HOUSTON, TX--(Marketwire - Mar 15, 2012) - Vantage Drilling Company ("Vantage") (
Net loss for the fiscal year ended December 31, 2011 was $54.8 million or ($0.19) per share excluding approximately $25.2 million of charges for the early retirement of debt as compared to a loss of $19.8 million or ($0.08) per share in the prior year period, excluding approximately $27.8 million of acquisition and refinancing charges. Including the acquisition and refinancing charges, Vantage reported a net loss $80.0 million or ($0.28) per diluted share for the year ended December 31, 2011 as compared to a net loss of $47.6 million or $(0.19) per diluted share for the year ended December 31, 2010.
Paul Bragg, Chairman and Chief Executive Officer, commented, "We are very pleased to announce record annual revenues and income from operations. Vantage continues to deliver operational excellence. Our jackup fleet had outstanding productive time for the year in excess of 99% and the Platinum Explorer completed its initial year of operations with productive time in excess of 92%. Market conditions are improving, particularly for new, modern rigs like ours."
Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with an owned fleet of four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs and the ultra-deepwater drillship, the Platinum Explorer, as well as an additional ultra-deepwater drillship, the Tungsten Explorer, now under construction. 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. Vantage also provides construction supervision services for, and will operate and manage, drilling units owned by others. Through its fleet of seven owned and managed drilling units, Vantage is a provider of offshore contract drilling services globally to major, national and large independent oil and natural gas companies.
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 Drilling Company | ||||||||||
| Consolidated Statement of Operations | ||||||||||
| (In thousands, except per share amounts) | ||||||||||
| (Unaudited) | ||||||||||
| Three Months Ended December 31, | ||||||||||
| 2011 | 2010 | |||||||||
| Revenues | ||||||||||
| Contract drilling services | $ | 91,961 | $ | 45,881 | ||||||
| Management fees | 3,228 | 4,717 | ||||||||
| Reimbursables | 26,111 | 34,294 | ||||||||
| Total revenues | 121,300 | 84,892 | ||||||||
| Operating costs and expenses | ||||||||||
| Operating costs, excluding impairment and termination costs | 72,175 | 63,441 | ||||||||
| General and administrative | 5,849 | 6,016 | ||||||||
| Depreciation | 16,352 | 8,773 | ||||||||
| Total operating expenses | 94,376 | 78,230 | ||||||||
| Income from operations | 26,924 | 6,662 | ||||||||
| Other income (expense) | ||||||||||
| Interest income | 29 | 166 | ||||||||
| Interest expense | (36,931 | ) | (14,219 | ) | ||||||
| Other income | (589 | ) | (58 | ) | ||||||
| Total other expense | (37,491 | ) | (14,111 | ) | ||||||
| Loss before income taxes | (10,567 | ) | (7,449 | ) | ||||||
| Income tax provision (benefit) | (1,221 | ) | 5,516 | |||||||
| Net loss | $ | (9,346 | ) | $ | (12,965 | ) | ||||
| Earnings (loss) per share | ||||||||||
| Basic | $ | (0.03 | ) | $ | (0.05 | ) | ||||
| Diluted | $ | (0.03 | ) | $ | (0.05 | ) | ||||
| Vantage Drilling Company | ||||||||||||||
| Consolidated Statement of Operations | ||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||
| Year Ended December 31, | ||||||||||||||
| 2011 | 2010 | 2009 | ||||||||||||
