Expro Announces Fourth Quarter and Full Year 2024 Results
Fourth quarter revenue of
Fourth quarter Adjusted EBITDA1 of
Fourth quarter net income of
Board approved an extension of
Management provides 2025 revenue and Adjusted EBITDA margin outlook.
Fourth Quarter 2024 Financial Highlights
-
Revenue was
$437 million $423 million $14 million 3% , primarily driven by increased activity and revenue inEurope and Sub-Saharan Africa (ESSA) andMiddle East andNorth Africa (MENA). -
Adjusted EBITDA was
$100 million $15 million 18% , as compared to$85 million 23% and20% , respectively. -
Net income for the fourth quarter of 2024 was
$23 million $0.19 $16 million $0.14 $43 million $0.36 $28 million $0.23 -
Net cash provided by operating activities for the fourth quarter of 2024 was
$97 million $55 million
Full Year 2024 Financial Highlights
-
Revenue was
$1,713 million $200 million 13% , compared to$1,513 million North and Latin America (NLA), ESSA and MENA. Revenue for the year ended December 31, 2024 includes$88 million -
Adjusted EBITDA increased by
$99 million 40% , to$347 million $249 million 20% in 2024, up year-over-year from16% in 2023.
1. A non-GAAP measure.
Full Year 2024 Financial Highlights (continued)
-
Net income was
$52 million $0.45 $23 million $0.21 $111 million $ 0.96 $20 million $ 0.19 -
Net cash provided by operating activities for the year ended December 31, 2024 was
$169 million $138 million
Michael Jardon, Chief Executive Officer, noted “We are pleased to report solid fourth quarter and full-year financial results, reflecting the continued strength of our business and the resilience of our team. Fourth quarter Adjusted EBITDA and Adjusted EBITDA margin of
“We recently resolved outstanding variation orders related to our Congo production solutions project, allowing us to successfully close out the construction and commissioning phase of the project. Our customer also approved an adjustment to the contract rate for the multi-year operations and maintenance (O&M) phase of the project to incentivize higher through-put from the Expro-built onshore pre-treatment plant and our provision of additional services for the facility. Our customers continue to highlight their desire to optimize production from existing wells and assets and reduce their emissions, and the Congo project is an excellent example of how we enable our customers to achieve these objectives. I congratulate our team on developing and delivering a cost-competitive, differentiated solution for this important customer, and doing so within a very ambitious timeline. With 800 team members working onsite for over 22 months, we also achieved nearly 1.9 million man-hours without an HSE-related lost time incident. This is a significant milestone in which all my Expro colleagues can take pride.
“Expro continues to accelerate the development and commercialization of technologies to increase automation and drive demand for our services and solutions, which is reflected in fourth quarter contract wins totaling
“We expect to make demonstrable progress in 2025 toward our medium-term target of mid-20s Adjusted EBITDA margin and a ten percent free cash flow margin, despite near-term headwinds attributed to whitespace in deepwater activity and a full-year, flattish revenue outlook. In the evolving macro environment, we are currently focused on executing our “Drive25” operating efficiency campaign, which combined with a continued positive shift in activity mix, will support further margin expansion. Drive25 is focused on standardizing practices across geo-markets, product lines and job functions, resulting in improved profitability and better operating leverage. A positive shift in activity mix will be supported by a full-year contribution and pull-through revenue opportunities from the acquired Coretrax business as well as improved margins from the Congo production solutions project as we shift to the O&M phase.
“For 2025, we currently anticipate full-year revenues to be stable to up modestly year-on-year. Adjusted EBITDA margin is expected to improve over 100 bps year-on-year. Like prior years, first quarter revenue is expected to be down sequentially by approximately
Notable Awards and Achievements
In the fourth quarter, Expro signed a technology agreement with Petrobras for the development of a new non-intrusive flowmeter. This technology will provide flow rates and identify flow patterns, generating online and real-time data availability for control and monitoring of slug instabilities to increase efficiency and optimize production of wells. The key requirement in this technology development is the non-intrusive aspect of the clamp-on design, as well as the absence of any radioactive source.
In the NLA region, well construction market share in the Gulf of America remains robust having secured a three-rig, five-year contract for the development of a deepwater field. Our services and solutions will include TRS and cementing solutions, including our proprietary cure technologies.
Good business momentum continued in ESSA in the fourth quarter of 2024. In
In MENA, despite recently announced curtailment of offshore activities in the
Lastly, in APAC, Expro secured an approximate
Segment Results
Unless otherwise noted, the following discussion compares the quarterly results for the fourth quarter of 2024 to the results for the third quarter of 2024.
Revenue for NLA was approximately
Segment EBITDA for NLA was
Revenue for ESSA was
Segment EBITDA for ESSA was
Revenue for MENA was
Segment EBITDA for MENA was
Revenue for APAC was
Segment EBITDA for APAC was
Other Financial Information
The Company’s capital expenditures totaled
As of December 31, 2024, Expro’s consolidated cash and cash equivalents, including restricted cash, totaled
On December 12, 2024, the Company’s Board of Directors (the “Board”) approved an extension to its stock repurchase program, pursuant to which the Company is authorized to acquire up to
Expro’s provision for income taxes was
The financial measures provided that are not presented in accordance with GAAP are defined and reconciled to their most directly comparable GAAP measures. Please see “Use of Non-GAAP Financial Measures” and the reconciliations to the nearest comparable GAAP measures.
