OKLAHOMA
CITY, May 2, 2024 /PRNewswire/ -- Mammoth Energy
Services, Inc. ("Mammoth" or the "Company") (NASDAQ: TUSK) today
reported financial and operational results for the first quarter
ended March 31, 2024.
Financial Overview for the First Quarter 2024:
Total revenue was $43.2 million
for the first quarter of 2024 compared to $116.3 million for the same quarter of 2023 and
$52.8 million for the fourth quarter
of 2023.
Net loss for the first quarter of 2024 was $11.8 million, or $0.25 loss per diluted share, compared to net
income of $8.4 million, or
$0.17 per diluted share, for the same
quarter of 2023 and net loss of $6.0
million, or $0.12 loss per
diluted share, for the fourth quarter of 2023.
Adjusted EBITDA (as defined and reconciled below) was
$4.5 million for the first quarter of
2024, compared to $30.7 million for
the same quarter of 2023 and $10.5
million for the fourth quarter of 2023.
Arty Straehla, Chief Executive Officer of Mammoth commented,
"Our results were challenged in the first quarter as activity
softness persisted into the first few months of 2024, especially in
the natural gas basins in which we operate, which negatively
impacted our Well Completion Services division and other oilfield
services. This softness resulted primarily from lower energy
prices, particularly natural gas, that have caused operators to
delay completions activity until later in the year, reducing demand
for our services. The first quarter also experienced milder weather
than historical trends would have indicated, and this resulted in
less storm-related work for our Infrastructure Services business.
We continue to prudently assess and manage our costs to more
accurately reflect the activity levels of our customers, and as a
result, we are proactively lowering our 2024 capex guidance to
$9 million, representing a
$6 million decrease from our prior
guidance.
"As we look ahead to the remainder of 2024, we believe that our
first quarter results will serve as the low-water mark for the
year. We have improved visibility and expect that we will benefit
from increased activity levels later this year. We enter the second
quarter with an undrawn revolver and cash on the balance sheet, and
we believe Mammoth is well positioned to capitalize on near-term
opportunities in the market as well as the increased demand that we
anticipate in the second half of the year.
"So far this year, PREPA paid an aggregate of $64 million with respect to our accounts
receivable, of which we retained $9.6
million and the remaining $54.4
million was paid to SPCP Group to satisfy, in full,
Mammoth's and Cobra's obligations under the previously reported
financing arrangement with SPCP Group. These payments enhanced our
liquidity position and strengthened the Company. However, the
amounts paid to date only represent a portion of the outstanding
PREPA receivable. Mammoth, through Cobra, is still owed
approximately $349 million in
principal and associated interest for work that was completed over
five years ago." concluded Straehla.
Well Completion Services
Mammoth's well completion
services division contributed revenue (inclusive of inter-segment
revenue) of $8.3 million on 380
stages for the first quarter of 2024, compared to $67.3 million on 2,018 stages for the same
quarter of 2023 and $16.1 million on
669 stages for the fourth quarter of 2023. On average, 0.6 of the
Company's fleets were active for the first quarter of 2024 compared
to an average utilization of 3.6 fleets during the same quarter of
2023 and 0.9 fleets during the fourth quarter of 2023.
Infrastructure Services
Mammoth's infrastructure
services division contributed revenue of $25.0 million for the first quarter of 2024
compared to $28.3 million for the
same quarter of 2023 and $27.2
million for the fourth quarter of 2023. Average crew count
was 75 crews during the first quarter of 2024 compared to 88 crews
during the same quarter of 2023 and 78 crews during the fourth
quarter of 2024.
Natural Sand Proppant Services
Mammoth's natural sand
proppant services division contributed revenue (inclusive of
inter-segment revenue) of $4.3
million for the first quarter of 2024 compared to
$12.5 million for the same quarter of
2023 and $4.5 million for the fourth
quarter of 2023. In the first quarter of 2024, the Company sold
approximately 146,000 tons of sand at an average sales price of
$24.38 per ton compared to sales of
approximately 391,000 tons of sand at an average sales price of
$31.02 per ton during the same
quarter of 2023. In the fourth quarter of 2023, sales were
approximately 104,000 tons of sand at an average price of
$23.62 per ton. Additionally, during
the fourth quarter of 2023, the Company recognized shortfall
revenue of approximately $2.0
million.
