Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 23, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Independence Contract Drilling, Inc. | |
Entity Central Index Key | 1,537,028 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 38,252,765 |
Balance Sheets (Unaudited)
Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 2,503 | $ 2,533 |
Accounts receivable, net | 16,244 | 18,056 |
Inventories | 2,795 | 2,710 |
Assets held for sale | 1,920 | 1,920 |
Prepaid expenses and other current assets | 3,381 | 2,957 |
Total current assets | 26,843 | 28,176 |
Property, plant and equipment, net | 274,046 | 275,105 |
Other long-term assets, net | 1,236 | 1,364 |
Total assets | 302,125 | 304,645 |
Liabilities | ||
Current portion of long-term debt | 511 | 533 |
Accounts payable | 10,500 | 11,627 |
Accrued liabilities | 5,018 | 6,969 |
Total current liabilities | 16,029 | 19,129 |
Long-term debt | 53,886 | 49,278 |
Deferred income taxes, net | 634 | 683 |
Other long-term liabilities | 41 | 73 |
Total liabilities | 70,590 | 69,163 |
Commitments and contingencies (Note 11) | ||
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 | 327,162 | 326,616 |
Accumulated deficit | (93,791) | (89,645) |
Treasury stock, at cost, 344,682 and 261,694 shares, respectively | (2,219) | (1,869) |
Total stockholders’ equity | 231,535 | 235,482 |
Total liabilities and stockholders’ equity | $ 302,125 | $ 304,645 |
Balance Sheets (Unaudited) (Par
Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Shares authorized (in shares) | 100,000,000 | 100,000,000 |
Shares issued (in shares) | 38,597,447 | 38,246,919 |
Shares outstanding (in shares) | 38,252,765 | 37,985,225 |
Treasury stock (in shares) | 344,682 | 261,694 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Revenues | $ 25,627 | $ 20,236 |
Costs and expenses | ||
Operating costs | 18,926 | 14,898 |
Selling, general and administrative | 3,479 | 3,718 |
Depreciation and amortization | 6,591 | 6,256 |
Asset impairment, net | (35) | 129 |
(Gain) loss on disposition of assets, net | (82) | 828 |
Total costs and expenses | 28,879 | 25,829 |
Operating loss | (3,252) | (5,593) |
Interest expense | (943) | (630) |
Loss before income taxes | (4,195) | (6,223) |
Income tax (benefit) expense | (49) | 46 |
Net loss | $ (4,146) | $ (6,269) |
Loss per share: | ||
Basic and diluted (usd per share) | $ (0.11) | $ (0.17) |
Weighted average number of common shares outstanding: | ||
Basic and diluted (shares) | 38,124 | 37,546 |
Statements of Stockholders_ Equ
Statements of Stockholders’ Equity (Unaudited) - 3 months ended Mar. 31, 2018 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock |
Beginning balance (shares) at Dec. 31, 2017 | 37,985,225 | ||||
Beginning balance at Dec. 31, 2017 | $ 235,482 | $ 380 | $ 326,616 | $ (89,645) | $ (1,869) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
RSUs vested, net of shares withheld for taxes (shares) | 350,528 | ||||
RSUs vested, net of shares withheld for taxes | (95) | $ 3 | (98) | ||
Purchase of treasury stock (shares) | (82,988) | ||||
Purchase of treasury stock | (350) | (350) | |||
Stock-based compensation | 644 | 644 | |||
Net loss | (4,146) | (4,146) | |||
Ending balance (shares) at Mar. 31, 2018 | 38,252,765 | ||||
Ending balance at Mar. 31, 2018 | $ 231,535 | $ 383 | $ 327,162 | $ (93,791) | $ (2,219) |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities | ||
Net loss | $ (4,146) | $ (6,269) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 6,591 | 6,256 |
Asset impairment, net | (35) | 129 |
Stock-based compensation | 644 | 1,012 |
(Gain) loss on disposition of assets, net | (82) | 828 |
Deferred income taxes | (49) | 46 |
Amortization of deferred financing costs | 90 | 125 |
Bad debt expense | 22 | 0 |
Changes in operating assets and liabilities | ||
Accounts receivable | 1,790 | (807) |
Inventories | (56) | (75) |
Prepaid expenses and other assets | (386) | (885) |
Accounts payable and accrued liabilities | (2,371) | (1,780) |
Net cash provided by (used in) operating activities | 2,012 | (1,420) |
Cash flows from investing activities | ||
Purchases of property, plant and equipment | (6,259) | (8,645) |
Proceeds from the sale of assets | 146 | 13 |
Net cash used in investing activities | (6,113) | (8,632) |
Cash flows from financing activities | ||
Borrowings under Credit Facility | 13,779 | 13,457 |
Repayments under Credit Facility | (9,100) | (2,600) |
Purchase of treasury stock | (350) | (24) |
RSUs withheld for taxes | (95) | (455) |
Payments for capital lease obligations | (163) | (109) |
Net cash provided by financing activities | 4,071 | 10,269 |
Net (decrease) increase in cash and cash equivalents | (30) | 217 |
Cash and cash equivalents | ||
Beginning of period | 2,533 | 7,071 |
End of period | 2,503 | 7,288 |
Supplemental disclosure of cash flow information | ||
Cash paid during the period for interest | 848 | 510 |
Supplemental disclosure of non-cash investing and financing activities | ||
Change in property, plant and equipment purchases in accounts payable | (739) | (263) |
Additions to property, plant and equipment through capital leases | 70 | 327 |
Transfer of assets from held for sale to held and used | $ 2,717 | $ 0 |
Nature of Operations and Recent
Nature of Operations and Recent Events | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Recent Events | Nature of Operations and Recent Events Except as expressly stated or the context otherwise requires, the terms "we," "us," "our," "ICD," and the "Company" refer to Independence Contract Drilling, Inc. We provide land-based contract drilling services for oil and natural gas producers targeting unconventional resource plays in the United States. We construct, own and operate a rig fleet comprised entirely of custom designed ShaleDriller® rigs. Our standardized rig fleet consists of 14 premium 200 Series ShaleDriller rigs, all of which are equipped with our integrated omni-directional walking system that is specifically designed to optimize pad drilling for our customers. Every rig in our fleet is a 1500-hp, AC programmable rig designed to be fast-moving between drilling sites and is equipped with 7500 psi mud systems, top drives, automated tubular handling systems and blowout preventer handling systems. All of our rigs are equipped with bi-fuel capabilities that enable the rig to operate on either diesel or a natural gas-diesel blend. Our first rig commenced drilling in May 2012. We currently focus our operations on unconventional resource plays located in geographic regions that we can efficiently support from our Houston, Texas facilities in order to maximize economies of scale. Currently, our rigs are operating in the Permian Basin, Eagle Ford Shale and the Haynesville Shale, however, our rigs have previously operated in the Mid-Continent and Eaglebine regions as well. Our business depends on the level of exploration and production activity by oil and natural gas companies operating in the United States, and in particular, the regions where we actively market our contract drilling services. The oil and natural gas exploration and production industry is a historically cyclical industry characterized by significant changes in the levels of exploration and development activities. Oil and natural gas prices and market expectations of potential changes in those prices significantly affect the levels of those activities. Worldwide political, regulatory, economic, and military events, as well as natural disasters have contributed to oil and natural gas price volatility historically, and are likely to continue to do so in the future. Any prolonged reduction in the overall level of exploration and development activities in the United States and the regions where we market our contract drilling services, whether resulting from changes in oil and natural gas prices or otherwise, could materially and adversely affect our business. Oil and Natural Gas Prices and Drilling Activity Both oil and natural gas prices began to decline in the second half of 2014, declined further during 2015 and remained low in 2016. The closing price of oil was as high as $106.06 per barrel during the third quarter of 2014, was $37.13 per barrel on December 31, 2015, and reached a low of $26.19 on February 11, 2016 (West Texas Intermediate - Cushing, Oklahoma (“WTI”) spot price as reported by the United States Energy Information Administration (the “EIA”)). Similarly, natural gas prices (as measured at Henry Hub) declined from an average of $4.37 per MMBtu in 2014, to $2.62 per MMBtu in 2015 and to $2.52 per MMBtu in 2016. As a result, our industry experienced an exceptional downturn and market conditions have only begun to stabilize and slowly recover. In November 2016, Organization of Petroleum Exporting Countries (“OPEC”) members formally agreed to reduce their production quotas, starting January 1, 2017. These production cuts significantly reduced the overhang of global oil supplies. OPEC members met in December 2017 and agreed to extend the freeze into 2018, and are expected to meet again in June 2018 to review market conditions and the impact of their freeze on global supplies. In addition to OPEC members, certain non-OPEC producers such as Russia have agreed to production cuts, which has also supported crude oil and related energy commodity prices. As a result of these supply cuts and positive demand trends, crude oil prices have recovered with WTI oil prices reaching a three-year high of $67.35 on April 13, 2018. Similarly, natural gas prices at Henry Hub averaged $2.99 per MMBtu in 2017, and have averaged $3.04 per MMBtu in 2018 as of April 16, 2018. However, there are no indications at this time that oil prices and rig counts will recover, in the near term, to their previous highs experienced in 2014. As market