Exhibit 99.1
Vantage Drilling Company Reports First Quarter 2009 Results
HOUSTON, TX -- (MARKET WIRE) -- 05/08/2009 -- Vantage Drilling Company ("Vantage") (NYSE Alternext US: VTG-U) (NYSE Alternext US: VTG) (NYSE Alternext US: VTG-WS) reports net income of $2.4 million or $0.03 per diluted share for the three months ended March 31, 2009 as compared to net income of $1.2 million or $0.03 per diluted share for the three months ended March 31, 2008.
Paul Bragg, President and Chief Executive Officer, commented, "The first quarter of 2009 was another period of milestone achievement for Vantage. Our first rig, the Emerald Driller, commenced operations in early February with outstanding start up performance. We were able to book significant additions to our contractual backlog and to increase the fleet of high-specification assets under our management and control. Summarizing several important accomplishments are the following:
-- Emerald Driller operating in Thailand achieved 99% plus productive time in the quarter.
-- Launching of Aquamarine and Topaz Drillers.
-- Received notification of early June 2009 delivery of Sapphire Driller.
-- Signed $1.1 Billion 5-year contract for Platinum Explorer drillship.
-- Signed $1.6 Billion, 8-year contract for Titanium Explorer drillship.
-- Signed agreement to provide construction supervision, market and operate deepwater semi-submersibles."
Vantage will conduct a call at 11:00 AM Eastern Time on Friday, May 08, 2009 to discuss results and developments for the first quarter 2009. To access the conference call, U.S. callers may dial toll free (877) 723-9502 and international callers may dial (719) 325-4765. The pass code will be 4798745. Please call ten minutes ahead of time to ensure proper connection. A replay of the conference call will be available for two weeks following the call and can be accessed by dialing (888) 203-1112 for U.S. callers and (719) 457-0820 for international callers. The access code for the replay is 4798745.
Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with one Baker Marine Pacific Class 375 ultra-premium jackup drilling rig operating, and three such jackups and an ultra deepwater drillship, the Platinum Explorer, currently under development. Vantage is also providing management services to an affiliate for two other ultra-deepwater drillships and to Sea Dragon Offshore Limited for an ultra-deepwater semi-submersible.
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, | |
| | | 2009 | | | 2008 | |
| Revenues | | | | | | |
| Contract drilling services | | $ | 9,787 | | | $ | — | |
| Management fees | | | 4,142 | | | | — | |
| Reimbursables | | | 367 | | | | — | |
| Total revenues | | | 14,296 | | | | — | |
| Operating costs and expenses | | | | | | | | |
| Operating costs | | | 5,640 | | | | — | |
| General and administrative | | | 3,436 | | | | 720 | |
| Depreciation | | | 1,656 | | | | 6 | |
| Total operating expenses | | | 10,732 | | | | 726 | |
| Income (loss) from operations | | | 3,564 | | | | (726 | ) |
| Other income (expense) | | | | | | | | |
| Interest income | | | 8 | | | | 2,505 | |
| Interest expense | | | (748 | ) | | | — | |
| Other income | | | 86 | | | | — | |
| Total other income (expense) | | | (654 | ) | | | 2,505 | |
| Income before income taxes | | | 2,910 | | | | 1,779 | |
| Income tax provision | | | 552 | | | | 608 | |
| Net income | | $ | 2,358 | | | $ | 1,171 | |
| | | | | | | | | |
| Earnings Per Share | | | | | | | | |
| Basic | | $ | 0.03 | | | $ | 0.03 | |
| Diluted | | $ | 0.03 | | | $ | 0.02 | |
Vantage Drilling Company
Consolidated Balance Sheet
(In thousands, except par value information)
| | | March 31, | | | December 31, | |
| | | 2009 | | | 2008 | |
| | | (Unaudited) | | | | |
| ASSETS | | | | | | |
| Current assets | | | | | | |
| Cash and cash equivalents | | $ | 12,096 | | | $ | 16,557 | |
