Mammoth Energy Services, Inc. ("Mammoth" or the "Company") (NASDAQ:
TUSK) today reported financial and operational results for the
fourth quarter and full year ended December 31, 2019.
Financial Highlights for the Fourth Quarter and Full
Year 2019:
Total revenue was $67.6 million for the three months ended
December 31, 2019, down from $113.4 million for the three
months ended September 30, 2019 and down from $278.2 million
for the three months ended December 31, 2018. Total revenue
was $625.0 million for the year ended December 31, 2019, down
from $1.7 billion for the year ended December 31, 2018.
Net loss for the three months ended December 31, 2019 was
$60.8 million, or $1.35 per fully diluted share, as compared to net
loss of $35.7 million, or $0.79 per fully diluted share, for the
three months ended September 30, 2019 and net income of $68.2
million, or $1.51 per fully diluted share, for the three months
ended December 31, 2018. Net loss for the year ended
December 31, 2019 was $79.0 million, or $1.76 per fully
diluted share, as compared to net income of $236.0 million, or
$5.24 per fully diluted share for the year ended December 31,
2018.
Adjusted net loss (as defined and reconciled below) for the
three months ended December 31, 2019 was $26.3 million, or
$0.58 per fully diluted share, as compared to adjusted net loss of
$29.2 million, or $0.65 per fully diluted share, for the three
months ended September 30, 2019 and adjusted net income of
$72.3 million, or $1.60 per fully diluted share, for the three
months ended December 31, 2018. Adjusted net loss for the year
ended December 31, 2019 was $38.0 million, or $0.85 per fully
diluted share, as compared to adjusted net income of $262.3
million, or $5.83 per fully diluted share for the year ended
December 31, 2018.
Adjusted EBITDA (as defined and reconciled below) was a loss of
$10.3 million for the three months ended December 31, 2019, as
compared to a loss of $3.8 million for the three months ended
September 30, 2019 and a positive $84.3 million for the three
months ended December 31, 2018. Adjusted EBITDA was a positive
$77.3 million for the year ended December 31, 2019, down from
$547.3 million for the year ended December 31, 2018.
Arty Straehla, Mammoth's Chief Executive Officer, stated, “The
hiring of a new president for our infrastructure division in
November 2019 has stabilized operations, attracted experienced
industry leaders to key management positions and improved the
performance of the business. With this management team in place, we
are confident we can grow our infrastructure business given that
demand for the services we offer outstrips supply. Market
fundamentals are challenging for our oil field businesses. Although
we believe the reported retirement of equipment across the industry
is beginning to help the market, pricing and utilization for our
oil field businesses remain depressed. The conversion of our
pressure pumping fleets to dynamic gas blending (“DGB”)
capabilities is progressing, and all three of our staffed fleets
are operating.”
Infrastructure Services
Mammoth's infrastructure services segment contributed revenues
of $26.6 million for the three months ended December 31, 2019,
a decrease from $37.3 million for the three months ended
September 30, 2019 and a decline from $159.6 million for the
three months ended December 31, 2018.
As of December 31, 2019, Mammoth had a total of
approximately 140 transmission and distribution crews in the
continental United States.
The infrastructure segment contributed revenues of $214.4
million for the year ended December 31, 2019, down from $1.1
billion for the year ended December 31, 2018. Revenues for the
Company's infrastructure operations in the continental United
States increased approximately 96% from $60.2 million for the year
ended December 31, 2018 to $117.8 million for the year ended
December 31, 2019.
Pressure Pumping Services
Mammoth's pressure pumping division contributed revenues
(inclusive of inter-segment revenues) of $25.0 million on 989
stages for the three months ended December 31, 2019, a
decrease from $44.6 million on 783 stages for the three months
ended September 30, 2019 and a decrease from $72.8 million on
1,164 stages for the three months ended December 31, 2018. On
average, 1.7 of our fleets were active for the three months ended
December 31, 2019, compared to average utilization of 1.2
fleets during the three months ended September 30, 2019 and an
average utilization of 3.7 fleets during the three months ended
December 31, 2018.
The pressure pumping division contributed revenues (inclusive of
inter-segment revenues) of $246.3 million on 5,378 stages for the
year ended December 31, 2019, down from $369.5 million on
6,245 stages for the year ended December 31, 2018. On average,
2.4 of our fleets were active for the year ended December 31,
2019 compared to 3.6 fleets for the year ended December 31,
2018.
The conversion of our pressure pumping fleets to DGB is
progressing with the initial converted units expected to be field
tested in the coming weeks. All three of our staffed fleets are
currently operating in the northeast.
Natural Sand Proppant Services
Mammoth's natural sand proppant division contributed revenues
(inclusive of inter-segment revenues) of $3.0 million for the three
months ended December 31, 2019, a decrease from $18.4 million
for the three months ended September 30, 2019 and a decrease
from $27.4 million for the three months ended December 31,
2018. The Company sold approximately 76,000 tons of sand during the
three months ended December 31, 2019, a decline from
approximately 456,000 tons sold during the three months ended
September 30, 2019 and approximately 569,000 tons sold during
the three months ended December 31, 2018. The Company's
average sales price for the sand sold during the three months ended
December 31, 2019 was $19.95 per ton, a decrease from $26.84
per ton average sales price during the three months ended
September 30, 2019 and $28.30 per ton average sales price
during the three months ended December 31, 2018.
The natural sand proppant division contributed revenues
(inclusive of inter-segment revenues) of $99.6 million for the year
ended December 31, 2019, as compared to $168.3 million for the
year ended December 31, 2018. The Company sold 2.0 million
tons of sand during the year ended December 31, 2019, a
decline from 2.7 million tons of sand during the year ended
December 31, 2018. The Company's average sales price for the
sand sold during the year ended December 31, 2019 was $29.70
per ton, a decline from $39.16 per ton average sales price during
the year ended December 31, 2018.
Drilling Services
Mammoth's drilling services division contributed revenues of
$4.7 million for the three months ended December 31, 2019, a
decrease from $6.1 million for the three months ended
September 30, 2019 and a decrease from $18.3 million for the
three months ended December 31, 2018. The decline is primarily
due to reduced utilization. The Company's average active rigs was
0.2 for the three months ended December 31, 2019 compared to
1.0 for the three months ended September 30, 2019 and 4.2 for
the three months ended December 31, 2018.
The drilling services division contributed revenues of $32.2
million for the year ended December 31, 2019, as compared to
$66.7 million for the year ended December 31, 2018. The
Company's average active rigs decreased from 4.3 in 2018 to 1.4 in
2019.
As a result of market conditions, the Company has temporarily
shut down its contract land drilling operations beginning in
December 2019.
