FORT WORTH, Texas, March 31, 2017 /PRNewswire/ -- Basic Energy
Services, Inc. (NYSE: BAS) ("Basic" or the "Company") today
announced its financial and operating results for the fourth
quarter and year ended December 31,
2016. This press release updates and corrects certain items
previously reported in the Company's press release dated
March 23, 2017. This press
release does not change Adjusted EBITDA previously reported, and
corrects matters relating to (i) capital lease accounting as
applied in accordance with fresh start accounting and (ii) certain
other reorganization items discussed and reflected below.
Basic emerged from its Chapter 11 bankruptcy pursuant to a
prepackaged plan of reorganization on December 23, 2016. Upon emergence from the
Chapter 11 bankruptcy, the Company adopted fresh start accounting,
which results in Basic becoming a new entity for accounting and
financial reporting purposes upon emergence. Basic evaluated
events between December 23 and December 31,
2016 and concluded that the use of an accounting convenience
date of December 31, 2016 did not
have a material impact on Basic's results of operations or
financial position. As such, the application of fresh start
accounting was reflected in its consolidated balance sheet as of
December 31, 2016 and all fresh start
accounting adjustments were included in its consolidated statement
of operations for the year ended December
31, 2016. References to the Basic "Predecessor" relate
to the financial position of Basic the results of operations
through December 31, 2016; and
references to the "Successor" relate to the financial position of
Basic on December 31, 2016. Due
to these adjustments, the financial statements as of December 31, 2016 are not comparable with
information provided for prior periods.
For the fourth quarter of 2016, the Basic Predecessor reported
net income of $141.9 million, or
$3.32 per basic share and
$3.15 per diluted share. Excluding
the special items as noted below, fourth quarter net loss was
$60.2 million, or a loss of
$1.41 per basic and diluted
share.
|
Three months ended
December 31, 2016
|
|
(in
millions)
|
|
EPS
|
Predecessor
Special Items (adjusted for tax)
|
(Unaudited)
|
Net
income, as reported
|
$
|
141.9
|
|
|
$
|
3.32
|
|
Restructuring costs
|
7.4
|
|
|
0.17
|
|
Reorganization items, net
|
(189.1)
|
|
|
(4.43)
|
|
Vesting
of equity compensation
|
13.5
|
|
|
0.32
|
|
Retention expense
|
2.4
|
|
|
0.06
|
|
Valuation allowance on federal deferred tax assets
|
(36.3)
|
|
|
(0.85)
|
|
Adjusted
net loss
|
$
|
(60.2)
|
|
|
$
|
(1.41)
|
|
Net income for the fourth quarter and the net loss for the year
ended December 31, 2016 on a
Predecessor basis includes the net loss on fresh start adjustments
of $220.5 million and the net gain on
restructuring of $540.3
million.
FOURTH QUARTER 2016 HIGHLIGHTS
Fourth quarter 2016 revenues increased 10% sequentially to
$155.5 million from $141.6 million in the third quarter of 2016, as
improved levels of activity driven by higher oil prices drove our
customers to complete more wells and initiate previously deferred
maintenance work on existing well bores throughout our footprint.
Fourth quarter 2016 revenues decreased 3% from $161.0 million in the fourth quarter of 2015.
For the third quarter of 2016, Basic reported a net loss of
$92.1 million, or a loss of
$2.16 per basic and diluted share,
which included a tax-effected, non-cash charge of $5.9 million, or $0.14 per basic and diluted share pertaining to
professional and other fees associated with the Company's Chapter
11 bankruptcy filing and a non-cash charge of $32.8 million, or $0.77 per share, related to a valuation allowance
on federal deferred tax assets. Excluding the impact of these
special items, Basic reported a net loss of $53.4 million, or a loss of $1.25 per basic and diluted share for the third
quarter of 2016. In the fourth quarter of 2015, Basic reported a
net loss of $55.2 million, or a loss
of $1.36 per basic and diluted
share.
"We are pleased to have emerged late last year from of a
restructuring and recapitalization process with a solid financial
foundation from which we expect to continue to strengthen our
business.," said Roe Patterson, Chief Executive Officer. "We are
proud of our employees for their hard work and dedication making
this a successful process. With steadfast assistance from our
customers, vendors and various other stakeholders we were able to
navigate the restructuring process smoothly and timely. While no
restructuring process is ever a desired outcome for any company, we
now have a healthier financial position that will allow us to
continue providing our customers with industry-leading expertise
and safe, efficient services.
