ProFrac Holding Corp. Reports Second Quarter 2024 Results
ProFrac Holding Corp. (NASDAQ: ACDC) reported its Q2 2024 financial results. Total revenue was $579.4 million, slightly down from Q1. The company reported a net loss of $65.6 million, compared to a net income of $3.0 million in Q1. Adjusted EBITDA decreased to $135.6 million from $159.7 million in Q1. Despite market challenges, ProFrac achieved records for average pump hours per fleet and efficiencies. The company's free cash flow grew 187% sequentially to $74.0 million. ProFrac continues to upgrade its fleet with electric and Tier 4 dual fuel systems, with 70% of active fleets now including e-fleet or natural gas-capable equipment. The company expects pricing to remain steady in the Stimulation Services segment and anticipates a gradual recovery in the Proppant Production segment after initial declines.
ProFrac Holding Corp. (NASDAQ: ACDC) ha riportato i risultati finanziari del secondo trimestre del 2024. Il fatturato totale è stato di 579,4 milioni di dollari, leggermente inferiore a quello del primo trimestre. L'azienda ha registrato una perdita netta di 65,6 milioni di dollari, rispetto a un utile netto di 3,0 milioni di dollari nel primo trimestre. L'EBITDA corretto è diminuito a 135,6 milioni di dollari rispetto a 159,7 milioni di dollari nel primo trimestre. Nonostante le sfide del mercato, ProFrac ha raggiunto record per il numero medio di ore di pompaggio per flotta e per l'efficienza. Il flusso di cassa libero dell'azienda è cresciuto del 187% su base sequenziale, arrivando a 74,0 milioni di dollari. ProFrac continua ad aggiornare la propria flotta con sistemi elettrici e a doppio carburante di Categoria 4, con il 70% delle flotte attive che ora include attrezzature compatibili con e-flotta o a gas naturale. L'azienda prevede che i prezzi rimarranno stabili nel segmento dei Servizi di Stimolazione e anticipa una graduale ripresa nel segmento della Produzione di Proppant dopo i cali iniziali.
ProFrac Holding Corp. (NASDAQ: ACDC) reportó sus resultados financieros del segundo trimestre de 2024. Los ingresos totales fueron de 579,4 millones de dólares, ligeramente por debajo del primer trimestre. La compañía reportó una pérdida neta de 65,6 millones de dólares, en comparación con una ganancia neta de 3,0 millones de dólares en el primer trimestre. El EBITDA ajustado disminuyó a 135,6 millones de dólares desde 159,7 millones de dólares en el primer trimestre. A pesar de los desafíos del mercado, ProFrac logró récords de horas promedio de bombeo por flota y eficiencias. El flujo de caja libre creció un 187% secuencialmente hasta alcanzar los 74,0 millones de dólares. ProFrac continúa mejorando su flota con sistemas eléctricos y de combustible dual de nivel 4, con el 70% de las flotas activas que ahora incluyen equipos compatibles con e-flota o de gas natural. La compañía espera que los precios se mantengan estables en el segmento de Servicios de Estimulación y anticipa una recuperación gradual en el segmento de Producción de Proppant tras las caídas iniciales.
ProFrac 홀딩스 Corp. (NASDAQ: ACDC)가 2024년 2분기 재무 결과를 발표했습니다. 총 수익은 5억 7940만 달러로, 1분기보다 약간 감소했습니다. 회사는 6560만 달러의 순손실을 기록했으며, 이는 1분기 300만 달러의 순이익과 비교됩니다. 조정된 EBITDA는 1분기 1억 5970만 달러에서 1억 3560만 달러로 감소했습니다. 시장의 어려움에도 불구하고 ProFrac는 평균 펌프 작동 시간과 효율성에서 기록을 세웠습니다. 회사의 자유 현금 흐름은 순차적으로 187% 증가하여 7400만 달러에 이르렀습니다. ProFrac는 전기 및 Tier 4 이중 연료 시스템으로 플릿을 개선하고 있으며, 활성 플릿의 70%가 이제 e-플릿 또는 천연 가스 사용 가능한 장비를 포함하고 있습니다. 회사는 자극 서비스 부문에서 가격이 안정적으로 유지될 것으로 예상하며, 초기 하락 이후 프로판트 생산 부문에서 점진적인 회복이 있을 것으로 기대하고 있습니다.
