Atlas Energy Solutions Announces Second Quarter 2024 Results; Increases Quarterly Dividend
Atlas Energy Solutions Inc. (NYSE: AESI) reported its Q2 2024 financial results, highlighting total sales of $287.5 million, a 49% increase from Q1 2024. The company's net income was $14.8 million with a 5% net income margin, while Adjusted EBITDA reached $72.0 million with a 25% margin. Atlas declared an increased quarterly dividend of $0.23 per share, payable on August 22, 2024.
Key highlights include:
- Net cash provided by operating activities: $60.9 million
- Adjusted Free Cash Flow: $66.6 million (23% margin)
- Dune Express construction remains on-time and on-budget
- Total liquidity as of June 30, 2024: $279.2 million
The company expects Q3 2024 financial results to improve significantly following the completion of the Kermit Feed System reconstruction.
Atlas Energy Solutions Inc. (NYSE: AESI) ha riportato i risultati finanziari del secondo trimestre del 2024, evidenziando ricavi totali di 287,5 milioni di dollari, con un incremento del 49% rispetto al primo trimestre del 2024. L'utile netto dell'azienda è stato di 14,8 milioni di dollari con un margine di utile netto del 5%, mentre l'EBITDA rettificato ha raggiunto i 72,0 milioni di dollari con un margine del 25%. Atlas ha dichiarato un aumento del dividendo trimestrale a 0,23 dollari per azione, pagabile il 22 agosto 2024.
I punti salienti includono:
- Flusso di cassa netto fornito dalle attività operative: 60,9 milioni di dollari
- Flusso di cassa libero rettificato: 66,6 milioni di dollari (margine del 23%)
- La costruzione di Dune Express è in linea con i tempi e il budget
- Liquidità totale al 30 giugno 2024: 279,2 milioni di dollari
L'azienda prevede che i risultati finanziari del terzo trimestre del 2024 migliorino significativamente dopo il completamento della ricostruzione del sistema di alimentazione Kermit.
Atlas Energy Solutions Inc. (NYSE: AESI) reportó sus resultados financieros del segundo trimestre de 2024, destacando ventas totales de 287,5 millones de dólares, un incremento del 49% en comparación con el primer trimestre de 2024. El ingreso neto de la compañía fue de 14,8 millones de dólares con un margen de ingreso neto del 5%, mientras que el EBITDA ajustado alcanzó los 72,0 millones de dólares con un margen del 25%. Atlas declaró un aumento del dividendo trimestral de 0,23 dólares por acción, pagadero el 22 de agosto de 2024.
Los aspectos destacados incluyen:
- Flujo de efectivo neto proporcionado por actividades operativas: 60,9 millones de dólares
- Flujo de caja libre ajustado: 66,6 millones de dólares (margen del 23%)
- La construcción de Dune Express se mantiene dentro del plazo y del presupuesto
- Liquidez total al 30 de junio de 2024: 279,2 millones de dólares
La compañía espera que los resultados financieros del tercer trimestre de 2024 mejoren significativamente tras la finalización de la reconstrucción del sistema de alimentación Kermit.
아틀라스 에너지 솔루션즈 Inc. (NYSE: AESI)는 2024년 2분기 재무 결과를 발표하며 총 매출 2억 8750만 달러를 보고했으며, 이는 2024년 1분기 대비 49% 증가한 수치입니다. 회사의 순이익은 1480만 달러이며 순이익률은 5%였고, 조정된 EBITDA는 7200만 달러에 도달했으며, 마진은 25%입니다. 아틀라스는 주당 0.23달러의 분기 배당금을 인상하여 2024년 8월 22일에 지급될 예정입니다.
주요 사항은 다음과 같습니다:
- 운영 활동에서 제공된 순 현금: 6090만 달러
- 조정된 자유 현금 흐름: 6660만 달러(23% 마진)
- 듄 익스프레스 건설은 예정대로 진행되고 있으며 예산 내에 있습니다
- 2024년 6월 30일 기준 총 유동성: 2억 7920만 달러
회사는 케르밋 공급 시스템 재건축 완료 이후 2024년 3분기 재무 결과가 크게 개선될 것으로 기대하고 있습니다.
