HOUSTON, May 4, 2021
/PRNewswire/ -- Independence Contract Drilling, Inc. (the
"Company" or "ICD") (NYSE: ICD) today reported financial results
for the three months ended March 31,
2021.
First quarter 2021 Highlights
- Net loss of $16.0 million, or
$2.58 per share.
- Adjusted net loss, as defined below, of $16.4 million, or $2.64 per share.
- Adjusted EBITDA loss, as defined below, of $2.0 million.
- Net debt, excluding finance leases and net of deferred
financing costs, of $132.1
million.
- Marketed fleet utilization of 43%.
- Fully burdened margin of $2,802
per day.
In the first quarter of 2021, the Company reported revenues of
$15.5 million, a net loss of
$16.0 million, or $2.58 per share, adjusted net loss (defined
below) of $16.4 million, or
$2.64 per share, and adjusted EBITDA
loss (defined below) of $2.0
million. These results compare to revenues of
$38.5 million, a net loss of
$28.2 million, or $7.53 per share, adjusted net loss of
$10.6 million, or $2.82 per share, and adjusted EBITDA of
$5.1 million in the first quarter of
2020, and revenues of $13.3 million,
a net loss of $43.1 million, or
$7.02 per share, an adjusted net loss
of $16.3 million, or $2.65 per share, and adjusted EBITDA of
$1.5 million in the fourth quarter of
2020.
Chief Executive Officer Anthony
Gallegos commented, "I am very pleased with our operational
performance during the first quarter of 2021. It played out
very much as expected as we safely and successfully reactivated
several rigs during the quarter. The reactivations were on
budget, and the rigs hit the ground running for our clients with
minimal downtime, in a few instances setting drilling records for
our clients right away. We have maintained strong cost
control and operational efficiency throughout this process, but I
am even more excited with the progress we made at quarter end and
so far during the second quarter. We continue to see
increasing demand for all of our rigs and are experiencing dayrate
improvement on renewals and reactivations across our fleet which
will drive sequential improvements in reported margins over at
least the remainder of the year. Demand for ICD rigs is being
driven not only by rig specification, but also by operating
performance as we have displaced several larger competitor rigs
with key customers. In particular, we are seeing strong
improvements in utilization for our 300 series rigs involving
customers drilling extended reach laterals or using high torque
drill strings. By the end of the second quarter, we expect to
have at least 15 rigs operating, of which six will be 300 series
rigs, and based upon inquiries to date and stable commodity prices,
we expect further reactivations during the back half of the year
and continued positive dayrate momentum."
Quarterly Operational Results
In the first quarter of 2021, operating days increased
sequentially by over 31% compared to the fourth quarter of
2020. The Company's marketed fleet operated at 43%
utilization and recorded 929 revenue days, compared to 1,738
revenue days in the first quarter of 2020, and 707 revenue days in
the fourth quarter of 2020. The Company currently expects
operating days in the second quarter of 2021 to increase
sequentially by approximately 22% compared to the first quarter of
2021.
Operating revenues in the first quarter of 2021 totaled
$15.5 million, compared to
$38.5 million in the first quarter of
2020 and $13.3 million in the fourth
quarter of 2020. Revenue per day in the first quarter of 2021
was $15,465, compared to $19,823 in the first quarter of 2020 and
$16,720 in the fourth quarter of
2020. Sequential decreases in revenue per day were driven by
the expiration of two higher-dayrate legacy contracts and higher
spot market exposure and one rig operating on a standby rate
through the majority of the quarter.
Operating costs in the first quarter of 2021 totaled
$14.5 million, compared to
$30.2 million in the first quarter of
2020 and $12.4 million in the fourth
quarter of 2020. Fully burdened operating costs were
$12,663 per day in the first quarter
of 2021, compared to $14,648 in the
first quarter of 2020 and $13,719 in
the fourth quarter of 2020. Sequential decreases in operating
costs per day were driven by efficiencies associated with increased
operating days as well as one rig operating on a standby basis
through the majority of the quarter.
