HOUSTON, March 14, 2019 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported a net loss of approximately $52.2 million or $10.44 per share for the three months ended December 31, 2018 as compared to a net loss of $36.6 million or $7.33 per share for the three months ended December 31, 2017.

For the year ended December 31, 2018, Vantage reported a net loss of approximately $141.5 million or $28.29 per share as compared to a net loss of $149.8 million or $29.96 per share for the year ended December 31, 2017.

As of December 31, 2018, Vantage had approximately $239.4 million in cash, including $14.4 million of restricted cash, compared to $195.5 million in unrestricted cash and no restricted cash at December 31, 2017. The Company generated $12.8 million in cash from operations in 2018 compared to net cash used in operations of $19.9 million in 2017. During the three months ended December 31, 2018, the Company issued $350 million of new senior secured notes using proceeds to repay its first and second lien debt and to acquire the Soehanah jackup for $85.0, including transaction costs.

Ihab Toma, CEO, commented, “I am pleased to report that during another difficult year for the industry we accomplished our principal objectives for 2018. We refinanced two tranches of debt thereby extending maturities to 2023. We also acquired the Soehanah jackup, complementing our fleet of premium jackup rigs and, most importantly, continued to provide operational excellence to our clients while generating positive cash flow from operations.”

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of three ultra-deepwater drillships and five premium jackup drilling rigs. Vantage's primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells globally for major, national and independent oil and natural gas companies. Vantage also provides construction supervision services and preservation management services for, and will operate and manage, drilling units owned by others.

The information above includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements are subject to certain risks, uncertainties and assumptions identified above or as disclosed from time to time in the company's filings with the Securities and Exchange Commission. As a result of these factors, actual results may differ materially from those indicated or implied by such forward-looking statements. Vantage disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

Public & Investor Relations Contact:

     Thomas J. Cimino
     Chief Financial Officer
     Vantage Drilling International
     (281) 404-4700

 
Vantage Drilling International
Consolidated Statement of Operations
(In thousands, except per share data)
(Unaudited)
 
  Three Months Ended December 31,  Year Ended December 31, 
   2018   2017   2018   2017 
Revenue        
Contract drilling services $37,753  $52,881  $203,565  $190,553 
Management fees  308   307   1,220   1,456 
Reimbursables  5,006   6,650   20,962   20,837 
Total revenue  43,067   59,838   225,747   212,846 
Operating costs and expenses        
Operating costs  42,099   42,730   171,041   161,974 
General and administrative  6,609   11,719   29,544   41,648 
Depreciation  17,230   18,394   70,447   73,925 
Total operating costs and expenses  65,938   72,843   271,032   277,547 
Loss from operations  (22,871)  (13,005)  (45,285)  (64,701)
Other income (expense)        
Interest income  924   221   1,898   808 
Interest expense and other financing charges  (20,657)  (19,261)  (78,779)  (76,441)
Loss on debt extinguishment  (1,271)     (1,271)   
Other, net  (474)  520   (1,505)  2,807 
Bargain purchase gain           1,910 
Total other expense  (21,478)  (18,520)  (79,657)  (70,916)
Loss before income taxes  (44,349)  (31,525)  (124,942)  (135,617)
Income tax provision  7,828   5,101   16,526   14,168 
Net loss $(52,177) $(36,626) $(141,468) $(149,785)
Net loss per share, basic and diluted $(10.44) $(7.33) $(28.29) $(29.96)
Weighted average successor ordinary shares outstanding, basic and diluted  5,000   5,000   5,000   5,000 
 
Vantage Drilling International
Supplemental Operating Data
(Unaudited, in thousands, except percentages)
     
  Three Months Ended December 31,  Year Ended December 31, 
   2018   2017   2018   2017 
Operating costs and expenses        
Jackups $16,396  $19,623  $65,492  $72,279 
Deepwater  20,217   16,248   79,655   65,032 
Operations support  2,274   2,893   12,888   12,334 
Reimbursables  3,212   3,966   13,006   12,329 
  $42,099  $42,730  $171,041  $161,974 
         
Utilization        
Jackups  96.6%  99.5%  92.2%  82.0%
Deepwater  35.0%  45.4%  54.5%  36.2%
                 


 
Vantage Drilling International
Consolidated Balance Sheet
(In thousands, except share and par value information)
(Unaudited)
     
  December 31,
2018
 December 31,
2017
     
ASSETS    
Current assets    
Cash and cash equivalents $224,967  $195,455 
Restricted cash  10,362   - 
Trade receivables  28,431   45,379 
Inventory  45,195   43,955 
Prepaid expenses and other current assets  17,278   13,207 
Total current assets  326,233   297,996 
Property and equipment    
Property and equipment  996,139   904,584 
Accumulated depreciation  (208,836)  (141,393)
Property and equipment, net  787,303   763,191 
Other assets  16,026   21,935 
Total assets $1,129,562  $1,083,122 
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
Current liabilities    
Accounts payable $44,372  $39,666 
Accrued liabilities  17,983   25,117 
Current maturities of long-term debt     4,430 
Total current liabilities  62,355   69,213 
Long–term debt, net of discount and financing costs of $12,914 and $56,174  1,109,011   919,939 
Other long-term liabilities  22,889   17,195 
Commitments and contingencies    
Shareholders' equity    
Ordinary shares, $0.001 par value, 50 million shares authorized; 5,000,053 shares issued and outstanding  5   5 
Additional paid-in capital  373,972   373,972 
Accumulated deficit  (438,670)  (297,202)
Total shareholders' equity  (64,693)  76,775 
Total liabilities and shareholders’ equity $1,129,562  $1,083,122 
     


 
Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
     
  Year Ended December 31, 
   2018   2017 
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $(141,468) $(149,785)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Depreciation expense  70,447   73,925 
Amortization of debt financing costs  556   468 
Amortization of debt discount  49,417   48,925 
Amortization of contract value  6,311   4,686 
PIK interest on the Convertible Notes  7,648   7,604 
Share-based compensation expense  7,165   3,997 
Gain on bargain purchase     (1,910)
Non-cash loss on debt extinguishment  975    
Deferred income tax benefit  1,742   (1,964)
(Gain) loss on disposal of assets  (1,301)  335 
Changes in operating assets and liabilities:    
Trade receivables  16,948   (24,529)
Inventory  1,911   1,251 
Prepaid expenses and other current assets  (6,121)  1,267 
Other assets  2,339   2,638 
Accounts payable  4,706   4,383 
Accrued liabilities and other long-term liabilities  (8,481)  8,836 
Net cash provided by (used in) operating activities  12,794   (19,873)
CASH FLOWS FROM INVESTING ACTIVITIES    
Additions to property and equipment  (14,316)  (2,224)
Cash paid for Soehanah acquisition  (85,000)   
Cash paid for Vantage 260 acquisition     (13,000)
Net proceeds from sale of Vantage 260  4,703   255 
Net cash used in investing activities  (94,613)  (14,969)
CASH FLOWS FROM FINANCING ACTIVITIES    
Repayment of long-term debt  (216,265)  (1,430)
Proceeds from issuance of 9.25% First Lien Notes  350,000    
Debt issuance costs  (7,688)   
Debt prepayment costs  (296)   
Net cash provided by (used in) financing activities  125,751   (1,430)
Net increase (decrease) in cash and cash equivalents  43,932   (36,272)
Unrestricted and restricted cash and cash equivalents—beginning of period  195,455   231,727 
Unrestricted and restricted cash and cash equivalents—end of period $239,387  $195,455 
     

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