HOUSTON, Oct. 31, 2017 /PRNewswire/ -- INDEPENDENCE
CONTRACT DRILLING, INC. (the "Company") (NYSE: ICD) today reported
financial results for the three months ended September 30, 2017.
Third Quarter 2017 Highlights
- Net loss of $6.0 million, or
$0.16 per share.
- Adjusted net loss, as defined below, of $5.1 million, or $0.13 per share.
- Adjusted EBITDA, as defined below, of $3.1 million.
- Fleet utilization of 98.0%.
- Record revenue days of 1,235.
- Fully-burdened margin per day, excluding construction costs, of
$4,521 per day. There were no
reactivation expenses during the quarter.
- Renewal of four term contracts adding three rig years to
backlog.
- Sequential backlog increase to $75
million at September 30,
2017.
- Net debt, excluding capitalized leases, of $44.3 million, on a borrowing base of
$107.5 million.
In the third quarter of 2017, the Company reported revenues of
$23.4 million, a net loss of
$6.0 million, or $0.16 per share, an adjusted net loss (defined
below) of $5.1 million, or
$0.13 per share, and adjusted EBITDA
(defined below) of $3.1 million.
This compares to revenues of $21.3
million, a net loss of $6.3
million, or $0.17 per share,
an adjusted net loss of $5.0 million,
or $0.13 per share, and adjusted
EBITDA of $3.2 million in the second
quarter of 2017, and revenues of $14.5
million, a net loss of $7.2
million, or $0.19 per share,
an adjusted net loss of $6.5 million,
or $0.17 per share, and adjusted
EBITDA of $1.0 million in the third
quarter of 2016.
Chief Executive Officer Byron
Dunn commented, "The third quarter represented a significant
milestone for ICD as we generated record revenue days and completed
our final rig conversion. We entered the fourth quarter with
100% of our fleet contracted and utilized, a level we expect to
maintain for the foreseeable future as commodity prices have
stabilized. Dayrates for pad optimal rigs have improved to
the high-teen to low-$20,000 per day
range. We recently signed four contract extensions that added three
rig years of backlog and rerated these contracts' dayrates up
$2,000 to $3,000 per day from prior
levels."
Quarterly Operational Results
In the third quarter of 2017, the Company's fleet operated at
98.0% utilization and recorded 1,235 revenue days compared to 93.9%
utilization and 1,111 revenue days in the second quarter of 2017
and 64.7% utilization and 774 revenue days in the third quarter of
2016. There were no revenue days earned on a
standby-without-crew basis in the third or second quarter of 2017,
compared to 222.0 days in the third quarter of 2016.
Hurricane Harvey and weather-related impacts during the third
quarter of 2017 included a reduction in revenue days compared to
expectations as well as modest increases in operating costs during
the quarter. In addition, the Company's corporate offices
suffered water-related damage that is currently the subject of an
insurance claim.
Operating revenues in the third quarter of 2017 totaled
$23.4 million, compared to
$21.3 million in the second quarter
of 2017 and $14.5 million in the
third quarter of 2016. On a revenue-per-day basis, revenues
were $18,034 per day in the third
quarter of 2017, compared to $18,201
in the second quarter of 2017 and $17,420 in the third quarter of 2016. The
decrease in revenue per day compared to prior quarters resulted
primarily from a reduction in revenue days earned under higher
dayrate legacy contracts.
Operating costs in the third quarter of 2017 totaled
$18.2 million, compared to
$15.8 million in the second quarter
of 2017 and $11.2 million in the
third quarter of 2016. Third quarter 2017 operating costs
included $0.4 million in rig
construction costs. Second quarter 2017 operating costs
included $0.4 million of reactivation
costs, and third quarter 2016 operating costs included $2.5 million of reactivation costs and
$0.3 million in rig construction
costs. Fully-burdened operating costs, excluding reactivation
and rig construction costs, were $13,513 per day in the third quarter of 2017,
compared to $12,926 in the second
quarter of 2017 and $9,614 in the
third quarter of 2016. The sequential increase in cost per
day related to a decrease in revenue days earned on a
standby-without-crew basis, where revenue is recognized without an
operating cost offset, as well as Hurricane Harvey and
weather-related costs, increased costs for repair and maintenance,
new hire mentoring initiatives and increased rig level
safety-related incentive compensation.
