National Energy Services Reunited Corp. Reports Third Quarter Financial Results
National Energy Services Reunited Corp. (NESR) reported strong Q3 2024 financial results with revenue reaching $336.2 million, up 12.0% year-over-year and 3.5% sequentially. Net income grew 40.0% year-over-year to $20.6 million, while Adjusted EBITDA increased 12.9% to $80.0 million. Diluted EPS rose 37.5% to $0.22. Operating cash flow for the nine months improved 30.4% to $183.1 million, with free cash flow up 38.1% to $103.0 million. The company achieved a significant milestone with Net Debt to trailing-twelve-months Adjusted EBITDA falling below 1.0, ending at 0.96.
National Energy Services Reunited Corp. (NESR) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un fatturato che ha raggiunto i 336,2 milioni di dollari, in aumento del 12,0% rispetto all'anno precedente e del 3,5% rispetto al trimestre precedente. Il reddito netto è cresciuto del 40,0% rispetto all'anno precedente, arrivando a 20,6 milioni di dollari, mentre l'EBITDA rettificato è aumentato del 12,9% a 80,0 milioni di dollari. L'EPS diluito è salito del 37,5% a 0,22 dollari. Il flusso di cassa operativo per i nove mesi è migliorato del 30,4%, raggiungendo 183,1 milioni di dollari, con un flusso di cassa libero in aumento del 38,1% a 103,0 milioni di dollari. L'azienda ha raggiunto un traguardo significativo, con il rapporto Debito Netto su EBITDA rettificato degli ultimi dodici mesi sceso al di sotto di 1,0, chiudendo a 0,96.
National Energy Services Reunited Corp. (NESR) reportó sólidos resultados financieros para el tercer trimestre de 2024, con ingresos alcanzando los 336.2 millones de dólares, un aumento del 12.0% interanual y del 3.5% secuencialmente. El ingreso neto creció un 40.0% interanual, alcanzando los 20.6 millones de dólares, mientras que el EBITDA ajustado aumentó un 12.9% a 80.0 millones de dólares. El EPS diluido subió un 37.5% a 0.22 dólares. El flujo de caja operativo durante los nueve meses mejoró un 30.4%, alcanzando los 183.1 millones de dólares, con flujo de caja libre aumentando un 38.1% a 103.0 millones de dólares. La empresa alcanzó un hito significativo, con la relación Deuda Neta a EBITDA ajustado de los últimos doce meses cayendo por debajo de 1.0, finalizando en 0.96.
National Energy Services Reunited Corp. (NESR)는 2024년 3분기 재무 결과를 발표하며 수익이 3억 3천6백20만 달러에 도달하였고, 이는 전년 대비 12.0% 증가하고 직전 분기 대비 3.5% 증가한 수치입니다. 순이익은 전년 대비 40.0% 증가하여 2천6백만 달러에 이르렀고, 조정된 EBITDA는 12.9% 증가하여 8천만 달러에 도달하였습니다. 희석 주당 순이익은 37.5% 상승하여 0.22 달러에 이르렀습니다. 9개월 동안의 운영 현금 흐름은 30.4% 개선되어 1억 8천3백만 달러에 도달하였으며, 자유 현금 흐름은 38.1% 증가하여 1억 3천만 달러에 이르렀습니다. 회사는 지난 12개월간의 조정 EBITDA에 대한 순부채 비율이 1.0 이하로 떨어지는 중요한 이정표를 달성하여 0.96으로 마감하였습니다.
National Energy Services Reunited Corp. (NESR) a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec des revenus atteignant 336,2 millions de dollars, en hausse de 12,0% par rapport à l'année précédente et de 3,5% par rapport au trimestre précédent. Le revenu net a augmenté de 40,0% par rapport à l'année précédente pour atteindre 20,6 millions de dollars, tandis que l'EBITDA ajusté a augmenté de 12,9% pour s'élever à 80,0 millions de dollars. L'EPS dilué a augmenté de 37,5% pour atteindre 0,22 dollar. Le flux de trésorerie d'exploitation pour les neuf mois s'est amélioré de 30,4% pour atteindre 183,1 millions de dollars, avec un flux de trésorerie libre en hausse de 38,1% pour s'élever à 103,0 millions de dollars. L'entreprise a atteint une étape importante, le ratio de la dette nette sur l'EBITDA ajusté des douze derniers mois étant tombé en dessous de 1,0, se terminant à 0,96.
