- Published: 16 March 2012
- Written by Editor
Vantage Drilling Company Reports Fourth Quarter 2011 Results
Vantage Drilling Company ("Vantage") (AMEX: VTG ) reports a net loss of $9.3 million or ($0.03) per diluted share for the three months ended December 31, 2011 as compared to a net loss of $13.0 million or ($0.05) per diluted share for the three months ended December 31, 2010.
Net loss for the fiscal year ended December 31, 2011 was $54.8 million or ($0.19) per share excluding approximately $25.2 million of charges for the early retirement of debt as compared to a loss of $19.8 million or ($0.08) per share in the prior year period, excluding approximately $27.8 million of acquisition and refinancing charges. Including the acquisition and refinancing charges, Vantage reported a net loss $80.0 million or ($0.28) per diluted share for the year ended December 31, 2011 as compared to a net loss of $47.6 million or $(0.19) per diluted share for the year ended December 31, 2010.
Paul Bragg, Chairman and Chief Executive Officer, commented, "We are very pleased to announce record annual revenues and income from operations. Vantage continues to deliver operational excellence. Our jackup fleet had outstanding productive time for the year in excess of 99% and the Platinum Explorer completed its initial year of operations with productive time in excess of 92%. Market conditions are improving, particularly for new, modern rigs like ours."
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) (Unaudited) Three Months Ended December 31, ------------------------------- 2011 2010 -------------- -------------- Revenues Contract drilling services $ 91,961 $ 45,881 Management fees 3,228 4,717 Reimbursables 26,111 34,294 -------------- -------------- Total revenues 121,300 84,892 -------------- -------------- Operating costs and expenses Operating costs, excluding impairment and termination costs 72,175 63,441 General and administrative 5,849 6,016 Depreciation 16,352 8,773 -------------- -------------- Total operating expenses 94,376 78,230 -------------- -------------- Income from operations 26,924 6,662 Other income (expense) Interest income 29 166 Interest expense (36,931) (14,219) Other income (589) (58) -------------- -------------- Total other expense (37,491) (14,111) -------------- -------------- Loss before income taxes (10,567) (7,449) Income tax provision (benefit) (1,221) 5,516 -------------- -------------- Net loss $ (9,346) $ (12,965) ============== ============== Earnings (loss) per share Basic $ (0.03) $ (0.05) Diluted $ (0.03) $ (0.05)
Vantage Drilling Company Consolidated Statement of Operations (In thousands, except per share amounts) Year Ended December 31, ---------------------------------- 2011 2010 2009 ---------- ---------- ---------- Revenues Contract drilling services $ 366,363 $ 178,514 $ 69,919 Management fees 13,727 18,107 18,830 Reimbursables 105,258 81,782 22,744 ---------- ---------- ---------- Total revenues 485,348 278,403 111,493 ---------- ---------- ---------- Operating costs and expenses Operating costs 284,400 176,387 66,228 General and administrative 26,317 21,719 15,690 Depreciation 64,477 33,384 11,218 ---------- ---------- ---------- Total operating expenses 375,194 231,490 93,136 ---------- ---------- ---------- Income from operations 110,154 46,913 18,357 Other income (expense) Interest income 96 562 23 Interest expense and financing charges (154,897) (49,827) (8,178) Loss on debt extinguishment (25,196) (24,006) - Loss on acquisition of subsidiary - (3,780) - Other income 1,324 1,510 609 ---------- ---------- ---------- Total other expense (178,673) (75,541) (7,546) ---------- ---------- ---------- Income (loss) before income taxes (68,519) (28,628) 10,811 Income tax provision 11,432 18,951 1,972 ---------- ---------- ---------- Net income (loss) $ (79,951) $ (47,579) $ 8,839 ========== ========== ========== Earnings (loss) per share Basic $ (0.28) $ (0.19) $ 0.07 Diluted $ (0.28) $ (0.19) $ 0.07
Vantage Drilling Company
Consolidated Balance Sheet
(In thousands, except par value information)
December 31,
------------------------------
2011 2010
-------------- --------------