conditions have improved from trough levels in 2016 and begun to stabilize higher, demand for our ShaleDriller rigs has improved. At March 31, 2018 , all of our rigs were under contract and operating. In addition to improving utilization, contract tenors improved with customers signing term contracts of six to twelve months or longer, and at higher dayrates compared to trough levels, with the potential to move higher if market conditions continue to improve. However, if oil prices were to fall for any sustained period of time, market conditions and demand for our products and services could deteriorate. Change in Plan of Sale of Assets During the second quarter of 2017, our management committed to a plan to sell our corporate headquarters and rig assembly yard complex located at 11601 North Galayda Street, Houston, Texas (the "Galayda Facility"). As a result, we reclassified an aggregate $4.0 million of land, buildings and equipment from property, plant and equipment to assets held for sale on our balance sheet and recognized a $0.5 million asset impairment charge representing the difference between the carrying value and the fair value, less the costs to sell the related property. In the third quarter of 2017, we recorded an additional impairment on this group of assets totaling $0.6 million , as a result of water-related damage sustained during the heavy rainfall that occurred during Hurricane Harvey in August 2017. During the first quarter of 2018, management changed its plan to sell all of the Galayda Facility assets and decided to improve and utilize a portion of the land and buildings on the property. Based on this decision, which was previously considered unlikely, certain land and buildings at the Galayda Facility were reclassified to assets held and used as of March 31, 2018. Accordingly, we reduced assets held for sale by $2.7 million and increased property, plant and equipment by $2.9 million on our March 31, 2018 balance sheet and recognized a recovery of asset impairment expense of approximately $208 thousand in our statement of operations for the three months ended March 31, 2018. Additionally, our December 31, 2017 balance sheet was adjusted to reflect a reduction in assets held for sale of $2.7 million and an increase in property, plant and equipment of $2.7 million . In conjunction with the decision to hold and use a portion of the Galayda Facility in the first quarter of 2018, management concluded that four dilapidated buildings on the property would likely be torn down. As such, we impaired the carrying value of these buildings to zero , reducing property, plant and equipment $173 thousand and recognizing asset impairment expense of $173 thousand . |
Interim Financial Information
Interim Financial Information | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Interim Financial Information | Interim Financial Information These unaudited financial statements include the accounts of ICD, and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). These financial statements should be read along with our audited financial statements for the year ended December 31, 2017 , included in our Annual Report on Form 10-K for the year ended December 31, 2017 . In management’s opinion, these financial statements contain all adjustments necessary to fairly present our financial position, results of operations, cash flows and changes in stockholders' equity for all periods presented. As we had no items of other comprehensive income in any period presented, no other components of comprehensive income is presented. Interim results for the three months ended March 31, 2018 may not be indicative of results that will be realized for the full year ending December 31, 2018 . Revenue and Cost Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09). We adopted ASU 2014-09 and its related amendments (collectively known as ASC 606) effective on January 1, 2018 using the modified retrospective method. While ASC 606 requires additional disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, its adoption did not have a material impact on the measurement or recognition of our revenues. We may recognize demobilization fee revenue earlier in the contract term than we have historically, but demobilization fee revenues are earned very infrequently under our contracts. See Note 3 "Revenue from Contracts with Customers" for the required disclosures related to the impact of adopting this standard and a discussion of our updated policies related to revenue recognition and accounting for costs to obtain and fulfill a customer contract. Segment and Geographical Information Our operations consist of one reportable segment because all of our drilling operations are located in the United States and have similar economic characteristics. Corporate management administers all properties as a whole rather than as discrete operating segments. Operational data is tracked by rig; however, financial performance is measured as a single enterprise and not on a rig-by-rig basis. Further, the allocation of capital resources is employed on a project-by-project basis across our entire asset base to maximize profitability without regard to individual geographic areas. Other Matters We have not elected to avail ourselves of the extended transition period available to emerging growth companies ("EGCs") as provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, for complying with new or revised accounting standards, therefore, we will be subject to new or revised accounting standards at the same time as other public companies that are not EGCs. Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases, to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. Under the new guidance, lessees will be required to recognize (with the exception of short-term leases) at the commencement date, a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. This guidance is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all public business entities. We are currently evaluating the impact this guidance will have on our financial statements and have engaged a third party consultant to assist us in this evaluation process. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, as additional guidance on the measurement of credit losses on financial instruments. The new guidance requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. In addition, the guidance amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The new guidance is effective for public companies for interim and annual periods beginning after December 15, 2019, with early adoption permitted for interim and annual periods beginning after December 15, 2018. We are in the initial stages of evaluating the impact this guidance will have on our accounts receivable. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Revenue from Contracts with Customers Effective January 1, 2018, we adopted Accounting Standards Codification (“ASC”) Revenue from Contracts with Customers (“ASC 606”), using the modified retrospective method. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaborative arrangements and financial instruments. Under ASC 606, an entity recognizes revenue when it transfers control of the promised goods or services to its customer, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. If control transfers to the customer over time, an entity selects a method to measure progress that is consistent with the objective of depicting its performance. In determining the appropriate amount of revenue to be recognized as we fulfill our obligations under the agreement, the following steps must be performed at contract inception: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) we satisfy each performance obligation. Drilling Services Our revenues are principally derived from contract drilling services and the activities in our drilling contracts, for which revenues may be earned, include: (i) providing a drilling rig and the crews and supplies necessary to operate the rig; (ii) mobilizing and demobilizing the rig to and from the initial and final drill site, respectively; (iii) certain reimbursable activities; (iv) performing rig modification activities required for the contract; and (v) early termination revenues. We account for these integrated services provided under our drilling contracts as a single performance obligation, satisfied over time, that is comprised of a series of distinct time increments. Consideration for activities that are not distinct within the context of our contracts, and that do not correspond to a distinct time increment within the contract term, are allocated across the single performance obligation and recognized ratably in proportion to the actual services performed over the initial term of the contract. If taxes are required to be collected from customers relating to our drilling services, they are excluded from revenue. Dayrate Drilling Revenue. Our drilling contracts provide that revenue is earned based on a specified rate per day for the activity performed. The majority of revenue earned under daywork contracts is variable, and depends on a rate scale associated with drilling conditions and level of service provided for each fractional-hour time increment over the contract term. Such rates generally include the full operating rate, moving rate, standby rate, and force majeure rate and determination of the rate per time increment is made based on the actual circumstances as they occur. Other variable consideration under these contracts could include reduced revenue related to downtime, delays or moving caps. Mobilization/Demobilization Revenue . We may receive fees (on either a fixed lump-sum or variable dayrate basis) for the mobilization and demobilization of our rigs. These activities are not