Solaris Oilfield Infrastructure Announces Third Quarter 2021 Results
Solaris Oilfield Infrastructure reported a net income of $1.4 million or $0.03 per diluted share for Q3 2021, a significant improvement from a net loss of $5.6 million in Q3 2020. Revenues increased by 40% to $49.4 million, driven by higher system deployment and logistics activity. Adjusted EBITDA stood at $7.7 million, up 18% from the previous quarter. The company paid a quarterly dividend of $0.105 per share on September 24, 2021, marking 12 consecutive dividend payments since 2018. Total liquidity was $92.8 million as of September 30, 2021.
- Net income of $1.4 million for Q3 2021, significantly better than Q3 2020 net loss.
- Revenues up 40% to $49.4 million compared to the previous quarter.
- Adjusted EBITDA increased to $7.7 million, an 18% rise from Q2 2021.
- Paid a regular dividend of $0.105 per share on September 24, 2021.
- Strong liquidity with $92.8 million available as of September 30, 2021.
- Adjusted pro forma net loss of $0.6 million for Q3 2021, compared to previous losses but still negative.
Third Quarter 2021 Highlights
-
Net income of
$1.4 million $0.03 September 30, 2021 ; Adjusted pro forma net loss of$0.6 million $(0.01) September 30, 2021 (see below for a reconciliation of Adjusted pro forma net income to net income attributable to Solaris).
-
Adjusted EBITDA of
$7.7 million September 30, 2021
-
Net cash provided by operating activities of
$7.7 million September 30, 2021
-
Positive free cash flow of
$1.7 million September 30, 2021
-
Paid a regular quarterly dividend of
$0.10 5September 24, 2021
Operational Update and Outlook
During the third quarter of 2021, an average of 59 mobile proppant management systems were fully utilized, which was up
“We are pleased with another quarter of solid execution from the Solaris team and are excited about how industry fundamentals are shaping up and pointing to a healthy backdrop for activity in 2022,” Solaris’ Chairman and Chief Executive Officer
Third Quarter 2021 Financial Review
Solaris reported net income of
Revenues were
Adjusted EBITDA for third quarter 2021 was
Capital Expenditures, Free Cash Flow and Liquidity
Capital expenditures in the third quarter 2021 were
Free cash flow (defined as net cash provided by operating activities less investment in property, plant and equipment) during third quarter 2021 was
As of
Shareholder Returns
On
Conference Call
The Company will host a conference call to discuss its third quarter 2021 results on
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. It can be accessed by dialing (877) 344-7529 within
About
Website Disclosure
We use our website (www.solarisoilfield.com) as a routine channel of distribution of company information, including news releases, analyst presentations, and supplemental financial information, as a means of disclosing material non-public information and for complying with our disclosure obligations under the
None of the information provided on our website, in our press releases, public conference calls and webcasts, or through social media channels is incorporated by reference into, or deemed to be a part of, this Current Report on Form 8-K or will be incorporated by reference into any other report or document we file with the
