HOUSTON, TX--(Marketwired - May 4, 2017) - Vantage Drilling International ("Vantage" or the "Company") reported a net loss of approximately $36.5 million or $7.30 per share for the three months ended March 31, 2017 as compared to a net loss of $29.0 million or $5.81 per share for the Successor period from February 10, 2016 through March 31, 2016 and a net loss of $471.0 million for the period from January 1, 2016 to February 10, 2016 for the Predecessor Company. The weighted-average shares outstanding for the three months ended March 31, 2017 and for the period from February 10, 2016 through March 31, 2016 was 5,000,053. As a wholly-owned subsidiary, the Predecessor did not have a comparable outstanding ordinary shares.
Upon emergence from the Company's Chapter 11 restructuring on February 10, 2016, Vantage adopted fresh-start accounting, which resulted in the Company becoming a new entity for financial reporting purposes. References to "Successor" relate to the financial position and results of operations of the reorganized Vantage as of and subsequent to February 10, 2016. References to "Predecessor" refer to the financial position of Vantage as of and prior to February 10, 2016 and the results of operations prior to February 10, 2016. As a result of the application of fresh-start accounting and the effects of the implementation of our Plan of Reorganization, the financial statements on or after February 10, 2016 are not comparable with the financial statements prior to that date.
As of March 31, 2017, Vantage had approximately $227.6 million of available cash as compared to $231.7 million as of December 31, 2016. Additionally, Vantage had $22.6 million available for issuance of letters of credit under its revolving letter of credit facility at the end of the quarter. Vantage also delivered operational rig uptime of 99% together with revenue efficiency of 101%. Ihab Toma, CEO, commented, "We are happy to report another successful quarter of superior operational performance combined with further reducing costs while maintaining our committed sharp focus on safety. Additionally, with the completion of the Vantage 260 acquisition in early April, the extension of the Aquamarine Driller contract, and the reactivation of both the Topaz Driller and Sapphire Driller set for May, we continue to build backlog and benefit from positive economies of scale, whilst preserving our strong balance sheet."
Vantage Drilling International, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of three ultra-deepwater drillships, four premium jackup drilling rigs and one standard jack-up drilling rig. 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 large 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.
| Vantage Drilling International | ||||||||||||||
| Consolidated Statement of Operations | ||||||||||||||
| (In thousands, except per share data) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Successor | Predecessor | |||||||||||||
| Three Months Ended March 31, 2017 | Period from February 10, 2016 to March 31, 2016 | Period from January 1, 2016 to February 10, 2016 | ||||||||||||
| Revenue | ||||||||||||||
| Contract drilling services | $ | 38,056 | $ | 24,059 | $ | 20,891 | ||||||||
| Management fees | 401 | 959 | 752 | |||||||||||
| Reimbursables | 3,592 | 4,768 | 1,897 | |||||||||||
| Total revenue | 42,049 | 29,786 | 23,540 | |||||||||||
| Operating costs and expenses | ||||||||||||||
| Operating costs | 28,998 | 27,439 | 25,213 | |||||||||||
| General and administrative | 11,479 | 9,168 | 2,558 | |||||||||||
| Depreciation | 18,439 | 12,076 | 10,696 | |||||||||||
| Total operating costs and expenses | 58,916 | 48,683 | 38,467 | |||||||||||
| Loss from operations | (16,867 | ) | (18,897 | ) | (14,927 | ) | ||||||||
| Other income (expense) | ||||||||||||||
| Interest income | 141 | 6 | 3 | |||||||||||
| Interest expense and other financing charges (contractual interest of $23,219 for the period from January 1, 2016 to February 10, 2016) | (18,899 | ) | (10,650 | ) | (1,728 | ) | ||||||||
| Other, net | 552 | 1,834 | (69 | ) | ||||||||||
| Reorganization items | - | (154 | ) | (452,919 | ) | |||||||||
| Total other expense | (18,206 | ) | (8,964 | ) | (454,713 | ) | ||||||||
| Loss before income taxes | (35,073 | ) | (27,861 | ) | (469,640 | ) | ||||||||
| Income tax provision | 1,426 | 1,167 | 2,371 | |||||||||||
| Net loss | (36,499 | ) | (29,028 | ) | (472,011 | ) | ||||||||
| Net loss attributable to noncontrolling interests | - | - | (969 | ) | ||||||||||
| Net loss attributable to VDI | $ | (36,499 | ) | $ | (29,028 | ) | $ | (471,042 | ) | |||||
| Net loss per share, basic and diluted | $ | (7.30 | ) | $ | (5.81 | ) | N/A | |||||||
| Weighted average successor ordinary shares outstanding, basic and diluted | 5,000 | 5,000 | N/A | |||||||||||
| Vantage Drilling International | ||||||||||||
