SCOTTSDALE, Ariz., Aug. 10, 2015 /PRNewswire/ -- Nuverra
Environmental Solutions, Inc. (NYSE: NES) ("Nuverra" or the
"Company") announced financial and operating results today for the
second quarter and six months ended June 30,
2015.
SUMMARY OF QUARTERLY RESULTS
- Revenue from continuing operations for the second quarter of
$92.4 million, a decrease of
$26.7 million, or 22.4%, sequentially
from the first quarter of 2015, and down $34.4 million, or 27.1%, from the second quarter
of 2014.
- Second-quarter net loss from continuing operations of
$20.6 million, or a loss of
$0.75 per diluted share, compared
with a net loss of $24.7 million, or
a loss of $0.97 per diluted share, in
the second quarter of 2014.
- Adjusted net loss from continuing operations, excluding special
items, of $18.5 million, or a loss of
$0.67 per diluted share, compared
with adjusted net loss of $11.6
million, or a loss of $0.45
per diluted share, in the second quarter of 2014.
- EBITDA from continuing operations of $10.1 million, an increase of $194,000, or 2.0%, from the second quarter of
2014.
- Adjusted EBITDA from continuing operations of $12.3 million, a decrease of $10.6 million, or 46.3% from the second quarter
of 2014.
- Total costs and expenses in the second quarter down
$38.8 million, or 28%, compared with
the second quarter of 2014. On a year-to-date basis, total costs
and expenses down by $53.0 million,
or 19.5%, compared with the first half of 2014.
- Year-to-date net cash provided by operating activities from
continuing operations of $42.3
million; year-to-date free cash flow of $35.0 million.
Mark D. Johnsrud, Chairman of the
Board and Chief Executive Officer, commented, "As expected, the
industry environment proved to be challenging throughout the second
quarter, with a further decline in overall drilling and completion
activities coupled with pricing concessions that impacted the full
quarter. The effect of the energy market downturn was more
pronounced in the Bakken, where we have most recently seen a 62%
drop in rig count from a year ago, compared with the overall
decline in North American land rigs of 53%.
"In view of the current industry conditions, our expectation is
for lower levels of drilling and completion activities to continue
into the second half of the year," Mr. Johnsrud said. "As such, we
will remain consistent in our strategy to further proactively
manage costs, drive operating efficiencies, preserve capital,
optimize asset utilization and deliver the best services to our
customers so that we can emerge a stronger company positioned for
growth in the recovery."
SECOND QUARTER 2015 RESULTS
Second-quarter 2015 revenue from continuing operations was
$92.4 million, a decrease of
approximately $34.4 million or 27.1%,
compared with revenue from continuing operations of $126.9 million in the second quarter of 2014.
Revenue was down 22.4% sequentially when compared to the 2015 first
quarter. The decline was primarily due to the substantial quarterly
decrease in overall water logistics, solids management and rental
activities in the Rocky Mountain Division, as well as a decrease in
water logistics and fresh water transfer services in the Southern
Division. These decreases were partly offset by increases in water
logistics and salt water recycling activities in the Northeast
Division.
Proactive cost-management initiatives across the organization
contributed to a 28% reduction in total costs and expenses in the
second quarter when compared with the second quarter of 2014.
During the second quarter, total costs and expenses decreased
by $38.8 million, primarily
attributable to $11.5 million in
lower payroll and related expenses with an associated 14.9%
reduction in total personnel, $6.2
million in fuel savings, $12.4
million in lower legal and environmental costs and
$8.7 million in all other savings. On
a year-to-date basis, the Company's cost-management efforts have
contributed to a 19.5% reduction in total costs and expenses,
including a 21.6% reduction in personnel.
Second-quarter 2015 net loss from continuing operations was
$20.6 million, or a loss of
$0.75 per diluted share, compared
with a loss of $24.7 million, or a
loss of $0.97 per diluted share, in
the second quarter of 2014. Adjusted net loss from continuing
operations, excluding special items, was $18.5 million for the quarter, or a loss of
$0.67 per diluted share, compared
with adjusted net loss from continuing operations of $11.6 million, or a loss of $0.45 per share in the second quarter of 2014.
Due to the valuation allowance against deferred tax assets, the
Company does not record tax benefits attributable to its pre-tax
loss.
Adjusted EBITDA from continuing operations for the second
quarter was $12.3 million, a 46.3%
year-over-year decrease when compared with $22.9 million in the second quarter of 2014.
Adjusted EBITDA margin for the second quarter was 13.3%, compared
with 18.0% in the second quarter of 2014. The decrease was due to
the lower overall base of fluids logistics, solids management and
rental revenue driven primarily by significant declines in the
Rocky Mountain Division, offset in part by overall cost savings
achieved in the second quarter. A reconciliation of excluded items
and adjusted EBITDA to the most directly comparable GAAP financial
measure can be found in the financial tables included with this
press release.
YEAR-TO-DATE RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2015 ("YTD")
YTD revenue from continuing operations was $211.5 million, a decrease of $43.3 million or 17.0%, compared with
$254.9 million for the same period in
2014. The difference was primarily a result of lower overall levels
of water logistics, solids management and rental activities in the
Rocky Mountain Division and a decline in water logistics and fresh
water transfer services in the Southern Division. These decreases
were partly offset by increases in water logistics and salt water
recycling activities in the Northeast Division.
YTD net loss from continuing operations was $32.6 million, or a loss of $1.18 per diluted share, compared with a loss of
$36.6 million, or a loss of
$1.45 per diluted share, for the same
period in 2014. Excluding special items, YTD adjusted net
loss from continuing operations was $29.8
million, or a loss of $1.08
per diluted share, compared with adjusted net loss from continuing
operations of $20.7 million, or a
loss of $0.82 per share in 2014.
