Vantage Drilling Company Reports Second Quarter 2013 Results

Vantage Drilling Company Reports Second Quarter 2013 Results 
HOUSTON, TX -- (Marketwired) -- 08/09/13 --  Vantage Drilling Company
("Vantage" or the "Company") (NYSE MKT: VTG) reports a net income for
the three months ended June 30, 2013 of $4.2 million or $0.01 per
diluted share as compared to a net loss of $10.0 million or ($0.03)
per diluted share for the three months ended June 30, 2012.  
For the six months ended June 30, 2013, Vantage reports a net loss of
$20.7 million or ($0.07) per diluted shares excluding approximately
$98.3 million of charges for the early retirement of debt as compared
to a net loss of $11.2 million or ($0.04) per diluted shares for the
six months ended June 30, 2012. Including charges for the early
retirement of debt, the Company reported a net loss of $119.0 million
or ($.39) per diluted share. 
Paul Bragg, Chairman and Chief Executive Officer, commented, "We are
very pleased to have had another strong operating quarter from our
fleet. We have added additional backlog for the Tungsten Explorer and
anticipate a successful commencement of operations in September.
Since the quarter end, we have ordered another ultra-deepwater
drillship, the Cobalt Explorer. The Cobalt Explorer is scheduled for
a 3rd quarter 2015 delivery." 
Vantage, a Cayman Islands exempted company, is an offshore drilling
contractor, with an owned fleet of three ultra-deepwater drillships,
the Platinum Explorer, the Titanium Explorer and the Tungsten
Explorer as well as an additional ultra-deepwater drillship, the
Cobalt Explorer, now under construction, and four Baker Marine
Pacific Class 375 ultra-premium jackup drilling rigs. 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 eight owned 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     Six Months Ended   
                                       June 30,              June 30,       
                                 --------------------  -------------------- 
                                    2013       2012       2013       2012   
                                 ---------  ---------  ---------  --------- 
Revenues                                                                    
  Contract drilling services     $ 155,803  $  99,683  $ 290,467  $ 204,681 
  Management fees                    2,410        956      5,608      3,678 
  Reimbursables                     12,424      4,486     21,563     28,615 
                                 ---------  ---------  ---------  --------- 
    Total revenues                 170,637    105,125    317,638    236,974 
                                 ---------  ---------  ---------  --------- 
  Operating costs and expenses                                              
  Operating costs                   77,117     50,030    152,434    119,354 
  General and administrative         7,054      6,704     14,481     11,964 
  Depreciation                      24,980     16,372     49,841     32,944 
                                 ---------  ---------  ---------  --------- 
    Total operating costs and                                               
     expenses                      109,151     73,106    216,756    164,262 
                                 ---------  ---------  ---------  --------- 
Income from operations              61,486     32,019    100,882     72,712 
Other income (expense)                                                      
  Interest income                       74         21        170         33 
  Interest expense and other                                                
   financing charges               (51,255)   (36,172)  (110,917)   (72,935)
  Loss on debt extinguishment            -          -    (98,327)         - 
  Other, net                           988        216      1,889        861 
                                 ---------  ---------  ---------  --------- 
    Total other income (expense)   (50,193)   (35,935)  (207,185)   (72,041)
                                 ---------  ---------  ---------  --------- 
Income (loss) before income                                                 
 taxes                              11,293     (3,916)  (106,303)       671 
Income tax provision                 7,077      6,061     12,682     11,827 
                                 ---------  ---------  ---------  --------- 
Net income (loss)                $   4,216  $  (9,977) $(118,985) $ (11,156)
                                 =========  =========  =========  ========= 
                                                                            
Earnings (loss) per share                                                   
  Basic                          $    0.01  $   (0.03) $   (0.39) $   (0.04)
  Diluted                        $    0.01  $   (0.03) $   (0.39) $   (0.04)
                                                                            
                                                                            
                                                                            
                                                                            
                          Vantage Drilling Company                          
                         Consolidated Balance Sheet                         
                (In thousands, except par value information)                
                                                                            
