Bronco Drilling Company, Inc. Announces Third Quarter Results.OKLAHOMA CITY Oklahoma City (1990 pop. 444,719), state capital, and seat of Oklahoma co., central Okla., on the North Canadian River; inc. 1890. The state's largest city, it is an important livestock market, a wholesale, distribution, industrial, and financial center, and a farm -- Bronco bronco: see mustang. Drilling Company, Inc., (Nasdaq/GM:BRNC BRNC Britannia Royal Naval College (Dartmouth, England) ), announced today financial and operational results for the three months ended September 30, 2008. Consolidated Results Revenues for the third quarter of 2008 were $73.0 million compared to $69.8 million for the second quarter of 2008 and $76.3 million for the third quarter of 2007. Net loss for the third quarter of 2008 was $0.9 million compared to net income of $4.3 million for the previous quarter and $11.1 million for the third quarter of 2007. The Company generated EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become of $12.9 million for the third quarter of 2008 compared to $20.6 million for the previous quarter and $28.3 million for the third quarter of 2007. The Company's fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the quarter ended September 30, 2008, were a loss of $0.03 based on 26.4 million shares. Results for the third quarter of 2008 were adversely affected by several non-recurring charges. These charges are primarily comprised of expenses related to the termination of the proposed merger with Allis-Chalmers Energy, Inc., the severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when of our Senior VP of Rig rig see cryptorchid. Operations and a large workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. claim. These items resulted in a pre-tax charge of approximately $9 million in the third quarter. Without these non-recurring charges, fully diluted earnings per share for the quarter would be $0.18. Land Drilling Average operating land rigs for the third quarter of 2008 were 42 compared to 45 for the previous quarter and 53 for the third quarter of 2007. The decrease from the previous quarter is due to rigs being winterized and refurbished for deployment to the Bakken Shale and rigs refurbished for deployment to Mexico. Revenue days for the quarter decreased to 3,208 from 3,355 for the previous quarter and decreased from 3,739 for the third quarter of 2007. Utilization for the third quarter of 2008 was 84% compared to 82% for the previous quarter and 76% for the third quarter of 2007. Average daily cash margins for our land drilling fleet for the quarter ended September 30, 2008, were $7,582 compared to $7,088 for the previous quarter and $8,373 for the third quarter of 2007. Well Servicing Average operating workover rigs for the third quarter of 2008 were 54 compared to 53 for the previous quarter and 35 for the third quarter of 2007. Revenue hours for the quarter decreased to 25,401 from 25,533 for the previous quarter and increased from 17,184 for the third quarter of 2007. Utilization for the third quarter of 2008 was 73% compared to 75% for the previous quarter and 78% for the third quarter of 2007. Average hourly cash margins for our well servicing fleet for the quarter ended September 30, 2008, were $50 compared to $127 for the previous quarter and $111 for the third quarter of 2007. About Bronco Drilling Bronco Drilling Company, Inc., a publicly held company headquartered in Edmond, Oklahoma Edmond is a rapidly growing suburban city in Oklahoma County, Oklahoma in the central part of the state. It is the sixth largest city in the state of Oklahoma and is part of the Greater Oklahoma City metropolitan area. , is a provider of contract land drilling services and workover services to oil and natural gas exploration and production companies. Bronco's common stock is quoted on The Nasdaq Global Market under the symbol "BRNC." For more information about Bronco Drilling Company, Inc., visit http://www.broncodrill.com. [TABLE OMITTED] [TABLE OMITTED] Non-GAAP Financial Measures This press release includes a presentation of average daily cash margin for our land drilling fleet, average hourly cash margin for our well servicing fleet and EBITDA which are not financial measures recognized under generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , or GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . Average daily cash margin is a non-GAAP financial measure equal to net income, the most directly comparable GAAP financial measure, minus well service revenue, plus well service expense, income tax expense, other expense, general and administrative expense and depreciation and amortization, and divided by revenue days for the period. Average hourly cash margin is a non-GAAP financial measure equal to net income, the most directly comparable GAAP financial measure, minus contract drilling revenue, plus contract drilling expense, income tax expense, other expense, general and administrative expense and depreciation and amortization, and divided by revenue hours for the period. EBITDA is a non-GAAP financial measure equal to net income, the most directly comparable GAAP financial measure, plus interest expense, income tax expense and depreciation and amortization. We have presented average daily cash margin, average hourly cash margin and EBITDA because we use these metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. as an integral part of our internal reporting to measure our performance and to evaluate the performance of our senior management. We consider these metrics to be important indicators of the operational strength of our business. A limitation of these metrics, however, is that they do not reflect the periodic costs of certain capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. tangible and intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. used in generating revenues in our business. Management evaluates the costs of such tangible and intangible assets and the impact of related impairments through other financial measures, such as capital expenditures, investment spending and return on capital. Therefore, we believe that average daily cash margin, average hourly cash margin and EBITDA provide useful information to our investors regarding our performance and overall results of operations. Neither average daily cash margin, average hourly cash margin nor EBITDA is intended to be a performance measure that should be regarded as an alternative to, or more meaningful than, either net income as an indicator of operating performance or to cash flows from operating activities as a measure of liquidity. In addition, none of these metrics is intended to represent funds available for dividends, reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. or other discretionary uses, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP. These non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies, and may not be identical to corresponding measures used in our various agreements. The following presents a reconciliation of average daily cash margin and EBITDA to net income, the most directly comparable GAAP financial measure (in thousands, except revenue days and average daily cash margin): [TABLE OMITTED] [TABLE OMITTED] |
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