Other Services
Mammoth's other services, including coil tubing, pressure
control, flowback, cementing, acidizing, equipment rentals, crude
oil hauling, full service transportation and remote accommodations,
contributed revenues (inclusive of inter-segment revenues) of $9.3
million for the three months ended December 31, 2019, a
decrease from $14.0 million for the three months ended
September 30, 2019 and a decrease from $20.8 million for the
three months ended December 31, 2018. An average of 467 pieces
of equipment were rented during the three months ended
December 31, 2019, down 14% from an average of 541 pieces of
equipment rented during the three months ended September 30,
2019 and down 7% from an average of 500 pieces of equipment rented
for the three months ended December 31, 2018.
The Company's other services contributed revenues of $69.3
million for the year ended December 31, 2019, as compared to
$83.7 million for the year ended December 31, 2018. The
decrease was primarily due to a decline in utilization for our coil
tubing business as well as reduced cementing and acidizing revenue.
As a result of market conditions, the Company has temporarily shut
down its cementing and acidizing operations as well as its flowback
operations beginning in the third quarter of 2019.
Selling, General and Administrative
Expenses
Selling, general and administrative ("SG&A") expenses were
$10.3 million for the three months ended December 31, 2019, as
compared to $14.4 million for the three months ended
September 30, 2019 and $14.8 million for the three months
ended December 31, 2018. SG&A expenses were $51.6 million
for the year ended December 31, 2019, down from $73.1 million
for the year ended December 31, 2018.
Following is a breakout of SG&A expense (in thousands):
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
Cash expenses: |
|
|
|
|
|
|
|
|
|
Compensation and benefits |
$ |
3,203 |
|
|
$ |
9,409 |
|
|
$ |
4,777 |
|
|
$ |
19,364 |
|
|
$ |
42,950 |
|
Professional services |
4,301 |
|
|
3,018 |
|
|
6,104 |
|
|
17,128 |
|
|
11,854 |
|
Other(a) |
2,010 |
|
|
1,475 |
|
|
1,665 |
|
|
10,300 |
|
|
10,718 |
|
Total cash SG&A expense |
9,514 |
|
|
13,902 |
|
|
12,546 |
|
|
46,792 |
|
|
65,522 |
|
Non-cash expenses: |
|
|
|
|
|
|
|
|
|
Bad debt provision(b) |
204 |
|
|
(34 |
) |
|
964 |
|
|
1,434 |
|
|
(14,578 |
) |
Equity based compensation(c) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
17,487 |
|
Stock based compensation |
620 |
|
|
915 |
|
|
913 |
|
|
3,326 |
|
|
4,666 |
|
Total non-cash SG&A expense |
824 |
|
|
881 |
|
|
1,877 |
|
|
4,760 |
|
|
7,575 |
|
Total SG&A expense |
$ |
10,338 |
|
|
$ |
14,783 |
|
|
$ |
14,423 |
|
|
$ |
51,552 |
|
|
$ |
73,097 |
|
a. Includes travel-related costs, IT expenses, rent,
utilities and other general and administrative-related
costs.b. During the year ended December 31, 2018, the
Company received payment for amounts previously reserved in 2017.
As a result, during the year ended December 31, 2018, the
Company reversed bad debt expense of $16.0 million recognized in
2017.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 15%
for the three months ended December 31, 2019, as compared to
13% for the three months ended September 30, 2019 and 5% for
the three months ended December 31, 2018. SG&A expenses,
as a percentage of total revenue, were 8% for the year ended
December 31, 2019, as compared to 4% for the year ended
December 31, 2018.
Liquidity
As of December 31, 2019, Mammoth had cash on hand totaling
$5.9 million and outstanding borrowings under its revolving credit
facility of $80.0 million. As of December 31, 2019, the
Company had $96.1 million of available borrowing capacity under its
revolving credit facility, after giving effect to $8.7 million of
outstanding letters of credit, resulting in total liquidity of
approximately $102.0 million.
On February 26, 2020, the Company entered into a second
amendment to its revolving credit facility to, among other things,
(i) amend its financial covenants, as outlined below, (ii) decrease
the maximum revolving advance amount from $185 million to $130
million, (iii) decrease the amount that the maximum revolving
advance can be increased to (the accordion) from $350 million to
$180 million, (iv) increase the applicable margin ranges from 2.00%
to 2.50% per annum in the case of the alternate base rate and from
3.00% to 3.50% per annum in the case of LIBOR, (v) increase the
aggregate amount of permitted asset dispositions, and (vi) permit
certain sale-leaseback transactions.
The financial covenants under the revolving credit facility were
amended as follows:
- the minimum interest coverage ratio of 3.0 to 1.0 was
eliminated;
- the maximum leverage coverage ratio of 4.0 to 1.0 was
eliminated for the first two fiscal quarters of 2020 and, beginning
with the fiscal quarter ended September 30, 2020, changed to 2.5 to
1.0;
- beginning with the fiscal quarter ended September 30, 2020, a
minimum fixed charge coverage ratio of at least 1.1 to 1.0 was
added; and
- from the effective date of February 26, 2020 through September
30, 2020, a minimum excess availability covenant of 10% of the
maximum revolving advance amount was added.
As of February 26, 2020, Mammoth had $87.4 million in
borrowings outstanding under its revolving credit facility, leaving
an aggregate of $20.6 million of available borrowing capacity under
this facility, after giving effect to the recent amendment that
reduced the maximum revolving advance amount to $130 million. The
available borrowing capacity is reduced by (i) a minimum excess
availability covenant of 10% of the maximum revolving advance
amount and (ii) $9.0 million of outstanding letters of credit.
Capital Expenditures
The following table summarizes Mammoth's capital expenditures by
operating division for the periods indicated (in thousands):
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
Infrastructure services(a) |
$ |
90 |
|
|
$ |
22,409 |
|
|
$ |
122 |
|
|
$ |
5,643 |
|
|
$ |
100,701 |
|
Pressure pumping
services(b) |
398 |
|
|
9,632 |
|
|
2,963 |
|
|
14,703 |
|
|
33,774 |
|
Natural sand proppant
services(c) |
174 |
|
|
2,132 |
|
|
728 |
|
|
2,877 |
|
|
17,935 |
|
Drilling services(d) |
84 |
|
|
1,127 |
|
|
146 |
|
|
3,156 |
|
|
13,398 |
|
Other(e) |
125 |
|
|
7,113 |
|
|
711 |
|
|
9,382 |
|
|
26,135 |
|
Total capital
expenditures |
$ |
871 |
|
|
$ |
42,413 |
|
|
$ |
4,670 |
|
|
$ |
35,761 |
|
|
$ |
191,943 |
|
a. Capital expenditures primarily for truck, tooling and
other equipment for the periods presented.b. Capital
expenditures primarily for pressure pumping and water transfer
equipment for the periods presented.c. Capital expenditures
primarily for maintenance for the 2019 periods presented and plant
upgrades for the 2018 periods presented.d. Capital
expenditures primarily for upgrades to the Company's rig fleet for
the periods presented.e. Capital expenditures primarily for
equipment for the Company's rental and crude hauling businesses for
the 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 Reports filed on Form 10-K with the Securities and
Exchange Commission ("SEC"), 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.
