Vantage Drilling Company Reports First Quarter 2014 Results

Vantage Drilling Company Reports First Quarter 2014 Results 
HOUSTON, TX -- (Marketwired) -- 05/06/14 --  Vantage Drilling Company
("Vantage" or the "Company") (NYSE MKT: VTG) reports net income for
the three months ended March 31, 2014 of $24.8 million or $0.07 per
diluted share as compared to a net loss of $24.9 million or ($0.08)
per diluted share excluding approximately $98.3 million of charges
for the early retirement of debt, for the three months ended March,
31, 2013. Including the charges for the early retirement of debt for
the three months ended March 31, 2013, the Company reported a net
loss of $123.2 million or ($0.41) per diluted share. 
Paul Bragg, Chairman and Chief Executive Officer, commented, "We are
pleased to announce another strong quarter of operating results. We
also made good initial progress on our debt reduction plan, paying
down almost $30 million during the quarter and we remain on track to
reach our goal for 2014 given our contracted backlog and high
operating efficiency across the fleet."  
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)                  
                                (Unaudited)                                 
                                                                            
                                                       Three Months Ended   
                                                            March 31,       
                                                     ---------------------- 
                                                        2014        2013    
                                                     ----------  ---------- 
Revenues                                                                    
  Contract drilling services                         $  214,932  $  134,664 
  Management fees                                         4,582       3,198 
  Reimbursables                                          12,951       9,139 
                                                     ----------  ---------- 
    Total revenues                                      232,465     147,001 
                                                     ----------  ---------- 
Operating costs and expenses                                                
  Operating costs                                       101,722      75,317 
  General and administrative                              8,115       7,427 
  Depreciation                                           31,625      24,861 
                                                     ----------  ---------- 
    Total operating costs and expenses                  141,462     107,605 
                                                     ----------  ---------- 
Income from operations                                   91,003      39,396 
Other income (expense)                                                      
  Interest income                                            13          96 
  Interest expense and other financing charges          (54,487)    (59,662)
  Loss on debt extinguishment                              (106)    (98,327)
  Other, net                                                779         901 
                                                     ----------  ---------- 
    Total other income (expense)                        (53,801)   (156,992)
                                                     ----------  ---------- 
Income (loss) before income taxes                        37,202    (117,596)
Income tax provision                                     12,378       5,605 
                                                     ----------  ---------- 
Net income (loss)                                    $   24,824  $ (123,201)
                                                     ==========  ========== 
                                                                            
Earnings (loss) per share                                                   
  Basic                                              $     0.08  $    (0.41)
  Diluted                                            $     0.07  $    (0.41)
                                                                            
                                                                            
                                                                            
                          Vantage Drilling Company                          
                        Supplemental Operating Data                         
               (Unaudited, in thousands, except percentages)                
                                                                            
                                                        Three Months Ended  
                                                             March 31,      
                                                       -------------------- 
                                                          2014       2013   
                                                       ---------  --------- 
Operating costs and expenses                                                
Jackups                                                $  23,760  $  21,845 
Deepwater                                                 55,810     36,723 
Operations support                                        10,759      7,984 
Reimbursables                                             11,393      8,765 
                                                       ---------  --------- 
                                                       $ 101,722  $  75,317 
                                                       ---------  --------- 
                                                                            
Utilization                                                                 
Jackups                                                    100.0%      98.4%
Deepwater                                                   96.5%      88.5%
                                                                            
                                                                            
                                                                            
                          Vantage Drilling Company                          
                         Consolidated Balance Sheet                         
                (In thousands, except par value information)                
                                                                            