Atlas Energy Solutions Inc. (NYSE: AESI) a annoncé ses résultats financiers pour le deuxième trimestre 2024, mettant en évidence des ventes totales de 287,5 millions de dollars, soit une augmentation de 49% par rapport au premier trimestre 2024. Le revenu net de la société était de 14,8 millions de dollars avec une marge de revenu net de 5%, tandis que l'EBITDA ajusté a atteint 72,0 millions de dollars avec une marge de 25%. Atlas a déclaré un dividende trimestriel augmenté de 0,23 dollar par action, payable le 22 août 2024.
Les éléments clés incluent :
- Flux de trésorerie net provenant des activités opérationnelles : 60,9 millions de dollars
- Flux de trésorerie libre ajusté : 66,6 millions de dollars (marge de 23%)
- La construction de Dune Express est à l'heure et dans le budget
- Liquidité totale au 30 juin 2024 : 279,2 millions de dollars
La société s'attend à ce que les résultats financiers du troisième trimestre 2024 s'améliorent considérablement après l'achèvement de la reconstruction du système d'alimentation Kermit.
Atlas Energy Solutions Inc. (NYSE: AESI) hat seine Finanzergebnisse für das zweite Quartal 2024 veröffentlicht und hebt den Gesamtumsatz von 287,5 Millionen US-Dollar hervor, was einem Anstieg von 49% im Vergleich zum ersten Quartal 2024 entspricht. Das Nettoeinkommen des Unternehmens betrug 14,8 Millionen US-Dollar mit einer Nettomarge von 5%, während das bereinigte EBITDA 72,0 Millionen US-Dollar mit einer Marge von 25% erreichte. Atlas erklärte eine erhöhte Quartalsdividende von 0,23 US-Dollar pro Aktie, die am 22. August 2024 zahlbar ist.
Wichtige Highlights sind:
- Netto-Cashflow aus operativer Tätigkeit: 60,9 Millionen US-Dollar
- Bereinigter freier Cashflow: 66,6 Millionen US-Dollar (23% Marge)
- Der Bau von Dune Express liegt im Zeit- und Budgetrahmen
- Gesamtliquidität zum 30. Juni 2024: 279,2 Millionen US-Dollar
Das Unternehmen erwartet, dass sich die Finanzergebnisse für das dritte Quartal 2024 nach Abschluss des Wiederaufbaus des Kermit-Zuführungssystems erheblich verbessern werden.
- Total sales increased by 49% to $287.5 million compared to Q1 2024
- Declared an increased quarterly dividend of $0.23 per share
- Dune Express construction remains on-time and on-budget
- Strong liquidity position of $279.2 million as of June 30, 2024
- Company expects Q3 2024 financial results to improve significantly
- Net income decreased to $14.8 million from $26.8 million in Q1 2024
- Net Income Margin dropped to 5% from 14% in Q1 2024
- Adjusted EBITDA Margin decreased to 25% from 39% in Q1 2024
- Adjusted Free Cash Flow Margin declined to 23% from 37% in Q1 2024
- Cost of sales increased by 89% compared to Q1 2024
Insights
Atlas Energy Solutions' Q2 2024 results present a mixed picture. While total sales increased
The company's Adjusted EBITDA margin also decreased from
The increased quarterly dividend of
Atlas Energy's Q2 results reflect the volatile nature of the energy services sector. The company's ability to increase sales volumes by
The
The transition from a base plus variable dividend structure to a standalone base dividend of
Second Quarter 2024 Highlights
-
Total sales of
$287.5 million -
Net income of
($14.8 million 5% Net Income Margin) -
Adjusted EBITDA of
($72.0 million 25% Adjusted EBITDA Margin) (1) -
Net cash provided by operating activities of
$60.9 million -
Adjusted Free Cash Flow of
($66.6 million 23% Adjusted Free Cash Flow Margin) (1) - Dune Express construction remains on-time and on-budget
-
Declares increased quarterly dividend of
per share, payable August 22, 2024$0.23
Financial Summary
|
Three Months Ended |
|||||||||||
|
|
June 30, 2024 |
|
|
March 31, 2024 |
|
|
June 30, 2023 |
|
|||
|
|
(unaudited, in thousands, except percentages) |
||||||||||
Sales |
|
$ |
287,518 |
|
|
$ |
192,667 |
|
|
$ |
161,788 |
|
Net income |
|
$ |
14,837 |
|
|
$ |
26,787 |
|
|
$ |
71,211 |
|
Net Income Margin |
|
|
5 |
% |
|
|
14 |
% |
|
