HOUSTON, May 2, 2019 /PRNewswire/ -- Independence
Contract Drilling, Inc. (the "Company") (NYSE: ICD) today reported
financial results for the three months ended March 31, 2019.
First Quarter 2019 Highlights
- Net loss of $2.4 million, or
$0.03 per share.
- Adjusted net income, as defined below, of $2.9 million, or $0.04 per share.
- Adjusted EBITDA, as defined below, of $15.8 million.
- Net debt, excluding finance leases, of $122.4 million.
- Fleet utilization of 94.8%.
- Fully-burdened margin of $7,453
per day.
In the first quarter of 2019, the Company reported revenues of
$60.4 million, a net loss of
$2.4 million, or $0.03 per share, adjusted net income (defined
below) of $2.9 million, or
$0.04 per share, and adjusted EBITDA
(defined below) of $15.8
million. This compares to revenues of $25.6 million, a net loss of $4.1 million, or $0.11 per share, an adjusted net loss of
$4.3 million, or $0.11 per share, and adjusted EBITDA of
$3.9 million in the first quarter of
2018 and revenues of $62.8 million, a
net loss of $8.6 million, or
$0.11 per share, an adjusted net
income of $1.0 million, or
$0.01 per share, and adjusted EBITDA
of $16.0 million in the fourth
quarter of 2018.
Chief Executive Officer Anthony
Gallegos commented, "I am quite pleased with our financial
results and the resiliency of our operations in a very choppy first
quarter market. We reported adjusted net income for the
second consecutive quarter following the strategic combination with
Sidewinder. Our results were driven by continued strong
utilization of our pad-optimal rig fleet and continued realization
of SG&A and operational efficiencies resulting from the
successful integration, which continues to progress smoothly
towards completion at the end of the second quarter as
planned."
"U.S. land-rig market dynamics continue to play out as we
expected. Customer budget reductions in response to year-end
oil price declines resulted in reduced drilling activity, and their
increased focus on free cash flow and returns has tempered their
response to the recent commodity price recovery.
Nevertheless, utilization of our pad-optimal ShaleDriller® fleet
remains robust, experiencing only transitory idle time as we
redistribute affected rigs across our customer base. Towards
the end of the first quarter and beginning of the second quarter,
we have dealt with a handful of rigs being released, but
re-contracting efforts continue to progress, inquiries are
increasing as a result of the recent oil price recovery, and we
expect these transitory issues to resolve as we exit the second
quarter of 2019."
Quarterly Operational Results
In the first quarter of 2019, the Company's fleet operated at
94.8% utilization and recorded 2,728.1 revenue days, compared to
100.0% utilization and 1,259.4 revenue days in the first quarter of
2018, and 95.7% utilization and 2,817.5 revenue days in the fourth
quarter of 2018.
Operating revenues in the first quarter of 2019 totaled
$60.4 million, compared to
$25.6 million in the first quarter of
2018 and $62.8 million in the fourth
quarter of 2018. First quarter 2019 and fourth quarter 2018
revenues include $1.0 million and
$2.0 million, respectively, of
non-cash intangible revenue associated with the Sidewinder merger
that closed on October 1, 2018.
Excluding this non-cash revenue, revenue per day in the first
quarter of 2019 was $20,755, compared
to $19,055 in the first quarter of
2018 and $20,433 in the fourth
quarter of 2018. Sequential increases were driven by higher
dayrates from recontracting of older legacy contracts.
Operating costs in the first quarter of 2019 totaled
$39.3 million, compared to
$18.9 million in the first quarter of
2018 and $39.9 million in the fourth
quarter of 2018. Fully-burdened operating costs were
$13,302 per day in the first quarter
of 2019, compared to $13,414 in the
first quarter of 2018 and $12,932 in
the fourth quarter of 2018. Sequential increases in per day
operating costs were primarily the result of seasonal payroll
matters.