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Examples of forward-looking statements include, but are not limited to, our business strategy, our industry, our future profitability, the various risks and uncertainties associated with the extraordinary market environment and impacts resulting from the volatility in global oil markets and the COVID-19 pandemic, expected capital expenditures and the impact of such expenditures on performance, management changes, current and potential future long-term contracts and our future business and financial performance. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include, but are not limited to the factors discussed or referenced in our filings made from time to time with the
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
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|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2021 |
|
2020 |
||||||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
System rental |
|
$ |
16,091 |
|
|
$ |
9,197 |
|
|
$ |
14,323 |
|
|
$ |
44,063 |
|
|
$ |
40,720 |
|
System services |
|
|
32,990 |
|
|
|
10,855 |
|
|
|
20,616 |
|
|
|
68,317 |
|
|
|
35,231 |
|
Transloading services |
|
|
86 |
|
|
|
310 |
|
|
|
38 |
|
|
|
239 |
|
|
|
1,039 |
|
Inventory software services |
|
|
210 |
|
|
|
169 |
|
|
|
202 |
|
|
|
621 |
|
|
|
710 |
|
Total revenue |
|
|
49,377 |
|
|
|
20,531 |
|
|
|
35,179 |
|
|
|
113,240 |
|
|
|
77,700 |
|
Operating costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cost of system rental (excluding depreciation and amortization) |
|
|
2,536 |
|
|
|
1,181 |
|
|
|
1,556 |
|
|
|
5,704 |
|
|
|
4,018 |
|
Cost of system services (excluding depreciation and amortization) |
|
|
35,617 |
|
|
|
13,126 |
|
|
|
23,282 |
|
|
|
76,151 |
|
|
|
43,269 |
|
Cost of transloading services (excluding depreciation and amortization) |
|
|
220 |
|
|
|
243 |
|
|
|
197 |
|
|
|
672 |
|
|
|
783 |
|
Cost of inventory software services (excluding depreciation and amortization) |
|
|
87 |
|
|
|
97 |
|
|
|
100 |
|
|
|
289 |
|
|
|
364 |
|
Depreciation and amortization |
|
|
6,842 |
|
|
|
6,594 |
|
|
|
6,752 |
|
|
|
20,288 |
|
|
|
20,378 |
|
Selling, general and administrative (excluding depreciation and amortization) |
|
|
4,760 |
|
|
|
3,840 |
|
|
|
4,964 |
|
|
|
14,326 |
|
|
|
12,212 |
|
Impairment loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
47,828 |
|
Other operating (income) expenses (1) |
|
|
(2,690 |
) |
|
|
1,856 |
|
|
|
360 |
|
|
|
(2,074 |
) |
|
|
5,329 |
|
Total operating costs and expenses |
|
|
47,372 |
|
|
|
26,937 |
|
|
|
37,211 |
|
|
|
115,356 |
|
|
|
134,181 |
|
Operating income (loss) |
|
|
2,005 |
|
|
|
(6,406 |
) |
|
|
(2,032 |
) |
|
|
(2,116 |
) |
|
|
(56,481 |
) |
Interest income (expense), net |
|
|
(66 |
) |
|
|
(40 |
) |
|
|
(55 |
) |
|
|
(170 |
) |
|
|
36 |
|
Total other income (expense) |
|
|
(66 |
) |
|
|
(40 |
) |
|
|
(55 |
) |
|
|
(170 |
) |
|
|
36 |
|
Income (loss) before income tax expense |
|
|
1,939 |
|
|
|
(6,446 |
) |
|
|
(2,087 |
) |
|
|
(2,286 |
) |
|
|
(56,445 |
) |
Provision (benefit) for income taxes |
|
|
507 |
|
|
|
(843 |
) |
|
|
(217 |
) |
|
|
77 |
|
|
|
(8,193 |
) |
Net income (loss) |
|
|
1,432 |
|
|
|
(5,603 |
) |
|
|
(1,870 |
) |
|
|
(2,363 |
) |
|
|
(48,252 |
) |
Less: net (income) loss related to non-controlling interests |
|
|
(558 |
) |
|
|
2,320 |
|
|
|
659 |
|
|
|
857 |
|
|
|
20,347 |
|
Net income (loss) attributable to Solaris |
|
$ |
874 |
|
|
$ |
(3,283 |
) |
|
$ |
(1,211 |
) |
|
$ |
(1,506 |
) |
|
$ |
(27,905 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Earnings per share of Class A common stock - basic |
