HOUSTON, TX--(Marketwired - March 06, 2015) - Vantage Drilling Company ("Vantage" or the "Company") (NYSE MKT: VTG) reports net income for the three months ended December 31, 2014 of $12.6 million or $0.04 per diluted share as compared to earnings of $30.3 million or $.09 per diluted share for the three months ended December 31, 2013. The three months ended December 31, 2014 includes a gain on the early retirement of debt of approximately $4.2 million.
The $4.2 million gain on the early retirement of debt represents the discount to the face value of debt that we purchased in the open market, net of writing off deferred financing costs. The total debt retirement for the quarter, including scheduled maturities and open market purchase of debt, totaled approximately $60.6 million at face value.
For the twelve months ended December 31, 2014, Vantage reports record net income of approximately $38.3 million or $.12 per diluted share, excluding net gains from the early retirement of debt of approximately $3.8 million as compared to net income of approximately $16.5 million or $.05 per diluted share, excluding approximately $98.3 million of charges for the early retirement of debt. Including the gains and losses associated with the early retirement of debt, for the twelve months ended December 31, 2014, Vantage reports net income of $42.0 million or $.14 per diluted as compared to a net loss of $81.8 million or ($.27) per diluted share for the same period in 2013.
During 2014, the total debt retirement, including scheduled maturities, discretionary Term Loan payments and open market purchases, was approximately $199.7 million at face value. In connection with our discretionary Term Loan payments and open market purchases, we recognized a net gain on the early retirement of debt of approximately $3.8 million.
Paul Bragg, Chairman and Chief Executive Officer, commented, "We are pleased to announce Vantage completed 2014 with record revenues, EBITDA and net income for the year. With strong cash flows, we were able to exceed our targeted debt retirement goal and strengthen the balance sheet."
Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with an owned fleet of three ultra-deepwater drillships, the Platinum Explorer, the Titanium Explorer and the Tungsten Explorer, as well as an additional ultra-deepwater drillship, the Cobalt Explorer, now under construction, and four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs. 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 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)
Three Months Ended
December 31, Year Ended December 31,
------------------------ ------------------------
2014 2013 2014 2013
----------- ----------- ----------- -----------
(Unaudited) (Unaudited)
Revenues
Contract drilling
services $ 204,305 $ 216,775 $ 807,164 $ 666,129
Management fees 1,922 5,111 14,396 14,622
Reimbursables 9,633 16,651 54,001 51,309
----------- ----------- ----------- -----------
Total revenues 215,860 238,537 875,561 732,060
----------- ----------- ----------- -----------
Operating costs and
expenses
Operating costs 110,510 99,349 421,505 335,915
General and
administrative 7,645 9,240 34,106 32,612
Depreciation 31,716 31,882 126,610 106,609
----------- ----------- ----------- -----------
Total operating
costs and expenses 149,871 140,471 582,221 475,136
----------- ----------- ----------- -----------
Income from operations 65,989 98,066 293,340 256,924
Other income (expense)
Interest income 7 26 45 221
Interest expense and
other financing
charges (51,775) (55,853) (213,924) (214,149)
Gain (loss) on debt
extinguishment 4,214 - 3,752 (98,327)
Other, net (1,795) (574) (1,179) 1,621
----------- ----------- ----------- -----------
Total other income
(expense) (49,349) (56,401) (211,306) (310,634)
----------- ----------- ----------- -----------
Income (loss) before
income taxes 16,640 41,665 82,034 (53,710)
Income tax provision 4,020 11,349 40,028 28,115
----------- ----------- ----------- -----------
Net income (loss) $ 12,620 $ 30,316 $ 42,006 $ (81,825)
=========== =========== =========== ===========
Earnings (loss) per
share
Basic $ 0.04 $ 0.10 $ 0.14 $ (0.27)
Diluted $ 0.04 $ 0.09 $ 0.14 $ (0.27)
Vantage Drilling Company
Supplemental Operating Data
(Unaudited, in thousands, except percentages)
Three Months Ended
December 31, Year Ended December 31,
------------------------ ------------------------
2014 2013 2014 2013
