Vantage Drilling Company Reports First Quarter 2013 Results

Vantage Drilling Company Reports First Quarter 2013 Results 
HOUSTON, TX -- (Marketwired) -- 05/10/13 --  Vantage Drilling Company
("Vantage" or the "Company") (NYSE MKT: VTG) reports a net loss for
the three months ended March 31, 2013 of $24.9 million or ($0.08) per
diluted share excluding approximately $98.3 million of charges for
the early retirement of debt as compared to a net loss of $1.2
million or ($0.00) per diluted share for the three months ended March
31, 2012. Including the charges for the early retirement of debt, the
Company reported a net loss of $123.2 million or ($.41) per diluted
share for the three months ended December 31, 2012. 
Paul Bragg, Chairman and Chief Executive Officer, commented, "We are
pleased with the performance of the fleet for the quarter. While
Titanium Explorer operated for much of the quarter at a reduced
dayrate, it is fortunate that the ship is now operating again at full
rate. The incremental Titanium Explorer contract revenues, coupled
with the recent refinancing of our debts, will greatly increase our
earnings and cash flows for the remainder of the year, and
thereafter. Additionally, we have received this week an additional
Letter of Award for Tungsten Explorer, for work in Southeast Asia
commencing upon delivery from the shipyard. The contract for this
work will be completed upon receipt by our customer of the
host-country governmental approval. The new project, and likely one
additional project now under discussion, will be performed prior
commencing the Moho Nord development project in West Africa the
middle of next year." 
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
drillships, the Platinum Explorer and Titanium Explorer, as well as
an additional ultra-deepwater drillship, the Tungsten Explorer, now
undergoing commissioning. 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 March 31, 
                                               ---------------------------- 
                                                    2013           2012     
                                               -------------  ------------- 
Revenues                                                                    
  Contract drilling services                   $     134,664  $     104,998 
  Management fees                                      3,198          2,722 
  Reimbursables                                        9,139         24,129 
                                               -------------  ------------- 
    Total revenues                                   147,001        131,849 
                                               -------------  ------------- 
Operating costs and expenses                                                
  Operating costs                                     75,317         69,324 
  General and administrative                           7,427          5,260 
  Depreciation                                        24,861         16,572 
                                               -------------  ------------- 
    Total operating costs and expenses               107,605         91,156 
                                               -------------  ------------- 
Income from operations                                39,396         40,693 
Other income (expense)                                                      
  Interest income                                         96             12 
  Interest expense and other financing charges       (59,662)       (36,763)
  Loss on debt extinguishment                        (98,327)             - 
  Other, net                                             901            645 
                                               -------------  ------------- 
    Total other income (expense)                    (156,992)       (36,106)
                                               -------------  ------------- 
Income (loss) before income taxes                   (117,596)         4,587 
Income tax provision                                   5,605          5,766 
                                               -------------  ------------- 
Net loss                                       $    (123,201) $      (1,179)
                                               =============  ============= 
                                                                            
Loss per share                                                              
  Basic                                        $       (0.41) $       (0.00)
  Diluted                                      $       (0.41) $       (0.00)
                                                                            
                                                                            
                                                                            
                                                                            
                                                                            
                          Vantage Drilling Company                          
                         Consolidated Balance Sheet                         
                (In thousands, except par value information)                
                                                                            
                                                   March 31,   December 31, 
                                                      2013         2012     
                                                  -----------  ------------ 
                                                  (Unaudited)               
                      ASSETS                                                
Current assets                                                              
  Cash and cash equivalents                       $   457,000  $    502,726 
  Restricted cash                                       3,515         3,515 
  Trade receivables                                   101,931       119,452 
  Inventory              
                              42,263        37,944 
  Prepaid expenses and other current assets            19,803        25,208 
                                                  -----------  ------------ 
    Total current assets                              624,512       688,845 
                                                  -----------  ------------ 
Property and equipment                                                      
  Property and equipment                            2,912,385     2,893,837 
  Accumulated depreciation                           (201,187)     (176,331)
                                                  -----------  ------------ 
    Property and equipment, net                     2,711,198     2,717,506 
                                                  -----------  ------------ 
Other assets                                                                
  Investment in joint venture                          31,909        31,320 
  Other assets                                         87,951        92,536 
                                                  -----------  ------------ 
    Total other assets                                119,860       123,856 
                                                  -----------  ------------ 
Total assets                                      $ 3,455,570  $  3,530,207 
                                                  ===========  ============ 
                                                                            
