KLX ENERGY SERVICES HOLDINGS, INC. REPORTS THIRD QUARTER 2024 RESULTS
KLX Energy Services Holdings reported Q3 2024 financial results with revenue of $189 million, representing a 4.8% increase from Q2 2024. The company posted a net loss of $(8) million and diluted loss per share of $(0.51). Adjusted EBITDA was $28 million with a 15% margin. The company maintained a cash balance of $83 million with total debt of $285 million. Management expects a Q4 2024 sequential revenue decline of 10% to 14% due to seasonality and customer budget exhaustion. By end market, completions contributed the largest share at 54% of revenue, followed by drilling at 21%, production at 16%, and intervention at 9%.
KLX Energy Services Holdings ha riportato i risultati finanziari del terzo trimestre del 2024, con un fatturato di 189 milioni di dollari, che rappresenta un incremento del 4,8% rispetto al secondo trimestre del 2024. L'azienda ha registrato una perdita netta di $(8) milioni e una perdita diluita per azione di $(0,51). EBITDA rettificato è stato di 28 milioni di dollari con un margine del 15%. L'azienda ha mantenuto un saldo di cassa di 83 milioni di dollari con un debito totale di 285 milioni di dollari. La direzione prevede una diminuzione sequenziale del fatturato nel quarto trimestre del 2024 compresa tra il 10% e il 14% a causa della stagionalità e dell'esaurimento dei budget dei clienti. Per quanto riguarda i mercati finali, le completazioni hanno contribuito con la quota più grande, pari al 54% del fatturato, seguite dalla perforazione al 21%, dalla produzione al 16% e dall'intervento al 9%.
KLX Energy Services Holdings reportó los resultados financieros del tercer trimestre de 2024, con ingresos de 189 millones de dólares, lo que representa un aumento del 4.8% en comparación con el segundo trimestre de 2024. La compañía registró una pérdida neta de $(8) millones y una pérdida diluida por acción de $(0.51). EBITDA ajustado fue de 28 millones de dólares con un margen del 15%. La compañía mantuvo un saldo de caja de 83 millones de dólares con una deuda total de 285 millones de dólares. La dirección espera una disminución secuencial de ingresos en el cuarto trimestre de 2024 del 10% al 14% debido a la estacionalidad y el agotamiento del presupuesto de los clientes. Por mercado final, las completaciones contribuyeron con la mayor parte, representando el 54% de los ingresos, seguidas de la perforación con un 21%, la producción con un 16% y la intervención con un 9%.
KLX 에너지 서비스 홀딩스는 2024년 3분기 재무 결과를 보고하며, 1억 8천 9백만 달러의 수익을 기록하여 2024년 2분기 대비 4.8% 증가하였습니다. 회사는 $(8)백만의 순손실을 기록하였고 주당 희석 손실은 $(0.51)입니다. 조정된 EBITDA는 2천 8백만 달러로, 15%의 마진을 보였습니다. 회사는 8천 3백만 달러의 현금 잔고와 2억 8천 5백만 달러의 총 부채를 유지하고 있습니다. 경영진은 2024년 4분기 수익이 계절성과 고객 예산 소진으로 인해 10%에서 14% 감소할 것으로 예상합니다. 최종 시장별로 보면, 완료가 수익의 54%로 가장 큰 비중을 차지하며, 이후 시추가 21%, 생산이 16%, 개입이 9%를 차지합니다.
KLX Energy Services Holdings a annoncé les résultats financiers du troisième trimestre 2024, avec un chiffre d'affaires de 189 millions de dollars, soit une augmentation de 4,8 % par rapport au deuxième trimestre 2024. L'entreprise a affiché une perte nette de $(8) millions et une perte diluée par action de $(0,51). EBITDA ajusté s'élevait à 28 millions de dollars avec une marge de 15 %. L'entreprise a maintenu un solde de trésorerie de 83 millions de dollars avec une dette totale de 285 millions de dollars. La direction s'attend à un déclin séquentiel des revenus de 10 % à 14 % au quatrième trimestre 2024 en raison de la saisonnalité et de l'épuisement du budget des clients. Par secteur de marché, les complétions ont contribué à la plus grande part à 54 % des revenus, suivies par le forage avec 21 %, la production avec 16 % et l'intervention avec 9 %.
