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     
Press spacebar to pause and continue. Press esc to stop.