"Without a doubt, 2016 was one of the most challenging years in
our industry's history. U.S. land activity continued to decline
during most of the year and our revenues fell 32% after having
fallen 46% during 2015. However, our fourth quarter results
benefitted from the improvement in oil prices and the pick-up in
activity, especially in the Permian Basin. Our customers took
advantage of this improved environment to restart well maintenance
activity and to begin a steady pace of completion activity for new
wells.
"Despite the pick-up in activity, fourth quarter margins
declined across all product lines because of normal seasonal
impacts, reactivation costs of stacked equipment as well as
increased headcount and input costs. This situation continued
during the first quarter led by the increase in labor rates and the
annual reset of payroll taxes. We have been able to pass most
of these cost increases through increased pricing, but there is
always a degree of lag. This margin pressure has begun to dissipate
here at the end of the first quarter. We expect that to continue in
the second quarter as pricing and utilization continues to improve.
We expect to exit the first quarter with all of our frac horsepower
unstacked, positive EBITDA for March and full first quarter
revenues that are 13-15% higher sequentially.
"Looking forward, we expect a gradual improvement in pricing and
utilization for the remainder of 2017. Customer guidance on capital
expenditures looks promising, with gradual improvements in oily
basins for all of our service segments. While we are cautiously
optimistic about near term activity levels, we expect a measured
and even-paced recovery. Headwinds, such as finding experienced
labor, still exist and could delay projects. In addition, all
customers are keeping a close eye on fluctuating oil prices and
have shown the ability to swiftly respond to large
corrections."
Adjusted EBITDA declined to ($5.2
million), or (3%) of revenues, for the fourth quarter of
2016 from ($4.7 million), or (3%) of
revenues, in the third quarter of 2016. In the fourth quarter
of 2015, Basic generated Adjusted EBITDA of ($7.5) million, or (5%) of revenues.
Adjusted EBITDA is defined as net income before interest, taxes,
depreciation and amortization ("EBITDA"), goodwill impairment,
retention expenses, restructuring costs, reorganization items,
vesting of equity compensation, the loss on customer audit
settlements, and the net gain or loss from the disposal of
assets. EBITDA and Adjusted EBITDA, which are not measures
determined in accordance with United
States generally accepted accounting principles ("GAAP"),
are defined and reconciled in note 2 under the accompanying
financial tables.
FULL YEAR 2016 HIGHLIGHTS
Revenues for Basic Predecessor during 2016 declined 32% to
$547.5 million from $805.6 million for 2015.
In 2016, Basic's Predecessor reported a net loss of $123.4 million, or $2.94 per basic and diluted share, compared to a
net loss of $241.7 million, or a loss
of $5.97 per basic and diluted share
in 2015. This includes several special items as noted below.
|
Twelve months
ended December 31, 2016
|
|
(in
millions)
|
|
EPS
|
Predecessor
Special Items (adjusted for tax)
|
(Unaudited)
|
Net
loss, as reported
|
$
|
(123.4)
|
|
|
$
|
(2.94)
|
|
Early
extinguishment of deferred debt costs
|
1.3
|
|
|
0.03
|
|
Restructuring expense
|
13.7
|
|
|
0.33
|
|
Reorganization items, net
|
(175.0)
|
|
|
(4.17)
|
|
Vesting
of equity compensation
|
12.6
|
|
|
0.30
|
|
Retention expense
|
4.1
|
|
|
0.10
|
|
Valuation allowance on federal deferred tax assets
|
48.3
|
|
|
1.15
|
|
Adjusted
net loss
|
$
|
(218.4)
|
|
|
$
|
(5.20)
|
|
This adjusted net loss includes the net loss on fresh start
adjustments and gain on restructuring as explained above.
Excluding special items in 2015, Basic generated an adjusted net
loss of $186.7 million, or a loss of
$4.58 per basic and diluted
share.