Excluding the impact from early termination revenues and
reactivation costs, fully burdened rig operating margins in the
first quarter of 2021 were $2,802 per
day, compared to $5,175 per day in
the first quarter of 2020 and $3,001
per day in the fourth quarter of 2020. The Company currently
expects operating margins in the second quarter of 2021 to increase
sequentially by approximately 11% compared to the first quarter of
2021 driven primarily by favorable dayrate momentum. Based
upon recently signed contracts, further sequential improvements in
margin per day are expected to occur during the third quarter of
2021 as well.
Selling, general and administrative expenses in the first
quarter of 2021 were $3.7 million
(including $0.7 million of non-cash
compensation), compared to $3.8
million (including $0.6
million of non-cash compensation) in the first quarter of
2020 and $3.4 million (including
$0.4 million of non-cash
compensation) in the fourth quarter of 2020. Sequential
increases in cash selling, general and administrative expenses were
associated with current year incentive compensation accruals,
seasonal year end audit and related costs, and expenses associated
with recently granted at-risk, performance-based long-term
incentive awards.
Drilling Operations Update
The Company operated twelve rigs during the first quarter of
2021, including three rigs that were reactivated during the
quarter. Overall, the Company's operating rig count averaged 10.3
rigs during the quarter. The Company expects to exit the
second quarter of 2021 with 15 rigs operating based upon recently
signed contracts in place and ongoing contractual
negotiations. The Company's backlog of drilling contracts
with original terms of six months or longer was $12.1 million as of March 31, 2021.
All of this backlog is expected to be realized during the remainder
of 2021.
Capital Expenditures and Liquidity Update
Cash outlays for capital expenditures in the first quarter of
2021 were $1.7 million, offset by
asset sales and recoveries of $0.7
million.
As of March 31, 2021, the Company had cash on hand of
$5.4 million, an undrawn revolving
line of credit with availability of $7.7
million based upon eligible accounts receivable,
$130 million principal amount
outstanding under its term loan, and $10
million outstanding under a loan issued under the Payroll
Protection Program ("PPP") under the CARES Act. The term loan
includes a committed $15 million
accordion that remains undrawn.
During the first quarter of 2021, the Company continued its
at-the-market ("ATM") common stock offering with a maximum approved
offering amount of $2.2
million. During the first quarter of 2021, the Company
issued 140,377 shares of common stock pursuant to this program at a
weighted average gross selling price of $4.64 per share, resulting in gross proceeds to
the Company of $0.7 million.
During the quarter, the Company also issued 174,100 shares pursuant
to the terms of its equity line of credit at a weighted average
gross selling price of $5.02 per
share, resulting in gross proceeds to the Company of $0.9 million.
Conference Call Details
A conference call for investors will be held today, May 4,
2021, at 11:00 a.m. Central Time
(12:00 p.m. Eastern Time) to discuss
the Company's first quarter 2021 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
10153764. The replay will be available until May 11, 2021.
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)
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
March 31,
2021
|
|
December 31,
2020
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
5,440
|
|
|
$
|
12,279
|
|
Accounts receivable,
net
|
10,340
|
|
|
10,023
|
|
Inventories
|
1,071
|
|
|
1,038
|
|
Assets held for
sale
|
507
|
|
|
—
|
|
Prepaid expenses and
other current assets
|
3,920
|
|
|
4,102
|
|
Total current
assets
|
21,278
|
|
|
27,442
|
|
Property, plant and
equipment, net
|
373,749
|
|
|
382,239
|
|
Other long-term
assets, net
|
3,271
|
|
|
3,528
|
|
Total
assets
|
$
|
398,298
|
|
|
$
|
413,209
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Liabilities
|
|
|
|
Current portion of
long-term debt (1)
|
$
|
12,093
|
|
|
$
|
7,637
|
|
Accounts
payable
|
4,837
|
|
|
4,072
|
|
Accrued
liabilities
|
9,472
|
|
|
10,723
|
|
Total current
liabilities
|
26,402
|
|
|
22,432
|
|
Long-term debt
(2)
|
132,954
|
|
|
137,633
|
|
Merger consideration
payable to an affiliate
|
2,902
|
|
|
2,902
|
|
Deferred income taxes,
net
|
539
|
|
|
505
|
|
Other long-term
liabilities
|
2,655
|
|
|
2,704
|
|
Total
liabilities
|
165,452
|
|
|
166,176
|
|
Stockholders'
equity
|
|
|
|
Common stock, $0.01 par
value, 50,000,000 shares authorized;
6,594,158 and 6,254,396 shares issued, respectively, and
6,515,580
and 6,175,818 shares outstanding, respectively
|
65
|
|
|
62
|
|
Additional paid-in
capital
|
519,783
|
|
|
517,948
|
|
Accumulated
deficit
|
(283,089)
|
|
|
(267,064)
|
|
Treasury stock, at
cost, 78,578 shares and 78,578 shares, respectively
|
(3,913)
|
|
|
(3,913)
|
|
Total stockholders'
equity
|
232,846
|
|
|
247,033
|
|
Total liabilities and
stockholders' equity
|
$
|
398,298
|
|
|
$
|
413,209
|
|
|
(1) As of
March 31, 2021 and December 31, 2020, current portion of
long-term debt includes $3.5 million and $3.4 million,
respectively, of finance lease obligations. As of
March 31, 2021 and December 31, 2020, current portion of
long-term debt also includes $8.6 million and $4.3 million,
respectively, related to the PPP Loan.