YTD adjusted EBITDA from continuing operations was $31.0 million, a 25.8% decrease when compared
with the same period in 2014. Adjusted EBITDA margin for the 2015
YTD period was 14.6%, compared with 16.4% in 2014. The decrease was
due primarily to the lower overall base of water logistics, solids
management and rental revenue, offset in part by cost savings
achieved in the first half of the year.
CASH FLOW AND LIQUIDITY
Net cash provided by operating activities from continuing
operations through June 30, 2015 was
$42.3 million. Year-to-date net cash
capital expenditures for continuing operations were $7.4 million, and related primarily to targeted
investments in the Terrafficient solids recycling facility and
other transportation-related equipment in the Rocky Mountain
Division. The Company's disciplined capital spending and measured
cost controls generated $35.0 million
in free cash flow during the six-month period.
As of June 30, 2015, total debt
outstanding, excluding $0.5 million
of discounts and premiums, was $524.0
million, consisting of $400.0
million of 2018 Notes, $101.8
million outstanding under the revolving credit facility, and
$22.2 million in capital leases and
notes. Total liquidity at June 30,
2015 was $63.8 million,
including $34.6 million cash and
$29.2 million of net availability
under the Company's credit facility.
DIVISION SUMMARY
Three Months Ended
June 30, 2015
|
Rocky
Mountain
|
|
Northeast
|
|
Southern
|
|
Corporate
|
|
Total
|
Revenue
|
|
$
47,601
|
|
$ 27,411
|
|
$ 17,415
|
|
$
-
|
|
$92,427
|
Operating income
(loss)
|
|
1,371
|
|
295
|
|
(2,468)
|
|
(6,767)
|
|
(7,569)
|
Operating Margin %
|
|
2.9%
|
|
1.1%
|
|
(14.2%)
|
|
NA
|
|
(8.2%)
|
Adjusted
EBITDA
|
|
10,764
|
|
4,667
|
|
1,939
|
|
(5,087)
|
|
12,283
|
Adjusted EBITDA Margin %
|
|
22.6%
|
|
17.0%
|
|
11.1%
|
|
NA
|
|
13.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2014
|
Rocky
Mountain
|
|
Northeast
|
|
Southern
|
|
Corporate
|
|
Total
|
Revenue
|
|
$
77,479
|
|
$ 22,484
|
|
$ 26,899
|
|
$
-
|
|
$126,862
|
Operating income
(loss)
|
|
9,958
|
|
(4,264)
|
|
(6,875)
|
|
(10,739)
|
|
(11,920)
|
Operating Margin %
|
|
12.9%
|
|
(19.0%)
|
|
(25.6%)
|
|
NA
|
|
(9.4%)
|
Adjusted
EBITDA
|
|
22,997
|
|
2,000
|
|
2,367
|
|
(4,475)
|
|
22,889
|
Adjusted EBITDA Margin %
|
|
29.7%
|
|
8.9%
|
|
8.8%
|
|
NA
|
|
18.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2015
|
|
Rocky
Mountain
|
|
Northeast
|
|
Southern
|
|
Corporate
|
|
Total
|
Revenue
|
|
$
117,011
|
|
$ 54,724
|
|
$ 39,804
|
|
$
-
|
|
$211,539
|
Operating income
(loss)
|
|
11,563
|
|
197
|
|
(5,482)
|
|
(13,599)
|
|
(7,321)
|
Operating Margin %
|
|
9.9%
|
|
0.4%
|
|
(13.8%)
|
|
NA
|
|
(3.5%)
|
Adjusted
EBITDA
|
|
29,118
|
|
8,446
|
|
4,243
|
|
(10,818)
|
|
30,989
|
Adjusted EBITDA Margin %
|
|
24.9%
|
|
15.4%
|
|
10.7%
|
|
NA
|
|
14.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2014
|
|
Rocky
Mountain
|
|
Northeast
|
|
Southern
|
|
Corporate
|
|
Total
|
Revenue
|
|
$
159,385
|
|
$ 41,659
|
|
$ 53,832
|
|
$
-
|
|
$254,876
|
Operating income
(loss)
|
|
18,753
|
|
(7,311)
|
|
(9,109)
|
|
(19,324)
|
|
(16,991)
|
Operating Margin %
|
|
11.8%
|
|
(17.5%)
|
|
(16.9%)
|
|
NA
|
|
(6.7%)
|
Adjusted
EBITDA
|
|
44,728
|
|
3,513
|
|
3,908
|
|
(10,361)
|
|
41,788
|
Adjusted EBITDA Margin %
|
|
28.1%
|
|
8.4%
|
|
7.3%
|
|
NA
|
|
16.4%
|
Rocky Mountain Division (Bakken)
In the Rocky Mountain Division, second-quarter revenue was
$47.6 million, a decrease of 38.6%
when compared with the second quarter of 2014. The decrease was
related to an accelerated decline in drilling and completion
activities, which significantly reduced second-quarter demand for
water logistics, solids management and equipment rentals.
Additionally, the full-quarter impact of pricing concessions drove
lower revenue in the second quarter. On a year-to-date basis, Rocky
Mountain Division revenue was $117.0
million, a decrease of 26.6%, when compared with YTD revenue
of $159.4 million for the same period
in 2014.
Second-quarter adjusted EBITDA for the Rocky Mountain Division
was $10.8 million, a 53.2% decrease
compared with adjusted EBITDA of $23.0
million in the second quarter of 2014. Second-quarter
adjusted EBITDA margin was 22.6%, compared with an adjusted EBITDA
margin of 29.7% in the second quarter of 2014. On a YTD basis,
adjusted EBITDA for the Rocky Mountain Division was $29.1 million with a margin of 24.9%, compared
with adjusted EBITDA of $44.7 million
and a margin of 28.1% in 2014. Margin declines were primarily due
to the substantial reduction in revenue from drilling and
completion activities, offset in part by the impact of
cost-management initiatives.