Adjusted EBITDA for 2016 decreased to ($29.2) million, or (5%) of revenues from
$24.3 million, or 3% of revenue, for
2015. Adjusted EBITDA excludes the special items discussed
above for both 2016 and 2015. Adjusted EBITDA is reconciled in note
2 under the accompanying financial tables.
Business Segment Results
Completion and Remedial Services
Completion and remedial services revenue increased 20% to
$59.2 million in the fourth quarter
of 2016 from $49.4 million in the
prior quarter. The sequential improvement in revenue for the
segment was led by higher activity levels, particularly in the
Permian Basin. However, rate traction remained limited due to
continued high levels of competition in all basins in the Company's
footprint. In the fourth quarter of 2015, this segment
generated $58.5 million in
revenue.
At December 31, 2016, Basic had
approximately 444,000 of total hydraulic horsepower ("HHP"),
essentially flat compared to both the end of the previous quarter
and as of December 31, 2015. Weighted
average HHP for the fourth quarter of 2016 was 444,000, equal to
the third quarter of 2016. This includes 358,000 of frac
HHP. As of December 31, 2016,
116,595 HHP was stacked, with 55,650 HHP unstacked during the
fourth quarter of 2016. The stacked HHP as of December 31 includes 101,000 of stacked frac
HHP.
Segment profit in the fourth quarter of 2016 decreased to
$8.4 million compared to $9.1 million in the prior quarter. Segment
margin for the fourth quarter of 2016 decreased to 14% compared to
18% during the previous quarter, driven by a combination of
factors, including seasonal holiday and weather impacts,
reactivation costs of stacked HHP of approximately 100 basis
points, and higher proppant costs. During the fourth quarter
of 2015, segment profit was $8.5
million, or 15% of segment revenue.
Fluid Services
Fluid services revenue in the fourth quarter of 2016 increased
3% to $48.8 million from $47.2 million in the prior quarter. Segment
revenues increased driven by a pick-up in activity in trucking
operations and disposal utilization mainly in the Permian Basin and
the Eagle Ford. During the fourth quarter of 2015, this segment
generated $58.5 million in
revenue.
The weighted average number of fluid services trucks decreased
2% to 944 during the fourth quarter of 2016, compared to 962 during
the third quarter of 2016 and declined 6% compared to 1,002 during
the fourth quarter of 2015. Truck hours of 503,200 during the
fourth quarter of 2016 represented an improvement of 1% from
499,900 during the third quarter of 2016 and a decrease of 10%
compared to 557,000 in the same period in 2015.
The average revenue per fluid service truck increased 5% to
$51,600 during the fourth quarter
from $49,100 in the third quarter of
2016, as disposal utilization and hot oiling revenues rose with
increased trucking activity. In the comparable quarter of 2015,
average revenue per fluid truck was $58,300.
Segment profit in the fourth quarter of 2016 decreased to
$6.3 million from $7.9 million in the prior quarter. Segment profit
margin decreased 380 basis points to 13% due to the impact of
holiday periods, rising labor costs and inclement weather in the
latter part of the quarter. Segment profit in the same period in
2015 was $12.5 million, or 21% of
segment revenue.
Well Servicing
Well servicing revenues increased 4% to $45.1 million during the fourth quarter of 2016
compared to $43.2 million in the
prior quarter due to an increase in rig hours and utilization
driven by increased workover and plugging activity throughout our
geographic footprint. Well servicing revenue was $41.5 million in the fourth quarter of 2015.
Revenues from the Taylor manufacturing operations were $1.3 million compared to $380,000 in the third quarter of 2016 and
$2.6 million in the fourth quarter of
2015.
At December 31, 2016, the well
servicing rig count was 421, the same as of the end of the prior
quarter and at December 31, 2015. Rig
hours increased 7% to 146,200 in the fourth quarter of 2016,
compared to 136,600 in the previous quarter and were up 22% from
119,900 hours in the comparable quarter of last year. Rig
utilization was 49% in the fourth quarter of 2016, up from 45% in
the prior quarter and from 39% in the fourth quarter of 2015.
Excluding revenues associated with the Taylor manufacturing
operations, revenue per well servicing rig hour was $300 in the fourth quarter of 2016, down 4%
compared to $313 in the previous
quarter and down 7% from $324
reported in the fourth quarter of 2015. The lower rig rate per hour
reflects the competitive structure of the Permian Basin where most
of the increased activity is taking place.