ProFrac Holding Corp. (NASDAQ: ACDC) a publié ses résultats financiers pour le deuxième trimestre de 2024. Le chiffre d'affaires total s'élevait à 579,4 millions de dollars, légèrement en baisse par rapport au premier trimestre. L'entreprise a enregistré une perte nette de 65,6 millions de dollars, comparativement à un revenu net de 3,0 millions de dollars au premier trimestre. L'EBITDA ajusté a diminué à 135,6 millions de dollars, contre 159,7 millions de dollars au premier trimestre. Malgré les défis du marché, ProFrac a atteint des records en termes d'heures de pompage moyennes par flotte et d'efficacité. Le flux de trésorerie disponible de l'entreprise a augmenté de 187 % séquentiellement, atteignant 74,0 millions de dollars. ProFrac continue d'améliorer sa flotte avec des systèmes électriques et à double carburant de catégorie 4, 70 % des flottes actives comprenant désormais des équipements compatibles avec e-flotte ou au gaz naturel. L'entreprise prévoit que les prix resteront stables dans le segment des services de stimulation et anticipe une reprise progressive dans le segment de la production de proppant après des baisses initiales.
ProFrac Holding Corp. (NASDAQ: ACDC) hat seine Finanzergebnisse für das 2. Quartal 2024 veröffentlicht. Der Gesamtumsatz betrug 579,4 Millionen USD, was einen leichten Rückgang im Vergleich zum 1. Quartal darstellt. Das Unternehmen meldete einen Nettoverlust von 65,6 Millionen USD, im Vergleich zu einem Nettogewinn von 3,0 Millionen USD im 1. Quartal. Das bereinigte EBITDA fiel auf 135,6 Millionen USD von 159,7 Millionen USD im 1. Quartal. Trotz der Herausforderungen auf dem Markt erzielte ProFrac Rekorde für die durchschnittlichen Pumpstunden pro Flotte und die Effizienz. Der freie Cashflow des Unternehmens wuchs sequenziell um 187% auf 74,0 Millionen USD. ProFrac aktualisiert weiterhin seine Flotte mit elektrischen und Tier 4-Dual-Fuelsystemen, wobei 70 % der aktiven Flotten jetzt e-Flotte oder erdgastaugliche Ausrüstung enthalten. Das Unternehmen erwartet, dass die Preise im Segment der Stimulationsdienstleistungen stabil bleiben, und geht von einer schrittweisen Erholung im Proppantproduktionssegment nach anfänglichen Rückgängen aus.
- Free cash flow grew 187% sequentially to $74.0 million
- Net cash provided by operating activities increased 43% sequentially to $113.5 million
- Achieved records for average pump hours per fleet and efficiencies
- 70% of active fleets include e-fleet or natural gas-capable equipment
- Anticipates opportunities to further improve profitability per fleet
- Net loss of $65.6 million compared to net income of $3.0 million in Q1
- Total revenue decreased slightly to $579.4 million from $581.5 million in Q1
- Adjusted EBITDA decreased to $135.6 million from $159.7 million in Q1
- Recognized a goodwill impairment of $67.7 million in the Proppant Production segment
- Net debt increased by approximately $153.6 million from Q1
ProFrac's Q2 2024 results reveal a challenging market environment. Revenue slightly decreased to
Despite headwinds, there are positive signs:
- Free cash flow grew
187% to$74 million - Net cash from operations increased
43% to$113.5 million - Record pump hours per fleet achieved
The oilfield services market is facing headwinds, as evidenced by ProFrac's results. The reduction in drilling and completion activity, especially in natural gas regions, signals a broader industry slowdown. This aligns with recent trends of operators focusing on capital discipline and free cash flow generation.
ProFrac's strategy to upgrade its fleet with electric and Tier 4 dual fuel systems is forward-thinking, addressing the industry's shift towards cleaner technologies. With
ProFrac's investment in advanced technologies, particularly electric and Tier 4 dual fuel systems, demonstrates a strategic alignment with industry trends. These technologies offer improved efficiency and reduced emissions, which are increasingly important factors for operators facing environmental scrutiny.