----------- ----------- ----------- -----------
Operating costs and
expenses
Jackups $ 24,192 $ 21,288 $ 94,754 $ 89,253
Deepwater 64,887 56,092 235,343 164,775
Operations support 9,464 8,108 40,502 33,267
Reimbursables 11,967 13,861 50,906 48,620
----------- ----------- ----------- -----------
$ 110,510 $ 99,349 $ 421,505 $ 335,915
----------- ----------- ----------- -----------
Utilization
Jackups 100.0% 89.4% 99.2% 87.1%
Deepwater 86.5% 90.3% 85.1% 93.3%
Vantage Drilling Company
Consolidated Balance Sheet
(In thousands, except par value information)
December 31, December 31,
2014 2013
------------ ------------
ASSETS
Current assets
Cash and cash equivalents $ 82,812 $ 54,686
Restricted cash - 2,125
Trade receivables 153,428 168,654
Inventory 65,892 55,804
Prepaid expenses and other current assets 28,618 23,717
------------ ------------
Total current assets 330,750 304,986
------------ ------------
Property and equipment
Property and equipment 3,524,566 3,472,407
Accumulated depreciation (406,674) (281,759)
------------ ------------
Property and equipment, net 3,117,892 3,190,648
------------ ------------
Other assets
Investment in joint venture 1,318 32,482
Other assets 79,897 100,027
------------ ------------
Total other assets 81,215 132,509
------------ ------------
Total assets $ 3,529,857 $ 3,628,143
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 59,139 $ 65,115
Accrued liabilities 101,537 96,382
Current maturities of long-term debt and
revolving credit agreement, net of discount
of $1,181 95,378 63,500
------------ ------------
Total current liabilities 256,054 224,997
------------ ------------
Long-term debt, net of discount of $25,875 and
$39,325 2,632,802 2,852,050
Other long-term liabilities 85,327 45,640
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, 500,000
shares authorized; 307,808 and 304,101 shares
issued and outstanding 308 304
Additional paid-in capital 905,136 896,928
Accumulated deficit (349,770) (391,776)
------------ ------------
Total shareholders' equity 555,674 505,456
------------ ------------
Total liabilities and shareholders' equity $ 3,529,857 $ 3,628,143
============ ============
Vantage Drilling Company
Consolidated Statement of Cash Flows
(In thousands)
Year Ended December 31,
--------------------------
2014 2013
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 42,006 $ (81,825)
Adjustments to reconcile net income (loss) to
net cash provided by (used in) operating
activities:
Depreciation expense 126,610 106,609
Amortization of debt financing costs 11,535 12,356
Amortization of debt discount 11,266 7,523
Non-cash (gain) loss on debt extinguishment (3,752) 6,070
Share-based compensation expense 8,212 7,064
Deferred income tax expense (benefit) (305) 997
Equity in loss of joint venture 570 513
Loss on disposal of assets 3,008 1,603
Changes in operating assets and liabilities:
Restricted cash 2,125 1,390
Trade receivables 15,226 (49,202)
Inventory (10,088) (17,860)
Prepaid expenses and other current assets (4,914) 1,169
Other assets 6,307 (12,654)
Accounts payable (5,976) 14,206
Accrued liabilities and other long-term
liabilities 45,794 (46,390)
------------ ------------
Net cash provided by (used in) operating
activities 247,624 (48,431)
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment (51,746) (564,319)
Return of investment in joint venture 23,250 -
Proceeds from sale of property and equipment - 22
------------ ------------
Net cash used in investing activities (28,496) (564,297)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of senior secured
notes, net - 775,000
Proceeds from the issuance of term loan, net - 344,750
Proceeds from the issuance of senior
convertible notes - 100,000
Repayment of long-term debt (181,002) (1,033,874)
Proceeds from (repayment of) revolving credit
agreement, net (10,000) 10,000
Debt issuance costs - (31,188)
------------ ------------
Net cash provided by (used in) financing
activities (191,002) 164,688
------------ ------------
Net increase (decrease) in cash and cash
equivalents 28,126 (448,040)
Cash and cash equivalents -- beginning of year 54,686 502,726
------------ ------------
Cash and cash equivalents -- end of year $ 82,812 $ 54,686
============ ============
FOR FURTHER INFORMATION PLEASE CONTACT:
Public & Investor Relations Contact:
Paul A. Bragg
Chairman & Chief Executive Officer
Vantage Drilling Company
(281) 404-4700
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
