SCOTTSDALE, Ariz., Nov. 6, 2014 /PRNewswire/ -- Nuverra
Environmental Solutions (NYSE: NES) ("Nuverra" or "the Company"), a
leading provider of full-cycle environmental solutions to the
energy and industrial end-markets, today announced financial
results for the third quarter ended September 30, 2014.
Third-Quarter Summary
- Shale solutions revenue from continuing operations of
$139.6 million, up 10.1%
sequentially, 5.9% year-over-year.
- Net loss from continuing operations of ($99.4) million, including a pre-tax, non-cash
goodwill impairment charge of $100.7
million.
- Adjusted EBITDA from continuing operations of $28.0 million, up 22.5% sequentially, 27.6%
year-over-year.
- $9.9 million of operating income
from continuing operations before the goodwill impairment
charge.
Mark D. Johnsrud, Chairman and
Chief Executive Officer, commented, "We are very pleased with our
overall operating performance in the third quarter, with increases
in revenue, adjusted EBITDA and margins. In addition,
operating income before the non-cash goodwill impairment charge was
$9.9 million. Third-quarter adjusted
EBITDA margin of 20.1% on continuing operations represented an
increase of more than 200 basis points sequentially and 340 basis
points year-over-year and reflects our focus on initiatives to
drive efficiency through better utilization of our people and
equipment, in addition to effective pricing and increased sales
activities."
Mr. Johnsrud continued, "Our teams across the basins are
concentrating on day-to-day operating activities to bring
comprehensive solutions to our customers. By focusing on
vertically integrating across all service lines to serve customers
through the entire life cycle of their wells, we can create the
operational leverage to maximize labor and equipment utilization
and expand margins."
Third-Quarter 2014 Financial Overview
Revenue from continuing operations for the three months ended
September 30, 2014 was $139.6 million, compared with $126.9 million in the second quarter of 2014 and
$131.8 million in the third quarter
of 2013. Including results from Thermo Fluids Inc. ("TFI"), which
is classified as a discontinued operation, revenue for the third
quarter was $170.5 million, compared
with $156.6 million in the second
quarter of 2014 and $162.6 million in
the third quarter of 2013.
Third-quarter adjusted EBITDA from continuing operations was
$28.0 million, compared with
$22.9 million in the second quarter
of 2014 and $22.0 million in the
third quarter of 2013. Including TFI, adjusted EBITDA for the third
quarter was $31.4 million, compared
with $25.9 million in the second
quarter of 2014 and $25.1 million in
the third quarter of 2013.
Growth in adjusted EBITDA from continuing operations in the
third quarter resulted from increased customer activities, enhanced
operating performance, improved utilization of labor and equipment,
and effective pricing. In all operating divisions, third-quarter
adjusted EBITDA and margins improved on a sequential
basis.
The Company generated operating cash flow from continuing
operations of $12.9 million
($17.7 million including TFI)
year-to-date through September 30,
2014. Year-to-date net cash capital expenditures from
continuing operations was $33.7
million, primarily relating to construction of the Company's
new facility for drilling solids in the Bakken Shale area.
On September 30, 2014, cash and
cash equivalents were $2.2 million.
Total debt was $577.3 million
($576.7 million net of unamortized
discount and premium), including $400.0
million of senior unsecured notes, $161.5 million drawn under the Company's
asset-based revolving credit facility and $15.8 million in capital leases.
During the third quarter, the Company completed a previously
announced organizational realignment of its shale solutions
business into three operating divisions: (1) the Northeast
Division, which includes the Marcellus and Utica Shale areas, (2)
the Southern Division, which includes the Haynesville, Eagle Ford,
Mississippian, Permian and Tuscaloosa Marine Shale areas, and (3)
the Rocky Mountain Division, which includes the Bakken Shale area.
This change in operating segments, along with other factors,
required the Company to conduct an interim impairment test of the
goodwill allocated to the new operating divisions. The resulting
$100.7 million pre-tax, non-cash
charge represented a write-down of the carrying value of goodwill
associated with the Northeast and Southern divisions.