Segment profit in the fourth quarter of 2016 decreased 24% to
$6.1 million compared to $8.1 million in the prior quarter and increased
57% from $3.9 million during the same
period in 2015. Segment profit margin fell to 14% in the fourth
quarter of 2016 from 19% in the prior quarter. Despite the
increased rig hours and utilization, margins declined due to a
combination of factors, including weather and holiday impacts,
higher labor costs and a continued highly competitive pricing
environment. In the fourth quarter of 2015, segment profit was 9%
of segment revenue. Segment profit from the Taylor manufacturing
operations was a loss of $9,000 in
the fourth quarter of 2016 compared to positive margin of
$18,000 in the third quarter of
2016.
Contract Drilling
Contract drilling revenue increased 31% to $2.4 million during the fourth quarter of 2016
compared to $1.8 million the prior
quarter. During the fourth quarter of 2015, this segment generated
$2.6 million in revenue. Basic
marketed 12 drilling rigs during the fourth quarter of 2016, the
same number of rigs as in the previous quarter as well as in the
fourth quarter of 2015. While only one rig was active at the
beginning of the fourth quarter of 2016, a second rig was
contracted in the middle of the quarter and remained active
throughout the remainder of the quarter. Revenue per drilling day
in the fourth quarter of 2016 decreased to $17,500 compared to $20,100 in the previous quarter, but up from
$16,500 in the fourth quarter of
2015.
Rig operating days during the fourth quarter increased to 139
compared to 92 in the third quarter of 2016, resulting in a rig
utilization of 13% and 8% during the fourth and third quarters of
2016, respectively. In the comparable period in 2015, rig operating
days were 155, producing a utilization of 14%.
Segment loss in the fourth quarter of 2016 was $40,000 compared to a profit of $164,000 in the prior quarter and a profit of
$69,000 in the fourth quarter of
2015. Segment margin for the fourth quarter of 2016 was (2%)
of segment revenues compared to 9% in the prior quarter, due to
costs associated with redeploying the second rig in the
quarter. For the fourth quarter of 2015, segment margin was
3%.
G&A Expense
As reported General and administrative ("G&A") expense was
$48.6 million for the fourth quarter
of 2016. Net of retention expense and the vesting of
predecessor equity compensation discussed above, G&A expense in
the fourth quarter of 2016 declined 8% to $27.5 million on an operating basis, or 18% of
revenue from $30.1 million, or 21% of
revenue, in the prior quarter. G&A expense in the fourth
quarter of 2015 was $32.6 million, or
20% of revenue. The 16% decrease in G&A expense from last
year's fourth quarter was primarily the result of headcount
reductions, lower incentive compensation and other cost savings
initiatives implemented during 2016.
Tax Benefit
Basic had no tax expense for the fourth quarter of 2016,
compared to tax expense of $1,000 in
the third quarter of 2016. Excluding the impact of valuation
allowance as discussed above, Basic's operating effective tax
benefit for the fourth quarter of 2016 was $29.4 million compared to an operating effective
tax benefit of $28.3 million in the
third quarter of 2016. The fourth quarter of 2016 represents an
operating effective tax benefit rate of 28%, compared to 35% in the
prior quarter. The adjusted effective tax benefit of $29.8 million in the fourth quarter of 2015
translated into an effective tax benefit rate of 35%.
Cash and Total Liquidity
On December 31, 2016, Basic
Successor had cash and cash equivalents of approximately
$98.9 million, up from $34.3 million at September
30, 2016 and $46.7 million on
December 31, 2015. This amount
includes proceeds from the $125
million rights offering on December
23, 2016, less payments of DIP financing and Chapter 11
restructuring costs.
At December 31, 2016, total
liquidity was approximately $122.3
million, which included $23.4
million of availability under Basic's amended and restated
$75 million revolving credit
facility.
Capital Expenditures
Total capital expenditures during 2016 were approximately
$38.3 million (including capital
leases of $5.6 million), comprised of
$5.0 million for expansion projects,
$29.6 million for sustaining and
replacement projects and $3.7 million
for other projects. Expansion capital spending included
$2.9 million for the completion and
remedial services segment, $1.1
million for the fluid services segment, and $904,000 for the well servicing
segment. Other capital expenditures were mainly for
facilities and IT infrastructure.
