Expro Group Holdings N.V. Announces First Quarter 2022 Results
Expro Group Holdings N.V. (NYSE: XPRO) reported a 5% revenue decrease to $280 million in Q1 2022, impacted by lower activity in ESSA and APAC segments. However, the company achieved a significant reduction in net loss to $11 million from $91 million in the previous quarter. Adjusted net income improved to $1 million from a loss. EBITDA decreased 27% to $37 million, reflecting seasonal activity declines. Notably, the company reported growth in NLA and MENA segments and strategically enhanced its technology portfolio with the acquisition of SolaSense.
- Achieved lower net loss of $11 million in Q1 2022 compared to $91 million in Q4 2021.
- Increased revenue in North and Latin America by $4 million in Q1 2022.
- Expansion of technology portfolio with SolaSense acquisition.
- Notable growth in geothermal well contracts boosting market position.
- Q1 2022 revenue decreased 5% from Q4 2021.
- Adjusted EBITDA fell 27% to $37 million due to seasonal declines and project start-up delays.
- Cash used in operating activities was $(14) million, compared to $16 million generated in the prior quarter.
Delivered solid performance in the first quarter as scale, broad portfolio, global operating footprint, through-cycle capabilities and strong financial profile enabled year-over-year growth
First Quarter 2022 Highlights
-
Revenue was
$280 million $296 million $16 million 5% driven by lower activity across theEurope and SubSahara Africa (ESSA) andAsia Pacific (APAC) segments, partially offset by higher activities in theNorth and Latin America (NLA) andMiddle East andNorth Africa (MENA) segments. -
Net loss for the first quarter of 2022 was
$11 million $0.10 $91 million $0.84 $1 million $0.01 $4 million $0.03 -
Adjusted EBITDA (a non-GAAP measure) was
$37 million $14 million 27% , driven by a combination of seasonally lower activity, mobilization costs incurred, and project start-up delays in regards to, the expansion of our subsea services offering during the current quarter, partially offset by lower corporate costs. Adjusted EBITDA margin for the first quarter of 2022 and fourth quarter of 2021 was13% and17% , respectively. -
Net cash used in operating activities for the first quarter of 2022 was
$(14) million $16 million $(1) million $41 million
“Despite a dynamic operating environment, Expro executed on a number of corporate priorities during the first few months of 2022. This is testament to our team’s expertise and resilience, combined with our broad portfolio of technology solutions and ability to be flexible in adapting to our customers’ evolving needs.
“We achieved growth across
“Expro continues to support our customers’ energy transition goals through expanding our portfolio of carbon reduction solutions. In particular, we are seeing increasing potential in the geothermal market and have recently been awarded a geothermal well contracts in ESSA and APAC, thereby strengthening our position as an integrated services provider. This is a growing and increasingly important sector and key element of the energy services industry's journey toward a lower carbon future.
“Looking forward, we continue to see strengthening signals of a multi-year recovery as our customers seek to balance their energy security and sustainability priorities, and we expect demand for our services and solutions to increase throughout 2022 and beyond. In particular, operators are increasingly looking at short-cycle projects to boost production from existing assets and longer-cycle, new field development projects in order to increase production capacity and thereby improve the diversity and reliability of energy supply. Expro is uniquely positioned to serve our customers in the current market through our combined technology and know-how while prioritizing safety and service quality, enabling us to deliver maximum value to our customers, shareholders and other stakeholders.”
Notable Awards and Achievements
Expro recently published its inaugural Environmental, Social and Governance (“ESG”) report which provides transparency on the Company's performance and establishes Expro's near- and long-term ESG priorities. The 2021 ESG report outlines our vision for creating a more sustainable future. As a leading well expert and one of the most trusted partners in the energy industry, Expro is playing a key role in supporting a lower carbon world and a brighter future for our customers, employees and communities.
As a demonstration of Expro’s commitment to new technologies, during the first quarter, the company enhanced its well integrity offering with the acquisition of DFOS company SolaSense. Access to representative well data is key for making informed well performance and well integrity decisions. The SolaSense acquisition will allow Expro to build on its existing well intervention and integrity portfolio, leveraging our expertise to extend the lifespan of our customers’ wells while reducing time and costs.
