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, 2020.
Financial Highlights for the Fourth Quarter and Full
Year 2020:
Total revenue was $85.1 million for the three months ended
December 31, 2020, up 21% from $70.5 million for the three
months ended September 30, 2020 and up 26% from $67.6 million
for the three months ended December 31, 2019. Total revenue
was $313.1 million for the year ended December 31, 2020, down 50%
from $625.0 million for the year ended December 31, 2019.
Net loss for the three months ended December 31, 2020 was
$11.9 million, or $0.26 per fully diluted share, as compared to net
income of $3.4 million, or $0.07 per fully diluted share, for the
three months ended September 30, 2020 and a net loss of $60.8
million, or $1.35 per fully diluted share, for the three months
ended December 31, 2019. Net loss for the year ended December
31, 2020 was $107.6 million, or $2.36 per fully diluted share, as
compared to net loss of $79.0 million, or $1.76 per fully diluted
share for the year ended December 31, 2019.
Adjusted EBITDA (as defined and reconciled below) was $7.5
million for the three months ended December 31, 2020, as
compared to $22.1 million for the three months ended
September 30, 2020 and ($10.3) million for the three months
ended December 31, 2019. Adjusted EBITDA was $50.0 million for
the year ended December 31, 2020, as compared to $77.3 million for
the year ended December 31, 2019.
“The fourth quarter of 2020 clearly shows that Mammoth continues
to execute on its transition to an industrial focused company, with
approximately 66% of our revenues derived from the industrial
sector during the quarter. Given the anticipated demand in the
industrial sector, we are well positioned to continue to grow our
industrial business rapidly over the coming years. We expect to be
ready to ramp up our oilfield service offerings when oilfield
demand, pricing and margins strengthen. The recent signing of an
agreement by our engineering group allows for significant expansion
and brings us one step closer to being a fully integrated
Engineering, Procurement and Construction “EPC” company,” commented
Arty Straehla, Chief Executive Officer of Mammoth.
Infrastructure Services
Mammoth's infrastructure services division contributed revenue
of $55.9 million, or approximately 66% of Mammoth's total revenue,
for the three months ended December 31, 2020, an increase of
28% from $43.6 million for the three months ended
September 30, 2020 and an increase of 118% from $25.6 million
for the three months ended December 31, 2019 reflecting a
strong demand for our services.
The infrastructure segment contributed revenues of $155.2
million for the year ended December 31, 2020, down from $213.3
million for the year ended December 31, 2019.
Mammoth had approximately 115 crews operating in the continental
United States throughout 2020.
Well Completion Services
Mammoth's well completion services division contributed revenue
(inclusive of inter-segment revenue) of $12.7 million on 291 stages
for the three months ended December 31, 2020, a decrease of
20% from $15.8 million on 449 stages for the three months ended
September 30, 2020 and a decrease of 49% from $24.9 million on
989 stages for the three months ended December 31, 2019. On
average, 0.6 of the Company's fleets were active for the three
months ended December 31, 2020, compared to average
utilization of 0.9 fleets during the three months ended
September 30, 2020 and an average utilization of 1.7 fleets
during the three months ended December 31, 2019.
The well completion division contributed revenues (inclusive of
inter-segment revenues) of $88.3 million on 2,880 stages for the
year ended December 31, 2020, down from $243.8 million on 5,378
stages for the year ended December 31, 2019. On average, 1.5 of the
Company's fleets were active for the year ended December 31, 2020
compared to 2.4 fleets for the year ended December 31,
2019. Natural Sand Proppant
Services
Mammoth's natural sand proppant services division contributed
revenue (inclusive of inter-segment revenue) of $11.8 million for
the three months ended December 31, 2020, an increase of 97%
from $6.0 million for the three months ended September 30,
2020 and an increase of 307% from $2.9 million for the three months
ended December 31, 2019. The Company sold approximately
100,000 tons of sand during the three months ended
December 31, 2020, an increase of 47% from approximately
68,000 tons sold during the three months ended September 30,
2020 and an increase of 32% from approximately 76,000 tons sold
during the three months ended December 31, 2019. The Company's
average sales price for the sand sold during the three months ended
December 31, 2020 remained flat at $15.59 per ton, compared to
the three months ended September 30, 2020 and decreased from
the $19.95 per ton average sales price during the three months
ended December 31, 2019.
The natural sand proppant division contributed revenues
(inclusive of inter-segment revenues) of $34.4 million for the year
ended December 31, 2020, as compared to $97.1 million for the year
ended December 31, 2019. The Company sold 0.5 million tons of sand
during the year ended December 31, 2020, a decline from 2.0 million
tons of sand during the year ended December 31, 2019. The Company's
average sales price for the sand sold during the year ended
December 31, 2020 was $14.58 per ton, a decline from $29.70 per ton
average sales price during the year ended December 31, 2019.
Drilling Services
Mammoth's drilling services division contributed revenue
(inclusive of inter-segment revenue) of $0.6 million for the three
months ended December 31, 2020, a decrease of 50% from $1.2
million for the three months ended September 30, 2020 and a
decrease of 87% from $4.7 million for the three months ended
December 31, 2019. The drilling services division contributed
revenues of $7.8 million for the year ended December 31, 2020, as
compared to $32.0 million for the year ended December 31, 2019.
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 aviation, coil tubing,
pressure control, flowback, cementing, acidizing, equipment
rentals, crude oil hauling, full service transportation, remote
accommodations, equipment manufacturing and infrastructure
engineering and design services, contributed revenue (inclusive of
inter-segment revenue) of $4.7 million for the three months ended
December 31, 2020, unchanged from the $4.7 million for the
three months ended September 30, 2020 and a decrease of 54%
from $10.3 million for the three months ended December 31,
2019.
The Company's other services contributed revenues of $31.3
million for the year ended December 31, 2020, as compared to $88.6
million for the year ended December 31, 2019.
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 July 2019 and its coil tubing and
full service transportation operations beginning in July 2020.
Selling, General and Administrative
Expenses
Selling, general and administrative (“SG&A”) expenses were
$30.5 million for the three months ended December 31, 2020, as
compared to $12.2 million for the three months ended
September 30, 2020 and $10.3 million for the three months
ended December 31, 2019.
