HOUSTON, TX--(Marketwire - May 6, 2011) - Vantage Drilling Company ("Vantage") (NYSE Amex: VTG.U) (NYSE Amex: VTG) (NYSE Amex: VTG.WS) reports a net loss of ($18.7) million or ($0.06) per diluted share for the three months ended March 31, 2011 as compared to a net loss of ($13.0) million or ($.05) per diluted share in the fourth quarter of 2010 and net income of $6.0 million or $0.03 per diluted share for the three months ended March 31, 2010.
Revenue for the three months ended March 31, 2011 was $124.6 million as compared to revenue of $84.9 million in the fourth quarter of 2010 and $58.3 million for the three months ended March 31, 2010. Income from operations for the quarter was $24.3 million as compared to $6.7 million in the preceding quarter and $15.6 million in the prior year. The increase in revenue and income from operations for the quarter was driven by the Platinum Explorer which commenced operations on a five year contract in India in December 2010 partially offset by the Sapphire Driller and Aquamarine Driller having days off contract days during the quarter.
As we have previously announced, the Sapphire Driller's contract in the Côte d'Ivoire had a force majeure claim resulting from the civil unrest and the Aquamarine Driller's customer in the Philippines exercised the early termination provisions of the contract in order to reassess their drilling program. The Sapphire Driller and Aquamarine Driller have been mobilized to Cameroon and Malaysia, respectively and began new contracts in early March.
Paul Bragg, Chairman and Chief Executive Officer, commented, "This was a landmark quarter for Vantage as we now have all of our rigs operating. We are extremely pleased with the high-level of productive time across the fleet as the Platinum Explorer achieved over 93% productive time during its first quarter of operations and the jackup fleet achieve over 99% productive time for the quarter while on contract."
Vantage, a Cayman Islands exempted company, is an offshore drilling contractor with four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs operating and an ultra deepwater drillship, the Platinum Explorer. Vantage is also providing management services for four other ultra-deepwater drillships.
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 Balance Sheet
(In thousands, except par value information)
March 31, December 31,
2011 2010
----------- -----------
(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $ 51,709 $ 120,443
Restricted cash 27,699 29,004
Trade receivables 86,917 50,190
Inventory 21,714 19,760
Prepaid expenses and other current assets 10,940 11,472
----------- -----------
Total current assets 198,979 230,869
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Property and equipment
Property and equipment 1,781,926 1,762,844
Accumulated depreciation (60,824) (44,712)
----------- -----------
Property and equipment, net 1,721,102 1,718,132
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Other assets
Other assets 51,424 54,193
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Total other assets 51,424 54,193
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Total assets $ 1,971,505 $ 2,003,194
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 41,041 $ 32,332
Accrued liabilities 51,748 75,159
Short-term debt 6,002 8,574
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Total current liabilities 98,791 116,065
----------- -----------
Long-term debt, net of discount of $60,807 and
$63,654 1,107,816 1,103,480
Other long-term liabilities 12,486 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; 289,761 and 289,713 shares issued
and outstanding 290 290
Additional paid-in capital 855,471 854,557
Accumulated deficit (103,349) (84,696)
----------- -----------
Total shareholders' equity 752,412 770,151
----------- -----------
Total liabilities and shareholders' equity $ 1,971,505 $ 2,003,194
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Vantage Drilling Company
Consolidated Statement of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended March 31,
-----------------------------
2011 2010
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Revenues
Contract drilling services $ 86,712 $ 39,356
Management fees 3,966 4,437
Reimbursables 33,911 14,457
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Total revenues 124,589 58,250
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Operating costs and expenses
Operating costs 77,351 30,659
General and administrative 6,847 4,475
Depreciation 16,112 7,477
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Total operating expenses 100,310 42,611
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Income from operations 24,279 15,639
Other income (expense)
Interest income 38 12
Interest expense and financing charges (41,542) (7,985)
Other income 1,480 612
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Total other expense (40,024) (7,361)
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Income (loss) before income taxes (15,745) 8,278
Income tax provision 2,909 2,315
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Net income (loss) $ (18,654) $ 5,963
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Earnings (loss) per share
Basic $ (0.06) $ 0.03
Diluted $ (0.06) $ 0.03
Vantage Drilling Company
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended March 31,
2011 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ (18,654) $ 5,963
Adjustments to reconcile net income to net
cash provided by (used in) operating
activities:
Depreciation expense 16,112 7,477
Amortization of debt financing costs 1,868 976
Share-based compensation expense 914 1,526
Accretion of long-term debt 1,489 1,217
Amortization of debt discount 2,847 293
Deferred income tax benefit (252) -
Changes in operating assets and liabilities:
Restricted cash 1,305 (9,188)
Trade receivables (36,727) (22,205)
Inventory (1,954) (1,013)
Prepaid expenses and other current assets 533 (3,304)
Other assets 1,162 (198)
Accounts payable 8,709 1,919
Accrued liabilities (24,422) 7,245
Short-term debt - 904
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Net cash used in operating activities (47,070) (8,388)
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CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment (19,083) (11,934)
Investment in joint venture - (1,959)
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Net cash used in investing activities (19,083) (13,893)
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CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long-term debt - (9,649)
Proceeds from issuance of ordinary shares
in public offerings, net - 47,688
Repayment of short-term debt (2,572) (1,297)
Debt issuance costs (9) (59)
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Net cash provided by (used in) financing
activities (2,581) 36,683
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Net increase (decrease) in cash and cash
equivalents (68,734) 14,402
Cash and cash equivalents-beginning of
period 120,443 15,992
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Cash and cash equivalents-end of period $ 51,709 $ 30,394
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Contact Information: Public & Investor Relations Contact: Paul A. Bragg Chairman & Chief Executive Officer Vantage Drilling Company (281) 404-4700