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:

GLJ

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 )

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