Following is a breakout of SG&A expense (in thousands):
|
Three Months Ended |
|
Years Ended December 31, |
|
December 31, |
|
September 30, |
|
December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
Cash expenses: |
|
|
|
|
|
|
|
|
|
Compensation and benefits |
$ |
3,738 |
|
|
$ |
3,203 |
|
|
$ |
3,449 |
|
|
$ |
14,876 |
|
|
$ |
19,364 |
|
Professional services |
4,570 |
|
|
4,301 |
|
|
5,651 |
|
|
19,905 |
|
|
17,128 |
|
Other(a) |
2,256 |
|
|
2,010 |
|
|
2,163 |
|
|
8,828 |
|
|
10,300 |
|
Total cash SG&A expense |
10,564 |
|
|
9,514 |
|
|
11,263 |
|
|
43,609 |
|
|
46,792 |
|
Non-cash expenses: |
|
|
|
|
|
|
|
|
|
Bad debt provision |
19,652 |
|
|
204 |
|
|
626 |
|
|
21,958 |
|
|
1,434 |
|
Stock based compensation |
292 |
|
|
620 |
|
|
291 |
|
|
1,618 |
|
|
3,326 |
|
Total non-cash SG&A expense |
19,944 |
|
|
824 |
|
|
917 |
|
|
23,576 |
|
|
4,760 |
|
Total SG&A expense |
$ |
30,508 |
|
|
$ |
10,338 |
|
|
$ |
12,180 |
|
|
$ |
67,185 |
|
|
$ |
51,552 |
|
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 36%
for the three months ended December 31, 2020, as compared to
17% for the three months ended September 30, 2020 and 15% for
the three months ended December 31, 2019. SG&A expenses,
as a percentage of total revenue, were 21% for the year ended
December 31, 2020, as compared to 8% for the year ended December
31, 2019. The bad debt provision for the three months ended
December 31, 2020, includes $19.4 million related to the voluntary
petitions for relief filed on November 13, 2020, by Gulfport Energy
Corporation and certain of its subsidiaries.
Liquidity
As of December 31, 2020, Mammoth had cash on hand of $14.8
million and outstanding borrowings under its revolving credit
facility of $78.0 million. As of December 31, 2020, the
Company had $38.7 million of available borrowing capacity under its
revolving credit facility, after giving effect to $13.0 million of
outstanding letters of credit. As of December 31, 2020,
Mammoth had total liquidity of $53.5 million.
As of February 24, 2021, Mammoth had cash on hand of $21.4
million and outstanding borrowings under its revolving credit
facility of $75.0 million. As of February 24, 2021, the
Company had $41.7 million of available borrowing capacity under its
revolving credit facility, after giving effect to $13.0 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 |
|
Years Ended December 31, |
|
December 31, |
|
September 30, |
|
December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
Infrastructure services(a) |
$ |
37 |
|
|
$ |
— |
|
|
$ |
178 |
|
|
$ |
258 |
|
|
$ |
3,456 |
|
Well completion
services(b) |
606 |
|
|
398 |
|
|
698 |
|
|
4,358 |
|
|
14,703 |
|
Natural sand proppant
services(c) |
4 |
|
|
174 |
|
|
194 |
|
|
1,073 |
|
|
2,877 |
|
Drilling services(d) |
234 |
|
|
84 |
|
|
131 |
|
|
432 |
|
|
3,156 |
|
Other(e) |
7 |
|
|
215 |
|
|
324 |
|
|
716 |
|
|
11,569 |
|
Total capital
expenditures |
$ |
888 |
|
|
$ |
871 |
|
|
$ |
1,525 |
|
|
$ |
6,837 |
|
|
$ |
35,761 |
|
a. Capital expenditures primarily for truck, tooling
and other equipment for the periods presented.b.
Capital expenditures primarily for well completion 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 with the SEC.
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.
As of December 31, 2020, the Company’s four reportable
segments include infrastructure services (“Infrastructure”), well
completion services (“Well Completion”), natural sand proppant
services (“Sand”) and drilling services (“Drilling”). In 2019, the
Company included Barracuda Logistics LLC, or Barracuda, in its Well
Completion segment, Cobra Aviation Services LLC, or Cobra Aviation,
Air Rescue Systems Corporation, or ARS, and Leopard Aviation LLC,
or Leopard, in its Infrastructure segment and Mako Acquisitions
LLC, or Mako, in its Drilling segment. Based on its assessment of
FASB ASC 280, Segment Reporting, guidance at December 31,
2020, the Company changed its presentation in 2020 to move
Barracuda to the Sand segment and Cobra Aviation, ARS, Leopard and
Mako to the reconciling column titled “All Other”. Additionally,
Mammoth changed the name of its pressure pumping segment to the
well completion segment in 2020. The results for the year ended
December 31, 2019 have been retroactively adjusted to reflect
these changes.
Conference Call Information
Mammoth will host a conference call on Thursday, February 25,
2021 at 4:00 p.m. CDT (5:00 p.m. EDT) to discuss its fourth quarter
and full year 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 7435949. 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 construction and repair of the
electric grid for private utilities, public investor-owned
utilities and co-operative utilities through its energy
infrastructure services and the exploration and development of
North American onshore unconventional oil and natural gas reserves.