|
|
(2) As of
March 31, 2021 and December 31, 2020, long-term debt
includes $3.9 million and $4.6 million, respectively, of long-term
finance lease obligations. As of March 31, 2021 and
December 31, 2020, long-term debt also includes $1.4 million
and $5.7 million, respectively, related to the PPP Loan.
|
INDEPENDENCE
CONTRACT DRILLING, INC.
|
Unaudited
|
(in thousands,
except par value and share data)
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
2021
|
|
2020
|
|
2020
|
|
|
|
|
|
|
Revenues
|
$
|
15,542
|
|
|
$
|
38,494
|
|
|
$
|
13,319
|
|
Costs and
expenses
|
|
|
|
|
|
Operating
costs
|
14,541
|
|
|
30,229
|
|
|
12,380
|
|
Selling, general and
administrative
|
3,686
|
|
|
3,761
|
|
|
3,383
|
|
Severance
expense
|
—
|
|
|
1,076
|
|
|
—
|
|
Depreciation and
amortization
|
9,989
|
|
|
11,516
|
|
|
10,581
|
|
Asset
impairment
|
43
|
|
|
16,619
|
|
|
24,388
|
|
(Gain) loss on
disposition of assets, net
|
(435)
|
|
|
(46)
|
|
|
1,931
|
|
Total costs and
expenses
|
27,824
|
|
|
63,155
|
|
|
52,663
|
|
Operating
loss
|
(12,282)
|
|
|
(24,661)
|
|
|
(39,344)
|
|
Interest
expense
|
(3,709)
|
|
|
(3,604)
|
|
|
(3,815)
|
|
Loss before income
taxes
|
(15,991)
|
|
|
(28,265)
|
|
|
(43,159)
|
|
Income tax expense
(benefit)
|
34
|
|
|
(42)
|
|
|
(63)
|
|
Net loss
|
$
|
(16,025)
|
|
|
$
|
(28,223)
|
|
|
$
|
(43,096)
|
|
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
|
Basic and
diluted
|
$
|
(2.58)
|
|
|
$
|
(7.53)
|
|
|
$
|
(7.02)
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
Basic and
diluted
|
6,215
|
|
|
3,750
|
|
|
6,135
|
|
INDEPENDENCE
CONTRACT DRILLING, INC.
