HOUSTON, TX--(Marketwired - May 13, 2016) - Vantage Drilling International ("Vantage" or the "Company") reported a net loss of $471.0 million for the period from January 1, 2016 to February 10, 2016 for the Predecessor Company and a net loss of $29.0 million for the Successor for the period, including February 10, 2016, through March 31, 2016. Upon emergence from Chapter 11 bankruptcy on February 10, 2016, Vantage adopted fresh-start accounting, which resulted in the Company becoming a new entity for financial reporting purposes. References to "Successor" relate to the financial position and results of operations of the reorganized Vantage as of and subsequent to February 10, 2016. References to "Predecessor" refer to the financial position of Vantage as of and prior to February 10, 2016 and the results of operations prior to February 10, 2016. As a result of the application of fresh-start accounting and the effects of the implementation of our Plan of Reorganization, the financial statements on or after February 10, 2016 are not comparable with the financial statements prior to that date.
The Predecessor's operating results for the period from January 1, 2016 to February 10, 2016, include approximately $452.9 million of Reorganization Items. The Successor's operating results for the period from February 10, 2016 through March 31, 2016 include Reorganization Items of approximately $154,000.
For the three month period ended March 31, 2015, the Predecessor reported net income of approximately $22.6 million.
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 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 International | |||||||||||||
Consolidated Statement of Operations | |||||||||||||
(Unaudited, in thousands) | |||||||||||||
Successor | Predecessor | ||||||||||||
Period from February 10, 2016 to March 31, 2016 | Period from January 1, 2016 to February 10, 2016 | Three Months Ended March 31, 2015 | |||||||||||
Revenue | |||||||||||||
Contract drilling services | $ | 24,059 | $ | 20,891 | 207,981 | ||||||||
Management fees | 959 | 752 | 1,881 | ||||||||||
Reimbursables | 4,768 | 1,897 | 10,659 | ||||||||||
Total revenue | 29,786 | 23,540 | 220,521 | ||||||||||
Operating costs and expenses | |||||||||||||
Operating costs | 27,439 | 25,213 | 95,350 | ||||||||||
General and administrative | 9,168 | 2,558 | 5,990 | ||||||||||
Depreciation | 12,076 | 10,696 | 31,623 | ||||||||||
Total operating costs and expenses | 48,683 | 38,467 | 132,963 | ||||||||||
Income (loss) from operations | (18,897 | ) | (14,927 | ) | 87,558 | ||||||||
Other income (expense) | |||||||||||||
Interest income | 6 | 3 | 12 | ||||||||||
Interest expense and other financing charges | (10,650 | ) | (1,728 | ) | (46,119 | ) | |||||||
Gain on debt extinguishment | -- | -- | 10,825 | ||||||||||
Other, net | 1,834 | (69 | ) | (151 | ) | ||||||||
Reorganization items | (154 | ) | (452,923 | ) | -- | ||||||||
Total other income (expense) | (8,964 | ) | (454,717 | ) | (35,433 | ) | |||||||
Income (loss) before income taxes | (27,861 | ) | (469,644 | ) | 52,125 | ||||||||
Income tax provision | 1,167 | 2,371 | 29,289 | ||||||||||
Net income (loss) | (29,028 | ) | (472,015 | ) | 22,836 | ||||||||
Net income (loss) attributable to noncontrolling interests | -- | (969 | ) | 190 | |||||||||
Net income (loss) attributable to VDI | $ | (29,028 | ) | $ | (471,046 | ) | $ | 22,646 | |||||
Vantage Drilling International | |||||||||||||
Supplemental Operating Data | |||||||||||||
(Unaudited, in thousands, except percentages) | |||||||||||||
Successor | Predecessor | ||||||||||||
Period from February 10, 2016 to March 31, 2016 | Period from January 1, 2016 to February 10, 2016 | Three Months Ended March 31, 2015 | |||||||||||
Operating costs and expenses | |||||||||||||
Jackups | $ | 8,278 | $ | 5,975 | $ | 24,263 | |||||||
Deepwater | 13,146 | 15,550 | 56,093 | ||||||||||
Operations support | 2,215 | 2,219 | 8,722 | ||||||||||
Reimbursables | 3,800 | 1,469 | 6,272 | ||||||||||
$ | 27,439 | $ | 25,213 | $ | 95,350 | ||||||||
Utilization | |||||||||||||
Jackups | 60.0 | % | 53.6 | % | 96.1 | % | |||||||
Deepwater | 33.3 | % | 33.3 | % | 93.5 | % | |||||||
Vantage Drilling International | ||||||||||
Consolidated Balance Sheet | ||||||||||
(In thousands, except par value information) | ||||||||||
(Unaudited) | ||||||||||
Successor | Predecessor | |||||||||
March 31, 2016 |
