ProFrac Holding Corp. Reports 2022 Fourth Quarter and Full Year Financial and Operational Results
ProFrac Holding Corp. (NASDAQ: ACDC) reported strong financial results for Q4 and FY 2022, achieving total revenue of $2.4 billion, a 216% year-over-year increase. Net income rose to $342.7 million, recovering from a loss of ($43.5) million in 2021. Adjusted EBITDA, excluding Flotek, surged 520% to $835.5 million. Q4 revenue was $794.1 million, up 14% sequentially, although net income declined 17% to $116 million. The company closed several acquisitions, including Producers Service Holdings. Challenges include lower commodity prices affecting operational efficiency in 2023.
- Total revenue increased 216% year-over-year to $2.4 billion.
- Net income improved to $342.7 million from a loss of ($43.5) million the previous year.
- Adjusted EBITDA (excluding Flotek) grew 520% to $835.5 million.
- Acquisitions closed in Q4 included US Well Services and Rev Energy Holdings.
- Net income for Q4 declined 17% sequentially to $116 million.
- Operating cash flow decreased 8% in Q4 compared to the previous quarter.
- Pricing levels have remained steady but are impacted by lower commodity prices.
WILLOW PARK, Texas, March 21, 2023 /PRNewswire/ -- ProFrac Holding Corp. (NASDAQ: ACDC) ("ProFrac", or the "Company") today announced financial and operational results for its fourth quarter and full year ended December 31, 2022.
Full Year 2022 Results
- Total revenue of
$2.4 billion , up216% year-over-year - Net income totaled
$342.7 million compared to a net loss of ($43.5) million in the previous year - Adjusted EBITDA(1) excluding Flotek increased approximately
520% year-over-year to$835.5 million - Adjusted EBITDA per active fleet(2) excluding Flotek was
$27.9 million on 29.9 average active fleets during the year - Full year results include the consolidation of Flotek results which contributed
$37.1 million in revenue excluding intercompany eliminations, and ($24.3) million in Adjusted EBITDA
Fourth Quarter 2022 Results and Recent Highlights
- Total revenue grew approximately
14% sequentially to$794.1 million over 2022 third quarter revenue - Net income declined approximately
17% sequentially to$116 million - Adjusted EBITDA(1) excluding Flotek increased approximately
2% sequentially to$269.2 million - Annualized Adjusted EBITDA per fleet(2) excluding Flotek was
$29.9 million on 36 average active fleets during the quarter - Fourth quarter results include the consolidation of Flotek results which contributed
$15.9 million in revenue excluding intercompany eliminations, and ($5.8) million in Adjusted EBITDA - In the fourth quarter of 2022, the Company successfully closed on its acquisitions of US Well Services, the Eagle Ford sand mining operations of Monarch Silica, and Rev Energy Holdings
- In the first quarter of 2023, the Company upsized the term loan credit facility by
$320 million and closed on its acquisitions of Producers Service Holdings and Performance Proppants
Matt Wilks, ProFrac's Executive Chairman, stated, "I am extremely pleased with our company's commitment and hard work that continues to generate improved operational efficiencies and financial growth as we scale the business. We believe our vertically integrated business model positions ProFrac to reduce market volatility and deliver more consistent profitability throughout the cycle."
Ladd Wilks, ProFrac's Chief Executive Officer, added, "We are incredibly proud of our team's performance in the fourth quarter growing revenue by
Full Year 2022 Financial Results
For the year ended December 31, 2022, consolidated revenue grew
For the year ended December 31, 2022, the Company's average active fleet count was 29.9 fleets compared to 14 fleets in 2021.
For the year ended December 31, 2022, selling, general, and administrative costs were
For the year ended December 31, 2022, net income totaled
Adjusted EBITDA increased
Operating cash flow grew
Fourth Quarter 2022 Financial Results
For the fourth quarter of 2022, consolidated revenues totaled
The Company's average active fleet count for the fourth quarter was 36 fleets compared to 31 fleets in the prior quarter.