Northeast Division (Marcellus, Utica)
In the Northeast Division, second-quarter revenue was
$27.4 million, an increase of 21.9%
compared with revenue of $22.5
million in the second quarter of 2014. The year-over-year
increase was driven by higher overall water logistics and salt
water disposal activities, primarily related to newer customers in
the Utica and South Marcellus regions. On a YTD basis, Northeast
Division revenue was $54.7 million,
an increase of 31.4%, when compared with YTD revenue of
$41.7 million in the same period of
2014.
Second-quarter adjusted EBITDA for the Northeast Division was
$4.7 million, a 133.4% increase
compared with adjusted EBITDA of $2.0
million in the second quarter of 2014. Second-quarter
adjusted EBITDA margin was 17.0%, compared with adjusted EBITDA
margin of 8.9% in the second quarter of 2014. On a YTD basis,
adjusted EBITDA for the Northeast Division was $8.4 million, resulting in a margin of 15.4%,
compared with $3.5 million and a
margin of 8.4% in 2014. Margin improvements were primarily due to a
higher overall revenue base combined with the impact of
cost-management initiatives.
Southern Division (Haynesville, Eagle Ford, Mississippian,
Permian)
In the Southern Division, second-quarter revenue was
$17.4 million, a 35.3% decrease
compared with revenue of $26.9
million in the second quarter of 2014. The difference was
primarily related to the overall decline in drilling and completion
activities throughout the region, which drove reduced demand for
water logistics services. Haynesville Pipeline revenue was up
slightly on a sequential basis when compared with the first quarter
of 2015; however, this was offset by sequential decreases in
disposal revenue in both the Haynesville and the Eagle Ford
regions. On a year-to-date basis, Southern Division revenue was
$39.8 million, a decrease of 26.1%
when compared with YTD revenue of $53.8
million in the same period of 2014.
Second-quarter adjusted EBITDA for the Southern Division was
$1.9 million, an 18.1% year-over-year
decrease compared with adjusted EBITDA of $2.4 million in the second quarter of 2014.
Adjusted EBITDA margin in the Southern Division increased 230 basis
points to 11.1% when compared with an adjusted EBITDA margin of
8.8% in the second quarter of 2014. On a YTD basis, adjusted EBITDA
was $4.2 million with a margin of
10.7%, compared with $3.9 million and
a margin of 7.3% for the corresponding period in 2014. Margin
improvements were primarily due to the impact of cost-savings
initiatives.
Conference Call & Webcast
The Company will host a conference call and webcast to discuss
second quarter 2015 results at 12:00 p.m.
ET, 9:00 a.m. PT on
Monday, August 10, 2015. To
participate, please dial +1-877-407-0784 (US) or +1-201-689-8560
(International) and reference conference ID 13613594. The call will
be webcast live, and a slide presentation will accompany the call.
To access the webcast, go to
http://public.viavid.com/index.php?id=115157.
An audio replay of the call will be available approximately one
hour following the conclusion of the call. The audio replay can be
accessed telephonically through August 17,
2015 by dialing +1-877-870-5176 (US) or +1-858-384-5517
(International) and entering access code 13613594. A replay of the
webcast and accompanying slides will be available by accessing the
"Investors" section of the Company's web site 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 the energy market. Nuverra focuses on the delivery,
collection, treatment, recycling, and disposal of restricted
solids, water, wastewater, 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. Find additional information about Nuverra on the
Company's website, http://www.nuverra.com, and in documents filed
with the U.S. Securities and Exchange Commission (SEC) at
http://www.sec.gov.
Forward-Looking Statements
The information contained herein includes certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. These forward-looking statements may
include 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 acquisitions, divestitures, financings, business growth
and expansion opportunities, availability of capital, ability to
access capital markets, cost-savings initiatives, expected outcome
of litigation and other statements that are not historical
facts. Actual results may differ materially from results
expressed or implied by these forward-looking statements. All
forward-looking statements involve risks and uncertainties,
including, 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; 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; current and projected
future uncertainties in commodities markets, including low oil
and/or natural gas prices; changes in customer drilling and
completion activities and capital expenditure plans; shifts in
production in shale areas where we operate and/or shale areas where
we currently do not have operations; control of costs and expenses,
including uncertainty regarding the ability to successfully
implement cost-savings initiatives; and the competitive and
regulatory environment. Additional risks and uncertainties are
disclosed from time to time in the Company's filings with the SEC,
including the Annual Report on Form 10-K for the fiscal year ended
December 31, 2014, as well as
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Nuverra Environmental Solutions, Inc.