Mammoth’s suite of services and products include: infrastructure
services, well completion 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 well completion services
segments; risks relating to economic conditions; the loss of or
interruption in operations of one or more of Mammoth's significant
suppliers or customers; the outcome of Gulfport Energy
Corporation's chapter 11 bankruptcy filing and the treatment of
Mammoth's contracts and claims in such proceeding; the effects of
government regulation, permitting and other legal requirements;
operating risks; the adequacy of capital resources and liquidity;
weather; natural disasters; litigation; volatility in commodity
markets; 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, |
|
|
2020 |
|
2019 |
CURRENT ASSETS |
|
(in thousands) |
Cash and cash equivalents |
|
$ |
14,822 |
|
|
|
$ |
5,872 |
|
|
Short-term investment |
|
1,750 |
|
|
|
— |
|
|
Accounts receivable, net |
|
393,112 |
|
|
|
363,053 |
|
|
Receivables from related parties |
|
28,461 |
|
|
|
7,523 |
|
|
Inventories |
|
12,020 |
|
|
|
17,483 |
|
|
Prepaid expenses |
|
13,825 |
|
|
|
12,354 |
|
|
Other current assets |
|
758 |
|
|
|
695 |
|
|
Total current assets |
|
464,748 |
|
|
|
406,980 |
|
|
|
|
|
|
|
Property, plant and equipment,
net |
|
251,262 |
|
|
|
352,772 |
|
|
Sand reserves |
|
65,876 |
|
|
|
68,351 |
|
|
Operating lease right-of-use
assets |
|
20,179 |
|
|
|
43,446 |
|
|
Intangible assets, net -
customer relationships |
|
408 |
|
|
|
583 |
|
|
Intangible assets, net - trade
names |
|
4,366 |
|
|
|
5,205 |
|
|
Goodwill |
|
12,608 |
|
|
|
67,581 |
|
|
Other non-current assets |
|
5,115 |
|
|
|
7,467 |
|
|
Total assets |
|
$ |
824,562 |
|
|
|
$ |
952,385 |
|
|
LIABILITIES AND EQUITY |
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
Accounts payable |
|
$ |
40,316 |
|
|
|
$ |
39,220 |
|
|
Payables to related parties |
|
3 |
|
|
|
526 |
|
|
Accrued expenses and other current liabilities |
|
44,408 |
|
|
|
40,754 |
|
|
Current operating lease liability |
|
8,618 |
|
|
|
16,432 |
|
|
Current portion of long-term debt |
|
1,165 |
|
|
|
— |
|
|
Income taxes payable |
|
34,088 |
|
|
|
33,465 |
|
|
Total current liabilities |
|
128,598 |
|
|
|
130,397 |
|
|
|
|
|
|
|
Long-term debt |
|
81,338 |
|
|
|
80,000 |
|
|
Deferred income tax
liabilities |
|
24,741 |
|
|
|
36,873 |
|
|
Long-term operating lease
liability |
|
11,377 |
|
|
|
27,102 |
|
|
Asset retirement
obligation |
|
4,746 |
|
|
|
4,241 |
|
|
Other liabilities |
|
10,435 |
|
|
|
5,031 |
|
|
Total liabilities |
|
261,235 |
|
|
|
283,644 |
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
Equity: |
|
|
|
|
Common stock, $0.01 par value, 200,000,000 shares authorized,
45,769,283 and 45,108,545 issued and outstanding at December 31,
2020 and 2019 |
|
458 |
|
|
|
451 |
|
|
Additional paid in capital |
|
537,039 |
|
|
|
535,094 |
|
|
Retained earnings |
|
28,895 |
|
|
|
136,502 |
|
|
Accumulated other comprehensive loss |
|
(3,065 |
) |
|
|
(3,306 |
) |
|
Total equity |
|
563,327 |
|
|
|
668,741 |
|
|
Total liabilities and equity |
|
$ |
824,562 |
|
|
|
$ |
952,385 |
|
|
|
MAMMOTH
ENERGY SERVICES, INC.CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
|
Three Months Ended |
|
Years Ended December 31, |
|
December 31, |
|
September 30, |
|
December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except per share amounts) |
REVENUE |
|
Services revenue |
$ |
65,079 |
|
|
|
$ |
57,950 |
|
|
|
$ |
55,279 |
|
|
|
$ |
234,081 |
|
|
|
$ |
452,594 |
|
|
Services revenue - related parties |
7,862 |
|
|
|
6,714 |
|
|
|
8,565 |
|
|
|
43,091 |
|
|
|
102,624 |
|
|
Product revenue |
10,234 |
|
|
|
1,724 |
|
|
|
4,815 |
|
|
|
28,404 |
|
|
|
42,105 |
|
|
Product revenue - related parties |
1,875 |
|
|
|
1,249 |
|
|
|
1,875 |
|
|
|
7,500 |
|
|
|
27,689 |
|
|
Total revenue |
85,050 |
|
|
|
67,637 |
|
|
|
70,534 |
|
|
|
313,076 |
|
|
|
625,012 |
|
|
|
|
|
|
|
|
|
|
|
|
COST AND EXPENSES |
|
|
|
|
|
|
|
|
|
Services cost of revenue (exclusive of depreciation, depletion,
amortization and accretion of $19,780, $25,872, $26,416, $85,481
and $102,901, respectively, for the three months ended December 31,
2020, December 31, 2019 and September 30, 2020 and years ended
December 31, 2020 and 2019) |
51,260 |
|
|
|
68,599 |
|
|
|
41,445 |
|
|
|
205,657 |
|
|
|
451,206 |
|
|
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,
2020, December 31, 2019 and September 30, 2020 and years ended
December 31, 2020 and 2019) |
90 |
|
|
|
633 |
|
|
|
131 |
|
|
|
418 |
|
|
|
4,770 |
|
|
Product cost of revenue (exclusive of depreciation, depletion,
amortization and accretion of $2,387, $2,625, $2,697, $9,758 and
$14,039, respectively, for the three months ended December 31,
2020, December 31, 2019 and September 30, 2020 and years ended
December 31, 2020 and 2019) |
4,083 |
|
|
|
6,337 |
|
|
|
4,353 |
|
|
|
25,946 |
|
|
|
87,812 |
|
|