Selling, general, and administrative costs were
Net income for the fourth quarter declined
In the fourth quarter, Adjusted EBITDA increased
Operating cash flow was
Outlook
Lower commodity prices have impacted our customers' business over the last several months. Pricing levels have remained steady through February, but the Company will continue to assess the market dynamics. In response to the sharp reduction in gas prices, the Company has seen a less efficient calendar develop over the course of the first quarter of 2023. The less efficient calendar combined with the seasonal winter weather impacts is expected to slightly reduce the Company's efficiencies in the first quarter of 2023 compared to the fourth quarter of 2022.
The startup of operations at the Lamesa mine along with the acquisition of Monarch Silica, both in December, should allow the Company to operate approximately five mines during the first quarter of 2023. This should serve to increase the number of fully integrated fleets and materials sales. The acquisition of Performance Proppants in late February will result in the Company exiting the quarter with a total of eight operating mines.
The Company expects to enhance profit per fleet as it further integrates materials into its operating fleets, however Adjusted EBITDA per fleet will also be impacted by inefficiencies and fleet pricing trends in the market.
Business Segment Information
The Stimulation Services segment generated revenues of
The Proppant Production segment generated revenues of
The Manufacturing segment generated revenues of
Our Other Business Activities generated revenues of
Capital Expenditures and Capital Allocation
Capital expenditures were
For 2023, the Company expects capital expenditures to be in line with 2022. The Company has budgeted approximately
Balance Sheet and Liquidity
Total gross debt outstanding as of December 31, 2022 was
Total cash and cash equivalents as of December 31, 2022, was
As of December 31, 2022, and excluding amounts attributable to Flotek, the Company had
Subsequent to year end, the Company closed on its acquisition of Performance Proppants for
Footnotes
(1) Adjusted EBITDA is a financial measure not presented in accordance with generally accepted accounting principles ("GAAP") (a "Non-GAAP Financial Measure"). Please see "Non-GAAP Financial Measures" at the end of this news release.
(2) Adjusted EBITDA per fleet is a Non-GAAP Financial Measure. Please see "Non-GAAP Financial Measures" at the end of this news release.
Conference Call
ProFrac has scheduled a conference call on Tuesday, March 21, 2023 at 11:30 a.m. Eastern time / 10:30 a.m. Central time. Please dial 412-902-0030 and ask for the ProFrac Holding Corp. call at least 10 minutes prior to the start time of the call, or listen to the call live over the Internet by logging on to the website at the address https://ir.pfholdingscorp.com/news-events/ir-calendar. A telephonic replay of the conference call will be available through March 28, 2023 and may be accessed by calling 201-612-7415 using passcode 13735078#. A webcast archive will also be available at the link above shortly after the call and will be accessible for approximately 90 days.
About ProFrac Holding Corp.
ProFrac Holding Corp. is a technology-focused, vertically integrated energy services company providing well stimulation services, proppants production and other complementary products and services to oil and gas companies engaged in the exploration and production ("E&P") of unconventional oil and natural gas resources throughout the United States. Founded in 2016, ProFrac was built to be the go-to service provider for E&P companies' most demanding hydraulic fracturing needs. ProFrac is focused on employing new technologies to significantly reduce "greenhouse gas" emissions and increase efficiency in what has historically been an emissions-intensive component of the unconventional E&P development process. For more information, please visit the ProFrac's website at www.pfholdingscorp.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release may be considered "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. In some cases, the reader can identify forward-looking statements by words such as "may," "should," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," or similar words. Forward-looking statements relate to future events or the Company's future financial or operating performance. These forward-looking statements include, among other things, statements regarding: the Company's strategies and plans for growth; the Company's positioning, resources, capabilities, and expectations for future performance; market and industry expectations; the anticipated benefits of the Company's acquisitions of U.S. Well Services, the Eagle Ford Sand mining operations of Monarch Silica, Rev Energy Holdings, Producers Services Holdings and Performance Proppants; the Company's estimates with respect to the profitability and utilization of its electric, conventional and dual fleets; the Company's currently expected guidance regarding its first quarter 2023 results of operations; the Company's currently expected guidance regarding its full year 2022 capital expenditures and capital allocation; statements regarding the availability of funds under the Company's credit facilities; the Company's anticipated timing for operationalizing its new electric fleets and its sand mines; the amount of capital available to the Company in future periods; any financial or other information based upon or otherwise incorporating judgments or estimates relating to future performance, events or expectations; any estimates and forecasts of financial and other performance metrics; and the Company's outlook and financial and other guidance. Such forward-looking statements are based upon assumptions made by the Company as of the date hereof and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the ability to achieve the anticipated benefits of the acquisitions of U.S. Well Services, the Eagle Ford sand mining operations of Monarch Silica, Rev Energy Holdings, Producers Services Holdings and Performance Proppants, including risks relating to integrating acquired assets and personnel; the failure to operationalize the Company's new fleets and sand mines in a timely manner or at all; the Company's ability to deploy capital in a manner that furthers the Company's growth strategy, as well as the Company's general ability to execute its business plans; industry conditions, including fluctuations in supply, demand and prices for the Company's products and services; global and regional economic and financial conditions; the effectiveness of the Company's risk management strategies; the transition to becoming a public company; and other risks and uncertainties set forth in the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in the Company's filings with the Securities and Exchange Commission ("SEC"), which are available on the SEC's website at www.sec.gov.
