Vantage Drilling Company has reported net income for the three months ended June 30, 2014 of $15.1 million or $0.05 per diluted share, excluding charges for the early retirement of debt and a revision to the tax provision, as compared to earnings of $4.2 million or $0.01 per diluted share for the three months ended June 30, 2013.
Including approximately $1.4 million charge for the early retirement of debt and a $3.5 million revision to the tax provision for the three months ended June 30, 2014, the Company reported earnings of $10.2 million or $0.03 per diluted share.
The $1.4 million charge for the early retirement of debt consists of the writing off a portion of deferred financing costs and original debt issuance discount associated with the discretionary prepayment of $42 million on our 2017 Term Loan. The total debt paydown for the quarter, including scheduled maturities and open market purchases of our Senior Notes, totaled $56.9 million.
During the second quarter, our customer for the Titanium Explorer revised their upcoming drilling location for the rig, which coupled with revised financial estimates, had a significant impact on our estimated annual effective tax rate. We are required to calculate the effective tax rate on an annual basis and apply it to the financial statements on a year-to-date basis. The change in estimates resulted in the recognition of an additional $3.5 million tax provision for the second quarter.
Paul Bragg, Chairman and Chief Executive Officer , commented, “We are pleased to achieve another quarter of strong operating results. The highlight of the quarter was our debt paydown of nearly $57 million. We remain on track to reach our 2014 debt reduction goal, given our contracted backlog and continued high operating efficiency across the fleet.”
Press Release, August 05, 2014