|
44 |
% |
Adjusted EBITDA |
|
$ |
72,045 |
|
|
$ |
75,543 |
|
|
$ |
92,846 |
|
Adjusted EBITDA Margin |
|
|
25 |
% |
|
|
39 |
% |
|
|
57 |
% |
Net cash provided by operating activities |
|
$ |
60,856 |
|
|
$ |
39,562 |
|
|
$ |
103,883 |
|
Adjusted Free Cash Flow |
|
$ |
66,627 |
|
|
$ |
71,083 |
|
|
$ |
86,821 |
|
Adjusted Free Cash Flow Margin |
|
|
23 |
% |
|
|
37 |
% |
|
|
54 |
% |
(1) |
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin are non-GAAP financials measures. See Non-GAAP Financial Measures for a discussion of these measures and a reconciliation of these measures to our most directly comparable financial measures calculated and presented in accordance with GAAP. |
John Turner, President & CEO, commented, “While second quarter results were weighed down by lower throughput and higher costs related to the reconstruction of the Kermit Feed System, the rest of our operations performed exceedingly well. The reconstruction of the damaged feed system was completed at the end of June, and, after a ramp-up period in July, Atlas is back to normal loadout operations today at
Second Quarter 2024 Financial Results
Second quarter 2024 total sales increased
Second quarter 2024 cost of sales (excluding depreciation, depletion and accretion expense) (“cost of sales”) increased by
Selling, general and administrative expenses (“SG&A”) for the second quarter of 2024 decreased
Net income for the second quarter of 2024 was
Liquidity, Capital Expenditures and Other
As of June 30, 2024, the Company’s total liquidity was
Net cash used in investing activities was
Quarterly Cash Dividend
On August 1, 2024, the Board of Directors of Atlas declared an increased dividend to common stockholders of
Conference Call Information
The Company will host a conference call to discuss financial and operational results on Tuesday, August 6, 2024 at 9:00am Central Time (10:00am Eastern Time). Individuals wishing to participate in the conference call should dial (877) 407-4133. A live webcast will be available at https://ir.atlas.energy/. Please access the webcast or dial in for the call at least 10 minutes ahead of the start time to ensure a proper connection. An archived version of the conference call will be available on the Company’s website shortly after the conclusion of the call.
The Company will also post an updated investor presentation titled “Investor Presentation August 2024”, in addition to a "August 2024 Growth Projects Update" video, at https://ir.atlas.energy/ in the "Presentations” section under “News & Events” tab on the Company’s Investor Relations webpage prior to the conference call.
About Atlas Energy Solutions
Atlas Energy Solutions Inc. is a leading proppant producer and proppant logistics provider, serving primarily the Permian Basin of
We are a low-cost producer of various high-quality, locally sourced proppants used during the well completion process. We offer both dry and damp sand, and carry various mesh sizes including 100 mesh and 40/70 mesh. Proppant is a key component necessary to facilitate the recovery of hydrocarbons from oil and natural gas wells.
Our logistics platform is designed to increase the efficiency, safety and sustainability of the oil and natural gas industry within the Permian Basin. Proppant logistics is increasingly a differentiating factor affecting customer choice among proppant producers. The cost of delivering sand, even short distances, can be a significant component of customer spending on their well completions given the substantial volumes that are utilized in modern well designs.
We continue to invest in and pursue leading-edge technologies, including autonomous trucking, digital infrastructure, and artificial intelligence, to support opportunities to gain efficiencies in our operations. These technology-focused investments aim to improve our cost structure and also combine to produce beneficial environmental and community impacts.