Forward-looking statements are also subject to the risks and other issues described below under "Non-GAAP Financial Measures," which could cause actual results to differ materially from current expectations included in the Company's forward-looking statements included in this press release. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward looking statements will be achieved, including without limitation any expectations about the Company's operational and financial performance or achievements through and including 2023. There may be additional risks about which the Company is presently unaware or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. The reader should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Company anticipates that subsequent events and developments will cause its assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, it expressly disclaims any duty to update these forward-looking statements, except as otherwise required by law.
Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDA per fleet are non-GAAP financial measures and should not be considered as substitutes for net income (loss) or any other performance measure derived in accordance with GAAP or as an alternative to net cash provided by operating activities as a measure of our profitability or liquidity. Adjusted EBITDA and Adjusted EBITDA per fleet are supplemental measures utilized by our management and other users of our financial statements such as investors, commercial banks, research analysts and others, to assess our financial performance because they allow us to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization) and items outside the control of our management team (such as income tax rates).
We view Adjusted EBITDA and Adjusted EBITDA per fleet as important indicators of performance. We define Adjusted EBITDA as our net income (loss), before (i) interest expense, net, (ii) income tax provision, (iii) depreciation, depletion and amortization, (iv) loss on disposal of assets, (v) stock-based compensation, and (vi) other unusual or non-recurring charges, such as costs and stock compensation expense related to our initial public offering, non-recurring supply commitment charges, certain credit losses, loss on extinguishment of debt and gain on investment. We define Adjusted EBITDA per fleet for a particular period as Adjusted EBITDA calculated as a daily average of active fleets during period.
We believe that our presentation of Adjusted EBITDA and Adjusted EBITDA per fleet will provide useful information to investors in assessing our financial condition and results of operations. In particular, we believe Adjusted EBITDA per fleet allows investors to compare the performance of our fleets across comparable periods and against the fleets of our competitors who may have different capital structures, which may make a fleet-for-fleet comparison more difficult. Net income (loss) is the GAAP measure most directly comparable to Adjusted EBITDA, and net income (loss) per fleet is the GAAP measure most directly comparable to Adjusted EBITDA per fleet. Adjusted EBITDA should not be considered as an alternative to net income (loss), and Adjusted EBITDA per fleet should not be considered as an alternative to net income (loss) per fleet. Adjusted EBITDA and Adjusted EBITDA per fleet have important limitations as analytical tools because they exclude some but not all items that affect the most directly comparable GAAP financial measure. Because Adjusted EBITDA and Adjusted EBITDA per fleet may be defined differently by other companies in our industry, our definition of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
The presentation of non-GAAP financial measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP. The following tables present a reconciliation of the non-GAAP financial measures of Adjusted EBITDA and Adjusted EBITDA per fleet to the most directly comparable GAAP financial measure for the periods indicated.
