HOUSTON, Nov. 6, 2018 /PRNewswire/ -- Independence
Contract Drilling, Inc. (the "Company") (NYSE: ICD) today reported
financial results for the three months ended September 30, 2018.
Third Quarter 2018 Highlights
- Record quarterly revenues of $28.4
million.
- Net loss of $3.9 million, or
$0.10 per share.
- Adjusted net loss, as defined below, of $1.8 million, or $0.05 per share.
- Adjusted EBITDA, as defined below, of $6.8 million.
- Fleet utilization of 99.0%.
- Record revenue days of 1,345.
- Fully-burdened margin per day of $7,552 per day.
In the third quarter of 2018, the Company reported record
quarterly revenues of $28.4 million,
a net loss of $3.9 million, or
$0.10 per share, an adjusted net loss
(defined below) of $1.8 million, or
$0.05 per share, and adjusted EBITDA
(defined below) of $6.8
million. This compares to revenues of $25.8 million, a net loss of $3.3 million, or $0.09 per share, an adjusted net loss of
$3.2 million, or $0.08 per share, and adjusted EBITDA of
$5.0 million in the second quarter of
2018, and revenues of $23.4 million,
a net loss of $6.0 million, or
$0.16 per share, an adjusted net loss
of $5.1 million, or $0.13 per share, and adjusted EBITDA of
$3.1 million in the third quarter of
2017.
Chief Executive Officer Anthony
Gallegos commented, "Demand for pad-optimal rigs remains
strong and contracts continue to roll to market dayrates. With what
we see as robust demand for pad-optimal rigs for the foreseeable
future, we are placing orders for the long-lead time items
necessary to complete the conversion of our three operating, and
one idle, SCR rigs to AC, full pad-optimal status. These
converted rigs will be marketed with enhanced '300 series'
capabilities, including 25,000+ ft. racking capacity, one million
lbs. hook-load, 2,000 HP drawworks, 7,500 psi mud systems, three
mud pumps, and drilling optimization software and controls making
them the highest specification rigs in our fleet and amongst the
highest specification rigs in the industry. We plan to have
all of these conversions complete by the end of 2019, and the final
specifications for each rig will be determined based on the
contracts we secure.
On the integration front, the harmonization of systems and
processes is in full gear and on schedule. These efforts have
already led to the identification of additional transaction
synergies, which we now expect to exceed $10
million once the integration process is complete.
Following the closing of the Sidewinder combination on
October 1, 2018, we are now operating
31 rigs. We are contracting our remaining marketed but idle rig,
which we expect to commence drilling operations by year end, and we
have begun optimizing rig placements across our customer base with
the signing of three additional term contracts at market
dayrates."
Quarterly Operational Results
Operating results for third quarter of 2018 did not include any
benefits from the Sidewinder combination, which closed subsequent
to quarter end on October 1,
2018.
In the third quarter of 2018, the Company's fleet operated at
99.0% utilization and recorded 1,345 revenue days, compared to
99.3% utilization and recorded 1,265 revenue days in the second
quarter of 2018, and 98.0% utilization and 1,235 revenue days in
the third quarter of 2017.
Operating revenues in the third quarter of 2018 totaled
$28.4 million, compared to
$25.8 million in the second quarter
of 2018 and $23.4 million in the
third quarter of 2017. Revenue per day in the third quarter
of 2018 was $20,538, compared to
$19,411 in the second quarter of 2018
and $18,034 in the third quarter of
2017. Sequential revenue-per-day improvements were driven by
increased pricing on contract renewals and introduction of the
Company's 15th ShaleDriller® rig into the fleet.
Operating costs in the third quarter of 2018 totaled
$18.4 million, compared to
$18.0 million in the second quarter
of 2018 and $18.2 million in the
third quarter of 2017. Fully-burdened operating costs,
excluding reactivation and rig construction costs, were
$12,986 per day in the third quarter
of 2018, compared to $13,034 in the
second quarter of 2018 and $13,513 in
the third quarter of 2017. The sequential decrease in cost
per day related primarily to increased absorption of support group
costs across the rig fleet.
