Ranger Energy Services, Inc. Announces Q2 2023 Financial and Operational Results
- Revenue increased by 6% in Q2 2023 to $163.2 million.
- Net income was $6.1 million in Q2 2023, compared to a net loss of $0.4 million in Q2 2022.
- Adjusted EBITDA increased by 22% to $21.9 million in Q2 2023.
- The company achieved its goal of becoming net debt zero.
- Ranger Energy Services initiated a quarterly dividend of $0.05 per share of common stock.
- Year-to-date revenue increased by 16% to $320.7 million.
- Net income for the year-to-date period was $12.3 million, a 302% increase from the prior year.
- None.
Second Quarter 2023 Highlights
-
Revenue of
, a$163.2 million 6% increase from in second quarter 2022$153.6 million -
Net income of
, or$6.1 million per fully diluted share, up from a net loss of$0.24 , or$0.4 million loss per share in second quarter of 2022$0.02 -
Adjusted EBITDA1 of
, a$21.9 million 22% increase from in second quarter 2022 driven by increases in activity and pricing across segments$18.0 million -
Returned
of capital to shareholders through share repurchases representing$5.9 million 37% of free cash flow during the quarter. -
Ended the quarter with debt of
, marking the achievement of the Company’s stated goal of net debt zero.$0.3 million -
Initiating a quarterly dividend of
per share of common stock, payable on September 8, 2023 to all stockholders of record as of August 18, 2023$0.05
Year to Date 2023 Highlights
-
Revenue of
, a$320.7 million 16% increase from in the prior year$277.2 million -
Net income of
, a$12.3 million 302% increase from a net loss of in the prior year$6.1 million -
Adjusted EBITDA of
, a$42.0 million 52% increase from in the prior year driven by increases in activity and pricing across segments$27.6 million
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1 |
“Adjusted EBITDA” and “Free Cash Flow” are not presented in accordance with generally accepted accounting principles in |
Comments
Stuart Bodden, Ranger’s Chief Executive Officer, commented, “We are pleased to report another quarter of strong financial performance. Despite facing commodity price and reduced activity headwinds during the second quarter affecting the pace of our planned growth for the year, our team's resilience and strategic focus enabled us to achieve a
“Most notably during the quarter, we achieved our goal of becoming net debt zero, having paid down over
“Our continued strong operating and financial performance is a testament to our exceptional people and the differentiated value of our production cycle focus providing resiliency through cycle. We are encouraged as we look to the second half of the year by several customer discussions in flight that signal more revenue growth in the future, and we expect seasonal trends to drive increased activity in the third quarter. Taken together, we have confidence in our business model and our strong cash flow conversion, which we have demonstrated through our commitment to shareholder returns.”
STRATEGIC UPDATE
Ranger’s four pillar strategy for creating shareholder value are: maximizing cash flow, fortifying its balance sheet, growing through acquisition, and returning meaningful capital to shareholders. We made progress in each of these areas during the second quarter of 2023.