National Energy Services Reunited Corp. (NESR) berichtete über starke Finanzresultate im Q3 2024 mit Einnahmen von 336,2 Millionen Dollar, was einem Anstieg von 12,0% im Vergleich zum Vorjahr und 3,5% im Vergleich zum Vorquartal entspricht. Der Nettogewinn stieg im Jahresvergleich um 40,0% auf 20,6 Millionen Dollar, während das bereinigte EBITDA um 12,9% auf 80,0 Millionen Dollar anwuchs. Der verwässerte Gewinn pro Aktie (EPS) erhöhte sich um 37,5% auf 0,22 Dollar. Der operative Cashflow für die neun Monate verbesserte sich um 30,4% auf 183,1 Millionen Dollar, während der freie Cashflow um 38,1% auf 103,0 Millionen Dollar stieg. Das Unternehmen erreichte einen bedeutenden Meilenstein, da das Verhältnis von Nettoverschuldung zu bereinigtem EBITDA der letzten zwölf Monate unter 1,0 fiel und bei 0,96 endete.
- Revenue growth of 12.0% YoY to $336.2 million
- Net income increase of 40.0% YoY to $20.6 million
- Adjusted EBITDA growth of 12.9% YoY to $80.0 million
- Free cash flow improvement of 38.1% YoY to $103.0 million
- Net Debt reduction with debt-to-EBITDA ratio improving to 0.96
- Return on capital employed of 11% on trailing-twelve-months basis
- Short-term debt increased to $125.1 million from $120.6 million in December 2023
Insights
Strong financial performance across key metrics shows NESR's robust market position in MENA. Revenue growth of
NESR's strategic positioning in the MENA region continues to yield benefits despite regional geopolitical challenges. The successful implementation of Roya technology in Kuwait marks a significant advancement in their directional drilling capabilities. The investment in Salttech BV aligns with regional sustainability initiatives and circular water management needs. Strong performance in Saudi Arabia and Kuwait, particularly in the Jafurah unconventional development, indicates growing market share in key growth markets. The company's focus on technology expansion and commercialization positions it well for future market opportunities.
Revenue for the quarter ended September 30, 2024, is
$336.2 million , growing12.0% year-over-year and3.5% on a sequential quarter basisNet income for the quarter ended September 30, 2024, is
$20.6 million , growing40.0% year-over-year and9.2% on a sequential quarter basisAdjusted EBITDA (a non-GAAP measure)* for the quarter ended September 30, 2024 is
$80.0 million , growing12.9% year-over-year and1.8% on a sequential quarter basisDiluted Earnings per Share (EPS) for the quarter ended September 30, 2024, is
$0.22 , growing37.5% year-over-year and10.0% on a sequential quarter basisOperating cash flow for the nine months ended September 30, 2024, is
$183.1 million , improving30.4% year-over-yearFree cash flow (a non-GAAP measure)* for the nine months ended September 30, 2024, is
$103.0 million , improving38.1% year-over-year
HOUSTON, TX / ACCESSWIRE / November 19, 2024 / National Energy Services Reunited Corp. ("NESR" or the "Company") (NASDAQ:NESR)(NASDAQ:NESRW), a national, industry-leading provider of integrated energy services in the Middle East and North Africa ("MENA") region, today reported its financial results as of and for the three- and nine-month periods ended September 30, 2024. The Company posted the following results for the periods presented:
| Three Months Ended |
| Variance |
| ||||||||||||
(in thousands except per share amounts and percentages) |
| September 30, 2024 |
| June 30, |
| September 30, 2023 |
| Sequential |
| Year-over-year |
| |||||
|
|
|
|
|
|
|
|
|
|
| ||||||
Revenue |
| $ | 336,205 |
| $ | 324,969 |
| $ | 300,084 |
|
| 3.5 | % |
| 12.0 | % |
Net income |
|
| 20,618 |
|
| 18,873 |
|
| 14,731 |
|
| 9.2 | % |
| 40.0 | % |
Adjusted net income (non-GAAP)* |
|
| 28,912 |
|
| 27,356 |
|
| 19,797 |
|
| 5.7 | % |
| 46.0 | % |
Adjusted EBITDA (non-GAAP)* |
|
| 80,035 |
|
| 78,655 |
|
| 70,885 |
|
| 1.8 | % |
| 12.9 | % |
