OKLAHOMA
CITY, March 1, 2024 /PRNewswire/ -- Mammoth
Energy Services, Inc. ("Mammoth" or the "Company") (NASDAQ: TUSK)
today announced payment of $50.6
million from the Puerto Rico Electric Power Authority
("PREPA") for a portion of the work its wholly-owned subsidiary
Cobra Acquisitions LLC ("Cobra") completed in the aftermath of
Hurricane Maria. This is in addition to $13.4 million paid by PREPA in January 2024. As previously announced, on
December 1, 2023, Cobra entered into
an agreement to transfer approximately $54.4
million of its outstanding receivable with PREPA to SPCP
Group, LLC ("SPCP Group"). The aggregate payments from PREPA in
2024 totaling $64.0 million fully
satisfied the obligations to SPCP Group and resulted in Cobra
receiving approximately $9.6 million
in cash.
Mark Layton, Chief Financial
Officer of Mammoth commented, "We're pleased to have received these
payments from PREPA, which has allowed us to extinguish the
liability owed to SPCP Group and collect nearly $10 million in cash. We continue to pursue
payment of the outstanding amounts owed to Cobra, including the
associated interest, as these payments represent only a portion of
the amounts still owed to us."
In addition, today Mammoth reported financial and operational
results for the fourth quarter and full year ended December 31, 2023.
Financial Overview for the Fourth Quarter and Full Year
2023:
Total revenue was $52.8 million
for the fourth quarter of 2023 compared to $102.9 million for the same quarter of 2022 and
$65.0 million for the third quarter
of 2023. Total revenue for the full year of 2023 was $309.5 million, a decrease of 15% compared to
$362.1 million in 2022.
Net loss for the fourth quarter of 2023 was $6.0 million, or $0.12 loss per diluted share, compared to net
income of $4.8 million, or
$0.10 per diluted share, for the same
quarter of 2022 and net loss of $1.1
million, or $0.02 loss per
diluted share, for the third quarter of 2023. Net loss for the full
year of 2023 was $3.2 million, or
$0.07 per fully diluted share,
compared to net loss of $0.6 million,
or $0.01 per fully diluted share for
2022.
Adjusted EBITDA (as defined and reconciled below) was
$10.5 million for the fourth quarter
of 2023, compared to $24.1 million
for the same quarter of 2022 and $13.4
million for the third quarter of 2023. Adjusted EBITDA was
$71.0 million for the full year of
2023 compared to $86.1 million for
2022.
Arty Straehla, Chief Executive Officer of Mammoth commented,
"The fourth quarter proved to be challenging, largely due to
additional deferred activity by exploration and production
companies, commodity price fluctuations, and customer budget
exhaustion. Despite the operational softness we experienced this
year, 2023 marked several accomplishments for Mammoth as we
completed a significant debt refinancing transaction, began
receiving payments from PREPA on our outstanding receivable and
entered into an agreement to monetize a portion of our outstanding
PREPA receivable.
"In 2023, we entered into a new revolving credit facility
agreement and a new term loan agreement, which refinanced, in full,
Mammoth's indebtedness outstanding under our previous revolving
credit facility. We believe these new agreements provide Mammoth
with a solid liquidity base for years to come. During 2023, we also
received our first payments from PREPA in more than four years
totaling $22.2 million. In addition,
we entered into an agreement to monetize a portion of our
outstanding receivable with PREPA, which allowed us to increase
liquidity and invest in our business. We used a portion of the
proceeds to repay in full our outstanding borrowings under the new
revolving credit facility, which currently remains undrawn. We plan
to use the remainder of the proceeds to invest back into our
business, which may include upgrading an additional hydraulic
fracturing fleet with dual fuel capabilities. This incremental dual
fuel fleet would result in three of our six fleets having dual fuel
capabilities."
Commenting further, Straehla said, "We exited 2023 with a strong
balance sheet and a secure financing structure that positions
Mammoth for future growth. We have entered 2024 with an improving
line of sight, particularly in our infrastructure and sand
divisions, and we will be opportunistic in our well completions
business as commodity prices improve and activity increases. I am
proud of the hard work and perseverance that our teams have
demonstrated across our organization. Our continued commitment to
safety and high-quality standards propels our organization
forward."
Well Completion Services
Mammoth's well completion services division contributed revenue
(inclusive of inter-segment revenue) of $16.1 million on 669 stages for the fourth
quarter of 2023, compared to $51.4
million on 1,837 stages for the same quarter of 2022 and
$20.3 million on 577 stages for the
third quarter of 2023. On average, 0.9 of the Company's fleets were
active for the fourth quarter of 2023 compared to an average
utilization of 3.4 fleets during the same quarter of 2022 and 1.2
fleets during the third quarter of 2023.
The well completion services division contributed revenues
(inclusive of inter-segment revenues) of $131.3 million on 4,220 stages for the full year
of 2023, down from $170.7 million on
6,149 stages for 2022. On average, 1.8 of the Company's fleets were
active in 2023 compared to 3.0 fleets in 2022.
Infrastructure Services
Mammoth's infrastructure services division contributed revenue
of $27.2 million for the fourth
quarter of 2023 compared to $29.6
million for the same quarter of 2022 and $26.7 million for the third quarter of 2023.
Average crew count was 78 crews during the fourth quarter of 2023
compared to 93 crews during the same quarter of 2022 and 81 crews
during the third quarter of 2023.
The infrastructure services division contributed revenues of
$110.5 million for the full year of
2023 compared to $111.5 million for
2022. Average crew count declined to 83 crews for 2023 compared to
91 crews for 2022.