Basic currently anticipates 2017 maintenance capital
expenditures to be $70.0 million,
including $30.0 million of capital
leases. In addition, we have committed expansion capital
expenditures of $45 million in
2017. This includes $43.0
million for completion and remedial services and
$2.0 million for the well servicing
segment.
Basic will host a conference call to discuss its fourth quarter
2016 results on Friday, March 24,
2017, at 9:00 a.m. Eastern
Time (8:00 a.m.
Central). To access the call, please dial (412) 902-0003 and
ask for the "Basic Energy Services" call at least 10 minutes prior
to the start time. The conference call will also be broadcast
live via the Internet and can be accessed through the investor
relations section of Basic's corporate website,
www.basicenergyservices.com.
A telephonic replay of the conference call will be available
until April 7, 2017 and may be
accessed by calling (201) 612-7415 and using pass code
13654038#. A webcast archive will be available at
www.basicenergyservices.com shortly after the call and will be
accessible for approximately 30 days.
About Basic Energy Services
Basic Energy Services provides well site services essential to
maintaining production from the oil and gas wells within its
operating area. The Company employs more than 3,800 employees
in more than 100 service points throughout the major oil and gas
producing regions in Texas,
Louisiana, Oklahoma, New
Mexico, Arkansas,
Kansas, and the Rocky Mountain and
Appalachian regions. Additional information on Basic Energy
Services is available on the Company's website at
www.basicenergyservices.com.
Safe Harbor Statement
This release includes forward-looking statements and
projections, made in reliance on the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Basic has
made every reasonable effort to ensure that the information and
assumptions on which these statements and projections are based are
current, reasonable, and complete. However, a variety of
factors could cause actual results to differ materially from the
projections, anticipated results or other expectations expressed in
this release, including (i) changes in demand for our services and
any related material impact on our pricing and utilizations rates,
(ii) Basic's ability to execute, manage and integrate acquisitions
successfully, (iii) changes in our expenses, including labor or
fuel costs and financing costs, (iv) continued volatility of oil or
natural gas prices, and any related changes in expenditures by our
customers, and (v) competition within our industry.
Additional important risk factors that could cause actual results
to differ materially from expectations are disclosed in Item 1A of
Basic's Form 10-K for the year ended December 31, 2015 and subsequent Form 10-Qs filed
with the SEC. While Basic makes these statements and
projections in good faith, neither Basic nor its management can
guarantee that anticipated future results will be achieved.
Basic assumes no obligation to publicly update or revise any
forward-looking statements made herein or any other forward-looking
statements made by Basic, whether as a result of new information,
future events, or otherwise.
-Tables to Follow-
|
|
|
|
|
|
|
|
|
|
|
|
Basic Energy
Services, Inc.
|
Consolidated
Statements of Operations and Other Financial Data
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
Three months ended
December 31,
|
|
Twelve months
ended December 31,
|
|
2016
|
2015
|
|
2016
|
2015
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
Income Statement
Data:
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
Completion and
remedial services
|
$
|
59,218
