Mammoth Energy Services, Inc. (“Mammoth” or the “Company”) (NASDAQ:
TUSK) today reported financial and operational results for the
third quarter ended September 30, 2020.
Financial Highlights for the Third Quarter
2020:
Total revenue was $70.5 million for the three months ended
September 30, 2020, up 17% from $60.1 million for the three
months ended June 30, 2020 and down 38% from $113.4 million
for the three months ended September 30, 2019.
Net income for the three months ended September 30, 2020
was $3.4 million, or $0.07 per fully diluted share, as compared to
a net loss of $15.2 million, or $0.33 per fully diluted share, for
the three months ended June 30, 2020 and a net loss of $35.7
million, or $0.79 per fully diluted share, for the three months
ended September 30, 2019.
Adjusted EBITDA (as defined and reconciled below) was $22.1
million for the three months ended September 30, 2020, as
compared to $6.9 million for the three months ended June 30,
2020 and ($3.8) million for the three months ended
September 30, 2019.
Arty Straehla, Mammoth's Chief Executive Officer, stated, “The
third quarter financial results showed the earnings power of our
infrastructure segment with gross margin increasing to 34% and
Adjusted EBITDA, excluding interest on trade accounts receivable,
in this segment growing more than 350% quarter-over-quarter. The
initiatives taken by our infrastructure management team have laid a
solid foundation for growth in the years to come. While the
oilfield portion of our service offerings continue to experience
significant challenges, we continue to maintain our oilfield
equipment and plan to be ready to ramp up our oilfield service
offerings when oilfield demand, pricing and margins
strengthen.”
Infrastructure Services
Mammoth's infrastructure services division contributed revenue
of $44.0 million, or approximately 62% of Mammoth's total revenue,
for the three months ended September 30, 2020, an increase of
44% from $30.6 million for the three months ended June 30,
2020 and an increase of 18% from $37.3 million for the three months
ended September 30, 2019 reflecting a strong market.
As of September 30, 2020, Mammoth had approximately 120
crews operating in the continental United States.
Pressure Pumping Services
Mammoth's pressure pumping services division contributed revenue
(inclusive of inter-segment revenue) of $15.8 million on 449 stages
for the three months ended September 30, 2020, a decrease of
5% from $16.6 million on 658 stages for the three months ended
June 30, 2020 and a decrease of 65% from $44.6 million on 783
stages for the three months ended September 30, 2019. On
average, 0.9 of the Company's fleets were active for the three
months ended September 30, 2020, compared to average
utilization of 1.9 fleets during the three months ended
June 30, 2020 and an average utilization of 1.2 fleets during
the three months ended September 30, 2019.
Natural Sand Proppant Services
Mammoth's natural sand proppant services division contributed
revenue (inclusive of inter-segment revenue) of $6.0 million for
the three months ended September 30, 2020, a decrease of 3%
from $6.2 million for the three months ended June 30, 2020 and
a decrease of 67% from $18.4 million for the three months ended
September 30, 2019. The Company sold approximately 68,000 tons
of sand during the three months ended September 30, 2020, a
decrease of 85% from approximately 456,000 tons sold during the
three months ended June 30, 2020 and a decrease of 17% from
approximately 82,000 tons sold during the three months ended
September 30, 2019. The Company's average sales price for the
sand sold during the three months ended September 30, 2020 was
$15.59 per ton, a slight increase from the $15.18 per ton average
sales price during the three months ended June 30, 2020 and a
decrease from the $26.84 per ton average sales price during the
three months ended September 30, 2019.
Drilling Services
Mammoth's drilling services division contributed revenue
(inclusive of inter-segment revenue) of $1.2 million for the three
months ended September 30, 2020, a decrease of 8% from $1.3
million for the three months ended June 30, 2020 and a
decrease of 80% from $6.1 million for the three months ended
September 30, 2019. The decline is primarily due to reduced
utilization. As a result of market conditions, the Company
temporarily shut down its contract land drilling operations
beginning in December 2019 and its rig hauling operations beginning
in April 2020.
Other Services
Mammoth's other services, including coil tubing, pressure
control, flowback, cementing, acidizing, equipment rentals, crude
oil hauling, full service transportation, remote accommodations,
oilfield equipment manufacturing and infrastructure engineering and
design services, contributed revenue (inclusive of inter-segment
revenue) of $4.2 million for the three months ended
September 30, 2020, a decrease of 35% from $6.5 million for
the three months ended June 30, 2020 and a decrease of 70%
from $14.0 million for the three months ended September 30,
2019.
Selling, General and Administrative
Expenses
Selling, general and administrative (“SG&A”) expenses were
$12.2 million for the three months ended September 30, 2020,
as compared to $13.7 million for the three months ended
June 30, 2020 and $14.4 million for the three months ended
September 30, 2019.
Following is a breakout of SG&A expense (in thousands):
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
June 30, |
|
September 30, |
|
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
Cash expenses: |
|
|
|
|
|
|
|
|
|
Compensation and benefits |
$ |
3,449 |
|
|
$ |
4,777 |
|
|
$ |
3,720 |
|
|
$ |
11,138 |
|
|
$ |
16,161 |
|
Professional services |
5,651 |
|
|
6,104 |
|
|
6,147 |
|
|
15,335 |
|
|
12,827 |
|
Other(a) |
2,163 |
|
|
1,665 |
|
|
2,100 |
|
|
6,572 |
|
|
8,290 |
|
Total cash SG&A expense |
11,263 |
|
|
12,546 |
|
|
11,967 |
|
|
33,045 |
|
|
37,278 |
|
Non-cash expenses: |
|
|
|
|
|
|
|
|
|
Bad debt provision |
626 |
|
|
964 |
|
|
1,624 |
|
|
2,306 |
|
|
1,230 |
|
Stock based compensation |
291 |
|
|
913 |
|
|
135 |
|
|
1,326 |
|
|
2,705 |
|
Total non-cash SG&A expense |
917 |
|
|
1,877 |
|
|
1,759 |
|
|
3,632 |
|
|
3,935 |
|
Total SG&A expense |
$ |
12,180 |
|
|
$ |
14,423 |
|
|
$ |
13,726 |
|
|
$ |
36,677 |
|
|
$ |
41,213 |
|
a. Includes travel-related costs,
information technology expenses, rent, utilities and other general
and administrative-related costs.