The company's ability to achieve record pump hours per fleet suggests successful implementation of these technologies, potentially providing a competitive advantage. However, the
Second Quarter 2024 Results
- Total revenue was
$579.4 million $581.5 million - Net loss was
$65.6 million $3.0 million - Adjusted EBITDA(1) was
$135.6 million $159.7 million - Net cash provided by operating activities grew approximately
43% sequentially over the first quarter to$113.5 million - Capital expenditures totaled
$61.9 million - Free cash flow(2) grew
187% sequentially to$74.0 million
Matt Wilks, ProFrac's Executive Chairman, stated, "Overall, the market for our services has been challenged as operators have reduced drilling and completion activity, particularly in natural gas regions. This market softness in the second quarter led to sequentially lower results in the quarter.
"However, despite these challenges, we are proud to report that our team achieved records for average pump hours per fleet and efficiencies during the second quarter, while concurrently upgrading our fleet with additional electric and Tier 4 dual fuel systems. Today, we continue to field new inbound requests for additional deployments with the highest demand being for electric and Tier 4 dual fuel or DGB technologies. Strengthened by our vertical integration, we continue to build scale and position ProFrac to deliver long-term value for our stakeholders," concluded Mr. Wilks.
Outlook
In the Stimulation Services segment, the Company anticipates pricing will remain steady. Because of our superior cost structure and operating leverage, we continue to see opportunities to further improve profitability per fleet. We also continue to field new inbound requests for additional integrated fleet deployments with the highest demand for electric and Tier 4 dual fuel or DGB technologies. Today,
In the Proppant Production segment, the Company currently anticipates that total volumes and pricing will continue to decline followed by a gradual recovery. However, the Company expects that the reduction in profitability will be partially offset by operating cost reductions and the idling of one underperforming mine in the Haynesville region.
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
Cash capital expenditures totaled
For the full year 2024, the Company expects to incur capital expenditures closer to the lower end of previously provided guidance. Maintenance-related capital expenditures are expected to be approximately
Balance Sheet and Liquidity
Total debt outstanding as of June 30, 2024 and March 31, 2024 was
Total cash and cash equivalents as of June 30, 2024 was
As of June 30, 2024 the Company had
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) | Free Cash Flow is a Non-GAAP Financial Measure. Please see "Non-GAAP Financial Measures" at the end of this news release |
(3) | Net Debt 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 Thursday, August 8, 2024 at 11:00 a.m. Eastern time / 10:00 a.m. Central time. Please dial 862-298-0702 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 August 15, 2024 and may be accessed by calling 201-612-7415 and using passcode 13748137#. 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 and innovation-driven energy services holding company providing hydraulic fracturing, proppant production, related completion services and complementary products and services to leading upstream oil and natural gas companies engaged in the exploration and production ("E&P") of North American unconventional oil and natural gas resources. The Company operates through three business segments: stimulation services, proppant production and manufacturing. For more information, please visit 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. Forward-looking statements may be accompanied 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; customer, market and industry demand and expectations; the Company's expectations about the contributions of AST; the Company's expectations about price fluctuations, and macroeconomic conditions impacting the industry; competitive conditions in the industry; the Company's ability to increase the utilization of its mining assets and lower our mining costs per ton; success of the Company's ongoing strategic initiatives; the Company's intention to increase the number of fully integrated fleets; the Company's currently expected guidance regarding its 2024 financial and operational results; the Company's ability to earn its targeted rates of return; pricing of the Company's services in light of the prevailing market conditions; the Company's currently expected guidance regarding its planned capital expenditures; statements regarding the Company's liquidity and debt obligations; the Company's anticipated timing for operationalizing and amount of contribution from its fleets and its sand mines; expectations regarding pricing per ton range; the amount of capital that may be 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 Company's acquisitions, mining operations, and vertical integration strategy, including risks and costs relating to integrating acquired assets and personnel; risks that the Company's actions intended to achieve its 2024 financial and operational guidance will be insufficient to achieve that guidance, either alone or in combination with external market, industry or other factors; the failure to operationalize or utilize to the extent anticipated the Company's 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; the risk that the Company may need more capital than it currently projects or that capital expenditures could increase beyond current expectations; industry conditions, including fluctuations in supply, demand and prices for the Company's products and services and for natural gas; global and regional economic and financial conditions, including as they may be affected by hostilities in the
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 2024. 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, Free Cash Flow and Net Debt are non-GAAP financial measures and should not be considered as a substitute for net income (loss) or net cash from operating activities, respectively, 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 Free Cash Flow 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. We believe Adjusted EBITDA is an important supplemental measure because it allows 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 believe Free Cash Flow is an important supplemental liquidity measure of the cash that is available (if any), after purchases of property and equipment, for operational expenses, investment in our business, and to make acquisitions, and Free Cash Flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash in excess of our capital investments in property and equipment. We believe Net Debt is an important supplemental measure of indebtedness for management and investors because it provides a more complete understanding of our leverage position and borrowing capacity after factoring in cash and cash equivalents.