Liz Merritt, VP-Investor Relations
& Communications
480-878-7452
ir@nuverra.com
- Tables to Follow –
NUVERRA
ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Non-rental
revenue
|
|
$ 85,530
|
|
$ 107,299
|
|
$ 192,540
|
|
$ 217,143
|
Rental
revenue
|
|
6,897
|
|
19,563
|
|
18,999
|
|
37,733
|
Total
revenue
|
|
92,427
|
|
126,862
|
|
211,539
|
|
254,876
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
Direct
operating expenses
|
|
71,574
|
|
94,955
|
|
159,573
|
|
190,334
|
General
and administrative expenses
|
|
9,697
|
|
22,457
|
|
22,397
|
|
39,252
|
Depreciation and amortization
|
|
18,296
|
|
21,370
|
|
35,778
|
|
42,281
|
Other,
net
|
|
429
|
|
-
|
|
1,112
|
|
-
|
Total costs and expenses
|
|
99,996
|
|
138,782
|
|
218,860
|
|
271,867
|
Operating
loss
|
|
(7,569)
|
|
(11,920)
|
|
(7,321)
|
|
(16,991)
|
Interest expense,
net
|
|
(12,452)
|
|
(12,969)
|
|
(25,040)
|
|
(25,019)
|
Other income,
net
|
|
400
|
|
472
|
|
721
|
|
52
|
Loss on
extinguishment of debt
|
|
(1,011)
|
|
-
|
|
(1,011)
|
|
(3,177)
|
Loss
from continuing operations before income taxes
|
|
(20,632)
|
|
(24,417)
|
|
(32,651)
|
|
(45,135)
|
Income tax (expense)
benefit
|
|
(15)
|
|
(305)
|
|
9
|
|
8,499
|
Loss
from continuing operations
|
|
(20,647)
|
|
(24,722)
|
|
(32,642)
|
|
(36,636)
|
(Loss) income from
discontinued operations, net of income taxes
|
|
(2,089)
|
|
1,453
|
|
(1,168)
|
|
1,912
|
Net loss
attributable to common stockholders
|
|
$(22,736)
|
|
$ (23,269)
|
|
$ (33,810)
|
|
$ (34,724)
|
|
|
|
|
|
|
|
|
|
Net loss per common
share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
and diluted loss from continuing operations
|
|
$ (0.75)
|
|
$ (0.97)
|
|
$ (1.18)
|
|
$ (1.45)
|
Basic
and diluted (loss) income from discontinued operations
|
|
(0.08)
|
|
0.06
|
|
(0.04)
|
|
0.08
|
Net loss
per basic and diluted share
|
|
$ (0.83)
|
|
$ (0.91)
|
|
$ (1.22)
|
|
$ (1.37)
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding used in computing net loss per basic and diluted
common share
|
|
27,679
|
|
25,524
|
|
27,546
|
|
25,273
|
NUVERRA
ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
|
|
June
30,
|
|
December
31,
|
|
2015
|
|
2014
|
Assets
|
(Unaudited)
|
|
(Note 1)
|
Cash and cash
equivalents
|
$ 34,634
|
|
$
13,367
|
Restricted
cash
|
4,250
|
|
114
|
Accounts receivable,
net
|
61,302
|
|
108,813
|
Inventories
|
3,252
|
|
4,413
|
Prepaid expenses and
other receivables
|
8,892
|
|
4,147
|
Deferred income
taxes
|
2,686
|
|
3,179
|
Other current
assets
|
165
|
|
173
|
Current assets held
for sale
|
1,972
|
|
20,466
|
Total current assets
|
117,153
|
|
154,672
|
Property, plant and
equipment, net
|
449,829
|
|
475,982
|
Equity
investments
|
3,786
|
|
3,814
|
Intangibles,
net
|
18,375
|
|
19,757
|
Goodwill
|
104,721
|
|
104,721
|
Other
assets
|
14,328
|
|
17,688
|
Long-term assets held
for sale
|
-
|
|
94,938
|
Total
assets
|
$ 708,192
|
|
$
871,572
|
Liabilities and
Equity
|
|
|
|
Accounts
payable
|
$ 12,856
|
|
$
18,859
|
Accrued
liabilities
|
33,717
|
|
43,395
|
Current portion of
contingent consideration
|
8,783
|
|
9,274
|
Current portion of
long-term debt
|
7,321
|
|
4,863
|
Financing obligation
to acquire non-controlling interest
|
-
|
|
11,000
|
Current liabilities
of discontinued operations
|
-
|
|
8,802
|
Total
current liabilities
|
62,677
|
|
96,193
|
Deferred income
taxes
|
2,956
|
|
3,448
|
Long-term portion of
debt
|
516,183
|
|
592,455
|
Long-term portion of
contingent consideration
|
-
|
|
550
|
Other long-term
liabilities
|
3,812
|
|
3,874
|
Long-term liabilities
of discontinued operations
|
-
|
|
22,105
|
Total
liabilities
|
585,628
|
|
718,625
|
Commitments and
contingencies
|
|
|
|
Common
stock
|
30
|
|
29
|
Additional paid-in
capital
|
1,369,098
|
|
1,365,537
|
Treasury
stock
|
(19,786)
|
|
(19,651)
|
Accumulated
deficit
|
(1,226,778)
|
|
(1,192,968)
|
Total equity of
Nuverra Environmental Solutions, Inc.
|
122,564
|
|
152,947
|
Total liabilities and
equity
|
$ 708,192
|
|
$
871,572
|
|
|
|
|
Note 1: The condensed
consolidated balance sheet at December 31, 2014 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, 2014.
|
|
|
|
|
|
|
|
|
|
|
|
NUVERRA
ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2015
|
|
2014
|
Cash flows from
operating activities:
|
|
|
|
|
Net loss
|
|
$(33,810)
|
|
$(34,724)
|
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities:
|
|
|
|
|
Income from discontinued operations, net of income taxes
|
|
(906)
|
|
(1,912)
|
Loss on the sale of TFI
|
|
2,074
|
|
-
|
Depreciation and amortization of intangible assets
|
|
35,778
|
|
42,281
|
Amortization of deferred financing costs and debt discounts,
net
|
|
2,438
|
|
1,718
|
Stock-based compensation
|
|
1,516
|
|
1,408
|
Gain on disposal of property, plant and equipment
|
|
(1,312)
|
|
(2,248)
|
Bad debt expense
|
|
(208)
|
|
1,014
|
Loss on extinguishment of
