OKLAHOMA
CITY, May 9, 2022 /PRNewswire/ -- Mammoth Energy
Services, Inc. ("Mammoth" or the "Company") (NASDAQ: TUSK) today
reported financial and operational results for the first quarter
ended March 31, 2022.
Financial Overview for the First
Quarter 2022:
Total revenue was $62.3 million
for the first quarter of 2022, as compared to $66.8 million for the same quarter of 2021 and
$57.2 million for the fourth quarter
of 2021.
Net loss for the first quarter of 2022 was $14.8 million, or a $0.32 loss per share, as compared to $12.4 million, or a $0.27 loss per share, for the same quarter of
2021, and $13.3 million, or a
$0.28 loss per share, for the fourth
quarter of 2021.
Adjusted EBITDA (as defined and reconciled below) was
$9.3 million for the first quarter of
2022, as compared to $9.2 million for
the same quarter of 2021 and $17.2
million for the fourth quarter of 2021.
Arty Straehla, Chief Executive Officer of Mammoth commented, "We
maintained positive top line momentum during the first quarter of
2022, which we believe is a trend that will continue into the
second quarter and back half of 2022. In our well completions and
drilling services segments, pricing and utilization rates continue
to increase and grow revenue in a favorable commodity environment
with elevated activity. Similarly, strong industry tailwinds
persist in the infrastructure space where we continue to compete
for new project work. During the first quarter of 2022, the revenue
contribution from our infrastructure services segment increased as
a percentage of our total revenue and we are seeing an increasing
number of opportunities in this segment. I am proud of our team's
commitment and hard work to mitigate the myriad of external
challenges in today's economic environment as we remain disciplined
with our spending to continue to improve Mammoth's cost structure
and enhance value for our stockholders."
Infrastructure Services
Mammoth's infrastructure services division contributed revenue
of $23.0 million, or approximately
37% of Mammoth's total revenue, for the first quarter of 2022, as
compared to $30.2 million for the
same quarter of 2021 and $19.7
million for the fourth quarter of 2021. The decrease in
revenue compared to the same quarter of 2021 is primarily due to a
decline in storm activity, resulting in lower storm restoration
revenue.
Well Completion Services
Mammoth's well completion services division contributed revenue
(inclusive of inter-segment revenue) of $23.9 million on 699 stages for the first quarter
of 2022, as compared to $23.0 million
on 445 stages for the same quarter of 2021 and $21.3 million on 891 stages for the fourth
quarter of 2021. On average, 1.6 of the Company's fleets were
active for the first quarter of 2022, compared to an average
utilization of 0.9 fleets during the same quarter of 2021 and 1.6
fleets during the fourth quarter of 2021. As of May 5, 2022, we were operating three of our six
pressure pumping fleets.
Natural Sand Proppant
Services
Mammoth's natural sand proppant services division contributed
revenue (inclusive of inter-segment revenue) of $9.2 million for the first quarter of 2022, as
compared to $8.7 million for the same
quarter of 2021 and $10.8 million for
the fourth quarter of 2021. In the first quarter of 2022, the
Company sold approximately 329,000 tons of sand at an average sales
price of $21.44 per ton, as compared
to sales of approximately 171,000 tons of sand at an average sales
price of $16.83 per ton during the
same quarter of 2021. In the fourth quarter of 2021, sales were
approximately 270,000 tons of sand at an average price of
$17.84 per ton.
Drilling Services
Mammoth's drilling services division contributed revenue
(inclusive of inter-segment revenue) of $2.9
million for the first quarter of 2022, as compared to
$0.9 million for the same quarter of
2021 and $1.0 million for the fourth
quarter of 2021. The increase is due to an increase in utilization
for Mammoth's directional drilling business.
Other Services
Mammoth's other services, including aviation, equipment rentals,
crude oil hauling, remote accommodations and equipment
manufacturing, contributed revenue (inclusive of inter-segment
revenue) of $4.7 million for the
first quarter of 2022, as compared to $4.7
million for the same quarter of 2021 and $4.9 million for the fourth quarter of 2021.