SG&A expenses, as a percentage of total revenue, were 17%
for the three months ended September 30, 2020, as compared to
23% for the three months ended June 30, 2020 and 13% for the
three months ended September 30, 2019.
Liquidity
As of September 30, 2020, Mammoth had cash on hand of $13.9
million and outstanding borrowings under its revolving credit
facility of $89.8 million. As of September 30, 2020, the
Company had $18.0 million of available borrowing capacity under its
revolving credit facility. This available borrowing capacity
reflects (i) a minimum excess availability covenant of 10% of the
maximum revolving advance amount and (ii) $9.0 million of
outstanding letters of credit. As of September 30, 2020,
Mammoth had total liquidity of $31.9 million.
As of October 28, 2020, Mammoth had cash on hand of $12.4
million and outstanding borrowings under its revolving credit
facility of $88.4 million. As of October 28, 2020, the Company
had $28.1 million of available borrowing capacity under its
revolving credit facility, after giving effect to $13.3 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 |
|
Nine Months Ended |
|
September 30, |
|
June 30, |
|
September 30, |
|
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
Infrastructure services(a) |
$ |
178 |
|
|
$ |
122 |
|
|
$ |
43 |
|
|
$ |
298 |
|
|
$ |
5,553 |
|
Pressure pumping
services(b) |
698 |
|
|
2,963 |
|
|
2,450 |
|
|
3,752 |
|
|
14,305 |
|
Natural sand proppant
services(c) |
194 |
|
|
728 |
|
|
354 |
|
|
1,069 |
|
|
2,703 |
|
Drilling services(d) |
131 |
|
|
146 |
|
|
72 |
|
|
211 |
|
|
3,073 |
|
Other(e) |
324 |
|
|
711 |
|
|
5 |
|
|
619 |
|
|
9,256 |
|
Total capital
expenditures |
$ |
1,525 |
|
|
$ |
4,670 |
|
|
$ |
2,924 |
|
|
$ |
5,949 |
|
|
$ |
34,890 |
|
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 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 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.
Conference Call Information
Mammoth will host a conference call on Thursday, October 29,
2020 at 4:00 p.m. CDT (5:00 p.m. EDT) to discuss its third quarter
2020 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 2595308. 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: infrastructure services, pressure pumping
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 severity and duration of the COVID-19 pandemic,
related global and national health concerns and economic
repercussions and the resulting negative impact on demand for our
services; the current significant surplus in the supply of oil and
the ability of the OPEC+ countries to agree on and comply with
supply limitations; the duration and magnitude of the unprecedented
disruption in the oil and gas industry currently resulting from the
impact of the foregoing factors, which is negatively impacting our
business; operational challenges relating to the COVID-19 pandemic
and efforts to mitigate the spread of the virus, including
logistical challenges, protecting the health and well-being of our
employees, remote work arrangements, performance of contracts and
supply chain disruptions; 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 and contracts for our pressure pumping
services and natural sand proppant services; 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; 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 |
|
September 30, |
|
December 31, |
|
|
2020 |
|
2019 |
CURRENT ASSETS |
|
(in thousands) |
Cash and cash equivalents |
|
$ |
13,884 |
|
|
|
$ |
5,872 |
|
|
Accounts receivable, net |
|
373,160 |
|
|
|
363,053 |
|
|
Receivables from related parties |
|
38,676 |
|
|
|
7,523 |
|
|
Inventories |
|
13,297 |
|
|
|
17,483 |
|
|
Prepaid expenses |
|
3,363 |
|
|
|
12,354 |
|
|
Other current assets |
|
4,413 |
|
|
|
695 |
|
|
Total current assets |
|
446,793 |
|
|
|
406,980 |
|
|
|
|
|
|
|
Property, plant and equipment,
net |
|
270,624 |
|
|
|
352,772 |
|
|
Sand reserves |
|
66,093 |
|
|
|
68,351 |
|
|
Operating lease right-of-use
assets |
|
25,927 |
|
|
|
43,446 |
|
|
Intangible assets, net -
customer relationships |
|
452 |
|
|
|
583 |
|
|
Intangible assets, net - trade
names |
|
4,576 |
|
|
|
5,205 |
|
|
Goodwill |
|
12,608 |
|
|
|
67,581 |
|
|
Other non-current assets |
|
4,026 |
|
|
|
7,467 |
|
|
Total assets |
|
$ |
831,099 |
|
|
|
$ |
952,385 |
|
|
LIABILITIES AND EQUITY |
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
Accounts payable |
