HOUSTON, TX--(Marketwire - Nov 9, 2011) - Vantage Drilling Company ("Vantage") (
For the nine months ended September 30, 2011, Vantage reports a net loss of $45.4 million or ($0.16) per share excluding approximately $25.2 million of charges for refinancing debt as compared to a loss of $6.8 million or ($.03) per share in the prior year period, excluding approximately $27.8 million of acquisition and refinancing charges. Including the refinancing charges for the nine months ended September 30, 2011, Vantage reported a net loss $70.6 million or ($0.24) per share as compared to a net loss of $34.6 million or $(0.14) per share for the nine months ended September 30, 2010, including the acquisition and refinancing charges.
Paul Bragg, Chairman and Chief Executive Officer, commented, "Our fleet performed very well during the quarter as we achieved nearly 100% productive time operating our jackup fleet and the Platinum Explorer operated at approximately 97% productive time. We are also pleased to announce that during the quarter, we also completed the customer-reimbursed upgrades on the Topaz Driller and have since commenced operations in Malaysia in early October."
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) | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||
| Revenues | ||||||||||||||||||
| Contract drilling services | $ | 89,882 | $ | 44,864 | $ | 274,402 | $ | 132,632 | ||||||||||
| Management fees | 3,285 | 4,516 | 10,499 | 13,391 | ||||||||||||||
| Reimbursables | 25,367 | 17,527 | 79,148 | 47,488 | ||||||||||||||
| Total revenues | 118,534 | 66,907 | 364,049 | 193,511 | ||||||||||||||
| Operating costs and expenses | ||||||||||||||||||
| Operating costs | 69,610 | 41,582 | 212,224 | 112,946 | ||||||||||||||
| General and administrative | 6,219 | 6,294 | 20,469 | 15,703 | ||||||||||||||
| Depreciation | 15,988 | 8,768 | 48,126 | 24,611 | ||||||||||||||
| Total operating expenses | 91,817 | 56,644 | 280,819 | 153,260 | ||||||||||||||
| Income from operations | 26,717 | 10,263 | 83,230 | 40,251 | ||||||||||||||
| Other income (expense) | ||||||||||||||||||
| Interest income | 7 | 381 | 68 | 396 | ||||||||||||||
| Interest expense and financing charges | (37,074 | ) | (14,292 | ) | (117,966 | ) | (35,608 | ) | ||||||||||
| Loss on debt extinguishment | - | (24,006 | ) | (25,196 | ) | (24,006 | ) | |||||||||||
| Loss on acquisition of subsidiary | - | (3,780 | ) | - | (3,780 | ) | ||||||||||||
| Other income | 455 | 618 | 1,913 | 1,568 | ||||||||||||||
| Total other expense | (36,612 | ) | (41,079 | ) | (141,181 | ) | (61,430 | ) | ||||||||||
| Loss before income taxes | (9,895 | ) | (30,816 | ) | (57,951 | ) | (21,179 | ) | ||||||||||
| Income tax provision | 1,986 | 2,765 | 12,654 | 13,435 | ||||||||||||||
| Net loss | $ | (11,881 | ) | $ | (33,581 | ) | $ | (70,605 | ) | $ | (34,614 | ) | ||||||
| Loss per share | ||||||||||||||||||
| Basic | $ | (0.04 | ) | $ | (0.12 | ) | $ | (0.24 | ) | $ | (0.14 | ) | ||||||
| Diluted | $ | (0.04 | ) | $ | (0.12 | ) | $ | (0.24 | ) | $ | (0.14 | ) | ||||||
| Vantage Drilling Company | ||||||||||
| Consolidated Balance Sheet | ||||||||||
| (In thousands, except par value information) | ||||||||||
| |
|
September 30, 2011 |
December 31, 2010 |
|||||||
| (Unaudited) | ||||||||||
| ASSETS | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | $ | 37,188 | $ | 120,443 | ||||||
| Restricted cash | 6,761 | 29,004 | ||||||||
| Trade receivables | 118,823 | 50,190 | ||||||||
| Inventory | 22,326 | 19,760 | ||||||||
| Prepaid expenses and other current assets | 5,079 | 11,472 | ||||||||
| Total current assets | 190,177 | 230,869 | ||||||||
| Property and equipment | ||||||||||
| Property and equipment | 1,892,973 | 1,762,844 | ||||||||
| Accumulated depreciation | (92,640 | ) | (44,712 | ) | ||||||
