Bronco Drilling Company, Inc. Announces Third Quarter 2005 Results
07 November 2005 - 1:25PM
PR Newswire (US)
OKLAHOMA CITY, Nov. 7 /PRNewswire-FirstCall/ -- Bronco Drilling
Company, Inc., (Nasdaq/NM: BRNC), announced today financial results
for the three and nine months ended September 30, 2005. Revenues
for the third quarter were a record $18.6 million compared to $11.7
million for the previous quarter and $5.4 million for the third
quarter of 2004. Average operating rigs for the third quarter of
2005 grew to 15 from 12 for the previous quarter. The growth in
rigs is due to the refurbishment and deployment of two of the
Company's inventoried rigs during the third quarter of 2005 as well
as the acquisition of two operating rigs. Revenue days for the
quarter increased to 1,284 from 1,027 for the previous quarter and
from 786 for the third quarter of the previous year. Average daily
cash margins(1) for the quarter ended September 30, 2005 were
$5,945 compared to $4,648 for the previous quarter and $1,266 for
the third quarter of the previous year. The Company's fully diluted
earnings per share for the third quarter of 2005 was a loss of
$0.31. This number includes non-recurring charges related to the
Company's initial public offering and conversion from an LLC to a C
Corporation during the quarter that reduced earnings per share by
$0.46. Excluding these items, reported earnings per share would
have been $0.15. Weighted average shares outstanding on a fully
diluted basis were 16.3 million shares for the quarter. Frank
Harrison, Bronco Drilling's Chief Executive Officer, said "It's
been an exciting quarter, our first as a public company. Demand for
our rigs is strong and dayrates continue to trend upward. Our
refurbishment program is on schedule and we are excited about being
able to expand our refurbishment capacity to 10 rigs annually as a
result of our recent Thomas Drilling acquisition. The expansion
into the Barnett Shale with our recent acquisitions as well as the
deployment of two of our rigs to the Rocky Mountains contributes to
the geographic expansion we are seeking. We believe that our
expansion to these areas as well as the overall demand for our rigs
will translate into improving margins and strong results." Bronco
Drilling's management will host a conference call to discuss the
third quarter results on Monday November 7, 2005 at 11:00 a.m.
Eastern Time. To participate in the call, dial 866-362-5158 or
internationally dial 617-597-5397 using the participant code
85475851. Individuals interested in participating in the call
should call at least five minutes prior to the call. The conference
call will also be available via the Internet at
http://phx.corporate-ir.net/phoenix.zhtml?c=191804&p=irol-IRHome.
Please go to the website at least fifteen minutes prior to the call
to register, download and install any necessary software. For those
who cannot listen to the live call, a replay will be available
through November 21, 2005 at 888-286-8010 or internationally at
617-801-6888 using the passcode 75885835. Also, an archive of the
webcast will be available at the following link
http://phx.corporate-ir.net/phoenix.zhtml?c=191804&p=irol-IRHome
. Bronco Drilling Company, Inc., headquartered in Oklahoma City,
Oklahoma, is a provider of contract land drilling services to oil
and natural gas exploration and production companies. (1) Average
daily cash margin is equal to net income, the most directly
comparable GAAP financial measure, plus (minus) deferred tax
expense (benefit), plus (minus) other income (expense), plus
general and administrative expense and plus depreciation and
amortization. Although daily cash margin is not a measure of
financial performance recognized under generally accepted
accounting principles, the Company believes that it is a useful
measure used to evaluate financial performance. A reconciliation of
daily cash margin to net income is included below and may not be a
comparable measure to other similarly entitled measures reported by
other companies. Cautionary Note Regarding Forward-Looking
Statements The above statements include forward-looking statements
and are subject to risks and uncertainties. Forward-looking
statements give the Company's current expectations and projections
relating to its financial condition, results of operations, plans,
objectives, future performance and business. The statements can be
identified by the fact that they do not relate strictly to
historical or current facts. These statements may include words