Fully-burdened rig operating margins, excluding reactivation and
rig construction costs, in the third quarter of 2018 were
$7,552 per day, compared to
$6,377 per day in the second quarter
of 2018 and $4,521 per day in the
third quarter of 2017. Sequential improvements of 18% in rig
margin per day resulted from significant flow through associated
with increasing contractual dayrates and lower costs per
day.
Selling, general and administrative expenses in the third
quarter of 2018 were $3.9 million
(including $0.7 million of non-cash
stock-based compensation), compared to $3.5
million (including $0.7
million of non-cash stock-based compensation) in the second
quarter of 2018 and $2.9 million
(including $0.9 million of non-cash
stock-based compensation) in the third quarter of 2017.
Sequential increases in SG&A were primarily associated with
higher incentive compensation expense.
In the third quarter of 2018, merger expenses directly
associated with the strategic combination with Sidewinder Drilling
LLC were $1.9 million, compared to
$0.4 million in the second quarter of
2018, consisting primarily of legal and other professional
fees.
Drilling Operations Update
Following completion of the Sidewinder combination, the Company
is operating 31 drilling rigs and is in the process of reactivating
an idle rig that is expected to commence drilling operations by the
end of 2018.
The Company's September 30, 2018
pro forma backlog of revenues from contracts, with original terms
of six months or more, including rigs acquired in the Sidewinder
combination, was $154.6
million. Approximately $56.8
million of this backlog is expected to be realized during
the remainder of 2018.
Capital Expenditures and Liquidity Update
Aggregate cash outlays for capital expenditures in the third
quarter of 2018, net of disposals, were $11.4 million, including $9.0 million of payments for second quarter 2018
deliveries. The Company's aggregate capital expenditure
budget for the fourth quarter of 2018 is $6.0 million, including approximately
$3.0 million associated with the
reactivation of the Company's remaining marketed but idle rig and
down payments on long lead-time items required to complete the
conversion of the Company's three operating, and one idle, SCR rigs
to AC, pad-optimal status in 2019.
In connection with closing of the Sidewinder combination on
October 1, 2018, the Company received
net proceeds of $127.4 million
associated with the funding of a $130
million term loan. Net proceeds from this term loan
were utilized to repay in full all of ICD's outstanding bank debt
as well as $58.5 million of debt
assumed pursuant to the Sidewinder combination. The Company
also entered into a new $40 million
revolving credit facility, with an initial receivables-based
borrowing base of $35.1
million. Approximately $5.0
million was advanced under this credit facility at closing
to fund transaction costs due at closing.
Conference Call Details
A conference call for investors will be held today, November 6, 2018, at 11:00
a.m. Central Time (12:00 p.m. Eastern
Time) to discuss the Company's third quarter 2018
results.
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
10124941. The replay will be available until November 13, 2018.
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,
2018
|
|
December 31,
2017
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
2,965
|
|
$
2,533
|
Accounts receivable,
net
|
23,728
|
|
18,056
|
Inventories
|
|
3,087
|
|
2,710
|
Assets held for
sale
|
3,898
|
|
4,637
|
Prepaid expenses and
other current assets
|
4,188
|
|
2,957
|
|
|
Total current
assets
|
37,866
|
|
30,893
|
Property, plant and
equipment, net
|
277,978
|
|
272,388
|
Other long-term
assets, net
|
1,763
|
|
1,364
|
|
|
Total
assets
|
$
317,607
|
|
$
304,645
|
Liabilities and
Stockholders' Equity
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Current portion of
long-term debt (1)
|
$
575
|
|
$
533
|
|
Accounts
payable
|
12,573
|
|
11,627
|
|
Accrued
liabilities
|
8,912
|
|
6,969
|
|
|
Total current
liabilities
|
22,060
|
|
19,129
|
|
Long-term debt
(2)
|
68,631
|
|
49,278
|
|
Deferred income
taxes, net
|
563
|
|
683
|
|
Other long-term
liabilities
|
632
|
|
73
|
|
|
Total
liabilities
|
91,886
|
|
69,163
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Common stock, $0.01
par value, 100,000,000 shares authorized;
38,597,447 and
38,246,919 shares issued, respectively; and 38,252,765 and
37,985,225 shares outstanding, respectively
|
383
|
|
380
|
|
Additional paid-in
capital
|
328,598
|
|
326,616
|
|
Accumulated
deficit
|
(101,041)
|
|
(89,645)
|
|
Treasury stock, at
cost, 344,682 and 261,694 shares, respectively
|
(2,219)
|
|
(1,869)
|
|
|
Total stockholders'
equity
|
225,721
|
|
235,482
|
|
|
Total liabilities and
stockholders' equity
|
$
317,607
|
|
$
304,645
|
|
|
(1)
|
Current portion of
long-term debt relates to the current portion of vehicle capital
lease obligations.