debt
|
|
1,011
|
|
3,177
|
Deferred income taxes
|
|
1
|
|
(6,965)
|
Other, net
|
|
316
|
|
1,147
|
Changes in operating assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
47,719
|
|
(10,857)
|
Prepaid
expenses and other receivables
|
|
(5,273)
|
|
6,024
|
Accounts
payable and accrued liabilities
|
|
(8,113)
|
|
(3,429)
|
Other
assets and liabilities, net
|
|
1,105
|
|
(515)
|
Net cash
provided by (used in) operating activities from continuing
operations
|
|
42,336
|
|
(3,881)
|
Net cash
(used in) provided by operating activities from discontinued
operations
|
|
(708)
|
|
2,880
|
Net cash
provided by (used in) operating activities
|
|
41,628
|
|
(1,001)
|
Cash flows from
investing activities:
|
|
|
|
|
Proceeds from the
sale of TFI
|
|
78,897
|
|
-
|
Proceeds from the
sale of property, plant and equipment
|
|
3,448
|
|
3,810
|
Purchases of
property, plant and equipment
|
|
(10,807)
|
|
(23,943)
|
Change in restricted
cash
|
|
(4,250)
|
|
-
|
Net cash provided by
(used in) investing activities from continuing
operations
|
|
67,288
|
|
(20,133)
|
Net cash used in
investing activities from discontinued operations
|
|
(181)
|
|
(2,262)
|
Net cash provided by
(used in) investing activities
|
|
67,107
|
|
(22,395)
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from
revolving credit facility
|
|
-
|
|
50,725
|
Payments on revolving
credit facility
|
|
(81,647)
|
|
(27,700)
|
Payments for deferred
financing costs
|
|
-
|
|
(734)
|
Payments on vehicle
financing and other financing activities
|
|
(7,765)
|
|
(3,713)
|
Net cash (used in)
provided by financing activities of continuing
operations
|
|
(89,412)
|
|
18,578
|
Net cash used in
financing activities of discontinued operations
|
|
(105)
|
|
-
|
Net cash (used in)
provided by financing activities
|
|
(89,517)
|
|
18,578
|
Net increase
(decrease) in cash and cash equivalents
|
|
19,218
|
|
(4,818)
|
Cash and cash
equivalents - beginning of period
|
|
15,416
|
|
9,212
|
Cash and cash
equivalents - end of period
|
|
34,634
|
|
4,394
|
Less: cash and cash
equivalents of discontinued operations - end of period
|
|
-
|
|
1,047
|
Cash and cash
equivalents of continuing operations - end of period
|
|
$ 34,634
|
|
$ 3,347
|
|
|
|
|
|
|
|
|
NUVERRA
ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES
|
UNAUDITED NON-GAAP
RECONCILIATIONS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
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 results, and evaluates overall performance 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 charges, which may or may not be non-recurring, 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. These non-GAAP financial measures are not
substitutes for measures of performance or liquidity calculated in
accordance with GAAP and may not necessarily be indicative of the
Company's liquidity or ability to fund cash needs. Not all
companies calculate non-GAAP financial measures in the same manner,
and our presentation may not be comparable to the presentations of
other companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Loss from Continuing Operations to EBITDA, Adjusted EBITDA from
Continuing Operations and Total Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Loss from continuing
operations
|
$ (20,647)
|
|
$ (24,722)
|
|
$ (32,642)
|
|
$ (36,636)
|
Depreciation of
property, plant and equipment
|
17,588
|
|
16,974
|
|
34,359
|
|
33,581
|
Amortization of
intangible assets
|
708
|
|
4,396
|
|
1,419
|
|
8,700
|
Interest expense,
net
|
12,452
|
|
12,969
|
|
25,040
|
|
25,019
|
Income tax expense
(benefit)
|
15
|
|
305
|
|
(9)
|
|
(8,499)
|
EBITDA
|
10,116
|
|
9,922
|
|
28,167
|
|
22,165
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Transaction-related
costs, including earnout adjustments, net
|
177
|
|
-
|
|
(132)
|
|
513
|
Stock-based
compensation
|
727
|
|
1,115
|
|
1,516
|
|
1,408
|
Legal and
environmental costs, net
|
397
|
|
12,782
|
|
404
|
|
14,638
|
Restructuring, exit
and other costs
|
513
|
|
63
|
|
1,335
|
|
63
|
Loss on
extinguishment of debt
|
1,011
|
|
-
|
|
1,011
|
|
3,177
|
Integration,
severance and rebranding costs
|
-
|
|
-
|
|
-
|
|
2,072
|
Gain on disposal of
assets
|
(658)
|
|
(993)
|
|
(1,312)
|
|
(2,248)
|
Adjusted EBITDA from
continuing operations
|
12,283
|
|
22,889
|
|
30,989
|
|
41,788
|
Adjusted EBITDA from
discontinued operations
|
7
|
|
3,016
|
|
1,197
|
|
6,114
|
Total Adjusted
EBITDA
|
$ 12,290
|
|
$ 25,905
|
|
$ 32,186
|
|
$ 47,902
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
(Loss) Income from Discontinued Operations to EBITDA from
Discontinued Operations and Adjusted EBITDA from Discontinued
Operations:
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months
Ended June 30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
(Loss) income from
discontinued operations
|
$ (2,089)
|
|
