Revenue of $383 million, down 6% sequentially
and up 13% year-over-year.
Net loss of $3 million, as compared to net loss
of $12 million for the fourth quarter of 2023 and a net loss of $6
million for the first quarter of 2023. Net loss margin was (1)% for
the first quarter of 2024, compared to (3)% for the fourth quarter
of 2023.
Adjusted EBITDA1 of $67 million, down 20%
sequentially and up 61% year-over-year. Adjusted EBITDA margin1 of
18%, compared to 21% for the fourth quarter of 2023.
Reaffirming full-year 2024 guidance of $1.6 to
$1.7 billion of revenue and $325 to $375 million of Adjusted
EBITDA, supported by the strong first quarter performance, contract
awards, the recently completed PRT Offshore acquisition, and the
pending Coretrax acquisition.
Sixth paragraph, last sentence of the release should read:
Second quarter revenue is expected to reflect approximately 3%
year-on-year growth and sequential growth of 7%, with Adjusted
EBITDA Margin in an expected range of 20% to 21%, or up 200 to 300
basis points year-on-year and sequentially in both cases based on
the mid-point of second quarter guidance (instead of Second quarter
revenue is expected to reflect approximately 20% year-on-year
growth and sequential growth of 8%, with Adjusted EBITDA Margin in
an expected range of 20% to 21%, or up 200 to 300 basis points
year-on-year and sequentially in both cases based on the mid-point
of second quarter guidance).
The updated release reads:
EXPRO GROUP HOLDINGS N.V. ANNOUNCES FIRST
QUARTER 2024 RESULTS
Revenue of $383 million, down 6% sequentially
and up 13% year-over-year.
Net loss of $3 million, as compared to net loss
of $12 million for the fourth quarter of 2023 and a net loss of $6
million for the first quarter of 2023. Net loss margin was (1)% for
the first quarter of 2024, compared to (3)% for the fourth quarter
of 2023.
Adjusted EBITDA1 of $67 million, down 20%
sequentially and up 61% year-over-year. Adjusted EBITDA margin1 of
18%, compared to 21% for the fourth quarter of 2023.
Reaffirming full-year 2024 guidance of $1.6 to
$1.7 billion of revenue and $325 to $375 million of Adjusted
EBITDA, supported by the strong first quarter performance, contract
awards, the recently completed PRT Offshore acquisition, and the
pending Coretrax acquisition.
Expro Group Holdings N.V. (NYSE: XPRO) (the “Company” or
“Expro”) today reported financial and operational results for the
three months ended March 31, 2024.
First Quarter 2024 Highlights
- Revenue was $383 million compared to revenue of $407 million in
the fourth quarter of 2023, a decrease of $24 million, or 6%,
driven by lower activity primarily in the North and Latin America
(“NLA”) and Europe and Sub-Saharan Africa (“ESSA”) segments,
partially offset by higher revenue in the Middle East and North
Africa (“MENA”). Consistent with historical patterns, revenue and
profitability for the three months ended March 31, 2024, was
negatively impacted by the winter season in the Northern Hemisphere
and the budget cycles of our national oil company customers.
- Net loss for the first quarter of 2024 was $3 million, or $0.02
per diluted share, compared to net loss of $12 million, or $0.11
per diluted share, for the fourth quarter of 2023. Net loss margin
(defined as Net income (loss) as a percentage of revenue) was (1)%
for the three months ended March 31, 2024 compared to (3)% for the
three months ended December 31, 2023. Adjusted net income1 for the
first quarter of 2024 was $10 million, or $0.09 per diluted share,
compared to adjusted net income for the fourth quarter of 2023 of
$7 million, or $0.06 per diluted share.
- Adjusted EBITDA was $67 million, a sequential decrease of $18
million, or 20%, primarily attributable to lower revenue and a less
favorable activity mix, primarily in NLA and ESSA segments,
partially offset by increased activity on higher-margin projects in
MENA. Adjusted EBITDA margin for the first quarter of 2024 and the
fourth quarter of 2023 was 18% and 21%, respectively.
- Net cash provided by operating activities for the first quarter
of 2024 was $30 million compared to net cash provided by operating
activities of $33 million for the fourth quarter of 2023, primarily
driven by a sequential decrease in Adjusted EBITDA of $18 million
and non-repeat of dividends received from joint ventures in the
fourth quarter of 2023 of $6 million, partially offset by a
favorable movement in working capital of $21 million compared to
the prior quarter.
