Mammoth Energy Services, Inc. ("Mammoth" or the "Company") (NASDAQ:
TUSK) today reported financial and operational results for the
three and nine months ended September 30, 2018.
Financial Highlights for the Third Quarter
2018:
Total revenue was $384.0 million for the three months ended
September 30, 2018, down 28% sequentially from $533.6 for the
three months ended June 30, 2018 and up 157% from $149.3
million for the three months ended September 30, 2017.
Net income for the three months ended September 30, 2018
was $69.5 million, or $1.54 on a fully diluted per share basis, a
$26.8 million increase from $42.7 million for the three months
ended June 30, 2018 and an improvement of $70.3 million from a
net loss of $0.8 million for the three months ended
September 30, 2017.
Adjusted EBITDA (as defined and reconciled below) was $183.6
million for the three months ended September 30, 2018, an
increase from $148.6 million for the three months ended
June 30, 2018 and from $28.0 million for the three months
ended September 30, 2017. Excluding the reversal of bad debt
provisions of $69.6 million, adjusted EBITDA was $114.0 million for
the three months ended September 30, 2018.
Arty Straehla, Mammoth's Chief Executive Officer, stated, "The
third quarter marked two full years as a public company and was a
record quarter on a net income basis. Over the past two years, we
have more than doubled the size of our oil field services business
and we have also created a large infrastructure organization that
has a bright future that should complement our diversified growth
for years to come. While the third quarter was challenging for oil
field services, we were pleased with the execution in our
infrastructure business. In addition, we finalized our amended and
restated $185 million five-year credit facility, which both
increases our liquidity and gives us the flexibility to react
quickly to identified opportunities. We continue our commitment to
a balanced stockholder return through the approval of a regular
quarterly dividend to be paid on November 15, 2018."
Pressure Pumping Services
Mammoth's pressure pumping division contributed revenues
(inclusive of inter-segment revenues) of $92.4 million on 1,594
stages for the three months ended September 30, 2018, a 9%
decrease from $101.4 million on 1,815 stages for the three months
ended June 30, 2018, and a 21% increase from $76.7 million on
1,617 stages for the three months ended September 30,
2017.
Infrastructure Services
Mammoth's infrastructure services segment contributed revenues
of $237.1 million for the three months ended September 30,
2018, a 34% decrease from $360.3 million for the three months ended
June 30, 2018 and a $223.6 million increase from $13.5 million
the three months ended September 30, 2017.
Transmission and distribution crews answered the call for mutual
aid following Hurricanes Florence and Michael and were deployed to
both the eastern seaboard and the gulf coast.
Natural Sand Proppant Services
Mammoth's natural sand proppant division contributed revenues
(inclusive of inter-segment revenues) of $37.0 million for the
three months ended September 30, 2018, a 30% decrease from
$52.8 million for the three months ended June 30, 2018 and up
13% from $32.7 million for the three months ended
September 30, 2017. The Company sold 598,438 tons of sand
during the three months ended September 30, 2018, a 23%
decrease from 777,850 during the three months ended June 30,
2018 and a 26% increase from 474,933 during the three months ended
September 30, 2017.
During the third quarter of 2018, the Company completed the
upgrade of certain equipment at its Piranha facility, which
increased Mammoth's total sand processing capacity to approximately
4.4 million tons per year. Due to market conditions, our Muskie
facility was temporarily idled during the third quarter of 2018 and
we expect this to lower our blended production costs.
Contract Land and Directional Drilling
Services
Mammoth's contract land and directional drilling services
division contributed revenues (inclusive of inter-segment revenues)
of $15.9 million for the three months ended September 30,
2018, a 7% decrease from $17.2 million for the three months ended
June 30, 2018, and a 17% increase from $13.6 million for the
three months ended September 30, 2017. The average drilling
day rate was $17,170, $17,229 and $14,800, respectively, for the
three months ended September 30, 2018, June 30, 2018 and
September 30, 2017.
Mammoth anticipates that it will operate, on average, four to
five rigs throughout 2018.
Other Services
Mammoth's other services, including coil tubing, pressure
control, flowback, cementing, acidizing, equipment rentals, crude
oil hauling, water transfer and remote accommodations, contributed
revenues (inclusive of inter-segment revenues) of $21.5 million for
the three months ended September 30, 2018, a 7% increase from
$20.2 million for the three months ended June 30, 2018, and a
24% increase from $17.4 million for the three months ended
September 30, 2017.
Selling, General and Administrative
Expenses
Selling, general and administrative ("SG&A") expenses were a
credit of $45.3 million for the three months ended
September 30, 2018, compared to $65.1 million for the three
months ended June 30, 2018, and $8.0 million for the three
months ended September 30, 2017.
Following is a breakout of SG&A expense (in thousands):
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2018 |
|
2017 |
|
Cash expenses: |
|
|
|
|
|
|
|
|
|
| Compensation and benefits |
$ |
14,864 |
|
|
$ |
3,577 |
|
|
$ |
10,978 |
|
|
$ |
33,541 |
|
|
$ |
8,958 |
|
| Professional services |
3,267 |
|
|
1,494 |
|
|
2,981 |
|
|
8,835 |
|
|
5,075 |
|
| Other(a) |
3,701 |
|
|
1,820 |
|
|
3,935 |
|
|
9,243 |
|
|
5,700 |
|
| Total cash SG&A expense |
21,832 |
|
|
6,891 |
|
|
17,894 |
|
|
51,619 |
|
|
19,733 |
|
|
Non-cash expenses: |
|
|
|
|
|
|
|
|
|
| Bad debt provision(b) |
(68,333 |
) |
|
103 |
|
|
28,263 |
|
|
(14,543 |
) |
|
78 |
|
| Equity based compensation(c) |
— |
|
|
— |
|
|
17,487 |
|
|
17,487 |
|
|
— |
|
| Stock based compensation |
1,177 |
|
|
1,028 |
|
|
1,483 |
|
|
3,751 |
|
|
2,648 |
|
| Total non-cash SG&A expense |
(67,156 |
) |
|
1,131 |
|
|
47,233 |
|
|
6,695 |
|
|
2,726 |
|
| Total SG&A expense |
$ |
(45,324 |
) |
|
$ |
8,022 |
|
|
$ |
65,127 |
|
|
$ |
58,314 |
|
|
$ |
22,459 |
|
a. Includes travel-related costs, IT expenses,
rent, utilities and other general and administrative-related
costs.b. During the three months ended
September 30, 2018, the Company received payment for amounts
previously reserved in 2017. As a result, during the three months
ended September 30, 2018, the Company reversed bad debt
expense of $16.0 million recognized in 2017 and $53.6 million
recognized in the first half of 2018. The Company expects to
receive payment for the 2018 amounts once the Company files its
2018 Puerto Rico tax return and pays any taxes due as calculated by
the return. The Company expects that the Puerto Rico 2018 tax
return will be filed in mid-2019.c. Represents
compensation expense for non-employee awards, which were issued and
are payable by certain affiliates of Wexford (the sponsor
level).
