WILLOW
PARK, Texas, March 21,
2023 /PRNewswire/ -- ProFrac Holding Corp.
(NASDAQ: ACDC) ("ProFrac", or the "Company") today announced
financial and operational results for its fourth quarter and full
year ended December 31, 2022.
Full Year 2022 Results
- Total revenue of $2.4 billion, up
216% year-over-year
- Net income totaled $342.7 million
compared to a net loss of ($43.5)
million in the previous year
- Adjusted EBITDA(1) excluding Flotek increased
approximately 520% year-over-year to $835.5
million
- Adjusted EBITDA per active fleet(2) excluding Flotek
was $27.9 million on 29.9 average
active fleets during the year
- Full year results include the consolidation of Flotek results
which contributed $37.1 million in
revenue excluding intercompany eliminations, and ($24.3) million in Adjusted EBITDA
Fourth Quarter 2022 Results and Recent Highlights
- Total revenue grew approximately 14% sequentially to
$794.1 million over 2022 third
quarter revenue
- Net income declined approximately 17% sequentially to
$116 million
- Adjusted EBITDA(1) excluding Flotek increased
approximately 2% sequentially to $269.2
million
- Annualized Adjusted EBITDA per fleet(2) excluding
Flotek was $29.9 million on 36
average active fleets during the quarter
- Fourth quarter results include the consolidation of Flotek
results which contributed $15.9
million in revenue excluding intercompany eliminations, and
($5.8) million in Adjusted
EBITDA
- In the fourth quarter of 2022, the Company successfully closed
on its acquisitions of US Well Services, the Eagle Ford sand mining
operations of Monarch Silica, and Rev Energy Holdings
- In the first quarter of 2023, the Company upsized the term loan
credit facility by $320 million and
closed on its acquisitions of Producers Service Holdings and
Performance Proppants
Matt Wilks, ProFrac's Executive
Chairman, stated, "I am extremely pleased with our company's
commitment and hard work that continues to generate improved
operational efficiencies and financial growth as we scale the
business. We believe our vertically integrated business model
positions ProFrac to reduce market volatility and deliver more
consistent profitability throughout the cycle."
Ladd Wilks, ProFrac's Chief
Executive Officer, added, "We are incredibly proud of our team's
performance in the fourth quarter growing revenue by 14%
sequentially despite an early round of cold weather that impacted
operations. We continue to benefit from our vertically integrated
services model. By controlling critical links in our supply
chain and maintaining an unwavering focus on safety, efficiency and
profitability, we believe we are well positioned to generate
industry leading returns."
Full Year 2022 Financial Results
For the year ended December 31,
2022, consolidated revenue grew 216% from the prior year and
totaled $2.4 billion. The
increase was primarily attributable to an increase in customer
activity for our stimulation services, improved pricing, and an
increase in active fleets associated with the Company's
acquisitions of FTSI and USWS during the year. The Company
also benefited from increased proppant sales due to more active
mines during the year.
For the year ended December 31,
2022, the Company's average active fleet count was 29.9
fleets compared to 14 fleets in 2021.
For the year ended December 31,
2022, selling, general, and administrative costs were
$243.1 million. Excluding
stock-based compensation, selling, general, and administrative
costs were $175.7 million, of which
$17.5 million related to Flotek.
For the year ended December 31,
2022, net income totaled $342.7
million, or $2.06 per Class A
share. This compares to a net loss of ($43.5) million the previous year.
Excluding the operating results attributable to Flotek, net income
totaled $372.1 million.
Adjusted EBITDA increased 502% to $811.2
million, or $27.1 million per
fleet, for the year ended December 31,
2022. Excluding the operating results attributable to
Flotek, Adjusted EBITDA totaled $835.5
million, or $27.9 million per
average active fleet.
Operating cash flow grew 846% to $415.2
million for the year ended December
31, 2022. This includes approximately $271 million in working capital build during the
year from increased activity and pricing levels.
Fourth Quarter 2022 Financial Results
For the fourth quarter of 2022, consolidated revenues totaled
$794.1 million, up roughly 14%
sequentially. The increase was driven by a higher active
fleet count and material sales, slightly offset by lower average
pricing on the fleets acquired from USWS and lower efficiencies
during the quarter, some of which were weather related.
The Company's average active fleet count for the fourth quarter
was 36 fleets compared to 31 fleets in the prior quarter.
Selling, general, and administrative costs were $74.1 million. Excluding stock-based
compensation, selling, general, and administrative costs were
$60.0 million, of which $4.8 million related to Flotek. This
represents an increase of 16% sequentially, primarily attributable
to the expansion of our fleet count and the buildout of our
proppant segment.
Net income for the fourth quarter declined 17% to $116 million, or $0.82 per Class A share. Excluding the operating
results attributable to Flotek, net income totaled $123.8 million.
In the fourth quarter, Adjusted EBITDA increased 4% from the
prior quarter and totaled $263.4
million, or $29.3 million per
fleet on an annualized basis. Excluding the operating results
attributable to Flotek, Adjusted EBITDA totaled $269.2 million, or $29.9
million per fleet on an annualized basis.
Operating cash flow was $158.6
million in the fourth quarter, an 8% decrease from the
previous quarter. This includes a working capital build of
$57.7 million.
