Strong operational performance and profitable
growth driven by a rebound of NLA activity and acquisition of PRT
Offshore.
Revenue of $407 million for the fourth quarter,
up 10% sequentially. Revenue of $1,513 million for the full year,
up 18% year-over-year.
Net loss of $12 million for the fourth quarter
as compared to net loss of $14 million for the third quarter of
2023. Net loss of $23 million for the full year as compared to net
loss of $20 million for 2022.
Adjusted EBITDA1 of $85 million for the fourth
quarter, up 70% sequentially. Adjusted EBITDA margin1 of 21%, up
sequentially from 14%. Adjusted EBITDA of $249 million for the full
year as compared to $206 million for 2022. Adjusted EBITDA margin1
of approximately 16% for both 2023 and 2022.
Provides 2024 revenue and Adjusted EBITDA
margin outlook
Expro Group Holdings N.V. (NYSE: XPRO) (the “Company” or
“Expro”) today reported financial and operational results for the
three months and year ended December 31, 2023.
Fourth Quarter 2023 Financial Highlights
•
Revenue was $407 million compared to
revenue of $370 million in the third quarter of 2023, a sequential
increase of $37 million, or 10%, primarily driven by a rebound of
activity in North and Latin America (“NLA”) and the acquisition of
PRT Offshore in the beginning of the fourth quarter.
•
Net loss for the fourth quarter of 2023
was $12 million, or $0.11 per diluted share, compared to a net loss
of $14 million, or $0.13 per diluted share, for the third quarter
of 2023. Adjusted net income1 for the fourth quarter of 2023 was $7
million, or $0.06 per diluted share, compared to an adjusted net
loss for the third quarter of 2023 of $6 million, or $0.06 per
diluted share. Results for the fourth and third quarter of 2023
include foreign exchange losses of $5 million and $4 million,
respectively, or approximately $0.04 per diluted share, for both
periods.
•
Adjusted EBITDA was $85 million, a
sequential increase of $35 million, or 70%, driven by higher
activity during the fourth quarter and lower unrecoverable costs
within our light well intervention (“LWI”) business. Adjusted
EBITDA margin for the fourth and third quarter of 2023 was 21% and
14%, respectively. Excluding $4 million and $15 million of
unrecoverable LWI-related costs during the three months ended
December 31, 2023 and September 30, 2023, respectively, Adjusted
EBITDA would have been $89 million and $65 million and Adjusted
EBITDA margin would have been 22% and 18%.
The Company suspended vessel-deployed LWI
operations during the third quarter of 2023 following a wire
failure on the main crane of a third-party owned vessel working
with Expro while the crane was suspending the subsea module of
Expro’s vessel-deployed LWI system. We are continuing to work with
the relevant stakeholders and independent experts to assess the
incident. The well control package and lubricator components of
this vessel-deployed LWI system have been safely recovered, but we
have determined not to participate in the recovery of the subsea
module from the seabed. We are continuing to determine the path
forward for our vessel-deployed LWI operations, including what
alternative service delivery options and service partner options
are available to the Company, and the timing and cost (including
potential damage claims) of completing customer work scopes for
which our vessel-deployed LWI system was integral. At this time, we
are not able to assess the timing and potential cost of completing
customer work scopes but do not expect such costs to be material to
Expro’s financial results.
•
Net cash provided by operating activities
for the fourth quarter of 2023 was $33 million compared to net cash
provided by operating activities of $59 million for the third
quarter of 2023. The decrease was primarily due to an increase in
working capital of $60 million, partially offset by an increase in
Adjusted EBITDA of $35 million. Adjusted cash flow from operations1
for the fourth quarter of 2023 was $43 million compared to $64
million for the third quarter of 2023.
1. A non-GAAP measure.
Full Year 2023 Financial Highlights
•
Revenue was $1,513 million for the year
ended December 31, 2023, an increase of $234 million, or 18%,
compared to $1,279 million for the year ended December 31, 2022.
Activity and revenue across all geography-based operating segments
increased during the year ended December 31, 2023, most notably in
Europe and Sub-Saharan Africa (“ESSA”).
•
Net loss was $23 million for the year
ended December 31, 2023, or $0.21 per diluted share, compared to a
net loss of $20 million, or $0.18 per diluted share, for the year
ended December 31, 2022. Adjusted net income for the year ended
December 31, 2023 was $20 million, or $ 0.19 per diluted share,
compared to adjusted net income for the year ended December 31,
2022 of $19 million, or $ 0.18 per diluted share.
•
Adjusted EBITDA increased by $43 million,
or 21%, to $249 million for the year ended December 31, 2023 from
$206 million for the prior year. The increase in Adjusted EBITDA is
primarily attributable to higher revenue and a more favorable
activity mix. Adjusted EBITDA margin was approximately 16% for both
2023 and 2022, respectively. Adjusted EBITDA for the year ended
December 31, 2023 includes unrecoverable LWI-related costs in Asia
Pacific (“APAC”) of $36 million. Adjusted EBITDA for the year ended
December 31, 2022 includes unrecoverable LWI-related costs of $28
million. Excluding unrecoverable LWI-related costs, Adjusted EBITDA
for the years ended December 31, 2023 and 2022 would have been $285
million and $234 million, and Adjusted EBITDA margin would have
been 19% and 18%, respectively.
•
Net cash provided by operating activities
for the year ended December 31, 2023 was $138 million compared to
$80 million for year ended December 31, 2022, primarily due to an
increase in Adjusted EBITDA (as referenced above) and favorable
movement in working capital, partially offset by higher payments
for income taxes. Adjusted cash flow from operations for the year
ended December 31, 2023 was $170 million compared to $115 million
for year ended December 31, 2022.