Additionally, downloadable financials are available on the Investor section of www.expro.com.
Conference Call
The Company will host a conference call to discuss fourth quarter 2024 results on Tuesday, February 25, 2025, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time).
Participants may also join the conference call by dialing:
US: +1 (833) 470-1428
International: +1 (404) 975-4839
Access ID: 257167
To listen via live webcast, please visit the Investor section of www.expro.com.
The fourth quarter 2024 Investor Presentation is available on the Investor section of www.expro.com.
An audio replay of the webcast will be available on the Investor section of the Company’s website approximately three hours after the conclusion of the call and will remain available for a period of two weeks.
To access the audio replay telephonically:
Dial-In: US +1 (866) 813-9403 or +1 (929) 458-6194
Access ID: 438374
Start Date: February 25, 2025, 1:00 p.m. CT
End Date: March 11, 2025, 10:59 p.m. CT
A transcript of the conference call will be posted to the Investor relations section of the Company’s website after the conclusion of the call.
ABOUT EXPRO
Working for clients across the entire well life cycle, Expro is a leading provider of energy services, offering cost-effective, innovative solutions and what the Company considers to be best-in-class safety and service quality. The Company’s extensive portfolio of capabilities spans well construction, well flow management, subsea well access, and well intervention and integrity.
With roots dating to 1938, Expro has approximately 8,500 employees and provides services and solutions to leading energy companies in both onshore and offshore environments in approximately 60 countries.
For more information, please visit: www.expro.com and connect with Expro on X @ExproGroup and LinkedIn @Expro.
Forward Looking Statements
This release contains 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. All statements, other than statements of historical facts, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this release include statements, estimates and projections regarding the Company’s future business strategy and prospects for growth, cash flows and liquidity, financial strategy, budget, projections, guidance, operating results, environmental, social and governance goals, targets and initiatives, estimates and projections regarding the benefits of the Coretrax acquisition, and the Company’s ability to achieve the anticipated synergies as a result of the Coretrax acquisition. These statements are based on certain assumptions made by the Company based on management’s experience, expectations and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Forward-looking statements are not guarantees of performance. Although the Company believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. Moreover, such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Such assumptions, risks and uncertainties include the amount, nature and timing of capital expenditures, the availability and terms of capital, the level of activity in the oil and gas industry, volatility of oil and gas prices, unique risks associated with offshore operations (including the ability to recover, and to the extent necessary, service and/or economically repair any equipment located on the seabed), political, economic and regulatory uncertainties in international operations, the ability to develop new technologies and products, the ability to protect intellectual property rights, the ability to employ and retain skilled and qualified workers, the level of competition in the Company’s industry, global or national health concerns, including health epidemics, the possibility of a swift and material decline in global crude oil demand and crude oil prices for an uncertain period of time, future actions of foreign oil producers such as
Such assumptions, risks and uncertainties also include the factors discussed or referenced in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 to be filed with the SEC, as well as other risks and uncertainties set forth from time to time in the reports the Company files with the SEC. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events, historical practice or otherwise, except as required by applicable law, and we caution you not to rely on them unduly.
Use of Non-GAAP Financial Measures
This press release and the accompanying schedules include the non-GAAP financial measures of Adjusted EBITDA, Adjusted EBITDA margin, contribution, contribution margin, support costs, adjusted net income (loss), and adjusted net income (loss) per diluted share, which may be used periodically by management when discussing financial results with investors and analysts. The accompanying schedules of this press release provide a reconciliation of these non-GAAP financial measures to their most directly comparable financial measure calculated and presented in accordance with GAAP. These non-GAAP financial measures are presented because management believes these metrics provide additional information relative to the performance of the business. These metrics are commonly employed by financial analysts and investors to evaluate the operating and financial performance of Expro from period to period and to compare such performance with the performance of other publicly traded companies within the industry. You should not consider Adjusted EBITDA, Adjusted EBITDA margin, contribution, contribution margin, support costs, adjusted net income (loss) and adjusted net income (loss) per diluted share in isolation or as a substitute for analysis of Expro’s results as reported under GAAP. Because Adjusted EBITDA, Adjusted EBITDA margin, contribution, contribution margin, support costs, adjusted net income (loss) and adjusted net income (loss) per diluted share may be defined differently by other companies in the industry, the presentation of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
Expro defines Adjusted EBITDA as net income (loss) adjusted for (a) income tax expense, (b) depreciation and amortization expense, (c) severance and other expense, (d) merger and integration expense, (e) gain on disposal of assets, (f) other (income) expense, net, (g) stock-based compensation expense, (h) foreign exchange (gains) losses and (i) interest and finance (income) expense, net. Adjusted EBITDA margin reflects Adjusted EBITDA expressed as a percentage of total revenue.