SG&A expenses, as a percentage of total revenue, were (12%)
for the three months ended September 30, 2018 compared to 12%
for the three months ended June 30, 2018 and 5% for the three
months ended September 30, 2017. Excluding bad debt and
non-employee non-cash equity compensation expenses, SG&A
expenses as a percentage of total revenue were 6% for the three
months ended September 30, 2018, compared to 4% for the three
months ended June 30, 2018 and 5% for the three months ended
September 30, 2017.
Liquidity
As of September 30, 2018, Mammoth had cash on hand totaling
$19.7 million and no borrowings outstanding under its revolving
credit facility. As of September 30, 2018, the Company had
approximately $162.5 million of available borrowing capacity under
its revolving credit facility, after giving effect to $6.7 million
of outstanding letters of credit, resulting in total liquidity of
approximately $182.2 million.
On October 19, 2018, Mammoth entered into an amended and
restated five-year asset backed revolving credit facility led by
PNC Capital Markets with a maximum revolving advance amount at
closing of $185 million and the potential to increase the facility
by up to an additional $165 million.
Capital Expenditures
The following table summarizes Mammoth's capital expenditures by
operating division for the periods indicated (in thousands):
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2018 |
|
2017 |
|
Pressure pumping services(a) |
$ |
5,630 |
|
|
$ |
19,581 |
|
|
$ |
8,233 |
|
|
$ |
21,729 |
|
|
$ |
72,983 |
|
|
Infrastructure services(b) |
21,737 |
|
|
8,055 |
|
|
40,778 |
|
|
78,293 |
|
|
12,013 |
|
|
Natural sand proppant services(c) |
3,145 |
|
|
4,928 |
|
|
6,958 |
|
|
15,803 |
|
|
7,898 |
|
|
Contract and directional drilling services(d) |
1,570 |
|
|
2,356 |
|
|
7,083 |
|
|
12,271 |
|
|
8,257 |
|
|
Other(e) |
8,663 |
|
|
777 |
|
|
9,959 |
|
|
21,434 |
|
|
1,122 |
|
|
Total capital expenditures |
$ |
40,745 |
|
|
$ |
35,697 |
|
|
$ |
73,011 |
|
|
$ |
149,530 |
|
|
$ |
102,273 |
|
a. Capital expenditures primarily for
pressure pumping equipment for the periods presented.b.
Capital expenditures primarily for trucks and
other equipment for the periods
presented.c. Capital expenditures primarily
for plant upgrades for the periods
presented.d. Capital expenditures primarily
for upgrades to our rig fleet and real estate purchases for the
periods presented.e. Capital expenditures
primarily for equipment for our rental and crude oil hauling
businesses for periods presented.
Explanatory Note Regarding Financial
Information
The financial information contained in this release should be
read in conjunction with the financial information contained in
Mammoth’s Annual Report filed on Form 10-K with the Securities and
Exchange Commission ("SEC") on February 28, 2018, Quarterly Reports
on Form 10-Q, Current Reports on Form 8-K and other filings.
The Company's Chief Executive Officer and Chief Financial
Officer comprise the Company's Chief Operating Decision Maker
function ("CODM"). Segment information is prepared on the same
basis that the CODM manages the segments, evaluates the segment
financial statements and makes key operating and resource
utilization decisions. Segment evaluation is determined on a
quantitative basis based on a function of operating income (loss)
as well as a qualitative basis, such as nature of the product and
service offerings and types of customers.
On June 5, 2017, the Company completed the acquisition of (1)
Sturgeon Acquisitions, LLC and its wholly owned subsidiaries Taylor
Frac LLC, Taylor RE, LLC and South River, LLC (collectively,
"Sturgeon"), (2) Stingray Energy Services and (3) Stingray
Cementing (together with Stingray Energy Services, the “Stingray
Acquisition”) in exchange for the issuance by Mammoth of an
aggregate of 7,000,000 shares of its common stock.
Prior to the acquisition, the Company and Sturgeon were under
common control and it is required under accounting principles
generally accepted in the Unites States of America ("GAAP") to
account for this common control acquisition in a manner similar to
the pooling of interest method of accounting. Therefore, the
Company's historical financial information has been recast to
combine Sturgeon with the Company as if the acquisition had been
completed at commencement of Sturgeon's operations on September 13,
2014.
Conference Call Information
Mammoth will host a conference call on Thursday, November 1,
2018 at 10:00 a.m. CDT (11:00 am EDT) to discuss its third quarter
2018 financial and operational results. The telephone number to
access the conference call is 844-265-1561 in the U.S. and the
international dial in is 216-562-0385. The conference ID for the
call is 6888202. The conference call will also be webcast live
on www.mammothenergy.com in the “Investors” section.
About Mammoth Energy Services,
Inc.
Mammoth is an integrated, growth-oriented company serving both
the oil and gas and the electric utility industries in North
America and US territories. Mammoth's subsidiaries provide a
diversified set of drilling and completion services to the
exploration and production industry including pressure pumping,
coil tubing, natural sand and proppant services as well as
trucking, drilling, cementing, water transfer among others. In
addition, its infrastructure division provides transmission,
distribution and logistics services to various public and private
owned utilities throughout the US and Puerto Rico.
For additional information about Mammoth, please visit its
website at www.mammothenergy.com, where Mammoth routinely posts
announcements, updates, events, investor information and
presentations and recent news releases.
