Vantage Drilling Company Reports Fourth Quarter and Full Year 2013 Results
HOUSTON, TX--(MARKET WIRE)-February 28, 2014 -- 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, thePlatinum Explorer, theTitanium Explorer and theTungsten Explorer, as well as an additional ultra-deepwater drillship, theCobalt 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.
Public & Investor Relations Contact:
Paul A. Bragg
Chairman & Chief Executive Officer
Vantage Drilling Company
(281) 404-4700
Vantage Drilling Company |
Consolidated Statement of Operations |
(In thousands, except per share amounts) |
| | | | | | | | | |
| | | Three Months Ended December 31, | | Twelve Months Ended 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 December 31, | | Twelve Months Ended 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 |
| | | | | |