Michael Jardon, Chief Executive Officer, noted, “Expro has
delivered strong fourth quarter financial results with revenue and
Adjusted EBITDA exceeding our most recent guidance ranges. We begin
2024 in a strong position. As activity is strengthening, we are
continuing to see a positive demand trend for our services and
solutions and believe that the energy services sector and Expro's
business are in the early phase of a multi-year growth cycle.
“Earlier this month we announced that Expro has entered into a
definitive agreement to acquire Coretrax, a technology leader in
performance drilling tools and wellbore cleanup, well integrity and
production optimization solutions. Coretrax has a complementary
offering to Expro with little overlap and will bolster the
portfolio of technology-enabled services and solutions offered
through our Well Construction and Well Intervention & Integrity
product lines, adding significant value to our clients from
innovative technologies that reduce risk and cost, optimize
drilling efficiency, extend the life of existing well stock, and
optimize production.
“We also celebrated 40 years since the launch of our first
subsea test tree system. Since then Expro has remained at the
forefront of subsea landing string technology. Recognizing our
dedication to subsea well access applications, Expro was named
Intervention Champion of the Year at the OWI Global Awards 2023
that was held in November. Our capabilities in this space have also
been bolstered with the recent acquisition of PRT Offshore at the
beginning of the fourth quarter of 2023 and we are already making
significant progress on our integration.
“We built a healthy order book in 2023, capturing strategically
important contract wins. As we look ahead, we are well positioned
to support our customers as activity ramps up across our regions
and product lines. I am very proud of the team of experts
throughout the company and what they have accomplished. We believe
our business is well positioned to be a leading provider of
services and solutions in the international and offshore markets
while delivering on the financial and other objectives of the
company in the years to follow.
“For 2024, we expect improving profitability to drive improved
cash flow generation as we capitalize on tailwinds in our industry.
Based on our strong performance in 2023 and a positive activity
outlook, we currently anticipate generating revenues of between
$1,600 million to $1,700 million in 2024. Adjusted EBITDA in 2024
is expected to be between $325 million and $375 million, and
Adjusted EBITDA margin is expected to be between 20% and 22%.
Full-year guidance assumes our proposed acquisition of Coretrax
will be completed at the beginning of the third quarter. Consistent
with historical patterns, revenue and profitability in the first
quarter of 2024 are expected to be negatively impacted by the
winter season in the Northern Hemisphere and the budget cycles of
our national oil company customers. First quarter revenue is
expected to be within a range of $365 million and $375 million.
First quarter Adjusted EBITDA is expected to be within a range of
$63 million and $73 million and Adjusted EBITDA margin is expected
to be approximately 18%.”
Notable Awards and
Achievements
Expro was named Energy Transition Pioneer of the Year at the OWI
Global Awards 2023, recognizing its commitment to sustainable
energy solutions. This recognition reflects Expro’s proactive
efforts to contribute to a cleaner and more sustainable future. The
company also won Intervention Champion of the Year recognizing
Expro's commitment to Subsea Well Access. In 2023 we achieved over
40 years of Subsea Test Tree Assemblies (“SSTTA”) operations and
more than 3,000 subsea deployments across exploration and
appraisal, completion, and intervention applications, building a
strong reputation and market share that is supported by the
industry’s largest large-bore global SSTTA fleet.
Expro’s Tubular Running Services (“TRS”) business accomplished
an industry milestone in the U.S. Gulf of Mexico by successfully
completing an operator’s well using a fully non-marking completion
running package – a significant achievement in the field.
This tubular running package provides the industry’s only truly
non-marking tubular running solution, which helps preserve well
integrity and extends the life cycle of the well. This was also the
first deployment of the Collar Load Support (CLS™) System for
Stands in the region, in which the performance of the system
exceeded customer expectations. The success of this completion run
was the culmination of extensive planning and testing and is
another example of Expro’s ability to provide solutions and
positive results for the industry’s most complex wells.
Expro has been awarded a Corporate Frame Agreement to deliver
well testing services for Equinor in the Norwegian Continental
Shelf. The four-year contract, with the potential of three two-year
options, builds on Expro’s previous seven-year agreement. The scope
of work includes well flow management and production optimization
services to enhance Equinor’s assets across completion,
intervention, production, and abandonment operations.
Building on the Corporate Frame Agreement, the work scope will
see the delivery of hydraulic intervention well services using
Expro’s innovative CoilHose™ Light Well Circulation System (“LWCS”)
that is designed to provide a more efficient and lower operational
carbon footprint approach to operations. A significant portion of
the contract is directly linked to a demonstrable commitment to a
low carbon plan, allowing Expro to implement its environmental
capabilities with Equinor and further enhance the strength and
depth of this partnership.
In the Middle East and North Africa, Expro’s Automated Bucking
and Catwalk system delivered improved safety and record efficiency
at one of its client’s challenging wells. Expro was contracted to
provide a high quality, low risk tubular running services to its
clients’ onshore fleet of drilling rigs. Marking an operational
first for the triple catwalk in the United Arab Emirates, on the
first deployment of its TRS system, Expro set a record for
instantaneous tripping speed and the second-best performance
overall tripping speed on 18 5/8” tubulars. The overall rate was
more than twice that of the average run in the same field. The
client extended their appreciation to the TRS crew along with the
rig team for concluding a very challenging 18 5/8” job with reduced
safety exposure to personnel and a green safety record.