Division Highlights
Rocky Mountain Division (Bakken)
Rocky Mountain Division revenue was up 13.1% sequentially in the
third quarter to $87.6 million,
compared to $77.5 million in the
second quarter of 2014. On a year-over-year basis, revenue
increased 17.0% when compared to 2013. The sequential increase was
primarily due to higher trucking logistics, water disposal and
solids disposal volumes.
Rental revenue in the Bakken was flat sequentially, primarily
due to a persistent oversupply of rental assets in the region. To
improve the utilization of its rental fleet, the Company
implemented a number of initiatives, including adding resources to
its sales team, and providing additional support specific to rental
package sales efforts.
Northeast Division (Marcellus/Utica)
Northeast Division revenue increased 14.6% on a sequential basis
to $25.8 million, compared to
$22.5 million in the second quarter
of 2014.
The increase was primarily due to sequential increases in
trucking logistics services and disposal volumes. Activities
continued to increase in October, with one of the Company's largest
customers in the region adding a third dedicated frac crew.
Southern Division (Haynesville/Eagle
Ford/Mississippian/Permian/TMS)
Southern Division revenue was essentially flat sequentially at
$26.3 million, compared to
$26.9 million in the second quarter
of 2014. On a year-over-year basis, Southern Division revenue
was down by 8.5% when compared with the third quarter of 2013.
Despite a slight decline in revenue in the Haynesville Shale
area due to a gradual shift in business from produced water
transportation to servicing drilling and completion activities,
increases in pipeline volumes and disposal well volumes in the
third quarter led to overall improved financial performance.
In the Eagle Ford, operations continued to meet increasing
customer activities and benefitted from improved labor and
equipment utilization.
William M. Austin Appointed to Board of Directors
Nuverra has appointed William M.
Austin, 68, to its Board of Directors, replacing
Andrew D. Seidel. Mr.
Austin has been a senior financial executive in the energy industry
for more than 30 years, and is currently President of Austin Lee
Ventures, a Houston-based
investment company.
Previously, he was Senior Vice President and Director of
Exterran GP, LLC, and Senior Vice President and CFO of Valerus
Compression Services, LP, both natural gas service companies.
Prior to that, he was Senior Vice President and CFO of Key Energy
Services, a leading oilfield services company. Earlier in his
career Mr. Austin was a Managing Director of Bankers Trust Co.,
serving in the Leveraged Buyout group and as head of the Energy
Group in Houston for 10 years.
"Bill is a recognized leader in our industry and an outstanding
addition to our Board," said Mr. Johnsrud. "His financial expertise
and industry knowledge will be an important resource in shaping our
strategies as we focus on continuously improving our financial
performance."
TFI Update
The Company provided an update on the ongoing process to divest
TFI, disclosing that it has been in discussions with multiple
interested parties. Based on these discussions and a non-binding
letter of intent executed with one prospective buyer, the Company
recorded a charge related to TFI of $49.0
million, which included a $45.5
million non-cash reduction in goodwill, as well as
$3.5 million in estimated transaction
costs.
Business Outlook
Mr. Johnsrud provided commentary on the Company's outlook for
the fourth quarter of 2014 and into 2015 in light of the recent
decline in crude oil prices and the potential impact to future
activity levels.
"We are pleased with our third-quarter performance and the
steady level of activities that continued through October as we
remain highly focused on continuing to improve operational
efficiencies and utilization," Mr. Johnsrud said. "Our largest
customers are signaling that at current price levels their capital
spending plans will remain as planned for 2015. Therefore, we
expect increased activity in 2015.
"We also expect our growth investments to begin contributing in
2015, particularly related to the start-up of the new solids
management facility in the Bakken. We believe that the recent
actions we have taken to improve operating efficiencies will
position us well for 2015."
Conference Call & Webcast
The Company will host a conference call to discuss its third
quarter 2014 financial results at 4:30 p.m.
