Nuverra Announces Second Quarter 2021 Results
Nuverra Environmental Solutions (NYSE American: NES) reported a revenue increase to $24.8 million for Q2 2021, up from $24.5 million in Q2 2020. The net loss decreased to $3.9 million, aided by a $4.0 million PPP loan forgiveness. However, adjusted EBITDA fell to a loss of $0.2 million, down from a profit of $2.5 million, attributed to surging operational costs. Total liquidity stood at $12.4 million. Year-to-date revenue dropped by 22.4%, totaling $48.4 million, reflecting reduced water transport and disposal services amidst ongoing inflationary pressures and low drilling activities.
- Revenue for Q2 2021 increased by 1% to $24.8 million compared to Q2 2020.
- Net loss reduced to $3.9 million from $6.8 million year-over-year.
- Liquidity available as of June 30, 2021, was $12.4 million.
- Adjusted EBITDA for Q2 2021 saw a significant decline to a loss of $0.2 million from a profit of $2.5 million.
- Year-to-date revenue dropped by 22.4%, reflecting decreased service demand.
- Continued inflationary pressures, including rising fuel and labor costs, negatively impacting margin recovery efforts.
Nuverra Environmental Solutions, Inc. (NYSE American: NES) (“Nuverra” or the “Company”) today announced financial and operating results for the second quarter and six months ended June 30, 2021.
SUMMARY OF FINANCIAL RESULTS
-
Revenue for the second quarter of 2021 was
$24.8 million compared to$24.5 million for the second quarter of 2020. -
Net loss for the second quarter of 2021 was
$3.9 million compared to a net loss of$6.8 million for the second quarter of 2020, primarily due to a gain of$4.0 million on the forgiveness of our Paycheck Protection Program (“PPP”) loan. -
Adjusted EBITDA for the second quarter of 2021 was a loss of
$0.2 million compared to a profit of$2.5 million for the second quarter of 2020, mostly driven by higher operating costs which include fuel and driver costs. -
Total liquidity available as of June 30, 2021 was
$12.4 million including$5.0 million available under the Company’s undrawn operating line of credit. -
Principal payments on debt and finance lease payments during the six months ended June 30, 2021 totaled
$1.6 million . -
The Company invested
$1.3 million in gross capital expenditures during the six months ended June 30, 2021.
“As we climb out of the activity decline caused by the COVID-19 pandemic, we continue our ongoing efforts to lower our cost structure. To better reflect the markets we serve, we are taking steps to rationalize our fleet and facility footprint and continuing our work on increasing efficiency in our service dispatch processes and other back office systems. We expect our G&A expense to be lower in the second half of 2021. While we are focused on recovering pricing lost during the COVID-19 induced downturn, we face significant inflationary pressures that offset those hard fought price increases, including higher wage costs due to competition for employees and fuel prices. Finally, I would like to recognize that throughout all of the changes our industry has undergone, the people at Nuverra continue to safely execute excellent customer service. I would like to thank all of the great people at Nuverra for their hard work, dedication and focus throughout all of the challenges we have faced over the past year.” said Pat Bond, Chief Executive Officer.
SECOND QUARTER 2021 RESULTS
For the second quarter of 2021 when compared to the second quarter of 2020, revenue increased by
The Rocky Mountain division has experienced a significant slowdown as compared to the prior year, as evidenced by the rig count declining
Revenues for the Northeast division decreased by
The Southern division usually has experienced a lesser impact relative to the other business units from the impact of the COVID-19 downturn, driven by its focus on servicing customers who are focused on dry natural gas, which has experienced a relatively smaller impact from the downturn in commodity prices. Revenues for the Southern division remained flat during the second quarter of 2021 as compared to the second quarter of 2020, primarily due to lower disposal well volumes, whether connected to the pipeline or not, resulting from an activity slowdown in the region. Rig count increased
Total costs and expenses for the second quarter of 2021 and 2020 were
Net loss for the second quarter of 2021 was
Adjusted EBITDA for the second quarter of 2021 was a
YEAR-TO-DATE (“YTD”) RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2021
When compared to the six months ended 2020, 2021 revenue decreased by
The Rocky Mountain division experienced a significant slowdown, with rig count declining
Revenues for the Northeast division decreased by
Revenues for the Southern division decreased by
Total costs and expenses for the six months ended June 30, 2021 and 2020 were
Net loss for the six months ended June 30, 2021 was
Adjusted EBITDA for six months ended June 30, 2021 was
CASH FLOW AND LIQUIDITY
Net cash used in operating activities for the six months ended June 30, 2021 was
Total liquidity available as of June 30, 2021 was
About Nuverra
Nuverra Environmental Solutions, Inc. provides water logistics and oilfield services to customers focused on the development and ongoing production of oil and natural gas from shale formations in the United States. Our services include the delivery, collection, and disposal of solid and liquid materials that are used in and generated by the drilling, completion, and ongoing production of shale oil and natural gas. We provide a suite of solutions to customers who demand safety, environmental compliance and accountability from their service providers. Find additional information about Nuverra in documents filed with the U.S. Securities and Exchange Commission (“SEC”) at http://www.sec.gov.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. You can identify these and other forward-looking statements by the use of words such as “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “may,” “might,” “will,” “should,” “would,” “could,” “potential,” “future,” “continue,” “ongoing,” “forecast,” “project,” “target” or similar expressions, and variations or negatives of these words.