|
|
$
|
58,479
|
|
|
$
|
184,567
|
|
$
|
307,550
|
|
Fluid
services
|
48,806
|
|
58,460
|
|
|
191,725
|
|
258,597
|
|
Well
servicing
|
45,075
|
|
41,544
|
|
|
163,966
|
|
217,245
|
|
Contract
drilling
|
2,427
|
|
2,552
|
|
|
7,239
|
|
22,207
|
|
Total
revenues
|
155,526
|
|
161,035
|
|
|
547,497
|
|
805,599
|
|
Expenses:
|
|
|
|
|
|
Completion and
remedial services
|
50,820
|
|
49,983
|
|
|
158,762
|
|
245,069
|
|
Fluid
services
|
42,485
|
|
45,938
|
|
|
161,535
|
|
196,155
|
|
Well
servicing
|
38,929
|
|
37,638
|
|
|
140,274
|
|
184,952
|
|
Contract
drilling
|
2,467
|
|
2,477
|
|
|
7,079
|
|
16,680
|
|
General and
administrative (1)
|
48,627
|
|
32,603
|
|
|
135,331
|
|
143,458
|
|
Depreciation and
amortization
|
54,064
|
|
59,983
|
|
|
218,205
|
|
241,471
|
|
Restructuring
costs
|
10,273
|
|
—
|
|
|
20,743
|
|
—
|
|
(Gain) loss on
disposal of assets
|
881
|
|
483
|
|
|
1,014
|
|
1,602
|
|
Goodwill
impairment
|
—
|
|
—
|
|
|
646
|
|
81,877
|
|
Total
expenses
|
248,546
|
|
229,105
|
|
|
843,589
|
|
1,111,264
|
|
Operating
loss
|
(93,020)
|
|
(68,070)
|
|
|
(296,092)
|
|
(305,665)
|
|
Other income
(expense):
|
|
|
|
|
|
Reorganization items,
net
|
264,306
|
|
-
|
|
|
264,306
|
|
-
|
|
Interest
expense
|
(29,437)
|
|
(17,018)
|
|
|
(96,625)
|
|
(67,964)
|
|
Interest
income
|
3
|
|
9
|
|
|
26
|
|
26
|
|
Bargain purchase gain
on acquisition
|
—
|
|
—
|
|
|
662
|
|
—
|
|
Other
income
|
89
|
|
79
|
|
|
467
|
|
528
|
|
Loss before income
taxes
|
141,941
|
|
(85,000)
|
|
|
(127,256)
|
|
(373,075)
|
|
Income tax benefit
(expense)
|
—
|
|
29,816
|
|
|
3,883
|
|
131,330
|
|
Net loss
|
$
|
141,941
|
|
$
|
(55,184)
|
|
|
$
|
(123,373)
|
|
$
|
(241,745)
|
|
Loss per share of
common stock:
|
|
|
|
|
|
Basic
|
$
|
3.32
|
|
$
|
(1.36)
|
|
|
$
|
(2.94)
|
|
$
|
(5.97)
|
|
Diluted
|
$
|
3.15
|
|
$
|
(1.36)
|
|
|
$
|
(2.94)
|
|
$
|
(5.97)
|
|
|
|
|
|
|
|
Other Financial
Data:
|
|
|
|
|
|
EBITDA (2)
|
$
|
225,442
|
|
$
|
(8,008)
|
|
|
$
|
187,574
|
|
$
|
(63,666)
|
|
Adjusted EBITDA
(2)
|
(5,234)
|
|
(7,525)
|
|
|
(29,153)
|
|
24,313
|
|
Capital
expenditures:
|
|
|
|
|
|
Acquisitions, net of
cash acquired
|
—
|
|
—
|
|
|
—
|
|
7,914
|
|
Property and
equipment
|
—
|
|
10,283
|
|
|
—
|
|
38,340
|
|
|
|
|
|
|
|
|
As
of
|
|
|
|
|
December
31,
|
|
|
|
|
2016
|
2015
|
|
|
|
|
Successor
|
Predecessor
|
|
|
|
|
(Unaudited)
|
|
|
|
Balance Sheet
Data:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
98,875
|
|
$
|
46,732
|
|
|
|
|
Net property and
equipment
|
488,848
|
|
846,290
|
|
|
|
|
Total
assets
|
768,160
|
|
1,161,369
|
|
|
|
|
Total long-term
debt
|
184,752
|
|
838,368
|
|
|
|
|
Total stockholders'
equity
|
414,408
|
|
106,338
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31,
|
|
|
Twelve months
ended December 31,
|
|
2016
|
|
2015
|
|
|
2016
|
|
2015
|
Segment
Data:
|
(Unaudited)
|
|
|
(Unaudited)
|
Completion and
Remedial Services
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Profits as a
percent of revenue
|
|
14%
|
|
|
15%
|
|
|
|
14%
|
|
|
20%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fluid
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of fluid service trucks
|
|
944
|
|
|
1,002
|
|
|
|
966
|
|
|
1,018
|
Truck hours
(000's)
|
|
503.2
|
|
|
557.0
|
|
|
|
1,999.0
|
|
|
2,291.2
|
Revenue per fluid
services truck (000's)
|
$
|
52
|
|
$
|
58
|
|
|
$
|
199
|
|
$
|
254
|
Segment profits per
fluid services truck (000's)
|
$
|
7
|
|
$
|
12
|
|
|
$
|
31
|
|
$
|
61
|
Segment profits as a
percent of revenue
|
|
13%
|
|
|
21%
|
|
|
|
16%
|
|
|
24%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Well
Servicing
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of rigs
|
|
421
|
|