We view Adjusted EBITDA and Free Cash Flow as important indicators of performance. We define Adjusted EBITDA as our net income (loss), before (i) interest expense, net, (ii) income taxes, (iii) depreciation, depletion and amortization, (iv) loss or gain on disposal of assets, (v) stock-based compensation, and (vi) other charges, such as certain credit losses, (gain) or loss on extinguishment of debt, unrealized loss (or gain) on investments, acquisition and integration expenses, litigation expenses and accruals for legal contingencies, acquisition earnout adjustments, severance charges, goodwill impairments, gains on insurance recoveries, and impairments of long-lived assets. We define Free Cash Flow as net cash provided by or (used in) operating activities less investment in property, plant and equipment plus proceeds from sale of assets.
We believe that our presentation of Adjusted EBITDA and Free Cash Flow will provide useful information to investors in assessing our financial condition and results of operations.
Net income (loss) is the GAAP measure most directly comparable to Adjusted EBITDA. Adjusted EBITDA should not be considered as an alternative to net income (loss). Adjusted EBITDA has important limitations as an analytical tool because it excludes some but not all items that affect the most directly comparable GAAP financial measure. Because Adjusted EBITDA may be defined differently by other companies in our industry, our definition of this non-GAAP financial measure may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
Net cash provided by operating activities is the GAAP measure most directly comparable to Free Cash Flow. Free Cash Flow should not be considered as an alternative to net cash provided by operating activities. Free Cash Flow has important limitations as an analytical tool including that Free Cash Flow does not reflect the cash requirements necessary to service our indebtedness and Free Cash Flow is not a reliable measure for actual cash available to the Company at any one time. Because Free Cash Flow may be defined differently by other companies in our industry, our definition of this Non-GAAP Financial Measure may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
Net Debt is defined as total debt plus unamortized debt discounts, premiums, and issuance costs less cash and cash equivalents. Total debt is the GAAP measure most directly comparable to Net Debt. Net Debt should not be considered as an alternative to total debt. Net Debt has important limitations as a measure of indebtedness because it does not represent the total amount of indebtedness of the Company.
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 Free Cash Flow to the most directly comparable GAAP financial measure for the periods indicated.
Contacts: | ProFrac Holding Corp. |
Austin Harbour – Chief Financial Officer | |
Michael | |
Dennard Lascar Investor Relations | |
Ken Dennard / Rick Black | |
- Tables to Follow-
ProFrac Holding Corp. (NasdaqGS: ACDC) | ||||||||||||||||
Consolidated Balance Sheets (unaudited) | ||||||||||||||||
June 30 | December 31 | |||||||||||||||
(In millions) | 2024 | 2023 | ||||||||||||||
ASSETS | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 24.0 | $ | 25.3 | ||||||||||||
Accounts receivable, net | 378.8 | 346.1 | ||||||||||||||
Accounts receivable — related party, net | 11.6 | 6.8 | ||||||||||||||
Inventories | 258.8 | 236.6 | ||||||||||||||
Prepaid expenses and other current assets | 30.7 | 23.3 | ||||||||||||||
Total current assets | 703.9 | 638.1 | ||||||||||||||