Investor Contact:Don CristDirector of Investor
Relationsdcrist@mammothenergy.com405-608-6048
Media Contact:Peter
Mirijanianpeter@pmpadc.com(202) 464-8803
Forward-Looking Statements and
Cautionary Statements
This news release (and any oral statements made regarding the
subjects of this release, including on the conference call
announced herein) contains certain statements and information that
may constitute “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as
amended, and the Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts that
address activities, events or developments that we expect, believe
or anticipate will or may occur in the future are forward-looking
statements. The words “anticipate,” “believe,” “ensure,” “expect,”
“if,” “intend,” “plan,” “estimate,” “project,” “forecasts,”
“predict,” “outlook,” “aim,” “will,” “could,” “should,”
“potential,” “would,” “may,” “probable,” “likely” and similar
expressions, and the negative thereof, are intended to identify
forward-looking statements. Without limiting the generality of the
foregoing, forward-looking statements contained in this press
release specifically include statements, estimates and projections
regarding our business outlook and plans, future financial
position, liquidity and capital resources, operations, performance,
acquisitions, returns, capital expenditure budgets, costs and other
guidance regarding future developments. Forward-looking statements
are not assurances of future performance. These forward-looking
statements are based on management’s current expectations and
beliefs, forecasts for our existing operations, experience and
perception of historical trends, current conditions, anticipated
future developments and their effect on us, and other factors
believed to be appropriate. Although management believes that the
expectations and assumptions reflected in these forward-looking
statements are reasonable as and when made, no assurance can be
given that these assumptions are accurate or that any of these
expectations will be achieved (in full or at all). Moreover, our
forward-looking statements are subject to significant risks and
uncertainties, including those described in our Annual Reports on
Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form
8-K and other filings we make with the SEC, including those
relating to our acquisitions and our contracts, many of which are
beyond our control, which may cause actual results to differ
materially from our historical experience and our present
expectations or projections which are implied or expressed by the
forward-looking statements. Important factors that could cause
actual results to differ materially from those in the
forward-looking statements include, but are not limited to: risks
relating to economic conditions; volatility of crude oil and
natural gas commodity prices; delays in or failure of delivery of
current or future orders of specialized equipment; the loss of or
interruption in operations of one or more key suppliers or
customers; solvency of counterparties to our contracts and their
ability to timely pay for our services; oil and gas market
conditions; the effects of government regulation, permitting and
other legal requirements, including new legislation or regulation
of hydraulic fracturing; operating risks; the adequacy of our
capital resources and liquidity; weather; litigation; competition
in the oil and natural gas and infrastructure industries; and costs
and availability of resources.
Investors are cautioned not to place undue reliance on any
forward-looking statement which speaks only as of the date on which
such statement is made. We undertake no obligation to correct,
revise or update any forward-looking statement after the date such
statement is made, whether as a result of new information, future
events or otherwise, except as required by applicable law.
MAMMOTH ENERGY SERVICES,
INC.CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
| ASSETS |
|
September 30, |
|
December 31, |
|
|
|
2018 |
|
2017 |
|
CURRENT ASSETS |
|
(in thousands) |
| Cash and cash equivalents |
|
$ |
19,692 |
|
|
$ |
5,637 |
|
| Accounts receivable, net |
|
390,824 |
|
|
243,746 |
|
| Receivables from related parties |
|
25,335 |
|
|
33,788 |
|
| Inventories |
|
19,185 |
|
|
17,814 |
|
| Prepaid expenses |
|
10,969 |
|
|
12,552 |
|
| Other current assets |
|
652 |
|
|
886 |
|
| Total current assets |
|
466,657 |
|
|
314,423 |
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
434,785 |
|
|
351,017 |
|
|
Sand reserves |
|
72,207 |
|
|
74,769 |
|
|
Intangible assets, net - customer relationships |
|
3,021 |
|
|
9,623 |
|
|
Intangible assets, net - trade names |
|
6,134 |
|
|
6,516 |
|
|
Goodwill |
|
98,308 |
|
|
99,811 |
|
|
Deferred income tax asset |
|
— |
|
|
6,739 |
|
|
Other non-current assets |
|
4,046 |
|
|
4,345 |
|
| Total assets |
|
$ |
1,085,158 |
|
|
$ |
867,243 |
|
| LIABILITIES AND EQUITY |
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
| Accounts payable |
|
$ |
139,374 |
|
|
$ |
141,306 |
|
| Payables to related parties |
|
1,402 |
|
|
1,378 |
|
| Accrued expenses and other current liabilities |
|
42,605 |
|
|
40,895 |
|
| Income taxes payable |
|
172,000 |
|
|
36,409 |
|
| Total current liabilities |
|
355,381 |
|
|
219,988 |
|
|
|
|
|
|
|
|
Long-term debt |
|
— |
|
|
99,900 |
|
|
Deferred income tax liabilities |
|
33,601 |
|
|
34,147 |
|
|
Asset retirement obligation |
|
3,155 |
|
|
2,123 |
|
|
Other liabilities |
|
1,703 |
|
|
3,289 |
|
| Total liabilities |
|
393,840 |
|
|
359,447 |
|
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
| Equity: |
|
|
|
|
| Common stock, $0.01 par value, 200,000,000 shares
authorized, 44,755,678 and 44,589,306 issued and outstanding at
September 30, 2018 and December 31, 2017, respectively |
|
448 |
|
|
446 |
|
| Additional paid in capital |
|
529,825 |
|
|
508,010 |
|
| Retained earnings |
|
164,165 |
|
|
2,001 |
|
| Accumulated other comprehensive loss |
|
(3,120 |
) |
|
(2,661 |
) |
| Total equity |
|
691,318 |
|
|
507,796 |
|
| Total liabilities and equity |
|
$ |
1,085,158 |
|
|
$ |
867,243 |
|
MAMMOTH ENERGY SERVICES,
INC.CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME (LOSS) (unaudited)
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2018 |
|
2017 |
|
|
(in thousands, except per
share amounts) |
|
REVENUE |
|
| Services revenue |
$ |
346,368 |
|
|
$ |
63,113 |
|
|
$ |
455,545 |
|
|
$ |
1,210,572 |
|
|
$ |
119,864 |
|
| Services revenue - related parties |
18,933 |
|
|
56,861 |
|
|
40,611 |
|
|
108,632 |
|
|
134,426 |
|
| Product revenue |
14,955 |
|
|
15,276 |
|
|
27,708 |
|
|
67,703 |
|
|
29,043 |
|
| Product revenue - related parties |
3,787 |
|
|
14,055 |
|
|
9,730 |
|
|
24,979 |
|
|
39,200 |
|
|
Total revenue |
384,043 |
|
|
149,305 |
|
|
533,594 |
|
|
1,411,886 |
|
|
322,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
