Stocks & Investing
Stocks and Investing
Stocks and Investing
Tue, November 10, 2009
Mon, November 9, 2009 Vantage Drilling Company Reports Third Quarter 2009 Results
HOUSTON, TX--(Marketwire - November 9, 2009) - Vantage Drilling Company ("Vantage") (
For the nine months ended September 30, 2009, Vantage reported net income of approximately $13.1 million or $0.13 per diluted share compared to a net loss of approximately $3.9 million or $(0.07) per share in the prior year. Revenues for the nine months ended September 30, 2009 were approximately $72.9 million.
Paul Bragg, President and Chief Executive Officer, commented, "The third quarter of 2009 was another period of solid achievement for Vantage. Our second rig, the Sapphire Driller, commenced operations in August with outstanding start up performance. We were able to book additions to our contractual backlog for the jackups as we secured follow-on work for the Sapphire Driller and have received a Letter of Intent for the Aquamarine Driller to work in Asia following the completion of its commissioning. Despite this year having been a difficult one for the offshore drilling business, we have created an excellent operating platform and look forward to improving market conditions for 2010 and beyond."
Summarizing several important accomplishments are the following:
-- Emerald Driller operating in Thailand achieved 99% plus productive time in the quarter. -- Sapphire Driller began operations on August 21st in Côte d'Ivoire and achieved 98% plus productive time. -- Aquamarine Driller was delivered from the shipyard on September 3, 2009. -- Raised approximately $80.3 million in a public offering of 55.1 million ordinary shares including underwriters' overallotment. -- Issued $100.0 million term loan to complete the funding for the Aquamarine Driller.
Vantage will conduct a call at 11:30 AM Eastern Time on Monday, November 9, 2009 to discuss results and developments for the third quarter 2009. To access the conference call, U.S. callers may dial toll free (888) 471-3828 and international callers may dial (719) 325-2477. The pass code will be 6403005. 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 6403005.
Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with two Baker Marine Pacific Class 375 ultra-premium jackup drilling rig operating, one such jackup currently being outfitted, and another such jackup 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 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 Nine Months Ended September 30, September 30, ------------------ ------------------ 2009 2008 2009 2008 -------- -------- -------- -------- Revenues Contract drilling services $ 21,644 $ - $ 46,937 $ - Management fees 5,688 - 15,129 - Reimbursables 9,114 - 10,869 - -------- -------- -------- -------- Total revenues 36,446 - 72,935 - -------- -------- -------- -------- Operating costs and expenses Operating costs 19,967 1,997 35,550 2,243 General and administrative 3,650 3,413 11,140 5,863 Depreciation 3,165 11 6,923 23 -------- -------- -------- -------- Total operating expenses 26,782 5,421 53,613 8,129 -------- -------- -------- -------- Income (loss) from operations 9,664 (5,421) 19,322 (8,129) Other income (expense) Interest income 4 257 13 4,089 Interest expense (1,945) - (4,004) - Other income 143 - 316 - -------- -------- -------- -------- Total other income (expense) (1,798) 257 (3,675) 4,089 -------- -------- -------- -------- Income (loss) before income taxes 7,866 (5,164) 15,647 (4,040) Income tax provision (benefit) 1,063 (613) 2,534 (130) -------- -------- -------- -------- Net income (loss) $ 6,803 $ (4,551) $ 13,113 $ (3,910) ======== ======== ======== ======== Earnings (loss) per share Basic $ 0.05 $ (0.06) $ 0.13 $ (0.07) Diluted $ 0.05 $ (0.06) $ 0.13 $ (0.07) Vantage Drilling Company Consolidated Balance Sheet (In thousands, except par value information) September 30, December 31, 2009 2008 ----------- ----------- (Unaudited) ASSETS Current assets Cash and cash equivalents $ 40,670 $ 16,557 Restricted cash 24,916 1,700 Trade receivables 20,976 3,186 Inventory 12,189 - Prepaid expenses and other current assets 2,225 2,077 ----------- ----------- Total current assets 100,976 23,520 ----------- ----------- Property and Equipment Property and equipment 759,617 631,008 Accumulated depreciation (7,034) (112) ----------- ----------- Property and equipment, net 752,583 630,896 ----------- ----------- Other Assets Investment in joint venture 101,891 - Other assets 23,730 10,867 ----------- ----------- Total other assets 125,621 10,867 ----------- ----------- Total assets $ 979,180 $ 665,283 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 13,347 $ 3,827 Accrued liabilities 17,784 14,766 Short-term debt 14,152 11,239 Current maturities of long-term debt 17,216 6,000 ----------- ----------- Total current liabilities 62,499 35,832 ----------- ----------- Long-term debt 250,373 133,000 Commitments and contingencies - - Shareholders' equity Preferred shares, $0.001 par value, 1,000 shares authorized; none issued or outstanding - - Ordinary shares, $0.001 par value, 400,000 shares authorized; 179,565 and 75,708 shares issued and outstanding 180 76 Additional paid-in capital 699,605 542,331 Accumulated deficit (32,843) (45,956) Accumulated other comprehensive loss (634) - ----------- ----------- Total shareholders' equity 666,308 496,451 ----------- ----------- Total liabilities and shareholders' equity $ 979,180 $ 665,283 =========== =========== Vantage Drilling Company Consolidated Statement of Cash Flows (In thousands) (Unaudited) Nine Months Ended September 30, ---------------------- 2009 2008 ---------- ---------- CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ 13,113 $ (3,910) Adjustments to reconcile net income to net cash used in operating activities: Depreciation expense 6,923 23 Amortization of debt financing costs 872 257 Share-based compensation expense 3,636 1,286 Accretion of long-term debt 373 - Deferred income tax benefit 83 (1,520) Changes in operating assets and liabilities: Restricted cash (23,216) (1,100) Trade receivables, net (17,791) - Inventory (12,190) - Prepaid expenses and other current assets (147) (710) Other assets (412) - Accounts payable 9,520 1,964 Accrued liabilities 12,384 1,274 Short-term debt 760 - ---------- ---------- Net cash used in operating activities (6,092) (2,436) ---------- ---------- CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of assets - (213,397) Additions to property and equipment (200,102) (108,436) Investment in joint venture (104,001) - Deferred acquisition costs - 757 Restricted cash held in trust account - 273,109 ---------- ---------- Net cash used in investing activities (304,103) (47,967) ---------- ---------- CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings under credit agreements 141,821 79,000 Repayment of long-term debt (13,605) - 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 104,100 - Proceeds from short-term notes payable-shareholders 4,000 - Repayment of short-term debt (1,848) - Debt issuance costs (5,404) (8,533) Advances from stockholders of OGIL - 3,300 Repayments of advances from stockholders of OGIL - (3,300) Repayment of deferred underwriters fee - (8,280) ---------- ---------- Net cash provided by financing activities 334,308 62,187 ---------- ---------- Net increase in cash and cash equivalents 24,113 11,784 Cash and cash equivalents--beginning of period 16,557 1,263 ---------- ---------- Cash and cash equivalents--end of period $ 40,670 $ 13,047 ========== ==========