Based on its assessment of Financial Accounting Standards Board
guidance at December 31, 2019, the Company identified
four reportable segments: infrastructure services, pressure pumping
services, natural sand proppant services and drilling services. For
the year ended December 31, 2018, the Company identified three
reportable segments consisting of infrastructure services, pressure
pumping services and natural sand proppant services. The Company
changed its reportable segment presentation in 2019 to include its
drilling services, which includes Bison Drilling and Field
Services, LLC, Bison Trucking LLC, Panther Drilling Systems LLC,
Mako Acquisitions LLC and White Wing Tubular LLC, as its own
reportable segment based on certain quantitative thresholds. The
results of the entities were previously included in the reconciling
column titled "All Other" in the tables below. The financial
results by segment below for the three months ended September 30,
2019 and the three months and year ended December 31,
2018 have been retroactively adjusted to reflect this change
in reportable segments.
Conference Call Information
Mammoth will host a conference call on Thursday, February 27,
2020 at 4:00 p.m. CST (5:00 p.m. EST) to discuss its fourth quarter
and full year 2019 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 3895496. 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 energy service company
serving companies engaged in the exploration and development of
North American onshore unconventional oil and natural gas reserves
and government-funded utilities, private utilities, public
investor-owned utilities and co-operative utilities through its
energy infrastructure services. Mammoth’s suite of services and
products include: pressure pumping services, infrastructure
services, natural sand and proppant services, drilling services and
other energy services.
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 Mammoth expects,
believes or anticipates 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 the Company's 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 the
Company's existing operations, experience and perception of
historical trends, current conditions, anticipated future
developments and their effect on Mammoth, 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, the
Company's forward-looking statements are subject to significant
risks and uncertainties, including those described in its Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K and other filings it makes with the SEC,
including those relating to the Company's acquisitions and
contracts, many of which are beyond the Company's control, which
may cause actual results to differ materially from historical
experience and 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: the failure to receive or delays in receiving
governmental authorizations, approvals and/or payments; the outcome
of ongoing government investigations and other legal proceedings,
including those relating to the contracts awarded to the Company's
subsidiary Cobra Acquisitions LLC by the Puerto Rico Electric Power
Authority; the Company's inability to replace the prior levels of
work in its business segments, including its infrastructure and
pressure pumping segments; risks relating to economic conditions;
the loss of or interruption in operations of one or more key
suppliers or customers; the effects of government regulation,
permitting and other legal requirements; operating risks; the
adequacy of capital resources and liquidity; weather; natural
disasters; global or national health concerns, including the
outbreak of pandemic or contagious disease, such as the
coronavirus; 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. |
CONSOLIDATED BALANCE SHEETS |
|
ASSETS |
December 31, |
|
December 31, |
|
2019 |
|
2018 |
CURRENT ASSETS |
(in thousands) |
Cash and cash equivalents |
$ |
5,872 |
|
|
$ |
67,625 |
|
Accounts receivable, net |
363,053 |
|
|
337,460 |
|
Receivables from related parties |
7,523 |
|
|
11,164 |
|
Inventories |
17,483 |
|
|
21,302 |
|
Prepaid expenses |
12,354 |
|
|
11,317 |
|
Other current assets |
695 |
|
|
688 |
|
Total current assets |
406,980 |
|
|
449,556 |
|
|
|
|
|
Property, plant and equipment,
net |
352,772 |
|
|
436,699 |
|
Sand reserves |
68,351 |
|
|
71,708 |
|
Operating lease right-of-use
assets |
43,446 |
|
|
— |
|
Intangible assets, net -
customer relationships |
583 |
|
|
1,711 |
|
Intangible assets, net - trade
names |
5,205 |
|
|
6,045 |
|
Goodwill |
67,581 |
|
|
101,245 |
|
Other non-current assets |
7,467 |
|
|
6,127 |
|
Total assets |
$ |
952,385 |
|
|
$ |
1,073,091 |
|
LIABILITIES AND EQUITY |
|
|
|
CURRENT LIABILITIES |
|
|
|
Accounts payable |
$ |
39,220 |
|
|
$ |
68,843 |
|
Payables to related parties |
526 |
|
|
370 |
|
Accrued expenses and other current liabilities |
40,754 |
|
|
59,652 |
|
Current operating lease liability |
16,432 |
|
|
— |
|
Income taxes payable |
33,465 |
|
|
104,958 |
|
Total current liabilities |
130,397 |
|
|
233,823 |
|
|
|
|
|
Long-term debt |
80,000 |
|
|
— |
|
Deferred income tax
liabilities |
36,873 |
|
|
79,309 |
|
Long-term operating lease
liability |
27,102 |
|
|
— |
|
Asset retirement
obligation |
4,241 |
|
|
3,164 |
|
Other liabilities |
5,031 |
|
|
2,743 |
|
Total liabilities |
283,644 |
|
|
319,039 |
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
|
|
EQUITY |
|
|
|
Equity: |
|