Highlighting how technology is used to deliver efficiency, it was announced in the first quarter that Expro’s Autonomous Well Intervention System, Galea™, will be recognized at the 2022
In the first quarter, Expro also conducted a well integrity surveillance program in
In addition, Expro deployed the latest generation CoilHose™ from a light well intervention vessel to provide nitrogen lift services for a customer in
During the first quarter, the Company also continued to expand its Centri-Fi™ system, implementing its first run with an operator in the
Finally, Expro delivered downhole fluid capture services for a customer during the first quarter using its recently developed non-reactive sampling system. This unique technology provides an inert environment from sample capture through final analysis, while delivering the most accurate assessment of the hydrocarbons under investigation with no absorption of trace elements. This is critical to ensure the design of production facilities and pipelines are optimized for the produced fluids.
Segment Results
Unless otherwise noted, the following discussion compares the quarterly results for the first quarter of 2022 to the results for the fourth quarter of 2021.
NLA revenue totaled
NLA Segment EBITDA was
ESSA revenue totaled
ESSA Segment EBITDA during the three months ended
MENA revenue totaled
MENA Segment EBITDA for the three months ended
APAC revenue for the three months ended
APAC Segment EBITDA for the three months ended
Other Financial Information
On
The Company’s capital expenditures totaled
As of
Expro’s provision for income taxes for the first quarter of 2022 was
In the context of recent geopolitical events, we note we have minimal activity in
The financial measures provided that are not presented in accordance with
Additionally, downloadable financials are available on the Investor section of www.expro.com.
Conference Call
The Company will host a conference call to discuss first quarter 2022 results on
Participants may also join the conference call by dialing:
International: +1 (929) 526-1599
Access ID: 482756
To listen via live webcast, please visit the Investor section of www.expro.com.
The first quarter 2022 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 3 hours after the conclusion of the call and will remain available for a period of approximately 12 months.
To access the audio replay telephonically:
Dial-In:
Access ID: 324599
Start Date:
End Date:
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 believes 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 solutions.
With roots dating to 1938, Expro has more than 7,200 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 Twitter @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 and operating results. 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 outcome and results of the integration process associated with the Merger, 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, 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, such as COVID-19 and any variants thereof, 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
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 cash flow from operations, cash conversion, 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 cash flow from operations, cash conversion, 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 cash flow from operations, cash conversion, 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 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, 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 indirect support costs 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. Adjusted cash flow from operations is defined as net cash (used in) provided by operating activities adjusted for cash paid during the period for interest, net, severance and other expense and merger and integration expense. Cash conversion is defined as Adjusted cash flow from operations divided by Adjusted EBITDA, expressed as a percentage.