These statements relate to our expectations for future events and time periods. All statements other than statements of historical fact are statements that could be deemed to be forward-looking statements, and any forward-looking statements contained herein are based on information available to us as of the date of this press release and our current expectations, forecasts and assumptions, and involve a number of risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date. Future performance cannot be ensured, and actual results may differ materially from those in the forward-looking statements. Some factors that could cause actual results to differ include, among others: the severity, magnitude and duration of the coronavirus disease 2019 ("COVID-19") pandemic and commodity market disruptions; changes in commodity prices; fluctuations in consumer trends, pricing pressures, transportation costs, changes in raw material or labor prices or rates related to our business and changing regulations or political developments in the markets in which we operate; risks associated with our indebtedness, including changes to interest rates, decreases in our borrowing availability, our ability to manage our liquidity needs and to comply with covenants under our credit facilities, including as a result of COVID-19 and oil price declines; the loss of one or more of our larger customers; delays in customer payment of outstanding receivables and customer bankruptcies; natural disasters, such as hurricanes, earthquakes and floods, pandemics (including COVID-19), acts of terrorism, or extreme weather conditions, that may impact our business locations, assets, including wells or pipelines, or distribution channels, or which otherwise disrupt our customers' operations or the markets we serve; disruptions impacting crude oil and natural gas transportation, processing, refining, and export systems, including vacated easements, environmental impact studies, forced shutdown by governmental agencies and litigation affecting the Dakota Access Pipeline; bans on drilling and fracking leases and permits on federal land; our ability to attract and retain key executives and qualified employees in strategic areas of our business; our ability to attract and retain a sufficient number of qualified truck drivers; the unfavorable change to credit and payment terms due to changes in industry condition or our financial condition, which could constrain our liquidity and reduce availability under our operating line of credit; higher than forecasted capital expenditures to maintain and repair our fleet of trucks, tanks, pipeline, equipment and disposal wells; our ability to control costs and expenses; changes in customer drilling, completion and production activities, operating methods and capital expenditure plans, including impacts due to low oil and/or natural gas prices, shut-in production, decline in operating drilling rigs, closures or pending closures of third-party pipelines or the economic or regulatory environment; risks associated with the limited trading volume of our common stock on the NYSE American Stock Exchange, including potential fluctuation in the trading prices of our common stock; risks and uncertainties associated with the potential for a further appeal of the order confirming our previously completed plan of reorganization; risks associated with the reliance on third-party analyst and expert market projections and data for the markets in which we operate that is utilized in our business strategy; present and possible future claims, litigation or enforcement actions or investigations; risks associated with changes in industry practices and operational technologies; risks associated with the operation, construction, development and closure of salt water disposal wells, solids and liquids transportation assets, landfills and pipelines, including access to additional locations and rights-of-way, permitting and licensing, environmental remediation obligations, unscheduled delays or inefficiencies and reductions in volume due to micro- and macro-economic factors or the availability of less expensive alternatives; the effects of competition in the markets in which we operate, including the adverse impact of competitive product announcements or new entrants into our markets and transfers of resources by competitors into our markets; changes in economic conditions in the markets in which we operate or in the world generally, including as a result of political uncertainty; reduced demand for our services due to regulatory or other influences related to extraction methods such as hydraulic fracturing, shifts in production among shale areas in which we operate or into shale areas in which we do not currently have operations, and shifts to reuse of water and water sharing in completion activities; the unknown future impact of changes in laws and regulation on waste management and disposal activities, including those impacting the delivery, storage, collection, transportation, and disposal of waste products, as well as the use or reuse of recycled or treated products or byproducts; and risks involving developments in environmental or other governmental laws and regulations in the markets in which we operate and our ability to effectively respond to those developments including laws and regulations relating to oil and natural gas extraction businesses, particularly relating to water usage, and the disposal and transportation of liquid and solid wastes.
The forward-looking statements contained, or incorporated by reference, herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s views as of the date of this press release. The Company undertakes no obligation to update any such forward-looking statements, whether as a result of new information, future events, changes in expectations or otherwise. Additional risks and uncertainties are disclosed from time to time in the Company’s filings with the SEC, including our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.
NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES
|
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
June 30, |
|
June 30, |
|||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
Revenue: |
|
|
|
|
|
|
|
|||||||||
Service revenue |
$ |
23,113 |
|
|
$ |
22,956 |
|
|
$ |
45,439 |
|
|
$ |
57,427 |
|
|
Rental revenue |
1,661 |
|
|
1,510 |
|
|
3,000 |
|
|
4,981 |
|
|||||
Total revenue |
24,774 |
|
|
24,466 |
|
|
48,439 |
|
|
62,408 |
|
|||||
Costs and expenses: |
|
|
|
|
|
|
|
|||||||||
Direct operating expenses |
21,437 |
|
|
18,551 |
|
|
42,418 |
|
|
50,027 |
|
|||||
General and administrative expenses |
4,844 |
|
|
4,445 |
|
|
8,371 |
|
|
9,369 |
|
|||||
Depreciation and amortization |
5,734 |
|
|
7,156 |
|
|
11,804 |
|
|
15,145 |
|
|||||
Impairment of long-lived assets |
— |
|
|
— |
|
|
— |
|
|
15,579 |
|
|||||
Other, net |
— |
|
|
— |
|
|
— |
|
|
|
||||||
Total costs and expenses |
32,015 |
|
|
30,152 |
|
|
62,593 |
|
|
90,120 |
|
|||||
Operating loss |
(7,241 |
) |
|
(5,686 |
) |
|
(14,154 |
) |
|
(27,712 |
) |
|||||
Interest expense, net |
(641 |
) |
|
(1,116 |
) |
|
(1,319 |
) |
|
(2,276 |
) |
|||||
Other income (expense), net |
4,025 |
|
|
38 |
|
|
4,013 |
|
|
180 |
|
|||||
Reorganization items, net |
— |
|
|
— |
|
|
— |
|
|
— |
|
|||||
Loss before income taxes |
(3,857 |
) |
|
(6,764 |
) |
|
(11,460 |
) |
|
(29,808 |
) |
|||||
Income tax expense |
— |
|
|
(15 |
) |
|
— |
|
|
(15 |
) |
|||||
Net loss |
$ |
(3,857 |
) |
|
$ |
(6,779 |
) |
|
$ |
(11,460 |
) |
|
$ |
(29,823 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Loss per common share: |
|
|
|
|
|
|
|
|||||||||
Net loss per basic common share |
$ |
(0.24 |
) |
|
$ |
(0.43 |
) |
|
$ |
(0.72 |
) |
|
$ |
(1.89 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Net loss per diluted common share |
$ |
(0.24 |
) |
|
$ |
(0.43 |
) |
|
$ |
(0.72 |
) |
|
$ |
(1.89 |
) |
|
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|||||||||
Basic |
15,996 |
|
|
15,761 |
|
|
15,937 |
|
|
15,757 |
|
|||||
Diluted |
15,996 |
|
|
15,761 |
|
|
15,937 |
|
|
15,757 |
|
NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES
|
||||||||
|
June 30, |
|
December 31, |
|||||
|
2021 |
|
2020 |
|||||
Assets |
|
|
|
|||||
Cash and cash equivalents |
$ |
7,374 |
|
|
$ |
12,880 |
|
|
Restricted cash |
3,323 |
|
|
2,820 |
|
|||
Accounts receivable, net |
15,270 |
|
|
15,427 |
|
|||
Inventories |
2,881 |
|
|
2,852 |
|
|||
Prepaid expenses and other receivables |
2,421 |
|
|
3,119 |
|
|||
Other current assets |
— |
|
|
— |
|
|||
Assets held for sale |
778 |
|
|
778 |
|
|||
Total current assets |
32,047 |
|
|
37,876 |
|
|||
Property, plant and equipment, net |
140,705 |
|
|
151,164 |
|
|||
Operating lease assets |
1,526 |
|
|
1,691 |
|
|||
Equity investments |
— |
|
|
35 |
|
|||
Intangibles, net |
168 |
|
|
194 |
|
|||
Other assets |
86 |
|
|
106 |
|
|||
Deferred income taxes |
— |
|
|
— |
|
|||
Long-term assets held for sale |
— |
|
|
— |
|
|||
Total assets |
$ |
174,532 |
|
|
$ |
191,066 |
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|||||
Accounts payable |
$ |
4,851 |
|
|
$ |
5,130 |
|
|
Accrued and other current liabilities |
9,617 |
|
|
9,550 |
|
|||
Current portion of long-term debt |
2,269 |
|
|
2,433 |
|
|||
Current contingent consideration |
— |
|
|
— |
|
|||
Total current liabilities |
16,737 |
|
|
17,113 |
|
|||
Long-term debt |
26,740 |
|
|
31,673 |
|
|||
Noncurrent operating lease liabilities |
1,259 |
|
|
1,360 |
|
|||
Deferred income taxes |
120 |
|
|
120 |
|
|||
Long-term contingent consideration |
500 |
|
|
500 |
|
|||
Other long-term liabilities |
8,164 |
|
|
8,017 |
|
|||
Total liabilities |
53,520 |
|
|
58,783 |
|
|||
Commitments and contingencies |
|
|
|
|||||
Shareholders’ equity: |
|
|
|
|||||
Preferred stock |
— |
|
|
— |
|
|||
Common stock |
161 |
|
|
158 |
|
|||
Additional paid-in capital |
340,185 |
|
|
339,663 |
|
|||
Treasury stock |
(813 |
) |
|
(477 |
) |
|||
Accumulated deficit |
(218,521 |
) |
|
(207,061 |
) |
|||
Total shareholders’ equity |
121,012 |
|
|
132,283 |
|
|||
Total liabilities and shareholders’ equity |
$ |
174,532 |
|
|
$ |
191,066 |
|
NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES
|
||||||||
|
Six Months Ended |
|||||||
|
June 30, |
|||||||
|
2021 |
|
2020 |
|||||
Cash flows from operating activities: |
|
|
|
|||||
Net loss |
$ |
(11,460 |
) |
|
$ |
(29,823 |
) |
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|||||
PPP Loan Forgiveness |
(4,000 |
) |
|
— |
|
|||
Depreciation and amortization |