considered to be distinct within the context of the contract and therefore, the associated revenue is allocated to the overall performance obligation and recognized ratably over the initial term of the related drilling contract. We record a contract liability for mobilization fees received, which is amortized ratably to revenue as services are rendered over the initial term of the related drilling contract. Demobilization fee revenue expected to be received upon contract completion is estimated as part of the overall transaction price at contract inception and recognized in earnings ratably over the initial term of the contract with an offset to an accretive contract asset. In our contracts, there is generally significant uncertainty as to the amount of demobilization fee revenue that may ultimately be collected due to contractual provisions which stipulate that certain conditions be present at contract completion for such revenue to be received. For example, the amount collectible may be reduced to zero if the rig has been contracted with a new customer upon contract completion. Accordingly, the estimate for such revenue may be constrained depending on the facts and circumstances pertaining to the specific contract. We assess the likelihood of receiving such revenue based on past experience and knowledge of the market conditions. Reimbursable Revenues . We receive reimbursements from our customers for the purchase of supplies, equipment and other services provided at their request in accordance with a drilling contract or other agreement. Such reimbursable revenue is variable and subject to uncertainty, as the amounts received and timing thereof is highly dependent on factors outside of our influence. Accordingly, reimbursable revenue is fully constrained and not included in the total transaction price until the uncertainty is resolved, which typically occurs when the related costs are incurred on behalf of a customer. We are generally considered a principal in such transactions and record the associated revenue at the gross amount billed to the customer. Capital Modification Revenue . From time to time, we may receive fees (on either a fixed lump-sum or variable dayrate basis) from our customers for capital improvements to our rigs to meet their requirements. Such revenue is allocated to the overall performance obligation and recognized ratably over the initial term of the related drilling contract, as these activities are not considered to be distinct within the context of our contracts. We record a contract liability for such fees received up front, and recognize them ratably as contract drilling revenue over the initial term of the related drilling contract. Early Termination Revenue . Our contracts provide for early termination fees in the event our customers choose to cancel the contract prior to the specified contract term. We record a contract liability for such fees received up front, and recognize them ratably as contract drilling revenue over the initial term of the related drilling contract or until such time that all performance obligations are satisfied. Disaggregation of Revenue The following table summarizes revenues from our contracts disaggregated by revenue generating activity contained therein for the three months ended March 31, 2018 and March 31, 2017 : Three Months Ended (in thousands) March 31, 2018 March 31, 2017 Dayrate drilling $ 23,777 $ 19,146 Mobilization 459 541 Reimbursables 1,231 541 Capital modification 160 — Other — 8 $ 25,627 $ 20,236 Contract Balances Accounts receivable are recognized when the right to consideration becomes unconditional based upon contractual billing schedules. Payment terms on invoiced amounts are typically 30 days. Contract asset balances could consist of demobilization fee revenue that we expect to receive that is recognized ratably throughout the contract term, but invoiced upon completion of the demobilization activities. Once the demobilization fee revenue is invoiced the corresponding contract asset is transferred to accounts receivable. Contract liabilities include payments received for mobilization fees as well as upgrade activities, which are allocated to the overall performance obligation and recognized ratably over the initial term of the contract. The following table provides information about receivables, contract assets and contract liabilities related to contracts with customers: (in thousands) March 31, 2018 December 31, 2017 Receivables, which are included in "Accounts receivable, net" $ 16,193 $ 18,028 Contract assets $ — $ — Contract liabilities $ (377 ) $ (836 ) Significant changes in contract assets and contract liabilities balances during the period are as follows: March 31, 2018 (in thousands) Contract Assets Contract Liabilities Revenue recognized that was included in contract liabilities at beginning of period $ — $ 459 Increase in contract liabilities due to cash received, excluding amounts recognized as revenue $ — $ — Transferred to receivables from contract assets at beginning of period $ — $ — Transaction Price Allocated to the Remaining Performance Obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2018. The estimated revenue does not include amounts of variable consideration that are constrained. Year Ending (in thousands) 2018 2019 2020 Total Revenue $ 304 $ 73 $ — $ 377 The amounts presented in the table above consist only of fixed consideration related to fees for rig mobilizations and demobilizations, if applicable, which are allocated to the drilling services performance obligation as such performance obligation is satisfied. We have elected the exemption from disclosure of remaining performance obligations for variable consideration. Therefore, dayrate revenue to be earned on a rate scale associated with drilling conditions and level of service provided for each fractional-hour time increment over the contract term and other variable consideration such as penalties and reimbursable revenues, have been excluded from the disclosure. Contract Costs We capitalize costs incurred to fulfill our contracts that (i) relate directly to the contract, (ii) are expected to generate resources that will be used to satisfy our performance obligations under the contract and (iii) are expected to be recovered through revenue generated under the contract. These costs, which principally relate to rig mobilization costs at the commencement of a new contract, are deferred as a current or noncurrent asset (depending on the length of the contract term), and amortized ratably to contract drilling expense as services are rendered over the initial term of the related drilling contract. Such contract costs amounted to $ 0.3 million and $ 0.1 million , and were recorded as “Prepaid expenses and other current assets” and “Other long-term assets, net,” respectively, on our balance sheet at March 31, 2018 . We amortized $0.4 million of contract costs during the three months ended March 31, 2018 . Costs incurred for the demobilization of rigs at contract completion are recognized as incurred during the demobilization process. Costs incurred for rig modifications or upgrades required for a contract, which are considered to be capital improvements, are capitalized as drilling and other property and equipment and depreciated over the estimated useful life of the improvement. Impact of ASC 606 on Financial Statement Line Items The timing of our revenue recognition under ASC 606 is similar to revenue recognition under the previous guidance, except for the recognition of demobilization fee revenue, which we earn infrequently. Such revenue, which was recognized upon completion of a contract under the previous guidance, will now be estimated at contract inception and recognized as contract drilling revenue as the drilling services performance obligation is satisfied, subject to constraint, with an offset to a contract asset. As we had no existing contracts as of January 1, 2018, where we expect to receive a demobilization fee from our customers, there was no cumulative effect of a change in accounting principle required to adjust our January 1, 2018 retained earnings. |
Financial Instruments and Fair
Financial Instruments and Fair Value | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value | Financial Instruments and Fair Value Fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, there exists a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 Unadjusted quoted market prices for identical assets or liabilities in an active market; Level 2 Quoted market prices for identical assets or liabilities in an active market that have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable through corroboration with observable market data, including quoted market prices for similar assets or liabilities; and Level 3 Unobservable inputs for the asset or liability only used when there is little, if any, market activity for the asset or liability at the measurement date. This hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The carrying value of certain of our financial instruments, consisting primarily of cash and cash equivalents, accounts receivable and accounts payable, approximates their fair value due to the short-term nature of such instruments. The fair value of our Credit Facility debt is determined by Level 3 measurements based on the amount of future cash flows associated with the debt, discounted using our current borrowing rate for comparable debt instruments (the Income Method). Based on our evaluation of the risk free rate, the market yield and credit spreads on comparable company publicly traded debt issues, we used an annualized discount rate, including a credit valuation allowance, of 6.2% . The fair value of our capital lease obligations is determined using Level 3 measurements using our current incremental borrowing rate. The estimated fair value of our long-term debt, including our capital lease obligations, totaled $54.9 million and $50.6 million as of March 31, 2018 and December 31, 2017 , respectively, compared to a carrying amount of $53.9 million and $49.3 million as of March 31, 2018 and December 31, 2017 , respectively. The fair value of our assets held for sale is determined using Level 3 measurements. Fair value measurements are applied with respect to our non-financial assets and liabilities measured on a non-recurring basis, which would consist of measurements primarily of long-lived assets. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories All of our inventory as of March 31, 2018 and December 31, 2017 consisted of supplies held for use in our drilling operations. |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following: (in thousands) March 31, 2018 December 31, 2017 Accrued salaries and other compensation $ 1,583 $ 2,646 Insurance 1,605 507 Deferred revenues (contract liabilities) 335 762 Property, sales and other taxes 1,262 2,693 Other 233 361 $ 5,018 $ 6,969 |