| Revenues | ||||||||||||||
| Contract drilling services | $ | 366,363 | $ | 178,514 | $ | 69,919 | ||||||||
| Management fees | 13,727 | 18,107 | 18,830 | |||||||||||
| Reimbursables | 105,258 | 81,782 | 22,744 | |||||||||||
| Total revenues | 485,348 | 278,403 | 111,493 | |||||||||||
| Operating costs and expenses | ||||||||||||||
| Operating costs | 284,400 | 176,387 | 66,228 | |||||||||||
| General and administrative | 26,317 | 21,719 | 15,690 | |||||||||||
| Depreciation | 64,477 | 33,384 | 11,218 | |||||||||||
| Total operating expenses | 375,194 | 231,490 | 93,136 | |||||||||||
| Income from operations | 110,154 | 46,913 | 18,357 | |||||||||||
| Other income (expense) | ||||||||||||||
| Interest income | 96 | 562 | 23 | |||||||||||
| Interest expense and financing charges | (154,897 | ) | (49,827 | ) | (8,178 | ) | ||||||||
| Loss on debt extinguishment | (25,196 | ) | (24,006 | ) | - | |||||||||
| Loss on acquisition of subsidiary | - | (3,780 | ) | - | ||||||||||
| Other income | 1,324 | 1,510 | 609 | |||||||||||
| Total other expense | (178,673 | ) | (75,541 | ) | (7,546 | ) | ||||||||
| Income (loss) before income taxes | (68,519 | ) | (28,628 | ) | 10,811 | |||||||||
| Income tax provision | 11,432 | 18,951 | 1,972 | |||||||||||
| Net income (loss) | $ | (79,951 | ) | $ | (47,579 | ) | $ | 8,839 | ||||||
| Earnings (loss) per share | ||||||||||||||
| Basic | $ | (0.28 | ) | $ | (0.19 | ) | $ | 0.07 | ||||||
| Diluted | $ | (0.28 | ) | $ | (0.19 | ) | $ | 0.07 | ||||||
| Vantage Drilling Company | ||||||||||
| Consolidated Balance Sheet | ||||||||||
| (In thousands, except par value information) | ||||||||||
| December 31, | ||||||||||
| 2011 | 2010 | |||||||||
| ASSETS | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | $ | 110,031 | $ | 120,443 | ||||||
| Restricted cash | 7,028 | 29,004 | ||||||||
| Trade receivables | 100,908 | 50,190 | ||||||||
| Inventory | 24,376 | 19,760 | ||||||||
| Prepaid expenses and other current assets | 16,909 | 11,472 | ||||||||
| Total current assets | 259,252 | 230,869 | ||||||||
| Property and equipment | ||||||||||
| Property and equipment | 1,913,596 | 1,762,844 | ||||||||
| Accumulated depreciation | (108,521 | ) | (44,712 | ) | ||||||
| Property and equipment, net | 1,805,075 | 1,718,132 | ||||||||
| Other assets | ||||||||||
| Other assets | 58,173 | 54,193 | ||||||||
| Total other assets | 58,173 | 54,193 | ||||||||
| Total assets | $ | 2,122,500 | $ | 2,003,194 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
| Current liabilities | ||||||||||
| Accounts payable | $ | 46,362 | $ | 32,332 | ||||||
| Accrued liabilities | 103,809 | 83,733 | ||||||||
| Total current liabilities | 150,171 | 116,065 | ||||||||
| Long-term debt, net of discount of $38,572 and $63,654 | 1,246,428 | 1,103,480 | ||||||||
| Other long-term liabilities | 29,755 | 13,498 | ||||||||
| Commitments and contingencies | - | - | ||||||||
| Shareholders' equity | ||||||||||
| Preferred shares, $0.001 par value, 10,000 shares authorized; none issued or outstanding | - | - | ||||||||
| Ordinary shares, $0.001 par value, 400,000 shares authorized; 291,241 and 289,713 shares issued and outstanding | 291 | 290 | ||||||||
| Additional paid-in capital | 860,502 | 854,557 | ||||||||
| Accumulated deficit | (164,647 | ) | (84,696 | ) | ||||||
| Total shareholders' equity | 696,146 | 770,151 | ||||||||
| Total liabilities and shareholders' equity | $ | 2,122,500 | $ | 2,003,194 | ||||||