Third quarter 2017 fully-burdened rig operating margins,
excluding reactivation and rig construction costs, were
$4,521 per day, compared to
$5,275 per day in the second quarter
of 2017 and $7,806 per day in the
third quarter of 2016.
Selling, general and administrative expenses in the third
quarter of 2017 were $2.9 million
(including $0.9 million of non-cash
stock-based compensation), compared to $3.4
million (including $1.2
million of non-cash stock-based compensation) in the second
quarter of 2017 and $3.2 million
(including $1.0 million of non-cash
stock-based compensation and severance expense of $0.1 million) in the third quarter of 2016.
The sequential decrease in selling, general and
administrative expenses compared to the second quarter of 2017
related primarily to a reduction in incentive compensation expense
and professional fees, partially offset by costs for expanded new
hire training programs. Non-cash stock-based compensation
declined sequentially due to vesting of equity awards originally
granted in connection with the Company's initial public
offering.
Drilling Operations Update
All 14 of the Company's ShaleDriller® rigs are contracted and
operating under term contracts.
At September 30, 2017, the
Company's backlog of revenues from contracts with original terms of
six months or more was $75
million. Approximately $23.8
million of this backlog is expected to be realized during
the remainder of 2017.
Capital Expenditures and Liquidity Update
Aggregate cash outlays for capital expenditures in the third
quarter of 2017, net of disposals, were $9.6
million including $4.7 million
of payments for second quarter deliveries. The Company's
expects cash outlays, before disposals, for capital expenditures
for the remainder of 2017 to be approximately $3.5 million. At September 30, 2017, the Company had $5.7 million of assets classified as held for
sale.
As of September 30, 2017, the
Company had drawn $47.0 million on
its $85.0 million revolving credit
facility and had net debt, excluding capital leases, of
$44.3 million. The borrowing
base under the Company's credit facility was $107.5 million as of September 30, 2017.
Conference Call Details
A conference call for investors will be held today, October 31, 2017, at 11:00
a.m. Central Time (12:00 p.m. Eastern
Time) to discuss the Company's third quarter 2017
results. Hosting the call will be Byron A. Dunn, President and Chief Executive
Officer, and Philip A. Choyce,
Executive Vice President and Chief Financial Officer.
The call can be accessed live over the telephone by dialing
(855) 239-3115 or for international callers, (412) 542-4125.
A replay will be available shortly after the call and can be
accessed by dialing (877) 344-7529 or for international callers,
(412) 317-0088. The passcode for the replay is
10113262. The replay will be available until November 7, 2017.
Interested parties may also listen to a simultaneous webcast of
the conference call by logging onto the Company's website at
www.icdrilling.com in the Investor Relations section. A
replay of the webcast will also be available for approximately 30
days following the call.
About Independence Contract Drilling, Inc.
Independence Contract Drilling provides land-based contract
drilling services for oil and natural gas producers in the United States. The Company constructs,
owns and operates a fleet of pad-optimal ShaleDriller®
rigs that are specifically engineered and designed to accelerate
its clients' production profiles and cash flows from their most
technically demanding and economically impactful oil and gas
properties. For more information, visit www.icdrilling.com.
Forward-Looking Statements
This news release contains certain forward-looking statements
within the meaning of the federal securities laws. Words such as
"anticipated," "estimated," "expected," "planned," "scheduled,"
"targeted," "believes," "intends," "objectives," "projects,"
"strategies" and similar expressions are used to identify such
forward-looking statements. However, the absence of these words
does not mean that a statement is not forward-looking.