$ 1,453
|
|
$ (1,168)
|
|
$ 1,912
|
Income tax (benefit)
expense
|
-
|
|
(31)
|
|
265
|
|
1,665
|
EBITDA from
discontinued operations
|
(2,089)
|
|
1,422
|
|
(903)
|
|
3,577
|
Adjustments:
|
|
|
|
|
|
|
|
Transaction-related
costs
|
22
|
|
907
|
|
26
|
|
1,931
|
Legal and
environmental costs
|
-
|
|
733
|
|
-
|
|
733
|
Loss (gain) on
disposal of assets
|
2,074
|
|
(46)
|
|
2,074
|
|
(127)
|
Adjusted EBITDA from
discontinued operations
|
$
7
|
|
$ 3,016
|
|
$ 1,197
|
|
$ 6,114
|
|
|
|
|
|
|
|
|
|
|
|
NUVERRA
ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES
|
UNAUDITED NON-GAAP
RECONCILIATIONS (continued)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
QTD Segment Performance to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
Rocky
Mountain
|
|
Northeast
|
|
Southern
|
|
Corporate
|
|
Total
|
Three Months Ended
June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
47,601
|
|
$ 27,411
|
|
$ 17,415
|
|
$
-
|
|
$ 92,427
|
Direct operating
expenses
|
|
36,107
|
|
21,996
|
|
13,471
|
|
-
|
|
71,574
|
General and
administrative expenses
|
|
1,322
|
|
1,021
|
|
1,219
|
|
6,135
|
|
9,697
|
Depreciation and
amortization
|
|
8,801
|
|
4,060
|
|
5,195
|
|
240
|
|
18,296
|
Operating (loss)
income
|
|
1,371
|
|
295
|
|
(2,468)
|
|
(6,767)
|
|
(7,569)
|
Operating margin %
|
|
2.9%
|
|
1.1%
|
|
(14.2%)
|
|
NA
|
|
(8.2%)
|
Income (loss) from
continuing operations before income taxes
|
|
1,805
|
|
(200)
|
|
(2,628)
|
|
(19,609)
|
|
(20,632)
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
1,805
|
|
(206)
|
|
(2,632)
|
|
(19,614)
|
|
(20,647)
|
Depreciation and
amortization
|
|
8,801
|
|
4,060
|
|
5,195
|
|
240
|
|
18,296
|
Interest expense,
net
|
|
144
|
|
436
|
|
41
|
|
11,831
|
|
12,452
|
Income tax
expense
|
|
-
|
|
6
|
|
4
|
|
5
|
|
15
|
EBITDA
|
|
$
10,750
|
|
$ 4,296
|
|
$ 2,608
|
|
$ (7,538)
|
|
$ 10,116
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments,
net
|
|
14
|
|
371
|
|
(669)
|
|
2,451
|
|
2,167
|
Adjusted EBITDA from
continuing operations
|
|
$
10,764
|
|
$ 4,667
|
|
$ 1,939
|
|
$ (5,087)
|
|
$ 12,283
|
Adjusted EBITDA margin %
|
|
22.6%
|
|
17.0%
|
|
11.1%
|
|
NA
|
|
13.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2014
|
|
Rocky
Mountain
|
|
Northeast
|
|
Southern
|
|
Corporate
|
|
Total
|
Revenue
|
|
$
77,479
|
|
$ 22,484
|
|
$ 26,899
|
|
$
-
|
|
$ 126,862
|
Direct operating
expenses
|
|
53,252
|
|
18,433
|
|
23,270
|
|
-
|
|
94,955
|
General and
administrative expenses
|
|
1,504
|
|
4,360
|
|
6,018
|
|
10,575
|
|
22,457
|
Depreciation and
amortization
|
|
12,765
|
|
3,955
|
|
4,486
|
|
164
|
|
21,370
|
Operating (loss)
income
|
|
9,958
|
|
(4,264)
|
|
(6,875)
|
|
(10,739)
|
|
(11,920)
|
Operating margin %
|
|
12.9%
|
|
(19.0%)
|
|
(25.6%)
|
|
NA
|
|
(9.4%)
|
Income (loss) from
continuing operations before income taxes
|
|
9,904
|
|
(2,656)
|
|
(8,739)
|
|
(22,926)
|
|
(24,417)
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
9,904
|
|
(2,656)
|
|
(8,739)
|
|
(23,231)
|
|
(24,722)
|
Depreciation and
amortization
|
|
12,765
|
|
3,955
|
|
4,486
|
|
164
|
|
21,370
|
Interest expense,
net
|
|
185
|
|
430
|
|
167
|
|
12,187
|
|
12,969
|
Income tax
expense
|
|
-
|
|
-
|
|
-
|
|
305
|
|
305
|
EBITDA
|
|
$
22,854
|
|
$ 1,729
|
|
$ (4,086)
|
|
$ (10,575)
|
|
$ 9,922
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments,
net
|
|
143
|
|
271
|
|
6,453
|
|
6,100
|
|
12,967
|
Adjusted EBITDA from
continuing operations
|
|
$
22,997
|
|
$ 2,000
|
|
$ 2,367
|
|
$ (4,475)
|
|
$ 22,889
|
Adjusted EBITDA margin %
|
|
29.7%
|
|
8.9%
|
|
8.8%
|
|
NA
|
|
18.0%
|
|
|
|
|
|
|
|
|
|
|
|
NUVERRA
ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES
|
UNAUDITED NON-GAAP
RECONCILIATIONS (continued)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
YTD Segment Performance to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rocky
Mountain
|
|
Northeast
|
|
Southern
|
|
Corporate
|
|
Total
|
Six Months Ended
June 30, 2015
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
117,011
|
|
$ 54,724
|
|
$ 39,804
|
|
$
-
|
|
$ 211,539
|
Direct operating
expenses
|
|
84,532
|
|
43,492
|
|
31,549
|
|
-
|
|
159,573
|
General and
administrative expenses
|
|
3,378
|
|
2,925
|
|
3,297
|
|
12,797
|
|
22,397
|
Depreciation and
amortization
|
|
17,538
|
|
7,987
|
|
9,843
|
|
410
|
|
35,778
|
Operating income
(loss)
|
|
11,563
|
|
197
|
|
(5,482)
|
|
(13,599)
|
|
(7,321)
|
Operating margin %
|
|
9.9%
|
|
0.4%
|
|
(13.8%)
|
|
NA
|
|
(3.5%)
|
Income (loss) from
continuing operations before income taxes
|
|
11,902
|
|
(187)
|
|
(5,563)
|
|
(38,803)
|
|
(32,651)
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
11,902
|
|
(193)
|
|
(5,567)
|
|
(38,784)
|
|
(32,642)
|
Depreciation and
amortization
|
|
17,538
|
|
7,987
|
|
9,843
|
|
410
|
|
35,778
|
Interest expense,
net
|
|
253
|
|
500
|
|
94
|
|
24,193
|
|
25,040
|
Income tax expense