|
$ |
0.03 |
|
|
$ |
(0.12 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.97 |
) |
Earnings per share of Class A common stock - diluted |
|
$ |
0.03 |
|
|
$ |
(0.12 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.97 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic weighted average shares of Class A common stock outstanding |
|
|
31,058 |
|
|
|
28,787 |
|
|
|
30,984 |
|
|
|
30,671 |
|
|
|
28,912 |
|
Diluted weighted average shares of Class A common stock outstanding |
|
|
31,058 |
|
|
|
28,787 |
|
|
|
30,984 |
|
|
|
30,671 |
|
|
|
28,912 |
|
1) |
Other operating (income) expenses are primarily related to a gain related to employee retention credits, offset by credit losses, loss on sale of assets and costs associated with workforce reductions. |
CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts) (Unaudited) |
||||||
|
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|
|
|
|
|
|
|
|
|
|
||
|
|
2021 |
|
2020 |
||
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
42,831 |
|
$ |
60,366 |
Accounts receivable, net of allowances for credit losses of |
|
|
37,461 |
|
|
18,243 |
Prepaid expenses and other current assets |
|
|
6,337 |
|
|
2,169 |
Inventories |
|
|
1,223 |
|
|
954 |
Total current assets |
|
|
87,852 |
|
|
81,732 |
Property, plant and equipment, net |
|
|
240,554 |
|
|
245,884 |
Non-current inventories |
|
|
2,805 |
|
|
3,318 |
Operating lease right-of-use assets |
|
|
4,317 |
|
|
4,708 |
|
|
|
13,004 |
|
|
13,004 |
Intangible assets, net |
|
|
2,398 |
|
|
2,982 |
Deferred tax assets |
|
|
63,499 |
|
|
59,805 |
Other assets |
|
|
340 |
|
|
463 |
Total assets |
|
$ |
414,769 |
|
$ |
411,896 |
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
13,668 |
|
$ |
6,863 |
Accrued liabilities |
|
|
18,125 |
|
|
11,986 |
Current portion of payables related to Tax Receivable Agreement |
|
|
589 |
|
|
606 |
Current portion of lease liabilities |
|
|
705 |
|
|
647 |
Current portion of finance lease liabilities |
|
|
30 |
|
|
30 |
Other current liabilities |
|
|
567 |
|
|
75 |
Total current liabilities |
|
|
33,684 |
|
|
20,207 |
Lease liabilities, net of current |
|
|
6,843 |
|
|
7,419 |
Finance lease liabilities, net of current |
|
|
77 |
|
|
100 |
Payables related to Tax Receivable Agreement |
|
|
72,925 |
|
|
68,097 |
Other long-term liabilities |
|
|
564 |
|
|
594 |
Total liabilities |
|
|
114,093 |
|
|
96,417 |
Stockholders' equity: |
|
|
|
|
|
|
Preferred stock, |
|
|
— |
|
|
— |
Class A common stock, |
|
|
311 |
|
|
290 |
Class B common stock, |
|
|
— |
|
|
— |
Additional paid-in capital |
|
|
195,862 |
|
|
180,415 |
Retained earnings |
|
|
8,640 |
|
|
20,549 |
Total stockholders' equity attributable to Solaris and members' equity |
|
|
204,813 |
|
|
201,254 |
Non-controlling interest |
|
|
95,863 |
|
|
114,225 |
Total stockholders' equity |
|
|
300,676 |
|
|
315,479 |
Total liabilities and stockholders' equity |
|
$ |
414,769 |
|
$ |
411,896 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Nine Months Ended
|
|
Three Months
|
|
Three Months
|
||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2021 |
||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net (loss) income |
|
$ |
(2,363 |
) |
|
$ |
(48,252 |
) |
|
$ |
1,432 |
|
|
$ |
(1,870 |
) |
Adjustment to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
20,288 |
|
|
|
20,378 |
|
|
|
6,843 |
|
|
|
6,752 |
|