Forward-looking statements relating to Independence Contract
Drilling's operations are based on a number of expectations or
assumptions which have been used to develop such information and
statements but which may prove to be incorrect. These statements
are not guarantees of future performance and involve certain risks,
uncertainties and assumptions that are difficult to predict, and
there can be no assurance that actual outcomes and results will not
differ materially from those expected by management of Independence
Contract Drilling. For more information concerning factors that
could cause actual results to differ materially from those conveyed
in the forward-looking statements, please refer to the "Risk
Factors" section of the Company's Annual Report on Form 10-K, filed
with the SEC and the information included in subsequent amendments
and other filings. These forward-looking statements are based on
and include our expectations as of the date hereof. Independence
Contract Drilling does not undertake any obligation to update or
revise such forward-looking statements to reflect events or
circumstances that occur, or which Independence Contract Drilling
becomes aware of, after the date hereof.
INDEPENDENCE
CONTRACT DRILLING, INC. Unaudited (in
thousands, except par value and share data)
|
|
BALANCE
SHEETS
|
|
|
|
|
|
|
|
September 30,
2017
|
|
December 31,
2016
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
2,652
|
|
$
7,071
|
Accounts receivable,
net
|
15,811
|
|
11,468
|
Inventories
|
2,627
|
|
2,336
|
Assets held for
sale
|
5,739
|
|
3,915
|
Prepaid expenses and
other current assets
|
3,978
|
|
3,102
|
|
|
|
|
|
Total current
assets
|
30,807
|
|
27,892
|
Property, plant and
equipment, net
|
272,003
|
|
273,188
|
Other long-term
assets, net
|
1,503
|
|
1,027
|
|
|
|
|
|
Total
assets
|
$
304,313
|
|
$
302,107
|
Liabilities and
Stockholders' Equity
|
|
|
|
Liabilities
|
|
|
|
|
|
Current portion of
long-term debt (1)
|
$
510
|
|
$
441
|
|
Accounts
payable
|
8,365
|
|
10,031
|
|
Accrued
liabilities
|
6,477
|
|
7,821
|
|
|
|
|
|
Total current
liabilities
|
15,352
|
|
18,293
|
|
Long-term debt
(2)
|
47,630
|
|
26,078
|
|
Deferred income
taxes
|
506
|
|
396
|
|
Other long-term
liabilities
|
105
|
|
88
|
|
|
|
|
|
Total
liabilities
|
63,593
|
|
44,855
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Common stock, $0.01
par value, 100,000,000 shares authorized; 38,239,713 and 37,831,723
shares issued, respectively; and 37,981,534 and 37,617,920 shares
outstanding, respectively
|
380
|
|
376
|
|
Additional paid-in
capital
|
326,097
|
|
323,918
|
|
Accumulated
deficit
|
(83,900)
|
|
(65,347)
|
|
Treasury stock, at
cost, 258,179 and 213,803 shares, respectively
|
(1,857)
|
|
(1,695)
|
|
|
|
|
|
Total stockholders'
equity
|
240,720
|
|
257,252
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
304,313
|
|
$
302,107
|
|
|
(1)
|
Current portion of
long-term debt relates to the current portion of vehicle capital
lease obligations.
|
(2)
|
As of September 30,
2017, long-term debt includes $630K of long-term vehicle capital
lease obligations. As of December 31, 2016, long-term debt
included $326K of long-term vehicle capital lease
obligations.