Drilling Services
Mammoth's drilling services division
contributed revenue (inclusive of inter-segment revenue) of
$0.5 million for the first quarter of
2024 compared to $1.4 million for the
same quarter of 2023 and $0.6 million
for the fourth quarter of 2023. 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 $6.2 million for the
first quarter of 2024 compared to $7.5
million for the same quarter of 2023 and $4.9 million for the fourth quarter of 2023.
Selling, General and Administrative Expenses
Selling,
general and administrative ("SG&A") expenses were $8.8 million for the first quarter of 2024
compared to $8.4 million for the same
quarter of 2023 and $8.3 million for
the fourth quarter of 2023.
Following is a breakout of SG&A expense (in thousands):
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
2024
|
|
2023
|
|
2023
|
|
Cash
expenses:
|
|
|
|
|
|
|
Compensation and
benefits
|
$
4,104
|
|
$
4,277
|
|
$
3,898
|
|
Professional
services
|
2,457
|
|
1,929
|
|
2,559
|
|
Other(a)
|
1,773
|
|
1,911
|
|
1,808
|
|
Total cash SG&A
expense
|
8,334
|
|
8,117
|
|
8,265
|
|
Non-cash
expenses:
|
|
|
|
|
|
|
Change in provision
for expected credit losses
|
229
|
|
(381)
|
|
(177)
|
|
Stock based
compensation
|
219
|
|
647
|
|
219
|
|
Total non-cash
SG&A expense
|
448
|
|
266
|
|
42
|
|
Total SG&A
expense
|
$
8,782
|
|
$
8,383
|
|
$
8,307
|
|
|
|
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 20%
for the first quarter of 2024 compared to 7% for the same quarter
of 2023 and 16% for the fourth quarter of 2023.
Interest Expense and Financing Charges, net
Interest
expense and financing charges, net were $8.1
million for the first quarter of 2024 compared to
$3.3 million for the same quarter of
2023 and $6.8 million for the fourth
quarter of 2024. The Company recognized a financing charge totaling
$5.5 million during the three months
ended March 31, 2024 related to the
termination of the Assignment Agreement with SPCP Group LLC.
Liquidity
As of March 31, 2024, Mammoth had cash
on hand of $22.0 million. As of
March 31, 2024, the Company's revolving credit facility was
undrawn, the borrowing base was $27.3
million and there was $21.0
million of available borrowing capacity under the revolving
credit facility, after giving effect to $6.3
million of outstanding letters of credit. As of
March 31, 2024, Mammoth had total liquidity of $43.0 million.
As of April 30, 2024, Mammoth had
cash on hand of $15.5 million, no
outstanding borrowings under its revolving credit facility, and a
borrowing base of $19.9 million. As
of April 30, 2024, the Company had
$13.6 million of available borrowing
capacity under its revolving credit facility and total liquidity of
$29.1 million.
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,
|
|
2024
|
|
2023
|
|
2023
|
|
Well completion
services(a)
|
$
2,663
|
|
$
5,772
|
|
$
3,170
|
|
Infrastructure
services(b)
|
683
|
|
203
|
|
373
|
|
Natural sand proppant
services(c)
|
—
|
|
—
|
|
223
|
|
Drilling
services(c)
|
—
|
|
—
|
|
13
|
|
Other(d)
|
146
|
|
—
|
|
229
|
|
Eliminations
|
659
|
|
61
|
|
124
|
|
Total capital
expenditures
|
$
4,151
|
|
$
6,036
|
|
$
4,132
|
|
|
|
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.
|
|
|
Conference Call Information
Mammoth will host a
conference call on Thursday, May 2,
2024 at 9:00 a.m. Central time
(10:00 a.m. Eastern time) to discuss
its first quarter financial and operational results. The telephone
number to access the conference call is 1-201-389-0872. The
conference call will also be webcast live on
https://ir.mammothenergy.com/events-presentations. Please submit
any questions for management prior to the call via email to
TUSK@dennardlascar.com.
About Mammoth Energy Services, Inc.