Outlook
Lower commodity prices have impacted our customers' business
over the last several months. Pricing levels have remained
steady through February, but the Company will continue to assess
the market dynamics. In response to the sharp reduction in
gas prices, the Company has seen a less efficient calendar develop
over the course of the first quarter of 2023. The less
efficient calendar combined with the seasonal winter weather
impacts is expected to slightly reduce the Company's efficiencies
in the first quarter of 2023 compared to the fourth quarter of
2022.
The startup of operations at the Lamesa mine along with the acquisition of
Monarch Silica, both in December, should allow the Company to
operate approximately five mines during the first quarter of
2023. This should serve to increase the number of fully
integrated fleets and materials sales. The acquisition of
Performance Proppants in late February will result in the Company
exiting the quarter with a total of eight operating mines.
The Company expects to enhance profit per fleet as it further
integrates materials into its operating fleets, however Adjusted
EBITDA per fleet will also be impacted by inefficiencies and fleet
pricing trends in the market.
Business Segment Information
The Stimulation Services segment generated
revenues of $767.4 million in the
fourth quarter of 2022, which resulted in $252.1 million of Adjusted EBITDA.
The Proppant Production segment generated revenues
of $35.4 million in the fourth
quarter of 2022, which resulted in $20.2
million of Adjusted EBITDA. Approximately 64% of the
Proppant Production segment's revenue was intercompany.
The Manufacturing segment generated revenues of
$51.1 million in the fourth quarter
of 2022, which resulted in ($3.1)
million of Adjusted EBITDA. Approximately 95% of the
Manufacturing segment's revenue was intercompany.
Our Other Business Activities generated revenues
of $49.6 million in the fourth
quarter of 2022, which resulted in $(5.8)
million of Adjusted EBITDA. Approximately 68% of the Other
Business Activities' revenue was intercompany. The Other
Business Activities solely relate to the results of Flotek.
Capital Expenditures and Capital Allocation
Capital expenditures were $116.7
million for the fourth quarter and $356.2 for the year ended December 31, 2022, excluding acquisition related
expenditures.
For 2023, the Company expects capital expenditures to be in line
with 2022. The Company has budgeted approximately 15% of this
amount to complete the construction of four electric-powered
fleets. The Company also expects to allocate roughly 30% of
its 2023 capital expenditure budget to complete engine upgrades and
other growth initiatives, as well as another 15% for various
initiatives in its proppant production and manufacturing segments.
The remainder of the 2023 capital expenditure budget will be used
to fund maintenance capital expenditures, estimated to be
$3.0 million to $3.5 million per fleet per year.
Balance Sheet and Liquidity
Total gross debt outstanding as of December 31, 2022 was $959.4 million, $18.0
million of which was attributable to Flotek. Gross debt
outstanding excluding amounts attributable to Flotek was
$941.4 million, compared to
$549.4 million as of September 30, 2022.
Total cash and cash equivalents as of December 31, 2022, was $35.1 million, $12.3
million of which was attributable to Flotek. Cash and cash
equivalents excluding amounts attributable to Flotek was
$22.8 million, compared to
$56.2 million as of September 30, 2022.
As of December 31, 2022, and
excluding amounts attributable to Flotek, the Company had
$212.3 million of liquidity,
including $22.8 million in cash and
cash equivalents and $189.5 million
of net availability under its asset-based credit facility.
Subsequent to year end, the Company closed on its acquisition of
Performance Proppants for $475
million. To finance the cash portion of this
transaction, which amounted to $469
million, the Company upsized its term loan credit facility
by $320 million and increased the
aggregate maximum revolver amount on the asset-based credit
facility by $120 million. The
additional funds from the term loan credit facility, combined with
a $298 million draw on the
asset-based credit facility and cash from operations were utilized
to close the transaction. The Company currently has
total availability under the asset-based credit facility of
$79 million, including letters of
credit.
Footnotes
(1) Adjusted EBITDA is a financial measure not
presented in accordance with generally accepted accounting
principles ("GAAP") (a "Non-GAAP Financial Measure"). Please
see "Non-GAAP Financial Measures" at the end of this news
release.
(2) Adjusted EBITDA per fleet is a Non-GAAP Financial
Measure. Please see "Non-GAAP Financial Measures" at the end
of this news release.
Conference Call
ProFrac has scheduled a conference call on Tuesday, March 21, 2023 at 11:30 a.m. Eastern time / 10:30 a.m. Central time. Please dial
412-902-0030 and ask for the ProFrac Holding Corp. call at least 10
minutes prior to the start time of the call, or listen to the call
live over the Internet by logging on to the website at the address
https://ir.pfholdingscorp.com/news-events/ir-calendar. A
telephonic replay of the conference call will be available through
March 28, 2023 and may be accessed by
calling 201-612-7415 using passcode 13735078#. A webcast
archive will also be available at the link above shortly after the
call and will be accessible for approximately 90 days.
About ProFrac Holding Corp.
ProFrac Holding Corp. is a technology-focused, vertically
integrated energy services company providing well stimulation
services, proppants production and other complementary products and
services to oil and gas companies engaged in the exploration and
production ("E&P") of unconventional oil and natural gas
resources throughout the United
States. Founded in 2016, ProFrac was built to be the go-to
service provider for E&P companies' most demanding hydraulic
fracturing needs. ProFrac is focused on employing new technologies
to significantly reduce "greenhouse gas" emissions and increase
efficiency in what has historically been an emissions-intensive
component of the unconventional E&P development process. For
more information, please visit the ProFrac's website at
www.pfholdingscorp.com.