|
INDEPENDENCE
CONTRACT DRILLING, INC. Unaudited (in
thousands, except per share amounts)
|
|
STATEMENTS OF
OPERATIONS
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
23,445
|
|
$
14,464
|
|
$
21,285
|
|
$
64,966
|
|
$
52,074
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
18,247
|
|
11,246
|
|
15,808
|
|
48,953
|
|
31,211
|
|
Selling, general and
administrative
|
2,948
|
|
3,242
|
|
3,435
|
|
10,101
|
|
11,868
|
|
Depreciation and
amortization
|
6,529
|
|
6,010
|
|
6,335
|
|
19,120
|
|
17,651
|
|
Asset impairment,
net
|
899
|
|
-
|
|
546
|
|
1,574
|
|
-
|
|
Loss on disposition
of assets, net
|
-
|
|
676
|
|
745
|
|
1,573
|
|
588
|
|
|
|
|
|
Total cost and
expenses
|
28,623
|
|
21,174
|
|
26,869
|
|
81,321
|
|
61,318
|
|
|
|
|
|
Operating
loss
|
(5,178)
|
|
(6,710)
|
|
(5,584)
|
|
(16,355)
|
|
(9,244)
|
Interest
expense
|
(772)
|
|
(456)
|
|
(686)
|
|
(2,088)
|
|
(2,492)
|
|
|
|
|
|
Loss before income
taxes
|
(5,950)
|
|
(7,166)
|
|
(6,270)
|
|
(18,443)
|
|
(11,736)
|
Income tax
expense
|
30
|
|
32
|
|
34
|
|
110
|
|
67
|
|
|
|
|
|
Net loss
|
$
(5,980)
|
|
$
(7,198)
|
|
$
(6,304)
|
|
$
(18,553)
|
|
$
(11,803)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
$
(0.16)
|
|
$
(0.19)
|
|
$
(0.17)
|
|
$
(0.49)
|
|
$
(0.37)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
37,839
|
|
37,387
|
|
37,679
|
|
37,688
|
|
31,670
|
INDEPENDENCE
CONTRACT DRILLING, INC. Unaudited (in
thousands)
|
|
STATEMENTS OF CASH
FLOWS
|
|
|
Nine Months Ended
September 30,
|
|
2017
|
|
2016
|
|
|
Cash flows from
operating activities
|
|
|
|
Net loss
|
$(18,553)
|
|
$(11,803)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities
|
|
|
|
Depreciation and amortization
|
19,120
|
|
17,651
|
Asset impairment, net
|
1,574
|
|
-
|
Stock-based compensation
|
3,036
|
|
3,336
|
Stock-based compensation - executive retirement
|
-
|
|
(67)
|
Loss on disposition of assets, net
|
1,573
|
|
588
|
Deferred income taxes
|
110
|
|
68
|
Amortization of deferred financing costs
|
344
|
|
408
|
Write-off of deferred financing costs
|
-
|
|
504
|
Changes in operating assets and liabilities
|
|
|
|
Accounts
receivable
|
(4,343)
|
|
9,275
|
Inventories
|
(257)
|
|
(227)
|
Prepaid
expenses and other assets
|
(1,037)
|
|
244
|
Accounts
payable and accrued liabilities
|
655
|
|
(3,325)
|
Net cash provided by operating activities
|
2,222
|
|
16,652
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Purchases of
property, plant and equipment
|
(26,975)
|
|
(17,331)
|
Proceeds from
insurance claims
|
-
|
|
188
|
Proceeds from the
sale of assets
|
1,088
|
|
864
|
Net cash used in investing activities
|
(25,887)
|
|
(16,279)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Borrowings under
credit facility
|
38,410
|
|
42,391
|
Repayments under
credit facility
|
(17,162)
|
|
(82,129)
|
Public offering
proceeds, net of offering costs
|
-
|
|
42,920
|
Purchase of treasury
stock
|
(162)
|
|
(345)
|
RSUs withheld for
taxes
|
(853)
|
|
-
|
Financing costs
paid
|
(538)
|
|
(217)
|
Payments for capital
lease obligations
|
(449)
|
|
(425)
|
Net cash provided by financing activities
|
19,246
|
|
2,195
|
Net (decrease) increase in cash and cash equivalents
|
(4,419)
|
|
2,568
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
Beginning of
period
|
7,071
|
|
5,344
|
End of
period
|
$
2,652
|
|
$
7,912
|
|
|
|
|
Supplemental
disclosure of cash flow information
|
|
|
|
Cash paid during the
period for interest
|
$
1,865
|
|
$
1,758
|
Cash (received) paid
during the period for income taxes
|
$
-
|
|
$
(133)
|
Supplemental
disclosure of non-cash investing and financing
activity
|
|
|
Change in property,
plant and equipment purchases in accounts payable
|
$
(3,648)
|
|
$
(1,537)
|
Additions to
property, plant and equipment through capital leases
|
$
822
|
|
$
1,256
|
The following table provides various financial and operational
data for the Company's operations during the three months ending
September 30, 2017 and 2016 and
June 30, 2017 and the nine months
ending September 30, 2017 and 2016.
