OKLAHOMA
CITY, April 27, 2023 /PRNewswire/ -- Mammoth
Energy Services, Inc. ("Mammoth" or the "Company") (NASDAQ: TUSK)
today reported financial and operational results for the first
quarter ended March 31, 2023.
Financial Overview for the First Quarter 2023:
Total revenue was $116.3 million
for the first quarter of 2023, an increase of 87% compared to
$62.3 million for the same quarter of
2022 and an increase of 13% compared to $102.9 million for the fourth quarter of
2022.
Net income for the first quarter of 2023 was $8.4 million, or $0.17 per diluted share, compared to a net loss
of $14.8 million, or a $0.32 loss per share, for the same quarter of
2022 and net income of $4.8 million,
or $0.10 per share, for the fourth
quarter of 2022.
Adjusted EBITDA (as defined and reconciled below) was
$30.7 million for the first quarter
of 2023, an increase of 230% compared to $9.3 million for the same quarter of 2022 and an
increase of 27% compared to $24.1
million for the fourth quarter of 2022.
Arty Straehla, Chief Executive Officer of Mammoth commented,
"Our first quarter performance was in line with our expectations,
contributing to significant year-over-year growth in revenue, net
income and Adjusted EBITDA. Our talented and hard-working teams
throughout the organization continue to manage through a
challenging economic environment for our customers, especially
related to supply chain constraints that persist in many of our
business segments. Our Well Completion Services division generated
strong growth in the quarter, however, the oil field services
markets that we serve are now being negatively impacted by lower
commodity prices, in particular natural gas prices, which are
restricting utilization of our well completion services and
capacity growth. Natural gas prices have been cut nearly in half
since the end of 2022, which is resulting in a reduction in
completions activity across the industry, particularly in the
northeast where we have a concentration of frac fleets. While we
remain bullish long-term on natural gas, in the near-term, the
lower commodity prices are reducing activity and leading to more
calendar white space, which we expect is likely to reduce near-term
utilization in our well completion segment as we adjust to market
conditions. As we continue to work with our customers to keep as
many fleets active as we can, we are also utilizing our extensive
experience to manage our assets and the variable costs in this
segment as we adjust to market conditions. We now plan to
significantly reduce our capital expenditures for the year to
approximately $24 million."
Commenting further, Straehla said, "In our Infrastructure
Services division, we experienced strong year-over-year revenue and
profitability growth due to operational improvements, team
performance and higher utilization of crews and equipment. The
bidding and pricing environment for infrastructure services
throughout our footprint continue to be robust, with added
opportunities expected from the Infrastructure Investment and Jobs
Act (IIJA). This business segment, that has grown organically, we
believe will be a key growth driver for Mammoth over the long term
and I'm pleased with its continual progress. In addition, the sand
business also grew in the quarter compared to last year, and we are
pleased with our team's performance. Mammoth has a diverse
portfolio of assets and businesses across several dynamic market
segments that we believe possess an ability to adapt quickly to
evolving market conditions. Our experienced team remains
focused on managing this portfolio efficiently and effectively to
create long-term value for all of our stakeholders."
Well Completion Services
Mammoth's well completion
services division contributed revenue (inclusive of inter-segment
revenue) of $67.3 million on 2,018
stages for the first quarter of 2023, compared to $23.9 million on 699 stages for the same quarter
of 2022 and $51.4 million on 1,837
stages for the fourth quarter of 2022. On average, 3.6 of the
Company's fleets were active for the first quarter of 2023 compared
to an average utilization of 1.6 fleets during the same quarter of
2022 and 3.4 fleets during the fourth quarter of 2022.
Infrastructure Services
Mammoth's infrastructure
services division contributed revenue of $28.3 million for the first quarter of 2023
compared to $23.0 million for the
same quarter of 2022 and $29.6
million for the fourth quarter of 2022. Average crew count
was 88 crews during the first quarter of 2023 compared to 85 crews
during the same quarter of 2022 and 93 crews during the fourth
quarter of 2022.
