HOUSTON, TX--(Marketwired - Nov 7, 2013) - Vantage Drilling Company ("Vantage" or the "Company") (
For the nine months ended September 30, 2013, Vantage reports a net loss of $13.8 million or ($0.05) per diluted share excluding approximately $98.3 million of charges for the early retirement of debt as compared to a net loss of $11.7 million or ($0.04) per diluted share for the nine months ended September 30, 2012. Including the charges for the early retirement of debt, the company reported a loss of $112.1 million or ($0.37) per diluted share for the nine months ended September 30, 2013.
Paul Bragg, Chairman and Chief Executive Officer, commented, "The third quarter marked another important milestone for Vantage as we successfully commenced operations on our third drillship, Tungsten Explorer, in Southeast Asia. With the Sapphire Driller commencing its new eighteen month contract in Gabon this week, we now have contribution from seven rigs for the first time."
Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with an owned fleet of three ultra-deepwater drillships, the Platinum Explorer, the Titanium Explorer and the Tungsten Explorer, as well as an additional ultra-deepwater drillship, the Cobalt Explorer, now under construction, and four Baker Marine Pacific Class 375 ultra-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. Vantage also provides construction supervision services for, and will operate and manage, drilling units owned by others. Through its fleet of seven owned 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 September 30, | Nine Months Ended September 30, | |||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||||
| Revenues | ||||||||||||||||||
| Contract drilling services | $ | 158,887 | $ | 105,521 | $ | 449,354 | $ | 310,202 | ||||||||||
| Management fees | 3,903 | 966 | 9,511 | 4,644 | ||||||||||||||
| Reimbursables | 13,095 | 5,047 | 34,658 | 33,662 | ||||||||||||||
| Total revenues | 175,885 | 111,534 | 493,523 | 348,508 | ||||||||||||||
| Operating costs and expenses | ||||||||||||||||||
| Operating costs | 84,132 | 52,004 | 236,566 | 171,358 | ||||||||||||||
| General and administrative | 8,891 | 6,622 | 23,372 | 18,586 | ||||||||||||||
| Depreciation | 24,886 | 16,575 | 74,727 | 49,519 | ||||||||||||||
| Total operating costs and expenses | 117,909 | 75,201 | 334,665 | 239,463 | ||||||||||||||
| Income from operations | 57,976 | 36,333 | 158,858 | 109,045 | ||||||||||||||
| Other income (expense) | ||||||||||||||||||
| Interest income | 26 | 15 | 195 | 48 | ||||||||||||||
| Interest expense and other financing charges | (47,379 | ) | (31,583 | ) | (158,296 | ) | (104,518 | ) | ||||||||||
| Loss on debt extinguishment | - | (2,528 | ) | (98,327 | ) | (2,528 | ) | |||||||||||
| Other, net | 305 | (61 | ) | 2,195 | 800 | |||||||||||||
| Total other income (expense) | (47,048 | ) | (34,157 | ) | (254,233 | ) | (106,198 | ) | ||||||||||
| Income (loss) before income taxes | 10,928 | 2,176 | (95,375 | ) | 2,847 | |||||||||||||
| Income tax provision | 4,084 | 2,714 | 16,766 | 14,541 | ||||||||||||||
| Net income (loss) | $ | 6,844 | $ | (538 | ) | $ | (112,141 | ) | $ | (11,694 | ) | |||||||
| Earnings (loss) per share | ||||||||||||||||||
| Basic | $ | 0.02 | $ | 0.00 | $ | (0.37 | ) | $ | (0.04 | ) | ||||||||
| Diluted | $ | 0.02 | $ | 0.00 | $ | (0.37 | ) | $ | (0.04 | ) | ||||||||
| Vantage Drilling Company | ||||||||||
| Consolidated Balance Sheet | ||||||||||
| (In thousands, except par value information) | ||||||||||
| September 30, | December 31, | |||||||||
| 2013 | 2012 | |||||||||
| (Unaudited) | ||||||||||
| ASSETS | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | $ | 67,729 | $ | 502,726 | ||||||
| Restricted cash | 3,353 | 3,515 | ||||||||
| Trade receivables | 144,915 | 119,452 | ||||||||
| Inventory | 53,090 | 37,944 | ||||||||
| Prepaid expenses and other current assets | 12,828 | 25,208 | ||||||||
| Total current assets | 281,915 | 688,845 | ||||||||
