HOUSTON, TX--(Marketwire - Feb 15, 2013) - Vantage Drilling Company ("Vantage" or the "Company") (
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