|
$ |
33,428 |
|
|
|
$ |
39,220 |
|
|
Payables to related parties |
|
18 |
|
|
|
526 |
|
|
Accrued expenses and other current liabilities |
|
35,482 |
|
|
|
40,754 |
|
|
Current operating lease liability |
|
10,657 |
|
|
|
16,432 |
|
|
Income taxes payable |
|
31,789 |
|
|
|
33,465 |
|
|
Total current liabilities |
|
111,374 |
|
|
|
130,397 |
|
|
|
|
|
|
|
Long-term debt |
|
89,800 |
|
|
|
80,000 |
|
|
Deferred income tax
liabilities |
|
29,423 |
|
|
|
36,873 |
|
|
Long-term operating lease
liability |
|
15,291 |
|
|
|
27,102 |
|
|
Asset retirement
obligation |
|
4,683 |
|
|
|
4,241 |
|
|
Other liabilities |
|
6,357 |
|
|
|
5,031 |
|
|
Total liabilities |
|
256,928 |
|
|
|
283,644 |
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
Equity: |
|
|
|
|
Common stock, $0.01 par value, 200,000,000 shares authorized,
45,765,533 and 45,108,545 issued and outstanding at September 30,
2020 and December 31, 2019 |
|
458 |
|
|
|
451 |
|
|
Additional paid in capital |
|
536,685 |
|
|
|
535,094 |
|
|
Retained earnings |
|
40,756 |
|
|
|
136,502 |
|
|
Accumulated other comprehensive loss |
|
(3,728 |
) |
|
|
(3,306 |
) |
|
Total equity |
|
574,171 |
|
|
|
668,741 |
|
|
Total liabilities and equity |
|
$ |
831,099 |
|
|
|
$ |
952,385 |
|
|
|
|
|
|
|
|
|
|
|
|
|
MAMMOTH ENERGY SERVICES,
INC.CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
June 30, |
|
September 30, |
|
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
|
|
|
(in thousands, except per share amounts) |
REVENUE |
|
Services revenue |
$ |
55,279 |
|
|
|
$ |
85,783 |
|
|
|
$ |
44,878 |
|
|
|
$ |
169,002 |
|
|
|
$ |
394,645 |
|
|
Services revenue - related parties |
8,565 |
|
|
|
15,000 |
|
|
|
8,650 |
|
|
|
35,228 |
|
|
|
95,910 |
|
|
Product revenue |
4,815 |
|
|
|
9,710 |
|
|
|
4,706 |
|
|
|
18,171 |
|
|
|
40,381 |
|
|
Product revenue - related parties |
1,875 |
|
|
|
2,924 |
|
|
|
1,875 |
|
|
|
5,625 |
|
|
|
26,439 |
|
|
Total revenue |
70,534 |
|
|
|
113,417 |
|
|
|
60,109 |
|
|
|
228,026 |
|
|
|
557,375 |
|
|
|
|
|
|
|
|
|
|
|
|
COST AND EXPENSES |
|
|
|
|
|
|
|
|
|
Services cost of revenue (exclusive of depreciation, depletion,
amortization and accretion of $20,424, $25,749, $21,750, $65,728
and $77,028, respectively, for the three months ended September 30,
2020, September 30, 2019 and June 30, 2020 and nine months ended
September 30, 2020 and 2019) |
41,445 |
|
|
|
91,813 |
|
|
|
42,255 |
|
|
|
154,397 |
|
|
|
382,607 |
|
|
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 September 30,
2020, September 30, 2019 and June 30, 2020 and nine months ended
September 30, 2020 and 2019) |
131 |
|
|
|
774 |
|
|
|
97 |
|
|
|
329 |
|
|
|
4,138 |
|
|
Product cost of revenue (exclusive of depreciation, depletion,
amortization and accretion of $2,689, $4,019, $2,346, $7,344 and
$11,414, respectively, for the three months ended September 30,
2020, September 30, 2019 and June 30, 2020 and nine months ended
September 30, 2020 and 2019) |
4,353 |
|
|
|
18,547 |
|
|
|
6,401 |
|
|
|
21,862 |
|
|
|
81,475 |
|
|
Selling, general and administrative |
11,979 |
|
|
|
14,029 |
|
|
|
13,528 |
|
|
|
36,063 |
|
|
|
39,726 |
|
|
Selling, general and administrative - related parties |
201 |
|
|
|
394 |
|
|
|
198 |
|
|
|
614 |
|
|
|
1,487 |
|
|
Depreciation, depletion, amortization and accretion |
23,132 |
|
|
|
29,791 |
|
|
|
24,116 |
|
|
|
73,130 |
|
|
|
88,512 |
|
|
Impairment of goodwill |
— |
|
|
|
3,194 |
|
|
|
— |
|
|
|
54,973 |
|
|
|
3,194 |
|
|
Impairment of other long-lived assets |
— |
|
|
|
3,348 |
|
|
|
— |
|
|
|
12,897 |
|
|
|
3,348 |
|
|
Total cost and expenses |
81,241 |
|
|
|
161,890 |
|
|
|
86,595 |
|
|
|
354,265 |
|
|
|
604,487 |
|
|
Operating loss |
(10,707 |
) |
|
|
(48,473 |
) |
|
|
(26,486 |
) |
|
|
(126,239 |
) |
|
|
(47,112 |
) |
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
Interest expense, net |
(1,098 |
) |
|
|
(1,398 |
) |
|
|
(1,471 |
) |
|
|
(4,207 |
) |
|
|
(3,472 |
) |
|
Other, net |
7,943 |
|
|
|
6,368 |
|
|
|
8,137 |
|
|
|
23,489 |
|
|
|
34,944 |
|
|
Other, net - related parties |
1,099 |
|
|
|
— |
|
|
|
1,133 |
|
|
|
2,232 |
|
|
|
— |
|
|
Total other income |
7,944 |
|
|
|
4,970 |
|
|
|
7,799 |
|
|
|
21,514 |
|
|
|
31,472 |
|
|
Loss before income taxes |
(2,763 |
) |
|
|
(43,503 |
) |
|
|
(18,687 |
) |
|
|
(104,725 |
) |
|
|
(15,640 |
) |
|
(Benefit) provision for income
taxes |
(6,193 |
) |
|
|
(7,794 |
) |
|
|
(3,482 |