Impairment loss |
|
|
— |
|
|
|
47,828 |
|
|
|
— |
|
|
|
— |
|
Loss on disposal of asset |
|
|
113 |
|
|
|
1,439 |
|
|
|
(4 |
) |
|
|
99 |
|
Stock-based compensation |
|
|
3,907 |
|
|
|
3,732 |
|
|
|
1,355 |
|
|
|
1,353 |
|
Amortization of debt issuance costs |
|
|
132 |
|
|
|
132 |
|
|
|
44 |
|
|
|
40 |
|
Allowance for credit losses |
|
|
630 |
|
|
|
2,880 |
|
|
|
31 |
|
|
|
316 |
|
Deferred income tax expense |
|
|
(273 |
) |
|
|
(8,299 |
) |
|
|
334 |
|
|
|
(305 |
) |
Other |
|
|
(153 |
) |
|
|
(151 |
) |
|
|
(8 |
) |
|
|
(151 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accounts receivable |
|
|
(19,847 |
) |
|
|
17,630 |
|
|
|
(6,150 |
) |
|
|
(10,237 |
) |
Prepaid expenses and other assets |
|
|
(3,266 |
) |
|
|
1,876 |
|
|
|
(2,524 |
) |
|
|
(977 |
) |
Inventories |
|
|
(714 |
) |
|
|
(359 |
) |
|
|
371 |
|
|
|
(463 |
) |
Accounts payable |
|
|
7,076 |
|
|
|
5,245 |
|
|
|
(164 |
) |
|
|
2,184 |
|
Accrued liabilities |
|
|
6,167 |
|
|
|
(6,069 |
) |
|
|
6,096 |
|
|
|
4,533 |
|
Net cash provided by operating activities |
|
|
11,697 |
|
|
|
38,010 |
|
|
|
7,656 |
|
|
|
1,275 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment in property, plant and equipment |
|
|
(13,702 |
) |
|
|
(2,901 |
) |
|
|
(5,985 |
) |
|
|
(5,070 |
) |
Proceeds from disposal of assets |
|
|
42 |
|
|
|
724 |
|
|
|
2 |
|
|
|
— |
|
Cash received from insurance proceeds |
|
|
35 |
|
|
|
53 |
|
|
|
29 |
|
|
|
6 |
|
Net cash used in investing activities |
|
|
(13,625 |
) |
|
|
(2,124 |
) |
|
|
(5,954 |
) |
|
|
(5,064 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Distribution and dividend paid to |
|
|
(14,400 |
) |
|
|
(14,267 |
) |
|
|
(4,806 |
) |
|
|
(4,797 |
) |
Share repurchases |
|
|
— |
|
|
|
(26,717 |
) |
|
|
— |
|
|
|
— |
|
Payments under finance leases |
|
|
(23 |
) |
|
|
(24 |
) |
|
|
(11 |
) |
|
|
(5 |
) |
Payments under insurance premium financing |
|
|
(410 |
) |
|
|
— |
|
|
|
(246 |
) |
|
|
(164 |
) |
Proceeds from stock option exercises |
|
|
12 |
|
|
|
64 |
|
|
|
— |
|
|
|
— |
|
Payments for shares withheld for taxes from RSU vesting and cancelled |
|
|
(786 |
) |
|
|
(276 |
) |
|
|
(84 |
) |
|
|
(29 |
) |
Payments related to purchase of treasury stock |
|
|
— |
|
|
|
(454 |
) |
|
|
— |
|
|
|
— |
|
Distribution to |
|
|
— |
|
|
|
(150 |
) |
|
|
— |
|
|
|
— |
|
Net cash used in financing activities |
|
|
(15,607 |
) |
|
|
(41,824 |
) |
|
|
(5,147 |
) |
|
|
(4,995 |
) |
Net (decrease) increase in cash and cash equivalents |
|
|
(17,535 |
) |
|
|
(5,938 |
) |
|
|
(3,445 |
) |
|
|
(8,784 |
) |
Cash and cash equivalents at beginning of period |
|
|
60,366 |
|
|
|
66,882 |
|
|
|
46,276 |
|
|
|
55,060 |
|
Cash and cash equivalents at end of period |
|
$ |
42,831 |
|
|
$ |
60,944 |
|
|
$ |
42,831 |
|
|
$ |
46,276 |
|
Non-cash activities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Employee retention credit |
|
$ |
1,900 |
|
|
$ |
— |
|
|
$ |
1,900 |
|
|
$ |
— |
|
Investing: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Capitalized depreciation in property, plant and equipment |
|
|
2,260 |
|
|
|
359 |
|
|
|
1,971 |
|
|
|
146 |
|
Capitalized stock based compensation |
|
|
228 |
|
|
|
198 |
|
|
|
77 |
|
|
|
78 |
|
Property and equipment additions incurred but not paid at period-end |
|
|
323 |
|
|
|
12 |
|
|
|
323 |
|
|
|
612 |
|
Property, plant and equipment additions transferred from inventory |
|
|
958 |
|
|
|
359 |
|
|
|
30 |
|
|
|
536 |
|