       LIABILITIES AND SHAREHOLDERS' EQUITY                                 
Current liabilities                                                         
  Accounts payable                                $    41,195  $     50,909 
  Accrued liabilities                                  86,312       123,484 
  Current maturities of long-term debt                 41,000        31,250 
                                                  -----------  ------------ 
    Total current liabilities                         168,507       205,643 
                                                  -----------  ------------ 
Long-term debt, net of discount of $35,212 and                              
 $11,940                                            2,796,288     2,710,559 
Other long-term liabilities                            43,422        45,520 
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; 301,712 and 299,647 shares                            
   issued and outstanding                                 302           299 
  Additional paid-in capital                          880,204       878,137 
  Accumulated deficit                                (433,153)     (309,951)
                                                  -----------  ------------ 
    Total shareholders' equity                        447,353       568,485 
                                                  -----------  ------------ 
Total liabilities and shareholders' equity        $ 3,455,570  $  3,530,207 
                                                  ===========  ============ 
                                                                            
                                                                            
                                                                            
                          Vantage Drilling Company                          
                    Consolidated Statement of Cash Flows                    
                               (In thousands)                               
                                (Unaudited)                                 
                                               Three Months Ended March 31, 
                                               ---------------------------- 
                                                    2013           2012     
                                               -------------  ------------- 
CASH FLOWS FROM OPERATING ACTIVITIES                                        
Net loss                                       $    (123,201) $      (1,179)
Adjustments to reconcile net loss to net cash                               
 used in operating activities:                                              
  Depreciation expense                                24,861         16,572 
  Amortization of debt financing costs                 3,995          2,374 
  Non-cash loss on debt extinguishment                 6,070              - 
  Equity in loss of joint venture                        133              - 
  Share-based compensation expense                     2,069          2,253 
  Amortization of debt discount (premium)                (97)         1,937 
  Deferred income tax expense                            778            598 
  Loss on disposal of assets                               1              3 
Changes in operating assets and liabilities:                                
  Restricted cash                                          -          1,650 
  Trade receivables                                   17,521        (12,686)
  Inventory                                           (4,319)        (1,276)
  Prepaid expenses and other current assets            3,963         (1,489)
  Other assets                                           290            610 
  Accounts payable                                    (9,713)        (4,102)
  Accrued liabilities and other long-term                                   
   liabilities                                       (42,762)       (55,455)
                                               -------------  ------------- 
    Net cash used in operating activities           (120,411)       (50,190)
                                               -------------  ------------- 
CASH FLOWS FROM INVESTING ACTIVITIES                                        
  Additions to property and equipment                (15,135)        (3,328)
  Proceeds from sale of property and equipment             2              - 
                                               -------------  ------------- 
    Net cash used in investing activities            (15,133)        (3,328)
                                               -------------  ------------- 
CASH FLOWS FROM FINANCING ACTIVITIES                                        
  Proceeds from issuance of senior secured                                  
   notes, net                                        775,000              - 
  Proceeds from issuance of term loan, net           344,750              - 
  Repayment of long-term debt                     (1,006,249)             - 
  Debt issuance costs                                (23,683)           (39)
                                               -------------  ------------- 
    Net cash provided by (used in) financing                                
     activities                                       89,818            (39)
                                               -------------  ------------- 
    Net decrease in cash and cash equivalents        (45,
726)       (53,557)
Cash and cash equivalents -- beginning of                                   
 period                                              502,726        110,031 
                                               -------------  ------------- 
Cash and cash equivalents -- end of period     $     457,000  $      56,474 
                                               =============  ============= 

  
Public & Investor Relations Contact:
Paul A. Bragg
Chairman & Chief Executive Officer
Vantage Drilling Company
(281) 404-4700 
 
 
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