Selling, General and
Administrative Expenses
Selling, general and administrative ("SG&A") expenses were
$8.7 million for the first quarter of
2022, as compared to $18.0 million
for the same quarter of 2021 and $3.5
million for the fourth quarter of 2021.
Following is a breakout of SG&A expense (in thousands):
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
2022
|
|
2021
|
|
2021
|
Cash
expenses:
|
|
|
|
|
|
Compensation and
benefits
|
$
2,983
|
|
$
4,694
|
|
$
3,685
|
Professional
services(a)
|
3,637
|
|
581
|
|
(2,383)
|
Other(b)
|
1,906
|
|
2,342
|
|
1,994
|
Total cash SG&A expense
|
8,526
|
|
7,617
|
|
3,296
|
Non-cash
expenses:
|
|
|
|
|
|
Bad debt
provision(c)
|
(99)
|
|
10,125
|
|
12
|
Stock based
compensation
|
241
|
|
282
|
|
241
|
Total non-cash SG&A expense
|
142
|
|
10,407
|
|
253
|
Total SG&A
expense
|
$
8,668
|
|
$
18,024
|
|
$
3,549
|
|
|
a.
|
Certain legal expenses
totaling $2.8 million and $5.4 million were reclassified to Other,
net for the three months ended March 31, 2021 and December 31,
2021, respectively. The increase in professional fees is primarily
due to an increase in legal expenses for matters related to ongoing
operations.
|
b.
|
Includes travel-related
costs, information technology expenses, rent, utilities and other
general and administrative-related costs.
|
c.
|
The bad debt provision
for the three months ended March 31, 2021 includes $10.0 million
related to the Stingray Pressure Pumping and Muskie contracts with
Gulfport.
|
SG&A expenses, as a percentage of total revenue, were 14%
for the first quarter of 2022, as compared to 27% for the same
quarter of 2021 and 6% for the fourth quarter of 2021.
Liquidity
As of March 31, 2022, Mammoth had cash on hand of
$8.1 million, outstanding borrowings
under its revolving credit facility of $86.0
million and $11.5 million of
available borrowing capacity under its revolving credit facility,
after giving effect to $7.5 million
of outstanding letters of credit and the requirement to maintain a
$7.5 million reserve out of the
available borrowing capacity. As of March 31, 2022, Mammoth
had total liquidity of $19.6
million.
As of May 5, 2022, Mammoth had cash on hand of $6.9 million and outstanding borrowings under its
revolving credit facility of $84.7
million. As of May 5, 2022, the Company had
$10.3 million of available borrowing
capacity under its revolving credit facility, after giving effect
to $7.5 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,
|
|
2022
|
|
2021
|
|
2021
|
Infrastructure
services(a)
|
$
398
|
|
$
189
|
|
$
153
|
Well completion
services(b)
|
801
|
|
508
|
|
1,135
|
Natural sand proppant
services(c)
|
—
|
|
408
|
|
55
|
Drilling
services(d)
|
2
|
|
37
|
|
1
|
Other(e)
|
60
|
|
102
|
|
25
|
Eliminations
|
(79)
|
|
(96)
|
|
—
|
Total capital
expenditures
|
$
1,182
|
|
$
1,148
|
|
$
1,369
|
|
|
a.
|
Capital expenditures
primarily for truck, tooling and equipment purchases for the
periods presented.
|
b.
|
Capital expenditures
primarily for upgrades to our pressure pumping fleet for the
periods presented.
|
c.
|
Capital expenditures
primarily for maintenance for the periods presented.
|
d.
|
Capital expenditures
primarily for directional drilling equipment for the periods
presented.
|
e.
|
Capital expenditures
primarily for equipment for the Company's rental businesses for the
periods presented.
|
We anticipate that our capital expenditures for 2022 will be
approximately $12 million.