Long-term Debt
Long-term Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Our Long-term Debt consisted of the following: (in thousands) March 31, 2018 December 31, 2017 Credit Facility due November 5, 2020 $ 53,220 48,541 Capital lease obligations 1,177 1,270 54,397 49,811 Less: current portion (511 ) (533 ) Long-term debt $ 53,886 $ 49,278 Credit Facility In November 2014, we entered into our Credit Facility with a syndicate of financial institutions led by CIT Finance, LLC, that provided for a committed $155.0 million Credit Facility and an additional uncommitted $25.0 million accordion feature that allowed for future increases in the facility. In 2015, we amended the Credit Facility to provide for a springing lock-box arrangement and, in light of market conditions and our reduced capital plans, reduce aggregate commitments to $125.0 million and modify certain maintenance covenants. In 2016, we amended the Credit Facility to reduce aggregate commitments to $85.0 million and further modify certain maintenance covenants. In connection with this amendment, we expensed certain previously deferred debt issuance costs totaling $0.5 million reflecting the reduction in borrowing capacity. In 2017, we amended the Credit Facility to extend the maturity date by two years to November 5, 2020 and to provide for an additional uncommitted $65.0 million accordion feature that allows for future increases in facility commitments. Interest under the Credit Facility remained unchanged. The amendment also contained various changes to the financial and other covenants to accommodate the extension in term, including changes to the leverage ratio covenant, fixed charge coverage ratio covenant and rig utilization ratio covenant. The obligations under the Credit Facility are secured by all of our assets and are unconditionally guaranteed by all of our current and future direct and indirect subsidiaries. Borrowings under the Credit Facility are subject to a borrowing base formula that allows for borrowings of up to 85% of eligible trade accounts receivable not more than 90 days outstanding, plus up to a certain percentage, the “advance rate”, of the appraised forced liquidation value of our eligible, completed and owned drilling rigs. As of March 31, 2018 , the advance rate was 72.5% . The advance rate declines 1.25% each quarter through June 2019. Thereafter, through the maturity date, the advance rate remains at 65% . Rigs that remain idle for 90 consecutive days or longer are removed from the borrowing base until they are contracted. In addition, rigs are appraised two times a year and are subject to upward or downward revisions as a result of market conditions as well as the age of the rig. At our election, interest under the Credit Facility is determined by reference, at our option, to either (i) the London Interbank Offered Rate (“LIBOR”), plus 4.5% or (ii) a “base rate” equal to the higher of the prime rate published by JP Morgan Chase Bank or three-month LIBOR plus 1% , plus in each case, 3.5% , the federal funds effective rate plus 0.05% . We also pay, on a quarterly basis, a commitment fee of 0.50% per annum on the unused portion of the Credit Facility commitment. As of March 31, 2018 , the weighted average interest rate on our borrowings was 6.35% . The Credit Facility contains various financial covenants including a leverage covenant, fixed charge coverage ratio and rig utilization ratio. Additionally, there are restrictive covenants that limit our ability to, among other things: incur or guarantee additional indebtedness or issue disqualified capital stock; transfer or sell assets; pay dividends or distributions; redeem subordinated indebtedness; make certain types of investments or make other restricted payments; create or incur liens; consummate a merger, consolidation or sale of all or substantially all assets; and engage in business other than a business that is the same or similar to the current business and reasonably related businesses. The Credit Facility does, however, permit us to incur up to $20.0 million of additional indebtedness for the purchase of additional rigs or rig equipment. As of March 31, 2018 , we are in compliance with these covenants. Under the Credit Agreement, as amended, for purposes of calculating EBITDA, non-cash stock-based compensation is added back to EBITDA, as well as up to $2.0 million per year of previously capitalized construction costs that were incurred in 2017. In April 2018, in connection with the construction of our 15th ShaleDriller rig, we amended the Credit Facility as follows: (i) permit capital expenditures up to a maximum of $13 million associated with the new rig to be excluded from the calculation of our fixed charge coverage ratio covenant, (ii) calculate EBITDA during the second quarter of 2018 on an annualized quarterly basis, (iii) calculate EBITDA during the third quarter of 2018 on an annualized six-month basis and (iv) calculate EBITDA during the fourth quarter of 2018 on an annualized nine-month basis. The Credit Facility provides that an event of default may occur if a material adverse change to ICD occurs, which is considered a subjective acceleration clause under applicable accounting rules. In accordance with ASC 470-10-45, because of the existence of this clause, borrowings under the Credit Facility will be required to be classified as current in the event the springing lock-box event occurs, regardless of the actual maturity of the borrowings. The requirement for a mandatory lock-box trigger occurs when availability under the Credit Facility is $10.0 million or less. We had $53.2 million in outstanding borrowings under the Credit Facility at March 31, 2018 . Remaining availability of our $85.0 million commitment under the Credit Facility was $31.8 million at March 31, 2018 . Capital Lease Obligations During the first quarter of 2016, our vehicle lease agreements were amended, which resulted in a change in the classification of certain leases from operating leases to capital leases. On the amendment date we recorded $0.8 million in capital lease obligations, representing the lesser of fair market value or the present value of future minimum lease payments on the conversion date. These leases generally have initial terms of 36 months and are paid monthly. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation In March 2012, we adopted the 2012 Omnibus Long-Term Incentive Plan (the “2012 Plan”) providing for common stock-based awards to employees and non-employee directors. The 2012 Plan was subsequently amended in August 2014 and June 2016. The 2012 Plan, as amended, permits the granting of various types of awards, including stock options, restricted stock and restricted stock unit awards, and up to 4,754,000 shares were authorized for issuance. Restricted stock and restricted stock units may be granted for no consideration other than prior and future services. The purchase price per share for stock options may not be less than the market price of the underlying stock on the date of grant. Stock options expire ten years after the grant date. We have the right to satisfy option exercises from treasury shares and from authorized but unissued shares. As of March 31, 2018 , approximately 1,016,855 shares were available for future awards. In the first quarter of 2017, we adopted ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The FASB issued this accounting standard in an effort to simplify the accounting for employee share-based payments and improve the usefulness of the information provided to users of financial statements. Our policy is to account for forfeitures of share-based compensation awards as they occur. A summary of compensation cost recognized for stock-based payment arrangements is as follows: (in thousands) Three Months Ended March 31, 2018 2017 Compensation cost recognized: Stock options $ — $ — Restricted stock and restricted stock units 644 1,012 Total stock-based compensation $ 644 $ 1,012 No stock-based compensation was capitalized in connection with rig construction activity during the three months ended March 31, 2018 or the three months ended March 31, 2017 . Stock Options We use the Black-Scholes option pricing model to estimate the fair value of stock options granted to employees and non-employee directors. The fair value of the options is amortized to compensation expense on a straight-line basis over the requisite service periods of the stock awards, which are generally the vesting periods. There were no stock options granted during the three months ended March 31, 2018 or the three months ended March 31, 2017 . A summary of stock option