Fully-burdened rig operating margins, excluding reactivation and
rig construction costs, in the first quarter of 2019 were
$7,453 per day, compared to
$5,641 per day in the first quarter
of 2018 and $7,501 per day in the
fourth quarter of 2018.
Selling, general and administrative expenses in the first
quarter of 2019 were $4.5 million
(including $0.4 million of non-cash
stock-based compensation), compared to $3.5
million (including $0.6
million of non-cash stock-based compensation) in the first
quarter of 2018 and $5.0 million
(including $0.2 million of non-cash
stock-based compensation) in the fourth quarter of 2018.
Sequential decreases in SG&A were primarily associated with
continued synergy realization as integration efforts continued
during the quarter.
A tax benefit of $2.5 million
($0.03 per share) was recorded in the
current quarter as a result of applying the Company's estimated
annual tax rate to the year-to-date results. The expected annual
tax expense for 2019 consists of Louisiana and Texas tax.
Drilling Operations Update
The Company is currently marketing 32 drilling rigs and had a
backlog from contracts with original terms of six months or greater
of $102.4 million at March 31, 2019. Approximately 85% of this
backlog is expected to be realized during the remainder of
2019.
Capital Expenditures and Liquidity Update
The Company's capital expenditure budget for 2019, net of asset
sales and recoveries remains $29
million. During the first quarter of 2019, cash
outlays for capital expenditures, net of asset sales and
recoveries, was $9.3 million.
As of March 31, 2019, the Company
had cash on hand of $12.5 million,
$5 million drawn on its $40 million revolving credit facility and a
$130 million term loan
outstanding. The term loan includes a fully-committed
$15 million accordion that remains
undrawn and fully available to the Company.
Conference Call Details
A conference call for investors will be held today, May 2, 2019, at 11:00 a.m.
Central Time (12:00 p.m. Eastern
Time) to discuss the Company's first quarter 2019
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
10131167. The replay will be available until May 9, 2019.
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,
2019
|
|
December 31,
2018
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
12,549
|
|
$
12,247
|
Accounts receivable,
net
|
42,137
|
|
41,987
|
Inventories
|
2,738
|
|
2,693
|
Assets held for
sale
|
19,369
|
|
19,711
|
Prepaid expenses and
other current assets
|
5,667
|
|
8,930
|
|
|
Total current
assets
|
82,460
|
|
85,568
|
Property, plant and
equipment, net
|
488,472
|
|
496,197
|
Goodwill
|
1,627
|
|
1,627
|
Deferred tax
assets
|
1,766
|
|
-
|
Other long-term
assets, net
|
2,582
|
|
1,470
|
|
|
Total
assets
|
$
576,907
|
|
$
584,862
|
Liabilities and
Stockholders' Equity
|
|
|
|
Liabilities
|
|
|
|
|
Current portion of
long-term debt (1)
|
$
905
|
|
$
587
|
|
Accounts
payable
|
16,174
|
|
16,312
|
|
Accrued
liabilities
|
21,095
|
|
29,219
|
|
|
Total current
liabilities
|
38,174
|
|
46,118
|
|
Long-term debt
(2)
|
132,610
|
|
130,012
|
|
Contingent
consideration
|
15,558
|
|
15,748
|
|
Deferred income
taxes, net
|
-
|
|
774
|
|
Other long-term
liabilities
|
1,195
|
|
677
|
|
|
Total
liabilities
|
187,537
|
|
193,329
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Common stock, $0.01
par value, 200,000,000 shares authorized; 77,598,806 shares issued
and 77,078,252 shares outstanding
|
771
|
|
771
|
|
Additional paid-in
capital
|
503,656
|
|
503,446
|
|
Accumulated
deficit
|
(112,011)
|
|
(109,638)
|
|
Treasury stock, at
cost, 520,554 shares
|
(3,046)
|
|
(3,046)
|
|
|
Total stockholders'
equity
|
389,370
|
|
391,533
|
|
|
Total liabilities and
stockholders' equity
|
$
576,907
|
|
$
584,862
|
|
|
(1)
|
Current portion of
long-term debt relates to the current portion of vehicle finance
and capital lease obligations.
|
|
|
(2)
|
As of March 31, 2019,
long-term debt includes $0.7 million of long-term vehicle finance
lease obligations. As of December 31, 2018, long-term debt
included $0.6 million of long-term vehicle capital lease
obligations.
|
INDEPENDENCE
CONTRACT DRILLING, INC.