Conference Call
Information
Mammoth will host a conference call on Monday, May 9, 2022 at 5:00 p.m. Central time (6:00 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.
About Mammoth Energy Services,
Inc.
Mammoth is an integrated, growth-oriented energy services
company focused on the construction and repair of the electric grid
for private utilities, public investor-owned utilities and
co-operative utilities through its infrastructure services
businesses. The Company also provides products and services to
enable 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 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 current Russian/Ukrainian military conflict 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; 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; 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, including the adverse impact
of the recent settlement with MasTec Renewables Puerto Rico, LLC,
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 continue to comply
with, or if applicable, obtain a waiver of forecasted or actual
noncompliance with certain financial covenants and comply with
other terms and conditions under our recently amended revolving
credit facility; 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,
|
|
|
2022
|
|
2021
|
CURRENT
ASSETS
|
|
(in thousands)
|
Cash and cash equivalents
|
|
$
8,118
|
|
$
9,899
|
Short-term investment
|
|
1,763
|
|
1,762
|
Accounts receivable, net
|
|
411,931
|
|
407,550
|
Receivables from related parties, net
|
|
313
|
|
88
|
Inventories
|
|
10,358
|
|
8,366
|
Prepaid expenses
|
|
9,086
|
|
12,381
|
Other current assets
|
|
628
|
|
737
|
Total current assets
|
|
442,197
|
|
440,783
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
161,005
|
|
176,586
|
Sand
reserves
|
|
64,628
|
|
64,641
|
Operating lease
right-of-use assets
|
|
11,675
|
|
12,168
|
Intangible assets,
net
|
|
2,366
|
|
2,561
|
Goodwill
|
|
11,717
|
|
11,717
|
Deferred income tax
asset
|
|
5,180
|
|
8,094
|
Other non-current
assets
|
|
3,679
|
|
4,342
|
Total assets
|
|
$
702,447
|
|
$
720,892
|
LIABILITIES AND EQUITY
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Accounts payable
|
|
$
38,780
|
|
$
37,560
|
Accrued expenses and other current liabilities
|
|
55,750
|
|
62,516
|
Current operating lease liability
|
|
5,710
|
|
5,942
|
Current portion of long-term debt
|
|
1,486
|
|
1,468
|
Income taxes payable
|
|
42,950
|
|
42,748
|
Total current
liabilities
|
|
144,676
|
|
150,234
|
|
|
|
|
|
Long-term debt, net of
current portion
|
|
87,458
|
|
85,240
|
Deferred income tax
liabilities
|
|
1,431
|
|
865
|
Long-term operating
lease liability
|
|
5,731
|
|
5,918
|
Asset retirement
obligation
|
|
3,943
|
|
3,720
|
Other long-term
liabilities
|
|
10,364
|
|
11,693
|
Total liabilities
|
|
253,603
|
|
257,670
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Equity:
|
|
|
|
|
Common stock, $0.01 par value, 200,000,000 shares authorized,
47,184,065 and
46,684,065 issued and outstanding at
March 31, 2022 and December 31, 2021
|
|
472
|
|
467
|
Additional paid in capital
|
|
538,457
|
|
538,221
|
Accumulated deficit
|
|
(87,352)
|
|
(72,535)
|
Accumulated other comprehensive loss
|
|
(2,733)
|
|
(2,931)
|
Total equity
|
|
448,844
|
|
463,222
|
Total liabilities and
equity
|
|
$
702,447
|
|
$
720,892
|
MAMMOTH ENERGY
SERVICES, INC.