) |
|
|
(8,979 |
) |
|
|
2,625 |
|
|
Net income (loss) |
$ |
3,430 |
|
|
|
$ |
(35,709 |
) |
|
|
$ |
(15,205 |
) |
|
|
$ |
(95,746 |
) |
|
|
$ |
(18,265 |
) |
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE INCOME
(LOSS) |
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment, net of tax of ($95),
($49), ($150), $116 and $134, respectively, for the three months
ended September 30, 2020, September 30, 2019 and June 30, 2020 and
nine months ended September 30, 2020 and 2019 |
324 |
|
|
|
(213 |
) |
|
|
668 |
|
|
|
(422 |
) |
|
|
493 |
|
|
Comprehensive income
(loss) |
$ |
3,754 |
|
|
|
$ |
(35,922 |
) |
|
|
$ |
(14,537 |
) |
|
|
$ |
(96,168 |
) |
|
|
$ |
(17,772 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share
(basic) |
$ |
0.07 |
|
|
|
$ |
(0.79 |
) |
|
|
$ |
(0.33 |
) |
|
|
$ |
(2.10 |
) |
|
|
$ |
(0.41 |
) |
|
Net income (loss) per share
(diluted) |
$ |
0.07 |
|
|
|
$ |
(0.79 |
) |
|
|
$ |
(0.33 |
) |
|
|
$ |
(2.10 |
) |
|
|
$ |
(0.41 |
) |
|
Weighted average number of
shares outstanding (basic) |
45,764 |
|
|
|
45,020 |
|
|
|
45,727 |
|
|
|
45,603 |
|
|
|
44,984 |
|
|
Weighted average number of
shares outstanding (diluted) |
46,571 |
|
|
|
45,020 |
|
|
|
45,727 |
|
|
|
45,603 |
|
|
|
44,984 |
|
|
Dividends declared per
share |
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
0.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MAMMOTH ENERGY SERVICES,
INC.CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Nine Months Ended |
|
September 30, |
|
2020 |
|
2019 |
|
|
|
(in thousands) |
Cash flows from operating
activities: |
|
|
|
Net loss |
$ |
(95,746 |
) |
|
|
$ |
(18,265 |
) |
|
Adjustments to reconcile net loss to cash provided by (used in)
operating activities: |
|
|
|
Stock based compensation |
1,598 |
|
|
|
3,367 |
|
|
Depreciation, depletion, accretion and amortization |
73,130 |
|
|
|
88,512 |
|
|
Amortization of coil tubing strings |
359 |
|
|
|
1,236 |
|
|
Amortization of debt origination costs |
703 |
|
|
|
245 |
|
|
Bad debt expense |
2,306 |
|
|
|
1,230 |
|
|
(Gain) loss on disposal of property and equipment |
(927 |
) |
|
|
245 |
|
|
Impairment of goodwill |
54,973 |
|
|
|
3,194 |
|
|
Impairment of other long-lived assets |
12,897 |
|
|
|
3,348 |
|
|
Inventory obsolescence |
— |
|
|
|
1,349 |
|
|
Deferred income taxes |
(7,334 |
) |
|
|
(32,183 |
) |
|
Other |
581 |
|
|
|
(539 |
) |
|
Changes in assets and liabilities: |
|
|
|
Accounts receivable, net |
(11,707 |
) |
|
|
(33,042 |
) |
|
Receivables from related parties |
(31,152 |
) |
|
|
2,622 |
|
|
Inventories |
3,827 |
|
|
|
1,415 |
|
|
Prepaid expenses and other assets |
8,803 |
|
|
|
3,713 |
|
|
Accounts payable |
(5,211 |
) |
|
|
(27,187 |
) |
|
Payables to related parties |
(508 |
) |
|
|
117 |
|
|
Accrued expenses and other liabilities |
(3,166 |
) |
|
|
(19,121 |
) |
|
Income taxes payable |
(1,644 |
) |
|
|
(72,501 |
) |
|
Net cash provided by (used in)
operating activities |
1,782 |
|
|
|
(92,245 |
) |
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
Purchases of property and equipment |
(5,873 |
) |
|
|
(34,637 |
) |
|
Purchases of property and equipment from related parties |
(76 |
) |
|
|
(253 |
) |
|
Contributions to equity investee |
— |
|
|
|
(680 |
) |
|
Proceeds from disposal of property and equipment |
4,859 |
|
|
|
2,491 |
|
|
Net cash used in investing
activities |
(1,090 |
) |
|
|
(33,079 |
) |
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
Borrowings from lines of credit |
30,800 |
|
|
|
138,000 |
|
|
Repayments of lines of credit |
(21,000 |
) |
|
|
(58,000 |
) |
|
Dividends paid |
— |
|
|
|
(11,219 |
) |
|
Principal payments on financing leases and equipment financing
notes |
(1,423 |
) |
|
|
(1,534 |
) |
|
Debt issuance costs |
(1,000 |
) |
|
|
— |
|
|
Net cash provided by financing
activities |
7,377 |
|
|
|
67,247 |
|
|
Effect of foreign exchange
rate on cash |
(57 |
) |
|
|
50 |
|
|
Net change in cash and cash
equivalents |
8,012 |
|
|
|
(58,027 |
) |
|
Cash and cash equivalents at
beginning of period |
5,872 |
|
|
|
67,625 |
|
|
Cash and cash equivalents at
end of period |
$ |
13,884 |
|
|
|
$ |
9,598 |
|
|
|
|
|
|
Supplemental disclosure of
cash flow information: |
|
|
|
Cash paid for interest |
$ |
3,637 |
|
|
|
$ |
3,280 |
|
|
Cash paid for income taxes |
$ |
13 |
|
|
|
$ |
116,448 |
|
|
Supplemental disclosure of
non-cash transactions: |
|
|
|
