HOUSTON, TX--(Marketwired - May 10, 2013) - Vantage Drilling Company ("Vantage" or the "Company") (
Paul Bragg, Chairman and Chief Executive Officer, commented, "We are pleased with the performance of the fleet for the quarter. While Titanium Explorer operated for much of the quarter at a reduced dayrate, it is fortunate that the ship is now operating again at full rate. The incremental Titanium Explorer contract revenues, coupled with the recent refinancing of our debts, will greatly increase our earnings and cash flows for the remainder of the year, and thereafter. Additionally, we have received this week an additional Letter of Award for Tungsten Explorer, for work in Southeast Asia commencing upon delivery from the shipyard. The contract for this work will be completed upon receipt by our customer of the host-country governmental approval. The new project, and likely one additional project now under discussion, will be performed prior commencing the Moho Nord development project in West Africa the middle of next year."
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 drillships, the Platinum Explorer and Titanium Explorer, as well as an additional ultra-deepwater drillship, the Tungsten Explorer, now undergoing commissioning. 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 March 31, | ||||||||||
| 2013 | 2012 | |||||||||
| Revenues | ||||||||||
| Contract drilling services | $ | 134,664 | $ | 104,998 | ||||||
| Management fees | 3,198 | 2,722 | ||||||||
| Reimbursables | 9,139 | 24,129 | ||||||||
| Total revenues | 147,001 | 131,849 | ||||||||
| Operating costs and expenses | ||||||||||
| Operating costs | 75,317 | 69,324 | ||||||||
| General and administrative | 7,427 | 5,260 | ||||||||
| Depreciation | 24,861 | 16,572 | ||||||||
| Total operating costs and expenses | 107,605 | 91,156 | ||||||||
| Income from operations | 39,396 | 40,693 | ||||||||
| Other income (expense) | ||||||||||
| Interest income | 96 | 12 | ||||||||
| Interest expense and other financing charges | (59,662 | ) | (36,763 | ) | ||||||
| Loss on debt extinguishment | (98,327 | ) | - | |||||||
| Other, net | 901 | 645 | ||||||||
| Total other income (expense) | (156,992 | ) | (36,106 | ) | ||||||
| Income (loss) before income taxes | (117,596 | ) | 4,587 | |||||||
| Income tax provision | 5,605 | 5,766 | ||||||||
| Net loss | $ | (123,201 | ) | $ | (1,179 | ) | ||||
| Loss per share | ||||||||||
| Basic | $ | (0.41 | ) | $ | (0.00 | ) | ||||
| Diluted | $ | (0.41 | ) | $ | (0.00 | ) | ||||
| Vantage Drilling Company | ||||||||||
| Consolidated Balance Sheet | ||||||||||
| (In thousands, except par value information) | ||||||||||
| March 31, | December 31, | |||||||||
| 2013 | 2012 | |||||||||
| (Unaudited) | ||||||||||
| ASSETS | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | $ | 457,000 | $ | 502,726 | ||||||
| Restricted cash | 3,515 | 3,515 | ||||||||
| Trade receivables | 101,931 | 119,452 | ||||||||
| Inventory | 42,263 | 37,944 | ||||||||
| Prepaid expenses and other current assets | 19,803 | 25,208 | ||||||||
| Total current assets | 624,512 | 688,845 | ||||||||
| Property and equipment | ||||||||||
| Property and equipment | 2,912,385 | 2,893,837 | ||||||||
| Accumulated depreciation | (201,187 | ) | (176,331 | ) | ||||||
| Property and equipment, net | 2,711,198 | 2,717,506 | ||||||||
| Other assets | ||||||||||
| Investment in joint venture | 31,909 | 31,320 | ||||||||
| Other assets | 87,951 | 92,536 | ||||||||
| Total other assets | 119,860 | 123,856 | ||||||||
| Total assets | $ | 3,455,570 | $ | 3,530,207 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
| Current liabilities | ||||||||||
| Accounts payable | $ | 41,195 | $ | 50,909 | ||||||
| Accrued liabilities | 86,312 | 123,484 | ||||||||
| Current maturities of long-term debt | 41,000 | 31,250 | ||||||||
| Total current liabilities | 168,507 | 205,643 | ||||||||
| Long-term debt, net of discount of $35,212 and $11,940 | 2,796,288 | 2,710,559 | ||||||||
| Other long-term liabilities | 43,422 | 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; 301,712 and 299,647 shares issued and outstanding | 302 | 299 | ||||||||
| Additional paid-in capital | 880,204 | 878,137 | ||||||||
| Accumulated deficit | (433,153 | ) | (309,951 | ) | ||||||
| Total shareholders' equity | 447,353 | 568,485 | ||||||||
| Total liabilities and shareholders' equity | $ | 3,455,570 | $ | 3,530,207 | ||||||
| Vantage Drilling Company | ||||||||||
| Consolidated Statement of Cash Flows | ||||||||||
| (In thousands) | ||||||||||
| (Unaudited) | ||||||||||
| Three Months Ended March 31, | ||||||||||
| 2013 | 2012 | |||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||
| Net loss | $ | (123,201 | ) | $ | (1,179 | ) | ||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||
| Depreciation expense | 24,861 | 16,572 | ||||||||
| Amortization of debt financing costs | 3,995 | 2,374 | ||||||||
| Non-cash loss on debt extinguishment | 6,070 | - | ||||||||
| Equity in loss of joint venture | 133 | - | ||||||||
| Share-based compensation expense | 2,069 | 2,253 | ||||||||
| Amortization of debt discount (premium) | (97 | ) | 1,937 | |||||||
| Deferred income tax expense | 778 | 598 | ||||||||
| Loss on disposal of assets | 1 | 3 | ||||||||
| Changes in operating assets and liabilities: | ||||||||||
| Restricted cash | - | 1,650 | ||||||||
| Trade receivables | 17,521 | (12,686 | ) | |||||||
| Inventory | (4,319 | ) | (1,276 | ) | ||||||
| Prepaid expenses and other current assets | 3,963 | (1,489 | ) | |||||||
| Other assets | 290 | 610 | ||||||||
| Accounts payable | (9,713 | ) | (4,102 | ) | ||||||
| Accrued liabilities and other long-term liabilities | (42,762 | ) | (55,455 | ) | ||||||
| Net cash used in operating activities | (120,411 | ) | (50,190 | ) | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||
| Additions to property and equipment | (15,135 | ) | (3,328 | ) | ||||||
| Proceeds from sale of property and equipment | 2 | - | ||||||||
| Net cash used in investing activities | (15,133 | ) | (3,328 | ) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||
| Proceeds from issuance of senior secured notes, net | 775,000 | - | ||||||||
| Proceeds from issuance of term loan, net | 344,750 | - | ||||||||
| Repayment of long-term debt | (1,006,249 | ) | - | |||||||
| Debt issuance costs | (23,683 | ) | (39 | ) | ||||||
| Net cash provided by (used in) financing activities | 89,818 | (39 | ) | |||||||
| Net decrease in cash and cash equivalents | (45,726 | ) | (53,557 | ) | ||||||
| Cash and cash equivalents -- beginning of period | 502,726 | 110,031 | ||||||||
| Cash and cash equivalents -- end of period | $ | 457,000 | $ | 56,474 | ||||||
Public & Investor Relations Contact: Paul A. Bragg Chairman & Chief Executive Officer Vantage Drilling Company (281) 404-4700