|
|
Common stock, $0.01 par value, 200,000,000 shares authorized,
45,108,545 and 44,876,649 issued and outstanding at December 31,
2019 and 2018 |
451 |
|
|
449 |
|
Additional paid in capital |
535,094 |
|
|
530,919 |
|
Retained earnings |
136,502 |
|
|
226,765 |
|
Accumulated other comprehensive loss |
(3,306 |
) |
|
(4,081 |
) |
Total equity |
668,741 |
|
|
754,052 |
|
Total liabilities and equity |
$ |
952,385 |
|
|
$ |
1,073,091 |
|
|
|
|
|
|
|
|
|
|
MAMMOTH ENERGY SERVICES, INC. |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME |
|
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
|
(in thousands, except per share amounts) |
REVENUE |
|
Services revenue |
$ |
57,950 |
|
|
$ |
260,513 |
|
|
$ |
85,783 |
|
|
$ |
452,594 |
|
|
$ |
1,471,085 |
|
Services revenue - related parties |
6,714 |
|
|
9,551 |
|
|
15,000 |
|
|
102,624 |
|
|
118,183 |
|
Product revenue |
1,724 |
|
|
8,063 |
|
|
9,710 |
|
|
42,105 |
|
|
75,766 |
|
Product revenue - related parties |
1,249 |
|
|
71 |
|
|
2,924 |
|
|
27,689 |
|
|
25,050 |
|
Total revenue |
67,637 |
|
|
278,198 |
|
|
113,417 |
|
|
625,012 |
|
|
1,690,084 |
|
|
|
|
|
|
|
|
|
|
|
COST AND EXPENSES |
|
|
|
|
|
|
|
|
|
Services cost of revenue (exclusive of depreciation,
depletion,amortization and accretion of $25,872, $26,999, $25,749,
$102,901 and $106,282, respectively, for the three months ended
December 31, 2019, December 31, 2018 and September 30, 2019 and
years ended December 31, 2019 and 2018) |
68,599 |
|
|
151,273 |
|
|
91,813 |
|
|
451,206 |
|
|
961,205 |
|
Services cost of revenue - related parties (exclusive of
depreciation, depletion, amortization and accretion of $0, $0, $0,
$0 and $0, respectively, for the three months ended December 31,
2019, December 31, 2018 and September 30, 2019 and years ended
December 31, 2019 and 2018) |
633 |
|
|
240 |
|
|
774 |
|
|
4,770 |
|
|
5,885 |
|
Product cost of revenue (exclusive of depreciation, depletion,
amortization and accretion of $2,626, $3,136, $4,019, $14,039 and
$13,512, respectively, for the three months ended December 31,
2019, December 31, 2018 and September 30, 2019and years ended
December 31, 2019 and 2018) |
6,337 |
|
|
28,797 |
|
|
18,547 |
|
|
87,812 |
|
|
126,714 |
|
Selling, general and administrative |
9,978 |
|
|
14,283 |
|
|
14,029 |
|
|
49,705 |
|
|
71,199 |
|
Selling, general and administrative - related parties |
360 |
|
|
500 |
|
|
394 |
|
|
1,847 |
|
|
1,898 |
|
Depreciation, depletion, amortization and accretion |
28,521 |
|
|
30,159 |
|
|
29,791 |
|
|
117,033 |
|
|
119,877 |
|
Impairment of goodwill |
30,470 |
|
|
— |
|
|
3,194 |
|
|
33,664 |
|
|
3,203 |
|
Impairment of other long-lived assets |
4,010 |
|
|
4,086 |
|
|
3,348 |
|
|
7,358 |
|
|
5,652 |
|
Total cost and expenses |
148,908 |
|
|
229,338 |
|
|
161,890 |
|
|
753,395 |
|
|
1,295,633 |
|
Operating (loss) income |
(81,271 |
) |
|
48,860 |
|
|
(48,473 |
) |
|
(128,383 |
) |
|
394,451 |
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
Interest expense, net |
(1,486 |
) |
|
(533 |
) |
|
(1,398 |
) |
|
(4,958 |
) |
|
(3,187 |
) |
Other, net |
7,272 |
|
|
(1,122 |
) |
|
6,368 |
|
|
42,216 |
|
|
(2,036 |
) |
Total other income
(expense) |
5,786 |
|
|
(1,655 |
) |
|
4,970 |
|
|
37,258 |
|
|
(5,223 |
) |
(Loss) income before income
taxes |
(75,485 |
) |
|
47,205 |
|
|
(43,503 |
) |
|
(91,125 |
) |
|
389,228 |
|
(Benefit) provision for income
taxes |
(14,706 |
) |
|
(21,002 |
) |
|
(7,794 |
) |
|
(12,081 |
) |
|
153,263 |
|
Net (loss) income |
$ |
(60,779 |
) |
|
$ |
68,207 |
|
|
$ |
(35,709 |
) |
|
$ |
(79,044 |
) |
|
$ |
235,965 |
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE (LOSS)
INCOME |
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment, net of tax of $69, $212,
($49), ($203) and $397, respectively, for the three months ended
December 31, 2019, December 31, 2018 and September 30, 2019 and
years ended December 31, 2019 and 2018) |
282 |
|
|
(961 |
) |
|
(213 |
) |
|
775 |
|
|
(1,420 |
) |
Comprehensive (loss)
income |
$ |
(60,497 |
) |
|
$ |
67,246 |
|
|
$ |
(35,922 |
) |
|
$ |
(78,269 |
) |
|
$ |
234,545 |
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per share
(basic) |
$ |
(1.35 |
) |
|
$ |
1.52 |
|
|
$ |
(0.79 |
) |
|
$ |
(1.76 |
) |
|
$ |
5.27 |
|
Net (loss) income per share
(diluted) |
$ |
(1.35 |
) |
|
$ |
1.51 |
|
|
$ |
(0.79 |
) |
|
$ |
(1.76 |
) |
|
$ |
5.24 |
|
Weighted average number of
shares outstanding (basic) |
45,092 |
|
|
44,845 |
|
|
45,020 |
|
|
45,011 |
|
|
44,750 |
|
Weighted average number of
shares outstanding (diluted) |
45,092 |
|
|
45,048 |
|
|
45,020 |
|
|
45,011 |
|
|
45,021 |
|
Dividends declared per
share |
$ |
— |
|
|
0.125 |
|
|
$ |
— |
|
|
$ |
0.25 |
|
|
0.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MAMMOTH ENERGY SERVICES, INC. |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
|
Twelve Months Ended |
|
December 31, |
|
2019 |
|
2018 |
|
(in thousands) |
Cash flows from operating
activities: |
|
|
|
Net (loss) income |
$ |
(79,044 |
) |
|
$ |
235,965 |
|
Adjustments to reconcile net (loss) income to cash (used in)
provided by operating activities: |
|
|
|
Equity based compensation |
— |
|
|
17,487 |
|
Stock based compensation |
4,177 |
|
|
5,425 |
|
Depreciation, depletion, accretion and amortization |
117,033 |
|
|
119,877 |
|
Amortization of coil tubing strings |
1,641 |
|
|
2,193 |
|
Amortization of debt origination costs |
326 |
|
|
387 |
|
Bad debt expense |