Unaudited
(in thousands,
except per share amounts)
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
2019
|
|
2018
|
|
2018
|
|
|
|
|
|
|
Revenues
|
$
60,358
|
|
$
25,627
|
|
$
62,789
|
Costs and
expenses
|
|
|
|
|
|
|
Operating
costs
|
39,333
|
|
18,926
|
|
39,908
|
|
Selling, general and
administrative
|
4,545
|
|
3,479
|
|
5,030
|
|
Merger-related
expenses
|
1,081
|
|
-
|
|
11,270
|
|
Depreciation and
amortization
|
11,313
|
|
6,591
|
|
10,890
|
|
Asset impairment
(insurance recoveries), net
|
2,018
|
|
(35)
|
|
(371)
|
|
Loss (gain) on
disposition of assets, net
|
3,220
|
|
(82)
|
|
(65)
|
|
|
Total cost and
expenses
|
61,510
|
|
28,879
|
|
66,662
|
|
|
Operating
loss
|
(1,152)
|
|
(3,252)
|
|
(3,873)
|
Interest
expense
|
(3,761)
|
|
(943)
|
|
(4,513)
|
|
|
Loss before income
taxes
|
(4,913)
|
|
(4,195)
|
|
(8,386)
|
Income tax (benefit)
expense
|
(2,540)
|
|
(49)
|
|
211
|
|
|
Net loss
|
$
(2,373)
|
|
$
(4,146)
|
|
$
(8,597)
|
|
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
|
|
Basic and
Diluted
|
$
(0.03)
|
|
$
(0.11)
|
|
$
(0.11)
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
Basic and
Diluted
|
75,692
|
|
38,124
|
|
75,692
|
INDEPENDENCE
CONTRACT DRILLING, INC.
Unaudited
(in
thousands)
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
Three Months Ended
March 31,
|
|
2019
|
|
2018
|
|
|
Cash flows from
operating activities
|
|
|
|
Net loss
|
$
(2,373)
|
|
$
(4,146)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities
|
|
|
|
Depreciation and amortization
|
11,313
|
|
6,591
|
Asset impairment (insurance recoveries), net
|
2,018
|
|
(35)
|
Stock-based compensation
|
387
|
|
644
|
Loss (gain) on disposition of assets, net
|
3,220
|
|
(82)
|
Deferred income taxes
|
(2,540)
|
|
(49)
|
Amortization of deferred financing costs
|
203
|
|
90
|
Bad debt (recovery) expense
|
(45)
|
|
22
|
Changes in operating assets and liabilities
|
|
|
|
Accounts
receivable
|
(105)
|
|
1,790
|
Inventories
|
(45)
|
|
(56)
|
Prepaid
expenses and other assets
|
843
|
|
(386)
|
Accounts
payable and accrued liabilities
|
(5,271)
|
|
(2,371)
|
Net cash provided by operating activities
|
7,605
|
|
2,012
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Purchases of
property, plant and equipment
|
(10,832)
|
|
(6,259)
|
Proceeds from
insurance claims
|
1,000
|
|
-
|
Proceeds from the
sale of assets
|
536
|
|
146
|
Net cash used in investing activities
|
(9,296)
|
|
(6,113)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Borrowings under ABL
Credit Facility
|
2,403
|
|
-
|
Borrowings under CIT
Credit Facility
|
-
|
|
13,779
|
Repayments under CIT
Credit Facility
|
-
|
|
(9,100)
|
Common stock issuance
costs
|
(177)
|
|
-
|
Purchase of treasury
stock
|
-
|
|
(350)
|
RSUs withheld for
taxes
|
-
|
|
(95)
|
Financing costs paid
under Term Loan Facility
|
(5)
|
|
-
|
Financing costs paid
under ABL Credit Facility
|
(12)
|
|
-
|
Payments for finance
and capital lease obligations