The Company defines adjusted net income (loss) as net loss before merger and integration expense, severance and other expense, New facility 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 loss per diluted share before merger and integration expense, severance and other expense, New facility 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.
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|
Three Months Ended |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
$ |
280,477 |
|
|
$ |
295,669 |
|
|
$ |
156,295 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue, excluding depreciation and amortization expense |
|
|
(239,530 |
) |
|
|
(252,373 |
) |
|
|
(137,068 |
) |
General and administrative expense, excluding depreciation and amortization expense |
|
|
(11,510 |
) |
|
|
(54,944 |
) |
|
|
(6,641 |
) |
Depreciation and amortization expense |
|
|
(35,012 |
) |
|
|
(44,111 |
) |
|
|
(27,759 |
) |
Merger and integration expense |
|
|
(4,725 |
) |
|
|
(28,450 |
) |
|
|
(4,823 |
) |
Gain on disposal of assets |
|
|
- |
|
|
|
1,000 |
|
|
|
- |
|
Severance and other expense |
|
|
(1,494 |
) |
|
|
(1,729 |
) |
|
|
(555 |
) |
Total operating cost and expenses |
|
|
(292,271 |
) |
|
|
(380,607 |
) |
|
|
(176,846 |
) |
Operating loss |
|
|
(11,794 |
) |
|
|
(84,938 |
) |
|
|
(20,551 |
) |
Other income, net |
|
|
996 |
|
|
|
2,681 |
|
|
|
239 |
|
Interest and finance income (expense), net |
|
|
13 |
|
|
|
(6,242 |
) |
|
|
(1,627 |
) |
Loss before taxes and equity in income of joint ventures |
|
|
(10,785 |
) |
|
|
(88,499 |
) |
|
|
(21,939 |
) |
Equity in income of joint ventures |
|
|
4,202 |
|
|
|
5,239 |
|
|
|
4,092 |
|
Loss before income taxes |
|
|
(6,583 |
) |
|
|
(83,260 |
) |
|
|
(17,847 |
) |
Income tax expense |
|
|
(4,549 |
) |
|
|
(7,944 |
) |
|
|
(2,545 |
) |
Net loss |
|
$ |
(11,132 |
) |
|
$ |
(91,204 |
) |
|
$ |
(20,392 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(0.10 |
) |
|
$ |
(0.84 |
) |
|
$ |
(0.29 |
) |
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
|
109,266,988 |
|
|
|
109,119,301 |
|
|
|
70,889,753 |
|
|
||||||||
|
|
|
|
|
|
|
||
|
|
2022 |
|
|
2021 |
|
||
Assets |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
214,392 |
|
|
$ |
235,390 |
|
Restricted cash |
|
|
4,024 |
|
|
|
4,457 |
|
Accounts receivable, net |
|
|
318,500 |
|
|
|
319,286 |
|
Inventories |
|
|
133,657 |
|
|
|
125,116 |
|
Assets held for sale |
|
|
211 |
|
|
|
6,386 |
|
Income tax receivables |
|
|
23,271 |
|
|
|
20,561 |
|
Other current assets |
|
|
55,871 |
|
|
|
52,938 |
|
Total current assets |
|
|
749,926 |
|
|
|
764,134 |
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
464,482 |
|
|
|
478,580 |
|
Investments in joint ventures |
|
|
61,806 |
|
|
|
57,604 |
|
Intangible assets, net |
|
|
255,024 |
|
|
|
253,053 |
|
|
|
|
179,903 |
|
|
|
179,903 |
|
Operating lease right-of-use assets |
|
|
81,328 |
|
|
|
83,372 |
|
Non-current accounts receivable, net |
|
|
11,211 |
|
|
|
11,531 |
|
Other non-current assets |
|
|
18,254 |
|
|
|
26,461 |
|
Total assets |
|
$ |
1,821,934 |
|
|
$ |
1,854,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
202,024 |
|
|
$ |
213,152 |
|
Income tax liabilities |
|
|
23,240 |
|
|
|
22,999 |
|
Finance lease liabilities |
|
|
1,101 |
|
|
|
1,147 |
|
Operating lease liabilities |
|
|
19,614 |
|
|
|
19,695 |
|
Other current liabilities |
|
|
63,358 |
|
|
|
74,213 |
|
Total current liabilities |
|
|
309,337 |
|
|
|
331,206 |
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities, net |
|
|
29,298 |
|
|
|
31,744 |
|
Post-retirement benefits |
|
|
26,729 |
|
|
|
29,120 |
|
Non-current finance lease liabilities |
|
|
15,452 |
|
|
|
15,772 |
|
Non-current operating lease liabilities |
|
|
70,662 |
|
|
|
73,688 |
|
Other non-current liabilities |
|
|
79,164 |
|
|
|
75,537 |
|
Total liabilities |
|
|
530,642 |