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements in this press release may be considered
"forward-looking statements" within the meaning of the "safe
harbor" provisions of the Private Securities Litigation Reform Act
of 1995. In some cases, the reader can identify forward-looking
statements by words such as "may," "should," "expect," "intend,"
"will," "estimate," "anticipate," "believe," "predict," or similar
words. Forward-looking statements relate to future events or the
Company's future financial or operating performance. These
forward-looking statements include, among other things, statements
regarding: the Company's strategies and plans for growth; the
Company's positioning, resources, capabilities, and expectations
for future performance; market and industry expectations; the
anticipated benefits of the Company's acquisitions of U.S. Well
Services, the Eagle Ford Sand mining operations of Monarch Silica,
Rev Energy Holdings, Producers Services Holdings and Performance
Proppants; the Company's estimates with respect to the
profitability and utilization of its electric, conventional and
dual fleets; the Company's currently expected guidance regarding
its first quarter 2023 results of operations; the Company's
currently expected guidance regarding its full year 2022 capital
expenditures and capital allocation; statements regarding the
availability of funds under the Company's credit facilities; the
Company's anticipated timing for operationalizing its new electric
fleets and its sand mines; the amount of capital available to the
Company in future periods; any financial or other information based
upon or otherwise incorporating judgments or estimates relating to
future performance, events or expectations; any estimates and
forecasts of financial and other performance metrics; and the
Company's outlook and financial and other guidance. Such
forward-looking statements are based upon assumptions made by the
Company as of the date hereof and are subject to risks,
uncertainties, and other factors that could cause actual results to
differ materially from those expressed or implied by such
forward-looking statements. Factors that may cause actual results
to differ materially from current expectations include, but are not
limited to: the ability to achieve the anticipated benefits of the
acquisitions of U.S. Well Services, the Eagle Ford sand mining
operations of Monarch Silica, Rev Energy Holdings, Producers
Services Holdings and Performance Proppants, including risks
relating to integrating acquired assets and personnel; the failure
to operationalize the Company's new fleets and sand mines in a
timely manner or at all; the Company's ability to deploy capital in
a manner that furthers the Company's growth strategy, as well as
the Company's general ability to execute its business plans;
industry conditions, including fluctuations in supply, demand and
prices for the Company's products and services; global and regional
economic and financial conditions; the effectiveness of the
Company's risk management strategies; the transition to becoming a
public company; and other risks and uncertainties set forth in the
sections entitled "Risk Factors" and "Cautionary Note Regarding
Forward-Looking Statements" in the Company's filings with the
Securities and Exchange Commission ("SEC"), which are available on
the SEC's website at www.sec.gov.
Forward-looking statements are also subject to the risks and
other issues described below under "Non-GAAP Financial Measures,"
which could cause actual results to differ materially from current
expectations included in the Company's forward-looking statements
included in this press release. Nothing in this press release
should be regarded as a representation by any person that the
forward-looking statements set forth herein will be achieved or
that any of the contemplated results of such forward looking
statements will be achieved, including without limitation any
expectations about the Company's operational and financial
performance or achievements through and including 2023. There may
be additional risks about which the Company is presently unaware or
that the Company currently believes are immaterial that could also
cause actual results to differ from those contained in the
forward-looking statements. The reader should not place undue
reliance on forward-looking statements, which speak only as of the
date they are made. The Company anticipates that subsequent events
and developments will cause its assessments to change. However,
while the Company may elect to update these forward-looking
statements at some point in the future, it expressly disclaims any
duty to update these forward-looking statements, except as
otherwise required by law.
Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDA per fleet are non-GAAP
financial measures and should not be considered as substitutes for
net income (loss) or any other performance measure derived in
accordance with GAAP or as an alternative to net cash provided by
operating activities as a measure of our profitability or
liquidity. Adjusted EBITDA and Adjusted EBITDA per fleet are
supplemental measures utilized by our management and other users of
our financial statements such as investors, commercial banks,
research analysts and others, to assess our financial performance
because they allow us to compare our operating performance on a
consistent basis across periods by removing the effects of our
capital structure (such as varying levels of interest expense),
asset base (such as depreciation and amortization) and items
outside the control of our management team (such as income tax
rates).
We view Adjusted EBITDA and Adjusted EBITDA per fleet as
important indicators of performance. We define Adjusted EBITDA as
our net income (loss), before (i) interest expense, net, (ii)
income tax provision, (iii) depreciation, depletion and
amortization, (iv) loss on disposal of assets, (v) stock-based
compensation, and (vi) other unusual or non-recurring charges, such
as costs and stock compensation expense related to our initial
public offering, non-recurring supply commitment charges, certain
credit losses, loss on extinguishment of debt and gain on
investment. We define Adjusted EBITDA per fleet for a particular
period as Adjusted EBITDA calculated as a daily average of active
fleets during period.
We believe that our presentation of Adjusted EBITDA and Adjusted
EBITDA per fleet will provide useful information to investors in
assessing our financial condition and results of operations. In
particular, we believe Adjusted EBITDA per fleet allows investors
to compare the performance of our fleets across comparable periods
and against the fleets of our competitors who may have different
capital structures, which may make a fleet-for-fleet comparison
more difficult. Net income (loss) is the GAAP measure most directly
comparable to Adjusted EBITDA, and net income (loss) per fleet is
the GAAP measure most directly comparable to Adjusted EBITDA per
fleet. Adjusted EBITDA should not be considered as an alternative
to net income (loss), and Adjusted EBITDA per fleet should not be
considered as an alternative to net income (loss) per fleet.