-Tables to Follow-
ProFrac Holding Corp. (NasdaqGS: ACDC) | |||||||||||||||||||
Consolidated Statements of Operations | |||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||
Dec. 31 | Sep. 30 | Dec. 31 | Sep. 30 | Dec. 31 | Dec. 31 | ||||||||||||||
(In millions) | 2022 | 2022(1) | 2021 | 2021 | 2022(1) | 2021 | |||||||||||||
Revenues | $ | 794.1 | $ | 696.7 | $ | 248.0 | $ | 195.9 | $ | 2,425.6 | $ | 768.4 | |||||||
Operating costs and expenses: | |||||||||||||||||||
Cost of revenues, exclusive of depreciation, depletion and amortization | 471.0 | 392.0 | 180.9 | 144.2 | 1,438.7 | 570.1 | |||||||||||||
Selling, general, and administrative | 74.1 | 64.5 | 19.0 | 17.2 | 243.1 | 64.2 | |||||||||||||
Depreciation, depletion and amortization | 89.2 | 69.1 | 35.1 | 35.2 | 267.3 | 140.7 | |||||||||||||
Acquisition related expenses | 25.9 | 5.8 | - | - | 48.8 | - | |||||||||||||
Other operating (income) expenses, net | 8.7 | 0.6 | 1.1 | 6.3 | 15.3 | 11.4 | |||||||||||||
Total operating costs and expenses | 668.9 | 532.0 | 236.1 | 202.9 | 2,013.2 | 786.4 | |||||||||||||
Operating income (loss) | 125.2 | 164.7 | 11.9 | (7.0) | 412.4 | (18.0) | |||||||||||||
Other (expense) income: | |||||||||||||||||||
Interest expense, net | (20.5) | (16.3) | (6.7) | (6.9) | (59.5) | (25.8) | |||||||||||||
Loss on extinguishment of debt | (0.3) | (0.2) | (0.5) | - | (17.6) | (0.5) | |||||||||||||
Other (expense) income, net | 8.3 | (1.0) | 0.4 | - | 16.5 | 0.6 | |||||||||||||
Income (loss) before income tax provision | 112.7 | 147.2 | 5.1 | (13.9) | 351.8 | (43.7) | |||||||||||||
Income tax (provision) benefit | 3.3 | (7.9) | - | (0.2) | (9.1) | 0.2 | |||||||||||||
Net income (loss) | $ | 116.0 | $ | 139.3 | $ | 5.1 | $ | (14.1) | $ | 342.7 | $ | (43.5) | |||||||
Less: net (income) loss attributable to ProFrac Predecessor | - | - | (6.1) | 14.0 | (73.6) | 42.4 | |||||||||||||
Less: net loss attributable to noncontrolling interests | 8.3 | 11.8 | 1.0 | 0.1 | 28.4 | 1.1 | |||||||||||||
Less: net income attributable to redeemable noncontrolling interests | (83.4) | (107.1) | - | - | (206.0) | - | |||||||||||||
Net income attributable to ProFrac Holding Corp. | $ | 40.9 | $ | 44.0 | $ | - | $ | - | $ | 91.5 | $ | - | |||||||
(1) | During the fourth quarter of 2022, the Company identified and corrected immaterial errors related to the recognition and classification of certain repairs and maintenance expenses in the first three quarters of 2022. |
ProFrac Holding Corp. (NasdaqGS: ACDC) | ||||||||
Consolidated Balance Sheet | ||||||||
Dec. 31 | Dec. 31 | |||||||
(In millions) | 2022 | 2021 | ||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 35.1 | $ | 5.4 | ||||
Accounts receivable, net | 535.5 | 161.6 | ||||||
Accounts receivable—related party | 2.1 | 4.5 | ||||||
Inventories | 249.5 | 74.0 | ||||||
Prepaid expenses and other current assets | 43.2 | 6.2 | ||||||
Total current assets | 865.4 | 251.7 | ||||||
Property, plant, and equipment, net | 1,396.4 | 363.7 | ||||||
Operating lease right-of-use assets | 112.9 | - | ||||||
Goodwill | 240.5 | - | ||||||
Intangible assets, net | 203.1 | 27.8 | ||||||
Investments | 58.6 | 4.2 | ||||||
Deferred tax assets | 0.4 | - | ||||||
Other assets | 56.3 | 17.2 | ||||||
Total assets | 2,933.6 | 664.6 | ||||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS' AND | ||||||||