ET (1:30 p.m. PT) today. To
participate on the conference call, please dial +1-888-632-5007
(US) or +1-913-312-0378 (International) and reference conference ID
1771398. An audio replay of the call will be available
approximately one hour following the conclusion of the call through
November 13, 2014. The audio replay
of the conference call can be accessed by dialing +1-888-203-1112
(US) or +1-719-457-0820 (International) and entering access code
1771398. The call will be webcast live and a replay available by
accessing the "Investors" section of the Company's web site at
www.nuverra.com.
The Company will file its quarterly report on Form 10-Q with the
Securities and Exchange Commission on Monday, November 10, 2014. The Form 10-Q will be
available on the SEC website at www.sec.gov and the Nuverra website
at www.nuverra.com.
About Nuverra
Nuverra Environmental Solutions is among the largest companies
in the United States dedicated to
providing comprehensive and full-cycle environmental solutions to
customers in energy and industrial end-markets. Nuverra focuses on
the delivery, collection, treatment, recycling, and disposal of
restricted solids, water, wastewater, used motor oil, spent
antifreeze, waste fluids and hydrocarbons. The Company continues to
expand its suite of environmentally compliant and sustainable
solutions to customers who demand stricter environmental compliance
and accountability from their service providers. Interested parties
can access additional information about Nuverra on the Company's
web site at http://www.nuverra.com, and in documents filed with the
United States Securities and Exchange Commission, on the SEC's web
site at http://www.sec.gov.
About Non-GAAP Financial Measures
This press release contains non-GAAP financial measures as
defined by the rules and regulations of the United States
Securities and Exchange Commission. A non-GAAP financial measure is
a numerical measure of a company's historical or future financial
performance, financial position or cash flows that excludes
amounts, or is subject to adjustments that have the effect of
excluding amounts, that are included in the most directly
comparable measure calculated and presented in accordance with GAAP
in the statements of operations or balance sheets of the Company;
or includes amounts, or is subject to adjustments that have the
effect of including amounts, that are excluded from the most
directly comparable measure so calculated and presented.
Reconciliations of these non-GAAP financial measures to their
comparable GAAP financial measures are included in the attached
financial tables.
These non-GAAP financial measures are provided because
management of the Company uses these financial measures in
maintaining and evaluating the Company's ongoing financial results
and trends. Management uses this non-GAAP information as an
indicator of business performance, and evaluates overall management
with respect to such indicators. Management believes that excluding
items such as acquisition expenses, amortization of intangible
assets, stock-based compensation, asset impairments, restructuring
charges, expenses related to litigation and resolution of lawsuits,
and other non-recurring charges, among other items that are
inconsistent in amount and frequency (as with acquisition
expenses), or determined pursuant to complex formulas that
incorporate factors, such as market volatility, that are beyond our
control (as with stock-based compensation), for purposes of
calculating these non-GAAP financial measures facilitates a more
meaningful evaluation of the Company's current operating
performance and comparisons to the past and future operating
performance. The Company believes that providing non-GAAP financial
measures such as EBITDA, adjusted EBITDA, adjusted net income
(loss), adjusted net income (loss) per share, and operating working
capital, in addition to related GAAP financial measures, provides
investors with greater transparency to the information used by the
Company's management.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995. Words such as
"expect," "estimate," "project," "budget," "forecast,"
"anticipate," "intend," "plan," "may," "will," "could," "should,"
"believes," "predicts," "potential," "continue," "confident," and
similar expressions are intended to identify such forward-looking
statements. Forward-looking statements in the press release
include, without limitation, forecasts of growth, revenues,
business activity, adjusted EBITDA, pipeline and solids treatment
initiatives, and landfill and treatment facility activities, as
well as statements regarding possible divestitures, timing of such
divestitures, acquisitions, financings, business growth and
expansion opportunities, availability of capital, ability to access
capital markets, and other matters that involve known and unknown
risks, uncertainties and other factors that may cause results,
levels of activity, performance or achievements to differ
materially from results expressed or implied by this press release.