Mammoth is an
integrated, growth-oriented energy services company focused on the
providing products and services to enable the exploration and
development of North American onshore unconventional oil and
natural gas reserves as well as the construction and repair of the
electric grid for private utilities, public investor-owned
utilities and co-operative utilities through its infrastructure
services businesses. Mammoth's suite of services and products
include: well completion services, infrastructure services, natural
sand and proppant services, drilling services and other energy
services. For more information, please visit
www.mammothenergy.com.
Contacts:
Mark Layton, CFO
Mammoth Energy Services, Inc
investors@mammothenergy.com
Rick Black / Ken Dennard
Dennard Lascar Investor
Relations
TUSK@dennardlascar.com
Forward-Looking Statements and Cautionary
Statements
This news release (and any oral statements
made regarding the subjects of this release, including on the
conference call announced herein) contains certain statements and
information that may constitute "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of
1934, as amended, and the Private Securities Litigation Reform Act
of 1995. All statements, other than statements of historical facts
that address activities, events or developments that Mammoth
expects, believes or anticipates will or may occur in the future
are forward-looking statements. The words "anticipate," "believe,"
"ensure," "expect," "if," "intend," "plan," "estimate," "project,"
"forecasts," "predict," "outlook," "aim," "will," "could,"
"should," "potential," "would," "may," "probable," "likely" and
similar expressions, and the negative thereof, are intended to
identify forward-looking statements. Without limiting the
generality of the foregoing, forward-looking statements contained
in this press release specifically include statements, estimates
and projections regarding the Company's business outlook and plans,
future financial position, liquidity and capital resources,
operations, performance, acquisitions, returns, capital expenditure
budgets, 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
|
|
March
31,
|
|
December
31,
|
|
|
2024
|
|
2023
|
|
CURRENT
ASSETS
|
|
(in
thousands)
|
|
Cash and cash
equivalents
|
|
$
22,021
|
|
$
16,556
|
|
Restricted
cash
|
|
—
|
|
7,742
|
|
Accounts receivable,
net
|
|
389,520
|
|
447,202
|
|
Inventories
|
|
12,821
|
|
12,653
|
|
Prepaid
expenses
|
|
8,982
|
|
12,181
|
|
Other current
assets
|
|
554
|
|
591
|
|
Total current
assets
|
|
433,898
|
|
496,925
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
109,232
|
|
113,905
|
|
Sand
reserves
|
|
58,530
|
|
58,528
|
|
Operating lease
right-of-use assets
|
|
7,990
|
|
9,551
|
|
Goodwill
|
|
9,214
|
|
9,214
|
|
Deferred income tax
asset
|
|
1,204
|
|
1,844
|
|
Other non-current
assets
|
|
8,002
|
|
8,512
|
|
Total
assets
|
|
$
628,070
|
|
$
698,479
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
Accounts
payable
|
|
$
21,506
|
|
$
27,508
|
|
Accrued expenses and
other current liabilities
|
|
34,117
|
|
86,713
|
|
Accrued expenses and
other current liabilities - related parties
|
|
—
|
|
1,241
|
|
Current operating
lease liability
|
|
5,212
|
|
5,771
|
|
Income taxes
payable
|
|
62,482
|
|
61,320
|
|
Total current
liabilities
|
|
123,317
|
|
182,553
|
|
|
|
|
|
|
Long-term debt from
related parties
|
|
45,630
|
|
42,809
|
|
Deferred income tax
liabilities
|
|
597
|
|
628
|
|
Long-term operating
lease liability
|
|
2,617
|
|
3,534
|
|
Asset retirement
obligation
|
|
4,162
|
|
4,140
|
|
Other long-term
liabilities
|
|
3,483
|
|
4,715
|
|
Total
liabilities
|
|
179,806
|
|
238,379
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Common stock, $0.01
par value, 200,000,000 shares authorized, 48,008,319 and 47,941,652
issued and outstanding at March 31, 2024 and December 31,
2023
|
|
480
|
|
479
|
|
Additional paid in
capital
|
|
539,776
|
|
539,558
|
|
Accumulated
deficit
|
|
(88,128)
|
|
(76,317)
|
|
Accumulated other
comprehensive loss
|
|
(3,864)
|
|
(3,620)
|
|
Total
equity
|
|
448,264
|
|
460,100
|
|
Total liabilities and
equity
|
|
$
628,070
|
|
$
698,479
|
|
MAMMOTH ENERGY
SERVICES, INC.