Diluted EPS |
|
| 0.22 |
|
| 0.20 |
|
| 0.16 |
|
| 10.0 | % |
| 37.5 | % |
Adjusted Diluted EPS (non-GAAP)* |
|
| 0.31 |
|
| 0.29 |
|
| 0.21 |
|
| 6.9 | % |
| 47.6 | % |
*The Company presents its financial results in accordance with generally accepted accounting principles in the United States of America ("GAAP"). However, management believes that using additional non-GAAP measures will enhance the evaluation of the profitability of the Company and its ongoing operations. Please see Tables 1, 2, 3, and 4 below for reconciliations of GAAP to non-GAAP financial measures. The Condensed Consolidated Balance Sheets, Condensed Consolidated Interim Statements of Operations, and Condensed Consolidated Interim Statements of Cash Flows are derived from the unaudited condensed consolidated interim financial statements present in our Period Report on Form 6-K as of and for the three- and nine-month periods ended September 30, 2024.
Stefan Angeli, Chief Financial Officer, commented, "Despite a volatile macro environment and geopolitical headwinds in the region, NESR again achieved excellent results during the third quarter of 2024. We delivered record revenue of
Despite macro volatility, the MENA region remains favorable and NESR continues to be focused on its stated goals of delivering profitable revenue growth, execution efficiency, technology expansion and commercialization, and debt reduction and working capital efficiency, to drive future financial performance. On behalf of management, I would like to thank our entire workforce for their outstanding efforts in delivering these results, together with our directors, shareholders, and banking consortium for their continued support. The future continues to look good."
Sherif Foda, Chairman and Chief Executive Officer, commented, "Another solid quarter result underscores our ability to continue to outpace the market. The quarter was also a significant milestone on several fronts related to our marquee technology development initiatives, as highlighted at our recent board meeting in Saudi Arabia with visits to the Kingdom's state-of-the art Jafurah unconventional development. Our successful Roya run in Kuwait, the first such single-run execution in the country for NESR, is a strong indication of our commercial viability in this highly sophisticated directional drilling segment. Additionally, our recent investment in Salttech BV both highlights our confidence in the NEDA circular water & circular mineral thesis and is also backed by several successful pilot projects in the region with ambition to scale the solution."
Net Income and Adjusted Net Income Results
The Company had net income for the quarter ended September 30, 2024, totaling
The Company reported
Adjusted EBITDA Results
The Company generated Adjusted EBITDA of
(in thousands) |
| Quarter ended |
|
| Quarter ended |
|
| Quarter ended |
| |||
Revenue |
| $ | 336,205 |
|
| $ | 324,969 |
|
| $ | 300,084 |
|
Adjusted EBITDA |
| $ | 80,035 |
|
| $ | 78,655 |
|
| $ | 70,885 |
|
Balance Sheet
Cash and cash equivalents are
Free cash flow, a non-GAAP measure, for the nine months ended September 30, 2024, was
Total debt as of September 30, 2024, is
Conference Call
A conference call is scheduled for 8:00 AM ET on November 19, 2024, to discuss the financial results. Investors, analysts and members of the media interested in listening to the conference call are encouraged to participate by dialling in to the U.S. toll-free line at 1-877-407-0890 or the international line at 1-201-389-0918, approximately 10 minutes prior to the start of the call.
A live, listen-only earnings webcast will also be broadcast simultaneously under the "Investors" section of the Company's website at www.nesr.com. Following the end of the conference call, a replay will be available after the event under the "Investors" section of the Company's website.