Such risk factors include, among others: difficulties encountered
in acquiring and integrating businesses; uncertainties in
evaluating goodwill and long-lived assets for potential impairment;
potential impact of litigation; risks of successfully consummating
expected transactions within the timeframes or on the terms
contemplated, including risks that such transactions may fail to
close due to unsatisfied closing conditions; uncertainty relating
to successful negotiation, execution and consummation of all
necessary definitive agreements in connection with our strategic
initiatives; whether certain markets grow as anticipated; pricing
pressures; risks associated with our indebtedness; low oil and or
natural gas prices; changes in customer drilling and completion
activities and capital expenditure plans; shifts in production
among shale areas in which we operate and/or into shale areas in
which we currently do not have operations; control of costs and
expenses; and the competitive and regulatory environment.
Additional risks and uncertainties are set forth in the Company's
Form 10-Q for the three months ended September 30, 2014 (which will be filed on or
before November 10, 2014), its Annual
Report on Form 10-K for the fiscal year ended December 31, 2013, as well as the Company's other
reports filed with the United States Securities and Exchange
Commission, which are available at http://www.sec.gov and the
Company's web site at http://www.nuverra.com. As a result of the
foregoing considerations and the other limitations of non-GAAP
measures described elsewhere herein, you are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date of this press release. All forward-looking
statements are qualified in their entirety by this cautionary
statement. The Company undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
Nuverra Environmental Solutions, Inc.
Liz Merritt, 480-878-7452
VP-Investor Relations & Communications
ir@nuverra.com
- or -
The Piacente Group, Inc.
Don Markley or Glenn Garmont, 212-481-2050
nuverra@tpg-ir.com
NUVERRA
ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
Non-rental
revenue
|
|
|
$ 122,474
|
|
$ 112,484
|
|
$ 339,617
|
|
$
336,303
|
|
Rental
revenue
|
|
|
17,169
|
|
19,320
|
|
54,902
|
|
61,125
|
|
Total revenue
|
|
|
139,643
|
|
131,804
|
|
394,519
|
|
397,428
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
|
|
Direct
operating expenses
|
|
|
97,037
|
|
97,038
|
|
283,420
|
|
284,694
|
|
General and
administrative expenses
|
|
|
11,102
|
|
34,256
|
|
54,305
|
|
63,738
|
|
Depreciation
and amortization
|
|
|
21,585
|
|
23,767
|
|
63,866
|
|
79,821
|
|
Impairment of
long-lived assets
|
|
|
-
|
|
108,401
|
|
-
|
|
111,900
|
|
Impairment of
goodwill
|
|
|
100,716
|
|
-
|
|
100,716
|
|
-
|
|
Restructuring
and exit costs
|
|
|
-
|
|
-
|
|
-
|
|
1,453
|
|
Total operating expenses
|
|
|
230,440
|
|
263,462
|
|
502,307
|
|
541,606
|
|
Loss from
operations
|
|
|
(90,797)
|
|
(131,658)
|
|
(107,788)
|
|
(144,178)
|
|
Interest expense,
net
|
|
|
(12,956)
|
|
(13,459)
|
|
(37,975)
|
|
(40,130)
|
|
Other income
(expense), net
|
|
|
321
|
|
(4,196)
|
|
373
|
|
(5,435)
|
|
Loss on
extinguishment of debt
|
|
|
-
|
|
-
|
|
(3,177)
|
|
-
|
|
Loss from
continuing operations before income taxes
|
|
|
(103,432)
|
|
(149,313)
|
|
(148,567)
|
|
(189,743)
|
|
Income tax