Contribution is defined as total revenue less cost of revenue excluding depreciation and amortization expense, adjusted for indirect support costs and stock-based compensation expense included in cost of revenue. Contribution margin is defined as contribution divided by total revenue, expressed as a percentage. Support costs is defined as indirect costs attributable to supporting the activities of the operating segments, research and engineering expenses and product line management costs included in cost of revenue, excluding depreciation and amortization expense, and general and administrative expense, excluding depreciation and amortization expense, which represent costs of running the corporate head office and other central functions, including logistics, sales and marketing and health and safety, and does not include foreign exchange gains or losses and other non-routine expenses.
The Company defines adjusted net income (loss) as net income (loss) before merger and integration expense, severance and other expense, stock-based compensation expense, and gain on disposal of assets, adjusted for corresponding tax benefits of these items. The Company defines adjusted net income (loss) per diluted share as net income (loss) per diluted share before merger and integration expense, severance and other expense, stock-based compensation expense, and gain on disposal of assets, adjusted for corresponding tax benefits of these items, divided by diluted weighted average common shares.
Please see the accompanying financial tables for a reconciliation of these non-GAAP measures to their most directly comparable GAAP measures.
EXPRO GROUP HOLDINGS N.V. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) |
||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||
|
|
December
|
|
|
September
|
|
|
December
|
|
|
December
|
|
|
December
|
|
|||||
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||
Total revenue |
|
$ |
436,843 |
|
|
$ |
422,828 |
|
|
$ |
406,750 |
|
|
$ |
1,712,802 |
|
|
$ |
1,512,764 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue, excluding depreciation and amortization |
|
|
(327,123 |
) |
|
|
(331,235 |
) |
|
|
(316,875 |
) |
|
|
(1,333,365 |
) |
|
|
(1,241,295 |
) |
General and administrative expense, excluding depreciation and amortization |
|
|
(22,516 |
) |
|
|
(20,467 |
) |
|
|
(19,346 |
) |
|
|
(88,421 |
) |
|
|
(64,254 |
) |
Depreciation and amortization expense |
|
|
(42,284 |
) |
|
|
(40,391 |
) |
|
|
(62,874 |
) |
|
|
(163,468 |
) |
|
|
(172,260 |
) |
Merger and integration expense |
|
|
(3,947 |
) |
|
|
(1,437 |
) |
|
|
(5,432 |
) |
|
|
(16,334 |
) |
|
|
(9,764 |
) |
Severance and other expense |
|
|
(9,041 |
) |
|
|
(3,181 |
) |
|
|
(8,901 |
) |
|
|
(17,048 |
) |
|
|
(14,388 |
) |
Total operating cost and expenses |
|
|
(404,911 |
) |
|
|
(396,711 |
) |
|
|
(413,428 |
) |
|
|
(1,618,636 |
) |
|
|
(1,501,961 |
) |
Operating income (loss) |
|
|
31,932 |
|
|
|
26,117 |
|
|
|
(6,678 |
) |
|
|
94,166 |
|
|
|
10,803 |
|
Other (expense) income, net |
|
|
(1,186 |
) |
|
|
262 |
|
|
|
4,774 |
|
|
|
(105 |
) |
|
|
1,234 |
|
Interest and finance expense, net |
|
|
(1,804 |
) |
|
|
(3,895 |
) |
|
|
(2,255 |
) |
|
|
(12,517 |
) |
|
|
(3,943 |
) |
Income (loss) before taxes and equity in income of joint ventures |
|
|
28,942 |
|
|
|
22,484 |
|
|
|
(4,159 |
) |
|
|
81,544 |
|
|
|
8,094 |
|
Equity in income of joint ventures |
|
|
3,467 |
|
|
|
4,241 |
|
|
|
5,117 |
|
|
|
16,422 |
|
|
|
12,853 |
|
Income before income taxes |
|
|
32,409 |
|
|
|
26,725 |
|
|
|
958 |
|
|
|
97,966 |
|
|
|
20,947 |
|
Income tax expense |
|
|
(9,375 |
) |
|
|
(10,450 |
) |
|
|
(13,376 |
) |
|
|
(46,048 |
) |
|
|
(44,307 |
) |
Net income (loss) |
|
$ |
23,034 |
|
|
$ |
16,275 |
|
|
$ |
(12,418 |
) |
|
$ |
51,918 |
|
|
$ |
(23,360 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.20 |
|
|
$ |
0.14 |
|
|
$ |
(0.11 |
) |
|
$ |
0.45 |
|
|
$ |
(0.21 |
) |
Diluted |
|
$ |
0.19 |
|
|
$ |
0.14 |
|
|
$ |
(0.11 |
) |
|
$ |
0.45 |
|
|
$ |