Selling, general and administrative |
30,364 |
|
|
|
9,978 |
|
|
|
11,979 |
|
|
|
66,427 |
|
|
|
49,705 |
|
|
Selling, general and administrative - related parties |
144 |
|
|
|
360 |
|
|
|
201 |
|
|
|
758 |
|
|
|
1,847 |
|
|
Depreciation, depletion, amortization and accretion |
22,187 |
|
|
|
28,521 |
|
|
|
23,132 |
|
|
|
95,317 |
|
|
|
117,033 |
|
|
Impairment of goodwill |
— |
|
|
|
30,470 |
|
|
|
— |
|
|
|
54,973 |
|
|
|
33,664 |
|
|
Impairment of other long-lived assets |
— |
|
|
|
4,010 |
|
|
|
— |
|
|
|
12,897 |
|
|
|
7,358 |
|
|
Total cost and expenses |
108,128 |
|
|
|
148,908 |
|
|
|
81,241 |
|
|
|
462,393 |
|
|
|
753,395 |
|
|
Operating loss |
(23,078 |
) |
|
|
(81,271 |
) |
|
|
(10,707 |
) |
|
|
(149,317 |
) |
|
|
(128,383 |
) |
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE) |
|
|
|
|
|
|
|
|
|
Interest expense, net |
(1,191 |
) |
|
|
(1,486 |
) |
|
|
(1,098 |
) |
|
|
(5,397 |
) |
|
|
(4,958 |
) |
|
Other, net |
9,559 |
|
|
|
7,272 |
|
|
|
7,943 |
|
|
|
33,048 |
|
|
|
42,216 |
|
|
Other, net - related parties |
(341 |
) |
|
|
— |
|
|
|
1,099 |
|
|
|
1,890 |
|
|
|
— |
|
|
Total other income |
8,027 |
|
|
|
5,786 |
|
|
|
7,944 |
|
|
|
29,541 |
|
|
|
37,258 |
|
|
Loss before income taxes |
(15,051 |
) |
|
|
(75,485 |
) |
|
|
(2,763 |
) |
|
|
(119,776 |
) |
|
|
(91,125 |
) |
|
Benefit for income taxes |
(3,190 |
) |
|
|
(14,706 |
) |
|
|
(6,193 |
) |
|
|
(12,169 |
) |
|
|
(12,081 |
) |
|
Net (loss) income |
$ |
(11,861 |
) |
|
|
$ |
(60,779 |
) |
|
|
$ |
3,430 |
|
|
|
$ |
(107,607 |
) |
|
|
$ |
(79,044 |
) |
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE INCOME
(LOSS) |
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment, net of tax of ($170), $69,
($95), ($54) and ($203), respectively, for the three months ended
December 31, 2020, December 31, 2019 and September 30, 2020 and
years ended December 31, 2020 and 2019 |
663 |
|
|
|
(213 |
) |
|
|
324 |
|
|
|
241 |
|
|
|
775 |
|
|
Comprehensive (loss)
income |
$ |
(11,198 |
) |
|
|
$ |
(60,992 |
) |
|
|
$ |
3,754 |
|
|
|
$ |
(107,366 |
) |
|
|
$ |
(78,269 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per share
(basic) |
$ |
(0.26 |
) |
|
|
$ |
(1.35 |
) |
|
|
$ |
0.07 |
|
|
|
$ |
(2.36 |
) |
|
|
$ |
(1.76 |
) |
|
Net (loss) income per share
(diluted) |
$ |
(0.26 |
) |
|
|
$ |
(1.35 |
) |
|
|
$ |
0.07 |
|
|
|
$ |
(2.36 |
) |
|
|
$ |
(1.76 |
) |
|
Weighted average number of
shares outstanding (basic) |
45,769 |
|
|
|
45,092 |
|
|
|
45,764 |
|
|
|
45,644 |
|
|
|
45,011 |
|
|
Weighted average number of
shares outstanding (diluted) |
45,769 |
|
|
|
45,092 |
|
|
|
46,571 |
|
|
|
45,644 |
|
|
|
45,011 |
|
|
Dividends declared per
share |
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
0.25 |
|
|
|
MAMMOTH
ENERGY SERVICES, INC.CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
|
|
Years Ended December 31, |
|
December 31, |
|
2020 |
|
2019 |
|
(in thousands) |
Cash flows from operating
activities: |
|
|
|
Net loss |
$ |
(107,607 |
) |
|
|
$ |
(79,044 |
) |
|
Adjustments to reconcile net loss to cash provided by (used in)
operating activities: |
|
|
|
Stock based compensation |
1,952 |
|
|
|
4,177 |
|
|
Depreciation, depletion, accretion and amortization |
95,317 |
|
|
|
117,033 |
|
|
Amortization of coil tubing strings |
359 |
|
|
|
1,641 |
|
|
Amortization of debt origination costs |
831 |
|
|
|
326 |
|
|
Bad debt expense |
21,958 |
|
|
|
1,434 |
|
|
(Gain) loss on disposal of property and equipment |
(1,379 |
) |
|
|
55 |
|
|
Impairment of goodwill |
54,973 |
|
|
|
33,664 |
|
|
Impairment of other long-lived assets |
12,897 |
|
|
|
7,358 |
|
|
Inventory obsolescence |
— |
|
|
|
1,349 |
|
|
Deferred income taxes |
(12,186 |
) |
|
|
(42,639 |
) |
|
Other |
(143 |
) |
|
|
(986 |
) |
|
Changes in assets and liabilities: |
|
|
|
Accounts receivable, net |
(32,621 |
) |
|
|
(27,006 |
) |
|
Receivables from related parties |
(40,333 |
) |
|
|
3,641 |
|
|
Inventories |
5,103 |
|
|
|
830 |
|
|
Prepaid expenses and other assets |
1,996 |
|
|
|
(1,040 |
) |
|
Accounts payable |
2,526 |
|
|
|
(25,968 |
) |
|
Payables to related parties |
(522 |
) |
|
|
156 |
|
|
Accrued expenses and other liabilities |
3,198 |
|
|
|
(18,800 |
) |
|
Income taxes payable |
648 |
|
|
|
(71,499 |
) |
|
Net cash provided by (used in)
operating activities |
6,967 |
|
|
|
(95,318 |
) |
|
|
|
|
|
Cash flows from investing
activities: |
|
|
|
Purchases of property and equipment |
(6,761 |
) |
|
|
(35,417 |
) |
|
Purchases of property and equipment from related parties |
(76 |
) |
|
|
(344 |
) |
|
Contributions to equity investee |
(490 |
) |
|
|
(680 |
) |
|
Proceeds from disposal of property and equipment |
6,782 |
|
|
|
3,217 |
|
|
Purchase of short-term investment |
(1,750 |
) |
|
|
— |
|
|
Net cash used in investing
activities |
(2,295 |
) |
|
|
(33,224 |
) |
|
|
|
|
|
Cash flows from financing
activities: |
|
|
|