Natural Sand Proppant Services
Mammoth's natural sand
proppant services division contributed revenue (inclusive of
inter-segment revenue) of $12.5
million for the first quarter of 2023 compared to
$9.2 million for the same quarter of
2022 and $13.8 million for the fourth
quarter of 2022. In the first quarter of 2023, the Company sold
approximately 391,000 tons of sand at an average sales price of
$31.02 per ton compared to sales of
approximately 329,000 tons of sand at an average sales price of
$21.44 per ton during the same
quarter of 2022. In the fourth quarter of 2022, sales were
approximately 366,000 tons of sand at an average price of
$29.80 per ton.
Drilling Services
Mammoth's drilling services division
contributed revenue (inclusive of inter-segment revenue) of
$1.8 million for the first quarter of
2023 compared to $2.9 million for the
same quarter of 2022 and $2.4 million
for the fourth quarter of 2022. The decrease in drilling services
revenue is primarily attributable to decreased utilization for our
directional drilling business.
Other Services
Mammoth's other services, including
aviation, equipment rentals, remote accommodations and equipment
manufacturing, contributed revenue (inclusive of inter-segment
revenue) of $7.0 million for the
first quarter of 2023 compared to $4.7
million for the same quarter of 2022 and $6.4 million for the fourth quarter of 2022. The
increase in revenue is primarily due to improved utilization for
our equipment rental and remote accommodations businesses.
Selling, General and Administrative Expenses
Selling,
general and administrative ("SG&A") expenses were $8.4 million for the first quarter of 2023
compared to $8.7 million for the same
quarter of 2022 and $13.0 million for
the fourth quarter of 2022.
Following is a breakout of SG&A expense (in thousands):
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
2023
|
|
2022
|
|
2022
|
Cash
expenses:
|
|
|
|
|
|
Compensation and
benefits
|
$
4,277
|
|
$
2,983
|
|
$
3,932
|
Professional
services
|
1,929
|
|
3,637
|
|
3,434
|
Other(a)
|
1,911
|
|
1,906
|
|
1,885
|
Total cash SG&A
expense
|
8,117
|
|
8,526
|
|
9,251
|
Non-cash
expenses:
|
|
|
|
|
|
Bad debt (recoveries)
provision
|
(381)
|
|
(99)
|
|
3,501
|
Stock based
compensation
|
647
|
|
241
|
|
241
|
Total non-cash
SG&A expense
|
266
|
|
142
|
|
3,742
|
Total SG&A
expense
|
$
8,383
|
|
$
8,668
|
|
$
12,993
|
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 7% for
the first quarter of 2023 compared to 14% for the same quarter of
2022 and 13% for the fourth quarter of 2022.
Liquidity
As of March 31, 2023, Mammoth had cash
on hand of $11.7 million, outstanding
borrowings under its revolving credit facility of $84.6 million and $17.4
million of available borrowing capacity under its revolving
credit facility, after giving effect to $6.4
million of outstanding letters of credit and the requirement
to maintain a $10.0 million reserve
out of the available borrowing capacity. As of March 31, 2023,
Mammoth had total liquidity of $29.1
million.
As of April 26, 2023, Mammoth had cash on hand of
$9.5 million and outstanding
borrowings under its revolving credit facility of $76.0 million. As of April 26, 2023, the
Company had $26.0 million of
available borrowing capacity under its revolving credit facility,
after giving effect to $6.4 million
of outstanding letters of credit and the requirement to maintain a
$10.0 million reserve out of the
available borrowing capacity.