KLX Energy Services Holdings hat die finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht, mit einem Umsatz von 189 Millionen Dollar, was einem Anstieg von 4,8 % im Vergleich zum 2. Quartal 2024 entspricht. Das Unternehmen wies einen Nettoverlust von $(8) Millionen aus und einen verwässerten Verlust je Aktie von $(0,51). Bereinigtes EBITDA betrug 28 Millionen Dollar mit einer Marge von 15 %. Das Unternehmen hielt einen Bargeldbestand von 83 Millionen Dollar und eine Gesamtverschuldung von 285 Millionen Dollar. Das Management erwartet im 4. Quartal 2024 einen sequenziellen Rückgang des Umsatzes um 10 % bis 14 % aufgrund von Saisonalität und Erschöpfung der Kundenbudgets. In Bezug auf den Endmarkt trugen die Fertigstellungen mit 54 % den größten Anteil am Umsatz, gefolgt von Bohrungen mit 21 %, der Produktion mit 16 % und Eingriffen mit 9 %.
- Revenue increased 4.8% quarter-over-quarter to $189 million
- Strong liquidity position of $126 million
- Adjusted EBITDA improved to $27.8 million from $27.0 million in Q2 2024
- Rocky Mountains segment revenue increased 10.6% sequentially
- Northeast/Mid-Con segment showed 7.2% revenue growth with 180% increase in operating income
- Net loss of $(8.2) million, slightly worse than Q2's $(8.0) million loss
- Expected Q4 revenue decline of 10-14% due to seasonality
- Southwest segment revenue decreased 2% with operating income down 73.1%
- Total debt remains high at $285.2 million
- Capital expenditures increased by $5.7 million to $21.0 million in Q3
Insights
The Q3 2024 results present a mixed picture for KLX Energy Services. Revenue increased
The forward guidance suggests near-term headwinds with an expected
The company's geographic diversification helps stabilize margins, but challenging market conditions persist with continued rig count declines. The high debt load remains a significant concern, though liquidity position of
The oilfield services sector context is important here. Despite KLX achieving its third-highest revenue per US land rig since the 2020 merger, industry headwinds persist. The
The revenue mix shows heavy reliance on completion services at
Third Quarter 2024 Financial Highlights
- Revenue of
$189 million - Net loss of
and diluted loss per share of$(8) million $(0.51) - Adjusted EBITDA of
$28 million - Net loss margin of (4)%
- Adjusted EBITDA margin of
15% - Cash balance of
$83 million - Total Debt and Net Debt of
and$285 million , respectively$203 million - Liquidity of
, consisting of approximately$126 million of cash and approximately$83 million of availability not borrowed under the September 2024 asset-based revolving credit facility (the "ABL Facility") borrowing base certificate$43 million
See "Non-GAAP Financial Measures" at the end of this release for a discussion of Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net (Loss) Income, Adjusted Diluted (Loss) Earnings per share, Unlevered and Levered Free Cash Flow, Net Working Capital, Net Debt, Net Leverage Ratio and their reconciliations to the most directly comparable financial measure calculated and presented in accordance with
Chris Baker, KLX President and Chief Executive Officer, said, "I am very proud of our entire team for their outstanding performance during the third quarter. Facing continued market volatility, consolidation of our blue-chip customers and persistent rig count declines over the past few years, we generated our third-highest level of quarterly revenue per average US-operated land rig since the KLX-QES merger in 2020.
"We are pleased to report that our third quarter revenue and Adjusted EBITDA results were at the top-end of our guidance ranges. Our geographic and product and service line ("PSL") diversification has driven margin sustainability in the face of market volatility, which we believe demonstrates the strength and resiliency of the KLX platform. Additionally, our leading presence in extended reach laterals, completion technologies, and production and intervention services should continue to yield differentiated performance.
"Looking forward, based on seasonality, anticipated customer budget exhaustion and the upcoming calendar that includes the Christmas and New Year's holidays in the middle of the work week, we expect a fourth quarter 2024 sequential revenue decline of
"More importantly, we are currently in discussions with many of our customers on their 2025 drilling, completion and production programs. These conversations have been very constructive and indicate incremental positive momentum for 2025 with both new and existing customers, giving us cautious optimism as we begin our budgeting for next year," concluded Baker.