Borrowings from lines of credit |
35,351 |
|
|
|
156,000 |
|
|
Repayments of lines of credit |
(32,800 |
) |
|
|
(76,000 |
) |
|
Proceeds from sale leaseback transaction |
5,000 |
|
|
|
— |
|
|
Payments on sale leaseback transaction |
(268 |
) |
|
|
— |
|
|
Dividends paid |
— |
|
|
|
(11,219 |
) |
|
Principal payments on financing leases and equipment financing
notes |
(1,966 |
) |
|
|
(2,079 |
) |
|
Debt issuance costs |
(1,051 |
) |
|
|
— |
|
|
Net cash provided by financing
activities |
4,266 |
|
|
|
66,702 |
|
|
Effect of foreign exchange
rate on cash |
12 |
|
|
|
87 |
|
|
Net change in cash and cash
equivalents |
8,950 |
|
|
|
(61,753 |
) |
|
Cash and cash equivalents at
beginning of period |
5,872 |
|
|
|
67,625 |
|
|
Cash and cash equivalents at
end of period |
$ |
14,822 |
|
|
|
$ |
5,872 |
|
|
|
|
|
|
Supplemental disclosure of
cash flow information: |
|
|
|
Cash paid for interest |
$ |
4,729 |
|
|
|
$ |
4,741 |
|
|
Cash (recovered) paid for income taxes |
$ |
(617 |
) |
|
|
$ |
110,848 |
|
|
Supplemental disclosure of
non-cash transactions: |
|
|
|
Purchases of property and equipment included in accounts
payable |
$ |
1,312 |
|
|
|
$ |
2,303 |
|
|
Right-of-use assets obtained for financing lease liabilities |
$ |
2,431 |
|
|
|
$ |
3,721 |
|
|
|
MAMMOTH
ENERGY SERVICES, INC.SEGMENT INCOME STATEMENTS(in
thousands) |
|
Three
months ended December 31, 2020 |
Infrastructure |
Well Completion |
Sand |
Drilling |
All Other |
Eliminations |
Total |
Revenue from external customers |
$ |
55,934 |
|
|
$ |
12,653 |
|
|
$ |
11,843 |
|
|
$ |
580 |
|
|
$ |
4,040 |
|
|
$ |
— |
|
|
$ |
85,050 |
|
|
Intersegment revenues |
— |
|
|
44 |
|
|
— |
|
|
23 |
|
|
670 |
|
|
(737 |
) |
|
— |
|
|
Total revenue |
55,934 |
|
|
12,697 |
|
|
11,843 |
|
|
603 |
|
|
4,710 |
|
|
(737 |
) |
|
85,050 |
|
|
Cost of revenue, exclusive of
depreciation, depletion, amortization and accretion |
41,265 |
|
|
5,194 |
|
|
4,110 |
|
|
1,165 |
|
|
3,699 |
|
|
— |
|
|
55,433 |
|
|
Intersegment cost of
revenues |
127 |
|
|
426 |
|
|
— |
|
|
— |
|
|
184 |
|
|
(737 |
) |
|
— |
|
|
Total cost of revenue |
41,392 |
|
|
5,620 |
|
|
4,110 |
|
|
1,165 |
|
|
3,883 |
|
|
(737 |
) |
|
55,433 |
|
|
Selling, general and
administrative |
7,057 |
|
|
17,691 |
|
|
4,070 |
|
|
373 |
|
|
1,317 |
|
|
— |
|
|
30,508 |
|
|
Depreciation, depletion,
amortization and accretion |
6,957 |
|
|
7,066 |
|
|
2,390 |
|
|
2,224 |
|
|
3,550 |
|
|
— |
|
|
22,187 |
|
|
Operating income (loss) |
528 |
|
|
(17,680 |
) |
|
1,273 |
|
|
(3,159 |
) |
|
(4,040 |
) |
|
— |
|
|
(23,078 |
) |
|
Interest expense, net |
685 |
|
|
273 |
|
|
95 |
|
|
5 |
|
|
133 |
|
|
— |
|
|
1,191 |
|
|
Other (income) expense,
net |
(8,355 |
) |
|
170 |
|
|
86 |
|
|
23 |
|
|
(1,142 |
) |
|
— |
|
|
(9,218 |
) |
|
Income (loss) before income
taxes |
$ |
8,198 |
|
|
$ |
(18,123 |
) |
|
$ |
1,092 |
|
|
$ |
(3,187 |
) |
|
$ |
(3,031 |
) |
|
$ |
— |
|
|
$ |
(15,051 |
) |
|
Three
months ended December 31, 2019 |
Infrastructure |
Well Completion |
Sand |
Drilling |
All Other |
Eliminations |
Total |
Revenue from external customers |
$ |
25,601 |
|
|
$ |
24,515 |
|
|
$ |
2,946 |
|
|
$ |
4,637 |
|
|
$ |
9,938 |
|
|
$ |
— |
|
|
$ |
67,637 |
|
|
Intersegment revenues |
— |
|
|
414 |
|
|
— |
|
|
14 |
|
|
407 |
|
|
(835 |
) |
|
— |
|
|
Total revenue |
25,601 |
|
|
24,929 |
|
|
2,946 |
|
|
4,651 |
|
|
10,345 |
|
|
(835 |
) |
|
67,637 |
|
|
Cost of revenue, exclusive of
depreciation, depletion, amortization and accretion |
29,925 |
|
|
20,354 |
|
|
6,162 |
|
|
6,927 |
|
|
12,201 |
|
|
— |
|
|
75,569 |
|
|
Intersegment cost of
revenues |
— |
|
|
339 |
|
|
— |
|
|
206 |
|
|
290 |
|
|
(835 |
) |
|
— |
|
|
Total cost of revenue |
29,925 |
|
|
20,693 |
|
|
6,162 |
|
|
7,133 |
|
|
12,491 |
|
|
(835 |
) |
|
75,569 |
|
|
Selling, general and
administrative |
5,097 |
|
|
1,428 |
|
|
792 |
|
|
1,063 |
|
|
1,958 |
|
|
— |
|
|
10,338 |
|
|
Depreciation, depletion,
amortization and accretion |
7,662 |
|
|
9,985 |
|
|
2,628 |
|
|
3,361 |
|
|
4,885 |
|
|
— |
|
|
28,521 |
|
|
Impairment of goodwill |
— |
|
|
23,423 |
|
|
2,684 |
|
|
— |
|
|
4,363 |
|
|
— |
|
|
30,470 |
|
|
Impairment of other long-lived
assets |
— |
|
|
— |
|
|
— |
|
|
2,955 |
|
|
1,055 |
|
|
— |
|
|
4,010 |
|
|
Operating loss |
(17,083 |
) |
|
(30,600 |
) |
|
(9,320 |
) |
|
(9,861 |
) |
|
(14,407 |
) |
|
— |
|
|
(81,271 |
) |
|
Interest expense, net |
660 |
|
|
304 |
|
|
48 |
|
|
217 |
|
|
257 |
|
|
— |
|
|
1,486 |
|
|
Other (income) expense,
net |
(7,236 |
) |
|
574 |
|
|
— |
|
|
14 |
|
|
(624 |
) |
|
— |
|
|
(7,272 |
) |
|
Loss before income taxes |
$ |
(10,507 |
) |
|
$ |
(31,478 |
) |
|
$ |
(9,368 |
) |
|
$ |
(10,092 |
) |
|
$ |
(14,040 |
) |
|
$ |
— |
|
|
$ |
(75,485 |
) |
|
Three
months ended September 30, 2020 |
Infrastructure |
Well Completion |
Sand |
Drilling |
All Other |
Eliminations |
Total |
Revenue from external customers |
$ |
43,582 |
|
|
$ |
15,738 |