1,434 |
|
|
(14,578 |
) |
Loss on disposal of property and equipment |
55 |
|
|
947 |
|
Impairment of goodwill |
33,664 |
|
|
3,203 |
|
Impairment of other long-lived assets |
7,358 |
|
|
5,652 |
|
Inventory obsolescence |
1,349 |
|
|
— |
|
Deferred income taxes |
(42,639 |
) |
|
52,226 |
|
Other |
(986 |
) |
|
16 |
|
Changes in assets and liabilities, net of acquisitions of
businesses: |
|
|
|
Accounts receivable, net |
(27,006 |
) |
|
(78,840 |
) |
Receivables from related parties |
3,641 |
|
|
22,624 |
|
Inventories |
830 |
|
|
(5,502 |
) |
Prepaid expenses and other assets |
(1,040 |
) |
|
1,423 |
|
Accounts payable |
(25,968 |
) |
|
(64,966 |
) |
Payables to related parties |
156 |
|
|
(1,008 |
) |
Accrued expenses and other liabilities |
(18,800 |
) |
|
15,445 |
|
Income taxes payable |
(71,499 |
) |
|
68,692 |
|
Net cash (used in) provided by
operating activities |
(95,318 |
) |
|
386,668 |
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
Purchases of property and equipment |
(35,417 |
) |
|
(187,285 |
) |
Purchases of property and equipment from related parties |
(344 |
) |
|
(4,658 |
) |
Business acquisitions |
— |
|
|
(20,824 |
) |
Contributions to equity investee |
(680 |
) |
|
(702 |
) |
Proceeds from disposal of property and equipment |
3,217 |
|
|
1,514 |
|
Net cash used in investing
activities |
(33,224 |
) |
|
(211,955 |
) |
|
|
|
|
Cash flows from financing
activities: |
|
|
|
Borrowings from lines of credit |
156,000 |
|
|
77,000 |
|
Repayments of lines of credit |
(76,000 |
) |
|
(176,900 |
) |
Dividends paid |
(11,219 |
) |
|
(11,201 |
) |
Principal payments on financing leases and equipment financing
notes |
(2,079 |
) |
|
(292 |
) |
Debt issuance costs |
— |
|
|
(1,199 |
) |
Net cash provided by (used in)
financing activities |
66,702 |
|
|
(112,592 |
) |
Effect of foreign exchange
rate on cash |
87 |
|
|
(133 |
) |
Net change in cash and cash
equivalents |
(61,753 |
) |
|
61,988 |
|
Cash and cash equivalents at
beginning of period |
67,625 |
|
|
5,637 |
|
Cash and cash equivalents at
end of period |
$ |
5,872 |
|
|
$ |
67,625 |
|
|
|
|
|
Supplemental disclosure of
cash flow information: |
|
|
|
Cash paid for interest |
$ |
4,741 |
|
|
$ |
3,212 |
|
Cash paid for income taxes |
$ |
110,848 |
|
|
$ |
32,757 |
|
Supplemental disclosure of
non-cash transactions: |
|
|
|
Purchases of property and equipment included in accounts
payable |
$ |
2,303 |
|
|
$ |
11,908 |
|
Right-of-use assets obtained for financing lease liabilities |
$ |
3,721 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
MAMMOTH ENERGY SERVICES, INC. |
SEGMENT INCOME STATEMENTS |
(in thousands) |
|
Three
months ended December 31, 2019 |
Infrastructure |
PressurePumping |
Sand |
Drilling |
All Other |
Eliminations |
Total |
Revenue from external customers |
$ |
26,618 |
|
$ |
24,515 |
|
$ |
2,974 |
|
$ |
4,637 |
|
$ |
8,893 |
|
$ |
— |
|
$ |
67,637 |
|
Intersegment revenues |
— |
|
442 |
|
— |
|
14 |
|
362 |
|
(818 |
) |
— |
|
Total revenue |
26,618 |
|
24,957 |
|
2,974 |
|
4,651 |
|
9,255 |
|
(818 |
) |
67,637 |
|
Cost of revenue, exclusive of
depreciation, depletion, amortization and accretion |
30,988 |
|
20,891 |
|
6,162 |
|
6,934 |
|
10,594 |
|
— |
|
75,569 |
|
Intersegment cost of
revenues |
— |
|
339 |
|
28 |
|
160 |
|
291 |
|
(818 |
) |
— |
|
Total cost of revenue |
30,988 |
|
21,230 |
|
6,190 |
|
7,094 |
|
10,885 |
|
(818 |
) |
75,569 |
|
Selling, general and
administrative |
5,516 |
|
1,449 |
|
792 |
|
1,042 |
|
1,539 |
|
— |
|
10,338 |
|
Depreciation, depletion,
amortization and accretion |
7,961 |
|
9,996 |
|
2,627 |
|
3,389 |
|
4,548 |
|
— |
|
28,521 |
|
Impairment of goodwill |
434 |
|
23,423 |
|
2,684 |
|
— |
|
3,929 |
|
— |
|
30,470 |
|
Impairment of other long-lived
assets |
— |
|
— |
|
— |
|
2,955 |
|
1,055 |
|
— |
|
4,010 |
|
Operating loss |
(18,281 |
) |
(31,141 |
) |
(9,319 |
) |
(9,829 |
) |
(12,701 |
) |
— |
|
(81,271 |
) |
Interest expense, net |
665 |
|
318 |
|
48 |
|
227 |
|
228 |
|
— |
|
1,486 |
|
Other (income) expense,
net |
(7,679 |
) |
574 |
|
— |
|
14 |
|
(181 |
) |
— |
|
(7,272 |
) |
Loss before income taxes |
$ |
(11,267 |
) |
$ |
(32,033 |
) |
$ |
(9,367 |
) |
$ |
(10,070 |
) |
$ |
(12,748 |
) |
$ |
— |
|
$ |
(75,485 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended December 31, 2018 |
Infrastructure |
PressurePumping |
Sand |
Drilling |
All Other |
Eliminations |
Total |
Revenue from external customers |
$ |
159,610 |
|
$ |
72,219 |
|
$ |
8,133 |
|
$ |
18,082 |
|
$ |
20,154 |
|
$ |
— |
|
$ |
278,198 |
|
Intersegment revenues |
— |
|
560 |
|
19,273 |
|
191 |
|
630 |
|
(20,654 |
) |
— |
|
Total revenue |
159,610 |
|
72,779 |
|
27,406 |
|
18,273 |
|
20,784 |
|
(20,654 |
) |
278,198 |
|
Cost of revenue, exclusive of
depreciation, depletion, amortization and accretion |
75,486 |
|
39,601 |
|
28,796 |
|
16,388 |
|
20,039 |
|
— |
|
180,310 |
|
Intersegment cost of
revenues |
— |
|
19,787 |
|
253 |
|
274 |
|
313 |
|
(20,627 |
) |
— |
|
Total cost of revenue |
75,486 |
|
59,388 |
|
29,049 |
|
16,662 |
|
20,352 |
|
(20,627 |
) |
180,310 |
|
Selling, general and
administrative |
9,689 |
|
1,768 |
|
1,170 |
|
1,137 |
|
1,019 |
|
— |
|
14,783 |
|
Depreciation, depletion,
amortization and accretion |
7,425 |
|
10,952 |
|
3,138 |
|
4,201 |
|
4,443 |
|
— |
|
30,159 |
|
Impairment of other long-lived
assets |
308 |
|
— |
|
— |
|
3,778 |
|
— |
|
— |
|
4,086 |
|
Operating income (loss) |
66,702 |