This information contains non-GAAP financial measures of the
Company's operating performance. The Company believes this
non-GAAP information is useful because it provides a means to
evaluate the operating performance of the Company on an ongoing
basis using criteria that are used by our management.
Additionally, it highlights operating trends and aids analytical
comparisons. However, this information has limitations and
should not be used as an alternative to operating income (loss) or
cash flow performance measures determined in accordance with GAAP,
as this information excludes certain costs that may affect the
Company's operating performance in future periods.
OTHER FINANCIAL
& OPERATING DATA Unaudited
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2017
|
|
September 30,
2016
|
|
June 30,
2017
|
|
September 30,
2017
|
|
September 30,
2016
|
|
|
|
|
|
|
|
|
|
|
|
Number of completed
rigs end of period
|
|
14
|
|
14
|
|
14
|
|
14
|
|
14
|
Rig operating days
(1)
|
|
1,234.7
|
|
774.0
|
|
1,111.2
|
|
3,418.9
|
|
2,449.4
|
Average number of
operating rigs (2)
|
|
13.4
|
|
8.4
|
|
12.2
|
|
12.5
|
|
8.9
|
Rig utilization
(3)
|
|
98.0%
|
|
64.7%
|
|
93.9%
|
|
94.6%
|
|
72.0%
|
Average revenue per
operating day (4)
|
|
$
18,034
|
|
$
17,420
|
|
$
18,201
|
|
$
18,061
|
|
$
20,209
|
Average cost per
operating day (5)
|
|
$
13,513
|
|
$
9,614
|
|
$
12,926
|
|
$
12,825
|
|
$
10,118
|
Average rig margin
per operating day
|
|
$
4,521
|
|
$
7,806
|
|
$
5,275
|
|
$
5,236
|
|
$
10,091
|
|
|
(1)
|
Rig operating days
represent the number of days our rigs are earning revenue under a
contract during the period, including days that standby revenues
are earned. For the three months ended September 30 and June
30, 2017 there were zero operating days in which the Company earned
revenue on a standby basis. For the three months ended September
30, 2016 there were 236.0 operating days in which the Company
earned revenue on a standby basis including 222.0
standby-without-crew days. For the nine months ended
September 30, 2017 and 2016 there were 77.9 and 790.1 operating
days in which the Company earned revenue on a standby basis,
respectively, including 69.0 and 747.0 standby-without-crew days,
respectively.
|
|
|
(2)
|
Average number of
operating rigs is calculated by dividing the total number of rig
operating days in the period by the total number of calendar days
in the period.
|
|
|
(3)
|
Rig utilization is
calculated as rig operating days divided by the total number of
days our drilling rigs are available during the applicable period.
During the third quarter of 2015, we elected to remove our two 100
Series non-walking rigs from the marketed fleet pending completion
of their planned rig conversions to 200 Series, pad-optimal
status. The conversion of the first 100 series rig was
completed during the second quarter of 2016 and the rig re-entered
the marketed fleet in June 2016. The conversion of the second
100 series rig was completed in the second quarter of 2017 and the
rig began operating in July 2017.
|
|
|
(4)
|
Average revenue per
operating day represents total contract drilling revenues earned
during the period divided by rig operating days in the
period. Excluded in calculating average revenue per operating
day are revenues associated with the reimbursement of out-of-pocket
costs paid by customers of $1.2 million, $1.0 million and $1.1
million for the three months ended September 30, 2017 and 2016 and
June 30, 2017, respectively, and $3.2 million and $2.6 million for
the nine months ended September 30, 2017 and 2016,
respectively. Included in calculating average revenue per
operating day for the nine months ended September 30, 2016 was $1.8
million of early termination revenues associated with a contract
termination at the end of the first quarter of 2016. The third
quarter of 2017 and 2016 and the second quarter of 2017 did not
include any early termination revenues.