-
Maximizing Cash Flow: The Company’s focus on cash flow generation is underpinned by a capital efficient business model with strong operating leverage. The Company generated
of free cash flow during the second quarter and has generated$16 million of free cash flow on a year to date basis yielding a free cash flow conversion rate of$28 million 67% . Initiatives are underway this year to improve market penetration and operating efficiency across all segments, along with efforts to diminish the impact of seasonality in our wireline business. -
Fortifying the Balance Sheet: During the second quarter, the Company reduced debt by
and ended the quarter essentially debt free. The Company believes that minimal debt provides the ability to maximize shareholder returns through opportunistic investment and capital returns to shareholders.$15.5 million -
Exploring Growth Through Acquisition: Ranger has demonstrated a successful track record of making attractive asset acquisitions and consolidating businesses. During the second quarter, the Company saw an increase in inquiries and continued to evaluate opportunities. One such tuck-in opportunity was recently signed for
of pump down assets and support equipment with payback of less than two years. Ranger is committed to pursuing a disciplined acquisition strategy rooted in maximizing long-term value.$7.25 million -
Initiating Capital Return Framework: The Company previously announced a share repurchase and dividend framework that it believes provides the best overall value creation potential for investors with a commitment to return at least
25% of annual cash flows. During the second quarter, the Company repurchased 508,700 shares of its Class A common stock at an average of per share, representing$10.87 2% of shares outstanding. The Company intends to continue repurchasing shares in future quarters and is continuing to evaluate the best mechanism to do so. In addition, the Company will declare its first quarterly dividend of per share to holders of record in the third quarter.$0.05
PERFORMANCE SUMMARY
For the second quarter of 2023, revenue was
Cost of services for the second quarter of 2023 was
General and administrative expenses were
Net income totaled
Fully diluted earnings per share was
Adjusted EBITDA of
BUSINESS SEGMENT FINANCIAL RESULTS
High Specification Rigs
High Specification Rigs segment revenue was
Operating income was
Wireline Services
Wireline Services segment revenue was
Operating income was
Processing Solutions and Ancillary Services
Processing Solutions and Ancillary Services segment revenue was
Operating income was
BALANCE SHEET, CASH FLOW AND LIQUIDITY
As of June 30, 2023, the Company had
The Company had total debt of
Year to date Cash from Operating Activities was
FINANCIAL GUIDANCE
Based on the most recent forecasts, the Company believes that its Adjusted EBITDA and Free Cash Flow guidance remain achievable at the lower end of the published ranges. Guidance ranges have been narrowed and adjusted accordingly. The third quarter is anticipated to be similar to the prior year and the fourth quarter is anticipated to be improved from the prior year barring any extreme weather events. The Company continues to expect full-year 2023 free cash flow conversion to be approximately
($ in Millions) |
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FY 2022 Actual |
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FY 2023 Forecast |
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Updated FY 2023 Forecast |
Revenue |
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Adjusted EBITDA |
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Free Cash Flow |
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Capital Expenditures and Leases |
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Conference Call
The Company will host a conference call to discuss its results from the second quarter of 2023 on Tuesday, August 8, 2023, at 9:00 a.m. Central Time (10:00 a.m. Eastern Time). To join the conference call from within
An audio replay of the conference call will be available shortly after the conclusion of the call and will remain available for approximately seven days. The replay will also be available in the Investor Resources section of the Company’s website shortly after the conclusion of the call and will remain available for approximately seven days.
About Ranger Energy Services, Inc.
Ranger is one of the largest providers of high specification mobile rig well services, cased hole wireline services, and ancillary services in the
Cautionary Statement Concerning Forward-Looking Statements
Certain statements contained in this press release constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements represent Ranger’s expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Ranger’s control that could cause actual results to differ materially from the results discussed in the forward-looking statements.
Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, Ranger does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Ranger to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in our filings with the Securities and Exchange Commission. The risk factors and other factors noted in Ranger’s filings with the SEC could cause its actual results to differ materially from those contained in any forward-looking statement.