Purchases of property and equipment included in accounts
payable |
$ |
2,032 |
|
|
|
$ |
1,203 |
|
|
|
|
|
|
|
|
|
|
|
|
MAMMOTH ENERGY SERVICES,
INC.SEGMENT INCOME STATEMENTS(in thousands)
Three
months ended September 30, 2020 |
Infrastructure |
Pressure Pumping |
Sand |
Drilling |
All Other |
Eliminations |
Total |
Revenue from external customers |
$ |
44,009 |
|
|
$ |
15,738 |
|
|
$ |
6,031 |
|
|
$ |
1,193 |
|
|
$ |
3,563 |
|
|
$ |
— |
|
|
$ |
70,534 |
|
|
Intersegment revenues |
— |
|
|
53 |
|
|
— |
|
|
26 |
|
|
672 |
|
|
(751 |
) |
|
— |
|
|
Total revenue |
44,009 |
|
|
15,791 |
|
|
6,031 |
|
|
1,219 |
|
|
4,235 |
|
|
(751 |
) |
|
70,534 |
|
|
Cost of revenue, exclusive of
depreciation, depletion, amortization and accretion |
29,074 |
|
|
6,881 |
|
|
3,784 |
|
|
1,964 |
|
|
4,226 |
|
|
— |
|
|
45,929 |
|
|
Intersegment cost of
revenues |
162 |
|
|
449 |
|
|
26 |
|
|
— |
|
|
114 |
|
|
(751 |
) |
|
— |
|
|
Total cost of revenue |
29,236 |
|
|
7,330 |
|
|
3,810 |
|
|
1,964 |
|
|
4,340 |
|
|
(751 |
) |
|
45,929 |
|
|
Selling, general and
administrative |
7,377 |
|
|
1,744 |
|
|
1,033 |
|
|
382 |
|
|
1,644 |
|
|
— |
|
|
12,180 |
|
|
Depreciation, depletion,
amortization and accretion |
7,589 |
|
|
7,196 |
|
|
2,693 |
|
|
2,323 |
|
|
3,331 |
|
|
— |
|
|
23,132 |
|
|
Operating loss |
(193 |
) |
|
(479 |
) |
|
(1,505 |
) |
|
(3,450 |
) |
|
(5,080 |
) |
|
— |
|
|
(10,707 |
) |
|
Interest expense, net |
628 |
|
|
269 |
|
|
54 |
|
|
60 |
|
|
87 |
|
|
— |
|
|
1,098 |
|
|
Other (income) expense,
net |
(9,204 |
) |
|
(1,156 |
) |
|
1,792 |
|
|
20 |
|
|
(494 |
) |
|
— |
|
|
(9,042 |
) |
|
Income (loss) before income
taxes |
$ |
8,383 |
|
|
$ |
408 |
|
|
$ |
(3,351 |
) |
|
$ |
(3,530 |
) |
|
$ |
(4,673 |
) |
|
$ |
— |
|
|
$ |
(2,763 |
) |
|
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 loss |
(14,926 |
) |
|
(8,346 |
) |
|
(5,848 |
) |
|
(5,271 |
) |
|
(14,082 |
) |
|
— |
|
|
(48,473 |
) |
|
Interest expense, net |
599 |
|
|
316 |
|
|
43 |
|
|
220 |
|
|
220 |
|
|
— |
|
|
1,398 |
|
|
Other (income) expense,
net |
(6,239 |
) |
|
(3 |
) |
|
99 |
|
|
(100 |
) |
|
(125 |
) |
|
— |
|
|
(6,368 |
) |
|
Loss before income taxes |
$ |
(9,286 |
) |
|
$ |
(8,659 |
) |
|
$ |
(5,990 |
) |
|
$ |
(5,391 |
) |
|
$ |
(14,177 |
) |
|
$ |
— |
|
|
$ |
(43,503 |
) |
|
Three
months ended June 30, 2020 |
Infrastructure |
Pressure Pumping |
Sand |
Drilling |
All Other |
Eliminations |
Total |
Revenue from external customers |
$ |
30,579 |
|
|
$ |
16,125 |
|
|
$ |
6,237 |
|
|
$ |
1,250 |
|
|
$ |
5,918 |
|
|
$ |
— |
|
|
$ |
60,109 |
|
|
Intersegment revenues |
— |
|
|
446 |
|
|
— |
|
|
25 |
|
|
580 |
|
|
(1,051 |
) |
|
— |
|
|
Total revenue |
30,579 |
|
|
16,571 |
|
|
6,237 |
|
|
1,275 |
|
|
6,498 |
|
|
(1,051 |
) |
|
60,109 |
|
|
Cost of revenue, exclusive of
depreciation, depletion, amortization and accretion |
25,368 |
|
|
8,744 |
|
|
6,025 |
|
|
2,027 |
|
|
6,589 |
|
|
— |
|
|
48,753 |
|
|
Intersegment cost of
revenues |
27 |
|
|
333 |
|
|
28 |
|
|
21 |
|
|
642 |
|
|
(1,051 |
) |
|
— |
|
|
Total cost of revenue |
25,395 |
|
|
9,077 |
|
|
6,053 |
|
|
2,048 |
|
|
7,231 |
|
|
(1,051 |
) |
|
48,753 |
|
|
Selling, general and
administrative |
8,037 |
|
|
1,477 |
|
|
1,357 |
|
|
1,331 |
|
|
1,524 |
|
|
— |
|
|
13,726 |
|
|
Depreciation, depletion,
amortization and accretion |
7,816 |
|
|
7,685 |
|
|
2,348 |
|
|
2,700 |
|
|
3,567 |
|
|
— |
|
|
24,116 |
|
|
Operating loss |
(10,669 |
) |
|
(1,668 |
) |
|
(3,521 |
) |
|
(4,804 |
) |
|
(5,824 |
) |
|
— |
|
|
(26,486 |
) |
|
Interest expense, net |
720 |
|
|
346 |
|
|
53 |
|
|
143 |
|
|
209 |
|
|
— |
|
|
1,471 |
|
|
Other (income) expense,
net |
(7,809 |
) |
|
(1,179 |
) |
|
(2 |
) |
|
(298 |
) |
|
18 |
|
|
— |
|
|
(9,270 |
) |
|
Loss before income taxes |
$ |
(3,580 |
) |
|
$ |
(835 |
) |
|
$ |
(3,572 |
) |
|
$ |
(4,649 |
) |
|
$ |
(6,051 |
) |
|
$ |
— |
|
|
$ |
(18,687 |
) |
|
Nine
months ended September 30, 2020 |
Infrastructure |
Pressure Pumping |
Sand |
Drilling |
All Other |
Eliminations |
Total |
Revenue from external customers |
$ |
100,294 |
|
|
$ |
74,549 |
|
|
$ |
22,421 |
|
|
$ |
7,166 |
|
|
$ |
23,596 |
|
|
$ |
— |
|
|
$ |
228,026 |
|
|
Intersegment revenues |
— |
|
|
1,435 |
|
|
95 |
|
|
107 |
|
|
2,026 |
|
|
(3,663 |
) |
|
— |
|
|
Total revenue |
100,294 |
|
|
75,984 |
|
|
22,516 |
|
|
7,273 |
|
|
25,622 |
|
|
(3,663 |
) |
|
228,026 |
|
|
Cost of revenue, exclusive of
depreciation, depletion, amortization and accretion |