|
|
CONSOLIDATED STATEMENTS OF
COMPREHENSIVE (LOSS) INCOME
|
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
2024
|
|
2023
|
|
2023
|
|
(in thousands,
except per share amounts)
|
|
REVENUE
|
|
|
Services
revenue
|
$
38,814
|
|
$
103,637
|
|
$
48,087
|
|
Services revenue -
related parties
|
68
|
|
220
|
|
139
|
|
Product
revenue
|
4,307
|
|
12,463
|
|
4,556
|
|
Total
revenue
|
43,189
|
|
116,320
|
|
52,782
|
|
|
|
|
|
|
|
COST AND
EXPENSES
|
|
|
|
|
|
|
Services cost of
revenue (exclusive of depreciation, depletion, amortization and
accretion of $5,874, $11,762, and $6,931, respectively, for the
three months ended March 31, 2024, March 31, 2023 and December 31,
2023)
|
34,483
|
|
80,977
|
|
40,972
|
|
Services cost of
revenue - related parties
|
118
|
|
31
|
|
114
|
|
Product cost of
revenue (exclusive of depreciation, depletion, amortization and
accretion of $1,146, $1,186, and $1,339, respectively, for the
three months ended March 31, 2024, March 31, 2023 and December 31,
2023)
|
5,983
|
|
7,985
|
|
4,692
|
|
Selling, general and
administrative
|
8,782
|
|
8,383
|
|
8,307
|
|
Depreciation,
depletion, amortization and accretion
|
7,021
|
|
12,956
|
|
8,271
|
|
Gains on disposal of
assets, net
|
(1,166)
|
|
(361)
|
|
(2,757)
|
|
Total cost and
expenses
|
55,221
|
|
109,971
|
|
59,599
|
|
Operating (loss)
income
|
(12,032)
|
|
6,349
|
|
(6,817)
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
Interest expense and
financing charges, net
|
(6,637)
|
|
(3,289)
|
|
(5,570)
|
|
Interest expense and
financing charges, net - related parties
|
(1,500)
|
|
—
|
|
(1,241)
|
|
Other income,
net
|
10,143
|
|
8,624
|
|
10,964
|
|
Total other
income
|
2,006
|
|
5,335
|
|
4,153
|
|
(Loss) income before
income taxes
|
(10,026)
|
|
11,684
|
|
(2,664)
|
|
Provision for income
taxes
|
1,785
|
|
3,333
|
|
3,291
|
|
Net (loss)
income
|
$
(11,811)
|
|
$
8,351
|
|
$
(5,955)
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
(LOSS) INCOME
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
(244)
|
|
3
|
|
266
|
|
Comprehensive (loss)
income
|
$
(12,055)
|
|
$
8,354
|
|
$
(5,689)
|
|
|
|
|
|
|
|
Net (loss) income per
share (basic)
|
$
(0.25)
|
|
$
0.18
|
|
$
(0.12)
|
|
Net (loss) income per
share (diluted)
|
$
(0.25)
|
|
$
0.17
|
|
$
(0.12)
|
|
Weighted average number
of shares outstanding (basic)
|
47,964
|
|
47,443
|
|
47,942
|
|
Weighted average number
of shares outstanding (diluted)
|
47,964
|
|
48,002
|
|
47,942
|
|
MAMMOTH ENERGY
SERVICES, INC.