| Vantage Drilling Company | ||||||||||||||
| Consolidated Statement of Cash Flows | ||||||||||||||
| (In thousands) | ||||||||||||||
| Year Ended December 31, | ||||||||||||||
| 2011 | 2010 | 2009 | ||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||
| Net income (loss) | $ | (79,951 | ) | $ | (47,579 | ) | $ | 8,839 | ||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||||
| Depreciation expense | 64,477 | 33,384 | 11,218 | |||||||||||
| Amortization of debt financing costs | 8,653 | 5,389 | 1,486 | |||||||||||
| Non-cash loss on debt extinguishment | 3,532 | 12,280 | - | |||||||||||
| Non-cash loss on acquisition of subsidiary | - | 3,780 | - | |||||||||||
| Share-based compensation expense | 5,946 | 6,141 | 5,030 | |||||||||||
| Accretion of long-term debt | 2,582 | 5,495 | 1,638 | |||||||||||
| Amortization of debt discount | 9,332 | 5,592 | 29 | |||||||||||
| Deferred income tax expense (benefit) | (3,984 | ) | 1,492 | 746 | ||||||||||
| Loss on disposal of assets | 226 | - | - | |||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||
| Restricted cash | 21,977 | (142 | ) | (27,163 | ) | |||||||||
| Trade receivables | (50,719 | ) | (40,791 | ) | (14,350 | ) | ||||||||
| Inventory | (4,616 | ) | (8,971 | ) | (10,789 | ) | ||||||||
| Prepaid expenses and other current assets | (1,549 | ) | (3,433 | ) | (5,963 | ) | ||||||||
| Other assets | (3,069 | ) | (11,945 | ) | (406 | ) | ||||||||
| Accounts payable | 14,030 | 16,402 | 12,104 | |||||||||||
| Accrued liabilities | 29,006 | 32,491 | (12,204 | ) | ||||||||||
| Net cash provided by (used in) operating activities | 15,873 | 9,585 | (29,785 | ) | ||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||
| Additions to property and equipment | (144,800 | ) | (565,759 | ) | (313,631 | ) | ||||||||
| Acquisition of assets | - | (79,777 | ) | - | ||||||||||
| Investment in joint venture | - | - | (157,404 | ) | ||||||||||
| Proceeds from sale of property and equipment | 464 | - | - | |||||||||||
| Net cash used in investing activities | (144,336 | ) | (645,536 | ) | (471,035 | ) | ||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||
| Proceeds from issuance of senior secured notes, net | 240,750 | 963,610 | - | |||||||||||
| Proceeds from borrowings under credit agreements | - | - | 141,821 | |||||||||||
| Proceeds from the issuance of 13 1/2% senior secured notes, net | - | - | 130,950 | |||||||||||
| Repayment of long-term debt | (109,716 | ) | (293,129 | ) | (19,360 | ) | ||||||||
| Proceeds from issuance of ordinary shares in public offerings, net | - | 101,889 | 80,291 | |||||||||||
| Proceeds from issuance of ordinary shares in private placement, net | - | - | 24,953 | |||||||||||
| Proceeds from warrant exercise in connection with joint venture | - | - | 150,000 | |||||||||||
| Proceeds from short-term notes payable-shareholders | - | - | 4,000 | |||||||||||
| Debt issuance costs | (12,983 | ) | (31,968 | ) | (12,400 | ) | ||||||||
| Net cash provided by financing activities | 118,051 | 740,402 | 500,255 | |||||||||||
| Net increase (decrease) in cash and cash equivalents | (10,412 | ) | 104,451 | (565 | ) | |||||||||
| Cash and cash equivalents-beginning of period | 120,443 | 15,992 | 16,557 | |||||||||||
| Cash and cash equivalents-end of period | $ | 110,031 | $ | 120,443 | $ | 15,992 | ||||||||
Contact Information:
Public & Investor Relations Contact:
Paul A. Bragg
Chairman & Chief Executive Officer
Vantage Drilling Company
(281) 404-4700