HOUSTON, September 19, 2019 – Shares of Independence Contract Drilling Inc. (NYSE: ICD) declined -5.23% to $1.63. The stock traded total volume of 128.423K shares lower than the average volume of 255.01K shares.
In the first quarter of 2019, Independence Contract Drilling, Inc. (ICD) reported revenues of $60.40M, a net loss of $2.40M, or $0.03 per share, adjusted net income (defined below) of $2.90M, or $0.04 per share, and adjusted EBITDA of $15.80M. This compares to revenues of $25.60M, a net loss of $4.10M, or $0.11 per share, an adjusted net loss of $4.30M, or $0.11 per share, and adjusted EBITDA of $3.90M in the first quarter of 2018 and revenues of $62.80M, a net loss of $8.60M, or $0.11 per share, an adjusted net income of $1.00M, or $0.01 per share, and adjusted EBITDA of $16.00M in the fourth quarter of 2018.
Quarterly Operational Results
Operating revenues in the first quarter of 2019 totaled $60.40M, contrast to $25.60M in the first quarter of 2018 and $62.80M in the fourth quarter of 2018. First quarter 2019 and fourth quarter 2018 revenues include $1.00M and $2.00M, 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, contrast 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 $39.30M, contrast to $18.90M in the first quarter of 2018 and $39.90M in the fourth quarter of 2018. Fully-burdened operating costs were $13,302 per day in the first quarter of 2019, contrast 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 mainly the result of seasonal payroll matters.
Selling, general and administrative expenses in the first quarter of 2019 were $4.50M (counting $0.40M of non-cash stock-based compensation), contrast to $3.50M (counting $0.60M of non-cash stock-based compensation) in the first quarter of 2018 and $5.00M (counting $0.20M of non-cash stock-based compensation) in the fourth quarter of 2018. Sequential decreases in SG&A were mainly associated with continued synergy realization as integration efforts continued during the quarter.
A tax benefit of $2.50M ($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.
Capital Expenditures and Liquidity Update
The Company’s capital expenditure budget for 2019, net of asset sales and recoveries remains $290M. During the first quarter of 2019, cash outlays for capital expenditures, net of asset sales and recoveries, was $9.30M.
As of March 31, 2019, the Company had cash on hand of $12.50M, $5.0M drawn on its $40.0M revolving credit facility and a $130.0M term loan outstanding. The term loan includes a fully-committed $15.0M accordion that remains undrawn and fully available to the Company.
ICD has the market capitalization of $132.35M and its EPS growth ratio for the past five years was -36.80%. The return on assets ratio of the Company was -5.40% while its return on investment ratio stands at -2.40%. Price to sales ratio was 0.65 while 82.80% of the stock was owned by institutional investors.
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