|
671 |
|
(5,951 |
) |
(7,505 |
) |
(5,030 |
) |
(27 |
) |
48,860 |
|
Interest expense, net |
82 |
|
177 |
|
40 |
|
122 |
|
112 |
|
— |
|
533 |
|
Other expense, net |
60 |
|
340 |
|
304 |
|
395 |
|
23 |
|
— |
|
1,122 |
|
Income (loss) before income
taxes |
$ |
66,560 |
|
$ |
154 |
|
$ |
(6,295 |
) |
$ |
(8,022 |
) |
$ |
(5,165 |
) |
$ |
(27 |
) |
$ |
47,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended September 30, 2019 |
Infrastructure |
Pressure Pumping |
Sand |
Drilling |
All Other |
Eliminations |
Total |
Revenue from external customers |
$ |
37,289 |
|
$ |
43,887 |
|
$ |
12,634 |
|
$ |
6,065 |
|
$ |
13,542 |
|
$ |
— |
|
$ |
113,417 |
|
Intersegment revenues |
— |
|
725 |
|
5,727 |
|
58 |
|
417 |
|
(6,927 |
) |
— |
|
Total revenue |
37,289 |
|
44,612 |
|
18,361 |
|
6,123 |
|
13,959 |
|
(6,927 |
) |
113,417 |
|
Cost of revenue, exclusive of
depreciation, depletion, amortization and accretion |
36,940 |
|
33,059 |
|
18,547 |
|
7,203 |
|
15,385 |
|
— |
|
111,134 |
|
Intersegment cost of
revenues |
— |
|
6,054 |
|
326 |
|
185 |
|
362 |
|
(6,927 |
) |
— |
|
Total cost of revenue |
36,940 |
|
39,113 |
|
18,873 |
|
7,388 |
|
15,747 |
|
(6,927 |
) |
111,134 |
|
Selling, general and
administrative |
7,322 |
|
3,669 |
|
1,314 |
|
910 |
|
1,208 |
|
— |
|
14,423 |
|
Depreciation, depletion,
amortization and accretion |
7,953 |
|
10,176 |
|
4,022 |
|
3,096 |
|
4,544 |
|
— |
|
29,791 |
|
Impairment of goodwill |
— |
|
— |
|
— |
|
— |
|
3,194 |
|
|
3,194 |
|
Impairment of other long-lived
assets |
— |
|
— |
|
— |
|
— |
|
3,348 |
|
— |
|
3,348 |
|
Operating income (loss) |
(14,926 |
) |
(8,346 |
) |
(5,848 |
) |
(5,271 |
) |
(14,082 |
) |
— |
|
(48,473 |
) |
Interest expense, net |
599 |
|
316 |
|
43 |
|
220 |
|
220 |
|
— |
|
1,398 |
|
Other expense, net |
(6,239 |
) |
(3 |
) |
99 |
|
(101 |
) |
(124 |
) |
— |
|
(6,368 |
) |
Income (loss) before income
taxes |
$ |
(9,286 |
) |
$ |
(8,659 |
) |
$ |
(5,990 |
) |
$ |
(5,390 |
) |
$ |
(14,178 |
) |
$ |
— |
|
$ |
(43,503 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended December 31, 2019 |
Infrastructure |
PressurePumping |
Sand |
Drilling |
All Other |
Eliminations |
Total |
Revenue from external customers |
$ |
214,449 |
|
$ |
241,972 |
|
$ |
69,794 |
|
$ |
31,728 |
|
$ |
67,069 |
|
$ |
— |
|
$ |
625,012 |
|
Intersegment revenues |
— |
|
4,378 |
|
29,796 |
|
498 |
|
2,231 |
|
(36,903 |
) |
— |
|
Total revenue |
214,449 |
|
246,350 |
|
99,590 |
|
32,226 |
|
69,300 |
|
(36,903 |
) |
625,012 |
|
Cost of revenue, exclusive of
depreciation, depletion, amortization and accretion |
171,756 |
|
177,997 |
|
87,637 |
|
35,963 |
|
70,435 |
|
— |
|
543,788 |
|
Intersegment cost of
revenues |
— |
|
31,727 |
|
2,542 |
|
846 |
|
1,848 |
|
(36,963 |
) |
— |
|
Total cost of revenue |
171,756 |
|
209,724 |
|
90,179 |
|
36,809 |
|
72,283 |
|
(36,963 |
) |
543,788 |
|
Selling, general and
administrative |
25,390 |
|
10,993 |
|
5,006 |
|
4,160 |
|
6,003 |
|
— |
|
51,552 |
|
Depreciation, depletion,
amortization and accretion |
31,451 |
|
40,240 |
|
14,050 |
|
13,255 |
|
18,037 |
|
— |
|
117,033 |
|
Impairment of goodwill |
434 |
|
23,423 |
|
2,684 |
|
— |
|
7,123 |
|
— |
|
33,664 |
|
Impairment of other long-lived
assets |
— |
|
— |
|
— |
|
2,955 |
|
4,403 |
|
— |
|
7,358 |
|
Operating (loss) income |
(14,582 |
) |
(38,030 |
) |
(12,329 |
) |
(24,953 |
) |
(38,549 |
) |
60 |
|
(128,383 |
) |
Interest expense, net |
1,689 |
|
1,283 |
|
193 |
|
907 |
|
886 |
|
— |
|
4,958 |
|
Other (income) expense,
net |
(42,787 |
) |
580 |
|
67 |
|
(109 |
) |
33 |
|
— |
|
(42,216 |
) |
Income (loss) before income
taxes |
$ |
26,516 |
|
$ |
(39,893 |
) |
$ |
(12,589 |
) |
$ |
(25,751 |
) |
$ |
(39,468 |
) |
$ |
60 |
|
$ |
(91,125 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
ended December 31, 2018 |
Infrastructure |
PressurePumping |
Sand |
Drilling |
All Other |
Eliminations |
Total |
Revenue from external customers |
$ |
1,082,371 |
|
$ |
362,491 |
|
$ |
100,816 |
|
$ |
66,237 |
|
$ |
78,169 |
|
$ |
— |
|
$ |
1,690,084 |
|
Intersegment revenues |
— |
|
7,001 |
|
67,459 |
|
416 |
|
5,541 |
|
(80,417 |
) |
— |
|
Total revenue |
1,082,371 |
|
369,492 |
|
168,275 |
|
66,653 |
|
83,710 |
|
(80,417 |
) |
1,690,084 |
|
Cost of revenue, exclusive of
depreciation, depletion, amortization and accretion |
608,017 |
|
223,296 |
|
126,714 |
|
60,248 |
|
75,529 |
|
— |
|
1,093,804 |
|
Intersegment cost of
revenues |
2,583 |
|
70,365 |
|
6,103 |
|
554 |
|
785 |
|
(80,390 |
) |
— |
|
Total cost of revenue |
610,600 |
|
293,661 |
|
132,817 |
|
60,802 |
|
76,314 |
|
(80,390 |
) |
1,093,804 |
|
Selling, general and
administrative |
27,126 |
|
29,761 |
|
6,218 |
|
5,343 |
|
4,649 |
|
— |
|
73,097 |
|
Depreciation, depletion,
amortization and accretion |
20,516 |
|
51,487 |
|
13,519 |
|
18,233 |
|
16,122 |
|
— |
|
119,877 |
|
Impairment of goodwill |
— |
|
— |
|
— |
|
— |
|
3,203 |
|
— |
|
3,203 |
|
Impairment of other long-lived
assets |
308 |
|
143 |
|
— |
|
3,966 |
|
1,235 |
|
— |
|
5,652 |
|
Operating income (loss) |
423,821 |
|
(5,560 |
) |
15,721 |
|
(21,691 |
) |
(17,813 |
) |
(27 |
) |
394,451 |
|
Interest expense, net |
423 |
|
1,171 |
|
234 |
|
835 |
|
524 |
|
— |
|
3,187 |
|
Other expense (income),
net |
573 |
|
434 |
|
525 |
|
461 |
|
43 |
|
— |
|
2,036 |
|
Income (loss) before income
taxes |
$ |
422,825 |
|
$ |
(7,165 |
) |
$ |
14,962 |
|
$ |
(22,987 |
) |
$ |
(18,380 |
) |
$ |
(27 |
) |
$ |