Natural Sand Proppant Services
Mammoth's natural sand proppant services division contributed
revenue (inclusive of inter-segment revenue) of $4.5 million for the fourth quarter of 2023
compared to $13.8 million for the
same quarter of 2022 and $10.6
million for the third quarter of 2023. In the fourth quarter
of 2023, the Company sold approximately 104,000 tons of sand at an
average sales price of $23.62 per ton
compared to sales of approximately 366,000 tons of sand at an
average sales price of $29.80 per ton
during the same quarter of 2022. In the third quarter of 2023,
sales were approximately 352,000 tons of sand at an average price
of $30.18 per ton.
The natural sand proppant division contributed revenues
(inclusive of inter-segment revenues) of $39.1 million for the full year of 2023 compared
to $51.4 million for 2022. The
Company sold 1.2 million tons of sand during 2023, a decrease from
1.4 million tons of sand during 2022. The Company's average sales
price for the sand sold during 2023 was $29.86 per ton, an increase from $27.11 per ton average sales price during
2022.
Drilling Services
Mammoth's drilling services division contributed revenue
(inclusive of inter-segment revenue) of $0.6
million for the fourth quarter of 2023 compared to
$1.9 million for the same quarter of
2022 and $2.3 million for the third
quarter of 2023. The drilling services division contributed
revenues of $7.1 million for the full
year of 2023, compared to $8.4
million for 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 $4.9 million for the fourth quarter of 2023
compared to $6.9 million for the same
quarter of 2022 and $6.0 million for
the third quarter of 2023. The Company's other services contributed
revenues of $24.1 million for the
full year of 2023, compared to $25.2
million for 2022.
Selling, General and Administrative Expenses
Selling, general and administrative ("SG&A") expenses were
$8.3 million for the fourth quarter
of 2023 compared to $13.0 million for
the same quarter of 2022 and $10.4
million for the third quarter of 2023. SG&A expenses
were $37.5 million for the full year
of 2023 compared to $39.6 million for
2022.
Following is a breakout of SG&A expense (in thousands):
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
|
Cash
expenses:
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
$
3,898
|
|
$
3,932
|
|
$
3,392
|
|
$
15,563
|
|
$
13,729
|
|
Professional
services
|
2,559
|
|
3,434
|
|
4,684
|
|
13,448
|
|
13,501
|
|
Other(a)
|
1,808
|
|
1,885
|
|
2,105
|
|
7,693
|
|
8,012
|
|
Total cash SG&A
expense
|
8,265
|
|
9,251
|
|
10,181
|
|
36,704
|
|
35,242
|
|
Non-cash
expenses:
|
|
|
|
|
|
|
|
|
|
|
Change in provision
for expected credit losses
|
(177)
|
|
3,501
|
|
11
|
|
(591)
|
|
3,389
|
|
Stock based
compensation
|
219
|
|
241
|
|
219
|
|
1,345
|
|
923
|
|
Total non-cash
SG&A expense
|
42
|
|
3,742
|
|
230
|
|
754
|
|
4,312
|
|
Total SG&A
expense
|
$
8,307
|
|
$
12,993
|
|
$
10,411
|
|
$
37,458
|
|
$
39,554
|
|
|
|
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 16%
for the fourth quarter of 2023 compared to 13% for the same quarter
of 2022 and 16% for the third quarter of 2023. SG&A expenses,
as a percentage of total revenue, were 12% for the full year of
2023 compared to 11% for 2022.
Interest Expense and Financing Charges, net
Interest expense and financing charges, net were $6.8 million for the fourth quarter of 2023
compared to $3.2 million for the same
quarter of 2022 and $2.9 million for
the third quarter of 2023. Interest expense and financing charges,
net were $16.2 million for the full
year of 2023 compared to $11.5
million for 2022.
On December 1, 2023, Cobra entered
into an agreement to transfer approximately $54.4 million of its outstanding receivable with
PREPA to SPCP Group in exchange for net proceeds of $46.1 million. During the fourth quarter of 2023,
the Company incurred financing charges totaling $2.8 million in relation to this transaction.
Mammoth expects to recognize a financing charge totaling
approximately $5.5 million during the
first quarter of 2024 related to the termination of the Assignment
Agreement.
Liquidity
As of December 31, 2023, Mammoth had cash on hand of
$16.6 million. As of
December 31, 2023, the Company's revolving credit facility was
undrawn, the borrowing base was $27.0
million and there was $20.7
million of available borrowing capacity under the revolving
credit facility, after giving effect to $6.3
million of outstanding letters of credit. As of
December 31, 2023, Mammoth had total liquidity of $37.3 million.
As of February 28, 2024, Mammoth had cash on hand of
$10.5 million, no outstanding
borrowings under its revolving credit facility, and a borrowing
base of $23.3 million. As of
February 28, 2024, the Company had $17.0 million of available borrowing capacity
under its revolving credit facility and total liquidity of
$27.5 million. These amounts do
not include $9.6 million in cash
received on February 29, 2024.
