Three Months Ended March 31, Twelve Months Ended December 31, 2015 2014 2014 2013 Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization
(Adjusted EBITDA)(1):
Net income
$
9,125
$
34,822
$
162,664
$
188,009
Income tax expense
6,720
16,942
91,619
108,432
Net interest expense
8,258
7,012
28,846
27,441
Depreciation, depletion, amortization and
impairment 175,382
147,322
718,730
597,469
Adjusted EBITDA
$
199,485
$
206,098
$1,001,859
$
921,351
Total revenue
$
657,699
$
678,168
$3,182,291
$2,716,034
Adjusted EBITDA margin
31.5%
33.9%
Adjusted EBITDA by operating segment:
Contract drilling
$
765,874
$
704,990
Pressure pumping
31,903
35,585
236,676
217,228
Oil and natural gas
3,702
8,730
37,094
44,348
Corporate and other
(11,090)
(11,413)
(37,785)
(45,215)
Consolidated Adjusted EBITDA
$
199,485
$
206,098
$1,001,859
$
921,351
(1)
The company makes use of financial measures that are not
calculated in accordance with U.S. generally accepted accounting principles (GAAP) to help in the assessment of ongoing operating performance. These non-GAAP financial measures are reconciled to their most directly
comparable GAAP measures in the tables above. We
define Adjusted EBITDA as net income plus net interest expense, income tax expense and depreciation, depletion, amortization and impairment expense. We present Adjusted EBITDA because we believe it provides additional information with respect to both the performance of
our fundamental business activities and our
ability to meet our capital expenditures and working capital requirements. Adjusted EBITDA is not defined by GAAP and, as such, should not be construed as an
alternative to net income (loss) or operating cash flow. We
define margin as revenues less direct operating costs. We present margin because we believe it to be the component of our earnings most impacted by the variability in our contract drilling and pressure pumping operations.
Margin is not defined by GAAP and, as such, should
not be construed as an alternative to net income (loss). PATTERSON-UTI
ENERGY, INC. Non-GAAP Financial Measures (Unaudited)
(dollars in thousands)
Non-GAAP Financial Measures
45
$
174,970
$
173,196
30.3%
30.4% |