Third Quarter 2024 Financial Results
Revenue for the third quarter of 2024 totaled
Net loss for the third quarter of 2024 was
Third Quarter 2024 Segment Results
The Company reports revenue, operating income (loss) and Adjusted EBITDA through three geographic business segments: Rocky Mountains, Southwest and Northeast/Mid-Con. The Company reports operating activities not attributable to an individual geographic business segment through the Corporate and other segment.
- Rocky Mountains: Revenue, operating income and Adjusted EBITDA for the Rocky Mountains segment were
,$67.9 million and$9.7 million , respectively, for the third quarter of 2024. Third quarter revenue represents a$16.6 million 10.6% sequential increase over the second quarter of 2024 largely due to incremental activity in Coiled Tubing and Directional Drilling, which offset modest declines in activity within our Tech Services and Rentals PSLs. Segment operating income and Adjusted EBITDA decreased (7.6)% and (3.5)%, respectively, driven by a short-term shift in PSL mix. - Southwest: Revenue, operating income and Adjusted EBITDA for the Southwest segment, which includes the Permian and
South Texas , were ,$68.6 million and$0.7 million , respectively, for the third quarter of 2024. Third quarter revenue represents an approximately (2)% sequential decrease over the second quarter of 2024, mostly related to Tech Services, Frac Rentals and Flowback. Segment operating income and Adjusted EBITDA decreased (73.1)% and (16.3)%, respectively, as a function of the above decrease in revenue and a short-term shift in PSL mix.$8.7 million - Northeast/Mid-Con: Revenue, operating income and Adjusted EBITDA for the Northeast/Mid-Con segment were
,$52.4 million and$2.0 million , respectively, for the third quarter of 2024. Third quarter revenue represents a$10.9 million 7.2% sequential increase over the second quarter of 2024 due to increased completions activity. Segment operating income and Adjusted EBITDA increased180.0% and70.3% , respectively, largely due to reduced whitespace in our completion PSLs. - Corporate and other: Operating loss and Adjusted EBITDA loss for the Corporate and other segment were
and$11.3 million , respectively, for the third quarter of 2024. Segment operating loss and Adjusted EBITDA loss increased sequentially (22.8)% and (20.0)%, respectively, largely due to increased professional service fees.$8.4 million
The following is a tabular summary of revenue, operating income (loss) and Adjusted EBITDA (loss) for the third quarter ended September 30, 2024, the second quarter ended June 30, 2024 and the third quarter ended September 30, 2023 ($ in millions).
Three Months Ended | ||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | ||||
Revenue: | ||||||
Rocky Mountains | $ 67.9 | $ 61.4 | $ 77.0 | |||
Southwest | 68.6 | 69.9 | 77.8 | |||
Northeast/Mid-Con | 52.4 | 48.9 | 65.8 | |||
Total revenue | $ 188.9 | $ 180.2 | $ 220.6 | |||
Three Months Ended | ||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | ||||
Operating income (loss): | ||||||
Rocky Mountains | $ 9.7 | $ 10.5 | $ 17.7 | |||
Southwest | 0.7 | 2.6 | 4.8 | |||
Northeast/Mid-Con | 2.0 | (2.5) | 5.2 | |||
Corporate and other | (11.3) | (9.2) | (11.3) | |||
Total operating income (loss) | $ 1.1 | $ 1.4 | $ 16.4 | |||
Three Months Ended | ||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | ||||
Adjusted EBITDA (loss) | ||||||
Rocky Mountains | $ 16.6 | $ 17.2 | $ 23.3 | |||
Southwest | 8.7 | 10.4 | 11.8 | |||
Northeast/Mid-Con | 10.9 | 6.4 | 11.4 | |||
Segment total | 36.2 | 34.0 | 46.5 | |||
Corporate and other | (8.4) | (7.0) | (9.8) | |||
Total Adjusted EBITDA(1) | $ 27.8 | $ 27.0 | $ 36.7 |
(1) | Excludes one-time costs, as defined in the Reconciliation of Consolidated Net (Loss) Income to Adjusted EBITDA table below, non-cash compensation expense and non-cash asset impairment expense. |
Balance Sheet and Liquidity
Total debt outstanding as of September 30, 2024 was
Net Working Capital as of September 30, 2024 was
Other Financial Information
Capital expenditures were
As of September 30, 2024, we had
Conference Call Information
KLX will conduct its third quarter 2024 conference call, which can be accessed via dial-in or webcast, on Friday, November 1, 2024 at 11:00 a.m. Eastern Time (10:00 a.m. Central Time) by dialing 1-201-389-0867 and asking for the KLX call at least 10 minutes prior to the start time, or by logging onto the webcast at https://investor.klx.com/events-and-presentations/events. For those who cannot listen to the live call, a replay will be available through November 15, 2024, and may be accessed by dialing 1-201-612-7415 and using passcode 13749567#. Also, an archive of the webcast will be available shortly after the call at https://investor.klx.com/events-and-presentations/events for 90 days. Please submit any questions for management prior to the call via email to KLXE@dennardlascar.com.