81,389 |
|
|
41,833 |
|
|
20,465 |
|
|
9,627 |
|
|
23,274 |
|
|
— |
|
|
176,588 |
|
|
Intersegment cost of
revenues |
197 |
|
|
1,410 |
|
|
355 |
|
|
151 |
|
|
1,550 |
|
|
(3,663 |
) |
|
— |
|
|
Total cost of revenue |
81,586 |
|
|
43,243 |
|
|
20,820 |
|
|
9,778 |
|
|
24,824 |
|
|
(3,663 |
) |
|
176,588 |
|
|
Selling, general and
administrative |
19,711 |
|
|
5,443 |
|
|
3,641 |
|
|
2,777 |
|
|
5,105 |
|
|
— |
|
|
36,677 |
|
|
Depreciation, depletion,
amortization and accretion |
23,339 |
|
|
23,373 |
|
|
7,353 |
|
|
7,900 |
|
|
11,165 |
|
|
— |
|
|
73,130 |
|
|
Impairment of goodwill |
— |
|
|
53,406 |
|
|
— |
|
|
— |
|
|
1,567 |
|
|
— |
|
|
54,973 |
|
|
Impairment of other long-lived
assets |
— |
|
|
4,203 |
|
|
— |
|
|
326 |
|
|
8,368 |
|
|
— |
|
|
12,897 |
|
|
Operating loss |
(24,342 |
) |
|
(53,684 |
) |
|
(9,298 |
) |
|
(13,508 |
) |
|
(25,407 |
) |
|
— |
|
|
(126,239 |
) |
|
Interest expense, net |
2,105 |
|
|
907 |
|
|
167 |
|
|
473 |
|
|
555 |
|
|
— |
|
|
4,207 |
|
|
Other (income) expense,
net |
(24,289 |
) |
|
(2,444 |
) |
|
1,753 |
|
|
(251 |
) |
|
(490 |
) |
|
— |
|
|
(25,721 |
) |
|
Loss before income taxes |
$ |
(2,158 |
) |
|
$ |
(52,147 |
) |
|
$ |
(11,218 |
) |
|
$ |
(13,730 |
) |
|
$ |
(25,472 |
) |
|
$ |
— |
|
|
$ |
(104,725 |
) |
|
Nine
months ended September 30, 2019 |
Infrastructure |
Pressure Pumping |
Sand |
Drilling |
All Other |
Eliminations |
Total |
Revenue from external customers |
$ |
187,831 |
|
|
$ |
217,456 |
|
|
$ |
66,820 |
|
|
$ |
27,091 |
|
|
$ |
58,177 |
|
|
$ |
— |
|
|
$ |
557,375 |
|
|
Intersegment revenues |
— |
|
|
3,936 |
|
|
29,795 |
|
|
484 |
|
|
1,870 |
|
|
(36,085 |
) |
|
— |
|
|
Total revenue |
187,831 |
|
|
221,392 |
|
|
96,615 |
|
|
27,575 |
|
|
60,047 |
|
|
(36,085 |
) |
|
557,375 |
|
|
Cost of revenue, exclusive of
depreciation, depletion, amortization and accretion |
140,768 |
|
|
157,106 |
|
|
81,475 |
|
|
29,030 |
|
|
59,841 |
|
|
— |
|
|
468,220 |
|
|
Intersegment cost of
revenues |
1 |
|
|
31,388 |
|
|
2,513 |
|
|
686 |
|
|
1,557 |
|
|
(36,145 |
) |
|
— |
|
|
Total cost of revenue |
140,769 |
|
|
188,494 |
|
|
83,988 |
|
|
29,716 |
|
|
61,398 |
|
|
(36,145 |
) |
|
468,220 |
|
|
Selling, general and
administrative |
19,874 |
|
|
9,544 |
|
|
4,214 |
|
|
3,117 |
|
|
4,464 |
|
|
— |
|
|
41,213 |
|
|
Depreciation, depletion,
amortization and accretion |
23,490 |
|
|
30,244 |
|
|
11,423 |
|
|
9,866 |
|
|
13,489 |
|
|
— |
|
|
88,512 |
|
|
Impairment of goodwill |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3,194 |
|
|
— |
|
|
3,194 |
|
|
Impairment of other long-lived
assets |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3,348 |
|
|
— |
|
|
3,348 |
|
|
Operating income (loss) |
3,698 |
|
|
(6,890 |
) |
|
(3,010 |
) |
|
(15,124 |
) |
|
(25,846 |
) |
|
60 |
|
|
(47,112 |
) |
|
Interest expense, net |
1,024 |
|
|
965 |
|
|
145 |
|
|
679 |
|
|
659 |
|
|
— |
|
|
3,472 |
|
|
Other (income) expense,
net |
(35,108 |
) |
|
5 |
|
|
67 |
|
|
(122 |
) |
|
214 |
|
|
— |
|
|
(34,944 |
) |
|
Income (loss) before income
taxes |
$ |
37,782 |
|
|
$ |
(7,860 |
) |
|
$ |
(3,222 |
) |
|
$ |
(15,681 |
) |
|
$ |
(26,719 |
) |
|
$ |
60 |
|
|
$ |
(15,640 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
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 interest on trade accounts receivable) 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. 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): |
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
Net income (loss) |
$ |
3,430 |
|
|
|
$ |
(35,709 |
) |
|
|
$ |
(15,205 |
) |
|
|
$ |
(95,746 |
) |
|
|
$ |
(18,265 |
) |
|
Depreciation, depletion,
amortization and accretion expense |
23,132 |
|
|
|
29,791 |
|
|
|
24,116 |
|
|
|
73,130 |
|
|
|
88,512 |
|
|
Impairment of goodwill |
— |
|
|
|
3,194 |
|
|
|
— |
|
|
|
54,973 |
|
|
|
3,194 |
|
|
Impairment of other long-lived
assets |
— |
|
|
|
3,348 |
|
|
|
— |
|
|
|
12,897 |
|
|
|
3,348 |
|
|
Inventory obsolescence
charges |
— |
|
|
|
1,349 |
|
|
|
— |
|
|
|
— |
|
|
|
1,349 |
|
|
Acquisition related costs |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
45 |
|
|
Stock based compensation |
353 |
|
|
|
1,134 |
|
|
|
196 |
|
|
|
1,598 |
|
|
|
3,367 |
|
|
Interest expense, net |
1,098 |
|
|
|
1,398 |
|
|
|
1,471 |
|
|
|
4,207 |
|
|
|
3,472 |
|
|
Other income, net |
(9,042 |
) |
|
|
(6,368 |
) |
|
|
(9,270 |
) |
|
|
(25,721 |
) |
|
|
(34,944 |