RANGER ENERGY SERVICES, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except share and per share amounts) |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2023 |
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2022 |
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2023 |
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2022 |
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Revenue |
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High specification rigs |
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$ |
77.6 |
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$ |
76.0 |
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$ |
155.1 |
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$ |
140.9 |
|
Wireline services |
|
|
54.5 |
|
|
|
49.5 |
|
|
|
104.4 |
|
|
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88.1 |
|
Processing solutions and ancillary services |
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31.1 |
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|
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28.1 |
|
|
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61.2 |
|
|
|
48.2 |
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Total revenue |
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163.2 |
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|
153.6 |
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320.7 |
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277.2 |
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Operating expenses |
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Cost of services (exclusive of depreciation and amortization): |
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High specification rigs |
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62.0 |
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61.8 |
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|
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122.1 |
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|
|
112.6 |
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Wireline services |
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48.8 |
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45.2 |
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94.5 |
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85.6 |
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Processing solutions and ancillary services |
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25.5 |
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23.0 |
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50.6 |
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39.8 |
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Total cost of services |
|
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136.3 |
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130.0 |
|
|
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267.2 |
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238.0 |
|
General and administrative |
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7.3 |
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|
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11.2 |
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15.7 |
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21.4 |
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Depreciation and amortization |
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8.7 |
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11.4 |
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18.7 |
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23.0 |
|
Impairment of fixed assets |
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— |
|
|
|
1.1 |
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|
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— |
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|
|
1.1 |
|
(Gain) loss on sale of assets |
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|
(0.5 |
) |
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|
2.1 |
|
|
|
(1.5 |
) |
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|
1.1 |
|
Total operating expenses |
|
|
151.8 |
|
|
|
155.8 |
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|
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300.1 |
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|
|
284.6 |
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Operating income (loss) |
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11.4 |
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(2.2 |
) |
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20.6 |
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(7.4 |
) |
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Other (income) expenses |
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Interest expense, net |
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0.9 |
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1.8 |
