HOUSTON, Nov. 09, 2023 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported near breakeven net income attributable to controlling interest for the three months ended September 30, 2023, as compared to a net loss attributable to controlling interest of $20.2 million, or $1.54 per diluted share, for the three months ended September 30, 2022.
As of September 30, 2023, Vantage had approximately $77.6 million in cash, including $7.6 million of restricted cash, compared to $93.3 million in cash, including $19.2 million of restricted cash, at December 31, 2022. At September 30, 2023, Vantage maintained $13.2 million of cash pre-funded by our Managed Services customers to address near-term obligations during the third quarter of 2023. Excluding cash used in connection with our Managed Services customers, the Company used $0.9 million of cash during the third quarter of 2023.
Ihab Toma, CEO, commented: “I am pleased to report that our financial performance for the quarter ending September 30, 2023, has significantly improved year over year. This improvement is attributed to our reduced debt level, increased fleet utilization, and higher day rates, showcasing our path to growth and profitability”
Mr. Toma continued: “As always, we would not be in this position without the hard work and dedication of our onshore and offshore personnel and the continued support from our clients”
Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of two ultra-deepwater drillships, and two 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 markets, operates and provides management services in respect of, third party-owned drilling units. www.vantagedrilling.com.
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 reports or filings posted to its website or otherwise made available to its investors or creditors. 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:
Rafael Blattner
Chief Financial Officer
Vantage Drilling International
C/O Vantage Energy Services, Inc.
777 Post Oak Blvd., Suite 440
Houston, Texas 77056
(281) 404-4700
| Vantage Drilling International | |||||||||||||||
| Consolidated Statement of Operations | |||||||||||||||
| (In thousands, except per share data) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Revenue | |||||||||||||||
| Contract drilling services | $ | 76,190 | $ | 34,092 | $ | 191,780 | $ | 121,749 | |||||||
| Management fees | 6,086 | 4,442 | 13,775 | 8,385 | |||||||||||
| Reimbursables and other | 21,426 | 32,424 | 83,059 | 72,393 | |||||||||||
| Total revenue | 103,702 | 70,958 | 288,614 | 202,527 | |||||||||||
| Operating costs and expenses | |||||||||||||||
| Operating costs | 73,988 | 66,429 | 214,926 | 169,767 | |||||||||||
| General and administrative | 5,561 | 4,253 | 15,553 | 17,745 | |||||||||||
| Depreciation | 11,065 | 11,022 | 33,159 | 33,404 | |||||||||||
| (Gain) loss on EDC Sale | — | (632 | ) | 3 | (61,413 | ) | |||||||||
| Total operating costs and expenses | 90,614 | 81,072 | 263,641 | 159,503 | |||||||||||
| Income (loss) from operations | 13,088 | (10,114 | ) | 24,973 | 43,024 | ||||||||||
| Other (expense) income | |||||||||||||||
| Interest income | 251 | 17 | 441 | 28 | |||||||||||
| Interest expense and other financing charges | (5,343 | ) | (8,504 | ) | (16,247 | ) | (25,511 | ) | |||||||
| Other, net | 115 | (363 | ) | (20 | ) | (2,149 | ) | ||||||||
| Total other expense | (4,977 | ) | (8,850 | ) | (15,826 | ) | (27,632 | ) | |||||||
| Income (loss) before income taxes | 8,111 | (18,964 | ) | 9,147 | 15,392 | ||||||||||
| Income tax provision | 8,097 | 1,566 | 10,703 | 1,783 | |||||||||||
| Net income (loss) | 14 | (20,530 | ) | (1,556 | ) | 13,609 | |||||||||
| Net income (loss) attributable to noncontrolling interests | 10 | (332 | ) | (736 | ) | 606 | |||||||||
| Net income (loss) attributable to shareholders | $ | 4 | $ | (20,198 | ) | $ | (820 | ) | $ | 13,003 | |||||
| EBITDA(1) | $ | 24,258 | $ | 877 | $ | 58,848 | $ | 73,673 | |||||||
| Earnings (loss) per share | |||||||||||||||
| Basic | $ | 0.00 | $ | (1.54 | ) | $ | (0.06 | ) | $ | 0.99 | |||||
| Diluted | $ | 0.00 | $ | (1.54 | ) | $ | (0.06 | ) | $ | 0.98 | |||||
| Weighted average ordinary shares outstanding, | |||||||||||||||
| Basic | 13,229 | 13,115 | 13,213 | 13,115 | |||||||||||
| Diluted | 13,323 | 13,115 | 13,213 | 13,330 | |||||||||||
| (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 September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Operating costs and expenses | |||||||||||||||
| Jackups | $ | 7,366 | $ | 13,223 | $ | 15,088 | $ | 31,907 | |||||||
| Deepwater | 26,056 | 20,738 | 69,174 | 51,216 | |||||||||||
| Managed Rigs | 17,825 | (6 | ) | 52,084 | (5 | ) | |||||||||
| Held for Sale(2) | — | — | — | 10,703 | |||||||||||
| Operations support | 2,764 | 2,515 | 8,340 | 8,380 | |||||||||||
| Reimbursables | 19,977 | 29,959 | 70,240 | 67,566 | |||||||||||
| Total operating costs and expenses | $ | 73,988 | $ | 66,429 | $ | 214,926 | $ | 169,767 | |||||||
| Utilization | |||||||||||||||
| Jackups | 67.2 | % | 51.3 | % | 83.4 | % | 68.1 | % | |||||||
| Deepwater | 84.9 | % | 96.7 | % | 81.0 | % | 95.6 | % | |||||||
| Held for Sale(2) | N/A | N/A | N/A | 43.6 | % | ||||||||||