389,228 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 goodwill, impairment of other long-lived
assets, inventory obsolescence charges, acquisition related costs,
public offering costs, equity based compensation, stock based
compensation, 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, further adjusted
to add back interest on trade accounts receivable. 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 |
|
Twelve Months Ended |
|
December 31, |
|
September 30, |
|
December 31, |
Reconciliation of
Adjusted EBITDA to net (loss) income: |
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
Net (loss) income |
$ |
(60,779 |
) |
|
$ |
68,207 |
|
|
$ |
(35,709 |
) |
|
$ |
(79,044 |
) |
|
$ |
235,965 |
|
Depreciation, depletion,
accretion and amortization expense |
28,521 |
|
|
30,159 |
|
|
29,791 |
|
|
117,033 |
|
|
119,877 |
|
Impairment of goodwill |
30,470 |
|
|
— |
|
|
3,194 |
|
|
33,664 |
|
|
3,203 |
|
Impairment of other long-lived
assets |
4,010 |
|
|
4,086 |
|
|
3,348 |
|
|
7,358 |
|
|
5,652 |
|
Inventory obsolescence
charges |
— |
|
|
— |
|
|
1,349 |
|
|
1,349 |
|
|
— |
|
Acquisition related costs |
— |
|
|
61 |
|
|
— |
|
|
45 |
|
|
191 |
|
Public offering costs |
— |
|
|
(10 |
) |
|
— |
|
|
— |
|
|
982 |
|
Equity based compensation |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
17,487 |
|
Stock based compensation |
811 |
|
|
1,094 |
|
|
1,134 |
|
|
4,177 |
|
|
5,425 |
|
Interest expense, net |
1,486 |
|
|
533 |
|
|
1,398 |
|
|
4,958 |
|
|
3,187 |
|
Other (income) expense,
net |
(7,272 |
) |
|
1,122 |
|
|
(6,368 |
) |
|
(42,216 |
) |
|
2,036 |
|
(Benefit) provision for income
taxes |
(14,706 |
) |
|
(21,002 |
) |
|
(7,794 |
) |
|
(12,081 |
) |
|
153,263 |
|
Interest on trade accounts
receivable |
7,174 |
|
|
— |
|
|
5,896 |
|
|
42,040 |
|
|
— |
|
Adjusted EBITDA |
$ |
(10,285 |
) |
|
$ |
84,250 |
|
|
$ |
(3,761 |
) |
|
$ |
77,283 |
|
|
$ |
547,268 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infrastructure Services
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
September 30, |
|
December 31, |
Reconciliation of
Adjusted EBITDA to net (loss) income: |
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
Net (loss) income |
$ |
(14,005 |
) |
|
$ |
141,875 |
|
|
$ |
(10,763 |
) |
|
$ |
17,108 |
|
|
$ |
319,940 |
|
Depreciation and amortization
expense |
7,961 |
|
|
7,425 |
|
|
7,953 |
|
|
31,451 |
|
|
20,516 |
|
Impairment of goodwill |
434 |
|
|
— |
|
|
— |
|
|
434 |
|
|
— |
|
Impairment of other long-lived
assets |
— |
|
|
308 |
|
|
— |
|
|
— |
|
|
308 |
|
Acquisition related costs |
— |
|
|
61 |
|
|
— |
|
|
12 |
|
|
58 |
|
Public offering costs |
— |
|
|
(10 |
) |
|
— |
|
|
— |
|
|
473 |
|
Stock based compensation |
183 |
|
|
470 |
|
|
217 |
|
|
870 |
|
|
2,089 |
|
Interest expense |
665 |
|
|
82 |
|
|
599 |
|
|
1,689 |
|
|
423 |
|
Other (income) expense,
net |
(7,679 |
) |
|
60 |
|
|
(6,239 |
) |
|
(42,787 |
) |
|
573 |
|
Provision (benefit) for income
taxes |
2,738 |
|
|
(75,315 |
) |
|
1,477 |
|
|
9,408 |
|
|
102,885 |
|
Interest on trade accounts
receivable |
7,174 |
|
|
— |
|
|
5,896 |
|
|
42,040 |
|
|
— |
|
Adjusted EBITDA |
$ |
(2,529 |
) |
|
$ |
74,956 |
|
|
$ |
(860 |
) |
|
$ |
60,225 |
|
|
$ |
447,265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pressure Pumping Services
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
September 30, |
|
December 31, |
Reconciliation of
Adjusted EBITDA to net (loss) income: |
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
Net (loss) income |
$ |
(32,033 |
) |
|
$ |
154 |
|
|
$ |
(8,659 |
) |
|
$ |
(39,893 |
) |
|
$ |
(7,165 |
) |
Depreciation and amortization
expense |
9,996 |
|
|
10,952 |
|
|
10,176 |
|
|
40,240 |
|
|
51,487 |
|
Impairment of goodwill |
23,423 |
|
|
— |
|
|
— |
|
|
23,423 |
|
|
— |
|
Impairment of other long-lived
assets |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
143 |
|
Acquisition related costs |
— |
|
|
— |
|
|
— |
|
|
18 |
|
|
39 |
|
Public offering costs |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
264 |
|
Equity based compensation |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
17,487 |
|
Stock based compensation |
297 |
|
|
318 |
|
|
503 |
|
|
1,700 |
|
|
1,612 |
|
Interest expense |
318 |
|
|
177 |
|
|
316 |
|
|
1,283 |
|
|
1,171 |
|
Other (income) expense,
net |
574 |
|
|
340 |
|
|
(3 |
) |
|
580 |
|
|
434 |
|
Adjusted EBITDA |
$ |
2,575 |
|
|
$ |
11,941 |
|
|
$ |
2,333 |
|
|
$ |
27,351 |
|
|
$ |
65,472 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Sand Proppant Services
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
September 30, |
|
December 31, |
Reconciliation of
Adjusted EBITDA to net (loss) income: |
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
Net (loss) income |
$ |
(9,367 |
) |
|
$ |
(6,295 |
) |
|
$ |
(5,990 |
) |
|
$ |
(12,589 |
) |
|
$ |
14,962 |
|
Depreciation, depletion,
accretion and amortization expense |
2,627 |
|
|
3,138 |
|
|
4,022 |
|
|
14,050 |
|
|
13,519 |
|
Impairment of goodwill |
2,684 |
|
|
— |
|
|
— |
|
|
2,684 |
|
|
— |
|
Acquisition related costs |
— |
|
|
— |
|
|
— |
|
|
8 |
|
|
(38 |
) |
Public offering costs |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
144 |
|
Stock based compensation |
156 |
|
|
181 |
|
|
216 |
|
|
812 |
|
|
783 |
|
Interest expense |
48 |
|
|
40 |
|
|
43 |
|
|
193 |
|
|
234 |
|
Other expense (income),
net |
— |
|
|
304 |
|
|
99 |
|
|
67 |
|
|
525 |
|
Adjusted EBITDA |
$ |