Property, plant, and equipment, net | 1,866.7 | 1,779.0 | ||||||||||||||
Operating lease right-of-use assets, net | 103.2 | 87.2 | ||||||||||||||
Goodwill | 300.8 | 325.9 | ||||||||||||||
Intangible assets, net | 160.4 | 173.5 | ||||||||||||||
Investments | 7.5 | 28.9 | ||||||||||||||
Deferred tax assets | 0.1 | 0.3 | ||||||||||||||
Other assets | 20.9 | 37.8 | ||||||||||||||
Total assets | $ | 3,163.5 | $ | 3,070.7 | ||||||||||||
LIABILITIES, MEZZANINE EQUITY, AND STOCKHOLDERS' EQUITY | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 334.5 | $ | 319.0 | ||||||||||||
Accounts payable — related party | 16.7 | 21.9 | ||||||||||||||
Accrued expenses | 94.2 | 65.6 | ||||||||||||||
Current portion of long-term debt | 174.4 | 126.4 | ||||||||||||||
Current portion of operating lease liabilities | 14.5 | 24.5 | ||||||||||||||
Other current liabilities | 55.9 | 84.1 | ||||||||||||||
Other current liabilities — related party | 9.7 | 7.4 | ||||||||||||||
Total current liabilities | 699.9 | 648.9 | ||||||||||||||
Long-term debt | 1,008.9 | 923.5 | ||||||||||||||
Long-term debt — related party | 15.8 | 18.6 | ||||||||||||||
Operating lease liabilities | 94.2 | 67.8 | ||||||||||||||
Tax receivable agreement liability | 64.8 | 68.1 | ||||||||||||||
Other liabilities | 7.8 | 15.2 | ||||||||||||||
Total liabilities | 1,891.4 | 1,742.1 | ||||||||||||||
Mezzanine equity: | ||||||||||||||||
Series A preferred stock | 61.1 | 58.7 | ||||||||||||||
Stockholders' equity: | ||||||||||||||||
Preferred stock | — | — | ||||||||||||||
Class A common stock | 1.5 | 1.5 | ||||||||||||||
Additional paid-in capital | 1,228.6 | 1,225.4 | ||||||||||||||
Accumulated deficit | (83.3) | (16.0) | ||||||||||||||
Accumulated other comprehensive income | 0.2 | 0.3 | ||||||||||||||
Total stockholders' equity attributable to ProFrac Holding Corp. | 1,147.0 | 1,211.2 | ||||||||||||||
Noncontrolling interests | 64.0 | 58.7 | ||||||||||||||
Total stockholders' equity | 1,211.0 | 1,269.9 | ||||||||||||||
Total liabilities, mezzanine equity, and stockholders' equity | $ | 3,163.5 | $ | 3,070.7 | ||||||||||||
ProFrac Holding Corp. (NasdaqGS: ACDC) | ||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Statements of Operations (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
June 30 | March 31 | June 30 | March 31 | June 30 | June 30 | |||||||||||||||||||||||||||||||||||||||||||
(In millions) | 2024 | 2024 | 2023 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 579.4 | $ | 581.5 | $ | 709.2 | $ | 857.5 | $ | 1,160.9 | $ | 1,566.7 | ||||||||||||||||||||||||||||||||||||
Operating costs and expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenues, exclusive of depreciation, depletion and amortization | 393.1 | 373.7 | 474.6 | 554.0 | 766.8 | 1,028.6 | ||||||||||||||||||||||||||||||||||||||||||
Selling, general, and administrative | 54.1 | 50.6 | 63.5 | 69.8 | 104.7 | 133.3 | ||||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 103.4 | 112.8 | 108.9 | 110.3 | 216.2 | 219.2 | ||||||||||||||||||||||||||||||||||||||||||
Acquisition and integration costs | 2.9 | 0.2 | 5.2 | 12.3 | 3.1 | 17.5 | ||||||||||||||||||||||||||||||||||||||||||
Goodwill impairment | 67.7 | — | — | — | 67.7 | — | ||||||||||||||||||||||||||||||||||||||||||
Other operating expense, net | 7.4 | 4.3 | 3.3 | 4.4 | 11.7 | 7.7 | ||||||||||||||||||||||||||||||||||||||||||