Capital Expenditures
The following table summarizes
Mammoth's capital expenditures by operating division for the
periods indicated (in thousands):
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
2023
|
|
2022
|
|
2022
|
Well completion
services(a)
|
$
5,772
|
|
$
801
|
|
$
3,374
|
Infrastructure
services(b)
|
203
|
|
398
|
|
62
|
Natural sand proppant
services(c)
|
—
|
|
—
|
|
54
|
Drilling
services(d)
|
—
|
|
2
|
|
55
|
Other(e)
|
—
|
|
60
|
|
120
|
Eliminations
|
61
|
|
(79)
|
|
(26)
|
Total capital
expenditures
|
$
6,036
|
|
$
1,182
|
|
$
3,639
|
a.
|
Capital expenditures
primarily for upgrades and maintenance to our pressure pumping
fleet for the periods presented.
|
b.
|
Capital expenditures
primarily for truck, tooling and equipment purchases for the
periods presented.
|
c.
|
Capital expenditures
primarily for maintenance for the periods presented.
|
d.
|
Capital expenditures
primarily for maintenance for the periods presented.
|
e.
|
Capital expenditures
primarily for equipment for the Company's rental businesses for the
periods presented.
|
Conference Call Information
Mammoth will host a
conference call on Thursday, April 27,
2023 at 4:00 p.m. Central time
(5:00 p.m. Eastern time) to discuss
its first quarter financial and operational results. The telephone
number to access the conference call is 1-201-389-0872. The
conference call will also be webcast live on
https://ir.mammothenergy.com/events-presentations. Please submit
any questions for management prior to the call via email to
TUSK@dennardlascar.com.
About Mammoth Energy Services, Inc.
Mammoth is an
integrated, growth-oriented energy services company focused on the
providing products and services to enable the exploration and
development of North American onshore unconventional oil and
natural gas reserves as well as the construction and repair of the
electric grid for private utilities, public investor-owned
utilities and co-operative utilities through its infrastructure
services businesses. Mammoth's suite of services and products
include: well completion services, infrastructure services, natural
sand and proppant services, drilling services and other energy
services. For more information, please visit
www.mammothenergy.com.
Contacts:
Mark Layton, CFO
Mammoth Energy Services, Inc
investors@mammothenergy.com
Rick Black / Ken Dennard
Dennard Lascar Investor
Relations
TUSK@dennardlascar.com
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: any continuing impacts of the COVID-19 pandemic,
related global and national health concerns and economic
repercussions; demand for our services; the volatility of oil and
natural gas prices and actions by OPEC members and other exporting
nations affecting commodities prices and production levels; the
impact of the war in Ukraine on
the global energy and capital markets and global stability;
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; inflationary pressures; rising interest rates and
their impact on the cost of capital; instability in the banking and
financial services sectors; 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 ("Cobra") by the Puerto Rico Electric Power
Authority ("PREPA"); the failure to receive or delays in receiving
governmental authorizations, approvals and/or payments, including
payments with respect to the PREPA account receivable for prior
services to PREPA performed by Cobra; 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, including concerns over a
potential economic slowdown or recession; impacts of the recent
federal infrastructure bill on the infrastructure industry and our
infrastructure services business; the loss of or interruption in
operations of one or more of Mammoth's significant suppliers or
customers; the loss of management and/or crews; the outcome or