About KLX Energy Services Holdings, Inc.
KLX is a growth-oriented provider of diversified oilfield services to leading onshore oil and natural gas exploration and production companies operating in both conventional and unconventional plays in all of the active major basins throughout
Forward-Looking Statements and Cautionary Statements
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements to encourage companies to provide prospective information to investors. This news release (and any oral statements made regarding the subjects of this release, including on the conference call announced herein) includes forward-looking statements that reflect our current expectations and projections about our future results, performance and prospects. Forward-looking statements include all statements that are not historical in nature and are not current facts. When used in this news release (and any oral statements made regarding the subjects of this release, including on the conference call announced herein), the words "believe," "expect," "plan," "intend," "anticipate," "estimate," "predict," "potential," "continue," "may," "might," "should," "could," "will" or the negative of these terms or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events with respect to, among other things: our operating cash flows; the availability of capital and our liquidity; our ability to renew and refinance our debt; our future revenue, income and operating performance; our ability to sustain and improve our utilization, revenue and margins; our ability to maintain acceptable pricing for our services; future capital expenditures; our ability to finance equipment, working capital and capital expenditures; our ability to execute our long-term growth strategy and to integrate our acquisitions; our ability to successfully develop our research and technology capabilities and implement technological developments and enhancements; and the timing and success of strategic initiatives and special projects.
Forward-looking statements are not assurances of future performance and actual results could differ materially from our historical experience and our present expectations or projections. These forward-looking statements are based on management's current expectations and beliefs, forecasts for our existing operations, experience, expectations and perception of historical trends, current conditions, anticipated future developments and their effect on us and other factors believed to be appropriate. Although management believes the expectations and assumptions reflected in these forward-looking statements are reasonable as and when made, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all). Our forward-looking statements involve significant risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control. Known material factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, risks associated with the following: a decline in demand for our services, including due to overcapacity and other competitive factors affecting our industry; the cyclical nature and volatility of the oil and gas industry, which impacts the level of exploration, production and development activity and spending patterns by oil and natural gas exploration and production companies; a decline in, or substantial volatility of, crude oil and gas commodity prices, which generally leads to decreased spending by our customers and negatively impacts drilling, completion and production activity; inflation; increases in interest rates; the ongoing war in
Contacts: | KLX Energy Services Holdings, Inc. |
Keefer M. Lehner, EVP & CFO | |
832-930-8066 | |
Dennard Lascar Investor Relations | |
Ken Dennard / Natalie Hairston | |
713-529-6600 | |
KLX Energy Services Holdings, Inc. | |||||
Three Months Ended | |||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | |||
Revenues | $ 188.9 | $ 180.2 | $ 220.6 | ||
Costs and expenses: | |||||
Cost of sales | 142.3 | 136.0 | 166.2 | ||
Depreciation and amortization | 23.9 | 23.1 | 18.9 | ||
Selling, general and administrative | 21.2 | 19.3 | 18.6 | ||
Research and development costs | 0.4 | 0.3 | 0.4 | ||
Impairment and other charges | — | 0.1 | — | ||
Bargain purchase gain | — | — | 0.1 | ||
Operating income | 1.1 | 1.4 | 16.4 | ||
Non-operating expense: | |||||
Interest income | (0.7) | (0.6) | (0.7) | ||
Interest expense | 9.8 | 9.8 | 9.2 | ||
Net (loss) income before income tax | (8.0) | (7.8) | 7.9 | ||
Income tax expense | 0.2 | 0.2 | 0.3 | ||
Net (loss) income | $ (8.2) | $ (8.0) | $ 7.6 | ||
Net (loss) income per common share: | |||||
Basic | $ (0.51) | $ (0.49) | $ 0.47 | ||
Diluted | $ (0.51) | $ (0.49) | $ 0.47 | ||
Weighted average common shares: | |||||