While our core business is fundamentally aligned with a lower emissions economy, our core obligation has been, and will always be, to our stockholders. We recognize that maximizing value for our stockholders requires that we optimize the outcomes for our broader stakeholders, including our employees and the communities in which we operate. We are proud of the fact that our approach to innovation in the hydrocarbon industry while operating in an environmentally responsible manner creates immense value. Since our founding in 2017, our core mission has been to improve human beings’ access to the hydrocarbons that power our lives while also delivering differentiated social and environmental progress. Our Atlas team has driven innovation and has produced industry-leading environmental benefits by reducing energy consumption, emissions, and our aerial footprint. We call this Sustainable Environmental and Social Progress.
We were founded in 2017 by Ben M. “Bud” Brigham, our Executive Chairman, and are led by an entrepreneurial team with a history of constructive disruption bringing significant and complementary experience to this enterprise, including the perspective of longtime E&P operators, which provides for an elevated understanding of the end users of our products and services. Our executive management team has a proven track record with a history of generating positive returns and value creation. Our experience as E&P operators was instrumental to our understanding of the opportunity created by in-basin sand production and supply in the Permian Basin, which we view as North America’s premier shale resource and which we believe will remain its most active through economic cycles.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Statements that are predictive or prospective in nature, that depend upon or refer to future events or conditions or that include the words “may,” “assume,” “forecast,” “position,” “strategy,” “potential,” “continue,” “could,” “will,” “plan,” “project,” “budget,” “predict,” “pursue,” “target,” “seek,” “objective,” “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements about the anticipated financial performance of Atlas following our acquisition of substantially all of the Permian Basin proppant production and logistics businesses and operations of Hi-Crush Inc. (the “Hi-Crush Acquisition”); the expected synergies and efficiencies to be achieved as a result of the Hi-Crush Acquisition; statements regarding our ability to return the
Although forward-looking statements reflect our good faith beliefs at the time they are made, we caution you that these forward-looking statements are subject to a number of risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. These risks include but are not limited to: uncertainties as to whether the Hi-Crush Acquisition will achieve its anticipated benefits and projected synergies within the expected time period or at all; Atlas’s ability to integrate Hi-Crush Inc.’s operations in a successful manner and in the expected time period; risks that the anticipated tax treatment of the Hi-Crush Acquisition is not obtained; unforeseen or unknown liabilities; unexpected future capital expenditures; potential litigation relating to the Hi-Crush Acquisition; the effect of the completion of the Hi-Crush Acquisition on Atlas’s business relationships and business generally; risks that the Hi-Crush Acquisition disrupts current plans and operations of Atlas and its management team and potential difficulties in retaining employees as a result of the Hi-Crush Acquisition; the risks related to Atlas’s financing of the Hi-Crush Acquisition; potential negative effects of the Hi-Crush Acquisition on the market price of Atlas’s common stock or operating results; uncertainty regarding the availability of insurance proceeds to offset the cost of reconstructing the
