Vantage Drilling Company Reports Fourth Quarter and Full Year 2013 Results

Vantage Drilling Company Reports Fourth Quarter and Full Year 2013 Results 
HOUSTON, TX -- (Marketwired) -- 02/28/14 --  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. 


 
                                                                            
                          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 
                                               =============  ============= 

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