Current liabilities: | ||||||||
Accounts payable | 339.4 | 136.7 | ||||||
Accounts payable—related party | 24.0 | 21.3 | ||||||
Accrued expenses | 115.4 | 22.5 | ||||||
Current portion of long-term debt | 127.6 | 31.8 | ||||||
Current portion of operating lease liabilities | 36.0 | - | ||||||
Other current liabilities | 25.7 | 34.4 | ||||||
Total current liabilities | 668.1 | 246.7 | ||||||
Long-term debt | 735.0 | 235.1 | ||||||
Long-term debt—related party | 62.8 | 34.7 | ||||||
Operating lease liabilities | 81.0 | - | ||||||
Other liabilities | 36.0 | - | ||||||
Total liabilities | 1,582.9 | 516.5 | ||||||
Redeemable noncontrolling interest | 2,462.9 | - | ||||||
Members' equity | - | 147.0 | ||||||
Preferred stock | - | - | ||||||
Class A Common Stock | 0.5 | - | ||||||
Class B Common Stock | 1.0 | - | ||||||
Additional paid-in capital | - | - | ||||||
Accumulated deficit | (1,185.9) | - | ||||||
Accumulated other comprehensive income | 0.1 | 0.1 | ||||||
Total stockholders' and members' (deficit) equity attributable to ProFrac Holding Corp. | (1,184.3) | 147.1 | ||||||
Noncontrolling interests | 72.1 | 1.0 | ||||||
Total stockholders' and members' (deficit) equity | (1,112.2) | 148.1 | ||||||
Total liabilities, redeemable noncontrolling interest, and stockholders' and members' (deficit) equity | $ | 2,933.6 | $ | 664.6 | ||||
ProFrac Holding Corp. (NasdaqGS: ACDC) | ||||||||||||||||||||||||
Consolidated Statements of Cash Flow | ||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||||||
Dec. 31 | Sep. 30 | Dec. 31 | Dec. 31 | |||||||||||||||||||||
(In millions) | 2022 | 2022(1) | 2022(1) | 2021 | ||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||
Net income (loss) | $ | 116.0 | $ | 139.3 | $ | 342.7 | $ | (43.5) | ||||||||||||||||
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||||||||||||||||||||||||
Depreciation, depletion and amortization | 89.2 | 69.1 | 267.3 | 140.7 | ||||||||||||||||||||
Stock-based compensation | 14.1 | 12.9 | 67.4 | - | ||||||||||||||||||||
Loss on disposal of assets, net | (0.5) | 0.6 | 2.1 | 9.8 | ||||||||||||||||||||
Non-cash loss on extinguishment of debt | 0.2 | 0.3 | 10.7 | 0.5 | ||||||||||||||||||||
Amortization of debt issuance costs | 2.0 | 2.0 | 6.7 | 2.2 | ||||||||||||||||||||
Bad debt expense, net of recoveries | - | - | - | - | ||||||||||||||||||||
Provision for inventory obsolescence | - | - | - | - | ||||||||||||||||||||
Deferred tax expense | 1.3 | 1.4 | 3.7 | - | ||||||||||||||||||||
Unrealized gain on investments, net | (7.9) | - | (16.4) | - | ||||||||||||||||||||
Other non-cash items, net | 1.9 | - | 1.9 | (1.3) | ||||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||
Accounts receivable | 17.2 | (46.1) | (203.3) | (89.6) | ||||||||||||||||||||
Inventories | (8.3) | (39.4) | (105.1) | (16.1) | ||||||||||||||||||||
Prepaid expenses and other assets | (7.8) | (11.5) | (26.4) | 3.8 | ||||||||||||||||||||
Accounts payable | 36.6 | 19.1 | 42.9 | 31.6 | ||||||||||||||||||||
Accrued expenses | (80.5) | 28.3 | 30.1 | 6.1 | ||||||||||||||||||||
Deferred revenues and other liabilities | (14.9) | (3.9) | (9.1) | (0.3) | ||||||||||||||||||||
Net cash provided by operating activities | 158.6 | 172.1 | 415.2 | 43.9 | ||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||