|
|
|
(5)
|
Average cost per
operating day represents total direct operating costs incurred
during the period divided by rig operating days in the
period. The following costs are excluded in calculating
average cost per operating day: (i) out-of-pocket costs reimbursed
by customers of $1.2 million, $1.0 million and $1.1 million for the
three months ended September 30, 2017 and 2016 and June 30, 2017,
respectively, and $3.2 million and $2.6 million for the nine months
ended September 30, 2017 and 2016, respectively, (ii) new crew
training costs of zero, $0.4 million and $0.1 million for the three
months ended September 30, 2017 and 2016 and June 30, 2017,
respectively, and $0.1 million and $0.4 million for the nine months
ended September 30, 2017 and 2016, respectively, (iii) construction
overhead costs expensed due to reduced rig construction activity of
$0.4 million, $0.3 million and zero for the three months ended
September 30, 2017 and 2016 and June 30, 2017, respectively, and
$0.6 million and $1.3 million for the nine months ended September
30, 2017 and 2016, respectively, (iv) rig reactivation costs for
the three months ended September 30, 2017 and 2016 and June 30,
2017 of zero, $2.1 million and $0.3 million, respectively,
(excluding zero, $0.4 million and $0.1 million of new crew training
costs (included in (ii) above), respectively), and $1.0 million and
$2.1 million for the nine months ended September 30, 2017 and 2016,
respectively, (excluding $0.1 million and $0.4 million of new crew
training costs (included in (ii) above), respectively), and (v)
out-of-pocket expenses of $0.1 million, net of insurance
recoveries, incurred as a result of damage to one of our rig's mast
during the nine months ended September 30, 2017.
|
Non-GAAP Financial Measures
Adjusted net loss, EBITDA and adjusted EBITDA are supplemental
non-GAAP financial measures that are used by management and
external users of our financial statements, such as industry
analysts, investors, lenders and rating agencies. In
addition, adjusted EBITDA is consistent with how EBITDA is
calculated under our revolving credit facility for purposes of
determining our compliance with various financial covenants.
We define "EBITDA" as earnings (or loss) before interest, taxes,
depreciation, and amortization, and we define "adjusted EBITDA" as
EBITDA before stock-based compensation, non-cash asset impairments,
gains or losses on disposition of assets, and other non-recurring
items added back to, or subtracted from, net income for purposes of
calculating EBITDA under our revolving credit facility.
Neither adjusted net loss, EBITDA or adjusted EBITDA is a measure
of net income as determined by U.S. generally accepted accounting
principles ("GAAP").
Management believes adjusted net loss, EBITDA and adjusted
EBITDA are useful because they allow our stockholders to more
effectively evaluate our operating performance and compliance with
various financial covenants under our revolving credit facility and
compare the results of our operations from period to period and
against our peers without regard to our financing methods or
capital structure or non-recurring, non-cash transactions. We
exclude the items listed above from net income (loss) in
calculating adjusted net loss, EBITDA and adjusted EBITDA because
these amounts can vary substantially from company to company within
our industry depending upon accounting methods and book values of
assets, capital structures and the method by which the assets were
acquired. None of adjusted net loss, EBITDA or adjusted EBITDA
should be considered an alternative to, or more meaningful than,
net income (loss), the most closely comparable financial measure
calculated in accordance with GAAP or as an indicator of our
operating performance or liquidity. Certain items excluded from
adjusted net loss, EBITDA and adjusted EBITDA are significant
components in understanding and assessing a company's financial
performance, such as a company's return of assets, cost of capital
and tax structure. Our presentation of adjusted net loss, EBITDA
and adjusted EBITDA should not be construed as an inference that
our results will be unaffected by unusual or non-recurring
items. Our computations of adjusted net loss, EBITDA and
adjusted EBITDA may not be comparable to other similarly titled
measures of other companies.