Michael Jardon, Chief Executive Officer, noted “Expro has
started 2024 in a strong position delivering solid financial
results for the first quarter, with revenue surpassing expectations
and Adjusted EBITDA consistent with the midpoint of guidance
provided on our fourth quarter of 2023 earnings conference call.
These results are encouraging for the full year 2024 outlook and a
testament to our commitment to deliver excellence and innovation
across all areas of operation.
“Our positive outlook is based on a constructive fundamental
backdrop and increasing global demand for cost effective
technology-enabled services and solutions. While we expect reduced
activity in the US land market for the next several quarters, we
believe international and offshore markets are in the early stages
of a multi-year growth phase and that strong business momentum will
be sustained across Expro’s geo-markets and product lines for at
least the next several years. In the first quarter we captured more
than $230 million of work globally and our backlog remained stable
quarter-over -quarter at approximately $2 billion.
1
A non-GAAP measure.
“In the first quarter, we announced that Expro 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 broaden our 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, improve drilling efficiency, extend the life of existing
well stock, and optimize production. As we near completion of the
acquisition of Coretrax, integration planning is underway, and we
look forward to John Fraser and team joining the Expro family.
“We continue to gain momentum across carbon capture, utilization
and storage (CCUS) with Expro participating in Japan’s first clean
hydrogen production demonstration project. Expro's comprehensive
scope of services will support the project's goal of reducing
carbon emissions while advancing clean energy solutions as we play
our part as a citizen of the world.
“As we look ahead, Expro is well positioned for additional
margin expansions in our drilling and completions levered
businesses, which will drive improved group profitability and
shareholder returns. Based on recent performance, good dialog with
customers and a positive market outlook, we are comfortable
reiterating 2024 guidance for revenues of between $1,600 million
and $1,700 million. 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, with some upside tied to a possible
closing of the transaction a month or two earlier than this
assumption. Second quarter revenue is expected to reflect
approximately 3% year-on-year growth and sequential growth of 7%,
with Adjusted EBITDA Margin in an expected range of 20% to 21%, or
up 200 to 300 basis points year-on-year and sequentially in both
cases based on the mid-point of second quarter guidance.
Notable Awards and
Achievements
In the NLA region, we worked with a major operator to help
optimize critical cementing operations, implementing our Rotating
Plug Launcher to facilitate rotation during cementing and provide
necessary cement competency and zonal isolation. This innovative
solution not only enhanced safety but also standardized operations
across a fleet of active drilling rigs, showcasing our ability to
provide efficient and reliable services.
Expanding our presence in Eastern Europe and the Black Sea, the
ESSA region secured three deepwater contracts in Romania, totaling
more than $10 million. These contracts underscore our technical
expertise and the trust clients place in our capabilities to
deliver advanced technology solutions for their projects.
In the MENA region, Expro secured a significant contract for
cementing accessories in Egypt’s deepwater market, featuring our
wireless cement heads. This contract marks a pivotal step in
promoting hands-free cementing operations globally, enhancing
safety, efficiency, and operational speed.
Furthermore, Eni S.p.A.’s project to develop an onshore
liquefied natural gas pre-treatment facility in Congo is
progressing well, with the team achieving over one million manhours
lost time injury free. This project exemplifies our commitment to
safety and sustainable operations while contributing to the global
energy transition.
Segment Results
Unless otherwise noted, the following discussion compares the
quarterly results for the first quarter of 2024 to the results for
the fourth quarter of 2023.
North and Latin America (NLA)
Revenue for the NLA segment was $130 million for the three
months ended March 31, 2024, a decrease of $15 million, or 10%,
compared to $145 million for the three months ended December 31,
2023. The decrease was primarily due to lower Well Construction
revenue in the United States, Guyana and Mexico, partially offset
by increased Well Intervention & Integrity revenue in the
United States and Brazil and higher Well Flow Management revenue in
Colombia.
Segment EBITDA for the NLA segment was $34 million, or 26% of
revenues, during the three months ended March 31, 2024, a decrease
of $10 million, or 22%, compared to $44 million or 30% of revenues
during the three months ended December 31, 2023. The decrease in
Segment EBITDA and Segment EBITDA margin was attributable to lower
activity and activity mix during the three months ended March 31,
2024.
