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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