Vantage Drilling International Reports First Quarter Results for 2022

Houston, Texas, UNITED STATES


HOUSTON, May 16, 2022 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported a net loss attributable to controlling interest of approximately $14.9 million, or $1.14 per diluted share, for the three months ended March 31, 2022, based on the weighted average shares outstanding, as compared to a net loss attributable to controlling interest of $36.0 million, or $2.74 per diluted share, for the three months ended March 31, 2021.

As of March 31, 2022, Vantage had approximately $78.6 million in cash, including $16.4 million of restricted cash, compared to $90.6 million in cash, including $17.3 million of restricted cash, at December 31, 2021. The Company used $8.2 million in cash from operations during the first quarter of 2022 compared to $15.4 million used during the same period of 2021.

Ihab Toma, CEO, commented: “I am very proud that for the quarter, the Company achieved positive EBITDA1.  We continue to see improving signs in the market as the recovery moves forward.  Our focus remains on operating safely, efficiently and effectively for our clients.”

Mr. Toma continued, “In addition, we are making progress towards closing the previously announced sale of three of our jack-up rigs to the ADES Group, which we expect to occur in the second quarter of 2022. The sale will materially improve the liquidity profile of the Company.”

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of two ultra-deepwater drillships, and five 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 gas companies. Vantage also provides construction supervision, preservation management and operating management services for third-party owned drilling units.

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.

Non-GAAP Measures

We report our financial results in accordance with generally accepted accounting principles (GAAP) in the United States. However, in our earnings release and during our earnings calls we may reference company information that does not conform to GAAP. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Management believes that an analysis of this data is meaningful to investors because it provides insight with respect to ongoing operating results of the Company and allows investors to better evaluate the financial results of the Company. However, these measures should not be viewed as an alternative to or substitute for GAAP measures of performance, and these non-GAAP measures may not be consistent with previously published Company reports on Forms 10-K, 10-Q and 8-K. Non-GAAP measures we may reference have been reconciled to the nearest GAAP measure in the tables entitled Reconciliation of GAAP to Non-GAAP Financial Measures below.

Public & Investor Relations Contact:

Douglas E. Stewart
Chief Financial Officer and General Counsel
Vantage Drilling International
C/O Vantage Energy Services, Inc.
777 Post Oak Blvd., Suite 440
Houston, Texas 77056
(281) 404-4700

____________________________
1 EBITDA represents net income (loss) before (i) interest income (expense), (ii) provision for income taxes and (iii) depreciation and amortization expense. EBITDA is not a financial measure under GAAP as defined under the rules of the SEC, and is intended as a supplemental measure of our performance. We believe this measure is commonly used by analysts and investors to analyze and compare companies on the basis of operating performance.


  
  
Vantage Drilling International 
Consolidated Statement of Operations 
(In thousands, except per share data) 
(Unaudited) 
      
  Three Months Ended March 31, 
   2022   2021  
Revenue     
Contract drilling services $44,913  $17,725  
Management fees  1,103   98  
Reimbursables and other  12,315   2,343  
Total revenue  58,331   20,166  
Operating costs and expenses     
Operating costs  43,933   25,357  
General and administrative  6,582   5,495  
Depreciation  11,295   14,125  
Total operating costs and expenses  61,810   44,977  
Loss from operations  (3,479)  (24,811) 
Other (expense) income     
Interest income  4   100  
Interest expense and other financing charges  (8,504)  (8,510) 
Other, net  (775)  (614) 
Total other expense  (9,275)  (9,024) 
Loss before income taxes  (12,754)  (33,835) 
Income tax provision  1,438   2,162  
Net loss  (14,192)  (35,997) 
Net income (loss) attributable to noncontrolling interests  706   (13) 
Net loss attributable to shareholders $(14,898) $(35,984) 
      
EBITDA (1) $6,335  $(11,287) 
      
Loss per share     
Basic and Diluted $(1.14) $(2.74) 
Weighted average ordinary shares outstanding,     
Basic and Diluted  13,115   13,115  
      
(1) EBITDA represents net income (loss) before (i) interest income (expense), (ii) provision for income taxes and (iii) depreciation and amortization expense. EBITDA is not a financial measure under GAAP as defined under the rules of the SEC, and is intended as a supplemental measure of our performance. We believe this measure is commonly used by analysts and investors to analyze and compare companies on the basis of operating performance. 
      