|
|
CONSOLIDATED STATEMENTS OF
CASH FLOWS
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2024
|
|
2023
|
|
(in
thousands)
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net (loss)
income
|
$
(11,811)
|
|
$
8,351
|
|
Adjustments to
reconcile net (loss) income to cash provided by operating
activities:
|
|
|
|
|
Stock based
compensation
|
219
|
|
647
|
|
Depreciation,
depletion, accretion and amortization
|
7,021
|
|
12,956
|
|
Amortization of debt
origination costs
|
372
|
|
188
|
|
Change in provision
for expected credit losses
|
229
|
|
(381)
|
|
Gains on disposal of
assets
|
(1,166)
|
|
(361)
|
|
Deferred income
taxes
|
609
|
|
(27)
|
|
Other
|
111
|
|
174
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts receivable,
net
|
56,623
|
|
(18,534)
|
|
Inventories
|
(168)
|
|
(1,347)
|
|
Prepaid expenses and
other assets
|
3,236
|
|
3,203
|
|
Accounts
payable
|
(5,152)
|
|
8,602
|
|
Accrued expenses and
other liabilities
|
(5,441)
|
|
(13,262)
|
|
Accrued expenses and
other liabilities - related parties
|
1,500
|
|
—
|
|
Income taxes
payable
|
1,167
|
|
3,031
|
|
Net cash provided by
operating activities
|
47,349
|
|
3,240
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Purchases of property
and equipment
|
(4,151)
|
|
(6,036)
|
|
Proceeds from disposal
of property and equipment
|
3,049
|
|
330
|
|
Net cash used in
investing activities
|
(1,102)
|
|
(5,706)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Borrowings on
long-term debt
|
—
|
|
66,700
|
|
Repayments of
long-term debt
|
—
|
|
(65,606)
|
|
Payments on financing
transaction
|
(46,837)
|
|
—
|
|
Payments on
sale-leaseback transaction
|
(1,112)
|
|
(1,214)
|
|
Principal payments on
financing leases and equipment financing notes
|
(503)
|
|
(2,044)
|
|
Debt issuance
costs
|
(37)
|
|
—
|
|
Other
|
—
|
|
(919)
|
|
Net cash used in
financing activities
|
(48,489)
|
|
(3,083)
|
|
Effect of foreign
exchange rate on cash
|
(35)
|
|
(6)
|
|
Net change in cash,
cash equivalents and restricted cash
|
(2,277)
|
|
(5,555)
|
|
Cash, cash equivalents
and restricted cash at beginning of period
|
24,298
|
|
17,282
|
|
Cash, cash equivalents
and restricted cash at end of period
|
$
22,021
|
|
$
11,727
|
|
|
|
|
|
Supplemental disclosure
of cash flow information:
|
|
|
|
|
Cash paid for
interest
|
$
741
|
|
$
3,108
|
|
Cash paid for income
taxes, net of refunds received
|
$
8
|
|
$
(26)
|
|
Supplemental disclosure
of non-cash transactions:
|
|
|
|
|
Interest paid in
kind
|
$
2,741
|
|
$
—
|
|
Purchases of property
and equipment included in accounts payable
|
$
2,500
|
|
$
5,917
|
|
Right-of-use assets
obtained for financing lease liabilities
|
$
106
|
|
$
—
|
|
MAMMOTH ENERGY
SERVICES, INC.
|
|
SEGMENT INCOME
STATEMENTS
|
|
(in
thousands)
|
|
|
Three Months Ended
March 31, 2024
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
|
Revenue from external
customers
|
$
8,159
|
$
25,038
|
$
4,307
|
$
511
|
$
5,174
|
$
—
|
$
43,189
|
|
Intersegment
revenues
|
114
|
—
|
—
|
—
|
1,005
|
(1,119)
|
—
|
|
Total
revenue
|
8,273
|
25,038
|
4,307
|
511
|
6,179
|
(1,119)
|
43,189
|
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
8,338
|
21,533
|
5,840
|
1,050
|
3,823
|
—
|
40,584
|
|
Intersegment cost of
revenues
|