settlement of our litigation matters and the effect on our
financial condition and results of operations; the effects of
government regulation, permitting and other legal requirements;
operating risks; the adequacy of capital resources and liquidity;
Mammoth's ability to (i) continue to comply with or, if applicable,
obtain a waiver of forecasted or actual non-compliance with certain
financial covenants from its lenders and comply with other terms
and conditions under its amended revolving credit facility, as
amended, (ii) extend, repay or refinance its revolving credit
facility at or prior to maturity on the terms acceptable to Mammoth
or at all and (iii) meet its financial projections associated with
reducing its debt; 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
|
|
March
31,
|
|
December
31,
|
|
|
2023
|
|
2022
|
CURRENT
ASSETS
|
|
(in
thousands)
|
Cash and cash
equivalents
|
|
$
11,727
|
|
$
17,282
|
Accounts receivable,
net
|
|
475,582
|
|
456,465
|
Receivables from
related parties, net
|
|
115
|
|
223
|
Inventories
|
|
10,230
|
|
8,883
|
Prepaid
expenses
|
|
10,056
|
|
13,219
|
Other current
assets
|
|
581
|
|
620
|
Total current
assets
|
|
508,291
|
|
496,692
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
132,529
|
|
138,066
|
Sand
reserves
|
|
61,830
|
|
61,830
|
Operating lease
right-of-use assets
|
|
11,907
|
|
10,656
|
Intangible assets,
net
|
|
1,587
|
|
1,782
|
Goodwill
|
|
11,717
|
|
11,717
|
Other non-current
assets
|
|
3,635
|
|
3,935
|
Total
assets
|
|
$
731,496
|
|
$
724,678
|
LIABILITIES AND
EQUITY
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Accounts
payable
|
|
$
57,174
|
|
$
47,391
|
Accrued expenses and
other current liabilities
|
|
38,485
|
|
52,297
|
Current operating
lease liability
|
|
5,858
|
|
5,447
|
Current portion of
long-term debt
|
|
84,614
|
|
83,520
|
Income taxes
payable
|
|
51,588
|
|
48,557
|
Total current
liabilities
|
|
237,719
|
|
237,212
|
|
|
|
|
|
Deferred income tax
liabilities
|
|
444
|
|
471
|
Long-term operating
lease liability
|
|
5,772
|
|
4,913
|
Asset retirement
obligation
|
|
4,017
|
|
3,981
|
Other long-term
liabilities
|
|
12,846
|
|
15,485
|
Total
liabilities
|
|
260,798
|
|
262,062
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Equity:
|
|
|
|
|
Common stock, $0.01
par value, 200,000,000 shares authorized, 47,713,342 and
47,312,270
issued and outstanding at March 31, 2023 and December 31,
2022
|
|
477
|
|
473
|
Additional paid in
capital
|
|
538,862
|
|
539,138
|
Accumulated
deficit
|
|
(64,803)
|
|
(73,154)
|
Accumulated other
comprehensive loss
|
|
(3,838)
|
|
(3,841)
|
Total
equity
|
|
470,698
|
|
462,616
|
Total liabilities and
equity
|
|
$
731,496
|
|
$
724,678
|
MAMMOTH ENERGY
SERVICES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
2023
|
|
2022
|
|
2022
|
|
(in thousands,
except per share amounts)
|
REVENUE
|
|
Services
revenue
|
$
103,637
|
|
$
53,667
|
|
$
88,963
|
Services revenue -
related parties
|
220
|
|
274
|
|
110
|
Product
revenue
|
12,463
|
|
8,357
|
|
13,836
|
Total
revenue
|
116,320
|
|
62,298
|
|
102,909
|
|
|
|
|
|
|
COST AND
EXPENSES
|
|
|
|
|
|
Services cost of
revenue (exclusive of depreciation, depletion, amortization and
accretion of $11,762, $15,355 and $11,819, respectively, for the
three months
ended March 31, 2023, March 31, 2022 and December 31,
2022)
|
80,977
|
|
46,567
|
|
67,502
|
Services cost of
revenue - related parties (exclusive of depreciation,
depletion,
amortization and accretion of $0, $0 and $0, respectively, for the
three months
ended March 31, 2023, March 31, 2022 and December 31,
2022)
|
31
|
|
135
|
|
135
|
Product cost of
revenue (exclusive of depreciation, depletion, amortization and
accretion of $1,186, $1,792 and $2,014, respectively, for the three
months
ended March 31, 2023, March 31, 2022 and December 31,
2022)
|
7,985