|
Unaudited
|
(in thousands,
except par value and share data)
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
Cash flows from
operating activities
|
|
|
|
Net loss
|
$
|
(16,025)
|
|
|
$
|
(28,223)
|
|
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities
|
|
|
|
Depreciation and
amortization
|
9,989
|
|
|
11,516
|
|
Asset
impairment
|
43
|
|
|
16,619
|
|
Stock-based
compensation
|
537
|
|
|
570
|
|
Gain on disposition of
assets, net
|
(435)
|
|
|
(46)
|
|
Deferred income
taxes
|
34
|
|
|
(42)
|
|
Amortization of
deferred financing costs
|
279
|
|
|
204
|
|
Bad debt
expense
|
—
|
|
|
16
|
|
Changes in operating
assets and liabilities
|
|
|
|
Accounts
receivable
|
(317)
|
|
|
8,925
|
|
Inventories
|
(33)
|
|
|
(27)
|
|
Prepaid expenses and
other assets
|
323
|
|
|
(462)
|
|
Accounts payable and
accrued liabilities
|
(685)
|
|
|
(5,959)
|
|
Net cash (used in)
provided by operating activities
|
(6,290)
|
|
|
3,091
|
|
Cash flows from
investing activities
|
|
|
|
Purchases of
property, plant and equipment
|
(1,742)
|
|
|
(9,139)
|
|
Proceeds from the
sale of assets
|
654
|
|
|
628
|
|
Collection of
principal on note receivable
|
—
|
|
|
145
|
|
Net cash used in
investing activities
|
(1,088)
|
|
|
(8,366)
|
|
Cash flows from
financing activities
|
|
|
|
Borrowings under
Revolving ABL Credit Facility
|
—
|
|
|
11,038
|
|
Repayments under
Revolving ABL Credit Facility
|
(8)
|
|
|
(38)
|
|
Proceeds from
issuance of common stock through at-the-market facility, net of
issuance costs
|
521
|
|
|
—
|
|
Proceeds from
issuance of common stock under purchase agreement
|
874
|
|
|
—
|
|
Purchase of treasury
stock
|
—
|
|
|
(66)
|
|
RSUs withheld for
taxes
|
(11)
|
|
|
(26)
|
|
Payments for finance
lease obligations
|
(837)
|
|
|
(1,086)
|
|
Net cash provided by
financing activities
|
539
|
|
|
9,822
|
|
Net (decrease)
increase in cash and cash equivalents
|
(6,839)
|
|
|
4,547
|
|
Cash and cash
equivalents
|
|
|
|
Beginning of
period
|
12,279
|
|
|
5,206
|
|
End of
period
|
$
|
5,440
|
|
|
$
|
9,753
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
Supplemental
disclosure of cash flow information
|
|
|
|
Cash paid during the
period for interest
|
$
|
3,171
|
|
|
$
|
3,541
|
|
Supplemental
disclosure of non-cash investing and financing
activities
|
|
|
|
Change in property,
plant and equipment purchases in accounts payable
|
$
|
70
|
|
|
$
|
(5,285)
|
|
Additions to
property, plant and equipment through finance leases
|
$
|
376
|
|
|
$
|
55
|
|
Extinguishment of
finance lease obligations from sale of assets classified as
finance leases
|
$
|
—
|
|
|
$
|
(204)
|
|
Transfer of assets
from held and used to held for sale
|
$
|
(550)
|
|
|
$
|
—
|
|
The following table provides various financial and operational
data for the Company's operations for the three months ending
March 31, 2021 and 2020 and December 31, 2020. 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
|
|
March
31,
|
|
December
31,
|
|
2021
|
|
2020
|
|
2020
|
|
|
|
|
|
|
Number of marketed
rigs end of period (1)
|
24
|
|
|
29
|
|
|
24
|
|
Rig operating days
(2)
|
929
|
|
|
1,738
|
|
|
707
|
|
Average number of
operating rigs (3)
|
10.3
|
|
|
19.1
|
|
|
7.7
|
|
Rig utilization
(4)
|
43
|
%
|
|
66
|
%
|
|
27
|
%
|
Average revenue per
operating day (5)
|
$
|
15,465
|
|
|
$
|
19,823
|
|
|
$
|
16,720
|
|
Average cost per
operating day (6)
|
$
|
12,663
|
|
|
$
|
14,648
|
|
|
$
|
13,719
|
|
Average rig margin
per operating day
|
$
|
2,802
|
|
|
$
|
5,175
|
|
|
$
|
3,001
|
|
|
(1) Marketed
rigs exclude five idle rigs that will not be reactivated unless
market conditions materially improve.
|
|
(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.
|
|
(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 marketed 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 $1.2 million, $4.0 million
and $1.5 million during the three months ended March 31, 2021
and 2020, and December 31, 2020, 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 paid by customers of $1.2
million, $4.0 million and $1.5 million during the three months
ended March 31, 2021 and 2020, and December 31, 2020,
respectively; (ii) overhead costs expensed due to reduced rig
upgrade activity of $0.5 million, $0.6 million and $0.5 million
during the three months ended March 31, 2021 and 2020, and
December 31, 2020, respectively; and (iii) rig reactivation
costs, inclusive of new crew training costs, of $1.1 million, $0.2
million and $0.6 million during the three months ended
March 31, 2021 and 2020, and December 31, 2020,
respectively.