(0.21 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
117,277,836 |
|
|
|
117,467,994 |
|
|
|
110,325,863 |
|
|
|
114,762,477 |
|
|
|
109,161,453 |
|
Diluted |
|
|
118,129,232 |
|
|
|
118,293,677 |
|
|
|
110,325,863 |
|
|
|
115,829,638 |
|
|
|
109,161,453 |
|
EXPRO GROUP HOLDINGS N.V. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) |
||||||||
|
|
December 31, |
|
|
December 31, |
|
||
|
|
2024 |
|
|
2023 |
|
||
Assets |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
183,036 |
|
|
$ |
151,741 |
|
Restricted cash |
|
|
1,627 |
|
|
|
1,425 |
|
Accounts receivable, net |
|
|
517,570 |
|
|
|
469,119 |
|
Inventories |
|
|
159,040 |
|
|
|
143,325 |
|
Income tax receivables |
|
|
28,641 |
|
|
|
27,581 |
|
Other current assets |
|
|
74,132 |
|
|
|
58,409 |
|
Total current assets |
|
|
964,046 |
|
|
|
851,600 |
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
563,697 |
|
|
|
513,222 |
|
Investments in joint ventures |
|
|
73,012 |
|
|
|
66,402 |
|
Intangible assets, net |
|
|
298,856 |
|
|
|
239,716 |
|
Goodwill |
|
|
348,918 |
|
|
|
247,687 |
|
Operating lease right-of-use assets |
|
|
66,640 |
|
|
|
72,310 |
|
Non-current accounts receivable, net |
|
|
7,432 |
|
|
|
9,768 |
|
Other non-current assets |
|
|
10,940 |
|
|
|
12,302 |
|
Total assets |
|
$ |
2,333,541 |
|
|
$ |
2,013,007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
340,298 |
|
|
$ |
326,125 |
|
Income tax liabilities |
|
|
52,436 |
|
|
|
45,084 |
|
Finance lease liabilities |
|
|
2,234 |
|
|
|
1,967 |
|
Operating lease liabilities |
|
|
17,253 |
|
|
|
17,531 |
|
Other current liabilities |
|
|
72,209 |
|
|
|
98,144 |
|
Total current liabilities |
|
|
484,430 |
|
|
|
488,851 |
|
|
|
|
|
|
|
|
|
|
Long-term borrowings |
|
$ |
121,065 |
|
|
|
20,000 |
|
Deferred tax liabilities, net |
|
|
44,310 |
|
|
|
22,706 |
|
Post-retirement benefits |
|
|
10,430 |
|
|
|
10,445 |
|
Finance lease liabilities |
|
|
14,006 |
|
|
|
16,410 |
|
Operating lease liabilities |
|
|
48,488 |
|
|
|
54,976 |
|
Uncertain tax positions |
|
|
74,526 |
|
|
|
59,544 |
|
Other non-current liabilities |
|
|
44,802 |
|
|
|
44,202 |
|
Total liabilities |
|
|
842,057 |
|
|
|
717,134 |
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Common stock |
|
|
8,488 |
|
|
|
8,062 |
|
Treasury Stock |
|
|
(83,420 |
) |
|
|
(64,697 |
) |
Additional paid-in capital |
|
|
2,079,161 |
|
|
|
1,909,323 |
|
Accumulated other comprehensive loss |
|
|
14,470 |
|
|
|
22,318 |
|
Accumulated deficit |
|
|
(527,215 |
) |
|
|
(579,133 |
) |
Total stockholders’ equity |
|
|
1,491,484 |
|
|
|
1,295,873 |
|
Total liabilities and stockholders’ equity |
|
$ |
2,333,541 |
|
|
$ |
2,013,007 |
|
EXPRO GROUP HOLDINGS N.V. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
||||||||
|
|
Year Ended |
|
|||||
|
|
December 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
51,918 |
|
|
$ |
(23,360 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization expense |
|
|
163,468 |
|
|
|
172,260 |
|
Equity in income of joint ventures |
|
|
(16,422 |
) |
|
|
(12,853 |
) |
Stock-based compensation expense |
|
|
26,352 |
|
|
|
19,574 |
|
Elimination of unrealized profit on sales to joint ventures |
|
|
4 |
|
|
|
4,159 |
|
Deferred taxes |
|
|
(5,765 |
) |
|
|
(10,478 |
) |
Unrealized foreign exchange losses |
|
|
5,861 |
|
|
|
5,658 |
|
Changes in fair value of contingent consideration |
|
|
(6,079 |
) |
|
|
576 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
(17,301 |
) |
|
|
(34,895 |
) |
Inventories |
|
|
4,931 |
|
|
|
10,575 |
|
Other assets |
|
|
(12,388 |
) |
|
|
(16,745 |
) |
Accounts payable and accrued liabilities |
|
|
(11,076 |
) |
|
|
34,600 |
|
Other liabilities |
|
|
(19,813 |
) |
|
|
(18,275 |
) |
Income taxes, net |
|
|
11,905 |
|
|
|
8,798 |
|
Dividends received from joint ventures |
|
|
8,231 |
|
|
|
8,329 |
|
Other |
|
|
(14,347 |
) |
|
|
(9,614 |
) |
Net cash provided by operating activities |
|
|
169,479 |
|
|
|
138,309 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(143,576 |