|
|
$ |
6,031 |
|
|
$ |
1,193 |
|
|
$ |
3,990 |
|
|
$ |
— |
|
|
$ |
70,534 |
|
|
Intersegment revenues |
— |
|
|
27 |
|
|
— |
|
|
11 |
|
|
687 |
|
|
(725 |
) |
|
— |
|
|
Total revenue |
43,582 |
|
|
15,765 |
|
|
6,031 |
|
|
1,204 |
|
|
4,677 |
|
|
(725 |
) |
|
70,534 |
|
|
Cost of revenue, exclusive of
depreciation, depletion, amortization and accretion |
28,883 |
|
|
6,510 |
|
|
4,154 |
|
|
1,955 |
|
|
4,427 |
|
|
— |
|
|
45,929 |
|
|
Intersegment cost of
revenues |
162 |
|
|
449 |
|
|
— |
|
|
— |
|
|
114 |
|
|
(725 |
) |
|
— |
|
|
Total cost of revenue |
29,045 |
|
|
6,959 |
|
|
4,154 |
|
|
1,955 |
|
|
4,541 |
|
|
(725 |
) |
|
45,929 |
|
|
Selling, general and
administrative |
7,227 |
|
|
1,721 |
|
|
1,056 |
|
|
382 |
|
|
1,794 |
|
|
— |
|
|
12,180 |
|
|
Depreciation, depletion,
amortization and accretion |
7,294 |
|
|
7,189 |
|
|
2,700 |
|
|
2,294 |
|
|
3,655 |
|
|
— |
|
|
23,132 |
|
|
Operating income (loss) |
16 |
|
|
(104 |
) |
|
(1,879 |
) |
|
(3,427 |
) |
|
(5,313 |
) |
|
— |
|
|
(10,707 |
) |
|
Interest expense, net |
623 |
|
|
253 |
|
|
70 |
|
|
60 |
|
|
92 |
|
|
— |
|
|
1,098 |
|
|
Other (income) expense,
net |
(8,375 |
) |
|
(1,156 |
) |
|
1,792 |
|
|
20 |
|
|
(1,323 |
) |
|
— |
|
|
(9,042 |
) |
|
Income (loss) before income
taxes |
$ |
7,768 |
|
|
$ |
799 |
|
|
$ |
(3,741 |
) |
|
$ |
(3,507 |
) |
|
$ |
(4,082 |
) |
|
$ |
— |
|
|
$ |
(2,763 |
) |
|
Year
ended December 31, 2020 |
Infrastructure |
Well Completion |
Sand |
Drilling |
All Other |
Eliminations |
Total |
Revenue from external customers |
$ |
155,241 |
|
|
$ |
87,201 |
|
|
$ |
34,265 |
|
|
$ |
7,746 |
|
|
$ |
28,623 |
|
|
$ |
— |
|
|
$ |
313,076 |
|
|
Intersegment revenues |
— |
|
|
1,124 |
|
|
95 |
|
|
39 |
|
|
2,716 |
|
|
(3,974 |
) |
|
— |
|
|
Total revenue |
155,241 |
|
|
88,325 |
|
|
34,360 |
|
|
7,785 |
|
|
31,339 |
|
|
(3,974 |
) |
|
313,076 |
|
|
Cost of revenue, exclusive of
depreciation, depletion, amortization and accretion |
122,046 |
|
|
45,647 |
|
|
25,955 |
|
|
10,757 |
|
|
27,616 |
|
|
— |
|
|
232,021 |
|
|
Intersegment cost of
revenues |
323 |
|
|
1,836 |
|
|
— |
|
|
152 |
|
|
1,663 |
|
|
(3,974 |
) |
|
— |
|
|
Total cost of revenue |
122,369 |
|
|
47,483 |
|
|
25,955 |
|
|
10,909 |
|
|
29,279 |
|
|
(3,974 |
) |
|
232,021 |
|
|
Selling, general and
administrative |
26,058 |
|
|
23,039 |
|
|
7,807 |
|
|
3,149 |
|
|
7,132 |
|
|
— |
|
|
67,185 |
|
|
Depreciation, depletion,
amortization and accretion |
29,373 |
|
|
30,411 |
|
|
9,771 |
|
|
10,039 |
|
|
15,723 |
|
|
— |
|
|
95,317 |
|
|
Impairment of goodwill |
— |
|
|
53,406 |
|
|
— |
|
|
— |
|
|
1,567 |
|
|
— |
|
|
54,973 |
|
|
Impairment of other long-lived
assets |
— |
|
|
4,203 |
|
|
— |
|
|
326 |
|
|
8,368 |
|
|
— |
|
|
12,897 |
|
|
Operating loss |
(22,559 |
) |
|
(70,217 |
) |
|
(9,173 |
) |
|
(16,638 |
) |
|
(30,730 |
) |
|
— |
|
|
(149,317 |
) |
|
Interest expense, net |
2,775 |
|
|
1,130 |
|
|
312 |
|
|
454 |
|
|
726 |
|
|
— |
|
|
5,397 |
|
|
Other (income) expense,
net |
(32,437 |
) |
|
(2,274 |
) |
|
1,839 |
|
|
(227 |
) |
|
(1,839 |
) |
|
— |
|
|
(34,938 |
) |
|
Income (loss) before income
taxes |
$ |
7,103 |
|
|
$ |
(69,073 |
) |
|
$ |
(11,324 |
) |
|
$ |
(16,865 |
) |
|
$ |
(29,617 |
) |
|
$ |
— |
|
|
$ |
(119,776 |
) |
|
Year
ended December 31, 2019 |
Infrastructure |
Well Completion |
Sand |
Drilling |
All Other |
Eliminations |
Total |
Revenue from external customers |
$ |
210,691 |
|
|
$ |
241,951 |
|
|
$ |
67,267 |
|
|
$ |
31,728 |
|
|
$ |
73,375 |
|
|
$ |
— |
|
|
$ |
625,012 |
|
|
Intersegment revenues |
2,573 |
|
|
1,851 |
|
|
29,796 |
|
|
236 |
|
|
15,232 |
|
|
(49,688 |
) |
|
— |
|
|
Total revenue |
213,264 |
|
|
243,802 |
|
|
97,063 |
|
|
31,964 |
|
|
88,607 |
|
|
(49,688 |
) |
|
625,012 |
|
|
Cost of revenue, exclusive of
depreciation, depletion, amortization and accretion |
160,449 |
|
|
174,816 |
|
|
87,637 |
|
|
35,925 |
|
|
84,961 |
|
|
— |
|
|
543,788 |
|
|
Intersegment cost of
revenues |
12,820 |
|
|
31,727 |
|
|
15 |
|
|
1,028 |
|
|
4,158 |
|
|
(49,748 |
) |
|
— |
|
|
Total cost of revenue |
173,269 |
|
|
206,543 |
|
|
87,652 |
|
|
36,953 |
|
|
89,119 |
|
|
(49,748 |
) |
|
543,788 |
|
|
Selling, general and
administrative |
23,235 |
|
|
10,889 |
|
|
5,006 |
|
|
4,177 |
|
|
8,245 |
|
|
— |
|
|
51,552 |
|
|
Depreciation, depletion,
amortization and accretion |
30,349 |
|
|
40,159 |
|
|
14,050 |
|
|
13,143 |
|
|
19,332 |
|
|
— |
|
|
117,033 |
|
|
Impairment of goodwill |
— |
|
|
23,423 |
|
|
2,684 |
|
|
— |
|
|
7,557 |
|
|
— |
|
|
33,664 |
|
|
Impairment of other long-lived
assets |
— |
|
|
— |
|
|
— |
|
|
2,955 |
|
|
4,403 |
|
|
— |
|
|
7,358 |
|
|
Operating loss |
(13,589 |
) |
|
(37,212 |
) |
|
(12,329 |
) |
|
(25,264 |
) |
|
(40,049 |
) |
|
60 |
|
|
(128,383 |
) |
|
Interest expense, net |
1,674 |
|
|
1,228 |
|
|
193 |
|
|
862 |
|
|
1,001 |
|
|
— |
|
|
4,958 |
|
|
Other (income) expense,
net |
(41,949 |
) |
|
