.
    

12


PARAGON OFFSHORE plc
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)
(Unaudited)
The following table sets forth the reconciliation of adjusted net income (non-GAAP) to net income:
 
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2015
 
2014
 
2015
 
2014
 
 
 
 
 
 
 
 
 
Net income attributable to Paragon Offshore
 
$
47,331

 
$
95,048

 
$
108,458

 
$
219,611

Adjustments:
 
 
 
 
 
 
 
 
(Gain) on repurchase of long-term debt
 
—

 
—

 
(4,345
)
 
—

(Gain) loss on disposal of assets, net
 
4,078

 
—

 
(12,717
)
 
—

Loss on impairment
 
1,701

 
—

 
1,701

 
 
Adjusted net income
 
$
53,110

 
$
95,048

 
$
93,097

 
$
219,611

 
 
 
 
 
 
 
 
 
Allocation of adjusted net income
 
 
 
 
 
 
 
 
Basic and diluted
 
 
 
 
 
 
 
 
Adjusted net income
 
$
53,110

 
$
95,048

 
$
93,097

 
$
219,611

Earnings allocated to unvested share-based payment awards (1)
 
(3,963
)
 
—

 
(5,675
)
 
—

Adjusted net income to ordinary shareholders - basic and diluted
 
$
49,147

 
$
95,048

 
$
87,422

 
$
219,611

 
 
 
 
 
 
 
 
 
Weighted average number of shares outstanding - basic and diluted
 
85,836

 
84,753

 
85,549

 
84,753

 
 
 
 
 
 
 
 
 
Weighted average unvested share-based payment awards (1)
 
6,922

 
—

 
5,553

 
—

 
 
 
 
 
 
 
 
 
Adjusted earnings per share
 
 
 
 
 
 
 
 
Basic and diluted
 
$
0.57

 
$
1.12

 
$
1.02

 
$
2.59


(1)
Our basis of presentation related to weighted average unvested shares outstanding for all periods prior to the Spin-Off does not include our unvested restricted stock units that were granted to our employees in conjunction with Paragon’s 2014 Employee Omnibus Incentive Plan. As a result, we have no earnings allocated to unvested share-based payment awards in our earnings per share calculation for periods prior to the Spin-Off.


13


PARAGON OFFSHORE plc
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Cont’d)
(In thousands)
(Unaudited) 
 
 
As Reported
 
Rigs Retained or Sold by Noble
 
As Adjusted
 
 
Three Months Ended
 
Three Months Ended
 
Three Months Ended
 
 
June 30,
 
March 31,
 
June 30,
 
March 31,
 
June 30,
 
March 31,
 
 
2015
 
2014
 
2015
 
2015
 
2014
 
2015
 
2015
 
2014
 
2015
Operating revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contract drilling services
 
$
363,089

 
$
462,334

 
$
399,819

 
n/a
 
$
41,302

 
n/a
 
$
363,089

 
$
421,032

 
$
399,819

Labor contract drilling services
 
7,206

 
8,146

 
7,165

 
n/a
 
1,079

 
n/a
 
7,206

 
7,067

 
7,165

Reimbursables and other
 
22,949

 
8,477

 
23,664

 
n/a
 
—

 
n/a
 
22,949

 
8,477

 
23,664

 
 
393,244

 
478,957

 
430,648

 
n/a
 
42,381

 
n/a
 
393,244

 
436,576

 
430,648

Operating costs and expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contract drilling services
 
196,969

 
222,317

 
225,105

 
n/a
 
16,966

 
n/a
 
196,969

 
205,351

 
225,105

Labor contract drilling services
 
5,681

 
6,223

 
5,613

 
n/a
 
—

 
n/a
 
5,681

 
6,223

 
5,613

Reimbursables
 
18,678

 
5,224

 
19,978

 
n/a
 
496

 
n/a
 
18,678

 
4,728

 
19,978

Depreciation and amortization
 
94,673

 
112,536

 
90,075

 
n/a
 
11,256

 
n/a
 
94,673

 
101,280

 
90,075

General and administrative
 
13,737

 
12,683

 
15,364

 
n/a
 
1,144

 
n/a
 
13,737

 
11,539

 
15,364

Loss on impairment
 
1,701

 
—

 
—

 
n/a
 
—

 
n/a
 
1,701

 
—

 
—

(Gain) loss on disposal of assets, net
 
4,078

 
—

 
(16,795
)
 
n/a
 
—

 
n/a
 
4,078

 
—

 
(16,795
)
(Gain) on repurchase of long-term debt
 
—

 
—

 
(4,345
)
 
n/a
 
—

 
n/a
 
—

 
—

 
(4,345
)
 
 
335,517

 
358,983

 
334,995

 
n/a
 
29,862

 
n/a
 
335,517

 
329,121

 
334,995

Operating income
 
57,727

 
119,974

 
95,653

 
n/a
 
12,519

 
n/a
 
57,727

 
107,455

 
95,653

Other income (expense)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net of amount capitalized
 
(29,042
)
 
(2,972
)
 
(30,195
)
 
n/a
 
—

 
n/a
 
(29,042
)
 
(2,972
)
 
(30,195
)
Interest income and other, net
 
169

 
338

 
2,265

 
n/a
 
—

 
n/a
 
169

 
338

 
2,265

Income before income taxes
 
28,854

 
117,340

 
67,723

 
n/a
 
12,519

 
n/a
 
28,854

 
104,821

 
67,723

Income tax benefit (provision)
 
18,477

 
(22,292
)
 
(6,565
)
 
n/a
 
(1,336
)
 
n/a
 
18,477

 
(20,956
)
 
(6,565
)
Net income
 
$
47,331

 
$
95,048

 
$
61,158

 
n/a
 
$
11,183

 
n/a
 
$
47,331

 
$
83,865

 
$
61,158

Net income attributable to non-controlling interests
 
—

 
—

 
(31
)
 
n/a
 
—

 
n/a
 
—

 
—

 
(31
)
Net income attributable to Paragon Offshore
 
$
47,331

 
$
95,048

 
$
61,127

 
n/a
 
$
11,183

 
n/a
 
$
47,331

 
$
83,865

 
$
61,127

Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Depreciation and amortization
 
 
 
 
 
 
 
 
 
 
 
 
 
94,673

 
101,280

 
90,075

 Loss on impairment
 
 
 
 
 
 
 
 
 
 
 
 
 
1,701

 
—

 
—

 (Gain) loss on disposal of assets, net
 
 
 
 
 
 
 
 
 
 
 
 
 
4,078

 
—

 
(16,795
)
 (Gain) on repurchase of long-term debt
 
 
 
 
 
 
 
 
 
 
 
 
 
—

 
—

 
(4,345
)
 Interest expense, net of amount capitalized
 
 
 
 
 
 
 
 
 
 
 
 
 
29,042

 
2,972

 
30,195

 Income tax (benefit) provision
 
 
 
 
 
 
 
 
 
 
 
 
 
(18,477
)
 
20,956

 
6,565

EBITDA
 
 
 
 
 
 
 
 
 
 
 
 
 
$
158,348

 
$
209,073

 
$
166,822


14

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

SEC Filings