Capital Expenditures
The following table summarizes Mammoth's capital expenditures by
operating division for the periods indicated (in thousands):
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
|
Well completion
services(a)
|
$
3,170
|
|
$
3,374
|
|
$
4,651
|
|
$
17,931
|
|
$
11,421
|
|
Infrastructure
services(b)
|
373
|
|
62
|
|
69
|
|
716
|
|
885
|
|
Natural sand proppant
services(c)
|
223
|
|
54
|
|
—
|
|
223
|
|
88
|
|
Drilling
services(c)
|
13
|
|
54
|
|
98
|
|
110
|
|
95
|
|
Other(d)
|
229
|
|
121
|
|
72
|
|
312
|
|
401
|
|
Eliminations
|
124
|
|
(26)
|
|
(165)
|
|
103
|
|
(153)
|
|
Total capital
expenditures
|
$
4,132
|
|
$
3,639
|
|
$
4,725
|
|
$
19,395
|
|
$
12,737
|
|
|
|
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 equipment for the Company's rental businesses for the
periods presented.
|
Mammoth's full year 2024 capital expenditure budget is
approximately $15 million.
Conference Call Information
Mammoth will host a conference call on Friday, March 1, 2024 at 9:00 a.m. Central time (10:00 a.m. Eastern time) to discuss its fourth
quarter and full year 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, plans for stock repurchases under its stock repurchase
program, 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: 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 and
the Israel-Hamas war on the global energy and capital markets and
global stability; performance of contracts and supply chain
disruptions; inflationary pressures; high 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
by 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 comply with the applicable financial covenants
and other terms and conditions under Mammoth's revolving credit
facility and term loan; weather; natural disasters; litigation;
volatility in commodity markets; competition in the oil and natural
gas and infrastructure industries; and costs and availability of
resources.
Investors are cautioned not to place undue reliance on any
forward-looking statement which speaks only as of the date on which
such statement is made. We undertake no obligation to correct,
revise or update any forward-looking statement after the date such
statement is made, whether as a result of new information, future
events or otherwise, except as required by applicable law.
|
MAMMOTH ENERGY SERVICES, INC.
CONSOLIDATED BALANCE
SHEETS
|
|
|
ASSETS
|
|
December
31,
|
|
December
31,
|
|
|
2023
|
|
2022
|
|
CURRENT
ASSETS
|
|
(in
thousands)
|
|
Cash and cash
equivalents
|
|
$
16,556
|
|
$
17,282
|
|
Restricted
Cash
|
|
7,742
|
|
—
|
|
Accounts receivable,
net
|
|
447,155
|
|
456,465
|
|
Receivables from
related parties, net
|
|
47
|
|
223
|
|
Inventories
|
|
12,653
|
|
8,883
|
|
Prepaid
expenses
|
|
12,181
|
|
13,219
|
|
Other current
assets
|
|
591
|
|
620
|
|
Total current
assets
|
|
496,925
|
|
496,692
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
113,905
|
|
138,066
|
|
Sand
reserves
|
|
58,528
|
|
61,830
|
|
Operating lease
right-of-use assets
|
|
9,551
|
|
10,656
|
|
Intangible assets,
net
|
|
913
|
|
1,782
|
|
Goodwill
|
|
9,214
|
|
11,717
|
|
Deferred income tax
asset
|
|
1,844
|
|
—
|
|
Other non-current
assets
|
|
7,599
|
|
3,935
|
|
Total
assets
|
|
$
698,479
|
|
$
724,678
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
Accounts
payable
|
|
$
27,508
|
|
$
47,391
|
|
Accrued expenses and
other current liabilities
|
|
86,713
|
|
52,297
|
|
Accrued expenses and
other current liabilities - related parties
|
|
1,241
|
|
—
|
|
Current operating
lease liability
|
|
5,771
|
|
5,447
|
|
Current portion of
long-term debt
|
|
—
|
|
83,520
|
|
Income taxes
payable
|
|
61,320
|
|
48,557
|
|
Total current
liabilities
|
|
182,553
|
|
237,212
|
|
|
|
|
|
|
Long-term debt from
related parties
|
|
42,809
|
|
—
|
|
Deferred income tax
liabilities
|
|
628
|
|
471
|
|
Long-term operating
lease liability
|
|
3,534
|
|
4,913
|
|
Asset retirement
obligation
|
|
4,140
|
|
3,981
|
|
Other long-term
liabilities
|
|
4,715
|
|
15,485
|
|
Total
liabilities
|
|
238,379
|
|
262,062
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Common stock, $0.01
par value, 200,000,000 shares authorized, 47,941,652 and
47,312,270
issued and outstanding at December 31, 2023 and 2022
|
|
479
|
|
473