11,804 |
|
|
15,145 |
|
|||
Amortization of debt issuance costs, net |
122 |
|
|
81 |
|
|||
Stock-based compensation |
525 |
|
|
612 |
|
|||
Impairment of long-lived assets |
— |
|
|
15,579 |
|
|||
Gain on disposal of property, plant and equipment |
(300 |
) |
|
(342 |
) |
|||
Bad debt (recoveries) expense |
27 |
|
|
(160 |
) |
|||
Deferred income taxes |
— |
|
|
40 |
|
|||
Other, net |
398 |
|
|
375 |
|
|||
Changes in operating assets and liabilities: |
|
|
|
|||||
Accounts receivable |
130 |
|
|
9,772 |
|
|||
Prepaid expenses and other receivables |
698 |
|
|
382 |
|
|||
Accounts payable and accrued liabilities |
(277 |
) |
|
(2,271 |
) |
|||
Other assets and liabilities, net |
(60 |
) |
|
435 |
|
|||
Net cash provided by (used in) operating activities |
(2,393 |
) |
|
9,825 |
|
|||
Cash flows from investing activities: |
|
|
|
|||||
Proceeds from the sale of property, plant and equipment |
247 |
|
|
1,548 |
|
|||
Purchases of property, plant and equipment |
(1,302 |
) |
|
(2,328 |
) |
|||
Net cash used in investing activities |
(1,055 |
) |
|
(780 |
) |
|||
Cash flows from financing activities: |
|
|
|
|||||
Payments on Commercial real estate loan |
(280 |
) |
|
— |
|
|||
Payments on First and Second Lien Term Loans |
— |
|
|
(1,909 |
) |
|||
Proceeds from Revolving Facility |
— |
|
|
76,202 |
|
|||
Payments on Revolving Facility |
— |
|
|
(76,202 |
) |
|||
Proceeds from PPP Loan |
— |
|
|
4,000 |
|
|||
Payments on finance leases and other financing activities |
(1,275 |
) |
|
(1,053 |
) |
|||
Net cash used in financing activities |
(1,555 |
) |
|
1,038 |
|
|||
Change in cash, cash equivalents and restricted cash |
(5,003 |
) |
|
10,083 |
|
|||
Cash and cash equivalents, beginning of period |
12,880 |
|
|
4,788 |
|
|||
Restricted cash, beginning of period |
2,820 |
|
|
922 |
|
|||
Cash, cash equivalents and restricted cash, beginning of period |
15,700 |
|
|
5,710 |
|
|||
Cash and cash equivalents, end of period |
7,374 |
|
|
15,793 |
|
|||
Restricted cash, end of period |
3,323 |
|
|
— |
|
|||
Cash, cash equivalents and restricted cash, end of period |
$ |
10,697 |
|
|
$ |
15,793 |
|
NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES
NON-GAAP RECONCILIATIONS
(In thousands)
(Unaudited)
This press release contains non-GAAP financial measures as defined by the rules and regulations of the United States Securities and Exchange Commission. A non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statements of operations or balance sheets of the Company; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. Reconciliations of these non-GAAP financial measures to their comparable GAAP financial measures are included in the attached financial tables.
These non-GAAP financial measures are provided because management of the Company uses these financial measures in evaluating the Company’s ongoing financial results and trends. Management uses this non-GAAP information as an indicator of business results, and evaluates overall performance with respect to such indicators. Management believes that excluding items such as acquisition expenses, amortization of intangible assets, stock-based compensation, asset impairments, restructuring charges, expenses related to litigation and resolution of lawsuits, and other charges, which may or may not be non-recurring, among other items that are inconsistent in amount and frequency (as with acquisition expenses), or determined pursuant to complex formulas that incorporate factors, such as market volatility, that are beyond our control (as with stock-based compensation), for purposes of calculating these non-GAAP financial measures facilitates a more meaningful evaluation of the Company’s current operating performance and comparisons to the past and future operating performance. The Company believes that providing non-GAAP financial measures such as EBITDA, adjusted EBITDA, adjusted net income (loss), and adjusted net income (loss) per share, in addition to related GAAP financial measures, provides investors with greater transparency to the information used by the Company’s management. These non-GAAP financial measures are not substitutes for measures of performance or liquidity calculated in accordance with GAAP and may not necessarily be indicative of the Company’s liquidity or ability to fund cash needs. Not all companies calculate non-GAAP financial measures in the same manner, and our presentation may not be comparable to the presentations of other companies.
NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES
|
||||||||||||||||
Reconciliation of Net Loss to EBITDA and Total Adjusted EBITDA |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
|
June 30, |
|
June 30, |
|||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|||||||||
Net loss |
$ |
(3,857 |
) |
|
$ |
(6,779 |
) |
|
$ |
(11,460 |
) |
|
$ |
(29,823 |
) |
|
Depreciation and amortization |
5,734 |
|
|
7,156 |
|
|
11,804 |
|
|
15,145 |
|
|||||
Interest expense, net |
641 |
|
|
1,116 |
|
|
1,319 |
|
|
2,276 |
|
|||||
Income tax expense |
— |
|
|
15 |
|
|
— |
|
|
15 |
|
|||||
EBITDA |
2,518 |
|
|
1,508 |
|
|
1,663 |
|
|
(12,387 |
) |
|||||
Adjustments: |
|
|
|
|
|
|
|
|||||||||
Stock-based compensation |
392 |
|
|
322 |
|
|
525 |
|
|
612 |
|
|||||
Reorganization items, net |
2 |
|
|
— |
|
|
10 |
|
|
— |
|
|||||
Transaction-related costs, net |
(3,996 |
) |
|
915 |
|
|
(3,991 |
) |
|
889 |
|
|||||
Legal and environmental costs, net |
0 |
|
|
0 |
|
|
0 |
|
|
(118 |
) |
|||||
(Gain) loss on disposal of assets |
(211 |
) |
|
(242 |
) |
|
(265 |
) |
|
(342 |
) |
|||||
Impairment of long-lived assets |
— |
|
|
— |
|
|
— |
|
|
15,579 |
|
|||||
Executive and severance costs |
1,050 |
|
|
28 |
|
|
1,050 |
|
|
174 |
|
|||||
Total Adjusted EBITDA |
$ |
(245 |
) |
|
$ |
2,531 |
|
|
$ |
(1,008 |
) |
|
$ |
4,407 |
|
NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
Reconciliation of QTD Segment Performance to Adjusted EBITDA |
||||||||||||||||||||||||
Three months ended June 30, 2021 |
|
Rocky Mountain |
|
Northeast |
|
Southern |
|
Corporate |
|
Total |
||||||||||||||
Revenue |
|
$ |
12,815 |
|
|
|
$ |
7,872 |
|
|
|
$ |
4,087 |
|
|
|
$ |
— |
|
|
$ |
24,774 |
|
|
Direct operating expenses |
|
11,151 |
|
|
|
7,198 |
|
|
|
3,088 |
|
|
|
— |
|
|
21,437 |
|
|
|||||
General and administrative expenses |
|
741 |
|
|
|
326 |
|
|
|
185 |
|
|
|
3,592 |
|
|
4,844 |
|
|
|||||
Depreciation and amortization |
|
2,293 |
|
|
|
2,282 |
|
|
|
1,148 |
|
|
|
11 |
|
|
5,734 |
|
|
|||||
Operating loss |
|
(1,370 |
) |
|
|
(1,934 |
) |
|
|
(334 |
) |
|
|
(3,603 |
) |
|
(7,241 |
) |
|
|||||
Operating margin % |
|
(10.7 |
) |
% |
|
(24.6 |
) |
% |
|
(8.2 |
) |
% |
|
N/A |
|
(29.2 |
) |
% |
||||||
Loss before income taxes |
|
2,510 |
|
|
|
(2,034 |
) |
|
|
(385 |
) |
|
|
(3,948 |
) |
|
(3,857 |
) |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net loss |
|
2,510 |
|
|
|
(2,034 |
) |
|
|
(385 |
) |
|
|
(3,948 |
) |
|
(3,857 |
) |
|
|||||
Depreciation and amortization |
|
2,293 |
|
|
|
2,282 |
|
|
|
1,148 |
|
|
|
11 |
|
|
5,734 |
|
|
|||||
Interest expense, net |
|
147 |
|
|
|
100 |
|
|
|
51 |
|
|
|
343 |
|
|
641 |
|
|
|||||
Income tax expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|||||
EBITDA |
|
$ |
4,950 |
|
|
|
$ |
348 |
|
|
|
$ |
814 |
|
|
|
$ |
(3,594 |
) |
|
$ |
2,518 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Adjustments, net |
|
(4,026 |
) |
|
|
(26 |
) |
|
|
(159 |
) |
|
|
1,448 |
|
|
(2,763 |
) |
|
|||||
Adjusted EBITDA |
|
$ |
924 |
|
|
|
$ |
322 |
|
|
|
$ |
655 |
|
|
|
$ |
(2,146 |
) |
|
$ |
(245 |
) |
|
Adjusted EBITDA margin % |
|
7.2 |
|
% |
|
4.1 |
|
% |
|
16.0 |
|
% |
|
N/A |
|
(1.0 |
) |
% |
Three months ended June 30, 2020 |
|
Rocky Mountain |
|
Northeast |
|
Southern |
|
Corporate |
|
Total |
||||||||||||||
Revenue |
|
$ |
12,222 |
|
|
|
$ |
8,162 |
|
|
|
$ |
4,082 |
|
|
|
$ |
— |
|
|
$ |
24,466 |
|
|
Direct operating expenses |
|
10,458 |
|
|
|
5,593 |
|
|
|
2,500 |
|
|
|
— |
|
|
18,551 |
|
|
|||||
General and administrative expenses |
|
1,524 |
|
|
|
434 |
|
|
|
240 |
|
|
|
2,247 |
|
|
4,445 |
|
|
|||||
Depreciation and amortization |
|
2,874 |
|
|
|
2,532 |
|
|
|
1,746 |
|
|
|
4 |
|
|
7,156 |
|
|
|||||
Operating income (loss) |
|
(2,634 |
) |
|
|
(397 |
) |
|
|
(404 |
) |
|
|
