Pioneer Drilling Reports Fiscal Second Quarter 2008 Results
Pioneer Drilling reported net income of $11.8 million, or $0.23 per diluted share, for the three months ended September 30, 2007 compared with net income of $13.1 million, or $0.26 per diluted share, for the three months ended June 30, 2007 and net income of $23.5 million, or $0.47 per diluted share, for the three months ended September 30, 2006.
Revenues for the Second Quarter were $106.5 million compared with $102.8 million for the First Quarter and $106.9 million for the same quarter last year. The Second Quarter included the impact of an after-tax charge of $1.7 million due to a write-down related to an on-going customer bankruptcy. Costs for the Second Quarter were up over the previous quarter by approximately $3 million primarily due to the commencement of operations in Colombia, additional turnkey and footage contracts as well as slightly higher labor costs, as expected. As compared to the same quarter last year, costs increased by $10.8 million primarily due to the increase in the number of rigs in our fleet. Depreciation remained constant quarter over quarter at $16.1 million but increased $3.5 million over the second quarter ended September 30, 2006 primarily due to the additional number of rigs in our fleet.
EBITDA(1) for the Second Quarter was $33.4 million, down slightly from First Quarter results of $35.7 million, primarily due to the impact of the customer bankruptcy write-down. EBITDA for the second quarter of 2006 was $48.3 million. Cash flow from operations for the six months ended September 30, 2007 remained strong at $78.8 million compared to $67.3 million for the comparable period in 2006.
Wm. Stacy Locke, President and CEO, commented, "Our Second Quarter performance was solid despite the continued softness in the market and the attendant pressure on spot market dayrates. Utilization in the Second Quarter remained unchanged from the First Quarter. Additionally, we have adjusted to the market pressures by implementing steps to reduce our costs both generally and more quickly when rigs become inactive."
Mr. Locke continued, "We are pleased that our first two Colombian rigs have begun daywork operations, the first on September 21st and the second, just after Second Quarter end, on October 25th. The upgrade to the third rig we purchased for international expansion is just about complete and we expect to deploy it prior to the end of our fiscal year. While we are concentrating on a successful start to our international business in Colombia, we are continuing to explore other opportunities in the region."
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