Finally, in the Asia Pacific region, Expro completed the deepest
deployment of MK VI CoilHose™, coupled with a successful N2 lifting
application in a remote location offshore New Zealand. This marked
the first-ever MK VI CoilHose™ deployment in APAC, reaching an
impressive depth of 8,650 feet (2,637 meters), surpassing depths
achieved globally by 25%. The CoilHose™ solution provided a swift
rig-up time compared to traditional coil tubing, minimizing
planning and operational duration. This streamlined approach not
only reduces safety risks but also lessens the environmental impact
during well interventions.
Segment Results
Unless otherwise noted, the following discussion compares the
quarterly results for the fourth quarter of 2023 to the results for
the third quarter of 2023.
North and Latin America (NLA)
Revenue for the NLA segment was $145 million for the three
months ended December 31, 2023, an increase of $40 million, or 38%,
compared to $105 million for the three months ended September 30,
2023. The increase was primarily due to additional subsea well
access revenue following the acquisition of PRT Offshore at the
beginning of the fourth quarter, higher well flow management
revenue in Mexico, and higher well construction revenue in the U.S.
due to increased customer activity.
Segment EBITDA for the NLA segment was $44 million, or 30% of
revenues, during the three months ended December 31, 2023, compared
to $20 million, or 19% of revenues, during the three months ended
September 30, 2023. The increase of $24 million in Segment EBITDA
was attributable to higher activity and the increase in Segment
EBITDA margin was attributable to a more favorable activity mix
during the three months ended December 31, 2023.
Europe and Sub-Saharan Africa (ESSA)
Revenue for the ESSA segment was $134 million for the three
months ended December 31, 2023, a decrease of $1 million, or 1%,
compared to $135 million for the three months ended September 30,
2023. The decrease in revenues was primarily driven by lower well
flow management revenue in Congo, partially offset by higher well
flow management and subsea well access revenue in Equatorial
Guinea.
Segment EBITDA for the ESSA segment was $41 million, or 31% of
revenues, for the three months ended December 31, 2023, an increase
of $2 million, or 5%, compared to $39, or 29% of revenues, for the
three months ended September 30, 2023. The increase in Segment
EBITDA and Segment EBITDA margin was primarily attributable to a
more favorable activity mix during the three months ended December
31, 2023.
Middle East and North Africa (MENA)
Revenue for the MENA segment was $65 million for the three
months ended December 31, 2023, an increase of $7 million, or 13%,
compared to $58 million for the three months ended September 30,
2023. The increase in revenue was driven by higher well flow
management services revenue in Algeria and the Kingdom of Saudi
Arabia and by higher well construction revenue in Morocco.
Segment EBITDA for the MENA segment was $21 million, or 33% of
revenues, for the three months ended December 31, 2023, an increase
of $4 million, or 26%, compared to $17 million, or 29% of revenues,
for the three months ended September 30, 2023. The increase in
Segment EBITDA and Segment EBITDA margin was primarily due to
higher activity and a more favorable activity mix during the three
months ended December 31, 2023.
Asia Pacific (APAC)
Revenue for the APAC segment was $62 million for the three
months ended December 31, 2023, a decrease of $9 million, or 13%,
compared to $71 million for the three months ended September 30,
2023. The decrease in revenue was primarily due to lower subsea
well access revenue in Australia, where we suspended
vessel-deployed LWI operations, and China, partially offset by
higher subsea well access revenue in Malaysia and well flow
management revenue in Malaysia and Australia.
Segment EBITDA for the APAC segment was $5 million, or 9% of
revenues, for the three months ended December 31, 2023, an increase
of $9 million compared to ($4) million, or (6)% of revenues, for
the three months ended September 30, 2023. The increase in Segment
EBITDA (despite the decrease in revenues) was primarily due to
lower costs within our LWI business during the three months ended
December 31, 2023 compared to the three months ended September 30,
2023. For the three months ended December 31, 2023, APAC Segment
EBITDA includes unrecoverable LWI-related costs of $4 million.
Segment EBITDA for the three months ended September 31, 2023
includes unrecoverable LWI-related costs of $15 million. Excluding
unrecoverable LWI-related costs, Segment EBITDA for the fourth and
third quarter of 2023 would have been $9 million or 15% of revenue
and $11 million or 15% of revenue, respectively.
Other Financial
Information
The Company’s capital expenditures totaled $37 million in the
fourth quarter of 2023 and approximately $122 million for the full
year 2023. Expro plans for capital expenditures in the range of
approximately $130 million to $140 million for 2024.
As of December 31, 2023, Expro’s consolidated cash and cash
equivalents, including restricted cash, totaled $152 million. The
Company had outstanding debt of $20 million as of December 31,
2023. The Company’s total liquidity as of December 31, 2023 was
$299 million. Total liquidity includes $147 million available for
drawdowns as loans under the Company’s revolving credit
facility.
Depreciation and amortization expense was $63 million for the
fourth quarter of 2023 compared to $37 million for the third
quarter of 2023. The increase was primarily due to $19 million of
accelerated depreciation expense related to the subsea module
(“SSM”) of Expro’s vessel-deployed LWI system and related
equipment.
On October 25, 2023, the Company’s Board of Directors (the
“Board”) approved an extension to the stock repurchase program
first approved on June 16, 2022. Pursuant to the extended stock
repurchase program, the Company is authorized to acquire up to $100
million of its outstanding common stock from October 25, 2023
through November 24, 2024. During the year ended December 31, 2023,
under the Stock Repurchase Program we repurchased approximately 1
million shares of our common stock at an average price of $16.70
for a total cost of approximately $20 million, including shares
repurchased prior to the extension of the Stock Repurchase Program.
During the year ended December 31, 2022, we repurchased 1 million
shares at an average price of $11.81 per share, for a total cost of
$13 million under the preceding program.