) |
|
|
(122,110 |
) |
Payment for acquired businesses, net of cash acquired |
|
|
(31,967 |
) |
|
|
(28,707 |
) |
Proceeds from settlement of contingent consideration |
|
|
7,500 |
|
|
|
- |
|
Proceeds from disposal of assets |
|
|
2,900 |
|
|
|
2,013 |
|
Proceeds from sale / maturity of investments |
|
|
- |
|
|
|
572 |
|
Net cash used in investing activities |
|
|
(165,143 |
) |
|
|
(148,232 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Release of (cash pledged for) collateral deposits |
|
|
1,170 |
|
|
|
(217 |
) |
Payment of contingent consideration |
|
|
(13,873 |
) |
|
|
- |
|
Proceeds from long-term borrowings |
|
|
117,269 |
|
|
|
50,000 |
|
Repayments of long-term borrowings |
|
|
(44,351 |
) |
|
|
(65,096 |
) |
Repurchase of common stock |
|
|
(14,155 |
) |
|
|
(20,024 |
) |
Payment of withholding taxes on stock-based compensation plans |
|
|
(3,431 |
) |
|
|
(2,559 |
) |
Repayment of financed insurance premium |
|
|
(10,920 |
) |
|
|
(9,317 |
) |
Repayments of finance leases |
|
|
(2,137 |
) |
|
|
(2,126 |
) |
Net cash provided by (used in) financing activities |
|
|
29,572 |
|
|
|
(49,339 |
) |
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
(2,411 |
) |
|
|
(6,032 |
) |
Net increase (decrease) to cash and cash equivalents and restricted cash |
|
|
31,497 |
|
|
|
(65,294 |
) |
Cash and cash equivalents and restricted cash at beginning of year |
|
|
153,166 |
|
|
|
218,460 |
|
Cash and cash equivalents and restricted cash at end of year |
|
$ |
184,663 |
|
|
$ |
153,166 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
|
|
Cash paid for income taxes net of refunds |
|
$ |
(39,250 |
) |
|
$ |
(44,268 |
) |
Cash paid for interest, net |
|
|
(11,871 |
) |
|
|
(2,177 |
) |
Change in accounts payable and accrued expenses related to capital expenditures |
|
|
(2,311 |
) |
|
|
(7,926 |
) |
EXPRO GROUP HOLDINGS N.V. SELECTED OPERATING SEGMENT DATA (In thousands) (Unaudited)
Segment Revenue and Segment Revenue as Percentage of Total Revenue: |
||||||||||||||||||||||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||||||||||||||||||||||
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|||||||||||||||||||||||||
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||||||||||||||||||||||
NLA |
|
$ |
139,272 |
|
|
|
32 |
% |
|
$ |
139,397 |
|
|
|
33 |
% |
|
$ |
145,490 |
|
|
|
36 |
% |
|
$ |
566,048 |
|
|
|
33 |
% |
|
$ |
511,800 |
|
|
|
34 |
% |
ESSA |
|
|
142,788 |
|
|
|
33 |
% |
|
|
131,475 |
|
|
|
31 |
% |
|
|
133,846 |
|
|
|
33 |
% |
|
|
564,440 |
|
|
|
33 |
% |
|
|
520,951 |
|
|
|
34 |
% |
MENA |
|
|
92,557 |
|
|
|
21 |
% |
|
|
86,736 |
|
|
|
21 |
% |
|
|
65,363 |
|
|
|
16 |
% |
|
|
332,216 |
|
|
|
19 |
% |
|
|
233,528 |
|
|
|
15 |
% |
APAC |
|
|
62,226 |
|
|
|
14 |
% |
|
|
65,220 |
|
|
|
15 |
% |
|
|
62,051 |
|
|
|
15 |
% |
|
|
250,098 |
|
|
|
15 |
% |
|
|
246,485 |
|
|
|
16 |
% |
Total |
|
$ |
436,843 |
|
|
|
100 |
% |
|
$ |
422,828 |
|
|
|
100 |
% |
|
$ |
406,750 |
|
|
|
100 |
% |
|
$ |
1,712,802 |
|
|
|
100 |
% |
|
$ |
1,512,764 |
|
|
|
100 |
% |
Segment EBITDA(1), Segment EBITDA Margin(2), Adjusted EBITDA and Adjusted EBITDA Margin(3): |
||||||||||||||||||||||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||||||||||||||||||||||
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|||||||||||||||||||||||||
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||||||||||||||||||||||
NLA |
|
$ |
30,062 |
|
|
|
22 |
% |
|
$ |
33,064 |
|
|
|
24 |
% |
|
$ |
44,325 |
|
|
|
30 |
% |
|
$ |
141,977 |
|
|
|
25 |
% |
|
$ |
132,869 |
|
|
|
26 |
% |
ESSA |
|
|
53,002 |
|
|
|
37 |
% |
|
|
32,175 |
|
|
|
24 |
% |
|
|
40,990 |
|
|
|
31 |
% |
|
|
145,375 |
|
|
|
26 |
% |
|
|
136,007 |
|
|
|
26 |
% |
MENA |
|
|
32,591 |
|
|
|
35 |
% |
|
|
30,032 |
|
|
|
35 |
% |
|
|
21,271 |
|
|
|
33 |
% |
|
|
115,772 |
|
|
|
35 |
% |
|
|
71,201 |
|
|
|
30 |
% |
APAC |
|
|
15,453 |
|
|
|
25 |
% |
|
|
16,193 |
|
|
|
25 |
% |
|
|
5,337 |
|
|
|
9 |
% |
|
|
57,680 |
|
|
|
23 |
% |
|
|
1,805 |
|
|
|
1 |
% |
Total Segment EBITDA |