Europe and Sub-Saharan Africa (ESSA)
Revenue for the ESSA segment was $122 million for the three
months ended March 31, 2024, a decrease of $12 million, or 9%,
compared to $134 million for the three months ended December 31,
2023. The decrease in revenues was primarily driven by lower Well
Flow Management revenue in Congo, lower Subsea Well Access revenue
in the Western and Central Africa, and lower Well Construction
revenue in the UK and Angola, partially offset by higher Well
Intervention & Integrity revenue in the UK and higher Well Flow
Management revenue in Norway and Denmark.
Segment EBITDA for the ESSA segment was $25 million, or 21% of
revenues, for the three months ended March 31, 2024, a decrease of
$16 million, or 39%, compared to $41 million, or 31% of revenues,
for the three months ended December 31, 2023. The decrease in
Segment EBITDA and Segment EBITDA margin was attributable to a
combination of lower activity, activity mix and reduced margin
recognized on our pre-treatment facility project in Congo during
the three months ended March 31, 2024.
Middle East and North Africa (MENA)
Revenue for the MENA segment was $71 million for the three
months ended March 31, 2024, an increase of $6 million, or 9%,
compared to $65 million for the three months ended December 31,
2023. The increase in revenue was driven higher Well Flow
Management revenue in Algeria and Saudi Arabia, partially offset by
lower Well Construction revenue in Morocco.
Segment EBITDA for the MENA segment was $25 million, or 34% of
revenues, for the three months ended March 31, 2024, an increase of
$3 million, or 15%, compared to $21 million, or 32% of revenues,
for the three months ended December 31, 2023. The increase in
Segment EBITDA and Segment EBITDA margin was primarily due to
increased activity on higher-margin projects and a more favorable
activity mix during the three months ended March 31, 2024.
Asia Pacific (APAC)
Revenue for the APAC segment was $60 million for the three
months ended March 31, 2024, a decrease of $2 million, or 4%,
compared to $62 million for the three months ended December 31,
2023. The decrease in revenue was primarily due to lower Well Flow
Management, Well Intervention & Integrity and Subsea Well
Access revenue in Malaysia, offset by higher Subsea Well Access
revenue in China and Australia, and higher Well Flow Management
revenue in Australia and Thailand.
Segment EBITDA for the APAC segment was $11 million, or 18% of
revenues, for the three months ended March 31, 2024, an increase of
$6 million, compared to $5 million, or 9% of revenues, for the
three months ended December 31, 2023. The increase in Segment
EBITDA is attributable primarily to higher activity.
Other Financial
Information
The Company’s capital expenditures totaled $31 million in the
first quarter of 2024, of which approximately 90% were used for the
purchase and manufacture of equipment to directly support
customer-related activities and approximately 10% for other
property, plant and equipment, inclusive of software costs. Expro
plans for capital expenditures in the range of approximately $100
million to $110 million for the remainder of 2024.
As of March 31, 2024, Expro’s consolidated cash and cash
equivalents, including restricted cash, totaled $165 million. The
Company had outstanding long-term borrowings of $40 million as of
March 31, 2024. The Company’s total liquidity as of March 31, 2024
was $291 million. Total liquidity includes $127 million available
for drawdowns as loans under the Company’s revolving credit
facility.
Expro’s provision for income taxes for both the first quarter of
2024 and the fourth quarter of 2023 was approximately $12 million
and $13 million. The Company’s effective tax rate on a U.S.
generally accepted accounting principles (“GAAP”) basis for the
three months ended March 31, 2024, also reflects liability for
taxes in certain jurisdictions that tax on an other than pre-tax
profits basis, including so-called “deemed profits” regimes.
On October 6, 2023, the Company amended and restated its
revolving credit facility pursuant to an amendment and restatement
agreement with DNB Bank ASA, London Branch, as agent, in order to
extend the maturity of the facility for a further 36 months and
increase the total commitments to $250 million, of which $167
million is available for drawdowns as loans and $83 million is
available for letters of credit. The Company has the ability to
increase the commitments to $350 million.
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 first quarter
2024 results on Thursday, April 25, 2024, at 9:00 a.m. Central Time
(10:00 a.m. Eastern Time).
Participants may also join the conference call by dialing:
U.S.: +1 (833) 470-1428
International: +1 (929) 526-1599
Access ID: 673250
To listen via live webcast, please visit the Investor section of
www.expro.com.
The first quarter 2024 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: U.S. +1 (866) 813-9403 or +1 (929)
458-6194
Access ID: 436305
Start Date: April 25, 2024, 10:00 a.m. CT
End Date: May 9, 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 as soon as
practicable 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 what the Company considers to be
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
solutions.