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2.1 |
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3.9 |
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Loss on debt retirement |
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2.4 |
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— |
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2.4 |
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— |
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Gain on bargain purchase, net of tax |
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— |
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(2.8 |
) |
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— |
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(2.8 |
) |
Total other (income) expenses, net |
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3.3 |
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(1.0 |
) |
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4.5 |
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1.1 |
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Income (loss) before income tax expense (benefit) |
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8.1 |
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(1.2 |
) |
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16.1 |
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(8.5 |
) |
Income tax expense (benefit) |
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2.0 |
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(0.8 |
) |
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3.8 |
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|
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(2.4 |
) |
Net income (loss) |
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6.1 |
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(0.4 |
) |
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12.3 |
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(6.1 |
) |
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Income (loss) per common share: |
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Basic |
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$ |
0.25 |
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$ |
(0.02 |
) |
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$ |
0.49 |
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$ |
(0.29 |
) |
Diluted |
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$ |
0.24 |
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$ |
(0.02 |
) |
|
$ |
0.49 |
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|
$ |
(0.29 |
) |
Weighted average common shares outstanding |
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Basic |
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24,840,569 |
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23,581,466 |
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24,890,178 |
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21,041,300 |
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Diluted |
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25,188,123 |
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23,581,466 |
|
|
|
25,249,026 |
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|
21,041,300 |
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RANGER ENERGY SERVICES, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except share and per share amounts) |
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June 30, 2023 |
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December 31, 2022 |
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Assets |
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Cash and cash equivalents |
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$ |
6.4 |
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$ |
3.7 |
|
Accounts receivable, net |
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|
74.9 |
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|
|
91.2 |
|
Contract assets |
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31.1 |
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|
26.9 |
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Inventory |
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|
7.5 |
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|
5.9 |
|
Prepaid expenses |
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|
7.2 |
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|
9.2 |
|
Assets held for sale |
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|
1.0 |
|
|
|
3.2 |
|
Total current assets |
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|
128.1 |
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|
140.1 |
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|
|
|
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|
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Property and equipment, net |
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|
218.8 |
|
|
|
221.6 |
|
Intangible assets, net |
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|