benefit
|
|
|
4,014
|
|
51,315
|
|
12,513
|
|
66,075
|
|
Loss from
continuing operations
|
|
|
(99,418)
|
|
(97,998)
|
|
(136,054)
|
|
(123,668)
|
|
Loss from
discontinued operations, net of income taxes
|
|
|
(45,568)
|
|
(95,740)
|
|
(43,656)
|
|
(95,551)
|
|
Net loss
attributable to common stockholders
|
|
|
$ (144,986)
|
|
$ (193,738)
|
|
$ (179,710)
|
|
$ (219,219)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common
share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
loss from continuing operations
|
|
|
$
(3.73)
|
|
$ (3.94)
|
|
$
(5.28)
|
|
$
(5.09)
|
|
Basic and diluted
loss from discontinued operations
|
|
|
(1.71)
|
|
(3.85)
|
|
(1.70)
|
|
(3.93)
|
|
Net loss per basic
and diluted share
|
|
|
$
(5.44)
|
|
$ (7.79)
|
|
$
(6.98)
|
|
$
(9.02)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding used in computing net loss per basic and diluted
common share
|
|
|
26,665
|
|
24,854
|
|
25,742
|
|
24,316
|
NUVERRA
ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(In
thousands)
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
2014
|
|
2013
|
|
|
(Unaudited)
|
|
(Note 1)
|
|
Assets
|
|
|
|
|
Cash and cash
equivalents
|
$
2,214
|
|
$
8,783
|
|
Restricted
cash
|
112
|
|
110
|
|
Accounts receivable,
net
|
106,297
|
|
87,086
|
|
Inventories
|
4,713
|
|
3,328
|
|
Prepaid expenses and
other receivables
|
5,148
|
|
10,457
|
|
Deferred income
taxes
|
18,950
|
|
30,072
|
|
Other current
assets
|
98
|
|
409
|
|
Current assets held
for sale
|
25,008
|
|
21,446
|
|
Total current
assets
|
162,540
|
|
161,691
|
|
Property, plant and
equipment, net
|
482,402
|
|
498,541
|
|
Equity
investments
|
3,818
|
|
4,032
|
|
Intangibles,
net
|
136,456
|
|
149,363
|
|
Goodwill
|
307,980
|
|
408,696
|
|
Other
assets
|
18,722
|
|
21,136
|
|
Long-term assets held
for sale
|
123,492
|
|
167,304
|
|
Total
assets
|
$
1,235,410
|
|
$ 1,410,763
|
|
Liabilities and
Equity
|
|
|
|
|
Accounts
payable
|
$
21,505
|
|
$
33,229
|
|
Accrued
expenses
|
58,473
|
|
63,431
|
|
Current portion of
contingent consideration
|
10,034
|
|
13,113
|
|
Current portion of
long-term debt
|
5,046
|
|
5,464
|
|
Financing obligation
to acquire non-controlling interest
|
10,693
|
|
-
|
|
Current liabilities
of discontinued operations
|
13,000
|
|
9,301
|
|
Total current
liabilities
|
118,751
|
|
124,538
|
|
Deferred income
taxes
|
20,541
|
|
42,982
|
|
Long-term portion of
debt
|
571,657
|
|
549,713
|
|
Long-term portion of
contingent consideration
|
1,484
|
|
2,344
|
|
Financing obligation
to acquire non-controlling interest
|
-
|
|
10,104
|
|
Other long-term
liabilities
|
3,879
|
|
4,324
|
|
Long-term liabilities
of discontinued operations
|
31,808
|
|
32,389
|
|
Total
liabilities
|
748,120
|
|
766,394
|
|
Commitments and
contingencies
|
|
|
|
|
Common
stock
|
29
|
|
27
|
|
Additional paid-in
capital
|
1,363,841
|
|
1,341,209
|
|
Treasury
stock
|
(19,506)
|
|
(19,503)
|
|
Accumulated
deficit
|
(857,074)
|
|
(677,364)
|
|
Total equity of
Nuverra Environmental Solutions, Inc.
|
487,290
|
|
644,369
|
|
Total liabilities and
equity
|
$
1,235,410
|
|
$ 1,410,763
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1: The condensed
consolidated balance sheet at December 31, 2013 has been derived
from the audited consolidated financial statements included in the
Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2013.