|
(2)
|
As of September 30,
2018, long-term debt includes $714 thousand of long-term vehicle
capital lease obligations. As of December 31, 2017, long-term
debt included $737 thousand 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,
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
28,439
|
|
$
23,445
|
|
$ 25,754
|
|
$ 79,820
|
|
$ 64,966
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
18,420
|
|
18,247
|
|
17,966
|
|
55,312
|
|
48,953
|
|
Selling, general and
administrative
|
3,903
|
|
2,948
|
|
3,495
|
|
10,877
|
|
10,101
|
|
Merger
expenses
|
1,933
|
|
-
|
|
443
|
|
2,376
|
|
-
|
|
Depreciation and
amortization
|
6,831
|
|
6,529
|
|
6,579
|
|
20,001
|
|
19,120
|
|
Asset impairment,
net
|
431
|
|
899
|
|
-
|
|
396
|
|
1,574
|
|
(Gain) loss on
disposition of assets, net
|
(260)
|
|
-
|
|
(333)
|
|
(675)
|
|
1,573
|
|
|
Total cost and
expenses
|
31,258
|
|
28,623
|
|
28,150
|
|
88,287
|
|
81,321
|
|
|
Operating
loss
|
(2,819)
|
|
(5,178)
|
|
(2,396)
|
|
(8,467)
|
|
(16,355)
|
Interest
expense
|
(1,168)
|
|
(772)
|
|
(938)
|
|
(3,049)
|
|
(2,088)
|
|
|
Loss before income
taxes
|
(3,987)
|
|
(5,950)
|
|
(3,334)
|
|
(11,516)
|
|
(18,443)
|
Income tax (benefit)
expense
|
(50)
|
|
30
|
|
(21)
|
|
(120)
|
|
110
|
|
|
Net loss
|
$ (3,937)
|
|
$ (5,980)
|
|
$
(3,313)
|
|
$ (11,396)
|
|
$ (18,553)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
$
(0.10)
|
|
$
(0.16)
|
|
$
(0.09)
|
|
$
(0.30)
|
|
$
(0.49)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
38,253
|
|
37,839
|
|
38,253
|
|
38,210
|
|
37,688
|
INDEPENDENCE
CONTRACT DRILLING, INC.
|
Unaudited
|
(in
thousands)
|
|
STATEMENTS OF CASH
FLOWS
|
|
|
Nine Months Ended
September 30,
|
|
2018
|
|
2017
|
|
|
Cash flows from
operating activities
|
|
|
|
Net loss
|
$
(11,396)
|
|
$
(18,553)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities
|
|
|
|
Depreciation and amortization
|
20,001
|
|
19,120
|
Asset impairment, net
|
396
|
|
1,574
|
Stock-based compensation
|
2,080
|
|
3,036
|
(Gain) loss on disposition of assets, net
|
(675)
|
|
1,573
|
Amortization of deferred rent
|
60
|
|
-
|
Deferred income taxes
|
(120)
|
|
110
|
Amortization of deferred financing costs
|
290
|
|
344
|
Bad debt expense
|
22
|
|
-
|
Changes in operating assets and liabilities
|
|
|
|
Accounts
receivable
|
(5,694)
|
|
(4,343)
|
Inventories
|
(116)
|
|
(257)
|
Prepaid
expenses and other assets
|
(1,212)
|
|
(1,037)
|
Accounts
payable and accrued liabilities
|
2,535
|
|
655
|
Net cash provided by operating activities
|
6,171
|
|
2,222
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Purchases of
property, plant and equipment
|
(24,804)
|
|
(26,975)
|
Proceeds from
insurance claims
|
257
|
|
-
|
Proceeds from the
sale of assets
|
487
|
|
1,088
|
Net cash used in investing activities
|
(24,060)
|
|
(25,887)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Borrowings under
Credit Facility
|
50,526
|
|
38,410
|
Repayments under
Credit Facility
|
(31,150)
|
|
(17,162)
|
Purchase of treasury
stock
|
(350)
|
|
