Vantage Drilling CO - FORM 8-K - EX-99 - PRESS RELEASE DATED NOVEMBER 7, 2013. - November 7, 2013

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Vantage Drilling Company Reports Third Quarter 2013 Results

HOUSTON, TX--(MARKET WIRE)-November 7, 2013 -- Vantage Drilling Company ("Vantage" or the "Company") (NYSE MKT: VTG) reports a net income for the three months ended September 30, 2013 of $6.8 million or $0.02 per diluted share as compared to a net loss of $538,000 or $0.00 per diluted share for the three months ended September 30, 2012. The results for the three months ended September 30, 2013 includes a charge of approximately $5.0 million for deferred mobilization costs associated with re-contracting the Sapphire Driller and approximately $1.6 million reduction of estimated taxes.

For the nine months ended September 30, 2013, Vantage reports a net loss of $13.8 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 $11.7 million or ($0.04) per diluted share for the nine months ended September 30, 2012. Including the charges for the early retirement of debt, the company reported a loss of $112.1 million or ($0.37) per diluted share for the nine months ended September 30, 2013.

Paul Bragg, Chairman and Chief Executive Officer, commented, "The third quarter marked another important milestone for Vantage as we successfully commenced operations on our third drillship, Tungsten Explorer, in Southeast Asia. With the Sapphire Driller commencing its new eighteen month contract in Gabon this week, we now have contribution from seven rigs for the first time."

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.

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)

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2013

2012

2013

2012

Revenues

Contract drilling services

$ 158,887

$ 105,521

$ 449,354

$ 310,202

Management fees

3,903

966

9,511

4,644

Reimbursables

13,095

5,047

34,658

33,662

Total revenues

175,885

111,534

493,523

348,508

Operating costs and expenses

Operating costs

84,132

52,004

236,566

171,358

General and administrative

8,891

6,622

23,372

18,586

Depreciation

24,886

16,575

74,727

49,519

Total operating costs and expenses

117,909

75,201

334,665

239,463

Income from operations

57,976

36,333

158,858

109,045

Other income (expense)

Interest income

26

15

195

48

Interest expense and other financing charges

(47,379)

(31,583)

(158,296)

(104,518)

Loss on debt extinguishment

-

(2,528)

(98,327)

(2,528)

Other, net

305

(61)

2,195

800

Total other income (expense)

(47,048)

(34,157)

(254,233)

(106,198)

Income (loss) before income taxes

10,928

2,176

(95,375)

2,847

Income tax provision

4,084

2,714

16,766

14,541

Net income (loss)

$ 6,844

$ (538)

$(112,141)

$ (11,694)

 

Earnings (loss) per share

Basic

$ 0.02

$ 0.00

$ (0.37)

$ (0.04)

Diluted

$ 0.02

$ 0.00

$ (0.37)

$ (0.04)

 

 

Vantage Drilling Company

Consolidated Balance Sheet

(In thousands, except par value information)

September 30,

December 31,

2013

2012

(Unaudited)

ASSETS

Current assets

Cash and cash equivalents

$ 67,729

$ 502,726

Restricted cash

3,353

3,515

Trade receivables

144,915

119,452

Inventory

53,090

37,944

Prepaid expenses and other current assets

12,828

25,208

Total current assets

281,915

688,845

Property and equipment

Property and equipment

3,457,772

2,893,837

Accumulated depreciation

(250,571)

(176,331)

Property and equipment, net

3,207,201

2,717,506

Other assets

Investment in joint venture

32,650

31,320

Other assets

96,010

92,536

Total other assets

128,660

123,856

Total assets

$ 3,617,776

$ 3,530,207

 

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities

Accounts payable

$ 56,624

$ 50,909

Accrued liabilities

120,090

123,484

Revolving credit agreement

10,000

-

Current maturities of long-term debt

53,500

31,250

Total current liabilities

240,214

205,643

Long-term debt, net of discount of $42,243 and $11,940

2,862,507

2,710,559

Other long-term liabilities

41,548

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; 303,644 and 299,647 shares issued and outstanding

303

299

Additional paid-in capital

895,296

878,137

Accumulated deficit

(422,092)

(309,951)

Total shareholders' equity

473,507

568,485

Total liabilities and shareholders' equity

$ 3,617,776

$ 3,530,207

 

 

Vantage Drilling Company

Consolidated Statement of Cash Flows

(In thousands)

(Unaudited)

Nine Months Ended September 30,

2013

2012

CASH FLOWS FROM OPERATING ACTIVITIES

Net loss

$ (112,141)

$ (11,694)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation expense

74,727

49,519

Amortization of debt financing costs

9,425

12,617

Amortization of debt discount (premium)

4,605

(3,473)

Non-cash loss on debt extinguishment

6,070

2,528

Share-based compensation expense

5,431

5,808

Deferred income tax expense

858

2,978

Equity in loss of joint venture

345

-

Loss on disposal of assets

114

502

Changes in operating assets and liabilities:

Restricted cash

162

1,150

Trade receivables

(25,463)

(9,382)

Inventory

(15,146)

(9,948)

Prepaid expenses and other current assets

11,709

1,509

Other assets

(6,866)

2,074

Accounts payable

5,715

14,090

Accrued liabilities and other long-term liabilities

(25,146)

(105,126)

Net cash used in operating activities

(65,601)

(46,848)

CASH FLOWS FROM INVESTING ACTIVITIES

Additions to property and equipment

(548,621)

(848,939)

Proceeds from sale of property and equipment

2

-

Net cash used in investing activities

(548,619)

(848,939)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issuance of senior secured notes, net

775,000

837,000

Proceeds from issuance of term loan, net

344,750

-

Proceeds from issuance of senior convertible notes

100,000

50,000

Repayment of long-term debt

(1,020,499)

-

Proceeds from revolving credit agreement, net

10,000

-

Debt issuance costs

(30,028)

(38,768)

Net cash provided by financing activities

179,223

848,232

Net decrease in cash and cash equivalents

(434,997)

(47,555)

Cash and cash equivalents-beginning of period

502,726

110,031

Cash and cash equivalents-end of period

$ 67,729

$ 62,476

Vantage Drilling CO Reports