                                                   March 31,   December 31, 
                                                     2014          2013     
                                                 ------------  ------------ 
                                                  (Unaudited)               
                     ASSETS                                                 
Current assets                                                              
  Cash and cash equivalents                      $     65,261  $     54,686 
  Restricted cash                                          --         2,125 
  Trade receivables                                   216,639       168,654 
  Inventory                                            58,875        55,804 
  Prepaid expenses and other current assets            20,456        23,717 
                                                 ------------  ------------ 
    Total current assets                              361,231       304,986 
                                                 ------------  ------------ 
Property and equipment                                                      
  Property and equipment                            3,482,799     3,472,407 
  Accumulated depreciation                           (313,334)     (281,759)
                                                 ------------  ------------ 
    Property and equipment, net                     3,169,465     3,190,648 
                                                 ------------  ------------ 
Other assets                                                                
  Investment in joint venture                          32,374        32,482 
  Other assets                                         96,018       100,027 
                                                 ------------  ------------ 
    Total other assets                                128,392       132,509 
                                                 ------------  ------------ 
Total assets                                     $  3,659,088  $  3,628,143 
                                                 ============  ============ 
                                                                            
      LIABILITIES AND SHAREHOLDERS' EQUITY                                  
Current liabilities                                                         
  Accounts payable                               $     62,906  $     66,860 
  Accrued liabilities                                 133,245        97,481 
  Current maturities of long-term debt and                                  
   revolving credit agreement                          53,500        63,500 
                                                 ------------  ------------ 
    Total current liabilities                         249,651       227,841 
                                                 ------------  ------------ 
Long-term debt, net of discount of $36,486 and                              
 $39,325                                            2,835,514     2,852,050 
Other long-term liabilities                            41,502        42,796 
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; 305,997 and 304,101 shares                            
   issued and outstanding                                 306           304 
  Additional paid-in capital                          899,067       896,928 
  Accumulated deficit                                (366,952)     (391,776)
                                                 ------------  ------------ 
    Total shareholders' equity                        532,421       505,456 
                                                 ------------  ------------ 
Total liabilities and shareholders' equity       $  3,659,088  $  3,628,143 
                                                 ============  ============ 
                                                                            
                                                                            
                                                                            
                          Vantage Drilling Company                          
                    Consolidated Statement of Cash Flows                    
                               (In thousands)                               
                                (Unaudited)                                 
                                               Three Months Ended March 31, 
                                               ---------------------------- 
                                                    2014           2013     
                                               -------------  ------------- 
CASH FLOWS FROM OPERATING ACTIVITIES                                        
Net income (loss)                              $      24,824  $    (123,201)
Adjustments to reconcile net income (loss) to                               
 net cash provided by (used in) operating                                   
 activities:                                                                
  Depreciation expense                                31,625         24,861 
  Amortization of debt financing costs                 2,964          3,995 
  Amortization of debt discount (premium)              2,839            (97)
  Non-cash loss on debt extinguishment                   106          6,070 
  Share-based compensation expense                     2,141          2,069 
  Deferred income tax expense (benefit)                  (57)           778 
  Equity in loss of joint venture                        108            133 
  Loss on disposal of assets                             104              1 
Changes in operating assets and liabilities:                                
  Restricted cash                                      2,125             -- 
  Trade receivables                                  (47,985)        17,521 
  Inventory                                           (3,071)        (4,319)
  Prepaid expenses and other current assets            3,318          3,963 
  Other assets                                         1,021            290 
  Accounts payable                                    (3,954)        (9,713)
  Accrued liabilities and other long-term                                   
   liabilities                                        33,296        (42,762)
                                               -------------  ------------- 
    Net cash provided by (used in) operating                                
     activities                                       49,404       (120,411)
                                               -------------  ------------- 
CASH FLOWS FROM INVESTING ACTIVITIES                                        
  Additions to property and equipment                 (9,371)       (15,135)
  Proceeds from sale of property and equipment            --              2 
                                               -------------  ------------- 
    Net cash used in investing activities             (9,371)       (15,133)
                                               -------------  ------------- 
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                        (19,374)    (1,006,249)
  Proceeds from or (repayment of) revolving                                 
   credit agreement, net                             (10,000)            -- 
  Debt issuance costs                                    (84)       (23,683)
                                               -------------  ------------- 
    Net cash provided by (used in) financing                                
     activities                                      (29,458)        89,818 
                                               -------------  ------------- 
    Net increase (decrease) in cash and cash                                
     equivalents                                      10,575        (45,726)
  Cash and cash equivalents--beginning of                                   
   period                                             54,686        502,726 
                                               -------------  ------------- 
  Cash and cash equivalents--end of period     $      65,261  $     457,000 
                                               =============  ============= 

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