activity and related information for the three months ended March 31, 2018 is as follows: Three Months Ended March 31, 2018 Options Weighted Average Exercise Price Outstanding at January 1, 2018 682,950 $ 12.74 Granted — — Exercised — — Forfeited/expired — — Outstanding at March 31, 2018 682,950 $ 12.74 Exercisable at March 31, 2018 682,950 $ 12.74 The number of options vested at March 31, 2018 was 682,950 with a weighted average remaining contractual life of 4.1 years and a weighted average exercise price of $12.74 per share. There were no unvested options or unrecognized compensation cost related to outstanding stock options at March 31, 2018 . Restricted Stock Restricted stock awards consist of grants of our common stock that vest ratably over three to four years . We recognize compensation expense on a straight-line basis over the vesting period. The fair value of restricted stock awards is determined based on the estimated fair market value of our shares on the grant date. As of March 31, 2018 , there was no unrecognized compensation cost related to unvested restricted stock awards and all previously issued restricted stock awards had vested. Restricted Stock Units We have granted restricted stock units ("RSUs") to key employees under the 2012 Plan. We have granted three -year time vested RSUs, as well as performance-based and market-based RSUs, where each unit represents the right to receive, at the end of a vesting period, up to two shares of ICD common stock with no exercise price. Exercisability of the market-based RSUs is based on our three-year total shareholder return ("TSR") as measured against the TSR of a defined peer group and vesting of the performance-based RSUs is based on our cumulative EBITDA, safety or uptime performance statistics, as defined in the restricted stock unit agreement, over a three-year period. We used a Monte Carlo simulation model to value the TSR market-based RSUs. The fair value of the performance-based RSUs is based on the market price of our common stock on the date of grant. During the restriction period, the RSUs may not be transferred or encumbered, and the recipient does not receive dividend equivalents or have voting rights until the units vest. As of March 31, 2018 , there was $5.2 million of total unrecognized compensation cost related to unvested RSUs. This cost is expected to be recognized over a weighted average period of 1.1 years . A summary of the status of our RSUs as of March 31, 2018 , and of changes in RSUs outstanding during the three months ended March 31, 2018 , is as follows: Three Months Ended March 31, 2018 RSUs Weighted Outstanding at January 1, 2018 993,320 $ 5.11 Granted 641,041 4.55 Vested and converted (350,528 ) 5.03 Forfeited (22,589 ) 4.75 Outstanding at March 31, 2018 1,261,244 $ 4.86 |
Stockholders_ Equity and Earnin
Stockholders’ Equity and Earnings (Loss) per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Stockholders' Equity and Earnings (Loss) per Share | Stockholders’ Equity and Earnings (Loss) per Share As of March 31, 2018 , we had a total of 38,252,765 shares of common stock, $0.01 par value, outstanding. We also had 344,682 shares held as treasury stock. Total authorized common stock is 100,000,000 shares. Basic earnings (loss) per common share (“EPS”) are computed by dividing income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock. A reconciliation of the numerators and denominators of the basic and diluted losses per share computations is as follows: Three Months Ended March 31, (in thousands, except per share data) 2018 2017 Net loss (numerator): $ (4,146 ) $ (6,269 ) Loss per share: Basic and diluted $ (0.11 ) $ (0.17 ) Shares (denominator): Weighted average common shares outstanding - basic 38,124 37,546 Net effect of dilutive stock options, warrants and restricted stock units — — Weighted average common shares outstanding - diluted 38,124 37,546 For all periods presented, the computation of diluted loss per share excludes the effect of certain outstanding stock options and RSUs because their inclusion would be anti-dilutive. The number of options that were excluded from diluted loss per share were 682,950 during the three months ended March 31, 2018 and 920,020 during the three months ended March 31, 2017 . RSUs, which are not participating securities and are excluded from our basic and diluted loss per share because they are anti-dilutive, were 1,261,244 for the three months ended March 31, 2018 and 1,367,823 for the three months ended March 31, 2017 . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate was 1.2% for the three months ended March 31, 2018 , and (0.7)% for the three months ended March 31, 2017 . Taxes in the current year period relate to Louisiana state income tax and Texas margin tax. Taxes in the prior year period relate to Texas margin tax. For federal income tax purposes, we have applied a valuation allowance against any potential deferred tax asset which would have ordinarily resulted. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments As of March 31, 2018 , we had outstanding purchase commitments to a number of suppliers totaling $12.1 million , net of deposits previously made, related primarily to the construction of drilling rigs. Of these commitments, $11.9 million relates to equipment currently scheduled for delivery in 2018. Lease Commitments We lease certain equipment and vehicles under non-cancelable operating and capital leases. Future minimum lease payments under operating and capital lease commitments, with lease terms in excess of one year subsequent to March 31, 2018 , were as follows: (in thousands) 2018 $ 584 2019 689 2020 345 2021 8 $ 1,626 As of March 31, 2018 , property, plant and equipment on our balance sheet included $1.2 million of equipment under capital lease, which is net of $0.5 million of accumulated amortization. As of December 31, 2017 , property, plant and equipment in our balance sheet included $1.3 million of equipment under capital lease, net of $0.5 million of accumulated amortization. This equipment consists entirely of vehicles used in our operations. Contingencies We may be the subject of lawsuits and claims arising in the ordinary course of business from time to time. Management cannot predict the ultimate outcome of such lawsuits and claims. While lawsuits and claims are asserted for amounts that may be material should an unfavorable outcome be the result, management does not currently expect that the outcome of any of these known legal proceedings or claims will have a material adverse effect on our financial position or results of operations. |
Interim Financial Information (
Interim Financial Information (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting | These unaudited financial statements include the accounts of ICD, and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). These financial statements should be read along with our audited financial statements for the year ended December 31, 2017 , included in our Annual Report on Form 10-K for the year ended December 31, 2017 . In management’s opinion, these financial statements contain all adjustments necessary to fairly present our financial position, results of operations, cash flows and changes in stockholders' equity for all periods presented. As we had no items of other comprehensive income in any period presented, no other components of comprehensive income is presented. Interim results for the three months ended March 31, 2018 may not be indicative of results that will be realized for the full year ending December 31, 2018 . |
Revenue and Cost Recognition | Revenue and Cost Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09). We adopted ASU 2014-09 and its related amendments (collectively known as ASC 606) effective on January 1, 2018 using the modified retrospective method. While ASC 606 requires additional disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, its adoption did not have a material impact on the measurement or recognition of our revenues. We may recognize demobilization fee revenue earlier in the contract term than we have historically, but demobilization fee revenues are earned very infrequently under our contracts. See Note 3 "Revenue from Contracts with Customers" for the required disclosures related to the impact of adopting this standard and a discussion of our updated policies related to revenue recognition and accounting for costs to obtain and fulfill a customer contract. Contract Balances Accounts receivable are recognized when the right to consideration becomes unconditional based upon contractual billing schedules. Payment terms on invoiced amounts are typically 30 days. Contract asset balances could consist of demobilization fee revenue that we expect to receive that is recognized ratably throughout the contract term, but invoiced upon completion of the demobilization activities. Once the demobilization fee revenue is invoiced the corresponding contract asset is transferred to accounts receivable. Contract liabilities include payments received for mobilization fees as well as upgrade activities, which are allocated to the overall performance obligation and recognized ratably over the initial term of the contract. The amounts presented in the table above consist only of fixed consideration related to fees for rig mobilizations and demobilizations, if applicable, which are allocated to the drilling services performance obligation as such performance obligation is satisfied. We have elected the exemption from disclosure of remaining performance obligations for variable consideration. Therefore, dayrate revenue to be earned on a rate scale associated with drilling conditions and level of service provided for each fractional-hour time increment over the contract term and other