|
|
131,108 |
|
|
|
|
|
|
|
111,464 |
|
|
|
|
|
|
|
111,923 |
|
|
|
|
|
|
|
460,804 |
|
|
|
|
|
|
|
341,882 |
|
|
|
|
|
Corporate costs (4) |
|
|
(34,218 |
) |
|
|
|
|
|
|
(30,669 |
) |
|
|
|
|
|
|
(31,894 |
) |
|
|
|
|
|
|
(129,823 |
) |
|
|
|
|
|
|
(105,855 |
) |
|
|
|
|
Equity in income of joint ventures |
|
|
3,467 |
|
|
|
|
|
|
|
4,241 |
|
|
|
|
|
|
|
5,117 |
|
|
|
|
|
|
|
16,422 |
|
|
|
|
|
|
|
12,853 |
|
|
|
|
|
Adjusted EBITDA |
|
$ |
100,357 |
|
|
|
23 |
% |
|
$ |
85,036 |
|
|
|
20 |
% |
|
$ |
85,146 |
|
|
|
21 |
% |
|
$ |
347,403 |
|
|
|
20 |
% |
|
$ |
248,880 |
|
|
|
16 |
% |
(1) |
Expro evaluates its business segment operating performance using Segment Revenue, Segment EBITDA and Segment EBITDA Margin. Expro’s management believes Segment EBITDA and Segment EBITDA Margin are useful operating performance measures as they exclude transactions not related to its core operating activities, corporate costs and certain non-cash items and allows Expro to meaningfully analyze the trends and performance of its core operations by segment as well as to make decisions regarding the allocation of resources to segments. |
|
|
(2) |
Expro defines Segment EBITDA Margin as Segment EBITDA divided by Segment Revenue, expressed as a percentage. |
|
|
(3) |
Expro defines Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue, expressed as a percentage. |
|
|
(4) |
Corporate costs include the costs of running our corporate head office and other central functions that support the operating segments but are not attributable to a particular operating segment, including central product line management, research, engineering and development, logistics, sales and marketing, and health and safety. |
EXPRO GROUP HOLDINGS N.V. REVENUE BY AREAS OF CAPABILITIES AND SELECTED CASH FLOW INFORMATION (In thousands) (Unaudited)
Revenue by areas of capabilities: |
||||||||||||||||||||||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||||||||||||||||||||||
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|||||||||||||||||||||||||
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||||||||||||||||||||||
Well construction |
|
$ |
145,230 |
|
|
|
33 |
% |
|
$ |
159,268 |
|
|
|
38 |
% |
|
$ |
145,279 |
|
|
|
36 |
% |
|
$ |
573,005 |
|
|
|
33 |
% |
|
$ |
533,556 |
|
|
|
35 |
% |
Well management (1) |
|
|
291,613 |
|
|
|
67 |
% |
|
|
263,560 |
|
|
|
62 |
% |
|
|
261,471 |
|
|
|
64 |
% |
|
|
1,139,797 |
|
|
|
67 |
% |
|
|
979,208 |
|
|
|
65 |
% |
Total |
|
$ |
436,843 |
|
|
|
100 |
% |
|
$ |
422,828 |
|
|
|
100 |
% |
|
$ |
406,750 |
|
|
|
100 |
% |
|
$ |
1,712,802 |
|
|
|
100 |
% |
|
$ |
1,512,764 |
|
|
|
100 |
% |
(1) |
Well management consists of well flow management, subsea well access, and well intervention and integrity. |
Supplementary information on specific amounts included in cash provided by operating activities: |
||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||
|
|
December
|
|
|
September
|
|
|
December
|
|
|
December
|
|
|
December
|
|
|||||
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||
Net cash provided by operating activities |
|
$ |
97,401 |
|
|
$ |
55,313 |
|
|
$ |
32,781 |
|
|
$ |
169,479 |
|
|
$ |
138,309 |
|
Cash paid for interest, net |
|
|
3,801 |
|
|
|
2,441 |
|
|
|
721 |
|
|
|
11,871 |
|
|
|
2,177 |
|
Cash paid for merger and integration expense |
|
|
2,751 |
|
|
|
2,212 |
|
|
|
4,389 |
|
|
|
16,955 |
|
|
|
17,403 |
|
Cash paid for severance and other expense |
|
|
11,325 |
|
|
|
5,490 |
|
|
|
5,525 |
|
|
|
26,297 |
|
|
|
12,304 |
|
EXPRO GROUP HOLDINGS N.V. GROSS PROFIT, GROSS MARGIN, CONTRIBUTION, CONTRIBUTION MARGIN AND SUPPORT COSTS (In thousands) (Unaudited)
Gross Profit, Contribution(1), Gross Margin and Contribution Margin(2): |
||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||
|
|
December
|
|
|
September
|
|
|
December
|
|
|
December
|
|
|
December
|
|
|||||
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||
Total revenue |
|
$ |
436,843 |
|
|
$ |
422,828 |
|
|
$ |
406,750 |
|
|
$ |