such as "anticipate," "estimate," "expect," "project," "intend,"
"plan," "believe" and other words and terms of similar meaning in
connection with any discussion of the timing or nature of future
operating or financial performance or other events. All statements
other than statements of historical facts included in this release
that address activities, events or developments that we expect,
believe or anticipate will or may occur in the future are
forward-looking statements. These forward-looking statements are
largely based on our expectations and beliefs concerning future
events, which reflect estimates and assumptions made by the
Company's management. These estimates and assumptions reflect the
Company's best judgment based on currently known market conditions
and other factors relating to the Company's operations and business
environment, all of which are difficult to predict and many of
which are beyond its control. Although the Company believes its
estimates and assumptions to be reasonable, they are inherently
uncertain and involve a number of risks and uncertainties that are
beyond the Company's control. In addition, management's assumptions
about future events may prove to be inaccurate. Management cautions
all readers that the forward-looking statements contained in this
release are not guarantees of future performance, and the Company
cannot assure any reader that those statements will be realized or
the forward- looking events and circumstances will occur. Actual
results may differ materially from those anticipated or implied in
the forward-looking statements due to the factors listed in the
"Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" sections contained
in its filings with the Securities and Exchange Commission. All
forward-looking statements speak only as of the date of this
release. The Company does not intend to publicly update or revise
any forward-looking statements as a result of new information,
future events or otherwise, except as required by law. These
cautionary statements qualify all forward-looking statements
attributable to the Company or persons acting on its behalf. Bronco
Drilling Company and Subsidiaries CONSOLIDATED STATEMENTS OF
OPERATIONS (Amounts in thousands, except per share amounts) Three
Months Ended Nine Months Ended September 30, September 30, 2005
2004 2005 2004 (Unaudited) (Unaudited) REVENUES Contract drilling
revenues $18,640 $5,363 $38,875 $13,198 EXPENSES Contract drilling
11,007 4,368 23,880 11,272 Depreciation and amortization 2,003
1,040 4,854 2,593 General and administrative 5,647 395 6,767 1,124
18,657 5,803 35,501 14,989 Income (loss) from operations (17) (440)
3,374 (1,791) OTHER INCOME (EXPENSE) Interest expense (344) (82)
(652) (126) Loss from early extinguishment of debt (993) - (993) -
Interest income 192 1 203 6 Other 7 6 41 10 (1,138) (74) (1,401)
(109) Income (loss) before income taxes (1,155) (514) 1,973 (1,900)
Deferred tax expense (benefit) 3,919 (79) 3,688 (164) NET LOSS
$(5,074) $(435) $(1,715) $(1,736) Loss per common share-Basic
$(0.31) $(0.12) Loss per common share-Diluted $(0.31) $(0.12)
Weighted average number of shares outstanding-Basic 16,239 14,330
Weighted average number of shares outstanding-Diluted 16,285 14,346
PRO FORMA INFORMATION (unaudited): Historical loss from operations
before income taxes$ (1,155) $(514) $1,973 $(1,900) Pro forma
provision (benefit) for income taxes (435) (194) 744 (716) Pro
forma income (loss) from operations $(720) $(320) $1,229 $(1,184)
Pro forma income (loss) per common share-Basic $(0.04) $(0.02)
$0.09 $(0.09) Pro forma income (loss) per common share-Diluted
$(0.04) $(0.02) $0.09 $(0.09) Weighted average number of shares
outstanding-Basic 16,239 13,360 14,330 13,360 Weighted average
number of shares outstanding-Diluted 16,285 13,360 14,346 13,360
Three Months Ended Three Months Ended September 30, June 30, 2005
2004 2005 (Unaudited) (Unaudited) Reconciliation of average daily
cash margin to net income: Net income $(5,074) $(435) $2,529
Deferred tax expense (benefit) 3,919 (79) (116) Other income
(expense) 1,138 74 200 General and administrative 5,647 395 654
Depreciation and amortization 2,003 1,040 1,507 Drilling margin
7,633 995 4,774 Revenue days 1,284 786 1,027 Daily cash margin
$5,945 $1,266 $4,648 DATASOURCE: Bronco Drilling Company, Inc.
CONTACT: D. Frank Harrison, +1-405-242-4459, or Zachary M. Graves,
+1-405-242-4435, both of Bronco Drilling Company, Inc. Web site:
http://broncodrill.com/
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