Basic | 16.2 | 16.2 | 16.0 | ||
Diluted | 16.2 | 16.2 | 16.1 |
KLX Energy Services Holdings, Inc. | |||
September 30, 2024 | December 31, 2023 | ||
(Unaudited) | |||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 82.7 | $ 112.5 | |
Accounts receivable–trade, net of allowance of | 124.8 | 127.0 | |
Inventories, net | 32.7 | 33.5 | |
Prepaid expenses and other current assets | 14.6 | 17.3 | |
Total current assets | 254.8 | 290.3 | |
Property and equipment, net(1) | 207.1 | 220.6 | |
Operating lease assets | 18.7 | 22.3 | |
Intangible assets, net | 1.5 | 1.8 | |
Other assets | 4.7 | 4.8 | |
Total assets | $ 486.8 | $ 539.8 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 78.5 | $ 87.9 | |
Accrued interest | 11.4 | 4.6 | |
Accrued liabilities | 42.6 | 42.7 | |
Current portion of long-term debt | 50.0 | — | |
Current portion of operating lease obligations | 6.7 | 6.9 | |
Current portion of finance lease obligations | 15.9 | 22.0 | |
Total current liabilities | 205.1 | 164.1 | |
Long-term debt | 235.2 | 284.3 | |
Long-term operating lease obligations | 12.9 | 16.0 | |
Long-term finance lease obligations | 29.2 | 36.2 | |
Other non-current liabilities | 1.9 | 0.4 | |
Commitments, contingencies and off-balance sheet arrangements | |||
Stockholders' equity: | |||
Common stock, | 0.2 | 0.1 | |
Additional paid-in capital | 555.9 | 553.4 | |
Treasury stock, at cost, 0.5 shares and 0.4 shares | (5.8) | (5.3) | |
Accumulated deficit | (547.8) | (509.4) | |
Total stockholders' equity | 2.5 | 38.8 | |
Total liabilities and stockholders' equity | $ 486.8 | $ 539.8 |
(1) | Includes right-of-use assets - finance leases |
KLX Energy Services Holdings, Inc.
Additional Selected Operating Data
(Unaudited)
Non-GAAP Financial Measures
This release includes Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net (Loss) Income, Adjusted Diluted (Loss) Earnings per share, Unlevered and Levered Free Cash Flow, Net Working Capital, Net Debt and Net Leverage Ratio measures. Each of the metrics are "non-GAAP financial measures" as defined in Regulation G of the Securities Exchange Act of 1934.
Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. Adjusted EBITDA is not a measure of net earnings or cash flows as determined by GAAP. We define Adjusted EBITDA as net earnings (loss) before interest, taxes, depreciation and amortization, further adjusted for (i) goodwill and/or long-lived asset impairment charges, (ii) stock-based compensation expense, (iii) restructuring charges, (iv) transaction and integration costs related to acquisitions and (v) other expenses or charges to exclude certain items that we believe are not reflective of the ongoing performance of our business. Adjusted EBITDA is used to calculate the Company's leverage ratio, consistent with the terms of the Company's ABL Facility.
We believe Adjusted EBITDA is useful because it allows us to supplement the GAAP measures in order to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods or capital structure. We exclude the items listed above 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. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net (loss) income as determined in accordance with GAAP, or as an indicator of our operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA. Our computations of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies.
Adjusted EBITDA margin is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. Adjusted EBITDA margin is not a measure of net earnings or cash flows as determined by GAAP. Adjusted EBITDA margin is defined as the quotient of Adjusted EBITDA and total revenue. We believe Adjusted EBITDA margin is useful because it allows us to supplement the GAAP measures in order to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods or capital structure, as a percentage of revenues.
We define Adjusted Net (Loss) Income as consolidated net (loss) income adjusted for (i) goodwill and/or long-lived asset impairment charges, (ii) restructuring charges, (iii) transaction and integration costs related to acquisitions and (iv) other expenses or charges to exclude certain items that we believe are not reflective of the ongoing performance of our business. We believe Adjusted Net (Loss) Income is useful because it allows us to exclude non-recurring items in evaluating our operating performance.
We define Adjusted Diluted (Loss) Earnings per share as the quotient of Adjusted Net (Loss) Income and diluted weighted average common shares. We believe that Adjusted Diluted (Loss) Earnings per share provides useful information to investors because it allows us to exclude non-recurring items in evaluating our operating performance on a diluted per share basis.