|
CONSOLIDATED STATEMENTS
OF COMPREHENSIVE (LOSS) INCOME
|
|
|
Three Months Ended
|
|
March 31,
|
|
December 31,
|
|
2022
|
|
2021
|
|
2021
|
|
(in thousands, except per share
amounts)
|
REVENUE
|
|
Services revenue
|
$
53,667
|
|
$
42,691
|
|
$
46,262
|
Services revenue - related parties
|
274
|
|
14,986
|
|
104
|
Product revenue
|
8,357
|
|
6,982
|
|
10,867
|
Product revenue - related parties
|
—
|
|
2,145
|
|
—
|
Total
revenue
|
62,298
|
|
66,804
|
|
57,233
|
|
|
|
|
|
|
COST AND
EXPENSES
|
|
|
|
|
|
Services cost of revenue (exclusive of depreciation,
depletion, amortization and accretion of
$15,355, $18,989 and $15,953, respectively, for
the three months ended March 31, 2022, March
31, 2021 and December 31, 2021)
|
46,567
|
|
42,062
|
|
41,572
|
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, 2022, March 31,
2021 and December 31, 2021)
|
135
|
|
109
|
|
134
|
Product cost of revenue (exclusive of depreciation,
depletion, amortization and accretion of
$1,792, $2,137 and $1,943, respectively, for
the three months ended March 31, 2022, March 31,
2021 and December 31, 2021)
|
7,778
|
|
5,909
|
|
4,581
|
Selling, general and administrative
|
8,668
|
|
17,831
|
|
3,549
|
Selling, general and administrative - related
parties
|
—
|
|
193
|
|
—
|
Depreciation, depletion, amortization and
accretion
|
17,167
|
|
21,146
|
|
17,916
|
Impairment of goodwill
|
—
|
|
—
|
|
891
|
Impairment of other long-lived assets
|
—
|
|
—
|
|
665
|
Total cost and
expenses
|
80,315
|
|
87,250
|
|
69,308
|
Operating
loss
|
(18,017)
|
|
(20,446)
|
|
(12,075)
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
Interest expense, net
|
(2,349)
|
|
(1,225)
|
|
(2,528)
|
Other income, net
|
9,237
|
|
7,123
|
|
4,813
|
Other expense, net - related parties
|
—
|
|
(515)
|
|
—
|
Total other
income
|
6,888
|
|
5,383
|
|
2,285
|
Loss before income
taxes
|
(11,129)
|
|
(15,063)
|
|
(9,790)
|
Provision (benefit) for
income taxes
|
3,688
|
|
(2,623)
|
|
3,507
|
Net loss
|
$
(14,817)
|
|
$
(12,440)
|
|
$
(13,297)
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
LOSS
|
|
|
|
|
|
Foreign currency translation adjustment, net of tax of $0,
($42) and $0, respectively, for the
three months ended March 31, 2022, March 31,
2021 and December 31, 2021)
|
198
|
|
168
|
|
16
|
Comprehensive
loss
|
$
(14,619)
|
|
$
(12,272)
|
|
$
(13,281)
|
|
|
|
|
|
|
Net loss per share
(basic)
|
$
(0.32)
|
|
$
(0.27)
|
|
$
(0.28)
|
Net loss per share
(diluted)
|
$
(0.32)
|
|
$
(0.27)
|
|
$
(0.28)
|
Weighted average number
of shares outstanding (basic)
|
46,845
|
|
45,932
|
|
46,683
|
Weighted average number
of shares outstanding (diluted)
|
46,845
|
|
45,932
|
|
46,683
|
MAMMOTH ENERGY
SERVICES, INC.