With roots dating to 1938, Expro has more than 8,000 employees
and provides services and solutions to leading exploration and
production 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 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
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 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 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 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, (b) depreciation and amortization expense,
(c) severance and other expense, (d) merger and integration
expense, (e) gain on disposal of assets, (f) other (income)
expense, net, (g) stock-based compensation expense, (h) foreign
exchange (gains) losses and (i) interest and finance (income)
expense, net. Adjusted EBITDA margin reflects Adjusted EBITDA
expressed as a percentage of total 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.
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 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 share
data)
(Unaudited)
Three Months Ended
March 31,
December 31,
March 31,
2024
2023
2023
Total revenue
$
383,489
$
406,750
$
339,279
Operating costs and expenses:
Cost of revenue, excluding depreciation
and amortization expense
(308,487
)
(316,875
)
(289,647
)
General and administrative expense,
excluding depreciation and amortization expense
(19,213
)
(19,346
)
(13,285
)
Depreciation and amortization expense
(40,146
)
(62,874
)
(34,737
)
Merger and integration expense
(2,161
)
(5,432
)
(2,138
)
Severance and other expense
(5,062
)
(8,901
)
(927
)
Total operating cost and expenses
(375,069
)
(413,428
)
(340,734
)
Operating income (loss)
8,420
(6,678
)
(1,455
)
Other income (expense), net
485
4,774
(949
)
Interest and finance expense, net
(3,152
)
(2,255
)
(1,298
)
Income (loss) before taxes and equity
in income of joint ventures
5,753
(4,159
)
(3,702
)
Equity in income of joint ventures
3,858
5,117
2,436
Income (loss) before income
taxes
9,611
958
(1,266
)
Income tax expense
(12,288
)
(13,376
)
(5,085
)
Net loss
$
(2,677
)
$
(12,418
)
$
(6,351
)
Net loss per common share:
Basic and diluted
$
(0.02
)
$
(0.11
)
$
(0.06
)
Weighted average common shares
outstanding:
Basic and diluted
110,176,460
110,325,863
108,854,709
EXPRO GROUP HOLDINGS
N.V.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands)
(Unaudited)
March 31,
December 31,
2024
2023
Assets
Current assets
Cash and cash equivalents
$
163,221
$
151,741
Restricted cash
1,313
1,425
Accounts receivable, net
438,941
469,119
Inventories
164,325
143,325
Income tax receivables
28,968
27,581
Other current assets
65,628
58,409
Total current assets
862,396
851,600
Property, plant and equipment, net
500,331
513,222
Investments in joint ventures
71,001
66,402
Intangible assets, net
229,574
239,716
Goodwill
247,687
247,687
Operating lease right-of-use assets
68,022
72,310
Non-current accounts receivable, net
9,179
9,768
Other non-current assets
12,064
12,302
Total assets
$
2,000,254
$
2,013,007
Liabilities and stockholders’
equity
Current liabilities
Accounts payable and accrued
liabilities
$
299,094
$
326,125
Income tax liabilities
47,688
45,084
Finance lease liabilities
2,012
1,967
Operating lease liabilities
16,885
17,531
Other current liabilities
100,110
98,144
Total current liabilities
465,789
488,851
Long-term borrowings
40,000
20,000
Deferred tax liabilities, net
21,636
22,706
Post-retirement benefits
8,697
10,445
Non-current finance lease liabilities
15,824
16,410
Non-current operating lease
liabilities
50,249
54,976
Uncertain tax positions
59,718
59,544
Other non-current liabilities
44,231
44,202
Total liabilities
706,144
717,134
Common stock
8,102
8,062
Treasury stock
(68,792
)
(64,697
)
Additional paid-in capital
1,914,353
1,909,323
Accumulated other comprehensive income
22,257
22,318
Accumulated deficit
(581,810
)
(579,133
)
Total stockholders’ equity
1,294,110
1,295,873
Total liabilities and stockholders’
equity
$
2,000,254
