HOUSTON, TX--(Marketwire - March 13, 2009) - Vantage Drilling Company ("Vantage") (NYSE
Alternext US: VTG-U) (
Paul Bragg, President and Chief Executive Officer, commented, "The fourth quarter 2008 concludes our history in development stage. With the start up of operation of the Emerald Driller in February 2009 and commencement of construction management contracts for several deepwater rigs, we are now generating substantial revenues and cashflows. Recent contracts secured on two drillships are outstanding achievements for us and position us with a stable base of business for many years to come. Summarizing several important accomplishments are the following:
-- Emerald Driller commenced a 2-year contract in Thailand.
-- Current operating cash flow run-rate is approximately $70 million
annually (1 jackup + construction management contracts).
-- Awarded $1.1 Billion 5-year contract for Platinum Explorer drillship
-- Awarded $1.6 Billion, 8-year contract for Titanium Explorer drillship
-- Agreement to provide construction supervision, market and operate one
deepwater, 6th generation semi-submersible (unit has $1.0 Billion, 5-year
contract). Client has the option to extend Vantage's management services
agreement to include a second semi-submersible."
Vantage will conduct a call at 10:00 AM Eastern Time on Friday, March 13, 2009 to discuss results and developments for the fourth quarter 2008. To access the conference call, U.S. callers may dial toll free (877) 723-9509 and international callers may dial (719) 325-4797. The pass code will be 1411288. Please call ten minutes ahead of time to ensure proper connection. A replay of the conference call will be available for two weeks following the call and can be accessed by dialing (888) 203-1112 for U.S. callers and (719) 457-0820 for international callers. The access code for the replay is 1411288.
Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with one Baker Marine Pacific Class 375 ultra-premium jackup drilling rig operating, and three such jackups 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 Offshore Limited for an ultra-deepwater semi-submersible.
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
(A Corporation in the Development Stage)
CONSOLIDATED STATEMENT OF OPERATIONS
Three Months
Year Ended December 31, Ended December 31,
-------------------------- -------------------------
2008 2007 2008 2007
------------ ------------ ------------ -----------
Revenue $ 912,750 $ -- $ 912,750 $ --
Operating costs and
expenses
Operating costs 5,365,160 -- 3,122,427 --
General and
administrative 9,333,434 936,568 3,470,028 536,873
Impairment and
termination costs 38,286,166 -- 38,286,166 --
Depreciation 101,263 10,421 78,309 4,815
------------ ------------ ------------ -----------
Total operating
expenses 53,086,023 946,989 44,956,930 541,688
------------ ------------ ------------ -----------
Loss from
operations (52,173,273) (946,989) (44,044,180) (541,688)
Other income
(expense)
Interest income 4,095,067 7,699,060 6,176 3,193,968
Interest expense (56,485) -- (56,485) --
Other income 86,033 -- 86,033 --
------------ ------------ ------------ -----------
Total other
income (expense) 4,124,615 7,699,060 35,724 3,193,968
------------ ------------ ------------ -----------
Income (loss) before
income taxes (48,048,658) 6,752,071 (44,008,456) 2,652,280
Income tax provision
(benefit) (670,466) 2,298,564 (540,650) 901,152
------------ ------------ ------------ -----------
Net income (loss) $(47,378,192) $ 4,453,507 $(43,467,806) $ 1,751,128
============ ============ ============ ===========
Earnings (loss) Per
Share
Basic $ (0.78) $ 0.16 $ (0.57) $ 0.04
Diluted $ (0.78) $ 0.14 $ (0.57) $ 0.04
VANTAGE DRILLING COMPANY
(A Corporation in the Development Stage)
CONSOLIDATED BALANCE SHEET
December 31,
----------------------------
2008 2007
------------- -------------
ASSETS
Current assets
Cash and cash equivalents $ 16,557,351 $ 1,262,625
Restricted cash 1,699,781 --
Restricted cash held in trust account -- 273,109,051
Receivables 3,276,843 --
Prepaid expenses and other assets 1,985,956 87,075
------------- -------------
Total current assets 23,519,931 274,458,751
------------- -------------