Expro’s provision for income taxes was $13 million for both the
fourth quarter of 2023 and the prior quarter primarily due to a
similar mix of taxable profits between jurisdictions. The Company’s
effective tax rate on a U.S. generally accepted accounting
principles (“GAAP”) basis for the three months and year ended
December 31, 2022 also reflects liability for taxes in certain
jurisdictions that tax on an other than pre-tax profits basis,
including so-called “deemed profits” regimes.
The financial measures provided that are not presented in
accordance with GAAP are defined and reconciled to their most
directly comparable GAAP measures. Please see “Use of Non-GAAP
Financial Measures” and the reconciliations to the nearest
comparable GAAP measures.
Additionally, downloadable financials are available on the
Investor section of www.expro.com.
Conference Call
The Company will host a conference call to discuss fourth
quarter 2023 results on Wednesday, February 21, 2024, at 12:00 p.m.
Central Time (1:00 p.m. Eastern Time).
Participants may also join the conference call by dialing:
US: +1 (833) 470-1428 International: +1 (929)
526-1599 Access ID: 108879
To listen via live webcast, please visit the Investor section of
www.expro.com.
The fourth quarter 2023 Investor Presentation is available on
the Investor section of www.expro.com.
An audio replay of the webcast will be available on the Investor
section of the Company’s website approximately three hours after
the conclusion of the call and will remain available for a period
of approximately 12 months.
To access the audio replay telephonically:
Dial-In: US +1 (866) 813-9403 or +1 (929)
458-6194 Access ID: 849637 Start Date: February 21, 2024, 1:00 p.m.
CT End Date: March 6, 2024, 10:59 p.m. CT
A transcript of the conference call will be posted to the
Investor relations section of the Company’s website after the
conclusion of the call.
ABOUT EXPRO
Working for clients across the entire well life cycle, Expro is
a leading provider of energy services, offering cost-effective,
innovative solutions and best-in-class safety and service quality.
The Company’s extensive portfolio of capabilities spans well
construction, well flow management, subsea well access, and well
intervention and integrity.
With roots dating to 1938, Expro has more than 8,000 employees
and provides services and solutions to leading energy companies in
both onshore and offshore environments in approximately 60
countries.
For more information, please visit: www.expro.com and connect
with Expro on X (formerly Twitter) @ExproGroup and LinkedIn
@Expro.
Forward Looking
Statements
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. All statements, other
than statements of historical facts, included in this release that
address activities, events or developments that the Company
expects, believes or anticipates will or may occur in the future
are forward-looking statements. Without limiting the generality of
the foregoing, forward-looking statements contained in this release
include statements, estimates and projections regarding the
Company’s future business strategy and prospects for growth, cash
flows and liquidity, financial strategy, budget, projections,
guidance, operating results, environmental, social and governance
goals, targets and initiatives, estimates and projections regarding
the outcome and benefits of the proposed Coretrax acquisition, the
Company’s ability to achieve the anticipated synergies as a result
of the proposed Coretrax acquisition and the timing of the closing
of the proposed Coretrax acquisition. These statements are based on
certain assumptions made by the Company based on management’s
experience, expectations and perception of historical trends,
current conditions, anticipated future developments and other
factors believed to be appropriate. Forward-looking statements are
not guarantees of performance. Although the Company believes the
expectations reflected in its forward-looking statements are
reasonable and are based on reasonable assumptions, no assurance
can be given that these assumptions are accurate or that any of
these expectations will be achieved (in full or at all) or will
prove to have been correct. Moreover, such statements are subject
to a number of assumptions, risks and uncertainties, many of which
are beyond the control of the Company, which may cause actual
results to differ materially from those implied or expressed by the
forward-looking statements. Such assumptions, risks and
uncertainties include the amount, nature and timing of capital
expenditures, the availability and terms of capital, the level of
activity in the oil and gas industry, volatility of oil and gas
prices, unique risks associated with offshore operations (including
the ability to recover, and to the extent necessary, service and/or
economically repair any equipment located on the seabed),
political, economic and regulatory uncertainties in international
operations, the ability to develop new technologies and products,
the ability to protect intellectual property rights, the ability to
employ and retain skilled and qualified workers, the level of
competition in the Company’s industry, global or national health
concerns, including health epidemics, the possibility of a swift
and material decline in global crude oil demand and crude oil
prices for an uncertain period of time, future actions of foreign
oil producers such as Saudi Arabia and Russia, inflationary
pressures, the impact of current and future laws, rulings,
governmental regulations, accounting standards and statements, and
related interpretations, and other guidance.
Such assumptions, risks and uncertainties also include the
factors discussed or referenced in the “Risk Factors” section of
the Company’s Annual Report on Form 10-K for the year ended
December 31, 2023 that will be filed with the SEC, as well as other
risks and uncertainties set forth from time to time in the reports
the Company files with the SEC. Any forward-looking statement
speaks only as of the date on which such statement is made, and the
Company undertakes no obligation to correct or update any
forward-looking statement, whether as a result of new information,
future events, historical practice or otherwise, except as required
by applicable law, and we caution you not to rely on them
unduly.
Use of Non-GAAP Financial
Measures
This press release and the accompanying schedules include the
non-GAAP financial measures of Adjusted EBITDA, Adjusted EBITDA
margin, contribution, contribution margin, support costs, adjusted
cash flow from operations, cash conversion, adjusted net income
(loss), and adjusted net income (loss) per diluted share, which may
be used periodically by management when discussing financial
results with investors and analysts. The accompanying schedules of
this press release provide a reconciliation of these non-GAAP
financial measures to their most directly comparable financial
measure calculated and presented in accordance with GAAP. These
non-GAAP financial measures are presented because management
believes these metrics provide additional information relative to
the performance of the business. These metrics are commonly
employed by the management, financial analysts and investors to
evaluate the operating and financial performance of Expro from
period to period and to compare such performance with the
performance of other publicly traded companies within the industry.