(2,251 |
) |
|
(5,686 |
) |
|
|||||
Operating margin % |
|
(21.6 |
) |
% |
|
(4.9 |
) |
% |
|
(9.9 |
) |
% |
|
N/A |
|
(23.2 |
) |
% |
||||||
Income (loss) before income taxes |
|
(2,786 |
) |
|
|
(504 |
) |
|
|
(457 |
) |
|
|
(3,017 |
) |
|
(6,764 |
) |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income (loss) |
|
(2,786 |
) |
|
|
(504 |
) |
|
|
(457 |
) |
|
|
(3,032 |
) |
|
(6,779 |
) |
|
|||||
Depreciation and amortization |
|
2,874 |
|
|
|
2,532 |
|
|
|
1,746 |
|
|
|
4 |
|
|
7,156 |
|
|
|||||
Interest expense, net |
|
190 |
|
|
|
107 |
|
|
|
53 |
|
|
|
766 |
|
|
1,116 |
|
|
|||||
Income tax expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15 |
|
|
15 |
|
|
|||||
EBITDA |
|
$ |
278 |
|
|
|
$ |
2,135 |
|
|
|
$ |
1,342 |
|
|
|
$ |
(2,247 |
) |
|
$ |
1,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Adjustments, net |
|
935 |
|
|
|
(175 |
) |
|
|
(155 |
) |
|
|
418 |
|
|
1,023 |
|
|
|||||
Adjusted EBITDA |
|
$ |
1,213 |
|
|
|
$ |
1,960 |
|
|
|
$ |
1,187 |
|
|
|
$ |
(1,829 |
) |
|
$ |
2,531 |
|
|
Adjusted EBITDA margin % |
|
9.9 |
|
% |
|
24.0 |
|
% |
|
29.1 |
|
% |
|
N/A |
|
10.3 |
|
% |
NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||
Reconciliation of YTD Segment Performance to Adjusted EBITDA |
||||||||||||||||||||||||
Six months ended June 30, 2021 |
|
Rocky Mountain |
|
Northeast |
|
Southern |
|
Corporate |
|
Total |
||||||||||||||
Revenue |
|
$ |
25,604 |
|
|
|
$ |
15,178 |
|
|
|
$ |
7,657 |
|
|
|
$ |
— |
|
|
$ |
48,439 |
|
|
Direct operating expenses |
|
22,514 |
|
|
|
13,851 |
|
|
|
6,053 |
|
|
|
— |
|
|
42,418 |
|
|
|||||
General and administrative expenses |
|
1,662 |
|
|
|
685 |
|
|
|
343 |
|
|
|
5,681 |
|
|
8,371 |
|
|
|||||
Depreciation and amortization |
|
4,605 |
|
|
|
4,637 |
|
|
|
2,540 |
|
|
|
22 |
|
|
11,804 |
|
|
|||||
Operating loss |
|
(3,177 |
) |
|
|
(3,995 |
) |
|
|
(1,279 |
) |
|
|
(5,703 |
) |
|
(14,154 |
) |
|
|||||
Operating margin % |
|
(12.4 |
) |
% |
|
(26.3 |
) |
% |
|
(16.7 |
) |
% |
|
N/A |
|
(29.2 |
) |
% |
||||||
Loss before income taxes |
|
550 |
|
|
|
(4,198 |
) |
|
|
(1,381 |
) |
|
|
(6,431 |
) |
|
(11,460 |
) |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net loss |
|
550 |
|
|
|
(4,198 |
) |
|
|
(1,381 |
) |
|
|
(6,431 |
) |
|
(11,460 |
) |
|
|||||
Depreciation and amortization |
|
4,605 |
|
|
|
4,637 |
|
|
|
2,540 |
|
|
|
22 |
|
|
11,804 |
|
|
|||||
Interest expense, net |
|
296 |
|
|
|
203 |
|
|
|
102 |
|
|
|
718 |
|
|
1,319 |
|
|
|||||
Income tax expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|||||
EBITDA |
|
$ |
5,451 |
|
|
|
$ |
642 |
|
|
|
$ |
1,261 |
|
|
|
$ |
(5,691 |
) |
|
$ |
1,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Adjustments, net |
|
(4,056 |
) |
|
|
(50 |
) |
|
|
(159 |
) |
|
|
1,594 |
|
|
(2,671 |
) |
|
|||||
Adjusted EBITDA |
|
$ |
1,395 |
|
|
|
$ |
592 |
|
|
|
$ |
1,102 |
|
|
|
$ |
(4,097 |
) |
|
$ |
(1,008 |
) |
|
Adjusted EBITDA margin % |
|
5.4 |
|
% |
|
3.9 |
|
% |
|
14.4 |
|
% |
|
N/A |
|
(2.1 |
) |
% |
Six months ended June 30, 2020 |
|
Rocky Mountain |
|
Northeast |
|
Southern |
|
Corporate |
|
Total |
||||||||||||||
Revenue |
|
$ |
35,690 |
|
|
|
$ |
17,956 |
|
|
|
$ |
8,762 |
|
|
|
$ |
— |
|
|
$ |
62,408 |
|
|
Direct operating expenses |
|
30,009 |
|
|
|
13,964 |
|
|
|
6,054 |
|
|
|
— |
|
|
50,027 |
|
|
|||||
General and administrative expenses |
|
3,013 |
|
|
|
1,068 |
|
|
|
510 |
|
|
|
4,778 |
|
|
9,369 |
|
|
|||||
Depreciation and amortization |
|
6,339 |
|
|
|
5,083 |
|
|
|
3,715 |
|
|
|
8 |
|
|
15,145 |
|
|
|||||
Operating loss |
|
(15,854 |
) |
|
|
(2,159 |
) |
|
|
(4,913 |
) |
|
|
(4,786 |
) |
|
(27,712 |
) |
|
|||||
Operating margin % |
|
(44.4 |
) |
% |
|
(12.0 |
) |
% |
|
(56.1 |
) |
% |
|
N/A |
|
(44.4 |
) |
% |
||||||
Loss before income taxes |
|
(16,041 |
) |
|
|
(2,379 |