| Restricted cash | | | 1,912 | | | | 1,700 | |
| Trade receivables, net | | | 12,872 | | | | 3,186 | |
| Inventory | | | 3,016 | | | | — | |
| Prepaid expenses and other current assets | | | 1,643 | | | | 2,077 | |
| Total current assets | | | 31,539 | | | | 23,520 | |
| Property and equipment | | | | | | | | |
| Property and equipment | | | 648,692 | | | | 631,008 | |
| Accumulated depreciation | | | (1,767 | ) | | | (112 | ) |
| Property and equipment, net | | | 646,925 | | | | 630,896 | |
| Other assets | | | 18,707 | | | | 10,867 | |
| Total assets | | $ | 697,171 | | | $ | 665,283 | |
| | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | |
| Current liabilities | | | | | | | | |
| Accounts payable | | $ | 5,810 | | | $ | 3,827 | |
| Accrued liabilities | | | 18,815 | | | | 14,766 | |
| Short-term debt | | | 14,775 | | | | 11,239 | |
| Current maturities of long-term debt | | | 13,410 | | | | 6,000 | |
| Total current liabilities | | | 52,810 | | | | 35,832 | |
| Long–term debt | | | 136,411 | | | | 133,000 | |
| Commitments and contingencies | | | — | | | | — | |
| Shareholders’ equity | | | | | | | | |
| Preferred shares, $0.001 par value, 1,000 shares authorized; none issued or outstanding | | | — | | | | — | |
| Ordinary shares, $0.001 par value, 400,000 shares authorized; 81,226 and 75,708 shares issued and outstanding | | | 81 | | | | 76 | |
| Additional paid-in capital | | | 551,467 | | | | 542,331 | |
| Accumulated deficit | | | (43,598 | ) | | | (45,956 | ) |
| Total shareholders’ equity | | | 507,950 | | | | 496,451 | |
| Total liabilities and shareholders’ equity | | $ | 697,171 | | | $ | 665,283 | |
Vantage Drilling Company
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
| | | Three Months Ended | |
| | | March 31, | |
| | | 2009 | | | 2008 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | |
| Net income | | $ | 2,358 | | | $ | 1,171 | |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | | | | | | | | |
| Depreciation expense | | | 1,656 | | | | 6 | |
| Amortization of debt financing costs | | | 205 | | | | — | |
| Share-based compensation expense | | | 1,142 | | | | — | |
| Deferred income tax benefit | | | — | | | | (245 | ) |
| Changes in operating assets and liabilities: | | | | | | | | |
| Restricted cash | | | (212 | ) | | | (500 | ) |
| Trade receivables, net | | | (9,686 | ) | | | — | |
| Inventory | | | (3,016 | ) | | | — | |
| Prepaid expenses and other current assets | | | 434 | | | | 15 | |
| Other assets | | | (45 | ) | | | — | |
| Accounts payable | | | 1,983 | | | | 22 | |
| Accrued liabilities | | | 4,049 | | | | 524 | |
| Net cash provided by operating activities | | | (1,132 | ) | | | 993 | |
| CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | |
| Additions to property and equipment | | | (17,685 | ) | | | (7 | ) |
| Deferred acquisition costs | | | — | | | | (92 | ) |
| Restricted cash held in trust account | | | — | | | | (2,102 | ) |
| Net cash provided by (used in) investing activities | | | (17,685 | ) | | | (2,201 | ) |
| CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | |
| Proceeds from borrowings under credit agreement | | | 10,821 | | | | — | |
| Proceeds from notes payable-affiliates | | | 4,000 | | | | — | |
| Repayment of notes payable | | | (465 | ) | | | — | |
| Advances from stockholders of OGIL | | | — | | | | 2,000 | |
| Repayments of advances from stockholders of OGIL | | | — | | | | (538 | ) |
| Net cash provided by financing activities | | | 14,356 | | | | 1,462 | |
| Net increase (decrease) in cash and cash equivalents | | | (4,461 | ) | | | 254 | |
| Cash and cash equivalents—beginning of period | | | 16,557 | | | | 1,263 | |
| Cash and cash equivalents—end of period | | $ | 12,096 | | | $ | 1,517 | |
Public & Investor Relations Contact:
Paul A. Bragg
Chairman & Chief Executive Officer
Vantage Drilling Company
(281) 404-4700