580 |
|
|
67 |
|
|
(9 |
) |
|
(905 |
) |
|
— |
|
|
(42,216 |
) |
|
Income (loss) before income
taxes |
$ |
26,686 |
|
|
$ |
(39,020 |
) |
|
$ |
(12,589 |
) |
|
$ |
(26,117 |
) |
|
$ |
(40,145 |
) |
|
$ |
60 |
|
|
$ |
(91,125 |
) |
|
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 |
|
Years Ended December 31, |
|
December 31, |
|
September 30, |
|
December 31, |
Reconciliation of
Adjusted EBITDA to net (loss) income: |
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
Net (loss) income |
$ |
(11,861 |
) |
|
|
$ |
(60,779 |
) |
|
|
$ |
3,430 |
|
|
|
$ |
(107,607 |
) |
|
|
$ |
(79,044 |
) |
|
Depreciation, depletion,
amortization and accretion expense |
22,187 |
|
|
|
28,521 |
|
|
|
23,132 |
|
|
|
95,317 |
|
|
|
117,033 |
|
|
Impairment of goodwill |
— |
|
|
|
30,470 |
|
|
|
— |
|
|
|
54,973 |
|
|
|
33,664 |
|
|
Impairment of other long-lived
assets |
— |
|
|
|
4,010 |
|
|
|
— |
|
|
|
12,897 |
|
|
|
7,358 |
|
|
Inventory obsolescence
charges |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,349 |
|
|
Acquisition related costs |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
45 |
|
|
Stock based compensation |
354 |
|
|
|
811 |
|
|
|
353 |
|
|
|
1,952 |
|
|
|
4,177 |
|
|
Interest expense, net |
1,191 |
|
|
|
1,486 |
|
|
|
1,098 |
|
|
|
5,397 |
|
|
|
4,958 |
|
|
Other income, net |
(9,218 |
) |
|
|
(7,272 |
) |
|
|
(9,042 |
) |
|
|
(34,938 |
) |
|
|
(42,216 |
) |
|
Benefit for income taxes |
(3,190 |
) |
|
|
(14,706 |
) |
|
|
(6,193 |
) |
|
|
(12,169 |
) |
|
|
(12,081 |
) |
|
Interest on trade accounts
receivable |
8,077 |
|
|
|
7,174 |
|
|
|
9,285 |
|
|
|
34,130 |
|
|
|
42,040 |
|
|
Adjusted EBITDA |
$ |
7,540 |
|
|
|
$ |
(10,285 |
) |
|
|
$ |
22,063 |
|
|
|
$ |
49,952 |
|
|
|
$ |
77,283 |
|
|
Infrastructure Services
|
Three Months Ended |
|
Years Ended December 31, |
|
December 31, |
|
September 30, |
|
December 31, |
Reconciliation of
Adjusted EBITDA to net income (loss): |
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
Net income (loss) |
$ |
6,150 |
|
|
|
$ |
(13,161 |
) |
|
|
$ |
6,122 |
|
|
|
$ |
(30 |
) |
|
|
$ |
18,778 |
|
|
Depreciation and amortization
expense |
6,957 |
|
|
|
7,662 |
|
|
|
7,294 |
|
|
|
29,373 |
|
|
|
30,349 |
|
|
Acquisition related costs |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12 |
|
|
Stock based compensation |
156 |
|
|
|
175 |
|
|
|
139 |
|
|
|
580 |
|
|
|
822 |
|
|
Interest expense |
685 |
|
|
|
660 |
|
|
|
623 |
|
|
|
2,775 |
|
|
|
1,674 |
|
|
Other income, net |
(8,355 |
) |
|
|
(7,236 |
) |
|
|
(8,375 |
) |
|
|
(32,437 |
) |
|
|
(41,949 |
) |
|
Provision for income
taxes |
2,048 |
|
|
|
2,654 |
|
|
|
1,646 |
|
|
|
7,133 |
|
|
|
7,908 |
|
|
Interest on trade accounts
receivable |
8,418 |
|
|
|
7,174 |
|
|
|
8,170 |
|
|
|
32,214 |
|
|
|
42,040 |
|
|
Adjusted EBITDA |
$ |
16,059 |
|
|
|
$ |
(2,072 |
) |
|
|
$ |
15,619 |
|
|
|
$ |
39,608 |
|
|
|
$ |
59,634 |
|
|
Well Completion Services
|
Three Months Ended |
|
Years Ended December 31, |
|
December 31, |
|
September 30, |
|
December 31, |
Reconciliation of
Adjusted EBITDA to net (loss) income: |
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
Net (loss) income |
$ |
(18,123 |
) |
|
|
$ |
(31,478 |
) |
|
|
$ |
799 |
|
|
|
$ |
(69,073 |
) |
|
|
$ |
(39,020 |
) |
|
Depreciation and amortization
expense |
7,066 |
|
|
|
9,985 |
|
|
|
7,189 |
|
|
|
30,411 |
|
|
|
40,159 |
|
|
Impairment of goodwill |
— |
|
|
|
23,423 |
|
|
|
— |
|
|
|
53,406 |
|
|
|
23,423 |
|
|
Impairment of other long-lived
assets |
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,203 |
|
|
|
— |
|
|
Acquisition related costs |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18 |
|
|
Stock based compensation |
70 |
|
|
|
296 |
|
|
|
76 |
|
|
|
527 |
|
|
|
1,693 |
|
|
Interest expense |
273 |
|
|
|
304 |
|
|
|
253 |
|
|
|
1,130 |
|
|
|
1,228 |
|
|
Other expense (income),
net |
170 |
|
|
|
574 |
|
|
|
(1,156 |
) |
|
|
(2,274 |
) |
|
|
580 |
|
|
Interest on trade accounts
receivable |
(318 |
) |
|
|
— |
|
|
|
1,073 |
|
|
|
1,888 |
|
|
|
— |
|
|
Adjusted EBITDA |
$ |
(10,862 |
) |
|
|
$ |
3,104 |
|
|
|
$ |
8,234 |
|
|
|
$ |
20,218 |
|
|
|
$ |
28,081 |
|
|
Natural Sand Proppant Services
|
Three Months Ended |
|
Years Ended December 31, |
|
December 31, |
|
September 30, |
|
December 31, |
Reconciliation of
Adjusted EBITDA to net income (loss): |
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
Net income (loss) |
$ |
1,092 |
|
|
|
$ |
(9,368 |
) |
|
|
$ |
(3,741 |
) |
|
|
$ |
(11,324 |
) |
|
|
$ |
(12,589 |
) |
|
Depreciation, depletion,
amortization and accretion expense |
2,390 |
|
|
|
2,628 |
|
|
|
2,700 |
|
|
|
9,771 |
|
|
|
14,050 |
|
|
Impairment of goodwill |
— |
|
|
|
2,684 |
|
|
|
— |
|
|
|
— |
|
|
|
2,684 |
|
|
Acquisition related costs |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8 |
|
|
Stock based compensation |
70 |
|
|
|
156 |
|
|
|
77 |
|
|
|
425 |
|
|
|
812 |
|