|
|
NUVERRA
ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
2014
|
|
2013
|
Cash flows from
operating activities:
|
|
|
|
|
Net loss
|
|
$
(179,710)
|
|
$
(219,219)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
Loss from
discontinued operations, net of income taxes
|
|
43,656
|
|
95,551
|
Depreciation
|
|
50,959
|
|
64,292
|
Amortization of
intangible assets
|
|
12,907
|
|
15,529
|
Amortization of
deferred financing costs
|
|
2,818
|
|
3,446
|
Amortization of
original issue discounts and premiums, net
|
|
112
|
|
106
|
Stock-based
compensation
|
|
2,305
|
|
3,295
|
Impairment of
long-lived assets
|
|
-
|
|
111,900
|
Impairment of
goodwill
|
|
100,716
|
|
-
|
(Gain) loss on
disposal of property, plant and equipment
|
|
(4,752)
|
|
381
|
Bad debt
expense
|
|
2,464
|
|
1,720
|
Loss on
extinguishment of debt
|
|
3,177
|
|
-
|
Deferred income
taxes
|
|
(11,320)
|
|
(66,921)
|
Write-down of cost
method investments
|
|
-
|
|
4,300
|
Other, net
|
|
1,555
|
|
491
|
Changes in operating
assets and liabilities, net of business acquisitions and purchase
price adjustments:
|
|
|
|
|
Accounts
receivable
|
|
(21,675)
|
|
14,987
|
Prepaid expenses and
other receivables
|
|
5,309
|
|
(191)
|
Accounts payable and
accrued expenses
|
|
5,859
|
|
43,396
|
Other assets and
liabilities, net
|
|
(1,435)
|
|
59
|
Net cash provided by
operating activities from continuing operations
|
|
12,945
|
|
73,122
|
Net cash provided by
operating activities from discontinued operations
|
|
4,754
|
|
3,253
|
Net cash provided by
operating activities
|
|
17,699
|
|
76,375
|
Cash flows from
investing activities:
|
|
|
|
|
Cash paid for
acquisitions, net of cash acquired
|
|
-
|
|
(10,570)
|
Proceeds from the
sale of property, plant and equipment
|
|
9,295
|
|
1,397
|
Purchases of
property, plant and equipment
|
|
(43,018)
|
|
(33,224)
|
Proceeds from
acquisition-related working capital adjustment
|
|
-
|
|
2,067
|
Net cash used in
investing activities from continuing operations
|
|
(33,723)
|
|
(40,330)
|
Net cash used in
investing activities from discontinued operations
|
|
(2,043)
|
|
(2,393)
|
Net cash used in
investing activities
|
|
(35,766)
|
|
(42,723)
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from
revolving credit facility
|
|
68,725
|
|
52,001
|
Payments on revolving
credit facility
|
|
(48,700)
|
|
(84,501)
|
Payments for deferred
financing costs
|
|
(796)
|
|
(828)
|
Payments on notes
payable and capital leases
|
|
(4,005)
|
|
(4,007)
|
Other financing
activities
|
|
(1,015)
|
|
(2,193)
|
Net cash provided by
(used in) financing activities of continuing operations
|
|
14,209
|
|
(39,528)
|
Net cash used in
financing activities of discontinued operations
|
|
-
|
|
(400)
|
Net cash provided by
(used in) financing activities
|
|
14,209
|
|
(39,928)
|
Net decrease in cash
and cash equivalents
|
|
(3,858)
|
|
(6,276)
|
Cash and cash
equivalents at beginning of period
|
|
9,212
|
|
16,211
|
Cash and cash
equivalents at end of period
|
|
5,354
|
|
9,935
|
Less: cash and cash
equivalents of discontinued operations at end of period
|
|
3,140
|
|
1,895
|
Cash and cash
equivalents of continuing operations at end of period
|
|
$
2,214
|
|
$
8,040
|
NUVERRA
ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES
|
UNAUDITED NON-GAAP
RECONCILIATIONS
|
(In
thousands)