) |
|
|
(5,020 |
) |
|
|
(6,368 |
) |
|
(29,808 |
) |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net loss |
|
(16,041 |
) |
|
|
(2,379 |
) |
|
|
(5,020 |
) |
|
|
(6,383 |
) |
|
(29,823 |
) |
|
|||||
Depreciation and amortization |
|
6,339 |
|
|
|
5,083 |
|
|
|
3,715 |
|
|
|
8 |
|
|
15,145 |
|
|
|||||
Interest expense, net |
|
367 |
|
|
|
220 |
|
|
|
107 |
|
|
|
1,582 |
|
|
2,276 |
|
|
|||||
Income tax expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15 |
|
|
15 |
|
|
|||||
EBITDA |
|
$ |
(9,335 |
) |
|
|
$ |
2,924 |
|
|
|
$ |
(1,198 |
) |
|
|
$ |
(4,778 |
) |
|
$ |
(12,387 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Adjustments, net |
|
13,120 |
|
|
|
(236 |
) |
|
|
3,228 |
|
|
|
682 |
|
|
16,794 |
|
|
|||||
Adjusted EBITDA |
|
$ |
3,785 |
|
|
|
$ |
2,688 |
|
|
|
$ |
2,030 |
|
|
|
$ |
(4,096 |
) |
|
$ |
4,407 |
|
|
Adjusted EBITDA margin % |
|
10.6 |
|
% |
|
15.0 |
|
% |
|
23.2 |
|
% |
|
N/A |
|
7.1 |
|
% |
NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES NON-GAAP RECONCILIATIONS (continued) (In thousands) (Unaudited) |
||||||||||||||
Reconciliation of Special Items to Net Loss and to EBITDA and Adjusted EBITDA |
||||||||||||||
|
Three months ended June 30, 2021 |
|||||||||||||
|
As Reported |
|
Special Items |
|
As Adjusted |
|||||||||
Revenue |
$ |
24,774 |
|
|
$ |
— |
|
|
|
|
$ |
24,774 |
|
|
Direct operating expenses |
21,437 |
|
|
211 |
|
|
[A] |
|
21,648 |
|
||||
General and administrative expenses |
4,844 |
|
|
(1,446 |
) |
|
[B] |
|
3,398 |
|
||||
Total costs and expenses |
32,015 |
|
|
(1,235 |
) |
|
[C] |
|
30,780 |
|
||||
Operating loss |
(7,241 |
) |
|
1,235 |
|
|
[C] |
|
(6,006 |
) |
||||
Net loss |
(3,857 |
) |
|
(2,763 |
) |
|
[D] |
|
(6,620 |
) |
||||
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(3,857 |
) |
|
|
|
|
$ |
(6,620 |
) |
||||
Depreciation and amortization |
5,734 |
|
|
|
|
|
5,734 |
|
||||||
Interest expense, net |
641 |
|
|
|
|
|
641 |
|
||||||
Income tax expense |
— |
|
|
|
|
|
— |
|
||||||
EBITDA and Adjusted EBITDA |
$ |
2,518 |
|
|
|
|
|
$ |
(245 |
) |
Description of 2021 Special Items: |
||
[A] |
Special items primarily relate to the gain on the sale of underutilized assets. |
|
[B] |
Primarily attributable to transition costs, which include but are not limited to severance and stock based compensation for executives. |
|
[C] |
Primarily includes the aforementioned adjustments. |
|
[D] |
Primarily includes the aforementioned adjustments, along with a |
NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES
|
||||||||||||||
Reconciliation of Special Items to Net Loss and to EBITDA and Adjusted EBITDA |
||||||||||||||
|
Three months ended June 30, 2020 |
|||||||||||||
|
As Reported |
|
Special Items |
|
As Adjusted |
|||||||||
Revenue |
$ |
24,466 |
|
|
$ |
— |
|
|
|
|
$ |
24,466 |
|
|
Direct operating expenses |
18,551 |
|
|
236 |
|
|
[D] |
|
18,787 |
|
||||
General and administrative expenses |
4,445 |
|
|
(1,259 |
) |
|
[E] |
|
3,186 |
|
||||
Total costs and expenses |
30,152 |
|
|
(1,023 |
) |
|
[F] |
|
29,129 |
|
||||
Operating loss |
(5,686 |
) |
|
1,023 |
|
|
[F] |
|
(4,663 |
) |
||||
Net loss |
(6,779 |
) |
|
1,025 |
|
|
[G] |
|
(5,754 |
) |
||||
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(6,779 |
) |
|
|
|
|
$ |
(5,754 |
) |
||||
Depreciation and amortization |
7,156 |
|
|
|
|
|
7,156 |
|
||||||
Interest expense, net |
1,116 |
|
|
|
|
|
1,116 |
|
||||||
Income tax expense |
15 |
|
|
|
|
|
13 |
|
||||||
EBITDA and Adjusted EBITDA |
$ |
1,508 |
|
|
|
|
|
$ |
2,531 |
|
Description of 2020 Special Items: |
||
[D] |
Special items primarily relate to the gain on the sale of underutilized assets. |
|
[E] |
Primarily attributable to transaction costs related to a discontinued project and stock-based compensation expense. |