(162)
|
RSUs withheld for
taxes
|
(95)
|
|
(853)
|
Financing costs
paid
|
(114)
|
|
(538)
|
Payments for capital
lease obligations
|
(496)
|
|
(449)
|
Net cash provided by financing activities
|
18,321
|
|
19,246
|
Net increase (decrease) in cash and cash equivalents
|
432
|
|
(4,419)
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
Beginning of
period
|
2,533
|
|
7,071
|
End of
period
|
$
2,965
|
|
$
2,652
|
|
|
|
|
Supplemental
disclosure of cash flow information
|
|
|
|
Cash paid during the
period for interest
|
$
2,971
|
|
$
1,865
|
Supplemental
disclosure of non-cash investing and financing
activity
|
|
|
|
Change in property,
plant and equipment purchases in accounts payable
|
$
(264)
|
|
$
(3,648)
|
Additions to
property, plant and equipment through capital leases
|
$
515
|
|
$
822
|
Additions to
property, plant and equipment through tenant allowance on leasehold
improvement
|
$
694
|
|
$
-
|
Additions to deferred
financing costs in accounts payable
|
$
423
|
|
$
-
|
The following table provides various financial and operational
data for the Company's operations the three months ending
September 30, 2018 and 2017 and
June 30, 2018 and the nine months
ending September 30, 2018 and
2017. 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,
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
Number of completed
rigs end of period(1)
|
|
15
|
|
14
|
|
14
|
|
15
|
|
14
|
Rig operating
days(2)
|
|
1,345.1
|
|
1,234.7
|
|
1,264.7
|
|
3,869.2
|
|
3,418.9
|
Average number of
operating rigs(3)
|
|
14.6
|
|
13.4
|
|
13.9
|
|
14.2
|
|
12.5
|
Rig utilization
(4)
|
|
99.0%
|
|
98.0%
|
|
99.3%
|
|
99.4%
|
|
94.6%
|
Average revenue per
operating day (5)
|
|
$
20,538
|
|
$
18,034
|
|
$ 19,411
|
|
$
19,687
|
|
$
18,061
|
Average cost per
operating day(6)
|
|
$
12,986
|
|
$
13,513
|
|
$ 13,034
|
|
$
13,141
|
|
$
12,825
|
Average rig margin
per operating day
|
|
$
7,552
|
|
$
4,521
|
|
$
6,377
|
|
$
6,546
|
|
$
5,236
|
|
|
(1)
|
Our 15th ShaleDriller
rig commenced operations during the third quarter of
2018.
|
|
|
(2)
|
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. During the three and nine months ended
September 30, 2018 and the three months ended June 30, 2018 we
did not earn any revenue on a standby basis. During the three
and nine months ended September 30, 2017, there were zero and
77.9 operating days, respectively, in which we earned revenue on a
standby basis, including zero and 69.0 standby-without-crew days,
respectively.
|
|
|
(3)
|
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.
|
|
|
(4)
|
Rig utilization is
calculated as rig operating days divided by the total number of
days our drilling rigs are available during the applicable
period.
|
|
|
(5)
|
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 $0.8 million, $1.2 million and $1.2
million during the three months ended September 30, 2018 and
2017 and June 30, 2018, respectively, and $3.6 million and $3.2
million during the nine months ended September 30, 2018 and
2017, respectively.