|
|
|
557,067 |
|
|
|
|
|
|
|
|
|
|
Total stockholders’ equity |
|
|
1,291,292 |
|
|
|
1,297,571 |
|
Total liabilities and stockholders’ equity |
|
$ |
1,821,934 |
|
|
$ |
1,854,638 |
|
|
||||||||
|
|
Three Months Ended |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(11,132 |
) |
|
$ |
(20,392 |
) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization expense |
|
|
35,012 |
|
|
|
27,759 |
|
Equity in income of joint ventures |
|
|
(4,202 |
) |
|
|
(4,092 |
) |
Stock-based compensation expense |
|
|
6,018 |
|
|
|
- |
|
Changes in fair value of investments |
|
|
1,502 |
|
|
|
- |
|
Elimination of unrealized profit on sales to joint ventures |
|
|
- |
|
|
|
5 |
|
Deferred taxes |
|
|
(2,448 |
) |
|
|
(656 |
) |
Unrealized foreign exchange |
|
|
(2,503 |
) |
|
|
1,255 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
2,163 |
|
|
|
(3,679 |
) |
Inventories |
|
|
(6,232 |
) |
|
|
(2,766 |
) |
Other assets |
|
|
(3,492 |
) |
|
|
1,410 |
|
Accounts payable and accrued liabilities |
|
|
(13,194 |
) |
|
|
4,288 |
|
Other liabilities |
|
|
(11,501 |
) |
|
|
6,324 |
|
Income taxes, net |
|
|
(719 |
) |
|
|
1,794 |
|
Other |
|
|
(3,434 |
) |
|
|
(1,609 |
) |
Net cash (used in) provided by operating activities |
|
|
(14,162 |
) |
|
|
9,641 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
(10,577 |
) |
|
|
(19,168 |
) |
Acquisition of technology |
|
|
(7,973 |
) |
|
|
- |
|
Proceeds from disposal of assets |
|
|
6,422 |
|
|
|
- |
|
Proceeds from sale of investments |
|
|
7,120 |
|
|
|
- |
|
Net cash used in investing activities |
|
|
(5,008 |
) |
|
|
(19,168 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Cash pledged for collateral deposits |
|
|
(61 |
) |
|
|
(287 |
) |
Payments of loan issuance and other transaction costs |
|
|
(95 |
) |
|
|
(175 |
) |
Payment of withholding taxes on stock-based compensation plans |
|
|
(1,104 |
) |
|
|
- |
|
Repayment of financed insurance premium |
|
|
(980 |
) |
|
|
- |
|
Repayments of finance leases |
|
|
(154 |
) |
|
|
(340 |
) |
Net cash used in financing activities |
|
|
(2,394 |
) |
|
|
(802 |
) |
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
133 |
|
|
|
(272 |
) |
Net decrease to cash and cash equivalents and restricted cash |
|
|
(21,431 |
) |
|
|
(10,601 |
) |
Cash and cash equivalents and restricted cash at beginning of period |
|
|
239,847 |
|
|
|
120,709 |
|
Cash and cash equivalents and restricted cash at end of period |
|
$ |
218,416 |
|
|
$ |
110,108 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
|
|
Cash paid for income taxes net of refunds |
|
$ |
7,716 |
|
|
$ |
1,408 |
|
Cash paid for interest, net |
|
|
903 |
|
|
|
981 |
|
Change in accounts payable and accrued expenses related to capital expenditures |
|
|
5,583 |
|
|
|
1,650 |
|
|
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Segment Revenue and Segment Revenue as Percentage of Total Revenue: |
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Three Months Ended |
|
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|
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|
|
|
|||||||||||||||
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|||||||||||||||
NLA |
|
$ |
103,861 |
|
|
|
37 |
% |
|
$ |
100,394 |
|
|
|
34 |
% |
|
$ |
30,363 |
|
|
|
19 |
% |
ESSA |
|
|
82,071 |
|
|
|
29 |
% |
|
|
94,322 |
|
|
|
32 |
% |
|
|
53,630 |
|
|
|
34 |
% |
MENA |
|
|
50,715 |
|
|
|
18 |
% |
|
|
49,464 |
|
|
|
17 |
% |
|
|
41,155 |
|
|
|
26 |
% |
APAC |
|
|
43,830 |
|
|
|
16 |
% |
|
|
51,489 |
|
|
|
17 |
% |
|
|
31,147 |
|
|
|
20 |
% |
Total |
|
$ |
280,477 |
|
|
|
100 |
% |
|
$ |
295,669 |
|
|
|
100 |
% |
|
$ |
156,295 |
|
|
|
100 |
% |
Segment EBITDA(1), Segment EBITDA Margin(2), Adjusted EBITDA and Adjusted EBITDA Margin(3): |
||||||||||||||||||||||||
|
|
Three Months Ended |
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|||||||||||||||
NLA |
|
$ |
21,827 |
|
|
|
21 |
% |
|
$ |
21,162 |
|
|