6.7 |
|
|
|
7.1 |
|
Operating leases, right-of-use assets |
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|
10.0 |
|
|
|
11.2 |
|
Other assets |
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|
1.2 |
|
|
|
1.6 |
|
Total assets |
|
$ |
364.8 |
|
|
$ |
381.6 |
|
|
|
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|
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Liabilities and Stockholders' Equity |
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|
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Accounts payable |
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|
22.0 |
|
|
|
24.3 |
|
Accrued expenses |
|
|
31.1 |
|
|
|
36.1 |
|
Other financing liability, current portion |
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|
0.6 |
|
|
|
0.7 |
|
Long-term debt, current portion |
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|
0.3 |
|
|
|
6.8 |
|
Other current liabilities |
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|
6.3 |
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|
6.6 |
|
Total current liabilities |
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60.3 |
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|
74.5 |
|
|
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Operating leases, right-of-use obligations |
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|
8.4 |
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|
9.6 |
|
Other financing liability |
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|
11.3 |
|
|
|
11.6 |
|
Long-term debt, net |
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|
— |
|
|
|
11.6 |
|
Other long-term liabilities |
|
|
10.8 |
|
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|
8.1 |
|
Total liabilities |
|
$ |
90.8 |
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|
$ |
115.4 |
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Commitments and contingencies |
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Stockholders' equity |
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|
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Preferred stock, |
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— |
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|
— |
|
Class A Common Stock, |
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|
0.3 |
|
|
|
0.3 |
|
Class B Common Stock, |
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— |
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|
— |
|
Less: Class A Common Stock held in treasury at cost; 1,099,928 treasury shares as of June 30, 2023 and 551,828 treasury shares as of December 31, 2022 |
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|
(9.7 |
) |
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|
(3.8 |
) |
Retained earnings |
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|
19.5 |
|
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|
7.1 |
|
Additional paid-in capital |
|
|
263.9 |
|
|
|
262.6 |
|
Total controlling stockholders' equity |
|
|
274.0 |
|
|
|
266.2 |
|
Total liabilities and stockholders' equity |
|
$ |
364.8 |
|
|
$ |
381.6 |
|
RANGER ENERGY SERVICES, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (in millions) |
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Six Months Ended June 30, |
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2023 |
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2022 |
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Cash Flows from Operating Activities |
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|
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Net income (loss) |
|
$ |
12.3 |
|
|
$ |
(6.1 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
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|
|
|
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Depreciation and amortization |
|
|
18.7 |
|
|
|
23.0 |
|
Equity based compensation |
|
|
2.4 |
|
|
|
1.7 |
|
(Gain) loss on disposal of property and equipment |
|
|
(1.5 |
) |
|
|
1.1 |
|
Impairment of fixed assets |
|
|
— |
|
|
|
1.1 |
|
Gain on bargain purchase, net of tax |
|
|
— |
|
|
|
(2.8 |
) |
Deferred income tax expense |
|
|
3.8 |
|
|
|
— |
|
Loss on debt retirement |
|
|
2.4 |
|
|
|
— |
|
Other expense, net |
|
|
0.9 |
|
|
|
0.6 |
|
Changes in operating assets and liabilities |
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|
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|
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Accounts receivable |
|
|
15.8 |
|
|
|
(3.7 |
) |
Contract assets |
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|
(4.2 |
) |
|
|
(14.5 |
) |
Inventory |
|
|
(1.8 |
) |
|
|
(1.7 |
) |
Prepaid expenses and other current assets |
|
|
2.0 |
|
|
|
5.0 |
|
Other assets |
|
|
0.9 |
|
|
|
(1.2 |
) |
Accounts payable |
|
|
(2.3 |
) |
|
|
6.2 |
|
Accrued expenses |
|
|
(7.2 |
) |
|
|
— |
|
Other current liabilities |
|
|
(0.1 |
) |
|
|
(0.2 |
) |
Other long-term liabilities |
|
|
(1.2 |
) |
|
|
(0.7 |
) |
Net cash provided by operating activities |
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|