Investment in property, plant & equipment | (116.7) | (123.4) | (356.2) | (87.4) | ||||||||||||||||||||
Proceeds from sale of assets | 1.7 | 0.5 | 48.3 | 17.5 | ||||||||||||||||||||
Acquisitions, net of cash acquired | (285.8) | (97.7) | (640.7) | (4.3) | ||||||||||||||||||||
Investment in preferred shares of BPC | - | - | (47.2) | (4.2) | ||||||||||||||||||||
Initial investment in Flotek | - | - | (10.0) | - | ||||||||||||||||||||
Other investments | 2.0 | (20.9) | (22.8) | - | ||||||||||||||||||||
Net cash used in investing activities | (398.8) | (241.5) | (1,028.6) | (78.4) | ||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 0.1 | 231.3 | 818.9 | 160.3 | ||||||||||||||||||||
Repayments of long-term debt | (15.9) | (18.0) | (531.7) | (146.9) | ||||||||||||||||||||
Borrowings from revolving credit agreements | 314.2 | 56.5 | 567.9 | 63.5 | ||||||||||||||||||||
Repayments to revolving credit agreements | (80.0) | (199.8) | (402.7) | (35.5) | ||||||||||||||||||||
Payment of debt issuance costs | (5.3) | (9.7) | (38.6) | (2.0) | ||||||||||||||||||||
Member contribution | - | - | 5.0 | - | ||||||||||||||||||||
Proceeds from issuance of common stock | - | - | 329.1 | - | ||||||||||||||||||||
Payment of THRC related equity | - | - | (72.9) | - | ||||||||||||||||||||
Payment of common stock issuance costs | - | - | (27.4) | - | ||||||||||||||||||||
Other | (1.7) | - | (1.7) | (2.5) | ||||||||||||||||||||
Net cash provided by financing activities | 211.4 | 60.3 | 645.9 | 36.9 | ||||||||||||||||||||
Net increase in cash, cash equivalents, and restricted cash | $ | (28.8) | $ | (9.1) | $ | 32.5 | $ | 2.4 | ||||||||||||||||
Cash, cash equivalents, and restricted cash beginning of period | 66.7 | 75.8 | 5.4 | 3.0 | ||||||||||||||||||||
Cash, cash equivalents, and restricted cash end of period | $ | 37.9 | $ | 66.7 | $ | 37.9 | $ | 5.4 | ||||||||||||||||
(1) | During the fourth quarter of 2022, the Company identified and corrected immaterial errors related to the recognition and classification of certain repairs and maintenance expenses in the first three quarters of 2022. |
ProFrac Holding Corp. (NasdaqGS: ACDC) | ||||||||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted EBITDA | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
Dec. 31 | Sep. 30 | Dec. 31 | Sep. 30 | Dec. 31 | Dec. 31 | |||||||||||||||
(In millions) | 2022 | 2022(1) | 2021 | 2021 | 2022(1) | 2021 | ||||||||||||||
Net income (loss) | $ | 116.0 | $ | 139.3 | $ | 5.1 | $ | (14.1) | $ | 342.7 | $ | (43.5) | ||||||||
Interest expense, net | 20.5 | 16.3 | 6.7 | 6.9 | 59.5 | 25.8 | ||||||||||||||
Depreciation, depletion and amortization | 89.2 | 69.1 | 35.1 | 35.2 | 267.3 | 140.7 | ||||||||||||||
Income tax benefit (provision) | (3.3) | 7.9 | - | 0.2 | 9.1 | (0.2) | ||||||||||||||
Loss on disposal of assets, net | (0.5) | 0.7 | 2.3 | 3.4 | 2.1 | 9.8 | ||||||||||||||
Loss on extinguishment of debt | 0.3 | 0.2 | 0.5 | - | 17.6 | 0.5 | ||||||||||||||
Accruals for legal contingencies | 7.3 | - | - | - | 11.3 | - | ||||||||||||||
Stock-based compensation | 3.9 | 2.7 | - | - | 8.1 | - | ||||||||||||||
Stock-based compensation related to deemed contributions | 10.2 | 10.2 | - | - | 59.3 | - | ||||||||||||||
Bad debt expense, net of recoveries | 1.9 | - | (3.7) | 2.6 | 1.9 | (1.2) | ||||||||||||||