1,712,802 |
|
|
$ |
1,512,764 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Cost of revenue, excluding depreciation and amortization |
|
|
(327,123 |
) |
|
|
(331,235 |
) |
|
|
(316,875 |
) |
|
|
(1,333,365 |
) |
|
|
(1,241,295 |
) |
Less: Depreciation and amortization related to cost of revenue |
|
|
(42,205 |
) |
|
|
(40,315 |
) |
|
|
(62,874 |
) |
|
|
(163,161 |
) |
|
|
(171,963 |
) |
Gross profit |
|
|
67,515 |
|
|
|
51,278 |
|
|
|
27,001 |
|
|
|
216,276 |
|
|
|
99,506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Indirect costs (included in cost of revenue) |
|
|
72,791 |
|
|
|
71,875 |
|
|
|
67,175 |
|
|
|
282,745 |
|
|
|
251,373 |
|
Add: Stock-based compensation expenses |
|
|
2,360 |
|
|
|
2,266 |
|
|
|
1,755 |
|
|
|
9,057 |
|
|
|
6,967 |
|
Add: Depreciation and amortization related to cost of revenue |
|
|
42,205 |
|
|
|
40,315 |
|
|
|
62,874 |
|
|
|
163,161 |
|
|
|
171,963 |
|
Contribution |
|
$ |
184,871 |
|
|
$ |
165,734 |
|
|
$ |
158,805 |
|
|
$ |
671,239 |
|
|
$ |
529,809 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin |
|
|
15 |
% |
|
|
12 |
% |
|
|
7 |
% |
|
|
13 |
% |
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution margin |
|
|
42 |
% |
|
|
39 |
% |
|
|
39 |
% |
|
|
39 |
% |
|
|
35 |
% |
Support Costs(4): |
||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||
|
|
December
|
|
|
September
|
|
|
December
|
|
|
December
|
|
|
December
|
|
|||||
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||
Cost of revenue (excluding depreciation and amortization) |
|
$ |
327,123 |
|
|
$ |
331,235 |
|
|
$ |
316,875 |
|
|
$ |
1,333,365 |
|
|
$ |
1,241,295 |
|
Direct costs (excluding depreciation and amortization) |
|
|
(251,972 |
) |
|
|
(257,094 |
) |
|
|
(247,945 |
) |
|
|
(1,041,563 |
) |
|
|
(982,955 |
) |
Stock-based compensation expense |
|
|
(2,360 |
) |
|
|
(2,266 |
) |
|
|
(1,755 |
) |
|
|
(9,057 |
) |
|
|
(6,967 |
) |
Indirect costs (included in cost of revenue) |
|
|
72,791 |
|
|
|
71,875 |
|
|
|
67,175 |
|
|
|
282,745 |
|
|
|
251,373 |
|
General and administrative, (excluding depreciation and amortization expense, foreign exchange, and other non-routine costs) |
|
|
15,514 |
|
|
|
13,123 |
|
|
|
11,782 |
|
|
|
57,717 |
|
|
|
42,531 |
|
Total support costs |
|
$ |
88,305 |
|
|
$ |
84,998 |
|
|
$ |
78,957 |
|
|
$ |
340,462 |
|
|
$ |
293,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total support costs as a percentage of revenue |
|
|
20 |
% |
|
|
20 |
% |
|
|
19 |
% |
|
|
20 |
% |
|
|
19 |
% |
(1) |
Expro defines Contribution as Total Revenue less Cost of Revenue, excluding depreciation and amortization expense, adjusted for indirect support costs and stock-based compensation expense included in Cost of Revenue. |
|
|
(2) |
Contribution margin is defined as Contribution as a percentage of Revenue. |
|
|
(3) |
Direct costs include personnel costs, sub-contractor costs, equipment costs, repairs and maintenance, facilities, and other costs directly incurred to generate revenue. |
|
|
(4) |
Support costs includes indirect costs to support the activities of the operating segments, research, engineering and development expenses and product line management costs included in Cost of revenue, and General and administrative expenses such as the costs of running our corporate head office and other central functions, including, logistics, sales and marketing and health and safety and does not include foreign exchange gains or losses and other non-routine expenses. |
EXPRO GROUP HOLDINGS N.V. NON-GAAP FINANCIAL MEASURES AND RECONCILIATION (In thousands) (Unaudited)
Adjusted EBITDA Reconciliation and Adjusted EBITDA Margin: |
||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||
|
|
December
|
|
|
September
|
|
|
December
|
|
|
December
|
|
|
December
|
|
|||||
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||
Total revenue |
|
$ |
436,843 |
|
|
$ |
422,828 |
|
|
$ |
406,750 |
|
|
$ |
1,712,802 |
|
|
$ |
1,512,764 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
23,034 |