|
Non-GAAP Financial Measures
Adjusted net (loss) income, 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
"adjusted net (loss) income" as net (loss) income before: asset
impairment, net; (gain) loss on disposition of assets, net;
intangible revenue; severance and merger-related expenses; and
other adjustments. 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 facilities. Neither adjusted net (loss) income, 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) income, 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) income, 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) income,
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) income, 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) income, 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) income, 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)
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
2021
|
|
2020
|
|
2020
|
|
Amount
|
|
Per
Share
|
|
Amount
|
|
Per
Share
|
|
Amount
|
|
Per
Share
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(16,025)
|
|
|
$
|
(2.58)
|
|
|
$
|
(28,223)
|
|
|
$
|
(7.53)
|
|
|
$
|
(43,096)
|
|
|
$
|
(7.02)
|
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairment, net
(1)
|
43
|
|
|
0.01
|
|
|
16,619
|
|
|
4.43
|
|
|
24,388
|
|
|
3.98
|
|
(Gain) loss on
disposition of assets, net (2)
|
(435)
|
|
|
(0.07)
|
|
|
(46)
|
|
|
(0.01)
|
|
|
1,931
|
|
|
0.31
|
|
Severance expense
(3)
|
—
|
|
|
—
|
|
|
1,076
|
|
|
0.29
|
|
|
—
|
|
|
—
|
|
Purchase agreement
costs (4)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
497
|
|
|
0.08
|
|
Adjusted net
loss
|
$
|
(16,417)
|
|
|
$
|
(2.64)
|
|
|
$
|
(10,574)
|
|
|
$
|
(2.82)
|
|
|
$
|
(16,280)
|
|
|
$
|
(2.65)
|
|
Reconciliation of
Net Loss to EBITDA and Adjusted EBITDA:
|
|
|
(Unaudited)
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
2021
|
|
2020
|
|
2020
|
(in
thousands)
|
|
|
|
|
|
Net loss
|
$
|
(16,025)
|
|
|
$
|
(28,223)
|
|
|
$
|
(43,096)
|
|
Add back:
|
|
|
|
|
|
Income tax expense
(benefit)
|
34
|
|
|
(42)
|
|
|
(63)
|
|
Interest
expense
|
3,709
|
|
|
3,604
|
|
|
3,815
|
|
Depreciation and
amortization
|
9,989
|
|
|
11,516
|
|
|
10,581
|
|
Asset impairment, net
(1)
|
43
|
|
|
16,619
|
|
|
24,388
|
|
EBITDA
|
(2,250)
|
|
|
3,474
|
|
|
(4,375)
|
|
(Gain) loss on
disposition of assets, net (2)
|
(435)
|
|
|
(46)
|
|
|
1,931
|
|
Stock-based and
non-cash deferred compensation cost
|
673
|
|
|
570
|
|
|
425
|
|
Severance expense
(3)
|
—
|
|
|
1,076
|
|
|
—
|
|
Purchase agreement
costs (4)
|
—
|
|
|
—
|
|
|
497
|
|
Adjusted
EBITDA
|
$
|
(2,012)
|
|
|
$
|
5,074
|
|
|
$
|
(1,522)
|
|
|
(1) In the
first quarter of 2021, we recorded an asset impairment of $43
thousand related to the pending sale of one of our field location
facilities. In the first quarter of 2020, we recorded an
asset impairment of $16.6 million on rigs removed from our marketed
fleet, as well as certain other component equipment, inventory and
assets held for sale. During the fourth quarter of 2020, we
recorded an impairment charge of $24.4 million related to rigs
removed from our marketed fleet, as well as certain other component
equipment.
|
|
(2) In the
first quarter of 2021 and 2020, and the fourth quarter of 2020, we
recorded a gain, gain and loss, respectively, on the disposition of
miscellaneous drilling equipment in the respective
quarter.
|
|
(3) Severance
expense of $1.1 million was recorded in the first quarter of 2020
in connection with our cost reduction measures instituted in
response to the COVID-19 pandemic and deteriorating market
conditions.
|
|
(4) Purchase
agreement costs were recorded in the fourth quarter of 2020 in
connection with our committed equity line of credit.
|
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.