COST AND EXPENSES |
|
|
|
|
|
|
|
|
|
| Services cost of revenue (exclusive of depreciation,
depletion, amortization and accretion of $27,810, $79,283, $26,898,
$24,153 and $57,642, respectively, for the three and nine months
ended September 30, 2018, three month ended June 30, 2018 and three
and nine months ended September 30, 2017) |
216,670 |
|
|
89,346 |
|
|
302,283 |
|
|
809,932 |
|
|
191,911 |
|
| Services cost of revenue - related parties
(exclusive of depreciation, depletion, amortization and accretion
of $0, $0, $0, $0 and $0, respectively, for the three and nine
months ended September 30, 2018, three month ended June 30, 2018
and three and nine months ended September 30, 2017) |
1,425 |
|
|
9 |
|
|
2,428 |
|
|
5,645 |
|
|
701 |
|
| Product cost of revenue (exclusive of depreciation,
depletion, amortization and accretion of $4,183, $10,376, $3,879,
$3,033 and $6,599, respectively, for the three and nine months
ended September 30, 2018, three month ended June 30, 2018 and three
and nine months ended September 30, 2017) |
29,470 |
|
|
25,178 |
|
|
35,117 |
|
|
97,917 |
|
|
57,759 |
|
| Selling, general and administrative |
(45,761 |
) |
|
7,667 |
|
|
64,595 |
|
|
56,916 |
|
|
21,473 |
|
| Selling, general and administrative - related
parties |
437 |
|
|
355 |
|
|
532 |
|
|
1,398 |
|
|
986 |
|
| Depreciation, depletion, amortization and
accretion |
32,015 |
|
|
27,224 |
|
|
30,795 |
|
|
89,718 |
|
|
64,354 |
|
| Impairment of long-lived assets |
4,582 |
|
|
— |
|
|
187 |
|
|
4,769 |
|
|
— |
|
|
Total cost and expenses |
238,838 |
|
|
149,779 |
|
|
435,937 |
|
|
1,066,295 |
|
|
337,184 |
|
|
Operating income (loss) |
145,205 |
|
|
(474 |
) |
|
97,657 |
|
|
345,591 |
|
|
(14,651 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
OTHER (EXPENSE) INCOME |
|
|
|
|
|
|
|
|
|
| Interest expense, net |
(458 |
) |
|
(1,420 |
) |
|
(959 |
) |
|
(2,654 |
) |
|
(2,929 |
) |
| Bargain purchase gain, net of tax |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4,012 |
|
| Other, net |
(400 |
) |
|
(320 |
) |
|
(486 |
) |
|
(914 |
) |
|
(707 |
) |
|
Total other (expense) income |
(858 |
) |
|
(1,740 |
) |
|
(1,445 |
) |
|
(3,568 |
) |
|
376 |
|
|
Income (loss) before income taxes |
144,347 |
|
|
(2,214 |
) |
|
96,212 |
|
|
342,023 |
|
|
(14,275 |
) |
|
Provision (benefit) for income taxes |
74,835 |
|
|
(1,413 |
) |
|
53,512 |
|
|
174,265 |
|
|
(7,323 |
) |
|
Net income (loss) |
$ |
69,512 |
|
|
$ |
(801 |
) |
|
$ |
42,700 |
|
|
$ |
167,758 |
|
|
$ |
(6,952 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE INCOME (LOSS) |
|
|
|
|
|
|
|
|
|
| Foreign currency translation adjustment, net of tax
of ($87), $185, $86, $358 and $812, respectively, for the three and
nine months ended September 30, 2018, three month ended June 30,
2018 and three and nine months ended September 30, 2017) |
327 |
|
|
628 |
|
|
(325 |
) |
|
(459 |
) |
|
1,037 |
|
|
Comprehensive income (loss) |
$ |
69,839 |
|
|
$ |
(173 |
) |
|
$ |
42,375 |
|
|
$ |
167,299 |
|
|
$ |
(5,915 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share (basic) |
$ |
1.55 |
|
|
$ |
(0.02 |
) |
|
$ |
0.95 |
|
|
$ |
3.75 |
|
|
$ |
(0.17 |
) |
|
Net income (loss) per share (diluted) |
$ |
1.54 |
|
|
$ |
(0.02 |
) |
|
$ |
0.95 |
|
|
$ |
3.73 |
|
|
$ |
(0.17 |
) |
|
Weighted average number of shares outstanding (basic) |
44,756 |
|
|
44,502 |
|
|
44,737 |
|
|
44,718 |
|
|
40,526 |
|
|
Weighted average number of shares outstanding (diluted) |
45,082 |
|
|
44,502 |
|
|
45,059 |
|
|
45,012 |
|
|
40,526 |
|
|
Dividends declared per share |
$ |
0.125 |
|
|
— |
|
|
$ |
— |
|
|
$ |
0.125 |
|
|
— |
|
MAMMOTH ENERGY SERVICES,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
|
|
Nine Months
Ended |
|
|
September 30, |
|
|
2018 |
|
2017 |
| |
(in thousands) |
|
Cash flows from operating activities: |
|
|
|
| Net income (loss) |
$ |
167,758 |
|
|
$ |
(6,952 |
) |
| Adjustments to reconcile net income (loss) to cash
provided by operating activities: |
|
|
|
| Equity based compensation |
17,487 |
|
|
— |
|
| Stock based compensation |
4,331 |
|
|
2,648 |
|
| Depreciation, depletion, accretion and
amortization |
89,718 |
|
|
64,354 |
|
| Amortization of coil tubing strings |
1,473 |
|
|
2,144 |
|
| Amortization of debt origination costs |
299 |
|
|
299 |
|
| Bad debt expense |
(14,543 |
) |
|
117 |
|
| (Gain) loss on disposal of property and
equipment |
(185 |
) |
|
126 |
|
| Gain on bargain purchase |
— |
|
|
(4,012 |
) |
| Impairment of long-lived assets |
4,769 |
|
|
— |
|
| Deferred income taxes |
6,418 |
|
|
(8,151 |
) |
| Changes in assets and liabilities, net of
acquisitions of businesses: |
|
|
|
| Accounts receivable, net |
(132,553 |
) |
|
(37,440 |
) |
| Receivables from related parties |
8,453 |
|
|
(12,081 |
) |
| Inventories |
(2,665 |
) |
|
(7,878 |
) |
| Prepaid expenses and other assets |
1,814 |
|
|
2,644 |
|
| Accounts payable |
(5,179 |
) |
|
30,445 |
|
| Payables to related parties |
24 |
|
|
8 |
|
| Accrued expenses and other liabilities |
(405 |
) |
|
14,393 |
|
| Income taxes payable |
135,578 |
|
|
(28 |
) |
|
Net cash provided by operating activities |
282,592 |
|
|
40,636 |
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
| Purchases of property and equipment |
(144,898 |
) |
|
(102,273 |
) |
| Purchases of property and equipment from related
parties |
(4,632 |
) |
|
— |
|
| Business acquisitions |
(14,456 |
) |
|
(42,008 |
) |
| Proceeds from disposal of property and
equipment |
1,213 |
|
|
782 |
|
| Business combination cash acquired |
— |
|
|
2,671 |
|
|
Net cash used in investing activities |
(162,773 |
) |
|
(140,828 |
) |
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
| Borrowings from lines of credit |
77,000 |
|
|
118,850 |
|
| Repayments of lines of credit |
(176,900 |
) |
|
(24,850 |
) |
| Repayments of equipment financing note |
(219 |
) |
|
— |
|
| Dividends paid |
(5,594 |
) |
|
— |
|
| Repayment of acquisition long-term debt |
— |
|
|
(8,851 |
) |
|
Net cash (used in) provided by financing activities |
(105,713 |
) |
|
85,149 |
|
|
Effect of foreign exchange rate on cash |
(51 |
) |
|
82 |
|
|
Net change in cash and cash equivalents |
14,055 |
|
|
(14,961 |
) |
|
Cash and cash equivalents at beginning of period |
5,637 |
|
|
29,239 |
|
|
Cash and cash equivalents at end of period |
$ |
19,692 |
|
|
$ |
14,278 |
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information: |
|
|
|
| Cash paid for interest |
$ |
2,726 |
|
|
$ |
2,300 |
|
| Cash paid for income taxes |
$ |
32,269 |
|
|
$ |
840 |
|
|
Supplemental disclosure of non-cash transactions: |
|
|
|
| Purchases of property and equipment included in
accounts payable and accrued expenses |
$ |
21,124 |
|
|
$ |
13,648 |
|
| Acquisition of Sturgeon, Stingray Cementing LLC and
Stingray Energy Services LLC |
$ |
— |
|
|
$ |
23,091 |
|
MAMMOTH ENERGY SERVICES, INC.