|
|
$ |
16,275 |
|
|
$ |
(12,418 |
) |
|
$ |
51,918 |
|
|
$ |
(23,360 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
9,375 |
|
|
|
10,450 |
|
|
|
13,376 |
|
|
|
46,048 |
|
|
|
44,307 |
|
Depreciation and amortization expense |
|
|
42,284 |
|
|
|
40,391 |
|
|
|
62,874 |
|
|
|
163,468 |
|
|
|
172,260 |
|
Severance and other expense |
|
|
9,041 |
|
|
|
3,181 |
|
|
|
8,901 |
|
|
|
17,048 |
|
|
|
14,388 |
|
Merger and integration expense |
|
|
3,947 |
|
|
|
1,437 |
|
|
|
5,432 |
|
|
|
16,334 |
|
|
|
9,764 |
|
Other expense (income), net |
|
|
1,186 |
|
|
|
(262 |
) |
|
|
(4,774 |
) |
|
|
105 |
|
|
|
(1,234 |
) |
Stock-based compensation expense |
|
|
7,101 |
|
|
|
6,831 |
|
|
|
4,892 |
|
|
|
26,352 |
|
|
|
19,574 |
|
Foreign exchange loss |
|
|
2,585 |
|
|
|
2,838 |
|
|
|
4,608 |
|
|
|
13,613 |
|
|
|
9,238 |
|
Interest and finance expense, net |
|
|
1,804 |
|
|
|
3,895 |
|
|
|
2,255 |
|
|
|
12,517 |
|
|
|
3,943 |
|
Adjusted EBITDA |
|
$ |
100,357 |
|
|
$ |
85,036 |
|
|
$ |
85,146 |
|
|
$ |
347,403 |
|
|
$ |
248,880 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) margin |
|
|
5 |
% |
|
|
4 |
% |
|
|
(3 |
)% |
|
|
3 |
% |
|
|
(2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin |
|
|
23 |
% |
|
|
20 |
% |
|
|
21 |
% |
|
|
20 |
% |
|
|
16 |
% |
EXPRO GROUP HOLDINGS N.V. NON-GAAP FINANCIAL MEASURES AND RECONCILIATION (In thousands, except per share amounts) (Unaudited)
Reconciliation of Adjusted Net Income: |
||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||
|
|
December
|
|
|
September
|
|
|
December
|
|
|
December
|
|
|
December
|
|
|||||
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||
Net income (loss) |
|
$ |
23,034 |
|
|
$ |
16,275 |
|
|
$ |
(12,418 |
) |
|
$ |
51,918 |
|
|
$ |
(23,360 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger and integration expense |
|
|
3,947 |
|
|
|
1,437 |
|
|
|
5,432 |
|
|
|
16,334 |
|
|
|
9,764 |
|
Severance and other expense |
|
|
9,041 |
|
|
|
3,181 |
|
|
|
8,901 |
|
|
|
17,048 |
|
|
|
14,388 |
|
Stock-based compensation expense |
|
|
7,101 |
|
|
|
6,831 |
|
|
|
4,892 |
|
|
|
26,352 |
|
|
|
19,574 |
|
Total adjustments, before taxes |
|
|
20,089 |
|
|
|
11,449 |
|
|
|
19,225 |
|
|
|
59,734 |
|
|
|
43,726 |
|
Tax benefit |
|
|
(358 |
) |
|
|
(27 |
) |
|
|
- |
|
|
|
(469 |
) |
|
|
(43 |
) |
Total adjustments, net of taxes |
|
|
19,731 |
|
|
|
11,422 |
|
|
|
19,225 |
|
|
|
59,265 |
|
|
|
43,683 |
|
Adjusted net income |
|
$ |
42,765 |
|
|
$ |
27,697 |
|
|
$ |
6,807 |
|
|
$ |
111,183 |
|
|
$ |
20,323 |
|
Reconciliation of Adjusted Net Income per Diluted Share: |
||||||||||||||||||||
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||||||
|
|
December
|
|
|
September
|
|
|
December
|
|
|
December
|
|
|
December
|
|
|||||
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|||||
Net income (loss) |
|
$ |
0.19 |
|
|
$ |
0.14 |
|
|
$ |
(0.11 |
) |
|
$ |
0.45 |
|
|
$ |
(0.21 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger and integration expense |
|
|
0.03 |
|
|
|
0.01 |
|
|
|
0.05 |
|
|
|
0.14 |
|
|
|
0.09 |
|
Severance and other expense |
|
|
0.08 |
|
|
|
0.03 |
|
|
|
0.08 |
|
|
|
0.15 |
|
|
|
0.13 |
|
Stock-based compensation expense |
|
|
0.06 |
|
|
|
0.06 |
|
|
|
0.04 |
|
|
|
0.23 |
|
|
|
0.18 |
|
Total adjustments, before taxes |
|
|
0.17 |
|
|
|
0.10 |
|
|
|
0.17 |
|
|
|
0.52 |
|
|
|
0.40 |
|
Tax benefit |
|
|
(0.00 |
) |
|
|
(0.00 |
) |
|
|
- |
|
|
|
(0.00 |
) |
|
|
(0.00 |
) |
Total adjustments, net of taxes |
|
|
0.17 |
|
|
|
0.10 |
|
|
|
0.17 |
|
|
|
0.51 |
|
|
|
0.40 |
|
Adjusted net income |
|
$ |
0.36 |
|
|
$ |
0.23 |
|
|
$ |
0.06 |
|
|
$ |
0.96 |
|
|
$ |
0.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported diluted weighted average common shares outstanding |
|
|
118,129,232 |
|
|
|
118,293,677 |
|
|
|
110,325,863 |
|
|
|
115,829,638 |
|
|
|
109,161,453 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250225869446/en/
Chad Stephenson - Director Investor Relations
+1 (713) 463-9776
InvestorRelations@expro.com
Source: Expro