| Supplemental Operating Data | ||||||||||||
| (Unaudited, in thousands, except percentages) | ||||||||||||
| Successor | Predecessor | |||||||||||
| Three Months Ended March 31, 2017 | Period from February 10, 2016 to March 31, 2016 | Period from January 1, 2016 to February 10, 2016 | ||||||||||
| Operating costs and expenses | ||||||||||||
| Jackups | $ | 12,862 | $ | 8,278 | $ | 5,975 | ||||||
| Deepwater | 11,056 | 13,146 | 15,550 | |||||||||
| Operations support | 2,969 | 2,215 | 2,219 | |||||||||
| Reimbursables | 2,111 | 3,800 | 1,469 | |||||||||
| $ | 28,998 | $ | 27,439 | $ | 25,213 | |||||||
| Utilization | ||||||||||||
| Jackups | 50.0 | % | 60.0 | % | 53.6 | % | ||||||
| Deepwater | 33.3 | % | 33.3 | % | 33.3 | % | ||||||
| Vantage Drilling International | ||||||||||
| Consolidated Balance Sheet | ||||||||||
| (In thousands, except share and par value information) | ||||||||||
| (Unaudited) | ||||||||||
| March 31, 2017 |
December 31, 2016 |
|||||||||
| ASSETS | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | $ | 227,592 | $ | 231,727 | ||||||
| Trade receivables | 19,643 | 20,850 | ||||||||
| Inventory | 44,913 | 45,206 | ||||||||
| Prepaid expenses and other current assets | 13,375 | 12,423 | ||||||||
| Total current assets | 305,523 | 310,206 | ||||||||
| Property and equipment | ||||||||||
| Property and equipment | 904,397 | 902,241 | ||||||||
| Accumulated depreciation | (86,152 | ) | (67,713 | ) | ||||||
| Property and equipment, net | 818,245 | 834,528 | ||||||||
| Other assets | 15,599 | 15,694 | ||||||||
| Total assets | $ | 1,139,367 | $ | 1,160,428 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
| Current liabilities | ||||||||||
| Accounts payable | $ | 36,951 | $ | 35,283 | ||||||
| Accrued liabilities | 22,896 | 18,448 | ||||||||
| Current maturities of long-term debt | 4,430 | 1,430 | ||||||||
| Total current liabilities | 64,277 | 55,161 | ||||||||
| Long-term debt, net of discount and financing costs of $93,260 and $105,568 | 876,322 | 867,372 | ||||||||
| Other long-term liabilities | 8,707 | 11,335 | ||||||||
| 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 | (183,916 | ) | (147,417 | ) | ||||||
| Total shareholders' equity | 190,061 | 226,560 | ||||||||
| Total liabilities and shareholders' equity | $ | 1,139,367 | $ | 1,160,428 | ||||||
| Vantage Drilling International | ||||||||||||||
| Consolidated Statement of Cash Flows | ||||||||||||||
| (In thousands) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Successor | Predecessor | |||||||||||||
| Three Months Ended March 31, 2017 | Period from February 10, 2016 to March 31, 2016 | Period from January 1, 2016 to February 10, 2016 | ||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||
| Net loss | $ | (36,499 | ) | $ | (29,028 | ) | $ | (472,011 | ) | |||||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||||||
| Depreciation expense | 18,439 | 12,076 | 10,696 | |||||||||||
| Amortization of debt financing costs | 117 | 76 | - | |||||||||||
| Amortization of debt discount | 12,191 | 6,847 | - | |||||||||||
| PIK interest on the Convertible Notes | 1,890 | 1,684 | - | |||||||||||
| Reorganization items | - | - | 430,210 | |||||||||||
| Share-based compensation expense | 780 | - | - | |||||||||||
| Deferred income tax benefit | (1,789 | ) | (606 | ) | - | |||||||||
| Loss on disposal of assets | - | 144 | - | |||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||
| Restricted cash | - | - | (1,000 | ) | ||||||||||
| Trade receivables | 1,207 | 22,629 | (3,575 | ) | ||||||||||
| Inventory | 293 | (221 | ) | 223 | ||||||||||
| Prepaid expenses and other current assets | (951 | ) | (4,954 | ) | 6,893 | |||||||||
| Other assets | 1,434 | 368 | 941 | |||||||||||
| Accounts payable | 1,668 | 6,708 | (14,890 | ) | ||||||||||
| Accrued liabilities and other long-term liabilities | (401 | ) | (7,485 | ) | 21,148 | |||||||||
| Net cash provided by (used in) operating activities | (1,621 | ) | 8,238 | (21,365 | ) | |||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||
| Additions to property and equipment | (2,156 | ) | (7,674 | ) | 116 | |||||||||
| Net cash provided by (used in) investing activities | (2,156 | ) | (7,674 | ) | 116 | |||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||
| Repayment of long-term debt | (358 | ) | (358 | ) | (7,000 | ) | ||||||||
| Proceeds from issuance of 10% Second Lien Notes | - | - | 75,000 | |||||||||||
| Debt issuance costs | - | (51 | ) | (1,125 | ) | |||||||||
| Net cash provided by (used in) financing activities | (358 | ) | (409 | ) | 66,875 | |||||||||
| Net increase (decrease) in cash and cash equivalents | (4,135 | ) | 155 | 45,626 | ||||||||||
| Cash and cash equivalents - beginning of period | 231,727 | 249,046 | 203,420 | |||||||||||
| Cash and cash equivalents - end of period | $ | 227,592 | $ | 249,201 | $ | 249,046 | ||||||||