We define Unlevered Free Cash Flow as net cash provided by operating activities less capital expenditures and proceeds from sale of property and equipment plus interest expense. We define Levered Free Cash Flow as net cash provided by operating activities less capital expenditures and proceeds from sale of property and equipment. Our management uses Unlevered and Levered Free Cash Flow to assess the Company's liquidity and ability to repay maturing debt, fund operations and make additional investments. We believe that each of Unlevered and Levered Free Cash Flow provide useful information to investors because it is an important indicator of the Company's liquidity, including our ability to reduce Net Debt and make strategic investments.
Net Working Capital is calculated as current assets, excluding cash, less current liabilities, excluding current portion of long-term debt, accrued interest, operating lease obligations and finance lease obligations. We believe that Net Working Capital provides useful information to investors because it is an important indicator of the Company's liquidity.
We define Net Debt as total debt less cash and cash equivalents. We believe that Net Debt provides useful information to investors because it is an important indicator of the Company's indebtedness.
We define Net Leverage Ratio as Net Debt divided by Annualized Adjusted EBITDA. We believe that Net Leverage Ratio provides useful information to investors because it is an important indicator of the Company's indebtedness in relation to our operating performance.
The following tables present a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures for the periods indicated:
KLX Energy Services Holdings, Inc. | |||||
Three Months Ended | |||||
September | June 30, | September | |||
Consolidated net (loss) income | $ (8.2) | $ (8.0) | $ 7.6 | ||
Income tax expense | 0.2 | 0.2 | 0.3 | ||
Interest expense, net | 9.1 | 9.2 | 8.5 | ||
Operating income | 1.1 | 1.4 | 16.4 | ||
Bargain purchase gain | — | — | 0.1 | ||
Impairment and other charges (1) | — | 0.1 | — | ||
One-time net costs, excluding impairment and other charges (1) | 1.8 | 1.4 | 0.5 | ||
Adjusted operating income | 2.9 | 2.9 | 17.0 | ||
Depreciation and amortization | 23.9 | 23.1 | 18.9 | ||
Non-cash compensation | 1.0 | 1.0 | 0.8 | ||
Adjusted EBITDA | $ 27.8 | $ 27.0 | $ 36.7 |
* | Previously announced quarterly numbers may not sum to the year-end total due to rounding. |
(1) | The one-time costs during the third quarter of 2024 relate to professional services and other charges. |
KLX Energy Services Holdings, Inc. | |||||
Three Months Ended | |||||
September | June 30, | September 30, | |||
Consolidated net (loss) income | $ (8.2) | $ (8.0) | $ 7.6 | ||
Revenue | 188.9 | 180.2 | 220.6 | ||
Consolidated net (loss) income margin percentage | (4.3) % | (4.4) % | 3.4 % |
(1) | Consolidated net (loss) income margin is defined as the quotient of consolidated net (loss) income and total revenue. |
KLX Energy Services Holdings, Inc. | |||||
Three Months Ended | |||||
September | June 30, | September | |||
Adjusted EBITDA | $ 27.8 | $ 27.0 | $ 36.7 | ||
Revenue | 188.9 | 180.2 | 220.6 | ||
Adjusted EBITDA Margin Percentage | 14.7 % | 15.0 % | 16.6 % |
(1) | Adjusted EBITDA margin is defined as the quotient of Adjusted EBITDA and total revenue. Adjusted EBITDA is net (loss) income excluding one-time costs (as defined above), depreciation and amortization expense, non-cash compensation expense and non-cash asset impairment expense. |
KLX Energy Services Holdings, Inc. | |||||
Three Months Ended | |||||
