HOUSTON, TX--(Marketwire - August 9, 2010) - Vantage Drilling Company ("Vantage") (
For the six months ended June 30, 2010, Vantage reports a net loss of $(1.0) million or $(0.00) per share as compared to net income of $6.3 million or $0.07 per share for the six months ended June 30, 2009.
Paul Bragg, President and Chief Executive Officer, commented, "While we are pleased with the progress and performance of the Company during the second quarter, more important developments have since occurred. In July, we completed the acquisition of the balance of Platinum Explorer, our first ultra-deepwater drillship. We also completed about $1.1 billion in debt and equity placements. With these transactions, we have nearly doubled our assets and increased forward EBITDA by about 2.25 times upon start up of Platinum Explorer. The foundation for our company is solid and we are poised for positive performance and results."
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 June 30, | ||||||||||
| 2010 | 2009 | |||||||||
| Revenues | ||||||||||
| Contract drilling services | $ | 48,413 | $ | 15,506 | ||||||
| Management fees | 4,437 | 5,300 | ||||||||
| Reimbursables | 15,504 | 1,387 | ||||||||
| Total revenues | 68,354 | 22,193 | ||||||||
| Operating costs and expenses | ||||||||||
| Operating costs, excluding impairment and termination costs | 40,705 | 9,942 | ||||||||
| General and administrative | 4,934 | 4,055 | ||||||||
| Depreciation | 8,366 | 2,102 | ||||||||
| Total operating expenses | 54,005 | 16,099 | ||||||||
| Income (loss) from operations | 14,349 | 6,094 | ||||||||
| Other income (expense) | ||||||||||
| Interest income | 3 | - | ||||||||
| Interest expense | (13,331 | ) | (1,310 | ) | ||||||
| Other income | 338 | 87 | ||||||||
| Total other income (expense) | (12,990 | ) | (1,223 | ) | ||||||
| Income before income taxes | 1,359 | 4,871 | ||||||||
| Income tax provision | 8,355 | 919 | ||||||||
| Net income (loss) | $ | (6,996 | ) | $ | 3,952 | |||||
| Earnings per share | ||||||||||
| Basic | $ | (0.03 | ) | $ | 0.04 | |||||
| Diluted | $ | (0.03 | ) | $ | 0.04 | |||||
| Vantage Drilling Company | |||||||||
| Consolidated Statement of Operations | |||||||||
| (In thousands, except per share amounts) | |||||||||
| (Unaudited) | |||||||||
| Six Months Ended June 30, | |||||||||
| 2010 | 2009 | ||||||||
| Revenues | |||||||||
| Contract drilling services | $ | 87,769 | $ | 25,293 | |||||
| Management fees | 8,875 | 9,442 | |||||||
| Reimbursables | 29,960 | 1,754 | |||||||
| Total revenues | 126,604 | 36,489 | |||||||
| Operating costs and expenses | |||||||||
| Operating costs, excluding impairment and termination costs | 71,364 | 15,582 | |||||||
| General and administrative | 9,409 | 7,491 | |||||||
| Depreciation | 15,843 | 3,758 | |||||||
| Total operating expenses | 96,616 | 26,831 | |||||||
| Income (loss) from operations | 29,988 | 9,658 | |||||||
| Other income (expense) | |||||||||
| Interest income | 15 | 8 | |||||||
| Interest expense | (21,316 | ) | (2,058 | ) | |||||
| Other income | 950 | 173 | |||||||
| Total other income (expense) | (20,351 | ) | (1,877 | ) | |||||
| Income before income taxes | 9,637 | 7,781 | |||||||
| Income tax provision | 10,671 | 1,471 | |||||||
| Net income | $ | (1,034 | ) | $ | 6,310 | ||||
| Earnings per share | |||||||||
| Basic | $ | 0.00 | $ | 0.07 | |||||
| Diluted | $ | 0.00 | $ | 0.07 | |||||
| Vantage Drilling Company | ||||||||||
| Consolidated Balance Sheet | ||||||||||
| (In thousands, except par value information) | ||||||||||
| June 30, | December 31, | |||||||||
| 2010 | 2009 | |||||||||
| ASSETS | (Unaudited) | |||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | $ | 18,415 | $ | 15,992 | ||||||
| Restricted cash | 27,178 | 28,863 | ||||||||
| Trade receivables | 59,242 | 17,536 | ||||||||
| Inventory | 14,354 | 10,789 | ||||||||
| Prepaid expenses and other current assets | 3,895 | 8,040 | ||||||||
| Total current assets | 123,084 | 81,220 | ||||||||
| Property and Equipment | ||||||||||
| Property and equipment | 915,917 | 899,541 | ||||||||