|
|
Additional paid in
capital
|
|
539,558
|
|
539,138
|
|
Accumulated
deficit
|
|
(76,317)
|
|
(73,154)
|
|
Accumulated other
comprehensive loss
|
|
(3,620)
|
|
(3,841)
|
|
Total
equity
|
|
460,100
|
|
462,616
|
|
Total liabilities and
equity
|
|
$
698,479
|
|
$
724,678
|
|
MAMMOTH ENERGY
SERVICES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
|
(in thousands,
except per share amounts)
|
|
REVENUE
|
|
|
Services
revenue
|
$
48,087
|
|
$
88,963
|
|
$
54,025
|
|
$
269,227
|
|
$
311,968
|
|
Services revenue -
related parties
|
139
|
|
110
|
|
252
|
|
980
|
|
1,133
|
|
Product
revenue
|
4,556
|
|
13,836
|
|
10,682
|
|
39,285
|
|
48,985
|
|
Total
revenue
|
52,782
|
|
102,909
|
|
64,959
|
|
309,492
|
|
362,086
|
|
|
|
|
|
|
|
|
|
|
|
COST AND
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
Services cost of
revenue (exclusive of depreciation,
depletion, amortization and accretion of $6,931, $11,819,
$8,394, $37,356, and $55,546, respectively, for the three
months ended December 31, 2023, December 31, 2022, and
September 30, 2023 and years ended December 31, 2023
and 2022)
|
40,972
|
|
67,502
|
|
45,082
|
|
219,876
|
|
241,323
|
|
Services cost of
revenue - related parties
|
114
|
|
135
|
|
120
|
|
475
|
|
541
|
|
Product cost of
revenue (exclusive of depreciation,
depletion, amortization and accretion of $1,339, $2,014,
$2,836, $7,734, and $8,725, respectively, for the three
months ended December 31, 2023, December 31, 2022, and
September 30, 2023 and years ended December 31, 2023
and 2022)
|
4,692
|
|
9,226
|
|
7,615
|
|
27,489
|
|
36,723
|
|
Selling, general and
administrative
|
8,307
|
|
12,993
|
|
10,411
|
|
37,458
|
|
39,554
|
|
Depreciation,
depletion, amortization and accretion
|
8,271
|
|
13,786
|
|
11,233
|
|
45,110
|
|
64,271
|
|
Gains on disposal of
assets, net
|
(2,757)
|
|
(170)
|
|
(2,450)
|
|
(6,041)
|
|
(3,908)
|
|
Impairment of
goodwill
|
—
|
|
—
|
|
1,810
|
|
1,810
|
|
—
|
|
Total cost and
expenses
|
59,599
|
|
103,472
|
|
73,821
|
|
326,177
|
|
378,504
|
|
Operating
loss
|
(6,817)
|
|
(563)
|
|
(8,862)
|
|
(16,685)
|
|
(16,418)
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
Interest expense and
financing charges, net
|
(5,570)
|
|
(3,237)
|
|
(2,876)
|
|
(14,955)
|
|
(11,506)
|
|
Interest expense and
financing charges, net - related parties
|
(1,241)
|
|
—
|
|
—
|
|
(1,241)
|
|
—
|
|
Other income,
net
|
10,964
|
|
10,737
|
|
14,088
|
|
42,015
|
|
40,912
|
|
Total other
income
|
4,153
|
|
7,500
|
|
11,212
|
|
25,819
|
|
29,406
|
|
(Loss) income before
income taxes
|
(2,664)
|
|
6,937
|
|
2,350
|
|
9,134
|
|
12,988
|
|
Provision for income
taxes
|
3,291
|
|
2,165
|
|
3,438
|
|
12,297
|
|
13,607
|
|
Net (loss)
income
|
$
(5,955)
|
|
$
4,772
|
|
$
(1,088)
|
|
$
(3,163)
|
|
$
(619)
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
(LOSS) INCOME
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
266
|
|
(59)
|
|
(275)
|
|
221
|
|
(910)
|
|
Comprehensive (loss)
income
|
$
(5,689)
|
|
$
4,713
|
|
$
(1,363)
|
|
$
(2,942)
|
|
$
(1,529)
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
share (basic)
|
$
(0.12)
|
|
$
0.10
|
|
$
(0.02)
|
|
$
(0.07)
|
|
$
(0.01)
|
|
Net (loss) income per
share (diluted)
|
$
(0.12)
|
|
$
0.10
|
|
$
(0.02)
|
|
$
(0.07)
|
|
$
(0.01)
|
|
Weighted average number
of shares outstanding (basic)
|
47,942
|
|
47,312
|
|
47,942
|
|
47,777
|
|
47,175
|
|
Weighted average number
of shares outstanding (diluted)
|
47,942
|
|
47,963
|
|
47,942
|
|
47,777
|
|
47,175
|
|
MAMMOTH ENERGY SERVICES,
INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
Twelve Months
Ended
|
|
December
31,
|
|
2023
|
|
2022
|
|
(in
thousands)
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net loss
|
$
(3,163)
|
|
$
(619)
|
|
Adjustments to
reconcile net loss to cash provided by operating
activities:
|
|
|
|
|
Stock based
compensation
|
1,345
|
|
923
|
|
Depreciation,
depletion, accretion and amortization
|
45,110
|
|
64,271
|
|
Amortization of debt
origination costs
|
1,288
|
|
777
|
|
Change in provision
for expected credit losses
|
(591)
|
|
3,389
|
|
Gains on disposal of
assets
|
(6,041)
|
|
(3,908)
|
|
Gains from sales of
equipment damaged or lost down-hole
|
(335)
|
|
(604)
|
|
Impairment of
goodwill
|
1,810
|
|
—
|
|
Gain on sale of