September | June 30, | September 30, 2023 | |||
Rocky Mountains operating income | $ 9.7 | $ 10.5 | $ 17.7 | ||
One-time costs (1) | — | — | — | ||
Adjusted operating income | 9.7 | 10.5 | 17.7 | ||
Depreciation and amortization expense | 6.9 | 6.7 | 5.6 | ||
Non-cash compensation | — | — | — | ||
Rocky Mountains Adjusted EBITDA | $ 16.6 | $ 17.2 | $ 23.3 |
(1) | One-time costs are defined in the Reconciliation of Consolidated Net (Loss) Income to Adjusted EBITDA table above. For purposes of segment reconciliation, one-time costs also include impairment and other charges. |
KLX Energy Services Holdings, Inc. | |||||
Three Months Ended | |||||
September | June 30, | September | |||
Southwest operating income | $ 0.7 | $ 2.6 | $ 4.8 | ||
One-time costs (1) | 0.2 | 0.4 | 0.2 | ||
Adjusted operating income | 0.9 | 3.0 | 5.0 | ||
Depreciation and amortization expense | 7.8 | 7.4 | 6.8 | ||
Non-cash compensation | — | — | — | ||
Southwest Adjusted EBITDA | $ 8.7 | $ 10.4 | $ 11.8 |
(1) | One-time costs are defined in the Reconciliation of Consolidated Net (Loss) Income to Adjusted EBITDA table above. For purposes of segment reconciliation, one-time costs also include impairment and other charges. |
KLX Energy Services Holdings, Inc. | |||||
Three Months Ended | |||||
September | June 30, | September | |||
Northeast/Mid-Con operating income (loss) | $ 2.0 | $ (2.5) | $ 5.2 | ||
One-time costs (1) | — | 0.2 | — | ||
Adjusted operating income (loss) | 2.0 | (2.3) | 5.2 | ||
Depreciation and amortization expense | 8.9 | 8.6 | 6.1 | ||
Non-cash compensation | — | 0.1 | 0.1 | ||
Northeast/Mid-Con Adjusted EBITDA | $ 10.9 | $ 6.4 | $ 11.4 |
(1) | One-time costs are defined in the Reconciliation of Consolidated Net (Loss) Income to Adjusted EBITDA table above. For purposes of segment reconciliation, one-time costs also include impairment and other charges. |
KLX Energy Services Holdings, Inc. | |||||
Three Months Ended | |||||
September | June 30, | September | |||
Corporate and other operating loss | $ (11.3) | $ (9.2) | $ (11.3) | ||
Bargain purchase gain | — | — | 0.1 | ||
Impairment and other charges | — | 0.1 | — | ||
One-time net costs, excluding impairment and other charges (1) | 1.6 | 0.8 | 0.3 | ||
Adjusted operating loss | (9.7) | (8.3) | (10.9) | ||
Depreciation and amortization expense | 0.3 | 0.4 | 0.4 | ||
Non-cash compensation | 1.0 | 0.9 | 0.7 | ||
Corporate and other Adjusted EBITDA loss | $ (8.4) | $ (7.0) | $ (9.8) |
(1) | One-time costs are defined in the Reconciliation of Consolidated Net (Loss) Income to Adjusted EBITDA table above. For purposes of segment reconciliation, one-time costs also include impairment and other charges. |
KLX Energy Services Holdings, Inc. | |||||
Three Months Ended | |||||
September | June 30, | September | |||
Rocky Mountains | |||||
Operating income | $ 9.7 | $ 10.5 | $ 17.7 | ||
Revenue | 67.9 | 61.4 | 77.0 | ||
Segment operating income margin percentage | 14.3 % | 17.1 % | 23.0 % | ||
Southwest | |||||
Operating income | 0.7 | 2.6 | 4.8 | ||
Revenue | 68.6 | 69.9 | 77.8 | ||
Segment operating income margin percentage | 1.0 % | 3.7 % | 6.2 % | ||
Northeast/Mid-Con | |||||
Operating income (loss) | 2.0 | (2.5) | 5.2 | ||
Revenue | 52.4 | 48.9 | 65.8 | ||
Segment operating income (loss) margin percentage | 3.8 % | (5.1) % | 7.9 % |
(1) | Segment operating income margin is defined as the quotient of segment operating income (loss) and segment revenue. |
KLX Energy Services Holdings, Inc. | |||||
Three Months Ended | |||||
September | June 30, | June 30, | |||
Rocky Mountains | |||||
Adjusted EBITDA | $ 16.6 | $ 17.2 | $ 23.3 | ||