|
|
7,778
|
|
9,226
|
Selling, general and
administrative
|
8,383
|
|
8,668
|
|
12,993
|
Depreciation,
depletion, amortization and accretion
|
12,956
|
|
17,167
|
|
13,786
|
Gains on disposal of
assets, net
|
(361)
|
|
(196)
|
|
(170)
|
Total cost and
expenses
|
109,971
|
|
80,119
|
|
103,472
|
Operating income
(loss)
|
6,349
|
|
(17,821)
|
|
(563)
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
Interest expense,
net
|
(3,289)
|
|
(2,349)
|
|
(3,237)
|
Other income,
net
|
8,624
|
|
9,041
|
|
10,737
|
Total other
income
|
5,335
|
|
6,692
|
|
7,500
|
Income (loss) before
income taxes
|
11,684
|
|
(11,129)
|
|
6,937
|
Provision for income
taxes
|
3,333
|
|
3,688
|
|
2,165
|
Net income
(loss)
|
$
8,351
|
|
$
(14,817)
|
|
$
4,772
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
INCOME (LOSS)
|
|
|
|
|
|
Foreign currency
translation adjustment, net of tax of $0, $0 and $0,
respectively, for the three months ended March 31, 2023, March 31,
2022 and
December 31, 2022)
|
3
|
|
198
|
|
(59)
|
Comprehensive income
(loss)
|
$
8,354
|
|
$
(14,619)
|
|
$
4,713
|
|
|
|
|
|
|
Net income (loss) per
share (basic)
|
$
0.18
|
|
$
(0.32)
|
|
$
0.10
|
Net income (loss) per
share (diluted)
|
$
0.17
|
|
$
(0.32)
|
|
$
0.10
|
Weighted average number
of shares outstanding (basic)
|
47,443
|
|
46,845
|
|
47,312
|
Weighted average number
of shares outstanding (diluted)
|
48,002
|
|
46,845
|
|
47,963
|
MAMMOTH ENERGY
SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2023
|
|
2022
|
|
(in
thousands)
|
Cash flows from
operating activities:
|
|
|
|
Net income
(loss)
|
$
8,351
|
|
$
(14,817)
|
Adjustments to
reconcile net income (loss) to cash provided by (used in) operating
activities:
|
|
|
|
Stock based
compensation
|
647
|
|
241
|
Depreciation,
depletion, accretion and amortization
|
12,956
|
|
17,167
|
Amortization of debt
origination costs
|
188
|
|
186
|
Bad debt
recoveries
|
(381)
|
|
(99)
|
Gains on disposal of
assets, net
|
(361)
|
|
(196)
|
Gains from sales of
equipment damaged or lost down-hole
|
—
|
|
(397)
|
Deferred income
taxes
|
(27)
|
|
3,481
|
Other
|
174
|
|
535
|
Changes in assets and
liabilities:
|
|
|
|
Accounts receivable,
net
|
(18,643)
|
|
(3,898)
|
Receivables from
related parties, net
|
109
|
|
(225)
|
Inventories
|
(1,347)
|
|
(1,992)
|
Prepaid expenses and
other assets
|
3,203
|
|
3,404
|
Accounts
payable
|
8,602
|
|
1,041
|
Accrued expenses and
other liabilities
|
(13,262)
|
|
(7,013)
|
Income taxes
payable
|
3,031
|
|
201
|
Net cash provided by
(used in) operating activities
|
3,240
|
|
(2,381)
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Purchases of property
and equipment
|
(6,036)
|
|
(1,182)
|
Proceeds from disposal
of property and equipment
|
330
|
|
1,038
|
Net cash used in
investing activities
|
(5,706)
|
|
(144)
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Borrowings on
long-term debt
|
66,700
|
|
37,550
|
Repayments of
long-term debt
|
(65,606)
|
|
(35,317)
|
Payments on
sale-leaseback transaction
|
(1,214)
|
|
(868)
|
Principal payments on
financing leases and equipment financing notes
|
(2,044)
|
|
(629)
|
Other
|
(919)
|
|
—
|
Net cash (used in)
provided by financing activities
|
(3,083)
|
|
736
|
Effect of foreign
exchange rate on cash
|
(6)
|
|
8
|
Net change in cash and
cash equivalents
|
(5,555)
|
|
(1,781)
|
Cash and cash
equivalents at beginning of period
|
17,282
|
|
9,899
|
Cash and cash
equivalents at end of period
|
$
11,727
|
|
$
8,118
|
|
|
|
|
Supplemental disclosure
of cash flow information:
|
|
|
|
Cash paid for
interest
|
$
3,108
|
|
$
1,754
|
Cash paid for income
taxes, net of refunds received
|
$
(26)
|
|
$
6
|
Supplemental disclosure
of non-cash transactions:
|
|
|
|
Purchases of property
and equipment included in accounts payable
|
$
5,917
|
|
$
1,707
|
MAMMOTH ENERGY
SERVICES, INC.