About National Energy Services Reunited Corp.
Founded in 2017, NESR is one of the largest national oilfield services providers in the MENA and Asia Pacific regions. With over 6,000 employees, representing more than 60 nationalities in over 15 countries, the Company helps its customers unlock the full potential of their reservoirs by providing Production Services such as Hydraulic Fracturing, Cementing, Coiled Tubing, Filtration, Completions, Stimulation, Pumping and Nitrogen Services. The Company also helps its customers to access their reservoirs in a smarter and faster manner by providing Drilling and Evaluation Services such as Drilling Downhole Tools, Directional Drilling, Fishing Tools, Testing Services, Wireline, Slickline, Drilling Fluids and Rig Services.
Forward-Looking Statements
This communication contains forward-looking statements (as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Any and all statements contained in this communication that are not statements of historical fact, may be deemed forward-looking statements. Terms such as "may," "might," "would," "should," "could," "project," "estimate," "predict," "potential," "strategy," "anticipate," "attempt," "develop," "plan," "help," "believe," "continue," "intend," "expect," "future," and terms of similar import (including the negative of any of these terms) may identify forward-looking statements. However, not all forward-looking statements may contain one or more of these identifying terms. Forward-looking statements in this communication may include, without limitation, the plans and objectives of management for future operations, projections of income or loss, earnings or loss per share, capital expenditures, dividends, capital structure or other financial items, the Company's future financial performance, expansion plans and opportunities, completion and integration of acquisitions, and the assumptions underlying or relating to any such statement.
The forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and may not be realized because they are based upon the Company's current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other influences, many of which the Company has no control over including the impact of the delayed SEC report filings on our business, the extent of any material weakness or significant deficiencies in our internal control over financial reporting and any action taken by the SEC including potential fines or penalties arising out of the SEC inquiry. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties. Factors that may influence or contribute to the accuracy of the forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation: estimates of the Company's future revenue, expenses, capital requirements and the Company's need for financing; the risk of legal complaints and proceedings and government investigations; the Company's financial performance; success in retaining or recruiting, or changes required in, the Company's officers, key employees or directors; current and future government regulations; developments relating to the Company's competitors; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic and market conditions, particularly during extended periods of low oil and gas prices, political disturbances, war, terrorist acts, public health crises and threats, ongoing actions taken by businesses and governments and resulting significant disruption in international economies, international financial and oil markets; international currency fluctuations, business and/or competitive factors; and other risks and uncertainties set forth in the Company's most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission (the "SEC").
You are cautioned not to place undue reliance on forward-looking statements because of the risks and uncertainties related to them and to the risk factors. The Company disclaims any obligation to update the forward-looking statements contained in this communication to reflect any new information or future events or circumstances or otherwise, except as required by law. You should read this communication in conjunction with other documents which the Company may file or furnish from time to time with the SEC.
The preliminary financial results for the Company as of and for the three- and nine-month periods ended September 30, 2024, included in this press release represent the most current information available to management. The Company's actual results when disclosed in its subsequent Periodic Reports on Form 6-K may differ from these preliminary results as a result of the completion of the Company's financial statement closing procedures, final adjustments, completion of the independent registered public accounting firm's review procedures, and other developments that may arise between now and the disclosure of the final results.
NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In US$ thousands, except share data)
| September 30, 2024 |
|
| December 31, |
| |||
|
|
|
|
|
| |||
Assets |
|
|
|
|
|
| ||
Current assets |
|
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 118,169 |
|
|
| 67,821 |
|
Accounts receivable, net |
|
| 132,549 |
|
|
| 171,269 |
|
Unbilled revenue |
|
| 141,857 |
|
|
| 95,997 |
|
Service inventories |
|
| 100,018 |
|
|
| 98,434 |
|
Prepaid assets |
|
| 15,988 |
|
|
| 9,238 |
|
Retention withholdings |
|
| 23,204 |
|
|
| 48,419 |
|
Other receivables |
|
| 31,765 |
|
|
| 39,778 |
|
Other current assets |
|
| 13,604 |
|
|
| 10,759 |
|
Total current assets |
|
| 577,154 |
|
|
| 541,715 |
|
Non-current assets |
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
| 425,133 |
|
|
| 442,666 |
|
Intangible assets, net |
|
| 70,349 |
|
|
| 84,304 |
|
Goodwill |
|
| 645,095 |
|
|
| 645,095 |
|
Operating lease right-of-use assets |
|
| 27,672 |
|
|
| 31,628 |
|
Other assets |
|
| 57,445 |
|
|
| 52,332 |
|
Total assets |
| $ | 1,802,848 |
|
| $ | 1,797,740 |
|
|
|
|
|
|
|
|
| |
Liabilities and equity |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
| 350,582 |
|
|
| 351,240 |
|
Current installments of long-term debt |
|
| 70,546 |
|
|
| 71,744 |
|
Short-term borrowings |
|
| 54,587 |
|
|
| 48,889 |
|
Income taxes payable |
|
| 2,331 |
|
|
| 8,421 |
|
Other taxes payable |
|
| 5,434 |
|
|
| 14,674 |
|
Operating lease liabilities |
|
| 5,971 |
|
|
| 7,406 |
|
Other current liabilities |
|
| 33,770 |
|
|
| 31,073 |
|
Total current liabilities |
|
| 523,221 |
|
|
| 533,447 |
|
|
|
|
|
|
|
|
| |
Long-term debt |
|
| 284,183 |
|
|
| 331,565 |
|
Deferred tax liabilities |
|
| - |
|
|
| - |
|
Employee benefit liabilities |
|
| 32,458 |
|
|
| 28,935 |
|
Non-current operating lease liabilities |
|
| 22,547 |
|
|
| 25,145 |
|
Other liabilities |
|
| 66,891 |
|
|
| 57,154 |
|
Total liabilities |
|
| 929,300 |
|
|
| 976,246 |
|
|
|
|
|
|
|
|
| |
Equity |
|
|
|
|
|
|
|
|
Preferred shares, no par value; unlimited shares authorized; none issued and outstanding at September 30, 2024 and December 31, 2023, respectively |
|
| - |
|
|
| - |
|
Common stock and additional paid in capital, no par value; unlimited shares authorized; 95,408,453 and 94,996,397 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively |
|
| 886,446 |
|
|
| 883,865 |
|
Retained (deficit) |
|
| (12,967 | ) |
|
| (62,440 | ) |
Accumulated other comprehensive income |
|
| 69 |
|
|
| 69 |
|
Total equity |
|
| 873,548 |
|
|
| 821,494 |
|
Total liabilities and equity |
| $ | 1,802,848 |
|
| $ | 1,797,740 |
|
NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS
(In US$ thousands, except share data and per share amounts)
| For the quarter-to-date period ended |
|
| For the year-to-date period ended |
| |||||||||||
Description |
| September 30, 2024 |
|
| September 30, 2023 |
|
| September 30, 2024 |
|
| September 30, 2023 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Revenues |
| $ | 336,205 |
|
| $ | 300,084 |
|
| $ | 958,022 |
|
| $ | 838,395 |
|
Cost of services |
|
| (282,794 | ) |
|
| (254,961 | ) |
|
| (808,530 | ) |
|
| (734,160 | ) |
Gross profit |
|
| 53,411 |
|
|
| 45,123 |
|
|
| 149,492 |
|
|
| 104,235 |
|
Selling, general and administrative expenses (excluding Amortization) |
|
| (13,270 | ) |
|
| (12,292 | ) |
|
| (41,290 | ) |
|
| (37,015 | ) |
Amortization |
|
| (4,693 | ) |
|
| (4,694 | ) |
|
| (14,080 | ) |
|
| (14,082 | ) |
Operating income |
|
| 35,448 |
|
|
| 28,137 |
|
|
| 94,122 |
|
|
| 53,138 |
|
Interest expense, net |
|
| (9,933 | ) |
|
| (12,081 | ) |