Total operating costs and expenses | 628.6 | 541.6 | 655.5 | 750.8 | 1,170.2 | 1,406.3 | ||||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | (49.2) | 39.9 | 53.7 | 106.7 | (9.3) | 160.4 | ||||||||||||||||||||||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | (39.6) | (37.6) | (41.0) | (34.9) | (77.2) | (75.9) | ||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on extinguishment of debt | — | (0.8) | — | 4.1 | (0.8) | 4.1 | ||||||||||||||||||||||||||||||||||||||||||
Other income (expense), net | (0.5) | 1.8 | (7.7) | (9.4) | 1.3 | (17.1) | ||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | (89.3) | 3.3 | 5.0 | 66.5 | (86.0) | 71.5 | ||||||||||||||||||||||||||||||||||||||||||
Income tax benefit (expense) | 23.7 | (0.3) | (9.6) | (6.7) | 23.4 | (16.3) | ||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | (65.6) | 3.0 | (4.6) | 59.8 | (62.6) | 55.2 | ||||||||||||||||||||||||||||||||||||||||||
Less: net (income) loss attributable to noncontrolling interests | (1.1) | (1.2) | 1.5 | 4.2 | (2.3) | 5.7 | ||||||||||||||||||||||||||||||||||||||||||
Less: net (income) loss attributable to redeemable noncontrolling interests | — | — | 0.2 | (42.0) | — | (41.8) | ||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to ProFrac Holding Corp. | $ | (66.7) | $ | 1.8 | $ | (2.9) | $ | 22.0 | $ | (64.9) | $ | 19.1 | ||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Class A common shareholders | $ | (67.9) | $ | 0.6 | $ | (2.9) | $ | 22.0 | $ | (67.3) | $ | 19.1 | ||||||||||||||||||||||||||||||||||||
ProFrac Holding Corp. (NasdaqGS: ACDC) | ||||||||||||||||||||||||||||||||||||||||
Consolidated Statements of Cash Flows (unaudited) | ||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||
June 30 | March 31 | June 30 | June 30 | June 30 | ||||||||||||||||||||||||||||||||||||
(In millions) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (65.6) | $ | 3.0 | $ | (4.6) | $ | (62.6) | $ | 55.2 | ||||||||||||||||||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 103.4 | 112.8 | 108.9 | 216.2 | 219.2 | |||||||||||||||||||||||||||||||||||
Amortization of acquired contract liabilities | (10.9) | (16.5) | (16.5) | (27.4) | (24.6) | |||||||||||||||||||||||||||||||||||
Stock-based compensation | 2.9 | 2.1 | 9.8 | 5.0 | 22.9 | |||||||||||||||||||||||||||||||||||
Loss (gain) on disposal of assets, net | 0.3 | (1.4) | (0.5) | (1.1) | 1.0 | |||||||||||||||||||||||||||||||||||
Gain on insurance recoveries | (3.2) | — | — | (3.2) | — | |||||||||||||||||||||||||||||||||||
Non-cash loss (gain) on extinguishment of debt | — | 0.8 | — | 0.8 | (4.1) | |||||||||||||||||||||||||||||||||||
Amortization of debt issuance costs | 4.4 | 3.2 | 6.8 | 7.6 | 12.9 | |||||||||||||||||||||||||||||||||||
Acquisition earnout adjustment | — | — | (3.6) | — | (6.6) | |||||||||||||||||||||||||||||||||||
Unrealized loss (gain) on investments, net | 1.0 | (1.2) | 9.3 | (0.2) | 19.0 | |||||||||||||||||||||||||||||||||||
Goodwill impairment | 67.7 | — | — | 67.7 | — | |||||||||||||||||||||||||||||||||||
Deferred tax expense (benefit) | (27.4) | 0.2 | — | (27.2) | — | |||||||||||||||||||||||||||||||||||
Other non-cash items, net | — | — | — | — | 0.1 | |||||||||||||||||||||||||||||||||||
Changes in operating assets and liabilities | 40.9 | (23.9) | 44.1 | 17.0 | 92.2 | |||||||||||||||||||||||||||||||||||
Net cash provided by operating activities | 113.5 | 79.1 | 153.7 | 192.6 | 387.2 | |||||||||||||||||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||||||||||||||
Acquisitions, net of cash acquired | (194.4) | — | (12.9) | (194.4) | (456.5) | |||||||||||||||||||||||||||||||||||
Investment in property, plant & equipment | (61.9) | (59.9) | (98.1) | (121.8) | (181.3) | |||||||||||||||||||||||||||||||||||