(benefit)
|
|
-
|
|
6
|
|
4
|
|
(19)
|
|
(9)
|
EBITDA
|
|
$
29,693
|
|
$ 8,300
|
|
$ 4,374
|
|
$ (14,200)
|
|
$ 28,167
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments,
net
|
|
(575)
|
|
146
|
|
(131)
|
|
3,382
|
|
2,822
|
Adjusted EBITDA from
continuing operations
|
|
$
29,118
|
|
$ 8,446
|
|
$ 4,243
|
|
$ (10,818)
|
|
$ 30,989
|
Adjusted EBITDA margin %
|
|
24.9%
|
|
15.4%
|
|
10.7%
|
|
NA
|
|
14.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2014
|
|
Rocky
Mountain
|
|
Northeast
|
|
Southern
|
|
Corporate
|
|
Total
|
Revenue
|
|
$
159,385
|
|
$ 41,659
|
|
$ 53,832
|
|
$
-
|
|
$ 254,876
|
Direct operating
expenses
|
|
110,599
|
|
34,858
|
|
44,877
|
|
-
|
|
190,334
|
General and
administrative expenses
|
|
4,599
|
|
6,284
|
|
9,371
|
|
18,998
|
|
39,252
|
Depreciation and
amortization
|
|
25,434
|
|
7,828
|
|
8,692
|
|
327
|
|
42,281
|
Operating income
(loss)
|
|
18,753
|
|
(7,311)
|
|
(9,109)
|
|
(19,324)
|
|
(16,991)
|
Operating margin %
|
|
11.8%
|
|
(17.5%)
|
|
(16.9%)
|
|
NA
|
|
(6.7%)
|
Income (loss) from
continuing operations before income taxes
|
|
18,587
|
|
(5,890)
|
|
(11,408)
|
|
(46,424)
|
|
(45,135)
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
18,587
|
|
(5,890)
|
|
(11,408)
|
|
(37,925)
|
|
(36,636)
|
Depreciation and
amortization
|
|
25,434
|
|
7,828
|
|
8,692
|
|
327
|
|
42,281
|
Interest expense,
net
|
|
321
|
|
503
|
|
272
|
|
23,923
|
|
25,019
|
Income tax
benefit
|
|
-
|
|
-
|
|
-
|
|
(8,499)
|
|
(8,499)
|
EBITDA
|
|
$
44,342
|
|
$ 2,441
|
|
$ (2,444)
|
|
$ (22,174)
|
|
$ 22,165
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments,
net
|
|
386
|
|
1,072
|
|
6,352
|
|
11,813
|
|
19,623
|
Adjusted EBITDA from
continuing operations
|
|
$
44,728
|
|
$ 3,513
|
|
$ 3,908
|
|
$ (10,361)
|
|
$ 41,788
|
Adjusted EBITDA margin %
|
|
28.1%
|
|
8.4%
|
|
7.3%
|
|
NA
|
|
16.4%
|
|
|
|
|
|
|
NUVERRA
ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES
|
UNAUDITED NON-GAAP
RECONCILIATIONS (continued)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Special Items to Adjusted Net Loss to EBITDA from Continuing
Operations
|
|
|
Three Months Ended
June 30, 2015
|
|
As
Reported
|
|
Special
Items
|
|
As
Adjusted
|
Revenue
|
$ 92,427
|
|
$
-
|
|
$ 92,427
|
Direct operating
expenses
|
71,574
|
|
658
|
[A]
|
72,232
|
General and
administrative expenses
|
9,697
|
|
(1,208)
|
[B]
|
8,489
|
Operating
loss
|
(7,569)
|
|
979
|
[C]
|
(6,590)
|
Loss from continuing
operations
|
(20,647)
|
|
2,169
|
[D]
|
(18,478)
|
|
|
|
|
|
|
Basic and diluted
loss from continuing operations
|
$
(0.75)
|
|
|
|
$
(0.67)
|
|
|
|
|
|
|
Loss from continuing
operations
|
$ (20,647)
|
|
|
|
$ (18,478)
|
Depreciation and
amortization
|
18,296
|
|
|
|
18,296
|
Interest expense,
net
|
12,452
|
|
|
|
12,452
|
Income tax
expense
|
15
|
|
|
|
13
|
EBITDA and Adjusted
EBITDA from continuing operations
|
$ 10,116
|
|
|
|
$ 12,283
|
|
Description of
2015 Special Items:
|
[A]
|
Special items include
a gain on sale related to the disposal of certain transportation
related assets.
|
[B]
|
Primarily
attributable to stock-based compensation, non-routine litigation
expenses and certain refinancing costs associated with our ABL
Facility.
|
[C]
|
Primarily includes
the aforementioned adjustments, and a charge of approximately $0.4
million associated with Company's restructuring initiative and
other exit related costs from certain shale basins.
|
[D]
|
Primarily includes
the aforementioned adjustments, along with a charge of $1.0 million
in connection with a write-off of a portion of the unamortized
deferred financing costs associated with our ABL Facility and a
charge related to a prior acquisition earnout reserve of $0.2
million. Additionally, the Company's effective tax rate for the
three months ended June 30, 2015 was zero percent and has been
applied to the special items accordingly.
|
|
|
|
|
|
Three Months Ended
June 30, 2014
|
|
As
Reported
|
|
Special
Items
|
|
As
Adjusted
|
Revenue
|
$ 126,862
|
|
$
-
|
|
$ 126,862
|
Direct operating
expenses
|
94,955
|
|
68
|
[E]
|
95,023
|
General and
administrative expenses
|
22,457
|
|
(13,037)
|
[F]
|
9,420
|
Operating (loss)
income
|
(11,920)
|
|
12,968
|
|
1,048
|
Loss from continuing
operations
|
(24,722)
|
|
13,124
|
[G]
|
(11,598)
|
|
|
|
|
|
|
Basic and diluted
loss from continuing operations
|
$
(0.97)
|
|
|
|
$
(0.45)
|
|
|
|
|
|
|
Loss from continuing
operations
|
$ (24,722)
|
|
|
|
$ (11,598)
|
Depreciation and
amortization
|
21,370
|
|
|
|
21,370
|
Interest expense,
net
|
12,969
|
|
|
|
12,969
|
Income tax
expense
|
305
|
|
|
|
148
|
EBITDA and Adjusted
EBITDA from continuing operations
|
$
9,922
|
|
|
|
$ 22,889
|
Description of
2014 Special Items:
|
[E]
|
Special items include
a gain on sale related to the disposal of certain transportation
related assets, offset by certain environmental costs.