| Property and equipment, net | 1,800,333 | 1,718,132 | ||||||||
| Other assets | ||||||||||
| Other assets | 57,652 | 54,193 | ||||||||
| Total other assets | 57,652 | 54,193 | ||||||||
| Total assets | $ | 2,048,162 | $ | 2,003,194 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
| Current liabilities | ||||||||||
| Accounts payable | $ | 37,104 | $ | 32,332 | ||||||
| Accrued liabilities | 45,795 | 75,159 | ||||||||
| Short-term debt | 857 | 8,574 | ||||||||
| Total current liabilities | 83,756 | 116,065 | ||||||||
| Long-term debt, net of discount of $40,530 and $63,654 | 1,244,470 | 1,103,480 | ||||||||
| Other long-term liabilities | 16,346 | 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; 290,706 and 289,713 shares issued and outstanding | 291 | 290 | ||||||||
| Additional paid-in capital | 858,600 | 854,557 | ||||||||
| Accumulated deficit | (155,301 | ) | (84,696 | ) | ||||||
| Total shareholders' equity | 703,590 | 770,151 | ||||||||
| Total liabilities and shareholders' equity | $ | 2,048,162 | $ | 2,003,194 | ||||||
| Vantage Drilling Company | ||||||||||
| Consolidated Statement of Cash Flows | ||||||||||
| (In thousands) | ||||||||||
| (Unaudited) | ||||||||||
| Nine Months Ended September 30, |
||||||||||
| 2011 | 2010 | |||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||
| Net loss | $ | (70,605 | ) | $ | (34,614 | ) | ||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||
| Depreciation expense | 48,126 | 24,611 | ||||||||
| Amortization of debt financing costs | 6,269 | 3,515 | ||||||||
| Non-cash loss on debt extinguishment | 3,532 | 12,280 | ||||||||
| Non-cash loss recognized related to acquisition of subsidiary | - | 3,780 | ||||||||
| Share-based compensation expense | 4,044 | 4,594 | ||||||||
| Accretion of long-term debt | 2,582 | 3,965 | ||||||||
| Amortization of debt discount | 7,374 | 2,682 | ||||||||
| Deferred income tax expense | 123 | 1,650 | ||||||||
| Gain on disposal of assets | (86 | ) | - | |||||||
| Changes in operating assets and liabilities: | ||||||||||
| Restricted cash | 22,243 | 1,944 | ||||||||
| Trade receivables | (68,633 | ) | (38,333 | ) | ||||||
| Inventory | (2,566 | ) | (8,113 | ) | ||||||
| Prepaid expenses and other current assets | 6,393 | 5,723 | ||||||||
| Other assets | (456 | ) | (12,084 | ) | ||||||
| Accounts payable | 4,772 | 15,065 | ||||||||
| Accrued liabilities | (30,363 | ) | 24,039 | |||||||
| Short-term debt | - | 1,467 | ||||||||
| Net cash provided by (used in) operating activities | (67,251 | ) | 12,171 | |||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||
| Additions to property and equipment | (126,695 | ) | (57,253 | ) | ||||||
| Acquisition of assets | - | (79,777 | ) | |||||||
| Escrowed funds for acquisition | - | (510,916 | ) | |||||||
| Proceeds from sale of property and equipment | 301 | - | ||||||||
| Net cash used in investing activities | (126,394 | ) | (647,946 | ) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||
| Proceeds from issuance of senior secured notes, net | 240,750 | 963,610 | ||||||||
| Repayment of long-term debt | (109,716 | ) | (293,129 | ) | ||||||
| Proceeds from issuance of ordinary shares in public offerings, net | - | 101,889 | ||||||||
| Repayment of short-term debt | (7,717 | ) | (4,267 | ) | ||||||
| Debt issuance costs | (12,927 | ) | (31,776 | ) | ||||||
| Net cash provided by financing activities | 110,390 | 736,327 | ||||||||
| Net increase (decrease) in cash and cash equivalents | (83,255 | ) | 100,552 | |||||||
| Cash and cash equivalents--beginning of period | 120,443 | 15,992 | ||||||||
| Cash and cash equivalents--end of period | $ | 37,188 | $ | 116,544 | ||||||
Contact Information:
Public & Investor Relations Contact:
Paul A. Bragg
Chairman & Chief Executive Officer
Vantage Drilling Company
(281) 404-4700