|
[F] |
Primarily includes the aforementioned adjustments. |
|
[G] |
Primarily includes the aforementioned adjustments. Additionally, our effective tax rate for the three months ended June 30, 2020 was ( |
NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES
|
||||||||||||||
Reconciliation of Special Items to Net Loss and to EBITDA and Adjusted EBITDA |
||||||||||||||
|
Six months ended June 30, 2021 |
|||||||||||||
|
As Reported |
|
Special Items |
|
As Adjusted |
|||||||||
Revenue |
$ |
48,439 |
|
|
$ |
— |
|
|
|
|
$ |
48,439 |
|
|
Direct operating expenses |
42,418 |
|
|
300 |
|
|
[A] |
|
42,718 |
|
||||
General and administrative expenses |
8,371 |
|
|
(1,584 |
) |
|
[B] |
|
6,787 |
|
||||
Total costs and expenses |
62,593 |
|
|
(1,284 |
) |
|
[C] |
|
61,309 |
|
||||
Operating loss |
(14,154 |
) |
|
1,284 |
|
|
[C] |
|
(12,870 |
) |
||||
Net loss |
(11,460 |
) |
|
(2,671 |
) |
|
[D] |
|
(14,131 |
) |
||||
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(11,460 |
) |
|
|
|
|
$ |
(14,131 |
) |
||||
Depreciation and amortization |
11,804 |
|
|
|
|
|
11,804 |
|
||||||
Interest expense, net |
1,319 |
|
|
|
|
|
1,319 |
|
||||||
Income tax expense |
— |
|
|
|
|
|
— |
|
||||||
EBITDA and Adjusted EBITDA |
$ |
1,663 |
|
|
|
|
|
$ |
(1,008 |
) |
Description of 2021 Special Items: |
||
[A] |
Special items primarily relate to the gain on the sale of underutilized assets and severance costs. |
|
[B] |
Primarily attributable to transition costs, which include but are not limited to severance and stock based compensation for executives. |
|
[C] |
Primarily includes the aforementioned adjustments. |
|
[D] |
Primarily includes the aforementioned adjustments, along with a |
NUVERRA ENVIRONMENTAL SOLUTIONS, INC. AND SUBSIDIARIES
|
||||||||||||||
Reconciliation of Special Items to Net Loss and to EBITDA and Adjusted EBITDA |
||||||||||||||
|
Six months ended June 30, 2020 |
|||||||||||||
|
As Reported |
|
Special Items |
|
As Adjusted |
|||||||||
Revenue |
$ |
62,408 |
|
|
$ |
— |
|
|
|
|
$ |
62,408 |
|
|
Direct operating expenses |
50,027 |
|
|
209 |
|
|
[E] |
|
50,236 |
|
||||
General and administrative expenses |
9,369 |
|
|
(1,542 |
) |
|
[F] |
|
7,827 |
|
||||
Total costs and expenses |
90,120 |
|
|
(16,912 |
) |
|
[G] |
|
73,208 |
|
||||
Operating loss |
(27,712 |
) |
|
16,912 |
|
|
[G] |
|
(10,800 |
) |
||||
Net loss |
(29,823 |
) |
|
16,802 |
|
|
[H] |
|
(13,021 |
) |
||||
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(29,823 |
) |
|
|
|
|
$ |
(13,021 |
) |
||||
Depreciation and amortization |
15,145 |
|
|
|
|
|
15,145 |
|
||||||
Interest expense, net |
2,276 |
|
|
|
|
|
2,276 |
|
||||||
Income tax expense |
15 |
|
|
|
|
|
7 |
|
||||||
EBITDA and Adjusted EBITDA |
$ |
(12,387 |
) |
|
|
|
|
$ |
4,407 |
|
Description of 2020 Special Items: |
||
[E] |
Special items primarily relate to the gain on the sale of underutilized assets and severance costs. |
|
[F] |
Primarily attributable to transaction costs related to a discontinued project, stock-based compensation expense, reversal of certain prior year transaction costs related to the exploration of strategic opportunities, and severance costs. |
|
[G] |
Primarily includes the aforementioned adjustments along with long-lived asset impairment charges of |
|
[H] |
Primarily includes the aforementioned adjustments. Additionally, our effective tax rate for the six months ended June 30, 2020 was ( |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210819005257/en/
FAQ
What were the financial results for Nuverra Environmental Solutions in Q2 2021?
How did the net loss for Nuverra in Q2 2021 compare to Q2 2020?
What is the total liquidity available for Nuverra as of June 30, 2021?
How much did revenue decline for Nuverra in the first half of 2021?