|
| (29,976 | ) |
|
| (34,067 | ) |
Other income, net |
|
| 394 |
|
|
| 1,423 |
|
|
| 1,199 |
|
|
| 2,287 |
|
Income before income tax |
|
| 25,909 |
|
|
| 17,479 |
|
|
| 65,345 |
|
|
| 21,358 |
|
Income tax expense |
|
| (5,291 | ) |
|
| (2,748 | ) |
|
| (15,872 | ) |
|
| (11,039 | ) |
Net income |
| $ | 20,618 |
|
| $ | 14,731 |
|
| $ | 49,473 |
|
| $ | 10,319 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 95,428,253 |
|
|
| 94,951,275 |
|
|
| 95,310,346 |
|
|
| 94,664,725 |
|
Diluted |
|
| 95,653,958 |
|
|
| 94,951,275 |
|
|
| 95,524,758 |
|
|
| 94,664,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | 0.22 |
|
| $ | 0.16 |
|
| $ | 0.52 |
|
| $ | 0.11 |
|
Diluted |
| $ | 0.22 |
|
| $ | 0.16 |
|
| $ | 0.52 |
|
| $ | 0.11 |
|
NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
(In US$ thousands)
| For the nine-month period ended |
| ||||||
| September 30, 2024 |
|
| September 30, 2023 |
| |||
|
|
|
|
|
| |||
Cash flows from operating activities: |
|
|
|
|
|
| ||
Net income |
| $ | 49,473 |
|
| $ | 10,319 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
| 103,176 |
|
|
| 106,199 |
|
Share-based compensation expense |
|
| 3,568 |
|
|
| 5,221 |
|
Loss / (Gain) on disposal of assets |
|
| 2,100 |
|
|
| (963 | ) |
Non-cash interest (income) expense |
|
| (1,646 | ) |
|
| 4,144 |
|
Deferred tax expense |
|
| (2,142 | ) |
|
| (3,062 | ) |
Allowance for (reversal of) doubtful receivables |
|
| 5,306 |
|
|
| 812 |
|
Charges on obsolete service inventories |
|
| 2,294 |
|
|
| 103 |
|
Impairments and other charges |
|
| 1,583 |
|
|
| - |
|
Other operating activities, net |
|
| 317 |
|
|
| 757 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
(Increase) decrease in accounts receivable |
|
| 33,466 |
|
|
| (7,140 | ) |
(Increase) decrease in unbilled revenue |
|
| (45,887 | ) |
|
| (2,720 | ) |
(Increase) decrease in retention withholdings |
|
| 25,215 |
|
|
| (4,233 | ) |
(Increase) decrease in inventories |
|
| (3,834 | ) |
|
| 3,636 |
|
(Increase) decrease in prepaid expenses |
|
| (6,772 | ) |
|
| 21 |
|
(Increase) decrease in other current assets |
|
| 6,365 |
|
|
| 896 |
|
Change in other long-term assets and liabilities |
|
| 4,653 |
|
|
| 2,999 |
|
Increase (decrease) in accounts payable and accrued expenses |
|
| 15,797 |
|
|
| 9,982 |
|
Increase (decrease) in other current liabilities |
|
| (9,963 | ) |
|
| 13,468 |
|
Net cash provided by operating activities |
|
| 183,069 |
|
|
| 140,439 |
|
|
|
|
|
|
|
|
| |
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
| (80,053 | ) |
|
| (65,824 | ) |
IPM investments |
|
| - |
|
|
| (15,917 | ) |
Proceeds from disposal of assets |
|
| 929 |
|
|
| 1,246 |
|
Other investing activities |
|
| (5,034 | ) |
|
| (1,000 | ) |
Net cash used in investing activities |
|
| (84,158 | ) |
|
| (81,495 | ) |
|
|
|
|
|
|
|
| |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Proceeds from long-term debt |
|
| 4,063 |
|
|
| 11,293 |
|
Repayments of long-term debt |
|
| (53,810 | ) |
|
| (40,014 | ) |
Proceeds from short-term borrowings |
|
| 58,738 |
|
|
| 73,312 |
|
Repayments of short-term borrowings |
|
| (53,140 | ) |
|
| (109,228 | ) |
Payments on capital leases |
|
| (1,432 | ) |
|
| (1,802 | ) |
Payments on seller-provided financing for capital expenditures |
|
| (2,819 | ) |
|
| (8,858 | ) |
Other financing activities, net |
|
| (163 | ) |
|
| (197 | ) |
Net cash used in financing activities |
|
| (48,563 | ) |
|
| (75,494 | ) |
|
|
|
|
|
|
|
| |
Effect of exchange rate changes on cash |
|
| - |
|
|
| - |
|
Net increase (decrease) in cash |
|
| 50,348 |
|
|
| (16,550 | ) |