Adjusted EBITDA and Adjusted EBITDA per fleet have important
limitations as analytical tools because they exclude some but not
all items that affect the most directly comparable GAAP financial
measure. Because Adjusted EBITDA and Adjusted EBITDA per fleet may
be defined differently by other companies in our industry, our
definition of these non-GAAP financial measures may not be
comparable to similarly titled measures of other companies, thereby
diminishing their utility.
The presentation of non-GAAP financial measures is not intended
to be a substitute for, and should not be considered in isolation
from, the financial measures reported in accordance with GAAP. The
following tables present a reconciliation of the non-GAAP financial
measures of Adjusted EBITDA and Adjusted EBITDA per fleet to the
most directly comparable GAAP financial measure for the periods
indicated.
-Tables to Follow-
ProFrac Holding Corp.
(NasdaqGS: ACDC)
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Consolidated Statements
of Operations
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Three Months
Ended
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Twelve Months
Ended
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Dec.
31
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Sep.
30
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Dec.
31
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Sep.
30
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Dec.
31
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|
Dec.
31
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(In
millions)
|
2022
|
|
2022(1)
|
|
2021
|
|
2021
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2022(1)
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2021
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Revenues
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$
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794.1
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$
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696.7
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$
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248.0
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$
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195.9
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$
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2,425.6
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$
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768.4
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Operating costs and
expenses:
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Cost of revenues,
exclusive of depreciation, depletion and amortization
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471.0
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392.0
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180.9
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144.2
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1,438.7
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570.1
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Selling, general, and
administrative
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74.1
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64.5
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19.0
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17.2
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243.1
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64.2
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Depreciation, depletion
and amortization
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89.2
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69.1
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35.1
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35.2
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267.3
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140.7
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Acquisition related
expenses
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25.9
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5.8
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-
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-
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48.8
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-
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Other operating
(income) expenses, net
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8.7
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0.6
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1.1
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6.3
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15.3
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11.4
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Total operating costs
and expenses
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668.9
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532.0
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236.1
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202.9
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2,013.2
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786.4
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Operating income
(loss)
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125.2
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164.7
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11.9
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(7.0)
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412.4
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(18.0)
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Other (expense)
income:
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Interest expense,
net
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(20.5)
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(16.3)
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(6.7)
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(6.9)
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(59.5)
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(25.8)
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Loss on extinguishment
of debt
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(0.3)
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(0.2)
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(0.5)
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-
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(17.6)
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(0.5)
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Other (expense) income,
net
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8.3
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(1.0)
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0.4
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-
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16.5
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0.6
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Income (loss) before
income tax provision
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112.7
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147.2
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5.1
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(13.9)
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351.8
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(43.7)
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Income tax (provision)
benefit
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3.3
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(7.9)
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-
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(0.2)
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(9.1)
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0.2
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Net income
(loss)
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$
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116.0
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$
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139.3
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$
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5.1
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$
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(14.1)
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$
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342.7
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$
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(43.5)
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Less: net (income) loss
attributable to ProFrac Predecessor
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-
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-
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(6.1)
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14.0
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(73.6)
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42.4
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Less: net loss
attributable to noncontrolling interests
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8.3
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11.8
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1.0
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0.1
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28.4
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1.1
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Less: net income
attributable to redeemable noncontrolling interests
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(83.4)
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(107.1)
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-
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-
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(206.0)
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-
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Net income attributable
to ProFrac Holding Corp.
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$
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40.9
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$
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44.0
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$
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-
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$
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-
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$
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91.5
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$
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-
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(1)
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During the fourth
quarter of 2022, the Company identified and corrected immaterial
errors related to the recognition and classification of certain
repairs and maintenance expenses in the first three quarters of
2022.
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ProFrac Holding Corp.
(NasdaqGS: ACDC)
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Consolidated Balance
Sheet
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Dec.
31
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Dec.