Atlas Energy Solutions Inc.
|
||||||||||||
|
|
Three Months Ended |
||||||||||
|
|
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
||||||
|
|
|
|
|
|
|
||||||
Product sales |
|
$ |
128,210 |
|
|
$ |
113,432 |
|
|
$ |
125,216 |
|
Service sales |
|
|
159,308 |
|
|
|
79,235 |
|
|
|
36,572 |
|
Total sales |
|
|
287,518 |
|
|
|
192,667 |
|
|
|
161,788 |
|
Cost of sales (excluding depreciation, depletion and accretion expense) |
|
|
202,136 |
|
|
|
106,746 |
|
|
|
63,504 |
|
Depreciation, depletion and accretion expense |
|
|
25,027 |
|
|
|
17,175 |
|
|
|
9,433 |
|
Gross profit |
|
|
60,355 |
|
|
|
68,746 |
|
|
|
88,851 |
|
Selling, general and administrative expense (including stock and unit-based compensation expense of |
|
|
27,266 |
|
|
|
28,008 |
|
|
|
12,183 |
|
Amortization expense of acquired intangible assets |
|
|
3,768 |
|
|
|
1,061 |
|
|
|
— |
|
Loss on disposal of assets |
|
|
11,098 |
|
|
|
— |
|
|
|
— |
|
Insurance recovery (gain) |
|
|
(10,000 |
) |
|
|
— |
|
|
|
— |
|
Operating income |
|
|
28,223 |
|
|
|
39,677 |
|
|
|
76,668 |
|
Interest (expense), net |
|
|
(10,458 |
) |
|
|
(4,978 |
) |
|
|
(521 |
) |
Other income |
|
|
138 |
|
|
|
23 |
|
|
|
118 |
|
Income before income taxes |
|
|
17,903 |
|
|
|
34,722 |
|
|
|
76,265 |
|
Income tax expense |
|
|
3,066 |
|
|
|
7,935 |
|
|
|
5,054 |
|
Net income |
|
$ |
14,837 |
|
|
$ |
26,787 |
|
|
$ |
71,211 |
|
Less: Net income attributable to redeemable noncontrolling interest |
|
|
|
|
|
|
32,693 |
|
||||
Net income attributable to Atlas Energy Solutions Inc. |
|
$ |
14,837 |
|
|
$ |
26,787 |
|
|
$ |
38,518 |
|
|
|
|
|
|
|
|
||||||
Net income per common share |
|
|
|
|
|
|
||||||
Basic |
|
$ |
0.13 |
|
|
$ |
0.26 |
|
|
$ |
0.67 |
|
Diluted |
|
$ |
0.13 |
|
|
$ |
0.26 |
|
|
$ |
0.67 |
|
Weighted average common shares outstanding |
|
|
|
|
|
|
||||||
Basic |
|
|
111,064 |
|
|
|
102,931 |
|
|
|
57,148 |
|
Diluted |
|
|
112,023 |
|
|
|
103,822 |
|
|
|
57,420 |
|
Atlas Energy Solutions Inc.
|
||||||||||||
|
|
Three Months Ended |
||||||||||
|
|
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
||||||
|
|
|
|
|
|
|
||||||
Operating activities: |
|
|
|
|
|
|
||||||
Net income |
|
$ |
14,837 |
|
|
$ |
26,787 |
|
|
$ |
71,211 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||||||
Depreciation, depletion and accretion expense |
|
|
25,886 |
|
|
|
18,007 |
|
|
|
9,814 |
|
Amortization of debt discount |
|
|
1,083 |
|
|
|
407 |
|
|
|
120 |
|
Amortization of deferred financing costs |
|
|
118 |
|
|
|
78 |
|
|
|
104 |
|
Amortization expense of acquired intangible assets |
|
|
3,768 |
|
|
|
1,061 |
|
|
|
— |
|
Loss on disposal of assets |
|
|
11,098 |
|
|
|
— |
|
|
|
— |
|
Insurance recovery (gain) |
|
|
(10,000 |
) |
|
|
— |
|
|
|
— |
|
Stock and unit-based compensation |
|
|
5,466 |
|
|
|
4,206 |
|
|
|
1,624 |
|
Deferred income tax |
|
|
2,758 |
|
|
|
7,521 |
|
|
|
5,819 |
|
Other |
|
|
(744 |
) |
|
|
(5 |
) |
|
|
(21 |
) |
Changes in operating assets and liabilities: |
|
|
6,586 |
|
|
|
(18,500 |
) |
|
|
15,212 |
|
Net cash provided by operating activities |
|
|
60,856 |
|
|
|
39,562 |
|
|
|
103,883 |
|
|
|
|
|
|
|
|
||||||
Investing activities: |
|
|
|
|
|
|
||||||
Purchases of property, plant and equipment |
|
|
(115,790 |
) |
|
|
(95,486 |
) |
|
|
(85,895 |
) |