SEGMENT INCOME STATEMENTS
(in thousands)
|
|
Three months ended
March 31, 2023
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
Revenue from external
customers
|
$
67,179
|
$
28,280
|
$
12,442
|
$
1,824
|
$
6,595
|
$
—
|
$
116,320
|
Intersegment
revenues
|
121
|
—
|
25
|
1
|
437
|
(584)
|
—
|
Total
revenue
|
67,300
|
28,280
|
12,467
|
1,825
|
7,032
|
(584)
|
116,320
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
52,037
|
22,476
|
7,860
|
1,922
|
4,698
|
—
|
88,993
|
Intersegment cost of
revenues
|
478
|
11
|
—
|
109
|
(14)
|
(584)
|
—
|
Total cost of
revenue
|
52,515
|
22,487
|
7,860
|
2,031
|
4,684
|
(584)
|
88,993
|
Selling, general and
administrative
|
2,492
|
4,211
|
503
|
313
|
864
|
—
|
8,383
|
Depreciation,
depletion, amortization and accretion
|
4,817
|
3,374
|
1,187
|
1,367
|
2,211
|
—
|
12,956
|
Gains on disposal of
assets, net
|
—
|
(127)
|
(16)
|
—
|
(218)
|
—
|
(361)
|
Operating income
(loss)
|
7,476
|
(1,665)
|
2,933
|
(1,886)
|
(509)
|
—
|
6,349
|
Interest expense,
net
|
929
|
1,845
|
156
|
160
|
199
|
—
|
3,289
|
Other (income) expense,
net
|
—
|
(8,808)
|
(2)
|
—
|
186
|
—
|
(8,624)
|
Income (loss) before
income taxes
|
$
6,547
|
$
5,298
|
$
2,779
|
$
(2,046)
|
$
(894)
|
$
—
|
$
11,684
|
Three months ended
March 31, 2022
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
Revenue from external
customers
|
$
23,630
|
$
23,009
|
$
8,347
|
$
2,852
|
$
4,460
|
$
—
|
$
62,298
|
Intersegment
revenues
|
244
|
—
|
832
|
3
|
272
|
(1,351)
|
—
|
Total
revenue
|
23,874
|
23,009
|
9,179
|
2,855
|
4,732
|
(1,351)
|
62,298
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
21,839
|
18,887
|
7,788
|
2,372
|
3,594
|
—
|
54,480
|
Intersegment cost of
revenues
|
1,031
|
16
|
—
|
160
|
70
|
(1,277)
|
—
|
Total cost of
revenue
|
22,870
|
18,903
|
7,788
|
2,532
|
3,664
|
(1,277)
|
54,480
|
Selling, general and
administrative
|
2,039
|
4,645
|
828
|
292
|
864
|
—
|
8,668
|
Depreciation,
depletion, amortization and accretion
|
6,444
|
4,314
|
1,795
|
1,680
|
2,934
|
—
|
17,167
|
Gains on disposal of
assets, net
|
(49)
|
(5)
|
(75)
|
—
|
(67)
|
—
|
(196)
|
Operating
loss
|
(7,430)
|
(4,848)
|
(1,157)
|
(1,649)
|
(2,663)
|
(74)
|
(17,821)
|
Interest expense,
net
|
371
|
1,542
|
162
|
104
|
170
|
—
|
2,349
|
Other (income) expense,
net
|
—
|
(9,582)
|
(4)
|
—
|
545
|
—
|
(9,041)
|
(Loss) income before
income taxes
|
$
(7,801)
|
$
3,192
|
$
(1,315)
|
$
(1,753)
|
$
(3,378)
|
$
(74)
|
$
(11,129)
|
Three months ended
December 31, 2022
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
Revenue from external
customers
|
$
51,292
|
$
29,559
|
$
13,817
|
$
2,425
|
$
5,816
|
$
—