$
2,013,007
EXPRO GROUP HOLDINGS
N.V.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended March
31,
2024
2023
Cash flows from operating
activities:
Net loss
$
(2,677
)
$
(6,351
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization expense
40,146
34,737
Equity in income of joint ventures
(3,858
)
(2,436
)
Stock-based compensation expense
5,070
4,171
Elimination of unrealized (loss) gain on
sales to joint ventures
(741
)
39
Changes in fair value of contingent
consideration
398
-
Deferred taxes
(1,071
)
(5,225
)
Unrealized foreign exchange
660
(1,753
)
Changes in assets and liabilities:
Accounts receivable, net
29,332
(5,761
)
Inventories
(17,286
)
(2,380
)
Other assets
(7,629
)
(11,320
)
Accounts payable and accrued
liabilities
(14,570
)
5,362
Other liabilities
2,755
11,306
Income taxes, net
1,391
3,929
Other
(1,982
)
(2,995
)
Net cash provided by operating
activities
29,938
21,323
Cash flows from investing
activities:
Capital expenditures
(30,739
)
(28,776
)
Payment for acquisition of business, net
of cash acquired
-
(7,536
)
Net cash used in investing
activities
(30,739
)
(36,312
)
Cash flows from financing
activities:
Release of (cash pledged for) collateral
deposits, net
650
(10
)
Proceeds from borrowings
21,204
-
Acquisition of common stock
-
(10,011
)
Payment of withholding taxes on
stock-based compensation plans
(4,095
)
(2,954
)
Repayment of financed insurance
premium
(2,327
)
(2,899
)
Repayment of finance leases
(541
)
(499
)
Net cash provided by (used in)
financing activities
14,891
(16,373
)
Effect of exchange rate changes on cash
and cash equivalents
(2,722
)
(800
)
Net increase (decrease) to cash and
cash equivalents and restricted cash
11,368
(32,162
)
Cash and cash equivalents and restricted
cash at beginning of period
153,166
218,460
Cash and cash equivalents and
restricted cash at end of period
$
164,534
$
186,298
Supplemental disclosure of cash flow
information:
Cash paid for income taxes, net of
refunds
$
11,956
$
6,381
Cash paid for interest, net
2,910
966
Change in accounts payable and accrued
expenses related to capital expenditures
9,922
3,551
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
March 31,
December 31,
March 31,
2024
2023
2023
NLA
$
130,389
34
%
$
145,490
36
%
$
126,228
37
%
ESSA
121,746
32
%
133,846
33
%
113,648
34
%
MENA
71,494
19
%
65,363
16
%
50,945
15
%
APAC
59,860
15
%
62,051
15
%
48,458
14
%
Total
$
383,489
100
%
$
406,750
100
%
$
339,279
100
%
Segment EBITDA(1), Segment EBITDA
Margin(2), Adjusted EBITDA and Adjusted EBITDA
Margin(3):
Three Months Ended
March 31,
December 31,
March 31,
2024
2023
2023
NLA
$
34,377
26
%
$
44,325
30
%
$
31,874
25
%
ESSA
25,201
21
%
40,990
31
%
20,785
18
%
MENA
24,538
34
%
21,271
33
%
14,568
29
%
APAC
10,786
18
%
5,337
9
%
(2,698
)
(6
)%
94,902
111,923
64,529
Corporate costs(4)
(31,300
)
(31,894
)
(25,081
)
Equity in income of joint ventures
3,858
5,117
2,436
Adjusted EBITDA
$
67,460
18
%
$
85,146
21
%
$
41,884
12
%
(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.
EXPRO GROUP HOLDINGS
N.V.
REVENUE BY AREAS OF
CAPABILITIES AND SELECTED CASH FLOW INFORMATION
(In thousands)
(Unaudited)
Revenue by areas of
capabilities:
Three Months Ended
March 31,
December 31,
March 31,
2024
2023
2023
Well construction
$
120,030
31
%
$
145,279
36
%
$
128,265
38
%
Well management(1)
263,459
69
%
261,471
64
%
211,014
62
%
Total
$
383,489
100
%
$
406,750
100
%
$
339,279
100
%
Supplementary information on specific
amounts included in cash provided by operating activities:
Three Months Ended
March 31,
December 31,
March 31,
2024
2023
2023
Net cash provided by operating
activities
$
29,938
$
32,781
$
21,323
Cash paid for interest, net
2,910
721
966
Cash paid for merger and integration
expense
2,280
4,389
2,572
Cash paid for severance and other
expense
3,148
5,525
2,324
(1)
Well management consists of well flow
management, subsea well access, and well intervention and
integrity.
EXPRO GROUP HOLDINGS
N.V.