business
|
(2,080)
|
|
—
|
|
Deferred income
taxes
|
(1,687)
|
|
7,700
|
|
Other
|
(693)
|
|
(117)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts receivable,
net
|
11,099
|
|
(52,392)
|
|
Receivables from
related parties, net
|
176
|
|
(135)
|
|
Inventories
|
(3,770)
|
|
(517)
|
|
Prepaid expenses and
other assets
|
354
|
|
(710)
|
|
Accounts
payable
|
(18,485)
|
|
6,680
|
|
Accrued expenses and
other liabilities
|
(6,949)
|
|
(15,272)
|
|
Accrued expenses and
other liabilities - related parties
|
1,241
|
|
—
|
|
Income taxes
payable
|
12,757
|
|
5,800
|
|
Net cash provided by
operating activities
|
31,386
|
|
15,266
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Purchases of property
and equipment
|
(19,395)
|
|
(12,737)
|
|
Business divestitures,
net of cash transferred
|
3,276
|
|
—
|
|
Proceeds from disposal
of property and equipment
|
7,333
|
|
10,613
|
|
Net cash used in
investing activities
|
(8,786)
|
|
(2,124)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Borrowings on
long-term debt
|
201,091
|
|
197,975
|
|
Borrowings on
long-term debt - related parties
|
43,874
|
|
—
|
|
Repayments of
long-term debt
|
(284,610)
|
|
(199,430)
|
|
Proceeds from
financing transaction
|
46,120
|
|
—
|
|
Proceeds from
sale-leaseback transaction
|
—
|
|
4,589
|
|
Payments on
sale-leaseback transaction
|
(4,958)
|
|
(4,429)
|
|
Principal payments on
financing leases and equipment financing notes
|
(12,212)
|
|
(4,306)
|
|
Debt issuance
costs
|
(3,972)
|
|
—
|
|
Other
|
(919)
|
|
—
|
|
Net cash used in
financing activities
|
(15,586)
|
|
(5,601)
|
|
Effect of foreign
exchange rate on cash
|
2
|
|
(158)
|
|
Net change in cash,
cash equivalents and restricted cash
|
7,016
|
|
7,383
|
|
Cash, cash equivalents
and restricted cash at beginning of period
|
17,282
|
|
9,899
|
|
Cash, cash equivalents
and restricted cash at end of period
|
$
24,298
|
|
$
17,282
|
|
|
|
|
|
Supplemental disclosure
of cash flow information:
|
|
|
|
|
Cash paid for
interest
|
$
12,017
|
|
$
10,164
|
|
Cash paid for income
taxes, net of refunds received
|
$
897
|
|
$
106
|
|
Supplemental disclosure
of non-cash transactions:
|
|
|
|
|
Purchases of property
and equipment included in accounts payable
|
$
3,339
|
|
$
4,736
|
|
Right-of-use assets
obtained for financing lease liabilities
|
$
1,417
|
|
$
3,058
|
|
MAMMOTH ENERGY
SERVICES, INC.
SEGMENT INCOME STATEMENTS
(in thousands)
|
|
|
Three Months Ended
December 31, 2023
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
|
Revenue from external
customers
|
$
15,962
|
$
27,229
|
$
4,464
|
$
625
|
$
4,502
|
$
—
|
$
52,782
|
|
Intersegment
revenues
|
116
|
—
|
—
|
—
|
360
|
(476)
|
—
|
|
Total
revenue
|
16,078
|
27,229
|
4,464
|
625
|
4,862
|
(476)
|
52,782
|
|
Cost of revenue,
exclusive of depreciation,
depletion, amortization and accretion
|
14,248
|
22,668
|
4,419
|
1,059
|
3,384
|
—
|
45,778
|
|
Intersegment cost of
revenues
|
216
|
119
|
—
|
—
|
141
|
(476)
|
—
|
|
Total cost of
revenue
|
14,464
|
22,787
|
4,419
|
1,059
|
3,525
|
(476)
|
45,778
|
|
Selling, general and
administrative
|
1,365
|
4,987
|
973
|
193
|
789
|
—
|
8,307
|
|
Depreciation,
depletion, amortization and accretion
|
3,506
|
1,023
|
1,339
|
1,017
|
1,386
|
—
|
8,271
|
|
(Gains) losses on
disposal of assets, net
|
(75)
|
(71)
|
3
|
(1,577)
|
(1,037)
|
—
|
(2,757)
|
|
Operating (loss)
income
|
(3,182)
|
(1,497)
|
(2,270)
|
(67)
|
199
|
—
|
(6,817)
|
|
Interest expense and
financing charges, net
|
1,975
|
4,394
|
119
|
113
|
210
|
—
|
6,811
|
|
Other expense (income),
net
|
1
|
(10,539)
|
(5)
|
(33)
|
(388)
|
—
|
(10,964)
|
|
(Loss) income before
income taxes
|
$
(5,158)
|
$
4,648
|
$
(2,384)
|
$
(147)
|
$
377
|
$
—
|
$
(2,664)
|
|
|
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
|
$
1,919
|
$
6,322
|
$
—
|
$
102,909
|
|
Intersegment
revenues
|
147
|
—
|
25
|
—
|
602
|
(774)
|
—
|
|
Total
revenue
|
51,439
|
29,559
|
13,842
|
1,919
|
6,924
|
(774)
|
102,909
|
|
Cost of revenue,
exclusive of depreciation,
depletion, amortization and accretion
|
36,108
|
24,387
|
10,081
|
1,756
|
4,531
|
—
|
76,863
|
|
Intersegment cost of
revenues
|
475
|
23
|
—
|
32
|
242
|
(772)
|
—
|
|
Total cost of
revenue
|
36,583
|
24,410
|
10,081
|
1,788
|
4,773
|
(772)
|
76,863
|
|
