Vantage Drilling Company Reports Fourth Quarter and Full Year 2013 Results

Vantage Drilling Company Reports Fourth Quarter and Full Year 2013 Results 
NEWS RELEASE TRANSMITTED BY Marketwired 
FOR: Vantage Drilling Company 
NYSE MKT SYMBOL:  VTG 
FEBRUARY 28, 2014 
Vantage Drilling Company Reports Fourth Quarter and Full Year 2013 Results 
HOUSTON, TX--(Marketwired - February 28, 2014) - Vantage Drilling Company
("Vantage" or the "Company") (NYSE MKT: VTG) reports record
net income for the three months ended December 31, 2013 of $30.3 million or
$0.09 per diluted share as compared to a net loss of $11.5 million or ($0.04)
per diluted share excluding approximately $122.1 million of charges for the
early retirement of debt, for the three months ended December 31, 2012.
Including the charges for the early retirement of debt in the prior year, the
company reported a net loss of $133.6 million or ($0.45) per diluted share. 
For the twelve months ended December 31, 2013, Vantage reports net income of
approximately $16.5 million or $0.05 per diluted share excluding approximately
$98.3 million of charges for the early retirement of debt as compared to a net
loss of $20.7 million or ($0.07) per diluted share for the twelve months ended
December 31, 2012, excluding approximately $124.6 million of charges for the
early retirement of debt. Including the charges for the early retirement of
debt, the company reported losses of $81.8 million or ($0.27) per diluted share
and $145.3 million or ($0.50) per diluted share for the twelve months ended
December 31, 2013 and 2012, respectively. 
Paul Bragg, Chairman and Chief Executive Officer, commented, "We are
pleased to announce record revenue, EBITDA and net income for the quarter with
exceptional operating performance of all seven of our completed rigs. These
exceptional results are due not only to the quality of our fleet, but also to
the dedicated efforts of our workforce." 
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
seven 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. 
/T/ 
Vantage Drilling Company 
Consolidated Statement of Operations 
(In thousands, except per share amounts) 
Three Months Ended        Twelve Months Ended 
December 31,              December 31, 
------------------------  ------------------------ 
2013         2012         2013         2012 
-----------  -----------  -----------  ----------- 
(Unaudited)  (Unaudited)
Revenues
  Contract drilling 
services              $   216,775  $   113,696  $   666,129  $   423,897
  Management fees              5,111        1,961       14,622        6,605
  Reimbursables               16,651        7,307       51,309       40,970 
-----------  -----------  -----------  ----------- 
Total revenues           238,537      122,964      732,060      471,472 
-----------  -----------  -----------  -----------
Operating costs and
 expenses
  Operating costs             99,349       58,731      335,915      230,089
  General and 
administrative              9,240        7,416       32,612       26,002
  Depreciation                31,882       19,228      106,609       68,747 
-----------  -----------  -----------  ----------- 
Total operating 
costs and expenses      140,471       85,375      475,136      324,838 
-----------  -----------  -----------  -----------
Income from operations        98,066       37,589      256,924      146,634
Other income (expense)
  Interest income                 26           42          221           90
  Interest expense and 
other financing 
charges                   (55,853)     (44,600)    (214,149)    (149,118)
  Loss on debt 
extinguishment                  -     (122,071)     (98,327)    (124,599)
  Other, net                    (574)        (205)       1,621          595 
-----------  -----------  -----------  ----------- 
Total other income 
(expense)               (56,401)    (166,834)    (310,634)    (273,032) 
-----------  -----------  -----------  -----------
Income (loss) before
 income taxes                 41,665     (129,245)     (53,710)    (126,398)
Income tax provision          11,349        4,365       28,115       18,906 
-----------  -----------  -----------  -----------
Net income (loss)        $    30,316  $  (133,610) $   (81,825) $  (145,304) 
===========  ===========  ===========  =========== 
Earnings (loss) per
 share
  Basic                  $      0.10  $     (0.45) $     (0.27) $     (0.50)
  Diluted                $      0.09  $     (0.45) $     (0.27) $     (0.50) 
Vantage Drilling Company 
Supplemental Operating Data 
(Unaudited, in thousands, except percentages) 
Three Months Ended        Twelve Months Ended 
December 31,              December 31, 
------------------------  ------------------------ 
2013         2012         2013         2012 
-----------  -----------  -----------  -----------
Operating costs and
 expenses
  Jackups                $    21,288  $    22,575  $    89,253  $    87,724
  Deepwater                   56,092       24,010      164,775       82,044
  Operations support           8,108        5,695       33,267       23,449
  Reimbursables               13,861        6,451       48,620       36,872 
-----------  -----------  -----------  ----------- 
$    99,349  $    58,731  $   335,915  $   230,089 
-----------  -----------  -----------  ----------- 
Utilization
  Jackups                       89.4%        88.3%        87.1%        96.7%
  Deepwater                     90.3%        97.2%        93.3%        96.4% 
Vantage Drilling Company 
Consolidated Balance Sheet 
(In thousands, except par value information) 
December 31, 
2013           2012 
-------------  ------------- 
ASSETS
Current assets
  Cash and cash equivalents                    $      54,686  $     502,726
  Restricted cash                                      2,125          3,515