| Accumulated depreciation | (27,172 | ) | (11,329 | ) | ||||||
| Property and equipment, net | 888,745 | 888,212 | ||||||||
| Other Assets | ||||||||||
| Investment in joint venture | 129,110 | 120,306 | ||||||||
| Other assets | 27,628 | 29,441 | ||||||||
| Total other assets | 156,738 | 149,747 | ||||||||
| Total assets | $ | 1,168,567 | $ | 1,119,179 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
| Current liabilities | ||||||||||
| Accounts payable | $ | 26,910 | $ | 15,931 | ||||||
| Accrued liabilities | 18,223 | 14,285 | ||||||||
| Short-term debt | 2,569 | 17,827 | ||||||||
| Current maturities of long-term debt | 16,000 | 16,000 | ||||||||
| Total current liabilities | 63,702 | 64,043 | ||||||||
| Long-term debt, net of discount of $3,433 and $4,021 | 364,207 | 378,078 | ||||||||
| Deferred income taxes | 88 | - | ||||||||
| 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; 236,810 and 187,277 shares issued and outstanding | 237 | 187 | ||||||||
| Additional paid-in capital | 779,209 | 714,486 | ||||||||
| Accumulated deficit | (38,151 | ) | (37,117 | ) | ||||||
| Accumulated other comprehensive loss | (725 | ) | (498 | ) | ||||||
| Total shareholders' equity | 740,570 | 677,058 | ||||||||
| Total liabilities and shareholders' equity | $ | 1,168,567 | $ | 1,119,179 | ||||||
| Vantage Drilling Company | ||||||||||
| Consolidated Statement of Cash Flows | ||||||||||
| (In thousands) | ||||||||||
| (Unaudited) | ||||||||||
| Six Months Ended June 30, | ||||||||||
| 2010 | 2009 | |||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||
| Net income (loss) | $ | (1,034 | ) | $ | 6,310 | |||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||
| Depreciation expense | 15,843 | 3,758 | ||||||||
| Amortization of debt financing costs | 1,952 | 464 | ||||||||
| Share-based compensation expense | 3,050 | 2,391 | ||||||||
| Accretion of long-term debt | 2,508 | - | ||||||||
| Amortization of senior notes discount | 588 | - | ||||||||
| Deferred income tax expense | 1,712 | - | ||||||||
| Changes in operating assets and liabilities: | ||||||||||
| Restricted cash | 1,685 | (14,005 | ) | |||||||
| Trade receivables | (41,706 | ) | (12,018 | ) | ||||||
| Inventory | (3,566 | ) | (6,934 | ) | ||||||
| Prepaid expenses and other current assets | 4,145 | (1,939 | ) | |||||||
| Other assets | (1,490 | ) | (170 | ) | ||||||
| Accounts payable | 10,979 | 1,139 | ||||||||
| Accrued liabilities | 3,857 | 9,042 | ||||||||
| Short-term debt | 1,467 | 760 | ||||||||
| Net cash used in operating activities | (10 | ) | (11,202 | ) | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||
| Acquisition of assets | - | - | ||||||||
| Additions to property and equipment | (16,375 | ) | (67,248 | ) | ||||||
| Investment in joint venture | (8,804 | ) | (15,574 | ) | ||||||
| Deferred acquisition costs | - | - | ||||||||
| Net cash used in investing activities | (25,179 | ) | (82,822 | ) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||
| Proceeds from borrowings under credit agreements | 41,821 | |||||||||
| Repayment of long-term debt | (16,968 | ) | (3,353 | ) | ||||||
| Proceeds from issuance of ordinary shares in private placement, net | 24,954 | |||||||||
| Proceeds from issuance of ordinary shares in public offering, net | 47,578 | - | ||||||||
| Proceeds from warrant exercise in connection with joint venture | 15,600 | |||||||||
| Proceeds from short-term notes payable-shareholders | 4,000 | |||||||||
| Repayment of short-term debt | (2,725 | ) | (930 | ) | ||||||
| Debt issuance costs | (273 | ) | - | |||||||
| Net cash provided by financing activities | 27,612 | 82,092 | ||||||||
| Net increase (decrease) in cash and cash equivalents | 2,423 | (11,932 | ) | |||||||
| Cash and cash equivalents--beginning of period | 15,992 | 16,557 | ||||||||
| Cash and cash equivalents--end of period | $ | 18,415 | $ | 4,625 | ||||||
Contact Information:
Contact:
Public & Investor Relations Contact:
Paul A. Bragg
Chairman & Chief Executive Officer
Vantage Drilling Company
(281) 404-4700