You should not consider Adjusted EBITDA, Adjusted EBITDA margin,
contribution, contribution margin, support costs, adjusted cash
flow from operations, cash conversion, adjusted net income (loss)
and adjusted net income (loss) per diluted share in isolation or as
a substitute for analysis of Expro’s results as reported under
GAAP. Because Adjusted EBITDA, Adjusted EBITDA margin,
contribution, contribution margin, support costs, adjusted cash
flow from operations, cash conversion, adjusted net income (loss)
and adjusted net income (loss) per diluted share may be defined
differently by other companies in the industry, the presentation of
these non-GAAP financial measures may not be comparable to
similarly titled measures of other companies, thereby diminishing
their utility.
Expro defines Adjusted EBITDA as net income (loss) adjusted for
(a) income tax expense (benefit), (b) depreciation and amortization
expense, (c) impairment expense, (d) severance and other expense,
net, (e) stock-based compensation expense, (f) merger and
integration expense, (g) (gain) loss on disposal of assets, (h)
other (income) expense, net, (i) interest and finance (income)
expense, net and (j) foreign exchange (gain) loss. Adjusted EBITDA
margin reflects Adjusted EBITDA expressed as a percentage of
revenue.
Contribution is defined as total revenue less cost of revenue
excluding depreciation and amortization expense, adjusted for
indirect support costs and stock-based compensation expense
included in cost of revenue. Contribution margin is defined as
contribution divided by total revenue, expressed as a percentage.
Support costs is defined as indirect costs attributable to
supporting the activities of the operating segments, research and
engineering expenses and product line management costs included in
cost of revenue, excluding depreciation and amortization expense,
and general and administrative expense, excluding depreciation and
amortization expense, which represent costs of running the
corporate head office and other central functions, including
logistics, sales and marketing and health and safety, and does not
include foreign exchange gains or losses and other non-routine
expenses. Adjusted cash flow from operations is defined as net cash
provided by (used in) operating activities adjusted for cash paid
during the period for interest, net, severance and other expense
and merger and integration expense. Cash conversion is defined as
Adjusted cash flow from operations divided by Adjusted EBITDA.
The Company defines adjusted net income (loss) as net income
(loss) before merger and integration expense, severance and other
expense, stock-based compensation expense, and gain (loss) on
disposal of assets, adjusted for corresponding tax benefits of
these items. The Company defines adjusted net income (loss) per
diluted share as net income (loss) per diluted share before merger
and integration expense, severance and other expense, stock-based
compensation expense, and gain on disposal of assets, adjusted for
corresponding tax benefits of these items, divided by diluted
weighted average common shares.
Please see the accompanying financial tables for a
reconciliation of these non-GAAP measures to their most directly
comparable GAAP measures.
EXPRO GROUP HOLDINGS
N.V.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except per
share data)
(Unaudited)
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2023
2023
2022
2023
2022
Total revenue
$
406,750
$
369,818
$
350,966
$
1,512,764
$
1,279,418
Operating costs and expenses:
Cost of revenue, excluding depreciation
and amortization
(316,875
)
(315,825
)
(277,548
)
(1,241,295
)
(1,057,356
)
General and administrative expense,
excluding depreciation and amortization
(19,346
)
(15,437
)
(10,444
)
(64,254
)
(58,387
)
Depreciation and amortization expense
(62,874
)
(37,414
)
(34,538
)
(172,260
)
(139,767
)
Merger and integration expense
(5,432
)
(817
)
(4,996
)
(9,764
)
(13,620
)
Severance and other expense
(8,901
)
(1,897
)
(2,411
)
(14,388
)
(7,825
)
Total operating cost and expenses
(413,428
)
(371,390
)
(329,937
)
(1,501,961
)
(1,276,955
)
Operating (loss) income
(6,678
)
(1,572
)
21,029
10,803
2,463
Other income (expense), net
4,774
(1,129
)
1,477
1,234
3,149
Interest and finance expense, net
(2,255
)
(373
)
(3,468
)
(3,943
)
(241
)
(Loss) income before taxes and equity
in income of joint ventures
(4,159
)
(3,074
)
19,038
8,094
5,371
Equity in income of joint ventures
5,117
2,495
5,590
12,853
15,731
Income (loss) before income
taxes
958
(579
)
24,628
20,947
21,102
Income tax expense
(13,376
)
(13,307
)
(11,697
)
(44,307
)
(41,247