Trade receivables                                  168,654        119,452
  Inventory                                           55,804         37,944
  Prepaid expenses and other current assets           23,717         25,208 
-------------  ------------- 
Total current assets                             304,986        688,845 
-------------  -------------
Property and equipment
  Property and equipment                           3,472,407      2,893,837
  Accumulated depreciation                          (281,759)      (176,331) 
-------------  ------------- 
Property and equipment, net                    3,190,648      2,717,506 
-------------  -------------
Other assets
  Investment in joint venture                         32,482         31,320
  Other assets                                       100,027         92,536 
-------------  ------------- 
Total other assets                               132,509        123,856 
-------------  -------------
Total assets                                   $   3,628,143  $   3,530,207 
=============  ============= 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
  Accounts payable                             $      66,860  $      50,909
  Accrued liabilities                                 97,481        123,484
  Current maturities of long-term debt and 
revolving credit agreement                         63,500         31,250 
-------------  -------------
  Total current liabilities                          227,841        205,643 
-------------  -------------
Long-term debt, net of discount of $39,325 and
 $11,940                                           2,852,050      2,710,559
Other long-term liabilities                           42,796         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; 304,101 and 299,647 
shares issued and outstanding                         304            299
  Additional paid-in capital                         896,928        878,137
  Accumulated deficit                               (391,776)      (309,951) 
-------------  -------------
Total shareholders' equity                       505,456        568,485 
-------------  -------------
Total liabilities and shareholders' equity     $   3,628,143  $  
3,530,207 
=============  ============= 
Vantage Drilling Company 
Consolidated Statement of Cash Flows 
(In thousands) 
Year Ended December 31, 
---------------------------- 
2013           2012 
-------------  -------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss                                       $     (81,825) $    (145,304)
Adjustments to reconcile net loss to net cash
 provided by (used in) operating activities:
  Depreciation expense                               106,609         68,747
  Amortization of debt financing costs                12,356         16,930
  Amortization of debt discount (premium)              7,523         (3,828)
  Non-cash loss on debt extinguishment                 6,070          9,546
  Share-based compensation expense                     7,064          7,073
  Deferred income tax expense                            997          3,785
  Equity in loss of joint venture                        513             49
  Loss on disposal of assets                           1,603          1,321
Changes in operating assets and liabilities:
  Restricted cash                                      1,390          3,513
  Trade receivables                                  (49,202)       (52,207)
  Inventory                                          (17,860)       (13,568)
  Prepaid expenses and other current assets            1,169         (9,724)
  Other assets                                       (12,654)           318
  Accounts payable                                    15,951          4,546
  Accrued liabilities and other long-term 
liabilities                                       (48,135)       (41,762) 
-------------  ------------- 
Net cash used in operating activities            (48,431)      (150,565) 
-------------  -------------
CASH FLOWS FROM INVESTING ACTIVITIES
  Additions to property and equipment               (564,319)      (874,117)
  Investment in joint venture                              -        (31,000)
  Proceeds from sale of property and equipment            22              - 
-------------  ------------- 
Net cash used in investing activities           (564,297)      (905,117) 
-------------  -------------
CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from issuance of senior secured 
notes, net                                        775,000      1,987,000
  Proceeds from the issuance of term loan, net       344,750        490,000
  Proceeds from the issuance of senior 
convertible notes                                 100,000         50,000
  Repayment of long-term debt                     (1,033,874)    (1,006,251)
  Proceeds from revolving credit agreement, 
net                                                10,000              -
  Debt issuance costs                                (31,188)       (72,372) 
-------------  ------------- 
Net cash provided by financing activities        164,688      1,448,377 
-------------  ------------- 
Net increase (decrease) in cash and cash 
equivalents                                    (448,040)       392,695
  Cash and cash equivalents-beginning of year        502,726        110,031 
-------------  -------------
  Cash and cash equivalents-end of year        $      54,686  $     502,726 
=============  ============= 
/T/ 
-30-
FOR FURTHER INFORMATION PLEASE CONTACT: 
Public & Investor Relations Contact:
Paul A. Bragg
Chairman & Chief Executive Officer
Vantage Drilling Company
(281) 404-4700 
INDUSTRY:  Energy and Utilities - Oil and Gas , Energy and Utilities -
Pipelines 
SUBJECT:  ERN 
-0-
-0- Feb/28/2014 11:00 GMT
 
 
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