Selling, general and
administrative
|
2,328
|
5,091
|
4,397
|
184
|
993
|
—
|
12,993
|
|
Depreciation,
depletion, amortization and accretion
|
4,140
|
3,675
|
2,015
|
1,390
|
2,566
|
—
|
13,786
|
|
(Gains) losses on
disposal of assets, net
|
(68)
|
—
|
1
|
—
|
(103)
|
—
|
(170)
|
|
Operating income
(loss)
|
8,456
|
(3,617)
|
(2,652)
|
(1,443)
|
(1,305)
|
(2)
|
(563)
|
|
Interest expense and
financing charges, net
|
617
|
2,046
|
201
|
134
|
239
|
—
|
3,237
|
|
Other expense (income),
net
|
1
|
(10,522)
|
(4)
|
—
|
(212)
|
—
|
(10,737)
|
|
Income (loss) before
income taxes
|
$
7,838
|
$
4,859
|
$
(2,849)
|
$
(1,577)
|
$
(1,332)
|
$
(2)
|
$
6,937
|
|
|
Three months ended
September 30, 2023
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
|
Revenue from external
customers
|
$
20,166
|
$
26,712
|
$
10,633
|
$
2,336
|
$
5,112
|
$
—
|
$
64,959
|
|
Intersegment
revenues
|
161
|
—
|
—
|
—
|
909
|
(1,070)
|
—
|
|
Total
revenue
|
20,327
|
26,712
|
10,633
|
2,336
|
6,021
|
(1,070)
|
64,959
|
|
Cost of revenue,
exclusive of depreciation,
depletion, amortization and accretion
|
17,528
|
22,042
|
6,977
|
2,194
|
4,076
|
—
|
52,817
|
|
Intersegment cost of
revenues
|
325
|
10
|
—
|
—
|
735
|
(1,070)
|
—
|
|
Total cost of
revenue
|
17,853
|
22,052
|
6,977
|
2,194
|
4,811
|
(1,070)
|
52,817
|
|
Selling, general and
administrative
|
1,579
|
6,495
|
1,224
|
215
|
898
|
—
|
10,411
|
|
Depreciation,
depletion, amortization and accretion
|
3,971
|
1,557
|
2,836
|
1,114
|
1,755
|
—
|
11,233
|
|
Gains on disposal of
assets, net
|
(2,016)
|
(311)
|
—
|
—
|
(123)
|
—
|
(2,450)
|
|
Impairment of
goodwill
|
—
|
—
|
—
|
—
|
1,810
|
—
|
1,810
|
|
Operating
loss
|
(1,060)
|
(3,081)
|
(404)
|
(1,187)
|
(3,130)
|
—
|
(8,862)
|
|
Interest expense and
financing charges, net
|
774
|
1,647
|
117
|
117
|
221
|
—
|
2,876
|
|
Other income,
net
|
—
|
(11,348)
|
(6)
|
—
|
(2,734)
|
—
|
(14,088)
|
|
(Loss) income before
income taxes
|
$
(1,834)
|
$
6,620
|
$
(515)
|
$
(1,304)
|
$
(617)
|
$
—
|
$
2,350
|
|
|
Year ended December 31,
2023
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
|
Revenue from external
customers
|
$
130,771
|
$
110,537
|
$
39,106
|
$
7,126
|
$
21,952
|
$
—
|
$
309,492
|
|
Intersegment
revenues
|
517
|
—
|
25
|
—
|
2,102
|
(2,644)
|
$
—
|
|
Total
revenue
|
131,288
|
110,537
|
39,131
|
7,126
|
24,054
|
(2,644)
|
309,492
|
|
Cost of revenue,
exclusive of depreciation,
depletion, amortization and accretion
|
107,405
|
90,478
|
26,324
|
7,095
|
16,538
|
—
|
247,840
|
|
Intersegment cost of
revenues
|
1,246
|
149
|
—
|
26
|
1,223
|
(2,644)
|
$
—
|
|
Total cost of
revenue
|
108,651
|
90,627
|
26,324
|
7,121
|
17,761
|
(2,644)
|
247,840
|
|
Selling, general and
administrative
|
7,212
|
22,078
|
3,655
|
746
|
3,767
|
—
|
37,458
|
|
Depreciation,
depletion, amortization and accretion
|
16,794
|
8,390
|
7,737
|
4,514
|
7,675
|
—
|
45,110
|
|
Gains on disposal of
assets, net
|
(2,091)
|
(510)
|
(13)
|
(1,577)
|
(1,850)
|
—
|
(6,041)
|
|
Impairment of
goodwill
|
—
|
—
|
—
|
—
|
1,810
|
—
|
1,810
|
|
Operating income
(loss)
|
722
|
(10,048)
|
1,428
|
(3,678)
|
(5,109)
|
—
|
(16,685)
|
|
Interest expense and
financing charges, net
|
4,502
|
9,753
|
540
|
489
|
912
|
—
|
16,196
|
|
Other expense (income),
net
|
2
|
(39,252)
|
(18)
|
(33)
|
(2,714)
|
—
|
(42,015)
|
|
(Loss) income before
income taxes
|
$
(3,782)
|
$
19,451
|
$
906
|
$
(4,134)
|
$
(3,307)
|
$
—
|
$
9,134
|
|
|
Year ended December 31,
2022
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
|
Revenue from external
customers
|
$
169,872
|
$
111,452
|
$
48,916
|
$
8,380
|
$
23,466
|
$
—
|
$
362,086
|
|
Intersegment
revenues
|
791
|
—
|
2,475
|
—
|
1,708
|
(4,974)
|
—
|
|
Total
revenue
|
170,663
|
111,452
|
51,391
|
8,380
|
25,174
|
(4,974)
|
362,086
|
|
Cost of revenue,
exclusive of depreciation,
depletion, amortization and accretion
|
124,848
|
91,577
|
36,783
|
7,514
|
17,865
|
—
|
278,587
|
|
Intersegment cost of
revenues
|
3,894
|
72
|
—
|
85
|
923
|
(4,974)
|
—
|
|
Total cost of
revenue
|
128,742
|
91,649
|
36,783
|
7,599
|
18,788
|
(4,974)
|
278,587
|
|
Selling, general and
administrative
|
8,642
|
19,147
|
7,171
|
606
|
3,988
|
—
|
39,554
|
|
Depreciation,
depletion, amortization and accretion
|
22,103
|
16,171
|
8,732
|
5,811