|
CONSOLIDATED STATEMENTS
OF CASH FLOWS
|
|
|
Three Months Ended
|
|
March 31,
|
|
2022
|
|
2021
|
|
(in thousands)
|
Cash flows from
operating activities:
|
|
|
|
Net
loss
|
$
(14,817)
|
|
$
(12,440)
|
Adjustments to reconcile net loss to cash (used in) provided
by operating activities:
|
|
|
|
Stock based
compensation
|
241
|
|
344
|
Depreciation, depletion,
accretion and amortization
|
17,167
|
|
21,146
|
Amortization of debt
origination costs
|
186
|
|
142
|
Bad debt (recoveries)
expense
|
(99)
|
|
10,125
|
Gain on disposal of property
and equipment
|
(593)
|
|
(615)
|
Deferred income
taxes
|
3,481
|
|
(5,061)
|
Other
|
535
|
|
558
|
Changes in assets and
liabilities:
|
|
|
|
Accounts receivable,
net
|
(3,898)
|
|
23,437
|
Receivables from
related parties
|
(225)
|
|
(14,611)
|
Inventories
|
(1,992)
|
|
664
|
Prepaid expenses and
other assets
|
3,404
|
|
3,105
|
Other current assets -
related parties
|
—
|
|
(2,228)
|
Accounts payable
|
1,041
|
|
(4,285)
|
Accrued expenses and
other liabilities
|
(7,013)
|
|
(8,516)
|
Income taxes
payable
|
201
|
|
2,469
|
Net cash (used in)
provided by operating activities
|
(2,381)
|
|
14,234
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Purchases of property and equipment
|
(1,182)
|
|
(1,148)
|
Proceeds from disposal of property and equipment
|
1,038
|
|
1,457
|
Net cash (used in)
provided by investing activities
|
(144)
|
|
309
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Borrowings on long-term debt
|
37,550
|
|
1,500
|
Repayments of long-term debt
|
(35,317)
|
|
(15,617)
|
Payments on sale-leaseback transaction
|
(868)
|
|
(330)
|
Principal payments on financing leases and equipment
financing notes
|
(629)
|
|
(577)
|
Net cash provided by
(used in) financing activities
|
736
|
|
(15,024)
|
Effect of foreign
exchange rate on cash
|
8
|
|
25
|
Net change in cash and
cash equivalents
|
(1,781)
|
|
(456)
|
Cash and cash
equivalents at beginning of period
|
9,899
|
|
14,822
|
Cash and cash
equivalents at end of period
|
$
8,118
|
|
$
14,366
|
|
|
|
|
Supplemental disclosure
of cash flow information:
|
|
|
|
Cash paid for interest
|
$
1,754
|
|
$
1,093
|
Cash paid for income taxes, net of refunds
received
|
$
6
|
|
$
(32)
|
Supplemental disclosure
of non-cash transactions:
|
|
|
|
Purchases of property and equipment included in accounts
payable
|
$
1,707
|
|
$
1,964
|
MAMMOTH ENERGY
SERVICES, INC.
|
SEGMENT INCOME
STATEMENTS
|
(in
thousands)
|
|
Three months ended
March 31, 2022
|
Infrastructure
|
Well
Completion
|
Sand
|
Drilling
|
All Other
|
Eliminations
|
Total
|
Revenue from external
customers
|
$
23,009
|
$
23,630
|
$
8,347
|
$
2,852
|
$
4,460
|
$
—
|
$
62,298
|
Intersegment
revenues
|
—
|
244
|
832
|
3
|
272
|
(1,351)
|
—
|
Total
revenue
|
23,009
|
23,874
|
9,179
|
2,855
|
4,732
|
(1,351)
|
62,298
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
18,887
|
21,839
|
7,788
|
2,372
|
3,594
|
—
|
54,480
|
Intersegment cost of
revenues
|
16
|
1,031
|
—
|
160
|
70
|