31
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(In
millions)
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2022
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2021
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ASSETS
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Current
assets:
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|
|
Cash and cash
equivalents
|
|
$
|
35.1
|
|
$
|
5.4
|
|
Accounts receivable,
net
|
|
|
535.5
|
|
|
161.6
|
|
Accounts
receivable—related party
|
|
|
2.1
|
|
|
4.5
|
|
Inventories
|
|
|
249.5
|
|
|
74.0
|
|
Prepaid expenses and
other current assets
|
|
|
43.2
|
|
|
6.2
|
|
Total current
assets
|
|
|
865.4
|
|
|
251.7
|
|
|
|
|
|
|
|
|
|
Property, plant, and
equipment, net
|
|
|
1,396.4
|
|
|
363.7
|
|
Operating lease
right-of-use assets
|
|
|
112.9
|
|
|
-
|
|
Goodwill
|
|
|
240.5
|
|
|
-
|
|
Intangible assets,
net
|
|
|
203.1
|
|
|
27.8
|
|
Investments
|
|
|
58.6
|
|
|
4.2
|
|
Deferred tax
assets
|
|
|
0.4
|
|
|
-
|
|
Other assets
|
|
|
56.3
|
|
|
17.2
|
|
Total assets
|
|
|
2,933.6
|
|
|
664.6
|
|
|
|
|
|
|
|
|
|
LIABILITIES,
REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS' AND
MEMBERS' (DEFICIT) EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
339.4
|
|
|
136.7
|
|
Accounts
payable—related party
|
|
|
24.0
|
|
|
21.3
|
|
Accrued
expenses
|
|
|
115.4
|
|
|
22.5
|
|
Current portion of
long-term debt
|
|
|
127.6
|
|
|
31.8
|
|
Current portion of
operating lease liabilities
|
|
|
36.0
|
|
|
-
|
|
Other current
liabilities
|
|
|
25.7
|
|
|
34.4
|
|
Total current
liabilities
|
|
|
668.1
|
|
|
246.7
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
735.0
|
|
|
235.1
|
|
Long-term debt—related
party
|
|
|
62.8
|
|
|
34.7
|
|
Operating lease
liabilities
|
|
|
81.0
|
|
|
-
|
|
Other
liabilities
|
|
|
36.0
|
|
|
-
|
|
Total
liabilities
|
|
|
1,582.9
|
|
|
516.5
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
|
|
2,462.9
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Members'
equity
|
|
|
-
|
|
|
147.0
|
|
Preferred
stock
|
|
|
-
|
|
|
-
|
|
Class A Common
Stock
|
|
|
0.5
|
|
|
-
|
|
Class B Common
Stock
|
|
|
1.0
|
|
|
-
|
|
Additional paid-in
capital
|
|
|
-
|
|
|
-
|
|
Accumulated
deficit
|
|
|
(1,185.9)
|
|
|
-
|
|
Accumulated other
comprehensive income
|
|
|
0.1
|
|
|
0.1
|
|
Total stockholders' and
members' (deficit) equity attributable to ProFrac Holding
Corp.
|
|
|
(1,184.3)
|
|
|
147.1
|
|
Noncontrolling
interests
|
|
|
72.1
|
|
|
1.0
|
|
Total stockholders' and
members' (deficit) equity
|
|
|
(1,112.2)
|
|
|
148.1
|
|
Total liabilities,
redeemable noncontrolling interest, and stockholders' and members'
(deficit) equity
|
|
$
|
2,933.6
|
|
$
|
664.6
|
ProFrac Holding Corp.
(NasdaqGS: ACDC)
|
Consolidated Statements
of Cash Flow
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
Dec.
31
|
|
Sep.
30
|
|
Dec.
31
|
|
Dec.
31
|
|
(In
millions)
|
2022
|
|
2022(1)
|
|
2022(1)
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
116.0
|
|
$
|
139.3
|
|
$
|
342.7
|
|
$
|
(43.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net income (loss) to cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion
and amortization
|
|
89.2
|
|
|
69.1
|
|
|
267.3
|
|
|
140.7
|
|
Stock-based
compensation
|
|
14.1
|
|
|
12.9
|
|
|
67.4
|
|
|
-
|
|
Loss on disposal of
assets, net
|
|
(0.5)
|
|
|
0.6
|
|
|
2.1
|
|
|
9.8
|
|
Non-cash loss on
extinguishment of debt
|
|
0.2
|
|
|
0.3
|
|
|
10.7
|
|
|
0.5
|
|
Amortization of debt
issuance costs
|
|
2.0
|
|
|
2.0
|
|
|
6.7
|
|
|
2.2
|
|
Bad debt expense, net
of recoveries
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Provision for inventory
obsolescence
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Deferred tax
expense
|
|
1.3
|
|
|
1.4
|
|
|
3.7
|
|
|
-
|
|
Unrealized gain on
investments, net
|
|
(7.9)
|
|
|
-
|
|
|
(16.4)
|
|
|
-
|
|
Other non-cash items,
net
|
|
1.9
|
|
|
-
|
|
|
1.9
|
|
|
(1.3)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
17.2
|
|
|
(46.1)
|
|
|
(203.3)
|
|
|
(89.6)
|
|
Inventories
|
|
(8.3)
|
|
|
(39.4)
|
|
|
(105.1)
|
|
|
(16.1)
|
|
Prepaid expenses and
other assets
|
|
(7.8)
|
|
|
(11.5)
|
|
|
(26.4)
|
|
|
3.8
|
|
Accounts
payable
|
|
36.6
|
|
|
19.1
|
|
|
42.9
|
|
|
31.6
|
|
Accrued
expenses
|
|
(80.5)
|
|
|
28.3
|
|
|
30.1
|
|
|
6.1
|
|
Deferred revenues and
other liabilities
|
|
(14.9)
|
|
|
(3.9)
|
|
|
(9.1)
|
|
|
(0.3)
|
|
Net cash provided by
operating activities
|
|
158.6
|