Property and Equipment
Property and equipment 631,007,814 122,072
Accumulated depreciation (111,684) (10,421)
------------- -------------
Property and equipment, net 630,896,130 111,651
------------- -------------
Other Assets
Deferred income taxes 2,370,497 311,607
Other assets 8,496,964 756,771
------------- -------------
Total other assets 10,867,461 1,068,378
------------- -------------
Total assets $ 665,283,522 $ 275,638,780
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 3,826,815 $ 61,518
Accrued liabilities 14,766,472 578,618
Deferred underwriters fee -- 8,280,000
Income taxes payable (receivable) -- 310,171
Short-term debt 11,239,613 --
Current maturities of long-term debt 6,000,000 --
------------- -------------
Total current liabilities 35,832,900 9,230,307
------------- -------------
Long -term debt 133,000,000 --
Ordinary shares, subject to possible
redemption, 10,346,550 shares at redemption
value -- 79,286,965
Commitments and contingencies -- --
Shareholders' equity
Preferred shares, $0.001 par value,
1,000,000 shares authorized, none issued
or outstanding -- --
Ordinary shares, $0.001 par value,
400,000,000 and 100,000,000 shares
authorized, and 75,708,331 and 42,375,000
shares issued and outstanding 75,708 42,375
Additional paid-in capital 542,330,581 185,159,318
Earnings (deficit) accumulated during the
development stage (45,955,667) 1,919,815
------------- -------------
Total shareholders' equity 496,450,622 187,121,508
------------- -------------
Total liabilities and shareholders' equity $ 665,283,522 $ 275,638,780
============= =============
VANTAGE DRILLING COMPANY
(A Corporation in the Development Stage)
CONSOLIDATED STATEMENT OF CASH FLOWS
Year Ended December 31,
-----------------------------
2008 2007
------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ (47,378,192) $ 4,453,507
Adjustments to reconcile net income to net
cash provided by (used in) operating
activities:
Depreciation expense 101,263 10,421
Amortization of debt financing costs 513,059 --
Share-based compensation expense 2,420,356 --
Deferred income tax benefit (2,058,890) (311,607)
Write-off of asset value, net 28,286,166 --
Changes in operating assets and liabilities:
Restricted cash (1,699,781) --
Receivables (3,276,843) --
Prepaid expenses and other assets (1,618,726) 93,201
Accounts payable 3,765,297 61,518
Accrued liabilities 15,117,296 888,789
------------- -------------
Net cash provided by operating activities (5,828,995) 5,195,829
------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of assets (213,396,605) --
Additions to property and equipment (170,775,303) (122,072)
Deferred acquisition costs -- (756,771
Restricted cash held in trust account 273,109,051 (273,109,051)
------------- -------------
Net cash provided by (used in) investing
activities (111,062,857) (273,987,894)
------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings under credit
agreement 139,000,000 --
Debt issuance costs (8,533,406) --
Advances from stockholders of OGIL 3,300,000 --
Repayments of advances from stockholders
of OGIL (3,300,000) --
Proceeds from issuance of ordinary shares to
initial stockholders -- --
Proceeds from issuance of ordinary shares
and warrants in private placement -- 6,000,000
Proceeds from issuance of ordinary shares
and warrants to public stockholders -- 255,930,000
Proceeds from issuance of option to purchase
ordinary shares and warrants to
underwriters -- 100
Proceeds from notes payable-stockholders 10,000,000 85,800
Repayment of notes payable-stockholders -- (275,000)
Proceeds from deferred underwriters fee -- 8,280,000
Repayment of deferred underwriters fee (8,280,000) --
Redemption of ordinary shares (16) --
------------- -------------
Net cash provided by financing
activities 132,186,578 270,020,900
------------- -------------
Net increase (decrease) in cash and
cash equivalents 15,294,726 1,228,835
Cash and cash equivalents -- beginning of
period 1,262,625 33,790
------------- -------------
Cash and cash equivalents -- end of period $ 16,557,351 $ 1,262,625
============= =============
Contact Information: Public & Investor Relations Contact: Paul A. Bragg Chairman & Chief Executive Officer Vantage Drilling Company (281) 404-4700