Hi-Crush acquisition, net of cash acquired |
|
|
— |
|
|
|
(142,233 |
) |
|
|
— |
|
Net cash used in investing activities |
|
|
(115,790 |
) |
|
|
(237,719 |
) |
|
|
(85,895 |
) |
|
|
|
|
|
|
|
||||||
Financing Activities: |
|
|
|
|
|
|
||||||
Payment of offering costs |
|
|
— |
|
|
|
— |
|
|
|
(4,439 |
) |
Proceeds from borrowings |
|
|
3,039 |
|
|
|
198,500 |
|
|
|
— |
|
Principal payments on term loan borrowings |
|
|
(4,217 |
) |
|
|
(1,381 |
) |
|
|
(8,347 |
) |
Issuance costs associated with debt financing |
|
|
(416 |
) |
|
|
(730 |
) |
|
|
(222 |
) |
Payments under finance leases |
|
|
(846 |
) |
|
|
(65 |
) |
|
|
(962 |
) |
Repayment of notes payable |
|
|
(855 |
) |
|
|
(216 |
) |
|
|
— |
|
Dividends and distributions |
|
|
(24,168 |
) |
|
|
(21,005 |
) |
|
|
(15,000 |
) |
Net cash provided by (used in) financing activities |
|
|
(27,463 |
) |
|
|
175,103 |
|
|
|
(28,970 |
) |
Net decrease in cash and cash equivalents |
|
|
(82,397 |
) |
|
|
(23,054 |
) |
|
|
(10,982 |
) |
Cash and cash equivalents, beginning of period |
|
|
187,120 |
|
|
|
210,174 |
|
|
|
352,656 |
|
Cash and cash equivalents, end of period |
|
$ |
104,723 |
|
|
$ |
187,120 |
|
|
$ |
341,674 |
|
Atlas Energy Solutions Inc.
|
||||||||
|
|
As of |
|
As of |
||||
|
|
June 30, 2024 |
|
December 31, 2023 |
||||
|
|
(unaudited) |
|
|
|
|||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
104,723 |
|
|
$ |
210,174 |
|
Accounts receivable, including related parties |
|
|
197,072 |
|
|
|
71,170 |
|
Inventories, prepaid expenses and other current assets |
|
|
63,361 |
|
|
|
37,342 |
|
Total current assets |
|
|
365,156 |
|
|
|
318,686 |
|
Property, plant and equipment, net |
|
|
1,403,417 |
|
|
|
934,660 |
|
Right-of-use assets |
|
|
22,664 |
|
|
|
4,151 |
|
Goodwill |
|
|
75,219 |
|
|
|
— |
|
Intangible assets |
|
|
112,422 |
|
|
|
1,767 |
|
Other long-term assets |
|
|
3,451 |
|
|
|
2,422 |
|
Total assets |
|
$ |
1,982,329 |
|
|
$ |
1,261,686 |
|
Liabilities and stockholders' equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable, including related parties |
|
|
103,877 |
|
|
|
61,159 |
|
Accrued liabilities and other current liabilities |
|
|
104,903 |
|
|
|
31,433 |
|
Current portion of long-term debt |
|
|
30,553 |
|
|
|
— |
|
Total current liabilities |
|
|
239,333 |
|
|
|
92,592 |
|
Long-term debt, net of discount and deferred financing costs |
|
|
447,450 |
|
|
|
172,820 |
|
Deferred tax liabilities |
|
|
207,027 |
|
|
|
121,529 |
|
Other long-term liabilities |
|
|
26,559 |
|
|
|
6,921 |
|
Total liabilities |
|
|
920,369 |
|
|
|
393,862 |
|
Total stockholders' and members' equity |
|
|
1,061,960 |
|
|
|
867,824 |
|
Total liabilities and stockholders’ equity |
|
$ |
1,982,329 |
|
|
$ |
1,261,686 |
|
Non-GAAP Financial Measures
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, Adjusted Free Cash Flow Margin, Adjusted Free Cash Flow Conversion and Maintenance Capital Expenditures are non-GAAP supplemental financial measures used by our management and by external users of our financial statements such as investors, research analysts and others, in the case of Adjusted EBITDA, to assess our operating performance on a consistent basis across periods by removing the effects of development activities, provide views on capital resources available to organically fund growth projects and, in the case of Adjusted Free Cash Flow, assess the financial performance of our assets and their ability to sustain dividends or reinvest to organically fund growth projects over the long term without regard to financing methods, capital structure, or historical cost basis.