| Property and equipment | ||||||||||
| Property and equipment | 3,457,772 | 2,893,837 | ||||||||
| Accumulated depreciation | (250,571 | ) | (176,331 | ) | ||||||
| Property and equipment, net | 3,207,201 | 2,717,506 | ||||||||
| Other assets | ||||||||||
| Investment in joint venture | 32,650 | 31,320 | ||||||||
| Other assets | 96,010 | 92,536 | ||||||||
| Total other assets | 128,660 | 123,856 | ||||||||
| Total assets | $ | 3,617,776 | $ | 3,530,207 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
| Current liabilities | ||||||||||
| Accounts payable | $ | 56,624 | $ | 50,909 | ||||||
| Accrued liabilities | 120,090 | 123,484 | ||||||||
| Revolving credit agreement | 10,000 | - | ||||||||
| Current maturities of long-term debt | 53,500 | 31,250 | ||||||||
| Total current liabilities | 240,214 | 205,643 | ||||||||
| Long-term debt, net of discount of $42,243 and $11,940 | 2,862,507 | 2,710,559 | ||||||||
| Other long-term liabilities | 41,548 | 45,520 | ||||||||
| 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, 500,000 shares authorized; 303,644 and 299,647 shares issued and outstanding | 303 | 299 | ||||||||
| Additional paid-in capital | 895,296 | 878,137 | ||||||||
| Accumulated deficit | (422,092 | ) | (309,951 | ) | ||||||
| Total shareholders' equity | 473,507 | 568,485 | ||||||||
| Total liabilities and shareholders' equity | $ | 3,617,776 | $ | 3,530,207 | ||||||
| Vantage Drilling Company | ||||||||||
| Consolidated Statement of Cash Flows | ||||||||||
| (In thousands) | ||||||||||
| (Unaudited) | ||||||||||
| Nine Months Ended September 30, | ||||||||||
| 2013 | 2012 | |||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||
| Net loss | $ | (112,141 | ) | $ | (11,694 | ) | ||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||
| Depreciation expense | 74,727 | 49,519 | ||||||||
| Amortization of debt financing costs | 9,425 | 12,617 | ||||||||
| Amortization of debt discount (premium) | 4,605 | (3,473 | ) | |||||||
| Non-cash loss on debt extinguishment | 6,070 | 2,528 | ||||||||
| Share-based compensation expense | 5,431 | 5,808 | ||||||||
| Deferred income tax expense | 858 | 2,978 | ||||||||
| Equity in loss of joint venture | 345 | - | ||||||||
| Loss on disposal of assets | 114 | 502 | ||||||||
| Changes in operating assets and liabilities: | ||||||||||
| Restricted cash | 162 | 1,150 | ||||||||
| Trade receivables | (25,463 | ) | (9,382 | ) | ||||||
| Inventory | (15,146 | ) | (9,948 | ) | ||||||
| Prepaid expenses and other current assets | 11,709 | 1,509 | ||||||||
| Other assets | (6,866 | ) | 2,074 | |||||||
| Accounts payable | 5,715 | 14,090 | ||||||||
| Accrued liabilities and other long-term liabilities | (25,146 | ) | (105,126 | ) | ||||||
| Net cash used in operating activities | (65,601 | ) | (46,848 | ) | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||
| Additions to property and equipment | (548,621 | ) | (848,939 | ) | ||||||
| Proceeds from sale of property and equipment | 2 | - | ||||||||
| Net cash used in investing activities | (548,619 | ) | (848,939 | ) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||
| Proceeds from issuance of senior secured notes, net | 775,000 | 837,000 | ||||||||
| Proceeds from issuance of term loan, net | 344,750 | - | ||||||||
| Proceeds from issuance of senior convertible notes | 100,000 | 50,000 | ||||||||
| Repayment of long-term debt | (1,020,499 | ) | - | |||||||
| Proceeds from revolving credit agreement, net | 10,000 | - | ||||||||
| Debt issuance costs | (30,028 | ) | (38,768 | ) | ||||||
| Net cash provided by financing activities | 179,223 | 848,232 | ||||||||
| Net decrease in cash and cash equivalents | (434,997 | ) | (47,555 | ) | ||||||
| Cash and cash equivalents--beginning of period | 502,726 | 110,031 | ||||||||
| Cash and cash equivalents--end of period | $ | 67,729 | $ | 62,476 | ||||||
Contact Information:
Public & Investor Relations Contact:
Paul A. Bragg
Chairman & Chief Executive Officer
Vantage Drilling Company
(281) 404-4700