|
Interest expense |
95 |
|
|
|
48 |
|
|
|
70 |
|
|
|
312 |
|
|
|
193 |
|
|
Other expense, net |
86 |
|
|
|
— |
|
|
|
1,792 |
|
|
|
1,839 |
|
|
|
67 |
|
|
Interest on trade accounts
receivable |
(23 |
) |
|
|
— |
|
|
|
26 |
|
|
|
3 |
|
|
|
— |
|
|
Adjusted EBITDA |
$ |
3,710 |
|
|
|
$ |
(3,852 |
) |
|
|
$ |
924 |
|
|
|
$ |
1,026 |
|
|
|
$ |
5,225 |
|
|
Drilling Services
|
Three Months Ended |
|
Years Ended December 31, |
|
December 31, |
|
September 30, |
|
December 31, |
Reconciliation of
Adjusted EBITDA to net loss: |
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
Net loss |
$ |
(3,187 |
) |
|
|
$ |
(10,092 |
) |
|
|
$ |
(3,507 |
) |
|
|
$ |
(16,865 |
) |
|
|
$ |
(26,117 |
) |
|
Depreciation expense |
2,224 |
|
|
|
3,361 |
|
|
|
2,294 |
|
|
|
10,039 |
|
|
|
13,143 |
|
|
Impairment of other long-lived
assets |
— |
|
|
|
2,955 |
|
|
|
— |
|
|
|
326 |
|
|
|
2,955 |
|
|
Acquisition related costs |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
Stock based compensation |
36 |
|
|
|
82 |
|
|
|
38 |
|
|
|
203 |
|
|
|
361 |
|
|
Interest expense |
5 |
|
|
|
217 |
|
|
|
60 |
|
|
|
454 |
|
|
|
862 |
|
|
Other expense (income),
net |
23 |
|
|
|
14 |
|
|
|
20 |
|
|
|
(227 |
) |
|
|
(9 |
) |
|
Adjusted EBITDA |
$ |
(899 |
) |
|
|
$ |
(3,463 |
) |
|
|
$ |
(1,095 |
) |
|
|
$ |
(6,070 |
) |
|
|
$ |
(8,803 |
) |
|
Other Services(a)
|
Three Months Ended |
|
Years Ended December 31, |
|
December 31, |
|
September 30, |
|
December 31, |
Reconciliation of
Adjusted EBITDA to net income (loss): |
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
Net income (loss) |
$ |
2,207 |
|
|
|
$ |
3,320 |
|
|
|
$ |
3,757 |
|
|
|
$ |
(10,315 |
) |
|
|
$ |
(20,156 |
) |
|
Depreciation, amortization and
accretion expense |
3,550 |
|
|
|
4,885 |
|
|
|
3,655 |
|
|
|
15,723 |
|
|
|
19,332 |
|
|
Impairment of goodwill |
— |
|
|
|
4,363 |
|
|
|
— |
|
|
|
1,567 |
|
|
|
7,557 |
|
|
Impairment of other long-lived
assets |
— |
|
|
|
1,055 |
|
|
|
— |
|
|
|
8,368 |
|
|
|
4,403 |
|
|
Inventory obsolescence
charges |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,349 |
|
|
Acquisition related costs |
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5 |
|
|
Stock based compensation |
22 |
|
|
|
102 |
|
|
|
23 |
|
|
|
217 |
|
|
|
489 |
|
|
Interest expense, net |
133 |
|
|
|
257 |
|
|
|
92 |
|
|
|
726 |
|
|
|
1,001 |
|
|
Other income, net |
(1,142 |
) |
|
|
(624 |
) |
|
|
(1,323 |
) |
|
|
(1,839 |
) |
|
|
(905 |
) |
|
Benefit for income taxes |
(5,238 |
) |
|
|
(17,360 |
) |
|
|
(7,839 |
) |
|
|
(19,302 |
) |
|
|
(19,989 |
) |
|
Interest on trade accounts
receivable |
— |
|
|
|
— |
|
|
|
16 |
|
|
|
25 |
|
|
|
— |
|
|
Adjusted EBITDA |
$ |
(468 |
) |
|
|
$ |
(4,002 |
) |
|
|
$ |
(1,619 |
) |
|
|
$ |
(4,830 |
) |
|
|
$ |
(6,914 |
) |
|
a. |
Includes results for Mammoth's aviation, coil tubing, pressure
control, flowback, cementing, acidizing, equipment rentals, crude
oil hauling, full service transportation and remote accommodations,
equipment manufacturing and infrastructure engineering and design
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 of goodwill and
impairment of other long-lived assets, 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 |
|
Years Ended December 31, |
|
December 31, |
|
September 30, |
|
December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
|
(in thousands, except per share amounts) |
Net (loss) income, as reported |
$ |
(11,861 |
) |
|
|
$ |
(60,779 |
) |
|
|
$ |
3,430 |
|
|
$ |
(107,607 |
) |
|
|
$ |
(79,044 |
) |
|
Impairment of goodwill |
— |
|
|
|
30,470 |
|
|
|
— |
|
|
54,973 |
|
|
|
33,664 |
|
|
Impairment of other long-lived assets |
— |
|
|
|
4,010 |
|
|
|
— |
|
|
12,897 |
|
|
|
7,358 |
|
|
Adjusted net (loss)
income |
$ |
(11,861 |
) |
|
|
$ |
(26,299 |
) |
|
|
$ |
3,430 |
|
|
$ |
(39,737 |
) |
|
|
$ |
(38,022 |
) |
|
|
|
|
|
|
|
|
|
|
|
Basic (loss) earnings per
share, as reported |
$ |
(0.26 |
) |
|
|
$ |
(1.35 |
) |
|
|
$ |
0.07 |
|
|
$ |
(2.36 |
) |
|
|
$ |
(1.76 |
) |
|
Impairment of goodwill |
— |
|
|
|
0.68 |
|
|
|
— |
|
|
1.20 |
|
|
|
0.75 |
|
|
Impairment of other long-lived assets |
— |
|
|
|
0.09 |
|
|
|
— |
|
|
0.28 |
|
|
|
0.16 |
|
|
Adjusted basic (loss) earnings
per share |
$ |
(0.26 |
) |
|
|
$ |
(0.58 |
) |
|
|
$ |
0.07 |
|
|
$ |
(0.88 |
) |
|
|
$ |
(0.85 |
) |
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) earnings per
share, as reported |
$ |
(0.26 |
) |
|
|
$ |
(1.35 |
) |
|
|
$ |
0.07 |
|
|
$ |
(2.36 |
) |
|
|
$ |
(1.76 |
) |
|
Impairment of goodwill |
— |
|
|
|
0.68 |
|
|
|
— |
|
|
1.20 |
|
|
|
0.75 |
|
|
Impairment of other long-lived assets |
— |
|
|
|
0.09 |
|
|
|
— |
|
|
0.28 |
|
|
|
0.16 |
|
|
Adjusted diluted (loss)
earnings per share |
$ |
(0.26 |
) |
|
|
$ |
(0.58 |
) |
|
|
$ |
0.07 |
|
|
$ |
(0.88 |
) |
|
|
$ |
(0.85 |
) |
|
Mammoth Energy Services (NASDAQ:TUSK)
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