Loss on foreign currency transactions | - | (0.1) | 0.1 | 0.1 | - | 0.2 | ||||||||||||||
Reorganization costs | - | - | 1.8 | 0.2 | - | 2.1 | ||||||||||||||
Acquisition related expenses | 25.9 | 5.8 | - | - | 48.8 | - | ||||||||||||||
Severance charges | - | - | 0.5 | - | - | 0.5 | ||||||||||||||
Supply commitment charges | - | - | - | - | - | - | ||||||||||||||
Unrealized gain on investments, net | (8.0) | - | - | - | (16.5) | - | ||||||||||||||
Adjusted EBITDA | $ | 263.4 | $ | 252.1 | $ | 48.4 | $ | 34.5 | $ | 811.2 | $ | 134.7 | ||||||||
(1) | During the fourth quarter of 2022, the Company identified and corrected immaterial errors related to the recognition and classification of certain repairs and maintenance expenses in the first three quarters of 2022. |
ProFrac Holding Corp. (NasdaqGS: ACDC) | ||||||||||||||||||||
Reconciliation of Net Income (Loss) to Pro Forma Adjusted EBITDA excluding Flotek | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
Dec. 31 | Sep. 30 | Dec. 31 | Sep. 30 | Dec. 31 | Dec. 31 | |||||||||||||||
(In millions except average active fleets and annualization factor) | 2022 | 2022(1) | 2021 | 2021 | 2022(1) | 2021 | ||||||||||||||
Net income (loss) | $ | 116.0 | $ | 139.3 | $ | 5.1 | $ | (14.1) | $ | 342.7 | $ | (43.5) | ||||||||
Interest expense, net | 20.5 | 16.3 | 6.7 | 6.9 | 59.5 | 25.8 | ||||||||||||||
Depreciation, depletion and amortization | 89.2 | 69.1 | 35.1 | 35.2 | 267.3 | 140.7 | ||||||||||||||
Income tax benefit (provision) | (3.3) | 7.9 | - | 0.2 | 9.1 | (0.2) | ||||||||||||||
Loss on disposal of assets, net | (0.5) | 0.7 | 2.3 | 3.4 | 2.1 | 9.8 | ||||||||||||||
Loss on extinguishment of debt | 0.3 | 0.2 | 0.5 | - | 17.6 | 0.5 | ||||||||||||||
Accruals for legal contingencies | 7.3 | - | - | - | 11.3 | - | ||||||||||||||
Stock-based compensation | 3.9 | 2.7 | - | - | 8.1 | - | ||||||||||||||
Stock-based compensation related to deemed contributions | 10.2 | 10.2 | - | - | 59.3 | - | ||||||||||||||
Bad debt expense, net of recoveries | 1.9 | - | (3.7) | 2.6 | 1.9 | (1.2) | ||||||||||||||
Loss on foreign currency transactions | - | (0.1) | 0.1 | 0.1 | - | 0.2 | ||||||||||||||
Reorganization costs | - | - | 1.8 | 0.2 | - | 2.1 | ||||||||||||||
Acquisition related expenses | 25.9 | 5.8 | - | - | 48.8 | - | ||||||||||||||
Severance charges | - | - | 0.5 | - | - | 0.5 | ||||||||||||||
Supply commitment charges | - | - | - | - | - | - | ||||||||||||||
Unrealized gain on investments, net | (8.0) | - | - | - | (16.5) | - | ||||||||||||||
Total adjusted EBITDA for reportable segments | $ | 263.4 | $ | 252.1 | $ | 48.4 | $ | 34.5 | $ | 811.2 | $ | 134.7 | ||||||||
Less: other business activities operating results | 5.8 | 11.1 | - | - | 24.3 | - | ||||||||||||||
Adjusted EBITDA excluding other business activities | 269.2 | 263.2 | 48.4 | 34.5 | 835.5 | 134.7 | ||||||||||||||
Average active fleets | 36.0 | 31.0 | 16.0 | 14.7 | 29.9 | 14.0 | ||||||||||||||
Adjusted EBITDA excluding other business activities per average active fleet | 7.5 | 8.5 | 3.0 | 2.3 | 27.9 | 9.6 | ||||||||||||||
Annualization factor | 4.0 | 4.0 | 4.0 | 4.0 | 1.0 | 1.0 | ||||||||||||||
Annualized adjusted EBITDA excluding other business activities per average | $ | 29.9 | $ | 34.0 | $ | 12.1 | $ | 9.4 | $ | 27.9 | $ | 9.6 | ||||||||