SEGMENT INCOME STATEMENTS (unaudited) (in thousands)
| Three months ended September 30, 2018 |
Pressure
Pumping |
Infrastructure |
Sand |
Drilling |
All Other |
Eliminations |
Total |
|
Revenue from external customers |
$ |
91,595 |
|
$ |
237,052 |
|
$ |
18,742 |
|
$ |
15,800 |
|
$ |
20,854 |
|
$ |
— |
|
$ |
384,043 |
|
|
Intersegment revenues |
815 |
|
— |
|
18,268 |
|
139 |
|
671 |
|
(19,893 |
) |
— |
|
|
Total revenue |
92,410 |
|
237,052 |
|
37,010 |
|
15,939 |
|
21,525 |
|
(19,893 |
) |
384,043 |
|
|
Cost of revenue, exclusive of depreciation, depletion, amortization
and accretion |
54,023 |
|
128,267 |
|
29,470 |
|
14,104 |
|
21,701 |
|
— |
|
247,565 |
|
|
Intersegment cost of revenues |
18,897 |
|
37 |
|
546 |
|
158 |
|
245 |
|
(19,883 |
) |
— |
|
|
Total cost of revenue |
72,920 |
|
128,304 |
|
30,016 |
|
14,262 |
|
21,946 |
|
(19,883 |
) |
247,565 |
|
|
Selling, general and administrative |
4,335 |
|
(54,200 |
) |
1,618 |
|
1,362 |
|
1,561 |
|
— |
|
(45,324 |
) |
|
Depreciation, depletion, amortization and accretion |
12,665 |
|
6,591 |
|
4,184 |
|
4,327 |
|
4,248 |
|
— |
|
32,015 |
|
|
Impairment of long-lived assets |
143 |
|
— |
|
— |
|
— |
|
4,439 |
|
— |
|
4,582 |
|
|
Operating income (loss) |
2,347 |
|
156,357 |
|
1,192 |
|
(4,012 |
) |
(10,669 |
) |
(10 |
) |
145,205 |
|
|
Interest expense, net |
150 |
|
159 |
|
37 |
|
53 |
|
59 |
|
— |
|
458 |
|
|
Other expense |
2 |
|
181 |
|
199 |
|
(5 |
) |
23 |
|
— |
|
400 |
|
|
Income (loss) before income taxes |
$ |
2,195 |
|
$ |
156,017 |
|
$ |
956 |
|
$ |
(4,060 |
) |
$ |
(10,751 |
) |
$ |
(10 |
) |
$ |
144,347 |
|
| Three months ended September 30, 2017 |
Pressure
Pumping |
Infrastructure |
Sand |
Drilling |
All Other |
Eliminations |
Total |
|
Revenue from external customers |
$ |
75,705 |
|
$ |
13,486 |
|
$ |
29,332 |
|
$ |
13,644 |
|
$ |
17,138 |
|
$ |
— |
|
$ |
149,305 |
|
|
Intersegment revenues |
950 |
|
— |
|
3,401 |
|
— |
|
287 |
|
(4,638 |
) |
— |
|
|
Total revenue |
76,655 |
|
13,486 |
|
32,733 |
|
13,644 |
|
17,425 |
|
(4,638 |
) |
149,305 |
|
|
Cost of revenue, exclusive of depreciation, depletion, amortization
and accretion |
52,961 |
|
10,117 |
|
25,178 |
|
11,598 |
|
14,679 |
|
— |
|
114,533 |
|
|
Intersegment cost of revenues |
3,688 |
|
— |
|
905 |
|
45 |
|
— |
|
(4,638 |
) |
— |
|
|
Total cost of revenue |
56,649 |
|
10,117 |
|
26,083 |
|
11,643 |
|
14,679 |
|
(4,638 |
) |
114,533 |
|
|
Selling, general and administrative |
2,511 |
|
886 |
|
1,841 |
|
1,374 |
|
1,410 |
|
— |
|
8,022 |
|
|
Depreciation, depletion, amortization and accretion |
13,039 |
|
1,039 |
|
3,034 |
|
5,036 |
|
5,076 |
|
— |
|
27,224 |
|
|
Operating income (loss) |
4,456 |
|
1,444 |
|
1,775 |
|
(4,409 |
) |
(3,740 |
) |
— |
|
(474 |
) |
|
Interest expense, net |
592 |
|
68 |
|
87 |
|
570 |
|
103 |
|
— |
|
1,420 |
|
|
Other expense |
120 |
|
10 |
|
98 |
|
39 |
|
53 |
|
— |
|
320 |
|
|
Income (loss) before income taxes |
$ |
3,744 |
|
$ |
1,366 |
|
$ |
1,590 |
|
$ |
(5,018 |
) |
$ |
(3,896 |
) |
$ |
— |
|
$ |
(2,214 |
) |
| Three months ended June 30, 2018 |
Pressure
Pumping |
Infrastructure |
Sand |
Drilling |
All Other |
Eliminations |
Total |
|
Revenue from external customers |
$ |
100,333 |
|
$ |
360,250 |
|
$ |
37,439 |
|
$ |
17,126 |
|
$ |
18,446 |
|
$ |
— |
|
$ |
533,594 |
|
|
Intersegment revenues |
1,073 |
|
— |
|
15,406 |
|
84 |
|
1,721 |
|
(18,284 |
) |
— |
|
|
Total revenue |
101,406 |
|
360,250 |
|
52,845 |
|
17,210 |
|
20,167 |
|
(18,284 |
) |
533,594 |
|
|
Cost of revenue, exclusive of depreciation, depletion, amortization
and accretion |
61,593 |
|
210,189 |
|
35,117 |
|
15,280 |
|
17,649 |
|
— |
|
339,828 |
|
|
Intersegment cost of revenues |
16,174 |
|
754 |
|
1,019 |
|
(40 |
) |
129 |
|
(18,036 |
) |
— |
|
|
Total cost of revenue |
77,767 |
|
210,943 |
|
36,136 |
|
15,240 |
|
17,778 |
|
(18,036 |
) |
339,828 |
|
|
Selling, general and administrative |
20,822 |
|
39,786 |
|
1,787 |
|
1,591 |
|
1,141 |
|
— |
|
65,127 |
|
|
Depreciation, depletion, amortization and accretion |
13,829 |
|
4,094 |
|
3,881 |
|
5,349 |
|
3,642 |
|
— |
|
30,795 |
|
|
Impairment of long-lived assets |
— |
|
— |
|
— |
|
187 |
|
— |
|
— |
|
187 |
|
|
Operating income (loss) |
(11,012 |
) |
105,427 |
|
11,041 |
|
(5,157 |
) |
(2,394 |
) |
(248 |
) |
97,657 |
|
|
Interest expense, net |
341 |
|
106 |
|
76 |
|
265 |
|
171 |
|
— |
|
959 |
|
|
Other expense |
80 |
|
330 |
|
36 |
|
32 |
|
8 |
|
— |
|
486 |
|
|
Income (loss) before income taxes |
$ |
(11,433 |
) |
$ |
104,991 |
|
$ |
10,929 |
|
$ |
(5,454 |
) |
$ |
(2,573 |
) |
$ |
(248 |
) |
$ |
96,212 |
|
| Nine months ended September 30, 2018 |
Pressure
Pumping |
Infrastructure |
Sand |
Drilling |
All Other |
Eliminations |
Total |
|
Revenue from external customers |
$ |
288,507 |
|
$ |
922,761 |
|
$ |
92,684 |
|
$ |
48,154 |
|
$ |