(1,277)
|
—
|
Total cost of
revenue
|
18,903
|
22,870
|
7,788
|
2,532
|
3,664
|
(1,277)
|
54,480
|
Selling, general and
administrative
|
4,645
|
2,039
|
828
|
292
|
864
|
—
|
8,668
|
Depreciation,
depletion, amortization and accretion
|
4,314
|
6,444
|
1,795
|
1,680
|
2,934
|
—
|
17,167
|
Operating
loss
|
(4,853)
|
(7,479)
|
(1,232)
|
(1,649)
|
(2,730)
|
(74)
|
(18,017)
|
Interest expense,
net
|
1,542
|
371
|
162
|
104
|
170
|
—
|
2,349
|
Other (income) expense,
net
|
(9,587)
|
(49)
|
(79)
|
—
|
478
|
—
|
(9,237)
|
Income (loss) before
income taxes
|
$
3,192
|
$
(7,801)
|
$
(1,315)
|
$
(1,753)
|
$
(3,378)
|
$
(74)
|
$
(11,129)
|
Three months ended
March 31, 2021
|
Infrastructure
|
Well
Completion
|
Sand
|
Drilling
|
All Other
|
Eliminations
|
Total
|
Revenue from external
customers
|
$
30,200
|
$
22,901
|
$
8,705
|
$
919
|
$
4,079
|
$
—
|
$
66,804
|
Intersegment
revenues
|
—
|
54
|
—
|
14
|
640
|
(708)
|
—
|
Total
revenue
|
30,200
|
22,955
|
8,705
|
933
|
4,719
|
(708)
|
66,804
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
27,377
|
9,003
|
5,862
|
1,604
|
4,234
|
—
|
48,080
|
Intersegment cost of
revenues
|
45
|
394
|
—
|
—
|
269
|
(708)
|
—
|
Total cost of
revenue
|
27,422
|
9,397
|
5,862
|
1,604
|
4,503
|
(708)
|
48,080
|
Selling, general and
administrative
|
3,739
|
10,612
|
2,049
|
422
|
1,202
|
—
|
18,024
|
Depreciation,
depletion, amortization and accretion
|
6,667
|
6,683
|
2,140
|
2,165
|
3,491
|
—
|
21,146
|
Operating
loss
|
(7,628)
|
(3,737)
|
(1,346)
|
(3,258)
|
(4,477)
|
—
|
(20,446)
|
Interest expense,
net
|
669
|
254
|
93
|
63
|
146
|
—
|
1,225
|
Other (income) expense,
net
|
(6,486)
|
439
|
(794)
|
(9)
|
242
|
—
|
(6,608)
|
Loss before income
taxes
|
$
(1,811)
|
$
(4,430)
|
$
(645)
|
$
(3,312)
|
$
(4,865)
|
$
—
|
$
(15,063)
|
Three months ended
December 31, 2021
|
Infrastructure
|
Well
Completion
|
Sand
|
Drilling
|
All Other
|
Eliminations
|
Total
|
Revenue from external
customers
|
$
19,714
|
$
21,251
|
$
10,849
|
$
963
|
$
4,456
|
$
—
|
$
57,233
|
Intersegment
revenues
|
—
|
25
|
—
|
69
|
414
|
(508)
|
—
|
Total
revenue
|
19,714
|
21,276
|
10,849
|
1,032
|
4,870
|
(508)
|
57,233
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
20,096
|
16,443
|
4,601
|
1,363
|
3,784
|
—
|
46,287
|
Intersegment cost of
revenues
|
31
|
321
|
—
|
—
|
156
|
(508)
|
—
|
Total cost of
revenue
|
20,127
|
16,764
|
4,601
|
1,363
|
3,940
|
(508)
|
46,287
|
Selling, general and
administrative
|
(1,017)
|
2,164
|
1,243
|
309
|
850
|
—
|
3,549
|
Depreciation,
depletion, amortization and accretion
|
4,380
|
6,709
|
1,946
|
1,812
|
3,069
|
—
|
17,916
|
Impairment of
goodwill
|
891
|
—
|
—
|
—
|
—
|
|
891
|
Impairment of other
long-lived assets
|
665
|
—
|
—
|
—
|
—
|
—
|
665
|
Operating
loss
|
(5,332)
|
(4,361)
|
3,059
|
(2,452)
|
(2,989)
|
—
|
(12,075)
|
Interest expense,
net
|
1,613
|
419
|
183
|
116
|
197
|
—
|
2,528
|
Other (income) expense,
net
|
(4,131)
|
(121)
|
18
|
23
|
(602)
|
—
|
(4,813)
|
(Loss) income before