variable consideration such as penalties and reimbursable revenues, have been excluded from the disclosure. Contract Costs We capitalize costs incurred to fulfill our contracts that (i) relate directly to the contract, (ii) are expected to generate resources that will be used to satisfy our performance obligations under the contract and (iii) are expected to be recovered through revenue generated under the contract. These costs, which principally relate to rig mobilization costs at the commencement of a new contract, are deferred as a current or noncurrent asset (depending on the length of the contract term), and amortized ratably to contract drilling expense as services are rendered over the initial term of the related drilling contract. Such contract costs amounted to $ 0.3 million and $ 0.1 million , and were recorded as “Prepaid expenses and other current assets” and “Other long-term assets, net,” respectively, on our balance sheet at March 31, 2018 . We amortized $0.4 million of contract costs during the three months ended March 31, 2018 . Costs incurred for the demobilization of rigs at contract completion are recognized as incurred during the demobilization process. Costs incurred for rig modifications or upgrades required for a contract, which are considered to be capital improvements, are capitalized as drilling and other property and equipment and depreciated over the estimated useful life of the improvement. Impact of ASC 606 on Financial Statement Line Items The timing of our revenue recognition under ASC 606 is similar to revenue recognition under the previous guidance, except for the recognition of demobilization fee revenue, which we earn infrequently. Such revenue, which was recognized upon completion of a contract under the previous guidance, will now be estimated at contract inception and recognized as contract drilling revenue as the drilling services performance obligation is satisfied, subject to constraint, with an offset to a contract asset. As we had no existing contracts as of January 1, 2018, where we expect to receive a demobilization fee from our customers, there was no cumulative effect of a change in accounting principle required to adjust our January 1, 2018 retained earnings. Revenue from Contracts with Customers Effective January 1, 2018, we adopted Accounting Standards Codification (“ASC”) Revenue from Contracts with Customers (“ASC 606”), using the modified retrospective method. This standard applies to all contracts with customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaborative arrangements and financial instruments. Under ASC 606, an entity recognizes revenue when it transfers control of the promised goods or services to its customer, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. If control transfers to the customer over time, an entity selects a method to measure progress that is consistent with the objective of depicting its performance. In determining the appropriate amount of revenue to be recognized as we fulfill our obligations under the agreement, the following steps must be performed at contract inception: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) we satisfy each performance obligation. Drilling Services Our revenues are principally derived from contract drilling services and the activities in our drilling contracts, for which revenues may be earned, include: (i) providing a drilling rig and the crews and supplies necessary to operate the rig; (ii) mobilizing and demobilizing the rig to and from the initial and final drill site, respectively; (iii) certain reimbursable activities; (iv) performing rig modification activities required for the contract; and (v) early termination revenues. We account for these integrated services provided under our drilling contracts as a single performance obligation, satisfied over time, that is comprised of a series of distinct time increments. Consideration for activities that are not distinct within the context of our contracts, and that do not correspond to a distinct time increment within the contract term, are allocated across the single performance obligation and recognized ratably in proportion to the actual services performed over the initial term of the contract. If taxes are required to be collected from customers relating to our drilling services, they are excluded from revenue. Dayrate Drilling Revenue. Our drilling contracts provide that revenue is earned based on a specified rate per day for the activity performed. The majority of revenue earned under daywork contracts is variable, and depends on a rate scale associated with drilling conditions and level of service provided for each fractional-hour time increment over the contract term. Such rates generally include the full operating rate, moving rate, standby rate, and force majeure rate and determination of the rate per time increment is made based on the actual circumstances as they occur. Other variable consideration under these contracts could include reduced revenue related to downtime, delays or moving caps. Mobilization/Demobilization Revenue . We may receive fees (on either a fixed lump-sum or variable dayrate basis) for the mobilization and demobilization of our rigs. These activities are not considered to be distinct within the context of the contract and therefore, the associated revenue is allocated to the overall performance obligation and recognized ratably over the initial term of the related drilling contract. We record a contract liability for mobilization fees received, which is amortized ratably to revenue as services are rendered over the initial term of the related drilling contract. Demobilization fee revenue expected to be received upon contract completion is estimated as part of the overall transaction price at contract inception and recognized in earnings ratably over the initial term of the contract with an offset to an accretive contract asset. In our contracts, there is generally significant uncertainty as to the amount of demobilization fee revenue that may ultimately be collected due to contractual provisions which stipulate that certain conditions be present at contract completion for such revenue to be received. For example, the amount collectible may be reduced to zero if the rig has been contracted with a new customer upon contract completion. Accordingly, the estimate for such revenue may be constrained depending on the facts and circumstances pertaining to the specific contract. We assess the likelihood of receiving such revenue based on past experience and knowledge of the market conditions. Reimbursable Revenues . We receive reimbursements from our customers for the purchase of supplies, equipment and other services provided at their request in accordance with a drilling contract or other agreement. Such reimbursable revenue is variable and subject to uncertainty, as the amounts received and timing thereof is highly dependent on factors outside of our influence. Accordingly, reimbursable revenue is fully constrained and not included in the total transaction price until the uncertainty is resolved, which typically occurs when the related costs are incurred on behalf of a customer. We are generally considered a principal in such transactions and record the associated revenue at the gross amount billed to the customer. Capital Modification Revenue . From time to time, we may receive fees (on either a fixed lump-sum or variable dayrate basis) from our customers for capital improvements to our rigs to meet their requirements. Such revenue is allocated to the overall performance obligation and recognized ratably over the initial term of the related drilling contract, as these activities are not considered to be distinct within the context of our contracts. We record a contract liability for such fees received up front, and recognize them ratably as contract drilling revenue over the initial term of the related drilling contract. Early Termination Revenue . Our contracts provide for early termination fees in the event our customers choose to cancel the contract prior to the specified contract term. We record a contract liability for such fees received up front, and recognize them ratably as contract drilling revenue over the initial term of the related drilling contract or until such time that all performance obligations are satisfied. |
Segment and Geographical Information | Segment and Geographical Information Our operations consist of one reportable segment because all of our drilling operations are located in the United States and have similar economic characteristics. Corporate management administers all properties as a whole rather than as discrete operating segments. Operational data is tracked by rig; however, financial performance is measured as a single enterprise and not on a rig-by-rig basis. Further, the allocation of capital resources is employed on a project-by-project basis across our entire asset base to maximize profitability without regard to individual geographic areas. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases, to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. Under the new guidance, lessees will be required to recognize (with the exception of short-term leases) at the commencement date, a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. This guidance is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted for all public business entities. We are currently evaluating the impact this guidance will have on our financial statements and have engaged a third party consultant to assist us in this evaluation process. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, as additional guidance on the measurement of credit losses on financial instruments. The new guidance requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. In addition, the guidance amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The new guidance is effective for public companies for interim and annual periods beginning after December 15, 2019, with early adoption permitted for interim and annual periods beginning after December 15, 2018. We are in the initial stages of evaluating the impact this guidance will have on our accounts receivable. |