GROSS PROFIT, GROSS MARGIN,
CONTRIBUTION, CONTRIBUTION MARGIN AND SUPPORT COSTS
(In thousands)
(Unaudited)
Gross Profit, Contribution(1), Gross
Margin and Contribution Margin(2):
Three Months Ended
March 31,
December 31,
March 31,
2024
2023
2023
Total revenue
$
383,489
$
406,750
$
339,279
Less: Cost of revenue, excluding
depreciation and amortization
(308,487
)
(316,875
)
(289,647
)
Less: Depreciation and amortization
related to cost of revenue
(40,070
)
(62,798
)
(34,657
)
Gross profit
34,932
27,077
14,975
Add: Indirect costs (included in cost of
revenue)
68,434
67,175
64,821
Add: Stock-based compensation expenses
1,646
1,755
1,374
Add: Depreciation and amortization related
to cost of revenue
40,070
62,798
34,657
Contribution
$
145,082
$
158,805
$
115,827
Gross margin
9
%
7
%
4
%
Contribution margin
38
%
39
%
34
%
Support Costs(4):
Three Months Ended
March 31,
December 31,
March 31,
2024
2023
2023
Cost of revenue, excluding depreciation
and amortization expense
308,487
316,875
289,647
Direct costs (excluding depreciation and
amortization expense)
(238,407
)
(247,945
)
(223,452
)
Stock-based compensation expense
(1,646
)
(1,755
)
(1,374
)
Indirect costs (included in cost of
revenue)
68,434
67,175
64,821
General and administrative expense
(excluding depreciation and amortization expense, foreign exchange,
and other non-routine costs)
13,046
11,782
11,500
Total support costs
$
81,480
$
78,957
$
76,321
Total support costs as a percentage of
revenue
21
%
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, excluding depreciation and
amortization expense, 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.
EXPRO GROUP HOLDINGS
N.V.
NON-GAAP FINANCIAL MEASURES
AND RECONCILIATION
(In thousands)
(Unaudited)
Adjusted EBITDA Reconciliation and
Adjusted EBITDA Margin:
Three Months Ended
March 31,
December 31,
March 31,
2024
2023
2023
Total revenue
$
383,489
$
406,750
$
339,279
Net loss
$
(2,677
)
$
(12,418
)
$
(6,351
)
Income tax expense
12,288
13,376
5,085
Depreciation and amortization expense
40,146
62,874
34,737
Severance and other expense
5,062
8,901
927
Merger and integration expense
2,161
5,432
2,138
Other (income) expense, net
(485
)
(4,774
)
949
Stock-based compensation expense
5,070
4,892
4,171
Foreign exchange loss (gain)
2,743
4,608
(1,070
)
Interest and finance expense, net
3,152
2,255
1,298
Adjusted EBITDA
$
67,460
$
85,146
$
41,884
Net loss margin
(1
)%
(3
)%
(2
)%
Adjusted EBITDA margin
18
%
21
%
12
%
EXPRO GROUP HOLDINGS
N.V.
NON-GAAP FINANCIAL MEASURES
AND RECONCILIATION
(In thousands, except per
share amounts)
(Unaudited)
Reconciliation of Adjusted Net
Income:
Three Months Ended
March 31,
December 31,
March 31,
2024
2023
2023
Net loss
$
(2,677
)
$
(12,418
)
$
(6,351
)
Adjustments:
Merger and integration expense
2,161
5,432
2,138
Severance and other expense
5,062
8,901
927
Stock-based compensation expense
5,070
4,892
4,171
Total adjustments, before taxes
12,293
19,225
7,236
Tax benefit
(9
)
-
(11
)
Total adjustments, net of taxes
12,284
19,225
7,225
Adjusted net income
$
9,607
$
6,807
$
874
Reconciliation of Adjusted Net Income
per Diluted Share:
Three Months Ended
March 31,
December 31,
March 31,
2024
2023
2023
Net loss
$
(0.02
)
$
(0.11
)
$
(0.06
)
Adjustments:
Merger and integration expense
0.02
0.05
0.02
Severance and other expense
0.05
0.08
0.01
Stock-based compensation expense
0.05
0.04
0.04
Total adjustments, before taxes
0.11
0.17
0.07
Tax benefit
(0.00
)
-
(0.00
)
Total adjustments, net of taxes
0.11
0.17
0.07
Adjusted net income
$
0.09
$
0.06
$
0.01
As reported diluted weighted average
common shares outstanding
110,176,460
110,325,863
108,854,709
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240425958054/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