|
|
Reconciliation of
Loss from continuing operations to EBITDA, Adjusted EBITDA from
continuing operations and Total Adjusted EBITDA:
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Loss from continuing
operations
|
$
(99,418)
|
|
$
(97,998)
|
|
$
(136,054)
|
|
$
(123,668)
|
Depreciation of
property, plant and equipment
|
17,378
|
|
20,571
|
|
50,959
|
|
64,292
|
Amortization of
intangible assets
|
4,207
|
|
3,196
|
|
12,907
|
|
15,529
|
Interest expense,
net
|
12,956
|
|
13,459
|
|
37,975
|
|
40,130
|
Income tax
benefit
|
(4,014)
|
|
(51,315)
|
|
(12,513)
|
|
(66,075)
|
EBITDA
|
(68,891)
|
|
(112,087)
|
|
(46,726)
|
|
(69,792)
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Transaction-related
costs, including earnout adjustments, net
|
-
|
|
508
|
|
513
|
|
1,879
|
Stock-based
compensation
|
897
|
|
1,172
|
|
2,305
|
|
3,295
|
Legal and
environmental costs, net
|
(2,326)
|
|
17,000
|
|
12,312
|
|
19,470
|
Impairment of
long-lived assets
|
-
|
|
108,401
|
|
-
|
|
111,900
|
Impairment of
goodwill
|
100,716
|
|
-
|
|
100,716
|
|
-
|
Restructuring, exit
and other costs
|
142
|
|
-
|
|
205
|
|
1,453
|
Write-off of cost
method investments
|
-
|
|
4,300
|
|
-
|
|
4,300
|
Loss on
extinguishment of debt
|
-
|
|
-
|
|
3,177
|
|
-
|
Integration,
severance and rebranding costs
|
-
|
|
2,684
|
|
2,072
|
|
5,686
|
Gain on disposal of
assets
|
(2,504)
|
|
-
|
|
(4,752)
|
|
-
|
Adjusted EBITDA from
continuing operations
|
28,034
|
|
21,978
|
|
69,822
|
|
78,191
|
Adjusted EBITDA from
discontinued operations
|
3,374
|
|
3,116
|
|
9,488
|
|
12,253
|
Total Adjusted
EBITDA
|
$
31,408
|
|
$
25,094
|
|
$
79,310
|
|
$
90,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Loss from discontinued operations to EBITDA from discontinued
operations and Adjusted EBITDA from discontinued
operations:
|
|
|
|
|
|
|
|
|
|
Three Months
Ended September 30,
|
|
Nine Months
Ended September 30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Loss from
discontinued operations
|
$
(45,568)
|
|
$
(95,740)
|
|
$
(43,656)
|
|
$
(95,551)
|
Depreciation of
property, plant and equipment
|
-
|
|
693
|
|
-
|
|
2,033
|
Amortization of
intangible assets
|
-
|
|
2,678
|
|
-
|
|
8,002
|
Interest
expense
|
-
|
|
14
|
|
-
|
|
14
|
Income tax (benefit)
expense
|
(329)
|
|
(3,600)
|
|
1,336
|
|
(2,843)
|
EBITDA from
discontinued operations
|
(45,897)
|
|
(95,955)
|
|
(42,320)
|
|
(88,345)
|
Adjustments:
|
|
|
|
|
|
|
|
Transaction-related
costs
|
3,806
|
|
230
|
|
5,737
|
|
383
|
Legal and
environmental costs
|
-
|
|
341
|
|
733
|
|
1,715
|
Impairment of
goodwill
|
45,463
|
|
98,500
|
|
45,463
|
|
98,500
|
Loss (gain) on
disposal of assets
|
2
|
|
-
|
|
(125)
|
|
-
|
Adjusted EBITDA from
discontinued operations
|
$
3,374
|
|
$
3,116
|
|
$
9,488
|
|
$
12,253
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Loss from operations to Operating income from continuing operations
before impairment of goodwill:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
|
|
|
|
|
|
2014
|
|
|
|
|
|
|
Loss from
operations
|
$
(90,797)
|
|
|
|
|
|
|
Impairment of
goodwill
|
100,716
|
|
|
|
|
|
|
Operating income from
continuing operations before impairment of goodwill
|
$
9,919
|
|
|
|
|
|
|
Logo -
http://photos.prnewswire.com/prnh/20141008/150889
SOURCE Nuverra Environmental Solutions, Inc.