Proceeds from sale of assets | 22.4 | 6.6 | 0.4 | 29.0 | 1.4 | |||||||||||||||||||||||||||||||||||
Proceeds from insurance recoveries | 4.4 | — | — | 4.4 | — | |||||||||||||||||||||||||||||||||||
Other investments | (2.0) | — | — | (2.0) | — | |||||||||||||||||||||||||||||||||||
Net cash used in investing activities | (231.5) | (53.3) | (110.6) | (284.8) | (636.4) | |||||||||||||||||||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of long-term debt | 120.9 | — | 0.2 | 120.9 | 320.2 | |||||||||||||||||||||||||||||||||||
Repayments of long-term debt | (18.1) | (37.5) | (62.3) | (55.6) | (80.5) | |||||||||||||||||||||||||||||||||||
Borrowings from revolving credit agreements | 533.1 | 501.1 | 457.9 | 1,034.2 | 864.6 | |||||||||||||||||||||||||||||||||||
Repayments of revolving credit agreements | (518.5) | (485.2) | (482.9) | (1,003.7) | (845.9) | |||||||||||||||||||||||||||||||||||
Payment of debt issuance costs | (2.3) | (1.1) | (0.1) | (3.4) | (18.5) | |||||||||||||||||||||||||||||||||||
Tax withholding related to net share settlement of equity awards | (1.4) | (0.1) | (0.8) | (1.5) | (0.8) | |||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | 113.7 | (22.8) | (88.0) | 90.9 | 239.1 | |||||||||||||||||||||||||||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | (4.3) | 3.0 | (44.9) | (1.3) | (10.1) | |||||||||||||||||||||||||||||||||||
Cash, cash equivalents, and restricted cash beginning of period | 28.3 | 25.3 | 72.7 | 25.3 | 37.9 | |||||||||||||||||||||||||||||||||||
Cash, cash equivalents, and restricted cash end of period | $ | 24.0 | $ | 28.3 | $ | 27.8 | $ | 24.0 | $ | 27.8 | ||||||||||||||||||||||||||||||
ProFrac Holding Corp. (NasdaqGS: ACDC) | ||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
June 30 | March 31 | June 30 | March 31 | June 30 | June 30 | |||||||||||||||||||||||||||||||||||||||||||
(In millions) | 2024 | 2024 | 2023 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (65.6) | $ | 3.0 | $ | (4.6) | $ | 59.8 | $ | (62.6) | $ | 55.2 | ||||||||||||||||||||||||||||||||||||
Interest expense, net | 39.6 | 37.6 | 41.0 | 34.9 | 77.2 | 75.9 | ||||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 103.4 | 112.8 | 108.9 | 110.3 | 216.2 | 219.2 | ||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | (23.7) | 0.3 | 9.6 | 6.7 | (23.4) | 16.3 | ||||||||||||||||||||||||||||||||||||||||||
Loss (gain) on disposal of assets, net | 0.3 | (1.4) | (0.5) | 1.5 | (1.1) | 1.0 | ||||||||||||||||||||||||||||||||||||||||||
Loss (gain) on extinguishment of debt | — | 0.8 | — | (4.1) | 0.8 | (4.1) | ||||||||||||||||||||||||||||||||||||||||||
Acquisition earnout adjustment | — | — | (3.6) | (3.0) | — | (6.6) | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 2.9 | 2.1 | 2.4 | 2.9 | 5.0 | 5.3 | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation related to deemed contributions | — | — | 7.4 | 10.2 | — | 17.6 | ||||||||||||||||||||||||||||||||||||||||||
Provision for credit losses, net of recoveries | — | — | — | 0.1 | — | 0.1 | ||||||||||||||||||||||||||||||||||||||||||
Severance charges | 1.1 | 0.7 | — | — | 1.8 | — | ||||||||||||||||||||||||||||||||||||||||||
Acquisition and integration costs | 2.9 | 0.2 | 5.2 | 12.3 | 3.1 | 17.5 | ||||||||||||||||||||||||||||||||||||||||||
Impairment of goodwill | 67.7 | — | — | — | 67.7 | — | ||||||||||||||||||||||||||||||||||||||||||
Gain on insurance recoveries | (3.2) | — | — | — | (3.2) | — | ||||||||||||||||||||||||||||||||||||||||||
Litigation expenses and accruals for legal contingencies | 9.2 | 4.8 | 7.4 | 5.8 | 14.0 | 13.2 | ||||||||||||||||||||||||||||||||||||||||||