)
Net (loss) income
$
(12,418
)
$
(13,886
)
$
12,931
$
(23,360
)
$
(20,145
)
Net (loss) income per common
share:
Basic
$
(0.11
)
$
(0.13
)
$
0.12
$
(0.21
)
$
(0.18
)
Diluted
$
(0.11
)
$
(0.13
)
$
0.12
$
(0.21
)
$
(0.18
)
Weighted average common shares
outstanding:
Basic
110,325,863
108,777,429
108,743,078
109,161,453
109,072,761
Diluted
110,325,863
108,777,429
109,348,871
109,161,453
109,072,761
EXPRO GROUP HOLDINGS
N.V.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands)
(Unaudited)
December 31,
December 31,
2023
2022
Assets
Current assets
Cash and cash equivalents
$
151,741
$
214,788
Restricted cash
1,425
3,672
Accounts receivable, net
469,119
419,237
Inventories
143,325
153,718
Assets held for sale
-
2,179
Income tax receivables
27,581
26,938
Other current assets
58,409
44,975
Total current assets
851,600
865,507
Property, plant and equipment, net
513,222
462,316
Investments in joint ventures
66,402
66,038
Intangible assets, net
239,716
229,504
Goodwill
247,687
220,980
Operating lease right-of-use assets
72,310
74,856
Non-current accounts receivable, net
9,768
9,688
Other non-current assets
12,302
8,263
Total assets
$
2,013,007
$
1,937,152
Liabilities and stockholders’
equity
Current liabilities
Accounts payable and accrued
liabilities
$
326,125
$
272,704
Income tax liabilities
45,084
37,151
Finance lease liabilities
1,967
1,047
Operating lease liabilities
17,531
19,057
Other current liabilities
98,144
107,750
Total current liabilities
488,851
437,709
Long-term borrowings
$
20,000
-
Deferred tax liabilities, net
22,706
30,419
Post-retirement benefits
10,445
11,344
Finance lease liabilities
16,410
13,773
Operating lease liabilities
54,976
60,847
Uncertain tax positions
59,544
58,036
Other non-current liabilities
44,202
39,129
Total liabilities
717,134
651,257
Stockholders’ equity:
Common stock
8,062
7,911
Treasury Stock
(64,697
)
(40,870
)
Additional paid-in capital
1,909,323
1,847,078
Accumulated other comprehensive loss
22,318
27,549
Accumulated deficit
(579,133
)
(555,773
)
Total stockholders’ equity
1,295,873
1,285,895
Total liabilities and stockholders’
equity
$
2,013,007
$
1,937,152
EXPRO GROUP HOLDINGS
N.V.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Year Ended
December 31,
2023
2022
Cash flows from operating
activities:
Net loss
$
(23,360
)
$
(20,145
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization expense
172,260
139,767
Equity in income of joint ventures
(12,853
)
(15,731
)
Stock-based compensation expense
19,574
18,486
Changes in fair value of investments
-
1,199
Elimination of unrealized profit on sales
to joint ventures
4,159
-
Deferred taxes
(10,478
)
(1,326
)
Unrealized foreign exchange losses
5,658
6,116
Changes in fair value of contingent
consideration
576
-
Changes in assets and liabilities:
Accounts receivable, net
(34,895
)
(97,758
)
Inventories
10,575
(26,037
)
Other assets
(16,745
)
4,365
Accounts payable and accrued
liabilities
34,600
35,491
Other liabilities
(18,275
)
31,435
Income taxes, net
8,798
10,209
Dividends received from joint ventures
8,329
7,283
Other
(9,614
)
(13,185
)
Net cash provided by operating
activities
138,309
80,169
Cash flows from investing
activities:
Capital expenditures
(122,110
)
(81,904
)
Payment for acquired businesses, net of
cash acquired
(28,707
)
-
Acquisition of technology
-
(7,967
)
Proceeds from disposal of assets
2,013
7,279
Proceeds from sale / maturity of
investments
572
11,386
Net cash used in investing
activities
(148,232
)
(71,206
)
Cash flows from financing
activities:
Cash pledged for collateral deposits
(217
)
(70
)
Payments of loan issuance and other
transaction costs
-
(132
)
Proceeds from long-term borrowings
50,000
-
Repayment of long-term borrowings
(65,096
)
-
Repurchase of common stock
(20,024
)
(12,996
)
Payment of withholding taxes on
stock-based compensation plans
(2,559
)
(4,168
)
Repayment of financed insurance
premium
(9,317
)
(7,245
)
Repayments of finance leases
(2,126
)
(1,001
)
Net cash used in financing
activities
(49,339
)
(25,612
)
Effect of exchange rate changes on cash
and cash equivalents
(6,032
)
(4,738
)
Net decrease to cash and cash
equivalents and restricted cash
(65,294
)
(21,387
)
Cash and cash equivalents and restricted
cash at beginning of year
218,460
239,847
Cash and cash equivalents and
restricted cash at end of year
$
153,166
$
218,460
Supplemental disclosure of cash flow
information:
Cash paid for income taxes net of
refunds
$
(44,268
)
$
(33,171
)
Cash paid for interest, net
(2,177
)
(3,851
)
Change in accounts payable and accrued
expenses related to capital expenditures
(7,926
)
(14,721
)
EXPRO GROUP HOLDINGS
N.V.