59,780 |
|
$ |
— |
|
$ |
1,411,886 |
|
|
Intersegment revenues |
6,447 |
|
— |
|
48,186 |
|
225 |
|
4,807 |
|
(59,665 |
) |
— |
|
|
Total revenue |
294,954 |
|
922,761 |
|
140,870 |
|
48,379 |
|
64,587 |
|
(59,665 |
) |
1,411,886 |
|
|
Cost of revenue, exclusive of depreciation, depletion, amortization
and accretion |
182,228 |
|
532,532 |
|
97,917 |
|
43,859 |
|
56,958 |
|
— |
|
913,494 |
|
|
Intersegment cost of revenues |
50,473 |
|
2,582 |
|
5,851 |
|
280 |
|
479 |
|
(59,665 |
) |
— |
|
|
Total cost of revenue |
232,701 |
|
535,114 |
|
103,768 |
|
44,139 |
|
57,437 |
|
(59,665 |
) |
913,494 |
|
|
Selling, general and administrative |
27,820 |
|
17,437 |
|
5,049 |
|
4,206 |
|
3,802 |
|
— |
|
58,314 |
|
|
Depreciation, depletion, amortization and accretion |
40,480 |
|
13,092 |
|
10,381 |
|
14,031 |
|
11,734 |
|
— |
|
89,718 |
|
|
Impairment of long-lived assets |
143 |
|
— |
|
— |
|
187 |
|
4,439 |
|
— |
|
4,769 |
|
|
Operating income (loss) |
(6,190 |
) |
357,118 |
|
21,672 |
|
(14,184 |
) |
(12,825 |
) |
— |
|
345,591 |
|
|
Interest expense, net |
995 |
|
341 |
|
193 |
|
713 |
|
412 |
|
— |
|
2,654 |
|
|
Other expense |
94 |
|
513 |
|
222 |
|
67 |
|
18 |
|
— |
|
914 |
|
|
Income (loss) before income taxes |
$ |
(7,279 |
) |
$ |
356,264 |
|
$ |
21,257 |
|
$ |
(14,964 |
) |
$ |
(13,255 |
) |
$ |
— |
|
$ |
342,023 |
|
| Nine months ended September 30, 2017 |
Pressure
Pumping |
Infrastructure |
Sand |
Drilling |
All Other |
Eliminations |
Total |
|
Revenue from external customers |
$ |
166,082 |
|
$ |
15,195 |
|
$ |
68,244 |
|
$ |
36,867 |
|
$ |
36,145 |
|
$ |
— |
|
$ |
322,533 |
|
|
Intersegment revenues |
1,409 |
|
— |
|
4,848 |
|
— |
|
372 |
|
(6,629 |
) |
— |
|
|
Total revenue |
167,491 |
|
15,195 |
|
73,092 |
|
36,867 |
|
36,517 |
|
(6,629 |
) |
322,533 |
|
|
Cost of revenue, exclusive of depreciation, depletion, amortization
and accretion |
117,494 |
|
11,829 |
|
57,760 |
|
34,584 |
|
28,704 |
|
— |
|
250,371 |
|
|
Intersegment cost of revenues |
5,220 |
|
— |
|
1,359 |
|
45 |
|
5 |
|
(6,629 |
) |
— |
|
|
Total cost of revenue |
122,714 |
|
11,829 |
|
59,119 |
|
34,629 |
|
28,709 |
|
(6,629 |
) |
250,371 |
|
|
Selling, general and administrative |
6,691 |
|
1,241 |
|
6,315 |
|
4,102 |
|
4,110 |
|
— |
|
22,459 |
|
|
Depreciation, depletion, amortization and accretion |
31,823 |
|
1,379 |
|
6,603 |
|
14,978 |
|
9,571 |
|
— |
|
64,354 |
|
|
Operating income (loss) |
6,263 |
|
746 |
|
1,055 |
|
(16,842 |
) |
(5,873 |
) |
— |
|
(14,651 |
) |
|
Interest expense, net |
1,023 |
|
72 |
|
573 |
|
1,227 |
|
34 |
|
— |
|
2,929 |
|
|
Bargain purchase gain |
— |
|
— |
|
(4,012 |
) |
— |
|
— |
|
— |
|
(4,012 |
) |
|
Other expense |
127 |
|
10 |
|
252 |
|
263 |
|
55 |
|
— |
|
707 |
|
|
Income (loss) before income taxes |
$ |
5,113 |
|
$ |
664 |
|
$ |
4,242 |
|
$ |
(18,332 |
) |
$ |
(5,962 |
) |
$ |
— |
|
$ |
(14,275 |
) |
MAMMOTH ENERGY SERVICES,
INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Adjusted EBITDA
Adjusted EBITDA is a supplemental non-GAAP financial measure
that is used by management and external users of the Company's
financial statements, such as industry analysts, investors, lenders
and rating agencies. Mammoth defines Adjusted EBITDA as net income
(loss) before depreciation, depletion, amortization and accretion
expense, impairment of long-lived assets, acquisition related
costs, public offering costs, equity based compensation, stock
based compensation, bargain purchase gain, interest expense, net,
other (income) expense, net (which is comprised of the (gain) or
loss on disposal of long-lived assets) and provision (benefit) for
income taxes. The Company excludes the items listed above from net
income (loss) in arriving at Adjusted EBITDA because these amounts
can vary substantially from company to company within the energy
service industry depending upon accounting methods and book values
of assets, capital structures and the method by which the assets
were acquired. Adjusted EBITDA should not be considered as an
alternative to, or more meaningful than, net income (loss) or cash
flows from operating activities as determined in accordance with
GAAP or as an indicator of Mammoth's operating performance or
liquidity. Certain items excluded from Adjusted EBITDA are
significant components in understanding and assessing a company’s
financial performance, such as a company’s cost of capital and tax
structure, as well as the historic costs of depreciable assets,
none of which are components of Adjusted EBITDA. Mammoth's
computations of Adjusted EBITDA may not be comparable to other
similarly titled measures of other companies. The Company believes
that Adjusted EBITDA is a widely followed measure of operating
performance and may also be used by investors to measure its
ability to meet debt service requirements.