|
21 |
% |
|
$ |
2,428 |
|
|
|
8 |
% |
ESSA |
|
|
11,874 |
|
|
|
14 |
% |
|
|
19,859 |
|
|
|
21 |
% |
|
|
5,366 |
|
|
|
10 |
% |
MENA |
|
|
15,465 |
|
|
|
30 |
% |
|
|
16,076 |
|
|
|
33 |
% |
|
|
15,058 |
|
|
|
37 |
% |
APAC |
|
|
5,438 |
|
|
|
12 |
% |
|
|
12,206 |
|
|
|
24 |
% |
|
|
5,166 |
|
|
|
17 |
% |
|
|
|
54,604 |
|
|
|
|
|
|
|
69,303 |
|
|
|
|
|
|
|
28,018 |
|
|
|
|
|
Corporate costs (4) |
|
|
(21,965 |
) |
|
|
|
|
|
|
(23,985 |
) |
|
|
|
|
|
|
(14,684 |
) |
|
|
|
|
Equity in income of joint ventures |
|
|
4,202 |
|
|
|
|
|
|
|
5,239 |
|
|
|
|
|
|
|
4,092 |
|
|
|
|
|
Adjusted EBITDA |
|
$ |
36,841 |
|
|
|
13 |
% |
|
$ |
50,557 |
|
|
|
17 |
% |
|
$ |
17,426 |
|
|
|
11 |
% |
(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 and corporate costs 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, including research, engineering and development, logistics, sales and marketing and health and safety and are not attributable to a particular operating segment. |
|
||||||||||||||||||||||||
|
|
Three Months Ended |
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|||||||||||||||
Well construction |
|
$ |
111,435 |
|
|
|
40 |
% |
|
$ |
112,126 |
|
|
|
38 |
% |
|
$ |
- |
|
|
|
0 |
% |
Well management (1) |
|
|
169,042 |
|
|
|
60 |
% |
|
|
183,543 |
|
|
|
62 |
% |
|
|
156,295 |
|
|
|
100 |
% |
Total |
|
$ |
280,477 |
|
|
|
100 |
% |
|
$ |
295,669 |
|
|
|
100 |
% |
|
$ |
156,295 |
|
|
|
100 |
% |
(1) |
Well management consists of well flow management, subsea well access, and well intervention and integrity. |
|
||||||||||||
Contribution(1)(5) and Contribution Margin(2): |
||||||||||||
|
|
Three Months Ended |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
$ |
280,477 |
|
|
$ |
295,669 |
|
|
$ |
156,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue, excluding depreciation and amortization expense |
|
|
(239,530 |
) |
|
|
(252,373 |
) |
|
|
(137,068 |
) |
Indirect costs (included in cost of revenue) |
|
|
60,566 |
|
|
|
62,296 |
|
|
|
36,006 |
|
Stock-based compensation expense |
|
|
1,840 |
|
|
|
12,354 |
|
|
|
- |
|
Direct costs (excluding depreciation and amortization expense) (3) |
|
|
(177,124 |
) |
|
|
(177,723 |
) |
|
|
(101,062 |
) |
Contribution |
|
$ |
103,353 |
|
|
$ |
117,946 |
|
|
$ |
55,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution margin |
|
|
37 |
% |
|
|
40 |
% |
|
|
35 |
% |
Support Costs(4)(5): |
||||||||||||
|
|
Three Months Ended |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue, excluding depreciation and amortization expense |
|
$ |
239,530 |
|
|
$ |
252,373 |
|
|
$ |
137,068 |
|
Direct costs (excluding depreciation and amortization expense) |
|
|
(177,124 |
) |
|
|
(177,723 |
) |
|
|
(101,062 |
) |
Stock-based compensation expense |
|
|
(1,840 |
) |
|
|
(12,354 |
) |
|
|
- |
|
Indirect costs (included in cost of revenue) |
|
|
60,566 |
|
|
|
62,296 |
|
|
|
36,006 |
|
General and administrative expense (excluding depreciation and amortization expense, foreign exchange, and other non-routine costs) |
|
|
10,189 |
|
|
|
10,095 |
|
|
|
5,843 |
|
Total support costs |
|
$ |
70,755 |
|
|
$ |
72,391 |
|
|
$ |
41,849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total support costs as a percentage of revenue |
|
|
25 |
% |
|
|
24 |
% |
|
|
27 |
% |
(1) |
Expro defines Contribution as Total Revenue less Cost of Revenue, excluding depreciation and amortization, and indirect support costs 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 attributable to support the activities of the operating segments, research and engineering expenses and product line management costs included in Cost of revenue, and General and administrative expenses representing 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. |
(5) |
Comparative information for Direct costs, Support costs and Contribution has been restated to align legacy Frank’s direct and geography based support costs with Expro’s definition. |
