Vantage Drilling International Reports First Quarter Results for 2018
HOUSTON, May 04, 2018 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported a net loss of approximately $32.1 million or $6.43 per share for the three months ended March 31, 2018 as compared to a net loss of $36.5 million or $7.30 per share for the three months ended March 31, 2017.
As of March 31, 2018, Vantage had approximately $197.7 million of cash, including $5 million of restricted cash, compared to $195.5 million at December 31, 2017.
Ihab Toma, CEO, commented, “I am pleased to report our improved overall company performance, with revenues up 37% from the comparable quarter in the prior year. This increase is a direct result of our industry leading utilization with six of our seven high specification assets being contracted during the quarter. In addition, with the earlier announced follow on contract for the Topaz Driller in Gabon, we have added an additional $16.7 million in backlog.”
Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of three ultra-deepwater drillships and four 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 globally for major, national and independent oil and natural gas companies. Vantage also provides construction supervision services and preservation management services for, and will operate and manage, drilling units owned by others.
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 disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.
Public & Investor Relations Contact:
Thomas J. Cimino
Chief Financial Officer
Vantage Drilling International
(281) 404-4700
| Vantage Drilling International | |||||||||
| Consolidated Statement of Operations | |||||||||
| (In thousands, except per share data) | |||||||||
| (Unaudited) | |||||||||
| Three Months Ended March 31, |
|||||||||
| 2018 | 2017 | ||||||||
| Revenue | |||||||||
| Contract drilling services | $ | 51,595 | $ | 38,056 | |||||
| Management fees | 301 | 401 | |||||||
| Reimbursables | 5,767 | 3,592 | |||||||
| Total revenue | 57,663 | 42,049 | |||||||
| Operating costs and expenses | |||||||||
| Operating costs | 40,985 | 28,998 | |||||||
| General and administrative | 7,354 | 11,479 | |||||||
| Depreciation | 17,868 | 18,439 | |||||||
| Total operating costs and expenses | 66,207 | 58,916 | |||||||
| Loss from operations | (8,544 | ) | (16,867 | ) | |||||
| Other income (expense) | |||||||||
| Interest income | 221 | 141 | |||||||
| Interest expense and other financing charges | (19,271 | ) | (18,899 | ) | |||||
| Other, net | (570 | ) | 552 | ||||||
| Total other expense | (19,620 | ) | (18,206 | ) | |||||
| Loss before income taxes | (28,164 | ) | (35,073 | ) | |||||
| Income tax provision | 3,973 | 1,426 | |||||||
| Net loss | $ | (32,137 | ) | $ | (36,499 | ) | |||
| Net loss per share, basic and diluted | $ | (6.43 | ) | $ | (7.30 | ) | |||
| Weighted average successor ordinary shares outstanding, basic and diluted | 5,000 | 5,000 | |||||||
| Vantage Drilling International | |||||||||
| Supplemental Operating Data | |||||||||
| (Unaudited, in thousands, except percentages) | |||||||||
| Three Months Ended March 31, |
|||||||||
| 2018 | 2017 | ||||||||
| Operating costs and expenses | |||||||||
| Jackups | $ | 14,463 | $ | 12,862 | |||||
| Deepwater | 19,812 | 11,056 | |||||||
| Operations support | 3,127 | 2,969 | |||||||
| Reimbursables | 3,583 | 2,111 | |||||||
| $ | 40,985 | $ | 28,998 | ||||||
| Utilization | |||||||||
| Jackups | 86.2 | % | 50.0 | % | |||||
| Deepwater | 53.9 | % | 33.3 | % | |||||
| Vantage Drilling International | ||||||||
| Consolidated Balance Sheet | ||||||||
| (In thousands, except share and par value information) | ||||||||
| (Unaudited) | ||||||||
|
March 31, 2018 |
December 31, 2017 |
|||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 192,739 | $ | 195,455 | ||||
| Restricted cash | 5,000 | - | ||||||
| Trade receivables | 38,881 | 45,379 | ||||||
| Inventory | 44,144 | 43,955 | ||||||
| Prepaid expenses and other current assets | 11,036 | 13,207 | ||||||
| Total current assets | 291,800 | 297,996 | ||||||
| Property and equipment | ||||||||
| Property and equipment | 904,111 | 904,584 | ||||||
| Accumulated depreciation | (158,942 | ) | (141,393 | ) | ||||
| Property and equipment, net | 745,169 | 763,191 | ||||||
| Other assets | 20,227 | 21,935 | ||||||
| Total assets | $ | 1,057,196 | $ | 1,083,122 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 41,717 | $ | 39,666 | ||||
| Accrued liabilities | 21,363 | 25,117 | ||||||
| Current maturities of long-term debt | 1,430 | 4,430 | ||||||
| Total current liabilities | 64,510 | 69,213 | ||||||
| Long–term debt, net of discount and financing costs of $43,744 and $56,174 | 929,911 | 919,939 | ||||||
| Other long-term liabilities | 18,137 | 17,195 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders' equity | ||||||||
| Ordinary shares, $0.001 par value, 50 million shares authorized; 5,000,053 shares issued and outstanding | 5 | 5 | ||||||
| Additional paid-in capital | 373,972 | 373,972 | ||||||
| Accumulated deficit | (329,339 | ) | (297,202 | ) | ||||
| Total shareholders' equity | 44,638 | 76,775 | ||||||
| Total liabilities and shareholders’ equity | $ | 1,057,196 | $ | 1,083,122 | ||||
| Vantage Drilling International | ||||||||
| Consolidated Statement of Cash Flows | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2018 | 2017 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (32,137 | ) | $ | (36,499 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
| Depreciation expense | 17,868 | 18,439 | ||||||
| Amortization of debt financing costs | 117 | 117 | ||||||
| Amortization of debt discount | 12,313 | 12,191 | ||||||
| Amortization of contract value | 1,556 | — | ||||||
| PIK interest on the Convertible Notes | 1,912 | 1,890 | ||||||
| Share-based compensation expense | 1,745 | 780 | ||||||
| Deferred income tax (expense) benefit | 419 | (1,789 | ) | |||||
| Gain on disposal of assets | (2,682 | ) | — | |||||
| Changes in operating assets and liabilities: | ||||||||
| Trade receivables | 6,498 | 1,207 | ||||||
| Inventory | (189 | ) | 293 | |||||
| Prepaid expenses and other current assets | 120 | (951 | ) | |||||
| Other assets | (383 | ) | 1,434 | |||||
| Accounts payable | 2,051 | 1,668 | ||||||
| Accrued liabilities and other long-term liabilities | (6,292 | ) | (401 | ) | ||||
| Net cash provided by (used in) operating activities | 2,916 | (1,621 | ) | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Additions to property and equipment | (19 | ) | (2,156 | ) | ||||
| Proceeds from sale of Vantage 260 | 4,845 | — | ||||||
| Net cash provided by (used in) investing activities | 4,826 | (2,156 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Repayment of long-term debt | (5,458 | ) | (358 | ) | ||||
| Net cash used in financing activities | (5,458 | ) | (358 | ) | ||||
| Net (decrease) increase in cash and cash equivalents | 2,284 | (4,135 | ) | |||||
| Cash and cash equivalents—beginning of period | 195,455 | 231,727 | ||||||
| Cash and cash equivalents—end of period | $ | 197,739 | $ | 227,592 | ||||
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