|
$
102,909
|
Intersegment
revenues
|
147
|
—
|
25
|
—
|
570
|
(742)
|
—
|
Total
revenue
|
51,439
|
29,559
|
13,842
|
2,425
|
6,386
|
(742)
|
102,909
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
36,108
|
24,387
|
10,081
|
2,158
|
4,129
|
—
|
76,863
|
Intersegment cost of
revenues
|
475
|
23
|
—
|
109
|
133
|
(740)
|
—
|
Total cost of
revenue
|
36,583
|
24,410
|
10,081
|
2,267
|
4,262
|
(740)
|
76,863
|
Selling, general and
administrative
|
2,328
|
5,091
|
4,397
|
367
|
810
|
—
|
12,993
|
Depreciation,
depletion, amortization and accretion
|
4,140
|
3,675
|
2,015
|
1,539
|
2,417
|
—
|
13,786
|
(Gains) losses on
disposal of assets, net
|
(68)
|
—
|
1
|
113
|
(216)
|
—
|
(170)
|
Operating income
(loss)
|
8,456
|
(3,617)
|
(2,652)
|
(1,861)
|
(887)
|
(2)
|
(563)
|
Interest expense,
net
|
617
|
2,046
|
201
|
166
|
207
|
—
|
3,237
|
Other expense (income),
net
|
1
|
(10,522)
|
(4)
|
—
|
(212)
|
—
|
(10,737)
|
Income (loss) before
income taxes
|
$
7,838
|
$
4,859
|
$
(2,849)
|
$
(2,027)
|
$
(882)
|
$
(2)
|
$
6,937
|
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, gains on disposal of assets, net, stock based
compensation, interest expense, net, other (income) expense, net
(which is comprised of interest on trade accounts receivable and
certain legal expenses) 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
|
|
March
31,
|
|
December
31,
|
Reconciliation of
Adjusted EBITDA to net income (loss):
|
2023
|
|
2022
|
|
2022
|
Net income
(loss)
|
$
8,351
|
|
$
(14,817)
|
|
$
4,772
|
Depreciation,
depletion, amortization and accretion expense
|
12,956
|
|
17,167
|
|
13,786
|
Gains on disposal of
assets, net
|
(361)
|
|
(196)
|
|
(170)
|
Stock based
compensation
|
647
|
|
241
|
|
241
|
Interest expense,
net
|
3,289
|
|
2,349
|
|
3,237
|
Other income,
net
|
(8,624)
|
|
(9,041)
|
|
(10,737)
|
Provision for income
taxes
|
3,333
|
|
3,688
|
|
2,165
|
Interest on trade
accounts receivable
|
11,112
|
|
9,862
|
|
10,785
|
Adjusted
EBITDA
|
$
30,703
|
|
$
9,253
|
|
$
24,079
|
|
|
|
Well Completion
Services
|
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
Reconciliation of
Adjusted EBITDA to net income (loss):
|
2023
|
|
2022
|
|
2022
|
Net income
(loss)
|
$
6,547
|
|
$
(7,801)
|
|
$
7,838
|
Depreciation and
amortization expense
|
4,817
|
|
6,444
|
|
4,140
|
Gains on disposal of
assets, net
|
—
|
|
(49)
|
|
(68)
|
Stock based
compensation
|
291
|
|
87
|
|
106
|
Interest
expense
|
929
|
|
371
|
|
617
|
Other expense,
net
|
—
|
|
—
|
|
1
|
Adjusted
EBITDA
|
$
12,584
|
|
$
(948)
|
|
$
12,634
|
|
|
|
Infrastructure
Services
|
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