) |
|
(Benefit) provision for income
taxes |
(6,193 |
) |
|
|
(7,794 |
) |
|
|
(3,482 |
) |
|
|
(8,979 |
) |
|
|
2,625 |
|
|
Interest on trade accounts
receivable |
9,285 |
|
|
|
5,896 |
|
|
|
9,071 |
|
|
|
26,052 |
|
|
|
34,865 |
|
|
Adjusted EBITDA |
$ |
22,063 |
|
|
|
$ |
(3,761 |
) |
|
|
$ |
6,897 |
|
|
|
$ |
42,411 |
|
|
|
$ |
87,568 |
|
|
Infrastructure Services
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
June 30, |
|
September 30, |
Reconciliation of
Adjusted EBITDA to net income (loss): |
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
Net income (loss) |
$ |
6,738 |
|
|
|
$ |
(10,763 |
) |
|
|
$ |
(4,529 |
) |
|
|
$ |
(7,242 |
) |
|
|
$ |
31,113 |
|
|
Depreciation and amortization
expense |
7,589 |
|
|
|
7,953 |
|
|
|
7,816 |
|
|
|
23,339 |
|
|
|
23,490 |
|
|
Acquisition related costs |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12 |
|
|
Stock based compensation |
141 |
|
|
|
217 |
|
|
|
45 |
|
|
|
437 |
|
|
|
688 |
|
|
Interest expense |
628 |
|
|
|
599 |
|
|
|
720 |
|
|
|
2,105 |
|
|
|
1,024 |
|
|
Other income, net |
(9,204 |
) |
|
|
(6,239 |
) |
|
|
(7,809 |
) |
|
|
(24,289 |
) |
|
|
(35,108 |
) |
|
Provision for income
taxes |
1,645 |
|
|
|
1,477 |
|
|
|
949 |
|
|
|
5,085 |
|
|
|
6,670 |
|
|
Interest on trade accounts
receivable |
8,170 |
|
|
|
5,896 |
|
|
|
7,929 |
|
|
|
23,796 |
|
|
|
34,865 |
|
|
Adjusted EBITDA |
$ |
15,707 |
|
|
|
$ |
(860 |
) |
|
|
$ |
5,121 |
|
|
|
$ |
23,231 |
|
|
|
$ |
62,754 |
|
|
Pressure Pumping Services
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
June 30, |
|
September 30, |
Reconciliation of
Adjusted EBITDA to net income (loss): |
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
Net income (loss) |
$ |
408 |
|
|
|
$ |
(8,659 |
) |
|
|
$ |
(835 |
) |
|
|
$ |
(52,149 |
) |
|
|
$ |
(7,860 |
) |
|
Depreciation and amortization
expense |
7,196 |
|
|
|
10,176 |
|
|
|
7,685 |
|
|
|
23,373 |
|
|
|
30,244 |
|
|
Impairment of goodwill |
— |
|
|
|
— |
|
|
|
— |
|
|
|
53,406 |
|
|
|
— |
|
|
Impairment of other long-lived
assets |
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,203 |
|
|
|
— |
|
|
Acquisition related costs |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18 |
|
|
Stock based compensation |
77 |
|
|
|
503 |
|
|
|
53 |
|
|
|
465 |
|
|
|
1,402 |
|
|
Interest expense |
269 |
|
|
|
316 |
|
|
|
346 |
|
|
|
907 |
|
|
|
965 |
|
|
Other (income) expense,
net |
(1,156 |
) |
|
|
(3 |
) |
|
|
(1,179 |
) |
|
|
(2,444 |
) |
|
|
5 |
|
|
Interest on trade accounts
receivable |
1,073 |
|
|
|
— |
|
|
|
1,133 |
|
|
|
2,205 |
|
|
|
— |
|
|
Adjusted EBITDA |
$ |
7,867 |
|
|
|
$ |
2,333 |
|
|
|
$ |
7,203 |
|
|
|
$ |
29,966 |
|
|
|
$ |
24,774 |
|
|
Natural Sand Proppant Services
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
June 30, |
|
September 30, |
Reconciliation of
Adjusted EBITDA to net loss: |
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
Net loss |
$ |
(3,351 |
) |
|
|
$ |
(5,990 |
) |
|
|
$ |
(3,572 |
) |
|
|
$ |
(11,218 |
) |
|
|
$ |
(3,222 |
) |
|
Depreciation, depletion,
amortization and accretion expense |
2,693 |
|
|
|
4,022 |
|
|
|
2,348 |
|
|
|
7,353 |
|
|
|
11,423 |
|
|
Acquisition related costs |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8 |
|
|
Stock based compensation |
76 |
|
|
|
216 |
|
|
|
45 |
|
|
|
347 |
|
|
|
656 |
|
|
Interest expense |
54 |
|
|
|
43 |
|
|
|
53 |
|
|
|
167 |
|
|
|
145 |
|
|
Other expense (income),
net |
1,792 |
|
|
|
99 |
|
|
|
(2 |
) |
|
|
1,753 |
|
|
|
67 |
|
|
Interest on trade accounts
receivable |
26 |
|
|
|
— |
|
|
|
— |
|
|
|
26 |
|
|
|
— |
|
|
Adjusted EBITDA |
$ |
1,290 |
|
|
|
$ |
(1,610 |
) |
|
|
$ |
(1,128 |
) |
|
|
$ |
(1,572 |
) |
|
|
$ |
9,077 |
|
|
Drilling Services
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
June 30, |
|
September 30, |
Reconciliation of
Adjusted EBITDA to net loss: |
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
Net loss |
$ |
(3,530 |
) |
|
|
$ |
(5,391 |
) |
|
|
$ |
(4,649 |
) |
|
|
$ |
(13,730 |
) |
|
|
$ |
(15,681 |
) |
|
Depreciation expense |
2,323 |
|
|
|
3,096 |
|
|
|
2,700 |
|
|
|
7,900 |
|
|
|
9,866 |
|
|
Impairment of other long-lived
assets |
— |
|
|
|
— |
|
|
|
— |
|
|
|
326 |
|
|
|
— |
|
|
Acquisition related costs |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
Stock based compensation |
38 |
|
|
|
90 |
|
|
|
34 |
|
|
|
166 |
|
|
|
279 |
|
|
Interest expense |
60 |
|
|
|
220 |
|
|
|
143 |