The following tables provide a reconciliation of Adjusted EBITDA
to the GAAP financial measure of net income (loss) on a
consolidated basis and for each of the Company's segments (in
thousands):
Consolidated
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
Reconciliation of Adjusted EBITDA to net income
(loss): |
2018 |
|
2017 |
|
2018 |
|
2018 |
|
2017 |
|
Net income (loss) |
$ |
69,512 |
|
|
$ |
(801 |
) |
|
$ |
42,700 |
|
|
$ |
167,758 |
|
|
$ |
(6,952 |
) |
|
Depreciation, depletion, accretion and amortization expense |
32,015 |
|
|
27,224 |
|
|
30,795 |
|
|
89,718 |
|
|
64,354 |
|
|
Impairment of long-lived assets |
4,582 |
|
|
— |
|
|
187 |
|
|
4,769 |
|
|
— |
|
|
Acquisition related costs |
99 |
|
|
264 |
|
|
77 |
|
|
130 |
|
|
2,455 |
|
|
Public offering costs |
260 |
|
|
— |
|
|
731 |
|
|
991 |
|
|
— |
|
|
Equity based compensation |
— |
|
|
— |
|
|
17,487 |
|
|
17,487 |
|
|
— |
|
|
Stock based compensation |
1,415 |
|
|
1,028 |
|
|
1,660 |
|
|
4,331 |
|
|
2,648 |
|
|
Bargain purchase gain |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(4,012 |
) |
|
Interest expense, net |
458 |
|
|
1,420 |
|
|
959 |
|
|
2,654 |
|
|
2,929 |
|
|
Other expense, net |
400 |
|
|
320 |
|
|
486 |
|
|
914 |
|
|
707 |
|
|
Provision (benefit) for income taxes |
74,835 |
|
|
(1,413 |
) |
|
53,512 |
|
|
174,265 |
|
|
(7,323 |
) |
|
Adjusted EBITDA |
$ |
183,576 |
|
|
$ |
28,042 |
|
|
$ |
148,594 |
|
|
$ |
463,017 |
|
|
$ |
54,806 |
|
Pressure Pumping Services
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
Reconciliation of Adjusted EBITDA to net income
(loss): |
2018 |
|
2017 |
|
2018 |
|
2018 |
|
2017 |
|
Net income |
$ |
2,195 |
|
|
$ |
3,744 |
|
|
$ |
(11,433 |
) |
|
$ |
(7,279 |
) |
|
$ |
5,113 |
|
|
Depreciation and amortization expense |
12,665 |
|
|
13,039 |
|
|
13,829 |
|
|
40,480 |
|
|
31,823 |
|
|
Impairment of long-lived assets |
143 |
|
|
— |
|
|
— |
|
|
143 |
|
|
— |
|
|
Acquisition related costs |
6 |
|
|
1 |
|
|
33 |
|
|
39 |
|
|
1 |
|
|
Public offering costs |
61 |
|
|
— |
|
|
202 |
|
|
263 |
|
|
— |
|
|
Equity based compensation |
— |
|
|
— |
|
|
17,487 |
|
|
17,487 |
|
|
— |
|
|
Stock based compensation |
400 |
|
|
428 |
|
|
453 |
|
|
1,271 |
|
|
1,202 |
|
|
Interest expense |
150 |
|
|
592 |
|
|
341 |
|
|
995 |
|
|
1,023 |
|
|
Other expense, net |
2 |
|
|
120 |
|
|
80 |
|
|
94 |
|
|
127 |
|
|
Adjusted EBITDA |
$ |
15,622 |
|
|
$ |
17,924 |
|
|
$ |
20,992 |
|
|
$ |
53,493 |
|
|
$ |
39,289 |
|
Infrastructure Services
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
Reconciliation of Adjusted EBITDA to net income
(loss): |
2018 |
|
2017 |
|
2018 |
|
2018 |
|
2017 |
|
Net income (loss) |
$ |
78,405 |
|
|
$ |
1,366 |
|
|
$ |
52,359 |
|
|
$ |
178,064 |
|
|
$ |
664 |
|
|
Depreciation and amortization expense |
6,591 |
|
|
1,039 |
|
|
4,094 |
|
|
13,092 |
|
|
1,379 |
|
|
Acquisition related costs |
— |
|
|
48 |
|
|
4 |
|
|
(4 |
) |
|
90 |
|
|
Public offering costs |
123 |
|
|
— |
|
|
360 |
|
|
483 |
|
|
— |
|
|
Stock based compensation |
555 |
|
|
29 |
|
|
606 |
|
|
1,618 |
|
|
29 |
|
|
Interest expense |
159 |
|
|
68 |
|
|
106 |
|
|
341 |
|
|
72 |
|
|
Other expense, net |
181 |
|
|
10 |
|
|
330 |
|
|
513 |
|
|
10 |
|
|
Provision for income taxes |
77,612 |
|
|
— |
|
|
52,632 |
|
|
178,200 |
|
|
— |
|
|
Adjusted EBITDA |
$ |
163,626 |
|
|
$ |
2,560 |
|
|
$ |
110,491 |
|
|
$ |
372,307 |
|
|
$ |
2,244 |
|
Natural Sand Proppant Services
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
Reconciliation of Adjusted EBITDA to net income
(loss): |
2018 |
|
2017 |
|
2018 |
|
2018 |
|
2017 |
|
Net income |
$ |
956 |
|
|
$ |
1,566 |
|
|
$ |
10,929 |
|
|
$ |
21,257 |
|
|
$ |
4,209 |
|
|
Depreciation, depletion, accretion and amortization expense |
4,184 |
|
|
3,034 |
|
|
3,881 |
|
|
10,381 |
|
|
6,603 |
|
|
Acquisition related costs |
— |
|
|
167 |
|
|
— |
|
|
(38 |
) |
|
2,121 |
|
|
Public offering costs |
49 |
|
|
— |
|
|
95 |
|
|
144 |
|
|
— |
|
|
Stock based compensation |
211 |
|
|
272 |
|
|
205 |
|
|
602 |
|
|
524 |
|
|
Bargain purchase gain |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(4,012 |
) |
|
Interest expense |
37 |
|
|
87 |
|
|
76 |
|
|
193 |
|
|
573 |
|
|
Other expense, net |
199 |
|
|
98 |
|
|
36 |
|
|
222 |
|
|
252 |
|
|
Provision for income taxes |
— |
|
|
24 |
|
|
— |
|
|
— |
|
|
33 |
|
|
Adjusted EBITDA |
$ |
5,636 |
|
|
$ |
5,248 |
|
|
$ |
15,222 |
|
|
$ |
32,761 |
|
|
$ |
10,303 |
|
Contract Land and Directional Drilling
Services
