UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended December 31, 2003 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number 001-08182
PIONEER DRILLING COMPANY
(Exact name of registrant as specified in its charter)
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TEXAS |
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74-2088619 |
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(State or other jurisdiction |
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(I.R.S. Employer |
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9310 Broadway, Bldg. 1, San Antonio, Texas |
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78217 |
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(Address of principal executive offices) |
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(Zip Code) |
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210-828-7689 |
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(Registrant’s telephone number, including area code) |
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(Former name, address and former fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yeso Noý
As of February 5, 2004, there were 22,211,792 shares of common stock, par value $0.10 per share, of the registrant issued and outstanding.
PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
PIONEER DRILLING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
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(Unaudited) |
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March 31, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
2,829,960 |
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$ |
21,002,913 |
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Receivables, net |
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11,207,898 |
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4,499,378 |
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Contract drilling in progress |
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3,678,962 |
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4,429,545 |
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Federal income tax receivable |
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— |
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444,900 |
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Current deferred income taxes |
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132,031 |
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180,991 |
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Prepaid expenses |
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1,620,711 |
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914,187 |
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Total current assets |
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19,469,562 |
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31,471,914 |
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Property and equipment, at cost |
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133,156,735 |
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110,223,230 |
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Less accumulated depreciation |
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32,763,264 |
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22,367,327 |
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Net property and equipment |
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100,393,471 |
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87,855,903 |
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Other assets |
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345,958 |
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366,500 |
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Total assets |
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$ |
120,208,991 |
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$ |
119,694,317 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities: |
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Notes payable |
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$ |
889,970 |
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$ |
587,177 |
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Current installments of long-term debt and capital lease obligations |
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3,609,884 |
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2,811,986 |
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Accounts payable |
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14,071,461 |
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14,206,586 |
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Accrued payroll |
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1,810,723 |
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847,163 |
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Accrued expenses |
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2,507,596 |
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1,874,693 |
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Total current liabilities |
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22,889,634 |
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20,327,605 |
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Long-term debt and capital lease obligations, less current installments |
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44,023,163 |
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45,854,542 |
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Deferred income taxes |
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5,614,993 |
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5,839,908 |
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Total liabilities |
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72,527,790 |
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72,022,055 |
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Shareholders’ equity: |
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Preferred stock, 10,000,000 shares authorized; none issued and outstanding |
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— |
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— |
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Common stock, $.10 par value, 100,000,000 shares authorized; 22,211,792 and 21,700,792 shares issued at December 31, 2003 and March 31, 2003, respectively |
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2,221,179 |
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2,170,079 |
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Additional paid-in capital |
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59,887,077 |
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57,730,188 |
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Accumulated deficit |
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(14,427,055 |
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(12,228,005 |
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Total shareholders’ equity |
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47,681,201 |
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47,672,262 |
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Total liabilities and shareholders’ equity |
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$ |
120,208,991 |
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$ |
119,694,317 |
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See accompanying notes to condensed consolidated financial statements.
2
PIONEER DRILLING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
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Three
Months Ended |
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Nine
Months Ended |
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2003 |
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2002 |
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2003 |
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2002 |
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Revenues: |
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Contract drilling |
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$ |
26,414,362 |
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$ |
19,795,727 |
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$ |
74,508,827 |
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$ |
55,289,179 |
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Other |
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25,184 |
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12,310 |
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65,056 |
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34,743 |
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Total operating revenues |
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26,439,546 |
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19,808,037 |
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74,573,883 |
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55,323,922 |
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Costs and expenses: |
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Contract drilling |
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21,599,719 |
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18,076,564 |
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61,757,266 |
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47,918,096 |
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Depreciation and amortization |
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4,118,811 |
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3,006,185 |
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11,670,538 |
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8,521,830 |
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General and administrative |
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687,286 |
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552,714 |
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2,027,132 |
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1,677,622 |
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Bad debt expense |
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— |
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— |
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110,000 |
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Total operating costs and expenses |
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26,405,816 |
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21,635,463 |
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75,454,936 |
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58,227,548 |
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Earnings (loss) from operations |
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33,730 |
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(1,827,426 |
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(881,053 |
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(2,903,626 |
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Other income (expense): |
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Interest expense |
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(683,496 |
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(673,194 |
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(2,117,226 |
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(1,900,116 |
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Interest income |
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10,358 |
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19,516 |
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86,776 |
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72,912 |
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Gain on sale of marketable securities |
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203,887 |
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Total other income (expense) |
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(673,138 |
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(653,678 |
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(2,030,450 |
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(1,623,317 |
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Loss before income taxes |
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(639,408 |
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(2,481,104 |
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(2,911,503 |
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