Attached files
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| 8-K - FORM 8-K - Vantage Drilling CO | d352574d8k.htm |
Exhibit 99.1
Vantage Drilling Company Reports First Quarter 2012 Results
HOUSTON, TX—(MARKET WIRE)—May 10, 2012 — Vantage Drilling Company (“Vantage”) (AMEX:VTG) reports a net loss of $1.2 million or ($0.00) per diluted share for the three months ended March 31, 2012 as compared to a net loss of $18.7 million or ($0.06) per diluted share for the three months ended March 31, 2011.
Paul Bragg, Chairman and Chief Executive Officer, commented, “We continued our strong operating performance during the quarter. And importantly, we have now completed the acquisition and delivery of our third drillship, Titanium Explorer, which is now en-route to the US Gulf of Mexico. We feel that we are in better position today than at any point in our history.”
Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with an owned fleet of four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs and two ultra-deepwater drillships, the Platinum Explorer and the Titanium Explorer, as well as an additional ultra-deepwater drillship, the Tungsten Explorer, now under construction. 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 and managed 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, | ||||||||
| 2012 | 2011 | |||||||
| Revenues |
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| Contract drilling services |
$ | 104,998 | $ | 86,754 | ||||
| Management fees |
2,722 | 3,966 | ||||||
| Reimbursables |
24,129 | 33,911 | ||||||
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| Total revenues |
131,849 | 124,631 | ||||||
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| Operating costs and expenses |
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| Operating costs |
69,324 | 77,393 | ||||||
| General and administrative |
5,260 | 6,847 | ||||||
| Depreciation |
16,572 | 16,112 | ||||||
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| Total operating expenses |
91,156 | 100,352 | ||||||
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| Income from operations |
40,693 | 24,279 | ||||||
| Other income (expense) |
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| Interest income |
12 | 38 | ||||||
| Interest expense and other financing charges |
(36,763 | ) | (41,542 | ) | ||||
| Other income |
645 | 1,480 | ||||||
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| Total other expense |
(36,106 | ) | (40,024 | ) | ||||
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| Income (loss) before income taxes |
4,587 | (15,745 | ) | |||||
| Income tax provision |
5,766 | 2,909 | ||||||
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| Net loss |
$ | (1,179 | ) | $ | (18,654 | ) | ||
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| Loss per share |
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| Basic |
$ | (0.00 | ) | $ | (0.06 | ) | ||
| Diluted |
$ | (0.00 | ) | $ | (0.06 | ) | ||
Vantage Drilling Company
Consolidated Balance Sheet
(In thousands, except par value information)
| March 31, 2012 |
December 31, 2011 |
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| (Unaudited) | ||||||||
| ASSETS |
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| Current assets |
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| Cash and cash equivalents |
$ | 56,474 | $ | 110,031 | ||||
| Restricted cash |
5,378 | 7,028 | ||||||
| Trade receivables |
113,594 | 100,908 | ||||||
| Inventory |
25,651 | 24,376 | ||||||
| Prepaid expenses and other current assets |
17,358 | 16,909 | ||||||
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| Total current assets |
218,455 | 259,252 | ||||||
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| Property and equipment |
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| Property and equipment |
1,920,029 | 1,913,596 | ||||||
| Accumulated depreciation |
(124,574 | ) | (108,521 | ) | ||||
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| Property and equipment, net |
1,795,455 | 1,805,075 | ||||||
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| Other assets |
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| Other assets |
55,671 | 58,173 | ||||||
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| Total other assets |
55,671 | 58,173 | ||||||
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| Total assets |
$ | 2,069,581 | $ | 2,122,500 | ||||
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| LIABILITIES AND SHAREHOLDERS’ EQUITY |
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| Current liabilities |
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| Accounts payable |
$ | 42,260 | $ | 46,362 | ||||
| Accrued liabilities |
57,187 | 103,809 | ||||||
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| Total current liabilities |
99,447 | 150,171 | ||||||
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| Long–term debt, net of discount of $36,635 and $38,572 |
1,248,365 | 1,246,428 | ||||||
| Other long-term liabilities |
24,549 | 29,755 | ||||||
| Commitments and contingencies |
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| Shareholders’ equity |
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| Preferred shares, $0.001 par value, 10,000 shares authorized; none issued or outstanding |
— | — | ||||||
| Ordinary shares, $0.001 par value, 400,000 shares authorized; 291,527 and 291,241 shares issued and outstanding |
292 | 291 | ||||||
| Additional paid-in capital |
862,754 | 860,502 | ||||||
| Accumulated deficit |
(165,826 | ) | (164,647 | ) | ||||
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| Total shareholders’ equity |
697,220 | 696,146 | ||||||
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| Total liabilities and shareholders’ equity |
$ | 2,069,581 | $ | 2,122,500 | ||||
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Vantage Drilling Company
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
| Three Months Ended March 31, | ||||||||
| 2012 | 2011 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES |
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| Net loss |
$ | (1,179 | ) | $ | (18,654 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: |
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| Depreciation expense |
16,572 | 16,112 | ||||||
| Amortization of debt financing costs |
2,374 | 1,868 | ||||||
| Share-based compensation expense |
2,253 | 914 | ||||||
| Accretion of long-term debt |
— | 1,489 | ||||||
| Amortization of debt discount |
1,937 | 2,847 | ||||||
| Deferred income tax expense (benefit) |
598 | (252 | ) | |||||
| Loss on disposal of assets |
3 | — | ||||||
| Changes in operating assets and liabilities: |
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| Restricted cash |
1,650 | 1,305 | ||||||
| Trade receivables |
(12,686 | ) | (36,727 | ) | ||||
| Inventory |
(1,276 | ) | (1,954 | ) | ||||
| Prepaid expenses and other current assets |
(1,489 | ) | 533 | |||||
| Other assets |
610 | 1,162 | ||||||
| Accounts payable |
(4,102 | ) | 7,761 | |||||
| Accrued liabilities |
(55,455 | ) | (26,046 | ) | ||||
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| Net cash used in operating activities |
(50,190 | ) | (49,642 | ) | ||||
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| CASH FLOWS FROM INVESTING ACTIVITIES |
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| Additions to property and equipment |
(3,328 | ) | (19,083 | ) | ||||
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| Net cash used in investing activities |
(3,328 | ) | (19,083 | ) | ||||
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| CASH FLOWS FROM FINANCING ACTIVITIES |
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| Debt issuance costs |
(39 | ) | (9 | ) | ||||
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| Net cash used in financing activities |
(39 | ) | (9 | ) | ||||
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| Net decrease in cash and cash equivalents |
(53,557 | ) | (68,734 | ) | ||||
| Cash and cash equivalents—beginning of period |
110,031 | 120,443 | ||||||
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| Cash and cash equivalents—end of period |
$ | 56,474 | $ | 51,709 | ||||
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Public & Investor Relations Contact:
Paul A. Bragg
Chairman & Chief Executive Officer
Vantage Drilling Company
(281) 404-4700