income taxes
|
$
(2,814)
|
$
(4,659)
|
$
2,858
|
$
(2,591)
|
$
(2,584)
|
$
—
|
$
(9,790)
|
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, stock based compensation, interest expense, net, other
(income) expense, net (which is comprised of the (gain) or loss on
disposal of long-lived assets, 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
loss:
|
2022
|
|
2021
|
|
2021
|
Net loss
|
$
(14,817)
|
|
$
(12,440)
|
|
$
(13,297)
|
Depreciation,
depletion, amortization and accretion expense
|
17,167
|
|
21,146
|
|
17,916
|
Impairment of
goodwill
|
—
|
|
—
|
|
891
|
Impairment of other
long-lived assets
|
—
|
|
—
|
|
665
|
Stock based
compensation
|
241
|
|
344
|
|
242
|
Interest expense,
net
|
2,349
|
|
1,225
|
|
2,528
|
Other income,
net
|
(9,237)
|
|
(6,608)
|
|
(4,813)
|
Provision (benefit) for
income taxes
|
3,688
|
|
(2,623)
|
|
3,507
|
Interest on trade
accounts receivable
|
9,862
|
|
8,158
|
|
9,571
|
Adjusted
EBITDA
|
$
9,253
|
|
$
9,202
|
|
$
17,210
|
Infrastructure
Services
|
|
|
Three Months Ended
|
|
March 31,
|
|
December 31,
|
Reconciliation of Adjusted EBITDA to net income
(loss):
|
2022
|
|
2021
|
|
2021
|
Net income
(loss)
|
$
125
|
|
$
(4,240)
|
|
$
(5,992)
|
Depreciation and
amortization expense
|
4,314
|
|
6,667
|
|
4,380
|
Impairment of
goodwill
|
—
|
|
—
|
|
891
|
Impairment of other
long-lived assets
|
—
|
|
—
|
|
665
|
Stock based
compensation
|
98
|
|
138
|
|
100
|
Interest
expense
|
1,542
|
|
669
|
|
1,613
|
Other income,
net
|
(9,587)
|
|
(6,486)
|
|
(4,131)
|
Provision for income
taxes
|
3,067
|
|
2,429
|
|
3,175
|
Interest on trade
accounts receivable
|
9,862
|
|
8,673
|
|
9,571
|
Adjusted
EBITDA
|
$
9,421
|
|
$
7,850
|
|
$
10,272
|
Well Completion
Services
|
|
|
Three Months Ended
|
|
March 31,
|
|
December 31,
|
Reconciliation of Adjusted EBITDA to net
loss:
|
2022
|
|
2021
|
|
2021
|
Net loss
|
$
(7,801)
|
|
$
(4,430)
|
|
$
(4,659)
|
Depreciation and
amortization expense
|
6,444
|
|
6,683
|
|
6,709
|
Stock based
compensation
|
87
|
|
83
|
|
80
|
Interest
expense
|
371
|
|
254
|
|
419
|
Other (income) expense,
net
|
(49)
|
|
439
|
|
(121)
|
Interest on trade
accounts receivable
|
—
|
|
(514)
|
|
—
|
Adjusted
EBITDA
|
$
(948)
|
|
$
2,515
|
|
$
2,428
|
Natural
Sand Proppant Services
|
|
|
Three Months Ended
|
|
March 31,
|
|
December 31,
|
Reconciliation of Adjusted EBITDA to net (loss)
income:
|
2022
|
|
2021
|
|
2021
|
Net (loss)
income
|
$
(1,315)
|
|
$
(645)
|
|
$
2,858
|
Depreciation,
depletion, amortization and accretion expense
|
1,795
|
|
2,140
|
|
1,946
|
Stock based
compensation
|
34
|
|
64
|
|
39
|
Interest
expense
|
162
|
|
93
|
|
183
|
Other (income) expense,
net
|
(79)
|
|
(794)
|
|
18
|
Interest on trade
accounts receivable
|
—
|
|
(1)
|
|
—
|
Adjusted
EBITDA
|
$
597
|
|
$
857
|
|
$
5,044
|
Drilling
Services
|
|
|
Three Months Ended
|
|
March 31,
|
|
December 31,
|
Reconciliation of Adjusted EBITDA to net
loss:
|
2022
|
|
2021
|
|
2021
|
Net loss
|
$
(1,753)
|
|
$
(3,312)
|
|
$