|
(216)
|
|
(163)
|
Net cash provided by financing activities
|
1,993
|
|
4,071
|
Net increase (decrease) in cash and cash equivalents
|
302
|
|
(30)
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
Beginning of
period
|
12,247
|
|
2,533
|
End of
period
|
$
12,549
|
|
$
2,503
|
|
|
|
|
Supplemental
disclosure of cash flow information
|
|
|
|
Cash paid during the
period for interest
|
$
3,514
|
|
$
848
|
Supplemental
disclosure of non-cash investing and financing
activity
|
|
|
|
Change in property,
plant and equipment purchases in accounts payable
|
$
(1,753)
|
|
$
(739)
|
Additions to
property, plant and equipment through capital leases
|
$
520
|
|
$
70
|
Transfer of assets
from held and used to held for sale
|
$
(2,285)
|
|
$
-
|
The following table provides various financial and operational
data for the Company's operations the three months ending
March 31, 2019 and 2018 and
December 31, 2018. 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,
|
|
March
31,
|
|
December
31,
|
|
|
2019
|
|
2018
|
|
2018
|
|
|
|
|
|
|
|
Number of marketed
rigs end of period(1)
|
|
32
|
|
14
|
|
32
|
Rig operating
days(2)
|
|
2,728.1
|
|
1,259.4
|
|
2,817.5
|
Average number of
operating rigs(3)
|
|
30.3
|
|
14.0
|
|
30.6
|
Rig utilization
(4)
|
|
94.8%
|
|
100.0%
|
|
95.7%
|
Average revenue per
operating day (5)
|
|
$
20,755
|
|
$
19,055
|
|
$
20,433
|
Average cost per
operating day(6)
|
|
$
13,302
|
|
$
13,414
|
|
$
12,932
|
Average rig margin
per operating day
|
|
$
7,453
|
|
$
5,641
|
|
$
7,501
|
(1)
|
Number of marketed
rigs as of March 31, 2019 and December 31, 2018
increased by 18 rigs as compared to the number of marketed rigs as
of March 31, 2018. Our 15th ShaleDriller rig was
completed and commenced operations during the third quarter of 2018
and we acquired 17 marketed rigs and two idle non-operating rigs
requiring upgrade as a result of the Sidewinder merger in the
fourth 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.
|
|
|
(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 $2.7 million, $1.6 million and $3.2
million during the three months ended March 31, 2019 and 2018,
and December 31, 2018, respectively and revenues associated with
the amortization of intangible revenue acquired in the Sidewinder
merger of $1.0 million and $2.0 million during the three
months ended March 31, 2019 and December 31, 2018,
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 $2.7 million,
$1.6 million and $3.2 million during the three months ended
March 31, 2019 and 2018, and December 31, 2018, respectively,
(ii) new crew training costs of zero, $25 thousand and zero during
the three months ended March 31, 2019 and 2018, and December
31, 2018, respectively, and (iii) construction overhead costs
expensed due to reduced rig construction activity of $0.3 million,
$0.4 million and $0.3 million during the three months ended
March 31, 2019 and 2018, and December 31, 2018,
respectively.
