Vantage Drilling International Reports First Quarter Results for 2016
/EINPresswire.com/ -- HOUSTON, TX -- (Marketwired) -- 05/13/16 -- 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 Period from
February January 1, Three
10, 2016 to 2016 to Months
March 31, February Ended March
2016 10, 2016 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
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Vantage Drilling International
Supplemental Operating Data
(Unaudited, in thousands, except percentages)
Successor Predecessor
----------- ------------------------
Period from Period from
February January 1, Three
10, 2016 to 2016 to Months
March 31, February Ended March
2016 10, 2016 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, December 31,
2016 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 Period from
February 10, January 1,
2016 to 2016 to Three Months
March 31, February 10, Ended March
2016 2016 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
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