SELECTED OPERATING SEGMENT
DATA
(In thousands)
(Unaudited)
Segment Revenue and Segment Revenue as
Percentage of Total Revenue:
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2023
2023
2022
2023
2022
NLA
$
145,490
36
%
$
105,252
28
%
$
131,684
38
%
$
511,800
34
%
$
499,813
39
%
ESSA
133,846
33
%
135,395
37
%
117,344
33
%
520,951
34
%
389,342
30
%
MENA
65,363
16
%
58,057
16
%
55,387
16
%
233,528
15
%
201,495
16
%
APAC
62,051
15
%
71,114
19
%
46,551
13
%
246,485
16
%
188,768
15
%
Total
$
406,750
100
%
$
369,818
100
%
$
350,966
100
%
$
1,512,764
100
%
$
1,279,418
100
%
Segment EBITDA(1), Segment EBITDA
Margin(2), Adjusted EBITDA and Adjusted EBITDA Margin(3):
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2023
2023
2022
2023
2022
NLA
$
44,325
30
%
$
19,967
19
%
$
35,153
27
%
$
132,869
26
%
$
135,236
27
%
ESSA
40,990
31
%
39,268
29
%
30,179
26
%
136,007
26
%
74,681
19
%
MENA
21,271
33
%
16,871
29
%
19,433
35
%
71,201
30
%
63,315
31
%
APAC (5)
5,337
9
%
(4,286
)
(6
)%
3,673
8
%
1,805
1
%
4,850
3
%
111,923
71,820
88,438
341,882
278,082
Corporate costs (4)
(31,894
)
(24,070
)
(23,954
)
(105,855
)
(87,580
)
Equity in income of joint ventures
5,117
2,495
5,590
12,853
15,731
Adjusted EBITDA
$
85,146
21
%
$
50,245
14
%
$
70,074
20
%
$
248,880
16
%
$
206,233
16
%
(1)
Expro evaluates its business segment
operating performance using Segment Revenue, Segment EBITDA and
Segment EBITDA Margin. Expro’s management believes Segment EBITDA
and Segment EBITDA Margin are useful operating performance measures
as they exclude transactions not related to its core operating
activities, corporate costs and certain non-cash items and allows
Expro to meaningfully analyze the trends and performance of its
core operations by segment as well as to make decisions regarding
the allocation of resources to segments.
(2)
Expro defines Segment EBITDA Margin as
Segment EBITDA divided by Segment Revenue, expressed as a
percentage.
(3)
Expro defines Adjusted EBITDA Margin as
Adjusted EBITDA divided by total revenue, expressed as a
percentage.
(4)
Corporate costs include the costs of
running our corporate head office and other central functions that
support the operating segments, including research, engineering and
development, logistics, sales and marketing and health and safety
and are not attributable to a particular operating segment.
(5)
APAC Segment EBITDA, excluding $4 million,
$15 million and $5 million, respectively, of unrecoverable
LWI-related costs during the three months ended December 31, 2023,
September 30, 2023 and December 31, 2022, would have been $9
million, $11 million, and $9 million, respectively, and APAC
Segment EBITDA margin would have been 15%, 15% and 18%,
respectively. APAC Segment EBITDA, excluding $36 million of
unrecoverable LWI-related costs during the year ended December 31,
2023 and $28 million of unrecoverable LWI-related costs during the
year ended December 31, 2022, would have been $38 million and $33
million, respectively, and APAC Segment EBITDA margin would have
been 15% and 17%, respectively.
EXPRO GROUP HOLDINGS
N.V.
REVENUE BY AREAS OF
CAPABILITIES
(In thousands)
(Unaudited)
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2023
2023
2022
2023
2022
Well construction
$
145,279
36
%
$
116,293
31
%
$
137,754
39
%
$
533,556
35
%
$
500,438
39
%
Well management (1)
261,471
64
%
253,525
69
%
213,212
61
%
979,208
65
%
778,980
61
%
Total
$
406,750
100
%
$
369,818
100
%
$
350,966
100
%
$
1,512,764
100
%
$
1,279,418
100
%
(1)
Well management consists of well flow
management, subsea well access, and well intervention and
integrity.
EXPRO GROUP HOLDINGS
N.V.
CONTRIBUTION, CONTRIBUTION
MARGIN AND SUPPORT COSTS
(In thousands)
(Unaudited)
Contribution(1) and Contribution
Margin(2):
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2023
2023
2022
2023
2022
Total revenue
$
406,750
$
369,818
$
350,966
$
1,512,764
$
1,279,418
Cost of revenue, excluding depreciation
and amortization
(316,875
)
(315,825
)
(277,548
)
(1,241,295
)
(1,057,356
)
Indirect costs (included in cost of
revenue)
67,175
62,772
60,324
251,373
238,846
Stock-based compensation expense
1,755
1,789
1,466
6,967
7,658
Direct costs (excluding depreciation and
amortization) (3)
(247,945
)
(251,264
)
(215,758
)
(982,955
)
(810,852
)
Contribution (5)
$
158,805
$
118,554
$
135,208
$
529,809
$
468,566
Contribution margin
39
%
32
%
39
%
35
%
37
%
Support Costs(4):
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2023
2023
2022
2023
2022
Cost of revenue (excluding depreciation
and amortization)
$
316,875
$
315,825
$
277,548
$
1,241,295
$
1,057,356
Direct costs (excluding depreciation and
amortization)
(247,945
)
(251,264
)
(215,758
)
(982,955
)
(810,852
)
Stock-based compensation expense
(1,755
)
(1,789
)
(1,466
)
(6,967
)
(7,658
)
Indirect costs (included in cost of
revenue)
67,175
62,772
60,324
251,373
238,846
General and administrative, (excluding
depreciation and amortization expense, foreign exchange, and other
non-routine costs)
11,782
7,961
10,333
42,531
39,030
Total support costs
$
78,957
$
70,733
$
70,657
$
293,904
$
277,876
Total support costs as a percentage of
revenue
19
%
19
%
20
%
19
%
22
%
(1)
Expro defines Contribution as Total
Revenue less Cost of Revenue, excluding depreciation and
amortization expense, adjusted for indirect support costs and
stock-based compensation expense included in Cost of Revenue.
(2)
Contribution margin is defined as
Contribution as a percentage of Revenue.
(3)
Direct costs include personnel costs,
sub-contractor costs, equipment costs, repairs and maintenance,
facilities, and other costs directly incurred to generate
revenue.
(4)
Support costs includes indirect costs
attributable to support the activities of the operating segments,
research and engineering expenses and product line management costs
included in Cost of revenue, and General and administrative
expenses representing costs of running our corporate head office
and other central functions, including, logistics, sales and
marketing and health and safety and does not include foreign
exchange gains or losses and other non-routine expenses.