Revenue | 67.9 | 61.4 | 77.0 | ||
Adjusted EBITDA Margin Percentage | 24.4 % | 28.0 % | 30.3 % | ||
Southwest | |||||
Adjusted EBITDA | 8.7 | 10.4 | 11.8 | ||
Revenue | 68.6 | 69.9 | 77.8 | ||
Adjusted EBITDA Margin Percentage | 12.7 % | 14.9 % | 15.2 % | ||
Northeast/Mid-Con | |||||
Adjusted EBITDA | 10.9 | 6.4 | 11.4 | ||
Revenue | 52.4 | 48.9 | 65.8 | ||
Adjusted EBITDA Margin Percentage | 20.8 % | 13.1 % | 17.3 % |
(1) | Segment Adjusted EBITDA margin is defined as the quotient of Segment Adjusted EBITDA and total segment revenue. Segment Adjusted EBITDA is segment operating income (loss) excluding one-time costs (as defined above), non-cash compensation expense and non-cash asset impairment expense. |
KLX Energy Services Holdings, Inc. | |||||
Three Months Ended | |||||
September | June 30, | September | |||
Consolidated net (loss) income | $ (8.2) | $ (8.0) | $ 7.6 | ||
Bargain purchase gain | — | — | 0.1 | ||
Impairment and other charges | — | 0.1 | — | ||
One-time costs(1) | 1.8 | 1.4 | 0.5 | ||
Adjusted Net (Loss) Income | $ (6.4) | $ (6.5) | $ 8.2 | ||
Diluted weighted average common shares | 16.2 | 16.2 | 16.1 | ||
Adjusted Diluted (Loss) Earnings per share(2) | $ (0.40) | $ (0.40) | $ 0.51 |
* | Previously announced quarterly numbers may not sum to the year-end total due to rounding. |
(1) | The one-time costs during the third quarter of 2024 relate to professional services and other charges. |
(2) | Adjusted Diluted (Loss) Earnings per share is defined as the quotient of Adjusted Net (Loss) Income and diluted weighted average common shares. |
KLX Energy Services Holdings, Inc. | |||||
Three Months Ended | |||||
September | June 30, | September | |||
Net cash flow provided by operating activities | $ 16.8 | $ 22.2 | $ 25.6 | ||
Capital expenditures | (21.0) | (15.3) | (17.8) | ||
Proceeds from sale of property and equipment | 2.6 | 3.3 | 4.8 | ||
Levered Free Cash Flow | (1.6) | 10.2 | 12.6 | ||
Add: Interest expense, net | 9.1 | 9.2 | 8.5 | ||
Unlevered Free Cash Flow | $ 7.5 | $ 19.4 | $ 21.1 |
KLX Energy Services Holdings, Inc. | |||||
As of | |||||
September | June 30, | December | |||
Current assets | $ 254.8 | $ 251.3 | $ 290.3 | ||
Less: Cash | 82.7 | 86.9 | 112.5 | ||
Net current assets | 172.1 | 164.4 | 177.8 | ||
Current liabilities | 205.1 | 151.7 | 164.1 | ||
Less: Current portion of long-term debt | 50.0 | — | — | ||
Less: Accrued interest | 11.4 | 4.6 | 4.6 | ||
Less: Operating lease obligations | 6.7 | 7.0 | 6.9 | ||
Less: Finance lease obligations | 15.9 | 17.9 | 22.0 | ||
Net current liabilities | 121.1 | 122.2 | 130.6 | ||
Net Working Capital | $ 51.0 | $ 42.2 | $ 47.2 |
KLX Energy Services Holdings, Inc. | |||||
As of | |||||
September | June 30, | December | |||
Total Debt | $ 285.2 | $ 284.9 | $ 284.3 | ||
Cash | 82.7 | 86.9 | 112.5 | ||
Net Debt | $ 202.5 | $ 198.0 | $ 171.8 |
(1) | Net Debt is defined as total debt less cash and cash equivalents. |
KLX Energy Services Holdings, Inc. | |||||
As of | |||||
September | June 30, | December | |||
Adjusted EBITDA | $ 27.8 | $ 27.0 | $ 23.0 | ||
Multiply by four quarters | 4 | 4 | 4 | ||
Annualized Adjusted EBITDA | 111.2 | 108.0 | 92.0 | ||
Net Debt | 202.5 | 198.0 | 171.8 | ||
Net Leverage Ratio | 1.8 | 1.8 | 1.9 |
(1) | Net Leverage Ratio is defined as Net Debt divided by Annualized Adjusted EBITDA. |
View original content:https://www.prnewswire.com/news-releases/klx-energy-services-holdings-inc-reports-third-quarter-2024-results-302293410.html
SOURCE KLX Energy Services Holdings, Inc.
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