|
11,454
|
—
|
64,271
|
|
Gains on disposal of
assets, net
|
(615)
|
(795)
|
(89)
|
—
|
(2,409)
|
—
|
(3,908)
|
|
Operating income
(loss)
|
11,791
|
(14,720)
|
(1,206)
|
(5,636)
|
(6,647)
|
—
|
(16,418)
|
|
Interest expense and
financing charges, net
|
1,940
|
7,390
|
753
|
435
|
988
|
—
|
11,506
|
|
Other income,
net
|
(343)
|
(40,470)
|
(14)
|
—
|
(85)
|
—
|
(40,912)
|
|
Income (loss) before
income taxes
|
$
10,194
|
$
18,360
|
$
(1,945)
|
$
(6,071)
|
$
(7,550)
|
$
—
|
$
12,988
|
|
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 (loss) income before depreciation,
depletion, amortization and accretion expense, gains on disposal of
assets, net, impairment of goodwill, stock based compensation,
interest expense and financing charges, 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 (loss) income 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 (loss) income 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 (loss) income on a consolidated basis and for each
of the Company's segments (in thousands):
|
|
|
Consolidated
|
|
Three Months
Ended
|
|
Years
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
Reconciliation of
net (loss) income to Adjusted EBITDA:
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
|
Net (loss)
income
|
$
(5,955)
|
|
$
4,772
|
|
$
(1,088)
|
|
$
(3,163)
|
|
$
(619)
|
|
Depreciation,
depletion, amortization and accretion expense
|
8,271
|
|
13,786
|
|
11,233
|
|
45,110
|
|
64,271
|
|
Gains on disposal of
assets, net
|
(2,757)
|
|
(170)
|
|
(2,450)
|
|
(6,041)
|
|
(3,908)
|
|
Impairment of
goodwill
|
—
|
|
—
|
|
1,810
|
|
1,810
|
|
—
|
|
Stock based
compensation
|
219
|
|
241
|
|
219
|
|
1,345
|
|
923
|
|
Interest expense and
financing charges, net
|
6,811
|
|
3,237
|
|
2,876
|
|
16,196
|
|
11,506
|
|
Other income,
net
|
(10,964)
|
|
(10,737)
|
|
(14,088)
|
|
(42,015)
|
|
(40,912)
|
|
Provision for income
taxes
|
3,291
|
|
2,165
|
|
3,438
|
|
12,297
|
|
13,607
|
|
Interest on trade
accounts receivable
|
11,543
|
|
10,785
|
|
11,443
|
|
45,440
|
|
41,276
|
|
Adjusted
EBITDA
|
$
10,459
|
|
$
24,079
|
|
$
13,393
|
|
$
70,979
|
|
$
86,144
|
|
|
Well Completion
Services
|
|
Three Months
Ended
|
|
Years
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
Reconciliation of
net (loss) income to Adjusted EBITDA:
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
|
Net (loss)
income
|
$
(5,158)
|
|
$
7,838
|
|
$
(1,834)
|
|
$
(3,782)
|
|
$
10,194
|
|
Depreciation and
amortization expense
|
3,506
|
|
4,140
|
|
3,971
|
|
16,794
|
|
22,103
|
|
Gains on disposal of
assets, net
|
(75)
|
|
(68)
|
|
(2,016)
|
|
(2,091)
|
|
(615)
|
|
Stock based
compensation
|
57
|
|
106
|
|
64
|
|
508
|
|
380
|
|
Interest expense and
financing charges, net
|
1,975
|
|
617
|
|
774
|
|
4,502
|
|
1,940
|
|
Other expense (income),
net
|
1
|
|
1
|
|
—
|
|
2
|
|
(343)
|
|
Adjusted
EBITDA
|
$
306
|
|
$
12,634
|
|
$
959
|
|
$
15,933
|
|
$
33,659
|
|
|
Infrastructure
Services
|
|
Three Months
Ended
|
|
Years
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
Reconciliation of
net income to Adjusted EBITDA:
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
|
Net income
|
$
1,844
|
|
$
1,609
|
|
$
3,239
|
|
$
8,237
|
|
$
4,933
|
|
Depreciation and
amortization expense
|
1,023
|
|
3,675
|
|
1,557
|
|
8,390
|
|
16,171
|
|
Gains on disposal of
assets, net
|
(71)
|
|
—
|
|
(311)
|
|
(510)
|
|
(795)
|
|
Stock based
compensation
|
103
|
|
88
|
|
99
|
|
538
|
|
349
|
|
Interest expense and
financing charges, net
|
4,394
|
|
2,046
|
|
1,647
|
|
9,753
|
|
7,390
|
|
Other income,
net
|
(10,539)
|
|
(10,522)
|
|
(11,348)
|
|
(39,252)
|
|
(40,470)
|
|
Provision for income
taxes
|
2,804
|
|
3,250
|
|
3,381
|
|
11,214
|
|
13,427
|
|
Interest on trade
accounts receivable
|
11,543
|
|
10,785
|
|
11,443
|
|
45,440
|
|
41,276
|
|
Adjusted
EBITDA
|
$
11,101
|
|
$
10,931
|
|
$
9,707
|
|
$
43,810
|
|
$
42,281
|
|
|
Natural Sand
Proppant Services
|
|
Three Months
Ended
|
|
Years
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
Reconciliation of
net (loss) income to Adjusted EBITDA:
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
|
Net (loss)
income
|
$
(2,384)
|
|
$
(2,849)
|
|
$
(515)
|
|
$
906
|
|
$
(1,945)
|
|
Depreciation,
depletion, amortization and accretion expense