These measures do not represent and should not be considered alternatives to, or more meaningful than, net income, income from operations, net cash provided by operating activities or any other measure of financial performance presented in accordance with GAAP as measures of our financial performance. Adjusted EBITDA and Adjusted Free Cash Flow have important limitations as analytical tools because they exclude some but not all items that affect net income, the most directly comparable GAAP financial measure. Our computation of Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow, Adjusted Free Cash Flow Margin, Adjusted Free Cash Flow Conversion and Maintenance Capital Expenditures may differ from computations of similarly titled measures of other companies.
Non-GAAP Measure Definitions:
- We define Adjusted EBITDA as net income before depreciation, depletion and accretion, interest expense, income tax expense, stock and unit-based compensation, loss on extinguishment of debt, loss on disposal of assets, insurance recovery (gain), unrealized commodity derivative gain (loss), other acquisition related costs, and non-recurring transaction costs. Management believes Adjusted EBITDA is useful because it allows management to more effectively evaluate the Company’s operating performance and compare the results of its operations from period to period and against our peers without regard to financing method or capital structure. We exclude the items listed above from net income in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired.
- We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total sales.
- We define Adjusted Free Cash Flow as Adjusted EBITDA less Maintenance Capital Expenditures. Management believes that Adjusted Free Cash Flow is useful to investors as it provides a measure of the ability of our business to generate cash.
- We define Adjusted Free Cash Flow Margin as Adjusted Free Cash Flow divided by total sales.
- We define Adjusted Free Cash Flow Conversion as Adjusted Free Cash Flow divided by Adjusted EBITDA.
- We define Maintenance Capital Expenditures as capital expenditures excluding growth capital expenditures and reconstruction of previously incurred growth capital expenditures.
Atlas Energy Solutions Inc. – Supplemental Information
|
||||||||||||
|
|
Three Months Ended |
||||||||||
|
|
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
||||||
Net income |
|
$ |
14,837 |
|
|
$ |
26,787 |
|
|
$ |
71,211 |
|
Depreciation, depletion and accretion expense |
|
|
25,886 |
|
|
|
18,007 |
|
|
|
9,814 |
|
Amortization expense of acquired intangible assets |
|
|
3,768 |
|
|
|
1,061 |
|
|
|
— |
|
Interest expense |
|
|
12,014 |
|
|
|
6,976 |
|
|
|
4,027 |
|
Income tax expense |
|
|
3,066 |
|
|
|
7,935 |
|
|
|
5,054 |
|
EBITDA |
|
$ |
59,571 |
|
|
$ |
60,766 |
|
|
$ |
90,106 |
|
Stock and unit-based compensation |
|
|
5,466 |
|
|
|
4,206 |
|
|
|
1,624 |
|
Non-recurring transaction costs |
|
|
22 |
|
|
|
368 |
|
|
|
1,116 |
|
Other acquisition related costs(1) |
|
|
5,888 |
|
|
|
10,203 |
|
|
|
— |
|
Loss on disposal of assets(2) |
|
|
11,098 |
|
|
|
— |
|
|
|
— |
|
Insurance recovery (gain)(3) |
|
|
(10,000 |
) |
|
|
— |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
72,045 |
|
|
$ |
75,543 |
|
|
$ |
92,846 |
|
Maintenance Capital Expenditures |
|
$ |
5,418 |
|
|
$ |
4,460 |
|
|
$ |
6,025 |
|
Adjusted Free Cash Flow |
|
$ |
66,627 |
|
|
$ |
71,083 |
|
|
$ |
86,821 |
|
Atlas Energy Solutions Inc. – Supplemental Information
|
||||||||||||
|
|
Three Months Ended |
||||||||||
|
|
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
||||||
Net cash provided by operating activities |
|
$ |
60,856 |
|
|
$ |
39,562 |
|
|
$ |
103,883 |
|