| (2) Included in the sale of Emerald Driller Company, which owns the Emerald Driller, Sapphire Driller and Aquamarine Driller .Each of these rigs were classified as held for sale on our Consolidated Balance Sheets up to the closing date, which was on May 27, 2022. | |||||||||||||||
| Vantage Drilling International | |||||||
| Consolidated Balance Sheets | |||||||
| (In thousands, except share and par value information) | |||||||
| (Unaudited) | |||||||
| September 30, 2023 | December 31, 2022 | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 70,000 | $ | 74,026 | |||
| Restricted cash | 639 | 16,450 | |||||
| Trade receivables, net of allowance for credit losses of $3,850 and $4,962, respectively | 87,313 | 62,776 | |||||
| Materials and supplies | 47,973 | 41,250 | |||||
| Prepaid expenses and other current assets | 41,788 | 25,621 | |||||
| Total current assets | 247,713 | 220,123 | |||||
| Property and equipment | |||||||
| Property and equipment | 653,488 | 647,909 | |||||
| Accumulated depreciation | (341,357 | ) | (309,453 | ) | |||
| Property and equipment, net | 312,131 | 338,456 | |||||
| Operating lease ROU assets | 1,300 | 1,648 | |||||
| Other assets | 16,348 | 18,334 | |||||
| Total assets | $ | 577,492 | $ | 578,561 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 63,191 | $ | 57,775 | |||
| Other current liabilities | 56,879 | 66,179 | |||||
| Total current liabilities | 120,070 | 123,954 | |||||
| Long–term debt, net of discount and financing costs of $10,487 and $773, respectively | 189,513 | 179,227 | |||||
| Other long-term liabilities | 7,204 | 12,881 | |||||
| Commitments and contingencies | |||||||
| Shareholders' equity | |||||||
| Ordinary shares, $0.001 par value, 50 million shares authorized; 13,229,280 and 13,115,026 shares issued and outstanding, each period | 13 | 13 | |||||
| Additional paid-in capital | 633,625 | 633,863 | |||||
| Accumulated deficit | (373,967 | ) | (373,147 | ) | |||
| Controlling interest shareholders' equity | 259,671 | 260,729 | |||||
| Noncontrolling interests | 1,034 | 1,770 | |||||
| Total equity | 260,705 | 262,499 | |||||
| Total liabilities and shareholders' equity | $ | 577,492 | $ | 578,561 | |||
| Vantage Drilling International | |||||||
| Consolidated Statement of Cash Flows | |||||||
| (In thousands) | |||||||
| (Unaudited) | |||||||
| Nine Months Ended September 30, | |||||||
| 2023 | 2022 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
| Net (loss) income | $ | (1,556 | ) | $ | 13,609 | ||
| Adjustments to reconcile net (loss) income to net cash used in operating activities | |||||||
| Depreciation expense | 33,159 | 33,404 | |||||
| Amortization of debt financing costs | 1,455 | 1,229 | |||||
| Share-based compensation expense | 45 | 61 | |||||
| Loss on debt extinguishment | 703 | — | |||||
| Deferred income tax expense | 994 | 301 | |||||
| Gain on disposal of assets | — | (1,600 | ) | ||||
| Loss (gain) on EDC Sale | 3 | (61,413 | ) | ||||
| Changes in operating assets and liabilities: | |||||||
| Trade receivables, net | (24,537 | ) | (50,289 | ) | |||
| Materials and supplies | (6,723 | ) | (2,218 | ) | |||
| Prepaid expenses and other current assets | (9,377 | ) | 2,680 | ||||
| Other assets | 4,810 | (23,222 | ) | ||||
| Accounts payable | 5,416 | 31,873 | |||||
| Other current liabilities and other long-term liabilities | (15,822 | ) | 33,624 | ||||
| Net cash used in operating activities | (11,430 | ) | (21,961 | ) | |||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
| Additions to property and equipment | (6,833 | ) | (8,154 | ) | |||
| Net proceeds from EDC Sale | — | 198,700 | |||||
| Net proceeds from sale of assets | — | 3,100 | |||||
| Net cash (used in) provided by investing activities | (6,833 | ) | 193,646 | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
| Proceeds from 9.50% First Lien Notes | 194,000 | — | |||||
| Repayment of long-term debt | (180,000 | ) | — | ||||
| Shares repurchased for tax withholdings on settlement of RSUs | (246 | ) | — | ||||
| Payments of dividend equivalents | (5,278 | ) | — | ||||
| Debt issuance costs | (5,850 | ) | — | ||||
| Net cash provided by financing activities | 2,626 | — | |||||
| Net (decrease) increase in unrestricted and restricted cash and cash equivalents | (15,637 | ) | 171,685 | ||||
| Unrestricted and restricted cash and cash equivalents—beginning of period | 93,257 | 90,608 | |||||
| Unrestricted and restricted cash and cash equivalents—end of period | $ | 77,620 | $ | 262,293 | |||
| Vantage Drilling International | |||||||||||||||
| Non-GAAP Measures | |||||||||||||||
| (In thousands) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| Reconciliation of EBITDA | 2023 | 2022 | 2023 | 2022 | |||||||||||
| Net income (loss) attributable to shareholders | $ | 4 | $ | (20,198 | ) | $ | (820 | ) | $ | 13,003 | |||||
| Depreciation | 11,065 | 11,022 | 33,159 | 33,404 | |||||||||||
| Interest income | (251 | ) | (17 | ) | (441 | ) | (28 | ) | |||||||
| Interest expense and other financing costs | 5,343 | 8,504 | 16,247 | 25,511 | |||||||||||
| Income tax provision | 8,097 | 1,566 | 10,703 | 1,783 | |||||||||||
| EBITDA | $ | 24,258 | $ | 877 | $ | 58,848 | $ | 73,673 | |||||||
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