|
1,339
|
|
2,015
|
|
2,836
|
|
7,737
|
|
8,732
|
|
Losses (gains) on
disposal of assets, net
|
3
|
|
1
|
|
—
|
|
(13)
|
|
(89)
|
|
Stock based
compensation
|
38
|
|
29
|
|
37
|
|
187
|
|
119
|
|
Interest expense and
financing charges, net
|
119
|
|
201
|
|
117
|
|
540
|
|
753
|
|
Other income,
net
|
(5)
|
|
(4)
|
|
(6)
|
|
(18)
|
|
(14)
|
|
Adjusted
EBITDA
|
$
(890)
|
|
$
(607)
|
|
$
2,469
|
|
$
9,339
|
|
$
7,556
|
|
|
Drilling
Services
|
|
Three Months
Ended
|
|
Years
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
Reconciliation of
net loss to Adjusted EBITDA:
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
|
Net loss
|
$
(147)
|
|
$
(1,577)
|
|
$
(1,304)
|
|
$
(4,134)
|
|
$
(6,071)
|
|
Depreciation
expense
|
1,017
|
|
1,390
|
|
1,114
|
|
4,514
|
|
5,811
|
|
Gains on disposal of
assets, net
|
(1,577)
|
|
—
|
|
—
|
|
(1,577)
|
|
—
|
|
Stock based
compensation
|
5
|
|
3
|
|
5
|
|
23
|
|
11
|
|
Interest expense and
financing charges, net
|
113
|
|
134
|
|
117
|
|
489
|
|
435
|
|
Other income,
net
|
(33)
|
|
—
|
|
—
|
|
(33)
|
|
—
|
|
Adjusted
EBITDA
|
$
(622)
|
|
$
(50)
|
|
$
(68)
|
|
$
(718)
|
|
$
186
|
|
|
Other
Services(a)
|
|
Three Months
Ended
|
|
Years
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
Reconciliation of
net loss to Adjusted EBITDA:
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
|
Net loss
|
$
(110)
|
|
$
(249)
|
|
$
(674)
|
|
$
(4,390)
|
|
$
(7,730)
|
|
Depreciation,
amortization and accretion expense
|
1,386
|
|
2,566
|
|
1,755
|
|
7,675
|
|
11,454
|
|
Gains on disposal of
assets, net
|
(1,037)
|
|
(103)
|
|
(123)
|
|
(1,850)
|
|
(2,409)
|
|
Impairment of
goodwill
|
—
|
|
—
|
|
1,810
|
|
1,810
|
|
—
|
|
Stock based
compensation
|
16
|
|
15
|
|
14
|
|
89
|
|
64
|
|
Interest expense and
financing charges, net
|
210
|
|
239
|
|
221
|
|
912
|
|
988
|
|
Other income,
net
|
(388)
|
|
(212)
|
|
(2,734)
|
|
(2,714)
|
|
(85)
|
|
Provision (benefit) for
income taxes
|
487
|
|
(1,085)
|
|
57
|
|
1,083
|
|
180
|
|
Adjusted
EBITDA
|
$
564
|
|
$
1,171
|
|
$
326
|
|
$
2,615
|
|
$
2,462
|
|
|
|
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.
|
|
Adjusted Net (Loss)
Income and Adjusted (Loss) Earnings per Share
|
|
|
Adjusted net (loss)
income and adjusted basic and diluted (loss) earnings per share are
supplemental non-GAAP financial measures that are used by
management to evaluate the Company's operating and financial
performance. Mammoth defines adjusted net (loss) income as net
(loss) income before impairment of goodwill. Mammoth defines
adjusted basic and diluted (loss) earnings per share as (loss)
earnings 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) income and adjusted (loss) earnings
per share should not be considered in isolation or as a substitute
for net (loss) income and (loss) earnings per share prepared in
accordance with GAAP and may not be comparable to other similarly
titled measures of other companies. The following tables provide a
reconciliation of adjusted net (loss) income and adjusted (loss)
earnings per share to the GAAP financial measures of net (loss)
income and (loss) earnings per share for the periods
specified.
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2023
|
|
2022
|
|
(in thousands,
except per share amounts)
|
|
Net (loss) income, as
reported
|
$
(5,955)
|
|
$
4,772
|
|
$
(1,088)
|
|
$
(3,163)
|
|
$
(619)
|
|
Impairment of
goodwill
|
—
|
|
—
|
|
—
|
|
1,810
|
|
—
|
|
Adjusted net (loss)
income
|
$
(5,955)
|
|
$
4,772
|
|
$
(1,088)
|
|
$
(1,353)
|
|
$
(619)
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss) earnings
per share, as reported
|
$
(0.12)
|
|
$
0.10
|
|
$
(0.02)
|
|
$
(0.07)
|
|
$
(0.01)
|
|
Impairment of
goodwill
|
—
|
|
—
|
|
—
|
|
0.04
|
|
—
|
|
Adjusted basic (loss)
earnings per share
|
$
(0.12)
|
|
$
0.10
|
|
$
(0.02)
|
|
$
(0.03)
|
|
$
(0.01)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss) earnings
per share, as reported
|
$
(0.12)
|
|
$
0.10
|
|
$
(0.02)
|
|
$
(0.07)
|
|
$
(0.01)
|
|
Impairment of
goodwill
|
—
|
|
—
|
|
—
|
|
0.04
|
|
—
|
|
Adjusted diluted (loss)
earnings per share
|
$
(0.12)
|
|
$
0.10
|
|
$
(0.02)
|
|
$
(0.03)
|
|
$
(0.01)
|
View original
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SOURCE Mammoth Energy Services, Inc.