|
[F]
|
Primarily
attributable to legal costs incurred as a result of settlement
litigation associated with our Texas Cases, and Shareholder
litigation.
|
[G]
|
Primarily includes
the aforementioned adjustments. Additionally, the Company's
effective tax rate for the three months ended June 30, 2014 was
1.2% and has been applied to the special items
accordingly.
|
|
|
|
|
|
|
|
|
|
|
NUVERRA
ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES
|
|
|
UNAUDITED NON-GAAP
RECONCILIATIONS (continued)
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Special Items to Adjusted Net Loss to EBITDA from Continuing
Operations
|
|
|
|
|
|
|
Six Months Ended
June 30, 2015
|
|
|
|
|
As
Reported
|
|
Special
Items
|
|
As
Adjusted
|
|
|
|
Revenue
|
$ 211,539
|
|
$
-
|
|
$ 211,539
|
|
|
|
Direct operating
expenses
|
159,573
|
|
1,312
|
[A]
|
160,885
|
|
|
|
General and
administrative expenses
|
22,397
|
|
(2,143)
|
[B]
|
20,254
|
|
|
|
Operating
loss
|
(7,321)
|
|
1,943
|
[C]
|
(5,378)
|
|
|
|
Loss from continuing
operations
|
(32,642)
|
|
2,822
|
[D]
|
(29,820)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
loss from continuing operations
|
$
(1.18)
|
|
|
|
$
(1.08)
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
$ (32,642)
|
|
|
|
$ (29,820)
|
|
|
|
Depreciation and
amortization
|
35,778
|
|
|
|
35,778
|
|
|
|
Interest expense,
net
|
25,040
|
|
|
|
25,040
|
|
|
|
Income tax
benefit
|
(9)
|
|
|
|
(9)
|
|
|
|
EBITDA and Adjusted
EBITDA from continuing operations
|
$ 28,167
|
|
|
|
$ 30,989
|
|
|
|
Description of
2015 Special Items:
|
|
|
|
|
|
|
|
|
[A]
|
Special items include
a gain on sale related to the disposal of certain transportation
related assets.
|
[B]
|
Primarily
attributable to stock-based compensation, non-routine litigation
expenses and certain refinancing costs associated with our ABL
Facility.
|
[C]
|
Primarily includes
the aforementioned adjustments, and a charge of approximately $1.1
million associated with Company's restructuring initiative and
other exit related costs from certain shale basins.
|
|
|
|
|
|
|
|
|
[D]
|
Primarily includes
the aforementioned adjustments, along with a charge of $1.0 million
in connection with a write-off of a portion of the unamortized
deferred financing costs associated with our ABL Facility and a net
reduction related to a prior acquisition earnout reserve of $0.1
million. Additionally, the Company's effective tax rate for the six
months ended June 30, 2015 was zero percent and has been applied to
the special items accordingly.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2014
|
|
|
|
|
|
As
Reported
|
|
Special
Items
|
|
As
Adjusted
|
|
|
|
|
Revenue
|
$ 254,876
|
|
$
-
|
|
$ 254,876
|
|
|
|
|
Direct operating
expenses
|
190,334
|
|
1,325
|
[E]
|
191,659
|
|
|
|
|
General and
administrative expenses
|
39,252
|
|
(17,356)
|
[F]
|
21,896
|
|
|
|
|
Operating
loss
|
(16,991)
|
|
16,031
|
|
(960)
|
|
|
|
|
Loss from continuing
operations
|
(36,636)
|
|
15,934
|
[G]
|
(20,702)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
loss from continuing operations
|
$ (1.45)
|
|
|
|
$ (0.82)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
$ (36,636)
|
|
|
|
$ (20,702)
|
|
|
|
|
Depreciation and
amortization
|
42,281
|
|
|
|
42,281
|
|
|
|
|
Interest expense,
net
|
25,019
|
|
|
|
25,019
|
|
|
|
|
Income tax
benefit
|
(8,499)
|
|
|
|
(4,810)
|
|
|
|
|
EBITDA and Adjusted
EBITDA from continuing operations
|
$ 22,165
|
|
|
|
$ 41,788
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description of
2014 Special Items:
|
|
|
|
|
|
|
|
|
[E]
|
Special items include
a gain on sale related to the disposal of certain transportation
related assets.
|
[F]
|
Primarily
attributable to costs incurred as a result of our accounting and
administrative integration efforts, stock-based compensation, and
certain legal expenses associated with our Texas Cases and
Shareholder litigation.
|
[G]
|
Primarily includes
the aforementioned adjustments, along with a charge of $3.2 million
in connection with a write-off of a portion of the unamortized
deferred financing costs associated with our Amended Revolving
Credit Facility, and a charge of $0.4 million associated with a
prior acquisition earnout reserve. Additionally, the Company's
effective tax rate for the six months ended June 30, 2014 was
-18.8% and has been applied to the special items
accordingly.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NUVERRA
ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES
|
UNAUDITED NON-GAAP
RECONCILIATIONS (continued)
|
(In
thousands)
|
|
|
|
|
|
|
Reconciliation of
Free Cash Flow from Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
2015
|
|
2014
|
|
Net cash provided by
(used in) operating activities from continuing
operations
|
|
$ 42,336
|
|
$ (3,881)
|
|
Less: net cash
capital expenditures, [1]
|
|
(7,359)
|
|
(20,133)
|
|
Free Cash
Flow
|
|
$ 34,977
|
|
$(24,014)
|
|
[1] Purchases of
property, plant and equipment net of proceeds received
|
|
|
|
|
|
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SOURCE Nuverra Environmental Solutions, Inc.