218
|
25
|
—
|
2
|
874
|
(1,119)
|
—
|
|
Total cost of
revenue
|
8,556
|
21,558
|
5,840
|
1,052
|
4,697
|
(1,119)
|
40,584
|
|
Selling, general and
administrative
|
1,073
|
5,617
|
1,031
|
212
|
849
|
—
|
8,782
|
|
Depreciation,
depletion, amortization and accretion
|
3,264
|
718
|
1,146
|
874
|
1,019
|
—
|
7,021
|
|
Losses (gains) on
disposal of assets, net
|
250
|
(483)
|
—
|
2
|
(935)
|
—
|
(1,166)
|
|
Operating (loss)
income
|
(4,870)
|
(2,372)
|
(3,710)
|
(1,629)
|
549
|
—
|
(12,032)
|
|
Interest expense and
financing charges, net
|
569
|
7,099
|
142
|
128
|
199
|
—
|
8,137
|
|
Other (income) expense,
net
|
—
|
(10,258)
|
(1)
|
—
|
116
|
—
|
(10,143)
|
|
(Loss) income before
income taxes
|
$
(5,439)
|
$
787
|
$
(3,851)
|
$
(1,757)
|
$
234
|
$
—
|
$
(10,026)
|
|
Three Months Ended
March 31, 2023
|
Well
Completion
|
Infrastructure
|
Sand
|
Drilling
|
All
Other
|
Eliminations
|
Total
|
|
Revenue from external
customers
|
$
67,179
|
$
28,280
|
$
12,442
|
$
1,355
|
$
7,064
|
$
—
|
$
116,320
|
|
Intersegment
revenues
|
121
|
—
|
25
|
—
|
450
|
(596)
|
—
|
|
Total
revenue
|
67,300
|
28,280
|
12,467
|
1,355
|
7,514
|
(596)
|
116,320
|
|
Cost of revenue,
exclusive of depreciation, depletion, amortization and
accretion
|
52,037
|
22,476
|
7,860
|
1,466
|
5,154
|
—
|
88,993
|
|
Intersegment cost of
revenues
|
478
|
11
|
—
|
14
|
93
|
(596)
|
—
|
|
Total cost of
revenue
|
52,515
|
22,487
|
7,860
|
1,480
|
5,247
|
(596)
|
88,993
|
|
Selling, general and
administrative
|
2,492
|
4,211
|
503
|
146
|
1,031
|
—
|
8,383
|
|
Depreciation,
depletion, amortization and accretion
|
4,817
|
3,374
|
1,187
|
1,229
|
2,349
|
—
|
12,956
|
|
Gains on disposal of
assets, net
|
—
|
(127)
|
(16)
|
—
|
(218)
|
—
|
(361)
|
|
Operating income
(loss)
|
7,476
|
(1,665)
|
2,933
|
(1,500)
|
(895)
|
—
|
6,349
|
|
Interest expense and
financing charges, net
|
929
|
1,845
|
156
|
126
|
233
|
—
|
3,289
|
|
Other (income) expense,
net
|
—
|
(8,808)
|
(2)
|
—
|
186
|
—
|
(8,624)
|
|
Income (loss) before
income taxes
|
$
6,547
|
$
5,298
|
$
2,779
|
$
(1,626)
|
$
(1,314)
|
$
—
|
$
11,684
|
|
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)
|
|
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, 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
|
|
March
31,
|
|
December
31,
|
|
Reconciliation of
net (loss) income to Adjusted EBITDA:
|
2024
|
|
2023
|
|
2023
|
|
Net (loss)
income
|
$
(11,811)
|
|
$
8,351
|
|
$
(5,955)
|
|
Depreciation,
depletion, amortization and accretion expense
|
7,021
|
|
12,956
|
|
8,271
|
|
Gains on disposal of
assets, net
|
(1,166)
|
|
(361)
|
|
(2,757)
|
|
Stock based
compensation
|
219
|
|
647
|
|
219
|
|
Interest expense and
financing charges, net
|
8,137
|
|
3,289
|
|
6,811
|
|
Other income,
net
|
(10,143)
|
|
(8,624)
|
|
(10,964)
|
|
Provision for income
taxes
|
1,785
|
|
3,333
|
|
3,291
|
|
Interest on trade
accounts receivable
|
10,485
|
|
11,112
|
|
11,543
|
|
Adjusted
EBITDA
|
$
4,527
|
|
$
30,703
|
|
$
10,459
|
|
Well Completion
Services
|
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
Reconciliation of
net (loss) income to Adjusted EBITDA:
|
2024
|
|
2023
|
|
2023
|
|
Net (loss)
income
|
$
(5,439)
|
|
$
6,547
|
|
$
(5,158)
|
|
Depreciation and
amortization expense