Financing: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Insurance premium financing |
|
|
410 |
|
|
|
— |
|
|
|
410 |
|
|
|
738 |
|
Cash paid for: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest |
|
|
99 |
|
|
|
99 |
|
|
|
33 |
|
|
|
33 |
|
Income taxes |
|
|
325 |
|
|
|
796 |
|
|
|
— |
|
|
|
325 |
|
RECONCILIATION AND CALCULATION OF NON-GAAP FINANCIAL AND OPERATIONAL MEASURES
(In thousands)
(Unaudited)
EBITDA AND ADJUSTED EBITDA
We view EBITDA and Adjusted EBITDA as important indicators of performance. We define EBITDA as net income, plus (i) depreciation and amortization expense, (ii) interest expense and (iii) income tax expense, including franchise taxes. We define Adjusted EBITDA as EBITDA plus (i) stock-based compensation expense and (ii) certain non-cash items and extraordinary, unusual or non-recurring gains, losses or expenses.
We believe that our presentation of EBITDA and Adjusted EBITDA provides useful information to investors in assessing our financial condition and results of operations. Net income is the GAAP measure most directly comparable to EBITDA and Adjusted EBITDA. EBITDA and Adjusted EBITDA should not be considered alternatives to net income presented in accordance with GAAP. Because EBITDA and Adjusted EBITDA may be defined differently by other companies in our industry, our definitions of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. The following table presents a reconciliation of net income to EBITDA and Adjusted EBITDA for each of the periods indicated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Three months ended |
|
Nine months ended |
||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2021 |
|
2020 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income (loss) |
|
$ |
1,432 |
|
|
$ |
(5,603 |
) |
|
$ |
(1,870 |
) |
|
$ |
(2,363 |
) |
|
$ |
(48,252 |
) |
Depreciation and amortization |
|
|
6,842 |
|
|
|
6,594 |
|
|
|
6,752 |
|
|
|
20,288 |
|
|
|
20,378 |
|
Interest (income) expense, net |
|
|
66 |
|
|
|
40 |
|
|
|
55 |
|
|
|
170 |
|
|
|
(36 |
) |
Income taxes (1) |
|
|
507 |
|
|
|
(843 |
) |
|
|
(217 |
) |
|
|
77 |
|
|
|
(8,193 |
) |
EBITDA |
|
$ |
8,847 |
|
|
$ |
188 |
|
|
$ |
4,720 |
|
|
$ |
18,172 |
|
|
$ |
(36,103 |
) |
Stock-based compensation expense (2) |
|
|
1,355 |
|
|
|
1,077 |
|
|
|
1,353 |
|
|
|
3,907 |
|
|
|
3,732 |
|
Employee retention credit (3) |
|
|
(2,992 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,992 |
) |
|
|
— |
|
Loss on disposal of assets |
|
|
(4 |
) |
|
|
38 |
|
|
|
99 |
|
|
|
113 |
|
|
|
1,451 |
|
Impairment loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
47,828 |
|
Severance expense |
|
|
41 |
|
|
|
3 |
|
|
|
— |
|
|
|
41 |
|
|
|
542 |
|
Credit losses |
|
|
30 |
|
|
|
1,246 |
|
|
|
316 |
|
|
|
630 |
|
|
|
2,698 |
|
Other write-offs (4) |
|
|
— |
|
|
|
586 |
|
|
|
— |
|
|
|
— |
|
|
|
589 |
|
Transaction costs (5) |
|
|
385 |
|
|
|
— |
|
|
|
10 |
|
|
|
409 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
7,662 |
|
|
$ |
3,138 |
|
|
$ |
6,498 |
|
|
$ |
20,280 |
|
|
$ |
20,737 |
|
1) |
Federal and state income taxes. |
||
2) |
Represents stock-based compensation expense related to restricted stock awards. |
||
3) |
Employee retention credit as part of Consolidated Appropriations Act of 2021, net of administrative fees. |
||
4) |
Write-off of certain prepaid and cancelled purchase orders in the three and nine months ended |
||
5) |