|
|
|
473 |
|
|
|
679 |
|
|
Other expense (income),
net |
20 |
|
|
|
(100 |
) |
|
|
(298 |
) |
|
|
(251 |
) |
|
|
(122 |
) |
|
Adjusted EBITDA |
$ |
(1,089 |
) |
|
|
$ |
(2,085 |
) |
|
|
$ |
(2,070 |
) |
|
|
$ |
(5,116 |
) |
|
|
$ |
(4,977 |
) |
|
Other Services(a)
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
June 30, |
|
September 30, |
Reconciliation of
Adjusted EBITDA to net income (loss): |
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
Net income (loss) |
$ |
3,165 |
|
|
|
$ |
(4,905 |
) |
|
|
$ |
(1,620 |
) |
|
|
$ |
(11,407 |
) |
|
|
$ |
(22,674 |
) |
|
Depreciation, amortization and
accretion expense |
3,331 |
|
|
|
4,544 |
|
|
|
3,567 |
|
|
|
11,165 |
|
|
|
13,489 |
|
|
Impairment of goodwill |
— |
|
|
|
3,194 |
|
|
|
— |
|
|
|
1,567 |
|
|
|
3,194 |
|
|
Impairment of other long-lived
assets |
— |
|
|
|
3,348 |
|
|
|
— |
|
|
|
8,368 |
|
|
|
3,348 |
|
|
Inventory obsolescence
charges |
— |
|
|
|
1,349 |
|
|
|
— |
|
|
|
— |
|
|
|
1,349 |
|
|
Acquisition related costs |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5 |
|
|
Stock based compensation |
21 |
|
|
|
107 |
|
|
|
19 |
|
|
|
183 |
|
|
|
341 |
|
|
Interest expense, net |
87 |
|
|
|
220 |
|
|
|
209 |
|
|
|
555 |
|
|
|
659 |
|
|
Other (income) expense,
net |
(494 |
) |
|
|
(125 |
) |
|
|
18 |
|
|
|
(490 |
) |
|
|
214 |
|
|
Benefit for income taxes |
(7,838 |
) |
|
|
(9,272 |
) |
|
|
(4,431 |
) |
|
|
(14,064 |
) |
|
|
(4,045 |
) |
|
Interest on trade accounts
receivable |
16 |
|
|
|
— |
|
|
|
9 |
|
|
|
25 |
|
|
|
— |
|
|
Adjusted EBITDA |
$ |
(1,712 |
) |
|
|
$ |
(1,540 |
) |
|
|
$ |
(2,229 |
) |
|
|
$ |
(4,098 |
) |
|
|
$ |
(4,120 |
) |
|
- Includes results for Mammoth's coil tubing, pressure control,
flowback, cementing, acidizing, equipment rentals, crude oil
hauling, full service transportation and remote accommodations,
oilfield equipment manufacturing and infrastructure engineering and
design services and corporate related activities. The Company's
corporate related activities do not generate revenue.
Adjusted Net Income (Loss) and Adjusted Earnings (Loss)
per Share
Adjusted net income (loss) and adjusted basic and diluted
earnings (loss) 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 of goodwill and impairment of other long-lived assets,
that may not be indicative of the Company's ongoing operating
results. Adjusted net income (loss) and adjusted earnings (loss)
per share should not be considered in isolation or as a substitute
for net income (loss) and earnings (loss) 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 (loss) and adjusted earnings
(loss) per share to the GAAP financial measures of net income
(loss) and earnings (loss) per share for the periods specified.
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
June 30, |
|
September 30, |
|
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
|
|
|
(in thousands, except per share amounts) |
Net income (loss), as reported |
$ |
3,430 |
|
|
|
$ |
(35,709 |
) |
|
|
$ |
(15,205 |
) |
|
|
$ |
(95,746 |
) |
|
|
$ |
(18,265 |
) |
|
Impairment of goodwill |
— |
|
|
|
3,194 |
|
|
|
— |
|
|
|
54,973 |
|
|
|
3,194 |
|
|
Impairment of other long-lived assets |
— |
|
|
|
3,348 |
|
|
|
— |
|
|
|
12,897 |
|
|
|
3,348 |
|
|
Adjusted net income
(loss) |
$ |
3,430 |
|
|
|
$ |
(29,167 |
) |
|
|
$ |
(15,205 |
) |
|
|
$ |
(27,876 |
) |
|
|
$ |
(11,723 |
) |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per
share, as reported |
$ |
0.07 |
|
|
|
$ |
(0.79 |
) |
|
|
$ |
(0.33 |
) |
|
|
$ |
(2.10 |
) |
|
|
$ |
(0.41 |
) |
|
Impairment of goodwill |
— |
|
|
|
0.07 |
|
|
|
— |
|
|
|
1.21 |
|
|
|
0.07 |
|
|
Impairment of other long-lived assets |
— |
|
|
|
0.07 |
|
|
|
— |
|
|
|
0.28 |
|
|
|
0.07 |
|
|
Adjusted basic earnings (loss)
per share |
$ |
0.07 |
|
|
|
$ |
(0.65 |
) |
|
|
$ |
(0.33 |
) |
|
|
$ |
(0.61 |
) |
|
|
$ |
(0.27 |
) |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per
share, as reported |
$ |
0.07 |
|
|
|
$ |
(0.79 |
) |
|
|
$ |
(0.33 |
) |
|
|
$ |
(2.10 |
) |
|
|
$ |
(0.41 |
) |
|
Impairment of goodwill |
— |
|
|
|
0.07 |
|
|
|
— |
|
|
|
1.21 |
|
|
|
0.07 |
|
|
Impairment of other long-lived assets |
— |
|
|
|
0.07 |
|
|
|
— |
|
|
|
0.28 |
|
|
|
0.07 |
|
|
Adjusted diluted earnings
(loss) per share |
$ |
0.07 |
|
|
|
$ |
(0.65 |
) |
|
|
$ |
(0.33 |
) |
|
|
$ |
(0.61 |
) |
|
|
$ |
(0.27 |
) |
|
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