|
|
|
(6)
|
Average cost per
operating day represents 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 $0.8 million,
$1.2 million and $1.2 million during the three months ended
September 30, 2018 and 2017 and June 30, 2018, respectively,
and $3.6 million and $3.2 million for the nine months ended
September 30, 2018 and 2017, respectively, (ii) new crew
training costs of zero, zero and $68.0 thousand during the three
months ended September 30, 2018 and 2017 and June 30, 2018,
respectively, and $0.1 million and $0.1 million during the nine
months ended September 30, 2018 and 2017, respectively, (iii)
construction overhead costs expensed due to reduced rig
construction activity of $0.1 million, $0.4 million and $0.2
million during the three months ended September 30, 2018 and
2017 and June 30, 2018, respectively, and $0.7 million and $0.6
million during the nine months ended September 30, 2018 and
2017, respectively, (iv) rig reactivation costs associated with the
redeployment of previously stacked rigs, excluding new crew
training costs (included in (ii) above), of zero and $1.0 million
during the three and nine months ended September 30, 2017,
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 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 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 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 on 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,
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
Amount
|
|
Per
Share
|
|
Amount
|
|
Per
Share
|
|
Amount
|
|
Per
Share
|
|
Amount
|
|
Per
Share
|
|
Amount
|
|
Per
Share
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
(3,937)
|
|
$
(0.10)
|
|
$
(5,980)
|
|
$
(0.16)
|
|
$
(3,313)
|
|
$
(0.09)
|
|
$
(11,396)
|
|
$
(0.30)
|
|
$
(18,553)
|
|
$
(0.49)
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
impairment, net (1)
|
431
|
|
0.01
|
|
899
|
|
0.03
|
|
-
|
|
-
|
|
396
|
|
0.01
|
|
1,574
|
|
0.04
|
(Gain) loss on
disposition of assets, net(2)
|
(260)
|
|
(0.01)
|
|
-
|
|
-
|
|
(333)
|
|
-
|
|
(675)
|
|
(0.01)
|
|
1,573
|
|
0.04
|
Merger
expenses(3)
|
1,933
|
|
0.05
|
|
-
|
|
-
|
|
443
|
|
0.01
|
|
2,376
|
|
0.06
|
|
-
|
|
-
|
Adjusted net
loss
|
$
(1,833)
|
|
$
(0.05)
|
|
$
(5,081)
|
|
$
(0.13)
|
|
$
(3,203)
|
|
$
(0.08)
|
|
$
(9,299)
|
|
$
(0.24)
|
|
$
(15,406)
|
|
$
(0.41)
|
Reconciliation of
Net Loss to EBITDA and Adjusted EBITDA:
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
(3,937)
|
|
$
(5,980)
|
|
$ (3,313)
|
|
$
(11,396)
|
|
$
(18,553)
|
Add back:
|
|
|
|
|
|
|
|
|
|
Income
tax (benefit) expense
|
(50)
|
|
30
|
|
(21)
|
|
(120)
|
|
110
|
Interest
expense
|
1,168
|
|
772
|
|
938
|
|
3,049
|
|
2,088
|
Depreciation and amortization
|
6,831
|
|
6,529
|
|
6,579
|
|
20,001
|
|
19,120
|
Asset
impairment, net(1)
|
431
|
|
899
|
|
-
|
|
396
|
|
1,574
|
EBITDA
|
4,443
|
|
2,250
|
|
4,183
|
|
11,930
|
|
4,339
|
(Gain)
loss on disposition of assets, net(2)
|
(260)
|
|
-
|
|
(333)
|
|
(675)
|
|
1,573
|
Stock-based compensation
|
718
|
|
867
|
|
718
|
|
2,080
|
|
3,036
|
Merger
expenses(3)
|
1,933
|
|
-
|
|
443
|
|
2,376
|
|
-
|
Adjusted
EBITDA
|
$
6,834
|
|
$
3,117
|
|
$
5,011
|
|
$
15,711
|
|
$
8,948
|
(1)
|
In the third quarter
of 2018, we recorded a $0.4 million, or $0.01 per share, charge to
asset impairments, net, reflecting a $650 thousand estimated loss
from the expected sale of our Galayda facility, offset by a $219
thousand insurance recovery related to some damaged
equipment. In the third quarter of 2017 we recorded a $0.9
million, or $0.03 per share, non-cash charge consisting of a $0.6
million impairment to our Galayda facility as a result of damage
associated with Hurricane Harvey in August 2017, as well as a
non-cash impairment representing the estimated damage to a piece of
drilling equipment, net of estimated insurance recoveries totaling
$0.3 million.
|
|
|
(2)
|
In the third and
second quarters of 2018, we recorded a gain on disposition of
assets of $0.3 million and $0.3 million, respectively, both
primarily due to gains on the sale or disposition of miscellaneous
drilling equipment.
|
|
|
(3)
|
In the third and
second quarters of 2018, we incurred $1.9 million and $0.4 million,
respectively, of costs directly associated with a merger
combination with Sidewinder Drilling LLC.
|
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.