  
Vantage Drilling International 
Supplemental Operating Data 
(Unaudited, in thousands, except percentages) 
      
  Three Months Ended March 31, 
   2022   2021  
Operating costs and expenses     
Jackups $8,425  $14,149  
Deepwater  14,543   7,244  
Managed Rigs  7,127     
Held for Sale  6,821     
Operations support  2,937   2,212  
Reimbursables  4,080   1,752  
Total operating costs and expenses $43,933  $25,357  
Utilization     
Jackups  60.3%  30.7% 
Deepwater  98.8%  49.1% 
Held for Sale  41.5%  N/A  
      


Vantage Drilling International
Consolidated Balance Sheets
(In thousands, except share and par value information)
(Unaudited)
     
  March 31, 2022 December 31, 2021
     
ASSETS    
Current assets    
Cash and cash equivalents $62,234  $73,343 
Restricted cash  726   1,621 
Trade receivables, net of allowance for doubtful accounts of $5.0 million, each period  50,732   37,527 
Materials and supplies  38,143   37,580 
Assets held for sale  150,465   117,117 
Prepaid expenses and other current assets  14,772   18,309 
Total current assets  317,072   285,497 
Property and equipment    
Property and equipment  645,622   645,622 
Accumulated depreciation  (276,751)  (266,018)
Property and equipment, net  368,871   379,604 
Operating lease ROU assets  2,049   2,450 
Other assets  31,915   31,843 
Total assets $719,907  $699,394 
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
Current liabilities    
Accounts payable $45,836  $31,420 
Other current liabilities  42,692   31,533 
Liabilities held for sale  15,985   6,720 
Total current liabilities  104,513   69,673 
Long–term debt, net of discount and financing costs of $2,732 and $3,142, respectively  347,268   346,858 
Other long-term liabilities  16,504   17,012 
Commitments and contingencies    
Shareholders' equity    
Ordinary shares, $0.001 par value, 50 million shares authorized; 13,115,026 shares issued and outstanding, each period  13   13 
Additional paid-in capital  633,810   633,847 
Accumulated deficit  (384,690)  (369,792)
Controlling interest shareholders' equity  249,133   264,068 
Noncontrolling interests  2,489   1,783 
Total equity  251,622   265,851 
Total liabilities and shareholders' equity $719,907  $699,394 
     


  
Vantage Drilling International 
Consolidated Statement of Cash Flows 
(In thousands) 
(Unaudited) 
  Three Months Ended March 31, 
   2022   2021  
CASH FLOWS FROM OPERATING ACTIVITIES     
Net loss $(14,192) $(35,997) 
Adjustments to reconcile net loss to net cash used in operating activities     
Depreciation expense  11,295   14,125  
Amortization of debt financing costs  410   410  
Share-based compensation expense  26   306  
Deferred income tax expense (benefit)  365   (150) 
Gain on disposal of assets  (1,893)  (2,733) 
Changes in operating assets and liabilities:     
Trade receivables, net  (13,205)  (430) 
Materials and supplies  (482)  9  
Prepaid expenses and other current assets  155   (1,766) 
Other assets  (16,639)  (2,069) 
Accounts payable  23,165   (878) 
Other current liabilities and other long-term liabilities  2,790   13,822  
Net cash used in operating activities  (8,205)  (15,351) 
CASH FLOWS FROM INVESTING ACTIVITIES     
Additions to property and equipment  (6,899)  (456) 
Net proceeds from sale of assets  3,100     
Net proceeds from sale of Titanium Explorer     13,557  
Net cash (used in) provided by investing activities  (3,799)  13,101  
CASH FLOWS FROM FINANCING ACTIVITIES     
Net cash provided by financing activities       
Net decrease in unrestricted and restricted cash and cash equivalents  (12,004)  (2,250) 
Unrestricted and restricted cash and cash equivalents—beginning of period  90,608   154,487  
Unrestricted and restricted cash and cash equivalents—end of period $78,604  $152,237  
      



Vantage Drilling International
Non-GAAP Measures
(In thousands)
(Unaudited)
     
  Three Months Ended March 31,
Reconciliation of EBITDA  2022   2021 
Net loss attributable to shareholders $(14,898) $(35,984)
Depreciation  11,295   14,125 
Interest income  (4)  (100)
Interest expense and other financing costs  8,504   8,510 
Income tax provision  1,438   2,162 
EBITDA $6,335  $(11,287)
     

PDF available: http://ml.globenewswire.com/Resource/Download/12f7a119-0c04-44aa-84e6-b71aa9257f86