Costs related to the evaluation of potential acquisitions. |
SYSTEM GROSS MARGIN
We view System Gross Margin as an important indicator of performance. We define System Gross Margin as system rental and system services revenues, less the costs of system rental and system services, excluding depreciation and amortization, and evaluate our performance on that combined basis. System Gross Margin should not be considered in isolation or as substitutes for an analysis of our results of operation and financial condition as reported in accordance with accounting standards generally accepted in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|||||||||||
|
|
|
|
|
|
|
|||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2021 |
|
2020 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System rental |
|
$ |
16,091 |
|
$ |
9,197 |
|
$ |
14,323 |
|
$ |
44,063 |
|
$ |
40,720 |
System services |
|
|
32,990 |
|
|
10,855 |
|
|
20,616 |
|
|
68,317 |
|
|
35,231 |
Total system revenue |
|
$ |
49,081 |
|
$ |
20,052 |
|
$ |
34,939 |
|
$ |
112,380 |
|
$ |
75,951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of system rental, excluding depreciation and amortization |
|
$ |
2,536 |
|
$ |
1,181 |
|
$ |
1,556 |
|
$ |
5,704 |
|
$ |
4,018 |
Cost of system services, excluding depreciation and amortization |
|
|
35,617 |
|
|
13,126 |
|
|
23,282 |
|
|
76,151 |
|
|
43,269 |
Total system costs and expenses |
|
$ |
38,153 |
|
$ |
14,307 |
|
$ |
24,838 |
|
$ |
81,855 |
|
$ |
47,287 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System gross margin |
|
$ |
10,928 |
|
$ |
5,745 |
|
$ |
10,101 |
|
$ |
30,525 |
|
$ |
28,664 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fully utilized systems |
|
|
59 |
|
|
34 |
|
|
53 |
|
|
55 |
|
|
46 |
ADJUSTED PRO FORMA NET INCOME AND ADJUSTED PRO FORMA EARNINGS PER FULLY DILUTED SHARE
Adjusted pro forma net income represents net income attributable to Solaris assuming the full exchange of all outstanding membership interests in
When used in conjunction with GAAP financial measures, adjusted pro forma net income and adjusted pro forma earnings per fully diluted share are supplemental measures of operating performance that the Company believes are useful measures to evaluate performance period over period and relative to its competitors. By assuming the full exchange of all outstanding Solaris LLC Units, the Company believes these measures facilitate comparisons with other companies that have different organizational and tax structures, as well as comparisons period over period because it eliminates the effect of any changes in net income attributable to Solaris as a result of increases in its ownership of
Adjusted pro forma net income and adjusted pro forma earnings per fully diluted share are not necessarily comparable to similarly titled measures used by other companies due to different methods of calculation. Presentation of adjusted pro forma net income and adjusted pro forma earnings per fully diluted share should not be considered alternatives to net income and earnings per share, as determined under GAAP. While these measures are useful in evaluating the Company's performance, it does not account for the earnings attributable to the non-controlling interest holders and therefore does not provide a complete understanding of the net income attributable to Solaris. Adjusted pro forma net income and adjusted pro forma earnings per fully diluted share should be evaluated in conjunction with GAAP financial results. A reconciliation of adjusted pro forma net income to net income attributable to Solaris, the most directly comparable GAAP measure, and the computation of adjusted pro forma earnings per fully diluted share are set forth below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Three months ended |