|
|
172.1
|
|
|
415.2
|
|
|
43.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in property,
plant & equipment
|
|
(116.7)
|
|
|
(123.4)
|
|
|
(356.2)
|
|
|
(87.4)
|
|
Proceeds from sale of
assets
|
|
1.7
|
|
|
0.5
|
|
|
48.3
|
|
|
17.5
|
|
Acquisitions, net of
cash acquired
|
|
(285.8)
|
|
|
(97.7)
|
|
|
(640.7)
|
|
|
(4.3)
|
|
Investment in preferred
shares of BPC
|
|
-
|
|
|
-
|
|
|
(47.2)
|
|
|
(4.2)
|
|
Initial investment in
Flotek
|
|
-
|
|
|
-
|
|
|
(10.0)
|
|
|
-
|
|
Other
investments
|
|
2.0
|
|
|
(20.9)
|
|
|
(22.8)
|
|
|
-
|
|
Net cash used in
investing activities
|
|
(398.8)
|
|
|
(241.5)
|
|
|
(1,028.6)
|
|
|
(78.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance
of long-term debt
|
|
0.1
|
|
|
231.3
|
|
|
818.9
|
|
|
160.3
|
|
Repayments of long-term
debt
|
|
(15.9)
|
|
|
(18.0)
|
|
|
(531.7)
|
|
|
(146.9)
|
|
Borrowings from
revolving credit agreements
|
|
314.2
|
|
|
56.5
|
|
|
567.9
|
|
|
63.5
|
|
Repayments to revolving
credit agreements
|
|
(80.0)
|
|
|
(199.8)
|
|
|
(402.7)
|
|
|
(35.5)
|
|
Payment of debt
issuance costs
|
|
(5.3)
|
|
|
(9.7)
|
|
|
(38.6)
|
|
|
(2.0)
|
|
Member
contribution
|
|
-
|
|
|
-
|
|
|
5.0
|
|
|
-
|
|
Proceeds from issuance
of common stock
|
|
-
|
|
|
-
|
|
|
329.1
|
|
|
-
|
|
Payment of THRC related
equity
|
|
-
|
|
|
-
|
|
|
(72.9)
|
|
|
-
|
|
Payment of common stock
issuance costs
|
|
-
|
|
|
-
|
|
|
(27.4)
|
|
|
-
|
|
Other
|
|
(1.7)
|
|
|
-
|
|
|
(1.7)
|
|
|
(2.5)
|
|
Net cash provided by
financing activities
|
|
211.4
|
|
|
60.3
|
|
|
645.9
|
|
|
36.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in
cash, cash equivalents, and restricted cash
|
$
|
(28.8)
|
|
$
|
(9.1)
|
|
$
|
32.5
|
|
$
|
2.4
|
|
Cash, cash
equivalents, and restricted cash beginning of period
|
|
66.7
|
|
|
75.8
|
|
|
5.4
|
|
|
3.0
|
|
Cash, cash
equivalents, and restricted cash end of period
|
$
|
37.9
|
|
$
|
66.7
|
|
$
|
37.9
|
|
$
|
5.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
During the fourth
quarter of 2022, the Company identified and corrected immaterial
errors related to the recognition and classification of certain
repairs and maintenance expenses in the first three quarters of
2022.
|
ProFrac Holding Corp.
(NasdaqGS: ACDC)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net
Income (Loss) to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
Dec.
31
|
|
Sep.
30
|
|
Dec.
31
|
|
Sep.
30
|
|
Dec.
31
|
|
Dec.
31
|
|
(In
millions)
|
|
2022
|
|
2022(1)
|
|
2021
|
|
2021
|
|
2022(1)
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
116.0
|
|
$
|
139.3
|
|
$
|
5.1
|
|
$
|
(14.1)
|
|
$
|
342.7
|
|
$
|
(43.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
20.5
|
|
|
16.3
|
|
|
6.7
|
|
|
6.9
|
|
|
59.5
|
|
|
25.8
|
|
Depreciation, depletion
and amortization
|
|
|
89.2
|
|
|
69.1
|
|
|
35.1
|
|
|
35.2
|
|
|
267.3
|
|
|
140.7
|
|
Income tax benefit
(provision)
|
|
|
(3.3)
|
|
|
7.9
|
|
|
-
|
|
|
0.2
|
|
|
9.1
|
|
|
(0.2)
|
|
Loss on disposal of
assets, net
|
|
|
(0.5)
|
|
|
0.7
|
|
|
2.3
|
|
|
3.4
|
|
|
2.1
|
|
|
9.8
|
|
Loss on extinguishment
of debt
|
|
|
0.3
|
|
|
0.2
|
|
|
0.5
|
|
|
-
|
|
|
17.6
|
|
|
0.5
|
|
Accruals for legal
contingencies
|
|
|
7.3
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
11.3
|
|
|
-
|
|
Stock-based
compensation
|
|
|
3.9
|
|
|
2.7
|
|
|
-
|
|
|
-
|
|
|
8.1
|
|
|
-
|
|
Stock-based
compensation related to deemed contributions
|
|
|
10.2
|
|
|
10.2
|
|
|
-
|
|
|
-
|
|
|
59.3
|
|
|
-
|
|
Bad debt expense, net
of recoveries
|
|
|
1.9
|
|
|
-
|
|
|
(3.7)
|
|
|
2.6
|
|
|
1.9
|
|
|
(1.2)
|
|
Loss on foreign
currency transactions
|
|
|
-
|
|
|
(0.1)
|
|
|
0.1
|
|
|
0.1
|
|
|
-
|
|
|
0.2
|
|
Reorganization
costs
|
|
|
-
|
|
|
-
|
|
|
1.8
|
|
|
0.2
|
|
|
-
|
|
|
2.1
|
|
Acquisition related
expenses
|
|
|
25.9
|
|
|
5.8
|
|
|
-
|
|
|
-
|
|
|
48.8
|
|
|
-
|
|
Severance
charges
|
|
|
-
|
|
|
-
|
|
|
0.5
|
|
|
-
|
|
|
-
|
|
|
0.5
|
|
Supply commitment
charges
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Unrealized gain on
investments, net
|
|
|
(8.0)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(16.5)
|
|
|
-
|
|
Adjusted
EBITDA
|
|
$
|
263.4
|
|
$
|
252.1
|
|
$
|
48.4
|
|
$
|
34.5
|
|
$
|
811.2
|
|
$
|
134.7
|
(1)
|
During the fourth
quarter of 2022, the Company identified and corrected immaterial
errors related to the recognition and classification of certain
repairs and maintenance expenses in the first three quarters of
2022.
|
ProFrac Holding Corp.