|
421
|
|
|
|
421
|
|
|
421
|
Rig hours
(000's)
|
|
146.2
|
|
|
120.0
|
|
|
|
504.9
|
|
|
592.7
|
Rig utilization
rate
|
|
49%
|
|
|
39%
|
|
|
|
42%
|
|
|
49%
|
Revenue per rig hour,
excluding manufacturing
|
$
|
300
|
|
$
|
324
|
|
|
$
|
310
|
|
$
|
348
|
Well servicing rig
profit per rig hour
|
$
|
43
|
|
$
|
33
|
|
|
$
|
47
|
|
$
|
54
|
Segment profits as a
percent of revenue
|
|
14%
|
|
|
9%
|
|
|
|
14%
|
|
|
15%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact
Drilling
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of rigs
|
|
12
|
|
|
12
|
|
|
|
12
|
|
|
12
|
Rig operating
days
|
|
139
|
|
|
155
|
|
|
|
413
|
|
|
1361
|
Revenue per
day
|
$
|
17,500
|
|
$
|
16,500
|
|
|
$
|
17,500
|
|
$
|
16,300
|
Drilling rig profit
per day
|
$
|
800
|
|
$
|
400
|
|
|
$
|
800
|
|
$
|
4,000
|
Segment profits as a
percent of revenue
|
|
(2)%
|
|
|
3%
|
|
|
|
2%
|
|
|
25%
|
(1)
|
Includes
approximately $10,189,000 and $3,632,000 of non-cash compensation
expense for the three months ended December 31, 2016 and 2015,
respectively, and $18,041,000 and $16,922,000 for the twelve months
ended December 31, 2016 and 2015 respectively.
|
|
|
(2)
|
This earnings release
contains references to the non-GAAP financial measure of earnings
(net income) before interest, taxes, depreciation and amortization,
or "EBITDA." This earnings release also contains references
to the non-GAAP financial measure of earnings (net income) before
interest, taxes, depreciation, amortization, loss on customer audit
settlements, and the gain or loss on disposal of assets or
"Adjusted EBITDA." EBITDA and Adjusted EBITDA should not be
considered in isolation or as a substitute for operating income,
net income or loss, cash flows provided by operating, investing and
financing activities, or other income or cash flow statement data
prepared in accordance with GAAP. However, Basic believes
EBITDA and Adjusted EBITDA are useful supplemental financial
measures used by its management and directors and by external users
of its financial statements, such as investors, to
assess:
|
|
|
•
|
The financial
performance of its assets without regard to financing methods,
capital structure or historical cost basis;
|
•
|
The ability of its
assets to generate cash sufficient to pay interest on its
indebtedness; and
|
•
|
Its operating
performance and return on invested capital as compared to those of
other companies in the well servicing industry, without regard to
financing methods and capital structure.
|
|
|
EBITDA and Adjusted
EBITDA each have limitations as an analytical tool and should not
be considered an alternative to net income, operating income, cash
flow from operating activities or any other measure of financial
performance or liquidity presented in accordance with GAAP. EBITDA
and Adjusted EBITDA exclude some, but not all, items that affect
net income and operating income, and these measures may vary among
other companies. Limitations to using EBITDA as an analytical tool
include:
|
|
|
•
|
EBITDA does not
reflect its current or future requirements for capital expenditures
or capital commitments;
|
•
|
EBITDA does not
reflect changes in, or cash requirements necessary, to service
interest or principal payments on, its debt;
|
•
|
EBITDA does not
reflect income taxes;
|
•
|
Although depreciation
and amortization are non-cash charges, the assets being depreciated
and amortized will often have to be replaced in the future, and
EBITDA does not reflect any cash requirements for such
replacements; and
|
•
|
Other companies in
its industry may calculate EBITDA differently than Basic does,
limiting its usefulness as a comparative measure.