December 31, 2015 |
|||||||||
ASSETS | ||||||||||
Current assets | ||||||||||
Cash and cash equivalents | $ | 249,201 | $ | 203,420 | ||||||
Restricted cash | 1,000 | - | ||||||||
Trade receivables | 51,668 | 70,722 | ||||||||
Inventory | 44,463 | 64,495 | ||||||||
Prepaid expenses and other current assets | 20,167 | 22,106 | ||||||||
Total current assets | 366,499 | 360,743 | ||||||||
Property and equipment | ||||||||||
Property and equipment | 898,586 | 3,481,006 | ||||||||
Accumulated depreciation | (11,997 | ) | (532,619 | ) | ||||||
Property and equipment, net | 886,589 | 2,948,387 | ||||||||
Other assets | 9,872 | 23,050 | ||||||||
Total assets | $ | 1,262,960 | $ | 3,332,180 | ||||||
LIABILITIES AND SHAREHOLDER'S EQUITY | ||||||||||
Current liabilities | ||||||||||
Accounts payable | $ | 41,256 | $ | 49,437 | ||||||
Accrued liabilities | 38,757 | 21,702 | ||||||||
Current maturities of long-term debt | 1,430 | -- | ||||||||
VDC note payable | -- | 61,477 | ||||||||
Total current liabilities | 81,443 | 132,616 | ||||||||
Long-term debt, net of discount of $140,073 and $0 | 825,040 | -- | ||||||||
Other long-term liabilities | 11,528 | 33,097 | ||||||||
Liabilities subject to compromise | -- | 2,694,456 | ||||||||
Commitments and contingencies | ||||||||||
Shareholder's equity | ||||||||||
Predecessor ordinary shares, $0.001 par value, 50 million shares authorized; one thousand shares issued and outstanding | -- | -- | ||||||||
Predecessor additional paid-in capital | -- | 595,119 | ||||||||
Successor ordinary shares, $0.001 par value, 50 million shares authorized; 5,000 shares issued and outstanding | 5 | -- | ||||||||
Successor additional paid-in capital | 373,972 | -- | ||||||||
Accumulated deficit | (29,028 | ) | (138,363 | ) | ||||||
Total VDI shareholder's equity | 344,949 | 456,756 | ||||||||
Noncontrolling interests | -- | 15,255 | ||||||||
Total equity | 344,949 | 472,011 | ||||||||
Total liabilities and equity | $ | 1,262,960 | $ | 3,332,180 | ||||||
Vantage Drilling International | ||||||||||||||
Consolidated Statement of Cash Flows | ||||||||||||||
(Unaudited, in thousands) | ||||||||||||||
Successor | Predecessor | |||||||||||||
Period from February 10, 2016 to March 31, 2016 | Period from January 1, 2016 to February 10, 2016 | Three Months Ended March 31, 2015 | ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||
Net income (loss) | $ | (29,028 | ) | $ | (472,015 | ) | $ | 22,836 | ||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||||
Depreciation expense | 12,076 | 10,696 | 31,623 | |||||||||||
Amortization of debt financing costs | 76 | -- | 2,127 | |||||||||||
Amortization of debt discount | 6,847 | -- | 602 | |||||||||||
Reorganization items | -- | 430,210 | -- | |||||||||||
Non-cash gain on debt extinguishment | -- | -- | (10,816 | ) | ||||||||||
Deferred income tax benefit | (606 | ) | -- | (525 | ) | |||||||||
Loss on disposal of assets | 144 | -- | 19 | |||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Restricted cash | -- | (1,000 | ) | -- | ||||||||||
Trade receivables | 22,629 | (3,575 | ) | (9,162 | ) | |||||||||
Inventory | (221 | ) | 223 | (2,305 | ) | |||||||||
Prepaid expenses and other current assets | (4,954 | ) | 6,893 | 6,101 | ||||||||||
Other assets | 368 | 941 | 2,650 | |||||||||||
Accounts payable | 6,708 | (14,890 | ) | (41,651 | ) | |||||||||
Accrued liabilities and other long-term liabilities | (5,801 | ) | 21,152 | 41,696 | ||||||||||
Net cash provided by (used in) operating activities | 8,238 | (21,365 | ) | 43,195 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||
Additions to property and equipment | (7,674 | ) | 116 | (5,894 | ) | |||||||||
Net cash provided by (used in) investing activities | (7,674 | ) | 116 | (5,894 | ) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||
Repayment of long-term debt | (358 | ) | (7,000 | ) | (40,854 | ) | ||||||||
Proceeds from issuance of 10% Second Lien Notes | -- | 76,125 | -- | |||||||||||
Debt issuance costs | (51 | ) | (2,250 | ) | -- | |||||||||
Net cash provided by (used in) financing activities | (409 | ) | 66,875 | (40,854 | ) | |||||||||
Net increase (decrease) in cash and cash equivalents | 155 | 45,626 | (3,553 | ) | ||||||||||
Cash and cash equivalents--beginning of period | 249,046 | 203,420 | 75,801 | |||||||||||
Cash and cash equivalents--end of period | $ | 249,201 | $ | 249,046 | $ | 72,248 | ||||||||