Reconciliation of
Adjusted EBITDA to net income:
|
2023
|
|
2022
|
|
2022
|
Net income
|
$
2,452
|
|
$
125
|
|
$
1,609
|
Depreciation and
amortization expense
|
3,374
|
|
4,314
|
|
3,675
|
Gains on disposal of
assets, net
|
(127)
|
|
(5)
|
|
—
|
Stock based
compensation
|
230
|
|
98
|
|
88
|
Interest
expense
|
1,845
|
|
1,542
|
|
2,046
|
Other income,
net
|
(8,808)
|
|
(9,582)
|
|
(10,522)
|
Provision for income
taxes
|
2,847
|
|
3,067
|
|
3,250
|
Interest on trade
accounts receivable
|
11,112
|
|
9,862
|
|
10,785
|
Adjusted
EBITDA
|
$
12,925
|
|
$
9,421
|
|
$
10,931
|
|
|
|
Natural Sand
Proppant Services
|
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
Reconciliation of
Adjusted EBITDA to net income (loss):
|
2023
|
|
2022
|
|
2022
|
Net income
(loss)
|
$
2,779
|
|
$
(1,315)
|
|
$
(2,849)
|
Depreciation,
depletion, amortization and accretion expense
|
1,187
|
|
1,795
|
|
2,015
|
(Gains) losses on
disposal of assets, net
|
(16)
|
|
(75)
|
|
1
|
Stock based
compensation
|
77
|
|
34
|
|
29
|
Interest
expense
|
156
|
|
162
|
|
201
|
Other income,
net
|
(2)
|
|
(4)
|
|
(4)
|
Adjusted
EBITDA
|
$
4,181
|
|
$
597
|
|
$
(607)
|
|
|
|
Drilling
Services
|
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
Reconciliation of
Adjusted EBITDA to net loss:
|
2023
|
|
2022
|
|
2022
|
Net loss
|
$
(2,046)
|
|
$
(1,753)
|
|
$
(2,027)
|
Depreciation
expense
|
1,367
|
|
1,680
|
|
1,539
|
Losses on disposal of
assets, net
|
—
|
|
—
|
|
113
|
Stock based
compensation
|
11
|
|
5
|
|
5
|
Interest
expense
|
160
|
|
104
|
|
166
|
Adjusted
EBITDA
|
$
(508)
|
|
$
36
|
|
$
(204)
|
|
|
|
Other
Services(a)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
Reconciliation of
Adjusted EBITDA to net (loss) income:
|
2023
|
|
2022
|
|
2022
|
Net (loss)
income
|
$
(1,381)
|
|
$
(3,999)
|
|
$
201
|
Depreciation,
amortization and accretion expense
|
2,211
|
|
2,934
|
|
2,417
|
Gains on disposal of
assets, net
|
(218)
|
|
(67)
|
|
(216)
|
Stock based
compensation
|
38
|
|
17
|
|
13
|
Interest expense,
net
|
199
|
|
170
|
|
207
|
Other expense (income),
net
|
186
|
|
545
|
|
(212)
|
Provision (benefit) for
income taxes
|
486
|
|
621
|
|
(1,085)
|
Adjusted
EBITDA
|
$
1,521
|
|
$
221
|
|
$
1,325
|
a.
|
Includes results for
Mammoth's aviation, equipment rentals, remote accommodations and
equipment manufacturing and corporate related activities. The
Company's corporate related activities do not generate
revenue.
|
View original
content:https://www.prnewswire.com/news-releases/mammoth-energy-services-inc-announces-first-quarter-2023-operational-and-financial-results-301810088.html
SOURCE Mammoth Energy Services, Inc.