|
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 Income (Loss):
|
|
|
(Unaudited)
|
|
Three Months
Ended
|
|
March
31,
|
|
March
31,
|
|
December
31,
|
|
2019
|
|
2018
|
|
2018
|
|
Amount
|
|
Per
Share
|
|
Amount
|
|
Per
Share
|
|
Amount
|
|
Per
Share
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
(2,373)
|
|
$
(0.03)
|
|
$
(4,146)
|
|
$
(0.11)
|
|
$
(8,597)
|
|
$
(0.11)
|
Add back:
|
|
|
|
|
|
|
|
|
|
|
|
Asset impairment
(insurance recoveries), net (1)
|
2,018
|
|
0.03
|
|
(35)
|
|
-
|
|
(371)
|
|
(0.01)
|
Loss (gain) on
disposition of assets, net(2)
|
3,220
|
|
0.04
|
|
(82)
|
|
-
|
|
(65)
|
|
-
|
Intangible
revenue(3)
|
(1,033)
|
|
(0.01)
|
|
-
|
|
-
|
|
(2,044)
|
|
(0.03)
|
Merger-related
expenses(4)
|
1,081
|
|
0.01
|
|
-
|
|
-
|
|
11,270
|
|
0.15
|
Write-off of deferred
financing costs(5)
|
-
|
|
-
|
|
-
|
|
-
|
|
856
|
|
0.01
|
Adjusted net
income (loss)
|
$
2,913
|
|
$
0.04
|
|
$
(4,263)
|
|
$
(0.11)
|
|
$
1,049
|
|
$
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net Loss to EBITDA and Adjusted EBITDA:
|
|
|
(Unaudited)
|
|
Three Months
Ended
|
|
March
31,
|
|
March
31,
|
|
December
31,
|
|
2019
|
|
2018
|
|
2018
|
(in
thousands)
|
|
|
|
|
|
Net loss
|
$
(2,373)
|
|
$
(4,146)
|
|
$
(8,597)
|
Add back:
|
|
|
|
|
|
Income tax (benefit)
expense
|
(2,540)
|
|
(49)
|
|
211
|
Interest
expense
|
3,761
|
|
943
|
|
4,513
|
Depreciation and
amortization
|
11,313
|
|
6,591
|
|
10,890
|
Asset impairment
(insurance recoveries), net(1)
|
2,018
|
|
(35)
|
|
(371)
|
EBITDA
|
12,179
|
|
3,304
|
|
6,646
|
Loss (gain) on
disposition of assets, net(2)
|
3,220
|
|
(82)
|
|
(65)
|
Stock-based
compensation
|
387
|
|
644
|
|
240
|
Intangible
revenue(3)
|
(1,033)
|
|
-
|
|
(2,044)
|
Merger-related
expenses(4)
|
1,081
|
|
-
|
|
11,270
|
Adjusted
EBITDA
|
$
15,834
|
|
$
3,866
|
|
$
16,047
|
(1)
|
In the first quarter
of 2019, we recorded an impairment to assets held for sale of $2.0
million to reflect the proceeds received when these assets were
sold at auction in April 2019. In the fourth quarter of 2018,
we recorded insurance recoveries, net of impairments of $0.6
million on the Galayda facility water damage incurred during
Hurricane Harvey after receiving a proof of loss letter from our
insurance carrier, offset by an increased impairment of $0.2
million related to increased estimated costs to sell the Galayda
facility.
|
|
|
(2)
|
In the first quarter
of 2019 we recorded a loss on the disposition of assets of
$3.2 million primarily related to the sale of certain surplus
assets, acquired in the Sidewinder merger, at auctions during the
quarter.
|
|
|
(3)
|
For the three months
ended March 31, 2019 and December 31, 2018, we amortized intangible
revenue related to an unfavorable contract liability acquired in
the Sidewinder merger.
|
|
|
(4)
|
For the three months
ended March 31, 2019 and December 31, 2018 we incurred costs
directly associated with the Sidewinder merger. These costs
were primarily comprised of severance, professional fees and other
integration related expenses.
|
|
|
(5)
|
For the three months
ended December 31, 2018, we wrote-off $0.9 million of unamortized
deferred financing costs associated with the CIT Credit Facility,
which was terminated upon the closing of the Sidewinder
merger.
|
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.