|
||||||||||||
Adjusted EBITDA Reconciliation and Adjusted EBITDA Margin: |
||||||||||||
|
|
Three Months Ended |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
$ |
280,477 |
|
|
$ |
295,669 |
|
|
$ |
156,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(11,132 |
) |
|
$ |
(91,204 |
) |
|
$ |
(20,392 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
4,549 |
|
|
|
7,944 |
|
|
|
2,545 |
|
Depreciation and amortization expense |
|
|
35,012 |
|
|
|
44,111 |
|
|
|
27,759 |
|
Merger and integration expense |
|
|
4,725 |
|
|
|
28,450 |
|
|
|
4,823 |
|
Severance and other expense |
|
|
1,494 |
|
|
|
1,729 |
|
|
|
555 |
|
Gain on disposal of assets |
|
|
- |
|
|
|
(1,000 |
) |
|
|
- |
|
Other income, net |
|
|
(996 |
) |
|
|
(2,681 |
) |
|
|
(239 |
) |
Stock-based compensation expense |
|
|
6,018 |
|
|
|
54,162 |
|
|
|
- |
|
Foreign exchange (gains) losses |
|
|
(2,816 |
) |
|
|
2,804 |
|
|
|
748 |
|
Interest and finance (income) expense, net |
|
|
(13 |
) |
|
|
6,242 |
|
|
|
1,627 |
|
Adjusted EBITDA |
|
$ |
36,841 |
|
|
$ |
50,557 |
|
|
$ |
17,426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin |
|
|
13 |
% |
|
|
17 |
% |
|
|
11 |
% |
|
||||||||||||
Adjusted Cash Flow from Operations Reconciliation: |
||||||||||||
|
|
Three Months Ended |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by operating activities |
|
$ |
(14,162 |
) |
|
$ |
15,690 |
|
|
$ |
9,641 |
|
Cash paid during the period for interest, net |
|
|
903 |
|
|
|
1,176 |
|
|
|
981 |
|
Cash paid during the period for merger and integration expense |
|
|
11,632 |
|
|
|
22,390 |
|
|
|
4,524 |
|
Cash paid during the period for severance and other expense |
|
|
207 |
|
|
|
1,836 |
|
|
|
492 |
|
Adjusted Cash Flow from Operations |
|
$ |
(1,420 |
) |
|
$ |
41,092 |
|
|
$ |
15,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
36,841 |
|
|
$ |
50,557 |
|
|
$ |
17,426 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash conversion (1) |
|
|
(4 |
)% |
|
|
81 |
% |
|
|
90 |
% |
(1) |
Expro defines Cash Conversion as Adjusted Cash Flow from Operations divided by Adjusted EBITDA, expressed as a percentage. |
|
||||||||||||
Reconciliation of Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share: |
||||||||||||
|
|
Three Months Ended |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(11,132 |
) |
|
$ |
(91,204 |
) |
|
$ |
(20,392 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Merger and integration expense |
|
|
4,725 |
|
|
|
28,450 |
|
|
|
4,823 |
|
Severance and other expense |
|
|
1,494 |
|
|
|
1,729 |
|
|
|
555 |
|
New facility expense |
|
|
- |
|
|
|
4,603 |
|
|
|
- |
|
Stock-based compensation expense |
|
|
6,018 |
|
|
|
54,162 |
|
|
|
- |
|
Gain on disposal of assets |
|
|
- |
|
|
|
(1,000 |
) |
|
|
- |
|
Total adjustments, before taxes |
|
|
12,237 |
|
|
|
87,944 |
|
|
|
5,378 |
|
Tax benefit |
|
|
(324 |
) |
|
|
(441 |
) |
|
|
(5 |
) |
Total adjustments, net of taxes |
|
|
11,913 |
|
|
|
87,503 |
|
|
|
5,373 |
|
Adjusted net income (loss) |
|
$ |
781 |
|
|
$ |
(3,701 |
) |
|
$ |
(15,019 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported diluted weighted average common shares outstanding |
|
|
109,266,988 |
|
|
|
109,119,301 |
|
|
|
70,889,753 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported net loss per diluted share |
|
$ |
(0.10 |
) |
|
$ |
(0.84 |
) |
|
$ |
(0.29 |
) |
Adjusted net income (loss) per diluted share |
|
$ |
0.01 |
|
|
$ |
(0.03 |
) |
|
$ |
(0.21 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220505005143/en/
Investors contact:
InvestorRelations@expro.com
+1 281 994 1056
Media contact:
MediaRelations@expro.com
+44 1224 796729
Source:
FAQ
What were Expro's Q1 2022 revenue results?
How did Expro perform in terms of net loss in Q1 2022?
What key acquisitions did Expro complete recently?
Which segments showed revenue increases for Expro in Q1 2022?
What was Expro's adjusted EBITDA for Q1 2022?