(5)
Contribution, excluding $4 million, $15
million and $5 million, respectively, of unrecoverable LWI-related
costs during the three months ended December 31, 2023, September
30, 2023 and December 31, 2022, would have been $163 million, $134
million and $140 million respectively, and Contribution margin
would have been 40%, 36% and 40%, respectively. Contribution,
excluding $36 million of unrecoverable LWI-related costs during the
year ended December 31, 2023 and $28 million of unrecoverable
LWI-related costs during the year ended December 31, 2022, would
have been $566 million and $496 million, respectively, and
Contribution margin would have been 37% and 39%, respectively.
EXPRO GROUP HOLDINGS
N.V.
NON-GAAP FINANCIAL MEASURES
AND RECONCILIATION
(In thousands)
(Unaudited)
Adjusted EBITDA Reconciliation and
Adjusted EBITDA Margin:
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2023
2023
2022
2023
2022
Total revenue
$
406,750
$
369,818
$
350,966
$
1,512,764
$
1,279,418
Net (loss) income
$
(12,418
)
$
(13,886
)
$
12,931
$
(23,360
)
$
(20,145
)
Income tax expense
13,376
13,307
11,697
44,307
41,247
Depreciation and amortization expense
62,874
37,414
34,538
172,260
139,767
Severance and other expense
8,901
1,897
2,411
14,388
7,825
Merger and integration expense
5,432
817
4,996
9,764
13,620
Other (income) expense, net
(4,774
)
1,129
(1,477
)
(1,234
)
(3,149
)
Stock-based compensation expense
4,892
4,934
3,554
19,574
18,486
Foreign exchange loss (gain)
4,608
4,260
(2,044
)
9,238
8,341
Interest and finance expense, net
2,255
373
3,468
3,943
241
Adjusted EBITDA (1)
$
85,146
$
50,245
$
70,074
$
248,880
$
206,233
Adjusted EBITDA margin (1)
21
%
14
%
20
%
16
%
16
%
(1)
Excluding $4 million, $15 million and $5
million, respectively, of unrecoverable LWI-related costs during
the three months ended December 31, 2023, September 30, 2023 and
December 31, 2022, Adjusted EBITDA would have been $89 million, $65
million and $75 million, respectively, and Adjusted EBITDA margin
would have been 22%, 18%, and 21%, respectively. Excluding $36
million of unrecoverable LWI-related costs during the year ended
December 31, 2023 and $28 million of unrecoverable
LWI-related costs during the year ended December 31, 2022, Adjusted
EBITDA Margin would have been $285 million and $234 million,
respectively, and Adjusted EBITDA margin would have been 19% and
18%, respectively
EXPRO GROUP HOLDINGS
N.V.
NON-GAAP FINANCIAL MEASURES
AND RECONCILIATION
(In thousands)
(Unaudited)
Adjusted Cash Flow from Operations
Reconciliation:
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2023
2023
2022
2023
2022
Net cash provided by (used in) operating
activities
$
32,781
$
58,841
$
92,943
$
138,309
$
80,169
Cash paid during the period for interest,
net
721
910
961
2,177
3,851
Cash paid during the period for severance
and other expense
5,525
2,208
697
12,304
3,970
Cash paid during the period for merger and
integration expense
4,389
1,614
4,350
17,403
27,344
Adjusted Cash Flow from
Operations
$
43,416
$
63,573
$
98,951
$
170,193
$
115,334
Adjusted EBITDA
$
85,146
$
50,245
$
70,074
$
248,880
$
206,233
Cash conversion (1)
51
%
127
%
141
%
68
%
56
%
(1)
Expro defines Cash Conversion as Adjusted
Cash Flow from Operations divided by Adjusted EBITDA, expressed as
a percentage.
EXPRO GROUP HOLDINGS
N.V.
NON-GAAP FINANCIAL MEASURES
AND RECONCILIATION
(In thousands, except per
share amounts)
(Unaudited)
Reconciliation of Adjusted Net Income
(Loss) and Adjusted Net Income (Loss) per Diluted Share:
Three Months Ended
Year Ended
December 31,
September 30,
December 31,
December 31,
December 31,
2023
2023
2022
2023
2022
Net (loss) income
$
(12,418
)
$
(13,886
)
$
12,931
$
(23,360
)
$
(20,145
)
Adjustments:
Merger and integration expense
5,432
817
4,996
9,764
13,620
Severance and other expense
8,901
1,897
2,411
14,388
7,825
Stock-based compensation expense
4,892
4,934
3,554
19,574
18,486
Total adjustments, before taxes
19,225
7,648
10,961
43,726
39,931
Tax benefit
-
-
(70
)
(43
)
(524
)
Total adjustments, net of taxes
19,225
7,648
10,891
43,683
39,407
Adjusted net income (loss) attributable
to company
$
6,807
$
(6,238
)
$
23,822
$
20,323
$
19,262
As reported diluted weighted average
common shares outstanding
110,325,863
108,777,429
109,348,871
109,161,453
109,072,761
As reported net loss per diluted share
$
(0.11
)
$
(0.13
)
$
0.12
$
(0.21
)
$
(0.18
)
Adjusted net income (loss) per diluted
share
$
0.06
$
(0.06
)
$
0.22
$
0.19
$
0.18
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240221547118/en/
Chad Stephenson - Director Investor Relations +1 (713)
463-9776 InvestorRelations@expro.com
Grafico Azioni Expro Group Holdings NV (NYSE:XPRO)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Expro Group Holdings NV (NYSE:XPRO)
Storico
Da Gen 2024 a Gen 2025
