HOUSTON, TX--(Marketwire - March 16, 2010) - Vantage Drilling Company ("Vantage") (
Paul Bragg, President and Chief Executive Officer, commented, "The Company took giant strides in 2009 and thereafter, as we deployed all four of our new jackup rigs. Our first deepwater rig, Platinum Explorer, is on track for on-time delivery in November 2010."
Early stage risks have been greatly diminished with the completion of jackup construction, financing and contracting. Our operational and safety performance have also been exceptional.
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, the Platinum Explorer, currently under development. Vantage is also providing management services to an affiliate for two other ultra-deepwater drillships and to Sea Dragon for two ultra-deepwater semi-submersibles.
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
December 31,
------------------------
2009 2008
----------- -----------
Revenues
Contract drilling services $ 22,982 $ -
Management fees 3,701 825
Reimbursables 11,875 88
----------- -----------
Total revenues 38,558 913
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Operating costs and expenses
Operating costs, excluding impairment and
termination costs 30,678 3,123
General and administrative 4,550 3,470
Depreciation 4,295 78
Impairment and termination costs - 38,286
----------- -----------
Total operating expenses 39,523 44,957
----------- -----------
Income (loss) from operations (965) (44,044)
Other income (expense)
Interest income 10 6
Interest expense (4,174) (56)
Other income 293 86
----------- -----------
Total other income (expense) (3,871) 36
----------- -----------
Income (loss) before income taxes (4,836) (44,008)
Income tax provision (benefit) (562) (540)
----------- -----------
Net income (loss) $ (4,274) $ (43,468)
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Earnings per share
Basic $ (0.02) $ (0.57)
Diluted $ (0.02) $ (0.57)
Vantage Drilling Company
Consolidated Statement of Operations
(In thousands, except per share amounts)
Year Ended December 31,
-------------------------------------
2009 2008 2007
----------- ----------- -----------
Revenues
Contract drilling services $ 69,919 $ - $ -
Management fees 18,830 825 -
Reimbursables 22,744 88 -
----------- ----------- -----------
Total revenues 111,493 913 -
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Operating costs and expenses
Operating costs, excluding
impairment and termination costs 66,228 5,365 -
General and administrative 15,690 9,334 937
Depreciation 11,218 101 10
Impairment and termination costs - 38,286 -
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Total operating expenses 93,136 53,086 947
----------- ----------- -----------
Income (loss) from operations 18,357 (52,173) (947)
Other income (expense)
Interest income 23 4,095 7,699
Interest expense (8,178) (56) -
Other income 609 86 -
----------- ----------- -----------
Total other income (expense) (7,546) 4,125 7,699
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Income (loss) before income taxes 10,811 (48,048) 6,752
Income tax provision (benefit) 1,972 (670) 2,299
----------- ----------- -----------
Net income (loss) $ 8,839 $ (47,378) $ 4,453
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Earnings per share
Basic $ 0.07 $ (0.78) $ 0.16
Diluted $ 0.07 $ (0.78) $ 0.14
Vantage Drilling Company
Consolidated Balance Sheet
(In thousands, except par value information)
December 31,
------------------------
2009 2008
----------- -----------
ASSETS
Current assets
Cash and cash equivalents $ 15,992 $ 16,557
Restricted cash 28,863 1,700
Trade receivables 17,536 3,186
Inventory 10,789 -
Prepaid expenses and other current assets 8,040 2,077
----------- -----------
Total current assets 81,220 23,520
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Property and Equipment
Property and equipment 899,541 631,008
Accumulated depreciation (11,329) (112)
----------- -----------
Property and equipment, net 888,212 630,896
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Other Assets
Investment in joint venture 120,306 -
Other assets 29,441 10,867
----------- -----------
Total other assets 149,747 10,867
----------- -----------
Total assets $ 1,119,179 $ 665,283
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 15,931 $ 3,827
Accrued liabilities 14,285 14,766
Short-term debt 17,827 11,239
Current maturities of long-term debt 16,000 6,000
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Total current liabilities 64,043 35,832
----------- -----------
Long-term debt, net of discount of $4,021 378,078 133,000
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; 187,277 and 75,708 shares
issued and outstanding 187 76
Additional paid-in capital 714,486 542,331
Accumulated deficit (37,117) (45,956)
Accumulated other comprehensive loss (498) -
----------- -----------
Total shareholders' equity 677,058 496,451
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Total liabilities and shareholders' equity $ 1,119,179 $ 665,283
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Vantage Drilling Company
Consolidated Statement of Cash Flows
(In thousands)
Year Ended December 31,
-------------------------------------
2009 2008 2007
----------- ----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 8,839 $ (47,378) $ 4,453
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Depreciation expense 11,218 101 10
Amortization of debt financing
costs 1,486 513 -
Share-based compensation expense 5,030 2,420 -
Accretion of long-term debt 1,638 - -
Amortization of senior notes
discount 29 - -
Deferred income tax benefit 746 (2,059) (311)
Write-off of asset value, net - 28,286 -
Changes in operating assets and
liabilities:
Restricted cash (27,163) (1,700) -
Trade receivables (14,350) (3,277) -
Inventory (10,789) - -
Prepaid expenses and other current
assets (5,963) (1,618) 93
Other assets (406) - -
Accounts payable 12,104 3,765 62
Accrued liabilities 9,021 13,877 889
Short-term debt 4,942 1,240 -
----------- ----------- -----------
Net cash used in operating
activities (3,618) (5,830) 5,196
----------- ----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of assets - (213,397) -
Additions to property and
equipment (337,444) (170,775) (122)
Investment in joint venture (157,404) - -
Deferred acquisition costs - - (757)
Restricted cash held in trust
account - 273,109 (273,109)
----------- ----------- -----------
Net cash used in investing
activities (494,848) (111,063) (273,988)
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CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings under
credit agreements 141,821 139,000 -
Proceeds from the issuance of
senior secured notes, net of
discount of $4,021 130,950 - -
Repayment of long-term debt (19,360) - -
Proceeds from issuance of ordinary
shares in private placement, net 24,953 - -
Proceeds from issuance of ordinary
shares in public offering, net 80,291 - -
Proceeds from warrant exercise in
connection with joint venture 150,000 - -
Proceeds from short-term notes
payable-shareholders 4,000 - -
Repayment of short-term debt (2,354) - -
Debt issuance costs (12,400) (8,533) -
Advances from stockholders of OGIL - 3,300 -
Repayments of advances from
stockholders of OGIL - (3,300) -
Proceeds from issuance of ordinary
shares and warrants in private
placement - - 6,000
Proceeds from issuance of ordinary
shares and warrants to public
stockholders - - 255,930
Proceeds from deferred
underwriters fee - - 8,280
Repayment of deferred underwriters
fee - (8,280) -
Proceeds from notes
payable-shareholders - 10,000 86
Repayment of notes
payable-shareholders - - (275)
----------- ----------- -----------
Net cash provided by financing
activities 497,901 132,187 270,021
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Net increase in cash and cash
equivalents (565) 15,294 1,229
Cash and cash
equivalents--beginning of period 16,557 1,263 34
----------- ----------- -----------
Cash and cash equivalents--end of
period $ 15,992 $ 16,557 $ 1,263
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Contact Information: Contact: Public & Investor Relations Contact: Paul A. Bragg Chairman & Chief Executive Officer Vantage Drilling Company (281) 404-4700