(NasdaqGS: ACDC)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net
Income (Loss) to Pro Forma Adjusted EBITDA excluding
Flotek
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
Dec.
31
|
|
Sep.
30
|
|
Dec.
31
|
|
Sep.
30
|
|
Dec.
31
|
|
Dec.
31
|
|
(In millions except
average active fleets and annualization factor)
|
|
2022
|
|
2022(1)
|
|
2021
|
|
2021
|
|
2022(1)
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
116.0
|
|
$
|
139.3
|
|
$
|
5.1
|
|
$
|
(14.1)
|
|
$
|
342.7
|
|
$
|
(43.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
20.5
|
|
|
16.3
|
|
|
6.7
|
|
|
6.9
|
|
|
59.5
|
|
|
25.8
|
|
Depreciation, depletion
and amortization
|
|
|
89.2
|
|
|
69.1
|
|
|
35.1
|
|
|
35.2
|
|
|
267.3
|
|
|
140.7
|
|
Income tax benefit
(provision)
|
|
|
(3.3)
|
|
|
7.9
|
|
|
-
|
|
|
0.2
|
|
|
9.1
|
|
|
(0.2)
|
|
Loss on disposal of
assets, net
|
|
|
(0.5)
|
|
|
0.7
|
|
|
2.3
|
|
|
3.4
|
|
|
2.1
|
|
|
9.8
|
|
Loss on extinguishment
of debt
|
|
|
0.3
|
|
|
0.2
|
|
|
0.5
|
|
|
-
|
|
|
17.6
|
|
|
0.5
|
|
Accruals for legal
contingencies
|
|
|
7.3
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
11.3
|
|
|
-
|
|
Stock-based
compensation
|
|
|
3.9
|
|
|
2.7
|
|
|
-
|
|
|
-
|
|
|
8.1
|
|
|
-
|
|
Stock-based
compensation related to deemed contributions
|
|
|
10.2
|
|
|
10.2
|
|
|
-
|
|
|
-
|
|
|
59.3
|
|
|
-
|
|
Bad debt expense, net
of recoveries
|
|
|
1.9
|
|
|
-
|
|
|
(3.7)
|
|
|
2.6
|
|
|
1.9
|
|
|
(1.2)
|
|
Loss on foreign
currency transactions
|
|
|
-
|
|
|
(0.1)
|
|
|
0.1
|
|
|
0.1
|
|
|
-
|
|
|
0.2
|
|
Reorganization
costs
|
|
|
-
|
|
|
-
|
|
|
1.8
|
|
|
0.2
|
|
|
-
|
|
|
2.1
|
|
Acquisition related
expenses
|
|
|
25.9
|
|
|
5.8
|
|
|
-
|
|
|
-
|
|
|
48.8
|
|
|
-
|
|
Severance
charges
|
|
|
-
|
|
|
-
|
|
|
0.5
|
|
|
-
|
|
|
-
|
|
|
0.5
|
|
Supply commitment
charges
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Unrealized gain on
investments, net
|
|
|
(8.0)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(16.5)
|
|
|
-
|
|
Total adjusted EBITDA
for reportable segments
|
|
$
|
263.4
|
|
$
|
252.1
|
|
$
|
48.4
|
|
$
|
34.5
|
|
$
|
811.2
|
|
$
|
134.7
|
|
Less: other business
activities operating results
|
|
|
5.8
|
|
|
11.1
|
|
|
-
|
|
|
-
|
|
|
24.3
|
|
|
-
|
|
Adjusted EBITDA
excluding other business activities
|
|
|
269.2
|
|
|
263.2
|
|
|
48.4
|
|
|
34.5
|
|
|
835.5
|
|
|
134.7
|
|
Average active
fleets
|
|
|
36.0
|
|
|
31.0
|
|
|
16.0
|
|
|
14.7
|
|
|
29.9
|
|
|
14.0
|
|
Adjusted EBITDA
excluding other business activities per average active
fleet
|
|
|
7.5
|
|
|
8.5
|
|
|
3.0
|
|
|
2.3
|
|
|
27.9
|
|
|
9.6
|
|
Annualization
factor
|
|
|
4.0
|
|
|
4.0
|
|
|
4.0
|
|
|
4.0
|
|
|
1.0
|
|
|
1.0
|
|
Annualized adjusted
EBITDA excluding other business activities per average
active fleet
|
|
$
|
29.9
|
|
$
|
34.0
|
|
$
|
12.1
|
|
$
|
9.4
|
|
$
|
27.9
|
|
$
|
9.6
|
(1)
|
During the fourth
quarter of 2022, the Company identified and corrected immaterial
errors related to the recognition and classification of certain
repairs and maintenance expenses in the first three quarters of
2022.
|
ProFrac Holding Corp.
(NasdaqGS: ACDC)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
Dec.
31
|
|
Sep.