Cash and cash equivalents, beginning of period |
|
| 67,821 |
|
|
| 78,853 |
|
Cash and cash equivalents, end of period |
| $ | 118,169 |
|
| $ | 62,303 |
|
NATIONAL ENERGY SERVICES REUNITED CORP. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)
(In US$ thousands except per share amounts)
The Company uses and presents certain key non-GAAP financial measures to evaluate its business and trends, measure performance, prepare financial projections and make strategic decisions. Included in this release are discussions of earnings before interest, income tax and depreciation and amortization adjusted for certain non-recurring and non-core expenses ("Adjusted EBITDA"), net income and diluted earnings per share ("EPS") adjusted for certain non-recurring and non-core expenses ("Adjusted Net Income" and "Adjusted Diluted EPS," respectively), as well as a reconciliation of these non-GAAP measures to net income and diluted EPS, respectively, in accordance with GAAP. The Company also discusses the non-GAAP balance sheet measure of the sum of our recorded current installments of long-term debt, short-term borrowings, and long-term debt less cash and cash equivalents ("Net Debt") in this release and provides a reconciliation to the GAAP measures of cash and cash equivalents, current installments of long-term debt, short-term borrowings, and long-term debt to Net Debt. The Company also discusses Free Cash Flow reconciled to Operating Cash Flow.
The Company believes that the presentation of Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS provides useful information to investors in assessing its financial performance and results of operations as the Company's board of directors, management and investors use Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS to compare the Company's operating performance on a consistent basis across periods by removing the effects of changes in capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization), items that do not impact the ongoing operations (transaction, integration, and startup costs) and items outside the control of its management team. Similarly, Net Debt is used by management as a liquidity measure used to illustrate the Company's debt level absent variability in cash and cash equivalents, and the Company believes that the presentation of Net Debt provides useful information to investors in assessing its financial leverage. Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS should not be considered as an alternative to operating income, net income, or diluted EPS, respectively, the most directly comparable GAAP financial measures. Net Debt also should not be considered as an alternative to GAAP measures of cash and cash equivalents, current installments of long-term debt, short-term borrowings, and long-term debt. Finally, Free Cash Flow is used by management as a liquidity measure to illustrate the Company's ability to produce cash that is available to be distributed in a discretionary manner, after excluding investments in capital assets. Free Cash Flow should not be considered as an alternative to Net cash provided by (used in) operations or Net cash provided by (used in) investing activities, respectively, the most directly comparable GAAP financial measures. Non-GAAP financial measures have important limitations as analytical tools because they exclude some but not all items that affect the most directly comparable GAAP financial measure. You should not consider non-GAAP measures in isolation or as a substitute for an analysis of the Company's results as reported under GAAP.