                                                   June 30,    December 31, 
                                                     2013          2012     
                                                 ------------  ------------ 
                                                  (Unaudited)               
                     ASSETS                                                 
Current assets                                                              
  Cash and cash equivalents                      $    440,405  $    502,726 
  Restricted cash                                       3,353         3,515 
  Trade receivables                                   107,876       119,452 
  Inventory                                            45,757        37,944 
  Prepaid expenses and other current assets            19,071        25,208 
                                                 ------------  ------------ 
    Total current assets                              616,462       688,845 
                                                 ------------  ------------ 
Property and equipment                                                      
  Property and equipment                            2,945,368     2,893,837 
  Accumulated depreciation                           (226,134)     (176,331)
                                                 ------------  ------------ 
    Property and equipment, net                     2,719,234     2,717,506 
                                                 ------------  ------------ 
Other assets                                                                
  Investment in joint venture                          32,359        31,320 
  Other assets                                         93,061        92,536 
                                                 ------------  ------------ 
    Total other assets                                125,420       123,856 
                                                 ------------  ------------ 
Total assets                                     $  3,461,116  $  3,530,207 
                                                 ============  ============ 
                                                                            
LIABILITIES AND SHAREHOLDERS' EQUITY                                        
Current liabilities                                                         
  Accounts payable                               $     58,126  $     50,909 
  Accrued liabilities                                  75,065       123,484 
  Current maturities of long-term debt                 47,250        31,250 
                                                 ------------  ------------ 
    Total current liabilities                         180,441       205,643 
                                                 ------------  ------------ 
Long-term debt, net of discount of $33,280 and                              
 $11,940                                            2,784,845     2,710,559 
Other long-term liabilities                            42,678        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; 302,108 and 299,647 shares                            
   issued and outstanding                                 302           299 
  Additional paid-in capital                          881,787       878,137 
  Accumulated deficit                                (428,937)     (309,951)
                                                 ------------  ------------ 
    Total shareholders' equity                        453,152       568,485 
                                                 ------------  ------------ 
Total liabilities and shareholders' equity       $  3,461,116  $  3,530,207 
                                                 ============  ============ 
                                                                            
                                                                            
                                                                            
                                                                            
                          Vantage Drilling Company                          
                    Consolidated Statement of Cash Flows                    
                               (In thousands)                               
                                (Unaudited)                                 
                                                  Six Months Ended June 30, 
                                                 -------------------------- 
                                                     2013          2012     
                                                 ------------  ------------ 
CASH FLOWS FROM OPERATING ACTIVITIES                                        
Net loss                                         $   (118,985) $    (11,156)
Adjustments to reconcile net loss to net cash                               
 provided by (used in) operating activities:                                
  Depreciation expense                                 49,841        32,944 
  Amortization of debt financing costs                  6,588         7,438 
  Non-cash loss on debt extinguishment                  6,070             - 
  Equity in loss of joint venture                         256             - 
  Share-based compensation expense                      3,652         4,420 
  Amortization of debt discount (premium)               1,835          (762)
  Deferred income tax expense                             764         1,860 
  Loss on disposal of assets                               14           249 
Changes in operating assets and liabilities:                                
  Restricted cash                                         162         1,150 
  Trade receivables                                    11,576       (10,977)
  Inventory                                            (7,814)       (9,256)
  Prepaid expenses and other current assets             5,308         1,476 
  Other assets                                         (4,646)        1,357 
  Accounts payable                                      7,218        10,481 
  Accrued liabilities and other long-term                                   
   liabilities                                        (58,946)          644 
                                                 ------------  ------------ 
    Net cash provided by (used in) operating                                
     activities                                       (97,107)       29,868 
                                                 ------------  ------------ 
CASH FLOWS FROM INVESTING ACTIVITIES                                        
  Additions to property and equipment                 (45,130)     (816,722)
  Proceeds from sale of property and equipment              2             - 
                                                 ------------  ------------ 
    Net cash used in investing activities             (45,128)     (816,722)
                                                 ------------  ------------ 
CASH FLOWS FROM FINANCING ACTIVITIES                                        
  Proceeds from issuance of senior secured                                  
   notes, net                                         775,000       837,000 
  Proceeds from issuance of term loan, net            344,750             - 
  Repayment of long-term debt                      (1,013,374)            - 
  Debt issuance costs                                 (26,462)      (36,468)
                                                 ------------  ------------ 
    Net cash provided by financing activities          79,914       800,532 
                                                 ------------  ------------ 
    Net increase (decrease) in cash and cash                                
     equivalents                                      (62,321)       13,678 
  Cash and cash equivalents--beginning of period      502,726       110,031 
                                                 ------------  ------------ 
  Cash and cash equivalents--end of period       $    440,405  $    123,709 
                                                 ============  ============ 

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