Fair Value Measurement | Fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, there exists a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 Unadjusted quoted market prices for identical assets or liabilities in an active market; Level 2 Quoted market prices for identical assets or liabilities in an active market that have been adjusted for items such as effects of restrictions for transferability and those that are not quoted but are observable through corroboration with observable market data, including quoted market prices for similar assets or liabilities; and Level 3 Unobservable inputs for the asset or liability only used when there is little, if any, market activity for the asset or liability at the measurement date. This hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The carrying value of certain of our financial instruments, consisting primarily of cash and cash equivalents, accounts receivable and accounts payable, approximates their fair value due to the short-term nature of such instruments. |
Revenue from Contracts with C19
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes revenues from our contracts disaggregated by revenue generating activity contained therein for the three months ended March 31, 2018 and March 31, 2017 : Three Months Ended (in thousands) March 31, 2018 March 31, 2017 Dayrate drilling $ 23,777 $ 19,146 Mobilization 459 541 Reimbursables 1,231 541 Capital modification 160 — Other — 8 $ 25,627 $ 20,236 |
Summary of Contract with Customer, Asset and Liability | The following table provides information about receivables, contract assets and contract liabilities related to contracts with customers: (in thousands) March 31, 2018 December 31, 2017 Receivables, which are included in "Accounts receivable, net" $ 16,193 $ 18,028 Contract assets $ — $ — Contract liabilities $ (377 ) $ (836 ) Significant changes in contract assets and contract liabilities balances during the period are as follows: March 31, 2018 (in thousands) Contract Assets Contract Liabilities Revenue recognized that was included in contract liabilities at beginning of period $ — $ 459 Increase in contract liabilities due to cash received, excluding amounts recognized as revenue $ — $ — Transferred to receivables from contract assets at beginning of period $ — $ — |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2018. The estimated revenue does not include amounts of variable consideration that are constrained. Year Ending (in thousands) 2018 2019 2020 Total Revenue $ 304 $ 73 $ — $ 377 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following: (in thousands) March 31, 2018 December 31, 2017 Accrued salaries and other compensation $ 1,583 $ 2,646 Insurance 1,605 507 Deferred revenues (contract liabilities) 335 762 Property, sales and other taxes 1,262 2,693 Other 233 361 $ 5,018 $ 6,969 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Our Long-term Debt consisted of the following: (in thousands) March 31, 2018 December 31, 2017 Credit Facility due November 5, 2020 $ 53,220 48,541 Capital lease obligations 1,177 1,270 54,397 49,811 Less: current portion (511 ) (533 ) Long-term debt $ 53,886 $ 49,278 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Compensation Cost | A summary of compensation cost recognized for stock-based payment arrangements is as follows: (in thousands) Three Months Ended March 31, 2018 2017 Compensation cost recognized: Stock options $ — $ — Restricted stock and restricted stock units 644 1,012 Total stock-based compensation $ 644 $ 1,012 |
Summary of Stock Option Activity and Related Information | A summary of stock option activity and related information for the three months ended March 31, 2018 is as follows: Three Months Ended March 31, 2018 Options Weighted Average Exercise Price Outstanding at January 1, 2018 682,950 $ 12.74 Granted — — Exercised — — Forfeited/expired — — Outstanding at March 31, 2018 682,950 $ 12.74 Exercisable at March 31, 2018 682,950 $ 12.74 |
Schedule of Restricted Stock Activity | A summary of the status of our RSUs as of March 31, 2018 , and of changes in RSUs outstanding during the three months ended March 31, 2018 , is as follows: Three Months Ended March 31, 2018 RSUs Weighted Outstanding at January 1, 2018 993,320 $ 5.11 Granted 641,041 4.55 Vested and converted (350,528 ) 5.03 Forfeited (22,589 ) 4.75 Outstanding at March 31, 2018 1,261,244 $ 4.86 |
Stockholders_ Equity and Earn23
Stockholders’ Equity and Earnings (Loss) per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerators and Denominators of Basic and Diluted (Loss) Earnings Per Share | A reconciliation of the numerators and denominators of the basic and diluted losses per share computations is as follows: Three Months Ended March 31, (in thousands, except per share data) 2018 2017 Net loss (numerator): $ (4,146 ) $ (6,269 ) Loss per share: Basic and diluted $ (0.11 ) $ (0.17 ) Shares (denominator): Weighted average common shares outstanding - basic 38,124 37,546 Net effect of dilutive stock options, warrants and restricted stock units — — Weighted average common shares outstanding - diluted 38,124 37,546 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments Under Operating and Capital Lease Commitments | Future minimum lease payments under operating and capital lease commitments, with lease terms in excess of one year subsequent to March 31, 2018 , were as follows: (in thousands) 2018 $ 584 2019 689 2020 345 2021 8 $ 1,626 |
Nature of Operations and Rece25
Nature of Operations and Recent Events - Operations & Oil and Natural Gas Prices and Drilling Activity (Details) | Apr. 13, 2018$ / bbl | Feb. 11, 2016$ / bbl | Dec. 31, 2015$ / bbl | Sep. 30, 2014$ / bbl | Apr. 16, 2018$ / MMBTU | Dec. 31, 2017$ / MMBTU | Dec. 31, 2016$ / MMBTU | Dec. 31, 2015$ / MMBTU | Dec. 31, 2014$ / MMBTU | Mar. 31, 2018drilling_rig |
Property, Plant and Equipment [Line Items] | ||||||||||
Closing price of oil (in dollars per barrel) | 37.13 | 106.06 | ||||||||
Market price of oil (in dollars per barrel) | 26.19 | |||||||||
Natural gas price (dollar per MMBtu) | $ / MMBTU | 2.99 | 2.52 | 2.62 | 4.37 | ||||||
Operating rig | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Number of rigs | drilling_rig | 14 | |||||||||
Subsequent Event | ||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||
Market price of oil (in dollars per barrel) | 67.35 | |||||||||
Natural gas price (dollar per MMBtu) | $ / MMBTU | 3.04 |
Nature of Operations and Rece26
Nature of Operations and Recent Events - Assets Held For Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Loss (gain) on disposition of assets, net | $ (82) | $ 828 | ||||
Decrease in assets held-for-sale | (2,717) | $ 0 | ||||
Increase (decrease) to property, plant and equipment | $ 2,700 | |||||
Property, plant and equipment, net | 274,046 | $ 275,105 | $ 275,105 | |||
Corporate Headquarters And Rig Assembly Yard | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Property, plant and equipment classified as held for sale | $ 4,000 | |||||
Loss (gain) on disposition of assets, net | (208) | $ 600 | $ 500 | |||
Decrease in assets held-for-sale | 2,700 | $ 2,700 | ||||
Increase (decrease) to property, plant and equipment | 2,900 | |||||
Corporate Headquarters Impaired Buildings | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Loss (gain) on disposition of assets, net | 173 | |||||
Increase (decrease) to property, plant and equipment | (173) | |||||
Property, plant and equipment, net | $ 0 |
Interim Financial Information -
Interim Financial Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2018segment | |
Accounting Policies [Abstract] | |
Reportable segments | 1 |
Revenue From Contracts with C28
Revenue From Contracts with Customers - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customers | $ 25,627 | $ 20,236 |
Dayrate drilling | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customers | 23,777 | 19,146 |
Mobilization | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customers | 459 | 541 |
Reimbursables | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customers | 1,231 | 541 |
Capital modification | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customers | 160 | 0 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customers | $ 0 | $ 8 |
Revenue from Contract with Cust
Revenue from Contract with Customers - Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Abstract] | ||
Receivables, which are included in Accounts receivable, net | $ 16,193 | $ 18,028 |
Contract assets | 0 | 0 |
Contract liabilities | $ (377) | $ (836) |
Revenue from Contract with Cu30
Revenue from Contract with Customers - Assets and Liabilities Rollforward (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized that was included in contract liabilities at beginning of period | $ 459 |
Increase in contract liabilities due to cash received, excluding amounts recognized as revenue | 0 |
Transferred to receivables from contract assets at beginning of period | $ 0 |
Revenue from Contracts with C31
Revenue from Contracts with Customers - Remaining Performance Obligation (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations, expected to be satisfied | $ 304 |
Performance obligation expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations, expected to be satisfied | $ 73 |