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
Reconciliation of Adjusted EBITDA to net income
(loss): |
2018 |
|
2017 |
|
2018 |
|
2018 |
|
2017 |
|
Net loss |
$ |
(4,060 |
) |
|
$ |
(5,018 |
) |
|
$ |
(5,454 |
) |
|
$ |
(14,964 |
) |
|
$ |
(18,332 |
) |
|
Depreciation and amortization expense |
4,327 |
|
|
5,036 |
|
|
5,349 |
|
|
14,031 |
|
|
14,978 |
|
|
Impairment of long-lived assets |
— |
|
|
— |
|
|
187 |
|
|
187 |
|
|
— |
|
|
Acquisition related costs |
— |
|
|
(16 |
) |
|
— |
|
|
— |
|
|
9 |
|
|
Public offering costs |
10 |
|
|
— |
|
|
34 |
|
|
44 |
|
|
— |
|
|
Stock based compensation |
132 |
|
|
138 |
|
|
301 |
|
|
540 |
|
|
430 |
|
|
Interest expense, net |
53 |
|
|
570 |
|
|
265 |
|
|
713 |
|
|
1,227 |
|
|
Other expense, net |
(5 |
) |
|
39 |
|
|
32 |
|
|
67 |
|
|
263 |
|
|
Adjusted EBITDA |
$ |
457 |
|
|
$ |
749 |
|
|
$ |
714 |
|
|
$ |
618 |
|
|
$ |
(1,425 |
) |
Other Services(a)
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
Reconciliation of Adjusted EBITDA to net income
(loss): |
2018 |
|
2017 |
|
2018 |
|
2018 |
|
2017 |
|
Net (loss) income |
$ |
(7,974 |
) |
|
$ |
(2,459 |
) |
|
$ |
(3,453 |
) |
|
$ |
(9,320 |
) |
|
$ |
1,394 |
|
|
Depreciation and amortization expense |
4,248 |
|
|
5,076 |
|
|
3,642 |
|
|
11,734 |
|
|
9,571 |
|
|
Impairment of long-lived assets |
4,439 |
|
|
— |
|
|
— |
|
|
4,439 |
|
|
— |
|
|
Acquisition related costs |
93 |
|
|
65 |
|
|
40 |
|
|
133 |
|
|
236 |
|
|
Public offering costs |
17 |
|
|
— |
|
|
40 |
|
|
57 |
|
|
— |
|
|
Stock based compensation |
117 |
|
|
162 |
|
|
94 |
|
|
300 |
|
|
463 |
|
|
Interest expense, net |
59 |
|
|
103 |
|
|
171 |
|
|
412 |
|
|
34 |
|
|
Other expense, net |
23 |
|
|
53 |
|
|
8 |
|
|
18 |
|
|
55 |
|
|
Provision (benefit) for income taxes |
(2,777 |
) |
|
(1,437 |
) |
|
880 |
|
|
(3,935 |
) |
|
(7,356 |
) |
|
Adjusted EBITDA |
$ |
(1,755 |
) |
|
$ |
1,563 |
|
|
$ |
1,422 |
|
|
$ |
3,838 |
|
|
$ |
4,397 |
|
(a) Includes results for our coil tubing, pressure
control, flowback, cementing, acidizing, equipment rentals, crude
oil hauling, water transfer and remote accommodations services and
corporate related activities. Our corporate related activities do
not generate revenue.
Adjusted Net Income and Adjusted Earnings per
Share
Adjusted net income and adjusted earnings per share are
supplemental non-GAAP financial measures that are used by
management to evaluate the Company's operating and financial
performance. Management believes these measures provide meaningful
information about the Company's performance by excluding certain
non-cash charges that may not be indicative of the Company's
ongoing operating results, such as equity based compensation, that
may not be indicative of the Company's ongoing operating results.
Adjusted net income and adjusted earnings per share should not be
considered in isolation or as a substitute for net income and
earnings per share prepared in accordance with GAAP and may not be
comparable to other similarly titled measures of other companies.
The following tables provide a reconciliation of adjusted net
income and adjusted earnings per share to the GAAP financial
measures of net income and earnings per share for the periods
specified.
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
September 30, |
|
September 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
(in thousands, except per
share amounts) |
|
Net income, as reported |
$ |
69,512 |
|
|
$ |
(801 |
) |
|
$ |
167,758 |
|
|
$ |
(6,952 |
) |
| Equity based compensation |
— |
|
|
— |
|
|
17,487 |
|
|
— |
|
|
Adjusted net income |
$ |
69,512 |
|
|
$ |
(801 |
) |
|
$ |
185,245 |
|
|
$ |
(6,952 |
) |
|
|
|
|
|
|
|
|
|
|
Basic earnings per share, as reported |
$ |
1.55 |
|
|
$ |
(0.02 |
) |
|
$ |
3.75 |
|
|
$ |
(0.17 |
) |
| Equity based compensation |
— |
|
|
— |
|
|
0.39 |
|
|
— |
|
|
Adjusted basic earnings per share |
$ |
1.55 |
|
|
$ |
(0.02 |
) |
|
$ |
4.14 |
|
|
$ |
(0.17 |
) |
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share, as reported |
$ |
1.54 |
|
|
$ |
(0.02 |
) |
|
$ |
3.73 |
|
|
$ |
(0.17 |
) |
| Equity based compensation |
— |
|
|
— |
|
|
0.39 |
|
|
— |
|
|
Adjusted diluted earnings per share |
$ |
1.54 |
|
|
$ |
(0.02 |
) |
|
$ |
4.12 |
|
|
$ |
(0.17 |
) |
Mammoth Energy Services (NASDAQ:TUSK)
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From Oct 2024 to Nov 2024
Mammoth Energy Services (NASDAQ:TUSK)
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From Nov 2023 to Nov 2024