|
|
|
In addition to each
of the limitations with respect to EBITDA noted above, the
limitations to using Adjusted EBITDA as an analytical tool
include:
|
|
•
|
Adjusted EBITDA does
not reflect Basic's goodwill impairment;
|
•
|
Adjusted EBITDA does
not reflect Basic's gain or loss on disposal of assets;
|
•
|
Adjusted EBITDA does not reflect Basic's
retention expense;
|
•
|
Adjusted EBITDA does
not reflect Basic's restructuring costs;
|
•
|
Adjusted EBITDA does
not reflect Basic's reorganization items, net;
|
•
|
Adjusted EBITDA does
not reflect Basic's vesting of equity compensation;
|
•
|
Adjusted EBITDA does
not reflect Basic's loss on customer audit settlements;
and
|
•
|
Other companies in
our industry may calculate Adjusted EBITDA differently than Basic
does, limiting its usefulness as a comparative measure.
|
The following table presents a reconciliation of net loss to
EBITDA, which is the most comparable GAAP performance measure, for
each of the periods indicated:
|
Three months ended
December 31,
|
|
Twelve months
ended December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Reconciliation of
Net Income (Loss) to EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
Net income /
(loss)
|
$
|
141,941
|
|
|
$
|
(55,184)
|
|
|
$
|
(123,373)
|
|
|
$
|
(241,745)
|
|
Income
taxes
|
|
—
|
|
|
|
(29,816)
|
|
|
|
(3,883)
|
|
|
|
(131,330)
|
|
Net
interest expense
|
|
29,437
|
|
|
|
17,009
|
|
|
|
96,625
|
|
|
|
67,938
|
|
Depreciation and amortization
|
|
54,064
|
|
|
|
59,983
|
|
|
|
218,205
|
|
|
|
241,471
|
|
EBITDA
|
$
|
225,442
|
|
|
$
|
(8,008)
|
|
|
$
|
187,574
|
|
|
$
|
(63,666)
|
|
The following table presents a reconciliation of net loss to
"Adjusted EBITDA," which means our EBITDA excluding the gain or
loss on disposal of assets, and loss on customer audit
settlements:
|
Three months ended
December 31,
|
|
Twelve months
ended December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Reconciliation of
Net Income (Loss) to Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
Net income /
(loss)
|
$
|
141,941
|
|
|
$
|
(55,184)
|
|
|
$
|
(123,373)
|
|
|
$
|
(241,745)
|
|
Income
taxes
|
|
—
|
|
|
|
(29,816)
|
|
|
|
(3,883)
|
|
|
|
(131,330)
|
|
Net
interest expense
|
|
29,437
|
|
|
|
17,009
|
|
|
|
96,625
|
|
|
|
67,938
|
|
Depreciation and amortization
|
|
54,064
|
|
|
|
59,983
|
|
|
|
218,205
|
|
|
|
241,471
|
|
Goodwill
Impairment
|
|
—
|
|
|
|
—
|
|
|
|
646
|
|
|
|
81,877
|
|
(Gain)
loss on disposal of assets
|
|
881
|
|
|
|
483
|
|
|
|
1,014
|
|
|
|
1,602
|
|
Retention expense
|
|
3,561
|
|
|
|
—
|
|
|
|
6,261
|
|
|
|
—
|
|
Restructuring costs
|
|
10,273
|
|
|
|
—
|
|
|
|
20,743
|
|
|
|
—
|
|
Reorganization items, net
|
|
(264,306)
|
|
|
|
—
|
|
|
|
(264,306)
|
|
|
|
—
|
|
Vesting
of equity compensation
|
|
18,915
|
|
|
|
—
|
|
|
|
18,915
|
|
|
|
—
|
|
Loss on
customer audit settlement
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,500
|
|
Adjusted
EBITDA
|
$
|
(5,234)
|
|
|
$
|
(7,525)
|
|
|
$
|
(29,153)
|
|
|
$
|
24,313
|
|
|
|
Contacts:
|
Alan
Krenek,
|
|
Chief Financial
Officer
|
|
Basic Energy
Services, Inc.
|
|
817-334-4100
|
|
|
|
Jack
Lascar
|
|
Dennard ▪ Lascar
Associates
|
|
713-529-6600
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/basic-energy-services-reports-updated-final-fourth-quarter-and-full-year-2016-results-300432860.html
SOURCE Basic Energy Services, Inc.