(1) | During the fourth quarter of 2022, the Company identified and corrected immaterial errors related to the recognition and classification of certain repairs and maintenance expenses in the first three quarters of 2022. |
ProFrac Holding Corp. (NasdaqGS: ACDC) | ||||||||||||||||||||
Segment Information | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
Dec. 31 | Sep. 30 | Dec. 31 | Sep. 30 | Dec. 31 | Dec. 31 | |||||||||||||||
(In millions) | 2022 | 2022(1) | 2021 | 2021 | 2022(1) | 2021 | ||||||||||||||
Revenues | ||||||||||||||||||||
Stimulation services | $ | 767.4 | $ | 668.6 | $ | 242.4 | $ | 190.7 | $ | 2,348.7 | $ | 745.4 | ||||||||
Proppant production | 35.4 | 24.6 | 7.5 | 6.4 | 90.0 | 27.2 | ||||||||||||||
Manufacturing | 51.1 | 48.7 | 25.6 | 19.9 | 166.7 | 76.4 | ||||||||||||||
Other | 49.6 | 46.9 | - | - | 111.8 | - | ||||||||||||||
Total segments | 903.5 | 788.8 | 275.5 | 217.0 | 2,717.2 | 849.0 | ||||||||||||||
Eliminations | (109.4) | (92.1) | (27.5) | (21.1) | (291.6) | (80.6) | ||||||||||||||
Total revenues | $ | 794.1 | $ | 696.7 | $ | 248.0 | $ | 195.9 | $ | 2,425.6 | $ | 768.4 | ||||||||
Adjusted EBITDA | ||||||||||||||||||||
Stimulation services | $ | 252.1 | $ | 249.5 | $ | 47.6 | $ | 31.6 | $ | 771.4 | $ | 122.6 | ||||||||
Proppant production | 20.2 | 9.2 | 2.6 | 2.4 | 49.8 | 10.7 | ||||||||||||||
Manufacturing | (3.1) | 4.5 | (1.8) | 0.5 | 14.3 | 1.4 | ||||||||||||||
Other | (5.8) | (11.1) | - | - | (24.3) | - | ||||||||||||||
Adjusted EBITDA for reportable segments | $ | 263.4 | $ | 252.1 | $ | 48.4 | $ | 34.5 | $ | 811.2 | $ | 134.7 | ||||||||
(1) | During the fourth quarter of 2022, the Company identified and corrected immaterial errors related to the recognition and classification of certain repairs and maintenance expenses in the first three quarters of 2022. |
ProFrac Holding Corp. (NasdaqGS: ACDC) | ||||||||
Net Debt | ||||||||
Dec. 31 | Sep. 30 | |||||||
(In millions) | 2022 | 2022 | ||||||
Current portion of long-term debt | $ | 127.6 | $ | 60.5 | ||||
Long-term debt | 735.0 | 484.3 | ||||||
Long-term debt—related party | 62.8 | - | ||||||
Total debt | 925.4 | 544.8 | ||||||
Plus: Unamortized debt issuance costs | 34.0 | 23.2 | ||||||
Total gross debt | 959.4 | 568.0 | ||||||
Less: Cash and cash equivalents | (35.1) | (64.7) | ||||||
Net debt | $ | 924.3 | $ | 503.3 | ||||
ProFrac Holding Corp. (NasdaqGS: ACDC) | ||||||||
Net Debt excluding Other Business Activities | ||||||||
Dec. 31 | Sep. 30 | |||||||
(In millions) | 2022 | 2022 | ||||||
Current portion of long-term debt | $ | 112.4 | $ | 44.9 | ||||
Long-term debt | 732.2 | 481.3 | ||||||
Long-term debt - related party | 62.8 | - | ||||||
Total debt | 907.4 | 526.2 | ||||||
Plus: Unamortized debt issuance costs | 34.0 | 23.2 | ||||||
Total gross debt | 941.4 | 549.4 | ||||||
Less: Cash and cash equivalents | (22.8) | (56.2) | ||||||
Net debt | $ | 918.6 | $ | 493.2 | ||||
Contacts: | ProFrac Holding Corp. |
Lance Turner – Chief Financial Officer | |
Bryan Wheatly – Director, Investor Relations | |
Dennard Lascar Investor Relations | |
Ken Dennard / Rick Black | |
View original content:https://www.prnewswire.com/news-releases/profrac-holding-corp-reports-2022-fourth-quarter-and-full-year-financial-and-operational-results-301776935.html
SOURCE ProFrac Holding Corp.
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