|
Nine months ended |
||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2021 |
|
2020 |
||||||||||
Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income (loss) attributable to Solaris |
|
$ |
874 |
|
|
$ |
(3,283 |
) |
|
$ |
(1,211 |
) |
|
$ |
(1,506 |
) |
|
$ |
(27,905 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Reallocation of net income (loss) attributable to non-controlling interests from the assumed exchange of LLC Interests (1) |
|
|
558 |
|
|
|
(2,320 |
) |
|
|
(659 |
) |
|
|
(857 |
) |
|
|
(20,347 |
) |
Employee retention credit (2) |
|
|
(2,992 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,992 |
) |
|
|
— |
|
Loss on disposal of assets |
|
|
(4 |
) |
|
|
38 |
|
|
|
99 |
|
|
|
113 |
|
|
|
1,451 |
|
Credit losses |
|
|
30 |
|
|
|
1,246 |
|
|
|
316 |
|
|
|
630 |
|
|
|
2,698 |
|
Impairment loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
47,828 |
|
Severance expense |
|
|
41 |
|
|
|
3 |
|
|
|
— |
|
|
|
41 |
|
|
|
542 |
|
Other write-offs (3) |
|
|
— |
|
|
|
586 |
|
|
|
— |
|
|
|
— |
|
|
|
589 |
|
Transaction costs (4) |
|
|
385 |
|
|
|
— |
|
|
|
10 |
|
|
|
409 |
|
|
|
— |
|
Incremental income tax benefit (expense) |
|
|
515 |
|
|
|
(274 |
) |
|
|
47 |
|
|
|
573 |
|
|
|
(8,193 |
) |
Adjusted pro forma net income (loss) |
|
$ |
(593 |
) |
|
$ |
(4,004 |
) |
|
$ |
(1,398 |
) |
|
$ |
(3,588 |
) |
|
$ |
(3,337 |
) |
Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Weighted average shares of Class A common stock outstanding |
|
|
31,058 |
|
|
|
28,787 |
|
|
|
30,984 |
|
|
|
30,671 |
|
|
|
28,912 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Assumed exchange of Solaris LLC Units for shares of Class A common stock (1) |
|
|
13,819 |
|
|
|
15,803 |
|
|
|
14,701 |
|
|
|
14,119 |
|
|
|
15,860 |
|
Adjusted pro forma fully weighted average shares of Class A common stock outstanding - diluted |
|
|
44,877 |
|
|
|
44,590 |
|
|
|
45,685 |
|
|
|
44,790 |
|
|
|
44,772 |
|
Adjusted pro forma earnings per share - diluted |
|
$ |
(0.01 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.07 |
) |
(1) |
Assumes the exchange of all outstanding Solaris LLC Units for shares of Class A common stock at the beginning of the relevant reporting period, resulting in the elimination of the non-controlling interest and recognition of the net income attributable to non-controlling interests. |
||
(2) |
Employee retention credit as part of Consolidated Appropriations Act of 2021, net of administrative fees. |
||
(3) |
Write-off of certain prepaid and cancelled purchase orders in the three and nine months ended |
||
(4) |
Costs related to the evaluation of potential acquisitions. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20211101005971/en/
Senior Vice President, Finance and Investor Relations
(281) 501-3070
IR@solarisoilfield.com
Source:
FAQ
What were Solaris Oilfield Infrastructure's earnings for Q3 2021?
How did Solaris' revenue perform in Q3 2021?
What is the adjusted EBITDA for Solaris in Q3 2021?
Did Solaris pay a dividend in Q3 2021?
What is Solaris' liquidity status as of September 30, 2021?