40.9 |
|
|
|
7.8 |
|
|
|
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Cash Flows from Investing Activities |
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|
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Purchase of property and equipment |
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|
(12.9 |
) |
|
|
(5.7 |
) |
Proceeds from disposal of property and equipment |
|
|
4.7 |
|
|
|
13.9 |
|
Net cash provided by (used in) investing activities |
|
|
(8.2 |
) |
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|
8.2 |
|
|
|
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Cash Flows from Financing Activities |
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|
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|
||||
Borrowings under Credit Facility |
|
|
298.6 |
|
|
|
283.3 |
|
Principal payments on Credit Facility |
|
|
(301.1 |
) |
|
|
(276.4 |
) |
Principal payments on Eclipse M&E Term Loan |
|
|
(10.4 |
) |
|
|
(0.8 |
) |
Principal payments under Eclipse Term Loan B |
|
|
— |
|
|
|
(9.4 |
) |
Principal payments on Secured Promissory Note |
|
|
(6.2 |
) |
|
|
(2.7 |
) |
Principal payments on financing lease obligations |
|
|
(2.7 |
) |
|
|
(2.3 |
) |
Principal payments on other financing liabilities |
|
|
(0.5 |
) |
|
|
(1.8 |
) |
Shares withheld on equity transactions |
|
|
(0.9 |
) |
|
|
(1.2 |
) |
Payments on Installment Purchases |
|
|
(0.2 |
) |
|
|
(0.2 |
) |
Repurchase of Class A Common Stock |
|
|
(5.9 |
) |
|
|
— |
|
Deferred financing costs on Wells Fargo |
|
|
(0.7 |
) |
|
|
— |
|
Net cash used in financing activities |
|
|
(30.0 |
) |
|
|
(11.5 |
) |
|
|
|
|
|
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Increase in cash and cash equivalents |
|
|
2.7 |
|
|
|
4.5 |
|
Cash and cash equivalents, Beginning of Period |
|
|
3.7 |
|
|
|
0.6 |
|
Cash and cash equivalents, End of Period |
|
$ |
6.4 |
|
|
$ |
5.1 |
|
|
|
|
|
|
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Supplemental Cash Flow Information |
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|
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|
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Interest paid |
|
$ |
0.6 |
|
|
$ |
0.6 |
|
Supplemental Disclosure of Non-cash Investing and Financing Activities |
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|
|
|
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Additions to fixed assets through installment purchases and financing leases |
|
$ |
(3.4 |
) |
|
$ |
(2.0 |
) |
Additions to fixed assets through asset trades |
|
$ |
(1.1 |
) |
|
$ |
— |
|
RANGER ENERGY SERVICES, INC.
SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Note Regarding Non‑GAAP Financial Measure
The Company utilizes certain non-GAAP financial measures that management believes to be insightful in understanding the Company’s financial results. These financial measures, which include Adjusted EBITDA and Free Cash Flow, should not be construed as being more important than, or as an alternative for, comparable
Adjusted EBITDA
We believe Adjusted EBITDA is a useful performance measure because it allows for an effective evaluation of our operating performance when compared to our peers, without regard to our financing methods or capital structure. We exclude the items listed below from net income or loss in arriving at Adjusted EBITDA because these amounts can vary substantially within our industry depending upon accounting methods, book values of assets, capital structures and the method by which the assets were acquired. 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 reflected in Adjusted EBITDA.
We define Adjusted EBITDA as net income or loss before net interest expense, income tax provision or benefit, depreciation and amortization, equity‑based compensation, acquisition-related, severance and reorganization costs, gain or loss on disposal of assets, and certain other non-cash items that we do not view as indicative of our ongoing performance.
The following tables are a reconciliation of net income or loss to Adjusted EBITDA for the respective periods:
|
|
High
|
|
Wireline
|
|
Processing
|
|
Other |
|
Total |
|||||||
|
|
Three Months Ended June 30, 2023 |
|||||||||||||||
Net income (loss) |
|
$ |
11.5 |
|
$ |
2.8 |
|
$ |
4.2 |
|
$ |
(12.4 |
) |
|
$ |
6.1 |
|
Interest expense, net |
|
|
— |
|
|
— |
|
|
— |
|
|
0.9 |
|
|
|
0.9 |
|
Income tax expense |
|
|
— |
|
|
— |
|
|
— |
|
|
2.0 |
|
|
|
2.0 |
|
Depreciation and amortization |
|
|
4.1 |
|
|
2.9 |
|
|
1.4 |
|
|
0.3 |
|
|
|
8.7 |
|
EBITDA |
|
|
15.6 |
|
|
5.7 |
|
|
5.6 |
|
|
(9.2 |
) |
|
|
17.7 |
|
Equity based compensation |
|
|
— |
|
|
— |
|
|
— |
|
|
1.2 |
|
|
|
1.2 |
|
Loss on retirement of debt |
|
|
— |
|
|
— |
|
|
— |
|
|
2.4 |
|
|
|
2.4 |
|
Gain on disposal of property and equipment |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.5 |
) |
|
|
(0.5 |
) |
Severance and reorganization costs |
|
|
— |
|
|
— |
|
|
— |
|
|
0.2 |
|
|
|
0.2 |
|
Acquisition related costs |
|
|
— |
|
|
— |
|
|
— |
|
|
0.9 |
|
|
|
0.9 |
|
Adjusted EBITDA |