Performance obligation expected to be satisfied, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligations, expected to be satisfied | $ 377 |
Performance obligation expected to be satisfied, expected timing | 2 years |
Revenue from Contracts with C32
Revenue from Contracts with Customers Revenue from Contracts with Customers - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Capitalized contract costs, current | $ 0.3 |
Capitalized contract costs, noncurrent | 0.1 |
Amortization of contract costs | $ 0.4 |
Financial Instruments and Fai33
Financial Instruments and Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Annualized discount rate (as a percent) | 6.20% | |
Long-term debt, fair value | $ 54,900 | $ 50,600 |
Long-term debt, carrying value | $ 53,886 | $ 49,278 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Accrued salaries and other compensation | $ 1,583 | $ 2,646 |
Insurance | 1,605 | 507 |
Deferred revenues (contract liabilities) | 335 | 762 |
Property, sales and other taxes | 1,262 | 2,693 |
Other | 233 | 361 |
Accrued liabilities | $ 5,018 | $ 6,969 |
Long-term Debt - Schedule of Lo
Long-term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-term debt, including current portion | $ 54,397 | $ 49,811 |
Less: current portion | (511) | (533) |
Long-term debt | 53,886 | 49,278 |
Capital lease obligations | ||
Debt Instrument [Line Items] | ||
Long-term debt, including current portion | 1,177 | 1,270 |
Credit Facility due November 5, 2020 | Line of credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, including current portion | $ 53,220 | $ 48,541 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2018USD ($) | Apr. 30, 2016USD ($) | Mar. 31, 2018USD ($)rig_appraisal | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Jul. 14, 2017 | Apr. 14, 2016USD ($) | Oct. 31, 2015USD ($) | Nov. 30, 2014USD ($) | |
Debt Instrument [Line Items] | |||||||||
Number of rig appraisals, annually | rig_appraisal | 2 | ||||||||
Aggregate borrowings | $ 54,397,000 | $ 49,811,000 | |||||||
Capital lease obligations recorded, reclassification from operating leases | $ 800,000 | ||||||||
Capital leases, term (months) | 36 months | ||||||||
Revolving credit facility | Line of credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowing limit based on eligible trade accounts (as a percent) | 85.00% | ||||||||
Eligible trade accounts receivable days outstanding limit (not more than) | 90 days | ||||||||
Borrowing limit based on appraised forced liquidation of eligible completed and owned drilling rigs (up to) (as a percent) | 72.50% | ||||||||
Interest rate, basis spread based on availability (as a percent) | 3.50% | ||||||||
Commitment fee on unused capacity (as a percent) | 0.50% | ||||||||
Weighted average interest rate on borrowings (as a percent) | 6.35% | ||||||||
Line of credit facility, higher borrowing capacity option | $ 20,000,000 | ||||||||
Line of credit facility, springing lock box arrangement, threshold | $ 10,000,000 | ||||||||
Aggregate borrowings | 53,220,000 | $ 48,541,000 | |||||||
Borrowing base | $ 31,800,000 | ||||||||
Revolving credit facility | Line of credit | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate, basis spread (as a percent) | 4.50% | ||||||||
Revolving credit facility | Line of credit | Three-month LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate, basis spread (as a percent) | 1.00% | ||||||||
Revolving credit facility | Line of credit | Federal funds, effective rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate, basis spread (as a percent) | 0.05% | ||||||||
Revolving credit facility | Line of credit | CIT Finance, LLC syndicate | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving credit facility, maximum borrowing capacity | $ 85,000,000 | $ 125,000,000 | $ 155,000,000 | ||||||
Deferred debt issuance costs expensed | $ 500,000 | ||||||||
Additional term from extension | 2 years | ||||||||
Decrease borrowing limit quarterly (as a percent) | 1.25% | ||||||||
Maximum amount of previously capitalized construction costs added back to EBITDA | $ 2,000,000 | ||||||||
Revolving credit facility | Line of credit | CIT Finance, LLC syndicate | Accordion feature | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving credit facility, maximum borrowing capacity | $ 65,000,000 | $ 25,000,000 | |||||||
Minimum | Revolving credit facility | Line of credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowing limit based on appraised forced liquidation of eligible completed and owned drilling rigs (up to) (as a percent) | 65.00% | ||||||||
Subsequent Event | Revolving credit facility | Line of credit | CIT Finance, LLC syndicate | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, capital expenditures excluded from fixed charge coverage ratio | $ 13,000,000 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation capitalized due to rig construction activity | $ 0 | $ 0 |
Options, granted (in shares) | 0 | 0 |
Options, exercisable (in shares) | 682,950 | |
Remaining contractual life (years) | 4 years 1 month | |
Weighted-average exercise price (in dollars per share) | $ 12.74 | |
Unrecognized compensation costs | $ 0 | |
Restricted stock | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (years) | 3 years | |
Restricted stock | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (years) | 4 years | |
Restricted stock units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period (years) | 3 years | |
Unrecognized compensation costs | $ 5,200,000 | |
Weighted average recognition period | 1 year 1 month | |
2012 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized (in shares) | 4,754,000 | |
Number of shares available for future awards (in shares) | 1,016,855 | |
2012 Plan | Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock option expiration period (years) | 10 years |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | $ 644 | $ 1,012 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | 0 | 0 |
Restricted stock and restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | $ 644 | $ 1,012 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Options | ||
Options, beginning balance (in shares) | 682,950 | |
Options, granted (in shares) | 0 | 0 |
Options, exercised (in shares) | 0 | |
Options, forfeited/expired (in shares) | 0 | |
Options, ending balance (in shares) | 682,950 | |
Options, exercisable (in shares) | 682,950 | |
Weighted Average Exercise Price | ||
Weighted average exercise price, beginning balance (in dollars per share) | $ 12.74 | |
Weighted average exercise price, granted (in dollars per share) | 0 | |
Weighted average exercise price, exercised (in dollars per share) | 0 | |
Weighted average exercise price, forfeited/expired (in dollars per share) | 0 | |
Weighted average exercise price, ending balance (in dollars per share) | 12.74 | |
Weighted-average exercise price, exercisable (in dollars per share) | $ 12.74 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Activity (Details) - Restricted stock units (RSUs) | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Shares | |
Number, beginning balance (in shares) | shares | 993,320 |
Number, granted (in shares) | shares | 641,041 |
Number, vested (in shares) | shares | (350,528) |
Number, forfeited (in shares) | shares | (22,589) |
Number, ending balance (in shares) | shares | 1,261,244 |
Weighted Average Grant-Date Fair Value Per Share | |
Weighted average grant date fair value per share, beginning balance (in dollars per share) | $ / shares | $ 5.11 |
Weighted average grant date fair value per share, granted (in dollars per share) | $ / shares | 4.55 |
Weighted average grant date fair value per share, vested (in dollars per share) | $ / shares | 5.03 |
Weighted average grant date fair value per share, forfeited (in dollars per share) | $ / shares | 4.75 |
Weighted average grant date fair value per share, ending balance (in dollars per share) | $ / shares | $ 4.86 |
Stockholders_ Equity and Earn41
Stockholders’ Equity and Earnings (Loss) per Share - Narrative (Details) - $ / shares | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | |
Treasury stock, number of shares held (in shares) | 344,682 | 261,694 | |
Shares authorized (in shares) | 100,000,000 | 100,000,000 | |
Equity Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 682,950 | 920,020 | |
Restricted stock units (RSUs) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities (in shares) | 1,261,244 | 1,367,823 | |
Common Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares outstanding (in shares) | 38,252,765 | 37,985,225 |
Stockholders_ Equity and Earn42
Stockholders’ Equity and Earnings (Loss) per Share - Basic and Diluted Computation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net loss (numerator): | ||
Net loss | $ (4,146) | $ (6,269) |
Loss per share: | ||
Basic and diluted (usd per share) | $ (0.11) | $ (0.17) |
Shares (denominator): | ||
Weighted average common shares outstanding - basic (in shares) | 38,124 | 37,546 |
Net effect of dilutive stock options, warrants and restricted stock units (in shares) | 0 | 0 |
Weighted average common shares outstanding - diluted (in shares) | 38,124 | 37,546 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate (as a percent) | 1.20% | (0.70%) |
Commitments and Contingencies44
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Outstanding purchase commitments | $ 12,100 | |
Outstanding purchase commitments, equipment to be delivered in 2017 | 11,900 | |
2,018 | 584 | |
2,019 | 689 | |
2,020 | 345 | |
2,021 | 8 | |
Total future lease payments | 1,626 | |
Long-term Purchase Commitment [Line Items] | ||
Property, plant and equipment, net | 274,046 | $ 275,105 |
Assets Held under Capital Leases | ||
Long-term Purchase Commitment [Line Items] | ||
Property, plant and equipment, net | 1,200 | 1,300 |
Accumulated depreciation | $ 500 | $ 500 |