(2,590)
|
Depreciation
expense
|
1,680
|
|
2,165
|
|
1,812
|
Stock based
compensation
|
5
|
|
38
|
|
5
|
Interest
expense
|
104
|
|
63
|
|
116
|
Other (income) expense,
net
|
—
|
|
(9)
|
|
23
|
Adjusted
EBITDA
|
$
36
|
|
$
(1,055)
|
|
$
(634)
|
Other
Services(a)
|
|
|
Three Months Ended
|
|
March 31,
|
|
December 31,
|
Reconciliation of Adjusted EBITDA to net (loss)
income:
|
2022
|
|
2021
|
|
2021
|
Net (loss)
income
|
$
(3,999)
|
|
$
187
|
|
$
(2,915)
|
Depreciation,
amortization and accretion expense
|
2,934
|
|
3,491
|
|
3,069
|
Stock based
compensation
|
17
|
|
21
|
|
18
|
Interest expense,
net
|
170
|
|
146
|
|
197
|
Other expense (income),
net
|
478
|
|
242
|
|
(602)
|
Provision (benefit) for
income taxes
|
621
|
|
(5,052)
|
|
332
|
Adjusted
EBITDA
|
$
221
|
|
$
(965)
|
|
$
99
|
|
|
a.
|
Includes results for
Mammoth's aviation, equipment rentals, crude oil hauling, remote
accommodations and equipment manufacturing and corporate related
activities. The Company's corporate related activities do not
generate revenue.
|
Adjusted Net Loss and Adjusted
Loss per Share
Adjusted net loss and adjusted basic and diluted loss per share
are supplemental non-GAAP financial measures that are used by
management to evaluate the Company's operating and financial
performance. Mammoth defines adjusted net loss as net loss before
impairment of goodwill and impairment of other long-lived assets.
Mammoth defines adjusted basic and diluted loss per share as loss
per share before the effects of impairment of goodwill and
impairment of other long-lived assets. 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 and adjusted loss per share should not
be considered in isolation or as a substitute for net loss and 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 loss
and adjusted loss per share to the GAAP financial measures of net
loss and loss per share for the periods specified.
|
Three Months Ended
|
|
March 31,
|
|
December 31,
|
|
2022
|
|
2021
|
|
2021
|
|
(in thousands, except per share
amounts)
|
Net loss, as
reported
|
$
(14,817)
|
|
$
(12,440)
|
|
$
(13,297)
|
Impairment of goodwill
|
—
|
|
—
|
|
891
|
Impairment of other long-lived assets
|
—
|
|
—
|
|
665
|
Adjusted net
loss
|
$
(14,817)
|
|
$
(12,440)
|
|
$
(11,741)
|
|
|
|
|
|
|
Basic loss per share,
as reported
|
$
(0.32)
|
|
$
(0.27)
|
|
$
(0.28)
|
Impairment of goodwill
|
—
|
|
—
|
|
0.02
|
Impairment of other long-lived assets
|
—
|
|
—
|
|
0.01
|
Adjusted basic loss per
share
|
$
(0.32)
|
|
$
(0.27)
|
|
$
(0.25)
|
|
|
|
|
|
|
Diluted loss per share,
as reported
|
$
(0.32)
|
|
$
(0.27)
|
|
$
(0.28)
|
Impairment of goodwill
|
—
|
|
—
|
|
0.02
|
Impairment of other long-lived assets
|
—
|
|
—
|
|
0.01
|
Adjusted diluted loss
per share
|
$
(0.32)
|
|
$
(0.27)
|
|
$
(0.25)
|
View original
content:https://www.prnewswire.com/news-releases/mammoth-energy-services-inc-announces-first-quarter-2022-operational-and-financial-results-301542999.html
SOURCE Mammoth Energy Services, Inc.