Table 1 - Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS
| Quarter ended September 30, 2024 |
| Quarter ended June 30, 2024 |
| Quarter ended September 30, 2023 | |||||||||||||
| Net Income |
| Diluted EPS |
| Net Income |
| Diluted EPS |
| Net Income |
| Diluted EPS | |||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Net Income |
| $ | 20,618 |
| $ | 0.22 |
| $ | 18,873 |
| $ | 0.20 |
| $ | 14,731 |
| $ | 0.16 |
Add Charges and Credits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs associated with the restatement of our 2018-2020 financial statements, including the SEC inquiry and remediation |
|
| 1,305 |
|
| 0.01 |
|
| 5,332 |
|
| 0.06 |
|
| 4,745 |
|
| 0.05 |
Impairments |
|
| 1,583 |
|
| 0.02 |
|
| - |
|
| - |
|
| - |
|
| - |
Current expected credit loss provisions |
|
| 652 |
|
| 0.01 |
|
| 2,720 |
|
| 0.03 |
|
| - |
|
| - |
Restructuring projects |
|
| 4,188 |
|
| 0.04 |
|
| - |
|
| - |
|
| - |
|
| - |
Other write-offs (recoveries) and provisions (release of provisions) |
|
| 566 |
|
| 0.01 |
|
| 431 |
|
| - |
|
| 321 |
|
| - |
Total Charges and Credits(1) |
|
| 8,294 |
|
| 0.09 |
|
| 8,483 |
|
| 0.09 |
|
| 5,066 |
|
| 0.05 |
Total Adjusted Net Income |
| $ | 28,912 |
| $ | 0.31 |
| $ | 27,356 |
| $ | 0.29 |
| $ | 19,797 |
| $ | 0.21 |
| (1) | In the quarter ended September 30, 2024, Total Charges and Credits included |
Table 2 - Reconciliation of Net Income to Adjusted EBITDA
| Quarter ended September 30, 2024 |
|
| Quarter ended June 30, 2024 |
|
| Quarter ended September 30, 2023 |
| ||||
|
|
|
|
|
|
|
|
| ||||
Net Income |
| $ | 20,618 |
|
| $ | 18,873 |
|
| $ | 14,731 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
Income Taxes |
|
| 5,291 |
|
|
| 5,988 |
|
|
| 2,748 |
|
Interest Expense, net |
|
| 9,933 |
|
|
| 9,439 |
|
|
| 12,081 |
|
Depreciation and Amortization |
|
| 35,899 |
|
|
| 35,872 |
|
|
| 36,259 |
|
Total Charges and Credits impacting Adjusted EBITDA (2) |
|
| 8,294 |
|
|
| 8,483 |
|
|
| 5,066 |
|
Total Adjusted EBITDA |
| $ | 80,035 |
|
| $ | 78,655 |
|
| $ | 70,885 |
|
| (2) | Charges and Credits impacting Adjusted EBITDA are described in Table 1 above. Charges and Credits impacting Adjusted EBITDA exclude items related to interest, income tax and depreciation and amortization. |
Table 3 - Reconciliation of Net cash provided by (used in) operating activities to Free Cash Flow
| Nine months ended September 30, 2024 |
|
| Nine months ended September 30, 2023 |
| |||
|
|
|
|
|
| |||
Net cash provided by operating activities |
| $ | 183,069 |
|
| $ | 140,439 |
|
Less: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
| (80,053 | ) |
|
| (65,824 | ) |
Free cash flow |
| $ | 103,016 |
|
| $ | 74,615 |
|
Table 4 - Reconciliation to Net Debt
| As of September 30, 2024 |
|
| As of June 30, 2024 |
|
| As of September 30, 2023 |
| ||||
|
|
|
|
|
|
|
|
| ||||
Current installments of long-term debt |
| $ | 70,546 |
|
| $ | 70,945 |
|
| $ | 68,557 |
|
Short-term borrowings |
|
| 54,587 |
|
|
| 34,797 |
|
|
| 54,807 |
|
Long-term debt |
|
| 284,183 |
|
|
| 301,331 |
|
|
| 349,112 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
| (118,169 | ) |
|
| (74,997 | ) |
|
| (62,303 | ) |
Net Debt |
| $ | 291,147 |
|
| $ | 332,076 |
|
| $ | 410,173 |
|
For inquiries regarding NESR, please contact:
Stefan Angeli or Blake Gendron
National Energy Services Reunited Corp.
832-925-3777
investors@nesr.com
SOURCE: National Energy Services Reunited Corp
View the original press release on accesswire.com
FAQ
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How much free cash flow did NESR generate in the first nine months of 2024?
What was NESR's net debt position as of September 30, 2024?