Reconciliation of
Net Loss to Adjusted Net Loss:
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September 30,
2017
|
|
September 30,
2016
|
|
June 30,
2017
|
|
September 30,
2017
|
|
September 30,
2016
|
|
Amount
|
|
Per
Share
|
|
Amount
|
|
Per
Share
|
|
Amount
|
|
Per
Share
|
|
Amount
|
|
Per
Share
|
|
Amount
|
|
Per
Share
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$(5,980)
|
|
$(0.16)
|
|
$(7,198)
|
|
$(0.19)
|
|
$(6,304)
|
|
$(0.17)
|
|
$(18,553)
|
|
$(0.49)
|
|
$(11,803)
|
|
$(0.37)
|
Asset
impairment, net (1)
|
899
|
|
0.03
|
|
-
|
|
-
|
|
546
|
|
0.02
|
|
1,574
|
|
0.04
|
|
-
|
|
-
|
Loss on
disposition of assets, net (2)
|
-
|
|
-
|
|
676
|
|
0.02
|
|
745
|
|
0.02
|
|
1,573
|
|
0.04
|
|
588
|
|
0.02
|
Write-off of deferred financing costs
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
504
|
|
0.01
|
Stock-based compensation - executive retirement
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(67)
|
|
-
|
Executive retirement
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,552
|
|
0.05
|
Adjusted net
loss
|
$(5,081)
|
|
$(0.13)
|
|
$(6,522)
|
|
$(0.17)
|
|
$(5,013)
|
|
$(0.13)
|
|
$(15,406)
|
|
$(0.41)
|
|
$
(9,226)
|
|
$(0.29)
|
Reconciliation of
Net Loss to EBITDA and Adjusted EBITDA:
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September 30,
2017
|
|
September 30,
2016
|
|
June 30,
2017
|
|
September 30,
2017
|
|
September 30,
2016
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Net loss
|
$(5,980)
|
|
$(7,198)
|
|
$(6,304)
|
|
$(18,553)
|
|
$(11,803)
|
Add back:
|
|
|
|
|
|
|
|
|
|
Income
tax expense
|
30
|
|
32
|
|
34
|
|
110
|
|
67
|
Interest
expense
|
772
|
|
456
|
|
686
|
|
2,088
|
|
2,492
|
Depreciation and amortization
|
6,529
|
|
6,010
|
|
6,335
|
|
19,120
|
|
17,651
|
Asset
impairment, net (1)
|
899
|
|
-
|
|
546
|
|
1,574
|
|
-
|
EBITDA
|
2,250
|
|
(700)
|
|
1,297
|
|
4,339
|
|
8,407
|
Loss on
disposition of assets, net (2)
|
-
|
|
676
|
|
745
|
|
1,573
|
|
588
|
Stock-based compensation
|
867
|
|
976
|
|
1,157
|
|
3,036
|
|
3,336
|
Stock-based compensation - executive retirement
|
-
|
|
-
|
|
-
|
|
-
|
|
(67)
|
Executive retirement
|
-
|
|
-
|
|
-
|
|
-
|
|
1,552
|
Adjusted
EBITDA
|
$ 3,117
|
|
$ 952
|
|
$ 3,199
|
|
$ 8,948
|
|
$ 13,816
|
|
|
(1)
|
In the third quarter
of 2017, we recorded a $0.6 million, or $0.02 per share, non-cash
impairment of the Galayda facility as a result of water-related
damage from the heavy rainfall that occurred during Hurricane
Harvey in August 2017, as well as a $0.3 million, or $0.01 per
share, non-cash impairment representing the estimated damage to a
piece of drilling equipment, net of insurance recoveries. In
the second quarter of 2017, we recorded a $0.5 million, or $0.02
per share, non-cash impairment reflecting the estimated loss from
the expected sale of our Galayda facility.
|
|
|
(2)
|
In the third quarter
of 2016, we recorded a loss on disposition of assets of $0.7
million, or $0.02 per share, primarily due to non-cash disposal of
equipment in connection with the upgrade of rigs to 7,500 psi mud
systems. In the second quarter of 2017, we recorded a loss on
disposition of assets of $0.7 million, or $0.02 per share,
primarily due a loss on the sale of drilling equipment previously
designated as held for sale.
|
INVESTOR CONTACTS:
Independence Contract Drilling,
Inc.
E-mail inquiries to: Investor.relations@icdrilling.com
Phone inquiries: (281) 598-1211
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SOURCE Independence Contract Drilling, Inc.