(3,852 |
) |
|
$ |
(2,632 |
) |
|
$ |
(1,610 |
) |
|
$ |
5,225 |
|
|
$ |
30,129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Drilling Services
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
September 30, |
|
December 31, |
Reconciliation of
Adjusted EBITDA to net (loss) income: |
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
Net (loss) income |
$ |
(10,070 |
) |
|
$ |
(8,022 |
) |
|
$ |
(5,390 |
) |
|
$ |
(25,751 |
) |
|
$ |
(22,987 |
) |
Depreciation, depletion,
accretion and amortization expense |
3,389 |
|
|
4,201 |
|
|
3,096 |
|
|
13,255 |
|
|
18,233 |
|
Impairment of other long-lived
assets |
2,955 |
|
|
3,778 |
|
|
— |
|
|
2,955 |
|
|
3,966 |
|
Acquisition related costs |
— |
|
|
— |
|
|
— |
|
|
2 |
|
|
— |
|
Public offering costs |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
45 |
|
Stock based compensation |
82 |
|
|
36 |
|
|
91 |
|
|
361 |
|
|
576 |
|
Interest expense |
227 |
|
|
122 |
|
|
220 |
|
|
907 |
|
|
835 |
|
Other expense (income),
net |
14 |
|
|
395 |
|
|
(101 |
) |
|
(109 |
) |
|
461 |
|
Adjusted EBITDA |
$ |
(3,403 |
) |
|
$ |
510 |
|
|
$ |
(2,084 |
) |
|
$ |
(8,380 |
) |
|
$ |
1,129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Services(a)
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
September 30, |
|
December 31, |
Reconciliation of
Adjusted EBITDA to net loss: |
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
Net loss |
$ |
4,695 |
|
|
$ |
(59,478 |
) |
|
$ |
(4,907 |
) |
|
$ |
(17,980 |
) |
|
$ |
(68,758 |
) |
Depreciation and amortization
expense |
4,548 |
|
|
4,443 |
|
|
4,544 |
|
|
18,037 |
|
|
16,122 |
|
Impairment of goodwill |
3,929 |
|
|
— |
|
|
3,194 |
|
|
7,123 |
|
|
3,203 |
|
Impairment of other long-lived
assets |
1,055 |
|
|
— |
|
|
3,348 |
|
|
4,403 |
|
|
1,235 |
|
Inventory obsolescence
charges |
— |
|
|
— |
|
|
1,349 |
|
|
1,349 |
|
|
— |
|
Acquisition related costs |
— |
|
|
— |
|
|
— |
|
|
5 |
|
|
132 |
|
Public offering costs |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
56 |
|
Stock based compensation |
93 |
|
|
89 |
|
|
107 |
|
|
434 |
|
|
365 |
|
Interest expense, net |
228 |
|
|
112 |
|
|
220 |
|
|
886 |
|
|
524 |
|
Other (income) expense,
net |
(181 |
) |
|
23 |
|
|
(124 |
) |
|
33 |
|
|
43 |
|
(Benefit) provision for income
taxes |
(17,443 |
) |
|
54,313 |
|
|
(9,271 |
) |
|
(21,488 |
) |
|
50,378 |
|
Adjusted EBITDA |
$ |
(3,076 |
) |
|
$ |
(498 |
) |
|
$ |
(1,540 |
) |
|
$ |
(7,198 |
) |
|
$ |
3,300 |
|
a. Includes results for Mammoth's coil tubing, pressure
control, flowback, cementing, acidizing, equipment rentals, crude
oil hauling, full service transportation and remote accommodations
services and corporate related activities. The Company's corporate
related activities do not generate revenue.
Adjusted Net (Loss) Income and Adjusted (Loss) Earnings
per Share
Adjusted net (loss) income and adjusted basic and diluted (loss)
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, such as impairment expense and equity
based compensation, that may not be indicative of the Company's
ongoing operating results. Adjusted net (loss) income and adjusted
(loss) earnings per share should not be considered in isolation or
as a substitute for net (loss) income and (loss) 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 (loss) income and adjusted
(loss) earnings per share to the GAAP financial measures of net
(loss) income and (loss) earnings per share for the periods
specified.
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
September 30, |
|
December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2019 |
|
2018 |
|
(in thousands, except per share amounts) |
Net (loss) income, as reported |
$ |
(60,779 |
) |
|
$ |
68,207 |
|
|
$ |
(35,709 |
) |
|
$ |
(79,044 |
) |
|
$ |
235,965 |
|
Impairment of goodwill |
30,470 |
|
|
— |
|
|
3,194 |
|
|
33,664 |
|
|
3,203 |
|
Impairment of other long-lived assets |
4,010 |
|
|
4,086 |
|
|
3,348 |
|
|
7,358 |
|
|
5,652 |
|
Equity based compensation |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
17,487 |
|
Adjusted net (loss)
income |
$ |
(26,299 |
) |
|
$ |
72,293 |
|
|
$ |
(29,167 |
) |
|
$ |
(38,022 |
) |
|
$ |
262,307 |
|
|
|
|
|
|
|
|
|
|
|
Basic (loss) earnings per
share, as reported |
$ |
(1.35 |
) |
|
$ |
1.52 |
|
|
$ |
(0.79 |
) |
|
$ |
(1.76 |
) |
|
$ |
5.27 |
|
Impairment of goodwill |
0.68 |
|
|
— |
|
|
0.07 |
|
|
0.75 |
|
|
0.07 |
|
Impairment of other long-lived assets |
0.09 |
|
|
0.09 |
|
|
0.07 |
|
|
0.16 |
|
|
0.13 |
|
Equity based compensation |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
0.39 |
|
Adjusted basic (loss) earnings
per share |
$ |
(0.58 |
) |
|
$ |
1.61 |
|
|
$ |
(0.65 |
) |
|
$ |
(0.85 |
) |
|
$ |
5.86 |
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) earnings per
share, as reported |
$ |
(1.35 |
) |
|
$ |
1.51 |
|
|
$ |
(0.79 |
) |
|
$ |
(1.76 |
) |
|
$ |
5.24 |
|
Impairment of goodwill |
0.68 |
|
|
— |
|
|
0.07 |
|
|
0.75 |
|
|
0.07 |
|
Impairment of other long-lived assets |
0.09 |
|
|
0.09 |
|
|
0.07 |
|
|
0.16 |
|
|
0.13 |
|
Equity based compensation |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
0.39 |
|
Adjusted diluted (loss)
earnings per share |
$ |
(0.58 |
) |
|
$ |
1.60 |
|
|
$ |
(0.65 |
) |
|
$ |
(0.85 |
) |
|
$ |
5.83 |
|
Mammoth Energy Services (NASDAQ:TUSK)
Historical Stock Chart
From Mar 2024 to Apr 2024
Mammoth Energy Services (NASDAQ:TUSK)
Historical Stock Chart
From Apr 2023 to Apr 2024