|
$ |
15.6 |
|
$ |
5.7 |
|
$ |
5.6 |
|
$ |
(5.0 |
) |
|
$ |
21.9 |
|
|
|
High
|
|
Wireline
|
|
Processing
|
|
Other |
|
Total |
|||||||
|
|
Three Months Ended June 30, 2022 |
|||||||||||||||
Net income (loss) |
|
$ |
6.1 |
|
$ |
1.5 |
|
$ |
5.1 |
|
$ |
(13.1 |
) |
|
$ |
(0.4 |
) |
Interest expense, net |
|
|
— |
|
|
— |
|
|
— |
|
|
1.8 |
|
|
|
1.8 |
|
Income tax benefit |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.8 |
) |
|
|
(0.8 |
) |
Depreciation and amortization |
|
|
8.1 |
|
|
2.8 |
|
|
— |
|
|
0.5 |
|
|
|
11.4 |
|
EBITDA |
|
|
14.2 |
|
|
4.3 |
|
|
5.1 |
|
|
(11.6 |
) |
|
|
12.0 |
|
Impairment of fixed assets |
|
|
— |
|
|
— |
|
|
— |
|
|
1.1 |
|
|
|
1.1 |
|
Equity based compensation |
|
|
— |
|
|
— |
|
|
— |
|
|
0.9 |
|
|
|
0.9 |
|
Gain on disposal of property and equipment |
|
|
— |
|
|
— |
|
|
— |
|
|
2.1 |
|
|
|
2.1 |
|
Bargain purchase gain, net of tax |
|
|
— |
|
|
— |
|
|
— |
|
|
(2.8 |
) |
|
|
(2.8 |
) |
Severance and reorganization costs |
|
|
— |
|
|
— |
|
|
— |
|
|
0.5 |
|
|
|
0.5 |
|
Acquisition related costs |
|
|
— |
|
|
— |
|
|
— |
|
|
3.3 |
|
|
|
3.3 |
|
Legal fees and settlements |
|
|
— |
|
|
— |
|
|
— |
|
|
0.9 |
|
|
|
0.9 |
|
Adjusted EBITDA |
|
$ |
14.2 |
|
$ |
4.3 |
|
$ |
5.1 |
|
$ |
(5.6 |
) |
|
$ |
18.0 |
|
|
|
High
|
|
Wireline
|
|
Processing
|
|
Other |
|
Total |
|||||||
|
Six Months Ended June 30, 2023 |
||||||||||||||||
Net income (loss) |
|
$ |
23.4 |
|
$ |
4.6 |
|
$ |
7.6 |
|
$ |
(23.3 |
) |
|
$ |
12.3 |
|
Interest expense, net |
|
|
— |
|
|
— |
|
|
— |
|
|
2.1 |
|
|
|
2.1 |
|
Income tax expense |
|
|
— |
|
|
— |
|
|
— |
|
|
3.8 |
|
|
|
3.8 |
|
Depreciation and amortization |
|
|
9.6 |
|
|
5.3 |
|
|
3.0 |
|
|
0.8 |
|
|
|
18.7 |
|
EBITDA |
|
|
33.0 |
|
|
9.9 |
|
|
10.6 |
|
|
(16.6 |
) |
|
|
36.9 |
|
Equity based compensation |
|
|
— |
|
|
— |
|
|
— |
|
|
2.3 |
|
|
|
2.3 |
|
Loss on retirement of debt |
|
|
— |
|
|
— |
|
|
— |
|
|
2.4 |
|
|
|
2.4 |
|
Gain on disposal of property and equipment |
|
|
— |
|
|
— |
|
|
— |
|
|
(1.5 |
) |
|
|
(1.5 |
) |
Severance and reorganization costs |
|
|
— |
|
|
— |
|
|
— |
|
|
0.4 |
|
|
|
0.4 |
|
Acquisition related costs |
|
|
— |
|
|
— |
|
|
— |
|
|
1.5 |
|
|
|
1.5 |
|
Adjusted EBITDA |
|
$ |
33.0 |
|
$ |
9.9 |
|
$ |
10.6 |
|
$ |
(11.5 |
) |
|
$ |
42.0 |
|
|
|
High
|
|
Wireline
|
|
Processing
|
|
Other |
|
Total |
||||||||
|
|
Six Months Ended June 30, 2022 |
||||||||||||||||
Net income (loss) |
|
$ |
13.8 |
|
$ |
(3.0 |
) |
|
$ |
6.4 |
|
$ |
(23.3 |
) |
|
$ |
(6.1 |
) |
Interest expense, net |
|
|
— |
|
|
— |
|
|
|
— |
|
|
3.9 |
|
|
|
3.9 |
|
Income tax benefit |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(2.4 |
) |
|
|
(2.4 |
) |
Depreciation and amortization |
|
|
14.5 |
|
|
5.5 |
|
|
|
2.0 |
|
|
1.0 |
|
|
|
23.0 |
|
EBITDA |
|
|
28.3 |
|
|
2.5 |
|
|
|
8.4 |
|
|
(20.8 |
) |
|
|
18.4 |
|
Impairment of fixed assets |
|
|
— |
|
|
— |
|
|
|
— |
|
|
1.1 |
|
|
|
1.1 |
|
Equity based compensation |
|
|
— |
|
|
— |
|
|
|
— |
|
|
1.7 |
|
|
|
1.7 |
|
Loss on disposal of property and equipment |
|
|
— |
|
|
— |
|
|
|
— |
|
|
1.1 |
|
|
|
1.1 |
|
Bargain purchase gain, net of tax |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(2.8 |
) |
|
|
(2.8 |
) |
Severance and reorganization costs |
|
|
— |
|
|
— |
|
|
|
— |
|
|
0.5 |
|
|
|
0.5 |
|
Acquisition related costs |
|
|
— |
|
|
— |
|
|
|
— |
|
|
6.5 |
|
|
|
6.5 |
|
Legal fees and settlements |
|
|
— |
|
|
— |
|
|
|
— |
|
|
1.1 |
|
|
|
1.1 |
|
Adjusted EBITDA |
|
$ |
28.3 |
|
$ |
2.5 |
|
|
$ |
8.4 |
|
$ |
(11.6 |
) |
|
$ |
27.6 |
|
Free Cash Flow
We believe free cash flow is an important financial measure for use in evaluating the Company’s financial performance, as it measures our ability to generate additional cash from our business operations. Free cash flow should be considered in addition to, rather than as a substitute for, net income as a measure of our performance or net cash provided by operating activities as a measure of our liquidity. Additionally, our definition of free cash flow is limited and does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other obligations or payments made for business acquisitions. Therefore, we believe it is important to view free cash flow as supplemental to our entire statement of cash flows.
The following table is a reconciliation of consolidated operating cash flows to Free Cash Flow for the six months ended June 30, 2023 and 2022, in millions:
|
|
Six Months Ended |
||||||
|
|
June 30, 2023 |
|
June 30, 2022 |
||||
Net cash provided by operating activities |
|
$ |
40.9 |
|
|
$ |
7.8 |
|
Purchase of property and equipment |
|
|
(12.9 |
) |
|
|
(5.7 |
) |
Free cash Flow |
|
$ |
28.0 |
|
|
$ |
2.1 |
|
|
|
|
|
|
||||
EBITDA |
|
$ |
42.0 |
|
|
$ |
27.6 |
|
Free cash flow conversion - Free cash flow as a percentage of EBITDA |
|
|
67 |
% |
|
|
8 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230807816492/en/
Melissa Cougle
Chief Financial Officer
(713) 935-8900
InvestorRelations@rangerenergy.com
Source: Ranger Energy Services, Inc.
FAQ
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