HOUSTON, TX -- (Marketwire) -- 02/15/13 -- Vantage Drilling Company ("Vantage" or the "Company") (NYSE MKT: VTG) reports a net loss for the three months ended December 31, 2012 of $11.5 million or ($0.04) per diluted share excluding approximately $122.1 million of charges for the early retirement of debt, as compared to a net loss of $9.3 million or ($0.03) per diluted share for the three months ended December 31, 2011. Including the charges for the early retirement of debt, the Company reports a net loss of $133.6 million or ($.45) per diluted share for the three months ended December 31, 2012.
Net loss for the fiscal year ended December 31, 2012 was $20.7 million or ($0.07) per share excluding approximately $124.6 million of charges for the early retirement of debt as compared to a loss of $54.8 million or ($.19) per share in the prior year period, excluding approximately $25.2 million of refinancing charges. Including the refinancing charges, Vantage reported a net loss $145.3 million or ($0.50) per diluted share for the year ended December 31, 2012 as compared to a net loss of $80.0 million or $(0.28) per diluted share for the year ended December 31, 2011.
Paul Bragg, Chairman and Chief Executive Officer, commented, "2012 was a year of significant achievement for Vantage as we grew our fleet with the acquisition of the Titanium Explorer and strengthened our balance sheet by refinancing nearly half of our high cost debt at significantly lower rates."
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 the ultra-deepwater drillship, the Platinum 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)
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------- ----------------------
2012 2011 2012 2011
---------- ---------- ---------- ----------
(Unaudited) (Unaudited)
Revenues
Contract drilling services $ 113,696 $ 92,197 $ 423,897 $ 366,844
Management fees 1,961 3,228 6,605 13,727
Reimbursables 7,307 26,111 40,970 105,258
---------- ---------- ---------- ----------
Total revenues 122,964 121,536 471,472 485,829
---------- ---------- ---------- ----------
Operating costs and expenses
Operating costs 58,731 72,411 230,089 284,881
General and administrative 7,416 5,849 26,002 26,317
Depreciation 19,228 16,352 68,747 64,477
---------- ---------- ---------- ----------
Total operating costs
and expenses 85,375 94,612 324,838 375,675
---------- ---------- ---------- ----------
Income from operations 37,589 26,924 146,634 110,154
Other income (expense)
Interest income 42 29 90 96
Interest expense and other
financing charges (44,600) (36,931) (149,118) (154,897)
Loss on debt
extinguishment (122,071) - (124,599) (25,196)
Other, net (205) (589) 595 1,324
---------- ---------- ---------- ----------
Total other income
(expense) (166,834) (37,491) (273,032) (178,673)
---------- ---------- ---------- ----------
Loss before income taxes (129,245) (10,567) (126,398) (68,519)
Income tax provision
(benefit) 4,365 (1,221) 18,906 11,432
---------- ---------- ---------- ----------
Net loss $ (133,610) $ (9,346) $ (145,304) $ (79,951)
========== ========== ========== ==========
Loss per share
Basic $ (0.45) $ (0.03) $ (0.50) $ (0.28)
Diluted $ (0.45) $ (0.03) $ (0.50) $ (0.28)
Vantage Drilling Company
Consolidated Balance Sheet
(In thousands, except par value information)
December 31,
----------------------------
2012 2011
------------- -------------
ASSETS
Current assets
Cash and cash equivalents $ 502,726 $ 110,031
Restricted cash 3,515 7,028
Trade receivables 119,452 100,908
Inventory 37,944 24,376
Prepaid expenses and other current assets 25,208 16,909
------------- -------------
Total current assets 688,845 259,252
------------- -------------
Property and equipment
Property and equipment 2,893,837 1,913,596
Accumulated depreciation (176,331) (108,521)
------------- -------------
Property and equipment, net 2,717,506 1,805,075
------------- -------------
Other assets
Investment in joint venture 31,320 -
Other assets 92,536 58,173
------------- -------------
Total other assets 123,856 58,173
------------- -------------
Total assets $ 3,530,207 $ 2,122,500
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 50,909 $ 46,362
Accrued liabilities 123,484 103,809
Current maturities of long-term debt 31,250 -
------------- -------------
Total current liabilities 205,643 150,171
------------- -------------
Long-term debt, net of discount of $11,940 and
$38,572 2,710,559 1,246,428
Other long-term liabilities 45,520 29,755
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; 299,647 and 291,241
shares issued and outstanding 299 291
Additional paid-in capital 878,137 860,502
Accumulated deficit (309,951) (164,647)
------------- -------------
Total shareholders' equity 568,485 696,146
------------- -------------
Total liabilities and shareholders' equity $ 3,530,207 $ 2,122,500
============= =============
Vantage Drilling Company
Consolidated Statement of Cash Flows
(In thousands)
Year Ended December 31,
----------------------------
2012 2011
------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (145,304) $ (79,951)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation expense 68,747 64,477
Amortization of debt financing costs 16,930 8,653
Non-cash loss on debt extinguishment 9,546 3,532
Equity in loss of joint venture 49 -
Share-based compensation expense 7,073 5,946
Accretion of long-term debt - 2,582
Amortization of debt discount (premium) (3,828) 9,332
Deferred income tax expense (benefit) 3,785 (3,984)
Loss on disposal of assets 1,321 226
Changes in operating assets and liabilities:
Restricted cash 3,513 21,977
Trade receivables (52,207) (50,719)
Inventory (13,568) (4,616)
Prepaid expenses and other current assets (9,724) (1,549)
Other assets 318 (3,069)
Accounts payable 4,546 14,030
Accrued liabilities (41,762) 29,006
------------- -------------
Net cash provided by (used in) operating
activities (150,565) 15,873
------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment (874,117) (144,800)
Investment in joint venture (31,000) -
Proceeds from sale of property and equipment - 464
------------- -------------
Net cash used in investing activities (905,117) (144,336)
------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of senior secured
notes, net 1,987,000 240,750
Proceeds from issuance of term loan 490,000 -
Proceeds from the issuance of senior
convertible notes 50,000 -
Repayment of long-term debt (1,006,251) (109,716)
Debt issuance costs (72,372) (12,983)
------------- -------------
Net cash provided by financing activities 1,448,377 118,051
------------- -------------
Net increase (decrease) in cash and cash
equivalents 392,695 (10,412)
Cash and cash equivalents-beginning of year 110,031 120,443
------------- -------------
Cash and cash equivalents-end of year $ 502,726 $ 110,031
============= =============
Public & Investor Relations Contact:
Paul A. Bragg
Chairman & Chief Executive Officer
Vantage Drilling Company
(281) 404-4700