ASSETS
Current assets
Cash and cash equivalents $ 110,031 $ 120,443
Restricted cash 7,028 29,004
Trade receivables 100,908 50,190
Inventory 24,376 19,760
Prepaid expenses and other current assets 16,909 11,472
-------------- --------------
Total current assets 259,252 230,869
-------------- --------------
Property and equipment
Property and equipment 1,913,596 1,762,844
Accumulated depreciation (108,521) (44,712)
-------------- --------------
Property and equipment, net 1,805,075 1,718,132
-------------- --------------
Other assets
Other assets 58,173 54,193
-------------- --------------
Total other assets 58,173 54,193
-------------- --------------
Total assets $ 2,122,500 $ 2,003,194
============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 46,362 $ 32,332
Accrued liabilities 103,809 83,733
-------------- --------------
Total current liabilities 150,171 116,065
-------------- --------------
Long-term debt, net of discount of $38,572
and $63,654 1,246,428 1,103,480
Other long-term liabilities 29,755 13,498
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; 291,241 and 289,713
shares issued and outstanding 291 290
Additional paid-in capital 860,502 854,557
Accumulated deficit (164,647) (84,696)
-------------- --------------
Total shareholders' equity 696,146 770,151
-------------- --------------
Total liabilities and shareholders' equity $ 2,122,500 $ 2,003,194
============== ==============
Vantage Drilling Company Consolidated Statement of Cash Flows (In thousands) Year Ended December 31, ---------------------------------- 2011 2010 2009 ---------- ---------- ---------- CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ (79,951) $ (47,579) $ 8,839 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation expense 64,477 33,384 11,218 Amortization of debt financing costs 8,653 5,389 1,486 Non-cash loss on debt extinguishment 3,532 12,280 - Non-cash loss on acquisition of subsidiary - 3,780 - Share-based compensation expense 5,946 6,141 5,030 Accretion of long-term debt 2,582 5,495 1,638 Amortization of debt discount 9,332 5,592 29 Deferred income tax expense (benefit) (3,984) 1,492 746 Loss on disposal of assets 226 - - Changes in operating assets and liabilities: Restricted cash 21,977 (142) (27,163) Trade receivables (50,719) (40,791) (14,350) Inventory (4,616) (8,971) (10,789) Prepaid expenses and other current assets (1,549) (3,433) (5,963) Other assets (3,069) (11,945) (406) Accounts payable 14,030 16,402 12,104 Accrued liabilities 29,006 32,491 (12,204) ---------- ---------- ---------- Net cash provided by (used in) operating activities 15,873 9,585 (29,785) ---------- ---------- ---------- CASH FLOWS FROM INVESTING ACTIVITIES Additions to property and equipment (144,800) (565,759) (313,631) Acquisition of assets - (79,777) - Investment in joint venture - - (157,404) Proceeds from sale of property and equipment 464 - - ---------- ---------- ---------- Net cash used in investing activities (144,336) (645,536) (471,035) ---------- ---------- ---------- CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of senior secured notes, net 240,750 963,610 - Proceeds from borrowings under credit agreements - - 141,821 Proceeds from the issuance of 13 1/2% senior secured notes, net - - 130,950 Repayment of long-term debt (109,716) (293,129) (19,360) Proceeds from issuance of ordinary shares in public offerings, net - 101,889 80,291 Proceeds from issuance of ordinary shares in private placement, net - - 24,953 Proceeds from warrant exercise in connection with joint venture - - 150,000 Proceeds from short-term notes payable-shareholders - - 4,000 Debt issuance costs (12,983) (31,968) (12,400) ---------- ---------- ---------- Net cash provided by financing activities 118,051 740,402 500,255 ---------- ---------- ---------- Net increase (decrease) in cash and cash equivalents (10,412) 104,451 (565) Cash and cash equivalents-beginning of period 120,443 15,992 16,557 ---------- ---------- ---------- Cash and cash equivalents-end of period $ 110,031 $ 120,443 $ 15,992 ========== ========== ==========
Paul A. Bragg
Chairman & Chief Executive Officer
Vantage Drilling Company
(281) 404-4700
