Vantage Drilling Company Reports First Quarter 2011 Results
HOUSTON, TX--(MARKET WIRE)—May 6, 2011 -- Vantage Drilling Company ("Vantage") (AMEX: VTG-U) (AMEX:VTG) (AMEX: VTG-WS) reports a net loss of ($18.7) million or ($0.06) per diluted share for the three months ended March 31, 2011 as compared to a net loss of ($13.0) million or ($.05) per diluted share in the fourth quarter of 2010 and net income of $6.0 million or $0.03 per diluted share for the three months ended March 31, 2010.
Revenue for the three months ended March 31, 2011 was $124.6 million as compared to revenue of $84.9 million in the fourth quarter of 2010 and $58.3 million for the three months ended March 31, 2010. Income from operations for the quarter was $24.3 million as compared to $6.7 million in the preceding quarter and $15.6 million in the prior year. The increase in revenue and income from operations for the quarter was driven by thePlatinum Explorer which commenced operations on a five year contract in India in December 2010 partially offset by theSapphire Driller andAquamarine Driller having days off contract days during the quarter.
As we have previously announced theSapphire Driller’s contract in theCôte d'Ivoire had a force majeure claim resulting from the civil unrest and theAquamarine Driller’s customer in the Philippines exercised the early termination provisions of the contract in order to reassess their drilling program. TheSapphire Driller andAquamarine Driller have been mobilized to Cameroon and Malaysia, respectively and began new contracts in early March.
Paul Bragg, Chairman and Chief Executive Officer, commented, “This was a landmark quarter for Vantage as we now have all of our rigs operating. We are extremely pleased with the high-level of productive time across the fleet as thePlatinum Explorer achieved over 93% productive time during its first quarter of operations and the jackup fleet achieve over 99% productive time for the quarter while on contract.”
Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs operating, and an ultra deepwater drillship, thePlatinum Explorer. Vantage is also providing management services for four other ultra-deepwater drillships.
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.
Public & Investor Relations Contact:
| Paul A. Bragg Chairman & Chief Executive Officer Vantage Drilling Company (281) 404-4700 |
| Vantage Drilling Company | ||||||||
| Consolidated Balance Sheet | ||||||||
| (In thousands, except par value information) | ||||||||
| March 31, | December 31, | |||||||
| 2011 | 2010 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 51,709 | $ | 120,443 | ||||
| Restricted cash | 27,699 | 29,004 | ||||||
| Trade receivables | 86,917 | 50,190 | ||||||
| Inventory | 21,714 | 19,760 | ||||||
| Prepaid expenses and other current assets | 10,940 | 11,472 | ||||||
| Total current assets | 198,979 | 230,869 | ||||||
| Property and equipment | ||||||||
| Property and equipment | 1,781,926 | 1,762,844 | ||||||
| Accumulated depreciation | (60,824) | (44,712) | ||||||
| Property and equipment, net | 1,721,102 | 1,718,132 | ||||||
| Other assets | ||||||||
| Other assets | 51,424 | 54,193 | ||||||
| Total other assets | 51,424 | 54,193 | ||||||
| Total assets | $ | 1,971,505 | $ | 2,003,194 | ||||
| 2,003,1 | ||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 41,041 | $ | 32,332 | ||||
| Accrued liabilities | 51,748 | 75,159 | ||||||
| Short-term debt | 6,002 | 8,574 | ||||||
| Total current liabilities | 98,791 | 116,065 | ||||||
| Long–term debt, net of discount of $60,807 and $63,654 | 1,107,816 | 1,103,480 | ||||||
| Other long-term liabilities | 12,486 | 13,498 | ||||||
| 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, 400,000 shares authorized; | ||||||||
| 289,761 and 289,713 shares issued and outstanding | 290 | 290 | ||||||
| Additional paid-in capital | 855,471 | 854,557 | ||||||
| Accumulated deficit | (103,349) | (84,696) | ||||||
| Total shareholders’ equity | 752,412 | 770,151 | ||||||
| Total liabilities and shareholders’ equity | $ | 1,971,505 | $ | 2,003,194 | ||||
Vantage Drilling Company Consolidated Statement of Operations (In thousands, except per share amounts) (Unaudited)
| Three Months Ended March 31, | ||||||||
| 2011 | 2010 | |||||||
| Revenues | ||||||||
| Contract drilling services | $ | 86,712 | $ | 39,356 | ||||
| Management fees | 3,966 | 4,437 | ||||||
| Reimbursables | 33,911 | 14,457 | ||||||
| Total revenues | 124,589 | 58,250 | ||||||
| Operating costs and expenses | ||||||||
| Operating costs | 77,351 | 30,659 | ||||||
| General and administrative | 6,847 | 4,475 | ||||||
| Depreciation | 16,112 | 7,477 | ||||||
| Total operating expenses | 100,310 | 42,611 | ||||||
| Income from operations | 24,279 | 15,639 | ||||||
| Other income (expense) | ||||||||
| Interest income | 38 | 12 | ||||||
| Interest expense and financing charges | (41,542) | (7,985) | ||||||
| Other income | 1,480 | 612 | ||||||
| Total other expense | (40,024) | (7,361) | ||||||
| Income (loss) before income taxes | (15,745) | 8,278 | ||||||
| Income tax provision | 2,909 | 2,315 | ||||||
| Net income (loss) | $ | (18,654) | $ | 5,963 | ||||
| Earnings (loss) per share | ||||||||
| Basic | $ | (0.06) | $ | 0.03 | ||||
| Diluted | $ | (0.06) | $ | 0.03 | ||||
| Vantage Drilling Company | ||||||||
| Consolidated Statement of Cash Flows | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2011 | 2010 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | �� | |||||||
| Net income (loss) | $ | (18,654) | $ | 5,963 | ||||
| Adjustments to reconcile net income to net cash provided by | ||||||||
| (used in) operating activities: | ||||||||
| Depreciation expense | 16,112 | 7,477 | ||||||
| Amortization of debt financing costs | 1,868 | 976 | ||||||
| Share-based compensation expense | 914 | 1,526 | ||||||
| Accretion of long-term debt | 1,489 | 1,217 | ||||||
| Amortization of debt discount | 2,847 | 293 | ||||||
| Deferred income tax benefit | (252) | - | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Restricted cash | 1,305 | (9,188) | ||||||
| Trade receivables | (36,727) | (22,205) | ||||||
| Inventory | (1,954) | (1,013) | ||||||
| Prepaid expenses and other current assets | 533 | (3,304) | ||||||
| Other assets | 1,162 | (198) | ||||||
| Accounts payable | 8,709 | 1,919 | ||||||
| Accrued liabilities | (24,422) | 7,245 | ||||||
| Short-term debt | - | 904 | ||||||
| Net cash used in operating activities | (47,070) | (8,388) | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Additions to property and equipment | (19,083) | (11,934) | ||||||
| Investment in joint venture | - | (1,959) | ||||||
| Net cash used in investing activities | (19,083) | (13,893) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Repayment of long-term debt | - | (9,649) | ||||||
| Proceeds from issuance of ordinary shares in public offerings, | ||||||||
| net | - | 47,688 | ||||||
| Repayment of short-term debt | (2,572) | (1,297) | ||||||
| Debt issuance costs | (9) | (59) | ||||||
| Net cash provided by (used in) financing activities | (2,581) | 36,683 | ||||||
| Net increase (decrease) in cash and cash equivalents | (68,734) | 14,402 | ||||||
| Cash and cash equivalents—beginning of period | 120,443 | 15,992 | ||||||
| Cash and cash equivalents—end of period | $ | 51,709 | $ | 30,394 | ||||