|
3,264
|
|
4,817
|
|
3,506
|
|
Losses (gains) on
disposal of assets, net
|
250
|
|
—
|
|
(75)
|
|
Stock based
compensation
|
44
|
|
291
|
|
57
|
|
Interest expense and
financing charges, net
|
569
|
|
929
|
|
1,975
|
|
Other expense,
net
|
—
|
|
—
|
|
1
|
|
Adjusted
EBITDA
|
$
(1,312)
|
|
$
12,584
|
|
$
306
|
|
Infrastructure
Services
|
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
Reconciliation of
net (loss) income to Adjusted EBITDA:
|
2024
|
|
2023
|
|
2023
|
|
Net (loss)
income
|
$
(405)
|
|
$
2,452
|
|
$
1,844
|
|
Depreciation and
amortization expense
|
718
|
|
3,374
|
|
1,023
|
|
Gains on disposal of
assets, net
|
(483)
|
|
(127)
|
|
(71)
|
|
Stock based
compensation
|
117
|
|
230
|
|
103
|
|
Interest expense and
financing charges, net
|
7,099
|
|
1,845
|
|
4,394
|
|
Other income,
net
|
(10,258)
|
|
(8,808)
|
|
(10,539)
|
|
Provision for income
taxes
|
1,192
|
|
2,847
|
|
2,804
|
|
Interest on trade
accounts receivable
|
10,485
|
|
11,112
|
|
11,543
|
|
Adjusted
EBITDA
|
$
8,465
|
|
$
12,925
|
|
$
11,101
|
|
Natural
Sand Proppant Services
|
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
Reconciliation of
net (loss) income to Adjusted EBITDA:
|
2024
|
|
2023
|
|
2023
|
|
Net (loss)
income
|
$
(3,851)
|
|
$
2,779
|
|
$
(2,384)
|
|
Depreciation,
depletion, amortization and accretion expense
|
1,146
|
|
1,187
|
|
1,339
|
|
(Gains) losses on
disposal of assets, net
|
—
|
|
(16)
|
|
3
|
|
Stock based
compensation
|
38
|
|
77
|
|
38
|
|
Interest expense and
financing charges, net
|
142
|
|
156
|
|
119
|
|
Other income,
net
|
(1)
|
|
(2)
|
|
(5)
|
|
Adjusted
EBITDA
|
$
(2,526)
|
|
$
4,181
|
|
$
(890)
|
|
Drilling
Services
|
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
Reconciliation of
net loss to Adjusted EBITDA:
|
2024
|
|
2023
|
|
2023
|
|
Net loss
|
$
(1,757)
|
|
$
(1,626)
|
|
$
(147)
|
|
Depreciation
expense
|
874
|
|
1,229
|
|
1,017
|
|
Losses (gains) on
disposal of assets, net
|
2
|
|
—
|
|
(1,577)
|
|
Stock based
compensation
|
5
|
|
8
|
|
5
|
|
Interest expense and
financing charges, net
|
128
|
|
126
|
|
113
|
|
Other income,
net
|
—
|
|
—
|
|
(33)
|
|
Adjusted
EBITDA
|
$
(748)
|
|
$
(263)
|
|
$
(622)
|
|
Other
Services(a)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
Reconciliation of
net loss to Adjusted EBITDA:
|
2024
|
|
2023
|
|
2023
|
|
Net loss
|
$
(359)
|
|
$
(1,801)
|
|
$
(110)
|
|
Depreciation,
amortization and accretion expense
|
1,019
|
|
2,349
|
|
1,386
|
|
Gains on disposal of
assets, net
|
(935)
|
|
(218)
|
|
(1,037)
|
|
Stock based
compensation
|
15
|
|
41
|
|
16
|
|
Interest expense and
financing charges, net
|
199
|
|
233
|
|
210
|
|
Other expense (income),
net
|
116
|
|
186
|
|
(388)
|
|
Provision for income
taxes
|
593
|
|
486
|
|
487
|
|
Adjusted
EBITDA
|
$
648
|
|
$
1,276
|
|
$
564
|
|
|
|
a.
|
Includes results for
Mammoth's aviation, equipment rentals, remote accommodations and
equipment manufacturing and corporate related activities. The
Company's corporate related activities do not generate
revenue.
|
View original
content:https://www.prnewswire.com/news-releases/mammoth-energy-services-inc-announces-first-quarter-2024-operational-and-financial-results-302134195.html
SOURCE Mammoth Energy Services, Inc.