Current income tax expense (benefit)(4) |
|
|
308 |
|
|
|
414 |
|
|
|
(765 |
) |
Change in operating assets and liabilities |
|
|
(6,586 |
) |
|
|
18,500 |
|
|
|
(15,212 |
) |
Cash interest expense(4) |
|
|
10,813 |
|
|
|
6,491 |
|
|
|
3,804 |
|
Maintenance capital expenditures(4) |
|
|
(5,418 |
) |
|
|
(4,460 |
) |
|
|
(6,025 |
) |
Non-recurring transaction costs |
|
|
22 |
|
|
|
368 |
|
|
|
1,116 |
|
Other acquisition related costs |
|
|
5,888 |
|
|
|
10,203 |
|
|
|
— |
|
Other |
|
|
744 |
|
|
|
5 |
|
|
|
20 |
|
Adjusted Free Cash Flow |
|
$ |
66,627 |
|
|
$ |
71,083 |
|
|
$ |
86,821 |
|
Adjusted EBITDA Margin |
|
|
25 |
% |
|
|
39 |
% |
|
|
57 |
% |
Adjusted Free Cash Flow Margin |
|
|
23 |
% |
|
|
37 |
% |
|
|
54 |
% |
Adjusted Free Cash Flow Conversion |
|
|
92 |
% |
|
|
94 |
% |
|
|
94 |
% |
(1) |
Represents Hi-Crush Transaction costs include fees paid to finance, legal, accounting and other advisors, employee retention and benefit costs, and other operational and corporate costs. |
||
(2) |
Represents loss on disposal of assets as a result of the fire at one of the |
||
(3) |
Represents insurance recovery (gain) deemed collectible and legally enforceable related to the fire at one of the |
||
(4) |
A reconciliation of the adjustment of these items used to calculate Adjusted Free Cash Flow to the Consolidated Financial Statements is included below. |
Atlas Energy Solutions Inc. – Supplemental Information
|
||||||||||||
|
|
Three Months Ended |
||||||||||
|
|
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
||||||
Maintenance Capital Expenditures, accrual basis reconciliation: |
|
|
|
|
|
|
||||||
Purchases of property, plant and equipment |
|
$ |
115,790 |
|
|
$ |
95,486 |
|
|
$ |
85,895 |
|
Changes in operating assets and liabilities associated with investing activities(1) |
|
|
16,134 |
|
|
|
(2,575 |
) |
|
|
20,996 |
|
Less: Growth capital expenditures and reconstruction of previously incurred growth capital expenditures |
|
|
(126,506 |
) |
|
|
(88,451 |
) |
|
|
(100,866 |
) |
Maintenance Capital Expenditures, accrual basis |
|
$ |
5,418 |
|
|
$ |
4,460 |
|
|
$ |
6,025 |
|
(1) |
Positive working capital changes reflect capital expenditures in the current period that will be paid in a future period. Negative working capital changes reflect capital expenditures incurred in a prior period but paid during the period presented. |
Atlas Energy Solutions Inc. – Supplemental Information
|
||||||||||||
|
|
Three Months Ended |
||||||||||
|
|
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
||||||
Current tax expense reconciliation: |
|
|
|
|
|
|
||||||
Income tax expense |
|
$ |
3,066 |
|
|
$ |
7,935 |
|
|
$ |
5,054 |
|
Less: deferred tax expense |
|
|
(2,758 |
) |
|
|
(7,521 |
) |
|
|
(5,819 |
) |
Current income tax expense (benefit) |
|
$ |
308 |
|
|
$ |
414 |
|
|
$ |
(765 |
) |
Atlas Energy Solutions Inc. – Supplemental Information
|
||||||||||||
|
|
Three Months Ended |
||||||||||
|
|
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
||||||
Cash interest expense reconciliation: |
|
|
|
|
|
|
||||||
Interest expense, net |
|
$ |
10,458 |
|
|
$ |
4,978 |
|
|
$ |
521 |
|
Less: Amortization of debt discount |
|
|
(1,083 |
) |
|
|
(407 |
) |
|
|
(120 |
) |
Less: Amortization of deferred financing costs |
|
|
(118 |
) |
|
|
(78 |
) |
|
|
(104 |
) |
Less: Interest income |
|
|
1,556 |
|
|
|
1,998 |
|
|
|
3,507 |
|
Cash interest expense |
|
$ |
10,813 |
|
|
$ |
6,491 |
|
|
$ |
3,804 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240805397647/en/
Investor Contact
Kyle Turlington
5918 W Courtyard Drive, Suite #500
T: 512-220-1200
IR@atlas.energy
Source: Atlas Energy Solutions Inc.
FAQ
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