SOURCE: Vantage Drilling Company

February 15, 2013 07:00 ET

Vantage Drilling Company Reports Fourth Quarter 2012 Results

HOUSTON, TX--(Marketwire - Feb 15, 2013) - Vantage Drilling Company ("Vantage" or the "Company") (NYSE MKT: VTG) reports a net loss for the three months ended December 31, 2012 of $11.5 million or ($0.04) per diluted share excluding approximately $122.1 million of charges for the early retirement of debt, as compared to a net loss of $9.3 million or ($0.03) per diluted share for the three months ended December 31, 2011. Including the charges for the early retirement of debt, the Company reports a net loss of $133.6 million or ($.45) per diluted share for the three months ended December 31, 2012.

Net loss for the fiscal year ended December 31, 2012 was $20.7 million or ($0.07) per share excluding approximately $124.6 million of charges for the early retirement of debt as compared to a loss of $54.8 million or ($.19) per share in the prior year period, excluding approximately $25.2 million of refinancing charges. Including the refinancing charges, Vantage reported a net loss $145.3 million or ($0.50) per diluted share for the year ended December 31, 2012 as compared to a net loss of $80.0 million or $(0.28) per diluted share for the year ended December 31, 2011.

Paul Bragg, Chairman and Chief Executive Officer, commented, "2012 was a year of significant achievement for Vantage as we grew our fleet with the acquisition of the Titanium Explorer and strengthened our balance sheet by refinancing nearly half of our high cost debt at significantly lower rates."

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)  
                         
    Three Months Ended December 31,     Twelve Months Ended December 31,  
    2012     2011     2012     2011  
    (Unaudited)    (Unaudited)             
Revenues                                
  Contract drilling services   $ 113,696     $ 92,197     $ 423,897     $ 366,844  
  Management fees     1,961       3,228       6,605       13,727  
  Reimbursables     7,307       26,111       40,970       105,258  
    Total revenues     122,964       121,536       471,472       485,829  
Operating costs and expenses                                
  Operating costs     58,731       72,411       230,089       284,881  
  General and administrative     7,416       5,849       26,002       26,317  
  Depreciation     19,228       16,352       68,747       64,477  
    Total operating costs and expenses     85,375       94,612       324,838       375,675  
Income from operations     37,589       26,924       146,634       110,154  
Other income (expense)                                
  Interest income     42       29       90       96  
  Interest expense and other financing charges     (44,600 )     (36,931 )     (149,118 )     (154,897 )
  Loss on debt extinguishment     (122,071 )     -       (124,599 )     (25,196 )
  Other, net     (205 )     (589 )     595       1,324  
    Total other income (expense)     (166,834 )     (37,491 )     (273,032 )     (178,673 )
Loss before income taxes     (129,245 )     (10,567 )     (126,398 )     (68,519 )
Income tax provision (benefit)     4,365       (1,221 )     18,906       11,432  
Net loss   $ (133,610 )   $ (9,346 )   $ (145,304 )   $ (79,951 )
                                 
Loss per share                                
  Basic   $ (0.45 )   $ (0.03 )   $ (0.50 )   $ (0.28 )
  Diluted   $ (0.45 )   $ (0.03 )   $ (0.50 )   $ (0.28 )
                                   
                                   
   
   
Vantage Drilling Company  
Consolidated Balance Sheet  
(In thousands, except par value information)  
             
    December 31,  
    2012     2011  
ASSETS                
Current assets                
  Cash and cash equivalents   $ 502,726     $ 110,031  
  Restricted cash     3,515       7,028  
  Trade receivables     119,452       100,908  
  Inventory     37,944       24,376  
  Prepaid expenses and other current assets     25,208       16,909  
    Total current assets     688,845       259,252  
Property and equipment                
  Property and equipment     2,893,837       1,913,596  
  Accumulated depreciation     (176,331 )     (108,521 )
    Property and equipment, net     2,717,506       1,805,075  
Other assets                
  Investment in joint venture     31,320       -  
  Other assets     92,536       58,173  
    Total other assets     123,856       58,173  
Total assets   $ 3,530,207     $ 2,122,500  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY                
Current liabilities                
  Accounts payable   $ 50,909     $ 46,362  
  Accrued liabilities     123,484       103,809  
  Current maturities of long-term debt     31,250       -  
    Total current liabilities     205,643       150,171  
Long-term debt, net of discount of $11,940 and $38,572     2,710,559       1,246,428  
Other long-term liabilities     45,520       29,755  
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; 299,647 and 291,241 shares issued and outstanding     299       291  
  Additional paid-in capital     878,137       860,502  
  Accumulated deficit     (309,951 )     (164,647 )
    Total shareholders' equity     568,485       696,146  
Total liabilities and shareholders' equity   $ 3,530,207     $ 2,122,500  
                 
                 
   
   
Vantage Drilling Company  
Consolidated Statement of Cash Flows  
(In thousands)  
    Year Ended December 31,  
    2012     2011  
CASH FLOWS FROM OPERATING ACTIVITIES                
Net loss   $ (145,304 )   $ (79,951 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:                
  Depreciation expense     68,747       64,477  
  Amortization of debt financing costs     16,930       8,653  
  Non-cash loss on debt extinguishment     9,546       3,532  
  Equity in loss of joint venture     49       -  
  Share-based compensation expense     7,073       5,946  
  Accretion of long-term debt     -       2,582  
  Amortization of debt discount (premium)     (3,828 )     9,332  
  Deferred income tax expense (benefit)     3,785       (3,984 )
  Loss on disposal of assets     1,321       226  
Changes in operating assets and liabilities:                
  Restricted cash     3,513       21,977  
  Trade receivables     (52,207 )     (50,719 )
  Inventory     (13,568 )     (4,616 )
  Prepaid expenses and other current assets     (9,724 )     (1,549 )
  Other assets     318       (3,069 )
  Accounts payable     4,546       14,030  
  Accrued liabilities     (41,762 )     29,006  
    Net cash provided by (used in) operating activities     (150,565 )     15,873  
CASH FLOWS FROM INVESTING ACTIVITIES                
  Additions to property and equipment     (874,117 )     (144,800 )
  Investment in joint venture     (31,000 )     -  
  Proceeds from sale of property and equipment     -       464  
    Net cash used in investing activities     (905,117 )     (144,336 )
CASH FLOWS FROM FINANCING ACTIVITIES                
  Proceeds from issuance of senior secured notes, net     1,987,000       240,750  
  Proceeds from issuance of term loan     490,000       -  
  Proceeds from the issuance of senior convertible notes     50,000       -  
  Repayment of long-term debt     (1,006,251 )     (109,716 )
  Debt issuance costs     (72,372 )     (12,983 )
    Net cash provided by financing activities     1,448,377       118,051  
    Net increase (decrease) in cash and cash equivalents     392,695       (10,412 )
  Cash and cash equivalents-beginning of year     110,031       120,443  
  Cash and cash equivalents-end of year   $ 502,726     $ 110,031  
                   
                   

Contact Information

  • Public & Investor Relations Contact:

    Paul A. Bragg
    Chairman & Chief Executive Officer
    Vantage Drilling Company
    (281) 404-4700