Unrealized loss (gain) on investments, net | 1.0 | (1.2) | 9.3 | 9.7 | (0.2) | 19.0 | ||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 135.6 | $ | 159.7 | $ | 182.5 | $ | 247.1 | $ | 295.3 | $ | 429.6 | ||||||||||||||||||||||||||||||||||||
ProFrac Holding Corp. (NasdaqGS: ACDC) | ||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | ||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
June 30 | March 31 | June 30 | March 31 | June 30 | June 30 | |||||||||||||||||||||||||||||||||||||||||||
(In millions) | 2024 | 2024 | 2023 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||
Stimulation services | $ | 505.6 | $ | 517.3 | $ | 608.2 | $ | 790.2 | $ | 1,022.9 | $ | 1,398.4 | ||||||||||||||||||||||||||||||||||||
Proppant production | 69.5 | 77.7 | 109.8 | 82.2 | 147.2 | 192.0 | ||||||||||||||||||||||||||||||||||||||||||
Manufacturing | 55.9 | 43.5 | 31.1 | 67.1 | 99.4 | 98.2 | ||||||||||||||||||||||||||||||||||||||||||
Other | 47.6 | 41.7 | 51.7 | 49.2 | 89.3 | 100.9 | ||||||||||||||||||||||||||||||||||||||||||
Total segments | 678.6 | 680.2 | 800.8 | 988.7 | 1,358.8 | 1,789.5 | ||||||||||||||||||||||||||||||||||||||||||
Eliminations | (99.2) | (98.7) | (91.6) | (131.2) | (197.9) | (222.8) | ||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 579.4 | $ | 581.5 | $ | 709.2 | $ | 857.5 | $ | 1,160.9 | $ | 1,566.7 | ||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||||||||||||
Stimulation services | $ | 107.3 | $ | 125.0 | $ | 122.9 | $ | 205.7 | $ | 232.3 | $ | 328.6 | ||||||||||||||||||||||||||||||||||||
Proppant production | 25.7 | 28.4 | 57.8 | 41.3 | 54.1 | 99.1 | ||||||||||||||||||||||||||||||||||||||||||
Manufacturing | 0.1 | 4.4 | 3.1 | 8.0 | 4.5 | 11.1 | ||||||||||||||||||||||||||||||||||||||||||
Other | 4.4 | 3.6 | (1.3) | (7.9) | 8.0 | (9.2) | ||||||||||||||||||||||||||||||||||||||||||
Total segments | 137.5 | 161.4 | 182.5 | 247.1 | 298.9 | 429.6 | ||||||||||||||||||||||||||||||||||||||||||
Eliminations | (1.9) | (1.7) | — | — | (3.6) | — | ||||||||||||||||||||||||||||||||||||||||||
Total adjusted EBITDA | $ | 135.6 | $ | 159.7 | $ | 182.5 | $ | 247.1 | $ | 295.3 | $ | 429.6 | ||||||||||||||||||||||||||||||||||||
ProFrac Holding Corp. (NasdaqGS: ACDC) | ||||||||||||||||
Net Debt | ||||||||||||||||
June 30 | December 31 | |||||||||||||||
(In millions) | 2024 | 2023 | ||||||||||||||
Current portion of long-term debt | $ | 174.4 | $ | 126.4 | ||||||||||||
Long-term debt | 1,008.9 | 923.5 | ||||||||||||||
Long-term debt — related party | 15.8 | 18.6 | ||||||||||||||
Total debt | 1,199.1 | 1,068.5 | ||||||||||||||
Plus: unamortized debt discounts, premiums, and issuance costs | 35.3 | 39.4 | ||||||||||||||
Total principal amount of debt | 1,234.4 | 1,107.9 | ||||||||||||||
Less: cash and cash equivalents | (24.0) | (25.3) | ||||||||||||||
Net debt | $ | 1,210.4 | $ | 1,082.6 | ||||||||||||
ProFrac Holding Corp. (NasdaqGS: ACDC) | ||||||||||||||||
Free Cash Flow | ||||||||||||||||
Three Months Ended | ||||||||||||||||
June 30 | March 31 | |||||||||||||||
(In millions) | 2024 | 2024 | ||||||||||||||
Net cash provided by operating activities | $ | 113.5 | $ | 79.1 | ||||||||||||
Investment in property, plant & equipment | (61.9) | (59.9) | ||||||||||||||
Proceeds from sale of assets | 22.4 | 6.6 | ||||||||||||||
Free cash flow | $ | 74.0 | $ | 25.8 | ||||||||||||
View original content:https://www.prnewswire.com/news-releases/profrac-holding-corp-reports-second-quarter-2024-results-302217368.html
SOURCE ProFrac Holding Corp.
FAQ
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