30
|
|
Dec.
31
|
|
Sep.
30
|
|
Dec.
31
|
|
Dec.
31
|
|
|
(In
millions)
|
|
2022
|
|
2022(1)
|
|
2021
|
|
2021
|
|
2022(1)
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stimulation
services
|
|
$
|
767.4
|
|
$
|
668.6
|
|
$
|
242.4
|
|
$
|
190.7
|
|
$
|
2,348.7
|
|
$
|
745.4
|
|
|
Proppant
production
|
|
|
35.4
|
|
|
24.6
|
|
|
7.5
|
|
|
6.4
|
|
|
90.0
|
|
|
27.2
|
|
|
Manufacturing
|
|
|
51.1
|
|
|
48.7
|
|
|
25.6
|
|
|
19.9
|
|
|
166.7
|
|
|
76.4
|
|
|
Other
|
|
|
49.6
|
|
|
46.9
|
|
|
-
|
|
|
-
|
|
|
111.8
|
|
|
-
|
|
|
Total
segments
|
|
|
903.5
|
|
|
788.8
|
|
|
275.5
|
|
|
217.0
|
|
|
2,717.2
|
|
|
849.0
|
|
|
Eliminations
|
|
|
(109.4)
|
|
|
(92.1)
|
|
|
(27.5)
|
|
|
(21.1)
|
|
|
(291.6)
|
|
|
(80.6)
|
|
|
Total
revenues
|
|
$
|
794.1
|
|
$
|
696.7
|
|
$
|
248.0
|
|
$
|
195.9
|
|
$
|
2,425.6
|
|
$
|
768.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stimulation
services
|
|
$
|
252.1
|
|
$
|
249.5
|
|
$
|
47.6
|
|
$
|
31.6
|
|
$
|
771.4
|
|
$
|
122.6
|
|
|
Proppant
production
|
|
|
20.2
|
|
|
9.2
|
|
|
2.6
|
|
|
2.4
|
|
|
49.8
|
|
|
10.7
|
|
|
Manufacturing
|
|
|
(3.1)
|
|
|
4.5
|
|
|
(1.8)
|
|
|
0.5
|
|
|
14.3
|
|
|
1.4
|
|
|
Other
|
|
|
(5.8)
|
|
|
(11.1)
|
|
|
-
|
|
|
-
|
|
|
(24.3)
|
|
|
-
|
|
|
Adjusted EBITDA for
reportable segments
|
|
$
|
263.4
|
|
$
|
252.1
|
|
$
|
48.4
|
|
$
|
34.5
|
|
$
|
811.2
|
|
$
|
134.7
|
|
(1)
|
During the fourth
quarter of 2022, the Company identified and corrected immaterial
errors related to the recognition and classification of certain
repairs and maintenance expenses in the first three quarters of
2022.
|
ProFrac Holding Corp.
(NasdaqGS: ACDC)
|
|
|
|
|
Net Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec.
31
|
|
Sep.
30
|
|
(In
millions)
|
|
2022
|
|
2022
|
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
$
|
127.6
|
|
$
|
60.5
|
|
Long-term
debt
|
|
|
735.0
|
|
|
484.3
|
|
Long-term debt—related
party
|
|
|
62.8
|
|
|
-
|
|
Total debt
|
|
|
925.4
|
|
|
544.8
|
|
|
|
|
|
|
|
|
|
Plus: Unamortized debt
issuance costs
|
|
|
34.0
|
|
|
23.2
|
|
Total gross
debt
|
|
|
959.4
|
|
|
568.0
|
|
|
|
|
|
|
|
|
|
Less: Cash and cash
equivalents
|
|
|
(35.1)
|
|
|
(64.7)
|
|
Net debt
|
|
$
|
924.3
|
|
$
|
503.3
|
ProFrac Holding Corp.
(NasdaqGS: ACDC)
|
|
|
|
|
Net Debt excluding
Other Business Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec.
31
|
|
Sep.
30
|
|
(In
millions)
|
|
2022
|
|
2022
|
|
|
|
|
|
|
|
|
|
Current portion of
long-term debt
|
|
$
|
112.4
|
|
$
|
44.9
|
|
Long-term
debt
|
|
|
732.2
|
|
|
481.3
|
|
Long-term debt -
related party
|
|
|
62.8
|
|
|
-
|
|
Total debt
|
|
|
907.4
|
|
|
526.2
|
|
|
|
|
|
|
|
|
|
Plus: Unamortized debt
issuance costs
|
|
|
34.0
|
|
|
23.2
|
|
Total gross
debt
|
|
|
941.4
|
|
|
549.4
|
|
|
|
|
|
|
|
|
|
Less: Cash and cash
equivalents
|
|
|
(22.8)
|
|
|
(56.2)
|
|
Net debt
|
|
$
|
918.6
|
|
$
|
493.2
|
Contacts:
|
ProFrac Holding
Corp.
|
|
Lance Turner – Chief
Financial Officer
|
|
Bryan Wheatly –
Director, Investor Relations
|
|
investors@profrac.com
|
|
|
|
Dennard Lascar Investor Relations
|
|
Ken Dennard / Rick
Black
|
|
ACDC@dennardlascar.com
|
View original
content:https://www.prnewswire.com/news-releases/profrac-holding-corp-reports-2022-fourth-quarter-and-full-year-financial-and-operational-results-301776935.html
SOURCE ProFrac Holding Corp.